Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (November 2004)
88 slides from Bluescope Steel's investor presentation, Nov 10, 2004
Slide 1: Asian Building & Manufacturing Markets Presentation - November 2004
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Slide 2: Asian Building & Manufacturing Markets
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Slide 3: Presentation Outline
Presentation Outline 1. Overview & Strategy 2. Facilities and Processes 3. Products and Markets 4. Financials 5. Strategy 6. Summary 7. Core Business Overview Asian Building & Manufacturing Markets Page $
Slide 4: Performance
Performance — AG Millions 1999 2000 2001 2002 2003 2004 Asian Building & Manufacturing Markets Page 4
Slide 5: Safety Performance
Safety Performance LTIFR - Combined FY2004 Performance * 20 + LTPs: None (Sep YTD) 5 « MTP: Six (Sep YTD) 10 * Statistics: 5 + 6,020,634 hours since the last LT| *"s a ga 8 @ 8 3 ee 5 5 8 3 3 228239322553 2933 * YTD LTIFR = 0, YTD MTIFR = 1.7 ane = * < 8 + Low but improving audit involvement at Butl
Slide 6: Safety Indicators
Safety Indicators +3 million hours LT| Free - China * 1.15 million hours MTI Free - Malaysia +2 million hours LTI Free - BSI *1 million hours LTI Free - Phu My, Vietnam + 0.5 million hours LT| Free - MCL2 Thailand + Brainstorming session to identify major hazards at site A clear focus on and discipl
Slide 7: Delivering High Value Steel Inspired Solutions and Creating Shareholder Value
“Delivering High Value Steel Inspired Solutions and Creating Shareholder Value” * Ongoing year on year Revenue and EBIT growth despite cyclical steel prices and foreign exchange movements * China metallic and painting facility on budget | on schedule * Thailand metallic coating expansion on budget /
Slide 8: Increasing our Value Add
Increasing our Value Add Asia Butler China acquisition & leverage Geographic & product China, Indonesia, Thailand & Vietnam / Metallic: China, Indonesia, | Coated Thailand & Vietnam “Hot Rolled Coil, Plate Asian Building & Manufacturing Markets
Slide 9: Asia is the Core Growth Region for BlueScope Steel
* Asia is the Core Growth Region for BlueScope Steel - Maintain a prioritised portfolio of * Build on the successful track growth opportunities record of backward integration following establishment of + Discipline strong market positions - Optimise existing assets and in-fill capability gaps - Clea
Slide 10: Asia Building & Manufacturing
Asia Bung & Manufactur _ + Market leaders offering Portfolio of markets — Metallic coated ~ Multi-domestic & export — Pre-painted steel — Solutions to the building & construction + Well developed channels to market markets tailored to specific market needs * Through * Focus on customer service and ~
Slide 11: Downstream Growth — Value added branded products
Downstream Growth — Value added branded products fet! Colerbond Zincalume [YSAGHT BlueScope Butler China Zinc Hi-ten Interior Gemilang Abadi’ PrimaDesa’ PrimaMaju" Asian Building & Manufacturing Markets
Slide 12: Asia Growth Strategy
Asia Growth Strategy Building and construction strategy overview Asian Building & Manufacturing Markets Demand Creation _ Pre-engineered buildings Residential Decking & purlins Sandwich / architectural panel Non-steel material replacement New market segments (e.g. HiRib) Specific country/cluster ini
Slide 13: Asia Growth Strategy
-— AsiaGrowth Strategy Building and construction strategy overview Greenfield Growth Solutions expansions New coating/painting lines New Countries M&A- opportunities in Asian Building & Manufacturing Markets Page 14
