#1Boral Australia Investor Day Presentation Sydney, 31 May 2019 Agenda PRESENTATIONS and Q&A: Boral Australia: • Wayne Manners, President & CEO Boral Australia Greg Price, Executive GM, NSW & Major Projects . Brian Tasker, National GM, Property with Judy McKittrick, National Land Development Manager Boral Limited: Ross Harper, Group President Operations Ros Ng, Group President Ventures and CFO Mike Kane, CEO & Managing Director LUNCH: 12.30pm SITE VISIT to Artarmon Concrete Plant Depart -1.15pm, return ~3.30pm BORAL BORAL 2#2BORAL Boral Group: snapshot Today's investor day focuses on Boral Australia, an important part of the Boral Group A$6.1b market capitalisation1 S&P/ASX 100 company 17 countries -670 operating sites² 17,098 employees³ plus 8,700 contractors 1H FY2019 revenue by division4, % EBITDA5 A$m 35 1,056 ●Boral Australia 53 720 • USG Boral 519 556 605 645 Boral North America 12 Boral 1H FY2019 revenue4 by end-market, % 500 485 FY13 FY14 FY15 FY16 FY17 FY18 1H FY18 1H FY19 5 24 Australian RHS&B & other engineering 9 • Australian non-residential 3 Australian detached housing 14 9 • Australian multi-residential 9 • Australian alterations & additions 8 7 6 • Asia & Middle East USA single-family ◆ USA multi-family USA repair & remodel! USA non-residential ⚫ USA infrastructure • Other Full-time equivalent employees, including in joint ventures, as at 31 December 2018 1. As at 30 May 2019 2. As at 30 June 2018, adjusted for the sale of Block 3. 4. 5. 6. RHS&B: Roads, highways, subdivisions & bridges Includes Boral's 50% share of underlying revenue from USG Boral and Meridian Brick joint ventures, which are not included in Group reported revenue and excludes discontinued operations Excluding significant items Agenda BORAL BORAL New West Melbourne Concrete Plant, Vic Boral Australia overview and focus Wayne Manners Supplying a strong infrastructure segment Greg Price A reliable earnings stream from Property Brian Tasker and Judy McKittrick Boral's sustainability focus Ross Harper USG Boral strategic options update Ros Ng and Mike Kane 3#3Boral Australia is a strong, well positioned business Diversified geographic exposure increasingly focused on construction materials 1H FY19 Revenue¹ by region, % BORAL 402 operating sites³ 1. 2 3. 4. 5. 6 NSW/ACT 24 VIC/TAS/ SA • QLD • WA 25 1H FY19 Revenue¹ by business², % 2 9 Concrete & Placing 9 • Quarries Asphalt ⚫ Cement Building Products 21 ⚫ Other 12 45 47 9 1 WA 12 2 1 Quarries 75 Concrete 239 NT 1 18 1 Asphalt 43 QLD 66 1 Cement4 6 16 Bricks WA 1 SA Roof tiles 4 10 1 NSW/ACT Timber5 9 11 1 20 95 2 Masonry 3 3 4 14 9 С VIC/TAS 16 1 ~6,500 employees and ~5,000 contractors 54 1 8 Boral Australia external revenue for the 6 months ended 31 December 2018 Other includes Transport, Landfill and Property revenues As at 30 June 2018. Includes 22 clay pits, transport, recycling and R&D sites. Concrete sites include mobile plants. Excludes mothballed plants Includes cement manufacturing, grinding, bagging and lime plants in NSW, a clinker grinding plant in Victoria and a clinker grinding JV in Queensland Includes eight Boral Hardwood mills and one JV Softwood operation With valuable upstream and downstream operations Vertically integrated positions in key markets, especially in strong East Coast markets Cement > ~70% manufactured clinker, -30% imported > 1.5m tonne p.a. clinker kiln capacity and -4m tonne p.a. cement grinding capacity1 -50-60% Cement volumes sold internally to Concrete² -40-50% Quarry volumes sold internally to Concrete².3 Concrete & Placing (in Sydney & SEQ) > >7m m³ p.a. Per m³ concrete: -0.3t cementitious material ~1.0t aggregates Quarries (all product types) > >30m tonnes p.a. > Close to 1b tonnes total reserves with -20-50 years reserves in key metro quarries -35-55% Quarry volumes sold externally² ~0.9t sand End Customer 1. Includes Boral's share of 1.5m tonnes of grinding capacity in 50% owned Sunstate Cement JV 2. Based on long-term historical average 3. For sand and aggregates only Bitumen BIA JV ~5-15% Quarry volumes sold internally to Asphalt2,3 -35% of bitumen supplied by BIA JV2 Asphalt > >2m tonnes of asphalt p.a. › Per tonne asphalt -0.055t bitumen -0.7t aggregates -0.2t sand BORAL 5 6#4Boral Australia is a great business performing well We are focused on continuing to improve our business . Strong, above cost of capital returns . Secure long term reserves and leading Reported EBITDA ($m) BORAL 1. 634 468 448 474 535 523 551 271 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1HFY19 . . integrated networks in key geographies Leveraging growth in Australia's infrastructure markets Recent capital investments further strengthens positions for the future Investments in excellence programs and capability supporting margin growth (%) • Strong customer base across diverse segments • Engaged and motivated people with deep sector expertise Reported returns 17.6% 16.7% ROFE1 15.9% 15.0% 17.5% 15.9% 12.6% 12.0% 12.0% 14.6% 14.8% 13.7% 13.5% ROS1 11.0% 9.0% 7.7% FY12 FY13 FY14 FY15 FY16 FY17 FY18 1HFY19 ROFE is EBIT before significant items on divisional funds employed; ROS is EBITDA on sales. Data includes Construction Materials and Building Products combined, which were reported separately between FY2012-16. BORAL 7 How is Boral Australia tracking in 2H FY2019? • EXTERNAL DRIVERS Shifting segment focus from residential to infrastructure: slowdown impacting in SEQ; NSW residential softening; Vic infrastructure strengthening; WA & SA slow Infrastructure projects delayed in 1H now largely on track, some other delays experienced (Vic, WA, Qld) Overall, concrete volumes continue to be softer relative to prior year No unusually adverse weather impacts experienced so far in 2H 2H FY2019 PRIORITIES Organisational Effectiveness (OE) review to lower overheads and rightsizing to align resources & demand OE delivering modest savings in 4QFY19 via ~150 fewer positions by 30 June 2019, and -$20 million benefit in FY2020 Plus ongoing rightsizing of operations, with particular focus on WA and SEQ in FY2019 Reducing costs through Operational Excellence programs including Supply Chain Optimisation Organisational restructure providing development opportunities and refocusing priorities 2H broadly in range of our expectations including property on track to deliver around $30 million in FY2019, as guided; as always we need a strong June to finish the year 8#5Leadership team and organisational structure Organisational restructure is improving focus, coordination and leveraging experience Boral Australia CEO Wayne Manners BORAL QLD & Supply Chain Simon Jeffery NSW & Major Projects Greg Price South Region & Diversity Inclusion Cement 1 Lloyd Wallace WA/NT John Ralph Rajeev Ramankutty Boral Land & Property Group Brian Tasker Project Management Office (Major Projects) reporting to NSW Executive GM Supply chain initiative being led by Qld Executive GM • New WA and cement Executive GMs • Dedicated Health, Safety & Environment (HSE) resource with elevated reporting to Boral Australia CEO • Product Councils consolidated to report to Strategy & Development to leverage activities and optimise resources • Consolidated Customer Experience and Commercial Excellence under Commercial Development & Marketing FUNCTIONAL TEAM Strategy & Development Finance Human Resources HSE Commercial Development & Marketing Digital Solutions Procurement 1. From 1 July 2019 Strengthening the business for today and the long term Focused on sustaining a strong business through capability and strategic investments . Driving a people based, safety focused culture that maximises performance and supports business objectives BOR Completing generational investments in quarries and cement to further strengthen our leading