FY2006 Results Presentation Period Ended 30 June 2006Kirby Adams, Managing Director and Chief Executive OfficerPaul O’Malley, Chief Financial Officer Business Presidents21 August 2006

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

IntroductionIntroduction

Page 4

Today’s agenda

Overview FY2006 - Kirby Adams, Managing Director & CEO

Reporting Segment Results- New Zealand Steel & Pacific - Noel Cornish, President Australian and

New Zealand Industrial Markets - Hot Rolled Products Australia - Coated & Building Products Australia - Brian Kruger, President Australian

Manufacturing Markets- Hot Rolled Products North America- Coated & Building Products North America - Coated & Building Products Asia - Kathryn Fagg, President Asian Building &

Manufacturing MarketsSteel Industry and Strategy - Kirby Adams

Financial Results - Paul O’Malley, Chief Financial Officer

Q&A’s

- Lance Hockridge, President North America

Page 5

FY2006FY2006HeadlinesHeadlines

Page 6

Zero harm is our goal for our team and communities

8.0

4.83.4 4.1 3.4 2.8 1.8 1.5 0.8 0.8

1416

29

35

0

5

10

15

20

25

30

35

40

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Lost

time i

njurie

s per

milli

on m

an-h

ours

worke

d

Includes Contractor performance from 1996Includes Butler performance from May 2004

Medically Treated Injury Frequency RateLost Time Injury Frequency Rate

52.247.1

29.122.4 21.9

12.2 9.3 9.3 6.4

17

8.2

60

68

80

0

10

20

30

40

50

60

70

80

90

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

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

Reported performance for IISI member companies

18,000 Employees, 91 manufacturing sites, 17 countries

Page 7

Continuing to reward our shareholders as we grow

Share Buybacks – Public listing to 30 June 2006Purchased and cancelled 116m shares− on market – 90m shares− off market – 26m shares

Shares on issue 699 millionDividend reinvestment scheme

Effective from and including final FY2006 ordinary dividend

Dividends – All fully franked (ordinary / special)

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

Share buybacks $ 707m 30%Dividends paid $ 1,109mFinal dividend (to be paid 24 Oct 06) $ 168m

$ 1,984m 84%

$2.67 share or 84% payout ratio (NPAT)

1824

710

20

920

1218

2413

05

101520253035404550

FY2003-1H FY2003-2H FY2004-1H FY2004-2H FY2005-1H FY2005-2H FY2006-1H FY2006-2H

Interim Final Special

42 / 20¢

30 / 10¢

22 / 7¢ 44 / 0¢

54%

Cent

s Per

Sha

re

Page 8

Group financial headlines FY2006

Revenue A$8,031 million Up 1%External despatches 7.5 million metric tonnes Up 5%EBITDA A$850 million Down 49%EBIT A$556 million Down 59%NPAT A$338 million Down 66%EPS

Reported 48¢ Down from134¢Before June 06 one-off restructuring 67¢ Down from134¢Underlying operational EPS 80¢ Down from 154¢

After tax Return on Invested Capital 8.5% Down from 26% After tax Return on Equity 10.4% Down from 31% Net operating Cashflow

before capex $803 million Down 35% after capex / investments $10 million Down 98%

Dividendfinal ordinary 24¢ per share Constantfull year 44¢ per share Up 5%(fully franked)

Gearing (net debt) 38% 33% (Dec 05) – including SOR

Page 9

FY2006 EPS – meeting guidance

Guidance Actual

June Market Guidance (One Off costs) (2) (15 – 20) cps (19)

June Market Guidance FY2006 reported EPS 45 – 52 cps 48

February 2006 Market Guidance 65 – 75 cps 67June 2006 Market Guidance (update) – Lower end of range (1) 65 – 67 cps 67

(1) Major changes between February and June guidance:Higher zinc and aluminium costs Lower domestic Australian volumes/marketLower tin mill volumes and pricesTaiwan lossesFavourable North American earnings and Q4 Australian domestic/export prices

(2) One-off restructuring costs:Packaging products asset impairment write offTin mill closure costsOther internal restructuring (Chullora, Taiwan closure, employee redundancies)

Page 10

Dramatic changes to geographic product destination - volumes up 6% with North America the largest market destination

Diversified Global Sales Volumes (tonnes)

New Zealand / Pacific4%

FY2005

Europe / Africa4%

Australia43%

Asia10%

Asia17%

North America -NSBSS + C&BPNA

(15%)Americas

7%

7.159 mt

Exports28%

New Zealand / Pacific4%

Major Changes FY2005 to FY2006

FY2006

Australia32%

Asia9%

Asia14%

North America -NSBSS + C&BPNA

15%

Americas20%

Europe / Africa6%

Exports40%

7.593mtAdditional 1mt of product exported in FY2006:

Additional slab sales to USA due to Western Port Fire in 1HAdditional HRC sales to USA due to softer domestic pipe and tube market resulting from higher importsAdditional export sales from Coated Australia due to imports and softer Australian market conditions.

