Boral Strategic Update and Developments
BORAL
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
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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%
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