CSR : Chair and MD addresses to shareholders

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CSR Limited

Triniti 3 39 Delhi Road

North Ryde NSW 2113

Australia

T [phone]

F [phone]

[e-mail]

www.csr.com.au

ABN 90 000 001 276

30 June 2022

Mr Justin Nelson

Principal Adviser - Listings Compliance

Australian Securities Exchange

Exchange Centre

20 Bridge Street

Sydney NSW 2000

Dear Justin,

CSR Limited (CSR) 2022 Annual General Meeting

CSR's Annual General Meeting (AGM) will be held today, commencing at 10:00am (AEST) Thursday 30 June 2022.

Please find attached:

1. Chair's address;
2. Managing Director's address; and
3. Accompanying presentation slides.

The AGM will be held as a hybrid meeting providing shareholders with an opportunity to attend in person at The Northside Conference Centre, Corner Oxley Street and Pole Lane, Crows Nest, Sydney NSW or to participate online.

The AGM is accessible to shareholders, proxy holders and guests by video webcast available from CSR's website at https://www.csr.com.au/investors-and-news/webcasts.

Shareholders are able to vote and submit questions in real time during the meeting, by accessing the online meeting platform at https://meetnow.global/MDGVSA2. Shareholders will need to enter their SRN/HIN. Appointed proxy holders will need to contact Computershare Investor Services on [phone] to obtain a username and password, to be able to vote and submit questions during the meeting.

Detailed instructions on how to participate in the meeting are available on CSR's website at https://www.csr.com.au/AGM2022.

We look forward to engaging with shareholders duing the meeting.

Yours sincerely

Jill Hardiman

Company Secretary

This announcement has been authorised for release by the Company Secretary.

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CSR Limited

Triniti 3 39 Delhi Road

North Ryde NSW 2113 Australia

T [phone]

[e-mail]

www.csr.com.au

ABN 90 000 001 276

CSR Limited Annual General Meeting

30 June 2022

Chair's Address

by John Gillam

Good morning everyone

I am pleased to be with you today to report on the strong performance and position of your company.

SLIDE - Group results

Reflecting on the period from April 2021 to now, the CSR team deserve great credit for working through all manner of significant business-wide challenges - including the worst of COVID restrictions and lockdowns - to maintain excellent product flow to customers, whilst also well advancing the longer-term strategic agenda.

The health and safety of our employees, contractors and customers is an overarching priority and, in a very disrupted environment, we saw a pleasing improvement in our safety performance with more improvement actions planned.

Before commenting on CSR's performance and direction, I want to acknowledge how difficult current operating conditions are for many builder customers due to scarcity of skilled labour, and materials such as timber combined with inflationary pressures. The one shining light for the housing construction sector is the underlying strength of demand and I'll talk more to that point shortly.

For the financial year ended 31 March 2022, CSR delivered a strong operational and financial performance, increasing group earnings for the second consecutive year with a

20% lift in net profit after tax (before significant items). The growth in net profit was driven by a 24% increase in Building Products earnings to a record $228 million reflecting our ability to drive higher output to meet strong market activity and backing this up with good production performances and sensible cost discipline.

Our property business delivered earnings of $47 million as it continues to successfully manage complex long-term development projects. Aluminium earnings were up 70% to $40 million following improved pricing. We have hedging in place over the next five years that reduces volatility and provides greater visibility of future aluminium earnings.

While we are very pleased with both the results for the year and the overall advances made in implementing CSR's strategic agenda, since the results were announced in mid May, CSR's share price has been under pressure to a greater extent than the recent market-wide decline.

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While there may be differing views on the outlook for the construction market as well as the broader Australian economy, we remain very positive about CSR's prospects for three key reasons. Firstly, the strength of underlying demand for building products. Secondly, the strong progress made within the business to increase earnings diversification, and, thirdly, the strength of contracted earnings from CSR's property business. I'll provide some more detail on each of these.

SLIDE - Detached housing pipeline

There is strong underlying demand for building products, and this is expected to extend through our current financial year and well into CSR's next financial year.

The significant housing construction demand linked to Homebuilder approvals is well documented and we have been working through this pipeline with our customers over the past two years. Concerns that the completion of this activity would create a gap in the market are misplaced and we are seeing the pipeline of house building activity continuing to be filled by current approvals.

For example, the size of the current pipeline for detached housing is 50% higher today than the pre-COVID average and represents a full year of housing activity before considering any future fresh approvals. Approvals recorded in each month will extend the activity pipeline further into the future.

And today's identifiable pipeline for housing construction - be that detached, semi-detached or high-rise - does not reflect any material activity associated with a likely recommencement of immigration to pre-COVID levels, nor any new state government ambitions for social housing and possible fresh "affordable housing" government initiatives. Any of this activity that materialises will strengthen and lengthen the housing construction pipeline.

