Bluescope Steel Limited · ASX:BSL
Bluescope Steel — FY2007 Earnings Presentation
90 slides from Bluescope Steel's earnings presentation, Aug 20, 2007
Slide 1: FY2007 Results Presentation
For personal use only FY2007 Results Presentation Period Ended 30 June 2007 Kirby Adams, Managing Director and Chief Executive Officer Paul O’Malley, Chief Financial Officer 30 June 2007 ASX Code: BSL
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: July 2002 to August 2007
July 2002 to August 2007…. For personal use only Profitable Profitable Dynamic Dynamic Through Throughthe the Global GlobalSteel Steel Cycle Cycle Market Market Strong StrongBoard Board&& Value ValueAdded Added Management Management Branded Branded Team Team Products Products Growth Growth A VERY DI
Slide 4: Zero harm is our goal for our team and communities
Zero harm is our goal for our team and communities For personal use only Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate 18 70 16 NSW Manufacturing 60 16 Medically treated injuries per million man-hours worked 27.9 in 2005 60 14 Lost time injuries per million man-hours worked
Slide 5: Group financial headlines FY2007 vs. FY2006
Group financial headlines FY2007 vs. FY2006 Across the board improvements Twelve months ended 30 June Variance For personal use only 2007 2006 % Revenue A$8,913M A$8,031M Up 11% External despatches 7.621M tonnes 7.559M tonnes Up 1% EBITDA A$1,423M A$850M Up 67% EBIT A$1,099M A$556M Up 98% NPAT - Rep
Slide 6: Cashflow – very strong leading to lower debt/gearing
Cashflow – very strong leading to lower debt/gearing For personal use only A$M FY2003 FY2006 FY2007 Very strong operations First full year of performance (72% up on FY Source 2003) operations after listing Cashflow from operations 795 903 1,364 Working capital improvement initiatives continue to pay
Slide 7: Continuing to reward our shareholders as we grow
Continuing to reward our shareholders as we grow Share Buybacks – Public listing to 30 June 2007 Total return to shareholders since BSL’s For personal use only Purchased and cancelled 116m shares public listing (July 2002): − on market – 90m shares − off market – 26m shares Share buybacks $ 70
Slide 8: Record sales volumes, driven by strong demand
Record sales volumes, driven by strong demand for BlueScope’s products FY2005 FY2006 FY2007 For personal use only Exports Exports Exports 16% 15% 28% 41% 36% 15% 7% Exp 15% 21% 4% North orts America 9% Exports - Am Euro eric p India e/Med/M as 17% E/ 6% Exports - Asia 11% Australia Asia 32% 35% 10%
Slide 9: Sales into Australian market increase 10% and 250,000 tonnes
Sales into Australian market increase 10% and 250,000 tonnes Sales Tonnes FY2006 FY2007 For personal use only 3,000 Construction Construction demand for 59% BlueScope’s 2,500 57% products remains Non-dwelling 25% strong. Non-dwelling 23% (0.657) Stronger A$ a 2,000 (0.547) concern in terns of Des
Slide 10: EBIT variance FY2006 to FY2007 by item
EBIT variance FY2006 to FY2007 by item Recovery from • Productivity initiatives 109 For personal use only Asset Sales Western Port fire and • Cost escalation (127) - Vistawall 59 increased Asian • Freight (28) - Other (2) despatches • Other 12 Tinplate closure 142 Redundancy provision 41 Smo
Slide 11: Reporting Segment Performance
For personal use only Reporting Segment 1200 Performance 1100 1000 900 800 700 600 500 400 Full year June Hot Rolled Coated & Bldg NZ & Pacific Coated & Bldg Hot Rolled Coated & Bldg Corporate & Discontinued Full year June 2006 Products Products Aust Steel Products Products Asia Products Nth Product
Slide 12: Upstream Businesses
For personal use only Upstream Businesses Hot Rolled Products Australia Hot Rolled Products North America Page 12
Slide 13: Hot Rolled Products Australia (PKSW) – outstanding operational strength
Hot Rolled Products Australia (PKSW) – outstanding operational strength continues to meet strong demand Markets Domestic demand improves, with despatches up 22% For personal use only Hot rolled coil (HRC) sales to pipe and tube PKSW sales revenue up 13% to A$3,919m ― Strong engineering and non
