Fletcher Building Limited · NZX:FBU

Fletcher Building — Investor Presentation (September 2010)

40 slides from Fletcher Building's investor presentation, Sep 1, 2010

Slide 1: Investor Presentation September 2010
1 For personal use only Investor Presentation September 2010 Bill Roest Chief Financial Officer Investor Presentation| Fletcher Building | © September 2010
Slide 2: Disclaimer
2 For personal use only Disclaimer 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 di
Slide 3: Agenda
3 For personal use only Agenda • Company and Market Overview • Strategy • Divisional Performance • Financial Results • Outlook Investor Presentation| Fletcher Building | © September 2010
Slide 4: Company and Market Overview
4 For personal use only Company and Market Overview Investor Presentation| Fletcher Building | © September 2010
Slide 5: Fletcher Building at a glance
5 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook Fletcher Building at a glance For personal use only Retail New 19% Zealand 23% Asia 5% Europe 6% North Australia America 30% 16% * As at 30 June 2010 * Year ended 30 June 2010 Investor Presentation| Fletche
Slide 6: Market leading businesses
6 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook Market leading businesses For personal use only Building Distribution Infrastructure Laminates Steel Products & Panels Steel Plasterboard Building Materials Construction The Laminex Group Coated Steel Insul
Slide 7: Most residential construction markets have improved, but commercial markets weak
7 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Most residential construction markets have improved, but commercial markets weak June 2010 June 2009 June 2008 10/09 Building Consents 12 months 12 months 12 months %Mvmt New Zealand -
Slide 8: New Zealand emissions trading scheme
8 Company & Market Overview | Strategy | Divisional Performance| Financial Results | Outlook For personal use only New Zealand emissions trading scheme • New Zealand’s emissions trading scheme (ETS) extended coverage to industrial and transport emissions on 1 July, 2010. • Most of our operations tha
Slide 10: Fletcher Building has a vertically integrated value chain
10 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook Fletcher Building has a vertically integrated value chain For personal use only Laminates Building Other Steel Concrete Manufacturers & Panels Products Dedicated Shared Other Construction Distribution Dist
Slide 11: Geographic exposure to end markets
11 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Geographic exposure to end markets Summary Residential Commercial Infrastructure Total 51% 25% 25% 100% New Zealand 57% 29% 13% 100% Australia 49% 51% 0 100% Rest of World Total Group
Slide 12: Strategy
12 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Strategy Longer term strategy continues to be: • improve earnings reliability • maintain and improve internal capabilities - increased focus on growth oriented capex - business transf
Slide 13: NZ's economic fundamentals are sound
13 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only NZ’s economic fundamentals are sound • Banking system has weathered GFC well – no government bailouts required • Government stimulus measures have been modest – longer term burden on
Slide 14: Divisional Performance
14 For personal use only Divisional Performance Investor Presentation| Fletcher Building | © September 2010
Slide 15: Strong earnings recovery in Laminates & Panels, lower volumes in Infrastructure and Steel
15 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Strong earnings recovery in Laminates & Panels, lower volumes in Infrastructure and Steel impacted earnings EBIT NZ$million1 1. Earnings before interest, tax, and unusual items Invest
Slide 16: Earnings commentary
16 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Earnings commentary • Net earnings aided by improved housing starts in NZ and Australia. • Continued strong infrastructure spending by NZ and Australian governments. • Commercial acti
Slide 17: Building Products
17 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Building Products Plasterboard Winstone Wallboards • New Zealand’s sole manufacturer and leading supplier of gypsum plasterboard Insulation Fletcher Insulation|Tasman Insulation NZ|Fo
Slide 18: Building Products result
18 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Building Products result June 10 June 09 • Plasterboard benefited from NZ$m 12 Mths 12 mths %∆ improved NZ housing starts in Sales 798 771 +4 second half and from cost-out initiatives
Slide 19: Building Products: growth in insulation volumes; plasterboard benefitted from NZ housing
19 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Building Products: growth in insulation volumes; plasterboard benefitted from positive NZ housing trend Gross Sales June 10 June 09 NZ$m 12 mths 12 mths %∆ Volume ∆ Price ∆ EBITDA ∆ N
Slide 20: Distribution
20 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Distribution PlaceMakers The premier suppliers of building materials to New Zealand’s commercial and residential construction markets • 62 outlets across New Zealand trading as PlaceM
Slide 21: Distribution result
21 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Distribution result June 10 June 09 • Sales stable year over year NZ$m 12 Mths 12 mths %∆ with a pick-up in activity seen Sales 878 883 -1 in second half from increase in residential
Slide 22: Infrastructure
22 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Infrastructure Concrete New Zealand Firth|Humes Pipeline Systems|Golden Bay Cement|Winstone Aggregates • 15% of NZ aggregates markets • 55% of NZ cement market • 34% of NZ readymix co
Slide 23: Infrastructure result
23 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Infrastructure result NZ Concrete • Lower volumes in cement, June 10 June 09 aggregates, readymix and NZ$m 12 mths 12 mths %∆ concrete pipe. Sales 2,020 2,052 -2 • Continued softness
Slide 24: Infrastructure: lower concrete and related volumes in NZ and Australia
24 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Infrastructure: lower concrete and related volumes in NZ and Australia Gross Sales June 10 June 09 NZ$m 12 mths 12 mths %∆ Volume ∆ Price ∆ EBITDA ∆ New Zealand - NZ Concrete 636 697
Slide 25: Property activities include quarry end use, residential and surplus assets
25 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Property activities include quarry end use, residential and surplus assets EBIT NZ$m 2H 10 1H 10 2H 09 1H 09 Quarry end use 0 0 0 0 Residential 13 5 8 4 Surplus property assets 0 2 0
Slide 26: Laminates & Panels
26 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Laminates & Panels Laminex • Leading high pressure laminate & decorative surfaces • Estimated Australasian market shares – Decorated board – No.1 – Medium density fibreboard – No.1 –
Slide 27: Laminates & Panels result
27 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Laminates & Panels result Laminex June 10 June 09 • Australian domestic volumes NZ$m 12 mths 12 mths %∆ higher due to improved Sales 1,930 2,076 -7 residential, export volumes EBITDA
Slide 28: Laminates & Panels: volumes growth in Australia and Asia
28 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Laminates & Panels: volumes growth in Australia and Asia, offset by flat or weaker volumes in other regions Gross Sales June 10 June 09 NZ$m 12 mths 12 mths %∆ Volume ∆ Price ∆ EBITDA
Slide 29: Formica: continued growth in Asia, North America and Europe stabilising
29 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Formica: continued growth in Asia, North America and Europe stabilising EBIT US$m1 2H 10 1H10 2H09 1H09 Asia 8 12 9 10 North America 8 3 5 -3 Europe 6 -3 -1 1 Corporate -5 -5 -6 -4 EB
Slide 30: Steel
30 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Steel Rollforming and Coated Steel Pacific CoilCoaters|Stramit Building Products|Dimond • Approx. 24% of Australian market (Stramit) • Major player in New Zealand roofing market (Dimo
Slide 31: Steel result
31 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Steel result June 10 June 09 NZ$m 12 Mths 12 mths %∆ • Volatile operating Sales 1,172 1,321 -11 environment with uncertain demand and declining prices. EBITDA1 107 175 -39 • Long stee
Slide 32: Steel: prices lower, volumes typically weaker
32 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Steel: prices lower, volumes typically weaker Gross Sales June 10 June 09 NZ$m 12 mths 12 mths %∆ Volume ∆ Price ∆ EBITDA ∆ New Zealand - Long Steel 272 361 -25 ↑ ↓ ↓ - Coated Steel 1
Slide 33: Financial Results
33 For personal use only Financial Results Investor Presentation| Fletcher Building | © September 2010
Slide 34: 2010 annual results summary
34 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only 2010 annual results summary June 2010 June 2009 NZ$m 12 months 12 months % Change Sales 6,799 7,103 -4 EBITDA¹ 727 769 -5 EBIT¹ 521 558 -7 Net earnings1 301 314 -4 Unusual items after
Slide 35: Capital expenditure – focus shifting to growth-orientated initiatives
35 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Capital expenditure – focus shifting to growth-orientated initiatives • Stay-in-business capex approx 60% of depreciation. • Growth capex includes acquisitions: - ACP acquisition alre
Slide 36: Net debt levels have continued to reduce
36 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Net debt levels have continued to reduce Investor Presentation| Fletcher Building | © September 2010
Slide 37: Key Ratios
37 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Key Ratios Total Shareholder Return (TSR) Debt/Debt Plus Equity Percentage Percentage 61 40 42 24 14 Jun 05 Jun‐06 Jun‐07 Jun‐08 Jun‐09 Jun‐10 ‐43 Return on Average Equity Return on A
Slide 38: Debt maturity profile
38 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Debt maturity profile • Undrawn credit lines of $1,130 million. • Average maturity of debt is over 5 years. • Average interest rate on debt is 7.3%. • 93% of borrowings are at fixed r
Slide 40: Outlook 2011
40 Company & Market Overview | Strategy | Divisional Performance | Financial Results | Outlook For personal use only Outlook 2011 Caution required in formulating outlook for 2011: New Zealand: • Slow and gradual continuing recovery in residential building activity. • Commercial construction activity

