Performance

SAIL’s Expansion Plan

CSR & Environment Management

Awards & Accolades

Q1 FY’10 Turnover of Rs.9747 crore – decrease of 20%.Q1 FY’10 PBT – Rs.2006 crore –decrease of 28%Q1 FY’10 PAT of Rs.1326 crore - decrease of 28%Q1 FY’10 EBIDTA of Rs.2416 crore decrease of 24%Q1 FY’10 EBIDTA of 27%, higher by 4.4% as

compared to Q4 FY09PAT / Net worth – 18%Debt / Equity Ratio: 0.30:1 as on 30.06.2009

against 0.27:1 as on 31.03.2008.EPS of Rs.3.21, not annualised

Financial Results –Q1 FY’10 vs. Q1 FY’09

Rs. Crore April 09June 09

April 08June 08

Increase(+)Decrease(-)

% Change

TURNOVER 9747 12183 (-) 2437 (-) 20%

EBIDTA 2416 3166 (-) 751 (-) 24%

PBT 2006 2793 (-) 787 (-) 28%

PAT 1326 1835 (-) 509 (-) 28%

Financial Results –Q1 FY 2009-10vs. Q1 FY 2008-09

5706

9423

11469

9403

2000

4000

6000

8000

10000

12000

2005-06 2006-07 2007-08 2008-09

2793

2006

500

1500

2500

3500

Q1 FY 09 Q1 FY10

PBT (Rs. Cr.) PBT (Rs. Cr.)

Profit Before Tax of Rs.9403 crore in FY 2008-09

Q1 FY10 PBT – Rs.2006 crore

Financial Performance

6202

7537

6175

10002000300040005000600070008000

2006-07 2007-08 2008-09

1835

1326

1000

2000

3000

Q1 FY 09 Q1 FY 10

PAT (Rs. Cr.) PAT (Rs. Cr.)

Profit after Tax of Rs.6175 crore in 2008-09.

Financial Performance

Q1 FY10 PAT– Rs.1326crore

39189

45555

48681

30000

33000

36000

39000

42000

45000

48000

'06-07 '07-08 '08-09

Year

Unit : Rs Crore

12183

9747

8000

10000

12000

14000

Q1 FY'09 Q1 FY'10Year

Q1 FY10 Turnover of Rs 9747 crore Turnover of Rs.48681 crore in FY 08-09

Best ever

Sales Turnover

22872006

18351487 1326

2793

500

1500

2500

3500

Q1 FY 09 Q4 FY 09 Q1 FY 10

(Rup

ees

in c

rore

)

PBT PAT

10967

12955

10942

5000650080009500

110001250014000

2006-07 2007-08 2008-09

31662416

1000

2000

3000

4000

5000

Q1 FY09 Q1 FY10

Earning Before Interest Depreciation and Tax

Unit : Rs Crore

Borrowings

2785

8839

83

570

2000

4000

6000

8000

10000

6/30/2008 6/30/200950

60

70

80

90

100Borrow ingsInterest Cost

Borr

owin

gs

Inte

rest

Cos

t Q

1

4298 4181

3045

7539

2000

3000

4000

5000

6000

7000

8000

31-03-06 31-03-07 31-03-08 31-03-09

Borrowing Annual

Year 30-06-2008 31-03-2009 30-06-2009D/E Ratio 0.11 0.27 0.30

Unit : Rs Crore

Investments

17030

18923

533

390

15000

20000

30-Jun-08 30-Jun-09350

500

650

Investments Interest Earned

Shor

t Te

rm In

vest

men

t in

Ban

ks

Inte

rest

Ear

ned

Q1

5645

9034

13136

17714

3000

6000

9000

12000

15000

18000

3/31/2006 31-03-07 31-03-08 31-03-09

Investments Annual

Unit : Rs Crore

Sales of 2.78 million tones - growth of 4% as compared to corresponding period of last year.

Semis component in sales of saleable steel is 11% [ 5 ISPs]. Saleable steel production of 3.06 million tones - growth of 4% as

compared to corresponding period of last year. Hot Metal production of 3.46 million tonnes –similar to

corresponding period of last year. Crude steel production of 3.27 million tones - growth of 2% as

compared to corresponding period of last year. Special Steel Production 1.14 million tones - increase of 21% as

compared to corresponding period of last year. Production through Concast 2.2 million tones - growth of 5% as

compared to corresponding period of last year.

