JSW Steel Limited Investor Presentation March 2017

JSW Steel Limited Investor Presentation March 2017

Agenda Overview Value Proposition Performance Overview Business Environment 2

JSW Group overview Presence across the core sectors Market cap of listed businesses ($7,258 mn^) JSW Steel*: India s leading integrated steel producer (Steel making capacity: 18 MTPA) JSW Energy*: Engaged across the value chain of power business (Operational plants capacity: 4,531 MW) JSW Infrastructure: Engaged in development and operations of ports (Operational capacity: 45 MTPA) JSW Energy 1,469 JSW Steel 5,789 JSW Cement: Manufacturer of PSC, OPC and GGBS cement (Operational plants capacity: 6.4 MTPA) As on Dec 31, 2016 * Listed company ^ USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016) 3

JSW Steel India s leading steel manufacturer Installed capacity 18 MTPA, at strategic locations in South and West India Leading steel manufacturer in India Integrated manufacturing process Integrated steel manufacturing facilities from raw material processing plants to value-added product capacities Pan India marketing and distribution network, export presence in ~100 countries across the 5 continents Strong distribution network and export presence Technological competence Combination of state-ofthe-art steel making technologies: Corex, DRI, Blast Furnace Extensive portfolio of products HR, CR, galvanized/galvalume, pre-painted, tinplates, electrical steel (CRNO) TMT bars, wire rods, special steel bars, rounds and blooms Diversified product portfolio Global presence International presence in mining assets (Chile, US and Mozambique) and valueadded facilities (Plate and Pipe mill in US) 4

Transformational journey to market leadership FY 2002 FY 2010 FY 2016 Capacity (MTPA) 1.6 7.8 18.0 Production (MTPA) 1.3 6.0 12.6 CAGR FY 02 16: 19% Capacity increased to 18MTPA in Mar 16 CAGR FY 02 16: 18% Revenue (USD mn) EBITDA (USD mn) EBITDA/ton (1) (USD/ton) Market Cap (USD mn) 262 2,939 6,313 42 627 941 33 110 77 80 3,485 4,676 CAGR FY 02 16: 26% CAGR FY 02 16: 25% CAGR FY 02 16: 6% Significant value creation with 59x increase in market value (2) Technology Corex Corex, BF Corex, BF, DRI Adopting industry leading technologies Product Mix Flats Flats, long, special steel and value added Flat, long, special steel & high value-added auto, electrical grade Continuously expanding product canvas with focus on high-end value-added products Unrelenting progress through the economic cycles (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) 5

Combination of Organic and Inorganic growth 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 Dolvi Coke Projects Ltd. 2002 1.6 MTPA 2004 Acquired SISCOL (1) 2006 3.8 MTPA 2005 2.5 MTPA Color Coating Line Acquired EURO IKON 2007 4.8 MTPA 2009 7.8 MTPA 2008 Acquired Iron Ore mines in Chile CRM of 1.0 MTPA Acquired Plate and Pipe Mill in US Coal mining concessions in Mozambique 2016 18 MTPA (Vijayanagar and Dolvi capacity increased to 12 and 5 MTPA respectively) Won Moitra coal mine in Jharkhand 2011 Acquired 49.3% stake in Ispat 2013 14.3 MTPA post Ispat merger 2012 HSM II Capacity Expansion to 5 MTPA 2010 JSW-JFE Strategic Partnership 3.5 MTPA of HSM II Coal mining concessions in US 2017 Bought-out Praxair s (3) 74% stake in the industrial gases joint venture (4) Won 5 iron ore mines in Karnataka (111 Mn tonnes estimated resources) 2015 New CRM2 Phase 2 0.2MTPA Electrical Steel Mill 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 Continuously evaluating opportunities to deliver value enhancing growth (1) Southern Iron and Steel Company, (2) Amba River Coke Limited, (3) Praxair India Private Limited, (4) JSW Praxair Oxygen Private Limited 6

