Slide 1: Half Year Results 2007
oS Te a _ _ iy . yy Cy 7 a _ yy Q yy Me wee ae LL i . ve | yp — a Ly Ll a. ee ee 7 Ve ay Gal ey yy, i We vy yy i Ly ey Lo vy 7 Ue 7D _ y 7 ) a y . i“ ae Wd L Log es Le Ly y 7 UD Le e ae Ly LL 7 7 a i i i a Fletcher j44 February 2007 Iding Limited Half Year Results 2007
Slide 2: Disclaimer
i 7 Ly yy ae _ Lo) 7 i oy y y yyy aye ; ie V7 Lye eae i f 7 yy _ ‘ oT te [ Disclaimer _. 7 yy Ly _. | _ oS This half year results presentation | . dated 14 February 2007 provides Lo Ly _ — fr Uy 5 A Lo . 7D ae So oC .—._._._.. additional comment on the media Hy LD Wy i . Ge 7 7 | = ae . release of t
Slide 3: Highlights
tghtights Le : ay < TH a ee Ae TS . ap Pani yO _. iy Lo Vv ae ce Hag vo Geographic and product diversification continues to deliver improved earnings despite softer markets Interim dividend increased to 22cps - the 10% consecutive dividend increase TSR of 24% for the six months _ Capital Expenditure
Slide 4: Summary of Results
Summary of Results Dec Dec 2006 2005 $m 6 Mths 6 Mths <u Ra RR OREO EN RR RCRA RS OREO INR CRRRaaRR cnn ER CaRRCReE cm RRRERNIRcRCReNnRNERRE Sales 2980 2764 EBITDA 418 406 EBIT 340 335 Net Earnings 193 190 EPS (cents) 41.1 40.9 Dividend cps 22.0 19.0 ~~ Dh Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" el 0 EE Jun
Slide 5: Geographic Diversity
Geographic Diversity Operating Earnings $NZ 6 Months Dec 06 6 Months Dec 05 Other 5% Australia 32% 30% 2 7 NZ 63% _. -—L—L_——— 7 Le 7 LD De . Lo a Februaey, > rtrrrtt— (”tO”O*C*=‘“*”E | Bloteh ar / Dra ae ae ue Ls y : Ga ir a
Slide 6: Market Diversity
Market Diversity Operating Earnings $NZ 6 Months Dec 06 6 Months Dec 05 Steel Steel 13% 11% Infrastructure Distribution Infrastructure istributi Distribution 36% 11% 37% 11% i i Laminate & Panels 18% Laminates & Panels 19% 21% 23% ee, as A yy , .. - >) Crt (lc cllCLCUC™ a ON OO OE
Slide 7: Strong Earnings In
Strong Earnings In EBIT $m 140 120 @ Dec 2006 a Dec 2005 100 80 60 5 40 - ee Building Products Steel Distribution Infrastructure Laminates & Panels women a nee 9g ' see LLM MOLLE LL £_£____ “knees aiunessassnamsausapaas . Da ” LL a Lo | LD 0 . Lo yy yy _ a y Vo CF 7 oe 5 Feb Le rrrrrt—“ etrt—“‘“‘“(‘
Slide 8: Building Products
LO LCF” Le | y ee a ay oy ye yy We Le Building Products
Slide 9: Building Products Results
Results Dec Dec Jun 2006 2005 2006 6 Mths 6 Mths 12 Mths Sales 344 326 629 EBIT 72 77 142 Margin % 20.9 23.6 22.6 Funds 557 477 511 Return on Funds % 27.8! 32.3 27.8 i. Proforma returns based on 6 months of F acquisitions women a nee 99 ' see LLM MOLLE LL £_£____ “knees aiunessassnamsausapaas . Da y
Slide 10: Building Products: Plasterboard
10 Building Products Plasterboard QO Volumes down slig OQ Margin pressure wi NZ residential mar ntly. th high NZ$ and slowdown in kets. 4) Performance board s increased to 48% of sales. (4) Market share maintained at 94%. Lo Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" Le as yy Le oy ly el hhh“ CU as phat ato hie
Slide 11: Building Products: Insulation
