Arrium Limited “Transformation – scale and diversity”

Andrew RobertsManaging Director & CEOMacquarie Australia Conference 8 May 2014

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Contents

2

Overview 3

Business Segments 7

1H14 Financial Overview 24

2H14 Update 28

Appendix 39

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Overview

3

An international diversified mining and materials company

Business segments: Mining Mining Consumables Steel

Revenue1 $6.8bn (FY13) ~10,000 employees S&P/ASX top100

Loading the MV Tian Fa Hai - largest vessel loaded by Arrium (~200kt, April 14)

1 Includes continuing and discontinued operations.

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Creation and listing of OneSteel

Project Magnet

Smorgon Acquisition

Moly-CopAcquisition

Mining business doubled

› A domestic steel manufacturer and distributor

› Steelworks converted to magnetite feed

› Creation of new export iron ore business – 4mtpa x 10 years

› Domestic steel consolidation

› Australasian and US Grinding Media business

› Recycling

› Grinding media expansion - North and South America

› Became largest grinding media producer in world (previously No. 2)

› Doubled export iron ore sales from ~6mtpa to ~12mtpa

› Port capacity doubled to ~13mtpa

Building scale and diversity

“Our strategic focus has been diversification into the international resource sector”

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FY13 Assets$8.6bn

Source of income3FY13 EBITDA2$0.6bn

$2.6bn

$0.3bn

Building scale and diversity

“We have transformed from a domestic steel business to an international mining and materials company with scale”

1 Includes sales and other revenue/income from external customers. Excludes income and assets attributable to Arrium’s interest in Steel & Tube New Zealand .2 Underlying results from total operations. Includes continuing and discontinued operations. A reconciliation of non-statutory underlying results to statutory results can be found in the Appendix to this presentation.3 Source of income based on 1H14 financial results.

FY041

Steel, Australia

100%

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Current Longer term

Mining

• Utilise full capacity of Port• Conversion of hematite resource to

reserve• Increased exploration program

• Magnetite opportunities• Non ferrous• Whyalla Port

Mining Consumables

• Capture share of grinding media growth• Maintain stable margins• Expand capacity ahead of market• Roll out next generation SAG ball

• Geographic expansion• Product expansion

Steel and Recycling

• Integrated long products supply chain• Ongoing cost and operational

improvements• Rationalise Recycling footprint to align

with steelmaking

• Deliver acceptable earnings and cash through cycle

Strategic focus

“Continue to grow Mining and Mining Consumables and deliver acceptable returns in Steel and Recycling”

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FY13$m

Revenue 977EBITDA 340Assets 2,159Employees 571

FY13$m

Revenue 1,567EBITDA 197Assets 2,460Employees 2,031

FY133

$mRevenue 4,835EBITDA 83Assets 2,985Employees 6,795

Business segments1,2

1 FY13 numbers from Full Year Financial Report 2013. They exclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013.2 Underlying results from total operations. Includes continuing and discontinued operations. A reconciliation of non-statutory underlying results to statutory results can be found in the Appendix to this presentation.3 Arrium Steel FY13 information has been derived by adding together the Steel and Recycling segments. Transactions between these segments have not been eliminated.

- Moly-Cop

- AltaSteel

- Steel

- Recycling

- Middleback Ranges

- Southern Iron

- Whyalla Port

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Mining

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Arrium Mining

9

“South Australia’s leading iron ore producer”

Attractive quality blended export hematite ore products

Leader in magnetite ore and processing

Attractive mining leases• Ferrous

• Non ferrous

Infrastructure largely owned including Whyalla Port• Only bulk port in Spencer Gulf

Track record of delivering large scale projects per plan

Iron Knob, SA

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Arrium Mining

10

Completed expansion to double iron ore sales and capacity of Whyalla Port mid 2013• Export hematite sales ~12mtpa

- Further sales growth targeted

• Whyalla Port capacity ~13mtpa- Opportunities for further expansion

Two operations – MiddlebackRanges and Southern Iron

Products: Whyalla Blend / Opal Blend (average grade 60% Fe)

Tailored customer base (~70% contract, ~30% spot)• Predominantly China

“Hematite export iron ore sales doubled to ~12mtpa”

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Arrium Mining

111 Includes mining, crushing, beneficiation, road haulage and transhipping costs. Excludes capitalised costs (infrastructure, pre-stripping and mining licences) and depreciation, amortisation charges in respect of those costs, royalties, sales and marketing and corporate costs.2 Includes loaded cash cost, royalties, sales and marketing and corporate costs, adjustment for moisture content and freight.

Loaded cash cost1 ~ A$50/wmt Ability to manage volumes relative to market scenarios

“We have a competitive cost base with operational flexibility”

0

20

40

60

80

100

120

140

US

D/d

mt

Total Cash Cost2

18mt 8mt

2mt

10mt

12mt

16mt42mt 5mt150mt

10mt

212mt 290mt

12mt298mt

Based on UBS estimates, “Breakeven price for global iron ore producers” Mar 2014

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Arrium Mining

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“We have a good basis for sales longevity”

Existing reserves

Beneficiation• Two beneficiation plants (converts

~4mt of LGO to ~2mt of HGO p.a.)

