Fletcher Building Limited · NZX:FBU

Fletcher Building — H1 FY2004 Earnings Presentation

29 slides from Fletcher Building's earnings presentation, Feb 11, 2004

  1. Slide 1: Half Year Results Presentation

    Half Year Results Presentation 11 February 2004

  2. Slide 2: This Half Year Results presentation dated 11 February 2004 provides additional comment on the

    This Half Year Results presentation dated 11 February 2004 provides additional comment on the media release of the same date. As such, it should be read in conjunction with and subject to the explanations and views of future outlook on market conditions, earnings and activities given in that release

  3. Slide 3: Highlights

    Feb 2004 Highlights ‰ Net profit up 34% to $111 million ‰ Operating Earnings up 35% to $216 million ‰ Acquisition of Tasman Building Products 3

  4. Slide 4: Summary of Results

    Feb 2004 Summary of Results Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Revenue 1929 1483 3221 EBITDA 274 203 429 EBITA 222 162 338 EBIT 216 160 331 Net Earnings 111 83 168 EPS (cents) 25.9 22.4 43.4 Dividend cps 11.0 9.0 19.0 4

  5. Slide 5: Segmental EBIT

    Feb 2004 Segmental EBIT Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Building Products 74 58 102 Distribution* 36 27 59 Concrete* 42 42 81 Construction 20 16 34 Laminates & Panels** 48 16 54 Corporate/Unallocated* -4 1 1 EBIT 216 160 331 * Discontinued operations transferred to Corporate ** I

  6. Slide 6: Building Products Results

    Feb 2004 Building Products Results Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Revenue 415 332 638 EBIT 74 58 102 Margin 17.8% 17.5% 16.0% Funds 571 319 296 Return on Funds (annualised) 29.4% 36.4% 34.5% 6

  7. Slide 7: Building Products

    Feb 2004 Building Products Tasman acquisition and integration Winstone Wallboards ƒ Volume and earnings up with market and completed capex Fletcher Aluminium ƒ Substantial improvement in earnings from improved productivity and processes 7

  8. Slide 8: Building Products

    Feb 2004 Building Products Steel Manufacturing ƒ Improved safety record ƒ Benefit from energy hedging ƒ Strong increase in scrap prices ƒ Strong competition and soft market for wire 8

  9. Slide 9: Building Products

    Feb 2004 Building Products Steel Processing and Distribution ƒ All well ahead of prior year ƒ Excellent volume growth in Pacific Coilcoaters ƒ Full year of consolidation benefits for EasySteel 9

  10. Slide 10: Distribution Results

    Feb 2004 Distribution Results Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Gross Revenue 425 358 744 EBIT 36 27 59 Margin 8.5% 7.5% 7.9% Funds 102 94 92 Return on Funds (annualised) 70.6% 57.4% 64.1% 10

  11. Slide 11: Distribution

    Feb 2004 Distribution ƒ Building Depot and Hire-a-Hubby divested ƒ Builders Hardware acquired ƒ Excellent sales through both the buoyant market and improved share performance ƒ Major store upgrade programme underway 11

  12. Slide 12: Concrete Results

    Feb 2004 Concrete Results Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Revenue 246 245 487 EBIT 42 42 81 Margin 17.1% 17.1% 16.6% Funds 410 401 400 Return on Funds (annualised) 20.5% 20.9% 20.3% 12

  13. Slide 13: Concrete

    Feb 2004 Concrete ƒ Golden Bay Cement impacted by increased logistic costs ƒ Capacity increase underway ƒ Winstone Aggregates, Firth, Humes and Stresscrete all well up on pcp ƒ International down on pcp 13

  14. Slide 14: Construction Results

    Feb 2004 Construction Results Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Revenue 324 310 618 EBIT 20 16 34 Funds -48 -80 -62 14

  15. Slide 15: Construction

    Feb 2004 Construction Construction ƒ Strong workload including Grafton Gully, Central Motorway Junction (CMJ), Greenhithe Bridge and Sky City ƒ Backlog around $450 million with $120 million imminent ƒ South Pacific workload improved 15

