FY2013 Financial Results Presentation

19 August 2013

Paul O’Malley, Managing Director and Chief Executive OfficerCharlie Elias, Chief Financial Officer

BlueScope Steel Limited. ASX Code: BSL

2

Important NoticeTHIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION ORRECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPESTEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKINGAPPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFORMATION OROPINIONS CONTAINED IN THIS PRESENTATION AND, SUBJECT ONLY TO ANY LEGAL OBLIGATION TODO 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 BEIDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “MAY”, “WILL”, “SHOULD”,“EXPECT”, “INTEND”, “ANTICIPATE”, “ESTIMATE”, “CONTINUE”, “ASSUME” OR “FORECAST” OR THENEGATIVE THEREOF OR COMPARABLE TERMINOLOGY. THESE FORWARD-LOOKING STATEMENTSINVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAYCAUSE OUR ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS, OR INDUSTRY RESULTS, TOBE 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 THEIRRESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, ACCEPT NO RESPONSIBILITY FORANY INFORMATION PROVIDED IN THIS PRESENTATION, INCLUDING ANY FORWARD LOOKINGINFORMATION, AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FORANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ONANYTHING CONTAINED IN OR OMITTED FROM IT OR OTHERWISE ARISING IN CONNECTION WITHTHIS.

INTRODUCTION

4

Lost

time i

njurie

s per

milli

on m

an-h

ours

worke

d

Lost time injury frequency rate

Medic

ally t

reate

d inju

ries p

er m

illion

man

-hou

rs wo

rked

Charts include contractors from 1996, Butler from May 2004, 2007/08 acquisitions and Australian operational restructure in 2012

Note: 1 – The MTIFR baseline has been reset from 4.4 to 6.3. This change relates to revised principles that raise the bar on BlueScope’s MTI definition

15.75.86.35.15.76.46.86.6

9.38.39.412.4

17.0

21.922.4

29.1

47.1

52.2

60.0

1312050403020100 1110090807069998979695

0.60.90.70.90.90.90.60.80.91.61.8

2.83.5

4.13.5

4.8

8.0

14.0

16.0

1310 1211090807060504030201009998979695

Medically treated injury frequency rate

Progress towards our goal of Zero Harm

Years ended 30 June Years ended 30 June

5

• FY2013 reported net loss after tax of $84M, a $960M improvement on FY2012

• $30M underlying net profit after tax, a $267M improvement on FY2012

• $49M 2H FY2013 market guidance comparable NPAT1

• Major achievements in delivery of NS BlueScope Coated Products JV transaction and Coated & Industrial Products Australia turnaround

• Significant financial improvement after restructure

• Net debt of $148M at 30 June 2013, being <0.4x FY2013 underlying EBITDA, and a reduction of $436M from 30 June 2012 (after adjusting for the benefit of the timing of year-end cash flows)

Note: Underlying results are provided to assist readers better understand the underlying financial performance,refer page 45 for information on the adjustments from reported financial information

(1) Underlying NPAT adjusted for add back of $29M post-tax period-end inventory net realisable value provision

Summary

6

• Building Products1 underlying EBIT improved to $80M; growth of 57% over FY2012 driven by Thailand, Vietnam and North America improvement

• Global Building Solutions underlying EBIT result of $34M (excludes one-off impact of prior period provision adjustment). Strong contribution from North America and Building Products China, offset by weaker earnings from Buildings Asia

• CIPA underlying EBITDA of $150M2 in FY2013, of which $71M in 2H. Improved spread; lower loss-making export despatches; cost reduction performance strong; domestic volume slightly weaker than FY2012

• Building Components & Distribution Australia underlying EBIT loss of $25M. Although there is more work to be done, this is a significant improvement on the $46M EBIT loss in FY2012

• NZ Steel underlying EBIT improved to $40M in 2H FY2013 ($42M for full year), up from $2M in 1H. Higher steel and iron ore prices in 2H, and fewer maintenance outages

• Hot Rolled NA underlying EBIT of $67M, improved $5M on FY2012. Continuing review of expansion opportunities

(1) Building Products ASEAN, North America and India segment(2) CIPA is Coated and Industrial Products Australia segment. CIPA underlying EBITDA includes: $46M release of STP Advance to align with the carbon costs which are now

being incurred ($23M per half) and $36M favourable one-off workers compensation settlement in 1H

Summary (ctd)

7

YEAR ENDED$M (unless marked) 30 JUNE 2012 30 JUNE 2013 FY2013 vs FY2012Total revenue 8,621 7,290 Lower exports

External despatches 6,714 5,754 Lower exports

EBITDA Underlying 1 99 418

EBIT Reported (820) 52

Underlying 1 (224) 103

NPAT Reported (1,044) (84)

Underlying 1 (238) 30

EPS Reported (234.6) (15.1)

Underlying 1 (53.4) 5.3

Underlying EBIT Return on Invested Capital (4.4%) 2.4%

Net Cashflow From Operating Activities 267 161

– After capex / investments 188 (149)

Dividend (fully franked) Nil Nil -

Net debt 384 148

(1) Please refer to page 45 for a detailed reconciliation of reported to underlying results. Excludes Metl-Span operational earnings which have been re-categorised to discontinued operations.

Financial headlines FY2013 vs. FY2012

FY2012 included large inflows from restructure working capital release and sale of Metl-Span

8

• Broaden base of global customers• Leverage expansive operating footprint delivering an efficient cost base • IP and brands support our competitive market offer• Growth opportunities are capital light

Building Products• Drive NS BlueScope Coated Products joint venture and access new customers and

products• Continue to broaden channels to market

Building Solutions

BlueScope Australia & New Zealand

Hot Rolled ProductsNorth America

Balance Sheet

Mark

et F

irst F

ocus

• CIPA has achieved significant cost reductions; strongly leveraged to domestic demand recovery

• Examine ways to serve the market more efficiently; this may include small acquisitions close to existing core operations

• Expanding iron sands production and despatches in New Zealand

• Continuing very good performance with growth options being investigated

• Maintain strong balance sheet metrics

• Enhanced financial flexibility to invest in incremental growth opportunities

Enhanced financial flexibility to invest in growth

9

Acquisition of Hills Holdings’ Orrcon and Fielders businesses

• Announced today agreement to acquire Orrcon and Fielders from Hills Holdings

• Orrcon is a pipe and tube manufacturer and distributor– Sales revenue of $290M, despatch volume 179kt in the 12 months ended 31 Dec 2012– Structural tubes, precision tubes and hot rolled structural steel and pipes for the agricultural, mechanical, infrastructure,

engineering and automotive after-market sectors– Manufacturing operations in Queensland and South Australia and a national distribution network spanning 12 sites

• Fielders is a building products business akin to BlueScope’s Lysaght business– Sales revenue of $211M, despatch volume 54kt in the 12 months ended 31 Dec 2012 1

– Manufactures a comprehensive range of mainly roll-formed steel products that are supplied to the Australian commercial, industrial and domestic building segments

– 12 sites

• BlueScope will acquire Orrcon and Fielders for a combined purchase price of $87.5M, which largely represents the working capital embedded in the respective businesses, and expects to incur net integration costs of $15M

(1) Net sales, excludes discontinued Queensland operations

10

Rationale and earnings impact of acquisitions

• We have been diligent in reducing our costs across our business footprint

• The businesses are close to BlueScope’s core Australian operations. Our objective is to improve the efficiency with which we can serve Australian customers by further lowering costs through the integration of these businesses with our existing operations

• Following integration, in FY2015 the acquisitions are expected to exceed our return on capital hurdle and be EPS accretive for BlueScope

• The acquisitions are subject to Australian Competition and Consumer Commission approval and typical conditions precedent

• Completion of the acquisitions is targeted for the end of the December 2013 quarter

SEGMENT DISCUSSION

12

Underlying EBIT ($M) Comments on FY2013

• Thailand: Strong performance despite competitive environment. Recovery from floods in 1H FY2012, and growth initiatives in all customer segments

• Indonesia: Increased competition. Improving customer base and sales channels

• Malaysia: Lower volumes due to lower market activity prior to national election

• Vietnam: Ongoing focus on growth and segment diversification initiatives saw continued improvement in performance

• North America: Market conditions flat but making good headway on cost reduction program