positions, as well as strategic downstream concrete and asphalt investments Building on the continuous improvement approach to optimise • Boral's cost base and improve efficiencies, including through innovation and technology • Embedding a customer orientation and effective pricing practices across all businesses Strengthening business responsiveness to changes in the external environment eg. customers, markets, competition, regulation BORAL 9 Orange Grove Quarry, WA 10#6BORAL Boral Australia capital expenditure Capex above depreciation reflects generational reinvestments Total capital expenditure, $m • Capex in recent years largely reflects Quarry and Cement investments, which will deliver benefits: SIB1 - Growth Depreciation and amortisation 289 284 244 226 203 200 189 204 197 203 I - - Deer Park Quarry (Vic) upgrade - commissioned Orange Grove Quarry (WA) upgrade - commissioned Ormeau Quarry (Qld) upgrade - commissioning Berrima alternative fuels - commissioned Portside clinker grinding facility Geelong (Vic) - due 2020 Recent capex also includes downstream network: - - 111 108 108 - 100 . FY14 FY15 FY16 FY17 FY18 1H FY18 1H FY19 1. Stay in business capital expenditure - Replacement asphalt plant at Canberra (ACT) Project concrete plants for rail precast supply at Perth, Sydney and Melbourne Replacement concrete plant at West Melbourne (Vic) Replacement asphalt plant at Toowoomba (Qld) New concrete plant at Redbank (Qld) Expect similar capex in FY2019 as FY2018, but at slightly lower levels going forward despite capital allocation in FY2020 to complete Geelong facility 11 Focused on delivering benefits from capital projects Strengthening our leading positions and improving our cost competitiveness BORAL Deer Park Quarry • ~$75m capex • New crushing & • screening plant Increased capacity Enhanced product yield with upgraded screening technology Orange Grove Quarry • ~$50m capex • New crushing plant Increased capacity • • Lower production costs improves competitive position Ormeau Quarry • ~$60m capex • • New crushing & screening plant Large capacity plant replacing 3 sub-scale operations • Lower production costs Geelong clinker storage -$130m capex • New clinker grinding import / storage facility Due to complete 2H CY2020 ⚫ Lower cost, increased capacity, expanded product range 12#7Zero | one | ten - provides internal drive and focus Three pillars of success to being the undisputed industry leader zerolonelten Zero Harm Today To our people & our environment Safety Excellence Number One Market leader & employer of choice 10% improvement Sustainable growth & continuous improvement Customer Excellence Operational Excellence Safe & engaged people Environmental stewardship Price & margin practices Customer orientation Production efficiency Supply chain efficiency Safety Excellence Engaged and capable people ZEROHARM remains our first priority TODAY . Management commitment and leadership Employee engagement in HSE responsibility: ✓ Engaging front line supervisors ✓ Strengthening behavioural programs ✓ Continuing contractor safety program ✓ Actioning site based environmental plans Division Recordable Injury Frequency Rate¹ 21.0 18.4 13.1 11.2 11.3 18.3 16.0 9.1 LTIFR ■MTIFR RIFR 11.3 9.0 9.2 7.3 2.7 2.4 1.8 2.2 FY14 FY15 FY16 FY17 2.1 FY18 1.8 1H FY19 BORAL BORAL Digital solutions helping reduce risks and change behaviours 07-01-2019 11:11:35 Boral's internally developed Angel-i smart CCTV is designed to detect pedestrians in exclusion zones on Boral's sites, with immediate notifications via flashing lights and audible alarms to warn drivers. The technology also records incidents for improved reporting. 1. Injuries per million hours worked for employees and contractors. Recordable Injury Frequency Rate (RIFR) comprises Medical Treatment Injury Frequency Rate (MTIFR) and Lost Time Injury Frequency Rate (LTIFR) 13 14#8BORAL Customer Excellence Incorporating Commercial Excellence to improve customer orientation and pricing practices >7m m³ of concrete, >2m tonne of Asphalt, >30m tonne of Quarries material, 1.5m tonne of clinker capacity and 4m tonne of Cement milling capacity to service our customers generating external revenue of -$3.6b Drive customer centricity • • Enhance commercial . culture • Standardise • sales process & systems Objectives Measure & improve customer loyalty Understand customer journeys & pain points Deliver solutions to revolutionise the customer experience Embed pricing principles and 'One Boral' behaviour Build sales competency Increase commercial acumen Optimise integrated margins Constantly review customer product value Improve decision making with disciplined fact based quoting system Progress Ongoing Net Promoter Score reporting for Concrete ✓ Mapped current journey, created future state blueprint and validated roadmap with customers ✓ Launched SMS confirmation, Concrete Deliveries App, Customer Portal showing current and future orders ✓Clear pricing principles in place ✓ Compulsory Bronze accreditation of sales roles. Silver Accreditation and Sales Manager Program underway ✓ Sales Dashboards & Sales Incentive Scheme in place ✓ Long term price planning process in place ✓ Bi-annual pricing reviews including two increases in FY2019, supporting pricing outcomes ✓ National Quotation system roll out by Q1 FY2020 BORAL Pricing outcomes Disciplined pricing growth has been supported by strong markets Our pricing objective is to cover cost increases and achieve a return on investment that consistently exceeds the cost of capital through the cycle to ensure our long term future Case Study: Boral concrete prices, FY2014-19 1HFY19 Boral concrete price movements ASP LFL FY14 Slightly Steady Steady Steady FY15 FY16 11% 14% 13% ↑ 2% 13% 12% FY17 FY18 1HFY19 ↑ 4% ↑ 3% NT QLD WA SA ASP LFL Improved pricing outcomes reflects a period of strong residential markets and growing infrastructure coupled with progressive rollout of Commercial Excellence and implementation of two price increases per annum, with better outcomes in stronger demand geographies ASP LFL NSW/ACT ASP LFL ASP LFL Price increase Price decrease VIC/TAS ASP LFL Steady prices 15 16#9BORAL Operational Excellence Continued program success driving annual savings, which is critically important to support margins and optimise costs With a strong history of increasing efficiencies of assets, people and processes, Boral Australia is redoubling efforts to lower costs and improve efficiencies in response to input cost increases and volume changes Operational Improvements • Supply Chain Optimisation Admin & Procurement Efficiency • • • • • Objectives Improve output from physical assets including lifting Operating Equipment Effectiveness (OEE) Deliver material, energy, R&M, labour savings Ensure operations /resources match demand Reduce costs to transport' and increase customer reliability / fleet to asset connectivity Standardise / automate processes Target 5-10% reduction in costs Optimise overhead costs through Organisational Effectiveness (OE) program Savings from long 'tail' of procurement contracts Eliminate legacy back office processes Progress ✓ OEE lift via plant configuration & waste reduction ✓ Capital projects tracking to plan - eg. Quarry upgrades, Berrima alternate fuels delivering savings ✓ Ongoing rightsizing¹ of business ✓ Benchmarking and reporting systems setup, and Commercial contracts under review ✓ 5-10% cost opportunities identified ✓ Expecting ~$15m to contribute to cost savings in FY2019 and -$25m in FY2020 ✓ Through OE-150 FTE reduction¹ by 30-Jun-19, delivering modest savings in FY2019; with further savings targeting to deliver $20m in FY2020 ✓ Second tier procurement review underway 1. OE and rightsizing restructuring costs to be