Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (June 2015)
14 slides from Fletcher Building's investor day presentation, Jun 18, 2015
Slide 1: Investor Day Brisbane
For personal use only Investor Day Brisbane 18 June 2015
Slide 2: Presenters: Gerry Bollman and Bevan McKenzie
For personal use only Gerry Bollman Chief Financial Officer Bevan McKenzie GM, Strategy & Performance Management 2 Fletcher Building Investor Day Brisbane | © June 2015
Slide 3: 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 4: Fundamentally our strategic intent remains unchanged from two years ago
Fundamentally our strategic intent remains unchanged from two years ago For personal use only “There is no change to our core business as an integrated manufacturer and distributor of infrastructure and building products, as well as a construction company However: We are moving from total decentra
Slide 5: Our aspiration: top-quartile shareholder value creation through core operational levers
Our aspiration: to deliver top-quartile shareholder value creation through driving core operational levers For personal use only Capital Management Valuation Multiple Invest capex only where value is clear; drive efficiencies in working capital; exit underperforming businesses; return excess cash to
Slide 6: Our strategy is deployed at three levels of the organisation
Our strategy is deployed at three levels of the organisation For personal use only Where are we now? • Clear view of sustainable competitive advantage • Vision defined Group Portfolio • Focus on greatest value-creating • In execution phase Management opportunities • Clarity on where to invest, hold
Slide 7: Portfolio: FB has a diverse and complex portfolio of businesses
Portfolio: FB has a diverse and complex portfolio of businesses… For personal use only Manufacture & Supply NZ AU ROW Raw Material Supply to End- Primary Secondary Extraction & Users & Merchant Distribution Construction Processing Processing Processing Installation Concrete: Ready- Rocla Quarries Mi
Slide 8: Which can broadly be grouped into core sectors
…Which can broadly be grouped into 7 core sectors For personal use only Manufacture & Supply Raw Material Supply to End- Primary Secondary Extraction & Users & Merchant Distribution Construction Processing Processing Processing Installation Concrete: Ready- Mix, Masonry, Dri. Concrete: NZ + AU Concr
Slide 9: Portfolio strategy based on sustainable competitive advantage
Portfolio: Our portfolio strategy is based on our view of sustainable competitive advantage For personal use only Does the market sector have attractive Invest for Growth Above fundamentals and is FB well-placed to Yes the Base create material, profitable growth? No Does the business create material
Slide 10: Portfolio Strategy
Portfolio Strategy For personal use only New Zealand construction => leverage capability in the core Invest for Australasian distribution => growth through omni- Growth above channel the Base Laminates & Panels => unlock earnings potential of leading global business Integrated concrete NZ =>
Slide 11: FBUnite programmes now integrated into the FBU business model
FBUnite business transformation programmes are now fully integrated into the FBU business model For personal use only CUSTOMER Business Units: Customer-Leading Performance Central Functions Centres Of Excellence Finance Manufacturing HR Supply Chain Legal ICT Sales and Marketing Procurement Strategy
Slide 12: These programs are delivering value in line with expectations
These programs are delivering value in line with expectations For personal use only Core FBUnite programs will have delivered $50 million (net of costs) by end of FY15 Procurement ~$35 million Property ~$10 million Financial Shared Services ~$5 million Still anticipate these programs will deli
Slide 13: Clear set of strategic priorities for our businesses
To achieve our aspirations, we have a clear set of strategic priorities for our businesses For personal use only Objectives: Strategic Priorities: What does success mean? How do we make it happen? People • Safety Our aspiration is to be…. • Leadership, Talent & Capability Create a great • High-perfo
Slide 14: Performance issues in challenged businesses are being addressed
Performance issues in challenged businesses are being addressed For personal use only Plumbing and Roofing Sheds, bathroom Concrete Products Commercial Plastic Pipes distribution structures & Doors Performing in line Market remains Lower volumes and New management with plan competitive with