Great. Well, good morning. Good morning, everybody, thank you for joining us. When we start the presentation, it is being webcast. The folks who are on the webcast may not be able to ask the questions, but we are taking the questions, we'll go back and answer them later on. You do have famous Marriott sandwiches on your desk. We were told they were amazing, I'm gonna let you judge those. Yeah. I'll start in a minute. Before we start, couple of rules, a couple of things. We will try to finish this session by 9:30, 9:45. We'll have Q&A between 9:30 and 10, if necessary. The aim would be we'll board the bus and you will be able to see some of the exciting sites which Boral have in Southern Highlands. The only concern we have, I know I never talk about weather, but today I will talk about weather. There is something in the weather which I, we can't control, and if it, if the weather does change, we will still go to the sites. Some of the site plans might change. We are planning to take you into the pit and Peppertree site. If it rains, then we wouldn't risk you guys all in the bus in it, because that'll be a bad news, yeah. Let's start this session. I'll take it, excuse me, as disclaimer as read. We'll cover... The presentation was released last night. I'll just talk about a couple of boilerplate slides on the business. Belinda and I will cover our PMAF, which is People, Environmental, Market, Assets, and Financial performance, and progress so far. Rajiv is gonna cover Cement. Lloyd is gonna cover Quarries. The good-looking people in the room with blue shirts are your Boral representatives. If you have any other questions, they'll be happy to take on board. You would have seen this slide before, we're just covering that. We try to make a habit of making sure that there are a couple of boilerplate slides, which are consistently in front of the market and the investors. Just to give you the size and the scale of it, because quite often we forget the complexity of running Boral from that perspective and what we are dealing in as an organization. We're talking about a scale of 360 operating sites, close to 7,500 employees, 14,000 customers, 10,000+ suppliers, and every site has an impact on the communities we work in, and that becomes quite critical for us. We do about 40+ million tons of goods gets moved every year, and it's a really interesting point because for an organization like Boral, logistics cost and logistics efficiency is a key driver for Boral to ever get to double digit. We'll talk a little bit more about that. When you move 40+ tons of goods every year, it is really critical that Boral cannot be suboptimal in logistics capability. We do about 4,000 kilometers of road paving every year. We have a very good and successful asphalt business and about 3,500 heavy road vehicles. It is a rich legacy of, founded in 1946, integrated network, which we'll talk about. We do talk about strengthening and growing the core. As you all know, Boral has had a rich history over the last 20, 30 years. Basically, we're going back to what Boral used to be for a long time, which is a core of the Australian construction material business. Revenue base, we'll talk, and asset base, we talked about. The other issue I want to keep talking about Boral, it is that it's a vertically integrated business. There's a lot in that statement. What that fundamentally means, that the upstream assets, like your quarries, your cement plants, they are no different to your standard infrastructure assets. They are 50-plus year life assets. They need to be priced accordingly, they need to be positioned accordingly, and the risk of running a vertically integrated business sometime is that you tend to forget that every asset in its own piece has to be profitable and has to deliver the returns. While up- integrated network is a good thing, it can create a very good strategic mode, but if not managed properly, it can also erode a lot of value. One of the things we are doing in Boral is spending a lot of time understanding and positioning each of the assets independently, profitably, and to its core advantage. We have 50% of upstream volume goes to to our own downstream channels, but other 50% goes outside in the market, which also tells you the importance of these assets. Not pricing them right, not positioning them right, can actually fundamentally impact the value of these assets and general pricing and in the marketplace. Vertical integration delivers a lot of benefit, as you know, right? You kind of have a sense of service the market. You can go to a customer and service multiple products, of course. More and more sites are asking for complete solution. They will have an aggregate and a concrete, in some cases, cement as well. We now know we are doing a job at Western Sydney, where we are not doing concrete. Rajiv is supplying the cement to them, to a customer who is doing their own concreting. You get a chance at a multiple go at the same project. Which is really critical for us, right? There is another business in the middle called recycling. 2.2 million tons of C&D recovery happens in that business. 2.2 million ton. I mean, that is one of the business which will grow. Every ton which we recycle is a ton which we are not taking out of quarry. Every ton which we are not taking out of quarry. is the expansion of the life of a quarry. It has a strategic reasons. One, customer are asking for a circular economy, and we can give the solution. The second thing is, having that, you're actually extending the life of your core infrastructure assets. Quite a critical business, and we do expect to grow that quite a bit. We have a concrete placing business called DMG. Boral acquired a business called PCG about one year ago in Brisbane. We have now integrated that all together into a business called DMG. We have a concrete placing business now in both New South Wales and Brisbane. Couple of industry value drivers and the Boral's potential in all of that. We talk about integrated network. There is still work to be done. There is no doubt about that. There are white spaces. There's an improvement to happen in some of the assets life, and there are white spaces we know where we have missed an opportunity to have a long-term infrastructure asset. We would be going after them as and when the opportunity arrives. Upstream assets, we talked about that. You'll see a slide. We talk about how scarce they have become, how the critical value of them comes from the barrier to entry of those. You'll see that come through. Lloyd is gonna talk to that. Downstream assets, you have heard us say many times around what I call downstream assets has to stand on their own down feet. The whole reason why downstream asset exists is because of the proximity to the customer. If that is a competitive advantage of that asset, then we should have downstream assets. If you're gonna have a downstream assets, then it is important that they are profitable. When you compare Boral with the global players, you will see there are players in the United States who are focused purely on upstream assets, right? They're focused on quarries, they're focused on cement, and they have outsourced or almost franchised their downstream assets, which is a fascinating model. That can work in a market which is 10 times the size of the Australia. It doesn't necessarily work in Australia. For us to succeed, we've got to own those assets, but they have to work for us. They have to be holding the right amount of market share and right amount of profitability. Customer service. This is a piece which I personally feel very passionate about, and I also feel we are not doing a good job, and hence you can see the opportunity which lies there. I think in this market, where the pricing has been for a long, long time, I think there's an element attached to the fact that the customer service has not been good. I do think market never pays you premium if your customer service is not good, and our customer service, frankly, has a lot of work to be done. It is not our people's fault. It is the way the process has been set up. We are doing fairly good amount of effort to get that into that realm, to get to a standard level at least first, and then be the, well, you know, first one. I know it's one of those things which every leader talks about, everybody has a mention about. I can assure you, this is genuinely a huge opportunity for Boral. There's a lot of effort going on into simple things like how quickly it takes for us to pick up the phone. How quickly does it take for us to deliver to the customer? Are we collecting cash properly, and are we those moments of truth between us and customers, is that happening right? I think there's a lot of gaps in our business right now. In our business, where a builder is standing at a site, the fact that the formwork is laid out, and he or she and the team is waiting there for trucks to arrive within 15, 20, 30 minute window, is a difference between a successful concrete supplier to a poor concrete supplier. That window is critical for us. In that window, we either retain the customer or we lose the customer. I think that's what a big focus is going on. Operational capability. You just saw we are a 300 site organization. These are heavy industrial assets. This is an operating unit, needs to be run like an operational team. It needs to be managed like op assets, and without the core capability in Boral or any other business like this, having asset management, asset optimization, it is not a business where you can sit and run from the office. This is an absolute, an operating unit, and having an operational capability level at CEO minus two, CEO minus one, minus two, minus three, at a management level is absolutely critical. Obviously, we have operators outside. Logistics, I talk about 42 million tons of goods get moved in Boral every year, and frankly, you can't be doing that. You can't be running Boral and not being good at logistics. We can. We have a significant amount of cost. In our top five costs, cartage cost is right up there. Managing that becomes critical, and there's a lot of work going on there, too. ESG credentials. Rajiv is gonna talk a little bit more about that. The cement is a high pollutant industry. There's no going away from that. Managing that over a period of time really is a critical piece. There are a couple of things we are working through, and you'll see that come through in our language as we move forward. Quite often I get asked, "Is the leadership team is in place?" Well, leadership team is in place. You can see the folks, and they're most of them. Lloyd is here on the left-hand side. Matt is in Melbourne. Rajiv is here, who runs Cement. Tim is who runs Asphalt. He's overseas right now. Ash is here as AGM Commercial. Belinda is here as CFO. Mark is in Melbourne. Sam is our AGM, P&C. Peter Lim is our acting GC. We have just hired