1H FY2018 Financial Results Presentation

26 February 2018

Mark Vassella, Managing Director and Chief Executive OfficerCharlie Elias, Chief Financial Officer

BlueScope Steel Limited. ASX Code: BSLABN: 16 000 011 058

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.

1H FY2018 HEADLINES

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, Australian operational restructure in 2012 and Pacific Steel, Fielders and Orrcon from July 2015Note: (1) The MTIFR baseline was reset from 4.4 to 6.3 due to changes in calculation method

1

4.75.65.14.65.35.75.86.35.15.76.46.86.69.38.39.4

12.4

17.0

21.9

29.1

47.1

52.2

60.0

080504 0702 030100 0699 09 161413121110 15 189896 97

22.4

95 17

0.50.80.60.60.90.60.90.70.90.90.90.60.80.91.61.8

2.83.5

4.13.5

4.8

8.0

14.0

16.0

1211 16151413 17 180807 09030201 04 0600 05 109997 989695

Medically treated injury frequency rate

Safety: improving global performance so far in FY2018

Years ended 30 June Years ended 30 JuneYTD YTD

5

A strong finish to the half year; delivered $517M underlying EBIT

Underlying EBIT

Underlying EBIT return on invested capital

Reported NPAT

$516.8MSimilar to 2H FY2017Includes $32.1M one-off benefit1 from settlement of historical coal supply dispute

16.8% Third successive half year above 15%

$441.2M23% improvement on 1H FY2017One-off benefits contributed $84.2M2

Figures shown are for the six months ended 31 Dec 2017. Underlying results are provided to assist readers better understand the underlying financial performance; refer to page 58 for information on the adjustments from reported financial information.

Notes: (1) cash settlement and reversal of prior year provisions(2) one-off tax benefit relating to the recently announced U.S. tax reform ($52.1M) and one-off benefit from settlement of historical coal supply dispute ($32.1M)

6

Solid balance sheet position and ongoing capital management

Free cash flow(Operating cash flow less capex)

Net debt

Capital management

$146.2MLower due to seasonality of working capital$609.3M for CY2017

$262.1M

Down 51% on31 Dec 2016Up $30M on30 June 2017

Leverage 0.2xInterest cover 13.9xPost $171M of buy-backs & dividends

Announced framework in February 2017

6.0cps interim dividend14% franked

Note: (1) underlying EBIT divided by net finance costs

1

$148M buy-back during 1H FY18; $150M extension announced

7

Underlying EBIT by segment – BlueScope benefits from a diversified portfolio

Australian Steel Products$261.7M 8%• Better market demand and volumes• Benefit of one-off coal supply dispute settlement $32M• Headwinds from higher energy costs

New Zealand & Pacific Steel$41.0M 201%1

• Better steel prices• Improved productivity

Building Products ASEAN, Nth Am & India

$93.3M 16%• India and Indonesia improved• Soft demand in projects segment in South East Asia

leading to selling prices lagging feed cost rises

BlueScope Buildings$33.9M 32%• Nth Am: early softness in premium segment, now improved• China Buildings returned to profitability• Loss in Buildings ASEAN; proceeding with exit options

North Star$145.2M 31%

• Spreads moderated from historical highs• Strong operating and volume performance

Corporate & eliminations($58.3)M 15%

• Higher mainly due to inter-segment eliminations and equity-based remuneration expense

Comparisons are 1H FY2018 vs 1H FY2017. Underlying results are provided to assist readers better understand the underlying financial performance; refer to page 58 for information on the adjustments from reported financial information.Note: (1) The Taharoa export iron sands business generated underlying EBIT of $25.9M in 1H FY2017 and $0.3M in 2H FY2017. The business was divested on 1 May 2017 and has been reclassified to discontinued operations. Accordingly, underlying results have been adjusted to exclude Taharoa’s contribution. Table 13 of BlueScope’s FY2017 Operating and Financial Review contains further detail on the restatements.

MANAGEMENT AND STRATEGY UPDATE

9

New Executive Leadership Team

Mark Vassella

CharlieElias

Tania Archibald

Managing Director & Chief Executive Officer (as of 1 Jan 2018)

• 30 years in steel industry• Most recently Chief Executive, BlueScope Aust & NZ• Led Australian and New Zealand restructures• Ran all BlueScope’s buildings businesses in North America, leading the

integration of our acquisitions• Former member of the North Star and TBSL boards

Chief Exec NS BlueScope (as of 1 Mar 2018), andExec Responsibilityfor BlueScope China(from 1 Jul 2018)

• Currently BSL CFO (10 years)

• Experience working in Asia through NS BlueScope JV and TBSL boards; Linfox

BlueScope Chief Financial Officer(from 1 Mar 2018)

• Currently CFO Aust& NZ

• Instrumental in Aust& NZ restructures

• Also worked in Asia and in lead corporate roles in BSL

• 21 years with BSL

JohnNowlan

PatFinan

SanjayDayal

DebraCounsell

AlecHighnam

Chief Exec of ASP, and acting Chief Exec of NZ & Pac Steel (as of 1 Jan 2018)

• 42 year career with BSL; worked in many of our major facilities inclestablishing North Star

• Has led significant turnaround and efficiency programs

Chief Executive BlueScope Buildings

• 20 years with BlueScope, Butler, and BHP Coated Steel combined

• From 1 July 2018, executive responsibility to focus on BlueScope Buildings North America and North Star

Chief Executive Strategy and Optimisation (from 1 Mar 2018)

• Currently Chief Exec NS BlueScope

• Previously Chief Executive for Asia

Executive General Manager People

• Appointed Executive General Manager People on 1 April 2016

• Prior to current role Alec managed HR functions in both North America and Australia/New Zealand

Chief Legal Officer and Company Secretary

• Joined BlueScope in 2014, following an international career extending over 25 years in partner and equivalent roles at leading global law firms

10

What we aim to achieve, and how we do it, are guided by Our Bond, our strategy and our financial principles

Our Bond

Financial principlesStrategy

11

OURBOND

12

Enhancing our sustainability reporting

Initial step towards sustainability reporting, combining content of

BlueScope’s annual Community Safety and Environment Report, our People

Report, and the Annual Report

FY2017BLUESCOPE

SUSTAINABILITY REPORT

Focus on five key topics:• Safety, health & wellness• Climate change & energy• Supply chain sustainability• Business conduct• Diversity and inclusion

Intend to provide more detailed disclosure on climate-related governance, strategy, riskmanagement and metrics

To be released shortly

Substantive update of oursustainability reporting usingstakeholder consultation and

GRI framework

FY2016 Report FY2017 Report

OURBOND

FY2018BLUESCOPE

SUSTAINABILITY REPORT

Intend to further enhance disclosure on material sustainability topics

Intend to provide further disclosure on the organisation’s resilience under different climate-related scenarios

To be released late in 2018

Further update usingGRI framework

FY2018 Report

13

Strong performance on sustainability

Safety, health and wellness

• Relentless pursuit of Zero Harm and further improvement in performance against LTI and MTI measures

• World leading safety performance – kept LTIFR rate below 1.0 for over 13 years

Climate change and energy

• Reduced surplus steelmaking capacity by 50% leading to a reduction of Australian CO2 emissions by an estimated 43% since 2011

• Focused on reducing energy consumption and carbon emissions

Supply chain sustainability

• Committed to respecting human rights• Actively working on sustainability throughout the supply chain

Business conduct • Systems are in place to report and investigate any cases of misconduct• Across our 15,000 employees in 17 countries, the company’s independently-run 24/7 Whistleblower

Hotline has led to 10 investigations so far this financial year, some of which are ongoing

Diversity and inclusion

• Greater gender diversity across all levels:– ~40% new hires in operator/trade roles in 1H FY2018– Rate of hiring up 75% across the company since FY2015– Exceeded 30% gender diversity on the Board

OURBOND

14

The strategy is focussed on shareholder returns …

Growpremium branded steel businesses

with strong channels to market

Delivercompetitive commodity steel supply

in our local markets

Ensure ongoing financial strength

Coated & PaintedProducts

Drive growth in premium branded

coated and painted steel markets in

Asia-Pacific

BlueScope Buildings

Drive growth in North America and turn

around China

North Star BlueScope

Maximise value

Australia & NZ Steelmaking

Deliver value from Australian/NZ

steelmaking by game-changing cost

reduction or alternative model

Balance Sheet

Maintain strong balance sheet

Invest & grow Optimise & grow Optimise / invest Optimise Maintain

Note: included in the Coated & Painted Products grouping are our Australia, New Zealand, ASEAN, U.S., India and China metal coating, painting and rollforming operations. Australia & NZ Steelmaking includes all operations in both countries up to and including HRC and plate production.

