Boral — Shareholder Meeting (October 2009)
23 slides from Boral's shareholder meeting presentation, Oct 28, 2009
Slide 1: Introducing the Board
Boral Annual General Meeting 2009 1 Introducing the Board Boral Annual General Meeting 2009 2 1
Slide 2: Chairman's Address: FY2009 financial results
Chairman’s Address Ken Moss Boral Annual General Meeting 2009 3 FY2009 financial results Revenue 6% to $4.9bn EBITDA1 22% to $539m Underlying profit after tax1 47% to $131m Profit after tax 42% to $142m 1. Excluding significant items Boral Annual General Meeting 2009 4 2
Slide 3: Net significant items of $11m during the period
Net significant items of $11m during the period Reconciliation of underlying result to reported result Profit A$m EBIT Interest Tax after tax Underlying results 276 (127) (17) 131 Significant items Disposal of investment 1 38 (11) 27 Impairment of assets* 2 (80) 17 (63) Onerous contract* 3 (27) 10 (
Slide 4: Significant decline in Australia and US EBITDA; Asian earnings up
Significant decline in Australia (EBITDA $84m) and in the US (EBITDA $72m); Asian earnings up EBITDA (A$m) FY2008 FY2009 $84m (13%) $72m (640%) $14m (87%) 657 573 11 16 30 -61 Australia USA Asia Boral Annual General Meeting 2009 7 Comprehensive response to significant market challenges Extensive c
Slide 5: Strong balance sheet; dividend down
Strong balance sheet As at June-09 Dec-08 June-08 A$m Cash flow from operating activities1 419 141 582 Net debt 1,514 2,184 1,515 Net debt / equity 55% 79% 52% EBITDA interest cover2 4.2 x 4.1 x 6.2 x EBIT interest cover2 2.2 x 2.3 x 4.0 x 1. After interest & tax paid, before capex & dividends 2. Ex
Slide 6: Boral's share price has recovered from recent lows
Boral’s share price has recovered from recent lows Boral closing share price $10.00 $9.00 2009 AGM $8.00 $6.22 $7.00 $6.00 $5.00 $4.00 2008 AGM $3.00 $4.63 $2.00 $1.00 $0.00 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Feb-00 Oct-00 Feb-01 Oct-01 Feb-02 Oct-02 Feb-03 Oct-03
Slide 7: Executive remuneration restraint initiatives
Executive remuneration restraint initiatives in response to substantial economic downturn and shareholder concerns Changes Who is affected? Comment Freeze fixed Current CEO No increase in fees/fixed remuneration Management Committee remuneration from Non-executive Directors September 2008 to July 20
Slide 8: Revised long term incentive structure for executives
Revised long term incentive (LTI) structure for executives Old LTI structure Revised LTI structure Performance Total shareholder return Unchanged hurdle (TSR) compared with TSR of companies in the S&P/ASX 100 Testing regularity Continuous testing of TSR TSR between first date of the of LTI hurdle du
Slide 9: CEO designate Mark Selway
CEO designate Mark Selway Boral Annual General Meeting 2009 17 Boral’s Management Committee Boral Annual General Meeting 2009 18 9
Slide 10: The Board & CEO succession
The Board & CEO succession Boral Annual General Meeting 2009 19 Managing Director’s Address Rod Pearse Boral Annual General Meeting 2009 20 10
Slide 11: US housing market experiencing worst downturn since the Great Depression
US housing market experiencing worst downturn since the Great Depression Total US housing starts (million)1 2.02 2.04 1.95 1.73 Underlying housing activity 1.8m 1.64 1.65 1.57 1.55 50 year average 1.5m 1.13 0.65 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 1. Seasonally adjusted annualised monthly s
Slide 12: Sales, EBITDA and PAT have held up well
Sales, EBITDA and PAT have held up well despite Australian and US housing market declines Sales revenue EBITDA1 Profit after tax1 A$m A$m A$m 5,199 4,875 4,909 370 370 823 362 4,767 794 794 762 4,305 4,150 688 4,012 672 298 3,831 283 3,489 3,280 563 247 539 531 451 192 169 153 131 FY00 FY01 FY02 FY0
Slide 13: Boral's Strategic Intent & Objectives
Boral is Australia’s largest building & construction materials supplier, with leading positions in the USA & Asia ASIA Plasterboard JV Korea #2 USA Thailand #1 Bricks #1 China (east) #2 Clay roof tiles #1 China (west) #2 Concrete roof tiles JV #1 Indonesia #1 Flyash #2 Malaysia #1 Concrete & Quarrie
Slide 14: Sustainability outcomes have continued to improve including safety
Boral’s sustainability outcomes have continued to improve including safety performance Lost time injury frequency rate (LTIFR) Boral’s 2009 Sustainability Report (per one million hours worked) www.boral.com.au/sustainability 9.0 9.0 5.1 5.0 5.0 4.5 4.2 3.1 2.8 2.5 1.8 FY99 FY00 FY01 FY02 FY03 FY04 F
Slide 15: Preparing for a carbon emissions trading scheme
Boral has been preparing for a carbon emissions trading scheme and mandatory reporting of emissions Boral’s historic Greenhouse Gas emissions Boral has been undertaking (‘000 tonnes of CO2) projects to reduce energy Down 8% on consumption and greenhouse 3,928 3,944 FY08 and FY07 3,624 gas emission
Slide 16: Trading update and outlook
Trading update and outlook September 2009 quarter Market conditions experienced in second half FY2009 broadly continued No material lift in demand in Boral’s businesses Concrete volumes down 13% year-on-year Positive pricing outcomes across the business; some pressure on cement pricing due t
Slide 17: Financial Reports; Adoption of Remuneration Report
Item 1 Financial Reports Boral Annual General Meeting 2009 33 Item 2 Adoption of Remuneration Report Boral Annual General Meeting 2009 34 17
Slide 18: Resolution: Adoption of Remuneration Report proxy votes
Resolution 2 – proxy votes Adoption of Remuneration Report For 266,044,018 Open 9,485,933 Against 19,384,978 % to be cast FOR the resolution* 93.4% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2009 35 Item 3 Re-election of Director Boral Ann
Slide 19: Re-election of Dr Ken Moss: proxy votes
Dr Ken Moss Boral Annual General Meeting 2009 37 Resolution 3 – proxy votes Re-election of Dr Ken Moss For 279,864,668 Open 9,618,446 Against 6,307,195 % to be cast FOR the resolution* 97.9% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2009
Slide 20: Proportional takeover approval provisions
Item 4 Proportional takeover approval provisions Boral Annual General Meeting 2009 39 Resolution 4 – Proxy votes Proportional takeover approval provisions For 283,719,480 Open 9,781,212 Against 1,701,525 % to be cast FOR the resolution* 99.4% * On basis open proxies in favour of Chairman of the Meet
Slide 21: Award of rights to Mark Selway, CEO designate
Item 5 Award of rights to Mark Selway, CEO designate Boral Annual General Meeting 2009 41 Initial LTI award to Mark Selway, CEO designate Overview of grant of rights Value of grant Equal to 100% of CEO fixed annual remuneration of $1.75 million Award date January 2010 Vesting period Three years from
Slide 22: Long term performance hurdle; Resolution 5 proxy votes
Long term performance hurdle must first be satisfied If at any time of the three test The percentage of rights which will dates referred to, the TSR of the vest is: Company: Does not reach the 50th percentile of 0% the TSRs of the S&P/ASX 100 Reaches the 50th percentile of the 50% TSRs of the S&P/AS
Slide 23: Boral Annual General Meeting 2009
Boral Annual General Meeting 2009 45 23