Paul Noakes, who has a long-term construction and building industry experience in Queensland as AGM North. That completes our list. If you notice, there's a team mix of both long-term Boral employees, and new employees who have come from outside the industry, but the basic criteria has always been: Do they understand how to run operations? Do they understand how to run heavy industrial environment? Do they actually understand the vertical network piece? That is the experience we've been looking for. I'm pleased to say the team is actually now complete. The section where we call value creators, value adders, and value enablers, that is part of our internal operating model, the way we have organized ourselves. People who go and run and create value, directly dealing with the customers. There are people who support and the people who are in other functions. That's your Boral team. We talk about PMAF pillars quite a bit. This is not, and I can't emphasize this enough, we don't do this for presentation. This is how we run Boral. This is what we call Boral way. If you talk to any employee in Boral, this is how we are running our business. We understand that managing people, environment, market, and assets will give us the financial results we want. And under each of these categories, there is a work going on, which you have seen at the half year results as time as well. The way we think about people is not only safety, but the engagement, the leadership, the culture, the operating model clarity. One of the things which we got the feedback, the first quarter of this financial year, before I started, organization and board did an employee culture survey, and obviously, there was a lot of areas for improvement there, which we are working through now. One of the key element was that we don't know where the direction of the business is. We don't know the strategy, we don't know where we are headed, and we call that the tangible artifacts. One of the things we are trying to do is to put all tangible artifacts in place. The employee of Boral today, or hopefully tomorrow and next month, does not go home wondering where the Boral direction is going. That's the core part of people. That's an absolutely core part of people. Environmental, we talk about the decarbonization, the circular economy thing we talk about, part of the energy efficiency. Markets we talked about. Customer service, we have about 200+ salespeople. Their sales effectiveness, their proper go-to market. You've heard me say many times, concrete growth has grown by an average of 2.2%-2.3% every year over the last 50 years, and quite often, we have been, in past, quite focused about individual segments and trying to thread the needle. Our job is to get minimum certain amount of organic growth every year above the market rate, and doesn't matter what segment we play in, we just have to be nimble enough to get there. That's the job of our salespeople, that's the job of the go-to-market. That's what we're trying to do. Rather than threading the needle in every territory, every single time, the idea is to grow the market. If we can grow, keep the price market, we can mark pricing, right price for what we offer and cost, I think we are in good shape. Call to cash cycle and customer service, I talk about. Assets, we already talked about. Fixed assets, mobile assets, OEE, optimization, maintenance, and care. That's ongoing. Obviously, in financial terms, we talk about VPCC, volume, price, cost, and cash. And that'll come through in Belinda's conversation in a minute. Margin expansion, we have committed that Boral, we are aiming for Boral to be double-digit business. Quite often, I get asked question: What's the time frame? I can't tell you the time frame, but I can assure you there's a strategic plan which board has approved, and that leads us to a double-digit target, and that's exactly what we are aiming, and I'm not walking away from that. I absolutely believe Boral should be, must be, will be a double-digit business. Discipline capital allocation, we have constantly said, or I've constantly said since we've started, and is that the capital spend should match the DA. And there's a lot of discipline going on into capital allocation, and where the capital should be allocated and how the capital is spent. Not just signing the capital, actually making sure that the capital spend is accurate and gets done properly. I'm gonna take you through, very quickly and briefly, through each core. People, I'll just touch with safety. At the end of May, our safety improvement is 40% improvement where we started this year. I just wanted to appreciate the fact, 40% improvement in safety in the business in nine, 10 months, right? That is amazing work done by Boral employees to get such amount of improvement. We are sitting at around 6.5 TIFR. Our aim is to get it below five, I'm pretty confident we won't get it this year, absolutely, we are aiming for next year. Pretty confident and really good job by the people. We talked about operating model. The operating model is in place. Most of the cost out around that has happened, yet there is still more to go. Again, we have not put a number out there, we have not put the number of headcounts out there, but majority of that work is done. I still think there's a fair amount of work to be done in the field just to get that right. As we work into assets, maintenance, RMM, mobile assets work, that would be a couple other things which we need to work through. We talked about organization culture, I talked about tangible artifacts. The next piece after putting tangible artifacts is really getting into the, what I call the culture work, which we will end up doing. The bar just represent our progress out of 100. There's no science to it. It's just a sense of how far we are and how far we have to go. Environment, the decarbonization initiative is critical. two years ago, I think two years ago, Boral put out a sustainability targets for FY25 and FY30. We are reevaluating those, and when we come to the full year time, we will either confirm those targets, or we might just give a change to those based on... The endpoint doesn't change. Endpoint doesn't change. There are some things which are out of our control, like DA approval, et cetera, but we'll work that through. One of my promise to the board and to the employees is we will make sure we properly audit those targets, and then come back to you by October. The journey does not stop. We are absolutely committed to that. We talk about recycling. Quite excited about where we're gonna take recycling. We are in a mode now to build some assets around transfer stations. Let's talk about environment. This is a critical issue for us to understand as part of things. If you look at left-hand side, that's your Scope one and two emissions by category, right? You will see electricity generates about 18% of Scope one and two, thermal fuels is 26%, diesel is 13%, and 43% in calcination, which is the cement manufacturing, performs 43%. You see by category, 78%, it actually should be cement and lime, not just New South Wales. 78% actually comes out of cement and lime. We manage that. We managing our decarbonization agenda, right? You can see the Scope three again, clinker, cement, bitumen purchase is the largest one, and then the diesel is the 14%. We are right now heavily focused on Scope one and Scope two to get that under control and to get that to managed. There are a couple of things here, is to get that cement piece, there's efficiency improvements happening. There's a cement intensity reduction, which you would have heard of low-carbon cement and low-carbon concrete. I want to talk to you about that, and then the alternate fuels. The bottom left-hand side, bottom right-hand side is a typical cement manufacturing process. You have calcium carbonate, limestone, you provide thermal energy to it gets into a cementitious form, and then there's a future focus of carbon dioxide after. We are not talking about carbon capture. We are not talking about future focus right now because I do think there's a lot of technology to come through that. Boral jumping the gun and trying to invest a lot of money in carbon capture too early may not be the best use of the money. What we are focusing is the thermal fuels, which is the alternate fuels, which we'll talk about when we do the cement production. I want to talk about the middle portion, which is the cement intensity. That is true that we are trying to replace cement, which is a high-carbon material, by other material like slag, fly ash, to reduce the carbon emissions of concrete. It is important to understand, though, that while that goes down, we are not going to stop or reduce our cement production. We expect to get market share. We expect to grow the marketplace. It is important to understand, while low-carbon concrete helps the customer story, it helps them from their green building certification and their sustainability targets. From Boral perspective, from an environmental agenda perspective, it actually doesn't help us that much simply because we are not going to reduce the amount of cement being produced. The cement production will hopefully go up as we go more manufacturing. Our journey, our managing of environment actually comes from efficiencies and come from alternate fuels, and then later on, doing the carbon capture. It's a really important point. Having said that, the success on low-carbon concrete has been absolutely amazing. We are actually quite amazed and very happy with the performance. We are talking about 30%, 40% take up on a low-carbon concrete by the customer. There is an absolute demand for it in the marketplace, and we, of course, are quite committed to keeping that going. Yeah. Talk about markets. We talk about standardizing customer service quite a bit before. There's a fair amount of work going on. The bar actually represents where we are. Work has started, but obviously a lot of work to be done there. Commercial rigor. I mention this quite often within the businesses. Organizations like Boral, a heavy industrial business with heavy assets behind them, needs to have a very strong commercial acumen. Commercial acumen means, with what I call in my world, street smart on pricing, on volume, on the positioning, and all that stuff. It doesn't mean heavy sophistication. It actually means being commercially astute and being street smart. There's a fair amount of work needs to happen, and we are going through that. We are now monitoring sales effectiveness, sales performance. We are standardizing, simplifying process, the basic ground one-on-one of sales management we are trying to build. I know it doesn't sound exciting, but I can assure you it is a really critical foundation piece for Boral to get where it needs to get there. Brand equity, I mean, we have gone back to, you have seen the old square, which we are very