Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Shareholder Meeting (November 2008)
25 slides from Bluescope Steel's shareholder meeting presentation, Nov 13, 2008
Slide 1: AGM Presentation - Managing Director & CEO Update
SH BLUESCOPE STEEL AGM Presentation - Managing Director & CEO Update Paul O'Malley, Managing Director and Chief Executive Officer 13 November 2008 Ze
Slide 2: Safety — Our target remains Zero Harm
juries per million man-hours worked Safety — Our target remains Zero Harm 65 14 | NSW Manufacturing : WI5 ! 2005 ~ 27.9 3 I 2006 - 24.4 2 1 2007 - 23.8 g F; e 0 & 8 Reported performance for 5 84 lislmember companies —_¢ «(employees & contractors) 3. ; 48 8 rn ai ~ = 4 35 35 3 28 3 = 2 18 45 1 [ 09 0
Slide 3: Extent of our Zero Harm Challenge
Extent of our Zero Harm Challenge jury Performance 07/08 e 25% increase in new employees; and 29.3 44 2 ¢ 90% increase in number of stand-alone manufacturing or distribution sites. oe = Number of Employees & stand-alone Sites ‘Asi LTIFR MTIFR ‘000 sa North America B BlueScope Steel a ‘0 "Q00 e Feith
Slide 4: For personal use only
For personal use only
Slide 5: Water conservation programs
Water conservation programs = Water an important element in steel- making "Major recycled water initiatives in place at Port Kembla and Western Port Steelworks « Port Kembla reaches 10 billionth litre moo IT SOWIS Page 3 ge
Slide 6: Water conservation programs
Water conservation programs " BlueScope Steel in partnership with Victorian government and South East Water undertaking major water recycling project at Western Port = Will cut fresh water use by 60% = Project completion by end 2009 Pages Le€
Slide 7: Carbon Pollution Reduction Scheme
Carbon Pollution Reduction Scheme " Federal government proposed a CPRS " Policy detail needs refining = Assistance to be set to address competitiveness = Effective and enforceable international action to cut emissions is required = Continue engaging with government on scheme design = Draft legislati
Slide 8: For personal use only
= Some <3) _— — _ o <= n o = a] GS
Slide 9: From the October 30th market update
From the October 30" market update = Expected strong first half result based on $430 million 1Q profit but second half challenging = Blueprint initiatives and momentum already paying off " Strong balance sheet * Solid cash position and gearing " Positive long term outlook driven by global steel dema
Slide 10: BlueScope is an outstanding business...
BlueScope is an outstanding business... Corporate / Group Australia New Zealand Asia North America Coated & Australian New Zealand Coated & Hot Rolled Coated & Industrial Distribution & Pacific Building Products Building Products & Solutions Islands Products North America Products Australia Products
Slide 11: BlueScope continues to pursue a strategy to maximise value
BlueScope continues to pursue a | strategy to maximise value and
Slide 12: The Blueprint is our tool for focusing on the key performance drivers
The Blueprint is our tool for focusing on the key performance drivers... KPI Extract: Australia/New Zealand Blueprint Basic 1. Increase Customer and Market Focus 2 Imnrava Productivity Year on Year 3. Optimise Return on Capital Rationale Key controllable drivers of revenue Remaining competitive with
Slide 13: Further detailed initiatives to improve cashflow & earnings
With further detailed initiatives to improve cashflow & earnings... Key Action Item R&M & Capex Working capital Labour cost Production scheduling Plant rationalisations Discretionary spend Significant reduction / slow down & deferral with focus on maintaining operational performance. Constrain growt
Slide 14: Balance Sheet — Gearing remains strong
Balance Sheet — Gearing (net debt to net debt + equity) remains strong... 50% 40% 5 35% 5 30% + 20% 4 10% 40% 1 Dec 312007 1M Feb12008 (1 June 30 2008 = Currently expect gearing to be within target range as at 31 December 2008 Page 14 Sr
Slide 15: Debt maturity profile significantly improved
AUDSM Debt maturity profile significantly improved...with sizeable committed and undrawn lines available PRE REFINANCING L POST REFINANCING | AUDSM a EA Working Cap MM 5 yr LNF F_4 364 day E_4 Bridge £7 3 yr LNF Wem usPP 7 7 AUD = 0.7991 USD (30 September 2008) Page 15 oF
Slide 16: For personal use only
For personal use only
Slide 17: Long term growth in steel demand
Long term growth in steel demand... APPARENT CRUDE STEEL CONSUMPTION (mtonnes) (5%) | 1,400 5 4,300 4 1,200 4 1,100 + 1,000 + 900 5 Brazil 800 + L_] Russia pa WB india ME China 600 4 Miius 500 + [—] West’n Eur (EU15) 400 + HB Japan 20- ZZ BB Row 200 + 100 5 0 Year Source: ISI Steel Statistical Yearb
Slide 18: Demand underpinned by urbanisation in China
_..with demand underpinned by urbanisation in China... 1,500,000 + @ 1,250,000 4 iJ oe — s 1,000,000 | 3 > Qa & 750,000 + 5 +s 200,000 + oa & x= © 250,000 4 0 a Urbanisation % [7 Rural population (thousands) || Urban population (thousands) _antl lll 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995
Slide 19: Steel intensity likely to increase
..and steel intensity likely to-increase CRUDE STEEL INTENSITY Kg/capita 12 e Taiwan 200 South Korea y ; (4970-2008) 10 to 15 1,000 | (1970-2008) 7. more years of 800 - strong ,_ Japan growth in 600 F China 955~2006) China (1979-20086) /2-~ se . _. , USA until steel mor 3 2S 7 yig00-2006) | intensit
Slide 20: For personal use only
For personal use only
Slide 21: Underlying Consolidated NPAT - strong first quarter / challenging second half
NPAT A$ Millions BlueScope Steel — Underlying Consolidated Net Profit After Tax (NPAT) - a strong first quarter / challenging second half 300 200 Underlying NPAT 305 511 Approx 430 O FY08-1H mW FY08-2H OFY09-1Q 1H 08 2H 08 Underlying 305 511 Reported 116 480 1Q FY 2009 (vs 2H FY08) Principal drivers
Slide 22: Business outlook - 2H FY2009 & FY2010 onwards
Business outlook - 2H FY009 & FY2010 onwards 2H - FY2009 Lower steel spread (vs 1H09) BF No.5 reline and sinter plant upgrade will proceed on schedule (March - June 2009) Delivery of synergy benefits from FY08 acquisitions Chollanaina morlat nanditians particularly in USA & Asia Acceleration of Blue
Slide 23: For personal use only
For personal use only
Slide 24: BlueScope is an outstanding company
BlueScope is an outstanding company > diversified business > low cost producer > strong brand & customer reach Operating today in a challenging environment Wall nasitinnad tn ha eurracefil haviand tha chart tarm nn tha back of renewed growth in the developing world With a focus on cashflow and balan
Slide 25: Managing Director & CEO Update
oe BLUESCOPE STEEL AGM Presentation - Managing Director & CEO Update Paul O'Malley, Managing Director and Chief Executive Officer 13 November 2008 3s
BlueScope Steel — Shareholder Meeting (November 2008) on 6ix