Essar Ports LtdEssar Ports LtdPerformance UpdateQuarter ended 30th Sept 2011Quarter ended 30 Sept 2011

Ports in India – A High Growth Market

31263500

g

Projected Total Cargo Traffic Growth Commodity-wise Outlook

452450500 CAGR-8%

884

20192495

6601088

2591

10001500200025003000

Traffic

Capacity

MM

TPA

307

101139

114

248194 210

150200250300350400

MM

TPA CAGR-13%CAGR-7%

CAGR-20%

570 660

0500

1000

2005-06 2010-11 2016-17 2019-20

M

I di ’ I t ti l T d F t E t d G th f N M j tSource: Crisil Research Ports Annual Review

050

100

POL Coal Iron ore Container2009-10 2014-15(E)

538

698

600

700

800

India’s International Trade Faster Expected Growth for Non Major ports

n

1666

617

1459

1000

1500

2000

MTP

A

179

359

456

287

200

300

400

500

USD

Bn

346617

0

500

2010 2020Non Major Ports Major Ports

MM

I t t t d b t 2010 2020 R103 149

0

100

2006 2010* 2013E 2015EExports Imports

Indian economy to continue with 8 9% GDP growth rateSource: Department of Commerce Source: India Maritime Agenda, MoS

Investment expected between 2010 – 2020 Rs croreMinor Ports 167,000Major Ports 110,000Total 277,000

Indian economy to continue with 8-9% GDP growth rateConsistently high growth in India’s international trade to result in higher trafficStrong demand drivers to support long term steady cargo: Upcoming projects consisting of major coastal power plants, refineries, steel plants etc. to meet the requirements of a growing economy

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Essar Ports: Overview

Operational

58* MTPA Liquid Terminal at Vadinar

Vadinar

58* MTPA Liquid Terminal at Vadinar30 MTPA Dry Bulk / General Cargo Terminal at Hazira

Salaya

Paradip I (Iron ore)16 MTPA Iron Ore Berth at Paradip20 MTPA Dry Bulk Terminal at Salaya

Under Construction

HaziraINDIA

BAY of BENGAL

Paradip II (Coal)

20 MTPA General Cargo Terminal (expansion) at Hazira

Under Development

INDIAN OCEAN Hinterland for Essar Ports

(expansion) at Hazira14 MTPA Coal Terminal at ParadipLiquid Storage Terminal (expansion) at Vadinar

Hinterland for Essar Ports

3 stand-alone ports on the West Coast and 2 terminals on the East Coast of IndiaPresence in strategic locations of east and west coast High visibility on revenue with long term Take-or-Pay contracts

* 12 MTPA Vadinar Liquid Terminal Expansion commissioned in April 2011

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High visibility on revenue with long term Take or Pay contracts Current capacity of 88 MTPA being scaled up to 158 MTPA by FY 2014. Further scalability possible at most locations High operating margins at both the operating ports

Essar Ports: Key Highlightsy g g

Essar Ports achieved cargo handling of 9.73 MMT during Q1 FY12 as against 9.63 MMT in Q2 FY11

Essar Ports revenue increased to Rs 279.14 crore for Q2 FY12 as against Rs 178.96 crore in Q2 FY11, an increase of 56% .R i d t R 557 62 f H1 FY12 f R 351 92 f H1 FY11 i f 58%

Cargo handled was 20.93 MMT during H1 FY12 as against 19.46 MMT in H1 FY11

Revenue increased to Rs 557.62 crore for H1 FY12 from Rs 351.92 crore for H1 FY11, an increase of 58%

EBITDA increased to Rs 230.72 crore in Q2 FY12 as against Rs 133.70 crore in Q2 FY11, an increase of 72%EBITDA increase to Rs 451 02 crore in H1 FY12 as against Rs 259 72 crore in H1 FY11 an increase of 73%

Essar Ports PAT increased to Rs 40.84 crore in Q2 FY12 as against Rs 5.30 crore in Q2 FY11, an increase of 671%PAT increased to Rs 80 45 crores in H1 FY12 as against Rs 8 81 crore in H1 FY 11 an increase of 813%

EBITDA increase to Rs 451.02 crore in H1 FY12 as against Rs 259.72 crore in H1 FY11, an increase of 73%

PAT increased to Rs 80.45 crores in H1 FY12 as against Rs 8.81 crore in H1 FY 11, an increase of 813%

Third party coal and project cargo handled at Hazira contributed over 5% of revenues of Hazira for H1 FY12

Average realization per ton for the company improved to Rs 233 in FY12 from Rs 174 in FY11, an increase of 34%

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Hazira: Highlightsg g

Hazira handled 2.94 MMT of cargo in Q2 FY12 as against 2.14 MMT for Q2 FY11, registering a jump of 37%. Cargo handled was 5.74 MMT in H1 FY12 as against 4.20 MMT in H1FY11.

