Boral — JPMorgan Building Forum 2014
9 slides from Boral's conference presentation, Apr 10, 2014
Slide 1: Progressing Boral's Fix, Execute, Transform Program
Progressing Boral’s Fix, Execute, Transform Program Mike Kane, CEO & Managing Director, Boral Limited JPMorgan Building Forum, 10 April 2014 Insert new picture Different people shot similar to 2013 AR Boral’s Fix, Execute, Transform program Our goal is to transform Boral into a global building and c
Slide 2: Focus is on improving ROFE to 15%
Focus is on improving ROFE to 15% EBIT to average funds employed (ROFE1) % 19.3 17 15.1 12.1 10.1 7.4 6.3 6.2 5.9 4.7 4.7 4.2 2 2 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 1H FY13 1H FY14 1. Excludes significant items 3 2. 1H FY2013 and 1H FY2014 on a moving annual total (MAT) basis Solid pr
Slide 3: Solid progress made in delivering immediate FIX priorities
Solid progress made in delivering immediate FIX priorities FIX PRO OBJECTIVES PROGRESS • In FY2014 reduce costs by: Realised $60m in cost reductions from cost – $105m through prior period headcount down programs in 1H FY2014 Manage reductions & rationalisation initiatives costs down Expect to de
Slide 4: Execute: Improving the way we operate to help respond to external challenges
Execute: Improving the way we operate… to help respond to external challenges EXECUTE External challenges Australia • Low economies of scale • High costs – labour, energy, transport • Immature energy markets • High land costs & housing affordability leading to trend away from detached housing • Leve
Slide 5: Case Studies & Supporting Slides: Business overview
Case Studies & Supporting Slides 9 Business overview 1H FY20144 Revenue • Boral is an international building by division and construction materials group USA 12% with operations in Australia, the Construction USA and Asia Gypsum 19% Materials & Cement 60% • A$4.5b market cap1 Building Products 9% •
Slide 6: Boral's divisional structure
Boral’s divisional structure Boral Gypsum1 Boral USA Asia, Australasia Cladding (Bricks, Cultured Stone, Trim), and Middle East Roof Tiles, Fly Ash, Construction Materials (Colorado) Boral Construction Materials & Cement (Aus) Boral Building Quarries, Concrete, Asphalt, Products (Aus) Cement, Concre
Slide 7: Fix & Transform: Cost factors led Boral to cease clinker manufacturing in Vic
Fix & Transform: A combination of cost factors led Boral to cease clinker manufacturing in Vic Cementitious Production Volume by Source1 • Manufacturing of clinker Waurn (million tonnes per year) Ponds, Victoria ceased in April 2013 12 • Decision driven by high A$, low shipping costs from Asia, high
Slide 8: Boral USG JV provides an enhanced platform to leverage growth across Asia
Boral USG JV provides an enhanced platform to leverage growth across Asia • Asia expected to become world’s largest JV plasterboard market share 20131 plasterboard market by 20151 Revenue contribution from largest to smallest • Size of plasterboard market in JV region is >2,250m m2 58% 55% − Asia ma
Slide 9: East Coast Bricks JV aims to create a sustainable competitive bricks business
East Coast Bricks JV aims to create a sustainable competitive bricks business East Coast Combined Benefits Combined Bricks JV business assets • ~$230m annualised • Cost synergies revenue – Initial overhead savings • Owned 60% by CSR, • 12 manufacturing of $7 - $10m p.a. 40% by Boral operations (incl