Sahaviriya Steel Industries PLC

SET - CIMB Thailand Corporate Day

13 March 2013

1

The information contained in this presentation is intended solely for your personal reference only. If you

are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any

action in reliance upon this material.

This presentation is not intended to substitute your own analysis and investigation, and should not be

considered a recommendation to any recipient of this presentation. Some statements contained herein

are forward-looking statements identified by the use of forward-looking terminology such as “may”, “will”,

“expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words, which are subject to

various risks and uncertainties. These statements include statements with respect to Sahaviriya Steel

Industries Public Company Limited (the “Company” or “SSI”)’s, Sahaviriya Steel Industries UK Limited

(“SSI UK”)’s and their subsidiaries (collectively referred to as “SSI Group”) corporate plans, strategies and

beliefs and other statements that are not historical facts.

This presentation is prepared based on the assumptions and beliefs of SSI Group’s management in light

of the information currently available to the Company involving risks and uncertainties which may cause

the actual results, performance or achievements to be materially different from any future results,

performance or achievements expressed or implied by such forward-looking statements. Nothing in this

presentation is, or shall be relied on as promise or representation of the Company as to the future.

Disclaimer

2

Overview of SSI

Agenda

Industry Outlook

Recent Update and Ongoing Project

Q4/2012 Performance Results

Q4/2012 and Year 2012 Financial Results

Q & A

Appendix:

3

Capacity

3.6 mtpa(2)

100,000 dwt(1) x 2 14 mmts through-put

HotCoil CleanStrip®

4 mtpa(2) 1 mtpa(2)

CRC 1.2 mtpa(2)

EG 0.24 mtpa(2)

Domestic capacity

Share n/a n/a 55% 66% 43% 100%

1) dwt = Deadweight ton

2) mtpa = million tons per annum

3) SV Group includes Sahaviriya Group, Sahaviriya Inter Steel Holdings, and Viriyaprapaikit Family

100% 51% 3.7% 35.19%

Finished products

out-bound

Raw materials

in-bound

Integrate World Class Steel Businesses

Innovate Premium Value Products

Major shareholders

as of 27 Feb 2013 3)

Coated

Steel Sheet

Cold Rolled

Coil

Hot Rolled

Coil

Deep-sea

Port

Iron and Steel

Making

99.99%

Engineering & Maintenance Service

Long-term

Strategies

ASEAN’s Largest Flat Steel Producer

36%

21%

35%

4% 4%

SV Group Vanomet Others JFEMISI

4

Leading Market Position in ASEAN

3.6

4.0

1.2

Thailand

& Europe

1 2 3 4 5 6 7 8

Target Customers

(Geographically)

Thailand Thailand Indonesia Malaysia Philippine

Key Products

CRC

HRC – P/O

HRC – Gen Use

Slab

Capacity (mtpa)

CRC

HRC

Slab

Integration with UK operation provides SSI with a leading market position as an

integrated producer in ASEAN

Remark : CRC capacity relates to SSI’s JV, Thai Cold Rolled Steel Sheet Plc.

Source : Company websites and Annual reports

0.00

1.00

2.00

3.00

4.00

1 2 3 4 5 6

5

SSI customers: Sectors & Applications

Hot Rolled Coil

P/O Coil

Finished Coils Sectors Applications

Commercial Grade

General Steel Pipes

General Steel Structure

General Steel Cut-to-Sheet

Unique-Grade

Steel Pipes

Steel Cut-to-Sheet

Floor Plate Steel

High-Grade

Re-rolling

Gas Cylinder & Pressure

Vessels

Automotive & Home and

Electrical Appliances Parts

Shipbuilding and High

Strength Structure

Atmospheric Resistant Steel

and Line Pipe

Machinery and Industrial Tools

6

Core Strengths

Premium Value Products: Focus to innovate high value-adding products with

higher margin – account for 37% of total sales in year 2012

Integrated World Class Steel Business: Iron & Steel Making Business in North

East UK and HRC Business and downstream facilities in Thailand

Location Competitive Advantage: (facilities in Thailand and United Kingdom)

UK: Higher grade ore at lower price in Atlantic Basin, shorter deliver time and

freight cost saving, benefit from EUROPE debt situation from Pound Currency

depreciation and cheaper raw material procurement, lower overall cost.

