Bluescope Steel Limited · ASX:BSL
Bluescope Steel — FY2017 Earnings Presentation
83 slides from Bluescope Steel's earnings presentation, Aug 21, 2017
Slide 1: FY2017 Financial Results Presentation
For personal use only FY2017 Financial Results Presentation Paul O’Malley, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 21 August 2017 BlueScope Steel Limited. ASX Code: BSL
Slide 2: Important Notice
Important Notice For personal use only 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.
Slide 3: FY2017 Headlines
For personal use only FY2017 HEADLINES
Slide 4: Safety: target to improve global performance in FY2018
Safety: target to improve global performance in FY2018 For personal use only Lost time injury frequency rate Medically treated injury frequency rate 16.0 60.0 14.0 52.2 Medically treated injuries per million man-hours worked 47.1 Lost time injuries per million man-hours worked 8.0 29.1 22.4 21.9 4.8
Slide 5: Underlying EBIT up 89% over FY2016 – best since 2008
Underlying EBIT up 89% over FY2016 – best since 2008, with Asian HRC spreads 50% lower For personal use only Up $521.2M Best since Underlying EBIT $1,105.0M on FY2016 2008 $1,131.2M on a ‘guidance’ basis including Taharoa1 EBIT return on Up from 9.6% Best since invested capital 18.5% in FY2016
Slide 6: Strong cash flow – allowing debt reduction, dividends and buy-backs
Strong cash flow – allowing debt reduction, payment of dividends and buy-backs For personal use only Free cash flow Up $111.2M (Operating cash flow less capex) $749.3M on FY2016 Best since 2008 $150M buy-back Announced Dividends: Capital completed; management framework in February 4.0cps inter
Slide 7: Underlying EBIT results from all segments materially stronger
Underlying EBIT results from all segments materially stronger For personal use only Australian Steel Products North Star $459.4M 27% $406.6M 178% • $300M cost reductions • 100% ownership • 71kt production increase Building Products ASEAN, Nth Am & India BlueScope Buildings $201.7M 35% $64.0M 30% • N
Slide 8: Sustainability Update
For personal use only SUSTAINABILITY UPDATE
Slide 9: Our Bond
OUR BOND WE AND OUR CUSTOMERS PROUDLY BRING INSPIRATION, STRENGTH AND COLOUR TO COMMUNITIES WITH BLUESCOPE. OUR CUSTOMERS “RE OUR PARTNERS. Our success depends on our customers and suppliers choosing us. Our strength lies in working closely with them to create value and trust, together with superior
Slide 10: Delivering material reductions in carbon emissions
Delivering material reductions in carbon emissions For personal use only • >40% reduction in annual Australian CO2 emissions since FY2011 • Cumulative reduction of 34mt CO2 emissions in Australia since FY2011 • We support real action to reduce energy consumption and carbon emissions • There is both
Slide 11: Australia's energy challenge – affordability and reliability
Australia’s energy challenge – policy must ensure affordability and reliability • Australia’s generation mix is comparable to key economies – eg 70-80% baseload production and average 17% renewable/hydro For personal use only • Australia has the least flexibility in baseload mix: – Gas generation pr
Slide 12: Australia's energy challenge – $7 billion cost impost and rising
Australia’s energy challenge – $7 billion cost impost and rising For personal use only Electricity Gas • Hazelwood closure with little notice reduced • East coast gas market is not transparent to baseload capacity customers: • Finkel Review delivers long term but won’t fix – lack of availability of
Slide 13: Governance – a core responsibility for Board and Management
Governance – a core responsibility for Board and Management For personal use only • In our Company charter – Our Bond – we recognise that our success depends on our customers and suppliers, our people and our communities, and that our strength is choosing to do what is right. • We promote a culture
Slide 14: Diversity – a multi-year program delivering results
