Microsoft PowerPoint - 2009 06 26 Boral CRB Site Tour Presentation by lindayy


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    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)

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CRB is a diverse portfolio characterised by a large
workforce with a substantial proportion of contractors

              Precast                      BFS                   DMG                  Dowell             CRB

                    224                      463                      322                   871           1,880

                 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

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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


                  Employees                        Overall CRB


                     FY03          FY04          FY05          FY06          FY07           FY08    Mar 09 YTD

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

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 CRB operates across all market segments with national

  Key CRB Sites


       Formwork & Scaffolding


       Concrete placing

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 … pulling through revenue for other Boral businesses

                                          Market Segment

         CRB                                                                                Boral Product

         Business                                                                           pull-through

         Precast                                                                              Concrete

         Formwork &
                                                                                          Plywood and Timber
         DMG                                                                                  Concrete


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CRB businesses have strong market positions

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

    Formwork &                                           Ply and
                                         3                                Low        Low     Medium
    Scaffolding                                          Timber

    DMG1                                 1              Concrete          High       High     Low

    Dowell Windows                       1                                High      Medium    Low

1. Sydney market only

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CRB is focused on improving efficiency and matching
resources to demand

                         CRB Employees1 FY07 TO FY09 YTD


                         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

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Boral Precast consists of the Girotto (East Coast) and
Gocrete (WA) businesses

 ~200 employees
 5 manufacturing sites

                                       Baseline Alexandria project

                                       Girotto Sydney Site

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Precast project evolution – Factory to Townhouse

                                          Factory Unit Development Sydney

                                    Magenta Shores Townhouse Development

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 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
Segment                               Multi-Units        Multi-Units            Single              Dwelling
                                       High rise          Low rise             Dwelling              Project
                to Precast

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Gocrete (WA) automated plant has been successfully

                                  Gocrete Automated Plant - Steel and fitting placement

 Gocrete Automated Plant – Concrete                            Gocrete Automated Plant - Finishing station

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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

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

                                      Scaffolding branch
      Formwork/Scaffolding branch     Formwork branch

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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

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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
      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
      Concrete from Concrite
          Reduced cement using flyash and slag
         Technically challenging project
      Clayton Utz main tenant

                                                                  Artists impressions

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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

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

                                                      ~700 employees
                                                      14 manufacturing sites

   Windows manufacturing sites
       Timber/Aluminium                                                    Windows assembly plant

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 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

                                                   Other Majors

                                                   Local Players
Source: Management Assessment

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 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

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   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

       Tampa                                             Los Angeles


                                                                       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
                                                                                       requirements are
                                                                      Victoria         strongest in Victoria and
                                                                                       Southern NSW as State
     15                                                                                Governments in heating
                                                                                       climates are most actively
     10                                                                                lifting standards
                                                                                       Dowell with its leading
                                                                                       market position is well
                                                                                       positioned to benefit
                  FY05           FY06             FY07             FY08

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

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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:
         Trend Windows
                                                                            Windows finished product

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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
                            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

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