proud of course. Assets. We talked about integration, degree of vertical integration and asset footprint advantage. We are working on life of quarries. We are working on decarbonization of cement. We are looking at our downstream assets as a dynamic asset. It is not a static asset. What fundamentally that means is, in a cluster, you have a quarry, you have a concrete batching plant. The whole reason concrete batching plant exists there is, one, because it can service the market within a certain kilometer range. If that market around it has moved, it is important for that batching plant to look at its existence in its own fundamental principle, because what we don't want to be doing is having multiple downstream assets unprofitable, and that's a job. To me, downstream assets are dynamic, and the upstream assets are the infrastructure like. We talk about asset performance, asset efficiencies, and you will see some of that in different presentations we'll do. There's a fair amount of work to be done. We're putting KPIs and accountability through that. Mobile assets, we talked about. We are deploying Auto Allocations. You would have heard me speak about that. It is about basically making sure, improving the cost of delivery, but more importantly, improving the customer service. We want to see a world where a builder can watch their truck coming like an Uber, how far their truck. That's what we want to get to, and I think it's doable. The technology actually exists today. We can link it with a system where builder gets a certainty of when the truck is arriving. That, I can assure you, is worth a lot of value to Boral. That time saving for a builder waiting aside. That work is in progress. We have done that in Queensland, Victoria, South Australia, and WA. We can see improvement in truck turns. We can see improvement driver. Obviously, when you have a change, there's a bit of change management going on for the both customers and employees, we will bed that in properly before we actually move on to New South Wales, and that's in Metro at this point. We are only going Metro. Auto Allocations technology is available to cement and asphalt as well, of course. I'm going to hand over to Belinda now on financial, Belinda, I'll come back next one. This page just highlights a couple of areas that we're really focused on at the moment. Firstly, on cash, we feel like we can do better on our cash conversion cycle, so we're really focused on all of our working capital elements. Focused on receiving cash on time, our payables, as well as our inventory levels. We're being really tight on our capital allocation, and Vik talked about that on his slides. Then we're putting a lot of effort in, into being close with the customer. If we have cash-related disputes, we're trying to solve those in a really timely manner and getting close to the customer. Then from July, our sales team, in their sales incentive program, will be incentivized on cash as well. In terms of commodities, really, our focus here is a reduction in usage as well as substituting for alternate fuels, and Rajiv's going to talk about that in a few slides. From a P&L perspective, we're really focused on reducing or taking out the volatility in the P&L. We'll do this on a quarter-by-quarter basis, but essentially, we'll look at actively hedging to really manage that volatility. I'll hand back to Vik. Just moving to the last slide before I hand over to Rajiv. On volume, price, and cost. We talked about volume, price, cost, and cash. Belinda just talked about cash. On volume is up year on year. So it's even in the second half, volume is up on FY22. The statement that we found May slowed to get up on April, it is still up on FY22. First quarter of this calendar year or quarter three was very strong for Boral. April then obviously slowed down because of Anzac Day and other holidays. We're expecting May to come back stronger after April, back to what it was in March and February. It did not, but it's still ahead of last year. We are definitely seeing a change in segmentation and definitely seeing drop in residential. That is in, that is. We can see that coming through nationally as well. Our mix is slightly changing, right? Having said that, we remain significantly ahead of last year on FY22, similar to the range of what we said at the half year time. Recycling, quarries, and asphalt, holding up well on back of the project. That's going. Still in May, they were strong. Concrete obviously affected by the residential market. On pricing, we are getting price traction nationally across all products in all regions. In some regions, we are seeing margin expansion. In other regions, it's purely covering the inflation still. Overall, we don't find any part of the country where we're actually not getting price escalation across the board in cement, concrete, asphalt, recycling, so we're getting it across the board, and quarries. That's a, the good thing. Having said that, I do want to make a point that the inflation pressure is not going away. It is really important for us to appreciate that, quite often people start and stop the inflation discussion with energy. We are still facing the labor rates. The new EB agreements are all being signed at a full rate. There's a superannuation guarantee coming through. And there's a volatility in our commodity, as you can appreciate. From our perspective, the pressure on pricing for next 12 months is not going away. If we can improve the customer service, there's an opportunity there for us and the industry, of course. Cost, I talk about operating model. I think there's a fair amount of cost to be managed over the next couple of years. Once the basic operating model, the what I call the blunt instrument cost, work has been done, then there is a significant amount of cost improvement can happen through reducing your operating costs per additional ton. What we are thinking through and what we are working through is, as you get more additional ton, if you don't improve cost, you get an operating leverage. That is what we're trying to do as we improve the efficiency. Our productivity improvement, hoping, would take care of the volume gain over the next couple of years. That is the plan in town, which gives us the operating leverage over the volume. Outlook statement. We talked about, we have seen price stretching across all regions and all product lines. Our EBIT run rate in second half FY23 is ahead of FY23 and is expected to remain so for full year. If you remember, at the half year time, we said our second year, second half EBIT will be broadly in line with first half. Our first half was AUD 95.3. You double that at AUD 191. We are saying it's significantly ahead of that half and expected to remain so for full year. That's the outlook statement. I'm going to hand over to Rajiv, and then I'll circle back at the end for closing. Thank you, Vik. Good morning, all. Welcome to this Investor Day presentations today. A quick intro from myself, Rajeev Ramankutty, AGM for Cement and Lime. I joined Boral in 2019, but I've been in this sector for over 25 years now, having been with Lafarge in U.K. and Asia prior to coming back to Australia in 2014. Over the next 20 minutes or so, I'm going to take you through a few slides, which will introduce you to the cement business, to our assets, and you're going to visit a couple of them later this afternoon. Before I move from this slide, this particular picture is of our Marulan mine. The Marulan mine, what you're looking at there is, from that asset, 250 million tons of material has been extracted over the last 150 years. Impressive though those numbers might be, what is more remarkable is there is three times as much resources there, and at current extraction rate, it'll take about 180 years to exhaust that. That is the scale of the asset that you will see this afternoon. When I started in this industry 25 odd years ago, a very wise person said to me, "Good cement is made in the mine." 25 years later, that still remains true. That is where it starts. This is a picture which shows the map of where all the cement assets are in Australia. It's a very East Coast-centric demand profile. If you look at that, 10 million tons of annual demand, 70% of that is in the East Coast. Boral's East Coast position is very robust, very resilient. We participate in where the 75% of the demand is. New South Wales is really the home for us, in the sense that we got fully integrated operations there, with rail connectivity providing us reach and cost advantage. The newest member of the family, Geelong in Victoria, is a springboard for future growth. You can see that they're organized as where the kilns are, where the mills are, and the terminals are. Very strong position in New South Wales for us and very good position in Victoria and Southeast Queensland. Looking a bit deeper into the cement portfolio, that gives you a breakdown of where our assets are. The first statement I would make here is they are all intergenerational assets. You got Marulan, which started life in the 1800s; Berrima, 1920s; Maldon, 1940; and then you come to Geelong, which is the newest member, just one year old. These are intergenerational assets. In New South Wales, we got a fully vertically integrated position, including concrete placing, which is quite unique. From the quarry to the placing of concrete, we've got a fully integrated chain. Our position in the cementitious space is very robust. We've got very strong position in slag and in fly ash. We got the joint venture here in New South Wales, Flyash Australia. We got access to slag, long-term arrangements here in New South Wales and in Victoria. The growth platform that Geelong is in Victoria is also a springboard for moving into Tasmania and South Australia, where we don't have a cement position. In SEQ, we all know in 10 years' time, there is the Olympics, and the quality of assets there gives us a fantastic position to actually profit from that. What is often forgotten is also in New South Wales, we've got a very strong position in the packaged product market. We are the leader in that space. Through Maldon, the flexibility of their assets enables us to maintain that position into the future. As you can see at the bottom there, we are a one-stop shop for our customers. A lot of the area that is not covered is also the lime business. We got a lime kiln at Marulan, which supplies lime, hydrated and quicklime, and a lot of the utilities, a lot of the water you drink, along the East Coast is treated with lime from Marulan. Moving on to slide 20. When you look at the competitive position of our cement business, we benchmark them globally, right? with our global peers. I've selected a few KPIs that we monitor. Berrima is a long-term competitive asset, which compares very well with our global peers. You look at any of those KPIs, they are either in the third or fourth quartile. The