1 / 30

WHERE KNOWLEDGE IS POWER

Melbourne Convention Centre 20 th September 2012. Market Outlook F2013 & Beyond. Phil Ruthven, Chairman. WHERE KNOWLEDGE IS POWER. Topics. Australia’s Investment Scene The Construction Industry The Construction Materials Scene Business Success. 1 . The Investment Scene.

susan
Download Presentation

WHERE KNOWLEDGE IS POWER

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Melbourne Convention Centre 20th September 2012 Market Outlook F2013 & Beyond Phil Ruthven, Chairman WHERE KNOWLEDGE IS POWER

  2. Topics • Australia’s Investment Scene • The Construction Industry • The Construction Materials Scene • Business Success

  3. 1.The InvestmentScene

  4. The Market EconomyF2012 Capital Expenditure 28.0% Consumption Expenditure 72.0% Govt. CapEx GBEs GG 1.6% 3.7% Housing6.0% Company CapEx2 16.8% Household Consumption 54.3% Consumption17.0% Consumption110.7% Nat. Govt. State & Local Government 1 Mainly on behalf of household 2Incl. inventory change Gross National Expenditure (GNE) $1468 billion(current prices) Source: ABS/IBISWorld 05/09/12

  5. Capital Expenditure Growth 4 qtr moving average to June 2012 Recessions occur when GFCE falls more than 8% Years, ended June Source: ABS5206-06 05/08/12

  6. Capital Expenditure By Type of AssetYear to March 2012 R&D 3.8% Software 2.7% Mining 1.7% Biological 0.9% Art 0.4% IP & Other Intangibles Defence 2% Increased Inventories 1.7% Gen. Govt. 9.5% 11.5% GBEs 5.8% Machinery & Equipment 20.5% Engineering Construction Dwellings 22.2% 18.8%1 8.0% Buildings Includes Ownership Transfer 4.1% Excludes government infrastructure , additional 8% (included in GBEs and Gen. Government) Note: 1 27% when government Investment (GFCF& increased inventory) $401 billion Source: ABS/IBISWorld 05/09/12

  7. Changing Asset ImportanceBy Type % of total basis 1960 1970 1980 1990 2000 2012 IP, Intangibles Machinery Eng. Construction Buildings Dwellings O’ShipTransfer Government Other 4.8 11.1 34.1 106.8 160.3 401 $ billions

  8. 2.The ConstructionIndustry

  9. The Australian Construction IndustryBy ActivityF2012 Buildings 16.7% Engineering Construction 60.0% Dwellings23.3% Work Done $197.1 billion (excludes special trades services, c.$60 billion)

  10. Dwellings

  11. Housing Construction Completed Work $ billion (2009-10 prices):1977-2012 Value of completions ($ billion, 2006-2009-10 prices) Year, ended June Source: ABS: 8782-01 11/07/12

  12. Dwelling Completions: AustraliaNumber of Completions:1960-2012(E) Year, ended June Source: ABS: 8752-07 11/07/12

  13. New Dwelling CompletionsIncluding conversions F2012 ACT 2.7% NT 0.6% Tas 2.0% SA 7.4% NSW 19.8% WA 14.6% Queensland 17.6% 141,480 (E)

  14. Buildings

  15. Building Construction (Non Residential)Work Doneto 2012,$ billion (current prices) $ billion (current prices) Year, ended December IBISWorld

  16. New BuildingNon-residentialBy type of buildingYear to March 2012 Includes Wholesale premises Other 9.3% 16.6%Offices Warehouses 7.3% Factories 3.5% Hotels 3.2% 16.7%Shops Entertainment6.2% Aged Care2.1% 17.7% Health12.0% Education 2.3% Transport & Other Commercial Work Completed $32.8 billion Source: ABS 8752-36c

  17. Infrastructure

  18. Australian Engineering ConstructionWork Doneto F2012,$ billion (current prices) $ billion (current prices) Year, ended June IBISWorld

  19. Engineering Construction By Type Of WorkWork DoneYear to June 2012 Roads 15.8% Bridges 0.9% Railways 7.6% Harbours3.5% Pipelines 2.1% Oil & Gas Coal Bauxite/ Alum. Other Minerals Other Heavy 0.9% Recreation 4 2.6% 29.9%Transport Mining& Other 42.7% Telecoms Electricity 12.1% Water 4.4% Sewerage 3.0% 4.2% $ 118 billion Source: DX8762-11

