Bluescope Steel Limited · ASX:BSL
Bluescope Steel — FY2022 Earnings Presentation
94 slides from Bluescope Steel's earnings presentation, Aug 15, 2022
Slide 1: FY2022 Financial Results Presentation
FY2022 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 15 August 2022 Pictured: BlueScope Steel Limited. ASX Code: BSL Residence in Stirling, SA ABN: 16 000 011 058 featuring COLORBOND® steel Level 11, 120 Collins St,
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 b
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY BlueScope acknowledges the Traditional Custodians of the land on which we work, live and operate. We recognise our First Nations Peoples who have inhabited Australia for millennia, their enduring connection to Country, sky, and waterways and their rich and vital cultures.
Slide 4: FY2022 Highlights
FY2022 HIGHLIGHTS Positioning for long term sustainable growth and returns • Delivered record financial results and returns to shareholders • Significant progress on climate – first Climate Action Report; broadened targets and goal; progressing abatement projects and collaborations; reviewing NZ dec
Slide 5: Safety Starts With All of Us
SAFETY STARTS WITH ALL OF US • Embedding our human-centred approach to safety – Supporting our leaders and empowering our people to increase capacity in how we manage risk – Balanced lead and lag indicators that show our proactive critical risk management and focus on reducing the frequency and seve
Slide 6: Well Positioned for the Favourable Long Term Outlook for Steel
WELL POSITIONED FOR THE FAVOURABLE LONG TERM OUTLOOK FOR STEEL The global green revolution driving demand for steel as a critical input for a clean energy future (incl. wind, solar and transmission infrastructure) Steel intensive building and construction supported by a robust pipeline of public inf
Slide 7: FY2022 Financial Highlights
FY2022 FINANCIAL HIGHLIGHTS An outstanding result; a record in BlueScope’s 20-year history as a listed company Underlying EBIT1, 2 Underlying EBIT Return Reported NPAT On Invested Capital3 $3.79Bn 41.6% $2.81Bn Up $2.06Bn on FY2021 Up from 24.8% in FY2021 Up $1.62Bn on FY2021 Free Cash Flow Net Cash
Slide 8: FY2022 Underlying EBIT by Segment
FY2022 UNDERLYING EBIT BY SEGMENT Stronger performance across all segments North Star Australian Steel Buildings and Coated Products Products North America $1,900M $1,298M $97M Up 181% on FY2021 Up 92% on FY2021 Up 11% on FY2021 Building Products Asia New Zealand and Corporate and and North America
Slide 9: Our Purpose and Strategy
OUR PURPOSE AND STRATEGY OUR PURPOSE We create and inspire smart solutions in steel, to strengthen our communities for the future OUR STRATEGY TRANSFORM GROW DELIVER DELIVER A STEP CHANGE IN GROW OUR PORTFOLIO OF DELIVER A SAFE WORKPLACE, CUSTOMER EXPERIENCE AND SUSTAINABLE STEELMAKING AND AN ADAPTA
Slide 10: Delivering Our US Growth Strategy
DELIVERING OUR US GROWTH STRATEGY Expanding our footprint and growing our brand presence across the US flat steel value chain, with total investment in the US around $5Bn Delivering our US strategy Presence across the value chain BlueScope’s US footprint • Growing North Star – one of the US’s leadin
Slide 11: Ramping Up North Star Expansion
RAMPING UP NORTH STAR EXPANSION Construction substantially complete; commencing ramp up • Construction phase substantially completed – New EAF and Ladle Metallurgy Furnaces (LMF) operating well – Second caster and new shuttle furnace operational – Recruited full complement of new employees • First c
Slide 12: Growing BlueScope Recycling
GROWING BLUESCOPE RECYCLING Increasing scrap self-sufficiency from BlueScope Recycling through low capital capacity additions and process enhancements • Established BlueScope Recycling through the acquisition of the MetalX ferrous scrap recycling business in December 2021 • Provides supply surety fo
