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-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

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