#19265 BLUESCOPE Investors' Visit to ASEAN Sites - May 2015 Pack 4: NS BlueScope Malaysia, Singapore and Brunei Pongsak Padungkarn, President - Malaysia, Singapore & Brunei Nathan Antonucci, VP Commercial – Malaysia, Singapore & Brunei May 2015 BlueScope Steel Limited. ASX Code: BSL#22 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. THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS "MAY", "WILL", "SHOULD", "EXPECT", "INTEND", "ANTICIPATE", "ESTIMATE", "CONTINUE", "ASSUME" OR "FORECAST" OR THE NEGATIVE THEREOF OR COMPARABLE TERMINOLOGY. THESE FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE OUR ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS, OR INDUSTRY RESULTS, TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCES OR ACHIEVEMENTS, OR INDUSTRY RESULTS, EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. 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BLUESCOPE#3BLUESCOPE INTRODUCTION#44 ZERO HARM We strive for zero harm Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate BlueScope group average 1H FY15: 0.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 YTD Safety Most business units 10-20 years Lost Time Injury free BlueScope group average 1H FY15: 4.6 2.4 2.2 2.1 2.1 1.9 1.4 1.5 1.7 1.4 0.5 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Environment • Full compliance with local law and regulations . All sites maintain Environment Management System (ISO14000) certification YTD BLUESCOPE#55 NS BlueScope in Malaysia, Singapore and Brunei MALAYSIA THAILAND Perlis Kota 0 100 km 0 60 mi 0 200 km Bharu Sulu Sea . 120 mi Penang Kudat Georgetown Kota Belud Taiping Ipoh Cameron Taman Kuala Kangsar Kuala Tasik Kuantan Tunku Abdul Rahman National Park Kota Highlands Negara NP South China Sea Mt Kinabalu 4101m Kinabalu Sabah Sandakan Lumpur Chini Port Kelang Tioman Island BRUNEI Miri Niah Caves Bandar Seri Batu Punggul Begawan Tawau LAYSIA MALAYSIA Straits of Melaka Gemas Bintulu Melaka Sematan Pandan Sarawak Celebes Sea • Muar Keluang Sibu Rejang Pako NP River INDONESIA Kalimantan INDONESIA Singapore Sumatra Kuching Sri Aman NS BlueScope Lysaght Metallic coating and painting facility BLUESCOPE BUILDING ASIAN ICONS FOR 50 YEARS BLUESCOPE LYSAGHT • NS BlueScope Malaysia coating and painting facility in Kapar Six Lysaght sites: four in Malaysia, one in Singapore and one in Brunei • First operation opened in 1965 • ~500 employees BLUESCOPE#66 Channels to market Coated Steel Manufacturer Customer Segments Channels Influencers Key Decision End-User Makers Segments Pre-Engineered Buildings EPC1 General General contractors fabricators Projects NS BlueScope EPC1 Lysaght Imports 1. Engineering, Procurement & Construction Large, medium and small roll-formers Contractors Distributors Roll Formers Contractors Architects & Designers Consultants & Engineers Association Project Owners Retail Manufacturing Home Owners Export BLUESCOPE#77 Macroeconomic environment (1/2) GDP growth is forecast to remain strong... Real GDP growth (% pa) 10.0 8.0 6.0 4.8 4.0 2.0 0.0 -2.0 -1.5 7.4 5.2 Real GFCF (investment) growth (% pa) 20.0 19.2 15.0 11.9 ம் 5.6 4.7 10.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Actual 8.5 tuli 6.3- 5.0 2.4 0.0 -2.7 -5.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IHS Global Insight forecast IMA Asia forecast Average While falling oil and gas prices are expected to impact growth, the outlook remains favourable • GDP per capita remains second highest in ASEAN • Investment growth is expected to remain strong, if lower than prior highs • FDI - a key segment for NS BlueScope - is expected to drive a high share of growth Source: IHS Global Insight, IMA Asia BLUESCOPE#88 Macroeconomic environment (2/2) ...with solid, if tempered, construction market growth Residential construction work done (% pa) Non-residential construction work done (% pa) 30.0 26.4 19.5 30.0 25.0 20.0 14.7 11.4 20.0 10.0 6.1- 15.0 0.0 10.0 8.4" -10.0 5.0 1.6 -20.0 0.0 -20.3 -30.0 -5.