The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Lee Power - UBS Investment Bank, Research Division - Analyst
: If I just look at the profile of revenues over the last few years, and I know Cornerstone given a slightly different revenue number to you. So just
looking at their commercial metal coating sales numbers, in the last 3 years, it's gone from $157 million, $129 million to $215 million. I know you've
given that pro-forma EBITDA number of $44 million for '21. Is that just steel prices that's driven that growth? And maybe when we're thinking about
what's a sustainable EBITDA for this business? How should we think about that? Or if you could give what the margins have done in the last few
years, that would be really helpful.
Question: Lee Power - UBS Investment Bank, Research Division - Analyst
: Yes. And then I mean you mentioned that 60% utilization rate that seems quite low. You talked about even adding -- potentially adding capacity
or freeing up capacity in the business. Like why do you think it's so low? And what do you think the style of business should be running out ideally
in terms of capacity utilization?
Question: Lee Power - UBS Investment Bank, Research Division - Analyst
: Cool. And maybe just 1 more on the end market, if I can. So I mean Cornerstone has obviously got a sizable resi exposure, I'm assuming some of
that's metal roofing and some metal siding. It kind of would seem to me that Coil Coatings more skewed to the non-resi kind of commercial side,
but it would be helpful if you could break down that kind of 80% building and construction exposure into what's resi and non-resi?
Question: Lyndon Fagan - JPMorgan Chase & Co, Research Division - Analyst
: Just on the 900 capacity. How many years would it take you to -- do you think, to get anywhere near that given we're running quite a bit below
today?
Question: Lyndon Fagan - JPMorgan Chase & Co, Research Division - Analyst
: Sure. And look just a high-level question. Obviously, with the North Star expansion, and now these acquisitions in the U.S., the business is becoming
a lot more U.S. centric. I'm just wondering, does it make sense to have a U.S. listing for BlueScope or consider some sort of separation geographically,
just cognizant of the fact that BlueScope as a stock is trading at half the multiple of some of the steel stocks in the U.S.? And I'm just wondering if
that's on the radar for management and, I guess, what opportunities are there to get a re-rate for shareholders given that differential?
Question: Peter Steyn - Macquarie Research - Analyst
: I just want to carry on, on the Cornerstone supply agreement. Would it be your expectation that you'd in all likelihood remain a Cornerstone supplier
in the longer term beyond the 5 years? Or is there a strategic thinking that wants to diversify your position away from the Cornerstone in any way?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
APRIL 11, 2022 / 12:00AM, BSL.AX - BlueScope Steel Ltd Acquisition of US Coil Coatings Business
Question: Peter Steyn - Macquarie Research - Analyst
: And presumably, the deal would have been pretty vital to your short-term thinking around the asset as well from a visibility perspective? Or do
you think that you could have done...
Question: Peter Steyn - Macquarie Research - Analyst
: And then perhaps just a quick housekeeping. Just on timing and conditionality associated with the transaction. Obviously, Cornerstone is busy
with a whole bunch of its own things. I presume that's extending the time lines on the closure of this deal.
Question: Peter Steyn - Macquarie Research - Analyst
: Yes. understood that. Tania, best-case scenario, when would you think realistically you could close?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
APRIL 11, 2022 / 12:00AM, BSL.AX - BlueScope Steel Ltd Acquisition of US Coil Coatings Business
| 
