CREATION BEYOND VISION

For further information, please visit our website:bg.baosteel.com, or

join our public WeChat “hiBaosteel”

BAOSHAN IRON & STEEL CO., LTD.

Add: 885 Fujin Rd, Baoshan District, Shanghai, 201900Tel: 86-21-26646114 Fax: 86-21-26649000URL: http://bg.baosteel.com Investment hotline: 86-21-26647000 Email: customer@baosteel.com Customer service hotline: 400-820-8590 2016

The year of 2015 witnessed a deep adjustment of the global economy. According to CISA statistics, as the steel market price slumped and the demand from the downstream industry continued to take a downturn, 101 large and medium steel enterprises at home reaped the profit of RMB – 64.53 billion Yuan, with the year-on-year decline of RMB 87.12 billion Yuan and the annual loss rate of 50.5%.

2015 Core Business Data

CReATIon BeYond VISIon

Sales volume Total revenue

Total profit Income tax

net operating cash flow

Asset liability ratio

Unit: million tons Unit: billion yuan

Unit: billion yuan Unit: billion yuan

Unit: billion yuan

Unit: %

22.15 164.12

1.85 1.14

21.18

47.8

earnings per share

Unit: yuan/share

0.06

If we repeat previous successes, we will not move forward.

If we simply follow the footsteps of others, we may lose our way.

What we must do, is to challenge ourselves and attain bigger goals.

That is how we will paint our future.

Baosteel Ltd. was set up by Shanghai Baosteel Group Corporation in February 2000. At the end of that year, Baosteel Ltd. was listed on the Shanghai Stock exchange (stock code: 600019). Baosteel Ltd.'s headquarters are located in Baoshan district, Shanghai. Baosteel Ltd. currently owns three premium steel production bases including Shanghai Baoshan, nanjing Meishan and Guangdong Zhanjiang, covering the entire process production lines of iron-making, steel-making, hot-rolling, heavy plates, cold-rolling, silicon steel, high-speed wire & rod, seamless steel tube, welded tube, etc. The Guangdong Zhanjiang base will be the world's most efficient carbon steel flat product base.

Baosteel Ltd. is committed to sustainable development, with a focus on innovation and green, low-carbon solutions for the entire industry chain. Baosteel developed a new generation of high-strength automotive sheets, grain-oriented silicon steel, and high-end steel products for home appliances, oil and gas pipelines as well as other high-end products that are highly ranked in

the world. More than five new products, such as Medium Manganese Ultra High Strength Steel (1180 MPa), saw their worldwide debut in 2015.

Baosteel maintains its leadership position in the industry with its excellent performance in operation. Fortune China network included the company on the ‘Top 500 Chinese enterprises 2015’ list, ranked no. 26. The company received national Awards for Science and Technology for 14 consecutive years. Indeed, Baosteel is the only company in China to have been awarded these honors every year since 2002.

Looking ahead, Baosteel Ltd. will continue to focus on our main steel business and intelligent manufacturing and ouyeel cloud business in order to achieve its strategic goal of becoming the 'Most Competitive Steel enterprise in the World' and the 'Most Valuable Listed Company.

Company Profile

CReATIon BeYond VISIon01

Baoshan Iron & Steel Co., Ltd. (“Baosteel Ltd.”) is China's biggest and most modern integrated iron and steel company and is the core enterprise of Baosteel Group Corporation (which ranked 218th on Fortune's Global 500 list in 2015). Baosteel's mission is to become the world's first-class steel manufacturer and service provider to enhance the quality of life. The company is committed to provide value-added products and service to customers, and to create maximum value for shareholders and society.

Company Profile

CReATIon BeYond VISIon02 Organization Chart

Strategy & Risk Management CommitteeAuditing Committee

Remuneration & Assessment Committee

Board of Supervisors

Vice Presidents

General Meeting of Shareholders

Board of directors

President

Board of directors' office

Marketing Center

Materials & Spare Parts Purchase dept.

engineering equipment dept.