Thailand: High growth in ASEAN market particularly for high-grade flat

products, lower labour & overhead cost, shorter distance & lead-time to

customers

Diversify risk strategy: SSI UK supplies slab internally (SSI) and externally, and

vice versa for SSI

Strong market position: The leading flat steel producer in ASEAN

Synergies: Multiple synergy opportunities identified

7

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Q4/2012 Performance Results

Q4/2012 and Year 2012 Financial Results

Q & A

Appendix:

8

2011 GDP and Apparent Steel Use per capita

ASEAN: Malaysia and Thailand are the most outstanding countries both in GDP and Apparent Steel Use per capita.

China

Japan

India

Malaysia

Thailand

Vietnam

Indonesia Philippines

World

Myanmar

ASEAN

UK

Canada

US

BRICs

Mexico

Nigeria

Turkey

Brazil

Russia

Australia

0

50

100

150

200

250

300

350

400

450

500

550

0 10 20 30 40 50 60 70

Ap

pare

nt

Ste

el U

se

per

Cap

ita (

Kg

)

GDP per Capita ('000 USD)

Source : IMF, World Steel Association, Economic Watch

Note:*For illustration purpose, South Korea’s and Singapore’s data are not included in the chart.

Country

GDP per

Capita

('000 USD)

Apparent

Steel Use

per Capita

(Kg)

South

Korea* 22 1,156

Singapore* 49 822

China 5 460

Japan 46 507

India 2 59

Malaysia 10 310

Thailand 5 219

Vietnam 1 125

Indonesia 4 45

Philippines 2 50

World 10 218

Myanmar 1 23

ASEAN (e) 5 94

UK 39 148

Canada 50 416

US 48 285

BRICs (e) 5 260

Mexico 10 158

Nigeria 0 12

Turkey 10 342

Brazil 13 123

Russia 13 296

Australia 66 280

9

AEC & Impact on Thai Steel Industry

Automotive & Parts

Electrical & Electronics

Food Production Hub

(Packing)

Machinery and Metal

Working Production

Base

Manufacturing &

Assembly Hub

Electrical & Electronics

Thailand is center of ASEAN production

hub in electrical appliances

Food Production Hub

(Packing)

Thailand is center of world food

factory. Canned food output has been

grown up slightly. Mechanization of

agricultural process will increase more

output in canned food. Tourism Hub

Potential AEC-impacted sectors SSI targets high grade market, though impacted, growth is promising

Automotive & Parts

Thailand is center of ASEAN

production hub for automobiles.

Remark :* White goods include fan, rice cooker, refrigerator, air conditioner and compressor

Source : Thailand Automotive Institute , FTI, and ISIT

0

10

20

30

40

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

White goods (MillionUnits)

CAGR 02-12

5.1%

0

200

400

600

800

1000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Canned Seafood (Unit : '000 tons)

Canned fruit (Unit : '000 tons)

CAGR 02-12

4.9%

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Passenger car ('000 units)

Commercial car ('000 units)CAGR 02-12

15.4%

0

10

20

30

40

50

60

2011E

Million tonnes Apparent Steel Consumption in ASEAN

Production Import Export Consumption

0

10

20

30

40

50

60

2011E

Million tonnes Apparent Steel Consumption in ASEAN

Production Import Export Consumption

10

Thailand flat steel demand: the biggest and most sophisticated in ASEAN

Application Midstream & Downstream Upstream (Iron & Steel Making)

Checkered

Source : WSA, ISIT, SEASI, Federation of Thai Industry

4.9

6.4 1.2 0.8

HRC P/O

Hot Rolling

2.5 3.1

5.6 MT

Cold Rolling

CRC

2.0 MT

Coating

Coated

Local (MT)

Net Import (MT)

2012 Domestic

Demand

11.3 MT

Total Flat

Products

Slab

Thailand Flat Steel: largest and most sophisticated consumption in ASEAN, approximately 6.4 mtpa or 57% of total consumption served by net import

1.1 2.6

MT

ASEAN’s industrialisation and urbanisation has driven and will drive consistent high growth.

