Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Day (November 2019)
82 slides from Bluescope Steel's investor day presentation, Nov 27, 2019
Slide 1: BlueScope Investor Day
For personal use only BLUESCOPE INVESTOR DAY Mark Vassella Managing Director & Chief Executive Officer Tania Archibald Chief Financial Officer 27 November 2019 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058
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: Agenda
AGENDA For personal use only Time Topic 10:45am BlueScope strategy update 11:30am Australian Steel Products deep-dive 1:00pm Lunch break 1:40pm North Star 2:00pm Building Products Asia and North America 2:40pm Buildings North America 3:00pm Afternoon tea break 3:20pm New Zealand and Pacific Steel 3:
Slide 4: BlueScope Strategy Update
For personal use only BLUESCOPE STRATEGY UPDATE
Slide 5: BlueScope's Investment Proposition
BLUESCOPE'S INVESTMENT PROPOSITION 5 For personal use only Disciplined and advantaged steel building products company focussed on growing long term shareholder value ASSETS & CAPABILITY CAPITAL DISCIPLINE RETURNS FOCUS • Integrated and resilient Australian business • Strong balance sheet with target
Slide 6: A Significant Transformation
A SIGNIFICANT TRANSFORMATION 6 For personal use only A step change in earnings quality, cash flows and balance sheet strength; well prepared for future growth ROBUST BALANCE SHEET – NET CASH INCREASED RETURNS TO SHAREHOLDERS IMPROVED GEOGRAPHIC EARNINGS MIX Net cash / (debt) ($M) Dividends paid and
Slide 7: Industry Update
INDUSTRY UPDATE 7 For personal use only BlueScope is well positioned in robust, developed economies, and in high growth regions across Asia CHINA • Continued focus on overcapacity and environmental performance • Shift to EAF production, rapidly growing scrap pool • Better supply / demand balance – s
Slide 8: What and Where
WHAT AND WHERE 8 For personal use only BlueScope operates a range of quality assets across large and growing markets STEELMAKING CHINA (FLAT PRODUCTS) LONG PRODUCTS INDIA (REBAR, WIRE) METAL COATING SOUTH EAST ASIA AND PAINTING STEEL BUILDING MATERIALS AND UNITED STATES COMPONENTS STEEL BUILDINGS AU
Slide 9: Our Bond, Strategy, Financial Framework & Approach to Sustainability
OUR BOND, STRATEGY, FINANCIAL FRAMEWORK & APPROACH TO 9 SUSTAINABILITY GUIDE WHAT WE AIM TO ACHIEVE AND HOW WE DO IT For personal use only OUR CUSTOMERS ARE OUR PARTNERS OUR PEOPLE ARE OUR STRENGTH OUR SHAREHOLDERS ARE OUR FOUNDATIONS OUR COMMUNITIES ARE OUR HOMES
Slide 10: Evolving Our Strategy
EVOLVING OUR STRATEGY 10 For personal use only • Digital technology: delivering the next wave of customer, growth and productivity improvements through technology TRANSFORM • Carbon and climate change: playing our part in the challenge; producing highly recyclable products, and actively lowering emi
Slide 11: Strategy Framework: Transform, Optimise and Grow, Deliver
• Digital Technology TRANSFORM • Carbon and Climate Change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 12: Digitally Transforming Our Business
DIGITALLY TRANSFORMING OUR BUSINESS 12 For personal use only Delivering the next wave of customer, growth and productivity improvements through technology A clear framework for digital transformation A range of technology solutions available to deliver value Provide • Providing the overall strategy
Slide 13: Carbon and Climate Change – The Challenge
CARBON AND CLIMATE CHANGE – THE CHALLENGE 13 For personal use only Steel demand is growing; demand for virgin steel will increase; low-carbon solutions remain long way off OUR ACTION WE THE CHALLENGE COMMITMENT ARE TAKING • Continued global growth in steel demand is expected • Recycling plays a big
Slide 14: Carbon and Climate Change – Our Commitment
CARBON AND CLIMATE CHANGE – OUR COMMITMENT 14 For personal use only We will work diligently to seek to improve the efficiency of our operations and reduce emissions THE ACTION WE OUR COMMITMENT CHALLENGE ARE TAKING • BlueScope strongly advocates a fair and equitable approach to addressing climate ch
Slide 15: Carbon and Climate Change – Action
CARBON AND CLIMATE CHANGE – ACTION 15 For personal use only We will work diligently to seek to improve the efficiency of our operations and reduce emissions THE OUR ACTION WE ARE TAKING CHALLENGE COMMITMENT BlueScope will play a proactive role in reducing the carbon emissions from the manufacture an
