Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Bank of America Metals and Mining Conference 2022
25 slides from Bluescope Steel's conference presentation, May 19, 2022
Slide 1: Bank of America Metals and Mining Conference Presentation
Bank of America For personal use only Metals and Mining Conference Presentation Tania Archibald Chief Financial Officer 17 May 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 Collins St, Melbourne, VIC, 30
Slide 2: Important Notice
IMPORTANT NOTICE For personal use only 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.
Slide 3: Overview
For personal use only Overview BlueScope 3
Slide 4: Our Bond and Purpose
Our For personal use only 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. 4
Slide 5: A Different Kind of Steel Company
A DIFFERENT KIND OF STEEL COMPANY Recognised as a global leader in metal coating and painting for steel building and construction For personal use only applications, manufacturing and marketing a wide range of branded products Australia ® ® America North ® ® Asia ® ® ® ® Zealand New Note: targeting
Slide 6: A High-Quality Asset Portfolio
A HIGH-QUALITY ASSET PORTFOLIO For personal use only A suite of quality assets across large and growing markets; with an end-use segment mix primarily focussed on building and construction, diversified across Australia, the US, Asia and New Zealand End-use segment exposure (share of 1H FY2022 despat
Slide 7: Our Strategy
OUR STRATEGY For personal use only 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
Slide 8: Embedding Sustainability in All That We Do
EMBEDDING SUSTAINABILITY IN ALL THAT WE DO For personal use only Five key sustainability outcomes Climate action Safe and inclusive workplaces Responsible products and supply chains Strong communities Sustainable and enduring business 8
Slide 9: BlueScope's Growing US Presence
BLUESCOPE’S GROWING US PRESENCE Expanding our footprint and growing our brand presence across the US flat steel value chain. For personal use only Total investment to exceed $4.5Bn upon completion of Coil Coatings acquisition Kalama, WA Recycling & Steelmaking Evansville, WI Waterloo, IN Delta, OH A
Slide 10: Expanding North Star
EXPANDING NORTH STAR 850ktpa1 expansion project well-progressed. Expect first coil production in mid calendar year For personal use only 2022; commissioning to full capacity over 18 months thereafter • Initiated project in August 2019 to expand North Star from 2.1mtpa 1 to 3.0mtpa1 through the addit
Slide 11: Established BlueScope Recycling
ESTABLISHED BLUESCOPE RECYCLING Established BlueScope Recycling through the acquisition of ferrous scrap steel recycling business of For personal use only 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, immediat
Slide 12: Coil Coatings Acquisition
COIL COATINGS ACQUISITION For personal use only Agreed to acquire Coil Coatings for US$500M1; delivers significant painting footprint in Eastern US Coil Coatings overview Strategic rationale • Coil Coatings is the second largest metal coil painter in the 1 US, with seven strategically located sites
Slide 13: Well Positioned for the Favourable Long Term Outlook for Steel
WELL POSITIONED FOR THE FAVOURABLE LONG TERM OUTLOOK FOR STEEL For personal use only 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 disci
Slide 14: Financial Framework Underpinning Resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE For personal use only Strong focus on driving financial performance and disciplined allocation of capital Returns Focus Focus on ROIC and free cash generation Robust Capital Structure Maintaining a strong balance sheet Disciplined Capital Allocation Target
Slide 15: Deploying Financial Strength for Long Term Sustainable Growth and Returns
DEPLOYING FINANCIAL STRENGTH FOR LONG TERM SUSTAINABLE GROWTH AND RETURNS For personal use only 1 2 3 Investing around A$1.8Bn Positioning the business Increasing shareholder in long-term sustainable for a low carbon future returns earnings and growth • 2050 net zero GHG goal1 • North Star expansion
Slide 16: Performance Highlights
For personal use only Performance Highlights 16
Slide 17: 1H FY2022 Financial Highlights
1H FY2022 FINANCIAL HIGHLIGHTS For personal use only Record half year result on stronger spreads and robust demand Underlying EBIT1 Underlying EBIT Return Reported NPAT On Invested Capital2 A$2.20Bn 43.7% A$1.64Bn Up A$1.67Bn on 1H FY2021 Up from 11.0% in 1H FY2021 Up A$1.31Bn on 1H FY2021 Free Cash
Slide 18: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Embedding sustainability in all that we do For personal use only ResponsibleSteel™ Certification Climate Change • Port Kembla Steelworks (PKSW) and • Commenced collaborations with: steel processing sites awarded – Rio Tinto, to explore technical and ResponsibleSteel™ site c
Slide 19: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Embedding sustainability in all that we do For personal use only Inclusion and Diversity Sustainable Supply Chain 21% 21% 22% 23% 251 Suppliers engaged and assessed FY2019 FY2020 FY2021 1H FY22 Female workforce participation 46 Assessments completed in 1H FY2022 • Ensuring
Slide 20: Financial Strength, Guided by Our Financial Framework
FINANCIAL STRENGTH, GUIDED BY OUR FINANCIAL FRAMEWORK For personal use only Strong returns, a robust balance sheet and a disciplined approach to capital allocation Returns Robust Disciplined Focus Capital Structure Capital Allocation Targeting shareholder returns Focus on ROIC and free cash generati
Slide 21: Future Investment Priorities
FUTURE INVESTMENT PRIORITIES Indicative ~A$1.8bn of projects identified for growth, foundational For personal use only investment and to position the business for a low carbon future Recent investments ($M) Future investment priorities2 ($M) ~A$2.0Bn MetalX ferrous ~A$287M business acquisition ~A$1.
Slide 22: Summary and Conclusion
For personal use only Summary and conclusion 22
Slide 23: A Resilient Business Delivering Returns Through the Cycle
A RESILIENT BUSINESS DELIVERING RETURNS THROUGH THE CYCLE For personal use only 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 tr
Slide 24: Questions
For personal use only Questions 24
Slide 25: Bank of America Metals and Mining Conference Presentation
Bank of America For personal use only Metals and Mining Conference Presentation Tania Archibald Chief Financial Officer 17 May 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 Collins St, Melbourne, VIC, 30
BlueScope Steel — Bank of America Metals and Mining Conference 2022 on 6ix