Bluescope Steel Limited · ASX:BSL
Bluescope Steel — H1 FY2023 Earnings Presentation
92 slides from Bluescope Steel's earnings presentation, Feb 20, 2023
Slide 1: 1H FY2023 Financial Results Presentation
1H FY2023 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Mark Scicluna Acting Chief Financial Officer 20 February 2023 BlueScope Steel Limited. ASX Code: BSL Pictured: ABN: 16 000 011 058 Residence in Geelong, VIC Level 11, 120 Collins St, Melbourne, VIC,
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 BlueScope Steel Limited securities or other products should be made only after seeking appropriate financial advice. Reliance should not b
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY BlueScope acknowledges the Traditional Custodians of the land on which we work, live and operate. We recognise our First Nations Peoples who have inhabited Australia for millennia, their enduring connection to Country, sky, and waterways and their rich and vital cultures.
Slide 4: 1H FY2023 Highlights
1H FY2023 HIGHLIGHTS Positioning for long term sustainable growth and returns • Delivered robust financial performance with ROIC of 23.4% • Return to franking with fully franked interim dividend • Delivering our US growth strategy: – Ramp up of the North Star expansion progressing well – Progressing
Slide 5: Health, Safety & Environment Starts With All of Us
HEALTH, SAFETY & ENVIRONMENT STARTS WITH ALL OF US • Our integrated HSE strategy has embraced a people-centred approach and embedded a culture of learning from our people to develop smart solutions in managing risk • Team-based HSE risk control and improvement projects continue to build capacity in
Slide 6: 1H FY2023 Financial Highlights
1H FY2023 FINANCIAL HIGHLIGHTS Robust result in a softer macro environment, demonstrating the strength of BlueScope’s diversified business model Underlying EBIT1 Underlying EBIT Return Reported NPAT On Invested Capital2 $851M 23.4% $599M Down $1,353M on 1H FY2022 Down from 43.7% in 1H FY2022 Down $1
Slide 7: 1H FY2023 Underlying EBIT by Segment
1H FY2023 UNDERLYING EBIT BY SEGMENT Segmental earnings robust despite softening from cyclically strong conditions in 1H FY2022 Australian Steel North Star Buildings and Coated Products Products North America $274M $202M $173M Down 60% on 1H FY2022 Down 84% on 1H FY2022 Up 860% on 1H FY2022 Building
Slide 8: 1H FY2023 Sustainability Update
1H FY2023 SUSTAINABILITY UPDATE Embedding sustainability in all that we do Climate Action • Continuing to progress a range of initiatives, projects and collaborations • Initiatives are being progressed at ASP, including the pilot hydrogen DRI melter plant concept study in partnership with Rio Tinto
Slide 9: 1H FY2023 Sustainability Update
1H FY2023 SUSTAINABILITY UPDATE Embedding sustainability in all that we do Inclusion & Diversity Sustainable Supply Chain Regulatory Proceedings • Continuing our efforts to reflect • Increase in suppliers being • On 9 December 2022, in a the communities in which we assessed through EcoVadis or proce
Slide 10: Our Purpose and Strategy
OUR PURPOSE AND STRATEGY OUR PURPOSE We create and inspire smart solutions in steel, to strengthen our communities for the future OUR STRATEGY TRANSFORM GROW DELIVER DELIVER A STEP CHANGE IN GROW OUR PORTFOLIO OF DELIVER A SAFE WORKPLACE, CUSTOMER EXPERIENCE AND SUSTAINABLE STEELMAKING AND AN ADAPTA
Slide 11: Well Positioned for the Favourable Long Term Outlook for Steel
