BLUESCOPE INVESTOR DAY

Mark Vassella Managing Director & Chief Executive Officer Tania Archibald Chief Financial Officer 27 November 2019

BlueScope Limited. ASX Code: BSL

ABN: 16 000 011 058 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.

THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “MAY”, “WILL”, “SHOULD”, “EXPECT”, “INTEND”, “ANTICIPATE”, “ESTIMATE”, “CONTINUE”, “ASSUME” OR “FORECAST” OR THE NEGATIVE THEREOF OR COMPARABLE TERMINOLOGY. THESE FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE OUR ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS, OR INDUSTRY RESULTS, TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCES OR ACHIEVEMENTS, OR INDUSTRY RESULTS, EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.

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. AGENDA

Time Topic 10:45am BlueScope strategy update 11:30am Australian Steel Products deep-dive 1:00pm Lunch break 1:40pm North Star 2:00pm Building Products and 2:40pm Buildings North America 3:00pm Afternoon tea break 3:20pm and Pacific Steel 3:40pm Sustainability and financial framework 4:00pm Q&A 5:00pm Transfer to hotel 7:30pm Dinner with BlueScope management team BLUESCOPE STRATEGY UPDATE BLUESCOPE'S INVESTMENT PROPOSITION 5

Disciplined and advantaged steel building products company focussed on growing long term shareholder value

ASSETS & CAPABILITY CAPITAL DISCIPLINE RETURNS FOCUS

• Integrated and resilient Australian business • Strong balance sheet with target of around • Target ROIC > WACC through the cycle delivering returns across the cycle zero net debt (pre operating lease • Target at least 50% of free cash flow to • Iconic industrial brand position of capitalisation) shareholders COLORBOND® steel • Returns-focussed process with disciplined • Target EPS growth through the cycle • Global leader in coating and painting for competition for capital between investment Building and Construction Markets for long-term growth and returns to shareholders • Operate in the world’s two largest construction markets of China and US, and high growth markets in ASEAN and • One of the lowest cost brownfield expansions – North Star is one of the most profitable mini-mills in the US A SIGNIFICANT TRANSFORMATION 6

A step change in earnings quality, cash flows and balance sheet strength; well prepared for future growth

ROBUST BALANCE SHEET – NET CASH INCREASED RETURNS TO SHAREHOLDERS IMPROVED GEOGRAPHIC EARNINGS MIX

Net cash / (debt) ($M) Dividends paid and buy-backs ($M) Underlying EBITDA by region3 (%, $M)

Dividend 963 1,761 Strong working capital performance in 2H Buy-back 586 1% 693 7% NZ & Pacific FY2019, including around $150M benefit 76 from timing of year end cash flows 19% 8% Asia

362 40% 64 Up to 62 52% 281 510 411 Up to (232) Investment grade 190 40 802 credit rating 300 45% North America achieved 160 28% 34 150 (778) Jun-16 Jun-17 Jun-18 Jun-19 FY2016 FY2017 FY2018 FY2019 1H FY20 FY2016 FY2019

(1) FY2019 final dividend of 8 cps announced 19 August 2019, with payment date of 16 October 2019. (2) Increase of buy-back by up to $250M announced on 18 June 2019, as part of 1H FY2020 capital management program; $10M bought prior to 30 June 2019 and a further $160M bought through to 15 November 2019 (3) Total includes corporate costs & eliminations of $82M and $110M for FY2016 and FY2019 respectively, excluded from bar chart INDUSTRY UPDATE 7

BlueScope is well positioned in robust, developed economies, and in high growth regions across Asia

CHINA • Continued focus on overcapacity and environmental performance • Shift to EAF production, rapidly growing scrap pool • Better supply / demand balance – structurally reduced exports • Downstream growth in coated capacity and production

INDIA SOUTH EAST ASIA • Low levels of steel product • Large and growing consumption intensity population with increasing levels of wealth • Consolidation improving industry structure • Significant upside, with low levels of steel product • Recent economic growth slowing, consumption intensity UNITED STATES from relatively high levels • Increased volumes of • Continued shift to EAF production – US Steel Chinese coated imports have acquisition of Big River Steel stake put pressure on margins • Favourable regulatory and trade environment • Near-term macroeconomic • Long term economic indicators positive headwinds persist • High cost capacity idled / mothballed

AUSTRALIA / NEW ZEALAND • Robust economies growing faster than most developed nations • Construction sectors are strong; demand for detached housing and alterations and additions remain robust, solid pipeline of infrastructure projects WHAT AND WHERE 8

BlueScope operates a range of quality assets across large and growing markets

STEELMAKING CHINA (FLAT PRODUCTS)

LONG PRODUCTS INDIA (REBAR, WIRE)

METAL COATING SOUTH EAST ASIA AND PAINTING

STEEL BUILDING MATERIALS AND UNITED STATES COMPONENTS

STEEL BUILDINGS AUSTRALIA AND SYSTEMS NEW ZEALAND OUR BOND, STRATEGY, FINANCIAL FRAMEWORK & APPROACH TO 9 SUSTAINABILITY GUIDE WHAT WE AIM TO ACHIEVE AND HOW WE DO IT

OUR CUSTOMERS ARE OUR PARTNERS

OUR PEOPLE ARE OUR STRENGTH

OUR SHAREHOLDERS ARE OUR FOUNDATIONS

OUR COMMUNITIES ARE OUR HOMES EVOLVING OUR STRATEGY 10

• Digital technology: delivering the next wave of customer, growth and productivity improvements through technology TRANSFORM • Carbon and climate change: playing our part in the challenge; producing highly recyclable products, and actively lowering emissions intensity

• Australian Steel Products: integrated and resilient business that delivers returns across the cycle • North Star: expanding the US's leading mini-mill OPTIMISE • Building Products Asia and North America: outstanding suite of assets in high-growth regions AND GROW • Buildings North America: unlocking upside potential • New Zealand and Pacific Steel: history of profitability; reviewing the way forward

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation • Digital Technology TRANSFORM • Carbon and Climate Change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation DIGITALLY TRANSFORMING OUR BUSINESS 12

Delivering the next wave of customer, growth and productivity improvements through technology

A clear framework for digital transformation A range of technology solutions available to deliver value

Provide • Providing the overall strategy and leadership direction for digital for BlueScope and strategy • Roll-out and engage organisation Data analytics Automation • Delivering productivity and quality Machine learning Autonomous robotics Deliver and improvements through new technologies Simulation Robotic process automation support lighthouse use cases • Demonstrating value and scalability across the business

• Supporting the business to embed Software solutions Data and platforms Strengthen and scale digital solutions foundations Virtual and augmented reality Sensors and IOT • Investing in new digital capabilities Building information modelling Connectivity and mobile CARBON AND CLIMATE CHANGE – THE CHALLENGE 13

Steel demand is growing; demand for virgin steel will increase; low-carbon solutions remain long way off

OUR ACTION WE THE CHALLENGE COMMITMENT ARE TAKING

• Continued global growth in steel demand is expected

• Recycling plays a big role but virgin steel will continue to be required to meet demand – Blast furnace production using metallurgical coal

• Low-carbon steel production research is being pursued; commercial solutions remain a long way away – Even if proven on a commercial scale, these technologies require significant transformation in electricity sector CARBON AND CLIMATE CHANGE – OUR COMMITMENT 14

We will work diligently to seek to improve the efficiency of our operations and reduce emissions

THE ACTION WE OUR COMMITMENT CHALLENGE ARE TAKING

• BlueScope strongly advocates a fair and equitable approach to addressing climate change to deliver real reductions in global GHG emissions

• We support Paris and the Nationally Determined Contributions of the countries where we operate

• We acknowledge that steelmaking generates greenhouse gas emissions and we will work diligently to seek to improve the efficiency of our operations and reduce those emissions

• We will report on our opportunities, risks and progress in a recognised way – eg Task Force on Climate-related Financial Disclosures (TCFD) CARBON AND CLIMATE CHANGE – ACTION 15

We will work diligently to seek to improve the efficiency of our operations and reduce emissions

THE OUR ACTION WE ARE TAKING CHALLENGE COMMITMENT

BlueScope will play a proactive role in reducing the carbon emissions from the manufacture and use of its products • Make the case for local, sustainable steel in our communities • Innovate and collaborate to create carbon-efficient products and solutions • Focus on how to meaningfully reduce our carbon intensity in time frames aligned with key investment decisions • Regularly report on our progress, engage effectively with key stakeholders and actively keep abreast of external developments CARBON AND CLIMATE CHANGE – ACTION 16

