Bisalloy Steel Group Ltd · ASX:BIS
Bisalloy Steel — Investor Presentation (July 2011)
20 slides from Bisalloy Steel's investor presentation, Jul 12, 2011
Slide 1: Investor Presentation on Joint Venture
For personal use only 12 July 2011 Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000 Investor Presentation on Joint Venture Attached please find an investor presentation regarding the joint venture recently entered into by Bisalloy Steel Group L
Slide 2: Joint Venture with Jinan Iron & Steel Co. Ltd
For personal use only Joint Venture with Jinan Iron & Steel Co. Ltd A major growth platform for Bisalloy July 2011
Slide 3: Who we are
Who we are Australia’s only manufacturer of high-strength structural, wear-resistant For personal use only quenched and tempered (“Q&T”) steel plate. ‘Bisplate’ Q&T brand has strong market recognition in Australia and many parts of Asia. Strong distribution network across Australia, and South-
Slide 4: Our Structure
Our Structure For personal use only Bisalloy Steel Group Bisalloy Steels Bisalloy Asia Bisalloy Steels Bisalloy Asia • Australia’s only • Distribution in Thailand manufacturer of high and Indonesia via majority strength structural and ownership in local wear resistant Q&T steel companies – 85% in pl
Slide 5: What we do
What we do For personal use only World class, continuous flow processing plant in Unanderra, NSW with capacity of around 65,000 tonnes per annum. Raw material, in the form of steel plate (i.e. “greenfeed”), sourced from multiple steel mills domestically and overseas. Greenfeed heated and rapid
Slide 6: Joint Venture with Jinan - overview
Joint Venture with Jinan - overview For personal use only July 2011, Bisalloy enters a 50:50 Cooperative Joint venture with Jinan Iron & Steel Co. Ltd for a 10 year term. JV for the production, sale and distribution of Q&T steel plate into China & other international markets. Estimated Chinese
Slide 7: Major Growth Platform for Bisalloy
Major Growth Platform for Bisalloy For personal use only JV initially focused on import replacement in China, but with up to 30% of JV capacity available for Bisalloy to market outside of China. Gives Bisalloy increased access to dynamic global markets without the risk of significant capital exp
Slide 8: Joint Venture & Bisalloy Production
Joint Venture & Bisalloy Production For personal use only Jinan has total heat treatment capacity of 370,000 tonnes per annum, and at least 150,000 tonnes per annum will initially be made available to the JV. Jinan’s heat treatment facilities include new, world class German designed Q&T producti
Slide 9: Jinan – a strong partner for Bisalloy
Jinan – a strong partner for Bisalloy For personal use only Jinan is a subsidiary of the Shandong Iron & Steel Group. The Shandong Group is one of China’s top 10 steel producers and expects to produce around 40million tonnes of raw steel in 2011. Jinan listed on the Shanghai Stock Exchange in 20
Slide 10: Risk Management
Risk Management For personal use only Bisalloy owns the trademark rights to “Bisplate” in China and is only licensing these to the JV. Jinan is a trusted partner of 5 years to Bisalloy. Separate licence agreements established for Bisalloy IP and trademarks. The JV only responsible for Q&T pl
Slide 11: Australian Growth initiatives
Australian Growth initiatives For personal use only Growth in resources demand will underpin both maintenance and new capital equipment requirements. Targeted initiatives to build presence and secure market share growth in domestic markets proving successful. Stock holding strategy being rolle
Slide 12: FY11 Guidance
FY11 Guidance For personal use only EBITDA before FX of between $7.5m and $7.9m for FY2011. An improvement of over 30% against the equivalent EBITDA in FY2010. Continued strengthening of the Australian dollar provides challenges in both maintaining our export markets and by causing the domesti
Slide 13: Our business model
Our business model For personal use only Page 12
Slide 14: Performance drivers
Performance drivers For personal use only Australian processing operation is volume and margin driven: • Largest component of cost is raw materials (approx. 80% of total cost at historical volumes). • Simple variable cost structure (freight, energy, overtime). • Modest fixed cost base. Less than 80
Slide 15: 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 Plate mining applications such as dump trucks and 10% dragline buckets Structural plate – Bisplate 60, 70, 80, 80PV Wear Plate
Slide 16: Marketing mix
For personal use only Marketing mix Page 15
Slide 17: Bisplate® Process Flow
Bisplate® Process Flow For personal use only Long term benefits from BIS’s Q&T intellectual property & proven product performance Page 16
Slide 18: Corporate
Corporate For personal use only Share Price (52 week range): Substantial Shareholders: 10 cents to 20 cents Anchorage and Mr. P Cave 19.72% Currently around 16 cents Balron Nominees & Associates 18.18% Market Capitalisation: RBC Dexia Investor Services 12.01% $34 million Prospect Custodian Ltd 7.55%
Slide 19: Disclaimer
Disclaimer 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 rely
Slide 20: Contact
Contact For personal use only Robert Terpening Managing Director +61 2 4272 0444 David MacLaughlin Company Secretary/CFO Further information can be obtained from our web site: www.bisalloy.com.au Page 19
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