8 November 2005 Building on 150 years CSR 1855-2005 CELEBRATING 150 YEARS CSR Limited Results Presentation Half year ended 30 September 2005 1 Highlights Diversity of portfolio Half year profit of mitigated impact of delay in $115 million sugar milling returns $249m returned to Gearing returned to shareholders through capital target range management and dividends $100+ million invested in Progress with growth growth projects in the last six projects continues months Upgrade to full year profit Full year profit to be about 10% ahead of last year outlook 2 1
Diversity of portfolio mitigated impact of delay in sugar returns Half year ended 30 September $m EBIT % Change 2005 2004 Building Products 60.6 60.5 0.2 Aluminium 65.0 72.9 -10.8 Sugar 1 43.6 79.4 -45.1 Property 30.9 17.0 81.8 Subtotal 200.1 229.8 -12.9 Corporate costs -8.5 -9.3 Restructure and provisions 2 -3.9 -2.8 Total EBIT 187.7 217.7 -13.8 Note: Results for the half year ended 30 September 2005 are reported under Australian equivalents to international reporting standards (“A-IFRS”). The comparative results for the previous half year are restated to comply with A-IFRS requirements. 1. Assumes raw sugar price of $280 per tonne for HYES05 and $250 for HYES04 2. Includes product liability provision and superannuation. 3 Gearing increased to target range following capital return � $182m $182m ca capital pital return h return has s ($ in million unless 30 Sept 31 Mar shifted gearin shifted gearing back back to target to target stated) 2005 2005 range range Net debt $573.1 $270.1 � Gearing Gearing now now 32.9% - 32.9% - up from p from 17.7% 17.7% at Ma at March rch 05 05 Total equity $1,169.3 $1,256.1 � Fund unds employ s employed has ed has incr creas eased d by 27% si by 27% since the nce the demer merger er Net debt: Net 32.9% 17.7% fol follo lowi wing ng si signif ificant i ant inves vestment ment debt + equity during du ng last last two two ye years ars Net debt: equity 49.0% 21.5% � St Strong cash ng cash f flow ow pr prov ovides es Net interest 18.1x 30.4x flexibility f exibility for future r future growth growth cover projects projects Funds employed $1,743 $1,527 4 2
Lifting operational performance and seeking opportunities for value creating growth Strategy to maximise shareholder returns: � Aggressively pursue operational performance improvement in Building Products and pursue sensible growth � Build Sugar into self-sustaining business through growth in stable, higher value businesses (refining, renewable energy, ethanol) � Take advantage of hedging to lock in stronger raw sugar prices as opportunities arise � Increasing value of Aluminium by improving Tomago operational performance, creeping capacity and lifting value added production while maintaining ongoing hedging program � Establish Property as a sustainable earnings source 5 Building Products – returns steady despite slower housing market $m HYES 2005 2004 % � Operational improvements offset Trading revenue 496 490 1 lower volumes due to slowdown in housing market EBIT 61 61 0 EBIT Margin 12.2% 12.3% � 55% of exposure to NSW and Qld 80 markets 70 Move Movements in ments in EB EBIT IT -16 61 6 61 4 60 15 50 -9 0 $ million 40 30 20 10 0 HYES04 Volume Price Inflation OIP cost OIP market Other HYES05 (1) reduction initiatives (1) $6m benefit from other items relates to one-off expenses incurred last year. 6 3
All Building Products businesses targeting new products and markets � Gyprock ™ – delivered planned cost Othe Ot her In Insulation, reductions while maintaining margins 1% 1% Hebe He bel, Pane nels ( (inc nc � Cemintel ™ Fibre Cement – volumes steady As Asia) Gyproc Gy ock, despite slowdown in some key markets 24% 24 Fi Fibre � Monier ™ and Wunderlich ™ Roofing – Cement Ce 41% 41% revenue lower due to reduced volumes as residential market slowed � CSR Bricks & Pavers – PGH ™ returns impacted by significant fall in demand in NSW and Qld Roof oofing � Bradford Insulation ™ – profitability 19% 19% increased with higher prices and cost improvements Bricks a Bri and • Asia – volumes increasing in China Pavers Pa following completion of two expansion projects 15% 15% � Hebel ™ – Returns impacted by softer demand in NSW multi-residential sector HYES05 Tr HYES0 Trad ading ing Reven Revenue - ue - $49 $496 6 million llion partly offset by demand from other markets 7 Operational improvement (OIP) on track to deliver $75m over three years $80 Half year 30 September 2005 $70 � $19 million in OIP initiatives generated in last six months $60 includes: � $15 million in cost $50 reduction � $4 million in $40 market initiatives $30 $20 $10 $- YEM04 YEM05 YEM06 YEM07 8 4