Focussing on how to meaningfully reduce our carbon intensity in time frames aligned with key investment decisions

Achieve the 1% yoy • Refine our comprehensive pipeline of projects and abatement cost curves carbon intensity • Execute program of work at site level

reduction target by 2030 • Deliver low emissions asset in US Current

Horizon Horizon 1 • Continue to stimulate localised initiatives (all non-steelmaking sites) Empower local sites to • For example: plant improvements, energy efficiency or local renewable take local action energy (PPA)

Prepare for major • Prepare for Port Kembla blast furnace reline decision in future years

investment decisions • Prepare for New Zealand steelmaking options

Emerging Horizon Horizon 2

• BlueScope recognises that steelmaking in 2050 needs to be centred

term Monitor breakthrough around new breakthrough technology -

technology – Participate in selective R&D programs and follow fast Long Horizon Horizon 3 – Monitoring emerging developments relating to hydrogen CARBON AND CLIMATE CHANGE – ACTION 17

Regularly report on our progress, engage effectively with key stakeholders and actively keep abreast of external developments

Advocate global cooperation • Policy advocate – Australia and New Zealand focus Sustainable Buildings Research Centre on climate change University of , Innovation Campus

Monitor key climate risk • Clear internal governance and reporting frameworks uncertainties

Set clear targets and report • Regular internal and external reporting – eg TCFD regularly • Emission intensity targets

Engage effectively with key • Be readily available to key stakeholders stakeholders • Drive transparency

Deliver resilient operations • Evaluate potential physical risks and supply chain disruptions and supply chain • Raw materials due diligence • Digital technology TRANSFORM • Carbon and climate change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation AUSTRALIAN STEEL PRODUCTS DEEP DIVE

Australian Steel Products segment overview

A wide range of low capital growth opportunities in intermaterial applications

Highly competitive cost base; technology unlocking next wave of improvements

Integrated and resilient Australian business delivering returns across the cycle

Strong track record on emissions; committed to ongoing improvement OVERVIEW OF AUSTRALIAN STEEL PRODUCTS (ASP) 20

Integrated producer of premium branded flat steel products for the domestic Australian market

Key facts Sites and locations • Produces hot rolled coil and plate through to branded, value-added

metallic coated and painted products Majority of iron ore is sourced from the Pilbara • Established steelmaking asset at Port Kembla, with advantageous position close to high quality raw materials and port facilities • Manufactures ~3.1 million tonnes per annum of flat steel products. Majority of coking coal is 2.0 – 2.2 million tonnes sold domestically, with the balance sold on sourced from the the export market – Approximately half of the exported volume goes to downstream affiliates on the US West Coast and in South East Asia Wollongong

• A range of iconic brands used across building market segments • Extensive channels to market, including: Coated & Industrial Products Australia (8 sites)

– Lysaght and Fielders (rollformed steel building materials) Lysaght and Fielders (32 sites)

– BlueScope Flat Steel Products (coil and plate distribution) BlueScope Flat Steel Products (16 sites) Port Kembla (28 sites) – Orrcon Steel (pipe and tube manufacture and distribution) Steelworks Located on a deep water port with direct access to key markets ASP BUSINESS STRUCTURE AND BRANDS 21

Australian Steel Products (ASP)

Coated & Industrial BlueScope BlueScope Flat Orrcon Steel Products Australia Building Components Steel Products ASP STRATEGY AND BEHAVIOURS 22

Focussing on both growth and cost, enabled by technology and behaviours

ASP strategic focus areas How we behave is in our DNA

DELIVER WE DO WHAT WE SAY We put our hands up and get things done. We love the

challenge of delivering value to our customers and to

DRIVE

GROW GROW OPTIMISE OPTIMISE

MARKETS BlueScope

SUPERIOR

CUSTOMER

PROFITABLY EXPERIENCE

FIXED FIXED COSTS

COMPETITIVE COMPETITIVE LOWEST LOWEST COST

SUPPLY SUPPLY CHAIN D MANUFACTURING

ENABLING NIMBLE TECHNOLOGY WE SEIZE OPPORTUNITIES We are agile, act with urgency and take calculated N risks to deliver innovative solutions ALIGNED GROWTH COST WE HEAD IN THE SAME DIRECTION INITIATIVES Growth Costs INITIATIVES We work inclusively together as one team DNA toward mutual goals. We ensure everyone is A clear on where we are headed A PORTFOLIO OF PREMIUM BRANDS 23

An iconic industrial brand position with COLORBOND® steel, extending across other branded products

COLORBOND® Matt steel campaign TRUECORE® steel campaign Recent marketing campaigns

50 Years of COLORBOND® steel ad campaign

• Building on the iconic brand, COLORBOND® • Features brand ambassador Tom Williams, a Matt steel is the result of a strong focus on recognised Australian media personality, differentiation and innovation carpenter and home improvement show host Build On • “The Subtle Art of Standing Out” campaign • The “Inner Strength” campaign with Lysaght® ad with photographer Murray Fredricks targets ambassador Tom Williams focuses on the campaign end users and decision makers, such as product and system benefits for both the architects, builders and specifiers homeowner and builder DOMESTIC MARKET EXPOSURE 24

Predominantly exposed to the building and construction market, in both residential and non-residential sub-sectors

FY2019 external domestic despatch volumes Alterations and additions (A&A) A&A building approvals and house prices1 • Indicatively consume around half of 9.0 200 ASP’s dwelling volume 8.5 175 Agri & mining Transport • Strong and lightweight products 8.0 150 255kt well suited to this application 104kt Manufacturing (11%) 7.5 125 (5%) • Long term growth supported by Sydney Price Index [RHS] 266kt (12%) structurally higher house prices 7.0 Price Index [RHS] 100 • Robust level of activity, also A&A Rolling 12 mths (A$bn) [LHS] 6.5 75 supported by sound labour market 2013 2014 2015 2016 2017 2018 2019 Engineering 209kt (9%) 732kt (33%) Dwelling New detached dwellings Dwelling approvals: rolling 12 months2 (‘000) • 150 Non-A&A exposure is mainly to new Detached detached dwellings Houses Total • Approvals consistently sit within an 100 686kt construction: (30%) annualised range of 90k – 130k 1,627kt (72%) • Recent contraction coming off a high 50 Other Non-dwelling base; predominantly in multi-res (multi-res) • Orderly pullback from a high base, 0 not a major correction 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

(1) A&A: Alterations & Additions, Source: ABS series 6416, table 2; original data; 2011-12=100; data to Jun19 Qtr, ABS series 8731, table 38; seasonally adjusted; current $; data to Sep 19 (2) Source: ABS series 8731, table 11; original data; data to Sep 19 Qtr AUSTRALIAN STEEL PRODUCTS DEEP DIVE

Australian Steel Products segment overview

A wide range of low capital growth opportunities in intermaterial applications

Highly competitive cost base; technology unlocking next wave of improvements

Integrated and resilient Australian business delivering returns across the cycle

Strong track record on emissions; committed to ongoing improvement TRUECORE® STEEL 26

Continues to be an exciting growth opportunity, volumes continue to grow

End-user focus Through-channel focus • Sales of TRUECORE® steel continues to increase on the back of robust • Distributor and fabricator numbers are growing, with end-user demand demand and intermaterial growth increasing and trade acceptance continuing • Continuing investment in consumer branding and promotion, across media • Builder acceptance continues, with major project builders across the and in major programs such as The Block country increasing use of TRUECORE® steel framing • Partnering with builders to promote the benefits through the channel, • Trade acceptance has been supported by training programs delivered via including co-branding and collateral support registered training organisations and on-site support programs

1 Benefits of building with TRUECORE® sales volumes TRUECORE® +11% p.a. ✓ Straight and true Softer domestic ✓ 100% termite proof sales in FY19 ✓ Will not catch fire ✓ Efficient and fast to install ✓ Greater design versatility ✓ Backed by BlueScope FY13 FY14 FY15 FY16 FY17 FY18 FY19

(1) Domestic prime sales volume ex-mill COLORBOND® MATT STEEL 27

This on trend finish continues to grow in both commercial and residential applications CLADDING AND FAÇADE APPLICATIONS 28

An exciting new growth area, with significant upside potential in commercial and residential applications

