Steel Industry and

Company Background

December 2013

Sahaviriya Steel Industries PLC

1

The information contained in this presentation is intended solely for your personal reference only. If you

are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any

action in reliance upon this material.

This presentation is not intended to substitute your own analysis and investigation, and should not be

considered a recommendation to any recipient of this presentation. Some statements contained herein

are forward-looking statements identified by the use of forward-looking terminology such as “may”, “will”,

“expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words, which are subject to

various risks and uncertainties. These statements include statements with respect to Sahaviriya Steel

Industries Public Company Limited (the “Company” or “SSI”)’s, Sahaviriya Steel Industries UK Limited

(“SSI UK”)’s and their subsidiaries (collectively referred to as “SSI Group”) corporate plans, strategies and

beliefs and other statements that are not historical facts.

This presentation is prepared based on the assumptions and beliefs of SSI Group’s management in light

of the information currently available to the Company involving risks and uncertainties which may cause

the actual results, performance or achievements to be materially different from any future results,

performance or achievements expressed or implied by such forward-looking statements. Nothing in this

presentation is, or shall be relied on as promise or representation of the Company as to the future.

Disclaimer

2

Steel Industry Overview & Production Process

ASEAN Steel Market & Key Growth Drivers

SSI Group Background

Performance & Financial Results

Agenda

3

SSI, GJS, GSTEL

*Other Listed Companies in Distribution, Processing, and Further Downstream Industries

AMC, CEN, CITY, CSP, INOX, LHK, MAX, MCS, PAP, PERM, RICH, SAM, SMIT, SSSC, TGPRO, TMT, TUCC, TWP, TYM

BSBM, MILL, TSTH, TYCN

Steel Industry Overview

SSI UK, GJS, GSTEL

SSI UK GJS, GSTEL

Note: SSI UK’s current facilities do not include pellets plant. Note: GJS’s and GSTEL’s current facilities do not

include pellets plant and direct reduction plant.

4

Commercial Grade

General steel pipes

General steel structure

General steel cut-to-sheet

Unique Products

Steel pipes

Steel cut-to-sheet

Floor plate steel

High Grade

Re-rolling (Cold-rolled Steel)

Gas cylinder & pressure vessels

Automotive OEM & auto parts

HA/EA parts

Shipbuilding & high strength

structure

Atmospheric resistant steel &

line pipe

Machinery &industrial tools

Sectors Products

HRC-P/O

HRC

Applications

SS

I T

H

Slab

Products

SS

I U

K

Pla

te M

ills

Billet*

Mills

*Currently not in operation by SSI UK.

Tube Round

Bars & Rods

Steel Plates Shipbuilding

Crude oil storage tanks

Bridge construction

Off-shore structures

Threaded bars for construction

Wire rods

Springs

Off-shore line pipes

Oil & gas casing & tubing line

pipes

SSI Group’s Steel Products and Applications

5

High-grade

Unique

IVPs

Premium Value Products (PVPs) are steel products with premium value added resulted from our

initiatives to innovate and develop higher-quality products and services to better serve customers’ need.

Our PVPs consist of High-grade Products, Unique Products and Innovated Value Products (IVPs).

Definitions Hot-rolled steel products with high quality

through various quality control processes

for specific qualifications i.e. chemical,

mechanical, surface, etc. Hot-rolled steels for re-rolling.

Hot-rolled steel products with specific

qualities uniquely designed by SSI.

For example, HRC Thin Gauge, specially

thin flat steels with thickness less than

1.2 mm used for small diameter pipes, and Checkered Plate.

Innovated steel products and services

specially developed and innovated to

deliver the value-added to customers

beyond customers’ expectation.

Gas cylinder

Chassis & Components

Applications

Compressor

Small Diameter pipe

Water Tube pipe

Checkered Plate

Roof Structure

SSI’s Premium Value Products (PVPs)

Steel Making Facilities D

Sinter Plant

Sinter plant transforms iron ore fines

into sinter to be used directly in the

blast furnace

The plant is 4.2m wide with a 336m²

suction area

Capacity of the plant is 4.1 mtpa

The facility also helps recycle waste

materials from the blast furnace

A

6

B

Bloom caster

(currently not operational)

Planned revamping as billet

caster with additional casting

capacity of 1.8 mtpa

A

C

Slabs

D

Slab casters (operational)

Capacity of 3.6 mtpa

1 2

RH degassing

3

One piece welded

vessel

Dehydrogenisation

Decarburisation

Alloying system

Tank degassing

Ladle metallurgy furnace

4

Dehydrogenisation

Decarburisation

Desulphurisation

Alloying system

Wire feeding

5

EMS or argon stirring

Powder injection

Wire feeding

Alloying system

7

6

Argon stirring/injection Finishing processes

8

Blast Furnace

SSI UK’s blast furnace is the second

largest in Europe, producing liquid iron

at 1,500°C, with a nameplate capacity of

4.2 mtpa when using PCI technology

The main fuel used is coke

70% comes from the coke ovens,

the rest is purchased from 3rd parties

With PCI technology, coke can be

partially replaced by PCI coal.

