2nd Annual Goldman Sachs JB Were Australasian Investment Forum, New YorkKirby Adams, Managing Director and Chief Executive OfficerMarch, 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

Our Bond – What we value

• Our customers are our partners

• Our people are our strength

• Our shareholders are our foundations

• Our communities are our homes

Page 5

Our Customers – serving them in over 20 countries

• Over 30,000 customers using BlueScope Steel products with confidence

Australia34%

New Zealand/Pacific4%

Asia8%

Asia14%

North America-NSBSS + C&BPNA16%

Americas21%

Europe/Africa3%

Exports38%

PRODUCT OFFER

• Services

• Solutions

• Technical support

• Warranty

• Just In Time Delivery

• Transport & Logistics

• Design / Build / Install

• Information systems- web based- connectivity

PEB/Roll formed28%

Slab9%

HRC23%

Plate6%CRC

3%Metal Coated18%

Painted13%

Global Product Mix($ Revenue)

First Half FY06

Geographic markets (tonnes by destination)

First Half FY06

Indicative3.545 million tonnes

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 0.9

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 20061H

Injur

ies re

sultin

g in l

ost ti

me pe

r milli

on m

an-h

ours

worke

d

** Includes Butler performance from May 2004

Medically Treated Injury Frequency RateLost Time Injury Frequency Rate

17,500 Employees, 75 manufacturing sites, 17 countries

52.247.1

29.122.4 21.9

12.2 9.3 9.2 7.0

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 20061H

Medic

ally t

reate

d inju

ries p

er m

illion

man

-hou

rs wo

rked

* Includes Butler performance from May 2004

Reported performance for IISI member companies

Page 7

Our shareholders – continuing to reward shareholders as we grow

• Share Buybacks – Public Listing to 31 December 2005- Purchased and cancelled 113m shares

* on market – 87m shares* off market – 26m shares

• Dividends - All Fully Franked

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

• Share buybacks $ 687m• Dividends paid $ 970m• Interim dividend

(to be paid April 06) $ 140m$ 1,797m

$2.39 share or 77% payout ratio

9 13 1218 18

24 207

10

20

05

101520253035404550

FY2003-1H

FY2003-2H

FY2004-1H

FY2004-2H

FY2005-1H

FY2005-2H

FY2006-1H

¢

¢¢

Cent

s Per

Sha

re

¢

29¢

40¢

¢

¢

¢

SpecialOrdinary:- Interim- Final

62¢

¢

¢ ¢

Page 8

Unique and valuable franchise in world’s largest and fastest growing markets

IndonesiaMC 100kt +205kt

Painting 50kt +75kt

Western PortHot Rolling 1.43mtCold Rolling 1.0mt

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

BrisbanePainting 88kt

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

MC 230kt +Painting 60kt

Hollow Sections 45ktPacific BlueScope Buildings

sites 3

VietnamMC 125kt

Painting 50kt

ChinaMC 250kt

Painting 150kt3 Butler PEB

SydneyPainting (1 line) 120 kt

• Coated and Building Products North America

• North Star JVHot Rolling 1.80mt (100%)

• Castrip JV

Asia & China20 BlueScope Buildings Sites

India50:50 JV with Tata

SteelMC 250kt

Painting 150kt2 BlueScope

Buildings sites1 Butler PEB

Port Kembla / SpringhillRaw Steel 5.1mt

Hot Rolling 2.4mt +400ktPlate 360kt

Cold Rolling 1,180kt Tinplate/Black plate 200kt

MC (3 lines) 750kt +PL (2 lines) 207kt +

ThailandCold Rolling 300kt

MC 375kt Painting 90kt

PEB

MalaysiaMC 160kt

Painting 70kt

Australia7 Service Centres

34 BlueScope Buildings sites

7 BlueScope Water

Page 9

Upstream – Steel Making

Capability Products StatisticsSlab • Raw steel capacity (mtpa)

- PKSW 5.1- NZS 0.6- NS (50%) 0.9

6.6

• Cost curve (HRC)- PKSW & NZS - lowest quartile- NS - most efficient EAF

• Turnover (1H-06)- PKSW A$1,900m- NS (50%) US$243m

• Customers- Internal mid-stream- Pipe & Tube- Fabrication / manufacturing- Ship building (Korea)- Distribution

• Markets- Australia, NZ, Americas, Asia

Port Kembla Steelworks

NSW, Australia

Hot Rolled Coil

New Zealand Steel

Plate

North Star BlueScopeOhio, USA

Page 10

Midstream – Metallic Coating and Coil Coating Network

Capability Products Statistics

• Capacity (ktpa) growing

• Asia FY05 FY09- Cold Rolled Coil 300 300+- Metallic Coating 430 1,460- Painting 210 635

• Australia- Cold Rolled Coil 1,930 2,180- Metallic Coating 1,580 1,580- Painting 625 745

