Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Merrill Lynch Global Metals & Mining Conference 2007
29 slides from Bluescope Steel's conference presentation, May 10, 2007
Slide 1: Merrill Lynch Global Metals & Mining Conference
BLUESCOPE STEEL Merrill Lynch Global Metals & Mining Conference
Slide 2: Disclaimer
THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFOR
Slide 3: Introduction and Headlines
Introduction and _ Headlines
Slide 4: BlueScope Steel Overview
— BlueScope Steel Overview = Global flat steel product solutions company — spun out of BHP July 2002 = EV at listing approximately A$3.0B — currently around A$10.0B = Unique production footprint and building products franchise in » Australia / New Zealand » China, SE Asia and India = North America =
Slide 5: Zero harm is our goal for our team and communities
Zero harmis our goal for our team and communities juries per milion man-hours worked 3 2 zg g 2 & & e 3 € 3 2 o € E B 3 1905 1996 1997 1908 190 2000 200E 2002 2003 204 2008 2006 1H 1 1605 1057 1888 1663 200 200} 2002 2003 20K ONS 2005 TR 07 2007 includes Contractor performance from 2004 incfudes Con
Slide 6: Continuing to reward our shareholders as we grow
__ Continuing to reward our shareholders as we grow = Share Buybacks — Public listing to 31 December 2006 » Purchased and cancelled 116m shares — onmarket— 90m shares ~ Off market - 26m shares » Average price paid $6.10 per share Shares on issue ® As at24 April 2007 733.2 million Dividend reinvestme
Slide 7: 1H FY2007 financial results summary
Revenue External despatches EBITDA EBIT NPAT EPS - Reported After Tax Return on Invested Capital Return on Equity Net Operating Cashflow - From operating activities - After capex / investmenis Dividend - Interim ordinary (fully franked) Gearing (net debt) A$4,528M 3.7M tonnes AS794M A$635M A$388M 54
Slide 8: Record sales volumes, driven by strong demand for BlueScope's products
Record sales volumes, driven by strong demand for BlueScope’ Ss _ products | I Exports 9, 31% 15% 15% 5% 4% External Despatches Record Half Key || Exports - Americas Domestic sales (produced and sold within country) BN exports - Asia IMM) Na (NSBSs + caBPNA) New Zealand/Pacific Exports - EuropelMed/
Slide 9: EBIT variance 1H FY2006 to 1H FY2007 by item
BIT variance 1H FY2006 to 1H FY2007 by item EBIT A$ Millions HY December Export Prices — Domestic Volume/ Mix North Star Conversion & Rew Materal Exchange ‘Other HY December 05, Prices: Spread Other Costs Costs Rates OS Note: (*") In late FY2005, BlueScope purchased 300 ~ 400kt of lower priced iron
Slide 10: Cash flow first half
First Half ASM FY2003 FY2006 FY2007 Source : Cashflow from operations 795 563 752 Working capital movement (31) (214) (55) Net cash from operations 764 349 697 Application Capital Expenditure Smorgon Steel shareholding (19.9%) Statutory (tax) ORR Returned to shareholders other ($21 Net Funding Closi
Slide 11: Balance sheet — working capital reductions and lower gearing
Balance sheet — working capital reductions and lower gearing eee financial flexibility As at A$ Millions 30 June 2006 31 December 2006 Assets Cash 62 58 Receivables 1,344 1,181 Inventory 1,329 1,410 Other Assets 783 1,180" Net Fixed Assets 3,743 3,736 Total Assets 7,264 7,565 Liabilities Creditors 9
Slide 12: Performance
hii Performance _
Slide 13: BlueScope business overview by region
Reps bshess eae Australia North America « Lowest quartile « Largest supplier of —. Only fully integrated * Pre-eminent seller of + 50:50 joint venture» Pre-eminent global producer metallic coated and flat steel maker in branded steel in Asia with Cargill Inc. designer / supplier «Leading supplier of
Slide 14: All BlueScope business segments profitable and all growing revenue
Al BlueScope bus ness segments profitable and all growing re venue EBIT variance 1H FY2006 to 1H FY2007 by reporting business segment ne ae EBIT A$ Millions HY December Hot Rolled Coated & NZ &Pacific Coated & Hot Rolled Coated & Corporate & Discontinued KY December 08 Producis Bldg Products islands
Slide 15: Unique production footprint in the world's fastest growing regions
