Slide 1: Fletcher Building
» * FletcherSuilding
Slide 2: This Half Year Results presentation dated February
This Half Year Results presentation dated 9 February 2005 provides additional comment on the media release of the same date. As such, it should be read in conjunction with and subject to the explanations and views of future outlook on market conditions, earnings and activities given in that release.
Slide 3: Highlights
Highlights io : Net profit up 45% on pcp to $161 million Of this, $66 million + tax credits will be distributed to shareholders. TSR of 50% for the 6 month period Both Laminex and Tasman have a well exceeded original earnings and synergy forecasts i 0s ay a Ly 7 _ 7 _ 7 _ . L yy a. _ - D>, oy i vs “
Slide 4: Summary of Results
Summary of Results Dec Dec Jun 2004 2003 2004 $m 6 Mths 6 Mths 12 Mths Revenue 2171 1929 3958 EBITDA 349 274 582 EBITA 294 222 471 EBIT 288 216 460 Net Earnings 161 111 240 EPS (cents) 36.7 25.9 55.7 Dividend cps 15.0 11.0 25.0 a ye 7 yy 7 L a ————— a oy yi Gy Co y sigs vi Mg ae Me, Ly MAE Wy Vy Bi
Slide 5: Segmental EBIT
Segmental EBIT Dec 2004 $m 6 Mths Building Products 121 Distribution Infrastructure Laminates & Panels Corporate/Unallocated Dec 2003 6 Mths Jun 2004 12 Mths 164 73 136 EBIT 288 460 Ly, tN LE iy yy By a 7 ys yO LD Ge yy vy Ly Uy, 4 7 Lo L Le EM MEGANE Vig 7 a Wi 7 i ee a i AA A me ay . “a ae yy Le e
Slide 6: Building Products Results
we Bul $m Revenue EBIT Margin Funds Iding roducts Results Return on Funds (annualised) * Includes 9 months of Tasman Ok *** Includes 3 months of Tasman ys La Ly Ly LL a, hy : y Fr Results 7 Ve ee q a OM Wy a Wy a Hs J ey yy i A ee i Vay HMMM a Proforma return based on full 12 months of Tasman Ge Ve
Slide 7: Building Products
Building Products OQ} Record domestic volumes from strong markets in New Zealand OQ Operational improvements across the board OY Winstone Wallboards » Held market share circa 94% «= Growth in performance boards Q Fletcher Aluminium = Improved margins and earnings ? UE UaNUI TEE, wenn nanan wpa yy MA
Slide 8: Building Products
Building Products Q Insulation (NZ) = Excellent result » Furnace rebuilt over Christmas break Q Decra Roofing (USA) » Strong sales growth = Oven expansion underway Q AHI Roofing (NZ) = Exports increasing « Malaysian plant acquired Le We UU iy y yy WY LY, ] yy Ly Li Lo Lg a yy 7 Ly gy) Ly yf y 7 yy -
Slide 9: Building Products
Building Products Q Insulation (Australia) « Strong sales performance = Capacity constrained QO Access Flooring » Good contracts won QO Sinkware « Exports strong and holding in the domestic market VIE yy yyy iy LL ae yyy Bie Uy % is yy BSG V4 ALN CELINA TEN SAE LAE A Ca ti La Hee ie ae y a Ze UO L L
Slide 10: Building Products
ee LLL LL LE We Building Products QO Steel Manufacturing « Margins held in period of fluctuating prices « Strong demand = Returns were above WACC QO Steel Processing & Distribution « Very strong sales growth «= Earnings enhanced by improved margins yy 7 EE 7 ME, i TEN Vy iy eg oy Bis SM WOME 1G ij L
Slide 11: Distribution Results
Distribution Results $m Gross Revenue EBIT Margin Funds Return on Funds (annualised) ys La yy Ly 7 Ve ee q a OM Wy eee He ye Len ae Li 7 HMMM MAE Dec 2004 6 Mths 472 42 8.9% 112 75.0% Tn ye Hy HE Be We La yy He PLEA ANE AEE yy yp Ly Le LE ee ee Wy TE Ly Ly a Is ) ae a Dec 2003 6 Mths 425 36 8.5% 102
Slide 12: Distribution
12 istributio QO Revenues up 11% and earnings 17% on pcp OQ Excellent margins and returns Q Riccarton totally rebuilt - largest trade store in New Zealand OQ) New stores replacing old/smaller stores in Lunn Avenue Auckland and Queenstown Ly LLL ON EE UT ES EE EC 7 Wy, Ly MHC y Yi, Ly Wg ve ee ay EN
Slide 13: Infrastructure Results