reported as a significant item in FY2019 RHS&B2,3, VWD A$b Boral Australia's revenue derived from various markets Australian residential markets continue to soften while infrastructure is strong 12505 Other engineering², VWD A$b 125 100 75 50 25 Detached dwellings4, # starts 120,000 80,000 1H FY2019 External revenue by end-market¹, % 40,000 Other Detached dwellings 3 15 Multi-dwellings4, # starts 120,000 10 Multi- dwellings 80,000 RHS&B3 38 40,000 12 Alterations & additions 8 14 Non-residential², VWD A$b 50 Other engineering Non-residential 40 30 20 10 10.0 7.5 5.0 2.5 Alterations & additions2, VWD A$b 1. Based on split of 1H FY2019 Boral Australia external revenues 3. Roads, highways, subdivisions and bridges 2. BS historical data, BIS Oxford Economics and Macromonitor forecasts, constant 2016/17 dollars 4. ABS historical data, BIS Oxford Economics, Macromonitor and HIA forecasts FY15 FY17 FY19F FY21F FY23F 18 BORAL 17#102,000 Concrete demand in Australia Industry concrete demand forecast to peak in FY2019 but to stay at historically strong levels in FY2020 Macromonitor forecast¹ pre mix concrete demand across all Australian construction markets ('000) m³ 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Forecast volumes WA/NT VIC/TAS/SA NSW/ACT QLD • Concrete volumes expected to remain high but Macromonitor is forecasting concrete industry volumes to reduce by ~4% nationally and -7% in NSW in FY2020 as residential activity slows (Macromonitor is forecasting ~180k housing starts in FY2020) Concrete volume movements will depend on rate of new infrastructure projects coming through and shape of residential cycle FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 1. Source: Macromonitor, Construction Materials forecast, February 2019 estimates FY16 FY17 FY18f FY19f FY20f FY21f FY22f FY23f Asphalt demand in Australia Industry asphalt demand forecast to increase in FY2019 and remain at high levels Macromonitor forecast¹ asphalt demand across all Australian construction markets ('000) tonne³ 14,000 12,000 10,000 8,000 6,000 4,000 Forecast volumes WA/NT VIC/TAS/SA NSW/ACT Macromonitor is forecasting asphalt industry volumes to remain high in FY2020 with further growth in next 2-3 years, as ongoing government spending and infrastructure projects come through Forecast demand growth across most states, underpinned by major infrastructure activity 1. Source: Macromonitor, Construction Materials forecast, February 2019 estimates FY15 FY16 FY17 QLD 20 20 BORAL 19 BORAL#11Summary - Boral Australia Boral is well positioned to respond to the external environment while continuing to strengthen our footprint and the underlying business • Responding to changes in market demand by rightsizing the business and reducing costs • Leveraging our capability to supply continued strong infrastructure markets BORAL • • • • Operational Excellence and efficiency programs will help us service future construction activity more cost effectively Customer Excellence and engagement to support and improve customer experience and margins Delivering benefits from capital investments to more cost effectively supply demand; capital expenditure should reduce going forward despite completion of Geelong expenditure in FY2020 Property earnings remain an ongoing feature of the business including around $30 million in FY2019 Update and FY2020 guidance to be provided at FY2019 results announcement in August Agenda Forrestfield Airport Link, WA (Photo supplied courtesy of Salini) 21 BORAL Boral Australia overview and focus Wayne Manners Supplying a strong infrastructure segment Greg Price A reliable earnings stream from Property Brian Tasker and Judy McKittrick Boral's sustainability focus Ross Harper USG Boral strategic options update Ros Ng and Mike Kane 222#12BORAL Boral Australia's revenue exposure has shifted Increased exposure to RHSB & Engineering work over past five years Boral Australia external revenue by end-market 3% Other 8% 12% Alt's & additions 11% 10% Multi-residential 9% 15% Detached housing 17% 14% 19% Non-residential RHSB & Engineering +10% FY15 to 46% 36% FY19 FY15 1HFY19 -20-25% of Boral's Non- residential and RHSB & Engineering revenues are from major projects (or ~10-15% of Boral Australia's total revenues) Source: Based on 1HFY2019 and FY2015 split of Boral Australia external revenue Residential revenue exposure steady while exposure to RHSB & Engineering has grown Lower Non-residential as a proportion of revenue in FY2019 reflects higher level of health and retail non residential construction activity and Barangaroo in FY2015 Growth in RHSB & Engineering reflects investments in major road, rail, ports and energy projects Non major projects in RHSB & Engineering includes local and state government road maintenance work, plus construction of new roads, bridges and subdivisions, rail, ports, water and energy projects Boral generally defines 'major projects' as contributing >$15 million revenue to Boral 1. Other includes non construction activity revenues such as landfill royalties and materials supply to mining and agricultural sectors 23 BORAL A segment shift presents opportunities & challenges Matching capabilities and delivery as we transition from residential to infrastructure work Segment attributes Residential Location Metro Scale Variable and shorter Capacity Peak time Technical Moderate Supply Network Other Fixed plant distribution Multi-relationship Materials use¹ 2% to 5% of VWD Concrete focused Infrastructure (RHSB & Engineering) Metro & regional Large scale, multi-year 24/7 operations Specific client needs Integrated offering Fixed and mobile plants Project & Risk management 1% to 6% of VWD Strong infrastructure demand offers opportunity for large, integrated, profitable volumes However, large projects can have higher cost to serve due to locations and technical requirements Execution is important to maintain strong margins Volume delays outside of our control can occur -1H delays now largely on track but some new project delays experienced 1. Management estimates of construction materials industry share of value of work done (VWD); non-residential is 3% to 5% of VWD 24#13Major projects represent ~10-15% of external revenue Boral's major projects are spread across the country predominantly in infrastructure segment 2019 Geraldton Airport Overlay of existing airfield pavement ~45,000 tonnes asphalt Northern Connector Supply of quarry materials and ~175,000 tonnes asphalt 2018-2020 2018-2019 2018-2020 5 3 Melbourne Metro ~90,000m³ concrete 2018-2020 from mobile plant into pre-cast concrete tunnel segments Other projects underway 2018-2020 Note the dates listed under each project are start date- completion date 6 4 Northern Road Stage 2 Major Road upgrade ~200,000m³ concrete & placement, plus ~110,000 tonnes asphalt 5 Sydney Metro ~140,000m³ concrete into pre-cast concrete tunnel segments Pacific Motorway - Mudgeeraba to Varsity ~180,000 tonnes asphalt supply and place via fixed plant, plus concrete and quarry materials supply A strong medium term project pipeline While the pipeline is strong, the shifting nature of work is changing materials intensity Major transport infrastructure construction projects¹ (A$b) 24 20 Forecasts Manash Freeway Upgrade Canberra light Rad Softer concrete volumes driven by more tunnelling Premix demand (million m³) from major transport construction¹ 2.0 1.5 Rail NOTE: 00 8 16 16 12 BHP Billiton rilbora кой ortescue bara Rail Fouth ro Ran Regional Rail Link VIC West Re 13nd 4 gacy Way NDRRA - QLD MS Upgrades Moreton Bay Rail Roy Hill Logan Enhancement Northlink Sydney Metro- Webb Dock Toowoo City Link vier Suburban Arterials Road Outer? Perth Metronet Rall Level Crossing Removal Melbourne west