Boral — FY2010 Earnings Presentation
13 slides from Boral's earnings presentation, August 2010
Slide 1: Boral Limited: Results Presentation for Year Ended 30 June 2010
Boral Limited Building something great Results Presentation for the Year Ended 30 June 2010 Financial highlights – continuing operations Revenue Net debt $4.5bn down 5% $1.2bn down from $1.5bn EBIT1 Gearing (D/E) $247m down 4% 45% down from 55% Profit after tax1 Full year dividend $145m up 7% 13.5c
Slide 2: Operational review: Boral Construction Materials FY10 performance
Operational review Mark Selway Chief Executive Boral Construction Materials FY10 performance QEU 3% (A$m) 2010 2009 %∆ Quarries 20% Revenue 2,119 2,261 (6) Asphalt 32% EBITDA 297 331 (10) EBIT 201 231 (13) Concrete 45% ROFE 15.7% 16.7% Revenue breakdown Concrete Operating Structure Realigned to incr
Slide 3: Boral Building Products and Boral Cement FY10 performance
Boral Building Products FY10 performance Asia JV1 Plasterboard 16% (A$m) 2010 2009 %∆ 28% Revenue 1,206 1,137 6 Timber 19% EBITDA 158 110 44 Bricks Masonry 20% EBIT 101 53 90 8% Roofing 9% ROFE 7.7% 3.9% Revenue breakdown Clay & Concrete Products Operating Structure Realigned to increase focus on op
Slide 4: Boral USA and Other businesses FY10 performance
Boral USA FY10 performance Construction (A$m) 2010 2009 %∆ Materials 21% Revenue 364 545 (33) Bricks 43% EBITDA (67) (61) (11) Fly Ash 22% EBIT (104) (109) 5 Roofing1 14% ROFE (15.2%) (13.4%) Revenue breakdown Bricks Operating Structure Realigned to increase focus on operational and customer initiat
Slide 5: Financial review: Results summary
Financial review Andrew Poulter Chief Financial Officer Results summary Year ended 30 June 2010 Year ended 30 June 2009 Group Discontinued Continuing Group Discontinued Continuing $m Operations Operations $m Operations Operations $m $m $m $m Sales 4,599 105 4,494 4,875 147 4,728 EBITDA 505 (13) 517
Slide 6: Consolidated income statement and significant items
Consolidated income statement - before significant items 2010 2009 Continuing Operations $m $m Revenue 4,494 4,728 EBIT 271 281 EBIT to Sales % 6.0 5.9 Net Interest (97) (127) Profit before Tax 174 154 Income Tax Expense (28) (18) Minority Interest (1) - Profit from Continuing Operations after Tax 1
Slide 7: Group revenue and EBIT; US market activity
Group revenue and EBIT External Revenue EBIT Margin Continuing Operations 2010 2009 2010 2009 2010 2009 $m $m $m $m % % Construction Materials 2,119 2,261 201 231 9.5% 10.2% Boral Building Products 1,206 1,137 101 53 8.4% 4.7% Cement 512 509 88 108 17.2% 21.3% USA 364 545 (104) (109) (28.5%) (20.0%)
Slide 8: Cash flow and net debt reconciliation; debt maturity profile
Cash flow and net debt reconciliation June 2010 June 2009 Cash Flow June 2010 June 2009 Net Debt Reconciliation $m $m $m $m EBIT 252 276 Opening balance (1,514) (1,515) Depreciation 253 263 Change in working capital 44 (6) Cashflow 281 286 Interest & tax (113) (173) Non cash (FX) 50 (285) Equity ear
Slide 9: Net interest expense and taxation
Net interest expense Total Continuing Operations 2010 2009 Variance $m $m $m Interest Costs (102) (135) 33 Interest Income1 5 8 (3) Net Interest Costs (97) (127) 30 Significant items - 29 (29) Reported interest costs (97) (98) 1 Net Interest Cover (EBIT) x 2.4 x 2.2 1. Excludes Significant items 17
Slide 10: Strategy and outlook: Scorecard FY2010
Strategy and outlook Mark Selway Chief Executive Scorecard – FY 2010 Laying the foundations Revenue1 $4.5bn Profit after Tax1 $145m Cash generation Down 5% Up 7% $459m Achieved full year results in tough market conditions $285m asset write-down from non core underperforming businesses Portfoli
Slide 11: Priorities for FY11 and outlook
Priorities for FY11 The strategic building blocks for growth Ensure the operational changes are robustly implemented Focus on innovation and development of great new products 1. Laying the foundations LEAN and Sales & Marketing excellence initiatives Sector best performance to drive operationa
Slide 12: Australian market activity: non-residential and engineering
Appendix Australian market activity Stimulus supported non-residential; engineering still strong Non-Residential Building Engineering Construction MAT Value of work commenced ($m)1 MAT Value of work commenced ($m)2 30,000 90,000 82,584 80,000 25,000 24,787 70,000 20,000 60,000 Commercial & Industria
Slide 13: Australian market activity: strengthening activity in housing
Australian market activity Strengthening activity in housing Australian dwelling starts (‘000)1 200 Total dwelling starts 180 169,568 160 140 120 100 80 Multi dwelling starts 60 54,796 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1. Seasonally adjusted annualised quarterly starts f