2004 Annual General Meeting2004 Annual General Meeting

Annual General MeetingGraham KraeheChairman19 October 2004

Annual General MeetingGraham KraeheChairman19 October 2004

Page 3

Board of DirectorsBoard of Directors

GRAHAM KRAEHEChairmanGRAHAM KRAEHEChairman

RON MCNEILLY Deputy ChairmanRON MCNEILLY Deputy Chairman

KIRBY ADAMSMD & CEOKIRBY ADAMSMD & CEO

DIANE GRADYNon-Executive Director

DIANE GRADYNon-Executive Director

KEVIN McCANNNon-Executive Director

KEVIN McCANNNon-Executive Director

PAUL RIZZO Non-Executive Director

PAUL RIZZO Non-Executive Director

TAN YAM PINNon-Executive Director

TAN YAM PINNon-Executive Director

Annual General MeetingGraham KraeheChairman19 October 2004

Annual General MeetingGraham KraeheChairman19 October 2004

Chairman’s AddressChairman’s Address

Page 6

BlueScope Steel has outperformed its peersBlueScope Steel has outperformed its peers

60

80

100

120

140

160

180

Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04

Asia-Pacific Iron & Steel Index

BSL Share Price

US Iron and Steel Index

Relative Share Price Performance: Jan 04 – Sep 04

Source: Bloomberg & Citigroup Smith Barney estimates

Page 7

BlueScope Steel has outperformed its peersBlueScope Steel has outperformed its peers

50

100

150

200

250

300

350

Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04

Relative Share Price Performance: July 02 – Sep 04

BSL Share Price

US Iron & Steel Index

Asia-Pacific Iron & Steel Index

Source: Bloomberg & Citigroup Smith Barney estimates

Page 8

Group Headlines FY2004Group Headlines FY2004

Continued to seize market opportunities and drive business improvements• Revenue $5.77 billion Record

• Despatches 6.94 million tonnes Record

• NPAT $584 million Up 29% Record

• EBITDA $1,105 million First time over $1.0 billion

• EBIT $818 million Up 34%

• EPS 77.8¢ Up 36%

• Return on Invested Capital 18.5% Growth continues

• Net Cash Flow $315 million Even after Butler & growth expenditure

• Debt Increased Up $425 million Reflects Butler acquisition and share buyback

• Gearing (net debt) 12.9% But for buyback and acquisition –would be zero

Page 9

The benefits of BlueScope Steel’s progress are far-reachingThe benefits of BlueScope Steel’s progress are far-reaching

Shareholders• Total dividend increased from 29¢

to 40¢ per share• Total Shareholder Return of 185%

since listing and 92% in FY2004

Employees• More than $1 billion paid in wages

and salaries• $30 million-Bonus employee shares• Cleaner and safer workplaces

Customers• Best ever delivery performance• New product offers• Successful Company name

change

Communities• $200 million paid in income tax• $2 million directly invested in

community programs• Improving environmental

management

Page 10

Safety –– Our goal remains zero harmSafety –– Our goal remains zero harm

Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate

35

29

1614

8

4.8 3.7 4 3.4 2.8 1.8 1.3

0

5

10

15

20

25

30

35

40

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

80

68

60

52.247.1

29.122.4 21.9

16.912.2 9.3 6.7

0

10

20

30

40

50

60

70

80

90

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004* Includes contractors from 1996

Injur

ies re

sultin

g in l

ost ti

me pe

r milli

on m

an-h

ours

worke

d

IISI Member Companies (2002) – 8.4Me

dicall

y tre

ated i

njurie

s per

milli

on m

an-h

ours

worke

d

* Includes contractors from 2003

But, we experienced a fatality on 29 June 2004

Page 11

Best total shareholder return in ASX 100Best total shareholder return in ASX 100

BlueScope Steel

-75%

-50%

-25%

0%

25%

50%

75%

100%

125%

150%

175%

200%

225%

250%

Total Shareholder Return (from 15/7/2002 to 30/9/2004)NB: Top 50 companies only shown

Source: ABN AMRO

Resolution 3Resolution 3

Page 13

Strong and improved financial performance across all segmentsStrong and improved financial performance across all segments