Melbourne Metro Rail Sydney Metro - City & Southwest Corridor Adelaide 2nd Range Cre 1.0 0.5 Inland Sydney Light Rail West Gate Tunnel - Melb. Western Sydney WestConnex and Fá extension NorthConnex Bruce Highway Upgrading 2.0 Me 1.5 1.0 0.5 0 M2M Expressway Pacific Highway Upgrading 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. Source: Macromonitor February 2019 Forecasts. Major projects defined as >$75m iof VWD FY12 NSW/ACT FY13 FY14 FY15 FY19f RHSB FY20f FY21f FY22f Growing asphalt volumes driven by Vic demand Asphalt demand (million t) from major transport construction1 WA/NT VIC/SA/TAS demand from major transport construction represents 5% of total industry concrete volumes and -15% of total industry asphalt volumes in FY19 & FY20 FY16 FY17 QLD FY18 FY19f FY20f FY21f FY22f 26 BORAL 25 BORAL#14Project completion Barangaroo Crown Casino, NSW Bringelly Road - Stage 1, NSW Forrestfield Airport Link Part 1, WA Geraldton Airport, WA Estimated completion Logan Motorway - Enhancement Works, Qld CY2019 NorthConnex, NSW Northern Beaches Hospital, NSW Pacific Motorway, M1 M3 Merge, Qld Cairns Southern Access Corridor - Stage 4 Kingsford Smith Drive, Qld Norfolk Island Airport 2018, Qld Boral's largest projects and potential pipeline We are well placed to supply current and future projects Status Projects under tender Barangaroo-One Sydney Harbour Basement Cross River Rail, Qld Haughton River Bridge, Qld RAAF - East Sale, Vic Smithfield Transport Corridor, Qld Snowy Hydro 2.0, NSW Strategic road upgrades, Vic Sydney Metro O/S, NSW Warrego Highway - Safety Upgrade, Qld WestConnex - Stage 3B, NSW Inland Rail Project Narromine to North Star, NSW Northern Road Stage 2 & 3, NSW Estimated completion West Gate Tunnel, Vic North-South Corridor Adelaide, SA CY2020 Western Sydney Airport, NSW Pacific Highway W2B various sections, NSW Pacific Motorway M2VL Sydney Metro (City/SW precast), NSW Melbourne Metro Rail Project (precast), Vic Westgate Tunnel segments Benalla, Vic Estimated completion Coffs Harbour Bypass, NSW Melbourne Third Runway, Vic North East Link, Vic Warragamba Dam, NSW CY2021 1. Boral's major projects are generally defined as contributing >$15m of revenue to Boral Status BORAL Currently tendering Pre-tendering BORAL Continuing our success through major project work We have a strong track record supplying major projects and other infrastructure backed by Boral's network positions and improved capabilities Boral delivers value to our customers through excellence in key success factors Customer focus Proven track record Integrated offering Surety of supply ⚫ Chain of responsibility management / safety ✓ Project Management Office Strong asset base Integrated network Scale base load resources Flexible satellite sites with fixed and mobile plants to meet surges in demand Rigorous project management • • Integrated supply chain Optimising network through logistics Strategic mix of sub- contracted & owned cartage capacity Logistics to optimise utilisation as end markets transition ✓ Contracting operating processes Technical capability Quality through the supply chain • Efficient mix formulation • • Suitable for use characteristics Innovative solutions National Product Council links . Risk & contract management Structured process reduces risk Project management process from project identification to contract execution and deed of release Project team capability People capability 27 28#15Case study: Northern Road Stage 2 (revenue $60m) Success in multi-product bids Littlefields Jamison d Glenmore Parkway to Jamison Road Great Western Highway Blacktown M4 Open 2020 Parkway Wentworth Road Littlefields Road to Glenmore Parkway Western Sydney Employment Are M7 Mount Vernon H12 Motorway corridor Eaton Road to Littlefields Road Detallat An underway Luddenham Luddenham Road abeth Drive Eaton Road Western Sydney Airport at Badgerys Creek Mersey Road Road Kemps Creek M7 BORAL Boral is uniquely positioned in major infrastructure to offer a package for asphalt and concrete Multiple pain points solved for our customer • • Quarries & Cement - one service provider versus multiple Asphalt - dedicated production plant, security of upstream materials, program time savings, intrastate flex crew capacity Concrete quality assurance through wet batch technology, program management (agitator fleet) Key success factors Mersey Road to Eaton Road Constructie unters Bringelly Peter Brock Drive to Mersey Road Western Sydney Airport Growth Area The Bringelly Road and The Northern Road interchange Bringelly Road Lipington South West Growth Area Brock Drive Mobile Concrete & Asphalt Plants The Old Northern Road Nare Camden Valley Wa M31 Oran Pork • The Old Northern Road • to Peter Brock Drive Compreted 201 • Early engagement (pain points resolved) Availability of high productivity production plants Strong client relationships from previous projects Solution mindset Case study: precast rail projects Success in technical solutions / capabilities Technical investment Early concrete solution based investment • Technically complex solutions developed . Early engagement with project critical Leveraging Boral experience and learnings from other major projects • Supplying large volumes via 'bolt on' concrete plants attached to customers' precast facility • Deploying equipment and people nationally • Demonstrating our strong safety management and chain of responsibility Fire testing Flex testing Slump testing BORAL Forrestfield Airport Link, Perth 180,000m³ concrete • 54,000 segments and stations (9,000 rings) Sydney Metro, Marrickville 2017 to 2019 . 140,000m³ concrete . 99,000 segments • 2018 to 2020 Melbourne Metro, Deer Park • 90,000m³ concrete 50,000 segments 2018 to 2020 29 30#16Summary - supplying a strong infrastructure market We are well placed to continue to supply Boral's strong infrastructure pipeline MARKET DRIVERS • Strong pipeline of work especially in major projects • • • Infrastructure pipeline is east coast dominant Future work more asphalt intensive Understanding major projects pipeline and targeting best for Boral work Volume delays / disruptions can occur, which are outside Boral's control eg. technical challenges, project scheduling, resourcing, weather interruption INTERNAL CAPABILITY • • Strong fixed and mobile network • BORAL Boral's Project Management Office capability is aligning to customer needs and optimising outcomes Delivering on key success factors eg. technical know how, supply quality and continuity, HSE Integrated product offering • Execution is important to maintain strong margins BORAL Agenda Artist impression of Penrith Lakes development Boral Australia overview and focus Wayne Manners Supplying a strong infrastructure segment Greg Price A reliable earnings stream from Property Brian Tasker and Judy McKittrick Boral's sustainability focus Ross Harper USG Boral strategic options update Ros Ng and Mike Kane 31 32#17Property leadership team Boral's team operates across all aspects of the property cycle Property National GM Brian Tasker BORAL (NSW/ACT) Kate Jackson Commercial Manager Phil Taylor Regional Manager Regional & National Quarries Planning Manager (Qld / NT/WA) Paul West National Land Development Manager Judy McKittrick Portfolio Asset Manager Regional & National Void Rehabilitation Graeme Webber Manager (Vic/SA/Tas) Andrew Bondini Acquisitions, Approvals, Asset management, Rehabilitation, End-use, Divestments BORAL Property is an ongoing contributor to earnings Boral has a strong track record of maximising returns from property assets Property earnings • Earnings secured through multi-year projects and smaller sales of surplus land • Investment in strategic asset lifecycle management, portfolio rationalisation, and operational consolidations have released valuable property opportunities • Optimising returns through value-added land management including rezoning for residential or industrial purposes Guidance of -$30m in FY2019 Property EBIT1 A$m 28 24 25 24 29 29 48 37 17-year average Property earnings: $33m 47 54 47 46 63 32 28 28 -30 28 24 8 12 FY01 FY02 FY03 FY04 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19f 1. Excluding significant items (including divestment proceeds from Deer Park Landfill) and ongoing landfill royalties. 