Investor PresentationBlueScope Steel China BusinessPaul ZuckermanNovember 22, 2006

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Welcome to BlueScope Steel China

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BlueScope Steel has over 100 years experience in China

We have a proud history of successfully doing business in China:

• 1891 1st BHP sale to China

• 1915 1st BHP Steel sale to China

• 1979 Lysaght roofing imports

• 1990 Lysaght manufacturing in Hong Kong

• 1991 Guangzhou Lysaght Sales Office

• 1992 Shanghai Lysaght Sales Office

• 1994 Lysaght Shanghai & Guangzhoufactories & Butler Shanghai factory

• 1999 Coated Steel China established

• 2002 Butler Tianjin & Vistawall Shanghai

• 2003 Lysaght Langfang & Chengdufactories and sales office expansions

• 2004 Commenced Suzhou Project, Butler acq’n & new Lysaght solutions

• 2006 Suzhou Coating Facility, Buildings Guangzhou and Beijing Insulated Panel Line

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China’s strong economy has been well documented

EconomyReal GDP growth is forecast to slow gradually, but will remain strongFDI exceeds US$50 billion per annumTariff regime- 5% on cold roll steel imports- 8% on metallic coated steel imports- 4% on painted steel importsCurrently negotiating an FTA with Australia

Population1.5% per annum growth rate Urbanization continuing at a rate of 17 million people per annum

PoliticalGovernment policy will reduce investment in overheated sectors and stimulate domestic consumption levelsPotential environmental issues and economic impact from increasing pollution levelsAnticipate continued upward pressure on value of RMB

Real GDP Growth and Inflation - % chg

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1996-9

7

1998-9

9

2000-0

1

2002-0

3

2004-0

5

2006-0

7

2008-0

9

2010-1

1

2012-1

3

GDP GrowthInflation

Gross Fixed Investment and Foreign Direct Investment (US$ bn)

0

10

20

30

40

50

60

70

2001 2002 2003 2004 20050

200

400

600

800

1000

1200

1400

GFI (RHS)

Inward FDI (LHS)

Source: Global Insight, EIU

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Population, Income and Urbanisation growth will drive construction

CONSTRUCTION AND MACHINERY ACCOUNT FOR 2/3 OF DEMAND GROWTH BY 2015

314

2015

637

323

2005

32%

Machinery

8%

Consumerdurables

16%

Automobile

10%

Others

Construction

32%

Ship building& Containers

2%

Finished steel demand, million tons

* Excludes ship building and containerSource: McKinsey China steel demand model

Construction Investment - Contant US$Billion

0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006p

ResidentialNon-ResidentialCivil Engineering

CONSTRUCTION INVESTMENT

Source: Global Insight

Construction has been growing strongly as the demand for new housing and basic infrastructure soars.

Predominately coastal at present But will rapidly expand to China’s centre

URBANISATION

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• China metallic coated capacity estimated at 20 million tpy• China 55% Al/Zn coated capacity about 1.5 million tpy (dual pot)• Imports of 55% Al/Zn have dropped to almost zero.

• China painted coil market capacity estimated at 12 million tpy• Premium building & construction painted capacity about 600k tpy• BlueScope Steel has strong premium brands in a commodity market

A large coated market that is moving into high quality products

China 55% Al/Zn Capacity (kt)Bao Steel

200

Union Steel250

BlueScope Steel250Yieh Phui

300

Others500

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Our Focus: derive maximum value from the growing China steel construction industry. The market will see improved building quality, thermal efficiency and steel consumption over the next 20 years.

BlueScope Steel China

CoatedInvested Capital A$281m

BuildingsInvested Capital A$255m

BlueScope Steel Suzhou Buildings North Buildings Central

Buildings South/West Lysaght Residential

Panels Vistawall

BlueScope Steel China

Coated Buildings

BlueScope Steel Suzhou Buildings North Buildings Central

Buildings South/West Lysaght Residential

Panels Vistawall

BlueScope Steel China – an integrated group of focused businesses

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Excellent coverage across China to service local markets

55 Sales offices (60 BSB & 10 CS & Taiwan)

Suzhou Coil Coating Facility

Urumuqi

Chongqing

Xian

Guangzhou

Taiwan

Tianjin

BlueScope Steel China1 Metal Coating & Painting facility5 Lysaght Products Mfg Plants 3 Butler Products Mfg plants15 District Offices

Beijing

Shenyang

Qingdao

Hangzhou

Suzhou

Wuhan

Changsha

Hongkong

Chengdu

Shanghai

Harbin

Xiamen

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Local leaders driving the business and working safely

China Extended Leadership Team

• China safety performance is amongst BlueScope Steel’s best.