13 Infrastructure Results Dec Dec Jun 2004 2003 2004 $m 6 Mths 6 Mths 12 Mths Revenue 618 570 1161 EBIT 77 62 136 Margin 12.5% 10.9% 11.7% Funds 430 362 364 Return on Funds (annualised) 35.8% 34.3% 37.4% ye Le WWE yy 7, Ly LL LLL Ye oy 77 Wy : a WL yi 7 yy 7 7 yy yi NGM Mes EE LE i A ies WY Wie Ay A
Slide 14: Infrastructure
14 Infrastructure Q Construction profit down $4 million on pcp but largely timing of profit recognition QO Contracts completed » Sky City Conference Centre * Grafton Gully (} New major construction contracts: = Pohukura ($90m) = Northern Busway ($180m) * Auckland Business School ($130m) Q Bidding =
Slide 15: Infrastructure
15 Infrastructure Q) Q) Q) Ge yy Wi | ae i if iy ee y Uy) Ly, y yy, y Wy, LN EN MN LO mn, ue ey We LD i Wa ey He MMM MAMMA MEME MMM AEE ML MELEE a ee Was EE Record concrete volumes and earnings across the board Golden Bay « Upgrade project commissioned at 2000 tpd = Further upgrade due for completio
Slide 16: Infrastructure
16 Infrastructure QO Winstone Aggregates Mix and selling price improved Whitehall quarry expansion Hunua quarry expansion Infrastructure underpins growt O) Humes « Prices, margins and volumes all improved « Land subdivision on the increase » Expanding plastic pipe production iy Le vy ay 7 yyy ay LO
Slide 17: Infrastructure
17 Infrastructure QO Stresscrete « Benefits from strong infrastructure market « Margins and earnings improved OH Overseas « Steady results from Fiji and Peru Wi yy j y PE omimirpiprripesr american 7 yy WN yyy ae y yy Uy ya Was Ya MMA MID ae HG i UN BM wy yy ye G y — 7 ag oo La a oo 7 a 7] 7 Ay yy Ly
Slide 18: Laminates & Panels Results
18 Laminates & Panels Results Dec Dec Jun 2004 2003 2004 $m 6 Mths 6 Mths 12 Mths Revenue 499 511 994 EBIT 56 48 95 Margin 11.2% 9.4% 9.6% Funds 793 850 789 Return on Funds (annualised) 14.1% 11.3% 12.0% HON He ys ay Vy Ze yy Wy We Ge ae Te LEG LE a Yj dy Vy Wn Vy 2 Lo Wy Uy i 7 Ly Vy ji LM LM MM Le
Slide 19: Laminates & Panels
19 Laminates & Panels QO Performance well ahead of the same period last year Q Solid performances in QLD and WA offsetting weaker performances in NSW and VIC QO The New Zealand market remained strong Q Australian warehouse consolidations improving logistics efficiencies Q Joint ventures in WA perfor
Slide 20: Profit After Tax
Profit After Tax $m EBIT Interest Tax Minority Interests Profit After Tax a 7 Vy Vy) Ly Uy Ve Le Ly ee y y Hee -12 Dec 2003 6 Mths 216 -36 -58 -11 20 -124 iy MW ys ys Many iN, Wi Lo Ce es Te LN Le oe . He iy ee He ea 161 111 240 yy wy 7 7 He oy yy Ne sone Gu Uys ey PSI EES ie EAI EE ae, 7 7 i 7 7 Wi
Slide 21: Simplified Balance Sheet
21 Simplified Balance Sheet Dec Jun 2004 2004 NZ$m NZ$m Assets Current Assets 1182 1022 Fixed Assets 1048 1023 Intangibles & Goodwill 334 342 Provision for Deferred Taxation 83 86 Investments 163 159 Total Fletcher Building Assets 2810 2632 Liabilities Current Liabilities 810 666 Net Debt 374 448 Ca
Slide 22: Key Ratios: Total Shareholder Return
22 Key Ratios Total Shareholder Return (TSR)** 50%) 40% 1 30% 4 HA 20% | 10%] 0%* Jun 01% Jun 02 Jun 03 Jun 04 Dec 04 *** * June 61 is the return for the 3 months from separation date ** TSR calculated ((Gross Dividend Paid + Movement in Share Price)/Opening Share Price) *** For the six months Yi, L
Slide 23: Key Ratios: Debt/Debt Plus Equity
Key Ratios Debt/Debt Plus Equity % 80 70 60 50 40 30 20 10 Dec jun O01 O1 02 02 03 03 04 Le ey pp vo YG ye Way Ly We nn We | LL L ye, yy a a ee TEA EE EEE EEE EE EE gy Ly Ly Wy VY YL ee a ee ee i MME i IanO Ly ES . . ae . = fey 203 a Ae Le ee ae eee ae ae ee Hee Le ee ae a oe He He Le He OMI LEMEN a
Slide 24: Key Ratios: Return on Average Equity