33 34#18Generating significant value through an integrated life-cycle approach to land management Boral Australia manages a large land bank (400+ properties) through all operational stages to disposal Key activities Securing site tenure and related government approvals, including land use to supply major projects Facilitating stakeholder engagement Managing leases and property administration Developing future end-use options Key challenges Securing government approvals for greenfield, upgrades or rezoning Ongoing urban encroachment impacting existing locations Expanding operational life timeframes New need identified Development approval Capital approval Operational Life Develop¹ or sell Land Disposal Land use approvals planning Operational End use strategy Rehabilitate site BORAL 1. Boral engages external land developers to manage this process 35 BORAL anning tional Building and protecting our leading positions Our goal is to build and protect Boral's leading positions through a life-cycle approach throughout the operational life of our land assets Decades of proactive planning, investment and stewardship to secure resource • positions, through: Identification and securing land and resource assets Working with Government on extractive policy to protect sites Delivering timely, cost effective, sector leading regulatory approvals need identified Locate Development approval Capital approval Operational Life • Maintaining regulatory compliance and community support to operate End use strategy 36#19BORAL Operational life case study 1: LYSTERFIELD QUARRY, VICTORIA Removing the staging sequence to maximise extraction and minimise costs Background Operational Life Under Lysterfield Act 1986 quarry operations commenced May 1986 for 50 year term expiring 5 May 2036 Key activities 2018: with extraction within Stage 1 of quarry almost complete, an application to remove sequence of staging is submitted to The Minister of Resources • Dec 2018: Department approved removal of staging sequence without need to amend the Lysterfield Act 1986 Benefits • Optimising quarrying and underlying geology (freeing up 5m tonne of resource) Enables ongoing extraction without relocating plant, which has useful life of 15+ years and replacement cost of $50-60m 37 Operational life case study 2: DUNMORE QUARRY, NSW Securing adjacent land and new approvals to extend resource positions • Background Operational Life Quarry reserves diminished faster than anticipated due to increased demand • Additional resource identified west of existing site • • Key activities 2016: 225 ha of lands purchased from neighbouring farmer. Approvals process to secure additional 34m tonnes of reserve 2017: approval secured and quarrying commences in new area, extending reserve life by up to 20 years Benefits • Dunmore Quarry is Boral's second largest quarry, approved for 2.5m tonne pa via rail and/or road BORAL • Secures raw material for downstream concrete and asphalt businesses 38#20End use case study 1: GREYSTANES ESTATE DEVELOPMENT delivered significant end use value with ~$260m of EBIT over 15+ years: completed in 2018 • 1998 - end use development potential identified Land Disposal • 1999/2000 - rezoning and planning approvals secured BORAL • 2001 - End of quarry life, with sale of Northern Employment Lands (NEL) ⚫ 2002 - Delfin Lend Lease commences Nelsons Ridge residential development under a property development agreement 2007 - All operations of 100+ year Prospect Quarry cease ⚫ 2007 - SEL Eastern rehabilitated quarry floor sold to Dexus 2014-SEL Western rehabilitated quarry floor sold to Dexus . 2016 Nelsons Ridge project completed 2018 - Sale of Boral's former Masonry plant adjacent to SEL Precinct (A$) million 2002-2018 Revenue EBIT Northern Employment Land (NEL) 115 66 Southern Employment lands (SEL) (Phase 1) 160 32 SEL (Phase 2) 66 6 Nelsons Ridge 269 100 Prospect Masonry Total 60 56 670 260 39 End use case study 2: DEER PARK QUARRY TO LANDFILL STRATEGY is extracting significant value through sale of past and future quarry voids, with a projected earnings contribution of >$500m¹ Ongoing quarry and landfill operation located ~25km west of Melbourne's CBD ⚫ 1965 - Deer Park Quarry commenced operations • 1993 - Deer Park Asphalt established 1999 Landfill operations commenced concurrently with quarry • 2001 Deer Park Concrete established 2014 - Landfill business divested to Cleanaway Waste Management (formerly Transpacific Industries) for $150m² 2015 Royalties commenced at -~$15m pa, growing over time for the life of the landfill • 2019 - zero cost Earth Exchange program underway - accepting clean fill from major infrastructure project for future Land Disposal BORAL quarry development and permanent rehabilitation of same areas ⚫ Landfill earnings reported in underlying business (not shown in Property earnings) 1. Based on gain on disposal of Western Landfill business (which was reported as a significant item in FY2015) and assuming current landfill royalties (reported as earnings in operating business rather than Property earnings) to continue at a similar level for the life of the current consented landfill, subject to required approvals 2. Under the agreement Boral received $150m as an upfront payment and $15m for site preparation works 40#21BORAL Boral's potential surplus property and project pipeline A national portfolio of approximately 2,800 hectares¹ with potential to yield end use value and generate ongoing earnings over the next 20+ years KEY Manufacturing Quarrying / mine Vacant land NT QLD Queensland Lawnton (12 ha) Mount Crosby (427 ha) New South Wales Armidale (2.5 ha) Bombo (44.5 ha) Dido Street, Kiama (3.7 ha) Western Australia WA SA NSW/ACT Medway (247 ha) Berrima (275 ha) Maldon (50 ha) Penrith Lakes Wingham (7.7 ha) Donnybrook (338 ha) Scoresby (171 ha) Waurn Ponds (1020 ha) Deer Park Landfill Middle Swan (30 ha) South Australia VIC/TAS Para Hills (70 ha) Reynella (20 ha) Stonyfell (120 ha) Victoria 1. Excludes Penrith Lakes and Deer Park Landfill BORAL Sustainable property & landfill earnings into the future Ongoing earnings projected from property, including ~$30m¹ in FY2019, and a significant potential pipeline FY2019 FY2021 FY2024 FY2027 FY2030+ Tactical/surplus land sales $40m+ current pipeline includes: NSW - Armidale, Wingham, Kiama, Bombo | WA- Jandakot | SA-Reynella, Stonyfell, Para Hills Ongoing projects Donnybrook, Vic Projected $300m+ (to ~2040) Scoresby, Vic Potential $300m+ (subject to rezoning) Waurn Ponds, Vic Potential $100m+ (subject to rezoning) Penrith Lakes (PLDC), NSW Timing and contribution being evaluated Deer Park landfill², Vic Projected $500m+ (over the life of the current landfill)² With Boral's deep property land bank and ongoing investment in the business, the pipeline will continue to refresh 1. FY2019 includes earnings from sale of Penrith Lakes employment lands, as well as contribution from Donnybrook 2. Based on gain on disposal of Western Landfill business (which was reported as a significant item in FY2015) and assuming current landfill royalties (reported as earnings in operating business) to continue at a similar level for the life of the current consented landfill, subject to required