BORAL

NEWS DEC 2015

MANAGING PROPERTY TO MAXIMISE VALUE TRANSFORMING THROUGH INNOVATION Interview with Brian Below, President, Light Building Products, USA

HOW WE’RE BUILDING A DIVERSE AND INCLUSIVE CULTURE

A DAY IN THE LIFE OF OUR NORTHERN TERRITORY QUARRIES

INTRODUCING ZERO HARM TODAY FROM THE CEO

Zero Harm Today During November, over 100 of Boral’s leaders from our global operations came together for two days to consider how we can deliver our goal of Zero Harm. Delivering Zero Harm is without doubt the biggest challenge of my career. We have comprehensive training programs, extensive safe working procedures, hazard reduction programs and committed people, yet people are still getting hurt. FRONT COVER IMAGE: Brian Below, President, Light Building While the overall frequency rate of medical treatment Products, Boral USA and lost time injuries in Boral has been reducing, lost Boral News is published by time injuries have plateaued at around 1.8 injuries per Boral Limited ABN 13 008 421 761. million hours worked by employees and contractors. If you have an item of news for future issues, please contact: We have been at that level for four years now and we Linda Assatoury need to do better. Group Communications & Investor Relations Manager I often hear people say that Boral’s safety performance Boral® is a registered trademark of is not bad – and it’s true that statistically we are Boral Limited or one of its subsidiaries. performing much better than average across our © 2015 Boral Ltd. All rights reserved. industries: manufacturing, materials extraction, © 2015 USG Boral. All rights reserved. transport and logistics. But that’s not good enough! We are still hurting people at work and no-one should settle for anything less than Zero Harm. Some of the serious incidences and near misses that our people are involved with are concerning. We need to all believe in Zero Harm so that no matter where we are – on a Boral site, at a customer’s site, or in transit; in , North America or in – we need to be committed to stand up and say: “No, that’s unsafe, I will not put myself or others in harm’s way for the sake of production – ever”. During the Leadership Summit, we agreed that if we can perform our work for one minute without harm, then we can work for an hour without harm, and then a day without harm. And if we can go a day without harm, we can go two days, a week, a month, a year. It is achievable. We need to be committed. We need to think about working safely – looking out for each other now, today and every day. If we start with Zero Harm today, we can achieve Zero Harm tomorrow too.

Mike Kane CEO & Managing Director Inside

16 10 Features 05 16 Boral TruExterior® A day in the life of our Trim gets thumbs-up Northern Territory quarries Why a US industry expert rates See how Boral staff spend a day Boral TruExterior® so highly at these facilities 08 18 Managing our properties Showing the way to to maximise value Zero Harm Today The company’s land portfolio adds Boral senior leaders, Board millions to the bottom line 05 members and managers discuss ‘Leadership for Zero Harm’ 10 Regulars Building a diverse and inclusive culture 02 NEWS Wayne Manners is championing 03 PRODUCTS change in our Australian operations 04 PEOPLE 06 PROFILE Brian Below, President, Light Building Products, Boral USA 20 IN THE COMMUNITY

BORAL NEWS | DEC 2015 | 1

NEWS

TAKE NOTE Five interesting projects across Boral

USG Boral China is Bricks and pavers from The Woodlands Convention Boral’s lower carbon Hunters Hill, NSW home supplying partitions, Midland Brick used for Center in Houston, Texas concrete ENVISIA® used re-roof used Boral shaft walls, lining walls Telethon charity home, used Cultured Stone® by in 333 George Street, Terracotta ShingleTM and ceilings to Shanghai Clarkson, WA Boral® Southern Sydney1, commercial in Eclipse Disney Resort Ledgestone in Rustic building

End of an era as Emu Plains East coast Brick JV Quarry closes branding comes together gravel needs of the Sydney industry. More than 160 million tonnes of sand and gravel have been extracted in Following the formation of Also in September, the its lifetime. the Boral CSR Bricks joint combined product offer For Boral, it has been venture in May 2015, the was launched on the PGH replaced by the Peppertree best of Boral’s and CSR’s Bricks & Pavers website Quarry at Marulan in the east coast bricks offerings for Queensland and NSW; Southern Tablelands of have been launched under Victoria’s range launch will NSW, which has in excess the PGH Bricks & Pavers follow in February 2016. of 100 years of resource. brand in a series of events. The united business The site is currently The branding is being under the PGH Bricks Last truck out of Emu Plains. Photo by Phil Rogers being rehabilitated before implemented progressively & Pavers brand is now being transformed into with PGH Bricks & Pavers focused on offering After almost 130 years, the Penrith Lakes Scheme, recreational lakes and branded displays featuring customers the most the Emu Plains Quarry of which Boral is a 40% parklands and future urban the combined product diverse range of quality delivered its last truckload shareholder. At its peak, development as part of the range being rolled out in clay bricks with the very of sand and gravel on the Penrith Lakes Scheme Penrith Lakes Parkland Queensland, NSW and best in service delivery. 21 September 2015. was the largest quarry in scheme. Victoria from September. Emu Plains Quarry the Sydney basin, supplying sourced its raw feed from up to 80% of the sand and

Boral Construction Materials & Cement Performance in the extractive industries Innovation and excellence businesses across Australia have category for its site safety initiatives and recognised at CCAA awards been recognised at the annual state- the Environmental Innovation Award for based Cement Concrete & Aggregates its foam dust suppression system. Australia (CCAA) Environment, Health In South Australia, Boral Resources & Safety Awards for improving were joint winners of the Health & Safety environmental performance and health Innovation Award for its tyre pressure and safety outcomes. checking device. In NSW, Boral Construction Materials In Queensland, Boral Construction won the Health & Safety Innovation Award Materials took out the Community for its autonomous inspection unit at the Leadership Award for its community Seaham Quarry. Boral Cement took out relationship initiatives around the Ormeau both the Environmental Innovation Award Quarry, while in Victoria Boral was for efficiency works on the Marulan kiln commended for both the Environmental bag filter and the Environmental Best Innovation Award for the Striped Legless Performance accolade for its Berrima Lizard salvage efforts and the Health & Cement Works site rehabilitation. Safety Innovation Award for its Dunnstown Boral’s Orange Grove Quarry in Quarry product bin load out laser guide. Western Australia also clocked up two Congratulations to all the winners! (From left) Hon Duncan Gay, Minister for Roads, Maritime & Freight presents an award to Ravi Mehrotra and Alex awards, with the Health & Safety Best Wnorowski of Boral Cement

