Investors’ Visit to ASEAN Sites – May 2015Pack 4: NS BlueScope Malaysia, Singapore and Brunei

May 2015

Pongsak Padungkarn, President – Malaysia, Singapore & BruneiNathan Antonucci, VP Commercial – Malaysia, Singapore & Brunei

BlueScope Steel Limited. ASX Code: BSL

For

per

sona

l use

onl

y

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 BLUESCOPE STEELLIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATEFINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFORMATION OR OPINIONS CONTAINED INTHIS PRESENTATION AND, SUBJECT ONLY TO ANY LEGAL OBLIGATION TO DO SO, BLUESCOPE STEELDOES NOT ACCEPT ANY OBLIGATION TO CORRECT OR UPDATE THEM. THIS PRESENTATION DOES NOTTAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULARNEEDS OF ANY PARTICULAR INVESTOR.

THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, WHICH CAN BE IDENTIFIEDBY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “MAY”, “WILL”, “SHOULD”, “EXPECT”,“INTEND”, “ANTICIPATE”, “ESTIMATE”, “CONTINUE”, “ASSUME” OR “FORECAST” OR THE NEGATIVE THEREOFOR COMPARABLE TERMINOLOGY. THESE FORWARD-LOOKING STATEMENTS INVOLVE KNOWN ANDUNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE OUR ACTUAL RESULTS,PERFORMANCE AND ACHIEVEMENTS, OR INDUSTRY RESULTS, TO BE MATERIALLY DIFFERENT FROM ANYFUTURE RESULTS, PERFORMANCES OR ACHIEVEMENTS, OR INDUSTRY RESULTS, EXPRESSED ORIMPLIED 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 FOR ANYINFORMATION PROVIDED IN THIS PRESENTATION, INCLUDING ANY FORWARD LOOKING INFORMATION,AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FOR ANY LOSS HOWSOEVERARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ON ANYTHING CONTAINED IN OR OMITTEDFROM IT OR OTHERWISE ARISING IN CONNECTION WITH THIS.

For

per

sona

l use

onl

y

INTRODUCTION

For

per

sona

l use

onl

y

4

We strive for zero harm

0.00.00.00.5

0.00.00.00.00.00.0

FY15 YTD

FY14FY13FY12FY11FY10FY09FY08FY07FY06

Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate

1.71.41.92.1

0.5

2.4

1.51.4

2.12.2

FY15 YTD

FY14FY13FY12FY11FY10FY09FY08FY07FY06

Safety• Most business units 10-20 years Lost Time Injury free

Environment• Full compliance with local law and regulations• All sites maintain Environment Management System

(ISO14000) certification

BlueScope group average 1H FY15: 0.5

BlueScope group average 1H FY15: 4.6

For

per

sona

l use

onl

y

5

NS BlueScope in Malaysia, Singapore and Brunei

• NS BlueScope Malaysia coating and painting facility in Kapar

• Six Lysaght sites: four in Malaysia, one in Singapore and one in Brunei

• First operation opened in 1965

• ~500 employees

NS BlueScope LysaghtMetallic coating and painting facility

For

per

sona

l use

onl

y

6

Channels to market

Coated Steel Manufacturer

Imports

Retail

End-User Segments

Channels InfluencersCustomer Segments

Large, medium and small

roll-formers

Pre-Engineered Buildings

Generalfabricators

Generalcontractors

EPC1

Arch

itect

s & D

esig

ners

Cons

ulta

nts &

Engi

neer

s

Cont

ract

ors

Lysaght

Roll F

orm

ers

NS BlueScope

Asso

ciatio

n

Home Owners

Key Decision Makers

Proj

ect O

wner

s

Distributors

EPC1

Contractors

Projects

Export

Manufacturing

1. Engineering, Procurement & Construction

For

per

sona

l use

onl

y

7

Macroeconomic environment (1/2)GDP growth is forecast to remain strong…

Source: IHS Global Insight, IMA Asia

4.75.65.2

7.4

-1.5

4.8

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

20182017201620152014201320122011201020092008

8.5

19.2

11.9

-2.7

2.4

-5.0

0.0

5.0

10.0

15.0

20.0

201420132012 20172016201520092008 2011

6.3

2010 2018

Real GFCF (investment) growth (% pa)

