Fletcher Building Limited · NZX:FBU
Fletcher Building — Macquarie Conference 2013
19 slides from Fletcher Building's conference presentation, May 2, 2013
Slide 1: Presentation to Macquarie Conference
PRESENTATION TO MACQUARIE For personal use only CONFERENCE 2 May 2013 Mark Adamson Chief Executive Officer Iplex Pipelines, Christchurch
Slide 2: Disclaimer
Investor Presentation | Fletcher Building | © May 2013 | Page 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 ar
Slide 3: Presentation Overview
Investor Presentation | Fletcher Building | © May 2013 | Page 3 Presentation Overview For personal use only Fletcher Building overview Simplification of divisional structure FBUnite: overview of transformation programme Trading Update Balance sheet Outlook
Slide 4: Fletcher Building at a glance
Investor Presentation | Fletcher Building | © May 2013 | Page 4 Fletcher Building at a glance For personal use only • Revenue – 12 months to 30 June 2012: NZ$8.87 billion • Market Capitalisation: NZ$5.96 billion • Employees: 19,000 Shareholders: Revenues: EBIT (as at 31 Dec 2012) (6 months to 31 Dec
Slide 5: Business structure simplified around 5 divisional groupings
Investor Presentation | Fletcher Building | © May 2013 | Page 5 Business structure has been simplified around 5 divisional groupings For personal use only Infrastructure Building Laminates Distribution Construction Products Products & Panels Cement Building Materials Laminex New Zealand Constructi
Slide 6: FBUnite: multi-year business transformation programme
Investor Presentation | Fletcher Building | © May 2013 | Page 6 FBUnite: multi-year business transformation programme For personal use only
Slide 7: Efficiency: creating the lowest possible cost structure
Investor Presentation | Fletcher Building | © May 2013 | Page 7 Efficiency: creating the lowest possible cost structure For personal use only Shared Services: Procurement: Property: Reducing cost of core Coordination across Total group property costs support functions $800m p.a. of indirect across N
Slide 8: Strategy remains focussed on improved operational leverage and targeted growth
Investor Presentation | Fletcher Building | © May 2013 | Page 8 Strategy remains focussed on improved operational leverage and targeted growth opportunities For personal use only Maintain and build on our position in building and construction products sectors, as well as in distribution, primarily i
Slide 9: Trading Update
Investor Presentation | Fletcher Building | © May 2013 | Page 9 Investor Presentation TRADING UPDATE For personal use only Ngaruawahia Bypass, New Zealand
Slide 10: New Zealand earnings increase offset by decline in Australia
Investor Presentation | Fletcher Building | © May 2013 | Page 10 New Zealand earnings increase offset by decline in Australia For personal use only Dec 2012 Dec 2011 NZ$m 6 months 6 months % Change Sales 4,380 4,494 -3 EBITDA 374 372 +1 EBIT 262 256 +2 Net earnings 146 144 +1 Earnings per share (cen
Slide 11: Divisional operating earnings overview
Investor Presentation | Fletcher Building | © May 2013 | Page 11 Divisional operating earnings overview For personal use only EBIT NZ$million 102 94 64 56 51 42 37 37 26 25 Infrastructure 1 Building Products Laminates and Panels Distribution 2 Construction Products Dec-12 Dec-11 1. Includes Iplex Pi
Slide 12: Sustained improvement in New Zealand residential consents; Australia subdued
Investor Presentation | Fletcher Building | © May 2013 | Page 12 Sustained improvement in New Zealand residential consents; Australia remains subdued For personal use only Total residential consents; 12-month rolling – New Zealand and Australia 170,000 18,000 165,000 17,000 160,000 16,000 155,000 15
Slide 13: Competitive trends and themes
Investor Presentation | Fletcher Building | © May 2013 | Page 13 Competitive trends and themes For personal use only High A$ and NZ$ has increased import competition Historically low shipping rates also making imports more viable Change in mix of stand-alone versus multi-unit residential constructio
Slide 14: Canterbury update
Investor Presentation | Fletcher Building | © May 2013 | Page 14 Canterbury update For personal use only Considerable progress on residential home repairs: 47,000 emergency repairs completed 35,000 full scope repairs completed $1bn paid to contractors to end of January Home Repair Programme due to b
Slide 15: Forecast capital expenditure for FY13 is $58m lower than FY12
Investor Presentation | Fletcher Building | © May 2013 | Page 15 Forecast capital expenditure for FY13 is $58m lower than FY12 For personal use only NZ$m Dec 12 Dec 11 FY13 6 mths 6 mths % ∆ Forecast 100 353 Stay-in-business 52 101 -49 165 * Forecast 307 295* Growth¹ 31 22 +41 119 230 230 * Acquisit
Slide 16: Key Ratios
Investor Presentation | Fletcher Building | © May 2013 | Page 16 Key Ratios For personal use only Total Shareholder Return (TSR) Debt/Debt Plus Equity Percentage Percentage 47 40 24 35 36 35 31 14 14 27 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Dec-12 -27 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Dec-12 -43 Retur
Slide 17: Outlook
Investor Presentation | Fletcher Building | © May 2013 | Page 17 Investor Presentation OUTLOOK For personal use only Winstone Wallboards, Christchurch
Slide 18: Outlook FY2013
Investor Presentation | Fletcher Building | © May 2013 | Page 18 Outlook FY2013 For personal use only New Zealand − Uplift in housing consents in first half should lift performance of businesses exposed to residential sector in the second half − Infrastructure projects continue to underpin non-resid
Slide 19: Presentation to Macquarie Conference
PRESENTATION TO MACQUARIE For personal use only CONFERENCE 2 May 2013 Mark Adamson Chief Executive Officer Iplex Pipelines, Christchurch