Research Institute (R&d Center)

Raw Material Purchase Center

Steel Manufacturing

directly Affiliated Production Plants and departments

Baosteel Singapore PTe Ltd.

Bao-trans enterprises Ltd.

Baosteel Zhanjiang Iron & Steel Co., Ltd. Baosteel America Inc.

Shanghai Meishan Iron & Steel Co., Ltd.

HoWA Trading Co., Ltd.

Tube, Pipe and Bar Business Unit Baosteel europe Trading Co.,

Ltd.

Baosteel Huangshi Coating & Galvanizing

Co., Ltd.

Trading and distribution

Shanghai Baosteel International economic &

Trading Co., Ltd.ouyeel Commerce

Co., Ltd.

e-Commerce

Information Technology

Shanghai Baosight Software Co., Ltd.

Finance

Baosteel Group Finance Co., Ltd.

Chemical

Shanghai Baosteel Chemical Co., Ltd.

Administrative office

Financial dept.

HR dept.

Audit dept.

Supervision dept.

Security dept.

operational Improvement dept.

Investment Managementdept.

energy and environmental Protection dept.

Strategy & Sci-Tech dept.

Legal Affairs dept.

Corporate Culture dept.

CReATIon BeYond VISIon03

Business Structure

CReATIon BeYond VISIon03

Baosteel serves as one of the most updated giant steel conglomerates at home and abroad, dedicated to the steel industry as well as the steel business-related businesses, such as processing and distribution, chemicals, information technology, finance and e-commerce.

Business Structure

Iron &Steel 

E-Commerce

IT

Coal Chemical

Processing &Distribution

Finance

Not only do we rely on one another in surviving,

we also motivate each other, sharing our brightest ideas and innovations.

By advancing our technology and exceling our service,

we continue to push for a balanced relationship with the environment.

CReATIon BeYond VISIon05 Business Philosophy

Fortune

Corporate VisionTo be leader in steel technology.To be the best practitioner of environmental friendship.To set the example of common development of enterprise and employees.

Core ValueIntegrity, cooperation.

Social ResponsibilityThe company devotes itself to create value and bring about greater benefits for its shareholders, customers, suppliers, employees, and the society as a whole. By doing so, the company strives to grow with its people and community.

MissionTo become the most competitive steel company and the most valuable listed company in the world.

Business Philosophy

Creation Beyond Vision

CReATIon BeYond VISIon06 Development Strategy

01

02－1 02－2

Using iron and steel as the principal feature to strengthen our comprehensive competitive capabilities. In turn, we can improve in five important areas: cost, technology, service, intelligent manufacturing, and integrating the steel factory with the city.

Through intelligent manufacturing, our goal is to generate a second party iron and steel ecosystem service platform that involves Baosteel, its suppliers, clients, as well as the processing and logistics areas, among others in the supply chain. By using personalized service, we can improve and respond to our customers in a timely manner, thus producing a new advantage within the country.

Cooperation, sharing, and trust are the three main pillars of Baosteel value. The pr inciples al low us to create a manufacturing system that uses logistics, the Internet, Big data, the Internet of Things, and mobile Internet as our fundational facilities; finance in the form of a industrial chain as our core service; iron and steel techniques as our central competitive power; and the usage of Big data as our prospective vision. As a result, we created a third-party public platform for iron and steel services, constructing the most dynamic service ecosphere within the industry.

Strategy of“A Body With Two Wings”

02The two wings of our development strategy involve using intelligent m a n u f a c t u r i n g a n d t h e i r o n and steel ecosystem balancing platform, ouyeel cloud business, to motivate further development of the corporation.

