First Half FY2008 Results Presentation Period …...First Half FY2008 Results Presentation Period Ended 31 December 2007 Paul O’Malley, Managing Director and Chief Executive Officer

First Half FY2008 Results Presentation Period Ended 31 December 2007Paul O’Malley, Managing Director and Chief Executive OfficerWayne Armour, Acting Chief Financial Officer 25 February 2008

ASX Code: BSL

Page 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, 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.

TO THE FULLEST EXTENT PERMITTED BY LAW, BLUESCOPE STEEL AND ITS AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, ACCEPT NO RESPONSIBILITY FOR ANY INFORMATION PROVIDED IN THIS PRESENTATION, INCLUDING ANY FORWARD LOOKING INFORMATION, AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ON ANYTHING CONTAINED IN OR OMITTED FROM IT OR OTHERWISE ARISING IN CONNECTION WITH THIS.

Page 3

Introduction and Introduction and HeadlinesHeadlines

Page 4

3.54.1

3.52.8

1.8 1.50.9 0.8 0.4 0.6

4.8

8.0

14

16

0

2

4

6

8

10

12

14

16

18

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008YTD

Lost

time i

njurie

s per

milli

on m

an-h

ours

worke

d

Includes Contractor performance from 1996Includes Butler performance from May 2004Includes Smorgon performance from Aug 2007

Medically Treated Injury Frequency RateLost Time Injury Frequency Rate

8.2 9.36.5 5.3

1217

2222

29

9.46.5

47

52

60

0

10

20

30

40

50

60

70

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008YTD

Medic

ally t

reate

d inju

ries p

er m

illion

man

-hou

rs wo

rked

Includes Contractor performance from 2004Includes Butler performance from May 2004

Includes Smorgon performance from Aug 2007

Reported performance for IISI member companies (employees & contractors)

Safety –

Our target remains Zero Harm

NSW Manufacturing

27.9 in 2005 & 24.4 in 2006

Page 5

Sustainability –

continues to be a core activity

Water conservationclear focus on continuing to reduce fresh water consumption excellent initiatives been taken at both Port Kembla and Western Port

Greenhouse gas emissions have and will continue to be proactive and work with governments on

practical ways of reducing emissions, eg:1.

cogeneration facility in New Zealand

2.

feasibility study being progressed for a facility at Port Kembla

Further information on our progress in the “Supporting Information” section of this presentation

Page 6

Six months ended 31 December Variance2008 2007 %

Revenue A$4,734M A$4,528M Up 5% External despatches 4.0M tonnes 3.7M tonnes Up 6% EBITDA –

Reported A$502M A$794M -–

Underlying A$668M A$785M Down 15%EBIT –

Reported A$328M A$635M -–

Underlying A$494M A$626M Down 21%NPAT – Reported A$116M A$388M -

– Underlying A$305M A$384M Down 21%EPS – Reported 15.7¢ 54.7¢ -

– Underlying 41.4¢ 54.3¢ Down 24%After Tax Return on Invested Capital* 5.8% (12.6%) 17.0% (16.9%) -Return on Equity* 6.0% (15.9%) 24.0% (23.7%) -Net Operating Cashflow-

From operating activities A$600M A$697M Down 14%-

After capex / investments A$116M A$133M Down 13%Interim ordinary dividend (fully franked) 22cps 21cps Up 5%Gearing (net debt) 31.8% 35.6% -

Group financial headlines 1H FY2008 vs. 1H FY2007

* ( ) Underlying Returns

Page 7

High level reconciliation between Reported and Underlying NPAT

EBIT ($M) NPAT ($M) EPS (cps)

1H 2008 1H 2007 1H 2008 1H 2007 1H 2008 1H 2007

Reported 328 635 116 388 0.16 0.55

Unusual or non-recurring events:

Asset impairment(1) 251 0 247 0 0.34 0.00

Profit on sale of Smorgon shares(2) (128) 0 (90) 0 (0.12) 0.00

Restructure & redundancy costs 24(3) (5) 17(3) (3) 0.02(3) 0.00

Integration of Smorgon Steel’s distribution business(4)

26 0 18 0 0.02 0.00

Other (7) (4) (3) (1) (0.00) (0.01)

Underlying Operational Earnings 494 626 305 384 0.41 0.54

(1) Impairment of:China (190) – outlook for coated margins remains very tightVietnam (35) – no resolution to the tariff statusLysaght Australia (23) and Lysaght Fiji (3) – systems write-off and under performing assets

resulting in a reassessment of the future cash flows and need to impair the assets(2) Associated with the acquisition of Smorgon Distribution(3) Redundancy costs associated with closure Port Kembla No. 1 paint line ($11m) and internal restructuring

costs ($13m).(4) Integration of SSX Distribution ($7m) and recognised inter-company profit eliminations in inventory ($19m)

Page 8

Continuing to reward our shareholders as we grow

Shares on issue at listing (July 2002)

Share buy backs to 31/12/07

on market – 90m shares

off market – 26m shares

Dividend reinvestment scheme to 31/12/07

Employee share plan issues to 31/12/07

Shares on issue 31/12/07

22

18

24

7 1020 2120

9 1218

2624

13

05

101520253035404550

Interim Final Special

FY2003 FY2004 FY2005 FY2006 FY2007

22 / 7¢

30 / 10¢

42 / 20¢ 44 / 0¢

FY2008

47 / 0¢

Av price paid $6.10 / share

793m(116)m677m

+ 36m+29m742m

Total return to shareholders since BSL’s public listing (July 2002):

Share buybacks $ 707mDividends paid $ 1,621mInterim dividend (to be paid 1 April 08) $ 164m

$ 2,492m

$3.37 per share or 79% payout ratio (NPAT)

Page 9

15%

37%

4%

12%

9%

12%

11%

16%

34%

4%8%

14%

3%

21%

Exports -

Americas

Exports -

Asia

Exports –

Europe/Med/Middle East/India Australia

NA (HRPNA + C&BPNA) New Zealand/Pacific

Asia

ExternalDespatches

Key

External sales despatches by destination

Domestic sales (produced and sold within country)

Exports38%

15%

38%

4%

7%

9%

16%

11%

Exports33%

Australia

NZ

Asia

Exports - Americas

Exports ROW

Exports - Asia

Exports32%

3,544kt 3,740kt 3,989kt

North

Ameri

ca

(inc. 195kt long product sales principally into Australia (191) from Smorgon Distribution not previously included)

Note:

Percentages have been rounded.

1H-FY20081H-FY2006 1H-FY2007

Page 10

SALES TONNESPrincipal variances:

External sales volumes from our new Distribution business included 1H08

sales, into all segments, principally construction and manufacturing.improvement in manufacturing due to Distribution sales.

When you normalise, the despatch variance is explained by lower unpainted sales into the distribution channel.However, strong share recovery evident from Q2 FY2008.

Total Australian despatches by segment

Construction

60%

1H FY2007(1) 1H FY2008(1)

Non-dwelling 25%

Dwelling 23%

Engineering 12%

Manufacturing 14%

Agriculture & Mining 12%

Auto & Transport 8%Packaging 6%

Desp

atch

es ‘0

00 to

nnes

200

400

600

800

1,000

1,200

1,400

1,600

Notes: (1)

Percentages have been rounded and worked off Gross Despatches.

(2)

Stopped producing tinplate for the packaging segment in FY 2007.

