Fletcher Building Limited · NZX:FBU
Fletcher Building — Shareholder Meeting (November 2011)
35 slides from Fletcher Building's shareholder meeting presentation, Nov 16, 2011
Slide 1: Fletcher Building 2011 Annual Shareholders' Meeting
FLETCHER BUILDING 2011 ANNUAL For personal use only SHAREHOLDERS’ MEETING 16 November 2011 Humes Pipelines, Auckland
Slide 2: Shareholders' Meeting: Mr Ralph Waters, Chairman
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 2 Shareholders’ Meeting MR RALPH WATERS For personal use only CHAIRMAN The Cloud, Auckland waterfront
Slide 3: Directors
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 3 Directors For personal use only Ralph Waters (Chairman) Tony Carter Hugh Fletcher Dr Alan Jackson John Judge Jonathan Ling (Managing Director) Cecilia Tarrant Gene Tilbrook
Slide 4: Meeting agenda
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 4 Meeting agenda For personal use only Chairman’s overview Chief Executive Officer’s address Trading outlook Shareholder questions and discussion Consideration of, and voting on, the resolutions of the meeting
Slide 5: Total shareholder return since listing
For personal use only 100 200 600 0 500 400 300 Mar 01 Jul 01 Percentage Nov 01 Mar 02 Jul 02 Nov 02 Mar 03 Jul 03 Nov 03 Mar 04 Shareholders’ Meeting | Fletcher Building | © November 2011 Jul 04 Nov 04 ASX 200 Mar 05 Jul 05 Nov 05 Mar 06 Jul 06 Nov 06 Fletcher Building Mar 07 Jul 07 Nov 07 Mar 08 N
Slide 6: 2011 Milestones
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 6 2011 Milestones For personal use only Successful acquisition and integration of Crane Group March was the tenth anniversary of Fletcher Building as a separate listed company on the NZX and ASX Fletcher Building now the largest buil
Slide 7: Responding to the challenge in Canterbury
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 7 Responding to the challenge in Canterbury For personal use only • Fletcher EQR formed to project manage 100,000 repairs for the Earthquake Commission • $6 million pledged to support the communities of Canterbury • $1 million donate
Slide 8: New Zealand residential consents at historically low levels
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 8 New Zealand residential consents in March and June quarters were at historically low levels For personal use only Housing consents 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Jun-10 Sep-09 Sep-10 Jun-09 Sep-11 Dec-0
Slide 9: Australian residential consents have slowed considerably this year
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 9 Australian residential consents have slowed considerably this year For personal use only Total Dwellings 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Sep-09 Sep-10 Jun-09 Jun-10 Sep-11 Dec-08 Dec-09 Jun-11
Slide 10: Fletcher Building Annual Report 2011
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 10 Fletcher Building Annual Report 2011 For personal use only
Slide 11: FY2011 Results
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 11 FY2011 Results For personal use only June 2011 June 2010 NZ$m 12 months 12 months % Change Sales 7,416 6,799 +9 EBIT¹ 596 521 +14 Net earnings1 359 301 +19 Unusual items after tax -76 -29 Net earnings 283 272 +4 Dividend (cents pe
Slide 12: Divisional operating earnings
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 12 Divisional operating earnings For personal use only EBIT NZ$million1 168 161 144 141 111 114 83 82 39 38 24 20 Building Products Distribution Infrastructure Property Laminates & Panels Steel 12 months ended Jun-11 Jun-10 1. Earnin
Slide 13: Total shareholder returns
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 13 Total shareholder returns For personal use only Total Shareholder Return (TSR) Percentage 40 42 24 14 14 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 -43
Slide 14: Changes to the board
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 14 Changes to the board For personal use only • Kerrin Vautier retired during the year as part of planned succession arrangements • Cecilia Tarrant appointed to the board in October 2011
Slide 15: Our people
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 15 Our people For personal use only
Slide 16: FBuShare
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 16 FBuShare For personal use only • Scheme launched to staff in 11 countries in March 2011 • Allows shares to be purchased over time, and for staff to receive award shares • Strong take-up with 30% of invited staff participating
Slide 17: Shareholders' Meeting: Mr Jonathan Ling, Chief Executive Officer
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 17 Shareholders’ Meeting Shareholders’ Meeting MR JONATHAN LING For personal use only CHIEF EXECUTIVE OFFICER The Cloud, Auckland waterfront
Slide 18: Building Products result
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 18 Building Products result For personal use only June 11 June 10 Plasterboard operating earnings NZ$m 12 Mths 12 Mths %∆ adversely impacted by slowdown in Sales 692 798 -13 residential housing starts and Christchurch earthquakes EBI
Slide 19: Distribution result
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 19 Distribution result For personal use only June 11 June 10 • Sales down 3% due to slowdown in NZ$m 12 Mths 12 Mths %∆ residential and commercial building Sales 856 878 -3 activity in the second half, and slowdown in Christchurch po
Slide 20: Infrastructure result
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 20 Infrastructure result For personal use only June 11 June 10 NZ Concrete NZ$m 12 Mths 12 Mths %∆ • Cement earnings up despite lower domestic volumes. Sales 2,052 2,020 +2 • Demand for concrete and related products typically weaker.