C

Coke Oven Facilities B

Coke oven facilities transforms coking

coal into coke to be used directly in the

blast furnace

SSI UK has two coke oven facilities

with a combined capacity of 1.8 mtpa

Redcar (1.2 mtpa)

South Bank (0.6 mtpa)

Iron Ore

Coking Coal

Top lance

Porous plug

Lime spar injection

Wire feeding

Casting Facilities

E

E

Slab casting

The casting facilities consist of 2

twin strand slab casters with a

combined capacity of ~3.6 mtpa.

Twin tundishes and 9.8m

radius

Liquid steel is delivered to cast

finish product (Slab)

Slab thickness of 225mm or

250mm and 1,000-2,030mm wide

Slow cooling (dehydrogenisation)

Longitudinal slab slitting

Sulphur printing/etching

Inspection

Androfer machine scarfing

Basic oxygen steel 2

3

Primary Steelmaking

Desulphurisation plant 1

3 x 250 tonne converters

Typical charge

225 tons liquid iron and 45 tons scrap

Secondary Steelmaking

4

5

6

7

8

Co-injection of manganese and calcium

oxyde using nitrogen

Slag coagulent

Mechanical slag skimming

Desulphurisation to 0.001%S

SSI UK’s Iron and Steel Making Process (Slabs)

7

3–4 hours of

continuous heating of

slabs to achieve a

rolling temperature of

ca.1,250-1,300°C

Process capacity of

275 tons per hour

Reheating

Furnace

High pressure water

spray de-scaling unit

removing oxide from

slab, formed during

reheating

High Pressure

De-Scaling Box

Temperature

reduction from

1,000°C to

approximately 650°C,

to maintain desired

uniform metallurgical

properties

Laminar Flow

(Cooling Bed)

Steel bar coiling at

nearly constant

temperature before

entering the finishing

mill

Coil Box and

Crop Shear

Reduction of bars’

thickness to meet

customer

specifications by 7

finishing stands

Finishing Mill Reversing

Roughing Mill

Slab machining by

roughing mill and

vertical edger to

obtain desired

thickness and width

Output then referred

as steel bar

The finished strip

is then coiled in a

down-coiler, bound

with a strapping

band, weighted,

and given a

product number

Quality control

Storage for cooling

Down-Coiler

Slab

Input HRC

Output

Skinpass Machine gives the product a

fine surface finish, using rollers to press

the strip as it passes. It is also used to

cut the sheet into sections according to

the customer's weight specifications.

Shearing Line Machine is designed

to cut large sections of steel into

smaller coils as specified by the

customer, or to reshape these coils.

SSI’s Hot Rolling Process (HRC)

8

Pickled & Oiled

HRC Packing

Steel Packing Hard Plastic Packing Paper Packing

HRC

Input HRC- P/O

Output

Side trimmer ensures the

exact width of steel strip as

required by customers. The

upper and lower sides of

the strip are then inspected

for quality.

Side Trimmer

Steel strip with a

thickness of 1.20- 4.00

mm must be smoothed

out with a tension leveler

before pickling.

Tension Leveller

Rust on steel strip is removed by

pickling in 4 tanks of hydrochloric

acid, from the weakest to the

strongest. Used acid is treated in

an acid regeneration plant; whilst,

the acidic fumes released from

the process are absorbed by

water in a scrubber.

Then, pickled steel strip is

washed in 5 rinsing tanks. The

water from the fifth tank is sent

back to be used in the first tank,

and is later treated and recycled.

Pickling & Rinsing Tank Flattener & Stitcher

Stitcher welds the steel

strip of one coil to the coil

following. The strip's edge

is sheared in a concave

pattern. Coiled steel of over

4 mm in thickness cannot

be stitched or notched, and

thus must be processed

one coil at a time.

Having been rinsed,

trimmed, and inspected,

the steel strip is then oiled

to guard against corrosion.

A film of oil with a negative

charge is sprayed over the

steel, which has a positive

charge. This electrostatic

method ensures firm

adhesion of the oil and a

complete, consistent

coating of the steel's

surface.

Electrostatic Oiler

SSI’s Pickling and Oiling Process (HRC-P/O)

9

HRC

Input CRC

Output

Entry looper

Cooler Oven Coater

Pre cleaning Welder Pay off

reel

Delivery looper

Delivery shear

Tension

reel

Pre treatment section

Cleaning Pickling Plating

section

Post treatment

section

Batch-type annealing

furnaces

Temper

mill

CPCM (Coupled Pickle

and Cold Mill) Electrolytic cleaning line

Cold Rolling Process

Electro-Galvanizing Process

CRC

Input

Electro-

galvanized

Steel Sheet

Output

TCRSS’s Cold Rolling Process (CRC) &

TCS’s Electro-Galvanizing Process (EG)

10

Steel Industry Overview & Production Process

ASEAN Steel Market & Key Growth Drivers

SSI Group Background

Performance & Financial Results

Agenda

11

ASEAN – GDP vs ASU per Capita (2012)

Source: SSI

kg/head USD/head

90 kg/head 3,697 USD/head

ASEAN – GDP (Trillion USD, Current Price)

Source: www.economywatch.com for 1995 – 2018, and SSI’s estimate for 2019 – 2030 based

on 2013 – 2018 forecasted by economy watch

According to World Bank, ASEAN population was

approx. 607 million in 2010; and expected to

increase to approx. 678 million in 2020 and approx.

740 million in 2030 respectively.

Economy watch estimated ASEAN GDP’s growth

from USD 2.3 trillion in 2012 to approx. USD 3.8

trillion in 2018, or 8.23% CAGR.