Slide 16: Carbon and Climate Change – Action
CARBON AND CLIMATE CHANGE – ACTION 16 only Focussing on how to meaningfully reduce our carbon intensity in time frames aligned with key investment decisions Achieve the 1% yoy • Refine our comprehensive pipeline of projects and abatement cost curves carbon intensity • Execute program of work at site
Slide 17: Carbon and Climate Change – Action
CARBON AND CLIMATE CHANGE – ACTION 17 For personal use only Regularly report on our progress, engage effectively with key stakeholders and actively keep abreast of external developments Advocate global cooperation Sustainable Buildings Research Centre • Policy advocate – Australia and New Zealand fo
Slide 18: Strategy Framework
• Digital technology TRANSFORM • Carbon and climate change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 19: Australian Steel Products Deep Dive
AUSTRALIAN STEEL PRODUCTS DEEP DIVE For personal use only Australian Steel Products segment overview A wide range of low capital growth opportunities in intermaterial applications Highly competitive cost base; technology unlocking next wave of improvements Integrated and resilient Australian busines
Slide 20: Overview of Australian Steel Products (ASP)
OVERVIEW OF AUSTRALIAN STEEL PRODUCTS (ASP) 20 For personal use only Integrated producer of premium branded flat steel products for the domestic Australian market Key facts Sites and locations • Produces hot rolled coil and plate through to branded, value-added metallic coated and painted products M
Slide 21: ASP Business Structure and Brands
ASP BUSINESS STRUCTURE AND BRANDS 21 For personal use only Australian Steel Products (ASP) Coated & Industrial BlueScope BlueScope Flat Products Australia Building Components Steel Products Orrcon Steel
Slide 22: ASP Strategy and Behaviours
ASP STRATEGY AND BEHAVIOURS 22 For personal use only Focussing on both growth and cost, enabled by technology and behaviours ASP strategic focus areas How we behave is in our DNA MANUFACTURING DELIVER SUPPLY CHAIN LOWEST COST D COMPETITIVE FIXED COSTS EXPERIENCE PROFITABLY CUSTOMER WE DO WHAT WE SAY
Slide 23: A Portfolio of Premium Brands
A PORTFOLIO OF PREMIUM BRANDS 23 For personal use only An iconic industrial brand position with COLORBOND® steel, extending across other branded products COLORBOND® Matt steel campaign TRUECORE® steel campaign Recent marketing campaigns 50 Years of COLORBOND® steel ad campaign • Building on the icon
Slide 24: Domestic Market Exposure
DOMESTIC MARKET EXPOSURE 24 For personal use only Predominantly exposed to the building and construction market, in both residential and non-residential sub-sectors FY2019 external domestic despatch volumes Alterations and additions (A&A) A&A building approvals and house prices1 • Indicatively consu
Slide 25: Australian Steel Products Deep Dive
AUSTRALIAN STEEL PRODUCTS DEEP DIVE For personal use only Australian Steel Products segment overview A wide range of low capital growth opportunities in intermaterial applications Highly competitive cost base; technology unlocking next wave of improvements Integrated and resilient Australian busines
Slide 26: TRUECORE Steel
TRUECORE® STEEL 26 For personal use only Continues to be an exciting growth opportunity, volumes continue to grow End-user focus Through-channel focus • Sales of TRUECORE® steel continues to increase on the back of robust • Distributor and fabricator numbers are growing, with end-user demand demand
Slide 27: COLORBOND Matt Steel
COLORBOND® MATT STEEL 27 For personal use only This on trend finish continues to grow in both commercial and residential applications
Slide 28: Cladding and Façade Applications
CLADDING AND FAÇADE APPLICATIONS 28 For personal use only An exciting new growth area, with significant upside potential in commercial and residential applications Commercial and multi-residential façades Detached residential façades • New AZURE® range of façade products provide a new alternative to
Slide 29: TRU-SPEC Coil Plate
TRU-SPEC® COIL PLATE 29 For personal use only A superior quality product delivering improved volumes; investing in capacity to support further growth Improved volumes New coil plate line • In 2014, BlueScope invested in a 113kt coil plate processing line in Port • Investing in a new 160kt stretch le