Commercial and multi-residential façades Detached residential façades • New AZURE® range of façade products provide a new alternative to • COLORBOND® steel is experiencing an increase in demand for use in commercial and multi-residential cladding options residential cladding, on the back of the new COLORBOND® Matt steel • The aesthetic and durable properties of COLORBOND® steel, along with colours and a range of new profile options from the rollforming channel, low combustibility make this an attractive alternative including the new LYSAGHT® ZENITH® range of profiles TRU-SPEC® COIL PLATE 29

A superior quality product delivering improved volumes; investing in capacity to support further growth

Improved volumes New coil plate line • In 2014, BlueScope invested in a 113kt coil plate processing line in Port • Investing in a new 160kt stretch levelling coil plate line at Port Kembla, in Kembla to enable production of a coil plate product (branded TRU-SPEC®) addition to the 113kt line installed in 2014, in order to meet the increased that provided enhanced end-user benefits to the alternative products demand levels available • Increased capacity provides the opportunity to further grow TRU-SPEC® • Increased demand for the new TRU-SPEC® plate has in recent years steel sales, as well as reducing complexity and cost in the supply chain, exceeded expectations, and BlueScope’s capacity to meet this demand improve the service offer and strengthen our delivery performance

1 Benefits of selecting Coil plate sales volumes TRU-SPEC® +12% p.a. ✓ Consistent high quality ✓ Excellent flatness Softer domestic ✓ Excellent surface quality sales in FY19 ✓ Improved cutting and processing efficiency ✓ Backed by BlueScope FY13 FY14 FY15 FY16 FY17 FY18 FY19

(1) Domestic prime sales volume ex-mill AUSTRALIAN STEEL PRODUCTS DEEP DIVE

Australian Steel Products segment overview

A wide range of low capital growth opportunities in intermaterial applications

Highly competitive cost base; technology unlocking next wave of improvements

Integrated and resilient Australian business delivering returns across the cycle

Strong track record on emissions; committed to ongoing improvement A SIGNIFICANT TRANSFORMATION IN PERFORMANCE 31

Robust earnings and cash flows through the cycle – a fundamentally different business to FY2015

Earnings transformation ASP underlying EBIT ($M) and Asian steel spread1 (A$/t) 456 • A fundamental transformation of the ASP 500 425 436 business from FY2015 to FY2017 achieved 400 345 350 Asian a $300M structural cost reduction 292 276 297 steel spread • Ongoing focus to maintain competitive 300 cost position 200 326 319 ASP 243 262 Composition of cost reduction 100 217 216 underlying EBIT R&M and 66 84 Overheads etc 0 manufacturing 1H FY15 2H FY15 1H FY17 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 15% 20% ASP underlying EBIT ROIC (%) 30% 26.6% 24.6% Production 22.4% 22.7% 25% 18.8% 16.6% ASP efficiencies/ 20% 20% volume Labour underlying 10% 5.1% 6.5% ROIC 20% 0% Raw materials 1H FY15 2H FY15 1H FY17 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19

(1) Spread is calculated on a spot basis (i.e. unlagged) as the East Asia HRC price less cost of 1.5t iron ore fines and 0.71t hard coking coal, converted to A$. Sourced from SBB, CRU, Platts, TSI, Reserve Bank of Australia, BlueScope Steel calculations. EBIT sensitivities to spread can be found on page 84 of the FY2019 Results Investor Presentation, available at www.bluescope.com/investors MANAGING THE COST BASE AND OFFSETTING ESCALATION 32

Overarching focus to retain cost-competitiveness; tech to deliver next wave of cost improvement

East Asian steel spread and steelmaking break-even (US$/t) Recent impacts on cost and efficiencies As a principle, the steelmaking business must be internationally cost competitive • $50M impact of higher energy costs – now stabilised, but still high 1 and cash breakeven at the bottom of the cycle • Freight and general cost escalation 800 • Production inefficiencies – within a normal range, but a step down from 2017 700 • Recent EA, approved in June, will increase labour costs over next three years 600 • Investing (opex) in future performance and growth, e.g. digital opportunities 500 Clear goal is to maintain cost-competitiveness through the cycle 400 • 300 Whilst costs may show escalation within half and even full year periods, our focus is to offset escalation over the medium term 200 • Overarching focus is to retain the benefit of the major cost reduction 100 Port Kembla steelmaking approximate through a highly disciplined approach to cost management and productivity breakeven spread range1 0 – Cost reductions and productivity improvements increasingly driven through 2004 2006 2008 2010 2012 2014 2016 2018 automation and robotics

(1) EBITDA less stay-in-business capital expenditure AUTOMATION AND ROBOTICS 33

Robotics and automation opportunities unlocking the next wave of productivity improvements and cost savings

Automated slab yard cranes Automated BOS Limekiln Automated coil fields • Cost reductions and productivity • Retrofitting existing slab • Automation of the Limekiln, • Automation of coil storage, improvements increasingly handling cranes with which provides Burnt Lime and handling and processing for automation hardware and Burnt Dolomite for Basic sheetmetal work and driven through automation and software Oxygen Steelmaking rollforming applications robotics • Upgrade to drive important • Reduced labour requirements • Eliminating need for forklifts, productivity and cost efficiency and improved efficiency, reducing wastage, costs and • Numerous opportunities for gains through reduced resulting in lower costs and safety risks and improving line robotics given scale and downtime and increased increased capacity, creating efficiency, accuracy and complexity of operations operational accuracy opportunity to on-sell materials throughput

• Provides the foundation for advanced automation through machine learning and artificial intelligence LEVERAGING NEW TECHNOLOGY 34

Machine learning offers opportunity to further improve already advanced manufacturing processes

Metal coating line machine learning Springhill digital twin • Piloted a machine learning model to improve the coating mass • Developed a simulation model to increase throughput by control system of one of the metal coating lines at Springhill optimising production flow decisions at the Springhill plant • Model analyses performance to recommend operating • Enables the identification of where bottlenecks may emerge parameters to better control coating mass application and assists in design of optimal, capital-efficient interventions • The model allows for better control and consistency in coating • Benefits include increased throughput through the plant, and metal application, and avoids excess coating application reduced capital costs AUSTRALIAN STEEL PRODUCTS DEEP DIVE

Australian Steel Products segment overview

A wide range of low capital growth opportunities in intermaterial applications

Highly competitive cost base; technology unlocking next wave of improvements

Integrated and resilient Australian business delivering returns across the cycle

Strong track record on emissions; committed to ongoing improvement THE VALUE OF VERTICAL INTEGRATION 36

Significant value created through integration of steelmaking assets with downstream manufacturing and channels to market

• Clear objective of optimising profitability across the entirety of Port Kembla operations SYNERGIES • Units fully integrated across the value chain to drive productivity and optimise product flows in response to market needs BETWEEN • Working capital, supply chain and freight all optimised STEELMAKING AND COATED • Focussed customer service – single point of contact • Shared overhead costs

MODERATION • Earnings volatility moderated by ability to capture margin in: OF EARNINGS – steelmaking, at times of high HRC prices, or VOLATILITY – coating and painting, at times of low HRC prices, given the more stable nature of COLORBOND® earnings

VALUE OF • Delivering pull-through demand for both steelmaking and coating and painting CHANNEL • PARTICIPATION Customer intimacy facilitates knowledge of regional and local requirements and ability to respond PORT KEMBLA STEELMAKING REMAINS A VALUABLE CONTRIBUTOR TO ASP 37

Reset of cost base post 2015 has created a valuable steelmaking business

East Asian benchmark and ASP steelmaking indicative cash breakeven spreads (US$/t) 400 Reset of cost base post 2015 (by ~A$100/t) to ensure cash breakeven at bottom of cycle 350 conditions provides valuable upside for Port Kembla steelworks East Asian spread (lagged) 300

250 Indicative 200 steelmaking cash breakeven spread 150

100 East Asian spread less 50 Indicative steelmaking cash breakeven spread 0 (i.e. value of spread which can FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 indicatively go direct to margin) East Asian Spread above indicative steelmaking cash breakeven spread EXTENSIVE CHANNELS TO MARKET 38

Extensive channels to market, delivering pull-through demand and providing end-market insights