Diversity – a multi-year program delivering results For personal use only • Goal of increasing workforce diversity to reflect the diversity in each community in which we operate • Recruitment of females across all roles within BlueScope increased significantly in 2017 • Recruitment of females into o
Slide 15: Strategic Position
For personal use only STRATEGIC POSITION
Slide 16: Delivery on our strategy
Delivery on our strategy For personal use only Grow Deliver Ensure ongoing premium branded steel businesses competitive commodity steel supply financial strength with strong channels to market in our local markets Coated & Painted BlueScope North Star Australia & NZ Balance Sheet Products Buildings
Slide 17: Good financial performance
Good financial performance Underlying EBIT (group) Underlying return on invested capital For personal use only 1,105 18.5% $M 329 6.5% (215) -4.2% FY2012 FY2015 FY2017 FY2012 FY2015 FY2017 Underlying EPS Free cash flow (operating cash flow less capex) 114 749 cents per share $M 29 154 38 (8) FY2012
Slide 18: Pivot in our sales mix – increasing value-added products
Pivot in our sales mix – increasing contribution from value- added products BlueScope despatch volume mix For personal use only 100% BlueScope Buildings 80% Building products Higher value added Australia cold rolled 60% and coated & painted 40% High performing, North America steelmaking cost competi
Slide 19: Better earnings mix and lower relative exposure to commodity fluctuations
… giving a better earnings mix and lower relative exposure to commodity fluctuations … For personal use only Underlying EBITDA by segment ($M) BlueScope 1,485 Buildings 106 1,374 • Building Products segment increased 49 264 Premium by 150% BP segment 100 branded products • BlueScope Buildings segmen
Slide 20: Broader geographic diversity
… and broader geographic diversity. BSL a globally competitive company For personal use only Underlying EBITDA by region ($M) New Zealand New Zealand $119M $103M Asia Asia $95M 8% 7% $191M 7% 12% Australia North America 15% 41% $638M $209M Improved geographic diversity 70% Australia 41% $991M North
Slide 21: Clearly stated financial principles to support decision making
Clearly stated financial principles to support decision making and investment For personal use only Return hurdles • Every BlueScope business needs to deliver ROIC • Management and employees are incentivised within each business to deliver ROIC targets Investment timing • BlueScope intends to have t
Slide 22: Capital management
Capital management For personal use only Dividend and buy- • In February 2017 the Board announced a 4.0 cents per share fully franked interim back dividend and a $150M on-market buy-back – The buy-back was completed in June 2017, with 12.78M shares bought at an average of $11.74 per share – Also, ne
Slide 23: Anti-dumping and s232
Anti-dumping and s232 U.S. anti-dumping and s232 Australian anti-dumping For personal use only • In April, U.S. Department of Commerce (DOC) initiated • Regular reviews of product and importer investigation into the effects of steel imports on U.S. national treatment under the Australian dumping sec
Slide 24: Segment Financial Results
For personal use only SEGMENT FINANCIAL RESULTS
Slide 25: ASP underlying EBIT up 27% on productivity improvements
ASP underlying EBIT up 27% on productivity improvements, planned cost savings and higher spreads For personal use only Underlying EBIT ($M) Comments on FY2017 459.4 • Productivity improvements and cost savings, particularly: – Improved manufacturing conversion costs with better 361.4 manufacturing p
Slide 26: Continued focus on customer engagement underpinning Australian demand
Continued focus on customer engagement is underpinning Australian demand For personal use only Total Australian external domestic despatch volumes (Kt) 1H FY15 2H FY15 1H FY16 2H FY16 1H FY17 2H F17 • A significant proportion of product goes to alterations and Total construction % shown in red addit
Slide 27: ASP delivered $300M productivity improvement and cost savings
