FY2009 Results Presentation Period Ended 30 June

FY2009 Results Presentation Period Ended 30 June 2009 Paul O’Malley, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 17 August 2009

ASX Code: BSL Important notice

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 INFORMATION OR OPINIONS CONTAINED IN THIS PRESENTATION AND, SUBJECT ONLY TO ANY LEGAL OBLIGATION TO DO SO, BLUESCOPE STEEL DOES NOT ACCEPT ANY OBLIGATION TO CORRECT OR UPDATE THEM. THIS PRESENTATION DOES NOT TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR INVESTOR.

TO THE FULLEST EXTENT PERMITTED BY LAW, BLUESCOPE STEEL AND ITS AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, ACCEPT NO RESPONSIBILITY FOR ANY INFORMATION PROVIDED IN THIS PRESENTATION, INCLUDING ANY FORWARD LOOKING INFORMATION, AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ON ANYTHING CONTAINED IN OR OMITTED FROM IT OR OTHERWISE ARISING IN CONNECTION WITH THIS.

Page 2 IntroductionIntroduction andand HeadlinesHeadlines

Page 3 Safety – Our target remains Zero Harm

Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate 18 70

16.0 NSW Manufacturing 16 60.0 2005 – 27.9 60 14.0 2006 – 24.4 14 52.2 2007 – 23.8 50 47.1 12

10 40 Reported performance for 8.0 World Steel member companies 8 29.1 (employees & contractors) 30

6 22.4 21.9 4.8 20 4.1 17.0 4 3.5 3.5

Lost time injuries per million man-hours worked man-hours million per injuries time Lost 12.4 2.8 Medically treated injuries per million man-hours worked man-hours million per injuries treated Medically 9.4 9.3 1.8 10 8.0 8.2 2 1.5 6.5 6.7 6.5 1.2 5.6 0.9 0.8 0.9 0.5 0.8 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 FY FISCAL YEARS FISCAL YEARS

Includes Contractors from 1996 Includes Contractors from 2004 Includes Butler acquisition from May 2004 Includes Butler from May 2004 Performance if IMSA & Smorgon Distribution acquisitions incl. for FY2008 Performance if IMSA & Smorgon Distribution acquisitions incl. for FY2008

Page 4 Group financial headlines FY2009 vs. FY2008 …underlying NPAT down 93%

TWELVE MONTHS ENDED 30 JUNE VARIANCE 2009 2008 % Revenue A$10,329M A$10,495M Down 2% External despatches 6.0M tonnes 8.1M tonnes Down 26% EBITDA − Reported A$380M A$1,420M - − Underlying A$536M A$1,630M Down 67% EBIT− Reported A$15M A$1,063M - − Underlying A$171M A$1,273M Down 87% NPAT − Reported A$(66)M A$596M - − Underlying A$56M A$816M Down 93% EPS− Reported (7.1)¢ 66.2¢(1) - − Underlying 6.1¢ 90.6¢ Down 93% After Tax Return on Invested Capital 0.1% /1.9%* 12.0%/15.9%* - Return on Equity (1.4)%/1.2%* 15.7% /21.5%* - Net Operating Cashflow − From operating activities A$784M A$1,648M Down 52% − After capex / investments A$56M A$138M Down 59% Full Year ordinary dividend (fully franked) 5cps 49cps Down 90% and no final dividend Gearing (net debt) 11.8% 30.4% Also down from 35.9% at 31/12/08

(1) EPS restated for bonus element of the entitlement offer. *Underlying Returns Page 5 Underlying EBIT variance FY2008 to FY2009 by major item …largely driven by weaker steel demand

Raw Materials: Net spread improvement $56m(1) Coal (657) Iron ore (403) 3000 External Steel Feed (373) $1,352m Scrap (34) NZ Raw Materials (27)

2500 Opening Stock Adj 151 s

n Coating Metals 126

o i

l Other 7

l i

M 2000 Conversion & Other costs: $ (3)

A Volume (471)

T Other: I Escalation (113) B 1500 NRV adjs. (166)

E $1,273m Other (29)

g One-off / Discretionary (3) Asset Sales (4) n i ($1,210m) Depreciation 10

y Improvement Initiatives 295 l r ($86m) Other (3)

e 1000

n U $155m ($665m) 500 Volume(2) (714) Mix 49 $171m ($321m) ($164m) ($163m) 0 June 08 FY Export Prices Domestic Raw Material Volume/Mix Conversion & Exchange North Star Other June 09 FY Pr ic es Cos ts Oth Costs Rates

(1) Includes $243m favourable profit in stock adjustments - relevant when reconciling to the sum of divisional spread variances. (2) Volume impact based on FY 2008 margins. (3) Volume reflects the effect of higher unit costs as a result of lower production/sales volumes.

Page 6 Underlying EBIT variance 1H FY 2009 to 2H FY 2009 …which is a tale of two halves

y price and volume collapse, partly mitigated by raw material costs (feed, and coal price averaging) 1000 Net spread reduction ($819) 800 Raw Materials: Coal 115 $753m Ext Stl Fd 103 600 Alloys 58 Coating Metals 29 Scrap 20 400 Mainly reflects the unit cost impact of Iron ore 7 lower volumes ($387M unfavourable), NZS (mainly coal) 6 partly offset by cost reductions and 200 Op Stock Adj (121) lower spend ($331M)

0 $217m Other: NRV adjs. 38 ($784m) -200 Other 4

-400 ($252m) ($317m) $42m Volume(1) (373) ($56m) -600 Mix 56 ($99m) ($582m) Lower volumes across all segments ($86m) -800 Dec 08 HY Export Prices Domestic Prices Raw Material Volume/Mix Conversion & Oth Exchange Rates North Star Other June 09 HY Costs Costs

(1) Volume impact based on 1H 2009 margins

Page 7 Underlying EBIT variance FY 2008 to FY 2009 by business segment …the1400 lower demand in FY 2009 was reflected in BlueScope’s global operations producing at lower utilisation rates 1200

1000

$1,273m

800

s n

o 600

A 400

B E 200 $2m ($859m) ($77m) $182m $171m ($97m) 0 ($163m) ($90m) -200 June 08 FY Coated & Industrial Aust Distribution NZ & Pacific Coated & Building Hot Rolled Products Coated & Building Corporate & Group June 09 FY Products Australia & Solutions Steel Products Products Asia Nth America Products Nth EBIT Movements America From FY 2008 $1,000M $86M $85M $76M $105M $99M $(178)M To FY 2009 $141M $9M $87M $(21)M $(58)M $9M $4M Core Reasons: y reduced spread y weaker y spread y reduced spread y reduced spread y lower volumes y large favourable (lower export volumes improvement y reduced − lower prices, y margin profit in stock prices, higher raw y higher freight y FX benefit volumes higher scrap compression elimination material costs) cost y partly offset by y partly offset by: & pig iron y inventory NRV movement y inventory NRV y inventory NRV − lower volumes − FX benefit costs provisions y partly offset by: provisions provisions − lower iron − Mix benefit y lower volumes y partly offset by: −unfavourable FX y lower export y partly offset by sands & y inventory NRV − slight FX −higher costs volumes spread Vanadium sales provision benefit y partly offset by improvement − inventory NRV y higher favourable FX provisions electricity and ealloy cost

Page 8 Our markets - external sales by region …and lower demand was also reflected across all our markets

FY2008 FY2009 Exports 8% Exports 29% 18% 25% (2,374kt) 8% (1,492kt) 4% 9% 21%

13% 12%

12% 11% 38% 4% 38% 4% (3,101kt) (2,290kt) 8,133kt 26% decline 5,986kt

Key Exports - Americas Domestic sales (produced and sold within country) Exports - Asia NA (HRPNA + C&BPNA) New Zealand/Pacific Exports – Europe/Med/Middle East/India Australia Asia

Note: Percentages have been rounded. Page 9 Total Australian external domestic despatches by market segment …and across all of our segments in Australia SALES TONNES (1) (1) FY2008 Construction FY2009 3,200 61% (1,892kt) Principal variances: y Slowing activity levels and high inventory 2,800 Non-dwelling 26% through the channel combined to result in lower overall sales volumes across all 62% (1,420kt) 2,400 segments in FY 2009 vs. FY 2008.