JSW JFE strategic partnership One of the largest FDI in the Indian Metals and Mining space Equity infusion by JFE of Rs. 5,410 Crores (~US$1.2 bn) (1) 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 Value creation for both the partners 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 Technology agreements Benefits to JSW Steel: Access to fast growing auto steel market Technical know-how for electrical steel manufacturing Short learning curve Application engineering New product development Benchmarking and personnel training General technical assistance agreements 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 (1) Translated at USD/ INR = 44.65 (RBI reference rate as on Mar 31, 2011) 7

Balanced corporate strategy Selective Growth Maintain market share through selective organic and inorganic growth Undertake brownfield expansions at low specific investment cost per ton Consider inorganic opportunities that are value accretive Diversification of Product Profile and Customer Base Increase proportion of high margin value-added products Diversify customer base, both within India and abroad Continue to focus on rural markets in India Backward & Forward Integration, and Focus on Resource Optimization Prudent balance sheet management Sustainability with focus on Quality, R&D and Innovation Continue to evaluate raw material assets in India and abroad to secure key raw material supplies and reduce cost of production by targeting strategic tie-ups and investments Focus on cost reduction and energy efficiency Continuously seek 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 cost efficiency and new product development 8

Strong and balanced Board comprising experts of eminence & integrity Chairperson Emeritus Executive Directors Independent Directors Nominee Directors Savitri Devi Jindal Promoter Director Sajjan Jindal Chairman & Managing Director Seshagiri Rao M.V.S Joint Managing Director & Group CFO Dr. Vinod Nowal Dy. Managing Director Jayant Acharya Director (Commercial & Marketing) Malay Mukherjee 40yrs of rich experience in mining and steel industry Kannan Vijayaraghavan, FCA and Certified Management Consultant Dr. Vijay Kelkar Ex-Finance Secretary, Ex- Secretary of MoP&G, Ex- Chairman Finance Commission Naveen Raj Singh Nominee Director of KSIIDC Hiromu Oka Nominee Director of JFE Steel Corporation Dr. Punita Kumar Sinha Former CIO at The Asia Tigers Fund Haigreve Khaitan Senior Partner at M/s. Khaitan & Co, India's one of the oldest and full service law firm Seturaman Mahalingam CA, Ex-CFO of TCS, Ex member of the Tax Administration Reform Commission Board fundamentally committed to sustainable business 9

FY16 performance on sustainability matrixes Waste gases utilization Scrap recycled Decrease in LTIFR over FY 15 98.5% 9% Recycled & reused water 943,808 MT 30% 71% 0% 3.51 Mn GJ 1897 MT Waste heat utilized Energy saved Liquid discharged from our Plants 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 10

Agenda Overview Value Proposition Performance Overview Business Environment 11

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 12

Per capita Steel Consumption in 2016 (Kg.) 1 Strong fundamentals to boost India steel demand Strong economic growth with improving fundamentals India s GDP growth continues to register stellar performance in a world seeing sluggish growth Though impacted temporarily by demonetization, economy expected to jump back with declining fiscal deficit, benign inflation, lower oil prices and easing interest rate trajectory Upturn in overall GDP growth (1) (%) 5.6% 6.6% 7.2% 7.6% 6.9% 7.4% FY13 FY14 FY15 FY16 FY17E FY18E Government reforms to boost industry growth Various measures in different sectors, easing FDI norms and initiatives such as Make in India aim at driving growth & development The finance minister in his recent budget speech, stressed on continuing with economic reforms along with increase in public investment in infrastructure and development projects. c.$60 Bn was allocated for infrastructure development in 2017-18 Potential for substantial growth in steel consumption (2)(4) o World Per Capita Consumption was ~206 Kgs in 2016 o India Per Capita Consumption was ~64 Kgs in 2016 India steel consumption to rise at a faster rate o India s steel consumption was 84 million tonnes in 2016 and is expected to rise to ~89 million tonnes in 2017 (3) With the growth in economy, JSW Steel is well positioned to be part of the India growth story 1,400 1,200 1,000 800 600 400 200 0 (200) China Russia Mexico India Brazil South Korea Japan Italy Germany Canada France 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 GDP per capita in 2016 ($) USA (1) Reserve Bank of India, (2) World Steel Association, IMF [World Economic Outlook 2016], (3) World Steel Association [Short range outlook Oct 2016], (4) Bubble size represents total steel demand of respective country 13

