Corus Group

2007 First Quarter results

 Corus’ Q1 2007 results

• Preliminary unaudited results for the 3 months to 31

March 2007
• Prepared under International Financial Reporting
Standards as applied by Corus at December 2006
• No fair value adjustments or related items arising from
the acquisition

1
Continuing operations
Key highlights
Underlying Operating Profit* £m EBITDA* £m

430 699
Q4 61 Q4 127

Q3 168 Q3 235

Q2 126 Q2 193
184 254
Q1 75 Q1 144
2006 2007
2006 2007 2006 2007

Net debt £m Steel deliveries (mt) **

746 20.9
Q4 5.2
564
Q3 5.2
Q2 5.4

Q1 5.1 5.6

Dec 2006 Mar 2007 2006 2007

2006 2007
* Continuing operations. Before restructuring, impairment and disposals.
Excluding non-recurring pension credit of £96m in Q1 2006 and transaction costs of £77m in Q4 2006 and
£58m in Q1 2007. 2
** Includes Teesside slab deliveries to the consortium of 0.4mt in Q1 2006 and 0.6mt in Q1 2007.
Group income statement
IFRS £ million Q1 2006 Q1 2007

Continuing operations
Turnover 2,289 2,711
EBITDA* including: 240 196
Non-recurring pension credit (96) -
Transaction costs - 58

Underlying EBITDA * 144 254

EBITDA margin (%) 6.2 9.4

Operating profit before restructuring,

171 126
impairments & disposals
Restructuring, impairments & disposals (net) 5 (1)
Group operating profit 176 125

* Before impairment, restructuring and disposals 3

Group income statement
IFRS £ million Q1 2006 Q1 2007

Group operating profit 176 125

Net finance costs including: (116) (22)
Premium to redeem 2016 debenture (87) -

Fair value of equity options on convertible bonds (11) (8)

Joint ventures & associates 1 4

Profit before taxation 61 107

Taxation (28) (19)
Profit after tax - continued ops. 33 88
Profit after tax - discontinued ops. 12 -
Profit after tax 45 88

4
 Divisional performance

£ million Growth
Gross
Q1 2007 Revenues Volume Price
revenues
Strip Products 1,426 6% (3)% 10%
Long Products 726 12% 2% 10%
D&BS 840 24% 14% 8%
Margin Operating RONA
EBITDA*
(%) Profit * (%) **
Strip Products 196 13.7 150 14
Long Products 46 6.3 27 8
D&BS 22 2.6 18 19

* Before impairment, restructuring and disposals

** Last twelve months underlying operating profit/average net assets (excluding net debt) 5
 Group operating result*
Q1 Operating bridge 2007 vs 2006
Continuing operations - £ million

400

350 Sales Input

Mix costs
300 Sales
Price
250
Volume/ Transaction
Non-recurring Other costs
200 Pension credit Manuf

150 Aluminium

Q1
100 2006 Q1
£171m £184m
2007
50 £75m £109m £126m

£109m underlying increase in profitability

* Before impairment, restructuring and disposals 6
Group cash flow
Movement in cash & cash equivalents
£ million £(97)m
1,200 Operating activities

Working
Operations capital
1,000
£(248)m
£179m
£(257)m Interest and
800 Tax
Investing
activities
Financing
£(86)m activities
600 Opening
Dec 2006
£798m Closing
400 Mar 2007
£607m

200 £(191)m

7
All operations
Working capital
Inventories £m Carbon steel inventories kt
Slab stock build for IJmuiden re-line
2,250 4.00
3.8
2,012
2,000 1,890
1,858
3.50 0.5
1,750 3.6 3.7
3.3
1,500 3.00
March 2006 Dec 2006 March 2007 March 2006 Dec 2006 March 2007

Trade Receivables / Payables £m Total working capital % Turnover*

Receivables Payables 19.3

20
2,000
17.1
1,000 1,669 1,683 1,960
15.0
0 15
-1,000 1,859 2,017 2,118
-2,000
mar2006
06 dec2006
06 mar 2007
07
10
March Dec March March 2006 Dec 2006 March 2007

* Last 3 months turnover annualised 8

Net borrowings
£m Dec 2006 Mar 2007

Opening net debt (881) (564)

Movement in cash and cash equivalents 104 (192)
Net movement in short-term investments
16 13
and debt
Effect of foreign exchange rate movements 5 (5)
Other movements 192 2
Movement in net debt 317 (182)

Closing net debt (564) (746)

9
Pensions
£m Dec 2006 Mar 2007

BSPS Surplus 362 508

SPH Scheme Surplus 85 46
CESPS Scheme Deficit (117) (95)

Group’s main funded schemes 330 459

Total unfunded German schemes (51) (50)
Other schemes (29) (24)

Sub-total pension assets 250 385

Post retirement benefits (11) (10)

Total net retirement assets 239 375

10
Balance sheet
Dec 2006 Mar 2007

Non-current assets 3,668 3,774

Current assets 4,421 4,635
Assets held for resale 1 1

Total assets 8,090 8,410

Current liabilities (2,348) (2,466)

Non-current liabilities (1,797) (1,769)

Total liabilities (4,145) (4,235)

Net assets 3,945 4,175

11
Summary
Market
• European crude steel production up 5% in Quarter 1 2007 at 53.8mt
• Positive European demand outlook continues
• 5-7% price increases secured for Quarter 2
• Further cost pressure, particularly iron ore, freight & LME metals partly
offset by coal and energy cost reductions
Performance
• Major capex & restructuring programme underway & on track in Quarter 1
to deliver planned improvements:
– Port Talbot to 5mt slab output by end 2007
– £130m strategic investment at Scunthorpe: 120m rail, increase
premium wire rod sales (tyre cord) & increased section capacity &
quality
– £153m strategic investment at IJmuiden: new cold mill & galvanising
line
Q2 Outlook
• Further positive momentum expected 12