Non-dwelling 26%

Dwelling 22%

Engineering 12%

Manufacturing 19%

Agriculture & Mining 12%

Auto & Transport 9%

60%

(1H08 inc. 191kt of long products sales from Smorgon Distribution)

1,415kt +5% 1,487kt(91kt) (191kt)

1,324kt (2%) 1,296kt

Gross DespatchesLessNormalised Despatches

(packaging sales)(2)

Page 11

Strategy for longer term earnings growth –

as introduced on 29 November 2007

Reinvigorate our position in the Australian/NZ markets, through ongoing focus on strengthening our customer relationships, product and service innovation and driving operational efficiency.

Continue to improve our position in select geographies in Asia and North America where we can develop a sustainable competitive advantage through a focus on profitable differentiated products and solutions for the Building & Construction sector

As in Australia, we will strengthen our market offers, improve our operations and supply chain, build our downstream businesses, support growth in Indonesia and India, in particular, and focus on improving the capability of our organisation

Evaluate further growth opportunities with priority on:Brownfield capacity expansions and M&A rather than greenfieldExpand presence in North America building products and solution markets Expanding our downstream capability in Australia and Asia New Zealand minerals development Target growth opportunities −

across our total value chain−

within our current geographic footprint

New products and solutions with a focus on sustainability.

Page 12

Other headlines

Acquisitions Smorgon Distribution (August 2007)―

integrations process on schedule

HCI Steel Building Systems, Inc (October 2007)―

integration process on schedule

IMSA Steel Corp, USA ―

closed the deal on 1 February 2008

―

toured operations and commenced integration process

Global Steel Industry Steel prices are responding to tighter supply / demand and higher raw material costs

Page 13

Blueprint UpdateBlueprint Update

Page 14

“Blueprint”

–

recap on my approach to doing business at BlueScope and significantly improving shareholder value

What we will do …

A.

Reinvigorate our Australian and New Zealand businesses

B.

Continue the improvement process across our Asia and North America businesses

C.

Grow, or acquire, new businesses that build on our distinct competitive advantage

Areas of focus

How we will do it …

1.

Increasing customer and market focus2.

Improving productivity year on year3.

Optimising return on capital

Execution excellence

4.

Building an integrated BlueScope operating system5.

Further develop organisational capability Business essentials

What we will be known for …

6.

Improve on our world class safety performance

Safety

7.

Become a recognised leader in sustainability

Sustainability

8.

Increasing shareholder value

Shareholder value

Categories of Initiatives

•

Grow domestic markets and steel penetration

•

Drive manufacturing excellence

•

Enhance the supply chain

•

Continue focus on productivity

•

Procurement optimisation

•

Improve capital planning and execution

•

Monetise surplus assets

•

Disciplined growth

Page 15

“Blueprint”

-

update

Progress report –

29 November to present:Program Management Office established

reporting to Managing Director & CEOtrack and report on:―

over 200 business improvement initiatives identified during the “test & refresh”

review; and―

synergy initiatives emanating from recent acquisitions

Project teams, to deliver key initiatives, established, eg. integrated BSL operating system, procurement optimisation and manufacturing line productivity

Performance management and incentive systemsaligned to revised KPI’sconsistent with 8 Blueprint Basics (referenced previous slide)driving accountability for all initiatives and execution plans

Generating an additional A$200m in cash from the balance sheet during FY 2009initiatives underway to deliver this target through working capital reductions and/or property sale(s)

Page 16

Reporting SegmentReporting SegmentPerformancePerformance

Page 17

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

H a lf y e a re n d e d D e c

2 0 0 6

Ho t R o lle dPr o d u c tsA u s tr a lia

Co a te d & B ld gPr o d u c ts A u s t

N Z & Pa c if icS te e l Pr o d u c ts

Co a te d & B ld gPr o d u c ts A s ia

H o t Ro lle dPr o d u c ts N th

A m e r ic a

C o a te d & B ld gPr o d u c ts N th

A m

Co r p o r a te &G r o u p

D is c o n tin u e dB u s in e s s e s

Ha lf y e a re n d e d De c

2 0 0 7

-

EBIT

A$ M

illion

s

$626m $12m

($7m)($60m) ($9m)($65m) ($18m)

$15m $494m

Business segment earnings variance –

Underlying EBIT

EBIT Movements From 1H FY2007 $414M $38M $43M $39M $112M $23M $(43)M $0M

To 1H FY2008 $354M $50M $36M $30M $47M $38M $(61)M $0MImproved

spread –

higher steel prices –

partly offset by higher iron ore & scrap

Offset by -higher freight & R&M costs -

mix –

higher exports after tinplate closure -

stronger A$

Improved spread – higher export prices –lower feed & coating costs

Addition of SSX Dist

Partly offset by -stronger A$-higher units costs

Reduced spread-higher steel prices-Offset by higher coal costs

Unfavourable NZD:US$

Reduced margins, principally in Thailand

Reduced spread North Star

Improved spread

Profit in stock eliminations

Core reasons:

Page 18

Australia Australia Hot Rolled Products AustraliaHot Rolled Products Australia

Coated and Building Products Australia Coated and Building Products Australia

Page 19

438354 354

321 313

414

0

100

200

300

400

500

600

Hot Rolled Products Australia (PKSW) –

operational strength continues to meet strong demand

Underlying performance - First half FY2008vs. 1H FY2007

EBIT reduction largely due to ―

improved spread:•

higher steel prices•

partly offset by higher iron ore and scrap costs ―

offset by•

increased freight and discretionary repairs and maintenance

•

unfavourable domestic/export mix largely due to tinplate closure 2H FY 2007

•

unfavourable exchange rate movement 0.76 to 0.87

Excellent operations performance ―

ironmake, slab and HRC production all at near record levels. Plate –

record.vs. 2H FY2007

Improvement largely due to ―

higher steel prices and increased export sales ―

partly offset by higher raw material costs

EBIT

A$ M

illion

s

MarketsDomestic

HRC to pipe and tube sales - remained strong Plate - increased market share, driven by continued strong demand from mining, port infrastructure and other segments

Exports Global slab and HRC markets - tight supply and higher raw material costs supporting higher prices (2H FY 2008)

FY08-1HFY07-2HFY07-1H

Underlying

Reported

BF No. 5 Reline Capital CostThe latest estimate is $370M (up $40m) due to a reassessment of the labour costs (driven by the current resources boom in Australia)

(1)

Notes:(1) 1HFY07 reported vs underlying variance largely due to

margin loss from exporting product due to packaging closure.

Page 20

Iron Ore:approximately 7.7mtpaindicative mix – 20% lump, 50% fines and 30% pelletsprincipally sourced from BHP Billiton. Other suppliers include OneSteel, Savage River, IOC (Rio) and Vale (CVRD)annual pricing review, with price effective from 1 July (for approx 90%)

Coal:approximately 3.4mtpa (2.7mtpa coking coal and 0.7mtpa PCI coal)principally sourced from local BHP Billiton Illawarra mines (coking coal) and Xstrata Hunter Valley mines (PCI coal)long term contracttypically annual pricing review, with price effective from 1 July

Scrap:approximately 1.0 mtpa40% sourced externally

Port Kembla Steelworks –

expected raw material usage in FY 2008

Page 21

Coated & Building Products Australia –

Improved margin management

Underlying Performance – First half FY2008vs. 1H FY2007

EBIT up 32% largely due to ―

increased spread•

higher sales prices•

lower steel feed & coating costs―

Smorgon distribution contribution―

partly offset by•

adverse mix due to clearance of imported product from 2H FY2007.

