Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Corporate Update (May 2023)
34 slides from Bluescope Steel's corporate update, May 24, 2023
Slide 1: BlueScope US Site Visit Day 2
BlueScope For personal use only US Site Visit Day 2 24 May 2023 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058 Level 11, 120 Collins St, Melbourne, VIC, 3000
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: Agenda Day 2
AGENDA DAY 2 For personal use only Session 1 • Buildings North America • BlueScope Properties Group Break and Q&A Session 2 • BlueScope Coated Products Lunch Break and Q&A Site Tour • BlueScope Coated Products (Middletown Site) 3
Slide 4: Buildings North America
Buildings For personal use only North America Susan Stark (President, BlueScope Buildings North America) 4
Slide 5: Business Overview
BUSINESS OVERVIEW Buildings North America designs and supplies engineered building solutions into the large and stable low-rise non-residential US construction segment, under leading brands Butler® and Varco Pruden™ For personal use only Business overview Manufacturing footprint • Designs, engineers
Slide 6: BlueScope North America Strategy
BLUESCOPE NORTH AMERICA STRATEGY Our Vision for North America: We are a growth-oriented, integrated steel solutions provider differentiated by our strengths in customer focus, premium branded products, safety and sustainability For personal use only Steelmaking / Cold Rolling & Building Pre-engineer
Slide 7: Buildings North America Strategy
BUILDINGS NORTH AMERICA STRATEGY For personal use only TRANSFORM GROW DELIVER Transform our offering to our Maximise our growth potential Deliver excellence and value to customers by focusing on their through our dual brands, strong our customers, shareholders and needs, centering around: builder ne
Slide 8: Builder Network
BUILDER NETWORK Our 2,000+ strong network of builders use our premium brands and proprietary design software in the construction segment to win work and add value in the construction process For personal use only Strength of builder network built on differentiation Builder network • National network
Slide 9: End-Use Segments
END-USE SEGMENTS BlueScope Buildings North America is exposed to end-use segments that are well positioned to benefit from key trends For personal use only End-use segment exposure Well positioned to benefit from key trends Strength in e-commerce: Agriculture, Export & Other • Driving demand for dat
Slide 10: New Product Development
NEW PRODUCT DEVELOPMENT Increasing focus on key end-use segments to grow in the industrial and commercial segments while expanding beyond traditional pre-engineered buildings to unlock further growth opportunities For personal use only Product Development Process Enhancements Customer Insights Innov
Slide 11: Case Study: Hybrid Conventional Solution for Commercial Warehousing
CASE STUDY Success of Hybrid Conventional Solution for Commercial Warehousing For personal use only • Progressing a large-scale project encompassing two sites, being: – A four-building complex, totalling ~28,000m2 and – A single building of ~140,000m2 • Project features Butler®’s new LogistX™ produc
Slide 12: Driving Efficiency and Growth
DRIVING EFFICIENCY AND GROWTH Utilising technology to enhance productivity; focusing on stability and growth in earnings For personal use only Investing in modernisation and automation Volume and margin initiatives • Focusing capital investment on manufacturing automation • Further penetration into
Slide 13: Sustainability
SUSTAINABILITY Fostering safe and inclusive workplaces; collaborating to improve emissions performance For personal use only Health and safety Inclusion and diversity Climate action • Focusing on engineered safety BBNA workforce participation: • Designing products that reduce controls that are usabl
Slide 14: BlueScope Properties Group
BlueScope For personal use only Properties Group Matthew Roth (President BlueScope Properties Group) 14
Slide 15: BlueScope Properties Group
BLUESCOPE PROPERTIES GROUP BPG utilises BBNA’s capabilities and strong builder network relationships to develop Class-A industrial properties BPG utilises BBNA’s capabilities and strong builder network relationships to develop Class-A industrial properties For personal use only What we do • BPG deve
Slide 16: BPG's Target Customers
BPG’S TARGET CUSTOMERS Serving the large and growing industrial warehousing and distribution segment For personal use only The segment we serve US industrial transactions volume1 (US$Bn) • The industrial asset class is a large, 140 attractive and growing segment of the commercial property 120 develo
Slide 17: Comprehensive Risk Management
COMPREHENSIVE RISK MANAGEMENT BPG tracks key measures to assess portfolio health and has options to respond to changing conditions For personal use only Indicators monitored Options to address market shifts Comprehensive risk management • Industrial warehouse segment: • Defer projects and selectivel
Slide 18: BPG Case Study