• India: Ramp-up of volumes required to further improve financial performance

1H FY2014 direction

• Pursue benefits presented from JV opportunities• Expand market channels, especially to retail customers• Risks around imports and tariff/dumping regimes

Total despatch volumes (Kt)

649 657

607 687

1H

2H

FY2013

1,344

FY2012

1,257

Building Products ASEAN, North America and IndiaUnderlying EBIT growth of 57% in FY2013

(10)

17 21

27

(8)(2) (3)

3

7 9

OtherIndia

Nth America

VietnamMalaysia

IndonesiaThailand

2H FY13

49

(6)6

15

1H FY13

3

(4)1

2H FY12

30

(5)

516

612

31

10

27

48

(2) (14)(15)

4 12 9

10

FY2013

80

(7)

27

FY2012

51

(6)

28

13

• Increased painting capacity and new whitegoods product projects in planning– In-line painting capacity in Thailand to further penetrate retail segment– New whitegoods product: leverage SuperDyma® (NSSMC) product into whitegoods segment

• Japanese customers– Incremental sales have been made to Japanese customers in Thailand and work continues to

demonstrate capabilities to customers in this segment

• Other synergies– NSSMC is a major supplier of HRC to JV entities– Additional synergy identification process is underway and improvements have already been

identified in manufacturing processes

Building Products ASEAN, North America and IndiaCoated Products JV – progress from working together with NSSMC

14

Underlying EBIT ($M) Comments on FY2013• North America:

– Returned to profit on growing market and further cost improvements

– Volumes up 7% on FY2012 and 2H FY2013 up 6% on 2H FY2012. Significant refocus on new product development / differentiation

– June 2013 backlog up compared to same time last year

• Buildings Asia:– Volumes lower on slow-down in building activity in China– One-off unfavourable provision adjustment of $8M in 1H

• Building Products China:– Record profit, despite lower internal sales, driven by new

accounts and improved spread from higher value mix(more painted product sales)

• Global accounts:– New account wins; growth strategy being implemented

1H FY2014 direction• China demand remains weak• North America growth improving• Growth strategy being implemented

103 121 90

(16)(18)(16)Other & intra-segment elims

Products ChinaBuildings Asia

Nth America

2H FY13

246

73

99

1H FY13

306

91

112

2H FY12

256

76

93

(1) 1H FY2013 underlying earnings include an unfavourable $8M prior period (FY2005-FY2009) provision adjustment in Buildings Asia. Chart excludes this unfavourable item.

Global Building SolutionsImprovement in U.S. performance but softer China building volumes

(6)(8)(5)

8 12

10

9

2H FY13

Products China

Other / elimsNth America

Buildings Asia

(6)

4 1

1H FY13

25

12

13

2H FY12

9

8

1

1

Total despatch volumes (Kt)

FY2013

34

(14)

22

12

14

FY2012

33

(14)

19

30

(2)

164(34)

FY2013

552

211

(38)

588

197

FY2012

211253

176

15

Buildings North America• Targeting further growth – from both market improvement

and share gains• Focusing on complementary builder recruitment and

capturing a wider range of builders capability• Driving innovation for added growth – Day Lighting

introduced (FY2012/2013) and Long Bay System launched (FY2014)

Buildings Asia• Positioned to support further growth (both domestic and

Global exports) with Xi’an plant in commissioning– Showcases our capability in sustainable industrial

buildings to meet increasing customer and Government environmental improvement objectives

• Asia markets:– Thailand and Indonesia are realising strong growth– Vietnam and Malaysia are highly cost competitive– China demand remains stable and confidence is low.

‘Premium’ market is seeing increased competition• ASEAN Solutions businesses now fully integrated into GBS

and pursuing stronger growthBuilding Products China• New product development to drive profitable volume growth

(65% of capacity currently utilised)• Continuing focus to increase share of value-added painted

product• Priority to actively expand customer base• Streamlining Lysaght cost base to improve its

profitability

Global sales• Significant focus on new global accounts including:

Coca-Cola Bottling, SAB Miller, Switch and Shoprite

Global Building SolutionsDeveloping the opportunities to deliver growth

16

Global Building SolutionsXi’an facility currently being commissioned

• Our new manufacturing facility in Xi’an (western China) supports plans for increased economic expansion in the Chinese interior

• The facility is China’s first three-star sustainable industrial building (the highest environmental rating in China)

• The buildings showcase a multitude of green and sustainable solutions

– Recycled materials– Rainwater harvesting– Vegetated roof– Day lighting– Natural ventilation

• Construction of the facility began in January 2012, and is now complete; production trials are progressing

Guangzhou

Xi’an Tianjin

Shanghai

Buildings China manufacturing facilities

17

Underlying EBITDA ($M) Comments on FY2013

79

(94)

71

(57)

1H

2H

FY2013

150

FY2012

(151)

• $150M1 underlying EBITDA (of which $71M in 2H)• Decrease in loss-making export tonnes partly offset by higher

per-unit operating costs• Spread improved on the back of lower raw material costs• Cost reduction performance continues• Domestic volumes weaker in FY2013 vs FY2012 due to softer

HRC (weak conditions in pipe & tube market) and plate sales • 2H FY2013 volume similar to 1H; slight mix change with

higher galvanised and HRC sales, vs lower painted and plate sales

• Anti-Dumping Commission (ADC) action on unfair trade:duties in place on plate and metal coated categories;HRC review findings have strengthened duties

• Import volumes appear to be reducing

1H FY2014 direction• Margins may improve should the A$ continue to be softer than

FY2013• Financial performance will be influenced by the level of

domestic building and construction activity • Launching Next Generation COLORBOND®

Total despatches (external & to other BSL segments, Mt)

FY2013

2.61

1.79

0.82

FY2012

3.55

1.99

1.55

2H FY13

1.37

0.89

0.48

1H FY13

1.25

0.900.35

DomesticExport

1H

2H

Coated & Industrial Products AustraliaUnderlying EBITDA improved to $150M profit

(1) Underlying EBITDA includes: $46M release of STP Advance to align with the carbon costs which are now being incurred ($23M per half) and $36M favourable one-offworkers compensation settlement in 1H

18

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Auto & transportAgri & miningManufacturingEngineeringDwelling

Non-dwelling

(1) Normalised despatches exclude third party sourced products, in particular, long products.(2) Engineering includes infrastructure such as roads, power, rail, water, pipes, communications and some mining-linked use..

2H FY08 1H FY09 2H FY09 1H FY10 2H FY10 1H FY11 2H FY11 1H FY12 2H FY12 1H FY13 2H FY13(No. 5 Blast

Furnace Reline)

Total Australian external despatch volumes (Kt)

63%

13%(208kt)

15%(239kt)

9%(144kt)

14%(212kt)

13%(192kt)

14%(202kt)

9%(130kt)

29%(236kt)

28%(235kt)

13%(109kt)11% (90kt)11% (92kt)8% (62kt)

13%(161kt)

13%(160kt)13%

(156kt)8% (105kt)

14%(187kt)

11%(152kt)

14%(198kt)10%

(134kt)

Construction65%

66%

70%

64%27%

(436kt)

21%(344kt)

15%(243kt)

27%(389kt)

23%(341kt)

28%(349kt)

25%(312kt)

28%(391kt)

23%(320kt)

211%

(133kt)11%

(123kt)13%

(157kt)9% (102kt)

67%

29%(340kt)

27%(313kt)

13%(154kt)

10%(124kt)

14%(164kt)

9%(106kt)

67%

29%(344kt)

26%(308kt)

65% 64%

10%(119kt)

11%(128kt)

15%(174kt)

9% (106kt)

29%(346kt)

26%(301kt)

1,614kt 1,466kt 824kt 1,243kt 1,381kt 1,168kt 1,198kt 1,174kt 1,138kt 1,048kt 1,014kt

(264kt) (192kt) (140kt) (164kt) (166kt) (161kt) (160kt) (159kt) (148kt) (143kt) (137)kt

1,368kt 1,274kt 684kt 1,079kt 1,215kt 1,007kt 1,038kt 1,015kt 990kt 905kt 877ktFY20091,958kt

FY20112,045kt

FY20102,294kt

FY20131,782kt

GrossDespatches

less 1NormalisedDespatches

12%(138kt)

