Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (June 2022)
93 slides from Fletcher Building's investor day presentation, Jun 22, 2022
Slide 1: Investor Day announcement, FY22 EBIT guidance reiterated
Fletcher Building Investor Day, FY22 EBIT guidance of c.$750m reiterated For personal use only Auckland, 22 June 2022: 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 10:00
Slide 2: Authorisation and contacts
#Ends Authorised by: For personal use only Andrew Clarke Company Secretary For further information please contact: MEDIA INVESTORS AND ANALYSTS Christian May Aleida White General Manager – Corporate Affairs Head of Investor Relations +64 21 305 398 +64 21 155 8837 Christian.May@fbu.com Aleida.White@
Slide 3: Fletcher Building Investor Day: Building for tomorrow
For personal use only Fletcher Building Investor Day June 2022 Building for tomorrow 22 June 2022
Slide 4: Outline for today
For personal use only Outline for today Session 1 Divisional expos Session 2 Presentations and Q&A (Hybrid) Session 3 Site visits Session 4 Evening event Fletcher Building Limited
Slide 5: Fletcher Building – Building for Tomorrow
Fletcher Building – Building for Tomorrow For personal use only Section Presenter AEST / NZT Duration 1. Building for tomorrow Ross Taylor / Bevan McKenzie 8:00am / 10:00am 55 mins 2. Building Products Hamish McBeath 8:55am / 10:55am 20 mins 3. Distribution Bruce McEwen 9:15am / 11:15am 20 mins Coff
Slide 6: Scale NZ & Australia in-country manufacturer of building products
A scale NZ & Australia in-country manufacturer of building products with complementary distribution, development & construction businesses For personal use only Australia New Zealand FY22F $2.8b Rev $115m EBIT 4,600 people FY22F $6.5b Rev $635m EBIT 9,100 people Nationwide but East Coast focus N
Slide 7: NZ plasterboard market likely back in equilibrium by October 2022
It is likely the New Zealand Plasterboard market will come back into equilibrium by October 2022 For personal use only Plasterboard market volumes were being met to customers up to August 2021 WWB Average Daily Orders (sqm) Following the Auckland lockdown, industry shortages across a range of ke
Slide 8: New WWB plant at Tauriko opens in 2023
New WWB plant at Tauriko opens in 2023 and will add an extra 30% of capacity to the NZ market For personal use only New plant was approved in 2019 when consents were running at 35,000 p.a. vs. the current level of c.50,000 p.a. Tauriko plant on track for a May 2023 opening Plant was delayed by a
Slide 9: Vision, purpose and strategic goals
Our vision, purpose and strategic goals will continue to underpin the next steps of our journey… For personal use only Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic Leaders
Slide 10: FY22F and medium-term targets
… which we are confident can deliver strong growth at present market levels and materially improve through-the-cycle performance For personal use only FY22F Medium-term targets at current market levels Significant pipeline of growth EBIT1 c.$750m investments in adjacencies + $150-300m Continued
Slide 11: Proven and capable leadership team (1/2)
Our confidence is underpinned by a proven & capable leadership team which continues to grow & evolve in line with our aspirations (1/2) For personal use only Operational Leaders International design & International distribution & Distribution sector construction experience manufacturing sector
Slide 12: Proven and capable leadership team (2/2)
Our confidence is underpinned by a proven & capable leadership team which continues to grow & evolve in line with our aspirations (2/2) For personal use only Fletcher Building Group Team Global career in engineering, Successful development & Leading & driving Protect construction, building del
Slide 13: Experienced GM team and progress across people metrics
This is further reinforced by an experienced GM team and good progress across all people metrics For personal use only Employee Engagement Rating1 82% engagement across a stable team of General Managers General Managers (GMs), which has been in place & driven the business reset 82% 78% 76% 72% +