WELL POSITIONED FOR THE FAVOURABLE LONG TERM OUTLOOK FOR STEEL The global green revolution driving demand for steel as a critical input for a clean energy future (incl. wind, solar and transmission infrastructure) Steel intensive building and construction supported by a robust pipeline of public inf
Slide 12: Delivering Our US Growth Strategy
DELIVERING OUR US GROWTH STRATEGY Expanding our footprint and growing our brand presence across the US flat steel value chain, with total US investment around $5 billion Progress in 1H FY2023 BlueScope’s US footprint • 18-month ramp up from August 2022 North Star progressing well Expansion • Debottl
Slide 13: Segment review
Segment review 13
Slide 14: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Softer performance driven by weaker spreads and volumes Underlying EBIT ($M) • Solid domestic end-use demand, 688 however despatches softened on 2H 610 FY2022 as distribution customers lowered inventories in a falling price environment and following the arrival of 274 delay
Slide 15: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS 1H FY2023 domestic despatches impacted by distribution channel buying behaviour and weather related disruptions in building and construction activity; underlying demand remains solid Total Australian domestic despatch volumes (kt) Dwelling • Approximately half of product go
Slide 16: Australian Steel Products
AUSTRALIAN STEEL PRODUCTS Detached building approvals have eased back to pre-pandemic levels. Renovation and non-residential approvals remained elevated in the half Monthly dwelling approvals1 (‘000 units, annualised) Alterations and additions approvals2 ($Bn) Detached at the mid-point of historic r
Slide 17: North Star
NORTH STAR Prices softened from record highs; operated at full capacity US steel mill capacity utilisation3 (%) Underlying EBIT ($M) • Steel spreads softer in 1H FY2023 100% North Star 1,229 on lower steel prices, noting specific 80% sales mix relative to benchmark2 672 60% Total US • Demand for Nor
Slide 18: North Star
NORTH STAR Consumer auto demand remained stable, but output impacted by supply chain constraints; non- residential construction robust; manufacturing softened with lower new orders on recession concerns Automotive1 Non-residential construction2 Manufacturing3 (Light vehicle sales, annualised million
Slide 19: Buildings and Coated Products North America
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Strong margins at the EBS business; integrating Coated Products Underlying EBIT ($M) 173 • EBS business achieved strong margins on stronger selling prices and lower steel feed costs 79 • Demand conditions remained strong 18 for EBS in 1H FY2023, though sof
Slide 20: Building Products Asia and North America
BUILDING PRODUCTS ASIA AND NORTH AMERICA Strong performance in North America and China offsetting weaker performance in ASEAN Underlying EBIT ($M) North America – EBIT $103M in 1H FY2023, up from $90M in 2H FY2022 266 • Benefitted from stronger margins in the downstream businesses 153 165 South East
Slide 21: New Zealand and Pacific Islands
NEW ZEALAND AND PACIFIC ISLANDS Robust result but lower than 2H FY2022, due to softer domestic despatches Underlying EBIT ($M) 142 • Robust domestic end-use demand, 86 86 though despatches softened on 2H FY2022 following the arrival of delayed imports at the end of 2H FY2022 1H FY2022 2H FY2022 1H F
Slide 22: Underlying Group EBIT Variance
UNDERLYING GROUP EBIT VARIANCE Lower underlying EBIT in 1H FY2023 largely driven by significant spread declines, combined with pressure from increased conversion costs 1H FY2023 vs 1H FY2022 ($M) 1H FY2023 vs 2H FY2022 ($M) 2,204 Net spread decrease $1,101M Raw material costs ($M) (144) Coal (incl.
