Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (November 2004)
63 slides from Bluescope Steel's investor presentation, Nov 12, 2004
Slide 1: BlueScope Butler
4 BLUESCOPE BUTLER
Slide 2: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 2 BiueScope Butler ap BLUES COPE BUTLER
Slide 3: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 3 BiueScope Butler ap BLUES COPE BUTLER
Slide 4: Development of BlueScope Butler
opment of BlueScope Butler 1992 —- Opened representative office in China 1995 - Registered a wholly owned venture 1996 - Built our plant in Shanghai 2001 - Expanded Shanghai facilities to include beam manufacture 2002 - Built our second plant in Tianjin 2004 — Commenced construction of beam facility
Slide 5: No Lost Time Days
MLD! == No Lose Time Days 45 4 2;704— 3000 Efficient work but where is safety ? Days OF LDI Days Lost Time Days Structural Maintanance 5 Rolling Shipping Line Lines Stations Decrease shipping costs ? : BiueScope Butler BLUES COPE BUTLER
Slide 6: Regular safety meetings & reviews
Regular safety meetings & reviews Clear safety regulations Implementing BlueScope Steel Safety management System OOO oO Company sponsored annual medical checkup for employees aged 30 years and over & “, BLUES COPE BiueScope Butler BUTLER
Slide 7: Customer project process
Customer Tour Owner’s Concept Manufacturing Final Contract Design team ont develops fully Negotiation engineered solution i Deliver a high Detailed ; discussions to quality, complete finalise | building solution project design 100% Customer Satisfaction BiueScope Butler BUTLER
Slide 8: Value engineering building solution
Value Engineering Building Solution Aanufacturing Project Managemen ransp porauon BiueScope Butler BUTLER
Slide 9: Key Success Factors to Date
"Key Success Factors to Date. GiveScope Butiers Name Our Core Strength 9 BLUES COPE BiueScope Butler BUTLER
Slide 10: Perfect timing to enter the market
Perfect timing to enter the market * Massive industrial developments * Foreign Investors rushed into China * The market's appetite for quick Construction, economical solutions and quality solutions Positioning ourselves in the Market * Right Setup and solutions for the market need * Quality solution
Slide 11: Right Approach to the Market - Total construction solution
Right Approach to the Market - Total construction solution 4} Promote our strengths and the Difference - whole system solution that has stood the test of time Single Source BiueScope Butler BUTLER
Slide 12: Right Approach to the Market - Total construction solution
‘Right Approach to the Market - Total construction solution QO) O) O) O O QO Select the right products / solutions Hire the right people Build state of the art facilities Set up effective processes Transferred the best our culture from Butler USA Adopted the best of the local culture 2 a “, BLUES CO
Slide 13: Number 1 in PEB and 3rd Overall in Metal Construction in China
‘Number 4 in PEB and 3° Overall in Metal Construction in China Sales Ranking for Metal Structure Industry (1999 -'2003) Company Names. Ranking Sales PEB 2003 2002 2001 2000 “1999 | 2003 2002 2001 2000 1999 Ranking |Piangnan Heavy industry Co. Lid. 7 5 S| 1,040,873 | 467,736| 411,984| 348,528] 425,89
Slide 14: External Coil
External Coil Customers Majority locally Produced Metal cRC ; Building : Coating — : Solutions Some Painting Solutions juuma Customers I ted moRC. Domestic Bar. Lysaght & & Plate for Butler beam manufacture | * * * Imported Coated The BlueScope Steel Suzhou Coating line will & Painted steel Hy (spec
Slide 15: Recruiting the right people
Recruiting the right people QO) Education / experience as well as attitude, stability, commitment, and fitness with Butler culture % of Employees by Qualification y' y @ Master O Technical Bachelor High School Diploma @ Primary School Retaining the right People QO) Pay for performance culture () Sha
Slide 16: Internal and external training
i VVVVV i VV Vv internal training: Cross-department business training Technical training Cross BSL Training Business Acumen Training Culture training external training: Language training Qualification training Managerial Skill training ‘ a “, BLUES COPE BiueScope Butler BUTLER
