JSW Steel Limited · and GGBS cement (Operational plants’ capacity: 6.4 MTPA) JSW Infrastructure:...

JSW Steel LimitedInvestor PresentationFebruary 2017

2

Agenda

Business Environment

Overview Performance Overview

Value Proposition

3* Listed company

^ USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016)

JSW Group – overview

Presence across the core sectors

JSW Steel5,789

JSW Energy1,469

As on Dec 31, 2016

JSW Steel*: India’s leading integrated steelproducer (Steel making capacity: 18 MTPA)

JSW Cement: Manufacturer of PSC, OPCand GGBS cement (Operational plants’capacity: 6.4 MTPA)

JSW Infrastructure: Engaged in development and operations of ports (Operational capacity: 45 MTPA)

JSW Energy*: Engaged across the value chainof power business (Operational plants’capacity: 4,531 MW)

Market cap of listed businesses ($7,258 mn^)

4

JSW Steel – India’s leading steel manufacturer

Leading steel manufacturer

in India

Integrated manufacturing

process

Diversified product portfolio

Strong distribution network and

export presence

Globalpresence

Technological competence

Combination of state-of-the-art steel makingtechnologies: Corex, DRI,Blast Furnace

International presence in mining assets(Chile, US and Mozambique) and value-added facilities (Plate and Pipe mill in US)

Integrated steel manufacturingfacilities – from raw materialprocessing plants to value-addedproduct capacities

Installed capacity 18 MTPA, atstrategic locations in South andWest India

Pan India marketing anddistribution network, exportpresence in ~100 countries acrossthe 5 continents

Extensive portfolio of products – HR,CR, galvanized/galvalume, pre-painted,tinplates, electrical steel (CRNO) TMTbars, wire rods, special steel bars,rounds and blooms

5(1) Calculated as consolidated EBITDA/Saleable steel sales, (2) From 31st March 2002 to 31st March 2016,

(3) USD/ ` = 66.3329 (RBI reference rate as on Mar 31, 2016)

Transformational journey to market leadership

Unrelenting progress through the economic cycles

FY 2002 FY 2010 FY 2016

CAGR FY’02–16: 26%Revenue(USD mn)

262 2,939 6,313

CAGR FY’02–16: 25%EBITDA

(USD mn)42 627 941

CAGR FY’02–16: 19% Capacity increased to 18MTPA in Mar’16

Capacity (MTPA) 1.6 7.8 18.0

Significant value creation with 59x increase in market value(2)

Market Cap (USD mn)

80 3,485 4,676

Adopting industry leading technologiesTechnology Corex Corex, BF Corex, BF, DRI

CAGR FY’02–16: 18%Production (MTPA) 1.3 6.0 12.6

Continuously expanding product canvas with focus on high-end value-added products

Product Mix FlatsFlats, long, special

steel and value added

Flat, long, special steel & high value-added

auto, electrical grade

CAGR FY’02–16: 6%EBITDA/ton(1)

(USD/ton)33 110 77

6

2016

18 MTPA (Vijayanagar Works and Dolvi Works capacity increased to 12 and 5 MTPA, respectively)

(1) Southern Iron and Steel Company, (2) Amba River Coke Limited

Combination of Organic and Inorganic growth

2002

1.6 MTPA

2005

2.5 MTPA

Color Coating Line

Acquired EURO IKON

2007

4.8 MTPA

CRM of 1.0 MTPA

Acquisition of Plate and Pipe Mill in US

Coal mining concessions in Mozambique

2008

Iron Ore mines acquired in Chile

2009

7.8 MTPA2006

3.8 MTPA 2010

JSW-JFE Strategic Partnership

3.5 MTPA of HSM II

Coal mining concessions in US

2011

Acquisition of 49.3% stake in Ispat 2012

HSM II Capacity Expansion to 5 MTPA2004

Acquired SISCOL(1)

2013

14.3 MTPA post Ispat merger

2014

New CRM2—Phase I

4 MTPA—Pellet Plant(2)

1 MTPA—Coke Oven Plant(2)

Acquired 50% stake in Vallabh Tinplate

Acquired Welspun Maxsteel

Key Projects in progress/pipeline:

Salem Works capacity expansion to 1.2MTPA

0.2MTPA Tin plate mill at Tarapur Complex

Pipe Conveyor System for Iron ore and new Water Reservoir at Vijayanagar

1.5mtpa Coke Oven at DCPL (Dolvi Works)