Building Components Distribution Pipe and Tube • BlueScope Building Components manufactures • BlueScope Flat Steel Products services a wide • Orrcon Steel is a leading Australian distributor and markets an extensive range of rollformed range of manufacturers, fabricators, resellers and manufacturer of steel, tube and pipe, steel products for the building industry and engineers serving a diverse customer base – Specific offerings into the residential, – Services building and construction, – Supplying steel fabricators, furniture and commercial, structural, home improvement, transport, manufacturing, agriculture, trailer body manufacturers, housing and distributor and shed segments mining, and oil and gas segments construction companies, pipeline and infrastructure engineering firms • Delivers customer value through leading brands, • Offers break-bulk and processing services such innovative and quality products and construction as slitting, shearing and recoiling • Extensive product range covers varying types of solutions, and excellent service • Operates over 15 sites Australia-wide structural tubular steel, hot rolled structural • Operates over 40 sites Australia-wide steel and a range of fencing, roofing and building accessories • Operates over 30 sites Australia-wide AUSTRALIAN STEEL PRODUCTS DEEP DIVE

Australian Steel Products segment overview

A wide range of low capital growth opportunities in intermaterial applications

Highly competitive cost base; technology unlocking next wave of improvements

Integrated and resilient Australian business delivering returns across the cycle

Strong track record on emissions; committed to ongoing improvement SIGNIFICANT PROGRESS HAS BEEN MADE ON REDUCING GHG EMISSIONS 40

ASP has significantly reduced emissions since 2005; committed to achieving 1% YoY target

Examples of carbon reduction activities A range of advanced sustainable building products

INCREASING Using recovered output gas to generate electricity at Port COLORBOND® steel with Thermatech® technology SELF- Kembla, reducing electricity grid demand by 7%, equivalent to Can reduce cooling energy cost by up to 20% compared GENERATION 46,000t CO2-e p.a. with other materials of similar colour with low solar reflectance INCENTIVISING Power Purchasing Agreement, underpinning EMISSIONS a new 500,000 panel solar farm, contributing to the LCA Environmental Impact Reduction Next Generation ZINCALUME® steel AM125 vs AZ150 ZINCALUME® steel REDUCTION decarbonisation of the electricity grid by ~300,000t CO2-e p.a.

with Activate® Technology .

Fossil Fossil

Metal Metal

Water

Human

change

Ecotox

toxicity

Climate Climate

Freshwtr

depletion depletion BLAST BlueScope reduced its absolute emissions in Australia by Reduced environmental footprint (by depletion FURNACE around 40 per cent, when it closed a blast furnace in 2011, between 17 and 20 per cent) across all 18 17% 19% 19% 20% 17% 18% To see functional unit and more results across all 18 environmental CLOSURE effectively removed surplus export steelmaking capacity Life Cycle Assessment categories impact categories assessed visit nextgenzincalume.com.au

COLORBOND® Coolmax® steel Reflects over 70% of the sun's heat, reducing roofing temperatures and keeping the building cooler compared with conventional roofing materials Increasing Self-Generation Finley Solar Farm PPA ASP CARBON PLAN 41

A range of opportunities under investigation

• Further optimisation of raw • Pellet and lump ore • Scrap optimisation, coke and • Further power self-generation 2020 material grade mix opportunities PCI adjustments opportunities

Low-capital opportunities: Capital projects: Engagement and advocacy: Breakthrough technologies: • Further optimisation of raw • Explore small-scale Biochar • CO2CRC engagement (carbon • Watching brief material grade mix • Capture and utilise waste heat capture utilisation and storage 2020 to • Step change in scrap utilisation and energy options) 2030 • Grid electricity emissions intensity trajectory • Smaller-scale efficiency projects AUSTRALIAN STEEL PRODUCTS SUMMARY

→ An iconic industrial brand position with COLORBOND® steel

→ Maintaining extensive channels to market

→ Relative geographic isolation provides a freight advantage

→ A wide range of low capital growth opportunities in intermaterial applications

→ Highly competitive cost base; technology unlocking next wave of improvements

→ Integrated and resilient Australian business delivering returns across the cycle

→ Strong track record on emissions; committed to ongoing improvement • Digital technology TRANSFORM • Carbon and climate change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation NORTH STAR OVERVIEW 44

Industry leading hot rolled coil producer; competitive advantage in safety, quality, service and delivery

Facility overview A key part of the BlueScope portfolio • Industry leading hot rolled coil producer, established in 1995 as a 50-50 JV between BlueScope and • The US is an attractive market for Cargill. BlueScope acquired Cargill’s 50% interest for US$720M in October 2015 BlueScope • Original construction capital cost was US$500M; since then company has invested over US$250M in • North Star is an advantaged, “best-in-class” upgrades and improvements asset, built for expansion • Annual HRC capacity of 2.1mt; expansion underway to increase by 850kt, with 500kt potential upside – strong cash generator through the cycle, and core to BlueScope’s strategy Ladle furnace Twin 190 ton electric arc furnaces • Highly engaged and motivated workforce; 102mm thickness Scrap and pig iron storage single strand experienced management team continuous caster Outside coil storage • The expansion is consistent with longer- Tunnel furnace term transition to highly efficient EAF suppliers Tandem roughing mill with vertical edger – expected to deliver compelling returns on historical spreads, and provide

Finishing mill Laminar cooling table further scope for debottlenecking Inside coil storage and two down coilers AN ADVANTAGED ‘BEST-IN-CLASS’ ASSET 45

A geographically advantaged asset, providing leading customer service

Located close to customers… … and close to scrap suppliers Outstanding customer service • North Star ranked number one in overall customer satisfaction in 16 of 5% the last 18 years Jacobson surveys1, 10% Detroit driven by quality, service and delivery WI NY WI NY MI 35% MI metrics Cleveland Chicago 50% PA PA – Includes top ranking in the recent survey, completed November 2019 OH OH • Well regarded and recognised survey of WV WV over 100 steel sheet customers IL IN IL IN VA VA • Categories of quality, service, price and KY KY on-time delivery, calculated into an North Star North Star Scrap supplier proximity overall customer satisfaction score X% % of volume sold Scrap merchants < 100 miles 9 suppliers within radius Major scrap markets 100 – 200 miles 15 suppliers 100, 200, 300 mile radius • North Star also ranks consistently high HBI plant (under construction) 200 – 300 miles 5 suppliers 100, 200, 300 mile radius > 300 miles 4 suppliers on customer loyalty metrics

(1) Measured by the Jacobson & Associates Steel Customer Satisfaction Survey AN ADVANTAGED ‘BEST-IN-CLASS’ ASSET 46

Strong EBITDA and cash generation through the cycle; industry leading margins; consistently full utilisation

US$M EBITDA and spread (100% basis)1 EBIT margins2 (%) 29.8% 600 U.S. mini-mill spread Moved to 100% 524 EBITDA (100% basis) ownership of 500 North Star 18.7% Cash flow (EBITDA less capex) during 434 1H FY16 374 7.9% 400 364 343 340 325 332 326 324 309 313 320 296 304 295 310 263 278 253 285 300 249 257 North Star EAF Peers BF Peers 244 218 247 248 250 233 240 215 219 195 221 232 171

194 3 180

200 175 HRC capacity utilisation (%)

168

164

157

156

156

154

153 151

138 150 138

133 137

135

132

131

130

127 127

122

117 114

108 100%

102

100

99 99

97

94

92

92

91

89

87 87

83 83

81 North Star

78

74

71 71

100 71

66 66

65

63

63

61 61

54 80%

25

24

23

21

16

14

12 12

4 4 0 60% USA (excl North Star) Impact of GFC on volume, and NRV 40% -100 impact on pig iron holdings (US$56M)

20% (104) (105) GFC

0%

1H03 2H03 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H11 2004 2006 2008 2010 2012 2014 2016 2018

(1) US Midwest mini-mill HRC spread (metric) – based on CRU Midwest HRC price (assuming illustrative one month lag), SBB #1 busheling scrap price (assuming one month lag) and Metal Bulletin NOLA pig iron price (assuming two month lag); assumes raw material indicative usage of 1.1t per output tonne. Note, North Star sales mix has longer lags (2) Reflects CY2018 North Star underlying EBIT margin. Peer margin data sourced from company information, simple average of three BOF and three EAF North American peers using relevant segment information (3) Hot Rolled Coil utilisation. Source: CRU, company data EXPANSION CONSISTENT WITH LONG-TERM TRANSITION TO EAF PRODUCTION 47

The long term trend to EAF production is still emerging in the HRC market; assisted by industry consolidation

Production methodology mix (%, million metric tonnes) US HSM capacity consolidation (%, million metric tonnes)