2 Multi-location manufacturing facilities in India Dolvi: 5 MTPA 3.5 MTPA Blast Furnace 1.6 MTPA gas based DRI 55 MW Power Plant Vasind & Tarapur (JSCPL*) 1.18 MTPA GP/GC 0.5 MTPA Colour Coating Line 30 MW Power Plant Salav^: 0.9 MTPA DRI Vijayanagar: 12 MTPA 1.7 MTPA Corex 10.4 MTPA Blast Furnaces 854 MW Power Plant Salem: 1 MTPA Kalmeshwar (JSCPL*) 0.58 MTPA GP/GC 0.19 MTPA Colour Coating Line 1 MTPA Blast Furnaces 0.5 MTPA Blooming Mill 60 MW Power Plant Leveraging locational advantage to increase market share strategically in the Southern and Western regions of India *JSW Steel Coated Products Limited ^ JSW Steel (Salav) Limited 14

3 Strategic overseas presence US coal mines JSW Steel ownership: 100% Acquisition cost: $70mn US plate and pipe mill 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 Chile iron ore mines JSW Steel ownership: 70% Acquisition cost: $252mn Started operations in FY11 Maritime concession to develop cape size port in North Caldera Mozambique coal mines JSW Steel ownership: 100% Early stage development in progress Strategic overseas presence for backward integration and value-added facilities 15

4 Diversified Product Profile Wide Offering of Flat and Long Products Slabs Color Coated HRC Billets HR Plates Blooms GC TMT CRC Wire Rods Continuously Increasing Value Added Products 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 Developing New Products, Capturing Niche Markets Automotive Grade Steel Color Coated Products Electrical Steel Enhanced focus on cold rolled, galvanised and galvanneal products for body panels of automobiles Manufactured at a new CRM2 complex 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 Commissioned Cold Rolled Non-grain Oriented (CRNO) steel plant to address domestic demand by substituting imports of high grade electrical steel Continuously enriching product mix 16

5 Domestic market leader with strong export presence 11.4% 13.4% 6.9% 3.3% 23% 15% 16% 24% 4.5% 12% India Finished Steel Consumption Growth (1) JSW Export Turnover as % of Total Penetrating further to capture growing domestic demand with unique marketing strategy unique nationwide retail network of around 600 exclusive stores (JSW Shoppes/JSW Shoppe Connect/JSW Explore) and over 6,500 non exclusive retail outlets covering c.80% of districts in India Leadership position in India (domestic sales surged by 20%YoY in FY16 vs. apparent steel demand growth of 4.5% in India) and largest exporter of steel products out of India 77% 85% 84% 76% 88% JSW Domestic Turnover as % of Total Largest exporter of steel products from India with export presence in over 100 countries FY08 FY10 FY12 FY15 FY16 Ability to re-align sales effort and shift between domestic and export market as per market conditions strategically reduced share of exports to 12% of total sales in FY16, as global steel consumption declined 3% YoY in CY15. Exports have again recovered in FY17 Flexibility to shift between domestic and international markets based on market conditions (1) Joint Plant Committee 17

6 Strong sales and marketing platform Multi-sectoral volume growth Optimizing market mix and product mix to derive maximum benefit from sector growth Leveraging export presence New product approvals for Original Equipment Manufacturers (OEMs) and automotive customers Increase in value added products leading to incremental growth in focus sectors and also facilitating import substitution Focused on Retail Sales increased reach and penetration Segmented approach to address different retail segments Metro / Urban Urban / Semiurban Semiurban / Rural JSW explore Branded, multiple product service center for steel solutions Just-in-time solution with in-house profiling 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 18