In year 2012, ASEAN’s GDP per capita was

approx. USD 3,697 per head with ASU per capita

approx. 90 kg per head.

Source : World Bank

ASEAN – Population (million)

529

607 678

740 12.0

10.0

8.0

6.0

4.0

2.0

ASEAN – GDP and ASU per Capita

12

Dynamic Relationship between GDP per Capita and

Steel Use per Capita Developed Countries vs ASEAN

The coming “Rapid Rise” of ASEAN Steel Consumption

Source : IMF, World Steel Association, Economic Watch

World Steel suggested the relationship between GDP per

capita and Steel Use per capita.

During phase 1 - 3, ASU per capita will rise gradually from

a low base when an economy begins to take off, and much

more rapidly when the economic growth gains momentum.

Then, after GDP per capita reach approx. USD 20,000 per

head, ASU per capita will start to decline in phase 4 - 5.

In 2012, according to GDP and ASU per capita, ASEAN and

Thailand still reside in the early stage of rapid rise (phase 2).

Assuming GDP growth following economy watch’s forecast

in previous slide; Thailand and ASEAN will still be in the

middle stage of rapid rise (phase 2) in year 2020 and 2030

respectively.

China

Japan

South Korea

India

Singapore

Malaysia

ThailandVietnam

Indonesia

Philippines

World

UK

Canada

United StateBRIC

Australia

Nigeria

Turkey

Mexico

Russia

Brazil

0

200

400

600

800

1000

1200

0 5 10 15 20 25 30 35 40 45 50

Ste

el co

nsu

mp

tio

n p

er

cap

ita

(kg

/cap

ita

)

GDP per capita (thousand USD)

ASEAN

Myanmar

Source: SSI’s calculation

Source: World Steel Association

Intensity of Steel Use

Target Customers

(Geographically)

Thailand Thailand Indonesia Malaysia Philippine

Key Products

Slab

HRC – Gen Use

HRC – P/O

CRC

Capacity (mtpa)

13

Remark : CRC capacity relates to SSI’s JV, Thai Cold Rolled Steel Sheet Plc.

Source : Company websites and Annual reports

Leading Market Position in ASEAN

1.2

4.0

3.6

Thailand

& Europe

Slab

HRC

CRC

Integration with UK operation provides SSI with a leading market position as an

integrated producer in ASEAN

1 2 3 4 5 6

1 2 3 4 5 6

1 2 3 4 5 6

14

Thailand Flat Steel Demand: the biggest and most sophisticated in ASEAN

Application Midstream & Downstream Upstream (Iron & Steel Making)

Checkered

4.4

6.2 0.8

0.4

HRC P/O

Hot Rolling

2.5 3.1

5.6 MT

Cold Rolling

CRC

1.2 MT

Coating

Coated

Local (MT)

Import (MT)

2012 Domestic

Demand

10.6 MT

Total Flat

Products

(excl.plate)

Slab

Thailand Flat Steel Consumption: largest and most sophisticated in ASEAN, approximately net 6.2 mtpa or 58% is served by import.

1.1 2.7

ASEAN’s industrialisation and urbanisation has driven and will drive consistent high growth.

LONG: CAGR 98-11

6.8%

FLAT: CAGR 98-11

9.2%

Apparent Steel Consumption High-grade Flat Steel Products Consumption

ASEAN Steel Consumption has grown constantly at 6.2% and is now at 58.8 million tons per annum.

0

20

40

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

0

10

20

30

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

47% 54%

53% 46%

1998 2011

Long

Flat

3.8 MT

High growth, but served by import due to lack of raw material availability regionally.

2012 consumption growth of 12% was fulfilled by imports

which recorded an all-time high of 41 million tons or

increase 20% YoY.

43.5 46.2 42.0 48.6 52.4 58.8

2007 2008 2009 2010 2011 2012

Million Tons

Source : WSA, ISIT, SEASI, Federation of Thai Industry

15

6.61 9.39 9.87 11.26

4.14

4.62 4.93 5.35

2009 2010 2011 2012

Long

Flat

14.01

10.75

Total Consumption

CAGR 2009-2012 = +15.6%

Unit: Million MT

Apparent Steel Consumption

Car and HA/EA Production (’000 units)

14.80 16.61

Apparent Flat Steel Consumption

Source : ISIT

0.35 0.52 0.54 0.60 3.30 4.32 4.53 5.12 1.03

1.69 1.65 1.93

1.96

2.96 3.12 3.49 6.61

9.39 9.87 11.26

2009 2010 2011 2012

Coated

CR Sheet

HR Sheet

HR Plate

Unit: Million MT

Source : ISIT

Total Steel Consumption

CAGR 2009-2012 = +19.4%

Source: Thailand Automotive Institute and Bank of Thailand

-

500

1,000

1,500

2,000

2,500

3,000

Car

Car

-

1,000

2,000

3,000

4,000

5,000

6,000

Fridge

Fridge

-

2,000

4,000

6,000

8,000

10,000

12,000

A/C

A/C

06 07 08 09 10 11 12 9M/13 06 07 08 09 10 11 12 9M/13 06 07 08 09 10 11 12 9M/13

CAGR 2006-2012 = +12.9% CAGR 2006-2012 = +7.7% CAGR 2006-2012 = +7.9%

Thailand Apparent Steel Consumption

Opportunities in Transportation Projects

1. BTS 10 Routes

2. High-speed Train & Double

Rail Tracks

3. Motorway Network

4. Water Transportation:

Laem Chabang Port

Pakbara Deep Sea Port

5. Dawei Deep Sea Port

6. Airport:

Suvarnabhumi

Don Muang

Road 19%

Water 2%

Air 0%

Railways 78%

Customs

1%

Breakdown of 2 Trillion Investment Project:

