Earnings Report Six Months Ended 31 December 2007

BLUESCOPE STEEL LIMITED A.B.N. 16 000 011 058 Level 11, 120 Collins Street Melbourne, Victoria 3001 Ph: +61 (03) 9666 4000 Fax: +61 (03) 9666 4111 Website: www.bluescopesteel.com ASX Code: BSL

FOR IMMEDIATE RELEASE

RESULTS FOR ANNOUNCEMENT TO THE MARKET (Under ASX listing rule 4.2A)

Half Year Earnings Report Six Months Ended 31 December 2007 Note: This report is based on accounts prepared in accordance with the Australian Equivalents to International Financial Reporting Standards (AIFRS). Melbourne – 25 February 2008 – BlueScope Steel Limited (ASX Code: BSL) today reported its financial results for the six months ended 31 December 2007.

Table 1 provides a recap of headlines for the first half FY 2008. Table 1: 1H FY 2008 Headlines Earnings performance „ The underlying operational net profit after tax (NPAT) for the first half FY 2008 was $305m or 21% lower than the $384m in the previous corresponding period. The reported NPAT was $116m (vs $388m for 1H FY 2007). Please refer to the following table for a high level reconciliation between reported and underlying earnings (PLEASE REFER TO TABLE 2B FOR A DETAILED REVIEW OF THE “UNUSUAL OR NON-RECURRING EVENTS”)

Reported vs Underlying variances EBIT ($M) NPAT ($M) EPS (cps) 1H 2008 1H 2007 1H 2008 1H 2007 1H 2008 1H 2007 Reported 328 635 116 388 0.16 0.55 Unusual or non-recurring events: ¾ Asset impairments related to China 251 0 247 0 0.34 0.00 coating, Vietnam coating, Lysaght Australia and Fiji ¾ Profit on sale of Smorgon shares (128) 0 (90) 0 (0.12) 0.00 ¾ Restructure & redundancy costs 24 (5) 17 (3) 0.02 (0.00) ¾ Profit in stock elimination adjustments and 26 0 18 0 0.02 0.00 integration costs associated with Smorgon Steel’s distribution business ¾ Other (7) (4) (3) (1) (0.00) (0.00) Underlying Operational Earnings 494 626 305 384 0.41 0.54

Financial ratios 1H FY 2008 1H FY 2007 „ Return on equity (based on net profit after tax (NPAT) attributable to shareholders) (1) 6.0% (15.9%) 24.0% (23.7%) (1) „ Return on invested capital (based on NPAT) 5.8% (12.6%) 17.0% (16.9%) „ Gearing (net debt/net debt plus equity) 31.8% 35.6% Note (1) Returns quoted in brackets relate to underlying operational performance

Dividends „ Interim ordinary dividend 22cps, fully franked (vs 21 cps in 1H FY 2007) „ Dividend reinvestment plan (DRP) will apply to the FY 2008 interim dividend and will be fully underwritten.

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Business Performance (relative to 1H FY 2007) „ Australia „ Hot Rolled Products – another outstanding operations performance at near record production levels. Reported earnings were down largely due to the improved spread being offset by higher freight and repairs and maintenance and stronger A$ „ Coated Australia – underlying earnings improved largely due to increased spread (higher sales prices and lower steel feed and coating costs), inclusion of Smorgon Distribution, partly offset by stronger A$ and higher unit costs.

„ New Zealand „ Reliability of the steelmaking facility has improved significantly. Domestic despatches were down 11% due to increased import competition and slowdown in residential segment. Underlying earnings were down largely due to reduced spread (improved sales prices offset by higher coal costs) and unfavourable NZD:USD exchange rate movement.

„ Asia „ Mixed results in Asia with underlying EBIT down 23% largely due to reduced margins in Thailand (coup). Malaysia and Indonesia continued to do well as did the Butler PEB business in China. The underlying China coated results were flat on 1H FY07 due to continued margin compression whilst Vietnam made a modest profit largely due to product and market initiatives. Excellent operations performance across all regions.

„ North America „ North Star – another excellent operations performance with production up 4%. Underlying earnings down 63% due to reduced spread between hot rolled coil prices and scrap costs. „ Coated North America – continued strong operational performance. Strong earnings improvement largely due to improving margins and productivity.

Capital Growth Projects and Acquisitions „ The second Indonesian metal coating line project remains on schedule whilst the India metal coating and paint line project has slipped into CY 2010. „ On 20 December 2007 BlueScope announced it had agreed to acquire the outstanding shares of IMSA Steel Corp for US$730 million from Ternium S.A. Regulatory approval and all other conditions precedent have been satisfied and BlueScope took ownership on 1 February 2008.

“Blueprint” update „ Paul O’Malley, new Managing Director and CEO, made a presentation to investors, on 29 November 2007, setting out his approach to doing business at BlueScope in the future. „ Since November 29 we have developed an appropriate infrastructure that will enable the successful delivery of the Blueprint initiatives, including: o Established a Program Management Office, reporting to the Managing Director and CEO, to track and report business improvement initiatives which over time will deliver real value to the bottom line o Developed a KPI framework for each business unit aligned to the 8 Blueprint Basics (detailed in November 29 presentation) „ We are also on track to deliver the $200m in working capital reductions / land sales in FY 2009.

Interim Dividend Schedule „ Ex-dividend – 28 February 2008 „ Record date – 5 March 2008 „ Payment date – 1 April 2008

ASX 2008 Half Year Earnings Report_FINAL Page: 2 Dated: 25/02/2008 Consolidated Results Table 2a provides the 1H FY2008 consolidated financial results and the comparable FY2007 period. Table 2b reconciles underlying operational earnings to reported earnings.

Table 2a : Financial Headlines Six months ended 31/12/07 (“1H 2008”) and 31/12/06 (“1H 2007”) Variance Financial Measure 1H 2008 1H 2007 $ % (1) Total revenue A$M 4,734 4,528 206 5 Earnings before interest, tax, depreciation (2) and amortisation (EBITDA) A$M 502 794 (292) (37) (2) EBIT – Reported A$M 328 635 (307) (48) – Underlying A$M 494 626 (132) (21) Interest expense A$M (66) (72) 6 8 NPAT attributable to BlueScope Steel shareholders – Reported A$M 116 388 (272) (70) – Underlying A$M 305 384 (79) (21) Earnings per share – Reported ¢/s 15.7 54.7 (39.0) (71) – Underlying ¢/s 41.4 54.3 (12.9) (24) (3) Diluted earnings per share ¢/s 15.6 54.6 (39.0) (71) Interim dividend ¢/s 22 21 1 5 Net cash flow from operating activities (pre- tax) A$M 600 697 (97) (14) (4) Return on invested capital – Reported % 5.8% 17.0%

– Underlying % 12.6% 16.9% (5) Return on equity – Reported % 6.0% 24.0% – Underlying % 15.9% 23.7% Gearing (net debt / net debt plus equity) % 31.8% 35.6% Net tangible assets per share $/s 3.98 4.40

(1) Excludes the company’s 50% share of North Star BlueScope Steel revenue of $310M in 1H 2008 ($373M in 1H 2007). Includes revenue other than sales revenue of $15M in 1H 2008 ($20M in 1H 2007). (2) Includes 50% share of net profit from North Star BlueScope Steel of $38M in 1H 2008 ($102M in 1H 2007). (3) Earnings per share is diluted for executive share right awards that are likely to vest based on current TSR performance. (4) Return on invested capital is defined as net profit after tax (annualised in case of half year comparison) over average monthly capital employed. (5) Return on equity is defined as net profit after tax (annualised in case of half year comparison) attributable to shareholders over average monthly shareholders’ equity. (6) Gearing post the acquisition of IMSA Corp is 40%.

Variance Analysis (1H 2008 vs. 1H 2007)

„ Total revenue

The $206M (5%) increase principally reflects: „ Additional volume delivered following the acquisition of Smorgon Steel’s distribution business on the 3rd August 2007. „ Higher global slab and hot rolled coil prices. „ Higher Coated and Building Products Australia export volumes. „ Higher Coated and Building Products sales volumes across all regions within Asia. „ Higher scrap sales from Hot Rolled Products Australia.

Partially offset by: „ Reduced volumes following the sale of the Vistawall business in 2H 2007. „ Higher average AUD:USD exchange rate of 0.868 compared to the previous corresponding period of 0.764. „ Unfavourable destination mix to export despatches following the closure of the tinplate operations in 2H 2007.

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„ EBIT

The $132M (21%) decrease in underlying EBIT principally reflects:

Spread ($62M favourable)

Prices ($138M favourable) – Higher export slab and hot rolled coil prices from Hot Rolled Products Australia. – Higher export prices realised by Coated and Building Products Australia, in particular for galvanised and cold rolled product, were driven by higher global slab and hot rolled coil prices. – Higher Coated and Building Products prices in North America and Asia (predominantly Thailand and Malaysia).

Raw material costs ($76M unfavourable) – Higher scrap costs and higher USD iron ore purchase prices at the Port Kembla Steelworks. – Higher steel feed costs principally in Coated and Building Products Asia (note: these were unable to be fully recovered through higher prices resulting in reduced margins).

Partly offset by: - Lower zinc coating metal cost. - Lower cost of coal at Port Kembla Steelworks partly offset by higher coal costs at New Zealand Steel.

North Star BlueScope Steel ($64M unfavourable) – Reduced spread following lower hot rolled coil prices combined with increases in the cost of scrap in North America.

Exchange rates ($40M unfavourable) – Unfavourable movement in the AUD:USD relative to the previous comparative period. Average exchange rate for 1H 2008 was 0.868 compared to 0.764 in 1H 2007.

Sales volumes and product mix ($11M unfavourable) – Unfavourable destination mix to export despatches mainly following the closure of the tinplate operations in 2H 2007.

Partly offset by: – Higher volumes driven by the acquisition of Smorgon Steel’s distribution business on the 3rd August 2007.