STRATEGY

15

… and is delivering financiallyUnderlying EBIT (group) Underlying return on invested capital

1,044

329

(215)

CY2017FY2015FY2012

$M

$M

Underlying EPS

cents

per s

hare

Free cash flow (operating cash flow less capex)

17.0%

6.5%

-4.2%

CY2017FY2015FY2012

111

29

(8)

FY2015 CY2017FY2012

609

15438

FY2015 CY2017FY2012

STRATEGY

16

A lot has been achieved and we have plenty moreto do to drive growth

Growpremium branded steel businesses

with strong channels to market

Delivercompetitive commodity steel supply

in our local markets

Ensure ongoing financial strength

Coated & PaintedProducts

BlueScope Buildings

North Star BlueScope

Australia & NZ Steelmaking

Balance Sheet

Significant North America earnings growth

Growing homeappliance steels sales in Thailand

CommissioningMCL3 in Thailand later this year

Growth in Aust. coated product sales

Potential India investments –painting & coating

North America: delivering productivity savings / continuous improvement

China Buildings restructured back to profitability

Moved to full ownership

25kt production increase in 1H18

Targeting further incremental expansion

$300M pa productivity / cost improvements in Australia

NZ$80M productivity / cost improvements in NZ

Divested Taharoa iron sands

Net debt reduced to $262M

Leverage reducedto 0.2x

Clear capital management framework incorporating ongoing buy-backs

Key:Current / future growth area

STRATEGY

17

Clearly stated financial principles to supportdecision making and investment

Return hurdles • Every BlueScope business needs to deliver ROIC• Management and employees are incentivised within each business to deliver ROIC targets

Investment timing • BlueScope intends to have the financial capacity at troughs in the cycle, to make opportunistic investments

• BlueScope will avoid M&A at peaks in the cycle• BlueScope is a net purchaser of steel substrate and will continue to ensure options exist for

competitive substrate sourcing

Balance sheet capacity

• BlueScope will target zero net debt or positive cash• BlueScope will reward shareholders from free cash flow as an active strategy• Leverage may be used for appropriate acquisitions but only if accompanied by an active debt

reduction program

Steelmaking • Commodity steelmaking in Australia & NZ is a valuable option provided it can deliver targetreturns and is cash flow breakeven1 at the bottom of the cycle

• BlueScope intends to maintain balance sheet capacity to fund a shutdown of steelmaking if not cash positive. Conversely it will maintain flexibility to reinvest in capacity where target returns are met

Note (1): EBITDA less stay in business capital expenditure

FINANCIALPRINCIPLES

18

Capital management framework

Note:(1) On-market buy-backs are seen as the most effective method of returning capital to shareholders after considering various alternatives and given BSL’s lack of franking capacity after

payment of the interim dividend. The Board reserves the right to suspend or terminate buy-back at any time.

FINANCIALPRINCIPLES

Framework • Board’s present intention is to pay consistent dividends, given limited franking availability, in conjunction with ongoing on-market buy-backs1, funded on the following basis:

– To retain strong credit metrics – To ensure a balance between returning capital to shareholders and investing in

growth, particularly in Asia– To be 30% to 50% of free cash flow. To be updated if/when net cash position

achieved

Dividend and buy-back

• Over $340M returned to shareholders in dividends and buy-backs during CY2017, while at the same time investing capital in growth and reducing net debt

• The Board today announced a 6.0 cents per share partially franked interim dividend and a $150M extension of the on-market buy-back

SEGMENTFINANCIAL RESULTS

20

Underlying EBIT ($M) Comments on 1H FY2018 (compared to 2H FY2017)

• Volume / mix improved– Domestic volume increased on strong demand – HRC and

COLORBOND® steel volumes in particular– Solid mill production performance of 3.0mtpa run-rate in the half

• Realised spread improved:– Prices largely similar (but better than outlook expectations)– Improvement in benchmark coal and iron ore prices offset by

high priced inventory from 2H FY2017 and non-repeat of one-off price benefits in 2H FY2017

– Settlement of historical coal supply dispute $32.1M1

– Higher scrap and coating metal prices• Higher contribution from export coke of $24M• Energy cost escalation of ~$17M

ASP underlying EBIT up over 2H FY2017 through better volumes/mix, spread and coke margins

Domestic despatches (kt)

Targeted growth drivers• Increasing competitiveness and offer compared to imports• Product development to target inter-material growth

opportunities• Deliver further productivity and cost improvements to at

least offset inflation. However, energy costs remain a headwind2H FY2016

1,0071,034

1,002

1H FY20171H FY2016

1,096

1H FY2018

1,076

2H FY2017

Note: further despatch volume data, including exports, is found on page 66

216.9242.5

229.6

261.7

1H FY20182H FY2017

32.1

1H FY2017

$32.1M one-off benefit1 from settlement of historical coal

supply dispute

Note: (1) cash settlement and reversal of prior year provisions

21

0

200

400

600

800

1,000

1,200

(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

1H FY15 2H FY15 1H FY16 2H FY16 1H FY17 2H F17 1H FY18

Total Australian external domestic despatch volumes (Kt)

Total construction % shown in red

1,073kt 1,019kt 1,098kt 1,094kt 1,107kt 1,146kt 1,179kt

(141)kt (118)kt (91)kt (92)kt (73)kt (70)kt (83)kt

932kt 901kt 1,007kt 1,002kt 1,034kt 1,076kt 1,096kt

GrossDespatches

less 1NormalisedDespatches

Continued focus on customer engagement is underpinning Australian demand

Non-dwelling

Dwelling

Engineering2

Manufacturing

Agri & mining

Transport

6% (65kt)

11%(113kt)

13%(132kt)

8%(80kt)

29%(297kt)

33%(332kt)

69%68%

7% (70kt)

11%(120kt)

13%(136kt)

7% (80kt)

31%(331kt)

31%(336kt)

FY20151,833kt

7% (75kt)

12%(132kt)

12%(126kt)

7%(81kt)

30%(325kt)

32%(355kt)

69%

7% (73kt)

10%(114kt)

12%(130kt)

7%(82kt)

30%(326kt)

34%(372kt)

71%

FY20162,009kt

70%

7% (79kt)

12%(133kt)

11%(123kt)

7%(79kt)

30%(331kt)

33%(362kt)

FY20172,110kt

• A significant proportion of product goes to alterations and additions. Sub-segment performing well

• Balance mainly driven by detached residential commencements; limited exposure to multi-residential.

• Detached approvals remain positive with flow-on activity effect and some constraints on trade availability extending the pipeline of workflow

• Truck bodies, trains, ships, trailers etc – this area is growing

• Automotive volumes in decline following closure of car manufacturing in 1H FY2018

• Consumes a third of our COLORBOND® steel • Strong east coast economy and booming services

sector driving positive investment in new office, retail, hotels and warehouses

• Strong public infrastructure and utilities investment to offset LNG pullback. Focus of public investment in NSW and Vic; in roads, rail and telecoms

• Stabilised and improved marginally since A$ fall from parity; strong dwelling market providing key support

• Growth momentum in agri on Asian demand and weaker AUD currency; mining spend visible in pockets

69%

8% (94kt)

29%(327kt)

32%(370kt)

12%(140kt)

12%(138kt)

7%(77kt)

9% (110kt)

29%(337kt)

33%(387kt)

12%(137kt)

12%(143kt)

5% (65kt)

71%

22

ASP’s profitability improved considerably through productivity initiatives, even at “bottom of the cycle” spreads

(100)

(50)

0

50

100

150

200

250

300

350

400

0 100 200 300 400 500 600 700

FY16

FY10

FY12

FY15

FY05

FY09

FY03

FY08

Bottom of cycle spreads1

Underlying EBITDA per

tonneA$/t

East Asia Lagged Spread A$/tNote: (1) USD170/t, AUD/USD0.73

ASP EBITDA per tonne vs spread

ASP remains positioned with considerable leverage to spread improvements with steelmaking cash positiveat ~ “bottom of the cycle” spreads. Moving forward, we must not be complacent in our pursuit of

continued productivity improvements. We need to deliver returns necessary to supporta decision in 10 to 15 years to reline the blast furnace at Port Kembla

FY07FY04

FY11FY13

FY14

FY06

FY171H18

23

Comments on 1H FY2018

• Continued to operate at 100% capacity utilisation

• Spread in the US$280-290/t range – moderated from the historical highs of 1H FY2017

• Volume increased over 1H FY2017 through capacity expansion initiatives. Volume lower than 2H FY2017 due to seasonality. Pursuing further incremental capacity growth

• Upward pressure on electrode, refractory and alloy costs in 2H FY2018 of ~A$5M and further similar amount expected in FY2019

• FX translation unfavourable with stronger AUD:USD

North Star underlying EBIT down 31% on 1H FY2017 with spreads moderated from historical highs

Total despatch volumes (metric Kt)

Note: (1) Includes Castrip equity accounted until 8 Jul 2016

Targeted growth drivers

• Boosting capacity through low cost de-bottle-necking projects – track record of incrementally growing capacity

• Continue to target costs

Underlying EBIT ($M)1

145.2

195.4211.3

1H FY20182H FY20171H FY2017

1,0381,0771,017

1H FY20182H FY20171H FY2017

24

North Star: further low-capital incremental expansion

500

1,000

1,500

2,000

FY02 FY08 FY14FY98 FY00 FY04 FY06 FY10 FY12 FY16

Metric

kt

+86%Furtherincremental capacity expansion in progress

GFC

North Star despatches since commencement (100% basis)

Delivered majority of goal of adding ~120kt of incremental production by FY2018 (over FY2014). Pursuing further growth through improving caster speeds, hot strip

mill edger enhancements and other yield improvements

25

North Star – earnings relatively consistent through the cycle, noting annual variability. Averaged 90% conversion of EBITDA to cash over last six years

135

168180

99

6574

131

114102

8178

100

66

122

156164

89

5463

117108

92

7166

94

61

285

324340

221

295278

248233

257247

0

50

100

150

200

250

0

50

100

150

200

250

300

350

2H171H17 1H181H16 2H162H14 2H151H152H13 1H141H132H12

253

195

250

1H12

Cash flow (EBITDA less capex)EBITDA (100% basis)U.S. mini-mill spread

US$M EBITDA and spread1

Note: (1) U.S. Midwest mini-mill HRC spread (metric) – based on CRU Midwest HRC price (assuming 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 usage of 1.1t per output tonne

U.S.

mini

-mill

spre

ad (U

S$/t m

etric)

EBIT

DA (U

S$M)

Move to full ownership of North Star during

1H FY2016

26

Underlying EBIT ($M) Comments on 1H FY2018

• Benefit of diversified geographical exposure – with North America, India and Indonesia stronger; other businesses softer

• North America: better volume and cost performance. Noting roll-off of $20M one-off inventory benefit in 1H FY2017

• India: business conditions remain positive; core earnings similar to last half; $10.7M one-off benefit of recognising previously unrecognised deferred tax asset (included due to equity accounting)

