Boral — Corporate Update (May 2020)
20 slides from Boral's corporate update, May 15, 2020
Slide 1: ASX Release: Completion of new debt facilities and COVID-19 update
ASX RELEASE 15 May 2020 Completion of new debt facilities and update on COVID-19 impacts Boral Limited (“Boral” ASX: BLD) today announced that it has increased and extended its debt financing facilities with a new US Private Placement (USPP) note issue of US$200m; approvals for new bilateral two-yea
Slide 2: Cash preservation actions and COVID-19 trading conditions
In light of the ongoing impacts of COVID-19 measures, Boral continues to take decisive actions to preserve cash and optimise outcomes, including by: Reducing costs and discretionary expenditure, including labour costs, across the business Right-sizing operations including shift reductions and te
Slide 3: Conference call details and investor relations contact
More information about Boral’s response to COVID-19 can be found at boral.com/covid19-updates A conference call for investors will be held today 15 May 2020, at 11.00 am (AEST) for the CEO and CFO to present on Boral’s liquidity and response to COVID-19 impacts (refer to attached slides). Conference
Slide 4: Response to COVID-19: Investor Update Presentation
Response to COVID-19: Investor Update Presentation 15 May 2020 Mike Kane, CEO & Managing Director Ros Ng, Group President Ventures & CFO 1
Slide 5: Agenda
Agenda Responding to COVID-19 impacts with strong liquidity Trading conditions – CY2020 to date Questions Boral’s Peppertree Quarry, New South Wales 2
Slide 6: Strong foundations to respond to COVID-19 impacts
Strong foundations to respond to COVID-19 impacts Safety track record Effective systems Leading network Financial strength and commitment to and management and supply chain with a robust ZERO HARM TODAY processes to flexibly respond balance sheet Allowed and encouraged to Crisis Management Team
Slide 7: Financial strength with enhanced liquidity
Financial strength with enhanced liquidity Protecting Boral’s financial sustainability Cash on hand Cash & borrowings • Reactivated DRP for the interim dividend, which was Undrawn bilateral facilities fully underwritten for dividend paid on 15 April 2020 pro-forma maturity profile1 Outstanding debt4
Slide 8: Liquidity movements
Liquidity movements Increased and extended debt finance facilities and solid cash management is supporting strong liquidity • Current liquidity (cash + undrawn facilities) of A$1.30b strengthened A$ million from A$1.14b at 31 Dec-19 130 • Repayments of CHF150m (A$250m) 306 Swiss notes in Feb-20 and
Slide 9: Responding to COVID-19 impacts in Boral Australia
Responding to COVID-19 impacts in Boral Australia In Australia, Boral has been allowed and encouraged to safely operate • Where we have sufficient inventory, production curtailments are taking Boral Australia place, eg. shift reductions and temporary plant shuts: • Boral is part of essential constru
Slide 10: Responding to COVID-19 impacts in North America
Responding to COVID-19 impacts in North America Adapting to a range of restrictions while continuing to supply customers; activity is continuing to slow • Full or partial mandated temporary plant closures: Boral North America — Michigan – Metamora light building products full closure; brick plant pa
Slide 11: Responding to COVID-19 impacts in USG Boral
Responding to COVID-19 impacts in USG Boral Across Asia restrictions have varied from country to country; continuing to operate in Australia • Closure orders have impacted: USG Boral — China production & sales – production resumed late-Feb and quickly ramping up • Allowed to operate and supply custo
Slide 12: Trading conditions for 2HFY20 year to date (Jan-Apr-20)
Trading conditions for 2HFY20 year to date (Jan-Apr-20) A challenging 2HFY20 due to January bushfires in Australia and COVID-19 impacts: • Revenues down in most businesses for the first four months relative to pcp1 • With volume and cost pressures, 2HFY20 EBITDA margins (Jan-Apr) tracking ~3-5% lowe
Slide 13: Questions
Questions Boral’s new road train at the Wellcamp Quarry, Toowoomba, Qld 10
Slide 14: Appendix – supplementary information
Appendix – supplementary information Plant upgrade at Deer Park Quarry, Vic USG Boral supplied FIBEROCK® to Karratha Health Campus, WA 11
Slide 15: An extremely busy and challenging start to CY2020
An extremely busy and challenging start to CY2020 21 January 19 March First US COVID-19 case confirmed 11 March Australia closes External event 25 January WHO classifies 13 January international borders First case reported in Australia COVID-19 as a First case of pandemic 23 March Boral internal res
Slide 16: ZERO HARM safety focus
ZERO HARM safety focus Where we are allowed to operate, and we can do so in a safe way, we are supplying customers • In many jurisdictions Boral is allowed and encouraged to operate as an essential industry • Safety of our people, customers and community remains our #1 priority • Operating with stri
Slide 17: Effective processes and experienced team
Effective processes and experienced team Where we are allowed to operate, and we can do so in a safe way, we are supplying customers • Crisis Management Team activated, with ongoing meetings chaired by CEO • Expert advice / support from International SOS and Control Risks • Strong Board engagement –
Slide 18: Leading network & supply chain to flexibly respond
Leading network & supply chain to flexibly respond Three scaled divisions supplying products and services to construction and other essential industries Boral Australia Boral North America USG Boral (50% JV) 396 operating sites1 223 operating sites1 53 operating sites1 Quarries Asphalt Fly Ash Light
Slide 19: 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, 15 May 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 report
Slide 20: Boral Limited www.boral.com
Boral Limited www.boral.com