ASP delivered $300M productivity improvement and cost savings in FY2017 For personal use only Savings over FY2015 cost base Composition of FY2017 savings FY2016 achieved $235M Overheads etc R&M and 1H FY2017 achieved ~$150M manufacturing 10% 20% Production 2H FY2017 achieved ~$150M efficiencies / 25
Slide 28: ASP's profitability improved through productivity initiatives
ASP’s profitability improved considerably through productivity initiatives, even at “bottom of the cycle” spreads For personal use only ASP EBITDA per tonne vs spread Underlying 400 Bottom of cycle EBITDA per spreads1 tonne 350 FY05 A$/t 300 250 FY17 FY04 FY08 200 FY16 FY07 FY06 150 FY03 FY15 100 FY
Slide 29: North Star underlying EBIT up 178%
North Star underlying EBIT up 178% on stronger spreads, 100% ownership and lower conversion costs US$M underlying EBITDA 1 Segment underlying EBIT – North Star 100% Comments on FY2017 For personal use only 406.7 348.3 • Spread up strongly compared to FY2016 – indicatively US$332/t vs US$237/t 195.4
Slide 30: North Star: further low-capital incremental expansion
North Star: further low-capital incremental expansion For personal use only North Star despatches since commencement (100% basis) +86% Further 2,000 incremental capacity expansion in progress 1,500 Metric kt GFC 1,000 500 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16 Delivered majority of goal o
Slide 31: North Star – earnings relatively consistent through the cycle
North Star – earnings relatively consistent through the cycle, noting annual variability. Averaged 90% conversion of EBITDA to cash over last six years For personal use only US$M EBITDA and spread1 350 U.S. mini-mill spread 340 250 324 EBITDA (100% basis) Cash flow (EBITDA less capex) 295 300 278 20
Slide 32: Building Products underlying EBIT up 35%
Building Products segment underlying EBIT up 35%; North America (Steelscape & ASC) substantial improvement For personal use only Underlying EBIT ($M) Comments on FY2017 201.7 • North America: benefit from higher U.S. west coast coated steel prices, volumes and favourable inventory pricing (contribut
Slide 33: Coated & painted projects in process and under evaluation in Asia
Coated & painted projects in process and under evaluation in Asia; to be funded from free cash flow • Continued investment in products, brands and channels to grow sales to the For personal use only Retail/SME products retail/SME markets in each country Home appliance steels • Gaining customer accep
Slide 34: BlueScope Buildings underlying EBIT up 30%
BlueScope Buildings underlying EBIT up 30%; productivity benefits in North America. China Buildings breakeven in 4Q FY2017 Underlying EBIT ($M) Comments on FY2017 For personal use only • Engineered Buildings North America: 64.0 – 51% underlying EBIT increase driven by delivery of 49.2 productivity s
Slide 35: China Buildings restructured; reached breakeven in 4Q FY2017
China Buildings restructured; reached breakeven in 4Q FY2017. Buildings North America has delivered most of its productivity improvements For personal use only China • China Buildings major manufacturing transformation delivering results in 4Q FY2017: Transformation – Reduced framing footprint from
Slide 36: New Zealand & Pacific Steel underlying EBIT up $101.4M
New Zealand & Pacific Steel underling EBIT up $101.4M on productivity initiatives and improved steel prices For personal use only Underlying EBIT1 ($M) Comments on FY2017 61.1 • Productivity improvements and cost savings, particularly: – Labour, manufacturing, repairs & maintenance and overhead 47.5
Slide 37: New Zealand / Pacific NZ$80M savings in FY2017
New Zealand / Pacific NZ$80M savings in FY2017. Targeting further savings in FY2018 For personal use only Savings over FY2015 cost base Composition of FY2017 savings FY2016 achieved NZ$45M 1H FY2017 achieved ~NZ$33M Raw materials and overheads 20% R&M and manufacturing 35% 2H FY2017 achieved ~NZ$47M
Slide 38: Group Financials
For personal use only GROUP FINANCIALS
Slide 39: Underlying EBIT variances