Slide 21: Laminates & Panels result
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 21 Laminates & Panels result For personal use only June 11 June 10 Laminex NZ$m 12 Mths 12 Mths %∆ • Australian revenues up strongly Sales 1,979 1,930 +3 in first half due to new housing and govt education building EBIT1 168 141 +19
Slide 22: Steel result
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 22 Steel result For personal use only June 11 June 10 • Strong performance in coated steel NZ$m 12 Mths 12 Mths %∆ despite impacts of floods and Sales 1,214 1,172 +4 earthquakes: • Operating earnings up 32% to EBIT 83 82 +1 $58m • Di
Slide 23: Crane Group Update
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 23 Crane Group Update For personal use only • Acquisition completed on 28 March 2011 • Majority of head office cost synergies have now been realised • Crane and Fletcher Building Australian corporate offices now integrated • FY11 tra
Slide 24: Health and safety results continued to improve
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 24 Health and safety results continued to improve For personal use only Total recorded injury frequency rate 70 60 50 Number 40 30 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011
Slide 25: Management changes
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 25 Management changes For personal use only • Kate Daly appointed Group GM Human Resources • Tim Richards promoted to chief executive, Building Products division • Graham Darlow promoted to chief executive, Construction division • Re
Slide 26: Canterbury earthquake rebuilding update
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 26 Canterbury earthquake rebuilding update For personal use only • Another major earthquake of magnitude 5.5 occurred on Sunday 9 October • Government has confirmed that this will further delay rebuilding • Non-availability of insura
Slide 27: Australian Carbon Reduction Scheme
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 27 Australian Carbon Reduction Scheme For personal use only • To be introduced in July 2012 as part of its Clean Energy Future Plan • Increased natural gas and electrical costs as retailers and generators pass on additional costs of
Slide 28: Fletcher Building trading update
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 28 Fletcher Building trading update For personal use only New Zealand • Continued low levels of activity in the residential and commercial construction sectors; − Recent modest uplift in residential consents has yet to flow through t
Slide 29: Capital expenditure expected to remain in line with depreciation
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 29 Capital expenditure expected to remain in line with depreciation For personal use only 307 ¹ 289 Forecast excludes 255 * 255 * potential expenditure on: 211 206 205 191 • Business acquisitions other than small “bolt-on’s” • Formic
Slide 30: Gearing increased with Crane but remained conservative
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 30 Gearing increased with Crane but remained conservative For personal use only Debt/ Debt Plus Equity Percentage 40 37 34 31 27 22 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11
Slide 31: Strategy
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 31 Strategy For personal use only Improved earnings reliability through geographic and end-market diversification Decentralised business model Portfolio approach that creates value through application of proven operating model Target
Slide 32: Shareholders' Meeting: Mr Jonathan Ling, Chief Executive Officer
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 32 Shareholders’ Meeting Shareholders’ Meeting MR JONATHAN LING For personal use only CHIEF EXECUTIVE OFFICER The Cloud, Auckland waterfront
Slide 33: Shareholders' Meeting: Mr Ralph Waters, Chairman
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 33 Shareholders’ Meeting MR RALPH WATERS For personal use only CHAIRMAN The Cloud, Auckland waterfront
Slide 34: Financial outlook FY2012
Shareholders’ Meeting | Fletcher Building | © November 2011 | Page 34 Financial outlook FY2012 For personal use only Based on: − Current assessment of market conditions − Unaudited internal forecasts Net earnings for the 2012 half year are expected to be around 10% lower than the 2011 result of $166
Slide 35: Fletcher Building 2011 Annual Shareholders' Meeting
Citi Presentation | Fletcher Building | © October 2011 Trading Update & Outlook | Page 35 FLETCHER BUILDING 2011 ANNUAL For personal use only SHAREHOLDERS’ MEETING 16 November 2011
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