Bluescope Steel Limited · ASX:BSL
Bluescope Steel — H1 FY2022 Earnings Presentation
96 slides from Bluescope Steel's earnings presentation, Feb 21, 2022
Slide 1: 1H FY2022 Financial Results Presentation
1H FY2022 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 21 February 2022 Pictured: BlueScope Steel Limited. ASX Code: BSL St Bede's Catholic College in ABN: 16 000 011 058 Chisholm, NSW, featuring Level 11, 120 Coll
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: 1H FY2022 Highlights
1H FY2022 HIGHLIGHTS Positioning for long term sustainable growth and returns • Continuing to evolve our approach to safety by building capacity and driving a greater focus on engagement and learning • Delivered strong financial results and returns to shareholders • Strong progress on climate – comp
Slide 4: Safety Starts With All Of Us
SAFETY STARTS WITH ALL OF US 1,167 250 Leaders involved in our global Team-based risk control HSE risk management program improvement projects active to date (incl Board & ELT) across the business • Continuing to evolve our approach to safety – Driving innovative and practical HSE risk control impro
Slide 5: Well Positioned for the Favourable Long Term Outlook for Steel
WELL POSITIONED FOR THE FAVOURABLE LONG TERM OUTLOOK FOR STEEL Recognition of steel as a critical input for a clean energy future (incl. wind, solar and transmission infrastructure) Consolidation and rationalisation in the US steel industry supporting enhanced supply-side discipline Focus on overpro
Slide 6: 1H FY2022 Financial Highlights
1H FY2022 FINANCIAL HIGHLIGHTS Record half year result on stronger spreads and robust demand Underlying EBIT1 Underlying EBIT Return Reported NPAT On Invested Capital2 $2.20Bn 43.7% $1.64Bn Up $1.67Bn on 1H FY2021 Up from 11.0% in 1H FY2021 Up $1.31Bn on 1H FY2021 Free Cash Flow Net Cash Capital Man
Slide 7: 1H FY2022 Underlying EBIT by Segment
1H FY2022 UNDERLYING EBIT BY SEGMENT Strong performance across the business, with outstanding contributions from North Star and ASP North Star Australian Steel Building Products Asia Products and North America $1,229M $688M $266M Up 1,665% on 1H FY2021 Up 165% on 1H FY2021 Up 77% on 1H FY2021 New Ze
Slide 8: Our Purpose and Strategy
OUR PURPOSE AND STRATEGY OUR PURPOSE We create and inspire smart solutions in steel, to strengthen our communities for the future OUR STRATEGY TRANSFORM GROW DELIVER DELIVER A STEP CHANGE IN GROW OUR PORTFOLIO OF DELIVER A SAFE WORKPLACE, CUSTOMER EXPERIENCE AND SUSTAINABLE STEELMAKING AND AN ADAPTA
Slide 9: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Embedding sustainability in all that we do Inclusion and Diversity • Ensuring our employees feel ResponsibleSteel™ Site Certification safe to speak up, be heard and • Port Kembla Steelworks (PKSW) and steel processing sites awarded feel welcome ResponsibleSteel™ site certif
Slide 10: Port Kembla Blast Furnace Reline & Upgrade
PORT KEMBLA BLAST FURNACE RELINE & UPGRADE Project transitioning to feasibility phase; examining a comprehensive upgrade of the facility, including technologies to enable larger medium to longer-term carbon abatement • A reline of 6BF is currently the most technically and economically feasible optio
Slide 11: Port Kembla Blast Furnace Reline & Upgrade
PORT KEMBLA BLAST FURNACE RELINE & UPGRADE Subject to feasibility approval, project is to be delivered over next four years at a cost of ~$1Bn • Following completion of pre-feasibility, preliminary indicative cost estimate is now around $1Bn, up from the initial indicative range of $700-800 million,
Slide 12: Port Kembla Blast Furnace Reline & Upgrade
PORT KEMBLA BLAST FURNACE RELINE & UPGRADE Scope of work includes traditional reline plus a significant upgrade of the furnace and supporting infrastructure, including investment in technologies to enable emissions abatement Installation of new Upgrade to automation Key downcomer and upgrade and con