Underlying EBIT variances Net spread increase $139.2M 1,105.0 For personal use only 8.1 331.4 268.9 (386.4) 26.9 78.1 583.8 194.2 North Star and TBSL: Raw material costs: North Star 260 Coal (189) TBSL 9 Iron ore (19) Conversion & other costs: Scrap, alloys & coating metals (87) Volume / lower per u
Slide 40: Underlying earnings and net finance cost
Underlying earnings and net finance cost For personal use only $M FY2016 FY2017 2H FY2017 Significant EBIT growth Underlying EBIT 583.8 1,105.0 527.3 Underlying finance costs (89.7) (86.9) (41.0) Interest revenue 5.2 6.2 3.0 Profit from ordinary activities before tax 499.3 1,024.3 489.4 28.3% effect
Slide 41: Continued strong cash flow
Continued strong cash flow $M FY2016 FY2017 1H FY17 2H FY17 Mainly lower impairment charges; net of gain on Reported EBITDA 1,009.8 1,425.0 737.0 688.0 sale of Castrip and Taharoa For personal use only Adjust for other cash profit items (168.7) 69.4 35.6 33.8 Strong working capital performance in 2H
Slide 42: Investing in our businesses – capital and investment expenditure
Investing in our businesses – capital and investment expenditure slightly above D&A charge of $380M For personal use only $116M in 1H, $136M in 1H, Largest growth projects: $251M in 2H $247M in 2H • Painting and coating capacity in Thailand • Painting capacity in India • Investment in next generatio
Slide 43: Net debt reduced to $232M; liquidity of $1.9bn
Net debt reduced to $232M; liquidity of $1.9bn For personal use only Net debt ($M) Liquidity (undrawn facilities and cash, $M) 531 4 1,932.4 1,813.1 1,801.4 2 32 (41) 232 (31) 201 (671) 173 208 Dec-16 Cash inflow Capex & Share buy- Other incl FX Jun-17 Est net Jun-17 Jun-16 Dec-16 Jun-17 from ops in
Slide 44: Track record of prudent leverage and strengthening credit profile
Track record of prudent leverage and a strengthening credit profile For personal use only Leverage – net debt to LTM underlying EBITDA1 Corporate ratings – S&P and Moody’s Step-up and BBB- Investment grade Baa3 rapid pay-down of North Star 50% acquisition BB+ Ba1 S&P BB Ba2 1.6x BB- Ba3 0.7x 0.8x Mo
Slide 45: Outlook & Summary
For personal use only OUTLOOK & SUMMARY
Slide 46: Outlook: immediate and strategic views
Our successful transformation allows us to examine Outlook through both immediate and strategic views For personal use only Immediate view: 1H FY2018 outlook • Expect 1H FY2018 underlying EBIT around 80% of 2H FY2017 underlying EBIT (which was $527.3M) • Based on assumptions of average1: – East Asia
Slide 47: Macro factors impacting 1H FY2018 outlook
Macro factors impacting 1H FY2018 outlook relative to 2H FY2017 For personal use only Composition of difference in 1H FY2018 underlying EBIT outlook and 2H FY2017 US steel market • Spread US$30/t lower uncertainty – North • Higher scrap prices ahead of steel price rises ~45% Star spread • Steel pric
Slide 48: 1H FY2018 outlook – segment comments
1H FY2018 outlook – segment comments1 Australian Steel Products North Star For personal use only • Expect lower result in 1H FY2018 • Expect average spread through 1H FY2018 to be • As trade restrictions take hold in global markets, import US$30/t lower than realised 2H FY2017 spreads product offeri
Slide 49: Strategic view on Outlook – BlueScope transformed
Strategic view on Outlook – BlueScope transformed Improvement in underlying EBIT For personal use only 1,105 20 (23) • Rebased earnings to a 103 Driven by productivity higher level North America and cost improvements, productivity initiatives with similar spreads 299 • Macro volatility having Driven
Slide 50: Q&A
For personal use only Q&A
Slide 51: Additional Information – Group-Level Material
For personal use only ADDITIONAL INFORMATION – GROUP-LEVEL MATERIAL
Slide 52: Financial headlines
Financial headlines YEAR ENDED ENDED For personal use only $M (unless marked) 30 JUNE 2016 30 JUNE 2017 FY17 vs FY16 Total revenue 9,202.7 10,757.7 External despatches of steel products (kt) 6,963.3 7,615.5 EBITDA Underlying 1 966.0 1,485.4 EBIT Reported 621.6 1,044.5 Underlying 1 583.