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 25.9 -1.5 17.6 13.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Actual IHS Global Insight Dec 2013 forecast . Some moderation from recent strong activity, but favourable growth conditions remain • Significant opportunity to grow share in this segment, independent of overall market growth . Note: Non-Residential construction refers to infrastructure, structures and I&C capacity work Source: IHS Global Insight Average Non-residential construction expected to remain stable at 4-6% CAGR Expecting ongoing fixed investment growth via major government projects (e.g. LRT project, SEDIA, SCORE) BLUESCOPE#9Business vision and strategic focus Key strategic areas of focus 6 Projects Improve product mix Improve penetration across the market Increase/Maintain product profitability on Projects and Retail SME segment Retail Retail channel geographic expansion Develop retail brand awareness Develop loyal dealers and channels Downstream Enhance market position Geographical coverage in Borneo Grow Supply & Install Grow loyal customers Convert Painted Galvanised Major strategic Convert tiles initiatives Refresh and enhance products Brand and loyalty programs Increase new channels and dealers in new geographies Further develop the ZACS family of products Increased market engagement Refresh the product range Increase share of Supply & Install projects BLUESCOPE#10Leadership team Country President PONGSAK PADUNGKARN Administration Manager ROWENA YONG Role to be filled Vice President Sales Midstream GAN CHING KOK President President Vice President Manufacturing Midstream NGAN ZE HONG Lysaght MY/Brunei Lysaght SG/SSC NG SAY TECK TARUN SINHA Vice President Commercial NATHAN ANTONUCCI Vice President Health, Safety & Environment JAMES WONG Vice President Human Vice President Vice President | I Resources J. KALAI Ext. Affairs Marketing & Supply Chain & Order Fulfillment AUDREY LEOW 10 BLUESCOPE#11BLUESCOPE NS BLUESCOPE MALAYSIA#1212 NS BlueScope Malaysia • . • NS BlueScope Malaysia is located in Kapar - Metal coating line, continuous paint line and new in-Line painting Began operations in 1996 Capacities: - Metal coating line capacity of ~150kt pa - Continuous paint line ~75kt - New in-line painting ~30kt 240 employees BLUESCOPE#1313 End user segments CityMall RANGEES BRANDS 3erm50 OUTLET 350 Projects Retail Manufacturing Export BLUESCOPE#1414 Key product applications Roofing Walling Framing and truss Louvres Ceiling and partition Rainwater goods BLUESCOPE#1515 Leading brands End user segment Painted brands Metallic Coated brands clean Colorbond Projects Capero BLUESCOPE PRIMA-R TM MAJU BLUESCOPE COOLZAL® PLUS Zincalume® TrueCore Retail BLUESCOPE BLUESCOPE Zacs Zacs Natural BLUESCOPE Zacs Manufacturing clean Col rbond Zincalume® BLUESCOPE#1616 PrimaMaju™ PrimaMaju™ is an economical painted alternative for the industrial and commercial market and consists of a substrate of AZ100 (100g/m2) coating with a finish coat (17μm) and backing coat (5μm) Finish Coat (Nominal 14μm) Corrosion Inhibitive Primer (Nominal 3um) Conversion Coating 55% Al-Zn alloy-coated steel Substrate Conversion Coating Backing Coat (Prima Backer, Nominal 5μm) MUARA RIMBA TANAMERA CENDANA KEKABU AWANA BLUESCOPE#1717 Clean ColorbondⓇ and PrimaMaju TM versus Painted Galvanised Application Substrate - type - coating class - coating thickness Paint clean Col bond Developed for exterior building profiles in applications requiring high paint durability, excellent corrosion resistance and superior dirt resistance performance ZINCALUMEⓇ (55% Al-Zn) AZ150 (150g/m²) ~0.050 mm (Both surfaces) Custom formulated super polyester with high quality pigment with Thermatech® technology and clean properties to resist