Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990...
Transcript of Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990...
![Page 1: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/1.jpg)
BlueScope Buildings ChinaAnalyst presentationTim Lefebvre
November 24 2006
![Page 2: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/2.jpg)
Important Notice
THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFORMATION OR OPINIONS CONTAINED IN THIS PRESENTATION AND, SUBJECT ONLY TO ANY LEGAL OBLIGATION TO DO SO, BLUESCOPE STEEL DOES NOT ACCEPT ANY OBLIGATION TO CORRECT OR UPDATE THEM. THIS PRESENTATION DOES NOT TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR INVESTOR.
TO THE FULLEST EXTENT PERMITTED BY LAW, BLUESCOPE STEEL AND ITS AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, ACCEPT NO RESPONSIBILITY FOR ANY INFORMATION PROVIDED IN THIS PRESENTATION, INCLUDING ANY FORWARD LOOKING INFORMATION, AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ON ANYTHING CONTAINED IN OR OMITTED FROM IT OR OTHERWISE ARISING IN CONNECTION WITH THIS.
![Page 3: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/3.jpg)
BlueScope Steel China – an integrated group of focused businesses
Our Focus: derive maximum value from the growing China steel construction industry. The market will see improved building quality, thermal efficiency and steel consumption over the next 20 years.
BlueScope Steel China
CoatedInvested Capital A$281m
BuildingsInvested Capital A$255m
BlueScope Steel Suzhou Buildings North Buildings Central
Buildings South/West Lysaght Residential
Panels Vistawall
BlueScope Steel China
Coated Buildings
BlueScope Steel Suzhou Buildings North Buildings Central
Buildings South/West Lysaght Residential
Panels Vistawall
![Page 4: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/4.jpg)
BlueScope Buildings in China – A Shared History
1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola
1995 Lysaght set up 2 plants in Shanghai & Guangzhou and Butler built 1st plant in Shanghai
2000 Butler Shanghai phase II was completed and new plant Tianjin
2003 Lysaght built Langfang & Chengdu plants and Vistawall plant in Shanghai
2004 BlueScope Steel acquire Butler Manufacturing Co - BlueScope Buildings formed
2005 BlueScope Buildings Tianjin added phase II (Add Structural Line)
2006 Coating plant in Suzhou and new Buildings Guangzhou combined capability
2006 BlueScope Steel built insulated panel facility in Langfang
Completed over 3,300 projects in China
Total China asset base US$350m with more than 2,000 employees!
![Page 5: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/5.jpg)
Our Unparalleled Strong “Local” Network
BlueScope Steel 1 Metal Coating & Painting facility7 Solutions manufacturing facilities
Over 70 sales offices
Chengdu• Buildings
Langfang Tianjin• Buildings (2)
Shanghai• Buildings (2)
Guangzhou • Buildings
Suzhou• Coating and
Painting Facility
Urumqi
Chongqing
Xian
Xiamen
Guangzhou
Shanghai
Tianjin
![Page 6: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/6.jpg)
World Class Building Manufacturing Sites
![Page 7: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/7.jpg)
BlueScope Butler China Manufacturing Facilities
Shanghai Plant Vistawall Shanghai
Tianjin Plant
![Page 8: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/8.jpg)
BlueScope Lysaght China Manufacturing Facilities
Shanghai Plant Langfang Shanghai
Chengdu Plant
![Page 9: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/9.jpg)
Our New Combined Facility in Guangzhou
![Page 10: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/10.jpg)
Some Highlights Showing Safety is a Core Activity
Kangqiao 7 years since last LTI
Guangzhou 11 years since last LTI3 years since last MTI
Chengdu & Langfang No LTI since start up
Tianjin 2 years since last MTI
![Page 11: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/11.jpg)
Single Source Service – A breakthrough in Chinese Construction
Design
Manufacturing
Project ManagementTransportation
On-Site Consultation
ConstructionServices
Local Support
Building Solution
Value Engineering
![Page 12: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/12.jpg)
An Integrated Strategy – Derived Value from Internal Supply
PUBLIC BUILDINGS
POWER STATIONS
RESIDENTIAL
INDUSTRIAL
COMMERCIAL
TRANSPORT
HIGH RISE
![Page 13: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/13.jpg)
A Strong Position for PEB in China
Sales Ranking for Top 10
In the Metal Structure Industry (2005)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Butler B C D E F G H I J
Source Dun & Bradstreet
![Page 14: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/14.jpg)
Our Channel to Market
BlueScopeBuildings
Steel
Building
GeneralContractor
BUTLERBuilder
Design
Institute
Export
![Page 15: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/15.jpg)
The Pre-Engineering Buildings Process
Owner’s Concept
Design team develops fully engineered
solution
Customer Tour
Manufacturing
Final Contract Negotiation
Deliver a high quality, complete building solution
100% Customer Satisfaction
Detailed discussions to
finalise project design
![Page 16: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/16.jpg)
BlueScope Butler Market Focus by Industrial Segment
End Usage Analysis by Industry (m2)(2001 thru Sept 2006 )
Pharmaceutical7%
Textile9%
Aviation1%
Supermarket12%
Chemical3%
Food3%
Furniture6%
Electronics17%
Logistics14%
Automotive16%
Hi-Tech11%
![Page 17: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/17.jpg)
Solutions for a Wide Range of Industries
ManufacturingInfrastructure
Pharmaceutical Commercial & Retail
![Page 18: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/18.jpg)
A Focussed Sales Force – Chinese Strategic and Multi National Accounts
Chery - WuhuChery - Wuhu SGM - PudongSGM - Pudong
Fuyao - FuqingFuyao - Fuqing Yanfeng Ford - ShanghaiYanfeng Ford - Shanghai
![Page 19: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/19.jpg)
Major Clients – Key International Alliances
![Page 20: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/20.jpg)
Major Clients – Key Local Alliances
![Page 21: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/21.jpg)
Major Clients – Key Local Alliances
![Page 22: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/22.jpg)
Many Multi-National Strategic Accounts
![Page 23: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/23.jpg)
Export is an Opportunity
Butler China has exported over 40 projects with total area over 273,000 Sqmmaterials to Korea, Australia, Russia, India, Vietnam, Philippine, Syria, Saipan, Kazakhstan and Niger. In the near future, we will surely have business in Mauritius, Nigeria, Ghana, Ukraine and Brazil as well.
