Agenda

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(No Transcript)
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Agenda

• Industry Outlook
• Global Steel Scenario
• Domestic Steel Outlook
• Significant Developments at JSW
• Key Performance Highlights Results
• JVSL
• JISCO
• Merger - Impact Status
• Way Forward

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Global Steel Scenario

• Global steel prices expected to remain stable
• Lower growth in production due to shortage in
  availability of key raw materials
• High cost of production due to increase in input
  costs
• Impact of measures to avoid hard landing by China
  drops Chinese steel consumption
• Cushioned by increased consumption in US, Europe,
  Russia, Brazil India
• Raw materials scenario expected to ease by 2006
• Oil prices continue to be a concern (even after
  an upward revision in the projected Industrial
  production figures)
• Expanding scale global presence through
  consolidation
• Merger of ISG with LNM group - entity with 70
  mtpa capacity over 14 countries

Steel prices expected to remain stable over
medium term
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Raw Material Prices
Source Company
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Domestic Steel Outlook

• Steel consumption remains strong across all
  sectors
• High international prices neutralise impact of
  reduction in duty to 5 and consequent reduction
  in DEPB rates
• Standalone downstream facilities to be affected
• India sought after steel investment destination
  due to the natural advantages (alongwith Brazil)
• Poor infrastructure development remains a major
  hindrance

Domestic steel sector to remain stable
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Agenda

• Industry Outlook
• Global Steel Scenario
• Domestic Steel Outlook
• Significant Developments at JSW
• Key Performance Highlights Results
• JVSL
• JISCO
• Merger - Impact Status
• Way Forward

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Significant Developments at JSW

• Expansion of Pellet capacity from 3.0 mtpa to 4.2
  mtpa (May 2004)
• Commissioning of dedicated 0.9 mtpa Blast Furnace
  (August 20, 2004)
• Finished steel capacity enhanced to 2.5 mtpa
• Good quality of hot metal ensures full
  utilisation of hot metal for steel making
• Achieved rated capacity within 45 days of
  commissioning
• Commissioning of 2nd Reheating Furnace (September
  25, 2004)
• Rolling capacity enhanced to 2 mtpa
• Expansion strongly backed by lenders
• Capacity Cost(Rs.
  Crs) Completion date
• Finished Steel Capacity 3.8mtpa 1275 31.03.2006
• Pellet plant capacity 5.0mtpa
  36 30.09.2005

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Significant Developments at JSW (contd..)

• Settlement of Right of Recompense with CDR
  lenders
• All future right of recompense waived
• Refinancing part of existing CDR debt by
  securitisation of future export receivables of US
  75 million
• Reduction in interest cost by approx. Rs.14
  crores p.a.
• Weighted avg. cost of debt at 8.67 (from 9.28)
• JVSL conferred with the BEST INFORMATION
  TECHNOLOGY USER AWARD IN MANUFACTURING CATEGORY
  by NASSCOM.
• SISCOL takeover by JSW group
• Facilitates entry into long steel products

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Agenda

• Industry Outlook
• Global Steel Scenario
• Domestic Steel Outlook
• Significant Developments at JSW
• Key Performance Highlights Results
• JVSL
• JISCO
• Merger - Impact Status
• Way Forward

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Key Performance highlight Q2 05 - JVSL

• Overall performance
• Net Sales 37 - Highest ever Turnover of Rs.
  1213 crs
• EBIDTA 38 - Highest ever Rs. 349.88 crs
• Cash Profit 87 - Rs. 243.38 crs
• Net Profit 246 - Rs. 81.11 crs
• Highest monthly production of Pellets in July
  336,184 t
• Highest ever caster yield _at_ 98.49 in September,
  2004
• Converter life 4,309 heats Indian record
• Accumulated losses wiped out
• Debt Reduction (Rs. Crs) Q205 H105
• Repayment of loans 99.73 209.18
• Prepayment of Loans 69.67 91.67
• Total 169.40 300.85

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Financial Results Q2 FY 2005
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Financial Performance
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Key Performance highlight Q2 05 - JISCO

• Overall exemplary performance
• GP/GC Production 27 - 1.68 lac tons
• GP/GC sales volume 32 - 1.82 lac tons
• Net Sales 48 - Rs. 738.88 crs
• EBIDTA 24 - Rs. 125.71 crs
• Cash Profit 41 - Rs. 111.09 crs
• Net Profit 33 - Rs. 60.45 crs
• EBIDTA margins continues to be the best in
  Industry
• Earning Per share Rs. 13.74 per share as
  compared to Rs. 10.51 for corresponding quarter
• Debt Reduction (Rs. Crores) Q205 H105
• Repayment of loans 28.73 55.69
• Prepayment of Loans 14.06
• Total 28.73 69.75

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Financial Results Q2 FY 2005
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Agenda

• Industry Outlook
• Global Steel Scenario
• Domestic Steel Outlook
• Significant Developments at JSW
• Key Performance Highlights Results
• JVSL
• JISCO
• Merger - Impact Status
• Way Forward

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Financial Results of Merged Entity H1 FY 2005
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Cautionary Statement

• The figures mentioned above are provisional and
  not conclusive. Actual results can differ from
  those expressed based on the disposal of the
  "Scheme". Readers of the statement are cautioned
  that the "Scheme" is under implementation and the
  Company assumes no responsibility for any action
  taken based on the above information or to update
  the same as circumstances change.
• From the effective date of the Scheme, name of
  the Company shall be changed to Jindal Iron
  Steel Company Limited".
• The aforesaid provisional unaudited combined
  financial results (provisional) were considered
  by the Board at the meeting of the Board of
  Directors held on 26th August, 2004 and subjected
  to Limited Review by the Statutory Auditors.

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Status of Merger

• Scheme approved by Hon. High Court of Bombay on
  03.09.04
• Hearing fixed on Oct. 28, 2004 at Hon. High Court
  of Karnataka and approval expected soon

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Agenda

• Industry Outlook
• Global Steel Scenario
• Domestic Steel Outlook
• Significant Developments at JSW
• Key Performance Highlights Results
• JVSL
• JISCO
• Merger - Impact Status
• Way Forward

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Way forward
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Way forward (contd..)
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Way forward (contd..)
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Way forward (contd..)
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Capital expenditure program upto 31.03.06
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Level of integration across value chain

• Proximity to source of iron ore 40 from own
  mines, to be augmented to meet entire
  requirements gradually.
• Use of abundantly available low cost Corex coal
• Captive coke from a dedicated facility
• Strategic investment in coal mines
• Dedicated mines for fluxes Limestone, Dolomite,
  Quarzite etc.

Raw Materials

• Fully self sufficient in power generation using
  waste gases from steel plant
• Oxygen other industrial gases from JPOCL under
  a long term supply agreement
• Adequate availability of water

Utilities

• Well connected by road rail
• Dedicated port at Goa
• Easy access to sea ports on both East West coast

Logistics
Manpower

• Manned by skilled labour with high productivity

Focused to achieve control over entire supply
chain
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Conclusion

• Well equipped to reap benefits of prevailing
  steel scenario domestically internationally
• Committed towards strengthening the company with
  focused approach to face future challenges

Aimed at creating Value for all stakeholders