Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Goldman Sachs JBWere Australasian Forum 2007
28 slides from Bluescope Steel's conference presentation, Mar 9, 2007
Slide 1: co )PE
co )PE _ es : A ail Lo LER RAO OIE ITE EIS REED. = I pio ee, hy, we — i... = Lee iy MEMO UG VOY I RO a a Oe I VO Ee i I I eas VOM ea 2 Cllr LLFLrrlcrCOC™trtC(“( “=!COCOU!U.U.ULUvU™U™;!U®”!UOC—~O™OOCONNW. Ve Nl ae achs . WME a a LE EAE S. LET oe oe TAM On eT eC rea VAM ae E we S. 2 Re Oe ee OL a ee V
Slide 2: Important notice
- Important not 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
Slide 3: i. ee _ -—
i. ee _ -—
Slide 4: Global flat steel product solutions company — spun out of BHP July 2002
Global flat steel product solutions company — spun out of BHP July 2002 EV at listing approximately A$3.0B - today A$9.0B Unique production footprint and building products franchise in « Australia / New Zealand « China, SE Asia and India # North America Leading regional positions in « Metallic coati
Slide 5: Zero harm is our goal for our team and communities
Zero harm is our goal for our team and communities pesos | NSW ‘Manufacturing — 27.9in 2005 Bd < S = 2 3 S = S & € Lost time injuries per m Medically treated injuries per 1095 1996 1997 1998 1999 2000 200 2002 2003 2004 2005 2008 tH 1905 1998 1907 1958 1903 2000 2001 2002 2003 2004 2005 2008 tH 07 2
Slide 6: Share Buybacks - Public listing to December 2006
: Share Buybacks - Public listing to 31 December 2006 = Purchased and cancelled 116m shares — on market - 90m shares — off market - 26m shares » Average price paid $6.10 per share = Shares on issue » Asat31 December 2006 726.6 million = Dividend reinvestment scheme = Effective from and including fin
Slide 7: Group financial headlines 1H FY2007 vs. 1H FY2006
~ Group financial headlines 1H FY2007 vs. 1H FY2006 Across the board improvements _ Revenue A$4,528M A$3,892M Up 16% (record half year) External despatches 3.7M tonnes 3.5M tonnes Up 6% (record) EBITDA A$794M A$593M Up 34% EBIT AS635M AS449M Up 41% NPAT A$388M A$312M Up 24% EPS ~ Reported §4.7¢ 44.0
Slide 8: Record sales volumes, driven by strong demand for BlueScope's products
Record sales volumes, driven by strong demand for BlueScope’ Ss - products | : 5% Exports I Exports 15% 45% 31% ™% 9% 4% External Despatches Record Haif Key | | Exports - Americas Domestic sales (produced and sold within country) BE Exports - Asia (Iii Na (NSBSS + C&BPNA) New Zealand/Pacific xy Expo
Slide 9: EBIT variance 1H FY2006 to 1H FY2007 by item
EBIT variance 1H FY2006 to 1H FY2007 by item Recovery from _ Smorgon dividend | Western Port fire and Lower redundancy ncreased Asian Prior period rebates. despatches General employee _ Share pian costs Assetsaies 850 750 650 550 EBIT A$ Millions 450 360 250 HY December Export Prices Domestic Volume
Slide 10: Cashflow — a real strength and point of differentiation
~ Cashflow —a real strength and point of differentiation — F tfull year of ons after listing . ace a First Half ASM FY2003 FY2006 FY 2007 ce rere Strong operations Source performance Cashflow from operations 795 563 752 oe improvement . . : Initiatives pay off Working capital movement (31) (214) (55
Slide 11: Balance sheet — working capital reductions and lower gearing
_ Balance sheet — working capital reductions and lower gearing mprove: 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 Credit
Slide 12: Reporting Segment Performance
Slide 13: Reporting business segments
: Reporting business segments. : Australia New Zealand Asia 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. des
Slide 14: All BlueScope business segments profitable and all growing revenue
Al BlueScope business segments profitable and all growing revenue EBIT variance 1H FY2006 to 1H FY2007 by reporting business segment 700 a 650 600 = 550 2 = o 500 << [oad mw 450 ul 400 350 300 HY December Hot Rolled Coated & NZ & Pacific Coated & Hot Roiled Coated & Corporate & Discontinued HY Decem
Slide 15: Unique production footprint in the world's fastest growing regions
