CORPORATE OVERVIEW DANIELI GROUP

DANIELI THE RELIABLE INNOVATIVE TEAM IN THE METALS INDUSTRY

London, 5 December 2007

Content
INTRODUCTION
Danieli at the glance A worldwide operator Structure Ownership Products and Markets Prospective for the market International growth A turnaround history Products portfolio

DANIELI: ENGINEERING & CONSTRUCTION DIVISION

ABS: STEEL MAKING DIVISION

DANIELI GROUP FINANCIAL HIGHLIGHTS

Basic items Actual and forecasted trend Capex Order backlog Shares performance

DANIELI ENGINEERING & MANUFACTURING DIVISION

Danieli Headquarters

Danieli at a glance
Danieli was founded in 1914 and since the beginning was one of the pioneers to use electric arc furnaces in steelmaking and in the industrial application of the minimill concept. Danieli designs, manufactures, erects and start up steel plants and equipment both on turn key and single units supply basis and operates amongst the three largest worldwide suppliers of equipment and plants to the steel industry. Danieli is also directely involved in the steel sector through ABS, the Steelmaking Division fully owned. Danieli is worldwide recognized as one of the most innovative and reliable operator in the steel industry and operates with eleven design center, five production units and four engineering departments:

- Buttrio, Italy (Danieli headquarters), - Meinerzhagen, Germany (Danieli Frhling) - Beijing, China (Danieli Metallurgical Beijing) - Bangkok, Thailand (Danieli Far East) - Shanghai, China (Danieli Changsu)

Danieli operates with his own modern workshop to manufacture all nobles parts of the plants and is historically focused on a constant technological improvement.
- Ukraina: Danieli Heavy Machinery - Polska: Danieli Polska - Romania: Danieli Romania - Spain: Procome SA - Germany: W+K Gmbh - Austria: Danieli Engineering Service Gmbh - Japan: Danieli Engineering Japan
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A worldwide operator

Construction / Engineering ITALY - ROMANIA - SPAIN - INDIA THAILAND - P.R. CHINA - AUSTRIA

Engineering USA - FRANCE - UK - THE NETHERLANDS - SWEDEN POLAND - GERMANY - UKRAINA - JAPAN

Danieli group structure

DANIELI ITALY

Industrielle Beteiligung SA

LUXEMBOURG

Danieli International SA

LUXEMBOURG

EUROPE

AMERICA

ASIA

ITALY

NETHERLANDS UK GERMANY AUSTRIA

SWEDEN POLAND UKRAINE RUSSIA

Danieli Centro Maskin Danieli Centro Met Morgrdshammar AB Sund Birsta AB Danieli Polska Engineering Danieli Heavy Machinery Danieli Russia Engineering

FRANCE SPAIN
Rotelec SA Danieli Iberica SA Procome SA

USA CANADA
Danieli Corporation inc Danieli Technology Inc Morgardshammar Inc Danieli Canada Inc

CHINA THAILAND INDIA JAPAN

Danieli Metallurgical Equipment Beijing Danieli Metallurgical Equipment Changshu Danieli Engineering India Danieli Far East Danieli Engineering Japan

Danieli Corus TS Danieli Engineering Danieli Danieli Centro Metallics Davy Distington Ltd Danieli Centro Met Danieli Frhling Danieli Wean United Danieli Morgrdshammar GmbH W+K Industrie Technik Danieli Centro Tube GmbH Danieli Centro Maskin Danieli Engineering & Danieli Breda Services GmbH Danieli Environment Danieli Service Danieli Construction Spa Danieli Automation Spa Danieli Centro Combustion Spa Stem Srl Inde Spa More Srl

Investment Holding Companies Product Lines Industrial Companies Technical Offices

Ownership
DANIELI is listed in the Italian Stock Exchange since 1984. The shares capital amount is divided into 81,304,566 shares consisting: - 40,879,533 ordinary shares - 40,425,033 preferred shares Main shareholders, on last General Assembly date, are: SIND INTERNATIONAL 65.18% 2.92% 2.70% 2.38% 73.18%

(owned by Mr. Benedetti and Danieli family)