7 Focus on operational efficiency Diverse blend of technology High labour productivity Integrated operations 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: Current production of ~1,055 tons/ employee (1) In-house training programs internal faculty Continuously investing, building and enhancing competencies Integrated manufacturing facilities: From pelletisation/beneficiation to downstream value-add capabilities Dedicated port and railway siding for logistics support 100% assured power supply through captive power plants and arrangements with JSW Energy and the power grid Resulting in operational efficiency Reduced raw material costs Focus on process improvements Waste gas utilization for power generation Solid waste management and zero effluent discharge Efficient operations resulting in low conversion cost High level of integration and technological expertise leading to reduced production cost and time (1) Total production (12.56MT) divided by total no. of employees on Company payroll (11,904) in FY16 19

7 Strategic expansion aided by strong project execution Strong project execution capabilities Experienced in-house project management team Supported by cross-functional team (commercial, finance and legal department) Established long-term relationship with key domestic and international suppliers Savings in procurement cost by negotiating firm prices for follow-on orders at low specific investment cost (1) Low specific investment cost of $534/ton of capacity expansion shows cost and project management efficiency Vijayanagar Works: Major new & on-going Projects Pipe conveyor system for Iron ore and new water reservoir Dolvi Works: 1.5mtpa Coke Oven at Dolvi Coke Projects Ltd. Salem Works: Capacity expansion from 1 MTPA to 1.2 MTPA by setting up certain new facilities and debottlenecking/modification of existing facilities Setting-up of Reheating Furnace in Bar Rod Mill, Coke Oven and Turbo Generator Tarapur Works: Setting up 0.2MTPA Tin plate mill Focus on low cost and returns accretive brownfield projects to capitalise on expected demand growth (1) Gross Block as on December 31, 2016 (Rs. 65,288 Crores translated at USD/INR = 67.9547 RBI Reference as on December 31, 2016) divided by total capacity (18MTPA) 20

9 Proven ability to acquire and turnaround assets 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 Case Study: Turnaround strategy at JSW Ispat s Dolvi plant Plant under maintenance Loss making at EBITDA level High interest cost Financially distressed December 2010 Completed Initiatives FY2011 2015 FY2016-2017 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, rampup/stabilization is underway 1.5mtpa Coke Oven at Dolvi Coke Projects Ltd. is being set-up Further operational improvements underway Inability to service existing debt Inadequate cashflows Corporate debt restructuring (CDR) case Exit from CDR Generating positive profit after tax Operational improvements underway Able to leverage an acquisition to maximum value accretion through application of knowledge and experience (1) Implemented in a wholly owned subsidiary Amba River Coke Limited. 21

10 Robust financial profile Strong track record of volume growth Increased capacity to 18MTPA in 2016 from 1.6MTPA in 2002 Delivered 22% sales volumes in 9MFY17 growth despite weak economic and sluggish domestic demand Superior profitability supported by efficient operations Well-capitalized balance sheet Resilient operations with improved EBITDA margin marked by several productivity and cost improvement measures in FY14 and FY15 While FY16 EBITDA was impacted by weak steel pricing due to steel supply glut and planned shutdowns; it has improved siginificantly in FY17 Adequate liquidity levels owing to prearranged funding in place for capacity expansions and a committed 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 22

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 EBITDA (Rs per ton) 4,059 6,268 6,054 5,469 5,398 6,279 5,400 6,569 5,892 6,887 7,151 7,028 6,985 6,859 7,137 7,478 6,988 7,077 8,340 8,402 8,052 8,545 8,534 7,717 8,686 9,546 9,276 Historical EBITDA per ton JSW Steel Standalone 23

Agenda Overview Value Proposition Performance Overview Business Environment 24

Key highlights 3QFY17 Standalone performance Consolidated 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 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 Indian Industry (CII) under steel industry Category in its 3 rd edition of the Supply Chain and Logistics Excellence (Scale) Awards Accreditation with level 5 by TCM division of CII for Total Cost Management (TCM) Maturity Model 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 25