Continuously evaluating opportunities to deliver value enhancing growth

2015

New CRM2—Phase 2

0.2MTPA Electrical Steel Mill

7

JSW – JFE strategic partnership

One of the largest FDI in the Indian Metals and Mining space – Equity infusion by JFE of `5,410 Crores (~$1.2 bn) for 14.99% equity stake

Deleveraged Balance Sheet to support next phase of growth

Access to cutting edge technologies and fast growing automotive steel market

Operational excellence to result in cost reduction

JSW Steel:

Focused expansion plans in India

Optimized capital structure through deleveraging

Access to cutting edge technologies

JFE:

Presence in growing Indian market

Future growth through equity participation

Strategic production base in India for existing automobile customers

Benefits to JSW Steel:

Access to fast growing auto steel market

Short learning curve

Application engineering

New product development

Benchmarking and personnel training

Operational excellence and cost reduction for sustainable business operations by:

Improvement in quality, productivity, yield , and energy efficiency

Sharing best maintenance, environment management, and safety practices

Benchmarking, training and talent sharing

Standardization of processes

Value creation for both the partners Automotive technology agreementsGeneral technical assistance

agreements

8

Balanced corporate strategy

Selective

Growth

Diversification of Product Profile and

Customer Base

Backward & Forward Integration, and Focus on

Resource Optimization

Prudent Financial Principles

Sustainability with focus on Quality, R&D and Innovation

Maintain market share of 14-15% through selective organic and inorganic growth

Undertake brownfield expansions at low specific investment cost per ton

Consider inorganic opportunities that are value accretive

Increase proportion of high margin value-added products

Diversify customer base, both within India and abroad

Continue to focus on rural markets in India

Continue to evaluate raw material assets in India and abroad to secure key raw material supplies and to reduce cost of production by targeting strategic tie-ups and investments

Focus on cost reduction and energy efficiency

Continuously seeks to improve financial profile

Manage capacity expansion and debt profile to capture market opportunities without excessive risk

Committed to sustainable and eco-friendly technologies to drive growth

Focus on Quality, R&D and Innovation to drive breakthrough cost efficiency

9

Strong and balanced Board comprising experts of eminence & integrity

Savitri Devi JindalNaveen Raj SinghNominee Director of KSIIDC

Executive Directors Independent Directors Nominee DirectorsChairperson—Emeritus

Sajjan JindalChairman & Managing Director

Seshagiri Rao M.V.SJoint Managing Director & Group CFO

Dr. Vinod Nowal Dy. Managing Director

Jayant AcharyaDirector (Commercial & Marketing)

Dr. Vijay Kelkar Ex-Finance Secretary, Ex-Secretary of MoP&G, Ex-Chairman Finance Commission

Promoter Director

Board fundamentally committed to sustainable business

Haigreve KhaitanSenior Partner at M/s. Khaitan& Co, India's one of the oldest and full service law firm

Malay Mukherjee 40yrs of rich experience in mining and steel industry

Seturaman MahalingamCA, Ex-CFO of TCS, Ex member of the Tax Administration Reform Commission

Kannan Vijayaraghavan, FCA and Certified Management Consultant

Dr. Punita Kumar Sinha Former CIO at The Asia Tigers Fund

Hiromu OkaNominee Director of JFE Steel Corporation

10

FY16 performance on sustainability matrixes

71% Waste heat utilized98.5%Waste gases

utilization

943,808 MTScrap recycled

9%Decrease in LTIFR over FY 15

3.51 MnGJ

Energy saved

30%Recycled & reused water

0% Liquid discharged from our Plants

1897 MT Waste recycled

Award in 2016:

‘Golden Peacock Innovative Product’ Award

‘Steelie Award 2016’ in the innovation category for “the development of advanced high strength automotive steels with speed and innovation” by the World Steel Association

The National Award for Supply Chain and Logistics Excellence under steel industry Category by CII

Accreditation with level 5 for Total Cost Management (TCM) Maturity Model Assessment by TCM division of CII

2nd Prize in the National Energy Conservation Awards 2016 to Vijayanagar Works in “Integrated Steel Sector” and Kalmeshwar

Works in “Steel Re-Rolling Mills Sector” by ‘Bureau of Energy Efficiency’ of India