Slide 23: Financial framework
Financial framework 23
Slide 24: Financial Framework Underpinning Resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE Strong focus on driving financial performance and disciplined allocation of capital Disciplined Returns Focus Robust Capital Structure Capital Allocation • ROIC > WACC on average through • Strong balance sheet, with a target • Invest to maintain safe and r
Slide 25: Returns Focus Delivering ROIC
RETURNS FOCUS DELIVERING ROIC Targeting returns above cost of capital through the cycle • ROIC1 is the primary Group ROIC Performance (%) measure of performance across all business units and is a key focus for the Group. ROIC is a key 41.6% discipline for: 24.8% 23.4% 19.5% – performance 7.6% manage
Slide 26: Returns Focus Maximising Cash Generation
RETURNS FOCUS MAXIMISING CASH GENERATION Strong operating cash flow funding investment in the portfolio and returns to shareholders Net cash flow ($M) Net cash / (debt)1 ($M) (before investment exp and financing) $M FY2021 FY2022 2H22 1H23 (237) Reported EBITDA1 2,246 4,398 1,884 1,156 (59) North St
Slide 27: Returns Focus Working Capital
RETURNS FOCUS WORKING CAPITAL Lower steel prices resulted in lower payables and inventory, part offset by higher payables on unfavourable exchange rate movements and timing of payments 3,053 2,795 2,713 (614) 89 662 (478) 1,687 1,332 Driven by moderating Driven by FX and $M steel prices timing of pa
Slide 28: Robust Capital Structure Net Cash Position; Ample Liquidity
ROBUST CAPITAL STRUCTURE NET CASH POSITION; AMPLE LIQUIDITY Strong balance sheet providing the foundation to deliver long term sustainable earnings and growth • Maintained investment grade credit Net cash / (debt)1 ($M) Liquidity ($M) ratings (undrawn facilities and cash) 798 3,694 3,655 2 • Strong
Slide 29: Disciplined Capital Allocation Capital Expenditure
DISCIPLINED CAPITAL ALLOCATION CAPITAL EXPENDITURE Investing for sustainable earnings growth Capital allocation framework Capital and acquisition expenditure1 ($M) Operating 1,121 Asset Sales Divestments North Star expansion Growth Cash Flow 96 11 BF6 reline feasibility2 Foundation Acquisitions Sust
Slide 30: Disciplined Capital Allocation Future Investment Priorities
DISCIPLINED CAPITAL ALLOCATION FUTURE INVESTMENT PRIORITIES Indicative ~A$1.9Bn of projects identified for growth, foundational investment and to position the business for a low carbon future Recent US investments ($M) Future investment priorities1 ($M) Project FY23 FY27 ~$2.2Bn New mill to support
Slide 31: Disciplined Capital Allocation Shareholder Returns
DISCIPLINED CAPITAL ALLOCATION SHAREHOLDER RETURNS $2.5Bn returned since FY2017; announced fully franked interim dividend of 25 cps and extension of existing on-market buy-back program • BlueScope’s capital management policy is to distribute at least 50% of free Dividends paid and buy-backs2 ($M) ca
Slide 32: Segment guidance for 2H FY2023
Segment guidance for 2H FY2023 32
Slide 33: Segment Guidance for 2H FY2023
SEGMENT GUIDANCE FOR 2H FY2023 Outlook subject to assumptions and qualifiers referenced on page 35 Australian Steel Products North Star Buildings & Coated Products US • Expect a result around a third lower than 1H • Expect a result of around a half of 1H FY2023 • Expect a result similar to 1H FY2023
Slide 34: Group outlook and summary
Group outlook and summary 34
Slide 35: 2H FY2023 Group Outlook
2H FY2023 GROUP OUTLOOK1 • Underlying EBIT in 2H FY2023 is expected to be in the range of $480M to $550M. Lower than 1H FY2023 mainly due to softer Asian and Midwest steel spreads • For the purposes of the outlook, the Company has made the following 2H FY2023 average assumptions: – US mini-mill benc
Slide 36: A Resilient Business Delivering Returns Through the Cycle