Non-dwelling 26% y The Non-Dwelling and Engineering 2,000 Dwelling 22% Construction segments were significantly impacted by project deferrals and 1,600 cancellations. Engineering 12% Dwelling 24% 1,200 y However improved market share in Q4 Engineering 12% Despatches ‘000 tonnes underpinned a modest recovery off a low base. Manufacturing 19% 800 Manufacturing 19% y And evidence of continued improvement in Agriculture & Mining 11% domestic demand through Q1 FY 2010. 400 Agriculture & Mining 10% Auto & Transport 10% Auto & Transport 9%

Gross Despatches 3,101kt (26%) 2,290kt Notes: Less (2) (2) (1) Percentages have been rounded and worked off Gross (437kt) (332kt) Despatches. Normalised (2) Normalised despatches exclude long products sourced Despatches 2,664kt (27%) 1,958kt from OneSteel. Page 10 Our markets …however both our domestic and export markets and sales are recovering

y Global de-stocking appears to have ceased for most steel products y Received a large number of enquiries across our product range y Improved sales volumes to long term relationship customers y BlueScope’s competitive position in the export markets remain compelling: ¾ Tier 1 quality product ¾ Strong relationships with “repeat business” customers ¾ Proximity to stronger Asian market ¾ Locked in freight contracts at competitive prices ¾ Network of BSL international sales offices and representatives across the globe ¾ Relatively low production costs y And ¾ Steel prices appear to have bottomed ¾ China Steel supply / demand largely in balance Their stimulus package is working Australia’s GDP performance benefits from being their “resources” engine room

Page 11 Significant actions taken through FY 2009 …we strengthened the Balance Sheet

y Equity ¾ December placement and February SPP raised $400M net ¾ Entitlement offer raised net A$1,360M y Debt ¾ Termed-out loan note facility with new A$1,275M multi currency facility (replacing old Loan Note Facility) ¾ Applied equity proceeds to repay debt y Benefits ¾ No material refinancing obligations due until July 2011 ¾ 30 June 2009 gearing of 11.8% (30 June 2008: 31.8%) ¾ Strong liquidity: 31 July 2009 total undrawn facilities and cash of $A$1,757M

Page 12 Significant actions taken through FY 2009 …aggressively monetised inventory

+70% vs Jun-2008

+3% Carrying vs Jun-2008 value of $2,815M inventory at period end $1,660M $1,711M

Jun-2008 Dec-2008 Jun-2009 Volume change from ~ +25% -12% June 2008 vs Jun-2008 vs Jun-2008

Page 13 Significant actions taken through FY 2009 …also achieved significant fixed cost and overhead reduction of $295 million, in addition to lower volume-linked conversion costs y At 1H FY 2009 we indicated we were pursuing $150m of cost reductions. Achieved $295m in the nine months to June 2009 ¾ $182m of ‘new’ savings against 2008 cost base, in addition to $113m of savings to defray 2008 cost escalation ¾ $132m of the $295m are permanent savings y Savings delivered from the following major initiatives ¾ No STI awards; general labour cost reductions, inc some redundancies ¾ Reduction of non-essential repairs and maintenance spend ¾ Fixed conversion / opex reduced through plant closures, outages and rescheduling ¾ Significant sales & administration reductions: eg reduced head count, consultants, IT spend and travel y Successfully lowered the break-even production level across a number of plants ¾ China coated: reduced by 40% ¾ Vietnam coated: reduced by 35-40% ¾ Buildings North America: Butler reduced by 18%, Varco Pruden by 35%

Page 14 Outlook …encouraged by improving market conditions in early 1H FY 2010

OUTLOOK y Encouraged by improving global steel demand and pricing in early FY 2010 ¾ However, demand improvement off a low base ¾ BSL will not receive full pricing benefit in 1Q FY 2010 y Steelmaking raw material prices lower than 2009 y Global steelmaking capacity progressively increasing but at this stage largely matching increased demand ¾ BlueScope to operate its two blast furnaces at Port Kembla (initially at 75% annual capacity) effectively from 2Q FY 2009 y Negative earnings impact of a strong A$ (vs. US$) y Expect to deliver small negative underlying NPAT in 1H FY 2010 y Will update market in November at AGM

BLUESCOPE’S ACTIONS OVER 1H FY 2010: y Increase sales on a positive / growing margin y Further cost reductions y Limit capital spending BLUESCOPE IS VERY LEVERAGED TO THE UPSIDE Page 15 Strategy …our strategy has not changed but moving forward with an element of caution

y Reinvigorate our position in the Australian/NZ markets, through ongoing focus on strengthening our customer relationships, product and service innovation and driving operational efficiency. y Continue to improve our position in select geographies in Asia and North America where we can develop a sustainable competitive advantage through a focus on profitable differentiated products and solutions for the Building & Construction sector ¾ As in Australia, we will strengthen our market offers, improve our operations and supply chain, build our downstream businesses, support growth in Indonesia and India, in particular, and focus on improving the capability of our organisation y Evaluate further growth opportunities with priority on: ¾ Brownfield capacity expansions and M&A rather than greenfield ¾ Expand presence in North America building products and solution markets ¾ Expanding our downstream capability in Australia and Asia ¾ Target growth opportunities − across our total value chain − within our current geographic footprint ¾ New products and solutions with a focus on sustainability. y Capital management NOW TO OUR APPROACH ON ENVIRONMENTAL MATTERS Page 16 Carbon Pollution Reduction Scheme (CPRS)

y We support the need to reduce global CO2 emissions and we will work to reduce our CO2 emissions. y But we have grave concerns about the current design of the proposed CPRS and the negative impact it will have on the Australian steel industry, without achieving an environmental benefit. y Without comparable global action why would anyone impose a compounding tax that discriminates against the world competitive Australian steel industry, needlessly putting Australian jobs and investment at risk? y We strongly believe that the cumulative net cost impact of the CPRS on the Australian steel industry will be highly significant and material, and that it will severely damage our competitiveness, putting domestic investment, Australian jobs and the Australian steel industry at high risk. y Steel will always be consumed in Australia – if not made in Australia, it will be imported for a worse global environmental outcome.

Page 17 Environmentally Responsible ….a proven track record - with 30 years of environmental footprint improvements

Investment Track Record: Leader in Water Conservation: y BlueScope has invested $500 million on Port Kembla Steelworks: environmental related improvements y Over 14 billion litres of water recycled globally. since Oct 2006 - world class water y 150 separate pollution reduction projects efficiency for an integrated steelworks. - improving air, water and waste Western Port: management at Port Kembla Steelworks y A water recycling project will cut fresh (PKSW) alone. water use by 65 per cent and reduce y PKSW recycles around 1 million tonnes wastewater discharge by 75 per cent - of scrap steel each year*. due for completion July 2011. * based on typical annual production levels and includes a combination of internally generated and post-consumer scrap.

y We support the global objective to reduce CO2 emissions

y We will continue work to reduce our CO2 emissions

Page 18 CPRS…. does not meet the Government’s stated policy objectives: to address the competitive challenges facing emission-intensive trade-exposed (EITE) industries in Australia.

y BlueScope Steel’s Australian operations are world competitive – exporting 50 per cent of steel production. y Australia manufactures only 0.6 per cent of global steel production (7.6mt v 1,380mt) y Eight of the world’s top 10 steel-producing countries produce 70 per cent of global steel production – but no mandatory carbon constraints. y Blast furnace technology (basic oxygen steelmaking) is the predominant process for manufacturing virgin steel around the world. y Around 80 per cent of BlueScope’s Australian GHG emissions come from using coal for blast furnaces. These emissions cannot be abated given current and foreseeable alternative technology available anywhere today. y Steelmaking has high fixed costs requiring intensive capital investment – we need the right scheme to promote investment certainty. Current CPRS unfairly discriminates against the Australian steel industry relative to international competitors

Page 19 Australian steel industry needlessly at risk – our competitors are unlikely to face a comparable cost

Country Annual Propensity to Mandatory carbon cost from Blast Furnace production - Mt1 increase steel 2011? efficiency (% of world) exports to Aust? approx. avg. coal use (kg/t hot metal2) Australia 7.6 (0.6%) N/A Yes. CPRS commences 2011 500 kg/t China 500.5 (38%) High No 580 kg/t India 55.2 (4%) High No 710 kg/t South Korea 53.6 (4%) High No. ETS proposed but no date set. 490 kg/t Taiwan 19.9 (1.5%) High No. ETS proposed but no date set. 495 kg/t Japan 118.7 (9%) Medium No. Voluntary ETS - no mandatory cap 500 kg/t Brazil 33.7 (2.6%) Low-Medium No 500 kg/t (South America)

Russia 68.5 (5%) Low No 570 kg/t

United States 91.4 (7%) Low No. Cap and trade proposed from 2014 510 kg/t (includes Canada and Mexico) Ukraine 37.1 (2.8%) Low No 615 kg/t Germany 45.8 (3.5%) Low EU ETS – Free Permits 490 kg/t Italy 30.6 (2.3%) Low EU ETS – Free Permits 495 kg/t (EU15) Rest of world 263.9 (20%) Variable Countries subject to EU ETS comprise 550 kg/t (world average) approx. 15% of global production Canada ETS planned 2012 NZ ETS – subject to parliamentary review

1. Source: World steel association, ‘World Steel in Figures’, 2008 data 2. Source: International Energy Agency, ‘Tracking Industrial Energy Efficiency and CO2 Emissions’, 2007 Page 20 CPRS – Our Objection ….without comparable global action, a compounding tax

y CPRS is not a one-off, one-year decision. y Without comparable global action, the cumulative cost of the CPRS is a compounding tax over many years - it will impair our trade competitiveness: ¾ At a $10 permit price (Year 1) and a $25 permit price (Year 2, rising by CPI thereafter) – the net cost to BlueScope from 2012-2020 could be as much as $500 million*. ¾ If suppliers succeed in passing on all carbon costs, the cumulative net cost could be as much as $1.4 billion over the period*. y These sums are dollars paid in tax – not spent on technology reducing BlueScope’s emissions (eg. Steelworks Co-generation Plant). y Steel will continue to be consumed in Australia – if not made in Australia it will be imported for a worse global environmental outcome.