Awards in 2015:

Porter’s Prize for ‘Leveraging Unique Activities’

JSW Group received Porter’s Prize for ‘Creating Shared Values’

11

Agenda



Value Proposition

12

A platform of strength and agility

1 Strong fundamentals to boost India steel demand

2 Multi-location manufacturing facilities in India

3 Strategic overseas presence

4 Diversified product profile

5 Domestic market leader with strong export presence

6 Strong sales and marketing platform

7 Focus on operational efficiency

8 Strategic expansion aided by strong project execution

9 Proven ability to acquire and turnaround assets

10 Robust financial profile

13

(200)

0

200

400

600

800

1,000

1,200

1,400

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

(1) Reserve Bank of India, (2) World Steel Association, World Bank, IMF, (3) World Steel Association and IMF, (4) 12th

Five-Year Plan (India), (5) IHS Automotive, (6) Bubble size represents total steel demand of respective country

Strong fundamentals to boost India steel demand1

5.6% 6.6% 7.2% 7.9% 7.1% 7.4%

FY13 FY14 FY15 FY16 FY17E FY18E

Decisive mandate in India general elections

Strong investor confidence and raised expectations of fast-paceddecision-making and economic reforms

China

IndiaBrazilMexicoRussia

Italy

Japan

South Korea

France

Canada

Germany

USA

Upturn in overall GDP growth(1)

• (%)

Infrastructure sector is a key focus area for the newgovernment Infrastructure investment expected to reach ~$1 trillion during

2012-2017(4)

New government is focused to give impetus to infrastructure sector

Automobile sector expected to turn around India projected to become 3rd largest automotive market in the

world by 2016(5)

Faster economic growth and government's policies is likely to drivevolumes and revive the automobile sector

India steel consumption to rise at a faster rate

o India’s steel consumption was 61MT in 2015 and is expected to rise to ~64MT in 2016 and ~67MT in 2017(3)

Potential for substantial growth in steel consumption(2)(6)

o World Per Capita Consumption is ~207 Kgs.o India Per Capita Consumption is ~61 Kgs.

Pe

r ca

pit

a St

ee

l Co

nsu

mp

tio

n i

n 2

01

5 (K

g.)

GDP per capita in 2015 ($)

With the growth in economy, JSW Steel is well positioned to be part of the India growth story

14*JSW Steel Coated Products Limited

Multi-location manufacturing facilities in India2

Dolvi: 5 MTPA

3.5 MTPA Blast Furnace 1.6 MTPA gas based DRI 55 MW Power Plant

Salem: 1 MTPA

1 MTPA Blast Furnaces 0.5 MTPA Blooming Mill 60 MW Power Plant

Kalmeshwar (JSCPL*)

0.58 MTPA GP/GC 0.19 MTPA Colour Coating Line

Vasind & Tarapur (JSCPL*)

1.18 MTPA GP/GC 0.5 MTPA Colour Coating Line 30 MW Power Plant

Vijayanagar: 12 MTPA

1.7 MTPA Corex 10.4 MTPA Blast Furnaces 855 MW Power Plant

Leveraging locational advantage to increase market share strategically in the Southern and Western regions of India

Salav: 0.9 MTPA DRI

15

Strategic overseas presence

JSW Steel ownership: 100% Early stage development in progress

Mozambique coal mines

JSW Steel ownership: 70% Acquisition cost: $252mn Started operations in FY11 Maritime concession to develop cape size port in

North Caldera

Chile iron ore mines

JSW Steel ownership: 90% Acquisition cost: $810mn Capacity: 1.2 Net MTPA Plates and 0.55 Net

MTPA Pipes Acquired in 2007 Opportunity for diversification in terms of

products, markets and geographies

US plate and pipe mill

JSW Steel ownership: 100% Acquisition cost: $70mn

US coal mines

3

Strategic overseas presence for backward integration and value-added facilities

16

Diversified Product Profile

Wide Offering of Flat and Long Products

Developing New Products, Capturing

Niche Markets

Continuously Increasing Value Added Products

GC

TMT

Slabs

ColorCoated

HRC

Billets

HR Plates

Blooms

CRC

Wire Rods

Automotive Grade Steel

Enhanced focus on cold rolled, galvanised and galvanneal products for body panels of automobiles

