#1CSR Limited Triniti 3 39 Delhi Road North Ryde NSW 2113 Australia T +612 9235 8000 F +612 8362 9013 E-mail [email protected] www.csr.com.au ABN 90 000 001 276 10 November 2022 Mr Justin Nelson Principal Adviser - Listings Compliance Australian Securities Exchange Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Justin, CSR Limited (CSR) Investor presentation CSR Limited (ASX:CSR) is hosting an Investor Briefing today, Thursday 10 November 2022, in North Ryde, New South Wales. A copy of the Investor presentation is attached. The presentation will be webcast from 9.00am AEDT this morning, and can be accessed from the CSR website at https://www.csr.com.au/investors-and-news/webcasts or Click here. Copies of the presentation material will also be available at https://www.csr.com.au/investors-and-news/presentations-and-results. Yours faithfully Chambient. Jill Hardiman Company Secretary This announcement has been authorised for release by the Board of Directors of CSR Limited. CSR#2CSR LIMITED | 10 NOVEMBER 2022 Investor Presentation CSR#3Agenda 1 STRATEGY OVERVIEW - Julie Coates Managing Director and CEO Safety and Sustainability Streamlined Organisation Customer Solutions Supply Chain 2 HEBEL GROWTH STRATEGY - Andrew Rottinger EGM Construction Systems 3 4 PROPERTY STRATEGY - David Fallu CFO and EGM Property and Aluminium KEY PROPERTY PROJECTS - Andrew Mackenzie GM Property LO 5 SUMMARY AND Q&A - Julie Coates and Team CO 6 DEPART FOR HEBEL SOMERSBY SITE TOUR CSR 2#41 Strategy overview - - Julie Coates Managing Director and CEO CSR#5Delivering results and improving the business for the future Progressing strategy and delivering results Growth and resilience - Strategy progressing well – investing in the business while capturing current market opportunity and driving performance Work to reorganise the business, build capability, focus on supply chain and establish dedicated customers solutions is supporting growth and resilience Ongoing manufacturing investment to improve safety, sustainability and productivity Making the business more responsive to demand Optimising network ☐ Proactive approach to network strategy and development capability is supporting further value unlock from property assets Strong financial position Financial position supports investment and shareholder returns Strong financial results and strategy momentum positions CSR for long-term growth and improved performance through the cycle 4 CSR#6CSR's unique portfolio of leading building products and systems CSR Trusted and recognised in construction sector for quality, performance and compliance MANUFACTURING AND LOGISTICS EXPERTISE 30+ major manufacturing sites across Australia and NZ Core raw materials sourced locally 2,500+ employees EXTENSIVE DISTRIBUTION NETWORK 100+ Extensive network of CSR branded outlets and distribution centres (metro and regional reach) CUSTOMER REACH MARKET LEADING BRANDS GYPROCK #1 18,000+ customers across Australia/NZ Dedicated customer solutions focus Bradford #1 hebel The better way to build afs Monier™ ROOFING #1 #1 #1 CEMINTEL #2 PGH BRICKS & PAVERS #2 POTTER Martini HIMMEL INTERIOR SYSTEMS INTERIOR SYSTEMS MURPHY 245 MURPHY GYPROCK Everything else is just patern " Underpinned by end-to-end supply chain and customer solutions focus CSR#7Improving CSR's performance and financial position Ongoing portfolio optimisation martini Acquired 70% interest in Martini, expanding commercial fit-out exposure afs Acquired AFS- extending exposure in high rise market PAVERS Acquired remaining 40% stake of Bricks JV hebel The better way to build Completed $75m Hebel expansion doubling capacity CSR Streamlining of CSR structure 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 CSR Net debt ($25m) Launched CSR Boral Bricks JV Expanded Hebel site at Somersby, NSW hebel BRICKS & The better way to build PGHER Completion of divestment of Viridian Release of PGH Darra, QLD site Acquired remaining 30% stake in Martini martini Release of PGH Horsley Park, NSW site 2022 CSR Strong balance sheet - net cash $142m CSR is well positioned for improved performance through the cycle CSR 6#8Diversification across end markets, regions and build cycle CONSTRUCTION MARKET DIVERSIFICATION 54% Detached 10% Medium density 8% High density 8% A&A 20% Non-residential BUILD CYCLE DIVERSIFICATION Structure Facades & Mechanical Fit-out afs BRICKS& PGH PAVERS Monier™ ROOFING hebel The better way to build GYPROCK CEMINTEL Bradford Bradford hebel The better way to build PGH BRICKS& GEOGRAPHIC DIVERSIFICATION HIMMEL 34% INTERIOR SYSTEMS 31% martini 18% New South Wales / Australian Capital Territory Victoria/Tasmania Queensland 5% South Australia / Northern Territory POTTER 6% Western Australia INTERIOR SYSTEMS 5% New Zealand 1% Other Product and systems portfolio adaptable to end market demand, positioning for improved performance through the cycle CSR 7#9Strategy provides a platform for growth and resilience... to deliver improved performance through the cycle Building solutions for a better future MASONRY & INSULATION INTERIOR SYSTEMS CONSTRUCTION SYSTEMS CUSTOMER SOLUTIONS Bradford PGHBRCS& GYPROCK martini hebel The better way to build Monier HIMMEL