Merrill Lynch Australasia Investment Conference, New York ASX Code: BSL
BlueScope Steel A Different Kind of Steel Company Page 2
We focus on total shareholder return - ASX Top 50 total shareholder return rankings from listing (15/7/2002) to 31/7/2004 175% 150% 125% 100% 75% BSL Dividend FY2004 FY2003 Variance Interim Ordinary 12 9 +33% Final Ordinary 18 13 +39% Special 10 7 +43% Total Fully Franked Dividends 40 29 +38% 50% 25% 0% -25% -50% -75% Page 3
-Fully integrated steel company - Adding value through the supply chain Illustrative PEB / Solutions Roll-forming Painted Metallic Coated Cold Rolled Hot Rolled Coil, Plate Slab Page 4
BlueScope Steel A global leader in adding value to Hot Rolled Coil 54 Increasing to 54% with recently announced CAPEX VALUE-ADDING CAPABILITY (Metal Coating Capacity as % of HRC Capacity) 46 47 45 44 42 40 40 A similarly strong downstream position in Painting #2 worldwide Rollforming #1 worldwide Pre Engineered Buildings #1 worldwide 37 36 33 31 28 25 25 25 23 20 20 20 20 17 16 16 15 15 15 15 13 12 12 11 11 10 9 9 9 7 7 7 6 5 3 2 NOTE: Compiled from the largest 60 steelmakers (excluding those who do not have flat steel metal coating capacity) Source: IISI World Steel in Figures 2004, CRU Steel Sheet Quarterly April 2004 Page 5
Applications of our downstream products Page 6
Return on Capital Contour 16% 14% BlueScope Steel 2004 12% 2003 EBIT Margin 10% 8% 6% 2000 2001 15% 4% 1999 2002 10% 2% 0% 1.0 1.5 2.0 2.5 Capital Turnover Page 7
Diverse and unique global production and marketing footprint Asia / Pacific 23 Roll Forming Sites 2 Butler PEB Manufacturing Plants (China) Thailand Cold Rolling 300kt Metal Coating 175kt +200kt Painting 90kt Malaysia Metal Coating 160kt Painting 70kt China footprint attached Indonesia Metal Coating 100kt Painting 50kt China MC 250kt Painting 150kt Vietnam MC 125kt Painting 50kt Brisbane Painting 88kt Coated and Building Products North America (Refer attached) North Star JV Hot Rolling 1.62mt +0.18 (100%) Castrip JV Port Kembla / Springhill Raw Steel 5.1mt Hot Rolling 2.4mt +400kt Plate 320kt Cold Rolling 930kt Tinplate/Blackplate 450kt MC (3 lines) 750kt + PL (2 lines) 207kt + Australia 7 Service Centres 27 Lysaght Sites Western Port Hot Rolling 1.43mt Cold Rolling 1.0mt MC (3 lines) 830kt + Painting (2 lines) 330kt + New Zealand Iron sand Mining Raw Steel 625kt Hot Rolling 750kt Cold Rolling360kt Metal Coating 230kt + Painting 60kt Hollow Sections 45kt Page 8
BlueScope Steel Lysaght and Butler China Footprint BlueScope Steel in China 1 Metal Coating/Paint Line facility (under construction) 5 Lysaght manufacturing facilities (incl. Taiwan) 60 Lysaght / CSC sales offices 2 Butler PEB manufacturing facilities 24 Butler district offices / sales offices Page 9
BlueScope Steel North American Sites BlueScope Steel in North America 1 Regional Office 4 BlueScope Steel Sales Offices 2 Joint Ventures 7 Butler Manufacturing Plants 12 Butler Sales / Engineering Offices 7 Vistawall Manufacturing / Fabrication Plants 12 Vistawall Sales Offices Page 10
Group financial headlines FY2004 Record financial results NPAT $584 million Up 29% to record EPS 77.8 Up 36% Return on Invested Capital 18.5% Improvement continues Total Dividend (including special) 40 Up 38% Gearing (net debt) 12.9% But for buyback and acquisition would be zero Net Cash Flow $315 million - Even after growth expenditure - Strength and provides flexibility Page 11
Our strategy PEB/Solutions Butler PEB/Solutions Rollforming Rollforming Painted Metallic Coated Vietnam China Vietnam China Thailand Painted Metallic Coated Australia & NZ Brownfields Australia & NZ Brownfields Water Cold Rolled Cold Rolled Hot Rolled Coil, Plate Slab HSM Expansion Hot Rolled Coil, Plate Slab Page 12
Butler Buildings North America No. 1 in PEBs Manufacturing Warehouse Retail Recreation Showroom Community Page 13
Vistawall products Page 14
Global steel industry - consolidation in OECD Production Share of Top 3 Steelmakers in each Region (%, 1998 vs 2003) US 55% EU 50% Japan 64% 33% USS, ISG, Nucor 98 03 31% Arcelor, LNM, Corus 98 03 49% JFE, NSC, Sumitomo 98 03 Source : POSCO, POSCO Growth & Innovation, Jan 04 Page 15
Dynamic global steel industry Europe CIS Japan North America Korea South America China India SE Asia Australia / New Zealand Page 16
Steel making raw material costs are increasing Iron Ore Coal Shipping 6,000 5,000 4,000 3,000 2,000 BDI Index 1,000 0 Nov-99 May-00 Nov-00 May-01 Nov-01 May-02 Nov-02 May-03 Nov-03 May-04 unprecedented demand and extremely tight supply position China reducing exports 2-3 Year backlog for shipbuilders SOURCE: ANZ Bank Resources Market Outlook, Mar 04 BDI Baltic Dry Index Iron Ore and Coal Aus-Japan Reference Prices Source: IISI, Baltic Dry Index, SSY Page 17
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Creating shareholder value as we grow Strong Strong Board Board & Management Team Team Profitable Profitable Through Through the the Cycle Cycle Dynamic Dynamic Global Global Steel Steel Market Market Value Value Added Added Branded Branded Products Products Growth Growth Opportunities in in Asia Asia A VERY DIFFERENT KIND OF STEEL COMPANY Strong Strong Operating Operating Track Track Record Record Strong Strong and and Flexible Flexible Capital Capital Structure Structure Consistently Strong Strong Cash Cash Flows Flows Geographic Geographic and and Product Product Diversity Diversity Low Low Cost Cost Producer Producer Page 19
Merrill Lynch Australasia Investment Conference, New York ASX Code: BSL