Unique production footprint in the world’s fastest growing regions MC 250kt Painting 150kt India ; Metal Coating 250kt Vietnam Painting 150kt MC 425kt Painting 50kt Brisbane Port Kembla / Illawarra Thailand oe Painting 90kt Raw Steel 5.2mt Cold Rolling 350kt Metal Coating 375kt Hot Rolling 2.8mt {in
Slide 16: BlueScope Steel China
BlueScope Steel 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 e 2 Butler PEB manufacturing facilities AQ 60 Lysaght/ CSC sales offices A 24 Butler district offices / sales o
Slide 17: BlueScope Steel North America
A$1,317M* EMPLOYEES: 4,283* 4H FY2007 REVENUE: INVESTED CAPITAL: A$485M* (“INC NORTH STAR BLUESCOPE STEEL 50%) RK ~ 7 | \ \~ BlueScope Steel North America Co] oo = a £ 2 = < ie & es? = 6 2 & c*} enon =z 2s c a = “a 3 S258 2 & 23 O28 6 oe ss= a2S884 5 o 3? 8$s8 Ora 5 a Que+62n s m@cee A 12 Butler Sal
Slide 18: Global steel producers by crude steel production and revenue
1960 Arcelor+ Mittal & Evraz [9 Gerdau Corus + Tata Thyssen Krupp Severstal Midstream 3 ChinaStes! f Maanshan 1B Crude Steel Production (M tonnes} wa Revenue (US$m)
Slide 19: World crude steel production - 1950 to 2006 — China driving growth
World crude steel production - 1950 to 2006 — China driving growth but Slowing Compound Annual Growth Rates 1400 1200 1000 rr) a c < e at 800 5 World Excluding = China: 2.1% Ss ee 400 “World Excluding 200 _ Japan: 1.8% 0 1950 1960 1970 1980 1990 2000 2005 Source: IfS], BSL
Slide 20: Our strategy remains unchanged. Focused on growing more diversified and stable revenue / earnings profile
Our strategy remains unchanged. Focused on growing more — diversified and stable revenue / earnings profile Revenue increased 1H 2006 vs. 1H 2007 411% Asia Asia Midstream ™ Thailand ~ second metal coating line (MCL2) and ramp up in | ™ india - new MCL & PL $27%, progress construction (CY2009) o ~ ra
Slide 21: Major project capital and investment spending profile
x - Major project capital and investment spending profile PROJECTS Projects completed Thailand — Coating expansion 80 80 - - Vietnam — Coating / Painting 136 136 - - China - Coating and Paintin Facility 274 256 13 5 - . ~ Guangzhou Butler /Lysagh' 33 3 2 - - - India - Butler / Lysaght facilities 44
Slide 22: Global group sales revenue mix
Global group sales revenue mix — - mid and conte an sales _ revenue ot powering ahea . _ tH -FY2003-- -FY2007 A$1,350M a ya AS$t,166M i Midstream M ; A$1,511M A$1,238M Downstream A$315M Upstream AS$960M Discontinued/Other Businesses A$262M A$280M A$234M Total Sales Revenue AS2,568M A$3,872M AS#.508M
Slide 23: Butler Buildings North America — Number in PEBs
Bu ler Buildings North America — Number 2 in PEBs ‘Warehouse rin ii
Slide 24: Global steel industry — our long term view has not changed
Global steel industry — our long term view has not changed " China's steel capacity growth tate 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 25: Global steel industry consolidation
~ Global steel industry consolidation | EU? Americas EU / Asia E | | Australia, Asia, Americas YE | Americas 120 100 Most companies shown announced intention to acquire or formed alliances What will happen in Asia and when? increases pace = S [Ey iv D> OD 4 Qa N =] w =< OD c o oO £€£3e:sHt#es 88st 8
Slide 26: mn
mn
Slide 27: Questions and Answers
Questions and Answers Profitable Way Dynamic ‘“ _ Throughthe obal Stee — oo eC | Lo <a Strong Board& Qa : ee _ Management. Branded lean _ Products >> A VERY DIFFERENT Ge )— __ KINDOF STEEL Operating COMPANY — Rees Strong and —rmrr™—~— - Flexible Capital — | LowCost - ae a _ Producer — " Consistently
Slide 28: co )PE
co )PE _ es : A ail Lo LER RAO OIE ITE EIS REED. = I pio ee, hy, we — i... = Lee iy MEMO UG VOY I RO a a Oe I VO Ee i I I eas VOM ea 2 Cllr LLFLrrlcrCOC™trtC(“( “=!COCOU!U.U.ULUvU™U™;!U®”!UOC—~O™OOCONNW. Ve Nl ae achs . WME a a LE EAE S. LET oe oe TAM On eT eC rea VAM ae E we S. 2 Re Oe ee OL a ee V
BlueScope Steel — Goldman Sachs JBWere Australasian Forum 2007 on 6ix