Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. K HOUZESTAN S TEEL C O. MetalExpert MENA Billet Import Conference Dubai, UAE In The Name Of God MAY 20, 2015

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Islamic Republic of Iran General Information  Area : 1,648,195 km 2  GDP : Billion USD  Population: 77.9 Million  Labor Force : 25.7 Million (2013)

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Natural Resources and Infrastructures Crude oil proven reserves :157 Billion barrels Oil production : 4.2 Million BBL/Day Natural gas proven reserves: 33.6 Trillion cu m Natural gas production : 200 Billion cu m Electricity Generation : over 50,000 MW Airports : 319 Railways : 8,442 km Roadways : 172,927 km Iron ore Proven reserves : 4 BMT Semi Final Product Capacity : 20 MMT Final Product Capacity : 28 MMT

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Global Crude Steel Production Country % 2014/ Rank MM Tone Rank MM Tone Rank MM Tone Rank MM Tone China Japan United State India South Korea Russia Germany Turkey Brazil Ukraine Italy Taiwan Mexico Iran France Spain Canada World1.91,6371,6071, Source :World Steel Association

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Iran’s Crude Steel Production Share in the Middle East World Steel Association, Steel Statistical Yearbook 2013

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Crude Steel Production in Iran (m. tons) World Steel Association, Steel Statistical Yearbook 2013

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Technology Production Portfolio Iran Steel IndustryGlobal Steel Industry World Steel Association, Steel Statistical Yearbook 2013 Electric Arc Furnace Blast Furnace

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Islamic Republic of IRAN Persian Gulf Caspian Sea Production start : 1989 Nominal Capcity : 1.5 (MMTon) Present Capacity : 3.7 (MMTon) 2014 Production : 3.5 (MMTon) Employee: 7439 Products: Slab & Billet&Bloom Technology : DIR+EAF Max Annual Export: 1 (MMTon) 2015 Export Plan: 1.5 (MMTon) Capacity Plan : (MMTon) K HOUZESTAN S TEEL C O.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Special Features  Customer orientation, flexibility towards customer requirements  Experience of products Export (Europe – MENA- Asia-Far EAST )  On time delivery of products  Easy access to energy sources (water, gas, electricity).  The first producer of sponge iron using direct reduction technology in Iran  Producing Clean steel with variety of grades with high level of Quality.  Connection with railway transportation network & Accessibility to international waters  Privet Jetty and exporting infrastructure  Management standards and systems : ISO-9001:2008 ISO-14001:2004 OHSAS : 2007 ISO-10015:1999 ISO-27001:2005 ISO-50001

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. KPIunit Capacity MMT KSC Strategic Destination Capacity5.0 MMT Capacity8.8 MMT Capacity13.6 MMT Capacity3.7 MMT 2017 KSC Capacity Outlook 25% Capacity Share of 2025 Country Vision

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Grow Revenue Productivity-cost reduction Sustainable Growth & Increase Profitability Manage Strategic Costs Competitive price To increase the customer satisfaction Ontime delivery optimum sale in domestic markets Operational ExcellenceEffective management of marketDevelopment and Technology Management Financial Customer Processes Learning & Growth Information Capital Management Social responsibility Human Capital Management organizational capital Management Sustainable & Economic Supply Increasing products with higher value added Increase production and Products quality promotion Optimize consumption rate of materials, Energy and water Development of products with higher added value Presence in the value chain downstream Technology localization Development Of Customer relation Marketing and sales for training services, engineering and technology change the work environment & safety conditions Environmental Protection And improved waste management Improve satisfaction, motivation and loyalty of employees Human capital Development Organizational Leadership Development Improve the effectiveness and integrity of the management system integration the communicatio n infrastructures Development of information systems and integrated automation throughout the value chain Increasing diversity of products offering Products with expected quality increase productivity Financial Resources Management Financial Resources Management supply Optimum Finance resources KSC Strategy Map promotion of interactions with officials and community representatives Improve safety culture sustainable and economic supply Sustainability in the supply of electrical energy development of spare parts Localization & domestic production support Increase Capacity with development projects P07 To Develop the Export Markets and Sales

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Establishment TitleStandard No. (1996/6/27) Quality Systems. Model for quality assurance in design, development, production, installation and servicing (QS) ISO9001:1994 (2003/12/8)Quality Management Systems (QMS)ISO 9001:2000 (2009/12/22)Quality Management Systems (QMS)ISO 9001:2008 (2002/11/18)Environmental Management Systems (EMS)ISO : 1996 (2005/11/13)Environmental Management System (EMS)ISO 14001:2004 (2005/5/16) Occupational Health and Safety Management System (OHSAS) OHSAS 18001:1999 (2008/7/13)Occupational Health and Safety Management Systems )OHSAS) OHSAS 18001:2007 (2009/10/2)Information Security Management Systems (ISMS)ISO 27001:2005 (2010/02/17) Quality management guidelines for training:1999 ISO (2015/01/15)Energy Management SystemISO 50001

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Pelletizing Plant Direct Reduction Plant Steel making Plant KSC Main Plants

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Pelletizing Plant This section is consist of two Units :  Material handling  Two pelletizing plants

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Direct Reduction Plant This section is consist of Five Units : - 3 Midrex modules - 2 zam zam modules

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Steel Making Plant This unit Produces Slab and Billet’s using Sponge– iron (~% 95 ~ 90) and Scrap (%5~10) in EAF’s ( Electric Arc Furnaces ) The main melting and casting facilities are : Six Electric Arc Furnaces. Four Ladle Furnaces ( LF). TWO Slab Casting machines. Three Billet & bloom casting machines One VD Machine

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co ,4903,5503,4113,3942,9352,5292,2242,169 Ton Ton 0.5% 0.4%

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Total Export : ~ 10 MMT 2014 Export 0.5 MMT

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Total Quantity: MT KSC BILLET&SLAB EXPORT 2014

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Total Quantity : MT

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Pellet DRI Slabs-Billets DRI Billets SLAB Processes Cap. Mt/y Plan Mt/y

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Expansion Projects Increasing Capacity KSC 0.8 MMt/y SSC 1 MMt/y Trend of Production & Capacity MMT Production Capacity

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Our Strategy Sustainable Steel Environmental sustainability Social sustainability Economic sustainability

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. KSC Swimming Pool KSC Hospital KSC Lake

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. KSC Football Stadium KSC Bridge KSC Exhibition

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Unser construction Green Space : 492 Hectare Save The Earth For The Posterity

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Key Points  Customer requirements and needs.  On time delivery of products.  Producing Clean steel with variety of Steel grades.  Privet Jetty and exporting infrastructure  BEST QUALITY APPROVED BY Customers and Management systems Audits  1.5 MMT EXPORT PLAN ( 2015 )

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Thank you for Your Attention

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Word DRI Production 2012 Source : 2012 Word Direct Reduction Statistic 3 rd Quarter 2013