*Assumptions: Emissions constant and based on FY2008 levels (Scope 3 emissions estimated). Figures shown are maximum estimated costs and assume no abatement of emissions and no ability to offset costs. Scope 3 cost estimate assumes suppliers are successful in passing on all Scope 3 costs to BlueScope. Cost estimates are expressed as nominal dollars. Permit price of AUD$10 in FY2012. Permit price of AUD$25 in FY2013, rising by 2.85% CPI p.a. thereafter. Permit allocation commences at 94.5% in FY2012 and decays 1.3% p.a. Global recession buffer removed after FY2016. EITE activity definition excludes hot rolling and downstream processes. Page 21 CPRS….unfair on regional Australia – threatening jobs and undermining investment

y Our total impact on the Illawarra regional economy* : ¾ Employment: over 12,000 full time equivalent jobs (+ more than 1000 employees and contractors at Western Port in Victoria) ¾ Gross Regional Product: over $2 billion ¾ Household Income: over $900 million y At PKSW, over $500 million has recently been invested on the reline of the No. 5 Blast Furnace and the Sinter Plant upgrade: ¾ Employing an additional 3,500 people on-site ¾ Over 100 Illawarra companies supplied goods and services ¾ A $430 million one-off impact to the Illawarra economy*

* Source: Illawarra Regional Information Service Research: Economic Impact of BlueScope Steel on the Illawarra Region - 2008 Page 22 CPRS ….can be designed to deliver a ‘fair go’ for the Australian steel industry and regional Australia

y The Government stated: “There is no point in imposing a carbon price domestically which results in emissions and production transferring internationally for no environmental gain.” y To meet the Government’s stated CPRS policy objectives, three simple amendments to the CPRS are required: 1. Certainty that permit allocations are maintained, as long as competitors do not face the same carbon costs. 2. Inclusion of hot rolled products (HRP) in the activities to receive permit allocation: ¾ Hot rolled coil and plate are major internationally traded products. ¾ Illogical to exclude HRP – would damage Port Kembla and Western Port competitiveness. 3. We need assurance that Scope 3 coal costs will not be passed on to the steel industry.

Page 23 BlueScopeBlueScope SteelSteel FinancialFinancial ResultsResults

Page 24 Earnings performance …second half of FY 2009 heavily impacted by materially weaker spreads and lower despatches

A$ MillionsFY2005 FY2006 FY2007 FY2008(3) FY2009 2009-1H 2009-2H

Revenue (1) 7,964 8,031 8,913 10,495 10,329 6,156 4,173

EBITDA (2) 1,655 850 1,423 1,420 380 857 (477) EBIT (2) – Reported1,358 556 1,099 1,063 15 665 (650)

– Underlying (4) 1,559 840 1,057 1,273 171 753 (582)

NPAT – Reported982 338 686 596 (66) 407 (473)

– Underlying (4) 1,129 555 643 816 56 479 (423)

EPS(5)(cps) – Reported134.0 47.9 95.3 80.1 (7.1) 52.7 (43.4)

– Underlying (4) 154.0 80.0 89.3 109.6 6.1 62.0 (38.8)

(1) Does not include North Star BlueScope Steel revenue, which was A$669M (2009) vs. A$721M (2008). (2) Includes 50% share of North Star BlueScope Steel net profit after tax. (3) Includes eleven months of BlueScope Distribution financial results and five months IMSA steel businesses financial results. (4) Underlying numbers represent Reported numbers adjusted for unusual or non-recurring events to reflect underlying financial performance from ongoing operations. (5) EPS for periods prior to the May / June 2009 entitlement offer have not been restated for the bonus element of the entitlement offer. Page 25 Underlying EBIT variance FY 2008 to FY 2009 by business segment …the1400 lower demand in FY 2009 was reflected in BlueScope’s global operations producing at lower utilisation rates 1200

1000

$1,273m

800

s n

o 600

A 400

Page 26 Reconciliation from Reported to Underlying EBIT for FY 2009

A$M250

China impairments: Metal Coating Line 25 Panels 11 200 NZ Growth Projects $4m Feasibility write-offs $10m $36m ($8m) ($3m) $171m 150 Restructure & Redundancy $110m ($15m) $22m

$75m

100 Australia 52 Nth America 9 Asia 14

50 $15m $20m Australia 17 $15m Nth America 3

0 Reported Packaging Cold IM SA P lant Other Re- Project Impairments Western Port IM SA Defined Benefit Other Discontinued Underlying Result M ill Closure Rationalisation structures Feasibility China Fire Integration Curtailment Nth businesses Result Costs Costs America

Page 27 Aggressive cost reduction …$295m of savings in nine months to June in fixed conversion and discretionary items

y Exceeded our $150m target ¾ $113m of savings to neutralise impact of escalation ¾ A further $182m of savings achieved off 2008 cost base y Volume related conversion cost savings achieved as well

Permanent vs Temporary Split Cost Category Split of the $295m

Examples: Manufacturing production reduced head count, scheduled to minimise cash costs, reduced reduction in leave, no Direct short term incentive contractors, procurement Labour payments for FY 2009, contract negotiation reduction in overtime 19% Conversion/ Opex 30% Permanent Temporary $132m Repairs & $163m Maintenance 23%

Overhead 28%

Fixed conversion and Examples: overhead cost base Example: reduced travel, reduced matched with current reduction of consultants, lowered IT volume levels – expected non-essential spend &site closures to return with volumes maintenance

Page 28 Cost saving initiatives …and spend has been reduced across our divisions

Divisional Split of the $295m Divisional Split of $132m Permanent Savings

NZS 2% Corporate 5% Corporate, 4%

Coated Coated & Building & Building Products Products Asia Asia 8% 11% Australian Coated & Distribution & Building Australian Distribution & Solutions 16% Products Coated & Building Solutions 12% Australia 41% Products Australia 52%

North America North America 18% 31%

Page 29 Cashflow …strong working capital inflow in 2H FY 2009 more than offset negative cash from operations

Impact of economic A$ millions FY2007 FY2008FY2009 2009-1H 2009-2H slowdown Cash from operations 1,364 1,579534 926 (392) Working capital movement (21) 69250 (863) 1,113 Monetisation of inventory in 2H, and Net operating cash flow 1,343 1,648784 63 721 lower sales vols/prices Net investing cash flows reducing receivables

- Capital & investment (493) (1,979)(762) (298) (464) Higher capex in 2H expenditure principally due to - Smorgon shareholding(1) (319) 447 - - - reline and sinter plant. -Other 271 2234 11 23 Net cash flow before 802 13856 (224) 280 Debt repayment from financing & tax equity issuance and (2) release of working Net financing cash flow (506) 195(1,098) 301 (1,399) capital Payment of income tax (229) (208)(205) (242) 37 Share buy-back - -- - - Proceeds of equity raisings Share issues 221 2291,836 355 (2) 1,481 (3) Dividends - Ordinary (321) (357)(253) (208) (45) - Special - -- - - Material cash balance (4) arising from higher than Other 2-- -- expected proceeds Net increase in cash held (31) (3)336 (18) 354 from equity raising (1) Purchased 19.9% shareholding in Smorgon Steel in August 2006, disposal in August 2007. (2) Includes shares issued under the shareholder dividend reinvestment plan ($58m), net cash from institutional investor investor placement ($291M) and general employee share plan ($6m). (3) Includes shares issued under the shareholder dividend reinvestment plan ($12m) and net cash from institutional investor investor placement ($1,469M). (4) Reflects capital injection by minority interests in subsidiaries. (5) All periods normalised to reflect sale of receivables program cash flow movements as debt. Page 30 BalanceBalance sheetsheet – significant improvements in working capital and …significantgearing improvements in working capital and[Duncan gearing to verify comments]

As As at at [Tim – removeMaterial cash decimal balance 30 June 2008 31 Dec 20082008 3030 JuneJune 2009 2009 arising from equity raisings A$A$ MillionsMillions place/round]and favourable exchange rate movements

Assets Material cash balance arising Cash 44.1 44 35.1 35 369.2 369 fromLower equity raisingssales volumes and favourable andexchange prices combined rates movements with a Receivables 1,537.2 1,537 1,323.2 1,323 1,013.1 1,013 stronger AUD since Dec 08

Inventory 1,659.9 1,660 2,815.2 2,815 1,711.4 1,702 Next few slides

Other Assets 1,417.8 1,418 1,768.1 1,768 1,484.4 1,490 Lower value of tangibles Net Fixed Assets 3,807.3 3,807 4,139.9 4,140 4,290.8 4,290 and equity accounted investments on account of stronger AUD since Dec 08. Total Assets 8,466.3 8,466 10,081.5 10,081 8,868.9 8,864 Capex slightly greater in 2H09.