Bank of New York, Luxembourg S.A. Credit Suisse Securities Europe Limited DANIELI & C. Spa TOTAL

Danieli Engineering and Construction divisions

Ironmaking/ Steelmaking Flat products/ Hot

Engineering

Flat products/ Cold

Customer service

Long products/ Rolling

Extrusion, forging

Automation/ Process Control

Danieli Engineering and Construction - Products operations Modern Blast Furnace and market
DANIELI is involved in both the construction and sale of plants for the iron and steel industry, offering a range of machines from primary process management to production of the finished product: practically from ore to finished product. In summary, the Danieli Group designs and builds plants for all process areas, such as: - Pellet production plants ; - Blast furnaces; - Direct reduction; - Steelworks for production of liquid steel; - Continuous casting for: Blooms and billets, slabs and thin slabs; - Rolling mills for long products; - Rolling mills for seamless tubes; - Hot and cold rolling mills for flat products; - Process lines for flat products; - Plants for secondary processing, forging processing and extrusion processing; Portfolio can be summarise in four main classes: - Processing products (Pelletising, DRI and Blast Furnaces plants) - Steel making and casting Products - Long Products - Flat Products
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Danieli Engineering and Construction - Products and market

DANIELI is organized to provide a top performance supply either for simple new equipment, revamping or a turnkey project (that are antithetic in terms of value & complexity). Thanks to synergy with other Companies belonging to the Group, DANIELI is fully subsidizing engineering, manufacturing (electrical, automation, mechanical & civil), project management, erection, commissioning and after sales service.

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Danieli Engineering and Construction - Products and market

DANIE COR S LI U

DANIELI COR S U

DANIE COR S LI U

DANIE D AVYDIS LI TINGTON DANIE R LEC LI OTE

DANIE WEAN UNITE D LI DANIE CE O COMBUSTIO N LI NTR

DANIELI WE UNITE D AN

COKE PLANT

BLAST FURNACE

BASIC OXYGEN CONVERTER

SLAB CONTINUOUS CASTING

PLATE AND HOT STRIP MILL

COLD PLATE FINISHING

DANIE WE UNITE D LI AN DANIE R LEC LI OTE

DANIE WEAN UNITE D LI DANIE CE O COMBUSTIO N LI NTR DANIE R LEC LI OTE

DANIELI WE UNITE D AN DANIELI FR HLIN G

DANIELI WE UNITE D AN DANIELI CE O COMBUS NTR TIO N DANIE FR LI HLIN G

DANIE W+K INDUS IETE LI TR CHNI K

THIN SLAB CONTINUOUS CASTING

HOT STRIP MILL

COLD STRIP/FOIL MILL

STRIP PROCESSING LINES

WELDED PIPE LINES

DANIELI CENTRO ME TALLICS

DANIELI CE O ME T NTR

DANIE CENTR ME T LI O

DANIE CE O TUB E LI NTR DANIE CE O COMBUSTIO N LI NTR

IRON ORE MINING, AND PROCESSING

LADLE TREATMENT

VACUUM TREATMENT

TUBE PROCESSING PLANT

Cleaning Pickling Galvanizing Coating Tinning Slitting Cutting-to-lentgh Blanking

DANIE CENTR ME T LI O DANIE R LEC LI OTE

DANIE MOR DSHAMMA R LI GR DANIE CE O COMBUSTIO N LI NTR

BLOOM /BILLET CONTINUOUS CASTING

SECTION MILL

DANIELI CENTRO ME TALLICS

DANIE CE O ME T LI NTR

DANIE MOR DSHAMMA R LI GR DANIE CE O COMBUSTIO N LI NTR

DANIELI CENTR COMBUSTIO N O

DANIE CENTR MAS N LI O KI

DIRECT REDUCTION PLANT

ELECTRIC ARC FURNACE

BAR/WIRE ROD MILL

HEAT TREATMENT

DRAWING, PEELING, GRINDING

DANIE CE O ME T LI NTR

DANIELI CE O ME T NTR

DANIELI BREDA DANIE CE O COMBUSTIO N LI NTR

SCRAP PROCESSING

INGOT CASTING

DIE FORGING

DANIE MOR DSHAMMA R LI GR DANIE CE O COMBUSTIO N LI NTR

BLOOMING MILL

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Danieli Engineering and Construction - Products and market

