Peter Kirby Managing Director and CEO

1
Introduction

• Peter KirbyManaging Director and CEO
• Analyst Presentation10 February 2003

2
Agenda

• Introduction
• - Peter Kirby
• MD CEO, CSR Limited
• CSR Limited
• - Alec Brennan
• MD CEO, CSR Limited (post-demerger)
• Deputy MD and Director Strategy
• Investments, CSR Limited (currently)
• Rinker Group Limited
• - David Clarke
• MD and CEO Rinker Group Limited (post-demerger)
• Chief Executive, Rinker Materials Corporation
  (currently)
• Questions Answers

3
Timetable
4
Heavy building materials 70 of CSR group
earnings at end Sept 02 (business EBIT)
Y/E Sept 02
Y/E Mar 95
Sugar 6
Building Products Aust NZ Asia 13
Aluminium 16
Sugar 16
Construction Aust Asia 9
Timber 13
Aluminium 12
Building Products Aust NZ Asia 18
Rinker Materials (US) 18
Construction Aust Asia 19
Rinker Materials Corporation (US) 61 (pre
Kiewit)
Heavy building materials aggregates, concrete,
cement and concrete pipe products
Note Based on business EBIT from CSR Annual
Reports excludes corporate costs and unallocated
gains/losses (eg major land sales)
5
EBITDA margin cash flow up
Operating cash flow Am
EBITDA / Sales
20.9
20.8
19.9
19.7
1195
18.2
1048
1024
16.4
15.3
H Y E S 0 2
H Y E S 0 1
912
832
554
545
0 2
0 1
Net operating cash flow after tax
6
Financial ratios
Return on funds employed
Return on Equity
17.0
14.3
15.9
13.7
15.5
14.5
12.9
14.6
12.7
12.7
Y E S 0 2
Y E S 0 1
12.6
10.1
YES 02
YES 01
10.9
8.7
0 1
Excludes funds employed for Kiewit Materials
Corporation purchased 26 Sept 02 with no sales
or profit contribution during HYESO2
7
Strong financial position
Gearing (net debt / net debt equity)
Interest cover (times)
35.2
34.2
34.0
34.0
11.8
32.6
29.7
SEPT 02
SEPT 01
9.1
8.5
8.0
22.2
6.8
HY02
HY 01
5.3
4.3

• Includes Kiewit Materials. Red line shows the
  gearing ratio at 24 if Kiewit excluded.

8
Return on Equity
16.8
15.9
14.4
13.9
13.7
12.4
11.0
10.6
10.3
9.8
9.5
9.2
9.0
7.2
4.1
CRH
Holcim
Hanson
Cemex
RMC Group
CSR Limited
James Hardie
Boral Limited
Lafarge Group
Martin Marietta
Florida Rock Ind
Vulcan Materials
Texas Industries
Aggregate Indus.
Lafarge Nth Amer
Source Annual Reports
As at last reported FY to 17 Jan 03
9
Price/Earnings ratio
15.7
14.8
14.0
12.7
12.5
12.5
12.0
11.9
10.7
10.6
10.5
10.0
10.0
6.4
CRH
Holcim
Cemex
Hanson
RMC Group
CSR Limited
Boral Limited
Lafarge Group
Martin Marietta
Florida Rock Ind
Vulcan Materials
Texas Industries
Lafarge Nth Amer
Aggregate Indus.
Source Company records CSR research
Price at 17 Jan 03 / latest published annual
financial data
CSR Share price 6.13
10
EV / free cash flow
31.1
20.5
20.7
17.4
16.3
15.2
13.5
13.4
13.4
11.1
11.1
11.2
10.6
CRH
Holcim
Hanson
RMC Group
CSR Limited
Boral Limited
Lafarge Group
Martin Marietta
Florida Rock Ind
Vulcan Materials
Texas Industries
Lafarge Nth Amer
Aggregate Indus.
Source Bloomberg FCF is latest published
T12mths Share price as at 17 Jan 03. CSR 6.13
11
CSR group strategy a demerger into 2 different
companies is the logical next step to complete
the separation process
CSR group today
70
30
Based on YES02 business EBIT from CSR Annual
Reports excludes corporate costs and unallocated
gains/losses (eg major land sales)
12
Two strong Australian listed companies, appealing
to different groups of investors

• Rinker Group Limited (RGL)
• One of the worlds top 10 heavy building
  materials companies, growing strongly and
  building strong regional market positions in its
  key products

CSR Limited A higher dividend yielding,
diversified company, with a stable earnings
history, strong cash flows and some of
Australias best known household brands
13
Strategic rationale and benefits of a demerger

• In line with CSR strategy since 1998 for
  separation and growth of heavy building materials
  while lifting shareholder value
• Creates two strong, focused companies both
  investment grade, and expected to be in ASX Top
  100
• Precedents show step change in management and
  board focus lead to improved performance over
  time
• Improved ability to pursue growth options,
  including longer term flexibility for RGL equity
  as acquisition currency, if appropriate
• Separation offers a clear outcome and provides
  shareholder choice
• Dividend policy and capital allocation to better
  facilitate individual business strategies
• Clearer alignment of employee compensation plans
  with shareholder value for Rinker people
• Opportunity for stock market re-rating

14
Costs of the demerger

• Transaction cost of 75 million before tax or
  est. A54m after tax, ie a one-off impact of 5.8
  cents per share
• adviser, legal and expert fees, stamp duty,
  insurance (A32m)
• once-up cost of establishing RGL as a separate
  entity (A28m)
• refinancing costs (including restructuring US
  bonds) (A15m)
• Lower LT credit ratings but ratings agencies have
  indicated investment grade for both RGL and CSR
• Short term impact on CSRs ability to pay
  fully-franked dividends Rinkers franking
  capacity will be lower but solid earnings from
  Readymix will underpin franking for shareholders
• Post-demerger, additional cost of RGL and CSR
  operating as independent, separately listed
  companies

15
In summary

• Improved performance over past 5 years
• Further opportunity to enhance value with a
  demerger
• Two strong companies both likely investment
  grade, history of solid cash flows, leading
  market positions, strong management proven
  performance versus peers
• Expect CSR to be a higher yield stock Rinker a
  growth stock
• Rinker growth plentiful bolt-on opportunities,
  solid acquisition track record and financial
  strength to support funding
• CSR growth sensible growth options to
  supplement performance improvement focus
• Objective to deliver further value to current
  shareholders