Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Corporate Update (October 2006)
32 slides from Bluescope Steel's corporate update, Oct 5, 2006
Slide 1: BlueScope Steel
BLUESCOPE STEEL
Slide 2: Coated & Building Products Australia
Coated & Building Products Australia - Western Port, Hastings BlueScope Water Illawarra Coated Products, Port Kembla BlueScope Lysaght Service Centres Page @
Slide 3: Western Port History
Western Port History Why Western Port? + Deep water port * Energy from Bass Strait and Latrobe Valley * Key southern states customers in the automotive, white goods, drum manufacturing and building industries Milestones 1970: Victorian Government approval for a steel plant on 700 Hectare site at Has
Slide 4: Western Port
Wes - Experienced workforce with strong depth of process knowledge * Majority of auto products now metal coated (MCL6) * One of Victoria's safest and environmentally sustainable manufacturing sites * Major employer on the Mornington Peninsula * New production records through the Metal Coating and Pa
Slide 5: Western Port Plant Material Flow
Western Port Plant Material Flow == Hot Strip Mil —143Mta —— ‘Pickle Line Hot Rolled Pickled 16. _ sie Cold Mill —— 10Mia Metal Coating Lines | batkta ~~ Paint Lines 330 kta Capacities represent current maximums
Slide 6: Furnace
Furnace Process: Output: Capacity: Finishing Slab from Port Kembla is reheated to 1250°C, then descaled, rough rolled to 25mm thick, coiled at the coilbox to retain heat, finish rolled to customer order thickness, then cooled for metallurgical properties and coiled Hot Rolled coils to export and dom
Slide 7: Roughing Mill
Roughing Mill Page?
Slide 8: Roughing Mill
SAD RUS KEAN SAD - _ . oo ey 5 4 Lo ee pe a Roughing Mill
Slide 9: Entering Coil Box
Entering Coil Box Page?
Slide 10: Exiting Coil Box
Exiting Coil Box Page 1¢
Slide 11: Finishing Mill
7 . _ _ ay _ Te D y Finishing Mill
Slide 12: Recoilers
Recoilers Page 12
Slide 13: Continuous Line Concept
~ Continuous Line Concept eNnTAY ACCUMULATOR There are a number of continuous lines at Western Port: . Pickle Line ‘ 3 Metal Coating Lines . 2 Paint Lines Page 13
Slide 14: Pickle Line
Pickle Line Process: Output: Capacity: PICKLE TANKS Hot rolled coil is processed through hydrochloric acid tanks to clean scale from the strip and is then side trimmed to the required width Sold as hot rolled pickled coil, or further processed at the Cold Rolling Mill 115Mia =f paxil fl Page 14
Slide 15: Cold Rolling Mill
Cold Rolling Mill Process: Output: Capacity: Hot rolled pickled coil is fed into the Cold Rolling Mill (five stands) that applies roll force (2500t) and tension to the strip reducing the thickness of the strip by up to 80% Sold as cold reduced uncoated steel, or further processed at the Metal Coatin
Slide 16: Batch Annealing and Temper Rolling
Process: Cold reduced coils are Batch Annealed, Temper rolled (Coil Temper Mill CTM) and Tension Levelled (Tension Leveller Recoil Line TLRL) to impart the desired mechanical properties, shape and surface finish Output: Sold as uncoated steel products for the automotive and manufacturing industries,
Slide 17: Metal Coating Lines (No.4, No.5 and No.6)
Metal Coating Lines (No.4,No.5andNo.6) enTe . sriTenen EATRY wenn om FIR oa Skin Passing MEW. COATING Process: Cold reduced coils are hot dipped coated with ZINCALUME® coating (Nos 4 & 5 Lines) or galvanised (zinc) coating (No 6 Line) to provide corrosion protection Output: Sold as ZINCALUME® coil o
Slide 18: Paint Lines
rT LATOR Ext AscUML : \ 4 \ aTITcHeA ENTRY PROCESS ZONES ENTRY WELOBR OF RATA Laminating Process: Uncoated or metal coated strip is thoroughly cleaned and chemically treated to provide best surface to apply a primer coat followed by a finish coat of paint, via roller application, which is then oven