Paroc Panel™ increasing sales in the commercial market � Paroc Panel™ non combustible panel system is increasing sales to the commercial market � Distribution networks established throughout Australia and in New Zealand and Asia � $20m construction of manufacturing facility to begin in southern China – completion targeted for Jan 2007 9 Aluminium EBIT down 11% due to higher A$/US$ and increased production costs � Trading revenue down 2.5% due to $m HYES 2005 2004 % lower shipments in the first half of the Trading Revenue 234 240 -3 year EBIT 65 73 -11 � EBIT down 10.8% due to higher A$/US$ EBIT Margin 27.8% 30.4% exchange rate and higher aluminium 10 10 ye year ar a alum uminiu inium p price ice production costs 3,500 3,500 US$/tonne HYES 2005 2004 2003 A$/tonne 3,000 3,000 GAF sales in 87,275 88,735 81,782 tonnes 2,500 2,500 LME US$ price $1,821 $1,701 $1,400 per tonne US$/A$ 0.764 0.712 0.649 2,000 2,000 average rate A$ ave spot A$2,384 A$2,388 A$2,156 1,500 1,500 price per tonne 1,000 1,000 5 7 8 0 2 3 5 9 9 9 0 0 0 0 - - - - - - - r v p r t u l b c p o e e p O J A N F S A - - - 4 - 2 8 - - - 6 10 5 1 4 2 2 2 1 2 5
Hedging program continues in YEM06 and beyond as opportunities arise Hedge Book Hedge Book in US$ in US$ milli millions ons as of 31 as o 31 Oc October 200 ber 2005 � Approximately 90% of net exposure to aluminium and Al Aluminium Curre rrency currency hedged for the remainder 180 18 of YEM06 154 154 160 16 140 14 13 131 illions � Active hedging program continues 120 12 millio 10 102 100 10 with 65% of net aluminium 84 84 US$ m 80 80 exposure now hedged for YEM07 60 60 48 48 40 40 30 30 20 20 0 HYEM HY EM06 06 YEM07 Beyond 0. 0.565 0. 0.657 0. 0.617 Averag Ave age forward forward curr currency rate cy rate in US ce in US cents nts Average Averag e fo forward rward alum alumin iniu ium p m price in US$ per to ice in US$ per tonne 1, 1,582 1, 1,682 1,687 1, 11 Property activities continue to grow $m HYES 2005 2004 % � EBIT improved to $30.9 million after reaching agreements on property Total revenue 24.5 15.3 60.1 transactions EBIT 30.9 17.0 81.8 � Announced today the sale of 16.7 Capital investment 12.1 9.5 27.4 hectares at Erskine Park to Australand Pro Propert erty EB EBIT IT - - $m to generate a net return of approximately $23 million 75.0 75. 80 80 � Full year profit for Property to be 70 70 around $75 million following handover 60 60 of land to BlueScope Steel and sale to 50 50 Australand – both expected by March 40 40 2006 28 28.8 27.1 27 30 30 15.9 15 20 20 9. 9.2 10 10 0 YEM02 2 YEM03 Y YEM04 4 YEM05 Y YEM06 Forecast Note: YEM05 and YEM06 are calculated under A-IFRS while previous years have not been re-stated. 12 6
Erskine Park plan Erskine Park plan 13 Market Outlook Chris Grubb EGM bricks and pavers 14 7
NSW experiencing the sharpest slowdown in housing approvals this year NSW Approvals Monthly & Moving Annual (Seasonally Adjusted) 6 60 MAT Approvals (RHS) Monthly Approvals (LHS) 5 50 4 40 Starts (000's) Starts (000's) 3 30 2 20 • Jan-Jun 2005 Approvals average = 3,037 1 10 • Jul-Sep 2005 Approvals average = 2,743 0 0 9 0 0 1 1 2 2 3 3 4 4 5 9 0 0 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2 2 2 2 2 . . . . . c . n c . n c . n c . n c . n c . e . e u e u e u e u e u e n D J D J D J D J D J D u J 15 Source HIA, BIS Shrapnel, ABS, NIEIR Queensland market also softened Qld Approvals Monthly & Moving Annual (Seasonally Adjusted) 5 50 4.5 MAT Approvals (RHS) 45 Monthly Approvals (LHS) 4 40 3.5 35 3 30 Starts (000's) Starts (000's) 2.5 25 2 20 • Jan-Jun 2005 Approvals 1.5 15 average = 3,217 1 10 • Jun-Sep 2005 Approvals average = 3,130 0.5 5 0 0 0 1 2 3 4 5 9 0 1 2 3 4 9 0 0 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2 2 2 2 2 . . . . . . . . . . . . c n c n c n c n c n c e e u e u e u e u e u e n D J D J D J D J D J D u J Source HIA, BIS Shrapnel, ABS, NIEIR 16 8
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