Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (October 2005)
30 slides from Fletcher Building's investor presentation, October 2005
Slide 1: Analysts Tour of Sydney Operations
ANALYSTS TOUR OF SYDNEY OPERATIONS
Slide 2: Cautionary Statement
Cautionary Statement This 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 differ materiall
Slide 3: Business Description
BUSINESS DESCRIPTION
Slide 4: PlaceMakers Vision
PLACEMAKERS VISION To be the World Class supplier of choice for builders and DIY project customers.
Slide 5: Key Metrics
KEY METRICS • Number of Outlets - 55 • Number of Staff - 2825 • 2005 Revenue - $920M • 2005 EBIT - $81M • Funds Employed - $120M • EBIT:Funds Employed - 67.5%
Slide 6: Location Map
LOCATION MAP Kaitaia ‘Whangaparaca Albany, Auckland Wairau Park, Auckland Cock Street . Auckland Waiheke Island Wew Lynn, Ruck Westgate, Ruck Mt Wellingotn, Auckland Pakuranga, Auckland Takanini, Auckland Nelson Kerikeri Riccarton, Cranford Seaview, Wellington anit Wel Lington Evans Bay, Wellington
Slide 7: Joint Venture Partnership
JOINT VENTURE PARTNERSHIP • 50.1% Fletcher ownership of each store • Joint Venture Partners responsible for: Customer Relationship Staff Trading Performance Working Capital • Fletchers responsible for: Brand Property Terms of Trade Systems
Slide 8: The Market
THE MARKET
Slide 9: New Zealand Builders Merchant Market
NEW ZEALAND BUILDERS MERCHANT MARKET (2004) 5 1.6 4.4 4 • The market has been Billions of defined as those Dollars 3 0.3 0.5 categories sold by 0.6 PlaceMakers 2 0.5 1 0.9 • Total permitted construction spend in 0 New Zealand in 2004 was $9.9B, including Bunnings / Total market Other* ITM Placemaker
Slide 10: Trading Performance
TRADING PERFORMANCE
Slide 11: Historical Performance – Sales Revenue
HISTORICAL PERFORMANCE – SALES REVENUE PlaceMakers Total Company Revenue 2001 - 2005 1,000.0 900.0 800.0 700.0 600.0 $M 500.0 400.0 300.0 200.0 100.0 - 2001 2002 2003 2004 2005
Slide 12: Historical Performance - EBIT
HISTORICAL PERFORMANCE - EBIT PlaceMakers Total EBIT 90.0 80.0 70.0 60.0 50.0 $M 40.0 30.0 20.0 10.0 0.0 2002 2003 2004 2005 FDL JV
Slide 13: Revenue Split
REVENUE SPLIT 100.0% 80.0% 60.0% % Split 40.0% Charge Sales Cash Sales 20.0% 0.0% 2001 2002 2003 2004 2005 Year
Slide 14: Revenue by Category
REVENUE BY CATEGORY Revenue by Category STRUCTURAL TIMBER MANUFACTURING OTHER PLASTERBOARD BATHROOM, KITCHEN & FIBRE CEMENT CLADDING & LAUNDRY SHEETS PAINT FASTENINGS PLYWOOD CONCRETE POWER TOOLS
Slide 15: Historical Performance – EBIT Share
HISTORICAL PERFORMANCE – EBIT SHARE PlaceMakers Total Company Share of EBIT 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2002 2003 2004 2005 FDL JV
Slide 16: Return on Equity by Partner
RETURN ON EQUITY BY PARTNER Share of Returns 180% 160% 140% 120% 100% JV ROE FDL ROE 80% 60% 40% 20% 0% YE June 02 YE June 03 YE June 04 YE June 05
Slide 17: New Dwelling Consents
NEW DWELLING CONSENTS NZ - New Dwelling Consents 35000 30000 25000 20000 15000 10000 5000 0 2001A 2002A 2003A 2004A 2005A 2006F 2007F Source: Infometrics
Slide 18: Growth
GROWTH
Slide 19: New Stores - Riccarton
NEV SHORES = RICCARTON Yeo : i I WUT = at B - xiiow how. Can 3
Slide 20: New Stores - Riccarton
NEW STORES - RICCARTON Riccarton Revenue 66,000.0 65,000.0 64,000.0 63,000.0 62,000.0 61,000.0 60,000.0 59,000.0 58,000.0 57,000.0 56,000.0 Sales Oct 03 to Jun 04 Oct 04 to Jun 05
Slide 21: New Stores – Queenstown
NEV SHORES = QUEENSTOWN PlaceMakers Know how. Can do.
Slide 22: New Stores – Queenstown
NEW STORES – QUEENSTOWN Queenstown Revenue 12,000.0 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 Sales Dec 03 to Jun 04 Dec 04 to Jun 05
Slide 23: New Stores – Mt. Wellington
NEW STORES – MT. WELLINGTON
Slide 24: New Stores – Mt. Wellington
NEW STORES – MT. WELLINGTON Mt Wellington Revenue 23,000.0 22,500.0 22,000.0 21,500.0 21,000.0 20,500.0 20,000.0 Sales Dec 03 to Jun 04 Dec 04 to Jun 05
Slide 25: New Stores – New Lynn
NEV) SHORES = NEV IEYININ PieteMakors Know how. Can do.
Slide 26: New Stores – New Lynn
NEW STORES – NEW LYNN New Lynn Revenue 25,000.0 20,000.0 15,000.0 10,000.0 5,000.0 0.0 Sales Oct 02 to Jun 03 Oct 03 to Jun 04 Oct 04 to Jun 05
Slide 27: Store Upgrades and New PlaceMakers Facilities to June 2006
STORE UPGRADES AND NEW PLACEMAKERS FACILITIES TO JUNE 2006 1: Northland Auckland - 2: North - 3: Central / West - 4: South 6: Bay of Plenty 5: Waikato / Coromandel 7: East Cape 10: Taranaki 8: Taupo 9: Hawke’s Bay 10: Manawatu / Ruapehu 14: Tasman 12: Wairarapa 13: Wellington 16: Westland 15: Marlbo
Slide 28: High Level Business Systems Projects
HIGH LEVEL BUSINESS SYSTEMS PROJECTS • Customer Programme • e Business Programme • Logistics Programme • Legacy System and Infrastructure Improvement Programme
Slide 29: Key Objectives
KEY OBJECTIVES Ranging Cash: DIY Card/Advertising & Promotions Trade: Sales Order Project/LIFT/Advertising & Promotions/Key Accounts New Products SALES ENABLERS Frame & Truss Store Network Development Terms of Trade Systems Development MARGINS Health & Safety COSTS Supply Chain Productivity
Slide 30: EBIT:Sales Ratios
EBIT:SALES RATIOS EBIT:Sales Ratios 10.0% 9.0% 8.8% 8.8% 8.0% 7.0% 6.0% 5.0% 4.0% 4% 3.0% 2.0% 1.0% 0.0% PlaceMakers Bunnings Carters Source: Company Reports
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