#1Shotcrete at North Connex, Sydney (Photo supplied courtesy of North Connex) normet Agenda - Wednesday, 16 May 2018 PRESENTATIONS and Q&A: Introduction: 8.45-9.00am • Mike Kane, CEO & Managing Director Boral Australia: 9.00-11.15am • Joe Goss, Divisional Chief Executive, Boral Australia • Ross Harper, Executive GM, Cement • Wayne Manners, Executive GM, Major Projects • Brian Tasker, National GM, Property • Simon Jeffery, Executive GM, Queensland USG Boral: 11.30-12.45pm • Frederic de Rougemont, CEO, USG Boral Tony Charnock, Senior VP Asia Pacific, USG Boral LUNCH: 12.45-1.15pm SITE VISIT-Ormeau Quarry Depart 1.15pm, return 4.45pm Ormeau Quarry, Queensland INVESTOR SITE TOUR AND PRESENTATIONS Boral Australia and USG Boral Brisbane, Queensland 16 May 2018 BORAL BORAL 2#2BORAL Boral today: Performance, transformation & growth 1. Delivering strong results in Australia and maintaining leading positions • . Key supplier to Australia's booming infrastructure and strong residential and non-residential construction markets Reinvesting in valuable upstream quarry positions, low cost cement positions and downstream concrete & asphalt networks Solid margins with further improvements to come through excellence programs, innovation and price TODAY'S FOCUS: Excellence programs, challenges & opportunities, major projects, property, Queensland 2. Strong long-term growth platform with innovation-based competitive advantage in USG Boral • Leading plasterboard business in Asia, Australia and the Middle East Positioned well to respond to changes in demand cycles and competitive pressures TODAY'S FOCUS: Delivery against strategy, innovation, brand leadership, challenges & priorities 3. Delivering transformational growth in North America • Successful integration of Headwaters acquisition with substantial synergies Further growth through market recovery and innovation Addressing short-term operational issues Photo updates - from the diary of the CEO Boral North America - Oceanside, California Plant Optimisation is delivering substantial improvements in efficiencies Overall Equipment Effectiveness (OEE) and Reject Rates, Oceanside Metal Roofing Plant, California OEE 80% 70% 60% 50% 40% 7% OEE target of >70% - 6% 5% 369 4% 3% 30% 20% 10% Rejects to be <2% 2% 1% 0% 0% Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 ⚫OEE Reject Rate Reject Rate 3 BORAL Monthly OEE reporting implemented at end of 2017 In 4 months: OEE lifted from 22% to 52% reject rates reduced from 6.0% to 3.4% Plant optimisation expected to improve costs 4#3Boral North America - Oceanside, California We are aligning Oceanside's safety and production with our standards AFTER BEFORE Basecoat mixing area Glazing mixing area Traffic and pedestrian flow and guarding Boral North America – Okeechobee, Florida Plant Optimisation is delivering substantial improvements in efficiencies Overall Equipment Effectiveness (OEE) and Reject Rates, Okeechobee Roof Tile Plant, Florida OEE 80% 70% 60% 50% 40% 7% OEE target of >70% - 6% - 5% 4% 3% 2% Rejects to be <2% 1% 14 30% 20% 10% 0% 0% Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 ⚫OEE Reject Rate Reject Rate BORAL Monthly OEE reporting implemented at end of 2017 In 5 months: production doubled from December to March/April OEE lifted from 41% to 57% - reject rates fluctuating between 2.5% and 3.5% Plant optimisation expected to improve costs 6 5 BORAL#4Boral North America - Okeechobee, Florida Improved logistics and inventory management Boral North America - Okeechobee, Florida We are aligning Okeechobee's safety and production with our standards Process flow, access, safety and guarding improvements AFTER BEFORE 8 BORAL 7 BORAL#5Deer Park Quarry, Victoria Agenda BORAL AUSTRALIA Joe Goss, Divisional Chief Executive, Boral Australia BORAL Boral Australia is making strong progress on building a sustainable performance model Boral Australia Overview Joe Goss • Major Projects • • • Concrete Deliveries O High Street 10 Dec 20MPa 20mm Delivered In Transit 10/30m 10m' + 1.00pm ETA 5.0m Thick 30630 1.20pm Wayne Manners Cement Ross Harper Property Brian Tasker QLD Region Simon Jeffery TA Scheduled 2.00pm A 2.2002 Boral Concrete App launch BORAL 10#6Boral Australia A vertically integrated portfolio of construction material assets with an east coast focus Large national footprint (total number of operations¹) Vertically integrated operating model Quarries BORAL 78 Quarries 1 Bricks WA 225 Concrete 4 Roof tiles Cement4 Manufactured + -30% imported Aggregates and sand Bitumen BIA JV with Downer 41 Asphalt 9 Timber3 NT 2 6 Cement² 3 Masonry 1 20 1 -40-50% Quarry volumes sold internally to Concrete -5-15% sold internally QLD 62 1 ~50-60% 16 sold internally -35-55% Quarry volumes sold externally6 to Asphalt -35% of bitumen supplied by JV plants Concrete5 Asphalt 9 WA 12 SA 10 1 11 NSW/ 21 ACT 4 93 2 2 13 9 1. As at 30 June 2017 VIC/TAS 2. Includes cement manufacturing plant, bagging plant, lime plant, limestone quarry and depots 16 1 3. Includes 8 Boral Hardwood mills and 1 JV Softwood operation 46 4. Includes Boral's share of 1.5m tonnes of grinding capacity in 50% owned Sunstate Cement JV 1 8 5. Includes Boral Concrete, Roofing, Masonry plus 2nd brands Concrite (NSW), Alsafe (Vic) & Q-Crete (Qld) 6. Long-term historical averages End Customer Revenue Profile A diverse revenue¹ profile (%) by end-market, business and geography End-market Other Other engineering 2 8 Detached dwellings 16 RHS&B² 35 16 Non-residential 11 Multi- dwellings Bricks WA Business Timber Other 42 & Roofing³ Concrete placing 5 Cement 9 12 Alterations 21 & additions Asphalt Diversified end-market focused on infrastructure and residential 1. Based on 1H FY2018 split of Boral Australia external revenue 2. Roads, Highways, Subdivisions & Bridges 3. Bricks WA & Roofing includes Masonry revenues 11 Quarries 44 Concrete WA/NT VIC/ TAS/SA BORAL Geography 7 24 23 QLD 46 NSW / ACT Concrete sales externally focused with Quarries & Cement more internal East coast, metro market focused 11 12#7Organisational Structure Leveraging regional management structure with product & functional support BORAL Councils Quarries Concrete Asphalt Logistics Major Projects Boral Australia Joe Goss QLD Simon Jeffery NSW/ACT Greg Price Southern Reg. Lloyd Wallace WA/NT & BP1 Wayne Manners Cement Ross Harper Property Brian Tasker 1 Building Products Functional Executives Finance Marios Pasas Strategy & Dev. Grant Lediott Transformation Paul Dalton Customer Experience Julie Adamo Digital Solutions William Payne Human Res. & Safety Bill Fisher Procurement Matthias Fuchs 13 Delivering strong returns and capturing growth We are targeting to deliver continued revenue growth and margin improvements Growth focus Capturing volumes from higher demand Initiatives and Actions Supplementing fixed network with mobile plants . Upgrading quarry and downstream plant • Expanding asphalt crew and equipment national mobility . Optimising national cement sourcing and adding cement capacity Maintaining or improving our market position Expanding Project Management Office Targets BORAL Maintain or improve market position Secure our share of infrastructure projects Introducing new value added concrete products Implementing national network sales and operations planning Delivering better pricing outcomes Targeting more technical projects aligned with capabilities • Continuing focus on costs Continuing Operational Excellence initiatives (incl. procurement, OEE, productivity) Implementing Supply Chain Optimisation program Building organisational customer orientation Implementing Commercial Excellence Implemented two price increases p.a. since FY2016 Differentiating our customer experience, driving value for both customers and Boral ASP to offset cost increases and achieve a return on investment that exceeds cost of capital through cycle ~1-2% savings on cost base per year • & operational • Delivering quarry upgrade benefits: Deer Park, Orange Grove, Ormeau (late 2018) Completing alternative fuels investment at Berrima Building Vic portside clinker import and grinding facility . Leveraging digital innovation opportunities for cost and safety improvements Investments in excellence programs, improvement initiatives & innovation will be recouped as benefits continue ~5-10% Supply Chain cost optimisation (over 3 years) 14#8Culture and Capability Sustaining performance by investing in culture and our people Sustainable Performance Model Culture People & Leadership Safety Excellence Customer Excellence Operational Excellence Sustainable Performance BORAL Transforming our business through our people - strong leadership, people engagement and cultural alignment Culture, people and leadership underpins our investment in excellence programs and our zero one ten strategy 'Zero Harm Today' to our people and environment Number one for customers and employees 10% improvement Organisational health is critical in achieving sustainable high performance 15 Organisational Health Improving organisational health to drive sustained business performance Organisational Health Index Source: McKinsey & Company OHI Survey 70 BORAL Organisational health and culture of the business are critical to achieve sustainable performance 72 59 3rd quartile 2nd quartile Top quartile 2013 2015 2017 McKinsey Consulting has compiled years of studies from over 1,000 companies into an Organisational Health Index (OHI), which indicates that companies in the top quartile 'outperform' peers Our most recent 2017 survey¹ score has moved Boral Australia into the top OHI quartile with zero practices in the bottom quartile Survey results by business provide valuable insights into individual business culture and leadership perspectives within each business Outputs provide key areas of focus to continue to grow our people and improve performance 1. 