WORLD STEEL DYNAMICS

WSD's World-Class Steelmaker Rankings as of June 2012 (page 1 of 3) (Sorted by Highest to Lowest Weighted-Average Score)
1 = least favorable 10 = most favorable

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POSCO South Korea Annual Steel Shipments (MMT) Factor 1 Size 2 Expanding capacity 3 Location in high-growth markets 4 Location close to customers 5 Pricing power in home market 6 Value-added product mix 7 Conversion costs; yields 8 Energy costs 9 Cost-cutting efforts 10 Harnessing tech revolution 11 Iron ore mines 12 Coking coal mines 13 Location to procure raw materials 14 Labor costs Skilled and productive workers 15 16 Liabilities for retired workers Weight 6% 6% 3% 3% 6% 5% 5% 3% 5% 6% 5% 4% 4% 3% 2% 2% 6% 5% 5% 4% 4% 6% 2%

NLMK

CSN

Severstal Russia USA, EU

BaoSteel China

JSW Steel

SAIL

Nippon Steel Japan

Nucor

Sumitomo Metals Japan

MMK

Tata Steel India Europe

Gerdau Brazil N. Amer.

Russia

Brazil

India

India

USA

Russia

39

12

15

43

14

33

20

13

12

24

21

8 8 7 8 9 8 9 6 6 9 6 6 7 7 10 8 6 8 6 9 5 8 10 7.50 1 7.48 1

6 7 8 6 9 6 8 6 7 6 10 10 7 10 7 9 7 9 7 9 4 7 7 7.48 2 7.43 2

4 10 8 9 9 8 7 6 6 6 10 3 7 7 8 8 10 7 8 9 5 8 7 7.37 3 7.42 3

6 7 8 6 9 6 7 6 7 6 10 10 7 9 7 7 8 6 7 9 6 7 7 7.30 6 7.30 4

9 10 9 9 7 8 8 6 6 6 5 6 7 9 8 9 6 7 5 9 4 8 8 7.35 4 7.24 5

5 10 10 7 7 7 10 6 7 8 9 3 7 10 9 9 4 5 6 9 4 9 8 7.35 4 7.21 6

6 10 10 7 7 6 5 6 7 6 10 3 7 9 6 9 7 9 6 9 7 7 8 7.26 7 7.19 7

8 4 4 10 9 10 10 6 6 7 4 3 7 4 10 5 6 9 7 9 10 7 10 7.17 9 7.14 8

7 8 3 7 5 5 10 7 6 9 2 na 6 8 10 8 6 8 5 9 10 10 10 7.23 8 7.09 9

6 4 4 10 10 10 10 6 6 7 3 3 6 4 10 5 8 7 7 9 10 7 10 7.04 10 7.01 10

6 8 8 5 9 5 6 6 7 6 7 7 6 10 6 9 6 9 7 9 4 8 7 7.00 11 6.98 11

7 9 10 7 7 8 8 6 7 6 8 4 7 7 7 7 4 5 6 9 6 8 7 7.00 11 6.94 12

7 8 7 9 8 5 7 6 6 6 na na 6 7 8 8 7 5 7 9 6 8 7 7.00 11 6.93 13

17 Profitability 18 Balance sheet 19 Threat from nearby competitors 20 Environment and safety 21 Downstream businesses 22 M&A, Alliances and JVs 23 Country risk factor Average Score Rank ing (highest is most favorable) Weighted-Average Score Rank ing (highest is most favorable)

Each company included in this list, in WSD's opinion, is positioned to be a "winning performer" in the years ahead. The purpose of the World-Class Steelmak er rank ings is to better understand the companies' attributes rather than to imply that one company is better or more worthy than another. The rank ings reward pro-active management, size, and integration from raw materials to downstream businesses. The rank ing system is subjective and duplicative. World-Class non-Chinese companies represent about 42% of non-Chinese steel product deliveries. World-Class Chinese companies represent about 23% of Chinese deliveries. na=Not applicable. Excluded from the rank ings calculations.
Source: World Steel Dynamics

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WORLD STEEL DYNAMICS

WSD's World-Class Steelmaker Rankings as of June 2012 (page 2 of 3) (Sorted by Highest to Lowest Weighted-Average Score)
1 = least favorable 10 = most favorable

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Erdemir

Hadeed Saudi

Arcelor Mittal Multi

China Steel Taiwan

SDI

Essar India

Usiminas

JFE

Anshan China

Shagang China

Thyssen/ Krupp Germany USA

Evraz Russia N. Amer.

U.S. Steel USA E.Eur.

Turkey Annual Steel Shipments (MMT) Factor Size Expanding capacity Location in high-growth markets Location close to customers Pricing power in home market Value-added product mix Conversion costs; yields Energy costs Cost-cutting efforts Harnessing tech revolution Iron ore mines Coking coal mines Location to procure raw materials Labor costs Skilled and productive workers Liabilities for retired workers Profitability Balance sheet Threat from nearby competitors Environment and safety Downstream businesses M&A, Alliances and JVs Country risk factor Average Score Rank ing (highest is most favorable) Weighted-Average Score Rank ing (highest is most favorable) Weight 6% 6% 3% 3% 6% 5% 5% 3% 5% 6% 5% 4% 4% 3% 2% 2% 6% 5% 5% 4% 4% 6% 2%

