Jindal Power

Copyright © 2010 Jindal Steel & Power Ltd.

Corporate PresentationMay 2011

Disclaimer

Certain statements in the presentations and, if applicable, the subsequent question and answer session and

discussions concerning our future growth prospects, are forward looking statements which involve a number of risks,

uncertainties and other factors that may cause our actual results, performance or achievements to differ materially

from future results, performance or achievements expressed or implied by such forward-looking statements. The

risks and uncertainties relating to these statements include, but are not limited to, general political, social and

economic conditions in India, Bolivia, and elsewhere, accidents, natural disasters or outbreaks of disease,

government policies regarding the steel ,power and diamond industry(ies), including industrial licensing,

environmental regulations, safety regulations, import restrictions and duties, excise duties and sales taxes, our

ability to successfully implement our strategy, our growth and expansion plans and technological changes,

increasing competition in, and the conditions of the global and Indian steel , power and diamond industry, changes

in laws and regulations that apply to the Indian and global steel, power and diamond industry, significant

movements in the prices of key materials, terms on which we finance our working capital and capital and product

requirements affecting our company and our industry and other development expenditure requirements, general

economic conditions factors beyond our control.

2

Jindal Steel & Power /

Jindal Power / Jindal

Shadeed

Steel

3 MTPA

Power

Generation

1,783 MW

Pellet Plant

5MTPA

Iron Ore &

Coal Mining

15 MTPA

Hot Briquetted

Iron

1.5 MTPA

Corporate Snapshot

FY 2010 - 11

Revenue : USD 2.9 Bn

Cash Profit : USD 1.13 Bn

3

4

Jindal Steel & Power Limited

Steel Plant, & 810 MW Power Plant at Angul, Orissa

6 MTPA

Inv. USD 5.4 Bn

Steel Plant, Patratu, Jharkhand

6 MTPA

Inv. USD 4.4 Bn

Steel Plant

Bolivia

2 MTPA

Inv. USD 2.1 Bn

Thermal Power, Chhattisgarh

2,400 MW

Inv. USD 2.9 Bn

Thermal Power, Jharkhand

1,980 MW

Inv. USD 2.4 Bn

Hydro Power, Arunachal Pradesh 6,100 MW

Inv. USD 8.1 Bn

Steel Plant, Raigarh, Chhattisgarh

3 MTPA

Inv. USD 2.6 Bn

Coal To Liquid

80,000 Barrels per day

Inv. USD 8.0 Bn

Current Expansion Plans

Steel business overview

Power business overview

Financial overview

Growth drivers

Sustainability Initiatives

5

Indian Steel Story

India „s share in World steel production was 2% in 1995. Current share 5%

With GDP expected to grow over 8-9%, Steel consumption is expected to grow over 10%

Huge demand coming from Power, Road and Infrastructure sector

Steel Production in India expected to go up tp 200 MTPA by 2020 from current 70 MTPA

In 11th plan GOI has a target of $500 Bn investment in Infrastructure (9% of GDP)

Steel consumption for this level of investment is about 145 Mn T

In 12th plan GOI has plans of $1,000 Bn investment in Infrastructure (estd. at 10% of GDP)

Steel consumption for this level of investment is over 350 Mn T

Currently India imports about 8 MTPA of steel

Giving a cushion to absorb additional supply in the immediate future

6

Jindal Steel & Power Limited (“JSPL”) is

a leading player in steel, power and

mining

Perseverance, firm commitment towards

all stakeholders and the community at

large coupled with an enterprising spirit

have been the driving force behind the

company's growth over the last decade

JSPL has consistently tapped new

opportunities by increasing production

capacity, diversifying investments, and

leveraging its core capabilities to

venture into new businesses

■ Iron ore mine 3.00 MTPA

■ Coal mine 12.00 MTPA

■ Pellet Plant 5.0 MTPA

■ Sponge Iron (coal based)

■ Sponge Iron (Gas based- Oman)