Slide 13: Introducing BlueScope Coated Products
INTRODUCING BLUESCOPE COATED PRODUCTS Acquisition of Coil Coating business from Cornerstone Building Brands delivers significant national painting footprint in the US Business overview Strategic rationale • Second largest metal coil painter in the Rare opportunity to immediately US, with seven strat
Slide 14: Our Vision for Port Kembla
OUR VISION FOR PORT KEMBLA Progressing a range of initiatives to transition Port Kembla towards a low-carbon, modern manufacturing future Robotics, Automation & Digital Tech Future Steelmaking Technology • Delivering the next wave of customer, growth • Optimising existing operating assets; and produ
Slide 15: Climate Target Progress
CLIMATE TARGET PROGRESS Continuing our pursuit of emissions reduction projects in line with our 2030 steelmaking and non-steelmaking targets Steelmaking target1 Non-steelmaking target1,2 (92% of total emissions) (7% of total emissions) GHG emissions intensity GHG emissions intensity (tCO2-e per tonn
Slide 16: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Embedding sustainability in all that we do Embedding sustainability in all that we do Sustainable Supply Chain Inclusion and Diversity • Delays observed in assessment • Continuing our efforts to reflect the processes due to pandemic-related communities in which we operate d
Slide 17: Segment review
[ ] Segment review 17
Slide 18: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Record full year performance; 2H FY2022 softer on lower despatches due to supply chain constraints and disruptions Underlying EBIT ($M) • Domestic end-use segment demand 1,298 remained robust, especially across the building and construction segment 610 2H – Despatches in 2H
Slide 19: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Underlying demand remained robust in FY2022, however despatches impacted by supply chain constraints and disruptions Total Australian domestic despatch volumes (kt) Dwelling • Approximately half of product goes to Alterations & Total construction % shown in dark red Additio
Slide 20: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Detached building approvals have eased back to more typical levels; pipeline of work remains robust. Renovation and non-residential approvals remained elevated Monthly dwelling approvals1 (‘000 units, annualised) Alterations and additions approvals2 ($Bn) Detached back in u
Slide 21: North Star
NORTH STAR Record full year performance with second half lower on softening steel spreads US steel mill capacity utilisation3 (%) Underlying EBIT ($M) • Softer steel spreads in 2H FY2022 on 100% North Star 1,900 lower steel prices, noting specific sales 80% mix relative to benchmark2 672 2H Total US
Slide 22: North Star
NORTH STAR Underlying automotive sector demand remains strong, but output impacted by supply chain and inventory constraints. Non-residential construction activity recovered to pre-pandemic levels Automotive1 Non-residential construction2 Manufacturing3 (Light vehicle sales, annualised million units
Slide 23: Buildings and Coated Products North America
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Significant recovery in performance in 2H FY2022, with improved margins Underlying EBIT ($M) 97 • Demand conditions in the core 88 17 engineered buildings business remained robust in 2H FY2022 79 2H 71 • Margins recovered in 2H FY2022 on stronger selling p
Slide 24: Building Products Asia and North America
BUILDING PRODUCTS ASIA AND NORTH AMERICA Robust performance, driven largely by strength in North America Coated Products Underlying EBIT ($M) North America – EBIT $253M FY2022; $90M in 2H FY2022 419 • Delivered a softer result in 2H FY2022, driven by lower margins on softening North 334 American fla
Slide 25: New Zealand and Pacific Islands
