Bluescope Steel Limited · ASX:BSL
Bluescope Steel — H1 FY2018 Earnings Presentation
86 slides from Bluescope Steel's earnings presentation, Feb 26, 2018
Slide 1: 1H FY2018 Financial Results Presentation
For personal use only 1H FY2018 Financial Results Presentation Mark Vassella, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 26 February 2018 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058
Slide 2: Important Notice
Important Notice THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR For personal use only 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: 1H FY2018 Headlines
For personal use only 1H FY2018 HEADLINES
Slide 4: Safety: improving global performance so far in FY2018
Safety: improving global performance so far in FY2018 For personal use only Lost time injury frequency rate Medically treated injury frequency rate 16.0 60.0 14.0 52.2 Medically treated injuries per million man-hours worked Lost time injuries per million man-hours worked 47.1 8.0 29.1 22.4 21.9 4.8
Slide 5: A strong finish to the half year; delivered $517M underlying EBIT
A strong finish to the half year; delivered $517M underlying EBIT For personal use only Similar to 2H FY2017 Underlying EBIT $516.8M Includes $32.1M one-off benefit1 from settlement of historical coal supply dispute Underlying EBIT return on invested 16.8% Third successive half year above 15% capita
Slide 6: Solid balance sheet position and ongoing capital management
Solid balance sheet position and ongoing capital management For personal use only Lower due to seasonality of Free cash flow $146.2M working capital (Operating cash flow less capex) $609.3M for CY2017 $148M buy-back Announced 6.0cps interim Capital dividend during 1H FY18; framework in management Fe
Slide 7: Underlying EBIT by segment – BlueScope benefits from a diversified portfolio
Underlying EBIT by segment – BlueScope benefits from a diversified portfolio For personal use only Australian Steel Products North Star $261.7M 8% $145.2M 31% • Better market demand and volumes • Spreads moderated from historical highs • Benefit of one-off coal supply dispute settlement $32M • Headw
Slide 8: Management and Strategy Update
For personal use only MANAGEMENT AND STRATEGY UPDATE
Slide 9: New Executive Leadership Team
New Executive Leadership Team For personal use only Managing Director & Chief Executive Officer (as of 1 Jan 2018) • 30 years in steel industry • Most recently Chief Executive, BlueScope Aust & NZ • Led Australian and New Zealand restructures • Ran all BlueScope’s buildings businesses in North Ameri
Slide 10: Our Bond, our strategy and our financial principles
What we aim to achieve, and how we do it, are guided by Our Bond, our strategy and our financial principles For personal use only Our Bond Financial Strategy principles 10
Slide 11: Our Bond
11 For personal use only OUR BOND
Slide 12: Enhancing our sustainability reporting
OUR BOND Enhancing our sustainability reporting For personal use only FY2016 Report FY2017 Report FY2018 Report Initial step towards sustainability Substantive update of our reporting, combining content of sustainability reporting using Further update using BlueScope’s annual Community Safety stakeh
Slide 13: Strong performance on sustainability
OUR BOND Strong performance on sustainability For personal use only Safety, health and • Relentless pursuit of Zero Harm and further improvement in performance against LTI and MTI wellness measures • World leading safety performance – kept LTIFR rate below 1.0 for over 13 years Climate change and •
Slide 14: The strategy is focussed on shareholder returns …
STRATEGY The strategy is focussed on shareholder returns … For personal use only Grow Deliver Ensure ongoing premium branded steel businesses competitive commodity steel supply financial strength with strong channels to market in our local markets Coated & Painted BlueScope North Star Australia & NZ
Slide 15: … and is delivering financially