• NZ- Cold Rolled Coil 360 360- Metallic Coating 230 230- Painting 60 60

• Feed source of Hot Rolled Coil and Cold Rolled Coil- Asia – local suppliers and internal- Australia & NZ – internal

• Customers- Principally construction, manufacturing & auto

• Markets- “In market” local supplier- + exports

COLORBOND®

ZINCALUME®

CLEAN COLORBOND®

GALVASPAN®

Australia:- Western Port, Vic- Illawarra Coated

Products, NSW- Queensland

- Sydney

New Zealand

Asia:- India JV (Tata)

- Indonesia- Malaysia- Thailand- Vietnam- China

Research & Development

Technical Support

Page 11

Downstream - Metal Building Products and Solutions

Capability Products Statistics

• Market leader in- Australia- China- South East Asia- USA (PEB)

• Feed- Australia - internal- Asia - internal- NZ – internal- NA – external / internal

• Customers- Principally construction sector

• Markets- “In market” local supplier- Branded products- Supply, install and fix

Butler Pre-Engineered Buildings (PEB)

BlueScope Water

Lysaght roll formed steel components

Australia

New Zealand & Pacific

Asia

North America

Page 12

Current and expected market conditions confirm our strategic direction

Downstream

Midstream

Upstream

FUTURE GROWTH PROJECTSFY2007 - 2009FY2006–2H

Australia- 400kt HSM expansion (1Qtr 07)- BF No. 5 reline (expected FY08)

New Zealand Steel- Front end study underwayUSA- North Star BlueScope new bag house- Castrip

Australia- 120kt Colorbond® plant start up (1H-CY07)China- 250kt Metal Coating and 150kt Paint

lines start up (1Q-FY07 & 2H-FY06 respectively)

India- 250kt Metal Coating & 150kt Paint

lines start up (mid CY08)Indonesia- 205kt Metal Coating & 75kt Paint

lines start up (early CY08)

Vietnam- Ramp-up 125kt Metal Coating and 50kt

Paint LinesThailand- Ramp-up 200kt Metal Coating

expansion

India- New PEB and Lysaght plants openChina- New PEB and Lysaght plants open

Australia- Water and new building productsThailand- First pre-engineered building (PEB)China- New panels, residential plants and new

beam facility

Page 13

Pricing over the cycle

Indicative

Time

Selli

ng P

rice

$

PEBPaintZALGalvCRCHRCSlab

Page 14

FY2006FY2006IN REVIEWIN REVIEW

Page 15

Our record since public listing – Revenue & EBITDA

0400800

1,2001,6002,0002,4002,8003,2003,6004,0004,400

1H-03 2H-03 1H-04 2H-04 1H-05 2H-05 1H-060100200300400500600700800900100011001200

Revenue EBITDA

EBIT

DA (A

$ Milli

ons)

Reve

nue (

A$ B

illion

s)

Despatches (net) 3.35 3.41 3.24 3.69 3.46 3.70 3.55Revenue (A$m) 2,590(1) 2,712(1) 2,619(1) 3,151(1) 3,881 4,084 3,892 EBITDA (A$m) 464(1) 417(1) 440 (1) 665(1) 837 818 593

(1) AGAAP

Page 16

Calendar Year Earnings

A$ Millions CY2003 CY2004(2) CY2005

Revenue 5,328 7,029 7,980

EBITDA(1) 857 1,501 1,411

EBIT(1) 581 1,212 1,111

Net Profit 436 859 792

EPS (¢) 56 116 110

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

Page 17

Group headlines First Half FY2006 vs. First Half FY2005

• Revenue A$3,892 million Constant

• External despatches 3.5 million metric tonnes Up 3%

• EBITDA A$593 million Down 29%

• EBIT A$449 million Down 35%

• NPAT A$312 million Down 38%

• EPS 44¢ Down from 68¢

• After tax Return on Invested Capital 14.6% Down from 27%

• After tax Return on Equity 18.9% Down from 32%

• Net operating Cashflow - after capital / investments ($19 million) Down 108% - before capital $347million Down 33%

• Interim Ordinary Dividend 20¢ per share Increased 2¢ per share (11%)(fully franked)

• Gearing (net debt) 33.2% 22.2% (June 05) – including SOR

Page 18

+5

Coated and Building Products Asia – unexpected market weakness

Markets> Lower despatches / weaker markets > Heightened import competition> Customers high inventories / destocking> China – credit controls delayed projects

Performance• First half

> higher feed costs fully utilised in half> +$11m in pre-operating and business

development costs vs. 1H-05 (gross $18m)> unfavourable FX - A$ stronger > growth projects on schedule, apart from

