Boral — Shareholder Meeting (October 2001)
33 slides from Boral's shareholder meeting presentation, Oct 29, 2001
Slide 1: 2001 Annual General Meeting
2001 ANNUAL GENERAL MEETING 29 October 2001, Sydney 2001 Annual General Meeting
Slide 2: Chairman's Address
Chairman’s Address Dr Ken Moss 2001 Annual General Meeting
Slide 3: Strategic Intent
Strategic Intent Boral intends to be a value-driven, focused building and construction materials supplier operating in Australia and increasingly offshore 2001 Annual General Meeting
Slide 4: Financial Performance
Financial Performance • Solid financial performance in difficult trading conditions • $3.28 billion in sales revenue • $127m profit after tax (excluding profit on sale of assets) • Well managed working capital and reduction in stay-in-business capital expenditure • Improved price and cost reduction
Slide 5: Environmental Performance
Environmental Performance Sustainable development in environmental sense: • Better resource utilisation • Energy optimisation • Emission & pollution management • Waste minimisation • Recycling • Site rehabilitation 2001 Annual General Meeting
Slide 6: Social Performance
Social Performance • Boral’s 500 sites rely on good community relationships • Launch of TOWARDS A GREENER FUTURE program – a three year partnership with Landcare and CVA • Focus on employee development and succession planning • Significant safety improvements 2001 Annual General Meeting
Slide 7: Boral's Growth Strategy
Boral’s Growth Strategy • Grow in Australia and increasingly offshore • $400 million divestment target exceeded within 12 months of demerger • Sound balance sheet - gearing maintained at 53% debt to equity • Over $400 million spent or committed on growth initiatives by December 2001 2001 Annual Gene
Slide 8: Share Price Performance
Share Price Performance $3.80 25 Feb-00 $3.40 $3.00 old Boral new Boral old Boral nominal $2.60 $2.20 $1.80 $1.40 Origin $1.00 00 01 9 0 1 00 01 0 1 00 01 9 0 -9 -0 -0 r-0 r-0 -9 -0 n- n- g- g- b- b- ct ct ct ec ec Ap Ap Ju Ju Au Au Fe Fe O O O D D 2001 Annual General Meeting
Slide 9: Total Shareholder Returns
Total Shareholder Returns 100% 80% BORAL 60% Build Mat’ls Index 40% ASX 100 20% 0% TSR -20% -40% -60% -80% -100% 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 2001 Annual General Meeting
Slide 10: 2001 Annual General Meeting
2001 Annual General Meeting
Slide 11: Managing Director's Comments
Managing Director's Comments Mr Rod Pearse 2001 Annual General Meeting
Slide 12: Strategic & Structural Changes
Strategic & Structural Changes 1. Extensive operational improvement program 2. More streamlined organisational structure 3. Managed divestment program 4. Disciplined growth strategies 2001 Annual General Meeting
Slide 13: Financial Objectives
Financial Objectives 1. Exceed the weighted average cost of capital (WACC) on a sustainable basis through the building cycle 2. Beat the competition in comparable markets 3. Deliver superior total shareholder returns (TSR) 2001 Annual General Meeting
Slide 14: Australian building & construction activity bottoms
Australian building & construction activity bottoms 14,000 12,000 Value of Work Done $99 / 00 million 10,000 (seasonally adjusted) 8,000 6,000 Dwellings incl Alterations & Additions 4,000 2,000 Non-Dwellings Roads, Highways & Subdivisions 0 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 -8 -8 -8 -9 -9 -9 -9 -9 -9 -9
Slide 15: Operations
Operations 2001 Annual General Meeting
Slide 16: A Safer Workplace
A Safer Workplace LTIFR* % hours lost 20 0.45 16 0.37 15 0.34 0.34 10 0.23 0.21 8 7 0.15 4 95 96 97 98 99 00 01 95 96 97 98 99 00 01 * LTIFR is the frequency rate of lost time injuries per million hours worked 2001 Annual General Meeting