Coke Rate at 512 kg/T - improvement by 3% over CPLY

Energy Consumption 6.79 (G.Cal/tcs) – improved by 1% over Corresponding Period Last Year.

Avg. Capacity utilisation (Saleable Steel) – 111%

Avg. Capacity utilisation (Hot Metal) – 101%

Avg. Capacity utilisation (Concast Production) – 114%

Performance Highlights – 2009-10Major Techno Economic Parameters

Saleable Steel (in Million Tons)

12.613.0

12.5

1010.5

1111.5

1212.5

13

'06-07 '07-08 '08-09

2.9 3.1

1.000

2.000

3.000

4.000

Q1 FY'09 Q1 FY'10

April-June

Production

Including Special Steels Plants

Production of Value added materials of 5 ISPs

1.46

3.363.73

1

1.5

2

2.5

3

3.5

4

'06-07 '07-08 '08-09

0.9

1.1

0.5

1.0

1.5

Q1 FY 09 Q1 FY 10

April-June

Special Steel Production

21% increase in production of Value Added Products

(in Million Tonnes)

Saleable Steel ProductionPlant-Wise, Quarter-Wise

106110681179

462

437

477 46

3492

573

871763

900

131

89 101

0

200

400

600

800

1000

1200

1400

Q4 FY09 Q1 FY09 Q1 FY10

BSP DSP RSP BSL ISP

(in Thousand Tonnes)

(Five Integrated Steel Plants Only)

2402

505 319

1203

165

1964

3289

887

1116

25

94

930

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

BSP DSP RSP BSL ISP

Semi FinishedFlat ProductsLong Products

Production of Saleable SteelPlant Wise Category wise

(in Million Tonnes)

FY 2008-09 5 Integrated Steel Plants

Semis 18%

Flats 55%

Long 27%

Specific Energy Consumption (Gcal/TCS)

7.166.95

6.74

66.26.46.66.8

77.27.4

'06-07 '07-08 '08-09

6.896.79

6.006.206.406.606.807.007.207.40

Q1 FY09 Q1 FY10

April-June’09

TE Parameters

Reduction in Energy Consumption

Coke Rate (Kg/THM)

530

512

500

510

520

530

540

550

Q1 FY09 Q1 FY10

Continuous efforts to contain coke rate

541

533

521

500510520530540550560

'06-07 '07-08 '08-09

Coke Rate at 512 kg/Thm - lower by 3% over CPLY

TE Parameters

214 215

110

130

150

170

190

210

230

'07-08 '08-09

Manpower reduction over 7500 during 2008-09

Current manpower : 1.19 lakh as on 30.06.09.

Tonne Crude Steel /man / year

Labour Productivity

2.5

3.0 3.0

3.8

2.7 2.6

2.4

3.6

2.8

1.5

2.0

2.5

3.0

3.5

4.0

Q1 Q2 Q3 Q4

2007-08 2008-09 2009-10Including Special Steel Plants

(In Million Tonnes)

Saleable Steel Sales Volume

0.9

0.4 0.5

0.1

0.90.9

1.2

0.8

1.0

0.3

0.60.5

0.6

0.10.1

0.0

0.5

1.0

1.5

Q4 FY09 Q1 FY09 Q1 FY10

BSP BSL DSP RSP ISPPlant-wise, Integrated Steel Plants

(In million tonnes)

Saleable Steel Sales Volume

11.3

12.311.9

9.0

10.0

11.0

12.0

13.0

2006-07 2007-08 '08-09

Saleable Steel Sales Volume

Including Special Steel Plants

2.7 2.8

0.0

1.0

2.0

3.0

4.0

Q1 FY09 Q1 FY10

(in million tonnes)

4.24.03.6

3.2

1.61.62.01.9

0.40.4

0.0

1.0

2.0

3.0

4.0

5.0

2008-09 2007-08

BSP BSL DSP RSP ISP

Plant-wiseSaleable Steel Sales Volume

(In Million Tonnes)

