Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (November 2012)
51 slides from Bluescope Steel's investor presentation, Nov 21, 2012
Slide 1: Investor Briefing – Global Building Solutions
For personal use only Investor Briefing – Global Building Solutions Bob Moore – Chief Executive, Executive Global Building Solutions Justin Powell – VP Finance, Global Building Solutions 21 November 2012 BlueScope Steel Limited. ASX Code: BSL 1
Slide 2: Important notice
Important notice For personal use only THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, 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 A
Slide 3: Agenda
Agenda For personal use only Introduction – History – Business Structure – Footprint Markets, Products, Value Proposition B i Business segmentt direction di ti Summaryy Q&A 3
Slide 4: Introduction
For personal use only Introduction 4
Slide 5: BlueScope has a long history in building solutions
BlueScope has a long history in building solutions... For personal use only 1901 B tl M Butler Manufacturing f t i established t bli h d iin the th Kansas K Cit City, Mi Missourii 1948 Varco Pruden Buildings established in Pine Bluff, Arkansas as R.G. Varner Steel Products 1996 Butler enters China a
Slide 6: Global Building Solutions segment established to unite Building Solutions businesses
...and the Global Building Solutions segment has been established to unite BlueScope’s Building Solutions businesses and accelerate growth For personal use only Gl b l Building Global B ildi S Solutions l ti Buildings North Solutions Building Buildings g Asia Global Accounts A America i A t li Austr
Slide 7: BlueScope Global Building Solutions strategic objectives
BlueScope Global Building Solutions strategic objectives For personal use only • Accelerate growth in building solutions to industrial and commercial building segment by: Building Solutions – expanding the sales, installation and construction network for delivery of buildings on a global basis Marke
Slide 8: An experienced management team is in place
An experienced management team is in place... For personal use only Bob Moore (ELT) Chief Executive, Global Building Solutions Stewart Dellar Dan Kumm Bernie Landy Craig Smith President, President, President, General Manager, Buildings Asia Buildings North America Building Products China Solutions A
Slide 9: Manufacturing, engineering and sales footprint
...and our unrivalled manufacturing, engineering, and sales footprint creates a strongg foundation to leverage g from For personal use only Gl b l B Global Building ildi S Solutions l ti footprint f t i t China • 4 x Buildings manufacturing facility1 • 4 x Lysaght manufacturing facility • 1 x Metal
Slide 10: Buildings Asia – Footprint
Buildings Asia – Footprint For personal use only Manufacturing facility Tianjin Sales office • 1 x Manufacturing facility Note: China sales offices are not marked Xi’an Shanghai • 1 x Manufacturing facility • 1 x Manufacturing facility Guangzhou • 1 x Manufacturing facility Thailand • 1 x Manufactur
Slide 11: Buildings North America – Footprint
Buildings North America – Footprint For personal use only Evansville • 1 x Manufacturing facility Annville • 1 x Manufacturing facility St Joseph • 1 x Manufacturing facility Visalia • 1 x Manufacturing facility Jackson • 1 x Manufacturing facility San Marcos • 1 x Manufacturing facility Laurinburg
Slide 12: Solutions Australia – Footprint
Solutions Australia – Footprint For personal use only Manufacturing facility Sales office Greater Perth • 1 x Buildings manufacturing Brisbane facilityy • 1 x Water manufacturing • 1 x Permalite sales office facility • 4 x Highline sales offices Newcastle • 1 x Ranbuild sales office Bunbury • 1 x Hi
Slide 13: Building Products China – Footprint
Building Products China – Footprint For personal use only Langfang • 1 x Lysaght manufacturing Suzhou facilityy • 1 x Coating and painting facility Xi’an • 1 x Lysaght manufacturing Shanghai facility • 1 x Lysaght manufacturing facility Chengdu Guangzhou • 1 x Lysaght manufacturing facility • 1 x Ly
Slide 14: World-class facilities… Evansville, WI, USA
World-class facilities… Evansville, WI, USA For personal use only 14
Slide 15: World-class facilities… Guangzhou, China
World-class facilities… Guangzhou, China For personal use only 15
Slide 16: World-class facilities… Suzhou, China
World-class facilities… Suzhou, China For personal use only 16
Slide 17: Efficient manufacturing operations – Engineered Buildings
Efficient manufacturing operations – Engineered Buildings Purlins For personal use only 3 plate 3-plate Roll forming 17
Slide 18: Efficient manufacturing operations – Building Products China
