CSR LIMITED 2003 FULL YEAR RESULTS

Highlights of the full year ended 31 March 2003

1. Record operating result for CSR Group including RinkerGroup Limited (Rinker).Earnings beforeinterest and tax before significant items (EBIT) up 5% to A$974 million

2. Demerger of Rinker from the CSR Group completed

3. Share buyback announced for 5% of CSR Limited shares

4. Final CSR dividend declared of 6 cents per share

5. Following the demerger, CSR is well positioned to buildadditional value for shareholders through strong cash generation and low riskgrowth

CSR Limited financial results

Because the demerger of Rinker was finalised at the financial year-end of 31 March 2003 (YEM03), the statutoryaccounts for the CSR Group for the year include the results for both CSR andRinker.The CSR Group’s net profitbefore significant items was A$561 million, in line with the previousyear.The Group’s earnings beforeinterest, tax and significant items increased by 5% to A$974 million.Earnings from each CSR Group businessimproved, but the stronger A$ negatively impacted the translation of RinkerMaterials Corporation earnings into A$.The net profit after tax to the CSR Group includes the significantprofit resulting from the demerger of Rinker.This significant profit was distributed to CSR shareholders in the valueof shares in Rinker.

#Includes the significant net profit aftertax of A$1,493 million resulting from the demerger of Rinker based on theexcess of fair value over book value of Rinker assets, less the transactioncosts of the demerger.

Overview

“The year just concluded has been one of major achievementand change for CSR,” said CEO and Managing Director Alec Brennan. “In additionto successfully completing the demerger of Rinker, we delivered a recordoperating result.CSR’s focus goingforward is to build additional value for shareholders in its three remainingbusinesses in building products, aluminium and sugar.”

Pro-forma2003 results for CSR and Rinker

The results outlined below represent the pro-forma resultsfor the CSR and Rinker businesses for the year ended 31 March 2003.The pro-forma allocations of corporate costsand interest expense included in these separate operating results areconsistent with the normalisation adjustments included in the demergerexplanatory booklet.In future, CSR andRinker will report separately.

Pro-forma2003 results for CSR and Rinker

Financial position

Profitability– before significant items

1 Pro formaforecasts as outlined in the demerger explanatory booklet dated 7 February2003.

2 CSR’s taxrate of 25% reflects benefits of property profits which were subject to a lowereffective tax rate.

3 Netprofit is based on normalised net finance expense after tax for CSR and Rinkeras per the demerger explanatory booklet.Most of the CSR Group's debt was held in Rinker Materials during theyear, so Rinker's actual finance cost was higher. The Rinker net profitis A$382 million without the normalised allocation of finance cost.Further information can be found in Rinker’sPreliminary Final Report for the Year Ended 31 March 2003.

CSR – now focused on building products, aluminiumand sugar

Withthe demerger, CSR is a diversified manufacturing company with three businessesin Australia in building products, aluminium and sugar. These businesses allhave leading or established positions in their respective markets, togetherwith a history of stable total returns and strong cash flow generation.

Performance in the past year –improved profits from Building Products and Aluminium

BuildingProducts lifted EBIT by 10% to A$120 million on 11% higher trading revenues ofA$896 million. Activity levels in the new housing market were stronger thanexpected during the past year but extra costs were incurred in meeting customerrequirements. As a result profit performance was lower than expected for theincreased level of activity.

Aluminiumincreased EBIT by 15% to A$126 million on revenues of A$447 million in linewith the previous year.Increaseddemand from Asian markets resulted in record sales, although market pricing wasdown. The strong result was underpinned by prior year hedging of exposure tothe price of aluminium and the US$/A$ exchange rate.