2017 survey included 1,300 employees in Boral Australia surveyed and included front line team leaders and supervisors through to the senior leaders in our business 16#9Safety Excellence Safety remains our first priority • Safety Excellence ZEROHARM TODAY Management commitment and leadership Employee engagement in health, safety and environment responsibility: ✓ Engaging front line supervisors ✓ Strengthening behavioural programs ✓ Continuing contractor safety program Implementing site based environmental plans Division Recordable Injury Frequency Rate 26.6 21.0 LTIFR ■MTIFR RIFR 18.4 BORAL 13.1 23.8 11.2 10.7 RIFR 18.3 16.0 11.3 9.0 8.9 2.7 FY13 2.7 2.4 1.8 2.2 1.7 FY14 FY15 FY16 FY17 1H FY18 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). Customer Excellence Improving customer orientation and pricing practices BORAL • Customer orientation: Customer Excellence Helping customers to Build something great Identifying customer journeys by key segments to better understand customer needs and moments of truth across our customer lifecycle Designing improved customer experience built around core customer and business value drivers • Developing improved service models by segment, with success metrics Commercial Excellence: Setting prices to achieve a sustainable return While maintaining or improving our market positions, obtaining a fair price to achieve a return on investment that exceeds the cost of capital through the cycle . Building a commercial culture and training our sales team to leverage the value of our products and services Differentiating pricing by segment and product, built around the value we deliver / what customers value Improving access to sales data to allow faster and better decision making and oversight of our price and margins 17 18#10Customer Excellence Improving customer orientation and pricing practices Growing revenue and margins Building commercial culture . . Objectives Expanding margins through greater understanding of Boral's 'cost to serve' and customer behaviour Capturing pocket margin Institutionalising 'One Boral' behaviour / culture with clear behavioural guides Building sales staff competency through training programs and targeted recruitment • • BORAL Progress Experience roadmap validated with customers, works program commenced Launched SMS order confirmation and Concrete deliveries arrival time 'app' Achieving product margin growth targets for most businesses • 280 sales professionals accredited to Bronze status by June 2018 Building sales tools & systems Improve decision making via reporting and 'configure, price, quote' tools with customer relationship management • More frequent pricing reviews Pricing We have delivered price growth on the east coast • Configure Price Quote tool rolled out in Southern Region with the rest of the East Coast to be completed by July 2018 Implemented two price increases in FY18 Average selling price (ASP) increases required to offset inflationary cost increases • ASP impacted by a range of issues including geographic, segment and product mixes ⚫ Like-for-like (LFL) movements impacted by demand and competitive dynamics Case Study: Boral concrete prices, FY2014-18 ASP LFL FY14 ↑ Slightly Steady FY15 FY16 FY17 1HFY18 Steady Steady ↑ 1% ↑ 2% ↑ 4% 14% ↑ 3% 會1% 1HFY18 Boral concrete price movements BORAL 19 Strong housing activity and LNG projects ■ Competitive pressures in Qld and Victoria ■ Shift to infrastructure and Sydney Improved pricing outcomes in stronger ASP demand geographies reduced by softness LFL NT QLD WA SA ASP LFL NSW/ACT ASP LFL in WA and regional markets ■ Annual price increases " Market position recovery in some regions Price increase Progressive rollout of Commercial ASP LFL VIC/TAS Excellence program contributing Price decrease Implemented two price increases p.a. since FY16 ASP LFL Steady prices 20#11**Cost Base Material inputs, payroll and logistics make up -75-80% of our cost base Boral Australia's ~$2.9b cost base • Energy & fuel Repairs & Raw materials maintenance 7% 8% Other costs 7% 30% 24% Logistics 24% Payroll Source: Management accounts BORAL • • Materials costs: internationally traded clinker and bitumen prices increasing in line with Asian markets and exchange rate Payroll: average wage inflation of ~3% Logistics: higher subcontractor cartage costs in east coast markets due to higher demand to move tunnel material and supply underlying markets Energy and fuel: electricity & gas ~$20m higher in FY2018 (to be $110-$120m) and diesel usage ~100m litres p.a. East coast quarry capacity being supplemented with mobile contract crushing plants and sourcing materials from quarries outside metropolitan areas and external purchases Key quarry, concrete and asphalt investments will reduce future operating costs *Operational Excellence Continued success from Operational Excellence initiatives BORAL Cost improvement focus areas for FY2018 Procurement Raw materials 14% 15% Productivity 18% • 12% Payroll • Operational Excellence Cost improvement programs delivered around average $60-70m p.a. (~$250m since FY2015¹) Productivity based improvements from OEE², plant configuration and waste reduction Restructuring and labour right-sizing Other costs 21% . 20% Logistics Source: Internal estimates • Procurement initiatives . Ongoing supply chain optimisation Strategic and operational capital allocation Contributing to growing margins and offset cost increases 1. Cumulative benefits as presented at results from FY2015-1HFY2018, including restructuring, diesel, energy, procurement savings 2. Overall Equipment Effectiveness 21 22#12*Supply Chain Optimisation We are optimising our supply chain to lower costs and improve customer service BORAL We have ~2,500 road vehicles, including ~1,400 agitators and -1,100 tippers and tankers. We spend over $650m p.a. moving more than 100m tonnes of materials and finished goods by road, rail & ship Materials movements Upstream Wholesale Operations Logistics Downstream Operations Retail Logistics External sales Tipper Rail Hard rock & sand quarries Cement works Rail Tanker Customer Agitator Concrete plants Tipper Terminal Tipper & paver Customer Tanker Asphalt plants External sales . • • Using fleet to improve connectivity between 225 concrete plants, 78 quarries and 41 asphalt sites Standardising and automating processes that evolved organically across independently run businesses Building common tools and systems, as well as people capability, for a sustainable outcome Our 3 year journey into supply chain excellence commenced January 2018 Network optimisation will lower costs and demonstrate the true benefits of scale *Supply Chain Optimisation We are making progress on our multi-year supply chain program BORAL Objectives Progress • Optimising our Reducing 'costs to transport' and improving customer service / reliability • Completed internal and external benchmarking, identified 5-10% supply chain opportunity over 3 years network to drive margin growth common tools & Building processes Improving connectivity • • 1. Performing diagnostics to prioritise areas of opportunity - digital, people and process areas identified Standardising logistic processes and building supporting infrastructure System upgrades to automate despatch and S&OP1 investments Improving