Manufactured at a new CRM2 complex

Color Coated Products

Largest color coated facility to address construction, warehousing and roofing requirements

State-of-the-art color coating line for appliance grade products used in consumer durables

Electrical Steel Commissioned Cold Rolled Non-grain Oriented (CRNO) steel plant to address domestic

demand by substituting imports of high grade electrical steel

Diversified portfolio to address growing demand for value-added steel

Commissioned new facilities to further enrich product mix

Leveraging JFE Steel’s well-established manufacturing technology for high value-added products for auto-grade steel

4

Continuously enriching product mix

17

77% 85% 84% 76%88%

23% 15% 16% 24%12%

FY08 FY10 FY12 FY15 FY16

(1) Joint Plant Committee

Domestic market leader with strong export presence

11.4% 13.4% 6.9% 3.3%India Finished Steel Consumption Growth(1)

JSW Export Turnover as % of Total

JSW Domestic Turnover as % of Total

5

Penetrating further to capture growing domestic demand withunique marketing strategy – unique nationwide retail network(JSW Connect, JSW Shoppe, JSW Explore as well as non-exclusive retailers) of more than 6,583 outlets with footprintsacross 495 districts

Leadership position in India (domestic sales surged by 20%YoYin FY16 vs. apparent steel demand growth of 4.5% in India)and largest exporter of steel products out of India

Exports to high demand regions such as Asia, Middle East,Europe and the US – presence in over 100 countries

Ability to re-align sales effort and shift between domestic andexport market as per market conditions – strategicallyreduced share of exports to 12% of total sales as global steelconsumption declined 3%YoY in CY15

Flexibility to shift between domestic and international markets based on market conditions

4.5%

18

Multi-sectoral volume growth

Optimizing market mix and product mix to derivemaximum benefit from sector growth

Leveraging export presence

New product approvals for Original EquipmentManufacturers (OEMs) and automotive customers

Increase in value added products leading toincremental growth in focus sectors and alsofacilitating import substitution

Focused on Retail Sales – increased reach andpenetration

Strong sales and marketing platform

Segmented approach to address different retail segments

Metro / Urban

Urban /Semi-urban

Semi-urban /

Rural

‘JSW explore’ Branded, multiple product service

center for steel solutions

Just-in-time solution with in-houseprofiling lines and Value Added Services

Franchisee Model

‘JSW Shoppe’

Steel distribution

Enhanced customer experience

‘JSW Shoppe Connect’ Smaller retail format linked to JSW

explore/Shoppe

Last mile link to talukas/rural areas

Sales to end consumers and MSMEs

Increased customer focus and market penetration

6

19(1) Total production (12.56MT) divided by total no. of employees on Company payroll (11,904) in FY16

Focus on operational efficiency

Coke Making: Recovery and Non-recovery Coke Ovens

Agglomeration: Pelletisation and Beneficiation Plants

Iron Making: Blast Furnace, Corex, Sponge Iron (DRI)

Steel Making: Basic Oxygen Furnace (BOF), Electric Arc Furnace (EAF), Conarc

Casting: Continuous Casting, Thin Slab Casting, Billet Casting

Improving labor productivity: Currentproduction of ~1,055 tons/ employee(1)

In-house training programs internal faculty

Continuously investing, building and enhancing competencies

Integrated manufacturing facilities: Frompelletisation/beneficiation to downstreamvalue-add capabilities

Dedicated port and railway siding forlogistics support

100% assured power supply throughcaptive power plants and arrangementswith JSW Energy and the power grid

Diverse blend of technology High labour productivity Integrated operations

Reduced raw material costs

Focus on process improvements

Waste gas utilization for power generation

Efficient operations resulting in low conversion cost

Resulting in operational efficiency

7

High level of integration and technological expertise leading to reduced production cost and time

20(1) Vijayanagar works expansions

Strategic expansion aided by strong project execution8

Focus on low cost and returns accretive brownfield projects to capitalise on expected demand recovery

Strong project execution capabilities ….