• While falling oil and gas prices are expected to impact growth, the outlook remains favourable

• GDP per capita remains second highest in ASEAN

• Investment growth is expected to remain strong, if lower than prior highs

• FDI – a key segment for NS BlueScope – is expected to drive a high share of growth

IMA Asia forecastActual IHS Global Insight forecast Average

Real GDP growth (% pa)

For

per

sona

l use

onl

y

8

Residential construction work done (% pa)

• Some moderation from recent strong activity, but favourable growth conditions remain

• Significant opportunity to grow share in this segment, independent of overall market growth

• Non-residential construction expected to remain stable at 4-6% CAGR

• Expecting ongoing fixed investment growth via major government projects (e.g. LRT project, SEDIA, SCORE)

Source: IHS Global Insight

19.526.4

14.7

-20.3

11.4

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

20182017201620152014201320122011201020092008

6.1

IHS Global Insight Dec 2013 forecastActual Average

13.517.6

-1.5

25.9

1.6

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

8.4

2017201620152014 2018201320122011201020092008

Note: Non-Residential construction refers to infrastructure, structures and I&C capacity work

Non-residential construction work done (% pa)

Macroeconomic environment (2/2)… with solid, if tempered, construction market growth

For

per

sona

l use

onl

y

9

Business vision and strategic focus

Key strategic areas of focus

Major strategic initiatives

Improve product mix

Improve penetration across the market

Increase/Maintain product profitability on Projects and Retail SME segment

Retail channel geographic expansion

Develop retail brand awareness

Develop loyal dealers and channels

Brand and loyalty programs

Increase new channels and dealers in new geographies

Further develop the ZACS family of products

Enhance market position

Geographical coverage in Borneo

Grow Supply & Install

Grow loyal customers

Convert Painted Galvanised

Convert tiles

Refresh and enhance products

Increased market engagement

Refresh the product range

Increase share of Supply & Install projects

Projects Retail Downstream

For

per

sona

l use

onl

y

10

Leadership team

Country PresidentPONGSAK PADUNGKARN

Vice PresidentManufacturing

MidstreamNGAN ZE HONG

AdministrationManager

ROWENA YONG

Vice PresidentSales

MidstreamGAN CHING

KOK

PresidentLysaght

MY/BruneiNG SAY TECK

PresidentLysaghtSG/SSC

TARUN SINHA

VicePresident

CommercialNATHAN

ANTONUCCI

Vice PresidentHealth, Safety& EnvironmentJAMES WONG

Vice PresidentHuman

ResourcesJ. KALAI

Vice PresidentMarketing &Ext. Affairs

Vice PresidentSupply Chain & Order Fulfillment

AUDREYLEOW

Role to be filled

For

per

sona

l use

onl

y

NS BLUESCOPE MALAYSIA

For

per

sona

l use

onl

y

12

NS BlueScope Malaysia

• NS BlueScope Malaysia is located in Kapar

– Metal coating line, continuous paint line and new in-Line painting

• Began operations in 1996

• Capacities:– Metal coating line capacity of

~150kt pa– Continuous paint line ~75kt– New in-line painting ~30kt

• 240 employees

For

per

sona

l use

onl

y

13

End user segments

ExportManufacturing

RetailProjects

For

per

sona

l use

onl

y

14

Key product applications

Walling

Rainwater goodsLouvres

Framing and truss

Ceiling and partition

Roofing

For

per

sona

l use

onl

y

15

Leading brands

Painted brands Metallic Coated brandsEnd user segment

Projects

Retail

ManufacturingFor

per

sona

l use

onl

y

16

PrimaMajuTM

PrimaMajuTM is an economical painted alternative for the industrial and commercial market and consists of a substrate of AZ100 (100g/m2) coating with a finish coat (17μm) and backing coat (5μm)

MUARA RIMBA TANAMERA CENDANA KEKABU AWANA

For

per

sona

l use

onl

y

17

Clean Colorbond® and PrimaMaju™ versus Painted Galvanised

Painted Galvanised

Application Developed for exterior building profiles in applications requiring high paint durability, excellent corrosion resistance and superior dirt resistance performance

