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PEOPLEWelcoming our newChairman Dr Brian ClarkPrevious Chairman Dr Bob Every and Boral’s new ChairmanDr Brian ClarkDr Brian Clark was welcomed as the newChairman of Boral at the end of the 2015Annual General Meeting (AGM) on5 November, as Dr Bob Every steppeddown from the Board.Brian joined Boral as a Non-executiveDirector in May 2007, and has experienceas an executive and director in Australasia,Japan, China, Italy, the UK andSouth Africa.“On behalf of the Board, management,Boral’s employees and shareholders, Ithank Bob for the important role he hasplayed in steering the business in the rightdirection, for ensuring Boral has had theright type of leadership and culture at theright time and for maintaining the highestlevel of corporate governance standards,”said Brian at the AGM.Also announced ahead of the AGMwas the appointment of Karen Moses as aNon-executive Director, effective 1 March2016. This will maintain the size of theBoard with eight directors, including sevenNon-executive Directors – four of whomwill be female.“ On behalf of the Board,management, Boral’semployees and shareholders,I thank Bob for the importantrole he has played insteering the business inthe right direction”Chairman, Brian ClarkOur inspirational NT youngachieverDeveloping tomorrow’s leadersAndrea Hodgson, a Laboratory Technician at the HowardSprings quarry in the Northern Territory, was recognisedat a National Association of Women in Construction(NAWIC) awards night in September.Andrea won the Laing O’Rourke Award to a YoungAchiever or New Starter for her achievements in her firstpost in the construction industry, having come from ageology and mining background. NAWIC’s Crystal VisionAwards recognise inspirational women who play a crucialrole in the construction industry.Following the success of last year’sinaugural program, 21 leaders from Boral’sConstruction Materials & Cementoperations have been selected toparticipate in this year’s Future LeadersProgram.“ The program so far hasbeen extremely insightfuland has helped challengeme as to whether I amspending the right amountof time on the right activityand how to be a higherperforming leader”Aimed at operational leaders, over sixmonths participants will focus on selfdevelopment and how to bring Boral’sstrategies to life. The program is designedand delivered in partnership with theAustralian Graduate School ofManagement (AGSM), and providescredits towards an MBA.Chris Barras, General Manager Salesfor Concrete in the Southern Region, saidthe experience has been invaluable. “Theprogram so far has been extremelyinsightful and has helped challenge me asto whether I am spending the right amountof time on the right activity and how to bea higher performing leader,” he said.In addition, 22 leaders participated inthe new Emerging Leaders program inOctober. Aimed at supporting new managersin frontline roles, the program will seeparticipants recovene in April afterdelivering Skilled 4 Action training modules.Andrea Hodgson from Boral Quarries, Northern TerritoryLearning@Boral congratulates graduatesIn 2015, the national learning and development hub for Boral’s Australian operations,Learning@Boral, has proudly supported employees to graduate with a range of nationallyrecognised qualifications and from accredited short courses.This has included a dual qualification of Certificate III and IV in Competitive Systemsand Practices – a new program aligned to the Boral Production System – as well asCertificate II, III and IV, Diploma and Advanced Diploma qualifications in SurfaceExtraction, Certificate III in Civil Construction and Certificate IV in Laboratory Techniques.Congratulations to our graduates and course participants for their dedicationand achievements.Institute of Quarrrying NSW graduation night4 BORAL NEWS DEC 2015