Page 11

Australian despatches decline on weak manufacturing / strong A$

Australian sales tonnes lower across all segments in FY2006 to varying degree.Western Port fire affected year.In sales volume terms:

Dwelling (down 2%)−Housing slower in NSW & Vic−BSL sales tonnes down

marginally on 2005 buto Colorbond® sales strongo residential framing growth

exceeding expectationsNon-dwelling (down 16%)−Steel demand remains strong−BSL sales tonnes decline on

galvanised importsManufacturing (down 25%)− Industry closures / off shoring− Imports of tinned food by

grocers

3.0

2.0

1.0

FY2005 FY2006

Dwelling 18%(0.534)

Manufacturing 16%

Packaging 9%

Agriculture & Mining 11%

Auto & Transport 11%

Engineering 12%

Packaging 6%

Auto & Transport 11%

Agriculture & Mining 12% Manufacturing 15%

Engineering 12% Dwelling 22%(0.523)

Non-dwelling 22%(0.652)

Non-dwelling 23%(0.546)

Construction

52%

57%

2.965 mt Despatches 2.375mt

Sales Tonnes

0

mt

Page 12

Global group revenue sales mix – downstream quadruples in size

+300%

+12%

+29%

+52%

Downstream

Midstream

Upstream

A$589M

A$3,026M

A$3,346M

FY2003

(A$1,689M)

A$5,272M

(A$2,057M)

A$8,013M

A$2,366M

A$3,383M

A$4,321M

FY2006

Less internal / otherTotal revenue

Page 13

New reporting business segments

Corporate / Group

Hot Rolled Products

Australia

Lowest quartile producerLeading supplier of flat steel in AustraliaGlobal scale

o Port Kembla Steelworks

New Zealand & Pacific Steel

Products

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

o Pacific Islandso Glenbrook, NZ

Pre-eminent global designer / supplier Pre-engineered buildingsNo 2 position in North America and no. 1 in China

o Butler buildingso Vistawall

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)

o Delta, Ohio

Coated & Building

Products Asia

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

o Indonesian, Malaysian, Thailand and Vietnamese operations

o Lysaght Asiao China, including Butlero India – Tata

BlueScope JV

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

o Western Porto Springhillo Lysaght Australiao Service Centres

Coated & Building Products Australia

Page 14

EBIT variance FY2005 to FY2006 by reporting business segment

0

200

400

600

800

1000

1200

1400

1600

FY 2005 Hot RolledProductsAustralia

Coated &BuildingProductsAustralia

New Zealand &Pacif ic Steel

Products

Coated &Building

Products Asia

Hot RolledProducts North

America

Coated &Building

Products NorthAmerica

Corporate &Group

FY 2006

1,358

(693) (15)(84)

(84) (11) 45 40

556

From (FY2005) $1,149M $(183M) $189M $83M $199M $(18M) $(61M)

To (FY2006) $456M $(198M) $105M $(1M) $188M $27M $(21M)

Issues • Iron Ore +Coal costs

• Steel pricesdown

• WP fire• Zn & AL• Tin mill

performance

• Reliability• Production• NZ market

• Stocks• Growth• Taiwan

• Scrap spread• Production

record

• Restructured• Jackson fixed• Margin

growth

• Lower profit in inventory

EBIT movements

EBIT

A$ M

illion

s Net raw materials (286)

Page 15

Reporting SegmentReporting SegmentPerformancePerformance

Page 16

New Zealand and Pacific Steel Products performance

FY2006 vs. FY2005Sales revenue down 5% to A$709mEBIT down 44% to A$105m – second best year everFY2006 return on net assets (pre-tax) 32%

FY2006-2H vs. FY2006-1H− Higher repairs and maintenance

in steelmaking− Higher zinc and aluminium

costs

FY2006 vs. FY2005− Softer NZ residential market− Lower steel prices and volumes in export markets− Higher electricity costs due to drought− Lower vanadium sales prices− Production issues− Higher zinc and aluminium costs

0

20

40

60

80

100

120

140

160

180

200

FY June 03 FY June 04 FY June 05 Prices Volume Conversion &Oth Costs

Raw MaterialCosts

Other FY June 06

($28m)

$105m$3m($12m)

($30m)

($17m)$62m

$49m

EBIT

A$ M

illion

s

$189m

Page 17

New Zealand and Pacific Steel Products – markets and business improvement initiatives

MarketsExternal sales tonnes (domestic vs. export)

Domestic ExportFY2005 51% 49%FY2006 46% 54%

External sales (tonnes) by destination (indicative)

Business improvement initiativesImprove cost and productivity through further debottlenecking of the steelmaking and coating plantsGrow domestic sales and market share of coated products and pipe & tubeImprove margins through lowering overhead costsDevelop new revenue streams from the ironsand resource

FY2006

New Zealand 46%

Australia 13%

Other 11%North America25%

Japan 5%

Page 18

Hot Rolled Products Australia (PKSW) – higher raw material costs and lower prices

0

200

400

600

800

1000

1200

1400

FY June 03 FY June 04 FY June 05 RawMaterialCosts

ExportPrices

(Slab, HRC)