2 | BORAL NEWS | DEC 2015 1Owned and managed by Charter Hall and being built by Watpac

PRODUCTS

Mobile product training DID YOU direct to the pros KNOW? Boral USA is bringing product education direct to customers with six mobile training units designed to teach and train building professionals, installers and dealers about Boral’s lightweight cladding products. The travelling exhibits showcase the benefits and installation techniques of Boral TruExterior® Siding 801 and Trim and Boral Versetta Stone®, with tools including installed wall sections in various profiles, colours and applications of Boral products and associated accessories. NUMBER OF Work stations set up outside the training units allow TRANSACTIONS visitors to cut, rout, drill and fasten the products. PROCESSED BY MIDLAND BRICK’S ONLINE STORE A Boral Technical Installation Manager is on hand to IN ITS FIRST YEAR answer questions and provide further information. Director of Strategy and Business Development for Boral USA’s Light Building Products business, David Odum, said, “Boral TruExterior® Siding and Trim and Boral Versetta Stone® are unique exterior products offering a superior set of performance benefits that often you have to see to believe. % “Our new training trailers allow building pros to see, 70 “Our new training trailers allow touch, feel and experience each of these products, to provide a deeper understanding of and appreciation building pros to see, touch, feel and for the product lines so they can more effectively sell experience each of these products... them, design with them and install them.” PERCENTAGE OF RECYCLED MATERIALS IN TRUEXTERIOR® SIDING, so they can more effectively sell them, TRIM AND BEADBOARD design with them and install them”

New Sheetrock® Brand Cove cornice USG Boral will launch its new The new product provides a super-strong, lightweight cove more rigid cornice which makes cornice in Australia and carrying, handling and installing it in January 2016. easier for residential and Sheetrock® Brand Cove is 5% commercial internal ceiling lighter than the previous USG Boral applications. cove products and is encased in a Sheetrock® Brand Cove is strong 100%-recycled paper liner. available in 55, 75 and 90 millimetre profile sizes and in lengths up to 5.4 metres.

Fresh designs for decorative New colours for Boral Versetta concrete Stone®

Boral Concrete has designed new There are new display areas In direct response to customer greys and blues for a softer Boralstone®, Expose® and Colori® featuring the refreshed decorative demand and shifting consumer approach, while the more dramatic offers for customers, with fresh concrete designs at Boral’s Cairns, trends in the USA, two new Graphite has a blend of near-black designs rolled out across Western Queensland, and Bunbury, WA, colours were launched in the Boral greys with whitewashed stones. Australia, South Australia and Far plants, as well as at Home Base Versetta Stone® mortarless stone Both colours are available in the North Queensland to date. building and renovation centre in veneer product line in October. Boral Versetta Stone® Ledgestone Subiaco, WA. Mission Point combines light and Tight Cut textures.

BORAL NEWS | DEC 2015 | 3

PEOPLE

Welcoming our new Chairman Dr Brian Clark Dr Brian Clark was welcomed as the new Also announced ahead of the AGM Chairman of Boral at the end of the 2015 was the appointment of Karen Moses as a Annual General Meeting (AGM) on Non-executive Director, effective 1 March 5 November, as Dr Bob Every stepped 2016. This will maintain the size of the down from the Board. Board with eight directors, including seven Brian joined Boral as a Non-executive Non-executive Directors – four of whom Director in May 2007, and has experience will be female. as an executive and director in Australasia, , China, Italy, the UK and “On behalf of the Board, South Africa. management, Boral’s “On behalf of the Board, management, Boral’s employees and shareholders, I employees and shareholders, thank Bob for the important role he has I thank Bob for the important played in steering the business in the right direction, for ensuring Boral has had the role he has played in right type of leadership and culture at the steering the business in right time and for maintaining the highest Previous Chairman Dr Bob Every and Boral’s new Chairman level of corporate governance standards,” the right direction” Dr Brian Clark said Brian at the AGM. Chairman, Brian Clark

Our inspirational NT young Developing tomorrow’s leaders achiever Andrea Hodgson, a Laboratory Technician at the Howard Following the success of last year’s Aimed at operational leaders, over six Springs quarry in the Northern Territory, was recognised inaugural program, 21 leaders from Boral’s months participants will focus on self- at a National Association of Women in Construction Construction Materials & Cement development and how to bring Boral’s (NAWIC) awards night in September. operations have been selected to strategies to life. The program is designed Andrea won the Laing O’Rourke Award to a Young participate in this year’s Future Leaders and delivered in partnership with the Achiever or New Starter for her achievements in her first Program. Australian Graduate School of post in the construction industry, having come from a Management (AGSM), and provides geology and mining background. NAWIC’s Crystal Vision “The program so far has credits towards an MBA. Awards recognise inspirational women who play a crucial Chris Barras, General Manager Sales role in the construction industry. been extremely insightful for Concrete in the Southern Region, said and has helped challenge the experience has been invaluable. “The program so far has been extremely me as to whether I am insightful and has helped challenge me as spending the right amount to whether I am spending the right amount of time on the right activity and how to be of time on the right activity a higher performing leader,” he said. and how to be a higher In addition, 22 leaders participated in the new Emerging Leaders program in performing leader” October. Aimed at supporting new managers in frontline roles, the program will see participants recovene in April after delivering Skilled 4 Action training modules.

Andrea Hodgson from Boral Quarries, Northern Territory

Learning@Boral congratulates graduates In 2015, the national learning and development hub for Boral’s Australian operations, Learning@Boral, has proudly supported employees to graduate with a range of nationally recognised qualifications and from accredited short courses. This has included a dual qualification of Certificate III and IV in Competitive Systems and Practices – a new program aligned to the Boral Production System – as well as Certificate II, III and IV, Diploma and Advanced Diploma qualifications in Surface Extraction, Certificate III in Civil Construction and Certificate IV in Laboratory Techniques. Congratulations to our graduates and course participants for their dedication and achievements.