Experienced in-house project management team

Supported by cross-functional team (commercial, finance and legaldepartment)

Established long-term relationship with key domestic and internationalsuppliers

Savings in procurement cost by negotiating firm prices for follow-on orders

… at low specific investment cost(1)

Reduced specific investment cost/ton of capacityexpansion shows cost efficiency

Major new & on-going Projects

Vijayanagar Works:

Pipe conveyor system for Iron ore and new water reservoir

Dolvi Works:

1.5mtpa Coke Oven at DCPL (Dolvi Works)

Salem Works:

Capacity expansion from 1 MTPA to 1.2 MTPA by setting upcertain new facilities and debottlenecking/ modification of existingfacilities

Setting-up of Reheating Furnace in Bar Rod Mill, Coke Oven and

Turbo Generator

Tarapur Works:

Setting up 0.2MTPA Tin plate mill

1.6 MTPA• FY 2003• USD 923/mt

2.5 MTPA• FY 2006• USD 682/mt

3.8 MTPA• FY 2007• USD 550/mt

7.8 MTPA• FY 2009• USD 559/mt

11 MTPA• FY 2012• USD 545/mt

21(1) Implemented in a wholly owned subsidiary Amba River Coke Limited.

Proven ability to acquire and turnaround assets

December 2010 Completed Initiatives—FY2011–2015 FY2016-2017

Inability to service existing debt

Inadequate cashflows

Corporate debt restructuring (CDR) case

Exit from CDR

Generating positive profit after tax

Plant under maintenance Loss making at EBITDA level High interest cost Financially distressed

Infusion of equity Alignment of marketing strategies resulting in freight

synergies and VAT benefits Reduction of high cost working capital funding Refinancing of existing debt Electricity sourcing from JSW Energy at competitive

prices Commissioning of 4MTPA pellet plant(1), 1MTPA coke

oven(1), waste gas based 55MW power plant, railway siding, and lime calcination plant

Capacity expanded to 5MTPA, ramp-up/stabilization is underway

Further operational improvements underway

Operational improvements underway

Case Study: Turnaround strategy at JSW Ispat’s Dolvi plant

JSW Steel has a proven track record of acquiring troubled assets and turning them around in record time by closely integrating them with its existing operations thus creating synergies and optimizing cost

9

Able to leverage an acquisition to maximum value accretion through application of knowledge and experience

22

Robust financial profile10

Strong track record of volume growth

Achieved significant sales growth despite weak economic and sluggish domestic demand inpast 2 years

Superior profitability supported by efficient operations

Resilient operations with improved EBITDA margin marked by several productivity and costimprovement measures in FY14 and FY15

FY16 EBITDA was under pressure amidst weak steel pricing due to steel supply glut andshutdowns but it should improve in FY17

Well-capitalized balance sheet

Adequate liquidity levels owing to prearranged funding in place for capacity expansions and acommitted working capital facility

Financial flexibility to raise capital

Diverse sources of funding

Strong relationships with over 50 banks/financial institutions with access to low cost credit

Healthy mix of local and foreign currency debt

23

Historical EBITDA per ton – JSW Steel Standalone

7,71

7

7,07

7

9,27

6

5,89

2

4,05

9 5,40

0

5,39

8

5,46

9 6,98

8 8,53

4

8,54

5

8,05

2

7,47

8

7,13

7

6,85

9

6,98

5

6,05

4 7,02

8 8,40

2

7,15

1

6,56

9

6,88

7 8,34

0 9,54

6

6,27

9

6,26

8

8,68

6

3QFY

17

2QFY

17

1QFY

17

4QFY

16

3QFY

16

2QFY

16

1QFY

16

4QFY

15

3QFY

15

2QFY

15

1QFY

15

4QFY

14

3QFY

14

2QFY

14

1QFY

14

4QFY

13

3QFY

13

2QFY

13

1QFY

13

4QFY

12

3QFY

12

2QFY

12

1QFY

12

4QFY

11

3QFY

11

2QFY

11

1QFY

11

EBIT

DA

(R

s p

er

ton

)

24

Agenda



Value Proposition

25

Key highlights – 3QFY17

Standalone performance

Crude Steel production: 3.86 million tonnes

Saleable Steel sales: 3.64 million tonnes

Highest ever Total Income from Operation : `14,583 crore

Quarterly EBITDA : `2,809 crores

Net Debt to Equity: 1.72x and Net Debt to EBITDA: 3.72x

Consolidated performance

Highest ever Total Income from Operation : `15,312 crore

Quarterly Operating EBITDA : `2,867 crore

Net Debt to Equity: 2.11x and Net Debt to EBITDA: 4.02x

Key update

The National Award for Supply Chain and Logistics Excellence by Confederation of IndianIndustry (CII) under steel industry Category in its 3rd edition of the Supply Chain and LogisticsExcellence (Scale) Awards

