Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Day (September 2022)
78 slides from Bluescope Steel's investor day presentation, Sep 21, 2022
Slide 1: BlueScope Investor Day September 2022
For personal use only BlueScope Investor Day 21 September 2022 Pictured: Australian National Maritime Museum, featuring COLORBOND® Ultra steel BlueScope Steel Limited. ASX Code: BSL in Woodland Grey in Kingspan® Benchmark ABN: 16 000 011 058 Evolution insulated panel Level 11, 120 Collins St, Melbou
Slide 2: Important Notice
IMPORTANT NOTICE This presentation should be read in conjunction with BlueScope’s 2022 Investor Day webcast (when For personal use only available), Climate Action Report, FY2022 Sustainability Report and Modern Slavery Statement, available at www.bluescope.com. This presentation is not and does not
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY For personal use only BlueScope acknowledges the Traditional Custodians of the land on which we work, live and operate. We recognise our First Nations Peoples who have inhabited Australia for millennia, their enduring connection to Country, sky, and waterways and their ric
Slide 4: Agenda
AGENDA Session 1 For personal use only • Introduction and Sustainability at BlueScope • The Age of Steel • Cracking the Green Iron Code • Climate Action Update • Australian Steel Products • Panel Q&A Morning Tea Break Session 2 • Health Safety and Environment • Inclusion and Diversity • Supply Chain
Slide 5: Sustainability at BlueScope
For personal use only Sustainability at BlueScope Mark Vassella (Managing Director & CEO) 5
Slide 6: What Matters to Us
WHAT MATTERS TO US Sustainability is at the core of all that we do. We focus on topics of For personal use only material impact to our long term success and our stakeholders Sustainable growth and transformation Safe, healthy and inclusive workplaces Climate action Responsible products and supply ch
Slide 7: Strong Governance Is Engrained in BlueScope's Culture
STRONG GOVERNANCE IS ENGRAINED IN BLUESCOPE’S CULTURE Our commitment to sustainable governance is led from the top, with clear accountabilities for For personal use only oversight and implementation of our sustainability commitments BLUESCOPE BOARD Health, Safety & Remuneration & Risk & Sustainabili
Slide 8: Collaboration Is Core to Our Approach
COLLABORATION IS CORE TO OUR APPROACH BlueScope is a small part of an enormous industry, yet has relationships with major players across For personal use only the global steel value chain Why is collaboration important? • The global steel industry produces 1.6 billion tonnes annually; BlueScope prod
Slide 9: Keeping Our Stakeholders Updated
KEEPING OUR STAKEHOLDERS UPDATED We seek to provide transparent and meaningful disclosure of our For personal use only approach and performance on material sustainability topics Disclosure aligned to key History of BlueScope’s sustainability disclosure frameworks and standards FY2002 FY2017 FY2021 B
Slide 10: Diverse and Talented Team
DIVERSE AND TALENTED TEAM For personal use only Presenting today: Mark Vassella Tania Archibald Gretta Stephens John Nowlan Chris Page Anna Matysek Managing Director & Chief Financial Chief Executive Climate Chief Executive Head of Future Head of Climate Change Chief Executive Officer Officer Change
Slide 11: The Age of Steel
For personal use only The Age of Steel Mark Vassella (Managing Director & CEO) 11
Slide 12: The Age of Steel: Used in Every Aspect of Our Lives
THE AGE OF STEEL: USED IN EVERY ASPECT OF OUR LIVES For personal use only The world's most important and efficient construction material; underpins sustainable development For more information, see page 9 & 10 of BlueScope’s 2021/22 Sustainability Report, available at www.bluescope.com/sustainable-s
Slide 13: The Age of Steel: Critical to the World's Future
THE AGE OF STEEL: CRITICAL TO THE WORLD’S FUTURE For personal use only A foundation for global decarbonisation; underpins renewable energy transition Estimated steel required for renewable energy infrastructure1 (tonnes per megawatt of capacity) 150t/MW 70t/MW 60t/MW 40t/MW Solar Onshore Wind Hydro