471

44

11984

565

59

197

100

-9

-100

0

100

200

300

400

500

600

Hot RolledProducts

New Zealand Steel Coated & BuildingProducts Australia

Coated & BuildingProducts Asia

Coated & BuildingProducts North

America

FY03 FY04

EBIT

A$ M

illion

s 69

71 North Star BlueScope Steel

• New business segment as at 1 May 2004

• 2 months results, including integration costs

Group EBIT $818m

Page 14

Page 15

Page 16

Page 17

Corporate GovernanceCorporate Governance

Current Trading and OutlookCurrent Trading and Outlook

Annual General MeetingGraham KraeheChairman19 October 2004

Annual General MeetingGraham KraeheChairman19 October 2004

Annual General MeetingKirby AdamsManaging Director & CEO19 October 2004

Annual General MeetingKirby AdamsManaging Director & CEO19 October 2004

Page 22

• (insert image from p.30 of Annual Report per ERD)

Page 23

Top 20 World - Class SteelmakersTop 20 World - Class Steelmakers

1. POSCO (South Korea)2. Severstal (Russia)3. Baosteel (China)4. Tata Steel (India)5. BlueScope Steel6. CST (Brazil)7. Gerdau (Brazil)8. China Steel (Taiwan)9. Nucor (USA) 10. CSN (Brazil)

1. POSCO (South Korea)2. Severstal (Russia)3. Baosteel (China)4. Tata Steel (India)5. BlueScope Steel6. CST (Brazil)7. Gerdau (Brazil)8. China Steel (Taiwan)9. Nucor (USA) 10. CSN (Brazil)

11. Anshan Steel (China)12. Nippon Steel (Japan)13. Sha-gang (China)14. SDI (USA)15. JFE (Japan)16. Dofasco (Canada)17. ISG (USA)18. LNM Group 19. Arcelor (E.U.) 20. U.S. Steel (USA)

11. Anshan Steel (China)12. Nippon Steel (Japan)13. Sha-gang (China)14. SDI (USA)15. JFE (Japan)16. Dofasco (Canada)17. ISG (USA)18. LNM Group 19. Arcelor (E.U.) 20. U.S. Steel (USA)

Source: World Steel Dynamics, 2004

Page 24

Return on net assets contourReturn on net assets contour

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 3.00

POSCO

DofascoJFENucor

TKSSmorgon

OneSteel

BlueScope Steel

NipponArcelor

Corus

10%

15%

SALES/NET ASSETS

EBIT/SALES

RONA20%

Ruukki

Performance measures are based on companies’ most recently available, publicly released, financial information for the 12 months ended June 2004. TKS, JFE & Nippon are 12 months ended March 2004. Posco, Arcelor, Corus, Nucor, Dofasco, US Steel, ISG and Ruukki are based on interim results. Net Operating Assets is defined as an average annual amount comprising short and long term assets, net of short and long term liabilities and excludes all tax and funding items. EBIT is Earnings before Interest and Tax.

Page 25

The changing expectations of our customersThe changing expectations of our customers

13

11

98

6.6 5.9 5.94.9

1997 1998 1999 2000 2001 2002 2003 2004

Average Customer Order Size(Tonnes/ Order)

Order Lead Times Summary(Percentage of Orders per Days Notice)

4035 33

2925

19 19 19

1997 1998 1999 2000 2001 2002 2003 2004

89

85

92

96

2001 2002 2003 2004

Delivery Performance(Percentage “On Time Delivery”)

Inventory Velocity (Days of Inventory)

There has been a major shift in Lead Times

Order sizes have reduced dramatically

Inventory velocity at optimum level

010203040506070

>70 70 - 42 35 - 14 7 <7

Days Notice

% o

f Ord

ers

1997 2004

*Data from Queensland Service Centre

Page 26

BLUESCOPE STEEL: WINNER OF 2004 TOYOTA PRESIDENT’S AWARD

Increasing intensity of international competitionIncreasing intensity of

international competition

Page 28

Steel prices high but volatility remainsSteel prices high but volatility remains

Spot Price Hot Rolled Coil (US Midwest)Jan 00 – July 04

0

100

200

300

400

500

600

700

800

900

Jan-0

0Apr-

00Ju

l-00

Oct-00

Jan-0

1Apr-

01Ju

l-01

Oct-01

Jan-0

2Apr-

02Ju

l-02

Oct-02

Jan-0

3Apr-

03Ju

l-03

Oct-03

Jan-0

4Apr-

04Ju

l-04

US$/t

onne

Page 29

WINNING IN OUR HOME MARKETS

How we are changingHow we are changing

Page 31

USA early 20th century steel millUSA early 20th century steel mill

• (insert steel mill pic.)

