27 November 2007

BSI (SA) LIMITEDInvestors presentation – interim results

• Introduction

• Brief history

• Nature of the business

• Business risk assessment

• Financial review – for 6 months ending 30 Sept 2007

• Market overview and prospects

Contents

Directors

William Battershill - 47

Chief Executive Officer and

Chairperson

Nigel Payne - 47

Non-Executive Director

Grant MacKenzie - 42

Chief Operating Officer

Ethan Dube - 47

Non-Executive Director

James Waller – 43

Group Financial Director

• Other senior execs

• Ross Teichmann – CE Garrison steel

• Craig Parry – CE Discount Steel Trading

• Plus 10 other Divisional Directors

• 320 employees, including an experienced middle management team

Trading structure

BSI (SA) Limited

STOCKISTS BULK SALES EXPORTS

• Selling of stockholding

40% 2008 turnover

• Buying and selling of steel

30% 2008 turnover

• Sales outside SA

30%2008 turnover

Processing

• Cut to length line processes approx 60,000 tons per annum

• De-coiling steel from coils producing sheets and blanks

Stockists

• Average stock holding of group in excess of R130 million

• Average stock holding of group in excess of R130 million

Trading

• Group sales forecast Approx 200,000 tons for this fiscal (2008)

Our value add

• Stockholding – JIT delivery, diverse range

• Processing – Sheets, blanks, slit strip

• Distribution – outbound transport

• Finance – 30,60 & 90 days

• Broad based service package

FLAT PRODUCT ORIGIN 79% OF TONNAGE

Hot Rolled

Coil

Tube Makers Shearcut Processing

Sheets Blanks Slit Strip

TubePlate As Rolled

Cold Rolled

Coil

Galvanised

Coil

Electro/Galv Coil

PRODUCERS

Arcelor Mittal Van der Bijl

Highveld – Plate only

Duferco – Limited Exports

Imports -Adhoc

PRODUCTS SUPPLY CHAIN

LONG PRODUCT ORIGIN

21% OF TONNAGE

PRODUCERS

Arcelor Mittal Newcastle

Scaw

Cape Gate

Cisco

Highveld

PRODUCTS SUPPLY CHAIN

PRODUCTS

Angles, Flat Bar, Round Bar, Channels, Re-Bar, Beams and

Columns

Risk assessment

Risk• Price decrease

• Bad debts

• Fluctuating Rand

Strategy• Monitor international

market, preempt – reduce stock – import.

• Insure, monitor closely. Upfront payments Zimbabwe.

• Cover forward – imports. Sell in Rand where possible – exports. Pay weekly – DRC. Covert to Rand - Zambia

Interim Results

4.8c6.4cHEPS diluted

8.5%10.3%PBIT Margin

R34,5mR66.2mPBIT

R406.0mR636.9mRevenue

20062007

Financial Highlights - Interims

57%

92%

21%

33%

Unaudited 6 months

30 September 2007

R’000

Unaudited 6 months

30 September 2006

R’000

Audited 12 months31 March

2007R’000

Revenue 636 903 406 018 876 903Gross Profit 105 791 55 653 118 918Other income 274 489 3 286Other costs (37 999) (20 686) (64 605)Earnings before interest, taxation, depreciation and amortisation (“EBITDA”) 68 066 35 456 57 599Depreciation (1 904) (909) (1 636)Profit before interest and taxation 66 162 34 547 55 963(Loss)/Profit on disposal of assets (120) - 1 903Fair value adjustment on Investment property - - 1 688Interest received 402 202 1 194Interest paid (12 650) (4 265) (12 979)Profit before taxation 53 794 30 484 47 769Taxation (14 320) (8 406) (14 239)Profit after taxation 39 474 22 078 33 530Minority interests - (5 310) (8 491)

Earnings attributable to ordinary shareholders 39 474 16 768 25 039

Reconciliation of headline earnings:Earnings attributable to ordinary shareholders

39 474 16 768 25 039Loss/(Profit) on disposal of assets 120 - (1 903)Fair value adjustment on Investment property - - (1 688)Headline earnings attributable to ordinary shareholders 39 594 16 768 21 448

