Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (March 2008)
29 slides from Fletcher Building's investor presentation, Mar 12, 2008
Slide 1: Analysts Presentation: Sydney
For personal use only Analysts Presentation: Sydney March 2008 Chris Ellis, Chief Executive, Building Products
Slide 2: Cautionary Statement
Cautionary Statement This confidential presentation contains not only a review For personal use only 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’s ac
Slide 3: Building Products Division: Building Sustainability
Building Products Division: “Building Sustainability” For personal use only Fletcher Building Products Division Thermal Accoustic Warmth and comfort A group of building products positioned for growth with energy efficiency and “Green Build” practices Analysts Presentation and Sydney Site Tour 03 Mar
Slide 4: Strong Market Positions, Good Industry Structure
Strong Market Positions, Good Industry Structure The Building Products Division comprises three major groupings and several individual businesses. For personal use only During the year we acquired DVS ventilation and divested our mouldings business Plasterboard Insulation Metal Roof Tiles > Winstone
Slide 5: Strong Market Positions, Good Industry Structure: Other Businesses
Strong Market Positions, Good Industry Structure: Other Businesses For personal use only Forman Group (Acquired December 2006) > Distributor and installer of commercial insulation, ceiling and wall systems > No 1 in New Zealand market > Strong product brands > Commercial demand in NZ forecast to be
Slide 6: Key Residential Products and Brands
Key Residential Products and Brands For personal use only Analysts Presentation and Sydney Site Tour 06 March 2008
Slide 7: Key Commercial Products and Brands
Key Commercial Products and Brands For personal use only Analysts Presentation and Sydney Site Tour 07 March 2008
Slide 8: Building Products Historical Earnings
Building Products Historical Earnings For personal use only 35 180 $m % 1H08 1H07 160 30 140 25 Sales 9.3 376 344 120 20 100 EBIT 2.8 74 72 80 15 60 Margin % -5.7 19.7 20.9 10 40 20 5 Funds 2.7 572 557 0 0 2003 2004 2005 2006 2007 2008 Return on Funds % 6.8 25.9 27.81 EBITDA H1 1. Proforma return ad
Slide 9: Building Products Sales Volumes
Building Products Sales Volumes For personal use only Change H1 2008 vs H1 2007 15% Plasterboard 11.0% 10% > Business stable 5% 0.0% 1.4% 0% Insulation -0.5% Plasterboard Glass Wool Roof Tiles > Overall strong despite NSW weakness Market Statistics Change H1 2008 vs H1 2007 Metal Roof Tiles 7% 6.1%
Slide 10: Key Strategies
Key Strategies For personal use only Market driven operational > Manufacturing plant efficiencies > Logistics excellence > Lean manufacturing and waste reduction Geographic and product > Metal Roof Tiles – EU plant > Product Development diversification > Fletcher Aluminium – A1 Curtain wall Growth o
Slide 11: Building Products: Key Growth Drivers
Building Products: Key Growth Drivers For personal use only Plasterboard Insulation Metal Roof Tiles > Product differentiation – > Energy efficiency > Japan/Europe penetration Performance board mix > Regulatory changes > US Distributor growth > Increasing average house size > Recovery in NSW > DVS -
Slide 12: Plasterboard
For personal use only Plasterboard Winstone Wallboards, DVS Analysts Presentation and Sydney Site Tour 12 March 2008
Slide 13: Plasterboard: Progress
Plasterboard: Progress For personal use only New Christchurch Warehouse Rondo distribution to Residential Market > Improved service offer to South Island market > Improved margin New Christchurch Bulk Gypsum Shed Price increase in August 2007 > Improved environmental performance > Maintained margin
Slide 14: DVS: Home Comfort / Indoor Air Quality Systems
DVS: Home Comfort / Indoor Air Quality Systems For personal use only The DVS acquisition provides an entry vehicle Current range to the emerging health, comfort and indoor > Air Ventilation Systems air quality market > Heat Pump Systems > Over 55% of New Zealand’s 1.4 million - Fujitsu distribution
Slide 15: Insulation
For personal use only Insulation Fletcher Insulation, Tasman Insulation Analysts Presentation and Sydney Site Tour 15 March 2008
Slide 16: Insulation: Progress