Institute of Quarrrying NSW graduation night

4 | BORAL NEWS | DEC 2015

FEATURE

BORAL TRUEXTERIOR® TRIM GETS INDUSTRY THUMBS UP

In the USA, Boral TruExterior® Trim has been named among the best of the engineered exterior trim category recently by industry expert and veteran carpenter, Gary M. Katz. n assessing cost, installation requirements and splitting. They don’t need priming or and performance attributes of a range sealing and can be installed using of 10 of the latest modern exterior trim conventional woodworking tools Iproducts, Boral TruExterior® Trim was and methods. reviewed very favourably. Gary highlighted Gary has specialised in finish carpentry the product’s workability in cutting and for over 35 years. He is a contributing milling and its ease of installation, with editor to Fine Homebuilding magazine and less cumbersome fastening and finishing produces the Katz™ Roadshow, which requirements compared to competing provides contractor-taught construction products. training and hands-on education for the As Gary explains, “The most recent construction industry. engineered trim option is made from resin Boral became a Global Sponsor of and fly ash, a waste product of coal- the Katz™ Roadshow in 2015, after a generated electricity.” Boral is currently the successful year as a key sponsor in 2014. only manufacturer of fly ash trim. Industry Reaching nearly 2,000 contractors per year, experts like Gary are beginning to recognise the roadshow has proven to be effective in the poly-ash technology as a new material helping Boral to increase awareness of Boral type, unlike any other man-made material on TruExterior® Siding and Trim products. the market today. Of the 10 trim products reviewed, Today’s Best Boral TruExterior® Trim is the only product Exterior “Today’s Best Exterior approved for ground contact. This is Trim Trim” by Gary M. Katz because, unlike other products, fly ash trim is A veteran carpenter sorts through was published in the 10 of the latest engineered options both moisture resistant and thermally stable. By Gary M. Katz August/September ot too long ago, the only material used for exterior trim was old-growth lumber—Douglas fir and red- 2015 issue of Fine wood on the West Coast; yellow pine, white pine, and cedar on the East Coast; southern yellow pine Nand cypress in the South. Because of changes in forestry and Made of 70% pre-consumer recycled the introduction of innovative materials, home builders and Homebuilding homeowners today have a host of trim products to choose from. All of these engineered-trim options promise to be decay resistant and easy to work with and to perform bet- ® ter than the new-growth lumber stocked at the lumber- yard. However, each has its own unique properties that magazine in the materials, the TruExterior suite of trim and you need to understand before using it in the field. I first wrote about engineered trim 10 years ago for Fine Homebuilding, and a lot has changed since then. Many of the products I reviewed in that story are no longer available, while many others have changed USA. Reprinted with so much that they no longer resemble the origi- siding products has been developed at nals. It’s time to take a fresh look at modern exterior trim in order to help you choose the right product for your next project. permission courtesy Gary M. Katz is a contributing editor. Photos by Rodney Diaz, except Boral’s Innovation Factory. Unlike traditional where noted. of Fine Homebuilding wood products, they are low-maintenance magazine ©The Photo: Charles Bickford AuguSt/SEPtEMBEr 2015 61 Taunton Press, 2015. and resistant to moisture, rotting, cracking

BORAL NEWS | DEC 2015 | 5 PROFILE 6 |BORALNEWS |DEC2015 in Sydney. in was recently he when Brian News Boral Transform Fix, Execute, our of phase Transform the for required and exemplifying what’s way for innovations future done. He’s leading the Products business, has USA’s Boral Building Light Brian Below, President of what exactly that’s But task. easy no is scratch from a new business into it turning then and to commercialisation through laboratory the Taking from anew concept program. program. caught up with caught with up

– and Boral provided that opportunity. I also Ialso opportunity. that provided Boral – and schoolmanufacturing training and business my use Icould where opportunity an wanted I MBA, my After things. manufacture that you?attracted of Management. School UCLA’s at MBA an Anderson to pursue Idecided 2003 in Then companies. multi-national to large, exposure as well as scope and scale industrial on perspective by BP. different bought awhole me gave It a large production facility that was later at Polymers Texas in Solvay for years several for Iworked graduation, After experience. which gave me valuable hands-on what’s now Splenda Johnson & Johnson on the development of had the to opportunity work for a division of I there Tech. While Georgia from engineering undergraduate degree in chemical Boral. joining before career your BRIAN BB: BN: I earned my my Iearned BELOW: BRIAN BORAL NEWS: I’ve always worked for companies companies for worked I’ve always Why did you join Boral? What What Boral? join you did Why ® , the artificial sweetener, Tell us a bit about Tell about abit us BELOW

and Boral TruExterior Boral and commercial launch of Boral TruExterior the and business astart-up as Inc. R&D led to the formation of Boral Composites in work Our Factory. Innovation Boral the now what’s group, (R&D) &Development Research the in role development aproduct into moved then and (Atlanta) Roswell in headquarters US corporate strategy and planning role at Boral’s a in I started market. housing US the for years boom the –during GFC the –before 2005 in back was grow. and This to invest planning was that of acompany part to be wanted established, traditional products in the US of segments. and across different geographies, channels successfully commercialise these products to is aim Our Boral. for platforms market products, all of which represent new-to- in the Light Building business. Products September. in company the with 10 years Icelebrated journey! exciting an It’s been They’re quite different to our long- to our different quite They’re BB: BN: It includes the Boral Versetta Stone Tell us more about what you do do you what about Tell more us ® Siding and Trim ®

Trim.