DomesticPrices(HRC,Plate)

Volume Mix Conversion& Oth Costs

Other FY2006 PreOne-offs

One-offs FY June 06

(446) (25)(60)

(286)

(30)

1,149

45648695095488389

EBIT

A$ M

illion

s

FY2006 vs. FY2005 Sales revenue down 7% to A$3,472mEBIT down 60% to A$456mFY2006 return on net assets (pre-tax) 24%

FY2006-2H vs. FY2006-1H- Lower slab, HRC and plate prices- Higher iron ore costs- Redundancy provisions- Margin squeeze

FY2006 vs. FY2005- Lower steel prices- Higher coal and iron ore prices- Unfavourable sales mix- Lower domestic pipe and tube sales- Annual production records, incl. 5.283m slab- Successful cost reduction programme

Page 19

Hot Rolled Products Australia – markets and business improvement initiatives

ProductsSlab - Global demand and prices stronger in Q4HRC - Tight global market and stronger prices in Q4Plate - Domestic demand stronger, but domestic

sales down due to:- offshore fabrication- lower priced imports - project deferral

Business improvement initiativesNo5 Blast Furnace Reline – Work continues in FY2007 to prepare for the planned reline late CY2007. Spent $56M to 30/06/06Restructuring program – Significant cost savings will be realised following implementation of the recent announcements in staff and management positions.Sinter Plant Upgrade – Feasibility work is well advanced to expand capacity of the sinter plant. Additional high grade sinter will reduce the cost of raw material feed.Supply Chain Velocity – Work has commenced on initiatives to further lower working capital.Continued conversion cost focus – Targeted programs to further reduce cost base.

2003 2004 2005 2006 2007

S&A Conversion Costs Despatch & Freight Raw Materials

Page 20

Improved disclosure – new Slab and HRC price benchmarks

Previously recommended the Japan to Korea HRC price as being a reasonable public benchmark for BlueScope’s domestic and Asian HRC sales – still valid and

Continue to recommend the following better benchmarks

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

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

US$

/mt

SBB HRC East Asia Import CFR

Source: Steel Business Briefing

Page 21

Port Kembla Steelworks despatches – stronger production –Australian external demand lower

External Product Sales Mix

Slab 34% 51% 54% 42%HRC 48% 36% 35% 45%Plate/Other 18% 13% 11% 13%

0200400600800

1000120014001600180020002200240026002800

FY05-1H FY05-2H FY06-1H FY06-2HInternal Domestic Exports *

(kto

nnes

)2,7232,5792,589

2,332

54% 48% 43% 45%

23% 20%16% 15%

40%41%32%23%

* Including BlueScope Steel Asia feed

Page 22

Coated & Building Coated & Building Products AustraliaProducts Australia

Page 23

Coated and Building Products Australia (excluding Packaging Products) – another difficult year

-150

-100

-50

0

50

100

150

200

250

FY June 03 FY June 04 FY June 05 ExportPrices

DomesticPrices

Mix Conversion& Oth Costs

RawMaterials -

Zinc &Aluminium

RawMaterials -

Steel / Other

Other FY2006 PreOne-offs

One-offs FY June 06

156

238

2

(89)

102

(35)(18)

(67)

104 16 15

(18) (3)

EBIT

A$ M

illion

s

FY2006 2H vs. FY2006-1H (EBIT + $19M to $8M)− Lower steel input costs− Significantly improved volumes and conversion

costs− Partly offset by:

− higher volumes into export markets− lower selling prices− significantly higher zinc and aluminium

costs

FY2006 vs. FY2005− Lower export prices and steel input costs reflecting lower average

global steel prices− Total despatch volumes consistent with last year, but shift to export

(record despatches in Q4)− Significant increase in zinc and aluminium costs (mainly H2)− Conversion costs – mainly Western Port HSM fire− Improved domestic pricing in building market− One-offs reflect restructuring, including exiting Solid Block Painting

Page 24

Coated and Building Products Australia – Packaging Products Closure of tin mill announced 29 June

EBIT

A$ M

illion

s

-250

-200

-150

-100

-50

0FY June 03 FY June 04 FY June 05 Prices Volume

Conversion &Oth Costs Other

FY2006 PreOne-offs One-offs FY June 06

(41) (45)

(185)

3124

(31)(11) (172)

(23) (195)

FY2006 vs. FY2005− Significant impairment and restructuring in

both years - $120M in 2006, $97M in 2005− Improved domestic pricing, but lower

domestic volumes and No. 2 Electrolytic Tinning Line closure affect conversion costs

Closure− Decision on 29 June to exit tinplating business− Timing to follow discussions with customers− Approx 250 positions redundant− Pickle line and cold mill to continue

Page 25

Coated and Building Products Australia – markets

MarketsBuilding market− Branded product price increases implemented,

further increases in September− Record sales revenue− Dwelling soft, mainly NSW and Victoria− TrueCore® (steel framing) sales exceeding expectations