Slide 14: Asia Growth Strategy
Asia Growth Strategy Building and construction strategy overview Pre-engineered buildings Capacity increases ; Speed up lines Brownfield : Expand existing facilities oo Construct additional facilities Gr owth: New products into existing facilities Asian Building & Manufacturing Markets
Slide 15: Capacity Increases
Capacity Increases Country Capacity (MT) Capacity (MT) Metal Coating Line Paint Line (Nameplate/Current) (Nameplate/Current) Indonesia (1995) 100,000 / 100,000 25,000 / 50,000 Malaysia (1997) 150,000 / 160,000 60,000 / 70,000 Thailand (1998) 150,000 / 175,000 60,000 / 90,000 +200,000 Asian Building
Slide 16: Our Strategic Objective
Our Strategic Objective : “Profitably Grow our Asian Business Focussing on Branded Products to the Building and Construction Market” Demand — Creation — Greenfield — Growth Asian Building & Manufacturing Markets Page 16
Slide 17: Competitive Advantages
Competitive Advantages - Financial Capability _ Geographic Reach (Cash, EBIT and Capital ; | Management Focus) Knowledge Transfer Modern, World Class across BlueScope Steel Facilities _ (Technical Expertise) tomer / Market Premium Brands Focus “BlueScope Steel, Golorbond, Zincalume, Lysaght, etc.) E
Slide 18: Business Overview
Business Overview Asian Building & Manufacturing Markets
Slide 19: BlueScope Steel Business Segments
BlueScope Steel Business Segments « Lowest quartile producer « Leading supplier of flat steel in Australia « Global scale o Port Kembla Steelworks o North Star BlueScope o Castrip » Only fully integrated flat steel maker in New Zealand » Leading domestic market share of flat products Asian Building
Slide 20: Current Business Model
Current Business Model Mike Courtnall President Asian Building & Manufacturing Markets “Country = Country Country Country | President _ President President | President § Pr EL functionss _ Indo esia _ Malaysia Ly Thailand Vietnam ee ina _ Development | Coating Line & | | Buller, Lysaght China _ Coat
Slide 21: Management Team
Management Team Mike Courtnall President Asian Building & Manufacturing Markets MicAosss RobCrawiord «=i Gary Hook ian Dickson __ Peter Wilson i . Chris Fogarty / President President President President = /—“<‘éesicdcnt—=§ =O OP tesicf“nt | BullerChina _ Indonesia _ Malaysia | Thalend Nieman | China
Slide 22: Facilities and Processes
Facilities and Processes Asian Building & Manufacturing Markets
Slide 23: Geographic Unique Footprint
_ Geographic Unique Footprin China MC Line Development 250 kt Paint Line Development 450 kt Lysaght: + Shanghai, Guangzhou, Langfang, Chengdu, Taiwan + 2 Butier PEB Manufacturing facilities, 7 Butter district offices, 17 Butler sales offices + 60 Lysaght & CSC Sales offices Employees 4625 BSL intere
Slide 24: Employees Pre and Post Butler China and Announced Expansions
Others Pre Butler China Post Butler China and Announced Expansions (31 January 2004} Others 230 China Vietnam 347 Vietnam 117 China 1525 Indonesia i 326 Indonesia we “ Total 2,350 Thailand Total 3,713 780 Malaysia 506 Malaysia 506 a) China includes Taiwan (69) b) Malaysia includes Brunei (16), Singa
Slide 25: Announced expansions — employees growth
Announced expansions — employees growth — The three upcoming metallic coating facilities will add: + 300 employees in China + 80 employees in Thailand + 230 employees in Vietnam Bringing the total of employees in our Asian operations to 3,713 Asian Building & Manufacturing Markets