®

and then to commercial manufacturing. A scale-up like that is challenging and in this BN: What are some of the challenges case we were working with a new technology for the Light Building Products business and unique manufacturing process. It’s a over the next five years or so? credit to our strong operations and R&D BB: One of the challenges is continuing teams that we’ve overcome the challenges. to scale the business to match growth. From We’ve been working with this technology a resourcing and organisational design for less than nine years, and have been perspective, as well as the systems and commercial about four years, so there’s processes we use, everything needs to be tremendous opportunity as we continue sufficiently scalable. Maintaining the culture, to grow. particularly the focus on Zero Harm, is also critical. BN: What excites you about the future of the Boral USA business? “We wouldn’t exist BB: After coming through the GFC and breaking through to profitability in FY2015, without innovation; there’s a lot of optimism about our business. it’s a must-have for us The US businesses are launching new products, improving our service platforms and to maintain our rapid expanding our manufacturing capabilities. I’m excited about how our businesses are growth” positioned for the market recovery and what’s being done to further diversify the US portfolio and improve performance. Also, our focus on safety over the last several years is exciting. BN: What’s been the key to the BN: Best advice you ever received? success of the business to date? Any BB: Before starting my first role, my Dad lessons? told me that if I wanted to do well I should BB: A clear vision for where we want to spend as much time as possible with the go, a solid strategy on how to get there, and experienced operators, supervisors and support from management in providing the managers and try to absorb everything they resources to make it happen. In addition, knew about the business. In essence, he we’ve been fortunate to have great was telling me to be humble and never stop collaboration, not only from the Boral learning. It was advice that served me well bricks, roof tile and veneer stone. In addition Innovation Factory but with all the teams. and I’ve tried to keep that mindset ever since. to diversifying our business, these products We’ve learned a tremendous amount. BN: What do you do in your spare are more variable cost driven with lower As a start-up having the right people, with the time? capital intensity and higher return right skills and culture in the right roles is vital. BB: I have a lot of different interests and characteristics. Everyone has to be committed to the vision hobbies but most of my spare time these BN: What’s been the hardest and to be part of growing something from days is spent with my wife and two children. challenge in commercialising a concept nothing. We’ve been able to overcome a lot of Our latest trip is to Peru to visit Machu Picchu and bringing a totally new product challenges because of the talent, passion and and the Amazon. to market? perseverance from the folks on our team. BB: The biggest challenge has been in BN: How important is product launching unknown materials and products to innovation for a sustainable Boral? distribution channels and geographies BB: Mission critical! Traditionally the outside of our traditional businesses. The building materials industry has been slow to “I’m excited about market already has a choice of incumbent change. Many products have been around, how our businesses products from well-known brands so we have essentially unchanged, for decades if not to make our customers aware of our new centuries. Unlike, say the semiconductor are postioned for the products and why they’re better. Like with industry, the importance placed on product most things people can be afraid of taking innovation has not been as high as in other market recovery” chances, there’s a natural reluctance to try industries. However, I believe that the rate of something new. In developing our marketing change in our industry is accelerating and as plans we focus a lot of our initiatives around this plays out, companies that adapt and driving awareness and inducing trial. respond will succeed and grow and those Internally the challenges have been that don’t will suffer. As part of our Fix, around launching a start-up business. Execute, Transform program, innovation is Historically in the USA, Boral has grown critical to our growth. For Light Building through M&A or expanding capacity in Products for instance we wouldn’t exist existing businesses. There really was no without innovation; it’s a must-have for us to playbook for creating a new business from maintain our rapid growth. In fact, our scratch so we had to work our way through medium-term aim is to have half our future the process. revenue come from new products. Another key challenge was taking the technology from the lab scale to pilot scale

BORAL NEWS | DEC 2015 | 7

FEATURE “We work in partnership with our operational management teams as early as possible to liberate value, reduce our costs and create market- based opportunities. Good, early planning that considers the potential end use of a property MANAGING OUR cannot only make us a considerable profit, it can save us money in future PROPERTIES TO as well.” Brian Tasker

National General Manager of MAXIMISE VALUE Boral Property Group

When you think of Boral, property may not be the first thing that comes to mind but in fact property sales are a normal part of our operations. When our quarries, concrete and asphalt plants and other operations come to the end of their economic lives, they are replaced with alternate operations at other sites. The land, which can become more valuable as a result of urban growth, is then sold. Because of this, we manage a network that is continually adjusting and changing. In Australia, Boral has more than 400 operating and 120 distribution sites, most of which are owned, not leased. The 400+ management of our Property portfolio is the responsibility of our operating sites Construction Materials & Cement division which has the largest across Australia share of Boral’s land holdings. Brian Tasker, National General Manager of Boral Property Group, says his team must work closely with Boral’s businesses as early as possible to maximise returns and ensure the portfolio is managed efficiently. PROPERTY PIPELINE Indeed, Boral Property has contributed an annual average of At any one time, we have 20 or more $36 million to earnings over the past 10 years, and $24 million per properties in the pipeline, with earnings potential and timing of sales dependent year over the past five years following the completion of major, on a range of factors. multi-year re-developments of an old Boral brick site at Moorebank and our old Prospect Quarry, both in Sydney. There are currently 20+ discrete, lower value sites in the pipeline, including: A prime focus in the past five years has been streamlining the • Properties in WA, including surplus portfolio and our balance sheet. But significant development buffer lands and former clay pits, to opportunities and exciting new projects will see the company contribute to earnings from FY2016 placing even greater reliance on the skills of our Property Group • Ex-concrete sites in NSW, subject to in the years ahead. rehabilitation/rezoning, could contribute to earnings from FY2017/18 • Surplus land around the Stonyfell Quarry, SA, could deliver potential benefit in EBIT1, A$ million FY2016/17 • Bridgewater Quarry, Tas, subject to 10-year average rezoning, has potential benefit from Property/QEU earnings FY2017/18 $36m Development opportunities in the pipeline: 5-year average 56 • 40% stake in Penrith Lakes Development 54 Property/QEU earnings $24m (former quarry), NSW 47 47 46 • Stapylton Quarry, Qld • Donnybrook Quarry, Vic 32 28 28 • Jandakot Masonry site, WA • Scoresby brick site, Vic • Nelsons Ridge, NSW – final two 12 8 contracts could deliver ~$10 – $15m of earnings over two years from FY2016 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

1 Excludes significant items

8 | BORAL NEWS | DEC 2015 FUTURE LAND DEVELOPMENT OPPORTUNITY

2

PAST EXAMPLE

Stapylton Quarry in Queensland is a 92-hectare site which may be worth $15m to $30m in future

