Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (November 2004)
62 slides from Bluescope Steel's investor presentation, Nov 11, 2004
Slide 1: Coated Steel in China
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Slide 2: Presentation Overview
Presentation Overview. ¢ Business Strategy + Investment Discipline * Sales Operations * Product Portfolio * China Market Size * Sales & Marketing Development + Project Implementation BluaScope Steel China 11 November 2004 2
Slide 3: Presentation Overview
Presentation Overview - |Business Strategy ~~” + Sales Operations * Product Portfolio * China Market Size * Sales & Marketing Development * Project Implementation BlueScope Steel China 11 November 2004
Slide 4: BlueScope Steel Strategy: Downstream, Value-Added, Branded Products
~ BlueScope Steel Strategy: _ Downstream, Value-Added, Branded Products rin er perenne ” 2) Chao Xiao Yu Future : aS Wy ei 0 F Metal BluaScope Steel China 11 November 2004 4
Slide 5: China expansion timeline 2003-2006
Establish brand Acquire Butler _Lysaght sales office ———— - Grow Lysaght scale on oo Setup Lysaght __ Set up Lysaght ‘and capability + Beijing _ : ee : _. Shanghai : _meruiacuaig in- - manufacturing in Expand product oo Lysaght 2 anghai and ee . and solutions: products _ Guangzhou _ Belling capabili
Slide 6: China versus SE Asia
- China versus SE Asia Chao Xiao Yu Business development by seeding and backward integration Target market in Building and Construction Local feed sources Niche position in Premium segment Selected customer base ZINCALUME® steel and TRUZINC® steel “Show Case’ facilities 100% BSL-owned BluaScope Stee
Slide 7: The Strategy: Produce in China and do more of the same
‘The Strategy: Produce in China and “do more of the same” Branded Products Direct to Customer Branded Products Via Distributors Unbranded Products Via Distributors Low Middle Premium Segment Segment Segment BlueScope Steel China 11 November 2004 Ek Ay ff] Chao Xiao Yu The Strategy builds upon an est
Slide 8: China Coating Project
/ China Coating Project Chao Xiao Yu BlueScope Steel (Suzhou) Co Ltd TER AM ER GOIN) FT BR Za] * Metallic coating and painting plant approved by BSL Board 18 February 2004 Lagat Buwainesy * Capital cost AUD280 million ft Die Pemihincly Aarel after Soles Service, * Located in Suzhou, Jiangsu f= ip 4]
Slide 9: Concept, Pre-Feasibility and Feasibility Studies
Concept Study Oct-Nov 2002 + Evaluate options * Develop the strategy concept BlueScope Steel China 11 November 2004 Sheree _|Pre-Feasibility Study | . Feb-Aug 2003 + Internal market study verified by market study by international consultant + Independent Peer Review team assessment + Select preferre
Slide 10: Equipment Supplier
Chao Xiao Yu ~ Equipment Supplier / Mee process equipment supplier i is” - SumitomoKawasek! Partnership (same as By) Design and manufacturing underway : Opportunites for standardisation with BSV BluaScope Steel China 11 November 2004 10
Slide 11: BlueScope Steel China November 2004
BlueScope Steel China 11 November 2004 Chao Xiao Yu 11
Slide 12: Suzhou Industrial Park
_ SuzhouindusiialPark =ssi(‘<‘aist;st”t”té<“<‘“C‘CSSCS ee... lrt—(i—i—O ne yn ny i us Chao Xiao Yu BluaScope Steel China 11 November 2004 12
Slide 13: Slide 13
Slide 14: Optional Plot
Chao Xiao Yu im Optional Plot xt 254093sqm TAI gs ae 77 Main Road \.Main Road BluaScope Steel China 11 November 2004 14
Slide 15: ee rrt—s—~Ssi_a
ee rrt—s—~Ssi_a Ori‘ OO Chao Xiao Yu Nae BlueScope Steel China 11 November 2004 15
Slide 16: YEE COMI LOS DIMI EES OR SME SOUP
YEE COMI LOS DIMI EES OR SME SOUP Le LLY LI I i a Le a Ie Te, @~=~—E—r—“——OS—Ss—sésS<‘(‘— 7 . a Le _ : Ve CC ” . - - _ a 1. is )—h—hhhrtrté—‘_O™O_O —r—“—=—™—C—C—C [7 : 7 = —rtr—“‘—“_sS<—s<‘—ie 7 a Cee” _ | 7 ~=—hreres—seSC=*” _ _ - - LD Lo 7 _ Wi ae j . a _. yy, wy y . Cheo Xiao Yu EE Steel China lo
Slide 17: Targeted Customers
Targeted Customers Chao Xiao Yu ititittit i) BlueScope Lysaght __BlueScope Butler BlueScope Steel China 11 November 2004 7
Slide 18: BlueScope Steel China
BlueScope Steel China So fal "| Chao Xiao Yu -————_ Distributor Contractor [| — Project + Owner BlueScope Coated ae BlueScop Butler & BlueScope Lysaght Steel Steel (Suzhou) China v The China Businesses ~ working together to provide steel solutions to the market ! BluaScope Steel China 11 November 20