LONG: CAGR 98-11

6.8%

FLAT: CAGR 98-11

9.2%

High growth, but served by import due to lack of raw material regionally

Apparent Steel Consumption High-grade Flat Steel Products Consumption

ASEAN steel demand is now 50 million tons per annum and is forecasted to constantly grow at 5.3%

0

10

20

30

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

0

10

20

30

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

47% 54%

53% 46%

1998 2011

Long

Flat

90

80

70

60

50

40

30

20

10

CAGR 01-11

5.3%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20 17 2018 2019 2020

Forecast

CAGR 12-20

5.3%

3.7 MT

11

4.93 5.35

9.87 11.26

0

2

4

6

8

10

12

14

16

18

2011 2012

Mill

ion

MT

Flat

Long

0.5

6.1

2.5

0.8

0.6

6.9

2.8

1.0

HR Plate

HR Sheet

CR Sheet

Coated

Inner Chart =2011

Outer Chart= 2012

Unit: Million MT

Apparent Finished Steel Consumption Flat Steel Consumption

Car/ HA/ EA Production • Steel consumption in Thailand in 2012

increased 12.2% from growth in flat and

long products of 14.1% and 8.6%,

respectively.

• Growth in flat products consumption was

mostly driven by the 70% rise in vehicle

production consequent to the

government’s tax-rate on first-time car

buyer.

Thai Steel Market

-

500

1,000

1,500

2,000

2,500

Cars and HA/EA Production 2012

-

2,000

4,000

6,000

8,000

10,000

Cars and HA/EA Production 2011-2012

In Thousands

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Car Fridge A/C Car Fridge A/C

‘11 ‘12 ‘11 ‘12 ‘11 ‘12

Source : ISIT

Source : FTI and BOT

Source : ISIT

1,419

1,650

1,905 1,830

Q2/12 Q3/12 Q4/12 Q1/13

Thailand HRC Outlook

12

HRC Apparent Steel Supply (in ’000 tons)

Source: Iron and Steel Institution of Thailand for 2008-2012

* Year 2013 is forecasted upon actual data and SSI’s estimate

Q2/12 Q3/12 Q4/12 Q1/13

Domestic Production 533 654 601 730

Import 889 1,003 1,314 1,100

Export 3 7 11 0

Total Supply

1,419

1,650 1,905 1,830

HRC apparent steel supply is expected to decline to 1.83 MT in Q1/2013, or -4% QoQ, due to

decrease in import.

HRC apparent steel supply in 2013 is forecasted to grow by 6.6% YoY to approx. 7.08 MT from

6.64 MT in 2012.

Source: Iron and Steel Institution of Thailand for Q2-Q4/12,

and SSI’s estimate for Q1/13

4,986

4,389

5,848

5,075

6,642

7,080

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009 2010 2011 2012 2013f

Domestic Production

Import

Export

Total Supply

2012 2013f

2,552 3,380

4,113 3,700

24 0

6,642 7,080

13

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Q4/2012 Performance Results

Q4/2012 and Year 2012 Financial Results

Q & A

Appendix:

14

1.8

3.2 3.4

Year 2012 Year 2013 Year 2014

0.7 0.8 0.8 0.9 0.7

1.5

2.3

3.2

Q1 13 Q2 13 Q3 13 Q4 13

Slab production (MT)

Cumulative annualproduction (MT)

Slab Production Plan (SSI UK)

The Continuous Journey of SSI UK Slab Shipments

Customer in UK 6.0kt

Customer in Germany 2.0kt

Customer in Italy 26.7kt

15

SSI #1 - #12 Vessels

Shipped before 31 Sep 2012

Totaling 838 kt

SSI#13 Yasa Eagle

61kt

SSI#14 JS Amazon

56kt

SSI#15 Alum Padu

66kt

SSI#16

Triton Gannet

62kt

SSI#17 Great Hope

61kt

SSI#18 Tarang

59kt

SSI#19 Voyager

52kt

SSI#17 Great Eagle

60kt

SSI#21

Furness Karumba

50kt

SSI#22 Athena

60kt

SSI#23 Magsenger2

84kt

SSI#23 Prime Rose

65kt

Turkey #1 - #6 Vessels

Shipped in 2012

Totaling 232 kt

Turkey#7 Slavnik

45kt

Turkey#8

Coral Queen

45kt

SSI UK’s outside customers

16

Customer in UK

• Plate Mill for structural and high

end plate with capacity of 0.3

million tons per year.

Customer in Italy

• Plate Mill for general and high

strength plate such as API,

pipe, etc with capacity of 0.35

million tons per year.

