Boral’s Financial Framework is intended to guide the group’s decision making and ensure alignment with the interests of our shareholders. The key financial objective of the Financial Framework is to achieve a Total Shareholder Return (TSR) in the top quartile of the S&P/ASX100. To achieve this, Boral is targeting an ‘earnings per share (EPS)’ growth in the top quartile of the S&P/ASX 100.

To meet these objectives, there are three core pillars to the Financial Framework:

1. Maintaining an optimal capital structure, which means having the right amount of debt for our business. The optimal net debt range of 2-2.5 times EBITDA is where Boral’s cost of capital is at its lowest.
2. Ensuring return on funds employed (ROFE) is greater than our weighted average cost of capital (WACC). Targeting ROFE greater than 10% will help us deliver ROFE >WACC throughout the cycle.
3. Being disciplined about how we allocate our capital. Maintaining an optimal capital structure and achieving ROFE > WACC will generate surplus capital. How we allocate that capital will drive our success.

This means we will:

• reinvest in the business to ensure we maintain a sustainable competitive advantage
• seek to divest assets where we do not have a sustainable competitive advantage and do not see a realistic prospect of building one, and
• return surplus capital to our shareholders in the most efficient form.

Boral completed a $3 billion return of surplus capital to shareholders on 14 February 2022 by way of a $2.65 per share capital return and 7 cents per share unfranked dividend. The return of surplus capital followed the receipt of proceeds from the sale of Boral's North American Building Products and 50% owned Meridian Brick Businesses, and Australian Building Products businesses, which combined were sold for a total consideration of more than $3 billion. Further information can be found at Return of Capital.

Boral does not currently have adequate franking credits available to pay franked dividends.

Dividend Reinvestment Plan

For information on the DRP, please read the following important documents:

ASX Announcement (10 February) - Re-activation of Dividend Reinvestment Plan (DRP)
ASX Announcement (13 February) - Letters to Shareholders - Re-activation of DRP
Boral Limited - DRP Rules
DRP - Frequently Asked Questions