AMERICA

CANADA

MEXICO

BRAZIL

Global Sales and ServiceCReATIon BeYond VISIon07

10

08

12

09

07Overseas Subsidies

11

Domestic Marketing System

BAOSTEEL MIDDLE EAST FZEAdd: P.o.Box 262045, dubai, UAeTel: 00971-4-8840458 Fax: 00971-4-8840485

03

BAOSTEEL EUROPE GMBHAdd: Baosteel europe Gmbh nonnenstieg 1 20149 Hamburg Germany Tel: 0049-40-41994156 Fax: 0049-40-41994130

01

BAOSTEEL ITALIA DISTRIBUTION CENTER SPAAdd: Via XII ottobre 2-14 Piano, Genova 16121, ItalyTel: 0039-010-5308872 Fax: 0039-010-5308874

04

BAOSTEEL ESPAÑA, S.L.Add: edificio Trade(Torre norte)Gran Vía Carlos III,98 1-4A 08028 Barcelona SpainTel: 0034-93-4119325 Fax: 0034-93-4119330

02

BAOSTEEL CENTRAL AND EAST EUROPE REPRESENTATIVE OFFICEAdd: UL. Chorzowska 50, 40-121 Katowice, PolandTel: 0048-32-7315012 Fax: 0048-32-7315011

05

SHANGHAI OFFICEAdd: 2304, 151 Mohe Rd, Baoshan district, Shanghai 201999Tel: 0086-21-26640567Fax: 0086-21-26640577

06

MEXICO OFFICEAdd: Rm 1204,Torre esmeralda II, Blvd. Avila Camacho #36, Col. Lomas de Chapultepec, del. Miguel Hidalgo, Cp. 11000, Mexico, d.F. Tel: 0052-55-91711788 Fax: 0052-55-91711787

10

LOS ANGELES OFFICEAdd: Tower 17, Suite 1180 18881 Von Karman Avenue Irvine, Ca 92612 USATel: 001-949-7526789 Fax: 001-949-7521234

08

BAOSTEEL AMERICA INC.Add: 85 Chestnut Ridge Rd. Montvale, new Jersey 07645, USATel: 001-201-3073355 Fax: 001-201-3073358

07

CANADA OFFICEAdd: Suite 302, 941 Rutherford road, Vaughan, ontario, L6A 1S2Tel: 001-905-7315885

09

HOWA TRADING CO.,LTD.Add: Howa Bldg., 15 Banchi, Ichiban-Cho, Chiyoda-Ku, Tokyo, 102-0082, JapanTel: 0081-3-32379121 Fax: 0081-3-32379123

14

MELBOURNE OFFICEAdd: Suite 302,140 Bourke Street, Melbourne, VIC3000 AUTel: 03-96636830 Fax: 03-96636835

17

BGM CO., LTDAdd: 718-124,Sekpo-Li, Jangan-Myen, Hwasung-Si, Kyongki-do, KoreaTel: 0082-70-4225910 Fax: 0082-31-3514558

18

SEOUL OFFICEAdd: 10F, Hong-Woo Bldg., 945-1 daechi-dong, Gangnam-Gu, Seoul, KoreaTel: 0082-2-5080893 Fax: 0082-2-5080891

15

BAO AUSTRALIA PTY LTD.Add: 1F, 189 St. George'S Terrace, Perth, WA 6000, Australia Tel: 0061-8-94810535 Fax: 0061-8-94810536

16

BAOSTEEL DO BRAZIL LTDA.Add: Av. dr. Chucri Zaidan 1550, Sala 1902, Chacara Santo Antonio, Sao Paulo, SP, Brazil CePTel: 0055-11-26678869 Fax: 0055-11-26678879

11

SHANGHAI OFFICEAdd: 2313, 151 Mohe Rd, Baoshan district, Shanghai 201999Tel: 0086-21-26640695Fax: 0086-21-26640697