Slide 17: Localized Management Staff
Q) Localized Management Staff- many Sr. Managers with over 30 years experience combined with young tigers ist (be) ABS Bl BiueScope Butler BUTLER
Slide 18: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 18 BiueScope Butler ap BLUES COPE BUTLER
Slide 19: BlueScope Butler China Facilities
-BlueScope Butler China Facilities Shanghai Plant Vistawall Shanghai Tianjin Plant BuUTiee) BiueScope Butler BUTLER
Slide 20: State-of-the-Art Manufacturing Facilities
State-of-the-Art Manufacturing Facilities ae BiueScope Butler BUTLER
Slide 21: Metal Coating & Solutions manufacturing
1 Metal Coating & Over 70 sales offices 7 Solutions manufacturin at BiueScope Butler ap BLUES COPE BUTLER
Slide 22: Manufacturing Plants
| Manufacturing Plants : ‘Hellonglang - Me : yo Shand Ghee Ringo apes ohne” sea Meany: "| Sichuan fen ‘Yunnan feng Kona BiueScope Butler BUTLER
Slide 23: Sub-fabrication Plants
: Sulb-fabrication Plants: In addition, we have a network of accredited Butler builders however, unlike in the US, these business partners do not generally sell but are contracted to erect buildings directly with Fn customers Sichuan BiueScope Butler BUTLER
Slide 24: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 24 BiueScope Butler ap BLUES COPE BUTLER
Slide 25: Typical % Frames & Plant production
Typical % Frames & Plant production 59% % Plant Production Truss Components 2% BR 22% 21% Purlins 27% Stylwall 0% ee MIR-24 28% 25 BiueScope Butler ap BLUES COPE BUTLER
Slide 26: Solutions for Wide Range of Industries
"Solutions for Wide Range of Industries Manufacturing Infrastructure DMS Imduor Socver Stadium: : 7,890 sqm « ‘Xiamen Intemational Convention Center 18,500 sqm Dall Computer 15438. sqrt, Pharmaceutical Commercial & Retail Dongsheng Pharmaceutical 13,008 sqm Motro Sepermacket 24,08 sqm BiueScope Butl
Slide 27: Our Facilities are used as show case for customer visits
Our Facilities are used as show case for customer's Visit Elaborating the Product Difference Project Focus Discussion BiueScope Butler BUTLER
Slide 28: Trade Shows & Seminars
Trade Shows & Seminars SH LN og Sr BiueScope Butler BUTLER
Slide 29: Newspapers & Magazines Ads
Newspapers & Magazines Ads China Brief < Five World Leader da Pre -Englaeered Clea) Bulidlag’s ” Wie Have Completed S72 Projects. 122.71 Million Me Leni Weve Ringe Cnt _esaiiadnan munlaen seater case Rae. MenepeMnnsaneen : aoe ernae Pil acetone oar Butler The World Leader in Pre-Engim Steal Bu dings
Slide 30: Brochures & Technical material
Brochures & Technical material Butler Asia Becitic | LAH 1) 4g Fae Butler (Shueghat) Inc. 3 fae CARLA SBA Bi Butler Asia Pacific Butler Building Systems Butler Differences Blue Cover (En/Ch) ( Englishi Chinese ) (English & Chinese) (rue seonty ot ipl Caen oe it Ty RAR seas Butler Standard Building P
Slide 31: Factory Mutual Certificate
Factory Mutual Certificate Underwriter Laboratory ( UL) Certificate BiueScope Butler BUTLER
Slide 32: 100% Customer Satisfaction Guaranteed
100% Customer Satisfaction Guaranteed * Involvement in Sales Support by each department « Project Management Progress - Customers are our partners, we share their concerns, issues and success. BiueScope Butler BUTLER
Slide 33: BlueScope brands
Gj BLUESCOPE mones Consistent with ee the wider ; BlueScope Steel, - Vv STAWALL Butler have ___ minora reseed always promoted ~ and maintained strong brands BiueScope Butler BUTLER
Slide 34: Customers
Customers * Project Owners . * Government Competitors Local PEB producers (some with international affiliations) * Key Accounts * — Importers * Contractors / rollformers * Concrete Repeat & referral business is a key Local & international competitors continue to improve. success factor In response w
Slide 35: Midea, Haier, Dascom projects
Midea ~ 14 Projects Dascom ~ 130 M2 Haier — 43 Projects Orient Home 28 Stores GreatWall Computer — 6 Plants BiueScope Butler BUTLER
Slide 36: Kodak, GM, Metro, Dell projects