Developed for economical exterior building profiles in applications requiring corrosion resistance and paint performance compared to Painted Galvanised

Generic prepainted steel for roofing and walling profiles with lower corrosion resistance and paint performance

Substrate- type- coating class- coating thickness

ZINCALUME® (55% Al-Zn)AZ150 (150g/m2\)~0.050 mm (Both surfaces)

55% Al-ZnAZ100 (100g/m2\)~0.030 mm (Both surfaces)

Zinc CoatedZ180 (180g/m2\) or lower~0.030 mm (Both surface)

Paint Custom formulated super polyester with high quality pigment with Thermatech® technology and clean properties to resist staining and discolouration

Custom formulated polyester with organic / inorganic pigment to suit high UV / temperature environment

Generic resin system – minimum color performance against color fading and chalking

WarrantyPerforation by corrosionPaint peel and flakeColor fadingDirt staining

>1km from marine25 years15 years10 years5 years

>1km from marine15 years10 years5 years

N/A

>1km from marine????

For

per

sona

l use

onl

y

18

Expanding painted capacity (1/2)

• NS BlueScope Malaysia is currently commissioning its newly installed in-line painting (ILP) capacity

– An extension to the metal coating line that allows continuous production of painted product

– Adds ~30kt of painting capacity

• Designed to support retail volume growth and overall business profitability

– ILP produces retail painted product, freeing capacity on the continuous paint line

– Potential for higher painted mix– Potential for cost-down on painted product

• New ILP technology

• Commercial product expected before end FY2015

For

per

sona

l use

onl

y

19

Expanding painted capacity (2/2)

Level 1 and Paint Coater Level 2 and Resin Coater

Below Induction Oven Zone 1, 2 and 3 and ducting

For

per

sona

l use

onl

y

LYSAGHT

For

per

sona

l use

onl

y

21

Lysaght in Malaysia, Singapore and Brunei

• Six Lysaght sites: four in Malaysia, one in Singapore and one in Brunei

• First operation opened in 1965 – 50 years of history

• 270 employees

NS BlueScope Lysaght Malaysia

NS BlueScope Lysaght Singapore

NS BlueScope Lysaght Sarawak

NS BlueScope Lysaght Brunei

NS BlueScope Lysaght Sabah

For

per

sona

l use

onl

y

22

Products

LYSAGHT® STANDING SEAM SYSTEM

LYSAGHT KLIP-LOK®OPTIMATM

LYSAGHT® TRIMDEK® OPTIMA™

LYSAGHT SPANDEK® OPTIMA™

LYSAGHT® CRIMP CURVED TRIMDEK® OPTIMATM

LYSAGHT® SMARTRUSS SYSTEM LYSAGHT® BONDEK II

For

per

sona

l use

onl

y

BUSINESS PERFORMANCE

For

per

sona

l use

onl

y

24

Total sales volume

• Volumes have remained robust

– Continuous paint line capacity has been a limiting factor

– In-line painting to address this capacity constraint

• Some moderation in sales volume at Lysaght but trend has begun to reverse

156.6152.2159.1168.6167.9

FY2014FY2010 FY2013FY2011 FY2012

Total sales volume (kt)

For

per

sona

l use

onl

y

25

Underlying EBIT

• Consistent EBIT performance and favourable trend, despite being capacity constrained

• Growth initiatives– In-line painting– New products and product

mix

90.186.287.591.183.5

FY2014FY2010 FY2013FY2011 FY2012

Underlying EBIT (MYR M)

For

per

sona

l use

onl

y

SUMMARY

For

per

sona

l use

onl

y

27

Summary

• Strong safety record

• Comprehensive and long-established presence in Malaysia, Singapore and Brunei

• Leading brands and products

• Expanding painted capacity to support retail volume growth and profitability

• Strong and consistent business performance

For

per

sona

l use

onl

y

Investors’ Visit to ASEAN Sites – May 2015Pack 4: NS BlueScope Malaysia, Singapore and Brunei

May 2015

Pongsak Padungkarn, President – Malaysia, Singapore & BruneiNathan Antonucci, VP Commercial – Malaysia, Singapore & Brunei

BlueScope Steel Limited. ASX Code: BSL

For

per

sona

l use

onl

y