Source: Ministry of Transport via ISIT

16

Automotive 16%

Machinery & Industrial

13%

Appliance 12%

Packaging 5%

Construction

54%

Domestic Steel Demand Breakdown Opportunities in Construction Projects

Infrastructure

Development

Residential and

Commercial

Building

Industrial

Factories

• Mass Transit Development

• Irrigation Development

• New Condominium and Housing

along Subway and Skytrain Lines

• Urbanisation of cities other than

Bangkok

• New Investment from Machinery

and Appliance Sectors

• Factory Relocation from Japan

GDI/GDP Ratio

43.2%

20.4%

32.7%

27.1%

30.2%

22.0%

28.0%

Source: Fiscal Policy Office

Unit: % of GDP

Source: ISIT

Key Growth Driver 1: Construction & Infrastructure

17

Automotive & Parts

Electrical & Electronics

Food Production Hub

(Packing)

Machinery and Metal

Working Production

Base

Manufacturing &

Assembly Hub

Electrical & Electronics

Thailand is center of ASEAN production

hub in electrical appliances

Food Production Hub

(Packing)

Thailand is center of world food

factory. Canned food output has been

grown up slightly. Mechanisation of

agricultural process will increase more

output in canned food. Tourism Hub

Potential AEC-impacted sectors SSI targets high grade market, though impacted, growth is promising

Automotive & Parts

Thailand is center of ASEAN

production hub for automobiles.

Remark :* White goods include fan, rice cooker, refrigerator, air conditioner and compressor

Source : Thailand Automotive Institute , FTI, and ISIT

0

10

20

30

40

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

White goods (MillionUnits)

CAGR 02-12

5.1%

0

200

400

600

800

1000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Canned Seafood (Unit : '000 tons)

Canned fruit (Unit : '000 tons)

CAGR 02-12

4.9%

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Passenger car ('000 units)

Commercial car ('000 units)CAGR 02-12

15.4%

Key Growth Driver 2: Opportunities towards AEC

7,062 8,262

10,779

12,492 12,729 12,150 12,185

13,736 14,963

17,787 18,660

20,903

23,236

35.9%

38.6%

30.5%

49.9%

0%

10%

20%

30%

40%

50%

60%

1992 1994 1996 1998 1999 2000 2001 2002 2004 2006 2007 2009 2010

0

5,000

10,000

15,000

20,000

25,000

Avg Household Income

% of Households with Monthly Income >THB 15,000 THB/month

Source: National Statistical Office National Information Center

Proliferation of Thailand Middle-Income

3,592 5,678 10,304

51,162

2,614 1,528 835

41,703

934 1,446 3,745

5,569 9,284

14,567

57,134

4,191 2,474 1,218

43,537

1,583 2,354

5,593

2012 GDP per capita Estimates (USD) 2018 GDP per capita Estimates (USD)

Rising ASEAN GDP per Capita

Source: International Monetary Fund and Nikkei News

7.6% 8.5% 5.9% 1.9% 8.2% 8.4% 6.5% 0.7% 9.2% 8.5% 6.9% CAGR

12-18

Rapidly growing ASEAN’s middle-class population

is driving economic growth.

BCG predicts that Indonesia’s middle-class

population will roughly double from the current

level to 117.5 million people by 2020.

Euromonitor predicts that Vietnam’s middle-class

will account for nearly half of the population by

2020.

Increasing consumption among the middle class

will fuel sales of HA/EA and automobiles.

Average household income increased from

7,062 THB/month in 1992 to 23,236 THB/month

in 2010, or CAGR approx. 6.8%.

Households with monthly income above THB

15,000 has reached 49.9% in 2010.

18

Key Growth Driver 3: Rising GDP Driven by Middle-Income

20 11 9

7

33 17

16

20 44.8

54.5

60.9

65.5

26.4% 29.4% 31.1%

44.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1990 2000 2010

0

10

20

30

40

50

60

70

Population Urbanisation Rate*

Source: National Statistical Office National Information Center

Population

(Million) % Urban

population

19

During 1980 – 2010, Thailand population grew approx. 1.3% from 44.8 million to 65.5 million; whilst the percentage of people living in

urban area has increased from 26.4% in 1980 to 44.1% in 2010.

Impressive expansion in regional branches has been clearly seen during 2008-2012 :

HomePro, the leader of Home Center has remarkably expanded its provincial branches at 16.2% CAGR.

Siam Global House, the second leader of Home Center, even expanded more aggressively than HomePro at 30.0% CAGR.

Robinson Department Store has consistently expanded its provincial branches at 14.6% CAGR.

Makro, recently acquired by CPALL, showed its regional expansion almost twice as much as Greater Bangkok.

