Slide 1: Concrete Analyst's Presentation
CONCRETE ANALYST’S PRESENTATION For personal use only 31 May 2012 Mark Malpass Chief Executive of Concrete Division
Slide 2: Disclaimer
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | 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 sta
Slide 3: Agenda
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 3 Agenda For personal use only Division result Business unit overviews Key strategic issues
Slide 4: Concrete Division
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 4 Concrete Division For personal use only Division Overview Business Description The Concrete division consists of a vertically integrated Firth NZ’s leading national concrete company supplying concrete business in New Zealand a
Slide 5: Concrete Results
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 5 Concrete Results For personal use only Dec 2011 Dec 2010 NZ Concrete NZ$m 6 months 6 months %r Sales 468 442 +6 • Volume declines in cement, aggregates and masonry EBITDA reflecting weaker •Concrete NZ 47 51 -8 •Concrete Aust.
Slide 6: Firth Industries
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 6 Firth Industries For personal use only
Slide 7: Firth Industries
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 7 Firth Industries For personal use only Certified Plants Kaitaia Taupo Puketona Junction Awatoto NZ’s largest ready mix producer Russell Hastings Whangarei New Plymouth Dargaville Marsden Point Stratford Hawera 66 plants (inclu
Slide 8: Firth Industries - Readymix
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 8 Firth Industries - Readymix For personal use only Certified volumes Certified Vols and MAV and MAV 100,000 1,050,000 Volume is the issue in most markets excluding Christchurch 90,000 1,000,000 80,000 Readymix footprint review
Slide 9: Winstone Aggregates - Overview
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 9 Winstone Aggregates - Overview For personal use only NZ’s largest quarry operator 19 hardrock operations (incl JV) Four sand operations Four cleanfill sites NZ’s largest licensed cleanfill operator A bulk transport operator wi
Slide 10: Winstone Aggregates - Quarry
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 10 Winstone Aggregates - Quarry For personal use only FY11 EBIT Breakdown FY09 EBIT Breakdown FY2011 volumes 28% off the top of Resource Recovery the cycle 29% Land 8% Transport Resource Recovery/Cleanfill 10% Other 6% diversifi
Slide 11: Winstone Aggregates – Quarry End Use
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 11 Winstone Aggregates – Quarry End Use For personal use only Three Kings 15ha future commercial, residential Filling commenced April 12 Discussions continue on releasing value of land prior Wiri to completion of filling 43ha (n
Slide 12: Humes Concrete Pipe & Precast - Overview
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 12 Humes Concrete Pipe & Precast - Overview For personal use only NZ’s largest pipeline systems company 22 sales centres NZ’s largest concrete pipe manufacturer Four pipe manufacturing plants New vibration technology plants at P
Slide 13: Humes - Pipe
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 13 Humes - Pipe For personal use only Concrete pipe sales volumes F09 saw dramatic decline in pipe market and sales volumes Quoting volumes increased by 32% in FY10 and then fell 10% in FY11 Tonnes Assessed market share has rema
Slide 14: Humes - Precast
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 14 Humes - Precast For personal use only Concrete precast quoted tonnes New sleeper plant commissioned in Hamilton Double capacity to meet 7 year Kiwi Rail contract – 150,000 sleepers per annum Significant environmental improvem
Slide 15: CSP Pacific
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 15 CSP Pacific For personal use only Leading supplier of roading envelope hardware including safety & lighting ABSORB 350™ Crash Cushion TL-1 Plastic Barrier TL-4 Steel Barrier Raptor Pole Protector X-350 Terminal End Universal
Slide 16: Golden Bay Cement - Overview
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 16 Golden Bay Cement - Overview For personal use only NZ’s largest cement manufacturer 1 million tonne, strategically located plant (North Island 70% market) $105m upgrade completed 2005, increased capacity and updated plant; ne
Slide 17: Golden Bay Cement – Market position
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 17 Golden Bay Cement – Market position For personal use only New Zealand Market Share estimate FY11 NZ Sales down 2% pa Share position strong Export sales steady 17% of total sales Source : Golden Bay Cement New Zealand sales vo
Slide 18: Golden Bay Cement – Competitive Environmental
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 18 Golden Bay Cement – Competitive Environmental For personal use only New Zealand sales analysis FY11 Cement imports have increased due to high exchange rates and low shipping rates Clinker grinding plant being considered by sy
Slide 19: Rocla Pipeline Products - Overview
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 19 Rocla Pipeline Products - Overview For personal use only One of the two largest concrete pipe manufacturers, market share 35% Largest concrete poles manufacturer One of two largest railway sleeper manufacturers Manufacturer o
Slide 20: Rocla Pipeline Products: Concrete Pipe and Products
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 20 Rocla Pipeline Products: Concrete Pipe and Products For personal use only Sales tonnes FY11 Pipe volumes increased 4% in FY 11 Pipe contribution to GM has improved & Other 30% Pipe stabilised around 21-22% 31% Poles Strategy
Slide 21: Rocla Pipeline Products - Concrete Pipe and Products
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 21 Rocla Pipeline Products - Concrete Pipe and Products For personal use only Despite tough markets in some Regions since acquisition EBIT growth has been good Growth focus Plastream plastic pipe facility established Adelaide pi
Slide 22: Rocla Quarry Products - Overview
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 22 Rocla Quarry Products - Overview For personal use only An independent sand quarry operator with 17 quarries in NSW, Victoria, SA and WA Products supplied includes: Concrete sands Brisbane Building and plaster sands Perth Drie
Slide 23: Rocla Quarry Products - Performance
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 23 Rocla Quarry Products - Performance For personal use only Revenue by Segment FY11 Forecast FY12 Sydney market remains flat 5.6% 15.9% Concre te Housing flat and a drop in Non Brick&Plaste r Residential 4.6% 46.0% Drie d Drop
Slide 24: Rocla Quarry Products - Performance
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 24 Rocla Quarry Products - Performance For personal use only Strong share position in most key Revenue by State FY11 markets City Rocla Share % Sydney 25% Melbourne 12% Adelaide 33% Perth 61% Source: Rocla Quarry Products FY11 e
Slide 25: Key strategic issues
Concrete Analyst’s Presentation | Fletcher Building | © May 2012 | Page 25 Key strategic issues For personal use only Challenging Environment Low volume environment, underutilised assets Increasing competitive dynamic Concrete Division sources of competitive advantage Capability – people, assets, te