Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Corporate Update (December 2018)
40 slides from Bluescope Steel's corporate update, Dec 3, 2018
Slide 1: Investors' Visit to ASEAN Sites - Pack 2: NS BlueScope Thailand
INVESTORS’ VISIT TO ASEAN SITES PACK 2: NS BLUESCOPE THAILAND Somkiat Pintatham Country President, NS BlueScope Thailand December 2018 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058
Slide 2: Agenda
AGENDA 2 1 NS BlueScope Thailand Overview 2 Macroeconomic, Industry & Construction Overview 3 Thailand Coated Steel Market Overview 4 Segments, Products, Brands & Channels 5 Financial Performance & Strategy 6 Sustainability
Slide 3: NS BlueScope Thailand Overview
NS BLUESCOPE THAILAND OVERVIEW
Slide 4: Safety
SAFETY 4 Progress towards our goal of Zero Harm LTIFR BlueScope FY18 LTIFR: 0.62 Lost time injuries per million hours worked 0.0 0.0 0.0 0.0 FY2015 FY2016 FY2017 FY2018 BlueScope FY18 MTIFR: 5.4 MTIFR Medically treated injuries per million hours worked 0.4 0.4 0.6 0.8 FY2015 FY2016 FY2017 FY2018 Not
Slide 5: Business Structure
BUSINESS STRUCTURE 5 This presentation will focus on the Thailand business within the NS BlueScope JV BlueScope NSSMC 1 50% 50% NS BlueScope Coated Products (NBCP) A BlueScope controlled, and therefore consolidated, joint venture Thailand Indonesia Malaysia Vietnam North America (80%) 2 (100%) (100%
Slide 6: Management Team
MANAGEMENT TEAM 6 Somkiat Pintatham Country President Thailand Chris Mcloughlin Gil Amilbangsa President Lysaght President Lysaght Thailand Myanmar Vorapol Charan Steven Yosuke Suzuki Panu Tatirat Paisan Maneenuch Teerapong Chanigarn Korrakod Angsulapivat Suantai O’ Connor VP Home VP Retail Korsanga
Slide 7: Thailand Footprint
THAILAND FOOTPRINT 7 Key domestic coated producer with strong local brands and standards • Established in 1988 Khon Kaen • Leading position in Project and Retail segments • Expansion into new Home Appliance segment with SuperDyma® • Three manufacturing facilities: − CRC mill (350ktpa), metallic coat
Slide 8: New Coating Line at Map Ta Phut
NEW COATING LINE AT MAP TA PHUT 8 New 150kt metal coating line at Thailand’s Map Ta Phut facility, the most advanced in BlueScope’s footprint • 150ktpa metal coating line with in-line painting technology • Project status • Designed to focus on production of lighter gauge coated and painted products
Slide 9: Macroeconomic, Industry & Construction Overview
MACROECONOMIC, INDUSTRY & CONSTRUCTION OVERVIEW
Slide 10: GDP Growth
GDP GROWTH 10 GDP growth forecast to continue due to growing external demand and increased private consumption GDP expenditure by segment (billion THB, real – base year 1988) Forecast +4% 12,302 11,856 11,429 +3% 10,638 11,017 9,823 10,207 9,142 9,232 9,511 8,903 51% 8,302 51% 8,232 51% 51% 51% 51%
Slide 11: Construction Sector Performance
CONSTRUCTION SECTOR PERFORMANCE 11 Construction activity recovering, with improving dwelling investment stimulating demand in the retail segment Private construction investment breakdown (billion THB, current) Private construction investment breakdown movement (%) 2% 6% 0.20 0.20 0.20 0.20 0.22 7% 1
Slide 12: Construction Sector Outlook
CONSTRUCTION SECTOR OUTLOOK 12 The outlook for Thailand’s construction sector is favourable • Thailand’s construction sector is expected to improve following recent Construction work done (US$Bn, current) Forecast 70 stagnation in 2018, driven largely by the civil sector • According to BIS Oxford Ec
Slide 13: The Eastern Economic Corridor (EEC) Project