A RESILIENT BUSINESS DELIVERING RETURNS THROUGH THE CYCLE A different kind of steel company being purpose-led, sustainability focussed and differentiated by strong brands Well positioned with a high-quality asset portfolio to take advantage of favourable industry and end use trends Disciplined appro
Slide 37: Questions
Questions 37
Slide 38: A Different Kind of Steel Company
A Different Kind of Steel Company What makes us different? Purpose-led and sustainability focussed High-quality asset portfolio Leading product technologies, branding & channels Financial strength & cost competitiveness Deploying financial strength for long term sustainable growth and returns 38
Slide 39: Our Bond
Our Bond Our Customers are our partners Our People are our strength Our Our Shareholders are our foundations Purpose Our Local Communities are our homes We create and inspire smart solutions in steel, to strengthen our communities for the future. 39
Slide 40: Five Key Sustainability Outcomes
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED FIVE KEY SUSTAINABILITY OUTCOMES Sustainable growth and transformation Operate and transform our business for enduring success with good governance, capital discipline, customer focus and strengthened people, process and technology capabilities Safe, healthy
Slide 41: Health, Safety and Environment
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED HEALTH, SAFETY AND ENVIRONMENT Balanced indicators to drive our people-centred strategy and commitment to protecting the environment Leading Health and Safety Metrics Lagging Health & Safety Metrics • Focus on leading indicators for risk management, includin
Slide 42: Health, Safety and Environment
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED HEALTH, SAFETY AND ENVIRONMENT Balanced indicators to drive our people-centred strategy and commitment to protecting the environment Leading Environment Metrics • Our environmental aspirations framework has been in place for over a decade, with our results d
Slide 43: Climate Action
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED CLIMATE ACTION A range of opportunities in progress, supported by the 5-year climate investment program, of up to $150M Optimising current operating assets Emerging and breakthrough technologies Steelmaking Port Kembla, Aus Port Kembla, Aus • Concept study f
Slide 44: Inclusion, Diversity and Social Impact
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED INCLUSION, DIVERSITY AND SOCIAL IMPACT We continue to build an inclusive workforce, which reflects the diversity of the communities in which we operate, and are working to drive positive social impact and mitigate adverse impacts Inclusion & Diversity Women
Slide 45: Supply Chain Sustainability
1 PURPOSE-LED AND SUSTAINABILITY FOCUSSED SUPPLY CHAIN SUSTAINABILITY We foster responsible business practices and uphold human rights through engagement, risk assessment and improvement activities Our Approach 1H FY2023 Progress • Completed the Engage and Assess process with 342 suppliers We priori
Slide 46: High Quality Asset Portfolio
2 HIGH QUALITY ASSET PORTFOLIO QUALITY ASSETS ACROSS LARGE AND GROWING MARKETS • Strong operating leverage from diverse business India China ASEAN portfolio • A leader in metal coating and painting for building and construction • Iconic industrial brand position of COLORBOND® steel • Integrated and
Slide 47: High Quality Asset Portfolio: Diversified Business
2 HIGH QUALITY ASSET PORTFOLIO DIVERSIFIED BUSINESS Geographic diversity and increasing contribution from value-added products Underlying EBITDA by region BlueScope despatch volume mix 100% Buildings and Coated NZ & Pacific Products North America $101M North America 90% $589M Building products Asia
