Fletcher Building Limited · NZX:FBU
Fletcher Building — Merger or Acquisition (March 2005)
27 slides from Fletcher Building's merger presentation, Mar 2, 2005
Slide 1: Acquisition of Amatek Holdings Limited
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Y Fletcher! Acquisition of Amatek Holdings Limited 2 March 2005 This presentation has been prepared for investors in New Zealand and Australia and may not be released in the United States. This presentation does not constitute a
Slide 2: Disclaimer
Disclair The information in this presentation is an overview and does not contain all information necessary to an investment decision. It is intended to constitute a summary of certain information relating to: O the acquisition by Fletcher Building Limited (“FBU”) of Amatek Holdings Limited (“Amatek
Slide 3: Forward looking statements
Forward looking state Certain statements contained in this presentation may constitute “forward looking statements” or statements about “future matters” for the purposes of section 728(2) of the Corporations Act 2001 (Cth) and/or “forward-looking statements” within the meaning of the US. Private Sec
Slide 4: Agenda
Agenda Q Transaction overview Q Overview of Amatek Q Rationale for acquisition Q Financial impact Q Acquisition financing a Summary Wy LLL LLL LLL MAE on 7 Ve yy ay a 8. . 28€=§=—tlt._tiiéWOU”tOCOitiazCi‘CONOi i‘aCO’NUCOCiCC “7 iy eG, ne cauee con : ay ck 7 y “Fletche y ye a
Slide 5: Transaction overview
Transaction overview a Fletcher Building Limited has acquired Amatek Holdings Limited (“Amatek”) a Amatek comprises four businesses operating in Australia: = Rocla Pipeline Products (steel reinforced concrete pipe and precast products) =m Rocla Quarry Products (sand quarries) a Stramit (steel roofin
Slide 6: Overview of Amatek
Root Pipeline Prodacts Designs, nanufactures and distributes lange oO steel reinforced concrete pipes anc other concrete products (inclucing poles, Talay sleepers, box culverts, slormwater access systems and bridge components) Strong brandname supported by 17 pipes branches Australia-wide, of which
Slide 7: Overview of Amatek (continued)
Overview of A atek (continued) Revenue Contribution by Business (2004A) EBITDA Contribution by Business (2004A) Insulation Solutions 12% Rocla Building Products ; Infrastructure Pipelines 46% 54% 21% a Vy 7 y Ly a on A | > ay Ly Ll . _ a 7 ye a a oy 7 .. Le Cl” _ Le = sy | iy Ve, 7 _. | . Cy _ yy .
Slide 8: Overview of Amatek (continued)
verview of A atek (continued) Revenue Contribution by State (2004A) Estimated Revenue by Sector (2005E) 3 _ _ yy 7 7 | _ 7 . Ye ip. LD _ _ f 7 , Yay Non-residential - Residential A&A 30% 18% yyy CC a yo) Lo a a Lo a a Lo a >...
Slide 9: Consistent with our acquisition criteria
a Consistent with our acquisition criteriz NA a: Ley Le, SOIL iy | | _ a 2 - 7 a oo 7 7 BOK 7 ig market p _. /) Os ype a wy i Line D EE 7 Wy yO yy 7 iy 7 . Lo - ) ae yy a ee nope Dy LD Ly yy Wy, yy ey y _ LL LE yy oe a i ao cs | oO / Le ac he Bu td hing: oo a - p cn ae ) L yyy ey Ly peony =—7 > yy |
Slide 10: Amatek's complementary businesses
10 matek’s complementary businesses _ a Le oe a fraste “i He ae et Loe ON Go EGATES EO PR oe | Quarry Preducts | PINK BATTS ed XN ee Rocks | Pipeline Products | Products: stresscrete | 4 ey 0 ree So . i a c 7 ~)h—hCOCrtrFe#EENCN”NNNENN.UUBNN.U#ETENNCCN9K’N.,— »5$':-:— =FT'?'. as y i Ty cauee do, yp
Slide 11: Strong market positions
strong market positions Aocila¥ 100% 35% Concrete Spun pipes concrete poles * One of two national concrete pipe suppliers {some regional players) = Major manufacturer of pre- cast concrete products Source: Management estimates Ane foci | Quarry Pra ducts | | Quarry Pra ducts | ducts 80% NSw WA SA =
Slide 12: Experienced management
Experienced oe Pir a = a) ie @ He beg ay a Ly OG , 4 7 j an . iy ig 7 i y We EG, © gy 12 "5 ey kk a Le 7. Me wy LL Ly) lA on oe hi = General Manager, Stephen Baker 24 years with RPP * Finance & Accounting Manager, Jim Curtis 22 years with RPP = General Manager, . Geoff West 12 years with RQP « Finan
Slide 13: Strong track record of earnings growth expected to continue
13 Strong track record of earnings growth expected to continue Amatek Years ended 30 June A$m 2003' 2004" 2005(E)? External sales 659 743 808 EBITDA 3 60 77 86 EBITA 41 59 64 Notes: 1. Combined normalised results for Rocla Pipeline Products, Rocla Quarry Products, Stramit and insulation Solutions as