Arabia

USA

N. Amer.

Brazil

Japan

USA

97

14

30

30

32

18

17

22

5 7 8 8 8 7 7 5 8 8 6 3 7 8 7 6 6 8 6 9 7 7 7 6.87 16 6.87 14

4 10 10 9 10 6 5 10 6 8 2 3 6 6 6 9 5 9 9 9 3 5 7 7.00 11 6.85 15

10 6 5 7 7 7 8 6 7 6 7 5 6 6 8 5 4 6 6 9 6 10 8 6.74 23 6.81 16

6 6 5 10 10 7 9 6 6 6 3 3 7 6 9 7 6 9 6 9 4 6 9 6.87 16 6.79 17

4 8 3 7 5 5 10 7 6 8 na na 6 8 10 7 7 6 5 9 7 8 10 6.95 15 6.78 18

4 10 9 8 7 6 8 6 6 7 6 6 7 8 6 8 5 4 6 9 4 10 8 6.87 19 6.78 19

5 7 8 9 8 7 7 6 6 6 9 3 7 7 8 8 6 6 8 9 5 8 7 6.87 16 6.78 20

8 4 4 10 9 10 10 6 6 7 4 3 7 4 10 5 1 8 7 9 10 7 8 6.83 21 6.75 21

8 10 9 8 6 6 6 5 6 6 9 3 6 9 6 9 4 7 5 9 4 7 8 6.78 22 6.68 22

8 8 9 10 4 5 9 5 6 6 5 6 6 10 6 10 4 6 4 9 4 9 8 6.84 20 6.61 23

6 7 4 9 8 9 9 6 6 7 4 3 6 4 10 5 4 6 6 9 7 8 10 6.65 24 6.59 24

6 6 7 6 5 5 6 6 7 5 10 10 7 9 5 8 6 4 6 9 3 8 7 6.57 25 6.46 25

7 4 4 8 6 7 7 7 6 6 10 5 7 5 8 5 3 7 7 9 4 8 10 6.54 26 6.44 26

Each company included in this list, in WSD's opinion, is positioned to be a "winning performer" in the years ahead. The purpose of the World-Class Steelmak er rank ings is to better understand the companies' attributes rather than to imply that one company is better or more worthy than another. The rank ings reward pro-active management, size, and integration from raw materials to downstream businesses. The rank ing system is subjective and duplicative. World-Class non-Chinese companies represent about 42% of non-Chinese steel product deliveries. World-Class Chinese companies represent about 23% of Chinese deliveries. na=Not applicable. Excluded from the rank ings calculations.
Source: World Steel Dynamics

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WORLD STEEL DYNAMICS

WSD's World-Class Steelmaker Rankings as of June 2012 (page 3 of 3) (Sorted by Highest to Lowest Weighted-Average Score)
1 = least favorable 10 = most favorable

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Ternium

Voest Alpine Austria

BlueScope Oceania

Vizag

Wuhan

Maanshan China

AK Steel USA

SSAB Sweden

EZZ Steel Egypt

Avg.

Americas Annual Steel Shipments (MMT) Factor Size Expanding capacity Location in high-growth markets Location close to customers Pricing power in home market Value-added product mix Conversion costs; yields Energy costs Cost-cutting efforts Harnessing tech revolution Iron ore mines Coking coal mines Location to procure raw materials Labor costs Skilled and productive workers Liabilities for retired workers Profitability Balance sheet Threat from nearby competitors Environment and safety Downstream businesses M&A, Alliances and JVs Country risk factor Average Score Ranking (highest is most favorable) Weighted-Average Score Ranking (highest is most favorable) Weight 6% 6% 3% 3% 6% 5% 5% 3% 5% 6% 5% 4% 4% 3% 2% 2% 6% 5% 5% 4% 4% 6% 2%

India

China

N. Amer.

10

38

17

18

6 5 8 8 8 7 6 6 7 6 7 3 7 8 8 8 7 6 7 9 6 9 7 6.52 27 6.44 27

4 5 4 10 8 10 9 6 6 6 4 3 6 5 10 5 5 5 7 9 6 7 10 6.52 27 6.36 28

5 4 5 7 9 8 8 6 6 5 3 3 7 5 9 6 3 6 8 9 10 8 9 6.48 29 6.32 29

2 10 10 7 6 4 8 6 6 6 6 2 7 9 6 9 5 8 4 9 4 6 8 6.43 31 6.20 31

8 10 9 8 5 6 7 5 6 6 4 5 5 9 6 9 4 5 5 9 4 6 8 6.48 29 6.30 30

6 10 9 9 5 6 7 5 6 6 3 3 5 9 6 9 5 6 5 9 4 6 8 6.37 32 6.16 32

4 5 3 8 6 8 8 7 7 6 3 3 5 6 9 5 3 5 6 9 4 5 10 6.22 33 5.98 33

4 5 4 7 7 6 8 6 6 6 5 3 6 6 9 7 5 7 6 9 6 6 10 6.17 34 5.96 34

3 4 10 9 8 4 6 5 7 5 na na 7 9 7 8 3 4 8 9 3 4 4 6.05 35 5.71 35

5.96 7.27 6.91 8.04 7.43 6.80 7.81 6.05 6.37 6.45 6.04 4.41 6.47 7.33 7.84 7.38 5.30 6.61 6.44 9.00 5.58 7.37 8.23 6.85

6.73

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Each company included in this list, in WSD's opinion, is positioned to be a "winning performer" in the years ahead. The purpose of the World-Class Steelmak er rank ings is to better understand the companies' attributes rather than to imply that one company is better or more worthy t The rank ings reward pro-active management, size, and integration from raw materials to downstream businesses. The rank ing system is subjective and duplicative. World-Class non-Chinese companies represent about 42% of non-Chinese steel product deliveries. World-Class Chinese companies represent about 23% of Chinese deliv na=Not applicable. Excluded from the rank ings calculations.
Source: World Steel Dynamics

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