Fletcher Building Limited · NZX:FBU
Fletcher Building — Shareholder Meeting (November 2009)
42 slides from Fletcher Building's shareholder meeting presentation, Nov 11, 2009
Slide 1: Fletcher Building Limited 2009 Annual Shareholders Meeting
1 For personal use only Fletcher Building Limited 2009 Annual Shareholders Meeting Annual Shareholders Meeting 11 November 2009
Slide 2: Dr Roderick Deane, Chairman
2 For personal use only Dr Roderick Deane Chairman Annual Shareholders Meeting 11 November 2009
Slide 3: Directors
3 For personal use only Directors • Dr Roderick Deane (Chairman) • Hugh Fletcher • Dr Alan Jackson • John Judge • Jonathan Ling (Managing Director) • Sir Dryden Spring • Gene Tilbrook • Kerrin Vautier • Ralph Waters Annual Shareholders Meeting 11 November 2009
Slide 4: Meeting agenda
4 For personal use only Meeting agenda • Chairman’s overview • One hundred years of Fletcher in New Zealand • Chief Executive Officer’s address • Trading outlook • Shareholder questions and discussion • Consideration of, and voting on, the resolutions of the meeting Annual Shareholders Meeting 11 No
Slide 5: Overview remarks
5 For personal use only Overview remarks Annual Shareholders Meeting 11 November 2009
Slide 6: Sales
6 For personal use only Sales NZ$m Annual Shareholders Meeting 11 November 2009
Slide 7: Net earnings before unusual items
7 For personal use only Net earnings before unusual items NZ$m Annual Shareholders Meeting 11 November 2009
Slide 8: Cashflow from operations
8 For personal use only Cashflow from operations NZ$m Annual Shareholders Meeting 11 November 2009
Slide 9: Return on average funds
9 For personal use only Return on average funds Percentage Annual Shareholders Meeting 11 November 2009
Slide 10: Dividends
10 For personal use only Dividends Cents per share Annual Shareholders Meeting 11 November 2009
Slide 11: Total shareholder return
11 For personal use only Total shareholder return Percentage Annual Shareholders Meeting 11 November 2009
Slide 12: Fletcher Building relative share price performance
12 For personal use only Fletcher Building relative share price performance 140 120 100 80 60 40 20 0 /08 /08 /08 /08 /08 /08 /09 /09 /09 /09 /09 /09 07 08 09 10 11 12 01 02 03 04 05 06 Fletcher Building Boral CSR James Hardie Annual Shareholders Meeting 11 November 2009
Slide 13: Unusual items: proactively re-sizing the business
13 For personal use only Unusual items: proactively re-sizing the business Redundancy and restructuring costs: $43 million (after tax) • labour reduction of 2,500 to 16,500 across the group Capacity reduction initiatives: $100 million (after tax) • closure of Laminex particleboard and MDF plants • r
Slide 14: Balance sheet strengthened with equity raising
14 For personal use only Balance sheet strengthened with equity raising Debt / debt plus equity Percentage Annual Shareholders Meeting 11 November 2009
Slide 15: Changes to the board
15 For personal use only Changes to the board Directors retired during the year as part of planned succession arrangements: •Paul Baines •Geoff McGrath Two new directors appointed: •Alan Jackson •Gene Tilbrook Roderick Deane to retire as chairman on 31 March 2010; it is the current intention that Ra
Slide 16: Hugh Fletcher, Director
16 For personal use only Hugh Fletcher Director Annual Shareholders Meeting 11 November 2009
Slide 17: For personal use only
17 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 18: For personal use only
18 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 19: For personal use only
19 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 20: For personal use only
20 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 21: For personal use only
21 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 22: For personal use only
22 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 23: For personal use only
23 For personal use only Annual Shareholders Meeting 11 November 2009
Slide 24: Jonathan Ling, Chief Executive Officer
24 For personal use only Jonathan Ling Chief Executive Officer Annual Shareholders Meeting 11 November 2009
Slide 25: Strong performance in Steel, other businesses had lower volumes and margins
25 Strong performance in Steel, other businesses typically had lower volumes and margins For personal use only 1 EBITDA NZ$million 12 months ended June 2009 June 2008 296 255 214 171 159 175 131 123 82 80 40 18 ls & ty l e n uc g ee ur io od i n er n e te s ts St ut ct Pr ild op Pa in a ru rib Bu Pr
Slide 26: Residential construction activity was significantly lower in all key markets
