managing director & ceo update 2009 annual general meeting€¦ · managing director & ceo...
TRANSCRIPT
![Page 1: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/1.jpg)
Managing Director & CEO Update 2009 Annual General Meeting
Paul O’Malley, Managing Director and Chief Executive Officer12 November 2009
ASX Code: BSL
![Page 2: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/2.jpg)
Very good safety performance
![Page 3: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/3.jpg)
Page 3
16.0
14.0
8.0
4.8
3.54.1
3.52.8
1.8 1.50.9 0.8 0.80.6
0.91.2
0
2
4
6
8
10
12
14
16
18
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009FY
Lost
time i
njurie
s per
milli
on m
an-h
ours
worke
d
Medically Treated Injury Frequency RateLost Time Injury Frequency Rate
60.0
52.2
47.1
29.1
22.4 21.9
17.0
12.49.4 8.3 9.4
6.6 5.66.8 6.58.2
0
10
20
30
40
50
60
70
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009FY
Medic
ally t
reate
d inju
ries p
er m
illion
man
-hou
rs wo
rked
Includes Contractors from 1996Includes Butler from May 2004
Includes 2007/8 acquisitionsIncludes acquisitions for FY 07/08
Includes Contractor from 2004Includes Butler from May 2004
Includes 2007/8 acquisitionsIncludes acquisitions for FY 07/08
LTIFR and MTIFR FY 2009
![Page 4: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/4.jpg)
Page 4
BlueScope Distributions’ safety performance - pre and post acquisition
Lost Time Injury Frequency rate Medically Treated Injury Frequency rate
21.71
8.21 7.535.66
3.29 3.42 4.39 3.78 2.740.36
0.00
5.00
10.00
15.00
20.00
25.00
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
47.58
59.78
37.67 36.45 38.19 38.2631.34
27.42 26.19
13.27
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
Post Acquisition (August 2007)
![Page 5: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/5.jpg)
Tony Brown, Michael Carr and Paul de Bruyn
3 of several Western Port employees who volunteer with the CFA and SES
![Page 6: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/6.jpg)
Page 6
BlueScope’s contribution to Victorian Bushfire Recovery Program
$140,000 from employee donations$ 1 million in steel building products
Overalls, clothing and volunteers
![Page 7: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/7.jpg)
Page 7
BlueScope Steel supports communities around the world
![Page 8: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/8.jpg)
Page 8
Responding to environmental issues ….
![Page 9: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/9.jpg)
Page 9
Steel - most recycled material in the world
![Page 10: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/10.jpg)
Page 10
US Coast Guard Mobil, Alabama, USA
![Page 11: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/11.jpg)
Page 11
Ara Winery, Marlborough, New Zealand
![Page 12: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/12.jpg)
Page 12Armed Forces Development Command, Bangkok, Thailand
![Page 13: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/13.jpg)
Page 13
BlueScope has invested $500 million towards environmental projects globally
Western Port, Victoria
![Page 14: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/14.jpg)
Page 14
14 billion litres recycled water used in Port Kembla’s steelworks since 2006
Western Port recycling project will cut fresh water use by 65%
![Page 15: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/15.jpg)
Page 15
Australia’s Carbon Pollution Reduction Scheme (CPRS)
BlueScope committed to reducing its CO2 emissions
Participating in research for new, lower carbon steelmaking technologies to reduce emissions
CPRS must not damage BlueScope Steel’s international competitiveness
Two major concerns still to be addressed by the CPRS:Level of permit allocationReassurance about approach to Scope 3 emissions
![Page 16: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/16.jpg)
Page 16
A co-generation plant at PK Steelworks would be one of the largest GHG abatement projects in Australia. Would offset 1 million tonnes of GHG yearly = removing nearly 200,000 cars off the road annually.
![Page 17: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/17.jpg)
Page 17
Australia’s Carbon Pollution Reduction Scheme (CPRS)
• Government incentives needed for large-scale abatement projects
• Current CPRS will not provide an incentive
• Current CPRS must be amended so it does not impair our international competitiveness
![Page 18: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/18.jpg)
Page 18
$295 million cost savings in 9 months
• Flexible work practices saved BlueScope jobs
• Production volume related costs lowered: - China and Vietnam coated by ~ 40% - USA – Butler by 18%; Varco Pruden by 35%
• Reduced value of inventory on hand from $2.8 billion to $1.7 billion
• Capital expenditure significantly curtailed – apart from No 5 BF reline and Sinter plant upgrade projects
• Restructured debt facilities; raised additional equity funding; gearing was reduced to under 12%
![Page 19: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/19.jpg)
Page 19
Outlook for the global steel industry
![Page 20: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/20.jpg)
Page 2010 October 2009
-70
-60-50
-40
-30-20
-10
0
1020
30
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-0
8Ju
l-08
Aug-08Sep
-08Oct-
08Nov-0
8Dec
-08Ja
n-09Feb
-09Mar-
09Apr-0
9May
-09Ju
n-09
Jul-0
9Aug-09
US EU (27) ChinaIndia Asia ex. China & India S.AmericaMiddle East C.I.S.
%
China leading the recovery
Monthly Crude Steel Production (y-o-y%)
ChinaMiddle East
India
Asia (excl China/India)
![Page 21: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/21.jpg)
Page 21
China GDP rebounded from 6.1 % in 1st quarter to 8 % in 2nd quarter 2009, mainly due to its Government economic stimulus package
![Page 22: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/22.jpg)
Page 22
From 2009/2010, new projects to increase both railroad and expressways by around 20,000 km each
![Page 23: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/23.jpg)
Page 23
A buoyant China helps Australia’s economy which improves domestic steel demand
![Page 24: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/24.jpg)
Page 24
![Page 25: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/25.jpg)
Page 25
An Excellent Reference List of Over 2,000 Projects
![Page 26: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/26.jpg)
Page 26
India will increasingly become an important market for Australia
Our first rollforming and PEB facility - Pune, India
![Page 27: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/27.jpg)
Page 27
Outlook for the global steel industry
Trading conditions and outlook
Waiheke Island, New Zealand
![Page 28: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/28.jpg)
Page 28
Australia • No 5 Blast Furnace reignited 19 August
• Both furnaces now running 100% capacity
• Domestic markets recovering and expect: - Residential – moderate growth to continue - Non-residential – to remain depressed
• Export demand improving
• Subject to demand, intend running both furnaces at 100% into third quarter
• International prices moderated; Domestic prices likely to reduce in 3rd Q
New Zealand• Domestic despatches not yet recovered;
partly offset by export despatches
![Page 29: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/29.jpg)
Page 29
North America• Non-residential construction segment
remains weak• North Star BlueScope margins challenging
Asia• Positive results for all countries in 1st quarter• In South East Asia demand remains
generally strong• Looking to finish Indonesia’s 2nd coating and
painting line• Resuming production on Thailand’s 2nd
metallic coating line• China coated business keeps improving;
Buildings and Lysaght businesses have good order books
![Page 30: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/30.jpg)
Page 30
Outlook for 1st half FY2010
• Some positive developments but remain cautious
• Continue to expect to post a small loss for the 1st half year
• Further update provided at half year results in February 2010
![Page 31: Managing Director & CEO Update 2009 Annual General Meeting€¦ · Managing Director & CEO Update 2009 Annual General Meeting Paul O’Malley, Managing Director and Chief Executive](https://reader030.vdocuments.net/reader030/viewer/2022011903/5f0f53dc7e708231d4439cdc/html5/thumbnails/31.jpg)
Page 31
BlueScope Steel well placed for the recovery
Interventions taken early and swiftly
Due to support from shareholders, customers, employees and management.