Customer in Germany (Q3/12)

• Plate Mill for high end

application of machine tools

and part with capacity of 0.15

million tons per year.

New customer in Mexico

• Fully integrated flat and long

carbon steel producer of HR and

CR for automotive and high end

application

Customer in UK

• Hot Strip Mill with total capacity

of 1.0 million tons per year.

Customer in Turkey

• Hot Strip Mill for high grade

pipe and API with total

capacity of 3.0 million tons

per year.

Q2/13

Q4/12

Q3/12

Q4/12

Q3/12

Q2/12

Current

17

Sales Breakdown by End-user Segments

Auto 4%

HA/EA 1% M/C

0% Energy

1%

General industries

27%

Year 2012

Auto 7%

HA/EA 2%

M/C 0%

Energy 2%

General industries

23%

Year 2013 f

Construction

67%

Construction

66%

Target Plan

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

20122012 (Actual)

20132014

0.020 0.017

0.440

0.780 0.40

0.38

0.33

0.19

Qty (MMT) Other Slabs

SSI-UK Slab

Introduction of SSI UK slabs to high end customers project

(Others 42%)

Purpose: To introduce SSI UK’s slabs use in high end applications such as cold

rolling, HA/EA and automotive.

(SSI UK

80%) (SSI UK

58%) (SSI UK 5%)

(Others 95%)

0.42

0.97

Important development in Q4

Cold rolling application:

Auto, HA/EA application:

18

0.39

(SSI UK 4.5%)

(Others 95.5%)

0.77

- Start supply commercial lot to new cold-roll customer

- Got approval for 2nd trial lot from current cold-roll customer and plan to start supplying commercial lot in Q1/13

- Under materials approval stage, SSI has already submitted steel samples of

SSI-UK slab to 3 car producers. One of them has already approved SSI materials in early Q1/13

(Others 20%)

19

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Q4/2012 Performance Results

Q4/2012 and Year 2012 Financial Results

Q & A

Appendix:

20

HRC Business Performance

COST*

USD/ton

555-565 725-735 675-685 660-670 630-640 575-585 610-620 585-595

Note: * Import Cost of slab is based on CIF

434 371

301

655

342 349

824

645

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

Imported Slab Volume (k tons)

736

761

807

783

752

731

700 694

21%

14% 15% 17%

12%

16%

12% 11%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

600

800

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

Avg. Selling Prices HRC Rolling Margin

907

57 214 211

569

-166

287 367

56.7

6.2

17.8

23.6

37.2

-12.1

15.4 18.5

-20

-10

0

10

20

30

40

50

60

-400

-200

0

200

400

600

800

1,000

1,200

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

US

D/t

on

Mill

ion B

aht

EBITDA (left-axis) EBITDA/ton (right-axis)

524

330

414

303

497

423

588

647

539

279

371 376

500

368

627 602

340 337

224 202

278 230

418 404

-500

-400

-300

-200

-100

0

100

200

300

400

500

200.00

300.00

400.00

500.00

600.00

700.00

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

Tho

usa

nd

s

Sale Volume (k tons) Production (k tons) Productivity (ton/hr)

10% 8% 10% 11% 7% 4% 8% 8% 3%

0% 7% 2% 7%

9% 3% 7%

11% 13%

11% 12% 11%

8% 14% 11%

16% 16% 15%

14% 10% 11%

15% 12%

59% 62% 57%

61% 64% 69% 61% 63%

Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 . 2011 2012

Commercial

Unique

High-Grade

Innovated Value Product

Innovated Value Product(High-Grade)

21

Premium Value Products accounted for 31% or 203 k tons in Q4/12

Premium Value Products accounted for 37% or 802 k tons in year 2012 or +31% YoY

Innovated Value Products sold in Q4/12 = 81 k tons, down from 90k tons in Q3/12

Innovated Value Products sold in year 2012 = 308 k tons, up from 170 k tons in year 2011

or +82% YoY

HRC Business - Sales Ratio of Premium Value Products

31% 37%

21% 21% 20% 16%

15% 19%

19% 19%

18%

19% 22% 31%

30% 27%

37% 33%

16% 14%

3% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Q1/12 Q2/12 Q3/12 Q4/12

SSI

Other Domestic Producers

Import- Carbon Steels

Import- Carbon Steels & PO

Import- Other (Alloy Steel)

22

HRC Domestic Market Share

SSI’s market share was 33% in Q4/12, down from 37% in Q3/12; while shares of imports was up

from 60% to 67% in Q4/12.

