Chairman’s Address Ken Mossacquia-stg.boral.com/.../081024-2008AGM_Slides_Complete.pdf · 2017. 10. 20. · Final dividend 17 cents Total dividend 34 cents Boral Annual General

1

Boral Annual General Meeting 2008 1


Chairman’s AddressKen Moss

2


2008 was a particularly challenging year due to several extraordinary external factors

Significant deterioration in US housing activity

Protracted Australian housing downturn especially in NSW

Dramatic increase in energy and other input costs

Global credit crisis

Government progresses emissions trading scheme

1

2

3

4

5

6

7

Challenging conditions in Asia for construction materials

Demand for concrete in Australia at record levels


FY2008 financial results

$688mto10%EBITDA1

$5.2bnto6%Sales

$243mto19% Profit after tax

to $247m17%Underlying profit after tax1

1. Excluding goodwill and tax provision adjustment of ($31.9m) and $28.1m respectively

3


A solid lift in Australian EBITDA ( $52m) was offset by a large decline in offshore EBITDA ( $123m)

151 129

21

168

11 16

454489

EBITDA (A$m)

Construction Materials

AsiaUSABuilding Products

$17m (11%) $118m (91%) $5m (22%)$35m (8%)

FY2007 FY2008


FY2008 financial results

from

from

from

from

from

52%to50%Gearing (net debt / equity)

8.5%to10.0%Return on equity1

41.4cto50.0cUnderlying EPS1

$582mto$482mOperating cash flow

to 10.1%11.9%Return on funds employed1

1. Excluding goodwill and tax provision adjustment of ($31.9m) and $28.1m respectively

4


Dividend returns continued to be solid and fully franked

remains at 100%

from 68% to 83%Dividend payout ratio

Franking level

49 centsGross-up dividend

17 centsInterim dividend

17 centsFinal dividend

34 centsTotal dividend


0

50

100150

200250

300

350

400

450

Feb-

00

Aug

-00

Feb-

01

Aug

-01

Feb-

02

Aug

-02

Feb-

03

Aug

-03

Feb-

04

Aug

-04

Feb-

05

Aug

-05

Feb-

06

Aug

-06

Feb-

07

Aug

-07

Feb-

08

Aug

-08

Indexed

Boral

ASX100

Relative share price performance index

5


Leadership &People Management


Boral’s safety performance has continued to improve

1. Lost Time Injury Frequency Rate per 1 million hours worked

2.5

9

5 54.5

3.1

5.1

4.2

2.8

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

% Hours lost

0.24

0.150.17

0.150.16

0.11 0.110.09

0.08

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

Lost time injury frequency rate (LTIFR)1

6



Boral’s Sustainability Priorities are broad

Health, safety and wellbeingEmployee and labour relationCommunications, awareness and training

Energy conservation and climate changeWater conservation and climate changeWaste and resource management, recycling and re-useLand protection, remediation and rehabilitation Environment and ecosystem protection

Community relations and engagementBusiness ethics and corporate governanceExternal relations and communications

Strategic sourcing and supply chainSales and marketing

Hum

an R

esou

rces

Envi

ronm

ent

Soci

al R

espo

nsib

ility

Mar

ketp

lace

& S

uppl

y C

hain

7


The Board & Corporate Governance


Managing Director’s AddressRod Pearse

8


2008 was a particularly challenging year due to several extraordinary external factors

Significant deterioration in US housing activity

Protracted Australian housing downturn especially in NSW

Dramatic increase in energy and other input costs

Global credit crisis

Government progresses emissions trading scheme

1

2

3

4

5

6

7

Challenging conditions in Asia for construction materials

Demand for concrete in Australia at record levels


Whilst sales lifted 6% and remains at high levels, EBITDA was down 10%

5,199

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,500

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

688

0

100

200

300

400

500

600

700

800

900

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

Sales revenueA$m

EBITDAA$m

1. Excluding significant items.Note - FY05 result onward has been adjusted for adoption of A-IFRS

1

9


1. Seasonally adjusted annualised monthly starts from US Census

Total US dwelling starts (‘000)1

0

200

400

600800

1,0001,200

1,400

1,600

1,8002,000

2,200

2,4002,600

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Total Housing Starts

Single Family Housing Starts

US dwelling starts will be around 40% of sustainable underlying demand this year


USA

10


Detached dwellings in NSW remain at 40 year low levels and well below underlying demand

1. South Australia, Tasmania, Northern Territory and ACT 2. Moving annual total, June 1984 to August 2008. Source: ABS

Building approvals for detached houses (MAT)2

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000Ju

n-84

Jun-

85

Jun-

86Ju

n-87

Jun-

88

Jun-

89Ju

n-90

Jun-

91

Jun-

92Ju

n-93

Jun-

94Ju

n-95

Jun-

96Ju

n-97

Jun-

98

Jun-

99Ju

n-00

Jun-

01

Jun-

02Ju

n-03

Jun-

04

Jun-

05Ju

n-06

Jun-

07

Jun-

08

VIC

WA

QLD

NSW

Others1


Building Products Australia

11


Construction Materials Australia


Asia

12


Member of the FTSE4Good Index

Boral is being recognised as an industry leader

Carbon Disclosure Project (CDP6) Climate Change Leader

Special Award for Corporate Governance at the 7th Australian Sustainability Awards

Storebrand Investment “Best in Class”

“Commendation for excellent report structure” inAssociation of Chartered Certified Accountants (ACCA) awards


Outlook FY2009

Australia– Dwellings at around 145,000 starts run rate in Sep quarter– Building products earnings to be lower in FY09 than FY08– Concrete, quarry & cement price increases flowing through– Construction materials earnings to be higher in FY09 than FY08– QEU earnings stronger in second half

Asia– Continued growth and competitive market conditions in Asia– FY09 earnings above FY08

USA– Continued market deterioration in Sep quarter; dwelling starts could fall to

~750,000-800,000 starts in FY09 impacting both building products and construction materials

– Despite significant cost reductions FY09 earnings to be below FY08Assuming US x-rate ~$0.70, FY09 PAT to be around $200 million; (first half earnings to be ~40% of full year earnings)

13


Ordinary Business


Financial Reports

14


Resolution 1

Adoption of Remuneration Report


Resolution 1 – Adoption of Remuneration Report

Boral’s policies relating to remuneration of key management personnel

15




Relationship between remuneration policies and the Company’s performance




Relationship between remuneration policies and the Company’s performance

Details of performance condition of elements of Boral remuneration

16


Worked example of options

$245m (6%1)Nil

17


% to be cast FOR the resolution** On basis open proxies in favour of Chairman of the Meeting arevoted FOR

Resolution 1 – proxy votes

174,210,568Against

10,092,918Open

123,541,273For

43.4%

Adoption of Remuneration Report


Resolution 2

Election of Director

18


Paul Rayner


Resolution 2 – proxy votes

1,205,703Against

10,281,477Open

297,176,821For

Election of Paul Rayner

% to be cast FOR the resolution** On basis open proxies in favour of Chairman of the Meeting arevoted FOR

99.6%

Documents

Chairman’s Address Ken Mossacquia-stg.boral.com/.../081024-2008AGM_Slides_Complete.pdf · 2017. 10. 20. · Final dividend 17 cents Total dividend 34 cents Boral Annual General