Slide 48: High Quality Asset Portfolio: Broad Exposure to End-Use Segments
2 HIGH QUALITY ASSET PORTFOLIO BROAD EXPOSURE TO END-USE SEGMENTS Broad exposure across geographies, largely focussed on the building and construction industry BlueScope indicative despatch volume split by region and end-use segment1 Other (Exports) Manufacturing, Automotive North Star: exposed main
Slide 49: Leading Product Technologies
3 LEADING PRODUCT TECHNOLOGIES Continued investment in research & development to maintain leadership in steel coating and painting technologies Product Technology and Development Leadership • Advanced pre-painted and metallic coating development for building, construction and home appliance segments
Slide 50: Leading Brands and Channels
3 LEADING BRANDS AND CHANNELS A portfolio of many well-known and respected names to support our premium branded positions; clear focus on knowing our end customers and maintaining strong channels to market Brands Channels Australia ® ® Zealand New ® ® Asia ® ® ® ® America North ® ® ® 50
Slide 51: Financial Strength & Cost Competitiveness
4 FINANCIAL STRENGTH & COST COMPETITIVENESS GUIDED BY OUR FINANCIAL FRAMEWORK Strong returns, a robust balance sheet and a disciplined approach to capital allocation Returns Robust Disciplined Focus Capital Structure Capital Allocation Targeting shareholder returns Focus on ROIC and free cash genera
Slide 52: Financial Strength & Cost Competitiveness: Australian Steel Products
4 FINANCIAL STRENGTH & COST COMPETITIVENESS AUSTRALIAN STEEL PRODUCTS Australian steelmaking breakeven at minimum recent spreads; benefits from vertical integration Asian steel spread1 & estimated steelmaking The value of vertical integration cash breakeven2 (US$/t) • Clear objective of optimising p
Slide 53: Financial Strength & Cost Competitiveness: North Star
4 FINANCIAL STRENGTH & COST COMPETITIVENESS NORTH STAR Strong EBITDA and cash generation through the cycle; industry leading margins; consistently full utilisation US$M EBITDA and spread (100% basis) EBIT margins3 (%) 1,400 U.S. mini-mill spread1 1,352 24% 1,300 EBITDA (100% basis) 17% Cash flow (EB
Slide 54: Deploying Financial Strength: Future Investment Priorities
5 DEPLOYING FINANCIAL STRENGTH FUTURE INVESTMENT PRIORITIES Indicative ~A$1.9Bn of projects identified for growth, foundational investment and to position the business for a low carbon future Recent investments ($M) Future investment priorities1 ($M) Project FY23 FY27 ~$2.2Bn New mill to support ent
Slide 55: Deploying Financial Strength: Digitally Transforming Our Business
5 DEPLOYING FINANCIAL STRENGTH DIGITALLY TRANSFORMING OUR BUSINESS Delivering the next wave of customer, growth and productivity improvements through technology Strengthen Capabilities Right skills and behaviours foundations to Data and platforms Investing in enabling platforms Transfer learnings ac
Slide 56: Deploying Financial Strength: Investing in Growth at ASP
5 DEPLOYING FINANCIAL STRENGTH INVESTING IN GROWTH AT ASP A wide range of low capital growth opportunities in intermaterial applications Premium coated and painted products Value-added commodity products Residential steel framing Cladding & facade applications TRU-SPEC® coil plate • Solid growth in
Slide 57: Additional Information: Group-level Material
Additional Information: Group-level Material 57
Slide 58: Financial Headlines
FINANCIAL HEADLINES SIX MONTHS ENDED FY2023 vs $M (unless marked) 31 DEC 2021 31 DEC 2022 FY2022 Total revenue 9,436.2 9,357.6 External despatches of steel products (kt) 3,844.4 4,169.0 EBITDA − Underlying 1 2,461.0 1,172.2 EBIT − Reported 2,257.4 834.4 − Underlying 1 2,204.1 851.1 NPAT −
Slide 59: Reconciliation Between Reported and Underlying EBIT and NPAT