•

stronger $A•

higher unit costs―Packaging CRC not operating at capacity―West Sydney ramp-up

Distribution performance below expectations due to margin reduction to compete against imports

vs. 2H FY2007EBIT improvement

―

increased spread―

inclusion of Smorgon Distribution sales

49

-8

6

38

-5

50

-25

0

25

50

75

EBIT

A$ M

illion

s

Reported Unusual and non-recurring items in reported EBIT:―Closure of PK Service Centre paint line―Lysaght asset impairment ―SSX dist. integration ―West Sydney pre production costs Underlying

$6m

$44m$50m

$11m$23m$7m$3m

Notes:(1)

Underlying vs reported variance: -―

Erskine Park sale (-$7m)―

Packaging operating results closure (-$4m)(2)

Includes 5 months of Smorgon Distribution earnings

Reconciliation from Reported to Underlying EBIT


Underlying

Reported

(1) (2)

Page 22

Coated & Building Products Australia –

Smorgon Distribution review

BlueScope took ownership of Smorgon Distribution in early August 2007.Also very pleased that Mark Vassella and his team have joined BlueScopeFinancial performance (5 months):

Reported EBIT $3mUnusual and non-recurring items in reported EBIT:-

Integration costs $5m

-

Smorgon brand name write-off $2m

$7mUnderlying EBIT $10m

Earnings were down on 1H FY 2007 largely due to margin compression as a result of higher import competition and need to maintain share.Now getting some market traction and expecting an improved second half.Integration is going very well.

Page 23

New Zealand New Zealand New Zealand Steel & Pacific Islands New Zealand Steel & Pacific Islands

Products Products

Page 24

New Zealand and Pacific Islands Products –

improved front end operating performance continues

Underlying performance – First half FY2008vs. 1H FY2007

EBIT down 16%, largely due to ―

reduced spread•

higher prices•

offset by higher coal cost―

unfavourable movement in NZD:USDslab production up 6% - improved operating practices.

vs. 2H FY2007Same as for 1H FY2007

43 47 4443 4736

0

25

50

75

100

EBIT

A$ M

illion

s

MarketsDomestic – conditions softer than 1H FY07, largely due

to import competition and residential slowdown. Export - very strong demand for HRC


Underlying

Reported

Reconciliation from Reported to Underlying EBIT

Reported A$44mUnusual and non-recurring items in reported EBIT:- Redemption of preference shares by MIL

investment A($11m)- Fiji Asset Impairment

A$

3m

A($8m)Underlying A$36m

Page 25

Asia Asia Coated & Building Products AsiaCoated & Building Products Asia

Page 26

Coated and Building Products Asia –

its all about market development and margin management

MarketsApart from Thailand, all regional markets remain strong.


EBIT reduction of 23% largely due to ― reduced margins, principally in Thailand

operations performance – excellent across the board

vs. 2H FY2007the EBIT increase is largely due to improved performance from the Butler PEB business in China

3111

3913 30

-195-225-200-175-150-125-100-75-50-25

0255075

EBIT

A$ M

illion

s

Reported (A$195m)Unusual and non-recurring items in reported EBIT:Asset Impairment ―China A$190m―Vietnam A$ 35m

A$225mUnderlying A$30m


Underlying

Reported

Reconciliation from reported to underlying earnings:

Notes:(1)

The FY07-1H Underlying vs Reported variance relates to pre-operating and business development costs (principally China coated development).

(1)

Page 27


regional performance

Thailandgeneral election 23 Dec 2007 & coalition government formed Jan 08increased exports to India & Europe significant improvement in operationssecond half economic conditions remain soft

Indonesia strong domestic marketoperating at capacity. Sourcing product from BSL Vietnamsecond metal coating line remains on schedule

Malaysia domestic sales down due to flat construction market exports to South Africa increased strong operations performance

Vietnam intense competition and unfavourable tariffsoutstanding operations performance with metal coating line at capacitysupplied 17kt of product to BlueScope’s Indonesian business

China Coated

― improved sales largely due to increased sales force and new products

―margins continue under pressure as feed cost rises

Buildings (PEB)―strong sales and order intake ―stronger margins due to tighter process

controls and financial discipline India

PEB facilities are operating at full capacity due to strong demand. new coating lines now due to be completed in CY 2010.

Page 28

North America North America Hot Rolled Products Hot Rolled Products

Coated & Building Products Coated & Building Products

Page 29

Hot Rolled Products North America –

Scrap to HRC price spread squeezed in 1H FY 2008

MarketsSoftening, albeit North Star despatches increased 4% on 1H 2007.

Underlying performance- First Half FY2008vs. 1H FY2007

North Star BlueScope−

63% EBIT reduction A$38m vs A$102m was due to lower spread•

higher scrap prices •

lower HRC prices −

Continued strong operations performance −

Voted No. 1 in Jacobson Survey for sixth year in a row

Trading offices−

Product sold•

Americas –

512kt (principally slab & HRC)•

Europe –

179kt (HRC & coated)−

Strong demand for BSL products−

Increased HRC sales to Steelscape in 2H FY08 due to IMSA purchase.

Castrip−

Nucor making outstanding progress on both quality and throughput.

vs. 2H FY2007 (North Star)Lower EBIT due to spread contraction

112

68

47

112

68

47

0

20

40

60

80

100

120

140

EBIT

A$ M

illion

s

This segment includes:North Star BlueScope Steel (50% interest)Castrip LLC and North American and European sales offices


Underlying

Reported

Page 30

Coated and Building Products North America –

a very strong half

Markets (100% sales to non-residential)Non-residential market remained strong for most of half.Building’s market share increased by approx 1%Total despatches up 3% vs 1H FY 2007Softer market conditions expected in 2H


EBIT up 65% largely due to ― Increased spread ie. sales prices increases

exceeding cost raw materials ― lower conversion costs

•

higher volumes; and •

lower costs in the Mexico facility ―partly offset by unfavourable foreign exchange

movement strong operations performance continues

vs. 2H FY2007significant improvement due to

― increase in despatches ― lower conversion costs

IMSA Steel Corp acquisition

2314

43

2314

38

-20

-10

0

10

20

30

40

50

60

EBIT

A$ M

illion

s

HCI Steel Building Systems, a steel PEB company in North America, was acquired by BSL in October 2007.IMSA Steel Corp was acquired by BSL in February 2008.

Notes: (1)

All EBIT numbers normalised to exclude Vistawall business earnings. This business was sold in June 2007.

(2)

1H FY08 difference of $5m represents a write back of over provided liabilities re Butler’s UK pension fund.


Underlying

Reported

Page 31

Coated & Building Products North America –

IMSA Steel Corp Acquisition

―

BlueScope Steel has acquired the outstanding shares of IMSA Steel Corp from Ternium S.A, a NYSE-listed public company, effective February 2008.

―

IMSA Steel Corp has four distinct businesses in North America:

–

Varco Pruden (VP) Buildings: manufacturer of pre-engineered steel buildings (PEBs) to the non-residential construction market.

