Bluescope Steel Limited · ASX:BSL
Bluescope Steel — FY2003 Earnings Presentation
28 slides from Bluescope Steel's earnings presentation, Aug 28, 2003
Slide 1: Annual Results Presentation
BHPSTEEL : Annual Results Presentation kiny Adams Managing: Director and Chie Executve Offer ‘Brian Kruger, Chief Finan al Officer 28 August 2003
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 BSL SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFORMAT
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Slide 4: Creating Shareholder Value in a Difficult Industry
~ Creating Shareholder Value in a Difficult Industry A DIFFERENT KIND OF STEEL COMPANY BSL Annual 02/03 Presentation Page 4
Slide 5: FY2003 - A Very Good Start for BSL
_FY2003-AVeryGoodStartforBSL Seized market opportunities and drove business improvements * Revenue $5.3 billion First time above $5.0 billion. * Despatches 6.8 million metric tonnes Record shipments. * NPAT $452 million + EPS 57.1¢ « DPS 22¢ Fully Franked Scheme Booklet Forecast was 20¢ 0/40% Franki
Slide 6: Safety - World Class Performance
Safety-World Class Performance Further 30% improvement in Lost Time Injury Frequency Rate... Our Goal is Zero Harm injuries resulting in lost time per million man-hours worked 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 * Inciudes contractors from 1996 BSL Annual 02/03 Presentation P
Slide 7: Increased Financial Performance Across All Segments
Increased Financial Performance Across All Segments _ 1 FY02 m@ FY03 500 - 471 «PKSW 400 4 - Slab - HRC - Plate + NSBHP (50%) 2 300 - + Castrip 2 + Western Port = * Springhill 2 + Packaging Products 200 - + Service Centres *Lysaght 119 100 4 rc 84 44 = 0 t —— , 4 r : 1 Hot Rolled Products New Zealan
Slide 8: Driving Business Improvement Across All Segments
_ Driving Business Improvement Across All Segments « Business excellence framework inventory Turnover BSL Annual 02/03 Presentation
Slide 9: Geographic Diversity: Flexibility, Strength and Platform for Growth
Geographic Diversity: Flexibility, Strength and Platform for Growth Shift in mix towards Asia on 12% overall increase in despatches USA (NSBHPS) Australia 13% Americas Total Export 38% NZ Asia Pacific gy, 4% BSL Annual 02/03 Presentation USA (NSBHPS) 13% M% Americas 13% < Other Total Export ae 37% A
Slide 10: Australian Market Diversity Remains a Strength
Australian Market Diversity Remains a Strength Construction remains at 46% as Australian Despatches Increase by 12% Automotive & Transport Pili 13% Construction Non-Dwellings 22% Automotive & Transport 13% Construction Non-Dwelilings Manufacturing Manufacturing 22% 22% Construction Dwellings 18% Con
Slide 11: Downstream Product Diversity Sets Us Apart
_ Downstream Product Diversity Sets Us Apart Vertical Integration Provides Flexibility to Respond to Market Demand 6.0 - 5.0 - Coated, Tin, Painted 2 4.0 - & Roll Formed & 3.0 4 < 4 2.0 - 05 CRC & Plate 1.0 - HRC 0.0 + Slab 2001/2002 2002/2003 BSL Annual 02/03 Presentation
Slide 12: Improved Global Steel Market and Industry Structure
- Improved Global Steel Market and Industry Structure Stronger Euro/higher imports Weak demand Consolidation benefits Russia/Ukraine Steel consumption growth continues Tariffs New capacity Net importer Olympics and World Expo Consolidation continues Scrap/energy prices Section 201 Weak demand Japan
Slide 13: Create Shareholder Value
Create Shareholder Value — Total Shareholder Return Downstream Growth — Value Added Branded Products Regional Focus — Our Footprint BSL Annual 02/03 Presentation
Slide 14: Strategy - Shifting Product Mix Downstream
