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Investor Presentation and Site Visit5 April 2011

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Today‟s agenda

Site Induction Colin Davis Factory Manager

Introduction Peter Boyd Alesco CEO

Business overview Stephen Cox GGM, C&M

Site Tour (Wyong)

Trade Store Visit (Tuggerah)

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Leadership team

Peter Boyd

CEO

Alesco

Stephen Cox

Group General Manager

C&M

Marathon TyresParchem

Construction Supplies

Gary Nankervis

National Sales Manager

Shane Redhead

National Trade & Operations Manager

Steve Betts

National Supply Chain Manager

Richard Whitfield

National Marketing & Technical

Manager

Richard Barclay

Group Finance Manager

John Martin

Group Risk & OHS ManagerF

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C&M contributes around 25% of Alesco‟s revenue and EBITA

FY10 Revenue FY10 EBITA (before significant items)

Note: FY10 Revenue and EBITA figures exclude the Water Products & Services division which was sold in February 2011.

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Project Restore

Construction & Mining

Garage Doors & Openers

Functional & Decorative Products

1 Diagnose

“Diagnose” the issues in our businesses and

what we can do to address them;

2 Fix

Develop and implement programmes to “Fix”

our businesses so they can deliver improved

performance; and

3 Develop and grow

Ultimately earn the right to

“Develop and Grow”

through further investment

C&M is continuing in the fix stage (S&OP – manufacturing), but is also focused on

developing growth opportunities

Current status

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Who is Parchem Construction Supplies?

• Parchem is a leading manufacturer and supplier of products and equipment to the

Australian & New Zealand concrete and construction markets, with sales branches

throughout mainland Australia and New Zealand

• Parchem has around 325 employees

• Parchem owns or has exclusive distribution arrangements for most of the brands sold

through the business & manufactures around 50% (by value) of products sold

• Parchem accounts for around 70% of C&M‟s revenue

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What sets us apart?

o Strong brands and a broad range of products

for the construction and concrete markets

o Wide footprint – coverage across Australian

and New Zealand

o Expertise – teams of technical and industry

experts in the business providing customer

solutions

o Innovation – access to new technologies

through global network

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Working towards “Zero Harm”

• Focus for 2011-12

– Continued focus on risk assessment and hazard reduction & control

– Increased focus on leadership and safe behaviour programs to further develop the

safety „culture‟ of the business

0

2

4

6

8

10

12

14

16

18

FY 07 FY 08 FY 09 FY 10 FY 11 (YTD)

Parchem LTI's & LTIFR

LTI LTIFR

0

50

100

150

200

250

300

350

FY 07 FY 08 FY 09 FY 10 FY 11

$'0

00

's

Workers Comp Premiums

Premium

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Genesis of the business

Large

Medium

Small

Parchem

Construction

Products

Cu

sto

me

rs

Delivered

business,

customers

serviced primarily

by sales force

• The original Parchem business has

operated in Australia for over 40

years under various names,

including Fosroc (a leading Global

brand)

• The business was part of Parbury

when it was acquired by Alesco in

2000 and at that point was a loss

making business

• Organic growth of ~65% since 2003

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Broader product portfolio through acquisition

Parchem

Construction

Products

Delivered

business,

customers

serviced primarily

by sales force

Flextool

Jan-06

Construction

Equipment

Concrete

Technologies

Oct-05

Decorative

Concrete

Products

Delivered

business,

customers

serviced primarily

by sales force

Pick up business,

customers

serviced primarily

by local branches

+ +

Large

Medium

Small

Cu

sto

mers

Concrete

Plus NZ

Feb-07

Construction

Equipment &

Decorative

Delivered

business,

customers

serviced by sales

force

+

Pick up business

from branches

+

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Creation of Parchem Construction Supplies

Parchem Construction Supplies

Construction Products

Construction Equipment

Decorative Concrete Products

Small/medium customers serviced by local branch supported by trade reps to generate

foot traffic

Large/medium customers serviced by account managers

Large

Medium

Small

Cu

sto

mers

• The businesses were

merged under the new

Parchem Construction

Supplies banner in late

2009 providing a single

source supplier to the

industry and a more

efficient operation

• The NZ business trades

under the Concrete Plus

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Platform for customer & product extension

