Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (June 2023)
97 slides from Fletcher Building's investor day presentation, Jun 21, 2023
Slide 1: Fletcher Building Investor Day, FY23F EBIT of c.$800m
Fletcher Building Investor Day, FY23F EBIT of c.$800m Auckland, 21 June 2023: Fletcher Building Limited (‘Fletcher Building’ or the ‘Company’) is today holding a hybrid Investor Day for investors and analysts with presentations and Q&A taking place from 8:30am to 11:30am NZT. Fletcher Building manag
Slide 2: Webcast and contact details
As previously advised, to register and attend the event online and to watch the webcast live, please click on this link. Investors and analysts will be able to ask questions live via the webcast facility. While every endeavor will be made to answer all the questions that are submitted, this may not
Slide 3: Fletcher Building Investor Day June 2023
For personal use only Fletcher Building Investor Day June 2023 21 June 2023
Slide 4: Proven & capable leadership team with strong tenure
Proven & capable leadership team with strong tenure For personal use only Fletcher Building Group Team Operational Leaders ROSS CLAIRE WENDI PHIL DEAN BRUCE TAYLOR CARROLL CROFT BOYLEN FRADGLEY McEWEN Chief Executive Chief People Officer Chief Health and Chief Executive Chief Executive Chief Executi
Slide 5: Investor Day Agenda
Investor Day Agenda For personal use only Section Presenter AEST / NZT Duration 1. Overview Ross Taylor / Bevan McKenzie 6:30am / 8:30am 40 mins 2. Concrete Nick Traber 7:10am / 9:10am 20 mins 3. Building Products Hamish McBeath 7:30am / 9:30am 20 mins 4. Distribution Bruce McEwen 7:50am / 9:50am 20
Slide 6: Outlook
For personal use only Outlook Ross Taylor, CEO Fletcher Building Limited
Slide 7: FY23 EBIT expected to be c.$800m; margins >9%
FY23 EBIT expected to be c.$800m; margins >9%, solid performance despite softer market & wet weather in 2H23 For personal use only EBIT ($m) and EBIT Margin (%) Drivers of FY23F Financial Performance ▪ NZ & AU Materials & Distribution: market activity softer in 2H23, also impacted by wet weather. Ov
Slide 8: FY24 outlook: market to tighten further, continued growth investments
FY24, expect market to tighten further, focused on performing through the cycle (TTC), will continue with committed growth investments For personal use only ▪ Expect c.8% market volume decline in FY24 vs. FY23, softer residential, ongoing solid NZ & AUSTRALIA commercial / infrastructure MATERIALS &
Slide 9: Construction legacy projects nearing conclusion
Construction legacy projects nearing conclusion; remaining risks to manage are related mainly to claim settlements For personal use only Pūhoi to Warkworth motorway (P2W) ▪ Fletcher Construction (FCC) is a 50-50 JV partner with Acciona ▪ Opened in June 2023, some deferred works to complete through F
Slide 10: Medium Term Outlook
For personal use only Medium Term Outlook Fletcher Building Limited
Slide 11: NZ & AU building sector attractive, resilient, long-term tailwinds
FB is focused on the NZ & AU Building Sector: this sector is attractive, resilient & is supported by long-term macro tailwinds For personal use only Isolated markets Population growth Disruption opportunities Stable government Sector generally & region Population growth specifically have been slow G
Slide 12: Attractive diverse set of businesses across the building value chain
FB has a highly attractive & diverse set of businesses across the building value chain For personal use only Focus across NZ & Australia Revenue weighted to market Value chain revenue 22% Construction Infrastructure 16% NZ Materials $2.8b Resi & & 51% Dev't 8% Distribution revenue 44% Residential $6
Slide 13: Investing across the building products & solutions value chain
We invest in businesses across the building products & solutions value chain that align with our purpose For personal use only OUR We identify the ATTRACTIVE MARKETS & SECTORS we believe we can win in PURPOSE We hold businesses: “ • That are or can be #1 or #2 in their markets • Which have or can ac
Slide 14: Proven set of operating disciplines
We drive performance in each business through a now proven set of operating disciplines For personal use only OPERATIONAL & CAPABLE & INNOVATION & SAFETY CUSTOMER FINANCIAL SUSTAINABILITY HIGHLY ENGAGED GROWTH PERFORMANCE PEOPLE Page 12 | Fletcher Building Limited Investor Day Presentation | © June
