Boral — MonierLifetile — Investor Presentation (December 2003)
15 slides from Boral's investor presentation, December 2003
Slide 1: MonierLifetile: Changing the way people think about roofs
INSERT PICTURE MonierLifetileTM Changing the way people think about roofs December 2003 Outline • Overview • History • “Perform and Grow” strategy 1
Slide 2: Overview of MonierLifetile operations
Overview of MonierLifetile operations Plant also in Guadalajara, Mexico Concrete tiles comprise 6% of the USA pitched roofing market Market share - roofing 0% 1% 0% 3% 2% 3% 85% 6% Asphalt Concrete tile Metal Cedar shake Clay tile Fiber-cement Slate Others Market = 140 million squares* * Source: Fre
Slide 3: Concrete tiles are used largely in new residential construction rather than reroof
Concrete tiles are used largely in new residential construction rather than reroof 2002 Estimated market share for tile – US residential Tile All other 100% 80% 60% 81.6% 99.6% 94.3% 40% 20% 18.4% 0% 0.4% 5.7% New Reroof Total MonierLifetile’s competitive advantages • Parents with building materials
Slide 4: The manufacturing process
The manufacturing process Tanks & silos outside plant Color Color Color Water Cement Sand #1 #2 #3 Stretch-wrap machine Packaged tile to yard Mixing screws Cured tile Stackers (mold drop Sorter Cured tile below) Depalleter (on Mold) Kilns Rack Reject Line 1 Sealer Racker bin Turn- Applicator around
Slide 5: MonierLifetile History: 1962 - 1997
MonierLifetile History: 1962 - 1997 Lifetile 1962: Lifetile was founded in Northern California 1972: Relocated to Rialto, CA and opened several plants as demand soared 1978: Lifetile was purchased by Boral Industries 1996: Renamed Boral Lifetile Inc. MonierLifetile History: 1936 - 1997 Monier 1936:
Slide 6: MonierLifetile History: 1997 - 2000; Perform & Grow strategy
MonierLifetile History: 1997 - 2000 MonierLifetile 1997: Monier and Boral Lifetile merged, becoming MonierLifetile 1999: Disposed of three plants (Corona, Casa Grande, and Ft. Lauderdale), leaving 13 plants “Perform & Grow” strategy 6
Slide 7: Strategic initiatives achieved 2000-2003 and going forward
Strategic initiatives achieved: 2000 - 2003 • Costs down – Rationalized plants – Plant re-engineering / improvements – Re-organized finance team – Re-organized sales & customer service team – Rationalized product range – Plant automation, standardization & continuous improvement • Prices up • Acquir
Slide 8: Rationalized plants & acquired capacity with market proximity
2000 - 2003: Rationalized plants & acquired capacity with market proximity • 2000: Closed Hawaii • 2001: Closed San Bernardino, consolidating production into Rialto facility • 2001: Built second line in Henderson (Las Vegas) • 2001: Acquired Vostile in Kansas City Hawaii • 2002: Built Colorado Plant
Slide 9: Reorganized finance, sales & customer service teams; rationalized product range
2000 - 2003: Reorganized finance team • Up-skilled 13 financial administrators at plants • Completed an extensive training program • Undertook a comprehensive automation program • Brought accounts payable & accounts receivable into head office • Up-skilled head office accountants • Decentralized acc
Slide 10: Plant automation, standardization and continuous improvement
2000 - 2003: Plant automation, standardization and continuous improvement Automation • Moved from hand stacking to automated stacking • US$2.2m investment has resulted in US$1.0m savings per year: labour excluding worker’s compensation Standardization • Converted seven types of flat tiles across Mon
Slide 11: Continuous improvement - sustain and improve by reducing process variation
2000 - 2003: Continuous improvement - sustain and improve by reducing process variation • Document process • Develop Standard Operating Procedures • Train operators • 5S – Housekeeping and employee involvement • Shift briefing by Team Leader SPiD Centres • Top ‘5’ • Benchmarking and transfer of “Bes
Slide 12: Continuous improvement - '5S' Project
2000 - 2003: Continuous improvement - ‘5S’ Project Sort – “Get rid of clutter” Set – “A place for everything and everything in its place 2000 - 2003: Continuous improvement - ‘5S’ Project Shine – “Cleaning and looking for ways to keep it clean and organized” Standardize – “Maintain and Monitor Sort,
Slide 13: '5S' Project; Prices up
2000 - 2003: Continuous improvement - ‘5S’ Project • Each employee has an end of shift sign-off sheet for designated colored area • Audit and SPiD walk • Annual ‘5S’ event 2000 – 2003: Prices up • Price increases of 10% over 3 years • Increased pallet income • Simplified complex pricing structures •
Slide 14: Prices up; Launch Total Roof System
2000 - 2003: Prices up Introducing new higher margin products • English Thatch – mimics wood shake • Barcelona – Espana tile with score line down middle to create shadow line • Pre-Boosted Barcelona – mimics old world installation • Madera – replicates cedar shake roof • New colors Going forward: La
Slide 15: Going forward: Develop sales in new regions
Going forward: Develop sales in new regions Move East but where? Criteria • Population forecast • Building trend • New household creation • Future housing starts • Median home price • Average household income 15
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