Slide 13: North Star Expansion
NORTH STAR EXPANSION Project well-progressed. Expect first coil production in mid calendar year 2022; commissioning to full capacity over 18 months thereafter • Project well progressed1 – EAF commissioned and operating well, reached its 100 heat milestone in January 2022 – Ladle Metallurgy Furnaces
Slide 14: Established BlueScope Recycling
ESTABLISHED BLUESCOPE RECYCLING Established BlueScope Recycling through the acquisition of ferrous scrap steel recycling business of MetalX, the leading supplier of scrap feed to North Star • Acquired two of MetalX’s operating sites in Dec 2021; in Indiana and in Ohio, immediately adjacent to North
Slide 15: Financial results
Financial results 15
Slide 16: North Star
NORTH STAR Record prices and spreads leading to record earnings; continued to operate at full utilisation Underlying EBIT ($M) 1,229 • Record steel spreads on significantly higher steel pricing, noting specific sales mix relative to benchmark2 • Operated at full utilisation through the half, with de
Slide 17: North Star
NORTH STAR Near term automotive demand constrained by semi conductor shortage’ medium term demand indicators remain supportive, including pent up demand in automotive Automotive1 Non-residential construction2 Manufacturing3 (Light vehicle sales, annualised million units) (Value of work put in place,
Slide 18: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Strong performance driven by robust spreads and volumes Underlying EBIT ($M) • Continued strength in domestic despatch 688 volumes – led by construction and distribution segments – Record sales volumes in premium branded 415 products, such as COLORBOND® steel, 259 TRUECORE®
Slide 19: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Strongest domestic despatches since 2H FY2008, driven by record demand across both residential and non-residential construction segments Dwelling Total Australian domestic despatch volumes (kt) • Approximately half of product goes to Alterations & Total construction % shown
Slide 20: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Detached building approvals and renovations showing resilience post Homebuilder program; robust approvals for non residential sector Monthly dwelling approvals1 (‘000 units, annualised) Alterations and additions approvals2 ($Bn) Holding towards upper level band following re
Slide 21: Building Products Asia and North America
BUILDING PRODUCTS ASIA AND NORTH AMERICA Strong improvement on prior half driven by cyclical margin expansion in North America coated business; solid performances from China, Thailand and India Underlying EBIT ($M) North America – EBIT $163.2M 1H FY2022, up from $99.2M in 2H FY2021 266 • Cyclical ma
Slide 22: New Zealand and Pacific Islands
NEW ZEALAND AND PACIFIC ISLANDS Stronger performance driven mainly by higher prices. Ongoing strong domestic demand Underlying EBIT ($M) 86 73 57 • Domestic demand remains at historically robust levels, particularly in building and construction, supporting strong demand for coated and painted produc
Slide 23: Buildings North America
BUILDINGS NORTH AMERICA Strong demand, however margins compressed on high steel feed costs; higher contribution from Properties Group on timing of project completion Underlying EBIT ($M) 71 • Strong end use demand and order intake for commercial and industrial buildings on favourable trends such as
Slide 24: Underlying Group EBIT Variance
UNDERLYING GROUP EBIT VARIANCE Record performance after previous strong halves – driven mainly by stronger margins 1H FY2022 vs 1H FY2021 ($M) 1H FY2022 vs 2H FY2021($M) Net spread increase $1,809M Conversion & other costs ($M) Conversion & other costs ($M) Cost improvement initiatives 23 Cost impro
Slide 25: Financial framework
Financial framework 25
