Fletcher Building Limited · NZX:FBU
Fletcher Building — Macquarie Australia Conference 2011
42 slides from Fletcher Building's conference presentation, May 6, 2011
Slide 1: Presentation to Macquarie Australia Conference
1 For personal use only Presentation to Macquarie Australia Conference May 2011 Bill Roest Chief Financial Officer Investor Presentation| Fletcher Building | © May 2011
Slide 2: Disclaimer
2 For personal use only Disclaimer 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 statements are forward looking, Fletcher Building Building’ss actual result
Slide 3: Agenda
3 For personal use only Agenda • Company and Market Overview • Strategy • Financial Results • Update on Key Developments • Outlook • Appendix: −Additional information Investor Presentation| Fletcher Building | © May 2011
Slide 4: Company and Market Overview
4 For personal use only Company and Market Overview Investor Presentation| Fletcher Building | © May 2011
Slide 5: Fletcher Building at a glance
5 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook| Appendix Fletcher Building at a glance For personal use only • Revenue - year to 30 June 2010: NZ$9.8 million¹ • Market Capitalisation NZ$6.2 billion • Employees: 20,000 • Shareholders: (as at 31 Dec 2010) Reven
Slide 6: Fletcher Building – Key listing information
6 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook| Appendix Fletcher Building – Key listing information For personal use only • Listed on the New Zealand and Australian stock exchanges g New Zealand • Largest listed company by market capitalisation on the NZX Au
Slide 7: Market leading businesses
7 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook| Appendix Market leading businesses For personal use only Building Laminates Distribution Infrastructure Steel Crane Products & Panels Pipelines – Plasterboard Building Materials Construction The Laminex Coated S
Slide 8: Strategy
8 For personal use only Strategy Investor Presentation| Fletcher Building | © May 2011
Slide 9: Longer term strategy
9 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Strategy Longer term strategy continues to be: • improve earnings reliability • maintain and improve internal capabilities - increased i d focus f on growth h oriented i d capex -
Slide 10: Fletcher Building has a vertically integrated value chain
10 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Fletcher Building has a vertically integrated value chain For personal use only Laminates Building Other Steel Concrete Manufacturers & Panels Products Dedicated Shared Other Construction Distribution
Slide 11: Financial Results
11 For personal use only Financial Results Investor Presentation| Fletcher Building | © May 2011
Slide 12: Half Year 2011 results summary
12 Company & Market Overview | Strategy | Financial Results | Key Developments| Outlook | Appendix For personal use only Half Year 2011 results summary Dec 2010 Dec 2009 NZ$m 6 months 6 months % Change Sales 3,468 3,393 +2 EBITDA 381 372 +2 EBIT 285 271 +5 Net earnings 166 154 +8 EPS – cps 27.3 25.5
Slide 13: Half year earnings ahead in all divisions except Building Products
13 Company & Market Overview | Strategy | Financial Results | Key Developments| Outlook | Appendix For personal use only Half year earnings ahead in all divisions except Building Products EBIT NZ$million1 1. Earnings before interest and tax Investor Presentation| Fletcher Building | © May 2011
Slide 14: Net debt levels increased with investment in Crane Group
14 Company & Market Overview | Strategy | Financial Results | Key Developments| Outlook | Appendix For personal use only Net debt levels increased with investment in Crane Group 1800 1500 92 9 1 141 150 1200 78 (32) 900 (7) 600 1,259 1,107 (280) 300 0 up Shares Dividends Working capital Divvestments
Slide 15: Key Ratios
15 Company & Market Overview | Strategy | Financial Results | Key Developments| Outlook | Appendix For personal use only Key Ratios Total T t l Sh Shareholder h ld R Return t (TSR) D bt/D bt Plus Debt/Debt Pl Equity E it Percentage Percentage Jun-06 Jun-07 Jun-09 Jun-10 Dec-10 Return on Average Equi
Slide 16: Capital expenditure – focus shifting to growth-orientated initiatives
16 Company & Market Overview | Strategy | Financial Results | Key Developments| Outlook | Appendix For personal use only Capital expenditure – focus shifting to growth‐orientated initiatives Capital Expenditure versus • Stay-in-business capex approx Depreciation NZ$M 350 60% of depreciation. p 322 ¹
Slide 17: Update on Key Developments
17 For personal use only Update on Key Developments Investor Presentation| Fletcher Building | © May 2011
Slide 18: Overview of Crane's businesses
18 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Overview of Crane’s businesses For personal use only Crane Division (FY10 in A$m, to nearest million) Aust. NZ Revenue EBIT1 Key Brands Pi li Pipelines Manufacturer and distributor of pipes and fittin
Slide 19: Divisional structure of the Combined Group
19 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Divisional structure of the Combined Group For personal use only Crane will form a new division within the Combined Group, with its complementary businesses representing strategic extensions of existi
Slide 20: Summary of transaction metrics
20 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Summary of transaction metrics For personal use only • Total implied value received by Crane Metrics A$ shareholders of A$10.071 represented an Total Implied Value per share $10.07 enterprise value fo
Slide 21: Canterbury earthquake update
21 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Canterbury earthquake update For personal use only • Estimates of total cost to rebuild Canterburyy region g and Christchurch Cityy are $15-$20 billion • Fletcher Construction was selected to undertak