12%(131kt)

15%(170kt)

9% (103kt)

28%(321kt)

24%(274kt)

65%

8% (89kt)

11%(118kt)

15%(158kt)

9% (94kt)

30%(311kt)

27%(278kt)

10%(101kt)

12%(119kt)14%

(144kt)8% (82kt)

30%(307kt)

26%(261kt)

66%

FY20122,005kt

Australian demandSoftening of domestic volume in FY2013

19 Source: ABS, BIS Shrapnel, HIA. Charts show change in value of work done / forecast

Residential constructionAnnual % Change(Fin Yrs)

-6.5

0.7

8.7

3.3

10.29.1

12.9

1.80.5

-10

-5

0

5

10

15

20142013

-2.6

2012201120102009200820072006 2015

Non-residential constructionAnnual % Change(Fin Yrs)

Engineering constructionAnnual % Change(Fin Yrs)

3.0

19.1

9.68.4

25.7

-7.4

33.3

-10-505

10152025303540

2014

-4.7

2013

8.7

2012201120102009200820072006 2015

-4.6

1.2

3.3

-1.4

1.31.1

-3.5

2.22.3

-6.0

-4.5

-3.0

-1.5

0.0

1.5

3.0

4.5

6.0

20142013

-0.3

2012201120102009200820072006 2015

HIA F’casts (Apr 13)7 Yr Average 7 Yr Average

BIS Shrapnel F’casts (May 13)

7 Yr AverageBIS Shrapnel F’casts (Jul 13)

External forecasters’ outlook for our key construction exposures

20

Comments on FY2013

• Margin (spread) improvement in FY2013 vs FY2012• Restructure program has delivered cost reductions• Decreased volumes – import competition and tough trading

conditions• In general, pricing and gross margin environment remains

challenging• Market sentiment remains guarded citing softer domestic

demand, unfavourable exchange rates, tight credit conditions and strong import competition

1H FY2014 direction

• Weak volumes continue; exacerbated by lack of business and consumer confidence

• FY2013 restructuring initiatives will deliver incremental cost improvement in FY2014

Underlying EBIT ($M)

Total despatches (Kt)

?148

FY2013

713

425

288

FY2012

758

442

315

2H FY13

348

208

140

1H FY13

364

216

BSL manufactured productExternally sourced product

1H

2H

Building Components & Distribution Australia

(19) (18)

(27)

(7)

1H

2H

FY2013

(25)

FY2012

(46)

21

Comments on FY2013• Benefit of higher iron sands volumes of 1.71Mt

(up 49% on FY2012)• Lower iron sands prices in line with global prices• Lower steel prices due to soft regional steel prices and

high exchange rate• Slight improvement in domestic despatch volumes• Lower conversion costs due to tight control of spend and

improved fixed cost recoveries from higher production volumes

1H FY2014 direction• Increase in iron sand volumes; prices in line with global prices• Improved spread driven by lower raw materials costs• Domestic market improving with increasing residential

construction activity• Weaker NZ$ at this point is a benefit• Anticipated availability of customer supplied second iron sands

export vessel delayed, now expected during CY2015

Underlying EBIT ($M)

Steel despatches (Kt)

261

125

136

2H FY12

294

125

169

2H FY13

317

130

187

1H FY13DomesticExport

Iron sands despatches (Kt)

2H FY13

870

1H FY13

831

2H FY12

674

New Zealand and Pacific Steel ProductsEBIT improved to $40M in 2H FY2013 ($42M for full year), up from $2M in 1H. Higher steel and iron ore prices in 2H, and fewer planned maintenance outages

35

40 34 1H

2H

FY2013

42

2

FY2012

69

22

Monthly number of New Zealand residential construction approvals1

(Number per month)

Source: Statistics New Zealand. Series ID: SSC11AS.

(1) Based on total number of new dwellings consented on an unadjusted basis. Data to June 2013Data includes apartments. Figures for new apartments are compiled from consents that have 10 or more attached new dwellings. Consent definition: A building consent is the formal approval issued by a Building Consent Authority (BCA) to ensure certain works meet the requirements of the Building Act 2004, Building Regulations and New Zealand Building Code

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Mar 02

Mar 03

Mar 04

Mar 05

Mar 06

Mar 10

Mar 12

Mar 11

Mar 08

Mar 07

Mar 09

Mar 13

New Zealand and Pacific Steel ProductsResidential construction approvals trending higher – Christchurch rebuild underway

23

Underlying EBIT1 ($M) Comments on FY2013

• Spread contraction vs. FY2012, driven by lower selling prices partially offset by lower scrap costs

• Favourable contributors to EBIT in FY2013 (vs FY2012):– Increased slab thickness to deliver greater tonnage at

minimal incremental cost– Reduction in depreciation – BSL share US$9M– Conversion cost improvement and various cost reduction

initiatives

1H FY2014 direction

• Continue to review expansion opportunities with a focus on raw material cost reductions

Despatch volumes (BSL 50% share, Kt)

(1) Underlying EBIT recognised for Hot Rolled Products North America mainly comprised of BlueScope’s share of net profit for the North Star BlueScope Steel JV

20 33

42 34

1H

2H

FY2013

67

FY2012

62

479 476

484 507

1H

2H

963 983

FY2012 FY2013

Hot Rolled Products North AmericaUnderlying EBIT improved $5M on FY2012 from lower depreciation charge and benefit of cost control despite weaker spread

FINANCIALS

25

YEAR ENDED

$M 30 JUNE 2012 30 JUNE 2013

Underlying EBIT (224.3) 102.8

Net borrowing costs (109.0) (66.2)

Profit/(loss) from ordinary activities before tax (333.3) 36.6

Income tax (expense)/benefit 111.4 14.6

Underlying profit/(loss) from ordinary activities after tax (221.9) 51.2

Net (profit)/loss attributable to outside equity interest (15.6) (21.5)

Underlying net profit/(loss) attributable to equity holders of BSL (237.5) 29.7

Underlying income FY2013 vs. FY2012

26

2H FY2013NPAT $M

FY2013NPAT $M

Reported net loss after tax (72) (84)Underlying adjustments

Discontinued Business (gains) / losses 4 4

Steel Transformation Plan (STP) release to align with carbon costs 16 32

Business development and pre-operating costs 1 2

Restructuring & redundancy costs 2 17 20

Profit on sale of a previously unrecognised intangible asset - (26)

Borrowing amendment fees 9 9

Deferred Tax impairment 3 45 73

Underlying net profit after tax (incl period-end NRV provision) 20 30Add back period-end net realisable value provision 29 n/a

Underlying NPAT in terms of market guidance (pre-NRV) 49 n/a

Notes: 1 – Underlying NPAT is provided to assist readers to better understand the underlying consolidated financial performance. Underlying information, whilst not subject to audit or review, has been extracted from the full year financial report which has been audited. Detail can be found in Table 2A of the ASX Earnings Report for the year ended 30 June 2013 (document under Listing Rule 4.3a).

2 – Reflects staff redundancies and restructuring costs at Building Components & Distribution Australia, Coated & Industrial Products Australia and Corporate.

3 – The company has deferred the recognition of a tax asset totalling $73M in respect to tax losses generated during the year, in relation to the Company’s Australian operations. Australian Accounting Standards impose a stringent test for the recognition of a deferred tax asset where there is a history of recent tax losses. The company has deferred the recognition of any further tax asset for the Australian tax group until a return to taxable profits has been demonstrated. Unrecognised Australian tax losses are able to be carried forward indefinitely.

