Fletcher Building Limited · NZX:FBU
Fletcher Building — Macquarie Securities NZ Building & Construction Day (October 2010)
11 slides from Fletcher Building's conference presentation, Oct 15, 2010
Slide 1: Presentation to Macquarie Securities NZ Building & Construction Day
1 For personal use only Presentation to Macquarie Securities NZ Building & Construction Day Jonathan Ling, Chief Executive Officer 15 October 2010 Investor Presentation| Fletcher Building | © October 2010
Slide 2: Disclaimer
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. Because these statements are forward looking, Fletcher Building’s actual results could di
Slide 3: Agenda
3 Agenda For personal use only • NZ residential – current state of play • NZ household trends • Catalysts of change in demand • Christchurch earthquake impact • NZ Commercial sector • Infrastructure Investor Presentation| Fletcher Building | © October 2010
Slide 4: NZ Residential – current state of play
4 NZ Residential – current state of play For personal use only • Approvals currently running at approx. 16,000 per annum vs. 15 year average of 23,700 ‒ but up 19% on pcp • Consensus for the current year has fallen from 18,000 – 20,000 houses to 16,000 • Apartment consents are running at 15 year low
Slide 5: NZ Households are starting to delever
5 NZ Households are starting to delever For personal use only • Household debt has increased 150% since 2000 ‒ Household debt to disposable income was 105% in 2000, peaked at 159% in 2008 ‒ But reducing, now at 154% • House prices to disposable income: ‒ 4.9x versus 3.5x in 2000 (peaked at approxima
Slide 6: Potential catalysts for a pick up in residential construction
6 Potential catalysts for a pick up in residential construction For personal use only in NZ: • Personal income tax cuts from 1 October 2010 • Continued strong net immigration • Rebound in consumer confidence • Improvement in labour force employed and hours worked • Low interest rates & competitive m
Slide 7: Watertightness – fixing "Leaky Homes"
7 Watertightness – fixing “Leaky Homes” For personal use only • PWC report of March 2010 estimated 22,000 to 89,000 dwellings affected • Consensus forecast is 42,000 dwellings require repair, at a total cost of $11.3 billion ‒ 10 years for complete remediation • New scheme proposed from first quarte
Slide 8: Impact of Christchurch earthquake
8 Impact of Christchurch earthquake For personal use only • All FBU Christchurch based businesses are back up and running • Trading in Christchurch has been quiet while repairs are assessed and insurance claims are lodged • No significant impact on trading result is expected in the first half of FY2
Slide 9: Commercial Activity
9 Commercial Activity For personal use only • Activity levels in the non-residential sector are at their lowest levels since early 2004* • Value of non-residential consents to August 10 $3.97bn, down 21.8% on prior year • Shortage of development finance is hampering sector recovery • Biggest falls h
Slide 10: Infrastructure Outlook
10 Infrastructure Outlook For personal use only National Infrastructure Plan: CY10 to CY16 NZ$M Source: National Infrastructure Plan March 2010 Investor Presentation| Fletcher Building | © October 2010
Slide 11: Presentation to Macquarie Securities NZ Building & Construction Day
11 For personal use only Presentation to Macquarie Securities NZ Building & Construction Day Jonathan Ling, Chief Executive Officer 15 October 2010 Investor Presentation| Fletcher Building | © October 2010
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