Investor Presentaiton
Strengthening BORAL's Balance Sheet
As at 30 June 2013 - Proforma Gearing
30 June
Proforma¹
2013
Gearing
30%
22%
(Net debt / net debt + equity)
Gearing
40%
29%
(covenant calculation)
BORAL®
USG
US$500m upfront cash:
Majority of proceeds to be applied to
reducing Boral's debt
May also consider capital management
initiatives, subject to market conditions
Reduction in proforma gearing reflects
group net debt reducing to - A$0.9bn
JV self funding
~
Impact to financial statements
Transaction will be reflected in Boral's accounts as an equity accounted interest (50%) in joint
ventures following
De-consolidation of existing Australian and Asian subsidiaries
Recognition of single balance sheet asset, equity accounted investment in joint ventures, at fair value
Final accounting impact will be finalised following transaction completion
Value accretive for Boral shareholders
1. Illustrative impact on balance sheet ratios if the transaction had occurred on 30 June 2013. Unaudited figures for illustrative purposes only, assumes FX AUD/USD of 0.9257.
BORAL - impact on Income Statement
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BORAL®
USG
Year ended 30 June 2013 - Proforma Income Statement
Illustrative FY2013 Income Statement as if transaction had occurred
on 1 July 2012
Group Proforma Proforma Proforma
adj²
adj³
Group
Revenue
5,286
(919)
4,367
EBIT¹
228
(83)
27
172
Net interest
(97)
4
20
(73)
Income tax
(20)
16
(6)
(10)
expense¹
Non-controlling
(6)
8
interest
Profit after tax¹
104
(55)
41
91
2
FY2013 proforma assumptions:
Interest savings based on initial debt
repayment of A$250m4 and A$250m4
cash on deposit
Excludes: impact from USG
contributed operations5, benefits from
synergies, integration costs and any
gain/loss on disposal at date of
transaction (after fair value
adjustments)- will be treated as a
significant item
In FY2014, expect Boral's NPAT
to reduce by around A$15m
Expect US$35-$45m6 as 50%
share of JV post-tax earnings in
first full year
1. Excluding significant items
2. Illustrative deconsolidation of Gypsum Australian and Asian entities
3. Illustrative impact of equity accounted post-tax earnings and interest savings (excludes earnings from USG entities and synergies)
4. Initial proceeds of US$500m at July 2012 FX rate 1:1
5. Net contribution from USG in FY2013 is negligible
6. Assumes a negligible level of net debt within the JV
Figures may not add due to rounding.
30View entire presentation