Bluescope Steel Limited · ASX:BSL
Bluescope Steel — FY2023 Earnings Presentation
95 slides from Bluescope Steel's earnings presentation, Aug 21, 2023
Slide 1: FY2023 Financial Results Presentation
FY2023 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Mark Scicluna Acting Chief Financial Officer 21 August 2023 Pictured: BlueScope Steel Limited. ASX Code: BSL Greater Shepparton Secondary ABN: 16 000 011 058 College in Victoria, Australia Level 24, 181
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 financial advice. Reliance should not b
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY BlueScope acknowledges the Traditional Custodians of the land on which we work, live and operate. We recognise our First Nations Peoples who have inhabited Australia for millennia, their enduring connection to Country, sky, and waterways and their rich and vital cultures.
Slide 4: FY2023 Highlights
FY2023 HIGHLIGHTS Positioning for long term sustainable growth and returns • FY2023 results demonstrate strength of BlueScope’s diversified business model – Underlying EBIT of $1.61Bn and ROIC of 14.6%, maintained strong balance sheet with ~$700M net cash and delivered over $500M in shareholder retu
Slide 5: Health, Safety & Environment Starts With All of Us
HEALTH, SAFETY & ENVIRONMENT STARTS WITH ALL OF US Our integrated, people-centred HSE strategy: • Sustains a culture of learning from our people, especially those who make and handle our product, to develop smart solutions to manage risk • Drives HSE risk control projects to build capacity in proces
Slide 6: FY2023 Financial Highlights
FY2023 FINANCIAL HIGHLIGHTS Robust result in a softer macro environment, demonstrating the strength of BlueScope’s diversified business model Underlying EBIT1 Underlying EBIT Return Reported NPAT On Invested Capital2 $1.61Bn 14.6% $1.01Bn Down $2.18Bn on FY2022 Down from 41.6% in FY2022 Down $1.80Bn
Slide 7: FY2023 Underlying EBIT
FY2023 UNDERLYING EBIT Robust earnings across our regions despite softening from cyclically strong conditions in FY2022 Australia North America1 Asia $537M $965M $142M Down 59% on FY2022 Down 57% on FY2022 Down 14% on FY2022 New Zealand and Corporate, Group and Profit Pacific Islands in Stock Elimin
Slide 8: FY2023 Climate Action Update
FY2023 CLIMATE ACTION UPDATE Continuing our pursuit of emissions reduction projects in line with our 2030 steelmaking and non-steelmaking targets and 2050 net zero goal1 FY2023 Highlights Steelmaking target2 (92% of Scope 1 and 2 emissions) GHG emissions intensity (tCO2-e per tonne raw steel) • Acce
Slide 9: New Zealand Steel Electric Arc Furnace
NEW ZEALAND STEEL ELECTRIC ARC FURNACE BlueScope and NZ Government agreed to co-fund NZ$300M in decarbonisation of NZ Steel Accelerated feasibility study NZS’s unique kiln and melter operation allow for a smaller into new EAF at Glenbrook modular EAF solution • Expected cost ~NZ$300 million, of whic
Slide 10: FY2023 Sustainability Update
FY2023 SUSTAINABILITY UPDATE Embedding sustainability in all that we do Inclusion & Diversity Sustainable Supply Chain Regulatory Proceedings • Continuing our work to reflect the • Increase in suppliers being • On 9 December 2022, the communities in which we operate assessed through EcoVadis or Fede
Slide 11: Our Purpose and Strategy
OUR PURPOSE AND STRATEGY In place since late 2019, Our Strategy sets out how we will deliver on Our Purpose and drive transformation and growth, while continuing to deliver on core expectations for our stakeholders OUR PURPOSE We create and inspire smart solutions in steel, to strengthen our communi
Slide 12: Port Kembla Blast Furnace Reline & Upgrade Approved