connectivity between logistics fleets and our large integrated operational footprint Leveraging network scale and reach Sales and Operations Planning • Recruited external supply chain resources Optimising national standard S&OP practices Building new reports with key logistics measures and weekly dashboards Piloting initial allocations improvements in Southern Region Piloting national concrete economic order sourcing model in SEQ 23 24#13Innovation Building a culture of customer focused innovation and commercialisation BORAL Driving margin growth through new products Commercialisation Focus on collaboration and partnerships • Objectives Continual review of product, service and business models to maximise the potential benefits of innovation Digital innovation to feature heavily Commercialising products centred on customer needs and materials science Includes early strength and low carbon concrete and recycled asphalt products Leveraging Boral's history of innovation, product development and technical capability Greater collaboration with USA and USG Boral as well as external partners Progress . In-house R&D and product innovation centres at Maldon and Baulkham Hills . New B/Hub 'idea incubator' site for agile development / commercialisation Launching Concrete customer apps and new website with enhanced mobility and e-commerce functions Launch of new products including Vantage® and AspireⓇ Strengthening technical sales capability Expanding links with Boral Innovation Factory in San Antonio • Partnerships established with leading Australian universities Financial Performance Solid earnings growth reflects successful progress on key strategies BORAL Reported EBITDA ($m) EBITDA return on sales (ex property) (ROS, %) Return on funds employed (ROFE, %) 551 535 523 24 474 46 28 448 8 28 16.0% 16.3% 15.1% 13.7% 15.9% 12.3% 11.2% 527 264 9 294 0 15.4% 1 14.6% 13.7% 13.5% 12.9% 11.0% 9.0% 489 495 466 420 3.7 3.8 3.6 294 3.3 3.3 255 ---- 2.7 2.6 2.4 1.6 1.8 FY13 FY14 FY15 FY16 FY17 1H Core ($m) 1H FY17 FY18 Property ($m) FY13 FY14 FY15 FY16 FY17 1H 1H FY17 FY18 Sales ($b) ROS (%) 24 2.4 2.4 2.4 2.5 FY13 FY14 FY15 FY16 FY17 1H 1H FY17 FY18 Net Assets ($b) ROFE (%) 26 25#14• *Outlook for FY2018 (as announced on ASX on 24 April 2018) Boral Australia BORAL Including Property, Boral Australia is now expected to deliver improved earnings growth with an expected increase of approximately 10-20% in FY2018 compared with FY2017, on both an EBITDA and EBIT basis. Earnings in Boral Australia were lower than we expected in the March quarter due to an unscheduled kiln outage at Berrima, continued challenging conditions in Western Australia, and a rain impacted Queensland market. However, a strong June 2018 quarter is expected from Boral Australia, especially if favourable weather conditions occur as they did in the June 2017 quarter. Boral now expects a total EBITDA contribution from Property in FY2018 of approximately $55 million to $65 million, with the sale of the Prospect site having progressed earlier than expected. Agenda Major Projects are an avenue for continued Boral Australia growth • Boral Australia Overview Joe Goss Major Projects Wayne Manners Cement Ross Harper Property Brian Tasker QLD Region Simon Jeffery Forrestfield Airport Link, WA (Photo supplied courtesy of Salini) BORAL 28 27#15Boral's Project Pipeline We have secured and are executing on a strong pipeline of projects Projects committed Bringelly Road Stage 1, NSW Pacific Hwy, NSW Toowoomba Second Range, Qld Warrego Highway stage 2, Qld Amrun Project, Qld NorthLink stage 1, WA Northern Beaches hospital, NSW NorthConnex, NSW Gateway Upgrade North, Qld Kingsford Smith Drive, Qld Logan Motorway, Qld Forrestfield Airport Link (Precast), WA Sydney Metro (City/SW precast), NSW Northern Road stage 2, NSW Boral material supply Quarries¹ Concrete Asphalt Cement1 Estimated completion ✓ ✓ ✓ 、、 ར ར、 2018 BORAL 2019 Projects currently tendering Albion Park Rail Bypass, NSW Brisbane Airport Runway, Qld Haughton River Bridge, Qld Inland Rail, Qld, NSW, VIC Smithfield Transport Corridor Upgrade, Qld Melbourne Airport Runway, VIC Lal Lal Windfarm, VIC Newell Hwy Upgrade, NSW QLD Outer Suburban Arterial Roads, VIC Pacific Hwy W2B, NSW Barangaroo Residential Tower, NSW Princes Hwy Upgrade, NSW Sunshine Coast Airport, Qld Northern Road stage 3, NSW 2020 Melbourne Metro (Precast), VIC WestConnex Stage 3, NSW Pacific Motorway, Qld West Gate Tunnel, VIC Northern Connector, SA Badgery's Creek Airport, NSW (pre-tender) 1. Includes supply through concrete or asphalt Note: Materials revenue from major road projects is typically 1-5% of project cost Major Project Success Infrastructure projects underway demonstrate Boral's capability to deliver 2016-2018 2017-2019 2017-2019 Northlink Stage 1 1 2 " New Perth road corridor Supply & place asphalt ■ ~180,000 tonnes Forrestfield Airport Link Concrete for tunnel & structures Fixed & Mobile concrete plants ■ ~180,000m³ concrete 2016-2019 4 BORAL Gateway Upgrade North Major Road upgrade Supply & place asphalt ■ ~500,000 tonnes 5 Nora Connex " 2016-2019 5 Kingsford Smith 3 Drive Upgrade Widening ~70,000kt fixed asphalt plant Other projects underway 2018-2019 Note the dates listed under each project are start date- completion date 6 NorthConnex Tunnel linking M1-M2 Integrated concrete supply through dedicated project plants ■ ~500,000m³ concrete 29 Logan Motorway Enhancement Works, Portion A Asphalt supply & place via fixed plant ■ -400,000 tonnes 30#16Boral Project Capability Boral continues to prove its ability to deliver on major projects For several years we have made statements around the importance of major projects, building Boral Australia's project management, execution and technical capability and winning projects Competitive strength from a track record of managing major projects Characies of a projects The complex Higher risk and appropriate morgins Resourc mul volume, Dition, to Early ongesuccess Value to our cu Prowin track recor Spilly BORAL Loading contracting capacity Strond integrate Technical supery Gay ulence Zulam Today BONAL WINS A THE TACK TOOWOOD RANGE Australia's infrastructure divestment wave Grilltioned to deliver maj j Manaj Hom Cartacting Product Cound links Expension People Capoblity REINFORCING OUR SYDNEY CONCRETE NETWORK BORAL Technical Capability Success in Precast projects Case study: precast concrete supply to line tunnels for metro rail projects Technical investment • . • Early concrete solution based investment Technically complex solutions developed Case study: Precast rail projects Forrestfield Airport Link, Perth • BORAL 180,000m³ concrete 54,000 segments and 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 Sydney Metro, Marrickville . Deploying equipment and people nationally . Demonstrating our strong safety management and chain of responsibility Fire testing Flex testing Slump testing • stations (9,000 rings) 2017 to 2019 • 140,000m³ concrete • 99,000 segments • 2018 to 2019 Melbourne Metro, Deer Park 90,000m³ concrete • 50,000 segments • 2018 to 2020 31 32#17Project Pipeline - Medium Term We are in the earlier stages of a strong infrastructure cycle in key east coast markets BORAL Major transport infrastructure construction projects 1,2 (A$b) 17 Albion Park Bypass Forecasts AdeLINK Light Rail 16 Value of Work Done by Year (Years Ended June) Infrastructure pipeline is east coast dominant Logan Northlink Canberra Light Rail Rail Revival Regiondow Balla Vic Perth Metronet Rail Level Crossing Removal Melb. Inland Rail 15 14 • Galllee Railin Projects are close to Melbourne Metro Rail Cross River Rail 13 integrated Boral operations 12 Gold Coast Light Rail 11 Rio Tinto, Bunbury w Legacy Way NORRA-QLD BHP Billiton Pilbara Rail Fortescue Pilbara Rail South West fo Wiggins Isand Regional Rail Link VIC Rail QLD Moreton Bay Rail North De Roy Hill EastLink 5thn Hume NorthConnex Hunter Expressway 2006 ney Clearways Ipswich Mwy Clem7 Airport Link Bris. M80 Melb Peninsula Link M2M Upgrades Webb Dock Pacific Highway Upgrading City Link Tula widening 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1. Source: Macromonitor, Construction Materials forecast, February 2018 estimates 2. Chart prepared exclusively by Macromonitor based on publicly available data. Boral has not independently verified either the historical data or forecasts. Chart shows financial years and projects with total value >A$500m only 3. Forecast spending represents Macromonitor's indicative estimation of likely spending based on currently available