Total apparent steel supply in Q4/12 has grown by 15% QoQ to approx. 1.9 MMT, of which 602 k

tons were supplied by SSI and the remaining were supplied by imports.

54% 59%

60%

* Recently identifiable from designated harmonized code for alloy steel (previously classified as stainless steel)

67%

Slab production increased from 620 k tons in Q3/12 to 668 k tons in Q4/12

Slab sale decreased from 679 k tons in Q3/12 to 666 k tons in Q4/12,

with 25% sold to external parties

Slab spread improved from 44 USD/ton in Q3/12 to 54 USD/ton in Q4/12

Iron and Steel Making Business

Slab Production and Sale in Q4/2012

23

477

335

620 679 668 666

Slab Production Slab Sale FY2012

551 544 503

544 500

449

Q2 Q3 Q4

Avg Selling Price Avg RM Price Slab Spread

44

54

Volume in ‘000 tons SSI UK’s Slab Spread (USD)

Q2 Q3 Q4 Q2 Q3 Q4

7

1,765 1,680

24

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Q4/2012 Performance Results

Q4/2012 and Year 2012 Financial Results

Q & A

Appendix:

-1,879

-3,577 -3,146 -2,078

-2,841

-5,022 -4,782 -3,259

Consolidated Performance

25

Source : WSA press release , Oct, 2011

Q1/12 Q2/12 Q3/12 Q4/12 Y2011 Y2012

RE

VE

NU

E

EB

ITD

A

NE

T P

RO

FIT

80%

19%

0% 0%

HRC

Iron & Steel

Port

Engineering

% by Business unit

in Year 2012

1,056

280 97

-258

-10,680 -11,855

HRC Iron &

Steel

Port Engineering

EBITDA

in 2012

Related

transaction

155 45

-191 -63

-15,903

-1,655

-14,194

HRC Iron &

Steel

Port Engineering

Net profit

in 2012

Related

transaction

Non-controlling

interest

15,742 11,469

15,794 17,599 47,975

60,604

1,405

-10,680

-981

-15,903

Unit: MB

Recent consolidated net profit

26

Source : WSA press release , Oct, 2011

-210 -86

-1,432

2,053

-3,259

-6,000

-4,000

-2,000

-

2,000

4,000

6,000

8,000

Q4/12

Revenues COGS SGA Reserve Interests Others Net Profit

17,599

-21,183

60,604

-2,056 -490

-3,876

-

1,794

-15,903

-20,000

-15,000

-10,000

-5,000

-

5,000

10,000

15,000

20,000

25,000

Year 2012

-71,879

Onerous

contract

Note : Included FX gain of 579 MB,

Reversal of environmental

provision of 808 MB and Income

tax benefit s of 613 MB

Note : Included FX gain of 346 MB,

Reversal of environmental

provision of 808 MB and Income

tax benefits of 601 MB

Unit: MB

Unit: MB

SSI UK Net profit in Year 2012

27

-1,181 -490 -1,763

1,493

-14,194

-20,000

-15,000

-10,000

-5,000

-

5,000

10,000

15,000

20,000

25,000

30,000

Revenues COGS SGA Reserve Interests Others Net Profit

34,964

-47,217

Unit: MB

Note : : Included Reversal of

environmental provision of 808 MB

and Income tax benefit s of 623 MB

Onerous

contract

28

Consolidated Financial Position

Interest Bearing Debt/Equity (x) Current Ratio (x)

1.27 1.15

0.95 0.84

0.72 0.75 0.71 0.71

0.0

0.5

1.0

1.5

2.0

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12

22,838 22,185

25,838 25,432 25,309 25,178

16,983

24,423 25,302

21,615

Dec-11 Mar-12 Jun-12 Sep-12 Dec-12

S/T Loan Inventories

Current Ratio remained relatively constant through out 2012 but decreased from year 2011 as external funds were used

to fund working capital.

Interest Bearing Debt/Equity rose through out 2012 as loans were drawn to fund SSI UK’s Restart Project and from

issuance of convertible debenture until the equity injection in November and December 2012.

Total Equity at year end 2012 increased QoQ due to the equity injection in Q4/12 but not enough to off set the impact of

net losses for the year. Hence, total equity declined by 10,000 MB YoY.

