Boral — Shareholder Meeting (October 2002)
33 slides from Boral's shareholder meeting presentation, Oct 25, 2002
Slide 1: Annual General Meeting 25 October 2002, Sydney
Annual General Meeting 25 October 2002, Sydney Building on our strong resource and market positions
Slide 2: Chairman's Address
Chairman’s Address Dr Ken Moss Boral 2002 AGM // Building on our strong resource and market positions
Slide 3: Boral's Strategic Intent
Boral’s Strategic Intent “Boral intends to be a value- driven, focused building and construction materials supplier operating in Australia and increasingly offshore” Boral 2002 AGM // Building on our strong resource and market positions
Slide 4: Financial Performance
Financial Performance • Underlying profit up 51% to $192m • Sales revenue up 6% to $3.5 billion • ROFE up 32% to 12.1% • Operating cash flow up 64% to $392m • Debt / Equity down from 53% to 45% Boral 2002 AGM // Building on our strong resource and market positions
Slide 5: Share price performance versus ASX100 Index
Share price performance • Share price up 80% since demerger# • Earnings per share of 34 cents up from 27 cents • Dividend yield of 5.4% for FY2002 (19.0 cents, 75% franking) $5.00 Boral versus ASX100 Index Boral’s Share Price $4.00 $3.00 $2.00 ASX100 Index $1.00 0 1 2 0 1 2 0 1 0 1 2 1 2 00 01 02 -0
Slide 6: Top quartile TSR
Top quartile TSR Total Shareholder Returns (TSR) of ASX100 Reference Group March 2000 – September 2002 1st 2nd 3rd 4th Quartile Quartile Quartile Quartile Boral TSR = 33% Opening Price (1st Mar 00): $2.32; Closing Price (30th Sep 02): $4.18 Calculation: End Price x (1+Div Reinv) / Start Price ^ Year
Slide 7: Building on our strong resource and market positions
Building on our strong resource and market positions
Slide 8: Managing Director's Comments
Managing Director’s Comments Mr Rod Pearse Boral 2002 AGM // Building on our strong resource and market positions
Slide 9: Boral's Financial Objectives
Boral’s Financial Objectives 1. Exceed the weighted average cost of capital (WACC) on a sustainable basis through the building cycle 2. Beat the competition in comparable markets 3. Deliver superior total shareholder returns (TSR) Boral 2002 AGM // Building on our strong resource and market position
Slide 10: Australian cycle is recovering
Australian cycle is recovering AUSTRALIA – TOTAL BUILDING & CONSTRUCTION ACTIVITY $50 $97/98 billion seasonally adjusted Roads, H'ways, $40 Subs & Bridges $30 Value of Work done Non-Dwelling $20 Dwelling $10 $0 1988 1989 1991 1992 1993 1995 1996 1997 2000 2001 1990 1994 1998 1999 2002 Forecast 2007
Slide 11: US markets are holding up
US markets are holding up US RESIDENTIAL & NON-RESIDENTIAL SPENDING IN BORAL “BRICK STATES”* $200 Dodge Q1 2002 Forecast Value of Work Commenced $160 $120 Actual (US$ Billion 1992) $80 $40 $0 Forecast 2000 2001 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2003 2004 2005 2006 2002 Source: FW Dod
Slide 12: Operations
Operations • Cyclical recovery in Australian housing; resilience in USA; continued growth in Asia • Australian EBIT up 27% to $228m • Asian EBIT of $20m up on $4m last year • US EBIT up 10% to A$110m • Group EBIT up 31% to $343m • EBIT/Sales margins up from 8.0% to 9.8% Boral 2002 AGM // Building on
Slide 13: Margins are improving
Margins are improving EBITDA/Sales EBIT/Sales 16% 10% 14% 8% 12% 10% 6% 8% 6% 4% 4% 2% 2% 0% 0% FY1999 FY2000 FY2001 FY2002 FY2001 FY1997 FY1998 FY1997 FY1998 FY1999 FY2000 FY2002 Results for reported building and construction materials businesses each year Boral 2002 AGM // Building on our strong r
Slide 14: Strong market positions
Strong market positions ASIA Plasterboard* Indonesia #1 Malaysia #1 China (east) #1 USA Korea #1 Bricks #1 Thailand #1 Clay Roof tiles #1 The Philippines #1 Concrete Roof tiles* #1 Indonesia Concrete #1 Fly ash #2 AUSTRALIA Cement #1 Concrete #1 Quarries #1 Asphalt #2 Bricks #1 Roof tiles #2 Masonry
Slide 15: Safety
Safety LOST TIME INJURY FREQUENCY RATE* 20 18 16 14 12 10 8 6 4 2 0 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 *Per million hours worked Boral 2002 AGM // Building on our strong resource and market positions