Quarterly volumes standalone Crude Steel Production Saleable Steel Sales 43% YoY -3% QoQ 3.86 3.98 43% YoY -5% QoQ 3.64 3.84 2.70 2.55 3QFY16 3QFY17 2QFY17 3QFY16 3QFY17 2QFY17 3QFY16 3QFY17 2QFY17 Flat 1.87 2.83 2.86 Long 0.63 0.74 0.79 3QFY16 3QFY17 2QFY17 Flat 1.86 2.79 2.80 Long 0.66 0.73 0.81 Semis 0.03 0.12 0.23 All figures are in million tonnes 26

9M volumes standalone Crude Steel Production Saleable Steel Sales 25% 22% YoY 11.70 YoY 10.82 9.36 8.84 9MFY16 9MFY17 9MFY16 9MFY17 9MFY16 9MFY17 Flat 7.60 8.43 Long 1.58 2.39 9MFY16 9MFY17 Flat 6.77 8.07 Long 1.93 2.28 Semis 0.15 0.47 All figures are in million tonnes 27

Quarterly sales highlights consolidated 2.67^ 3.61^ 3.82^ 12% 21% 26% 2.34* 2.85* 2.83* 11% 12% 12% 40% 32% 36% 0.96 1.71 1.32 2.29 1.28 2.54 49% 57% 52% 3QFY16 3QFY17 2QFY17 OE Retail Auto Exports 3QFY16 3QFY17 2QFY17 Other products Value added & special Products 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 Focused efforts towards value added & special products sales All 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 28

Quarterly retail sales highlights consolidated Retail sales^ ( 000 tonnes) 936 902 1,027 421 421 466 Network expansion and Influencer programme 515 481 561 3QFY16 3QFY17 2QFY17 Others Branded Sales 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 Overall retail sales was impacted by liquidity issues post demonatiztion HRPO sales grew 34%YoY and HRCTL sales grew 8%YoY ^ Total retail sales (JSW Steel Standalone + JSW Steel Coated Products after netting-off inter-company sales) 29

Automotive, Appliance and General Eng. grade approvals Applications Automotive Appliance General Eng. Components Grades Approved 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 IS15194 HS345 Structural SS540 MSL I Gr6 ASTM A 792 Weather Resistant IRSM 41 CR Coated HRPO HR Alloy Steel Longs Indicates 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. 30

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) USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016) * Not Annualized 31

9M Financials standalone Particulars 9MFY17 9MFY16 ` Crores USD mn ` Crores USD mn Total Income from Operations 39,962 5,881 30,244 4,451 Operating EBITDA 8,625 1,269 4,434 652 Other Income 174 26 295 43 Finance Cost 2,680 394 2,390 352 Depreciation 2,325 342 2,126 313 Exceptional Items - - 5,859 862 Profit Before Tax 3,793 558 (5,645) (831) 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 32

Operating EBITDA movement standalone $352 2,392 ` crore (987) (53) ($145) ($8) $8 $413 57 2,809 $152 1,035 $54 366 EBITDA 3QFY16 as per Ind-AS Volume NSR Cost Others Ind-AS Impact in 3QFY17 vs. 3QFY16 EBITDA 3QFY17 USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016) 33

Operational performance JSW Steel Coated Products Million tonnes Volumes 3QFY17 3QFY16 9MFY17 9MFY16 Production 0.43 0.33 1.29 1.11 Sales 0.43 0.34 1.27 1.14 ` crore Key P&L data 3QFY17 3QFY16 9MFY17 9MFY16 Total Income from Operations 2,437 1,630 7,020 5,694 Operating EBITDA 142 38 468 251 Profit after Tax 55 (16) 208 45 34

Operational performance US Plate & Pipe Mill 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% 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 USD mn 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) Net tonnes = 0.907 metric tonnes 35

3Q Financials consolidated Particulars 3QFY17 3QFY16 ` Crores USD mn ` Crores USD mn Total Income from Operations 15,312 2,253 9,589 1,411 Operating EBITDA 2,867 422 977 144 Other Income 33 5 27 4 Finance Cost 920 135 891 131 Depreciation 915 135 830 122 Exceptional Items - - 2,122 312 Profit Before Tax 1,066 157 (2,839) (418) 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) USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016) * Not Annualized 36

