Boral — Shareholder Meeting (November 2014)
19 slides from Boral's shareholder meeting presentation, Nov 6, 2014
Slide 1: Annual General Meeting 2014 – Chairman's Address
ANNUAL GENERAL MEETING 2014 6 November 2014 Sydney Chairman’s Address Dr Bob Every AO
Slide 2: Improving market conditions; FY2014 full year financial highlights
Improving market conditions across all regions Positive movements across most markets except roads and highways in Australia FY2014 vs FY2013 USA5 Asia1 Total housing starts 9% Korea Single-family housing starts 5% Thailand China Indonesia Australia RHS&B (VWD)2 10% Non-residential (VWD)3 5% Total h
Slide 3: A positive turnaround in FY2014; Capital management
A positive turnaround in FY2014 Stronger result reflects restructuring & improvement initiatives and better market conditions $1.6b USG Boral joint venture – securing world-leading NextGen plasterboard technology $48m EBIT turnaround to profitability for Building Products division Significant
Slide 4: Return on average funds employed; Fix, Execute, Transform program
Return on average funds employed (ROFE) Year-on-year improvement but still considerable work to do EBIT1 to average funds employed (ROFE), % 15% 11.5% 6.6% 4.7% 4.7% FY2012 FY2013 FY2014 FY2017 Long-term LTI Hurdle2 target 1. Excluding significant items 7 2. Hurdle at which 100% of ROFE LTI componen
Slide 5: Board of Directors; CEO & MD's Address
Board of Directors Dr Bob Every AO Dr Eileen Doyle Paul Rayner Richard Longes Non-executive Chairman Non-executive Director Non-executive Director Non-executive Director (retiring at end of 2014 AGM) Mike Kane Dr Brian Clark John Marlay Catherine Brenner Kathryn Fagg CEO & Managing Director Non-exec
Slide 6: Boral's Fix, Execute, Transform program
Boral’s Fix, Execute, Transform program Fix phase well advanced and delivering improved performance FIX EXECUTE TRANSFORM 2 years FY2013 4 years 6 years + Fixing things that are Improving the way we Transforming Boral for holding us back operate to be more performance excellence efficient, disciplin
Slide 7: Reshaping the portfolio
Reshaping the portfolio Streamlining through restructuring and improvement initiatives Construction Building Products Boral Gypsum Boral USA Materials & Cement Cement: Strengthened Windows business Completed the $1.6b Roofing: further import capability after divested USG Boral capacity conso
Slide 8: Boral Construction Materials & Cement – 1Q FY2015 Trading Update
Boral Construction Materials & Cement Concrete, Quarries, Cement, 1Q FY2015 Trading Update Asphalt, Transport and Property • Demand levels broadly steady − Strong residential activity in NSW Revenue EBIT1 A$ million A$ million − Weaker roads & engineering volumes − Weaker than expected activity in Q
Slide 9: Boral Building Products and Boral Gypsum – 1Q FY2015 Trading Update
Boral Building Products 1Q FY2015 Trading Update Australian Bricks, Roofing1 and Timber • Continued performance improvement due to: − Higher residential activity in NSW & WA Revenue EBIT2 A$ million A$ million − Overhead cost reduction program • Responding to ACCC’s Statement of Issues on proposed e
Slide 10: Boral USA; Concluding Comments
Boral USA Bricks, Roof Tiles, Cultured Stone, 1Q FY2015 Trading Update Fly Ash, Construction Materials • Performance broadly in line with our expectations Revenue EBIT1 − Total housing starts for 1Q FY2015 at A$ million A$ million 1.024 million annualised starts − Improved Cladding & Roofing volumes
Slide 11: How we're transforming Boral; Formal Business
How we’re transforming Boral For performance excellence and sustainable growth through innovation Lowering our fixed costs and environmental impacts Costs Time A high performing, aligned and participative culture Investing in product innovation and creating new opportunities 21 Annual General Meetin
Slide 12: Item 1 – Financial Reports
Item 1 – Financial Reports To consider the Financial Report, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2014 23 Remuneration & Nomination Committee Chairman Dr Brian Clark
Slide 13: Item 2 – Remuneration Report
Item 2 – Remuneration Report To adopt the Remuneration Report for the year ended 30 June 2014 25 Item 2 – Remuneration Report Proxies Proxies For 539,030,489 Open 5,469,978 Against 6,679,511 % to be cast FOR the resolution* 98.4% * On basis open proxies in favour of the Chairman of the Meeting are v
Slide 14: Item 3 – Election and re-election of Directors
Item 3 – Election and re-election of Directors 3.1 To elect Kathryn Fagg as a Director 3.2 To re-elect Brian Clark as a Director 3.3 To re-elect Paul Rayner as a Director 27 Item 3.1 – To elect Kathryn Fagg as a Director 28
Slide 15: Item 3.1 – Elect Kathryn Fagg; Item 3.2
Item 3.1 – To elect Kathryn Fagg as a Director Proxies Proxies For 544,486,223 Open 5,506,128 Against 855,909 % to be cast FOR the resolution* 99.5% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 29 Item 3.2 – To re-elect Brian Clark as a Director 30
Slide 16: Item 3.2 – Re-elect Brian Clark; Item 3.3
Item 3.2 – To re-elect Brian Clark as a Director Proxies Proxies For 544,312,029 Open 5,531,434 Against 1,054,256 % to be cast FOR the resolution* 99.5% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 31 Item 3.3 – To re-elect Paul Rayner as a Director 32
Slide 17: Item 3.3 – Re-elect Paul Rayner; Item 4
Item 3.3 – To re-elect Paul Rayner as a Director Proxies Proxies For 543,579,123 Open 5,512,036 Against 1,778,474 % to be cast FOR the resolution* 99.3% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 33 Item 4 – Award of LTI and deferred STI Rights to Mike Kane To con
Slide 18: Item 4 – Award of LTI and deferred STI Rights; Item 5
Item 4 – Award of LTI and deferred STI Rights to Mike Kane Proxies Proxies For 538,252,247 Open 5,257,296 Against 7,812,949 % to be cast FOR the resolution* 98.2% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 35 Item 5 – Non-executive Directors’ Fee Pool To consider
Slide 19: Item 5 – Non-executive Directors' Fee Pool
Item 5 – Non-executive Directors’ Fee Pool Proxies Proxies For 539,847,343 Open 5,121,755 Against 5,918,936 % to be cast FOR the resolution* 98.6% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 37 ANNUAL GENERAL MEETING 2014 6 November 2014 Sydney