13

CALGARY OFFICETel: 001-403-452-1908 Fax: 001-403-452-1428

12

GERMANY

SPAIN

THE UNITED ARAB EMIRATES

ITALY

POLAND

SINGAPORE

JAPAN

TAIWAN

VIETNAMTHAILAND

INDIA

INDONESIA

KOREA

AUSTRALIA

CHINA

SHANGHAI

02 04

05

0613

2026

0324

2322

2521

19

18

140603

02

01 07 08

04

05

15

01

Overseas Subsidies

Domestic Marketing System

16

17

KAOHSIUNG OFFICEAdd: 5F A4, no.6, Siwei 3rd Road, Lingya district, Kaohsiung City 802 TaiwanTel: 00886-7-335-6606 Fax: 00886-7-335-6609

19

SHANGHAI OFFICEAdd: 2309 , 151 Mohe Rd, Baoshan district, Shanghai 201999Tel: 0086-21-66780013Fax: 0086-21-66780012

20

THAILAND REPRESENTATIVE OFFICEAdd: Unit 5, 15F Capital Tower, All Seasons Place, 87/2 Wireless Road, Lumpini Pathumewan, Bangkok10330, ThailandTel: 0066-2-6368485 Fax: 0066-2-2348989

23

VIETNAM REPRESENTATIVE OFFICEAdd: Saigon Riverside office Center, Unit 908 2A-4A Ton duc Thang Street, Ho Chi Minh City, Vietnam Tel: 0084-8-9100126 Fax: 0084-8-9100124

22

INDONESIA REPRESENTATIVE OFFICEAdd: Wisma GKBI, Suite 3708, 37F, JI. Jend. Sudirman no, 28, Jakarta 10210, IndonesiaTel: 0062 21 5790 6240-1 Fax: 0062 21 5790 1599

25

SHANGHAI REPRESENTATIVE OFFICEAdd: 2310, 151 Mohe Rd, Baoshan district, Shanghai 201999Tel: 0086-21-26640590Fax: 0086-21-26640585

26

BAOSTEEL INDIA COMPANY PRIVATE LIMITED Add: office. no. 602, C & B Square, 127 Andheri Kurla Road, Andheri east , Mumbai 400 059, IndiaTel: 91-22-30071700 Fax: 91-22-30071777

24

BAOSTEEL SINGAPORE PTE LTDAdd: 7 Temasek Boulevard, Suntec Tower one, #40-02/03, Singapore 038987 Tel: 0065-63336818 Fax: 0065-63336819

21

SHANGHAI BAOSTEEL STEEL PRODUCTS TRADING CO., LTD.Add: 3 & 12/F, 370 Pudian Rd, Pudong new district, Shanghai 200122Tel: 021-50509696 Fax: 021-68404618

01 SHENYANG BAOSTEEL NORTH-EASTERN TRADING CO., LTD.Add: 78 Guanquan Rd., dadong district, Shenyang, Liaoning 110044Tel: 024-62220699 Fax: 024-88210189

06

GUANGZHOU BAOSTEEL SOUTHERN TRADING CO., LTD.Add: 13/F, Building A1, no. 191, Science Ave., Guangzhou, Guangdong 510663 Tel: 020-32219999 Fax: 020-32219555

02 SHANGHAI BAOSTEEL TRADING CO., LTD.Add: 7/F, 151 Mohe Rd, Baoshan district, Shanghai 201999Tel: 021-26640781 Fax: 021-26640700

07

BEIJING BAOSTEEL NORTHERN TRADING CO., LTD.Add: 16/F, Baosteel Bld. no. C-12, Jianguomenwai Ave., Chaoyang district, Beijing 100022Tel: 010-56512000 Fax: 010-56512199-6703

03 SHANGHAI BAOSTEEL PUDONG INTERNATIONAL TRADING CO., LTD.Add: 6/F, 151 Mohe Rd, Baoshan district, Shanghai 201999Tel: 021-26640606 Fax: 021-26640666

08

CHENGDU BAOSTEEL WESTERN TRADING CO., LTD.Add: 11/F West Building La defense Mansion, no.1480 Tianfu Ave., Chengdu 610041Tel: 028-85335388 Fax: 028-85335680