China metal coating line (+1-3 months)• Second half

> improving margins, higher production and increased sales volumes

> competitive market offers> project delivery / start-up

45 37

-4-20

0

20

40

60

80

100

120

FY05-1H FY05-2H FY06-1H

EBIT

A$ M

illion

s

BlueScope Butler

9 8

• Sales revenue down 7% to A$485m, including A$117m from BlueScope Butler China

• 1H-FY2006 return on net assets annualised (pre-tax) (1%)

Page 19

Continued GDP growth expected in South East Asia

GDP - Malaysia

-12

-8

-4

0

4

8

12

95 96 97 98 99 00 01 02 03 04 05e 06 07

Annu

al %

Cha

nge

ConsensusEIUIMA Asia

F’cast

Foreign Direct Investment[Thailand, Malaysia, Indonesia, and Vietnam]

0

2

4

6

8

10

12

01 02 03 04 05e 06 07 08 09 10

US$b

illio

n

F’cast

GDP - Thailand

-12

-8

-4

0

4

8

12

95 96 97 98 99 00 01 02 03 04 05e 06 07

Annu

al %

Cha

nge

ConsensusEIUIMA Asia

F’cast

GDP - Indonesia and Vietnam

-12

-8

-4

0

4

8

12

95 96 97 98 99 00 01 02 03 04 05e 06 07

Annu

al %

Cha

nge

ConsensusEIUIMA Asia

F’cast

Source: EIU, Consensus Economics, IMA Asia, BSL EconomicsNotes: All charts include calendar year data

Vietnam

Indonesia

Page 20

China and India expected to maintain strong growth momentum

GDP

0

2

4

6

8

10

12

95 96 97 98 99 00 01 02 03 04 05e 06 07

Annu

al %

Cha

nge

ConsensusEIUIMA Asia

Source: EIU, Consensus Economics, IMA Asia, BSL EconomicsNotes: All charts include calendar year data

China

India

F’cast

Industrial Production

0

5

10

15

20

25

30

95 96 97 98 99 00 01 02 03 04 05e 06 07

Annu

al %

Cha

nge

ConsensusEIU

China

India

F’cast

Gross Fixed Investment

0

4

8

12

16

20

24

95 96 97 98 99 00 01 02 03 04 05e 06 07

Annu

al %

Cha

nge

ConsensusEIUIMA Asia

China

India

F’cast

Foreign Direct Investment

0

10

20

30

40

50

60

01 02 03 04 05e 06 07

US$b

illio

n

0

2

4

6

8

10

12

EIU

China (LHS)

India (RHS)

F’cast

Page 21

Our Asian Coating / Painting / Roll-Forming / PEB Capacity to Triple

By Region

430

210

1460

635

0200400600800

1000120014001600

FY2005 FY2006 FY2007 FY2008 FY2009

Metal Coating Painting

(k to

nnes

)

x 3.4

x 3.0

Page 22

Coated & Building Products Australia – Challenged again

Markets> Lower production & export volumes due to Western Port fire> Lower domestic demand for Australian canned goods > Lower domestic demand in manufacturing and

distribution for “bare” galvanised > Increased “bare” product import offers > Strong domestic demand for higher quality construction

products> Higher domestic prices50

100

150

200

250

Milli

ons

• Sales revenue of A$1,429m, down 5%

• 1H-FY2006 return on net assets annualised (pre-tax) (5%)

* Excludes Packaging Products impairment write-down of $82million

-84

-15 -30

-150

-100

-50

0

FY05-1H FY05-2H FY06-1H

EBIT

A$

Performance• First half

> significantly higher feed costs (HRC & slab)> Western Port HSM fire August 2005 reduced production

capacity – fully operational November 2005> Higher zinc and aluminium costs> Increased metal coating and paint capacity> Western Sydney Colorbond® Centre on schedule

• Second half> Improved sales and production> More competitive market offers> Lower “bare” product prices

*

Page 23

Coated and Building Products North America – Back in the black

Markets> Improved non-residential market but not as strong

as the previous corresponding period> Good order bookings leading into the second halfPerformance• First half

> Overall continued improvement> Buildings

- Jackson Tennessee specialty plant into full production

- But, despatches down 7.5% due to delayed start-up

- Sold Galesburg, Illinois facility> Vistawall

- Tennessee extrusion expansion completed- Weekly order intake ($ terms) up 21%- Cost increases – aluminium and energy

• Second half> Continued improvement

1

-19

2

-30

-20

-10

0

10

20

30

FY05-1H FY05-2H FY06-1H

EBIT

A$ M

illion

s

• Sales revenue = A$607m down 4%

• 1H – FY2006 return on net assets annualised (pre-tax) 1%

Page 24

New Zealand and Pacific Steel Products – still delivering

Performance• First half

> Higher costs, including maintenance, unit costs and coal / electricity

> Paint line production up due to FY05 upgrade> Regrettably had a fatality in July> Front end studies underway – steel make and

iron sands conversion• Second half

> Lower steel prices> Flat sales volumes

93 9666

0

25

50

75

100

125

150

175

200

225

FY05-1H FY05-2H FY06-1H

EBIT

A$ M

illion

s

• Sales revenue down 8% to A$359m

Markets> Lower domestic sales (softer residential) > Higher domestic prices> Lower prices on export HRC sales> Higher average vanadium prices