Non core customer segments who have a requirement for the extended product

range (eg. landscapers, small builders, bricklayers, small concretors, local

waterproofers, kerbers, fencing contractors, concrete cutters, pool builders,

pavers, handyman, linemarkers, asphalters)

Parchem Construction Supplies

Core

Customer

SegmentsSmall/medium customers serviced by local branch

supported by trade reps to generate foot traffic

Large/medium customers serviced by account managers

Construction

Products

Construction

Equipment

Decorative

Concrete

Products

Ancillary products required by core customer segments

Core ProductsProduct range

extension

Customer

Segment

Extension

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Pre-Mixed Concrete – Key Market Driver

• High correlation between Australian Pre Mixed Concrete (PMC) production and

Parchem sales

• Global Financial Crisis (GFC) saw both PMC production and Parchem sales decline

• Full recovery yet to emerge

80.00%

85.00%

90.00%

95.00%

100.00%

105.00%

110.00%

115.00%

19,000

21,000

23,000

25,000

27,000

29,000

May

-08

Jul-

08

Sep

-08

No

v-0

8

Jan

-09

Mar

-09

May

-09

Jul-

09

Sep

-09

No

v-0

9

Jan

-10

Mar

-10

May

-10

Jul-

10

Sep

-10

No

v-1

0

Jan

-11

Parchem - Sales vs. PMC MAT

PMC (LHS) Sales (RHS)

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Broad product range

Construction Products

Concrete Durability

Waterproofing

Industrial Flooring

Jointing

EquipmentConcrete Placing

Equipment

Compaction Equipment

Floor Preparation

Decorative Surfaces

Driveways

Municipal Streetscape

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Construction Products

Concrete durability• Grouts

• Concrete repair

• Protection

Waterproofing• Roof decks

• Basement

• Bathroom

• Membrane

Jointing• Mechanical joints

• Sealants

• Waterstops

Industrial flooring• Cement

• Epoxy

• Self levelling

• Hygienic

• Slip resistant

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Equipment

Compaction• Civil

• Landscape

• Plumbing

Concrete Placement• Industrial

• Commercial

• Domestic

• Hand trowels

• Powered equipment

Floor preparation• Grinding

• Shot blasting

• Polishing

Pumps• Site dewatering

• Trash pumps

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Decorative Surfaces

Stamped• Driveways

• Pathways

• Commercials

Stencil• Driveways

• Traffic islands

• Pathways

Internal• Shops

• Garages

• Workshops

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Majority of business direct to user

Direct

69%

• Specification development

• Technical Sales

Trade Stores

15%

• Local related trades

• Concretors/builders

Resellers

16%

• Limited – focus on direct to customerF

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Project Restore – key elements for C&M

Leverage brands to

optimise revenue

and gross margin

Improve supply

chain (including

manufacturing)

Reduce overhead

spending

Reduce capital

employed

• Roll-out Pricing Margin Program

• Improve Delivered in Full on Time (DIFOT) levels

• Expand and revitalise product range

• Optimise distribution network

• Strengthen Sales and Operations Planning (S&OP) methodologies

• Optimise procurement processes

• Reduce quality claims (improve process and contract controls)

• Improve labour and overhead efficiency

• Optimise and flex headcount

• Manage discretionary spending tightly

• Reduce inventory through implementation of S&OP methodologies

• Continue focus on strong debtor management

• Improve returns on capital investment

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Wyong Site UpgradeF

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Wyong Site Upgrade

• Consolidated three operations into one at Parchem‟s company-

owned site at Wyong, NSW

– New warehouse built on site – ~ 7,800 sqm

• Exited two Sydney based operations (manufacturing & distribution)

• Total Cost ~$9m

• Annual benefit Return greater than cost of capital

– Lease reduction

– Freight reduction

– Headcount reduction

– Efficiency (double handling)For

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Trade Stores – new channel to marketF

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Strategic overview – the next phase

Product Expansion

• New products

• Complementary products through Trade Stores

Market Expansion

• Trade Stores

• Existing products to new customers

• New range to existing customers

Geographic Expansion

• Trade Stores

• Further New Zealand penetration

Operational Efficiency

• Supply Chain upgrade

• Structural improvements

• S&OP

• Streamline logistics

Bolt on acquisitionsFor

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Investor Presentation and Site Visit5 April 2011

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