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Microsoft PowerPoint - 2009 06 26 Boral CRB Site Tour Presentation

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Microsoft PowerPoint - 2009 06 26 Boral CRB Site Tour Presentation Powered By Docstoc
					    Boral
    Construction Related Businesses




Warren Davison                               Sydney Site Tour 26 June 2009




Boral’s CRB division consists of four businesses
             Boral Precast              Formwork & Scaffolding (BFS)




              De Martin & Gasparini           Dowell Windows
              (DMG; concrete placing)




Sydney Site Tour 26 June 2009                                            2
CRB is a diverse portfolio characterised by a large
workforce with a substantial proportion of contractors



              Precast                      BFS                   DMG                  Dowell             CRB




Total
                    224                      463                      322                   871           1,880
Workforce1

Key
                 Site panel            Scaffold               Concreter,             Transport,
Contractor       erection              erection and           steel fixers           services and
Activities                             dismantle              form workers           site glazing


 1.As at March 2009, includes ~1,340 employees and ~540 contractors


Sydney Site Tour 26 June 2009                                                                               3




We continue to improve CRB’s contractor and employee
safety performance
    Strengthening the safety culture through leadership and targeted behavioural
    change programs
    Subcontractor safety management programs
    Consistent application of Boral process and procedures
    Strengthening audit processes
         25                   LTIFR1 - FY03 TO FY09 YTD

         20                                     Contractors


         15

                  Employees                        Overall CRB
         10


          5


          0
                     FY03          FY04          FY05          FY06          FY07           FY08    Mar 09 YTD

 1. Lost Time Injury Frequency Rate per 1 million hours worked.Excludes Precast business.



Sydney Site Tour 26 June 2009                                                                               4
 CRB operates across all market segments with national
 coverage….

  Key CRB Sites




        Precast

       Formwork & Scaffolding

       Windows

       Concrete placing



Sydney Site Tour 26 June 2009                                                                                  5




 … pulling through revenue for other Boral businesses

                                          Market Segment
                                           Multi-residential




         CRB                                                                                Boral Product
                                                                            Engineering
                                                               Commercial




         Business                                                                           pull-through
                                Housing




         Precast                                                                              Concrete

         Formwork &
                                                                                          Plywood and Timber
         Scaffolding
         DMG                                                                                  Concrete

         Dowell




Sydney Site Tour 26 June 2009                                                                                  6
CRB businesses have strong market positions


                                  Estimated               Key             Variable Costs     Fixed
     CRB Business               National Market         Material
                                                                        Materials   Other    Costs
                                    Position            Inputs
                                                        Concrete
    Precast                              1                                Low        High    Medium
                                                         Steel

    Formwork &                                           Ply and
                                         3                                Low        Low     Medium
    Scaffolding                                          Timber


    DMG1                                 1              Concrete          High       High     Low

                                                       Aluminium
    Dowell Windows                       1                                High      Medium    Low
                                                         Glass



1. Sydney market only


Sydney Site Tour 26 June 2009                                                                        7




CRB is focused on improving efficiency and matching
resources to demand

                         CRB Employees1 FY07 TO FY09 YTD


                                             ~15%




                         FY07                 FY08               YTD FY09


      CRB has a range of cost reduction plans to further improve its position


1. Excludes contractors; FY09 YTD is for the period ending March 2009


Sydney Site Tour 26 June 2009                                                                        8
Boral Precast consists of the Girotto (East Coast) and
Gocrete (WA) businesses

 ~200 employees
 5 manufacturing sites




                                       Baseline Alexandria project




      Gocrete
      Girotto
                                       Girotto Sydney Site


Sydney Site Tour 26 June 2009                                        9




Precast project evolution – Factory to Townhouse




                                          Factory Unit Development Sydney




                                    Magenta Shores Townhouse Development


Sydney Site Tour 26 June 2009                                        10
 The Australian precast market has evolved from initial
 penetration in industrial buildings to more recent activity
 in single dwelling homes


                                         Precast Market Evolution

Precast           Mature               Growth              Activity              Activity             Activity
Penetration                           continuing         increasing            increasing             starting



                                                                                Niche                Single
                Industrial
Segment                               Multi-Units        Multi-Units            Single              Dwelling
                  Tilt-up
                                       High rise          Low rise             Dwelling              Project
                to Precast
                                                                                                     Homes




Sydney Site Tour 26 June 2009                                                                                11




Gocrete (WA) automated plant has been successfully
commissioned




                                  Gocrete Automated Plant - Steel and fitting placement




 Gocrete Automated Plant – Concrete                            Gocrete Automated Plant - Finishing station


Sydney Site Tour 26 June 2009                                                                                12
Boral is the #3 player in Scaffolding nationally

                                     Scaffolding is a hire business with on
                                     site labour, erecting and dismantling
                                     Formwork is a hire business with
                                     additional engineering design
                                     expertise required
                                     ~220 employees
                                     18 branches:
                                         14 Scaffolding & 4 Formwork




        Scaffolding branch
        Formwork branch




 Sydney Site Tour 26 June 2009                                      13




Significant unit cost reductions associated with consolidation of
operating sites, focusing on dedicated formwork & scaffolding
locations
       2007 – Over 35 branches             2009 – 18 branches