Sales through Dealers NetworkNo. of Dealers and Districts Covered

602 625

1897

2406

400

900

1400

1900

2400

31-03-2008 31-03-2009

Districts Covered Dealers Appointed

Sens

ex (

Poin

ts)

Shar

e Pr

ice

(Rs)

Month

Closing Share Price & Sensex as on the last day of the month

Performance of SAIL Share price vis-à-vis BSE Sensex

173171

141

156

128

85

67

7883

76

96

109

151

9709

11403

889294249647

15173

14356 14625

90939788

14565

12860

14494

50

70

90

110

130

150

170

190

July08 Sept08 Nov08 Jan09 Mar09 May09 29Jul09

7000

12000

17000

22000

27000

SAIL

SENSEX

2007-08

Year Interim %

Final%

Total%

Dividend(Rs. in Cr)

2008-09

2007-08

2006-07

13.0

19.0

16.0

13.0(proposed)

18.04

15.0

26.0(proposed)

37.0

31.0

1074

1528

1280

Dividend

EXPANSION AND

MODERNISATION PLAN

Road Map For Future

SAIL’s Expansion Plan

ParticularsMillion Tonne

Present After Expansion

Hot metal 15.2 26.2 (23.5)

Crude Steel 14.0 24.6 (21.4)

Saleable Steel 13.0 23.1 (20.2)

Figures in bracket indicate capacity after Implementation of ongoing phase of moderanisation and expansion to be completed by 2012

Technology Current Status

After Expansion

BOF Steel making 77% 100%

CC Route 66% 100%

Pelletisation Plant No Yes

Coke Dry Quenching No Yes

Top Pressure Recovery Turbine No Yes

Auxiliary Fuel Injection in BF Partial coverage Full coverage

Desulphurization of Hot Metal Partly 100%

Thin Slab Casting - Compact Strip Mill No Yes

Beam Blank Casting No Yes

Coupled Pickling & Tandem Mill No Yes

Beneficiation Plant Partial Full

Expansion Plan : Technological Shift

Ongoing ProjectsThe ongoing moderanisation and expansion has been planned

to achieve saleable steel production of 20.23 million tonne, at a cost of Rs. 37,000 crore (USD 7.4 billion) approximately.

In addition, following capex has also been planned for schemes, as given hereunder:

Scheme Estimated cost

Value Addition/ Product-mix Improvement Rs. 7,000 crore (USD 1.4 billion)

Technological Upgradation/ Moderanisation Rs. 3,500 crore (USD 0.7 billion)

Sustenance including debottlenecking, AMR and Environment

Rs. 12,300 crore (USD 2.5 billion)

The above details of capex includes an amount of Rs. 7400 crore, including Rs. 6100 crore for expansion and Rs. 1300 for other schemes, already spent during 2007-08 and 2008-09.

Besides, capital schemes relating to augmentation of production from existing mines and development of new mines will be taken up.

3700037000

7000 3500

12300

22800

1 2 3 4 5

In R

upee

s C

rore 59800

1 Expansion of Existing capacity

2 Value Addition/ Product-mix Improvement

3 Technological Upgradation/ Moderanisation

4 Sustenance including debottlenecking, AMR and Environment

5 Total estimated cost

Ongoing Projects

Total Capex for 2007-08 was Rs. 2181 crore and the Capex for 2008-09 is Rs. 5233 Crore.

Orders for Rs.37,000 crore approximately have already been placed for various Modernisation / Expansion Projects/ Sustenance Schemes.

Various options for raising fund to finance the capex plan are being explored.

Capex Plan for 2009-10 is Rs.10000 crore approximately.

Ongoing Projects

Ongoing Projects

Expected Outcome

Enhancement of Production Capacity and Market Share

World Class Technology and Products

Improved Product mix/ proportion of value added products to increase

Complete elimination of Semi-finished steel

Enhanced Pollution control measures, with environmental conservation

Captive Power generation capacity to increase from 872 MW to 1922 MW

Ongoing ProjectsThe Products to be added:

Auto grade CR Products, Galvanealed Coils/ Sheets

Plates/ Pipes to meet up to API 100 Grade specification

Universal Beams/ Heavy Beams in the sizes up to 1100 mm to support increasing Infrastructural requirements

Rails for Metro-Railways

Increased production of Rails and wheels to meet the increasing requirements of Indian Railways

