Bluescope Steel Limited · ASX:BSL
Bluescope Steel — BHP Steel — H1 FY2003 Earnings Presentation
25 slides from Bluescope Steel's earnings presentation, Feb 27, 2003
Slide 1: Half Year Results Presentation
Half Year Results Presentation Period Ended 31 December 2002 Kirby Adams Managing Director and Chief Executive Offic icer Brian Kruger, Chief Financial Officer a February, 2003
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 BHP STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE
Slide 3: BHP Steel Limited
ine Le ie oF Le Si TTD ii y Ve ne iva HP Steel Limited Cr on A we sic ore eee in Sie ao a sae ose Tg
Slide 4: A different kind of steel: creating shareholder value
ndustry. ult | C — inaDi ue tVa Shareholde __ Creating 7. o ide EL BHPSTE | ifferent kind of steel Ad BHP Sitesi Half Year 02/03 Presentation
Slide 5: Business Results
Business Results Half Year 02/03 Presentation -6 Months to 31 December 2002 vs. 2001 Our business is now larger and stronger Despatches (external) Revenue EBITDA EBIT EBIT Margin Net Cash Flow EPS Dividend ROIC Debt reduced Gearing +18% +13% +110% +250% From 4% +82% 0/40% Franking 52% From 18.2% to
Slide 6: Group Financial Overview
__ Group Financial Overview _ Performance vs. Scheme Booklet forecast Af Millions 1999A | 2000A ee 2003F | 2003-1H¢4) Revenue 4,849 4,898 4593 | 4913 | 2590 63%) Cashflow before 345 343 1009 borrowing and fax (4) — Scheme Booklet forecast BHP Sitesi Half Year 02/03 Presentation Page 6
Slide 7: Global Steel Market
Global Stee! Market - BHP Steel well positioned in an improving industry - Significant consolidation - Consolidation - Reduced production - Weak demand - Scrap/CIS - Section 201 - Weak demand / higher prices - Prices trending to world levels - Scrap / Venezuela yy Reasonable growth excluding Japan S
Slide 8: Diversity — First Half: Geographic and Product
Diversity — First Half : Geographic and Product oe ae oy Sy USA (NS BHPS) 36% ms PN NINA Coil RUMAH MI 2 26% BHP Sitesi Half Year 02/03 Presentation %
Slide 9: Australian Domestic Sales by Market Segment
Australian Domestic Sales by Market Segment 6 months to 31 December 2002 Automotive & Transport Construction 13% Non-Dwellings 24% Manufacturing 22% INC Construction Dwellings 20% Construction Infrastructure R 2% Mining 3% Sales - Dec 2001 Half 1,260k BH? test Sales - Dec 2002 Half 1 409k Half Year
Slide 10: Hot Rolled Coil cost position with global scale
the world in | producers ve iled Coil Cost Cu Hot Ro with global scale _ HoOLR * Is one of the 10 lowest cost Hot Rolled Co ion is posi inue fo retain th * Improvements cont BHP Steel PortKembia 2001 range 1997 <= auuoyy$ HUSA Compact Stip Production USA Infegrateds Ll 1 Compact Strip Produc! Conven
Slide 11: Business Excellence
__ Business Excellence * Productivity improvements across our businesses * Improving safety performance ‘nets 140 a 8 8 cy) 3 Bs 8 22 injuries z En resulting in time z = lost from work g & z 26 : ag 3 4 ‘98 200 20 0 aaa, a a a ‘20 Ereloyens Port Kom Steoincr) iePraducity Tonnes par person po yt) Inc
Slide 12: 50% joint venture in Delta, Ohio
50% joint venture in Delta, Ohio . 6 month net profit A$77m Voted No. 1 flat rolled steel supplier in North America in 2002 Jacobsen Survey (second in 2001) ° Annual production capacity increased from 1.42 to 1.63mtonnes (100% basis) Safety — new milestone, over 2 million work hours (approaching 3 y
Slide 13: Overriding objective - Create Shareholder Value
verriding objective - CREATE SHAREHOLDER VALUE * Focused on: —Flat steel products and solutions ~ Value-added coated, painted, branded products and services -Being an excellent supplier, manufacturer and a low cost operator — Disciplined capital management while selectively pursuing growth, includin
Slide 14: Organic growth strategy
d lemented an with imp Growth Organic tegy Focus on organic gro Stra oS — ic) oe SS Half Year 02/03 Presentation BHP Sitesi
Slide 15: Strategy - Asia - Core Growth Region
Strategy - Asia ~ Core Growth Region « Growing revenue and profits continue + Unique Asian footprint with multiple growth opportunities ~ Innovative - new products and solutions - Capacity growth A$ Millions i oD 2000 2001 2002 2002-1H 2003-1H “104 BHP Sitesi Half Year 02/03 Presentation
Slide 16: Our First Six Months
Our First Six Months . | « Active and engaged Board of Directors - Successful demerger and public listing - Strong corporate governance framework - Total shareholder return focus * Focused Management - Continued drive to reduce fixed and conversion costs — Greater focus on growing revenue = Organic
Slide 17: Financials
Slide 18: Profit and Loss
_—Profitand Loss ASMilions ‘999A 2000A = 201A» 2002 2002-4H(A) 2003-11() Revenue 4,849 4,898 4,941 4593 2,299 2,090 EBITDA) 925 711 568 412 221 464 EBIT) 257 445 305 160 95 332 Net Profit 242 EPS (¢) 30.6 ( Jncludes net profitloss for North Star BHP Stee/ fa} 19994 to and inchiding 20024 normalised
Slide 19: EBIT Variance
__EBIT Variance $23m S77m s83m S24m) ($9m) $332m (888m) 250 $134m A$ Millions 8 +60 som December 01 Export Prices Domestic Volume | Mx NSBHPS Conversion & Raw Material Exchange Other December 02 Half Prices Other Costs. Costs Rates Half BHP Sitesi Half Year 02/03 Presentation
Slide 20: Balance Sheet
Balance Sheet As at 31 December AS Mitons 2002 Pro-Forma 2001 Assets Cash 137 170 Receivables 508 433 Inventory 766 685 Other Assets 268 302 Net Fixed Assets 3,171 3,219 Total Assets 4,850 4,808 Liabilities Creditors 500 479 Interest Bearing Liabilities 352 779 Provisions 904 813 Total Liabilities 4
Slide 21: Capital Management
Capital Management * Tax effective returns to shareholders ¢ Share buyback — Up to 10% of ordinary shares (79.3m) - On market - During the next 12 months, but limited to 10 million up to first anniversary of public listing, subject to market conditions « Dividend — Interim — declared — 9¢ fully fran
Slide 22: Cash Flow
Cash Flow | AS mniltions 1999A 2000A 2001A 2002A 2002-4 (A) 2003-1 H(A) Net operating cash flow before 725 715 631 381 244 386 borrowing costs and income tax Net investing cash flows - Capital expenditure (191) (90) (105) (162) (67) (6) - Other (20) 10 (6) 8 1 339 Net cash flow before financing and
Slide 23: et)
et) BHP Sitesi Half Year 02/03 Presentation Page 23
Slide 24: BHP Steel... You have made the right choice
"BHP Stee... You have made the right choice ea it leis. BHP Sitesi Half Year 02/03 Presentation Page 24
Slide 25: Half Year Results Presentation
Half Year Results Presentation Period Ended 31 December 2002 Kirby Adams Managing Director and Chief Executive Offic icer Brian Kruger, Chief Financial Officer a February, 2003