Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (June 2022)
12 slides from Fletcher Building's investor day presentation, June 2022
Slide 1: Agenda
Agenda 1. Building for tomorrow Ross Taylor / Bevan McKenzie 2. Building Products Hamish McBeath 3. Distribution Bruce McEwen 4. Concrete Nick Traber 5. Australia Dean Fradgley 6. Residential and Development Steve Evans 7. Concluding Remarks Ross Taylor Fletcher Building Limited
Slide 2: Residential & Development business unit overview
Residential & Development Continuing to grow and shape the businesses, building off our well- established strengths and market brands Centred around Auckland & Christchurch, delivering new master-planned communities at scale for the last 10+ years Existing communities continue to show great dema
Slide 3: A strong base established; EBIT margins to return to c.20%
Residential & Development A strong base established with performance driven by measured growth; anticipating that EBIT margins will return to c.20% EBIT ($m)1 Residential EBIT1 Margin & ROFE3 (%) Key Non-financial Measures Residential includes Apartments, Clever Core FY19 YTD22 c.$215m c.30.1% and V
Slide 4: Pragmatic financial assumptions and strong product positioning through-the-cycle
Residential & Development Combination of pragmatic financial assumptions & strong product positioning gives us confidence our Residential Development business is well-positioned through-the-cycle Factoring in a c.10% drop in EBIT margins in FY23 (vs. FY22F) due to EBIT Margin % a combination of pr
Slide 5: Growing to 1,000 homes p.a. in Auckland & Christchurch
Residential & Development Growing to 1,000 homes p.a. in Auckland & Christchurch, strengthening position and providing prudent / sensible market presence Distribution of FY22F residential sales Growing from a strong base 40% Existing locations continue to show robust demand, and Auckland 30% media
Slide 6: Targeted locations and prudent fundamentals support our Apartments business
Residential & Development Targeted locations and prudent fundamentals support our Apartments business Auckland densification providing significant opportunities in non-central Auckland Apartments in non-CBD Locations but inner urban locations, where we already have a market presence and higher den
Slide 7: Retirement adding to our communities and expanding our product reach
Residential & Development Retirement adding to our communities and expanding our product reach A new offering for 70+ year old residents inside our established master-planned communities, targeting retirees wanting independent living with ability to access care through a healthcare partner A sig
Slide 8: Offsite manufacturing delivering speed & volume benefits
Residential & Development Offsite manufacturing delivering speed & volume benefits; high level of IP established Third year of production, with c.100 homes in FY22F and Assembling Clever Core panels at Whenuapai c.250 homes in FY23F External customer sales through Kāinga Ora & Group Home Builder
Slide 9: Industrial Development blending rehabilitation & upgrade of legacy FB sites
Residential & Development Industrial Development blending rehabilitation & upgrade of legacy FB sites with new opportunities Recent development income through decontamination & Kauri Rd, Whenuapai mixed Industrial & Residential development repositioning of FB assets at Emu Plains, Rooty Hill & Gai
Slide 10: Strong land pipeline with through-the-cycle perspective
Residential & Development Strong land pipeline with through-the-cycle perspective on land purchases and WIP base Strong land pipeline and through-the-cycle perspective on Work-In-Progress (WIP) will continue to grow & get efficient, purchases but has off-ramps if market does not support c.5,6001 l
Slide 11: Growth outlook underpinned by great locations, diversified product and community offering
Residential & Development Growth outlook underpinned by great locations, diversified product and our community offering Division well-positioned in terms of product price points, locations, range Total Volume of Residential Units Taken To Profit of products to deliver consistent through the cycle
Slide 12: Questions
Questions Page 89 | Fletcher Building Limited Investor Day Presentation | © June 2022