Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (November 2006)
46 slides from Bluescope Steel's investor presentation, Nov 20, 2006
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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
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Slide 4: History of BlueScope Steel Thailand
History of BlueScope Steel Thailand Largest investment of any Australian company in Thailand = 1988 - BlueScope Lysaght (Thailand) Limited was founded as a joint venture between BlueScope Steel Limited and Loxley public Company Limited, Thailand's leading trading company #1995 - BlueScope Steel (Tha
Slide 5: BlueScope Steel Thailand
- BlueScope Steel Thailand Locations: —Coated Steel Facility Map Ta Phut —Marketing Office Bangkok —Lysaght Sales Office Chiang Mai / Songkla —Lysaght Factory Rangsit / Khon Khen -Smartruss/Butler/Purlin © Map Ta Phut + Employees: 876 * Comprises two principal businesses: —BlueScope Steel (Thailand)
Slide 6: Direct Reports to President Thailand
Direct Reports to President Thailand Peter Wilson President Thailand Simon Smart Somkiat Pintatham Voraphol Angsulapiwat Gregory John Moffitt President President Vice President Sales Vice President BiueScope Steel BiueScope Lysaght Marketing & Thailand Business Development Thailand Geoffrey Kernick
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Slide 8: BlueScope Steel (Thailand) Limited
BlueScope Steel (Thailand) Limited Locations: ~ Coated Facility Map Ta Put — Marketing Office Bangkok + Shareholders: Ordinary _ Incl. Prefs ~ BlueScope 75% 87.5% ~ Loxley Public Company 25% 12.5% * Capability: ~ Pickle Line 400,000 tpa ~ Cold Rolling Mill 350,000 tpa ~ Metallic Coating Lines 375,00
Slide 9: Direct Reports to President BlueScope Steel (Thailand) Limited
Direct Reports to President BlueScope Steel (Thailand) Limited _ Simon Smart President BlueScope Steel Thailand Uncosted Manutacturn Greg Harris Peter De Gruyter Warren Ritchi Manager § Goated Manulacturing Plant Service & Projects Beam Fabrication anager Engineering Manager Manufacturing Manager So
Slide 10: BlueScope Steel Thailand - Maptaput site today
BlueScope Steel Thailand - Maptaput site today ee WEEE, wee,
Slide 11: Safety - Significant achievement
Safety - Significant achievement « 18 Million Hours LTI Free on August 2006 » Last LTI on 29 October 1996 WEEE, Page 44 Sire, Page 14
Slide 12: Safety - Lagging indicators
Safety — Lagging indicators oa co | 1996 1997 1998 1999 ©2000 =. 2001 2002 = 2003S 2004 = 2005 = 2006 = 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 DRRSOOUG: sae STUEE. Per million hours
Slide 13: Caution Zone
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Slide 14: Safety - Our improvement plan
Safety — Our improvement plan a O oO = 3 S > oO wD =. mm => wo Cc om ep) QO oO oO @D w~ oe oO © Oo [o) Qu. fen) Oo —h vU x @ 2 as) MD Safety Leadership Program Contractor Management Safety Audit Improvement Driver safety WEEE, f 4, SLE. Page 14
Slide 15: Environment
Environmen = ISO 14001:2004 Accreditation by Lloyds = BlueScope Steel Environment Compliance Register = Environmental Monitoring Program = Employee Physical Checkup = Energy Saving Program
Slide 16: Production flow and capacities
Pickle Line Hot Rolled Pickled Strip 400 Ktla a Metal Coating Lines Metal Coated Strip 375 Ktla Painted Strip Cold Mill 350 Ktla Uncoated Strip Paint Line 90 Kt/a WEEE, _ SLE. ome
Slide 17: BlueScope Steel plant raw material sources
_ BlueScope Steel plant raw material sources Major input costs are hot rolled coil, coating metals and paint. 1. 2. WEEE, SLE. Hot Rolled Coil « The majority of BlueScope Steel Thailand’s hot rolled coil requirements are sourced from the Sahaviriya Steel Company (SSI) and BlueScope Steel's operation
