Boral — Investor Presentation (October 2020)
15 slides from Boral's investor presentation, Oct 27, 2020
Slide 1: Investor Conference Call
INVESTOR CONFERENCE CALL 27 October 2020 Sydney
Slide 2: Boral agrees to sell its 50% share in USG Boral to Knauf
USG Boral Boral agrees to sell its 50% share in USG Boral to Knauf Transaction highlights • Boral to sell its 50% interest in USG Boral for 3 2 South Korea US$1.015 billion China 4 8 • Represents an attractive multiple of 15.1 x FY2020 1 1 5 2 normalised EBITDA1 and ~11.3 x FY2019 EBITDA1 Middle Eas
Slide 3: Portfolio Review
Portfolio Review A rigorous internal review across every business and every geography For every business in every The review highlighted there are significant opportunities for geography, our internally-led improvement in almost every business we own review assessed: • Boral’s position, strengths Be
Slide 4: Australia: Opportunity to reduce costs and better leverage assets
Boral Australia Opportunity to reduce costs and better leverage assets Profitability metrics1 Opportunities FY16-20 17.5% Near term 15.1% • Become leaner, more nimble, more cost 14.6% 13.5% efficient (plans being fully developed) ROFE2 12.1% • Strengthen customer focus and accelerate 10.6% 10.7% dep
Slide 5: Australia: A great business, but more work to do
Boral Australia A great business, but more work to do Strengths Challenges ✓ Integrated positions in key regions • Cost base higher than it should be ✓ Innovative products • Increasing competitive pressures – imports, downstream, peak demand ✓ Strong brand • Strong infrastructure pipeline but projec
Slide 6: Boral North America: Performance has not met expectations
Boral North America Performance has not met expectations Profitability metrics1 FY16-20 Opportunities • Building products initiatives underway to 10.1% substantially strengthen returns, through: 9.5% › operational improvements (underway) ROFE2 › enhanced go-to-market strategies (underway) 6.1% › pro
Slide 7: Building products: Fundamentally good businesses with significant upside
Boral North America – Building products Fundamentally good businesses with significant upside; exploring third-party interest Strengths Challenges ✓ Strong brands • Sub-optimal integration and strategy development, despite good synergy gains ✓ Good positions in many geographies • Full value of busin
Slide 8: Light Building Products: A strong performer through the cycle
Boral North America – Light Building Products A strong performer through the cycle Findings Initiatives ✓ Innovative new product TruExterior® • Expanding distribution channels, and engaging in pull through activities Siding & Trim ✓ Growing steadily in attractive premium and ultra-premium categories
Slide 9: Roofing: Well positioned in an attractive market
Boral North America – Roofing Well positioned in an attractive market momentum Findings Initiatives Stone coated steel PINE-CREST shake ✓ Strong position in concrete tiles • Pricing improvements based on strong value proposition ✓ High brand awareness and customer engagement • Introduction of new co
Slide 10: Stone: Leading brand portfolio with high growth potential
Boral North America – Stone Leading brand portfolio with high growth potential Findings Initiatives Country Ledgestone Echo Ridge ‒ Cultured Country Stone Ledgestone: ✓ Leading premium brands with high • Reset and simplify pricing customer awareness • Upskilled salesforce and improved incentive ✓ Se
Slide 11: Fly Ash: Attractive cash generative business with a leading position
Boral North America – Fly Ash Attractive cash generative business with a leading position Strengths Challenges ✓ Attractive cash generative business • Pressure on royalties ✓ Leading position with extensive national • Medium term decline of coal-fired power coverage & customer relationships stations
Slide 12: Fly Ash: Securing the future of a leading innovator
Boral North America – Fly Ash Securing the future of a leading innovator Kirkland mine, Arizona Initiatives • Bolstering resources to accelerate strategies to assess and secure alternative sources of supply • Harvesting: Montour plant supplying customers at targeted monthly output equivalent to 100k
Slide 13: Q1 FY2021 trading update
Q1 FY2021 trading update Still not business as usual; ongoing uncertainty and challenges remain • Q1 USD earnings declined on lower • Fewer disruptions relative to previous six revenue and EBIT margin of ~12%, up months but still not business as usual slightly on pcp • Q1 revenue down 9% and EBIT do
Slide 14: Questions?
QUESTIONS? 27 October 2020 Sydney
Slide 15: Disclaimer
Disclaimer The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 27 October 2020. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the Group’s periodic re