Flat Steel Products in MENA 3rd Iran Steel Export Perspectives Conference On September-6, 2016 By Abu Husain

Disclaimer Al Ghurair Iron & Steel L.L.C. (AGIS) has prepared this document to provide general information on The Middle East Economy with relevance to the Steel Industry. AGIS has based the information in this document on primary and secondary researches and analyses. The information obtained from third party sources are all referenced in the relevant slides. AGIS or the presenter do not express or imply any warranty pertaining to the accuracy or completeness of the information contained in this document or of any estimates, forecasts, numbers and assumptions in the presentation. All conclusions are subject to limitations such as time constraints, accuracy and easy availability of third party information. No party shall be entitled to rely upon this document or any part thereof and any use of this presentation requires written permission of AGIS. Under no circumstances shall any party be entitled to assert any right, claim or other entitlement against AGIS or the presenter as a result, or on the basis of this document. Neither AGIS nor the presenter accept any liability of any nature to anyone, to whom the contents of this document or any part thereof is shared with. This document should be construed in light of the accompanying narrations presented at the pertaining conference.

Global Steel Production Steel Consumption & Outlook GCC Projects ME Flat Steel Al Ghurair Iron & Steel (AGIS) Agenda

Global Steel Production Source : AGIS analysis  Recovery since GEC  Has peaked in 2014  CAGR 2.7%

Global Production by Region Source : AGIS analysis 0616  11%10%-1% 2% 0% 10%6%-3% 11%7%-4% 4%2%-1% 1% -1% 1%2%1% 53%69%15% 1%0%

Source : Steel Statistical Year Book, World Steel Association, AGIS Analyses 0.2% 4.9% -1.0% 0.4% 4.0% 3.8% 6.5% 5.7% 0.7% Apparent Steel Use (Crude Steel)

Global Steel Overcapacity Source : OECD  2.3Bn Mts by 2017

Implications of overcapacity  Pressure on pricing  Falling NP  Bankruptcies  Increase in Consolidations

Short Range Outlook for global ASU  Asia makes up for 2/3 rd ASU  2016 Winners Africa (3.8%) NAFTA (3.2%) Other Europe (3.0%)  2017 Expectation Africa (6.4%) ME (3.9%)  China -4.0% in % in 2017 Source : WSA

Source : HSBC Estimates $ Bn Deficit As GDP%  Oil prices down 60% from 2014 Peak  Regional Hydrocarbon earnings down $320Bn Y-o-Y  Regional Deficit reached $150bn in 2015 (8% of GDP)  Could go over $400Bn from MENA Budget Balance

Source : MEED Projects Gulf Projects Index  Oman - $3Bn Power Project  $396m Projects in the UAE  $4.4bn on-hold in KSA

Gulf Projects Change % YoY Source : MEED Projects

ME Contracts Award ($ mil) Source : MEED Projects  Drop from >$25Bn last year and $12bn in Jun to $8.3bn in Jul  No. of contracts decreasing from 51 to 45  UAE at top with 27 contracts worth $2Bn  KSA has the largest contract for $1.3Bn in Power Sector

Source : MENA Steel Market Forecast, Metal Expert  Retail Trade – Steady Growth  People’s Bank of China intervention GDP Growth Rate % Positive Chinese Factor

Positive  Retail Trade – Steady Growth  People’s Bank of China intervention Negative  Industrial Profits on decline  Stock Market Down  Real Estate Down Source : MENA Steel Market Forecast, Metal Expert GDP Growth Rate % Chinese Factor

Commenced Operations Attained Full Capacity ISO Certification 2011 JV with Nippon Steel 2016 Doubling Capacity Al Ghurair Iron & Steel (AGIS)

350k TPA Pickling 350k TPA CR Mill 200k TPA CGL-1 200k TPA CGL-2 Sale to Market Skin Pass 100k HRPO 50k CRFH 200k HDG 350k HRC 250k HRP 200k CRFH 50k CRFH 4 th Acid Tank AGIS Production Lines

Abu Bucker Husain Al Ghurair Iron & Steel LLC