  20. Engineering Construction By Type Of WorkWork Yet to be DoneAs at June 2012 Oil & Gas Coal Bauxite/ Alum. Other Minerals Other Heavy Ind 0.6% Roads 7.1% Bridges 0.4% Railways 6.6% Harbours4.3% Pipelines 3.5% Other 0.3% Recreation 0.3% 21.9%Transport 9.3%Utilities Mining & Other 67.5% Telecoms 1.2% Electricity 4.1% Water 3.4% Sewerage 1.8% $140 billion Source: DX8762-11

  21. Engineering Construction By StatesShares of total by states and territories 9.0 11.5 19.2 33.1 118 Work Done ($ billn.) NT ACT Queensland WA NSW Victoria SA Tasmania Source: ABS Series A&B 10/10/11

  22. 3.The Construction Materials Industry

  23. Construction Materials: Extracted F2012 Rock, Limestone Sand & Clay Gravel Revenue ($billion), F2012 (E)2.46 1.05 Growth F’12 to F’17 (% pa, real)4.6% 3.4% VA Contribution to GDP (% )0.10%0.04% Output (million tonnes) 112(rock) 34(sand) Exports ($ million) 84 25 Imports ($ million) 29 2 Enterprises 195169 Outlets (‘000)262 179 Employment (‘000) 5.2 2.5 Wages ($ million) 378 149 Key Players Boral27% Boral 30% Holcim 26% Hocim 26% Hanson 23% Hanson 24% Fletcher 10%

  24. Construction Materials: Manufactured F2012 Cement & Concrete Limestone Slurry Revenue ($billion), F2012 (E)2.38 5.95 Growth F’12 to F’17 (% pa, real)1.4% 1.9% VA Contribution to GDP (% )0.06%0.08% Output (million tonnes) 9.123.8(‘000 cu M) Enterprises 7250 Outlets (‘000)14 850 Employment (‘000) 1.95 6.0 Wages ($ million)273 473 Key Players Adel.Brighton30% Boral 20% Boral 20% Hocim 20% Cement Aust. 20% Hanson 20% Sibelco 6.5% Barro 5.5% BGC 5.5%

  25. Size and Profitability of Key PlayersRevenueReturn on S/F after tax, % Enterprise (latest, $ billn. Latest Last 5 years Adelaide Brighton (D11)1.1115.5 15.9 Holcim(D11)1.8510.0 11.2 (4 yrs) Fletcher Building (J11)7.437.6 10.6 Hanson (D10)1.58 5.7 7.1 Sibelco(D11) 0.37 6.5 1.6 Boral(J11) 4.78 5.3 5.1 Cement Australia (D11) 0.49 1.2 3.8 BGC (J12) 2.20 n.an.a Average (weighted) 7.4% 8.8%

  26. 4.Business Success

  27. Australian Profitability By Major Industries Return on Shareholder Funds (after tax), Top 1350 businesses5 years to F2010 Includes private and government enterprises 4.1 8.2 Percent Source: IBISWorld22/11/10

  28. Australian Profitability By Major Industries Return on Shareholder Funds (after tax), Best 1005 years to F2011 • 3 companies • 4 companies • 6 companies • 9 company 23 companies • 22 companies • 9 companies • 6 companies • 1 company • 1 company • 8 companies • 1 company • 4 companies • 2 companies • 1 company Includes GBE & private enterprises 40.7 40.7 Percent Source: IBISWorld 06/04/12

  29. What the Best Enterprises Are Doing 1. They stick to one business at a time and do not diversify 2. They aim to dominate some segment (s) of their market 3. They are forever innovative,valuing the business’ IP. 4. They outsourcenon-core activities to enable growth. 5. They don’t own “hard” assets. 6. They havegood and professional financial management. 7. They plan from the outside-in not the inside-out 8. They anticipate any new industry lifecycle changes. 9. They follow world best practice for their own type of business. 10. They developstrategic alliances. 11. They develop unique organisational cultures. 12. They valueleadership first and management second.

  30. To download this presentation go to: www.ibisworld.com.au ruthven cmic Enter details here to download presentation

More Related