ii Building Products Insulation CL} Volumes down in Australia and New Zealand. OQ Margin pressure from imports. (J Market share loss in Australia during industry rationalisation. QO) Good progress being made in Australia on recovering performance post the integration of the two businesses. OQ) Furna
Slide 12: Building Products: Metal Roof Tiles
12 Building Products Metal Roof Tiles QO Sales ahead of last year = NZ domestic sales equivalent to pcp * Export up 24% with strong European demand « US sales also ahead of pcp. QO Despite strong NZ$, with 60% of sales exported, the financial results are ahead of last year. ip — ricerca as ¥ ’ - NIC
Slide 13: Building Products: Forman
13 Building Products Forman Q Distribution and installation of ceiling and wall systems and industrial insulation. QO Acquired on 1 December. Q Integration progressing well. —LL_-_EL nas mn Ly LLL ie ie La as Le ay oy ly Oy a _ _ a _ _ a, —.——r..—O—CiCiCiC<C‘a“(‘ CR © eg a a | cc trti“( wmUmCmCUCti“
Slide 14: Building Products: Other Businesses
14 Building Products Other Businesses QO FAL had good sales volumes but disappointing financial results from strong currency and increases in LME pricing for aluminium billet. © Tasman Sinkware had an excellent six months. Despite soft Australian residential market, performance is ahead of pcp on th
Slide 15: Steel
OLLIE, LD iy, Lo We De Steel OG y, y OG y, a es ay ee wien ae a LLL
Slide 16: Steel Results
Stee EBIT Margin % Funds Return on Funds % Results Dec Dec 2006 2005 6 Mths 6 Mths 602 550 46 38 7.6 6.9 474 439 19.4 i ~~ rrr—“—*™*s—s—s—S—SCS=*C*=*# Wy Ly Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" el hhh“ CU EE Jun 2006 _A2 Mths ay ey Le yf as danse Sian coececereneni use 16 a | cc trti“( wmUmCmCUCti“(“(‘(‘C
Slide 17: Steel: Rollforming
17 Stee Rollforming QO Stramit, Dimond and Pacific Coilcoaters benefited from strong demand with both Stramit and Pacific Coilcoaters ahead of pcp. Q Stramit’s new IT platform now fully implemented. ~~ Dh a We if ee Lo fi Z Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" “ —.——r..—O—CiCiCiC<C‘a“(‘ CR yo Pletcher: |
Slide 18: Steel: Long Steel Products
18 Steel Long Steel Products Q Financial results reflect more favourable pricing environment, although results varied across the product range, with competition in ‘cut and bend’ quite intense and wire products still under price pressure from imports. QO Transformer at Pacific Steel Mill failed in O
Slide 19: Steel: Other Businesses
19 Stee Other Businesses QO EasySteel — the steel distribution business, performed well and delivered improved financial results. QO CSP Galvanising performed consistently. ~~ Dh a We if ee Lo He Z Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" Me " 2) i ..»*. Wey tener
Slide 20: Distribution
yy og Ly a _ 7 y LL yy y y ee Le — y a ay Ly in es ie Distribution
Slide 21: Distribution Results
21 Distribution Results Dec Dec Jun 2006 2005 2006 $m 6 Mths 6 Mths 12 Mths ‘rea gee ee er naan p pena nneneraaanC lan panO Unita maaan cing eneE iti ygnneganminecner aan mennnpeniemecunnceenmamaeny Sales 518 493 956 EBIT 39 36 75 Margin % 7.5 7.3 7.8 Funds 149 128 132 Return on Funds % 52.3 56.3 56
Slide 22: Distribution