Slide 30: Australian Steel Products Deep Dive
AUSTRALIAN STEEL PRODUCTS DEEP DIVE For personal use only Australian Steel Products segment overview A wide range of low capital growth opportunities in intermaterial applications Highly competitive cost base; technology unlocking next wave of improvements Integrated and resilient Australian busines
Slide 31: A Significant Transformation in Performance
A SIGNIFICANT TRANSFORMATION IN PERFORMANCE 31 For personal use only Robust earnings and cash flows through the cycle – a fundamentally different business to FY2015 Earnings transformation ASP underlying EBIT ($M) and Asian steel spread1 (A$/t) 500 456 436 • A fundamental transformation of the ASP 4
Slide 32: Managing the Cost Base and Offsetting Escalation
MANAGING THE COST BASE AND OFFSETTING ESCALATION 32 For personal use only Overarching focus to retain cost-competitiveness; tech to deliver next wave of cost improvement East Asian steel spread and steelmaking break-even (US$/t) Recent impacts on cost and efficiencies As a principle, the steelmaking
Slide 33: Automation and Robotics
AUTOMATION AND ROBOTICS 33 For personal use only Robotics and automation opportunities unlocking the next wave of productivity improvements and cost savings Automated slab yard cranes Automated BOS Limekiln Automated coil fields • Cost reductions and productivity • Retrofitting existing slab • Autom
Slide 34: Leveraging New Technology
LEVERAGING NEW TECHNOLOGY 34 For personal use only Machine learning offers opportunity to further improve already advanced manufacturing processes Metal coating line machine learning Springhill digital twin • Piloted a machine learning model to improve the coating mass • Developed a simulation model
Slide 35: Australian Steel Products Deep Dive
AUSTRALIAN STEEL PRODUCTS DEEP DIVE For personal use only Australian Steel Products segment overview A wide range of low capital growth opportunities in intermaterial applications Highly competitive cost base; technology unlocking next wave of improvements Integrated and resilient Australian busines
Slide 36: The Value of Vertical Integration
THE VALUE OF VERTICAL INTEGRATION 36 For personal use only Significant value created through integration of steelmaking assets with downstream manufacturing and channels to market • Clear objective of optimising profitability across the entirety of Port Kembla operations SYNERGIES • Units fully inte
Slide 37: Port Kembla Steelmaking Remains a Valuable Contributor to ASP
PORT KEMBLA STEELMAKING REMAINS A VALUABLE CONTRIBUTOR TO ASP 37 For personal use only Reset of cost base post 2015 has created a valuable steelmaking business East Asian benchmark and ASP steelmaking indicative cash breakeven spreads (US$/t) 400 Reset of cost base post 2015 (by ~A$100/t) to ensure
Slide 38: Extensive Channels to Market
EXTENSIVE CHANNELS TO MARKET 38 For personal use only Extensive channels to market, delivering pull-through demand and providing end-market insights Building Components Distribution Pipe and Tube • BlueScope Building Components manufactures • BlueScope Flat Steel Products services a wide • Orrcon St
Slide 39: Australian Steel Products Deep Dive
AUSTRALIAN STEEL PRODUCTS DEEP DIVE For personal use only Australian Steel Products segment overview A wide range of low capital growth opportunities in intermaterial applications Highly competitive cost base; technology unlocking next wave of improvements Integrated and resilient Australian busines
Slide 40: Significant Progress on Reducing GHG Emissions
SIGNIFICANT PROGRESS HAS BEEN MADE ON REDUCING GHG EMISSIONS 40 For personal use only ASP has significantly reduced emissions since 2005; committed to achieving 1% YoY target Examples of carbon reduction activities A range of advanced sustainable building products INCREASING Using recovered output g
Slide 41: ASP Carbon Plan
ASP CARBON PLAN 41 For personal use only A range of opportunities under investigation • Further optimisation of raw • Pellet and lump ore • Scrap optimisation, coke and • Further power self-generation 2020 material grade mix opportunities PCI adjustments opportunities Low-capital opportunities: Capi