Costs ($55M unfavourable) comprising the following components:

Cost improvement initiatives ($46M favourable) - Cost reductions reflecting the effect on unit costs of initiatives to improve yield, labour productivity and other costs.

Cost escalation ($47M unfavourable) - Escalation of employment, utilities, consumables and other costs.

One-off and discretionary costs ($47M unfavourable) - Additional discretionary maintenance at Port Kembla Steelworks to support strong production and maintain No.5 Blast Furnace volumes prior to planned reline. - Higher unit costs associated with the ramp up of the Western Sydney COLORBOND® Steel Centre and ramp up of cold rolled export sales to replace domestic tinplate.

Other costs ($7M unfavourable) - Higher freight costs primarily due to destination mix, additional cost of fuel and rate increases.

Other Items ($24M unfavourable) – Employee share ownership plan costs during 1H 2008. The previous years plan was deferred until 2H 2007. – Dividend income received during 1H 2007 on 19.9% shareholding in Smorgon Steel.

ASX 2008 Half Year Earnings Report_FINAL Page: 4 Dated: 25/02/2008 Unusual or non-recurring items in reported EBIT include ($175M unfavourable) – Impairment of China Metal Coating Line and Vietnam Metal Coating Line facilities, Lysaght Home Improvements and Lysaght Fiji due to lower than expected domestic volumes and margins in these businesses. – Write off of capitalised Movex application costs driven by the acquisition of Smorgon Steel’s distribution business and the intention to migrate Lysaght Australia onto the ERP system utilised by distribution. – Integration costs associated with the acquisition of Smorgon Steel’s distribution business and the one-off impact of recognising inter-company profit eliminations in inventory. – Higher redundancy and restructuring costs at Coated and Building Products relating to the announced closure of the CPL 1 paint line and internal business restructure costs within Corporate and Group. – Profit on sale of surplus land in New South Wales during 1H 2007.

Partly offset by: – Profit on sale of the 19.9% shareholding in Smorgon Steel. – Redemption of B class preference shares in Manukau International Limited, an investment vehicle of the New Zealand Steelworks pension fund, which had previously been impaired. – Closure of the Packaging Products and Lysaght Taiwan loss making businesses during 2H 2007.

„ Funding

Financing costs for the six months ended 31 December 2007 were $64M ($69M in 1H 2007). The decrease in costs reflects a $446M decrease in average borrowings to $1,708M partly offset by a higher average interest rate of 7.9% (6.1% on 1H 2007).

„ Tax

The effective tax rate for the six months ended 31 December 2007 was 54.4% (29.8% in 1H 2007). The tax rate differs from the Australian tax rate of 30% primarily due to the non-tax deductibility of impairments of the China Metal Coating Line, Vietnam Metal Coating Line, Lysaght Home Improvements and Lysaght Fiji during 1H 2008 combined with our North American operations being taxed at approximately 36% (35% US tax rate plus state taxes). The effective tax rate for the half year excluding the impairment write downs was 27.5%.

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Table 2b: Reconciliation of Underlying Operational Earnings to Reported Earnings 1H 2008 vs. 1H 2007; $ millions Underlying Operational Earnings have been adjusted for unusual or non-recurring events to reflect the underlying financial performance from ongoing operations.

EBIT NPAT EPS Factors 1H 2008 1H 2007 1H 2008 1H 2007 1H 2008 1H 2007 Reported earnings 328 635 116 388 0.16 0.55 Net (gains)/losses from businesses 3 13 3 9 0.00 0.01 discontinued(1) Reported earnings (from continuing 331 648 119 397 0.16 0.56 operations) Unusual or non-recurring events: Operating results affected by discontinued 0 (18) 0 (13) 0.00 (0.02) businesses(2) Business development and pre-operating 6 8 4 8 0.01 0.01 costs(3) Asset impairment(4) 251 0 247 0 0.34 0.00 Restructure and redundancy costs(5) 24 (5) 17 (3) 0.02 (0.00) Profit on Sale of Smorgon Steel shares (128) 0 (90) 0 (0.12) 0.00 Profit in stock elimination adjustments and 26 0 18 0 0.02 0.00 integration costs associated with Smorgon Steel’s distribution business(6) Asset sales(7) 0 (7) 0 (5) 0.00 (0.01) Manukau International Limited investment (11) 0 (7) 0 (0.01) 0.00 redemption(8) Other (9) (5) 0 (3) 0 (0.00) 0.00 Underlying Operational Earnings 494 626 305 384 0.41 0.54 (1) Losses incurred in Packaging Products and Lysaght Taiwan businesses that were closed during 2007 and sale of Vistawall business during 2H 2007. 1H 2008 relates to a Vistawall post completion sale price adjustments. (2) Reflects domestic transfer pricing margins earned by Hot Rolled Products Australia arising from the tinplate operations which have been closed. (3) 1H 2008 driven by pre-operating costs in Coated and Building Products Australia associated with the start up of the Western Sydney COLORBOND® Steel Centre and Corporate M&A activity. 1H 2007 driven by business development and pre-operating costs in Asia, North America and Corporate. (4) Impairment of China Metal Coating Line and Vietnam Metal Coating Line facilities, Lysaght Home Improvements and Lysaght Fiji due to lower than expected domestic volumes and margins in these businesses. Write off of capitalised Movex application costs driven by the acquisition of Smorgon Steel’s distribution business and the intention to migrate Lysaght Australia onto the ERP system utilised by distribution. (5) 1H 2008 driven by staff redundancies and other internal restructuring costs at Coated and Building Products Australia in relation to the announced closure of the CPL 1 paint line combined with internal business restructure costs within Corporate. 1H 2007 driven by reversal of redundancy provisions at Hot Rolled Products Australia. (6) Integration costs associated with the acquisition of Smorgon Steel’s distribution business ($7M) and the one-off impact of recognising inter-company profit eliminations in inventory ($19M). (7) 1H 2007 reflects sale of property in New South Wales within the Coated and Building Products Australia segment. (8) In FY 2003, in support of the New Zealand Steel Pension Fund, an investment of $11 million was made in redeemable preference shares of Manukau International Limited, a company that has financial obligations to the Fund. While the investment resulted in an improvement in the financial position of the Pension Fund, it was fully provided for in FY 2003 on the basis that it was not considered recoverable by the company. In 1H 2008 Manukau International Limited repaid this investment in full. (9) Write back of over-provided liabilities in relation to a UK pension fund within Coated and Building Products North America.

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Equity, Financial Flexibility and Cash Flow

Table 3 below provides a summary of consolidated equity and return measures at 31 December 2007 and 2006.

Table 3: Consolidated – Return Statistics 1H 2008 and 1H 2007; mixed measures 1H 2008 1H 2007 % Return Statistics Shares outstanding – end of period (millions) 742.4 726.6 2 Average shares – for the period (million) 737.3 709.4 4 Return on equity – based on NPAT attributable to shareholders 6.0% 24.0% (75) (%) Return on equity – based on underlying operational NPAT 15.9% 23.7% (33) earnings (%) Return on invested capital – based on NPAT (%) 5.8% 17.0% (66) Return on invested capital – based on underlying operational 12.6% 16.9% (25) NPAT earnings (%)

Table 4 below provides a summary of key financial flexibility metrics based on underlying operational performance.

Table 4: Consolidated – Financial Flexibility Measures 1H 2008 and 1H 2007; mixed measures Variance Financial Flexibility Measures 1H 2008 1H 2007 $M % Underlying Operational EBITDA $M 668 785 (117) (15) Interest expense $M 66 72 (6) (8) Borrowings $M 1,745 1,983 (238) (12) Underlying Operational EBITDA / interest times 10 11 (1) (9) Debt / Underlying Operational EBITDA times 1.3 1.3 - -

ASX 2008 Half Year Earnings Report_FINAL Page: 7 Dated: 25/02/2008 Table 5 below provides a summary of consolidated operating and investing cashflows.

Table 5: Consolidated Cash Flow 1H 2008 and 1H 2007; $ millions Variance Factors 1H 2008 1H 2007 $M % EBITDA (1) 502 794 (292) (37) Add back non cash items - Share of profits from associates and (10) (36) 26 72 joint venture partnership not received as dividends - Impaired assets 251 1 250 25,000 - Net (gain) loss on sale of assets (139) (11) (128) (1,164) - Expensing of share-based employee 13 4 9 225 benefits Cash EBITDA 617 752 (135) (18) Changes in working capital (17) (55) 38 69 Net cash from operating activities 600 697 (97) (14) Net cash from investing activities (2) (484) (564) 80 14 Cash from operating and investing 116 133 (17) (13) (pre-tax) Interest paid (67) (76) 9 12 Tax paid (139) (126) (13) (10) Cash from operating and investing (post- (90) (69) (21) (30) tax) (as per statutory cash flow)

(1) Refer EBIT Variance Analysis for major changes in EBITDA. (2) The decrease in investing activities reflects lower capital expenditure associated with the Western Sydney COLORBOND® Steel Centre, Port Kembla No 5 Blast Furnace Reline and India developments. The acquisition of Smorgon Steel’s distribution business (net of proceeds on sale of 19.9% shareholding in Smorgon Steel) was lower than the acquisition of the 19.9% shareholding in Smorgon Steel during 1H 2007.

Group Review In commenting on the half year results, the Managing Director & Chief Executive Officer of BlueScope Steel, Mr Paul O’Malley, said:

During the “Blueprint” presentation to the market on 29 November 2007, I noted the Company would be performing a detailed review of assets and market conditions to identify any impairment issues. This exercise has resulted in the Company taking a decision to write down certain assets, principally the China ($190 million) and Vietnam ($35 million) metal coating facilities. These decisions have been made largely due to the outlook for coated margins in China remaining very tight and no resolution to the tariff status in Vietnam, resulting in a reassessment of future cash flows from both of these facilities. The Company remains committed to operating these assets and under Australian accounting rules would be required to write back the asset values in the future if market conditions improve. We have also made management changes in China to significantly upgrade our capability to work on the turnaround strategy.

