Baoshan Iron & Steel Co.,Ltd. 2014 Full Year Results · Operation Overview Unit 2013 2014 YoY Sales Volume million tons 21.99 21.82 ↓ 0.8% Total Operating Income billion RMB 190.03

March 2015

Baoshan Iron & Steel Co.,Ltd.2014 Full Year Results

Disclaimer

The following presentation distributed herewith includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Baoshan Iron & Steel Co.,Ltd.(Baosteel) expects or anticipates will or may occur in the future are forward-looking statements.

Baosteel’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, competition and other risks and factors beyond our control.

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2014201420142014 RRRResultsesultsesultsesults

Industry Dynamics

2015 Operational Plan

Content

Operation OverviewOperation OverviewOperation OverviewOperation Overview

Unit 2013 2014 YoYSales Volume million tons 21.99 21.82 ↓ 0.8%

Total Operating Income billion RMB 190.03 187.79 ↓ 1.2%

Operating Cost billion RMB 171.72 168.93 ↓ 1.6%

Gross Profit billion RMB 18.07 18.60 ↑ 2.9%

Gross Margin % 9.51 9.90 ↑ 4.1%

Total Profit billion RMB 8.01 8.28 ↑ 3.3%

Income Tax billion RMB 1.97 2.19 ↑ 11.1%*

Net Profit billion RMB 5.82 5.79 ↓ 0.5%

Net Profit Margin % 3.06 3.08 ↑ 0.7%

EPS RMB/share 0.35 0.35 -

BVPS RMB/share 6.70 6.94 ↑ 3.6%

Net CFO per share RMB/share 0.73 1.72 ↑ 135.6%*

Weighted ROE % 5.29 5.16 ↓ 2.5%

Leverage % 47.1 45.7 ↓ 3.0%Note：（1）Reasons for income tax increase：total profit increase；reversal of Baotong mill’s DTA due to its shut down; （2）Reasons for CFO increase：the Company launched working capital management mechanism, reduced inventory capital occupation and strengthened linkage between procurement and sales.

Crude Steel OutputCrude Steel OutputCrude Steel OutputCrude Steel Output

Unit: Unit: Unit: Unit:

million tonsmillion tonsmillion tonsmillion tons

2014201420142014 YoYYoYYoYYoY

OutputOutputOutputOutput 21.53 ↓ 2.1%

23.00

22.0021.53

2012 2013 2014

Sales of Finished ProductsSales of Finished ProductsSales of Finished ProductsSales of Finished Products

Unit:Unit:Unit:Unit:

million tonsmillion tonsmillion tonsmillion tons


SalesSalesSalesSales 21.82 ↓ 0.8%

Including:Including:Including:Including:

exportexportexportexport

2.27 ↑ 17.7%

Sales of Only One and Number One products: 12.88 million tons 7.4%7.4%7.4%7.4%

23.57

21.99 21.82

2012 2013 20142.34 1.92 2.27

Sales BreakdownSales BreakdownSales BreakdownSales Breakdown

PlatePlatePlatePlate 6%6%6%6%

HRCHRCHRCHRC 37%37%37%37%

CRCCRCCRCCRC 45%45%45%45%

OthersOthersOthersOthers 5%5%5%5%

TubeTubeTubeTube 7%7%7%7%

Total Operating IncomeTotal Operating IncomeTotal Operating IncomeTotal Operating Income


billion RMBbillion RMBbillion RMBbillion RMB


IncomeIncomeIncomeIncome 187.8 ↓ 1.2%

191.5 190.0 187.8

2012 2013 2014

Operating CostOperating CostOperating CostOperating Cost

Unit:Unit:Unit:Unit:



CostCostCostCost 168.9 ↓ 1.6%

176.9171.7

168.9

2012 2013 2014

Gross ProfitGross ProfitGross ProfitGross Profit




Gross ProfitGross ProfitGross ProfitGross Profit 18.6 ↑ 2.9%

Gross MarginGross MarginGross MarginGross Margin 9.9% ↑ 4.1%

14.418.1 18.6

7.5% 9.5% 9.9%2012 2013 2014

Revenue and Gross Revenue and Gross Revenue and Gross Revenue and Gross MarginMarginMarginMargin

