Bisalloy Steel Group Ltd · ASX:BIS
Bisalloy Steel — FY2009 Earnings Presentation
17 slides from Bisalloy Steel's earnings presentation, Sep 3, 2009
Slide 1: Business Presentation
For personal use only Business Presentation September 2009
Slide 2: Important Notice
Important Notice For personal use only This presentation is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase shares in Bisalloy Steel Group Limited (“the Company”). This presentation does not form the basis of any contract or commitment. You should not
Slide 3: Bisalloy Overview
Bisalloy Overview For personal use only Bisalloy Steel Group Bisalloy Steels Bisalloy Asia Bisalloy Steels Australia’s only manufacturer of high strength structural and wear resistant Q&T steel plate (Bisplate®) for Australian and international markets Purpose built facility at Unanderra, NSW Bi
Slide 4: Operations Overview
Operations Overview For personal use only Bisalloy Steels Australia is the primary processing operation – Q&T plate produced south of Sydney at the Unanderra facility Raw material / steel plate (“greenfeed”) sourced from several steel mills located in Australia and China Greenfeed heated and r
Slide 5: Performance Drivers
Performance Drivers For personal use only Performance drivers vary across the business. The Australian processing operation is volume and margin driven: – Largest component of cost is raw materials (approximately 80% of total cost at historical volumes) – Simple variable cost structure (freight, e
Slide 6: Product Mix
Product Mix For personal use only Products diversified across industries and applications. KEY PRODUCTS PRODUCT BY TONNES* Armour Wear plate – Bisplate 400, 450, 500 for mining Plate 10% applications such as dump trucks and dragline buckets Structural plate – Bisplate 60, 70, 80, 80PV for Wear P
Slide 7: Marketing Mix
Marketing Mix For personal use only Revenues diversified across industries and customers. INDUSTRY SECTORS* CUSTOMERS* A griculture General 3% Caterpillar Engineering 5% 13% M ilitary End Users 10% 6% Jo int Ventures 11% Armour Distributo rs Transpo rt Manuf act urers 50% 12% 8% M ining Other 70% B
Slide 8: Safety Performance
Safety Performance For personal use only STAR Safety Program has delivered significant safety outcomes Only two days lost time through injury in the last 21 months Workers Compensation Premium has fallen 44% in dollar terms in two years. Premium % is now 3.0% versus 7.3% two years ago Page 8
Slide 9: FY09 Results – overview
FY09 Results – overview For personal use only FINANCIAL RESULTS (Y/E 30 JUNE 2009) COMMENTARY Group Statutory Reporting Basis FY09 ($m) FY08 ($m) EBIT of $32.4m for continuing operations, in the mid range of market guidance. Bisalloy Operations contributed EBIT of $18.5m comprising: Continuing Ope
Slide 10: FY09 Results – half on half
FY09 Results – half on half For personal use only Results Summary - Bisalloy Steel Group Limited results for the year ended 30 June 2009 Normalised Reporting Basis FY09 FY09 FY09 FY08 FY08 FY08 $m H1 H2 H1 H2 Business Overview Continuing Operations Only Revenues July 2009 78.2 30.8 109.0 60.1 65.7 1
Slide 11: Growth Strategy
Growth Strategy For personal use only Domestic volume, new geographic markets and production capabilities. Despite current market setback, resources demand growth will underpin both maintenance and new capital equipment requirements Increase exposure to structural applications through AS 4100 -
Slide 12: Outlook
Outlook For personal use only PEAK DOWNTURN RECOVER CONSOLIDATE GROW H1 FY09 H2 FY09 H1 FY10 ? ? Although the Company operates within the steel sector its marketing mix indicates a strong leverage to the resource sector Available market analysis indicates the steel sector implemented aggressive
Slide 13: Summary
Summary For personal use only Australia’s only manufacturer of quenched and tempered (“Q&T”) steel plate Leading ‘Bisplate’ brand the generic name for Q&T steel in Australia and many parts of Asia Extensive distribution network across Australia, New Zealand, Indonesia and Thailand Customer b
Slide 14: Delivering against expectation…
For personal use only Delivering against expectation… Page 14
Slide 15: Historical Financial Information – Australia
Historical Financial Information – Australia For personal use only PRODUCT SALES (TONNES) SALES REVENUES (A$m)* 128.3 49,588 105.8 40,703 93.7 37,397 85.2 30,957 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 GROSS MARGIN (A$m) EBIT (A$m) 47.8 24.5 33.3 35.9 32.5 18.5 15.9 14.2 FY06 FY07 FY08 FY09 FY06 FY0
Slide 16: Historical Financial Information – Thailand
Historical Financial Information – Thailand For personal use only SALES IN TONNES SALES REVENUES (A$m) 4,149 12.2 2,778 8.6 2,328 2,018 6.9 7.1 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 GROSS MARGIN (A$m) EBIT (A$m) 3.3 2.7 2.7 2.2 2.1 1.7 1.4 1.2 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 Page 16
Slide 17: Historical Financial Information – Indonesia
Historical Financial Information – Indonesia For personal use only SALES IN TONNES SALES REVENUES (A$m) 4,382 12.9 11.8 3,152 3,335 8.6 2,189 6.2 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 GROSS MARGIN (A$m) EBIT (A$m) 2.9 1.5 2.8 1.4 2.0 2.0 ` 0.7 0.7 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 Page 17