… and is delivering financially STRATEGY Underlying EBIT (group) Underlying return on invested capital For personal use only 1,044 17.0% $M 6.5% 329 (215) -4.2% FY2012 FY2015 CY2017 FY2012 FY2015 CY2017 Underlying EPS Free cash flow (operating cash flow less capex) 111 609 cents per share $M 29 154
Slide 16: A lot has been achieved and we have plenty more to do to drive growth
A lot has been achieved and we have plenty more STRATEGY to do to drive growth For personal use only Grow Deliver Ensure ongoing premium branded steel businesses competitive commodity steel supply financial strength with strong channels to market in our local markets Coated & Painted BlueScope North
Slide 17: Clearly stated financial principles to support decision making and investment
Clearly stated financial principles to support decision making and investment FINANCIAL PRINCIPLES For personal use only Return hurdles • Every BlueScope business needs to deliver ROIC • Management and employees are incentivised within each business to deliver ROIC targets Investment timing • BlueSc
Slide 18: Capital management framework
Capital management framework FINANCIAL PRINCIPLES For personal use only Framework • Board’s present intention is to pay consistent dividends, given limited franking availability, in conjunction with ongoing on-market buy-backs1, funded on the following basis: – To retain strong credit metrics – To e
Slide 19: Segment Financial Results
For personal use only SEGMENT FINANCIAL RESULTS
Slide 20: ASP underlying EBIT up over 2H FY2017 through better volumes/mix, spread and coke margins
ASP underlying EBIT up over 2H FY2017 through better volumes/mix, spread and coke margins For personal use only Underlying EBIT ($M) Comments on 1H FY2018 (compared to 2H FY2017) $32.1M one-off benefit1 from • Volume / mix improved settlement of historical coal – Domestic volume increased on strong
Slide 21: Continued focus on customer engagement is underpinning Australian demand
Continued focus on customer engagement is underpinning Australian demand For personal use only Total Australian external domestic despatch volumes (Kt) 1H FY15 2H FY15 1H FY16 2H FY16 1H FY17 2H F17 1H FY18 • A significant proportion of product goes to alterations and additions. Sub-segment performi
Slide 22: ASP's profitability improved considerably through productivity initiatives
ASP’s profitability improved considerably through productivity initiatives, even at “bottom of the cycle” spreads For personal use only ASP EBITDA per tonne vs spread Underlying 400 Bottom of cycle EBITDA per spreads1 tonne 350 FY05 A$/t 300 250 1H18 FY17 FY04 FY08 200 FY16 FY07 FY06 150 FY03 FY15 1
Slide 23: North Star underlying EBIT down 31% on 1H FY2017
North Star underlying EBIT down 31% on 1H FY2017 with spreads moderated from historical highs Underlying EBIT ($M)1 Comments on 1H FY2018 For personal use only 211.3 • Continued to operate at 100% capacity utilisation 195.4 • Spread in the US$280-290/t range – moderated from the 145.2 historical hig
Slide 24: North Star: further low-capital incremental expansion
North Star: further low-capital incremental expansion For personal use only North Star despatches since commencement (100% basis) +86% Further 2,000 incremental capacity expansion in progress 1,500 Metric kt GFC 1,000 500 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16 Delivered majority of goal o
Slide 25: North Star – earnings relatively consistent through the cycle
North Star – earnings relatively consistent through the cycle, noting annual variability. Averaged 90% conversion of EBITDA to cash over last six years For personal use only US$M EBITDA and spread1 350 U.S. mini-mill spread Move to full ownership of 340 250 North Star during 324 EBITDA (100% basis)
Slide 26: Building Products segment underlying EBIT down 16% on 1H FY2017
Building Products segment underlying EBIT down 16% on 1H FY2017 For personal use only Underlying EBIT ($M) Comments on 1H FY2018 111.3 • Benefit of diversified geographical exposure – with North America, India and Indonesia stronger; other businesses 90.4 93.3 softer 48.0 • North America: better vol