Slide 15: Material margin performance improvements across all businesses
This has seen us drive material margin performance improvements across all our businesses over the last few years… For personal use only EBIT Margin Industry Economic Performance now Upper quartile now FY19 now FY19 FY19 Median now now FY19 now FY19 Lower quartile FY19 Building Products NZ Distribut
Slide 16: Progress in Safety & Sustainability
Progress in Safety & Sustainability has also been good and we are well positioned to take these to “best in class” in the near term For personal use only Safety: good progress continues Sustainability: 30% lower carbon by 2030, net zero by 2050 Now Target Now Target Total Recordable Injury 2,000 1,8
Slide 17: Emphasis moves to other key operating disciplines
Our emphasis to drive the next leg of performance improvements now moves to our other key operating disciplines For personal use only MAINTAIN FOCUS & MOMENTUM IN THESE AREAS OPERATIONAL & CAPABLE & SAFETY CUSTOMER INNOVATION & SUSTAINABILITY FINANCIAL HIGHLY ENGAGED GROWTH PERFORMANCE PEOPLE 3.2 40
Slide 18: Customer performance from Good to Great
We now want to get our Customer performance from “Good” to “Great” across all our businesses For personal use only Customer: driving customer solutions & services Now Target ▪ We have made strong progress in our Customer journey Net Promoter Score1 Net Promoter Score1 ▪ Our focus on improved service
Slide 19: Industry leading employee engagement
Achieving industry leading employee engagement is an equally important part of the puzzle… our people wanting to go “above and beyond” For personal use only Engagement: focus on continued improvement ▪ Our engagement target for FB Group is >40 – global upper Now Target quartile Employee Engagement R
Slide 20: Strong growth outlook with $800m+ commitments @ 15% ROFE
We have a strong growth outlook having made $800m+ of commitments @ 15% ROFEs, which will mature in FY27, and a significant number of other opportunities available to us For personal use only Waipapa Timber Laminex Taupō Comfortech FY24 FY25 FY26 FY27 FY28 $800m+ in committed growth capex @ 15% ROFE
Slide 21: Well positioned for tougher FY24, then margin expansion and growth
Putting all this together - Fletcher Building is well positioned for a tougher FY24, and then moving to both margin expansion and material growth in the years beyond this For personal use only FY24 FY25 FY26 FY27 FY28 Macro Residential headwinds Market tailwinds Margins Preserve Further operating ma
Slide 22: Medium Term Outlook
For personal use only Medium Term Outlook Bevan McKenzie, CFO Fletcher Building Limited
Slide 23: Solid base of operational performance
We have established a solid base of operational performance For personal use only EBIT1 Margin: NZ and AU Materials & Distribution Divisions ▪ Sustained margin uplift delivered from FY19 to FY23 >9% 8.0% 8.3% 6.6% ▪ Driven mainly by operational improvements in our NZ and AU Materials & Distribution
Slide 24: FY23 margins delivered in softening market
Our FY23 margins have been delivered in a market already softening off the peak – outlook for FY24 is for activity to move to around mid-cycle levels For personal use only Market volumes This year: FY23 vs. 2H22 Outlook: FY24 vs. FY23 ~7% ~8% ~5% ~8% Outlook has heightened degree of uncertainty, esp
Slide 25: Sectors supported by solid macro tailwinds
In the medium term, our sectors are supported by solid macro tailwinds For personal use only Residential Commercial Infrastructure ▪ Long-term housing stock ▪ Commercial investment continues ▪ Infrastructure deficit will require undersupply in a positive trajectory, esp. in decades of large investme
Slide 26: Locking in operational gains and driving margin expansion
We are focused on locking-in the operational gains we have made and driving further margin expansion over the medium term For personal use only Drivers of Medium Term Margin Expansion ▪ Investment in growth adjacencies NZ & AUSTRALIA – $800m+ committed, mainly organic NZ focus +50-100 MATERIALS & bp
Slide 27: Growth investment programme well advanced
Growth investment programme well advanced, strong ROFEs & earnings uplift For personal use only $800m+ growth invest’s FY23-26 Screened against robust criteria $120m+ full run-rate EBIT growth Waipapa Tumu ROFE ≥ 15% Timber c.$35m EBIT from M&A acquisition acquisition Waipapa, Tumu, and circular acq