Growing Urbanisation Expansion of Department Stores

20 HomePro

Siam

Global

House

Robinson

33 53

CAGR

5.1%

Greater

Bangkok

11 19 30

Numbers in circle show number of home centers/ department stores/ retail stores

CAGR = Compound Annual Growth Rate during 2008 - 2012

Regional TOTAL

CAGR

18.0%

CAGR

12.6%

7 20

CAGR

30.0%

CAGR

5.7%

CAGR

14.6%

CAGR

10.7%

CAGR

30.0%

* Urbanisation rate = Population in Urban Area / Total Population

44 34 10 13 Makro 56 69

CAGR

13.3% CAGR

11.9% CAGR

6.8%

Key Growth Driver 4: Opportunities in Thailand Urbanisation

20

Steel Industry Overview & Production Process

ASEAN Steel Market & Key Growth Drivers

SSI Group Background

Performance & Financial Results

Agenda

UK Thailand

21

1) dwt = Deadweight ton 2) mtpa = million tons per annum 3) 50% ownership by SSI UK 4) Exchange rate used for translation = 30 THB/USD and 1.55 USD/GBP

Slab

3.6 mtpa

N/A

Sahaviriya Steel

Industries UK Ltd.

100%

Cold-rolled steel

1.2 mtpa2)

43%

Thai Cold Rolled

Steel Sheet Plc.

35%

Electro-galvanized

0.24 mtpa2)

100%

Thai Coated Steel

Sheet Co., Ltd.

4%

Support:

deep-sea port

100,000 dwt1),

14 mt throughput

N/A

Prachuap Port

Co., Ltd.

51%

Hot-rolled steel

(pickled and oiled)

HotCoil

4 mtpa2)

55%

Sahaviriya Steel

Industries Plc.

CleanStrip®

1 mtpa2)

Parent company

63%

Finished products

out-bound

Raw materials

in-bound

Support:

deep-sea port

170,000 dwt1),

12 mt throughput

N/A

Redcar Bulk

Terminal Limited

50%3)

Capacity

Domestic capacity share

Product range

Legal entity

SSI Ownership

Total Revenue in 2012 29 MUSD4) 1,125 MUSD 12 MUSD4) 2,020 MUSD4) 489 MUSD4) 95 MUSD4)

Integrate World Class Steel Businesses

Innovate Premium Value Products

Long-term

Strategies

Coated

Steel Sheet

Cold Rolled

Coil

Hot Rolled

Coil

Deep-Sea

Port

Iron &Steel

Making

Deep-Sea

Port

100% 51% 3.7% 35.19%

99.99%

50%

Engineering & Maintenance Service

ASEAN’s Largest Flat Steel Producer

2013

22

• Started its operation with Slab

capacity of 3.6 mtpa

• First slab produced in April

• SSI was established by Sahaviriya Group, and

incorporated as a public company

• Became the first and only conventional

standalone Hot Strip Mill in Thailand

1990

• Invested in TCRSS

• Established PPC to operate deep sea

port in Prachuap Khirikhan

• Started its operation with HRC

capacity of 1.8 mmtpa

• Became a listed-company on the SET

1994 1995

• Expanded its HRC

capacity to 2.4 mtpa

1997

• Invested in TCS to extend

further downstream

• Set up WCE to provide engineering

& maintenance services among the

group of companies

1999

• Acquired TCP’s iron and steel making facilities

through its overseas subsidiary, SSI UK

• Began SSI UK restart project to refurbish its

facilities

2011

2012

• Installed two shore

cranes (100 tons each)

2004 2012

• Reached 28 mt of accumulative

HRC production, the first steel

producer in Thailand, in February

• Expanded its HRC capacity

to 4.0 mtpa, with P/O

capacity of 1.0 mtpa

1994

1994

2012

November

2013

“Coastal Mill” #1 SSI and

its downstream mills are

integrated with the deep

sea port

Perfect strategic location

for steel business

Bang Saphan 400 km

south of Bangkok

Upstream facility with the

deep sea port in Northeast

UK

Perfect strategic location

for steel business

Teesside 400 km north of

London

“Coastal Mill” #1

“Coastal Mill” #2

• Reached 2 mt of accumulative

Slab production in January

• Started up Pulverised Coal

Injection (PCI) project in July

SSI’s Key Milestones

Integrate World Class Steel Businesses

Iron and Steel Making Business in

Northeast UK

HRC Business and downstream

facilities in Thailand

Innovate Premium Value Products

Focus to innovate high value-added

products with higher margin – account

for 37% of total sales in year 2012

23

Strong Market Position

The largest flat steel producer in ASEAN

Location Competitive Advantage

UK Facilities:

Coastal integrated steel plant with largest deep-water terminal on east

coast UK

Ample high-quality raw material supply, shorter shipping distance and

delivery time = lower overall cost

Competitive distance to potential high-end markets

Thailand Facilities

High growth in ASEAN market, particularly for high-grade flat products

Coastal mill with its own deep-sea port, the best strategic location for fully-

integrated steel business

Shorter distance & lead-time to customers

Risk Diversifying

UK and Thailand operations are linked competitively by utilising large dry-

bulk vessels, but each serving its own natural market footprint – resulting

in geographical diversification for SSI Group as a whole

Synergies

Multiple synergy opportunities identified

Strategies Core Strengths

SSI’s Strategies and Core Strengths

SV Group**

36%

Vanomet

21%

Others 35%

JFE 4%

MISI 4%

0%

0%

Stock Code: SSI

1st Day Trading: 8 September 1994

No. of Listed Shares: 32,166,258,124 Shares

Registered Capital: THB 39,867,778,559

Paid-up Capital: THB 32,166,258,124

Par Value: THB 1.00

Foreign Limit: 49%

Foreign available: 18.36%

Market Cap: 11,579 MB or 373 MUSD***

Free Float: 48.45%

Share Information

*** Exchange rate used for translation = 31 THB/USD

24

Shareholding

Structure

(as of 22 Mar 13)