54,921

24,948

56,165

21,443

58,198

17,173

55,364

12,419

55,491

14,882

31,443

61,416 24,225

58,947

33,167

74,192

37,823

80,768

33,029

73,638

Dec-11 Mar-12 Jun-12 Sep-12 Dec-12

Non Current Assets Current Assets Equities Total Liabilities

1.30 1.50 1.49 1.82

2.19

3.13

4.35

3.49

0.0

1.0

2.0

3.0

4.0

5.0

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12

Consolidated Working Capital (MB) Total Assets and Liabilities (MB)

29

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Q4/2012 Performance Results

Q4/2012 and Year 2012 Financial Results

Q & A

Appendix:

Group Structure and Business (As of 27 Feb 13)

100.00% 3.70% 35.19% 51.00% 99.99%

50.00%

Free Float 45.72%

Foreign Limit 49.00%

Foreign available 11.89%

VANOMET HOLDING AG SAHAVIRIYA GROUP

36% 21%

JFE Steel Corporation

4%

Marubeni-Itochu Steel Inc.

4% 35%

Others

Note: * Turnover = Sales and Service Revenues

** Assumed exchange rate at THB 30/ USD.

Thai Coated

Steel Sheet Co., Ltd.

Turnover 95 MUSD

West Coast

Engineering Co., Ltd.

Turnover 23 MUSD

Thai Cold Rolled

Steel Sheet PLC.

Turnover 489 MUSD

Prachuap Port

Co., Ltd.

Turnover 12 MUSD

Sahaviriya Steel

Industries UK Ltd.

Turnover 1,125 MUSD

Redcar Bulk

Terminal Limited

Turnover 19 MGBP

Deep–sea Port Services

Turnover 2,020 MUSD

Group Business:

1. Hot-Rolled Coils Business in TH

2. Cold-Rolled Coils Business in TH

3. Coated Steel Sheet Business in TH

4. Engineering and Maintenance Service Business in TH

5. Deep-Sea Port Business in TH

6. Iron and Steel Making Business in UK

7. Deep-Sea Port Business in UK

Company: SAHAVIRIYA STEEL

INDUSTRIES Plc. (SSI)

Foundation: 13 March 1990

1st Day Trading: 8 September 1994

Website: www.ssi-steel.com

Group Employees: 4,104 (at the end of 2012)

CEO: Mr. Win Viriyaprapaikit

Ownership:

Company at a Glance (As of 27 Feb 13)

SV Group 36%

Vanomet

21%

Others 35%

JFE 4%

MISI 4%

No. of Listed Shares: 27,431,336,113 Shares

Registered Capital: THB 39,867,778,559

Paid-up Capital: THB 27,431,336,113

Par Value: THB 1.00

Foreign Limit: 49%

Foreign available: 11.89%

Dividend Policy: No less than 25% of the Company's net profit

each year on a non-consolidated basis

32

SSI’s Milestones & Snapshot

• Started its operation with Slab

capacity of 3.6 mmtpa

• First slab produced in April 2012

• SSI was established by Sahaviriya Group, and

incorporated as a public company

• Became the first and only conventional

standalone Hot Strip Mill in Thailand

1990

• Invested in TCRSS

• Established PPC to operate deep sea

port in Prachuap Khirikhan

• Started its operation with HRC

capacity of 1.8 mmtpa

• Became a listed-company on the SET

1994 1995

• Expanded its HRC

capacity to 2.4 mmtpa

1997

• Invested in TCS to extend

further downstream

• Set up WCE to provide engineering

& maintenance services among the

group of companies

1999

• Acquired TCP’s iron and steel making facilities

through its overseas subsidiary, SSI UK

• Began SSI UK restart project to refurbish its

facilities

2011

2012

2013 • Installed two shore

cranes (100 tons each)