approvals 41 42#22BORAL Current project: Donnybrook, Vic Vacant, surplus land to residential development being undertaken by Mirvac projected to deliver $300m+ of earnings to Boral to 2037 Boral owned 278 ha DONNYBROOK Y72 irvac • • Donnybrook site acquired >15 years ago as a hard rock quarry, subsequent inclusion in Melbourne's urban growth boundary precluded future quarrying 2013: initial Boral and Mirvac agreement involved sale of 127 ha of land to Mirvac and development by Mirvac of a further 60 ha retained by Boral May 2018: new agreements executed with Mirvac Olivine project: 465 ha in total, with Boral retaining 338 ha of land, supporting >4,000 dwellings when fully developed, incl. ~3,000 on Boral's land Earnings contribution . . $9 million received in FY2018 Approximately $9-$14m pa EBITDA expected through to FY2021, and then again between FY2025 and FY2027 HAYESHILL BLVD owned 127 ha • Further significant earnings expected from FY2027-FY2037 powermock Potential Boral earnings now projected >$300m over 20 years from FY2018, with ~$75m expected prior to FY2027 as outlined above Potential project: Scoresby, Vic Brick operations to mixed use ⚫ Boral's share of east coast brick JV divested to CSR in November 2016 with Scoresby land retained by Boral; CSR continues to lease part of site • Rehabilitation of former clay pit and rezoning underway • 87 ha proposed residential infill land and 84 ha parklands, subject to rezoning including removal of existing Victorian State Government parks acquisition overlay . In process of appointing a developer for Scoresby Scoresby could deliver overall earnings similar to Donnybrook, when rezoned Adding to the $134m of proceeds already received through the divestment of the Brick operations to CSR in November 2016 The video highlights the scale and development opportunity of the Scoresby site, subject to rezoning; and is accessible at www.boral.com 43 BORAL 44#23• BORAL Potential project: Waurn Ponds Cement operations to mixed use urban development XXXX 1,020 ha land area in designated growth corridor adjacent to Armstrong Creek, south west of Geelong • Cement operations to cease in next 18-24 months with rehabilitation required post cement operational life Taking tunnelling spoil and fill materials from infrastructure projects for a fee, partially offsetting rehabilitation costs • Land rezoning strategy underway with land value directly related to rezoning ⚫ Potential rezoned land value $100m+ Potential project: Penrith Lakes The video highlights the scale and development opportunity of the Waurn Ponds site, subject to rezoning; and is accessible at www.boral.com BORAL Penrith Lakes Development Corporation (PLDC) is jointly owned by Boral (40%), Holcim (40%) & Hanson (20%) and was previously Sydney's main quarry supply • 1960: Shareholders of PLDC acquire freehold land for the quarry & proposed Penrith Lakes Scheme 1980: Penrith Lakes Development Corporation formed Wildlife Lake • 1984: Department of Planning completed review of Scheme of Options & commenced negotiations for the Main Lake System Lake B • 1987: PLDC and the State Government enter into the 1987 Deed of Agreement 1991: Penrith City Council Local Environmental Plan recognises heritage places within the Penrith Lakes Scheme area • 2000: Sydney Olympics rowing venue • 2012: Water Management Plan Stage 1 approved - detailing major weirs, associated works and flood planning levels • 2014: Quarrying ceases. Water evacuation infrastructure complete ⚫ 2017: Site rezoned through Urban Instrument; further rezoning required to unlock full development potential Lake A Regatta Lakes Quarantine Lake Southern Wetlands 46 46 45#24BORAL Status of Penrith Lakes Australia's largest water-based urban parkland The video highlights the scale and development opportunity of the Penrith Lakes site, subject to further rezoning; and is accessible at www.boral.com Penrith Lakes total size 1,935 ha land area • ~ 410 ha of land allocated for potential urban development ~ 560 ha remaining development/dedication .~ 960 ha for 9 lakes and foreshores dedicated to government Potential scope of residential development • • • Current zoning enables limited development in residential, employment, industrial and tourism-related land uses ~200 ha of land is now ready to build Further rezoning required to unlock full development potential Collaborative master-planning of site could deliver 5,000+ homes subject to resolution of flood evacuation issues Majority of un-rehabilitated employment lands sold, with some share of EBIT in 2H FY2019 (included in Boral's ~$30m FY2019 guidance) Next steps • Discussions with NSW State Government are continuing BORAL Summary: property will deliver earnings into the future Ongoing earnings projected from property, including ~$30m¹ in FY2019, and a significant potential pipeline FY2019 FY2021 FY2024 FY2027 FY2030+ Tactical/surplus land sales $40m+ current pipeline includes: NSW - Armidale, Wingham, Kiama, Bombo | WA- Jandakot | SA-Reynella, Stonyfell, Para Hills Ongoing projects Donnybrook, Vic Projected $300m+ (to ~2040) Scoresby, Vic Potential $300m+ (subject to rezoning) Waurn Ponds, Vic Potential $100m+ (subject to rezoning) Penrith Lakes (PLDC), NSW Timing and contribution being evaluated Deer Park landfill², Vic Projected $500m+ (over the life of the current landfill)² With Boral's deep property land bank and ongoing investment in the business, the pipeline will continue to refresh 1. FY2019 includes earnings from sale of Penrith Lakes employment lands, as well as contribution from Donnybrook 2. Based on gain on disposal of Western Landfill business (which was reported as a significant item in FY2015) and assuming current landfill royalties (reported as earnings in operating business) to continue at a similar level for the life of the current consented landfill, subject to required approvals 47 48#25BORAL Agenda Boral supplying Envisia concrete to Crown Sydney Barangaroo, NSW Boral Australia overview and focus Wayne Manners Supplying a strong infrastructure segment Greg Price A reliable earnings stream from Property Brian Tasker and Judy McKittrick Boral's sustainability focus Ross Harper USG Boral strategic options update Ros Ng and Mike Kane 49 BORAL Ensuring Boral's sustainability for the long-term Our objective is to deliver shareholder returns above our cost of capital through the cycle, while creating value for our customers, employees, suppliers and the communities in which we operate. We strive to create value for these stakeholders by: . • . Driving safety performance towards world's best practice and investing in our people to enable them to deliver on our strategy Reducing our environmental footprint and building our resilience to climate-related impacts Delivering innovative, superior performing and more sustainable products and solutions that respond to a changing world and better meet our customers' needs Being a socially responsible member of the communities in which we operate 50 50#26BORAL Safety performance Reaching industry best practice levels Employee and contractor RIFR1 (per million hours worked) 17.4 All divisions recorded RIFR1 improvements in 1H FY2019 compared to FY2018 1H FY2019: RIFR of 6.7 (8.7 in FY2018) RIFR MTIFR LTIFR 13.6 12.1 Comparable data LTIFR of 1.1 (1.6 in FY2018) 15.5 11.7 10.3 7.5 7.1 6.6 8.8 Headwaters businesses delivered a significant turnaround, and Meridian Brick also improved 8.7 8.1 8.3 6.7 FY2019 YTD (Apr-19) LTIFR RIFR Boral Australia 1.6 9.7 5.6 Boral North America 0.8 7.4 1.9 1.9 1.8 1.3 1.5 1.6 1.1 1.1 FY13 FY14 FY15 FY16 FY17 FY18 1H FY18 1H FY19 USG Boral BORAL 1.0 3.4 1.1 7.1 1. Recordable Injury Frequency Rate (RIFR) per million hours worked is the combined