Slide 14: Port Kembla Steelworks despatches – richer product sales mix
Port Kembla Steelworks despatches – richer product sales mix and stronger domestic demand 6000 For personal use only 5500 5,268 5,210 5,210 5000 4,922 4500 28% 40% 30% 30% 4000 3500 (ktonnes) 3000 21% 19% 16% 2500 16% 2000 1500 51% 44% 51% 54% 1000 500 0 2005 2006 2007 2007 PF ** 100% exported, with
Slide 15: Hot Rolled Products North America – outstanding operational performance
Hot Rolled Products North America – another outstanding operational performance For personal use only This segment includes: Markets North Star BlueScope Steel (50% interest) Continued strong demand for BlueScope’s products in North America and Europe. Castrip LLC and North American and Euro
Slide 16: New Zealand Steel
For personal use only New Zealand Steel Page 16
Slide 17: New Zealand and Pacific Islands Products
New Zealand and Pacific Islands Products – higher zinc costs and For personal use only unfavourable NZ$/US$ exchange rate flatten earnings Sales revenue up 3% to A$728M Markets Domestic despatches up 9% largely due to stronger construction market 189 Consequently, exports sales lower. 200 175
Slide 18: Midstream & Downstream Business
For personal use only Midstream & Downstream Business Coated & Building Products Australia Coated & Building Products North America Coated & Building Products Asia Page 18
Slide 19: Coated and Building Products Australia
Coated and Building Products Australia – improved operational performance but For personal use only stronger A$ and higher metal coating costs effect earnings Sales revenue up 15% to A$3,186M Tin plate operations ceased April 2007. Not FY 2007 return on net assets (pre-tax) 3% reflected in this
Slide 20: Coated and Building Products Australia – Second half vs First half
Coated and Building Products Australia – Second half vs First half FY 2007 For personal use only Half year Half year ended Dec Domestic Raw Material Exchange Conversion & ended June 2006 Export Prices Prices Volume Costs Mix Rates Oth Costs Other One-offs 2007 100 $17m $5m 75 $3m Higher Exports (72)
Slide 21: Coated and Building Products North America (Butler Buildings)
Coated and Building Products North America (Butler Buildings) – downstream success in North America continues For personal use only Sales revenue down 6% to A$788M Note: The Vistawall business was sold on 29 June 2007 for US$190M. FY2007 return on net assets (pre-tax) 50% Its financials are not
Slide 22: Coated and Building Products Asia – improved earnings but mixed result
Coated and Building Products Asia – improved earnings but mixed result Markets For personal use only Thailand – coup led to depressed local market conditions, Sales revenue up 32% to A$1,387M as leading to more exports. greenfield plants start to produce and China – very competitive market wit
Slide 23: Coated and Building Products Asia – Established Asian business
Coated and Building Products Asia – Established Asian business performance continues to improve – absence of Chinese coating margins is an issue For personal use only ASIAN EBIT Contribution by country in FY 2007 100 90 Established Asia Businesses $77m include: 80 - Thailand 70 - Malaysia 60 - Indon
Slide 24: Coated and Building Products Asia – excellent growth and outstanding operations
Coated and Building Products Asia – excellent growth and outstanding operations performance but mixed EBIT outcomes Established Businesses Start-up Businesses For personal use only Thailand - “coup stalls strong recovery” Vietnam – “overcoming challenges” ― Political uncertainty continues wi
Slide 25: Compound Annual Growth Rates / Global Steel Industry
Compound Annual Growth Rates 1,400 For personal use only 6.8% 1,200 1,000 0.9% 800 3.1% China: 20.9% World Ex- 600 China: 2.5% USSR: -2.0% (2000-2007) World Ex - 6.0% USSR: 1.4% 400 (1980-2000) Japan: 6.9% World Ex-Japan: 200 1.8% (1965-1980) 0 1950 1960 1970 1980 1990 2000 2010 Global Steel Industr
Slide 26: Global steel industry – our long term view has not changed