Slide 22: Watertightness – fixing leaky homes
22 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Watertightness – fixing “leaky homes” For personal use only • PWC report p to g government of March 2010 estimated 22,000 , to 89,000 dwellings affected • Consensus forecast is 42,000 dwellings requir
Slide 23: NZ Infrastructure outlook expected to be boosted by Christchurch earthquake rehabilitation
23 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix NZ Infrastructure outlook expected to be boosted by Christchurch For personal use only earthquake rehabilitation National Infrastructure Plan: CY10 to CY16 NZ$M Source: National Infrastructure Plan Ma
Slide 24: Fletcher Building Tax Crediting Policy on Dividends
24 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix Fletcher Building Tax Crediting Policy on Dividends For personal use only • Fletcher Building announced on 9 February 2011 a new tax crediting policy for its dividends whereby: − all interim dividends
Slide 25: Outlook
25 For personal use only Outlook Investor Presentation| Fletcher Building | © May 2011
Slide 26: Outlook 2011
26 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Outlook 2011 Outlook for 2011 financial year continues to be mixed as to the pace of economic recovery, and the impact of the Canterbury earthquakes New Zealand: • Residential R
Slide 27: Appendix
27 For personal use only Appendix Investor Presentation| Fletcher Building | © May 2011
Slide 28: Building Products
28 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Building Products Plasterboard Winstone Wallboards • New Zealand’s sole manufacturer and leading supplier of gypsum plasterboard Insulation Fletcher Insulation|Tasman Insulation
Slide 29: Building Products result
29 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Building Products result Dec 10 Dec 09 • Insulation earnings down NZ$m 6 Mths 6 mths %∆ 51% due to impact of stimulus Sales 371 37 436 43 -15 5 package withdrawal in A Australia.
Slide 30: Distribution – PlaceMakers
30 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Distribution Pl PlaceMakers M k The premier supplier of building materials to New Zealand’s commercial and residential construction markets • 62 outlets across New Zealand tradin
Slide 31: Distribution result
31 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Distribution result Dec 10 Dec 09 • Sales ahead due to prior year NZ$m 6 Mths 6 mths %∆ improvement in new housing Sales l 446 435 +3 construction activity EBITDA 29 22 +32 • Con
Slide 32: Infrastructure
32 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Infrastructure Concrete New Zealand Firth | Humes Pipeline Systems | Golden Bay Cement | Winstone Aggregates • 15% of NZ aggregates markets • 55% of NZ cement market • 34 34% of
Slide 33: Infrastructure result
33 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Infrastructure result NZ Concrete • Cement volumes steady Dec 10 Dec 09 • Softer demand for readymix and NZ$m 6 mths 6 mths %∆ masonry products Sales 1,034 974 +6 • Aggregate and
Slide 34: Laminates & Panels
34 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Laminates & Panels Laminex • Leading high pressure laminate & decorative surfaces • Estimated Australasian market shares – Decorated board – No.1 – Medium d d density ffibreboard
Slide 35: Laminates & Panels result
35 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Laminates & Panels result Laminex Dec 10 Dec 09 • Australian volumes higher on NZ$m 6 mths 6 mths %∆ new house completions and Sales 1,001 965 +4 government-funded schools EBITDA
Slide 36: Formica: continued improvement in earnings, due to Asia growth
36 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Formica: continued improvement in earnings, due to Asia growth and cost reduction programme EBIT US$m 1H11 1H10 Asia 14 12 North America 8 3 E Europe 1 -3 3 Corporate -6 -5 EBIT
Slide 37: Steel
37 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Steel Rollforming g and Coated Steel Pacific CoilCoaters|Stramit Building Products|Dimond • Approx. 24% of Australian market (Stramit) • Major player in New Zealand roofing marke
Slide 38: Steel result
38 Company & Market Overview | Strategy | Financial Results | Key Developments | Outlook | Appendix For personal use only Steel result Dec 10 Dec 09 NZ$m 6 Mths 6 mths %∆ • Long steel earnings impacted Sales 616 583 5 3 +6 by competitive pricing pressures and higher scrap EBITDA 54 54 - (input) cost
Slide 39: Geographic exposure to end markets
39 Company & Market Overview | Strategy | Financial Results | Key Developments | Divisional Performance | Outlook For personal use only Geographic exposure to end markets¹ Summary Residential Commercial Infrastructure Total 51% 25% 24% 100% New Zealand 57% 30% 13% 100% Australia 49% 51% 0 100% Rest
Slide 40: Key construction activity metrics
40 Company & Market Overview | Strategy | Financial Results | Key Developments | Divisional Performance | Outlook For personal use only Key construction activity metrics Dec 2010 Dec 2009 Dec 2008 10/09 Building Consents 12 months 12 months 12 months %Mvmt New Zealand - Residential Consents 15 602 1
Slide 41: Important notice
41 Important notice For personal use only NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE U.S. OR TO U.S. PERSONS This presentation does not constitute an offer of any securities for sale in the United States or in any other jurisdiction. The securities offered have n
Slide 42: Presentation to Macquarie Australia Conference
42 For personal use only Presentation to Macquarie Australia Conference May 2011 Bill Roest Chief Financial Officer Investor Presentation| Fletcher Building | © May 2011
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