Slide 26: Financial Framework Underpinning Resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE Strong focus on driving financial performance and disciplined allocation of capital Disciplined Returns Focus Robust Capital Structure Capital Allocation • ROIC > WACC on average through • Strong balance sheet, with a target • Invest to maintain safe and r
Slide 27: Returns Focus Delivering ROIC
RETURNS FOCUS DELIVERING ROIC Targeting returns above cost of capital through the cycle • ROIC1 is the primary Group ROIC Performance (%) measure of performance 43.7% across all business units and is a key focus for the 24.8% Group. ROIC is a key 19.5% discipline for: 7.6% – performance management F
Slide 28: Returns Focus Maximising Cash Generation
RETURNS FOCUS MAXIMISING CASH GENERATION Strong operating cash flow funding investment in the portfolio and returns to shareholders Net cash flow ($M) Net cash / (debt)1 ($M) (before investment exp and financing) $M FY2020 FY2021 2H21 1H22 Reported EBITDA 1 844 2,246 1,475 2,514 (507) Adjust for oth
Slide 29: Returns Focus Working Capital
RETURNS FOCUS WORKING CAPITAL Increase in working capital due to significantly higher steel pricing and spreads, along with strong activity levels and supply chain disruptions across the business $1,108M increase comprised of: 2,795 (37) (28) 979 ASP – largely driven by inventory on 450 strong deman
Slide 30: Returns Focus Inventory Movement
RETURNS FOCUS INVENTORY MOVEMENT Increase predominantly at ASP and Building Products, driven by higher rate on strong steel pricing environment, and increased volumes on robust end market demand and supply chain disruptions RM $1,202M WIP $897M $979M increase comprised of segmental movements: FG $1,
Slide 31: Robust Capital Structure Net Cash Position; Ample Liquidity
ROBUST CAPITAL STRUCTURE NET CASH POSITION; AMPLE LIQUIDITY Strong balance sheet providing the foundation to deliver long term sustainable earnings and growth • Maintained investment grade credit Net debt / (cash) ($M) Liquidity ($M) ratings (undrawn facilities and cash) Target ~$400M 3,694 • Strong
Slide 32: Disciplined Capital Allocation Capital Expenditure
DISCIPLINED CAPITAL ALLOCATION CAPITAL EXPENDITURE Investing for sustainable earnings growth Capital allocation framework Capital and acquisition expenditure1 ($M) 674 Operating Asset Sales Divestments Cash Flow North Star Expansion1 177 • Total project cost expected to be around 10% Financial Capac
Slide 33: Disciplined Capital Allocation Future Investment Priorities
DISCIPLINED CAPITAL ALLOCATION FUTURE INVESTMENT PRIORITIES Indicative ~$1.9bn of projects identified over five years for growth opportunities, foundational investment and to position the business for a low carbon future Future investment priorities ($M) Project Description FY22 FY27 ~$1.9bn North S
Slide 34: Disciplined Capital Allocation Shareholder Returns
DISCIPLINED CAPITAL ALLOCATION SHAREHOLDER RETURNS Over $2bn returned since FY2017; announced interim unfranked dividend of 25cps and extension of existing on-market buy-back program • BlueScope’s capital management policy is to distribute at least 50% of free Dividends paid and buy-backs2 ($M) cash
Slide 35: Segment guidance for 2H FY2022
Segment guidance for 2H FY2022 35
Slide 36: Segment Guidance for 2H FY2022
SEGMENT GUIDANCE FOR 2H FY2022 Outlook subject to assumptions and qualifiers referenced on page 38 North Star Australian Steel Products Building Products Asia & US • Expect a result less than half that of 1H FY2022 • Expect a lower result compared to 1H FY2022 • Expect a result significantly lower t
Slide 37: Group outlook and summary
Group outlook and summary 37
Slide 38: 2H FY2022 Group Outlook
2H FY2022 GROUP OUTLOOK1 • Underlying EBIT in 2H FY2022 is expected to be in the range of $1.20 billion to $1.35 billion – which would be second only to last half when looking back over BlueScope's 20-year listed history • For the purposes of the outlook, the Company has made the following 2H FY2022