• Soft demand in projects segment in South East Asia leading to selling prices lagging feed cost rises– Thailand: softer volume and mix with lower industrial &

commercial and retail volumes, offset in part by higher manufacturing and home appliance steel volumes

– Malaysia: spread compression in a weaker construction market; export volumes down

– Vietnam: combination of prolonged wet season and adverse mix shift in the SME and retail segments led to a weaker result

– Indonesia: higher margins through pricing discipline

Total despatch volumes (Kt)

Building Products segment underlying EBIT down 16% on 1H FY2017

Targeted growth drivers

• Continue to target broader GDP+ growth with increasing wealth of middle classes driving demand increases

Note: (1) Equity accounted share of net profit after tax

1 21.2 13.7 17.2

9.6 15.4 12.0

21.8 19.0 15.0

48.0 30.8 32.2

(3.1)(3.6) 8.8

10.1

93.3

(2.6)

Nth America

1H FY2018

Indonesia

Other

Vietnam

Thailand

India

Malaysia

7.2

7.8

111.3

1H FY2017

7.3

2H FY2017

7.2

90.4

701.0 724.2 711.7

1H FY20182H FY20171H FY2017

27

Coated & painted projects in process and under evaluation in Asia; to be funded from free cash flow

Retail/SME products • Continued investment in products, brands and channels to grow sales to the retail/SME markets in each country

Home appliance steels • Progressing towards our business case sales volume target but at a slower rate than expected (around 50% of expected rate)

Next generation ZINCALUME® steel products

• Evaluating roll-out of next-generation ZINCALUME® steel with Activate™ technology (magnesium-additive coating)

Third metal coating line in Thailand • Construction commenced. Commercial production expected in early FY2019

Myanmar market entry • Sales office established in 2013. Lysaght roll-forming facility commenced operation in 1H FY2018

India painting capacity • Demand for additional painting capacity being evaluated

India metal coating capacity • Conducting pre-feasibility on second metal coating line in India

Cold rolling capacity in Asia • Evaluating demand for additional cold rolling capacity in ASEAN

28

Underlying EBIT ($M) Comments on 1H FY2018

BlueScope Buildings underlying EBIT down 32% on 1H FY2017; but momentum building in North America and China Buildings profitable

Total despatch volumes (Kt)

• Engineered Buildings North America:– Early softness in premium manufacturing and industrial

segments impacted volumes/margins. Order intake recovering from Q2 FY2018

– Continued benefits of productivity program• Coating & Painting China:

– Lower volumes and margins driven by weaker demand in premium segments

• Engineered Buildings China:– Returned a profit following implementation of sales

effectiveness, plant restructuring and productivity improvement initiatives

– $15M improvement compared to 1H FY2017• Engineered Buildings ASEAN:

– Softer order intake and lower margins– Progressing exit options

Targeted growth & improvement drivers

• North America: (i) new business segment initiatives to improve customer share of wallet; (ii) delivering further continuous improvement measures

• China Buildings: positioning business as a profitable channel for our Coating & Painting operations

95.8 94.1 107.6

110.3 87.0 98.7

129.2117.7 116.2

10.316.719.5

1H FY20182H FY20171H FY2017

Buildings Nth Am

Interco elims

Buildings ChinaBuildings ASEAN

Coated China

305.7

(27.1)

294.5

(21.0)

332.1

(22.7)

17.7 10.0

43.2

19.5

31.0

(7.4)(9.9) (7.3)

(5.0)(2.2)(3.2)

1.7

1H FY2017

49.5

Buildings China

Buildings ASEAN

1H FY2018

33.9

Interco elims

Buildings Nth Am

Coated China

5.3

2H FY2017

14.5

(1.4)

5.9

29

Comments on 1H FY2018Underlying EBIT1 ($M)

Domestic steel despatches (Kt)

New Zealand & Pacific Steel underlying EBIT tripled 1H FY2017 on productivity initiatives and improved steel prices

• Domestic demand continues to be very strong– Continued strong building activity– Robust infrastructure demand – esp in roads

• Modest increase in selling prices on higher regional steel prices, compared to 2H FY2017

• Raw material costs rose on higher coal and coating metals prices

• Further productivity improvements and cost savings, mainly volume benefit from plant throughput improvements

• Taharoa divested 1 May 2017

Targeted growth drivers

• Continued focus on further productivity / restructuring benefits

135 135 132

87 96 98

2H FY171H FY17

232222

Pacific Steel (long)

1H FY18

229

New Zealand Steel (flat)

Note: further despatch volume data, including exports, is found on page 81Note (1): The Taharoa export iron sands business generated underlying EBIT of $25.9M in 1H FY2017 and $0.3M in 2H FY2017. The business was divested on 1 May 2017 and has been reclassified to discontinued operations. Accordingly, underlying results have been adjusted to exclude Taharoa’s contribution. Table 13 of BlueScope FY2017 Operating and Financial Review contains further detail on the restatements.

41.047.5

13.6

1H FY20182H FY20171H FY2017

GROUP FINANCIALS

31

516.8 527.3

Conversion & other costs

Raw material costs

(67.6)

Export prices Volume & mix

(18.8)

1H FY2018FX translation & other

43.3 4.2

Domestic prices

8.8

2H FY2017

19.6

Net spread decrease $36.8M

516.8

298.3

577.7

1H FY2018FX translation & other

12.0(38.7) 2.6

Export prices1H FY2017 Conversion & other costs

Domestic prices Raw material costs

Volume & mix

43.7

(378.8)

Notes: 1) Cash settlement and reversal of prior year provisions 2) Volume / mix based on 1H FY2017 margins 3) Volume / mix based on 2H FY2017 margins4) FX translation relates to translation of foreign currency earnings to AUD, transactional foreign exchange impacts are reflected in the individual categories5) Comprised of historical legacy and settlements $40M, executive remuneration $8M, opex investment $4M and other $4M

2

Underlying EBIT variances

3

4

4

Conversion & other costs:Cost improvement initiatives 30Escalation (42)Timing, one-off & other5 (56)

Raw material costs:Coal (net of coke margin of +$24M) 34Settlement of historical coal supply dispute1 32Iron ore (14)Scrap & alloys (incl North Star scrap) (63)Coating metals (15)External steel feed (7)NRV, opening stock adj, yield & other 14

Raw material costs:Coal (net of coke margin +$19M) (50)Settlement of historical coal supply dispute1 32Iron ore (13)Scrap & alloys (incl North Star scrap) (185)Coating metals (49)External steel feed (116)NRV & opening stock adj, yield & other 2

Net spread increase $33.3M

Conversion & other costs:Cost improvement initiatives 47Escalation (67)Timing, one-off & other (19)

32

Updated view on relationships with benchmark pricing for ASP

• Changed trading conditions and more frequent large moves in commodity prices has influenced the impact of benchmark prices on ASP

• Degree of correlation between realised domestic selling prices and regional benchmark HRC prices, and length of lags, in a given half-year can be influenced by:– Domestic demand growth initiatives (such as project pricing and in targeting inter-material growth)– Timing of anti-dumping reviews– Strategic buying behaviour by customers

• For raw materials, increased volatility of prices, weather events and fluctuations of inventory levels can dampen relativity to benchmark pricing

• Further information on page 69

Degree of correlation between realised and benchmark prices can vary within a given half year but is more fully reflected over the medium term

33

Underlying earnings and net finance cost

$M 1H FY2017 2H FY2017 1H FY2018

Underlying EBIT 577.7 527.3 516.8

Underlying finance costs (45.9) (41.0) (41.0)

Interest revenue 3.2 3.0 3.8

Profit from ordinary activities before tax 535.0 489.4 479.6

Underlying income tax (expense)/benefit (145.5) (144.8) (126.0)

Underlying NPAT from ordinary activities 389.5 344.5 353.6

Net (profit)/loss attributable to non-controlling interests (46.1) (37.2) (32.5)

Underlying NPAT attributable to equity holders of BSL 343.5 307.4 321.1

26.3% effective underlying tax rate

Breakdown of net finance costs144a U.S. unsecured notes 20.9Syndicated bank facility charges (mainly commitment fees) 3.8Finance leases 6.7Amortisation of borrowing costs and present value charges (non-cash) 4.4Other finance costs (incl NS BlueScope interest costs) 5.2Less, interest income (3.8)Total 37.2

34

$M 1H FY17 2H FY17 1H FY18Reported EBITDA 737.0 688.0 697.2Adjust for other cash profit items 35.6 33.8 (8.6)

Cash from operations 772.6 721.8 688.6Working capital movement (inc provisions) (183.8) 64.7 (261.9)

Gross operating cash flow 588.8 786.5 426.7Financing costs (50.9) (39.9) (38.4)

Interest received 3.2 2.9 3.8

(Payment) / refund of income tax 1 (79.6) (78.7) (34.1)

Net operating cash flow 461.5 670.9 357.9Capex: payments for P, P & E and intangibles (175.2) (207.8) (211.7)

Other investing cash flow 28.1 (53.4) 10.3

Net cash flow before financing 314.4 409.7 156.5Equity issues / (buy-backs) (0.3) (150.2) (142.9)

Dividends to BSL shareholders (17.2) (23.0) (28.3)

Dividends to non-controlling interests (17.6) (45.8) (22.7)

Transactions with non-controlling interests - - -

Net drawing / (repayment) of borrowings (269.4) 14.7 101.7

Net increase/(decrease) in cash held 9.9 205.5 64.3

(1) As at 31 December 2017 the BlueScope Steel Australian tax consolidated group is estimated to have carried forward tax losses of approximately $2.2Bn. There will be no Australian income tax payments until these losses are recovered

(2) Cash capex of $211.7M in 1H FY2018; new capital commitments of $179M

Continued strong cash flow

2

$148M of shares bought under buy-back in1H FY2018, with $5M settled after 31 Dec 2017