information. There can be no assurance that actual results will be as forecasted and such differences can be material. There can be no assurance regarding the proportion of forecast project spending that represents requirements for which Boral is a potential supplier, or that Boral will be successful in generating revenue from any of these projects 33 y Metro ney Me Sydnewest Sydney Metro - City & Southwest 10 Boral Project Management Office aligning strategy 9 alde Sydney Light Rail 2nd Range Coding Ping Ri mdorway West Gate Tunnel - Melb. Western Sydney Roads WestConnex Avoid 'winners curse' by 8 7 NC Link Melbourne 6 5 ensuring capacity to service both major project demand and underlying core markets 4 3 2 Bruce Highway Upgrading 1 0 2020 2021 2022 2023 Project Pipeline - Longer Term The major project pipeline post 2022 is building with government announcements 'The government's 10-year national infrastructure plan' 2018 Federal budget $220 million $1.05 billion $150 million Outback Way $944 million Perth stan $160 million $560 million $100 million e $100 million $3.3 billion Bran Highway Newt. Prities CoC Section (800 $1.2 billion $170 million by chang 5100 million Highway $220 million $50 million Sl $177 million $390 million Rela $1 billion Par Mature any test section $300 million $971 million Dypes $400 million $155 million Up to $5 billion $132 million Charle pa $225 million $1.75 billion arthst $475 million $140 million BORAL Key projects announced in NSW and Vic where Boral has a strong integrated position Projects are in early stages and indicate a continued long-term pipeline of major projects • Federal and State government budgets include funding for large infrastructure projects • Boral will engage early to build solutions utilising our capability to differentiate and effectively compete Source: The Australian Financial Review, 10 May 2018 (First Published Business Insider Australia, Sarah Kimmorley, May 8 2018) $400 million $461 million BO 34#18Products Assets • Agenda Boral Cement continues to be a highly profitable part of Boral Australia . Boral Australia Overview Joe Goss Major Projects Wayne Manners Cement Ross Harper Property Brian Tasker QLD Region Simon Jeffery Resource derived fuels loader for the Berrima Kiln Boral Cement Portfolio A strong portfolio of businesses that source and supply a wide range of products Berrima NSW Maldon NSW Waurn Ponds Vic Sunstate JV Qld BORAL Marulan NSW DeMartin & Gasparini, NSW Clinker & cement Clinker (1.5mt) - fully utilised kiln 2 mills (1.6mt)1 Rail link to CBD Specialty cements 2 mills (900kt)1 Berrima clinker Packaging plant Rail link to Berrima SL & HE cement Grey cement " 2 mills (750kt)1 " Imported Clinker transported inland Multiple cements 3 mills (1.5mt)1 50:50 JV with ABL Import clinker Portside facility Dry mix capability " Grey & O/W Clinker Cement: SL & GP Slag Specialty & blends Grey cement: GP, HE " " Fly ash via FAA Blends at Somerton terminal Bagged products Grey cement: GP, HE & SL Slag, fly ash, O/W Blends & Bagged " Limestone & Lime Concrete Placing 19 concrete pumps " 30 concrete placing tower booms >80 years limestone reserves 3.3mt of limestone quarried in FY18 Lime kiln (130kt) Limestone Lime Manufactured sand 1. Denotes grey equivalent; Shrinkage Limited (SL); High Early Strength (HE); Off-White (O/W); General Purpose (GP); Adelaide Brighton (ABL); Fly Ash Australia Joint Venture (FAA) " NSW focused Concrete pumping & placing Contracting packages 36 BORAL 35#19-70% of National Cement Demand¹ AUD: Clinker Importation Current market conditions are favourable for importers Import clinker prices and volumes Ex Asia clinker prices (CIF A$)1 Clinker import volumes as % of total usage² FY05 11% FY06 11% FY07 14% FY08 19% FY09 18% FY10 18% FY11 23% FY12 20% FY13 23% FY14 34% FY15 37% FY16 39% FY17 38% USD3 0.75 0.75 0.79 0.90 0.74 0.88 1.00 1.04 1.02 0.91 0.83 0.73 0.75 0.77 -23 1. Management estimates 2. Source: Cement Industry Federation Survey 2018 3. Source: Reserve Bank of Australia FY18E Import Trends • • Historically clinker imports increased as local kilns closed and excess Asian clinker export capacity emerged Recent FOB clinker prices trending up due to Chinese regulations reducing export capacity Bulk freight increasing from recent lows Import Capability An alternative to importing bulk cement is importing clinker which Boral favours ⚫ Clinker importation allows better quality management and product flexibility Capability and scale is critical to access deeper clinker markets and lower costs • Boral has developed deep supply chain capability importing ~1mtpa of clinker Tailored National Cement Sourcing Models Cement sourcing models across Australia are optimised to match local conditions Boral Cement sourcing models Area Assets Model Rationale Low kiln costs and rail link maintains competitiveness Imported clinker is lower cost cement source Cement industry map Australian market ~10mt² Darwin NSW Berrima Maldon Clinker manufacturer ~1.5mtpa Asian clinker Port Hedland VIC Waurn Ponds importer ~0.6mtpa SEQ Sunstate (50% JV with Asian clinker ABL) importer ~0.3mtpa (Boral share) Imported clinker is lower cost cement WA (10%) source Local Other areas supply contracts Bulk cement purchaser from local sources 0.2-0.4mtpa Lower scale Boral usage combined with competitive local suppliers Munster BGC NT (1%) Broome North Qld (9%) BORAL Kiln Mill Terminal 40000 Boral CA ABL/ICL Other Townsville Gladstone SA (7%) Angaston Berrima Maldon SEQ (13%) NSW/ACT (33%) Wagners Bulwer Island Sunstate (50% JV Boral and ABL) Newcastle Kooragang Glebe Island Port Kembla Birkenhead Denotes that Boral has a fixed cement position VIC (25%) Melbourne (50% JV CA and ICL) Boral Australia periodically reviews the long-term sustainability of sourcing models 2. Cement Industry Federation Survey 2018 1. The % against each state refers to proportion of total FY18 Australian cement volume and sourced from Macromonitor. Construction Materials Forecast, February 2018 Waurn Ponds Railton TAS (1%) 38 37 BORAL#20Flexible East Coast Cement Network NSW cement operations are key to Boral's network flexibility Clinker sourcing Product range Supply chain BORAL Vessel discharge Berrima costs below import parity with strong operational excellence focus ■ Boral imports clinker into Port of Geelong and Brisbane with optionality in Port Kembla ■ Off white manufacturing and slag processing capability Maldon mill upgrade ■Maldon mill upgrade enables product supply optimisation ■ Maldon blend products including slag and off white Package products targeting DIY / builders segment Fly ash sourced from FAA JV Cement train Berrima & Maldon rail linked for low cost delivery to metro ■ NSW rail network allows economic interstate supply Road and rail is used to optimise the supply chain of our integrated business Securing Berrima Cement Position Building on our strong cost position and actively managing our energy position Berrima Cost Base Berrima Cost Base Split Electricity Wholesale Electricity Prices Other Raw materials 120 22% 100 25% Kiln 17% Fuel $/ MWh 60 40 17% Payroll 20 13% 6% Maintenance 22 80 QLD VIC NSW Kiln Fuel Alternative Fuels BORAL Electricity Source: Internal Estimates Energy is 30% of Berrima costs ■ Raw materials, payroll and maintenance the majority of costs ■ Continuous improvement will offset anticipated future cost increases FY12 FY13 FY14. FY15 FY16 FY17 YTD Source: AEMO as at 31 March 2018 Electricity prices have risen in NSW, QLD and VIC ■ Berrima electricity exposure actively managed including shifting production to low cost time of day Under construction alternative fuel loader at Berrima using resource derived fuel (cellulose product) in the clinker kiln ■ Boral will shortly complete a -$10m upgrade to allow alternative fuels to substitute coal usage up to 30% Optimising Marulan lime kiln fuel by using less gas and more coal 39 40#21Building a Lower Cost Victorian Position Reinvestment offers an opportunity to embrace new products Current 'Inland' Operations Future 'Portside' Operations BORAL • • • Boral supplies VIC from its inland Waurn Ponds facility which grinds imported clinker High cartage costs from trucking clinker ~20km from Geelong Port to Waurn Ponds High handling costs from ship discharge to truck and clinker store to mills at Waurn Ponds • • Boral proposed investment of up to $130m in new 1.3mtpa¹ cement grinding facility at Geelong Port, EPA approval secured, finalising other approvals Conveyor loading from ship to clinker store to mill eliminating