Slide 39: A Resilient Business Delivering Returns Through the Cycle
A RESILIENT BUSINESS DELIVERING RETURNS THROUGH THE CYCLE A different kind of steel company being purpose-led, sustainability focussed and differentiated by strong brands Well positioned with a high-quality asset portfolio to take advantage of favourable industry and end use trends Disciplined appro
Slide 40: Questions
Questions 40
Slide 41: Appendix: BF6 Reline and Upgrade & PKSW GHG Abatement Initiatives
Appendix: BF6 Reline and Upgrade & PKSW GHG Abatement Initiatives 41
Slide 42: Collaborating to Progress Towards Our Targets and Goal
COLLABORATING TO PROGRESS TOWARDS OUR TARGETS AND GOAL Established MoUs and progressing work with Rio Tinto and Shell to support our decarbonisation options and progress towards our targets and goal Collaboration with Rio Tinto Collaboration with Shell • Announced MoU in October 2021 – BlueScope and
Slide 43: Range of Projects to Enhance PKSW GHG Performance
RANGE OF PROJECTS TO ENHANCE PKSW GHG PERFORMANCE Further re-use of steelmaking gases presents significant emissions intensity reduction opportunities, enabled as part of reline / upgrade project Enhancing Energy Efficiency Blast Furnace Injection Piloting H2 Generation • Installing equipment to rec
Slide 44: Exploring Emerging GHG Abatement Technologies at PKSW
EXPLORING EMERGING GHG ABATEMENT TECHNOLOGIES AT PKSW In addition to pursuing energy and process efficiencies and low carbon energy sources such as further renewable energy contracts, we are progressing concept studies into emerging emissions improvement technologies Integrated steelworks Digital Tw
Slide 45: BlueScope: A Different Kind of Steel Company
BLUESCOPE: A DIFFERENT KIND OF STEEL COMPANY What makes us different? 1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED 2 HIGH-QUALITY ASSET PORTFOLIO 3 LEADING PRODUCT TECHNOLOGIES, BRANDING & CHANNELS 4 FINANCIAL STRENGTH & COST COMPETITIVENESS 5 DEPLOYING FINANCIAL STRENGTH FOR LONG TERM SUSTAINABLE GROW
Slide 46: Our Bond / Our Purpose
Our Bond Our Customers are our partners Our People are our strength Our Our Shareholders are our foundations Purpose Our Local Communities are our homes We create and inspire smart solutions in steel, to strengthen our communities for the future. 46
Slide 47: Purpose-led and Sustainability Focussed: Five Key Sustainability Outcomes
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED FIVE KEY SUSTAINABILITY OUTCOMES Climate action Collaborate and act to reduce our impact on shared resources, mitigate climate risks and leverage opportunities Safe and inclusive workplaces Create safe, healthy and inclusive workplaces that value diversity,
Slide 48: Purpose-led and Sustainability Focussed: Health and Safety
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED HEALTH AND SAFETY Continuing to evolve our approach to safety by building capacity and driving a greater focus on engagement and learning Our evolved approach means we: TRIFR total recordable injury frequency rate, per million hours worked • Drive a culture
Slide 49: Purpose-led and Sustainability Focussed: Inclusion and Diversity
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED INCLUSION AND DIVERSITY We have continued to build an inclusive workforce which reflects the diversity of the communities in which we operate • Ensuring our employees feel safe to speak up, be heard and feel welcome Women in BSL workforce (%) continues to be
Slide 50: Purpose-led and Sustainability Focussed: Supply Chain Sustainability
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED SUPPLY CHAIN SUSTAINABILITY We foster responsible business practices and uphold human rights through engagement, risk assessment and improvement activities Our Approach 1H FY2022 Progress Prioritise • Completed the Engage and Assess process with 251 supplier