Slide 14: The Age of Steel: Inherently Circular
THE AGE OF STEEL: INHERENTLY CIRCULAR For personal use only Steel is central to a circular economy, given its strength, durability and recyclability The circular steel economy For more information, see page 12 & 13 of BlueScope’s 2021/22 Sustainability Report, available at www.bluescope.com/sustaina
Slide 15: The Age of Steel: The Role of Scrap
THE AGE OF STEEL: THE ROLE OF SCRAP For personal use only Will play a critical role in industry decarbonisation; but not enough scrap to meet steel demand Global Finished Steel Demand and Scrap Availability Outlook1 (million tonnes) 2,500 2,000 Global Finished Steel Demand 1,500 Global Scrap Availab
Slide 16: Cracking the Green Iron Code
For personal use only Cracking the Green Iron Code Chris Page (Head of Future Technologies) Anna Matysek (Head of Climate Change) 16
Slide 17: Recap: Current Steelmaking Technology
RECAP: CURRENT STEELMAKING TECHNOLOGY For personal use only 70% of the world’s steel is produced via the blast furnace route 2021 Crude Steel Production by Process1 Electric Arc Furnace (EAF) Uses electricity to melt a mix of scrap metal 23% and pig iron to produce recycled steel Blast Furnace - Bas
Slide 18: Recap: The Blast Furnace Process
RECAP: THE BLAST FURNACE PROCESS For personal use only The heart of the decarbonisation challenge for the steel industry is in ironmaking Raw Materials Ironmaking Steelmaking Continuous Rolling Flat Products Steel in Use Iron Ore (Blast Furnace) (Basic Oxygen Casting Furnace) Sintering Flat Products
Slide 19: The Ironmaking Decarbonisation Challenge
THE IRONMAKING DECARBONISATION CHALLENGE For personal use only The ironmaking chemical reaction: Now Fe2O3 + C Fe + CO2 • Carbon is key reductant in BF and natural gas DRI chemical reaction • Reaction is exothermic (produces heat), which supports the process Future? Fe2O3 + H2 Fe + H2O • Hydroge
Slide 20: The Steel Industry's Decarbonisation Challenge
THE STEEL INDUSTRY'S DECARBONISATION CHALLENGE For personal use only Key challenges: The world doesn’t have enough scrap for EAFs to replace blast furnaces ‘Cracking the code’: • Limited availability of iron ore for EAF-quality DRI • Breakthrough technologies need to be developed to viable, commerci
Slide 21: Cracking the Code: Raw Material Availability
CRACKING THE CODE: RAW MATERIAL AVAILABILITY For personal use only Low emissions ironmaking requires the availability of iron ore of suitable concentration and purity Australian ore bodies1 • Raw materials in the DRI process remain solid, meaning Hematite impurities are not removed (incl Goethite) M
Slide 22: Cracking the Code: Technology Evolution
CRACKING THE CODE: TECHNOLOGY EVOLUTION Hydrogen Direct Reduced Iron (DRI) is a potential technology solution, however is at early stages of For personal use only technology development, and requires supply of green hydrogen and consideration of ore supply H2 DRI – Melter – BOF H2 DRI – EAF Others •
Slide 23: Future Energy Landscape: Firmed Renewable Energy
FUTURE ENERGY LANDSCAPE: FIRMED RENEWABLE ENERGY Energy is a key enabler for iron and steel industry decarbonisation; competitively-priced, firmed For personal use only renewable energy is critical Renewable Firmed Competitively Priced Share of Renewables Indicative Electricity Profile BSL Average C
Slide 24: Future Energy Landscape: Green Hydrogen
FUTURE ENERGY LANDSCAPE: GREEN HYDROGEN Energy is a key enabler for iron and steel industry decarbonisation; low-cost green hydrogen will For personal use only underpin decarbonisation CCUS Brown hydrogen Grey hydrogen Blue hydrogen Green hydrogen Process Coal Gasification Steam Reforming Steam Refo
Slide 25: Vision of a Potential Ecosystem
VISION OF A POTENTIAL ECOSYSTEM For personal use only Wind Solar Hydro Export Hydrogen Electrolysis H2 H2 Storage Renewable Energy Electricity + - Offshore Wind Infrastructure Green Electricity Advanced Steel Manufacturing Precinct H2O Recycled Water Renewables O2 Fabrication Water Treatment Plant G
Slide 26: Recap: The Decarbonisation Challenge
