Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Corporate Update (December 2018)
45 slides from Bluescope Steel's corporate update, Dec 3, 2018
Slide 1: Investors' Visit to ASEAN Sites - Pack 3: NS BlueScope Vietnam
INVESTORS’ VISIT TO ASEAN SITES PACK 3: NS BLUESCOPE VIETNAM Nhut Vo Country President, NS BlueScope Vietnam December 2018 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058
Slide 2: Agenda
AGENDA 2 1 NS BlueScope Vietnam Overview 2 Macroeconomic Overview 3 Vietnam Coated Steel Market Overview 4 Segments, Products, Brands and Channels 5 Financial Drivers, Performance and Strategy 6 Retail Segment Strategy and Progress 7 Sustainability and Corporate Social Responsibility
Slide 3: NS BlueScope Vietnam Overview
NS BLUESCOPE VIETNAM OVERVIEW
Slide 4: Safety
SAFETY 4 Progress towards our goal of Zero Harm LTIFR BlueScope FY18 LTIFR: 0.62 Lost time injuries per million man-hours worked 0.0 0.0 0.0 0.0 FY2015 FY2016 FY2017 FY2018 BlueScope FY18 MTIFR: 5.4 MTIFR Medically treated injuries per million man-hours worked 0.9 1.0 1.0 0.0 FY2015 FY2016 FY2017 FY
Slide 5: Business Structure
BUSINESS STRUCTURE 5 This presentation will focus on the Vietnam business within the NS BlueScope JV BlueScope NSSMC 1 50% 50% NS BlueScope Coated Products (NBCP) A BlueScope controlled, and therefore consolidated, joint venture Thailand Indonesia Malaysia Vietnam North America (80%) 2 (100%) (100%)
Slide 6: Management Team
MANAGEMENT TEAM 6 Nhut Vo Country President Vietnam Tri Nguyen Bang Nguyen Thanh Truong Hung Dang Hai Truong Elizabelth Khoo Thuy Nguyen Corina Marodin President Lysaght VP Manufacturing VP Coated VP Marketing VP OHSE VP Commercial VP Human Resources VP Supply Chain
Slide 7: Our Footprint in Vietnam
OUR FOOTPRINT IN VIETNAM 7 Vibrant business in Vietnam with plenty of growth potential Ha Tay • Established in 1993, and is the newest coating facility in ASEAN • Leading player in Projects segment with large opportunity to grow in Retail • Developing channels to extend reach to diverse customer seg
Slide 8: Macroeconomic Overview
MACROECONOMIC OVERVIEW
Slide 9: GDP Growth
GDP GROWTH 9 Robust growth in personal consumption and GFCF forecast to continue GDP growth trajectory GDP expenditure by segment (trillion VND, real – base year 1988) Forecast +6% 4.46 4.19 3.93 3.70 3.48 3.26 +6% 3.05 2.88 3.07 2.88 2.70 2.70 2.41 2.54 2.53 2.16 2.29 2.20 2.37 2.05 1.91 1.65 1.75
Slide 10: Macroeconomic Drivers
MACROECONOMIC DRIVERS 10 Robust economic and construction outlook Real GDP growth (annual change, %) Forecast Construction work done (US$Bn, current) Forecast 7 80 6 70 +12% 67.0 60.6 5 60 54.7 50 47.7 4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 43.0 39.4 40 37.2 Foreign direc
Slide 11: Vietnam Projects
VIETNAM PROJECTS 11 Coca Cola – HCMC Mapletree – Bac Ninh Unilever – HCMC Vinamilk – Da Nang Maxport 9 Cargill – Binh Dinh
Slide 12: Vietnam Coated Steel Market Overview
VIETNAM COATED STEEL MARKET OVERVIEW
Slide 13: Coated Steel Products Market Structure
COATED STEEL PRODUCTS MARKET STRUCTURE 13 Highly competitive market; many producers integrated along the value chain Painted Coated Dong A Sunsco Dong A Sunsco Domestic Hoa Phat SY Hoa Phat Tan Phuoc Khanh Producers Lotus Tan Phuoc Khanh Lotus (~60%) TVP Phuong Nam TVP Phuong Nam Vina One Pomina Vin
Slide 14: Construction Market Structure
CONSTRUCTION MARKET STRUCTURE 14 The construction market is weighted towards painted roof and wall products in the retail sub-segment Product split (%) Projects & infrastructure Sub-segment split (%) 288kt 22% Zinc-Aluminium Galvanised 20% 25% 1,311kt Galvanised Painted 55% 56% 78% Retail 1,311kt 1,
Slide 15: Coated Products Value Chain
COATED PRODUCTS VALUE CHAIN 15 We serve three key segments through multiple channels Suppliers Processors and users Applications of the products (eg NS BlueScope) Resi / commercial MANUFACTURING SEGMENT Metal coated Painted manufacturers Such as frames, air ducts, truck body, etc GI, GL PPGI, PPGL L
Slide 16: Segments, Products, Brands and Channels
SEGMENTS, PRODUCTS, BRANDS AND CHANNELS
Slide 17: Segments
