BlueScope Buildings ChinaAnalyst presentationTim Lefebvre

November 24 2006

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.

BlueScope Steel China – an integrated group of focused businesses

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 Buildings in China – A Shared History

1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola

1995 Lysaght set up 2 plants in Shanghai & Guangzhou and Butler built 1st plant in Shanghai

2000 Butler Shanghai phase II was completed and new plant Tianjin

2003 Lysaght built Langfang & Chengdu plants and Vistawall plant in Shanghai

2004 BlueScope Steel acquire Butler Manufacturing Co - BlueScope Buildings formed

2005 BlueScope Buildings Tianjin added phase II (Add Structural Line)

2006 Coating plant in Suzhou and new Buildings Guangzhou combined capability

2006 BlueScope Steel built insulated panel facility in Langfang

Completed over 3,300 projects in China

Total China asset base US$350m with more than 2,000 employees!

Our Unparalleled Strong “Local” Network

BlueScope Steel 1 Metal Coating & Painting facility7 Solutions manufacturing facilities

Over 70 sales offices

Chengdu• Buildings

Langfang Tianjin• Buildings (2)

Shanghai• Buildings (2)

Guangzhou • Buildings

Suzhou• Coating and

Painting Facility

Urumqi

Chongqing

Xian

Xiamen

Guangzhou

Shanghai

Tianjin

World Class Building Manufacturing Sites

BlueScope Butler China Manufacturing Facilities

Shanghai Plant Vistawall Shanghai

Tianjin Plant

BlueScope Lysaght China Manufacturing Facilities

Shanghai Plant Langfang Shanghai

Chengdu Plant

Our New Combined Facility in Guangzhou

Some Highlights Showing Safety is a Core Activity

Kangqiao 7 years since last LTI

Guangzhou 11 years since last LTI3 years since last MTI

Chengdu & Langfang No LTI since start up

Tianjin 2 years since last MTI

Single Source Service – A breakthrough in Chinese Construction

Design

Manufacturing

Project ManagementTransportation

On-Site Consultation

ConstructionServices

Local Support

Building Solution

Value Engineering

An Integrated Strategy – Derived Value from Internal Supply

PUBLIC BUILDINGS

POWER STATIONS

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

TRANSPORT

HIGH RISE

A Strong Position for PEB in China

Sales Ranking for Top 10

In the Metal Structure Industry (2005)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Butler B C D E F G H I J

Source Dun & Bradstreet

Our Channel to Market

BlueScopeBuildings

Steel

Building

GeneralContractor

BUTLERBuilder

Design

Institute

Export

The Pre-Engineering Buildings Process

Owner’s Concept

Design team develops fully engineered

solution

Customer Tour

Manufacturing

Final Contract Negotiation

Deliver a high quality, complete building solution

100% Customer Satisfaction

Detailed discussions to

finalise project design

BlueScope Butler Market Focus by Industrial Segment

End Usage Analysis by Industry (m2)(2001 thru Sept 2006 )

Pharmaceutical7%

Textile9%

Aviation1%

Supermarket12%

Chemical3%

Food3%

Furniture6%

Electronics17%

Logistics14%

Automotive16%

Hi-Tech11%

Solutions for a Wide Range of Industries

ManufacturingInfrastructure

Pharmaceutical Commercial & Retail

A Focussed Sales Force – Chinese Strategic and Multi National Accounts

Chery - WuhuChery - Wuhu SGM - PudongSGM - Pudong

Fuyao - FuqingFuyao - Fuqing Yanfeng Ford - ShanghaiYanfeng Ford - Shanghai

Major Clients – Key International Alliances

Major Clients – Key Local Alliances

Major Clients – Key Local Alliances

Many Multi-National Strategic Accounts

Export is an Opportunity

Butler China has exported over 40 projects with total area over 273,000 Sqmmaterials to Korea, Australia, Russia, India, Vietnam, Philippine, Syria, Saipan, Kazakhstan and Niger. In the near future, we will surely have business in Mauritius, Nigeria, Ghana, Ukraine and Brazil as well.