–

Steelscape: West coast producer of metal coated and painted steel coils. Steelscape currently sources approximately 50% of its hot rolled coil from BlueScope Steel’s Port Kembla Steelworks.

–

MetlSpan: manufacturer of insulated steel panels for commercial, industrial and cold storage buildings.

–

ASC Profiles: manufacturer of building components including architectural roof and wall systems and structural roof and floor decking.

―

I would like to welcome all employees to the BlueScope Group.

Page 32

Coated & Building Products North America –

IMSA Steel Corp Acquisition (cont….)

Recap the dealcost US$730m (A$815m as at 1 February 2008)funded by a 12 month bridge facility ―gearing will increase to approx 40%

expected EPS outcome―EPS neutral, pre-AIFRS adjustments, in FY 2008 ―EPS accretive from FY 2009

expecting significant synergies to be achieved―EBITDA upside of approx. US$40m p.a. within 3 years

high quality assets providing a platform for further growth in North AmericaPlease refer to 20 December 2007 presentation, available on our web site, for further information.

Page 33

BlueScope’s global debt facilities –

maturity schedule

Maturity date

Working Capital Facilities AUD 350 Oct-08

Loan Note Facility Tranche 1 - 364 day AUD 92 Dec-08 Tranche 2 - 3 year AUD 550 Dec-08 Tranche 3 - 5 year AUD 550 Dec-10

1,192

US Private Placement Series A USD 100 Jul-11 Series B USD 200 Jul-14

300

Bridging Facility USD 730 Feb-09

Amount ($m)

Refinancing required in calendar year 2008

Page 34

0

20

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$0

$20

$40

$60

$80

$100

$120

46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 761944 80 82 84 86 88 90 92 94 96 98 200002 04 06 2008780

200,000,000400,000,000600,000,000800,000,000

1,000,000,0001,200,000,000

“POST WAR INDUSTRIALISATION” “OIL SHOCKS”“CHINA & EMERGING

ECONOMIES”

“5-8% GROWTH” “NO GROWTH”“5%

GROWTH”

IndustryConsolidation

Global Steel IndustryGlobal Steel Industry

World steel demand

It is all about supply & demandDE

MAND

SUPP

LY

Page 35

In summary –

the outlook is

China

Steel demand remains strong

Raw steel production growth slowing

Evidence of higher spot raw material costs making some provincial steel plants uneconomic

China’s industrialisation process steaming ahead

China’s steel exports expected to fall significantly in CY2008.

Rest of World

Consolidation to continue

Continued production discipline

Russian economy using more steel

Middle East demand strong

India indicates a potential need to import steel

But, North America outlook uncertain

Steel prices are reacting strongly to raw material cost increases and tighter slab / HRC supply / demand conditions.

Page 36

BlueScope SteelBlueScope Steel’’ssFinancial ResultsFinancial Results

Page 37

Earnings performance leveraged to steel price spreads

(1)

Includes EBITDA & EBIT for North Star BlueScope Steel but not revenue, which was A$38M (1H 2008) vs. A$102M (1H 2007)

(2)

Includes two months of BlueScope Butler financial results.(3)

Operating numbers represent Reported numbers adjusted for unusual or non-recurring events to reflect underlying financial performance from ongoing operations

(4)

Includes five months of Smorgon Distribution financial results.

A$ Millions FY2003 FY2004 (2) FY2005 FY2006 FY2007 2007-1H 2008-1H

Revenue 5,302 5,770 7,964 8,031 8,913 4,528 4,734

EBITDA (1) 881 1,104 1,655 850 1,423 794 502

EBIT (1) –

Reported 611 818 1,358 556 1,099 635 328

–

Underlying (3) 1,559 840 1,057 626 494

NPAT –

Reported 452 584 982 338 686 388 116

–

Underlying (3) 1,129 555 643 384 305

EPS (cps) –

Reported 57.1 77.8 134.0 47.9 95.3 54.7 15.7

EPS (cps) –

Operating (3) 154.0 80.0 89.3 54.3 41.4

(4)

Page 38

Reconciliation from Reported to Underlying EBIT for first half FY2008

EBIT $M

$328m

$251m

$494m$13m $3m

($5m)

$26m

($128m)

$6m$11mChina MCL 190Vietnam MCL 35Lysaght Australia 23Fiji 3

Integration costs 5Profit in stock eliminations 19 Smorgon Brand impairment 2

West Syd P/L Pre-ops 3M&A costs 3

($11m)

Page 39

Asset impairment process

Detailed business and market review undertaken as part of the half year process.Based on higher of:

estimated future cashflows discounted at WACC plus country risk premium; or estimated recoverable value

Subject to scrutiny by external auditors who test forecasts against actual performance

China MCLOutlook for premium product margins remain very tight as competition intensifies

Lysaght Australia Medium term outlook for Lysaght home improvement business is low due to soft NSW building market and loss of business expertise.Movex ERP system impairment due to intention to migrate to BlueScope Distribution ERP

Vietnam MCLNo resolution to the tariff statusPremium product demand growing slowly and margins remain tight

Lysaght Fiji Outlook reflects continued political unrest and low economic growth

Under AIFRS impairment of physical assets can be reversed if conditions improve However impairment of goodwill cannot be reversed.

Page 40

0

100

200

300

400

500

600

700

800

Half year endedDec 2006

Export Prices DomesticPrices

Raw MaterialCosts

Volume / Mix NSBSS Conversion &Other Costs

ExchangeRates

Other Half year endedDec 2007

$626m

$128m

$494m

($76m) ($11m)

($24m)($40m)

($64m)

$10m

($55m)

Underlying EBIT variance 1H FY2007 to 1H FY2008 by itemEB

IT A

$ Milli

ons

Net Spread improvement $62mPrice (42)Scrap (22)

Iron Ore (44)Coal 17Steel Feed

(35)Coating metals

19Scrap/alloys

(21)Inventory movement (12)

Escalation (47)Improvement initiatives 46One off/discretionary (47)Other (mainly freight)

(7)

Volume 27Mix

(38)

Page 41

Cash –

strong operating cash flows have been reinvested in the business

(1)

Purchased 19.9% shareholding in Smorgon Steel in August 2006, disposal in August 2007. (2)

Reflects shares issued under the shareholder dividend reinvestment plan ($49M) and the full underwriting of the FY2006 final ordinary dividend ($119M).(3)

Includes shares issued under the shareholder dividend reinvestment plan ($60m) and general employee share plan ($5m).(4)

Reflects capital injection by minority interests in subsidiaries.(5)

All periods normalised to reflect sale of receivables program cash flow movements as debt.

