IFGL Refractories Limited

An Indian Multi-national

Page 2

Disclaimer

Certain statements in this presentation concerning our future growth prospects, are forward looking statements, which involves a number of risks and uncertainties that may cause actual results to differ materially from those in such forward looking statements. Risk and uncertainties relating to these statements include and are not limited to risk and uncertainties relating to fluctuations in sales, earnings, our ability to manage growth, intense competition, our ability to manage operations, fluctuations in demand, our ability to successfully complete and integrate potential acquisitions, performance of our subsidiaries, political instability and changes in legal restrictions and general economic conditions affecting our industry. The Company may from time to time make additional written and or oral forward looking statements. 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.

Page 3

IFGL Refractories Highlights

• One of the best known Special Refractory Manufacturer of India

• Largest exporter of Refractories from India

• Crossed Rs 1000 Million Export in 2007-08

• Recipient of CAPEXIL Special Export Award for Refractories for five successive years

• Star Export House –recognised by Ministry of Commerce

• Quality System certified- BS EN ISO 9001: 2000

• Reputed for introducing new technology products in India

• Uninterrupted Dividend paying (since 2002-03)

Page 4

Industry Scenario & Opportunities

Page 5

Refractory Industry Overview

74%

12%

4%3%

7%

SteelCement GlassNon ferrousOthers

End use- segments

5%

37%

12%

26%

16%

4%

Rest of World

China

RestOfAsia

Europe

US

I ndia

Global Refractory Production World Steel

Crude Steel Production

2007 – 1,343 million tonnes growth of 7.5%

2006 – 1,244 million tonnes growth of 8.9%

2005 – 1,142 million tonnes

Page 6

World Steel – on growth path after consolidation

World Crude Steel Production

755 799 777 789 848 850 904 9701069 1142

12441344

0

200

400

600

800

1000

1200

1400

1600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Million MT

World Steel Production growth %

0.2%

6.4%7.3%

10.2%

6.8%

8.9%8.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2001 2002 2003 2004 2005 2006 2007

growth %

Page 7

Global Market Opportunities for Refractories

• BRIC led growth has revitalised Steel Industry-BRIC’s share in world production grown from 31% in 2001 to 48.2% in 2007

• Strong growth expected to continue as Steel consumption still very low in Developing regions

• Increased demand for Special Refractories, being consumable to Steel Industry

• Limited competition for Special Refractories

• Buoyant outlook for Steel Industry, both in Indian and Overseas markets

Steel Scenario

Page 8

•Resources

•Abundant Iron Ore reserves•Strong Managerial skills in Iron and Steel making•Large pool of skilled Man-power•Established steel players with strong skills in steel making

•Pro-active stance of Govt.•Encouragement for overseas investments

•High economic growth driven by industry•Faster Urbanisation•Increased Infrastructure Asset Building•Automobiles and component industry growth

•Opportunities

•Policy

Indian Steel Industry – a bright future

•DevelopmentsSAIL,TISCO, ESSAR,JSW have announced ambitious Capacity expansion plansArcelor Mittal and POSCO major International players coming to India

YearSteel

production % Growth

  Mln tons  

2002-03 34.7  

2003-04 38.7 11.53%

2004-05 43.4 12.14%

2005-06 46.5 7.14%

2006-07 50.7 9.03%

Page 9

Steel production- Current production & Planned capacity

Current (2005-

06)Planned

Current (2005-

06)Planned

SAIL 13.5 26.0 POSCO (Orissa) 12.0RINL (Vizag) 3.5 10.0 Arcelor Mittal (Orissa) 12.0Tata Steel (Jamshedpur) 4.7 10.0 Arcelor Mittal (Jharkhand) 12.0Tata Steel (Orissa) 6.0 Mukund 0.8 2.8Tata Steel (Jharkhand) 12.0 Jindal Stainless ,JSL 0.6 1.2Tata Steel (Chattisgarh) 5.0 Jindal Stainless ,JSL, Dubri 1.6Essar (Hazira) 2.5 7.5 Bhusan (Orissa) 2.8Essar (Orissa) 4.0 Bhusan (Jharkhand) 3.0Essar (Jharkhand) 6.0 JSPL (Chattisgarh) 1.2 2.4Essar (Chattisgarh) 3.2 JSPL (Orissa) 6.0JSW (Vijaynagar) 3.5 10.0 JSPL (Jharkhand) 5.0JSW (West Bengal) 10.0 Jayaswal NECO 0.6 2.0JSW(Salem) 0.3 2.0 EAF/IF/Others 13.0 20.5Ispat 2.2 5.0