Slide 28: Committed growth investment phased over FY23-FY26
Committed growth investment of $800m+ is phased over FY23-FY26 For personal use only Committed Growth Capex ($m) c.$300m c.$250m c.$250m Further significant organic opportunities available in FY26 onwards FY23F FY24 FY25-26 Page 26 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 29: Customer outcomes linked to performance
Customer: great customer outcomes are strongly linked to performance across all key metrics For personal use only CUSTOMER SAFETY ENGAGEMENT PROFITABILITY (Relationship NPS) (TRIFR) (eNPS) (EBIT margin %) 60 40 4.4 ~2.5x 2.2 20 10 Top third of FB BUs by Bottom third of FB BUs by customer NPS custome
Slide 30: Customer performance solid but variable across BUs
Customer: our performance is solid, but too variable across BUs – consistent delivery at target levels represents a massive opportunity in our industry For personal use only FB Relationship1 NPS Results FY23 – by Business Unit Competitive Benchmark NPS Results 2022-23 70 Our 60 target: 55 58 Best Fl
Slide 31: Improving service and solutions in four areas
Customer: we are focused on improving service and solutions in four areas For personal use only PRODUCT QUALITY, RESPONSIVE, JOINED UP THE AVAILABILITY, & DELIVERY CUSTOMER SERVICE FUNDAMENTALS Right product, right place, Seamless customer experience & on time, every time – DIFOTIS communication acr
Slide 32: Housing: positioned to grow unit sales
Housing: we are well-positioned to grow unit sales in the future – but only once we are confident of a NZ market recovery For personal use only Valuation of Land on Balance Sheet Growth Potential in Stronger Market (units) ▪ High-quality communities built at scale, avg. c.$1bn price <$1m = deepest p
Slide 33: Construction legacy projects cash outflow before claim recoveries
Construction legacy projects are a cash outflow in FY23-FY24 before assumed claim recoveries in FY25 For personal use only Forecast FCC Legacy Project Cash Flows ($m) ▪ Buildings: remaining net cash outflows relate to losses on fire reinstatement works and final ‘BAU’ works; outflows are c.125 conce
Slide 34: Underlying cash flows and balance sheet robust
Underlying cash flows and balance sheet settings remain robust For personal use only Underlying Trading Cash Flow1 ($m) ▪ Underlying FY23 cash flows robust, strong second half delivered in line with prior guidance 929 ▪ Forecast balance sheet metrics at Jun-23F: ▪ Net debt c.$1.5b 585 ▪ Funding faci
Slide 35: Well positioned for cycle, clear pathway for growth
Well positioned for cycle, disciplines & culture driving performance, with clear pathway for growth For personal use only ▪ Solid FY23 delivered in softer trading conditions ▪ FY24 focus on preserving operational gains as market reverts to mid-cycle levels ▪ Construction legacy nearing completion, s
Slide 36: Questions
For personal use only Questions Page 34 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 37: Concrete
For personal use only Concrete Nick Traber, CE Fletcher Building Limited
Slide 38: Concrete: NZ leader in sustainable binders & concrete
Concrete NZ leader in sustainable binders & concrete with leading positions based on strong brands, unique footprint & technical capabilities For personal use only ▪ Unique NZ wide footprint & network and well-balanced sector exposure mix ▪ Strong technical capabilities & leading brands ▪ Strong pos
Slide 39: Concrete: resilient business model
Concrete Resilient business model to perform through the cycle with strong FY23 performance despite a softening market, inflation & weather events For personal use only Key financial metrics Resilient business model 2001 c.19% ROFE c.14.0% 14.0% ▪ Balanced sector exposures with differentiated offers
Slide 40: Concrete: initiatives to drive mid-term performance
Concrete Initiatives to drive mid-term performance through innovation, digital & sustainability customer solutions For personal use only ▪ Differentiated and innovative solutions supporting asset owners and specifiers to decarbonise the built environment CUSTOMER ▪ Making it easy for customers to tr
Slide 41: Concrete: low carbon products & solutions
