Boral — Investor Presentation (December 2003)
7 slides from Boral's investor presentation, December 2003
Slide 1: US Tile History
December 2003 US Tile History • Original plant built in 1944 – manufactured floor tile • Converted to clay rooftile in 1973 • Boral purchased operation in 1989 • Today, the largest clay roof tile company in the USA 1
Slide 2: US Tile products and US clay rooftile markets
US Tile products Flat Tile Different Colors Light Weight “S” Tile US clay rooftile markets East Coast Tile Region West Coast Tile Region Shipments (Squares) > 250,000 25,000 to 100,000 10,000 to 25,000 5,000 to 10,000 2,000 to 5,000 0 to 2000 2
Slide 3: Industry dynamics
Industry dynamics Two distinct markets • West Coast, supplied by local producers – Key issues Regulatory standards (ICBO, ASTM) Environmental Very high startup costs • East Coast, clay market dominated by Latin American imports US Tile market has three major market segments 3 Major market segm
Slide 4: US Tile market overview
US Tile market overview Residential / light commercial new construction • Traditional market for clay has grown in the last several years • Long term potential looks good, however some market share pressure in Southern California from lower priced concrete tile Residential lightweight tile re-roof •
Slide 5: Production process overview
Production process overview Grinding & mixing Extruding & of materials shaping Firing & Kiln Drying Unloading & Warehousing & packaging shipping Production initiatives To be the low cost leader in clay roof tile • Continue to gain production efficiencies from the plant improvement project which upgr
Slide 6: Plant improvement project
Plant improvement project Why improve the plant? • Labor intensive • High loss/reject rates • Inefficient use of energy • High plant maintenance costs Challenge was to Maintain and Improve • Perceived high quality product • Products positioned well in market Plant improvement project After plant imp
Slide 7: Looking forward
Looking forward • Continue to increase production efficiency • Maintain market leadership through product development, pricing, and focused customer service • Grow through product imports and possible bolt-on acquisitions Plant tour safety information Safety rules • Wear protective gear • Stay with