PERFORMANCE SUMMARY • Trading revenue US$2,868 million, up 20% on the previous period (A$4,139 million, down 2%) • Earnings before interest, tax, depreciation and amortisation (EBITDA) US$591 million, up 15% (A$854 million, down 6%) • Earnings before interest and tax (EBIT) US$392 million, up 17% (A$568 million, down 4%) • Profit margin (EBITDA/Trading revenue) 21%, down slightly from 22% FEATURES • The Florida operations were particularly strong with demand levels increasing towards year end • US$ return on funds employed (ROFE) was up strongly to 17.9%, from 14.5% the previous year, with increases in all businesses except concrete pipe and prestress • The former Kiewit operations, acquired in September 2002, performed ahead of expectations, contributing EBITDA of US$93 million PROGRESS AGAINST PRIORITIES • Continue to grow, mainly through value adding bolt-on acquisitions: made one small acquisition, Superstition quarries, in Arizona. Invested US$150 million (A$213 million) on acquisitions and expanding the base business • Continue rate of performance improvement relative to competitors: results continue to be at the upper end of industry peers • Reduce costs through operational improvement: operational cost savings totalled US$55 million (A$80 million) • Improve safety and environmental performance: injuries fell by 20%, but sadly one person lost their life while working for Rinker Materials. There were no significant environmental incidents KEY OBJECTIVES THIS YEAR • Continue to grow through value-adding greenfield investments and acquisitions • Enhance our quarry reserves to supply the Florida market • Improve the performance of the concrete pipe business • Further develop price leadership skills • Work towards divestment of non-core businesses • Increase productivity and reduce unit costs through operational improvement • Continue to develop line management skills to provide for management succession • Continued focus on our Zero4Life plan for safety, health and the environment PERFORMANCE SUMMARY • Trading revenue A$1,201 million, up 18% on the previous period (US$839 million, up 46%) • Earnings before interest, tax, depreciation and amortisation (EBITDA) A$209 million, up 21% (US$146 million, up 49%) • Earnings before interest and tax A$158 million, up 33% (US$110 million, up 63%) • Profit margin (EBITDA/Trading revenue) steady at 17% FEATURES • Made five acquisitions during the year and opened one new concrete plant. Spent A$49 million (US$34 million) on acquisitions and expanding the base business • A$ return on funds employed (ROFE) was up strongly to 17.1% from 15.9% • Formed Australia’s largest cement manufacturer Cement Australia (CA), in a joint venture with Hanson and Holcim. CA produces around 40% of Australia’s cement PROGRESS AGAINST PRIORITIES • Implement the Customer FIRST! initiative to focus our organisation on our customers’ success: Customer FIRST! training now rolled out across the Readymix group • Recover market share loss while locking in current price levels: recovered some market share loss after the price increase in December 2001 • Increase productivity and reduce unit costs through operational improvement: operational improvement cost savings of A$10 million • Improve financial performance of our asphalt business to acceptable levels: the business failed to deliver the turnaround in its earnings performance last year. However, initiatives during the second half of the year provide confidence that the performance will improve this year • Grow through our customers’ success and through small bolt-on acquisition: achieved with the acquisitions of Excel, Broadway & Frame, Beerwah and Edwards Concrete • Improve safety and environmental performance: injury rate fell 10% but, tragically, two people – one employee in Australia and one contractor in China – lost their lives during the year KEY OBJECTIVES THIS YEAR • Continue price recovery in all products, to ensure all operations are earning above their cost of capital • Further recover market share loss helped by Customer FIRST! initiatives • Increase productivity and reduce unit costs through operational improvement • Improve financial performance of our asphalt business to acceptable levels • Improve financial and operational performance of Cement Australia to deliver identified synergy benefits • Continue to grow though small bolt-on acquisitions and expansion of the base business • Improve health, safety and environmental performance