Concrete Leading the transition to low carbon construction with industry’s largest range of low carbon products & solutions For personal use only Leader in low carbon products… …and low carbon solutions Low Carbon Cement Smart Foundation Systems NZ’s lowest carbon GP cement, 30% lower carbon Fully r
Slide 42: Concrete: circular economy and waste recycling
Concrete At the forefront of the circular economy with a platform to fast-scale waste management and recycling services offering For personal use only >100,000 tonnes waste recycled or reused in FY23 ALTERNATIVE RAW MATERIALS ALTERNATIVE FUELS Reclaimed waste replacing virgin raw Waste diverted from
Slide 43: Concrete: pipeline of growth opportunities
Concrete Strong pipeline of opportunities across Division & organic and bolt-on adjacencies to drive future growth For personal use only FY24 FY25 FY26 FY27 FY28 New flagship Expanded bagged Roading and permeable FIRTH / DRICON Auckland plant product range solutions Investment in production & supply
Slide 44: Concrete: platform for sustainable growth
Concrete Leading platform for sustainable growth based on resilient business model with a portfolio of initiatives to innovation, digital & sustainability For personal use only ▪ Improved performance in FY23 despite a softening market, high inflation and weather events TTC RESILIENCE ▪ Resilient bus
Slide 45: Questions
For personal use only Questions Page 43 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 46: Building Products
For personal use only Building Products Hamish McBeath, CE Fletcher Building Limited
Slide 47: Building Products: solutions provider with unrivalled network
Building Products Leading platform for sustainable growth based solutions provider with unrivalled network For personal use only ▪ Four light building products in-country manufacturing businesses (only manufacturer of plasterboard & glasswool insulation); strong brands & all #1 or #2 market position
Slide 48: Building Products: well-positioned for sustained performance
Building Products Continued investment and performance improvement has division well- positioned for sustained TTC performance For personal use only Key financial metrics Top performing businesses with strong attributes ROFE1 c.18% ▪ # 1 / 2 market positions, strong market share 250 13.4% c.14.9% 16
Slide 49: Building Products: medium term performance
Building Products Continued investment and performance improvement will support medium term performance ahead of larger organic investments commissioning For personal use only ▪ Best-in-class service standard set by WWB and Comfortech ▪ Customer & employee experience improvements with expanded digit
Slide 50: Tauriko WWB plant on track and budget
Building Products Tauriko WWB plant – project on track & budget, plasterboard production trials commenced 15 May 23 For personal use only How we drive WWB’s performance ▪ Increased ability to innovate on products, by allowing for better formulation optionality & changeover speeds ▪ Onsite warehousin
Slide 51: Building Products: growth opportunities
Building Products Growth opportunities through organic adjacencies & disciplined M&A give the division a longer term growth trajectory For personal use only FY24 FY25 FY26 FY27 FY28 Full run-rate @ LAMINEX TAUPŌ $270m capex EBIT contributing 15% ROFE WAIPAPA TIMBER Plant upgrade / double shift Furth
Slide 52: Waipapa Timber transacted; year 1 EBIT c.$12.5m
Building Products Waipapa Timber transacted 9 Jun 23, post OIO approval; Year 1 earnings c.$12.5m EBIT For personal use only Driving performance at Waipapa ▪ Integration planning & execution with focus on people, safety and customers ▪ Retention of the Vendors in the business for 12 months to facili
Slide 53: Building Products: medium term portfolio outlook
Building Products Medium term portfolio outlook For personal use only ▪ FY24 margins expected to track slightly lower towards mid-cycle levels ▪ Focused on pricing disciplines & manufacturing efficiencies TTC RESILIENCE ▪ Businesses have the ability to flex down further if market softens but equally
Slide 54: Questions
For personal use only Questions Page 52 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 55: Distribution
For personal use only Distribution Bruce McEwen, CE Fletcher Building Limited
Slide 56: Leading trade distribution businesses in New Zealand