Total Crude Steel 46.4 200.0

3943 46

5156

62

70

200

0

20

40

60

80

100

120

140

160

180

200

FY 04 FY 05 FY 06 FY 07E FY 08E FY 09E FY 10E FY 20E

Steel Production (Mn Tons)

Page 10

SAIL

Tata SteelRINL

MittalPOSCO

JSPL

EssarBhushan

JSWIspat

Proposed state-wise New Capacity

J’khand: 38 mtpa

W Bengal: 14 mtpa

Ch’garh: 9 mtpa

Orissa :50 mtpa

AP: 3.3 mtpa

Karnataka: 9.7 mtpa

IFGL Plant

Page 11

IFGL - Introduction

Page 12

Brief history of IFGL Refractories

2006Acquired Goricon Group

1970s

1979Indo Flogates founded

1990s 2000s

1993IFGL

Refractories Founded

Collaboration with Harima Corp., Japan

1999Purchase of stake from Vesuvius

Indo Flogates merger with IFGL Refractories

2005Acquired Monocon Group

1980s

•Manufacture of Flocon Slide Gate Mechanism & refractories

•Manufacture of Slide Gates for Furnace and convertors

•Manufacture of Continuous Casting Refractories started

•Manufacturing IPV Porous Plug started

•Export Thrust

•Lances

•Darts

•Monolithics

•Castables

2000Awarded ISO 9001

1983

Collaboration with Flogates UK

Page 13

Highly efficient international manufacturing operations . . .

Monocon International RefractoriesDenaby, UK

Mono Ceramics Inc Michigan, US

Monotec Refratarios Fortaleza, Brazil

Tianjin Monocon Tianjin, China

IFGL Refractories India

Page 14

Products:•Continuous Casting refractories

•Slide Gate system & refractories

•Ladle bottom Porous Plugs

•Tap Hole Sleeves

•Furnace Gate & refractories

•Cast Products

•Monolithics/Castables

•ZIRCON & Zirconia Nozzles

Works:

Sector ‘B’

Kalunga Industrial Estate

P.O. Kalunga – 770 031

District – Sundargarh

Orissa - India

IFGL Refractories

Corporate Office:

Mcleod House

3, N S Road

Kolkata-700001

India

Technical Collaborator:

Krosaki Harima Corporation, Japan

(A Subsidiary of Nippon steel)