POTTER ROOFING INTERIOR SYSTEMS INTERIOR SYSTEMS afs smarter permanent formwork CEMINTEL Safety & Sustainability Customer Centricity Streamlined Organisation Transformation & Growth High Performance Teams 000000 + SUPPLY CHAIN Manufacturing Suppliers Warehouse Planning Sales Transport Network optimisation supporting value unlock from Property assets and development capability CSR 8#10CSR's purpose Our purpose. It informs our decision-making, drives advocacy for our team and our customers and provides our aspiration for future growth and sustainability Building solutions for a better future. CSR CSR#11Good momentum to deliver 2030 sustainability targets 2009-2020 CSR set four intensity targets TEN YEAR TARGETS COMPLETED IN 2020 ☐ WASTE PRODUCTION (Kg/Tonne of product) Achieved 57% reduction ENERGY CONSUMPTION (GJ/tonne of product) Achieved ↓24% reduction WATER CONSUMPTION (Ltr/Tonne of product) Achieved 13% reduction TOTAL SCOPE CO (Kg/Tonne of product) Achieved Completed TCFD climate 32% reduction change scenario analysis on CSR's largest businesses to guide strategic decisions, based on the financial impact analysis Developed staged approach to assess the risks and opportunities Set new targets in 2020 2030 Sustainability Targets AFFORDABLE AND CLEAN ENERGY SUSTAINABLE CIES AND COMMUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 13 CLIMATE 15 LIFE ON LAND 50% of electricity generated by renewable energy 20% energy reduction (GJ) p/t of saleable product (intensity) 5% of indirect spend by Procurement to be spent with social enterprises 75% reduction in solid waste to landfill 30% reduction of potable water consumed (ltr) p/t of saleable product (intensity) 30% reduction of greenhouse gas emissions (CO2e) kg p/t of saleable product Enhance biodiversity outcomes on CSR sites and developments Progress in 2022 Independent review for alignment to 2030 targets and identification of potential pathway to transition to net zero Developed an overarching Sustainability Framework aligned to CSR's strategy ■ Further work underway on refinement of goals, commitments and metrics across the five pillars Once finalised, this work with be integrated into CSR's sustainability strategy in 2023 Sustainability Focus Areas CSR'S SUSTAINABILITY FOCUS AREAS Empowering our people Thriving, inclusive and high performing team that is empowered to make the change we need Transition to Net Zero Decarbonising our business to operate in a low/no carbon world Closing the Loop Contributing to a circular building industry Leading Through Innovation Innovating to advance sustainability at CSR and across the building sector Building Communities Building long-term, mutually beneficial community relationships 10 Broadening sustainability focus areas, goals and commitments CSR#12Driving further improvement in safety Improvement in safety over last 18 months 44% improvement in total recordable injury frequency rate since March 2021 13.3 12.3 10.1 7.4 Mar-21 Sep-21 Mar-22 Sep-22 Key focus areas driving improvement ■ ☐ Managing high potential consequence risk as core priority Encouraging transparency of reporting Empowering teams at site level to help lead and take ownership for safety Significant improvement in metrics and data transparency Improved quality of workplace health, safety and environment resources in the Business Units Progress in 2022 All sites have Risk Reduction plans focussed on CSR wide Top Risks. 87% of CSR sites with no recordable injuries in the last 12 months 0 Zero recordable injuries at 124 sites 1 recordable injury 87% 9% at 13 sites 4% >1 recordable injury at 6 sites Strategy ■ Continued improvement in the quality of Risk Reduction plans ■ Rollout of Never Walk Past - cultural safety change program ■ Focus on leading indicator metrics such as Corrective Action Completion rate ■ Increased focus on contractor management particularly in Supply and Install 11 Continuing to build safety leadership culture across CSR CSR#13Streamlining the organisation - a key foundation of the strategy Streamlining for success Streamlining our organisation is an important enabler of our strategy 9 Business Units to 3, aligned to customer market segments Removal of duplicate roles Re-allocation of resources/capability build Customer solutions focus Central logistics team - a single integrated network More efficient Changing our ways of working Driving effectiveness of our day-to-day activities ■ Simplified systems and processes Capability and knowledge leveraged across CSR Business units - design and delivery of new capabilities Senior leaders sponsorship - champion the change Building capability More efficient logistics, technology, digitisation and manufacturing assets ■ System Selector - tool for customers ■ Project tracking - tool for Sales teams CRM - Customer Relationship Management system IBP - Integrated Business Planning ■ TMS - Transport Management System Warehouse & distribution Productivity/automation in manufacturing Streamlining the organisation has allowed us to promote an end-to-end approach and build capability in the key areas of Customer Solutions & Supply Chain. MASONRY & INSULATION INTERIOR SYSTEMS CONSTRUCTION