Billed volume for Essar Steel was 4.28 MMT for Q2 FY12 and 8.55 MMT in H1 FY12 as per the Take or Pay contract.

Channel continued operations through the monsoon months highlighting the all weather deep draft capabilities of the terminal

ISO 9001:2008 (Quality Management), ISO 14001:2004 (Health & Safety), OHSAS 18001:2007 (Environment) awarded to EBTL Hazira

Third party coal and project cargo handled at Hazira contributed 5% of revenues for H1 FY12

57 ships handled at Hazira during the quarter

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Vadinar: Highlightsg g

Vadinar handled 6.79 MMT cargo in Q2 FY12 as against 7.49 MMT for Q2 FY11. Cargo handled was 15.20 MMT in H1 FY12 as against 15.26 MMT in H1 FY11

Vadinar Oil Terminal maintenance shutdown synchronised with Essar Oil refinery shutdown covering 13 days of the quarter.

MOU signed with BORL for interconnection of crude oil pipelines

ISO 2800 Security Management system and ISO 9001-2008 Quality Management system certifications renewed successfully

OISD (Oil Industry Safety Directorate) audit carried out successfully. First ever OISD audit for a private terminal in India

69 ships called at the Terminal during the quarter (16 ships called at the SPM and 53 ships at the Jetty)

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Paradip: progressp p g

Conveyor gallery erection at Paradip I

Paradip I (Iron Ore)Paradip I (Iron Ore)66% project completed. Estimated COD: Q4 FY12

Stacker reclaimer erection in progress

Shiploader is erected, stackyard development is under progress

Conveyor erection is under progress

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Conveyor erection is under progress

Salaya: progressy p g

Construction work at Salaya

42% project completed. Estimated COD: Q4 FY14

Ship unloaders are delivered

1 Stacker reclaimer erected, erection of other 2 are under ,progress

Jetty construction and conveyor erection are under progress

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Environment and CRZ clearance are received. Forest clearance awaited for part of the project

Essar Ports: Increasingly diversified cargo split with higher realization

Crude (SPM)Dry Bulk, 4.71

Breakbulk, 0.99 Containers, 0.02 Project Cargo,

0.03 Liquid Intermediate,

1 58 Dry Bulk, 3.90

Breakbulk, 0.30

Crude (SPM), 5.85

Liquid Intermediate,

3.20

Crude (SPM), 7.06Liquid Product

(Road/Rail),

1.58 Dry Bulk, 3.90

Liquid Product (Jetty), 4.21 Liquid Product

(Jetty), 4.16

2.46

Liquid Product (Road/Rail), 1.94 H1FY12 Total Volume 20.93 MMTH1 FY11 Total Volume 19.46 MMT

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Average realization increased to Rs 233 /MT from Rs 174 / MT based on higher tariff for new cargo segments and increasedearnings post commissioning of 12 MMTPA expansion project at Vadinar in April 2011

Growth along with diversification in customer mix

3rd Party

Estimated Revenue Split (FY2012)

Estimated Revenue Split (FY2015)

2%3rd Party

25%

Essar Group98%

Essar Group75%

Capacity: 88 MMTPA Capacity: 158 MMTPACapacity: 88 MMTPAEstimated Utilization: 50%+

Capacity: 158 MMTPAEstimated Utilization:75%+

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Customer mix changing with additional projects and increased utilization levels

Essar Ports: Strong growth in performanceg g p

600

Revenue (Rs Crore)

557.62

450

EBITDA (Rs Crore) 451.02

400

500

600

345.46351.92

300

350

400

450

294.33259.72

300

400

241.25

150

200

250

300

178.79

100

200

109.86

214.72

0

50

100

150

75.16

153.28

0H1 FY11 H1 FY12

Hazira Vadinar

0H1 FY11 H1 FY12

Hazira VadinarEBITDA

Margin 74% EBITDA

Margin 81%

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73% Increase in EBITDA based on: 1. increased volumes, 2. improved realization, and 3. higher EBITDA margins

Essar Ports: Financial Performance

(Figures in Rs Crore) Q2 FY12 Q2 FY11 Q2 FY11

Highlights for Q2 FY12Essar Ports Ltd ESPLL ESPLL(Ports only) (Consol.)