NEW ZEALAND AND PACIFIC ISLANDS Record result underpinned by robust demand Underlying EBIT ($M) • Robust demand across construction 229 and infrastructure sectors in 2H FY2022 130 142 2H • Despatches improved on 1H FY2022 due to lower level of supply chain and 73 pandemic related disruptions 57 86 1
Slide 26: Underlying Group EBIT Variance
UNDERLYING GROUP EBIT VARIANCE Strength of 2H FY2022 underlying EBIT result second only to record 1H FY2022 performance FY2022 vs FY2021 ($M) 2H FY2022 vs 1H FY2022($M) Net spread increase $2,480M Conversion & other costs ($M) Cost improvement initiatives 41 Raw material costs ($M) Escalation2 (450)
Slide 27: Financial framework
Financial framework 27
Slide 28: Financial Framework Underpinning Resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE Strong focus on driving financial performance and disciplined allocation of capital Disciplined Returns Focus Robust Capital Structure Capital Allocation • ROIC > WACC on average through • Strong balance sheet, with a target • Invest to maintain safe and r
Slide 29: Returns Focus Delivering ROIC
RETURNS FOCUS DELIVERING ROIC Targeting returns above cost of capital through the cycle • ROIC1 is the primary Group ROIC Performance (%) measure of performance across all business units and is a key focus for the Group. ROIC is a key 41.6% discipline for: 24.8% 19.5% – performance 7.6% management F
Slide 30: Returns Focus Maximising Cash Generation
RETURNS FOCUS MAXIMISING CASH GENERATION Strong operating cash flow funding investment in the portfolio and returns to shareholders Net cash flow ($M) Net cash / (debt)1 ($M) (before investment exp and financing) $M FY2020 FY2021 FY2022 2H22 (475) Reported EBITDA1 844 2,246 4,398 1,884 Adjust for ot
Slide 31: Returns Focus Working Capital
RETURNS FOCUS WORKING CAPITAL Increase in working capital due to high steel pricing and spread environment, along with strong activity levels and supply chain disruptions across the business 409 (384) 3,073 (85) 2,795 338 Driven by robust steel 1,687 prices and strong activity levels $M 1,269 1,332
Slide 32: Returns Focus Inventory Movement
RETURNS FOCUS INVENTORY MOVEMENT Increase predominantly at ASP and BCPNA – driven by higher rate on strong steel prices, BCP acquisition and increased volumes on supply chain disruptions to despatches RM $1,300M WIP $950M $410M increase comprised of segment movements: RM $1,202M FG $1,242M (includin
Slide 33: Robust Capital Structure Net Cash Position; Ample Liquidity
ROBUST CAPITAL STRUCTURE NET CASH POSITION; AMPLE LIQUIDITY Strong balance sheet providing the foundation to deliver long term sustainable earnings and growth • Maintained investment grade credit Net cash / (debt)1 ($M) Liquidity ($M) ratings (undrawn facilities and cash) 798 3,694 • Strong balance
Slide 34: Disciplined Capital Allocation Capital Expenditure
DISCIPLINED CAPITAL ALLOCATION CAPITAL EXPENDITURE Investing for sustainable earnings growth Capital allocation framework Capital and acquisition expenditure1 ($M) Operating 1,121 Asset Sales Divestments Cash Flow 96 North Star Expansion1 11 • Total project cost expected to be around 10% above the U
Slide 35: Disciplined Capital Allocation Future Investment Priorities
DISCIPLINED CAPITAL ALLOCATION FUTURE INVESTMENT PRIORITIES Indicative ~A$1.9Bn of projects identified for growth, foundational investment and to position the business for a low carbon future Recent investments ($M) Future investment priorities1 ($M) Project FY23 FY27 ~A$2.0Bn New mill to support en
Slide 36: Disciplined Capital Allocation Shareholder Returns
DISCIPLINED CAPITAL ALLOCATION SHAREHOLDER RETURNS $1Bn returned in FY2022; announced unfranked final dividend of 25 cps and extension of existing on- market buy-back program • BlueScope’s capital management policy is to distribute at least 50% of free Dividends paid and buy-backs2 ($M) cash flow to
Slide 37: Segment guidance for 1H FY2023
Segment guidance for 1H FY2023 37