SYSTEMS afs smarter permanent formwork CEMINTEL Bradford PGH BRICKS & Monier ROOFING PAVERS GYPROCK martini hebel HIMMEL POTTER INTERIOR SYSTEMS INTERIOR SYSTEMS The better way to build CUSTOMER SOLUTIONS 000000 SUPPLY CHAIN Manufacturing Warehouse 12 Suppliers Transport CSR Planning Sales#14Building capability in Customer Solutions We are building on our history of product and solution innovation by making it easier for our customers to trade with CSR and get access to information in more efficient ways. Customer Solutions Priorities Progress to date What's Next 1 Complete Solutions 2 Industry-leading technical support 3 Go to Market 4 Sales Unique portfolio of CSR solutions for housing, commercial and industrial segments delivering value to customers Providing quality, performing and compliant solutions for customer Development of CSR solutions leveraging multiple brands for apartment buildings and residential façades ■ Tech support for architects and designers ■ Centralised CSR technical expertise Completed product & system review to ensure compliance with NCC 2022 Delivery of first customer digital tools ■ Continued innovation in product and compliant solutions Sustainability improvements designed into products ■ Further digitisation of technical content - accurate product information and efficient format OneCSR approach - delivering a consistent, high quality customer experience Disciplined pricing process implemented Enhancing technology for digitising customer experience ■ Further maturity in pricing capability ■ Greater accessibility and efficiency to CSR product information Streamlined interactions that deliver value for our customers and CSR ■ Market segment strategies developed across CSR: Residential, A&A, Social & Infrastructure ■ Single pipeline of project opportunities and coordinated response - Project Tracking ■ Market segment strategies implemented Develop and leverage one integrated CRM for CSR CSR 13#15Supply chain capability driving CSR wide benefits FROM "Each individual business..." Fragmented & inconsistent process and systems ΤΟ "CSR has...” ララ A consistent and scalable operating network OUTCOME A growth enabler that will drive a step change in performance CSR 14#16Supply chain capability driving CSR wide benefits Improved customer service ■ CSR wide customer solutions, leveraging an integrated network plan of factory and fulfilment capability ☐ Integrated business planning managing demand and supply constraints to improve a consistent customer fulfilment experience ■ Manual to systematic planning processes to drive greater efficiency CSR wide capability and responsiveness Capability to contract and expand logistics network Integrated view of network based on demand Organisational approach to master data enabling standard processes and better analytics Efficiency and cost management Improvements in working capital ■ Reduction in external service providers in transport and warehouse creating better cost position and stronger partnerships ■ Better financial management and visibility of freight activity ■ CSR transport contracts supporting execution of supply chain strategy and group wide commercial outcomes Sustainability ■ Contribution to sustainability outcomes (e.g. pallets and packaging reductions, shared fleet) ■ Optimisation of transport operations reducing total kms travelled Opportunity to leverage 'closed loop' outcomes Net investment in YEM23 and YEM24 while delivering strong Building Products results Net incremental benefits flowing through from YEM25 CSR 15#17Supply chain capability driving CSR wide benefits We are focussing on the CSR network of factories and logistics sites as a single integrated network in order to build capability to better serve customers Supply Chain Priorities Progress to date 1 Industry Leading Capability Advanced Supply Chain solutions delivered by the right people, process and systems ■ Established group logistics capability to lead warehouse and transport operations What's Next Embedding logistics capability and service proposition across the network 2 Integrated Business Planning 3 Transport Optimisation Strategy driven end-to-end planning linking sales, operational & financial plans and inventory Leverage group scale to procure, plan and execute transport Implemented consistent weekly and monthly planning processes across CSR Deployed transport management solution for linehaul and internal stock movements Deploy new planning system to drive process efficiency Deployment of TMS to customer delivery task 4 Network Strategy 5 Master Planning 6 Warehouse Optimisation Integrated, responsive and resilient network Group wide plans for plant and distribution (DC) sites Leading practice warehouse solutions for the group ■ Network strategies progressing for AFS, Hebel, Cemintel, Gyprock and Commercial Interiors to inform investment across network Completed master plans for Commercial Interiors, ■ Established import DC and master plan for first combined business DC in Qld Operational focus on reduction of overtime and realignment of workforce Continuing network strategy assessment ■ Business case development for network investment and infrastructure plans ■ Review of warehouse management system opportunity Investing in supply chain to become more efficient and responsive to demand 16 CSR#18Network optimisation maximising value of operational footprint PGH SITE NETWORK IPGH BRICKS & PAVERS PGH Oxley, QLD Key manufacturing site servicing QLD, Northern NSW and NZ Network strategy has improved competitive positioning of bricks manufacturing and enabled release of nearby Darra, QLD PGH site for property development Investment at Oxley site improved capacity to better support market demand, product quality and network and factory cost position Capex underway to improve kiln and dryer automation, unlocking additional capacity of 10m bricks per year Improving performance through the cycle CSR 17#19Investment to broaden capability and optimise performance GYPROCK SITE NETWORK H Ⓡ GYPROCK Gyprock Wetherill Park, NSW Key operating asset producing plasterboard and compounds, strategically located close to important end markets and distribution links $23m capital spend to build new capability to convert raw gypsum into stucco, a key plasterboard material input. Provides pathway for additional expansion Increased stucco capacity will improve quality of finished product and support new product development Significant reduction in GHG emissions through lower gas and electricity usage, and increase in recycled board capacity Reduce operating costs and increased value capture across manufacturing process Capturing earnings opportunity from market leading position in Gyprock CSR 18#20Incremental investment to optimise performance BRADFORD SITE NETWORK Bradford™ Bradford Brendale, QLD One of two key insulation manufacturing sites in Bradford network, servicing key markets in Australia and NZ Capex of $13m in packing automation and warehouse expansion and new water treatment plant Increase total Bradford insulation capacity by 10% to service increased demand (NCC2022) and reduce reliance on imported product Improve safety performance and cost position and increase earnings opportunity Supporting Climate Change targets - will reduce water consumption by 80% or 35 million litres pa Capturing earnings opportunity from growing demand for insulation CSR 19#21Hebel - strategy to double volumes in medium term Safety and productivity Increased automation Energy Peak load flexibility Water Aimed to have zero water waste ° Local sourcing Collaboration with local manufacturers and raw material suppliers hebel The better way to build $75m investment delivered world class capability Capacity to support demand over 5 year time frame Significant opportunity for increased penetration across residential housing, apartments and civil infrastructure and industrial Compelling environmental and build time attributes will support increased adoption Opportunity to leverage supply chain capability from local manufacturing base Environment Underground storage of raw materials to minimise dust emissions C Recycling Waste dust capture recycled back into the manufacturing process Product innovation Unique product range and service capability 20 CSR#222 Hebel growth strategy - Andrew Rottinger EGM Construction Systems CSR#23Hebel - The Better Way to Build hebel The better way to build Hebel is an ideal material for building walls and floors in construction and is a mainstream product in Europe since the 1920s and Japan since the 1960s. AAC adoption in these markets ranges between 20% to 40% respectively Hebel is a strong, versatile, high performance building product made from Autoclaved Aerated Concrete (AAC) ■ Non toxic, non combustible and has high thermal insulation properties and is breathable Shaped with common tools, easy to handle and quick to build with ■ Hebel panels contain anti-corrosion steel reinforcement for added strength and are available in a range of lengths and thicknesses Fully recyclable and uses relatively low amounts of energy in its manufacture How Hebel is Made Video Mix lime, gypsum, aluminium, cement, sand and water AAC is made from mixing cement, sand, gypsum, lime, aluminum and water into a slurry, pouring into a mould, combining steel reinforcement (for panels) and cutting into shapes (blocks or panels), then autoclaving under high pressure steam CSR 22#24Growth through innovation CSR built the first plant in 1989, expanded in 2015 and built another plant in 2019 at Somersby NSW - Capacity is 530,000 m3 pa Hebel home strategy grows external cladding with rendered finishes Hebel brand is exclusively licensed from Xella Germany (worlds largest AAC producer) Thinner party wall systems developed for multi res homes hebel The better way to build Material technology exchanges across the world coupled with our application technology has delivered unique systems for the Australian and NZ market Decorative cladding adds design versatility (PowerPattern & PowerProfile) 2010 2015 2020 Ongoing innovation including super smooth panels, curves and arches as well as new patterns and designs 23 Civil - Customised designs in sound barriers Highrise façade systems feature new pressure equalised system and decorative options Commercial flooring systems complement design flexibility of steel