Global steel industry – our long term view has not changed For personal use only CHINA REST OF WORLD Raw material, energy and internal transport costs Global economic growth remains strong reducing relative competitiveness of China Japan – record steel production likely in 2007 Steel reform
Slide 27: Global steel industry consolidation increases pace
Global steel industry consolidation increases pace Most companies shown announced intention to acquire or formed alliances For personal use only What will happen next? 120 100,000 Europe 90,000 / Americas Crude Steel Production (MT) 100 Europe / Asia Revenue (US$m) 80,000 70,000 Asia 80 60,000 Austr
Slide 28: China has driven production growth since 2000
China has driven production growth since 2000 For personal use only Crude steel production, 1950 - 2007 (Compound Annual Growth Rates, %) 1,400 6.8% 1,200 1,000 0.9% Million Tonnes 800 3.1% China: 20.9% World Ex- 600 China: 2.5% USSR: -2.0% (2000-2007) World Ex - 6.0% USSR: 1.4% 400 (1980-2000) Japa
Slide 29: Smorgon Steel Distribution Acquisition
For personal use only Smorgon Steel Distribution Acquisition Page 29
Slide 30: Acquisition of Smorgon Steel's distribution business
Acquisition of Smorgon Steel’s distribution business Transaction details: For personal use only 1. BlueScope has formally acquired Smorgon’s metal distribution business (SSD) for A$700million with effect from 3 August 2007. Net Cost $610M 2. OneSteel has acquired all Smorgon Steel shares on issue
Slide 31: Overview of Smorgon Steel's distribution business
Overview of Smorgon Steel’s distribution business For personal use only Australia’s second largest distributor of steel and metal products (flat and long) Smorgon Steel Distribution has: ¾ LTIFR performance of 3.8 (injuries per million hours worked) ¾ In FY 06 sold approximately 850,000 of steel
Slide 32: Acquisition of Smorgon Steel's distribution business – rationale
Acquisition of Smorgon Steel’s distribution business For personal use only Strategic rationale Brings BlueScope closer to its end customers, consistent with our downstream strategy Increases ability to serve customers through a broader combined distribution network and product range including fl
Slide 33: BlueScope Steel's Financial Results
For personal use only BlueScope Steel’s Financial Results Page 33
Slide 34: Earnings performance leveraged to better mix and steel price spreads
Earnings performance leveraged to better mix and steel price spreads. For personal use only A$ Millions FY2003 FY2004 FY2005 FY2006 FY2007 2007-1H 2007-2H (2) Revenue 5,302 5,770 7,964 8,031 8,913 4,520 4,393 EBITDA (1) 881 1,104 1,655 850 1,423 794 629 EBIT (1) – Reported 611 818 1,358 556 1,099 63
Slide 35: Underlying FY2007 BlueScope financial performance
Underlying FY2007 BlueScope financial performance Other unusual and one-off items include: ($AM) For personal use only EBIT NPAT Discontinued Businesses Packaging (9) (7) India 5 Packaging PKSW (exp v domestic) (27) China 5 Taiwan 17 17 1250 FY07 result (53) Other (7) West Sydney 7 Vistawall (
Slide 36: All BlueScope business segments profitable
All BlueScope business segments profitable EBIT variance FY2006 to FY2007 by reporting business segment For personal use only 1200 $213m $1099m 1100 1000 $28m $44m $23m 900 $302m EBIT A$ Millions ($7m) ($45m) 800 ($15m) 700 600 $556m 500 400 Full year June Hot Rolled Coated & Bldg NZ & Pacific Coate
Slide 37: Balance sheet – working capital reductions and lower gearing
Balance sheet – working capital reductions and lower gearing For personal use only improve financial flexibility As at A$ Millions 31 December 2006 30 June 2007 Sales up 11% with total Assets receivables & Cash 58 36 inventory flat Receivables 1,207 1,269 Inventory 1,409 1,271 Other Assets 1,143(1)
Slide 38: Cash – return of strong cash flows
Cash – return of strong cash flows A$ millions 2003 2004 2005 2006 2007 2007-1H 2007-2H Cash from operations 795 1,012 1,671 903 1,364 752 612 For personal use only Working Capital Movement (31) (94) (432) (100) (21) (55) 34 Net operating cash flow 764 918 1,239 803 1,343 697 646 Net investing cash
