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1 2013 Australian Steel Convention Andrew Roberts Managing Director and CEO 9 September 2013

2 This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Arrium and certain plans and objectives 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, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of Arrium, which may cause the actual results or performance of Arrium to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this presentation. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, the cyclical nature of the steel industry, the level of activity in the construction, manufacturing, mining, agricultural and automotive industries in Australia and North and South America and, to a lesser extent, the same industries in Asia and New Zealand, mining activity in the Americas, commodity price fluctuations, fluctuations in foreign currency exchange and interest rates, competition, Arrium's relationships with, and the financial condition of, its suppliers and customers, legislative changes, regulatory changes or other changes in the laws which affect Arrium's business, including environmental laws, a carbon tax, mining tax and operational risk. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements. 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 net profit/loss attributable to equity holders of the parent. Segment results referred to throughout this presentation are those reported in the 2013 Full Financial Report. They are equivalent to segment underlying results. 2

3 Contents Page Arrium overview 4 Steel 6 Market segment conditions 13 Building the future in steel 15 Conclusion 20 3

4 Arrium overview Steel is an important part of Arrium s portfolio 4

5 Arrium overview Transformational year Maintained significant improvement in performance delivered by the Steel business Completed expansion to double iron ore sales rate and port capacity at Whyalla on-time and budget Continued strong earnings in Mining Continued strong earnings and earnings growth in Mining Consumables Arrium continues to deliver on its commitments 5

6 Steel Committed to the steel industry Delivered positive EBITDA A single steel business effective 1 July 2013 Strong customer focus Flexible, agile and responsive to market needs Confidence in dealing with a committed long-term partner Trading as OneSteel Arrium is committed to the steel industry 6

7 Steel OneSteel - single steel business Integrated value chain and businesses Steve Hamer - Chief Executive Experienced management team Revenue of $3.5bn (including ATM and Merchandising) in FY13 and 2.6MT of steelmaking capacity Directly employing approximately 5,200 people across Australia Australian Tube Mills and Merchandising businesses held for sale 7

8 Steel Sites People Revenue Sites People Revenue Sites People Revenue $0.95bn $1.3bn $300m+ Reliable supplier of billet in our integrated channel with rail and structurals into our chosen distributor channels Flexible and reliable supplier of rebar, rod & mebar into our chosen distributor channels The largest processor & distributor of wire products into rural & construction markets 8

9 Steel Sites People Revenue Sites People Revenue Sites People Revenue $700m $600m $500m+ The leading distributor of a broad range of products leveraging scale in market coverage, product range, operations & supply chain Australia s largest reinforcing provider focussed on top-tier projects and helping customers with their construction risks The leading provider of reinforcing products to the mid-tier and smaller project markets 9

10 Key market segments FY13 Steel Domestic Sales by Market Segment Source: Management estimates Residential, non-residential and engineering construction (including mining investment) drives demand for reinforcing bar and wire, rod for mesh, hot rolled structurals, merchant bar 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 Approximately 75% of Steel revenue is driven by construction 10

11 Our value proposition to our customers CUSTOMERS RISKS MITIGATED UNDERSTAND MARKETS NEEDS Customer is respected and a Core Value Full control of our end-to-end integrated manufacturing processes and transparent supply chain Long-term industry involvement with shared benefit and risk of local industry success Knowledgeable of products, their applications, end-use markets and global trends Innovative solutions to solve customer problems Manufacture or import supply solutions to deliver meaningful products and services FLEXIBLE TO MARKET DYNAMICS PREDICTABLE Variety of business models enacted through locally empowered leaders Sprint capacity to match market needs Extensive national footprint Local and ready to listen Do what we say we will Reliable Product consistency Scale through integrated supply chain from raw materials to sales VALUE FOR MONEY QUALITY Straight forward commercial relationships that make business easy Relentless focus on costs Safety is a Core Value Meet standards and certification In-house engineering to optimise design Core metallurgical expertise 11

12 Australian Tube Mills and Merchandising Australian Tube Mills and Merchandising are long established and reputable businesses Merchandising includes Sheet and Coil, Aluminium and Metpol Chief Executive Naomi James Businesses held for sale - not part of Steel s integrated value chain These businesses offer strong value propositions to the Australian industry Australian Tube Mills has recently been re-branded to 12

13 Market segment conditions Increase in residential commencements Non-residential commencements to grow over the medium term Value of engineering construction projects to increase We have a positive mid to long-term view of the Australian construction segments Source: NIEIR 13

14 Market segment conditions Mining investment has come off its peak but remains stable above historical levels Mining production is projected to increase Source: NIEIR Providing improved opportunities for local content 14

15 Building the future in steel Local content Growing steel intensity Effective and efficient domestic supply chain OneSteel is committed to building the future in steel 15

16 Local content Effective and efficient supply chain Whyalla Port expansion, doubling capacity to 13mtpa, completed ontime and on budget ~ $200million ~ 90% local sourcing TITLE ~ TEXT 8,100 tonnes of steel First sales through Whyalla Port in December 2012, 10 months from commencement of construction Doubling sales rate to 12mtpa - June 2013 This could not have been achieved without an effective and efficient local supply chain 16

17 Local content Effective and efficient supply chain Arrium has invested circa $700million in mining capital expansions since Project Magnet commenced in 2005 Local industry continues to deliver Close links between designer and suppliers are critical to execution Robust supply chain includes designers, construction contractors, fabricators and specialised engineering firms such as; Leighton Contractors Kerman Contracting Manuele Engineering Gadaleta Steel Fabrication Link Engineering Rail & materials handling facilities under construction October, 2012 Delivering results using RAIL local INFRASTRUCTURE supply 17

18 Local content and growing steel intensity An effective and aligned value chain local industry working together Brookfield Place Tower 1 4,300 t Brookfield Place Tower 1 was a very successful project, delivered using local supply Customers: Builder Brookfield Multiplex Constructions Steel contractor - PIC Brookfield Place Tower 2 is now underway leveraging the steel industry s local supply chain A proven model leveraging an effective and efficient local supply chain Brookfield Place Tower 2 2,000 t 18

19 Growing steel intensity Grocon s experience is that steel solutions help VCC Admin Building, Melbourne. us get the project completed safely, on-time & onbudget Jason O Hara Construction Manager VIC & SA 150 Collins St, Melbourne. ATO Building, Box Hill, Melbourne. FCAD Building, Footscray, Vic VCCC Admin Building, Melbourne. 480 Queen St, Brisbane. 5 Martin Place, Sydney. Grocon is proving that structural steel is a serious alternative as a framing solution 19

20 Conclusion Steel is an important part of Arrium s portfolio OneSteel s integrated steel businesses, products and brands you know are here to stay OneSteel fully supports the ASI s three strategic themes OneSteel is committed to building the future in steel with our customers 20

21 Questions 21