Slide 26: Deliver innovative building and construction solutions
* Deliver innovative building and construction solutions * Strong customer working partnership to realize forefront innovativeness + Local expertise, full support, value-add emphasis Asian Building & Manufacturing Markets
Slide 27: Downstream Solutions - Decking, PEBs, Residential
Downstream Solutions- Decking, PEBs, Residenta Asian Building & Manufacturing Markets
Slide 28: OEE AD Ween sey as CSS ASA Ned MRR RRS
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Slide 29: LOOT GE ae LEO ea
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Slide 30: BlueScope Butler Solution Manufacturing
—BlueScope Butler Solution Manufacturing Asian Building & Manufacturing Markets
Slide 31: Page
ii Asian Building & Manufacturing Markets Page 31
Slide 32: Building & Manufacturing Markets
Building & Manufacturing Markets
Slide 33: Facilities and Processes
_ Facilities and Processes - é Slabs from BlueScope Steel L. Hot Rolled Coil to Thailand Produced all x ‘Metal ae TrOauUCct . 7 me ee _ Sealy a A Customers — Reduction Painting. | Imported aie Lee HRC 20% Other all y China j Metal —f - BSM Coating TN customers. Paifting ‘Metal 7\_\ BS| _ Coating ~_—
Slide 34: Asian Building & Manufacturing Markets
Asian Building & Manufacturing Markets
Slide 35: Market Focused
- Market Focused | Roofing and Walling Market PRIMARY FOCUS NEW PRODUCTS BRANDS Asian Building & Manufacturing Markets
Slide 36: Market Focused
Market Focused . Aggressive segment marketing based on product and - > a brand development to access new markets a — Clean Colorbond® aa ; Pelangi™ Business Model - — Rainbow" Gemilang _—— Painted Appliance™ PrimaDesam™m Interior - Colorbond® Shutterex PrimaMaju™ Very broad product ot ulerex P-Zac®
Slide 37: Brand Families
Brand Familie ey Ge BLUESCOPE BLUESCOPE BUTLER LYSAGHT KLIP-LOK® ne SPANDEK® wo <t [YSAGHT —TRIMDEK® —— VIsTAWALL “te CUSTOM ORB® a Acchitectural Products ne PANELRIB® ae oe MULTICLAD® “ty Asian Building & Manufacturing Markets Page 3?
Slide 38: Channels to Market
Channels to Marke Coating Line Sales : * 80% direct sales to roofing and walling manufacturer (rollformers) * 10% direct sales to general manufacturers e.g. consumer electrical * 10% via distributors Lysaght Sales : * Different channels depending upon market characteristic such as: * market business
Slide 39: Financials
Financials — Asian Building & Manufacturing Markets
Slide 40: Overview
— Overview * BlueScope Steel has been active in manufacturing in Asia for 40 years * Initial capital on coating in Indonesia, Malaysia & Thailand was A$376m * Some A$57m was written down in respect of the Thailand operations between 1998 and 2002 ¢ Under capacity utilisation for many years. Now at f
Slide 41: Diligent Capital Approval Process
_ Diligent Copitl Approval Process T T T 7 asain iaatoahtabaanatna [etree eevee iat ete a f é ays : HEL Bisnis Key Process Docyments Process Manual dor Projects >93M) Ete Mate Copnibiiets Woe Samco FN Supporting Procedures | Project Value Analy fifications Mechanistic Procedures der Asian Building &
Slide 42: Robust Project Review System
Robust Project Review System * Monthly Reporting * Quarterly Review System * Key Management Team Members * Independent Consultant * Learnings shared across projects * Risk reviews completed * Construction reviews completed * Major Review every 6 Months Asian Building & Manufacturing Markets Page 42
Slide 43: A$ Millions
AG Millions 1999 Asian Building & Manufacturing Markets 2000 2001 2002 2003 2004