PORT KEMBLA BLAST FURNACE RELINE & UPGRADE APPROVED Comprehensive refurbishment and modernisation, incl. technologies to enable medium to longer-term emission intensity improvement • Board has approved the reline and upgrade of No.6 blast furnace (6BF) at Port Kembla Steelworks – Provides critical b
Slide 13: Port Kembla Blast Furnace Reline & Upgrade
PORT KEMBLA BLAST FURNACE RELINE & UPGRADE Scope of work includes traditional reline plus a significant upgrade of parts of the facility and supporting infrastructure, including investment in environmental improvements Replacement of Key downcomer and upgrade New slag Traditional Reline of dust coll
Slide 14: Our Vision for Port Kembla
OUR VISION FOR PORT KEMBLA Progressing a range of initiatives to transition Port Kembla towards a low-carbon, modern manufacturing future • Next wave of customer, growth and productivity improvements Robotics, • Embedding capability within the business with new digital resources Automation & Digital
Slide 15: Western Sydney Metal Coating Line Construction
WESTERN SYDNEY METAL COATING LINE CONSTRUCTION • Commencing construction of new metal coating line (MCL) at Erskine Park with approx. capacity of 240ktpa • New MCL will better enable us to meet growing demand for steel building and construction products – in particular: – TRUECORE® steel light gauge
Slide 16: Business performance
Business performance 16
Slide 17: Australia
AUSTRALIA 2H FY2023 saw stronger volumes offset by lower spreads on weaker pricing; record COLORBOND® sales in FY2023 Underlying EBIT ($M) • Domestic despatches increased in 2H 1,298 FY2023 on the easing of unfavourable weather and labour impacts observed in 610 the prior half and non-repeat of dist
Slide 18: Australia
AUSTRALIA Increased volumes across building and construction end use segments in 2H FY2023 Total Australian domestic despatch volumes (kt) Dwelling • Approximately half of product goes to Alterations & Total construction % shown in dark red Additions (A&A) sub-segment 74% 74% • Demand remained relat
Slide 19: Australia
AUSTRALIA Detached building approvals continued their pullback during the year; renovation and non-residential approvals remain elevated, especially across commercial and industrial Monthly dwelling approvals1 (‘000 units, annualised) Alterations and additions approvals2 ($Bn) Detached at the lower
Slide 20: North America
NORTH AMERICA Improved result at North Star in 2H FY2023 on volumes; strong downstream performance across engineered buildings and Steelscape / ASC Profiles Underlying EBIT ($M) North Star 2,260 EBIT $443M in FY2023; $242M in 2H FY2023 846 • Slightly weaker realised spreads in 2H FY2023, noting spec
Slide 21: North America
NORTH AMERICA Non-residential construction continued to strengthen; auto demand remained resilient despite continued supply chain challenges; manufacturing softened on recession concerns Non-residential construction1 Automotive2 Manufacturing3 (Value of work put in place, US$Bn; ABI) (Light vehicle
Slide 22: Asia
ASIA Strong improvement in margin and volumes in the ASEAN business in 2H FY2023; China weaker on seasonality and softening demand Underlying EBIT ($M) China 166 EBIT $91M in FY2023; $17M in 2H FY2023 142 63 • Record full year result, with typical seasonality and softening demand leading 80 2H to a
Slide 23: New Zealand and Pacific Islands
NEW ZEALAND AND PACIFIC ISLANDS Softer result in 2H FY2023 on softer prices and spreads Underlying EBIT ($M) 229 142 129 • Broadly similar domestic despatches 43 2H despite a challenging economic environment, and supply and cost 86 86 1H constraint impacts on construction activity FY2022 FY2023 • We
Slide 24: Underlying Group EBIT Variance
UNDERLYING GROUP EBIT VARIANCE A strong FY2023 result, albeit lower than the record earnings achieved in FY2022; 2H FY2023 marginally weaker than 1H FY2023 on lower spreads FY2023 vs FY2022 ($M) 2H FY2023 vs 1H FY2023 ($M) 3,787 Net spread decrease $1,911M (290) Raw material costs ($M) Coal (incl. l