(30% on 2005)− Non-dwelling remains strong

Manufacturing and distribution markets− Lost market share in commodity products− Decline in domestic manufacturers− Responded with new market offers, including faster response times

o improving share in FY2006-2H, continuing in Q1 2007Packaging market− Reviewed earlier – exit during FY2007

Page 26

Coated and Building Products Australia – key initiatives to drive business improvement

Business improvement initiativesContinue recovery in domestic market share - responsive offers, reliable supply and differentiated productsContinue focus on inter-material share growthContinue improvement in utilisation of critical production units, build on numerous records in 2006Implement overhead cost reduction programInformation systems changes driving supply chain improvements and improved inventory turnoverImprove margin management processes to cope with increasing volatility, including zinc hedging programSuccessful start-up of Western Sydney paintline in H2

Page 27

Hot Rolled Products Hot Rolled Products North AmericaNorth America

Page 28

North America – stronger market – stronger performance

Steel industryStrong demandSteel industry rationalisation providing improved production discipline in marketplaceFavourable price environment

BlueScope’s activitiesNorth Star – 50% owned JV, mini-mill steel productionButler Buildings – Engineered building solutionsVistawall – Architectural aluminium building productsSales offices – representing BlueScope imports into North & South America, the Caribbean and EuropeCastrip – 47.5% owned JV, commercialisation of steel casting technology

North Star BlueScope (2M short tons HRC production via EAF)Maintained # 1 position on Jacobson customer survey in North America for third year in a row

Butler (downstream)Acquisition – paid US$251m in 2004 for US$800m in sales vs. NCI / RC deal (US$370m for US$430m in sales)Buildings – delivered on the turnaround with best financial results since 2001.Vistawall – record backlog going into FY2007.

Sales officesContinue to maintain / develop core customer relationships for slab, HRC and plate sales. Outstanding performance in FY2006 with increased exports from Australia.

Page 29

Hot Rolled Products North America – another excellent year

Performance (North Star BlueScope)FY2006 vs. FY2005− Lower scrap / HRC spread− Record annual production and

despatches of 1.9mt (100%)− Paid dividends to BSL of A$168m

in FY2006

FY2006-2H vs. FY2006-1H− Spread improvement

FY2006 vs. FY2005 (North Star BlueScope 50% only)Sales revenue down 7% to A$712mEBIT down 13% to A$169mFY2006 return on net assets (pre-tax) 63%

0

20

40

60

80

100

120

140

160

180

200

220

240

FY June 03 FY June 04 FY June 05 Trading offices North Star FY June 06

199

(25)188

14

7883EBIT

A$ M

illion

s

New reporting segment comprising:North Star BlueScope Steel (50% interest)Castrip LLC and North American and European sales offices

FY2006 vs FY2005 EBIT variance analysis

Page 30

North Star BlueScope Steel – EAF operational excellence

Natural Gas Consumption (MMBTU per ton, FY)

2002 2003 2004 2005 2006

Electricity Consumption(KWH per ton, FY)

2002 2003 2004 2005 2006

Tap to Tap Time (minutes)

2001 2002 2003 2004 2005 2006

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

2001 2002 2003 2004 2005 2006

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

Annual Steel Prod 1.5 1.6 1.6 1.7 1.8 1.9(mtonnes) (100%)

Page 31

Coated and Building Products North America – acquisition turnaround

Comprises:Butler buildingsVistawall

FY2006 vs FY2005 EBIT variance

Sales revenue up 7% to A$1,213mEBIT to A$27m (turnaround)FY2006 return on net assets (pre-tax) 12%

Performance FY2006 vs. FY2005− Buildings

− Increased despatches− Higher transition costs

associated with closing Galesburg and opening new Tennessee plant

− Vistawall− Higher sales− Partly offset by higher

aluminium and energy costs

FY2006-2H vs. FY2006-1H− Overall margin improvement due

to overcoming start-up issues at the Tennessee plant and lower steel feed costs

-40

-30

-20

-10

0

10

20

30

40

50

FY June 03 FY June 04 FY June 05 Volume Net Price Raw Materials Conversion &Other Costs

FY June 06

EBIT

A$ M

illion

s

(18)

5

2739

10

(9)

(28)

(19)

Page 32

Coated and Building Products North America

MarketsOverall US economy currently shows strong GDP growth.The macroeconomic measures that have historically had strong correlations with the PEB and architectural aluminium markets continue to trend up.PEB tonnage shipments up for the year.

Business improvement initiatives completed during FY06Strengthened primary channel to market in Buildings group and preparing to enter alternate channels.Ramp-up phase at Jackson, Tennessee plant complete. Addressing opportunities for further efficiency improvements.

Video

Vistawall increased production capacity with new extrusion press; strengthened market channels by adding service centres and expanded corporate account program.

