Boral — H1 2000/01 Earnings Presentation
14 slides from Boral's earnings presentation, Feb 14, 2001
Slide 1: Boral reports steady half year profit
Boral reports steady half year profit Boral’s 2000/01 Interim Results Rod Pearse 14 February 2001 Presentation outline • Features of the half year • Financial results • Segment overview ž Building Products ž Construction Materials ž USA • Outlook NOTE: Results & commentary in this presentation for p
Slide 2: Features of the half year
All Australian markets are under pressure Quarterly Value of Work Done - Australia 12000 10000 $98/99 ($000) 8000 6000 Dwellings 4000 Non-Dwellings 2000 0 Roads, Hwys, Subdivisions 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 -8 -8 -8 -8 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -0 -0 ec ec ec ec ec ec ec ec ec ec ec ec ec
Slide 3: EBIT down, profit after tax steady
Presentation outline • Features of the half year • Financial results • Segment overview ž Building Products ž Construction Materials ž USA • Outlook Presentation outline EBIT down, profit after tax steady A$ million Dec-00 Dec-99 % change Sales revenue 1,667 2,038 (18.2) EBITDA* 240 299 (19.7) EBIT*
Slide 4: Boral's balance sheet is stronger
Boral’s balance sheet is stronger Gearing Dec- Dec- % 90 A$ million 00 99 change 80 Net debt 854 1,298 (34.2) 70 Interest 37 45 (16.8) 60 50 Net D/E, % 47 73 40 EBIT/interest 4.9 4.0 30 cover, times 9 0 1 99 00 01 -9 -0 -0 ec ec ec n- n- n- Ju Ju Ju D D D Demerger target NTA/share $2.86 $2.73 4.8 Ac
Slide 5: Margins are holding better this cycle
Margins are holding better this cycle 12% EBIT*/Sales Margin % 10% 8% 6% 4% 2% 0% FY94/95 FY95/96 FY96/97 FY97/98 FY98/99 FY99/00 HY00/01 Results for reported building and construction materials businesses each year * before POSA and significant items Financial results Improved operational and portf
Slide 6: Australian operations feeling the downturn
Presentation outline • Features of the half year • Financial results • Segment overview ž Building Products ž Construction Materials ž USA • Outlook Presentation outline Australian operations feeling the downturn Sales, A$ million Dec-00 Dec-99 % change Building Products 529 716 (26.1) Construction
Slide 7: More focused portfolio, ROFE down
More focused portfolio, ROFE down Funds employed, A$m Dec-00 Dec-99 % change Building Products 841 1,047 (19.6) Construction Mat’ls 1,301 1,409 (7.7) USA 644 522 23.3 Other (97) (90) Total 2,689 3,068 (12.4) ROFE* % (annualised) Building Products 10.0 11.5 (13.0) Construction Mat’ls 8.3 12.0 (30.8)
Slide 8: Building products' earnings down
Building products’ earnings down Features: Plasterboard Bricks • Sharp decline in Aust housing • Prices in line with expectations Masonry • Strong turnaround in Asian plasterboard results through Timber Roofing JV Windows • C&C Products profits down significantly Sales down 26% to $529m • Timber pro
Slide 9: Construction materials down
Presentation outline • Features of the half year • Financial results • Segment overview ž Building Products ž Construction Materials ž USA • Outlook Presentation outline Construction materials down Contracting Features: Transport • Significant decline in dwelling / Concrete Asphalt non-dwelling volu
Slide 10: Construction materials "perform & grow"
Construction materials “perform & grow” Perform Scorecard • Benchmark / lift concrete margins ü Tightened price controls • Quarry step-change • Operational / SG&A improvements ü $30.5m savings • Reduce cement costs • Strengthen regional performance ü Benchmark & lift returns • Grow quarry end use ü
Slide 11: Increased USA earnings
Increased USA earnings Features: Flyash Bricks • Record A$ revenue and EBIT from USA Roof • Favourable exchange rate tiles effect, partly offset by fuel increases • 6% reduction in housing Sales up 17% to $377m • Good price management EBITDA up 14% to $78m • Strong results from bricks and EBITDA mar
Slide 12: Boral-wide "perform" initiatives progressing well
Boral-wide “perform” initiatives progressing well • $71m cost savings for last 6 months (target $68m) • SG&A down 24% • Focused stock management/capacity rationalisation § SA plasterboard plant mothballed § Moorebank brick plant mothballing announced § Greystanes asphalt plant closure § Shanghai pla
Slide 13: Dwelling approvals bottomed in Sept quarter
Presentation outline • Features of the half year • Financial results • Segment overview ž Building Products ž Construction Materials ž USA • Outlook Presentation outline Dwelling approvals bottomed in Sept quarter Total dwelling units approved, Australia (monthly, seasonally adjusted) 19000 Total Dw
Slide 14: Outlook
Outlook • Dwelling approvals bottomed, non-dwellings easing • US housing market softening • Lower revenues and earnings in 2H • Demerger strategies impacting favourably on margins & balance sheet • Stronger position to weather this downturn • Strong cyclical upturn forecast from calendar 2002 • Grow