Slide 25: Financial framework
Financial framework 25
Slide 26: Financial Framework Underpinning Resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE Strong focus on driving financial performance and disciplined allocation of capital Disciplined Returns Focus Robust Capital Structure Capital Allocation • ROIC > WACC on average through • Strong balance sheet, with a target • Invest to maintain safe and r
Slide 27: Returns Focus Delivering ROIC
RETURNS FOCUS DELIVERING ROIC Targeting returns above cost of capital through the cycle • ROIC1 is the primary Group ROIC Performance (%) measure of performance across all business units and is a key focus for the Group. ROIC is a key 41.6% discipline for: 24.8% 19.5% – performance 7.6% 14.6% manage
Slide 28: Returns Focus Maximising Cash Generation
RETURNS FOCUS MAXIMISING CASH GENERATION Strong operating cash flow funding investment in the portfolio and returns to shareholders Net cash flow ($M) Net cash / (debt)1 ($M) (before investment exp and financing) $M FY2021 FY2022 FY2023 2H23 (281) Reported EBITDA 2,246 4,398 2,146 990 Adjust for oth
Slide 29: Robust Capital Structure Net Cash Position; Ample Liquidity
ROBUST CAPITAL STRUCTURE NET CASH POSITION; AMPLE LIQUIDITY Strong balance sheet providing the foundation to deliver long term sustainable earnings and growth • Maintained investment grade credit Net cash / (debt)1 ($M) Liquidity ($M) ratings (undrawn facilities and cash) 798 3,694 3,655 • Strong ba
Slide 30: Disciplined Capital Allocation Capital Expenditure
DISCIPLINED CAPITAL ALLOCATION CAPITAL EXPENDITURE Investing for sustainable earnings growth Capital allocation framework Capital and acquisition expenditure1 ($M) 1,121 Operating Asset Sales Divestments 96 North Star expansion Growth Cash Flow 11 6BF reline & upgrade Foundation & Climate Acquisitio
Slide 31: Disciplined Capital Allocation Future Investment Priorities
DISCIPLINED CAPITAL ALLOCATION FUTURE INVESTMENT PRIORITIES Indicative ~$1.9Bn of projects identified for growth, foundational investment and to position the business for a low carbon future Future investment priorities Project Description FY24 FY27 ~$1.9Bn Port Kembla ~$70M pipe & tube mill Port Ke
Slide 32: Disciplined Capital Allocation Shareholder Returns
DISCIPLINED CAPITAL ALLOCATION SHAREHOLDER RETURNS $3.0Bn returned since FY2017; announced fully franked final dividend of 25cps and an increase in the scale and tenor of on-market share buy-back program Dividends paid and buy-backs1 ($M) • BlueScope’s capital management policy is to distribute at E
Slide 33: 1H FY2024 Business unit guidance
1H FY2024 Business unit guidance 33
Slide 34: Segment Guidance for 1H FY2024
SEGMENT GUIDANCE FOR 1H FY2024 Outlook subject to assumptions and qualifiers referenced on page 36 Australia • Expect a similar result to 2H FY2023 Asia • Expect a slightly better result than 2H • Stronger benchmark spreads, in part offset by FY2023 weaker realised export prices and unfavourable • C
Slide 35: 1H FY2024 Group outlook and summary
1H FY2024 Group outlook and summary 35
Slide 36: 1H FY2024 Group Outlook
1H FY2024 GROUP OUTLOOK1 • Underlying EBIT in 1H FY2024 is expected to be in the range of $700M to $770M. • For the purposes of the outlook, the Company has made the following 1H FY2024 average assumptions: – US mini-mill benchmark spreads to be ~US$50/t lower than 2H FY20232 – East Asian HRC price
Slide 37: A Resilient Business Delivering Returns Through the Cycle
A RESILIENT BUSINESS DELIVERING RETURNS THROUGH THE CYCLE A different kind of steel company being purpose-led, sustainability focussed and differentiated by strong brands Well positioned with a high-quality asset portfolio to take advantage of favourable industry and end use trends Disciplined appro
