Boral Ltd.

Boral — H1 2008 Earnings Presentation

27 slides from Boral's earnings presentation, Feb 13, 2008

1. Slide 1: Results for the half year to 31 December 2007

   RESULTS FOR THE HALF YEAR TO 31 DECEMBER 2007 CEO & MANAGING DIRECTOR, ROD PEARSE 13 FEBRUARY 2008 Agenda ƒ Financial Highlights and Markets Review ƒ Financial Results ƒ Divisional Performance ƒ Perform & Grow Strategy ƒ Outlook Results for the half year to December 2007 2 1

2. Slide 2: Financial highlights & markets review

   financial highlights & markets review Asia Plasterboard Herons Creek Mill, Mobile Crushing Rig, Timber Queensland 1H2008 Financial results Revenue 5% to $ 2.6b EBITDA 6% to $ 360m EBIT 10% to $ 240m Net Interest 4% to $ 57m Profit after tax 10% to $ 132m EPS 11% to 22.0 cents Interim dividend unchan

3. Slide 3: A solid lift in Australian EBITDA more than offset by offshore decline

   A solid lift in Australian EBITDA ( $42m) more than offset by a large decline in offshore EBITDA ( $64m) EBITDA (A$m) 1H2007 1H2008 Construction Building Materials Products USA Asia $31m (15%) $11m (14%) $61m (68%) $3m (22%) 236 205 79 90 90 29 12 9 ƒ Lift in non-dwellingsƒ Particularly strong in ƒ

4. Slide 4: Dwellings strengthened in Qld, Victoria and SA but weak in NSW

   Dwellings strengthened in Qld, Victoria and SA but remain weak in NSW and are softer in WA Percentage change in dwellings approvals and non-dwellings value of work approved – 1H2008 vs 1H2007 Detached Multi-dwellings Non-dwellings 59% 36% 32% 20% 12% 16% 13% 11% 1% 8% 3% 9% 6% 0% -3% -4% -17%-11% Au

5. Slide 5: Concrete volumes up; US housing market continued to deteriorate

   Concrete volumes up (except in NSW), underpinned by non-dwellings and RHS&B Readymix Concrete Production1 Changes in Australian readymix concrete (MAT, January 1999 to November 2007, ‘000) production1 – 1H2008 vs 1H2007 ‘000 cubic metre change Percentage change 9,000 Qld 8,000 SA 23 7,000 NSW 4% 6,0

6. Slide 6: Housing starts in Bricks states fell by 26%

   Housing starts in Bricks states fell by 26% in the December half % change in Dwellings Starts 1H2008 vs 1H2007 MI 1 to 20% IA 0 to -9% OH IL IN MD -10 to -14% KS MO WV KY VA -15 to -19% OK TN -20 to -24% AR NC -25 to -29% SC MS GA -30 to -34% TX LA AL -35 to -44% Boral Brick plants -45 to -54% -55 t

7. Slide 7: Financial results

   Non-dwelling activity in US Construction Material states increased 12% in the December half % change in Non-dwellings VWC 1H2008 vs 1H2007 1 to 20% 0 to -9% CO -10 to -14% VA -15 to -19% OK AR -20 to -24% -25 to -29% GA TX -30 to -34% FL -35 to -44% BMTI Key Market -45 to -54% Construction Materials

8. Slide 8: Profit after tax down 10% to $132m in 1H2008

   Profit after tax down 10% to $132m in 1H2008 A$m 1H2008 1H2007 %∆ Revenue 2,626 2,492 5 EBITDA 360 383 (6) EBIT 240 267 (10) Net Interest 57 55 4 Profit before tax 183 212 (14) Tax 51 65 (22) Profit after tax 132 147 (10) Results for the half year to December 2007 15 Revenues benefiting from price i

9. Slide 9: Margins eroded because of cyclical downturns in USA & NSW

   But margins have eroded because of cyclical downturns in the USA & NSW and the related loss of variable contribution EBIT / Sales EBITDA / Sales 20% 20% 16% 16% 15.4% 13.7% 12% 10.7% 12% 9.1% 8% 8% 4% 4% 0% 0% FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 1H07 1H08 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

10. Slide 10: Boral's balance sheet remains in good shape

    Boral’s balance sheet remains in good shape As at Dec-07 Dec-06 A$m Cash flow from operating 223 107 activities Net debt 1,609 1,637 Net debt / equity 53% 58% Net Interest cover 4.2 x 4.9 x Funds employed 4,635 4,482 Return on funds employed (MAT) 10.9% 13.1% Return on equity (MAT) 9.4% 11.9% Result

11. Slide 11: $100m off-market share buy-back as part of capital management

    Boral announces $100m off-market share buy- back as part of capital management program ƒ Off-market share buy-back (“Buy-Back”) ~$100m or ~3% of issued shares ƒ The Buy-Back will: – be undertaken at a tender discount of between 5% and 14% of the Market Price1 – not affect Boral’s future capacity to

12. Slide 12: Divisional performance

    Strong sustainability performance Lost time injury frequency rate (LTIFR) (per 1 million hours worked) 9.0 9.0 5.1 5.0 5.0 4.5 4.2 3.1 2.8 2.3 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 1H08 Results for the half year to December 2007 23 divisional performance Construction of EastLink, Fly Ash CBO

13. Slide 13: Construction Materials: EBITDA up 15%

    Construction Materials: EBITDA up 15% driven by stronger volumes and price gains Sales revenue EBITDA / sales A$b A$m 1H08 1H07 %∆ 2H sales 3.0 24% Sales 1,454 1,271 14 1H sales 2.5 20% EBITDA 236 205 15 EBIT 167 137 22 2.0 16% Funds employed 2,339 2,289 2 1.5 12% EBITDA/sales % 16.2 16.1 1.0 8% EBI

