Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (April 2016)
88 slides from Fletcher Building's investor day presentation, Apr 6, 2016
Slide 1: Distribution Investor Day
For personal use only Fletcher Building Limited This page Distribution change Investor Day pic?? 6 April 2016
Slide 2: Disclaimer
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. Because these statements are forward looking, Fletcher Building’s actual results could diff
Slide 3: Agenda
Agenda For personal use only 8:00am - 8:30am Coffee/Registration Mark Adamson – Chief Executive Officer 8:30am - 9:15am CEO Update / Q&A Lee Finney – Chief Transformation Officer 9:15am - 9.30am Divisional Introduction Dean Fradgley – Chief Executive, Distribution 9.30am -10:15am PlaceMakers Bruce M
Slide 4: CEO Update
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only CEO Update Mark Adamson CEO
Slide 5: Structure will support greater focus on business performance
Structure will support greater focus on business For personal use only performance Building International: Distribution: Residential & Construction: Chief Products: Francisco Dean Fradgley Land Graham Darlow Transformation Matt Crockett Irazusta Development: Officer: Steve Evans Lee Finney • GBCWins
Slide 6: Overview of Distribution
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only Overview of Distribution Dean Fradgley CE Distribution
Slide 7: Objectives for today's Distribution
Objectives for today’s Distribution Investor For personal use only Presentation • Present the divisional strategy • Cover key strategic areas of focus and growth • Meet the management team 7 Fletcher Building Distribution Investor Day | © April 2016
Slide 8: The Distribution portfolio has businesses across New Zealand and Australia
The Distribution portfolio has 11 businesses across New Zealand and Australia which are well recognised within For personal use only their markets • Enlarged Distribution covers New Zealand and Australian Distribution business units • 1st or 2nd in their markets • Operate within traditional markets
Slide 9: Distribution division operates across Australia and New Zealand
Our Distribution division operates across Australia and New Zealand with a diverse portfolio of product For personal use only businesses New Zealand's New Zealand’s Supplies bathroom New Zealand's Australia’s 2nd largest leading building largest specialty and plumbing leading importer, roll former a
Slide 10: We are in year three of executing the Distribution strategy
We are in year three of executing the Distribution For personal use only strategy 10 Fletcher Building Distribution Investor Day | © April 2016
Slide 11: FY15 financial highlights – total division
FY15 financial highlights – total division For personal use only Revenue ROFE NZ$3.2bn 14.1% 2.3% Capital expenditure EBIT NZ$54m 83% NZ$148m Gross margin realisation 17% 20% 18% 11 Fletcher Building Distribution Investor Day | © April 2016
Slide 12: Distribution is a key component of the Group's financial performance
Distribution is a key component of the Group’s For personal use only financial performance FY15 Revenue FY15 Revenue PlaceMakers Mico Distribution TradeLink Rest of Group Stramit Steel Distn NZ Other FY15 EBIT FY15 EBIT PlaceMakers Mico Distribution TradeLink Rest of Group Stramit Steel Distn NZ Oth
Slide 13: Distribution has momentum and has delivered robust organic profit
Distribution has momentum and has delivered robust organic profit by executing its customer leading For personal use only strategy • Strong revenue and double-digit year on year EBIT growth in New Zealand • Accelerated performance in PlaceMakers, successful turnaround in Mico and sustainable manufac
Slide 14: Potential to unlock more shareholder value through the cycle
Distribution has the potential to unlock more For personal use only shareholder value through the economic cycle Critical areas How • Buy better / sell better Profitable market share • Gross margin realisation • Efficiency and synergy • Core category penetration Organic growth • Shop within a shop c
Slide 15: Business units differentiate themselves within their markets
The Distribution business units differentiate For personal use only themselves within their markets 15 Fletcher Building Distribution Investor Day | © April 2016
Slide 16: Strategic review and areas of focus for the future
Strategic review and areas of focus for the future For personal use only 2015 strategic review by external consultants focussed on the following three areas: • Leveraging FB’s newly created Asian sourcing office • Promoting own exclusive branded ranges and specifications (Raymor / Adesso in Mico and
Slide 17: Distribution has momentum and line of sight to grow returns