transport and handling costs • Growth capacity to capture project activity, future market growth and support broader network • Produce a lower cost slag based product 1. Cement and Slag Agenda Property pipeline will continue to provide ongoing earnings opportunities • Boral Australia Overview Joe Goss • Major Projects Wayne Manners Cement Ross Harper Property Brian Tasker QLD Region Simon Jeffery Waurns Ponds Cement site in VIC 41 BORAL 12 42#22Solid track record of earnings contribution Strong earnings with historical annual EBIT of circa $30m Property EBIT1, A$m BORAL 54 47 32 28 28 12 8 46 28 24 55 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 EBIT earnings secured through a combination of multi-year developments and smaller sales of surplus land Portfolio rationalisation, asset relocations and operational consolidations have released valuable land opportunities Sales values are optimised through a variety of value added options including the rezoning of land for residential or industrial purposes Earnings from property expected to continue to average -$10m to $20m p.a. over the near term 1. Excluding signficant items. FY2008 - FY2010 includes earnings from significant multi-year developments at Moorebank and Nelsons Ridge, and initial earnings from the Landfill business. FY18 figure is an estimate reflecting Boral expectations, in line with Boral's guidance in ASX announcement 24 April 2018 Land management and development cycle Boral Australia manages a large land bank (400+ properties) Key activities Securing site tenure and related government approvals Facilitating stakeholder engagement Managing leases and property administration Developing future end-use option Key challenges Securing government approvals for Locate New need site identified Development approval Capital approval Operational Life Develop or sell Land Disposal Land use approvals • greenfield, upgrades or rezoning Ongoing urban encroachment impacting existing locations Expanding development timeframes End Use AL $ Residential, Employment, Other 43 BORAL planning Operational End use strategy Rehabilitate site 44#23Prospect Masonry Sale Announced A case study in well-executed long term land development strategy Prospect Masonry, NSW Property outline indicative only BORAL 12.9 ha land area Former Boral Masonry site at Clunies Ross Street in Greystanes Sale plan commenced in May 2014 • Deal executed / announced in April 2018 Proceeds of $60m giving an EBIT contribution of $56m in FY2018 Sale timed to capture strong market with the sale proceeding quicker than expected Final land sale of the broader Greystanes Estate, which included Nelsons Ridge, 'The Quarry' industrial park and Northern Employment lands, delivered total revenue exceeding $650m over a decade plus Property development and divestment pipeline We have identified significant potential development and divestment opportunities Approx. proceeds timing FY2018 FY2021 Tactical land sales Prospect, NSW $60m in FY18 announced Potential development pipeline FY2024 BORAL FY2027+ $40m+ pipeline includes: NSW - Armidale, Wingham, Kiama, Bombo | WA - Jandakot | SA Reynella, Stonyfell, Para Hills Donnybrook, Vic Potential $200m+ (to ~2040) Waurn Ponds, Vic Potential $100m+ (rezoned) Scoresby, Vic Potential $100m+ (unzoned) Penrith Lakes (PLDC), NSW Timing and contribution being evaluated With Boral's deep property land bank, the pipeline will continue to refresh and build 45 46#24Future potential development opportunities Boral has identified several large near term opportunities, all in Victoria Donnybrook, VIC Waurn Ponds, VIC Scoresby, VIC Boral DONNYBENOK site Olivine site 60ha 1,120 ha BORAL ■ 340 ha total land area Adjoins Mirvac Olivine estate " Boral land rezoned in Nov 2017 Subject to current negotiations ■ Potential earnings of $200m+ over 20 years ■ 1,020 ha land area with rehabilitation required post cement operations Designated growth corridor adjacent to Armstrong Creek SW of Geelong ■ Land rezoning strategy underway with land value directly related to rezoning ■ Potential rezoned land value $100m+ " 84 ha parklands and 87 ha proposed residential infill land Clay pits rehabilitation underway with manufacturing site leased until 2025 Rezoning strategy underway ■ Potential 'unzoned' land value $100m+ Agenda Strengthening and maintaining our position in South East Queensland (SEQ) • Boral Australia Overview Joe Goss • Major Projects Wayne Manners Cement Ross Harper Property Brian Tasker QLD Region Simon Jeffery Gateway Bridge, Qld BORAL 47 48#25Queensland Region Footprint Boral has a large integrated footprint supplying key markets in Queensland QLD Region major areas BORAL Queensland Region External revenue of -$0.8b ~3,700 FTEs Markets Cairns Characteristic QUA CON ASP CEM Tourism related ✓ ✓ Mt. Isa / Weipa Mining activity ✓ ✓ Townsville Growing regional centre ✓ ✓ Mackay Mining related growth ✓ ✓ Rockhampton Mining related growth ✓ Operating footprint (number of operations¹) 20 Quarries 16 Asphalt Gladstone LNG corridor ✓ ✓ Bundaberg Population growth ✓ ✓ ✓ ✓ Surat Basin Coal-seam gas corridor ✓ ✓ ✓ ✓ 62 Concrete 1 Cement SEQ --Toowoomba Major metro market Growing regional centre ✓ ✓ ✓ ✓ ✓ ✓ 1. As at June 2017 QUA: Quarries CON: Concrete ASP: Asphalt CEM: Cement (Sunstate JV) 49 Queensland Construction activity strengthening Demand is shifting from residential towards infrastructure Other engineering', VWD A$ billions 50.0 40.0 30.0 20.0 10.0 10.0 8.0 6.0 QLD Region¹ construction activity VWD A$ billions 4.0 2.0 70.0 60.0 RHS&B12, VWD A$ billions. 10.0 50.0 8.0 6.0 40.0 4.0 2.0 30.0 8.0 6.0 4.0 2.0 1990. 1992 866 2012 20.0 10.0 8.0 Non-residential1, VWD A$ billions 6.0 4.0 2.0 1990 1992 1998 2016 2016 2018 2016 2020 2020 20221 2022 10.0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016] 2018 2020 2022 2.0 1.5 1.0 066 Z66 1994 BORAL Detached dwellings¹, VWD A$ billions 1990 1992) 1994 1996 1998 2000 2002 2004 866 Multi-dwellings¹, VWD A$ billions 2000 2002 2004 2000 2008 2010 20121 2014 2016 2018 1. Macromonitor (February 2018) and BIS Oxford Economics (March 2018) 2. Roads, highways, subdivisions and bridges Note charts are for financial years and have been based on 2015/16 dollars unless otherwise noted 0.5 1990 1992 +661 Alterations & additions¹, VWD A$ billions 1996 1998 2000 2002 2004 2006 2008 2010 2012] 2014 2016 2018 2020 2022 50#26Strong QLD Materials Demand Outlook Resilient concrete demand and rising asphalt activity with an SEQ focus QLD Quarries Demand (mt) 80 QLD Premix Concrete Demand (mm3) QLD Asphalt Demand (mt) 4.0 8 7 6 5 4 3 2 1 3.5 Other QLD 3.0 2.5 2.0 1.5 SEQ 1.0 0.5 70 Other QLD 60 50 40 30 SEQ 20 10 BORAL Other QLD SEQ 1= 22 2222 Source: Macromonitor Construction Materials Forecast, February 2018; financial years ending 30 June ■ Recent concrete growth heavily weighted to residential and non residential building activity Lifestyle and affordability factors driving higher migration and underpinning future fundamentals 2018 ■ Strong asphalt demand growth particularly in SEQ and Toowoomba Major project and increased maintenance spend driving demand forecasts 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ■ Quarries demand linked to concrete and asphalt activity Major road activity contributing to higher quarry volumes " Major SEQ Initiatives Maintaining and strengthening Boral's SEQ position Redbank Concrete Plant Toowoomba Asphalt Plant SEQ Quarries BORAL 51 Plant replacement with improved access to growth corridor SW Bris. Capital light solution of ~$6m using freehold land & surplus LNG plant Completion in Oct 2017 with site consented 24/7 and large storage improves supply chain efficiencies ■New $10m plant and depot will address current site encroachment Completion by late 2018 with capacity of 140ktpa (from 30ktpa) ■ Lower cost plant with efficient heating costs, reduced waste and maintenance costs Improving SEQ quarry network efficiency and capacity position with Ormeau investment Assessing other network options to build competitive long term position Balancing natural and manufactured sand positions 52 62#27BORAL Ormeau Quarry Reinvestment Upgrading Ormeau Quarry strengthens Boral's Brisbane position Quarry Characteristics Processing Plant Boral Network Solution ! Brisbane North Narangba Petrie Brisbane West Brisbane South Purga Yatala Ormeau Stone extraction first commenced in the 1980s 40+ years of reserve life Higher quality reserves suitable for high specification aggregates and full range of roadbase products Plant replacement cost of -$55m