Slide 38: Segment Guidance for 1H FY2023
SEGMENT GUIDANCE FOR 1H FY2023 Outlook subject to assumptions and qualifiers referenced on page 40 Australian Steel Products North Star Buildings & Coated Products US • Expect a lower result compared to 2H FY2022 • Expect a result of around a quarter of 2H FY2022 • Expect a result around twice that
Slide 39: Group outlook and summary
Group outlook and summary 39
Slide 40: 1H FY2023 Group Outlook
1H FY2023 GROUP OUTLOOK1 • Underlying EBIT in 1H FY2023 is expected to be in the range of $800M to $900M, driven particularly by significantly lower Midwest US HRC steel spreads and weaker Asian HRC steel spreads • For the purposes of the outlook, the Company has made the following 1H FY2023 average
Slide 41: A Resilient Business Delivering Returns Through the Cycle
A RESILIENT BUSINESS DELIVERING RETURNS THROUGH THE CYCLE A different kind of steel company being purpose-led, sustainability focussed and differentiated by strong brands Well positioned with a high-quality asset portfolio to take advantage of favourable industry and end use trends Disciplined appro
Slide 42: Questions
Questions 42
Slide 43: A Different Kind of Steel Company
A Different Kind of Steel Company What makes us different? Purpose-led and sustainability focussed High-quality asset portfolio Leading product technologies, branding & channels Financial strength & cost competitiveness Deploying financial strength for long term sustainable growth and returns 43
Slide 44: Our Bond / Our Purpose
Our Bond Our Customers are our partners Our People are our strength Our Our Shareholders are our foundations Purpose Our Local Communities are our homes We create and inspire smart solutions in steel, to strengthen our communities for the future. 44
Slide 45: Five Key Sustainability Outcomes
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED FIVE KEY SUSTAINABILITY OUTCOMES Sustainable growth and transformation Operate and transform our business for enduring success with good governance, capital discipline, customer focus and strengthened people, process and technology capabilities Safe, healthy
Slide 46: Health and Safety
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED HEALTH AND SAFETY Continuing to evolve our approach to safety by building capacity and driving a greater focus on engagement and learning Our evolved approach means we: TRIFR total recordable injury frequency rate, per million hours worked1 • Continue to dri
Slide 47: Climate Action
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED CLIMATE ACTION A range of opportunities in progress, supported by the 5-year $150M climate investment program Optimising current Emerging and breakthrough Introducing BlueScopeX™ operating assets technologies • Making investments in small- Port Kembla, Aus P
Slide 48: Inclusion, Diversity and Social Impact
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED INCLUSION, DIVERSITY AND SOCIAL IMPACT We continue to build an inclusive workforce, which reflects the diversity of the communities in which we operate, and are working to drive positive social impact and mitigate adverse impacts Inclusion & Diversity Women
Slide 49: Supply Chain Sustainability
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED SUPPLY CHAIN SUSTAINABILITY We foster responsible business practices and uphold human rights through engagement, risk assessment and improvement activities Our Approach FY2022 Progress • Completed the Engage and Assess process with 308 suppliers We prioritis
Slide 50: High Quality Asset Portfolio
2 HIGH QUALITY ASSET PORTFOLIO QUALITY ASSETS ACROSS LARGE AND GROWING MARKETS • Strong operating leverage from diverse business India China ASEAN portfolio • A leader in metal coating and painting for building and construction • Iconic industrial brand position of COLORBOND® steel • Integrated and
Slide 51: High Quality Asset Portfolio Diversified Business