Distribution has momentum and line of sight to For personal use only continue to grow returns and shareholder value • Clear and simple divisional strategy that is common across all its businesses • Demonstrable delivery in New Zealand over the last two years • New Zealand success and learnings now b
Slide 18: Summary: continued progress within Distribution
Summary: continued progress within Distribution – For personal use only growing earnings through strong execution NZ Distribution ROFE - 31.3% +813bps Superior returns Service Network differentiation efficiency Establish Embrace Set “what good Reduce critical areas of looks like” complexity Centrali
Slide 19: Summary: continued progress within Distribution
Summary: continued progress within Distribution – For personal use only growing earnings through strong execution Superior returns Service Service Network Promises in market differentiation efficiency Establish Embrace Set “what good Reduce critical areas of looks like” complexity Centralisation foc
Slide 20: Summary: continued progress within Distribution
Summary: continued progress within Distribution – For personal use only growing earnings through strong execution Superior returns Service Network • Delivered 8 New Zealand differentiation efficiency co-located sites • Planned program to do more Establish Embrace Set “what good Reduce critical areas
Slide 21: Summary: continued progress within Distribution
Summary: continued progress within Distribution – For personal use only growing earnings through strong execution Superior returns Service Network differentiation efficiency KPI scorecard Establish Embrace and Set “what good Reduce critical areas of performance looks like” complexity Centralisation
Slide 22: Summary: continued progress within Distribution
Summary: continued progress within Distribution – For personal use only growing earnings through strong execution Superior returns Service Network differentiation efficiency Leveraging Group Centres Establish Embrace of Excellence Set “what good Reduce critical areas of focus looks like” complexity
Slide 23: PlaceMakers
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only PlaceMakers Bruce McEwen GM PlaceMakers
Slide 24: PlaceMakers on a page
PlaceMakers on a page For personal use only • 2,400 employees, 70%+ employee engagement People • Performance focused operators / management team • Differentiated model • Relentless focus on service Customers • No.1 market share position • New loyalty scheme covering wider SME market • Record low cos
Slide 25: FY15 KPI highlights from PlaceMakers
FY15 KPI highlights from PlaceMakers improvements include double digit year-on-year For personal use only EBIT growth EBIT Revenue $1,167m $66.8m 8% YoY 26% YoY ROFE Gross margin realisation 41% 13% YoY 25% Net operating profit retained* 17% YoY $20m to $53m * Off FY13 baseline 25 Fletcher Building
Slide 26: PlaceMakers is the core revenue and profit engine
PlaceMakers is the core revenue and profit engine For personal use only of the Distribution division FY15 Revenue FY15 revenue of $1,167m PlaceMakers generates PlaceMakers 36% of the division’s Rest of revenue…. Distribution FY15 EBIT …and 45% of the division’s EBIT PlaceMakers Rest of Distribution
Slide 27: Our critical areas of focus to deliver on our strategy
Our critical areas of focus to deliver on our strategy For personal use only FY13 FY Baseline: 13 Target: FY 18 Sales : $0.95bn • Revenue $0.95b No one is easier to do • Sales : $1.46bn Revenue $1.4b EBIT • EBIT : 3.7% $36m business with • EBIT : 7%EBIT $100m Critical areas of focus Service Efficien
Slide 28: Focused on efficiency to drive gross margin realisation
PlaceMakers is focused on efficiency to drive For personal use only gross margin realisation improvements NZ$M 270.0 30% 250.0 25% GM realisation 940Bps 230.0 20% 210.0 15% 190.0 10% Cost to Serve % 320Bps 170.0 5% 150.0 0% FY13 FY14 FY15 GM$ Cost to Serve $ GMR 28 Fletcher Building Distribution Inv
Slide 29: Improved trading performance and joint venture model change
Improved trading performance accentuated by the joint For personal use only venture model change enhancing NOP retention • PlaceMakers has over 60 locations, with 53% of revenue relating to joint ventures owned with local operators • Changed the joint venture model, reducing joint venture equity, in
Slide 30: H1 FY16 sales growth of +10% driven by Auckland
H1 FY16 sales growth of +10% driven by strong growth in For personal use only Auckland supported by regional growth • Strategic focus on improving Auckland Sales Growth Auckland market share 25% +21% YTD • Changed business model in Auckland - was fragmented 20% and difficult to compete • One year la
Slide 31: Sales generation in core categories remains critical