Conversion of hematite resource to reserves• History of replacing reserve depletions

• Focus now on accelerating conversion

Blasting at Middleback Ranges

New Inner Harbour Export Facility Shed

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Arrium Mining

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We have the people, skills and history of• Delivering large scale projects

• Sweating our supply chain to increase volumes

Ferrous exploration (hematite and magnetite) • Middleback Ranges

- Brownfield and greenfield

- Recently received indigenous clearance for new prospective areas

• Southern Iron- Peculiar Knob

- Hawks Nest

“We are well positioned to extract the value from our attractive leases and infrastructure”

Exploration & Mining Target Areas within the ILUA Agreement Area

New prospective areas (via ILUA)

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Mining Consumables

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Mining Consumables

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Strong earnings growth post Moly-Cop acquisition

Strong cash generator after funding own growth

Global leader in grinding media

Leading market positions in key growth areas of North America, South America and Australasia

Quality customer base

Estimated grinding media demand growth in North and South America ~ 8% CAGR FY13 –FY171 – project delays may impact timing • Good visibility of new projects and mine expansions

• Grinding media consumption driven by:- Copper, gold and iron ore processing rates

- Declining mineral head grades

“A growth business of scale, with stable margins and a sustainable competitive advantage”

1 Review conducted August 2013, next review due August 20142 Other includes rail wheels & ropes and AltaSteel

EBITDA

2

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Sustainable competitive advantage

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“Delivered through combination of superior ball quality, supply chain, technical support and capacity advantages”

Superior quality and product performance• Performance including wear rates helps

reduce cost

• Proprietary metallurgical and engineering know how

• Next generation SAG ball being rolled out

Superior supply chain – certainty of supply• Located close to customers

• Fast response times minimises risk of interruptions to operations

• Global customers benefit from our global network

Lima, Peru

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Sustainable competitive advantage

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Unparalleled technical support

• Recognised for our extensive technical expertise (mill processing experts)

• Tailored customer support

Capacity advantages

• Investing in new capacity ‘ahead of market’ and close to customers

• Installed capacity ~3.5x larger than next largest competitor

“Delivered through combination of superior ball quality, supply chain, technical support and capacity advantages”

Lima, Peru

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Arequipa, Peru

Santiago, Regional Office

Talcahuano, Chile

El-Salto, Mexico

Kamloops, Canada

Lima, Peru

Mejillones, Chile

Kansas City, USA

Edmonton, Canada(AltaSteel)

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Grinding media capacityAmericas

Newcastle, Australia(Grinding Media, Ropes, Rail Wheels)

Cilegon, Indonesia

Australasia

Moly-CopGrinding media facilities FY13 Capacity CapacityNewcastle, Australia 250 250Cilegon, Indonesia 30 50 (currently commissioning) 80Kansas City, USA 180 180Talcahuano & Mejillones, Chile 430 430Lima & Arequipa, Peru 115 40 (completed 1H14) 155El Salto, Mexico 170 170Kamloops, Canada 115 120 (completion mid 2015) 235Total 1,290 210 1,500

Expansion

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Steel

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Arrium Steel

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Integrated operation• Scrap/iron ore → Manufacturing → Retail

Leading market positions in Australia• Only manufacturer of steel long products• #1 in general steel retail/distribution• #1 in reinforcing steel• #1 in wire

Production flexibility with integrated (blast furnace) and electric arc furnace technology

Australian and Asian recycling businesses• Ferrous and non ferrous businesses

“Integrated operation in Australia with leading market positions, flexibility and significant leverage”

Barangaroo Development Sydney, NSW

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Steelmaking facilities Capacity1

ktpa

Sydney Steel Mills EAF ~ 630

Laverton Steel Mills EAF ~ 700

Whyalla Steelworks Blast Furnace ~ 1,200

Total ~ 2,530

21

AsiaAustralia

1 Demonstrated capacities, assuming 24 hours 7 days operation

Arrium Steel

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Arrium Steel

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Returned to EBITDA/cash positive following significant loss position post GFC

• Cost reduction and operational improvements

Focus on continuing to lower ‘breakeven point’

1 Steel historical information (FY13 & earlier) has been derived by adding together the Manufacturing & Distribution segments. Transactions between these segments have not been eliminated.

“Historically a strong contributor to earnings and cash”

76 66

-

188

500

423 419

370 349

317

-

100

200

300

400

500

600

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 FY04

Steel EBITDA History1,2,3

EBITDA $m Employees (number)

(37)

EB

ITD

A $

m

Em

ploy

ees

(num

ber)

2 Steel information for 2013, 2012 & 2011 excludes transactions between entities previously in the Manufacturing and Distribution segments and excludes discontinued operations.3 Underlying results from total operations. Includes continuing and discontinued operations. A reconciliation of non-statutory underlying results to statutory results can be found in the Appendix to this presentation.

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Arrium Steel

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Significant leverage to an increase in volumes

• Low capacity utilisation (EAFs ~ 60%)

- First additional 150kt from existing shifts

Significant leverage to a sustained lower AUD/USD

• 1c = ~$10m EBIT impact (annualised)1

1 As at 1H14 – indicative Group indirect impact on continuing businesses. Assumes constant raw material prices and demand levels.

“Historically a strong contributor to earnings and cash”

Steel fixer at Barangaroo Development, Sydney NSW

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1H14 Financial Overview

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1H14 Financial Overview

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Record EBITDA• Underlying1 EBITDA $503 million – up 97% pcp

(Statutory EBITDA $499 million)- Record contribution from Mining- Strong earnings and cash from Mining

Consumables- Steel EBITDA and cash positive

Underlying NPAT $201 million, up 294% pcp(Statutory NPAT $220 million)

Record cash outcome• Operating cash flow $344 million – up 97% pcp

“Realising benefits of growth investments in Mining and Mining Consumables”

1 Underlying results from total operations. Includes continuing and discontinued operations. A reconciliation of non-statutory underlying results to statutory results can be found in the Appendix to this presentation.

