Boral — FY2011 Earnings Presentation
20 slides from Boral's earnings presentation, Aug 17, 2011
Slide 1: Results for the Full Year Ended 30 June 2011
RESULTS FOR THE FULL YEAR Ended 30 June 2011 Mark Selway, Chief Executive 17 August 2011 Boral Limited – Building something great™ 1
Slide 2: Financial Highlights
Results for the full year ended 30 June 2011 FINANCIAL HIGHLIGHTS Continuing Operations Revenue Net debt $4.7bn up 4% $0.5bn down from $1.2bn EBIT 1 Gearing $275m up 2% 16% down from 45% Profit after tax 1 Reported 1 Earnings Per Share $173m up 20% 24.4c up 10% Cash from operations Full year dividen
Slide 3: Boral Construction Materials - Performance and Key Achievements
Results for the full year ended 30 June 2011 BORAL CONSTRUCTION MATERIALS - Performance and Key Achievements Revenue Var (A$m) FY11 FY10 Var % (A$m) FY11 FY10 % Revenue 2,275 2,119 7 Concrete 1,003 952 5 Revenue Other 6% Concrete EBITDA 294 297 (1) Quarries1 428 400 7 Asphalt 44% 31% EBIT 204 201 1
Slide 4: Boral Building Products - Performance and Key Achievements
Results for the full year ended 30 June 2011 BORAL BUILDING PRODUCTS - Performance and Key Achievements Revenue Var (A$m) FY11 FY10 Var % (A$m) FY11 FY10 % Revenue 1,150 1,206 (5) Plasterboard 395 392 1 Revenue EBITDA 138 158 (12) Plasterboard Clay & Concrete 499 537 (7) 34% EBIT 84 101 (16) Timber
Slide 5: Boral Cement - Performance and Key Achievements
Results for the full year ended 30 June 2011 BORAL CEMENT - Performance and Key Achievements Revenue Var (A$m) FY11 FY10 Var % (A$m) FY11 FY10 % Revenue 540 512 5 Cement 312 284 10 Revenue Cement EBITDA 150 141 7 Asian Construction 57% 228 228 - Materials EBIT 96 88 9 EBIT ROS 17.8% 17.2% Asian Cons
Slide 6: Boral USA - Performance and Key Achievements
Results for the full year ended 30 June 2011 BORAL USA - Performance and Key Achievements Revenue Var (A$m) FY11 FY10 Var % (A$m) FY11 FY10 % Revenue 431 364 19 Cladding1 178 174 2 Revenue Construction Roofing2 Materials & EBITDA (57) (67) 15 Roofing2 89 13 Flyash 21% 38% EBIT (99) (104) 5 Construct
Slide 7: Other Businesses - Performance and Key Achievements
Results for the full year ended 30 June 2011 OTHER BUSINESSES - Performance and Key Achievements Revenue Var (A$m) FY11 FY10 Var % (A$m) FY11 FY10 % Revenue 286 294 (3) Windows 155 158 (2%) Revenue De Martin & EBITDA 11 10 12 De Martin & Gasparini 131 136 (4%) 46% Gasparini EBIT 8 6 21 EBIT ROS 2.7%
Slide 8: Results Summary
Results for the full year ended 30 June 2011 RESULTS SUMMARY Full Year 2011 Full Year 2010 $m Group Discontinued Continuing Group Discontinued Continuing Operations Operations Operations Operations Revenue 4,711 29 4,682 4,599 105 4,494 EBIT 277 3 275 252 (19) 271 Net Interest (64) - (64) (97) - (97
Slide 9: Consolidated Income Statement
Results for the full year ended 30 June 2011 CONSOLIDATED INCOME STATEMENT $m FY11 FY10 Var (%) Revenue 4,682 4,494 4% EBIT 1 275 271 2% EBIT to Sales % 5.9% 6.0% Net Interest (64) (97) (34%) Profit before Tax1 211 174 22% Income Tax Expense1 (40) (28) Non-controlling Interest 2 (1) Profit from Cont
Slide 10: Significant Items
Results for the full year ended 30 June 2011 SIGNIFICANT ITEMS Impact $m Manufacturing Capacity Rationalisation Australia: • Insurance proceeds in excess of asset carrying value on closure of the 20 Qld Plywood business • Permanent closure of Australian manufacturing capacity predominantly (46) in t
