Baoshan Iron & Steel Co.,Ltd.

2015 Full Year Results

March 2016

The following presentation distributed herewith includes forward-looking statements. All statements,

other than statements of historical facts, that address activities, events or developments that Baoshan Iron

& Steel Co.,Ltd.(Baosteel) expects or anticipates will or may occur in the future are forward-looking

statements.

Baosteel’s actual results or developments may differ materially from those indicated by these forward-

looking statements as a result of various factors and uncertainties, including but not limited to price

fluctuations, actual demand, exchange rate fluctuations, competition and other risks and factors beyond

our control.

Disclaimer

Content

1 2015 Results

2 Industry Dynamics

3 2016 Operational Plan

Operation Overview

Steel Ice Age

Unit 2014 2015 YoY

Sales Volume Million tons 21.82 22.15 ↑1.5%

Total Operating Income billion RMB 187.79 164.12 ↓12.6%

Operating Cost billion RMB 168.93 149.26 ↓11.7%

Gross Profit billion RMB 18.60 14.59 ↓21.6%

Gross Margin % 9.86 8.87 ↓10.0%

Total Profit billion RMB 8.28 1.85 ↓77.6%

Net Profit billion RMB 5.79 1.01 ↓82.5%

EPS RMB/share 0.35 0.06 ↓82.5%

BVPS RMB/share 6.94 6.85 ↓1.3%

Net CFO per share RMB/share 1.72 1.29 ↓25.1%

Cash Conversion Cycle days 37.6 21.4 ↓42.9%

Debt to assets ratio % 45.7 47.8 ↑4.7%

LMEs

Revenue 19.05% YoY

Total profit -64.5 billion yuan

Average debt to asset ratio 70%

Company performance shrunk

Utilization rate to 70%

Industry FAI 11% YoY

CSPI at the end of 2015 31% YoY

CSPI: China Steel Price Index

LMEs: Large and medium sized enterprises

million tons 2015 YoY

Crude Steel Output 22.64 ↑ 5.2%

22.00 21.53

22.64

15.00

17.00

19.00

21.00

23.00

2013 2014 2015

21.99 21.82 22.15

1.93 2.27 2.560

5

10

15

20

2013 2014 2015

million tons 2015 YoY

Sales of Finished Products 22.15 ↑ 1.5%

including：export 2.56 ↑ 12.8%

Output & Sales

billion RMB 2015 同比

Operating Income 163.8 ↓12.6%

Operating Cost 149.3 ↓11.7%

189.7 187.4

163.8171.7 168.9

149.3

80

100

120

140

160

180

2013 2014 2015

Operating Income Operating Cost

Operating Income and Cost

14.40% 15.10%

-0.30%

0.80%

14.30%

11.70%

-0.90%

3.60%

-5%

0%

5%

10%

15%

20%

CRC HRC Tube Others

2014 2015

Gross Margins & Sales Breakdown

CRC 43%

HRC 40%

Tube 7%

Others 10%

Sales BreakdownGross Margins

billion RMB Revenue YoYGross

MarginsYoY

Steel Making 96.8 ↓ 19.7% 8.9% ↓1.1ppts

Distribution 140.7 ↓ 13.7% 3.2% ↑0.6ppts

120.6

163.1

96.8

140.7

0

50

100

150

Steel Making Distribution

2014 2015

billion RMB Revenue YoYGross

MarginsYoY

E-commerce 20.1 ↑32.8% 0.13% ↓0.4 ppts

IT 3.9 ↓3.3% 27.3% ↓0.7 ppts

Chemicals 7.6 ↓17.3% 4.9% ↓4.0 ppts

Finance 0.6 ↑1.5% 51.0% ↓1.7 ppts

4.1

9.2

0.6

20.1

3.9

7.6

0.6 0

5

10

15

20

E-commerce IT Chemicals Finance

2014 2015

Segments

In the Ice Age

Fight

Operation Highlights

Technology Innovation

R&D expenses-to-revenue

Sales of New products

Profit contribution (billion RMB)

Research and Development

Debut of new products

Development of new products(grades)

First Prize for Technology Progress of Metallurgy

China Patent Prize Excellence Awards

Patent application

2.11%

1.03

21%

3

828

5

3

122

Customer Service

Baosteel Car Body's debut at the third

session of Baosteel auto sheet EVI

forum.

The market share of CRC auto sheet

and ultra-high strength steel are both

over 50%.

45% market share of Oriented silicon

steel product in extra-high voltage

market.

31+11 EVI service projects in the field

of PTD, home appliances, energy,

transportation and metal packaging etc.