Slide 53: Reconciliation between reported NPAT and underlying NPAT
Reconciliation between reported NPAT and underlying NPAT1 For personal use only FY2017 NPAT $M Reported net profit after tax 715.9 Underlying adjustments Asset impairments – mainly EBS China and NS BlueScope Indonesia 73.7 Restructuring & redundancy costs 28.8 Asset sales – mainly profit on sale of
Slide 54: Summary of financial items by segment
Summary of financial items by segment For personal use only Sales revenue Total steel despatches $M FY16 1H17 2H17 FY17 '000 tonnes FY16 1H17 2H17 FY17 Australian Steel Products 4,437.4 2,365.0 2,553.7 4,918.7 Australian Steel Products 2,886.7 1,466.4 1,624.3 3,090.7 North Star BlueScope Steel 847.3
Slide 55: Balance sheet
Balance sheet $M 30 Jun 2016 31 Dec 2016 30 Jun 2017 For personal use only Assets Cash 549.8 561.9 753.0 Receivables * 1,194.2 1,059.9 1,363.9 Inventory * 1,462.6 1,814.0 1,733.2 Property, Plant & Equipment 3,834.1 3,798.6 3,721.7 Intangible Assets 1,770.6 1,794.4 1,689.7 Other Assets 337.2 361.1 31
Slide 56: Net working capital
Net working capital 30 June 2016 benefitted by 30 June 2017 benefitted by $100M from timing $100M from timing For personal use only of year-end cash of year-end cash flows (80.8) flows 1,462.0 1,419.6 303.9 1,269.3 (317.0) 1,212.2 1,156.1 1,035.5 37.8 $M Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016
Slide 57: Inventory movement
Inventory movement For personal use only RM $329.7M RM $409.6M WIP 472.5 WIP 590.8 FG 481.5 FG 563.4 Other 178.9 Other 169.4 $270.6M increase comprised of segmental movements: 0.9 1,733.2 103.7 (24.7) ASP – driven by higher 144.1 volumes and higher 190.7 prices 1,462.6 18.1 NZ & Pacific $M Building
Slide 58: Debt facilities maturity profile at June 2017
Debt facilities maturity profile at 30 June 2017 For personal use only Receivables securitisation program: BSL Syndicated Bank Facility US unsecured notes 650 In addition to debt facilities, BSL has NS BlueScope JV facilities (100%) $460M of off-balance sheet Inventory Finance securitisation progr
Slide 59: Committed debt facilities as at June 2017
Committed debt facilities as at 30 June 2017 Committed Drawn For personal use only Maturity Local currency A$M A$M Syndicated Bank Facility - Tranche 1 Nov 2017 A$240M A$240M A$0M - Tranche 2 Nov 2019 A$300M A$300M A$0M - Tranche 3 Dec 2018 A$310M A$310M A$0M US unsecured notes May 2021 US$500M A$65
Slide 60: Indicative EBIT sensitivities for 1H FY2018
Indicative EBIT sensitivities for 1H FY20181 Australian Steel Products segment New Zealand Steel & Pacific Steel segment For personal use only +/- US$10/t move in average benchmark hot rolled coil price +/- US$10/t move in benchmark steel prices (HRC and rebar) - direct sensitivity2 +/- $7M - direct
Slide 61: Additional Information – Segment Material
For personal use only ADDITIONAL INFORMATION – SEGMENT MATERIAL
Slide 62: Australian Steel Products: financial and despatch summaries
Australian Steel Products Financial and despatch summaries For personal use only Key segment financial items Despatches breakdown $M unless marked FY16 1H17 2H17 FY17 '000 tonnes FY16 1H17 2H17 FY17 Revenue 4,437.4 2,365.0 2,553.7 4,918.7 Hot rolled coil 486.3 247.5 258.8 506.4 Underlying EBITDA 548
Slide 63: Australian Steel Products: underlying EBIT variance
Australian Steel Products Underlying EBIT variance Net spread increase $103.3M For personal use only 165.3 (283.0) 459.4 221.0 (9.2) 23.0 361.4 (19.1) Raw material costs: Conversion & other costs: Coal (187) Cost improvement initiatives 132 Export prices: Iron ore (19) Escalation / profit share plan