Slide 17: Boral Sustainability Self Diagnostic Tool
Boral Sustainability Self Diagnostic Tool • Determines sustainable development status of each business to establish targets and plans • 20 elements across five groupings: 1. Business Management 2. Financial Planning 3. Human Resources 4. Social Responsibility 5. Environment 2001 Annual General Meeti
Slide 18: Delivering a Growth Strategy
Delivering a Growth Strategy ASIA Plasterboard* Indonesia #1 USA Malaysia #1 Bricks #1 China (east) #1 Roof tiles #1 Korea #1 Fly ash #2 Thailand #1 The Philippines #1 Indonesia concrete #1 AUSTRALIA Cement #1 Concrete #1 Quarries #1 Asphalt #2 *Asian plasterboard in joint venture with Lafarge Brick
Slide 19: 2001 Annual General Meeting
2001 Annual General Meeting
Slide 20: Resolution 1: Financial Reports
Resolution 1: Financial Reports 2001 Annual General Meeting
Slide 21: Resolution – Financial Reports
Resolution 1 – Financial Reports Proxy Votes % to be cast for the resolution* FOR xxxxxxxxxx OPEN xxxxxxxxxx Xx% AGAINST xxxxxxxxxx * On basis Chairman votes open proxies in his favour FOR 2001 Annual General Meeting
Slide 22: Resolution 2: Election of Directors
Resolution 2: Election of Directors 2001 Annual General Meeting
Slide 23: Nominee: Elizabeth A Alexander
Resolution 2 – Election of Directors Nominee: Elizabeth A Alexander 2001 Annual General Meeting
Slide 24: Resolution – Election of Directors: Elizabeth A Alexander
Resolution 2 – Election of Directors - Elizabeth A Alexander Proxy Votes % to be cast for the resolution* FOR xxxxxxxxxx OPEN xxxxxxxxxx Xx% AGAINST xxxxxxxxxx * On basis Chairman votes open proxies in his favour FOR 2001 Annual General Meeting
Slide 25: Nominee: Christine Milne
Resolution 2 – Election of Directors Nominee: Christine Milne 2001 Annual General Meeting
Slide 26: Resolution – Election of Directors: Christine Milne
Resolution 2 – Election of Directors - Christine Milne Proxy Votes % to be cast for the resolution* FOR xxxxxxxxxx OPEN xxxxxxxxxx Xx% AGAINST xxxxxxxxxx * On basis Chairman votes open proxies in his favour AGAINST 2001 Annual General Meeting
Slide 27: Nominee: Kenneth J Moss
Resolution 2 – Election of Directors Nominee: Kenneth J Moss 2001 Annual General Meeting
Slide 28: Resolution – Election of Directors: Kenneth J Moss
Resolution 2 – Election of Directors - Kenneth J Moss Proxy Votes % to be cast for the resolution* FOR xxxxxxxxxx OPEN xxxxxxxxxx Xx% AGAINST xxxxxxxxxx * On basis Chairman votes open proxies in his favour FOR 2001 Annual General Meeting
Slide 29: Resolution 3: Approval of Rod Pearse's Options
Resolution 3: Approval of Rod Pearse’s Options 2001 Annual General Meeting
Slide 30: Options exercise hurdle
Options exercise hurdle Boral’s TSR # % options that can be exercised Lower than the 50th percentile of the 0% ASX 100 Reaches the 50th percentile of the ASX 100 50% * Reaches the 75th percentile of the 100% ASX 100 # TSR is % share price appreciation plus dividend yield during the exercise period *
Slide 31: Example of Options
Example of Options Share TSR* Assumed Value of Increased value price on achieved performance 700,000 options to shareholders exercise relative to peers pre-tax Nil to 25th $3.50 5.6% pa percentile Nil $0 million $4.50 14.1% pa 25th percentile Nil $568 million $5.50 21.4% pa 50th percentile $700,000
Slide 32: Resolution – Approval of Options
Resolution 3 – Approval of Options Proxy Votes % to be cast for the resolution* FOR xxxxxxxxxx OPEN xxxxxxxxxx Xx% AGAINST xxxxxxxxxx * On basis Chairman votes open proxies in his favour FOR 2001 Annual General Meeting
Slide 33: 2001 Annual General Meeting
2001 Annual General Meeting