CSL Whyalla at Whyalla Port, SA

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1H14 Financial Overview

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Net debt $1,975 million – down from $2,115 million end FY2013 Gearing 33.8% – down 2.9pp from end FY2013, well within bank covenants Leverage ratio1 2.3x (CY13) – substantial improvement from 3.6x (CY12)

“Good progress with current priority of reducing debt and improving leverage ratio”

Leverage ratio

Smorgon acquisition Moly-Cop

acquisition (USD/AUD

FX~1.02)

(USD/AUD FX~0.89)

Southern Iron / Whyalla Port investments(USD/AUD FX~1.01)

1 Net Debt / underlying EBITDA, 12-month rolling basis

Leverage ratio historically generally below 2x other than when significant growth investments made

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1H14 Financial Overview

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Total facilities A$3.6 billion1

Well progressed refinancing next significant maturity (FY16)

Average interest rate for total drawn and undrawn funding ~ 4%

Covenants include gearing ratio >50%, and interest cover of between 3.0 to 3.5 times

“$1.4 billion available undrawn facilities1”

1 At end 1H14

0

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1,000

1,100

1,200

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY2019+AU

D m

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Facility Maturity Profile

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2H14 Update

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2H14 Update

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Expanded operations performing well

• March quarter sales up 54% to 3.03Mt (1.97Mt pcp) despite some significant adverse weather

- Benefit of supply chain flexibility

• YTD to Mar 2014 sales up 70% to 9.2Mt (5.4Mt pcp)

• FY14 sales expected to be 12.3Mt –12.6Mt (target was12Mt)

Expect to be at 13Mtpa run rate in Q1 FY15

Mining operation at Iron Knob area progressing to plan

Mining

New high capacity ship loader at Whyalla Port, SA

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2H14 Update

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Average loaded cash cost for March quarter ~A$47/wmt1

Average realised CFR price for March quarter ~US$110/dmt (~A$123/dmt) –92% recovery against Platts 62% Fe index

Average realised FOB price for March quarter US$95/dmt (A$106/dmt)

Mining

1 Includes mining, crushing, beneficiation, road haulage and transhipping costs. Excludes capitalised costs (infrastructure, pre-stripping and mining licences) and depreciation, amortisation charge in respect of those costs, royalties, sales and marketing and corporate costs.

Loaded iron ore railcars from Southern Iron to Whyalla, SA

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2H14 Update

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Continued strong demand and stable margins for grinding media in North and South America

Capacity expansions tracking to plan

• Lima, Peru completed ramp up in 1H and performing well

• Kamloops, Canada on track for completion mid 2015

• Cilegon, Indonesia expansion on time and budget

- Commissioning March 14 quarter

- Operational handover June 14 quarter

Mining Consumables

1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14F

Sales Volumes EBITDA/t

North and South America1

Grinding Media Sales Volumes and Margins

1 Based on Management actual and forecast data

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2H14 Update

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Australasian business being impacted by:• Further weakness in rail wheel sales as miners

continue to focus on costs and cash

- 2H volumes expected to be down ~25% v 1H, ~45% pcp

- Maintaining high share of maintenance wheels

- Lower export sales to South Africa

• Significant reduction in grinding media sales in Indonesia related to impact of mineral value added tax

- Reduced customer production and grinding media demand in 2H14

• Adverse EBITDA impact (2H v 1H) expected to be ~A$15 – 17 million

Mining Consumables

Cilegon, Indonesia

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2H14 Update

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Waratah, Newcastle operations restructured in 2H to ‘right size’ production and cost base for demand

Change in Waratah production requirements:

• New Cilegon, Indonesia facility operational in June 14 quarter

- Prior shortfall in Indonesia capacity met by Waratah

• Lower demand for rail wheels

• Lower steelmaking requirements

Workforce to be reduced by 120 (~20% of total Waratah employees) by June 14

• Labour savings $14m annualised, restructuring cost $15m (FY14)

Mining Consumables

First balls from new Cilegon, Indonesia facility

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2H14 Update

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Steel and Recycling Ongoing weakness in domestic and

international steel markets, but modest improvement in domestic construction as expected

2H14 domestic sales volumes expected to be flat v 1H14 (modest increase sales/day basis)

• Delays to some major projects

- Slower than expected commencements (e.g. Pacific Highway)

- Projects underway (e.g. Barangaroo)

• Higher number of wet weather days

Improved sales volumes expected in FY15

• Increased project construction in NSW and Western Australia

Steel products Whyalla, SA

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2H14 Update

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Steel expected to again be underlying EBITDA and cash positive, but lower than 1H14

• Full impact1 of synergy benefits offset by adverse impact on prices from: - Asian steelmaking over-capacity

- Pressure on international margins over scrap

- AUD volatility

Dumping investigations underway for structural steel (HRS) and rod in coils (combined ~30% total Steel volumes)

Recycling – improvement expected in 2H14 underlying EBITDA v 1H14

• Cost and operational improvements

Steel and Recycling Margin over Scrap - Asian Import Rebar

100

120

140

160

180

200

220

US$/t A$/t

Source: CRU, Tex Report, RBA

0.86

0.88

0.90

0.92

0.94

0.96

0.98AUD:USD exchange rates

Source: RBA

~3 to 4 months lag re impact on domestic prices

1 FY14 of $30 million (annualised $40 million FY15)

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2H14 Update

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Continuing to track well

• Divestment proceeds to date $202 million

• Divestments completed or under contract to date $228 million – in line with FY14 expectation

Examining other business and property portfolio opportunities

Capital expenditure No change to FY14 guidance provided at 1H14

Asset divestments

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Summary

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Invested to deliver significant scale and diversity

