Boral News Issue 1, 2014

BORAL NEWS APR 2014 FOCUSING ON MAJOR PROJECTS FIX, EXECUTE, TRANSFORM – WHAT DOES IT MEAN? DEER PARK LANDFILL Setting the record straight REINVENTING BRICK, STONE AND WOOD New products take centre stage SECRETS OF A SUCCESSFUL MAINTENANCE SHUTDOWN FROM THE CEO We’ve had a busy start to 2014 Boral’s half-year results reflected the benefits of streamlining the organisation, realigning the portfolio, reducing costs and constraining capital. I congratulate our employees on the hard work and improvements we’ve made across all divisions! The completion of the USG Boral joint venture on 28 February marked the start of an exciting journey for our FRONT COVER IMAGE: Blaine Bates, Boral’s South East Gypsum division and an important step in transforming Area Sales Manager in the USA, Boral into a more innovative and sustainable organisation showcasing new products at the International Builders Show in for the long term. A lot of hard work was needed to reach Las Vegas last month. this milestone so it was fitting to see that we had launch Photograph by John Grover. celebrations across the business. Boral News is published by Boral Limited ABN 13 008 421 761. The unlawful secondary boycotts being imposed on If you have an item of news Boral in Victoria by the CFMEU has received considerable for future issues, please contact: media attention. In an opinion piece I wrote: Linda Assatoury from Group Communications “Since the middle of 2012, the CFMEU has run an & Investor Relations orchestrated and very costly campaign against Boral for one simple reason: we have refused to give in to demands by the union that we stop doing business with one of our long-standing clients, the Grocon group, in Melbourne… our trucks have been stopped, our workers have been intimidated, some of our drivers harassed and threatened, and many of our clients in Victoria have had a ‘friendly visit’ from union officials warning them, essentially, not to do business with us... “When we have taken the CFMEU to court in relation to their boycott campaign, the courts have ruled in our favour. We had injunctions granted by the Supreme Court in Victoria, but these were simply ignored by the CFMEU – further proof that some in that union believe they are above the law.” Boral has a strong record of working closely with our employees and the unions that represent them. This CFMEU campaign has nothing to do with industrial relations in our own workplaces but, simply put, our employees and contract drivers deserve better. So far, we estimate the unlawful campaign has cost us over $10 million in lost sales and legal fees. It is this behaviour that makes me a strong supporter of the Government’s decision to have a Royal Commission into corrupt and unlawful behaviour in the industry. Mike Kane CEO & Managing Director Inside Features 05 12 Celebrating Deer Park landfill: Setting the launch of USG Boral the record straight Employees have celebrated the Our Western Landfill site at Deer Park 08 launch of our plasterboard and provides quality waste-management ceilings joint venture with USG services to Melbourne 08 14 In Focus: Reinventing Brick, Stone Major projects and Wood An increased focus on major At the builders show in Las Vegas, construction materials projects Boral demonstrated how we’re is paying dividends for Boral reinventing classic building materials 10 18 Fix, Execute, Transform Secrets of a successful – What does it mean? maintenance shutdown We’ve heard a lot about ‘fix, There were zero incidents during execute, transform,’ but what the recent shutdown of our biggest does it mean in practice? cement works. And here’s why Regulars 02 News 14 03 Products 04 People 06 Profile Anne Woolley, Project Director – Curtis Island LNG Projects 06 20 In the community BORAL NEWS | APR 2014 01 NEWS STOP PRESS PROPOSAL TO PRESERVE BRICK MANUFACTURING ACROSS AUSTRALIA’S EAST COAST Boral and CSR intend to combine Australian cladding industry has CSR’s CEO & Managing in the industry while delivering their East Coast brick operations faced major changes in demand Director Rob Sindel added: “This satisfactory returns through the in a move to strengthen the over the past 30 years resulting in joint venture is about retaining building cycle.” long-term sustainability of the a significant reduction in brick use. manufacturing in Australia and Further details are expected businesses, subject to clearance This joint venture is aimed at driving maintaining clay bricks as a following completion of the ACCC by the Australian Competition and efficiencies across the combined choice for consumers in a broader review process. In the meantime, Consumer Commission (ACCC). operations and provides a path for cladding market. It is about the businesses will continue Boral’s CEO & Managing Boral to realise acceptable returns strengthening the opportunity operating as normal. Director Mike Kane said: “The for our brick business.” for employees and reinvesting Boral announces significantly improved performance The investment community has given the thumbs up to Boral’s financial results to 31 December 2013, announced on 12 February. With a close to 50% increase in earnings before interest and tax (EBIT) on the corresponding period Midland Brick’s Kiln 8 in Perth, Western Australia, is being recommissioned last year, and over 70% improvement in underlying Midland Brick’s Kiln 8 recommissioned net profit after tax to $90 million, all four divisions as market activity strengthens contributed to the After it was mothballed in April 2012, almost $1 million “The strong lift in demand, coupled with very low improved earnings. will be spent in coming months to recommission Kiln 8 brick inventory levels has convinced us that now’s the Almost 300 people at Perth’s Midland Brick plant with a proportion of the time to bring the kiln back to life,” he said. including shareholders expenditure required for staff recruitment and training. The decision takes Boral’s total operating capacity and fund managers, General Manager of Midland Brick Greg Smith said in the Perth plant to 215 million standard brick equivalents research analysts and that the decision reflected the improved residential market per annum. brokers, bankers and activity in Western Australia after a downturn. employees tuned into the briefing held in Sydney to hear Mike Kane and the team present the result. Market and operational Boral’s hardstand solution at Koolkhan a winner improvements, Engineering managers with construction materials benefits from prior year have solved the problem of sourced from Boral’s Tevan restructuring activities the soft, swampy ground quarry. The installation was and favourable weather around Boral Timber’s project-managed by the conditions in Australia in Koolkhan Sawmill near site’s management team the first half were factors Grafton by installing a new, and delivered at two-thirds behind the growth. resilient and cost-effective the cost of a traditional The reported statutory surface. The poor subsoil concrete slab. Nearly result was a $26 million conditions of the 1,200m2 two years on, the surface net after tax loss for the log merchandising area has been highly resilient half year after largely have been transformed by under arduous conditions, non-trading items the ECOFLEX® Australia standing up well to the skid- associated with the system which uses steer vehicles and proving USG Boral joint venture modified, used truck tyres to be a cost effective way to which will be offset in the to form an interlocking create a solid surface over second half of the year. Koolkhan hardstand solution uses modified, used truck tyres mat, which is then filled poor subsoils. 02 | BORAL NEWS | APR 2014 How to Choose Bricks ® Here’s a few helpful tips when choosing bricks for your home. horizon PRODUCTS FIND A HOUSE STYLE FOR YOU Before selecting bricks it’s worthwhile gathering ideas on the style Classics Hinterlands Naturals of house you’d like to build, as the design can greatly inﬂuence This enduring range has beautifully This strong staple of colour through bricks has This stunning range of bricks has been designed the type of bricks you use. Check out some examples of house styles in Boral’s Get The Look brochure as well as brick and roof textured bricks with a slightly a rough velour ﬁnish with a square edge and to match modern colour trends and housing styles. tile colour combinations and useful building information. tumbled edge and light colour coating. consistent colour. The Horizon Naturals range is colour coated with Now you’ve chosen ‘the look’ you want, what’s next? a slightly rounded edge for distinction. DID YOU STEP 1: YOUR HOME LOCATION TheWhilst retaining the c lasslatestic St George, Windorah and Outb ackin Blend, exteriorsThe Naturals continue to grow in popu larity and we are proud to this simple colour range has been extended to include the all important introduce six new colours to create a fresh modern palette. KNOW? The location of your home will help determine the type of bricks grey and brown toned bricks for a more modern look. The new colours focus on Greys and Silvers with the inclusion of and mortar joints you need. Exposure grade (EXP) bricks are made – new products from Bricksan ever popular white-cre amEast. to withstand severe coastal conditions, including homes subject to air borne salt spray. These bricks have enhanced durability ideal if GIRRAWEEN EMERALD NEW MITCHELL NEW STONE BEIGE NEW PEARL WHITE NEW your home is located up to 1 kilometre from a surf coast or 100 metres from a non-surf coast, on land with high saline soil, or is near a polluted atmosphere (such as an industrial site). Three new General Purpose (GP) grade bricks are suited to all other building types and locations.

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