----Steel Steel Steel Steel BusinessBusinessBusinessBusiness




GrossGrossGrossGross

MarginMarginMarginMargin

YoYYoYYoYYoY

SteelSteelSteelSteel MakingMakingMakingMaking 120.6 ↓ 6.0% 10.0% ↑ 0.5 ppts

DistributionDistributionDistributionDistribution 163.1 ↓ 8.7% 2.6% ↑ 0.4 ppts

128.3

178.7

120.6

163.1

钢铁制造加工配送2013 2014Steel making Distribution




GrossGrossGrossGross

MarginMarginMarginMargin

YoYYoYYoYYoY

EEEE----commercecommercecommercecommerce 15.1 ↑ 331% 0.5% ↓ 0.6 ppts

ChemicalsChemicalsChemicalsChemicals 9.2 ↓ 15.7% 8.9% ↓ 0.6 ppts

ITITITIT 4.1 ↑ 13.7% 28.0% ↑ 4.2 ppts

FinanceFinanceFinanceFinance 0.6 ↑ 6.0% 53.0% ↓ 0.6 ppts

3.5

10.9

3.6

0.6

15.1

9.2

4.1

0.6电子商务化工信息科技金融2013 2014

Revenue and Gross Revenue and Gross Revenue and Gross Revenue and Gross MarginMarginMarginMargin

----Diversified Diversified Diversified Diversified BusinessBusinessBusinessBusiness

E-commerce Chemicals IT Finance

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----best performancebest performancebest performancebest performance

Maintain price premiumMaintain price premiumMaintain price premiumMaintain price premium

20003000400050006000

1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月公司热轧价格公司冷轧价格国内热轧价格国内冷轧价格

2014201420142014：

HRCHRCHRCHRC average price 11%11%11%11%

Domestic

CRC CRC CRC CRC average price 10%10%10%10%

HRCHRCHRCHRC average price 5%5%5%5%

Baosteel

CRCCRCCRCCRC average price 3%3%3%3%Data source：CISA, Company statisticsJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecBaosteel HRC priceDomestic HRC price Baosteel CRC priceDomestic CRC price

Note：according to the statistics of median-large sized steel mills from CISA

crude steel output

proportion

3.3%

Total profit

contribution

27%

Maintain best performance Maintain best performance Maintain best performance Maintain best performance

in domestic sectorin domestic sectorin domestic sectorin domestic sector

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----best performancebest performancebest performancebest performance

Total energy consumption

decreased by 454,000 tons

standard coal YoY

Photovoltaic power generation of

39.0939.0939.0939.09 million kwh

Domestic firstfirstfirstfirst steel mill recommended

by international certification

authority-”British Standard

Institution” for being certified by “electrical hazardous substance

management system”

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----environmentenvironmentenvironmentenvironment----friendlyfriendlyfriendlyfriendly

Issue

《《《《Baosteel 2013Baosteel 2013Baosteel 2013Baosteel 2013----2018201820182018 Green Green Green Green

Manufacturing PlanManufacturing PlanManufacturing PlanManufacturing Plan》》》》

Develop environment-friendly business

based on managementmanagementmanagementmanagement, skillskillskillskill and

technologytechnologytechnologytechnology

Build green industry chaingreen industry chaingreen industry chaingreen industry chain:

Defined a control list of hazardous control list of hazardous control list of hazardous control list of hazardous

substancessubstancessubstancessubstances in over 300 purchased

materials;

Form the Company’s first “list of list of list of list of

customers’green demandscustomers’green demandscustomers’green demandscustomers’green demands”

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----environmentenvironmentenvironmentenvironment----friendlyfriendlyfriendlyfriendly

World debut World debut World debut World debut

of 5 new products,

including

QP1180CR,a new

generation of auto

sheet

acquired

“Most Admired Most Admired Most Admired Most Admired

Knowledge Knowledge Knowledge Knowledge

Enterprise in Enterprise in Enterprise in Enterprise in

AsiaAsiaAsiaAsia”for 3 consecutive years, the only domestic manufacturing enterprise to win this title

“Innovative Development and Application of 600℃ Ultra-supercritical Thermal Power Generating Unit Steel Pipe” won the First Prize of National First Prize of National First Prize of National First Prize of National

Science and Technology ProgressScience and Technology ProgressScience and Technology ProgressScience and Technology Progress

“Development and Industrialization of High Grade Non-oriented Silicon Steel Manufacturing Technology”won the First Prize of Shanghai Science and Technology Progress

“R&D of Core Process and Set Equipment of Cold Rolling Hot-dip Aluminum-zinc Unit”won the First Prize of Metallurgy Science and Technology