Accreditation with level 5 by TCM division of CII for Total Cost Management (TCM) MaturityModel Assessment – an exemplary rating (Highest in the category)

The National Energy Conservation Award 2016 by ‘Bureau of Energy Efficiency’ of India:

Vijayanagar Works as 2nd Prize winner in the category of “Integrated Steel Sector”, and

Kalmeshwar Works as 2nd Prize winner in the category of “Steel Re-Rolling Mills Sector”

26

2.70

3.86 3.98

3QFY16 3QFY17 2QFY17

Crude Steel Production

Quarterly volumes – standalone

YoY

43%


Flat 1.87 2.83 2.86

Long 0.63 0.74 0.79

2.55

3.64 3.84


Saleable Steel Sales

YoY

43%


Flat 1.86 2.79 2.80

Long 0.66 0.73 0.81

Semis 0.03 0.12 0.23

QoQ

-3%

QoQ

-5%

All figures are in million tonnes

27

9.36

11.70

9MFY16 9MFY17

Crude Steel Production

9M volumes – standalone

YoY

25%

9MFY16 9MFY17

Flat 6.77 8.07

Long 1.93 2.28

Semis 0.15 0.47

All figures are in million tonnes

9MFY16 9MFY17

Flat 7.60 8.43

Long 1.58 2.39

8.84

10.82

9MFY16 9MFY17

Saleable Steel Sales

YoY

22%

28All figures are in million tonnes, * Domestic sales, ^ Total sales (JSW Steel Standalone + JSW Steel Coated Products after netting-off inter-company sales), Value added & special products include HRPO, CRFH, CRCA, ES, Galvanised, Colour Coated, and special bars and rounds

Quarterly sales highlights – consolidated

Domestic sales grew 22%YoY and Exports sales grew 133%YoY

Automotive sales grew 29%YoY

Overall value added & special products (VASP) sales grew 38%YoY – CRCA ~43% , Special Longs ~23%,Coated ~23%; overall VASP improved to 37% of total sales

49% 57% 52%

40% 32% 36%

11% 12% 12%2.34* 2.85* 2.83*

12% 21% 26%

2.67^ 3.61^ 3.82^


OE Retail Auto Exports

1.71 2.29

2.54 0.96

1.32 1.28


Other products Value added & special Products

Focused efforts towards value added & special products sales

29^ Total retail sales (JSW Steel Standalone + JSW Steel Coated Products after netting-off inter-company sales)

Quarterly retail sales highlights – consolidated

Overall retail sales was impacted by liquidity issues post demonatiztion

HRPO sales grew 34%YoY and HRCTL sales grew 8%YoY

515 481 561

421 421 466


Others Branded Sales

Retail sales^ (‘000 tonnes)

9029361,027

Added 126 new Retailers to the network Engaged with 2,400+ influencer/ retailers through

181 influencer meets 200 engineers visited Vijayanagar works through 5

plant visits

Network expansion and Influencer programme

30Indicates new grade approval in 3QFY17

Above mentioned approved grades are the highest among the specific product/grade-group; the lower grades upto the highest grades are also approved.

Automotive, Appliance and General Eng. grade approvals

Applications Components

Hood 270F 340P 270F 340P JSC340HN

Roof 270F 590R

Doors 270F JSC270DU 270F JAC270DU SGARC40

Body side outer 270F 270F JAC340P

BIW (Inner) 980Y 590R 440W

Floor 270F HX220YD SAGA270C

Structural 980Y 590Y 590R BSK46 SAPH 370

Reinf. Pillar 980Y HX180YD SGARC440

Fuel Tank DX57

Wheels SPFH440 SPFH590 SAPH 590 HR 750

Engine SCM435 S36CV 86B45 SAE1070 SAE4140 SAE1018 EN1APB 16MnCr5LSi

Transmission 16MnCr5 SAE4124 SAE8822 SAE5160 SAE4145 20MnCr5Ni

Axels 150M36

Tractor 815M17

Suspension 51CrMoVn

Bearings 100CrMnSi6-4 SAF5019

Front Panel EDD IF

Side Panel D DD

Cylinder Cell

Structural SS540 MSL I Gr6 ASTM A 792

Weather Resistant IRSM 41

CR Coated HRPO

HR Alloy Steel Longs

General Eng.