Reconciliation between reported NPAT and underlying NPAT1

27

+103+85

-224

Exchange rates

+4

Conversion costs

North Star

+5

Volume & mix

+145

Raw material costs

+461

Domestic prices

-165

Export prices

-207

FY2012 Other

-1

FY2013

Net spread improvement $89M

Raw material costs:Coal 241Iron ore 152Scrap & alloys 6External steel feed 120Net realisable value provision (34)Opening stock adjustments (43)Coating metals 20Other (1)

Notes: 1) Volume / mix based on FY2012 margins 2) Volume / mix based on 1H FY2013 margins

1

+65

+38

2H FY2013Other

+3

Exchange rates

-3

Conversion costs

-6

North Star

+1

Volume & mix

-47

Raw material costs

+130

Domestic prices

-28

Export prices

-23

1H FY2013

Conversion & other costs:Cost improvement initiatives 44Volume 8Escalation (32)One-off (22)Other (4)

Raw material costs:Coal 38Iron ore (7)Scrap & alloys 5External steel feed 27Net realisable value provision 24 Opening stock adjustments 46Coating metals (3)

BlueScope GroupUnderlying EBIT variances by item

Conversion & other costs:Cost improvement initiatives 223Volume (75)Escalation (91)One-off / discretionary 34Other (6)

2

Net spread improvement $79M

28

$M FY2012 FY2013 1H FY13 2H FY13Reported EBITDA (489) 368 204 164Adjust for other cash profit items 327 (24) (32) 8

Cash from operations (162) 344 172 172Working capital movement (inc provisions) 617 (31) (16) (15)

Gross operating cash flow 455 313 156 157Financing costs (109) (91) (36) (55)

Interest received 3 3 2 1

(Payment) / refund of income tax 1, 2 (81) (64) (44) (20)

Net operating cash flow 268 161 78 83Capex: payments for P, P & E and intangibles (230) (303) (129) (174)

Other investing cash flow 3 150 (7) - (7)

Net cash flow before financing 188 (149) (51) (98)Equity issues 576 - - -

Dividends (5) (3) (2) (1)

Transactions with non-controlling interests - 439 (69) 508

Net drawing / (repayment) of borrowings (719) (6) 103 (109)

Net increase/(decrease) in cash held 40 281 (19) 300(1) The BlueScope Steel Australian tax consolidated group is estimated to have carried forward tax losses, as at 30 June 2013, in

excess of $2.7Bn. There will be no Australian income tax payments until these losses are recovered.(2) $34M of tax paid following sale of Metl-Span was classified as tax payment in 1H reports; now reclassified to investing cash flow(3) Purchase cost of ASEAN minorities was classified as investing cash flow in 1H reports; now reclassified to financing cash flow

FY2013 $7M net outflow largely comprised of tax paid following sale of Metl-Span and

proceeds of sale of previously unrecognised intangible

FY2013 cash capex of $303M, of which $302M new capital commitments and$1M payment of existing commitments

1H adverse item predominantly due to classification of proceeds of sale of

previously unrecognised intangible assetas an investing cash flow (see ‘Other

investing cash flow’ below) – reversed from operating cash flow

Cash flow – solid core earnings improvement

Reflects cash flows associated with Coated Products JV establishment. Purchase cost of Malaysian minorities in 1H; 2H reflects

US$571M proceeds net of Thai minorities, taxes and fees

2H higher due to one-off costs of repurchase of U.S. Private Placement notes and issuance of US$300M unsecured notes

29

Total capital expenditure Working capital items1

302 229

398 365

FY2013FY2012FY2011FY2010

Includes Indonesian steel coating line expansion Approx $100M

growth capex

• Improved operating working capital position maintained since Port Kembla restructuring

$M

1,273 1,284 1,274

1,857 -583

Jun-2013Dec-2012Jun-2012Jun-2011$M

(1) Net working capital balances shown include receivables, inventory, payables (excluding capital & investing payables) and deferred income

Controlled capital expenditure and working capital

• Focused on prudent sustaining group capital expenditure (sustaining capex of around 60% of depreciation)

• Growth capital expenditure in FY2013 Expansion of global building solutions operations – establishment of

Xi’an plant in China ($46M in FY2013) Next Generation ZINCALUME® and COLORBOND® steel ($29M in

FY2013) Expansion of iron sands export business in New Zealand ($16M in

FY2013)• Expect FY2014 total capital expenditure to be similar to FY2013;

25-30% focused on growth projects

30

InventoryMovement from June 2012 driven by FX and higher volumes, partly offset by lower rates

+1,409 +1,435+1,412+109

Jun-13NRV adjustment movement

+15

FX

+73

Volume

-71

Rate / feed costs

+7

Dec 2012NRV adjustment movement

-11

FX

-10

VolumeRate / feed costs

-85

Jun 2012

Note: ‘RMS’ is raw materials (including externally sourced steel feed to BSL businesses)‘WIP’ is work in progress‘FGS’ is finished goods ‘Other’ is primarily operational spare parts

RM $258MWIP 532FG 466Other 153

RM $238MWIP 594FG 434Other 146

RM $234MWIP 527FG 521Other 153

31

Net debt ($M) Net debt / EBITDA2 Gearing (ND/ND+E)

200

148

1,068

743

384

FY2013FY2012

584

FY2011FY2010

Significant debt reduction largely driven by:• $600m equity raising• Working capital release from CIPA

restructureAlso benefited from favourable timing of year end cash flows of ~$200m

1,576 1,583

1,137

1,620

FY2013FY2012FY2011FY2010

Liquidity (undrawn facilities and cash, $M)

FY2013

0.4x

FY2013

3.2%

FY2012

9.2%

FY2011

19.5%

$148M net debt comprised of:• $662M gross debt,

less• $514M cash

(2) 30 June 2013 net debt to FY2013 underlying EBITDA

Strengthened balance sheet

(1) Net debt $584M excluding benefit of favourable timing of year end cash flows

1

32

Note: based on AUD/USD at US$0.9262 at 30 June 2013

Current estimated cost of facilities:

Approximately 6% interest cost on gross drawn debt; plus

commitment fee on undrawn part of Syndicated Bank Facility of 1.2%; plus

amortisation of facility establishment fees and the discount cost of long-term provisions of $12m pa (approx 50/50 mix; non-cash);

less: interest on cash.

324

675

54

86

10

87

2H1H2H1H2H

270

184

1H2H1H2H1H

NS BlueScope JV facilities (100%)US unsecured notesSyndicated Bank Facility

$675M December 2013 Syndicated Bank Facility tranche was cancelled in June 2013 at BlueScope’s election after completion of the NS BlueScope Coated Products JV transaction in March 2013 and issuance of US$300M unsecured notes in April 2013

Receivables securitisation program:

In addition to debt facilities, BSL has an undrawn receivables securitisation program

$150M maturing September 2014

Nil drawn of $675M committed

FY14 FY15 FY16 FY17 FY18

$184M drawn of $270M committed

Debt facilities maturity profile at 30 June 2013

33

Estimated impact on1H FY2014 EBIT A$M

Assumption

+/– US$25 / tonne movement in BlueScope’s average realised export HRC price 2

1¢ movement in Australian dollar / US dollar exchange rate 3

US$10 / tonne movement in coal costs 4

+/ – US$10 / tonne movement in iron ore costs 4

+/–

+/–

282

1021

1

(1) Assumed 1H FY2014 base exchange rate is US$0.95(2) The change in export HRC price assumes proportional effect on export products and flow on to domestic pipe and tube market. This does

not include the potential impact on Australian domestic coated product prices, as the flow on effect in the short term is less certain(3) The movement in the Australian dollar/US dollar exchange rate includes the impact on US dollar denominated export prices and costs,

restatement of US dollar denominated receivables and payables and the impact of translating the earnings of offshore operations to A$ Does not reflect impact on Australian domestic pricing.

