Slide 1: Analyst Presentation: Auckland March 2009
Analyst Presentation: Auckland March 2009 Chris Ellis, Chief Executive, Building Products
Slide 2: Cautionary Statement
Cautionary Statement This confidential 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 dif
Slide 3: Building Products Division: Building Performance & Sustainability
Building Products Division: “Building Performance & Sustainability” Fletcher Building Products Division Thermal Acoustic Warmth and comfort A group of building products positioned for growth in home performance retrofit and “Green Build” practices Analysts Presentation and Auckland Site Tour 03 Marc
Slide 4: Strong Market Positions, Good Industry Structure
Strong Market Positions, Good Industry Structure The Building Products Division comprises three key product groupings and several individual businesses. During the year we acquired Baron Insulation and closed our door manufacturing business. Plasterboard Insulation Metal Roof Tiles > Winstone Wallbo
Slide 5: Strong Market Positions, Good Industry Structure: Other Businesses
Strong Market Positions, Good Industry Structure: Other Businesses Fletcher Aluminium > No. 2 in the New Zealand market > Innovative product range Tasman Sinkware > No. 1 in Australian market > Australia’s sole sink manufacturer > Strong brands in premium and mid-range products Tasman Access Floors
Slide 6: Key Residential Products and Brands
Key Residential Products and Brands Analysts Presentation and Auckland Site Tour 06 March 2009
Slide 7: Key Commercial Products and Brands
Key Commercial Products and Brands Analysts Presentation and Auckland Site Tour 07 March 2009
Slide 8: Building Products results
Building Products results Building Products EBITDA and EBITDA margin* NZ$m Dec 08 Dec 07 % 6 months 6 months 180 30 Sales 412 376 10 160 140 25 EBITDA 67 86 -22 20 EBIT 55 74 -26 EBITDA margin (5) 120 EBITDA ($M) 100 15 Funds Employed % 655 572 15 80 60 10 EBITDA /sales % 16.3 22.9 -29 40 5 EBIT/sal
Slide 9: Building Products lower volume levels but improved prices
Building Products lower volume levels but improved prices Dec 08 Dec 07 Gross Sales $m 6 months 6 months1 % Volume Price EBITDA New Zealand - Plasterboard 115 110 5 - Insulation2 82 78 5 - Metal Roof Tiles3 107 84 27 Australia - Insulation 106 103 3 - Sinkware 18 22 -18 1 Restated to current exchang
Slide 10: Building Products
Building Products Plasterboard > Lower volumes due to reliance on housing activity in NZ > Improved sales mix and overhead cost control helped result Insulation > Australia: sluggish demand in key NSW and Victoria markets > New Zealand: volumes down in weak housing market > Government rebate package
Slide 11: Key Strategies
Key Strategies Business restructuring > Manufacturing plant efficiencies > Logistics review as volumes fall > Lean manufacturing and waste reduction > Shift and overhead reductions Geographic and product > Metal Roof Tiles – EU plant > USA new tile profiles diversification > Fletcher Aluminium – A1
Slide 12: Building Products: Key Growth Drivers
Building Products: Key Growth Drivers Plasterboard Insulation Metal Roof Tiles > Product differentiation – > Energy efficiency > Japan/Europe/Africa Performance board mix > Regulatory changes penetration > Increasing average house size > Government rebate > US Distributor growth > DVS - Indoor air q
Slide 13: Plasterboard: Winstone Wallboards, DVS
Plasterboard Winstone Wallboards, DVS Analysts Presentation and Auckland Site Tour 13 March 2009
Slide 14: Plasterboard: Progress
Plasterboard: Progress New Christchurch Warehouse Lighter Paper > Improved service offer to South Island market > Cost containment New Christchurch Bulk Gypsum Shed Price Increase In August 2008 > Improved environmental performance > Transport charges Analysts Presentation and Auckland Site Tour 14
Slide 15: Insulation: Fletcher Insulation, Tasman Insulation
Insulation Fletcher Insulation, Tasman Insulation Analysts Presentation and Auckland Site Tour 15 March 2009
Slide 16: Insulation: Progress
Insulation: Progress Insulation manufacturing consolidated across Australasia > Auckland manufacturing batts for the > Foils and building papers moved from Duroid Australian market (Auckland) to Homebush plant > Unitising equipment to be installed in Auckland > Manufacturing specifications standardi
