2007 AGM Presentation Final slides - Boralacquia-stg.boral.com/.../field_document/071029-2007...5 Boral Annual General Meeting 2007 0 50 100 150 200 250 300 350 400 450 Feb-00 Aug-00

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Boral LimitedAnnual General Meeting 2007

Boral Annual General Meeting 2007

Chairman’s AddressKen Moss

2


2007 result impacted by declines in US & Australian building products housing related earnings

50%tofrom 57%Gearing (debt / equity)

$482mtofrom $449mOperating cash flow

$298mto18% Net profit

$4.9bnto3%Sales

11.9%tofrom 14.2%Return on funds employed

to 10.0%from 13.2%Return on equity


Detached dwellings in NSW remain at 30 year low levels and well below underlying demand

1. Source: ABS, August 2007 2. Source: BIS Shrapnel October 2007 FY07-FY12 estimates of underlying demand3. Adelaide, Darwin, Hobart and Canberra.

Building approvals for detached houses1

(MAT, July 1996 to August 2007)

0

5,000

10,000

15,000

20,000

25,000

30,000

Jul-9

6

Jul-9

7

Jul-9

8

Jul-9

9

Jul-0

0

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

MelbournePerthBrisbane

SydneyOthers3

Dwelling starts1 as % underlying demand2

(Year ended June 2007)

83%

91%

100%

103%

83%

60%

Australia

New South Wales

Queensland

Victoria

South Australia

Western Australia

3


NSW dwellings remained particularly weak

Source: ABS Original data series

Percentage change in dwellings approvals and non-dwellings value of work approved – FY2007 vs FY2006

-10%

1%

14%

2%

-4%

1% 4%

-9%

15%

-2%

-25%

31%

11% 13%12%7%8%

-7%

Detached Multi-dwellings Non-dwellings

Australia NSW Victoria Queensland WA SA


0200400600800

1,0001,2001,4001,6001,8002,0002,2002,400

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007The US housing market has experienced a rapid decline

1. Seasonally adjusted annualised monthly permits from US Census2. Joint Center for Housing Studies of Harvard University

Underlying demand 2

Total US housing permits (‘000 building permits)1

4


50%tofrom 57%Gearing (debt / equity)

$482mtofrom $449mOperating cash flow

$298mto18% Net profit

$4.9bnto3%Sales

11.9%tofrom 14.2%Return on funds employed

to 10.0%from 13.2%Return on equity

2007 result impacted by declines in US & Australian building products housing related earnings


Continued solid dividend returns with maximum franking benefits

68%tofrom 55%Dividend payout ratio

remains at 100%Franking level

49 centsGross-up dividend

17 centsInterim dividend

17 centsFinal dividend

34 centsTotal dividend

5


0

50

100150

200250

300

350

400

450Fe

b-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

Indexed

Boral

ASX100

Relative share price performance index


HEALTH AND SAFETY

RESOURCING FOR GROWTHWASTE MANAGEMENT

ENERGY AND GREENHOUSE

GAS EMISSIONS

WATER CONSERVATION

Boral’s key sustainability priorities are common to all divisions

6


2007 Sustainability Report


• Member of the FTSE4Good Index

• Carbon Disclosure Project (CDP5) Climate Change Leader

• Gold Star performer in the Corporate Responsiblity Index

• Storebrand Investment “Best in Class”

Boral is being recognised as an industry leader

7


Boral’s safety performance has continued to improve

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

2.8

9.0 9.0

5.0 5.1

4.2

5.04.5

3.1

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

% Hours lost

0.250.24

0.150.17

0.150.16

0.11 0.110.09

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Lost time injury frequency rate (LTIFR)1


The Board & Corporate Governance

8


Leadership &People Management


Managing Director’s AddressRod Pearse

9


Sales & EBITDA remain at high levels

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

762

0

100

200

300

400

500

600

700

800

900

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Sales revenueA$m

EBITDAA$m

FY05 result onward has been adjusted for adoption of A-IFRS

4,909


Construction Materials Australia

10


Building Products Australia


USA

11


Asia


USABrick plants:

Union CityTerre Haute

Clay roof tiles plants:Trinidad*Ione

Concrete roof tiles plants:

Florida*Nevada*

* 50%-owned joint venture

Growth initiatives are well positioned for market recovery and market growth

NSWBerrima Cement Mill #7Maldon Bagging Plant30% of Girotto PrecastHerons Creek TimberEngineered Flooring

QldSunstate Cement* Grinding CapacityWacol Wetcast PavingPlasterboard Plant

WAGoCrete Precast PlantMidland Brick Kiln #11

VICWaurn Ponds Cement Works Stage 2Asphalt Plants (Australia wide)

Asia Plasterboard* plants:

Vietnam South KoreaIndiaChina

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We are strengthening our construction materials position in the USA