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----technology innovationtechnology innovationtechnology innovationtechnology innovation

Acquired

“Excellent SupplierExcellent SupplierExcellent SupplierExcellent Supplier”

from customers

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----Customer RecognitionCustomer RecognitionCustomer RecognitionCustomer Recognition

Won the bid of Won the bid of Won the bid of Won the bid of

International Natural International Natural International Natural International Natural

Gas Pipeline Project Gas Pipeline Project Gas Pipeline Project Gas Pipeline Project

---- TANAPTANAPTANAPTANAP

BaosteelBaosteelBaosteelBaosteel will supply will supply will supply will supply 370KM370KM370KM370KM

UOEUOEUOEUOE pipespipespipespipes

Acquired allAcquired allAcquired allAcquired all 120 thousand120 thousand120 thousand120 thousand

tons plate order of tons plate order of tons plate order of tons plate order of

World’s largest LNG World’s largest LNG World’s largest LNG World’s largest LNG

project project project project ---- YamalYamalYamalYamal

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----Market ExplorationMarket ExplorationMarket ExplorationMarket Exploration

� #1 blast furnace main structure roof sealing was finished ahead of roof sealing was finished ahead of roof sealing was finished ahead of roof sealing was finished ahead of

scheduleschedulescheduleschedule，supporting facilities started installation

� Main Main Main Main construction pile foundation construction pile foundation construction pile foundation construction pile foundation completedcompletedcompletedcompleted

� Entered the phase of plant steel structure and facilities installationplant steel structure and facilities installationplant steel structure and facilities installationplant steel structure and facilities installation

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----Zhanjiang ProjectZhanjiang ProjectZhanjiang ProjectZhanjiang Project

Domestic first banking chattel

mortgage platform -

“Shanghai Banking Chattel Mortgage

Information Platform” was put into

operation in March,2014

• So far has signed cooperation

agreement with 14141414 banks

In 2014，Shanghai Steel Trading Center：

• 4.514.514.514.51 million tons trade volume

• 33333333 thousand registered users

• Revenue RMB 15.115.115.115.1bn， 331% 331% 331% 331% YoY

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----EEEE----commercecommercecommercecommerce

Baosight(cloud service and

solutions)became FirstFirstFirstFirst

enterprise to acquire

National Standardization National Standardization National Standardization National Standardization

Qualification CertificationQualification CertificationQualification CertificationQualification Certification

Signed strategic

cooperation agreement

with China Mobile in

customized data centercustomized data centercustomized data centercustomized data center

Provide data processing

support to Alibaba for Online

Shopping Festival(sales

revenue RMB 57.1bn57.1bn57.1bn57.1bn) on 11

Nov. 2014

Launched the largest largest largest largest

cloud computing data cloud computing data cloud computing data cloud computing data

centercentercentercenter in Shanghai-Bao

Cloud IDC Phase I

Bao Cloud IDC Phase II

started

Big data and Cloud Big data and Cloud Big data and Cloud Big data and Cloud

Computing Computing Computing Computing business business business business

developmentdevelopmentdevelopmentdevelopment

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----ITITITIT

“best Board of Directors –Golden Roundtable Award”-- Directors&Boards

“best Invest Relations in mainboard”-- Great Wisdom Finance Award

“2013 Level A Company in Information Disclosure”

--Shanghai Stock Exchange

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----capital marketcapital marketcapital marketcapital market

S&P, Moody’s and Fitch assigned

highest credit ratings in global steel highest credit ratings in global steel highest credit ratings in global steel highest credit ratings in global steel

industry industry industry industry to Baosteel

Interest convergence between key employees and investors:

Top management and key technicians - Stock incentive PlanStock incentive PlanStock incentive PlanStock incentive Plan

Middle management and key position employees –

Asset Management PlanAsset Management PlanAsset Management PlanAsset Management Plan

Highly recognized by the international capital

market, successfully issued 500mn 3successfully issued 500mn 3successfully issued 500mn 3successfully issued 500mn 3----year Euro year Euro year Euro year Euro

BondBondBondBond

Optimize debt structure and diversify funding

channels

Operation HighlightsOperation HighlightsOperation HighlightsOperation Highlights----capital marketcapital marketcapital marketcapital market

Stock Stock Stock Stock

IncentiveIncentiveIncentiveIncentive

HighestHighestHighestHighest

RatingsRatingsRatingsRatings

Euro BondEuro BondEuro BondEuro Bond

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2014 Results

Industry DynamicsIndustry DynamicsIndustry DynamicsIndustry Dynamics

2015 Operational Plan

Content

Macro EconomyMacro EconomyMacro EconomyMacro Economy

9.5%7.7% 7.7% 7.4% 7.0%

2011 2012 2013 2014 2015目标

GDP CPI5.4%2.6% 2.6% 2.0% 3.0%

2011 2012 2013 2014 2015目标• GDP up 7.4% in 2014, economy growth

continued to slow down.

