The Global Steel Industry: Innovation, Restructuring and Free Trade - - PowerPoint PPT Presentation

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The Global Steel Industry: Innovation, Restructuring and Free Trade - - PowerPoint PPT Presentation

Apr 25, 2023 11 likes •164 views

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

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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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SLIDE 2

BSL Annual 02/03 Presentation Page 2

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%

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BSL Annual 02/03 Presentation Page 3

Increased Financial Performance Across All Segments

97 12 57 71 471 44 119 84

100 200 300 400 500

FY02 FY03

Hot Rolled Products New Zealand Steel Coated Products Australia Coated Products Asia

A$ Millions

  • PKSW
  • Slab
  • HRC
  • Plate
  • NSBHP (50%)
  • Castrip
  • Western Port
  • Springhill
  • Packaging Products
  • Service Centres
  • Lysaght

EBIT Growth +386% +267% +109% +18%

Return on Net Assets (Pre-Tax)

25.7% 10% 9.3% 18.9%

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SLIDE 4

BSL Annual 02/03 Presentation Page 4

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
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BSL Annual 02/03 Presentation Page 5

Geographic Diversity

Australia 41% USA (NSBHPS) 13% Total Export 38% NZ 4% Australia 41% Asia Pacific 4% NZ 4% Asia Pacific 5% Total Export 37% USA (NSBHPS) 13%

Americas 14% Other 10% Asia 14% Americas 13% Other 5% Asia 19%

FY02

TOTAL EXTERNAL SALES – 6,028kt

FY03

TOTAL EXTERNAL SALES – 6,754kt

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SLIDE 6

BSL Annual 02/03 Presentation Page 6

Capacity upgrades across our business

Indonesia Metal Coating 90kt Painting 25kt +25kt Western Port Hot Rolling 1.43mt Cold Rolling 1.0mt MC (3 lines) 830kt +58kt Painting (2 lines) 330kt +23kt Brisbane Painting 88kt New Zealand Ironsand Mining Raw Steel 625kt Hot Rolling 750kt Cold Rolling360kt Metal Coating 210kt +24kt Painting 60kt

North Star JV Hot Rolling 1.62mt (100%) Castrip JV

Annualised production capacities and approved growth

Vietnam MC 125kt Painting 50kt Asia / Pacific 23 Roll Forming Sites Thailand Cold Rolling 300kt Metal Coating 175kt Painting 90kt Port Kembla / Springhill Raw Steel 5.1mt Hot Rolling 2.4mt Plate 320kt Cold Rolling 930kt Tinplate/Blackplate 450kt MC (3 lines) 750kt +34kt PL (2 lines) 193kt +50kt Malaysia Metal Coating 160kt Painting 70kt Australia 7 Service Centres 17 Roll Forming Sites

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SLIDE 7

BSL Annual 02/03 Presentation Page 7

Safety – World Class Performance

1.8 2.7 3.4 4 3.7 4.8 8 16 29 35 33 14 5 10 15 20 25 30 35 40 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Further 30% improvement in Lost Time Injury Frequency Rate . . . Our Goal is Zero Harm

Injuries resulting in lost time per million man-hours worked

* Includes contractors from 1996

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SLIDE 8

BSL Annual 02/03 Presentation Page 8

BHP Steel Limited

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BSL Annual 02/03 Presentation Page 9

Beijing International Airport

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BSL Annual 02/03 Presentation Page 10

China has enormous potential to further grow steel consumption

Steel Consumption and GDP/Capita

100 200 300 400 500 600 700 800 900 1000 1100 1200 10000 20000 30000 40000 GDP/capital (constant 1995$US) Usage kg/capita

Taiwan China Korea Japan

Source: IISI, World Bank, uses crude steel basis

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SLIDE 11

BSL Annual 02/03 Presentation Page 11

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SLIDE 12

BSL Annual 02/03 Presentation Page 12

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BSL Annual 02/03 Presentation Page 13

Australia – US FTA

Opportunities for Australian steel include:

  • Improved trade dispute resolution mechanisms
  • Investment facilitation
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SLIDE 14

BSL Annual 02/03 Presentation Page 14

Steelscape One Millionth Tonne

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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.