Distribution Leading trade distribution businesses in New Zealand For personal use only ▪ A leading national distributor of building & plumbing supplies via trusted & respected brands: PlaceMakers, Tumu HB & Mico ▪ Supported by our leading timber PlaceMakers & Tumu frame & truss manufacturing operat
Slide 57: Distribution: well-positioned for through-the-cycle performance
Distribution Well-positioned for through-the-cycle performance For personal use only Key financial metrics Strong customer connections 2001 c.44% ROFE c.7.7% 9.0% ▪ #1 or #2 market positions held by each of our businesses 180 2 margin 7.3% 8.0% EBIT 160 140 7.0% ▪ Strong EBIT margin performance 2 6.
Slide 58: Performance driven by customer focus and efficiency
Distribution Performance will be driven by relentless customer focus, supported by ongoing efficiency improvements to deliver higher margins For personal use only ▪ Best in class customer support – underpinned by customer centric leadership ▪ Capability build of our sales & support teams – Sales & S
Slide 59: Successful integration of Tumu Hawkes Bay acquisition
Distribution Concrete Successful integration of the Tumu Hawkes Bay acquisition For personal use only Successful integration of Tumu, with expected FY24 ahead of business case ▪ Acquired six Tumu branches and a frame & truss plant in Sep 22 ▪ Successfully integrated the business and its c.200 staff
Slide 60: Growth through automation, efficiencies & digital
Distribution Growth opportunities for market share gains through automation, efficiencies & digital For personal use only FY24 FY25 FY26 FY27 FY28 Sales & Service transformation, best in class customer service PLACEMAKERS & TUMU Network format optimisation Optimised network/DC fulfilment/densificati
Slide 61: Investment in automated frame & truss manufacturing
Distribution Concrete Investment in automated frame & truss manufacturing driving efficiencies and new capability For personal use only Continuing to invest in our future ▪ Investment in a new automated frame & truss plant centred in Auckland ▪ Technology & automation enabling greater efficiency and
Slide 62: Distribution well-positioned for TTC performance and growth
Distribution Concrete Distribution division well-positioned for TTC performance, and continuing to drive growth & margin expansion For personal use only ▪ Strong financial performance, with growing EBIT margins & strong ROFE TTC RESILIENCE ▪ Disciplined pricing methodologies & capability to offset i
Slide 63: Questions
For personal use only Questions Page 61 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 64: Coffee Break
For personal use only Coffee Break Presentations will resume at 8:25am AEST / 10:25am NZT Page 62 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 65: Construction
For personal use only Construction Phil Boylen, CE Fletcher Building Limited
Slide 66: Fletcher Construction: infrastructure construction & maintenance specialist
Construction Fletcher Construction is a leading NZ focused infrastructure construction & maintenance specialist For personal use only ▪ Focused on infrastructure construction & services with lower-risk order book of $2.2b ▪ Positioned in growth sectors of transport, water and marine with a strong pi
Slide 67: FCC reset to lower volume of better quality work
Construction FCC’s size & focus has been reset to a lower volume of better quality work For personal use only Key financial metrics1 Strong attributes ▪ Focused exclusively into the critical infrastructure c.$1.2b divisional revenue market ▪ Multi-year programmes across transport, water and @ c.2.6%
Slide 68: Committed forward order book 1.8x revenue
Construction The committed forward order book sits at a strong 1.8x revenue at average gross margins of 12% with a further preferred of c.$2.5b revenue For personal use only Orderbook Profile ($bn) Profile of forward work 1.4 Total order Targeted ▪ Forward order book primarily lower-risk forms of bo
Slide 69: Detailed programme of works, repeatable self-delivered scope
Construction Detailed programme of works, repeatable self-delivered scope For personal use only Watercare Enterprise Model ▪ Partnership for the delivery of water and wastewater infrastructure for Auckland ▪ Works include upgrading and expanding network of pipes, pump stations and treatment plants ▪
Slide 70: Responding to critical infrastructure requirements across the regions