9M Financials consolidated Particulars 9MFY17 9MFY16 ` Crores USD mn ` Crores USD mn Total Income from Operations 42,619 6,272 34,230 5,037 Operating EBITDA 9,095 1,338 4,477 659 Other Income 96 14 112 16 Finance Cost 2,821 415 2,745 404 Depreciation 2,638 388 2,495 367 Exceptional Items - - 2,124 313 Profit Before Tax 3,733 549 (2,775) (408) 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) USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016) * Not Annualized 37

Net debt movement consolidated ` crore $6,466 43,937 $36 245 $36 245 $94 $6,514 641 44,265 803 ($118) Net Debt* as on Sep'16 New Loan Taken Repayments Fx Impact Movement in FD/MF Net Debt* as on Dec'16 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 *Net Debt excludes Acceptances USD/ ` = 67.9547 (RBI reference rate as on Dec 31, 2016) 38

Agenda Overview Value Proposition Performance Overview Business Environment 39

3.1% 3.4% 1.6% 0.9% 1.9% 1.6% 1.7% 4.1% 2.3% 1.6% 0.8% 4.5% 6.6% 7.2% 6.7% 6.5% Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Global economy 59 56 PMI Manufacturing US Japan Eurozone China Recent data indicate US growth recovery is robust enough for Fed to carry out another rate increase 53 50 47 Euro area growth remains resilient in the face of Brexit shock; political risk in the coming year to be watched out for Japan growth improved in 3QCY16, manufacturing PMI remained above 50 for 4 th consecutive month GDP growth - IMF projections for 2016 and 2017 (%YoY) 2016 2017 China growth rate in 4QCY16 at 6.8%YoY was a bit stronger than expected, supported by continued policy stimulus World AMEs US Euro Area Japan EMEs India China However, overall Global growth expectations remain unchanged amidst uncertainty around the US policies and their implications for theglobal economy Global economy is projected to grow by 3.4% in CY17 Source: Bloomberg, IMF and JSW Steel 40

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 $/tonne $/tonne Global steel scenario Steel exports (mn tonnes) 240 180 120 157 194 214 210 Exports from China, Japan, Korea and Russia continue to remain at elevated levels 60 0 750 625 500 375 250 125 - CY13 CY14 CY15 CY16 China Japan Korea Russia 300 240 180 120 60 - Japanese and Korean exports continue to be at a discount to their domestic market prices Coking coal contract price for 1QCY17 has been settled at $285/t and Iron ore price remains at elevated level. This will keep steel prices rangebound Hard coking coal FOB - RHS Korea - Domestic Japan - Domestic China - export FOB Japan & Korea - export FOB Iron ore China CFR -RHS Continued trade restrictions to influence global steel trade Source: SBB, ISSB, MySteel, Bloomberg and JSW Steel 41

Indian economy and steel industry FY16^ 1,058 Monthly steel imports (in '000 tons) +33% 733 618 693 576 648 690 587 634 841 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 8.8% 3.4% 72.35 66.52 59.54 61.54 Crude Steel Production Apparent Finished Steel 9MFY16 9MFY17 Consumption* Imports surged to 10MTPA on annualized basis in Dec 16 back to pre MIP Level; relook at trade remedial measures is necessary Crude steel production increased by 8.8%YoY whereas apparent finished steel consumption grew by 3.4%YoY in 9MFY17 Tepid steel demand reflects weak investment cycle, expect digital push and re-monetization to restore normalcy in demand The upcoming budget will be key with regard to government s policies to stimulate infrastructure investment and consumption growth via higher public spending and lower tax rates Demand remains weak, rising imports is a cause of concern 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 42

Forward looking and cautionary statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risk and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition within Steel industry including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, our ability to commission mines within contemplated time and costs, our ability to raise the finance within time and cost client concentration, restrictions on immigration, our ability to manage our internal operations, reduced demand for steel, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which the Company 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 our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the company. 43

Thank you 44