Slide 18: Production Lines - Overview
Production Lines - Overview __ ERTRY PICELE LINE SOLO BELLING WALL WETALLIC CORTING LINE PAINT LIME HOT ROLLED cok HOT HOLLER PICKLED AND OILED COLO ROLLED COHL METALLIC CORTED STEEL PREPAINTED STEEL WRIOOUG, Sete Page 18
Slide 19: Production Line - Pickle Line
- Production Line Pickle Line Process : Hot Rolled Coil is processed through hydrochloric acid tanks to clean scale from the strip and is then side trimmed to the required width Output : Further processed at the Cold Rolling Mill or sold as hot rolled pickled and oiled coil Capacity: 400 Kt/a PRREGE
Slide 20: Production Line - Pickle Line tension leveller
_ Production Line - Pickle Line tension leveller * Tension leveller installed during 2006 and commissioned in October + Key benefits are * |mproved strip shape to increase yield and throughput on Cold Rolling Mill * Enable access to 2™ tier hot rolled coil (Lower quality , lower price) * Ability to
Slide 21: Production Line - Cold Rolling Mill
Production Line - Cold Rolling Mill = Process : Pickled Hot Rolled Coil is fed into the Cold Rolling Mill (Reversing Mill) which applies roll force (600-900t) and tension to the total strip, reducing the thickness of the strip by up to 91 % Output: further processed at the Metallic Coating Lines, or
Slide 22: Production lines - Cold Rolling Mill
~ Production lines - Cold Rolling Mi = Improved Overall Equipment Effectiveness (OEE) from 50% to 68% with target of 75% = Current capacity 350,000 tpa and target is 400,000 tpa = A program to increase cold roll mill capacity to best practice for a reversing mill at minimal capital cost is being und
Slide 23: Cold rolling mill OEE Jan-Oct 2006
Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 OEE @ Transition Dow ntime @ Unscheduled Dow ntime @ Quality Loss @ Speed Loss WEEE, SLE.
Slide 24: Production Line - Metal Coating Line (No.1 and No.2)
~ Production Line - Metal Coating Line (No. 1 and No.2) Process : Cold reduced coils are hot dipped coated with ZINCALUME ® coating or galvanised (Zinc) coating to provide corrosion protection Output : Sold as ZINCALUME ® coil or Truzinc ® galvanised coil to building, manufacturing and industry or u
Slide 25: Production lines - Metal coating lines
- Production lines - Metal c = 2 Lines = MCL1 - capacity 175,000tpa = MCL2-capacity 200,000tpa, but in ramp-up mode = Produce a range of products, ZINCALUME®, Truzinc® (thickness 0.23-1.6 mm) = MCL2 = On Asia Day we advised of technical issues, including spangle variation, equipment reliability and
Slide 26: Production Line - No.2 Metal coating line production capacity
Production Line - No. 2 Metal coating line production capacity g i _ a : - — a 200 sl | =. ] L . = a i. oo Ce | oF 4 oo J L a — ee ’ 2 _ 4 - E . z Wes 1 50 le ec ie) yA ee | , 7... vi = ] foe gd 100 50 oe oo Fe i oe s os ie, 0 ion ea | lig) bole FY2006 FY2007 FY2008 FY2009 Prime Product B Non-Prime
Slide 27: MCL2 Process Capability (Non Prime First Time)
- MCL2Process Capability (Non Prime First Time) 500% 40.0% + 30.0% 4 20.0% + 10.0% 3 MCL2 NPFT % Improved yield with resolution of key technical Yield impacted as product Yield impacted by issues range extended to full start stop specified thickness range operations due to lack of demand N Nn nN An
Slide 28: Production Line - Paint Line
Output Process : 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 cured : Building, packaging and manufacturing markets COLORBOND®, Prima®, P-Zacs®, PPGI, CRP
Slide 29: Production lines - capacity utilization
- Production lines - capacity utlization ilities Cold Rolled Coi Metallic Coating oe [Number 1 Line Number 2 Line 225,000 5 400,000 475,000} 478,000] 147,277 475,000 200,000 NA 68,907 ; sn 75,000) 178,000) eth hed Steel Trusses Beam fabrication facility _ "15,500 412,000, AST Note: Number 2 Metal Co