IS15194 HS345

Grades Approved

Automotive

Appliance

31USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016)

* Not Annualized

3Q Financials – standalone

Particulars 3QFY17 3QFY16

` Crores USD mn ` Crores USD mn

Total Income from Operations 14,583 2,146 8,138 1,198

Operating EBITDA 2,809 413 1,035 152

Other Income 78 11 96 14

Finance Cost 901 133 796 117

Depreciation 794 117 716 105

Exceptional Items - - 5,597 824

Profit Before Tax 1,192 175 (5,978) (880)

Tax 373 55 (1,823) (268)

Profit after Tax 819 121 (4,154) (611)

Diluted EPS (`)* 3.39 (17.36)

32

Particulars 9MFY17 9MFY16



Operating EBITDA 8,625 1,269 4,434 652


Finance Cost 2,680 394 2,390 352

Depreciation 2,325 342 2,126 313



Tax 1,220 180 (1,748) (257)

Profit after Tax 2,573 379 (3,897) (573)

Diluted EPS (`)* 10.65 (16.29)

USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016)

* Not Annualized

9M Financials – standalone

33USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016)

Operating EBITDA movement – standalone

` crore

1,035

2,809

366

2,392

(987) (53)

57

EBITDA 3QFY16as per Ind-AS

Volume NSR Cost Others Ind-AS Impact in3QFY17 vs. 3QFY16

EBITDA3QFY17

$152

$352

$54

($145) ($8)

$8 $413

34

Volumes 3QFY17 3QFY16 9MFY17 9MFY16

Production 0.43 0.33 1.29 1.11

Sales 0.43 0.34 1.27 1.14

` crore

Operational performance – JSW Steel Coated Products

Million tonnes

Key P&L data 3QFY17 3QFY16 9MFY17 9MFY16


Operating EBITDA 142 38 468 251

Profit after Tax 55 (16) 208 45

35

Sales (net tonnes) 3QFY17 3QFY16 9MFY17 9MFY16

Plate Mill 31,009 36,192 89,477 1,26,215

Pipe Mill 11,544 12,421 29,726 47,175

Production (net tonnes) 3QFY17 3QFY16 9MFY17 9MFY16

Plate Mill 42,291 48,547 1,28,937 1,64,978

Utilization (%) 18% 20% 18% 23%

Pipe Mill 11,585 13,217 28,432 42,800

Utilization (%) 8% 10% 7% 10%

USD mn

Net tonnes = 0.907 metric tonnes

Operational performance – US Plate & Pipe Mill

Key P&L data 3QFY17 3QFY16 9MFY17 9MFY16

Revenue from Operations 32.37 39.58 94.94 145.45

EBITDA + Other Income (4.36) (4.89) (9.58) (17.38)

36

Particulars 3QFY17 3QFY16



Operating EBITDA 2,867 422 977 144


Finance Cost 920 135 891 131

Depreciation 915 135 830 122



Tax 351 52 (2,025) (298)

Share of Associates, JV and non-controlling Interest 16 2 105 15

Profit after Tax 730 107 (709) (104)

Diluted EPS (`)* 3.02 (2.96)


* Not Annualized

3Q Financials – consolidated

37

Particulars 9MFY17 9MFY16



Operating EBITDA 9,095 1,338 4,477 659


Finance Cost 2,821 415 2,745 404

Depreciation 2,638 388 2,495 367



Tax 1,275 188 (1,975) (291)

Share of Associates, JV and non-controlling Interest 108 16 169 25

Profit after Tax 2,566 378 (632) (93)

Diluted EPS (`)* 10.61 (2.64)


* Not Annualized

9M Financials – consolidated

38

43,937 44,265 245

803

245

641

Net Debt*as on Sep'16

New Loan Taken Repayments Fx Impact Movement in FD/MF Net Debt*as on Dec'16

$6,466 $36

($118)