(4) Coated & Industrial Products Australia costs

Indicative EBIT sensitivities for 1H FY2014

OUTLOOK & SUMMARY

35

• We expect to maintain Company performance and deliver a profitable 1H FY2014 (pre period-end NRV adjustments), however given uncertainty in domestic Australian demand we do not expect a 1H FY2014 outcome better than the 2H FY2013 outcome (subject to spread, FX and market conditions)

1H FY2014 outlook

36

• Broaden base of global customers• Leverage expansive operating footprint delivering an efficient cost base • IP and brands support our competitive market offer• Growth opportunities are capital light

Building Products• Drive NS BlueScope Coated Products joint venture and access new customers and

products• Continue to broaden channels to market

Building Solutions

BlueScope Australia & New Zealand

Hot Rolled ProductsNorth America

Balance Sheet

Mark

et F

irst F

ocus

• CIPA has achieved significant cost reductions; strongly leveraged to domestic demand recovery

• Examine ways to serve the market more efficiently; this may include small acquisitions close to existing core operations

• Expanding iron sands production and despatches in New Zealand

• Continuing very good performance with growth options being investigated

• Maintain strong balance sheet metrics

• Enhanced financial flexibility to invest in incremental growth opportunities

Enhanced financial flexibility to invest in growth

QUESTIONS & ANSWERS

ADDITIONAL INFORMATION

39

Sales and distribution facilitiesKey points

• Fielders manufactures a comprehensive range of roll-formed steel products that are supplied to commercial, industrial and domestic building contractors

• 12 sites across NSW, VIC, SA, WA, and NT

• Employs approximately 480 staff

Sales revenue split by market (FY2012) 1

Overview of Fielders

Product overview

Roofing & cladding

• Concealed fixed roofing• Roofing & walling• Curving; crank and smooth• Centenary carports and verandahs

KingFlor • Steel formwork

Rainwater goods

• Guttering• Rainheads

Other products

• Vents and cappings• Door frames and fencing systems

• Gawler• Noarlunga• Marion• Mile End

SA

• Geraldton• Wangara• O’Connor• Osborne Park• Bunbury

WA

• CampbellfieldVIC

• MintoNSW

• DarwinNT

55%

19%

9%

17%

Commercial roofing

Hardware

Other Residential

(1) 12 months to 30 June 2012, not adjusted for Queensland operations

40

Mills and distribution facilitiesKey points• Orrcon is a manufacturer, importer and distributor of steel

tube and pipe in Australia, including structural tubes, precision tubes, hot rolled structural steel and pipes

• 2 mills and 12 distribution facilities• Employs approximately 460 staff

Sales revenue split (FY2012) 1

Overview of Orrcon

Products

Structural tube

• Bare, primed, or galvanised coated electric resistance welded (ERW) steel CHS and RHS manufactured for structural purposes

• Primarily used in building, engineering and manufacturing applications

Precision tube

• Cold rolled, hot rolled tubing with zinc or aluminium coated mild steel (ACMS) tubing

• Typical applications include fencing, furniture, automotive, general engineering, sign posts and various others

Large pipe & tube (LPT)

• Used in construction, oil and gas,and major mining projects

Other products

• Hot rolled structural steel and plates• Reinforcing, building, fencing, and welding

products

• O’Sullivan’s Beach (mill)

• Gillman

SA

• Bibra Lake• Maddington• Malaga• Mandurah

WA

• KeysboroughVIC

• GlendenningNSW

• Salisbury (mill)• Toowoomba• Banyo• Bundaberg• Townsville• Cairns

QLD

53%

17%

15%

15%

Structural

Precision

Other

LPT

(1) 12 months to 30 June 2012

41

RevenueA$M FY12 1H13 2H13 FY13Coated & Industrial Products Australia 4,280 1,668 1,681 3,349Build Components & Dist Australia 1,486 720 655 1,376NZ and Pacific Steel Products 755 319 362 681Global Building Solutions 1,446 728 635 1,363Building Products ASEAN, NA & India 1,644 800 835 1,635Hot Rolled Products North America 0 0 0 0Intersegment, Corporate & Discontinued (1,008) (531) (589) (1,130)Total 8,603 3,704 3,579 7,274

Reported EBITA$M FY12 1H13 2H13 FY13Coated & Industrial Products Australia (726) 7 (52) (45)Build Components & Dist Australia (227) (10) (20) (30)NZ and Pacific Steel Products 65 2 40 42Global Building Solutions (6) 17 1 18Building Products ASEAN, NA & India 51 31 40 71Hot Rolled Products North America 62 33 34 67Intersegment, Corporate & Discontinued (39) (33) (38) (71)Total (820) 47 5 52

Underlying EBITDAA$M FY12 1H13 2H13 FY13Coated & Industrial Products Australia (151) 79 71 150Build Components & Dist Australia (27) 2 (10) (8)NZ and Pacific Steel Products 113 27 62 89Global Building Solutions 66 33 26 59Building Products ASEAN, NA & India 98 55 72 127Hot Rolled Products North America 62 33 34 67Intersegment, Corporate & Discontinued (62) (33) (32) (66)Total 99 196 223 418

Underlying EBITA$M FY12 1H13 2H13 FY13Coated & Industrial Products Australia (327) (6) (14) (20)Build Components & Dist Australia (46) (7) (18) (25)NZ and Pacific Steel Products 69 2 40 42Global Building Solutions 33 17 9 26Building Products ASEAN, NA & India 51 31 49 80Hot Rolled Products North America 62 33 34 67Intersegment, Corporate & Discontinued (66) (32) (35) (67)Total (224) 38 65 103

BlueScope GroupSummary of financial items by segment

42

Total steel despatchesA$M FY12 1H13 2H13 FY13Coated & Industrial Products Australia 3,544 1,248 1,367 2,615Build Components & Dist Australia 758 364 348 713NZ and Pacific Steel Products 580 261 317 578Global Building Solutions 588 306 246 552Building Products ASEAN, NA & India 1,257 657 687 1,344Hot Rolled Products North America 963 476 507 983Intersegment & Discontinued (936) (481) (549) (1,031)Total 6,754 2,831 2,923 5,754

Australian despatch summaryA$M FY12 1H13 2H13 FY13CIPA Domestic Despatches 1,991 903 888 1,791BCDA Domestic Despatches 746 358 339 697 - less interseg dom sales & other (425) (213) (213) (426)Australian Domestic Steel Sales 2,313 1,048 1,014 2,062- less despatches of third party product (1) (308) (143) (137) (280)BSL Steel sold to Aust to Domestic Custs 2,005 905 877 1,782- plus export despatches to external custs 1,131 132 189 321- plus export despatches to internal custs 433 219 300 519- less export sales of third party product (7) (5) (4) (8)Despatches of BSL Steel from Australia (to domestic & export customers) 3,560 1,251 1,362 2,613

BlueScope GroupDespatch summary by segment

(1) Primarily long products sold through Distribution business

43

Committed DrawnMaturity Local currency A$M A$M

Syndicated Bank Facility December 2015 A$675M A$675M -

US unsecured notes May 2018 US$300M A$324M A$324M

NS BlueScope JV facilities (100%)

- Corporate facilities Mar – Jul 2016 US$300M A$324M A$184M

- Thailand facilities Jul – Nov 2013 THB 2,500M A$87M -

- Malaysian facilities Apr 2014 MYR 30M A$10M -

Finance leases Various Various A$165M A$165M

Total $1,585M A$673M Note: assumes AUD/USD at 0.9262

In addition to debt facilities, BSL has a receivables securitisation program of $150M maturing September 2014 (undrawn at 30 June 2013) and other items in total debt of ($11M)

December 2013 Syndicated Bank Facility tranche was cancelled in June 2013 at BlueScope’s election after completion of the NS BlueScope Coated Products JV transaction in March 2013 and issuance of US$300M unsecured notes in April 2013

BlueScope GroupCommitted debt facilities as at 30 June 2013

44

$M 30 Jun 2012 31 Dec 2012 30 Jun 2013

Assets Cash 214 193 514Receivables * 995 971 1,097Inventory * 1,409 1,412 1,435Property, Plant & Equipment 3,296 3,225 3,420Intangible Assets 454 436 496Other Assets 366 376 369Total Assets 6,734 6,613 7,331

Liabilities Trade & Sundry Creditors * 1,008 842 995Capital & Investing Creditors 49 17 45Borrowings 598 692 662Deferred Income * 122 257 264Retirement Benefit Obligations 432 367 217Provisions & Other Liabilities 746 708 688Total Liabilities 2,955 2,883 2,871Net Assets 3,779 3,730 4,460

Note *: Items included in net working capital 1,274 1,284 1,273

BlueScope GroupBalance sheet

45

FY2012 FY2013 1H FY2012 2H FY2012 1H FY2013 2H FY2013Reconciliation of EBITDA and EBITEBITDA 2 Reported (489) 368 (270) (219) 204 164EBIT 2 Reported (820) 52 (435) (385) 47 5

Discontinued Business (gains)/losses (47)5 / (39)6 8 (9)5 / (5)6 (38)5 / (34)6 - 8Business Development 7 3 - 7 2 1Restructure / redundancies 412 32 363 49 5 27Asset sales 319 - 5 314 - -Asset Impairments (3) - - (3) - -Sale of prev. unrecognised intangible asset - (38) - - (38) -Steel Transformation Plan Advance (100) 46 (66) (34) 23 23