THE EASTERN ECONOMIC CORRIDOR (EEC) PROJECT 13 The EEC is a key project driving growth in Thailand, with investment totalling US$50Bn in the first five years EEC Project Investment (US$Bn) Investment geography Investment likely to be triggered following upcoming elections, and is focused in and arou
Slide 14: Thailand Coated Steel Market Overview
THAILAND COATED STEEL MARKET OVERVIEW
Slide 15: Coated Steel Products Market Structure
COATED STEEL PRODUCTS MARKET STRUCTURE 15 Competition largely from imports, with most domestic competitors producing galvanised products Painted Zinc-Aluminium Galvanised Bangkok Steel Domestic Bangkok Steel POSCO Producers Yodoko Bangkok Steel (~20%) Sangasi Thai Thai Dongbu Sangasi Fareast China C
Slide 16: Construction Market Structure
CONSTRUCTION MARKET STRUCTURE 16 The construction market is weighted towards coated roof and wall products in the retail sub-segment Product split (%) Projects & Sub-segment split (%) infrastructure Zinc-Aluminium 405kt 33% Galvanised Painted 29% Galvanised 1,228kt 48% 34% 67% 37% Retail 823kt 1,228
Slide 17: Coated Products Value Chain
COATED PRODUCTS VALUE CHAIN 17 We serve three key segments through multiple channels Suppliers Processors & users Applications of the products (eg NS BlueScope) Processors/ MANUFACTURING SEGMENT component mfg. Industrial manufacturing Metal coated Painted Such as automotive, home appliances, GI, GL
Slide 18: Supply of Steel Feed
SUPPLY OF STEEL FEED 18 Strong focus on ensuring operations are supplied with quality and competitively priced steel feed • ~360ktpa of hot rolled coil, predominantly supplied by BlueScope from Australia and NSSMC from Japan • Additional requirements from other local and import suppliers Steel feed
Slide 19: Segments, Products, Brands & Channels
SEGMENTS, PRODUCTS, BRANDS & CHANNELS
Slide 20: Value Proposition
VALUE PROPOSITION 20 Leading domestic value proposition in key segments predicated on innovation, channels, loyalty and brand Product / As a market leader, our customers expect us to innovate and Service develop new products / services Innovation Owning a channel to market is critical in a globally
Slide 21: Segments
SEGMENTS 21 NS BlueScope Thailand is focused on three key segments PROJECTS RETAIL HOME APPLIANCE Industrial & Commercial / Government SME & Residential Refrigerator & Air Conditioning • Products: COLORBOND® & ZINCALUME® • Products: ZACS® & Jing Joe® • Products: SuperDyma® & ViewKote® steel • Key di
Slide 22: Brands and Channels
BRANDS AND CHANNELS 22 A portfolio of diverse brands, specifically tailored for each channel Painted Metallic Coated Projects Retail ® ® ® ® Home Appliance Manufacturing
Slide 23: Lysaght Products Brands and Channels
LYSAGHT PRODUCTS BRANDS AND CHANNELS 23 A wide range of products and brands to suite end markets across the building and construction sector Lysaght Roof & Wall 360 SEAM™ Acoustic Roofing System Industrial & Commercial Residential Agrished™ Industrial & Commercial Industrial & Commercial Smartruss®
Slide 24: Financial Performance & Strategy
FINANCIAL PERFORMANCE & STRATEGY
Slide 25: Financial Performance
FINANCIAL PERFORMANCE 25 Margin pressure from increased feed costs and higher import levels resulted in a lower EBIT in FY2018 Volume (Kt) Commentary on FY2018 performance: 367 385 377 350 • Margins tightened with incomplete pass-through of rapidly rising regional steel prices; this is typically how
Slide 26: NS BlueScope IGNITE Strategy
NS BLUESCOPE IGNITE STRATEGY 26 Overarching business strategy focussing on three key themes
Slide 27: Strategic Frameworks: Projects
STRATEGIC FRAMEWORKS: PROJECTS 27 Focus on engaging through the channel to improve specifier network and further strengthening brands STRATEGIC FOCUS Channel Product & service Brand 1 2 3 Develop and enhance clear Enhance brand premium and Build strong and deep BlueScope value proposition for leader