FEATUREBORALTRUEXTERIOR TRIM GETSINDUSTRYTHUMBS UPIn the USA, Boral TruExterior Trim has been named amongthe best of the engineered exterior trim category recently byindustry expert and veteran carpenter, Gary M. Katz.In assessing cost, installation requirementsand performance attributes of a rangeof 10 of the latest modern exterior trimproducts, Boral TruExterior Trim wasreviewed very favourably. Gary highlightedthe product’s workability in cutting andmilling and its ease of installation, withless cumbersome fastening and finishingrequirements compared to competingproducts.As Gary explains, “The most recentengineered trim option is made from resinand fly ash, a waste product of coalgenerated electricity.” Boral is currently theonly manufacturer of fly ash trim. Industryexperts like Gary are beginning to recognisethe poly-ash technology as a new materialtype, unlike any other man-made material onthe market today.Of the 10 trim products reviewed,Boral TruExterior Trim is the only productapproved for ground contact. This isbecause, unlike other products, fly ash trim isboth moisture resistant and thermally stable.Made of 70% pre-consumer recycledmaterials, the TruExterior suite of trim andsiding products has been developed atBoral’s Innovation Factory. Unlike traditionalwood products, they are low-maintenanceand resistant to moisture, rotting, crackingand splitting. They don’t need priming orsealing and can be installed usingconventional woodworking toolsand methods.Gary has specialised in finish carpentryfor over 35 years. He is a contributingeditor to Fine Homebuilding magazine andproduces the Katz Roadshow, whichprovides contractor-taught constructiontraining and hands-on education for theconstruction industry.Boral became a Global Sponsor ofthe Katz Roadshow in 2015, after asuccessful year as a key sponsor in 2014.Reaching nearly 2,000 contractors per year,the roadshow has proven to be effective inhelping Boral to increase awareness of BoralTruExterior Siding and Trim products.Today’s BestExteriorTrimA veteran carpenter sorts through10 of the latest engineered optionsBy Gary M. KatzNot too long ago, the only material used for exteriortrim was old-growth lumber—Douglas fir and redwood on the West Coast; yellow pine, white pine,and cedar on the East Coast; southern yellow pineand cypress in the South. Because of changes in forestry andthe introduction of innovative materials, home builders andhomeowners today have a host of trim products to choosefrom. All of these engineered-trim options promise to bedecay resistant and easy to work with and to perform better than the new-growth lumber stocked at the lumberyard. However, each has its own unique properties thatyou need to understand before using it in the field.I first wrote about engineered trim 10 years ago forFine Homebuilding, and a lot has changed since then.Many of the products I reviewed in that story are nolonger available, while many others have changedso much that they no longer resemble the originals. It’s time to take a fresh look at modernexterior trim in order to help you choose theright product for your next project.Gary M. Katz is a contributing editor.Photos by Rodney Diaz, exceptwhere noted.Photo: Charles BickfordAuguSt/SEPtEMBEr 201561“Today’s Best ExteriorTrim” by Gary M. Katzwas published in theAugust/September2015 issue of FineHomebuildingmagazine in theUSA. Reprinted withpermission courtesyof Fine Homebuildingmagazine TheTaunton Press, 2015.BORAL NEWS DEC 2015 5

BRIANBELOWPROFILETaking a new concept fromthe laboratory throughto commercialisationand then turning it intoa new business fromscratch is no easy task.But that’s exactly whatBrian Below, President ofBoral USA’s Light BuildingProducts business, hasdone. He’s leading theway for future innovationsand exemplifying what’srequired for the Transformphase of our Fix, Execute,Transform program.Boral News caught up withBrian when he was recentlyin Sydney.6 BORAL NEWS DEC 2015BORAL NEWS: Tell us a bit aboutyour career before joining Boral.BRIAN BELOW: I earned myundergraduate degree in chemicalengineering from Georgia Tech. While there Ihad the opportunity to work for a division ofJohnson & Johnson on the development ofwhat’s now Splenda , the artificial sweetener,which gave me valuable hands-onexperience. After graduation, I worked forseveral years in Texas for Solvay Polymers ata large production facility that was laterbought by BP. It gave me a whole differentperspective on industrial scale and scope aswell as exposure to large, multi-nationalcompanies. Then in 2003 I decided to pursuean MBA at UCLA’s Anderson Schoolof Management.BN: Why did you join Boral? Whatattracted you?BB: I’ve always worked for companiesthat manufacture things. After my MBA, Iwanted an opportunity where I could use mymanufacturing and business school training– and Boral provided that opportunity. I alsowanted to be part of a company that wasplanning to invest and grow. This was back in2005 – before the GFC – during the boomyears for the US housing market. I started in acorporate strategy and planning role at Boral’sUS headquarters in Roswell (Atlanta) and thenmoved into a product development role in theResearch & Development (R&D) group, what’snow the Boral Innovation Factory. Our work inR&D led to the formation of Boral CompositesInc. as a start-up business and thecommercial launch of Boral TruExterior Trim.It’s been an exciting journey! I celebrated10 years with the company in September.BN: Tell us more about what you doin the Light Building Products business.BB: It includes the Boral Versetta Stone and Boral TruExterior Siding and Trimproducts, all of which represent new-tomarket platforms for Boral. Our aim is tosuccessfully commercialise these productsacross different geographies, channelsand segments.They’re quite different to our longestablished, traditional products in the US of