Denver Concrete & Quarries• Acquired two businesses for US$78m

in Sep 2004 to create #3 market position• 8 concrete batching plants• 2 sand and 2 gravel pits• 2 masonry plants• Exceeded US$13m EBITDA target for CY06• Strong price & margin management

Oklahoma Concrete & Quarries• Acquired Schwarz & AMI for

US$80m in Aug 2007• #2 market position• 18 concrete batching plants• 1 limestone quarry, 5 sand mines• EBITDA target of

US$12m for FY08(10 months)

• Strong synergistic opportunities

SC

NC

GA

ALMS

LA

AR

IL

TX

OK

KSIN

MOVA

TN

KY

OH

MI

FL

WVMD

AZ

CA

NV

OR

CO

Boral Fly Ash states

Concrete & Quarry (& Fly Ash) states

BMTI Fly Ash production


1997

2007

• Boral, as part of Cement Industry (CIF) sets Greenhouse Challenge Plus (GCP) targets with Federal Government

• Boral receives SEDA Energy Smart Business gold award

• Boral signs up to GCP Program as stand-alone company

• Boral’s 20 largest sites participating in Federal Government’s Energy Efficiency Opportunities program

• Boral participates in Carbon Disclosure Project and recognised as a Climate Change Leader

• Internal Climate Change Technical Working Group established

• Boral becomes first company to create Large User Abatement Certificates under NSW GHG Reduction Scheme (GGAS)

• Firming up historical base year data, developing abatement cost curve and striving to reduce emissions / unit basis

Boral has actively participated in voluntary Energy and Greenhouse Gas Emission schemes for 10 years

13


Outlook FY2008

Australia– September quarter ahead of expectation– Continued strength in non-dwelling & infrastructure activity– Concrete, quarry & cement price increases– Construction materials earnings to increase– Building products earnings broadly flat

Asia– Continued market growth and competitive market conditions

USA– September quarter building products below expectation– Lower brick & roof tile volumes & earnings– Increased construction materials earnings from the Schwarz / Arbuckle acquisitions– Housing starts could fall to ~1.1 million starts

If US starts fall to 1.1 million and AUD/US exchange rate remains ~$0.90, Boral’s profit after tax in the first half and the full year will be ~15% below last year


Ordinary Business

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Financial Reports


Resolution 1

Adoption of Remuneration Report

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Resolution 1 – Adoption of Remuneration Report

Boral’s policies relating to remuneration




Relationship between remuneration policies & the Company’s performance

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Details of performance condition or hurdle for long term incentives


Worked example of options

$1,452m (33%1)Nil<50th percentile16% pa$9.70

$7.5m

$2.2m

Nil

Value of CEO’s options

pre-tax

$3,580m (82%1)75th percentile28% pa$13.30

$2,112m (48%1)50th percentile20% pa$10.80

$838m (19%1)<50th percentile12% pa$8.70

Increase in market

capitalisation

Performance relative to ASX100

TSR achieved

Share price after 3 yrs

Assumptions: $7.32 share price at grant; 34 cents dividend maintained; options exercised after 3 years; performance relative to ASX 100 is estimated1. Percentage increase from date of grant on 6 November 2006

Based on a nominal grant of 1,250,000 options in 2006/07 year

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Details of performance condition or hurdle for long term incentives

Remuneration details for CEO and key management personnel


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

Resolution 1 – proxy votes

10,392,952Against

10,682,501Open

309,059,149For

96.2%

Adoption of Remuneration Report

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Resolutions 2 to 5

Election of Directors


Richard Longes

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763,706Against

10,786,926Open

319,468,352For

Re-elect Richard Longes


99.1%


Roland Williams, CBE

20



1,094,330Against

10,811,225Open

319,126,080For

Re-elect Roland Williams, CBE


99.0%


Brian Clark

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479,205Against

10,822,701Open

319,671,583For

Re-elect Brian Clark


99.2%


Bob Every

22



414,625Against

10,834,009Open

319,714,603For

Re-elect Bob Every


99.2%


Special Business

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Resolution 6

Retirement of Directors


Resolution 6 – retirement of directors

Resolution will bring Constitution into line with ASX Listing Rules and require that a Director must not hold office (without re-election) past the longer of the third Annual General Meeting following the Director’s appointment or three years

Currently one third of Directors (rounded down) must retire each year and as a consequence, Directors are often required to retire only two years after being elected instead of serving the anticipated three years

At least one Director must still face election each year

24



3,250,191Against

11,561,809Open

315,500,656For

Amendment to the Constitution – Retirement of Directors


98.3%

Boral LimitedAnnual General Meeting 2007

Documents

2007 AGM Presentation Final slides - Boralacquia-stg.boral.com/.../field_document/071029-2007...5 Boral Annual General Meeting 2007 0 50 100 150 200 250 300 350 400 450 Feb-00 Aug-00