22nd January 2003

File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template

Australian Distribution & SolutionsInvestor Site Visit – WestallKeith MitchelhillChief Executive – Australian Distribution & SolutionsNovember 2009

2

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, BSL DOES NOT ACCEPT ANY OBLIGATION TO CORRECT OR UPDATE THEM. THIS PRESENTATION DOES NOT TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR INVESTOR.

TO THE FULLEST EXTENT PERMITTED BY LAW, BLUESCOPE STEEL LIMITED 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.

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

• 77 sites

• 1,300 employees

• Products include Plate, Tube, Structural Steel, Merchant Bar, Reinforcing Steels

• Steel processing capability

• Westall is the major Victorian Distribution Centre

• 100 employees

• Products include Hot Rolled, Cold Rolled, Metallic Coated, Stainless, Aluminium

• Processing / Slitting / Shearing

• 38 sites• 1,200 employees• Products include

roofing, walling, guttering, rainwater goods, fencing

• Mobile Roll forming, supply / install

• Comprises Urban Water, Pioneer Water, Highline, Buildings

• 17 sites

• 400 employees

• Products include commercial & urban water tanks, buildings and building facades

• 6 sites

• 500 employees

• Slitting, shearing, warehousing & despatch, contract Services (predominantly for internal customers)

EmergingBusiness Sheet & Coil

ProcessingServices

• 5 sites

Note - Size depicts relative revenue base, except for Sheet & Coil processing services (cost recovery only)

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Westall Distribution Facility,Westall Distribution Facility,Westall VictoriaWestall Victoria

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Westall – History/Activities

• 2001 Email Metals split between Smorgon Steel and Onesteel

• 2003 Site Redevelopment – previously 4 sites• Jan 2004 Bar Picker commissioned

– unique to Southern Hemisphere• May 2004 Official Opening• August 2007 Bluescope acquisition

History

Activities• Store and break-bulk steel plate, tube, structural,

merchant bar and aluminium products.• Value add through pre-processing all products• Sell directly to 2,000+ account customers• Supply 17 regional branches throughout Victoria

and Tasmania

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Westall - Overview

• 3 Warehouses – Flat Products, – Long Products– Metalcorp

• 40,000 sq mtrs• 28,000 tonnes stock-holding capacity • 158 employees • 5 x 24 hour operation (to meet

customer requirements)

Metalcorp Long Products

Flat ProductsWe are here

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Westall - Flat Products Warehouse

• Products– Plate– Heavy Round– Pipes & Fittings

• Warehouse size 15,000 sq metres

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Westall - Long Products Warehouse

• Products– Merchant Bar– Tubular– Pipe– Structural

• Warehouse size 24,000 sq metres• Fully automated picker

– 1,620 locations– 6,500 tonne capacity

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Processing Solutions

Processing solutions provided include:• Plate profiling• Structural drilling• Structural flame cutting

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Australian Distribution & Australian Distribution & SolutionsSolutions

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SafetySafety

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Safety performance has improved driven by improvements in Distribution since acquisition, but the journey continues

Lost Time Injury Frequency Rates - AD&S

2.3 3.0 2.5 2.41.11.0

2.43.9

16.7

8.2

5.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

Oct

Medical Treatment Injury Frequency Rates - AD&S

25.721.2 19.0 18.9

36.2

60.766.8

32.4 28.6

12.2 10.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

Oct

Note: • Contractor data included from FY07 for Distribution• BSL acquired Distribution in Aug 2007; • Business restructure in Nov 07 led to creation of AD&S indicated by purple colour• Emerging Business began in Sep 03

Highlights • Continued safety improvement in Distribution & Emerging

Businesses from alignment to BlueScope safety standards• First ever LTI & MTI free month in August 2009

AD&S

Lost Time Injury Frequency Rates - Distribution

3.4 4.4 3.7 2.9

7.58.2

21.7

5.73.3

0.4 0.40.0

5.0

10.0

15.0

20.0

25.0

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

Oct

Medical Treatment Injury Frequency Rates - Distribution

38.331.3 30.9

26.6

12.713.3

38.236.5

47.6

59.8

37.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

Oct

Distribution

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Australian Distribution & SolutionsAustralian Distribution & SolutionsOverviewOverview

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The role & objectives of AD&S within BlueScope include

– The generation of positive cash flows and profits, achievement of hurdle rates of return and pull through tonnes to benefit the integrated chain

– To achieve this, AD&S must

• Be a low cost steel distribution channel to market

• Ensure ongoing access to competitively priced steel products (vs. imports and spot markets)

• Effectively manage inventories and the supply chain

• Be an market leading processor / value adder

• Deliver consistent service against customer expectations

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Some changes have been made to the AD&S organisation structure to more closely align to strategic objectives

Metals Dist'n Sheet Metal Supplies Building Products Highline BlueScope Buildings - Metro Impact Steel The Roofing Centre Pioneer Water Tanks Permalite - Regional Urban Water Metalform BH Tanks (US) FacadesLaser Dynamics Ranbuild Remote BuildingsPipeline Supplies Advanced FencingMetalcorp Kiteley

GM Lysaght

Greg Robinson

GM HRCarmelo Aiello

GM FinanceTony Joyce

GM Supply Andrew Bray

GM Distribution

Dean Mehmet

GM SMS &Urban WaterLige Donald

CE AD&SKeith Mitchelhill

GM HSEKristie Keast

GM Highline/Pioneer

Alan Tink

GM Buildings

Michael Meehan

GM S&C Proc Services

Mark Cowley

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The AD&S business cost base is characterised by a high proportion of Material Cost.

