Boral — Investor Presentation (May 2018)
11 slides from Boral's investor presentation, May 29, 2018
Slide 1: Fly Ash Slides for Investors
Fly Ash Slides for Investors As at 29 May 2018 A collection of previously communicated information Sources (available at www.boral.com): • Script for Boral Property & Investor Trading Update Call – 1 May 2018 • Half Year Ended 31 December 2017 Results presentation – 13 February 2018 • New York Inves
Slide 2: Fly Ash is a highly attractive growth business
Fly Ash is a highly attractive growth business Boral is well-positioned to deliver growth in the fly ash business We are targeting to at least keep pace with cement-based demand growth and to grow fly ash substitution over time, while continuing to deliver price gains and synergies Demand is growi
Slide 3: Fly Ash Demand is growing
Fly Ash Demand is growing Cement demand a proxy for fly ash demand plus opportunities to increase substitution Attractive demand growth opportunities • Potential to expand substitution rates in concrete, currently ~16% (~50% in European markets1) • Cement growth forecast2 at ~5% CAGR FY2017 – 21 • R
Slide 4: Pricing is growing
Fly Ash Pricing is growing The nexus between fly ash and cement pricing has been broken Demonstrated strong price gains presents attractive opportunity to invest in increased supply options to grow business 2.9 160% • Primary Fly Ash pricing (~US$25 - $75/ton)1 2.7 CEMENT AND FLY ASH PRICING3 140% t
Slide 5: Fly Ash Supply is positioned to grow
Fly Ash Supply is positioned to grow Attractive growth opportunities being pursued for the near, medium and longer term Positioned to keep pace with cement demand growth nearer term, then increase substitution • Fly ash supply dependent on coal-sourced electricity generation; coal expected to remain
Slide 6: Fly Ash margins are strong; targeting further gains
Fly Ash margins are strong; targeting further gains With underlying fundamentals, margins are strong and synergies should grow margins • North America Construction Materials1 EBITDA margins of 21.1% in 1HFY2018, slightly down on 21.6% prior year proforma margins North America Construction Materials
Slide 7: FY2018 impacted by weather and Texas realignment
FY2018 impacted by weather and Texas realignment Key fly ash comments made on 1 May 2018 conference call regarding Boral Property & Trading Update ASX release on 24 April 2018. Script available on website. • No concerns with the fundamentals of the North American business....We remain highly confide
Slide 8: We are targeting US$24m of synergies in Fly Ash
We are targeting US$24m of synergies in Fly Ash Our 4 year synergy targets remain achievable Fly Ash Synergy targets Business / synergy drivers Year 1 run rate Within 4 years US$ pa US$ pa Fly Ash Sub-total ~$12m >$24m Ash supply / network optimisation / logistics Procurement Sales coverage ex
Slide 9: Additional slides
Additional slides
Slide 10: Boral North America: strong footprint
Boral North America: strong footprint Construction Materials and Building Products Ontario Quebec NORTH- 1 1 1 1 3 EAST Meridian Brick 1 6 SHARE OF REVENUE, % 1 1 1 Fly Ash Windows 6 2 1 10 1 MIDWEST 3 1 1 2 1 8 28 9 by business1 3 2 6 1 2 3 1 2 1 9 13 1 2 5 1 2 Light 4 Building 5 7 1 9 6 Block WEST
Slide 11: Boral North America: A strong footprint in Fly Ash
Boral North America: A strong footprint in Fly Ash With exposures to diverse and growing market segments • Leading fly ash marketer NORTH- • 146 operational sites EAST 1 6 • Only fly ash marketer operating nationally 1 1 FLY ASH SHARE OF REVENUE, % across the US – ash sales in 48 states 6 1 MIDWEST