BROADENING OUR HORIZONS - Arrium

OneSteel Annual Report 20114,0002006,0004000FINANCIAL &OPERATIONALSUMMARY2,000600040020080007 08 09 10 1104,000 3002,0002000100600200007 08 09 10 11600040007 08 09 10 112008004Financial overview• Sales revenue up 15% to $7,133 millionSales Revenue ($m)60008,00007 08 09 10 110400 EBITDA ($m)07 08 09 10 1160008008000• Underlying EBIT up 3% to $428 million• Statutory net profit after tax down 11% to $230 million4006,0002006004006000• Underlying net profit after tax down 2% to $235 million200200• Strong underlying operating cash flow of $477 million4,0004000400007 08 09 10 11• Statutory net debt increased to $1,728 millionfollowing acquisition of the Moly-Cop Group• Statutory gearing ratio increased 10 points to 27.7%following acquisition of the Moly-Cop Group• Total dividend for the year 10 cents (unfranked), downfrom 11 cents in the prior year.Operational overview• Overall performance impacted by difficult externalenvironment and ongoing effects of GFC• Resources focused businesses performed well• Iron Ore EBIT up 57% to $524 million02,00030007 08 09 10 11007 08 09 10 11200EBIT ($m)600100800400007 08 09 10 11600020020003002,0000007 08 09 10 111,500200Net Profit After Tax ($m)1,000300600100500800200 6004000007 08 09 10 11600• Achieved Iron Ore sales volume of 6 million tonnes• Confident that there will be sufficient reserves andbeneficiated ore to support sales at 6 million tonnes perannum for at least 10 years 1200400400 100200400• Mining Consumables EBIT $65 million– New Moly-Cop Group businesses included from1 January 2011• Recycling EBIT $21 million, significant improvementfrom $8 million in prior year200007 08 09 10 110Net Debt ($m)2,00007 08 09 10 112000200007 08 09 10 110Funds Employed ($m)06,00007 08 09 10 112000• Australian steel businesses impacted by adverseexternal environment• Manufacturing underlying EBIT loss $185 million1,5004,0001500• Australian Distribution underlying EBIT $10 million1,000 3001000 300• Raw steel production increased to 2.31 million tonnesdue to the contribution from AltaSteel• Significant leverage to economic recovery.1 Iron ore sales expected to increase to approximately 9-10 milliontonnes per annum following announced port expansion at Whyallaand agreement to acquire WPG Resources’ iron ore assets600500200400010020007 08 09 10 112,0002,0003001,50001,000200600500200400007 08 09 10 111002005000007 08 09 10 1107 08 09 10 1110000007 08 09 10 11