Slide 39: Major project capital and investment spending profile
Major project capital and investment spending profile Total Est. Actual to Actual For personal use only PROJECTS All in A$million Capex / Cost 30/6/06 FY2007 FY2008 FY2009 FY2010 Projects completed Thailand – Coating expansion 80 80 - - - - Vietnam – Coating / Painting 136 136 - - - - China - Coatin
Slide 40: EBIT remains sensitive to realised hot rolled coil prices and raw material costs
EBIT remains sensitive to realised hot rolled coil prices and raw For personal use only material costs Estimated impact on forecast EBIT (A$mil) Assumption Full Year Full Year (current) (previous) +/– US$25 / tonne movement in BlueScope’s average realised export 85 86 HRC price (1) +/– 1¢ movement i
Slide 41: Transitioning to MD & CEO of BlueScope
Transitioning to MD & CEO of BlueScope For personal use only Announced as Kirby’s successor August 6, 2007 To take effect 1 November 2007 My intention is to provide investors with a detailed review of my ¾ new management structure ¾ approach to doing business, and ¾ any strategy revisions on o
Slide 42: In summary - a year of great achievements
For personal use only In summary - a year of great achievements Page 42
Slide 43: July 2002 – August 2007 – Oh what a journey
July 2002 – August 2007 – “Oh what a journey” For personal use only Profitable Profitable Dynamic Dynamic Through Throughthe the Global GlobalSteel Steel Cycle Cycle Market Market Strong StrongBoard Board&& Value ValueAdded Added Management Management Branded Branded Team Team Products Products Grow
Slide 44: Taking care of our employees
Taking care of our employees One of my most pleasing outcomes since becoming President of BHP Steel in March 2000, has been our For personal use only focus and improvements in our safety performance: Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate 8 25 Medically treated injur
Slide 45: Taking care of our shareholders
Taking care of our shareholders For personal use only BlueScope’s total return to shareholders vs ASX 100 over 5 years since listing. 15/7/2002 – 16/7/2007 600 500 400 INDEX 300 200 100 0 15/ 07/ 02 15/ 12/ 02 15/ 05/ 03 15/ 10/ 03 15/ 03/ 04 15/ 08/ 04 15/ 01/ 05 15/ 06/ 05 15/ 11/ 05 15/ 04/ 06 15
Slide 46: From the Triangle to the Trapezoid
From the “Triangle” to the “Trapezoid” For personal use only FY2007 FY2003 +270% A$2,064M Downstream A$557M +42% A$3,751M Midstream A$2,649 +46% Upstream A$4,805M A$3,291 Less internal / (A$1,225M) (A$1,760M) other +68% Total revenue A$5,272M A$8, 860M Page 46
Slide 47: Global group sales revenue mix
Global group sales revenue mix – mid and downstream sales revenue growth powering ahead For personal use only FY2003 FY2005 FY2007 A$2,064M 12.5% A$1,835M 229.4% A$3,751M 21.9% Downstream A$557M A$3,078M 16.2% Midstream A$2,649M 5.9% A$4,805M A$4,539M 37.9% Upstream A$3,291M Less internal / other (A
Slide 48: Historical revenue and EBITDA growth by stream since listing
Historical revenue and EBITDA growth by stream since listing For personal use only A$ Millions FY03 FY05 FY07 Growth 2003 - 2007 Sales Revenue Upstream 3,291 4,539 4,805 + 46% Midstream 2,649 3,078 3,751 + 42% Downstream 557 1,835 2,064 + 270% Other / Eliminations (1,225) (1,511) (1,760) Total 5,272
Slide 49: Strategy of focus on construction has offset manufacturing contraction
Strategy of focus on construction has offset the contraction in manufacturing in Australia over the last 5 years Sales Tonnes For personal use only FY2003 Construction FY2007 3,000 3,000 46% 59% 2,500 Non-dwelling 22% 2,500 Non-dwelling 25% Despatches ‘000 tonnes 2,000 2,000 Dwelling 18% Dwelling 22
Slide 50: From a promising start in 2002 to a dynamic future in 2007
From a promising start in 2002 to a dynamic future in 2007 For personal use only • SHAREHOLDERS • CUSTOMERS • COMMUNITIES • EMPLOYEES Page 50
Slide 51: Questions & Answers
For personal use only Questions & Answers Page 51
Slide 52: FY2007 Results Presentation
For personal use only FY2007 Results Presentation Period Ended 30 June 2007 Kirby Adams, Managing Director and Chief Executive Officer Paul O’Malley, Chief Financial Officer 30 June 2007 ASX Code: BSL