Slide 27: Coated & painted projects in process and under evaluation in Asia
Coated & painted projects in process and under evaluation in Asia; to be funded from free cash flow • Continued investment in products, brands and channels to grow sales to the For personal use only Retail/SME products retail/SME markets in each country • Progressing towards our business case sales
Slide 28: BlueScope Buildings underlying EBIT down 32% on 1H FY2017
BlueScope Buildings underlying EBIT down 32% on 1H FY2017; but momentum building in North America and China Buildings profitable Underlying EBIT ($M) Comments on 1H FY2018 For personal use only 49.5 • Engineered Buildings North America: – Early softness in premium manufacturing and industrial 33.9 s
Slide 29: New Zealand & Pacific Steel underlying EBIT tripled on 1H FY2017
New Zealand & Pacific Steel underlying EBIT tripled 1H FY2017 on productivity initiatives and improved steel prices Underlying EBIT1 ($M) Comments on 1H FY2018 For personal use only 47.5 • Domestic demand continues to be very strong 41.0 – Continued strong building activity – Robust infrastructure d
Slide 30: Group Financials
For personal use only GROUP FINANCIALS
Slide 31: Underlying EBIT variances
Underlying EBIT variances Raw material costs: Coal (net of coke margin +$19M) (50) Net spread decrease $36.8M Settlement of historical coal supply dispute1 32 For personal use only Iron ore (13) Scrap & alloys (incl North Star scrap) (185) Coating metals (49) 298.3 External steel feed (116) (378.8)
Slide 32: Updated view on relationships with benchmark pricing for ASP
Updated view on relationships with benchmark pricing for ASP For personal use only • Changed trading conditions and more frequent large moves in commodity prices has influenced the impact of benchmark prices on ASP • Degree of correlation between realised domestic selling prices and regional benchma
Slide 33: Underlying earnings and net finance cost
Underlying earnings and net finance cost For personal use only $M 1H FY2017 2H FY2017 1H FY2018 Underlying EBIT 577.7 527.3 516.8 Underlying finance costs (45.9) (41.0) (41.0) Interest revenue 3.2 3.0 3.8 Profit from ordinary activities before tax 535.0 489.4 479.6 26.3% effective Underlying income
Slide 34: Continued strong cash flow
Continued strong cash flow $M 1H FY17 2H FY17 1H FY18 Reported EBITDA 737.0 688.0 697.2 Adjust for other cash profit items 35.6 33.8 (8.6) For personal use only Cash from operations 772.6 721.8 688.6 Working capital build, mainly driven by inventory and payables – includes unwind of $100M of favoura
Slide 35: Net working capital
Net working capital 30 June 2017 benefitted For personal use only by $100M from timing of 1,419.6 year-end cash flows 1,361.5 1,269.3 (4.5) 1,212.2 232.3 1,156.1 1,035.5 (149.9) 127.5 $M Mainly prices, and Seasonality and partly volume. timing of cash flows Mostly in ASP Jun-2015 Dec-2015 Jun-2016 D
Slide 36: Investing in our businesses – increasing capital and investment expenditures
Investing in our businesses – increasing capital and investment expenditures on strategic growth projects For personal use only $116M in 1H, $136M in 1H, Largest growth projects: $251M in 2H $247M in 2H • Painting and coating capacity in Thailand • Potential painting capacity in India • Investment i
Slide 37: Net debt of $262M; liquidity of $2.0bn
Net debt of $262M; liquidity of $2.0bn For personal use only Net debt ($M) Liquidity (undrawn facilities and cash, $M) 1 262 15 3 2,025.5 232 (10) 1,932.4 (92) 1,801.4 170 212 (358) 171 Jun-17 Cash Share Capex Other incl FX Dec-17 Est net Dec-17 Dec-16 Jun-17 Dec-17 inflow Buy & invest asset debt/ca
Slide 38: Strong credit profile and improving credit metrics
Strong credit profile and improving credit metrics – refinancings will lower finance costs For personal use only Leverage – net debt to LTM underlying EBITDA1 Corporate ratings – S&P and Moody’s Step-up and BBB- Investment grade Baa3 rapid pay-down of North Star 50% acquisition BB+ Ba1 S&P BB Ba2 1.
