2015 AGM slides ASX final - csr.com.au · Source: ABS - Pipeline includes dwellin gs approved and under construction, but not yet completed ... LME aluminium price Ingot premium A$

ANNUAL GENERALMEETING14 JULY 2015

CSR LIMITED

CHAIRMAN’SADDRESS

CSR LIMITED PRESENTATION 20151

Improving returns

1. YEM11 interim dividend restated for the 3:1 share consolidation completed on 3 March 2011 and excludes special dividend of 9.1 cents.2. ROFE is calculated as EBIT before significant items for the 12 months to 31 March divided by average funds employed which excludes

cash, tax balances and certain other non-trading assets and liabilities as at 31 March.3

Net profit before sig items (A$m)

Return on funds employed (%)

EPS before sig items (cents)

Dividends (cents)

20.4 20.6

8.2

16.0

29.1

YEM11 YEM12 YEM13 YEM14 YEM15

14.313.0

5.1

10.0

20.0


13.5

10.4

5.0

9.9

18.4


1

2

103.4 104.1

41.4

80.5

146.4


CSR LIMITED PRESENTATION 2015

2MANAGING DIRECTOR’SREPORT

Strong performance across the group

5

REVENUE $2.0bn

16%

EBIT1

$235.4m

87%

NPAT1

$146.5m

82%

STATUTORY NET PROFIT $125.5m

43% 82%

FULL YEAR DIVIDEND 20c

100%

EARNINGS PER SHARE1 29.1c

1 EBIT, net profit and earnings per share are all before significant items. They are non-IFRS measures and are used internally by management to assess the performance of the business and have been extracted or derived from CSR’s financial statements for the year ended 31 March 2015. All comparisons are to the year ended 31 March 2014 unless otherwise stated.

6

92.6

120.9EBIT A$M

YEM14 YEM15

51.9

104.3EBIT A$m

YEM14 YEM15

17.3

30.2

EBIT A$m

YEM14 YEM15

EBIT1 improved across all divisions

Building Products

EBIT up 31%

Earnings growth across all businesses

Volume, pricing and product mix improving margins

Viridian

Aluminium Property

Earnings ahead of expectations following pricing initiatives and higher volumes

Operating efficiencies drove profit improvement

13% increase in realised aluminium price

Volume up 3.5% following improved smelter performance

Settlement of three major transactions

31%

101% 75%

(14.9)

3.1EBIT A$m

YEM14 YEM15

1. EBIT before significant items.

0

1

2

3

4

5

6


Per million work hours

43% improvement

0

5

10

15

20

25

30


Per million work hours

0

200000

400000

600000

800000

1000000

1200000


Kilo

litres

25% improvement

Improving safety and environmental performance

50% improvement

Environmental data reported for the period of 1 July to 30 June for the respective years to be consistent with the National Greenhouse and Energy Reporting Scheme. 7

0

200,000

400,000

600,000

800,000


Per To

nnes of CO2‐e

27% improvement

Lost time injury frequency rate Total recordable injury frequency rate

Greenhouse gas emissionsWater use

Delivering on our strategy

8

• Expanded leadership development programs

• Viridian returned to profitability

• Launched Boral CSR Bricks JV

Strengthen and invest

• Launched Gyprock Optimised Core

• Production facility for CSR Velocity pre-fabricated walling system underway

Smarter, faster, easier

• Expanding AFS Rediwall production capacity

• Hebel product development to increase use in walls, flooring and other structural elements

Adapting to changing lifestyles

• Expansion of Bradford offering (Martini polyester, acoustic, ventilation, PIR foams and construction fabric)

Comfort and energy efficiency

• CSR Connect online portal upgrade

• Accelerated investment in digital services for customers

Customers

JV Sites –capacity by state (million SBE)

• Combined annual revenue of ~$270 m (as of December 2014)

– 12 manufacturing operations (including mothballed sites)

– Around 570 employees

• Integration on track

• Initial overhead savings of $7-$10m following integration

• Longer term, opportunities to improve operational efficiencies and release high value land assets without impacting product range

South Australia

SiteOperating capacity

Mothball.