Slide 38: Questions
Questions 38
Slide 39: A Different Kind of Steel Company
A Different Kind of Steel Company What makes us different? Purpose-led and sustainability focussed High-quality asset portfolio Leading product technologies, branding & channels Financial strength & cost competitiveness Deploying financial strength for long term sustainable growth and returns 39
Slide 40: Our Bond
Our Bond Our Customers are our partners Our People are our strength Our Our Shareholders are our foundations Purpose Our Local Communities are our homes We create and inspire smart solutions in steel, to strengthen our communities for the future. 40
Slide 41: Purpose-led and Sustainability Focussed: Five Key Sustainability Outcomes
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED FIVE KEY SUSTAINABILITY OUTCOMES Sustainable growth and transformation Operate and transform our business for enduring success with good governance, capital discipline, customer focus and strengthened people, process and technology capabilities Safe, healthy
Slide 42: Health, Safety and Environment
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED HEALTH, SAFETY AND ENVIRONMENT Balanced indicators to drive our people-centred strategy and commitment to protecting the environment Leading Health and Safety Metrics Lagging Health & Safety Metrics • Focus on leading indicators for risk management, includin
Slide 43: Health, Safety and Environment
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED HEALTH, SAFETY AND ENVIRONMENT Balanced indicators to drive our people-centred strategy and commitment to protecting the environment and conserving our natural resources Leading Environment Metrics • Our environmental aspirations framework, and the subsequen
Slide 44: Climate Action
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED CLIMATE ACTION A range of opportunities in progress, supported by the 5-year climate investment program, of up to $150M Optimising current operating assets Steelmaking transformation Steelmaking Port Kembla, Aus Glenbrook, NZ • Completed DRI-Melter concept s
Slide 45: Inclusion, Diversity and Social Impact
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED INCLUSION, DIVERSITY AND SOCIAL IMPACT We continue to build an inclusive workforce, which reflects the diversity of the communities in which we operate, and are working to drive positive social impact and mitigate adverse impacts Inclusion & Diversity Women
Slide 46: Supply Chain Sustainability
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED SUPPLY CHAIN SUSTAINABILITY We foster responsible business practices and uphold human rights through engagement, risk assessment and improvement activities Our Approach FY2023 Progress • Completed the Engage and Assess process with 385 suppliers We prioritis
Slide 47: Quality Assets Across Large and Growing Markets
2 HIGH QUALITY ASSET PORTFOLIO QUALITY ASSETS ACROSS LARGE AND GROWING MARKETS • Strong operating leverage from diverse business India China South East Asia portfolio • A leader in metal coating and painting for building and construction • Iconic industrial brand position of COLORBOND® steel • Integ
Slide 48: Diversified Business
2 HIGH QUALITY ASSET PORTFOLIO DIVERSIFIED BUSINESS Geographic diversity and increasing contribution from value-added products Underlying EBITDA by region BlueScope despatch volume mix 100% Buildings and Coated NZ & Pacific Products North America $160M North America 90% Asia $1,164M Coated Products
Slide 49: Broad Exposure to End-Use Segments