A$ millions 2003 2004 2005 2006 2007 2007-1H 2008-1HCash from operations 795 1,012 1,671 901 1,364 752 617Working Capital Movement (31) (94) (432) (98) (21) (55) (17)Net operating cash flow 764 918 1,239 803 1,343 697 600Net investing cash flows- Capital & investment

expenditure(209) (585) (663) (816) (493) (283) (934)

-

Smorgon shareholding(1) - - - - (319) (319) 447

-

Other 44 7 41 23 271 38 3Net cash flow before

financing & tax599 340 617 10 802 133 116

Net financing cash flow (468) 309 348 870 (506) (23) 142Payment of income tax (29) (119) (312) (356) (229) (126) (139)Share buy-back (26) (259) (327) (96) - - -Share issues - - - - 221 168 65Dividends- Ordinary (75) (191) (273) (314) (321) (169) (191)- Special - (53) (75) (142) - - -Other (4) - - - 2 2 2 -Net increase in cash held 1 27 (22) (25) (31) (15) (7)

Page 42

As at A$ Millions 30 June 2007 31 December 2007

Assets Distribution Acquisition Total

Cash 36 41 Receivables 1,269 262 1,274 Inventory 1,271 255 1,519 Other Assets 1,259 (40)(1) 1,136 Net Fixed Assets 3,671 73 3,448

Total Assets 7,506 550 7,418

Liabilities Creditors 881 219 901 Interest Bearing Liabilities 1,538 303 1,745 Provisions & other Liabilities 1,222 28 1,118 Total Liabilities 3,641 550 3,764

Net Assets 3,865 - 3,654

Balance sheet –

lower gearing even with acquisition of Smorgon Steel distribution

Net Debt / (Net Debt + Equity) 35.6% 31.8%

SSX Distribution offset by reduction

in other receivables

Impairment write-downs

Will increase to 40% following IMSA funding

(1)

Other assets mainly comprise goodwill on acquisition ($388m) less divestment in Smorgon Steel shares ($447m)

SSX Distribution largely offset by

reduction in other creditors

Payment of employee and

restructure provisions

Page 43

EBIT remains sensitive to realised hot rolled coil prices, raw material costs and US$ movements

(1)

The change in export HRC price assumes proportional effect on export slab, and flow on to domestic pipe and tube market and to other export products. This does not include the potential impact on other Australian domestic prices, as the flow on effect in the short term is less certain.

(2)

The movement in the Australian dollar/US dollar exchange rate includes the restatement of US dollar denominated receivables and payables, the impact of translating the earnings of offshore operations to A$, and exchange rate movements embedded in domestic pipe and tube prices denominated in A$.

(3)

Coal and iron ore US dollar prices are predominantly locked in for FY2008.

Estimated impact on forecast EBIT

(A$mil)

Assumption

+/– US$25 / tonne movement in BlueScope’s average realised export HRC price (1)

+/– US$10 / tonne movement in NSBSL HRC price to scrap spread

+/– 2% movement in steel production in Australia, New Zealand & USA+/– US$10 / tonne movement in coal costs+/– US$10 / tonne movement in iron ore costs

85

11

284590

Full Year (current)

Full Year (previous)

11

284590

85

(3)

(3)

+/ 1¢

movement in Australian dollar / US dollar exchange rate(2) 14– 12

FY08 FY08

Page 44

SummarySummary

Page 45

Summary / Outlook

Reasonable start to the yearunderlying first half profit in line with market expectations

Asia – detailed performance review in progress with management changes to bolster capability.Very pleased with the 3 acquisitions

Smorgon DistributionHCI IndustriesIMSA

“Blueprint”Establishing infrastructure and deliverables.

Second half FY 2008 outlookExpecting increased earnings vs 1st half largely due to―

stronger global steel prices, principally from Q4 2008.•

North Star’s performance dependant upon relative movements between steel and scrap prices

―

improved contribution from Smorgon Distribution and Coated Australia, and a contribution from the IMSA assets (Feb –

June 2008)Butler North America’s order book remains strong but key market indicators are softening.Potential issues―

Stronger A$―

Higher feed and zinc and aluminium costs for coated businesses

Page 46

Questions & Answers Questions & Answers


ASX Code: BSL

Page 48

Supporting InformationSupporting Information

Page 49

Reporting SegmentsReporting SegmentsAdditional InformationAdditional Information

Page 50

0

100

200

300

400

500

600

700

800

Half year ended Dec 2006 Domestic Prices Volume / Mix Conversion & Other Costs Other Half year ended Dec 2007

$635m

$128m

$328m

($76m) ($11m)

($24m)($40m)

($64m)

$10m

($55m)

($175m)

Reported EBIT variance 1H FY2007 to 1H FY2008 by itemEB

IT A

$ Milli

ons

Net Spread improvement $62m

Page 51

Hot Rolled Products Australia (PKSW) –

underlying EBIT variance analysis

1H FY2008 vs. 1H FY2007

Underlying EBIT down 14% to A$354M

EBIT

A$ M

illion

s

0

100

200

300

400

500

600



Raw MaterialCosts

Volume Mix Conversion &Oth Costs

ExchangeRates


-

$414m$41m

$354m

($10m)

($2m)

($52m)

$6m($10m)

$16m

($49m)

Spread improvement +$8mIron Ore (44)Coal 26Inventory movement/revaluation

(10)Scrap

(16)Alloys (5)

Discretionary R&M, consumables & Other

(31)No. 5 BF support

(10)Freight (11)

Shift to export after closure Tinplate 2H07

Page 52

0

20

40

60

80

100

120

140



Raw MaterialCosts


ExchangeRates


$38m

$30m

$50m

($10m)

$19m

($9m)$14m

($12m)

($1m)($19m)

EBIT

A$ M

illion

s

1H FY2008 vs. 1H FY2007

Underlying EBIT up 32% to A$50m

Coated and Building Products Australia -


Higher units costs ―

Packaging cold mill & West Sydney ramp up (27)

Cost reductions 11Other 4

Spread Improvement +$43m

Lower feed 3Lower coating costs 11

Increased imports from 2H FY07 (9)

Profit in stock elimination (11)Other 1

Page 53

0

20

40

60



Raw MaterialCosts


ExchangeRates


$43m

$36m

($5m)($1m)

$3m

$3m

($10m)

$3m

New Zealand and Pacific Islands Products –


1H FY2008 vs. 1H FY2007

Underlying EBIT down 16% to A$36m

EBIT

A$ M

illion

s

Spread contraction ($7m)

Coal (10)

Page 54



1H FY2008 vs. 1H FY2007

underlying EBIT down 23% to A$30m

EBIT

A$ M

illion

s

0

10

20

30

40

50

60

70



Raw MaterialCosts


ExchangeRates


$39m$4m

$30m

($18m)

$13m

($2m)($10m)

$2m

$4m

($2m)

Spread Contraction ($12m)

Steel feed costs

(18)

Page 55

0

20

40

60

80

100

120

140

Half yearended Dec

2006

Export Prices North StarSpread

Conversion &Oth Costs

Raw MaterialCosts

ExchangeRates

Other Half yearended Dec

2007

-

Hot Rolled Products North America –


(North Star BlueScope 50% only)Sales revenue down 17% to A$310MUnderlying EBIT down 63% to A$38M1H FY2008 annualised return on net assets (pre-tax) 32%

This segment comprises:North Star BlueScope Steel (50% interest)Castrip LLC and North American and European sales offices

1H FY2008 vs 1H FY2007 EBIT variance analysis

EBIT

A$ M

illion

s

$112m $2m

($64m)

$1m

($2m) ($1m)

$47m

($1m)

Page 56

0

10

20

30

40

50

60



Raw MaterialCosts


ExchangeRates


$23m

$38m

($3m)

$5m

$2m$20m

($5m)

($4m)

Coated and Building Products North America –


Comprises:Butler buildings

1H FY2008 vs. 1H FY2007 underlying EBIT variance

EBIT

A$ M

illion

s

Spread improvement +$17m

Page 57

Other Supporting Other Supporting InformationInformation

Page 58

External reporting business segments were not changed for 1H FY2008 results

Corporate / Group

Hot Rolled Products

Australia

Leading supplier of flat steel in AustraliaGlobal scale

Port Kembla Steelworks

New Zealand & Pacific Islands

Products

Only fully integrated flat steel maker in New ZealandLeading domestic market share of flat products