Working capital build, mainly driven by inventory and payables – includes unwind of $100M of favourable

timing of working capital that was noted at30 June 2017

Lower cash tax paid on lower U.S. (eg North Star) earnings

35

Net working capital

1,361.5

1,156.1 232.3

127.5

Receivables

(149.9)

Jun-2017 Dec-2017

(4.5)

Payables Deferred income

Inventory

$M

1,212.2

1,035.5

1,419.6

1,269.3

Dec-2015Jun-2015 Dec-2016Jun-2016

% of sales(half year results

based on 6 months prior annualised)

14.8% 16.0% 11.7%11.3%

Consolidation of only 2 months revenue of North Star, but full working capital balance of $139.8M

12.4%10.9%

30 June 2017 benefittedby $100M from timing of

year-end cash flows

Mainly prices, and partly volume. Mostly in ASP

Seasonality and timing of cash flows

Note: (1) Trade and sundry payables

1

36

Investing in our businesses – increasing capital and investment expenditures on strategic growth projects

Note: (1) Excludes $1,008m for acquisition of remaining 50% share in North Star

1

260 273

62

11045

Sustaining capex

Growth capex

FY2017

383367

FY2016

Pacific Steel -integration, billet

caster & final consideration

$116M in 1H,$251M in 2H

$136M in 1H,$247M in 2H

$M

101

78

179

~200 Sustaining capex

Growth capex

2H FY2018(expected)

~100

1H FY2018

~300

Largest growth projects:• Painting and coating capacity in Thailand• Potential painting capacity in India• Investment in next generation ZINCALUME® steel

technology across ASEAN and China• Continued investment in building design and

engineering systems

37

Net debt of $262M; liquidity of $2.0bn

Net debt ($M)

2,025.5 1,932.4

1,801.4

Dec-17Dec-16 Jun-17

Liquidity (undrawn facilities and cash, $M)

3

(3) Includes $429.0M liquidity in NS BlueScope Coated Products JV(1) $262M net debt comprised of $1,078.0M gross debt less $815.9M cash(2) Non-controlling interests in the NS BlueScope Coated Products JV

2

1

170

262232 (10)

Other incl asset sales

Est net debt/cash attrib to

NCI

Dec-17

15

FX Dec-17 - BSL

(92)

Capex & invest

exp

212

Share Buy

Back & BSL

dividend

171

(358)

Jun-17 Cash inflow

from ops (Incl

SOR)

38

Investment grade

Strong credit profile and improving credit metrics –refinancings will lower finance costs

Leverage – net debt to LTM underlying EBITDA1 Corporate ratings – S&P and Moody’s

0.2x0.2x0.4x

0.8x

1.6x

0.4x0.7x

0.4x0.4x0.4x

Dec-1

7

Dec-1

3

Dec-1

6

Jun-

16

Jun-

17

Dec-1

5

Jun-

15

Jun-

14

Dec-1

4

Jun-

13

(1) Dec-15 and Jun-16 includes North Star proforma for previous 12 months

Step-up and rapid pay-down

of North Star 50% acquisition

Apr-16Apr-13 Nov-16

B+

BB-

BB

BB+

BBB-

B1

Ba3

Ba2

Ba1

Baa3

S&P

Moody’s

OUTLOOK & SUMMARY

40

2H FY2018 outlook – segment comments1

New Zealand & Pacific Steel• Expect a stronger result on regional steel prices• Expect ~$10M impact from lower vanadium margins,

incremental depreciation charge and adverse timing of costs

Building Products ASEAN, Nth Am & India• Expect a similar result• Soft demand in projects segment in South East Asia

leading to selling prices lagging feed cost rises

BlueScope Buildings

• North America: expect stronger demand, improving margins and continuous improvement initiatives

• Coated China: expected similar operating performance• Buildings China: expect continued positive EBIT despite

seasonality• Buildings ASEAN: progressing exit options

North Star• Average spread through 2H FY2018 expected to be

~US$40/t higher• Spread expectations do not include any potential s232

impact• Expect increased despatch volumes• Expect ~A$5M of incremental consumables cost –

electrodes, refractories and alloys (& likely to see a similar further cost rise in 1H FY2019)

Note (1): Comparisons are to 1H FY2018. Outlook subject to assumptions and qualifiers referenced on page 41

Australian Steel Products• Overall, expect a stronger result• Spreads improving with stronger benchmark HRC prices.

Price rise correlation moderated by dumping and strategic pricing

• Raw materials:– Expect benefit in raw material achieved cost (eg better

than benchmark prices)– Non-repeat of one-off coal supply dispute settlement– Rising coating metal and scrap prices– Assumed lower coke margins

41

• The Company currently expects, after deducting the one-off benefit of the $32.1M coal settlement from 1H FY2018 underlying EBIT, second half underlying EBIT to be around 25% higher

• Based on assumptions of average1:– East Asian HRC price of ~US$600/t– 62% Fe iron ore price of ~US$70/t CFR China – Index hard coking coal price of ~US$210/t FOB Australia– U.S. mini-mill spreads to be US$40/t higher than 1H FY2018– AUD:USD at US$0.79

• Expect 2H FY2018 underlying net finance costs to be lower than 1H FY2018 due to lower average net debt; expect underlying tax rate and profit attributable to non-controlling interests similar to 1H FY2018

• Expectations are subject to spread, FX and market conditions

Outlook

Note: (1) all prices quoted on a metric tonne basis. Sensitivities can be found on page 64

42

Questions and answers

BLUESCOPE –A VERY DIFFERENT KIND OF

STEEL COMPANY

44

A very different kind of steel company

1 A portfolio of diversified, profitable businesses

2 Brands

3 Pivot to value added

4 Own our channels to market

5 Geographic diversity

6 Rebased earnings

7 High return on invested capital

8 Strong cash flow

9 Strong balance sheet

45

A portfolio of diversified, profitable businesses1

North Star BlueScope Steel

• Operates a 2.1Mtpa mini-mill in Ohio, with industry leading utilisation (~100% over last 6 years)

• North Star voted #1 sheet producer in North America (Jacobson Survey) for 13 out of the last 15 years

BlueScope Buildings

• Leading designer and manufacturer of engineered building solutions

• Key markets in China & North America; plants in ASEAN, India, Middle East

• Supplying buildings to global customers

• China coating & painting

Building Products ASEAN, North America

and India

• Leader in metal coated and painted steel building products

• Comprises NS BlueScope Coated Products JV (50/50 JV; consolidated) and Tata BlueScope JV (50/50 JV; equity accounted)

• Operates metallic coating and painting lines and roll-forming in Indonesia, Malaysia, Thailand, Vietnam, India and North America

New Zealand and Pacific Steel

• Produces and markets a range of high value coated and painted flat steel products for Australian building and construction customers

• Broader offering of commodity flat steel products

• Key brands include zinc/aluminium alloy-coated ZINCALUME® steel and galvanised and zinc/aluminium alloy-coated pre-painted COLORBOND® steel

• Significant channels to market through our building components and distribution businesses

• Sole producer of steel products in New Zealand, with leading domestic market share of flat products

• Flat steel products include value-added coated and painted products, together with commodity grades

• Leading market share in New Zealand in long products through acquisition of Pacific Steel

Australian Steel Products

High value branded steel building materials businesses – technology, quality and scale leader Highly competitive commodity steelmaking businesses

46

(100)(50)

050

100150200250300350400

0 200 400 600 800

Peer no. 2

Peer no. 3

Peer no. 4

Peer no. 5

Peer no. 6

A portfolio of diversified, profitable businessesIn commodity steelmaking – but with highly competitive cost positions1

FY16

FY10

FY12

FY15

FY05

FY09

FY03

FY08

Bottom of cycle spreads1

Unde

rlyin

g EB

ITDA

per

tonn

e A$/t

East Asia Lagged Spread A$/tNote: (1) USD170/t, AUD/USD0.73

Aust Steel Products EBITDA per tonne vs spread

FY07FY04

FY11

FY13

FY14

FY06

FY171H18

EBIT margin – North Star and North American peers

North Star

3.0%

4.5%

6.6%

9.5%

10.7%

16.1%

19.3%

Note: 2017 data(1) Steel Business (2) America Mills segment(3) NAFTA segment(4) Flat rolled productsSource: Company information

Peer no. 1(1)

(2)

(3)

(4)

47

A portfolio of diversified, profitable businessesLeading to earnings diversity

891,422

-95133

396

656

243

Corp. / interseg

North Star

ASP

BP segment

NZPac

CY2017

BlueScope Buildings

Premiumbrandedproducts

Cost-competitivecommoditysteelmakingCoated & painted andcommodity steel

Underlying EBITDA by segment ($M)

1

48

Brands – our brand portfolio contains many well-known and respected names

Note: SuperDyma® and VIEWKOTE™ are brands of our NS BlueScope Coated Products joint venture partner, Nippon Steel & Sumitomo Metal Corporation

Asia

Buildings

New Zealand

Australia

2

49

Pivot in our sales mix – increasing contribution from value-added products

BlueScope despatch volume mix

0%

20%

40%

60%

80%

100%

FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17NZ steelmaking (exports)Aus steelmaking (exports)NZ steelmaking (domestic)

North America steelmaking

Australia cold rolledand coated & painted

Building products

BlueScope Buildings

Aus steelmaking (domestic)

• Increased earnings from Asian coated and painted businesses, with balanced customer exposure across projects/commercial and retail/SME markets … and now home appliance applications

• Full ownership of North Star, a high quality and competitive business

Higher valueadded

High performing,cost competitivecommodity steelmaking

Cost competitivecommodity steel

3

50

We own channels to end customers in our main markets4 We own channels to end customers in our main markets We know our customers and build brand awareness through this

Asia

Buildings

Australia

North America

51

Geographic diversity5

Underlying EBITDA by region ($M)