Full earnings and cash benefits from recent investments now being realised

Within Mining and Materials business portfolio:

• Mining and Mining Consumables have good organic growth opportunities in short to medium term

• Steel focus on simplified integrated long products operation with lower cost and significant leverage to improved volumes and a sustained lower AUD

Key priority is debt reduction and improved leverage ratio

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Appendix

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Lost Time Injury Frequency Rate (LTIFR)

Per million hours worked

Medical Treatment Injury Frequency Rate (MTIFR)

Per million hours worked

A key element of our Safety effort has been improving our capability to recognise, assess and manage high consequence as well as high frequency risks

29.6

24.5

21.5

15.814.2

12.111.7

8.1

11.3

9.17.4

6.04.5

7.08.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1H14

3.7

3

3.5

1.8

2.6

1.71.6

0.9

1.81.6

1.4

1.91.7

1.31.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1H14

1H14 safety performance

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1 Tonnages for FY08 reported for raw steel production and steel despatches include the SSX businesses as if they were part of the Arrium Group from 1 July 2007. All other production and despatch statistics presented above are actual. Tonnages include Moly-Cop Group from 1 January 2011 only.2 Ore by products include dolomite, centrix, filter cake and pellet chips.3 Includes scrap sales.4 Tonnage comprises of total group operations.

Pre-2005 tonnage info can be found on Arrium's website.

1H14 business tonnageHalf-Year ended 31 December 1H14 1H13 1H12 1H11 1H10 1H09 1H081 1H07 1H06 1H05

mt mt mt mt mt mt mt mt mt mt

Iron OreIron ore lump 2.13 1.42 1.29 1.52 1.50 0.77 1.32 Iron ore fines 3.99 2.00 1.84 1.54 1.68 1.41 0.57 Total lump & fines 6.12 3.42 3.13 3.06 3.18 2.18 1.89

Pellets, other ore and by products2 0.20 0.28 0.19 0.31 0.22 0.36 0.34

RecyclingFerrous - external 0.38 0.40 0.44 0.51 0.36 0.39 0.39 Ferrous - internal 0.40 0.42 0.44 0.47 0.47 0.48 0.38 Total ferrous 0.78 0.82 0.88 0.98 0.83 0.87 0.77 Non-ferrous 0.12 0.12 0.12 0.13 0.08 0.08 0.08 Total Recycling 0.90 0.94 1.00 1.11 0.91 0.95 0.85

DespatchesMining Consumables - external 0.59 0.60 0.55 0.19 0.19 0.17 0.14 Mining Consumables - internal 0.02 0.04 0.05 0.05 0.05 0.02 - Total despatches - Mining Consumables3 0.61 0.64 0.60 0.24 0.24 0.19 0.14 Manufacturing 0.58 0.49 0.57 0.51 0.51 0.60 0.66 0.48 0.46 0.42 Distribution 0.55 0.70 0.72 0.65 0.65 0.81 0.83 0.66 0.64 0.68 Total despatches - Steel 1.13 1.19 1.29 1.16 1.16 1.41 1.49 1.14 1.10 1.11 Total despatches - external 1.72 1.79 1.84 1.35 1.35 1.58 1.63 1.14 1.10 1.11

Raw steel productionWhyalla 0.54 0.58 0.52 0.54 0.56 0.54 0.59 0.59 0.56 0.27 Sydney Steel Mill 0.16 0.17 0.17 0.20 0.21 0.26 0.31 0.28 0.24 0.27 Laverton 0.27 0.28 0.26 0.25 0.26 0.29 0.27 - - - Waratah 0.12 0.13 0.11 0.12 0.11 0.13 0.09 - - - AltaSteel 0.13 0.14 0.15 - - - - - - - Total raw steel production 1.22 1.30 1.21 1.11 1.14 1.23 1.26 0.88 0.80 0.54

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1 Based on impact of USD iron ore sales, translation of overseas earnings (Mining Consumables and Recycling), impact on Recycling Australia’s margins, partially offset by USD purchases of coal and alloys in Steel.2 Indicative indirect impact on continuing businesses. Assumes constant raw material prices and demand levels.3 Based on balances at 31 December 2013.

41

Exposure to movements in AUD vsUSD Direct impact: 1c change in

AUD/USD = ~$16-19 million1 EBIT impact (annualised)

Indirect impact: 1c change in AUD/USD = ~$10 million2 EBIT impact (annualised)

FX sensitivity on gearing3: 5c movement in AUD/USD = ~1% impact on gearing

USD debt acts as natural hedge against FX exposure on USD net assets

• Change in USD debt offset by change in value of USD assets

1H14 Arrium FX exposure

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Steel Domestic Sales by Market Segment

~75% of Steel revenue is driven by construction

Residential, non-residential and engineering construction (inc mining investment) drives demand for reinforcing bar and wire, rod for mesh, structural pipe, HRS and rail

Agriculture drives demand for rural wire, rural posts and rural pipe products

Mining production drives demand for grinding bar which is feed for grinding media

Manufacturing has limited exposure to automotive and manufacturing segments

Steel – key markets

Steel FY13 Volume by Segment

Residential

Non-Residential

Engineering Construction

Manufacturing

Mining Production

Agriculture

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Arrium Mining

Non-ferrous exploration• Prospective for copper/gold

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1H14 financial overview

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1H14 financial overview

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46Pre-2004 results can be found on Arrium's website.

Historical data – profit and loss underlying

1 Dec13 data is from the Half Year 2014 Financial Report and comprise of total operations. The historical data from FY13 and prior are from the Full Year Financial Report 2013,and they exclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013 and comprise of total operations.

