Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (June 2007)
34 slides from Bluescope Steel's investor presentation, Jun 27, 2007
Slide 1: ye, pe
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Slide 2: Important notice
Important notice THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT B
Slide 3: SINDOMALAY management team
_ SINDOMALAY management team BlueScope SINDOMALAY Structure Indonesia&Malaysia President Rob Crawford PA Murtafiah VP SHE Py] Hani Abubakar [ I I I I I ] President President VP Finance ‘VP Information System | | VP Markefing & Solution President President Technical Service BL BSI Steel Coated Mike M
Slide 4: Our Indonesian midstream
_ Our Indonesian midstream President Director BSI Steel Coated Indonesia Sulfianda Soeleiman VP. Sales Harsono Mintono VP. Supply Chain lwan Gandamulya Marketing Manager Desiree Hastarina HSE Manager Richard VP. Commercial Gregory Widjaja VP. HR & EA Wahyudi Wibisono VP. Manufacturing Abdullah Lubis
Slide 5: Our Indonesian downstream management team
- Our Indonesian downstream management team oo Petronella Samosir Willius Suwandana Customer Services Manager & MR President Director Surono SHE Manager Vacant Commercial Manager Elisbeth Okmisila Log & Supply Chain Manager Rusnina Isfandiari Harry Trenggana HRD Manager Manufacturing Manager Henry C
Slide 6: Our business in context
- Our business in context “indi @ BlueScope Steel Indonesia (Metallic coating and painting facility) @BiueScope Lysaght Indonesia — Rollforming facilities and Sales Offices @ BlueScope Steel indonesia - Sales Offices BiueScope Lysaght Indonesia - Sales Offices Pages
Slide 7: Our business in context - Midstream Growth
Our business | in context- Midstream Growth _— ‘coomr Domestic Mid Stream Sales Growth 0) a 120, 100, 805 60, 40, 2006
Slide 8: Midstream Growth - metal roofing sheets
| ‘Midstream Growth - metal roofing sheets Our largest customer in Indonesia, PT Tatalogam Lestari, produces metal roofing sheets from our products. Ragat Source: PT Tatalogam Lestari
Slide 9: Page?
Source: PT Tatalogam Lestari Page?
Slide 10: Our Business in Context - Downstream transformation
Our Business in Context - Downstream transforma i a ue Jin 20 003
Slide 11: Our Business in context - Financial Performance
~ Our Business in context - Financial Performance _ Prime Total Despatches (tonnes 000’s) «Domestic 67 79 94 97 56 "Export 17 13 7 i 0 Total 84 92 101 98 56 External Sales Revenue (A$m) Total Sales 110.7 114.8 149.2 160.2 91.4 EBIT 11.7 15.1 17.4 18.7 9.0 (A$m) Net Operating Assets 74.2 91.1 95.4 13
Slide 12: History - growing and adapting to the market
Slide 13: Economic Outlook - Indonesia has delivered over last 10 years
_ Economic Outlook - inonesia has delivered over last ip years, year on year * Economy » Largest SE Asian economy » GDP expected to increase to around 6% “We expect annual growth to accelerate to...6.3%. (EIU) » |MF has pulled out as its help is no longer needed » Inflation and interest rates back t
Slide 14: Indonesia Low Steel Intensity - Upside opportunity
Indonesia Low steel Intensity - Upside opportunity Steei Consumption Capita 4,000 aoe Tawar Inter-material Share * Korea. nada ‘ © aig’ Japan Construction Segment 2005 - ¢ USA. Germany O. Malaysia’ * Saudia Arab 100 © Ghing 0 Thattand nna Timber 25% © Philippines @ indonesia 10 ° Includes roof cladd
Slide 15: Midstream Coating Business in more detail
"Midstream Coating Business in more detail
Slide 16: LTI Free for 4.5 million hours (5 years)
LTI Free for 4.5 million hours (5 years) Employee audits @ 179% with 539 audits for May 2007 BlueScope Steel Zero Harm - Best Safety Award in 2006 President of Republic Indonesia Zero Harm Award in 2006 100% Environmental Compliance Excellent Safety & Environmental Performance Frequency Rate 2000 20
Slide 17: BSI is the only Zinc/Aluminium coated steel manufacturer in Indonesia
~ BSI is the only Zinc/Aluminium coated steel manufacturer in Indonesia _ > Established in 1994 > Well-known product brands: > ZINCALUME® , > Clean COLORBOND® ; > GALVALUME® > Other products to adapt to local market needs > PELANGI®, > GEMILANG®, > ABADI®, > INTERIOR®, > INDAH®, > TEXTURA®, > PERISA
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Slide 19: Our Material