1.37 MTPA

1.50 MTPA

■ Hot Metal (Pig Iron) 1.65 MTPA

■ Total Steel 3.00 MTPA

Rails, Beams & Structurals 0.75 MTPA

Plates & Coils

Medium Section Mill

1.00 MTPA

0.60 MTPA

Slabs, Rounds, Blooms & Billets,

Wire Rods0.65 MTPA

■ Total Captive Power Plant 759 MW

■ Wind Power 24 MW

■ Jindal Power Limited 1,000 MW

Core operational capacities

JSPL – A young and dynamic company

7

(a) Captive Power Plant supplies power to all facilities

JSPL integration

Sale

FINES

Iron Ore from

Mines

Coal from

Mines

Coal Washery

BF

Coking

Coal

Pig Iron

POWER

PLANT(a) CSEB/OTHERS

EAF

RAIL &

UNIVERSAL BEAM

MILL

ROTARY

KILNS

Rails Structurals

Washery

Rejects

Sponge

Iron

Char/Flu Gases

Rounds/

Blooms/

Slabs/

Billets

Sale

Sale

Sale

Sale

Sale

SINTER

PLANT

PLATE MILL

PLATES &

COILS

Sinter

COKE

OVEN

COKE

Sale

Wire Rod &

Rebar

Pellets

Sale

Pelletization

plant

Sale

8

Hot Rolled Plates upto 3.5 Mtr. Billets Parallel Flange Beams

Channels Columns Hot Rolled Coils

JSPL Product Range

9

Beam Blank 120 Mtr. Long Track Rails Power

Rounds Fabricated Beams

JSPL Product Range (contd.)

10

JSPL Captive power plants

759MW

945MWAddition

1,708MW

FY12

Angul CPP

675 MW

(5x135 MW)

Existing

11

Tamnar Coal

Mine CPP

270 MW

(2x135 MW)



Financial overview

Growth drivers


12

India Power Story

13

Installed Capacity (Mar’ 11) Top 5 States (Power Demand)

Source: CEA

Source: CEA

A+ rated SEB‟s have doubled in FY 10

Top 5 states account for 50% of energy demand

Maharashtra & UP will likely drive future latent

demand due to large energy requirement &

deficit; either due to power cuts or non-availability

of power

Total Installed Capacity 173, 626 MW

Thermal Power 112,825 MW

Hydro Power 37,567 MW

Renewable 18,454 MW

Nuclear Power Reactors 4,780 MW

5 420 2116 18

25 2030 30

33295 6

10 20

FY07 FY08 FY09 FY10

C rating B rating A rating A+ rating

Source: PFC

State Utilities (Categorization by PFC)

Location

Fuel

JPL Operational Project – Tamnar I (4x250MW)

Tamnar, Raigarh, Chhattisgarh

(4 x 250 MW)

Captive coal mines

Power

Evacuation

258 Km Captive transmission

line connected to National Grid

14

FY10

Installed

capacity

(MW)(a)

1,000 1,000

Gross units

generated

(MU)(a)8,148

8,596

PLF93.0%

98.1%

Auxiliary

consumption

(%)

8.9%8.6%

FY 11

Financials FY 10 FY11

EBITDA (%) 90% 88%

PAT (%) 59% 56%

15

TAMNAR I PROJECT (OP Jindal super thermal power plant)

Main Plant 258 km transmission line from Raigarh to Raipur

6.9 km cross country pipe conveyor belt for coal transportation Captive Coal Mine



Financial overview

Growth drivers


16

0

500

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200320042005200620072008200920102011

0

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900

200320042005200620072008200920102011

Year

Revenue

Revenues

CAGR 47 %

Year

Net P

rofit

Net Profit

CAGR 60%

Consolidated, USD in Million

Consistent Performance

17

Growth Trajectory: Quarterly net profits

33 trailing quarters (consolidated, INR Crores)

60 60 50 5880

117 122 124 124147 150 145

126151 153 157

190 203

250277

319

405

444

765

900 899

988

808

874

963 957

894

951

1,001

Dec-02

Mar-03

Jun-03

Sep-03

Dec-03

Mar-04

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

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Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

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Consolidated financials at a glance

Note: EPS adjusted to reflect a 1:5 stock split w.e.f 27 Dec,07

Note: EPS adjusted to reflect a bonus issue of 5:1

* Net worth and Book value not stated as these are results for part of the year

(Rupees in Crores)