and then to commercial manufacturing.A scale-up like that is challenging and in thiscase we were working with a new technologyand unique manufacturing process. It’s acredit to our strong operations and R&Dteams that we’ve overcome the challenges.We’ve been working with this technologyfor less than nine years, and have beencommercial about four years, so there’stremendous opportunity as we continueto grow.“ We wouldn’t existwithout innovation;it’s a must-have for usto maintain our rapidgrowth”bricks, roof tile and veneer stone. In additionto diversifying our business, these productsare more variable cost driven with lowercapital intensity and higher returncharacteristics.BN: What’s been the hardestchallenge in commercialising a conceptand bringing a totally new productto market?BB: The biggest challenge has been inlaunching unknown materials and products todistribution channels and geographiesoutside of our traditional businesses. Themarket already has a choice of incumbentproducts from well-known brands so we haveto make our customers aware of our newproducts and why they’re better. Like withmost things people can be afraid of takingchances, there’s a natural reluctance to trysomething new. In developing our marketingplans we focus a lot of our initiatives arounddriving awareness and inducing trial.Internally the challenges have beenaround launching a start-up business.Historically in the USA, Boral has grownthrough M&A or expanding capacity inexisting businesses. There really was noplaybook for creating a new business fromscratch so we had to work our way throughthe process.Another key challenge was taking thetechnology from the lab scale to pilot scaleBN: What’s been the key to thesuccess of the business to date? Anylessons?BB: A clear vision for where we want togo, a solid strategy on how to get there, andsupport from management in providing theresources to make it happen. In addition,we’ve been fortunate to have greatcollaboration, not only from the BoralInnovation Factory but with all the teams.We’ve learned a tremendous amount.As a start-up having the right people, with theright skills and culture in the right roles is vital.Everyone has to be committed to the visionand to be part of growing something fromnothing. We’ve been able to overcome a lot ofchallenges because of the talent, passion andperseverance from the folks on our team.BN: How important is productinnovation for a sustainable Boral?BB: Mission critical! Traditionally thebuilding materials industry has been slow tochange. Many products have been around,essentially unchanged, for decades if notcenturies. Unlike, say the semiconductorindustry, the importance placed on productinnovation has not been as high as in otherindustries. However, I believe that the rate ofchange in our industry is accelerating and asthis plays out, companies that adapt andrespond will succeed and grow and thosethat don’t will suffer. As part of our Fix,Execute, Transform program, innovation iscritical to our growth. For Light BuildingProducts for instance we wouldn’t existwithout innovation; it’s a must-have for us tomaintain our rapid growth. In fact, ourmedium-term aim is to have half our futurerevenue come from new products.BN: What are some of the challengesfor the Light Building Products businessover the next five years or so?BB: One of the challenges is continuingto scale the business to match growth. Froma resourcing and organisational designperspective, as well as the systems andprocesses we use, everything needs to besufficiently scalable. Maintaining the culture,particularly the focus on Zero Harm, isalso critical.BN: What excites you about the futureof the Boral USA business?BB: After coming through the GFC andbreaking through to profitability in FY2015,there’s a lot of optimism about our business.The US businesses are launching newproducts, improving our service platforms andexpanding our manufacturing capabilities.I’m excited about how our businesses arepositioned for the market recovery and what’sbeing done to further diversify the US portfolioand improve performance. Also, our focus onsafety over the last several years is exciting.BN: Best advice you ever received?BB: Before starting my first role, my Dadtold me that if I wanted to do well I shouldspend as much time as possible with theexperienced operators, supervisors andmanagers and try to absorb everything theyknew about the business. In essence, hewas telling me to be humble and never stoplearning. It was advice that served me welland I’ve tried to keep that mindset ever since.BN: What do you do in your sparetime?BB: I have a lot of different interests andhobbies but most of my spare time thesedays is spent with my wife and two children.Our latest trip is to Peru to visit Machu Picchuand the Amazon.“ I’m excited abouthow our businessesare postioned for themarket recovery”BORAL NEWS DEC 2015 7