These write downs, the gain on the sale of Smorgon Steel shares and other factors, covered in detail in Table 2b of the ASX release, have resulted in reported earnings being A$189 million lower than the underlying operational performance. Reported NPAT for the first half of FY2008 is A$116 million. However, the underlying NPAT is A$305 million, which is down 21% on the first half FY2007 result of A$384 million. This reduction is primarily due to a stronger Australian dollar, reduced spread for North Star BlueScope Steel, increased iron ore, steel feed and other operational costs, which were partly offset by higher global slab and HRC prices. The Board has decided to increase the interim dividend to 22 cps.

Operating cashflows of $600m continue to highlight the quality of the assets, employees and improving relationships with our customers. The coverage ratios also remain very strong.

ASX 2008 Half Year Earnings Report_FINAL Page: 8 Dated: 25/02/2008 Now to the performance of the various reporting segments, starting with Hot Rolled Products Australia where underlying earnings were down 14%. Notwithstanding higher slab and hot rolled coil prices the result was lower due to a stronger Australian dollar and higher USD iron ore, scrap and alloy purchase prices and higher freight costs. Discretionary repairs and maintenance costs were higher to support record production rates. Production was maintained at near record levels for all facilities, and the target month to commence No. 5 Blast Furnace reline currently remains March 2009. The cost for the reline is expected to be $370 million, an increase of $40 million since it was first announced, as a result of a reassessment of the cost of labour for the project driven by the current resources boom in Australia.

“Coated and Building Products Australia had a solid first half with underlying operational earnings increasing 32%, rising from $38 million in the previous half to $50 million for the first half FY2008. The increase was in two parts. Firstly, the acquisition of the Smorgon Steel distribution business in August 2007 contributed substantially to the increase although this business had a lower than expected first five months as the business worked to maintain market share by being price competitive with imports. Secondly, higher export volumes and prices, particularly for galvanised and cold rolled coil, and lower zinc costs partially offset by higher unit costs associated with the ramp up of the Western Sydney COLORBOND® Steel Centre and ramp up of cold rolled export sales to replace domestic tinplate also contributed to the earnings increase.

“Underlying earnings for New Zealand and Pacific Steel Products decreased, by $7 million largely as a result of higher coal prices and adverse foreign exchange movement (NZ$:US$). Importantly, the reliability of the steel making operation has improved significantly and was a particular area of focus for the management team of this business.

“The Asia group result, in total, continued to disappoint and remains a key focus of our management efforts. Our Indonesian and Malaysian businesses continued to deliver stable financial performance and both have had very good operational performance. In Thailand we continue to be affected by soft domestic demand. The continued improvement in the Butler China business is pleasing, however the performance of the China and Vietnam coated businesses is disappointing. Longer term I believe our Asian business can deliver a vastly better performance, part of which will come from improved economic conditions in Thailand.

“Our North American businesses had a mixed result for the half. Earnings for Hot Rolled Products North America were down materially due to lower hot rolled coil prices and increased scrap costs, as well as a weaker US dollar. On the other hand, underlying earnings for Coated and Building Products North America rose by over 60% to $38 million as a result of management initiatives delivering improved volumes and margins. This was an outstanding result.

“We have been active on the growth front, firstly with the acquisition of Smorgon Distribution here in Australia in August 2007 and HCI Steel Building Systems in the United States in October. The integration of the Smorgon distribution operation is on schedule. HCI (a stand alone steel PEB business) provides access to the high-growth north western US and western Canada markets. Earlier this month, we concluded the acquisition of IMSA Steel Corp which will accelerate our North American strategy, broadening our scope and geographic reach. Together, with our Butler operations, we are a leading player in the North American steel building and construction markets. We are pleased to welcome the 4,400 new employees from Distribution, HCI and IMSA.

“During the period, I announced my Blueprint for doing business at BlueScope Steel. The Blueprint builds on BlueScope Steel’s successful first five years with an increased focus on customers, growing market share, particularly relative to imports, improving capital planning, gaining procurement efficiencies and driving manufacturing excellence to improve shareholder value. We are still at the early stages of implementation and I will update the market in August on our progress and results.

“At the end of this month, Charlie Elias joins us as Chief Financial Officer. He is an outstanding finance executive, with a solid track record in mergers and acquisitions and business performance improvement, and will further strengthen our senior executive team. We have also made a number of management changes at various operations to complement our Blueprint objectives.

Outlook

“We are expecting to see an improvement in earnings in the second half. This is largely due to higher global steel prices driven by continued strength in world steel demand. The benefit to BlueScope will be more evident in the 4th quarter FY 2008 as sales prices in 3rd quarter are largely set. The bulk of our iron ore and coking coal contracts are priced based on an Australian financial year, starting 1 July. However, we are expecting the A$ to remain stronger than the average in 1H 2008 and the benefit of increased hot rolled coil prices at North Star BlueScope Steel will be largely offset by higher scrap costs.”

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BUSINESS UNIT REVIEWS

Table 6a: Sales Revenue 1H 2008 and 1H 2007; 2H 2007; $ millions Segment 1H 2008 1H 2007 2H 2007

Hot Rolled Products Australia 2,020 2,000 1,919 Coated and Building Products Australia 2,120 1,536 1,649 (1) Inter-segment (722) (874) (857) Sub-total Australia 3,418 2,662 2,711 New Zealand and Pacific Steel Products 341 364 365 Coated and Building Products Asia 751 676 711 (2) Hot Rolled Products North America 266 288 278 Coated and Building Products North America 395 446 342 (1) Inter-segment (3) (3) (4) Sub-total North America 658 731 616 (3) Corporate and Group 234 229 236 (1) Inter-segment (668) (410) (533) Continuing Businesses 4,734 4,252 4,106 (4) Discontinued Businesses 2 382 365 Inter-segment (17) (126) (119) Total BLUESCOPE STEEL 4,719 4,508 4,352

Table 6b: Reported EBIT 1H 2008 and 1H 2007; 2H 2007; $ millions Segment 1H 2008 1H 2007 2H 2007 Hot Rolled Products Australia 354 438 321 Coated and Building Products Australia 6 49 (8) (1) Inter-segment (19) (34) 9 Sub-total Australia 341 453 322 New Zealand and Pacific Steel Products 44 43 47 Coated and Building Products Asia (195) 31 11 Hot Rolled Products North America 47 112 68 Coated and Building Products North America 43 23 14 (1) Inter-segment 0 0 0 Sub-total North America 90 135 82 (3) Corporate and Group 62 (14) (28) (1) Inter-segment (12) 4 (3) Continuing Businesses 330 652 431 (4) Discontinued Businesses (3) (13) 28 Inter-segment 1 (4) 5 Total BLUESCOPE STEEL 328 635 464

ASX 2008 Half Year Earnings Report_FINAL Page: 10 Dated: 25/02/2008 Table 6c: Underlying EBIT 1H 2008 and 1H 2007; 2H 2007; $ millions Segment 1H 2008 1H 2007 2H 2007 Hot Rolled Products Australia 354 414 313 Coated and Building Products Australia 50 38 (5) (1) Inter-segment (19) (34) 9 Sub-total Australia 385 418 317 New Zealand and Pacific Steel Products 36 43 47 Coated and Building Products Asia 30 39 13 Hot Rolled Products North America 47 112 68 Coated and Building Products North America 38 23 14 (1) Inter-segment 0 0 0 Sub-total North America 85 135 82 (5) Corporate and Group (31) (10) (29) (1) Inter-segment (12) 5 (4) Continuing Businesses 493 630 426 (4) Discontinued Businesses 0 0 0 Inter-segment 1 (4) 5 Total BLUESCOPE STEEL 494 626 431 (1) Inter-segment revenue reflects the elimination of internal sales between reporting segments. Inter-segment EBIT reflects an entry to eliminate profit-in-stock associated with inter-segment sales. (2) Excludes the company’s 50% share of North Star BlueScope Steel’s sales revenue of A$310M in 1H 2008 (A$373M in 1H 2007 and A$349M in 2H 2007). (3) Corporate and Group reflects logistics and corporate office activities. The increase in 1H 2008 EBIT primarily reflects profit on sale of the 19.9% shareholding in Smorgon Steel partly offset by the cost of an employee share ownership plan (similar costs were incurred during 2H 2007), costs associated with internal business restructures, reduced FX gains on net foreign currency denominated debt (in comparison to 1H 2007), including inter-company debt, and dividend income received on the 19.9% shareholding in Smorgon Steel during 1H 2007. (4) Reflects the discontinued Packaging Products, Lysaght Taiwan and Vistawall businesses. 1H 2008 EBIT relates to a Vistawall post completion sale price adjustment. (5) The decrease in 1H 2008 EBIT primarily reflects the cost of an employee share ownership plan (similar costs were incurred during 2H 2007), reduced FX gains on net foreign currency denominated debt (in comparison to 1H 2007), including inter-company debt, and dividend income received on the 19.9% shareholding in Smorgon Steel during 1H 2007.

