Bluescope Steel Limited · ASX:BSL
Bluescope Steel — FY2025 Earnings Presentation
38 slides from Bluescope Steel's earnings presentation, Aug 18, 2025
Slide 1: FY2025 Financial Results Presentation
FY2025 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer David Fallu Chief Financial Officer 18 August 2025 BlueScope Steel Limited. ASX Code: BSL Pictured: ABN: 16 000 011 058 Residential house in Esperance, WA, Level 24, 181 William Street, 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: FY2025 Highlights
FY2025 HIGHLIGHTS Performance in the face of challenging operating conditions demonstrates the resilience of BlueScope’s business model Underlying EBIT of $738M and ROIC of 6.2% despite external environment marked by cyclically soft conditions, volatility and global uncertainty • Delivered $293M in
Slide 5: FY2025 Financial Headlines
FY2025 FINANCIAL HEADLINES BlueScope’s profitability, despite depressed spreads, highlights business model resilience Underlying EBIT1 Underlying EBIT Return Reported NPAT On Invested Capital2 $738M 6.2% $84M Down $722M on FY2024, inclusive Down $601M on FY2024 Down from 11.9% for FY2024 of $439M BC
Slide 6: FY2025 Health & Safety Update
FY2025 HEALTH & SAFETY UPDATE Unwavering culture of learning and people-centred approach; enabled by engaging our people in designing solutions to deliver effective controls FY2025 Highlights Lead Indicators • Global “Refocus on Safety” program well embedded. Focus areas >1,800 Leaders involved in o
Slide 7: FY2025 Climate Action Update
FY2025 CLIMATE ACTION UPDATE Continuing our pursuit of emissions reduction projects in line with our 2030 steelmaking and non-steelmaking targets and 2050 net zero goal1 FY2025 Highlights Steelmaking target2 (92% of Group-wide Scope 1 and 2 emissions) GHG emissions intensity • BlueScope’s second Cli
Slide 8: FY2025 Sustainability Update
FY2025 SUSTAINABILITY UPDATE Embedding sustainability in all that we do Inclusion & Diversity Sustainable Supply Chain Regulatory Proceedings • Continuing to build on the strong • Continued work to improve • BlueScope has appealed the foundation of our inclusive culture responsible sourcing maturity
Slide 9: 1H FY2026 Group Outlook
1H FY2026 GROUP OUTLOOK1 • We are entering FY2026 with confidence. While macroeconomic conditions remain mixed, our multi-domestic strategy of prioritising in-market production sets us up strongly to manage the current environment. We are seeing signs of recovery in Australian construction and impro
Slide 10: Strategy and Growth to 2030
Strategy and growth to 2030 Pictured: B-Quick Ratchadaphisek Road branch in Bangkok, Thailand, featuring cladding in COLORBOND® steel Valiant Grey 10
Slide 11: Recap: BlueScope's Significant Earnings Growth Opportunity
RECAP: BLUESCOPE’S SIGNIFICANT EARNINGS GROWTH OPPORTUNITY Target annual EBIT improvement Cost and • Initial target $200M of initiatives commenced for delivery in FY2026 productivity $200M+ • Program to deliver further improvements initiatives • Targeted annual earnings contribution from growth init
Slide 12: Driving Cost and Productivity Improvement
DRIVING COST AND PRODUCTIVITY IMPROVEMENT Initiatives well progressed to deliver target $200M net annual earnings improvement in FY20261; reviewing further improvement opportunities Net saving Breakdown of FY2025 gross cost initiatives Direct Freight / other manufacturing • FY2025 net savings achiev
Slide 13: BlueScope's Target Growth to 2030
BLUESCOPE’S TARGET GROWTH TO 2030 Growth initiatives underway to drive $500M EBIT uplift to 2030, supported by macro normalisation Region North America Australia Asia & New Zealand Target EBIT improvement1 >$200M >$125M ~$150M2 Update on • North Star debottlenecking well • COLORBOND® and TRUECORE® A
Slide 14: Substantial Value in Adjacent Land Portfolio