04

WUHAN BAOSTEEL CENTRAL CHINA TRADING CO., LTD.Add: no. 531, Jiangcheng Ave., economic and Technical development Area, Wuhan, Hubei 430056Tel: 027-84298800 Fax: 027-84298224

05

Company Highlights

CReATIon BeYond VISIon09 Company Highlights

The world premiere of five new products including ultra-high strength medium manganese steel (118 0Mpa) was real ize d; T hre e achievement s including development and Application of Pickling & Tandem Cold Mill Process Technology for High Grade non-oriented Silicon Steel won the first prize of Metallurgical Science and Technology Progress Award; A Kind of Cold-rolled Galvanized dual Phase Steel and Its Manufacturing Method and other two projects won Chinese Patent Award of excellence.

The Company carried forward automotive sheet eVI and brand construction, and held the Third Baosteel eVI Forum and news Conference of BCB; Both cold-rolled automotive sheet and ultra-high strength steel have gained more than 50% domestic market share; oriented silicon steel has gained up to 45% market share in UHV AC/ dC engineering, which made the Company the first domestic steel supplier who supplies non-oriented and oriented silicon steel to nuclear power sector.

Baosteel Co., Ltd. won the Supply Chain Management Improvement excellence Award issued by the British Standards Institution (BSI). The company has worked with the BSI in developing the Key Material Process Quality Stability Study Project for three consecutive years, not only putting out excellent management methods but also substantially improved the physical quality of the product, reducing the scrap rate.The Company has overcome unfavorable factors such as

declined profit and safeguarded the control over capital, with RMB 21.18 billion of annual net cash f low from operating activities and 47.8% asset-liability ratio.

The construction of Zhanjiang Steel Project progressed smoothly: no. 1 blast furnace tapped iron successfully on Sep. 26; Hot load test of steel-making plant succeeded on Sep. 28; 2250 hot rolling project realized hot load test run on dec., 15 ahead of schedule.

Total energy consumption continued the decline, with 60 thousand tons of standard coal less year-on-year; The Company, with its great effort on emission reduction, has overfulfilled its annual and “the Twelfth Five Year” emission reduction goal set by the government; 90 mw photovoltaic power station has been estimated annual generation capacity of 70 million kilowatts.

The Company has been awarded China enterprise Top 100 and China Star enterprise, continued to be conferred as Most Admired Listed Companies Top 100 by Investors, and elected as Great China Best Investor Relations (material sector) by IR Magazine, a celebrated institution.

CReATIon BeYond VISIon10

The Company established ouyeel Commerce Co., Ltd, with 8.88 million tons of annual e-commerce business volume and RMB 19.8 billion sales revenue realized, signed strategic cooperation agreement with 15 banks, with more than RMB 160 billion of line of credit, the highest among internet finance industry. “Bao Cloud” has been exclusively awarded the title of “2015 China Golden Service-The Most Influential Supplier in Cloud Computing”.

Baosteel was selected in Fortune of Chinese network in 2015 for China's top 500 list (business income ranking), ranking 26th; and the Company was selected for the Forbes global market value top 2000, ranking 402th.

Many questions in the world can be answered by progress and development,

but what will push us to go further

is our courage and the willingness to take responsibilities.

To repay a world that has o�ered us so much,

we must show it love and create a better society.

CReATIon BeYond VISIon12 Environmental Operations

The total annual amount of pollutant emission continues to decline, with significant year-to-year drop on the seven main pollutants including smoke, dust and sulfur dioxide.

Reduced pollutant emission

Complete the world's largest roof photovoltaic power generation project with an annual power generation of 39.09 million KWH and a decline of 31,800 tons of carbon dioxide emission.

Construction of photovoltaic power generation projects

With efforts in processes of energy savings, a specific technical energy saving plan, and an energy contract performance management, the company takes the lead in applying energy saving technologies and equipment such as TRT, CdQ and CCPP in China and exceeds national energy-saving targets.

