Bluescope Steel Limited · ASX:BSL
Bluescope Steel — American Chamber of Commerce in Australia (June 2004)
39 slides from Bluescope Steel's conference presentation, Jun 8, 2004
Slide 1: BlueScope Steel - American Chamber of Commerce in Australia
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Slide 2: We and our customers proudly bring inspiration, strength and colour to communities
We and our customers proudly bring inspiration, strength and colour to communities with BlueScope Steel. Our customers are our partners. Our success depends on our customers and suppliers choosing us. Our strength lies in working closely with them to create value and trust, together with superior pr
Slide 3: Changes in Global Steel Industry
Changes in Global Steel Industry Production Share of Top 3 Steelmakers in each Region (%, 1998 vs 2003) 50% & 2001 EB, inc. Source : POSCO, ‘POSCO Growth & Innovation, Jan 04 3
Slide 4: Global, Flat Products and Long Products price index
—Global —Flat Products »Long Products 140 BHP announces spin-out of BHP BSL public 4 stos! public OneStee! announces listing “SARS” 20 listing OneSteel spin-out of public BHP Steel listing 100 5 80 | 60 -——— mt RERREREEREEE EREEEEE m7 | 1 sf ef a 5 & eff. s ES a © & we oo in| 242334238 pigh288 33423
Slide 5: What is transforming the global steel industry?
What is transforming the global steel industry? Global economic growth - synchronised Global steel demand growth: China, India, Russia, Brazil Supply/Demand gap in China Steel industry structural consolidation & privatisation Input cost inflation & raw material shortages Different pattern for capaci
Slide 6: China is driving the strong growth in global steel demand
China is driving the strong growth i in global steel — ‘demand Global Steel Demand — lISI Base Case (million tonnes) 1,200 Forecast 963 987 1,000 4929- 800 600 400 200 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2010 Source: HSI 6
Slide 7: FY2003 - BlueScope Steel's first year
FY 2003-BlueScope Stee’ fst year BlueScope Steel’s Share Price for First Year Public Listing: 15 July 2002 AS Best ever safety outcomes 3.80 3.60 NPAT of $452m 3.40 EPS of 57.1 cents 3.20 Return on invested capital of 14.5% 3.00 Dividends of 29 cents per share (fully franked) °° 2.60 Cash flow of $5
Slide 8: FY2004 - a second outstanding year for BlueScope Steel
FY2004 - a second outstanding year for BlueScope Steel _ Even better safety & operational performance Expectation of A$550mm NPAT in FY04 - vs A$452m in FY03 Required name change: BlueScope Steel - November 2003 Butler acquisition US$221m before transaction costs Board approved over A$1 billion of g
Slide 9: Safety - Our Goal is Zero Harm
"Safety - Our Goal is Zero Harm Injuries resulting in lost time per million man-hours worked oo New South Wales manufacturing average 24.8% __ 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004- 1H * Includes contractors from 1996 9
Slide 10: Slide 10
Slide 11: BlueScope Steel: A steel solutions company
BlueScope Stee: Astel solutions company Downstream, in-market, branded, value added product strategy Innovations in Australia and Asia Acquisition of Butler Manufacturing Company 11
Slide 12: Slide 12
Slide 13: LAY Ne Wipes iD ates Upcidotscn GU pde
LAY Ne Wipes iD ates Upcidotscn GU pde yen AP” oe ee Le one Pe Ae ay We novative solutions primarily to | yj io ) Pe a ae WO ee ye 4 7 LMI OTM CC ¢ y g i i I =e OE aa YT onan L J 5 y gy EME OLE EE EET ELE ss. g ee ee ¥ ; ineemnis ae ij ie ft SOLS P / i = 5 ee : ow eo OnE
Slide 14: BlueScope Steel Strategy - Downstream, Value-Added
_ BlueScope Steel Strategy - Downstream, Value-Added Pre-Engineered Buildings/Solutions | _ Metallic ; Metallic _ Coa ate J - a VRoled
Slide 15: Steel Cost Curve
= =~ nN _ oo tr oO a @® ce ® = 2. : — 2 _ Ss = oO | Steel Cost Curve (over 65 steel plants globally) Global Hot Rolled Co Port Kembla 1997 - 2002 range == Ss SSS === SS SS $A / tonne SSS @ USA Integrateds USA Compact Strip Production O Compact Strip Production = L 3 =] 3s 2 ie cl = 2 5 £ = QO oO 18
Slide 16: BlueScope Steel is a global leader in adding value to coil
BlueScope Steel is a global leader in adding value to coil VALUE-ADDING CAPABILITY (Metal Coating Capacity as % of HRC Capacity) 2 A similarly strong downstream position in * Painting #2 worldwide Today * Rollforming #4 worldwide + Pre Engineered Buildings § #1 worldwide BlueScope Steel NOTE: Larges
