Performance

SAIL’s Expansion Plan

CSR & Environment Management

Awards & Accolades

H1 FY’10 Turnover of Rs. 20,481 crore – decreaseof 20% over CPLY.H1 FY’10 PBT – Rs.4529 crore –decrease of 23%H1 FY’10 PAT of Rs.2994 crore - decrease of 22%H1 FY’10 EBIDTA of Rs.5346 crore decrease of 19%H1 FY’10 EBIDTA to Sales of 28%PAT / Net worth of 19%Debt / Equity Ratio: 0.38:1 as on 30.09.2009

against 0.27:1 as on 31.03.2009.EPS of Rs.14.50, annualised

Financial Results –H1 FY’10 vs. H1 FY’09

Rs. Crore July 09Sept. 09

July 08Sept. 08

Increase(+)Decrease(-)

% Change

TURNOVER 10730 13544 (-) 2815 (-) 21%

EBIDTA 2925 3434 (-) 509 (-) 15%

PBT 2519 3067 (-) 548 (-) 18%

PAT 1663 2010 (-) 347 (-) 17%

Financial Results –Q2 FY 2009-10vs. Q2 FY 2008-09

5706

9423

11469

9403

2000

4000

6000

8000

10000

12000

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

500150025003500450055006500

H1 FY 09 H1 FY10

58604529

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

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

H1 FY10 PBT – Rs.4529 crore

Financial Performance

6202

7537

6175

10002000300040005000600070008000

2006-07 2007-08 2008-09

1000

2000

3000

4000

5000

H1 FY 09 H1 FY 10

3845

2994

PAT (Rs. Cr.)

PAT (Rs. Cr.)

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

Financial Performance

H1 FY10 PAT– Rs.2994crore

39189

45555

48681

30000

33000

36000

39000

42000

45000

48000

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

Year

Unit : Rs Crore

25728

20481

15000

18000

21000

24000

27000

30000

H1 FY'09 H1 FY'10Year

H1 FY10 Turnover of Rs 20481 crore Turnover of Rs.48681 crore in FY 08-09

Best ever

Sales Turnover

2006

2519

2010

13261663

3067

500

1500

2500

3500

Q2 FY 09 Q1 FY 10 Q2 FY 10

(Rup

ees

in c

rore

)

PBT PAT

The profits of Q1 FY10 excludes profit for Q1 FY10 of SAIL Refractory Unit (earlier known as Bharat Refractories Limited) which has been merged with SAIL

10967

12955

10942

5000650080009500

110001250014000

2006-07 2007-08 2008-09

66005346

2000

4000

6000

8000

H1 FY09 H1 FY10

Earning Before Interest Depreciation and Tax Unit : Rs Crore

10635

12704

10689

5000650080009500

110001250014000

2006-07 2007-08 2008-09

64965189

2000

4000

6000

8000

H1 FY09 H1 FY10

Cash Profits

Unit : Rs Crore

Borrowings

3251

11784

157

104

0

2000

4000

6000

8000

10000

12000

14000

30-Sep-08 30-Sep-0990

120

150

180Borrow ings

Interest Cost

Borr

owin

gs

Inte

rest

Cos

t H

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 30-09-2008 31-03-2009 30-06-2009 30-09-2009D/E Ratio 0.12 0.27 0.30 0.38

Unit : Rs Crore

Short Term Investments in Banks

16437

21951

1004

742

10000

15000

20000

30-Sep-08 30-Sep-09500

700

900

1100

Investments Interest Earned

Shor

t Te

rm In

vest

men

t in

Ban

ks

Inte

rest

Ear

ned

H1

5645

9034

13136

17714

3000

6000

9000

12000

15000

18000

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

Unit : Rs Crore

Net Worth

26908

31135

240002500026000270002800029000300003100032000

30-Sep-09 30-Sep-10

Net Worth

4659

10011 12386

17184

23004

27984

4000

9000

14000

19000

24000

29000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Unit : Rs Crore

Sales of 5.79 million tones - growth of 9.0% ascompared to corresponding period of last year.

Saleable steel production of 6.20 million tones -growth of 1% as compared to corresponding period oflast year.

Crude steel production of 6.674 million tones – similarto corresponding period of last year.

Special Steel Production 2.32 million tones - increaseof 18% as compared to corresponding period of lastyear.

