1. Texas Industries, Inc.

2. “TXI’s future, like its past, will be built by the dedicated men and women of TXI …” Robert D. Rogers, former president of TXI CementAggregateConcrete

3. Stock Overview Current Price 52 Week High Low Per Share Earnings ( ttm ) Sales ( ttm ) Book Value ( mrq ) Cash Flow ( ttm ) Cash ( mrq ) Volume Avg. Daily ( in millions ) $50.63 $74.75 $42.00 $.95 $67.24 $40.81 $8.55 $11.48 9.125

4. NPV - $10,000 invested in 2000, worth $26,869 TXI has outperformed both construction manufacturing and the S&P 1500 in 4 of the last 5 years. The Sub-Industry (Steel & Iron) which TXI is a member of has outperformed the S&P 1500 and its Sector (Basic Materials) for each of the last five years Stock Performance

5. Company Revenue / Growth TXI, as the largest cement producer in the state of Texas is slated to be a major player in the rebuilding of the Gulf Coast Orange Line: Linear Trend based upon past ten years revenue has been extrapolated two periods beyond current data - TXI has experienced 101% revenue growth in ten years

6. Direct Competition TXICXPvt1VMCIndustry Market Cap:1.19B17.85BN/A7.15B848.79M Employees:4,20026,6795,400 1 8,4103.43K Qtrly Rev Growth (yoy):-51.60%N/A 20.70%51.60% Revenue (ttm):1.98B11.35B1.69B 1 2.64B1.43B Gross Margin (ttm):17.60%41.60%N/A24.14%19.43% EBITDA (ttm):334.30M2.90BN/A637.16M255.26M Oper Margins (ttm):12.03%18.96%N/A15.58%10.70% Net Income (ttm):56.97M2.24BN/A261.35M105.54M EPS (ttm):1.4406.283N/A3.4633.42 P/E (ttm):36.198.08N/A20.197.30 PEG (5 yr expected):N/A0.99N/A1.731.04 P/S (ttm):0.581.51N/A2.690.58

7. Comparison Texas Industries vs. Vulcan Materials and S&P 500

8. CAC Industry

9. Locations

10. Pros/Cons (TXI: NYSE ) Beta of 1.25 which is flirting with our portfolio’s standard Inconsistent growth over the past five years Fair value cost at $39.90, so the stock is way overvalued United States cement industry is favorably structured Texas and California are attractive cement markets TXI is the largest cement supplier in Texas, and a low cost producer TXI’s management team has decades of industry experience Most of the reconstructing performed by TXI in the Gulf Coast region

11. Recommendation HOLD Questions?