Slide 42: Australian Steel Products Summary
AUSTRALIAN STEEL PRODUCTS SUMMARY For personal use only → An iconic industrial brand position with COLORBOND® steel → Maintaining extensive channels to market → Relative geographic isolation provides a freight advantage → A wide range of low capital growth opportunities in intermaterial applications
Slide 43: Strategy Framework
• Digital technology TRANSFORM • Carbon and climate change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 44: North Star Overview
NORTH STAR OVERVIEW 44 For personal use only Industry leading hot rolled coil producer; competitive advantage in safety, quality, service and delivery Facility overview A key part of the BlueScope portfolio • Industry leading hot rolled coil producer, established in 1995 as a 50-50 JV between BlueSc
Slide 45: An Advantaged 'Best-in-Class' Asset
AN ADVANTAGED ‘BEST-IN-CLASS’ ASSET 45 For personal use only A geographically advantaged asset, providing leading customer service Located close to customers… … and close to scrap suppliers Outstanding customer service • North Star ranked number one in 5% overall customer satisfaction in 16 of the l
Slide 46: An Advantaged 'Best-in-Class' Asset
AN ADVANTAGED ‘BEST-IN-CLASS’ ASSET 46 For personal use only Strong EBITDA and cash generation through the cycle; industry leading margins; consistently full utilisation US$M EBITDA and spread (100% basis)1 EBIT margins2 (%) 29.8% 600 U.S. mini-mill spread Moved to 100% ownership of 524 EBITDA (100%
Slide 47: Expansion Consistent with Long-Term Transition to EAF Production
EXPANSION CONSISTENT WITH LONG-TERM TRANSITION TO EAF PRODUCTION 47 For personal use only The long term trend to EAF production is still emerging in the HRC market; assisted by industry consolidation Production methodology mix (%, million metric tonnes) US HSM capacity consolidation (%, million metr
Slide 48: Recent Capacity Additions
RECENT CAPACITY ADDITIONS 48 For personal use only EAF HRC capacity being added in North Star’s region, blast furnace HRC capacity recently idled US HRC capacity additions (million metric tonnes) Overview of US HRC capacity Key Nameplate capacity additions, not utilisation adjusted for production1 M
Slide 49: Comprehensive Management of Project Execution and Integration
COMPREHENSIVE MANAGEMENT OF PROJECT EXECUTION AND INTEGRATION 49 For personal use only Strong governance and execution regime; thoroughly reviewed by internal and external experts Risk area Management Experienced • Governance steering committee including highly experienced executives project • Drive
Slide 50: Update on Expansion Project
UPDATE ON EXPANSION PROJECT 50 For personal use only Project on track with new plant to be commissioned during FY2022; full ramp up 18 months thereafter Key milestones to date • Air permit received • Major OEM contracts executed (Melt Shop, Caster, Tunnel Furnace, Cranes & High Voltage Yard) ~ $150M
Slide 51: Update on Expansion Project
UPDATE ON EXPANSION PROJECT 51 For personal use only Project on track with new plant to be commissioned during FY2022; full ramp up 18 months thereafter Current progress of site works Project team & contractor facilities New administration building underway New consumables building underway New melt
Slide 52: Strategy Framework
• Digital technology TRANSFORM • Carbon and climate change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 53: Building Products Asia and North America Business Structure
BUILDING PRODUCTS ASIA AND NORTH AMERICA BUSINESS STRUCTURE 53 For personal use only An outstanding suite of assets in high growth regions: China, India, ASEAN, US West Coast BlueScope BlueScope Tata Steel BlueScope NSC 2 100% 50% 50% 50% 50% BlueScope China Tata BlueScope Steel (TBSL) NS BlueScope
Slide 54: BlueScope China
BLUESCOPE CHINA 54 For personal use only A premium producer of metal coated and painted steel building products and engineered building solutions • BlueScope China employs over 1200 people and comprises three business units: – Coated China, with capacity to produce up to 250kt of metal coated and 15
Slide 55: BlueScope China