• 1H-FY2006 return on net assets annualised (pre-tax) 42%

Page 25

Hot Rolled Products – excellence across the board

698 653479

0

200

400

600

800

1000

1200

1400

FY05-1H FY05-2H FY06-1H

Performance• First half

> Dramatically higher iron ore and coal costs, partly offset by lower priced iron ore inventory

> Excellent operations / marketing effort post Western Port fire

> Record 6 month iron make and slab production> Enterprise Bargaining Agreement extended

to 2009> PKSW Hot Strip Mill expansion on schedule> North Star BlueScope – record half year

production and paid US$50m (100%) dividend • Second half

> Full impact of 71% higher iron ore costs> Flat steel volumes; weaker prices overall> More normal product mix; improved market offer

• 1H-FY2006 return on net assets annualised (pre-tax) 44%

EBIT

A$ M

illion

s 104

North Star BlueScope Steel

Port Kembla Steelworks

90

• PKSW sales revenue up 2% to A$1,900m

• NSBSS revenue US$243m (50%), down 17%

Markets> Increased export (principally slab) sales> Higher domestic prices; lower export prices> Strong USA HRC price / scrap spread

62

Page 26

Earnings guidance for FY2006 – implies a more challenging second half

Downstream

Midstream

Upstream

FY2006 – 2H vs. 1H

• Full affect of higher iron ore (PKSW)• Scrap – free market linked to HRC• Further softening in Asian export steel prices • Flat sales volumes• More normal product / geographical mix

Australia• Improved sales & production • Displace imports• Lower “bare” product pricesAsia• Improved margins• Higher production & sales volumes• Competition • Vietnam project start up

• Lower “bare” feed costs• Higher sales volumes• Greater competition

• FY2006 after tax earnings outlook now expected to be in the range of A$0.65 – $0.75 EPS on an AIFRS basis

Page 27

Global steel industry currently squeezed by China’s increased steel making capacity and higher raw material costs

15

20

25

30

35

40

45

50

55

87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

US$ / DMT. Lump iron ore indicative of all iron ore types. JSM Benchmark Pricing.

Lump Iron Ore Extreme Deviation

0

50

100

150

200

250

Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

Japan to Korea HRC US Midw est HRC Latin America SlabUS$ / Tonne. Indexed, Jan 98 = 100. (CRU)

Raw Steel Prices

Sources: IISI, BSL Research

93 95 101 109 115 124 127151

182

222

280

349

0

50

100

150

200

250

300

350

400

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

China Crude Steel Production

Millio

n to

nnes

Page 28

World crude steel production - 1950 to 2004

0

200

400

600

800

1000

1200

1950 1960 1970 1980 1990 2000

Millio

n To

nnes

6.0%

3.1%

0.3%

4.0%Average Annual Growth Rates

Source: IISI

Page 29

Global steel industry – our long term view has not changed

Current industry issues:

• China’s capacity growth / fragmentation

• Lower Asian steel prices

• Higher raw material costs

• Scrap / iron ore differential

• Higher energy and other costs

• Increased competition

Rest of steel world

• Continued discipline

Likely industry outcomes long term:

• China – steel reform initiatives taken / exports discouraged

• China – increased demand / steel displaces inter-material

• Prices improve and then stabilise

• Raw material costs moderate

• Other costs remain high

• Competition BUT on increased demand

• Expansion programs being re-evaluated

• Continued industry consolidation

• India – increased steel requirements (3 - 5 years)

Page 30

Questions and Answers

Dynamic Global Steel

Market

Dynamic Global Steel

Market

Profitable Through the

Cycle

Profitable Through the

Cycle

Geographic and Product

Diversity

Geographic and Product

Diversity

Strong and Flexible Capital

Structure

Strong and Flexible Capital

Structure

Consistently Strong Cash

Flows

Consistently Strong Cash

Flows

Strong Board & Management

Team

Strong Board & Management

Team

Value Added Branded Products

Value Added Branded Products

Growth Opportunities in

Asia

Growth Opportunities in

Asia

Low Cost Producer

Low Cost Producer

Strong Operating

Track Record

Strong Operating

Track Record

A VERY DIFFERENT KIND OF STEEL

COMPANY

2nd Annual Goldman Sachs JB Were Australasian Investment Forum, New YorkKirby Adams, Managing Director and Chief Executive OfficerMarch, 2006

ASX Code: BSL