Managing Director & CEO Update 2009 Annual General Meeting

Paul O’Malley, Managing Director and Chief Executive Officer12 November 2009

ASX Code: BSL

Very good safety performance

Page 3

16.0

14.0

8.0

4.8

3.54.1

3.52.8

1.8 1.50.9 0.8 0.80.6

0.91.2

0

2

4

6

8

10

12

14

16

18

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009FY

Lost

time i

njurie

s per

milli

on m

an-h

ours

worke

d

Medically Treated Injury Frequency RateLost Time Injury Frequency Rate

60.0

52.2

47.1

29.1

22.4 21.9

17.0

12.49.4 8.3 9.4

6.6 5.66.8 6.58.2

0

10

20

30

40

50

60

70

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009FY

Medic

ally t

reate

d inju

ries p

er m

illion

man

-hou

rs wo

rked

Includes Contractors from 1996Includes Butler from May 2004

Includes 2007/8 acquisitionsIncludes acquisitions for FY 07/08

Includes Contractor from 2004Includes Butler from May 2004

Includes 2007/8 acquisitionsIncludes acquisitions for FY 07/08

LTIFR and MTIFR FY 2009

Page 4

BlueScope Distributions’ safety performance - pre and post acquisition

Lost Time Injury Frequency rate Medically Treated Injury Frequency rate

21.71

8.21 7.535.66

3.29 3.42 4.39 3.78 2.740.36

0.00

5.00

10.00

15.00

20.00

25.00

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

47.58

59.78

37.67 36.45 38.19 38.2631.34

27.42 26.19

13.27

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

Post Acquisition (August 2007)

Tony Brown, Michael Carr and Paul de Bruyn

3 of several Western Port employees who volunteer with the CFA and SES

Page 6

BlueScope’s contribution to Victorian Bushfire Recovery Program

$140,000 from employee donations$ 1 million in steel building products

Overalls, clothing and volunteers

Page 7

BlueScope Steel supports communities around the world

Page 8

Responding to environmental issues ….

Page 9

Steel - most recycled material in the world

Page 10

US Coast Guard Mobil, Alabama, USA

Page 11

Ara Winery, Marlborough, New Zealand

Page 12Armed Forces Development Command, Bangkok, Thailand

Page 13

BlueScope has invested $500 million towards environmental projects globally

Western Port, Victoria

Page 14

14 billion litres recycled water used in Port Kembla’s steelworks since 2006

Western Port recycling project will cut fresh water use by 65%

Page 15

Australia’s Carbon Pollution Reduction Scheme (CPRS)

BlueScope committed to reducing its CO2 emissions

Participating in research for new, lower carbon steelmaking technologies to reduce emissions

CPRS must not damage BlueScope Steel’s international competitiveness

Two major concerns still to be addressed by the CPRS:Level of permit allocationReassurance about approach to Scope 3 emissions

Page 16

A co-generation plant at PK Steelworks would be one of the largest GHG abatement projects in Australia. Would offset 1 million tonnes of GHG yearly = removing nearly 200,000 cars off the road annually.

Page 17

Australia’s Carbon Pollution Reduction Scheme (CPRS)

• Government incentives needed for large-scale abatement projects

• Current CPRS will not provide an incentive

• Current CPRS must be amended so it does not impair our international competitiveness

Page 18

$295 million cost savings in 9 months

• Flexible work practices saved BlueScope jobs

• Production volume related costs lowered: - China and Vietnam coated by ~ 40% - USA – Butler by 18%; Varco Pruden by 35%

• Reduced value of inventory on hand from $2.8 billion to $1.7 billion

• Capital expenditure significantly curtailed – apart from No 5 BF reline and Sinter plant upgrade projects

• Restructured debt facilities; raised additional equity funding; gearing was reduced to under 12%

Page 19

Outlook for the global steel industry

Page 2010 October 2009

-70

-60-50

-40

-30-20

-10

0

1020

30

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-0

8Ju

l-08

Aug-08Sep

-08Oct-

08Nov-0

8Dec

-08Ja

n-09Feb

-09Mar-

09Apr-0

9May

-09Ju

n-09

Jul-0

9Aug-09

US EU (27) ChinaIndia Asia ex. China & India S.AmericaMiddle East C.I.S.

%

China leading the recovery

Monthly Crude Steel Production (y-o-y%)

ChinaMiddle East

India

Asia (excl China/India)

Page 21

China GDP rebounded from 6.1 % in 1st quarter to 8 % in 2nd quarter 2009, mainly due to its Government economic stimulus package

Page 22

From 2009/2010, new projects to increase both railroad and expressways by around 20,000 km each

Page 23

A buoyant China helps Australia’s economy which improves domestic steel demand

Page 24

Page 25

An Excellent Reference List of Over 2,000 Projects

Page 26

India will increasingly become an important market for Australia

Our first rollforming and PEB facility - Pune, India

Page 27

Outlook for the global steel industry

Trading conditions and outlook

Waiheke Island, New Zealand

Page 28

Australia • No 5 Blast Furnace reignited 19 August

• Both furnaces now running 100% capacity

• Domestic markets recovering and expect: - Residential – moderate growth to continue - Non-residential – to remain depressed

• Export demand improving

• Subject to demand, intend running both furnaces at 100% into third quarter

• International prices moderated; Domestic prices likely to reduce in 3rd Q

New Zealand• Domestic despatches not yet recovered;

partly offset by export despatches

Page 29

North America• Non-residential construction segment

remains weak• North Star BlueScope margins challenging

Asia• Positive results for all countries in 1st quarter• In South East Asia demand remains

generally strong• Looking to finish Indonesia’s 2nd coating and

painting line• Resuming production on Thailand’s 2nd

metallic coating line• China coated business keeps improving;

Buildings and Lysaght businesses have good order books

Page 30

Outlook for 1st half FY2010

• Some positive developments but remain cautious

• Continue to expect to post a small loss for the 1st half year

• Further update provided at half year results in February 2010

Page 31

BlueScope Steel well placed for the recovery

Interventions taken early and swiftly

Due to support from shareholders, customers, employees and management.