PAST EXAMPLE

Former Prospect Quarry in Greystanes, NSW, was a 330-hectare site developed as Nelsons Ridge residential development and Quarry West industrial precinct, generating in excess of $190m in EBIT from 2000 to 2015

Former Moorebank brickworks in NSW was a 109-hectare site developed as Georges Fair residential park, generating $150m in EBIT from 2003 to 2015 120 FUTURE LAND DEVELOPMENT OPPORTUNITY distribution sites across Australia 2

The former quarry servicing all of Sydney, the Penrith Lakes Development in NSW in which Boral has a 40% share, is being rehabilitated and rezoned with potential for it to become home to 5,000+ families 2

FUTURE LAND DEVELOPMENT OPPORTUNITY Scoresby, Melbourne, Victoria The 171-hectare brick site in Scoresby, Melbourne, is currently leased to the Boral CSR Bricks joint venture. However, after 2025 we could have an option to sell the land, which is currently estimated to be worth in excess of $100 million if potential rezoning and redevelopment is realised 2 Potential sale proceeds / value assumes future land value if rezoned and rehabilitated as planned

BORAL NEWS | DEC 2015 | 9 MAIN STORY Building a diverse and inclusive culture

Pictured: Experienced concreter, Tony Ianni, and young leading hand, Natale Mascera on site at a Boral De Martin & Gasparini operation

10 | BORAL NEWS | DEC 2015 With the help of Boral’s Diversity Council, there is a renewed focus on diversity and inclusion in the workplace. Boral News talks to Wayne Manners, Chair of Boral’s Diversity Council, about the benefits that diversity and inclusion bring and we share stories from across our businesses.

Buddying brings together the generations Dealing with the challenge of an ageing workforce is nothing new for Boral’s De Martin & Gasparini operations in Sydney, Australia. The concrete placing specialists have traditionally had a mix of older and younger team members in their crews. “It brings a unique set of challenges,” says General Manager Louie Mazzarolo. “Going back in time, our workforce comprised mostly first-generation Australians and post-World War II European immigrants. As they retired, younger employees were hired to take their place. The older, more experienced team members now account for around a quarter of our workforce.” A few years ago, an informal buddying system was trialled to help build an inclusive team culture. New starters were buddied with an older crew member who helped them learn the ropes. It’s now become common practice for many crews. Young crew member Natale Mascera says there are many benefits to buddying. “I’ve learned ideas on how to approach my work and about the older generation’s work ethic, as well as a variety of skills by having a more experienced worker to engage with. It helps build a pool of knowledge all crew members can learn from.” Buddying can also help build care and empathy in the team. “Concreting is a physically demanding job and the younger team members make an important contribution which everyone appreciates,” says Louie. “We haven’t resolved all the issues related to an older workforce but we’re doing our best to ensure a safe and productive workplace for all our crews, at all times.”

BORAL NEWS | DEC 2015 | 11 MAIN STORY

Making the case for change

Wayne Manners steps out from behind the bright lights and camera, adjusting his jacket. The head of Boral’s Construction Materials business across Western Australia and the Northern Territory has just completed filming a video to raise awareness for Boral’s Diversity Council, an internal taskforce which he chairs. “Was that okay?” he asks. At first glance, Wayne fits the profile of an average employee. Eighty-six per cent of Boral’s 8,356 full-time equivalent employees globally are male and on average aged in their 40s or 50s. But the seasoned executive who has spent most of his career in traditionally male-dominated industries such as construction and manufacturing is championing a change across the Australian operations. He believes diversity and inclusion are needed to keep the organisation growing and at the top of its league. “To be number one for our employees, we need to attract and retain the best people regardless of their culture, gender or background,” explains Wayne. “And to be number one for our customers, our workforce needs to reflect them. So diversity and inclusion is central to Boral.” It’s also a critical part of Boral’s safety culture. “There’s more to lost time injuries than physical ones. What about the lost time we incur when someone is made to feel less than what they are, not included or not valued? Diversity and inclusion is central to our aim for Zero Harm.” Clearly, it’s a topic close to Wayne’s heart. “I’ve seen too much of bullying and harassment in workplaces I’ve been at in the past and there’s no place for it. I think to myself, how would I feel if it was my wife, or my daughter, or my son, or one of my friends who was mistreated or wasn’t respected in the workplace?” Why is diversity and inclusion so important? “Because it leads to Wayne Manners, Executive General Manager, Construction Materials WA/NT a diversity of thinking,” says Wayne. and Chair of Boral’s Diversity Council “We know that companies that adopt a culture of diversity and inclusion outperform others by up to 35%. It generates more “Our leaders innovation, supports higher productivity and makes for a more need to enjoyable workplace. People feel valued, are engaged and motivated and that means that they can always be their best at work.” understand and embrace diversity and inclusion and be visible around that, like they are with safety”