22 ibution QO Strong sales up 5% on pcp in a softer residential market. © Again some share gains, but also impact of price increases. Q Margin and cost pressures continue, but excellent earnings improvement. © Funds increase due to branch refurbishments, acquisition of Maddrens and some working capi
Slide 23: Infrastructure
on nT rrr iT ae Le 7 i, ae Cy Le y eG 1 i y es ae Le Mu Ly Ce: WE Infrastructure eg ae a LLL
Slide 24: Infrastructure Results
Infrastructure Results $m ee Margin % Funds Return on Funds % Dec Dec 2006 2005 6 Mths = rrrr—“(teP™CUC™CC*—*t=ER Ly Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" el 0 EE 24 Jun 2006 12 Mths cagneonaananananensncnnteurai a ay ey Le yf as danse 2 iain
Slide 25: Infrastructure: Golden Bay Cement
25 Infrastructure Golden Bay Cement © Good results on domestic sales which were down on pcp. Q Kiln upgrade now completed and kiln throughput up to 2500 tpd. Q Upgrade was delayed by a month, which together with commissioning issues, had a detrimental impact on production volumes and earnings. wrona
Slide 26: Infrastructure: Firth
26 Infrastructure Firth QO Readymix volumes similar to last year despite softer market. QO Masonry and paving sales continue to be below last year’s levels. © Earnings same as pcp. ~~ Dh a We if ee Lo He Z Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" “ ey i ..»*. Wey tener
Slide 27: Infrastructure: Winstone Aggregates
27 Infrastructure Winstone Aggregates QO Volumes impacted by delays in major roading projects but improved volumes on North Shore Busway project offset the majority of this. Q Better quarry management and cost control held results at same level as pcp. women a nee 9g ' see LLM MOLLE LL £_£____ “knee
Slide 28: Infrastructure: Humes and Stresscrete
28 Infrastructure Humes QO Strong margin management held earnings at pcp level. QO Good prospects for second half. Stresscrete Q Disappointing performance due to project management issues resulting in $3m reduction in earnings on pcp. QO) Good packlog 0 of work. aay a nee 9g ? LLM MOLLE LL £_£____ “
Slide 29: Infrastructure: Rocla Quarries & Pipeline Products
29 Infrastructure Rocla Quarries & Pipeline Products © Excellent results despite soft NSW housing starts and demand for sand. Q Quarries acquired in Cowra with JV partner. Q Pipeline benefited from increased subdivisional work and bridge sales. Sleeper sales were up 20% on pcp. QO Results ahead of p
Slide 30: Infrastructure: International
30 Infrastructure International Fiji QO Small operation and down on pcp as a result of the political uncertainty. Peru QO Small contribution, but down 40% on pcp. Exit strategy for both operations progressing. ~~ Dh a We if ee Lo He Z Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" “ ey i ..»*. Wey tener
Slide 31: Infrastructure: Construction
31 Infrastructure Construction QO Excellent results in a good market * Construction ahead of pcp through workload « Residential behind pcp due to timing of house completions Q Major projects underway at 30 June * Auckland University Business School =» North Shore Busway * Wellington Hospital * Stamf
Slide 32: Laminates & Panels
_ vy Lo be MSL mn V a ae Lo ee Ey oe ay 7 LL yy Lo y Le | oo ae Ne yy Ls 7 7 LD yy Le Ly oy a yo ye. oe phen ie Ve yy 7 Le a ) ae a Ly 0 . ) es i LO a es i a Laminates & Panels
