20011120 Presentation HYES01 NNSBW

Slide1: 

Performance & Growth RESULTS PRESENTATION 6 months ended 30 September 2001

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Part 1 Group financial performance Part 2 Business performance Part 3 Strategy Part 4 Outlook Agenda

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A$m change Strong results reflect improved performance and growth 3,712 514 739 277 545 360 14.5% 12.7% 29.1c 11c + 9% + 2% + 7% + 2% + 32% + 45% + 0.6pp - 0.9pp + 10% n/c Trading revenue EBIT EBITDA Net profit Operating cash flow Free cash flow* ROFE (MAT) ROE (MAT) EPS Dividend per share * EBITDA after deducting tax & net interest paid, operating capital & change in working capital

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HYES 01 HYES 00 % change Rinker Materials Corp 335 269 + 25% Construction Materials (Aust & Asia) 32 - 33% Building Materials (Aust, NZ & Asia) 48 415 403 + 3% 79 29 + 170% 55 109 Sugar Corporate costs - 49% A$m EBIT (16) (14) International Building Materials Restructuring, one-offs, other EBIT breakdown A$m (22) Aluminium 48 170 155 + 10% US$m 86 - 44% (20)

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CSR Group A$m EBIT EBIT variance analysis 514 4 510 -51 -55 36 55 18 48 475 -30 505 -16 400 450 500 550 600 650 HYES01 Rinker YES01 acquisitions HYES01 comparable Aluminium Inflation Volume Exchange rate OIP Pricing Sugar HYES00 Continuing Divested businesses HYES00

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Volume (+) Price (-) Price (+) Volume (-) Price / Volume matrix Rinker quarries Rinker concrete Rinker pipes Rinker cement Plasterboard Fibre Cement Bricks Rinker wallboard distrib’n Aust concrete Aust quarries Humes pipes & structural Roofing Insulation

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EBITDA margin & cash flow Operating cash flow A$m* EBITDA / Sales % * Net operating cash flow after tax

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Financial ratios Return on funds employed % Return on Equity %

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Strong financial position Gearing % (net debt / net debt + equity) Interest cover (times) HYES01 HYES01

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YEM 97 98 99 00 01 HYES01 Operating capex at sustainable levels Growth spending ongoing but at a slower rate A$ million Development capex Operating capex 691 538 606 538 1660 453 289 422 336 238 220 202 184 249 1440 278 154 124 6 months only

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Part 1 Group financial performance Part 2 Business performance Part 3 Strategy Part 4 Outlook Agenda

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EBITDA margin for the half year 22.8%, up from 21.1% Quarry prices up strongly Concrete volumes up 2%; Florida Materials US$ EBIT up 23% Concrete pipe US$ EBIT up 25%; prestress down US$7m Wallboard distribution EBIT fell US$7m; prices fell steeply Acquisitions in for their first full year in YEM02 delivered US$33m in the half Rinker Materials Corporation EBITDA/Sales % (A$) 17.8 21.2 ROFE % (US$) 17.8 15.0 15.6 22.8 A$m HYES Revenue EBIT EBITDA Funds Empl 01 2,115 335 483 3,954 00 1,745 269 369 3,649 +21% +25% +31% +8%

Over 80% of Rinker revenue from high population growth states in US: 

Over 80% of Rinker revenue from high population growth states in US External revenue by product Revenue by state Nevada 7%

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Benchmarking shows Rinker performing satisfactorily relative to competitors Source: published quarterly reports; Rinker analysis US$ calculations Lafarge Nth Am Texas Ind (to Aug 01) Vulcan Martin Marietta Florida Rock (to Jun 01) Rinker Sales (US$ million) 3165 1249 2726 1435 685 2044 Sales growth 12% -8% 11% 6% 9% 9% EBIT growth -27% -66% -6% -16% 15% 21% EBITDA / Sales % this year 17% 13% 24% 24% 22% 22% 22% 20% 25% 27% 20% 19% EBITDA / Sales % prior year

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EBIT down 33% to A$32m Concrete and quarry results in line with competitor performance Improved result on half-year Oct 00 to Mar 01 Pipe activity now beginning to pick up; infrastructure spending forecast late year Planning for price increases New management EBIT from Asian operations increased Construction Materials (Aust & Asia) EBITDA/Sales % 15.9 11.0 ROFE % (mat) 14.4 6.8 4.7 11.9 A$m HYES Revenue EBIT EBITDA Funds Empl 01 476 32 57 755 00 501 48 74 846 -5% -33% -23% -11%

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Building Materials (Aust, NZ & Asia) EBITDA/Sales % 20.7 20.2 ROFE % (mat) 24.3 22.4 15.6 16.2 A$m HYES Revenue EBIT EBITDA Funds Empl 01 395 48 64 623 00 494 86 105 644 -20% -44% -39% -3% EBIT down 44% Housing starts down 34% (on a 3 month lag basis) over the half EBIT margin 12.1% significantly higher than last cycle low of 6.1% (HYES96) Asian operations profitable Strong lift in housing approvals now starting to flow through to activity Rosehill tile plant on track for mid-2002 opening