Slide 14: Good progress on safety
Leadership in Market leading Economic performance Strategic innovation, Zero injuries every day customer solutions Lowest delivered cost of each business Goals sustainability, and and services in industry top quartile growth via disruption We are making good progress on safety and getting everyone h
Slide 15: Driving market leading customer solutions and services
Leadership in Market leading Economic performance Strategic innovation, Zero injuries every day customer solutions Lowest delivered cost of each business Goals sustainability, and and services in industry top quartile growth via disruption We are driving market leading customer solutions and service
Slide 16: Relentless focus on operational improvements
Leadership in Market leading Economic performance Strategic innovation, Zero injuries every day customer solutions Lowest delivered cost of each business Goals sustainability, and and services in industry top quartile growth via disruption Our relentless focus on operational improvements will contin
Slide 17: Economic performance of each business in industry upper quartile
Leadership in Market leading Economic performance Strategic innovation, Zero injuries every day customer solutions Lowest delivered cost of each business Goals sustainability, and and services in industry top quartile growth via disruption We are driving economic performance of each business to be i
Slide 18: Growth opportunities from sustainability, innovation and disruption
Leadership in Market leading Economic performance Strategic innovation, Zero injuries every day customer solutions Lowest delivered cost of each business Goals sustainability, and and services in industry top quartile growth via disruption We have a compelling suite of growth opportunities in front
Slide 19: Strategy positions us well to drive shareholder value
Our strategy positions us well to drive shareholder value in the short- and long-term For personal use only 01 02 03 04 05 Significant Plans and Established Strong Well-positioned near-term runway for pipeline of enduring for macro profit growth further margin growth financial trends improvement i
Slide 20: 1. Near-term profit growth
1. Near-term profit growth We expect FY22 EBIT of c.$750m, with an FY23 target for a $100m+ uplift (assuming a broadly flat market) For personal use only FY22F EBIT1 by Division ($m) FY23 EBIT1 Target Building Products c.$210m FY23 target is for $100m+ uplift in Group EBIT (vs. FY22F) Distribution
Slide 21: 2. Margin: EBIT margin improved by 200bps vs FY19
2. Margin EBIT margin has improved by 200bps (vs. FY19), driven by cost-out, improved pricing and revenue mix For personal use only Group EBIT1 Margin (%) Key levers driving improvement over FY19-22 Cost-out: Gross cost reduction of >$250m, focused +230 particularly on supply chain and overheads b
Slide 22: 2. Margin: price effectiveness and cost efficiency
2. Margin Price effectiveness and cost efficiency have been key drivers of margin improvement For personal use only Gross Margin % in Products & Distribution Div’s1 Overheads / Revenue % in Products & Distribution Div’s1 +70 -140 bps 22.9% bps c.30.0% 21.9% 29.6% c.21.5% 29.3% FY19 2 FY21 2H22F FY19
Slide 23: 2. Margin: targeting 100-200bps further expansion
2. Margin Targeting 100-200bps of further EBIT margin expansion at current activity levels; 9-10% target at mid-cycle For personal use only Current EBIT1 Margin (%) Drivers of Margin Expansion Medium-Term Target EBIT1 Margin (%) Growth in margin-accretive NZ segments +50-100 bps c.10.5-11.5% (i.e. m
Slide 24: 2. Margin: Fletcher Construction order book
2. Margin Fletcher Construction order book well-placed to deliver 3-5% margins, with two legacy projects to complete For personal use only Fletcher Construction Committed forward order book of $3.1b Underpins c.80% of FY23F revenue Focus on NZ civil infrastructure: roading, marine, airports &
Slide 25: 3. Investment: base capex $200-250m p.a.
