RESULTS PRESENTATION HALF YEAR ENDED 30 SEPTEMBER 2008 5 November 2008 Insert pictures Presentation agenda Intro Sugar Building Products Aluminium Property Capital Outlook Introduction and overview Jerry Maycock, Managing Director Divisional results – Building Products, Sugar, Aluminium and update on Capital Projects Jerry Maycock Property and Capital Management Shane Gannon, CFO Strategic overview and outlook Jerry Maycock 2
INTRODUCTION steady result in difficult market conditions JERRY MAYCOCK Earnings increase in difficult market conditions Intro Sugar Building Products Aluminium Property Capital Outlook Group EBIT increased by 12 per cent to $177.4m � In difficult market conditions CSR increased group EBIT by 12 per cent � Stronger result from Sugar reflects higher raw sugar price and continuing improved returns from Refining and Ethanol – earnings weighted to second half of year � Significant operational improvement programmes across Building Products portfolio to maintain competitive position in deteriorating residential housing market � Aluminium earnings slightly ahead through higher realised price after hedging � Solid first half contribution from Property CSR continues to build medium term position � Continue to manage through challenging building cycle, operational improvements provide recurring benefits – Building Products well positioned for upturn in cycle � Value adding capital upgrade program is now significantly advanced with several major projects at or near completion � Positive longer term fundamentals remain for sugar, aluminium � CSR well positioned for medium term growth 4
Financial results summary Intro Building Products Sugar Property Outlook Aluminium Capital � EBIT 12% ahead of A$m 2008 2007 % ∆ previous period � Like for Like Group EBIT Trading Revenue 1,807.6 1,552.2 +16.5 (excl Viridian) up 5% EBITDA 255.9 229.1 +11.7 � Significant items include asbestos provision of EBIT 177.4 158.2 +12.1 $48m Net Finance Expense (54.9) (39.1) +40.4 � Finance expense represents impact of Tax Expense (32.4) (30.2) +7.3 increased net debt Outside Equity Interests (18.4) (16.6) +10.8 (predominantly to fund acquisitions) Net profit pre sig. items 71.7 72.3 (0.8) � Higher no. of shares on issue impacts EPS Net profit after sig. items 32.9 67.5 (51.3) � EPS pre sig. items 7.2c Interim Dividend 8.2c maintained at 6 cents per Interim DPS (fully franked) 6c 6c share, fully franked 5 EBIT by Division Intro Sugar Building Products Aluminium Property Capital Outlook � Building Products up A$m 2008 2007 % ∆ but weak residential market and cost pressures affect ‘like Building Products 74.8 66.3 +12.8 for like’ EBIT (down 7% ex Viridian) Sugar 27.8 22.4 +24.1 � Higher average Aluminium 70.4 65.9 +6.8 realised price and earlier start to the Property 12.6 7.6 +65.8 season improves Sugar earnings from Corporate (8.6) (8.6) poor previous period Restructure and Provisions 0.4 4.6 � Aluminium earnings slightly ahead Total EBIT 177.4 158.2 +12.1 � Property earnings weighted to 2 nd half � Group EBIT ahead in difficult markets 6
BUILDING PRODUCTS managing through the cycle to position for growth Building Products revenue summary Intro Sugar Building Products Aluminium Property Capital Outlook � Price increases implemented across Trading Revenue A$m 2008 % ∆ 2007 portfolio � Reasonable plasterboard volumes in Lightweight Systems Q1 commercial markets 239.7 213.7 +12.2 & insulation to all segments � Easter fell in first half 160.4 142.2 +12.8 Performance Systems last year � Abnormal energy - related cost increases 248.2 incurred in first half 104.8* n/a � Accelerated operational improvement programs 166.0 in response to weaker 159.0 +4.4 Bricks and Roofing markets *3 months of Pilkington only 8
