Brickworks : Review of Results HY Jan 2017

23 March 2017

Australian Securities Exchange Attention: Companies Department

BY ELECTRONIC LODGEMENT

Dear Sir / Madam

Please find attached the Brickworks Limited Review of Results for the half year ended 31 January 2017, for immediate release to the market.

Yours faithfully BRICKWORKS LIMITED

Susan Leppinus

Company Secretary

REVIEW OF RESULTS 1ST HALF ENDED JANUARY 2017 Released: 23rd March 2017

BRICKWORKS LIMITED - REVIEW OF RESULTS

1st HALF ENDED JANUARY 2017

RECORD UNDERLYING NPAT BUILDING PRODUCTS, PROPERTY & INVESTMENTS UP

$ MILLIONS	Jan 17 6 mths	Jan 16 Variance 6 mths %
REVENUE Building Products Land and Development Other Total EBIT Building Products Land and Development Associates & Investments Other & H.O. Total EBIT (before significant items) Total EBITDA (before significant items) Borrowing costs Underlying tax expense Underlying NPAT	370.2 58.6 0.1 428.9 33.3 67.2 47.6 (5.8) 142.2 156.1 (5.8) (25.3) 111.2	358.0 1.7 0.3 360.0 32.6 45.4 26.8 (6.1) 98.8 112.4 (6.8) (16.9) 75.0	3.4 >500 (66.7) 19.1 2.1 48.0 77.6 4.9 43.9 38.9 14.7 (49.7) 48.3
Significant items (net of tax)	(7.2)	1.9	(478.9)
Statutory NPAT	104.1	76.9	35.4
PER SHARE ANALYSIS	74.7	50.5	47.9
Underlying earnings per share (cents)
Statutory earnings per share (cents)	69.8	51.8	34.7
Interim ordinary dividend (cents)	17.0	16.0	6.3
Share price (31 Jan 17) vs Jul 16	12.67	15.03	(15.7)
Net tangible assets (NTA) vs Jul 16	11.37	10.96	3.7
Share price / NTA (times)	1.11	1.37	(18.7)

Annual TSR (to 31 Jan 17)	1 Year	3 Years	5 Years	10 Years	15 Years
Brickworks Limited	(13.6%)	(0.5%)	6.8%	3.3%	8.1%
All Ords Accum Index	17.1%	7.5%	10.3%	4.2%	7.9%
Outperformance	(30.7%)	(8.0%)	(3.5%)	(0.9%)	0.2%

Between 1st Feb and 21st March, the BKW share price has increased 10% (+4% for the Index)

RECORD UNDERLYING NPAT BUILDING PRODUCTS, PROPERTY & INVESTMENTS UP

Highlights

• Statutory NPAT including significant items, up 35.4% to $104.1 million

• Underlying NPAT before significant items up 48.3% to $111.2 million

  • Building Products segment EBIT up 2.1% to $33.3 million

  • Land and Development segment EBIT up 48.0% to $67.2 million

  • Investments segment EBIT up 77.6% to $47.6 million

• Net debt/capital employed of 13.9%, net debt $306.2 million

• Interim dividend of 17.0 cents fully franked, up 6.3%

Overview

Brickworks Group (ASX: BKW) posted a statutory Net Profit After Tax ('NPAT') for the half year ended 31 January 2017 of $104.1 million, up 35.4% on the previous corresponding period. Record underlying NPAT of $111.2 million was up 48.3% from $75.0 million for the half year ended 31 January 2016.

On record sales revenue of $370.2 million, Building Products' segment Earnings Before Interest and Tax ('EBIT') was $33.3 million, up 2.1% on the previous corresponding period. Improved margins and sales volume delivered increased earnings on the east coast. This was partially offset by lower earnings in Western Australia as a result of the difficult market conditions in that state.

Land and Development segment EBIT was $67.2 million for the first half, due primarily to the profit generated by the sale of Oakdale West into the Joint Venture Industrial Property Trust1 ('Property Trust') in December. In addition, Brickworks' share of the net asset value within the Property Trust increased by $133 million during the period.

Investments segment EBIT, including the contribution from Washington H Soul Pattinson ('WHSP'), was up 77.6% to $47.6 million. This was due primarily to improved earnings from New Hope Coal and TPG Telecom.

Statutory Earnings Per Share ('EPS') was 69.8 cents, up 34.7% on the previous corresponding period. Underlying EPS was 74.7 cents, up 47.9% from 50.5 cents in the prior period.

1 The Joint Venture Industrial Property Trust is a 50/50% partnership between Brickworks and Goodman Industrial Trust