Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (November 2006)
32 slides from Bluescope Steel's investor presentation, Nov 23, 2006
Slide 1: si ee
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Slide 2: Important notice
mportantnotice = 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: Coated Steel China - a new business is starting up
Coated Stee! China - anew business is starting up 1999 - Sales & marketing office established to seed China market with metallic coated and painted products April 2004 - Groundbreaking for Suzhou facility January 2006 - Paint on strip March 2006 - First despatch of painted coil from Suzhou Sept 2006
Slide 4: China Coating Project Location - 80 km west of Shanghai
China Coating Project Location-80 km west of Shanghai @ tysaght shanghai @} BiweScope Steet Suzhou 2% Butler Shanghai
Slide 5: BlueScope Steel Suzhou - Vision
" BlueScope Steel Suzhou - Vision To grow and to be recognized as the best provider of quality products, service and innovation in the coated steel market in China
Slide 6: Suzhou Industrial Park - Overview
Suzhou Industrial Park - Overview + SIP - core area is 80 sq km + SIP - population 300,000 ¢ China has 107 industrial parks - 53 high-tech & 54 economic zones + SIP is the only industrial park with high tech and economic zone * Suzhou city - population 7 million
Slide 7: Suzhou Industrial Park - Overview
~ Suzhou Industrial Park - Overview
Slide 8: Amazing changes of SIP in 12 years
Slide 9: April 2004 - Villages still on BlueScope Steel's site
Slide 10: Our year journey
Our 2 year Joumey TN 22 April 2004 January 2005 March 2005 Grounding Ceremon g y Main Steel Structure set up Building Structure set up August 2005 September 2005 March 2006 Steel Profile installation Equipment installation Overview of Suzhou facility 10
Slide 11: BlueScope Steel Suzhou Facility Overview
BlueScope Steel Suzhou Facility Overview = Project Scope: Metallic Coating Line (MCL) 250,000 TIA Coil Paint Line (CPL) 150,000 T/A Slitting/Recoil Line (SRL) 20,000 T/A Packing Line (PACK) 20 coils per hour Plant to have a high level of Automation Objective to showcase BlueScope Steel products “Bui
Slide 12: Site
Site: Buildings: Cable: Piping: Storage Capacity: 25 Hectares 57,000 Sq.metres under roof 9,700 Tonnes of structural steel §,500 Piles 33,000 Cubic metres of concrete MCL Building can accommodate a 2"4 MCL Highest point 54 metres 400,000 metres 30,000 metres 48,000 tonnes Both truck and barge loadin
Slide 13: BlueScope Steel Suzhou Facility Overview
BlueScope Steel Suzhou Facility Overview _ = Project Management: integrated team of BSS and Hatch = Equipment: Process Lines (MCL,CPL,SRL) ------ KHI & Subcontractors Packing Line ----- Pesmel Electrical ----- Siemens China Cranes ----- Kone Utilities ----- Various Suppliers = Bld & Infrastructure D
Slide 14: Safety - Constant Focus
: Safety - Constant Focus Coating Lines HSE Perfomance Summary : “OCtN6 Leading Indicator Summary - BlueScope Coating Lines Incidents / injuries Ratio ‘women Hiscrcat pam noid fin YTD Formuia _-~——_Total No. of Incident Reported ina Month _ ‘mim Historical Audit Completion % Target Ancient Injuries:
Slide 15: Operations overview
Operations overview = Workforce = Currently 265 = Build up to 300 at full capacity = Live in Suzhou city Logistics = Use waterways and road transport to move product in and out of the plant Manufacturing excellence — increased focus as we ramp-up the facility Flexibility to increase metal coating ca
Slide 16: Product flow through Coated Steel China
‘Product flow through Coated Steel China Zincalume WS BB AR nonin Colerbond