12 | BORAL NEWS | DEC 2015 Leading the way “Since 2010 our in Indigenous Indigenous relations employment plans There’s a lot of activity keeping have employed over Boral’s Indigenous relations 150 Indigenous team busy over the coming months. National Indigenous people with a Affairs Manager Vince Scarcella 94% retention rate is leading efforts to develop the first ever company-wide after 12 months” Reconciliation Action Plan, Boral’s Diversity refreshing our Aboriginal Council employment and training plans, and entering into a partnership In addition to his day job, Wayne with Supply Nation, a chairs Boral’s Diversity Council, procurement group that a cross-functional team of nine specialises in Indigenous-owned people from across the businesses. organisation tasked with Boral in Australia has educating and communicating a proud history of building with employees about diversity. Indigenous relations, and much They are putting in place a series credit goes to Vince, who has of leadership development been developing employment programs to be rolled out across and training plans to support 2016 and 2017. the recruitment of Aboriginal Wayne says that managers women, trainees, graduates and will be the first to feel the apprentices over the past 10 changes. “Our leaders need years. Today, about 3% of Boral’s to understand and embrace Australian-based workforce is of diversity and inclusion and be Aboriginal descent. The company visible around that, like they are also invests in mentoring to help with safety. They need to lead by retain Indigenous employees. example. “Our programs complement “We also need to have the the mainstream recruitment of systems and tools to support Aboriginal people, targeting areas diversity and inclusion and ensure with high Aboriginal populations it’s embedded in our processes and in areas where we work – like recruitment, succession with Indigenous land owners,” planning, personal development explains Vince. “Since 2010 and talent management.” our Indigenous employment So how will we know if plans have employed over we’ve succeeded? “When all 150 Indigenous people with Top: Linda Barlow, one of Boral’s six Indigenous female employees, is Team our people truly respect each Leader for Quarries & Recycling in NSW a 94% retention rate after Bottom: Vince Scarcella, National Indigenous Affairs Manager other and embrace each other’s 12 months.” differences. When diversity is not Vince and his colleagues just tolerated, it’s celebrated. work with many Aboriginal leaders program. And through represents the company’s “We’re not necessarily communities to establish better the community partnership commitment to improve the going to do it well, everywhere, links and outcomes for all with Bangarra Dance Theatre, employment prospects of overnight. But in time we want Australians. For example, Boral the company supports the Aboriginal and Torres Strait to be an organisation that talks sponsored the Unmarked Graves employment of four trainee Islander people, since its proudly about our achievements for East Kempsey Cemetery dancers. inception in 1999. and celebrates our diversity by project in NSW and sponsors Boral has been a member sharing stories. So, let’s start the 36 Aboriginal school students of the Australian Government’s conversation!” he says. every year through a future Corporate Leaders for Indigenous Employment Program, which

BORAL NEWS | DEC 2015 | 13 MAIN STORY

A bright future for female leaders Women make up half the Board and comprise 23% of Boral’s “You need to be flexible to get senior executive team, but only flexibility. In the end, however, represent approximately 13% of management positions. I believe things work out the Yet they comprise 46% of right way and everyone gains” Australia’s labour force and 56% of all tertiary enrolments. That indicates there is a large pool managers have respected his of resources that the company family commitments, and is not taking advantage of, believes that in turn, it has says Linda Coates, Boral’s strengthened his dedication and Human Resources Director. loyalty. Moreover research shows that According to the Diversity a greater number of women in Council of Australia, workplace management is linked with flexibility is a key driver of better performing companies, employment for men as well as Linda says. women. Having the flexibility to Amy Wells and Kate Haines manage family and personal life are leading by example. Both is in the top five most valued are participants in Boral’s Future job characteristics for men. And Leaders Program delivered in people who enjoy such flexibility partnership with the Australian are more likely to be engaged Graduate School of Management and make extra efforts at work. which aims to help talented However it’s not without managers become executives. challenges, and not always Amy joined Boral as a appropriate. “We try to facilitate graduate in 1995 in Sydney’s it wherever we can if it’s mutually concrete operations before beneficial for the organisation Paul Jackson, Stakeholder Relations Manager NSW & Southern Region moving into the asphalt team, and our people,” says Bill Fisher, and later moved to Victoria where Executive General Manager HR she now heads up the Asphalt for Construction Materials in Manufacturing Operations team “In the five years I’ve been at Australia. “But there are some Flexibility across the Southern Region. Boral, the company has shown roles that don’t lend themselves Being the last remaining member improves loyalty its support for me as a valued to a flexible arrangement, of her graduate intake year employee by being flexible about especially in our frontline and retention 19 years on, she says that my personal situation and family operations.” Paul Jackson is a busy man. At an attitude of “rolling with the responsibilities,” says Paul. Paul agrees. It involves work he is responsible for the punches” – and supportive “It would have been difficult to common sense and give-and- stakeholder relations portfolio for managers early in her career – have made any contribution to take, he says. “You need to be Boral across NSW and the have been critical for the business otherwise.” flexible to get flexibility. In the Southern Region, and often her success. Paul manages his week end, however, I believe things visits the company’s operations around when he has care of work out the right way and and engages with surrounding his daughter, adapting his work everyone gains.” communities. He is also a busy patterns and location to meet father, with sole parenting his obligations to both the responsibilities for his daughter organisation and his personal half the week. life. He is grateful that his

14 | BORAL NEWS | DEC 2015 “I’ve had one or two for her current role. “I worked managers who’ve really with the tendering team on this understood the impact they’ve project for the better part of 12 been able to have on my months as a project estimator,” career,” says Amy. “It was their she says. “It gave me an attitude that made a difference understanding of potential risks and was instrumental in my and opportunities.” development. Perhaps they had More than that, Kate and a wife with a professional career Amy believe that diversity and or a daughter of a similar age inclusion have commercial entering the workforce.” implications. “There’s real

“We all have knowledge, skills, and experiences that are valuable, and when passed on, can transform an individual or a team”

Diversity in Boral USA With a culturally diverse and ageing workforce, diversity and inclusion are key priorities for Boral’s US operations. Boral USA President Al Borm says current efforts are focused on increasing gender diversity when recruiting and in building professional development plans for junior managers. Left: Kate Haines, Project Supervisor, Construction Materials, WA; and right: Amy Wells, “It is important for the future leaders to be exposed to a diverse Manufacturing Operations Manager – Asphalt, Construction Materials – Southern Region group of their peers. This allows for sharing of diverse ideas and helps these leaders make better, more informed decisions in the future. Other priorities include safety-related matters, especially for Research shows that opportunity for Boral to be well our ageing frontline people,” says Al. the junior and middle career aligned with our customers,” Plant manager Rachael Elliott knows too well the challenges stages are the most critical for says Kate. “It’s not just an of being one of the only female leaders in a traditionally male- determining if managers like Amy intangible thing. For example, dominated industry. Rachael is inspired by another pioneer, progress to executive ranks, as is Indigenous engagement can Dr Ruth Ann Cade who in 1954 was the first female engineering an inclusive culture and diversity be an integral part of our graduate from Mississippi State University. Dr Cade went on to of thinking. commitment, along with safety. become the Director of the School of Engineering Technology Kate Haines, who is Diversity and inclusion can make at the University of Southern Mississippi where Rachael earned supervising one of Boral’s largest a big difference in ensuring we her undergraduate and graduate degrees. Rachael says that concrete projects in , says are first choice for our customers role models are important. “We all have knowledge, skills, her exposure to a variety of roles and employees.” and experiences that are valuable, and when passed on, can and experience set her up well transform an individual or a team. Seeing others like themselves succeed provides real inspiration for current and future “Diversity and inclusion can make employees,” she says. Boral USA is committed to the principles of Equal a big difference in ensuring we Employment Opportunity and Affirmative Action. are first choice for our customers and employees” The research referred to in this story includes: Catalyst, “Why Diversity Matters”, July 2013; Bain & Company, “Creating a positive cycle: Critical steps to achieving gender parity in Australia”, 2013; Diversity Council of Australia, “Men Get Flexible! Mainstreaming Flexible Work in Australian Business”, August 2012; Catalyst, “Women in Australia”, 2015. For more information, refer to the Diversity Council of Australia website at www.dca.org.au.