Liabilities Lower raw material purchases Liabilities due to economic slowdown, and Creditors 1,289.5 1,290 1,059.3 1,059 953.6 960 stronger AUD since Dec 08. Interest BearingBearing LiabilitiesLiabilities 1,675.8 1,766 2,675.3 2,675 1,124.9 1,125 Next few slides Provisions && otherother LiabilitiesLiabilities 1,559.1 1,468 1,623.8 1,624 1,116.9 1,116 Predominantly lower Total Liabilities 4,524.4 4,524 5,358.4 5,358 3,195.4 3,201 defined benefits, super employee benefits and tax provisions. Net Assets 3,941.9 3,942 4,723.1 4,723 5,673.5 5,663

Next few slides Net Net Debt Debt / (Net / (Net Debt Debt + Equity)+ Equity) 30.4%30.4% 35.9%35.9% 11.8%11.8%

PagePage 3147 Balance Sheet …delivered on monetising inventory

RMS 994 A$M RMS 546 WIP 571 WIP (30) FGS 1,057 RMS (260) FGS 110 Other 193 WIP (84) 4000 Other 29 FGS (509) Other (9) RMS 519 RMS 617 3500 WIP 475 WIP 167 $319m FGS 517 FGS 712 $2,815m Other 191 3000 Other 164 $655m ($204m) 2500 ($207m) $385m 2000 $1,660m $38m $1,702m Nth Am 184 ($862m) 1500 Asia 130 Aust (155) ($82m) NZ 5 Nth Am (23) Asia (25) 1000 NZ (1) Nth Am (49) Aust 31 500 Asia (28) Nth Am (2) NZ (5) Asia 20 NZ (11) 0 June 2008 Price Volume FX Impact NRV December Price Volume FX Impact NRV June 2009 Adjustments 2008 Adjustments

Note: “RMS” – Raw Materials (including steel feed to BSL businesses) “WIP” – Work in Progress “FGS” – Finished Goods

y Total $166M full year NRV adjustments as follows: C&IPA ($83M), AD&S ($41M), NZS($12M), C&BP ($5M) and C&BP North America ($25M). Post tax total $130M. Page 32 Balance Sheet …net equity increased by $1,720m largely on account of equity raisings

y In addition to equity raisings, exchange rate fluctuation ($182m favourable) and dividend payments ($252m outflow) were the other large movements. y Post tax impact of defined benefit super and pension plan adjustments of $28m for the full year was significantly improved from $128m at the half year.

A$M

Mainly exchange movements 7000 $1,881m $5,663m 6000 $9m ($252m) ($28m) ($6m) 5000 $3,942m $182m 4000 ($66m) Defined Benefit super fund EBIT A$M 3000 actuarial adjustments: Capital Raising 1,760 Pre-tax (104) Dividend Reinvest Plan 70 Tax 76 2000 Employee Shares 29 Tax Deductions 22 1000

0 June 2008 Profits Exchange Increased Minority Dividends Paid DB Super & Other June 2009 Fluctuation Share Capital Interes ts Pension Plan Res erv e Shortfalls Account

Page 33 Balance Sheet …positioned with conservative gearing

y Gearing at 11.8% (ND/ND+E), below our normal 30-35% target band y FX was unfavourable in 1H 2009, but helped in 2H 2009 y Net debt at 30 June of $756m, comprised of $1,125m of drawn debt less $369m cash y 31 July 2009 total undrawn facilities and cash of A$1,757M A$M 3500 30.4% 35.9% 11.8%

3000 ND/ND+E $526m $2,640m

2500 $392m

2000 $1,723m FX: Debt (205) 1500 Cash 8

FX: 1000 Debt 543 $756m Cash (17) ($1,687m) ($197m) 500

0 Net Debt June Net Cas h FX Translation Net Debt Dec Net Cas h FX Translation Net Debt June 2008 Mov ement in 2008 Mov ement in 2009 period period Page 34 Debt Facilities and Maturity Profile …no material refinancing obligation due until July 2011

A$M 1,200 1,000 800

600 1,075 400 200 635 200 121 107 170 0 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 >1H15

Other USPP Sy ndicated Loan Note Facility

Note: - Facilities chart is at 31 July 2009; assumes AUD at US$0.8249 - Less material faciilities not illustrated (including an US$85m trade payables facility and A$33m of US facilities); see supporting material for facilities table y The new A$1,275m loan note facility announced on 5 May 2009 was successfully syndicated y The facility has an effective date of 10 July 2009 and comprises two tranches, A$200m maturing in two years and A$1,075m maturing in three years from the effective date y Strong demand saw fifteen Australian and international banks participate in the facility

Page 35 In view of material changes to domestic & export demand in FY 2009 it would be misleading to include the 09 sensitivities. Included FY 2008 as a reference point (full production and typical domestic/export sales split)

Estimated impact on EBIT (A$mil) Assumption FY 2008

+/– US$25 / tonne movement in BlueScope’s average realised export HRC price(1) 85 +/– 1¢ movement in Australian dollar / US dollar exchange rate(2) 14 +/– US$10 / tonne movement in NSBSL HRC price to scrap spread 11 +/– 2% movement in slab production in Australia, New Zealand & USA 28 +/– US$10 / tonne movement in coal costs 45 +/– US$10 / tonne movement in iron ore costs 90

(1) The change in export HRC price assumes proportional effect on export slab, and flow on to domestic pipe and tube market and to other export products. This does not include the potential impact on Australian domestic coated product prices, as the flow on effect in the short term is less certain. (2) The movement in the Australian dollar/US dollar exchange rate includes the restatement of US dollar denominated receivables and payables and the impact of translating the earnings of offshore operations to A$.

Page 36 Summary

y 1H FY 2009 – good first quarter y 2H FY 2009 – material market contraction y 1H FY 2010 ¾ increasing sales both in domestic and export ¾ improving supply chain ¾ further material cost reductions ¾ expect small negative reported NPAT y Ensure future of Australian steel manufacturing y Build off our successes ¾ increase Australian market share / penetration ¾ No. 1 global Pre-engineered Building manufacturer y Continue to work safely

Page 37 QuestionsQuestions && AnswersAnswers

Page 38 FY2009 Results Presentation Period Ended 30 June 2009 Paul O’Malley, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 17 August 2009

ASX Code: BSL SupportingSupporting InformationInformation

Page 40 ReportingReporting SegmentsSegments AdditionalAdditional InformationInformation

Page 41 Reporting Segments Corporate / Group Australia New Zealand Asia North America

Coated & Australian New Zealand Coated & Hot Rolled Coated & Industrial Distribution & Pacific Building Products Building Products & Solutions Islands Products North America Products Australia Products Asia North America

y Pre-eminent global designer / y Only fully integrated flat y Pre-eminent seller of y 50:50 joint venture with supplier Pre-engineered y Leading supplier of flat steel y Leading supplier of flat steel maker in New branded steel in Asia Cargill Inc. buildings products in Australia steel solutions in Zealand y Lower cost “backward y Again voted no. 1 flat y No 2 position in North y Global scale steel works Australia y Leading domestic integration” growth rolled steel supplier in strategy North America (Jacobson America and no. 1 in China y Largest supplier of metal market share of flat Survey) y IMSA assets (from Feb 2008) coated and painted steel in ¾BlueScope Steel products Australia Distribution ¾Indonesian, Malaysian, Thailand and Vietnamese ¾ ¾Lysaght Rollforming ¾Glenbrook, NZ ¾Delta, Ohio Buildings North America operations − Butler ¾Port Kembla Steelworks, ¾BlueScope Water ¾Pacific Islands ¾China, including Butler − NSW ¾Services Centres Varco Pruden ¾Lysaght Asia − HCI ¾Springhill, NSW ¾BlueScope Buildings ¾India – Tata BlueScope JV ¾Western Port, VIC ¾IMSA ¾Western Sydney Colorbond − Steelscape facility, NSW − MetlSpan ¾North America, Europe & − ASC Profiles Asia Export trading offices Page 42 AustraliaAustralia CoatedCoated && IndustrialIndustrial ProductsProducts DistributionDistribution && SolutionsSolutions

Page 43 Coated & Industrial Products Australia

Markets y Domestic Underlying EBIT ¾ strong Q1, followed by material fall in demand in Q’s 2&3 and modest improvement in Q4 off a very low base. 1200 1000 y Exports ¾ similar demand pattern to the domestic market albeit the 900 766 downturn in margins (in particular) was more pronounced. 602 553

600 s

Underlying performance - FY2009 vs FY 2008 n o

i 398

l l y EBIT reduction 86% largely due to i

M 300 141

¾ reduced spread: $

− principally lower export steel prices; and T I

B 0

− higher US$ coal, iron ore and scrap costs E ¾ inventory net realisable value provision ¾ lower sales volumes -300 ¾ higher unit costs of production on lower volumes ¾ partly offset by -600 -412 − favourable A$ vs. US$ FY07 FY08-1H FY08-2H FY08 1H 09 2H 09 FY 09 y Slab make was 3.52mt vs. 5.29mt in FY 2008 due to ¾ reduced demand ¾ BF No. 5 reline in 2H; plus FY 07 1H 08 2H 08 FY 08 1H 09 2H 09 FY 09 ¾ BF No. 6 operating at annual capacity rate 73% in 2H Underlying 766 398 602 1,000 553 (412) 141 y Completed core BF No. 5 activities and Sinter Plant upgrade in June 2009. Reported 799 384 602 986 644 (438) 206 y Western Port pickle tanks were reinstated and operations resumed 39 days after the fire.