Slide 64: Australian Steel Products: spot spreads have recovered
Australian Steel Products Spot spreads have recovered on stronger steel prices after a dip driven by coal price spike East Asia HRC price (US$/t) and indicative steelmaker HRC spread (A$/t) For personal use only Spread: SBB East Asia HRC price less cost of 1.5t iron ore fines and 0.71t hard coking c
Slide 65: Australian Steel Products: despatch mix
Australian Steel Products Despatch mix (Mt) For personal use only 1.62 1.50 1.47 2H FY2017 Product Mix 0.48 Export 0.41 0.36 Export 0.07 Domestic - 0.07 externally sourced 0.09 HRC Metal Coated Plate Painted CRC Other inc ext sourced 1.08 Domestic - BSL 1.00 1.03 manufactured Domestic 2H FY2016 1H F
Slide 66: Australian Steel Products: revenue and underlying costs FY2017
Australian Steel Products Revenue and underlying costs FY2017 For personal use only Revenue Underlying costs (to EBIT line) A$4,919m A$4,459m Non-steel business costs Non-steel business relate to: Conversion & overhead • Export coke Non-steel business • Export coke sales components (in order • Cold
Slide 67: Residential markets remain resilient; non-residential showing strength
Australian Steel Products Residential markets remain resilient; non-residential showing strength For personal use only Commencements lagging approvals Alteration and additions activity firm Non-residential construction which remain at robust levels – tracking house prices approvals showing a rebound
Slide 68: Current Australian detached dwelling approvals within long term range
Current Australian detached dwelling approvals are well within long term range Australian new dwelling approvals, FY1965-FY2017 (Rolling 12 Months to June Quarter 2017) For personal use only 240,000 Total approvals 220,000 200,000 180,000 160,000 140,000 120,000 Detached houses 100,000 80,000 60,000
Slide 69: Continued focus on customer engagement underpinning Australian demand
Continued focus on customer engagement is underpinning Australian demand For personal use only Total Australian external domestic despatch volumes (Kt) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 2,800 Total construction % shown in red 63% 2,600 2,400 67% 65% 63% 24% 69% 2,200 (63
Slide 70: North Star: financial & despatches summary
North Star Financial & despatches summary Key segment financial items – A$M For personal use only $M unless marked FY16 1H17 2H17 FY17 Note that these measures reflect Revenue 847.3 793.9 906.9 1,700.9 equity accounted contribution from Underlying EBITDA 184.1 238.6 223.1 461.7 North Star up until a
Slide 71: North Star: underlying EBITDA variance
North Star Underlying EBITDA US$M variance on 100% basis For personal use only Spread increase $159.5M (129.4) 348.3 18.9 6.5 - 0 288.9 163.4 FY2016 Prices Raw material costs Conversion & Volume & mix FX translation FY2017 other costs & other Spread decrease $27.7M 49.8 180.2 (77.5) 168.2 11.5 - 0 4
Slide 72: Higher U.S. prices; U.S.-China price differential returned to average
Higher U.S. prices. Differential between U.S. and China prices returned to ‘average’ levels Hot rolled coil prices and U.S. anti-dumping / countervailing actions For personal use only 1,000 March 2013: following review, U.S. DOC maintains March 2016: U.S. DOC announces preliminary US Midwest HRC HRC
Slide 73: Building Products ASEAN, North America & India: financial summary
Building Products ASEAN, North America & India Financial summary For personal use only Key segment financial items Despatches by business $M unless marked FY16 1H17 2H17 FY17 '000 tonnes FY16 1H17 2H17 FY17 Revenue 1,766.8 951.0 1,019.5 1,970.5 Thailand 367.4 188.8 196.1 384.9 Underlying EBITDA 210.