Strategy - Shifting Product Mix Downstream * Value added coated, painted and roll-formed branded products, solutions and services West Sydney Plant Design - Pre-Engineered Buildings - Smartruss™ - Powerdek™ - Tileform® - Automotive Blanking Galvaspani Colerbond PrimaDesa’ Wf. Zincalume BSL Annual 02
Slide 15: Strategy - Building Upon Unique Production and Marketing Footprint
Strategy — Building Upon Unique Production and Marketing Footprint Annualised production capacities and approved growth 7 Vietnam 6 Thailand MC 125kt ‘old Rolling 300kt Painting 50kt Metal Coating 175kt Painting 90kt Brisbane Painting 88kt Port Kembla / Springhill Malaysia Raw Steel 5.imt Metal Coat
Slide 16: Vietnam - Strategy in Action
Vietnam — Strategy in Action LYSAGHT HA TAY FACTORY SALES+ OFFICES - ie - - . LYSAGHT BIEN HOA FACTORY METALLIC COATING & PAINTING SITE BSL Annual 02/03 Presentation
Slide 17: First Year Journey
First Year Joumey - Annual Release - Higher Final Dividend (100% Franked) - Special Dividend (100% Franked) - Vietnam Coating & Painting Facility Employee Share Plan Lo : - February/March 2003 Half Year - Interim Dividend (100% Franked) ~ NPAT >$400m - Buy-back 10% shares - 2China Roll-formers BSL A
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Slide 19: Profitable Through the Cycle
~ Profitable Through the Cycl * Capitalising on strong market and operational performance A$ Millions 19991) 2000) 2001 = 2002) 2003 Revenue 4,849 4,898 4,941 4,593 5,302 EBITDA® 525 711 568 412 881 EBIT®@ 257 445 305 ; 160 611 Net Profit : ; 45203) EPS (¢) 57.14) (1) 1999 to and including 2002 norm
Slide 20: Variance - FY2003 vs. FY2002
Variance - FY2003 vs. FY2002. Superannuation - $32m Name Change - $20m Restructuring - $21m 1000 900 $17m [rawnzrznre) ) = co 700 ($88m) oo” 600 ($90m) §00 2 & 400 = w 300 < 200) $160m 100 June 02YTD = Export Domestic Volume/ NSBHPS = Conversion Raw Exchange Other June 03 YTD Actual Prices Prices Mi
Slide 21: Balance Sheet - Strength and Flexibility
Balance Sheet- Strength and Flexibility = = = As at 30 June A$ Millions Pro-Forma 2002 2003 Assets Cash 155 91 Receivables 625 650 Inventory 678 698 Other Assets 221 228 Net Fixed Assets 3,223 3,086 Total Assets 4,902 4,753 Liabilities Creditors 557 493 Interest Bearing Liabilities 754 168 Provision
Slide 22: Improved and Tax Effective Returns to Shareholders
- Improved and Tax Effective Returns to Shareholders * Share buyback — Up to 10% of ordinary shares (79.3m) - 12 months to March 2004 - Purchased to: > 30 June 2003 - 8.3m shares > 27 August 2003 - 21.9m shares * Ordinary Dividend - Interim — 9¢ fully franked - Final—13¢ fully franked / payable on 1
Slide 23: Consistently Strong Cash Flows
/ Co ssistently Strong Cash FI 5 ws A$ millions 1999 = 2000") = 2001 = 2002 ~—=—-2003 Net operating cash flow before 725 715 631 381 763 borrowing costs and income tax Net investing cash flows - Capital expenditure (191) (90) (105) (162) (183) - Other (20) 10 (6) 8 18 2) Net cash flow before financi
Slide 24: Results Remain Sensitive to BSL's Realised Hot Rolled Coil Prices
Results Remain Sensitive to BSL’s Realised Hot Rolled Coil Prices _ Impact on forecast EBIT for the year ending 30 June A$ millions 2003 2004 Assumption +/- US$25 / tonne movement in BSL’s average realised HRC price” 104 76 +/~1¢ movement in Australian dollar / US dollar exchange rate®) 10 13 +/- US
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Slide 27: A Very Good Start For...
—AVery Good StartFor... * SHAREHOLDERS * CUSTOMERS * COMMUNITIES * EMPLOYEES BSL Annual 02/03 Presentation Page 27
Slide 28: BHP Steel Annual Results Presentation
BHPSTEEL : Annual Results Presentation kiny Adams Managing: Director and Chie Executve Offer ‘Brian Kruger, Chief Finan al Officer 28 August 2003