Slide 19: Supply Sources
_ Supply Sources Pe AN ffi) Chao Xiao Yu Majority locally al Produced a os : =< __ Coating | Solutions >|. Solutiens sore | = Imported _Lysaght & cre Domestic Bar VARA I II bali ‘Butler & Plate for Je Beam Manufacture Imported : Coated & A Painted steel (specifications not produced at Suzhou) BluaSc
Slide 20: Presentation Overview
Presentation Overview = * Business Strategy [SaesOpeains * Product Portfolio « China Market Size * Sales & Marketing Development * Project Implementation BluaScope Steel China 11 November 2004 20
Slide 21: Coated Steel China Office and Warehouse Locations
Coated Steel China Office and Warehouse Locations In market service offer : * 11 Offices @ 2 Warehouses Ex-stock Small coil sizes Standa Qingdao Shanghai . Miamen Guangzhou Hong Kong BluaScope Steel China 11 November 2004 21
Slide 22: Presentation Overview
* Business Strategy * Sales Operations - |Product Portfolio « China Market Size * Sales & Marketing Development * Project Implementation BluaScope Steel China 11 November 2004 22
Slide 23: Building with Colorbond Steel
~ Building with COLORBONDS Steel Strong Performance after 20 Years BlueScope Steel China 11 November 2004 ‘xP BHPRRAHE RS SLATER SRA ARENA AED UPAR, ROR ANT AR, HE RTA AAR, RAMS RAE, MURAD, RARTRERRA AMUN). RINT, BRP ATP AWARE « RMERNSMM RRA, RRR 23
Slide 24: Building with Colorbond Steel
‘Building with COLORBOND® Steel BER VARA. RR EET ee ee | PUMERPARREMRRRMMCE eat, ee ee ed SEALER, «MN, pEPAMMeAteemEAES, 2 TPN, EDK LISTE. ma | SPAM. RORREAT AA. Project Over 15 Years Old BluaScope Steel China 11 November 2004 24
Slide 25: Product Portfolio
~ Produet Portfoli | ZINCALUME® Steel Clean COLORBOND® Steel + Clean COLORBOND XRW + Clean COLORBOND XPD + Clean COLORBOND ULTRA + Clean COLORBOND METALLIC COLORGRAIN® Designer Steel OPAL® Steel BlueScope Steel China 11 November 2004 25
Slide 26: Flagship Metal Coated Product
“Flagship Metal Coated Product. Zincalume Atmospheric exposure tests confirm in correct application, corrosion resistance is far superior to that of ordinary zinc coating, lasting up to four times longer in an identical environment. BluaScope Steel China 11 November 2004 26
Slide 27: Flagship Painted Product
Flagship Painted Product . UTE NN WR pemarmm Colerbond * Superior Corrosion Resistance * Excellent Color Retention * Resistance to Dirt Staining BluaScope Steel China 11 November 2004 27
Slide 28: Product Positioning
Product Positioning = Colerbond Zincalume High ad mn . / y \ Medium Low BluaScope Steel China 11 November 2004 28
Slide 29: Guangzhou New Airport
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Slide 31: International Convention Center, Dongguan, Guangzhou
LO Up De International Convention Center, Dongguan, Guangzhou
Slide 32: Slide 32
Slide 33: Shanghai BaoSteel Krupp Stainless Steel
Shanghai BaoStee| Krupp Stainless Steel
Slide 34: Siemens, Xian
Be || Nil ei ee Siemens, Xian
Slide 35: Fu Chun Shan Villa, Hangzhou
TERE: Fu Chun Shan Villa, Hangzhou
Slide 36: Presentation Overview
_ Presentation Overview * Business Strategy * Sales Operations * Product Portfolio China Market Size_ * Sales & Marketing Development * Project Implementation BluaScope Steel China 11 November 2004 36
Slide 37: Crude Steel Consumption (China versus World)
Crude Steel Consumption (China versus World) f China m Others BluaScope Steel China 11 November 2004 37
Slide 38: Crude Steel Consumption in China
Crude Steel Consumption in China Million tonnes per year ¥2000 Y2001 ¥2002 Y2003 BluaScope Steel China 11 November 2004 38
Slide 39: Domestic GI Steel Consumption
“Domestic Gl Steel Consumption (includes EGI). peo wo +-} OF DoD NN OD Million tonnes per year ae Qo Y1999 ¥2000 Y2001 ¥2002 Y2003 —e— Domestic Production «ui IMport je Consumption BluaScope Steel China 11 November 2004 39
Slide 40: ad on bo — OQ ao Million tonnes per year a OQ BlueScope Steel
ad on bo — OQ ao Million tonnes per year a OQ BlueScope Steel China 11 November 2004 40
Slide 41: Presentation Overview
