Company Overview

Sahaviriya Steel Industries Public Company Limited, or SSI, was

established in 1990 as Thailand's first manufacturer of hot-rolled steel sheet in

coils (HRC), with the aim to develop an integrated value-added steel sheet

industry in Thailand, based on high-quality personnel, technological

excellence, and ideal location. This endeavor was supported by the Board of

Investment as one of thirteen primary industries essential to the nation's

economic and social security. Since its creation over a decade ago, SSI has in

numerous ways continued to be a pioneer in Thailand's steel industry. Today

SSI has become the country's largest high-quality and high value-added

steel sheet producer, and now seeks pre-eminent presence as the

leading steel sheet producer for the whole of Southeast Asia.

Sahaviriya Steel Industries PLCSahaviriya Steel Industries PLC

Innovate premium value steel products and services for

customer; generate consistent profit and sustainable value for

stakeholders.

Vision & Mission

Values

1.Product Strategy Premium Value Product Innovated value Product High Grade Unique Product2.Place Strategy Use RFIO Use wireless and computer

with Over Head Crane (OHC)

3.Public Relation Strategy To set Project and Seminar

SSI have achievements some example follow as

Certificates2007:ISO/TS 16949 :2002

Certification for Quality Management System Standards.

2004:Certificate of Laboratory Accreditation (TIS 17025:2000)

Business Strategies Past Achievements

AwardsBest Industry Award The Prime Minister's Best

Industry Award 2003Industry award2010 for The Prime

Minister's Industry Awards for Energy Logisticst

2009 for The Prime Minister's Industry Awards for Productivity Improvement

Past Achievements

*Industrial Standard

National Awards from Ministry of Labour

The Honorary Outstanding Business for Labour Relations and Labour Welfare and Benefits

2010 for Industrial Standard world-class product qualified certificate from Bureau Veritas (BV), France, 2010

50.15%

3.7% 51% 99.99%

Existing Business

30%

16%21%

15%

18%SSI

Local Suppliers

Import Carbon steels

Import Carbon steelsP&O

Import Other (Alloysteel)

Domestic Market Share

Domestic Hot Rolled Steel Industry

Existing Business

In the third quarter of 2012 which have the quantities of productions are 654,483 tonnes that’s increase from 534,831 tonnes in the second quarter of 2012 but less than from prediction 750,000 tonnes that’s reason from stop production of some producers for Domestic which lower than 100,000 tonnes from prediction.

So the quantities of Import Hot Rolled Steel Sheet in the third quarter of 2012 amount 1,002,551 tonnes which increase

9.31 % by compare with in the second quarter of 2012 amount 917,208 tonnes that’s cause an apperent steel supply of Domestic Hot Rolled Steel Sheet in the third quarter of 2012, total amount 1,650,488 tonnes which increase 13.93% by compare with in the second quarter of 2012.

Existing Business

Domestic Hot Rolled Steel Industry

In the 2nd quarter of

2012 (tonnes)

In the 3rd quarter of

2012 (tonnes)

Prediction

In the3rd quarter of

2012 (tonnes)Outcome

in fact

Range of growth

%

Domestic

534,381 750,000 654,483 22.47

Import 917,208 800,000 1,002,551

9.31

Export 2,960 - 6,546 121.15

Total 1,448,629

1,550,000

1,650,488

13.93

Existing Business

External Business Factors

POSITIVES Chinese steel products rose. Demand in Thailand is going to rise. ASEAN’s industrialization and

urbanization has driven and will drive consistent high growth.

NEGETIVES Import due to lack of raw material

regionally Natural disaster – flood in Thailand Tsunami in Japan Economic Crisis in EU

Overall Evaluation of External Business Factors

Demand for steel products in Thailand, and world is estimated to rise.

ASEAN’s industrialization and urbanization has driven and will drive consistent high growth.(53% of total export go to ASEAN)

Thailand is center of world food factory and production hub for automobiles, electrical appliances.

There is high growth in consumption, but served by import from other region due to lack of raw material regionally.

Economic crisis in EU, with fluctuated demand in global steel industry, and witnessed worldwide natural disasters including the great East Japan earthquake and Thailand flood.

Financial Statement Analysis(Ratio Analysis)

Liquidity Ratio: total current assets ÷ total current liabilities

Efficiency Ratio: e xpenses (not including interest expense) ÷

revenue

Profitability Ratio Leverage/Financial Policy Ratio

Liquidity Ratios

2008 2009 2010 Trend

Current Ratio

0.90 0.93 0.98 Up

Quick Ratio 0.23 0.18 0.20 Down

Work Capital (WC)

-1,736 -

1,299.60 

-400.80   Up

Efficiency Ratios

2008 2009 2010 Trend

INVDOH 132.75 168.05 115.93 Down

ARDOH 10.64 44.87 26.25 Up

APDOH 43.99 30.94 22.18 Down

FN 99.40 181.98 120.00 Stable

Profitability Ratios

2008 2009 2010 Trend

Gross Profit Margin

-11.87 9.17 8.28 Up

Net profit Margin

-18.62 3.82 5.09 Up

EBITDA-

3,843.13,078.

64167.3  U p

Leverage/Financial Policy Ratios

2008 2009 2010 Trend

D/E 1.49 1.41 1.14   Down

DSCR -1.76 0.76 1.31   Up

ICR -6.20 2.32 4.09   Up

TIE -6.20 2.32 4.09   Up

Financial Statement Outlook 2011-2012

2011 2012

Liquidity

Efficiency

Profitability

Leverage