Boral — Shareholder Meeting (2000)
13 slides from Boral's shareholder meeting presentation, 2000
Slide 1: The rationale for the demerger of Boral and Origin Energy remains sound
The rationale for the demerger of Boral and Origin Energy remains sound • Investment choice for shareholders • Leading to creation of shareholder value in both companies, through: – Focus on core competencies – Independent strategy and financial policy – Organisational restructure • Market re-rating
Slide 2: The demerger scorecard: market re-rating has commenced
The demerger scorecard: market re-rating has commenced $2.80 Average weekly share price $2.60 $2.40 $2.20 Old Boral New Boral $2.00 $1.80 $1.60 Old Boral Nominal Origin $1.40 $1.20 25 Feb-00 $1.00 9 0 0 99 00 00 00 0 0 0 00 9 00 00 -9 -0 -0 r-0 l-0 -0 -9 v- b- g- v- p- n- n- ct ct ar ay ec Ju Ap No
Slide 3: A year of achievement
A year of achievement • Demerger from energy completed • New Board, senior management team • Major softwoods and Asian plasterboard JVs • Divested 8 businesses in 15 transactions • $455m operating cash flow • Net debt reduced by $469 million • Significantly improved financial performance Boral’s pro
Slide 4: Boral's balance sheet strengthened
Boral’s balance sheet strengthened NET DEBT ($m) GEARING (%) EBIT / INTEREST DOWN DOWN COVER (%) UP 1430 83 4.1 3.1 961 54 98/99 99/00 98/99 99/00 98/99 99/00 NOTE: Based on proforma accounts Returns have improved EBIT TO FUNDS RETURN ON EMPLOYED (%) UP EQUITY (%) UP 13.6 10.2 11.6 9.2 98/99 99/00 9
Slide 5: Boral has a great legacy on which to build its future
Boral has a great legacy on which to build its future • Large, strategically placed reserves • Competitive assets • Experienced, committed people • Strong relationships with customers • Leading market positions in most markets Boral has leading market positions ASIA USA Indonesia concrete #1 Bricks
Slide 6: Boral is well placed to achieve its purpose
Boral is well placed to achieve its purpose To be a focused, value-driven building and construction materials supplier operating in Australia and increasingly offshore New Boral’s imperatives “perform & grow” Operational Improved Improvement Ongoing 2-3% cost reductions operating Step change cost im
Slide 7: Building Products earnings up 72%
Building Products earnings up 72% Construction Materials earnings down 14% 7
Slide 8: Additional earnings through Greystanes development
Additional earnings through Greystanes development Employment generating land Prospect Reservoir Residential development Boral USA earnings up 9% 8
Slide 9: Boral & Lafarge joined forces across Asia
Boral & Lafarge joined forces across Asia X Boral Rep Offices Lafarge Lafarge Korea Korea Shanghai Lafarge Lafarge Shanghai Shanghai Boral Shanghai X Dubai X Manila Manila Bangkok Bangkok Ho Ho Chi Chi Minh Minh Kuala Kuala Lafarge Lafarge Prestia Prestia Lumpur Lumpur Plasters Plasters Plant Plant
Slide 10: Safety: long-term improving trend
Safety: long-term improving trend LTIFR* HOURS LOST % 0.45 20 16 0.34 0.34 15 0.27 0.23 10 0.21 8 0.18 7 5 FY95 96 97 98 99 00 01 FY95 96 97 98 99 00 01 Q1 Q1 * LTIFR is the frequency rate of lost time injuries per million hours worked Sustainable development fundamental to Boral 10
Slide 11: Sustainable development fundamental to Boral
Sustainable development fundamental to Boral PENRITH LAKES DEVELOPMENT Olympic Nepean River rowing course Australian housing downturn well advanced Total dwelling units approved, Australia (monthly, seasonally adjusted) 19000 Total Dwelling Units 17000 15000 13000 11000 9000 7000 5000 FY84 85 86 87
Slide 12: We are focused on the next two years
We are focused on the next two years Australian building & construction value of work done and USA* housing & commercial construction activity 55 190 Australia (VWD A$97/98 billion) USA (spending US$92 billion) 50 170 150 45 USA 130 40 110 35 90 30 70 Australia Forecast period 25 50 90 91 92 93 94 9
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