__ Presentation Overview * Business Strategy * Sales Operations * Product Portfolio « China Market Size » [Sales & Marketing Development — * Project Implementation BluaScope Steel China 11 November 2004 4
Slide 42: Core Customer Strategy
: ‘ore Customer Strategy — BluaScope Steel China 11 November 2004 42
Slide 43: Core Customer Strategy
Core Customer Strategy BluaScope Steel China 11 November 2004 43
Slide 44: Customer Base Growth
Customer Base Growth % Growth YOY No. of Customers BluaScope Steel China 11 November 2004 44
Slide 45: Market Contacts
Market Contacts Coated Roll Former Contractor Project Owner Steel China FRAT FAL, bE Design Institutes Be Bi BluaScope Steel China 11 November 2004 45
Slide 46: Brand Awareness Growth
- Brand Awareness Growth in SERS HR tS 58 Brand Awareness BlueScope Steel China 11 November 2004 -Colerbond 80% 70% 60% 50% 40% 30% 20% 10% 0% 46
Slide 47: Seminars
Seminars Themes Y¥2000 Clean COLORBOND® launch * 5 rounds of seminars, Y2001 Sydney Olympics * 72 seminars * Covered 24 cities Y2002 Green Steel Y2003 Steel Building Design Flexibility Y2004 New Company Image + Approximately 6000 people have attended seminars + Seminar attendees: 40% architects, 35%
Slide 48: Community Involvement
Community Involvement ee i. cl Children’s Rugby Day « WE ae BlueScope Steel China 11 November 2004
Slide 49: Community Involvement Shanghai Handicap Sports Games
Community Involvement 68 Shanghai Handicap Sports Games BluaScope Steel China 11 November 2004 49
Slide 50: Business Overview
Business Overview * Business Strategy * Sales Operations « Product Portfolio « China Market Size * Sales & Marketing Development + [Project Implementation BluaScope Steel China 11 November 2004 50
Slide 51: Project KPIs
Proje ctKPls Chao Xiao Yu Safet Zero fatalities Zero fatalities y LTIFR < 1.2 LTIFR = 0 On time hedul i Schedule Accelerated schedule On time Cost Budget On Budget Full plant operations Mid 2006 BlueScope Steel China 11 November 2004 51
Slide 52: Project Team
"Project Team fq Recruited externally M_ Mandarin speaking President fE]m Bill Moss ee Chao Xiao Yu Regional Support The China Regional Team provides strong support for this and other growth projects VP Customer 9 Logistics Engineering Engineering Manager Manager Infrastructure Process Supervisory &
Slide 53: Site Layout
Site Layout _ ep fA] | Chao Xiao Yu awe Jad ‘we if! a] ii = _ $ “i Wharf = crcl] | 8 | lie Admin = =) LBtord la | if! Complex : ; Wiz ; — { | | = Soo Ha is Z 4 MCL1 & 2 (future) Ht o: oF — =e erat yi BluaScope Steel China 11 November 2004 53
Slide 54: Groundbreaking April 2004
- Groundbreaking 22 April 2004 Chao Xiao Yu BluaScope Steel China 11 November 2004 54
Slide 55: BlueScope Steel China November 2004
Ye BlueScope Steel China 11 November 2004 55
Slide 56: Piling Commenced July 2004
Piling Commenced 14 July 2004 BlueScope Steel China 11 November 2004 i) i i ie NI OMI ay ian iii Hin Chao Xiao Yu East 56
Slide 57: Piling to Complete by end November 2004
Piling to Compete byen end: November 2004 BlueScope Steel China 11 November 2004 unig ie oo A ey Wee ! ce 57
Slide 58: ffi
ffi Chao Xiao Yu sa oA Git BluaScope Steel China 11 November 2004 58
Slide 59: BSL Project Review Process
SL Project Review Process BlueScope Steel | = Asia ELT Quarterly Review | Quarterly Project Review Monthly Capital. | _ (following slide) Development Report | Monthly Project Reports Monthly Review Regular Informal Reviews BluaScope Steel China 11 November 2004 59
Slide 60: Asia Project Review Process
Asia Project Review Process ee | Chao Xiao Yu Project Review A quarterly review of major coating projects (Thailand, Vietnam and China) by BlueScope Steel Asia management Review Team President Asian. B&MM VP Finance Asian B&MM VP Ops& Engineering Asian B&MM Corporate Counsel Asian. B&MM . . VP Capit
Slide 61: Suzhou Team Review
Suzhou Team Review Project Team management meeting HSE Govt/Community Construction Schedule « Costs « Resources « Risks/Issues Engineering Review Procurement Review Weekly project update BlueScope Steel (Suzhou) team management meeting = HSE * Govt/Community « Marketing/Sales « Finance/Funding « Man
Slide 62: Thank You
it ay Xie Xie Thank You
BlueScope Steel — Investor Presentation (November 2004) on 6ix