Glenbrook, NZPacific Islands

Pre-eminent global designer / supplier Pre-engineered buildingsNo 2 position in North America and no. 1 in ChinaIMSA assets (from Feb 2008)

Butler buildingsVarco Pruden BuildingsMetlSpanASC ProfilesSteelscapeHCI

Coated & Building Products

North America

Australia New Zealand Asia North America

Hot Rolled Products

North America

50:50 joint venture with Cargill Inc.Again voted no. 1 flat rolled steel supplier in North America (Jacobson Survey)

Delta, Ohio

North American and European Export Trading Offices

Coated & Building

Products Asia

Pre-eminent seller of branded steel in AsiaLower cost “backward integration” growth strategy

Indonesian, Malaysian, Thailand and Vietnamese operationsChina, including ButlerLysaght AsiaIndia – Tata BlueScope JV

Largest supplier of metallic coated and painted steel in AustraliaLeading market shares in most key products

Western PortSpringhillLysaght AustraliaService CentresSmorgon Distribution

Coated & Building Products Australia

Page 59

Port Kembla Steelworks -

despatches by half year

External Product Sales Mix

Slab 54% 42% 31% 29% 32%HRC 35% 45% 53% 55% 56%Plate/Other 11% 13% 16% 16% 12%

0200400600800

10001200140016001800200022002400260028003000

FY06-1H FY06-2H FY07-1H FY07-2H FY08-1HInternal Customers Domestic Customers Exports Customers *

(kto

nnes

)

2,6892,579

43% 45%

16% 15%

40%41%

* Including BlueScope Steel Asia feed

2,600

47%

21%

32%

50% 45%

18%18%

32% 37%

2,609 2,608

40% sold domestically and 60% exported, with geographic split being:

Asia 42%USA 36%Other 22%

100% exported, with geographic sales split

Asia 68%

USA 32%

Other 0%

Page 60

Australia Hot Rolled Products Australia –

net annual movements in PKSW raw material costs

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008E

S&A Conversion Costs Despatch & Freight Raw Materials *

-3%

+36%

+34%

+2%-2%

(1)

Includes iron ore, coal, scrap and alloys but not scrap purchased on behalf of OneSteel.(2)

The favourable movement in raw material cost reflects the favourable movement in exchange rate more than offsetting the increase

in raw material costs.

(1)

(2)

Page 61

Australia -

Hot Rolled Products Australia -

product flow (Indicative) 1H FY2008

Port Kembla Steelworks2.6mt slab 1H FY2008

(2.7mt slab 1H FY2007)

Hot Strip Mill 53%

(53%)

Plate Mill9%

(9%)

C & BP Australia (1)

(Springhill & Distribution)

41% (48%)

Domestic HRC23%

(26%)

Export HRC36%

(26%)Notes:(1)

“C&BP Australia”

is Coated and Building Products Australia(2)

Included 134kt internal sales to BlueScope’s Thailand operations

Export Slab 17%

(16%)

C&BP Australia (1)

(Western Port)21%

(22%)

C & BP Australia (Distribution)

19% (0%)

Domestic Plate 70%

(85%)

Export Plate11%

(15%)

(2)

Page 62


Blast Furnace No. 5 reline and cogeneration plant

1. Blast Furnace No. 5 Reline remains on target for March 2009 (CURRENT EXPECTATION)Total capital cost A$370m ($106m spent by end of FY 2007). The increase from $330m to $370m reflects expected increase in labour costs largely due to the resources boom in Australia. Depreciated over 20 years.The project will take approx. 100 days, commencing in March 2009 and finishing June 2009.Expected lost slab production (shutdown and ramp up) is approx 680kt, reflecting part offset from increasedBF No. 6 production and higher scrap use in basic oxygen steelmaking.At this stage a number of export customers will be affected during this exercise. Have contacted our customers who will make alternative arrangements during the reline project. Domestic external sales are not expected to be materially affected.Major raw materials impact:

expect to purchase approx 700kt less iron ore (principally fines and pellets) than the 7,700kt purchased in 2007 and expected in 2008;approx 65kt of additional scrap purchased; andpresent intention is not to change coal consumption and to export excess coke (approx 240kt). However, if coke margins don’t meet our requirements at the time then we would reduce our coking coal purchases by up to 300kt.

2. Co-generation plantFeasibility study continues

Page 63

Port Kembla Steelworks -

Blast Furnace No. 5 reline

Page 64


Sinter Plant Upgrade

3. Sinter Plant Upgrade (CURRENT EXPECTATIONS)Main shutdown planned for April – May 2009 (approx. 35 days)Coincide with BF No. 5 reline, when demand for sinter is reduced.Total capital cost A$134m.What is planned? Principally:

lengthen & deepen the strand, refurbish cooler install new strand feed device, ignition furnace install 2 new raw material conveyor sequences

Where? On No. 3 sinter machine at PKSWis single source of 5.3mtpa of sinter for BF’s No. 5 & No. 6currently the typical blast furnace burden mix is: −

57% sinter (fines based); 25% pellets; 18% lump Outcome post upgrade:

increased sinter production by 1.1 mtpa to 6.6mtpa (capacity is expected to be 5.5mtpa by end CY 2008)this will require + 1.1 mpta of fines BUT would displace 1.0 mtpa of pellets (in FY07 the fines to pellet price differential was approx US$30/t).Increased Pulverized Coal injection rates (cost saving as use more thermal and less coking coal) due to blast furnace permeability being improved by higher quality sinter.

Sinter

Sinter is an agglomeration of fine ores, fluxes (limestone and sand) and fuels fused together by heat.

Page 65

Exit End

•

Rebuild cooler

•

Increase Width

•

Increase Fan Power

•

Relocate Lowering wheel and extend

building

•

New cooler feed chute

Entry End

•

New Ignition Furnace

•

New Strand Feeding Device

Precipitators

•

Refurbish zones 2, 3 & 4 -

R&M

•

New Zone 1

•

Modern ElectricsStrand

•

Increase Height

•

Increase Length


Sinter Plant upgrade

SINTER : AGGLOMERATION OF FINE ORES, FLUXES (LIMESTONE AND SAND) AND FUELS FUSED TOGETHER BY HEAT.

Page 66

Australia –

Hot Rolled Products Australia -

Slab and HRC price benchmarks

The following Steel Business Briefing prices continue to be a reasonable public benchmark for BlueScope’s domestic and Asian HRC prices (noting this can change over time).

HRCSteel Business BriefingHRC East Asia Import CFR

SLAB Steel Business Briefing Slab East Asia Import CFR

Asian HRC Benchmark Price

$0

$100

$200

$300

$400

$500

$600

$700

$800

Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08

US$

/mt

SBB HRC East Asia Import CFR

Source: Steel Business Briefing

Page 67

Coated Australia –

Project update

West Sydney Colorbond Facility Plant handed over to manufacturing team and paint on strip August 2007Capital cost $150m (including land, buildings and processing equipment)Nameplate capacity up to 120,000 tpa− technical ramp up is expected to take 2 years but will also be subject to the market.