BPG CASE STUDY Sanford logistics center – a 12,000m2 Distribution Facility in Sanford, FL For personal use only Project timeline Jan-19: Due diligence and entitlement work Apr-19: Signed lease agreement Jul-19: Acquired land Aug-19: Commenced construction May-20: Completed development and commenced
Slide 19: Q&A
For personal use only Q&A Mark Vassella (Managing Director and Chief Executive Officer) Kristie Keast (Chief Executive North America) Mark Scicluna (Acting Chief Financial Officer) Susan Stark (President, BlueScope Buildings North America) Matthew Roth (President, BlueScope Properties Group) 19
Slide 20: BlueScope Coated Products
BlueScope For personal use only Coated Products John Kuzdal (President BlueScope Coated Products) 20
Slide 21: Business Overview
BUSINESS OVERVIEW BlueScope Coated Products (BCP) is the second largest metal coil painter in the US, with seven strategically located sites For personal use only Business overview Footprint • Manufacturing capabilities include a broad range of painting finishes for steel and aluminium substrates •
Slide 22: BlueScope North America Strategy
BLUESCOPE NORTH AMERICA STRATEGY Our Vision for North America: We are a growth-oriented, integrated steel solutions provider differentiated by our strengths in customer focus, premium branded products, safety and sustainability For personal use only Steelmaking / Cold Rolling & Building Pre-engineer
Slide 23: BlueScope Coated Products Strategy
BLUESCOPE COATED PRODUCTS STRATEGY For personal use only TRANSFORM GROW DELIVER • Deliver safety improvements • Introduce single-bill to • Grow hot rolled painted coil and continue to drive the transform the business model business by developing customer BlueScope safety culture as demand for the of
Slide 24: Products and End-Use Segments
PRODUCTS AND END-USE SEGMENTS Strong financial performance with sales mix focused on building and construction end-use segments For personal use only Products End-use segments Light Gauge Painted Coil Building and • Produced through the toll painting on customers steel and 79% construction aluminium
Slide 25: The US Painted Coil Industry
THE US PAINTED COIL INDUSTRY Significant opportunity exists in the U.S. painted industry for BlueScope, with locations in key regions where demand exists for painted metal coils For personal use only Segment size Located in key end-use demand regions • Total demand is ~4.5mt with 2% CAGR since 2015;
Slide 26: US Painted Coil Industry Dynamics
US PAINTED COIL INDUSTRY DYNAMICS Light gauge painted coil segment in Eastern U.S. is evolving from a pure ‘toll’ model to add ‘single-bill’ offerings; branded products a longer-term opportunity For personal use only • Eastern U.S. primarily supplied by Toll Painting Customer Journey independent tol
Slide 27: BlueScope Coated Products Value Proposition
THE BLUESCOPE COATED PRODUCTS VALUE PROPOSITION For personal use only Customer value categories and elements • Exceptional customer service • Broad coil painting capabilities. Differentiated Ease of Doing (speed, responsiveness) Offer Business • Ability to offer both toll & single-bill • Full servic
Slide 28: Near Term Initiatives
NEAR TERM INITIATIVES Targeting ~US$12M of operational and supply chain synergies by year three For personal use only Near term synergies (US$M, year three) Supply chain optimisation • Link in with North Star as a supplier to hot rolled lines ~25% • Like order consolidation • Consolidation of purcha
Slide 29: Progress on Acquisition Business Case
PROGRESS ON ACQUISITION BUSINESS CASE Most significant challenges have been in the areas of Supply Chain and IT Transition For personal use only Successes Challenges • Employee conveyance was successful; • Hot rolled business supply chain employees excited to join BlueScope – Inherited high-priced,
Slide 30: Safety and Sustainability
SAFETY AND SUSTAINABILITY BlueScope resources are being utilised to execute on key safety and sustainability opportunities For personal use only Safety – Key Areas Addressed Sustainability Initiatives • Mobile equipment • Thermal oxidizer (Middletown, OH) – Designated forklift zones, added virtual w
Slide 31: Summary
Summary For personal use only Mark Vassella (Managing Director and Chief Executive Officer) 31
Slide 32: In Summary
IN SUMMARY BlueScope is well placed to deliver strong returns and growth in the US For personal use only 1 The US is a great place to make and sell steel products with positive supply and demand trends 2 BlueScope is well positioned to take advantage of these trends given end-market exposures 3 Outs
Slide 33: Q&A
For personal use only Q&A Mark Vassella (Managing Director and Chief Executive Officer) Kristie Keast (Chief Executive North America) Mark Scicluna (Acting Chief Financial Officer) John Kuzdal (President BlueScope Coated Products) 33
Slide 34: BlueScope US Site Visit Day 2
BlueScope For personal use only US Site Visit Day 2 24 May 2023 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058 Level 11, 120 Collins St, Melbourne, VIC, 3000