Page 44 Coated & Industrial Products Australia – underlying EBIT variance analysis (FY2009 vs FY 2008)

Raw materials: Net Spread Reduction ($291m) Coal (657) Iron ore (403) 1800 Scrap (34) $707m Op Stock Adj 151 1600 Coating Metals 70 Alloys 4 1400

1200 $1,000m 1000 Conversion & other costs: Volume (332) 800 ($129m) Escalation (32)

EBIT A$M Cost Reductions 166 ($869m) Other 7 600 Other: NRV Adjs (83) 400 $35m $128m $141m 200 ($458m) $155m ($83m) ($191m) 0 June 08 FY Export Prices Domestic Raw Material Volume Mix Conversion & Exchange Other June 09 FY Pr ic es Costs Oth Costs Rates

Page 45 BlueScope Steel – Key drivers of Coated & Industrial Products Australia FY2009 result

Significant increase from around US$700/t at start of half to above US$1,000/t at end

Held above or around US$1,000/t 1H 2008 2H 2008 1H 2009 2H 2009 through August, then declined to around US$500/t by December East Asia HRC price1, US$/t 612 901 752 452 Moved down to circa US$400/t in May Iron ore fines2, US$/dmt 50.66 91.14 and recovered back to US$500/t by end of May. July SBB price US$555/t. Coking coal2, US$/wmt 98 300 Large increases in FY2009 compounded margin pressure. Average AUD 0.868 0.925 0.781 0.712 2010 iron ore benchmark price US$61/dmt; coking coal benchmark End of period AUD 0.876 0.962 0.691 0.810 price US$129/wmt

PKSW slab production, kt 2,632 2,653 2,400 1,117 Material demand contraction lead to inventory build C&IPA3 total despatches4, kt 2,577 2,627 2,051 1,430 Production adjusted, together with BF No. 5 reline, to reduce inventory C&IPA3 ext despatches5, kt 2,136 1,856 1,416 1,201

Note: (1) Average of monthly Steel Business Briefing East Asia HRC US$/t CFR price (2) Benchmark prices (3) Coated & Industrial Products Australia division (4) Includes despatches to parties external to BSL, and despatches to other BSL divisions (eg C&BP Asia, C&BP North America and Aust. Distribution & Solutions) (5) Despatches to parties external to BSL Page 46 Western Port – Pickle Line Fire

y Fire occurred in pickle-line at Western Port plant, Hastings Victoria on 13 May 2009 ¾ Pickle process precedes cold rolling ¾ Fire started in pickle tanks ¾ Damage contained largely to pickle tanks and non-structural roof damage; no other process impacted other than pickling y Pickle line operation resumed on 21 June 2009, 39 days after the fire ¾ able to use decommissioned pickle tanks from BlueScope Steel’s Packaging Products facility at PKSW ¾ financial impact less than initial estimates − $3m net impairment charge (non cash) − $16m capital cost of recovery − $7m cash earnings impact (pre-tax) ¾ Springhill supported the supply of customer needs during recovery period through either direct supply or provision of cold rolled coil

Page 47 PKSW – Production & Despatch Flow

Port Kembla Steelworks Slab Production Slab Export FY09 FY08 1,098 1,909 302 763 3,517 5,285 Interco Western Port (2) 796 1,146 Inventory movements & yield losses Hot Strip HRC Domestic Mill 2,075 2,881 425(3) 653 Port Kembla Steelworks Export (4) Despatches(1) 409 561

FY09 FY08 (5) 3,466 5,210 Interco Domestic Springhill / 1,241 1,667 900 1,183 Distribution Export Asia / Nth 341 484 Am(6) Plate Domestic Plate Mill 293 420 175 292 Legend: Export Product / Dest 46 40 FY09 kt FY08 kt Interco Domestic Distribution 72 88 72 88 Notes: (1) Slab, HRC and plate. (2) See Coated Australia Annual Capacities slide for Western Port Works capacities (3) Domestic HRC ex Port Kembla Steelworks only; ie excludes export HRC despatches from Western Port when reconciling from the ASX Release, Attachment 1 (4) Export HRC ex Port Kembla Steelworks only; ie excludes export HRC despatches from Western Port when reconciling from the ASX Release, Attachment 1 (5) See Coated Australia Annual Capacities slide for Springhill Works capacities (6) See ASX Release, Attachment 1 for detail Page 48 Coated Australia – Annual Capacities

Western Hot Strip Mill HRC Port 1,430 Pickle Line HRC 1,150 Slab Cold Mill CRC 1,000

Port Kembla Metal Coating Lines Metal Coated Steelworks 830 Strip Paint Lines Painted Strip 330 HRC

Springhill

Coupled Pickled Cold Mill CRC 990 Metal Coating Lines Metal Coated 825 Strip Paint Lines Painted Strip 200

Notes: (1) Numbers reflect capacities in kt. Page 49 Port Kembla Steelworks despatches

6,000 5,268 5,209 5,210 4,922 5,000 26% 28% 32% 4,000 40%

) 3,466 s e 18% n 18% 22%

n 3,000 21%

o 16% t

k 17% ( 2,000 51% 61% 1,000 44% 50% 56%

0 FY2005 FY2006 FY2007 FY2008 FY2009 Internal Customers Domestic Customers Export Customers

External Product Slab 44% 49% 31% 33% 22% 100% exported, with (1) geographic sales split: Sales Mix HRC 41% 39% 53% 53% 62% Asia 98% Plate/Oth 15% 12% 16% 14% 16% USA 2% Other 0% 51% sold domestically and 49% exported, with geographic split being: (1) The difference between HRC external despatches reported here and Attachment 1 to ASX Release relates Asia 36% to HRC sales from Western Port (old Coated Products Australia). USA 3% Other 61% Page 50 Port Kembla Steelworks productivity

Employees Productivity (Tonnes per person per year)

6,000 2,000 1,750 1,500

e 4,000

b 1,250

m u 1,000

Output, Tonnes/Employee/Year) 750 y 2,000

l p 500

E 250 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

FISCAL YEARS Largely due to: y Undertaking blast furnace reline; and Productivity (Crude Steel y Material reduction in global steel demand

Page 51 Port Kembla Steelworks – cost profile

Total cost $ A$m

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 1H09 2H09 FY2009 S&A Conversion Costs Despatch & Freight Raw Materials

− Chart shows cost of despatches − Conversion costs include depreciation − Raw material includes iron ore, coal, scrap and alloys but not scrap purchased on behalf of OneSteel Page 52 PKSW – Consumption of primary raw materials

Dry Tonnes Consumed FY2007 FY2008 FY2009 Coal Coking 2.9 3.0 2.2 – Coking coal principally sourced PCI 0.7 0.6 0.4 from local BHP Billiton Anthracite 0.1 0.1 0.0 Illawarra mines (30 year contract from July 2002) Total 3.7 3.7 2.6

Iron Ore Fines 3.9 4.0 2.9 – Contracts in place with BHP Billiton (5.0mtpa; 10 year Lump 1.7 1.6 1.0 contract) and Savage River Pellets 2.2 2.3 1.6 (Grange Resources) Total 7.8 7.9 5.5 – Also supplied by IOC (Rio), OneSteel and Vale Scrap (1) 1.0 1.0 0.7

Raw Steel Production 5.3 5.3 3.5

Note: (1) 40-50% of scrap feed is sourced externally; balance, internally sourced scrap

Page 53 Global iron ore fines, coking coal and semi soft coal benchmark prices

2002 2003 2004 2005 2006 2007 2008 2009 2010

Iron Ore Fines $17.97 $17.54 $19.12 $22.68 $38.88 $46.27 $50.66 $91.14 $61.061 US$/dmt % change 4.3% -2.4% 9.0% 18.6% 71.5% 19.0% 9.5% 79.9% -33% Hard Coking Coal $42.75 $48.10 $46.20 $57.20 $101.00 $116.00 $98.00 $300.00 $129.002 US$/wmt % change 7.5% 12.5% -4.0% 23.8% 76.6% 14.9% -15.5% 206% -57% Semi-soft Coal $35.15 $32.80 $30.80 $40.00 $80.00 $59.00 $65.00 $240.00 $85.003 US$/wmt % change -6.7% -6.1% 29.9% 100% -26.2% 10.2% 269% -64.6%

Notes: 1. Based on Australian iron ore fines settlement with Japan at 62.5% Fe Brazilian fines settlement was -28% at 66% Fe. Pricing under the new iron ore contact with BHP Billiton (effective from 1/7/2010) will be reviewed quarterly and linked to movements in iron ore prices paid by BHP Billiton’s other customers in Asia. 2. Benchmark price settlement. Does not reflect BlueScope price averaging arrangement for April 2009 through to June 2010. 3. Benchmark price settlement.

Page 54 Slab and HRC price benchmarks for Asia & Australian sales

• The following Steel Business Briefing prices continue to be a reasonable public benchmark for BlueScope’s domestic and Asian HRC prices (noting this can change over time).

US$/t Asian HRC Benchmark Price SBB HRC East Asia Import CFR $1,100 HRC $1,000 Steel Business Briefing $900 HRC East Asia Import CFR $800 $700 $600 $500 SLAB $400 Steel Business Briefing $300 Slab East Asia Import CFR $200 $100 $0 Jan-05Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09

Page 55 Port Kembla Steelworks – No.5 Blast Furnace reline

Page 56 Page 56 Port Kembla Steelworks …major capital investments in our future

Photos courtesy Illawarra Mercury y $372M blast furnace No. 5 reline and approximately $140M Sinter Plant upgrade projects delivered safely, on time and largely within budget. Australian Steel Mill Services (an alliance partner) also invested $43M upgrading their slag granulation and handling facilities (adjacent to No. 5). They

remove the slag from both blast furnaces and the BOS. Page 57 Port Kembla Steelworks- No.5 Blast Furnace Reline Project

Photos courtesy Illawarra Mercury y The carbon hearth, refractories and staves (furnace shell cooling elements) were completely stripped out of the blast furnace and replaced with new ones. Internal platforms enabled work at multiple levels.

