Slide 1: Forsyth Barr Presentation
FLETCHER BUILDING For personal use only FORSYTH BARR PRESENTATION 19 October 2011 Jonathan Ling Chief Executive Officer
Slide 2: Disclaimer
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 2 Disclaimer For personal use only This presentation contains not only a review of operations, but also some forward looking statements about Fletcher Building and the environment in which the company operates. Because these state
Slide 3: Fletcher Building at a glance
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 3 Fletcher Building at a glance For personal use only 2001 2011 Revenue (NZ$billion) 2.3 7.4 Operating Profit 94 596 (EBIT NZ$million) Market Capitalisation (NZ$billion) 0.78 4.5 Employees 7,000 >20,000
Slide 4: Fletcher Building at a glance
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 4 Fletcher Building at a glance For personal use only 2001 2011 Market Ranking: -NZX 17 2 -ASX 58 Share Price $2.26 $6.70 Total Shareholder Return 484%* * Based on period from 26 March 2011 to 30 June 2011
Slide 5: Safety performance
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 5 Safety performance For personal use only Total recorded injury frequency rate 70 60 50 Number 40 30 20 10 0 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11
Slide 6: Fletcher Building then and now
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 6 Fletcher Building then and now For personal use only Revenue 2001: Revenue 2011:* 1% 12% 14% 47% New Zealand New Zealand Australia Australia 39% Rest of World Rest of World 87% * Pro-forma combined Fletcher Building and Crane Gr
Slide 7: Fletcher Building shareholder base
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 7 Fletcher Building shareholder base For personal use only 5% 6% 18% 38% New Zealand Australia North America Europe Asia 33%
Slide 8: Market leading businesses
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 8 Market leading businesses For personal use only Building Laminates Crane Distribution Infrastructure Steel Products & Panels Plasterboard Pipelines – Building Materials Construction The Laminex Coated Steel Insulation Manufactur
Slide 9: Strategic objectives
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 9 Strategic objectives For personal use only • Grow our Australian and New Zealand building products and construction materials positions • Develop Laminex and Formica into the World’s leading laminates and panels business • Maint
Slide 10: The Fletcher Building way
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 10 The Fletcher Building way For personal use only • Decentralised organisation structure. Maximum autonomy and accountability with Business Unit General Manager. • Small corporate office. • Improve or eliminate underperforming bu
Slide 11: Fletcher Building acquisition criteria
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 11 Fletcher Building acquisition criteria For personal use only • No. 1 or 2 market position • Attractive industry structure • Capable management available • Attractive financial returns
Slide 12: Successful diversification has driven out-performance
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 12 Successful diversification has driven out-performance For personal use only Formica 500 Fletcher Building Share Price NZX50 Index ASX200 Industrials Index Crane 400 Amatek Global Financial Index Crisis 300 Tasman Laminex 200 10
Slide 13: Overview of Crane's businesses
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 13 Overview of Crane’s businesses For personal use only Crane Division (FY10 in A$m, to nearest million) Aust. NZ Key Brands Pipelines Manufacturer and distributor of pipes and fittings from 15mm to 2,000mm in diameter with 20 man
Slide 14: Canterbury earthquake rebuilding
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 14 Canterbury earthquake rebuilding For personal use only • Another major earthquake of magnitude 5.5 occurred on Sunday 9 October • Government has confirmed that this will further delay rebuilding • Non-availability of insurance
Slide 15: Trading update – October 2011
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 15 Trading update – 12 October 2011 For personal use only New Zealand • Continued low levels of activity in the residential and commercial construction sectors; − Recent modest uplift in residential consents has yet to flow throug
Slide 16: New Zealand residential consents at historically low levels
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 16 New Zealand residential consents in March and June quarters were at historically low levels For personal use only Housing consents 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Dec-09 Dec-07 Dec-08 Dec-10 Mar-08 Mar-09 Sep-08 Sep
Slide 17: Australian residential consents have slowed considerably
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 17 Australian residential consents have slowed considerably in the last two quarters For personal use only Total Dwellings (incl conv) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Dec-09 Dec-07 Dec-08 Mar
Slide 18: Finance approvals for additions and alterations trending down
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 18 Finance approvals for additions and alterations in Australia have been trending down For personal use only Additions & Alterations loans 550,000 500,000 450,000 400,000 350,000 Oct 08 Oct 09 Jul 10 Jan 10 Jan 11 Apr 09 Jan 09 J
Slide 19: Financial outlook FY2012
Forsyth Barr Presentation | Fletcher Building | © October 2011 | Page 19 Financial outlook FY2012 For personal use only Based on: − Current assessment of market conditions, and − Unaudited internal forecasts: Net earnings for the 2012 half year are expected to be around 10% lower than the 2011 resul
Slide 20: Forsyth Barr Presentation
FLETCHER BUILDING For personal use only FORSYTH BARR PRESENTATION 19 October 2011 Jonathan Ling Chief Executive Officer