EBITDA 3 Underlying 1 99 418 23 76 196 223EBIT 3 Underlying 1 (224) 103 (137) (87) 38 64

Reconciliation of NPAT / (NLAT)NPAT / (NLAT) Reported (1,044) (84) (530) (514) (12) (72)

Discontinued Business (gains)/losses (4) 4 (6) (2) - 4Business Development 5 2 - 5 1 1Restructure / redundancies 288 20 254 34 4 17Asset impairments 315 - - 312 - -Asset sales (2) - 3 (2) - -Sale of prev. unrecognised intangible asset - (26) - - (26) -Steel Transformation Plan (70) 32 (46) (24) 16 16Borrowing Amendment Fees 6 9 6 - - 9Deferred Tax Asset Impairments 268 73 184 84 28 45

NPAT / (NLAT) Underlying 1 (238) 30 (136) (102) 10 20

EPS (¢) 4 Reported (234.6) (15.1) (159.4) (2.2)EPS (¢) 4 Underlying 1 (53.4) 5.3 (41.0) 1.8

Notes1. Management have provided an analysis of unusual items included in the reported IFRS financial information. These items have been considered in relation to their size and

nature, and have been adjusted from the reported information to assist readers to better understand the financial performance of the underlying business in each reporting period. These adjustments are assessed on a consistent basis from period to period and include both favourable and unfavourable items. Non-IFRS financial information whilst not subject to audit or review has been extracted from the full year financial report which has been audited by our external auditors.

2. EBIT = EBITDA - Depreciation & Amortisation 3. Underlying adjustments are the same for both EBITDA & EBIT 4. Earnings per share (EPS) reflects reported and underlying NPAT / (NLAT) divided by average shares on issue for the period

5. EBITDA adjustment6. EBIT adjustment

BlueScope GroupReconciliation of reported to underlying earnings by nature of item ($M)

46

FY2012 FY2013 1H FY2012 2H FY2012 1H FY2013 2H FY2013Coated & Industrial Products Australia

Reported EBIT (726) (45) (463) (263) 7 (52)Restructure / redundancies 363 16 347 16 2 14Asset Impairments 136 - - 136 - -Sale of previously unrecognised intangible asset - (38) - - (38) -Steel Transformation Plan Advance (100) 46 (66) (34) 23 23Underlying EBIT 1 (327) (20) (182) (145) (6) (15)

Building Components & Distribution AustraliaReported EBIT (227) (30) (30) (197) (10) (20)Restructure / redundancies 14 5 3 11 3 2Asset Impairments 167 - - 167 - -Profit on sale & leaseback of properties - - - - - -Underlying EBIT 1 (46) (25) (27) (19) (7) (18)

New Zealand Steel & Pacific Steel ProductsReported EBIT 65 42 34 31 2 40Restructure / redundancies 4 - - 4 - -Underlying EBIT 1 69 42 34 35 2 40

Global Building SolutionsReported EBIT (6) 18 11 (17) 17 1Asset impairment / (write back) 11 - - 11 - -Restructure / redundancies 29 8 13 15 - 8Underlying EBIT 1 33 26 24 9 17 9

Building Products ASEAN, North America & IndiaReported EBIT 51 71 17 34 31 39Restructure / redundancies 3 9 3 - - 9Asset sales (3) - - (3) - -Asset Impairments - - - - - -Underlying EBIT 1 51 80 21 31 31 48

Hot Rolled Products North AmericaReported & Underlying EBIT 1 62 67 20 42 33 34

Corporate & intersegmentReported EBIT (78) (71) (29) (49) (35) (36)Restructure / redundancies 5 1 1 3 2 -Business Development Costs 7 3 - 7 0 2Underlying EBIT 1 (66) (67) (27) (39) (33) (34)

Discontinued BusinessesReported EBIT 39 0 5 33 - -Restructure / redundancies (39) - (5) (33) - -Underlying EBIT 1 - - - - - -

Total GroupReported EBIT (820) 52 (435) (385) 47 5Underlying EBIT 1 (224) 103 (137) (87) 38 64

Note:1. Management have

provided an analysis of unusual items included in the reported IFRS financial information. These items have been considered in relation to their size and nature, and have been adjusted from the reported information to assist readers to better understand the financial performance of the underlying business in each reporting period. These adjustments are assessed on a consistent basis from period to period and include both favourable and unfavourable items. Non-IFRS financial information whilst not subject to audit or review has been extracted from the full year financial report which has been audited by our external auditors.

BlueScope GroupReconciliation of reported to underlying earnings by segment ($M)

47

• PKSW (part of the CIPA division), commenced operations in the 1920s and from 1999 to 2012 operated two blast furnaces– 50%-60% of production was typically sold into the domestic Australian market where BlueScope had ~70-80% market share of flat steel products– The remaining 40%-50% was sold into export markets, in particular to Asia and North America

• From FY2009 to FY2012 steel spreads in A$ terms decreased meaningfully due to:– Steel prices (set in US$ or import parity pricing) decreased– A$ rose significantly against US$ (FY2012 average rate of A$1.03/US$ vs FY2009 average rate of A$0.74/US$)– Raw material prices increased significantly

• As a result, in October 2011 BlueScope shut down one blast furnace at the Port Kembla Steel Works to substantially exitthe export market

Segment 2005 2006 2007 2008 2009 2010 2011 2012 05-12 avg 09-12 avg FY2013Global Building Solutions 14 39 58 103 61 19 19 66 47 41 59Building Products ASEAN, Nth Am, India 92 70 100 151 (6) 155 127 98 98 94 127Building Components & Distribution Aust 21 32 13 117 49 35 5 (27) 31 16 (8)New Zealand and Pacific Steel Products 216 132 119 115 117 107 122 113 130 115 89Hot Rolled Products North America 193 167 155 105 (58) 61 72 62 95 34 67Corporate & Group (53) (84) (41) (62) (121) (66) (66) (67) (70) (80) (61)Inter-segment, discontinued and other (54) 15 1 (118) 127 (22) 17 5 (4) 32 (5)Underlying EBITDA pre-CIPA 429 371 405 411 169 289 296 250 328 251 268Coated & Industrial Products Australia 1,427 756 969 1,207 337 305 (56) (151) 599 109 150Total Underlying EBITDA 1,856 1,127 1,374 1,618 506 594 240 99 927 360 418

• Long track record of positive underlying EBITDA in key business segments until CIPA impacted in FY2011 and FY212

CIPA impacted by export losses Substantial long term positive underlying EBITDA excluding CIPA

($M, years ended 30 June)

BlueScope GroupBackground to the CIPA / Port Kembla restructuring

48

Key segment financial itemsA$M FY12 1H13 2H13 FY13Revenue 1,644 800 835 1,635Underlying EBITDA 98 55 72 127Underlying EBIT 51 31 49 80Reported EBIT 51 31 40 71Capital & investment expenditure 43 5 39 44Net operating assets (pre-tax) 870 859 936 936Total despatches (kt) 1,257 657 687 1,344

Despatches by business'000 tonnes FY12 1H13 2H13 FY13Thailand 325 180 173 353Indonesia 208 100 119 219Malaysia 159 74 78 152Vietnam 111 58 65 124North America 431 220 216 436India 56 41 49 90Other / eliminations (33) (16) (13) (30)Total 1,257 657 687 1,344

Revenue by business Underlying EBIT by businessA$M FY12 1H13 2H13 FY13Thailand 27 21 27 48Indonesia 10 3 7 10Malaysia 28 12 15 27Vietnam 9 6 6 12North America (2) 1 3 4India (15) (8) (6) (14)Other / eliminations (6) (4) (3) (7)Total 51 31 49 80

A$M FY12 1H13 2H13 FY13Thailand 392 207 210 417Indonesia 288 126 152 278Malaysia 221 103 113 216Vietnam 139 69 79 148North America 641 309 299 608India 0 0 0 0Other / eliminations (37) (14) (18) (32)Total 1,644 800 835 1,635

