Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Merger or Acquisition (December 2007)
25 slides from Bluescope Steel's merger presentation, Dec 20, 2007
Slide 1: BlueScope Steel Agrees to Acquire IMSA Steel Corp North America
For personal use only DELIVERING VALUE UNDER OUR NEW BLUEPRINT - BLUESCOPE STEEL AGREES TO ACQUIRE IMSA STEEL CORP NORTH AMERICA Presentation to Investors Paul O’Malley, Managing Director and CEO Brian Kruger, President North America, Corporate Strategy and Innovation 20 December 2007
Slide 2: Important Notice
Important Notice For personal use only 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.
Slide 3: Transformational acquisition for BlueScope Steel in North America
Transformational acquisition for BlueScope Steel in North America For personal use only • BlueScope Steel has agreed to acquire the outstanding shares of IMSA Steel Corp from Ternium S.A, a NYSE-listed public company. • IMSA Steel Corp has four distinct businesses in North America: – Varco Pruden (V
Slide 4: Transaction consistent with strategy of increasing US building products presence
This transaction is consistent with our strategy of increasing BlueScope’s presence in the US building products and solutions market through brownfield For personal use only capacity expansions and M&A The principal transaction details are: • BlueScope will acquire the outstanding shares of IMSA Ste
Slide 5: Funding
Funding For personal use only • Transaction to be funded via a 12 month bridge facility • Gearing (net debt basis): − Will increase by approx 8% − Acquisition is expected to take us outside our 30-35% target gearing range to between 38-40% by June 2008 (assuming 100% debt funding) − Equity is availa
Slide 6: Confident in ability to deliver value in North American construction market
We are confident in our ability to deliver value in the North For personal use only American construction market • Both Butler NA and the IMSA Steel Corp businesses are predominantly exposed to the non-residential construction market. • Expect steady long term growth for non-residential construction
Slide 7: Consolidated historical financials
Consolidated historical financials For personal use only US$m YE Dec 31 2005 2006 Total Sales Revenue (incl. inter- $1,135 $1,265 company sales) Total EBITDA (normalised) $53.7 $86.1 Depreciation and Amortisation (2) $23.1 $23.9 Total EBIT $30.6 $62.2 Notes: (1) Results have been normalised to remov
Slide 8: Extensive geographic coverage and product diversification in North America
Extensive geographic coverage and product diversification in North America Tacoma For personal use only WA Spokane Kalama Las Vegas Salt Lake St. Joseph WA WA NV City, UT MO Evansville Galvamet WI Shelbyville, IN Salem Anchorage OR AK Sacramento CA (2) Richmond Coating Facilities VA Building Compone
Slide 9: Expecting significant synergies to be achieved
Expecting significant synergies to be achieved For personal use only DELIVERABLE strategies identified to leverage BlueScope Steel’s North American operations and IMSA Steel Corp businesses: 1• Additional product sales through the existing distribution networks with greater product and geographic di
Slide 10: Vertically integrated business and outstanding builder network
The acquisition provides BlueScope with a vertically integrated For personal use only business and outstanding builder network y Steelscape currently purchases approx. 235kt of hot rolled coil from Port Kembla; y Butler, VP Buildings, ASC Profiles and MetlSpan purchase approx. 70kt from Steelscape y
Slide 11: Combined Butler / HCI / VP Buildings manufacturing footprint
The combined Butler / HCI / VP Buildings manufacturing footprint gives For personal use only BlueScope Steel’s North American PEB business geographic diversity The acquisition provides BlueScope Steel Varco Pruden Plant with manufacturing capacity in the high Butler Manufacturing volume Midwest Regi
Slide 12: Summary
For personal use only Summary • High quality assets providing a platform for further growth in North America • Significant value creation opportunities provided by the combination of the four businesses and existing assets in North America • EPS accretive in first full-year of ownership (FY2009) Tra
Slide 13: Supporting Information: Description of IMSA Steel Corp businesses
For personal use only Supporting Information: Description of IMSA Steel Corp businesses
Slide 14: Varco Pruden (VP) Buildings – overview
For personal use only Varco Pruden (VP) Buildings – overview • U.S based premium branded PEB manufacturer • Extensive distribution network comprising of over 1,000 authorised builders • Broad product offering for many applications • Strong engineering and design capabilities through the Varco Pruden
Slide 15: Types of VP Buildings
Types of VP Buildings For personal use only Manufacturing Warehouse Educational Aircraft Hangars Churches Community VP Buildings is one of the largest steel pre-engineered metal buildings companies in North America 15
Slide 16: VP Buildings - production overview
VP Buildings - production overview For personal use only Sales by End-Use 2006 (tons) Agricultural Farm Storage Manufacturing 5% 1% 20% Other 22% 14% Commercial 10% Government 28% Community Production Capacity (000’s tons) Frames Total Alabama 22,500 55,500 California 17,500 43,103 Missouri 22,500 5
Slide 17: Steelscape - overview
Steelscape - overview For personal use only • 490,000 tons per annum of metal coating capacity and 365,000 tons per annum of painting capacity – Cold Mill and Pickling lines at Kalama feed metal coating and painting lines at Kalama, Washington and Ranco Cucamonga, California with potential to feed t
Slide 18: Steelscape - Kalama facility in Washington
Steelscape - Kalama facility in Washington For personal use only 18
Slide 19: Steelscape - facilities and production assets
Steelscape - facilities and production assets For personal use only Ranco Cucamonga, CA Major Production Assets • 240,000 ton/yr capacity metallic coating line • 110,000 ton/yr capacity paint line • 80,000 ton/yr capacity slitter line • 20,000 ton/yr capacity embosser Kalama, WA • 600,000 ton/yr cap
Slide 20: MetlSpan – Overview
MetlSpan – Overview For personal use only • Leading manufacturer of insulated building products, supplying to the refrigeration and construction markets in the US and Canada • Five manufacturing facilities located in – North Las Vegas, Nevada – Lewisville, Texas – Midlothian, Texas – Shelbyville, In
Slide 21: MetlSpan products
MetlSpan products For personal use only Commercial and Industrial Panels ThermalSafe Panel Cold Storage Panels 21
Slide 22: MetlSpan - production overview
MetlSpan - production overview For personal use only 2006 Sales by Product Line Commercial and Industrial Panels 36% Cold Storage 64% Panels Production Capacity Plant Size Capacity (sf) (square feet) Lewisville, Texas 91,800 21,250,000 Prince George, Virginia 101,400 18,750,000 North Las Vegas, Neva
Slide 23: ASC Profiles
ASC Profiles For personal use only • Leadership position in steel building products in western United States • 10 manufacturing facilities • ASC Profiles operates three building product lines – AEP Span (with plants in Tacoma Washington, Fontana California and Dallas Texas, this division manufacture
Slide 24: ASC Profiles - production overview
ASC Profiles - production overview For personal use only 2006 Sales by Product Line (tons) ASC Building Products ASC Steel Deck 23% 35% 42% AEP Span Production Capacity (000’s tons) 47,120 41,270 39,200 29,542 30,800 25,404 13,445 12,411 10,790 10,293 Anchorage Spokane Salem Salt Lake Sacramento Tac
Slide 25: BlueScope Steel Agrees to Acquire IMSA Steel Corp North America
For personal use only DELIVERING VALUE UNDER OUR NEW BLUEPRINT - BLUESCOPE STEEL AGREES TO ACQUIRE IMSA STEEL CORP NORTH AMERICA Presentation to Investors Paul O’Malley, Managing Director and CEO Brian Kruger, President North America, Corporate Strategy and Innovation 20 December 2007
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