Our Material . _ Industtial Finished Metal Comes : (Roofing! Walling) Produced CRC “alll Metal” Indonesian Hig Residential: ex-PT Krakatau Steel >-ESs Domestic mm) (Vetal Tiles, Customers: Trusses& Imported CRC é ex- BSL Australia 7” {incl Lysaght) Imported Semi-Finished : Metal Coated : ex-BSM/BSV#
Slide 20: Current Source
Current Source 1. CRC from: » 90% from PT Krakatau Steel (PT KS) (located directly next to BlueScope Steel Indonesia operation in Cilegon) * 10% imported from BlueScope Steel Australia and other sources 2. Other materials * — Zinc from Korea Zinc (Korea) * — Aluminium from Comalco (Australia) * Pain
Slide 21: PT Krakatau Steel - main CRC feed supplier
PT Krakatau Steel ~ main CRC feed supplier Long term relationship between BlueScope Steel and PT KS PT KS was a joint venture partner in BSI Modern upgraded CRM facilities (>1 million tonnes per annum | capacity) Quality of CRC is excellent Close working relationship — collaborative supply arrangeme
Slide 22: Operations at full capacity
ae oN operations at full pa ous on Deng Status ” Metal coating line no. 1 (MCL1) and paint line no. 1 (CPL1) at full capacity ” Product being imported from other BlueScope Steel Asian operations to support market Challenges " More light gauge production capability required # Market growth Initiative
Slide 23: and our focus is delivering results
and our focus is delivering results _ Records in May 2007 Driving Our Future The essential platform that underpins all manufacturing activities Learning from within, learning & sharing with others “Can-do” adaptive attitude Skill focus Focus on uptime Focus on Prime First Time Maximising asset perfo
Slide 24: Manufacturing Excellence - Stunning Uptime Improvement
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Slide 25: Construction investment and market share growth
——Residental lon-Residenfal mee (ivi Engineering Construction Investment - Constant US$ Million * Building & construction sector accounts for 99% of sales " Approximately 50/50 split between industrial & commercial and residential segments " Market share is growing through industry leadership in int
Slide 26: Market needs met mostly through local producers
"Market needs met mostly through local producers Steel component of industrial / commercial construction segment (sales volumes) ~ indicative relationship between local suppliers vs. imports ProductMix = |= Principal Suppliers _ ==Domestc jj. ===#=#=#=iImports Metal Coated 0 f BB% Source
Slide 27: Customer events and CRM
psyoa/ 2006 Indonesian Architect Assc. Seminar Australian Building Exhibition CRM (Customer Relationship Management) Customer Gathering
Slide 28: End product applications in the local market - some examples
_ : End product applications in the local market . some examples . am ee Innovative, well-proven products
Slide 29: BlueScope Steel Reconstruction Projects in Aceh and Yogyakarta
BlueScope Steel Reconstruction Projects in Aceh and Yogyakarta | bSchools Donated by aid4 550 Schools Donated By World Vision
Slide 30: Our Expansion Plan
Our Expansion Plan = Total investment to construct second metallic coating line with in-line painting is US$113 million (US$ 12 million already spent). = The new line will be dedicated to produce BlueScope Steel’s thin gauge (0.2 -0.4 mm) coil. = The existing metallic coating line will consistently
Slide 31: The new capacity
—— Thenew capacity Metallic Coating Line Painting Line Current Capacity (MCL1) 100,000 tonnes 40,000 tonnes* Incremental improvement 35,000 tonnes 20,000 tonnes through optimising line loadings at no cost Plus new line (MCL2)** 130,000 tonnes 100,000 tonnes (Max 170,000 bare tonnes) Total 265,000 to
Slide 32: Our focus going forward
Our focus going forward ZERO HARM a VOLUME wn CUSTOMER, SERVICE MARGIN MANAGEMENT Grow Sales / Markets + Support our customers growth + Introduce new products + Support Government programs + intra-material conversion + Grow channels Grow Supply Capacity +import BSL coated products to satisfy market
Slide 33: Summary of BlueScope Steel Indonesia
ummary of BlueS During the last 5 years, BSI coated has enjoyed sound year on year growth BSI is now at full capacity in a growing market We have an optimistic outlook with a more robust economy and stable democracy. BSI is the leading coated steel producer in the fourth most populous country in the
Slide 34: ye, pe
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