2 HIGH QUALITY ASSET PORTFOLIO BROAD EXPOSURE TO END-USE SEGMENTS Broad exposure across geographies, largely focussed on the building and construction industry BlueScope indicative despatch volume split by region and end-use segment1 Other (Exports) Automotive North Star: exposed mainly to the autom
Slide 50: Well Positioned for the Favourable Long Term Outlook for Steel
2 HIGH QUALITY ASSET PORTFOLIO WELL POSITIONED FOR THE FAVOURABLE LONG TERM OUTLOOK FOR STEEL The global green revolution driving demand for steel as a critical input for a clean energy future (incl. wind, solar and transmission infrastructure) Steel intensive building and construction supported
Slide 51: Leading Product Technologies
3 LEADING PRODUCT TECHNOLOGIES Continued investment in research & development to maintain leadership in steel coating and painting technologies Product Technology and Development Leadership • Advanced pre-painted and metallic coating development for building, construction and home appliance segments
Slide 52: Leading Brands and Channels
3 LEADING BRANDS AND CHANNELS A portfolio of many well-known and respected names to support our premium branded positions; clear focus on knowing our end customers and maintaining strong channels to market Brands Channels Australia ® ® Zealand New ® ® Asia ® ® ® ® America North ® ® ® 52
Slide 53: Financial Strength & Cost Competitiveness: Financial Framework
4 FINANCIAL STRENGTH & COST COMPETITIVENESS GUIDED BY OUR FINANCIAL FRAMEWORK Strong returns, a robust balance sheet and a disciplined approach to capital allocation Returns Robust Disciplined Focus Capital Structure Capital Allocation Targeting shareholder returns Focus on ROIC and free cash genera
Slide 54: Australian Steel Products Cost Competitiveness
4 FINANCIAL STRENGTH & COST COMPETITIVENESS AUSTRALIAN STEEL PRODUCTS Australian steelmaking breakeven at minimum recent spreads; benefits from vertical integration Asian steel spread1 & estimated steelmaking The value of vertical integration cash breakeven2 (US$/t) • Clear objective of optimising p
Slide 55: North Star
4 FINANCIAL STRENGTH & COST COMPETITIVENESS NORTH STAR Strong EBITDA and cash generation through the cycle; industry leading margins; consistently full utilisation US$M EBITDA and spread (100% basis) EBIT margins3 (%) 1,400 US mini-mill spread1 1,352 13% 1,300 EBITDA (100% basis) 10% Cash flow (EBIT
Slide 56: Deploying Financial Strength Future Investment Priorities
5 DEPLOYING FINANCIAL STRENGTH FUTURE INVESTMENT PRIORITIES Indicative ~$1.9Bn of projects identified for growth, foundational investment and to position the business for a low carbon future Future investment priorities Project Description FY24 FY27 ~$1.9Bn Port Kembla ~$70M pipe & tube mill Port Ke
Slide 57: Digitally Transforming Our Business
5 DEPLOYING FINANCIAL STRENGTH DIGITALLY TRANSFORMING OUR BUSINESS Delivering the next wave of customer, growth and productivity improvements through technology Strengthen Capabilities Right skills and behaviours foundations to Data and platforms Investing in enabling platforms Transfer learnings ac
Slide 58: Investing in Growth at ASP
5 DEPLOYING FINANCIAL STRENGTH INVESTING IN GROWTH AT ASP A wide range of growth opportunities in intermaterial applications Premium coated and painted products Value-added commodity products Residential steel framing Cladding & facade applications TRU-SPEC® coil plate • Solid growth in TRUECORE® st
Slide 59: Additional Information: Group-level Material
Additional Information: Group-level Material 59
Slide 60: Financial Headlines
FINANCIAL HEADLINES TWELVE MONTHS ENDED FY2023 vs $M (unless marked) 30 June 2022 30 June 2023 FY2022 Total revenue 19,029.9 18,242.5 External despatches of steel products (kt) 7,696.2 8,413.2 EBITDA − Underlying 4,336.7 2,266.0 EBIT − Reported 3,848.9 1,487.3 − Underlying 1 3,787.2 1,607.7
