Fletcher Building Limited · NZX:FBU
Fletcher Building — NZX Australasian Media Day 2003
26 slides from Fletcher Building's conference presentation, November 2003
Slide 1: NZX Australasian Media Day
NZX Australasian Media Day November 2003 Ralph Waters Chief Executive Officer
Slide 2: Fletcher Building
Nov 2003 Fletcher Building One of New Zealand’s top industrial companies with a history going back to the early 1900’s The leader in the NZ building industry NZ$3.6 billion revenue; NZ$1.8 billion market capitalisation FBU is listed on NZX and ASX Strong market shares in all its building s
Slide 3: Shareholders Analysis
Nov 2003 Shareholders Analysis Domicile Sept 03 UK Others USA 7% 4% 13% New Zealand 44% Australia 32% 3
Slide 4: Shareholder Analysis Top 25 Shareholders
Nov 2003 Shareholder Analysis Top 25 Shareholders % 70 64.0 60 50 40 30.0 30 19.3 20 9.0 10 5.1 0.6 0 Total Australia New USA UK Other Zealand 4
Slide 5: The Business
Nov 2003 The Business Corporate Laminates & Building Construction Concrete Distribution Panels Products 5
Slide 6: What is Fletcher Building?
Nov 2003 What is Fletcher Building? Earnings Make Up Concrete & Building Laminates & Construction Products Panels Distribution 9% 54% 22% 15% Not a construction company Not a distribution business A building materials manufacturer with two 6 special channels to market
Slide 7: Why Like This?
Nov 2003 Why Like This? No other similar companies that combine construction / manufacturing / distribution NZ market size too small for normal distribution methods and thus PlaceMakers – a composite distributor for FB and others Construction an important channel that also delivers high retu
Slide 8: The Fletcher Building Model
Nov 2003 The Fletcher Building Model Laminates Building Other Building Panels & Products Concrete Concrete Manufacturers Panels Products Distribution Construction Construction Other Other Distribution Distribution Markets Markets 8
Slide 9: Concrete
Nov 2003 Concrete • One of two domestic cement producers: 600 ktpa (50% share) • Leading position in ready mix and concrete products (33% share) • Leading national aggregates supplier (25% share) • Specialist piping products: concrete and plastic, for infrastructure and irrigation • Leading provider
Slide 10: Building Products
Nov 2003 Building Products • Sole NZ producer of plasterboard (94% share) • Aluminium extrusion: window & door systems • One of two NZ suppliers of painted steel coils • Roll forming manufacturing: roofing & structural components • Steel manufacturing: 200,000tpa from recycled product • Wire manufac
Slide 11: Building Products (cont.)
Nov 2003 Building Products (cont.) • Tasman Insulation No.1 in insulation products in Australasia under the “Pink Batts”, “Fatt Batts” and “Insulco” brands • Tasman Roofing No.1 in metal tiles in NZ. Niche position manufacturing shingle & shake metal tiles in the U.S. The largest producer of steel r
Slide 12: Laminates & Panels
Nov 2003 Laminates & Panels • Leading marketer, distributor & producer of premium decorated boards in Australia and New Zealand • MDF particleboard & decorative board manufacture; doors and mouldings To Laminex from 1 July 03 • Furniture & joinery distribution 12
Slide 13: Distribution
Nov 2003 Distribution $800m revenue through: • Leading domestic building materials supplier (trade emphasis); 51 stores nationally 45 are joint ventures 13
Slide 14: Construction
Nov 2003 Construction Major contractor of choice in NZ & South Pacific Commercial, industrial and engineering Extensive portfolio of completed projects; established in early 1900’s General contractor on many recent NZ landmark projects: Sky Tower Auckland Hospital Manukau Waste Water T
Slide 15: Current Strategies
Nov 2003 Current Strategies Portfolio Management concentration to fewer higher return businesses Grow in New Zealand support core businesses and grow where opportunities arise Achieve Australian Expansion decrease volatility in earnings and provide path for future growth 15
Slide 16: Report Card
Nov 2003 Report Card 2001 - $ 94m EBIT pre unusuals 2002 - $205m EBIT pre unusuals 2003 - $331m EBIT pre unusuals Disposed of Bolivian business and Construction Australia amongst others Acquired Laminex November 2002 Acquired Tasman September 2003 16
Slide 17: Summary of Results
Nov 2003 Summary of Results Jun Jun % 2003 2002 YOY $m 12 Mths 12 Mths Change Revenue 3221 2966 +9 EBITDA 429 294 +46 EBITA 338 212 +59 EBIT Before Unusuals 331 205 +61 Net Earnings Before Unusuals 168 88 +91 Net Earnings 168 93 +81 EPS Before Unusuals (cents) 43.4 25.5 +70 EPS After Unusuals (cents
Slide 18: Profit After Tax
Nov 2003 Profit After Tax Jun Dec Jun 2003 2002 2002 $m 12 Mths 6 Mths 12 Mths EBIT before Unusuals 331 160 +205 Interest -59 -23 -51 Tax -85 -45 -54 Minority Interests -19 -9 -12 NPAT before Unusuals 168 83 88 Adjustments Net of Tax 5 Profit After Tax as per Accounts 168 83 93 18
Slide 19: Key Ratios
Nov 2003 Key Ratios Total Shareholder Return (TSR) 43% 24% 6% Jun 01* Jun 02 Jun 03 * June 01 is the return for the 3 months from separation date ** TSR calculated ( (Gross Dividend Paid + Movement in Share Price)/Opening Share Price) 19
Slide 20: Key Ratios
Nov 2003 Key Ratios Debt/Debt Plus Equity % 80 70 53.2 60 49.2 49.9 47.2 50 40.2 40 30 20 10 0 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 * 52.5 post Tasman 20
Slide 21: Key Ratios
Nov 2003 Key Ratios Interest Cover* 12 10 7.3 8 5.8 4.6 (times) 6 3.1 4 2 0 Jun 01 Dec 01 Jun 02 Jun 03 * EBITDA pre unusuals/interest paid including capital note interest 21
Slide 22: Key Ratios
Nov 2003 Key Ratios Return on Average Equity* % 23.0 30 16.9 12.1 20 10 0 -10 -20 -30 -43.8 -40 -50 Jun 01 Dec 01 Jun 02 Jun 03 * Net earnings after capital notes interest/shareholders funds 22
Slide 23: Key Ratios
Nov 2003 Key Ratios Return on Average Funds* % 23.1 24.4 25 17.6 20 15 10 5 0 -8.6 -5 -10 Jun 01 Dec 01 Jun 02 Jun 03 * EBIT/(Average net debt+equity+capital notes) - deferred tax asset 23
Slide 24: Dividend
Nov 2003 Dividend 12 10 9 10 8 C ents per 8 6 6 share 6 4 2 0 Final Interim Final Interim Final 2001 2002 2002 2003 2003 24
Slide 25: Acquisition Criteria
Nov 2003 Acquisition Criteria No. 1 or No. 2 in industry Good industry structure Good management in place and staying on EVA positive within two years 25
Slide 26: Slide 26