26 Residential construction activity was significantly lower in all key markets For personal use only Jun 2009 Jun 2008 Jun 2007 09/08 Building Consents 12 months 12 months 12 % Mvmt months New Zealand 12,503 20,902 23,344 -40 Australia 132,073 162,732 153,400 -19 1 US 565,000 859,000 1,389,000 -34
Slide 27: Building Products result
27 For personal use only Building Products result Jun 09 Jun 08 • Plasterboard performance NZ$m 12mths 12mths %∆ impacted by low NZ housing Sales 771 739 +4 starts. EBITDA 1 131 171 -23 • Insulation in NZ & Australia 1 benefited from stimulus EBIT 106 148 -28 packages in second half. Funds 644 631 +
Slide 28: Distribution result
28 For personal use only Distribution result Jun 09 Jun 08 • Sales impacted by weak NZ NZ$m 12mths 12mths %∆ housing starts but market Sales 883 1,083 -18 share maintained. EBITDA 1 40 82 -51 • Significant staff reductions 1 implemented. EBIT 30 73 -59 • Frame and truss Funds 144 185 -22 manufacturi
Slide 29: Infrastructure result
29 For personal use only Infrastructure result Jun 09 Jun 08 NZ Concrete NZ$m 12mths 12mths %∆ • Volume declines in cement, Sales 2,052 1,857 +11 aggregates, readymix, masonry and concrete pipe. EBITDA 1 • Reflects weaker residential & - Concrete NZ 125 174 -28 commercial construction markets - Conc
Slide 30: Laminates & Panels result
30 For personal use only Laminates & Panels result Jun 09 Jun 08 Laminex NZ$m 12mths 12mths %∆ • Volumes down in NZ and Sales 2,052 1,857 +11 Australia, export markets weak. EBITDA • Significant input cost increases - Laminex 99 166 -40 in first half - Formica 60 48 +25 Formica Total EBITDA 1 159 21
Slide 31: Formica growth in Asia and North America turnaround boosted result
31 Formica growth in Asia and North America turnaround boosted result, but Europe weak For personal use only 1 EBITDA NZ$m 2H09 1H09 2H08 1H08 Asia 19 20 14 16 North America 17 2 -17 10 Europe 8 9 30 22 Corporate -9 -6 -17 -10 Reported EBITDA (NZ$) 35 25 10 38 1 Before unusual items Annual Sharehold
Slide 32: Steel result
32 For personal use only Steel result Jun 09 Jun 08 • Strong result in first half NZ$m 12mths 12mths %∆ reflected high steel prices and Sales 1,321 1,279 +3 strong demand. EBITDA 1 175 123 +42 • Second half sales 30% lower 1 than first half. EBIT 154 101 +52 • Continued strong demand Funds 562 589 -
Slide 33: Health and safety
33 For personal use only Health and safety Annual Shareholders Meeting 11 November 2009
Slide 34: Current operating climate
34 For personal use only Current operating climate • No significant pick up in activity across the group • Overall volumes are generally stable except for: – insulation in Australia and New Zealand – international markets for metal roof tiles • Commercial building recovery will require improvement i
Slide 35: Positioned for the future
35 For personal use only Positioned for the future Annual Shareholders Meeting 11 November 2009
Slide 36: No significant debt refinancing until 2013
36 For personal use only No significant debt refinancing until 2013 Funding and Maturity Profile 400 300 NZ$ millions 200 298 9 20 120 202 100 57 144 0 164 75 68 75 112 59 40 0 -5 19 20 13 12 10 11 18 16 19 14 17 15 -100 20 20 20 20 20 20 20 20 20 20 20 JuneYears Capital Notes Debt - Drawn Annual Sh
Slide 37: Upturn Plans
37 For personal use only Upturn Plans Annual Shareholders Meeting 11 November 2009
Slide 38: Strategy
38 For personal use only Strategy Longer term strategy continues to be: • improve earnings reliability • maintain and improve internal capabilities • pursue acquisition opportunities where these meet key investment criteria Our aspirations by geography: New Zealand Maintain and extend domestic busin
Slide 39: Dr Roderick Deane, Chairman
39 For personal use only Dr Roderick Deane Chairman Annual Shareholders Meeting 11 November 2009
Slide 40: Market outlook 2010
40 For personal use only Market outlook 2010 • Subdued outlook for FY10 with low activity levels expected in most markets. • Infrastructure spending in NZ and Australia will assist construction, concrete and steel businesses. • Weak residential and commercial building activity will impact results; I
Slide 41: Performance outlook
41 For personal use only Performance outlook • Current range of analysts’ forecast net earnings excluding unusual items for FY 2010 is NZ$261 million to $340 million • Based on current trading performance net earnings should fall within this range provided no further deterioration in key markets • W
Slide 42: For personal use only
42 For personal use only Annual Shareholders Meeting 11 November 2009
Fletcher Building — Shareholder Meeting (November 2009) on 6ix