Bisalloy Steel Group Ltd · ASX:BIS
Bisalloy Steel — FY2012 Earnings Presentation
21 slides from Bisalloy Steel's earnings presentation, Sep 4, 2012
Slide 1: Investor Presentation on 2012 Full Year Results
For personal use only 4 September 2012 ASX Market Announcements Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000 Investor Presentation on 2012 Full Year Results Attached please find an investor presentation being issued in respect of the June 2012 full year results for Bis
Slide 2: Investor Presentation September 2012
For personal use only Investor Presentation September 2012
Slide 3: Who we are
Who we are For personal use only • Australia’s only manufacturer of high-strength structural, wear-resistant quenched and tempered (“Q&T”) steel plate. Listed on ASX (“BIS”). • ‘Bisplate’ Q&T brand has strong market recognition in Australia and many parts of Asia. • Strong regional presence across A
Slide 4: Investment Highlights
Investment Highlights For personal use only • Strong FY2012 results – Revenue up 33% EBITDA up 58% NPAT up 129% EPS up 158% Debt reduction ongoing – net debt reduced to $11.1m (down ~65% from FY2010 ). Gearing ratio of 36% • Strong earnings growth expected in FY2013 • Proposed reintroducti
Slide 5: 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 6: 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. Operated at ~ 70% capacity in FY2012. Raw material, in the form of steel plate (i.e. “greenfeed”), sourced from multiple steel mills domestically and
Slide 7: Bisplate process
Bisplate process For personal use only Page 6
Slide 8: Our products
Our products For personal use only Twin rail ore hoppers made from (Bisplate®) Q&T Page 7
Slide 9: Q&T through life value proposition
Q&T through life value proposition For personal use only DESIGN READINESS:- • Consultative approach to Q&T cross Mining, Construction/ Structural SUPPLY READINESS:- & Armour/Defence • Bisplate stocked by applications local Regional • Field-proven designs. BISPLATE® • Bisplate Q&T now Distributors in
Slide 10: Q&T in mining "pit to port" applications
Q&T in mining “pit to port” applications For personal use only Surge Bins: BIS400 & BIS450 Truck Trays: BIS400 & BIS450 Liners Kits: BIS400, BIS450 & BIS500 Feeders: BIS400 & BIS450 Bucket wheel: BIS400 & BIS450 Structural: BIS80, BIS450 Dog bones: BIS80 Bucket Cheeks: BIS 80 & BIS400 Yard Equipment
Slide 11: Bisalloy-Jigang CJV
Bisalloy-Jigang CJV For personal use only July 2011, Bisalloy enters a 50:50 Cooperative Joint venture with Jinan Iron & Steel Co. Ltd, a subsidiary of the Shandong Iron & Steel Group which is one of China’s top 10 steel producers. Bisalloy to contribute US$1 million in capital and licence its Q
Slide 12: Bisalloy-Jigang CJV process
Bisalloy-Jigang CJV process For personal use only Jinan Iron & Steel Bisalloy Jigang JV technology transfer Shot Hardening Quench Tempering Warehouse / blasting furnace Furnace Despatch Jinan Plate Mill Green Feed to Bisalloy’s Bisplate Q&T chemistry Q&T processed to Bisplate quality standards Jinan
Slide 13: 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). • Simple variable cost structure (freight, energy, overtime). • Modest fixed cost base. Circa 80 full-time employees. • Mov
Slide 14: Significant improvements between FY10 and FY12
Significant improvements between FY10 and FY12 For personal use only 1. Market share: implement stock holding strategy to significantly improve lead time to customers increase sales & marketing resources to improve market intelligence and build customer relationships – defined core markets & str
Slide 15: Significant improvements between FY10 and FY12 (cont)
Significant improvements between FY10 and FY12 (cont) For personal use only 3. Substantial strengthening of access to Asian markets : entered co-operative joint venture with Jigang Iron & Steel investment of US$1m and licensing of our IP – 50:50 share of profits local supply of Bisplate for ‘n
Slide 16: Overall Group Impact
Overall Group Impact For personal use only Annual sales increased from 31,700t in FY2010 to 45,000t in FY2012 (42% improvement) NPAT increased from ~$400k in FY2010 to ~$6.8m in FY2012 Balance sheet risk reduced – gearing falling from 60% to 36% - supported renewal of finance facility through
Slide 17: Financial performance
Financial performance For personal use only FY10 FY11 FY12 FY11 to FY12 % Change Revenue $m 87.7 78.3 104.0 33% EBITDA (before CJV) $m 5.3 7.7 12.1 58% NPAT $m 0.4 3.0 6.8 129% EPS (diluted) cps 0.0 5.5 14.2 158% Operating cash flow* $m 14.0 3.3 6.7 103% Return on Equity % 4.0% 22.0% 36.9% 68% * FY1
Slide 18: Balance sheet performance
Balance sheet performance For personal use only June-10 June-11 June-12 Total equity $m 11.9 15.3 21.8 Net debt (debt less cash) $m 16.7 15.2 11.1 Gearing ( total debt/total debt + % 60% 51% 36% equity) Working Capital (excl cash & $m 15.0 14.0 15.0 debt) Bank Facilities (secured) $m 32.0 31.0 25.0
Slide 19: Corporate
Corporate For personal use only Share price (52 week range): Substantial Shareholders $1.40 . $0.50 to $1.70 Anchorage and Mr. P Cave 19.32% Balron Nominees & Associates 18.18% Shares on issue (post 1:5 consolidation) RBC Dexia Investor Services 13.93% 43,291,509 Prospect Custodian Ltd 7.55% Market
Slide 20: 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 21: 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 20