**SV Group includes Sahaviriya Group,

Sahaviriya Inter Steel Holdings, and

Viriyaprapaikit Family

Bang Saphan, Prachuap

Khirikhan Province,

Thailand

Sahaviriya Steel Industries Public Company Limited (SSI)

Since its establishment on 13 March 1990, SSI

has become Thailand’s first manufacturer of

hot-rolled steel sheet in coils (HRC) and

Southeast Asia’s largest fully-integrated flat

steel producer with a nominal production

capacity of HRC 4.0 mtpa and HRC pickled and

oiled 1.0 mpta.

SSI’s Thailand operations are all located in the

same industrial complex at Bangsaphan district,

Prachuap Khirikhan province in southwest

Thailand.

The whole complex is integrated with Thailand’s

deepest private sea port operated by 51%-

owned PPC giving the entire operation a

competitive advantage in transportation cost.

* mtpa = million tons per year

“SSI is South East Asia’s largest producer of HRC.”

HRC Business

25

Iron and Steel Making Business

Sahaviriya Steel Industries UK Limited (SSI UK)

On March 24, 2011, SSI signed a 469 MUSD agreement to purchase

the fully-integrated iron and steel making facility at Teesside in

northeast United Kingdom from Tata Steel Europe (asset deal). Since

then, SSI UK, a wholly-owned subsidiary of SSI, has undergone a

successful turnaround.

In April 2012, the blast furnace was relit after a 12 month re-vamp,

producing the first slab 3 days later.

In February 2013, SSI UK reached 2 million tons of cumulative

production volume.

On 9 July 2013, SSI UK successfully operated with Pulverised Coal

Injection (PCI) technology, after an investment of USD 65 million

(excluding VAT). Q3/13 average PCI injection rate was 66 kg/thm.

Redcar Bulk Terminal Limited (“RBT”), a 50%-owned subsidiary of SSI

UK, owns the deepest port on the east coast of UK with a 17 metre

draft capable of handling vessel up to 170,000 dwt and 12 million tons

throughput.

RBT manages and operates the port, handling raw material imports of

iron ore and coal from Australia, Brazil, South Africa, the US, etc.

RBT operates 24/7 all year round and is equipped with two wharf

unloaders fitted with large grabs:

The two unloaders have capacity of 2,000 ton/hour and 3,000

ton/hour respectively.

10 million tons (overall capacity of 12 million tons) ore equivalent

discharge per annum provide ample spare capacity even at 4

million tons of slab production

SSI UK’s Milestones

SSI UK’s Deep-sea Port Facilities

“The strong asset base with widely versatile equipment and a very

skilled workforce guarantee a superior product quality that is needed

for specialised end-markets i.e. automotive grade steel.”

B

B

A C

D

PD Ports

G

Redcar

Coke Oven

F

Southbank

Coke Oven

Blast

Furnace

Sinter

Plant

Rail Network

Basic Oxygen Steel (BOS) and

Continuous Casting Facilities

Redcar Bulk

Terminal

E

SSI UK

26

Deep-Sea Port Business

& Engineering and Maintenance Services Business

Prachuap Port Company Limited (PPC)

PPC, a 51%-owned subsidiary of SSI,

located ~410kms from Bangkok, operates

the deepest private sea port facilities in

Thailand.

The main berth started operations in

February 1994

Two additional berths have been added

to increase capacity

Its three berths serve to unload raw

materials and semi-finished steel products

and load finished steel products

manufactured in the district of Bangsaphan,

Prachuap Khirikhan Province

In April 2012, two 100-ton mobile shore

cranes were commissioned enabling to

handle Panamax-class vessels

WCE, a wholly-owned subsidiary of SSI, was

established in 1999 to provide services in:

Maintenance Management

Machinery Solution

Steel Structure and Fabrication

Engineering Procurement and

Construction (EPC) Project

4 Workshop Infrastructures: Total Area

12,500 m2

West Coast Engineering Company Limited (WCE)

TIS 14001 : ISO 14001

TIS 18001 : ISO 180001

National Skill Standards

ISO / IEC 17025 : 2005

ASME U, S, R, PP STAMP

SMEs Award

Labor Relations and Labor Welfare at

national level for 6 consecutive years

Achieved the award from launching Zero

Accident Campaign

Innovation Award of “CNC Engraving

Machine” from NRCT

Certificates & Awards Overview

Overview

C3-C5 Length 442 m

Draft 8 m

20,000 dwt A1-A2

Length 245 m

Draft 8-12 m

100,000 dwt

C1-C2 Length 450 m

Draft 14 m

80,000 dwt

D Length 250 m

Draft 8 m

2,200 dwt

Berth Site Overview

Bonded warehouse (112,000m2)

Transit Shed (20,800m2) with

warehouse of 1,000m2

Open storage yard for

General cargo (74,000 m2)

