soft downgrade ex sugar

Turning to the outlook for this year, all east coast markets remain weak with the NSW market in
particular being even weaker than we expected a few months ago.

When we released our results for the year ending March 2006 back in May, we said that if sugar
prices remained strong, we expected to achieve overall earnings before interest and tax for the
group around 10% above last year, excluding one-off items. As discussed earlier a number of
things have changed since that time, particularly the level of weakness in some building products
markets. However as long as sugar prices remain reasonably strong, we see no reason to
change our guidance.