with completion by end of FY2019 Increased production capacity from ~0.5mtpa to ~2.0mtpa ■ 11 hours/6 days per week consent to process and sell material Close to arterial roads, enabling supply into CBD, western and southern Brisbane growth corridors ■ Reduce overall production costs with a large scale, single production plant at Ormeau Concrete Product Video Presentation Boral Australia has developed a suite of innovative concrete designs Vantage® Concrete A flowing concrete that compacts under its own weight (self compacting) and allows improved placing in difficult conditions Aspire® Concrete A high strength concrete that maximises floorplans in commercial and high-rise buildings and increases productivity EnvisiaⓇ Concrete BORAL A lower carbon concrete with excellent performance benefits including low shrinkage, high early strength and durability Trial concrete pour at Ormeau Quarry High rise structures/lift cores are suitable for Aspire Envisia testing in QLD for precast use This promotional video highlights the innovation behind Vantage®, Boral's self compacting concrete, and is accessible on Boral's website www.boral.com 53 54#28Questions 0328 nhs BORAL TR211 3 CC328 Concrete and Asphalt demand Boral is benefiting from industry demand that is forecast to remain at high levels Premix Concrete demand forecast ('000m3) Source: Macromonitor as at February 2018 Asphalt demand forecast ('000t) Source: Macromonitor as at February 2018 30,000 25,000 20,000 15,000 10,000 5,000 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Forecast volumes FY17 FY18f FY19f FY20f FY21f 12,000 WA/NT 10,000 VIC/TAS/SA 8,000 6,000 NSW/ACT 4,000 2,000 QLD FY13 FY14 Forecast volumes FY15 FY16 FY17 FY18f FY19f FY20f FY21f WA/NT BORAL VIC/TAS/SA NSW/ACT QLD Forecast growth in RHS&B¹ and non-residential building to offset a decline in multi-residential activity keeping demand at historically high levels 1. Roads, highways, subdivisions & bridges National growth in roads infrastructure keeping demand at historically high levels with QLD and VIC responsible for near term rises 56 BORAL#2910,000 8,000 6,000 4,000 2,000 FY12 FY13 FY14 FY15 FY16 FY17 FY20 Southern Region (VIC/TAS/SA) 12,000 CONCRETE ~(0.4)% CAGR¹ 4,000 ASPHALT -6.1% CAGR1 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 40 30 20 10 FY00 FY02 FY04 FY06 - 50 Non-residential², VWD A$b FY08 FX10 FX12 FY14 Activity by Segment Revenues are derived from various market segments RHS&B2,3, VWD A$b Detached dwellings5, # starts 225051 120,000 80,000 External revenue by end-market¹, % 40,000 Other Detached dwellings 16 Other engineering4, VWD A$b Multi-dwellings5, # starts 125 120,000 Multi- 100 35 RHS&B3 11 dwellings 80,000 75 50 40,000 25 FY 16 12 Alterations & additions 16 Other engineering Non-residential 1. Based on split of 1H FY2018 Boral Australia external revenues 2. Source: ABS, BIS Oxford Economics and Macromonitor forecasts, constant 2015/16 dollars. Note charts have been based on 2015/16 dollars unless otherwise noted 3. Roads, highways, subdivisions and bridges 4. Source: ABS, Macromonitor forecasts, constant 2015/16 dollars 5. Source: ABS Jan-18 data release, BIS Oxford Economics, Macromonitor and HIA forecasts Activity by Geography Well positioned to take advantage of historically high levels of activity FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY 19 FY20 FY21 WA/NT QLD CONCRETE ~(0.6)% CAGR1 ASPHALT ~(0.7)% CAGR1 CONCRETE 5,000 2,000 Boral Australia revenue² ~(1.1)% CAGR1 8,000 5,000 4,000 1,500 6,000 4,000 3,000 1,000 by region, % 3.000 4,000 2,000 2,000 1,000 500 2,000 1,000 3,000 2,000 1,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Compound annual growth rate from FY2017 to FY2021 forecast by Macromonitor, February 2018 (Concrete in '000 m³ and Asphalt in '000 tonnes) 1. 2. Based on 1HFY2018 split of Boral Australia external revenue 10,000 8,000 6,000 4,000 24 FY12 FY13 FY14 FY16 FY17 FY18 FY19 FY20 23 46 NSW/ACT 12,000 CONCRETE ~(1.0)% CAGR¹ 3,000 ASPHALT -3.8% CAGR¹ 2,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 2,000 1,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 58 FY21 FY12 FY13 FY14 FY15 FY16 FY17 ASPHALT -7.3% CAGR1 FY18 FY19 FY20 FY21 BORAL 12.5 10.0 7.5 5.0 2.5 FY00 FYOO Alterations & additions², VWD A$b FFY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16 FY18F FY20F FY22F 57 BORAL#30USG BORAL Brisbane, Queensland 16 May 2018 USG BORAL INNOVATION INSPIRED BY YOU.™ USGBoral.com 59 Plasterboard Ceilings Interior Finishes Metal Framing Substrates AN ATTRACTIVE GROWTH PLATFORM USG BORAL INNOVATION INSPIRED BY YOU." PART 1: Frederic de Rougemont, CEO, USG Boral 1. Safety performance 2. Delivering on our JV strategy 3. Building on our position PART 2: Tony Charnock, Senior Vice President Asia Pacific, USG Boral 4. Asia Pacific (Australia / New Zealand and Indonesia) - country dynamics and opportunities 60#31SAFETY PERFORMANCE Employee and contractor RIFR1,2 (per million hours worked) ■LTIFR ■MTIFR 5.3 RIFR 4.3 4.4 4.2 3.7 4.4 3.0 2.9 3.3 333 2.9 4.3 3.0 • USG BORAL INNOVATION INSPIRED BY YOU." RIFR of 4.3 and LTIFR of 1.2 broadly steady on FY17 Focusing on lead indicators to further improve safety outcomes Safety Safety conversations: collaborating, innovating and owning change around safety Growing usage of CCTV reports Program underway in all plants leading to a better understanding of 'at risk' (UPSET) conditions Safe START program being piloted at Camellia site Near misses conversations CCTV reviews 1.2 1.3 0.9 1.1 1.2 28,551 YTD FY18 742 YTD FY18 1,089 YTD FY18 0.8 FY13 FY14 FY15 FY16 FY17 YTD FY18 42,545 in FY17 1,077 in FY17 1,366 in FY17 1. Recordable Injury Frequency Rate (RIFR) per million hours worked is made up of Lost Time Injury Frequency Rate (LTIFR) and Medical Treatment Injury Rate (MTIFR). Totals may not add due to rounding 2. RIFR, LTIFR and MTIFR per million hours worked includes employees and contractors in 100%-owned businesses and all joint venture operations 3. YTD FY18 refers to 9 months to 31 March 2018 DELIVERING ON OUR JV STRATEGY Frederic de Rougemont CEO, USG Boral 61 62 62#32DELIVERING ON OUR JV STRATEGY USG BORAL INNOVATION INSPIRED BY YOU." Leveraging USG Boral's partnership to deliver revenue and earnings growth, including >US$50m of synergies in <4 years Successful adoption of SheetrockⓇ leading to maintain / grow strong positions with price premium ✓ Expanded product portfolio delivering enhanced revenue and earnings ✓ Leveraging leading manufacturing platform to meet growing demand ✓ Driving innovation in building products and systems and accelerated adoption of plasterboard in partitions and walls ✓ Delivering customer excellence and leading solutions REVENUE AND EARNINGS GROWTH EBIT A$m Pre-JV1 CAGR³ p.a. 29% 102 83 141 179 USG Boral² 217 USG BORAL INNOVATION INSPIRED BY YOU." Underlying revenue A$m CAGR³ p.a. 11% 1,397 1,478 1,268 1,091 735 815 Impacted by $8m in one-off costs FY14 FY15 FY16 FY17 1H FY17 1H FY18 117 113 ROFE4 (for Boral) % 11.6 10.7 11.1 9.4 7.4 6.1 FY13 FY14 FY15 FY16 FY17 1H 1H FY14 FY15 FY16 FY17 1H FY17 1H FY18 FY17 FY18 Delivering above Boral's cost of capital since FY17 1. Boral Gypsum EBIT excluding significant items 2. USG Boral underlying EBIT excluding significant items 3. Compound annual growth rate from FY14 to FY17 4. Based on Boral Gypsum / USG Boral divisional moving annual total EBIT (excluding significant items) on divisional funds employed (segment assets less segment liabilities) at period end 64 63#33DRIVERS OF PERFORMANCE • Revenue CAGR of 11%1 p.a. • Significant EBIT margin expansion Successful adoption of Sheetrock® brand- strengthening our position with price premium • • Synergies: revenue, adjacent products and costs Cost management Operational excellence • In Australia and Korea: enhanced product and customer mix - underlying market growth - robust pricing 1. Compound annual growth rate from FY14 to FY17 2. Underlying EBIT (excluding significant items) to revenue EBIT margin² % USG BORAL INNOVATION INSPIRED BY YOU." Excluding $8m in one-off costs, EBIT margin¹ would have been 14.8% 15.9 14.7 13.9 12.8 11.1 9.3 FY14 FY15 FY16 FY17 1H FY17 1H FY18 STRONG GEOGRAPHIC POSITIONS USG BORAL INNOVATION INSPIRED BY YOU." Plasterboard share1 % Revenue contribution from largest to smallest 50-55 45-50 35-40 4-6 40-45 20-25 Australia South Thailand China Indonesia India Korea 40-45 60-652 45-50 Vietnam Malaysia/ Philippines Singapore Total PLB demand¹ (m m²) -190 -300 -90 ~2,800 -100 -70 -60 -30 -20 1. USG Boral management estimates for FY17. Note that