Page 15

Production Facilities- UK & America

Office & Works:Davy Road, Old Denaby, South Yorkshire, UK

• ISO 9001 accreditation

• Products– Lances– Tundish spray

products– Slag control darts– Other Monolithics

• Engineering Products– Slag control Dart

machines– Ladle & EF Monocators– Tundish spray

machines– SPV

• Office and works:Pipestone RoadBenton HarborMichigan 49022USA

• ISO 9001 accreditation

• Products– Lances – Precast &

Castables– Purge Plugs

• Office in Sao Paulo

• Works: Av. Jandira, 316-Conj.4 Cep 04080-001 Sao Paolo Brazil

• Products – Tundish spray– Precast– Castables

Page 16

Production Facilities- China

•

•Office & Works:Tianjin Economic Development AreaTianjin 300457 P R China

• Products - Slag Control Darts - Cast Products - Purge Plugs

• Office & Works:Tianjin Economic Development AreaTianjin 300457 P R China

• Products - Monolithics

New plant

Page 17

Italy SwedenRomania & Slovakia

GermanyFrance

UK Poland

S.Africa

USA, Canada, Mexico

Turkey

Iran

Egypt

Aus, NZ

Malayasia

Worldwide Marketing Network

Marketing offices/ Works Agents

Russia

Chile

Ukraine

Page 18

• Current

KROSAKI HARIMA CORP.,JAPAN

New Generation Slide Gate Systems

Continuous Casting Refractories

ALCAR INTERNATIONAL, U.K

Tube Changer device for Slab Caster

Technical Know How

Page 20

IFGL - Performance

Page 21

Consolidated OperationsRs Million

Financial Results for Year ended 31/3/08

Particulars 31-Mar-07 31-Mar-08 Change-%

Net Sales 3226.95 3780.07 17.14%

EBITDA 499.44 553.67 10.86%

Profit ( + ) / Loss ( - ) before Tax 372.05 408.88 9.90%

Net Profit ( + ) / Loss ( - ) after tax 262.37 284.88 8.58%

EBITDA Margin 15.48% 14.65%PBT Margin 11.53% 10.82%PAT Margin 8.13% 7.54%

EPS 7.58 8.23

Page 22

Standalone Operations

Rs Million

Financial Results for Year ended 31/3/08

Particulars 31-Mar-07 31-Mar-08 Change-%

Net Sales 1508.19 1713.42 13.61%

EBITDA 332.32 356.88 7.39%

Profit ( + ) / Loss ( - ) before Tax 252.61 261.69 3.60%

Net Profit ( + ) / Loss ( - ) after tax 163.91 168.51 2.81%

EBITDA Margin 22.03% 20.83%PBT Margin 16.75% 15.27%PAT Margin 10.87% 9.83%

EPS 4.74 4.87

Page 23

Overseas Operations

Rs Million

Financial Results for Year ended 31/3/08

Particulars 31-Mar-07 31-Mar-08 Change-%

Net Sales 1718.76 2066.65 20.24%EBITDA 167.12 196.79 17.75%Profit ( + ) / Loss ( - ) before Tax 119.44 147.19 23.23%Net Profit ( + ) / Loss ( - ) after tax 98.46 116.36 18.18%

EBITDA Margin 9.72% 9.52%PBT Margin 6.95% 7.12%PAT Margin 5.73% 5.63%

EPS 2.84 3.36

Page 24

IFGL Group - Strong financial performance

• Strong growth in Sales • Highly cash generative – EBITDA Rs 55 crores yearly and growing

Financial performance (year ended 31 March)

0

Rs M

illi

on

0

Rs M

illi

on

Turnover 741.4 930.3 1129.2 2307.2 3226.9 3780

EBITDA 121.6 178.9 225.5 363.1 499.4 553.6

EPS (Rs) 0.86 2.49 3.45 5.37 7.58 8.23

2003 2004 2005 2006 2007 2008

Page 25

IFGL Refractories, India

YEAR 01-02 02-03 03-04 04-05 05-06 06-07 07-08 EXPORT 112 339 497 688 752 870 1011

TURNOVER 454 741 930 1129 1303 1508 1713

0

200

400

600

800

1000

1200

1400

1600

1800

VA

LU

E(R

s M

illio

n)

01-02 02-03 03-04 04-05 05-06 06-07 07-08

FINANCIAL YEAR

EXPORTS & TOTAL TURNOVER

EXPORT

TURNOVER

Page 26

Global Market Opportunities for Refractories Geographical distribution - Steel Production & IFGL Group sales

Steel ProductionMillion MT

India 53Europe 365Asia (excl India) 701Americas 180Others 44

1343

Steel production

4%

19%

50%

14%

13% India

Europe

Asia (excl India)

Americas

Others

SalesRs million

India 708Europe 1363Asia (excl India) 422Americas 761Others 525

3780

Sales- Geographical

20%

32%

12%

23%

13%India

Europe

Asia (excl India)

Americas

Others

Page 27

Achievements 2007-08

• New Dart Plant started operating in China

• New Product introductions:– Full range of Castables– Zirconia nozzles

• Integration of Goricon Production facilities into Monocon to achieve Cost efficiencies