BLUESCOPE STEEL AUSTRALIA

Hot Rolled Products Australia

This segment comprises: „ Port Kembla Steelworks, NSW, Australia (coke, iron, slab, plate and hot rolled coil production);

(i) Financial Performance

Table 7a: Financial Performance 1H 2008 and 1H 2007; $ millions Variance Financial Measure 1H 2008 1H 2007 $ % (1) Sales revenue 2,020 2,000 20 1 EBITDA 423 509 (86) (17) EBIT 354 438 (84) (19) (2) Underlying operational EBIT 354 414 (60) (14) Capital and investment expenditure 64 57 7 12 Net operating assets (pre tax) 1,830 1,829 1 0 (3) Return on net assets (pre tax) 39% 46%

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Table 7b: Financial Performance 1H 2008 vs. 2H 2007; $ millions 1H 2008 2H 2007 Variance Financial Measure (1) Sales revenue 2,020 1,919 101 EBITDA 423 390 33 EBIT 354 321 33 (2) Underlying operational EBIT 354 313 41 Capital and investment expenditure 64 79 (15) Net operating assets (pre tax) 1,830 1,782 48 (3) Return on net assets (pre tax) 39% 35% (1) 1H 2008 includes coke sales of 150,555 tonnes (1H 2007 82,308 tonnes and 2H 2007 165,210 tonnes). (2) 1H 2007 EBIT has been adjusted for domestic transfer pricing margins earned from the tinplate operations which have been closed and the reversal of redundancy provisions raised in prior periods. 2H 2007 has been adjusted for domestic transfer pricing margins earned from the tinplate operations which have been closed. (3) Return on net assets is defined as EBIT (annualised) / average monthly net operating assets.

(ii) Variance Analysis (1H 2008 vs. 1H 2007)

The $20M increase in sales revenue is primarily due to higher international slab and hot rolled coil prices, higher domestic plate and welded beam prices, higher coke prices and despatches and additional scrap sales. These were partly offset by a strengthening AUD:USD exchange rate compared to the previous comparative period.

The $60M decrease in underlying EBIT was largely due to: „ Improved spread – Higher slab and hot rolled coil prices and higher plate and welded beam prices in the domestic market Partly offset by – Higher USD iron ore, scrap and alloys purchase prices.

These were more than offset by: „ Higher freight and discretionary repairs and maintenance costs to support record production rates. „ Unfavourable movement in the AUD:USD relative to the previous comparative period. Average exchange rate for 1H 2008 was 0.868 compared to 0.764 in 1H 2007.

Unusual and non-recurring items in reported EBIT included: „ Domestic transfer pricing margins earned from the discontinued tinplate operations in the 1H 2007 results.

(iii) Operations Report

„ Iron & Slab

„ Ironmaking production of 2.56 million tonnes (Mt), was slightly lower than the 2.64Mt in 1H FY 2007 due to lower blast furnace availability (combination of planned and unplanned interruptions). No. 5 blast furnace (BF5) production rates are being maintained.

„ Slab production maintained at record levels, with 2.63Mt (vs 2.68Mt for 1H FY 2007).

„ As at 31 December 2007 BF5 achieved a campaign to date production of 40.05Mt (6,049 days). Previous campaign was 25.19Mt (4,452 days).

„ BF5 reline planning remains on schedule to commence in March 2009 and will take 100 days. BF5, which currently produces about 2.5 Mtpa of hot metal, was built in 1972 and the last reline took place in 1991. However, the estimated cost to complete has increased by some A$40m to A$370m. The company recently undertook a detailed review of the cost of sourcing the required work force and identified higher labour costs largely due to the unrelenting resources boom. Please refer to slide 46 in the presentation pack, “BlueScope’s Blueprint for the future – a focus on Execution Excellence”, dated 29 November 2007 for more details. (www.bluescopesteel.com under Presentations in Investor section).

ASX 2008 Half Year Earnings Report_FINAL Page: 12 Dated: 25/02/2008

„ Hot Strip Mill (HSM)

„ Hot rolled coil production of 1.371Mt (vs. 1.394Mt in 1H FY 2007). The shortfall was largely due to a 15 day scheduled maintenance outage in September 2007. Post outage production ramp up exceeded plan. „ Daily and monthly production records were achieved during the period.

„ Plate Mill

„ Plate production continued at record levels with 0.217Mt (vs. 0.215 for 1H FY 2007). The improved performance was largely due to increasing the rolling rate.

„ Sinter Plant Upgrade

„ The upgrade remains on schedule for April/May 2009 (approx. 35 days). The upgrade will result in sinter production increasing by 1.1mtpa. You can source additional details in the 29 November 2007 presentation pack referred to above.

„ Cogeneration Plant

„ The company continued its feasibility study into the construction of a cogeneration plant. The study will be concluded in the second half of calendar year 2008. The capital cost is likely to be in the range of $700 – 1,000M.

(iv) Markets

„ Domestic

„ The domestic plate market continued to be robust, driven by ongoing strength from several key plate market segments including mining, port infrastructure, wind towers and water.

„ Plate market share has increased from approx 80% in FY07 to 85% due in part to strong worldwide demand of plate for shipbuilding and growth in the number of domestic channel partners.

„ The Australian domestic pipe and tube market has undergone significant restructuring during the period with the formation of Australian Tube Mills (ATM) and the closure of two of the three pipe mills in Newcastle. Hot rolled coil sales remained strong during the period.

„ BlueScope and Orrcon won both the Bonaparte (NT) and QSN (Qld/SA/NSW) gas pipeline contracts during the period (34kt of hot rolled coil).

„ Export

„ Global slab and hot rolled coil prices firmed on the back of strong demand, tight supply and higher spot raw material and freight costs. This trend is expected to continue in the second half.

ASX 2008 Half Year Earnings Report_FINAL Page: 13 Dated: 25/02/2008 Coated and Building Products Australia

This segment comprises: „ Illawarra Coated Products at Port Kembla, NSW (Springhill Coated Products) noting the tin mill ceased operating in April 2007 and has been transferred to discontinued operations, however, the Cold Mill which provided cold rolled feed for tinplate continues to operate servicing export cold rolled markets; „ Western Port at Hastings, Victoria; „ Service Centres, with 7 sites across Australia; „ BlueScope Lysaght, with 41 operating sites throughout Australia; „ BlueScope Water; „ Western Sydney COLORBOND® Steel Centre; and „ BlueScope Distribution (previously Smorgon Distribution).

(i) Financial Performance BlueScope Distribution was acquired on 3 August 2007 and 1H 2008 includes this business for the period 3 August 2007 to 31 December 2007).

Table 8a: Financial Performance 1H 2008 and 1H 2007; $ millions Variance Financial Measure 1H 2008 1H 2007 $ %

Sales revenue 2,120 1,536 584 38 EBITDA 58 87 (29) (33) EBIT 6 49 (43) (88) (1) Underlying operational EBIT 50 38 12 32 Capital and investment expenditure 41 59 (18) (31) (2) Net operating assets (pre tax) 2,106 1,416 690 49 (3) Return on net assets (pre tax) 1% 7%

Table 8b: Financial Performance 1H 2008 vs. 2H 2007; $ millions 1H 2008 2H 2007 Variance Financial Measure

Sales revenue 2,120 1,649 471 EBITDA 58 31 27 EBIT 6 (8) 14 (1) Underlying operational EBIT 50 (5) 55 (2) Capital and investment expenditure 41 75 (34) (3) Net operating assets (pre tax) 2,106 1,486 620 (4) Return on net assets (pre tax) 1% (1%)

(1) 1H 2008 EBIT has been adjusted for impairment of Lysaght Home Improvements, write-off of Lysaght Movex application costs, integration costs associated with the acquisition of Smorgon Steel’s distribution business and redundancy costs relating to the announced closure of the CPL 1 paint line. 1H 2007 EBIT has been adjusted for stranded cost in Packaging Products partly offset by profit on the sale of property in New South Wales. 2H 2007 EBIT has been adjusted for pre-operating costs on the Western Sydney COLORBOND® Steel Centre and stranded cost in Packaging Products. (2) Capital and investment expenditure decrease is primarily due to the completion of the Western Sydney COLORBOND® Steel Centre project during 1H 2008. (3) Increase in net operating assets primarily reflects the acquisition of Smorgon Steel’s distribution business and the increase in net fixed assets. (4) Return on net assets is defined as EBIT (annualised in case of half year comparison)/average monthly net operating assets.

(ii) Variance Analysis (1H 2008 vs. 1H 2007)

The $584M increase in sales revenue is primarily due to the acquisition of Smorgon Steel’s distribution business on the 3rd August 2007, higher export volumes driven by improved production performances and higher export prices, in particular for galvanised and cold rolled coil, driven by higher global slab and hot

ASX 2008 Half Year Earnings Report_FINAL Page: 14 Dated: 25/02/2008 rolled coil prices. These were partly offset by a stronger AUD:USD exchange rate compared to the previous comparative period, lower volumes in the distribution sector driven by increased imports and an unfavourable domestic/export mix primarily due to clearance of high volumes of product imported during 2H 2007.

The $12M increase in underlying EBIT was largely due to: „ Improved spread, with higher export prices, particularly galvanised and cold rolled, and lower steel feed and coating metal costs. rd „ The acquisition of Smorgon Steel’s distribution business on the 3 August 2007.

These were partly offset by: „ An adverse mix change with a higher proportion of lower margin export sales mainly reflecting clearance of high volumes of product imported during 2H 2007. „ Stronger AUD:USD exchange rate compared to the previous comparative period. „ Higher unit costs associated with the ramp up of the Western Sydney COLORBOND® Steel Centre and ramp up of cold rolled export sales to replace domestic tinplate.

Unusual and non-recurring items in reported EBIT include: „ Impairment of Lysaght Home Improvements goodwill and computer software. „ Write off of capitalised Movex application costs driven by the acquisition of Smorgon Steel’s distribution business and the intention to migrate Lysaght Australia onto the ERP system utilised by distribution. „ Redundancy and restructuring costs driven by the announced closure of the CPL 1 paint line at the CRM Service Centre in Port Kembla during 1H 2008. „ Integration costs associated with the acquisition of Smorgon Steel’s distribution business and the one-off impact of recognising inter-company profit eliminations in inventory. „ Profit on sale of land in Erskine Park, New South Wales, in 1H 2007.

(iii) Operations Report

Western Port

„ Total production from the three metal coating lines was up 16kt to 391kt on 1H FY 2007, whilst total paint line production was up 9kt to 141kt. „ Metal coating line No.6 completed a major planned outage in December 2007, ie. a reline of the direct fired furnace. This will result in a marked improvement in production.