Quantum jump in Rounds and Structural production leading to elimination of entire semi-finished steel

Wider Plates in the size of 4500 mm

Plant Hot Metal (Mtpa) Saleable Steel (Mtpa)

2008-09 Actual

After Expansion

2008-09Actual

After Expansion

BSP 5.39 7.50 4.49 6.53DSP 2.11 3.50 1.79 2.83RSP 2.20 4.50 1.99 3.88BSL 4.02 7.44 3.38 6.53ISP 0.60 2.91 0.41 2.37VISL 0.0.13 0.33 0.09 0.22ASP - - 0.17 0.43SSP - - 0.18 0.34Total 14.44 26.18 12.50 23.13

Capacity increase after Expansion

SAIL’S Growth PlanSaleable Steel Production Capacity

Mill

ion

Tonn

e

4.5

1.8 2.03.4

0.4

2.0

1.01.9

3.1

2.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

BHILAI DURGAPUR ROURKELA BOKARO IISCO

Production 08-09 Planned Increase

6.5

3.9

2.42.8

6.5

SAIL’S Growth PlanSaleable Steel Production Capacity

Specialty Steel PlantsM

illio

n To

nne

0.090.17 0.18

0.13

0.260.16

0.000.050.100.150.200.250.300.350.400.450.50

VISL ASP SSP

Production 2008-09 Planned Increase

0.22

0.34

0.43

Total Existing .45 MT and After Expansion 1MT

RAILWAY MATERIALS

7.4%STRUCTURALS

15.0%

CR COILS / SHEETS

10.4%

COATED PRODUCTS

4.8%

ROUNDS / BARS23.3%

PIPES0.6%

PLATES16.4%

HR COILS / SHEETS

22.1%

Product Mix - Saleable Steel Production

PIPES0.5%

RAILWAY MATERIALS

8%

STRUCTURALS5.5%

CR COILS / SHEETS

8.7%

COATED PRODUCTS

2.8%

ROUNDS/BARS10.2%

SEMIS18.4%

PLATES20.5%

HR COILS / SHEETS

24.1%

FY2008-09

After Expansion

IRON ORE LINKAGES

Year Hot Metal Production

Iron Ore Consumption

Linkages of Iron Ore

2008-09 14.4 23 Existing Mines

Post Expansion 26 43

Existing Mines + Raoghat, Chiria & Taldih + Thakurani

2020 ~ 60 100Existing Mines + Raoghat, Chiria & Taldih + Thakurani

Mtpa

Raw Materials

COAL LINKAGESMtpa

Year Hot Metal Production

Coking Coal Requirement

Linkages for Coking Coal

2008-09 14.4 13.8 Import Component – 70% Indigenous – 30%

Post Expansion 26 23

-Import component to increase-Long term component 90% w.e.f. FY09-Existing mines to be worked/ developed-New alliances/ linkages/ acquisitions to be explored

2020 ~ 60 50

Raw Materials

Union Cabinet has accorded the proposal of merger BRL with SAIL. Action for merger of MEL with SAIL is under process. Setting up of a Joint Venture shipping company with Shipping Corporation of India. SAIL has instituted an HR Award for Excellence, to commemorate completion of 50 years of production. The expertise of IIM-A as ‘Knowledge Partner’ and of Economic Times as ‘Media Partner’ were utilised to recognise outstanding work done by companies during the last five years

Merger of BRL with SAIL: Efforts will be made to issue the final order for merger within 100 days. Merger of MEL with SAIL: Efforts will be made to ensure that all the approvals are obtained in the next 3 months and the merger process completed by the end of financial year. Allocation of Chiria Mines to SAIL: Efforts to be made in the next 100 days to complete the requisite formalities to settle the pending issues in favour of SAIL. Forestry clearance for the Rowghat Mines: Efforts to be made to get the final forestry clearance from MoEF, Government of India, in next 100 days. Commencement of Work of SMS – SAIL’s BSP: The work on executing this project to commence within next 3 months. JV of SAIL with Shipping Corporation of India JV of MOIL & SAIL for setting up Ferro Alloy Plants: Work on setting up this Plant to commence within 100 days.