Period Ended1 Dec13 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004$m $m $m $m $m $m $m $m $m $m $m

Sales revenue 3,642.5 6,841.0 7,594.5 7,133.0 6,204.6 7,241.5 7,434.3 4,300.6 4,004.6 3,938.5 3,269.2

EBITDA 503.4 589.6 581.0 642.0 617.6 661.2 807.7 436.1 396.7 377.1 324.2

Depreciation, amortisation and impairment (181.0) (273.5) (221.4) (213.5) (203.9) (199.5) (194.9) (96.2) (94.0) (97.5) (87.1)

EBIT 322.4 316.1 359.6 428.5 413.7 461.7 612.8 339.9 302.7 279.6 237.1

Finance costs (62.0) (118.1) (121.1) (101.1) (89.2) (172.2) (159.6) (55.8) (56.7) (53.6) (42.2)

Profit before tax 260.4 198.0 238.5 327.4 324.5 289.5 453.2 284.1 246.0 226.0 194.9

Tax (expense)/benefit (59.3) (27.6) (37.5) (84.8) (81.6) (64.1) (128.0) (74.7) (60.8) (55.4) (53.4)

Non-controlling interests (0.5) (2.1) (5.9) (7.2) (2.3) (10.1) (10.2) (11.9) (13.6) (17.5) (12.4)

Net profit after tax 200.6 168.3 195.1 235.4 240.6 215.3 315.0 197.5 171.6 153.1 129.1

EPS (cents) - weighted average 14.8 12.7 14.6 17.7 18.2 21.2 34.9 34.7 30.5 27.5 19.6

ROFE (%) 11.1% 5.1% 5.6% 7.3% 7.5% 8.4% 11.3% 15.0% 14.5% 13.5% 11.6%

Dividends (cents/share) 6.0 5.0 6.0 10.0 11.0 10.0 21.5 18.5 17.0 13.5 12.0

Reconciliation of underlying NPAT to statutory NPAT:Period Ended1 Dec-13 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

$m $m $m $m $m $m $m $m $m $m $mNet profit after tax - underlying 200.6 168.3 195.1 235.4 240.6 215.3 315.0 197.5 171.6 153.1 129.1 Non-trading items, net of tax- Restructuring costs (3.2) (65.7) (29.8) (6.2) (1.2) (46.8) (58.1) - - - - - Impairment (0.7) (895.3) (125.4) (1.5) - - (12.0) - - 49.7 - - Transaction costs - - (18.7) (13.9) - - - - - - - - Goodw ill amortisation - - - - - - - - - - (21.0)- Tax adjustments and other items 23.7 98.0 36.5 16.5 19.0 61.0 - 9.5 15.9 - 19.8 Net profit after tax - statutory 220.4 (694.7) 57.7 230.3 258.4 229.5 244.9 207.0 187.5 202.8 127.9

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1 Dec13 data is from the Half Year 2014 Financial Report. The historical data from FY13 and prior are from the Full Year Financial Report 2013, and they exclude the impact of any newaccounting standards and interpretations issued but not effective as at 30 June 2013 and have not been restated since June 2013 to reflect changes in the Group’s continuing anddiscontinued businesses in 1H14.2 December 2004 figures have been adjusted to include securitisation

Historical data – key balance sheet items

Pre-2004 results can be found on Arrium's website.

As at1 Dec13 2013 2012 2011 2010 2009 2008 2007 2006 2005 20042

$m $m $m $m $m $m $m $m $m $m $mCash 240.5 438.3 268.1 153.7 83.4 54.9 151.2 59.5 19.6 55.0 54.2 Receivables 613.2 734.1 953.0 924.0 829.3 827.0 1,185.3 640.9 635.4 643.1 487.8 Inventory 1,332.5 1,280.9 1,450.9 1,601.0 1,433.0 1,239.9 1,298.9 836.3 758.9 836.7 704.6 Property, plant and equipment 3,173.3 2,687.4 2,754.6 2,586.0 2,302.3 2,369.0 2,361.1 1,537.1 1,339.7 1,190.9 1,188.2 Intangibles 2,046.2 2,035.1 2,822.0 2,644.1 2,070.0 2,074.6 2,031.3 214.3 220.2 226.7 246.9 Other assets 516.0 1,435.8 682.8 434.5 349.7 367.7 263.7 281.4 165.0 134.7 121.5 TOTAL ASSETS 7,921.7 8,611.6 8,931.4 8,343.3 7,067.7 6,933.1 7,291.5 3,569.5 3,138.8 3,087.1 2,803.2 Interest-bearing liabilities 2,215.9 2,553.2 2,411.4 1,882.1 1,047.1 1,278.8 2,098.4 829.3 658.4 700.3 523.2 Payables 1,031.0 1,098.3 1,054.3 1,022.4 863.1 613.7 1,014.8 635.1 545.4 615.7 569.9 Provisions 555.2 569.3 557.1 508.3 396.8 407.4 419.7 207.5 208.8 212.5 188.1 Other liabilities 242.3 657.3 408.0 424.8 268.0 296.9 329.2 247.6 224.6 170.3 148.6 TOTAL LIABILITIES 4,044.4 4,878.1 4,430.8 3,837.6 2,575.0 2,596.8 3,862.1 1,919.5 1,637.2 1,698.8 1,429.8