Forward looking initiativesImprove Buildings cost position by lowering conversion costs and further improving delivery performance.Grow market share through increased Builder recruitment and segmentation.Improve lead times and on-time deliveries of Vistawall product by adding fabrication and metal processing capacity.Pursuing opportunities to build global alliance relationships.Increased use of BlueScope product

Page 33

Coated & Building Coated & Building Products AsiaProducts Asia

Page 34

Coated and Building Products Asia – it is time to deliver

FY2006 vs. FY2005Sales revenue up 5% to A$1,075m, including A$227m from BlueScope Butler China EBIT down 101% to (A$1m)FY2006 return on net assets annualised (pre-tax) 0%

EBIT variance analysis

Main variances− Lower sales prices across Asia− Higher unit costs from ramp-up of new

facilities (Thailand, Vietnam & China)− Higher zinc and aluminium costs− Taiwan performance and closure− Partly offset lower HRC & CRC feed

costs

-20

0

20

40

60

80

100

120

FY June 03 FY June 04 FY June 05 Prices Volume / Mix Conversion &Oth Costs

Raw MaterialCosts

Other FY2006 PreOne-offs

One-offs FY June 06

EBIT

A$ M

illion

s

(41) (3)

(46) (26) (1)

34

(2)

83

25

102

84

Page 35

Coated and Building Products Asia – meeting the challenges

-20

0

20

40

60

80

100

120

2002 2003 2004(I) 2005 2006 2007 2008 20090

200

400

600

800

1000

1200

EBIT Sales Revenue

FY2007 onwards stronger revenue growth andEBIT recovery

EBITA$m

Sales RevenueA$m

High Capex Phase

New production ramp-up phase

Notes(1) Acquired Butler China April 2004

Fiscal Years

Page 36

0

20

40

60

80

100

120

Arce

lor +

Mitt

alPO

SCO

JFE

Nipp

on S

teel

Baos

teel

US S

teel

Nuco

rCo

rus

Seve

rsta

lTh

ysse

n Kr

upp

Evra

z

Gerd

auW

uhan

Chin

aSte

el

Maan

shan

Blue

Scop

eCS

N

SSAB

Tata

Ste

el

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

IndustryConsolidation

Reve

nue (

US$m

)

Stee

l Pro

duct

ion

(mt)

Downstream

Midstream

Upstream

Global Steel IndustryGlobal Steel IndustryStrategyStrategy

STRATEGY

Millio

n To

nnes

Compound Annual Growth Rates

0

200

400

600

800

1000

1200

1950 1960 1970 1980 1990 2000 2005

Page 37

Global steel industry – our long term view has not changed

Current industry issues:

China’s capacity growth / fragmentation

Higher raw material costs

Higher energy and other costs (coating metals)

Increased volatility

Steel availability

Non-China steel world

Continued production and capex discipline

Continuing industry consolidation

India – growing steel requirements (3 - 5 years)

Likely industry outcomes long term:

China – steel reform initiatives taken / exports discouraged

China – increased demand / steel displaces other materials

Prices and spreads improve and then stabilise

Raw material costs moderate – steel industry backward integrates

Other costs remain high

Competition BUT on increased global demand

Expansion programs being re-evaluated

Consolidation continues

Page 38

Global steel industry consolidation into “mega companies”

0

20

40

60

80

100

120Ar

celo

r + M

ittal

POSC

O

JFE

Nipp

on S

teel

Baos

teel

US S

teel

Nuco

r

Coru

s

Seve

rsta

l

Thys

sen

Krup

p

Evra

z

Gerd

au

Wuh

an

Chin

aSte

el

Maan

shan

Blue

Scop

e

CSN

SSAB

Tata

Ste

el

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Base Production (Mt) Revenue (US$m)

80mt GAP

Page 39

World crude steel production - 1950 to 2005 – China driving growth

0

200

400

600

800

1000

1200

1950 1960 1970 1980 1990 2000 2005

Millio

n To

nnes

6.0%

3.1%

0.3%

2.8%

Compound Annual Growth Rates

Source: IISI, BSL

China: 9.1%

World Excluding China: 1.2%

(1995-2005)

Japan: 6.9%

World Excluding Japan: 1.8%

(1965-1980)

USSR: -4.1%

World Excluding USSR: 1.1%

(1980-1995)

Page 40

Our strategy remains unchanged and is focused on growing value and diversification and more stable revenue / earnings profile

Downstream

Midstream

GROWTH PROJECTS

FY2006 Completed

AsiaIndia - start-up PEB and Lysaght facilities at PuneChina – Guangzhou buildings start-up

USA Successful turnaround of Tennessee facility.Vistawall expansion

AsiaThailand – start-up second metal coating line (MCL2)– ramp up CRC

Vietnam – start-up metal coating (MCL) and paint line (PL)China – start-up paint line (PL)

USANorth Star BlueScope best ever operating performance

FY2007 FY2008

AsiaThailand – start up PEB facility (1Q)India – start up Lysaght facility at Chennai & New Delhi (2Q)China – new panels, residential plants & new beam facility

AsiaThailand – MCL2 & CRC Ramp up, start up PEB facilityVietnam – MCL & PL ramp upChina – start up MCL (1Q), ramp up MCL & PL

AustraliaSydney Colorbond ® plant start up (2H)

AsiaIndia – new MCL & PL constructionIndonesia – MCL2 & PL2 (project deferred)

Australia400kt HSM expansion at PKSW (1Q)

