EX-99.1 2 dex991.htm INVESTOR PRESENTATION Investor Presentation
Longbow Research
Construction Materials Conference
February 19, 2009
Exhibit 99.1

Forward Looking Statement
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may be identified by the context of the
statement
and
generally
arise
when
the
Company
is
discussing
its
beliefs,
estimates
or
expectations.
These
statements
are
not
historical
facts
or
guarantees of future performance but instead represent only the Company’s beliefs at the time the statements were made regarding future events which
are subject to significant risks, uncertainties and other factors many of which are outside the Company’s control.  Actual results and outcomes may differ
materially from what is expressed or forecast in such forward-looking statements.  The principal risks and uncertainties that may affect the Company’s
actual performance include the following: the cyclical and seasonal nature of the Company’s business; public infrastructure expenditures; adverse
weather conditions; restrictive covenants contained in our debt agreements; availability of raw materials; changes in energy costs including, without
limitation, increases in natural gas and oil; changes in the cost and availability of transportation; unexpected operational difficulties, equipment failures
and catastrophic events; inability to timely execute announced capacity expansions; governmental regulation and changes in governmental and public
policy (including climate change regulation); changes in economic conditions specific to any one or more of the Company’s markets; competition;
announced increases in capacity in the gypsum wallboard and cement industries; changes in demand for residential housing construction or commercial
construction; environmental liabilities; general economic conditions (including the possibility of the deepening of the current economic recession); and
interest rates.  For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including
natural gas and oil) could affect the revenues and operating earnings of our operations.  In addition, changes in national and regional economic
conditions and levels of infrastructure and construction spending could also adversely affect the Company’s results of operations.  These and other
factors are described in the Annual Report on Form 10-K for the Company for the fiscal year ended March 31, 2008 and in its quarterly report on Form
10-Q for the fiscal quarter ended December 31, 2008.  These reports
are filed with the Securities and Exchange Commission and may be obtained free
of charge through the website maintained by the SEC at www.sec.gov.  All forward-looking statements made in this presentation are made as of the date
hereof, and the risk that actual results will differ materially from expectations expressed in this presentation will increase with the passage of time.  The
Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company’s expectations.

3
1.
Current Business Environment
2.
Industry Outlook
3.
Eagle at a Glance

4
New residential construction continues to weaken
Non-residential construction’s near term outlook is weak
Public construction varies from state to state
Eagle Materials’
Response
Intense focus on quality and customer service
Minimize capital spending but maintain plants in like new condition
Reduce/Eliminate low margin purchased cement sales
Minimize waste and delay at our wallboard plants
Minimize outside contract maintenance and overtime
Find and implement lower cost energy and raw materials sources
Improve financial flexibility by purchasing fixed-rate senior notes and replacing with variable-
rate revolving credit facility
Current Business Environment

5
1.
Current Business Environment
2.
Industry Outlook
3.
Eagle at a Glance

6

7
U.S. Cement Industry Update
Current Supply/Demand Dynamics
Demand anticipated to decline approximately 15% in calendar
2009
Due to the decline in demand, several plant closures have been
announced
Announced delays of expansion projects
Landed cost of imported cement has been dramatically reduced
Imports of foreign cement have been dramatically reduced

Cost of imported cement (through September 2008)
Source: Portland Cement Association; Company estimates
Current landed price –
Mid-$50’s/ton
8
Asian Financial Crisis
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Landed price of Asian imports to U.S.
Handymax
-
Southeast Asia to U.S. Gulf
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100

9
Source: PCA Data and Company estimates
U.S. Cement Industry –
Consumption
30%
imports
7%
imports
0
20
40
60
80
100
120
140
160
Calendar Year
Imports

10
Public Construction
Spending –
Value Put in Place
Source:  Portland Cement Association (Projection from Fall 2008).
?
$50
$100
$150
$200
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009E

11
Architectural Billings Index (ABI)
Source: American Institute of Architects
As a leading economic indicator of construction activity, the ABI
reflects the approximate nine to twelve month lag between
architectural billings and construction spending.  Any score above 50
indicates an increase in billings. 
20
30
40
50
60
70
80
Commercial/Industrial
Institutional
Mixed Use

12
Private Non-Residential
Construction Spending –
Value Put in Place
$0
$50
$100
$150
$200
$250
$300
$350
Source: U.S. Bureau of the Census; PCA (Projection from Fall 2008)
-23%