Construction Responding to critical infrastructure requirements across the regions For personal use only East Coast Recovery Alliance ▪ Multi-year agreement to deliver the required major civil construction work include roads, bridges & rail corridors in the Hawkes Bay Region ▪ Construction costs est
Slide 71: Margin improvement through lower-risk contracts
Construction Margin improvement through lower-risk form of contracts For personal use only How we are driving performance ▪ Driving performance through Alliance based contracts that meet specified risk profiles with two new foundation projects: ▪ Eastern Busway Auckland ($800m+ construction value) ▪
Slide 72: Delivering margin improvement to 5% EBIT margin
Construction Focus is on delivering margin improvement over the medium term to get to 5% EBIT margin For personal use only Legacy projects materially completed, teams focused on delivery of new work from a high quality 1 orderbook in critical infrastructure (water, marine, airports & roads) New & lo
Slide 73: Construction: medium term portfolio outlook
Construction Medium term portfolio outlook For personal use only ▪ ~$172b infrastructure spend next decade, NZ govt committed ~$62b in ‘22 Budget for 2022 to 20261 MARKET ▪ Roads (44%) & water (19%) - well positioned to capture a large share of this activity ▪ Strong orderbook of $2.2b, expected to
Slide 74: Questions
For personal use only Questions Page 72 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 75: Residential and Development
Residential and For personal use only Development Steve Evans, CE Fletcher Building Limited
Slide 76: Leading developer with strong reputation for quality build
Residential & Development Leading developer with strong reputation for quality build For personal use only ▪ Developer of residential homes & communities, apartments & retirement living units in Auckland & Christchurch markets ▪ Only remaining at scale OSM supplier in New Zealand; projects located i
Slide 77: Ability to flex scale & typology in proven locations
Residential & Development Ability to flex scale & typology in proven locations where most depth of market; strong land bank positions For personal use only Key financial metrics Strong attributes and skillset established 2501 c.19% ROFE 21.4% c.23.4% ▪ Developments in strong / well-proven locations.
Slide 78: Positioned for market reality; targeting 700-800 unit sales in FY24
Residential & Development Pragmatically positioned for market reality with price points and locations in deepest part of market; targeting c.700-800 unit sales in FY24 with average YoY margins likely to contract before recovery in FY25 For personal use only Distribution of FY23F residential unit sal
Slide 79: Managing medium term performance with good disciplines
Residential & Development Managing medium term performance with good disciplines in place For personal use only FLETCHER ▪ Continuing to deliver valued communities with new and existing home typologies, focusing on LIVING below median price products in strong demand locations. Volumes to lift when m
Slide 80: Waiata Shores: raw land to new community
Residential & Development Raw land to new community - Waiata Shores continues to deliver 100+ homes p.a. For personal use only How we are driving performance ▪ Community has gained strength, with part of site sold to Progressive Enterprises has delivered a supermarket & medical centre, both now open
Slide 81: Maintaining control of funds until housing market recovers
Residential & Development Maintaining control of funds invested until housing market recovers; well- positioned to drive significant growth For personal use only Flex to market conditions, ready to go when market returns ▪ Current market supports c.700-800 unit sales p.a. without cannibalising price
Slide 82: Partnering with iwi and government
Residential & Development Partnering with iwi and government gives access to more land, and leads to great outcomes For personal use only How we are driving performance Okahukura Tauoma ▪ Having partnerships with government & iwi allows access to previously unavailable land ▪ Partnerships are long t
Slide 83: Resilient business model with portfolio of growth initiatives