  16. Slide 16: Construction

    Feb 2004 Construction Residential ƒ Excellent result in line with market conditions ƒ Secured rights to some prime Auckland land providing three to five years of stock 16

  17. Slide 17: Laminates & Panels Results

    Feb 2004 Laminates & Panels Results Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths Revenue 511 196 659 EBIT 48 16 54 Margin 9.4% 8.2% 8.2% Funds 850 839 862 Return on Funds (annualised) 11.3% 9.8% 9.5% 17

  18. Slide 18: Laminex

    Feb 2004 Laminex ƒ Integration of Fletcher Wood Panels and Scott Panel & Hardware substantially completed ƒ Good volumes in all markets – residential, alterations and additions, commercial ƒ Australian distribution consolidations all complete bar Brisbane – under construction ƒ Export returns impact

  19. Slide 19: Profit After Tax

    Feb 2004 Profit After Tax Dec Dec Jun 2003 2002 2003 $m 6 Mths 6 Mths 12 Mths EBIT before Unusuals 216 160 331 Interest -36 -23 -59 Tax -58 -45 -85 Minority Interests -11 -9 -19 Profit After Tax 111 83 168 19

  20. Slide 20: Simplified Balance Sheet

    Feb 2004 Simplified Balance Sheet Dec Jun 2003 2003 NZ$m NZ$m Assets Current Assets 1045 984 Fixed Assets 1027 969 Intangibles & Goodwill 364 198 Provision for Deferred Taxation 101 105 Investments 150 155 Total Fletcher Building Assets 2687 2411 Liabilities Current Liabilities 683 693 Net Debt 605

  21. Slide 21: Key Ratios

    Feb 2004 Key Ratios Total Shareholder Return (TSR)*** 43% 24% 20%** 6% Jun 01* Jun 02 Jun 03 Dec 03 * For the 3 months from separation date ** For the six months *** TSR calculated ( (Gross Dividend Paid + Movement in Share Price)/Opening Share Price) 21

  22. Slide 22: Key Ratios

    Feb 2004 Key Ratios Debt/Debt Plus Equity % 80 49.2 49.9 48.4 60 40.2 40 20 0 Jun 01 Jun 02 Jun 03 Dec 03 22

  23. Slide 23: Key Ratios

    Feb 2004 Key Ratios Annualised Return on Average Equity* % 23.0 23.6 30 16.9 20 10 0 -10 -20 -30 -43.8 -40 -50 Jun 01 Jun 02 Jun 03 Dec 03 * Net earnings after capital notes interest/shareholders funds 23

  24. Slide 24: Key Ratios

    Feb 2004 Key Ratios Annualised Return on Average Funds* % 23.1 24.4 23.9 25 20 15 10 5 0 -8.6 -5 -10 Jun 01 Jun 02 Jun 03 Dec 03 24 * EBIT/(Average net debt+equity+capital notes) - deferred tax asset

  25. Slide 25: Key Ratios

    Feb 2004 Key Ratios Interest Cover* 12 10 7.6 7.3 8 5.8 (times) 6 3.1 4 2 0 Jun 01 Jun 02 Jun 03 Dec 03 * EBITDA pre unusuals/interest paid including capital note interest 25

  26. Slide 26: Net Term Debt Movement

    26 NZ$ Millions 200 400 600 800 Op en in gD eb t 502 Ta sm an 271 Ca sh f rom op s Wo (222) rki ng c ap ita l 33 Ca pe x 63 Ac qu is/ Div est 14 Div i de nd s 36 Mi n Dis t n 16 Net Term Debt Movement Ca pN ote s /Eq uit y (108) C lo sin g de bt 605 Feb 2004

  27. Slide 27: Operational & Strategic Update

    Operational & Strategic Update

  28. Slide 28: Strategic Agenda

    Feb 2004 Strategic Agenda ‰ New focus on costs prior to market easing ‰ Build on Tasman and Laminex positions where appropriate ‰ Evaluate new growth opportunities 28

  29. Slide 29: Outlook

    Feb 2004 Outlook ‰ Second half should remain strong ‰ Easing in residential in FY2005 ‰ Strong non-residential and A&A markets in FY2005 29

Fletcher Building — H1 FY2004 Earnings Presentation on 6ix