Boral Strategic Update and Developments
End use case study 1:
GREYSTANES ESTATE DEVELOPMENT delivered significant end use value
with ~$260m of EBIT over 15+ years: completed in 2018
• 1998 - end use development potential identified
Land
Disposal
•
1999/2000 - rezoning and planning approvals secured
BORAL
• 2001 - End of quarry life, with sale of Northern Employment Lands (NEL)
⚫ 2002 - Delfin Lend Lease commences Nelsons Ridge residential development under a property development agreement
2007 - All operations of 100+ year Prospect Quarry cease
⚫ 2007 - SEL Eastern rehabilitated quarry floor sold to Dexus
2014-SEL Western rehabilitated quarry floor sold to Dexus
.
2016 Nelsons Ridge project completed
2018 - Sale of Boral's former Masonry plant adjacent to SEL
Precinct (A$) million 2002-2018
Revenue
EBIT
Northern Employment Land (NEL)
115
66
Southern Employment lands (SEL) (Phase 1)
160
32
SEL (Phase 2)
66
6
Nelsons Ridge
269
100
Prospect Masonry
Total
60
56
670
260
39
End use case study 2:
DEER PARK QUARRY TO LANDFILL STRATEGY is extracting significant
value through sale of past and future quarry voids, with a projected earnings
contribution of >$500m¹
Ongoing quarry and landfill operation located ~25km west of Melbourne's CBD
⚫ 1965 - Deer Park Quarry commenced operations
•
1993 - Deer Park Asphalt established
1999 Landfill operations commenced concurrently with quarry
•
2001 Deer Park Concrete established
2014 - Landfill business divested to Cleanaway Waste
Management (formerly Transpacific Industries) for $150m²
2015 Royalties commenced at -~$15m pa, growing over time
for the life of the landfill
• 2019 - zero cost Earth Exchange program underway -
accepting clean fill from major infrastructure project for future
Land
Disposal
BORAL
quarry development and permanent rehabilitation of same areas
⚫ Landfill earnings reported in underlying business (not shown in Property earnings)
1. Based on gain on disposal of Western Landfill business (which was reported as a significant item in FY2015) and assuming current landfill royalties (reported as earnings in operating business
rather than Property earnings) to continue at a similar level for the life of the current consented landfill, subject to required approvals
2. Under the agreement Boral received $150m as an upfront payment and $15m for site preparation works
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