Slide 17: Australia, NZ, Asian and American footprint
Australia, NZ, Asian and American footprint: - Coating / Painting O Roll Forming ® Service Centres @ Butler & Vistawall ® Joint Ventures 17
Slide 18: GEER erseoniaiar ieyaithe SATAN IN SLA
GEER erseoniaiar ieyaithe SATAN IN SLA GO oe >. COr™r™trti“‘“‘“‘“‘“(‘(‘(‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘éw”zéq 0 ll ae Lie oa Ye ee Lo Te A a OT Le Pa Co IE Yr - om Le oF P "i sae Le Lo 7 x y | L TANASE eo y ; MO OM TCT II OTL YO i
Slide 19: Value-added branded innovations in Australia
Value-added branded innovations in Australia 19
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Slide 22: Zincalume steel advertisement
ye wy a . ZB Sie ae NAO RAITT: 2 The problem with using unknown roofing ané adding is just that. the unknown, Who knows iFitiiast as tong as 2INCALUME® steat, made only &y BlueScape Steet? Who knows itis backed by awarranty of up 29 2 years?” Who knows if the company oo 5s ® eis see ee q Veil hie, i
Slide 23: Value-added branded innovations in Australia
Value-added branded innovations in Australia Why harvest rainwater? ‘Seat Zeb “pe pot once acti ey sahanseilinga, THE longer stanly téngth and lightweight ‘dosign of HydroRib™® removed the need for ; heavy machinery ow-aite and provided a pre aetowns. ape wicker, loss labour intensive installatio: ;
Slide 24: Value-added branded innovations in Australia
‘Value-added branded innovations in Australia i 7, Te) eee ieee | Ti ET TE 13) | i i Xlerplate BIS 24
Slide 25: We are applying similar principles in Asia
We are applying similar principles in Asia 25
Slide 26: Slide 26
Slide 27: Steel Solutions & Sustainable Urban Development project
liSlis pursuing similar ideas in the Steel Solutions & Sustainable Urban Development. Project Main frame structural steel Lightweight steel frame infill panels Lightweight steel frame stairs Steel frame structure to south fagade for access decks Green Roofs redine peak rainwater discharge Rainwater
Slide 28: Where we have come from...
_ Where we have come from... * Lysaght began Australian distribution in the 1850s. * Steel created a distinctive style of Australian architecture. 28
Slide 29: Butler Manufacturing Company
BLUESCOPE A BlueScope Steel Company STEEL Butler Manufacturing Company - Pre-eminent global designer/supplier of Pre-Engineered Buildings (PEBs) — Number One positions in North America and China - Worldwide brand recognition An Attractive Opportunity at the Right Time 29
Slide 30: Revenue up nearly 20% or approx A$1 billion
Revenue up nearly 20% or approx A$1 billion Downstream Revenue proportion up 7% Employees up 39% Investment Grade Balance Sheet maintained No dilution to Earnings per Share 30
Slide 31: January 2004 vs June 2004 employees by region
January 2004 a . ‘June 2004 SE Asia Other 10% 1% SE Asia 14% China 7% China 4% North America 0.2% we New Zealand 7” 10% SN North America 22% we Australia 52% \ Australia 10% ° New Zealand ly 8% Total 12,100 Total 16,400 31
Slide 32: What is a Pre-Engineered Building (PEB)?
_ What is a Pre-Engineered Building (PEB)? it Fully designed and engineered building Comprising steel structural frame and roofing systems, typically with steel walling ae Wane SER Butler is THE PEB company Design, Engineering, Manufacturing, Sales & Marketing 32
Slide 33: Why PEBs? Speed, Cost Effectiveness, Broad Application
Why PEBs? Speed, Cost Effectiveness, Broad Application : RD dia i
Slide 34: Butler Buildings North America. #1 in PEBs
Butler Buildings North America. #1 inPEBsS
Slide 35: We a Ye _ Lo ae CC
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Slide 36: Butler China. #1 in PEBs
/ Butler China. #1 in PEBs , Customers include multinationals & leading Chinese firms, eg a ee * Caterpillar (above left) * Allied Signal (left) + Yan Feng Automotive Trim (above) + 3M * Energizer + Motorola * Nike * Orient Home * Carrefour 36
Slide 37: Strong nationwide metal building solutions network in China
Strong nationwide. metal building solutions network i in China BlueScope Steel’s China Footprint BlueScope Steel in China [4 4 Metal Coating/Paint Line facility (under construction) @ 4 ysaght manufacturing facilities * 2 Butler PEB manufacturing facilities © 39 Lysaght sales offices ® 8CSC (Coated
Slide 38: SSSR
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Slide 39: ieee
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