Slide 44: Financial Performance
__ Financial Performance (A$ Millions) 1999 2000 2001 2002 2003 2004 Revenue 420 450 556 530 569 689 EBITDA 19 37 81 96 109 122 EBIT (9) 11 54 71 84 100 Capital Expenditure 6 - 6 22 36 113 Asian Building & Manufacturing Markets
Slide 45: Financial Performance (continued)
Financial Performance (con * Continued focus on manufacturing excellence * Improved delivery performance * Shortened lead times * Increased inventory * Focussed cost reduction plan Asian Building & Manufacturing Markets Pane 48
Slide 46: BlueScope Steel Thailand
- BlueScope Steel Thailand Sa MAT 7M) Asian Building & Manufacturing Markets
Slide 47: BlueScope Steel Thailand
~ BlueScope Steel Thailand Locations: - Coating Line Map Ta Phut - Marketing Office Bangkok : * Shareholders: Ordinary _ | -Bhiene Mal — BlueScope Steel 75% - Loxley Public Company 25% | Phieanuiok = * Capability: Pees as - Pickle Line 400,000 tpa _Naihon Bayan OO CAE : ~ Cold Mill 300,000 tpa Nakho
Slide 48: BlueScope Steel Thailand
BlueScope Stee! Thailand * Project status -Monitoring progress - On schedule > Monthly with senior Asian management. - On budget - Market demand — very strong «Main contractors * Bilfinger Berger * Voest Alpine Asian Building & Manufacturing Markets
Slide 49: Page left blank intentionally
page left blank intentionally Asian Building & Manufacturing Markets
Slide 50: PLN RO IU PAG LADS MAD IEE WOM GAO eNO OL LE LE SLE
PLN RO IU PAG LADS MAD IEE WOM GAO eNO OL LE LE SLE mee KES MESS CON A Di Oe ee Lo ee OULU ee Eee Le yf ues cope | ‘teal | ne onesi LE I Le a 2 LL A EO EL EE EEO ee cs ,.DDhLUrUrmr”rt—“‘“‘“‘“‘<‘<‘i<i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘( éél | Bile y pas Ope vie al Indone ao EE L
Slide 51: BlueScope Steel Indonesia
~ BlueScope Steel Indonesia Locations: - Coating Line Cilegon - Marketing Offices Jakarta, Surabaya + Shareholders: — BlueScope Steel (since Jan 03) 100% is Capability: - Metallic Coating Line 100,000 tpa Kalimantan L - Paint Line 50,000 tpa SSE Shae Ss ese) : First Commissioned: 1995 BlueScope Lysa
Slide 52: BlueScope Lysaght Indonesia—New Site
BlueScope Lysaght Indonesia—New Site * Replace outgrown 31 year old facility * Combined warehouse with coating line * Showcase facility, utilising safety drive through concept, new solutions layout, SMARTRUSS light design system * Located in MM2100 Industrial Estate, Cibitung, Jakarta * Cost A$4.9m
Slide 53: BlueScope Indonesia Paint Line Expansion
BlueScope Indonesia Pai rt Line Expansion * Increased capacity by another 25ktpa Completed January 2004 Fully loaded within two months of commissioning Market demand remains strong Asian Building & Manufacturing Markets © | Page 54
Slide 54: BlueScope Steel Malaysia
-_BlueScope Stee! Malaysia tof i: Asian Building & Manufacturing Markets
Slide 55: BlueScope Steel Malaysia
- BlueScope Steel Malaysia * Location: Kapar * Shareholders: — BlueScope Steel 60% — PNB Equity Resource Corp. 40% * Capability: ~ Metallic Coating Line 160,000tpa — Paint Line 70,000tpa * First Commissioned: ~ Paint Line 10/96 : a — Metal Coating Line 3/97 : - KUALA ok vantan | : * BlueScope Lysagh
Slide 56: BlueScope Steel Malaysia Plant Extension
BlueScope Steel Malaysia Plant Extension _ : atte MEGASPAN building designed in BlueScope Steel Thailand . Ensure plant is capable of full capacity . De-bottleneck despatch area . Wind out off-site storage Cost A$1.8m + Completed on schedule and under budget Asian Building & Manufacturing Markets .