nique production footprint in the world’s fastest growing regions China MC 250kt Painting 150k India ; Metal Coating 250kt Vietnam Painting 150kt MC 125k Painting 50kt Thailand Brisbane Port Kembla / tllawarra Cold Rolling 350kt Painting 90kt Raw Stee! 5.2mt Metal Coating 375kt Hot Rolling 2.8mt (in
Slide 16: BlueScope Steel China
~_BlueScope Stee! China 4H FY2007 REVENUE: A$210M EMPLOYEES: 1,926 INVESTED CAPITAL: A$433M Blue Scope Steel in China e 1 Metal Coating/Paint Line facility 4 Lysaght manufacturing facilities 2 e 2 Butler PEB manufacturing facilities A A 60 Lysaght / CSC sales offices 24 Butler district offices / sal
Slide 17: BlueScope Steel North America
-BlueScope Steel North America BlueScope Steel in North America y tH FY2007 @ | Regional Office * jueScope Steel Sales Offices : @ 4 BlueScone Stee! Sales OFF REVENUE: A$1,317M e North Star Bluescope — Delta OHIO | : EBITDA: A$159M* @ 7 Butler Manufacturing Plants : VU a EMPLOYEES: 4,283* A 12 Butle
Slide 18: Global Steel Industry — BlueScope's Strategy
Midstream De DD y oe) 11% be 5 y if __ [ Global Steel Industry _ BlueScope’s Strategy posco Re Corus + Tata Thyesan Krupp Se waza Crude Stee! Production (i tonnes) mae Revenue (US$) Page 18
Slide 19: Steel production growth
growth | ving dy A China to 2006. - 19501 production | . sie crude owing Lo — =o Compound Annual Growth Rates Saud) VON 8 i AS 1960 1970 1980 1990 2000 2005 1950 HSI, BSL Source
Slide 20: Our strategy remains unchanged
_ Ourstrategy remains unchanged. Focused on diversified and : enue _ Midstream — a | earings sola growing more _ Le ay A « Thailand ~ second metal coating line (MCL2) and ramp up in progress — ramp up CRC « Vietnam — metal coating (MCL) anc paint line (PL) and ramp up in progress « China— MCL and PL
Slide 21: Acquisition of Smorgon Steel's distribution business
~ Acquisition of Smorgon Steel's distribution business (conditional Strategic rationale * Secures BlueScope’s place as the premier supplier and distributor of flat steel products to the Australian market * Brings BlueScope closer to its end customers, consistent with our downstream strategy * Increa
Slide 22: Major project capital and investment spending profile
__ Major project capital and investment spending profile | PROJECTS Projects completed Thailand — Coating expansion 80 80 - ~ - - Vietnam — Coating / Painting 438 136 - ~ - - Ching ~ Coating and boating Facllty 274 256 13 5 - ~ ~ Guangzhou Butler /Lysaghi 33 4 2 ~ - ~ India - Butler / Lysaght facili
Slide 23: Global group sales revenue mix — mid and downstream sales
_ Global group. sales revenue mix — mid and downstream sales fevenue growth powering ahead Downstream Midstream Upstream Discontinued/Other Businesses Total Sales Revenue A$1,350M a 270.6% A$1,166M a a A$315M 15.3% AS$1,511M AS1,238M 28.9% ASI60M A$262M A$280M A$234M AS2,568M A$3,872M AS4.508M 475.5
Slide 24: PEBs
inPEBs ag ee
Slide 25: Global steel industry — our long term view has not changed
Global steel industry — our long term view has not changed _ c = China's steel capacity growth rate slowing Economic growth remains strong » Raw material, energy and internal transport costs * Japan — record steel production likely in 2007 reducing relative competitiveness stoked by domestic demand
Slide 26: Global steel industry consolidation increases pace
Global steel industry consolidation increases pace Most companies shown announced intention to acquire or formed alliances What will happen in Asia and when? 120 100 5, EU/ Asia . 80 sia Hi Australia, Asia, | 60 Americas | | 40 Ea Americas 204 ot BSO Ww SB B5E @ NN 2 eEB & BBez a #2 Oo & a ® @ § ¢ S
Slide 27: ths
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Slide 28: Questions and Answers
Questions and Answers | Profitable L Dynamic _ Theughtte TL Global Steal _Cye f ong Board AVERY DIFFERENT KIND OF STEEL -__Opet COMPANY Track: R cord soo - _ Flexible Capital Structure . | Producer i Consistently. » 4 oN ey oe Cash and Product | Powe | Divers © Page 28
Slide 29: BlueScope Steel
BLUESCOPE STEEL Merrill Lynch Global Metals & Mining) Conference _ 2007, 0ublin - | Kitby ae Mereaing Director & Chief Executive Officer ath — 10th May 2007
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