Page 58 Port Kembla Steelworks – Sinter Plant upgrade

y Sinter plant upgrade completed June 2009 y Total capital cost approximately A$140m, with $9m final spend estimated in FY 2010. y No.3 Sinter machine at PKSW ¾ is single source of 5.3 mtpa of sinter for No. 5 & No. 6 blast furnaces ¾ prior to the upgrade the typical blast furnace burden mix was: 57% sinter (fines based); 25% pellets; 18% lump y Outcome post upgrade and from FY2010 onwards (and after No. 5&6 operating at full capacity) ¾ increased sinter production capacity by 1.1 mtpa to 6.6 mtpa (nameplate capacity is currently 5.5 mtpa) ¾ this will require + 1.1 mtpa of fines BUT would displace 1.0 mtpa of pellets. ¾ increased Pulverized Coal injection rates (cost saving as use more thermal and less coking coal) due to blast furnace permeability being improved by higher quality sinter.

Page 59 Port Kembla Steelworks …the Sinter Plant underwent a major upgrade and 20% increase in capacity

Photos courtesy Illawarra Mercury

Page 60 What is sinter?

Page 61 Australian Distribution & Solutions

Underlying performance – FY 2009 vs FY 2008 Underlying EBIT • EBIT reduction of 90% largely due to − inventory realisable value provision 150 86

− lower despatches s 75

n 100 64 o

higher freight costs i

− l

i M

• Distribution 50 6 22 9

$ A

− weaker demand conditions

T I

• Lysaght B 0 − softer demand across all segments E • Integration of Distribution, Lysaght, Service Centres, -50 -66 Water and Buildings going well. -100

-150

FY07 FY08-1H FY08-2H FY08 FY09-1H FY09-2H FY09

FY 07 1H 08 2H 08 FY 08 1H 09 2H 09 FY 09 Underlying 6 22 64 86 75 (66) 9 Reported 12 (8) 53 45 74 (97) (23)

Note: Smorgon Distribution acquired 3 August 2007.

Page 62 Australian Distribution & Solutions – underlying EBIT variance (FY 2009 vs FY 2008)

600

Net Spread Increase A$88M 500

$390m 400

$ 300

E 200

Other: ($302m) NRV Adjs (41) 100 $86m

$9m ($117m) ($7m) 0 ($41m) June 08 FY Domestic Raw Material Volume Conversion & Other June 09 FY Pr ic es Costs Oth Costs

Page 63 Australian Distribution & Solutions

The Distribution and Solutions division brings together BlueScope Steel’s Australian-based downstream businesses

Emerging Sheet & Coil Business yPlate Processing yTanks/Irrigation yRoofing Services yTube yHot Rolled coil yHigh and Low yWalling ySlitting yStructural Steel yCold Rolled strip rise Buildings yGuttering yShearing yMerchant Bar yPlate y Facades y Rainwater Goods yWarehousing & y Remote yReinforcing Steels yStainless steel yFencing Despatch Buildings yMobile Roll yRural Products yAluminium yContract Services forming yPioneer Water yPipes, Valves & yProcessing / (predominantly for ySupply / install internal customers) Fittings Slitting/Shearing yHighline ySpecialty steels yProcessing Services

Page 64 Australian Distribution and Solutions - Overview

Darwin

Cairns KEY

Lysaght Mareeba Sheet & Coil Processing Services Townsville Sheet Metal Supplies Mount Isa Bluescope Distribution Charters Towers Mackay Bluescope Water

Rockhampton Bundaberg Gladstone Emerald Archerfield Acacia Ridge Carole Park Capalaba Chinderah Eagle Farm Coolum Kawana Kingaroy Rocklea Roma Northgate Oxley Toowoomba Woodridge Acacia Ridge Warwick Geraldton Stapylton Ormeau Lismore Eagle Farm Armidale Balcatta Kewdale Kalgoorie Forrestfield Tamworth Coffs Harbour Forrestfield Port Macquarie Bellevue Bunbury Auburn Arndell Park Malaga Motto Farm Cardiff Belmont Mandurah West Gosford Cardiff Welshpool Bathurst St Marys Chullora Orange Dubbo St Marys Emu Plains Albany Mildura Taren Point Hamilton Bomaderry(Nowra) Chullora SmithfieldPadstow Esperance Wagga Wagga Albury Batemans Bay Queanbeyan Bendigo Bega Shepparton Gillman Horsham BallaratWodonga Wingfield Braeside Wingfield Elizabeth Sunshine Ottoway Morwell Keysborough Portland Dandenong Surrey Hills Sunshine Sites 143 Warrnambool DandenongCampbellfield Dandenong Devonport Burnie GeelongGeelong Lyndhurst Employees 3,600 Westall Active customers >20,000 Page 65 Launceston

Hobart Distribution - Market structure in Australia (FY 2009)

Sales by product group (t) Sales by sector (t)

Other Other 8% Reinforcing Other Distributor 7% 8% Sheet & Coil 28% 8% Mining Building & Merchant Bar 3% Construction 10% 40%

Structural 13%

Plate Manufacturing 18% 42% Tubular 15%

Source : BSD SAP BW (F09 Actual data) Page 66 NewNew ZealandZealand && PacificPacific IslandsIslands

Page 67 New Zealand and Pacific Steel Products

Underlying EBIT Markets 100 90 85 y Domestic – softer demand conditions vs. FY 2008 78 y Export – increased sales in challenging export market.

75 87 s

Underlying performance – FY 2009 vs 2008 n

l l y EBIT up 2%, largely due to i 49

M 50 ¾ improved spread

$ 36 A

¾ favourable FX (US$ vs. NZ$)

T I

y partly offset by B E ¾ higher unit costs 25 ¾ lower vanadium and iron sands despatches 9 ¾ lower domestic steel product sales 0 ¾ inventory realisable value provision y slab production was down 10% on FY 2008 FY07 FY08-1H FY08-2H FY08 FY09-1H FY09-2H FY09

Taharoa asset sale (1) (2) y Continue to investigate sale options FY 07 1H 08 2H 08 FY 08 1H 09 2H 09 FY 09 y At same time seeking to enforce rights under contract with Underlying 90 36 49 85 78 9 87 CKI. Reported 90 44 49 93 56 9 65

Notes: (1) 1H FY08 difference of underlying from reported reflects • Redemption of preference shares by MIL investment (A$11m) • Fiji asset impairment A$3m (A$8M)

(2) 1H FY 09 difference reflects • Growth Feasibility costs A$22m A$22m

Page 68 New Zealand and Pacific Islands Products – underlying EBIT variance analysis (FY 2009 vs FY 2008)

Net spread improvement A$36M

140 $50m Other: NRV Adj's (12) PISE (1) 120 ($10m) $42m ($17m) 100 $87m $85m ($8m)

M ($13m)

$ 80 ($4m)

E 60 ($38m) Costs: Vanadium / Scrap prices (37) 40 Volume (20) Electricity 15 20 Other 4

0 June 08 FY Export Prices Domestic Raw Material Volume Mix Conversion & Exchange Other June 09 FY Pr ic es Cos ts Oth Costs Rates

Page 69 Operations – New Zealand

Glenbrook • Iron and Steel production Auckland • Hot and Cold Rolling Mills Glenbrook Tauranga Wharf • Dual Pot Metal Coating Line Waikato North Head • Paint Line Taharoa • Plate Line • Hollow sections plant

Waikato North Head Mine • Concentrated iron sand slurry pumped to Glenbrook

Taharoa Mine • Approximately 1mt concentrated iron sand shipped to Asia annually

Auckland • Structural Beam plant

Tauranga Wharf • Deep sea export facilities

Page 70 New Zealand - unique direct reduction process

Page 71 New Zealand – raw materials

Iron Sand Concentrate (Waikato North Head Mine) • Iron sand mined and concentrated on site - 58.5% Fe • 13mt of contained product in probable reserves and 13mt of contained product in proven reserves • Additional 591mt of inferred resource • Concentrate is slurry pumped 18km underground to Glenbrook

Thermal Coal • Predominantly sourced from Solid Energy in NZ • Approximately 0.8mt transported by rail to Glenbrook each year

Lime (McDonalds Lime - 28% NZS owned) • 34ktpa lime (oxide and chip) quarried and processed at Otorohanga • Railed and trucked to Glenbrook

Export Iron Sand Concentrate (Taharoa Mine) • Iron sand mined and concentrated on site - 57% Fe • Approximately 1mt of concentrate is slurry pumped to a buoy 2.5km offshore to a dedicated slurry vessel and shipped to China and Japan annually

Page 72 New Zealand Steel – FY2009 product flow

Mine Sites Iron Sands Export 0.7mt 2mt NZS Slab 0.54 HRC 35% Domestic 5% mt Export 51% Export Vanadium Interco (Export) 44% Slag 11kt Plate 11% Domestic 52% Export 48%

