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Bluescope

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Submitted By Yolandaqiu
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PART I THE VALUATION OF BLUESCOPE FOR THE RESTRUCTURE
1. Historical Financial Performance According to BlueScope Steel Limited consolidated financial headlines, the total revenue of BlueScope kept slightly increasing from 2003 to 2008. However, there is a significant fluctuation of revenue in recent three years. As a result, the EBIT and NPAT suffered a tremendous decrease from 2008 to 2009. And BlueScope generated its first loss (YR 2009) on NPAT shown negative A$66 million which is caused by the 20% increasing of operation expense on raw materials. In addition, the continuously increasing in asset impairment expense for the recent three years makes the highest loss on NPAT in 2011 (negative A$1,054million).

The Total Revenue, EBIT, NPAT of BSL from 2003 to 2011
(A$million) 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 (1,000) (2,000)

Total Revenue EBIT NPAT

2003 2004 2005 2006 2007 2008 2009 2010 2011

According to the financial analysis about the business segmentation, BlueScope Steel make more money from its overseas businesses than its Australian businesses. One reason of the poor Australian business is because of losing money on the export business for more than three years. Its lost was nearly A$500 million on its Australian export business which leads to a net loss of just over A$1 billion in 2011 so BlueScope has decided to stop exporting (The Sunday Morning Heralds, 2011). Deeply analyzing on currently three years, four key ratios which are return on invested capital, return on equity earnings per share and dividend payout ratio are analyzed to evaluate the financial performance of BlueScope . All of the four have been varied on negative outcome started in 2009 and produced the worst performance in 2011. From 2009 to 2010, return on invested capital had been dropped from 18.2% to 0.2% which was because of the declining

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