The Global Steel Industry: Innovation, Restructuring and Free Trade Brian Kruger, Chief Financial Officer David Goodwin, Executive Vice President Corporate Affairs 17 October 2003 Originally issued by BHP Steel. On 17 November 2003 BHP Steel became BlueScope Steel Limited .
FY2003 – A Very Good Start for BSL Seized market opportunities and drove business improvements • Revenue $5.3 billion First time above $5.0 billion. • Despatches 6.8 million metric tonnes Record shipments. • NPAT $452 million • EPS 57.1¢ • DPS 22¢ Fully Franked Scheme Booklet Forecast was 20 ¢ 0/40% Franking. • Special Dividend 7 ¢ Fully Franked • Return on Invested Capital 14.5% • Net Cash Flow $598 million • Buyback (30 June 2003) 8.3 million shares 27 August 2003 21.9 million shares. • Debt Reduced By $540 million To $168 million. • Gearing (net debt) 2.4% BSL Annual 02/03 Presentation Page 2
Increased Financial Performance Across All Segments FY02 FY03 500 471 • PKSW - Slab 400 - HRC - Plate • NSBHP (50%) 300 • Castrip A$ Millions • Western Port • Springhill • Packaging Products • Service Centres 200 • Lysaght 119 97 84 100 71 57 44 12 0 Coated Products Australia Coated Products Asia Hot Rolled Products New Zealand Steel EBIT Growth +386% +267% +109% +18% Return on Net 25.7% 10% 9.3% 18.9% Assets (Pre-Tax) BSL Annual 02/03 Presentation Page 3
North Star BHP Steel – Delta, Ohio • Ownership – 50 – 50 joint venture between BHP Steel and North Star Steel – North Star Steel is a wholly owned subsidiary of Cargill Inc. • The JV was formed in March 1995; production commenced 1996 • Steel mini-mill at Delta, Ohio • 100% sales are domestic into North America • 330 employees BSL Annual 02/03 Presentation Page 4
Geographic Diversity FY02 FY03 TOTAL EXTERNAL SALES – 6,028kt TOTAL EXTERNAL SALES – 6,754kt USA (NSBHPS) 13% USA (NSBHPS) Australia Australia 13% 41% 41% Americas Americas 13% 14% Total Export Other 38% 10% Other Asia 5% Asia Total Export 14% 19% 37% NZ Asia Pacific NZ 4% 4% 4% Asia Pacific 5% BSL Annual 02/03 Presentation Page 5
Capacity upgrades across our business Annualised production capacities and approved growth Asia / Pacific North Star JV 23 Roll Forming Sites Hot Rolling 1.62mt (100%) Castrip JV Vietnam Thailand MC 125kt Cold Rolling 300kt Painting 50kt Metal Coating 175kt Painting 90kt Brisbane Painting 88kt Port Kembla / Springhill Malaysia Raw Steel 5.1mt Metal Coating 160kt Hot Rolling 2.4mt Painting 70kt Indonesia Plate 320kt Metal Coating 90kt Cold Rolling 930kt Painting 25kt +25kt Tinplate/Blackplate 450kt MC (3 lines) 750kt +34kt PL (2 lines) 193kt +50kt New Zealand Australia Western Port Ironsand Mining 7 Service Centres Hot Rolling 1.43mt Raw Steel 625kt 17 Roll Forming Sites Cold Rolling 1.0mt Hot Rolling 750kt MC (3 lines) 830kt +58kt Cold Rolling360kt Painting (2 lines) 330kt +23kt Metal Coating 210kt +24kt Painting 60kt BSL Annual 02/03 Presentation Page 6
Safety – World Class Performance Further 30% improvement in Lost Time Injury Frequency Rate . . . Our Goal is Zero Harm 40 Injuries resulting in lost time per million man-hours worked 35 35 33 29 30 25 20 16 14 15 10 8 4.8 4 3.7 5 3.4 2.7 1.8 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 * Includes contractors from 1996 BSL Annual 02/03 Presentation Page 7
BHP Steel Limited BSL Annual 02/03 Presentation Page 8
Beijing International Airport BSL Annual 02/03 Presentation Page 9
China has enormous potential to further grow steel consumption Steel Consumption and GDP/Capita 1200 1100 Taiwan 1000 Usage kg/capita 900 Korea 800 700 600 500 Japan 400 300 200 100 China 0 0 10000 20000 30000 40000 GDP/capital (constant 1995$US) Source: IISI, World Bank, uses crude steel basis BSL Annual 02/03 Presentation Page 10
BSL Annual 02/03 Presentation Page 11
BSL Annual 02/03 Presentation Page 12
Australia – US FTA Opportunities for Australian steel include: • Improved trade dispute resolution mechanisms • Investment facilitation BSL Annual 02/03 Presentation Page 13
Steelscape One Millionth Tonne BSL Annual 02/03 Presentation Page 14
The Global Steel Industry: Innovation, Restructuring and Free Trade Brian Kruger, Chief Financial Officer David Goodwin, Executive Vice President Corporate Affairs 17 October 2003 Originally issued by BHP Steel. On 17 November 2003 BHP Steel became BlueScope Steel Limited .
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