• All overseas subsidiaries generating profits

• Continued enhancement of Kalunga Plant capacity

• Expansion of Marketing network

Page 28

CAPEX

Capital Expenditure

51.3

106.4

45.9

106.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2004-05 2005-06 2006-07 2007-08

Rs M

illio

n

Capital Expenditure

Page 29

Capacity- India

Capacity Shaped (Pcs)

384900

756000

564900

624900

720900 720900

300000

400000

500000

600000

700000

800000

02-03 03-04 04-05 05-06 06-07 07-08

Capacity Unshaped (MT)

24000

10001000700300300

0

5000

10000

15000

20000

25000

30000

02-03 03-04 04-05 05-06 06-07 07-08

Page 30

Capacity- Global

Location Company Product UnitsCapacity per annum

India IFGL Refractories Ltd.

Carbon Bonded Refractories for Continuous Casting pcs 360000Slide Gate Refractories pcs 300000Purge Plugs pcs 24000Cast Products pcs 72000Unshaped/ Castables etc. MT 24000

UK Monocon International Refractories LimitedLances pcs 10800Darts pcs 240000Unshaped MT 30000

USA Mono Ceramics IncLance pcs 12000

Brazil Monotec Refratarios LtdaUnshaped MT 6000

China Tianjin Monocon Refractories Co LimitedUnshaped MT 24000

China Tianjin Monocon Aluminous Refractories Co LimitedDarts pcs 180000

Page 31

Future Outlook

Page 32

IFGL Refractories Shareholding Pattern & Dividend History

Public14.94%

Promoters56.83%

Sojitz Corp.9.90%

Krosaki Harima4.57%

Mutual Funds / institutions

13.76%

Listed on:

•Bombay Stock exchange

•National Stock Exchange

Dividend

10.0%12.5%

15.0%17.5% 17.5%

20.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Page 33

Action Plan 2008-09

LIKELY SCENE

• Likely scarcity of Refractories due to:– Pressure on supply of Raw Materials– New Capacity / increase in Steel

Production

• Achieving full capacity utilisation in Kalunga(Rourkela) Plant

ACTION PLAN

•Full Utilisation of the new Dart Plant in China

•2nd shift operation of the Monolithic Plant in China

•Develop market of Zirconia nozzles and Castables

•Debottlenecking to take care of next 1/2 years

•New Plant for CC Refractories Planned in Kandla SEZ

Page 34

New Project CC Refractories at Kandla SEZ

• Existing plant running very close to full capacity

• Huge increase in demand expected due to high growth in Steel Industry

• Overseas Sales growing fast, driven by

– Group’s acquisitions of refractory companies in UK, USA, Brazil and China

– Resulting in logistical support and increased acceptance of IFGL products by overseas customers

• Port based plant in Western India will reduce transit time and reduce delivery cost to customers in Middle East and Europe

• Project to be implemented by IFGL Exports Ltd., a subsidiary of IFGL Refractories Ltd.

• Capacity planned 300000 pcs per annum (existing 360000 pcs) of CC products

• Project Cost Rs 500 Million

Kandla Existing plant at Rourkela

Page 35

SEZ Benefits

•Duty Benefits: SEZ units may import or procure from the domestic sources all their requirements of capital goods, raw materials, consumables, spares, packing materials, office equipment, DG sets etc. duty free.

•100% IT exemption (10A) for first 5 years and 50% for 5 years thereafter. Reinvestment allowance to the extend of 50% of ploughed back profits for further 5 years

•External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions.

•Flexibility to keep 100% of export proceeds in EEFC account. .

•Exemption from interest rate surcharge on import finance.

•Exemption to sales made from Domestic Tariff Area to SEZ units from Central Sales Tax.

•Exemption from Service Tax to SEZ units

Page 36

Progress- Kandla CC Project

• Land already acquired

• Key Personnel appointed

• Orders for Long delivery equipment placed

• Contractors / equipment suppliers being identified

Bhoomi puja being perfomed by company

senior executives

Page 37

Outlook for 2008-09

20%

25%

Sales Profit

Page 38

Thank You