Slide 61: Reconciliation Between Reported and Underlying EBIT and NPAT
RECONCILIATION BETWEEN REPORTED AND UNDERLYING EBIT AND NPAT1 FY2022 FY2023 $M EBIT $M NPAT $M EBIT $M NPAT $M Reported results 3,848.9 2,810.2 1,487.3 1,009.2 Underlying adjustments Discontinued business (gains) / losses (3.0) (1.9) (8.5) (5.7) Asset impairments / (write-backs) (37.3) (11.5) 50.0 2
Slide 62: Underlying Earnings, Net Finance and Tax Cost
UNDERLYING EARNINGS, NET FINANCE AND TAX COST 1H 2H $M FY2023 Breakdown of net finance costs FY2023 FY2023 Reg-S Bonds (repaid in full in Jan-23) 11.7 Underlying EBIT 851.1 756.6 1,607.7 Core bilateral loan facility charges 8.8 Underlying finance costs (37.9) (32.6) (70.5) Leases 29.7 Interest reven
Slide 63: Summary of Financial Items by Reporting Segment
SUMMARY OF FINANCIAL ITEMS BY REPORTING SEGMENT Sales revenue Total steel despatches $M FY2022 1H FY2023 2H FY2023 FY2023 '000 tonnes FY2022 1H FY2023 2H FY2023 FY2023 Australian Steel Products 8,228.7 4,089.7 3,840.5 7,930.2 Australian Steel Products 3,156.3 1,678.5 1,646.6 3,325.1 North Star BlueS
Slide 64: Cash Flow Statement
CASH FLOW STATEMENT $M FY2022 1H FY2023 2H FY2023 FY2023 Reported EBITDA 4,398.3 1,155.5 990.2 2,145.7 Adjust for other cash profit items (51.7) 17.8 62.7 80.5 Cash from operations 4,346.6 1,173.3 1,052.9 2,226.2 Working capital movement (inc provisions) (1,399.2) 210.0 184.5 394.5 Gross operating c
Slide 65: Working Capital
WORKING CAPITAL 3,053 (52) 2,795 345 (268) 2,731 2,713 (7) 1,687 Jun-21 Dec-21 Jun-22 Dec-22 Receivables Inventory Payables1 Deferred Jun-23 income NWC % of 6 months’ 12.0% 14.8% 15.9% 14.5% 15.4% Sales (annualised) 1. Trade and sundry payables 65
Slide 66: Inventory Movement
INVENTORY MOVEMENT RM1 $1,046M WIP2 $866M $52M decrease comprised of segment movements: FG3 $1,008M RM $1,036M (including eliminations and other of $18M) Other4 $350M WIP $830M FG $954M Other $399M BCPNA – driven by higher volumes of raw 93 3,271 materials, partially offset by lower rates 3,219 Nort
Slide 67: Balance Sheet
BALANCE SHEET $M 30 Jun 2022 31 Dec 2022 30 Jun 2023 Assets Cash 1,682.7 1,919.6 1,489.8 Receivables and Contract Assets * 2,215.3 1,601.1 1,946.2 Inventory * 3,748.1 3,270.5 3,218.7 Property, Plant & Equipment 5,310.3 5,470.5 5,642.2 Right Of Use Assets 374.4 387.6 386.9 Intangible Assets 2,685.2 2
Slide 68: Prudent Maturity Profile
PRUDENT MATURITY PROFILE Bilateral facilities increased and extended in November 2022 Maturity profile1 ($M) Bilateral Loan Agreements NS BlueScope JV facilities (100%) Inventory Finance 503 76 457 427 Sale of receivables program: • In addition to debt facilities, BlueScope had $345M of off- balance
Slide 69: Committed Debt Facilities as at 30 June 2023
COMMITTED DEBT FACILITIES AS AT 30 JUNE 20231 Committed Drawn Maturity Local currency A$M A$M Bilateral Loan Agreements - Tranche A Jul 2025 A$427M A$427M - - Tranche B Jul 2026 A$427M A$427M - Reg-S Bonds repaid - Tranche C from cash in January Jul 2027 A$457M A$457M - 2023, ahead of their Reg-S Bo
Slide 70: Buy Back History
BUY BACK HISTORY 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H Total FY17 FY18 FY18 FY19 FY19 FY20 FY20 FY21 FY21 FY22 FY22 FY23 FY23 Shares bought 12.8 12.0 9.2 18.9 17.0 14.6 2.9 - - 13.6 18.8 7.4 8.4 135.6 (M) Consideration 150 148 152 293 217 186 34 - - 285 353 120 165 2,102 ($M) Average price $11.74 $
Slide 71: Indicative Half Year EBIT Sensitivities
INDICATIVE HALF YEAR EBIT SENSITIVITIES1 Sensitivities may vary subject to volatility in prices, currencies and market dynamics – refer to page 76 Australian Steel Products segment New Zealand Steel & Pacific Steel segment North Star segment +/- US$10/t move in average benchmark hot rolled +/- US$10