structures Application development and innovation capability underpinning product pipeline CSR#25Growth through diverse market segments and applications hebel The better way to build A28 CUMBERLAND HWY Pennant Hills USE LEFT LANE To PACIFIC an Hornsby RIGHT LANES HOUSES External walls Floors Fences DIY APARTMENTS Intertenancy walls Corridor walls Shaft walls Service walls High Rise facades Balcony blades Floors MULTI-RESIDENTIAL Zero Party walls External walls Intertenancy and party walls Floors Fencing CIVIL & UTILITIES Fire walls Acoustic/Firewalls Sound barriers COMMERCIAL & INDUSTRIAL External walls Internal walls Fire tunnels Intertenancy walls Corridor walls Shaft walls Service walls High Rise facades Balcony blades Floors * 24 FAST CONSTRUCTION STRONG AND SOLID THERMAL PERFORMANCE NOISE REDUCTION NON COMBUSTIBLE CSR TIMES#26Significant growth opportunity across market segments hebel Hebel strong momentum with relatively low share across key markets Potential to more than double volumes in the medium term Significant penetration upside based on comparable mature markets (eg Germany and Japan at ~30%) The better way to build. Housing and Apartments remain core segments, Commercial, Civil and Industrial an opportunity % of Hebel volume 50% Detached/MR Housing 40% Apartments 10% Civil/Industrial/Commercial ◉ Significant opportunity to grow share across all key segments - Detached - Multi-Residential - Apartments - Civil/Industrial/Commercial 25 CSR#27Residential Housing - application and opportunity hebel The better way to build External Cladding Party and Boundary Walls Mid Floors Largest application in the segment Pricing in line with bricks with 3x thermal performance Larger installer base vs brick and reduces build time by 10 days Product development improving aesthetics and reducing system cost Shared walls in adjacent dwellings and key application in Multi-Res Growing demand due to higher density housing ■ Preferred system due to long, thin panel design Installation post framing reduces build time by 2 weeks Mid-floors in 2+ storey dwellings replacing 19mm particleboard Reduce sound transfer from higher floors Powerfloor emerging as standard offering for premium home brands New product development (NPD) aimed at reducing installed cost and increasing aesthetic options Addressable market is 3x current volumes 22 CSR#28Apartments - expanding applications per building hebel The better way to build Internal Party & Corridor Importance of acoustic and fire performance Popular system with large developers due to lower compliance risk and ease of installation Walls External Facades Performance Walls Structural Floors Lower cost solution for non load bearing walls vs precast ■ Flexible design including patterned panels and modern renders ■ Lower weight aids freight and crane utilisation - important in high density building areas Include blade, shaft walls, components for offsite construction Fire rated solution that is simple and cost effective to install ■ Cost effective solution when combined with steel structures (reduce structural steel costs by up to 30% vs concrete floors) Light weight without compromising the feel of concrete NPD aimed at lower installed cost systems and structural solutions Addressable market is 50% increase on current volumes 27 27 CSR#29Civil Infrastructure and Industrial Buildings hebel The better way to build Civil Sound Walls Utilities Industrial Buildings Lower cost acoustic solution Meets strict fire regulations Custom patterns meet landscape design requirements Require high levels of fire and acoustic performance ■ Hebel can be tuned to remove substation "hum" to increase available land for housing ■ Lower weight vs precast provides more cost effective transport (particularly regional/rural areas) ■ Hebel is versatile and provides high levels of fire and acoustic performance ■ Hebel engineering team provide specific technical design for each project NPD aimed at improving engineered solutions Significant addressable market based on potential Hebel applications 28 CSR#30How to unlock it Creating Demand World leading AAC technology CSR Trade advocacy Supporting trade reseller hebel The better way to build ■ Conducive external environment - Building margins under pressure - Labour shortages - Increased focused on sustainability 29 CSR#31Creating demand across projects and residential customers Project Sales - Commercial, Apartment, Medium Density Homes Residential Detached Home Sales hebel The better way to build Technical Activity Project Stage Supply Activity Technical Activity Customer Stage Supply Activity Value engineer options Design Value engineer options and aesthetics Design Create solution suite with supporting documentation Specification Tender Recommend Contractors Update construction details and cost analysis Detailing and costing Recommend Contractors Agreements Supply product, Project specific detailing Build site support (install and compliance) Project specific detailing Sales and marketing rollout Finalise commercial terms. Onsite trials Finalise marketing support. Build display home. Train staff. Sales and Technical teams configured to drive Project and Customer