3. Investment ‘Base’ capex of $200-250m p.a. to support underlying business; focus is on digital, efficiency & sustainability For personal use only ‘Base’ Capex: $200-250m p.a. $150-175m p.a. to maintain current asset base Maintenance Compares to underlying depreciation1 of $165m p.a. in FY22
Slide 26: 3. Investment: growth capex c.$500m over FY23-25
3. Investment ‘Above base’ growth capex of c.$500m over FY23-25, mainly on organic investments into NZ adjacencies For personal use only ‘Above Base’ Growth Capex: c.$500m over FY23-25, targeting ROFE ≥ 15% and $75m+ of EBIT uplift at maturity c.$500m of investment in product & network adjacencies
Slide 27: 3. Investment: Residential Development investment approach
3. Investment Residential Development investment based on through-the-cycle metrics, with sensible capital allocation For personal use only Residential Development Business: Investment Approach and Resilience Land pipeline secured to deliver growth to c.1,400 units in FY25 Disciplined approach to
Slide 28: 4. Financial position: lower end of target leverage range
4. Financial position and returns We expect to operate at the lower end of our target leverage range – resilient balance sheet settings For personal use only Leverage (Net Debt / EBITDA) Strong balance sheet to support growth investments 2.0x Investments may lift the Group’s leverage by c.0.2x t
Slide 29: 4. Material improvement in ROFE; shareholder returns
4. Financial position and returns Material improvement in ROFE; strong and sustainable shareholder returns For personal use only ROFE1 (%) Returns Dividends (cps) Share buyback c.18.0% >15% 13.5% 18.0 41.2m shares repurchased for 18.0 $275m completed in May-22 FY19 2 FY22F Through-the-cycle Through-
Slide 30: 4. Shareholder returns supported by trading cash flows
4. Financial position and returns Shareholder returns supported by underlying trading cash flows For personal use only Underlying Trading Cash Flow1 ($m) c.$2.5b of total underlying trading cash flow in FY19-22F FY22F trading cash flow lower on investments in inventory 929 Draw-down of stocks
Slide 31: 5. Market outlook – summary
5. Market outlook – summary Current volumes strong; backlog to support activity over next 12-18 months For personal use only Current trading volumes in the business remain strong Demand is running ahead of industry capacity to build in residential, particularly in New Zealand NZ residential co
Slide 32: 5. Market outlook – macroeconomic impact
5. Market outlook – macroeconomic impact Given heightened macro uncertainty, we asked Deloitte to look at the relationship between key economic For personal use only variables and activity in our markets – and to provide an independent view of the medium-term outlook Model Example: NZ Residential WP
Slide 33: 5. Market outlook – non-residential NZ & AU
5. Market outlook – non-residential NZ & AU NZ & AU non-residential are 45-50% of FB’s market exposure. Pipeline of work expected to be solid For personal use only NZ Commercial & Infrastructure WPIP ($b) Commercial Infrastructure Non-residential activity is expected to 19% 18% 6.7 8 remain suppor
Slide 34: 5. Market outlook – residential AU
5. Market outlook – residential AU AU residential activity is currently at an average of the past five years – material near-term backlog and solid outlook For personal use only AU Residential Work Done (A$b) AU residential activity is currently at an average of the past 19% 93.0 85.3 87.2 five ye
Slide 35: 5. Market outlook – residential NZ
5. Market outlook – residential NZ NZ residential currently at capacity – backlog likely to support next 12-18 months; FY24 softening expected For personal use only NZ Residential WPIP ($b) Current consenting levels of c.50k p.a. are c.20-30% above 14.0 33% 12.4 industry capacity to build 12.0 12.
Slide 36: Summary
Summary We will drive ongoing performance and growth – building a sustainably better, more resilient business For personal use only 01 02 03 04 05 Significant Plans and Established Strong Well-positioned near-term runway for pipeline of enduring for macro profit growth further margin growth financ
Slide 37: Questions
For personal use only Questions Page 35 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 38: Agenda
For personal use only Agenda 1. Building for tomorrow Ross Taylor / Bevan McKenzie 2. Building Products Hamish McBeath 3. Distribution Bruce McEwen 4. Concrete Nick Traber 5. Australia Dean Fradgley 6. Residential and Development Steve Evans 7. Concluding Remarks Ross Taylor Fletcher Building Limite
Slide 39: Building Products: leading NZ building products solutions provider
Building Products The leading New Zealand building products solutions provider with unrivalled network For personal use only Market leading building products brands for the finishing trades with world leading technical product knowledge Strong in-country manufacturing presence, providing a large
Slide 40: Building Products: EBIT margin growing to c.14%