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Times

INCOME STATEMENT

Gross Turnover 1,403 2,467 2,905 3,948 6,260 11,694 11,679 13,998 9.9

Net Turnover 1,272 2,271 2,617 3,548 5,538 10,913 11,151 13,111 10.3

Net Profit After Tax 305 515 572 703 1,251 3,007 3,634 3,804 12.4

Cash Profit 434 765 858 1,174 1,810 4,193 4,759 5,115 11.7

BALANCE SHEET

Gross Fixed Assets 1,966 2,875 4,389 5,866 10,679 14,927 21,109 29,327 14.9

Net worth 853 1,317 1,837 2,475 3,722 7,021 10,386 14,135 16.5

Borrowings 1,026 1,495 2,745 3,507 6,996 8,113 8,605 13,987 13.6

Equity 15 15 15 15 15 15 93 93 -

SIGNIFICANT RATIOS

Operating Margin (%) 40% 40% 40% 41% 41% 48% 53% 49% -

Net Profit to Sales (%) 24% 23% 22% 20% 23% 28% 33% 29% -

Return on Net Worth (%) 36% 39% 31% 28% 34% 43% 35% 27% -

Long Term Debt Equity

Ratio 1.09 1.11 1.20 1.07 1.74 1.03 0.59 0.70 -

EPS (INR/Share) (a) (b) 3.34 5.58 6.31 7.64 13.54 32.44 39.05 40.75 -

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Financial overview

Growth drivers


20

Project CapacityExpected date of

CommissioningFinancial closure

Plate Mill 1.5 MTPA March, 2012 Achieved

DRI 2.0 MTPA March, 2012 Achieved

Power 810 MW April, 2011 - March, 2012 Achieved

Steel melting shop 1.6 MTPA September, 2012 Achieved

Facilities under implementation (Flat Products)

Resources

Coal mine, estimated reserves 228 MT, allotted. Mining expected to start from October 2011

Iron Ore mine, to be allotted as per MoU with the Govt. of Odisha

Coal gasification &

gas based DRIBlast furnace

Steel making

facilities

Flat products (Plates

and HR coils) Power Plant

4.0 MTPA 3.0 MTPA 6.0 MTPA 6.0 MTPA 810 MW

6 MTPA integrated steel plant & captive power plant at Angul, Odisha

JSPL’s greenfield expansions

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Project CapacityExpected date of

commissioning

Financial closure

Steel Making

(Wire Rod and Rebars)

Power Plant

3.0 MTPA

100 MW

December, 2014 Under process

Other Major Facilities

Coke Oven, Blast Furnace, Sinter Plant

and Steel Melting Shop

Facilities under implementation (Long products)

Resources

Two coal mines, combined estimated reserves of 320 MT, allotted

Iron Ore mine, with estimated reserves of 80 MT, allotted

Blast furnace Steel making facilities

(BOF Route)Flat products Long products

6.0 MTPA 6.0 MTPA 3.0 MTPA 3.0 MTPA

6 MTPA integrated steel plant & captive power plant at Patratu, Jharkhand

JSPL’s greenfield expansions (continued)

22

Project Capacity

Expected date of

commissioning Financial closure

Power Plant 270 MW Sept, 2011 Achieved

Facilities under implementation

Coal gasification &

gas based DRI Steel making facilities Power plant

2.0 MTPA 3.0 MTPA 540 MW*

3 MTPA integrated steel plant & captive power plant at Raigarh, Chhatisgarh

JSPL’s Brownfield expansions (continued)

* Out of 540 MW, 270 MW has been commissioned in the months of September and November 2010

23

Expansion plans of Jindal Power LimitedOverview of power projects

Name (Size) Type

Operational Project (1000 MW)

Tamnar I (1,000 MW) Thermal

Under Implementation Projects (10,480 MW)

Tamnar II (2,400 MW) Thermal

Dumka (1,320 MW) Thermal

Godda (660 MW) Thermal

Hydro (6,100) Hydro

Under Planning Projects (3,960 MW)

Jharkand (2,640 MW) Thermal

Angul (1,320 MW) Thermal

24

Capacity build-up timeline of JPL

Cumulative capacity build-up (for projects under implementation)(a)

1,0001,600

3,400

5,380 5,3806,180

6,980 6,980

11,480

FY14 FY15 FY16 FY17 FY18 FY19 FY20Existing

500MW

Attunli

660 MW

Godda

1,320MW

Dumka

4,000MW

Etalin

800MW +

800MW

Subansiri

Middle

Three units

of Tamnar II

(1,800MW)

Operational

Tamnar I

FY13

First unit of

Tamar II

(600MW)

(a) Projects under planning (3,960MW) have not been considered for the above timeline25

Project Capacity

Projected

investment

(INR m)

CTL Plant 80,000 bbl / day 320,000

Coal mining 50 MTPA 25,000

Power Plant 1350 MW 75,500

Total 420,500

Facilities under implementation

Coal to Liquid (CTL) Project

Objective

■ To enhance energy security of the country

■ Reduce dependence on import of crude oil/

petroleum products

■ Maximize Diesel production (60-70 % Diesel)

■ Establish environment friendly CTL Project with

a strategic fit to Indian Coal (High Ash)

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■ CTL capacity represents about 10% of India‟s current crude production

■ Compliant with Euro VI norms

Salient Points

IndiaOman

Bolivia

South

Africa

Mozambique

IndonesiaCongo

Global Footprint

Georgia

28

Oman

• JSPL acquired Shadeed Iron & Steel LLC. In July 2010

• Capacity of 1.6 mtpa DRI module (Midrex) plant

• Total Capital Expenditure of about 525 million USD

• Gas will be supplied by government at 1 $ per MMBTU, for 20 years

• Earned PAT of $3.6 Mn in 1st Quarter of operation (Jan – Mar 2011)

• Expansions planned

– Phase 1 1.5 MTPA Steel Making Product: Billet

– Phase 2 2.0 MTPA Rebar and Section Mills

Shadeed Iron & Steel LLC.

