Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (June 2015)
19 slides from Fletcher Building's investor day presentation, Jun 18, 2015
Slide 1: Investor Day Brisbane
Investor Day Brisbane June 18 2015
Slide 2: Dean Fradgley, Chief Executive New Zealand Distribution
Dean Fradgley Chief Executive New Zealand Distribution 2 Fletcher Building Investor Day Brisbane | © June 2015
Slide 3: Disclaimer
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’s actual results could differ materially. Media r
Slide 4: Objectives for today's New Zealand Distribution Investor Presentation
Objectives for today’s New Zealand Distribution’s Investor Presentation Provide an overview of New Zealand Distribution Outline high level strategy Share current key activities 4 Fletcher Building Investor Day Brisbane | © June 2015
Slide 5: New Zealand Distribution is a portfolio of businesses within building supplies and steel markets
New Zealand Distribution is a portfolio of 7 businesses within the building supplies & steel markets 1st or 2nd in their markets Operate within traditional markets Well recognised within New Zealand Well established brands At different points in their maturity Different scales of operati
Slide 6: The Steel Distribution businesses have significant opportunity to deliver market leading performance
The Steel Distribution businesses have significant opportunity to deliver a market leading performance Easysteel is a major New Supplies the reinforcing steel The pioneer of pre-painted steel Zealand distributor, processor and mesh used in concrete products in New Zealand, and fabricator of steel an
Slide 7: New Zealand Distribution is in year two of implementing its strategy
New Zealand Distribution is in year two of implementing its strategy Deliver superior returns Gain share of existing customers and gain new customers Best Customer Preferred Vendor Service Relationship Best People Most efficient operating model 7 Fletcher Building Investor Day Brisbane | © June 2015
Slide 8: New Zealand Distribution has the potential to unlock more shareholder value
New Zealand Distribution has the potential to unlock more shareholder value Target How Buy better / sell better Gross profit realisation Grow trading profit Productivity and efficient cost base Core category penetration Shop within a shop concept Take increased Omni Channel Organic potential for Pla
Slide 9: PlaceMakers: Clear strategy with disciplined execution has delivered record earnings
PlaceMakers: Clear strategy with disciplined execution has delivered record earnings People Market Environment Employee engagement at an all time Continued growth forecast through high cycle Enhanced operator and branch Highly competitive oversupplied capability to execute the level of change landsc
Slide 10: Where to win
Excelling in the basics will drive organic growth, with opportunities in white space categories and Omni channel Core Sell more Omni • Group Home Builder • Small Medium Specialist Channel Enterprises products • Underperforming Where to win branches • Share of wallet Specialisms & SWAS • Kitchens • B
Slide 11: 'Shop within a shop' concepts are penetrating white space
‘Shop within a shop’ concepts are penetrating white space Market Size Market Size Market Size Market Size $810M $400M $700M $280M Market Size Market Size Market Size $520M $400M $120M 11 Fletcher Building Investor Day Brisbane | © June 2015
Slide 12: Implementation of a national service offer has differentiated PlaceMakers
Implementation of a national service offer has differentiated PlaceMakers Q2 ’15 Q3 ’15 Q4 ’15 Q1 ’16 Accountable 4 trial stores: Roll out NPS launch to • Measure • Operators • Whangarei balance to measure performance • Regional • Silverdale network customer • Deliver Managers • Dunedin engagement o
Slide 13: Significant activity and behavioural change has been required to achieve a national standard
Significant activity and behavioural change has been required to achieve a national standard WHO’S • Retrained branch personnel ACCOUNTABLE? • Roles and responsibilities changed • Internal process change Operator • Defined and implemented range for all branches • Target to be 1000 lines Q3 FY16 Regi
Slide 14: PlaceMakers is the only building supplies distributor publishing its delivery performance
PlaceMakers is the only building supplies distributor that is publishing its delivery performance 14 Fletcher Building Investor Day Brisbane | © June 2015
Slide 15: TV activity emphasises focus on being customer leading and centred on service
TV activity emphasises focus on being customer leading and centred on service 15 Fletcher Building Investor Day Brisbane | © June 2015
Slide 16: Increased focus on performance and measurement of operational metrics to maximise returns
Increased focus on performance and measure- ment of operational metrics to maximise returns CUSTOMER Monthly Actual Monthly Target YTD Actual YTD Target No Active Customers (>$/Qtr) 107 102 Avg Customer Spend (>$/Qtr) 47,531.6 52,022.5 Pricing Credit as % Invoice 0.19% 0.36% 0.17% 0.36% RED DOT/A Li
Slide 17: Mico Plumbing: turnaround strategy is on track to deliver improved EBIT performance
Mico Plumbing: turnaround strategy is on track to deliver improved EBIT performance People Market Environment Engagement score significantly Competitive landscape but plumbing improved distributors historically have made reasonable profits in NZ Focus on leadership, recognition and communication Con
Slide 18: Steel Distribution: a market leading customer value proposition will underpin EBIT improvement
Steel Distribution: a market leading customer value proposition will underpin EBIT improvement People Market Environment Weighted market growth of 5% year on year Engagement scores significantly improved for the period built off the back of a market beating CVP Increased people capability providing
Slide 19: Summary: continued progress within NZ Distribution
Summary: continued progress within NZ Distribution – growing earnings through strong execution Superior returns Customer Network leading service efficiency differentiation Establish Set “what Embrace Reduce Critical Areas good looks Centralisa- Complexity of Focus like” tion 19 Fletcher Building Inv