Sales generation in core categories remains critical For personal use only area of focus Category Opportunities Largest timber frame and truss manufacturer in New Zealand Frame and Truss sales continue to grow profitably - $115m p.a. growing at 13% Network consolidation into 8 sites Frame and Truss
Slide 32: Share of wallet focus is key enabler for growth
Share of wallet focus is a key enabler for growth in For personal use only white space categories Category Opportunities Share of wallet focus leveraging sales of finishing products, i.e. kitchens now a $25m business GHB market share provides platform for further category extensions 32 Fletcher Buil
Slide 33: Targeted share of wallet campaigns take market share
Targeted share of wallet campaigns take market share For personal use only and increase pull-through of Fletcher Building products Over the last 18 months… Leverage Pull- Creates frame and through higher truss benefits margin capability for finishing for market Fletcher products share Building sale
Slide 34: Famous for differentiated service model
Famous for differentiated service model and For personal use only bringing this to life 34 Fletcher Building Distribution Investor Day | © April 2016
Slide 35: Obsessed with service; only distributor publishing service performance
We are obsessed with service and are the only national distributor in our sector that publishes its service For personal use only performance Net Promoter Score From 21 24.7 35 Fletcher Building Distribution Investor Day | © April 2016
Slide 36: Measuring balanced performance across key metrics
We are measuring balanced performance across key For personal use only metrics to maximise sustainable returns 197 Wanaka CUSTOMER Monthly Actual Monthly Target YTD Actual YTD Target Net Prom oter Score 36.5% 28% Tele phony Service Prom ise 86% 85 Pricing Credit as % Invoice 0.16% 0.36% 0.23% 0.36%
Slide 37: Customer leading behaviour is driving shareholder returns
In summary – customer leading behaviour is For personal use only driving shareholder returns • Service differentiation driving results and shareholder value Customer Leading. • Most profitable building supplies merchant in New Zealand • ROFE – CAGR 25% • Gross margin realisation up from 16% to 24% •
Slide 38: Mico
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only Mico Bryn Harrison GM Mico
Slide 39: Mico on a page
Mico on a page For personal use only • 450 employees with record employee engagement • 66 branches nationwide – corporate ownership model People • Largest plumbing merchant in New Zealand Customers • Differentiated service offer • Winning in back of wall and growing in bathrooms • Taking profitable
Slide 40: Mico has achieved an organic turnaround over two years
Over the last two years Mico has achieved an organic For personal use only turnaround led and delivered by our people FY14 EBIT* FY15 EBIT* FY16F EBIT* ($1.6m) $3.5m $9m+ Business Focus: Business Focus: Business Focus: • Restructuring post • Revenue growth • Market share Pipelines move to • Cost red
Slide 41: Key FY15 highlights from the Mico turnaround
Key FY15 highlights from the Mico turnaround For personal use only include: EBIT Revenue $210m $3.5m $5.1m ROFE Cost to Serve 7.8% 11.2% 26.6% Branches co-located 1.6% improvement 8 branches +6 branches 41 Fletcher Building Distribution Investor Day | © April 2016
Slide 42: Mico accounts for 5% of the Distribution division's result
Mico accounts for 5% of the Distribution division’s result, but is a positive internally led turnaround story For personal use only over the last two years FY15 Revenue Mico accounts for 7% of Mico the Division’s turnover….. FY15 EBIT …and 5% of the Division’s Mico EBIT 42 Fletcher Building Distribu
Slide 43: Our critical areas of focus to deliver on our game plan
Our critical areas of focus to deliver on our game For personal use only plan FY14 FY Baseline: 13 Target: FY 18 • Revenue $0.95b Sales : $215m No one is easier to do • Sales : $270m Revenue $1.4b • EBIT EBIT $36m : (1%) business with • EBIT : 6%EBIT $100m Critical areas of focus Take share: Lift pe
Slide 44: Mico is the industry leader with a customer service promise
Mico is the industry leader, differentiating itself For personal use only with an industry first customer service promise • Launched in June 2015 • Provides a tangible and defendable commitment to service for trade customers • Yet to be followed by other industry participants 44 Fletcher Building Di
Slide 45: Tangible link with service promise and financial performance
Tangible link with service promise and financial For personal use only performance Change in Daily Sales Rate % vs SMLY (2015) 25 20 15 10 5 The service promise has improved 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec customer satisfaction Net Promoter Score Net Promoter Score Oct 2014: 12 Mar
