1. 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

2. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Islamic Republic of Iran General Information  Area : 1,648,195 km 2  GDP : 818.7 Billion USD  Population: 77.9 Million  Labor Force : 25.7 Million (2013) http://www.worldbank.org/en/country/iran/overview

3. 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

4. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Global Crude Steel Production Country % 2014/2013 2014201320122011 Rank MM Tone Rank MM Tone Rank MM Tone Rank MM Tone China5.61822.717791724.71702 Japan0.12110.72110.62107.22107.6 United State1.5388.3387388.7386.4 India2.5483.2481.2477.6473.5 South Korea7.6571.0666669.1668.5 Russia1.7670.6569.4570.4568.9 Germany0.7742.9742.6742.7744.3 Turkey-2.0834.0834.7835.91034.1 Brazil-0.9933.9934.2934.5935.2 Ukraine2.51027.11032.81033835.3 Italy-1.71123.71124.11127.31128.7 Taiwan4.01223.21222.31220.71220.2 Mexico2.71318.91318.41318.11318.1 Iran5.81416.31515.41514.51613.2 France2.51516.11415.71415.61415.8 Spain2.91614.11613.71613.61515.5 Canada0.01712.51712.51713.51712.9 World1.91,6371,6071,5461536 Source :World Steel Association

5. 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

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

7. 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

8. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

9. 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 : 2017 5 (MMTon) K HOUZESTAN S TEEL C O.

10. 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-18001 : 2007 ISO-10015:1999 ISO-27001:2005 ISO-50001

11. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. KPIunit2015201720202025 Capacity MMT 3.75.08.813.6 KSC Strategic Destination 2015 2020 2025 Capacity5.0 MMT Capacity8.8 MMT Capacity13.6 MMT Capacity3.7 MMT 2017 KSC Capacity Outlook 25% Capacity Share of 2025 Country Vision

12. 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 2014-2017 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

13. 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 14001 : 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 10015 (2015/01/15)Energy Management SystemISO 50001

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

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

16. 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

17. 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

18. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. 20142013201220112010200920082007 3,4903,5503,4113,3942,9352,5292,2242,169 Ton Ton 0.5% 0.4%

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

20. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

21. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Total Quantity: 500 000MT KSC BILLET&SLAB EXPORT 2014

22. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Total Quantity : 675 000 MT

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24. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

25. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

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27. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Pellet DRI Slabs-Billets DRI Billets SLAB 6.1 3.8 3.7 7.2 4.6 4.0 1.0 1.5 Processes Cap. Mt/y Plan Mt/y

28. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. Expansion Projects Increasing Capacity KSC 0.8 MMt/y SSC 1 MMt/y 1989200620092017 3.2 5 Trend of Production & Capacity 1989- 2017 MMT 1.55 2.4 Production Capacity

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

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

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

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

33. 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 )

34. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co. m.Abbaszadeh@ksc.ir Thank you for Your Attention

35. Khouzestan Steel Co. Khouzestan Steel Steel Co. Co.

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