Boral — Shareholder Meeting (November 2016)
26 slides from Boral's shareholder meeting presentation, Nov 3, 2016
Slide 1: Annual General Meeting 2016 – Chairman's Address
ANNUAL GENERAL MEETING 2016 3 November 2016 Sydney 1 CHAIRMAN’S ADDRESS Dr Brian Clark
Slide 2: Boral Australia
Boral Australia Construction Materials & Cement and Building Products Well positioned, integrated downstream operations NT 2 19 1 1 61 CEMENT QUARRIES BITUMEN 1 17 9 3 WA 13 1 QLD 40-50% Quarry 5-15% Quarry volumes sold volumes sold SA internally to internally to ~50-60% Cement Concrete Asphalt ~35%
Slide 3: USG Boral and Boral USA
USG Boral 50%-owned joint venture in Australasia, Asia & Middle East Share of revenue China by country3, % 5 3 South Korea Other 8 2 13 1 Indonesia Australia 2 1 Vietnam 6 1 1 3 India 3 1 36 1 Middle East 2 China 11 Thailand 1 2 3 Malaysia 14 MANUFACTURING FOOTPRINT 2 (total number of operations1) T
Slide 4: FY2016 financial results
Community partnerships Redkite Boral and Habitat for Humanity Australia in Indonesia Conservation Volunteers Australia 7 FY2016 financial results Revenue Gearing, Net D/(Net D+E) Reported Continuing operations $4.3b 2% 20% up from 19% EBIT1 Earnings per share1 $398m 12% 35.8cents 12% Profit after ta
Slide 5: Capital management and Board of Directors
Capital management Net debt, A$ million Earnings and dividends per share1 A$ cents 1,518 1,446 35.8 EPS 893 31.9 817 718 FY2012 FY2013 FY2014 FY2015 FY2016 22.0 22.5 DPS Gearing, % (net debt / net debt + equity) 13.6 13.6 18.0 15.0 31 30 11.0 11.0 18 19 20 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 F
Slide 6: Executive Committee and CEO's Address
Executive Committee Mike Kane CEO & Managing Director Rosaline Ng Joe Goss Frederic de Rougemont David Mariner Ross Harper Chief Financial Officer Divisional Chief Executive, CEO, USG Boral President and CEO, Executive General Boral Australia Boral USA Manager, Cement Linda Coates Kylie FitzGerald D
Slide 7: Boral's Fix Execute Transform program
Boral’s Fix Execute Transform program Our goal is to transform Boral into a global building and construction materials company that is known for its world-leading safety performance, innovative product platform and superior returns on shareholders’ funds. FIX EXECUTE TRANSFORM 2 years 4 years 6 year
Slide 8: A strong safety culture; Boral Australia
A strong safety culture Employee and Contractor RIFR1 (per million hours worked) LTIFR MTIFR 21.4 19.0 17.4 13.6 12.1 19.4 17.2 8.8 15.5 11.7 10.3 7.5 2.0 1.8 1.9 1.9 1.8 1.3 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1. Recordable Injury Frequency Rate, which comprises Medical Treatment Injury Frequ
Slide 9: Boral Australia revenue segments and project pipeline
Boral Australia revenue derived from various segments Boral’s Australian Boral’s Australian revenue by end-market1, % revenue by state1, % Other Detached WA / NT Other dwellings engineering 5 5 17 11 Multi- NSW / ACT dwellings 10 QLD Roads, 22 44 highways, 33 subdivisions & bridges 13 Alterations 23
Slide 10: Boral Gypsum and Boral USA
Boral Gypsum Boral’s 50% share of the USG Boral joint venture Reported equity income1, A$m Underlying results Pre JV USG Boral Revenue, A$m 59 49 1,397 1,268 1,091 919 FY2013 FY2014 FY2015 FY2016 FY2015 FY2016 EBIT2, A$m 179 141 83 102 1. Post-tax equity income from Boral‘s 50% share of the USG Bora
Slide 11: North American Bricks joint venture with Forterra
North American Bricks joint venture with Forterra Quebec • Combined manufacturing 1 Ontario capacity of 2,639 million standard 3 brick equivalent 1 2 – 27 clay brick manufacturing 1 operations (including 4 mothballed) 1 4 2 1 2 1 6 – 2 concrete brick manufacturing 2 2 2 4 1 3 3 operations (including
Slide 12: Boral TruExterior Siding & Trim; Discovery Center
Boral TruExterior® Siding & Trim Boral Discovery Center, San Antonio, Texas 24
Slide 13: Our strategic priorities
Our strategic priorities Transforming Boral Our vision is to transform Boral for performance excellence and sustainable growth Boral Australia USG Boral Boral USA • Maintain and strengthen our • Organic growth over the • Growing earnings through leading, integrated medium and long term cyclical mark
Slide 14: Boral Australia 1Q FY2017 trading update
More wet weather than seasonal averages in 1Q FY2017 Volume of rainfall in 1Q (1 July – 30 Sept) Rain impacted work days1 in 1Q 1Q FY2017 Sydney Melbourne 8 8 6 6 4 4 7 7 2 2 2 1 0 0 FY2016 FY2017 FY2016 FY2017 5 Brisbane 10 Perth 1Q FY2016 4 8 3 6 2 4 4 8 1 2 4 0 0 0 FY2016 FY2017 FY2016 FY2017 1.