• GDP growth met expectation under domestic economy’s New Normal.

• GDP growth targets at 7.0% in 2015, structure optimization is still the top priority.

• CPI up 2.0% in 2014. Stable and mild growth in price.

• CPI growth targets at 3.0% in 2015.

• Prudent monetary policy will continue.

Data source: National Bureau of Statistics2015 target 2015 target

Demand and Supply AnalysisDemand and Supply AnalysisDemand and Supply AnalysisDemand and Supply Analysis----SupplySupplySupplySupply

Crude Steel Output and Apparent Consumption

724 816 823680 765 7392012 2013 2014粗钢产量表观消费

Unit: million tons 2014 YoY

Output 823 ↑ 0.9%Net export 84 ↑ 65.6%Apparent

consumption 739 ↓ 3.4%

• Crude steel output was 823mn tons in 2014, up 0.9% YoY, growth rate sharply declined.• Output maintained high position and concentration rate was still quite low. Top 10 players accounted for 36.6% of domestic total output, down 2.8 ppts YoY.• MIIT disclosed draft “Steel Industry Adjustment Policy” on 20 March, which aimed to solve the industry dilemma and promote healthy development.• Crude steel output growth slowed down, while export increased significantly, leaving apparent consumption a negative growth.

Data source: National Bureau of Statistics, Customs Statistics

Crude steel output Apparent Consumption

Steel Industry FAIUnit: billion RMB505.5 506.0 478.92012 2013 2014黑色金属行业FAI 累计同比

-2.0% -2.1%-5.9%

• Steel industry FAI was RMB 478.9bn in 2014, down 5.9% YoY, decreased for 3 consecutive years.• According to MIIT, new projects declined by 10%.

Data source: Wind

Demand and Supply AnalysisDemand and Supply AnalysisDemand and Supply AnalysisDemand and Supply Analysis----SupplySupplySupplySupply

Steel industry FAI Ytd, YoY

Net Export of Steel ProductsUnit: million tons42.07 48.26

79.35

2012 2013 2014

• In 2014, China exported 93.78mn tons(+50.5% YoY); imported 14.43mn tons(+2.5% YoY). Net export were 79.35mn tons, up 64.4% YoY, breaking a new record.

• Average export price was USD 755/ton, down 11.6% YoY.

• With the cancelation of tax rebate in main categories of Boron steel and the frequent international trade frictions, export growth is expected to get eased in 2015.

Data source: Custom Statistics

Demand and Supply AnalysisDemand and Supply AnalysisDemand and Supply AnalysisDemand and Supply Analysis----Import & ExportImport & ExportImport & ExportImport & Export

FAI Unit: trillion RMB

Data source: Wind

36 44 50

2012 2013 201420.6% 19.6% 15.7%

• FAI totaled RMB 50 trillion in 2014, up 15.7% YoY, growth continued to slow down.

Demand and Supply AnalysisDemand and Supply AnalysisDemand and Supply AnalysisDemand and Supply Analysis

----Demand(infrastructure)Demand(infrastructure)Demand(infrastructure)Demand(infrastructure)

Investment New Start and Sales GrowthUnit: trillion RMB

Data source: Wind• Investment grew at 10.5% YoY in 2014, growth rate in downward trend.• Large decrease in both new start and sales.• Large policies change are expected in 2015, including real estate registration,

purchase and mortgage policies etc.

7.2 8.6 9.516.2% 19.8% 10.5%2012 2013 2014 -7.3%

13.5%-10.7 %

1.8 %17.3%

-7.6 %2012 2013 2014房屋新开工商品房销售


----Demand(real estate)Demand(real estate)Demand(real estate)Demand(real estate)

New start Sales

Output SalesUnit: million units

Data source: CAAM• Output and sales were 23.72, 23.49mn units, up 7.3% and 6.9% YoY respectively in 2014, growth

slowed down.• Passenger car sales up 9.9% YoY, outperformed commercial car(down 6.5% YoY).• New energy auto’s strong performance: output and sales up 350% and 320% respectively in

2014.• We expect 2015 auto sales to grow at 6%, considering macro economy and auto purchase

restriction.