China 4-6% is based on total China demand however USG Boral's target segment in China is high-end segment only 2. Combined plasterboard share across Malaysia and Singapore 65 66#34PRICE • • • Price benefiting from increasing contribution from SheetrockⓇ and technical board - SheetrockⓇ premium achieved Strong economic conditions and construction activity in developed markets delivered price growth Competitive price pressures in Thailand, Indonesia and Vietnam Significant price growth in China in 1H FY18 due to temporary supply constraints and waste paper inflation Plasterboard ASP1 - pcp USG BORAL INNOVATION INSPIRED BY YOU." Australia Korea Thailand China Indonesia FY14 FY15 FY16 FY17 -> 會 -> -> 1H FY18 Growing contribution from SheetrockⓇ % of plasterboard revenue SheetrockⓇ (premium) Core board 9 79 100 91 79 65 57 • Cost inflation partially offset through price and optimising product mix 43 35 21 FY14 FY15 FY16 FY17 1H FY18 1. Average selling price EXPANDED PRODUCT PORTFOLIO • Customer focused full product suite / system solutions Growing loyalty of our customers to our brand (distributors, subcontractors, contractors) Enhancing revenue and earnings USG BORAL INNOVATION INSPIRED BY YOU." Product sales mix¹ % 10 8 8 60 7 7 SecurockⓇ Fiberock® Glass-Mat Sheathing SheetrockⓇ 43 (premium) 57 Metal ceiling Core board 70 Standard board 1. Based on split of 1H FY18 underlying revenue for USG Boral 2. Includes ceiling tile and ceiling grid 3. Other includes gypsum, cornice, others Plasterboard ⚫ Ceilings² ●Metal stud ● Compounds and plaster Contracting ⚫ Other³ 30 Technical board 67 68#35• 1. 2. 3. 4. LEADING REGIONAL FOOTPRINT 14 countries 49 ~3,200 employees 617m m² plasterboard manufacturing operating sites Adding 30m m² board capacity capacity4 23 plasterboard lines External revenue² % 11 Australia South Korea 11 36 ● Thailand 6 • Indonesia 12 ● China 24 • Other USG BORAL INNOVATION INSPIRED BY YOU." New warehouse completed 3 South Korea 32 China 4 8 India 1 1 3 2 1 Vietnam + Middle East Adding 17m m² board capacity MANUFACTURING FOOTPRINT (total number of operating sites³) 18 Plasterboard plants 3 Gypsum mines 28 Other plants4 Thailand 3 Malaysia 2 2 Indonesia Australia mineral fiber ceiling tile, metal ceiling grid, metal products, joint compounds, mineral wool and cornice production Excludes additional capacity planned in India and Vietnam Based on 1H FY18 underlying revenue for USG Boral As at April 2018. Certain manufacturing facilities and gypsum mines held in JV with third parties Production of plasterboard and other products may be at the same physical location CAPACITY UTILISATION REFLECTING GROWING DEMAND Average capacity utilisation of 82% across USG BORAL INNOVATION INSPIRED BY YOU." Plasterboard capacity utilisation and production volume³ • network in 1H FY18, up from ~76% in FY171 Plasterboard production volume CAGR² of 6% p.a. (including Aus/NZ) and 7% p.a. in Asia (excluding Aus/NZ) since FY07 m m² 700 650 600 550 500 450 400 350 300 250 200 1. Based on total production capacity at period end and annualised for 1H FY2018 2. Compound annual growth rate 3. Includes plasterboard and gypsum ceiling tile volumes Capacity utilisation (RHS) Production volume. Capacity at period end FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 1H FY18 90% 85% 80% 75% 70% 65% 60% NZ 70 69#36BUILDING ON OUR POSITION SUSTAINING LEADERSHIP IN AUSTRALIA AND KOREA Continue growing high margin sales with innovative products and solutions Sheetrock 2.0 Technical board Ensemble TM Acoustical Drywall Ceiling • Market segmentation to deliver higher margin Commercial sector buildings supplied with more technical products and adjacent solutions (acoustic ceilings, building facades) Focus on customers valuing the product range Strengthen distributors' network Ensemble TM USG BORAL INNOVATION INSPIRED BY YOU." 71 72#37NEXTGEN 2.0 USG BORAL INNOVATION INSPIRED BY YOU." • USG Next Generation Sheetrock - providing opportunities for USG Boral - USG launched Sheetrock® Brand EcoSmart Panels in USA in March 2017 • - Lighter weight with stronger sag performance Strong sustainability attributes: lower carbon emissions and less water used in manufacturing Initial trials completed at Pinkenba In the next 12 months More work required to optimise technology to achieve preferred product differentiation - Assessing customer value proposition - Assessing opportunity of reducing energy and gypsum costs ACCELERATE WALLBOARD PENETRATION IN EMERGING MARKETS USG BORAL INNOVATION INSPIRED BY YOU." EasyFinish TM-Wall Lining and Partition Systems • • . • Accelerate plasterboard adoption in wall partitions as step towards cavity walls in emerging countries Convert cement render system to plasterboard lining system Market test phase completed in Thailand and Indonesia Broader rollout to China, Malaysia, Philippines and Winning in the partition segment by sticking plasterboard on traditional masonry walls USG BORAL Customised plaster replacement systems designed to offer a solution to site finishing application and performance issues Vietnam 73 74#38EASYFINISH™M OPPORTUNITY TO CONVERT CEMENT RENDER TO PLASTERBOARD ACROSS SE ASIA Plasterboard vs cement render demand¹ mm² ~645 USG BORAL INNOVATION INSPIRED BY YOU." Plasterboard demand per capita¹ m² p.a. per person India² 0.1 Philippines 0.2 Malaysia 0.6 -290 Vietnam 0.6 Indonesia 0.4 Thailand 1.3 Plasterboard Cement render South Korea² 5.8 Thailand Indonesia Vietnam Malaysia ● Philippines Australia² 7.4 0 5 10 1. USG Boral management estimates 2. Included for comparative purposes RESPONDING TO OPPORTUNITIES AND CHALLENGES • • USG BORAL INNOVATION INSPIRED BY YOU." Australia Knauf Bundaberg started in Queensland Grow innovation and commercial segment Building a niche, high-end position in New Zealand with SheetrockⓇ from Pinkenba South Korea Competitor capacity expansion has started Optimised customer / product mix and margins following termination of long-term supply agreement with Byucksan Innovation and commercial segment China Significant paper and gypsum inflation and tight supply Successfully achieving strong price increases Strong business performance in high-end, growing SheetrockⓇ penetration and new product offerings, focus on home deco segment . • Thailand and Indonesia Protracted soft construction markets, cost inflation and new entrants/capacity Protect premium brand with development of a mid-tier brand Accelerate penetration of plasterboard in cement render segment with EasyFinish™ Grow exports from Thailand Other countries Vietnam: strong growth, benefits from SheetrockⓇ but competitive price pressures Philippines: strong growth with well recognised brand India: Strong growth with significant potential 75 76#39CAPACITY EXPANSIONS TO SUPPORT DEMAND GROWTH India - Chennai • • • . New 30m m² plant under construction expected to be completed FY20 Leverages our market presence including brand, customer relationships and know how established in Southern India Servicing high growth market with 1.3bn population, country GDP -7% p.a. and one of the lowest plasterboard penetration rates among developing countries Vietnam – Ho Chi Minh Capacity expansion of 17m m² expected to be completed FY20 Upgrading and restarting Ho Chi Minh line 1, currently mothballed Addresses existing supply constraints Supports strong growth, with country GDP -6% p.a. and further penetration and adoption of plasterboard and related products OPERATIONAL COST IMPROVEMENTS INITIATIVES Chennai, India Ho Chi Minh line 1, Vietnam USG BORAL INNOVATION INSPIRED BY YOU." USG BORAL INNOVATION INSPIRED BY YOU." Disciplined project management focus Additional LEAN and 6 Sigma resources Focused plant reliability excellence program Targeted cost reduction capital improvements Continued supply chain excellence focus New focus on SE Asia logistics 77 78#40PART 2: AUSTRALIA / NEW ZEALAND AND INDONESIA Tony Charnock Senior Vice President, Asia Pacific AUSTRALIA COUNTRY DYNAMICS Plasterboard share¹ 35-40% WA Total 190m m² NT QLD 40m m² SA NSW/ ACT 18m m² USG Boral CSR Knauf BGC A VIC/TAS USG Boral/CSR-GRA gypsum mine JV USG Boral/CSR - Rondo metal JV Total plasterboard manufacturing capacity¹ = 233m m² 1. USG Boral management estimates 28m m² USG BORAL INNOVATION INSPIRED BY YOU." Demand remains robust despite multi-residential activity moderating YTD FY18 Expect moderate softening in activity in FY19 but remain well above historical averages underpinned by east coast detached housing and commercial projects Industry utilisation to fall following