PTD: power transmission and distribution

Customer Recognition

Acquired “Excellent Supplier”

from customers

Environment-friendly

Sludge treatment and reuse created economic benefit more

than 100 million RMB.

Total energy consumption decreased by 60,000 tonsstandard coal YoY.

Photovoltaic power station with capacity of 90 MWHwas put into operation. Annual output is expected toreach 70 GWH.

GREEN

SO2 emission was down by 8.4% YoY.

3 energy saving projects were completed, to save energy 32.46 GW, as 9,738 tons standard coal.

September 25, Zhanjiang Steel No.1 blast furnace was ignited.

September 28, steelmaking project realized hot load test.

Zhanjiang Project

Smooth Construction Progress

October, Operation was resumed rapidly after the typhoon.

Cost of molten iron declined quickly.

December 25, 2250 hot rolling mill project realized hot load test ahead of schedule.

$

Settlement volume 8.88 million tons

Signing strategic cooperation agreement with 15 banks.

Obtaining more than 160 billion RMB of cooperative credit quota.

The highest credit quota in the internet finance industry.

96.9%31.1%

Established Transportation Trading Platform.

Becoming the service provider of 4PL platform.Daily trading volume 20,000 tons. Cooperated warehouses 700+.Turnover capacity 50 million tons.

Registered users 43,000+Income 19.8 billion RMB

Finance

Logistics

E-commerce Progress

On-line Trading

01 02Golden Roundtable

AwardBest in Sector

(Materials)

03

China Association for Public CompaniesIR MagazineDirectors & Boards

Capital market Recognition

The Most Admired Listed Company

1

2

3

2015 Results

Industry Dynamics

2016 Operational Plan

Content

9.5%

7.7% 7.7%

7.4%6.9%7.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2011 2012 2013 2014 2015 2016E

5.4%

2.6% 2.6%

2.0%

1.4%

3.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2011 2012 2013 2014 2015 2016E

GDP CPI

• GDP was down to 6.9% in 2015.

• GDP growth targets at 6.5%-7.0% in 2016,

supply side reform is still the top priority.

• CPI was up 1.4% in 2015, Mild growth in price.

• CPI growth targets at 3.0% in 2016. Prudent

monetary policy is expected to continue.

Date source：Wind

Economy outlook

6.5%

Steel industry outlook

Crude steel output and Apparent consumption

Unit: million tons 2015 同比

Crude steel output 804 ↓ 2.3%

Net export 106 ↑ 25.7%

Apparent consumption 698 ↓ 5.5%

Date source：National Bureau of Statistics, Steelhome, Wind

816 823 804 765 739

698

500

600

700

800

900

2013 2014 2015

Crude steel output Apparent consumption

411.8

505.5 506478.9

425.7

14.60%

-2.04% -2.06%-5.90%

-11%

-15%

-10%

-5%

0%

5%

10%

15%

20%

200

300

400

500

600

2011 2012 2013 2014 2015

Unit: billion RMB

Steel industry FAI

• Crude steel output was 804mn tons in 2015，down

2.03% YoY. Export increased significantly. Apparent

consumption declined for 2 consecutive years.

• Industry FAI decreased for 3 consecutive years.

• China steel consumption reached the peak region.

Steel inventory

0

500

1000

1500

2000

2500

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

总量 长材 板材

Social inventory Steel mill inventory

0

500

1000

1500

2000

2500

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

• Steel social inventory declined gradually. But steel mill inventory was still at high level.

Unit: million tons

Date source：Wind

total Long product Flat product

2014 2015 2016 2014 2015 2016

Unit: million tons

13.71

Steel market

50

60

70

80

90

100

110

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

CSPI Prices

1500

2000

2500

3000

3500

4000

4500

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

热轧 冷轧 螺纹

68.87

3380

24502270

Date source：Wind

Unit: RMB/ton

2014 2015 20162014 2015 2016

• Steel price continued to decrease in 2015, while rebounded quickly at the end of the year.

FAIUnit: trillion RMB

20.6%19.6%

15.7%

• Total FAI was 55 trillion RMB in 2015, up 10% YoY. Growth continued to slow down.

36.543.6

50.255.2

20.6%19.6%

15.7%

10.0%

8%

10%

12%

14%

16%

18%

20%

22%

0

20

40

60

2012 2013 2014 2015

Infrastructure FAI

7.79.4

11.2

13.1

13.7%

21.2%20.3%

17.3%

10%

12%

14%

16%

18%

20%

22%

24%

0

5

10

15

2012 2013 2014 2015

• Infrastructure FAI was 13 trillion RMB, up 47.3% YoY. Growth also continued to slow down.

Date source：Wind

Unit: trillion RMB

Infrastructure

Real estate FAI

20.6%19.6%

15.7%

• Real estate FAI was 9.6 trillion RMB in 2015,up 1% YoY. Growth plunged for 2 years.