Substantial cost reductions have been achieved in Employee and Other coststo “right size” the business in response to lower volumes.

AD&S Cost Drivers

Material Costs, 75%

All other Costs, 25%

Material Costs All other Costs

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Inventory days are at target levels

Note: Inventory Days for Distribution, SMS and Lysaght only

Cash generation during the past 16 months has been very strong, throughrigorous management of Working Capital and Capex spend

AD&S Inventory

-

20

40

60

80

100

120

Jun-

08

Jul-0

8

Aug-

08

Sep-

08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr-

09

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep-

09

Inve

ntor

y Da

ys

Inventory Days

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Market UpdateMarket Update

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AD&S market activity is improving but off a low base

• Market activity bottomed in the March/April 2009 period, with a slow recovery now being experienced off a very low base

• Government Stimulus is starting to gain traction

• Housing approvals have improved driven by first home buyers

• Non-residential building approvals continue to decline

• Major resources development projects are substantially being fabricated offshore (eg: Gorgon)

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Having recently stabilised, selling prices are expected to come under pressure from a strong AUD

• A strong AUD reduces the cost of imported product for our competitors• The impact is mitigated in times of low availability from overseas mills• We are currently seeing strong import offers driven by stronger A$ which is

likely to put pricing pressure on our products for March-2010 quarter• AD&S is continually revisiting stock holdings to mitigate the downside impact of

lower selling pricesCRU Steel Price Index

0

50

100

150

200

250

300

350

Sep-

04

Jan-

05

May-

05

Sep-

05

Jan-

06

May-

06

Sep-

06

Jan-

07

May-

07

Sep-

07

Jan-

08

May-

08

Sep-

08

Jan-

09

May-

09

Sep-

09

Jan-

10

May-

10

Sep-

10

CRUspi Global - index values CRUspi Flats - index valuesCRUspi Longs - index values CRUspi Asia - index values

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SummarySummary

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Summary

• A unrelenting focus on safety

• Challenging market conditions anticipated for early 2010– Imports– Rate of improvement in economy– Margin management

• Focus on– An efficient cost base, including procurement– Working capital management, in particular inventory– Improving sales volumes– Managing expected selling price fluctuations

22nd January 2003

File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template

Australian Distribution & SolutionsInvestor Site Visit – WestallKeith MitchelhillChief Executive – Australian Distribution & SolutionsNovember 2009

24

Supporting InformationSupporting Information

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The AD&S footprint

Lysaght

Sheet & Coil Processing Services

Sheet Metal Supplies

Bluescope Distribution

KEY

Acacia Ridge

Eagle Farm

DandenongSunshine

Forrestfield

Bluescope Water

KeysboroughSurrey Hills

St MarysTaren Point

StapyltonOrmeau

PadstowChullora

BellevueMalagaMandurahWelshpool

DandenongLyndhurstDevonport

Bega

Bomaderry(Nowra)

Batemans Bay

Acacia RidgeCapalabaEagle FarmKawanaNorthgateOxleyWoodridge

Albany

Albury

ArcherfieldCarole ParkChinderahCoolumRocklea

Armidale

Arndell ParkBelmontCardiffChulloraEmu PlainsHamiltonSmithfield

AuburnCardiffWest GosfordSt Marys

BalcattaKewdale

Ballarat

Bathurst

Bendigo

BraesideSunshine

Burnie

Bunbury

Bundaberg

Cairns

CampbellfieldGeelong

Charters Towers

Coffs Harbour

DandenongGeelongWestall

Darwin

Dubbo

Elizabeth Ottoway

Emerald

Esperance

Forrestfield

Geraldton

GillmanWingfield

Gladstone

Hobart

Horsham

Kalgoorie

Kingaroy

Launceston

Lismore

Mackay

Mareeba

Mildura

Morwell

Motto Farm

Mount Isa

Orange

Port Macquarie

Portland

Queanbeyan

Rockhampton

Roma

Shepparton

Tamworth

Toowoomba

Townsville

Wagga Wagga

Warrnambool

Warwick

Wingfield

WodongaSites 143Employees 3,500Active Customers >20,000

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AD&S Brands

22nd January 2003

File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template

Australian Distribution & SolutionsInvestor Site Visit – WestallKeith MitchelhillChief Executive – Australian Distribution & SolutionsNovember 2009