RECONCILIATION BETWEEN REPORTED AND UNDERLYING EBIT AND NPAT1 1H FY2022 1H FY2023 $M EBIT $M NPAT $M EBIT $M NPAT $M Reported results 2,257.4 1,643.5 834.4 598.9 Underlying adjustments Discontinued business (gains) / losses (1.6) (1.1) (2.3) (1.1) Business development and acquisition costs 8.2 6.4 1
Slide 60: Underlying Earnings, Net Finance and Tax Cost
UNDERLYING EARNINGS, NET FINANCE AND TAX COST 1H 2H 1H $M Breakdown of net finance costs FY2022 FY2022 FY2023 Reg-S Bonds 10.4 Underlying EBIT 2,204.1 1,583.1 851.1 Core bilateral loan facility charges 4.0 Underlying finance costs (37.1) (34.2) (37.9) Leases 14.2 Interest revenue 6.5 6.8 18.4 Amorti
Slide 61: Summary of Financial Items by Segment
SUMMARY OF FINANCIAL ITEMS BY SEGMENT Sales revenue Total steel despatches $M 1H FY2022 2H FY2022 FY2022 1H FY2023 '000 tonnes 1H FY2022 2H FY2022 FY2022 1H FY2023 Australian Steel Products 3,963.0 4,265.7 8,228.7 4,089.7 Australian Steel Products 1,582.6 1,573.7 3,156.3 1,678.5 North Star BlueScope
Slide 62: Cash Flow Statement
CASH FLOW STATEMENT $M 1H FY2022 2H FY2022 1H FY2023 Reported EBITDA 2,514.3 1,884.0 1,155.5 Adjust for other cash profit items (9.2) (42.5) 17.8 Cash from operations 2,505.1 1,841.5 1,173.3 Working capital movement (inc provisions) (1,141.0) (258.2) 210.0 Driven by softer pricing and Gross operatin
Slide 63: Inventory Movement
INVENTORY MOVEMENT Reduction in inventory largely driven by lower rate in a falling steel price environment RM $1,300M WIP $950M $478M decrease comprised of segment movements: FG $1,232M (including eliminations and other of $35M) RM1 $1,202M Other $266M WIP2 $897M RM $1,046M 91 NZPI – predominantly
Slide 64: Balance Sheet
BALANCE SHEET $M 31 Dec 2021 30 Jun 2022 31 Dec 2022 Assets Cash 1,903.6 1,682.7 1,919.6 Receivables and Contract Assets * 1,877.7 2,215.3 1,601.1 Inventory * 3,358.5 3,748.1 3,270.5 Property, Plant & Equipment 4,880.6 5,310.3 5,470.5 Right Of Use Assets 328.8 374.4 387.6 Intangible Assets 1,934.5 2
Slide 65: Prudent Maturity Profile
PRUDENT MATURITY PROFILE Bilateral facilities increased and extended in November 2022 Maturity profile1 ($M) Bilateral Loan Agreements Reg-S Bonds NS BlueScope JV facilities (100%) Inventory Finance 527 501 84 457 74 Reg-S Bonds repaid from 427 Sale of receivables program: cash in January 2023, ahea
Slide 66: Committed Debt Facilities as at 31 December 2022
COMMITTED DEBT FACILITIES AS AT 31 DECEMBER 20221 Committed Drawn Maturity Local currency A$M A$M Bilateral Loan Agreements - Tranche A Jul 2025 A$427M A$427M - - Tranche B Jul 2026 A$427M A$427M - Reg-S Bonds repaid - Tranche C from cash in January Jul 2027 A$457M A$457M - 2023, ahead of their Reg-
Slide 67: Buy Back History
BUY BACK HISTORY 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 2H FY22 1H FY23 Total Shares bought 12.8 12.0 9.2 18.9 17.0 14.6 2.9 - - 13.6 18.8 7.4 127.2 (M) Consideration 150 148 152 293 217 186 34 - - 285 353 120 1,937 ($M) Average price $11.74 $12.37 $16.50 $15
Slide 68: Indicative Half Year EBIT Sensitivities
INDICATIVE HALF YEAR EBIT SENSITIVITIES1 Sensitivities may vary subject to volatility in prices, currencies and market dynamics – refer to page 73 Australian Steel Products segment New Zealand Steel & Pacific Steel segment North Star segment +/- US$10/t move in average benchmark hot rolled +/- US$10
Slide 69: Additional Information: Segment Material
Additional Information: Segment Material 69
Slide 70: Australian Steel Products: Financial and Despatch Summaries
AUSTRALIAN STEEL PRODUCTS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 '000 Tonnes 1H FY2022 2H FY2022 FY2022 1H FY2023 Revenue 3,963.0 4,265.7 8,228.7 4,089.7 Hot rolled coil 373.4 319.0 692.4 249.8 Underlyin
Slide 71: Australian Steel Products: Underlying EBIT Variance