BORAL NEWS | DEC 2015 | 15

FEATURE A DAY IN THE LIFE OF... BORAL’S NORTHERN TERRITORY QUARRIES

In the Northern Territory, Boral operates a sand quarry at Howard Springs and a hard rock quarry at Mount Bundey. They supply material for residential and commercial construction in Darwin, and a range of infrastructure projects throughout the territory.

A total of 30 employees and a number of contractors work at Howard Springs and Mount Bundey. Travis Potts, General Manager, Northern Territory, Quarries takes Boral News through a day at these facilities.

Weighbridge operators – Stephanie at Howard Springs and Lisa at Mount Bundey – call customers to confirm quantities Staff arrive at the sites where supervisors and and delivery timings of orders. They’re responsible for operators lead Toolbox talks, starting with a weighing trucks, printing customer dockets, dispatching discussion of safety hazards (including crocodiles vehicles from the quarries and lots more. Today there’s from the river behind the Howard Springs quarry!) and aggregate for road base being delivered from Mount Bundey the day’s plans. to the Ichthys Project Onshore LNG Facilities at Howard Springs Quarry 06:00 near Darwin, and deliveries to Boral’s 06:30 Winnellie concrete plant and others.

06:15 at Mount Bundey Quarry

Supplying NT’s largest construction project Boral and our subcontractor trucks cart aggregates in single, double, triple or quad road trains, carrying up to a 93.5 tonne payload. For the past three years, Boral has supplied up to 5,000 tonnes of quarry Operators and drivers begin their pre-start safety products per day to the Ichthys Project Onshore LNG Facilities. This requires inspections on all plant machinery, mobile equipment 20 triple road trains to complete three and vehicles. 100-kilometre each way trips per day! For the Ichthys LNG Project alone, trucks from Mount Bundey have driven Photo supplied by INPEX Australia over four million kilometres in three years!

16 | BORAL NEWS | DEC 2015 The raw feed goes into the wash plant, where wash hut Operators in excavators, a dozer and a grader begin Operator Remy controls a water cannon to spray the sand over stripping and campaign mining of the Howard Springs a screen to the slurry pump. During sand washing, an average sand quarry (this work takes place in the dry season). of 420 litres of water is used per second – all of it recycled on site via a series of settling ponds. 10:30 14:00 15:00 11:00

Pre-screened sand is The washed and loaded into dump trucks screened sand and carted up to the raw is stockpiled for feed stockpiles. Haul truck future sale. Boral’s drivers Hannah and Mark Howard Springs will spend about 10 hours quarry produces today carting materials three sand products from the pit. for use as bedding sand, in concrete, landscaping and other applications.

At Mount Bundey, drilling Laboratory Technician and blasting occurs Andrea takes samples about every three weeks. of sand from test After blasting, face pads at Howard loaders will fill haul trucks Springs and aggregate with material from the products from Mount quarry pit, which they Bundey for testing and cart to the tip bin of quality assurance at the crushing and the Howard Springs screening plant. laboratory. 14:00 8:00 13:00 11:45 Quarry products are stockpiled on site, before being loaded into road trains for customer orders.

Operator Peter uses the plant’s automated systems to manage and crush quarry materials. Mount Bundey quarry produces BORAL NEWS | DEC 2015 | 17 dozens of aggregate, rock and road base products.

FEATURE

“Our results compared with external safety benchmarks are good but the fact remains that our people know what needs to be done to achieve Zero Harm” Showing Michael Wilson, Group Health, Safety & Environment Director the way to

“Zero Harm is personal. It is unacceptable that we hurt people in the execution of our work when in the majority of cases we know it was avoidable”

Ross Harper, Executive General Manager, Boral Cement

Leadership Summit 2015 “What I learned from the summit was the power of leadership and More than 100 senior leaders, board members its impact on the behaviour of and managers from across Boral’s operations in our people. My teams are freshly Australia, the USA and USG Boral congregated in energised for a step change” Sydney in November for a leadership summit to discuss ‘Leadership for Zero Harm’. Greg Price, Executive General Manager, Construction Materials NSW/ACT Led by CEO & Managing Director Mike Kane and Group Health, Safety & Environment Director Michael Wilson, and with the help of guest speakers, panel discussions, workshops and debates, senior leaders shared insights and challenged each other over two days to ask, what does Zero Harm mean, why it’s important and how can it be achieved across all work sites. The outcome was resoundingly that Zero Harm can’t wait for a future date – in fact we must all strive to achieve Zero Harm Today.

“Our people are achieving Zero Harm in parts of our business today, so we know it’s achievable.”