Residential & Development Resilient business model with ability to navigate TTC and with a strong portfolio of initiatives to drive sustainable growth For personal use only ▪ Holding market volume delivery through the bottom of the cycle ▪ Management of funds through build and development WIP but TT
Slide 84: Questions
For personal use only Questions Page 82 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 85: Australia
For personal use only Australia Dean Fradgley, CE Fletcher Building Limited
Slide 86: Australia: light building products & distribution businesses
Australia Well-established light building products & distribution businesses which have delivered margin improvement with more to come For personal use only ➔ Significant ▪ near-term Leading manufacturer of decorative surfaces, plastic pipes, insulation, steel roofing, sheds and doors ▪ profit growt
Slide 87: Australia's operational disciplines and margin growth
Australia Australia’s operational disciplines & margin growth has it soundly positioned for this cycle For personal use only Key financial metrics Attributes ROFE1 c.12% ▪ # 1 or #2 market position in all businesses 200 c.5.5% 6.0% EBIT2 margin 5.0% ▪ Customer strategies to attract new and retain ex
Slide 88: Medium term performance driven by product development and digital
Australia Medium term performance driven by new product development, driving digital & improving customer experience For personal use only ▪ Ongoing focus on DIFOTIS continues to lift NPS ▪ Building out digitally based omni-channel solutions providing customers choice in how they transact CUSTOMER w
Slide 89: Over 35% of Laminex revenue now online
Australia Building out digitally based solutions: over 35% of Laminex revenue is now online attracting more customers & delivering improved margins For personal use only New revenue streams driving incremental online sales ▪ Laminex digital journey commenced 2019, now largest Digital NPS 49 digital
Slide 90: Growth opportunities lifting to 7-8% EBIT margins
Australia Further growth opportunities primarily through organic adjacencies & innovation lifting to 7-8% EBIT margins in the medium term For personal use only FY24 FY25 FY26 FY27 FY28 Targeted automation Product expansion to new Haven kitchen model LAMINEX investments reducing cost decorative categ
Slide 91: Stramit delivering margin accretive sheds & doors
Australia Category focus: Stramit delivering margin accretive sheds & doors segments For personal use only Driving performance in highest margin categories ▪ Stramit is the only roll-forming player with a complete, steel, sheds & door offering ▪ Taurean door systems expansion underway with capital a
Slide 92: FY23F EBIT growth of c.$50m in a declining market
Australia FY23F EBIT growth of c.$50m in a declining market. Well positioned through operational discipline and growth investments to deliver more value over the medium term For personal use only ▪ Strong operational disciplines in place, demonstrating our ability to get price TTC with lift in custo
Slide 93: Questions
For personal use only Questions Page 91 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 94: Well positioned for cycle, clear pathway for growth
Well positioned for cycle, disciplines & culture driving performance, with clear pathway for growth For personal use only ▪ Solid FY23 delivered in softer trading conditions ▪ FY24 focus on preserving operational gains as market reverts to mid-cycle levels ▪ Construction legacy nearing completion, s
Slide 95: Important Information
Important Information For personal use only This presentation has been prepared by Fletcher Building Limited and its group of companies (“Fletcher Building”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. In certai
Slide 96: Appendix – Humes moved from Building Products to Concrete
Appendix – Humes moved from Building Products to Concrete during FY23 For personal use only Reported Restated Pro forma Reported Reported Reported Reported Building Products 20191,2 20202 20212 20222 2023 H1 Building Products (excl. Humes) 20191 20202 20212 20222 2023 H1 Gross revenue 1,348 1,205 1,
Slide 97: Sustainability important part of our DNA
Sustainability important part of our DNA For personal use only “Improving the world around us through smart thinking, simply delivered” We have a focused plan to drive sustainability outcomes Leading to world-class sustainability credentials We will achieve our growth while remaining true to our Mem