24 Key Ratios Return on Average Equity* % 30 20; 10; 10; 20, 30, 40+ -50-+ Jun O01 Jun 02 Jun 03 Jun 04 Dec 04 * Net earnings after capital notes interest/shareholders funds rappers oop 4 anna manana my LO OO ITE LT Wy Wy Uy WM Ye ae ee 7 Me ee Hey YY Wi yy MGT Ey yy Ye iy Lye Wig) Wi ty He SUE: Hy
Slide 25: Key Ratios: Return on Average Funds
25 Key Ratios Return on Average Funds* % 355 307 254 207 0+ _# Jun 01 Jun 02 Jun 03 Jun 04 Dec 04 * EBIT/(Average net debt+equity+capital notes) - deferred tax asset ieee Ly yy uy i WME 7 ay yy i iy) Ma eee te iy Liye Yi, MM UU yD Lo iy Ge y L Wa | - . 7 _ a yy a 7 DL aa LN Vy LG Li 7 hLhLrrrFLFLLUL
Slide 26: Key Ratios: Interest Cover
26 Key Ratios Interest Cover* (times) ss DoD DO 8 N Oo Jun01 Dec OL Jun02 DecO2 Jun03 Dec 03 Jun 04 Dec 04 * EBITDA pre unusuals/interest paid including capital note interest WY, NON LGN i, ny SMM y, Ly Le LM _ LD Dy Wi i Vy ny LL a _ Ay a Ly i yy Uy ee Wig ii y Lo Ay ye ey 7 Wy To a TAI EEN ie Ty L
Slide 27: Net Term Debt Movement
27 Net Term Debt Movement 600 448 yy 374 400 | i 42 19 li 100 —- (4) | ae (7) NZ$ Millions 200 7 oO4 T T T T T T T T 5 rm) a x £ 8 5 o ra) Oo 2 2 2 c c ci] Tat v a a o oO GD fal =] u fo = o Oo £ z c i) o £ © a D 2 = ‘= c é € o faa) = 3 g c< yz > 2 o % 5 ra) rs) re) © iS) oO = wp g UENO EE LE EEE EEE
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Slide 29: Strategic Agenda
29 strategic Agenda ENED i WES SSG: TEE ODOT ODED ODED OLED DOD END ODDO DDO END ODED ED UATE AE CURD REDE ON EEO DEI AT WML: yn 7 ey yo aUEwUwEEESSETT spears, Dy ii LV a Zi yy Ly co ee ay GU Wy ta ah es Vy i Mais i Bs Wy pig has NGS Ay VW es AE A ST AO UO Ba "BE La ey Le 7 We Gy: Je gy Vig ae ay (
Slide 30: Earnings Reliability
30 ==e5 ESSE S Earnings Relia Q} Our spread of activities has reduced earnings volatility Q Decline forecast in residential is not overwhelming () Non-residential and infrastructure markets will still be strong in 2006 Q) Continue to improve earnings other than through volume (e.g. Laminex) LEMMA LD
Slide 31: New Zealand: Value of Work Commenced
New Zealand Value of Work Commenced NZ$ million 16000 14000 12000 10000 8000 6000 4000 2000 if ves iy y | y ya ae yy ae Forecast 7 VW Me es Hee Bey He Ty ye Uy LE LL Le ae ee 7 Mie MI Me a Le ey - We 4 AA Mk Pie his f¢ yy - Me HMMA c 7 Ly i Hy a i ee a Li Ly We vy Me Ly L ig Le naga ey Be Ly Le Wy C
Slide 32: Australia: Value of Work Commenced
32 Australia Value of Work Commenced Forecast 60 ASBillion 1995 1996 1997 1998 1999 2000 - A - an 7 vt wn © Nw o.|6U6°8 ° o i=] ° o |S ° So ° o N N N N N N 2001 Dwelling (Incl A&A) Non-Dwelling Source = chrapnel omame in Para ney December 2004 oe i MANY Le Me yy yy We Wy Ni Wy Gi ey Ly, “Gi Ly Uy Gy
Slide 33: Growth Opportunities
33 Growth Opportunities QO) Lifting capacity in a number of business units Cement R.M.C. Aggregates Roof Tiles Insulation Steel Particle Board & MDF yy Co Wy a VE We iy ——y>—>y>—————y——— EY Z, ah My OU Ne, iy ie ii GME Hy LLL LLAMA vie Bey Ae We He Uo ee Wy, ie Ly WW, Hy Ui 7) Ve iy yy WY) Ce WM Hy
Slide 34: External Growth Opportunities
34 J i External Growth Opportuniti QO We have the financial capacity QO Amatek a possibility QO} Should be resolved one way or other by end of February Q Other options but not short term i) Wi i yy Ly i ve Le oo 7 yy iy, ae LMS Le Le i ie Wes ay Vig iy ay ) i Wy ii ay a yy Hey Hp Ay ey Hey ae WA i 7
Slide 35: Outlook
35 Outlook Q) Wigs He Vy | ie i ay Ty Hae NZ and Australia residential markets will soften this year, but from record high levels Non-residential and infrastructure outlook is strong for next two to three years in New Zealand Full year outlook $525-545 million EBIT LLL EOL, ie OE RIC oy WOMAN, Y yy,
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