Boral Ltd.

Boral — Investor Presentation (May 2012)

28 slides from Boral's investor presentation, May 10, 2012

  1. Slide 1: Boral Gypsum Asia

    ® BORAL GYPSUM ASIA Analyst and Investor Site Tour, May 2012 Frederic de Rougemont, Chief Executive Boral Gypsum Asia 10 May 2012

  2. Slide 2: Agenda

    Boral Gypsum Asia AGENDA  BGA introduction  Performance and Growth  Our ambition 2

  3. Slide 3: History of BGA

    Boral Gypsum Asia HISTORY OF BGA 2000 Joint venture formed in June 2000 (Boral initial share 27.3%) 2001 Siam Gypsum Industries acquired (71%) from Siam Cement in Thailand (Boral funded, lifting Boral’s share in LBGA to 47%) 2002 Dangjin line 1 (Korea) and Chongqing line 1 (China) opened 2003 Boral

  4. Slide 4: BGA Financials

    Boral Gypsum Asia BGA FINANCIALS Year end Year end 12 mths to Year end Revenue (USD million) USD million Dec 09 Dec 10 June 11 Dec 11 CAGR 11.1% Revenue 401 481 520 565 565 481 441 402 401 EBITDA 73 83 85 91 335 289 299 271 225 197 EBITDA Margin (%) 18.2% 17.3% 16.3% 16.1% EBIT 50 56 57 62 Dec YE 20

  5. Slide 5: Organisational Structure

    Boral Gypsum Asia ORGANISATIONAL STRUCTURE Frederic de Rougemont Chief Executive BGA Frederic Billon Ivan Kovarik Gavin Burton Kil-Joo Lee Robert Aaron Gregory Lukasik Peter Edwards Korea Mgr Thailand Mgr China Manager Indonesia Mgr Malaysia/ India Mgr Vietnam Mgr Singapore Mgr  Five functional dep

  6. Slide 6: Plasterboard lining systems have unique benefits which have helped drive adoption

    Boral Gypsum Asia PLASTERBOARD LINING SYSTEMS HAVE UNIQUE BENEFITS WHICH HAVE HELPED DRIVE ADOPTION Lightweight  Reduced building mass – reduced foundation costs  Lower thermal mass Environment Flexibility and Performance  Low embodied and lifecycle  Ease of reconfiguration energy and repair Inc

  7. Slide 7: BGA has the full product range for interior lining solutions

    Boral Gypsum Asia BGA HAS THE FULL PRODUCT RANGE FOR INTERIOR LINING SOLUTIONS + + + Plasterboard Metal stud and screw Insulation material Compound System “The System is composed of associated components delivering specific end use performance” Industrials 7 Residential Hospitals Hotels Industrials

  8. Slide 8: Agenda

    Boral Gypsum Asia AGENDA  BGA introduction  Performance and Growth  Our ambition 8

  9. Slide 9: Growth is driven by organic growth and penetration

    Boral Gypsum Asia GROWTH IS DRIVEN BY ORGANIC GROWTH AND PENETRATION GDP % Growth by Region  Strong economic growth forecast 16 across most 14 important markets 12  Increase public investment drives 10 growth in non- 8 residential 6 construction 4  Increasing urbanisation will 2 drive growth in 0

  10. Slide 10: Plasterboard Demand per capita

    Boral Gypsum Asia GROWTH IS DRIVEN BY ORGANIC GROWTH AND PENETRATION Plasterboard Demand/GDP per Capita  Historically 10 plasterboard use Canada UK Australia starts in commercial France US South Korea Japan then moves to Germany Spain housing Plasterboard Demand per capita (m2 per person – log scal

  11. Slide 11: Penetration starts with commercial buildings and develops later in residential buildings

    Boral Gypsum Asia PENETRATION STARTS WITH COMMERCIAL BUILDINGS AND DEVELOPS LATER IN RESIDENTIAL BUILDINGS Asia Plasterboard Penetration  Step 1: ceilings in commercial buildings  Step 2: partitions in commercial buildings, ceiling in residential buildings  Step 3: partition in residential buildi

  12. Slide 12: Our growth success is based on a powerful penetration model in Asia

    Boral Gypsum Asia OUR GROWTH SUCCESS IS BASED ON A POWERFUL PENETRATION MODEL IN ASIA  Plasterboard solutions provide characteristics meeting immediate needs and future construction trends  There is a consistent penetration model across all countries in Asia, most of them being still in the “infan

  13. Slide 13: Ceiling and walls in commercial buildings

    Boral Gypsum Asia CEILING AND WALLS IN COMMERCIAL BUILDINGS Hotel and Casino in Macau (City of Dreams) Hard Rock Hotel - Room To Room Partition Various Tall Partitions With High Fire, Acoustic and Mechanical Performances 13

  14. Slide 14: First steps of wall applications in residential

    Boral Gypsum Asia FIRST STEPS OF WALL APPLICATIONS IN RESIDENTIAL Residential High Rise in India  Boral developing new market opportunities for Boral plasterboard systems – first high-rise project in India to use the complete plasterboard solution 320,000m² of Boral Wall Lining Systems 14

