Boral — Merger or Acquisition (August 2011)
11 slides from Boral's merger presentation, Aug 17, 2011
Slide 1: Acquisition of LBGA Asian Plasterboard Joint Venture
ACQUISITION OF LBGA ASIAN PLASTERBOARD JOINT VENTURE TM Build something great Exclusive negotiations to acquire Mark Selway, Chief Executive Lafarge 17 share of Asia Plasterboard Joint Venture August 2011 1
Slide 2: Acquisition of LBGA
Investor Presentation: 17 August 2011 ACQUISITION OF LBGA Boral to expand core building materials business by acquiring Lafarge’s share of LBGA joint venture in Asia LBGA LBGA is a joint venture between Boral and Lafarge, formed in 2000 and is the (Lafarge Boral leading supplier of plasterboard an
Slide 3: History of Boral in Asia and Evolution of LBGA
Investor Presentation: 17 August 2011 BORAL ASIA PLASTERBOARD History of Boral in Asia and Evolution of LBGA Revenue Revenue US$197m US$481m Current Calendar 1993 1995 1996 1997 2000 2001 2002 2003 2005 2006 2007 2008 2008 2010 revenue Year is over US$500m Asian financial Global financial crisis cri
Slide 4: Product Profile and Manufacturing Footprint
Investor Presentation: 17 August 2011 LBGA Product Profile and Manufacturing Footprint Plasterboard Ceiling Tiles Plasterboard 2006(1) 2007 2008 2009 2010 2011f Board sales 196 219 235 230 265 296 (million m2) Board plant capacity 289 289 337 337 413 448 (million m2) Metal Studs Compounds Sales Oper
Slide 5: Locations and Competitive Landscape
Investor Presentation: 17 August 2011 LBGA Locations and Competitive Landscape LBGA Plant Locations LBGA 2010 Estimated Market Share Gypsum Energy Capacity Country Name Type Source (M m2 pa) Korea Yosu Synthetic H.Oil/Steam 35 Korea Ulsan Synthetic H.Oil/Gas 46 Korea Dangjin 1 Synthetic Gas 37 Korea
Slide 6: LBGA Financials
Investor Presentation: 17 August 2011 LBGA Financials USD $million Year end Year end 12 mths to Year end Revenue (USD $million) Dec 09 Dec 10 June 11 Dec 11f CAGR 10.4% Revenue 401 481 520 576 576 481 441 402 401 EBITDA 73 83 85 94 335 271 289 299 197 225 EBITDA Margin (%) 18.2% 17.3% 16.3% 16.3% EB
Slide 7: Drivers for Organic Growth
Investor Presentation: 17 August 2011 LBGA Drivers for Organic Growth GDP % Growth by Region Plasterboard Demand/GDP per Capita 10 Canada UK 16 Australia France US 14 South Korea Japan Spain Germany 12 Russia Italy Plasterboard Demand per capita 1 China Singapore 10 (m2 per person – log scale) Thail
Slide 8: World Class Capacity: Leading Products to High Growth Markets
Investor Presentation: 17 August 2011 WORLD CLASS CAPACITY Leading Products to High Growth Markets World Class Capacity Core Competitive Advantages Boral production system offers Enhanced Modern, well-equipped facilities in Asia Pacific plasterboard benefits capabilities seven high growth market
Slide 9: Boral and LBGA Combined
Investor Presentation: 17 August 2011 BORAL AND LBGA COMBINED A balanced portfolio with exposure to high growth markets and product areas Pro Forma Revenue by Product Line Pro Forma Revenue by Geography FY2011 FY2011 Asia Other Building Plasterboard 14% North Products 17% America 8% 8% Bricks, Tiles
Slide 10: Pro Forma Financials
Investor Presentation: 17 August 2011 PRO FORMA FINANCIALS Attractive post transaction financials with headroom to grow Pro Forma FY2011 Financials Pro forma revenue 11% higher than FY2011 FY2011 FY2011 % Boral’s FY2011 results AUD $million Boral 1 LBGA Pro Forma Increase Revenue 4,682 520 5,202 1
Slide 11: LBGA Acquisition Summary
Investor Presentation: 17 August 2011 LBGA ACQUISITION SUMMARY An exciting step for the future development of Boral Adds significantly to Boral’s portfolio of high growth markets in Asia. Increases exposure to and more evenly balances portfolio across attractive product areas. LBGA’s leading market