Slide 53: Supporting Information
For personal use only Supporting Information Page 53
Slide 54: Reporting business segments
Reporting business segments Corporate / Group For personal use only Australia New Zealand Asia North America Hot Rolled Coated & New Zealand & Coated & Hot Rolled Coated & Products Building Pacific Islands Building Products Building Australia Products Products Products Asia North America Products Au
Slide 55: Annualised Production Capacities and Approved Growth
Annualised Production Capacities and Approved Growth as at June 2007 For personal use only Asia China 24 Lysaght and MC 250kt PEB Sites Painting 150kt • Coated and Building Products India North America Metal Coating 250kt • North Star BlueScope JV Vietnam Painting 150kt MC 125kt Hot Rolling 1.80mt (
Slide 56: BlueScope Steel China footprint
BlueScope Steel China footprint For personal use only BlueScope Steel in China 1 Metal Coating/Painting Line Facility 4 Lysaght Manufacturing Facilities 2 Butler PEB Manufacturing Facilities 60 Butler/CSC Sales Offices 24 Butler District Offices/Sales Office Page 56
Slide 57: BlueScope Steel North American sites
BlueScope Steel North American sites For personal use only BlueScope Steel in North America 1 Regional Office 4 BlueScope Steel Sales Office 2 Joint Ventures 7 Butler Manufacturing Plants 12 Butler Sales/Engineering Offices Page 57
Slide 58: BlueScope Steel's communities are our homes
BlueScope Steel’s communities are our homes “Our success relies on communities supporting our business and products. For personal use only In turn, we care for the environment, create wealth, respect local values, and encourage involvement. Our strength is in choosing to do what is right.” * Key Com
Slide 59: Water conservation – reducing fresh water consumption
Water conservation – clear focus on further reducing fresh water consumption BlueScope Steel’s total Australian daily fresh water consumption - 40 megalitres per day (ml/day) (FY2006) For personal use only Port Kembla Steelworks (PKSW) Consumption of fresh water – 37 ml/day Innovative waste
Slide 60: A global leader in adding value to hot rolled coil
BlueScope Steel – a global leader in adding value to hot rolled coil VALUE-ADDING CAPABILITY For personal use only 55 Will increase to 55% with (Metal Coating Capacity as % of HRC Capacity) recently announced CAPEX (India & Indonesia) 50 48 47 In addition, leading global positions in: Rollforming
Slide 61: Global steel industry consolidation – announcements over last 12 months
Global steel industry consolidation – announcements over last 12 months July 07 – Gerdau Ameristeel announced its intention to acquire US Steel produce Chaparral Steel for US$4.22 For personal use only billion. – Ternium announced the acquisition of Grupo Imsa, for US$3.2M, had been completed. June
Slide 62: Consolidation continued…
Consolidation continued… For personal use only Nov 06 ― Evraz acquires Oregon Steel for US$2.3bn ― CSN and Esmark in bidding war to acquire Wheeling-Pittsburgh Oct 06 ― Tenaris acquires Maverick (pipe and tube) for US$3.2bn ― Posco and Nippon announce that they will spend more than a total of $900 m
Slide 63: Group EBIT variance FY2007 vs FY2006 – underlying business
BlueScope Steel Group EBIT variance FY 2007 vs FY 2006 – Continuing or underlying business Higher Freight (28) Higher labour costs (23) R&M (12) For personal use only Higher costs in Asia (10) Research costs (12) Impact Western Port fire 36 Asset Sales (4) Favourable production volume
Slide 64: Hot Rolled Products Australia (PKSW) – variance analysis
Hot Rolled Products Australia (PKSW) – variance analysis For personal use only Improved Higher slab & HRC domestic sales 1000 prices $83m Redundancy 900 $46m provision 34 $349m ($54m) 800 ($8m) $34m $759m Freight (30) R&M (18) - EBIT A$ Millions Labour (16) 700 Volume 22 ($140m) ($7m) Other (12) 600
Slide 65: Hot Rolled Products Australia – net annual movements in raw material costs
