Fletcher Building Limited · NZX:FBU
Fletcher Building — Australian Steel Convention 2011
24 slides from Fletcher Building's conference presentation, Sep 13, 2011
Slide 1: Australian Steel Convention 2011
FLETCHER BUILDING For personal use only AUSTRALIAN STEEL CONVENTION 13 September 2011 2011 Jonathan Ling Chief Executive Officer
Slide 2: Fletcher Building at a glance
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 2 Fletcher Building at a glance For personal use only 2001 2011 Revenue (NZ$billion) 2.3 7.4 Operating Profit 94 596 (EBIT NZ$million) Market Capitalisation (NZ$billion) 0.78 5.1 Employees 7,000 >20,000
Slide 3: Fletcher Building at a glance
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 3 Fletcher Building at a glance For personal use only 2001 2011 Market Ranking: -NZX 17 1 -ASX 54 Share Price $2.26 $7.73 Total Shareholder Return 484%* * Based on period from 26 March 2011 to 30 June 2011
Slide 4: Safety performance
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 4 Safety performance For personal use only TRIFR 70 60 50 Number 40 30 20 10 0 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11
Slide 5: Fletcher Building Then and Now
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 5 Fletcher Building Then and Now For personal use only Revenue 2001: Revenue 2011:* 1% 12% 14% 47% New Zealand New Zealand Australia Australia 39% Rest of World Rest of World 87% * Pro-forma combined Fletcher Building and
Slide 6: Fletcher Building Shareholder Base
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 6 Fletcher Building Shareholder Base For personal use only 5% 6% 18% 38% New Zealand Australia North America Europe Asia 33%
Slide 7: Market leading businesses
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 7 Market leading businesses For personal use only Building Laminates Distribution Infrastructure Steel Crane Products & Panels Pipelines – Plasterboard Building Materials Construction The Laminex Coated Steel Manufacture
Slide 8: Successful diversification has driven out-performance
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 8 Successful diversification has driven out-performance For personal use only Formica 500 Fletcher Building Share Price NZX50 Index ASX200 Industrials Index Crane 400 Amatek Global Financial Index Crisis 300 Tasman Lamine
Slide 9: The Canterbury Rebuild
Australian Steel Convention 2011| Fletcher Building | © September 2011 | Page 9 Australian Steel Convention THE CANTERBURY For personal use only REBUILD
Slide 10: Fletcher EQR
10 Fletcher EQR For personal use only • Appointed in October 2010 to act as agent for EQC • Project management role • Brief covers residential repair claims: between $10,000 and $100,000 plus gst • Geographical scope: Christchurch, Selwyn, Waimakariri, Hurunui, Ashburton and Timaru • Remuneration: p
Slide 11: Quantum and Timing
11 Quantum and Timing For personal use only • Project Size o Not yet quantified but best estimate currently approximately $NZ 2.5B o Caution needs to be applied in placing reliance on estimates • Project Programme o A number of factors will determine programme – Average size of each job – After shoc
Slide 12: Materials Supply
12 Materials Supply For personal use only • Materials comprise est. 35-50% of total value o Effects of multiple events still to be determined • No favoured position for Fletcher Building subsidiaries o Supply is fully contestable o Contractors maintain their own links to supply base July 2011
Slide 13: Current Status
13 Current Status For personal use only Scorecard – to Friday 6 September Hubs established 18 (consistent with original planning) 1 more in process of establishment Contracting firms 851 accredited – well ahead of plan People 6806 contractors, trades people and others inducted Emergency repairs Over
Slide 14: Going Forward
14 Going Forward For personal use only • Competition for skilled labour once all construction sectors commence • Accommodation • Inflationary pressure • Start / stop implications of after shocks July 2011
Slide 15: Infrastructure Alliance
15 Infrastructure Alliance For personal use only • To be established between Fletcher Construction, CityCare, MacDow, Fulton Hogan and Downer, with each having a 20% share. • Christchurch City Council and CERA are also full participants in the Alliance • The estimated value is between $2b and $3b wi
Slide 16: Infrastructure Alliance
16 Infrastructure Alliance For personal use only The Alliance concept emerged after the 22 Feb 11 earthquake when stakeholders wanted a procurement model for the infrastructure rebuild that: • is faster; • delivers better value for money; • manages standards and resources across the city; and • prov
Slide 17: Infrastructure Alliance
17 Infrastructure Alliance For personal use only Scope • Over 200km roads to rebuild • Over 800km of pipes to rebuild • Manholes and pumping stations • Bridges, retaining walls, river banks • Curbs, footpaths and berms • Traffic islands, traffic lights, barriers and lightstands • Parks, reserves and
Slide 18: Other opportunities in Engineering
18 Infrastructure For personal use only Other opportunities in Engineering • Port of Lyttelton - >$300m • Re-levelling buildings & houses • Piling new buildings • Ground remediation – liquefaction; stone columns • Other councils – Selwyn, Waimakariri Including: July 2011
Slide 19: Commercial Building
19 Commercial Building For personal use only • First phase: Demolition Grand Chancellor is the first of many hundreds, perhaps even 1000 demolitions • Construction phase to follow resolution of: o Geotechnical issues o Resolution of new Code o Planning input, debate and resolution o Insurance claims
Slide 20: Commercial Building
20 Commercial Building For personal use only CBD and Suburbs • Outside CBD o Progress less constrained • Overall commercial rebuild expected to have a longer tail than other sectors July 2011
Slide 21: NZ Emissions Trading Scheme
Australian Steel Convention 2011| Fletcher Building | © September 2011 | Page 21 Australian Steel Convention NZ EMISSIONS TRADING For personal use only SCHEME
Slide 22: NZ Emissions Trading Scheme
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 22 NZ Emissions Trading Scheme For personal use only • Introduced 1 July 2011 for energy, fuels and industry • Base year 2009 • Fix price of $25 per tonne until 31 December 2012 • Discount of pay 1 of 2 until 31 December
Slide 23: NZ Emissions Trading Scheme
Australian Steel Convention 2011 | Fletcher Building | © September 2011 | Page 23 NZ Emissions Trading Scheme For personal use only • Fletcher Building has liability for approximately 1.5 million tonnes CO2 • Initiated substantial greenhouse gas reduction program • Substituted wood waste for black c
Slide 24: Australian Steel Convention 2011
FLETCHER BUILDING For personal use only AUSTRALIAN STEEL CONVENTION 13 September 2011 2011 Jonathan Ling Chief Executive Officer