New start and Sales growth

7.28.6

9.5 9.616.2%

19.8%

10.5%

1.0%0%

5%

10%

15%

20%

0

5

10

2012 2013 2014 2015

• New construction was down 14% YoY. Sales was up 6.5% due to de-stocking.

-7.3%

13.5%

-10.7%-14.0%

1.8%

17.3%

-7.6%

6.5%

-20.0%

-10.0%

0.0%

10.0%

20.0%

2012 2013 2014 2015

New start Sales growth

Date source：Wind

Real estate

Unit: trillion RMB

Output SalesUnit: million units

• Output and sales were up 3.3% and 4.7% YoY respectively in 2015. Growth slowed down.

• Passenger car sales were more than 20 million units for the first time, up 7.3% YoY,

outperformed commercial car(down 9.0% YoY).

• New energy auto’s strong performance: output and sales were up 330% and 340% YoY

respectively in2015.

19.27

22.1223.72 24.5

4.6%

14.8%

7.3%

3.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

5

10

15

20

25

2012 2013 2014 2015

19.31

21.9823.49

24.6

4.3%

14.0%

6.9%

4.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

5

10

15

20

25

2012 2013 2014 2015

Date source：CAAM

Auto

Unit: million units

Washing Machine Refrigerator

67.42

72.02 71.1472.75

1.4%

8.2%

-3.3%

0.7%

-5%

0%

5%

10%

50

60

70

2012 2013 2014 2015

84.27

93.4187.96 89.93

-3.1%

10.6%

-1.0%-1.9%

-5%

0%

5%

10%

50

60

70

80

90

2012 2013 2014 2015

Air-conditioner TV

• Washing machine and air-conditioner output growth was flat, refrigerator output growth decreased, while TV grew fast in 2015.

133

143 145

157

4.9%

11.6%11.5%

0.0%0%

5%

10%

15%

100

120

140

160

2012 2013 2014 2015

140 140 141

162

7.5%

-0.2%

6.2%7.0%

-5%

0%

5%

10%

15%

80

100

120

140

160

2012 2013 2014 2015

Date source：Wind

Home appliances

Unit: million units Unit: million units Unit: million units Unit: million units

Machinery value added growth

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

General Equipment Special Equipment

Electrical Equipment Transportation Equipment

60 45

39 42

20

70

60

31

107

131

149

123

0

50

100

150

0

20

40

60

80

100

2012 2013 2014 2015

Completion New Orders Carrying orders(right)

Ship building

• Ship building was till depressed. • Machinery experienced moderate growth.

Date source：Wind

Ship building & machinery

Unit: million tonnages

2013 2014 2015 2016

0

20

40

60

80

100

120

140

160

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

Platts（62%） Port inventory

6000

7000

8000

9000

10000

11000

12000

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

Unit: million tons

55.50

9454

Date source：Wind

Raw Material

2014 2015 2016 2014 2015 2016

• Iron ore price continued to decrease until the end of 2015.• Port inventory grew gradually and remained high position.

Coking coal（from Australia） First-grade metallurgical coke

500

700

900

1100

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

500

700

900

1100

1300

1500

1700

2014年1月 2014年6月 2014年11月 2015年4月 2015年9月 2016年2月

• Coke price was still in downward trend in 2015.

680 815

Date source：Wind

Raw Material

Unit: RMB/ton Unit: RMB/ton

2014 2015 2016 2014 2015 2016

1

3

2

2015 Results

Industry Dynamics

2016 Operational Plan

Content

Operational plan

Regular employee efficiency up 3.8%

Total cost cut 4 billion RMB

Net CFO 10 billion RMB

Crude steel output 27.11mn tonsProduct sales volume 23.44mn tonsTotal operating income 160.4 billion RMBOperating cost 149.1 billion RMB

CRC Auto Sheet market share 50%

Best performancein domestic steel industry

Continuous improvement of operation and cost control

No.2 blast furnace is to be ignited in August

Transforming from

construction to operation

Realize positive contribution margin

Crude steel output 4.96mn tons

Note：The output incorporates those of trial production.

Zhanjiang Project

Intelligent Manufacturing

Intelligent HRC plant

Key technology application and research of continuous casting.

Development of Internet purchasing platform.

Settlement volume20 million tons

Cooperated warehouses: 1000+

Turnover capacity 60 million tons

Daily Transactions volume

40,000 tons

Medium and small sized

enterprise users 60000+

Loan balance 10 billion RMB

On-line payment 80 billion RMB

On-line Trading Finance Logistics

$

E-commerce

Internet + Steel