Bulk cargo (37,000 m2)

Container cargo (300 teus)

Marshalling Yard (~640,000 m2)

Custom office

Crane and forklift capacity

2 shore cranes of 100 tons capacity

2 gantry cranes of 20 tons capacity

2 gantry cranes of 30 tons capacity

3 tug boats of 3,100 BHP

Pilot and navigation signal aids

Storage & Handling Capacity

Han

dlin

g c

ap

acit

y

Sto

rag

e c

ap

acit

y B1-B2

Length 450 m

Draft 15 m

20,000 dwt

Thai Coated Steel Sheet Company Limited (TCS)

Thai Cold Rolled Steel Sheet Public Company Limited (TCRSS)

27

Cold Rolled Coil & Coated Steel Sheet Business

TCRSS is the first cold-rolled steel mill in Thailand.

The company is a joint venture between SSI, JFE

Steel (Japanese steel producer) and Marubeni-

Itochu (Japanese trading house)

Production started in June 1997

Capacity is 1.2 million tons with over 800

employees

TCRSS leverages on a combined pickling and

tandem cold mill, developed by NKK, including an

electrolytic cleaning process and hydrogen

annealing.

Current facilities provide a wide range of products,

from 0.18mm to 3.0mm in thickness and 600mm-

1,550mm in width.

TCS is the first company in Thailand to produce

electro-galvanized steel sheet in coils

Founded in 1992 as a joint venture between SSI

and three Japanese companies: NKK Corporation,

Marubeni Corporation and Itochu Corporation

TCS's plant began production in February 1994

Current capacity is 240,000 tons per year

The input material is CRC

SSI

35%

JFE Steel

Corporation

35%

Marubeni

Itoshu Steel

25%

Other

5%

Shareholding Structure

SSI 4%

Shareholding Structure

Marubeni

Itochu Steel

15%

JFE Steel

Corporation

81%

28

Steel Industry Overview & Production Process

ASEAN Steel Market & Key Growth Drivers

SSI Group Background

Performance & Financial Results

Agenda

+2,230

+220 +71 +86

-1,424

-2,500

-2,000

-1,500

-1,000

-500

-

500

1,000

1,500

2,000

2,500

-4,032

(5,166)

1,273 2,446

(981)

(15,903) (12,661)

(4,145)

(3,878)

3,026 4,097 1,405

(10,615) (8,586)

(1,424)

29

RE

VE

NU

E

EB

ITD

A

NE

T P

RO

FIT

% by Business unit in 9M/13

HRC Iron & Steel

Port Engineering

EBITDA

9M/13

Related

transaction

HRC

Port Engineering

Net loss

9M/13

Related

transaction

Non-controlling

interest

Unit: MB

Note: 1) EBITDA = Net Profit + Tax Expense + Depreciation & Amortisation + Interest Expenses

2) TCRSS is accounted for under Equity Method and not included in Group EBITDA

2008 2009 2010 2011 2012 9M12 9M13

Iron & Steel

27,757 33,416

48,090 47,975

60,604

43,005 49,287

2008 2009 2010 2011 2012 9M12 9M13

2008 2009 2010 2011 2012 9M12 9M13

HRC 74%

Iron & Steel 25%

Port 0.3%

Engineering 0.7%

+395

-4,533

+124 +37 +39 +52

-4,145

-5,000

-4,000

-3,000

-2,000

-1,000

-

1,000

Consolidated Performance

0.90 0.93

0.98

0.84

0.67

0.60

2008 2009 2010 2011 2012

1.41 1.17

0.95

1.82

3.81 4.15

2008 2009 2010 2011 2012

30

Current Ratio slightly dropped from 0.67x at year end 2012 to 0.60x mostly resulted from a decrease in inventories,

especially raw material and raw material-in-transit.

During 9M/13, the Company received proceeds of 2,397.1 MB from offering 3,525.1 million new shares, according to the

capital increase plan. However, due to losses from operations, mainly from SSI UK, Equity dropped by 10% comparing

to at year end 2012; whilst Interest-Bearing Debt/Equity increased to 4.15x comparing to 3.81x at year end 2012.

Consolidated Working Capital (MB) Total Assets and Liabilities (MB)

Interest-Bearing Debt/Equity (x) Current Ratio (x)

Sep-13

Sep-13

Sep-13

26,428 16,783

25,154 17,755

24,713 19,875

54,921

24,948

55,491

13,611

55,297

12,301

15,358 25,003

17,619 25,018

17,779 22,617

31,443

61,416

33,029

74,909

26,842

69,838

2008 2009 2010 2011 2012 Sep-13

Non Current Assets Current Assets Equities Total Liabilities

14,323 12,933 12,571

22,839

25,309

21,614

11,450

14,169 14,205

25,178

21,615

16,817

2008 2009 2010 2011 2012

S/T Loans Inventories

Consolidated Financial Position

31 Note: *PVPs stand for Premium Value Products

1,022

1,749

2,241

1,571

2,184

1,537 1,709

1,026

1,867

2,233

1,564

2,096

1,494

1,723

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

2008 2009 2010 2011 2012 9M12 9M13

Sale Volume (k tons) Production (k tons)

80.7

62.0 67.3

83.5 79.4 80.8 76.7

26%

47% 56%

39%

52% 50% 57%

-80%0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012 9M12 9M13

Conversion Cost (USD/ton) Utilisation Rate (%)