Slide 46: Growing bathrooms and increased marketing activity
Mico’s strength was in BOW. We have grown FOW/ bathrooms and increased marketing activity for an For personal use only improved balance • Exclusive sponsorship and supply of bathroom fixtures to “The Block NZ 2015” • Driven increase in footfall and showroom sales growth • Drove increase in share in
Slide 47: Reducing the cost to serve has been key for Mico
Reducing the cost to serve has been key for Mico and will continue to be through the economic For personal use only cycle FY14 FY15 FY16 Target YTD YTD YTD GM% 26.4% 27.5% 27.9% 29% Cost to Serve 28.4% 26.8% 24.7% 22% → People 16.4% 15.1% 13.6% 13.5% → Property 5.4%* 5.5%* 4.9% 3.5% → Other 7.4% 6.8
Slide 48: Property cost reduction allows Mico to be profitable through the cycle
Property cost reduction allows Mico to be profitable For personal use only through the cycle • Property cost focus enables profit through the cycle, as well as market share gain through additional points of presence PlaceMakers Mico Palmerston North • Two key strategies: – Co-location with Fletcher
Slide 49: Growing global trend for trade supplies purchased online
Growing global trend for trade supplies purchased For personal use only online • New e-commerce platform launched for bolt-on categories and further sales generation • Equipsafety.co.nz website built over the last 6 months to enable another channel route to market • Leading advancement into separate
Slide 50: In summary – in-house turnaround and customer focus
In summary – in-house turnaround and customer For personal use only focus driving increased shareholder value • ROFE on track for 20%+ (+12% YOY) • Customer focused service promise underpinning sales and EBIT growth • Investing for sales generation – new branches, e-commerce and marketing • Drive ef
Slide 51: Tradelink
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only Tradelink Alan Ball GM Tradelink Fletcher Building Distribution Investor Day | © April 2016
Slide 52: Tradelink on a page
Tradelink on a page For personal use only • 1,600 employees • Performance focused operators and management team People • Focus on training and development for sustainable growth • Experienced distribution senior leadership team • Number 2 in market with 18% share • Densification of network providing
Slide 53: Tradelink provides a platform to enable future earnings growth
Tradelink provides the division with a platform to For personal use only enable future earnings growth FY15 Revenue Tradelink Tradelink delivers 25% of the Division’s revenue… Rest of Distribution FY15 EBIT …and is management’s Tradelink number one priority to Rest of deliver sustainable Distributio
Slide 54: FY15 financial summary
FY15 financial summary: For personal use only EBIT Revenue A$15m A$732m 3% 31% ROFE Gross margin 4% 18% 28.7% FY16 annualised labour savings 1.4% A$10m 54 Fletcher Building Distribution Investor Day | © April 2016
Slide 55: Tradelink is forecasting A$22m of EBIT for FY16
Tradelink is forecasting A$22m of EBIT for FY16 For personal use only with a range of A$24 to A$28m expected for FY17 16 28 (4) 22 24 (4) 14 Trading EBIT Property Gain Restructuring Stock provisions FY16 Forecast FY17 55 Fletcher Building Distribution Investor Day | © April 2016
Slide 56: Our critical areas of focus to deliver on our plan
Our critical areas of focus to deliver on our plan For personal use only FY 13 FY 18 Long-term targets: FY13 Baseline: Revenue $0.95b Revenue • Sales : A$0.9bn $1.4b • Sales : $0.68bn No one is easier to do • EBIT EBIT $36m : 0.6% business with • EBIT : 5%EBIT $100m Critical areas of focus SME Custo
Slide 57: Australian plumbing market served by two dominant players
The Australian plumbing market remains an attractive industry served by two dominant players and For personal use only independents Market Size and share 4500 4000 3500 3000 2500 50% 2000 46% 48% 40% 43% 1500 36% 35% 31% 1000 35% 33% 500 23% 21% 19% 18% 18% 0 2011 2012 2013 2014 2015 Tradelink Reece
Slide 58: Year two of the 'winning in plumbing' strategy
Tradelink is in year two of executing the ‘winning in plumbing’ strategy, with accelerated focus on network For personal use only plumber (SME) Network Plumber Mix of maintenance, renovation and construction in From To residential and non-residential Network plumber 20% 27% Projects 25% 27% Retail 1
Slide 59: Clear customer segmentation and alignment
Clear customer segmentation and alignment For personal use only delivering market share growth Trade Trade+ Trade+ Project Project # Branches 107 61 17 18 2016 # Branches 165 61 17 20 2019 Annual Sales $1m - $5m $2m - $8m $3m - $10m $6m+ Branch Size 400 - 600 700 - 1,200 1,200+ 1,200+ People 3+ 5+ 9