Capability to meet 24hr delivering orders vs typically longer lead times at Springhill.

Service Centre Paint Line (Port Kembla) closure To be clear, this is not the Springhill paint line but a second line in Port KemblaOldest and most cost inefficient paint line in BSL networkAdopted a staged approach to closure, ie. over 12-24 months.Initially change from 7 to 5 days continuous production.Approx 90 employees will be affected.

Page 68

Our customers are our partners

Our Market OfferHigh quality productsAdvertising / promotional supportServiceDeliverySatisfaction WarrantyTechnical Support

Creating New productsNew markets

TUBEFORM®

XLERPLATE®

http://www.dtggroup.com/tpg/imagedatabase/resultsd.cfm?record=50007&page=1

Page 69

Export Hot Rolled 34% (6%+28%)

Domestic Pipe4%

Domestic Hot Rolled8%

Export Cold Rolled14% (1%+ 13%)

Domestic Cold Rolled12%

Coating lines74%

New Zealand Steel (FY2007) product flow*

Export Metal Coated13% (8% + 5%)

Domestic Painted20%

Domestic Metal Coated61%

ExportIron Sand

Concentrate0.8mt

Export Vanadium Slag

15 kt

Mine SitesIron Sand Concentrate

2.0mt

New Zealand Steel0.6mt Slab

0.6mt Hot Rolled

Cold Strip Mill54%

* Indicative annual prime production and sales (t)

Export Painted6% (4%+2%)

(External % + Internal %)

Page 70

NZ Iron Sands feasibility studies underway, project teams are revitalised

The abundant iron sand resource at New Zealand Steel is an increasingly valuable asset in the BlueScope Steel portfolioThere are a number of “brownfield” opportunities to better exploit this strategic resource to increase the production of:

slab and / or pig iron;vanadium bearing slag / vanadium pentoxide;ironsand exports;and new products such as titania slag and zircon

2 projects currently in feasibility stage of the approval process (Vanadium converter and Taharoa iron sands expansion)4 projects in concept or pre-feasibility phases (Vanadium pentoxide, Titania, Iron Make, Pig Iron)

Glenbrook Taharoa

Page 71

Natural Gas Consumption (MMBTU per ton, FY)

2002 2003 2004 2005 2006 2007 2008

Electricity Consumption (KWH per ton, FY)

2002 2003 2004 2005 2006 2007 2008

Tap to Tap Time (minutes)

2001 2002 2003 2004 2005 2006 2007 2008

EAF Power on Time per Heat (Minutes of Power Used per heat))

2001 2002 2003 2004 2005 2006 2007 2008

North America -

North Star BlueScope Steel –

EAF operational excellence

Focus on energy management given recent spike in electricity and natural gas prices

Page 72

North America –

acquisition of HCI Steel Building Systems, Inc

On 1 November 2007 BlueScope acquired privately owned HCI Steel Building Systems Inc. (a pre-engineered steel buildings business)

HCI designs & manufactures steel PEB’s for heavy industry, commercial and community segmentsGenerated sales revenue approx US$40m in FY 2007.Regional focus – northwest USA and western Canada, which strengthens Butler’s position in the region

An excellent fit for our PEB business in North America.

Truck Service Centre Dawson Building – Skeleton Steel Dawson Office Building

Page 73

Water conservation –

clear focus on further reducing fresh water consumption


Total Water Use (ml/day) for process and cooling

Western Port Operation

$21.5 million water recycling project with South East Water, including funding from Victorian Government.

Project expected to be competed in 2009.

50% REDUCTION IN FRESHWATER CONSUMPTION

Salt Water96%

Waste Water 2%

Fresh Water2%

PLANNED 60% REDUCTION IN FRESHWATER USAGE

Page 74

Donates 200 rainwater tanks a year to Australian primary schoolsA kick start to schools’water conservation and education programs1920 schools registered –30% of all primary schools540,000 students involved120 tanks allocated to date

www.tankaday.com.au

Our Communities -

BlueScope Tank a Day challenge helping young Australians conserve water.

Page 75

$200 million already spent to reduce energy demand. For example:70% of our New Zealand operations electricity needs produced on-site by co-generation from captured process gasses.

Other sustainability initiatives include:100% of metallic scrap and slag material is recycled. Funding research in lower carbon steel technology.

NZ STEEL – EXTERNALLY PURCHASED AND INTERNALLY COGENERATED ELECTRICITY

Apr-Mar Year

0

200

400

600

800

1000

1200

1990/91 1992/93 1994/95 1996/97 1998/99 2000/01 2002/03 2004/05 2006/07

GWhInternal

Cogeneration

Purchased Energy

New Zealand Steel and sustainability –

benefits of cogeneration

Page 76


Co-Generation Plant

ProcessSteam

Electricity Up to 220MW

Surplus process gasfrom iron & steel making

Proposed Port Kembla Steelworks Co-Generation Plant

12 months feasibility study underwayReduce approximately 800,000 tpa CO2 equivalent One of the largest GHG reduction projects in Australia - equivalent to taking 185,000 cars off the road Total investment in the range of $700m -$1,000mA workable Government policy for trade exposed industries is a critical part of assessing this major investmentWe will continue to look for projects that will reduce CO2 emissions

PKSW Cogeneration plant –

technology led solution that will displace greenhouse gas emissions…

Page 77

IndonesiaMetal Coating 100kt (+165kt)

Painting 40kt

(+120kt)

Western PortHot Rollling 1.43mtCold Rolling 1.0mtMC (3 lines) 830kt

Painting (2 lines) 330kt

SydneyPaint Line (1 Line) 120kt

New Zealand/PacificIron Sand MiningRaw Steel 625ktHot Rolling 750ktCold Rolling 360kt

Metal Coating 230kt Painting 60kt

Hollow Sections 45ktPacific Roll forming sites 3

Port Kembla/IllawaraRaw Steel 5.2mt

Hot Rolling 2.8mt Plate 360kt

Cold Rolling 960kt (240kt)(1)

MC (3 lines) 750kt PL (2 lines) 207kt

Australia7 Service Centres41 Lysaght Sites

7 BlueScope Water90 Distribution Sites

VietnamMC 125ktPainting 50kt

ChinaMC 250ktPainting 150kt

ThailandCold Rolling 350kt

Metal Coating 375ktPainting 90kt

MalaysiaMetal Coating 150kt

Painting 60kt

BrisbanePainting 90kt

• Coated and Building Products North America

• North Star BlueScope JVHot Rolling 1.80mt (100%)

• Castrip JV w Nucor

Unique production footprint in the world’s fastest growing regions

Asia24 Lysaght and

PEB Sites

IndiaMetal Coating 250kt

Painting 150kt

(1)

Includes CRC from packaging cold mill

Page 78

BlueScope Steel China footprint

BlueScope Steel in China1 Metal Coating/Painting Line Facility4 Lysaght Manufacturing Facilities3 Butler PEB Manufacturing Facilities60 Butler/CSC Sales Offices24 Butler District Offices/Sales Office

1H FY 2008

REVENUE:

A$234M

EBITDA:

(A$174M)

EBITDA –

Underlying:

A$9M

EMPLOYEES:

1,940

INVESTED CAPITAL:

A$207M

GUANGZHOU

SUZHOU

Page 79

BlueScope Steel North American footprint

MI

FL

DEMD

KY

ME

NY

PA

VT

RI

VAWV

OHINIL

NCTN

SC

ALMS

WI

NJ

GA

NM

TX

OK

NE

SD

NDMT

WY

COUT

ID

AZ

NV

WA

CA

OR

AR

LA

MO

IA

MNMACT

NH

KS

MI

FL

DEMD

KY

ME

NY

PA

VT

RI

VAWV

OHINIL

NCTN

SC

ALMS

WI

NJ

GA

NM

TX

OK

NE

SD

NDMT

WY

COUT

ID

AZ

NV

WA

CA

OR

AR

LA

MO

IA

MNMACT

NH

KS

Mexico

Key

Varco Pruden Plant

Butler Plant

BSL Steel Sales OfficesKoreteck

SteelscapeMetlSpanASCNorthStar BlueScope

HCI Steel

1H FY 2008

REVENUE:

A$661M

EBITDA:

A$98M

EMPLOYEES:

2,421 incl. North Star

INVESTED CAPITAL:

A$359M

NB: Revenue excludes BSL’s 50% interest in North Star BlueScope Steel.