2 HIGH QUALITY ASSET PORTFOLIO DIVERSIFIED BUSINESS Geographic diversity and increasing contribution from value-added products Underlying EBITDA by region BlueScope despatch volume mix 100% Buildings and Coated NZ & Pacific Products North America Asia $256M 90% $247M North America Building products
Slide 52: Broad Exposure to End-Use Segments
2 HIGH QUALITY ASSET PORTFOLIO BROAD EXPOSURE TO END-USE SEGMENTS Broad exposure across geographies, largely focused on the building and construction industry BlueScope indicative despatch volume split by region and end-use segment1 Manufacturing, Other (Exports) Agri & Other 5% Automotive North Sta
Slide 53: Leading Product Technologies
3 LEADING PRODUCT TECHNOLOGIES Continued investment in research & development to maintain leadership in steel coating and painting technologies Product Technology and Development Leadership • Advanced pre-painted and metallic coating development for building, construction and home appliance segments
Slide 54: Leading Brands and Channels
3 LEADING BRANDS AND CHANNELS A portfolio of many well-known and respected names to support our premium branded positions; clear focus on knowing our end customers and maintaining strong channels to market Brands Channels Australia ® ® Zealand New ® ® Asia ® ® ® ® America North ® ® ® 54
Slide 55: ~$367M Net Cash ~$3.1Bn Liquidity
4 FINANCIAL STRENGTH & COST COMPETITIVENESS GUIDED BY OUR FINANCIAL FRAMEWORK Strong returns, a robust balance sheet and a disciplined approach to capital allocation Returns Robust Disciplined Focus Capital Structure Capital Allocation Targeting shareholder returns Focus on ROIC and free cash genera
Slide 56: Financial Strength & Cost Competitiveness: Australian Steel Products
4 FINANCIAL STRENGTH & COST COMPETITIVENESS AUSTRALIAN STEEL PRODUCTS Australian steelmaking breakeven at minimum recent spreads; benefits from vertical integration Asian steel spread1 & estimated steelmaking The value of vertical integration cash breakeven2 (US$/t) • Clear objective of optimising p
Slide 57: Financial Strength & Cost Competitiveness: North Star
4 FINANCIAL STRENGTH & COST COMPETITIVENESS NORTH STAR Strong EBITDA and cash generation through the cycle; industry leading margins; consistently full utilisation US$M EBITDA and spread (100% basis) EBIT margins3 (%) 1,400 U.S. mini-mill spread1 1,352 42% 1,300 EBITDA (100% basis) 29% 1,000 Cash fl
Slide 58: Deploying Financial Strength Future Investment Priorities
5 DEPLOYING FINANCIAL STRENGTH FUTURE INVESTMENT PRIORITIES Indicative ~A$1.9Bn of projects identified for growth, foundational investment and to position the business for a low carbon future Recent investments ($M) Future investment priorities1 ($M) Project FY23 FY27 ~A$2.0Bn New mill to support en
Slide 59: Digitally Transforming Our Business
5 DEPLOYING FINANCIAL STRENGTH DIGITALLY TRANSFORMING OUR BUSINESS Delivering the next wave of customer, growth and productivity improvements through technology Strengthen Capabilities Right skills and behaviours foundations to Data and platforms Investing in enabling platforms Transfer learnings ac
Slide 60: Investing in Growth at ASP
5 DEPLOYING FINANCIAL STRENGTH INVESTING IN GROWTH AT ASP A wide range of low capital growth opportunities in intermaterial applications Premium coated and painted products Value-added commodity products Residential steel framing Cladding & facade applications TRU-SPEC® coil plate • Sales of TRUECOR
Slide 61: Additional Information: Group-level Material
Additional Information: Group-level Material 61
Slide 62: Financial Headlines
FINANCIAL HEADLINES TWELVE MONTHS ENDED FY2022 vs $M (unless marked) 30 JUNE 2021 30 JUNE 2022 FY2021 Total revenue 12,902.3 19,029.9 External despatches of steel products (kt) 7,709.5 7,696.2 EBITDA − Underlying 1 2,211.6 4,336.7 EBIT − Reported 1,758.5 3,848.9 − Underlying 1 1,723.8 3,787.