RECAP: THE DECARBONISATION CHALLENGE For personal use only Steel industry decarbonisation will be enabled by: ‘Cracking the code’ ‘Future energy landscape’ Technology Raw Material Firmed, Hydrogen Evolution Supply Renewable Energy Availability Evolution of emerging and Access to appropriate Access t
Slide 27: Climate Action Update
For personal use only Climate Action Update Gretta Stephens (CE, Climate Change & Sustainability) 27
Slide 28: Recap: Climate Strategy
RECAP: CLIMATE STRATEGY For personal use only Climate action is a key component of our corporate strategy Use quality and cost-effective carbon offsets Reduce our GHG emissions only where direct abatement is not feasible Create carbon-efficient and climate-resilient Making the case for local, sustai
Slide 29: Recap: Climate Change & Sustainability Team
RECAP: CLIMATE CHANGE & SUSTAINABILITY TEAM Team supports the Board and ELT in developing and implementing BlueScope’s climate and For personal use only sustainability strategies Gretta Stephens Chief Executive Climate Change & Sustainability Chris Page Anna Matysek Tim Rodsted Head of Future Head o
Slide 30: BlueScope Targets and Goal
BLUESCOPE TARGETS AND GOAL Continuing our pursuit of emissions reduction projects in line with our 2030 For personal use only steelmaking and non-steelmaking targets 2030 Targets Steelmaking target: 92% of total emissions Non-steelmaking target2: 7% of total emissions GHG emissions intensity (tCO2-e
Slide 31: Our Indicative Decarbonisation Pathway
OUR INDICATIVE DECARBONISATION PATHWAY Taking a dual-stream approach; focus on both near term process asset optimization and longer-term For personal use only breakthrough technology Emissions baseline Optimising current operating assets Emerging technologies Hydrogen DRI Energy and Other process EA
Slide 32: Solid Pipeline of Climate Projects
A RANGE OF INITIATIVES UNDERWAY SOLID PIPELINE OF CLIMATE PROJECTS We continue to make good progress towards our targets and goal by optimising existing assets and For personal use only investigating emerging and breakthrough technologies Climate Project Pipeline1 (number of projects) Optimising exi
Slide 33: Project Examples: Port Kembla
A RANGE OF INITIATIVES UNDERWAY PROJECT EXAMPLES: PORT KEMBLA Significant number of projects across optimisation of existing assets and research For personal use only into emerging and breakthrough technologies Optimising existing assets Emerging and breakthrough technology • Carbon reduction digita
Slide 34: Project Examples: New Zealand
A RANGE OF INITIATIVES UNDERWAY PROJECT EXAMPLES: NEW ZEALAND Accelerating decarbonisation plans and actively evaluating technology options, For personal use only both short and longer term New Zealand Steel Iron and Steelmaking Process Raw Materials Ironmaking Steelmaking Iron Sands (Direct Reduced
Slide 35: Smart Solutions in Steel
SMART SOLUTIONS IN STEEL Our range of steel solutions can help support sustainable outcomes, For personal use only such as reduced embodied carbon and increased energy efficiency Our products and solutions can help enable sustainable outcomes CASE STUDY through Fielders SlimDek 210® • Provides a for
Slide 36: Australian Steel Products
For personal use only Australian Steel Products John Nowlan (Chief Executive, ASP) Dave Scott (General Manager Manufacturing, ASP) 36
Slide 37: Segment Overview
SEGMENT OVERVIEW For personal use only Integrated producer of premium branded flat steel products for domestic Australian segments Sites and Locations • Key asset at Port Kembla Majority of iron ore is sourced from the Pilbara • Advantageous access to raw materials and port Majority of coking coal i
Slide 38: Integrated and Resilient Business Delivering Returns Across the Cycle
INTEGRATED AND RESILIENT BUSINESS DELIVERING RETURNS ACROSS THE CYCLE For personal use only Australian steelmaking breakeven at bottom of cycle spreads; benefits from vertical integration Asian steel spread1 & estimated steelmaking The value of vertical integration cash breakeven2 (US$/t) 800 • Opti
Slide 39: Growth in Domestic Volumes
GROWTH IN DOMESTIC VOLUMES Supportive end-use segment demand complemented by product- For personal use only specific initiatives to realise structurally higher domestic demand ASP domestic sales – FY2013 to FY2022 (mt) CASE STUDY ~2.55mt Light gauge steel framing • Strong growth on the back of robus