Production through Concast 4046 million tones -growth of 1% as compared to corresponding period oflast year( CPLY).

Coke Rate at 515 kg/T - improvement by 2.6% over CPLY

Energy Consumption 6.76 (G.Cal/tcs) – improved by 1%over Corresponding Period Last Year.

Avg. Capacity utilisation (Saleable Steel) – 112%

Avg. Capacity utilisation (Hot Metal) – 103%

Avg. Capacity utilisation (Concast Production) – 114%

Performance Highlights – H1 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

6.1 6.2

2.000

4.000

6.000

8.000

H1 FY'09 H1 FY'10

April-Sept.

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

2.0

2.3

0.5

1.5

2.5

H1 FY 09 H1 FY 10

April-Sept.

Special Steel Production

18% increase in production of Value Added Products

(in Million Tonnes)

Saleable Steel ProductionPlant-Wise, Quarter-Wise

11341061

1136

469

462

444

499

463

520

817871854

97 101

90

0

200

400

600

800

1000

1200

Q2 FY09 Q1 FY10 Q2FY10

BSP DSP RSP BSL ISP

(in Thousand Tonnes)

(Five Integrated Steel Plants Only)

1105

218 147

603

104951

1663

487

60911

24

430

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)

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

6.82 6.76

6.006.206.406.606.807.007.207.40

H1 FY09 H1 FY10

April-Sept.’09

TE Parameters

Reduction in Energy Consumption

Coke Rate (Kg/THM)

529

515

500

510

520

530

540

550

H1 FY09 H1 FY10

Continuous efforts to contain coke rate

541

533

521

500510520530540550560

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

Coke Rate at 515 kg/Thm - lower by 3% over CPLY

TE Parameters

214 215

223225

200

205

210

215

220

225

230

'07-08 '08-09 Q2FY'09 Q2FY'10

Manpower reduction nearly 7800 during last one year.

Current manpower : 1.18 lakh as on 30.09.09.

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

3.0

1.5

2.0

2.5

3.0

3.5

4.0

Q1 Q2 Q3 Q4

2007-08 2008-09 2009-10

Including Special Steel Plants

(In Million Tonnes)

Saleable Steel Sales Volume

0.8

0.40.5

0.1

1.10.90.9 0.9

0.7

0.40.40.50.5

0.10.1

0.0

0.5

1.0

1.5

Q2 FY09 Q1 FY10 Q2 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

5.35.8

0.01.0

2.03.0

4.05.0

6.07.0

H1FY09 H1 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

588

1861

400

900

1400

1900

2400

30-09-2009

Districts Covered Dealers Appointed

2.24 lakh tonnnes of Steel was sold through Dealers network during April-Sept. 2009.

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

163 165

85

67

7883

76

96

109

173

151

175171

14494

1567014625

11403

9709

15896

9788

15667

889294249093

9647

17127

50

70

90

110

130

150

170

190

Oct08 Dec08 Feb09 Apr09 Jun09 Aug-09

30-Oct-09

7000

12000

17000

22000

27000

SAIL

SENSEX

Year Interim %

Final%

Total%

Dividend(Rs. in Cr)

2008-09

2007-08

2006-07

13.0

19.0

16.0

13.0

18.04

15.0

26.0

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

Raw Material 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 costof Rs. 37,000 crore (USD 7.4 billion) approximately.

In addition, following capex has also been planned for schemes, asgiven 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. 7400crore, including Rs. 6100 crore for expansion and Rs. 1300 for otherschemes, already spent during 2007-08 and 2008-09.

Besides, capital schemes relating to augmentation of productionfrom existing mines and development of new mines will be takenup.

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

1925

4920

1000

3000

5000

H11 FY09 H1 FY10

2181

5233

1500

3500

5500

'07-08 '08-09

Capital Expenditure on Expansion and Moderanisation

Amount in Rs. Crore

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

Orders for Rs.37,000 crore approximatelyhave already been placed for variousModernisation / Expansion Projects/Sustenance Schemes.

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

Capex Plan for 2009-10 is Rs.10000 croreapproximately.

