Adelaide Brighton : Annual General Meeting Presentation

ANNUAL GENERAL MEETING

19 MAY 2020

COVID-19 UPDATE

• Crisis Management Team established and meeting daily to manage coronavirus impacts on our business
• Employees and sites remain COVID-19 free
• Over 400 non-operational staff working from home
• Duplicate control rooms and teams established to protect ongoing operation of major facilities in case of COVID-19 infection
• All sites remain operational
• Construction and mining sectors remain 'open for business' with government support

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SAFETY 'STEP CHANGE' PROGRAM

TRIFR*

38.9

33.8

30.1

25.5

16.2

2015

2016

2017

2018

2019

• Sustained focus on safety and injury reduction delivering results
• Total Recordable Injury Frequency Rate (TRIFR) 16.2 at December 2019, 36% improvement over the last 12 months
• Safety "Step Change" - newly staged program to deliver next phase of continuous improvement in health and safety

*Total Reportable Injury Frequency Rate (TRIFR) is the number of recordable injuries per million man hours worked Adelaide Brighton's TRIFR includes employees and contractors.

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2019 FINANCIAL SUMMARY

REVENUE ($M)

1630.6	1517.0
FY18	FY19

UNDERLYING EBIT1 ($M)

273.5
	186.4
FY18	FY19

UNDERLYING NPAT1 ($M)

191.0
	123.0
FY18	FY19

UNDERLYING ROFE1 (%)

16.6
	11.2
FY18	FY19

UNDERLYING EPS1

(CENTS)

29.4
	18.9
FY18	FY19

DPS (CENTS)

Ordinary Special

28.0

8.0

20.0 5.0

FY18 FY19

1 "Underlying" EBIT, NPAT, ROFE and EPS exclude significant items. Refer to page 50 of the 2019 Annual Report for a reconciliation of reported earnings

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2019 OPERATING CONDITIONS

RESIDENTIAL APPROVALS

(000'S)

140

120

100

80

60

40

20

0

2018			2019
		Detached		Multi

Source: ABS

ENGINEERING WORK DONE

(EX MINING) ($B)

80

70

60

50

40

30

20

10

0

2018

2019

tonnes GOLD PRODUCTION & PRICE US$/oz

350				1,500
300				1,400
250
200				1,300
150				1,200
100
50				1,100
0						1,000
2018		2019
			Production		Price

LIME SALES (000'S T)

1,200

1,000

800

600

400

200

0

2018

2019

Construction

• Decline in both detached and multi- residential approvals impacted revenue
• Access to funding and lower consumer confidence impacted residential demand
• Delays have pushed out infrastructure project timelines, adversely impacting 2019 demand for construction materials

Mining

• 2019 has seen multi-year highs for the US dollar gold price and record highs for the Australian dollar gold price.
• Market responding to global economic slowdown and geopolitical uncertainty
• Gold exploration rose by approximately 15% year on year with WA exploration accounting for almost 70% of total gold exploration spend
• Mining supported increases in lime and cement volumes in WA and NT
• Alumina production and sales volumes remained stable in 2019

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GEOGRAPHIC AND ECONOMIC DIVERSIFICATION

2019

Revenue by product group

38%	Cement
11%	Lime
41%	Concrete and Aggregates
10%	Concrete Products

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VERTICAL INTEGRATION

Recent investments in vertical integration:

• Pinkenba concrete plant construction was substantially completed in 2019. Operational in Q1 2020, now servicing the Brisbane city market
• Scotchy Pocket quarry commenced operation in July 2019. Located to the north of Gympie in Queensland, the quarry services the Sunshine Coast market
• Land at Badgerys Creek, NSW was purchased in Q1 2020. Following rezoning, the site will support delivery of concrete and materials to the development of the Western Sydney aerotropolis.

PINKENBA, QLD

SCOTCHY POCKET, QLD

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MINING

Mining and mineral processing are major drivers of demand for both cement and lime

• Mining demand generates significant earnings for the Group
• ABL customer base characterised by globally low-cost, efficient operations - particularly alumina and gold sectors
• Our raw material supply, operations and logistics networks are well located and connected to deliver reliable, high quality and low-cost materials to the mining sector in WA, SA and NT

MUNSTER, WA

MUNSTER, WA

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FOCUS ON INFRASTRUCTURE

Government fast-tracking infrastructure

• Proven capability in the delivery of bulk construction materials into major infrastructure projects.
• • Northern Connector project in South Australia - over 1,275,000 tonnes of aggregates, sand and slag
  • RAAF Base Tindal in the Northern Territory - 270,000 tonnes of aggregates and 60,000 cubic metres of concrete
• Vertically integrated and geographically diverse footprint position the business well to participate in fast-tracked government infrastructure spend stimulus

NORTHERN CONNECTOR, SA

BANKWEST STADIUM, PARRAMATTA, NSW

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LONG-TERM SUSTAINABILITY

'000 tonnes

FROG POND, MORGAN CEMENT, PORT KEMBLA, NSW

Total carbon emissions

2800

2700

2600

2500

2400

2300

2200

2100

2000

2014 2015 2016 2017 2018 2019

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2020 TRADING PERFORMANCE

› January and February affected by rain, bushfire, smoke and heat events, resulting in a slower start to the year

› March and April trading largely in line with expectations

› Strong demand from mining sector for both cement and lime across Western Australia, South Australia and the Northern Territory

› All levels of government are working on post- COVID stimulus plans, with a focus on infrastructure. Our product and geographic spread mean we are well-positioned to participate

› Cost pressures remain, with anticipated increase

to costs of $20 million offset by cost-out program savings in 2020 of $30 million which remain 'on target'

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Disclaimer

This presentation has been prepared by Adelaide Brighton Limited ACN 007 596 018 for information purposes only.

The presentation may contain forward looking statements or statements of opinion. No representation or warranty is made regarding the accuracy, completeness or reliability of the forward looking statements or opinion, or the assumptions on which either is based. All such information is, by its nature, subject to significant uncertainties outside of the control of the Company. To the maximum extent permitted by law, the Company and its officers do not accept any liability for any loss arising from the use of the information contained in this presentation. The information included in this presentation is not investment or financial product advice. Before making any investment decision, you should seek appropriate financial advice, which may take into account your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.