Slide 33: Laminates Results
33 Laminates Dec Dec Jun 2006 2005 2006 Mths 6 Mths 12 Mths a CC Sales 553 505 EBIT 65 62 116 Margin % 11.8 12.3 11.3 Funds 869 835 920 Return on Funds % 15.0 14.9 12.6 ~~ Dh a a Ve via | Filet Mh Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" “ ey i ..»*. Cie tenet
Slide 34: Laminates
34 Laminates (9 Maintained volumes in softer markets. QO Export prices improving however volumes down as result of Taupo fire. QO Good contributions from JVs (Wespine & Dynea) although down on pcp. QO Overall earnings improvement on pcp despite input cost increases. Q Recently acquired O'Brien's per
Slide 35: Net Earnings
35 Net Earnings Dec Dec Jun 2006 2005 2006 $m 6 Mths 6 Mths 12 Mths EBIT 340 335 675 Interest 45 45 88 Tax 92 90 189 Minority Interests 10 10 19 Net Earnings 193 190 379 ~~ Dh a We if ee Lo fi Z Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" “ —.——r..—O—CiCiCiC<C‘a“(‘ CR yo Pletcher: | cc trti“( wmUmCmCUCti“(“(‘(‘C
Slide 36: Simplified Balance Sheet
36 Simplified Balance Sheet Dec Jun 2006 2006 NZ$m NZ$m Assets Current Assets 1668 1616 Fixed Assets 1534 1569 Intangibles & Goodwill 624 597 Provision for Deferred Taxation -3 29 Investments 135 129 Total Fletcher Building Assets "3958 3940 Liabilities Current Liabilities 1075 1079 Net Debt 1070 10
Slide 37: Key Ratios: Total Shareholder Return
37 Key Ratios Total Shareholder Return ( Percentage 43 Jun 014 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Dec 06 (6 mths) 1. June 01 is the return for the 3 months from separation date 2. TSR calculated a (Gross Dividend Paid + Movement in Share Price)/Opening Share Price) women a menue 9g ' see Tne LL £_£_
Slide 38: Key Ratios: Debt/Debt Plus Equity
Key Ratios Debt/Debt Plus Equity Percentage 49.2 Jun O01 Jun 02 Jun 03 Jun 04 Jun0Q5? Jun 06 = rrrr—“(teP™CUC™CC*—*t=ER Ly Oy 7 )~—rt—“‘—“_OOOCOCOCCC?F7" el LL 38 a Le Lo ag Tey oS Ly ile
Slide 39: Key Ratios: Return on Average Equity
39 Key Ratios Return on Average Equity’ Percentage 9.5 23.0 24.3 “ a = ion = Jun 02 Jund3 Jund4 Jun052 Jund06 Dec 06 (6 mths) pupecenes mes LF D7 ey ” | Te LLG Oe a es . Lo yy OO CC Lo ; oo ce Le rrrrrt—“ etrt—“‘“‘“(‘<‘<‘(‘(‘i‘<‘<‘<‘<‘<‘“<‘i‘i‘<‘<‘“(‘<‘<‘(‘é‘é‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘éywl
Slide 40: Key Ratios: Return on Average Funds
40 Key Ratios Return on Average Funds’ Percentage ae _ i Jun 03 jun 04 Jun 052 Jun 06 Dec 06 (6 mths) 41. EBIT/(Average net debt+equity+capital notes) ~ deferred tax asset 2. Restated for IFRS women a nee 9g ' see LLM MOLLE LL £_£____ “knees aiunessassnamsausapaas . Lo) yo LL a Le LD 0 . Lo yy Ly De
Slide 41: Key Ratios: Interest Cover
41 Key Ratios Interest Cover’ Times 5.8 a 3.1 Jun OL Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Dec 06 (6 mths) 1. EBITDA pre unusuals/interest paid including capital note interest ~~ Dh a We if ee Lo He Z LDL, ey i ..»*. Wey tener
Slide 42: Net Debt Movement
42 Net Debt Movement 1200) 1,061 1000 7 ae LD) 97 8007 NZ$m 6001 vest Capex less di Dividends Min Distn Cash from ops Working capital FX on AUD Debt] Actual YTD Debt women a enn eumeceimns ' see LLM MOLLE LL £_£____ “knees aiunessassnamsausapaas . We CL LG a Lge , i 0 oo Vy yy yy 7 Le Vo CF oe 5 Feb