Efficient manufacturing operations – Building Products China For personal use only MCL Packaging 18
Slide 19: New state-of-the-art facility under construction in Xi'an, China
Also, a new state-of-the art facility is under construction in Xi’an, China For personal use only • Global Building Solutions new manufacturing facility is being developed in Xi’an, Western China, to support plans for increased economic expansion in the Chinese interior • Construction began in Janua
Slide 20: Xi'an facility
For personal use only Xi’an facility 20
Slide 21: Markets, products and value proposition
For personal use only Markets, products and value proposition 21
Slide 22: The market opportunity is significant
The market opportunity is significant For personal use only Total addressable Building Solutions market = $56b1 $4B $9B $10B $2B $6B $6B Rest of the world $2B (markets <$1b) $$1B $14B Source: IHS Global Insights; 1Building Solutions addressable market determined as a proportion of total steel commer
Slide 23: A broad portfolio of leading Building Solution brands / products
A broad portfolio of leading Building Solution brands / products For personal use only B ildi Buildings Asia A i Buildings North America Solutions Australia Global Accounts Saudi Building Systems Building Products China 23
Slide 24: A footprint to offer in-market service to almost two thirds of the addressable market
A footprint to offer in-market service to almost two thirds of the addressable market For personal use only BlueScope is the engineered building solutions market leader i the in th two t largest l t markets k t – China Chi and dNNorth th America A i $4B $9B $10B $2B $6B $6B $2B $$1B In-market presen
Slide 25: New Global Accounts team to deliver engineered building solutions globally
A new Global Accounts team will leverage our strong brand reputations and p g footprint operating p to deliver engineered g buildingg solutions on a gglobal scale For personal use only R Recent t projects j t Russia Customer HQ: Russia Sector: Sports/Recreation Supply from: North America Ivory Coast
Slide 26: So what is an engineered building solution?
So what is an engineered building solution? For personal use only Engineered Building Solution Conventional steel building 9 Engineered solution 8 Basic designs using hot using tapered beams and rolled long sections columns 8 Inefficient steel use – 9 Efficient steel use – steel steel volume where i
Slide 27: Example – Engineered Building Solution vs. conventional
For personal use only Example – Engineered Building Solution vs. conventional Steel Usage g Comparison Conventional BlueScope kg/sqm design Bldg Solution Roof Beams 32.0 10.6 Columns 13.3 9.5 TOTAL STEEL 45.3 20.1 • 40ksqm project in Nigeria for FMCG manufacturer • Major M j costt saving i ddesign i
Slide 28: How does BlueScope differentiate its engineered building solutions businesses?
How does BlueScope differentiate its engineered building solutions businesses? For personal use only A unique value proposition through Global Accounts ‘Breakthrough’ Breakthrough results with strategic relationships Better technology and a focus on innovation 28
Slide 29: A Global Accounts example – Span/Costco
A Global Accounts example – Span/Costco For personal use only BlueScope, Bl S Span S and dMMulvanny l G2 design d i andd build b ild Membership warehouse retailer – Costco warehouse outlets worldwide seventh largest retailer in the world 9 Strategic partnership since 1989 9 891 projects completed to
Slide 30: 'Breakthrough' results – reduced construction times
‘Breakthrough’ results – BlueScope’s strategic relationships have pproven to deliver significantly g y reduced construction times For personal use only Building shell close-in time (Days) Days 180 180 Over 100 projects totalling greater 160 150 than 6.5 million sqm for large, 140 multi-national lti
Slide 31: 'Breakthrough' results
‘Breakthrough’ results For personal use only 110,000 sqm facility erected in 28 working days 31
Slide 32: Innovation – Day lighting product
Innovation – Day lighting is a recently introduced BlueScope product that is faster to install,, pprovides better build qquality, y, and is ‘green’ g For personal use only • Reduces electrical lighting consumption and lighting costs up to 70% when integrated with y control systems design g • Prismat
Slide 33: Technology – The Vision Engineering System
Technology – The Vision Engineering System For personal use only • The Vision Engineering system is an industry leading building design and detailing system • Efficient Effi i andd cost competitive i i steell ddesign i andd detailing • Reduced R d d engineering i i costs t • Increased speed to marke