Page 32

• (insert image from p.36 of Annual Report per ERD)

TWEED RIVER ART GALLERY

Page 33

BlueScope SteelBlueScope Steel

• Product and market driven

• Solutions-oriented

• Multinational

• Technically oriented

Page 34

Our strategy – A downstream steel solutions companyOur strategy – A downstream steel solutions company

Vietnam

Australia & NZ Brownfields

Australia & NZ BrownfieldsChina

Vietnam

ThailandChina

HSM Expansion

Water

• Asia and Regional Growth

• Value-added branded products

• Asset productivity

• Disciplined capital management

• World-class low-cost operations

• Manufacturing excellence

• Supply chain velocity

• Cost reductions

• Vigorously defend existing valueSlab

Hot Rolled Coil, Plate

Cold Rolled

Painted

Roll-forming

Metallic Coated

PEB/SolutionsButler

Page 35

BUTLER® PRE-ENGINEERED BUILDING

Our people and cultureOur people and culture

Page 37

Employee Profile by countryEmployee Profile by country

30 June 2004

Australia 50%

New Zealand 3%

North America

23%

China 7%

SE Asia 11%Other 1%

Australia 75%

North America

0.1%China 2.2%

Other 3%

SE Asia 9.3%

New Zealand 10.4%

30 June 2001

Total 12,801 Total 16,806

Page 38

High performance organisation cultureHigh performance organisation culture

InnovationsInnovations

Page 40

“BLUE ZINCALUME” FRAMING PRODUCT ON TRIAL

Page 41

ILLAWARRA WASTE WATER TREATMENT SCHEME

Page 42

BlueScope WaterBlueScope Water

Page 43

SINTER MACHINE EMISSION REDUCTION PROJECT

Butler acquisition – a key growth eventButler acquisition – a key growth event

Page 45

Acquisition of Butler ManufacturingAcquisition of Butler Manufacturing

Pre-eminent global designer/supplier of pre-engineered buildings (PEBs)Number one positions in North America and ChinaWorldwide brand recognitionGreat people with excellent skillsAn attractive opportunity at the right time

Page 46

North American Buildings GroupNorth American Buildings Group

Warehouse RetailManufacturing

CommunityShowroomRecreation

Page 47

BlueScope Butler China OperationBlueScope Butler China Operation

BlueScopeBlueScope Butler Shanghai PlantButler Shanghai Plant BlueScopeBlueScope VistawallVistawall Fabrication PlantFabrication Plant

BlueScopeBlueScope Butler Butler TianjinTianjin PlantPlant

Page 48

BlueScope Steel Lysaght and Butler China FootprintBlueScope Steel Lysaght and Butler China Footprint

BlueScope Steel in China1 Metal Coating/Paint Line facility (under construction)5 Lysaght manufacturing facilities (incl. Taiwan)60 Lysaght / CSC sales offices2 Butler PEB manufacturing facilities24 Butler district offices / sales offices

Page 49

Asian Growth – Vietnam Coating & Painting PlantAsian Growth – Vietnam Coating & Painting Plant

Page 50

Asian Growth – Thailand 2nd Metal Coating LineAsian Growth – Thailand 2nd Metal Coating Line

Page 51

Asian Growth – China Coating & Painting PlantAsian Growth – China Coating & Painting Plant

ConclusionConclusion

Annual General MeetingKirby AdamsManaging Director & CEO19 October 2004

Annual General MeetingKirby AdamsManaging Director & CEO19 October 2004

Annual General MeetingAnnual General Meeting

Resolution 3Resolution 3