Slide 14: Estimated synergies and growth opportunities
we < <stimated opportunities g ye a yy a ey =. A remo ’ a gies LLL Le eo UE, QO Total synergies estimated at Q A$10m p.a. ~ A$4m p.a. immediately from corporate cost savings ~ Further A$6m p.a. expected to be oO realised from year 2 Q Key areas include: ~ Immediate corporate cost saving ~ Insulation
Slide 15: More balanced NZ/Australia revenue profile
y Nore balanced NZ/Australia revenue profile Combined FBU / Amatek FBU Revenue - FY2004" Revenue — Pro Forma FY2004: Other Other 4% 4% Australia Tl 25% a FGATTATTAAATTA Australia ey HTL 35% eee = ili Tt ld ooo New ae Zealand | 61% New Zealand 71% 4. Annualised for full year of Tasman Building Produc
Slide 16: Total acquisition cost
16 OO 3 io) @. S a ° $Am $NZm ‘ Fixed Assets 242 266 Net Working Capital 76 84 Goodwill and Intangibles 2 158 172 Deferred Tax Asset 60 66 investments 4 5 Total Acquisition Cost’ 540 593 Notes: 1 Assumed exchange rate AS0.91 2. Includes transaction costs (stamp duty, fees and expenses) of approximat
Slide 17: Metrics
17 etrics 2005 2005 A$m Estimate Adjusted * Purchase Price 2 530 470 Amatek EBITDA? 86 86 EV / EBITDA multiple (pre synergies) 6.2x 5.5x EV / EBITDA multiple (post synergies) ¢ 5.5x 4.9x Notes: 1 Adjusted to exclude future tax benefits acquired (at the estimated discounted cash value} that do not co
Slide 18: Appropriate financing mix
18 Appropriate financing mi Acquisition Funding : Effect on FBU Capital Structure =NZ$458m Debt Debt NZ$774m 38.7% =NZ$1,232m 47.5% Acquisition NZ$593m ? Pre transaction Post transaction (A$530m +A$10m transaction costs) (FBU 31-Dec-04) (FBU 31-Dec-04 + Amatek) Notes: 1. Assumes underwritten placeme
Slide 19: Building on successful acquisition track record
19 Building on successful acquisition track record Two key acquisitions - Laminex and Tasman Building Products Both integrated successfully Earnings from these acquisitions have exceeded expectations O oO CO O These acquisitions have realised synergies of $10 million in FY04, and $15 million expecte
Slide 20: Equity Capital Raising Indicative Timetable
Equity Capital Raising Indicative Timetable « Wednesday 2 March - 10.00am FBU remains suspended on NZX and ASX —- 2.00pm Bookbuild commences — 8.00pm Initial book close * Thursday 3 March — 7.00am Final book close —- 9.45am Allocations finalised — 10.00am FBU trading recommences — By4.00pm_ Return o
Slide 21: yy Ly iy _ vy oy yy , Ly LO pe si i,
21 yy Ly 7 iy _ vy 7 7 oy 7 7 yy , Ly LO pe si i, Dy 7) Ly y i y ) yy ae yy ay 7 “ ora ilo , Ar ne siti ion J) i) ee a Suu iy) . J Le yy V7 , WG WM yy 7 7 i ey yy ee Uy a iy Ve La i ie es yy L ve I: Ly Wa. Wy yy ye ye ey ae a Ly ay, yy Se) , OLLIE REE IEEE SEES I i 7 a Le. 7 7 7 7 DF 7 aC y _ a a om
Slide 22: Yay _ yy Wa Lo i Wy yo DO we ye iy yy
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Slide 23: Overview of Amatek
23 Overview of Amatek | Boule ipeine . bogs a Weuinen Produe Roda Quamy Products Stramit Soidtone ait “i eC : Ee TN . «Designs, manufactures «Extracts and processes «Leading manufacturer of « One of Australia’s i and distributes a range both sand for concrete steel building products, leading manufac
Slide 24: Pipe manufacturing and sales sites
24 Pipe manufacturing.and sales sites Pipe sales offices 17 sites Sleepers 2 sites (1.active) wy y) Le Y unum aoe Lg CCC‘ oy i yD ae “i Laie Aue oO a y _Fletche yy us Lo LLL LLL LLL Nt Mey) ay
Slide 25: Rocla Quarry Products sites
a ocla Quarry Products sites BRISBANE crore oo st paren a PERTHe c sew Seuh Wales L oe . ne |g! sone Western Australia South Australia Sites 6 Sites Glass sand plant Victoria Sites 4 Quarry & drying plant woe oy We aaa Wy a Hg a —=———rti‘“—OCCrC———,.—DC”T”T..CSCSK C.z. a nae 7 Wy va Gy, Ly iy a uae
Slide 26: Stramit sites
4 LD 26 O tes 29 sites comprising - ‘25. manufacturing a 2warehouse at 4 engineering aw 4 administration Caims «Rockhampton ladstone Maryborough . nN . ae yp ey, LLL LL LLL LL MRA a, 7 VA | .»»=)E—OEOCOTrt—“—C—UTUTUUCDUCOC ?WVD7T"”—C—C—O*O*#N“NNNRNNCS§WNS’:CC iss i Vy Fletch ch . JB
Slide 27: Insulation Solutions sites
27 ions sites nsulation Solut Homebush Laminates plant i Manufactures foil insulation and ..j laminates & coatings Dandenong Glasswool facility Braeside | Dandenong Head office & State or regional officefwarehouse aie Monulzcateg site , vay MLEOLLOLELIOLOL OLD LL Le oo 7 me uy _ Fletene cae Z; canin
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