Slide 51: High Quality Asset Portfolio: Quality Assets Across Large and Growing Markets
2 HIGH QUALITY ASSET PORTFOLIO QUALITY ASSETS ACROSS LARGE AND GROWING MARKETS • Strong operating leverage from diverse business India China ASEAN portfolio • A leader in metal coating and painting for building and construction • Iconic industrial brand position of COLORBOND® steel • Integrated and
Slide 52: High Quality Asset Portfolio: Diversified Business
2 HIGH QUALITY ASSET PORTFOLIO DIVERSIFIED BUSINESS Geographic diversity and increasing contribution from value-added products Underlying EBITDA by region BlueScope despatch volume mix 100% Buildings North America NZ & Pacific Asia $183M 90% $265M North America Building products 4% $2,253M 80% 6% Hi
Slide 53: High Quality Asset Portfolio: Broad Exposure to End-Use Segments
2 HIGH QUALITY ASSET PORTFOLIO BROAD EXPOSURE TO END-USE SEGMENTS Broad exposure across geographies, largely focused on the building and construction industry BlueScope indicative despatch volume split by region and end-use segment1 Manufacturing, Other (Exports) Agri & Other Automotive North Star:
Slide 54: Leading Product Technologies
3 LEADING PRODUCT TECHNOLOGIES Continued investment in research & development to maintain leadership in steel coating and painting technologies Product Technology and Development Leadership • Advanced pre-painted and metallic coating development for building, construction and home appliance segments
Slide 55: Leading Brands and Channels
3 LEADING BRANDS AND CHANNELS A portfolio of many well-known and respected names to support our premium branded positions; clear focus on knowing our end customers and maintaining strong channels to market Brands Channels Australia ® ® Zealand New ® Asia ® ® ® ® ® America North ® ® ® 55
Slide 56: Financial Strength & Cost Competitiveness
4 FINANCIAL STRENGTH & COST COMPETITIVENESS GUIDED BY OUR FINANCIAL FRAMEWORK Strong returns, a robust balance sheet and a disciplined approach to capital allocation Returns Robust Disciplined Focus Capital Structure Capital Allocation Group ROIC1 Performance (%) 43.7% ~$700M NET CASH • Invest to ma
Slide 57: Financial Strength & Cost Competitiveness: North Star
4 FINANCIAL STRENGTH & COST COMPETITIVENESS NORTH STAR Strong EBITDA and cash generation through the cycle; industry leading margins; consistently full utilisation US$M EBITDA and spread (100% basis) EBIT margins3 (%) 1,400 1,352 45% U.S. mini-mill spread1 1,300 EBITDA (100% basis) 28% 1,000 Cash fl
Slide 58: Financial Strength & Cost Competitiveness: Australian Steel Products
4 FINANCIAL STRENGTH & COST COMPETITIVENESS AUSTRALIAN STEEL PRODUCTS Australian steelmaking breakeven at minimum recent spreads; benefits from vertical integration Asian steel spread1 & estimated steelmaking The value of vertical integration cash breakeven2 (US$/t) • Clear objective of optimising p
Slide 59: Deploying Financial Strength for Long Term Sustainable Growth and Returns
5 DEPLOYING FINANCIAL STRENGTH FOR LONG TERM SUSTAINABLE GROWTH AND RETURNS Maintaining balance sheet capacity to secure sustainable future returns and invest in growth, whilst returning funds to shareholders 1 2 3 Investing over $1.8bn in Positioning the business Increasing shareholder long-term su
Slide 60: Deploying Financial Strength: Future Investment Priorities
5 DEPLOYING FINANCIAL STRENGTH FUTURE INVESTMENT PRIORITIES Indicative ~$1.9bn of projects identified over five years for growth opportunities, foundational investment and to position the business for a low carbon future Future investment priorities ($M) Project Description FY22 FY27 ~$1.9bn North S
Slide 61: Deploying Financial Strength: Digitally Transforming Our Business