Slide 40: Investing in Our Key Brands: COLORBOND Steel Refresh
INVESTING IN OUR KEY BRANDS: COLORBOND® STEEL REFRESH For personal use only Investment in our COLORBOND® steel brand and product continues to support inter-material growth • Major update of COLORBOND® steel colour palette in August • Carefully designed to reflect the Australian landscape and current
Slide 41: Adding Capacity to Support Growth
ADDING CAPACITY TO SUPPORT GROWTH Progressing a range of capacity addition projects across the business to enable further growth in For personal use only domestic demand Additional Metal Coating Line Plate Mill Modernisation • Feasibility study of a ~200ktpa • New processing equipment capacity line
Slide 42: Digital Technology Roll Out
DIGITAL TECHNOLOGY ROLL OUT CASE STUDY Rolling out digital technologies, such as robotics and automation For personal use only Optimising BOF Testing as we continue towards PKSW’s modern manufacturing future • Manual samples are taken for • A significant opportunity to deliver the next wave of custo
Slide 43: PKSW Abatement Projects
PKSW ABATEMENT PROJECTS Progressing a range of near- and longer-term abatement and For personal use only decarbonisation projects Current near-term abatement projects CASE STUDY Replacing coal with biochar Leveraging digital • BF and carbon digital twin model operational • Biochar has the potential
Slide 44: Port Kembla Blast Furnace Reline & Upgrade
PORT KEMBLA BLAST FURNACE RELINE & UPGRADE Securing the future of the business and bridging to new technology For personal use only with the BF6 reline and upgrade project • Feasibility study progressing well, update to be provided in Feb-23 • Reline provides PKSW a bridge to breakthrough lower emis
Slide 45: 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 For personal use only infrastructure, including investment in technologies to enable emissions abatement Installation of new Upgrade to automation Key downcom
Slide 46: Port Kembla Master Plan
PORT KEMBLA MASTER PLAN Developing a Master Plan to create a vision for the 200 hectares of For personal use only excess landholdings adjacent to the Port Kembla Steelworks Port Kembla Site Overview • 18-month program to create a ‘vision’ for the reimagination and transformation Recycling Area Hot M
Slide 47: ASP Summary
ASP SUMMARY ✔ Integrated For personal use only and resilient business, delivering returns across the cycle ✔ Structurally increased domestic demand over the last decade on intermaterial product growth ✔ Adding capacity across the business to enable further growth in domestic demand ✔ Investing in ro
Slide 48: Climate Change & ASP Q&A Panel
For personal use only Climate Change & ASP Q&A Panel Tania Archibald (Chief Financial Officer) John Nowlan (Chief Executive, ASP) Gretta Stephens (Chief Executive Climate Change) Anna Matysek (Head of Climate Change) Chris Page (Head of Future Technologies) Tim Rodsted (Head of Sustainability) 48
Slide 49: Sustainability Update
For personal use only Sustainability Update Deanne Howard (Head of Health, Safety and Environment) Rebecca Roberts (General Manager People, ASP) Andrew Watson (Head of Group Procurement) 49
Slide 50: What Matters to Us
WHAT MATTERS TO US Sustainability is at the core of all that we do. We focus on topics of For personal use only material impact to our long term success and our stakeholders Sustainable growth and transformation Safe, healthy and inclusive workplaces Climate action Responsible products and supply ch
Slide 51: Health, Safety and Environment
HEALTH, SAFETY AND ENVIRONMENT For personal use only Safe, healthy and inclusive workplaces are integral to the way we do business • Evolved our approach to reflect the inclusivity of our culture by enhancing capability and capacity • This evolved approach means we: – Focus on the presence of capaci
Slide 52: HSE Evolution
HSE EVOLUTION For personal use only Evolution program helps us learn from our people who make and handle our products The “Blue Line / Black Line” Model1 Better Questions, Stronger Solutions S T K Y E (What is the Stuff That Kills You or harms the Environment) Work as planned Normal work variability
