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Adelaide Brighton Ltd
Annual General Meeting
19 May 2010
Adelaide Brighton Ltd
Adelaide Brighton at a glance
Leading Australian construction materials
and lime producing group
Market shares Sales by geographical
segmentation
» No. 1 Lime
WA
» No. 1 Concrete Products
VIC
» No. 2 Cement
NSW
» No. 4 Concrete and Aggregates
QLD
1,600 employees Australia wide (inc JV’S)
Market capitalisation $1.8 billion SA
S&P/ASX 150 company NT
TSR of 28% per annum over last 10 years TAS
Strong balance sheet –
gearing 19% at end 2009
2
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Performance
Year ended 31 December 200 2008 Change
$m $m %
Revenue 987.2 1,022.4 (3.4)
EBITA 242.1 245.9 (1.5)
EBIT 185.3 189.1 (2.0)
PBT 168.6 155.3 8.6
NPAT attributable to members 123.1 120.8 2.0
Cents Cents
EPS 20.4 22.2 (8.2)
Final dividend 8.0 8.5
Full year dividend 13.5 15.0
3
Shareholder returns
Payout ratio consistent
with prior guidance
EPS decline due to equity
raising
Cents %
4
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Total shareholder returns
A decade long transformation into
national construction materials S&P/ASX 200 Index TSR ranking
supplier and the leading supplier of 1 July 2001 to 31 December 2009
lime to the resources sector Newcrest Mining
Returns underpinned by the Adelaide Brighton
Origin Energy
rationalisation of capacity,
David Jones
reinvestment in cement and lime
Leighton Holdings
manufacturing and measured
downstream growth Boral
Improved cost structure and CSR
competitive position have supported James Hardie
consistent growth in shareholder
returns Source: eQuant. Includes ASX top 5 & industry peers
5
Leading market positions
A leading construction materials and • No. 1 lime producer for
lime producer for the construction and
minerals processing industries
#1 the mineral processing
industry
Number 1 lime manufacturer positioned • No. 2 cement and clinker
in key resources markets
A leading cement supplier with access to
#2 supplier to the Australian
construction industry
major construction markets; healthy • No. 1 cement and clinker
regional presence #1 importer with unmatched
route to market
Number 1 cement importer with
unmatched supply network
Strategic aggregates and premixed #4 • No. 4 market share in
concrete and aggregates
concrete position
Number 1 national market share in
concrete products
#1 • No. 1 national market
share in concrete products
6
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Cement
2009 Australian cement and concrete
market declined 15%
ABL cement sales down11%
Cement price increases recover
inflationary cost pressures
Increased demand from mining an
resources
Import Parity Pricing – constrains
potential for price increases
2010 production expected to continue at
capacity
Management of increased energy costs
7
Lime
Lime sales volumes level in 2009
through continued growth in alumina
and gold sectors
Lime kilns at Munster, Angaston and
Mataranka operated at full capacity
Flexibility and cost structure of our
leadership position in lime is a
competitive advantage
Lime price increases recover
inflationary cost pressures
8
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Accolade II – Klein Point SA
Risk management plans implemented
Successful management of alternate limestone supply – no loss in output
Financial impact minimised by insurance cover
by
Concrete and Aggregates
Demand for concrete in 2009 was down about 15%
Weaker sales across all of Hy-Tec’s markets in South East Queensland,
Sydney and Melbourne
Average prices for concrete
increased in line with inflation
Aggregate prices were,
on average, better than inflation
Ongoing management of
mix costs and asset utilisation
Continued growth in aggregates volumes assisted by road works in Blue
Mountains and Port Macquarie regions
10
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Concrete Products
Successful merger of C&M Brick and
Hanson Building Products under the
Adbri Masonry brand
Strength in Victoria, Tasmania and
South Australia markets
Weakness in New South Wales and
Queensland
$4.4 million EBIT in second half 2009
shifts to match market demand
11
Joint ventures
Combined $27.6 million net profit
contribution
Weaker cement demand in Queensland
Pricing pressure from new entrant in
Queensland
ICL maintained earnings despite lower
demand in Victoria and New South Wales
Mawsons increased earnings through
demand from mining and infrastructure
sectors in northern Victoria
12
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Consistent long term strategy
Focused and relevant vertical integration
» Continued selective expansion of downstream to underpin cement asset
utilisation and drive returns through the value chain
» Fully vertically integrated position in New South Wales
Evaluating lime capacity expansion to meet resource sector demand
» Re-evaluating lime capacity expansion and $30 million phased investment in
Munster assets over next two years – improve plant throughput
» Plans for $40 million expansion Mataranka NT assets – additional 50 kt per
annum to service growing resource sector demand
Cost reduction and operational improvement
» Continued focus on improved operating efficiency, returns and sustainability
13
Outlook
Debt facilities total $520 million – $310 million matures 30 June 2010 and
$210 million matures 30 June 2011. Debt refinancing well progressed
Strong A$ positive impact on import profitability, but may constrain price
increases
Threat of small scale opportunistic lime imports in Western Australia
Cost pressures continue, particularly in energy
Changes to tax system created element uncertainly to long term outlook in
resources
Emissions Trading Scheme postponed – climate change remains key focus
for Adelaide Brighton
Focus on energy use efficiency
14
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Outlook
Resource and infrastructure projects providing strong demand in Adelaide
Brighton’s key markets of South Australia and Western Australia
Cement demand stronger compared to 2009
Anticipate concrete demand to be similar to 2009
2010 lime volume demand is predicted to be level to marginally to be
higher than 2009
On this basis Adelaide Brighton expects 2010 net profit after tax
to be higher than 2009
15
Major construction materials producer
Concrete & Aggregates Cement & Lime Concrete Products
Joint Ventures Joint Ventures Joint Ventures
Revenue 16% Revenue 72% Revenue 12%
16
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Resolution 2
Re-election of GF Pettigrew
%
FOR 63.37
OPEN 36.47
AGAINST 0.16
Adelaide Brighton Ltd
Annual General Meeting
19 May 2010
Adelaide Brighton Ltd
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Resolution 3
Non-executive Director Remuneration
% (1)
FOR 97.62
OPEN 0.88
AGAINST 1.50
(1) Excludes votes unable to be cast by Directors and their associates pursuant to
ASX Listing Rules
Adelaide Brighton Ltd
Annual General Meeting
19 May 2010
Adelaide Brighton Ltd
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Resolution 4
Issue of Awards to the Managing Director
%
FOR 61.01
OPEN 36.51
AGAINST 2.48
Adelaide Brighton Ltd
Annual General Meeting
19 May 2010
Adelaide Brighton Ltd
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
Resolution 5
Adoption of Remuneration Report
%
FOR 59.68
OPEN 36.55
AGAINST 3.77
Adelaide Brighton Ltd
Annual General Meeting
19 May 2010
Adelaide Brighton Ltd
Adelaide Brighton Ltd – Annual General Meeting 19 May 2010