Illawarra Coated Products (Springhill Coated Products)

„ Half-year paint line production equalled the previous record of 101kt set in the December 2006 and June 2007 half years, largely due to a focus on manufacturing excellence to drive line speed gains.

„ Recorded the best ever half-year quality performance on the metal coating lines.

„ The packaging pickle line and cold mill successfully exported cold rolled full hard feed to BlueScope Steel's metal coating lines in Asia and external customers. The viability of this business continues to be monitored.

Service Centres

„ The Western Sydney COLORBOND® Steel Centre produced its first painted coil in August 2007 and is continuing to ramp up production „ The closure of the paint line at the CRM Service Centre in Port Kembla was announced to the workforce in August '07. Production was scaled down from 7 to 5 days in November and full closure of the line is expected in FY 2009.

ASX 2008 Half Year Earnings Report_FINAL Page: 15 Dated: 25/02/2008 BlueScope Distribution

„ Earnings were down on 1H FY 2007 largely due to margin compression as a result of higher import competition and the need to maintain share. „ By end December 2007, most of the import surplus has been absorbed and going into 2H FY 2008 we are expecting pricing to move upwards and availability of imports to reduce. „ The integration process into BlueScope is running smoothly and still expect to achieve synergies in the order of $15-20mpa from FY 2009.

BlueScope Lysaght

„ Margins have been negatively affected particularly in the commercial/industrial segment due to high level of imported steel products. „ Labour availability and turnover have increased operating costs. These increases have been partly offset by improvements in productivity and a focus on operating efficiencies.

BlueScope Water

„ Opened new production facilities in Queensland and Victoria to support the strong demand growth for rainwater harvesting solutions and water storage. Lead times for supply of tanks have been significantly reduced as a consequence. „ Pioneer Water Tanks is expanding production capacity to meet demand growth in Australian rural and commercial markets and strong growth in exports for water storage solutions. The new production facility is expected to be commissioned early in CY 2008.

Markets

„ Domestic

„ Building and Construction • Continued strong commercial/industrial construction activities nationally and residential activity in Queensland and Victoria. • Ongoing sales increase in key growth products such as TRUECORE® steel and COLORBOND® Permagard® steel.

„ Automotive and Manufacturing • Markets have been affected by a strong AUD and ongoing pressure on the Australian manufacturing base. • However, sales volumes have been maintained in line with recent half years.

BLUESCOPE STEEL NEW ZEALAND New Zealand and Pacific Steel Products

This segment comprises: „ New Zealand Steel; and „ Lysaght Pacific.

(i) Financial Performance

Table 9a: Financial Performance 1H 2008 and 1H 2007; $ millions Variance Financial Measure 1H 2008 1H 2007 $ %

Sales revenue 341 364 (23) (6) EBITDA 59 56 3 5 EBIT 44 43 1 2 (1) Underlying operational EBIT 36 43 (7) (16) Capital and investment expenditure 9 21 (12) (57) Net operating assets (pre tax) 401 370 31 8 (2) Return on net assets (pre tax) 21% 24%

ASX 2008 Half Year Earnings Report_FINAL Page: 16 Dated: 25/02/2008

Table 9b: Financial Performance 1H 2008 vs. 2H 2007; $ millions 1H 2008 2H 2007 Variance Financial Measure Sales revenue 341 365 (24) EBITDA 59 63 (4) EBIT 44 47 (3) (1) Underlying operational EBIT 36 47 (11) Capital and investment expenditure 9 19 (10) Net operating assets (pre tax) 401 431 (30) (2) Return on net assets (pre tax) 21% 25%

(1) 1H 2008 EBIT has been adjusted for redemption of B class preference shares in Manukau International Limited an investment vehicle of the New Zealand Steel Pension Fund, which had previously been impaired partly offset by impairment of Lysaght Fiji. Please refer to footnote (8) of Table 2b for additional information. (2) Return on net assets is defined as EBIT (annualised in case of half year comparisons) / average monthly net operating assets.

(ii) Variance Analysis (1H 2008 vs. 1H 2007)

The $23M decrease in sales revenue is primarily due to reduced volumes in the domestic market and a strengthening of the NZD:USD exchange rate relative to the prior comparative period, partly offset by increased export volumes.

The $7M decrease in underlying EBIT was largely due to: „ A lower spread due to increased coal costs more than offsetting the increase in sales prices. „ Unfavourable movement in NZD:USD exchange rates relative to 1H FY2007.

These were largely offset by: „ Improved scrap prices combined with higher contribution from vanadium due to strengthening world prices. Global vanadium prices averaged US$7.37/pound in 1H FY 2008 vs US$7.04/pound in 1H FY 2007. „ Improved product mix to higher margin products within both the domestic and export markets.

Unusual and non-recurring items in reported EBIT include: „ Redemption of B class preference shares in Manukau International Limited, an investment vehicle of the New Zealand Steel Pension Fund, which had previously been impaired. „ Impairment of Lysaght Fiji.

(iii) Operations Report

„ Slab production was up 6% on 1H FY 2007 (312kt vs. 293kt) as a result of strong ironmaking and stable slab casting operations. The iron sand beneficiator at Waikato North Head has continued to provide better quality feed resulting in reduced accretion problems in the kilns. Reliability of the slab caster has been improved significantly as a result of improved operating practices. „ Iron sands exports from Taharoa of 415kt were 9% below 1H FY 2007, largely due to bad weather delaying ship loading. „ Hot rolled coil production was largely in line with 1H FY 2007 (302kt vs. 306kt in 1H 2007). „ Metal coating production was down 10kt on 1H FY 2007 to 106kt, mainly due to the timing of scheduled maintenance. „ Paint line production was up 3% on 1H 2007 to 31.4kt (vs. 30.6kt in 1H FY 2007). „ A number of business improvement and optimisation projects continued, including: „ New Zealand Steel continues to review a number of optimisation projects, including increased vanadium slag recovery and iron making capability, extraction of titanium and ramp up of ironsands export. „ All operations areas are actively involved in a Business Improvement Process, with small focused teams working on process improvements, cost reductions, and sustainability initiatives. For example, automation of the melter tapping floor is proceeding which will improve working conditions and productivity. The project is expected to be completed by Dec 09.

ASX 2008 Half Year Earnings Report_FINAL Page: 17 Dated: 25/02/2008

(iv) Markets

„ Domestic market conditions were softer relative to 1H FY 2007, largely due to import competition, slowdown in residential demand and continued pressure on the manufacturing sector. „ Demand for our exported products remained very strong along with stronger product pricing.

BLUESCOPE STEEL ASIA

Coated and Building Products Asia

This segment comprises: „ Metal coating and paint line operations in Thailand, Indonesia, Malaysia, Vietnam and China; „ Butler PEB and Lysaght businesses across Asia (use product from these coating lines). „ Joint venture in India with Tata Steel Limited covering the development and construction of a metal coating line and paint line and existing Butler PEB and 3 Lysaght rollforming operations.

(i) Financial Performance (Refer to Attachment 2(a) for a breakdown of half year financial data by country and Attachment 2(b) for a breakdown of the half year China data by principal business)

Table 10a: Financial Performance 1H 2008 and 1H 2007; $ millions Variance Financial Measure 1H 2008 1H 2007 $ % Sales revenue 751 676 75 11 EBITDA (168) 56 (224) (400) EBIT (195) 31 (226) (729) Underlying operational EBIT(1) 30 39 (9) (23) Capital and investment expenditure(2) 12 43 (31) (72) Net operating assets (pre tax)(3) 981 1,273 (292) (23) Return on net assets (pre tax)(4) (34%) 5%

Table 10b: Financial Performance 1H 2008 vs. 2H FY2007; $ millions 1H 2008 2H 2007 Variance Financial Measure

Sales revenue 751 711 40 EBITDA (168) 41 (209)

EBIT (195) 11 (206) (1) Underlying operational EBIT 30 13 17 (2) Capital and investment expenditure 12 26 (14) (3) Net operating assets (pre tax) 981 1,180 (199) (4) Return on net assets (pre tax) (34%) 2% (1) 1H 2008 EBIT has been adjusted for impairment of China Metal Coating Line and Vietnam Metal Coating Line facilities. 1H 2007 and 2H 2007 EBIT has been adjusted for business development and pre-operating costs. (2) Capital expenditure decrease largely reflects lower expenditure in Vietnam, Thailand, China and India. (3) Decrease in net operating assets was largely due to impairment of China Metal Coating Line and Vietnam Metal Coating Line facilities. (4) Return on net assets is defined as EBIT (annualised in case of half year comparisons)/average monthly net operating assets.

(ii) Variance Analysis (1H 2008 vs. 1H 2007)

The $75M increase in sales revenue is primarily due to higher sales volumes across all regions together with higher domestic and export prices predominantly in Malaysia and Vietnam.

ASX 2008 Half Year Earnings Report_FINAL Page: 18 Dated: 25/02/2008 The $9M decrease in underlying EBIT is largely due to: „ Reduced margins with steel price increases being insufficient to cover the cost increases in steel feed predominantly in Thailand.

Partly offset by: „ Lower unit costs following successful commissioning and ramp-up of production volumes at the China coating line. „ Lower coating metal costs, predominantly lower zinc costs.

Unusual and non-recurring items in reported EBIT include: „ Impairment of China Metal Coating Line and Vietnam Metal Coating Line facilities due to lower than expected domestic volumes and margins in these businesses ($225m).

(iii) Operations and Market Report

Thailand

„ Current Operations „ Significant improvement in the cold mill yield from 95% in FY07 to 97% in 1H 2008. Improved uptime and throughput allowed the mill to provide almost all of the feed required by the metal coating lines. „ Metal coating line no.1, paint line and truss plants continued to operate strongly. „ Significant improvement in operations performance of metal coating line no. 2 with yields of around 96% 1H 2008. The line also exceeded nameplate capacity of 200 ktpa, by 10kt (annualised). „ Increased level of exported product to India and Europe. „ Launched a number of new products to improve market penetration

„ Markets

„ The general election occurred on 23 December 2007 and a coalition government was formed in January 2008. It is currently uncertain how quickly this government can stimulate domestic economy activity. Accordingly, we would not expect a material turn around in business activity until FY 2009.