(Includes Shipping Ports, Oilfields

Services &Quarter on Quarter revenue saw a

th f 56% t R 279 14

Highlights for Q2 FY12

Services & Logistics)

Total Income 279.14 178.96 813.3Total Expenses 48.42 45.26 516.4EBITDA 230.72 133.70 297.0

growth of 56% to Rs 279.14 croreand EBITDA saw a growth of 72% toRs 230.72 crore on account of highertariff and increased earnings postcommissioning of Vadinar Expansion

EBITDA Margin 83% 74% 37%Interest and Finance Expenses 107.75 79.04 159.2

Profit Before Depreciation and Tax 122.97 54.66 137.7Depreciation 53 86 41 42 113 4

Based on the above, PAT increasedto Rs 40.84 crore as against a profitof Rs 5.30 crore for the previous year(f P t l ithi th liDepreciation 53.86 41.42 113.4

Profit Before Tax 69.11 13.24 24.4Tax 15.89 3.82 9.3

Adjustment for Share of Minority Interest 12.38 4.12 4.1

(for Ports only within the earlierconsolidated ESPLL)

Debt as on 30th September 2011 Adjustment for Share of Minority Interest 12.38 4.12 4.1Profit After Tax 40.84 5.30 11.0Number of Shares (Crore) 41.05 41.05 61.56EPS (Rs) 0.99 0.13 0.18

(Rs Crore)Operating 3,305Projects 1,709 TOTAL 5,014

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Note: Financials reported as per Indian GAAP

Essar Ports: Financial Performance

(Figures in Rs Crore) H1 FY12 H1 FY11 H1 FY11

Highlights for H1 FY12

Essar Ports Ltd ESPLL ESPLL

(Ports only) (Consol.)(Includes Shipping

Ports, Oilfields Services &

Year on year revenue saw a growth of58% t R 557 62 d EBITDA

Highlights for H1 FY12

Services & Logistics)

Total Income 557.62 351.92 1705.6Total Expenses 106.60 92.20 1070.7EBITDA 451.02 259.72 634.9

58% to Rs 557.62 crore and EBITDAsaw a growth of 73% to Rs 451.02crore on account of higher tariff andincreased earnings postcommissioning of Vadinar Expansion

EBITDA Margin 81% 74% 37%Interest and Finance Expenses 205.14 155.52 317.5

Profit Before Depreciation and Tax 245.88 104.20 317.4Depreciation 105 10 79 87 230 2

Based on the above, PAT increasedto Rs 80.45 crore as against a profitof Rs 8.81 crore for the previous year(f P t l ithi th liDepreciation 105.10 79.87 230.2

Profit Before Tax 140.78 24.33 87.2Tax 39.08 7.53 28.8

Adjustment for Share of Minority Interest 21.25 7.99 8.0

(for Ports only within the earlierconsolidated ESPLL)

Earnings per share for portsincreased to Rs 1 96/share inAdjustment for Share of Minority Interest 21.25 7.99 8.0

Profit After Tax 80.45 8.81 50.5Number of Shares (Crore) 41.05 41.05 61.56EPS (Rs) 1.96 0.21 0.82

increased to Rs 1.96/share inH1FY12 from Rs 0.21/share inH1FY11

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Note: Financials reported as per Indian GAAP

Analyst Contactsy

Mr. Shailesh SawaDirector FinanceEssar Ports LimitedEssar Ports LimitedTel: + 91 22 6660 1506 / + 91 98197 30120Email: shailesh.sawa@essar.com

Mr. Anshumali DwivediHead – Investor RelationsEssar Ports LimitedTel: + 91 22 6660 1100 / + 91 98339 45648Email: anshumali.dwivedi@essar.com

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Legal Disclaimer g

“This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement withrespect to the purchase or sale of any security of Essar Ports Limited (the “Company” or “EPL” or “Essar Ports Limited”)and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

This presentation is not a complete description of the Company. Certain statements in this presentation contain words orphrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties andassumptions that could cause actual results to differ materially from those contemplated by the relevant forward lookingstatement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and therecan be no assurance that future results or events will be consistent with any such opinion estimate or projection Thecan be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Theinformation in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete orcondensed and it may not contain all material information concerning the Company. We do not have any obligation to, anddo not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

All information contained in this presentation has been prepared solely by the Company. No information contained hereinhas been independently verified by anyone else. No representation or warranty (express or implied) of any nature is madenor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of anyinformation, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither theCompany nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on thisp y y p y y y , , g ypresentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced,copied, distributed, shared or disseminated in any other manner.

The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession thispresentation comes should inform them about, and observe, any such restrictions.”

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