Boral Strategic Update and Developments
USG 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.
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