                                      Scaffolding branch
      Formwork/Scaffolding branch     Formwork branch




 Sydney Site Tour 26 June 2009                                      14
De Martin & Gasparini (DMG) is the leader in concrete
placement projects in the Sydney Metro area

     Proven capability and track record on major projects
     In operation over 50 years
     Industry leading safety performance




  Sydney International Airport Multi-level Carpark   Multiplex Lumiere Apartments Sydney


Sydney Site Tour 26 June 2009                                                              15




Bligh Street development is an example of DMG pulling
through Boral products
  Grocon is building Sydney’s first high rise 6
  star Green Star building (2011)
      Double skin facade with integrated energy
      control
      Natural air and light through central atrium
      Green star concrete (40,000 m3) over 29
      floor plates
      DMG is concrete supply and place                                   Bligh Street Site works
      contractor
      Concrete from Concrite
          Reduced cement using flyash and slag
         Technically challenging project
      Clayton Utz main tenant


                                                                  Artists impressions


Sydney Site Tour 26 June 2009                                                              16
DMG has a proven track record in complex construction
projects in Sydney


  Other key construction projects in Sydney from
  DMG include:
     Bennelong Apartments (1998)
     Sydney Olympic Stadium (1999)
     Warringah Mall (2000)
     Westfield Bondi Junction (2004)
     Bankstown Square Shopping Centre (2005)
     Top Ryde Shopping Centre (2009)
     Bligh Street Office development (2009)
     Darling Walk (2009)
  DMG has a range of longstanding relationships
  with major Sydney constructors


                                                   Top Ryde Shopping Centre project for Bovis Lend Lease




Sydney Site Tour 26 June 2009                                                                17




Dowell is the leading aluminium windows manufacturer and
supplier to Australia’s new house market


                                                      ~700 employees
                                                      14 manufacturing sites




   Windows manufacturing sites
       Aluminium
       Timber/Aluminium                                                    Windows assembly plant
       Plastics



Sydney Site Tour 26 June 2009                                                                18
 Dowell’s key focus is on the new dwellings segment with
 limited exposure to the alterations and additions market

      Focused on achieving a low cost position supplying major builders
      A strong management team in place
      Market share has been increasing to a clear leadership position in the new
      dwelling market

                New Dwellings                                        Alterations & Additions
                                                                                 5%
                                   20%
       21%
                                                                                         45%
                                                               50%
                                     59%
                                                   Boral

                                                   Other Majors

                                                   Local Players
Source: Management Assessment


 Sydney Site Tour 26 June 2009                                                                     19




 Government regulatory standards for House Energy
 Ratings (HERs) will drive the uptake of energy efficient
 windows in new dwellings


    Announced Policy changes

          Upgraded to 5 star* energy standard in 2006
                                                                                 Only 10% of houses in
          Minimum ACT, Victoria & Tasmania to be 6                               Australia have energy
          star in 2009
                                                                                 efficient glass
          Victorian builders offering 7 star design                              compared to 90% of
                                                                                 houses in USA
          Building codes will be updated to require 6
          star housing in all states from May 20111




   1. COAG National Strategy on Energy Efficiency – May 2009


 Sydney Site Tour 26 June 2009                                                                     20
   An examination of US experience provides good insights
   into likely product developments in Australia

     The climate zones in Australia match the key areas in the US




                                                                                                             Brisbane
       Tampa                                             Los Angeles


                                                                                                              Sydney



                                                                       San Francisco                       Melbourne



                                                                                         Cooling climate

                                                                                         Mixed climate
                                                                                         Heating climate

    Illustrative only



    Sydney Site Tour 26 June 2009                                                                            21




   Windows product demand is now showing the influence
   of changing energy regulations especially double glazing

             Proportion of double glazed windows installed in
                           residential construction
       %
                                                                                       Double glazing
     25
                                                                                       requirements are
     20
                                                                      Victoria         strongest in Victoria and
                                                                                       Southern NSW as State
     15                                                                                Governments in heating
                                                                                       climates are most actively
     10                                                                                lifting standards
                                                                      Australia
                                                                                       Dowell with its leading
       5
                                                                                       market position is well
       0
                                                                                       positioned to benefit
                  FY05           FY06             FY07             FY08




Source: Management Assessment of BIS Shrapnel Building Materials and Fitting Studies


    Sydney Site Tour 26 June 2009                                                                            22
Dowell is the #3 window supplier to the new house market
in NSW


    5 manufacturing sites in NSW
       Sydney, Newcastle, Nowra,
       Queanbeyan and Unanderra

    ~ 120 employees in NSW

    Boral manufactures a complete range of
    aluminium windows and doors, designed
    to service the new home market

    Major competitors in NSW are:
         Stegbar
         Bradnams
         Trend Windows
                                                                            Windows finished product




Sydney Site Tour 26 June 2009                                                               23




Going forward, precast products expected to grow with
increasing penetration whilst other businesses to benefit
from market recovery and cost down programs
                            Major focus areas

                            Consolidate automation
        Precast
                            Cost reduction



    Formwork and            Optimise price and utilisation across network
     Scaffolding            Further improve network cost position



          DMG               Maintain market position in Sydney




        Dowell              Further improve cost position
       Windows              Position product offering to evolving energy regulatory
                            environment


Sydney Site Tour 26 June 2009                                                               24

				
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Description: Microsoft PowerPoint - 2009 06 26 Boral CRB Site Tour Presentation