Crude steel production mix Flat steel production mix Total producers 20 10

80mt 102mt 81mt 87mt 38mt 59mt 47mt 52mt Gulf States 73mt Acme Steel 1.2% 1.1% 69mt Beta Steel 1.5% 1.5% JSW Steel WCI 1.9% 2.2% 2.1% 2.2% Big River Blast Gallatin 3.0% 4.2% 32% DFC 3.4% NLMK 39% Furnace Trico Steel 4.7% Wheeling 4.7% 53% Weirton Steel 25.2% ArcelorMittal Blast Furnace 7.0% 62% 65% Rouge Steel 71% & Slab Processor Inland Steel Newentrants 9.0% 83% National Steel 3.1% North Star Bethlehem 4.2% CSI 9.5% 98% Steel 8.4% Steel Dynamics LTV Steel 12.0%

Closed or consolidated consolidated or Closedproducers 13.0% AK Steel 68% EAF North Star 2.8% 61% CSI 2.5% 3.3% Steel Dynamics 16.0% 47% AK Steel 7.4% 38% 35% EAF

29% Nucor 7.6% Existing Existing producers 17% 21.5% US Steel US Steel 13.8% 2% 1991 2000 2010 2018 Existing producers 1991 2000 2010 2018 2000 2018

Source: Worldsteel Association, SRA RECENT CAPACITY ADDITIONS 48

EAF HRC capacity being added in North Star’s region, blast furnace HRC capacity recently idled

US HRC capacity additions (million metric tonnes) Overview of US HRC capacity Key Nameplate capacity additions, not utilisation adjusted for production1 ME North Star Distance from Capacity VT NH EAF mill Mill Location North Star change ND MN NY BOF mill

North Star Delta, OH - ~0.85mt WI SD ArcelorMittal MI US Steel Slab processor Indiana Harbour NJ Great Lakes PA North Nucor Gallatin Ghent, KY 200 miles 1.3mt IA Star JSW Mingo US Steel Gary OH NE Junction IL IN Within region Within Mingo WV VA JSW Steel 195 miles 1.5mt (targeted) Junction, OH Nucor Gallatin KY MO KS Subtotal 3.65mt NC

Big River Steel TN MI Osceloa, AR 510 miles 1.5mt Big River SC NY (Phase 2) Steel OK WI AR ArcelorMittal US Steel Steel Dynamics GA Sinton, TX 1200 miles 2.7mt AL Indiana Harbour Great Lakes PA

Southwest MS North Outside region Outside Star LA Subtotal 4.2mt TX US Steel Gary National total 7.85mt FL OH JSW Mingo IN Recent idling announced IL Junction Steel Dynamics WV 1 Blast furnace at US Steel Great Lakes, Ecorse, MI (60 miles from North Star) Sinton 1 Blast furnace at US Steel Gary, Gary, IN (170 miles from North Star) Nucor 1 Blast furnace at ArcelorMittal Indiana Harbour, East Chicago, IN (190 miles from North Star) Gallatin KY

Source: SRA, company filings, BSL analysis (1) Capacity utilisation recognises that capacity additions are unlikely to operate at nameplate capacity; conservatively assumed that new capacity could operate at a practical utilisation of ~85% COMPREHENSIVE MANAGEMENT OF PROJECT EXECUTION AND INTEGRATION 49

Strong governance and execution regime; thoroughly reviewed by internal and external experts

Risk area Management

Experienced • Governance steering committee including highly experienced executives project • Driven by leading engineering capability from across BlueScope management • Early engagement of local proven contractors, with access to local resources and have long term experience and commitments to site

• Appropriate contingencies and escalation included in determining capital cost • Commenced engineering design work with OEMs and Jacobs, ahead of initial schedule Disciplined • Appropriate project delivery models and cost mechanisms are embedded in the installation contracts budget control • Major OEM and construction management contracts signed • Incentives in place to maintain productivity and reduce waste

Impact to • Coordinated and detailed planning to ensure optimised use of the available downtime of the existing plant existing • Use of experienced consultants who are very familiar with North Star’s operations operations • Team has significant technical and project resourcing expertise and will be bolstered for execution to identify and resolve any issues

Integration • Well-resourced and capable team for process and design integration of new • Coordinated and detailed planning to ensure effective integration of the equipment equipment UPDATE ON EXPANSION PROJECT 50

Project on track with new plant to be commissioned during FY2022; full ramp up 18 months thereafter

Key milestones to date • Air permit received • Major OEM contracts executed (Melt Shop, Caster, Tunnel Furnace, Cranes & High Voltage Yard) ~ $150M • Partnered with Rudolph Libbe Group to operate as Construction Manager & General Contractor • Commenced siteworks including: – establishment of contractor facilities and parking, – relocation of site utilities, employee entrances and parking, and – construction of new administration building and consumables warehouses • Planned November shut activities completed as scheduled UPDATE ON EXPANSION PROJECT 51

Project on track with new plant to be commissioned during FY2022; full ramp up 18 months thereafter

Current progress of site works

Project team & contractor facilities New administration building underway New consumables building underway

New melt shop location New employee parking Natural gas main completed relocation • Digital technology TRANSFORM • Carbon and climate change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation BUILDING PRODUCTS ASIA AND NORTH AMERICA BUSINESS STRUCTURE 53

An outstanding suite of assets in high growth regions: China, India, ASEAN, US West Coast

BlueScope BlueScope BlueScope NSC 2 100% 50% 50% 50% 50%

BlueScope China Tata BlueScope Steel (TBSL) NS BlueScope Coated Products (NBCP)

An equity accounted joint venture A BlueScope controlled, and therefore consolidated, joint venture

China India Thailand Indonesia Malaysia Vietnam Nth America (100%) (100%) 1 (80%) 3 (100%) (100%) 4 (100%) (100%)

• Metallic coating • Metallic coating • Metallic coating • Metallic coating • Metallic coating • Metallic coating • Kalama (WA) and painting and painting and painting and painting and painting and painting • Rancho • Lysaght • Lysaght • Lysaght • Lysaght • Lysaght • Lysaght Cucamonga (CA) • Engineered • Engineered • Ranbuild • Ranbuild • Ranbuild • Ranbuild • ASC Building building solutions building solutions Products (PEBs) (PEBs) • AEP Span • ASC Steel Deck

(1) TBSL joint venture encompasses SAARC region (India, Sri Lanka, Bangladesh, Pakistan etc.) (2) Corporation (NSC) (3) Loxley Public Company Limited is a 20% partner in Thailand (4) Includes Singapore and Brunei. NS BlueScope owns 100% of the steel coating business and 60% of the rollforming (Lysaght) businesses in Malaysia in a JV with United Engineers Limited BLUESCOPE CHINA 54

A premium producer of metal coated and painted steel building products and engineered building solutions

• BlueScope China employs over 1200 people and comprises three business units: – Coated China, with capacity to produce up to 250kt of metal coated and 150kt of pre- painted steel per annum – the Butler® China pre-engineered buildings business, which has three sites across China Tianjin – the Lysaght® China rollforming business, which shares two facilities with the Buildings business Suzhou • Selling under the iconic COLORBOND® and ZINCALUME® brand names, with Coated China supplying distributors, rollformers (including Lysaght China), contractors, and pre-engineered Xi’an

building manufacturers (including Butler® China) Shanghai

BlueScope China Underlying EBIT (A$M)

50 Metal coating and painting facility

Combined Butler and Lysaght manufacturing facilities 17 10 14 7 Butler manufacturing facility FY2015 FY2016 FY2017 FY2018 FY2019 BLUESCOPE CHINA 55

Significant performance turnaround completed; focussing on embedding performance and further improvement

Business performance BlueScope China’s strategic pillars

FY2016 to FY2019 – performance turnaround Drive customer • Customer experience enhancement experience and • China Buildings major manufacturing transformation: • Strengthen leading service capability satisfaction focus – Reduced footprint from four to two sites – Significant conversion cost savings realised • Brand differentiation – SG&A headcount and cost reduction • Channels to market development – Enhanced sales capability Market growth • Premium and innovative product and solutions • Coated China sales and marketing activities focussed on increasing penetration into • Existing market development new channels, such as distribution and pre-engineering buildings • New high value segment and applications acquisition • Manufacturing excellence Beyond 2020 – growth potential Enhance • Operational continuous improvement on cost and manufacturing and • Exposed to niche high-value segments of the Chinese building and construction capital efficiency operational excellence industry, growing at double the national GDP level • Operation digitalization • Cost savings and productivity improvements have been embedded, healthy margins Improve people and • Investment in critical resources • BlueScope China focusing on customer experience, market growth, operational capability • People development programs excellence and capability development development • Targeted training TATA BLUESCOPE STEEL, INDIA 56