Building Products ASEAN, North America & IndiaFinancial summary

49

+80+18

+51

FY2013Other

-1

Exchange rates

+8

Conversion & other costs

-9

Volume & mixRaw material costs

+113

Domestic prices

-95

Export prices

-5

FY2012

Conversion & other costs:Cost improvement initiatives 9Escalation (14)One-off / discretionary (5)Other 1

+21

+5+4

+42

+31+1

1H FY2013 2H FY2013Other

-2

Exchange ratesConversion & other costs

Volume & mix

+2

Raw material costs

Domestic prices

-20

Export prices

Building Products ASEAN, North America & IndiaUnderlying EBIT variance

Gross margin improvement $13M

Gross margin improvement $2M

50

Key segment financial itemsA$M FY12 1H13 2H13 FY13Revenue 1,446 728 635 1,363Underlying EBITDA 66 33 26 59Underlying EBIT 33 17 9 26Reported EBIT (6) 17 1 18Capital & investment expenditure 24 23 45 68Net operating assets (pre-tax) 510 505 596 596Total despatches (kt) 588 306 246 552

Despatches by business'000 tonnes FY12 1H13 2H13 FY13North America Buildings 197 112 99 211Buildings Asia 253 121 90 211Building Products China 176 91 73 164Other / eliminations (38) (18) (16) (34)Total 588 306 246 552

Revenue by business Underlying EBIT by businessA$M FY12 1H13 2H13 FY13North America Buildings (2) 13 1 14Buildings Asia 30 0 4 4Building Products China 19 12 10 22Other / eliminations (14) (8) (6) (14)Total 33 17 9 26

A$M FY12 1H13 2H13 FY13North America Buildings 665 354 323 677Buildings Asia 445 204 164 368Building Products China 241 123 99 222Other / eliminations 95 47 49 96Total 1,446 728 635 1,363

Global Building SolutionsFinancial and despatches summary

51

Net margin improvement $6M

+26+34+33

-50

FY2012 FY2013Provision adjustment

-8

Other

-1

Volume & mix

-4

Conversion & other costs

0

Raw material costs

Domestic prices

+56

One-off prior period (FY2005-FY2009) provision adjustment in 1H FY2013

Net margin improvement $7M

+8 +19

+9

+25

+17

+1

Other 2H FY2013Volume & mix

-24

Conversion & other costs

+2

Raw material costs

Domestic prices

-14

Provision adjustment

in 1H

1H FY2013

One-off prior period (FY2005-FY2009) provision adjustment in 1H FY2013

Global Building SolutionsUnderlying EBIT variance

52

Key segment financial itemsA$M FY12 1H13 2H13 FY13Revenue 4,280 1,668 1,681 3,349Underlying EBITDA (151) 79 71 150Underlying EBIT (327) (6) (14) (20)Reported EBIT (726) 7 (52) (45)Capital & investment expenditure 110 56 89 145Net operating assets (pre-tax) 2,003 1,973 2,068 2,068Total steel despatches (kt) 3,544 1,248 1,367 2,615

Despatches breakdown'000 tonnes FY12 1H13 2H13 FY13Hot rolled coil 634 245 261 506Plate 302 135 115 250CRC, metal coated, painted 1,054 523 512 1,035Domestic sub-total 1,990 903 888 1,791

Slab 218 0 2 2Hot rolled coil 877 259 349 608Plate 82 12 5 17CRC, metal coated, painted 377 74 123 197Export sub-total 1,554 345 479 824

Total steel despatches 3,544 1,248 1,367 2,615

Export coke despatches 515 359 352 711

Coated & Industrial Products AustraliaFinancial and despatch summaries

53

Net spread improvement $70M

-20

-327

FY2013Other

0

Exchange rates

-4

Conversion costs

+71

Volume

+133

Raw material costs

+322

Domestic prices

-98

Export prices

-117

FY2012

Conversion & other costs:Cost improvement initiatives 156Higher unit costs on lower volumes (89)Escalation (39)One-off 1 52Other (9)

Raw material costs:Coal 240Iron ore 152Scrap & alloys 6Net realisable value provisions (39)Opening stock adjustment (43)Coating metals 6

Reduced volume of loss making exports

(1) Predominantly favourable workers compensation settlement

-14-6

Other

+1

Exchange rates

-18

Conversion & other costs

-26

Volume

-35

Raw material costs

+83

Domestic prices

-17

Export prices

+4

1H FY2013 2H FY2013

Raw material costs:Coal 27Iron ore (7)Scrap & alloys 5Net realisable val. prov. 16Opening stock adjustment 46Coating metals (5)Other 1

Conversion & other costs:Cost improvement initiatives 19Volume (1)Escalation (10)One-off (30)Other (4)

Mainly due to higher export volume than 1H FY2013

Coated & Industrial Products AustraliaUnderlying EBIT variance

Net spread improvement $107M

54

Domestic

Export

Jun-2013

1,367

888

479

Dec-2012

1,248

903

345

Dome

stic

Expo

rt

2H FY2013 Product Mix

CRC Metal Coated Painted OtherPlateHRC

FY2013 Product Mix

Coated & Industrial Products AustraliaDespatch mix (kt)

55

Raw materials

FreightDepreciation

Conversion &overhead

Non-steel businesscosts

FY2013

A$3,369m Conversion & Overhead Components (in orderof value):• Direct labour• Repairs & maintenance• Sales & administration• Services & contractors• Utilities• Consumables• Other (includes $36m one-

off workers compensation benefit)

Non-steel business costsrelate to:• Export coke sales• Cold ferrous feed to Arrium

(scrap pool)• By-products (eg. Tar, BTX,

Sulphate)

Raw materials(in order of value):• Iron ore• Coal• Scrap• Fluxes and alloys• Paint• Zinc• Aluminium

Freight (in order of value):• Domestic despatches• Export despatches• Internal (eg. Springhill &

Western Port to Service Centres)

Steel business

Non-steel business

FY2013

A$3,349m

Underlying costs (to EBIT line)Revenue

• Export coke• Cold ferrous• By-products

Indicative ‘recipe’ of raw materials per output steel tonne:• 1.24t iron ore fines (sintering)• 0.26t lump ore (into BF)• 0.57t hard coking coal (into BF)• 0.15t PCI (into BF)• 0.18t scrap (into BOS), of which

60% sourced internally

Coated & Industrial Products AustraliaRevenue and underlying costs FY2013

56

$0

$100

$200

$300

$400

$500

$600

$700

$800

Jan-10 Jan-11 Jan-12 Jan-13Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

East Asia HRC price (US$/t) and indicative steelmaker HRC spread (A$/t)Spread: SBB East Asia HRC price less cost of 1.5t iron ore fines and 0.71t hard coking coal

Source: SBB, CRU, Platts, TSI, Reserve Bank of Australia, BlueScope Steel calculations

Notes on calculation:• ‘Indicative steelmaker HRC spread’ representation based on simple input blend of 1.5t iron ore fines and 0.71t hard coking coal per output tonne of steel. Chart is not a specific representation of BSL realised export HRC spread (eg

does not account for iron ore blends, realised steel prices etc), but rather is shown primarily to demonstrate movements from period to period arising from the prices / currency involved. ‘Indicative spread with pricing lags’ includes three month HRC price lag and two month raw material prices lags

• Indicative iron ore pricing: 62% Fe iron ore fines price assumed. Industry annual benchmark prices up to March 2010. Quarterly index average prices lagged by one quarter from April 2010 to March 2011; 50/50 monthly/quarterly index average from April 2011 to December 2012. Monthly thereafter. FOB estimate deducts Baltic cape index freight cost from CFR China price

• Indicative hard coking coal pricing: low-vol, FOB. Industry annual benchmark prices up to March 2010; quarterly prices from April 2010 to March 2011; 50/50 monthly/quarterly pricing thereafter

FY2009 FY2010 FY2011 FY2012 FY2013 1H FY13 2H FY13Indicative steelmaker HRC spread (US$/t) 294 365 271 276 277 273 281Indicative steelmaker HRC spread (A$/t) 368 414 275 267 270 263 277Indicative spread with pricing lags (A$/t) 467 398 290 261 278 287 269A$ / US$ FX 0.74 0.88 0.99 1.03 1.03 1.04 1.02

Indicative SteelmakerSpread (A$/t)

SBB East Asia HRC (US$/t)

Indicative spread withpricing lags (A$/t)

Coated & Industrial Products AustraliaSpread continues to be a major determinant of segment profitability

57

Quarterly number of Australian residential construction starts (total new houses) to March 2013 1

Source: Australian Bureau of Statistics. Series ID: 8752.0 Building Activity, Australia. Table 33: Number of Dwelling Unit Commencements by Sector, Australia.