work that we do starts in the mine, so the cost of extraction of lime, which has got an impact on the cost of the cement we make, so a lot of effort is put in how efficiently you extract the limestone from Marulan, and then convert that limestone into clinker and then into cement. Each of those unit steps, we put a lot of focus on in running them most efficiently, be it in optimization of the mine, energy efficiency, alternative fuel usage, which Vik touched upon a few times. Very ironically, the new Safeguard Mechanism and what we anticipate as a carbon border adjustment mechanism will actually make Berrima even more profitable into the future, even more sustainable into the future. I'll cover both the Safeguard Mechanism and the alternative fuel journey in some more detail. Starting with the carbon story that we've covered in his slides. Safeguard Mechanism has been here for a while, but the new Labor government has now put some more guardrails around it in that the 215 facilities which are classified as high emitting, i.e., they're going to generate over 100,000 tons of CO2 per annum, they are going to be mandated to reduce the decline rate as 4.9% year-on-year. That is the target that these facilities have to meet. That represents about 28% of national emissions. The statement we want to make is we can actually meet those requirements with some of the investments that we are already doing and what is in the pipeline. We have been working very closely with government in the formation of the Safeguard Mechanism, but also really impressing on them the need for having a CBAM in conjunction with it. A A Safeguard Mechanism in and of itself will kill off local industry, there is no doubt about that. The government has really been extremely receptive in having that very nuanced approach to say cement and steel are, A, hard-to-abate industries, B, they are trade exposed. Given that, they've given a commitment to actually look at introducing a CBAM as early as 2025. When you look at the graph on the right side, the top upper right side graph, you can see if you change nothing, by 2026, we'll be in deficit. If you change nothing, you see the dotted line there? That is our very emissions as it is today. By 2026, this is the decline rate, and we will be in deficit. Because of a very strong alternative fuels program, we're going to be below that decline rate all the way through until FY29. Across that time, we are actually going to generate surplus credit. There are two caveats to that. We need the investments to come through, and we need the planning approvals to support them. Right? As long as you have that, we'll be comfortably under that line. The additional point there is, there is a whole, global conversation happening about recarbonization. The concrete that is out in the, out in the built area, that continuously absorbs CO2. Currently, that is not accounted for. There is a global project to do an inventory, starting with the Western world in Europe and America, and Australia is going to start that towards the end of this year. Once that is also factored in, we can see the dotted line at the bottom will be comfortably underneath that. That is actually what is going to make Berrima a very sustainable, very competitive asset. In New South Wales, it is the only integrated position that only Boral has got that position, so it will be extremely competitive in this market. Moving on to slide 22. This is just the picture of the progress we are making in the alternative fuels space. About five years ago, we were using 100% coal at Berrima. We started on a journey, taking baby steps in substituting some of that coal with alternative fuels. Obviously, the waste market collection and, you know, getting it to the point of use was not mature, so we had to work in the supply chain to... And, then to invest in technology in the asset to enable us to substitute that coal with waste. Today, we are sitting at, even though the design was only 18%, we are sitting at 20% replacement. That means about 30,000 tons of coal that would have been burned has been taken out. We're currently using wood waste and refuse-derived fuel. In shortly, in about two months' time, we'll be starting to use chipped tires and more wood waste, more RDF. Our target is to get to that 60% mark and beyond. We got a couple of hurdles along the way with the planning approval process is a little bit cumbersome for us. We started a DEAR application back in November 2021. We're still waiting for the final approval. That is what will determine how quickly we can get there, but we are on the right track to hit those milestones. Just moving on to specific assets, before I hand over to Lloyd. Marulan, as I said, that first picture I showed, that is an asset, which has only reached its midlife, even though it is over 150 years old. Assets like this are impossible to recreate today, given no one wants a quarry in their backyard, the planning systems are not your friend. To have an asset like that sitting there is a fantastic advantage for Boral. This gift, we have to thank our predecessors for their foresights in actually putting it there. This will continue to deliver limestone and other products even after the youngest person in this room is no more around. That is how much life this has got. It not only produces the limestone for our Berrima operations, we supply quite a bit of limestone to steelmaking, and that is a very interesting circular economy story. We take a virgin material like limestone, we send that to BlueScope, in this case, to make steel. When they make the steel, slag is the byproduct. That slag then comes back to Berrima to be used as a raw material, and it goes to Maldon to support the low-carbon strategy, low-carbon concrete strategy that we talked about. The other important thing about these assets, they're rail connected. Marulan, Berrima, Maldon, they're all rail connected. That makes it very possible for us to move large volumes of material over long distances very efficiently. Fantastic connectivity there as well. As I said, we also have the lime kiln, which is next door to the Marulan mine, where we make about 100,000 tons of quick lime and hydrated lime to support stabilization, utilities, et cetera. Moving on to slide 24. Maldon usually is the less glamorous of all the other assets in all the Boral communication, but it's a very vital part of our chain. Started in the 1940s. We had a kiln there, which we shut down in 2013 because it was subscale. Now it has transformed itself into the hub where we make our packaged products, including dry mix. We also make a lot of bespoke materials that they have the ability to respond to spot demand requests because they have very nimble and agile in the way they can actually make some of these products. Rail connected again, so we have the ability to move things longer distance across state boundaries. We make specialty sands there, so it's a really interesting operation. Not on the same scale as Berrim, obviously, but still a very vital part of our network. Last but not least is the newest addition to our family. We commissioned this last year, an AUD 165 million investment, which is going to be a fantastic springboard to improve our position in Victoria, but also reach into South Australia and Tasmania. It's on the port side, so you can directly move the clinker from ships into store. Very similar to what Daniel and some of the others saw in Sunstate earlier this week. Very similar facility. It can actually bring in big volumes of clinker portside, move it into store, and then grind it into silos and then to customers. It has also got significant excess capacity. 1.7 million tons is the boiler plate capacity of the plant. It's got a lot of headroom, two ball mills, a lot of flexibility to make slag-based product as well. That is the last slide I had. Thank you very much for your attention. I'll now hand you over to Lloyd Wallace to talk about quarries. Over to you, Lloyd. Good morning. My name's Lloyd Wallace. I'm the Executive General Manager of Concrete and Quarries for Boral's New South Wales and ACT operations. Today I will put on the national quarries hat to talk you through a couple of the key aspects of that portfolio. To give you a bit of brief background, I am a mining engineer by trade. I worked with BHP and Anglo American in Australia, North and South America. I have an MBA from Harvard Business School. I joined Boral some 16 odd years ago to work on the development of the quarry that's up on the screen in front of you now, the Peppertree Quarry. Since that time, I've had P&L leadership roles in commercial construction, logistics, building products, contracting, quarries, and concrete operations across Australia. I'm going to take about 20 minutes now to talk about various aspects of the quarry portfolio, and I'll finish with a little bit more detail about the vertically integrated Sydney network, the upstream assets of which you're going to see today. To move to slide 27, this map shows that our quarry assets are concentrated with population, primarily down the East Coast and wrapping around into South Australia. We have a number of locations in regional areas that enable us to support key resources projects. One of the things to call out on this slide is the comment on the left-hand side there about the integrated recycling opportunities. Vic talked about how our customers are increasingly demanding recycling products to go into their projects for a range of reasons. In the context of this presentation, I'm gonna talk to you about the way in which recycling adds value to the quarry portfolio. To move to slide 28, this shows how that portfolio is broken do wn by the number of operations around the country. The words in the middle, you will see the average reserve life in each of our operations around the country. Let me get technical for just a moment. I promise you I won't do this too often. Resources are the products in the ground that are technically accessible and economically accessible. Reserves are a subset that are consented for extraction. This slide speaks to reserves, that which is consented. Through the course of this presentation, I hope I'm gonna make the point to you that resource is incredibly valuable as we go forward, and our resource lives are higher again relative to what's shown on this screen. Along the horizontal there, you have a series of charts that show, relatively speaking, the year-to-date sales from our quarry portfolio, broken into three broad groupings: coarse aggregates, fine aggregates, and road base. At the risk of dramatically oversimplifying our business, the most valuable thing that we do in construction materials is to break natural rock down and stick it back together again with bitumen or cement in our asphalt and concrete businesses respectively. When we break that natural rock down, it is inevitable that there's