Slide 34: BlueScope Building Solutions customers
BlueScope Building Solutions customers For personal use only 34
Slide 35: Example projects – manufacturing
Example projects – manufacturing For personal use only 35
Slide 36: Example projects – retail / warehousing
Example projects – retail / warehousing For personal use only 36
Slide 37: Global Building Solutions segment direction
For personal use only Global Introduction Building Solutions segment direction 37
Slide 38: External Despatch history (kt)
External Despatch history (kt) For personal use only Buildings g Asia Building g Products China 300 150 Focus on profitable external 275 Strong China industrial channel development in Coated expansion 274 125 132 125 250 249 113 225 100 105 221 200 199 83 75 175 175 150 50 FY2008 FY2009 FY2010 FY201
Slide 39: Underlying EBIT history (A$M) and EBIT Margin (%)
Underlying EBIT history (A$M) and EBIT Margin (%) For personal use only Buildings g Asia Building g Products China 40 8.0% 25 9.0% Margin % (RHS) 35 Driven by increasing volumes and 7.0% 20 Post startup, 23 7.0% improved price/margin controls 15 improvement on better 19 19 5.0% 30 6.0% 30 10 mix and
Slide 40: Aim to profitably double GBS segment sales volumes by FY2015
Aim to profitably double GBS segment sales volumes by FY2015 For personal use only Sales Revenue (A$M) Varco Pruden acquired Impact of GFC begins 3,000 3,000 6.0% February 2008 (IMSA EBIT% acquisition) North American 2 500 2,500 volumes halved, 5 0% 5.0% First full year of Butler 2,018 compared to p
Slide 41: Growth will come in four key areas
Growth will come in four key areas For personal use only Global Accounts • Building a new line of sales through our unique Global Accounts offer • Explore expansion into new global geographies Continued ggrowth at • Strongg industrial and commercial ggrowth forecasts across the Asian region g Buildi
Slide 42: Buildings Asia
Buildings Asia For personal use only Sales segments Highlights g g Chemical & Energy Auto 21% 13% Salesforce & • ~40 Sales offices across Asia 7% Food Market • Direct sales at local level to identify/qualify leads and quotation plus provides technical sales 6% Electronics support as needed 6% • Pref
Slide 43: Buildings North America
Buildings North America For personal use only Sales segments Highlights Community Builder • 2000+ Licensed builder/dealers (GSA, churches and schools) 24% Network & • BBNA works with the builders to quote each Market project plus provides technical sales support as eeded needed • Prefer to service r
Slide 44: Buildings Products China
Buildings Products China Highlights For personal use only Salesforce & • Leveraging 32 sales offices across China for direct Market sales and sales support • Coated Suzhou – Enhancing Distribution network to improve sales andd mix i – Work closely with Buildings China and Lysaght to maximize the ent
Slide 45: Performance in FY2013 so far
Performance in FY2013 so far For personal use only • Buildings Asia − Margins sustained, but volume growth temporarily weakened. Anticipate solid volume improvement in 2H FY2013 • Buildings North America − Continued improvement driven by better margins post-restructuring. Strong backlog • Building P
Slide 46: How we will grow
How we will grow For personal use only 9 Ramp up Global Accounts sales 9 Leverage existing resources and capabilities to manage costs 9 Focus on innovation and differentiation 9 Ut Utilizee tec technology o ogy 9 Identify and add people needed to close capability gaps 9 Enhance the footprint to supp
Slide 47: How will we service the planned growth
How will we service the planned growth For personal use only • Frames fabrication is generally considered the capacity constraint – it is the most resource (PP&E and labour) consumptive activity • Capacity limits are not as restrictive as in steel manufacturing − As new Buildings manufacturing facil
Slide 48: Summary
For personal use only Summary 48
Slide 49: Global Building Solutions segment recap
Global Building Solutions segment recap For personal use only • We are the Engineered Building Solutions market leader in the two largest construction markets − All GBS businesses have been restructured to manage profitability at cycle lows and are positioned to capture the upside of continued indus
Slide 50: Q&A
For personal use only Q&A Introduction 50
Slide 51: Investor Briefing – Global Building Solutions
For personal use only Investor Briefing – Global Building Solutions Bob Moore – Chief Executive, Executive Global Building Solutions Justin Powell – VP Finance, Global Building Solutions 21 November 2012 BlueScope Steel Limited. ASX Code: BSL 51
BlueScope Steel — Investor Presentation (November 2012) on 6ix