BLUESCOPE CHINA 55 For personal use only Significant performance turnaround completed; focussing on embedding performance and further improvement Business performance BlueScope China’s strategic pillars FY2016 to FY2019 – performance turnaround Drive customer • Customer experience enhancement experi
Slide 56: Tata BlueScope Steel, India
TATA BLUESCOPE STEEL, INDIA 56 For personal use only Supplying premium coated and painted steel products and buildings to the building and construction industry Metal coating and painting facility • Tata BlueScope Steel is an equal joint venture between Tata Steel and BlueScope, which is equity Roll
Slide 57: NS BlueScope Coated Products, ASEAN and US West Coast
NS BLUESCOPE COATED PRODUCTS, ASEAN AND US WEST COAST 57 For personal use only Outstanding footprint in large and growing markets; focussed on growing premium branded businesses • NS BlueScope Coated products is a 50:50 joint venture enterprise ASEAN region US West Coast between BlueScope and Nippon
Slide 58: NS BlueScope Performance
NS BLUESCOPE PERFORMANCE 58 For personal use only Challenging market and competitive conditions driving continuation of recent underperformance Current market conditions Coated products steel spread1 (US$/t) China coated exports (mt) • Demand in the region has been impacted by 200 macroeconomic even
Slide 59: Ignite 5G Strategy Update
IGNITE 5G STRATEGY UPDATE 59 For personal use only Focus on delivering long term profitable growth for BlueScope notwithstanding near term weak macro conditions Actions are well advanced to drive productivity and optimise the manufacturing footprint to suit market conditions CUSTOMER • Thorough revi
Slide 60: Performance Outlook
PERFORMANCE OUTLOOK 60 For personal use only NS BlueScope well leveraged to macroeconomic recovery; long term growth opportunity remains compelling Current operating outlook Long term growth story Finished steel consumption per capita (kg/person) • Weak macroeconomic conditions persist across our •
Slide 61: Strategy Framework
• Digital technology TRANSFORM • Carbon and climate change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 62: BlueScope Buildings North America (BBNA) Business Overview
BLUESCOPE BUILDINGS NORTH AMERICA (BBNA) BUSINESS OVERVIEW 62 For personal use only BBNA is a leading supplier of engineered building solutions into the US non-residential construction market • Buildings North America designs, manufactures and markets engineered building solutions into the large and
Slide 63: Update on Performance and Direction
UPDATE ON PERFORMANCE AND DIRECTION 63 For personal use only End market demand remains robust; extended lead times on high activity and weather delays remain Update on performance BBNA strategy – “Building the Future, Together” • The business continues to see strong demand conditions and order intak
Slide 64: BlueScope Properties Group (BPG)
BLUESCOPE PROPERTIES GROUP (BPG) 64 For personal use only BPG creates downstream demand for the builder network and delivers returns in its own right • BPG develops industrial properties (warehouses and distribution centres), and provides direct access to the growing warehouse and distribution centr
Slide 65: Examples of Recent BPG Projects
EXAMPLES OF RECENT BPG PROJECTS 65 For personal use only Two examples in the growing Orlando, FL region, service distribution, manufacturing and office sectors The Park @ 429 Mid Florida Logistics Park • The Park @ 429 is a Class A industrial and office park located in the city of • Mid Florida Logi
Slide 66: Strategy Framework
• Digital technology TRANSFORM • Carbon and climate change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 67: New Zealand and Pacific Steel (NZPAC)
NEW ZEALAND AND PACIFIC STEEL (NZPAC) 67 For personal use only Produces flat and long steel for The New Zealand market, and building components in the Pacific Islands • The New Zealand Steel and Pacific Islands business comprises the Waikato New Zealand Koné North Head mine, the Glenbrook steelworks
Slide 68: Business Update
BUSINESS UPDATE 68 For personal use only Recent underperformance follows a period of robust earnings; strong focus on performance going forward Elevated Vanadium Business performance Underlying EBIT ($M) 71 72 contribution (up $23M) • Demand in the residential construction sector remains robust, Per
Slide 69: Strategy Framework