Slide 19: Safety Performance
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Slide 20: Environment and Community
Environment and Community Environment * Recertified to ISO 14001 October 2005 « EPA Accredited Licence since June 1996 * New Environmental improvement Plan (2006-2011) presented to EPA * 2006 Tidy Town Award winner * EPA recognition of reduction in prescribed waste * Achieved stretch target for ener
Slide 21: Our Markets and Supply Chain
Our Markets and Supply Chain Building & Construction Western Port Direct Domestic | . SAAMI Service | Centres i i a i stsnsnanensaanmnnntanennnn ren | Export III <vosnannaninnn ‘nena | Distributors i Off-shore customers | Automotive | % i « Lmncnasmnnnnosonnsnunmnnniy
Slide 22: Our Markets and Solutions
Our Markets and Solutions Markets — FY 2006 * Building market + Branded product price increases implemented + Dwelling soft in NSW, strengthening in Victoria and strong in QLD and WA + Non-dwelling remains strong * Manufacturing and distribution markets + Lost market share in commodity products — po
Slide 23: Our Product Range
Our Product Range years and building Deautifully Made Only By BlueScope Stee!
Slide 24: Manufacturing Excellence
Manufacturing Excellence Stakeholder Promises Conversion |, #9) Con Performance Chain Wolk Teams Velocity : = i Co Process | Asset — . Capability | Utilisation Operating d / Discipline Platform Page 24
Slide 25: Delivery Performance
Delivery Performance 98/99 99/00 01/02 02/03 03/04 04/05 05/06 Customer Complaints 94/95 95/96 96/07 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 Inventory LLL 00/01 01/02 02/03 03/04 04/05 05/06 Hot Strip Tonnes per Employee Hite 00/01 01/02 02/03 03/04 04/05 05/06 06/07 Page 23
Slide 26: Manufacturing Excellence - Earning Our Future
_ Manufacturing Excellence - Earning Our Future « The essential platform that underpins all manufacturing activities * Learning from within, learning from others * — Training focus * — Engaging our workforce through line communications * Focus on uptime * — Alliance now fully in place * Balancing as
Slide 27: Cost Profile
Cost Profile $/Tonne * 2005 — increased Feed and Coating costs principally due to higher slab prices * 2006 — lower feed costs but higher zinc and aluminium costs 01/02 02/03 03/04 04/05 05/06 i Feed & Coating - principal costs are slab, zinc and aluminium O Selling & Administration i Conversion Cos
Slide 28: Hot Strip Mill Fire Recovery
Hot Strip Mill Fire Recovery v Chose to undertake repair work ourselves using Western Port electricians and operators v Tremendous employee support to repair the Hot Strip Mill and maintain customer supply Y Hot Strip Mill resumed operation safely, on time and on budget v Delivery Performance recove
Slide 29: Workforce Reform
~ Workforce Reform Employee Numbers HT * Workforce flexibility (plant and equipment) * Crew based initiatives improving 00/01 01/02 02/03 03/04 04/05 Absenteeism (shifts absent per annum per employee) LL 08/06 operating efficiencies and costs * Alliance performance - maintenance schedule adherence i
Slide 30: Going Forward
- Going forward - (our focus is: \ |= Take 2 - 100% of the time, no exceptions i = Employee involvement — __ incident reporting, audits, | training and projects / networks | = Zero environmental _ _ exceedances \ / a WO AWSUSIAAOD of _zeroham _ Supply Chain solutions. . _ / Our focus is: Delivering
Slide 31: Western Port - Earning Our Future Together
“Western Port —- Earning Our Future Together”
Slide 32: BlueScope Steel
BLUESCOPE STEEL