New ZealandFront end study

USANorth Star BlueScope – new bag house

AustraliaBF No 5 reline (expected 2Q)Upstream

Page 41

Acquisition of stake in Smorgon Steel

The Global steel industry is consolidating and BlueScope Steel has repeatedly stated the existing Australian structure works effectively and that we would not initiate a changeA change is now occurringSmorgon Steel has indicated a preparedness to sell and break-up its businessThe proposed merger of OneSteel and Smorgon Steel, in its current form, is not in the interests of BlueScope Steel’s shareholders BlueScope Steel has acquired approximately 19.9% of the outstanding shares in SmorgonSteel at an average price of $1.77 per share at a total cost of approximately $320mA revised ‘Scheme of Arrangement’ may represent an opportunity for BlueScope Steel to acquire businesses which:

fit our strategy and portfolio of businessesadd value to commodity HRC and other flat steel products, andprovide improved channels to market

BlueScope Steel has no intention to acquire further Smorgon Steel shares, but reserves the right to do so in different circumstances

Page 42

FinancialsFinancials

Page 43

Earnings performance remains leveraged to steel prices

A$ Millions 2002(1) FY2003 FY2004(3) FY2005 2006-1H 2006-2H FY2006

Revenue 4,593 5,302 5,770 7,964 3,892 4,139 8,031

EBITDA(2) 412 881 1,104 1,655 593 257 850

EBIT(2) 160 611 818 1,358 449 107 556

Reported NPAT 452 584 982 312 26 338

Reported EPS(cps) 57.1 77.8 134.0 44.0 3.9 47.9

(1) 2002 normalised.(2) Includes EBITDA & EBIT for North Star BlueScope Steel but not revenue.(3) Includes two months of BlueScope Butler financial results.

Page 44

Underlying FY06 BSL financial performance

June ’06 restructuring includes:A$m

- PP impairment and closure costs 120- Staff and executive restructuring 32- Taiwan closure 8- CPL7 closure 13- Rail operation outsourcing 9- Other 3

185

Other unusual and one-off adjustments include:

- Business development and pre-operating costs 40

- Western Port fire 40- Losses from Packaging Products

and Taiwan business to be closed 43- Asset sales (Myaree & Galesburg) (14)- Other 6

115

Total 300

June 06Restructure Costs

Other One-off & UnderlyingReported Results Restructuring

Results B4unusual Results

556

115

185

856

741

EBIT A$m

NPAT 338 132 470 94 565

EPS 0.48 0.19 0.67 0.13 0.80

Page 45

EBIT variance FY2005 to FY2006 by reporting business segment

From (FY2005) $1,149M $(183M) $189M $83M $199M $(18M) $(61M)

To (FY2006) $456M $(198M) $105M $(1M) $188M $27M $(21M)

Issues • Iron Ore +Coal costs

• Steel pricesdown

• WP fire• Zn & AL• Tin mill

performance

• Reliability• Production• NZ market

• Stocks• Growth• Taiwan

• Scrap spread• Production

record

• Restructured• Jackson fixed• Margin

growth

• Lower profit in inventory

0

200

400

600

800

1000

1200

1400

1600

FY 2005 Hot RolledProductsAustralia

Coated &BuildingProductsAustralia

New Zealand &Pacif ic Steel

Products

Coated &Building

Products Asia

Hot RolledProducts North

America

Coated &Building

Products NorthAmerica

Corporate &Group

FY 2006

1,358

(693) (15)(84)

(84) (11) 45 40

556

EBIT movements

EBIT

A$ M

illion

s

Net raw materials (286)

Page 46

EBIT variance FY2005 to FY2006 by itemEB

IT A

$ Milli

ons

0

200

400

600

800

1000

1200

1400

1600

FY 2005 ExportPrices

Local Market Volume / Mix NSBSS Conversion& OtherCosts

Coal / IronOre

RawMaterialOther

ExchangeRates

Other FY2006 PreOne-offs

One-offCosts

FY June 06

Iron Ore (310)Coal (104)Opening Inventory 78

External Feed 132Scrap 44Coating Metals (101)

Restructuring / Redundancy (102)Asset Impairment 22Taiwan (23)

1358

(637)

246 56

(25)(77)

(336)

75556

65923

(24) (103)

Domestic Prices

Margin crunch:

Iron ore, coal, zinc and aluminium gross costs increase by over $500m

Net realised prices down by nearly $400m

Page 47

Balance sheet – BlueScope to focus on working capital

As at A$ Millions 30 June 2006 31 December 2005

Assets Cash 62 79 Receivables 1,344 1,081 Inventory 1,329 1,439 Other Assets 783 732 Net Fixed Assets 3,743 3,592

Total Assets 7,261 6,923

Liabilities Creditors 959 728 Interest Bearing Liabilities 1,952 1,709 Provisions & other Liabilities 1,265 1,207 Total Liabilities 4,176 3,644

Net Assets 3,085 3,279 Net Debt / (Net Debt + Equity) 38.0% 33.2%

Page 48

Cash - $551 million to shareholders and $816 million in capex

A$ millions 2002(1) 2003 2004 2005 2006-1H 2006-2H 2006 Cash from operations 795 1,012 1,671 569 334 903