Abridged income statements

Unaudited30 September

2007R’000

Unaudited30 September

2006 R’000

Audited31 March

2007R’000

ASSETS

Non current assets

Property, plant and equipment 69 712 28 420 39 099

Goodwill 12 305 3 773 3 773

Deferred taxation 3 289 4 685 3 114

Current assets 471 019 298 709 308 458

Current tax receivable 581 - 286

Inventories 154 024 55 129 90 533

Non-current assets held for resale - 1 000 3 000

Derivative financial instruments 2 478 50 516 5 726

Trade and other receivables 303 681 170 772 185 755

Cash and cash equivalents 10 255 21 292 23 158

Total assets 556 325 335 587 354 444

Abridged balance sheet

Unaudited30 September 2007

R’000

Unaudited30 September 2006

R’000

Audited31 March

2007R’000

EQUITY AND LIABILITIES

Equity

Share capital 1 1 1

Reserves 1 474 2 375 1 474

Retained income 99 995 51 067 60 522Liability for the purchase of minorities 24 860 - -

Foreign currency translation reserve (960) - -

Total ordinary shareholders’ equity 125 370 53 443 61 997Minority interests - 14 691 18 622

Total shareholders’ equity 125 370 68 134 80 619

Liabilities

Non-current liabilities

Borrowings 21 510 18 486 15 143

Deferred tax 2 696 2 595 -

Current liabilities 406 749 246 372 258 682

Loans from shareholders 1 584 9 125 8 358

Current tax payable 18 382 10 670 9 619

Borrowings 1 722 818 1 458

Derivative financial instruments 2 552 45 839 5 759

Trade and other payables 165 641 76 546 105 009Vendors 36 253 - -Bank overdraft 180 615 103 374 128 479Total equity and liabilities 556 325 335 587 354 444

Number of shares in issue 616 854 996 616 854 996 616 854 996Net asset value per share (cents) 20.3 8.6 10.1Net tangible asset value per share (cents) 18.3 8.1 9.4

Abridged balance sheet (cont.)

Unaudited30 September

2007R’000

Unaudited 30 September

2006 R’000

Audited31 March

2007R’000

Balance at beginning of period 61 996 37 694 37 694

Total earnings after minorities 39 474 16 768 25 039

Revaluation - (313) 380

Dividends - (705) (1 117)

Liability for minority purchase 24 860 - -

Currency translation differences (960) - -

Balance at end of period 125 370 53 444 61 996

Abridged statements of changes in equity

Unaudited30 September 2007

R’000

Unaudited30 September 2006

R’000

Audited31 March

2007R’000

Cash flows from operating activities (51 571) (3 346) (13 986)

Cash flows from operations 47 576 26 723 38 606

Changes in working capital (99 147) (30 069) (52 592)

Cash flow from investing activities (15 729) (14 320) (22 957)

Cash flow from financing activities (576) 5 327 1 364

Net increase in cash and cash equivalents (67 876) (12 339) (35 579)

Cash and cash equivalents at beginning of period (105 322) (69 743) (69 743)

Cash and cash equivalents at end of period (173 198) (82 082) (105 322)

Abridged cash flow statements

Unaudited30 September 2007

R’000

Unaudited30 September 2006

R’000

Audited31 March

2007R’000

Gross revenue

Stockists 250 047 135 386 299 302

Bulk Sales 189 311 161 074 334 556

Exporting 190 535 109 093 237 707

Other 6 432 465 5 338

636 325 406 018 876 903

Profit before interest and taxation

Stockists 24 186 11 503 23 303

Bulk Sales 15 373 13 311 23 127

Exporting 28 172 6 847 10 624

Other (1 689) 2 886 6 650

66 042 34 547 63 704

Abridged segment report

General market overview

1. INFRASTRUCTAL SPEND

• SA Government committed to spend R400 billion on public infrastructure over next 3 years

• Eskom , Transnet and Spoornet committed to address back log on infrastructure, ports, pipelines and rail

• Significant capex by mines, both in SA and Copperbelt

2. ONGOING ORGANIC GROWTH IN EXISTING SECTORS

3. GENERALLY STRONG DEMAND EXPECTED 5-7 YEARS

Growth strategy

• Sustainability is underpins our strategy

• RSA Growth sectors:

• Construction, mining & automotive

• Geographical growth

• Exports : Zimbabwe, Mozambique, Botswana, Namibia & Malawi

• Others SA Centers will be considered

• New products – plate & structural steel

• Acquisitions

• Explore BEE opportunities – Govt. Tenders etc

• NOTE – BSI HAS 2.3% OF THE SA MARKET

Turnover 1986 to 2008

Thank- you for your participation

For further queries please contact our Head office on +27 (0) 33 8462227