SUBSTANTIAL VALUE IN ADJACENT LAND PORTFOLIO Over 1,000ha across three adjacent sites with compelling infrastructure access Port Kembla, NSW, Australia Western Port, VIC, Australia • ~200ha, 80km from Sydney on a • ~450ha, 60km from Melbourne, on a deep-water port deep-water port ~450 hectares Port
Slide 15: Substantial Value in Adjacent Land Portfolio
SUBSTANTIAL VALUE IN ADJACENT LAND PORTFOLIO Seeking to unlock value through staged development framework, retaining flexibility and control of strategic land assets that are synergistic with existing operations Potential land uses • Sites located with compelling port, rail and electricity Energy Lo
Slide 16: West Dapto Property Realisation
WEST DAPTO PROPERTY REALISATION Progressing near-term opportunities to realise value from the surplus West Dapto (NSW) land asset Residential land sale West Dapto Landholding (200ha) • 33ha of zoned residential land; potential for 350-400 lots in attractive urban land release area1 • Targeted for va
Slide 17: Consortium Review of Whyalla
CONSORTIUM REVIEW OF WHYALLA TEMPORARY IMAGE; TO BE UPDATED Working with Nippon Steel, POSCO and JSW • BlueScope is leading a consortium to review options for Whyalla Steelworks and magnetite mines • Prospective location for future production of lower emissions iron (eg DRI) for both domestic and ex
Slide 18: No Gas, No 'Future Made in Australia'
NO GAS, NO ‘FUTURE MADE IN AUSTRALIA’ • Australian manufacturing needs secure competitively priced natural gas – Gas prices 3-4x US and Middle East, and extremely difficult to contract supply – Prioritising massive exports over domestic market, since 2015 • BlueScope is a major gas user – Need 10x c
Slide 19: Business Performance
Business performance Pictured: Oak & Orange Dream Home in South West Rocks NSW, featuring a pergola in COLORBOND® steel Surfmist® 19
Slide 20: Australia
AUSTRALIA Similar half year performance on improved domestic despatches, offset by a slightly weaker mix Underlying EBIT ($M) 377 • Domestic despatches increased across all end-use segments during the half, though 119 262 mix was slightly weaker – COLORBOND® steel sales remained at 130 2H historical
Slide 21: Australia
AUSTRALIA Domestic despatches increased again in 2H FY2025, with growth in demand across all subsegments Total Australian domestic despatch volumes (kt) Dwelling • Demand pick-up in detached resi segment with gentle Total construction % shown in dark red improvement in approvals 74% 74% • Alteration
Slide 22: Australia: Underlying EBITDA per Tonne
AUSTRALIA Ongoing focus on shifting mix towards premium branded products combined with a focus on cost in steelmaking Asian steel spread1 & indicative steelmaking Asian steel spread1 & ASP EBITDA per tonne ($A/t) cash breakeven2 (US$/t) 550 Underlying EBITDA per tonne (A$/t) 800 FY25 indicative stee
Slide 23: North America
NORTH AMERICA Stronger result in 2H FY2025 on stronger spreads and volume at North Star and mixed performance across the Buildings & Coated Products reporting segment Underlying EBIT1 ($M) North Star 935 EBIT $267M in FY2025; $202M in 2H FY2025 • Significantly stronger realised spreads in 2H FY2025,
Slide 24: North America
NORTH AMERICA Resilient economy with sound consumption, despite tariff inflation risk. Auto demand solid, while non-residential strength reflects public investment plans Non-residential construction1 Automotive2 Manufacturing3 (Value of work put in place, US$Bn; ABI) (Light vehicle sales, annualised
Slide 25: Asia
ASIA Stronger performance on typical seasonality in China; similar results in India and Southeast Asia, with ongoing strength in Thailand Underlying EBIT ($M) South East Asia1 160 EBIT $113M in FY2025; $61M in 2H FY2025 139 64 • Stronger performance in 2H FY2025 led by higher volumes and robust marg