9%

43%

New Zealand$133M

Australia$647M

36%

Asia$188M

North America$549M

12%

CY2017

Note: total includes corporate costs & eliminations of $95.3M, excluded from pie chart

Total: $1,422M

52

Earnings rebased following two year transformationImprovement in underlying EBIT

377

299

103

1,105

329

FY2017 underlying

EBIT

(23)

BlueScope Buildings

Corporate / other

20

Building Products segment

FY2015 underlying

EBIT

BlueScope ANZ

North Star

Driven by productivity and cost improvements, with similar spreads

$M • Move to full ownership• Spreads stronger• Incremental volume• Cost control

Driven by growth in:• North America• Vietnam• India

North America productivity initiatives

Cash flow (after capex):$154M (FY2015) $749M (FY2017)

• Rebased earnings to a higher level

• Macro volatility having lower % impact on earnings

• Improved earnings mix:– Value added

products– Geographic

diversity

• Strong position to fund growth, reduce debt and for capital management

6

2Houtlook

FY2018 underlying

EBIT

1Hactual517

79

FY2014 underlying

EBIT

FY2013 underlying

EBIT

221

Arou

nd 25

% hi

gher

than

$484

.7M

1

Note (1): expectations are subject to spread, FX and market conditions

53

High return on invested capital7 Group ROIC of 17.0% in CY2017 ROIC is a key discipline for (i) performance management, (ii) project assessment, and (iii) executive incentives

BlueScope group and segmental return on invested capital (ROIC) in CY2017

19.3%

Building Products ASEAN, Nth Am

& India

Australian Steel Products

30.2%

North StarNew Zealand & Pacific Steel

BlueScope Steel group

17.0%

8.1%

BlueScope Buildings

20.6%

16.4%

54

Strong cash flow following transformation8

$550-650M of free cash after capital expenditure and sale of receivables in CY2016 and CY2017 Returning funds to shareholders through dividends and on-market buy-backs (over $340M in CY2017)

Free cash flow after capex / investing

552651

73

-48

196

57

CY2016

901

CY2017

609

CY2014

250

CY2015CY2013

$M

Sale of receivables

55

Strong balance sheet9 Clearly stated financial principles to support decision making and investment Target zero net debt or positive cash; $262M net debt at last balance date Key management long term incentives linked to balance sheet health – do not vest if leverage ratio (ND/EBITDA) over

three years exceeds 1.0x

Investment grade

Leverage – net debt to LTM underlying EBITDA1 Corporate ratings – S&P and Moody’s

0.2x0.2x0.4x

0.8x

1.6x

0.4x0.7x

0.4x0.4x0.4x

Dec-1

7

Dec-1

3

Dec-1

6

Jun-

16

Jun-

17

Dec-1

5

Jun-

15

Jun-

14

Dec-1

4

Jun-

13

(1) Dec-15 and Jun-16 includes North Star proforma for previous 12 months

Step-up and rapid pay-down

of North Star 50% acquisition

Apr-16Apr-13 Nov-16

B+

BB-

BB

BB+

BBB-

B1

Ba3

Ba2

Ba1

Baa3

S&P

Moody’s

ADDITIONAL INFORMATION – GROUP-LEVEL MATERIAL

57

SIX MONTHS ENDED$M (unless marked) 31 DEC 2016 31 DEC 2017 1H FY18 vs 1H FY17Total revenue 5,195.2 5,490.5

External despatches of steel products (kt) 3,696.3 3,715.0

EBITDA − Underlying 1 767.1 703.5

EBIT − Reported 547.6 510.5

− Underlying 1 577.7 516.8

NPAT − Reported 359.1 441.2

− Underlying 1 343.5 321.1

EPS − Reported 62.7 cps 78.6 cps

− Underlying 1 59.9 cps 57.2 cps

Underlying EBIT Return on Invested Capital 19.6% 16.8%

Net Cashflow From Operating Activities 461.5 357.9

– After capex / investments 314.4 156.5

Interim dividend 4.0 cps 6.0 cps

Net debt 531.3 262.1

Note: (1) Refer to page 58 for a detailed reconciliation of reported to underlying results

Financial headlines

58

1H FY2018NPAT $M

Reported net profit after tax 441.2

Underlying adjustments

Asset impairments 11.1

Restructuring & redundancy costs 1.8

Asset sales (2.7)Tax asset impairment / (write-back) – mainly utilisation of unbooked

Australian tax asset (75.5)

U.S. tax reform – adjustment to deferred tax asset (52.1)

Discontinued Business (gains) / losses (2.7)

Underlying net profit after tax 321.1

Note: 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 interim financial report which has been reviewed. Further details can be found in Tables 12 and 13 of the ASX Earnings Report for the six months ended 31 December 2017 (document underListing Rule 4.2A)

Reconciliation between reported NPAT and underlying NPAT1

59

Sales revenue

Underlying EBITDA

Summary of financial items by segment

Total steel despatches

Underlying EBIT

Note: The Taharoa export iron sands business generated underlying EBIT of $25.9M in 1H FY2017 and $0.3M in 2H FY2017. The business was divested on 1 May 2017 and has been reclassified to discontinued operations. Accordingly, underlying results have been adjusted to exclude Taharoa’s contribution. Table 13 of BlueScope FY2017 Operating and Financial Review contains further detail on the restatements

$M 1H17 2H17 FY17 1H18

Australian Steel Products 2,365.0 2,553.7 4,918.7 2,565.7

North Star BlueScope Steel 793.9 906.9 1,700.9 860.6

Building Products ASEAN, NA & India 951.0 1,019.5 1,970.5 1,028.6

BlueScope Buildings 896.1 860.7 1,756.8 830.8

New Zealand and Pacific Steel 344.7 402.8 747.5 386.8 Intersegment, Corporate & Discontinued (165.6) (193.3) (359.1) (196.1)Total 5,185.1 5,550.2 10,735.3 5,476.4

$M 1H17 2H17 FY17 1H18

Australian Steel Products 332.0 305.6 637.6 350.6

North Star BlueScope Steel 238.6 223.1 461.7 172.5

Building Products ASEAN, NA & India 142.1 121.8 264.0 121.6

BlueScope Buildings 71.2 35.1 106.3 53.8

New Zealand and Pacific Steel 33.5 69.8 103.2 63.2 Intersegment, Corporate & Discontinued (50.3) (37.1) (87.4) (58.2)

Total 767.1 718.3 1,485.4 703.5

$M 1H17 2H17 FY17 1H18

Australian Steel Products 242.5 216.9 459.4 261.7

North Star BlueScope Steel 211.3 195.4 406.6 145.2

Building Products ASEAN, NA & India 111.3 90.4 201.7 93.3

BlueScope Buildings 49.4 14.5 64.0 33.9

New Zealand and Pacific Steel 13.6 47.5 61.1 41.0

Intersegment, Corporate & Discontinued (50.4) (37.4) (87.8) (58.3)

Total 577.7 527.3 1,105.0 516.8

'000 tonnes 1H17 2H17 FY17 1H18

Australian Steel Products 1,466.4 1,624.3 3,090.7 1,515.3

North Star BlueScope Steel 1,016.5 1,076.5 2,093.0 1,037.5

Building Products ASEAN, NA & India 711.7 724.2 1,435.9 701.0

BlueScope Buildings 332.1 294.6 626.6 305.7

New Zealand and Pacific Steel 276.4 328.5 604.9 307.5 Intersegment, Corporate & Discontinued (106.8) (129.2) (235.9) (151.9)

Total 3,696.3 3,918.9 7,615.2 3,715.0

60

$M 31 Dec 2016 30 Jun 2017 31 Dec 2017

Assets Cash 561.9 753.0 815.9Receivables * 1,059.9 1,363.9 1,214.0Inventory * 1,814.0 1,733.2 1,860.7Property, Plant & Equipment 3,798.6 3,721.7 3,706.7Intangible Assets 1,794.4 1,689.7 1,646.2Other Assets 361.1 313.9 345.3Total Assets 9,389.9 9,575.4 9,588.8

Liabilities Trade & Sundry Creditors * 1,458.5 1,775.4 1,543.0Capital & Investing Creditors 38.2 72.4 41.5Borrowings 1,093.2 985.2 1,078.0Deferred Income * 203.1 165.6 170.2Retirement Benefit Obligations 398.0 281.0 265.7Provisions & Other Liabilities 776.1 757.1 673.1Total Liabilities 3,967.1 4,036.7 3,771.5Net Assets 5,422.8 5,538.7 5,817.3

Note *: Items included in net working capital 1,212.2 1,156.1 1,361.5

Balance sheet

61

Inventory movement

52.8

82.6

0.9 (8.8)

Volume NRV adjustment movement

Jun 2017 FX

1,860.7

1,733.2

Dec 2017Rate / feed costs

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

RM $409.6MWIP 590.8FG 563.4Other 169.4

RM $494.7MWIP 542.0FG 643.6Other 180.4 $127.5M increase comprised of segmental movements:

-4.4

19.5

15.6

-23.2

104.1

15.8

$M

North Star – driven by higher volumes and prices

NZ & Pacific

Building Products – driven by lower volumes

BlueScope Buildings

ASP – driven by higher volumes partly offset by lower raw material costs

Intersegment & discontinued

62

Notes:- based on AUD/USD at US$0.7796 at 31 December 2017- excludes $115M NS BlueScope JV facilities which progressively amortises

Current estimated cost of facilities:

Approximately 6% interest cost on gross drawn debt; plus

commitment fee on undrawn part of $914M of domestic facilities of 0.87%; plus

amortisation of facility establishment fees and the discount cost of long-term provisions of $10M pa;

less: interest on cash

71

164176

9

77

641

240300

310

2H1H2H 2H2H 1H1H

448

Inventory FinanceNS BlueScope JV facilities (100%)U.S. unsecured notesBSL Syndicated Bank Facility

Receivables securitisation program:

In addition to debt facilities, BSL has $440M of off-balance sheet securitisation programs, of which $391M was drawn at 31 December 2017

FY20

Debt facilities maturity profile at 31 December 2017

FY18 FY19

A$M

FY21

63

Committed DrawnMaturity Local currency A$M A$M

Syndicated Bank Facility

- Tranche 1 Dec 2018 A$310M A$310M A$0M

- Tranche 2 Nov 2019 A$300M A$300M A$0M

- Tranche 3 Nov 2020 A$240M A$240M A$0M

US unsecured notes May 2021 US$500M A$641M A$641M

Inventory Finance Nov 2019 US$55M A$71M -

NS BlueScope JV facilities (100%)

- Corporate facilities Mar 2019 – Mar 2021 US$283M A$364M A$188M

- Thailand facilities Dec 2017 – Jan 2025 THB 4,300M A$169M A$59M

- Malaysian facilities Apr 2018 MYR 30M A$9M A$6M

Finance leases Various Various A$136M A$136M

Total A$2,240M A$1,030M

Note: assumes AUD/USD at US$0.7796

In addition to debt facilities, BSL has:– $440M of off-balance sheet securitisation of which $391M was drawn at 31 December 2017, and– other items in total debt of ($48M).