Slide 17: Baron Insulation: Secondary processor – industrial & building services channel
BARON INSULATION: Secondary processor – industrial & building services channel The Baron acquisition is an extension of Current Products our current Australian insulation business. > Fabricated duct board Located in Melbourne Baron processes > Industrial insulation insulation products to meet the re
Slide 18: Insulation: Australian Stimulus Package
Insulation: Australian Stimulus Package Timing Structure > Full commencement July 2009 > Package is designed to enable ease of transition to December 2011 for unemployed / underemployed people to become insulation installers. Scale Installers will require accreditation that will > Target is to provi
Slide 19: Insulation: Australian Stimulus Package
Insulation: Australian Stimulus Package Specification Impact > It is probable that the technical specification will > FB has four plants (Australia and New Zealand) be relatively lenient to encourage and enable a which are likely to move to full capacity in Q4 F09. wide range of products to be used
Slide 20: Metal Roof Tiles: AHI Roofing, Decra
Metal Roof Tiles AHI Roofing, Decra Analysts Presentation and Auckland Site Tour 20 March 2009
Slide 21: Metal Roof Tiles: Progress
Metal Roof Tiles: Progress Hungary plant being commissioned Nilai plant improvement > Improving service to European customers > Accessory oven built in Malaysia > Increased penetration in high margin markets > Capacity expansion to meet growth Lower NZ $, steel prices falling expectations > Prices l
Slide 22: Metal Roof Tiles: Hungarian Plant
Metal Roof Tiles: Hungarian Plant New AHI Roofing plant constructed in Várpalota, Hungary: > Supply current EU volumes and provide for growth > Construction complete > Plant will be in full production by June 2009 Analysts Presentation and Auckland Site Tour 22 March 2009
Slide 23: Metal Roof Tiles: Hungarian Plant: tile transfer into the oven
Metal Roof Tiles: Hungarian Plant: tile transfer into the oven Analysts Presentation and Auckland Site Tour 23 March 2009
Slide 24: Metal Roof Tiles: Hungarian Plant: tiles entering the oven
Metal Roof Tiles: Hungarian Plant: tiles entering the oven Analysts Presentation and Auckland Site Tour 24 March 2009
Slide 25: Metal Roof Tiles: Hungarian Plant: stacks of tiles
Metal Roof Tiles: Hungarian Plant: stacks of 25 tiles Analysts Presentation and Auckland Site Tour 25 March 2009
Slide 26: Metal Roof Tiles: Hungarian Plant
Metal Roof Tiles: Hungarian Plant Analysts Presentation and Auckland Site Tour 26 March 2009
Slide 27: Other Businesses
Other Businesses > New leadership performing well > Number of large projects in the pipeline > Commercial permits remain robust > Acquired AAL which is an aluminium partitioning systems business > New leadership in place > Now part of Forman Group > Press Handling system bedded in and increasing pla
Slide 28: Key Facts: Products
Key Facts Products Analysts Presentation and Auckland Site Tour 28 March 2009
Slide 29: Key Facts: Plasterboard
Key Facts: Plasterboard 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 (Auckland and Christc
Slide 30: Key Facts: Insulation
Key Facts: Insulation Insulation has superior competitive infrastructure, technology and brands including: > Manufacturing facilities – 4 out of 6 of the Glasswool (GW) plants in Australasia, plus laminated foil plant > An exclusive License Agreement with Owens Corning (the world’s leading Glasswool
Slide 31: Key Facts: Insulation
Key Facts: Insulation Insulation has most of the Plants: 4 of 6 Glasswool Plants and a comprehensive Branch structure Fletcher Insulation: Glasswool Foil Branch CSR: Glasswool Brisbane Foil Rockwool Sydney Auckland GW Plants Annual Tonnes (Capacity) Melbourne Auckland 10,000 12% Christchurch 4,000 5
Slide 32: Key Facts: Metal Roof Tiles
Key Facts: Metal Roof Tiles Europe Hungary Japan Los Angeles Middle East Africa Malaysia Employees = 385 South America Volume = 17m tiles p.a. = 8m sq metres roofing Auckland Manufacturing AHI sales regions Analysts Presentation and Auckland Site Tour 32 March 2009