In addition to housing construction demand, recently announced state government budgets contained considerable expenditure plans with programs for new and refurbished facilities in healthcare and education. This will heighten building products demand in the wider commercial markets.

SLIDE: CSR strategy

We are also pleased with how well the business is progressing its strategy to increase the diversification of earnings and grow market share in new segments.

A key part of our strategic agenda is to build on our strong position in the detached housing market and diversify into other construction sectors. This is a critical activity that ensures real growth and also enhances our resilience, with an ability to maximise opportunities through changing construction cycles.

At present, over 45% of our earnings are from non-detached housing segments and we are actively building our presence in the wider housing and construction segments.

The outlook for these markets is positive, with growth in multi-res approvals and in the levels of forecast starts, work done and completions. Non-residential markets are also improving with approvals still growing and running well ahead of work done. And as I noted earlier, there are substantial state programs in broad social infrastructure areas. We expect strength in these wider markets to continue supported by the re-opening of international borders and a return to normal commercial activity.

By leveraging the breadth and quality of our product range we can serve customers through key phases of the build process from external cladding and roofing to interior linings and

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energy efficiency systems. This increases the diversity of our business and builds market share across more sectors such as aged care, healthcare, education and infrastructure.

A good example of this work is at the new Sydney Football Stadium which I visited recently and which includes a range of our products and systems across Gyprock, Cemintel, Martini, Himmel and Rondo.

A key point of difference for CSR is that we can bring an integrated solution to customers. A stronger focus on doing that better than ever underpins our ambition to grow share in new segments.

SLIDE: Property pipeline

The third area to highlight is the strength of CSR's property portfolio which will deliver significant value for CSR over many years. The immediate three-year outlook from our property business includes contracted earnings of over $150 million

The most significant contribution to earnings this year will be the industrial development at Horsley Park in western Sydney. This former bricks site operated for over 50 years before becoming surplus to our requirements. Our Property team led a very complex rehabilitation process to regenerate the site for industrial use and deliver an amazing result for CSR.

In addition to the disclosed three-year contracted earnings outlook, we are also working on a number of new projects such as the development of a 20 hectare site at Darra in Queensland which, subject to development approvals, is well positioned to add earnings to the near-term Property pipeline.

Our Property portfolio also extends well beyond a 10 year horizon which includes the 200- hectare site at Badgerys Creek adjacent to the new Western Sydney Airport. This site is of significant strategic importance in this region and we are actively progressing rehabilitation works, while also assessing structuring opportunities.

The strength of our development capability, rehabilitation expertise coupled with strong demand for industrial sites in western Sydney has significantly increased the valuation of our Property portfolio which is well positioned to deliver strong returns over the next ten years and beyond as shown on the slide.

SLIDE: Capital management slide

From an overall group perspective, CSR continues to maintain a very strong financial position which is supported by the pleasing operational performance and cash flows. This has enabled the company to pay dividends at the top end of our range of 60-80% of net profit after tax (before significant items). Total dividends for the financial year of $153 million with full franking were declared. This compares to total dividends of $177 million in the previous year which included the payment of two special dividends.

CSR has a strong balance sheet, which supports continued investment in the growth and performance strategy for our Building Products business. We are also progressing major property development projects that will deliver short and long-term earnings alongside the hedged Aluminium position.

We are really excited about the opportunities to invest for growth in Building Products and Julie will outline our investment plans to you in more detail. We also look to increase shareholder returns through capital management initiatives where appropriate, in addition to dividends.

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Today we are pleased to announce that we will commence an on-market share buyback of CSR's shares of up to $100 million. Shareholders will recall that we previously had an on-market share buyback in place in the 2019 and 2020 financial years.

The work over the last few years to improve our operations and optimise performance has delivered increased returns to CSR. This has positioned us well to maintain a strong balance sheet while investing in our strategy and improving shareholder returns.

It is also worth noting that despite the operational challenges faced over the last two years, we have also been active in continuing to progress better environmental outcomes and Julie will talk in more depth on this important work.

In closing, I want to return to the performance of the CSR team led by our CEO Julie Coates in what has been a very busy and challenging year. Each day our teams are working diligently with our customers to help support their needs.

We also have our eyes firmly fixed on the future, with more opportunities to grow CSR's portfolio of products and systems across new construction markets. Our business is more resilient today with operational and cost discipline an ongoing focus and we are confident about the company's ability to perform very well into the future.

On behalf of the board, I want to sincerely thank all of CSR's 2,500 employees for the tremendous efforts this year, for supporting each other and for looking after our customers.

And finally, I want to also thank all shareholders for your continued support of CSR.

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