going to be a fraction that's not suitable to go back into that artificial rock, and that fraction that is not suitable to go back has traditionally been diverted into the road base market. Road base is literally what it sounds like. It's the structural elements of the road that sit beneath the pavement, whether that is a concrete or an asphalt pavement. One of the things that will jump out at you when you look at these relative columns, is the degree of difference in the disposition, particularly between New South Wales and Victoria in our sales profile. The question to ask there is, why is that? If the most valuable activity that we can do in construction materials is to make these artificial rocks, road base may look less glamorous. Let's be clear, we're talking about construction materials here. There's not a lot of glamour to be had. There is profit in every one of these segments, but the degree of profit is a function of the demand of the geography that we're selling into. If you're in a geography where urban sprawl continues to drive an expanding road network, like the north or the southwest of Melbourne, for example, road base is a very attractive business to be in. The dilemma arises when you move to a geography where the focus is moving towards increased density, which is the case in Sydney. Here, you require more and more of that synthetic rock, and less and less of the road base product. At this point, Boral's portfolio really gives us an opportunity to address both this and what is increasingly a global scarcity of natural sand. Rajiv has talked about the value of the limestone in operations, both for limestone production and for cement production. It also has value as a complement to our hard rock operations. When we go to the Southern Highlands this afternoon, you will see the way we use this different blend of geological characteristics to be able to produce an artificial replacement to natural coarse sand. By investing in our assets, given the geological portfolio we have, we end up addressing a customer need for an increased amount of concrete in the Sydney market, and we overcome a depleting resource variety. This theme, you'll see, recurs through. The blend of products that we have creates substantial value in and of itself, that's why you get that very different shape in sales profile between different geographies as we tailor our needs, or our capabilities, I'm sorry, to the needs of our customers. To move now to slide 29, I'll make three points about the way in which quarries create value, I'll do that using this table on the left-hand side of the slide that talks about nine of our most prized quarries around the country. The first point I wanna speak to is down the center of that table, illustrated with Harvey balls. What good presentation doesn't have Harvey balls in it? This talks about the position on the cost curve. We seek to place our quarries in the lower quarters of the cost curve in each geography that we serve, and that drives where we invest our capital. Of the nine that are on screen now, one of them was built brand new inside the last decade, being the Peppertree Quarry that you'll see this afternoon. Of the remaining eight, four of them have had substantial capital investment over the last decade to enable them to occupy that position on the cost curve. It's not only our capital investment that is informed by that notion, it is also our continuous improvement efforts. When you reach Peppertree, the team this afternoon will quite appropriately talk with pride about the way over the decade that they've operated that site. They've got much better at running the in-pit crusher. You take that continuous mindset improvement, and you apply it across the entire site, and you get a site this year that will make yet another record production, result. That constant creep and growth and expansion of our capabilities amortizes the investment over a greater output base, lowering our fixed costs and improving our cost competitiveness. The second point that I'd like to make off this slide is the proximity. By the time a ton of product, whether it is road base or, premium aggregates, is delivered to a customer, typically around half that cost is the transport cost to get it to that customer site. Being physically close to your customer is an important source of value when the asset is in operations. Remember proximity when we get to the end of this discussion, and we talk about what happens in terms of value at the end of the portfolio. There are two notable exceptions that jump out here, which are well and truly not within 10 kilometers of their customer base, and they would be the two quarries that serve the Sydney market. In fact, there is no quarry owned by anybody that serves Sydney that is within 60 kilometers of where we stand today. What is quite remarkable about Boral's portfolio, and as you said, we have our forebears to thank for this insight, is the two quarries that do serve the Sydney market for Boral are both on rail. While they may not be physically proximate to the market, they are economically proximate, and they are economically proximate in a way that others can't replicate readily. The last comment that I'll make on this slide is to talk about the ways these natural endowments, along with appropriate capital investment and operational discipline, can be secured and amplified through vertical integration. In this case, I'll use the example of our Ormeau Quarry to the south of Brisbane, where this one quarry serves six Boral-owned concrete and asphalt batch plants. That vertical integration from a quarry standpoint becomes a defensive moat that prevents any power buyer who may not be vertically integrated from holding up us for the value that inherently sits with the quarry. This degree of integration does vary across our markets, but it is always high. The highest case there is the Peppertree Quarry, where that manufactured sand product I spoke of goes across the entire Sydney network and, in fact, well into regional New South Wales as well. To move to slide 30, I'll talk about building these portfolios. If I can take at least some of you back 40-odd years ago, using the example of Southeast Queensland, the task required to convert a paddock into a quarry to compliance with one act and a planning scheme, the obligations were simple enough that one person could do it. The cost, if I can reference the Big Mac Index, a couple of cars, and you could do it within a year or two. Take three decades, step forward. one act has become 25. It takes a team of people, and now we're not talking about multiples of cars, we're talking about multiple houses for an uncertain outcome. Most importantly, it doesn't take a year or two, it takes a decade. The number of acts hasn't changed, but the cost has become significantly greater because of environmental offsets and archaeological requirements for compliance. There are three implications of this progression that has happened across the country for the Boral portfolio, as you said. The first is, it would be practically impossible to replicate the portfolio as it stands today, much less its degree of vertical integration, much less its degree of connectivity. The second point is, as I alluded to earlier in my slides, the ability to get a greenfields site into production is incredibly difficult. Brownfield sites, that is the extension of existing quarries, is relatively easier, not to say that it is trivial. That resource position Boral has, that is the material that is technically and economically accessible but hasn't been consented, becomes incredibly valuable. The third thing to observe here is that in order to do that, to move resource, to reserve, to production, to serve customers profitably, requires an organization that has the ability to manage increasingly difficult stakeholder demands. You're going to see that when we go to Peppertree later this afternoon, and the connectivity of that site, in a virtual sense, with the community that has built credibility and allowed us to expand. Slide 31. Quarries deliver value in their operations, clearly by taking the product out of the ground. Let me illustrate it, though, the other ways in which we add value by using our Salisbury Quarry to the north of Adelaide. We started operations in that site almost 50 years ago, very clearly, the thing we were after then was the product that was coming out of the ground. The nature of all of our quarries is they are surrounded by buffer land that protects our stakeholders from the operations and vice versa. That buffer land is valuable. In the case of the Salisbury operation, we put recycling facilities on it. If I took you to our Montrose operation in the east of Melbourne, you would see integrated concrete and asphalt plants sat on that buffer land. If you were to go to the west of Melbourne, to our Deer Park operation, you would see not only our operations, but our customer operations, be they masonry or in fact, most recently, the Melbourne Metro Precast facility was built on our land because of the product they were taking from it, and at the end of that project, that asset was transferred to Boral. Buffer land is valuable throughout its life. I'll also reference here the role of recycling. As Vic talked about, recycling is a way of extending and optimizing the life of our quarries. If I go back to that breaking of the rock down, there is a judgment to be made there about how much of the natural product does go to produce a greater quality, recycled, sorry, road product. We can use recycled material, be it glass, recovered asphalt and profilings, or construction and demolition waste, to bulk out that road base market and ensure that we're diverting as much of the natural material to its highest and best use that we can. At Salisbury, we put a recycling facility alongside our quarry, and that extends the life of that deposit. As the resource reaches the end of its life, though, as inevitably it will, what we're left with is a hole in the ground. As the ad used to say, "It's the bubbles of nothing that really make it something." Holes are actually getting more and more valuable over time, be that for the receipt of putrescible waste at Deer Park with our landfill, or to manage spoil, requirements of infrastructure projects. For example, at our Dunmore, operation, south of Sydney, we've been receiving material that's come out of the WestConnex, tunnels here in Sydney over some period of time. However, the void is filled, the final value, source of value in a quarry is the land that is left behind. If I bring you back to that comment about proximity, that very proximity that made that quarry valuable during its operational life also makes it valuable at the end of its life. The clearest example nearby, where we stand today, our Prospect Quarry out beyond Parramatta, the buffer land was converted to the Pemulwuy