Supplying premium coated and painted steel products and buildings to the building and construction industry

Metal coating and painting facility • Tata BlueScope Steel is an equal joint venture between Tata Steel and BlueScope, which is equity Rollforming facility accounted. This comprises three business units: Buildings solutions facility – the Coated Steel business, with capacity to produce up to 250kt of metal coated and 150kt of pre-painted steel per annum – the Building Products rollforming business, which has four1 facilities in India and Sri Lanka – the engineered building solutions business, which operates a manufacturing facility in Pune New Delhi • Our joint venture partner in India, Tata Steel, has acquired Bhushan Steel, which includes coating Jamshedpur and painting assets. BlueScope is working though the implications of this acquisition for the joint venture with Tata Steel

Tata BlueScope Underlying EBIT (A$M, 100% basis) Pune

Chennai

50 57 54 35 19

FY2015 FY2016 FY2017 FY2018 FY2019 Colombo

(1) Two facilities owned by Tata BlueScope Steel, two subcontract facilities NS BLUESCOPE COATED PRODUCTS, ASEAN AND US WEST COAST 57

Outstanding footprint in large and growing markets; focussed on growing premium branded businesses

• NS BlueScope Coated products is a 50:50 joint venture enterprise ASEAN region US West Coast

between BlueScope and Nippon Steel Corporation of Japan, operated Spokane and consolidated by BlueScope Tacoma Ha Tay • The business primarily serves the large and growing building and Kalama Salem construction markets with innovative, high quality coated & painted Yangon steel products and solutions across ASEAN and the US West Coast Khon Kaen Sacramento Rangsit • The metal coating, painting and roll-forming businesses employ over Map Ta Phut Salt Lake City Rancho 2,700 people across 29 plants in Indonesia, Thailand, Malaysia, Phu MyDong Nai Cucamonga Vietnam, Singapore, Brunei and the US, including 6 metal coating and Fontana painting facilities and 23 rollforming facilities Kota Kinabalu Brunei Klang / Kapar Bintulu NS BlueScope Underlying EBIT (A$M) Shah Alam

Medan Singapore Kuching Anchorage 186 144 139 102 69 Cilegon Makassar Metal coating and painting facility FY2015 FY2016 FY2017 FY2018 FY2019 Cibitung Surabaya Rollforming facility NS BLUESCOPE PERFORMANCE 58

Challenging market and competitive conditions driving continuation of recent underperformance

Current market conditions Coated products steel spread1 (US$/t) China coated exports (mt) • Demand in the region has been impacted by 200 macroeconomic events, particularly in Thailand, Malaysia and Indonesia, and is most evident across the higher margin projects segment 150 • The softness in demand has continued for longer than expected, with the confluence of lower demand across three key countries having a compounding impact on NS BlueScope performance 100 10mt • Chinese overcapacity in coated and painted products has lead to increased exports, impacting industry benchmark spreads and rapidly increasing competition 50 in the region 3mt • Ongoing global trade disputes have further impacted this dynamic, as existing trade flows are disrupted and 0 shift into the ASEAN region from existing destinations 2012 2013 2014 2015 2016 2017 2018 2019 2012 2018

(1) Coated products spread is calculated as the China export hot-dipped galvanised index less the East Asian hot rolled coil index, unlagged. Source: SBB Platts IGNITE 5G STRATEGY UPDATE 59

Focus on delivering long term profitable growth for BlueScope notwithstanding near term weak macro conditions

Actions are well advanced to drive productivity and optimise the manufacturing footprint to suit market conditions

CUSTOMER • Thorough review of market offers resulted in product re-specification to align with demand and enhance margin IGNITE 5G STRATEGIC FOCUS AREAS AND MARKET • Home Appliance market in Thailand reassessed; reduced expectations of volumes and returns FOCUS

• On track to deliver $40M of cost and productivity improvements over 2018 cost base OPERATIONAL • New high speed metal coating line in Thailand being ramped up to improve cost position of retail products EXCELLENCE • Focus on Manufacturing Excellence and Automation

PEOPLE, • Improved salesforce effectiveness, restructured to underpin future success CAPABILITY • Continuous improvement program in place, strong focus on cost AND CULTURE

• Focus remains on driving product differentiation, growing our brands and investing in our distribution channels: GROWTH – Successful launch of advanced AM1 coating technology in Vietnam FOCUS – Investing in consumer branding, and rapidly expanding retail footprint; now with over 300 points of presence • Acquisition of cold rolling capacity in Malaysia delivering feed sourcing benefits

(1) AZ coating is a widely produced metal coating technology whereby a protective alloy coating of and aluminium is added to steel to protect its steel base against corrosion. AM coating introduces magnesium into the aluminium-zinc alloy coating, which improves galvanic protection by activating the aluminium PERFORMANCE OUTLOOK 60

NS BlueScope well leveraged to macroeconomic recovery; long term growth opportunity remains compelling

Current operating outlook Long term growth story Finished steel consumption per capita (kg/person)

• Weak macroeconomic conditions persist across our • We remain confident in the longer term growth 600 key markets (mainly Thailand and Malaysia), impacting opportunity in the ASEAN region, underpinned by 523 volumes and earnings levels favourable long term trends: 500 • Whilst the current macro environment is weak, the – Growing population and rising middle class business is well leveraged to the upside – High and growing levels of urbanisation 400 – Cost and productivity improvement program has – Low levels of steel consumption per capita 324 restored profitability at the bottom of the cycle • 301 298 Focusing on developing opportunities in product, 300 – Regional macro conditions expected to improve, process and service across the value chain, to 239 226 with a large backlog of commercial and industrial enhance our position as a leader in coating and ASEAN 200 work in the pipeline painting Average o e.g Eastern Economic Corridor in Thailand • Recently completed cold rolling mill acquisition in 130 100 • Focus on growth has remained through the downcycle, Malaysia, providing feed sourcing benefits to both 52 with continued investment in brands and channels Malaysian and the broader region 0

• Unclear when macro environment will improve; recent – Mill currently in commissioning, with EU

weakness has persisted for longer than expected commercial production targeted for February USA

2020 China Vietnam – Thailand

Macro conditions and business performance in Malaysia Indonesia Indonesia has shown early signs of improvement • Indonesian feed sourcing benefits from IA-CEPA1

(1) Indonesia-Australia Comprehensive Economic Partnership Agreement • Digital technology TRANSFORM • Carbon and climate change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation BLUESCOPE BUILDINGS NORTH AMERICA (BBNA) BUSINESS OVERVIEW 62

BBNA is a leading supplier of engineered building solutions into the US non-residential construction market

• Buildings North America designs, manufactures and markets engineered building solutions into the large and stable low-rise non-residential US construction market, under leading brands Butler® and Varco Pruden® • Well positioned to benefit from trends towards e-commerce, with a focus on data centres, warehousing and distribution centres and last mile logistics • Provides services throughout the project lifecycle from building concept to field construction • Effectively an engineering and technology company with competitive advantages in product innovation, sophisticated proprietary system technologies and strong in-house engineering capability

OWNER CONCEPT DESIGN VISUALIZATION VALUE ENGINEERING MANUFACTURING CONSTRUCTION

Our Builders utilise our premium brands and proprietary software • We leverage in-house engineering capabilities to design efficient tools in the construction market to win work add value in the structures on projects construction process • We utilise a common manufacturing platform with a national footprint • Provide project management throughout the construction project

7 manufacturing sites >2000 network dealers UPDATE ON PERFORMANCE AND DIRECTION 63

End market demand remains robust; extended lead times on high activity and weather delays remain

Update on performance BBNA strategy – “Building the Future, Together” • The business continues to see strong demand conditions and order intake Our EMPLOYEES are the strength of the Company – The warehousing, logistics and data centre end-use segments and our BUILDERS are our PARTNERS. They are continue to be strong the centre of all of our efforts • A number of key initiatives are being progressed to drive improved Everyone contributes by providing premium performance and support future growth potential: SERVICE, meaningful CONNECTIONS, and – investment in resources to achieve a step change in customer lead differentiating SOLUTIONS for our Builders times. This will likely take at least 18 months to bring that additional Capacity capacity fully online constrained due to BBNA Underlying EBIT (A$M) longer lead times – foundational technology investment is progressing to modernise and

provide a complete digital engineering and customer experience Performance – continued focus on growing the BlueScope Properties Group, challenged post-GFC 75 58 providing downstream demand for the builder network and delivering 53 7 32 34 returns in its own right (6) (6)