5 DEPLOYING FINANCIAL STRENGTH DIGITALLY TRANSFORMING OUR BUSINESS Delivering the next wave of customer, growth and productivity improvements through technology Strengthen Capabilities Right skills and behaviours foundations to Data and platforms Investing in enabling platforms Transfer learnings ac
Slide 62: Deploying Financial Strength: Investing in Growth at ASP
5 DEPLOYING FINANCIAL STRENGTH INVESTING IN GROWTH AT ASP A wide range of low capital growth opportunities in intermaterial applications TRUECORE® steel TRU-SPEC® coil plate Cladding & facade applications • Sales of TRUECORE® steel continue to • Investing in a new 160kt stretch levelling • AZURE® ra
Slide 63: Additional Information: Group-level Material
Additional Information: Group-level Material 63
Slide 64: Financial Headlines
FINANCIAL HEADLINES SIX MONTHS ENDED 1H FY22 vs $M (unless marked) 31 DEC 2020 31 DEC 2021 1H FY21 Total revenue 5,831.4 9,436.2 External despatches of steel products (kt) 3,808.0 3,844.4 EBITDA − Underlying 1 772.5 2,461.0 EBIT − Reported 529.8 2,257.4 − Underlying 1 530.6 2,204.1 NPAT −
Slide 65: Reconciliation Between Reported and Underlying EBIT and NPAT
RECONCILIATION BETWEEN REPORTED AND UNDERLYING EBIT AND NPAT1 1H FY2021 1H FY2022 $M EBIT $M NPAT $M EBIT $M NPAT $M Reported results 529.8 330.3 2,257.4 1,643.5 Underlying adjustments Discontinued Business (gains) / losses (6.5) (6.0) (1.6) (1.1) Business development and acquisition costs 3.8 2.2 8
Slide 66: Underlying Earnings, Net Finance and Tax Cost
UNDERLYING EARNINGS, NET FINANCE AND TAX COST 1H 2H 1H $M Breakdown of net finance costs FY2021 FY2021 FY2022 Reg-S Bonds 9.5 Underlying EBIT 530.6 1,193.2 2,204.1 Core bilateral loan facility charges 3.8 Underlying finance costs (37.2) (33.5) (37.1) Leases 13.8 Interest revenue 4.7 4.3 6.5 Amortisa
Slide 67: Summary of Financial Items by Segment
SUMMARY OF FINANCIAL ITEMS BY SEGMENT Sales revenue Total steel despatches $M 1H FY2021 2H FY2021 FY2021 1H FY2022 '000 tonnes 1H FY2021 2H FY2021 FY2021 1H FY2022 North Star BlueScope Steel 785.9 1,591.8 2,377.7 2,436.5 North Star BlueScope Steel 1,024.7 1,058.4 2,083.1 1,016.0 Australian Steel Pro
Slide 68: Cash Flow Statement
CASH FLOW STATEMENT $M 1H FY2021 2H FY2021 1H FY2022 Reported EBITDA 771.7 1,474.6 2,514.3 Adjust for other cash profit items (13.6) 1.0 (9.2) Cash from operations 758.1 1,475.6 2,505.1 Working capital movement (inc provisions) (132.4) (315.0) (1,141.0) Driven by record pricing and Gross operating c
Slide 69: Balance Sheet
BALANCE SHEET $M 31 Dec 2020 30 Jun 2021 31 Dec 2021 Assets Cash 1,495.1 1,961.9 1,903.6 Receivables and Contract Assets * 1,089.3 1,682.4 1,877.7 Inventory * 1,921.4 2,379.8 3,358.5 Property, Plant & Equipment 4,237.0 4,521.9 4,880.6 Right Of Use Assets 316.2 357.9 328.8 Intangible Assets 1,644.1 1
Slide 70: Prudent Maturity Profile
PRUDENT MATURITY PROFILE Syndicated facility replaced in July 2021 with bilateral facilities with relationship bank group – extending tenor and reducing cost of main revolving debt facilities Maturity profile1 ($M) Bilateral Loan Agreements Reg-S Bonds NS BlueScope JV facilities (100%) Inventory Fin
Slide 71: Committed Debt Facilities as at 31 December 2021
COMMITTED DEBT FACILITIES AS AT 31 DECEMBER 20211 Committed Drawn Maturity Local currency A$M A$M Bilateral Loan Agreements - Tranche A Jul 2024 A$335M A$335M - - Tranche B Jul 2025 A$335M A$335M - - Tranche C Jul 2026 A$335M A$335M - Reg-S Bonds May 2023 US$300M A$414M A$414M Inventory Finance Sep
Slide 72: Buy Back History
BUY BACK HISTORY 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 Total Shares bought (M) 12.8 12.0 9.2 18.9 17.0 14.6 2.9 - - 13.6 100.9 Consideration ($M) 150 148 152 293 217 186 34 - - 285 1,465 Average price ($/sh) $11.74 $12.37 $16.50 $15.50 $12.81 $12.68 $11.86 -
Slide 73: Indicative Half Year EBIT Sensitivities