Page 80

Indicative FY2008 Zinc and Aluminium

usage vs

FY2007

Note:(1

)

In future years BSL Asia’s usage will increase as new mid-stream projects ramp-up to full capacity(2

)

Av FY 2007 Zinc price was US$3,728 per tonne vs

av

1H FY 2008 price of US$2,889 per tonne, with current spot price of US$2,416 per tonne (12 Feb 2008).

Tonnes Zinc Aluminium

FY2008(E) FY2007 FY2008(E) FY2007

AUSTRALIA

Springhill 21,423 22,787 11,281 10,632

Western Port 22,261 21,800 11,284 10,900

Sub-total 43,684 44,587 22,565 21,532

NEW ZEALAND 7,300 6,800 3,700 3,500

ASIA 19,814 14,888 18,094 13,092

TOTAL 70,798 66,275 44,359 38,124

Page 81

0

20

40

60

80

100

120

Arce

lorM

ittal

Nipp

on S

teel

JFE

POSC

O

Tata

Cor

us

Baos

teel

US S

teel

Nuco

r

Thys

sen

Krup

p

Evra

z

Seve

rsta

l

Gerd

au

Wuh

an

Chin

a Ste

el

Maan

shan

Blue

Scop

e

CSN

SSAB

$0

$20

$40

$60

$80

$100

$120

Crude Steel Production (M tonnes) Revenue (US$bn)

Global steel industry consolidation continues

EU / Americas

EU / Asia

Asia

Australia, Asia, Americas

EU

Americas

US$ Billions

Millio

ns o

f ton

nes c

apac

ity

Note: CY07 estimates of revenue. Production based on CY06 IISI data. CSN’s production is shown at steady state as 2006 production was disrupted by outages (3.5mt)

Page 82(4) In addition, a Cogeneration feasibility study being undertaken over next 12 months and the capital cost of the project, will likely be in the range of A$700 – 1,000M.

Major approved capital projects and investments summary

PROJECTSAll in A$million

Total Est. Capex / Cost

Actual to 30/6/07

FY20081H Actual

FY20082H

FY2009 FY2010

Projects completed

Thailand –

Coating expansion 80 80 - - -

Vietnam –

Coating / Painting 136 136 - - -China

-

Coating and Painting Facility-

Guangzhou Butler / Lysaght27433

27433

--

--

--

India -

Butler / Lysaght

facilities (50% interest) 44 41 3 - - -AustraliaPort Kembla (PKSW) - HSM expansion

- Sinter Plant EmissionsWA Service Centre

10210021

10210021

---

---

---

Western Sydney Colorbond® 150 147 3 - - -

Projects to be completed

India -

Coating / Painting (50% interest) 135 5 2 33 60 35

Indonesia –

Coating / Painting 134 14 2 28 77 13

PKSW –

Blast Furnace No. 5 Reline –

Sinter plant upgrade 370134

10612

1215

2334

22666

37

INVESTMENTSSmorgon

Steel’s Distribution businessButler Manufacturing(3)

Lysaght

and water acquisitions

700277129

319(1)

277129

253(2)

--

---

---

---

Total capital spending(4) 2,819 1,796 290 118 429 58

Notes: (1) Cost of 19.98% holding in Smorgon

Steel (SSX). (2) Net cost to BlueScope on sale of SSX shares excluding tax payable on sale of SSX shares. Gross cost of $700M less pre-tax profit on SSX shares of $128M leaves $572M. (3) US$190M (A$226M) recovered following the sale of Vistawall

in June 2007.

Page 83

Calendar year earnings

A$ Millions CY2003 CY2004(2) CY2005 CY2006 CY2007(3)

Revenue 5,328 7,029 7,980 8,693 9,333

EBITDA(1) 857 1,501 1,411 1,052 1,130

EBIT(1)

-

reported 581 1,212 1,111 742 792-

operational - - 1,308 966 924

Net profit-

reported 436 859 792 413 414

-

operational - - 943 586 563EPS (¢) -

reported 56 116 110 59 56

(1)

Includes EBITDA & EBIT for North Star BlueScope Steel but not revenue(2)

Includes eight months of BlueScope Butler financial results(3)

Includes five months of Smorgon

Distribution financial results

Page 84

Internal business structure has been reorganised

to focus on our strategic priorities and execution

Noel Cornish Paul O’Keefe Mark Vassella Kathryn Fagg Bob MooreBrian Kruger

Aus/NZ Steel Manufacturing

Businesses

Australian Coated and Industrial

Markets

Australian Distribution and

Solutions

CFO (Charlie Elias)

Asia

Legal (Michael Barron)

ChinaCorporate Strategy

and Innovation;North America,

People and Organisational Performance (Ian Cummin)

Paul O’Malley

Managing Director and CEO

Oversees all manufacturing facilities

in Aus/NZ; NZS; responsible for driving

safety, process excellence and

meeting production schedule at lowest cost

Customer oriented business responsible for

all Australia sales, exports (other than

downstream), key account

management, supply chain, strategic pricing

and setting the production mix for

manufacturing

Oversees North American businesses

with particular emphasis on growth,

as well as leading corporate strategy and

innovation

Direct CEO report for China to provide top

management focus on turnaround effort

Combines responsibility for

Australian downstream businesses (Lysaght, Distribution, Service centres, Water and

Butler Buildings)

Responsible for leading ASEAN businesses

and Indian joint venture

Page 85

Marine freight continues to be one of the most volatile commodities in the world – expect further rate hikes this CY BUT BlueScope largely insulated

Marine freight market volatilityall time high in Dec 2007to some of the biggest one-day falls ever seen (in Jan)

o

The extent of the fall being due to –

An iron ore port closure in Brazil–

Flooding in Queensland halting coal exports–

Power crisis in China and South Africa restricting coal exportsthese are relatively short term and would expect a rebound

BUT BlueScope’s strategy is to manage this volatility through the negotiation of medium to long term contracts where possibleBaltic Dry Index showing marine freight market over the last 3 years

Bulk Dry Index

0

2,000

4,000

6,000

8,000

10,000

12,000

Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08


ASX Code: BSL

Documents

First Half FY2008 Results Presentation Period …...First Half FY2008 Results Presentation Period Ended 31 December 2007 Paul O’Malley, Managing Director and Chief Executive Officer