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Australian building activity vs Building Materials ROFE & EBIT margin

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EBIT up 170% to A$79m assisted by sugar price Crop volumes only slightly recovered Tonnes crushed at 8.75mt, down 6% on pcp Distilleries profit up 19% - higher margins & sales growth Refineries profit impacted by higher input costs in Australia; NZ performing strongly. No 2nd half profit contribution expected Milling Refineries Distilleries Other A$m HYES Revenue EBIT EBITDA Funds Empl 01 505 79 97 760 00 388 29 48 731 +30% +170% +102% +4% Sugar EBIT up 170% but crop size still well down

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$1458 HYES00 HYES01 GAF EBIT A$M GAL EBIT A$M YEM 00 01 02 80 82 $1544 Aluminium tonnes sold ‘000 Avge US$/tonne world aluminium price Aluminium EBIT down 24% Average price down 6% to US$1458 Slowing global economy impacted Hedging of currency and metal price has insulated returns Expect H2 EBIT close to first half result * Excludes GAL – divested Jan 01 55 183 111 145 212 72 67 YEM02 estimate

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Part 1 Group financial performance Part 2 Business performance Part 3 Strategy Part 4 Outlook Agenda

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Narrowing business portfolio A$1.5bn divestments since March 98 SVA as key business driver Improve ROE Share buyback Sugar Refining JV Production Partnerships Delivering $100m p.a. Performance incentives Focus on SVA Owners team Accountability Performance culture Primarily US growth strategy A$1.6bn since March 1998 Potential for further acquisitions Bolt-ons US$200m pa Tight post-acquisition management Flatter structure High performance Cultural change Shared services Performance and growth …. Six strategy levers all contributing

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Strong growth in earnings per share & cash flow since 1997 EPS CAGR 24% YEM97-YEM01 Operating cash flow per share CAGR 11% YEM97-YEM01 21.6 28.4 33.9 45.5 50.3 52.9

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International building materials 22% CAGR in EBIT and 9% CAGR in sales YEM97 to YEM01 Revenue A$M EBIT A$M 3859 4035 4588 4682 5372 2986 H Y E S 0 1

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International building materials 16% CAGR in EBITDA YEM97 to YEM01 and higher margins EBITDA A$M EBITDA margin % H Y E S 0 1 H Y E S 0 1

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Performance improvement program continues A$55m in HYES01 cost savings Rinker Materials Corporation A$39m Building Materials A$6m Construction Materials A$6m Sugar A$3m Corporate A$2m

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An important strategic objective Improved profit performance is a positive Uncertain global outlook probably means no outcome this financial year Continuing to support the business and improve stability of returns Will look at value-adding growth options in Australia Higher EBIT this year benefiting shareholders Sugar separation

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Growth in heavy building materials Key acquisitions by Rinker since April 2000

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Rinker growth strategy focused mainly on high population growth states in US south

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Sales revenue around US$2 billion p.a. in 31 states # 3 in US building materials # 1 in concrete pipes # 6 in aggregates # 3 in pre-mixed concrete # 1 in Florida cement Rinker has strong market positions

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Acquisitions are adding value Margins higher than Rinker base business acquisitions since Mar 98 base business

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Part 1 Group financial performance Part 2 Business performance Part 3 Strategy Part 4 Outlook Agenda

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Outlook Generally positive but overlaid with caution Construction and building activity improving in Australia

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1997/98 (actual) 1998/99 (actual) 1999/00 (actual) New housing Alterations and additions Non-residential Building Engineering Construction Constant 1999/00 prices $ million Building & construction in Australia - value of work done p.a. (year ended June) Source: HIA 30 Oct 01 f’ct YEJ01 to YEJ02 Projected change 2% 3% 24% 11% 1% YEJ02 to YEJ03 4% 5% 2% 2000/01 (actual) 2001/02 (forecast) 2002/03 (forecast) 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 Non-residential Building Alterations and additions New housing Engineering Construction

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Outlook US housing and non-residential activity levels down but infrastructure spending (50% of aggregate volumes) will partly offset; government stimulus initiatives will assist Generally positive but overlaid with caution Construction and building activity improving in Australia

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Source: Dodge Q3 2001 Put in Place activity forecast (constant 1992$) (preliminary & unpublished) US construction forecasts (post 11 Sept) predict strong non-building activity but lower overall Change 2002 vs 2001 USA Florida Residential -3.8% -8.2% Non-residential -5.1% -6.5% Non-building 14.4% 26.7% Total -0.8% -3.2% Total value (US$m) 2000 (a) 2001 (f) 2002 (f) USA 367,230 370,961 368,120 Florida 28,272 29,517 28,576

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Outlook Value adding growth will continue : further bolt-on acquisition opportunities expected but larger acquisitions unlikely in short term Full year profit will not include YEM01’s A$27m sugar terminal benefit or Gove alumina earnings CSR Group will continue to push for top quartile performance in the global building materials sector Generally positive but overlaid with caution Construction and building activity improving in Australia US housing and non-residential activity levels down but infrastructure spending (50% of aggregate volumes) will partly offset; government stimulus initiatives will assist