STRATEGY FOR GROWTH

We have a strong foundation in Australia, New Zealand and Asia, and profitable growth opportunities from this base.

We will invest in existing facilities and sustainable growth opportunities to ensure we deliver on our commitments to our shareholders, our customers, our employees and our communities.

In summary, we will be a flat steel products and building solutions company that is focused on delivering shareholder value by:

• vigorously maintaining and enhancing the value of our existing businesses through:
  - branded value-added products and services
  - being a world-class, low-cost steelmaker
• pursuing growth in selected regions and market segments; and
• disciplined capital management.

We will continue to build on our market and production strengths, which include:

• being a provider of branded value-added flat steel products and building solutions to the Australian, New Zealand and Asian building and construction industries
• being a leading supplier of flat steel products and solutions to other market sectors in Australia and New Zealand
• maintaining low-cost, high-quality steelmaking and steel processing facilities in Australia, New Zealand and Asia and, through our joint ventures in the USA
• marketing and technology innovation in flat steel processes, products and building solutions
• nurturing long-term relationships with customers in many parts of the world.

Asia is our major geographical growth focus and we will continue to invest in and grow our Australian and New Zealand businesses. In particular, we will seek profitable growth avenues in the building and construction market segment, while responding to attractive opportunities in other market segments.

We have already made a number of announcements regarding our growth initiatives, including some that have been implemented. They include:

• commissioning two new roll-forming businesses in China, at Langfang near Beijing and in the western city of Chengdu
• doubling the capacity of our Indonesian paint line
• announcing capacity expansions of our existing Australian paint lines by 115,000 tonnes per annum and existing Australian metallic coating lines by 150,000 tonnes per annum over three years, with limited capital outlay
• progressing the development of a new COLORBOND® steel centre in western Sydney
• announcing the expansion of New Zealand Steel’s existing metallic coating capacity by 24,000 tonnes per annum
• announcing that we plan to build a metallic coating line and paint line in the Ba Ria-Vung Tau Province of Vietnam.

Our new status as an independent company has enabled us to respond more quickly and creatively to the needs of our customers, to reinvest in our business, and to start implementing our plans for profitable growth.

We are also continuing the hard work that we have undertaken over many years to improve the foundations of our business by continuously lifting our safety performance, as we strive to achieve our goal of Zero Harm. In addition, we are looking to strengthen relationships with our host communities, and further reduce the impact of our activities on the environment.