sales ■ Portfolio scale supports the sales effort. CSR systems enhance process capability - Project tracking and CRM tools. ■ Marketing drives brand relevance and aspiration amongst consumers, support material for trade and channels Build Supply product and site support Project sales are 50% of demand and are based on targeting and converting projects with a defined timeframe Customer sales are the balance and are based on building customer advocacy and repeat business 30 CSR#32Building trade advocacy to deliver a good experience ■ Hebel trades are easier to find and ☐ faster to develop vs masonry Developing and supporting a growing and diverse contractor base - Training new recruits Creating estimates and project layouts that minimise site waste Testing new tools and improving site safety On-site advice and feedback to ensure projects run smoothly and trade crews learn hebel The better way to build Hebel Training period 12 weeks Build time 5 days Brick 4 year apprenticeship 10 days Ease of supply and install and limited Site requirements coordination requirements Coordination of multiple product delivery, mortar etc Upskill opportunity Carpenters often add Hebel in skill base Attracting and training labour to install Hebel is easier than brick Not applicable 31 CSR#33Supporting trade channels - increased role of aggregation hebel The better way to build ■ Role of aggregation is becoming more important in cladding and in regional areas ■ CSR Pricing Systems ensures channel margins remain correct ☐ ■ Hebel and Cemintel Fibre Cement provides better support for reseller service ■ Distribution through all major aggregators and resellers including Bunnings and Mitre 10 nebel hebieb hebel battery ba hebel hebel hebol The better y hebel hebel hebel bell 0 hebel hebe TOYOT 40 32 CSR#34World class AAC panel making capability $75m capacity expansion completed in 2019 enhances capacity and capability - Improved panel size and surface finishes Improved productivity and low cost base - Improved energy efficiency and capability to recycle ■ Well established partnerships bolster local capability hebel The better way to build Capacity 200,000 M3 1989 CSR builds Line 1 at Somersby NSW Capacity 250,000 M3 Capacity 530,000M3 2015) 2019 CSR expands CSR builds Line 2 Line 1 at Somersby NSW 33 Capacity headroom to double volumes over medium term CSR#35Sustainability credentials a key competitive advantage hebel The better way to build ■ ◉ Sustainability credentials becoming an increasingly important key point of difference Manufacturing process is less energy intensive vs traditional building materials - - Technology available to completely recycle heat, water and waste Electrification of steam production is technically simpler Future potential to use low carbon cement Safety and productivity Increased automation ហ Energy Peak load flexibility enables 30% of steam to be transferred between autoclaves with the remaining steam diverted back into the boiler system Water Aimed to have zero water waste including rain recycling into an 800,000 litre basin Environment Underground storage of raw materials to minimise dust emissions Recycling Waste dust capture recycled back into the manufacturing process. All excess waste materials are reused in the production process while plant automation allows for more efficient use of raw materials and reduced shutdown times 34 CSR#36Summary hebel The better way to build ■ Hebel is a unique and low energy building material used in the construction of walls and floors ■ Hebel adoption is growing within the ANZ building sector with the major markets being residential detached and multi unit dwellings and apartment buildings Hebel market share is relatively low with clear opportunity to double volumes in the medium term ■ The growth strategy centres on - Creating demand for AAC, Building trade advocacy, Supporting trade channels, Having a local manufacturing capability that is low cost and can make the products of the future ■ Manufacturing capacity exists to support growth and has a competitive advantage in delivering sustainability goals CSR 35#373 Property strategy - David Fallu CFO and EGM Property and Aluminium Holliers Holliers F F F 5 F LE A CSR 36#38CSR Group Property Experienced Team CSR Specialised Capability CSR Group Property is an in-house team which is responsible for expansion, management and advancement of sites through various stages of the property cycle Extensive experience in managing large scale property projects including: ■ Planning and site rezoning ■ Civil works ■ Physical delivery works: Infrastructure and construction ■ Corporate strategy ■ Project management ■ Site acquisition and divestments Long Term Results $1.5bn in property opportunity Over $50m annually in contracted and completed transactions YEM21 to YEM25 Property supports the strategic positioning of our sites, ensuring operational flexibility, managing the transition of sites and maximising the value of our Property assets once released. CSR 37#39Property Strategy delivering strong results End of operating life (Residential): Chirnside Park, VIC OVERVIEW > Monier owned land in a key urban growth area north