• Digital technology TRANSFORM • Carbon and climate change For personal use only • Australian Steel Products • North Star OPTIMISE • Building Products Asia and North America AND GROW • Buildings North America • New Zealand and Pacific Steel • Safe and sustainable operations • Returns focus: ROIC > W
Slide 70: Major Sustainability Topics for BlueScope
MAJOR SUSTAINABILITY TOPICS FOR BLUESCOPE 70 For personal use only Major topics identified in consultation with stakeholders and other reference points Competitiveness of brands and GOVERNANCE AND products Impact of BUSINESS CONDUCT Environmental automation on regulation workforce Innovation Financi
Slide 71: Safety, Health and Wellness
SAFETY, HEALTH AND WELLNESS 71 For personal use only Safety is a key part of BlueScope’s identity; evolving our approach to the next level of safety improvement Released five year Health, Safety and Environment strategy in FY2019 LTIFR1 Lost time injuries per million hours • Greater focus on injury
Slide 72: Safety, Health and Wellness
SAFETY, HEALTH AND WELLNESS 72 For personal use only Our approach to HSE management is evolving HSE Vision HSE Goals BlueScope’s people are inspired to sustain and grow our business through trust, and innovative HSE partnerships • Think holistically about risk as an opportunity to learn and enhance
Slide 73: Sustainable Supply Chain
SUSTAINABLE SUPPLY CHAIN 73 For personal use only Significant progress made; design and rollout progressing – supplier due-diligence processes operational Processes and documentation in place Number of assessments completed / underway by assessment type • Supplier Code of Conduct published and avail
Slide 74: Sustainable Supply Chain
SUSTAINABLE SUPPLY CHAIN 74 For personal use only Tiered assessment framework enables a nuanced approach to supplier engagement; assessments underway Supplier segmentation model Supplier assessment framework ASSESSMENT ASSESSMENT ASSESSMENT REQUIREMENT PROCESSES OUTCOMES Moderate Priority 2 Priority
Slide 75: Diversity and Inclusion
DIVERSITY AND INCLUSION 75 For personal use only Strong focus and effective strategies creating demonstrable improvement in workforce diversity • BlueScope is committed to creating a safe and Female % of workforce Female % of recruitment inclusive workplace where everyone feels valued, 25% Board 25%
Slide 76: Governance and Business Conduct
GOVERNANCE AND BUSINESS CONDUCT 76 For personal use only BlueScope seeks to live the values in its Bond by promoting a culture of integrity across our global operations • We continue to work on strengthening BlueScope’s culture to support ethical and responsible work practices across every part of o
Slide 77: Financial Framework
FINANCIAL FRAMEWORK 77 For personal use only Clearly stated financial framework to guide our decision making RETURNS OPTIMAL DISCIPLINED 1 FOCUS 2 CAPITAL STRUCTURE 3 CAPITAL ALLOCATION • ROIC > WACC through the cycle • Strong balance sheet, with a target of Invest to maintain safe and reliable oper
Slide 78: Returns Focus
RETURNS FOCUS 78 For personal use only Targeting returns above cost of capital through the cycle; average free cash flow of $928M over last three years Group ROIC1 Performance (%) Net cash flow, before investment expenses and financing ($M) 18.5% 20.0% 19.5% 1,304 Implied 17% cash flow yield, based
Slide 79: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION 79 For personal use only Driving competition for capital with disciplined, returns focussed process Capital expenditure focus areas Capital and acquisition expenditure ($M) Capital management framework Sustaining North Star expansion ~630 to 730 MAINTAIN SAFE AND Found
Slide 80: BlueScope's Investment Proposition
BLUESCOPE'S INVESTMENT PROPOSITION 80 For personal use only Disciplined and advantaged steel building products company focussed on growing long term shareholder value ASSETS & CAPABILITY CAPITAL DISCIPLINE RETURNS FOCUS • Integrated and resilient Australian business • Strong balance sheet with targe
Slide 81: Questions?
For personal use only QUESTIONS?
Slide 82: BlueScope Investor Day
For personal use only BLUESCOPE INVESTOR DAY Mark Vassella Managing Director & Chief Executive Officer Tania Archibald Chief Financial Officer 27 November 2019 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058