staining and discolouration >1km from marine BLUESCOPE PRIMA-R TM MAJU Developed for economical exterior building profiles in applications requiring corrosion resistance and paint performance compared to Painted Galvanised 55% Al-Zn AZ100 (100g/m²) ~0.030 mm (Both surfaces) Custom formulated polyester with organic/inorganic pigment to suit high UV/temperature environment Painted Galvanised Generic prepainted steel for roofing and walling profiles with lower corrosion resistance and paint performance Zinc Coated Z180 (180g/m2) or lower ~0.030 mm (Both surface) Generic resin system - minimum color performance against color fading and chalking Warranty Perforation by corrosion Paint peel and flake Color fading Dirt staining 25 years >1km from marine 15 years 10 years >1km from marine ? ? 15 years ? 5 years 10 years ? N/A 5 years BLUESCOPE#1818 Expanding painted capacity (1/2) . . NS BlueScope Malaysia is currently commissioning its newly installed in-line painting (ILP) capacity - An extension to the metal coating line that allows continuous production of painted product - Adds ~30kt of painting capacity Designed to support retail volume growth and overall business profitability - ILP produces retail painted product, freeing capacity on the continuous paint line - Potential for higher painted mix - Potential for cost-down on painted product • New ILP technology • Commercial product expected before end FY2015 BLUESCOPE#1919 Expanding painted capacity (2/2) Level 1 and Paint Coater Level 2 and Resin Coater Below Induction Oven Zone 1, 2 and 3 and ducting BLUESCOPE#20BLUESCOPE KOLEJ RAFFLESIA LYSAGHT#2121 Lysaght in Malaysia, Singapore and Brunei NS BlueScope Lysaght Sabah ENANG NS BlueScope Lysaght Malaysia NS BlueScope Lysaght Singapore PAHANDI ITROGHT NS BlueScope Lysaght Brunei SABAH NS BlueScope Lysaght Sarawak BLUESCOLE agh SINGAPORE . Six Lysaght sites: four in Malaysia, one in Singapore and one in Brunei First operation opened in 1965 - 50 years of history ⚫ 270 employees Manufacturing Facility Sales Office BLUESCOPE#22Products LYSAGHT KLIP-LOK® ОРТІМАТМ LYSAGHT SPANDEKⓇ OPTIMA TM LYSAGHT® TRIMDEK® OPTIMA TM LYSAGHT® CRIMP CURVED TRIMDEKⓇ OPTIMATM PERBADANAN PUTRAJAYA COMPLEX, PUTRAJAYA BUNGALOWS & CONDOMINIUM, VILLA AMAN KIARA, KUALA LUMPUR BOH TEA CENTRE, CAMERON HIGHLANDS OFFICE & SHOW GALLERY, PJ (AS BASE SUBSTRATE FOR ALUMINIUM COMPOSITE PANELS) LYSAGHT® STANDING SEAM SYSTEM 22 22 LYSAGHT® SMARTRUSS SYSTEM LYSAGHT® BONDEK II UNIVERSITY DARUL IMAN - LAMAN SELERA @ TERENGGANU MULTI PURPOSE HALL for AKADEMI GABUNGAN PELAJAR SEMENANJUNG, BUKIT RAKIT, KT for JKR SMARTRUSS BLUESCOPE#23BLUESCOPE LLL BUSINESS PERFORMANCE#2424 Total sales volume Total sales volume (kt) 167.9 168.6 159.1 156.6 152.2 FY2010 FY2011 FY2012 FY2013 FY2014 · Volumes have remained robust - Continuous paint line capacity has been a limiting factor - In-line painting to address this capacity constraint . Some moderation in sales volume at Lysaght but trend has begun to reverse BLUESCOPE#2525 Underlying EBIT Underlying EBIT (MYR M) . Consistent EBIT 91.1 90.1 87.5 83.5 86.2 FY2010 FY2011 FY2012 FY2013 FY2014 performance and favourable trend, despite being capacity constrained • Growth initiatives - In-line painting - New products and product mix BLUESCOPE#26BLUESCOPE SUMMARY#2727 Summary . • • • Strong safety record Comprehensive and long-established presence in Malaysia, Singapore and Brunei Leading brands and products Expanding painted capacity to support retail volume growth and profitability Strong and consistent business performance BLUESCOPE#289265 BLUESCOPE Investors' Visit to ASEAN Sites - May 2015 Pack 4: NS BlueScope Malaysia, Singapore and Brunei Pongsak Padungkarn, President - Malaysia, Singapore & Brunei Nathan Antonucci, VP Commercial – Malaysia, Singapore & Brunei May 2015 BlueScope Steel Limited. ASX Code: BSL