19.27 22.12 23.72

4.6%14.8% 7.3%

2012 2013 2014

19.31 21.98 23.49

4.3%13.9% 6.9%

2012 2013 2014


----Demand(auto)Demand(auto)Demand(auto)Demand(auto)

Unit: million units

Washing MachineUnit: million units Refrigerator

Air-conditioner TV

Data source: Wind• Washing machine and refrigerator output growth decreased, while air-conditioner and TV grew fast in 2014.• Consumption upgrade will continue, and industry development will be driven by structure upgrading.• Expected growth rate of white goods in 2015: 0-5% for washing machine and refrigerator, 8% for air-conditioner.

67.42 72.02 71.141.4%

8.2%-3.3%

2012 2013 2014

84.27 93.41 93.37-3.1%

10.6%-1.0%

2012 2013 2014

132.8 143.3 157.24.9% 11.6% 11.5%2012 2013 2014

139.7 140.3 155.47.5% -0.2% 6.2%2012 2013 2014


----Demand(home appliances)Demand(home appliances)Demand(home appliances)Demand(home appliances)Unit: million units

Unit: million units Unit: million units

Value Added Growth, YoY

Data source: National Bureau of Statistics

• Volatility trend in machinery in 2014, transportation equipment outperformed other sub-sectors.

• The industry was heavily influenced by the macro economy, new growth might not offset the negative impact of the contraction in traditional areas.

• Growth is expected stable in 2015, industry average 9.5%.

-5%5%15%25%

2013年 13年5月 13年8月 13年11月 14年3月 14年6月 14年9月 14年12月

通用设备制造业专用设备制造业电气机械及器材制造业铁路、船舶、航空航天等运输设备制造业


----Demand(machinery)Demand(machinery)Demand(machinery)Demand(machinery)

General EquipmentSpecial EquipmentElectrical EquipmentTransportation Equipment2013 May Aug Nov 2014 Mar Jun Sep Dec

CompletionUnit: million tonnages

Data source: CANSI

• Completion, new order and carrying order were 39.05(-13.9% YoY), 59.95(-14.2% YoY) and 149(+13.7% YoY)mn tonnages respectively in 2014. New order and carrying order declined on a large scale in Q4.

• Due to the over-capacity in shipping market, freights are expected to remain low and demand still weak in 2015.

02004006008001000

1-2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月2012 2013 2014


----Demand(ship building)Demand(ship building)Demand(ship building)Demand(ship building)

1086420 Jan-Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Steel InventorySteel InventorySteel InventorySteel Inventory

Social Inventory Steel Mills InventoryUnit: million tons

Data source: Mysteel Data source: CISA• Social inventory peaked at 20.86mn tons in Feb,

2014, up 54% Ytd.• Destocking since Mar and dropped below 10mn

tons in Nov.• Restocking since 2015, but still down 22% YoY on

28 Mar.

• As transferred from social inventory, steel mills inventory was in upward trend, up 4% YoY and up 31% Ytd in early March, 2015.

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Unit: million tons2520151050 2014 Mar May Jul Sep Nov 2015 MarTotal Long Products Flat Products

2015105 2014 Mar May Jul Sep Nov 2015 Mar

Platts（62% Fe） Coke and Scrap Price

Data source: Wind• Imported iron ore 930mn tons in 2014, up 14% YoY. Average import price USD 100.4/ton, down

22.5% YoY.• Platts decreased rapidly in 2014, due to the abundant supply, depressed demand and port

inventory destocking pressure. Platts reached 5-year bottom level in 2014.• Entering 2015, Platts still in downward trend. In early March, Platts dropped below USD 60/ton

for the first time since 2009.• Iron ore price is expected USD 50-70/ton in 2015.• Coke price is still in downward trend and expected to continue in 2015.

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1月 2月 3月 5月 6月 7月 9月 10月 12月2013 2014 2015

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14年1月 14年3月 14年6月 14年9月 14年12月 15年3月焦炭废钢

Unit: RMB/tonRaw MaterialRaw MaterialRaw MaterialRaw Material

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Mar May Jul Sep Nov 2015 Mar Coke Scrap

Iron Ore InventoryIron Ore InventoryIron Ore InventoryIron Ore Inventory

Port Inventory Unit: million tons

Data source: Mysteel

• Port inventory increased rapidly and broke 100mn tons in Feb 2014.