SEGMENTS 17 NS BlueScope Vietnam is focused on three key segments PROJECTS RETAIL MANUFACTURING Industrial and Commercial / Government SME and Residential Stud Frames and Cool Room Panels • Products: COLORBOND® and ZINCALUME® steel • Products: ZACS® • Products: BlueScope Stud frame and • High custom
Slide 18: Brands and Channels
BRANDS AND CHANNELS 18 A portfolio of diverse brands, specifically tailored for each channel Painted Metallic Coated Projects Retail ® ® ® ® ® Manufacturing STUD FRAME
Slide 19: Lysaght Products Brands and Channels
LYSAGHT PRODUCTS BRANDS AND CHANNELS 19 A wide range of products and brands to suite end markets across the building and construction sector Lysaght Roof and Wall Smartroof™ Industrial and Commercial Residential Agrished™ Industrial and Commercial Industrial and Commercial Smartruss® Composite decki
Slide 20: Financial Performance and Strategy
FINANCIAL PERFORMANCE AND STRATEGY
Slide 21: Financial Performance
FINANCIAL PERFORMANCE 21 Margin pressure from increased feed costs and higher import levels resulted in a lower EBIT in FY2018 Volume (Kt) Commentary on FY2018 performance: 148 126 129 132 • Demand in the Project segment remained strong. However, competition with imports mainly from China, and new c
Slide 22: NS BlueScope IGNITE Strategy
NS BLUESCOPE IGNITE STRATEGY 22 Overarching business strategy focussing on three key themes
Slide 23: Strategic Frameworks: Projects
STRATEGIC FRAMEWORKS: PROJECTS 23 Leading project segment with direct investor approach STRATEGIC FOCUS Brand and Innovation Channel Products 1 2 3 Deliver innovative solutions to Develop and enhance through- Reaffirm position as a leader in further underpin brand equity in channel relationships, fo
Slide 24: Strategic Initiatives: Projects
STRATEGIC INITIATIVES: PROJECTS 24 Reaffirm position as a leader in the development of new products with AM coating launch Coating technology developments 2019 2007 2015 AM technology ZINCALUME® Anti Darkening Sumo Polyester Benefits include: • More effective and longer lasting corrosion resistance
Slide 25: Strategic Frameworks: Rollforming
STRATEGIC FRAMEWORKS: ROLLFORMING 25 A leading company providing premium branded products and innovative steel inspired solutions TARGET Increase coated and painted pull-through margin and grow our rollforming volume and EBIT STRATEGIC FOCUS 1 2 3 INNOVATION SALES CAPABILITY CHANNEL EXPANSION • Agri
Slide 26: Strategic Initiatives: Agrished
STRATEGIC INITIATIVES: AGRISHED™ 26 Innovative new Lysaght® Agrished™ solution set to increase demand within and outside existing channel Agriculture segment continues to grow and there is an emerging market trend of hi- tech large scale farming. Lysaght® Agrished™ provides customers with solutions
Slide 27: Strategic Initiatives: Innovation
STRATEGIC INITIATIVES: INNOVATION 27 Investing in development of innovation capabilities through the NS BlueScope Vietnam business Training staff on: 2018 Achievements: • Design thinking Employee 63% engagement • Customer insights Business • Problem solving improvement 842 • Lean process ideas • Dri
Slide 28: Retail Segment Strategy and Progress
RETAIL SEGMENT STRATEGY AND PROGRESS
Slide 29: Development of the Retail Model
DEVELOPMENT OF THE RETAIL MODEL 29 NS BlueScope has been at the forefront of development in the retail market, with an evolving retail model 2005 2010 2012 2015 2016 2017 2018 Retail Started to sell directly Retail pilot to focus on Authorized Dealer Enhanced ZACS® retail model Continued focus on Di
Slide 30: ZACS Authorised Dealer Set Up
ZACS® AUTHORISED DEALER SET UP 30 The set up of ZACS® Authorized Dealerships is an important milestone and further underpins growth in retail Differentiated branded store and Continuous communication customer channel improvement and innovation ZACS® Retail Model: A combination of brand, channel and
Slide 31: Strategic Frameworks: Retail
STRATEGIC FRAMEWORKS: RETAIL 31 Integrated engagement across value chain to build our ZACS® brand VISION ZACS® to be the most premium coated and painted steel brand of first choice for rural retail customers STRATEGIC FOCUS CHANNEL BRAND INNOVATION 1 2 3 4 Maintain ZACS® premium Expand our point of
Slide 32: Strategic Initiatives: Expand ZACS Lite