Slide 11: Australian Market Activity - Non residential back at GFC trough
Results for the full year ended 30 June 2011 AUSTRALIAN MARKET ACTIVITY - Non residential back at GFC trough, engineering still strong Non-Residential Building Engineering Construction MAT Value of work commenced ($m)1 MAT Value of work done ($m)2 30,000 20,000 Roads, Highways, Subdivisions and Brid
Slide 12: Australian Market Activity - Housing activity down from recent peak
Results for the full year ended 30 June 2011 AUSTRALIAN MARKET ACTIVITY - Housing activity down from recent peak to near average levels Australian dwelling starts (‘000)1 200 Total dwelling starts 180 160 140 120 100 80 Detached housing starts 60 40 Multi dwelling starts 20 0 2001 2002 2003 2004 200
Slide 13: Segment Revenue and EBIT
Results for the full year ended 30 June 2011 SEGMENT REVENUE AND EBIT 1H10 2H10 FY10 1H11 2H11 FY11 FY11 to FY10 External revenue $m $m $m $m $m $m % Var Construction Materials 1,082 1,037 2,119 1,102 1,173 2,275 7% Building Products 608 598 1,206 624 526 1,150 (5%) Cement 261 251 512 271 269 540 5%
Slide 14: US Market Activity
Results for the full year ended 30 June 2011 US MARKET ACTIVITY US Operations 1H10 2H10 FY10 1H11 2H11 FY11 FY11 to US$m US$m US$m US$m US$m US$m FY10 % Var External Revenue 1 160 161 321 202 230 432 35% EBIT (43) (48) (91) (45) (54) (99) (8%) EBIT ROS (26.7%) (30.4%) (28.5%) (22.3%) (23.6%) (23.0%)
Slide 15: Cash Flow and Net Debt Reconciliation
Results for the full year ended 30 June 2011 CASH FLOW AND NET DEBT RECONCILIATION FY11 FY10 FY11 FY10 Cash Flow Net Debt Reconciliation $m $m $m $m EBITDA 522 505 Opening balance (1,183) (1,514) Change in working capital (97) 44 Interest & tax (65) (113) Cash flow 404 281 Equity earnings less divid
Slide 16: Debt Maturity Profile
Results for the full year ended 30 June 2011 DEBT MATURITY PROFILE Gearing: net debt to equity reduced from 45% to 16% Net debt to EBITDA improved from 2.3x to 1.0x $700 million, 4 year refinancing with existing relationship banking syndicate will expire in February 2015 Next debt maturity is
Slide 17: Net Interest and Tax
Results for the full year ended 30 June 2011 NET INTEREST AND TAX $m FY11 FY10 Interest expense (88) (102) Interest income 24 5 Net interest expense (64) (97) Interest cover1 4.4 2.6 Tax expense1 (Continuing Operations) 40 28 Underlying tax rate (Continuing Operations) 18.8% 16.0% Boral Limited – Bu
Slide 18: Current Position
Results for the full year ended 30 June 2011 CURRENT POSITION LEAN SALES & MARKETING RATIONALISATION ACQUISITIONS Operational Excellence Excellence Responding to market Of aligned businesses demand > Boral Production > Boral sales initiative > Clay & Concrete > Portfolio Realignment System Inter-d
Slide 19: Carbon Tax
Results for the full year ended 30 June 2011 CARBON TAX Berrima The Clean Energy FIXED CARBON PRICING IMPACT TO BORAL Legislative Package is SCHEME: expected to be The carbon tax, as introduced into 11 1 July 2012 proposed, has a Parliament for debate in Fixed carbon price theoretical pre-tax cost,
Slide 20: Outlook
Results for the full year ended 30 June 2011 OUTLOOK Current conditions make it difficult to accurately predict the outcome for FY2012. The residential new build market in Australia weakened considerably in the second half of FY2011 and with the exception of Construction Materials and Cement, where