NET ASSETS 3,877.3 3,733.5 4,500.6 4,505.7 4,492.7 4,336.3 3,429.4 1,650.0 1,501.6 1,388.3 1,373.4 Contributed equity 2,962.8 3,778.0 3,770.9 3,761.6 3,751.1 3,735.2 2,929.9 1,153.6 1,126.2 1,107.9 1,096.3 Non-controlling interests 3.5 2.9 61.8 59.9 60.2 61.1 57.7 63.3 56.7 61.8 56.7 Retained earnings & reserves 911.0 (47.4) 667.9 684.2 681.4 540.0 441.8 433.1 318.7 218.6 220.4 TOTAL EQUITY 3,877.3 3,733.5 4,500.6 4,505.7 4,492.7 4,336.3 3,429.4 1,650.0 1,501.6 1,388.3 1,373.4

Funds Employed 5,852.7 5,848.4 6,643.9 6,234.1 5,456.4 5,560.2 5,376.6 2,419.8 2,140.4 2,033.6 2,042.4 Gearing % 33.8% 36.2% 32.3% 27.7% 17.7% 22.0% 36.2% 31.8% 29.8% 31.7% 32.8%Interest cover (times EBITDA, 12m rolling basis) 7.1 5.0 4.8 6.4 6.9 3.8 5.1 7.8 7.0 7.0 7.7 NTA/Share $ 1.3 1.3 1.2 1.4 1.8 1.7 1.5 2.4 2.2 2.0 1.9

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48* The financial measures displayed in this table are based on statutory results.

Pre-2004 results can be found on Arrium's website.

Historical data – statutory cash flow*

1 Dec13 data is from the Half Year 2014 Financial Report. The historical data from FY13 and prior are from the Full Year Financial Report 2013, and they exclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013.

Period Ended1 Dec13 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004$m $m $m $m $m $m $m $m $m $m $m

Profit after tax 220.9 (692.6) 63.6 237.5 260.7 239.6 255.1 218.9 201.1 220.3 140.3

Depreciation, amortisation and impairment 182.0 1,204.2 363.0 215.7 215.1 201.8 212.5 96.2 94.0 91.7 108.1

Non-cash items (20.5) (32.6) 17.7 (16.8) (1.8) (2.0) 16.5 (8.5) (1.1) (65.2) (15.1)

Other changes in assets and liabilities including working capital (38.0) 111.2 25.8 26.7 128.1 (71.4) (133.3) (30.1) (43.2) (10.9) (45.0)

Operating cash flow 344.4 590.2 470.1 463.1 602.1 368.0 350.8 276.5 250.8 235.9 188.3

Capital expenditure (209.6) (459.2) (401.3) (251.3) (173.2) (187.6) (306.9) (357.9) (214.4) (126.9) (141.5)

Free Cash Flow 134.8 131.0 68.8 211.8 428.9 180.4 43.9 (81.4) 36.4 109.0 46.8

Investment expenditure - - (317.7) (992.9) (33.6) (3.3) (433.2) (2.6) (13.2) (0.6) (9.9)

Asset Sales 117.4 122.3 115.8 25.8 16.7 32.6 3.8 12.2 6.7 4.9 45.3

Other - - - 4.0 - - 0.8 (0.8) 1.9 0.8 2.7

Operating & investing cash flow 252.2 253.3 (133.1) (751.3) 412.0 209.7 (384.7) (72.6) 31.8 114.1 84.9

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1 Dec13 data is from the Half Year 2014 Financial Report. The historical data from FY13 and prior are from the Full Year Financial Report 2013, and theyexclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013.2 These statistics include results relating to the WPG subsidiaries acquired on 6 October 2011.3 Ore by products include dolomite, centrix, filter cake and pellet chips.

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Historical data – Mining

Period Ended1 1H14 FY13 FY122 FY11 FY10 FY09 FY08$m $m $m $m $m $m $m

Total revenue/income 877.4 976.9 819.0 948.4 782.3 598.5 561.2

EBITDA 423.1 339.6 343.7 554.2 361.2 138.0 220.9

EBIT 323.5 248.5 302.9 523.5 333.4 113.0 212.9

Sales Margin 36.9% 25.4% 37.0% 55.2% 42.6% 18.9% 37.9%

Assets 2,171.2 2,159.1 1,685.9 948.4 816.7 769.2 542.0

Funds Employed 1,688.2 1,658.5 1,379.7 776.3 717.4 688.9 461.8

Return on funds employed 40.1% 16.4% 28.1% 70.1% 47.4% 19.6% 46.1%

Employees (number) 585 571 532 367 339 357 152

External lump & fines iron ore sales (Mt) 6.12 8.28 6.29 6.04 6.03 5.07 4.46

Pellets, other ore and by products (Mt)3 0.20 0.57 0.44 0.72 0.81 0.69 0.88

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1 Dec13 data is from the Half Year 2014 Financial Report. The historical data from FY13 and prior are from the Full Year Financial Report 2013, and they exclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013.2 The FY08-FY10 results have been restated to reflect changes in organisation structure following the formation of the new Mining Consumables segment as aresult of the acquisition of the Moly-Cop Group. The Waratah, Newcastle facilities, which include the grinding media and rail wheel businesses, The grinding mediabusinesses in the United States and Indonesia, and the wire ropes business at Newcastle previously reported as part of the Steel segment now form part of theMining Consumables segment.3 These statistics include the results of the Moly-Cop Group from 31 December 2010. Assets and liabilities have been restated to reflect the final fair valueadjustments arising on acquisition of the Moly-Cop Group in December 2010.4 Excludes scrap sales.