Slide 28: Strategic Initiatives: Projects
STRATEGIC INITIATIVES: PROJECTS 28 Launch of a new colour palette for COLORBOND® steel to refresh the brand identity
Slide 29: Strategic Initiatives: Channel
STRATEGIC INITIATIVES: CHANNEL 29 Development of customised small scale pre-engineered buildings and sheds through Ranbuild • National Dealer network across Thailand • Professional product consultants with fast design solutions • Fast construction offer: survey and site preparation within 1.5 months
Slide 30: Strategic Frameworks: Retail
STRATEGIC FRAMEWORKS: RETAIL 30 Focus on developing the channel, deepening customer relationships and enhancing brand position STRATEGIC FOCUS Channel Customer relationship Brand 1 2 3 Develop and enhance clear Enhance brand premium Successfully operate a multi- BlueScope value proposition for toget
Slide 31: Strategic Initiatives: Retail Roll Out
STRATEGIC INITIATIVES: RETAIL ROLL OUT 31 Accelerated roll out of branded network and engagement with channel to grow share, premium and volume Description Partners BlueScope branded point of sale (with rollforming capability), offering full range of BlueScope products 53 Strategic channel partners
Slide 32: Strategic Frameworks: Home Appliance
STRATEGIC FRAMEWORKS: HOME APPLIANCE 32 Focus on achieving quality standards and developing brand value of key products STRATEGIC FOCUS Channel Brand Product & service 1 2 3 Develop deep relationships Establish clear value Enhance ViewKote® and Achieve quality standard of with key Japanese home prop
Slide 33: Strategic Initiatives: Innovation
STRATEGIC INITIATIVES: INNOVATION 33 Bringing innovation to the high end residential market through new architectural residential solutions • Leveraging success in other, more mature, markets (including Australia and New Zealand) • Examples include: - 360 Seam profile - Solar cell partnership
Slide 34: Sustainability
SUSTAINABILITY yw " =
Slide 35: People, Capability & Culture
PEOPLE, CAPABILITY & CULTURE ✓ SUSTAINABILITY ✓ CAPABILITY ORGANISATION ✓ EMPLOYEE ENGAGEMENT
Slide 36: Diversity & Inclusion
DIVERSITY & INCLUSION 36 A key area of focus for NS BlueScope Thailand Initiatives include International Womens’ Day event, March 2018 • The NS BlueScope Thailand Diversity Council • Introduction of diversity scorecards • Improved female facilities • New operators gathering sessions • Unconscious Bi
Slide 37: Energy Use Reduction
ENERGY USE REDUCTION 37 Many initiatives to reduce energy consumption implemented, improving both emissions and cost performance Energy reduction activities Emissions performance certification 2016 2017 Changed light bulbs from Hi-Bay Changed light bulbs from Hi-Bay HPS 400W to LED 120 W HPS 400W to
Slide 38: Improving Building Skills
IMPROVING BUILDING SKILLS 38 Partnering with peak organisations to improve the quality of building skills in Thailand More than 7,500 fixers over ASEAN have been educated since FY2014, targeting over 2,300 fixers this year • NS BlueScope Thailand have signed a MOU with the Department of Skill Develo
Slide 39: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 39 Engaging in a wide range of activities to ensure we remain valued members of our communities Thai Children’s day with Map Ta Phut schools, January 2018 Khao Lam Merit with Map Ta Phut community, February 2018
Slide 40: Investors' Visit to ASEAN Sites
INVESTORS’ VISIT TO ASEAN SITES PACK 2: NS BLUESCOPE THAILAND Somkiat Pintatham Country President, NS BlueScope Thailand December 2018 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058