Energy saving target attained

Strive to be an environment-friendly practitioner, complete the upgrading and reconstruction of the Baosteel plant area Water & Air Quality Automatic detection System, take the lead in releasing to the public the environmental monitoring data from state-controlled key sources, and accept social supervision actively.

Publishing environmental monitoring information

As one of the carbon emission trade experimenting corporations in Shanghai, Baosteel Ltd. began conducting such business in november, 2013.

In April, 2014, Baosteel Ltd. completed its first carbon business transaction, resulting in profit from selling its surplus carbon emission quota at the Shanghai environment and energy exchange.

In 2015, Baosteel Ltd. accepted the inspection by the Shanghai energy Saving emission Reduction (eSeR) and completed its 2014 quota clearance.

Carbon Emissions Permit Trading

CReATIon BeYond VISIon13 Product Overview

B a o s t e e l h o t- r o l l e d s t e e l i s mainly used in the industries to manufacture ships, automobiles, bridges, buildings, machinery, and pressure vessels.

B a o s t e e l H R s t e e l i s m a i n l y used in the automobile, home appliance, hardware parts and general machinery manufacturing industries.

Hot-rolled Steel

HR Steel (Pickled)

Baosteel cold - rol led steel is mainly used in the automobile, h o m e ap p l ian ce, machin e r y and hardware manufacturing industries.

Baosteel galvanized steel is mainly used in the automobile, home appliance and building industries.

Baosteel prepainted steel is mainly used in the building and home appliance industries.

Cold-rolled Steel

Galvanized Steel

Prepainted Steel

Baosteel tin plate and TFS are mainly used in the packaging industry for products such as food, chemical paint, oil and medicines.

Baosteel electrical steel is mainly used in the electrical transformer and motor industries.

Baosteel heavy plates are mainly used in the industries for ship-building, of fshore plat forms, boilers, pressure vessels, pipelines, bridges, heavy duty trucks and for the building industry.

Baosteel pipe & tube steel is mainly used for the manufacturing of structural pipes, boilers and conveyor pipes.

Baosteel bar & wire rod steel is mainly used in the automobile, bridges, machinery and building industries.

Tin Plate and TFS(ECCS)

Electrical Steel

Heavy Plates

Pipe & Tube

Bar & Wire Rod

CReATIon BeYond VISIon15 Production Process Flow

Coal

Iron ore

Blooming mill

Round billet Seamless tube mill Seamless tube

BOF

EAFScrap steel

CCSquare billet Round billet

Die casting Die cast billet

CCCC slab

Wire rod

Square bloom

Round bloom

Bloom slab

Cold-rolled products

Hot-dip galvanized products

Electric steel products

Color-coated products

Pickled products

Electro-galvanized products

Electrolytic tinplate/Cr electroplated products

Square billet

2050MM HSM

2030MM TCM

1550MM TCM

1420MM TCM

1220MM TCM

1730MM TCM

1800MM TCM

Single stand (5)

1580MM HSM

1880MM HSM

Hot-rolled products

Heavy plate millHeat treatment Heavy plate UOE line UOE pipe

HFW tubeHFW line

High speed wire rod mill

Sintering machine

Coke oven

Blast furnace

Torpedo car

It is only if we cherish our environment

that we can grow up in the bosom of the city itself.

We must take environmentally friendly and sustainable actions

in order to create and maintain a better ecosystem.

CREATION BEYOND VISION

For further information, please visit our website:bg.baosteel.com, or

join our public WeChat “hiBaosteel”

BAOSHAN IRON & STEEL CO., LTD.

Add: 885 Fujin Rd, Baoshan District, Shanghai, 201900Tel: 86-21-26646114 Fax: 86-21-26649000URL: http://bg.baosteel.com Investment hotline: 86-21-26647000 Email: customer@baosteel.com Customer service hotline: 400-820-8590 2016