Expansion into the Bimini Islands, Bahamas

1. Expansion into the Bimini Islands, Bahamas

2. Presentation Agenda • Company Profile • Industry Overview • Product Overview • Bahamas Expansion • Mode of Entry • Finance • Market Strategy • Recommendations • Summary

3. Company Profile If you've visited Walt Disney World, flown into the Miami International Airport, or driven the roadways of Florida, then you've already experienced a little bit of what Rinker Materials Corporation is all about. If you live or work in Florida chances are that your house and office contain our building materials and we're already part of your everyday life.

4. Industry Overview The most important aspect of the construction aggregate industry is finding the natural resources, but: • Natural Resources are getting harder to find in Florida, • Aggregate Mines are getting harder to locate and permit, • Demand for product is increasing, • Product must be imported.

5. Industry Overview Three modes of material transport: • Truck, • Train, • Ship,

6. Product Overview The building blocks of buildings are found and made from: • Crushed Stone – mined in Miami, West Coast and North Florida, • Sand – mined in center of Florida Peninsula, and • Cement is produced from limestone in mills in Miami, Brooksville, and the Gainesville area.

7. Bimini Islands, Bahamas

10. Bahamas Expansion A potential aggregate source has been found near the Bimini Islands, Bahamas • High quality limestone, • Construction grade sand, • 80 Miles east of Miami, • Easy access to Florida Ports by barge, • Potential area has low labor costs, and • Easy to permit and construct.

11. Finance Rinker’s expansion into the Bahamas is expected to costs just under $15 million.

12. Operating Cost Advantages of locating in the Bahamas: • Low labor cost abundant and available, • Low transportation costs (via barge), • Minimal material handling costs, and • Low environmental impacts and costs.

13. Mode of Entry Rinker is an international business with headquarters in Sydney, Australia. Operations in; • Australia • Southeast Asia, • China, • United States, and • Soon… Bahamas

14. Mode of Entry Rinker already imports/exports raw materials from/to: • Brazil, • China, • Caribbean, and • Soon… Bahamas

15. Market Strategy The fundamental tenet of Rinker’s strategy is to maintain a selected share of the ready-mix concrete and concrete block market at the highest possible price in order to maximize production in the company’s quarries, sand mines, and cement mills.

16. Risks Risks involved in the expansion near the Bimini Islands, Bahamas • 3 years before any production, • Potential of severe weather-hurricanes, • Higher maintenance costs from the saltwater environment • Must generate required power-diesel and generators, • Resources in Cuba could present future competition.

17. INFLICTED DAMAGE, PRE-EXISTING COMPETITION, HURRICANES, SALT DAMAGE, SABOTAGE, FIRE, SMOKE… …AND DAMAGE RESULTING FROM SINGING FLYING FISH. RISK Risks If we do not challenge ourselves to take some risks, we are doomed to fail to the innovators of tomorrow!

18. Recommendations Rinker needs to pursue the Bahamas endeavor to: • Ensure supply of aggregate, • Lower future production costs, • Increase profit margins, • Increase market share, and • Maintain Rinker’s longstanding dominance in Florida’s concrete industry.

19. Summary • Florida’s Population will grow over 50% in 30 years. • Domestic Aggregate Reserves cannot fulfill current need. • Current Domestic Resources will be exhausted in 30 years. • Aggregate imports will continue to increase.

20. Summary Bimini Island mine location will: • Increase available reserves, • Enjoy lower labor, production and transportation costs, • Serve major Florida markets with low cost aggregate, and • Enable Rinker to maintain it’s market leadership.

21. Questions?Comments?