• Over 1800 employees, 25% female and over 80% with post secondary education (50+% with Bachelor degree).

• Actively participate in local educational, charity and sports function.

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MTIFR

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0.5

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2.5

2004

2005

2006 Ju

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Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar Ap

r

May Jun

Historical MTIFR MTIFR 12MMA TargetLTIFR

0

0.1

0.2

0.3

2004

2005

2006 Ju

l

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Historical LTIFR LTIFR 12MMA Target

Our safety program is important for our people and our customers

Lost Time Injuries Medical Treatment Injuries

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Local building practices are not always up to our standard

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We are a “local” supplier of high quality coated steel coil

250ktpa Coating line, 150ktpa Paint line100% owned by BlueScope Steel

BlueScope Steel’s largest single investment in Asia, A$280mAustralia’s largest investment in China

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Our coil products deliver value into a wide range of premium quality building solutions.

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“High value branded steel solutions for the building and construction industry”

We offer tailored solutions using a targeted approach to the market

Butler – Pre Engineered Metal Buildings

Public Buildings

Industrial

Residential

Transportation

Power StationsHigh Rise

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Our regional approach will provide future growth

FY04 FY06 Future

North 25% 35%

50%

15%

35%

Central 65% 40%

South/West 10% 25%

Indicative revenue by geography

FY04 includes full year Butler results

LYSAGHT SHANGHAI – est. 1995

BUTLER SHANGHAI – est. 1995

BUTLER TIANJIN – est. 2002 LYSAGHT LANGFANG – est. 2003

LYSAGHT CHENGDU – est. 2003

BUILDINGS GUANGZHOU – est. 2006

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High Rise Decking Projects – Building Shanghai’s Skyline

We provide engineered structural flooring solutions to Asia’s landmark high rise buildings

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The 2008 Olympics will be a Building Showcase

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Delphi - Shanghai

SeJung HQ - Korea

FuYao Glass - Fuzhou

VISTAWALL (glass curtain wall) Projects – modern design and function

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In the PEB segment, more local customers are buying style & quality

LocalStrategicMultinational2002 80% 10% 10%

2006 35% 30% 35%

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China – Key influences for a “start up” business

CoatedInput Side

CRC sourcing, pricingRamp-up of coating lineCost of coating metals

Sales SideDomestic pricingCommercial ramp-up

BuildingsInput Side

Steel price volatilityGuangzhou buildings start-upIntegrated ERP system

Sales SideDomestic pricingCustomer project delaysFilling increased capacity

Key factors influencing ongoing profitability CCTV Tower - BeijingCCTV Tower - Beijing

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FY07 Major Business Initiatives

BlueScope Coated Steel ChinaIncrease steel penetration in construction – IISI, China Steel Structure AssociationCoated Market Study – geographic and end user demand profileFacility ramp up – capability increase, cost decrease, unique capabilityBuild the Brand – use market technical seminars to expand use of Clean Colorbond®

and Zincalume® Steels

BlueScope BuildingsExpand product offer with new Insulated Panel offer and Residential profilesFurther align sales focus to market end user segments – increase market shareContinue to grow sales by region (far North & South)Export sales to be 15% of revenue

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China’s economy will continue to support construction growth and our recent investments will position us to grow.

Massive urbanisation, population and income growth will underpin steel demand for the next 20 years.

The business has come off FY2005 highs due to market conditions, “one offs” and large investment for the future but started FY2007 in good order

The Suzhou plant began full scale operations in October 2006.

BlueScope Buildings serves a wide range of building segments and is the market leader in modern/complex design and engineering, building quality, project management and thermal efficiency. This is the future of construction in China.

BlueScope Buildings has a market leading position although we recognise that keen competition is just behind us. We continue to innovate.

Once our projects are ramped up, the Building and Coating businesses will be well placed to grow profitably.

Summary – BlueScope Steel China

Investor PresentationBlueScope Steel China BusinessPaul Zuckerman & George GloverNovember 2006