Slide 53: Evolved Metrics
EVOLVED METRICS Balancing lag indicators to measure performance For personal use only and lead indicators for risk management CASE STUDY Risk Control Improvement Project: Debanding Robot • Risk control improvement project developed a solution to eliminate the safety risk of stored energy and manual
Slide 54: Environmental Aspirations
ENVIRONMENTAL ASPIRATIONS Risk management approach extends to environment; enhanced For personal use only aspirations CASE STUDY Blast Furnace Humidity Our evolved environmental aspirations Management Protecting the land • A new humidity control process was devised for the Blast Furnace, utilising h
Slide 55: Inclusion and Diversity
INCLUSION AND DIVERSITY For personal use only OUR INCLUSION AND DIVERSITY STRATEGIC APPROACH Safe to speak up Grow and support under-represented groups Community partnerships Inclusive leadership Measure our progress For more information, see page 31 of BlueScope’s 2021/22 Sustainability Report, ava
Slide 56: Improving Our Gender Diversity
IMPROVING OUR GENDER DIVERSITY An area where BlueScope has greatest opportunity to improve is how it reflects the communities in For personal use only which it operates, across all levels of the business Women in BSL workforce (%) 25% 33% • Continued to build an inclusive workforce which reflects th
Slide 57: In Focus: Inclusion & Diversity at ASP
IN FOCUS: INCLUSION & DIVERSITY AT ASP Guided by a clear strategy and key focus areas, recent years have For personal use only seen improvement– particularly in operator / trade gender balance ASP Gender Diversity ASP Inclusion & Diversity Strategy • Biggest increase seen in operator / trade roles;
Slide 58: Case Studies: Inclusion & Diversity at ASP
CASE STUDIES: INCLUSION & DIVERSITY AT ASP For personal use only A wide range of approaches to attract and retain a workforce reflective of our local communities “Blue Boots” Campaigns BOS Operations Pioneers STEM Industry School Partnership • The Port Kembla Basic Oxygen Steelmaking (BOS) plant rea
Slide 59: Our First Nations Framework
OUR FIRST NATIONS FRAMEWORK Sets out how we are seeking to impact change and address the For personal use only gap between Indigenous and non-Indigenous Australians • Have been engaging with First Nations communities for some time – Includes programs such as Jawun, Indigenous interns and Supply Nati
Slide 60: Our First Nations Framework
OUR FIRST NATIONS FRAMEWORK For personal use only Framework comprises four focus areas to drive change: Community Employment Employee Supply Chain Engagement 60
Slide 61: Supply Chain Sustainability
SUPPLY CHAIN SUSTAINABILITY We foster responsible business practices and For personal use only uphold human rights through engagement, risk assessment and improvement activities Our Approach We prioritise our engagement based on Prioritise supply chain and industry risk factors, as well as our lever
Slide 62: Managing Responsible Sourcing in a Complex World
MANAGING RESPONSIBLE SOURCING IN A COMPLEX WORLD COVID, global conflicts and supply chain constraints have increased responsible For personal use only sourcing risks across our supply chain Partnering with leading organisations to identify Supplier assessment approach and manage risk • ~13,000 suppl
Slide 63: Key Risk Areas in Our Supply Chains
KEY RISK AREAS IN OUR SUPPLY CHAINS For personal use only Risks and exposures monitored, with mitigating strategies being developed Risk category Potential exposure / risks Examples and actions Onsite contract Higher risk services; often attractive to • Higher risk potential services (e.g. cleaning,
Slide 64: Strengthening Our Approach
STRENGTHENING OUR APPROACH Progress in identifying and managing ESG risks in CASE STUDY For personal use only our supply chain is constantly evolving Security Services in Malaysia Beyond Assessments Local Malaysia procurement team collaborated with our • Initial focus on mapping direct supplier prof
Slide 65: Sustainability Q&A Panel