Slide 15: USG Boral and Boral USA trading update
USG Boral • Results ahead of our expectations in 1Q FY2017 1Q FY2017 • Continued penetration of Sheetrock® with strong results in Australia and Korea, as trading well as in smaller country operations, like Vietnam update • Improved performance in Indonesia • Maintain expectations that USG Boral will
Slide 16: Outlook for FY2017
Outlook for FY2017 FY2017 EBIT expected to be higher than FY2016 • Stronger pricing and increasing infrastructure volumes should deliver benefits in 2H • ~$6.5m lower equity earnings in FY2017 than FY2016 due to the divestment of Boral’s share of East Coast bricks JV in 1H FY2017 • Taking into accou
Slide 17: Item 1 – Financial Reports; Item 2 – Remuneration Report
Item 1 – Financial Reports To consider the Financial Report, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2016. 33 Item 2 – Remuneration Report To consider and, if thought fit, to pass the following resolution as a non-binding ordinary resolution: “To adopt the Remunerat
Slide 18: Return on funds employed (ROFE)
Chairman of the Remuneration & Nomination Committee Kathryn Fagg Return on funds employed (ROFE) EBIT1 to average funds employed (ROFE), % 12.5% 9.1% 8.5% 6.6% 4.7% 4.7% FY2012 FY2013 FY2014 FY2015 FY2016 FY2019 FY2019LTI hurdle LTI for hurdle FY2017 LTI grant2 1. Excluding significant items 2. Hurd
Slide 19: Item 2 – Remuneration Report and proxies
Item 2 – Remuneration Report To consider and, if thought fit, to pass the following resolution as a non-binding ordinary resolution: “To adopt the Remuneration Report for the year ended 30 June 2016.” 37 Item 2 – Remuneration Report Proxies Proxies For 368,167,352 Open 7,687,256 Against 130,942,051
Slide 20: Item 3.1 – Election of Ms Karen Moses
Item 3 – Election and re-election of Directors Item 3.1 Election of Ms Karen Moses To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Karen Moses, who retires in accordance with clause 6.3(h) of the Company’s Constitution, being eligible, be elected as
Slide 21: Item 3.1 proxies; Item 3.2 re-election of Dr Eileen Doyle
Item 3.1 – Election of Ms Karen Moses Proxies Proxies For 491,667,328 Open 7,872,390 Against 7,520,194 % to be cast FOR the resolution* 98.2% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 41 Item 3 – Election and re-election of Directors Item 3.2 Re-election of Dr Ei
Slide 22: Item 3.2 – Re-election of Dr Eileen Doyle
Dr Eileen Doyle Item 3.2 – Re-election of Dr Eileen Doyle Proxies Proxies For 496,025,096 Open 7,991,756 Against 3,163,812 % to be cast FOR the resolution* 99.1% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 44
Slide 23: Item 4 – Award of Rights to Mike Kane
Item 4 – Award of Rights to Mike Kane To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That approval is given for the award to Mike Kane, the CEO & Managing Director, of rights to fully paid ordinary shares in the Company on the terms described in the Exp
Slide 24: Item 5 – Non-executive Directors' Fee Pool
Item 5 – Non-executive Directors’ Fee Pool To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That the maximum aggregate amount available for payment by way of remuneration to all non-executive Directors per annum be increased by $250,000 from $1,750,000 to
Slide 25: Thank you for attending
Thank you for attending Boral Limited Annual General Meeting 2016 Disclaimer The material contained in this document is a presentation of information about the Group’s activities current at the date of the presentation, 3 November 2016. It is provided in summary form and does not purport to be compl
Slide 26: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 3 November 2016 Sydney 51