![Page 24: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/24.jpg)
The Integrated Offer provides “peace of mind” for our customers
CUSTOMER DESIGN MANUFACTURE PROJECTMANAGEMENT
INSTALLATIONSUPPORT
![Page 25: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/25.jpg)
Engineering is Our Strength
Certificate of ISO 9001 Quality Assurance System
Manufacturing Certificate by Shanghai Construction Committee
Design Certificate by China Ministry of Construction
Underwriters Laboratories Class -90 Certificate
Factory Mutual Certificate
Triple A Credit Enterprise
![Page 26: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/26.jpg)
Strong engineering capability in our experienced people
Engineering Staff Professional Title
01020
3040
5060
7080
90100
Butler Shanghai 16 8 71 39
Butler Tianjin 6 9 20 24
Butler China 22 17 91 63
1st Class Registered Senior Engineer Engineer Assistant Engineer
![Page 27: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/27.jpg)
Retention is a Key Factor
Retaining the right PeoplePay for performance cultureShare success – Bonuses, BlueScope Steel share award
23.0%
22.5%
14.5%
2.0%
62.0%
100.0%
162.0%
0% 20% 40% 60% 80% 100% 120% 140% 160% 180%
Housing
Pensio
Medical
Un-employment
Benefit Total
Base Salary
Grand Total
Salary and Benefit Structure
Recruiting the right peopleEducation / experience as well as attitude, stability, commitment, and fitness with BlueScope Steel culture
0102030405060
% of Employees by Qualification
Master Bachelor DiplomaTechnical High School Primary School
![Page 28: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/28.jpg)
A Capable Buildings Business
![Page 29: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/29.jpg)
Our Buildings Options
PEMB Building Systems
![Page 30: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/30.jpg)
PEB Manufacturing – Make-up of Products
Structural Frames Vs. Claddings Production
Claddings41%
Frames59%
% Plant Production
MR-2430%
Stylwall1%
BRII17%
Truss1%Components
18%
Purlin33%
![Page 31: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/31.jpg)
Butler Ingredient Products
MR-24 Roof System
CMR-24 Roof System
BR-II Roof and Wall Panel Flat Stylwall Panel
NECTERE Sandwich Panel
Purlins Frames
![Page 32: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/32.jpg)
Lysaght Broad Product Range
KLIP-LOK®®
TRIMDEK®®SEAMSEAM--LOKLOK®®
PANELRIB®®
FLEXFLEX--LOKLOK®® CUSTOM BLUE ORBCUSTOM BLUE ORB®® MINI ORBMINI ORB®®
MULTIMULTI--CLADCLAD®®
DECKINGDECKINGCUSTOM ORBCUSTOM ORB®® PurlinPurlin
![Page 33: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/33.jpg)
New Products – Architectural Panels
![Page 34: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/34.jpg)
The local sales force must act “like tigers”
1999 2000 2001 2002 2003 2004 2005 2006
Butler Quote Activities
Volume Num.
![Page 35: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/35.jpg)
A Constant Focus on Cost Reduction
Main Elements of a Building by Cost
Primary35%
Secondary15%
Wall Panel10%
Roof Panel15%
BOI16%
Freight4%
Service2%
Engineering3%
BOI Buy Out Items
![Page 36: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/36.jpg)
There are some key challenges which must be tackled
Challenge 3Increase use of steel in
construction
Challenge 1Profitably fill capacity
Challenge 2Margin improvement
Our Focus is• Sales force deployment• Sharpen product and Service offer• Focus on urbanisationgrowth areas• Optimise sales office network• Professional sales development
Our Focus is•The BUTLER brand•Strategic customer alliances• Enhance value offer• Grow Builder network
Our Focus is• Increase steel penetration in residential construction• Introduce new products to our range• Involvement in thermal Chinese codes• Increase structural flooring in high rise applications
![Page 37: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/37.jpg)
BlueScope Buildings – Strength Going Forward
Very strong, consistent growth achieved to date in ChinaAn excellent network of operations and officesA robust suite of brands and premier market positionAn experienced local management team
Significant further growth opportunities remain :Ongoing economic growth;New products to enhance our offer;Inter-material replacement;Leverage BlueScope Steel solutions and network within Greater China and elsewhere
![Page 38: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/38.jpg)
BlueScope Buildings China
![Page 39: Analyst presentation - Amazon S3€¦ · BlueScope Buildings in China – A Shared History 1990 Lysaght Hong Kong company founded and Butler sold its 1st project - Motorola 1995 Lysaght](https://reader031.fdocuments.us/reader031/viewer/2022013023/5fb309805c2fff1d95333651/html5/thumbnails/39.jpg)
BlueScope Buildings ChinaAnalyst presentationTim Lefebvre
November 2006