Historical data – Mining Consumables

Period Ended1 1H14 FY13 FY12 FY113 FY102 FY092 FY082

$m $m $m $m $m $m $m

Total revenue/income 786.5 1,566.7 1,540.6 1,079.3 680.1 659.8 509.2

EBITDA 100.4 197.2 171.6 97.7 83.2 41.7 82.0

EBIT 76.4 152.6 135.2 65.3 62.3 22.8 65.6

Sales Margin 9.7% 9.7% 8.8% 6.1% 9.2% 3.5% 12.9%

Assets 2,519.4 2,460.5 2,310.3 2,286.4 1,158.5 1,125.0 1,104.3

Funds Employed 2,139.4 2,071.6 1,947.5 1,944.9 1,053.6 1,040.1 1,015.0

Return on funds employed 7.5% 7.6% 6.9% 4.4% 6.0% 2.2% 6.5%

Employees (number) 2,063 2,031 1,973 1,864 924 910 820

External tonnes despatched (Mt)4 0.56 1.14 1.06 0.73 - - -

Internal tonnes despatched (Mt) 0.02 0.09 0.09 0.09 0.10 0.05 -

Steel tonnes produced (Mt) 0.25 0.51 0.50 0.40 0.24 0.24 0.26

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1 Dec13 data is from the Half Year 2014 Financial Report and comprise of continuing operations. The historical data from FY13 and prior are from the Full Year Financial Report 2013, and they exclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013 and have not been restated since June 2013 to reflect changes in the Group’s continuing and discontinued businesses in 1H14.2 Steel historical information has been derived by adding together the Manufacturing and Distribution segments. Transactions between these segments have not been eliminated.3 Steel information for FY11, FY12 & FY13 excludes transactions between entities previously in the Manufacturing and Distribution segments and includes discontinued operations.

Historical data – Steel

Period Ended1 1H14 FY133 FY123 FY113 FY102 FY092 FY082 FY072 FY062 FY052 FY042

$m $m $m $m $m $m $m $m $m $m $m

Total revenue/income 1,438.1 3,485.8 4,058.8 3,950.4 4,993.5 6,424.9 6,272.8 4,549.1 3,910.9 3,828.6 3,192.4

EBITDA 30.1 75.8 65.9 (37.1) 188.3 499.9 423.3 418.5 369.5 348.5 316.8

EBIT (21.2) (43.0) (56.4) (164.6) 56.8 372.0 279.2 331.4 284.1 259.1 236.7

Sales Margin (1.5%) (1.2%) (1.4%) (4.2%) 1.1% 5.8% 4.5% 7.3% 7.3% 6.8% 7.4%

Assets 2,154.0 2,505.5 3,534.5 3,966.9 4,132.9 4,125.5 4,637.7 3,136.1 2,869.8 2,778.2 2,621.5

Funds Employed 1,619.6 1,778.2 2,821.8 3,171.9 3,183.0 3,326.5 3,429.8 2,364.9 2,208.8 2,052.0 2,031.4

Return on funds employed (2.4%) (1.9%) (1.9%) (5.2%) 1.7% 11.0% 9.6% 14.5% 13.3% 12.7% 11.8%

Employees (number) 5,163 5,946 6,164 6,922 7,020 7,408 8,211 6,292 6,396 6,391 6,263

External tonnes despatched (Mt) 1.13 2.36 2.57 2.44 2.36 2.43 3.18 2.28 2.27 2.26 2.15

Steel tonnes produced (Mt) 0.97 1.99 2.00 1.92 1.91 1.79 2.44 1.73 1.63 1.35 1.62

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1 Dec13 data is from the Half Year 2014 Financial Report and comprise of continuing operations. The historical data from FY13 and prior are from the Full Year Financial Report 2013 and includes total operations, and they exclude the impact of any new accounting standards and interpretations issued but not effective as at 30 June 2013 and have not been restated since June 2013 to reflect changes in the Group’s continuing and discontinued businesses in 1H14.

Historical data – Recycling

Period ended1 1H14 FY13 FY12 FY11 FY10 FY09 FY08$m $m $m $m $m $m $m

Total revenue/income 547.0 1,349.5 1,589.7 1,507.2 1,123.7 1,124.0 1,404.1

EBITDA 3.2 7.5 24.1 37.6 22.9 (21.8) 98.4

EBIT (2.1) (8.3) 6.6 20.9 7.7 (38.6) 86.5

Sales Margin (0.4%) (0.6%) 0.4% 1.4% 0.7% (3.4%) 6.2%

Assets 372.9 479.8 675.3 652.5 710.7 614.1 741.5

Funds Employed 295.9 365.2 567.4 554.3 618.4 537.7 620.8

Return on funds employed (1.0%) (1.8%) 1.2% 3.6% 1.3% (6.7%) 13.9%

Employees (number) 628 849 973 1,033 1,019 1,016 1,127

Ferrous tonnes - external (Mt) 0.38 0.81 1.01 0.95 0.75 0.89 0.88

Ferrous tonnes - internal (Mt) 0.40 0.82 0.85 0.96 0.94 0.77 0.83

Non-ferrous tonnes (Mt) 0.12 0.26 0.25 0.25 0.19 0.14 0.18

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1H14 statutory vs underlying results

1 Relating to the results of Australian Tube Mills, Merchandising and US Recycling businesses. Excludes intercompany transactions. Statutory EBITDA and statutory net profit after tax including intercompany transactions are $10.4m loss and $4.1m loss respectively.2 Related to redundancies from organisational changes and other direct expenditure associated with business restructures. 3 Impairment of property, plant and equipment and intangible assets associated with Mining Consumables, Steel, US Recycling and Merchandising businesses.4 Tax adjustment relates to the net impact of Mineral Resource Rent Tax