Slide 39: Outlook & Summary
For personal use only OUTLOOK & SUMMARY
Slide 40: 2H FY2018 outlook – segment comments
2H FY2018 outlook – segment comments1 Australian Steel Products North Star For personal use only • Overall, expect a stronger result • Average spread through 2H FY2018 expected to be • Spreads improving with stronger benchmark HRC prices. ~US$40/t higher Price rise correlation moderated by dumping a
Slide 41: Outlook
Outlook For personal use only • The Company currently expects, after deducting the one-off benefit of the $32.1M coal settlement from 1H FY2018 underlying EBIT, second half underlying EBIT to be around 25% higher • Based on assumptions of average1: – East Asian HRC price of ~US$600/t – 62% Fe iron o
Slide 42: Questions and answers
Questions and answers For personal use only 42
Slide 43: BlueScope – A very different kind of steel company
For personal use only BLUESCOPE – A VERY DIFFERENT KIND OF STEEL COMPANY
Slide 44: A very different kind of steel company
A very different kind of steel company For personal use only 1 A portfolio of diversified, profitable businesses 2 Brands 3 Pivot to value added 4 Own our channels to market 5 Geographic diversity 6 Rebased earnings 7 High return on invested capital 8 Strong cash flow 9 Strong balance sheet 44
Slide 45: A portfolio of diversified, profitable businesses
1 A portfolio of diversified, profitable businesses High value branded steel building materials businesses – technology, quality and scale leader For personal use only Highly competitive commodity steelmaking businesses Building Products Australian Steel New Zealand and North Star BlueScope Blue
Slide 46: A portfolio of diversified, profitable businesses – competitive cost positions
A portfolio of diversified, profitable businesses 1 In commodity steelmaking – but with highly competitive cost positions For personal use only Aust Steel Products EBITDA per tonne vs spread EBIT margin – North Star and North American peers 400 Bottom of cycle Underlying EBITDA per tonne A$/t spread
Slide 47: A portfolio of diversified, profitable businesses – earnings diversity
A portfolio of diversified, profitable businesses 1 Leading to earnings diversity For personal use only Underlying EBITDA by segment ($M) BlueScope 1,422 Buildings 89 BP segment 243 Premium branded products ASP 656 Cost- competitive North Star 396 commodity steelmaking NZPac Coated & painted and 133
Slide 48: Brands – our brand portfolio
Brands – our brand portfolio contains many well-known 2 and respected names For personal use only Australia New Zealand Buildings Asia Note: SuperDyma® and VIEWKOTE™ are brands of our NS BlueScope Coated Products joint venture partner, Nippon Steel & Sumitomo Metal Corporation 48
Slide 49: Pivot in our sales mix – increasing contribution from value-added products
Pivot in our sales mix – increasing contribution from 3 value-added products BlueScope despatch volume mix For personal use only 100% BlueScope Buildings 80% Building products Higher value added Australia cold rolled 60% and coated & painted 40% High performing, North America steelmaking cost compet
Slide 50: We own channels to end customers in our main markets
4 We own channels to end customers in our main markets For personal use only We own channels to end customers in our main markets We know our customers and build brand awareness through this Australia Buildings Asia North America 50
Slide 51: Geographic diversity
5 Geographic diversity For personal use only Underlying EBITDA by region ($M) New Zealand $133M Asia 9% $188M 12% Australia 43% $647M 36% North America $549M CY2017 Total: $1,422M Note: total includes corporate costs & eliminations of $95.3M, excluded from pie chart 51
Slide 52: Earnings rebased following two year transformation