Slide 30: Manufacturing Excellence Umbrella - Core focus
“Manufacturing Excellence Umbrella-Core focus Stakehoider Promises Manufacturing Excellence Delivery _ Performance Process _ Capability Operating Discipline Platform Manufacturing Excellence is a common framework used across BlueScope Steel to extract maximum value from our facilities WEEE, . 6) SLE
Slide 31: Key Improvement Activities
Key Improvement Activities a + Green zone + Decision making trai ining + Contractor managemen FRM. ny oe ntert “pte 7 | ee Dei REEODE St ict () ii il z Vitis Plus equipment vendor Sign Off + Spangle variation / micro spangle * Furnace brick work + Hot bridle roll replacement + Upleg cooler / treatme
Slide 32: Delivery Performance
Delivery Performance 05/06 Delivery performance deteriorated due to excessive demand and poor plant reliability 120% 100% 80% 60% + 40% 4 20% + Sy 0% 05/06 Delivery performance improving with plant reliability and improvement made to supply management processes 03/04 04/05 05/06 YTD 06/0 REEODE St i
Slide 33: Despatch volume of 22574T in May 2006
Despatch volume of 22574T in May 2006 A celebration of a record prime domestic despatch volume of 22,574t in May 2006. WAORECOES. SHEE,
Slide 34: Days of inventory
i NT inventory increase to support MCL2 start up + Inventory impacted by slow domestic market + Plans being action to reduce all stock Days of Inventory 01/02 02/03 03/04 04/05 05/06 YTDOG/07 pe WROTE ¢ srw, Page 34
Slide 35: Conversion cost maintained despite input cost increases
Conversion cost maintained despite input cost increases 2003 Raw materials cost impact driven by Hot Rolled Coil and Coating Metal market price movements 2004 8 8 4s ra 8 4 8 g 8 g 8 8 Fs s o oa 4 > u = 4 . = . “3 2 6 &€© 3 6 & $$ 2 8 BF 5 gw Raw Materials O Conversion pe AROS seu, Page 35
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Slide 37: Our People
Our People ip Page a7 ULES EPEC ITE
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Slide 39: Employees as of October 2006
Employees as of October 2006 1A Permanent Casual 1% 82% 17% High School Secondary0.30% primary School Master's Degree Vocational School 151% 7.62% Bachelor's Certificate §.92% ° Degree 2.71% 3931% High Vocational Dipt 's D. Diploma ploma's Degree Female ne P 0.30% ‘o Page 49
Slide 40: Employee age profile
30% 2556% 1998 1999 2000 2001 2002 2003 2004 2005 2006 age £0
Slide 41: Recruitment - Graduate Program
. | Recruitment - Graduate Program 2 years program - 0-1 yrs. 5 people - >1yrs. 6 people - Recruiting 3 people 2. Remuneration - To attract & retain high calibre employees, the new salary structure was introduced mid year 06, salary adjustment on 1 Jul 06. - Other benefit will be reviewed beginning
Slide 42: Our people - Our community
~ Our people - Our community As one aspect of our Bond focuses on Community, Human Resources Department coordinates organising lunch for HIV victims at Camillian Social Center Rayong on 3 March 2006. £ SLUR SPE, age #2 CH SAAT SEACOPE
Slide 43: Our people - Our community - Blood donation
Our people - Our community — Blood donation fo Cl A BLAH LVM ET
Slide 44: Our people - Songkarn Festival in April 2006
Our people - Songkarn Festival in April 2006 SL RAOSOCA Page 44 EAE
Slide 45: We have world class assets
« We have world class assets * We have ramped up throughput * We are on track to close out all major technical issues * We have detailed plans for further improvement and optimization and * We have a strong management teams and great people with demonstrated ability to deliver BEESCOPE SLL HOGCCAG F
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