Boral — Corporate Update (June 2009)
15 slides from Boral's corporate update, Jun 26, 2009
Slide 1: Boral Timber Sydney Site Tour
Boral Timber Bryan Tisher Sydney Site Tour 26 June 2009 Boral Timber accounts for ~20% of Boral’s external revenues from Australian building products 1H2009 vs 1H2008 External Revenues Construction Materials, Building Products, Australia Australia USA Asia A$m 700 600 Boral Timber A$141m 500 1H2009
Slide 2: Boral Timber's operating structure consists of five business units
Boral Timber’s operating structure consists of five business units Boral Timber Softwood Hardwood Integrated Softwood Plywood Residues Davis & Herbert Hardwoods Highland Pine North Coast Joint Venture* Green & Dry Mills Employees ~1,000 Hardwood flooring mill 3 Engineered Softwood sawmill 1*
Slide 3: Boral Timber will benefit from government stimulus initiatives
Boral Timber will benefit from a number of Government stimulus initiatives Structural Hardwood Plywood Timing Softwood Flooring First Home Owners Boost 9 FY10-FY11 Social and Defence Housing 9 9 FY10-FY12 Schools Program 9 9 FY10-FY11 Sydney Site Tour 26 June 2009 5 Australian Major Softwood Timber
Slide 4: Australian Hardwood Regional Forestry Agreements; Building a sustainable future
Australian Hardwood Regional Forestry Agreements Regions with completed Regional Forestry Agreements Western Australia West Victoria North East Victoria Central Highlands Victoria Gippsland Victoria East Gippsland Victoria Tasmania Southern Eastern NSW Eden Eastern NSW Boral Hardwoods Engineered Flo
Slide 5: Hardwood is sourced from sustainably managed forests
Hardwood is sourced from sustainably managed forests Aerial Photo – Australian Group Selection (AGS) Regrowth of forest following AGS Harvesting Harvested in 1999 Harvested in 2003 Harvested in 2008 Harvesting laws and guidelines prescribe three key silvicultural practices in NSW: Thinning - the re
Slide 6: Highland Pine Products JV is part of the Oberon Timber Complex
Highland Pine Products JV is part of the Oberon Timber Complex Highland Pine Products Sites 1 & 2 CHH Structaflor Plant CHH Mouldings Line CHH MDF Plant Woodchem Resins Plant Jeldwen Doorskins Factory Sydney Site Tour 26 June 2009 11 Highland Pine Products produces mainly structural softwood product
Slide 7: Highland Pine is a world scale modern sawmill
Highland Pine is a world scale modern sawmill with scanning and recovery optimisation technology Softwood Sawmill Control Room Highland Pine Green Mill Sydney Site Tour 26 June 2009 13 Highland Pine Products is automated to process 725,000m3 of sawlogs p.a. Sydney Site Tour 26 June 2009 14
Slide 8: Boral Plywood produces a broad range of plywood products
Boral Plywood produce a broad range of plywood products Structural Cladding Premier wood Flooring Formply Marine Sydney Site Tour 26 June 2009 15 Hoop resource produces high face grade marine plywood Red Dragon Marine Sydney Site Tour 26 June 2009 16
Slide 9: Plywood's New Modular BridgeWood System
Plywood’s New Modular BridgeWood System is a cost effective way to replace rural hardwood bridges Removal of Kyogle Council’s old hardwood bridge at Iron Pot Creek Replacement with Plywood’s new Modular Bridgewood Product Sydney Site Tour 26 June 2009 17 Typical Hardwood Products Green Decking Struc
Slide 10: Boral Hardwood has the largest range in Australian hardwood flooring
Boral Hardwood has the largest range in Australian Hardwood Timber flooring Sydney Blue Gum Messmate Spotted Gum Blackbutt Australian Beech New England Oak Sydney Site Tour 26 June 2009 19 Engineered Flooring adds value to the hardwood resource Sydney Site Tour 26 June 2009 20
Slide 11: Engineered Flooring retail channels; Residues export facility
Engineered Flooring sells through a new range of retail channels Harvey Norman Carpet Retail Timber Flooring Specialists Sydney Site Tour 26 June 2009 21 Residues export facility at Newcastle Softwood and Hardwood woodchip exports Long term relationships with Japanese paper manufacturers
Slide 12: Timber Business Priorities; safety performance
Boral Timber Business Priorities Safety performance Capacity management and inventory Cost reduction – process improvement Cash management Carbon Pollution Reduction Scheme (CPRS) Sydney Site Tour 26 June 2009 23 Boral Timber’s safety performance compares well to the industry Timber Indust
Slide 13: Capacity planning and cost reduction programs
Capacity planning forms an integral part of inventory management Boral Timber Mill Capacity Planning 1H08 2H08 1H09 2H09 JUL-07 JUN-09 Hardwood Green Mills Herons Creek Koolkhan Walcha Nowra Batemans Bay Narooma Hardwood Dry Mills Herons Creek Maxwells Creek Kyogle Grafton Parquetry Gloucester Murwi
Slide 14: Timber focused on cash management; CPRS benefits
Boral Timber focused on cash management Inventory reduction initiatives Working Capital Management Surplus Assets Fast payback capital expenditure Sydney Site Tour 26 June 2009 27 Timber products will benefit from CPRS if the carbon stored in wood products is counted Paper products after 20
Slide 15: Sydney Site Tour 26 June 2009
Sydney Site Tour 26 June 2009 29