Committed debt facilities as at 31 December 2017

64

(1) Page shows full sensitivities to movement in key external factors, as if that movement had applied for the complete six months. Analysis assumes base exchange rate of US$0.77. There are other factors that impact the Company’s financial performance which are not shown. The sensitivities provided are general indications only and actual outcomes can vary due to a range of factors such as volumes, mix, margins, pricing lags, hedging, one-off costs etc.

(2) Includes US$ priced export products and domestic hot rolled coil sold into the pipe & tube market. (3) Sensitivity shows the potential impact on Australian domestic product prices (A$ priced) other than painted steels and hot rolled coil sold into the pipe & tube market. Sensitivity is subject to lags and market factors, and

is less certain particularly in the short term.(4) Includes the impact on US dollar denominated export prices and costs and restatement of US dollar denominated receivables and payables. (5) Also includes potential impact on Australian domestic product prices (A$ priced) other than painted steels and hot rolled coil sold into the pipe & tube market. Sensitivity is subject to lags and market factors, and is less

certain particularly in the short term.(6) A decrease in the A$/US$ suggests an unfavourable impact on earnings.(7) A decrease in the A$/US$ suggests a favourable impact on earnings.(8) Includes US$ priced export flat and long steel products (includes Pacific Steel products)(9) Sensitivity shows the potential impact on NZ domestic flat and long steel product prices (A$ priced) other than painted steels (includes Pacific Steel products). Sensitivity is subject to lags and market factors, and is less

certain particularly in the short term.(10) Sensitivity encompasses the component of New Zealand Steel’s annual thermal coal requirement which is imported and priced at prevailing market prices. Excludes the component coal supply which is domestically

sourced on long term contract price. (11) Also includes potential impact on NZ domestic flat and long steel product prices (A$ priced) other than painted steels (includes Pacific Steel products). Sensitivity is subject to lags and market factors, and is less certain

particularly in the short term.(12) Includes direct sensitivities for ASP and New Zealand & Pacific Steel segments, together with impact of translating earnings of US$ linked offshore operations to A$.

Indicative half year EBIT sensitivities1

Sensitivities may vary subject to volatility in prices, currencies and market dynamics –refer to pages 32 and 69

Australian Steel Products segment+/- US$10/t move in average benchmark hot rolled coil price

- direct sensitivity2 +/- $8-9M- indirect sensitivity3 +/- $7-9M

+/- US$10/t move in iron ore costs -/+ $30-31M

+/- US$10/t move in coal costs -/+ $14-15M

+/- 1¢ move in AUD:USD exchange rate- direct sensitivity4 +/- $1M6

- indirect sensitivity5 -/+ $7-9M7

Hot Rolled Products North America segment+/- US$10/t move in realised HRC spread +/- $13-14M

(HRC price less cost of scrap and pig iron)

New Zealand Steel & Pacific Steel segment+/- US$10/t move in benchmark steel prices (HRC and rebar)

- direct sensitivity8 +/- $1-2M- indirect sensitivity9 +/- $2-3M

+/- US$10/t move in market-priced coal costs10 -/+ $2-3M

+/- 1¢ move in AUD:USD exchange rate- direct sensitivity4 -/+ $1M7

- indirect sensitivity11 -/+ $2-3M7

Group

+/- 1¢ move in AUD:USD exchange rate (direct)12 -/+ $2M7

ADDITIONAL INFORMATION– SEGMENT MATERIAL

66

Key segment financial items Despatches breakdown

Australian Steel ProductsFinancial and despatch summaries

$M unless marked 1H 17 2H 17 FY 17 1H 18Revenue 2,365.0 2,553.7 4,918.7 2,565.7 Underlying EBITDA 332.0 305.6 637.6 350.6 Underlying EBIT 242.5 216.9 459.4 261.7 Reported EBIT 242.1 217.3 459.5 261.7 Capital & investment expenditure 60.2 145.7 206.1 65.2 Net operating assets (pre tax) 2,127.2 2,140.6 2,140.6 2,237.7 Total steel despatches (kt) 1,466.4 1,624.3 3,090.7 1,515.3

'000 Tonnes 1H 17 2H 17 FY 17 1H 18Hot rolled coil 247.5 258.8 506.4 281.6 Plate 121.7 140.2 261.8 146.0 CRC, metal coated, painted & other 1 664.5 677.0 1,341.4 668.7 Domestic despatches of BSL steel 1,033.7 1,076.0 2,109.6 1,096.3 Channel despatches of ext sourced steel2 73.7 70.2 143.9 83.1 Domestic despatches total 1,107.4 1,146.2 2,253.5 1,179.4

Hot rolled coil 179.6 223.1 402.7 79.0 Plate 9.2 14.6 23.8 18.6 CRC, metal coated, painted & other1 169.0 239.6 408.6 237.3 Export despatches of BSL steel 357.8 477.3 835.1 335.0 Channel despatches of ext sourced steel 1.3 0.8 2.1 0.9 Export despatches total 359.1 478.1 837.2 335.9

Total steel despatches3 1,466.4 1,624.3 3,090.7 1,515.3

Export coke despatches 265.3 314.1 579.4 250.9

1) Product volumes are ex-mills (formerly CIPA). Other includes the following inventory movements in downstream channels 11.8 10.8 22.8 (6.7)

2) Primarily long products sold through Distribution business

3) Includes the following sales through downstream channels (formerly BCDA segment): 437.3 441.2 878.5 466.2

67

53.9 261.7

28.0 216.9

Raw material costs

1H FY2018FX translation & other

(38.3)

Export prices

1.4

2H FY2017 Volume & mixDomestic prices Conversion & other costs

0.6(0.8)

87.5

32.9 261.7 242.5

Volume & mix 1H FY2018FX translation & other

(0.1)(84.1)

Raw material costs

(39.5)

Domestic prices

22.5

1H FY2017 Conversion & other costs

Export prices

Australian Steel ProductsUnderlying EBIT variance

Conversion & other costs:Cost improvement initiatives 19Escalation (43)Timing, one-off costs & other (16)

Conversion & other costs:Cost improvement initiatives 20Escalation (26)Timing, one-off costs & other (32)

Net spread increase $25.9M

Raw material costs:Coal (net of coke margin of +$19M) (45)Settlement of historical coal supply dispute1 32Iron ore (13)Scrap & alloys & coating metals (55)NRV, opening stock adj, yield & other (3)

Raw material costs:Coal (incl coke margin of +$24M) 39Settlement of historical coal supply dispute1 32Iron ore (14)Scrap, alloys & coating metals (21)NRV, opening stock adj, yield & other 18

Net spread increase $53.7M

Note: (1) cash settlement and reversal of prior year provisions

68

Jan-12

$100

$300

$200

$400

$800

$700

$600

$0Jan-04 Jan-10Jan-06 Jan-14 Jan-16Jan-08 Jan-18Jan-15Jan-03

$500

Jan-17Jan-05 Jan-07 Jan-09 Jan-13Jan-11

Indicative steelmaker HRC lagged spreadSpread: 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 HRC spread (eg

does not account for iron ore blends, realised steel prices etc), but rather is shown to primarily demonstrate movements from period to period.• SBB East Asia HRC price lagged by three months up to Dec 2017, four months thereafter – broad indicator for Australian domestic lag, but can vary.• 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 Port Hedland estimate deducts Baltic cape index freight cost from CFR China price. Lagged by three months.• Indicative hard coking coal pricing: low-vol, FOB Australia. Industry annual benchmark prices up to March 2010; quarterly prices from April 2010 to March 2011; 50/50 monthly/quarterly pricing from April 2011 to Dec 2017;

monthly thereafter. Lagged by two months up to Dec 2017; three months thereafter.

