Fletcher Building Limited · NZX:FBU
Fletcher Building — FY2020 Earnings Presentation
9 slides from Fletcher Building's earnings presentation, Aug 11, 2020
Slide 1: Fletcher Building FY20 Expected Annual Results
Fletcher Building FY20 Expected Annual Results ROSS TAYLOR — Chief Executive Officer BEVAN MCKENZIE — Chief Financial Officer 11 August 2020
Slide 2: Important Information
Important Information This presentation has been prepared by Fletcher Building Limited and its group of companies (“Fletcher Building”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This presentation provides addi
Slide 3: Navigated COVID-19 impacts, business set up for FY21, and maintained momentum on key strategies
Navigated COVID-19 impacts, business set up for FY21, and maintained momentum on key strategies and focus areas FY20 FY21 set-up FY21 and beyond • Responded quickly to • Positioned the • Strategy and growth COVID-19 impacts business cost base for ambitions remain • Focus on health and reduced activi
Slide 4: COVID-19 response to NZ lockdown and Australia restrictions focused on health and safety, customer service, costs and cash
COVID-19 response to NZ lockdown and Australia restrictions focused on health and safety, customer service, costs and cash Actions FY20 Results • Safely shut down and restarted NZ businesses and dealt with Australia restrictions • Maintained customer service and performance • COVID-19 Support Hub Ap
Slide 5: While the Construction division continued to progress and finish historical projects, the provision envelope has increased
While the Construction division continued to progress and finish historical projects, the provision envelope has increased Significant progress made on two fronts since HY18 Provision envelope increased Work to Complete ($b) • Well through the historical Construction work book 0.7 • Additional $150m
Slide 6: Setting up for likely lower market activity in FY21 required permanent reductions to our cost base and workforce
Setting up for likely lower market activity in FY21 required permanent reductions to our cost base and workforce Actions Impact • Reductions to operating footprint, supply chain costs and general costs • Actions expected to achieve a permanent reduction in cost base in FY21 of c$300m p.a. • Workforc
Slide 7: Key aspects of expected FY20 annual results
Key aspects of expected FY20 annual results Profit impacted by COVID-19, cash flow and balance sheet strong Unaudited reported results Jun 2020 NZ$m 12 months EBIT before significant items and before construction provisions 310 Construction provisions (150) EBIT before significant items 160 Signific
Slide 8: FY21 - Positioned for reduced activity
FY21 - Positioned for reduced activity Full update on 19 August 2020 • Business reset for market downturn of c25% in NZ and c20% in Australia • Suite of cost-out actions already implemented to preserve profitability • Strong cash flows of $410m, liquidity of $1.3b post-repayment of USPP 2012 notes •
Slide 9: Q&A
Q&A Fletcher Building FY20 Expected Annual Results Presentation