2004 2012

• Reached 26 mmt of

accumulative HRC

production, the first steel

producer in Thailand

• Expanded its HRC capacity

to 4.0 mmtpa, with P/O

capacity of 1.0 mmtpa

1994

1994

2012

2013

• Pulverized Coal Injection (PCI)

project expected to be in use

“Coastal Mill” #1 SSI and

its downstream mills are

integrated with the deep

sea port

Perfect strategic location

for steel business

Bang Saphan 400 km

south of Bangkok

Upstream facility with the

deep sea port in Northeast

UK

Perfect strategic location

for steel business

Teesside 400 km north of

London

“Coastal Mill” #1

“Coastal Mill” #2

33

Unit: USD/Ton

2012 2011 2012 2011

Q4 Q3 Q4 Jan-Dec Jan-Dec

HRC Average Selling Price 694 700 783 717 769

HRC Spread 73 87 132 89 129

HRC Rolling Margin 10.6% 12.4% 16.9% 12.5% 16.8%

HRC EBITDA 18.5 15.4 23.6 16.0 29.4

HRC Shipments (k tons) 647 617* 303 2,184* 1,571

Production Volume (k tons) 602 627 376 2,096 1,564

Utilisation Rate (%) 60 63 38 52 39

Production Rate (Ton/hdw**) 404 418 202 328 264

Yield loss (%) 1.50 1.67 1.45 1.56 1.59

HRC Business Key Performance Snapshot

Note: * Including 29 k tons of tolling service volume in Q3/2012

** Ton/hdw = Ton per hour direct working time

34

Unit: MB 2012 2011 2012 2011

Q4 Q3 Q4 Jan-Dec Jan-Dec

Sale and Service Revenue 17,599 15,794 13,008 60,604 47,975

COGS (21,183) (18,730) (14,665) (71,879) (49,638)

SG&A (210) (718) 13 (2,056) (1,955)

Provision for loss under onerous

contracts (86) (147) (182) (490) (311)

Gain on business acquisition - - - - 5,271

EBITDA* (2,078) (3,146) (1,985) (10,680) 1,405

Interest Expenses (1,432) (952) (676) (3,876) (1,969)

Depreciation and Amortization (363) (666) (262) (1,948) (956)

Income Tax Expense 613 (17) 548 601 539

Realized Gain (Loss) from FX 857 (210) (481) 283 (502)

Unrealized Gain (Loss) from FX (269) (51) 169 63 (28)

Net Profit (Loss) (3,259) (4,782) (2,376) (15,903) (981)

EPS (Baht) (0.15) (0.26) (0.14) (0.84) (0.06)

Consolidated P&L Snapshot

35

SSI TH P&L Snapshot

Unit: MB 2012 2011 2012 2011

Q4 Q3 Q4 Jan-Dec Jan-Dec

Sale and Service Revenue 13,946 13,087 7,647 48,470 37,699

COGS (13,706) (13,260) (7,509) (47,838) (35,910)

SG&A (237) (223) (149) (777) 1,789

Provision for loss under onerous

contracts (15) (272) 129 0 (612)

Gain on business acquisition - - - - -

EBITDA* 367 287 211 1,056 1,389

Interest Expenses (615) (616) (412) (2,088) (1,321)

Depreciation and Amortization (174) (177) (124) (622) (512)

Realized Gain (Loss) from FX 337 53 (95) 359 (136)

Unrealized Gain (Loss) from FX (234) 171 54 68 (128)

Net Profit (Loss) (422) (506) (325) (1,655) (444)

EPS (Baht) (0.02) (0.03) (0.02) (0.09) (0.03)

36

Unit : MB 2012 2011

Sale Revenues 34,964 9,936

Cost of Good Sold (47,217) (13,643)

Admin Expenses (1,181) (1,251)

Provision for loss under

onerous contracts

(490) (311)

Gain from Business

Acquisition

- 5,271

EBITDA (11,855) (51)

Interest Expenses (1,763) (631)

Bank Fees (28) (104)

Gain (Loss) on FX (54) (284)

Gain (Loss) on Investment 55 7

Other Incomes 897 3

Income Tax 624 552

Net Profit (Loss) (14,194) (454)

SSI UK Financial Results

Profit and Loss Statement Statement of Financial Position

Unit : MB 2012 2011

Current Assets 10,759 8,553

Non-current Assets 33,623 31,218

Total Assets 44,382 39,771

Short-term Liabilities 13,128 7,565

Other Current Liabilities 5,010 5,963

Total Current Liabilities 18,139 13,528

Long-term Loans 14,646 10,057

Total Liabilities 35,202 27,732

Share Capital 23,801 12,255

Retained Earning (14,844) (650)

Total Equity 9,180 12,038

Total Liabilities & Equity 44,382 39,771