Pipe 3% Domestic 100%

Cold Mill 51% Domestic 9% Export 6% Interco (Export) 8%

Coating Lines 77% Domestic Metal Coated 60% Export Metal Coated 8%

Interco Metal Coated (Export) 10% Domestic Painted 17% Export Painted 3%

Interco Painted (Export) 2% Page 73 New Zealand– FY2009 product distribution

Indicative Product Mix (t) Indicative Sales by Country (t) Painted 9% Asia Australia 17% Cold Rolled 13% Metal Coated Japan 11% 31% 6% Pipe Pacific Islands 5% 3%

USA/Canada 14% Indicative Sales by Sector (t) Hot Rolled Manufacturing 46% New Zealand (Incl. Plate 11%) 4% Indirect Export 45% 7%

Building & Construction 20%

Export 55%

Distribution 14% * External & Internal prime product sales Page 74 New Zealand - FY 2009 Non steel revenue streams

Iron Sand • What is vanadium? • Iron sands exports from Taharoa of 702kt, down ¾ a form of metal 20% on FY2008, largely due to the scheduled dry ¾ it is extracted in slag form from the liquid iron dock of the MV Taharoa Express. • What is it used for? Scrap ¾ over 90% of world’s vanadium is added to • Volumes lower than 2008 due to one-off recovery steel as a strengthening alloy project in the prior year. • Volumes: 2009 58kt vs. 2008 93kt. Iron & Steel making Slags • Processed to specification by JV company Steelserv, and sold into roading and construction markets. Vanadium Slag • Lower contribution from Vanadium due to reduced global prices and a 36% reduction in volume. • Volumes down due to lower production: 2009 3.1 M lbs cont V2O5, vs. 2008 4.8 M lbs cont V2O5. • For this period the International benchmark was: 2009 US$8.55/Ib vs. 2008 US$10.17/Ib.

Page 75 AsiaAsia Coated & Building Products Asia

Page 76 Coated and Building Products Asia

Underlying EBIT Markets y Generally weaker demand conditions in all markets y China PEB and Indonesian markets improved in 2H FY 2009. 100 76

80 Underlying performance – FY2009 vs FY 2008 44 50

y EBIT reduction of 128% largely due to s 60

o i

¾ Reduced sales volumes l 26 l

i 40 M

¾ Reduced margins (higher steel feed costs)

$ A

¾ partly offset by

T 20 I

− favourable FX, apart from China B E − favourable sales mix (mainly Thailand) 0 -5 y Growth projects: -16 ¾ Second metal coating line in Indonesia on hold but -20 -21 domestic market conditions improving -40 ¾ Coating project in India delayed completion until 2H CY 2010 but remains within budget. JV arranged project FY07 FY08-1H FY08-2H FY08 FY09-1H FY09-2H FY09 finance to fund remaining commitments. FY 07 1H 08(1) 2H 08 FY 08 1H 09(2) 2H 09(3) FY 09 Underlying 44 26 50 76 (16) (5) (21) Reported 34 (198) 50 (148) (75) (19) (94)

Notes: (1) 1H FY08 difference reflects China (A$190m) and Vietnam (A$35m) asset impairment (2) 1H FY09 difference reflects China asset impairments (A$36m) and NRV/PISE offset with CIPA (A$23m) (3) 2H FY09 difference reflects internal restructure costs across Asia

Page 77 Coated and Building Products Asia – underlying EBIT variance analysis (FY 2009 vs FY 2008)

Raw Materials: External Steel Feed (85) Internally sourced Steel Feed (141) Coating Metals 36 250 NetNet Spread spread Reduction reduction ($40m) A$36M Other 3

$104m 200

150 Volume: Thailand (32) $43m Indonesia (18) 100 China (15) Other:

$ $76m Vietnam (14) Depreciation 13

A Malaysia ( 6) NRV Adj's (5)

T I 50 Asset Sales (4)

E ($187m) 0 $19m $19m $4m ($21m) -50 ($85m) ($15m)

-100 June 08 FY Export Prices Domestic Prices Raw Material Volume Mix Conversion & Exchange Rates Other June 09 FY Costs Others Costs

Page 78 NorthNorth AmericaAmerica Hot Rolled Products Coated & Building Products

Page 79 Hot Rolled Products North America

200 (1) This segment includes: Underlying EBIT y North Star BlueScope Steel (50% interest) 150 155 y Castrip LLC

100 105

s n

Markets (North Star) o

i l

l 50 69 i

y Despatches decreased 28% on FY 2008. M

$ 36

Underlying performance - FY2009 vs FY 2008 I 0 15 B y North Star BlueScope E ¾ 155% EBIT(1) reduction to A$58m loss principally due -50 to − lower despatches (down 28%) -100 − lower spread -58 -73 higher scrap and pig iron prices and FY07 FY08-1H FY08-2H FY08 1H 09 2H 09 FY 09 lower HRC prices − higher electricity costs and alloy prices − inventory net realisable provision FY 07 1H 08 2H 08 FY 08 1H 09 2H 09 FY 09 ¾ production: Underlying 155 36 69 105 15 (73) (58) − average production capacity utilisation for FY Reported 155 36 69 105 15 (73) (58) 2009 was 71% (well above U.S.A industry average).

Note: (1) Reflects BlueScope share of equity accounted net profit after tax Page 80 Coated and Building Products North America

Underlying EBIT 120 Segment comprises: 99 (2) y Building: Butler, VP, HCI 100 y IMSA: SteelScape, MetlSpan, ASC Profiles 80 61

s 60

n (3)

i l

l 37 38 37

Underlying performance – FY 2009 vs FY 2008 i 40

$ y EBIT reduction 91% largely due to A 20

T 9 I

¾ lower sales volumes B ¾ higher unit costs E 0 ¾ margin compression, with higher feed costs -20 ¾ inventory net realisable value provisions (4) ¾ partly offset by -40 -28 − full year EBIT contribution from IMSA assets − costs savings initiatives FY07 FY08-1H FY08-2H FY08 1H 09 2H 09 FY 09 − favourable FX ¾ Buildings FY 07 1H 08 2H 08 FY 08 1H 09 2H 09 FY 09 − external despatches down 9% on FY 2008 Underlying 37 38 61 99 37 (28) 9 − closed 3 facilities Reported 37 43 47 90 (55) (38) (93) ¾ IMSA − synergy results tracking ahead of plan Notes: (1) All EBIT numbers normalised to exclude Vistawall business earnings. This business was sold in June − execution phase for all plant rationalisation 2007. (2) IMSA 5 month underlying EBIT contribution in FY08 was $34m. projects commenced. (3) 1H FY09 difference of $92m reflects NRV/PISE offset with CIPA, IMSA plant rationalisation and integration costs and general insurance and workers compensation provision adjustments (4) 2H FY09 difference represents internal restructure costs and IMSA plant rationalisation and integration costs Page 81 Coated and Building Products North America – underlying EBIT variance analysis (FY 2009 vs FY 2008)

Comprises: y Butler Buildings North America: Butler, VP, HCI y IMSA: SteelScape, MetlSpan, ASC Profiles

Net Margin Reduction A$39M

400 Net Spread Increase A$20M $238m 350

300

s n

o 250

$ 200 Other: A

NRV Adj - Steelscape (25)

T I

B Depreciation / Amort (4) 150 Buildings (50) E IMSA 13 Claims (1) $99m $1m 100 ($219m)

50 $12m ($59m) $4m $9m ($37m) 0 ($30m) June 08 FY Export Prices Domestic Raw Material Conversion & Volume Mix Exchange Other June 09 FY Pr ic es Costs Oth Costs Rates

Page 82 OtherOther

Page 83 Production footprint and annual capacities (at at 30 June 2009)

Asia China 26 Lysaght and MC 250kt PEB Sites Painting 150kt • Coated and Building Products North America India(2) • North Star BlueScope JV Metal Coating 250kt Vietnam Hot Rolling 2.0mt (100%) Painting 150kt MC 125kt • Castrip JV w Nucor Painting 50kt

Thailand Cold Rolling 350kt Brisbane Metal Coating 375kt Painting 90kt Painting 90kt Port Kembla/Illawara Malaysia Raw Steel 5.3mt Metal Coating 160kt Hot Rolling 2.9mt Painting 70kt Indonesia (1) Plate 450kt Metal Coating 100kt (+165kt) Cold Rolling 990kt Painting 40kt (+120kt) MC (3 lines) 825kt PL (1 line) 200kt Australia 6 Service Centres 38 Lysaght Sites New Zealand/Pacific 14 BlueScope Water Iron Sands Mining 2 82 Distribution Sites Raw Steel 625kt Western Port Hot Rolling 750kt Hot Rollling 1.43mt Sydney Cold Rolling 360kt Cold Rolling 1.0mt Paint Line (1 line) 120kt Metal Coating 230kt MC (3 lines) 830kt Painting 65kt Painting (2 lines) 310kt Hollow Sections 45kt (1) Indonesia coating expansion project on hold pending improvement in local and global economic / financial conditions. Roll forming sites 4 (2) Under Construction Page 84 BlueScope Steel China footprint