new entrant in Queensland but remain >80% at current demand USG Boral has a leading plasterboard position 79 80#41USG BORAL AUSTRALIAN FOOTPRINT NT QLD 14 USG BORAL INNOVATION INSPIRED BY YOU." • • SheetrockⓇ produced at Camellia (NSW), Pinkenba (Qld) and Port Melbourne (Vic) SheetrockⓇ adoption rates > 90% Strong distribution network comprising USG Boral owned and independent distributors plus retail distributors Significant revenue growth since JV formation driven by strong volume growth and solid price growth; prices moderated in 1H FY18 Australia/NZ - revenue WA 7 SA 4 NSW/ ACT 14 A$m CAGR¹ p.a. 13% 504 529 432 13 371 Board plant Joint compound plant GRA gypsum mine Rondo metal JV VIC/TAS USG Boral owned distribution sites² 1. Compound annual growth rate from FY14 to FY17 2. Includes Rondo distribution sites owned in JV with CSR OPPORTUNITIES ✓ Grow commercial segment exposure NextGen 2.0 297 266 FY14 FY15 FY16 FY17 1H FY17 1H FY18 New products ✓ Leverage Pinkenba capacity to grow New Zealand niche market ✓ Operational cost improvements USG BORAL INNOVATION INSPIRED BY YOU." Twin towers comprising Ritz Carlton (204 rooms) and apartments, WA 81 82#42BUILDING COMMERCIAL SECTOR GROWTH • • Commercial sector including multi-residential high rise, education, health care, hotels, retail projects Best in class architectural specification and engineering teams Value engineering support highly valued by commercial developers and contractors Invested in best in class Building Information Modelling (BIM) technology for architects, designers and contractors with 100k models (data rich) covering full catalogue Plasterboard segments¹ USG BORAL INNOVATION INSPIRED BY YOU.™ Project: Sky Tower, Brisbane - 1119 apartments/90 storeys Project: Capital Grand, Victoria % 1. 20 20 40 23 17 Detached dwelling Multi-dwelling Alternations & additions Non-residential USG Boral management estimates based on 1H FY18 revenue INNOVATION NEXTGEN 2.0 AND NEW PRODUCTS High adoption of SheetrockⓇ achieved Customers recognised superior product attributes and benefits: lighter weight, sag-resistant, stronger - Price premium achieved • NextGen 2.0 USG BORAL INNOVATION INSPIRED BY YOU." Optimising technology to achieve preferred product differentiation Developing value proposition Grow new products Ensemble TM Acoustical Drywall Ceiling Sheetrock® Ultralightweight Joint Compound USG Securock® Glass-Mat Roof Board and Gypsum-Fibre Roof Board USG Ensemble Acoustical Drywall Ceiling USG Securock® Gypsum- Fibre Roof Board system 83 84#43BUILDING A NICHE POSITION NEW ZEALAND USG BORAL INNOVATION INSPIRED BY YOU." • Build niche high-end position in plasterboard and related products ~27m m² plasterboard demand¹ Existing strong positions in joint compound and mineral fibre ceiling grid Footprint established Leveraging SheetrockⓇ capacity at Pinkenba Distribution warehouses in Auckland and Wellington Metal roll forming business sold to Rondo in Feb-2018 Rondo will continue to supply USG Boral NZ . Winning work and establishing relationships Securock gypsum fibre roof board (under bitumen sealer) Plasterboard competitor Fletcher Winstone Wall Boards Only local manufacturer of plasterboard 1. USG Boral management estimate INDONESIA 85 86#44INDONESIA COUNTRY DYNAMICS . USG BORAL INNOVATION INSPIRED BY YOU." Demand continues to be subdued Competitive price pressures driven by excess industry capacity Competitors building new capacity recognising strong growth potential from increased product penetration Expect economic recovery with increased political stability in 2019 Plasterboard: Industry capacity vs demand¹ m m² Industry capacity --Plasterboard demand -100 • USG Boral: Player in high-end retail and project segments and growing presence in mid-tier segment Knauf, St Gobain and Yoshino are key competitors in mid-tier segment Aplus and other brands compete in low-end retail segment Plasterboard share¹ USG Boral Knauf 40-45% Siam Indo (Elephant) Saint Gobain ■Yoshino ■Aplus Total 100m m² FY09 FY13 FY14 FY15 FY16 FY17 FY18F 1. USG Boral management estimates OUR BRAND OFFERING MULTI-SEGMENT APPROACH Price index Base price 85-90 High-end Brand positioning Support jayaboard® SHEETROCK® • Premium brand . System offering INDO BOARD USGBORAL 75-85 Mid-tier 65-75 Low-end Key competitor • • Technical assistance Guarantee offering Customer service • Quality assurance Price • Promotion Customer service Price Promotion • Store branding Minimising logistics costs USG BORAL INNOVATION INSPIRED BY YOU." Indo Board launched January 2016 Growing mid-tier segment Retailers channel 88 87#45INDONESIA FOOTPRINT Sumatra Plasterboard plant (total capacity 72 m m²) Plasterboard ceiling plant Metal products plant Joint compound plant Natural gypsum sourced from Thailand Cilegon Plant: 56m m² USG BORAL INNOVATION INSPIRED BY YOU." Plasterboard segments¹ 20 Kalimantan Sulawesi East Indonesia Surabaya Java Jakarta 1. USG Boral management estimates based on plasterboard sales volumes Gresik Plant: 16m m² Opportunistic exports to Australia from Cilegon EASYFINISH™M ACCELERATING PENETRATION IN WALL PARTITIONS Plasterboard vs cement render demand m m² • • ~105 -250 Retail Project 80 USG BORAL INNOVATION INSPIRED BY YOU." BRANZ GOLD COAST Plasterboard Cement render Accelerate plasterboard adoption in wall partitions as step towards cavity walls in emerging countries Leverage EasyFinish TM to convert cement render system to plasterboard lining system Very positive initial take-up in Indonesia but early days Initial focus on hotels and multi-residential projects 60GES BETWEEN TOWERS Branz, Gold Coast, West Vista Apartment Jakarta 89 90#46ADDITIONAL INFORMATION EXECUTIVE TEAM Frederic de Rougemont CEO USG BORAL INNOVATION INSPIRED BY YOU." Linda Wong SVP Chris Rosenthal SVP HR Dan Casey SVP Paul Monzella CFO Tony Charnock General Counsel Asia & Middle East SVP Asia Pacific Jeff Russart SVP CTO Susan Yeom Korea Gregory Lukasik China Chroong Kanjchanapoomi Thailand Sumit Bidani India Sang Tran Vietnam Fares Saghbini Middle East Tomoo Enomoto SVP Marketing and Sales Excellence Tony Charnock Australia Nicolas Youngman New Zealand Mark Sergio Philippines TBD Indonesia Daron Cheah Malaysia Peck Ling Tan Singapore 91 92#47MANUFACTURING CAPACITY BENEFITING FROM PRIOR INVESTMENT Plasterboard manufacturing capacity¹ USG BORAL INNOVATION INSPIRED BY YOU." mm² Chongqing 3 and Shandong Port Melbourne2 Luu Ho Chi Minh 2 Chongqing 4 Chengdu closed² Following capacity expansions Ho Chi Minh 1 Chennai Chengdu (West) Pinkenba² Cilegon 2 Oman Ho Chi Minh 1 closed Port Melbourne² Dangjin 2 Pinkenba² Khushkhera — Saraburi 2 664 625 637 629 Baoshan (East) 622 617 ■ Oman 580 545 492 492 416 396 348 India ■Malaysia ■Vietnam China Indonesia Thailand Korea Australia FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 1H FY18 FY20F 1. As at period end 2. Capacity expansion / closures recognised over two financial years EXTENSIVE INFRASTRUCTURE USG BORAL INNOVATION INSPIRED BY YOU." 33 93 Plasterboard Metal products Mineral fibre ceiling tile Joint compound Gypsum Other Capacity Plants m m² bsf³ Board lines Ceiling lines Plants Plants Plants Mine Plants Total 617 6.6 18 23 6 11 2 12 3 3 Australia 86 0.9 3 3 14 1 17 2 cornice Korea 153 1.6 3 4 1 2 China 143 1.5 4 6 1 Thailand 1051 1.11 2 31 11 Indonesia 72 0.8 2 3 1 Vietnam 30 0.3 1 1 1 India 9 0.1 1 1 Malay./Sing 11.1 0.1 1 1 1 Saudi Arab. Oman 3111215 16 3 Mineral wool6 1 1 1 24 1 14 2 15 15 82 0.12 1 12 12 71% ownership interest in SGI. Boonya gypsum mine and PLT are 100% owned Owned in JV with Zawawi Minerals; own 55% of mine. 100% owned plasterboard plant 1. 2. 3. Billion square feet 4. 50/50 JV with CSR (Rondo) 5. 45/55 JV with local partner Saudi Structured Contracting Company 6. 50/50 Star-USG JV with BBMG Group 7. 50/50 JV with CSR (GRA) 94#48PRODUCTION CAPACITY BY PLANT Overall production capacity: 617m m² USG BORAL INNOVATION INSPIRED BY YOU.™ Country Plant Capacity, mm² Sheetrock¹ Country Plant Capacity, Sheetrock¹ mm² Australia Pinkenba 40 Thailand Saraburi 1 50 3 plants, 3 lines 2 plants, 3 lines Port Melbourne 28 Saraburi 2 35 Total: 86m m² Camellia 18 ✓ Total: 105mm² Songkhla 20 Korea Ulsan 46 ✓ Indonesia Cilegon 1 26 3 plants, 2 plants, 3 lines 4 lines Dangjin 1 37 ✓ Cilegon 2 30 Dangjin 2 35 Total: 72m m² Gresik 17 ✓ Total: 153m m² Yosu 35 Vietnam Ho Chi Minh 2 30 China Baoshan 35 Malaysia Parit Buntar 11 4 plants, 6 lines Shandong 35 Chongqing 2 13 India Khushkhera 9 Chongqing 3 & 4 30 Oman Oman 8 Total: 143m m² Pudong 30 1. Plants with Sheetrock technology 95