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Post restructuring Unusually large BPG program benefits contribution ($16.4M) BLUESCOPE PROPERTIES GROUP (BPG) 64

BPG creates downstream demand for the builder network and delivers returns in its own right

• BPG develops industrial properties (warehouses and distribution centres), and provides direct access to the growing warehouse and distribution centre market, driven by strength in eCommerce, consumer goods etc – BPG also creates value for the BBNA Builder network by providing access to projects

• BPG offers a full-service approach, access to capital, and the ability to build upon the long- standing and proven history of BBNA – Services include Site Selection, Land Acquisition, Facility Specifications, Permitting, and Build-to-Suit for Lease / Build-to-Suit for Sale

• BPG has demonstrated the ability to provide a meaningful increase to the earnings and cash flows of Buildings North America, but can be lumpy due to project nature of activities. Business will continue to be developed within a clear governance framework

• Risks are managed – BPG completes extensive due diligence prior to committing to any development – The BBNA Builder network constructs the projects – All projects must satisfy leasing and hurdle rate requirements prior to commencement EXAMPLES OF RECENT BPG PROJECTS 65

Two examples in the growing Orlando, FL region, service distribution, manufacturing and office sectors

The Park @ 429 Mid Florida Logistics Park • The Park @ 429 is a Class A industrial and office park located in the city of • Mid Florida Logistics Park is a Class A industrial business park located in Ocoee just outside of Orlando, FL the city of Apopka just outside of Orlando, FL • Made up by two buildings, with a combined footprint of over 40,000m2 • Made up of five buildings, with a combined footprint of over 200,000m2 • Suited to distribution, light manufacturing and office users, and provides: • Suited to distribution, light manufacturing and office users, and provides: – Immediate access to transport – Immediate access to highways and rail sidings – Close proximity to quality labour and customers – Close proximity to the tourist district, quality labour and customers – Great visibility with significant major road frontage – Great visibility with significant major road frontage – Quality local amenities in the Ocoee commercial district – Quality local amenities in the Apopka commercial district • Digital technology TRANSFORM • Carbon and climate change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation NEW ZEALAND AND PACIFIC STEEL (NZPAC) 67

Produces flat and long steel for The New Zealand market, and building components in the Pacific Islands

New Zealand • The and Pacific Islands business comprises the Waikato Koné North Head mine, the Glenbrook steelworks, the Pacific Steel long products business and the Pacific Islands businesses Nouméa Otahuhu

• It produces a range of flat and long steel products for domestic and export use, New Caledonia and supplies all major markets including construction, manufacturing, Glenbrook infrastructure, packaging and agriculture Nadi • New Zealand Steel is the only steel producer in New Zealand, uses locally- Fiji sourced iron sand and coal to manufacture approximately 660kt of steel slab and billet a year Suva

• The business employs around 1,500 people, and includes: – Pacific Steel New Zealand, acquired by BlueScope in 2014 as a long product Port Vila business (rolling mill and wire drawing facilities) – The Pacific Islands businesses, with facilities in Fiji, New Caledonia and Vanuatu Flat steel production facility Vanuatu which manufacture and distribute the LYSAGHT® range of products, Long steel production facility and long products in Fiji Rollforming facility BUSINESS UPDATE 68

Recent underperformance follows a period of robust earnings; strong focus on performance going forward Elevated Vanadium Business performance Underlying EBIT ($M) 71 72 contribution (up $23M) • Demand in the residential construction sector remains robust, Performance challenged by 48 41 however some softening has been observed in the infrastructure low global steel prices market 9 14 9 • In 1H FY2020, we are now expecting a similar result to 2H FY2019, which is lower than prior expectations due to: -7 -16 Benefit of cost out program Maintenance timing, cost pressures – weaker than expected vanadium prices, and -33 and lower Vanadium contribution – higher costs on lower production which has been impacted 1H FY15 2H FY15 1H FY16 2H FY16 1H FY17 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 by softer infrastructure demand Domestic volume (kt) • Recent underperformance has reinvigorated focus on 232 229 239 productivity and cost discipline 218 216 212 216 222 214 223 92 Pacific – It is imperative for steelmaking in New Zealand to be 87 87 96 98 96 87 79 90 86 Steel globally cost competitive – NZ Seeking to leverage technology to drive productivity and 132 129 133 125 135 135 132 128 147 127 cost improvement e.g. new digital scheduling tool to Steel optimise product flows 1H FY15 2H FY15 1H FY16 2H FY16 1H FY17 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 • Digital technology TRANSFORM • Carbon and climate change

• Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel

• Safe and sustainable operations • Returns focus: ROIC > WACC DELIVER • Strong balance sheet • Disciplined approach to capital allocation MAJOR SUSTAINABILITY TOPICS FOR BLUESCOPE 70

Major topics identified in consultation with stakeholders and other reference points

Competitiveness of brands and GOVERNANCE AND products BUSINESS CONDUCT Impact of Environmental automation on regulation workforce

Innovation Financial CLIMATE CHANGE sustainability Executive and growth Communities remuneration AND ENERGY Environmental impacts Governance and Business conduct Sensitive Climate change and energy Leadership Local sites and talent SAFETY, HEALTH AND investment Safety, health and wellness development WELLNESS Product Supply chain sustainability stewardship Diversity and inclusion Changing workforce Social Tax media risk transparency SUPPLY CHAIN Workplace culture and engagement Commodity SUSTAINABILITY prices International trade Management of Joint Ventures Digital experience DIVERSITY AND INCLUSION SAFETY, HEALTH AND WELLNESS 71

Safety is a key part of BlueScope’s identity; evolving our approach to the next level of safety improvement

Released five year Health, Safety and Environment strategy in FY2019 LTIFR1 Lost time injuries • per million hours Greater focus on injury severity worked 1.16 and the care taken to return our 0.80 0.57 0.62 employees to meaningful work

FY2016 FY2017 FY2018 FY2019 • Building a strong culture of learning, trust and inclusion

• Rigorously challenging the MTIFR1 effectiveness of our significant Medically treated 5.1 5.6 5.4 5.6 risk controls injuries per million hours worked • A more holistic approach to health and wellbeing opportunities FY2016 FY2017 FY2018 FY2019

(1) 43 lost time injuries (26 in FY2018), 207 Medical Treatment Injuries (226 in FY2018) Note: LTIFR and MTIFR includes Orrcon, Fielders and Pacific Steel businesses from 2016 and North Star from 2017 SAFETY, HEALTH AND WELLNESS 72

Our approach to HSE management is evolving

HSE Vision HSE Goals BlueScope’s people are inspired to sustain and grow our business through trust, and innovative HSE partnerships • Think holistically about risk as an opportunity to learn and enhance our HSE and business performance The following principles will guide us: • Collaborate, listen and assist internal and Care not tell Not everything that external partners to enhance value and (Suspend your agenda) counts can be counted reduce risk across our supply chain and our community • Continuously enhance our systems to create People lead and Hold people to account, meaningful and practical guidance so that systems support but get their account people lead, and systems support us • Facilitate learning and engage our people to Language matters Take time to reflect develop our risk knowledge and decision (Making sense) (What have we learnt?) capability SUSTAINABLE SUPPLY CHAIN 73

Significant progress made; design and rollout progressing – supplier due-diligence processes operational

Processes and documentation in place Number of assessments completed / underway by assessment type • Supplier Code of Conduct published and available in 9 languages Assessments complete Assessment Complete, with Assessment Assessments • Refinements to supplier segmentation – prioritising our engagement effort accepted, with further actions accepted underway conditions required • Quarterly reporting to Executive Leadership Team and Risk and Corporate Desktop 10 2 8 4 Sustainability Committee Assessment Self Assessment • Ongoing engagement with external experts to ensure best practice 19 2 1 25 Questionnaire Onsite 1 1 Internal training and rollout Assessment • Face-to-face training for over 180 senior leaders and procurement and supply chain practitioners, across all business units (9 countries) WHAT'S NEXT? • Begin process of assessing our own sites against Code of Conduct standards • Workshops to review supplier segmentation and prioritisation of suppliers based on in-country knowledge and country-specific risks • Deep dive into suspected higher risk areas of the supply chain to develop better understanding and more detailed due-diligence approach • Peer reviews to ensure consistent standard is applied to assessments • Well advanced for the reporting requirements of the Modern Slavery Act SUSTAINABLE SUPPLY CHAIN 74