13
Wind Farms

14
Wind Farms

15
Our Cement Operations
Eagle Operations Overview
Approximately 3.1 million tons of capacity
3.1% market share (12th in North America)
Low cost producer
Exceptional quality and customer service
Cement Plants
Cement Terminals
Markets Served

16

17
Wallboard Industry Update
Wallboard demand was approximately 25 billion square feet (BSF) in calendar
2008 (down 31% from the 2005 peak)
We expect demand to decline nearly 20% in calendar 2009
New plant capacity increases are operational
All new plants were built in the East
Older plants are closing
Wallboard production capacity currently significantly greater than wallboard
demand causing very low industry capacity utilization
Industry
capacity
utilization
no
longer
proxy
for
pricing
–
too
low
Wallboard margins were the lowest in the industry’s 100-year history last
summer
Pricing has since rebounded approximately 20%

18
Residential Construction
Near Term Outlook
Extreme low pace of new home construction
Overhang of existing homes and foreclosures continues to put downward pressure
on pricing and new housing starts
Access to 30-year fixed-rate traditional mortgages is limited; however, interest
rates are at historical lows
Unemployment on the rise
Additional foreclosures still loom as a risk to add to inventory
•
ARM resets
Home prices continue to decline in bubble markets
•
Very depressed in outlying metropolitan bubble markets
Bottom Line –
Residential real estate has not yet bottomed
However, demand drivers are mixed bag of positives and negatives

19
U.S
Single
Family
Housing
Starts
–
1972-2008
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Source: U.S Bureau of the Census; Eagle estimates
Wallboard consumption by type of construction:
-Single Family –
approx. 10,000 sf
-Multi
Family
–
approx.
4,000
sf

20
Home Supply –
1972 -
2008
Source: U.S Bureau of the Census
0
2
4
6
8
10
12
14
0
100
200
300
400
500
600
700
Months Supply of New Unsold Homes (L)
Actual Inventory of New Unsold Homes

21
Home Ownership Rates –
1972 –
2008
Source: U.S. Bureau of the Census
Total occupied homes
111.8 million
Owner occupied
75.5 million
Renter occupied
36.3 million
60.00%
65.00%
70.00%
Home Ownership Rates
Total occupied homes
111.8 million
Owner occupied
75.5 million
Renter occupied
36.3 million

22
Ratio of Median Existing Single Family Home Price
to Median Income –
1975-2008
Source: National Association of Realtors
Average Ratio –
2.9
Ratio in December  -
2.9
3.6
3.9
3.9
3.7
3.3
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5

23
30
Year
Mortgage
Rates
–
1977
–
2009
(January)
Source: Freddie Mac
Record low

24
Unemployment
Rate
–
1977
–
2009
(January)
Source: Department of Labor
Current Month

25
New Home
OR                 Existing Home? 

26
U.S. Demand for Gypsum Wallboard (BSF)
Source:  Gypsum Association; Eagle estimates
10.7
13.1
15.4
16.4
16.7
14.1
13.8
13.1
16.8
18.3
19.4
20.4
20.6
20.6
20.9
20.5
18.3
20.2
21.4
23.2
23.1
24.7
25.5
27.0
29.1
28.2
29.3
29.8
31.8
34.0
36.2
35.0
30.2
24.8
20.0
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0

27
Estimated Capacity

28
Wallboard Industry Capacity Expansions/Closures
INDUSTRY CAPACITY ADDITIONS
CAPACITY CLOSURES
EAGLE PLANTS
Capacity Summary
(in BSF)
1/1/07
37.9
Additions
5.7
Closures
(7.1)
Current
36.5

29
Eagle’s Wallboard Operations
American Gypsum Operations Overview
18-year history
Nearly 4.0 billion square feet of capacity
10% market share (5th in U.S.)
Lowest cost producer
Exceptional customer service
Premium quality
Wallboard Plants
Reload/Distribution Yards
Core Markets Served

30

31
Gypsum Paperboard Industry Update
Nearly 100% vertically integrated
One notable exception –
CertainTeed –
•
40% of Republic Paperboard’s capacity supplies 65% of
CertainTeed’s U.S. paper needs
Wallboard industry’s paperboard capacity is mostly high cost cylinder
machines that produce high basis weight gypsum facing paper
OCC costs are trending down
Energy costs are trending down

32
Eagle’s Gypsum Paperboard Overview
Original design capacity of 220,000 tons has been
increased to 320,000 tons
Republic produces light-weight gypsum paperboard
15% lighter than gypsum industry average
Superior wallboard conversion characteristics
Produces uniform cross-directional strength, weight
and moisture profile
40% of capacity consumed internally, 30% sold through
long-term sales contract with CertainTeed, 30% sold in
spot linerboard market