Hot Rolled Products Australia – net annual movements in total For personal use only PKSW raw material costs -2% +2% +34% +36% -3% FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 S&A Conversion Costs Despatch & Freight Raw Materials Page 65
Slide 66: Hot Rolled Products Australia - product flow
Hot Rolled Products Australia - product flow (Indicative) FY2007 For personal use only Port Kembla Steelworks 5.31mt slab FY2007 (5.28mt slab FY2006) Export Slab (1) C&BP Australia (2) Hot Strip Mill (1) Plate Mill 15% (0.8mt) (Western Port) 54% 9% 22% (27%) (1.4mt) (49%) (8%) (16%) Export HRC C & B
Slide 67: Slab and HRC price benchmarks
Slab and HRC price benchmarks For personal use only Previously recommended the Japan to Korea HRC price as being a reasonable public benchmark for BlueScope’s domestic and Asian HRC sales; and Continue to recommend the following both benchmarks Asian HRC Benchmark Price HRC $700 SBB HRC East Asi
Slide 68: Hot Rolled Products North America – EBIT variance analysis
Hot Rolled Products North America – FY 2007 vs FY 2006 EBIT variance analysis This segment comprises: For personal use only North Star BlueScope Steel (50% interest) Castrip LLC and North American and European sales offices 280 260 240 220 $188m $5m ($13m) EBIT A$ Millions 200 - $180m 180 160
Slide 69: Hot Rolled Products North America – new baghouse installation
Hot Rolled Products North America – new baghouse installation Looking after our employees and environment – the new baghouse has significantly For personal use only improved working conditions. The capital cost is approximately US$40M (100% project) and was completed mid CY 2007. Pre-installation Po
Slide 70: New Zealand and Pacific Islands Products performance variance analysis
New Zealand and Pacific Islands Products performance variance For personal use only analysis FY2007 vs. FY2006 Sales revenue up 3% to A$728M EBIT down 14% to A$90M FY2007 return on net assets (pre-tax) 24% 150 $1m $2m 140 $6m $22m Higher coating metals (22) 130 Coal (1) 120 EBIT A$ Milli
Slide 71: New Zealand Steel (FY2007) product flow
New Zealand Steel (FY2007) product flow* Mine Sites Iron Sand Concentrate * Indicative annual prime For personal use only production and sales (t) 2.0mt Export Export New Zealand Steel Iron Sand Vanadium Slag 0.6mt Slab Concentrate 15 kt 0.6mt Hot Rolled 0.8mt Export Hot Rolled Cold Strip Mill Domes
Slide 72: Coated and Building Products Australia – variance analysis
Coated and Building Products Australia – variance analysis For personal use only FY2007 vs FY2006 EBIT variance analysis (excluding the packaging business, which is reported as a Discontinued Business). 250 $23m 200 $22m EBIT A$ Millions $74m 150 ($40m) ($12m) Steel Feed costs (35) $110m Coati
Slide 73: Coated and Building Products Australia – domestic building market
Coated and Building Products Australia – domestic building market For personal use only remains strong Building Markets Record building market full-year volumes for BlueScope. Record volumes achieved in COLORBOND® Steel’s 40th Anniversary year. TRUECORE® (steel framing) sales growing rapidly
Slide 74: Water – BlueScope is part of the solution
Water – BlueScope is part of the solution For personal use only Tank a day is a $1 million BlueScope initiative to help school children help our environment BlueScope Water continues to grow rapidly with a focus on water storage and management solutions for households through to industrial consu
Slide 75: New building solution – Lysaght Quickform product
New building solution – Lysaght Quickform product For personal use only Quickform Building Homebush, Sydney Benefits: Full load bearing fire and sound rated walls for multi-tenancy applications Light weight (minimum labour requirements) Fast and easy to install Page 75
Slide 76: Our customers are our partners
Our customers are our partners For personal use only Our Market Offer High quality products XLERPLATE® Advertising / promotional support Service Delivery Satisfaction Warranty Technical Support Creating New products TUBEFORM® New markets Page 76
Slide 77: Another building solution – Lysaght Bondek