FEATURE“ We workin partnershipwith ouropmanagem erationalent teams asearly as poliberate v ssible toalue, reduc e ou rcosts andcbased op reate marketpGood, ea ortunities.rlyconsiders planning thatthend use o e potentialfcannot o a propert ynlyconsidera make us absave us m le profit, it canoney in fuas well.”tureMANAGING OURPROPERTIES TOMAXIMISE VALUEWhen you think of Boral, property may not be the first thingthat comes to mind but in fact property sales are a normalpart of our operations. When our quarries, concrete andasphalt plants and other operations come to the end of theireconomic lives, they are replaced with alternate operations atother sites. The land, which can become more valuable as aresult of urban growth, is then sold. Because of this, wemanage a network that is continually adjusting and changing.In Australia, Boral has more than 400 operating and 120distribution sites, most of which are owned, not leased. Themanagement of our Property portfolio is the responsibility of ourConstruction Materials & Cement division which has the largestshare 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 earlyas possible to maximise returns and ensure the portfolio ismanaged efficiently.Indeed, Boral Property has contributed an annual average of 36 million to earnings over the past 10 years, and 24 million peryear over the past five years following the completion of major,multi-year re-developments of an old Boral brick site at Moorebankand our old Prospect Quarry, both in Sydney.A prime focus in the past five years has been streamlining theportfolio and our balance sheet. But significant developmentopportunities and exciting new projects will see the companyplacing even greater reliance on the skills of our Property Groupin the years ahead.operatingacross Au sitesstraliaPROPERTY PIPELINEAt any one time, we have 20 or moreproperties in the pipeline, with earningspotential and timing of sales dependenton a range of factors.There are currently 20 discrete, lower valuesites in the pipeline, including: Properties in WA, including surplusbuffer lands and former clay pits, tocontribute to earnings from FY2016 Ex-concrete sites in NSW, subject torehabilitation/rezoning, could contributeto earnings from FY2017/18 Bridgewater Quarry, Tas, subject torezoning, has potential benefit fromFY2017/1810-year averageProperty/QEU earnings 36m5-year averageProperty/QEU earnings 24m54474732 40% stake in Penrith Lakes Development(former quarry), NSW46 Stapylton Quarry, Qld Donnybrook Quarry, Vic Jandakot Masonry site, WA Scoresby brick site, Vic Nelsons Ridge, NSW – final twocontracts could deliver 10 – 15mof earnings over two years from FY20168151420FY1320FY20FY121120FY20FY100920FY088 BORAL NEWS DEC 201520FY0720FY0620FY20FYExcludes significant itemsDevelopment opportunities in the pipeline:2828121400 Surplus land around the Stonyfell Quarry,SA, could deliver potential benefit inFY2016/17EBIT1, A million56Brian TaskerNational General Manager ofBoral Proper ty Group

FU T URPAST EX AME L ANDD E V ELO PM ENT O PPO RT U NIT Y2PLEStapyltowhich m n Quarr y in Queeay b e worth 1 nsland is a 925m to 30m in -hectare sitefuturePAST EXAMPLEectareas a 330 -h d Quarr ys, NSW, wantnetaenysmreopl develrr y in Gfromresidentiaspect Quam in EBITFormer Pro ed as Nelsons Ridge g in excess of 190tinopraelnet, gesite devtrial precincWest indus1520to20 0 0Former Moorebank brickworks in NSW was a109-hectare site developed as Georges Fairresidential park, generating 150m in EBIT from2003 to 2015120FU T Udistributionsites acrossAustraliaOPPORTUNIT Y2sed to therrently lea n option toucisa,rietoe, VicMelbournld have aMelbourncoresby,5 we cou0 million ifScoresby, tare brick site in S However, after 202 h in excess of 10rt.ecThe 171-h ricks joint venture estimated to be woByBoral CSR , which is currentl pment is realisedlondsell the la zoning and redeverepotentialFUND DEVTURE LATELOPMEN2RE LANDDE VELOPMEN TO PP ORT U NIT Y2The foPenrit rmer quarrhBoral Lakes D y servicingehrezon as a 40% velopmen all of Sydntee5,000 d with po share, is b in NSW in y, thetee famwilies ntial for it ing rehabil hichto become itated andhometoPotential sale proceeds / value assumes future land value if rezoned and rehabilitated as plannedBORAL NEWS DEC 2015 9

MAINSTORYBuilding a diverseand inclusive culturePictured: Experienced concreter, Tony Ianni, and young leading hand,Natale Mascera on site at a Boral De Martin & Gasparini operation10 BORAL NEWS DEC 2015

With the help of Boral’s DiversityCouncil, there is a renewed focuson diversity and inclusion in theworkplace. Boral News talks toWayne Manners, Chair of Boral’sDiversity Council, about thebenefits that diversity and inclusionbring and we share stories fromacross our businesses.Buddying brings togetherthe generationsDealing with the challenge of an ageing workforce is nothing newfor Boral’s De Martin & Gasparini operations in Sydney, Australia.The concrete placing specialists have traditionally had a mix ofolder and younger team members in their crews.“It brings a uni

the Emu Plains Quarry delivered its last truckload of sand and gravel on 21 September 2015. Emu Plains Quarry sourced its raw feed from the Penrith Lakes Scheme, of which Boral is a 40% shareholder. At its peak, the Penrith Lakes Scheme was the largest quarry in the Sydney basin, supplying up to 80% of the sand and