6 Earnings rebased following two year transformation Improvement in underlying EBIT For personal use only 1,105 • Rebased earnings 20 (23) 103 to a higher level Around 25% higher than $484.7M Driven by productivity and North America cost improvements, with productivity initiatives • Macro volatility
Slide 53: High return on invested capital
7 High return on invested capital For personal use only Group ROIC of 17.0% in CY2017 ROIC is a key discipline for (i) performance management, (ii) project assessment, and (iii) executive incentives BlueScope group and segmental return on invested capital (ROIC) in CY2017 30.2% 20.6% 19.3% 17.0%
Slide 54: Strong cash flow following transformation
8 Strong cash flow following transformation For personal use only $550-650M of free cash after capital expenditure and sale of receivables in CY2016 and CY2017 Returning funds to shareholders through dividends and on-market buy-backs (over $340M in CY2017) Free cash flow after capex / investing
Slide 55: Strong balance sheet
9 Strong balance sheet For personal use only Clearly stated financial principles to support decision making and investment Target zero net debt or positive cash; $262M net debt at last balance date Key management long term incentives linked to balance sheet health – do not vest if leverage rat
Slide 56: Additional Information – Group-level Material
For personal use only ADDITIONAL INFORMATION – GROUP-LEVEL MATERIAL
Slide 57: Financial headlines
Financial headlines SIX MONTHS ENDED For personal use only $M (unless marked) 31 DEC 2016 31 DEC 2017 1H FY18 vs 1H FY17 Total revenue 5,195.2 5,490.5 External despatches of steel products (kt) 3,696.3 3,715.0 EBITDA − Underlying 1 767.1 703.5 EBIT − Reported 547.6 510.5 − Underlying 1 577.7 516
Slide 58: Reconciliation between reported NPAT and underlying NPAT
Reconciliation between reported NPAT and underlying NPAT1 For personal use only 1H FY2018 NPAT $M Reported net profit after tax 441.2 Underlying adjustments Asset impairments 11.1 Restructuring & redundancy costs 1.8 Asset sales (2.7) Tax asset impairment / (write-back) – mainly utilisation of unboo
Slide 59: Summary of financial items by segment
Summary of financial items by segment For personal use only Sales revenue Total steel despatches $M 1H17 2H17 FY17 1H18 '000 tonnes 1H17 2H17 FY17 1H18 Australian Steel Products 2,365.0 2,553.7 4,918.7 2,565.7 Australian Steel Products 1,466.4 1,624.3 3,090.7 1,515.3 North Star BlueScope Steel 793.9
Slide 60: Balance sheet
Balance sheet $M 31 Dec 2016 30 Jun 2017 31 Dec 2017 For personal use only Assets Cash 561.9 753.0 815.9 Receivables * 1,059.9 1,363.9 1,214.0 Inventory * 1,814.0 1,733.2 1,860.7 Property, Plant & Equipment 3,798.6 3,721.7 3,706.7 Intangible Assets 1,794.4 1,689.7 1,646.2 Other Assets 361.1 313.9 34
Slide 61: Inventory movement
Inventory movement For personal use only RM $409.6M RM $494.7M WIP 590.8 WIP 542.0 FG 563.4 FG 643.6 Other 169.4 Other 180.4 $127.5M increase comprised of segmental movements: 0.9 1,860.7 52.8 (8.8) 82.6 ASP – driven by higher 104.1 1,733.2 volumes partly offset by lower raw material costs $M North
Slide 62: Debt facilities maturity profile at December 2017
Debt facilities maturity profile at 31 December 2017 For personal use only Receivables securitisation program: BSL Syndicated Bank Facility U.S. unsecured notes 641 In addition to debt facilities, BSL has NS BlueScope JV facilities (100%) $440M of off-balance sheet Inventory Finance securitisation
Slide 63: Committed debt facilities as at December 2017
Committed debt facilities as at 31 December 2017 Committed Drawn For personal use only Maturity Local currency A$M A$M Syndicated Bank Facility - Tranche 1 Dec 2018 A$310M A$310M A$0M - Tranche 2 Nov 2019 A$300M A$300M A$0M - Tranche 3 Nov 2020 A$240M A$240M A$0M US unsecured notes May 2021 US$500M
Slide 64: Indicative half year EBIT sensitivities
Indicative half year EBIT sensitivities1 Sensitivities may vary subject to volatility in prices, currencies and market dynamics – refer to pages 32 and 69 Australian Steel Products segment New Zealand Steel & Pacific Steel segment For personal use only +/- US$10/t move in average benchmark hot rolle