Slide 63: Reconciliation Between Reported and Underlying EBIT and NPAT
RECONCILIATION BETWEEN REPORTED AND UNDERLYING EBIT AND NPAT1 FY2021 FY2022 $M EBIT $M NPAT $M EBIT $M NPAT $M Reported results 1,758.5 1,193.3 3,848.9 2,810.2 Underlying adjustments Discontinued business (gains) / losses (9.6) (9.0) (3.0) (1.9) Asset impairments / (write-backs) - - (37.3) (11.5) Bu
Slide 64: Underlying Earnings, Net Finance and Tax Cost
UNDERLYING EARNINGS, NET FINANCE AND TAX COST 1H 2H $M FY2022 Breakdown of net finance costs FY2022 FY2022 Reg-S Bonds 19.1 Underlying EBIT 2,204.1 1,583.1 3,787.2 Core bilateral loan facility charges 7.4 Underlying finance costs (37.1) (34.2) (71.3) Leases 27.8 Interest revenue 6.5 6.8 13.3 Amortis
Slide 65: Summary of Financial Items by Segment
SUMMARY OF FINANCIAL ITEMS BY SEGMENT Sales revenue Total steel despatches $M FY2021 1H FY2022 2H FY2022 FY2022 '000 tonnes FY2021 1H FY2022 2H FY2022 FY2022 Australian Steel Products 5,848.5 3,963.0 4,265.7 8,228.7 Australian Steel Products 3,146.4 1,582.6 1,573.7 3,156.3 North Star BlueScope Steel
Slide 66: Cash Flow Statement
CASH FLOW STATEMENT $M FY2021 1H FY2022 2H FY2022 FY2022 Reported EBITDA 2,246.3 2,514.3 1,884.0 4,398.3 Adjust for other cash profit items (12.6) (9.2) (42.5) (51.7) Cash from operations 2,233.7 2,505.1 1,841.5 4,346.6 Working capital movement (inc provisions) (447.4) (1,141.0) (258.2) (1,399.2) Dr
Slide 67: Balance Sheet
BALANCE SHEET $M 30 Jun 2021 31 Dec 2021 30 Jun 2022 Assets Cash 1,961.9 1,903.6 1,682.7 Receivables and Contract Assets * 1,682.4 1,877.7 2,215.3 Inventory * 2,379.8 3,358.5 3,767.7 Property, Plant & Equipment 4,521.9 4,880.6 5,266.8 Right Of Use Assets 357.9 328.8 374.4 Intangible Assets 1,695.9 1
Slide 68: Prudent Maturity Profile
PRUDENT MATURITY PROFILE Syndicated facility replaced in July 2021 with bilateral facilities with relationship bank group – extending tenor and reducing cost of main revolving debt facilities Maturity profile1 ($M) Bilateral Loan Agreements Reg-S Bonds NS BlueScope JV facilities (100%) Inventory Fin
Slide 69: Committed Debt Facilities as at 30 June 2022
COMMITTED DEBT FACILITIES AS AT 30 JUNE 20221 Committed Drawn Maturity Local currency A$M A$M Bilateral Loan Agreements - Tranche A Jul 2024 A$335M A$335M - - Tranche B Jul 2025 A$335M A$335M - - Tranche C Jul 2026 A$335M A$335M - Reg-S Bonds May 2023 US$300M A$436M A$436M Inventory Finance Sep 2023
Slide 70: Buy Back History
BUY BACK HISTORY 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 2H FY22 Total Shares bought (M) 12.8 12.0 9.2 18.9 17.0 14.6 2.9 - - 13.6 18.8 119.8 Consideration ($M) 150 148 152 293 217 186 34 - - 285 353 1,818 Average price ($/sh) $11.74 $12.37 $16.50 $15.50 $12.8
Slide 71: Indicative Half Year EBIT Sensitivities
INDICATIVE HALF YEAR EBIT SENSITIVITIES1 Sensitivities may vary subject to volatility in prices, currencies and market dynamics – refer to page 76 Australian Steel Products segment New Zealand Steel & Pacific Steel segment North Star segment +/- US$10/t move in average benchmark hot rolled +/- US$10
Slide 72: Additional Information: Segment Material
Additional Information: Segment Material 72
Slide 73: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 '000 Tonnes FY2021 1H FY2022 2H FY2022 FY2022 Revenue 5,848.5 3,963.0 4,265.7 8,228.7 Hot rolled coil 624.4 373.4 319.0 692.4 Underlying EBIT