Slide 16: Outlook for FY2003
Outlook for FY2003 • Sep-02 quarter well above Sep-01 quarter • Strong Australian dwelling demand in Dec-02 half-year; should soften in Jun-03 half-year • Australian non-residential demand should build in FY2003 • Results from offshore operations remain strong – FY2003 comparable to FY2002 • Overall
Slide 17: Building on our strong resource and market positions
Building on our strong resource and market positions
Slide 18: Resolution 1: Financial Reports
Resolution 1: Financial Reports Boral 2002 AGM // Building on our strong resource and market positions
Slide 19: Resolution 1: Financial Reports
Resolution 1: Financial Reports Proxy Votes % to be cast for the resolution* FOR 203,110,800 OPEN 26,430,279 99.6% AGAINST 188,743 * On basis Chairman votes open proxies in his favour FOR Boral 2002 AGM // Building on our strong resource and market positions
Slide 20: Building on our strong resource and market positions
Building on our strong resource and market positions
Slide 21: Resolution 2: Election of Directors
Resolution 2: Election of Directors Boral 2002 AGM // Building on our strong resource and market positions
Slide 22: Resolution 2(a): Election of Mark Rayner
Resolution 2(a): Election of Mark Rayner Boral 2002 AGM // Building on our strong resource and market positions
Slide 23: Resolution 2(a): Election of Mark Rayner
Resolution 2(a): Election of Mark Rayner Proxy Votes % to be cast for the resolution* FOR 198,534,535 OPEN 26,603,969 96.8% AGAINST 6,659,118 * On basis Chairman votes open proxies in his favour FOR Boral 2002 AGM // Building on our strong resource and market positions
Slide 24: Resolution 2(b): Election of Roland Williams
Resolution 2(b): Election of Roland Williams Boral 2002 AGM // Building on our strong resource and market positions
Slide 25: Resolution 2(b): Election of Roland Williams
Resolution 2(b): Election of Roland Williams Proxy Votes % to be cast for the resolution* FOR 204,616,632 OPEN 26,663,377 99.4% AGAINST 492,439 * On basis Chairman votes open proxies in his favour FOR Boral 2002 AGM // Building on our strong resource and market positions
Slide 26: Building on our strong resource and market positions
Building on our strong resource and market positions
Slide 27: Resolution 3: Approval of Rod Pearse's Options
Resolution 3: Approval of Rod Pearse’s Options Boral 2002 AGM // Building on our strong resource and market positions
Slide 28: Options exercise hurdle
Options exercise hurdle If at any time during the exercise % of options which period Boral’s TSR become exercisable Does not reach the 50th percentile 0% of the TSR of the ASX Top 100 Reaches the 50th percentile 50% of the TSR of the ASX Top 100 Reaches the 75th percentile 100% of the TSR of the ASX
Slide 29: Example of Options
Example of Options Assumed Share price TSR* Value of MDs Increase in Market performance after 3 yrs achieved options pre-tax Capitalisation relative to ASX100 $4.10 6% pa Nil to 50th Nil Nil percentile $5.00 13% pa Nil to 50th Nil $518 million percentile $5.50 16% pa 50th percentile $0.49 million $8
Slide 30: Resolution 3: Approval of Rod Pearse's Options
Resolution 3: Approval of Rod Pearse’s Options Proxy Votes % to be cast for the resolution* FOR 159,206,126 OPEN 21,279,946 78.5% AGAINST 48,356,839 * On basis Chairman votes open proxies in his favour FOR Boral 2002 AGM // Building on our strong resource and market positions
Slide 31: Resolution 4: Renewal of Partial Takeover Approval Article
Resolution 4: Renewal of Partial Takeover Approval Article Boral 2002 AGM // Building on our strong resource and market positions
Slide 32: Resolution 4: Renewal of Partial Takeover Approval Article
Resolution 4: Renewal of Partial Takeover Approval Article Proxy Votes % to be cast for the resolution* FOR 201,364,848 OPEN 27,008,784 99.1% AGAINST 1,283,704 * On basis Chairman votes open proxies in his favour FOR Boral 2002 AGM // Building on our strong resource and market positions
Slide 33: Annual General Meeting 25 October 2002, Sydney
Annual General Meeting 25 October 2002, Sydney Building on our strong resource and market positions