Tiered assessment framework enables a nuanced approach to supplier engagement; assessments underway

Supplier segmentation model Supplier assessment framework ASSESSMENT ASSESSMENT ASSESSMENT

REQUIREMENT PROCESSES OUTCOMES

Moderate Priority 2 Priority Assessment • Accept (with confidence), Priority 1 Corporate Desktop Assessment required: • Accept (with conditions), or • Desktop research by ESG specialists Priority 1 and • Insufficient information to accept • To determine alignment of supplier’s Priority 2 suppliers → Proceed with site level assessments (starting practices to those of BlueScope with Self Assessment Questionnaire) Priority 2 New suppliers – if expected to Minimum become Priority 1/2 Self Assessment Questionnaire or Specialised • Zero or minor gaps (assessment complete), Specialised • Initial point of contact on Code of • Minor gaps (with Corrective Action Plan), or

Risk Other suppliers Conduct and assessment process based on • Significant or numerous gaps Leverage • Questionnaire completed by supplier, judgement of the → Onsite assessment required business assessed by BlueScope Risk Assess potential risk associated with suppliers (considering supplier specific based on set risk criteria Onsite Assessment • Onsite audit (zero or minor gaps), or ESG risks and view • • Leverage Assess possible leverage to engage with suppliers of leverage) Conducted by third-party social Onsite audit (significant / numerous gaps) based on materiality and length of relationship compliance auditor → Post Audit follow-up and Corrective Action • Observations and Corrective Action Plan management Plan prepared with supplier → Escalation of significant issues DIVERSITY AND INCLUSION 75

Strong focus and effective strategies creating demonstrable improvement in workforce diversity

• BlueScope is committed to creating a safe and Female % of workforce Female % of recruitment

inclusive workplace where everyone feels valued, 25% Board 25% 43% has a sense of belonging, and can make an impact 33% 38% 40% 40% • 11% 37% We are proud of our global workforce, and leverage Executive 25% its diversity to sustain our business success Leadership Team 38% 33% 40% 29% 14% • Through the power of inclusion and diversity, we Executives 15% 20% increase innovation and performance, anticipate 27% 23% and exceed our customers' expectations, and build 27% Salaried 27% our talented and capable team 28% 30% • In FY2020, we will retain our focus on gender 4% Operator 6% 7% Workforce 8% balance and building a more inclusive workplace, 11% and enhance overall workplace diversity across our 17% global footprint to deliver better outcomes for our Total 17% BlueScope 19% BSL Total Recruitment Operator/Trade people, customers and communities 21% Recruitment FY2016 FY2017 FY2018 FY2019 GOVERNANCE AND BUSINESS CONDUCT 76

BlueScope seeks to live the values in its Bond by promoting a culture of integrity across our global operations

• We continue to work on strengthening BlueScope’s culture to support ethical and responsible work practices across every part of our business • Recently refreshed our Board Committee charters, embedding the Three lines of Accountability risk management model • To support our commitment to encourage a culture of speaking up and protecting those who do, in FY2019 we: – Launched the new ‘Speak Up’ policy, available on our website – Focussed on increasing our employees’ understanding of how they can report misconduct concerns, including via our externally managed conduct hotline • Our dedicated Ethics and Compliance function supports each of our businesses to identify and manage conduct risks and oversees the management of misconduct allegations • On 30 August 2019, BlueScope advised that the ACCC has commenced civil proceedings against BlueScope and a former employee alleging contraventions of the Australian competition law cartel provisions. As the matter is now before the courts it would not be appropriate to comment further at this time1

(1) The ASX announcement regarding the ACCC proceedings can be found on BlueScope’s website FINANCIAL FRAMEWORK 77

Clearly stated financial framework to guide our decision making

RETURNS OPTIMAL DISCIPLINED 1 FOCUS 2 CAPITAL STRUCTURE 3 CAPITAL ALLOCATION • ROIC > WACC through the cycle • Strong balance sheet, with a target of Invest to maintain safe and reliable operations, around zero net debt1 and in foundation and new technologies • ROIC incentives for management and employees • Retain strong credit metrics Returns-focussed process with disciplined competition for capital between: • • Maximise free cash flow generation Intent to have financial capacity through the • Growth capital cycle to make opportunistic investments or to – Investments fund reinvestment in or a shutdown of steelmaking if not cash positive – M&A (but avoid top of the cycle) • Shareholder returns • Leverage for M&A but only if accompanied – Distribute at least 50% of free cash flow by active debt reduction program to shareholders in the form of consistent dividends and on-market buy-backs2

(1) Excluding the impact of leases as per AASB16 (2) On-market buy-backs are seen as the most effective method of returning capital to shareholders after considering various alternatives and given BlueScope’s lack of franking capacity. The Board reserves the right to suspend or terminate the buy-back at any time RETURNS FOCUS 78

Targeting returns above cost of capital through the cycle; average free cash flow of $928M over last three years

Group ROIC1 Performance (%) Net cash flow, before investment expenses and financing ($M) 20.0% 19.5% 18.5% Implied 17% cash 1,304 flow yield, based on 9.5% ~$14.00 share price

2H FY2016 FY2017 FY2018 FY2019 749 731 FY2019 ROIC by Segment (%) 35.4% 24.1% 19.5% 20.5% 8.6% 11.2% 1H

BlueScope North Star Australian Building New Zealand Buildings Steel Group Steel Products Products Asia & & Pacific Steel North America FY2017 FY2018 FY2019 North America

(1) ROIC calculated as underlying EBIT over 13 month average of pre-tax net operating assets As at 30 June 2019 the BlueScope Steel Australian tax consolidated group is estimated to have carried forward tax losses of approximately $1.43Bn. There will be no Australian income tax payments until these losses are recovered DISCIPLINED CAPITAL ALLOCATION 79

Driving competition for capital with disciplined, returns focussed process

Capital expenditure focus areas Capital and acquisition expenditure ($M) Capital management framework

Sustaining North Star expansion ~630 to 730 MAINTAIN SAFE AND Foundation Acquisition and investment Operating Cash Flow Divestments RELIABLE OPERATIONS Growth Excludes $1,008M for ~200 Available Capital acquisition of remaining to 3001 50% share in North Star 489 INVEST IN FOUNDATION AND Balance Sheet NEW TECHNOLOGIES 88 383 389 367 ~100 45 90 102 121 Sustaining Capital INVEST FOR GROWTH IN 56 29 ~50 8 PREMIUM BRANDED 6 11 PRODUCTS Foundation Capital

260 273 257 282 ~280 COMPETITION FOR CAPITAL INVEST TO MAXIMISE VALUE FROM ‘BEST-IN-CLASS’ Growth Acquisition & Shareholder ASSETS Capital Investment Returns FY2016 FY2017 FY2018 FY2019 FY2020

(1) Indication of FY2020 North Star expansion project CAPEX spend range estimated to be 20-30% of total US$700M spend, using a US$0.70 indicative exchange rate BLUESCOPE'S INVESTMENT PROPOSITION 80

Disciplined and advantaged steel building products company focussed on growing long term shareholder value

ASSETS & CAPABILITY CAPITAL DISCIPLINE RETURNS FOCUS

• Integrated and resilient Australian business • Strong balance sheet with target of around • Target ROIC > WACC through the cycle delivering returns across the cycle zero net debt • Target at least 50% of free cash flow to • Iconic industrial brand position of • Returns-focussed process with disciplined shareholders COLORBOND® steel competition for capital between investment • Target EPS growth through the cycle • Global leader in coating and painting for for long-term growth and returns to Building and Construction Markets shareholders • Operate in the world’s two largest construction markets of China and US, and high growth markets in ASEAN and India • Lowest cost brownfield expansion – North Star is one of the most profitable mini-mills in the US QUESTIONS? BLUESCOPE INVESTOR DAY

Mark Vassella Managing Director & Chief Executive Officer Tania Archibald Chief Financial Officer 27 November 2019

BlueScope Steel Limited. ASX Code: BSL

ABN: 16 000 011 058