Residential Development, and the pit itself, as it was progressively filled to a point, became the Quarry West Employment Lands. Value comes from what comes out of the ground. Value comes from the land that sits around it. Value comes from the ability to put complementary assets alongside it. Value comes from filling the void. Value comes from the land at the end of its life. Quarries generate value in a variety of ways, and Boral has a remarkably unique portfolio nationally that would be difficult to replicate. To come to my final slide, let me talk about the network, the upstream assets, of which we're going to see this afternoon. I'm gonna start off by talking about geography. To point out the obvious, Sydney is bounded to the north by a river and national park, to the west by a mountain range and a national park, to the south by a national park and a river. It's not just the natural features that bound Sydney. If you think about the rock and sand resources that exist to the north of Sydney, for example, it's very difficult to project them into the Sydney market by rail, for instance, because you're competing for rail pathing down the Great Northern Line that's jam-full of passenger trains. These sorts of constraints, be they physical or structural, has driven the industry towards the south and the west, southwest of Sydney. We find ourselves south of Wollongong at Dunmore and in the Southern Highlands at Marulan and Peppertree, with a number of competitors alongside us. Both of those assets or those locations we operate in, we have extensive reserve and reserve lives. As Rajiv said, it will be well more than a century, although I'm trying to steal some rock off him, so maybe it'll be a bit shorter. We've got long lives in both locations. Maybe our competitors do. What we have that is remarkable is that rail connectivity. To have those quarries connected by rail into terminals in the center of the city, while we physically might be 100-150 kilometers from our demand locations, it is virtually as if we were 50 kilometers, significantly closer than those who can't get onto rail, much less get product off rail. In fact, this degree of integration is so tight, if the stars do align, it's possible that a ton of rock will go through that in-pit crusher on the top left-hand side, onto a rail, onto a train that will run up the line into Peppertree, batched at the St. Peters Concrete terminal, and coming out a DMG pump inside six hours. There will only be two operators that have moved that ton of rock. One of them is the train operator, and the other is obviously the concrete truck driver that delivered it to site. That is unreplicated anywhere else in the country. You think about the number of pieces that need to be in place in order to achieve that degree of integration. You need the resource. You need to have consented it. It needs to be on a rail path. You need a terminal, and the ability to get industrial land sat beside a rail offtake facility is very scarce indeed. We're very proud of our quarry portfolio. It is the result of careful management of natural resources over an extended period of time. It's taken ongoing capital investment, increasingly it depends on the management of very complicated stakeholder relationships, so that we are both actually are, and are seen to be, a very responsible, credible operator of these God-given gifts. It's the thing on which my team is very keen to try and build something great each and every day. Thank you. I'll hand back to Vic now for questions. Thanks, Lloyd and Rajiv. Much appreciated. We'll go into Q&A. Open for questions. We have time before we board the bus. Obviously, Rajiv, Lloyd, Belinda, we are all available for questions, but happy to take any questions if you have any before we. Okay, thanks for that. The first one is on your comments on pricing, right? Yes. You followed a few regions or geographies, where you see price realizations, right? The price realizations. Could you just give us some clarity between those or on those? We probably won't go into the specific region, sure. Otherwise, we are in the middle of the budget. We still want to get the top budgets up by, for next year. I think ultimately, if you, if you remember, we said at the half, there were some regions where the price traction was not happening at that time. At this point, we are all having a traction. Obviously, some parts, because we've got so many clusters, there are some part we are definitely seeing that escalation moving into realization, but still very good. I mean, ultimately, the whole idea here is we should and we want a margin expansion, and margin expansion should come from both price and cost. Are we there nationally? No. There are some regions for sure. We're definitely. Okay, quick one on the demand side, right. A lot of comments that the government is looking at cutting some of the infra projects. Have you seen any early facts and how are you placed for that? Yeah. Couple of things. One, we are definitely seeing a resi drops, as mentioned before. We are our house view, and again, based on no economic theory, based on the feedback we're getting from salespeople and everything, I think the resi will remain low for the first half of next financial years. Remember, what we see in resi is a lagging effect of approvals. What you saw in approvals four months ago comes into our demand now because it falls through. As it comes up, we are hoping that the second half could be better than first half. That's on resi. We are absolutely seeing most governments now moving money from what I call a public infrastructure to social infrastructure, right? I mean, New South Wales government has publicly said that they would be spending a fair amount of money on social infrastructure rather than a high newsworthy infrastructure. Based on the shortage of housing, based on the social infrastructure, and based on the denomination of government wall-to-wall in Australia right now, we are thinking the social infrastructure will take over public infrastructure. Can I give you exact timing? No, sure, but ultimately, that's where we are. Yeah. Yeah. Andrew. Good day, Vic, Andrew Scott, Morgan Stanley. You spoke in your opening remarks about double-digit margins. Been, you know, pretty significant structural change over the last couple of decades. Do you reckon you can get there with the industry structure as it is, or does it need further consolidation? I think when I talk about double-digit, the idea is to get Boral there without any of that. I think if you, and I've said this before, Andrew, if you look at this, just lay down the whole market structure of construction material business in Australia. I mean, you don't need to be as smart as Lloyd from Harvard to say there's a room to improvement there, right? Clearly, there's work to be done. Having said that, I don't think so Boral is looking at that right now. We need to get our house in order. In my experience, only the organization who are strong inside can afford to go and do right consolidation activity then. I do think Boral should get there without that, in my mind. I think there's enough improvement and P&L to happen. Yeah. A couple on carbon. I don't know if you want to take them, Vic, or for Rajiv, but, first of all, Rajiv, when you spoke to the Safeguard Mechanism, you spoke about a 4.9% reduction. Do I read from that, you don't expect to get a trade-exposed status and a lower reduction rate? The rules that have been put in place is for those 215 entities, you got to go by 4.9% reduction. When you look at the very mark curve, we are below that curve, provided we progress with our fuel substitution actions, and they're well underway, so there are no concerns on that front. Now, what is not very. publicly available is that there are some nuances in that rules. What the government has said is, if in the course of hitting that 4.9% decline, if your emission is impacted by 3% or more, then you can apply for a lower decline rate. What I'm showing there is, without any special treatment, we will get there. Got it. Just, staying with you, just, you talked about CBAM, and obviously, you guys are big cement importers. I'm just interested, to what extent can you get good reporting on carbon from your import sources? That's a good question. I think, it is a bit variable, so it depends on the source, right? If we are importing from Japan plus Indonesia, from Japan, we can get that data very readily. From Indonesia, it's little bit more challenging. I think that will change once CBAM rules are in place. To play here, they will need to be able to provide that. That will be one of the things we'll be working with the government to make sure that is available. That's fine. Hence, Andrew, this CBAM is so critical. Australia has to accept CBAM and the decarbonation, and that's the next phase of it. Any other questions? Just gonna give you the mic. Good morning, Vik. conscious of you don't control demand, where do you see your fixed versus variable costs across your key segments at the moment? Obviously, you've got operating leverage both up and down. I'm just sort of trying to get a gauge as to where the volatility is at the moment and how you're going to address that in the medium term, please. It's a good question. I think there is no doubt, I think we, at this point, that as we get the fair price for the fair cost what we are facing, ultimately, the long-term level out the business and the industries, that the cost fundamentally per ton comes down, right? I mean, that I think we talked about logistics before, we talked about operational costs before. I mean, cement has a different profile of cost than quarries and then. Ultimately, the top five costs in Boral are fundamentally, if you, apart from material cost, you've got your cartage cost, you've got your labor, you've got your R&M cost, which is quite a big, and then your 4th, 5th are your energy cost, right? Energy, as Belinda said, trying to manage that through commodity hedging, so take the volatility out. Fundamentally, labor, R&M, supply, and cartage costs are the three big issues. I mean, they are big numbers in our P&L, and frankly, that's where we talk about getting the OE down, all that stuff. I think ultimately what good looks like for us, and this is what we're working through, cost per ton needs to come down, and as the ton goes up and down, your operating leverage should stay. That is what we are trying to do. Obviously, it takes some assumption that price stays at a certain level. Now, there is no doubt, and it remains unknown, we want to be extremely disciplined about pricing, and I think price is still a challenge in the market for at least another 12 months because of inflation. I think the challenge and the discipline of the market really comes into game if the demand, as we talk about resi slowing down or something, that's a real test for us, a real test for