Financing the Growth

4th March 2011

 Consolidated financials 1999 - 2010
  FY11 (9M) Growth
FY 99 FY10 CAGR (%)
 (Rupees in Crores)  (times)

Gross Turnover 442 11,679 9,895 26 35%

Net Profit After Tax 47 3,634 2,802 77 48%
Cash Profit 78 4,759 3,721 61 45%

Gross Fixed Assets 467 21,109 27,138 45 41%

Net worth 334 10,386 12,893 31 37%
Borrowings 339 8,605 12,692 25 34%
Equity 15 93 93 - -

Operating Margin (%) 32% 53% 50% - -

Net Profit to Sales (%) 11% 33% 30% - -
Return on Net Worth (%) 14% 35% -- - -
Long Term Debt Equity Ratio 1.01 0.59 0.79 - -
EPS (INR/Share) (a) (b) 0.62 39.05 29.56 63 46%

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
Growth Trajectory: Quarterly net profits
32 trailing quarters (consolidated, INR Crores)

988
963 957 951
900 899 874

765 894
808

444
405

319
277
250
190 203
147 150 145 151 153 157
117 122 124 124 126
80
60 60 50 58

Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec-
02 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10
Financing the Capex (2010 – 2020)

Capex Planned upto 2020 (INR Crores)

Steel 82,000
Power 87,000
CTL 42,000
Total 211,000

Financing Plan
Debt Equity
Steel (60:40) 49,200 32,800
Power (70:30) 61,000 26,000
CTL (60:40) 25,200 16,800
Total 135,400 75,600

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How we will finance the Equity

Equity Required: Rs. 75,600 Crores

FY10 Cash Profits (INR Crores)

Steel 2,107

Power 2,808

Total Cash Profit in a FY 4,915

Total Cash Profit in 10 years 49,150

(from present operations)
JPL IPO +7,200

Incremental Profit from Capacity Additions +1,00,000

Total 1,56,350

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Future Financial Snapshot
Capex
(2010 – 2020)
211,000

2010 2020 (likely)

Revenue 11,679 93,000

EBITDA 5,908

PAT 3,634

Debt /Equity 0.59

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Resource pool to fuel JSPL’s growth
Geological Reserve
Mine State (Mn MT) Purpose
Domestic Iron Ore
Tensa Orissa 20 Steel
Jiraldaburu Jharkand 80 Steel
Bailadila Chhattisgarh 80 Steel
Total Domestic Iron Ore 180 Mn MT
Overseas Iron Ore
El Mutun Bolivia 20,000 Steel
Total Overseas Iron Ore 20,000 Mn MT
Coal
Gare IV / 1 Chhattisgarh 141 Steel & Power
Gare IV / 2 & 3 (JPL) Chhattisgarh 246 Power
Gare IV / 6 Chhattisgarh 158 Steel & Power
Jitpur Jharkand 81 Power
Amarkonda Jharkand 205 Power
Utkal B 1 Orissa 224 Steel & Power
Urtan North M.P. 55 Steel & Power
Ramchandi (CTL) Orissa 1500 Coal to Liquid & Power
Total Coal 2610 Mn MT
Impact of Budget on JSPL
Income tax exemption u/s 80IA for power units has been extended
for one additional year
 Benefit 1080 MW power capacity to be commissioned

Export duty on Pellets reduced from 15% to 0%

 Our realization will increase by 30$
 Increase in Export Avenues

Duty on export of Iron ore fines and lumps increased from 5% and
15% to 20%
 No impact of JSPL as we were not exporting fines

Surcharge on companies has been reduced from 7.5% to 5%

Customs duty of 2.5% on import of aircraft on non scheduled

airlines
 Thank you

Copyright © 2010 Jindal Steel & Power Ltd.