Slide 65: Additional Information – Segment Material
For personal use only ADDITIONAL INFORMATION – SEGMENT MATERIAL
Slide 66: Australian Steel Products: Financial and despatch summaries
Australian Steel Products Financial and despatch summaries For personal use only Key segment financial items Despatches breakdown $M unless marked 1H 17 2H 17 FY 17 1H 18 '000 Tonnes 1H 17 2H 17 FY 17 1H 18 Revenue 2,365.0 2,553.7 4,918.7 2,565.7 Hot rolled coil 247.5 258.8 506.4 281.6 Underlying EB
Slide 67: Australian Steel Products: Underlying EBIT variance
Australian Steel Products Underlying EBIT variance Net spread increase $25.9M For personal use only 87.5 (84.1) 261.7 242.5 22.5 (0.1) (39.5) 32.9 Raw material costs: Conversion & other costs: Coal (net of coke margin of +$19M) (45) Cost improvement initiatives 19 Settlement of historical coal suppl
Slide 68: Australian Steel Products: Spot spreads have recovered
Australian Steel Products Spot spreads have recovered on stronger steel prices after a dip driven by coal price spike Indicative steelmaker HRC lagged spread For personal use only Spread: SBB East Asia HRC price less cost of 1.5t iron ore fines and 0.71t hard coking coal $800 $700 $600 $500 $400 A$
Slide 69: Australian Steel Products: Relationships with benchmark pricing
Australian Steel Products Updated view on relationships with benchmark pricing Steel prices • Selling prices across majority of domestic product correlated with SBB East Asia HRC price; For personal use only lagged generally three to five months; degree of correlation between realised and benchmark
Slide 70: Australian Steel Products: Despatch mix
Australian Steel Products Despatch mix (Mt) For personal use only 1.62 1.52 1.47 1H FY2018 Product Mix 0.48 0.34 Export 0.36 Export Domestic - 0.08 0.07 externally sourced 0.07 HRC Metal Coated Plate Painted CRC Other inc ext sourced Domestic - BSL 1.08 1.10 1.03 manufactured Domestic 1H FY2017 2H F
Slide 71: Australian Steel Products: Revenue and underlying costs 1H FY2018
Australian Steel Products Revenue and underlying costs 1H FY2018 For personal use only Revenue Underlying costs (to EBIT line) A$2,566m Non-steel business costs A$2,304m Conversion & overhead Non-steel business relate to: • Export coke Non-steel business • Export coke sales components (in order • Co
Slide 72: Australian Steel Products: Momentum in residential construction market
Australian Steel Products Momentum holding in the Australian residential construction market Long-Term Dwelling Approvals: rolling 12 months Dwelling Commencements: by halves Detached holding within long-term range Momentum holding ‘000 ‘000 For personal use only 160 120 110 140 100 120 90 Detached
Slide 73: Australian Steel Products: Non-residential construction market rebounding
Australian Steel Products Non-residential construction market rebounding Non-Residential Building Approvals: rolling 12 months Non-Residential Work Done: by halves Rebound underway, especially in Commercial & Industrial Work in pipeline starting to translate into activity A$bn A$bn 30 25 For persona
Slide 74: Australian Steel Products: Continued focus on customer engagement
Australian Steel Products Continued focus on customer engagement is underpinning Australian demand For personal use only Total Australian external domestic despatch volumes (Kt) – see page 21 for 1H FY2018 data FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 2,800 Total construction %
Slide 75: North Star: Financial & despatches summary
North Star Financial & despatches summary Key segment financial items – A$M For personal use only $M unless marked 1H 17 2H 17 FY 17 1H 18 Revenue 793.9 906.9 1,700.9 860.6 Underlying EBITDA 238.6 223.1 461.7 172.5 Underlying EBIT 211.3 195.4 406.6 145.2 Reported EBIT 237.9 195.4 433.3 145.2 Capital
