Boral — Shareholder Meeting (October 2007)
24 slides from Boral's shareholder meeting presentation, Oct 29, 2007
Slide 1: Boral Limited Annual General Meeting 2007 – Chairman's Address
Boral Limited Annual General Meeting 2007 Chairman’s Address Ken Moss Boral Annual General Meeting 2007 1
Slide 2: 2007 result impacted by declines in US & Australian housing-related earnings
2007 result impacted by declines in US & Australian building products housing related earnings Sales 3% to $4.9bn Net profit 18% to $298m Return on equity from 13.2% to 10.0% Return on funds employed from 14.2% to 11.9% Operating cash flow from $449m to $482m Gearing (debt / equity) from 57% to 50%
Slide 3: NSW dwellings weak; US housing market rapid decline
NSW dwellings remained particularly weak Percentage change in dwellings approvals and non-dwellings value of work approved – FY2007 vs FY2006 Detached Multi-dwellings Non-dwellings 31% 15% 12% 14% 13% 11% 8% 7% 2% 1% 1% 4% -4% -2% -7% -9% -10% -25% Australia NSW Victoria Queensland WA SA Source: ABS
Slide 4: Continued solid dividend returns with maximum franking benefits
2007 result impacted by declines in US & Australian building products housing related earnings Sales 3% to $4.9bn Net profit 18% to $298m Return on equity from 13.2% to 10.0% Return on funds employed from 14.2% to 11.9% Operating cash flow from $449m to $482m Gearing (debt / equity) from 57% to 50%
Slide 5: Relative share price performance; key sustainability priorities
Relative share price performance index Indexed 450 Boral 400 350 300 250 200 150 ASX100 100 50 0 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Boral Annual General Meeting 2007 Boral’s key sustainability priorities are common to all d
Slide 6: 2007 Sustainability Report: recognised as an industry leader
2007 Sustainability Report Boral Annual General Meeting 2007 Boral is being recognised as an industry leader • Member of the FTSE4Good Index • Carbon Disclosure Project (CDP5) Climate Change Leader • Gold Star performer in the Corporate Responsiblity Index • Storebrand Investment “Best in Class” Bor
Slide 7: Boral's safety performance; The Board & Corporate Governance
Boral’s safety performance has continued to improve Lost time injury frequency rate (LTIFR)1 % Hours lost 9.0 9.0 0.25 0.24 0.17 5.1 0.16 5.0 5.0 0.15 0.15 4.5 4.2 0.11 0.11 3.1 0.09 2.8 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 1. Lost Time Injury Fre
Slide 8: Leadership & People Management – Managing Director's Address
Leadership & People Management Boral Annual General Meeting 2007 Managing Director’s Address Rod Pearse Boral Annual General Meeting 2007 8
Slide 9: Sales & EBITDA remain at high levels
Sales & EBITDA remain at high levels Sales revenue EBITDA A$m A$m 5,000 4,909 900 4,500 800 762 4,000 700 3,500 600 3,000 500 2,500 400 2,000 300 1,500 200 1,000 500 100 0 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY05 result onward has been adjusted for adopt
Slide 10: Building Products Australia / USA
Building Products Australia Boral Annual General Meeting 2007 USA Boral Annual General Meeting 2007 10
Slide 11: Asia growth initiatives well positioned for market recovery
Asia Boral Annual General Meeting 2007 Growth initiatives are well positioned for market recovery and market growth Asia Plasterboard* plants: Vietnam South Korea India China Qld Sunstate Cement* Grinding Capacity Wacol Wetcast USA Paving Brick plants: Plasterboard Plant Union City
Slide 12: Strengthening our construction materials position in the USA
We are strengthening our construction materials position in the USA Boral Fly Ash states BMTI Fly Ash production OR Concrete & Quarry MI (& Fly Ash) states IL OH NV IN MD CO KS MO WV KY VA CA OK TN AZ AR NC MS AL SC Oklahoma Concrete & Quarries TX LA GA • Acquired Schwarz & AMI for US$80m in Aug 200
Slide 13: Outlook FY2008
Outlook FY2008 Australia – September quarter ahead of expectation – Continued strength in non-dwelling & infrastructure activity – Concrete, quarry & cement price increases – Construction materials earnings to increase – Building products earnings broadly flat Asia – Continued market growth and
Slide 14: Financial Reports – Adoption of Remuneration Report
Financial Reports Boral Annual General Meeting 2007 Resolution 1 Adoption of Remuneration Report Boral Annual General Meeting 2007 14
Slide 15: Resolution 1 – Adoption of Remuneration Report
Resolution 1 – Adoption of Remuneration Report Boral’s policies relating to remuneration Boral Annual General Meeting 2007 Resolution 1 – Adoption of Remuneration Report Boral’s policies relating to remuneration Relationship between remuneration policies & the Company’s performance Boral Annua
Slide 16: Resolution 1 – Worked example of options
Resolution 1 – Adoption of Remuneration Report Boral’s policies relating to remuneration Relationship between remuneration policies & the Company’s performance Details of performance condition or hurdle for long term incentives Boral Annual General Meeting 2007 Worked example of options Perfor
Slide 17: Resolution 1 – proxy votes
Resolution 1 – Adoption of Remuneration Report Boral’s policies relating to remuneration Relationship between remuneration policies & the Company’s performance Details of performance condition or hurdle for long term incentives Remuneration details for CEO and key management personnel Boral
Slide 18: Election of Directors
Resolutions 2 to 5 Election of Directors Boral Annual General Meeting 2007 Richard Longes Boral Annual General Meeting 2007 18
Slide 19: Resolution 2 – Re-elect Richard Longes
Resolution 2 – proxy votes Re-elect Richard Longes For 319,468,352 Open 10,786,926 Against 763,706 % to be cast FOR the resolution* 99.1% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2007 Roland Williams, CBE Boral Annual General Meeting 200
Slide 20: Resolution 3 – Re-elect Roland Williams, CBE
Resolution 3 – proxy votes Re-elect Roland Williams, CBE For 319,126,080 Open 10,811,225 Against 1,094,330 % to be cast FOR the resolution* 99.0% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2007 Brian Clark Boral Annual General Meeting 2007
Slide 21: Resolution 4 – Re-elect Brian Clark
Resolution 4 – proxy votes Re-elect Brian Clark For 319,671,583 Open 10,822,701 Against 479,205 % to be cast FOR the resolution* 99.2% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2007 Bob Every Boral Annual General Meeting 2007 21
Slide 22: Special Business
Resolution 5 – proxy votes Re-elect Bob Every For 319,714,603 Open 10,834,009 Against 414,625 % to be cast FOR the resolution* 99.2% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2007 Special Business Boral Annual General Meeting 2007 22
Slide 23: Retirement of Directors
Resolution 6 Retirement of Directors Boral Annual General Meeting 2007 Resolution 6 – retirement of directors Resolution will bring Constitution into line with ASX Listing Rules and require that a Director must not hold office (without re-election) past the longer of the third Annual General Meeti
Slide 24: Amendment to the Constitution – proxy votes
Resolution 6 – proxy votes Amendment to the Constitution – Retirement of Directors For 315,500,656 Open 11,561,809 Against 3,250,191 % to be cast FOR the resolution* 98.3% * On basis open proxies in favour of Chairman of the Meeting are voted FOR Boral Annual General Meeting 2007 Boral Limited Annua