Slide 74: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Underlying EBIT variance FY2022 vs FY2021 ($M) 2H FY2022 vs 1H FY2022 ($M) Net spread increase $865M Raw material costs ($M) Coal (incl. lower coke margin of -$18M) (328) Conversion & other costs ($M) Iron ore 161 Cost improvement initiatives 24 Scrap & alloys (66) (925) Es
Slide 75: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Spreads contracted during 2H FY2022 on lower HRC prices. Softer raw material prices saw some spread recovery towards the end of the half Indicative steelmaker HRC lagged spread Notes on calculation: • ‘Indicative steelmaker HRC spread’ $800 representation based on simple in
Slide 76: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Relationships with benchmark pricing • Selling prices across majority of domestic product correlated with SBB East Asia HRC price; lagged generally three to five months; degree of Steel prices correlation between realised and benchmark prices can vary within a given half ye
Slide 77: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Despatch mix (Mt) FY2022 Product Mix 1.60 1.58 1.57 1.55 0.16 0.16 0.35 0.30 Export Export 0.08 0.09 Domestic - 0.07 0.09 externally sourced HRC Metal Coated Plate Painted 1.31 1.33 CRC Other inc ext sourced Domestic - BSL 1.18 1.18 manufactured Domestic 1H FY2021 2H FY2021
Slide 78: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS FY2022 Revenue FY2022 Underlying costs (to EBIT line) A$8,229M Non-steel business Non-steel business costs relate to: A$6,931M • Export coke sales Conversion & overhead • Cold ferrous feed to Infrabuild components (in order of value): • Export coke • Cold ferrous Non-steel
Slide 79: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Record high detached approvals translated into a robust pipeline of work, but commencements were impacted by a range of supply chain disruptions, such as floods and transport outages Long-Term Dwelling Approvals: rolling 12 months1 (‘000) Dwelling Commencements: by halves2
Slide 80: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Non-residential approvals steady but elevated during pandemic period. Strong public investment provided key support in social and institutional segment, especially via health and education Non-Residential Building Approvals: rolling 12 months1 (A$Bn) Non-Residential Work Do
Slide 81: North Star
NORTH STAR Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 Revenue 2,377.7 2,436.5 2,058.0 4,494.5 Revenue 1,796.6 1,782.4 1,477.2 3,259.6 Under
Slide 82: North Star
NORTH STAR Underlying EBIT variance FY2022 vs FY2021 ($M) 2H FY2022 vs 1H FY2022 ($M) Net spread increase $1,281M (638) 1,900 (101) (16) 59 1,919 Net spread decrease 1,229 $595M (531) 677 672 (64) 18 15 5 FY2021 Prices Raw Conversion Volume FX FY2022 1H Prices Raw Conversion Volume FX 2H material &
Slide 83: North Star
NORTH STAR North Star expansion capital spend profile Accounting capital spend (incl. capital accruals) Total to 1H FY2023 1H FY2021 2H FY2021 1H FY2022 2H FY2022 30-Jun-20 (expected) US$M 140.7 212.7 164.0 129.4 69.5 ~55 A$M 210.0 294.0 212.5 176.4 96.2 ~80 Cash capital spend Total to 1H FY2023 1H
Slide 84: Buildings and Coated Products North America