FY2013 FY2014 FY2015 FY2016 FY2017 1H FY17 2H FY17 1H FY18 Spot1

East Asian HRC price, lagged (US$/t) 603 560 497 317 419 377 462 482 597 Indicative spread with pricing lags (US$/t) 286 276 292 182 214 217 210 281 326Indicative spread with pricing lags (A$/t) 278 295 331 247 284 289 279 364 418AUD:USD (3 month lag) 1.03 0.93 0.87 0.74 0.75 0.75 0.75 0.77 0.78

Australian Steel ProductsSpot spreads have recovered on stronger steel prices after a dip driven by coal price spike

Note (1): at mid Feb 2018

A$ spread

US$ spread

69

Australian Steel ProductsUpdated view on relationships with benchmark pricing

Steel prices • Selling prices across majority of domestic product correlated with SBB East Asia HRC price; lagged generally three to five months; degree of correlation between realised and benchmark prices can vary within a given half year but is more fully reflected over the medium term

• Export sales generally moving on a two month lag to a mix of SBB East Asia HRC (majority of the influence) and also U.S. HRC pricing

Coal prices • Hard coking coal: pricing and sourcing remains somewhat fluid. General guide at present is majority monthly pricing with reference to the FOB Australia premium low volatility metallurgical coal price, on a three month lag

• PCI: on a three month lag to low volatility PCI FOB Australia index

Iron ore prices • Three month lag to index pricing (Platts IODEX 62% Fe CFR China)• Lump premium based on spot iron ore lump premium 62.5% Fe CFR China• Pellet premium based on spot blast furnace iron ore pellet premium 65% CFR China

Coating metals and scrap

• Zinc & aluminium: ASP currently uses around 37ktpa and 13ktpa of zinc and aluminium respectively. This will rise to 40ktpa and 15ktpa respectively once MCL5 is fully operational. Recommend one month lag to LME contract prices

• Scrap: generally moving on three month lag with reference to Platts HMS 1/2 80:20 CFR East Asia (Dangjin)

The raw materials ‘recipe’ to produce a tonne of hot rolled coil at Port Kembla is shown on page 71.Note that degree of correlation between realised and benchmark prices can vary within a given half year but is

more fully reflected over the medium term.

70

Dome

stic

Expo

rt

1H FY2018 Product Mix

Other inc ext sourcedPaintedMetal Coated

CRCPlateHRC

Australian Steel ProductsDespatch mix (Mt)

1.03 1.08 1.10

0.070.07 0.08

0.36

0.480.34

1.52

Domestic - BSLmanufactured

Domestic -externally sourced

Export

1H FY20182H FY2017

1.62

1H FY2017

1.47

71

Raw materials

FreightDepreciation

Conversion &overhead

Non-steel businesscosts

A$2,304m Conversion & overhead components (in orderof value):• Direct labour• Repairs & maintenance• Sales & administration• Services & contractors• Utilities• Consumables• Other

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

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

sulphate)• Externally sourced steel

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

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

Western Port to Service Centres)

Non-steel business

Steel business

A$2,566mUnderlying costs (to EBIT line)Revenue

• Export coke• Cold ferrous• By-products• Externally sourced

steel

Indicative ‘recipe’ of raw materials per output tonne of HRC:• 1.13t iron ore fines (sintering)• 0.23t lump ore (into BF)• 0.06t pellets (into BF)• 0.53t hard coking coal (into BF)• 0.11t PCI (into BF)• 0.24t scrap (into BOS), of which

45% sourced internally

Australian Steel ProductsRevenue and underlying costs 1H FY2018

72

Australian Steel ProductsMomentum holding in the Australian residential construction market

0

20

40

60

80

100

120

140

160

19851970 19801975 20201965 201520102005200019951990Source: ABS series 8731, table 11; original data; data to Dec 17 Qtr

Long-Term Dwelling Approvals: rolling 12 monthsDetached holding within long-term range

Detached Houses

Other (multi-res)

0102030405060708090100110120

Sep-13

Mar-12

Sep-12

Sep-11

Sep-14

Mar-14

Mar-15

Mar-13

Sep-17

Mar-17

Sep-16

Mar-16

Sep-15

Mar-10

Mar-11

Sep-10

Dwelling Commencements: by halvesMomentum holding

Source: ABS series 8752, table 33; seasonally adjusted data; total sectors

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

7.8

8.0

8.2

70

8090

100110

120130

140

150160

170180

190

Jan-15Jan-14 Jan-17 Jan-18Jan-13Jan-11 Jan-16Jan-10 Jan-12

A&A Building Approvals and Established House PricesRenovation activity tracks house price growth

A&A Rolling 12 Months (A$Bn)* [LHS]Sydney Price Index [RHS]#Melbourne Price Index [RHS]#

Source: # ABS series 6416, table 2; original data; 2011-12=100; data to Sept 17 Qtr, * ABS series 8731, table 38; seasonally adjusted; current $; data to Dec 17

10

20

30

40

50

60

70

80

Jan-11Jan-10 Jan-12 Jan-18Jan-15Jan-13 Jan-16Jan-14 Jan-17

expansion

contraction

ApartmentsHouses

Source: Australian Industry Group; seasonally adjusted data; data to Jan 18

‘000 ‘000

Performance of Construction IndexHouse sector activity remains expansionary

Index

Note: A&A: Alterations & Additions

73

Australian Steel ProductsNon-residential construction market rebounding

Source: ABS series 8731, table 51; original data; current $; total sectors; data to Dec 17

0

5

10

15

20

25

Sep-17

Mar-17

Sep-16

Mar-16

Sep-15

Mar-15

Sep-14

Mar-14

Sep-13

Mar-13

Sep-12

Mar-12

Sep-11

Mar-11

Sep-10

Mar-10

Non-Residential Work Done: by halvesWork in pipeline starting to translate into activity

Source: ABS series 8752, table 51; original data; current $; total sectors

Source: ABS series 8762, table 1; seasonally adjusted data; real $; total sectors

20

25

30

35

40

45

50

55

60

65

Jan-18Jan-17Jan-16Jan-15Jan-14Jan-13Jan-12Jan-11Jan-10

expansion

contraction

Commercial Sector

Source: Australian Industry Group; seasonally adjusted data; data to Jan 18

A$bn

Performance of Construction IndexCommercial activity rebounding

9

12

15

18

21

24

27

30

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Commercial & IndustrialSocial & Institutional Social & Institutional

Commercial & Industrial

Index

0

10

20

30

40

50

60

70

80

Sep-16

Mar-16

Sep-15

Mar-15

Sep-14

Mar-14

Sep-17

Mar-17

Sep-10

Mar-10

Sep-13

Mar-13

Sep-12

Mar-12

Sep-11

Mar-11

A$bn

Engineering Construction Work Done: by halvesBottomed, with infrastructure investment ramping up

Non-Residential Building Approvals: rolling 12 monthsRebound underway, especially in Commercial & Industrial

A$bn

74

0200400600800

1,0001,2001,4001,6001,8002,0002,2002,4002,6002,800

(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

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Total Australian external domestic despatch volumes (Kt) – see page 21 for 1H FY2018 data

Total construction % shown in red

2,290kt 2,624kt 2,368kt 2,311kt 2,062kt 2,158kt 2,092kt 2,191kt 2,253kt

(332)kt (330)kt (321)kt (307)kt (280)kt (259)kt (259)kt (183)kt (143)kt

1,958kt 2,294kt 2,047kt 2,004kt 1,782kt 1,899kt 1,833kt 2,008kt 2,110kt

GrossDespatches

less 1NormalisedDespatches

Australian Steel ProductsContinued focus on customer engagement is underpinning Australian demand

Non-dwelling

Dwelling

Engineering2

Manufacturing

Agri & miningTransport

63% 67%

63%

65%

65%66% 68% 70% 69%

11% (257kt)

17%(384kt)

12%(273kt)

8% (194kt)

26%(591kt)

26%(591kt)

8% (173kt)

12%(273kt)

12%(261kt)

7% (156kt)

32%(732kt)

29%(658kt)

7% (148kt)11%

(246kt)

12%(256kt)

7% (163kt)

33%(727kt)

30%(651kt)

6% (135kt)11%

(233kt)

13%(268kt)

8% (160kt)

32%(668kt)

30%(628kt)

8% (172kt)

12%(259kt)

14%(311kt)

8% (169kt)

27%(586kt)

31%(661kt)

9% (190kt)

11%(237kt)

15%(302kt)

9% (176kt)

26%(539kt)

30%(618kt)

11% (257kt)

11%(259kt)

15%(344kt)

9% (209kt)

25%(575kt)

29%(667kt)

12% (287kt)

10%(247kt)

14%(321kt)

9% (208kt)

26%(621kt)

29%(684kt)

12% (316kt)

16%(418kt)

13%(330kt)

9% (232kt)

24%(639kt)

26%(689kt)

75

Key segment financial items – A$M

North StarFinancial & despatches summary

Key segment financial items – U$M

$M unless marked 1H 17 2H 17 FY 17 1H 18

Revenue 793.9 906.9 1,700.9 860.6 Underlying EBITDA 238.6 223.1 461.7 172.5 Underlying EBIT 211.3 195.4 406.6 145.2 Reported EBIT 237.9 195.4 433.3 145.2 Capital & investment expenditure 21.1 16.8 37.8 16.4 Net operating assets (pre tax) 1,926.4 1,735.6 1,735.6 1,749.9 North Star despatches (100%, metric kt) 1,016.5 1,076.5 2,093.0 1,037.5

U$M 1H 17 2H 17 FY 17 1H 18

Revenue 598.7 683.8 1,282.5 670.5 Underlying EBITDA 180.2 168.2 348.3 134.5 Underlying EBIT 159.6 147.3 306.8 113.3 Reported EBIT 186.2 147.3 333.4 113.3 Capital & investment expenditure 15.9 12.6 28.5 12.7 Net operating assets (pre tax) 1,390.5 1,334.5 1,334.5 1,364.2

76

Spread decrease $67.9M

145.2

78.9 211.3

1H FY2017

(146.8)

2.1

Raw material costsPrices 1H FY2018FX translation & other

Conversion & other costs

(5.6)

Volume & mix

5.3

145.2

195.4

FX translation & other

1H FY2018Volume & mix

(3.4)

Raw material costs

(48.0)

Prices Conversion & other costs

(5.5)(8.7)