The total market value for the engineering and construction market will be around 15 billion USD in 2007. 60% of the total market is shared by four big players: SMS, Siemens, VAI, D&C and the Japanese companies. 40% of the remaining market is subdivided by many small companies and medium specialised companies. These players have the capability to compete only on particular technologies and in general they are active in the revamping projects. The peculiarity of the engineering and construction market is the high entry barriers. Only the four big players mentioned above are capable to provide turn key plants and the technology necessary to cover the complete range for the steel business. Therefore, the market is:
SMS VAI - Siemens 30% 30% 25% 15%

40%

60%

DANIELI JAPANESE

Out of 15 billion USD, 50% for equipment and plants for flat products, 45% for long products and the balance for other sectors (tube plants, etc).
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Prospective for the market

The progressive normalization of world politics and the good prospects for future steel consumption are driving our customer to migrate their production to new markets (Brasil, India, Russia and Middle East ) where cheaper transformation process costs are guaranteed A number of trends are clearly identifiable: - Modernization, rationalization and quality upgrades provide the main impetus behind investment in the traditional steel producing regions of Europe and the CIS. There were also signs of a slight upturn in North American investment. - New interest in the hot metal and liquid steel capacity forecasts an additional plant capacity not only in China but also in countries with access to local iron ore reserves, (e.g. Brazil, India, Iran and the CIS states). - On the basis of the growing domestic demand for steel and the availability of local supplies of energy at reasonable cost, we are expecting for new large-scale projects demand , and further expansion-related orders shall be developed the Middle East region.

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International growth
Danieli metamorphosis continued in the last period with a strong internationalization to develop a new global approach to customer service and customer management, as well as ensuring more competitive production with new workshop in China, Thailand and new engineering offices in India, Ukraine and Austria.

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DFE Danieli Far East - Thailand

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DME Danieli Metallurgical Equipment - Beijing

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DME Danieli Metallurgical Equipment - Changshu

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Danieli Engineering & Service - Austria

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DANIELI STEELMAKING DIVISION

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ABS: Danieli Steelmaking Division

LADLE TURRET

ABS ACCIAIERIE BERTOLI SAFAU

TUNNEL FURNACE HIGH SPEED CASTER

ROUGHING / INTERMEDIATE FINISHING MILL DWB TMB WIRE ROD COOLING COIL COMPACTOR

AUTOMATIC STAND CHANGING AND STORING SYSTEM STACKING STATION COOLING BED ON-LINE ANNEALING CHAMBER

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ABS overview

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ABS: Danieli Steelmaking Division - A turnaround hystory

ABS, whose origin dates back in 1909 is based on three production plants in the province of UDINE and supply speciality steels for the most diverse applications: from cars to industrial vehicles, mechanical industry, weldless pipes for mechanical and petrochemical industries, bearings, special sections for railways equipm and re-rolling and forging steels ABS is now become one of the first 4 European players in terms of product selection and volume. In 2006-07 has produced 1,100,000 tons of liquid tapped steel equivalent to 960,000 tonns of sellable products. 300,000 tonns of Big Selection Products has been delivered.
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ABS: Danieli Steelmaking Division - A turnaround hystory

Main issues in the industrial strategy are: - Optimisation and enlargement of new products lines and market shares - Reduction of transformation costs - Improvement in the environmental system - General improvement in product quality - Continuous increase in the export sales Its a turnaround history granted by the management capability to improve the existing production helped by the performance of the steel price together with the increasing of the plant flexibility
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ABS: Danieli Steelmaking Division - Products portfolio

With the aim to develop ABS towards the speciality steel sector, in the last periods the company has developed and invest in the quality of the production process in order to obtain best quality, a wide range of products both in steel grade and in dimension. Nowaday, the ABS products portfolio is made by:
Ingots Conticast sections Forged Products

Rolled products

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Danieli Group Financial Highlights:for Minimills Pig iron basic items