the industry. I mean, from our perspective, we've been very clear within the organization, we are not gonna fill our book with bad volume. We would rather have a cost initiatives running hard than fill a book with bad volume. I think that's the focus. It ultimately boils down to volume, price, cost. That equation optimum, and that's what we're trying to do. Vik, can you elaborate on the opportunity, moving cement from Geelong into South Australia? What's the timeline there? What sort of investments do you need to make? Yeah, actually, that's a. I'm glad you asked the question. I think this is an industry issue as well. We've got to be careful. There's a capacity in South Australia which belongs to a competitor. We have built a Geelong capacity. We used to have Waurn Ponds plant. We built a Geelong capacity. And to service Victorian market, we were moving stuff from New South Wales to Victoria at a heavy cartage cost. What we want to do is use the Geelong to service the Victoria market, and what ultimately good looks like is that the industry players, of course, setting up all, make sure it's all in legally framework and all properly done above board, is to be able to use that capacity effectively. I mean, ultimately, it makes no sense for a competitor to move cement into Victoria and us moving cement into South Australia when cartage cost is one of the biggest costs in each P&Ls. What other industries do cleverly, and what we should be looking at, is saying: Is there an optimum way where we service the Victorian market, they have a capacity in South Australia, they service South Australian market, obviously there's a handshore pricing and all that stuff. That is what good and clever looks like. Otherwise, there's always a race to the bottom, right? Surely construction industry can do that as well. We are not getting up in the morning, and I can assure you, where Rajiv says, "I've got to move my cement into South Australia." We want to service our competitors in Victoria, and we are not proud to take their product into our concrete batch plants in South Australia, and that's what we're trying to do. Yeah, because I think that's optimum for the industry and keeps the profit up. Keith? Morning, Vik. Morning, Keith. Just a point of clarification on your price comments. When you say, you know, there's a difference between realizing price, being margin expansion, and getting prices up, you've been pretty clear that in some regions you're getting price realization, i.e., margin expansion. For the regions where you're not seeing that yet, is the expectation for you to achieve price realization or margin expansion in those regions as well, so such that the entire network sees margin expansion? ... if that's the case, do we see an acceleration of margin improvement into 2024? In our process, Keith, of saying we need to get to double-digit EBIT, ultimately margin has to expand. I mean, Boral finished full year last year at an EBIT margin of, I think, 3.8%. I think 3.6%, 3.8%. At half, we were 5.7%, right? You know, we've got to get to, obviously, double-digit. Ultimately, there are three levers we have. You know, volume, which we can't control. Obviously, we've got to be disciplined and be sales effective in the marketplace. Price discipline and cost, right? We'll keep moving the cost lever to a certain level and the efficiency lever. Ultimately, price has to go up. I think the regions where we are not getting margin expansion, we've got to keep working on it. Ultimately, we also don't want to be mindful of the, you know, market share position and all that stuff. I think that's the game. I mean, we just want to... The regions which we are not getting margin expansion, needs to get margin expansion, because Boral cannot run a 5.7 EBIT or 3.7 EBIT. That's just not unsustainable, sustainable. What are you attributing the differences to in those regions? Why are those regions not seeing margin expansion yet? What's the difference in competitive dynamics? You know, is it a Boral issue? Is it a market issue? Well, look, listen, I think we mentioned a couple of territories at the half year's time. You know, some were low to come off the ranks. I mean, there were some sections, some parts of the country where, you know, Boral took a lead and others followed, and that was their choice. The other state, just the competitive to how the performance are. It also depends on, you know, always the market share leaders lead, or the market leaders lead, and wherever we can lead, we are leading. The other stuff, you know, we're just watching them play, basically. Just the competitive dynamics. Okay. Thank you. Okay. Hi, Vik. Hi, Hi, Sam. Sorry. You go, Simon, I've got that. Yeah. Just, can you give us a bit of a background in terms of systems, like IT systems, in terms of visibility on pricing, what's happening with the guys in the trucks and their pricing? Obviously, you had a competitor who had a few issues. They said they were putting up prices, and it wasn't flowing through. What visibility do you have? Also, can you talk about culture and KPIs and measuring their performance? Sure. for the sales travel? Thanks. Sure. I'll talk to systems, and you talk to those people. Yeah. On systems, one of the thing is, Simon, I think most industrial companies have what I call a clunky system, right? I mean, and it's, our system is no different. You either have a system which is fully digitized to the point that it is a genuine enabler to your living, or it does the job and gets you the data. I'm saying we have a system which does the job. We have the data. We are closing, Belinda and the team is closing month-end end by day three. We are getting all our information on pricing, volume by day five. I mean, we are not sure of data. Does it take a bit of extra effort to get there? The answer is yes. Ultimately, we do want to get to a point where all that is fully integrated, but I'm not intending to spend AUD 50 million on SAP or anything else, I can assure you. We will just work through it, because the good thing is modern technology allows you to get things done. I think that's very clear on that. We have a line of sight. Today, we can get line of sight of pricing by region, by salesperson. We can get by product line, right? We can slice, dice pricing data like no tomorrow. We are not sure of KPIs. We have not finalizing the PMF scorecards, which are on people, market, assets, and finance, and we will have by sites, by asset PMF scorecards running by July. That will link into the KPIs for next year as well. On culture, Belinda, I don't know whether you want. Yeah, I think, on culture, I think it's a couple of things. One was, I think the team was really looking for a strategy and how they drive forward, and I think that Vik has set a really clear strategy that was signed off by the board, so everyone knows what they're marching towards. We're rolling that out at the moment. The other thing Vik talked about is where we're also putting artifacts in place, so values, vision, and I think teams really rally behind that stuff, and we're currently rolling that out at the moment, too. We'll do another cultural survey later in the year, I think September-ish. We'll get another assessment, and we'll still have work to do, but I think we're on a really good trajectory for giving everyone the clarity that they really wanted, and wrapping our arms around the team. Just for everybody's benefit, Sam is with us in the trip, EGM, P&C, feel free to get our insight, people who are traveling on that issue as well. Simon, anything else from you? No? Daniel? Morning, Vik. You've, as you've reviewed the asset portfolio, and looked at the opportunities, I think you mentioned that, there's some, you know, batch plants that may not be located in the right positions. Can you talk about where are you in that process and how long that process can take in terms of optimizing-? Yeah ... the portfolio? We call it an internal drag index, Daniel. Every leader, Rajiv, Matt McKenzie, the guy, the fellow who runs WA, they were drag index target. We look at every month, the sites which are not making money, the sites we are making money, and how much is an issue. I think we are walking away from, slightly from the argument of, "Oh, don't worry, guys, my concrete batching plant is not making money, but somebody upstream is making money." That's the whole concept of transfer pricing I talked before. We are, significant improvement happened. Interestingly, what we measure gets fixed. I won't give you the number, but quite a few of them became profitable suddenly once you start looking at it, because people start managing their cost and all that stuff. That quite was helpful. The other issue is what we will end up with a rump of batching plants, which we might come to the conclusion after optimizing the cost, that they might not ever be profitable or not profitable in an existing context. That's the call we will have to make, where we would say, "No, we're going to keep it because it's a wide space we don't want to create for a competitor, because then it is a loss leader to get our material to the marketplace." That is not the first answer. One of the things we are trying to move away from Boral, that the downstream assets needs to be profitable, and your first answer should not be just because upstream is making money. T hat is your last answer after you have tried everything. I'll give you an example. We had sites where, you know, we were not making money and but we were paying overtime, right? You know, all of that stuff, fundamental, basic stuff. So we will get it right. Can I promise you that every single concrete batching plant will make profitable always? No. If they are by the time we are left, they will be one for a very good strategic reasons. Can I also say to you, this is a dynamic piece. I think Boral should we should do that for next 10, 20, 30 years always, because the whole reason this downstream asset, assets exist, for two reasons: one, to be the mouth of the big infrastructure assets from the quarry, because they take the material, but more importantly, because of the customer proximity, strategic advantage. If your customer around you have fundamentally changed, then having a plant sitting there actually makes no sense because you're tying up your asset and you're tying up your trucks. That is a constant battle we will always have, and we should always have. On the upstream assets, as you build them for long-term life, on the downstream asset, our challenge, Boral's operating discipline, is about making sure that they remain competitive and they're profitable always. That's the plan, and that's we're working for. Everybody has a metric, or the relevant managers have a metric, and we look at it. Yes. Can I just add on that, too? Yeah, please. We're also looking at capital allocation for those sites, too. If those sites are not performing, then