Mike Kane, CEO & Managing Director

18 | BORAL NEWS | DEC 2015 WITH UP “Zero Harm is “Leaders need TO 30 NEAR ensuring that to listen to their MISS EVENTS everyone returns people about how REPORTED home from work in they can make DAILY, WE ARE the same condition their jobs safer they started” and easier” LEARNING & Paul Dalton, Executive General IMPROVING Manager, Construction Materials - Greg Smith, General Manager Southern Region Midland Brick

“In my mind, Zero “Can we get to a place where a Harm starts with a sales representative never has a promise, and that car accident, or an older employee promise starts loading product onto a ute never has a with me” muscle strain? I think it’s a challenge but it’s well worth the effort”

Paul Samples, President of Sales & Distribution Cladding, Boral USA Tony Charnock, Senior Vice President Asia Pacific, USG Boral

“It really shows that we care enough about ourselves and all our people to make Zero Harm our number one priority”

Dan Casey, Senior Vice President – Asia/Middle East, USG Boral

Dr Eileen Doyle, Chair of the Health, Safety & Environment Committee of the Board, was one of five Non-executive Directors of Boral who joined the discussion

“Several of our US roof tile plants “To me, Zero Harm are approaching 10 years injury is making sure all MORE THAN employees and their free, so we know that Zero Harm 150 SAFETY is possible. But we must have this families enjoy a HAZARDS ARE better life because same culture take root across all IDENTIFIED they come to work of our business” EVERY DAY at Boral”

Chris Fenwick, President of Boral Roofing, Boral USA Wayne Manners, Executive General Manager, Construction Materials WA/NT

BORAL NEWS | DEC 2015 | 19 IN THE COMMUNITY

APR MAY In the

CHARITY EVENTS FOR BACK TO SCHOOL FOR BORAL REDKITE RAISE $52,500! LOGISTICS Boral Construction Materials The Boral Logistics team from the WA hosted its second charity golf Wacol, Queensland, depot visited local day with customers and suppliers pre-school children to share stories at Joondalup Golf Resort, and about Boral trucks and raise combined with their annual awareness of road safety. The kids SCODY 5 Dams Challenge bike even got to sit in a truck cabin! Boral ride, raised a massive $52,527 for regularly conducts school visits in our Redkite. What an amazing effort! local communities to increase general Together with Boral’s corporate awareness of heavy vehicles on contribution to Redkite’s financial our roads and the importance of support services, in FY2015 we road safety. helped Redkite support 187 families of children with cancer. community

OCT NOV

SUN SHINES FOR FAMILY TAKING TO THE AIR FOR DAYS AT TARONGA ZOO CYSTIC FIBROSIS RESEARCH More than 600 Boral staff and their Boral’s Chief Procurement Manager families attended Family Days at Matthias Fuchs completed his third Taronga Zoo in Sydney, with bi-annual Flying for Kids with Cystic children’s activities and encounters Fibrosis challenge. He took off on a with a furry possum, a prickly 12-day odyssey with Qantas, flying to echidna and a bearded dragon. every continent except Antarctica. The zoo will celebrate its centenary After almost 200 hours in the air in 2016 with a series of events across more than 167,000 kilometres, throughout the year, starting with Matthias raised more than $200,000 New Year’s Eve celebrations for research into cystic fibrosis at in grounds. The Children’s Hospital at Westmead – beating his $150,000 target!

20 | BORAL NEWS | DEC 2015

MAY JUL/AUG SEP OCT

BORAL TEAM DOMINATES HELPING HANDS FOR LIVVI’S PLACE CASEY TAMWORTH COMMUNITY AT TRIATHLON HABITAT FOR HUMANITY OPENS TO THE PUBLIC MEN’S SHED DONATION Some of our super-fit staff in Boral Boral and USG Boral staff pitched Touched by Olivia proudly opened Boral donated 130 tonnes of Property Group and Boral in to help Habitat for Humanity their latest all-abilities, inclusive crusher dust from the Currabubula Construction Materials landscape and build homes in playspace – Livvi’s Place Casey Quarry in regional NSW to the Queensland took part in the areas impacted by the Black – at Marriott Waters Recreational Tamworth Community Men’s Shed AustralianSuper Corporate Saturday bushfires in regional Reserve in Lyndhurst, Victoria, with to use in its carpark area. Men’s Triathlon on the Gold Coast. The Victoria. At a home being built by a huge opening day attended by Sheds are community-based, team looked great in their green Habitat in Yea, two hours out of thousands. Boral is proud to have non-profit organisations that and gold uniforms, and clocked Melbourne, our team helped paint supported Livvi’s Place Casey with provide a safe and friendly up some impressive times in the ceilings and walls of Sheetrock® cash and concrete donations. We environment, and encourage relay-style swim, cycle and run Brand plasterboard which was are also supporting two other members to take an interest in event. Go team Boral! kindly donated by USG Boral. Touched by Olivia projects in their health and well-being. Ballarat, Victoria and Penrith, NSW.

NOV DEC DEC DEC

JPMORGAN CORPORATE BATTER UP FOR ALL-STAR BORAL SUPPORTS 32 SUPPORT FAMILIES OF CHALLENGE ACCEPTED BASEBALL GAME CONSERVATION PROJECTS KIDS WITH CANCER THIS A team of 20 Boral staff had a fun The Australian Baseball League Conservation Volunteers Australia CHRISTMAS night keeping fit in the JPMorgan All-Star Game Presented by Boral (CVA) and Boral supported Boral is getting into the festive Corporate Challenge in Sydney’s will be held on 16 December 2015 biodiversity and conservation projects spirit with a Christmas giving tree Centennial Park. They completed at Melbourne Ballpark in Laverton, in 32 schools and communities to raise funds for Redkite’s the 5.6-kilometre course with more Victoria. This annual contest sees across Australia in 2015, as part of our financial assistance program than 8,300 other participants from top Australian baseballers face the Connected Communities program. which provides essential support 341 Australian companies. Boral World All-Stars from top professional Projects ranged from the re- to families of children with cancer. ICT’s Hany Yacoub finished with leagues, including the USA’s Major establishment of wetland habitat in You can contribute in-person at the best time for Boral, followed League Baseball and Korea Perth to creating a wildlife corridor for head office in North Sydney or closely by team captain Raul Baseball Organisation from South the helmeted honeyeater at Yellingbo online via redkite.org.au/donate- Sicardi – well done to everyone Korea. Boral employees can access Nature Conservation Reserve in now. Happy holidays everyone! who participated! complimentary tickets for season Victoria. Boral has partnered with games at boral.com.au/baseball CVA since 1988.

BORAL NEWS | DEC 2015 | 21 Available in North America