Investor Presentaiton
Customer 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
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