Slide 57: BlueScope Steel Vietnam
_ BlueScope Steel Vietnam Locations: — Coating Line (approved Aug '03) Ho Chi Minh —Lysaght Ho Chi Minh, Hanoi * Shareholders: —BlueScope Steel 100% * Coating Capability: — Metallic Coating Line 125,000 tpa — Paint Line 50,000 tpa — Zinc-aluminium alloy coating technology utilised at site will be fi
Slide 58: BlueScope Steel Vietnam
-BlueScope Stee! Vietnam ~~ Construction of metallic coating & painting facility * Project status -Monitoring progress - On schedule > Ongoing - On budget > Monthly with senior Asian management. » Main contractors - Market demand — very strong * Leighton’s * Kawasaki Heavy industries Asian Building
Slide 59: lL Le EL
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Slide 60: Page left blank intentionally
page left blank intentionally Asian Building & Manufacturing Markets
Slide 61: Lysaght Pacific
Lysaght Pacific + BlueScope Steel’s ownership in Lysaght Asia & Pacific businesses — 30% to 100% * Footprint covers Fiji, New Caledonia, and Vanuatu * Strategic channel to market and market influencing role + Reputation as market leaders with outstanding products and brands * Traditional markets: In
Slide 62: BlueScope Steel Building Solutions
BlueScope Steel Building Solutions BLUESCOPE LYSAGHT + We have been on the PEB solutions journey for 6 years + We have developed some very creative solutions * Large, column free buildings (MEGASPACE) + New design centre in Thailand + Moving more sales into solutions * Our purchase of Butler rapidly
Slide 63: MEGASPACE Building Erection
_ MEGASPACE™ Building Erection Asian Building & Manufacturing Markets
Slide 64: MEGASPACE Building Erection
MEGASPACE™ Building Erection if (i Win," Asian Building & Manufacturing Markets Page 64
Slide 65: MEGASPACE Building Erection
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Slide 66: BROS MA BU WIEN RAPIER SOY NABI RH ALA ERRNO L CM ARRAS OI
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Slide 67: Building & Manufacturing Markets
Building & Manufacturing Markets
Slide 68: MEGASPACE Building Erection
MEGASPACE™ Building Erection (he Asian Building & Manufacturing Markets Page 6t
Slide 69: SSE OC UALR SNARE NERAT VEU PSY INABA AN ENA ARS ARUE REALE SS
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Slide 70: MEGASPACE Building Erection
MEGASPACE™ Building Erection Asian Building & Manufacturing Markets Page 70
Slide 71: Le Le Wiese
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Slide 72: Lo Le | a
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Slide 74: BlueScope Butler Solutions
" BlueScope Butler Solutions oat Ot Xiamen International Convention Center: 18,500 sqm Asian Building & Manufacturing Markets
Slide 75: Marketing
: Marketing + Improved Clean COLORBOND launched Nov 2004 “ comons + Residential marketing project with increased momentum CLEAN COLORBOND" STEEL . . . . 2004 COMMUNICATION PROGRAM + Decking project now focusing on concrete frame opportunity Wf = bONIGER LASTING EFFECTS Asian Building & Manufacturing
Slide 76: School in New Clean COLORBOND
Schoo! in New Clean COLORBOND® G ae ae NS Ne iif iil _ Asian Building & Manufacturing Markets Page 76
Slide 77: Residential Market
Residential Market « Residential focus on total solution package — steel framing, roof cladding, flooring, accessories * Housing reform, improving income levels, urbanisation and changing preference of accommodation type opening up market opportunities * Economic outlook, growing population, need fo
Slide 78: Residential Market
Residential Market ae NIN 7861 Metal , Tile ' profile Smartruss ” SS TS22 Ceiling board RS Soffit - Panelrib Novaline Ceiling (not by BiueScope (existing BlueScope Lysaght Fascia batten Steel) product) Asian Building & Manufacturing Markets
Slide 79: Product Development — Decking Asia
- Product Development — Decking Asia - PowerDek is a new decking product targeting new markets requiring longer spanning lengths (up to 6 meters) - Rounds out our decking product offer - Successful launch in Singapore, Malaysia & Hong Kong - Strong initial sales and interest - Launch in China schedu
Slide 80: Decking Asia
Decking Asia. * Decking projects won include the Xinghe Tower, Pratunam Complex, Beijing TV Tower, KL Performance Arts & Theatre Academy, Nanjing Subway Building amongst others * Featuring application across Bondek, W-Dek, Powerdek * Marketing campaigns targeting engineers and architects Asian Build
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BlueScope Steel — Investor Presentation (November 2004) on 6ix