2,457*

2,002*

2,250
1,495*

73*

402

1,150

1,500
978 832 936 967

50 40 30 20 10
36 39 28 22

46* 35*

1,250 1,000 750 500 250 97

857

1,000

730

2,457*

10 10 10 12

99

01

03

05

07

97

99

01

03

05

07

310 346

361

1,750

60

401

428

2,000

432

439

70

508*

2,500

80

600 550 500 450 400 350 300 250 200 150 100 50

553*

97

99

01

03

05

07

Sales revenue

Net income

Net worth

* According to IAS/IFRS

EURO (1,000,000)

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598*

Danieli Group Financial Highlights: actual and forecasted trend

2003/2004 Sales revenue EBITDA EBIT NET INCOME Net financial position Order backlog 1,225 141.4 83.4 21.1 244.9 1,456

2004/2005 1,495 156 80.9 35 221.5 1982

2005/2006 2,002 179.5 91.7 46.8 459.8 2,149

2006/2007 2,456.6 237.5 135.4 73.3 402.7 3,098

Forecast 2007/2008 2,500-2,700 255-275 3,100-3,300

EURO (1,000,000)

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Danieli Group Financial Highlights: ABS trend

2003/2004 Sales revenue EBITDA EBIT NET INCOME Net financial position Order backlog 307.6 10.5 (13.9) (22.6) (264) 110

2004/2005 525.5 50.5 23.7 8.2 (247) 182

2005/2006 529.4 55.5 32.6 13.2 (243) 283

2006/2007 792.8 102.1 71 38 (209) 362

EURO (1,000,000)

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Danieli Group Financial Highlights: CAPEX

Steelmaking 2006/07 2007/08 2008/09 94 111 23 228

Plant making 78 46 24 148

TOTAL 172 157 62 391

EURO (1,000,000)

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Danieli Group Financial Highlights: order backlog items

Other 22% 30%

Long products division

Italy Far East 13% 29%

Steelmaking

12% 34% 16% 20% Flat products division Steel meltshop division Africa & Middle East 17% 7% Europe

Americas

ORDER BACKLOG AT 30/06/07 PER PRODUCT LINE

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ORDER BACKLOG AT 30/06/07 PER GEOGRAPHICAL AREA

Steel & plant making players - Relative performance

320 300 280 260 240 220 200 180 160 140 120 100 80 60
Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07

DJ Euro St Telecom DJ Euro St Insurance "Steel making players" index

DJ Euro St Utilities DJ Euro St Industrials "Plant making players" index

DJ Euro St Oil & Gas DJ Euro St Food & Beverage Danieli

DJ Euro St Banks DJ Euro St Auto

DJ Euro St Telecom DJ Euro St Bank DJ Euro St Food & Beverage DJ Euro St Utilities DJ Euro St Insurance DJ Euro St Auto DJ Euro St Oil & Gas DJ Euro St Industrials "Steel making players" index "Plant making players" index

Performance as of March 12, 2007 since Jan 2006 Jan 2007 7,4% -3,5% 22,0% 0,0% 22,0% -0,1% 32,9% -1,3% 13,7% -1,5% 35,3% 8,9% -1,5% -7,1% 23,4% 3,0% 101,3% 9,0% 52,3% 3,9% 140,2% 1,7%

Source: BNP Paribas

Danieli

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Steel making players - Relative performance

350 330 310 290 270 250 230 210 190 170 150 130 110 90 70 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07

Voestalpine

Outokumpu

Acerinox

Rautaruukki

Danieli

Performance as of March 12, 2007 since Jan 2006 Jan 2007 Voestalpine Outokumpu Acerinox Rautaruukki Average Danieli 131,9% 129,9% 56,0% 76,7% 98,6% 140,2% 17,3% -0,8% -17,4% 22,5% 5,4% 1,7%

Source: BNP Paribas

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Plant making players - Relative performance

330 310 290 270 250 230 210 190 170 150 130 110 90 70 50 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07

Duerr

Foster Wheeler

Danieli

Performance as of March 12, 2007 since Jan 2006 Duerr Foster Wheeler Average Danieli 8,5% 55,6% 32,0% 140,2% Jan 2007 6,4% 3,8% 5,1% 1,7%

Source: BNP Paribas

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Thank you for your kind attention