Boral — FY2000 Earnings Presentation
14 slides from Boral's earnings presentation, Aug 24, 2000
Slide 1: New Boral delivers improved performance
New Boral delivers improved performance 1999/00 Annual Results Rod Pearse 23/24 August 2000 Presentation outline • Highlights and background • Financial results • Operations review • Growth • Outlook and summary NOTE: The results & commentary in this presentation are based on proforma accounts for y
Slide 2: Highlights of the year
Highlights of the year • Demerger from energy completed • New Board, senior management team • Major softwoods and Asian plasterboard JVs • Divested nine businesses in 16 transactions • Boral net profit up 15% • ROFE up from 11.6% to 13.6% • $455m operating cash flow • Net debt reduced by $469 millio
Slide 3: Demerger undertakings delivered
Demerger undertakings delivered Objective Scorecard • EBIT in range of $320–355m • Delivered $374m • Operational improvements, • $125m cost savings reduced overheads • Divest $400m assets by • On track: $262m assets sold Dec-01 • Gearing from 83% to 45-55% • Gearing at 54% at 30 Jun-00 by Dec-01 • D
Slide 4: Improved full year results
Improved full year results A$ million FY00 FY99 % improvement Sales revenue 4030 3932 2.5 EBIT* 374 349 7.2 PBT & abnormals 283 246 15.0 PAT before 181 157 15.0 abnormals EPS 31.8 ¢ 27.7 ¢ 15.0 ROFE 13.6% 11.6% 16.9 Dividend 18 ¢ 18 ¢ - *excludes POSA Financial results We are reshaping our portfolio
Slide 5: Asset utilisation and returns improving
Asset utilisation and returns improving Sales / assets % EBIT / sales % EBIT / assets % 110 12 12 105 10 10 100 8 8 95 6 6 90 4 4 85 2 2 80 0 0 /95 /96 /97 /98 /99 /00 /95 /96 /97 /98 /99 /00 /95 /96 /97 /98 /99 /00 94 95 96 97 98 99 94 95 96 97 98 99 94 95 96 97 98 99 * EBIT before POSA Results for
Slide 6: New Boral's balance sheet is stronger
New Boral’s balance sheet is stronger A$ million FY00 FY99 % improvement Cap. expenditure 152 232 34.4 Net debt 961 1430 32.8 Interest (90) (120) 25.4 Net debt/equity 54% 83% 35.1 EBIT/interest cover 4.1 x 3.1 x 36.4 EBITDA/interest cover 6.4 x 4.7 x 36.7 NTA/ share $2.78 $2.61 6.5 Financial results
Slide 7: Funds employed down, ROFE up
Funds employed down, ROFE up Funds employed, A$m FY00 FY99 % improvement Building Products 907 1135 20.1 Construction Mat’ls 1221 1393 12.3 USA 572 553 (1.7) Other 38 66 50.0 Total 2738 3147 13.0 ROFE, % Building Products 13.1 6.1 116 Construction Mat’ls 13.7 14.0 (2.1) USA 17.1 16.3 4.9 Corporate/O
Slide 8: Building products performed strongly
Building products performed strongly Sales up 13% to $1442m EBIT up 72% to $119m EBIT margin up from 5.4% to 8.2% ROFE up from 6.1% to 13.1% Highlights: • Strong growth in residential starts • Bricks, masonry, roofing earnings above cost of cap. • Improved Australian plasterboard results • Asia plas
Slide 9: Construction materials: weaker performance
Construction materials: weaker performance Sales up 2% to $1776m EBIT down 14% to $167m EBIT margin down from 11.2% to 9.4% ROFE down from 14.0% to 13.7% Divisional cash flow up 56% Highlights: • Lower non-dwellings, infrastructure activity • Concrete and quarry earnings up • Cement volumes up but p
Slide 10: Record USA sales and earnings
Record USA sales and earnings Sales up 2% to A$668m EBIT up 9% to A$98m EBIT margin up from 13.7% to 14.7% ROFE up from 16.3% to 17.1% Highlights: • Higher earnings despite housing demand decline • Strong results from bricks and clay tiles • Higher fly ash costs - earnings declined • Disappointing o
Slide 11: Boral-wide initiatives to improve efficiencies and lower costs
Boral-wide initiatives to improve efficiencies and lower costs • Improved margin management • Operations improvement, cost reduction • Business systems rationalisation • Shared services rationalisation • Effective procurement • E-commerce Operations review Presentation outline • Highlights and backg
Slide 12: Disciplined growth strategies
Disciplined growth strategies • Increased financial flexibility • Not growth for growth’s sake • Priorities driven by shareholder value • Seeking opportunities to build on existing businesses and skills • Increasingly offshore Growth We are pursuing growth opportunities • Australian construction mat
Slide 13: Outlook for 2000/01
Presentation outline • Highlights and background • Financial results • Operations review • Growth • Outlook and summary Presentation outline Outlook for 2000/01 • Planning for downturn in Australia, USA – Timing and magnitude uncertain – Strong upturn forecast from 2H calendar 2002 • Boral in strong
Slide 14: New Boral's imperatives: perform & grow
New Boral’s imperatives “perform & grow” ACHIEVED PLANNED Operational Improved Improvement $125m savings 2-3% ongoing + operating 40% HO reduction step change Selling, general margins & admin Working $110m stock & trade Further $40m capital receivables reduction reduction Focused Capital SIB capex a