east of Melbourne which was used as a clay quarry > Chirnside Park country club had aspirations to re-locate its golf course in the area > A sale and purchase agreement was negotiated for CSR to acquire the former golf course for residential development and sell the country club the clay quarry for a new golf course › Group Property obtained the rezoning for a 581 lot residential sub division DELIVERED DELIVERED DELIVERED BRENDALE, QLD (20km from Brisbane) CSR is completing the final stages of its Brendale Industrial estate which has approximately 35ha under development › Contracts have been exchanged on 15 lots (8ha) at a gross sales amount of $19.5m. Construction expected to be completed in late 2019. Current development projects - Queensland SOLD BY CSR 2011 INDUS DELIVERED DELIVERED DELIVERED OUTCOME » Enabled Monier to extract the remaining clay resources prior to the sale › CSR Building Products benefits from additional product pull through EBIT > $44m EBIT to March 2019 with settlement of 517 lots WARNER, QLD (20km from Brisbane) > The Warner landholdings are currently being used as an operational quarry Morton Bay Council have identified our land within previous urban land investigation studies › CSR has lodged an application for a residential zoning Operating site (Industrial): Horsley Park, NSW PGH Stage 1 Operating Site CSR WARNER RESIDENTIAL DELIVERED DELIVERED DELIVERED BRENDALE INDUSTRIAL OVERVIEW The site is currently being used for brick manufacturing. Clay resources onsite were exhausted which provided an opportunity to rehabilitate the site as an industrial park. The site totals 50 hectares (ha) and can be categorized into 3 stages: › Stage 1 (10ha): recently sold to Frasers Property Group for $58m and recognized in YEM19 results › Stage 2 (20ha): subject to an EOI process while it is being developed › Stage 3 (20ha): currently a PGH Brick operating plant STRATEGY > Finalise remediation + earthworks and take through to full development > Aim to transact Stage 2 in YEM 2021/2022 CONSIDERATIONS Operating site is surrounded by industrial development. This is primarily due to a shortage of zoned and serviced industrial land in Western Sydney, NSW 300 Landfill Lot Stage 2 E2 Enviro Land Property delivering average EBIT from completed and contracted transactions of over $50m per year from 2021 to 2025 30 CSR 38 CSR#40Property supporting strategic positioning of site network Urbanisation Industrialisation Bradford Monier ROOFING IPGHBRICKS GYPROCK martini HIMMEL hebel The beter way to build afs POTTER CEMINTEL INTERIOR SYSTEMS Raw Material Access Regulatory Compliance Network Optimisation for Building Products Over $1.5 billion in ongoing property opportunity for next 10+ years EXPANSION/ CONSOLIDATION DIVESTMENT REDEVELOPMENT RETENTION 39 Property supports the strategic positioning of our sites, ensuring operational flexibility, managing the transition of sites and maximising the value of our Property assets once released. CSR#41Market leading Property capability supporting strategic position of sites over all stages of lifecycle Surplus properties which are able to be sold / developed without any operational impact Contracted includes properties with binding sale agreements in place Time frame: 5 years Properties where operations are expected to be relocated / optimised within a 5 year time frame and the property can be developed / sold 1 2 Short-term opportunity Detailed plans developed to maximise value opportunity Surplus/ contracted Time frame: Long-term ownership Properties upon which operations are expected to last indefinitely CSR 4 3 Long-term operational Medium-term opportunity Time frame: ~5-15 years Properties where operations are expected to continue in the medium-term but there is the potential for the operations to be relocated / optimised 40 Significant opportunity over the next decade for property realisation CSR#42Increase in property valuation Independent valuation of property on an "as is" basis assessed as $1.5 billion ~$290m Key Western Sydney sites Additional freehold properties ~$440m ~$370m ~$400m $1.5bn $1.1bn Under contract Surplus Short term Opportunities Medium term Opportunities Property Opportunity Long-term operational 41 1 1 2 3 4 CSR#43Value-led approach to maximise Property returns CSR Property EBIT (A$m) 80 70 70 660 50 A$m 40 40 30 20 20 10 0 YEM21 YEM22 Contracted earnings YEM23 Average EBIT $54m YEM24 YEM25 42 CSR#44% value Additional option for value creation – strategic site ownership Opportunistic Sale "as is" ما Rehabilitation and rezoning DA / civil construction Final built development Timing Strategic Retain ownership option ■ For sites which are strategically located in favourable long term positions, CSR has the capability to: Develop and retain 100% Joint venture - particularly for scale sites or for partner value add ■ CSR land portfolio examples include: Badgerys Creek, NSW - 200ha co- located to Western Sydney Airport Darra, QLD - 20ha industrial site well located between Brisbane and Ipswich with favourable infrastructure access ■ The scale of these two sites presents numerous options as to how CSR retains ownership for ongoing annuity income and non-cash capital growth or monetises for value. 