800

551

663

769 716 726 697

17.1%

5.2%

17.8% 16.8%

13.0% 13.5%

17.5%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

200

400

600

800

1,000

2008 2009 2010 2011 2012 9M12 9M13

Avg. Selling Prices HRC Rolling Margin

1,022

1,749

2,241

1,571

2,184

1,537 1,709

38% 39% 39% 39% 37% 39%

34%

62%

61%

61%

61% 63%

61% 66%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012 9M12 9M13

PVPs Non-PVPs HRC Sales Volume (k tons)

HRC Business Performance

PVPs 52%

3-Year Plan

Commercial

Grade

48%

PVPs 34%

9M13

Commercial

Grade

66%

32

PVPs sales increased from 153 k tons in Q2/13 to 174 k tons, or grew by 14% QoQ. Whilst PVPs

proportion in total sales dropped from 38% in Q2/13 to 29% in Q3/13, as sales of commercial grade

increased in a larger proportion following a larger share in domestic HRC market in Q3/13.

In Q3/13, part of PVPs sales included commercial lot of HRC produced from SSI UK’s slabs to

customers in automotive industries, and expected to gradually increase in the future.

PVPs

(k tons) 116 211 167 221 203 246 153 174

PVPs

(%) 38% 43% 39% 36% 31% 35% 38% 29%

PVPs

(k tons) 599 573

PVPs

(%) 39% 34%

8% 10% 11% 7% 4% 8% 6% 6% 9% 7%

0% 7% 2% 7%

9% 6% 8% 4%

6% 6% 13%

11% 12% 11%

8% 9% 12%

6%

12% 9%

16% 15%

14% 10% 11%

11% 12%

13%

13% 12%

62% 57% 61% 64% 69% 65% 62%

71% 61%

66%

Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M12 9M13

Commercial

Unique

High-Grade

IVP

IVP (High-Grade)

HRC Business: Premium Value Products Contribution

33

Shares of total import continuingly increased since 2009 onwards; however, other alloy steel import declined in 9M/13

as a result of AD & safeguard measures.

In Q3/13, Import of carbon steel share in Thai market was down from 40% to 21% mostly resulted from shrinking

domestic steel demand and Baht depreciation; whilst other alloy steel import remained at approx.15%.

In term of volume, carbon steel import sharply declined from 727 k tons in Q2/13 to 350 k tons in Q3/13 (-52% QoQ);

whilst other alloy steel import decreased from 282tons in Q2/13 to 255 k tons in Q3/13 (-10% QoQ).

Quarterly Yearly

53%

34% 44%

51% 60% 64%

20%

40%

37% 27%

32% 31%

27% 26% 19% 22%

8% 6%

2008 2009 2010 2011 2012 9M/13

Imports SSI Other Local Suppliers

20% 16%

30%

40%

21%

19% 19%

16%

17%

17%

22% 31%

19%

15%

15%

3% 0% 0.1%

6% 12%

37% 33% 35%

22%

35%

Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

SSI

Other LocalSupplies

Import - Carbonsteels

Import - Carbonsteels P&O

Import - Other(Alloy steel)

HRC Domestic Market Share

Products Country of Origin Measures Duty Rate Status1)

Effective Period

HRC China, Malaysia Anti-dumping 30.91% - 42.51% Final 12 Aug 11 – 11 Aug 16

HRC Japan, South Africa,

Russia, Kazakhstan,

India, South Korea,

Taiwan, Venezuela,

Argentina, Ukraine,

Algeria, Indonesia,

Slovakia, Romania

Anti-dumping 0% - 128.11% Final 23 May 09 – 22 May 142)

HRC

(with Boron

added)

China Anti-dumping 14.28% - 19.47% Final 26 Dec 12 – 25 Dec 17

HRC (with other

elements added) All Safeguard 42.95% - 44.20% Final 15 Sep 13 – 26 Feb 16

CRC China, Vietnam, Taiwan Anti-dumping 8.76% - 11.76% Emergency3) 22 May 13 – 10 Dec 13

34

Note: 1) According to Thai regulations, there are two stages of AD and Safeguard measures, provisional and final. After the provisional

measure granted, the Committee will further collect and verify relevant data to determine the final measure, if applicable.

However, the Committee can also impose so-called “Emergency Measure” before provisional measure, if the Anti-dumping and

Safeguard Committee has reasons to believe that such AD or safeguard measure are likely to be imposed in its final

determination. 2) This AD measure will be expiring in May 2014; however, it is expected that the measure would likely be extended for another five

years expiring in 2019. 3) The emergency AD measure has been announced to collect collateral of import duty from importers in form of bank guarantee,

and now the Committee is collecting and verifying relevant data to conclude its final determination. The final measure is

expected to be concluded by February 2014.

Current Status of Anti-dumping & Safeguard Measures

35

Sahaviriya Steel Industries PLC

THANK YOU

28/1 Prapawit Bldg., 2nd - 3rd Floor, Surasak Road

Silom, Bangrak, Bangkok 10500 Thailand

Tel: +66 (0) 2238 3063-82

Fax: +66 (0) 2236 8892

Website: http://www.ssi-steel.com

Email: ir@ssi-steel.com

Corporate Finance and Investor Relations

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