Year ended 31 December 2013

Reconciliation between Underlying and Statutory Results

Continuing operations

Discontinued operations1

Total Operations Statutory

Restructuring costs2 Impairment3

Tax adjustments4

Total Operations Underlying

Sales revenue 3,358.6 283.9 3,642.5 - - - 3,642.5 Other revenue/income 70.0 4.4 74.4 - - - 74.4 Total revenue/income 3,428.6 288.3 3,716.9 - - - 3,716.9 Gross profit/(loss) 721.5 (27.4) 694.1 - - - 694.1 EBITDA 568.8 (70.0) 498.8 4.6 - - 503.4 Depreciation and amortisation (181.0) - (181.0) - - - (181.0) Impairment (4.7) 3.7 (1.0) - 1.0 - 0.0 EBIT 383.1 (66.3) 316.8 4.6 1.0 - 322.4 Finance costs (62.0) - (62.0) - - - (62.0) Earnings before tax 321.1 (66.3) 254.8 4.6 1.0 - 260.4 Tax expense/(benefit) (54.9) 21.0 (33.9) (1.4) (0.3) (23.7) (59.3) Profit/(loss) after tax 266.2 (45.3) 220.9 3.2 0.7 (23.7) 201.1 Non-controlling interests (0.5) - (0.5) - - - (0.5) Net profit/(loss) after tax 265.7 (45.3) 220.4 3.2 0.7 (23.7) 200.6

Statutory Results Underlying Results

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1H13 statutory vs underlying results

1 Relating to the results of the Australian Tube Mills, Merchandising, US Recycling and Steel and Tube Holdings businesses. Excludes intercompany transactions. Statutory EBITDA and statutory net profit after tax including intercompany transactions are $9.6m and $382.7m loss respectively.2 Related to redundancies from organisational changes and other direct expenditure associated with business restructures. 3 Impairment of the ARC brand name portfolio and goodwill in the Manufacturing and Distribution segments. 4 Tax adjustments related to prior year adjustments and the net impact of Mineral Resource Rent Tax. 5 Related to gains on sale of Steel & Tube Holdings and other non-recurring costs.

Half-year Ended 31 December 2012

Reconciliation between Underlying and Statutory Results

Continuing operations

Discontinued operations1

Total Operations Statutory

Restructuring costs2 Impairment3

Tax adjustments4 Other items5

Total Operations Underlying

Sales Revenue 2,965.9 438.5 3,404.4 - - - - 3,404.4 Other Revenue/Income 43.7 9.3 53.0 - - - - 53.0 Total Revenue/Income 3,009.6 447.8 3,457.4 - - - - 3,457.4 Gross Profit 542.2 13.9 556.1 - - - - 556.1 EBITDA 293.9 (52.1) 241.8 13.7 - - (0.9) 254.6 Depreciation & Amortisation (119.9) (14.5) (134.4) - - - - (134.4) Impairment (96.5) (378.0) (474.5) - 474.0 - - (0.5) EBIT 77.5 (444.6) (367.1) 13.7 474.0 - (0.9) 119.7 Finance costs (57.5) (0.7) (58.2) - - - - (58.2) (Loss)/profit before tax 20.0 (445.3) (425.3) 13.7 474.0 - (0.9) 61.5 Tax expense/(benefit) (40.8) 20.3 (20.5) (4.1) - 16.3 (0.4) (8.7) (Loss)/profit after tax (20.8) (425.0) (445.8) 9.6 474.0 16.3 (1.3) 52.8 Non-controlling interests (0.4) (1.4) (1.8) - - - - (1.8) Net (loss)/profit after tax (21.2) (426.4) (447.6) 9.6 474.0 16.3 (1.3) 51.0

Statutory Results Underlying Results

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This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Arrium and certain plans andobjectives of the management of Arrium. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’,‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. All such forward looking statements involve known and unknown risks, significantuncertainties, assumptions, contingencies and other factors, many of which are outside the control of Arrium, which may cause the actual results or performance of Arriumto be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only asof the date of this presentation. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertaintiesassociated with the Australian and global economic environment and capital market conditions, the cyclical nature of the steel industry, the level of activity in theconstruction, manufacturing, mining, agricultural and automotive industries in Australia and North and South America and, to a lesser extent, the same industries in Asiaand New Zealand, mining activity in the Americas, commodity price fluctuations, fluctuations in foreign currency exchange and interest rates, competition, Arrium'srelationships with, and the financial condition of, its suppliers and customers, legislative changes, regulatory changes or other changes in the laws which affect Arrium'sbusiness, including environmental laws, a carbon tax, mining tax and operational risk. The foregoing list of important factors is not exhaustive. There can be no assurancethat actual outcomes will not differ materially from these statements.

This presentation contains certain non-statutory financial measures including underlying EBIT, underlying EBITDA, underlying NPAT, underlying earnings per share andunderlying effective tax rate. These measures are used to assist the reader understand the financial performance of the company’s operations. Non-statutory financialinformation has not been audited or reviewed as part of KPMG’s report on the 2014 Half Year Financial Report. The Directors believe that using these non-statutoryfinancial measures appropriately represents the financial performance of the Group’s total operations including continuing and discontinued operations. Details of thereconciliation between non-statutory and statutory financial measures can be found in the Appendix of this presentation.

All balance sheet items are based on statutory financial information. Except as otherwise expressed, references in this document to net profit/loss after tax refer to netprofit/loss attributable to equity holders of the parent.

The December 2012 and June 2013 comparatives have not been restated to reflect the application of the new Interpretation 20 Stripping Costs in the Production Phase ofa Surface Mine and the revised AASB 119 Employee Benefits.

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