Building Products EBIT margin growing to c.14% through pricing disciplines, new products and manufacturing efficiency investments; ROFE decline reflects investment in inventory For personal use only EBIT ($m)1 EBIT Margin1 (%) and ROFE2 (%) Key Non-financial Measures FY19 YTD22 c.$210m 23.3% TRIFR3
Slide 41: Driving growth with new glasswool insulation plant
Building Products Driving growth with new glasswool insulation plant Current plant at full capacity; responding to Building Code change requiring c.2x current bales of insulation For personal use only Driving operational performance (top & bottom line) Delivering growth through code change requireme
Slide 42: Laminex Taupo plant upgrade
Building Products Laminex Taupo plant upgrade Delivering growth through modernisation, adjacencies & higher margin products For personal use only Laminex Taupo plant upgrade for wood-fibre products Laminex upgrade site footprint Final stages of vendor selection for new panels plant in Taupo New
Slide 43: Steel: investing in logistics, cost and operating efficiencies
Building Products Steel Investing to achieve world-class logistics, cost & operating efficiencies as well as market share For personal use only Steel manufacturing efficiencies New Steel site delivering best-in-class manufacturing 1st stage of infrared ovens installed successfully, final stage due
Slide 44: Humes: manufacturing upgrade programme
Building Products Humes 2-year manufacturing upgrade programme nearing completion, delivering low-cost, efficient manufacturing For personal use only Manufacturing footprint Papakura manufacturing plant automation Completed site consolidation, resulting in two nationwide pipe Humes Papakura manu
Slide 45: Strengthening and growing manufacturing positions in NZ
Building Products Building Products continuing to strengthen & grow existing manufacturing positions in NZ via ongoing innovation & investments For personal use only Improved modern & automated manufacturing plants expected to drive operational efficiency and address capacity constraints to facili
Slide 46: Questions
For personal use only Questions Page 44 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 47: Agenda
For personal use only Agenda 1. Building for tomorrow Ross Taylor / Bevan McKenzie 2. Building Products Hamish McBeath 3. Distribution Bruce McEwen 4. Concrete Nick Traber 5. Australia Dean Fradgley 6. Residential and Development Steve Evans 7. Concluding Remarks Ross Taylor Fletcher Building Limite
Slide 48: Distribution: leading trade distribution businesses in NZ
Distribution Leading trade distribution businesses in New Zealand For personal use only A leading trade distributor of building & plumbing supplies across the NZ market, with strong geographic network reach Deep customer connections, leading technical knowledge, and strong grass roots presence t
Slide 49: Distribution: sustainable performance improvement
Distribution Sustainable performance improvement through strong operating disciplines For personal use only EBIT ($m)1 EBIT Margin1 (%) and ROFE2 (%) Key Non-financial Measures c.56.5% 51.2% FY19 YTD22 c.8.7% c.$135m TRIFR3 5.8 4.8 7.4% NPS 44 27 $115m Engagement 75% 71% Carbon (‘000t)4 7 9 FY19 FY2
Slide 50: Distribution: growth from sales, pricing and cost efficiencies
Distribution Growth delivered through top line sales growth, embedded pricing disciplines and cost efficiencies For personal use only Disciplined sales growth through top line initiatives Embedded cost efficiencies Strong pricing disciplines & capability to recover inflation Sales excellence to
Slide 51: Distribution: network expansion
Distribution Network expansion centred around our customers to drive ongoing growth For personal use only Tumu stores expected to deliver earnings uplift… … and strengthen market positions in growth areas Six branches & one Frame & Truss manufacturing facility c.200 staff with deep community con
Slide 52: Distribution: scaling up Frame & Truss manufacturing
Distribution Scaling up Frame & Truss manufacturing For personal use only Investing in automation Safer operating environment for our people Improved quality product in dimension and tolerance Technology & automation enabling innovation in new products Increased capacity enabling potential f
Slide 53: Distribution: innovation in digital tools
Distribution Innovation in digital tools differentiating the business for sustainable returns For personal use only Digitising our operations / end-to-end supply chain Enhancing our customer experience Continued development of digital tools driving ease of integration into customers ecosystems M
Slide 54: Distribution: data & analytics insights
Distribution Insights via data & analytics enabling customer experience personalisation For personal use only Focus on solving key challenges with data & analytics Harnessing tech capabilities to differentiate Data & analytics team established; tech foundations built Core customer data cleansed;