Slide 60: Program of branch expansion; 60 new branches planned
A program of branch expansion has commenced based on the ‘winning in plumbing’ trial. 60 new branches planned in For personal use only next three years Trial – 2014 Amended - 2015 Implement - 2016 Based on 700-800 sqm concept 400-500 sqm Branch of the Future Winning in Plumbing Trade SME only (ACT T
Slide 61: Invest for growth over the next three years
In line with our strategy, we need to invest for growth over the next three years, leveraging low cost format For personal use only options • Having learned from the ACT pilot, we plan to spend A$10m over the next three years to expand our footprint by 60 branches • Payback to be under two years • B
Slide 62: Tradelink will refurbish its showroom network
To regain share, Tradelink will refurbish its showroom network prioritising dormant branches following best For personal use only practice from Mico Showroom Share FY15 26% Reece 11% 63% Tradelink Independent A$1.5m investment A$10m Sales Increment Bundaberg branch - Payback in 7 months A$45k invest
Slide 63: Focusing on people engagement and talent development
Management are focusing on people engagement and For personal use only talent development to accelerate strategy execution Blue Room • Facilitates feedback and action • Driving ownership accountability and change Induction • Facilitates culture and values learning • Driving customer service and pers
Slide 64: Tradelink will enter white space, margin accretive categories
Whilst core growth remains a priority, Tradelink will enter white space, margin accretive categories. E-Commerce For personal use only expansion offers further growth in the longer term FY17 FY18 FY19 HVAC Gas Products E-Commerce HVAC Gas Products E-Commerce • $1.4bn market • $100m market • 3% marke
Slide 65: Management focus remains on execution of 'winning in plumbing'
In summary - management focus remains on the execution of the ‘winning in plumbing’ strategy and greater execution For personal use only in three specific areas SME Developing and Densification of Customer engaging our branches segment team 65 Fletcher Building Distribution Investor Day | © April 20
Slide 66: NZ Steel Distribution
For personal use only NZ Steel Distribution Hamish McBeath GM NZ Steel Distribution
Slide 67: NZ Steel Distribution on a page
NZ Steel Distribution on a page For personal use only • 600 employees across four business units • 32 branches nationwide – 8 co-locations People • All BUs are 1st or 2nd in market Customers • Executing a differentiated model driving volume and record order book • $3m of synergies realised over last
Slide 68: NZ Steel Distribution is a key enabler of the division's EBIT
NZ Steel Distribution is a key enabler of the overall For personal use only division’s EBIT outcome FY15 Revenue NZ Steel NZ Steel distribution Distribution delivers 14% of the Rest of Division’s revenue... Distribution FY15 EBIT NZ Steel …and 25% of the Division’s Distribution Rest of EBIT returns
Slide 69: FY15 KPI highlights from NZ Steel Distribution
FY15 KPI highlights from NZ Steel Distribution For personal use only include: EBIT Revenue $437m $36m 7% 7% Pacific Coilcoaters scrap rates Gross margin 7% 4% 19% Steel Distribution ROFE 1% 30% 2% 69 Fletcher Building Distribution Investor Day | © April 2016
Slide 70: Our critical areas of focus to deliver on our game plan
Our critical areas of focus to deliver on our game For personal use only plan FY13 Baseline: Target: • Sales • Sales : $540m FY:13 $396m No one is easier to do FY 18 EBIT : 7% •Revenue business with • EBIT : 11% $0.95b Revenue $1.4b EBIT $36m EBIT $100m Critical areas of focus Service Efficiency obs
Slide 71: Leadership delivering the core engagement drivers
Leadership delivering the core engagement drivers For personal use only upon integration 71 Fletcher Building Distribution Investor Day | © April 2016
Slide 72: Differentiating our service offer
Differentiating our service offer For personal use only • Launched main colours 48 hours, Make to order 5 days - Industry Benchmark 7-9 days • Simplified product offer – Good, Better, Best • Increased technical support resource to ensure customer has support in product selection • Utilising Easystee
Slide 73: Each business has three key areas of focus
Each business within NZ Steel Distribution’s portfolio has three key areas of focus that will deliver sustainable For personal use only profit Bar sizes indicative only Manufacturing Share Market Market Share Manufacturing Market Margin Share Margins, share, manufacturing excellence and synergies wi
Slide 74: Despite challenging raw materials pricing, still profitable growth
