Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Credit Suisse Basic Materials Conference 2020
22 slides from Bluescope Steel's conference presentation, Sep 16, 2020
Slide 1: Credit Suisse Basic Materials Conference Presentation
For personal use only CREDIT SUISSE BASIC MATERIALS CONFERENCE PRESENTATION Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 16 September 2020 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058 Level 11, 120 Colins St, Melbourne, VIC, 3000
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 For personal use only FINANCIAL ADVICE.
Slide 3: Leader in coated and painted steel products for Asia-Pacific building markets, with best-in-class US mini-mill
LEADER IN COATED AND PAINTED STEEL PRODUCTS FOR ASIA-PACIFIC BUILDING 3 MARKETS, WITH BEST-IN-CLASS US MINI-MILL Returns focussed disciplines with a strong balance sheet; well positioned for post-COVID growth For personal use only CAPITAL DISCIPLINE POSITIONED FOR ASSETS & CAPABILITY AND RETURNS FOC
Slide 4: Premium branded differentiated products, including iconic COLORBOND steel
PREMIUM BRANDED DIFFERENTIATED PRODUCTS, INCLUDING ICONIC 4 COLORBOND® STEEL Extensive capability in product design, differentiation, branding and channel development For personal use only Australia New Zealand Asia North America ® ® ® ® ® ® ®
Slide 5: A wide range of world class metallic coated and painted products
A WIDE RANGE OF WORLD CLASS METALLIC COATED AND PAINTED PRODUCTS 5 Aesthetically appealing products, providing extreme durability whilst also offering superior design flexibility For personal use only
Slide 6: A diversified steel building products company
A DIVERSIFIED STEEL BUILDING PRODUCTS COMPANY 6 Generating geographically diverse earnings and increasing contribution from value-added products For personal use only Underlying EBITDA by region ($M) BlueScope despatch volume mix 100% Buildings North America NZ & Pacific $51M 90% 4% Building product
Slide 7: Creating Strength
CREATING STRENGTH 7 OUR PURPOSE For personal use only We create and inspire smart solutions in steel, to strengthen our communities for the future. OUR STRATEGY TRANSFORM GROW DELIVER DELIVER A STEP CHANGE IN CUSTOMER GROW OUR PORTFOLIO OF SUSTAINABLE DELIVER A SAFE WORKPLACE, AN ADAPTABLE EXPERIENC
Slide 8: Financial framework underpinning resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE 8 Maintaining commitment to a strong balance sheet and disciplined capital allocation For personal use only RETURNS OPTIMAL CAPITAL DISCIPLINED 1 FOCUS 2 STRUCTURE 3 CAPITAL ALLOCATION ROIC > WACC on average through the cycle Strong balance sheet, with a t
Slide 9: FY2020 financial performance
FY2020 FINANCIAL PERFORMANCE 9 Robust performance in FY2020, despite cyclically lower spreads and COVID-19 impacts For personal use only UNDERLYING EBIT (A$M) ROIC1 FREE CASH FLOW2 1,348 20.0% 19.5% 1,304 1,269 18.5% 1,105 749 731 564 7.6% 238 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2
Slide 10: Results show strength of business model and financial disciplines
RESULTS SHOW STRENGTH OF BUSINESS MODEL AND FINANCIAL DISCIPLINES 10 Quality of portfolio and resilience of business model demonstrated; well positioned to deliver long term shareholder value For personal use only • Comprehensive health measures adopted in all operating locations, leveraging strong
Slide 11: Positioned for post-COVID trends
POSITIONED FOR POST-COVID TRENDS 11 BlueScope is well positioned to address likely post-COVID societal trends For personal use only Localisation of supply chains BlueScope’s focus is to serve domestic markets Rise in home improvements and BlueScope is a leading residential building products supplier
Slide 12: Australian Steel Products (ASP)
AUSTRALIAN STEEL PRODUCTS (ASP) 12 An integrated and resilient business that delivers returns across the cycle For personal use only Segment overview ASP Underlying EBIT (A$M) An iconic industrial brand position with COLORBOND® steel 587 535 Maintaining extensive channels to market 459 Lower earning
Slide 13: Australian Steel Products – end market indicators
AUSTRALIAN STEEL PRODUCTS – END MARKET INDICATORS 13 Current activity levels remain resilient across the building and construction markets to which BlueScope is exposed For personal use only Domestic despatch mix (kt) Long-term dwelling approvals1 (‘000 units) Alterations and additions approvals2 (A
Slide 14: North Star – an advantaged best-in-class asset
NORTH STAR – AN ADVANTAGED ‘BEST-IN-CLASS’ ASSET 14 Strong EBITDA and cash generation through the cycle; industry leading margins and utilisation For personal use only US$M EBITDA and spread (100% basis)1 EBIT margins3 (%) 11.1% 600 U.S. mini-mill spread 9.8% Moved to 100% 524 EBITDA (100% basis) ow
Slide 15: North Star expansion progressing well – investing in quality growth
NORTH STAR EXPANSION PROGRESSING WELL – INVESTING IN QUALITY GROWTH 15 Significant project for BlueScope; remains on-budget and set for commissioning during the June 2022 half year For personal use only • With a strong balance sheet, executing this highly value-accretive project remains a priority •
Slide 16: Building Products Asia and North America
BUILDING PRODUCTS ASIA AND NORTH AMERICA 16 An outstanding suite of assets in high growth regions with world leading JV partners For personal use only Building Products Asia and North America NS BlueScope Coated Products (50%) Tata BlueScope Steel (50%) BlueScope China A BlueScope controlled, and th
Slide 17: Robust balance sheet, delivering returns to shareholders
ROBUST BALANCE SHEET, DELIVERING RETURNS TO SHAREHOLDERS 17 Flexible and resilient balance sheet with investment grade rating; strong track record of shareholder returns ($1.47Bn since 2017) For personal use only Net debt / (cash)1 ($M) Dividends paid and buy-backs2 ($M) 15.1% 15.2% 1,373 Dividend N
Slide 18: Addressing climate change
ADDRESSING CLIMATE CHANGE 18 Seeking to reduce our impact on shared resources and mitigating climate risks by leveraging opportunities and breakthrough technologies For personal use only FY2020 PROGRESS FUTURE FOCUS • Climate strategy elevated within corporate • Refreshing our climate scenario analy
Slide 19: Sustainability – a core value
SUSTAINABILITY – A CORE VALUE 19 BlueScope continues to focus on building resilience, embedding sustainability in all that we do For personal use only SAFETY, HEALTH AND WELLNESS SUPPLY CHAIN SUSTAINABILITY INCLUSION & DIVERSITY • Focus in 2H FY2020 centred around the • On track to complete the targ
Slide 20: Leader in coated and painted steel products for Asia-Pacific building markets, with best-in-class US mini-mill
LEADER IN COATED AND PAINTED STEEL PRODUCTS FOR ASIA-PACIFIC BUILDING 20 MARKETS, WITH BEST-IN-CLASS US MINI-MILL Returns focussed disciplines with a strong balance sheet; well positioned for post-COVID growth For personal use only CAPITAL DISCIPLINE POSITIONED FOR ASSETS & CAPABILITY AND RETURNS FO
Slide 21: Questions?
For personal use only QUESTIONS?
Slide 22: Credit Suisse Basic Materials Conference Presentation
For personal use only CREDIT SUISSE BASIC MATERIALS CONFERENCE PRESENTATION Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 16 September 2020 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058 Level 11, 120 Colins St, Melbourne, VIC, 3000
BlueScope Steel — Credit Suisse Basic Materials Conference 2020 on 6ix