PERFORMANCE OVERVIEW

BLUESCOPE STEEL BUSINESS SEGMENTS

Coated AND Industrial Products Australia

New Zealand AND Pacific Steel Products

Australia Distribution AND Solutions

Very strong result with record production

Improved operating performance continues

Significant earnings turnaround and increased sales

_ Production records set for hot rolled coil (2.89Mt), plate (0.427Mt), Western Port metal coating (797kt), Acacia Ridge paint line (98kt)

_ Improved spreads – higher steel prices and lower coating metal and coal costs

_ Earnings partly offset by higher freight and maintenance costs and unfavourable movement in the AUD v USD exchange rate

_ No 5 blast furnace reline on schedule to commence March 2009

_ Record COLORBOND® steel sales and increased sales of TRUECORE® steel

_ Successful startup of Western Sydney Service Centre manufacturing operations

_ Slab production up 2% to 605kt due to strong ironmaking and stable slab casting operations

_ Record heavy plate (15.7kt) and light plate (62kt) production

_ Stronger domestic conditions and strong export demand for hot rolled coil

_ Revenue fell $3 million, affected by unfavourable exchange rates

_ Earnings 6% lower, due to increased electricity prices and higher gas and coal prices

_ All operations areas actively involved in improvement process, with small teams working on cost reductions and sustainability initiatives

_ Acquisition of Smorgon Steel Distribution in August 2007 contributed to increased revenue and earnings

_ Earnings improvement also reflects lower costs in BlueScope Lysaght business

_ Strong residential and non-residential markets in Western Australia and Queensland for BlueScope Distribution

_ Demand for Lysaght products in commercial and industrial segment strong in Queensland, Western Australia and Tasmania

_ Integration of BlueScope Steel Service Centres and Sheet Metals Supplies processing business on target

	FY 07/08	FY 06/07
External Despatches ('000s of tonnes)
Domestic	2,141	2,282
Export	1,851	2,267
Revenue ($m)	6,042	5,525
EBIT ($m)	986	799
Net Operating Assets (pre-tax) ($m)	2,841	2,937
Return on Net Assets (pre-tax)	35%	27%

	FY 07/08	FY 06/07
External Despatches ('000s of tonnes)
Domestic	300	302
Export	277	261
Revenue ($m)	725	728
EBIT ($m)	93	90
Net Operating Assets (pre-tax) ($m)	346	431
Return on Net Assets (pre-tax)	24%	24%

	FY 07/08	FY 06/07
External Despatches ('000s of tonnes)
Domestic	960	190
Export	13	-
Revenue ($m)	2,202	700
EBIT ($m)	45	12
Net Operating Assets (pre-tax) ($m)	1,038	288
Return on Net Assets (pre-tax)	5%	4%

Coated AND Building Products Asia

Hot Rolled Products North AmericA

Coated AND Building Products North America

Improved results, excellent operating performance

Excellent operating performance from North Star BlueScope Steel joint venture

A very strong year

_ Sales revenue 14% higher at $1.6 billion, due to higher sales volumes across all regions

_ Increased earnings due to improved margins, as higher prices more than offset higher feed costs

_ Earnings adjusted for $225 million impairment of China and Vietnam coating facilities

_ Strong operating performance in Malaysia, Vietnam and Thailand

_ Some market improvement in Thailand, but political tensions remain

_ Indonesia operating at capacity, buoyed by strong domestic market conditions

_ Improved sales of coated products in China, largely due to increased sales force and new products, and strong sales in the PEB market

_ $50 million earnings decrease due to higher scrap costs and unfavourable movement in AUD v USD exchange rate

_ Record annual raw steel production of 983kt

_ Voted number one flat steel supplier to the service centre segment in North America for the sixth consecutive year in the latest Jacobson survey of customers

_ Overall weaker demand in US market

_ Castrip LLC joint venture facility at Crawfordsville, IN now operating continuously and building strong momentum in productivity and quality

_ Construction of second Castrip facility at Blytheville, AR well underway

_ IMSA Steel Corp assets acquired 1 February 2008, HCI Steel Building Systems acquired 31 October 2007

_ Sales revenue and earnings increase primarily due to IMSA Steel Corp acquisition, higher sales volumes and improved domestic sales prices, partly offset by unfavourable movement in AUD v USD exchange rate

_ Increased spreads as sales price increases exceeded raw materials costs

_ Butler Buildings market share higher

_ Total despatches for Butler Building – excluding VP Buildings Inc – up 11%

	FY 07/08	FY 06/07
External Despatches ('000s of tonnes)
Domestic	908	777
Export	212	157
Revenue ($m)	1,570	1,375
EBIT ($m)	(148)	34
Net Operating Assets (pre-tax) ($m)	932	1,180
Return on Net Assets (pre-tax)	-14%	3%

	FY 07/08	FY 06/07
External Despatches ('000s of tonnes)
Domestic	960	942
Export	-	-
Revenue ($m)	-	-
EBIT ($m)	105	155
Net Operating Assets (pre-tax) ($m)	183	235
Return on Net Assets (pre-tax)	46%	57%

	FY 07/08	FY 06/07
External Despatches ('000s of tonnes)
Domestic	490	182
Export	21	14
Revenue ($m)	1,407	788
EBIT ($m)	90	37
Net Operating Assets (pre-tax) ($m)	881	63
Return on Net Assets (pre-tax)	28%	50%