(1) Based on total number of dwelling units – total houses, on seasonally adjusted basis. Excludes multi-dwelling commencements.House definition: A detached building primarily used for long term residential purposes consisting of one dwelling unit. Includes detached residences associated with a non-residential building, and kit and transportable homesDwelling: A dwelling unit is a self-contained suite of rooms, including cooking and bathing facilities and intended for long-term residential use. Units (whether self-contained or not) within buildings offering institutional care, such as hospitals, or temporary accommodation such as motels, hostels and holiday apartments, are not defined as dwelling units. The value of units of this type is included in non-residential building.

(Number per quarter)

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Jun 12

Jun 11

Jun 10

Jun 09

Jun 08

Jun 07

Jun 06

Jun 05

Jun 04

Jun 03

Jun 02

Jun 01

Jun 00

Jun 99

Jun 98

Jun 97

Jun 96

Jun 95

Jun 94

Jun 93

Jun 92

Jun 91

Jun 90

Jun 89

Jun 88

Jun 87

Jun 86

Jun 85

Coated & Industrial Products Australia Australian residential construction starts

58

Supplier Term Approximate Volume (p/a) Pricing Basis

BHP Billiton 10 years from1 July 2009 Up to 4.18Mt1 lump & fines Linked to average monthly index in the month of

shipment

New Zealand Steel Short term contracts 0.15Mt iron sands Linked to average index 15 days prior to shipment

1) Reflects agreed reduced annual volumes post closure of No.6 Blast Furnace at Port Kembla

Supplier Term Product / Approximate Volume (p/a) Pricing Basis

BHP Billiton(Illawarra Coal)

30 years from1 July 2002

Hard coking coal;minimum volume linked to blast furnace requirements

Market based pricing linked to BHP Billiton sales to contract customers

Peabody Energy Until 31 March 2014 PCI Coal; 300-400Kt1 Agreed quarterly pricing

Various suppliers for production of export coke

Short term contracts Coking coal as required Agreed monthly & quarterly pricing

Iron

ore

Meta

llurg

ical c

oal

Coated & Industrial Products AustraliaSupply and pricing of iron ore and met coal to Steelworks

59

Process Current Duties1

Hot Rolled Coil(Anti-Dumping)

• Preliminary Affirmative Determination (PAD) issued Oct 2012; Minister sign off Dec 2012

• Following a further review, in July 2013 the Anti-Dumping Commission announced changes to further the strengthen an element of duty calculation

• Interim Dumping Duties (IDD) rates:– Japan 0-7.5%– Korea 2.6-11.8%– Malaysia 15.4%– Taiwan 2.6-8.2%

Galvanised steel & aluminium / zinc (AlZn)

coated steel(Anti-Dumping)

• PAD issued Feb 2013

• Attorney General sign-off released 5 Aug 2013

• Galv IDD rates: China 6.8-62.9%; Korea 0-28.5%; Taiwan 0-8.6%

• AlZn IDD rates: China 5.5-19.3%; Korea 0-7.7%

Galvanised & AlZn coated steel (Countervailing – China)

• PAD issued May 2013

• Attorney General sign-off released 5 Aug 2013

• Galv rates: 0-22.8%• AlZn rates: 0-21.7%

(duties are not cumulative on top of antidumping duties, no double counting)

Plate(Anti-Dumping & Countervailing)

• PAD issued Jul 2013

• Minister decision due mid Oct 2013

• Interim Dumping Duties (IDD) rates:– Japan 14.3%– Korea 0-20.6%– Indonesia 8.6-19.0%– China 0-26.0%

1) Duties applicable to some, but not all exporters

Coated & Industrial Products AustraliaProgress on challenging unfair trade and dumping

60

Key segment financial itemsA$M FY12 1H13 2H13 FY13Revenue 1,486 720 656 1,376Underlying EBITDA (27) 2 (10) (8)Underlying EBIT (46) (7) (18) (25)Reported EBIT (227) (10) (20) (30)Capital & investment expenditure 6 3 8 11Net operating assets (pre-tax) 329 324 322 322Total despatches (kt) 758 364 349 713

Building Components & Distribution AustraliaFinancial summary

Despatches breakdown'000 tonnes FY12 1H13 2H13 FY13Domestic despatches 747 358 339 697Export despatches 11 6 10 16Total steel despatches 758 364 349 713

61

Gross margin reduction $(5)M

Gross margin improvement $14M-25

-46

FY2013Other

0

Conversion costs

+16

Volume & mix

-9

Raw material costs

+55

Domestic prices

-41

FY2012

-18

-7

2H FY2013Other

+1

Conversion costs

+1

Volume & mix

-8

Raw material costs

+18

Domestic prices

-23

1H FY2013

Building Components & Distribution AustraliaUnderlying EBIT variance

62

Key segment financial itemsA$M FY12 1H13 2H13 FY13Revenue 755 319 362 681Underlying EBITDA 113 27 62 89Underlying EBIT 69 2 40 42Reported EBIT 65 2 40 42Capital & investment expenditure 42 19 37 56Net operating assets (pre-tax) 296 339 467 467Total steel despatches (kt) 580 261 317 578

New Zealand Steel & Pacific Steel ProductsFinancial summary

Despatches breakdown'000 tonnes FY12 1H13 2H13 FY13Domestic despatches 247 125 130 255Export despatches 333 136 187 323Total steel despatches 580 261 317 578

Export iron sands despatches 1,140 831 870 1,701

63

+42+18

+7

+69

Export prices

-29

FY2012 FY2013Other

-2

Exchange rates

-10

Conversion costs

Volume & mixRaw material costs

+4

Domestic prices

-15

Impact of lower global steel prices and NZD/USD exchange rate (influencing both domestic and export prices), combined with fixed cost of iron sands extraction. Partly offset by coating metal purchase prices

+40

+19

+10

+2

2H FY2013Other

+2

Exchange rates

0

Conversion & other costs

Volume & mixRaw material costs

+20

Domestic prices

-5

Export prices

-8

1H FY2013

New Zealand Steel & Pacific Steel ProductsUnderlying EBIT variance

Net spread improvement $7M

Net spread reduction $(40)M

64

317

Jun-2013

Export

Domestic 130

187

Dec-2012

261

125

136

New Zealand Steel & Pacific Steel ProductsSteel despatch mix (kt)

Dome

stic

Expo

rt

2H FY2013 Product Mix

CRC Metal Coated Painted OtherPlateHRC

FY2013 Product Mix

65

Iron Sands Exports Taharoa (57% Fe) and Waikato North Head (58.5% Fe)

iron sands mined and concentrated on site Taharoa concentrate is slurry pumped to a buoy 3km

offshore to a dedicated slurry vessel and shipped to customers in China and Japan

FY2013 volume of 1.7Mt, 49% higher than FY2012 through larger Taharoa vessel and despatches from Waikato North Head

2H FY2013 volume of 870Kt, improved on1H FY2013 through increase in despatches from Waikato North Head

Expansion is on track to deliver at least a 2.7Mtpa despatch rate, with second ship servicing Taharoa mine currently anticipated to commence during CY2015

870831674

466352

467460467351351

461415

2H FY081H FY08 2H FY132H FY101H FY102H FY091H FY09 1H FY132H FY121H FY122H FY111H FY11

Iron sands export volumes (kt)

Vanadium Slag Vanadium production was up 6% on 1H FY2013

benefitting from increased steel production and process improvement initiatives.

2H FY2013 sales contained V2O5 at 2.34M lbs vs1H FY2013 2.32M lbs

New Zealand Steel & Pacific Steel ProductsNon-steel product sales

FY2013 Financial Results Presentation

19 August 2013

Paul O’Malley, Managing Director and Chief Executive OfficerCharlie Elias, Chief Financial Officer

BlueScope Steel Limited. ASX Code: BSL