Kodak -Xiamen GM -Shanghai ee Metro — Xi’an OBI - Shanghai Weatherford - Shanghai Dell Computer - Xiamen . BiueScope Butler ap BLUES COPE BUTLER
Slide 37: Customer logos
3M Arex Canon <& Carrefour DENNISON ($6) intel Haier IEM mBeeees Qrar Customers oul, TOYOTA ‘ . —— vy Hh 0 China ‘ PavemRne Cea Golh. SAC Fc £ @ mororota GreatWall Hy Te 7 = 8 y BLUES COPE BiueScope Butler BUTLER
Slide 38: Market Profile
Market Profile: * Average contract size is over US$ 1 million * We can stay competitive in the local market * Our customers will continue to be the end users * Allsenior managers spending 50% of the time supporting sales * Continue to develop our builder organization * Expand our strategic relations
Slide 39: BiueScope Butler BUTLER
BiueScope Butler BUTLER
Slide 40: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 40 BiueScope Butler ap BLUES COPE BUTLER
Slide 41: Orders & Sales
Orders & Sales C US$ Millions $250 - @ Sales Orders $230 | $210 | $190 $170 $150 $130 $110 $90 $70 $50 $30 $10 % Average Sales Growth 1997 1998 1999 2000 2001 2002 2003 BiueScope Butler BUTLER
Slide 42: Total output in '000 metric tonnes
Total output in ‘000 metric tonnes 140 7 131 120 4 100 4 80 5 60 4 40 5 20 4 1997 1998 1999 2000 2001 2002 2003 BiueScope Butler BUTLER
Slide 43: Cost Reduction is a Continuous Process
Cost Reduction is a Continuous Process Main Elements of a Building by Cost BOl 15% : Primary Engineering 30% ° 7% Service g a 4% me _ Freight 4% Roof Panel _——_~ Secondary 15% Wall Panel 15% 10% BiueScope Butler BUTLER
Slide 44: Raw Materials Cost - MR24 Reinforcing Clip Example
Raw Materials Cost - MR24 Reinforcing Clip Example =e UuSsiClip “== —_% Savings 0% -20% -40% -60% -80% U.S. Price Local Price BiueScope Butler BUTLER
Slide 45: Developed regional & local sourcing
Developed regional & local sourcing C= Engineering Cost $/Hr —-— % Change 0% BiueScope Butler BUTLER
Slide 46: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 46 BiueScope Butler ap BLUES COPE BUTLER
Slide 47: Build in-Market Manufacturing
Build in-Market Manufacturing Pre-acquisition we focussed on growing existing markets and new geographies within China As part of BlueScope Steel, we are now also expanding our range of solutions and leveraging the wider businesses outside China BiueScope Butler BUTLER
Slide 48: Leadership
ri ship To maintal Market leader In China BiueScope Butler BUTLER
Slide 49: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 49 BiueScope Butler ap BLUES COPE BUTLER
Slide 50: Intel Shanghai: 27,842 sqm
Intel Shanghai: 27,842 sqm BiueScope Butler BUTLER
Slide 51: Kodak Xiamen: 65,000 sqm
Kodak Xiamen: 65,000 sqm BiueScope Butler BUTLER
Slide 52: GreatWall Computer: 65,000 sqm
GreatWaill Greatwall Computer: 65,000 sqm BiueScope Butler BUTLER
Slide 53: Motorola Tianjin: 75,514 sqm
A) MOTOROLA Motorola Tianjin: 75,514sqm BiueScope Butler BUTLER
Slide 54: Chery Auto: 124,684 sqm
Chery Auto: 124,684 sqm BiueScope Butler BUTLER
Slide 55: Dongsheng Pharmaceutical: 13,000 sqm
Dongsheng Pharmaceutical: 13,000 sqm BiueScope Butler BUTLER
Slide 56: Markor Furniture Showroom: 5,154 sqm
Markor Furniture Showroom : 5,154 sqm BiueScope Butler BUTLER
Slide 57: Jiangxi Greencool
Zaafnde ae a GHEENCOOE Ss Jiangxi Greencool: 128,000 +5,000sqm BiueScope Butler BUTLER
Slide 58: Haier Research Center: 26,503 sqm
Haier Research Center: ,26,503sqm BiueScope Butler BUTLER
Slide 59: DMS Indoor Soccer Stadium: 47,880 sqm
DMS Indoor Soccer Stadium: 47,880 sqm BiueScope Butler BUTLER
Slide 60: Shanghai GM: 85,000 sqm
SHANGHAI GM General Motor - 85,000 sqm BiueScope Butler BUTLER
Slide 61: Overview
Overview Facilities and Processes Products and Markets Financials Strategy Reference Projects Summary 61 BiueScope Butler ap BLUES COPE BUTLER
Slide 62: Summary
* Very strong, consistent growth achieved to date in China * Significant further growth opportunities remain : * Ongoing economic growth; * Further geographic expansion within Greater China; ¢ Inter-material replacement and new products; * Leverage BlueScope Steel solutions and network within Greate
Slide 63: BlueScope
4 BLUESCOPE BUTLER
BlueScope Steel — Investor Presentation (November 2004) on 6ix