Slide 72: Additional Information: Segment Material
Additional Information: Segment Material 72
Slide 73: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 '000 Tonnes FY2022 1H FY2023 2H FY2023 FY2023 Revenue 8,228.7 4,089.7 3,840.5 7,930.2 Hot rolled coil 692.4 249.8 300.5 550.3 Underlying EBIT
Slide 74: Australian Steel Products: Underlying EBIT Variance
AUSTRALIAN STEEL PRODUCTS Underlying EBIT variance FY2023 vs FY2022 ($M) 2H FY2023 vs 1H FY2023 ($M) Net spread decrease $469M Raw material costs ($M) 1,298 Coal (incl. lower coke margin of -$127M) (427) Iron ore 175 Scrap & alloys 43 Raw material costs ($M) (336) Coating metals (52) Coal (incl. low
Slide 75: Australian Steel Products: Spreads
AUSTRALIAN STEEL PRODUCTS Spreads contracted during 2H FY2023, with higher raw material cost offsetting higher price Indicative steelmaker HRC lagged spread Notes on calculation: • ‘Indicative steelmaker HRC spread’ $800 representation based on simple input blend of 1.5t iron ore fines and 0.71t har
Slide 76: Australian Steel Products: Relationships with Benchmark Pricing
AUSTRALIAN STEEL PRODUCTS Relationships with benchmark pricing • Selling prices across majority of domestic product correlated with SBB East Asia HRC price; lagged generally three to five months; degree of Steel prices correlation between realised and benchmark prices can vary within a given half ye
Slide 77: Australian Steel Products: Despatch Mix
AUSTRALIAN STEEL PRODUCTS Despatch mix (Mt) FY2023 Product Mix 1.68 1.64 1.58 1.57 0.16 Export 0.30 0.52 0.43 Export 0.09 0.09 Domestic - 0.05 0.07 ext. sourced Slab CRC Other HRC Metal Coated (inc ext Plate Painted sourced) 1.33 1.18 Domestic - BSL 1.09 1.16 manufactured Domestic 1H FY2022 2H FY202
Slide 78: Australian Steel Products: Revenue and Costs
AUSTRALIAN STEEL PRODUCTS FY2023 Revenue FY2023 Underlying costs (to EBIT line) A$7,930M A$7,393M Non-steel business Non-steel business costs relate to: • Export coke Non-steel business Conversion & overhead • Export coke sales • Cold ferrous costs • Cold ferrous feed to Infrabuild components (in or
Slide 79: Finley Solar Farm PPA Derivative Revaluation History
AUSTRALIAN STEEL PRODUCTS Finley Solar Farm Power Purchase Agreement (PPA) derivative revaluation history P&L Benefit / (Charge) from Finlay PPA Derivative Revaluation ($M) • In July 2018, ASP entered into a 7- 60 year Power Purchase Agreement 53 (PPA), where BlueScope will offtake 66% of the 133MW
Slide 80: Australian Steel Products: Dwelling Approvals
AUSTRALIAN STEEL PRODUCTS Despite an easing in supply chain disruptions and improving weather conditions, detached approvals continued to pull back, feeling the impact of aggressive monetary tightening Long-Term Dwelling Approvals: rolling 12 months1 (‘000) Dwelling Commencements: by halves2 (‘000)
Slide 81: Australian Steel Products: Non-Residential Approvals
AUSTRALIAN STEEL PRODUCTS Non-residential approvals have remained resilient across all sub-sectors, particularly public investment in health & education and private investment in warehousing Non-Residential Building Approvals: rolling 12 months1 (A$Bn) Non-Residential Work Done: by halves2 (A$Bn) Bo
Slide 82: North Star
NORTH STAR Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 Revenue 4,494.5 1,633.6 1,846.0 3,479.6 Revenue 3,259.6 1,096.0 1,244.8 2,340.8 Under
Slide 83: North Star: Underlying EBIT Variance
NORTH STAR Underlying EBIT variance FY2023 vs FY2022 ($M) 2H FY2023 vs 1H FY2023 ($M) Net spread decrease 1,900 $1,819M (2,069) 443 17 Net spread decrease $11M 242 327 202 46 (16) (55) 44 21 18 250 FY2022 Prices Raw Conversion Volume FX FY2023 1H Prices Raw Conversion Volume FX 2H material & other &
Slide 84: North Star Expansion Capital Spend Profile