Slide 74: Building Products: underlying EBIT variance
Building Products ASEAN, North America & India Underlying EBIT variance For personal use only Net spread increase $34.7M 197.0 (167.6) 201.7 13.7 8.8 (12.9) 149.3 8.1 5.3 FY2016 Export prices Domestic Raw material Conversion Volume & mix TBSL India FX translation 1 FY2017 prices costs & other costs
Slide 75: BlueScope Buildings: financial and despatches summary
BlueScope Buildings Financial and despatches summary For personal use only Key segment financial items Despatches by business $M unless marked FY16 1H17 2H17 FY17 '000 tonnes FY16 1H17 2H17 FY17 Revenue 1,705.9 896.1 860.7 1,756.8 Engineered Buildings North America 238.9 129.2 117.8 246.9 Underlying
Slide 76: BlueScope Buildings: underlying EBIT variance
BlueScope Buildings Underlying EBIT variance For personal use only (6.4) 64.0 Net margin increase $2.4M 18.8 49.2 (14.1) 33.8 (17.3) FY2016 Prices Raw material costs Conversion & Volume & mix FX translation FY2017 other costs & other Net margin decrease $15.8M 79.8 (90.5) 49.4 (5.1) (18.7) 14.5 (0.4
Slide 77: BlueScope Buildings: solid progress in North America earnings growth
BlueScope Buildings Solid progress in North America earnings growth driven by productivity and cost saving measures. Volumes improved in FY2017 For personal use only Underlying EBIT of Buildings North America ($M) Buildings North America – volumes 500 450 62.8 400 19.6 350 Kt (metric) Includes initi
Slide 78: New Zealand & Pacific Steel: financial summary
New Zealand & Pacific Steel Financial summary For personal use only Key segment financial items Steel despatches $M FY16 1H17 2H17 FY17 '000 tonnes FY16 1H17 2H17 FY17 Revenue 772.4 344.8 402.7 747.5 Domestic despatches Underlying EBITDA 10.6 33.5 69.8 103.2 - NZ Steel flat products 258.0 135.3 135.
Slide 79: New Zealand & Pacific Steel: underlying EBIT variance
New Zealand & Pacific Steel Underlying EBIT variance 61.1 4.3 For personal use only 13.6 53.4 Net spread increase $30.1M (5.4) 27.5 8.0 (40.3) FY2016 Export prices Domestic prices Raw material Conversion Volume & mix FX translation FY2017 costs & other costs & other 1 Net spread increase $33.8M 47.5
Slide 80: New Zealand & Pacific Steel: despatch mix
New Zealand & Pacific Steel Despatch mix For personal use only 331.3 328.5 Export long 22.3 15.9 276.4 6.2 80.9 Export flat 93.4 2H FY2017 Domestic Product Mix 48.1 86.8 96.3 Domestic long 90.2 HRC Painted Plate Other flat products 135.3 135.4 CRC Pacific Steel long products Domestic flat 125.4 Meta
Slide 81: East Asian rebar price influences domestic and export long product pricing
New Zealand & Pacific Steel The East Asian rebar price influences domestic and export long product pricing For personal use only SBB East Asian rebar price (US$/t) $800 $700 $600 $500 $400 $300 $200 $100 $0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Source: Steel Business Briefin
Slide 82: Robust NZ construction and manufacturing activity
New Zealand & Pacific Steel Robust NZ construction and manufacturing activity reflects a strong economy For personal use only Residential building consents – momentum holding Non-residential construction consents – robust levels ‘000 units, Cal Yrs 3,500 7.0 Moving annual total of value of consents
Slide 83: FY2017 Financial Results Presentation
For personal use only FY2017 Financial Results Presentation Paul O’Malley, Managing Director and Chief Executive Officer Charlie Elias, Chief Financial Officer 21 August 2017 BlueScope Steel Limited. ASX Code: BSL