Insulation: Progress For personal use only Impact of Australian Merger behind us > Key leadership changes complete > Holding market share in New Zealand and Australia > Supply chain management delivering cost reductions > Manufacturing efficiency and IFOT improvements and improved service levels > S
Slide 17: Insulation: Regulation likely growth driver
Insulation: Regulation likely growth driver For personal use only The Australian insulation market was relatively flat through the 90s. However, improving building codes drove rapid growth from the late 1990s through to 2005, particularly in new dwellings. Growth slowed from 2005 to 2008, as new bui
Slide 18: Metal Roof Tiles
For personal use only Metal Roof Tiles AHI Roofing, Decra Analysts Presentation and Sydney Site Tour 18 March 2008
Slide 19: Metal Roof Tiles: Progress
Metal Roof Tiles: Progress For personal use only New Plant being built in Hungary Nilai plant improvement > Improving service to European customers > Reviewing options to increase production > Increased penetration in high margin markets capacity in Malaysia > Capacity expansion to meet growth expec
Slide 20: Metal Roof Tiles: Hungarian Plant
Metal Roof Tiles: Hungarian Plant For personal use only New AHI Roofing plant to be constructed in Várpalota, Hungary: > Supply current EU volumes and provide for growth > Permitting process is nearing completion > Construction due to commence in April > Plant will be in full production by July 2009
Slide 21: Other Businesses
Other Businesses For personal use only > New General Manager appointed following retirement of previous owners > Number of large projects in the pipeline > Acquired AAL which is an aluminium partitioning systems business > Press Handling system bedded in and increasing plant efficiency and reducing
Slide 22: Key Facts: Products
For personal use only Key Facts Products Analysts Presentation and Sydney Site Tour 01 March 2008
Slide 23: Key Facts: Plasterboard
Key Facts: Plasterboard For personal use only Factory Distribution Centre Products Auckland > Plasterboard > Compounds/Accessories > Systems > Rondo residential products Wellington Comments > Sole manufacturer of plasterboard in New Zealand, leading market share Christchurch > 2 manufacturing plants
Slide 24: Key Facts: Insulation
Key Facts: Insulation For personal use only Insulation has superior competitive infrastructure, technology and brands including: > Manufacturing facilities – 4 out of 5 of the Glasswool (GW) plants in Australasia, plus 2 laminated foil plants > An exclusive License Agreement with Owens Corning (the
Slide 25: Key Facts: Insulation
Key Facts: Insulation For personal use only Insulation has most of the Plants: 4 of 5 Glasswool Plants and a comprehensive Branch structure Fletcher Insulation: Glasswool Foil Branch CSR: Glasswool Brisbane Glasswool (under construction) Foil Sydney Rockwool Auckland GW Plants Annual Tonnes (Capacit
Slide 26: Key Facts: Metal Roof Tiles
Key Facts: Metal Roof Tiles For personal use only Europe Hungary (under construction) Japan Los Angeles Middle East Africa Malaysia Employees = 385 Volume = 17m tiles p.a. = 8m sq metres roofing Auckland FBL Plants AHI Roofing Plants Analysts Presentation and Sydney Site Tour 05 March 2008
Slide 27: Key Facts: Forman Group
Key Facts: Forman Group For personal use only Comments Forman Commercial Interiors Whagarei > Distributors and installers of Insulation, Ceiling Forman Building Systems Forman Insulation and Wall Systems Auckland Forman Manufacturing Hamilton > Manufacturers of Insulation and Foam Systems Group Head
Slide 28: Key Facts: Fletcher Aluminium
Key Facts: Fletcher Aluminium For personal use only Comments > Vertically integrated manufacturing plant. Extruders of exclusively designed aluminium profiles that are powder coated or anodised, packaged on site and dispatched throughout New Zealand North Island > Revenue 70% – windows and doors 55
Slide 29: Key Facts: Tasman Sinkware
Key Facts: Tasman Sinkware For personal use only Employess = 100 Head Office and Maunfacturing Plant (Adelaide) Branch Offices (Brisbane, Sydney, Melbourne) Australian Agents (Canberra, Darwin, Hobart, Perth, Townsville, Wagga Wagga) US Warehouses / Offices (Corona, Ohio) Overseas Agents (NZ, Canada
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