STRATEGIC INITIATIVES: EXPAND ZACS® LITE 32 ZACS® Lite: a low cost Authorised Dealer model, focusing on the mid-premium rollforming segment Strong growth in presence Dealership locations ZACS® store ZACS® lite store 130 25 North 15 Red River Consistent in-store display 25 Central 65 11 12 30 South E
Slide 33: Strategic Initiatives: Channel Engagement
STRATEGIC INITIATIVES: CHANNEL ENGAGEMENT 33 Strong focus on engaging local builders and contractors as key advocators for ZACS® NSBSV Local Builders database (23,000 Builders) Professional Reputation Recognition & design skill and business and Incentive development development • Loyalty program • P
Slide 34: Strategic Initiatives: Brand Awareness
STRATEGIC INITIATIVES: BRAND AWARENESS 34 Driving communication initiatives to quickly generate brand awareness Initiatives to increase brand awareness TV SPONSORSHIP DIGITAL DATA CAMPAIGN “MAI DEP NHA SANG” SITE OUTDOOR • Utilising the best prime time for brand • Latest AI technology – sample profi
Slide 35: Innovation in Retail Offering
INNOVATION IN RETAIL OFFERING 35 Innovation is a key foundation in our offer and solidifies our position as a premium supplier 2013 2015 2018 New Tier 2 Introduce ZACS® ZACS® painted product of SV Truss Gen III upgrade launch Introduce ZACS® with better colour Fengshui Wrinkle quality 2012 2014 2016
Slide 36: Sustainability and Corporate Social Responsibility
SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY
Slide 37: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 37 A key focus for NS BlueScope Vietnam Our Vision: To be a leader in creating a External Engagement Internal Engagement sustainable environment and community 100% customer awareness 100% employee awareness • 4mil kg CO2 saving in 8 years ~ 3% CO2 saving YoY 3R progra
Slide 38: 3R Program
3R PROGRAM 38 Program to reduce emissions, reduce water use and reduce waste at the Phu My plant CO2 reduction 3% FY2019 Reduction in fresh water consumption 3% KPIs Reduction in waste 5% Action plan focus areas • Liquid Waste • Solid Waste • Domestic Waste • Fresh Water Employee engagement • Regula
Slide 39: Green Development
“GREEN” DEVELOPMENT 39 Promotional and educational activities to increase adoption of green buildings through the channel “SUSTAINABILITY” AWARD “GREEN BUILDING” SHARING “GREEN BUILDING” SOLUTION Integrated GREEN solutions 10 Green Building workshops for specifiers New Co-organised by: “ Comfortable
Slide 40: Sustainable Products
SUSTAINABLE PRODUCTS 40 The COLORBOND® journey to become the leader in “green” products in Vietnam 2013 2014 2015 2016 2017 • COLORBOND® Thermatech® • Member of Vietnam green • Become the member of US • Green Building conference • Co-operation with green launch with solar reflective building council
Slide 41: Lifting Rural House Standards
LIFTING RURAL HOUSE STANDARDS 41 Using our position as a leading and innovative supplier through the value chain to improve building standards Rural house gallery Initiatives Engagement with local specifiers Workshops for local builders UNIQUE “RURAL • Website for rural house design FORUM HOUSE DESI
Slide 42: ZACS House Donation
ZACS® HOUSE DONATION 42 Engaging with channel partners and customers to provide homes to those in need BSZ authorized dealer engagement Initiatives BlueScope ZACS® builder engagement ZACS® Donation house Donation Scheme PR Activities • Focus on promoting image of our key partners including Authorise
Slide 43: Safety Sharing
SAFETY SHARING 43 Creating opportunities and networks in which to share safety initiatives and best practice Company engagement in HSE sharing Initiatives Customer engagement in HSE best practice Customer engagement in Safety partnership event MASS SHARING IN KEY PROVINCES BEST PRACTICE SHARING PART
Slide 44: Diversity and Inclusion
DIVERSITY AND INCLUSION 44 A strong focus area that has shown improvement in performance over the past few years Recent initiatives Case study: Diversity Partnerships • Unconscious Bias Training rolled out • NS BlueScope Vietnam was the gold • Round table discussion open to all employees covering to
Slide 45: Investors' Visit to ASEAN Sites
INVESTORS’ VISIT TO ASEAN SITES PACK 3: NS BLUESCOPE VIETNAM Nhut Vo Country President, NS BlueScope Vietnam December 2018 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058