NORTH STAR North Star expansion capital spend profile Accounting capital spend (incl. capital accruals) Total to 1H FY2021 2H FY2021 1H FY2022 2H FY2022 1H FY2023 2H FY2023 30-Jun-20 US$M 140.7 212.7 164.0 129.4 69.5 7.4 2.1 A$M 210.0 294.0 212.5 176.4 96.2 10.8 3.0 Cash capital spend Total to 1H FY
Slide 85: Buildings and Coated Products North America
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 Revenue 2,980.1 1,903.5 1,737.3 3,640.8 Revenue 2,15
Slide 86: Buildings and Coated Products North America: EBIT Variance
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Underlying EBIT variance FY2023 vs FY2022 ($M) 2H FY2023 vs 1H FY2023 ($M) Net margin increase $222M 147 (149) 527 (79) 33 224 Net margin increase $8M 351 277 (42) (32) 250 158 (3) (108) FY2022 Prices Raw Conversion Volume FX FY2023 1H Prices Raw Conversio
Slide 87: Coated Products Asia
COATED PRODUCTS ASIA Financial and despatch summaries Key segment financial items Despatches by business $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 ‘000 metric tonnes FY2022 1H FY2023 2H FY2023 FY2023 Revenue 2,770.5 1,433.7 1,196.9 2,630.6 Thailand 333.0 133.2 158.3 291.5 Underlying EBITDA
Slide 88: Coated Products Asia: Underlying EBIT Variance
COATED PRODUCTS ASIA Underlying EBIT variance FY2023 vs FY2022 ($M) 2H FY2023 vs 1H FY2023 ($M) Net spread increase $4M 166 (1) (31) Net spread increase $83M (5) 142 8 (28) (40) (158) 163 80 140 3 62 (4) (53) FY2022 Export Domestic Raw Conversion Volume FX FY2023 1H Export Domestic Raw Conversion Vo
Slide 89: New Zealand & Pacific Islands
NEW ZEALAND & PACIFIC ISLANDS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked FY2022 1H FY2023 2H FY2023 FY2023 '000 Tonnes FY2022 1H FY2023 2H FY2023 FY2023 Revenue 1,125.2 461.7 500.9 962.6 Domestic despatches Underlying EBITDA 256.6 100.6 59.8 16
Slide 90: New Zealand & Pacific Islands: Underlying EBIT Variance
NEW ZEALAND & PACIFIC ISLANDS Underlying EBIT variance FY2023 vs FY2022 ($M) 2H FY2023 vs 1H FY2023 ($M) Net spread decrease $12M Includes $5M reduction in vanadium by-product sales 87 (77) 229 (22) (2) (78) 129 Includes $3M improvement in (8) vanadium by-product sales Net spread decrease $38M 86 4
Slide 91: New Zealand & Pacific Islands: Despatch Mix
NEW ZEALAND & PACIFIC ISLANDS Despatch mix (Mt) FY2023 Product Mix 302.9 283.8 0.1 1.2 Domestic 49.4 260.6 40.3 10.8 Export long 216.6 57.3 Export flat 5.2 111.6 26.1 109.1 HRC 77.3 86.1 Domestic long Plate CRC Metal Coated Painted 133.2 141.8 Other flat products 108.0 106.4 Domestic flat Pacific St
Slide 92: New Zealand & Pacific Islands: Housing Approvals
NEW ZEALAND & PACIFIC ISLANDS An extended period of record high approvals in housing now pulling back as central bank policy on addressing high inflation and taking heat out of the economy takes effect Residential Building Consents: rolling 12 months1 (‘000) Residential Work Put in Place: by quarter
Slide 93: New Zealand & Pacific Islands: East Asian Rebar Price
NEW ZEALAND & PACIFIC ISLANDS The East Asian rebar price influences domestic and export long product pricing SBB East Asian rebar price, unlagged (US$/t) $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
Slide 94: Glossary
GLOSSARY 1H Six months ended 31 December in the relevant financial year FY2022 12 months ending 30 June 2022 1H FY2023 Six months ended 31 December 2022 FY2023 12 months ending 30 June 2023 1H FY2024 Six months ended 31 December 2023 GHG Greenhouse gas 2H Six months ended 30 June in the relevant fin
Slide 95: FY2023 Financial Results Presentation
FY2023 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Mark Scicluna Acting Chief Financial Officer 21 August 2023 Pictured: BlueScope Steel Limited. ASX Code: BSL Greater Shepparton Secondary ABN: 16 000 011 058 College in Victoria, Australia Level 24, 181