FY 2009 REVENUE: A$ 513M EBITDA: (A$24M ) EBITDA – Underlying: A$12M EMPLOYEES: 2,047 NET OPERATING ASSETS (PRE-TAX): A$150M

SUZHOU

BlueScope Steel in China 1 Metal Coating/Painting Line Facility 4 Lysaght Manufacturing Facilities 3 Butler PEB Manufacturing Facilities 32BlueScope Steel China Sales Offices GUANGZHOU Page 85 BlueScope Steel North American footprint

FY 2009 REVENUE: A$ 2,189M EBITDA (reported): (A$92M) EMPLOYEES: 4,003 incl. North Star NET OPERATING ASSETS (PRE-TAX): A$1,102M NB: Revenue excludes BSL’s 50% interest in North Star BlueScope Steel. Alaska

WAW A ME MT ND OR VT Burlington, Ontario MN NH ID MA ID SD WI NY CT RI WY MI PA IA NJ NE IL OH NV MD DE IL IN UT CO WV KS MO VA KEY CA VA CA KY NC ASC TN NC AZ OK MetlSpan NMN AR SC AL M Steelscape AL GAG MS A TXT LA BlueScope Buildings X FL BSL Steel Sales Offices

NorthStar BlueScope

Mexico

Page 86 Calendar year earnings

A$ Millions CY2003 CY2004(3) CY2005 CY2006CY2007 CY2008(4)

Revenue(1) 5,328 7,029 7,980 8,6939,333 11,926 EBITDA(2) 857 1,501 1,411 1,0521,130 1,775 EBIT(2) - reported 581 1,212 1,111 742792 1,399 - operational - - 1,308 966924 1,532

Net profit - reported 436 859 792 413414 887 - operational - - 943 586563 989 EPS (¢) - reported 56 116 110 5956 116

(1) Excludes revenue of equity accounted associates, e.g. North Star (2) Includes share of equity accounted associates’ NPAT, e.g. North Star (3) Includes eight months of BlueScope Butler financial results (4) Includes eleven months of Smorgon Distribution financial results and five months of IMSA Steel financial results

Page 87 Corporate and Group Costs – impacted each half by profit in stock elimination and foreign exchange movements

50 30 6 A$m -9 -3 0 1H 2008 2H 2008 FY 2008 1H 2009 2H 2009 FY 2009

-50

-100 -106

-150 -136 Comprised of: Underlying cost (58) (43) (101) (61) (35) (96) Profit in stock adj (10) (89) (99) 94 32 126 FX 5 15 20 (22) (4) (26) Other 93(1) (19) (2) 74 (5) (2) (7) Total 30 (136) (106) 6 (9) (3) y FY 2010: Continue momentum on cost saving initiatives

Note: (1) Profit from realisation of Smorgon Steel shares ($128m), net of Distribution integration, restructuring and M&A costs (2) IMSA integration costs

Page 88 Historical dividend profile since listing in July 2002

Interim Final Special

70 42 / 20¢ 60 49 / 0¢ 20 47 / 0¢ 50 44 / 0¢ 30 / 10¢ 40 22 / 7¢ 10 26 27 30 24 24 7 20 18 13 10 18 20 21 22 5 / 0¢ 9 12 0 5 2003 2004 2005 2006 2007 2008 2009 FISCAL YEARS

Page 89 Restructure & redundancy costs, together with impairment charges, are the key reconciliating items between underlying and reported profit

EBIT ($M) NPAT ($M)

FY 2009 FY 2008 FY 2009 FY 2008

Reported 15 1,063 (66) 596 Unusual or non-recurring events: ¾ Asset impairment 36(1) 251(1) 36 248 ¾ Profit on sale of Smorgon shares - (128) (2) -(90) ¾ Restructure & redundancy costs(3) 110 32 77 22 ¾ Write off feasibility costs on capital projects(4) 22 - 15 - ¾ Integration of Smorgon Steel’s distribution business(5) - 29 - 20

¾ Integration of IMSA businesses(6) 433223

¾ Other (16) (7) (8) (3) Underlying Operational Earnings 171 1,273 56 816

(1) Asset Impairments: 2009 China - Metal Coating & Painting Line, Suzhou ($25m) and Lysaght Panels, Langfang ($11m) – lower than expected volumes and margins 2008 China – ($190m) – outlook for coated margins remains very tight Vietnam – ($35m) – no resolution to the tariff status Lysaght Australia ($23m) and Lysaght Figi ($3m) – systems write-off and under performing assets resulting in a reassessment of the future cash flows and requirement to impair the assets. (2) Profit on sale of 19.9% shareholding in Smorgon Steel associated with the acquisition of Smorgon Distribution (3) Restructure & redundancy costs: 2009 Cold Mill closure at Port Kembla ($20m), IMSA plant rationalisation costs ($15m), and restructure costs in Australia ($52m), Nth America ($9m) and Asia ($14m) 2008 Redundancy costs associated with closure Port Kembla No. 1 paint line ($11m) and internal restructuring costs in Australia ($21m). (4) Feasibility costs associated with optimisation studies on hold ($22m) (5) Integration of SSX Distribution ($10m) and recognised inter-company profit eliminations in inventory ($19m) (6) Integration and accounting entries relating to IMSA Steel Corp ($4m). Page 90 Major approved capital projects and investment summary (in addition “Stay in Business” capital is approx. 75% of depreciation)

PROJECTS Total Est. Actual to FY2010 FY2011 FY2012 All in A$million Capex / Cost 30/6/09 Projects completed Thailand – Coating expansion 80 80 - - -

Vietnam – Coating / Painting 136 136 - - - China - Coating and Painting Facility 274 274 - - - - Guangzhou Butler / Lysaght 33 33 - - - India - Butler / Lysaght facilities (50% interest) 44 44 - - - Australia Port Kembla (PKSW) - HSM expansion 102 102 - - - - Sinter Plant Emissions 100 100 - - - WA Service Centre 21 21 - - - Western Sydney Colorbond® 150 150 - - - Projects to be completed(1) Indonesia – Coating / Painting(2) 134 86 - (2) - (2) - (2) PKSW – Blast Furnace No. 5 Reline 372 352 20 - - – Sinter plant upgrade 140 132 8 - - – Steam infrastructure spend 93 - 37 50 6

INVESTMENTS IMSA North American businesses 807 807 - - 700 572 (3) Smorgon Steel’s Distribution business - - - Butler Manufacturing(4) 277 277 - - - Lysaght and water acquisitions 129 129 - - - Total capital spending 3,592 3,295 65 50 6

Note (1): India project funded under project financing within JV. Project remains on budget at approximately A$270M. (2) Indonesian project – work on hold pending improved demand. Will update remaining capital profile when project restarts. (3) Gross cost of $700m less pre-tax profit on SSX shares of $128M leaves $572M. (4) US$190M (A$226M) recovered following the sale of Vistawall in June 2007. Page 91 Zinc and Aluminium Usage

Tonnes Zinc Aluminium FY2009(A) FY2008(A) FY2009(A) FY2008(A) AUSTRALIA Springhill 17,911 22,711 9,537 10,595 Western Port 15,827 21,954 8,758 10,590 Sub-total 33,738 44,665 18,295 21,185

NEW ZEALAND 6,679 6,831 3,206 3,619

ASIA 10,744 16,672 11,563 16,571

TOTAL 51,161 68,168 33,064 41,375

Page 92 Committed Debt Facilities as at 31 July 2009

MaturityCommitted Drawn US$/THBm A$m A$m

Syndicated Loan Note Facility Tranche 1 Jul-11 200 21 Tranche 2 Jul-12 1,075 - 2004 US Private Placement Notes Series A Jul-11 US$100 121 121 Series B Jul-14 US$200 242 242 2008 US Private Placement Notes Series A Jun-15 US$81 98 98 Series B Jun-18 US$204 247 247 Series C Jun-20 US$40 48 48 Other Facilities Sale and leaseback (1) Aug-11 170 170 Trade payables facility May-10 US$85 103 28 Subsidiary loan Nov-10 THB2,000 71 - Subsidiary loan Oct-10 THB1,000 36 - US facilities (2) Various 33 11 2,444 986

(1) In the year ended 30 June 2007, the Company entered into a sale and leaseback transaction which raised approx imately $270m net cash. The relevant assets hav e been leased back over a five-year period. This transaction has been accounted for as a borrowing. Lease payments ov er the term of the arrangement are fixed and amortise to a principal amount of A$44m. (2) Comprises US$20m line of credit and other loans/finance leases of US$7m.

Exchange rates as at 31 July 2009: A$/US$ = 0.8249; A$/THB = 28.084 Table above excludes sold receiv ables. As at 31 July 2009, A$72m was drawn of the A$190m program. The program matures in August 2009. Page 93 Shares on issue – historical movements

Million (rounded) y Shares on issue at listing (July 2002) 793 y Share buy-backs to 31/12/08 (116) y Dividend reinvestment scheme to 30/06/09 +67 y Employee share plan issues to 30/06/09 +34 y Institutional share placement (Dec 08) +97 y Share Purchase Plan (Feb 09) +36 y Institutional (May 09) +515 y Retail (June 09) +397 y Shares on issue 30/06/09 1,823

Page 94 FY2009 Results Presentation Period Ended 30 June 2009 Paul O’Malley, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 17 August 2009

ASX Code: BSL