33

34
Eagle’s Operations Overview
Strong competitive position in                   
local markets
Capacity
•
Aggregates
–
5.5
million
tons
•
Concrete
–
850,000
cubic
yards
Complimentary to Eagle’s Cement     
business
Organic growth opportunities
Vast aggregates reserves of over                    
1 billion tons in Northern California
Exceptional quality and customer service
Our Concrete and Aggregates Operations

35
1.
Current Business Environment
2.
Industry Outlook
3.
Eagle at a Glance

36
New residential construction continues to weaken
Non-residential construction’s near term outlook is weak
Public construction varies from state to state
Eagle Materials’
Response
Intense focus on quality and customer service
Minimize capital spending but maintain plants in like new condition
Reduce/Eliminate low margin purchased cement sales
Minimize waste and delay at our wallboard plants
Minimize outside contract maintenance and overtime
Find and implement lower cost energy and raw materials sources
Improve financial flexibility by purchasing fixed-rate senior notes and replacing with variable-
rate revolving credit facility
Current Business Environment

37
Construction Demand Drivers
•
Public Infrastructure
•
New Residential Construction
•
New Non-Residential Construction
•
Repair and Remodel Construction
Public
Infrastructure
, 58%
New Non-
Residential,
18%
New
Residential,
17%
Other, 6%
American Gypsum’s
Wallboard
Eagle’s                    
Cement
New
Residential,
37%
Repair and
Remodel, 36%
Other, 1%
New Non-
Residential,
26%

38
Our Cement Production and Cost
Total Manufactured Tons Produced (L)
Manufactured Cost per Equivalent Ton (R)
* -
Includes effect of downtime for Illinois Cement start-up
Energy costs up 50%
Since FY04

39
American Gypsum’s Wallboard Production and
Cost
* Before SG&A
** Includes effect from start-up of new plant in Georgetown, South Carolina

40
Financial Highlights
($ in millions)
$429
$503
$617
$860
$922
$750
$610
$0
$200
$400
$600
$800
$1,000
$1,200
2003
2004
2005
2006
2007
2008
2009E
For Fiscal Year Ending March 31
* Before Corporate G&A
Revenues
Operating Earnings *
$102
$115
$172
$264
$330
$184
$105
$0
$100
$200
$300
$400
2003
2004
2005
2006
2007
2008
2009E

41
Dec. 31,
2008
Purchase
of Senior
Notes
After Note
Purchase
Senior Notes
$       400.0
$  (100.0)
$      300.0
Revolver
-
95.0
95.0
Total Debt
$      400.0
$        (5.0)
$      395.0
Cash Balance
$        47.8
$        47.8
Quarterly Interest on Debt
$          5.9
$          4.9
Senior Notes
Revolver
-
No maturities until 2012
-
Committed through June 2011
-
Wtd
average life –
7.7 years
-
Current rate -
LIBOR plus 125 bps
-
Avg. Interest rate –
5.7%
-
Approximately $250 million remains
available after note purchase
Senior Note Purchase
($ in millions)

42
We Continue to Outperform the Group *
-4.1%
3.1%
6.3%
11.2%
13.7%
15.2%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
USG
Cemex
TXI (1)
Vulcan
Eagle
Martin Marietta
EBIT Margins (TTM as of 12/31/08)
•
Based on comparison of EBIT Margins (TTM) for each of the listed
companies
(1)
TTM as of 11/30/08
Mean: 9%

43
Why Eagle Materials likes its position in bad times
and in good times
Premium quality products
Exceptional customer service
Strong long-term customer relationships
Low overhead
Extremely efficient modern, low-cost manufacturing plants
Smart, hard working, technologically proficient employees
Solid balance sheet
Strong cash flow from low-cost operations during difficult times

44
Eagle Materials Inc.
Question
&
Answer

Longbow Research
Construction Materials Conference
February 19, 2009

46
Contact Information
Steve Rowley, President and CEO
Telephone:  214-432-2020
Email:  srowley@eaglematerials.com
Mark Dendle, Executive Vice President and CFO
Telephone:  214-432-2011
Email:  mdendle@eaglematerials.com
Craig Kesler, Vice President -
Investor Relations and Corporate Development
Telephone:  214-432-2013
Email:  ckesler@eaglematerials.com
Eagle Materials Inc.                               NYSE:  EXP  
www.eaglematerials.com