Sugarachieved a result slightly below last year with operating profit of A$71million, resulting from an improved sugarcane crop offset by lower raw sugarprices.This result includes a write-downof A$13 million in assets associated with production of low colour sugar at thePlane Creek mill as there is no longer a viable market for this product. Whilethe international market for raw sugar continues to be difficult, we are seeingbenefits from productivity improvements underway in CSR’s milling regions.The long term aim is to achieve asustainable 20% improvement in sugar yield.

Financial position

CSR’s balance sheet remains strong with net debt ofA$226 million at 31 March 2003 following the demerger.Gearing (net debt/net debt plus equity)reduced to 16.4% consistent with the demerger explanatory statement.CSR’s long and short term credit ratingswere maintained at investment grade, although reduced slightly due to thesmaller scale of the businesses.

Dividend and share buyback

The directors have declared a final dividend of 6cents, payable on 3 July 2003 with franking to be maintained at 70%.Rinker has also announced a 2003 finaldividend of 7 cents also franked to 70%. In addition, CSR directors have announced an on-market buyback of 5% ofCSR’s shares which aims to further enhance shareholder value.CSR will continue to explore capitalmanagement opportunities where these are seen to enhance shareholder returns.

Strategy

CSRis now a smaller, more focused company.Further work is being undertaken to ensure that the cost structure andoperations are aligned to the requirements of the newly restructured group.With this background, CSR’s strategy is tobuild value for shareholders from its three businesses by pursuing thefollowing initiatives:

1. Creatinga safe and satisfying work environment for our employees

Safetyperformance has improved significantly over the past 12 months. The totalrecordable injury frequency rate improved by 23% in Building Products and Sugarcompared to the prior year. CSR continues to focus on improvements in safetyperformance.

2. Meetingour customers' needs

We continueto look for better ways to serve our customers competitively and professionallyto ensure we are the supplier of choice.A key step in this process is ongoing communication with customers andthe introduction of SAP computer systems to improve customer service levels.

3. Improvingefficiency and productivity

EachCSR business is committed to ongoing productivity improvement. Last year, theoperational improvement program delivered A$15 million in savings for theongoing CSR businesses and there is further scope for improvement. Systems arein place to ensure performance improvement is closely monitored and sustained.

4. Pursuinglow risk growth opportunities

CSRis seeking low risk growth opportunities in each of its three business areas.For example, CSR has the option to participate in a 15% production expansion ofthe Tomago aluminium smelter that is currently under way. The cost ofparticipation is around A$75 million and a decision is required byNovember 2003.

CSR is also exploring a further investment inelectricity co-generation at one of its sugar mills in North Queensland. Theelectricity, generated from renewable waste sugarcane fibre, would be sold intothe Queensland electricity grid.

In building products, CSR is reviewing a number of opportunitiesto extend the company’s product range. In addition, CSR continues to look atrestructuring and acquisition opportunities to improve the performance of thebuilding products businesses, provided that these are value enhancing forshareholders.

Outlook for the year ahead

“Theoperating environment for CSR remains quite challenging as there are a numberof uncertainties that can impact performance,” said Mr Brennan. “We expect aslowdown in CSR Building Products’ residential building markets, although thisshould be offset to some extent by an increase in activity in the alterationsand additions market and the commercial construction sector.

“WithinCSR Sugar, while the Burdekin crop prospects are good, lack of rain remains aproblem in other Queensland regions and a continuation of this trend may havean adverse impact on the 2003 sugarcane crop prospects.However, we expect to see continuingbenefits from the productivity initiatives underway across all ourregions.The sugar price outlook remainsuncertain as a result of low world raw sugar prices and a rising A$.

“Aluminiumis expected to perform in line with last year as the returns are wellhedged.

“Inaddition, we will receive some benefit from the development and sale of oursurplus property assets.

“Againstthis background, our goal is to achieve an operational result broadly in linewith last year for these businesses subject to an anticipated higher effectivetax rate.

“Ourpriority for the next year will be to optimise the performance of the CSR business portfolio todeliver additional value for our shareholders through strong cash generationcombined with low risk growth.”