AUSTRALIAN STEEL PRODUCTS Underlying EBIT variance 1H FY2023 vs 1H FY2022 ($M) 1H FY2023 vs 2H FY2022 ($M) Net spread decrease $156M Conversion & other costs ($M) Cost improvement initiatives 23 Escalation (56) 688 349 (365) Volume impact on costs (52) Raw material costs ($M) Timing, one-off & other
Slide 72: Australian Steel Products: Spreads
AUSTRALIAN STEEL PRODUCTS Spreads contracted during 1H FY2023 on lower HRC prices, partly offset by lower raw materials Indicative steelmaker HRC lagged spread Notes on calculation: • ‘Indicative steelmaker HRC spread’ $800 representation based on simple input blend of 1.5t iron ore fines and 0.71t
Slide 73: Australian Steel Products: Relationships with Benchmark Pricing
AUSTRALIAN STEEL PRODUCTS Relationships with benchmark pricing • Selling prices across majority of domestic product correlated with SBB East Asia HRC price; lagged generally three to five months; degree of Steel prices correlation between realised and benchmark prices can vary within a given half ye
Slide 74: Australian Steel Products: Despatch and Product Mix
AUSTRALIAN STEEL PRODUCTS Despatch mix (Mt) 1H FY2023 Product Mix 1.68 1.58 1.57 0.16 Export 0.30 0.52 Export 0.09 0.09 Domestic - 0.07 ext. sourced Slab CRC Other HRC Metal Coated (inc ext Plate Painted sourced) 1.33 1.18 Domestic - 1.09 BSL manufactured Domestic 1H FY2022 2H FY2022 1H FY2023 74
Slide 75: Australian Steel Products: Revenue and Underlying Costs
AUSTRALIAN STEEL PRODUCTS 1H FY2023 Revenue 1H FY2023 Underlying costs (to EBIT line) A$4,090M A$3,816M Non-steel business costs relate to: Non-steel business Non-steel business • Export coke sales Conversion & overhead • Cold ferrous feed to Infrabuild components (in order of value): • Export coke
Slide 76: Finley Solar Farm PPA Derivative Revaluation History
AUSTRALIAN STEEL PRODUCTS Finley Solar Farm Power Purchase Agreement (PPA) derivative revaluation history P&L Benefit / (Charge) from Finlay PPA Derivative Revaluation ($M) • In July 2018, ASP entered into a 7- 60 year Power Purchase Agreement 53 (PPA), where BlueScope will offtake 66% of the 133MW
Slide 77: Australian Steel Products: Dwelling Approvals and Commencements
AUSTRALIAN STEEL PRODUCTS Detached approvals have pulled back from record high levels with commencements impacted by a range of supply chain disruptions, such as floods and transport outages Long-Term Dwelling Approvals: rolling 12 months1 (‘000) Dwelling Commencements: by halves2 (‘000) Detached ap
Slide 78: Australian Steel Products: Non-Residential Approvals
AUSTRALIAN STEEL PRODUCTS Non-residential approvals have remained resilient across all sub-sectors, particularly public investment in health & education and private investment in warehousing Non-Residential Building Approvals: rolling 12 months1 (A$Bn) Non-Residential Work Done: by halves2 (A$Bn) Bo
Slide 79: North Star: Financial and Despatch Summaries
NORTH STAR Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 Revenue 2,436.5 2,058.0 4,494.5 1,633.6 Revenue 1,782.4 1,477.2 3,259.6 1,096.0
Slide 80: North Star: Underlying EBIT Variance
NORTH STAR Underlying EBIT variance 1H FY2023 vs 1H FY2022 ($M) 1H FY2023 vs 2H FY2022 ($M) Net spread decrease 1,229 $1,149M Net spread decrease 672 $529M (1,211) (671) 202 202 11 19 99 (10) 50 12 142 63 1H Prices Raw Conversion Volume FX 1H 2H Prices Raw Conversion Volume FX 1H FY2022 material & o
Slide 81: North Star Expansion Capital Spend Profile
NORTH STAR North Star expansion capital spend profile Accounting capital spend (incl. capital accruals) Total to 2H FY2023 1H FY2021 2H FY2021 1H FY2022 2H FY2022 1H FY2023 30-Jun-20 (expected) US$M 140.7 212.7 164.0 129.4 69.5 7.4 ~10 A$M 210.0 294.0 212.5 176.4 96.2 10.8 ~15 Cash capital spend Tot
Slide 82: Buildings and Coated Products North America: Summaries