43 CSR#454 Key property projects - Andrew Mackenzie GM Property BF 77 PO GUARRI MULGOA RIES CSR 44#46Horsley Park, NSW OVERVIEW Former PGH brick plant, developable area 51 hectares (ha) delivered in 3 stages. Stage 1 (10ha): sold to Frasers Property Group for $58m and recognised in YEM19 results Stage 2 (20ha): sold to ESR for $142m and recognised in YEM21 and YEM22 results Stage 3 (21ha): Under contract currently to Digital Realty and NEXTDC for $208m to be recognised in YEM24 and YEM25. CONSTRUCTION UPDATE Final stage well advanced Construction on track Horsley Park Aerial Video Stage 1 Stage 3A Landfill 0 Stage 3C O Stage 2C 0 Stage 2B Stage 2A Stage 2A Stage 38 O 45 CSR#47Chirnside Park, VIC OVERVIEW ☐ ■ Group Property obtained the rezoning for a 582 lot residential subdivision Delivered 582 lots including 112 townhouses over the last 6 years ■ Final 8 townhouses to complete in December 2022 OUTCOME ■ CSR Building Products benefits from additional product pull through EBIT ■ $47.2m EBIT to September 2022 with settlement of 574 lots to date CSR 46#48Schofields, NSW Stage 2 OVERVIEW ■ PGH Bricks is currently manufacturing bricks on site; which falls in the NSW Government Northwest priority growth sector ■ The land totals 91ha and is proposed to be rezoned to residential, producing circa 1,525 lots total ■ NSW Government imposed a moratorium on releasing further residential land for development until the flood studies are completed Rezoning is now pending on the studies outcome, we have advanced the road design with Transport for NSW and commenced early planning with Local Council ■ All our lots are above the 1-100 flood level with 1,513 lots being above 1-500 year flood level CSR Land Holdings TOWNSON RD MEADOW RO Stage 1 Indicative 1 in 500 (0.2% AEP) Flood Extents for Part Precinct CSR 47#49Schofields, NSW WINTEN Stockland Marsden Park Stackland mirvac Marsden Park North 40 West Schofields, Future Marsden Park Town Centre Schofields Road Marsden Pa Industria asics COSTCO Hascall Grove Towmon Road Greenway Village- Shopping Centre CSR Greenway M7 Motorway Stockland Schofields Rail Station AKUNA VISTA Schofields Daskers Hill 48 CSR#50Badgerys Creek, NSW OVERVIEW ■ The site totals 196ha and is strategically located directly adjacent to Western Sydney International Airport. Site advantage includes predominantly a flat level site STRATEGY ■ Accelerate site rehabilitation ■ Work with statutory authorities on planning infrastructure delivery CONSIDERATIONS Airport due to open December 2026 ■ M12 and Metro line to be delivered in 2026 State Government accelerating employment opportunities in this growth area WESTERN SYDNEY Badges Creek Rd AIRPORT CSR Eastern Ring Road 49 CSR#51Badgerys Creek, NSW Northern ddenham Sales Park A9 vonthen KU Elizabeth Dr WESTERN SYDNEY AIRPORT METRO WESTERN SYDNEY AIRPORT Badg BRADFIELD CITY M12 Elizabeth Dr Mount Vernon Kemps Creek Eastern Ring Road Rossmore Park Mamre Rd Kemps Creek Nature Reserve Craik Rossmore Park Cecil Park West Hoxton M7 Middleton Grange HOX Pa 50 CSR#52Darra, QLD OVERVIEW ■ 20ha site (17km from Brisbane) ■ Site rehabilitation works to be completed in early 2023 ☐ High demand for Industrial land with limited supply Rezoning and development approval expected 1st half of 2023 Proposed 11 lot subdivision STRATEGY ■ Darra is an ideal site for the Develop and Retain strategy CSR#53Darra, QLD CSR 52#545 Summary and Q&A - Julie Coates and Team CSR 53#55Positioning CSR for improved performance through the cycle ■ CSR more responsive to demand with greater adaptability to serve different end markets Improved margin through the cycle - Growth of higher margin products (eg Hebel) ■ ☐ Better cost position Targeted investment in manufacturing and supply chain to deliver improved efficiency and resilience Net supply chain benefits pull through from YEM25 ■ Network strategy underpinning improved performance and value unlock from property ☐ Strong financial position supports investment and shareholder returns Strategy supporting growth and resilience CSR 54#56Disclaimer The material contained in this document is a presentation of information about the Group's activities current as of 10 November 2022. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the Group's periodic reporting and other announcements lodged with the Australian Securities Exchange (ASX). This document may contain forward-looking statements, including statements of current intention, opinion and predictions regarding the Company's present and future operations, possible future events and future financial prospects. While these statements reflect expectations at the date of this document, they are, by their nature, not certain and are susceptible to change. CSR makes no representation, assurance or guarantee as to the accuracy of or likelihood of fulfilling any such forward-looking statements (whether express or implied) and, except as required by applicable law or the ASX Listing Rules, disclaims any obligation or undertaking to publicly update such forward-looking statements. This document is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. 55 CSR