Lost Time Injury Frequency Rate (LTIFR) and Medical Treatment Injury Rate (MTIFR). Includes employees and contractors in all businesses including Headwaters and all joint ventures regardless of equity interest from FY2018. Prior years include 100%-owned businesses and 50%-owned joint venture operations only BORAL 51 Boral's GHG emissions have been reducing Boral's GHG emissions from operations¹ North America Asia Australia 671 644 582 Emissions intensity tonnes CO2-e per A$m revenue • Absolute GHG emissions of 2.60m tonnes CO2-e pa (scope 1 & 2) 5% in FY2018 27% since FY2012 (largely due to Headwaters) Absolute emissions (million tonnes CO2-e) 3.54 3.41 3.14 Emissions intensity 375 tonnes CO2-e/A$m revenue 44% since FY2012 523 491 488 375 (due to Headwaters) 2.64 2.46 2.46 FY12 FY13 FY14 FY15 FY16 FY17 FY18 23% in FY2018 Target: a further 10-20% reduction in intensity by 2023 • Boral's fly ash in the supply chain: ~5.2m tonnes pa of avoided CO2-e emissions Target: avoid a further 1.1-1.5m tonnes CO2-e pa in supply chain by 2022 through increased fly ash supply² 1. For 100% owned operations and Boral's share of 50%-owned joint ventures. Excludes some JV's which in aggregate are deemed not to be material 2. Based on target to increase net supply of fly ash by 1.5-2.0m tons pa over next three years 52 52#27BORAL Integrating sustainability and business strategy Since 2012 our energy use and carbon emissions have reduced 24% and 27% respectively Energy consumption (petajoules) 15 2050 Boral's energy consumption and total scope 1 and 2 GHG emissions 1,2,3 30 4.0 3.5 25 3.0 2.5 2.0 1.5 10 1.0 0.5 0.0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018. Natural gas Diesel and liquid fuels Biofuels Electricity Coal Other (million tonnes CO2-e) Total GHG emissions from operations Fly ash reclaim at Montour, Pennsylvania demonstrates Boral's capability to increase fly ash supply in the market, and therefore reduce cement usage GHG emissions Boral also has proven capability to repurpose fly ash - combined with polymers, it becomes a durable building product 1. Data provided for Scope 1 and Scope 2 GHG emissions and energy consumption is for 100%-owned operations and Boral's share of 50%-owned joint venture operations - it excludes some joint ventures which in aggregate are not deemed to have material emissions 2. USG Boral Asia emissions data for FY2017 has been restated using local electricity emissions factors where available 3. Figures may not add due to rounding BORAL Boral's emissions reductions primarily from Australia Some reductions are permanent, some from divestments, some replaced with imports Boral's Scope 1 & 2 GHG emissions, million tonnes CO2-e FY2012-FY20181 3.54 0.25 0.82 0.13 Includes Headwaters acquisition Largely reflects shift from 100% to 50% ownership 2.60 Boral's strategy has been to reduce exposure to energy and emissions-intensive operations and build a portfolio of lighter weight products, with lower fixed costs Boral Australia emissions are lower due to: - exiting higher cost, less efficient cement kilns at Waurn Ponds and Maldon divestments of East Coast Bricks and Landfill business in Victoria FY2012 Boral Australia Boral North America USG Boral FY2018 - energy and operational efficiency programs • No intention to invest in new cement or brick kilns 1. For the purpose of this analysis, emissions associated with Boral's Australian plasterboard business in FY2012, which was part of Boral Building Products in FY2012 have been reclassified as USG Boral GHG emissions 53 54#28BORAL Managing sustainability issues Boral is focused on protecting and growing our operations through sustainable practices e.g. Boral Australia's current focus: Climate-related impacts and energy • Waste and recycling Water • Completed scenario analysis work in Cement consistent with TCFD recommendations Well-positioned for regulatory transitions given long history of emissions reductions Boral Cement is meeting its safeguard mechanism baseline targets for large emitters Managing physical impacts of weather with flood, storm deluge plans & crisis response plans in place Comprehensive review of integrity and monitoring of any on-site dams against risk of deluge New investments recognise and address increased physical risks Re-use of waste materials (concrete washout, recycled asphalt pavement) across sites Use of alternative fuels (eg. wood & other waste) reducing coal consumption & operational emissions Upgrade of stormwater management infrastructure complete Developing plans to improve water efficiency Protection of biodiversity values at and around our sites Biodiversity Compliance Aim to improve biodiversity outcomes by partnering with statutory bodies in research & other initiatives Target zero environmental infringements across all of our operating sites Centralised information management system monitors environmental licence conditions in Australia 55 BORAL Delivering more sustainable business outcomes Investment in innovation benefits customers with development of more sustainable products; currently ~9% of revenues from low carbon, high-recycled products, with targeted growth in: Fly ash Lower carbon concrete and cementitious products eg. EnvisiaⓇ • Boral TruExteriorⓇ siding & trim, and related products (~70% fly ash / polymer composites) Boral Recycling and other waste based products eg. manufactured sand, recycled asphalt pavement Next generation SheetrockⓇ EcoSmart Panels - lower water and energy consumption 44 F JS THOSEULENS EnvisiaⓇ concrete pour SheetrockⓇ OOLLES Boral Recycling at Widemere facility, NSW Boral TruExterior® - composite siding & trim 56#29BORAL Delivering more sustainable business outcomes Boral Cement has a roadmap to reduce Scope 1 and 2 CO2-e emissions by up to around 300k tonnes pa, with some opportunities dependent on carbon pricing, capital investment and future lower cost alternatives Boral's FY2018 CO2-e Emissions by Source Scope 1 & 2 CO2-e Abatement projects and opportunities in Boral Cement High priority current projects Biofuels Natural gas 17 Calcination 32 Electricity 21 Medium priority identified projects¹ Lower priority identified projects¹ Coal 17 12 Diesel & liquid fuels Boral's Cement business accounts for -60% of Boral's total emissions including 32% from calcination Around 300k tonnes of potential Scope 1 and Scope 2 CO2e abatement opportunities identified e.g. Alternative fuels program Energy efficiency initiatives Waste heat recovery to generate power e.g. ⚫ Power purchase agreements .Grow Envisia • Supplementary cementitious materials • Concrete recycling carbonisation opportunities e.g. Pre-crusher and classifier upgrades Imported clinker 1. Some opportunities subject to capital investment, future carbon price and available technologies Berrima Cement Works alternative fuels facility Agenda USG Boral EasyFinish™ BORAL 57 USG BORAL Boral Australia overview and focus Wayne Manners Supplying a strong infrastructure segment Greg Price A reliable earnings stream from Property Brian Tasker and Judy McKittrick Boral's sustainability focus Ross Harper USG Boral strategic options update Ros Ng and Mike Kane 58#30USG Boral is an attractive long term growth business 50%-owned joint venture in Australasia, Asia & Middle East Underlying USG Boral results, A$m BORAL 1H FY2019 FY2018 Revenue 831 1,575 Operating Footprint (number of operating sites4) 3 2 South Korea EBITDA¹ 125 268 18 Plasterboard plants 628m m² capacity5 China EBITDA ROS 15.1% 17.0% 23 board lines / 6 ceiling lines 11 3 Middle East 1 EBIT1 84 194 3 Thailand India Vietnam 3 Gypsum mines Net Assets 2,031 1,955 Malaysia 1 29 Other plants6 ROFE1,2 8.1% 9.9% 2 Indonesia 2 Australia 1H FY2019 External revenue³, % 3-14 NZ 1 