INDICATIVE HALF YEAR EBIT SENSITIVITIES1 Sensitivities may vary subject to volatility in prices, currencies and market dynamics – refer to page 81 Australian Steel Products segment New Zealand Steel & Pacific Steel segment North Star segment +/- US$10/t move in average benchmark hot rolled +/- US$10
Slide 74: Additional Information: Segment Material
Additional Information: Segment Material 74
Slide 75: North Star: Financial and Despatch Summaries
NORTH STAR Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 Revenue 785.9 1,591.8 2,377.7 2,436.5 Revenue 569.1 1,227.5 1,796.6 1,782.4 Und
Slide 76: North Star: Underlying EBIT Variance
NORTH STAR Underlying EBIT variance 1H FY2022 vs 1H FY2021 ($M) 1H FY2022 vs 2H FY2021 ($M) Net spread increase $1,216.6M Net spread increase (436.5) $634.6M 1,228.5 (148.9) 1,228.5 (61.5) (1.0) 4.8 (46.4) (27.0) 59.7 783.5 1,653.1 607.6 69.6 1H Prices Raw Conversion Volume FX 1H 2H Prices Raw Conve
Slide 77: North Star: Expansion Capital Spend Profile
NORTH STAR North Star expansion capital spend profile Accounting capital spend (incl. capital accruals) Cash capital spend Total to 2H FY2022 FY2023 Total to 2H FY2022 FY2023 1H FY2021 2H FY2021 1H FY2022 1H FY2021 2H FY2021 1H FY2022 30-Jun-20 (expected) (expected) 30-Jun-20 (expected) (expected) U
Slide 78: Australian Steel Products: Financial and Despatch Summaries
AUSTRALIAN STEEL PRODUCTS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 '000 Tonnes 1H FY2021 2H FY2021 FY2021 1H FY2022 Revenue 2,739.5 3,109.0 5,848.5 3,963.0 Hot rolled coil 286.1 338.3 624.4 373.4 Underlyin
Slide 79: Australian Steel Products: Underlying EBIT Variance
AUSTRALIAN STEEL PRODUCTS Underlying EBIT variance 1H FY2022 vs 1H FY2021 ($M) 1H FY2022 vs 2H FY2021 ($M) Net spread increase $493.6M Conversion & other costs ($M) Conversion & other costs ($M) Net spread increase $368.7M Cost improvement initiatives 6 Cost improvement initiatives 6 Escalation1 (82
Slide 80: Australian Steel Products: Spreads
AUSTRALIAN STEEL PRODUCTS Stronger spreads during 1H FY2022; began to soften at the end of the half with declining HRC prices and increasing raw material costs Indicative steelmaker HRC lagged spread Notes on calculation: • ‘Indicative steelmaker HRC spread’ $800 representation based on simple input
Slide 81: Australian Steel Products: Relationships with Benchmark Pricing
AUSTRALIAN STEEL PRODUCTS Relationships with benchmark pricing • Selling prices across majority of domestic product correlated with SBB East Asia HRC price; lagged generally three to five months; degree of Steel prices correlation between realised and benchmark prices can vary within a given half ye
Slide 82: Australian Steel Products: Despatch Mix
AUSTRALIAN STEEL PRODUCTS Despatch mix (Mt) 1H FY2022 Product Mix 1.60 1.58 1.55 0.16 Export 0.16 0.35 Export 0.09 Domestic - 0.08 externally sourced 0.07 HRC Metal Coated Plate Painted Domestic - BSL CRC Other inc ext sourced 1.31 1.33 1.18 manufactured Domestic 1H FY2021 2H FY2021 1H FY2022 82
Slide 83: Australian Steel Products: Revenue and Costs
AUSTRALIAN STEEL PRODUCTS 1H FY2022 Revenue 1H FY2022 Underlying costs (to EBIT line) A$3,963M Non-steel business costs relate to: Non-steel business • Export coke sales Conversion & overhead A$3,276M • Cold ferrous feed to Infrabuild components (in order of value): • Export coke (scrap pool) • Dire
Slide 84: Australian Steel Products: Residential Building Approvals
AUSTRALIAN STEEL PRODUCTS Record high detached building approvals on rolling annual basis translating into strong pipeline of work. Robust house prices and high household savings have also propelled A&A approvals Long-Term Dwelling Approvals: rolling 12 months1 (‘000) Dwelling Commencements: by halv
Slide 85: Australian Steel Products: Non-Residential Approvals