Vietnam

„ Current Operations

„ Production volumes and yields were at very high levels across both the metal coating and paint lines in the first half. „ The metal coating line is currently running at capacity and the paint line has been ramped up to a three-shift operation. „ During the period, 17kt of product was despatched to BlueScope’s Indonesian operations to help meet the current strong demand. Supply will continue until the second Indonesian metal coating line comes on stream.

„ Markets

„ Vietnam continues to experience strong domestic and import competition. Despite this, the coated business has taken a leadership position in Foreign Direct Investment (FDI) projects and domestic residential markets through increasing their product range, channel expansion, quality and brand positioning. „ The buildings business has now commissioned the new PEB facility near Ho Chi Minh City and continues to focus on the growing FDI investment sector for steel solutions.

ASX 2008 Half Year Earnings Report_FINAL Page: 19 Dated: 25/02/2008 Indonesia

„ Current Operations

„ The current metal coating and paint lines are continuing to operate at full capacity, with additional coated steel products being imported from other BlueScope Steel sites in order to meet the current strong demand and seed the market for the metal coating expansion. „ Continued focus on plant uptime and yields on both the metal coating line and coil painting lines. „ Reduced cash flow during 1H FY 2008 was largely due to increase in inventory associated with the import-seeding program. „ Successfully and safely replaced the metal coating line pot (zinc/aluminium) which will improve productivity through higher uptime and yield. „ The Lysaght business continues to have strong sales.

„ Capital Growth Project Status

„ The second metal coating line project remains on schedule for completion towards the end of CY 2009.

„ Markets

„ Continued strong market demand in the industrial and commercial market segment and strong growth in the residential market segment, in particular metal tiles. „ Marketing initiatives are in place to support customers’ growth and BlueScope Steel Indonesia’s coating line expansion plan.

Malaysia

„ Current Operations

„ Domestic volumes are down by 12% compared to 1H FY 2007 largely due to a flat building and construction market and high levels of inventory. „ Exports volumes are up by about 40% vs. 1H FY 2007, with improved sales to South Africa. „ Metal coating line yield performance continued to improve and the paint line performance was excellent. „ Lysaght business continued to make a strong contribution largely driven by sales of higher margin products partially offset by lower volume.

„ Markets

„ The project pipeline is looking good and domestic volumes are expected to pick up in 2H after Chinese New Year.

China

„ Current Operations

Coated „ Improved sales into the domestic market, largely due to: „ increased sales force and direct marketing activities; and „ new product development to penetrate the manufacturing segment. „ Margins continue to remain under pressure, ie. spread between coil selling prices and cold rolled coil costs, as a result of strong competition. „ In addition competitors are making additional capacity available for the domestic market as increases in export VAT costs reduces the incentive to export.

Buildings and Lysaght Pre-engineered steel buildings „ Improved sales order intake and despatches in 1H FY 2008 vs. 1H FY 2007 as investment growth in the industrial building sector continues. „ Record sales months in October and November 2007, resulting in the highest level of deliveries since the Butler acquisition. „ Ramp up of the Butler Guangzhou business is on track, which includes replacement of the volumes transferred from the Central region to the South.

ASX 2008 Half Year Earnings Report_FINAL Page: 20 Dated: 25/02/2008 „ Stronger margin position due to tighter process controls around project management and strengthened financial discipline in the business

Lysaght „ Lower sales in the 1H FY 2008 vs. 1H FY 2007, largely due to reduction in public building activity as Olympic projects were completed during FY2007. „ Sales performance in power station and decking segments were particularly strong along with continued focus on revitalising the partial industrial solutions segment.

„ Markets „ Fixed asset investment in urban areas grew by 26.9% in CY2007 compared to 24.5% in CY2006. „ GDP growth estimated to be around 10.4% for CY2007 and 9.0% for CY 2008. „ The domestic downstream market continued to be very strong but still fragmented and competitive. Our earlier decision to separate the Lysaght and PEB businesses is proving to be successful. „ We are starting to see some consolidation in the PEB sector with a number of the smaller players being acquired. BlueScope Butler continued to maintain a very healthy market share of greater than 50% in the premium PEB sector.

India (in joint venture with Tata Steel (50:50) for all operations)

„ Current Operations

„ PEB facilities are operating at full capacity, and exceeding expectations, largely due to strong domestic demand and improved marketing strategy.

„ Capital growth project status

„ The metal coating line and paint line project (A$270m) (BSL’s 50% share A$135m), is being built at Jamshedpur. Progress on the project is: „ The equipment contract for the metal coating and paint lines has been awarded to Siemens VAI. „ Current focus continues to be on completing the engineering design for the construction works. „ The metal coated and paint lines are expected to be completed in CY 2010.

„ Markets

„ Record cement prices and long construction periods are driving a shift towards shorter lead time buildings, such as metal buildings. „ India has become the second largest destination for foreign direct investment resulting in increased opportunity. „ Strong foreign reserves are aiding the construction of infrastructure and the value of the rupee.

ASX 2008 Half Year Earnings Report_FINAL Page: 21 Dated: 25/02/2008 BLUESCOPE STEEL NORTH AMERICA

Hot Rolled Products North America

„ BlueScope Steel’s 50% interest in North Star BlueScope Steel, USA (hot rolled coil production). „ North American and European export trading activities. „ BlueScope Steel’s 47.5% interest in Castrip LLC, USA (thin strip casting technology), in joint venture with Nucor and IHI Ltd (Ishikawajima-Harima Heavy Industries).

(i) Financial Performance

Table 11a: Financial Performance 1H 2008 and 1H 2007; $ millions Variance Financial Measure 1H 2008 1H 2007 $ % Sales revenue(1) 266 288 (22) (8) EBITDA(2) 47 112 (65) (58) EBIT(2) 47 112 (65) (58) Operational EBIT 47 112 (65) (58) Capital and investment expenditure 1 0 1 - Net operating assets (pre tax) (3) 248 280 (32) (11) Return on net assets (pre tax)(4) 38% 83%

Table 11b: Financial Performance 1H 2008 vs. 2H 2007; $ millions 1H 2008 2H 2007 Variance Financial Measure (1) Sales revenue 266 278 (12) (2) EBITDA 47 68 (21) (2) EBIT 47 68 (21) Operational EBIT 47 68 (21) Capital and investment expenditure 1 1 0

Net operating assets (pre tax) 248 233 15 (4) Return on net assets (pre tax) 38% 512%

(1) Excludes the company’s 50% share of North Star BlueScope Steel’s sales revenue being A$310M in 1H 2008 (A$373M 1H 2007 and A$349M in 2H 2007). (2) Includes 50% share of net profit from North Star BlueScope Steel of A$38M in 1H 2008 (A$102M 1H 2007 and A$55M in 2H 2007). (3) Decrease in net operating assets primarily reflects lower investment in associate due to payment of dividends. (4) Return on net assets is defined as EBIT (annualised in case of half year comparison) /average monthly net operating assets.

(ii) Variance Analysis (1H 2008 vs. 1H 2007)

The $22M decrease in sales revenue is primarily due to a stronger AUD:USD exchange rate compared to the previous comparative period.

The $65M decrease in underlying EBIT was largely due to: „ Reduced spread following lower hot rolled coil prices combined with increases in the cost of scrap in North America. „ Unfavourable movement in the AUD:USD relative to the previous comparative period. „ Higher conversion costs at North Star BlueScope Steel driven by higher cost of electricity.

Partly offset by: „ Higher volumes through North Star BlueScope Steel.

ASX 2008 Half Year Earnings Report_FINAL Page: 22 Dated: 25/02/2008 (iii) Operations Report

„ North Star BlueScope Steel (BlueScope Steel has a 50% interest)

„ Raw steel production during 1H FY 2008 was 483kt (50% share) (vs 465kt in 1H FY 2007). Despatches of 470kt (50% share) (vs 451kt in 1H FY 2007). „ Voted No. 1 flat rolled steel supplier to the service centre segment in North America in the latest Jacobson Survey of steel customers for the sixth year in a row. „ BlueScope Steel received US$25 million in dividends from North Star BlueScope Steel during 1H FY 2008 (vs. US$50M in 1H FY 2007).

„ North American and European exporting trading

„ The Americas region remains a very important export market for BlueScope operations in Australia and Asia. In 1H FY 2008, 512kt were shipped (predominantly to the USA) with a product mix that included slab as well as finished products. Comparable shipments in 1H FY 2007 were 581kt. „ Shipments to Europe primarily hot rolled coil and coated steel exported from Australia, totalled 179kt for 1H FY 2008 (versus 137kt in 1H FY 2007). „ Long term freight contracts, arranged by BlueScope’s Logistics business, have minimized our exposure to the volatile freight market.

„ Castrip LLC

„ Castrip LLC is a joint venture that owns the Castrip revolutionary strip casting technology. It is owned 47.5% by BlueScope, 47.5% by Nucor ( the third largest Steelmaker in North America) and 5% by IHI (Japan). In addition, BlueScope has exclusive rights to use and licence the Castrip technology in Australia, New Zealand, Thailand, Vietnam, Malaysia and the Philippines. „ In recent months Nucor has made outstanding progress in improving the quality and throughput from their Castrip facility located at Crawfordsville, IN. The plant is now producing at a rate of over 300,000 tons per annum and Nucor is continuing to ramp up production as market conditions permit. „ A number of high strength Castrip products have now been commercialised and are finding favour in applications where Castrip's light gauge and unique formability give it a competitive advantage over conventionally produced Hot Rolled Coil. „ In mid-January 2008, Nucor announced its Crawfordsville facility had set a new record for sequence casting, ie. cast 24 ladles of steel continuously over a 38 hour period in late December. Total throughput for the record was 2,467 tons cast producing 2,387 tons of prime coils. „ The construction of Nucor's second Castrip facility in Blythesville, Arkansas is now well underway with startup on track for the fourth quarter of 2008. A number of improvements will be incorporated in this plant based upon the experience at Crawfordsville. „ Castrip LLC is working closely with several prospective customers who are interested in buying a Castrip licence.

