Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (May 2013)
24 slides from Fletcher Building's investor day presentation, May 22, 2013
Slide 1: Construction Group Investor Strategy Presentation
Investor Strategy Day – Construction Group | Fletcher Building | © May 2013 For personal use only | Page 1 Construction Group Investor Strategy Presentation Graham Darlow Chief Executive Construction
Slide 2: Disclaimer
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 2 Disclaimer For personal use only 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. Becaus
Slide 3: Construction Group Position
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 3 Construction Group Position For personal use only
Slide 4: Revenue/Earnings – last five years
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 4 Revenue/Earnings – last five years For personal use only Revenue Earnings Last 5 Years Last 5 Years EQR 1% Residential Building + 14% Interiors 21% South Pacific Residential 8% 30% Building + Interiors 48% Infrastru
Slide 5: Building + Interiors
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 5 Building + Interiors For personal use only Principal contractor on major and minor vertical construction Primarily a „risk taking managing contractor‟ with some self perform capability Extensive network of suppliers
Slide 6: Building + Interiors
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 6 Building + Interiors For personal use only Revenue* $486 million Backlog $450 million Preferred $280 million Employees 554 * Year ending June 2012
Slide 7: Predictable Building Performance
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 7 Predictable Building Performance For personal use only
Slide 8: Wiri Prison – PPP opportunity
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 8 Wiri Prison – PPP opportunity For personal use only A Design and Build Role Full design and build risk Fletcher Construction contract value estimated $300 million Bid Costs Fletcher Construction’s share of bid costs
Slide 9: Infrastructure
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 9 Infrastructure For personal use only Principal contractor on major and minor infrastructure projects Mostly undertakes “Design and Construct‟, early contract involvement and alliance projects Generally “self perform
Slide 10: Infrastructure
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 10 Infrastructure For personal use only Revenue* $283 million Backlog $575 million Preferred $440 million Employees 691 * Year ending June 2012
Slide 11: SCIRT – Stronger Christchurch Infrastructure Rebuild Team
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 11 SCIRT – Stronger Christchurch Infrastructure Rebuild Team For personal use only Alliance to repair horizontal infrastructure in Christchurch Work includes water, wastewater, storm water, roads, bridges, etc. Total
Slide 12: South Pacific
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 12 South Pacific For personal use only Operates as a general contractor and first principles builder Currently active in all English speaking countries in the South Pacific Mobile, flexible self performing workforce P
Slide 13: South Pacific
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 13 South Pacific For personal use only Revenue* $76 million Backlog $57 million Employees 799
Slide 14: Fletcher EQR
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 14 Fletcher EQR For personal use only Contracted as the managing agent for Earthquake Commission Earns a flat fee on turnover 80,000+ homes in programme Full establishment after September 2010 earthquake Highly respon
Slide 15: Fletcher EQR
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 15 Fletcher EQR For personal use only Earthquakes in Canterbury – in excess of 11,000 shocks
Slide 16: Fletcher EQR Run Rate
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 16 Fletcher EQR Run Rate For personal use only 35,000 emergency repairs 37,000 full scope repairs 18,700 heat pumps + burners
Slide 17: Fletcher EQR – approaching the half way mark
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 17 Fletcher EQR – approaching the half way mark For personal use only Hubs established 21 hubs Fletcher staff 700 direct employees Contracting firms 1,126 accredited to date (580 active) People 18,373 contractors, tra
Slide 18: Fletcher Residential
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 18 Fletcher Residential For personal use only Building homes since 1909 Builds a range of homes including apartments, terrace homes and villas Secures strategic land positions and builds high quality with scale All co
Slide 19: Residential
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 19 Residential For personal use only Revenue* $191 million Dwellings 300 p.a. Employees 50 *Year ending 2012
Slide 20: Residential – future locations
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 20 Residential – future locations For personal use only
Slide 21: Prospects
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 21 Prospects For personal use only Project Size Expected Start South Pacific Games Facilities – PNG $156 million 2013 Sky City – NZ International Conference Centre $310 million 2013 Christchurch Hospital $650 million
Slide 22: Order Book - Projects
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 22 Order Book - Projects For personal use only Project Size Fletcher Share Wiri Prison PPP $870 million $300 million Waterview Tunnel $1,300 million $425 million ASB Head Office $105 million $105 million Rangiriri Byp
Slide 23: Trends
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 23 Trends For personal use only Large projects are getting bigger Introduction to PPPs Greater interest from international firms Christchurch doing well Christchurch anchor projects important High focus on housing aff
Slide 24: Areas for Growth
Investor Strategy Day - Construction Group | Fletcher Building | © May 2013 | Page 24 Areas for Growth For personal use only More homes – higher density Partnership with Government Leveraging experience from Canterbury Home Repair Programme Seismic retrofitting Operations and maintenance contracting