14. Slide 14: Building Products: EBITDA up 14%

    Building Products: EBITDA up 14% due to improved pricing and volume Sales revenue EBITDA / sales A$b A$m 1H08 1H07 %∆ 2H sales 1.6 18% 1H sales Sales 687 646 6 16% 1.4 EBITDA 90 79 14 1.2 14% 12% EBIT 63 53 19 1.0 10% Funds employed 1,153 1,058 9 0.8 8% 0.6 EBITDA/sales % 13.1 12.2 6% 0.4 EBIT/sales

15. Slide 15: USA: US$ EBITDA down 64% due to housing downturn

    Managing capacity through the downturn Australian East Coast Brick Capacity Planning 1H07 2H07 1H08 JUL-06 DEC-07 Darra Kiln 1 Darra Kiln 3.1 and 3.2 Kempsey Badgerys Bringelly Albury Scoresby Thomastown Full Operation Slow Down Kiln Shut* * Denotes temporary closure of part of site Results for the

16. Slide 16: USA: underlying revenues down; utilisation in bricks reduced

    USA: underlying revenues down because of housing market-related volume reductions Ext. sales 1H08 1H07 %∆ volume ∆ price ∆ EBITDA ∆ US$m US Bricks 197 249 -21 Clay Tiles 13 14 -4 Concrete Tiles1 Fly Ash 57 60 -4 Construction 66 39 68 Materials TOTAL 333 361 -8 1. MonierLifetile JV is equity accounte

17. Slide 17: MonierLifetile utilisation; Asia EBIT down $3m

    Utilisation in MonierLifetile reduced from 59% in 1H07 to 38% in 2H07 to 30% in 1H08 Rooftile Capacity Planning 1H07 2H07 1H08 MonierLifetile JUL-06 DEC-07 Boca Raton, FL Denver, Co Gilroy, CA Henderson, NV Kansas City, MO Katy, TX Lake Wales #1, FL Lake Wales #2, FL Pompano Beach, FL Tacoma, WA Lat

18. Slide 18: Perform & Grow strategy

    perform & grow strategy New Product - Mesa Berrima Cement Sunstate Cement Blend Brick, USA Mill 7 Upgrade Capacity Upgrade Boral’s Perform & Grow strategy is delivering value through the cycle Price • Sustainable pricing outcomes Pricemanagement management • New products & markets (eg. engineered Re

19. Slide 19: PEP cost savings helping to offset cost escalation

    PEP cost savings (~$53m in 1H FY2008) are helping to offset cost escalation Key cost issues Step change initiatives Construction ƒ Wage & equipment cost ƒ Network de-bottlenecking in Qld Materials, escalations in booming ƒ Six Sigma in NSW and Victoria Australia resource sector ƒ Branch rationalisat

20. Slide 20: $219m of growth capital invested during the period

    $219m of growth capital invested during the period to strengthen Boral’s leading positions Asia Plasterboard1 plants: ƒ South Korea ƒ India ƒ China Australia USA ƒ Sunstate Cement1 ƒ Oklahoma concrete & quarries acquisitions grinding capacity ƒ Terre Haute brick plant ƒ New Queensland plasterboard p

21. Slide 21: Sunstate Cement JV investing $85m; US construction materials platform

    Our 50%-owned Sunstate Cement JV is investing $85m to increase grinding capacity in Queensland ƒ $85m (total) investment to increase Sunstate Cement's clinker grinding capacity from 1.0m tpa to 1.5m tpa ƒ Additional 70k tonnes of clinker storage capacity, 4k tonnes of cement storage capacity, and ne

22. Slide 22: Outlook: $33m investment in new WA masonry plant

    Boral has announced an investment of $33m in a new masonry plant in WA Clay Shed Kiln 9 & 10 ƒ New $33m low-cost, environmentally efficient masonry plant at Middle Swan in WA to be constructed by June 2009 ƒ Will replace existing 40+ year old, high cost, low capacity Cannington plant ƒ New plant wil

23. Slide 23: Australian residential starts around the bottom of the cycle

    Australian residential starts are around the bottom of the cycle (BIS Shrapnel) Australian dwelling starts by state (‘000) 200 160 Australia 120 80 60 NSW 50 Vic Qld 40 30 20 WA 10 SA Tas NT 0 FY07f FY08f FY09f FY10f FY11f FY12f FY13f FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01

24. Slide 24: Australian markets are strengthening

    Australian markets are strengthening Australian Building Activities – Value of Work Done $97/98 billion % change 65 6.0 5.9 60 RHS&B 4.8 1.6 55 (1.7) 2.2 Non-dwellings 2.3 50 Dwellings 1.4 45 (1.1) 40 (0.2) (4.3) 35 6.3 30 25 20 11.0 12.1 15 4.9 5.5 10 5 0 FY08f FY09f FY10f FY11f FY93 FY94 FY95 FY96

25. Slide 25: Two years into the US housing downturn; next 12 months difficult

    We are two years into the current US housing downturn; the next 12 months will be difficult USA dwelling starts cycles - peak to peak (Seasonally adjusted, moving annual total, ‘000) 2,400 Nov-2005 Jul-1969 to Apr-1973 2,200 Current downturn 2,000 Feb-1973 to Mar-1979 1,800 Dec-1978 to Oct-1984 1,60

26. Slide 26: Demand growth in Asia is benefiting LBGA

    Demand growth in Asia is benefiting LBGA; Indonesia and Thailand are slower to recover South Korea Thailand Indonesia China Value of construction orders Gross fixed capital Value of completion. Total building received. Trillion Won formation. Billion Bhat Trillion Rp commencements. Million m2 1,000

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