(iv) Markets

„ North Star BlueScope Steel (BlueScope Steel has a 50% interest) „ Demand outlook remains a concern given weak vehicle sales as well as soft activity in the housing sector. „ Steel service centres have taken steps to align their inventory levels with the weaker demand they are experiencing, thus any improvement in demand will require an increase in order placement.

„ Production problems at some US producers have resulted in a tightening in the market, despite overall lacklustre demand. The fact the imports remain low by historical standards, has further reduced supply to the market.

„ North American and European exporting trading „ Overall market conditions in 1H 2008 were more favourable in Europe than in the U.S. „ The Brazilian domestic steel market is very buoyant resulting in lower steel exports.

ASX 2008 Half Year Earnings Report_FINAL Page: 23 Dated: 25/02/2008 Coated and Building Products North America

This segment comprises: „ Butler Buildings; „ HCI Steel Building Systems; and „ From February 2008 will include the IMSA Steel Corp assets acquired by BlueScope Steel.

(i) Financial Performance and Operating Report

Table 12a: Financial Performance 1H 2008 and 1H 2007; $ millions Variance Financial Measure 1H 2008 1H 2007(1) $ % Sales revenue 395 446 (51) (11) EBITDA 51 31 20 65 EBIT 43 23 20 87 Operational EBIT(2) 38 23 15 65 Capital and investment expenditure(3) 42 9 33 367 Net operating assets (pre tax)(4) 111 50 61 122 Return on net assets (pre tax) (5) 89% 54%

Table 12b: Financial Performance 1H 2008 vs. 2H 2007; $ millions 1H 2008 2H 2007(1) Variance Financial Measure Sales revenue 395 342 53 EBITDA 51 20 31 EBIT 43 14 29 (2) Operational EBIT 38 14 24 (3) Capital and investment expenditure 42 3 39 (4) Net operating assets (pre tax) 111 63 48 (5) Return on net assets (pre tax) 89% 47% (1) Excludes the Vistawall business financials. This asset was sold to an affiliate of Oldcastle Glass®, Inc on 29 June 2007. (2) 1H 2008 EBIT has been adjusted for write back of over-provided liabilities in relation to a UK pension fund within Butler Buildings. (3) Increase in capital and investment expenditure relates to the acquisition of HCI Steel Building Systems. (4) Increase in net operating assets mainly reflects defined superannuation actuarial adjustments and assets acquired as part of HCI Steel Building Systems. (5) Return on net assets is defined as EBIT (annualised in case of half year comparison) / average monthly net operating assets.

(ii) Variance Analysis (1H 2008 vs. 1H 2007)

The $51M decrease in sales revenue is primarily due to an unfavourable movement in the AUD:USD relative to the previous comparative period partly offset by improved domestic sales prices.

The $15M improvement in underlying EBIT was largely due to: „ Sales price increases exceeding raw material cost increases. „ Improved margins generated by improved plant efficiencies and increased output at the lower cost Mexico facility.

Partly offsetting these were: „ Unfavourable movement in the AUD:USD exchange rate.

Unusual and non-recurring items in reported EBIT include: „ Write back of over-provided liabilities in relation to a UK pension fund.

ASX 2008 Half Year Earnings Report_FINAL Page: 24 Dated: 25/02/2008 (iii) Operations Report

„ Butler Buildings

„ Total despatches in 1H FY2008 were up 3% to 109kt vs. 1H FY2007 106kt. „ Industry despatches as reported by the Metal Building Manufacturers Association decreased 3.1% (financial year through to December) over the same comparative period last year. „ Buildings market share increased 0.8% (financial year through to November). „ Backlog at $167m (vs $136m in prior year) due to higher order entry rates. Increased market share offset some softness in non-residential construction. „ F.W. Dodge has reported non-residential contract awards (square feet) are down 4.7% for calendar year 2007. „ The new engineering detailing system remains on schedule. Deployment of Phase I has been completed with several orders being successfully detailed and fabricated „ Acquired HCI Steel Building Systems of Arlington, Washington on 31 October 2007. This has strengthened the buildings footprint in the high-growth north western US and western Canada as well as the heavy industrial and self-storage markets. „ BUCON ended the 2008 half year with a record backlog of $123m ($44m in the prior year) benefiting from the government’s Army Transformation Program, Alliance Accounts and other industrial projects. BUCON is the “over-sized” building arm of the Butler business.

(iv) Markets „ Evidence of some softening in non-residential business towards the end of the half. This is expected to continue into the second half.

(v) Acquisition of IMSA Steel Corp. „ BlueScope Steel took effective control of IMSA Steel Corp on 1 February 2008 for a cost of approximately US$730 million. „ IMSA Steel Corp has four distinct businesses in the United States: 1. Varco Pruden Buildings Inc. (VP) – a leading North American manufacturer of PEBs for the non-residential market; 2. Steelscape Inc – a leading west coast producer of metal coated and painted steel coils; 3. Metl-Span LLC – a leading North American manufacturer of insulated steel panels for commercial, industrial and cold storage buildings; 4. ASC Profiles Inc – a leading North American manufacturer of building components. „ The acquisition is expected to be EPS neutral, pre-AIFRS adjustments, in FY 2008 but accretive pre- and post AIFRS adjustments from FY2009. The acquisition was funded by a 364 day bridge facility and BlueScope will also assume approx US$20m in under funded pension liabilities. For more information, please refer to the ASX announcement dated 20 December 2007, available under the Investor section of BlueScope’s website.

ASX 2008 Half Year Earnings Report_FINAL Page: 25 Dated: 25/02/2008 OTHER INFORMATION

Capital Management

„ Debt Facilities

During the period the company extended two of its bank bilateral 364 day working capital facilities of $50 million and $300 million. Both facilities are now scheduled to mature on 3 October 2008.

The $92 million 364-day tranche of the company’s $1,192 million syndicated bank debt facility was also extended until 17 December 2008.

The company will need to refinance the following major debt facilities during the next 12 months: „ $350 million working capital facilities by October 2008 „ $642 million loan note facilities by December 2008 „ US730 million IMSA acquisition bridging facility by February 2009 (with financial incentives to do so by September 2008).

„ Dividend reinvestment program (DRP)

A discount of 2.5% was applied to the reinvestment of the FY 2007 final dividend (paid in October 2007) resulting in 36% of shareholders participating in the DRP. Consequently, 5,552,248 shares were issued on 23 October 2007 at an issue price of $10.83.

The DRP discount of 2.5% will also be applied to reinvestment of the FY 2008 interim dividend and the company intends to fully underwrite the DRP in respect of this interim dividend.

„ Net debt

During the period, the Company’s borrowings increased by $207M to $1,745M resulting in a gearing ratio of 31.8% (net debt/(net debt plus equity). The operating cash flow of $600M (before interest and income tax paid) and proceeds on the sale of the 19.9% shareholding in Smorgon Steel ($447M) were primarily applied to reducing the level of outstanding debt, funding capital expenditure and investments ($154M), dividends ($128M), tax payments ($139M), interest payments ($67), the acquisition of Smorgon Steel’s distribution business ($730M) and the acquisition of HCI Steel Building Systems ($40M).

„ Bridge Facility for the acquisition of IMSA Steel Corp

The acquisition of IMSA Steel Corp for US$730 million will be funded by a 364-day bridge facility.

Safety, Environment & Health

„ Safety

„ Injury levels remain amongst world best levels. • Port Kembla Steelworks achieved a record 19 million hours work without a lost time injury; and • Tata BlueScope, Jamshedpur India, Coated Steel Project achieved 1 million hours worked lost time injury free and medical treated injury free. „ Numerous external safety recognition awards were received in this period, including: • All North America Butler plants were awarded Occupational Excellence Achievement awards by the National Safety Council; • Lysaght Khon Kaen, Thailand, received a Good Safety Performance Award from the Labour Department; • New Zealand Steel won the business category of the New Zealand Community Safety and Injury Prevention Awards; • BlueScope Steel Malaysia was awarded the Class 1 Award for the Manufacturing & Chemical Industries category by the Malaysian Society of Occupational Safety; and • BlueScope Steel was awarded two of the three categories of the National Australian Steel Institute Annual Safety Excellence Awards. Jason Lashmar, Operations Manager at BlueScope Lysaght’s Archerfield site, won the Individual OHS Excellence Award and Port Kembla Steelworks was recognised for the Site OHS Excellence Award.