Working Capital Movement (31) (94) (432) (222) 122 (100)

Net operating cashflow before borrowing costs and income tax

381 764 918 1,239 347 456 803

Net investing cashflows - Capital expenditure & Investments - Other

(162) 8

(209) 44

(585) 7

(663) 41

(381) 15

(435) 8

(816) 23

Net cashflow before financing & tax 227 599 340 617 (19) 29 10

Net financing cashflow (468) 309 348 642 230 872

Payment of income tax (29) (119) (312) (240) (116) (356)

Share buy-back (26) (259) (327) (74) (21) (95)

Dividends - ordinary - special

(75)

-

(191) (53)

(273) (75)

(174) (142)

(140)

-

(314) (142)

Net increase in cash held 1 27 (22) (7) (18) (25)

(1) 2002 normalised.(2) All periods normalised to reflect sale of receivables program cash flow movements as debt.

Page 49

Dividend reinvestment plan to be introduced

Implementation of the BlueScope Steel Limited Dividend Reinvestment Plan (DRP)

The DRP will be established commencing with the 2006 Final Dividend

The DRP provides benefits to both BSL and its shareholders including:A flexible capital management tool for BSLChoice for shareholders around how they receive their dividendCost effective method of increasing ownership in BSL

The DRP will be available to shareholders with registered addresses in Australia and New Zealand only

Eligible shareholders will receive detailed information on the DRP in September 2006 with participation responses to be returned by 5pm on 4 October 2006

The company intends to fully underwrite the DRP in respect of the FY2006 final ordinary dividend

63% of ASX 100 companies have DRPs

Page 50

EBIT remains sensitive to realised hot rolled coil prices and raw material costs – both were adverse in FY2006

Estimated impact on forecast EBIT

(A$mil)

Assumption

86

Full Year Full Year(previous)(current)

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

+/ 1¢ movement in Australian dollar / US dollar exchange rate(2)– 10 713 13+/– US$10 / tonne movement in NSBSL HRC price to scrap spread17 17+/– 2% movement in slab production in Australia, New Zealand & USA

50+/– US$10 / tonne movement in coal costs (3) 50+/– US$10 / tonne movement in iron ore costs 100(3) 100(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 Australian domestic coated product 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 and the

impact of translating the earnings of offshore operations to A$.(3) Coal and iron ore US dollar prices are predominantly locked in for FY2007.

Page 51

SummarySummary

Page 52

Questions and Answers

Dynamic Global Steel

Market

Dynamic Global Steel

Market

Geographic and Product

Diversity

Geographic and Product

Diversity

Strong Board & Management

Team

Strong Board & Management

Team

Growth Opportunities in

Asia

Growth Opportunities in

Asia

Low Cost Producer

Low Cost Producer

Strong and Flexible Capital

Structure

Strong and Flexible Capital

Structure

Profitable Through the

Cycle

Profitable Through the

Cycle

Consistently Strong Cash

Flows

Consistently Strong Cash

Flows

Strong Operating

Track Record

Strong Operating

Track Record

Value Added Branded Products

Value Added Branded Products

A VERY DIFFERENT KIND OF STEEL

COMPANY

FY2006 Results Presentation Period Ended 30 June 2006Kirby Adams, Managing Director and Chief Executive OfficerPaul O’Malley, Chief Financial Officer21 August 2006

ASX Code: BSL

Page 54

Supporting InformationSupporting Information

Page 55

Annualised production capacities and approved growth as at June 2006

ThailandCold Rolling 300kt

Metal Coating 375kt Painting 90kt

MalaysiaMetal Coating 160kt

Painting 70kt

IndonesiaMetal Coating 100kt

Painting42kt

Western PortHot Rolling 1.43mtCold Rolling 1.0mt

MC (3 lines) 830kt +Painting (2 lines) 330kt +

BrisbanePainting 90kt Port Kembla / Springhill

Raw Steel 5.1mtHot Rolling 2.4mt +400kt

Plate 360ktCold Rolling 930kt

[Tinplate/Black plate 450kt*]MC (3 lines) 750kt +PL (2 lines) 207kt +

New Zealand / PacificIron sand MiningRaw Steel 625ktHot Rolling 750ktCold Rolling360kt

Metal Coating 230kt +Painting 60kt

Hollow Sections 45ktPacific Roll forming sites 4

• Coated and Building Products North America

• North Star JVHot Rolling 1.80mt (100%)

• Castrip JV

Australia7 Service Centres31 Lysaght Sites

7 BlueScope Water

VietnamMC 125kt

Painting 50kt

Asia20 Roll forming

5 sites

ChinaMC 250kt

Painting 150kt3 Butler PEB

India(50:50 JV with Tata Steel)

MC 250kt (100%)Painting 150kt (100%)

2 Roll forming sites1 Butler PEB

SydneyPaint Line (1 line) 120 kt

* To be reallocated when business closed

Page 56

Calendar year earnings

A$ Millions CY2003 CY2004(2) CY2005 1H-CY2006

Revenue 5,328 7,029 7,980 4,153

EBITDA(1) 857 1,501 1,411 258

EBIT(1) 581 1,212 1,111 107

Net profit 436 859 792 26

EPS (¢) 56 116 110 4

(1) Includes EBITDA & EBIT for North Star BlueScope Steel but not revenue(2) Includes eight months of BlueScope Butler financial results

Page 57

From construction to production

All in A$millionTotal Est.