• Growth slowed down recently, but remained high position, 100mn tons by 27 Mar 2015, down 10% YoY.020004000600080001000012000

14年1月 14年3月 14年6月 14年8月 14年11月 15年2月Total Australia Brazil India

1201008060402002014 Mar May Jul Sep Nov 2015 Mar

Steel MarketSteel MarketSteel MarketSteel Market

HRC, CRC and Rebar Price CRC Products PriceUnit: RMB/ton

Data source: Wind• Due to weak downstream demand and losing support from raw material, steel price was

depressed in 2014. Rebar price declined by more than 20%, HRC and CRC declined over 10% each.

• Benefiting from larger decrease in raw material cost, steel industry profit improved quarter by quarter in 2014.

• Median-large sized steel mills’ sales margin was 0.85% in 2014, up 0.26ppts YoY and number of loss making mills dropped to 15% of total, down 4.5ppts YoY.

2000

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14年1月 14年3月 14年5月 14年7月 14年9月 14年11月 15年1月 15年3月热轧3.0 冷轧1.0 螺纹钢HRB400

Unit: RMB/ton

2014 Mar May Jul Sep Nov 2015 MarHRC 3.0 CRC 1.0 Rebar HRB400 3000

4000

5000

6000

7000

8000

14年1月 14年3月 14年5月 14年7月 14年9月 14年11月 15年1月 15年3月CRC 1.0 Galvanized 1.0 Prepainted 0.476 Silicon 600

2014 Mar May Jul Sep Nov 2015 Mar

1

2

3

2014 Results

Industry Dynamics

2015201520152015 Operational PlanOperational PlanOperational PlanOperational Plan

Content

Operational TargetOperational TargetOperational TargetOperational Target

Rank TOP 3 in world steel industry in total profit/ton

CAPEX plan: RMB 24.7bn

Including Zhanjiang Project:

RMB 16.0bn

Sales of Only One and Number One products:

12mn tons

(1) Crude Steel: 23.6mn tons

(2) Finished Products: 23.0mn tons

(3) Total operating income: RMB 194bn

(4) Operating cost: RMB 176bn

Sep 2015: ignition of #1

blast furnace

Zhanjiang ProjectZhanjiang ProjectZhanjiang ProjectZhanjiang Project

Nanjing base (Meishan Steel)Shanghai headquartersZhanjiang Project: build the world’s most

efficient steel millShanghai, Nanjing, Zhanjiang: synergy in 3 manufacturing

bases

Zhanjiang

Zhanjiang Project

EnvironmentEnvironmentEnvironmentEnvironment----friendlyfriendlyfriendlyfriendly

� Total energy saving at least 85 thousand standard coal

� Indoor coal yard construction in Shanghai base� Overhaul project of phase I coke oven� Overhaul project of No.3 sintering furnace in

iron making plant… …

Philosophy of environment protection and building clean factoriesBuild 3 environment-friendly bases of Shanghai, Nanjing and Zhanjiang

Steel Business UpgradeSteel Business UpgradeSteel Business UpgradeSteel Business Upgrade----Wisdom ManufacturingWisdom ManufacturingWisdom ManufacturingWisdom Manufacturing

Application and interaction of Internet of Things, Cloud Computing and Big Data

Decision analysis is transformed from Data Warehouse to Big Data Center; supply chain is changed from part coordination to overall optimization

Equipments evolve from automation to intelligence

利用智慧制造智慧制造智慧制造智慧制造

构建公司领先

的新优势

2

1

3

EEEE----commerce Developmentcommerce Developmentcommerce Developmentcommerce Development

Jointly found Ouyeel Commerce Co.,Ltd.

Baosteel(listed company)

Baosteel Group (parent company)

Capital contribution: RMB 1.02bnShareholding: 51%

Capital contribution: RMB 980mn Shareholding: 49%

OuyeelFinancialService Shanghai Steel Trading Center

OuyeelMaterial

OuyeelData

OuyeelLogistics

Documents

Baoshan Iron & Steel Co.,Ltd. 2014 Full Year Results · Operation Overview Unit 2013 2014 YoY Sales Volume million tons 21.99 21.82 ↓ 0.8% Total Operating Income billion RMB 190.03