Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (May 2013)
13 slides from Fletcher Building's investor day presentation, May 22, 2013
Slide 1: Investor Strategy Day
FLETCHER BUILDING For personal use only INVESTOR STRATEGY DAY 22 May 2013 Nick Olson Chief Financial Officer
Slide 2: Disclaimer
Investor Strategy Day | Fletcher Building | © May 2013 | Page 2 Disclaimer For personal use only 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 ar
Slide 3: Outline
Investor Strategy Day | Fletcher Building | © May 2013 | Page 3 Outline For personal use only Why did I join Fletcher Building? 6 weeks in: opportunities and challenges Priorities: Short term Long term Capital structure and distribution policy Funding Policy
Slide 4: Who am I?
Investor Strategy Day | Fletcher Building | © May 2013 | Page 4 Who am I? For personal use only Joined Fletcher Building on 8 April 2013 Bachelor of Engineering (1st Class Honours) from the University of Auckland. Previously chief financial officer at Telecom New Zealand Limited Other roles during 1
Slide 5: 6 weeks in: opportunities and challenges
Investor Strategy Day | Fletcher Building | © May 2013 | Page 5 6 weeks in: opportunities and challenges For personal use only Opportunities: FBUnite: the Active Centre Operating expenditure – line by line cost reduction Cash Management: − Working capital − Capital expenditure Challenges: Managing t
Slide 6: Priorities
Investor Strategy Day | Fletcher Building | © May 2013 | Page 6 Priorities For personal use only Short term: • Connect with all Divisional CE’s & Finance professionals • Deep understanding of what drives value in the business • Expand Group level performance management capability • Communicate how w
Slide 7: Capex versus depreciation
Investor Strategy Day | Fletcher Building | © May 2013 | Page 7 Capex versus depreciation For personal use only NZ$m 400 350 300 250 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Capex SIB Growth Depreciation Note: excludes acquisitions
Slide 8: Capital structure
Investor Strategy Day | Fletcher Building | © May 2013 | Page 8 Capital structure For personal use only Fletcher Building’s current credit metric targets are: 1. Debt/Debt + Equity (book) between 30 to 40% 2. Credit metrics broadly consistent with its BBB+ to BBB investment grade peer group Debt/Deb
Slide 9: Maintaining key credit ratios consistent with other investment grade rated entities
Investor Strategy Day | Fletcher Building | © May 2013 | Page 9 Maintaining key credit ratios consistent with other investment grade rated entities For personal use only Key Credit / Bank Ratios BBB/Baa Bank FY12 NZ$M Covenants Actual Net Debt/Net Debt + Equity 30-45% 35% EBIT/Interest 7.00-4.01X 1.
Slide 10: Funding sources
Investor Strategy Day | Fletcher Building | © May 2013 | Page 10 Funding sources For personal use only Debt funding is provided through: Banking syndicate Private Placements (US and Japan) Capital Notes: issued in New Zealand, primarily to retail investors Source Funds Capital Notes Bank Debt 18% 38
Slide 11: Current debt profile
Investor Strategy Day | Fletcher Building | © May 2013 | Page 11 Current debt profile For personal use only Debt Maturity Profile December 2012 700 600 500 400 300 200 100 - 2013 2014 2015 2016 2017 2018 2020 2022 2024 2027 June Years Debt - Drawn Commited Undrawn Debt Facilities Cash Broad spread o
Slide 12: Debt Profile
Investor Strategy Day | Fletcher Building | © May 2013 | Page 12 Debt Profile For personal use only Currency exposure: Interest rate exposure: • Balance sheet is hedged by borrowing • Approximately 70% of borrowings in the same currency mix as the asset are fixed with a duration of 3 years base, in
Slide 13: Distribution policy
Investor Strategy Day | Fletcher Building | © May 2013 | Page 13 Distribution policy For personal use only Current dividend guidelines: Goal is to at least maintain the dividend each year, with the aim that dividends will rise over time commensurate with further earnings growth. For the next several