Capex / CostActual to 30/6/05

Actual FY2006 FY2007 FY2008 FY2009

Thailand – Coating expansion 80 78116

-

China- Coating and Painting Facility(3) 280 155 101 24 - -

India- Butler / Lysaght facilities(3)(5) 44 11 21 12 - -

Port Kembla:- HSM expansion 100 60 38 2 - -

6

-12

4442

- - -22010

25

-65

52334

-Indonesia – Coating / Painting(3)

(deferred in April 2006)145 - - -

Western Sydney Colorbond® 130 53 - -

- Blast Furnace No. 5 Reline(6) 300(4) 244 -

-

-

67

2

-

-

20 46

470… over 3 years

Vietnam – Coating / Painting(1) 136

- Guangzhou Butler / Lysaght(4) 33

133

1,381

- Coating / Painting(3)(5)

Total spending on major projects

Major project capital spending profile

(1) Key variation from total estimate to actual capex is currency movements. Original approved capital cost was $160m(2) Capital spent from approval to 30/06/06.(3) Estimated capital costs based on forecast exchange rate assumptions at time of project approval.(4) Key variation from total estimate to actual cost is better cost performance. Original approved capital cost was $35m(5) India developments represent BlueScope’s 50% interest, noting these developments will be funded by the BlueScope Steel and Tata Steel joint venture.(6) Indicative, based on project study. Final cost and phasing confirmed later in CY2006

Page 58

Huge increase in FY2006 Zinc and Aluminium costs

Tonnes Zinc Aluminium

AUSTRALIASpringhill 21,250 10,000

Western Port 17,500 9,500

Sub-total 38,750 19,500

NEW ZEALAND 6,500 3,500

NORTH AMERICAVistawall - 30,000

ASIA 12,250 11,250

TOTAL 57,500 64,250

Note:In future years BSL Asia’s usage will increase as new mid-stream projects come into operation and ramp-up to capacity

Page 59

Hot Rolled Products Australia - product flow (Indicative) FY2006

Port Kembla Steelworks5.3mt slab FY2006

(5.1mt slab FY2005)

Hot Strip Mill (1)

49%(51%)

Export Slab (1)

27%(20%)

Plate Mill8%(8%)

C&BP Australia (2)

(Western Port)16%(21%)

Export HRC25%(12%)

C & BP Australia (2)

(Springhill)54%(60%)

Domestic HRC21%(28%)

Notes:(1) +400kt HSM expansion was completed July 2006. Technically it will take approximately 6 months to

ramp-up production by the additional 400kt. This will reduce slab sales by an equivalent amount.(2) “C&BP Australia” is Coated and Building Products Australia

Page 60

New Zealand Steel (FY2006) product flow*

Export Hot Rolled 39% (28%+11%)

Domestic Pipe4%

Domestic Hot Rolled8%

Export Cold Rolled14% (8%+ 6%)

Domestic Cold Rolled11%

Coating lines75%

Export Metal Coated17% (10% + 7%)

Domestic Painted19%

Domestic Metal Coated57%

ExportIron Sand

Concentrate0.9mt

Export Vanadium Slag

15 kt

Mine SitesIron Sand Concentrate

2.1mt * Indicative annual prime production and sales (t)

New Zealand Steel0.6mt Slab

0.6mt Hot Rolled

Cold Strip Mill49%

Export Painted7% (5%+2%)

(External % + Internal %)

Page 61

Our customers are our partners

Our Market OfferHigh quality productsAdvertising / promotional supportServiceDeliverySatisfaction WarrantyTechnical Support

Creating New productsNew markets

TUBEFORM®

XLERPLATE®

Page 62

Our Asian Coating / Painting / Roll-Forming / PEB Capacity to improve twofold by FY2009

490

990

175

420

0100200300400500600700800900

10001100

FY2006 FY2007 FY2008 FY2009Metal coating Painting

By Region

X 2

X 2.4

(k to

nnes

)

Page 63

Coated and Building Products Australia – packaging products material flow chart

1. Pickling

2. Cold Reduction

3. Annealing

4. Temper Rolling

5. Electrolytic Tinning

6. Final ProcessingContinuous

..& Batch

or

Single Reduce (TM1)

Double Reduce (TM2)

or

ET2

or

ET3

Cleaning..

TemperMill 2

Page 64

Value-added Solutions

Graffiti Remover

FY2006 Results Presentation Period Ended 30 June 2006Kirby Adams, Managing Director and Chief Executive OfficerPaul O’Malley, Chief Financial Officer Business Presidents21 August 2006

ASX Code: BSL