Slide 26: New Zealand and Pacific Islands
NEW ZEALAND AND PACIFIC ISLANDS Significantly lower result on continued impacts from soft macroeconomic conditions Indicative FY2025 performance Underlying EBIT ($M) under an EAF operating model 44 • Increased conversion costs in 2H • Future EAF operating model will 18 FY2025, led by significantly h
Slide 27: Underlying Group EBIT Variance
UNDERLYING GROUP EBIT VARIANCE Softer result in FY2025, predominantly due to softer spreads FY2025 vs FY2024 ($M) 2H FY2025 vs 1H FY2025 ($M) Net spread decrease $503M 1,339 Raw material costs1 ($M) (46) Coal (incl. lower coke margin of -$7M) 177 Iron ore 74 Scrap & alloys (including North Star scra
Slide 28: 1H FY2026 Regional Guidance
1H FY2026 REGIONAL GUIDANCE Outlook subject to assumptions and qualifiers referenced on page 9 North • Expect a result approximately one-third higher Australia • Expect a moderately better result than 2H FY2025, America than 2H FY2025 with benefit of profit on West Dapto partial land sale • North St
Slide 29: Financial Framework
Financial framework 29
Slide 30: Financial Framework Underpinning Resilience
FINANCIAL FRAMEWORK UNDERPINNING RESILIENCE Our principles that drive financial performance and disciplined allocation of capital Disciplined Returns Focus Robust Capital Structure Capital Allocation • ROIC > WACC on average through • Strong balance sheet, with a target • Invest to maintain safe and
Slide 31: Returns Focus
RETURNS FOCUS STRONG FOCUS ON ROIC; MAXIMISING CASH Targeting returns above cost of capital through the cycle; maximising cash flows to support investment pipeline Group ROIC1 (%) and invested capital2 ($Bn) Net cash flow ($M) (before investment exp and financing) $11.2Bn $12.0Bn $11.0Bn $9.1Bn $M F
Slide 32: Robust Balance Sheet
ROBUST BALANCE SHEET NET DEBT BELOW TARGET; AMPLE LIQUIDITY Strong balance sheet providing the foundation to deliver long term sustainable earnings and growth Net debt / (cash)1 ($M) Liquidity ($M) (undrawn facilities and cash) Net Debt Target Range ~$400M – $800M 3,317 3,172 3,132 2,929 2,8342 28 (
Slide 33: Disciplined Capital Allocation: Capital Expenditure
DISCIPLINED CAPITAL ALLOCATION CAPITAL EXPENDITURE Investing for sustainable earnings and growth Capital allocation framework CAPEX spending and forecast1 ($M) Major projects in forecast include: 6BF reline & upgrade2 • MCL7 in Western Sydney (growth) Operating Asset Sales Divestments • North Star d
Slide 34: Disciplined Capital Allocation: Shareholder Returns
DISCIPLINED CAPITAL ALLOCATION SHAREHOLDER RETURNS Over $3.8Bn returned since FY2017 30 cps 50% franked final dividend and extension of the on market buy-back program Dividends paid and buy-backs4 ($M) EPS • BlueScope’s capital management policy is to distribute at improvement1 (%) Dividend least 50
Slide 35: Summary and Q&A
Summary and Q&A Pictured: Coopers Brewery in Adelaide, SA, featuring roofing in COLORBOND® steel Surfmist® 35
Slide 36: BlueScope: A Leading Premium Steel Producer
BLUESCOPE: A LEADING PREMIUM STEEL PRODUCER WITH PROVEN RETURNS AND STRONG GROWTH TRAJECTORY • Advantaged platform in US, including best-in-class EAF facility Strategic Asset Base • Extensive Australasian manufacturing network and integrated value chains • A global leader in metal coating and painti
Slide 37: Questions
Questions Pictured: Ruapehu Hut in Horopito, New Zealand, featuring roofing and cladding in COLORSTEEL® Scoria 37
Slide 38: FY2025 Financial Results Presentation
FY2025 Financial Results Presentation Mark Vassella Managing Director and Chief Executive Officer David Fallu Chief Financial Officer 18 August 2025 BlueScope Steel Limited. ASX Code: BSL Pictured: ABN: 16 000 011 058 Residential house in Esperance, WA, Level 24, 181 William Street, Melbourne, VIC,