Golden Grove 40 ‐‐‐

Queensland


Mothball.

DarraOxley

5690

‐‐‐‐‐‐

`

New South Wales


Mothball.

BringellyBadgery’s CreekCecil ParkSchofieldsHorsley ParkBathurst

65‐‐‐904715‐‐‐

‐‐‐63‐‐‐‐‐‐‐‐‐25

Victoria


Mothball.

ScoresbyThomastownAlbury

315529

‐‐‐‐‐‐‐‐‐

Launched Boral CSR Bricks JV

9

• Stronger - more robust with better breaking strength for improved handling and installed performance

• Lighter- easier to lift for better sheet manoeuvrability and improved flex

• Improved face appearance - for a more uniform and professional finish

• Improved overall workability – crisper score and snap

• Designed with glass fibre reinforcement – to span 600mm centres

10

Gyprock Optimised Core Product Innovation

AFS walling systems capturing growing demand

• A leader in load bearing permanent formwork walling solutions

• Faster and less complex building solutions

– Increased speed of construction

– Lower labour costs and crane requirements

• Logicwall® fibre cement based permanent formwork system:

– Scalable production facility at Goulburn, NSW to meet growing demand in multi-residential market

– Over 1,500 projects completed to date

– CSR Cemintel current supplier of fibre cement products

• Rediwall® polymer-based (PVC) permanent formwork system

– Concrete walling system that is water resistant

– Used in basement and retaining walls in multi-residential and commercial applications

OUTLOOKCSR LIMITED PRESENTATION 2015

3

20,000

40,000

60,000

80,000

100,000

120,000

140,000

pipeline Housing approvals Housing starts Housing completions

20,000

40,000

60,000

80,000

100,000

120,000

140,000

pipeline Other res approvals Other res starts Other res completions

13

Multi-residential (MAT) Detached (MAT)

Pipeline remains strong in residential construction

Source: ABS - Pipeline includes dwellings approved and under construction, but not yet completed (ABS cat 8752)

Detached starts running ahead of completions

Multi-res pipeline continues to grow as NSW and QLD add to significant backlog in VIC

1500

1700

1900

2100

2300

2500

2700

2900

3100

1500

1700

1900

2100

2300

2500

2700

2900

3100

A$ per tonee

(green line)

US$ per tonne (shaded

lines)

LME aluminium price Ingot premium A$ all in price

Aluminium market – decline in ingot premiums

14

GAF aluminium hedge book (as of 30 June 2015)

Aluminium (all in) price under pressure

Source: Bloomberg

YEM16

Average hedged aluminium price A$ per tonne (excludes premiums)

A$2,311

% of net aluminium exposure hedged 59%

YEM17

Average hedged aluminium price A$ per tonne (excludes premiums)

A$2,499

% of net aluminium exposure hedged 21%

A$ All‐in price1‐Jul‐14 A$2,413 p/t

1‐Jul‐15 A$2,364 p/t

15

Outlook for year ending 31 March 2016 (YEM16)

Building approvals for both detached and multi‐residential housing remain strong

Expected to lead to increased demand for CSR products

From 1 May 2015, results will include the consolidated earnings from Bricks JV

Building Products

Aluminium

Earnings are always subject to timing of transactions

Boral CSR Bricks JV provides additional development opportunities of selected high value land assets over the next 5‐10 years.

Property

59% of net sales for YEM16 currently hedged at an average price of A$2,311 per tonne (before premiums).

Q2 YEM16 Platts Main Japanese Port premiums down to ~US$100 per tonne

Viridian Targeting new opportunities for revenue growth – particularly in residential performance and commercial and architectural design markets

Modest levels of capital and customer service initiatives should be more than offset by improved market activity and growth in higher margin products.

Progressing strategy to invest in growth opportunities that accelerate the construction process while improving the comfort and performance of homes and buildings

Group

Documents

2015 AGM slides ASX final - csr.com.au · Source: ABS - Pipeline includes dwellin gs approved and under construction, but not yet completed ... LME aluminium price Ingot premium A$