ASX 2008 Half Year Earnings Report_FINAL Page: 26 Dated: 25/02/2008 „ Environment

„ The company continues to reduce its domestic fresh water consumption, for example: • In November 2007 the Port Kembla Steelworks recorded its lowest ever domestic fresh water consumption per tonne of steel make (2.01 kL/t) and the lowest month, in terms of average domestic fresh water consumption per day (11608 kL/day), in recent years. • At BlueScope’s Western Port site, a $21.5m project, funded by BlueScope Steel, South East Water and the Victorian Government, aims to deliver a 60 percent reduction in fresh water use and a 75 percent reduction in waste water discharge to BlueScope’s Western Port operations. The scheme involves pumping BlueScope Steel trade waste to South East Water’s Somers Treatment Plant for processing along with waste from local townships. Recycled water will be delivered back to the Western Port site via a new 13km pipeline with implementation expected in late 2009. „ Work commenced on developing a more consolidated approach to energy and greenhouse gas (GHG) reduction across BlueScope Steel Limited. Activities include identifying further opportunities to reduce energy consumption and GHG emissions and establishing reduction targets across all BlueScope Steel’s operations. „ BlueScope Steel, in partnership with other steel makers and the International Iron & Steel Institute (IISI), has continued to support worldwide GHG reduction efforts. Specifically, BlueScope Steel continues to be an active participant in the IISI CO2 Breakthrough Programme. „ In Australia, BlueScope is working with the CSIRO on two projects and sharing the results with other participants in the IISI program. One project is examining the use of biomass as a replacement for a proportion of the coal used in the iron making process. The second relates to the development of new technology for granulating blast furnace slag without water and recovering the waste heat. „ Work is continuing on the feasibility study into the construction of a new Cogeneration Plant at the Port Kembla Steelworks. The Cogeneration Plant would replace the existing inefficient Cogen facilities and also recover some by-product gasses that are presently flared. The project has the potential to cut GHG emissions on a net basis by approximately 800,000 tonnes per annum (by offsetting emissions from electricity generation elsewhere). „ Western Port was recognised by the Victorian EPA for its contribution to the Industry Greenhouse Program through the development of a best practice case study. The case study features the work done to reduce energy use and GHG emissions, particularly at the site’s No.2 Paint Line. „ The first annual report was submitted to the Australian Government’s Greenhouse Challenge Plus Programme, with BlueScope steel publicly reporting its GHG emissions (in Australia and globally). „ BlueScope Steel has compiled and submitted an Energy Efficiency and Opportunities assessment and reporting schedule to the Federal Department of Industry, Tourism and resources. The company has also commenced a number of specific site energy assessments and energy conservation initiatives. „ In accordance with BlueScope’s Environmental Management Standards, Environmental Management reviews were completed at 18 BlueScope sites during the first half of FY 08. These reviews are a key component of the Company’s Environmental Governance process to ensure that Environmental risks are managed appropriately and Environment improvement plans are in place across BlueScope’s operations. „ The Company’s environmental compliance register is currently being updated to include newly acquired sites. Prior to the acquisition of the Smorgon Steel Distribution business in August this year, implementation of the environmental compliance system was completed at all 103 operations.

Senior Management Changes

„ Paul O’Malley succeeded Kirby Adams as Managing Director and CEO of BlueScope Steel, effective from 1 November 2007. Paul was previously BlueScope’s Chief Financial Officer.

„ New senior leadership team was appointed: „ Noel Cornish – Chief Executive, Australian and New Zealand Steel Manufacturing Businesses „ Paul O’Keefe – Chief Executive, Australian Coated and Industrial Markets „ Mark Vassella – Chief Executive, Australian Distribution and Solutions „ Kathryn Fagg – President, Asia until April 2008 „ Brian Kruger – President, North America, Corporate Strategy and Innovation

ASX 2008 Half Year Earnings Report_FINAL Page: 27 Dated: 25/02/2008

„ Bob Moore was appointed President of China.

„ The company announced the appointment of Charlie Elias as Chief Financial Officer. He will take up his new role from late February 2008. He was previously CFO and Director for Linfox Logistics, one of Asia Pacific's largest supply chain and logistics companies.

„ Kathryn Fagg will leave the company in April this year to pursue other career interests. Rob Crawford, President Indonesia and Malaysia, and Peter Wilson, President Thailand and Vietnam, will report directly to the Managing Director and CEO during an international search for a replacement for Kathryn Fagg.

Interim Dividend Schedule

„ Ex-Dividend date – 28 February 2008 „ Record date – 5 March 2008 „ Payment date – 1 April 2008

For further information:

„ Media - Sandi Harwood, Manager - External Affairs Tel: +61 3 9666 4039 +61 (0)411 027 006

„ Investor Relations - John Knowles, Vice President Investor Relations Tel: +61 3 9666 4150 +61 (0)419 893 491

ASX 2008 Half Year Earnings Report_FINAL Page: 28 Dated: 25/02/2008 ATTACHMENT 1 PRODUCTION AND DESPATCH REPORT OOO Tonnes 1H 2008 1H 2007 Variance 2H 2007 AUSTRALIA Raw Steel Production(1) 2,632 2,684 (2%) 2,623 External Despatches Port Kembla Steelworks - Domestic(2) 466 538 (13%) 466 - Export 838 790 6% 782 Sub-total 1,304 1,328 (2%) 1,248 Coated & Building Products Australia(3) - Domestic(4) 1,021 786 30% 682 - Export(4) 265 215 23% 480 Sub-total 1,286 1,001 28% 1,162 Total Australian Despatches - Domestic(4) 1,487 1,324 12% 1,148 - Export(4) 1,103 1,005 10% 1,262 Total 2,590 2,329 11% 2,410 NEW ZEALAND / PACIFIC(5) Raw Steel Production 312 293 6% 300 External Despatches - Domestic 144 162 (11%) 140 - Export 132 121 9% 140 Total 276 283 (2%) 280 ASIA (Coated & Building Products) Raw Steel Production(6) - - - - External Despatches - Domestic 437 390 12% 388 - Export (7) 107 44 143% 112 Total 544 434 25% 500 NORTH AMERICA Raw Steel Production(8) 483 465 4% 492 External Despatches North Star BlueScope Steel - Domestic 470 451 4% 490 - Export - - - - Coated & Building Products North America - Domestic 99 99 0% 83 - Export 10 7 43% 8 Total 579 557 4% 581 DISCONTINUED BUSINESSES(9) Raw Steel Production - - - - External Despatches - Domestic - 91 (100%) 66 - Export - 46 (100%) 44 Total - 137 (100%) 110 GROUP Raw Steel Production 3,427 3,442 - 3,415 External Despatches - Domestic 2,637 2,517 5% 2,315 - Export 1,352 1,223 11% 1,566 Total 3,989 3,740 7% 3,881

ASX 2008 Half Year Earnings Report_FINAL Page: 29 Dated: 25/02/2008 Notes:

(1) Port Kembla Steelworks. (2) 1H 2008 does not include 87kt of despatches to BlueScope Distribution which would have previously been reported as external despatches. These are now external despatches from the BlueScope Distribution business within Coated and Building Products Australia. (3) The difference between the Coated and Building Products Australia numbers reported this time last year and this report is reflected further down the table under “Discontinued Businesses”. This principally reflects the closure of the tinplate business. (4) 1H 2008 includes 191kt of domestic despatches and 4kt of export despatches via BlueScope Distribution which were not sourced internally. (5) Includes New Zealand Steel and Pacific Island operations. (6) BlueScope Steel does not make steel in Asia. The Asian businesses typically source steel from local suppliers, many of whom source slab or HRC from BlueScope Steel’s Port Kembla or New Zealand operations. (7) Reflects despatches from the Asian country of production to external customers in other countries within Asia, the Pacific Islands, South Africa and Europe. (8) Reflects BlueScope Steel’s 50% share from North Star BlueScope Steel. (9) Reflects despatches from the buildings business. Does not include Vistawall’s aluminium despatches.

ASX 2008 Half Year Earnings Report_FINAL Page: 30 Dated: 25/02/2008

ATTACHMENT 2(a) COATED AND BUILDING PRODUCTS ASIA - COUNTRY FINANCIAL DETAILS

1H 2008 and 1H 2007; 2H 2007 tonnes $ millions $M Financial Measure 1H 2008 1H 2007 Change 2H 2007 External despatches (tonnes) - Thailand 176 128 48 177 - Indonesia 76 56 20 65 - Malaysia 79 77 2 79 - Vietnam 44 33 11 40 - China 167 138 29 138 - Other 2 2 0 1 - Total 544 434 110 500 Sales revenue ($M) - Thailand 222 202 20 242 - Indonesia 111 91 20 99 - Malaysia 129 119 10 118 - Vietnam 83 54 29 61 - China 234 210 24 198 - Other (28) 0 (28) (7) - Total 751 676 75 711 EBIT ($M) - Reported - Thailand 15 30 (15) 18 - Indonesia 7 9 (2) 8 - Malaysia 9 6 3 9 - Vietnam (33) (3) (30) (1) - China (185) (7) (178) (20) - Other (8) (4) (4) (3) - Total (195) 31 (226) 11 EBIT ($m) – Underlying Operational - Thailand 15 30 (15) 18 - Indonesia 7 9 (2) 8 - Malaysia 9 6 3 9 - Vietnam 2 (3) 5 (1) - China (2) (2) 0 (20) - Other (1) (1) 0 (3) - Total 30 39 (9) 11 Net operating assets (pre-tax) ($M) - Thailand 346 346 0 325 - Indonesia 110 113 (3) 95 - Malaysia 128 133 (5) 124 - Vietnam 110 164 (54) 152 - China 207 433 (226) 405 - Other 80 84 (4) 79 - Total 981 1,273 (292) 1,180

ASX 2008 Half Year Earnings Report_FINAL Page: 31 Dated: 25/02/2008 ATTACHMENT 2(b) COATED AND BUILDING PRODUCTS ASIA - COUNTRY FINANCIAL DETAILS – CONTINUED…

1H 2008 and 1H 2007; 2H 2007 tonnes $ millions $M Financial Measure 1H 2008 1H 2007 Change 2H 2007 External despatches (tonnes) - China Coated 38 17 21 43 - China Buildings 129 121 8 95 - Other / Eliminations 0 0 0 0 - Total 167 138 29 138 Sales revenue ($M) - China Coated 70 40 30 69 - China Buildings 196 187 9 150 - Other / Eliminations (32) (17) (15) (21) - Total 234 210 24 198 EBIT ($m) - Reported - China Coated (190) (13) (177) (14) - China Buildings 8 7 1 (4) - Other / Eliminations (3) (1) (2) (2) - Total (185) (7) (178) (20) EBIT ($m) – Underlying Operational - China Coated (7) (8) 1 (14) - China Buildings 8 7 1 (4) - Other / Eliminations (3) (1) (2) (2) - Total (2) (2) 0 (20)

ASX 2008 Half Year Earnings Report_FINAL Page: 32 Dated: 25/02/2008