Australia/NZ 16 • South Korea ⚫ Thailand 37 12 • Indonesia ⚫ China ⚫ Other 5 10 20 123 456 5. Excluding significant items EBIT before significant items on funds employed Based on split of underlying revenue for USG Boral. USG Boral's revenue is not reported in Boral's income statement as this 50% investment is equity accounted As at 31 December 2018. Certain manufacturing facilities and gypsum mines are held in joint venture with third parties Excludes capacity under construction in India and Vietnam 6. Production of plasterboard and other products may be at the same physical location. Other plants include mineral fibre ceiling tile, metal ceiling grid, metal products, joint compounds, mineral wool and cornice production BORAL We are progressing discussions with Knauf to form an even better business in Asia for USG Boral 24 April - Knauf completed acquisition of USG Corporation Progressing preferred option as outlined in February, including negotiations to: - form a new expanded Asia plasterboard JV with Knauf - acquire USG Boral's Australasian¹ plasterboard business returning Boral to 100% ownership in that region Due Diligence now underway - including site visits and deeper review of Knauf's operations in Asia Transaction with Knauf remains subject to due diligence and execution of definitive documents Boral remains under no obligation and will only invest if it is value creating for Boral's shareholders, but we are optimistic about the opportunities to form an expanded JV in Asia and return to 100% ownership in Australia. NOTE: Valuation process commenced with USG for the USG Boral business continues to progress, with contractual arrangements in place to preserve Boral's call option in the event a transaction is not agreed to with Knauf. Contractual arrangements also in place to provide a standstill on any potential litigation by Boral against Knauf, while negotiations are continuing. 1. Includes Australia, New Zealand, Papua New Guinea and islands in the South West Pacific. 59 60#31BORAL Strategic considerations and objectives underpinning Boral's decision making Deliver EPS accretion for Boral's shareholders Factor market cycles into valuations, including downturn in Australia Aim to fund transaction through debt and proceeds from divestments while maintaining robust balance sheet including maintenance of our existing BBB / Baa2 credit rating from S&P and Moody's Strengthen an already attractive growth business in Asia by capturing potential synergies Additional manufacturing capacity (currently running around 80%+ utilisation) Multi-tier branding opportunities SG&A cost savings Additional technology opportunities - USG + Knauf backing Ensure ongoing ability to secure R&D support/IP in Australia 61 BORAL USG Boral's & Knauf's current footprints in Asia Negotiations with Knauf are based on combining plasterboard assets in Asia to form an expanded Asian plasterboard joint venture with highly complementary assets in the region Operating footprint (number of operating sites) 14 USG Boral Plasterboard plants 9 KNAUF Plasterboard plants 1 USG Boral Gypsum mines 21 USG Boral Other plants¹ 13 KNAUF Other plants/mines¹ Approximate shares of combined revenues in Asia, % South Korea China ⚫ USG Boral 8 6 -25% ⚫ KNAUF 3 1 1 Thailand India 11 Vietnam Philippines 1 3 Malaysia 1 3 Indonesia 2 1. Other plants include mineral fibre ceiling tile, metal ceiling grid, metal products, joint compounds, mineral wool and cornice production -75% 62 62#32Questions USG Boral Ensemble TM at Chancery House, Perth The team at the precast facility, Deer Park Vic Artarmon concrete plant site visit ORAL Sydney Metro Concrete Agitator BO Hosted by • • Greg Price Executive General Manager, NSW and Major Projects Geoff McDonnell Operations Manager Metro NSW Boral Concrete ⚫ Richard Bugeja Production Manager Sydney North Boral Concrete • Adam Tointon Business Improvement Manager Boral Construction Materials BORAL BORAL 63 64#33Artarmon Concrete plant site visit Artarmon is a key part of Boral's NSW concrete network NSW /ACT operating footprint (number of operations¹) 20 Quarries 95 Concrete 14 Asphalt 4 Cement² 1. 2. As at 30 June 2018 Includes cement manufacturing plant, bagging plant and lime plant BORAL Western Parklands City Windson Central River City Peats Ridge Eastern Harbour City Mt Kuring-Gai Penrith Blacktown Widemere Smithfield ◆ Thornleigh Brookvale Granville Artarmon Auburn Enfield Alexandria Liverpool. St Peters Prestons Botany Minto Berrima Maldon Peppertree Campbelltown NSW/ACT safety performance Safety remains our first priority We have seen great improvement in lag indicators through key programs which include: ✓ A strong focus on serious harm prevention particularly high risk elements such as vehicle and pedestrian interactions and isolation ✓ Focusing on improving individual behaviours through our annual stop for safety program ✓ Empowering our front line leaders through the Zero One Ten leader program Dunmore Caringbah ◆CONCRETE QUARRY ▲ ASPHALT CEMENT Locations of plants are indicative BORAL LEAD Indicators HRFR LAG Indicators SHIFR 3144.1 3250.2 8.8 2475.9 2397.8 2396.3 2.5 1.8 1.5 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 YTD YTD LTIFR 38.0 RIFR II... I... 3.9 28.1 1.9 1.2 0.8 FY15 FY16 FY17 FY18 FY19 FY15 FY16 YTD 14.3 14.1 11.7 FY17 FY18 FY19 YTD 65 Injuries per million hours worked for employees and contractors. Recordable Injury Frequency Rate (RIFR) comprises Medical Treatment Injury Frequency Rate (MTIFR) and Lost Time Injury Frequency Rate (LTIFR), Serious Harm Incident Frequency Rate (SHIFR), Hazard Reported Frequency Rate (HRFR) and Near Miss Frequency Rate 66#34Artarmon plant overview Artarmon is part of Boral's Metro network Wahroonga Garigal National Park Thornleigh Pymble Frenchs Forest A3 ey Park Macquarie Park North Ryde A38 Ryde Enfield A4 M5 A34 Artarmon AB A40 M1 Sydney Surry Hills Narr History Dee W Brookvale Ma Market • BORAL • • Long term Boral owned site Rebuilt in 2010 • 6,000m² footprint • 8km from Sydney CBD High rise and infrastructure works Supplementary supply to NorthConnex 24 hour operating consent 500k m³ per annum production consent Fully integrated raw material set ⚫ 2 onsite plant staff • Operating conditions People • 15 agitator drivers (owned & contractors) St Peters M1 70 raw material truck deliveries per day Supply chain process Concrete virtual flow CUSTOMER tto CONCRETE DON Capture and plan Review specifications • Central ordering ⚫ Central allocation . Demand planning • • • STOCKTORY BORAL BORAL 67 BORAL CUSTOMER QUALITY CONTROL Pre production Mix designs set / loaded Stock control and ordering Customer sites inspected Staff resourced and briefed • Manufacture / deliver Production in tolerance ⚫ On time in full Tested for compliance Idle time and waste reduction 68#35BORAL Artarmon satellite site map 1,500 tonnes aggregate and sand storage Drive over bins Peppertree material Train to St Peters - road to plant Disclaimer 424 700 tonnes of powder storage Boral Cement Berrima Train to Clyde - road to plant Fly Ash - Eraring by road 2 production lanes 4 slump stands (mixing points) 36 loads per hour BORAL The material contained in this document is a presentation of information about the Group's activities current at the date of the presentation, 31 May 2019. It is provided in summary form and does not purport to be complete. It should be read in conjunction with the Group's periodic reporting and other announcements lodged with the Australian Securities Exchange (ASX). To the extent that this document may contain forward-looking statements, such statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. This document is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. 69 70