$36

$94 $6,514

*Net Debt excludes Acceptances


Net debt movement – consolidated

` crore

Particulars 31.12.2016 30.09.2016

Cash & cash equivalent (` crore) 1,322 1,963

Net Debt/Equity (x) 2.11 2.15

Net Debt/EBITDA (x) 4.02 4.82

39

Agenda



Value Proposition

40

47

50

53

56

59

Jun

-13

De

c-1

3

Jun

-14

De

c-1

4

Jun

-15

De

c-1

5

Jun

-16

De

c-1

6

US EurozoneJapan China

PMI Manufacturing

Source: Bloomberg, IMF and JSW Steel

Global economy

Global economy is projected to grow by 3.4% in CY17

Recent data indicate US growth recovery is robustenough for Fed to carry out another rate increase

Euro area growth remains resilient in the face of Brexitshock; political risk in the coming year to be watched outfor

Japan growth improved in 3QCY16, manufacturing PMIremained above 50 for 4th consecutive month

China growth rate in 4QCY16 at 6.8%YoY was a bitstronger than expected, supported by continued policystimulus

However, overall Global growth expectations remainunchanged amidst uncertainty around the US policiesand their implications for the global economy3.

1% 1.6% 1.

6%

1.7

%

0.9% 4.1

%

6.6%

6.7%

3.4%

1.9% 2.3

%

1.6%

0.8% 4.

5%

7.2%

6.5%

World AMEs US Euro

Area

Japan EMEs India China

2016

2017

GDP growth - IMF projections for 2016 and 2017 (%YoY)

41Source: SBB, ISSB, MySteel, Bloomberg and JSW Steel

Global steel scenario

Continued trade restrictions to influence global steel trade

Exports from China, Japan, Korea and Russiacontinue to remain at elevated levels

Japanese and Korean exports continue to be at adiscount to their domestic market prices

Coking coal contract price for 1QCY17 has beensettled at $285/t and Iron ore price remains atelevated level. This will keep steel prices range-bound

-

60

120

180

240

300

- 125 250 375 500 625 750

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Hard coking coal FOB - RHS Korea - DomesticJapan - Domestic China - export FOBJapan & Korea - export FOB Iron ore China CFR -RHS

$/to

nne

$/to

nne

157194

214 210

0

60

120

180

240

CY13 CY14 CY15 CY16China Japan Korea Russia

Steel exports (mn tonnes)

42

84

1

63

4

58

7

69

0

64

8

57

6

69

3

61

8

73

3 1

,05

8

De

c-1

6

No

v-1

6

Oct

-16

Sep

-16

Au

g-1

6

Jul-

16

Jun

-16

May

-16

Ap

r-1

6

FY1

6^

Monthly steel imports (in '000 tons)+33%

Source: JPC and JSW Steel, All figures are in million tonnes, ^Average monthly imports during FY16, * Apparent finished steel consumption net of double counting effect

Indian economy and steel industry

Imports surged to 10MTPA on annualized basis in Dec’16 –back to pre MIP Level; relook at trade remedial measuresis necessary

Crude steel production increased by 8.8%YoY whereasapparent finished steel consumption grew by 3.4%YoY in9MFY17

Tepid steel demand reflects weak investment cycle, expectdigital push and re-monetization to restore normalcy indemand

The upcoming budget will be key with regard togovernment’s policies to stimulate infrastructureinvestment and consumption growth via higher publicspending and lower tax rates

Demand remains weak, rising imports is a cause of concern

66.5259.54

72.3561.54

Crude Steel Production Apparent Finished Steel

Consumption*9MFY16 9MFY17

8.8%3.4%

43

Certain statements in this report concerning our future growth prospects are forward looking statements, which involve anumber of risks, and uncertainties that could cause actual results to differ materially from those in such forward lookingstatements. The risk and uncertainties relating to these statements include, but are not limited to risks and uncertaintiesregarding fluctuations in earnings, our ability to manage growth, intense competition within Steel industry including thosefactors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilledprofessionals, time and cost overruns on fixed-price, fixed-time frame contracts, our ability to commission mines withincontemplated time and costs, our ability to raise the finance within time and cost client concentration, restrictions onimmigration, our ability to manage our internal operations, reduced demand for steel, our ability to successfully completeand integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which theCompany has made strategic investments, withdrawal of fiscal/governmental incentives, impact of regulatory measures,political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of ourintellectual property and general economic conditions affecting our industry. The company does not undertake to update anyforward looking statements that may be made from time to time by or on behalf of the company.

Forward looking and cautionary statement

44

Thank you

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