Boral — US Investor Conference, New York 2017
22 slides from Boral's conference presentation, Nov 15, 2017
Slide 1: US Investor Conference Presentation
US Investor Conference Presentation Mike Kane, CEO & Managing Director New York 15 November 2017 Boral North America Innovation Factory – San Antonio
Slide 2: Boral Group: snapshot
Boral Group: snapshot1 An Australian based, ASX listed international building & construction materials group External revenue, % A$3.3b revenue Concrete 2 Australia 4 Quarries • Leading, integrated construction materials position 3 6 Boral Asphalt 9 42 Cement • Diversified end market exposure Concre
Slide 3: Boral Australia
AUSTRALIA ss — ~| a
Slide 4: Leading construction materials footprint
Leading construction materials footprint Diversified geographic and end-market exposure Geographic1, % 7 NT 2 1 20 NSW / ACT 24 1 45 VIC / TAS/ SA 9 QLD 62 1 1 QLD WA 12 16 1 WA 2 24 SA 10 21 4 1 NSW/ End-market1, % 11 1 93 2 2 ACT OPERATING FOOTPRINT 13 9 3 (total number of operating sites3) 13 RHS
Slide 5: Vertically integrated positions in key markets, especially on East Coast
Vertically integrated positions in key markets, especially on East Coast • ~70% manufactured Quarries • 78 quarries Bitumen Cement clinker, ~30% imported Aggregates & sand BIA JV • >30m tonnes p.a. • 1.5m tonne p.a. clinker • Close to 1 billion kiln capacity tonnes reserves • 3m tonne p.a. cement •
Slide 6: Boral Australia: major project and infrastructure
Boral Australia: major project and infrastructure Well positioned to benefit from pipeline of project activity in RHS&B1 & non-residential segments Australian major road & building construction projects3,4 Value of work done (A$b) Boral Australia external Forecast revenue by sector2, % 10 Castle Tow
Slide 7: Boral North America
BORAL NORTH AMERICA
Slide 8: Headwaters acquisition expanded Boral's footprint & diversified our exposures
Headwaters acquisition expanded Boral’s footprint & diversified our exposures FY2017 Proforma revenue1 Ontario Quebec North- 1 1 1 3 1 east Geographic2, % 1 6 5 1 1 1 1 9 Southeast 24 1 Midwest 6 2 1 Southwest 3 1 1 1 2 14 West 9 3 2 1 2 6 1 2 3 1 Midwest 9 1 2 5 1 2 4 27 Northeast 21 5 West 7 8 1 9
Slide 9: Headwaters complements our product portfolio
Headwaters complements our product portfolio Product maturity lifecycle of Boral North America’s portfolio Early / Adoption Phase Mature Phase Development Phase Clay & Concrete Stone Roof Tile Brick & Block PVC Shutters Stone Coated Market Conversion Metal Roofing PVC Trim Specialty Vinyl Siding Com
Slide 10: Leading national Fly Ash business
Leading national Fly Ash business Providing demand and supply growth opportunities DEMAND: outlook strong PRICING: gap to cement represents opportunity • Potential to expand substitution rates in concrete, • Ready mix producers motivated to increase fly ash as currently ~16% (~50% in European market
Slide 11: USG Boral
USG BORAL
Slide 12: 50%-owned joint venture with leading market shares in high growth countries
50%-owned joint venture with leading market shares in high growth countries USG Boral’s plasterboard market share1, % 60 – 65 China 4 3 South Korea 50 – 55 50 – 55 8 45 – 50 2 40 – 45 40 – 45 1 35 – 40 2 India 3 1 Vietnam 1 1 3 1 1 Middle East3 2 20 – 25 Thailand 1 2 10 – 15 3 Malaysia 2 4–6 Indones
Slide 13: Growth underpinned by product penetration opportunities
Growth underpinned by product penetration opportunities Early Stage Growth Developed Matured Market growth led by residential Market led by wall penetration ceiling and commercial projects GDP: GDP: GDP: ~3,000 US$/capita ~10,000 US$/capita ~30,000 US$/capita PB1 consumption: PB1 consumption: PB1 co
Slide 14: EBITDA growth achieved across each division
EBITDA growth achieved across each division 1 EBITDA & EBITDA margin1 Boral Group Boral Australia2 USG Boral2,3 Boral North America2 1000 A$m 17.2 % 18.0% 16.4 19.2 15.9 15.9 16.7 % 18.0% 15.0 20.0% 900 965 16.0% A$m 700 300 A$m 18.0 % US$m 320 % 16.0% 800 13.7 14.0% 15.0 16.0% 15.9 18.0% 11.3 270 6
Slide 15: Boral today: Performance, transformation & growth
Boral today: Performance, transformation & growth 1. Maintaining and strengthening our leading position in Australia • Well positioned on the east coast where conditions are strong • Quarry reinvestment leverages our integrated position and ability to deliver major projects • Operational and commerc
Slide 16: Supplementary slides
Supplementary slides
Slide 17: Boral North America: A US$1.9b revenue business
Boral North America: A US$1.9b1 revenue business Strong strategic fit between Headwaters and Boral’s existing US businesses FY2017 external revenue Proforma (US$m)1 Legacy Boral USA ~$490m Legacy Headwaters ~$300m ~$310m ~$260m ~$250m ~$250m Energy Technologies Denver Construction Materials Windows
Slide 18: On track to deliver substantial synergies
On track to deliver substantial synergies From complementary businesses and SG&A overhead savings Targeted synergies1 Synergy sources and implementation costs SYNERGIES REVENUE ~US$100m per annum within four years • Leverage existing relationships Cross-Selling & across sales channels for greater Di
Slide 19: Safety performance
Safety performance Company-wide commitment to Zero Harm Today Employee and Contractor RIFR1 • Continuing to reduce injuries in FY2017 (per million hours worked) LTIFR with 8% improvement in RIFR1 down to 19.0 8.1 from 8.8 MTIFR 17.4 RIFR - LTIFR increased slightly to 1.5 from 1.3 13.6 - MTIFR reduce
Slide 20: GHG emissions totalled 2.5m tonnes in FY17
GHG emissions totalled 2.5m tonnes in FY17 Boral’s emissions and emissions intensity have reduced by ~30% since FY12 GHG emissions from operations1 and emissions intensity per A$m of revenue2 (million tonnes of CO2-e) Asia USA Australia FY2017 GHG emissions: 2.5 million tonnes CO2-e GHG intensity (t
Slide 21: Balance sheet
Balance sheet Maintaining a robust financial position Gearing (net debt / net debt + equity), % • Net debt of $2,333m at 30 June 2017 from net debt of $893m at 30 June 2016 due to Headwaters acquisition 31 30 30 • Weighted average debt facility maturity of ~5.5 years1 18 19 20 Debt maturity profile
Slide 22: Outlook summary for FY2018
Outlook summary for FY2018 (as presented at Boral’s AGM, 2 Nov-17) Earnings growth across all divisions, with significant lift in Boral North America as we deliver on Headwaters acquisition objectives • Growth in infrastructure and pricing outcomes on East Coast to more than offset pressures in WA,