The Integrated Offer provides “peace of mind” for our customers

CUSTOMER DESIGN MANUFACTURE PROJECTMANAGEMENT

INSTALLATIONSUPPORT

Engineering is Our Strength

Certificate of ISO 9001 Quality Assurance System

Manufacturing Certificate by Shanghai Construction Committee

Design Certificate by China Ministry of Construction

Underwriters Laboratories Class -90 Certificate

Factory Mutual Certificate

Triple A Credit Enterprise

Strong engineering capability in our experienced people

Engineering Staff Professional Title

01020

3040

5060

7080

90100

Butler Shanghai 16 8 71 39

Butler Tianjin 6 9 20 24

Butler China 22 17 91 63

1st Class Registered Senior Engineer Engineer Assistant Engineer

Retention is a Key Factor

Retaining the right PeoplePay for performance cultureShare success – Bonuses, BlueScope Steel share award

23.0%

22.5%

14.5%

2.0%

62.0%

100.0%

162.0%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180%

Housing

Pensio

Medical

Un-employment

Benefit Total

Base Salary

Grand Total

Salary and Benefit Structure

Recruiting the right peopleEducation / experience as well as attitude, stability, commitment, and fitness with BlueScope Steel culture

0102030405060

% of Employees by Qualification

Master Bachelor DiplomaTechnical High School Primary School

A Capable Buildings Business

Our Buildings Options

PEMB Building Systems

PEB Manufacturing – Make-up of Products

Structural Frames Vs. Claddings Production

Claddings41%

Frames59%

% Plant Production

MR-2430%

Stylwall1%

BRII17%

Truss1%Components

18%

Purlin33%

Butler Ingredient Products

MR-24 Roof System

CMR-24 Roof System

BR-II Roof and Wall Panel Flat Stylwall Panel

NECTERE Sandwich Panel

Purlins Frames

Lysaght Broad Product Range

KLIP-LOK®®

TRIMDEK®®SEAMSEAM--LOKLOK®®

PANELRIB®®

FLEXFLEX--LOKLOK®® CUSTOM BLUE ORBCUSTOM BLUE ORB®® MINI ORBMINI ORB®®

MULTIMULTI--CLADCLAD®®

DECKINGDECKINGCUSTOM ORBCUSTOM ORB®® PurlinPurlin

New Products – Architectural Panels

The local sales force must act “like tigers”

1999 2000 2001 2002 2003 2004 2005 2006

Butler Quote Activities

Volume Num.

A Constant Focus on Cost Reduction

Main Elements of a Building by Cost

Primary35%

Secondary15%

Wall Panel10%

Roof Panel15%

BOI16%

Freight4%

Service2%

Engineering3%

BOI Buy Out Items

There are some key challenges which must be tackled

Challenge 3Increase use of steel in

construction

Challenge 1Profitably fill capacity

Challenge 2Margin improvement

Our Focus is• Sales force deployment• Sharpen product and Service offer• Focus on urbanisationgrowth areas• Optimise sales office network• Professional sales development

Our Focus is•The BUTLER brand•Strategic customer alliances• Enhance value offer• Grow Builder network

Our Focus is• Increase steel penetration in residential construction• Introduce new products to our range• Involvement in thermal Chinese codes• Increase structural flooring in high rise applications

BlueScope Buildings – Strength Going Forward

Very strong, consistent growth achieved to date in ChinaAn excellent network of operations and officesA robust suite of brands and premier market positionAn experienced local management team

Significant further growth opportunities remain :Ongoing economic growth;New products to enhance our offer;Inter-material replacement;Leverage BlueScope Steel solutions and network within Greater China and elsewhere

BlueScope Buildings China

BlueScope Buildings ChinaAnalyst presentationTim Lefebvre

November 2006