AUSTRALIAN STEEL PRODUCTS Non-residential approvals were steady during pandemic and now showing growth signals as confidence returns. Public investment providing key support in Social and Institutional segment Non-Residential Building Approvals: rolling 12 months1 (A$bn) Non-Residential Work Done: b
Slide 86: Building Products Asia & North America: Financial and Despatch Summaries
BUILDING PRODUCTS ASIA & NORTH AMERICA Financial and despatch summaries Key segment financial items Despatches by business $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 ‘000 metric tonnes 1H FY2021 2H FY2021 FY2021 1H FY2022 Revenue 1,459.3 1,666.3 3,125.6 2,158.4 Thailand 175.0 221.6 396.6
Slide 87: Building Products Asia & North America: Underlying EBIT Variance
BUILDING PRODUCTS ASIA & NORTH AMERICA Underlying EBIT variance 1H FY2022 vs 1H FY2021 ($M) 1H FY2022 vs 2H FY2021 ($M) Net spread increase $125.6M Net spread increase $71.6M (623.2) 721.0 (407.1) 459.9 265.6 265.6 (18.0) 9.4 (1.6) 2.0 (5.3) 14.1 183.2 150.3 18.8 27.7 1H Export Domestic Raw Conversi
Slide 88: New Zealand & Pacific Islands: Financial and Despatch Summaries
NEW ZEALAND & PACIFIC ISLANDS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 '000 Tonnes 1H FY2021 2H FY2021 FY2021 1H FY2022 Revenue 436.2 458.1 894.3 518.0 Domestic despatches Underlying EBITDA 67.2 84.4 151.6
Slide 89: New Zealand & Pacific Islands: Underlying EBIT Variance
NEW ZEALAND & PACIFIC ISLANDS Underlying EBIT variance 1H FY2022 vs 1H FY2021 ($M) 1H FY2022 vs 2H FY2021 ($M) Net spread increase $31.6M Includes $1M reduction in Includes $4M improvement Net spread increase $15.9M vanadium by-product in vanadium by-product contribution (32.6) contribution (21.9) 5
Slide 90: New Zealand & Pacific Islands: Despatch Mix
NEW ZEALAND & PACIFIC ISLANDS Despatch mix (Mt) 1H FY2022 Product Mix 323.1 1.3 304.2 1.8 Domestic 283.8 70.0 45.6 1.2 Export long 40.3 Export flat 106.7 102.8 109.1 Domestic long HRC Plate CRC Metal Coated Painted 145.1 154.0 Other flat products 133.2 Domestic flat Pacific Steel long products 1H FY
Slide 91: New Zealand & Pacific Islands: Housing and Construction Activity
NEW ZEALAND & PACIFIC ISLANDS A very strong general economic recovery in NZ, with housing construction, in particular, underpinning growth. Robust pipeline of approvals across construction sector remains in place Residential Building Consents: rolling 12 months1 (‘000) Residential Work Put in Place:
Slide 92: New Zealand & Pacific Islands: East Asian Rebar Price
NEW ZEALAND & PACIFIC ISLANDS The East Asian rebar price influences domestic and export long product pricing SBB East Asian rebar price, unlagged (US$/t) $800 $700 $600 $500 $400 $300 $200 $100 $0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Sourc
Slide 93: Buildings North America: Financial and Despatch Summaries
BUILDINGS NORTH AMERICA Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 $M unless marked 1H FY2021 2H FY2021 FY2021 1H FY2022 Revenue 601.8 496.9 1,098.7 744.5 Revenue 435.7 383.3 819.0 543.8
Slide 94: Buildings North America: Underlying EBIT Variance
BUILDINGS NORTH AMERICA Underlying EBIT variance 1H FY2022 vs 1H FY2021 ($M) 1H FY2022 vs 2H FY2021 ($M) Net margin decrease $75.0M Net margin decrease $10.4M 105.5 (167.1) 70.5 (98.2) 107.0 18.0 17.0 18.0 (0.9) (19.2) 1.4 23.4 10.0 (13.4) 1H Prices1 Raw Conversion Volume FX 1H 2H Prices1 Raw Conver
Slide 95: Glossary
GLOSSARY 1H Six months ended 31 December in the relevant financial year FY2021 12 months ending 30 June 2021 1H FY2021 Six months ended 31 December 2020 FY2022 12 months ending 30 June 2022 1H FY2022 Six months ended 31 December 2021 FY2023 12 months ending 30 June 2023 1H FY2023 Six months ended 31
Slide 96: 1H FY2022 Financial Results Presentation
1H FY2022 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 21 February 2022 Pictured: BlueScope Steel Limited. ASX Code: BSL St Bede's Catholic College in ABN: 16 000 011 058 Chisholm, NSW, featuring Level 11, 120 Coll