Slide 76: North Star: Underlying EBIT variance
North Star Underlying EBIT variance For personal use only Spread decrease $67.9M 78.9 211.3 (146.8) 145.2 2.1 5.3 (5.6) 1H FY2017 Prices Raw material costs Conversion & Volume & mix FX translation 1H FY2018 other costs & other Spread decrease $32.6M 195.4 15.4 (48.0) (3.4) (8.7) 145.2 (5.5) 2H FY201
Slide 77: Building Products ASEAN, North America & India: Financial summary
Building Products ASEAN, North America & India Financial summary For personal use only Key segment financial items Despatches by business $M unless marked 1H 17 2H 17 FY 17 1H 18 '000 Tonnes 1H 17 2H 17 FY 17 1H 18 Revenue 951.0 1019.5 1970.5 1028.6 Thailand 188.8 196.1 384.9 180.8 Underlying EBITDA
Slide 78: Building Products ASEAN, North America & India: Underlying EBIT variance
Building Products ASEAN, North America & India Underlying EBIT variance For personal use only Net spread decrease $20.8M 88.8 (115.2) 111.3 5.6 93.3 (10.2) (0.3) 13.3 1 1H FY2017 Export prices Domestic prices Raw material Conversion Volume & mix FX translation 1H FY2018 costs & other costs & other N
Slide 79: BlueScope Buildings: Financial and despatches summary
BlueScope Buildings Financial and despatches summary For personal use only Key segment financial items Despatches by business $M unless marked 1H 17 2H 17 FY 17 1H 18 '000 Tonnes 1H 17 2H 17 FY 17 1H 18 Revenue 896.1 860.7 1,756.8 830.8 Engineered Buildings North America 129.2 117.7 246.9 116.2 Unde
Slide 80: BlueScope Buildings: Underlying EBIT variance
BlueScope Buildings Underlying EBIT variance For personal use only Net margin increase $5.8M (53.9) 77.6 (17.9) 49.5 (21.1) 33.9 (0.3) 1H FY2017 Prices Raw material costs Conversion & Volume & mix FX translation 1H FY2018 other costs & other Net margin increase $18.0M 2.8 (9.5) 33.9 0.8 0.6 24.7 14.
Slide 81: New Zealand & Pacific Steel: Financial summary
New Zealand & Pacific Steel Financial summary For personal use only Key segment financial items Steel despatches $M 1H 17 2H 17 FY 17 1H 18 '000 Tonnes 1H 17 2H 17 FY 17 1H 18 Revenue 344.8 402.7 747.5 386.8 Domestic despatches Underlying EBITDA 33.5 69.8 103.2 63.2 - NZ Steel flat products 135.3 13
Slide 82: New Zealand & Pacific Steel: Underlying EBIT variance
New Zealand & Pacific Steel Underlying EBIT variance (4.8) For personal use only Net spread increase $6.4M (5.5) 41.0 31.3 17.6 (17.6) 13.6 6.4 1H FY2017 Export prices Domestic prices Raw material Conversion Volume & mix FX translation 1 1H FY2018 costs & other costs & other Net spread decrease $4.8
Slide 83: New Zealand & Pacific Steel: Despatch mix
New Zealand & Pacific Steel Despatch mix For personal use only 328.5 15.9 307.5 22.5 276.4 Export long 6.2 80.9 55.9 1H FY2018 Domestic Product Mix Export flat 48.1 Domestic long 86.8 96.3 97.5 HRC Painted Plate Other flat products 135.4 CRC Pacific Steel long products Domestic flat 135.3 131.6 Meta
Slide 84: New Zealand & Pacific Steel: East Asian rebar price influences pricing
New Zealand & Pacific Steel The East Asian rebar price influences domestic and export long product pricing For personal use only SBB East Asian rebar price, unlagged (US$/t) $800 $700 $600 $500 $400 $300 $200 $100 $0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Source: Steel
Slide 85: New Zealand & Pacific Steel: Construction activity remains robust
New Zealand & Pacific Steel Construction activity remains robust Residential Building Consents: rolling 12 months Residential Work Put in Place: by quarters Plateaued at high level Robust activity levels ‘000 NZ$bn 35 4,000 For personal use only 30 3,500 3,000 25 2,500 20 2,000 1,500 15 1,000 10 500
Slide 86: 1H FY2018 Financial Results Presentation
For personal use only 1H FY2018 Financial Results Presentation Mark Vassella, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 26 February 2018 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058