Despite challenging raw materials pricing New Zealand For personal use only Steel Distribution still delivers profitable growth The current iron ore pricing will have negatively impacted many industry participants. At these prices there is increased risk from steel suppliers who may not be able to t
Slide 75: Business units well positioned for growth through the cycle
In summary – BUs are well positioned for growth For personal use only through the cycle and enhancing a differentiated model • NZ Steel Distribution is a positive contributor to the overall Fletcher Building Group earnings • Focused on customer, synergies, manufacturing excellence and managed costs
Slide 76: Stramit
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only Stramit Paul Tudor GM Stramit
Slide 77: Stramit on a Page – Australia's 2nd largest roll former
Stramit on a Page – Australia’s 2nd For personal use only largest roll former • 850 skilled employees across 20 locations • New GM and experienced management team People • Continued focus on engagement, capability and accountability • No. 2 market share position Customers • High brand equity and nat
Slide 78: Stramit provides 15% of the Distribution division's revenue
Stramit provides 15% of the Distribution division’s revenue and has scale to provide further organic top- For personal use only line and earnings growth FY15 Revenue Stramit delivers 15% of the Stramit Division’s revenue… Rest of Distribution FY15 EBIT Stramit …and 9% of the Division’s Rest of EBIT
Slide 79: 2nd in market with a focus on profitable organic growth
2nd in market with a focus on profitable organic For personal use only growth • $459m in sales in FY15 Darwin • Australia’s 2nd largest steel roll former, supplying roofing, Cairns cladding, rainwater and roller door systems Townsville • Operating 20 distribution The A Th Australian li steell roll l
Slide 80: Stramit supports 5,800 customers across three key markets
Stramit supports 5,800 customers across three key For personal use only markets Markets Customers Products Brands Residential 3,700 • Roofing customers: • Cladding • Installers • Rainwater • Distributors • Doors % FY15 Sales: 52% Commercial 1,200 customers: • Installers • Fabricators % FY15 Sales: 2
Slide 81: Financial insights for FY15 and H1 FY16
Financial insights for FY15 and H1 FY16 For personal use only FY15 EBIT FY15 Revenue H1 Revenue A $12.5m A$459m A$241m H1 EBIT 3% 0.2% 26% A $7.5m FY15 ROFE H1 ROFE 134% FY15 GM 7.7% 9.0% 15% 156% 16.2% H1 GM H1 Cost Out 0.8% 16.3% A$4.9m 9% of annualised savings 81 Fletcher Building Distribution In
Slide 82: Critical areas of focus to improve shareholder returns
Our critical areas of focus to improve shareholder For personal use only returns FY13 Baseline: Target: • Sales : A$462m No one is easier to do • Sales : A$500m • EBIT : 2.9% business with • EBIT : 8% Critical Areas of Focus Making it easier for Network performance our customers and efficiency Workf
Slide 83: Critical areas of focus to improve shareholder returns
Our critical areas of focus to improve shareholder For personal use only returns FY13 Baseline: Target: • Sales : A$462m No one is easier to do • Sales : A$500m • EBIT : 2.9% business with • EBIT : 8% Holding market share and Shut underperforming branches and pursuing profitable growth actively purs
Slide 84: On track heading into FY17 to deliver improved returns
We’re on track heading into FY17 to deliver For personal use only improved returns and a differentiated model FY16 FY17 FY18 Profit Customer Accelerated improvement obsession organic growth • Significantly improve • Optimise the network Shareholde Reduce our net margins • Pursue profitable overhea
Slide 85: Increasing profitability and building a customer focussed business
In summary – we’re increasing our profitability and For personal use only building a strong customer focussed business • Successfully removed $4.9m of annualised cost during H1 • On track to deliver an EBIT result that is a marked improvement on FY15 • Preparing to launch a promise that will align o
Slide 86: Distribution Division
Fletcher Building Distribution Investor Day Presentation 2016 For personal use only Distribution Division
Slide 87: Our strategy is clear and delivering strong returns in New Zealand
Our strategy is clear and is delivering strong returns in For personal use only New Zealand. Now being applied in Australia 87 Fletcher Building Distribution Investor Day | © April 2016
Slide 88: Summary: continued progress within Distribution
Summary: continued progress within Distribution – For personal use only growing earnings through strong execution Superior returns Service Network differentiation efficiency Establish critical Set “what good Reduce Embrace areas of focus looks like” complexity Centralisation 88 Fletcher Building Dis