For personal use only Sustainability Q&A Panel Tania Archibald (Chief Financial Officer) Gretta Stephens (Chief Executive Climate Change) Deanne Howard (Head of Health, Safety and Environment) Rebecca Roberts (General Manager People, ASP) Andrew Watson (Head of Group Procurement) Tim Rodsted (Head o
Slide 66: Innovation Update
For personal use only Innovation Update Sean Wong (Manager, Product Innovation and Technology) 66
Slide 67: Long and Proud History of Innovation
LONG AND PROUD HISTORY OF INNOVATION For personal use only Over 50 years of innovation in products and solutions Innovation Highlights • COLORBOND® steel: innovated by BSL (Lysaght Pty Ltd) • Matt COLORBOND® steel: innovated by BSL • ZINCALUME® steel: invented in USA, innovated by BSL (Lysaght Pty L
Slide 68: Innovation Pipeline
INNOVATION PIPELINE CASE STUDY For personal use only Addresses current needs and anticipates those of the future Solar accelerator Pipeline approach • Brought together companies developing next-generation advancements in integrated solar cell technologies • Solar surfaces • Five start-ups were selec
Slide 69: Our People Are Our Strength
OUR PEOPLE ARE OUR STRENGTH For personal use only A global centre-of-excellence for our metallic-coated and pre-painted technologies Research, Development and Innovation • 86 scientists, engineers, physicists and mathematicians • 36 PhD and Masters qualified • Portfolio management and commercialisat
Slide 70: Understanding End-Use Segments
UNDERSTANDING END-USE SEGMENTS For personal use only Translating insights to desired products Channel engagement Material development • Selecting target segments / applications • Supporting product development • Tailoring communications – from direct customers to consumers • Translating feedback int
Slide 71: Supporting More Sustainable Product Solutions
SUPPORTING MORE SUSTAINABLE PRODUCT SOLUTIONS For personal use only Energy efficiency, durability and lower material intensity Thermal Efficiency for Roofing Applications ZINCALUME® steel with Activate® Technology • Thermatech®1 increases the solar reflectance of a roof made from COLORBOND® steel •
Slide 72: Leveraging Our Global Footprint
LEVERAGING OUR GLOBAL FOOTPRINT For personal use only Scaling technology platforms across BlueScope Transfer of COLORBOND® Steel Technology Transfer of Activate® Technology • COLORBOND® steel has continued to evolve over the • The Aluminium / Zinc / Magnesium metallic-coating was past 55 years, now
Slide 73: Supporting the Development of Key Standards with Robust Data
SUPPORTING THE DEVELOPMENT OF KEY STANDARDS WITH ROBUST DATA AND ANALYSIS For personal use only Guiding the national construction code using building physics research Building Codes are changing • Sustainability and climate action is driving building design changes • Understanding the changes, both
Slide 74: In Summary
For personal use only IN SUMMARY We are working across numerous innovation fronts with a pipeline of solutions that address customers needs today, anticipates the solutions desired by customers in the future, and sustains a high level of innovation capability 74
Slide 75: Innovation Q&A Panel
For personal use only Innovation Q&A Panel Tania Archibald (Chief Financial Officer) Gretta Stephens (Chief Executive Climate Change and Sustainability) John Nowlan (Chief Executive, ASP) Sean Wong (Manager, Product innovation and Technology) Tim Rodsted (Head of Sustainability) 75
Slide 76: BlueScope Investor Day September 2022
For personal use only BlueScope Investor Day 21 September 2022 Pictured: Australian National Maritime Museum, featuring COLORBOND® Ultra steel BlueScope Steel Limited. ASX Code: BSL in Woodland Grey in Kingspan® Benchmark ABN: 16 000 011 058 Evolution insulated panel Level 11, 120 Collins St, Melbou
Slide 77: Appendix
For personal use only Appendix 77
Slide 78: Examples of Projects in the Pipeline
A RANGE OF INITIATIVES UNDERWAY EXAMPLES OF PROJECTS IN THE PIPELINE We continue to make good progress towards our targets and goal by optimising For personal use only existing assets and investigating emerging and breakthrough technologies Phase Project Description Focus area Hydrogen ironmaking We