Fletcher Building — Investor Presentation (September 2010) on 6ix

Fletcher Building — Investor Presentation (September 2010)

Slide 1: Investor Presentation September 2010

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Company and Market Overview

Slide 5: Fletcher Building at a glance

Slide 6: Market leading businesses

Slide 7: Most residential construction markets have improved, but commercial markets weak

Slide 8: New Zealand emissions trading scheme

Slide 9: Strategy

Slide 10: Fletcher Building has a vertically integrated value chain

Slide 11: Geographic exposure to end markets

Slide 12: Strategy

Slide 13: NZ's economic fundamentals are sound

Slide 14: Divisional Performance

Slide 15: Strong earnings recovery in Laminates & Panels, lower volumes in Infrastructure and Steel

Slide 16: Earnings commentary

Slide 17: Building Products

Slide 18: Building Products result

Slide 19: Building Products: growth in insulation volumes; plasterboard benefitted from NZ housing

Slide 20: Distribution

Slide 21: Distribution result

Slide 22: Infrastructure

Slide 23: Infrastructure result

Slide 24: Infrastructure: lower concrete and related volumes in NZ and Australia

Slide 25: Property activities include quarry end use, residential and surplus assets

Slide 26: Laminates & Panels

Slide 27: Laminates & Panels result

Slide 28: Laminates & Panels: volumes growth in Australia and Asia

Slide 29: Formica: continued growth in Asia, North America and Europe stabilising

Slide 30: Steel

Slide 31: Steel result

Slide 32: Steel: prices lower, volumes typically weaker

Slide 33: Financial Results

Slide 34: 2010 annual results summary

Slide 35: Capital expenditure – focus shifting to growth-orientated initiatives

Slide 36: Net debt levels have continued to reduce

Slide 37: Key Ratios

Slide 38: Debt maturity profile

Slide 39: Outlook

Slide 40: Outlook 2011