79 villages have been adopted as Model Steel Villages across8 states for exclusive development of Medical facilities,Education, Roads, Sanitation, Community Centre etc. and15 such villages have already been completed.

Corporate Social Responsibility –Model Villages

Performance Highlights – SAIL CSR SAIL has established 32 Primary Health Centres, 9 Reproductive

and Child Health Centres, 35 Hospitals and 7 super SpecialityHospitals to provide specialized healthcare to almost 28 million people.

It has opened about 240 school in the steel townships to provide modern education to about 76,000 children.

SAIL has adopted and providing assistance to over 1119 schools, with more than 1,11,958 students of around 435 villages surrounding its units.

In this endeavour, SAIL has achieved a Girl:Boy ratio of 1:1 for all levels of education and a survival rate i.e. rate of retaining enrolled students of 90% in SAIL schools.

For the financial year 2008-09, the budget for CSR was earmarked as 2% of distributable surplus.

SAIL was adjudged a Finalist of ‘Stivie Award – 2009’.

Bhilai Steel Plant (BSP) – SAIL has been awarded “Golden Peacock Award – 2008” for CSR.

Salem Steel Plant (SSP) – SAIL has been awarded “CSR Award” by Tamilnadu Government for the year 2008-09 for its valuable contribution towards socio-economic upliftment of neglected section of society.

Performance Highlights – SAIL CSR

Outstanding Achievement for Rural and Community Development

Accolades

Accolades

SAIL Quality Circle Teams have won highest number of awards in the country at the International QC Meet in Bangladesh held in Oct’08; 7 Excellent, 7 Extra Ordinary & 1 Meritorious Awards won by SAIL teams.

SAIL is among the Top Companies for National Award for Excellence in Corporate Governance 2008 by the Institute of Company Secretaries of India.

PHD Chamber Good Corporate Citizen 2008 has been bagged by SAIL.

SAIL has got Commendation Certificate on Good Corporate Governance for the Year 2006-07 by SCOPE which was conferred on 21st November 2008.

Indian Institute of Metals (IIM) award conferred to four SAIL professionals including the O P Jindal Award.

3 SAIL executives got declared ‘Metallurgist of the year/ young Metallurgist of the year by IIM. First prize to Salem steel Plant amongst Secondary steel plants/Alloy Steel Plants category by IIM. SAIL received Plaque from Institute of Chartered Accountants of India for the year 2007-08 for better financial reporting practices and commended Annual Report, in the category of the manufacturing and trading enterprises.

PHD Chamber Good Corporate Citizen 2008 has been bagged by SAIL. The Award was presented by Hon’ble Central Cabinet

Minister Shri Pranab Mukherjee on 17th December 2008

Abbreviations used

ASP Alloy Steels Plant BF Blast Furnace BOF Basic Oxygen Furnace BPL Below Poverty Line BSL Bokaro Steel Limited BSP Bhilai Steel Plant CS Crude Steel CPLY Corresponding Period Last Year DSP Durgapur Steel Plant EBIDT Earnings Before Interest Depreciation & Taxes G.Cal/tcs Giga Calories per tonne of Crude Steel GoI Government of India IISI International Iron & Steel Institute ISP IISCO Steel Plant

JPC Joint Plant Committee Kg/thm Kilo Gram Per Tonne of Hot Metal MEL Maharashtra Elektrosmelt Limited MT Million Tonne Mtpa Million Tonne Per Annum PAT Profit After Tax PBT Profit Before Tax RDCIS Research & Development Centre for Iron & Steel RINL Rashtriya Ispat Nigam Limited RSP Rourkela Steel Plant SSP Salem Steel Plant VISL Visvesvaraya Iron & Steel Plant

Abbreviations used

Statements / Data which do not relate to SAIL and are used / made in this

presentation are from sources which are considered reliable and Company cannot

be held for its authenticity.

Further, statement describing the Company’s projections, estimates, expectations

are “forward looking statements” within the meaning of applicable securities laws

and regulations. Actual results may differ materially from those expressed

depending on the circumstances / situations.

Major factors that could affect the Company’s operations include, among others,

economic conditions affecting demand / supply and prices in the domestic and

global markets in which the Company operates, changes in Government

regulations, tax laws and other statutes etc.

Disclaimer