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Financial and despatch summaries Key segment financial items (A$M) Key segment financial items (US$M) $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 Revenue 744.5 841.8 1,586.3 1,269.3 Revenue 54
Slide 83: Buildings and Coated Products North America: EBIT Variance
BUILDINGS AND COATED PRODUCTS NORTH AMERICA Underlying EBIT variance 1H FY2023 vs 1H FY2022 ($M) 1H FY2023 vs 2H FY2022 ($M) Net margin increase $145M Net margin increase $99M (39) (11) (62) (59) 173 173 14 172 (17) 11 (3) 243 79 18 1H Prices Raw Conversion Volume FX 1H 2H Prices Raw Conversion Volu
Slide 84: Building Products Asia & North America: Summaries
BUILDING PRODUCTS ASIA & NORTH AMERICA Financial and despatch summaries Key segment financial items Despatches by business $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 ‘000 metric tonnes 1H FY2022 2H FY2022 FY2022 1H FY2023 Revenue 2,158.4 2,132.5 4,290.9 2,117.7 Thailand 172.1 160.9 333.0
Slide 85: Building Products Asia & North America: EBIT Variance
BUILDING PRODUCTS ASIA & NORTH AMERICA Underlying EBIT variance 1H FY2023 vs 1H FY2022 ($M) 1H FY2023 vs 2H FY2022 ($M) Net spread decrease $57M 266 3 (65) 5 (13) (35) 165 Net spread decrease $19M 165 5 153 2 0 12 16 (102) 83 1H Export Domestic Raw Conversion Volume FX 1H 2H Export Domestic Raw Conv
Slide 86: New Zealand & Pacific Islands: Summaries
NEW ZEALAND & PACIFIC ISLANDS Financial and despatch summaries Key segment financial items Despatches breakdown $M unless marked 1H FY2022 2H FY2022 FY2022 1H FY2023 '000 Tonnes 1H FY2022 2H FY2022 FY2022 1H FY2023 Revenue 518.0 607.2 1,125.2 461.7 Domestic despatches Underlying EBITDA 99.7 156.9 25
Slide 87: New Zealand & Pacific Islands: EBIT Variance
NEW ZEALAND & PACIFIC ISLANDS Underlying EBIT variance 1H FY2023 vs 1H FY2022 ($M) 1H FY2023 vs 2H FY2022 ($M) Net spread increase $5M Includes $5.2M reduction in Net spread increase $21M vanadium by-product sales (25) 39 Includes $2.2M reduction in 142 (5) (57) vanadium by-product sales (9) 84 (57)
Slide 88: New Zealand & Pacific Islands: Despatch and Product Mix
NEW ZEALAND & PACIFIC ISLANDS Despatch mix (Mt) 1H FY2023 Product Mix 302.9 283.8 0.1 1.2 Domestic 49.4 40.3 216.6 5.2 Export long 111.6 26.1 Export flat 109.1 HRC 77.3 Domestic long Plate CRC Metal Coated Painted 133.2 141.8 Other flat products 108.0 Domestic flat Pacific Steel long products 1H FY2
Slide 89: New Zealand & Pacific Islands: Building Consents and Manufacturing
NEW ZEALAND & PACIFIC ISLANDS An extended period of record high approvals in housing now normalising as central bank focuses on addressing high inflation and taking heat out of the economy Residential Building Consents: rolling 12 months1 (‘000) Residential Work Put in Place: by quarters2 (NZ$Bn) Co
Slide 90: New Zealand & Pacific Islands: East Asian Rebar Price
NEW ZEALAND & PACIFIC ISLANDS The East Asian rebar price influences domestic and export long product pricing SBB East Asian rebar price, unlagged (US$/t) $900 $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 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
Slide 91: Glossary
GLOSSARY 1H Six months ended 31 December in the relevant financial year FY2022 12 months ending 30 June 2022 1H FY2022 Six months ended 31 December 2021 FY2023 12 months ending 30 June 2023 1H FY2023 Six months ended 31 December 2022 HRC Hot rolled coil steel 2H Six months ended 30 June in the relev
Slide 92: 1H FY2023 Financial Results Presentation
1H FY2023 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer Mark Scicluna Acting Chief Financial Officer 20 February 2023 BlueScope Steel Limited. ASX Code: BSL Pictured: ABN: 16 000 011 058 Residence in Geelong, VIC Level 11, 120 Collins St, Melbourne, VIC,