Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (June 2023)
9 slides from Fletcher Building's investor day presentation, June 2023
Slide 1: Construction
Construction Phil Boylen, CE Fletcher Building Limited
Slide 2: Fletcher Construction is a leading NZ focused infrastructure construction & maintenance specialist
Construction Fletcher Construction is a leading NZ focused infrastructure construction & maintenance specialist ▪ Focused on infrastructure construction & services with lower-risk order book of $2.2b ▪ Positioned in growth sectors of transport, water and marine with a strong pipeline of public-secto
Slide 3: FCC's size & focus has been reset to a lower volume of better quality work
Construction FCC’s size & focus has been reset to a lower volume of better quality work Key financial metrics1 Strong attributes ▪ Focused exclusively into the critical infrastructure c.$1.2b divisional revenue market ▪ Multi-year programmes across transport, water and @ c.2.6% EBIT margin civil wor
Slide 4: The committed forward order book sits at a strong 1.8x revenue
Construction The committed forward order book sits at a strong 1.8x revenue at average gross margins of 12% with a further preferred of c.$2.5b revenue Orderbook Profile ($bn) Profile of forward work 1.4 Total order Targeted ▪ Forward order book primarily lower-risk forms of book of growth to contra
Slide 5: Detailed programme of works, repeatable self-delivered scope
Construction Detailed programme of works, repeatable self-delivered scope Watercare Enterprise Model ▪ Partnership for the delivery of water and wastewater infrastructure for Auckland ▪ Works include upgrading and expanding network of pipes, pump stations and treatment plants ▪ $1.2b+ contract over
Slide 6: Responding to critical infrastructure requirements across the regions
Construction Responding to critical infrastructure requirements across the regions East Coast Recovery Alliance ▪ Multi-year agreement to deliver the required major civil construction work include roads, bridges & rail corridors in the Hawkes Bay Region ▪ Construction costs estimated >$850m1 over 6
Slide 7: Margin improvement through lower-risk form of contracts
Construction Margin improvement through lower-risk form of contracts How we are driving performance ▪ Driving performance through Alliance based contracts that meet specified risk profiles with two new foundation projects: ▪ Eastern Busway Auckland ($800m+ construction value) ▪ RiverLink Wellington
Slide 8: Focus is on delivering margin improvement over the medium term to get to 5% EBIT margin
Construction Focus is on delivering margin improvement over the medium term to get to 5% EBIT margin Legacy projects materially completed, teams focused on delivery of new work from a high quality 1 orderbook in critical infrastructure (water, marine, airports & roads) New & lower-risk major project
Slide 9: Medium term portfolio outlook
Construction Medium term portfolio outlook ▪ ~$172b infrastructure spend next decade, NZ govt committed ~$62b in ‘22 Budget for 2022 to 20261 MARKET ▪ Roads (44%) & water (19%) - well positioned to capture a large share of this activity ▪ Strong orderbook of $2.2b, expected to grow beyond $4b by Tar