Another building solution – Lysaght Bondek® For personal use only Page 77
Slide 78: Value-added solutions
Value-added solutions For personal use only NEETASCREEN Plus Fence AQUAPLATE® Graffiti Remover Page 78
Slide 79: Smorgon distribution business – product flows
Smorgon distribution business – product flows In FY 2006, Smorgon Steel Distribution supplied over 850,000 tonnes of product, as follows: For personal use only 380kt 260kt 150kt 70kt Roll forming Roll forming Source: Smorgon Steel Page 79
Slide 80: Smorgon distribution business – national outlets
Smorgon distribution business – national outlets (FY2006) For personal use only BlueScope Steel has now strengthened its channels to the Australian market, in addition to it’s: ¾ Lysaght ¾ Service Centre ¾Water businesses. Source: Smorgon Steel Total: 92 Page 80
Slide 81: BlueScope Steel reaches agreement with OneSteel and Smorgon Steel
BlueScope Steel reaches agreement with OneSteel and Smorgon Steel For personal use only Total Purchase Price $700m Current Value of 19.9% stake in SSX1 ($447m) Additional cash to be paid to Smorgon Steel $253m Original investment (19.9% of Smorgon Steel) $319m Pre - tax cash outlay $572m Estimated t
Slide 82: Coated and Building Products Asia – variance analysis
Coated and Building Products Asia – variance analysis For personal use only FY2007 vs. FY2006 Sales revenue up 32% to A$1,387m EBIT up 121% to $42m FY2007 annualised return on net assets (pre-tax) 3% EBIT variance analysis 130 120 $12m 110 $44m 100 ($7m) EBIT A$ Millions 90 ($10m) Deprec
Slide 83: Indonesian coated expansion
Indonesian coated expansion For personal use only May 2007 – announced intention to recommence its brownfield coating expansion in Indonesia. Cost US$113m (inc US$12m already spent) Expansion: ¾ construction of a second metallic coating line, with in-line painting at its Cilegon operation (100
Slide 84: Indonesia – metal roofing sheets
Indonesia – metal roofing sheets For personal use only Our largest customer in Indonesia, PT Tatalogam Lestari, produces metal roofing sheets from our 0.2mm product. Source: PT Tatalogam Lestari Page 84
Slide 85: Our Asian capacity to improve twofold by FY2009
Our Asian Coating / Painting / Roll-forming / PEB capacity to For personal use only improve twofold by FY2009 BY REGION 1100 990 1000 900 800 X2 (k tonnes) 700 600 490 500 420 400 X 2.4 300 175 200 100 0 FY2006 FY2007 FY2008 FY2009 Metal coating Painting Page 85
Slide 86: Indicative FY2007 Zinc and Aluminium usage
Indicative FY2007 Zinc and Aluminium usage (vs. FY2006) Tonnes Zinc Aluminium For personal use only FY2007 FY2006 FY2007 FY2006 AUSTRALIA Springhill 22,787 21,250 10,632 10,000 Western Port 21,800 17,500 10,900 9,500 Sub-total 44,587 38,750 21,532 19,500 NEW ZEALAND 6,700 6,500 3,400 3,500 NORTH AME
Slide 87: Coated and Building Products North America – variance analysis
Coated and Building Products North America – variance analysis Comprises: For personal use only Butler buildings Vistawall business was sold on 29 June 2007 and therefore not included in this analysis. FY2007 vs. FY2006 EBIT variance 60 50 $19m ($2m) EBIT A$ Millions 40 $37m ($2m) ($2m) 30 $
Slide 88: Calendar year earnings
Calendar year earnings For personal use only A$ Millions CY2003 CY2004(2) CY2005 CY2006 Revenue 5,328 7,029 7,980 8,693 EBITDA(1) 857 1,501 1,411 1,052 EBIT(1) - reported 581 1,212 1,111 742 - operational - - 1,308 966 Net profit - reported 436 859 792 413 - operational - - 943 586 EPS (¢) 56 116 11
Slide 89: From the Triangle to the Trapezoid – growth projects
From the Triangle to the Trapezoid For personal use only GROWTH PROJECTS Revenue increased FY 2003 vs. FY 2007 Major projects completed to 30 June 2007 To be completed FY2008 – FY2009 Asia India - PEB and Lysaght Thailand – PEB facility Downstream facilities at Pune China – Guangzhou +270% I
Slide 90: FY2007 Results Presentation
For personal use only FY2007 Results Presentation Period Ended 30 June 2007 Kirby Adams, Managing Director and Chief Executive Officer Paul O’Malley, Chief Financial Officer Business Presidents 20 August 2007 ASX Code: BSL