Slide 43: Strategic Update
| a y a Le hs y 7 yy Li Ly Ly Ly LD ay yy - | y 7 yy oo ae Loe _ way yy, | oy i Ly Ly . oF y be So ey Gy Pa Vie iy LL ~ Ge | _ y i yy ay ye a ve Ly ae ey a a Ly . Ly ae a aa sa Strategic Update i L a y Ls vy WG L _ Ly y, 7, — ag _ | oy 7
Slide 44: Strategic Agenda
44 Strategic Agenda V5). = ie : ee : oe Ly Sv an oe ees ey ee a . wie a - wuss LI 7, ay ee Ve i Ls ue He EEO ys Ty _. Ce 7 a ee) J ne Le _ y ye Lea CF LO y oe 5 Feb Le rrrrrt—“ etrt—“‘“‘“(‘<‘<‘(‘(‘i‘<‘<‘<‘<‘<‘“<‘i‘i‘<‘<‘“(‘<‘<‘(‘é‘é‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘éywl
Slide 45: Earnings Reliance
45 Earnings Relia QO Company outlook should be cognisant of both product and geographic diversity. © For New Zealand - Infometrics November estimate of total volume of work commenced. () For Australia - BIS December estimate of total volume of work commenced. wronas “Essig remem ¥y ” “ ie num ee 7 ”
Slide 46: New Zealand Volume of Work Commenced
New Zealan Volume of NZ$b 7 7 Ly Ca i5 10 ay aad Lo ae a ay ae a Le 7 Z, eg ne a) ork Commenced Forecast ya ee ) | | i), ag ee di Leg “ag Le, yy oe Lo ae ee Ly, 46 ce oe a I ES es la ee a ee la ee Ll ee Ll ee Lo oe Ll ee Ll ee Ll ee Ll ee Ll ee Ll ee Ll ee Ll ay . ee,
Slide 47: Australia Volume of Work Commenced
Australia Volume of V Asb 1205 lork Commenced OEngineering construction Non-residential 10% 1% 0% -1% 100 Residential 80 60 40 bye a y a if 20 — Yearended June 2001 2002 2003 2004 2005 2006 2007f 2008F 2009f LLL. Ly Le LLL Ly CO y oy f uy 0 es a LD De a | ] a is ie LU y : se va ae ee _ be 7 ~Srt*—“‘
Slide 48: Internal Growth
48 Internal Growth Significant capex to continue in 2007 -— up to $180m more than depreciation $million Ge 7. 2007F @ Stay in Business 4Growth & Productivity | Tye y LLL ey _ yy Yi) Ie | ve ve a ae LD February ) rc“ t;w”™mCCC*' ~ . toher: a
Slide 49: Internal Growth Opportunities
49 Internal Growth Opportunities Q Significant capex spend continues. Q Projects include: * Completion of cement capacity upgrade * Particle board capacity upgrade in NZ and Australia = Resin JV » Kitchen componentry * Australian quarry expansion * Wespine capacity upgrade = Steel mill transformer a
Slide 50: External Growth Opportunities
50 External Growth Opportunities Q Acquisitions within the building sector, with the objective of strengthening our existing operations, expanding our product portfolio and improving our geographic diversity. QO) Recent acquisitions: = Forman Group - ceiling and wall systems, insulation « Maddrens -
Slide 51: Outlook
St Outlook © Residential markets in Australia and New Zealand continue to soften. 49 Growth in non-residential and infrastructure markets. Q Still comfortable with the analysts’ November consensus net earnings forecast of approximately $388 million excluding resolution of Taupo MDF Mill and Pacific
Slide 52: : . So es oe = oo = SS Oe so _ . :
7 : . So es oe = oo = SS Oe so _ . : : : — - oo oo. -_ oe — | — sss a. —s — | : — —— — Ss oe — : ooo -— Ga —... ss : ss