29

Bolivia

Estimated reserves of Iron Ore - 20 Billion tons

Investment of USD 2.1 Bn over a period of 8 years

Unit Capacity

Pellet Plant 10 mtpa

DRI Plant (Natural Gas based) 6 mtpa

Steel Capacity 1.7 mtpa

30

AFRICA

• Operating the Kiepersol Colliery near Piet Retief in Mpumalanga

• 20 MT recoverable reserves; Annual production capacity of 1 mtpa

South Africa

Mozambique• Mining Agreement signed in Jan. 2011.

• Coal resources estimated at 700 millions MT including coking coal

• Estimated Investment -USD 200 million in 5 years

• Mine expected to be operational by March 2012

Congo• Mining 8000 – 10000 carats per month of diamonds in Tshikapa

• Exploration for Kimberlites in progress in Banalia and Jacopunda

• Coal mine at Tete province (Western Mozambique) covering 25000 Ha

31

Indonesia

• Coal Mining License obtained in Dec 09.

• Total concession area of 51 sq km in Barito Regency in Kalimantan

• Coal deposits est. over 250 MT for open cast operation

• Production to start in FY 2011-12.

Resource pool to fuel JSPL’s growth

32

Mine State

Geological Reserve

(Mn MT) Purpose

Domestic Iron Ore

Tensa Orissa 20 Steel

Jiraldaburu Jharkand 80 Steel

Bailadila Chhattisgarh 100 Steel

Total 200

Overseas Iron Ore

El Mutun Bolivia 20 billion MT Steel

Domestic Coal

Gare IV / 1 & IV/6 Chhattisgarh 300 Steel & Power

Gare IV / 2 & 3 (JPL) Chhattisgarh 270 Power

Jitpur & Amarkonda Jharkand 305 Power

Utkal B 1 Orissa 224 Steel & Power

Urtan North M.P. 55 Steel & Power

Ramchandi (CTL) Orissa 1500 Coal to Liquid & Power

Total 2634

Overseas Coal

South Africa 50

Mozambique 1200

Indonesia 500

Total 1,750



Financial overview

Growth drivers


33

Awards

Ranked 1st as wealth creator in India over five years period - Dalal Street Investors Journal,

February, 2010

Features in Forbes Fab 50 list, 2009 & 2010

“Innovating Sustainability” - CSR Excellence Award by ASSOCHAM - 2010

Ranked 1131 by Forbes in 2009-10 (as against 1793 in FY09) in Global 2000 (World‟s biggest

listed companies list)

Achievements

“2nd largest value creator in the World” – BCG, “Threading the Needle” – 2010

based on Total Shareholder return (2005-2009) and 1st largest value creator in

Global Mining sector

Manufacturer of longest rail of 121 meter long in the world

Largest coal based sponge iron facility in the world

First Company to produce power from waste heat recovery boiler from sponge iron

Part of Nifty 50 and Sensex 30

Awards and Achievements

34

Sustainability Initiatives and Awards

Initiatives

Action Location

R&R Colonies All

Fly Ash brick plant Angul, Odisha

O.P. Jindal Institute of Technology & Skills Angul, Odisha and Patratu, Jharkand

Medical Camps Local villages in Odisha, Jharkand, Chhattisgarh

O.P. Jindal Hospital & Research Centre Raigarh, Chhattisgarh

O.P. Jindal School Raigarh, Chhattisgarh

Modernization of High School Patratu, Jharkand

O.P. Jindal Industrial Park Raigarh, Chhattisgarh

Awards

“Innovating Sustainability” – CSR Excellence Award by ASSOCHAM - 2010

Think Odisha Leadership Award in Corporate Social Responsibility – 2009, 2008

FICCI Award in recognition of Corporate Initiatives in sports

National Energy Conservation Awards - 2007, 2005, 2004, 2003, 2002, 2001

35

Copyright © 2010 Jindal Steel & Power Ltd.

Thank you

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Jindal Power