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 Revenue 1,098.7 744.5 841.8 1,586.3 Revenue 819.0 54
Slide 85: Buildings and Coated Products North America
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Underlying EBIT variance FY2022 vs FY2021 ($M) 2H FY2022 vs 1H FY2022 ($M) Net margin decrease $26M 301 (296) Net margin increase $58M 97 88 2 79 (32) (31) 34 2 3 1 88 18 FY2021 Prices1 Raw Conversion Volume FX FY2022 1H Prices1 Raw Conversion Volume FX 2H
Slide 86: Building Products Asia & North America
BUILDING PRODUCTS ASIA & NORTH AMERICA Financial and despatch summaries Key segment financial items Despatches by business $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 ‘000 metric tonnes FY2021 1H FY2022 2H FY2022 FY2022 Revenue 3,125.6 2,158.4 2,132.5 4,290.9 Thailand 396.6 172.1 160.9 333.0
Slide 87: Building Products Asia & North America
BUILDING PRODUCTS ASIA & NORTH AMERICA Underlying EBIT variance FY2022 vs FY2021 ($M) 2H FY2022 vs 1H FY2022 ($M) Net spread increase $138M (1,056) 1,146 (47) 419 334 (18) 12 Net spread decrease $53M 48 266 (1) 37 (89) (26) 153 (37) 3 FY2021 Export Domestic Raw Conversion Volume FX FY2022 1H Export
Slide 88: New Zealand & Pacific Islands
NEW ZEALAND & PACIFIC ISLANDS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked FY2021 1H FY2022 2H FY2022 FY2022 '000 Tonnes FY2021 1H FY2022 2H FY2022 FY2022 Revenue 894.3 518.0 607.2 1,125.2 Domestic despatches Underlying EBITDA 151.6 99.7 156.9 25
Slide 89: New Zealand & Pacific Islands
NEW ZEALAND & PACIFIC ISLANDS Underlying EBIT variance FY2022 vs FY2021 ($M) 2H FY2022 vs 1H FY2022 ($M) Net spread increase $123M Includes $6M improvement in vanadium by-product contribution (58) 142 229 (46) (2) 24 Includes $3M improvement in vanadium by-product contribution Net spread increase $3
Slide 90: New Zealand & Pacific Islands
NEW ZEALAND & PACIFIC ISLANDS Despatch mix (Mt) FY2022 Product Mix 323.1 1.3 304.2 302.9 1.8 283.8 0.1 Export long Domestic 70.0 45.6 1.2 49.4 Export flat 40.3 106.7 102.8 111.6 Domestic long 109.1 HRC Plate CRC Metal Coated Painted 145.1 154.0 141.8 Domestic flat Other flat products 133.2 Pacific S
Slide 91: New Zealand & Pacific Islands
NEW ZEALAND & PACIFIC ISLANDS Strong pipeline of construction work remains in place, however Central Bank pursuing interest rate tightening cycle to tame overheating and high inflation Residential Building Consents: rolling 12 months1 (‘000) Residential Work Put in Place: by quarters2 (NZ$Bn) Consen
Slide 92: New Zealand & Pacific Islands
NEW ZEALAND & PACIFIC ISLANDS The East Asian rebar price influences domestic and export long product pricing SBB East Asian rebar price, unlagged (US$/t) $900 $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 Jan-19 Jan-20 Jan-21 Jan-22
Slide 93: Glossary
GLOSSARY 1H Six months ended 31 December in the relevant financial year FY2022 12 months ending 30 June 2022 1H FY2021 Six months ended 31 December 2020 FY2023 12 months ending 30 June 2023 1H FY2022 Six months ended 31 December 2021 HBI Hot briquetted iron 1H FY2023 Six months ended 31 December 202
Slide 94: FY2022 Financial Results Presentation
FY2022 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 15 August 2022 Pictured: BlueScope Steel Limited. ASX Code: BSL Residence in Stirling, SA ABN: 16 000 011 058 featuring COLORBOND® steel Level 11, 120 Collins St,