Slide 17: Suzhou Plant Production Flow Chart
‘Suzhou Plant Production Flow Chat OFMEF RMEFRE nn Suzhou Plant Producing Flow Chat : te | seen ene 28 re ee “ “5 : ; F Relehletehiettddatel | a 4 é sd 4 a E ' 4 4 E « a _ F ' 4 4 i ‘ 4 A b iM 4 : hewn “ ‘ a a ' % ‘ ia 5 : a a eee ee es al é 17
Slide 18: MCL & CPL Specification
“MCL & CPL Specification feet se mie RRC ET | i : ei COREA as [ [Mica Hing bmw, EEA i ein Hangs ioe LS ee ant ie cori, " Mipe 8 dita: BE : 5 Paling Steale Nexaortal, earned ; Co ee : 18
Slide 19: Fully Automated Metal Coating Line
“Fully Automated — Metal Coating Line. 7°92 E/ Producing Mapping 19
Slide 20: Painting Line
BREE Painting Line seus cumin uninnnasin n fit BEY aL resi ae prem 20
Slide 21: Slitting line & automatic packing line
‘Slitting line & automatic packing line et OI: fs mie ie BR Packing Line ie 24 Slitting Line 24
Slide 22: China - expected production line ramp up profiles
China - expected production line ramp up profiles Tonnes Metal Coated Tonnes Painted FY2006 FY2007 FY2008 FY2009 FY2006 FY2007 FY2008 FY2009 Prime Product Non-Prime Prime Product i Non-Prime NAMEPLATE CAPACITY 250,000tpa NAMEPLATE CAPACITY 150,000tpa Anticipated | FYO7 Fras ) Fv09 Anticipated | _ FY
Slide 23: Building our brands since
Building our brands since ISSHAR Zincalume {It if Colerbond superior corrosion resistance +excellent mechanical properties *pioneering nano-technology Reliability & Support * unique dirt resistance ‘long lasting beauty ha & itn ‘Cost effective pre-painted steel for roofing and TruZinc at walling Aur
Slide 24: Clean COLORBOND steel
Clean COLORBOND® steel Ae We Cee a hi (),
Slide 25: ZINCALUME steel
-ZINCALUME® steel
Slide 26: Current principal markets and channels to market
Central © North @ souts © West hi = Colerbond fiz iis " Current principal markets are located in: = Central 56 % = North 19 % ® South 15% = West 10% « Brand strength separates the competition » ZINCALUME® steel is the #1 brand in the market. * BlueScope Steel has the most widely recognised painted b
Slide 27: The industry is large, fragmented and volume focused
The industry is large, fragmented and volume focused . op 15 steel mills by crude steel output * Crude Steel production * CRC production’ Tier 1 Tier 2 Tier 3 Source: CISA; team analysis . Baoshan . Anbens . Wuhan? . Tang Shan" . Jiangsu Shagang . Capital (Shougang) . Jinan . Laiwu 9. Ma’anshan 10.
Slide 28: China product domestic pricing has become more volatile
China product domestic pricing has become more volatile China domestic steel pricing (2002 — 2006) 1100 1000 300 800 700 600 500 400 300 + Qt Q2 Q3 Q4 Qi Y¥2002 —@— HRC - 2.0/2.49mm CGI - 0.50/0.54rm —*— PPGi - 0.50/0.54mm Lo Q2 Q4 ¥2003 Qi Q2 ] Q3 | Q4 | QI Q2 Y2004 2005 —®— CRC - 0.50/0.54mm Zn/Al
Slide 29: Going forward - our focus
forward (our Focus is > + Ramping up to achieve line speed & yield * Commissioning of auxiliary equipment & processes + Up skilling & training our employees Ne yy, (our Focus is + Supply agreements with key roll formers + Targeting our product & service offer * Distribute management ~\ Ne y, (our Fo
Slide 30: Suzhou plant is fully commissioned and operational
Suzhou plant is fully commissioned and operational State of the art equipment & automation giving us a competitive advantage Clear sales plan to achieve ramp up targets Strong local leadership team developed & in place 30
Slide 31: Coated Leaders
~ Coated Leaders 31
Slide 32: JESCO
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BlueScope Steel — Investor Presentation (November 2006) on 6ix