2H FY2017

15.4

North StarUnderlying EBIT variance

Spread decrease $32.6M

77

Key segment financial items Despatches by business

Revenue by business Underlying EBIT by business

Building Products ASEAN, North America & IndiaFinancial summary

$M unless marked 1H 17 2H 17 FY 17 1H 18

Revenue 951.0 1019.5 1970.5 1028.6Underlying EBITDA 142.1 121.8 264.0 121.6Underlying EBIT 111.3 90.4 201.7 93.3Reported EBIT 104.0 36.8 140.8 93.3Capital & investment expenditure 23.1 35.7 58.8 75.2Net operating assets (pre tax) 1097.9 1032.8 1032.8 1184.6Total Despatches (kt) 711.7 724.3 1435.9 701.0

'000 Tonnes 1H 17 2H 17 FY 17 1H 18

Thailand 188.8 196.1 384.9 180.8Indonesia 123.8 135.6 259.4 123.3Malaysia 87.2 97.4 184.6 78.3Vietnam 73.4 74.6 147.9 70.5North America 198.5 191.5 390.0 199.9India 61.7 58.0 119.6 60.4Other / Eliminations (21.7) (29.0) (50.5) (12.2)Total 711.7 724.2 1435.9 701.0

$M 1H 17 2H 17 FY 17 1H 18Thailand 220.0 243.4 463.4 245.7 Indonesia 150.5 175.9 326.3 172.3 Malaysia 117.8 134.6 252.4 121.8 Vietnam 97.3 112.7 210.0 102.9 North America 383.2 378.2 761.4 396.6 India 0.0 0.0 0.0 0.0 Other / Eliminations (17.8) (25.3) (43.0) (10.7)Total 951.0 1019.5 1970.5 1028.6

$M 1H 17 2H 17 FY 17 1H 18Thailand 21.8 19.0 40.8 15.0 Indonesia 7.2 7.2 14.4 10.1 Malaysia 15.4 12.0 27.4 7.8 Vietnam 13.7 17.2 30.9 9.6 North America 48.0 30.8 78.8 32.2 India 8.8 7.3 16.2 21.2 Other / Eliminations (3.6) (3.1) (6.8) (2.6)Total 111.3 90.4 201.7 93.3

78

93.3

88.8

111.3

Volume & mix 1H FY2018

(0.3)

Conversion & other costs

(10.2)

(115.2)

FX translation & other

Raw material costs

13.3

Domestic pricesExport prices

5.6

1H FY2017

11.2 93.3 19.4 90.4

1H FY2018FX translation & other

Volume & mixRaw material costs

3.1(6.2)

2H FY2017

2.7

Conversion & other costs

Domestic prices

(27.3)

Export prices

Building Products ASEAN, North America & IndiaUnderlying EBIT variance

Note: 1) FX translation relates to translation of foreign currency earnings to AUD, transactional foreign exchange impacts are reflected in the individual categories

1

1

Net spread decrease $20.8M

Net spread decrease $4.8M

79

Key segment financial items Despatches by business

Revenue by business Underlying EBIT by business

BlueScope BuildingsFinancial and despatches summary

Note: Saudi Building Systems has been recategorised into Buildings North America, leading to restatement of prior period financials

$M unless marked 1H 17 2H 17 FY 17 1H 18

Revenue 896.1 860.7 1,756.8 830.8 Underlying EBITDA 71.2 35.1 106.3 53.8 Underlying EBIT 49.5 14.5 64.0 33.9 Reported EBIT (13.3) 10.4 (3.0) 24.5 Capital & investment expenditure 6.1 24.7 30.8 8.0 Net operating assets (pre tax) 611.1 531.5 531.5 553.7 Total Despatches (kt) 332.1 294.5 626.6 305.7

'000 Tonnes 1H 17 2H 17 FY 17 1H 18

Engineered Buildings North America 129.2 117.7 246.9 116.2Buildings China 95.8 94.1 189.9 107.6Buildings ASEAN 19.5 16.7 36.2 10.3Building Products China (coating, painting & rollforming) 110.3 87.0 197.3 98.7

Other / Eliminations (22.7) (21.0) (43.7) (27.1)Total 332.1 294.5 626.6 305.7

$M 1H 17 2H 17 FY 17 1H 18Engineered Buildings North America 590.4 565.6 1,156.0 523.3Buildings China 131.8 142.0 273.9 173.8Buildings ASEAN 57.8 39.1 96.9 28.0Building Products China (coating, painting & rollforming) 154.7 128.1 282.8 149.8

Other / Eliminations (38.6) (14.1) (52.8) (44.1)Total 896.1 860.7 1,756.8 830.8

$M 1H 17 2H 17 FY 17 1H 18Engineered Buildings North America 43.2 19.5 62.7 31.0 Buildings China (9.9) (7.3) (17.3) 5.3Buildings ASEAN 1.7 (2.2) (0.5) (7.4)Building Products China (coating, painting & rollforming) 17.7 5.9 23.6 10.0

Other / Eliminations (3.2) (1.4) (4.6) (5.0)Total 49.5 14.5 64.0 33.9

80

Net margin increase $18.0M

Net margin increase $5.8M

33.9

77.6

49.5

1H FY2018FX translation & other

(0.3)

Raw material costs

(53.9)

(17.9)

1H FY2017 Volume & mix

(21.1)

Conversion & other costs

Prices

33.9

24.7 14.5

0.8

Prices

(9.5)

FX translation & other

Volume & mixRaw material costs2H FY2017

2.8

Conversion & other costs

1H FY2018

0.6

BlueScope BuildingsUnderlying EBIT variance

Note: Saudi Building Systems has been recategorised into Buildings North America, leading to restatement of prior period financials

81

Key segment financial items

New Zealand & Pacific SteelFinancial summary

Steel despatches

Note: The Taharoa export iron sands business generated underlying EBIT of $25.9M in 1H FY2017 and $0.3M in 2H FY2017. The business was divested on1 May 2017 and has been reclassified to discontinued operations. Accordingly, underlying results have been adjusted to exclude Taharoa’s contribution.

$M 1H 17 2H 17 FY 17 1H 18

Revenue 344.8 402.7 747.5 386.8 Underlying EBITDA 33.5 69.8 103.2 63.2 Underlying EBIT 13.6 47.5 61.1 41.0 Reported EBIT 13.6 73.6 87.2 41.0 Capital & investment expenditure 18.7 19.2 37.9 15.6 Net operating assets (pre tax) 186.6 336.4 336.4 335.0 Total steel Despatches - flat & long (kt) 276.4 328.5 604.9 307.5

'000 Tonnes 1H 17 2H 17 FY 17 1H 18

Domestic despatches- NZ Steel flat products 135.3 135.4 270.7 131.6 - Pacific Steel long products 86.8 96.3 183.1 97.5

Sub-total domestic 222.1 231.7 453.8 229.1 Export despatches

- NZ Steel flat products 48.1 80.9 129.0 55.9 - Pacific Steel long products 6.2 15.9 22.1 22.5

Sub-total export 54.3 96.8 151.1 78.4 Total steel despatches 276.4 328.5 604.9 307.5

82

7.1 41.0 6.0

47.5

1H FY2018

(3.2)

2H FY2017 Raw material costs

Export prices

(1.1)

Domestic prices FX translation & other

Conversion & other costs

Volume & mix

(10.8)(4.5)

Net spread decrease $4.8M

6.4

17.6

31.3

41.0

13.6

Export prices

(5.5)(4.8)

FX translation & other

Volume & mixRaw material costs

1H FY2018

(17.6)

Conversion & other costs

Domestic prices1H FY2017

Net spread increase $6.4M

New Zealand & Pacific SteelUnderlying EBIT variance

Note: 1) FX translation relates to translation of foreign currency earnings to AUD, transactional foreign exchange impacts are reflected in the individual categories

1

1

83

135.3 135.4 131.6

86.8 96.3 97.5

48.1

80.9 55.9

15.9

22.5 307.5

Export flat

2H FY2017

328.5

Domestic flat

1H FY2018

Domestic long

Export long

1H FY2017

276.46.2

New Zealand & Pacific SteelDespatch mix

1H FY2018 Domestic Product Mix

Painted

Metal Coated

PlateHRC

Pacific Steel long productsCRCOther flat products

84

$100

Jan-12Jan-10Jan-09 Jan-11 Jan-13 Jan-18$0

Jan-14 Jan-15

$800

$500

Jan-16

$300

$400

$600

$700

Jan-17

$200

SBB East Asian rebar price, unlagged (US$/t)

Source: Steel Business Briefing

New Zealand & Pacific SteelThe East Asian rebar price influences domestic and export long product pricing

85

Performance of Manufacturing IndexPost-election pause recently, but still expanding

Non-Residential Building Consents: rolling 12 monthsStrong investment

Residential Work Put in Place: by quartersRobust activity levels

Residential Building Consents: rolling 12 monthsPlateaued at high level

New Zealand & Pacific SteelConstruction activity remains robust

Source: Statistics NZ; original data; data to Dec 17 Source: Statistics NZ; original data; current $; data to Sept 17 Qtr

Source: Statistics NZ; original data; current $; data to Dec 17

42

44

46

48

50

52

54

56

58

60

62

Jan-10 Jan-15Jan-11 Jan-14 Jan-16Jan-12 Jan-17 Jan-18Jan-13

expansion

contraction

Source: BNZ/BusinessNZ; seasonally adjusted data; data to Jan 18

NZ$bn

Index

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Jan-12Jan-11Jan-10 Jan-17Jan-14Jan-13 Jan-18Jan-16Jan-15

5

10

15

20

25

30

35

Jan-16Jan-15 Jan-18Jan-17Jan-14Jan-13Jan-11 Jan-12Jan-10

NZ$Bn

‘000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Mar-17

Mar-13

Mar-11

Mar-10

Mar-16

Mar-15

Mar-14

Mar-12

1H FY2018 Financial Results Presentation

26 February 2018

Mark Vassella, Managing Director and Chief Executive OfficerCharlie Elias, Chief Financial Officer

BlueScope Steel Limited. ASX Code: BSLABN: 16 000 011 058