  15. Slide 15: BGA Route to Market

    Boral Gypsum Asia BGA ROUTE TO MARKET End Use Residential Residential Commercial E.g. Hotels, Hospitals, Repairs, Maintenance, - Low Rise - High Rise Leisure, Non-Residential High Rise Upgrades Builders/Developers Small Installers Installers (Repairs + Small/Medium projects) Large Installers Sub Dis

  16. Slide 16: Vietnam example of route to market

    Boral Gypsum Asia VIETNAM EXAMPLE OF ROUTE TO MARKET CAN SET BUDGET / INSTALLER / MAIN CON CHOOSE SOLUTION / CHOOSE INFLUENCE INFLUENCE RELATIONSHIPS / BREAK BULK SYSTEM BRAND BRAND CHOICE SOLUTION Large / Technical Architect / Big Installer / Specified Projects 15% Designer / Sub-Con Main Consultan

  17. Slide 17: China will become the biggest plasterboard market on earth by 2015

    Boral Gypsum Asia CHINA WILL BECOME THE BIGGEST PLASTERBOARD MARKET ON EARTH BY 2015 2011 Market size in BGA region-except China 2011 Market size in BGA region (million m²) (million m²) Total Total 490 1,970 Key themes in chosen markets  Korea – mature with a strong potential in residential  Thail

  18. Slide 18: The current BGA infrastructure (network)

    Boral Gypsum Asia THE CURRENT BGA INFRASTRUCTURE (NETWORK) Plasterboard 20061 2007 2008 2009 2010 2011 CY 2011 Revenue Board sales 196 219 235 230 265 296 (million m2) Board plant capacity 289 289 337 337 413 448 (million m2) Sales Operations Plants3 Quarries Total Offices Korea 3 5 - 8 Thailand 5 1

  19. Slide 19: BGA has the most extensive network in Asia

    Boral Gypsum Asia BGA HAS THE MOST EXTENSIVE NETWORK IN ASIA BGA Operations (Capacity¹, Estimated Market Share %) Korea 153M m², 44% China 140M m², 6% Thailand UAE 105M m², 54% 37% Vietnam India 12M m², 49% 8M m², 32% Export countries with sales Philippines offices 64% Industrial sites Indonesia Mal

  20. Slide 20: BGA locations and market positions

    Boral Gypsum Asia BGA LOCATIONS AND MARKET POSITIONS Gypsum Type Energy Source Capacity Country Name (M m2 pa) BGA 2011 Estimated Market Shares Korea Yosu Synthetic H.Oil/Steam 35 Korea Ulsan Synthetic Gas 46 Korea Dangjin 1 Synthetic Gas 37 Korea Dangjin 2 Synthetic Gas 35 Total - Korea 153 Thailan

  21. Slide 21: Cost structure of plasterboard

    Boral Gypsum Asia COST STRUCTURE OF PLASTERBOARD Typical Unit Production Cost Breakdown Index 21

  22. Slide 22: Among global players, BGA has the leading market position throughout Asia

    Boral Gypsum Asia AMONG GLOBAL PLAYERS, BGA HAS THE LEADING MARKET POSITION THROUGHOUT ASIA TOTAL BGA Saint KNAUF Gobain Presence 10 6 4 (countries)1 Capacity (M m²) 463 221 129 (with current projects (499) (251) (139) under implementation) KK Estimated Market 15 6 4 LL Share (%) LL LL (including Ch

  23. Slide 23: Synergies with Boral Plasterboard Australia

    Boral Gypsum Asia SYNERGIES WITH BORAL PLASTERBOARD AUSTRALIA  Boral production system (LEAN) provides Asia Pacific plasterboard benefits  Sales and Marketing Excellence and commercial leverage Best Practices provides competitive advantage  Asia Pacific innovation and research platform being esta

  24. Slide 24: Agenda

    Boral Gypsum Asia AGENDA  BGA introduction  Performance and Growth  Our ambition 24

  25. Slide 25: Our ambition

    Boral Gypsum Asia OUR AMBITION Fully leverage our existing infrastructure, strengthen our leadership with products and solutions, and accelerate the penetration of plasterboard Levers of our ambition  Further develop operational excellence with LEAN  Maintain country leadership by sustaining capac

  26. Slide 26: The future

    Boral Gypsum Asia THE FUTURE  BGA continues to grow through its leadership position and excellent installed physical assets  Regional growth and increased penetration provides a solid base for future growth - Investing in core markets ahead of competitors is crucial - Innovation accelerates penetr

  27. Slide 27: World class capacity

    Boral Gypsum Asia WORLD CLASS CAPACITY Leading Products to High Growth Markets Enhanced capabilities to improve performance Boral Building Products Asia Expanded geographic presence to drive revenues 27

  28. Slide 28: Building something great

    Building something great™ 28

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