Residential commencements lower than previous forecasts Intro Building Products Sugar Property Outlook Aluminium Capital Dwelling Commencements ('000) � Residential market represents ~ 70% of sales in Building Australia YEM09 Dwelling Commencements Forecasts 160 Products � Continued weak residential market activity affects market 155 5% decline volume 150 � Dwelling commencements have fallen further than forecast 145 from previous year � Latest BIS Shrapnel forecast commencements for YEM09 – 140 147,000 vs previous forecast of 155,000 and YEM 08 actual of 2007 Forecast 2008 Forecast 156,000 Source BIS Shrapnel � New Zealand – considerable decline in forecast commencements and YEM 08 actual of 25,600 New Zealand YEM09 Forecast Comparisons C o m m e n ce m e n ts ('0 0 0 ) Dwelling Commencement Comparison - Australia 200 25 D w e llin g 190 21% decline 180 20 170 Commencements ('000) 160 15 150 2007 Forecast 2008 Forecast 140 Source: Infometrics 130 120 110 100 Jun-93 Dec-93 Jun-94 Dec-94 Jun-95 Dec-95 Jun-96 Dec-96 Jun-97 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 May07 Forecast Oct08 Forecast Actual Source BIS Shrapnel 9 Underlying demand in Australia continues to accumulate Intro Sugar Building Products Aluminium Property Capital Outlook Dwelling Commencements - State (MAT) � Total forecast commencements in YEM 09 of 147,000 (BIS 60000 Number of commencements Shrapnel) vs underlying demand 50000 of 180,000 - underlying demand 40000 at record levels 30000 � Housing demand drivers: 20000 10000 � Affordability 0 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 � declining interest rates 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - - n - c n - c n - c n - c n - c n - c n - c n - c n - c n - c n - c n - c n - c n - c n - c n - u e u e u e u e u e u e u e u e u e u e u e u e u e u e u e u D D D D D D D D D D D D D D D J J J J J J J J J J J J J J J J � government stimulus Source: ABS NSW VIC QLD SA WA TAS ACT NT Dwelling Commencements vs Underlying Demand package 220 � Demographic Trends Forecast 200 � immigration levels remain high 180 Dwellings ('000) � strong population growth 160 � move to medium density 140 � Land availability 120 � land release 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dwelling Commencements Underlying Demand Source: BIS Shrapnel, CSR Analysis 10
Viridian – synergies achieved ahead of target Intro Building Products Sugar Property Outlook Aluminium Capital � Weaker markets and rising input costs Sept Sept have affected returns A$m 2008 2007 � Sharp unbudgeted increases in energy related key inputs (e.g. energy, PVB) Trading Revenue 248.2 104.8* � Price increases and freight recovery charges implemented EBITDA 39.4 18.8* � Additional cost out and price increases expected to recover substantial portion of EBIT 25.1 12.7* negative volume and input cost impact * Three months Pilkington � Dandenong shut down in first half will skew earnings to 2nd half � On track to meet original synergy target of $33m by YEM 10 – YEM09 synergies will exceed $22 million � Positive market for energy efficient glass - Viridian sales of energy efficient glass up over 50% on prior period � Further encouraging regulatory signals on energy efficient glass Coating Plant at Dandenong to support new CVD coater to produce low e glass 11 Managing through cycle for cyclical upturn Intro Sugar Building Products Aluminium Property Capital Outlook Operational and revenue improvement initiatives have also been accelerated across the rest of the Building Products portfolio: Gyprock � Reduction in overheads � Reduction in factory operating costs � New product releases Cemintel � Factory headcount reduction Bricks & Roofing � Realisation of the full year benefits from a further reduction in overheads � New product releases Bradford � Improved labour utilisation � Reduced waste � Leverage Asia sourcing in construction of new plant Building Products organisation � Combined structure to drive efficiency and productivity 12
SUGAR higher realised price and continued growth in refining and renewables Sugar earnings up on higher realised price and improved earnings in Ethanol and Refining Intro Sugar Building Products Aluminium Property Capital Outlook � Higher average realised price A$m 2008 2007 % ∆ improves Sugar earnings Trading Revenue 710.9 642.0 +10.7 � Fertiliser sales and fuel ethanol sales EBIT 27.8 drive improved 22.4 +24.1 ethanol earnings EBIT margin 3.9% 3.5% � Refining continues to grow as margins and EBIT by Business service propositions improve Raw Sugar Milling 8.1 5.7 +42.1 � Raw sugar earnings, ethanol weighted towards second half Refining 17.9 16.6 +7.8 of year Ethanol 4.5 1.7 +164.7 Other (2.7) (1.6) 14
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