Ongoing Projects

Ongoing Projects

Expected Outcome

Enhancement of Production Capacity and MarketShare

World Class Technology and Products

Improved Product mix/ proportion of value addedproducts to increase

Complete elimination of Semi-finished steel

Enhanced Pollution control measures, withenvironmental conservation

Captive Power generation capacity to increase from872 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 to supportincreasing Infrastructural requirements

Rails for Metro-Railways

Increased production of Rails and wheels to meet theincreasing requirements of Indian Railways

Quantum jump in Rounds and Structural productionleading 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 (2012)

BSP 5.39 7.50 4.49 6.56 (6.56)DSP 2.11 3.50 1.79 2.83 (2.12)RSP 2.20 4.50 1.99 3.99 (3.99)BSL 4.02 7.44 3.38 6.53 (4.18)ISP 0.60 2.91 0.41 2.39 (2.39)VISL 0.13 0.33 0.09 0.22 (0.22)ASP - - 0.17 0.43 (0.43)SSP - - 0.18 0.34 (0.34)Total 14.44 26.18 12.50 23.29 (20.23)

Capacity increase after Expansion

Figures in brackets indicate capacity after implementation of on going phase of modernisation and expansion to be completed by 2012.

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

0.00

0.50

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

Bharat Refractories Limited has been merged withSAIL and shall be known as SAIL Refractory Unit. Action for merger of MEL with SAIL is under process. Setting up of a Joint Venture shipping company withShipping Corporation of India. SAIL has instituted an HR Award for Excellence, tocommemorate completion of 50 years of production.The expertise of IIM-A as ‘Knowledge Partner’ and ofEconomic Times as ‘Media Partner’ were utilised torecognise outstanding work done by companies duringthe last five years

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, 9Reproductive and Child Health Centres, 35 Hospitals and 7super Speciality Hospitals to provide specialized healthcareto almost 28 million people.

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

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

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

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

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

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

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

Akshay Patra Foundation - average 20,000 number of mid-daymeals are being supplied daily to school children in Durg.

More than 15,000 patients were treated at different plantlocations under various Health Schemes being run by SAILplants/units.

Performance Highlights – SAIL CSR

Outstanding Achievement for Rural and Community Development

Accolades

Two MoU Excellence Awards in the categories ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.

The Gold Trophy of SCOPE Award for Excellence and Outstanding Contribution to PublicSector Management in the ‘Instituitional’ category for the year 2006-07.

SCOPE Award for ‘Excellence and Outstanding Contribution to Public Sector Management’ Under ‘Individual’ category, for the year 2007-08, to SAIL Chairman, Mr. S K Roongta.

Prime Minister Dr. Manmohan Singh, in theSCOPE & DPE function held on 15th October, 2009at Vigyan Bhawan, conferred the highest no. of 4awards amongst all PSUs to SAIL. These include:

SCOPE Award for ‘Excellence and Outstanding Contributionto Public Sector Management’ under ‘Individual’category, for the year 2007-08, to SAIL Chairman, Mr. S KRoongta.

The Gold Trophy of SCOPE Award for Excellence andOutstanding Contribution to Public Sector Management inthe ‘Instituitional’ category for the year 2006-07.

Two MoU Excellence Awards in the categories ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.

Maximum number of Shram and Vishwakarma Awardsamongst both private and public sector organizations inthe country. 40-52% employees awarded Shram andVishwakarma awards are from SAIL this year.

7 Gold, 2 Silver and 5 Bronze awards won by SAIL teamsin the international Quality Circle meet held in Cebu(Philippines) in Oct’09 – highest by any organization. In2007 and 2008 also, SAIL Quality Circle teams (includingworkmen) won highest number of awards given to anysingle organization in the country at the international QCmeets held in Beijing & Dhaka respectively.

SAIL has received the 2nd Runner up award for ‘BestPresented Accounts Award 2008’ from the ‘South AsianFederation of Accountants’ (SAFA) in the Category of ‘PublicSector Entities’. This award shall be presented to SAIL at ceremony to beorganised on 5th November 2009 at Dhaka, Bangla Desh. SAIL has received the ‘India Pride Award - Gold Trophy’ forthe Category of ‘Metals, Minerals and Trade’, instituted by DNAand Dainik Bhaskar, to acknowledge and reward thecontribution of PSUs in the overall development of theCountry. The award was presented by Mr. PChidambaram, Union Home Minister

India Pride Award Gold Trophy for the Category of Metals, Minerals andTrade was presented by Mr. P Chidambaram, Union Home Minister

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