Boral — Shareholder Meeting (October 2013)
18 slides from Boral's shareholder meeting presentation, Oct 31, 2013
Slide 1: Annual General Meeting 2013 – Chairman's Address
ANNUAL GENERAL MEETING 2013 Chairman’s Address Dr Bob Every AO
Slide 2: Reshaping Boral to improve returns through the cycle
Reshaping Boral to improve returns through the cycle • Further portfolio changes made • Organisational structure streamlined • Reduction in workforce and overhead costs • Transforming Boral – World-leading plasterboard & ceilings joint venture with USG • Delivering on Boral’s immediate priorities –
Slide 3: Market conditions during FY2013 were mixed; Financial Performance
Market conditions during FY2013 were mixed Asia4 South Korea Thailand USA China Single-family housing starts1 25% Indonesia Non-residential activity 2% Vietnam Malaysia Australia Detached housing starts2 4% Alterations & additions3 8% Non-residential3 4% Roads & highways4 3% 1. US Census seasonally
Slide 4: Significant Items; Capital Management
Significant Items A$ FY2013 Capacity rationalisation and impairments ($399m) Impairments in respect of: Building Products - ($209m) Organisational restructure ($60m) Closures and structural declines in Bricks, Timber and Windows Gain on disposal of Asian construction $12m Construction Materials & ma
Slide 5: Executive Remuneration Structure; Board of Directors
Executive Remuneration Structure Return on average funds employed (ROFE1) introduced as second performance hurdle under long term incentive grant (LTI) 15.0% 8.0% 4.7% 4.7% 2 FY12 FY13 FY16 LTI Hurdle Long term Target 1. EBIT to average funds employed 9 2. Hurdle at which 100% of ROFE LTI component
Slide 6: CEO & MD's Address – Boral Group Executives
Boral Group Executives Rosaline Ng Joe Goss Frederic de Al Borm Darren Schulz Chief Financial Officer Divisional MD, Rougemont President & CEO, Executive GM, Construction Materials Divisional MD, Boral USA Building Products & Cement Gypsum Robert Gates Matt Coren Kylie FitzGerald Dominic Millgate Da
Slide 7: Delivering on Boral's priorities
Delivering on Boral’s priorities ACHIEVEMENTS Manage costs down $105 million in cost reduction initiatives completed Maximise cash generation $173 million in cash proceeds from divestments & sale of surplus land Reduce debt Debt reduced to $1.45 billion at 30 June 2013 Divested Thailand Construc
Slide 8: USG Boral Joint Venture delivers long term value for shareholders
USG Boral Joint Venture delivers long term value for shareholders • Leading plasterboard manufacturing and distribution platform in ® Asia and Australia • #1 or #2 position in markets served + • Exclusive, royalty-free access to USG’s current technologies in perpetuity across Asia, Australasia and t
Slide 9: Boral Construction Materials & Cement; Boral Building Products
Boral Construction Materials & Cement Concrete, Quarries, Cement, 1Q FY2014 Trading Update Asphalt, Transport and Property • Strong outcome with benefits from: Revenue EBIT1 − Curtis Island LNG projects A$ million A$ million − Favourable weather on east coast 281 3,142 − Cost reductions programs 2,9
Slide 10: Boral Gypsum; Boral USA
Boral Gypsum Australia, Korea, Thailand, China, Indonesia, 1Q FY2014 Trading Update Vietnam, Malaysia, India, Philippines • Strong demand in Thailand and Indonesia Revenue 1 EBIT1,2 A$ million A$ million • Robust volumes in China • Price pressures in Korea, China and Vietnam 919 83 • Improved perfor
Slide 11: Concluding Comments
Concluding Comments • In summary, continue to expect in FY2014 − Significantly reduced losses from Building Products and Boral USA − Improved underlying earnings from Boral Gypsum − Ongoing strong results from Construction Materials & Cement • Anticipate improved ROFE1, despite shift to equity accou
Slide 12: Financial Reports; Remuneration Committee Chairman's Address
Item 1 – Financial Reports To consider the financial reports, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2013 23 Remuneration & Nomination Committee Chairman’s Address Dr Brian Clark
Slide 13: Item 2 – Remuneration Report
Item 2 – Remuneration Report To adopt the Remuneration Report for the year ended 30 June 2013 25 Item 2 – Remuneration Report Proxies Proxies For 510,267,466 Open 5,675,360 Against 8,319,880 % to be cast FOR the resolution* 98.0% * On basis open proxies in favour of the Chairman of the Meeting are v
Slide 14: Item 3 – Re-election of Directors
Item 3 – Re-election of Directors 3.1 To re-elect Bob Every as a Director 3.2 To re-elect Eileen Doyle as a Director 3.3 To re-elect Richard Longes as a Director 27 Item 3.1 – Re-election of Bob Every 28
Slide 15: Item 3.1 – Re-election of Bob Every
Item 3.1 – Re-election of Bob Every Proxies Proxies For 509,957,372 Open 6,017,160 Against 15,098,897 % to be cast FOR the resolution* 96.7% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 29 Item 3.2 – Re-election of Eileen Doyle 30
Slide 16: Item 3.2 – Re-election of Eileen Doyle
Item 3.2 – Re-election of Eileen Doyle Proxies Proxies For 523,394,989 Open 5,977,658 Against 1,705,664 % to be cast FOR the resolution* 99.3% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 31 Item 3.3 – Re-election of Richard Longes 32
Slide 17: Item 3.3 – Re-election of Richard Longes; Item 4
Item 3.3 – Re-election of Richard Longes Proxies Proxies For 509,055,569 Open 6,116,916 Against 15,872,684 % to be cast FOR the resolution* 96.6% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 33 Item 4 – Award of Rights to Mike Kane To consider and, if thought fit, t
Slide 18: Item 4 – Award of Rights to Mike Kane
Item 4 – Award of Rights to Mike Kane Proxies Proxies For 494,405,395 Open 5,787,767 Against 26,290,736 % to be cast FOR the resolution* 94.6% * On basis open proxies in favour of the Chairman of the Meeting are voted FOR 35 ANNUAL GENERAL MEETING 2013