we shouldn't be allocating capital. We should be having a really robust conversation on capital, and that's happening now as well. Good point. Thanks, Belinda. Perfect segue. I was about to ask you a little bit more, around the detail of your capital allocation process, how that's changing, metrics that you're using, the debates you're having. Could you just give us a bit of a sense of the evolution in your thinking there? Yes. We have a capital investment committee every month that a bunch of the EGMs, myself and Vik, sit on, and we have a very robust conversation in that capital allocation. I think really what we're trying to do is make sure we have really good business plans at the start, and then we have good dialogue afterwards in terms of, are we achieving the scope that was in those plans? Are we doing it for the cost that was in those plans? Do we have the right review after all, afterwards? Just, I think, a lot of rigor around capital overall. At the moment, we're going through our budget process, so we're looking at what is the optimal view. Vik's mentioned the goal is to spend around our depreciation and amortization, so that's what we're working towards. We're looking at what is the biggest wins as we allocate that capital out. Very robust conversations overall. Any particular evolution in metrics that you're focused on? I'm not sure that it's an evolution in metrics, but it's the discipline around those metrics and making sure that everyone feels very accountable, that if they've got something signed off, that that's exactly what they're delivering, and if they're not, they're coming and having a conversation with us. I think there's a lot of visibility now at that level. Gotcha. Can I just also add what Belinda did mention? The CapEx discipline, it is also the secondary part of cash, so we are now looking from that perspective. Quite often in Boral, we focus on capital because, you know, that's a glamour piece. I got to do a project. The same discipline is being applied to RMM as well. If you look at the amount of cash which goes out of the business, it's actually more in RMM than capital, right? We got to So the similar discipline of cash is being applied to capital as well as RMM through the delegation of authority and all that stuff. I think the... There are a couple of things we did say we have as part of the discipline and rigor, which Belinda mentioned, is to make sure that the capital projects are owned by the business units, with the segment leaders. They own it, they own the delivery of it. For this year, we made sure all the capitals which were signed off by the leaders over last two years, approved, their benefit was part of the budget. We are closing the loop saying: You said so, you promised so, show me the money. You said so, you promised so, show me the money. Close the loop, that gets a level of accountability. You also have to appreciate the operating model is fundamentally changes, changed. five years, a year ago, the operating model of Boral was what I call an airline type model, make, move, sell. You had a separate kind of functional lines rather than a P&L lines. Now, we have actually P&L leaders who are responsible for bottom line. The P&L goes not only to EGM level, which are CEO minus one, but to CEO minus two and CEO minus three. They are held accountable for volume, price, cost, cash. In that regard, there's a very different line of accountability happens suddenly, because prior to that, yes, I got a CapEx, but then somebody else runs it, and if he stuffs it up, then it's his problem, not mine. We are now holding people, saying: No, you are a P&L leader. You hold the P&L. Your benefit is accountable, and that's the capital. We signed it for your P&L. You've got to show the benefit. That closed loop is quite critical. Just on that cash, and I'll move there for a minute, is that, we are actually holding now for next FY24, sales incentive will be linked to cash collection, right? CapEx is seen as part of the cash discipline in the organization, not just the cash alone, the capital alone, but the whole piece of where the money is going and how we're backing this whole thing up. Yeah. The only thing I'll also add is, we have said capital will match DA. If there is over and above, either we do a quarry acquisition or we fundamentally change our mobile fleet profile because we've got too many LODs or owner-drivers versus own, we will then share that publicly. We will say we are spending AUD X million because we bought this asset, but that'll be above the capital. I just want to clarify. Yeah. They'll be strategic, and there'll be benefit in the future P&Ls, yeah. Hi, it's Neeraj from Goldman Sachs. Yeah. Just a question on the recycling business. 2.2 million tons, pick your own timeframe, but, you know, how big do you think that business should get to? Speaking of capital allocation, what's? Yeah. What's the capital intensity of those aspirations? Yeah. We have said we want to be 10% of our total quarry volume. We've said that, so we do about 40 million. I'd like to see that to be four million tons, and then, obviously, as we grow with it. When we see capital allocation on that, there are a couple of things in there. We are looking at partnership in Victoria with somebody right now to make sure we do a proper partnership. The way recycling works, as some of you may well know, is that when you collect... This is all C&D, by the way. There's not pure, no municipal, no nothing else, C&D. When you collect a bin from your home, that is collected at the rate which includes levy, right? Let's assume 100 tons gets collected from your house. It goes into a first-level transfer station at a gate fees of anything from AUD 200, AUD 250 per ton. That 100 tons, after first level of processing, becomes 50 tons of usable C&D. The other 50 tons or 40 tons goes to landfill. In fact, C&D could be 70 or 80. That 80 ton, good tons, that's which entered into that building for AUD 240 per ton, let's assume 50 tons, AUD 50 per ton for processing, that is pure margin at the first level transfer station. That comes into us at a much, much lower gate fee price. Our view is, we never want to be in a collection business. That's not our business. We don't want to go there. Our move is that we can move one step up into a first-level transfer station and can capture a lot of that value and also capture a lot of their material. You will see us going there, whether in relate partnership with other companies or of our own. That's the investment you will see that come through, because there's a lot of profitability there. Presumably, you're looking for those activities to, in your words, stand on their own two feet, separate from the quarry life expansion? Absolute. Recycling is run as a separate P&L. It is not part of quarries. There's a general manager, a young, very dynamic general manager who runs it, and it is run as a sort of separate P&L. Thanks. Yeah. Vic, just interested on the price increases across the industry, the extent to which it's sort of seen as a bit of a cost pass-through, and that if some of these input costs do fade, with some of the maybe more sophisticated customers look to get that back in terms of lower pricing from the industry? I think there are a couple of things here, Matt. Is that, one, there are two things which has to, and I've said that multiple times before in public domain, this whole concept of fixed price contract has to go away. I do think market, both us and the industry, has to take the risk of up and downs, frankly. I think, and that's why I don't see inflation going away. I mean, RBA has said the inflation not going away anywhere, so we don't see that in the next 12 months. Ultimately, at the end of the day, if it does seriously comes down, we are now literally talking to all our customers about what we call a PPI index. There's a very good article the other day, where the difference of PPI index of concrete is a different. Oh, I think it was in Young Skeet's paper. If you look at the PPI index for concrete versus PPI index for construction, there's a big gap. Whole industry has actually not been disciplined about the index. If you just follow the index, we would be okay. I don't mind that if they ask for it, but if the inflation is coming down and if it's index with it, so we are not tying ourselves into bad contracts for 10 years, that is fine. Ultimately, and by that time, we are hoping that our costs will be in a much better shape, and we'll get the operating leverage. I do think it's about at least one to two years away, at least two years away, in my mind. I mean, they'll keep trying, of course, which is respectable. Okay, well, if that's the case, no questions, we will just go. Thank you again for your questions. Thanks, Melinda. We now just plan for the logistics for rest of the day. We will, step one, we'll First of all, let's go through the logistics. First of all, you will be on a bus for two and a half hours, so please make sure you use the amenities on this floor, right, Dana? Just outside. Because we are not intending to stop, we just go straight to Murwillumbah. The bottles of waters are available in the bus. Snack pack. The snack pack is available in the bus, so you'll. The first stop is Murwillumbah, where Rajiv is gonna host with his team. We're gonna go to Peppertree Quarry, where Lloyd is gonna host with his team. We come back to on our way back to Berrima. There are a couple of safety rules, which is really important to us. None of you are. We ask you not to wear safety boots, which is fine. We have now laid out clear paths and exclusion zones where you can walk, where you can walk. There are a couple of things here. If you go up the stairs, in our rule, points of, three points of contact, you will find uneven surfaces, so please make sure you are safe and careful. Look out for traffic and vehicles. These are heavy operating sites and heavy sites, so please make sure you watch out for that one. Wind, cold, et cetera. I'm assuming you'll have your jackets, fingers crossed there's no rain, will be great. Mobile phones. Please try to use your mobile phones in the bus. When you get to the sites, it'll be great not to use that. No photography, please. We will give you the pictures. We will give you all that available, but we try not to take pictures. Please, not of the sites and assets. There is a safety page in your bag, right, Dana? It'd be great if you can sign it and please hand it back. That's part of our safety process. People who are visiting site, make sure you sign it and send it back to us. In case of emergency, there's enough bottle people around. They will be able to help you. If there's a medical physical condition, please do let us know. Yeah? We are meeting downstairs in what time, Dana? 10 minutes. Yeah. Okay. We'll see yoone in the reception counter. There's a bus waiting for all of us. Thank you.