Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Merger or Acquisition (April 2022)
18 slides from Bluescope Steel's merger presentation, Apr 11, 2022
Slide 1: US painting expansion – Coil Coatings acquisition
US painting For personal use only expansion – Coil Coatings acquisition Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 11 April 2022 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058 Level 11, 120 Collins 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 For personal use only securities. Any decision to buy or sell BlueScope Steel Limited securities or other products should be made only after seeking appropriate financial advice.
Slide 3: Coil Coatings Acquisition
COIL COATINGS ACQUISITION BlueScope has agreed to acquire Coil Coatings from Cornerstone Building Brands, Inc. For personal use only Transaction overview Business overview Strategic rationale • Purchase price of US$500M1 on a cash • Second largest metal painter in the US 1 and debt free basis • Annu
Slide 4: Coil Coatings Business Overview
For personal use only Coil Coatings Business Overview 4
Slide 5: Coil Coatings at a Glance
COIL COATINGS AT A GLANCE The second largest provider of metal coil painting services in the US For personal use only Business overview • Coil Coatings is the second largest metal coil painter in Brand the US, with seven strategically located sites • Manufacturing capabilities include a broad range
Slide 6: Performance and End-Use Segments
PERFORMANCE AND END-USE SEGMENTS Strong financial performance with sales mix focussed on building and construction end-markets For personal use only Pro-forma adjusted CY2021 performance End-use segments End-Use Segments 526 • Cornerstone Building 1 Volume Brands represents Transportation around 50%
Slide 7: The US Painted Market
THE US PAINTED MARKET A significant opportunity exists in the US painted market for BlueScope, with Coil Coatings located in For personal use only key building and construction end-use demand regions Market size Located in key end-use demand regions • Total US painted demand is around 4.5 million me
Slide 8: Strategic Rationale
For personal use only Strategic Rationale
Slide 9: Our Purpose and Strategy
OUR PURPOSE AND STRATEGY For personal use only OUR PURPOSE 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 GROW OUR PORTFOLIO OF DELIVER A SAFE WORKPLACE, CUSTOMER EXPERIENCE AND SUSTAINABLE STE
Slide 10: Strategic Rationale
STRATEGIC RATIONALE Consistent with Our Purpose and Strategy, Coil Coatings represents a compelling addition to For personal use only BlueScope’s North American business 1 Rare opportunity to immediately fulfil previously flagged strategic growth initiative; provides immediate access to the large an
Slide 11: Rare Opportunity to Immediately Fulfil Our Strategic Growth Initiative
1 RARE OPPORTUNITY TO IMMEDIATELY FULFIL OUR STRATEGIC GROWTH INITIATIVE For personal use only Provides immediate access to the large and growing Eastern US region Recycling & Steelmaking Cold Rolling & Metallic Coating Middletown, OH Cambridge, OH Rancho Cucamonga, CA Memphis, TN Coil Painting Mari
Slide 12: Near-Term Synergies and Potential for Medium to Longer-Term Growth
2 NEAR-TERM SYNERGIES AND POTENTIAL FOR MEDIUM TO LONGER-TERM GROWTH For personal use only Near term enhancement opportunities Medium to longer-term enhancement opportunities ✓ through customer volume growth ✓ capacity and improve efficiency Drive increased utilisation across the network Identified
Slide 13: Opportunity for Future Vertical Integration Across BlueScope's Flat Steel Value-Chain
3 OPPORTUNITY FOR FUTURE VERTICAL INTEGRATION ACROSS BLUESCOPE’S FLAT STEEL VALUE-CHAIN For personal use only Recycling & Cold Rolling & Buildings & Steelmaking Metallic Coating Coil Painting Components Construction • North Star is a low-cost regional • Steelscape focussed on the • Steelscape focuss
Slide 14: Acquisition Fully Funded from Cash; BlueScope Remains in a Strong Position
4 ACQUISITION FULLY FUNDED FROM CASH; BLUESCOPE REMAINS IN A STRONG POSITION For personal use only Attractive financial outcomes Balance sheet discipline maintained ✓ to longer-term growth potential Operational and supply chain synergies and medium BlueScope net cash (A$M) 698 100% funded from cash
Slide 15: Summary & Conclusion
For personal use only Summary & Conclusion 15
Slide 16: Summary and Conclusion
SUMMARY AND CONCLUSION Unique US painting opportunity for BlueScope For personal use only ✓ Coil Coatings provides a rare opportunity for BlueScope to immediately fulfil a previously flagged strategic growth initiative, and provides immediate access to the large and growing Eastern US region ✓ Near-
Slide 17: Questions
For personal use only Questions 17
Slide 18: US painting expansion – Coil Coatings acquisition
US painting For personal use only expansion – Coil Coatings acquisition Mark Vassella Managing Director and Chief Executive Officer Tania Archibald Chief Financial Officer 11 April 2022 BlueScope Steel Limited. ASX Code: BSL ABN: 16 000 011 058 Level 11, 120 Collins St, Melbourne, VIC, 3000