Slide 55: Distribution driving growth and margin expansion
Distribution Distribution Division driving growth & margin expansion through continued innovation & operational discipline For personal use only Strong financial performance with growing EBIT margins & strong ROFE Profitable network expansion & investment in growth corridors Disciplined pricin
Slide 56: Questions
For personal use only Questions Page 54 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 57: Coffee Break
For personal use only Coffee Break Presentations will resume at 9:45am AEST / 11:45am NZT Page 55 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 58: Agenda
For personal use only Agenda 1. Building for tomorrow Ross Taylor / Bevan McKenzie 2. Building Products Hamish McBeath 3. Distribution Bruce McEwen 4. Concrete Nick Traber 5. Australia Dean Fradgley 6. Residential and Development Steve Evans 7. Concluding Remarks Ross Taylor Fletcher Building Limite
Slide 59: Concrete: NZ leader in sustainable binder & concrete
Concrete NZ leader in sustainable binder & concrete – underpinned by strong brands, unique footprint & technical capabilities For personal use only Well-positioned in NZ’s fastest growing markets, with a well-balanced mix of major sector exposures (across residential, commercial & infrastructure)
Slide 60: Concrete: sustainable margin and profit improvement
Concrete Sustainable margin and profit improvement based on strengthened market position, improved cost base and investment discipline For personal use only EBIT ($m)1 EBIT Margin1 (%) and ROFE2 (%) Key Non-financial Measures c.21.0% FY19 YTD22 c.$125m TRIFR3 2.0 2.6 14.0% c.15.0% NPS 51 61 $89m Eng
Slide 61: Concrete: sustainable growth platform
Concrete Strong sustainable growth platform driven by continuous improvement of our core business and capturing future growth opportunities For personal use only Base business: Drive operational performance & efficiency Driving growth plans: Innovation, digital & sustainability Strengthened market
Slide 62: Firth: footprint and low carbon solutions
Concrete Firth’s growth is underpinned by extended footprint & operations and fast scaling of low carbon product & solutions For personal use only From industry leading concrete products… … to low carbon construction solutions Extended Certified footprint Launching mid-FY23: EcoMix low carbon concre
Slide 63: Golden Bay: supply chain, low carbon binder, waste management
Concrete Golden Bay’s performance is driven by increased supply chain capacity, leading operational & carbon performance, and scaling of waste management For personal use only From leading carbon and operational performance… … to sustainable binder and waste management Supply chain optimisation Laun
Slide 64: Winstone Aggregates: capacity upgrades and circular offering
Concrete Winstone Aggregates is capturing growth from capacity upgrades, geographic expansion & scale-up of circular offering For personal use only From leading aggregates supplier… … to circular materials management Enhanced service offering Geographic expansion Leveraging transport capability to d
Slide 65: Concrete Division attractive platform for sustainable growth
Concrete Concrete Division offers an attractive platform for sustainable growth For personal use only Leading concrete business based on strong brands, capabilities and footprint Underlying performance improvement initiatives delivering ahead of plan Driving growth plans to capture opportuniti
Slide 66: Questions
For personal use only Questions Page 64 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 67: Agenda
For personal use only Agenda 1. Building for tomorrow Ross Taylor / Bevan McKenzie 2. Building Products Hamish McBeath 3. Distribution Bruce McEwen 4. Concrete Nick Traber 5. Australia Dean Fradgley 6. Residential and Development Steve Evans 7. Concluding Remarks Ross Taylor Fletcher Building Limite
Slide 68: Australia: well-established businesses and brands
Australia Well-established businesses & brands that operate across manufacturing & distribution, with momentum to grow For personal use only Well-positioned businesses with strong brands; scale in respective markets Leading manufacturer of decorative surfaces, plastic pipes, insulation and steel
Slide 69: Australia: material profit improvement continues
Australia Material profit improvement continues, with EBIT margin exit run-rate of c.4.7% – we are confident in the sustainability of this earnings growth For personal use only EBIT ($m)1 EBIT Margin1 (%) and ROFE2 (%) Key Non-financial Measures c.8.3% FY19 YTD22 c.$115m TRIFR3 5.4 3.5 NPS 33 15 5.2
Slide 70: Australia: margins more than doubled since FY19
Australia Australia has more than doubled margins since FY19 and will deliver 5%+ returns in FY23. There is strategic momentum to deliver +200-300bps in the medium-term For personal use only Driving operational performance through top & bottom line initiatives Pricing strategies beyond cost price
Slide 71: Laminex: heading towards double-digit EBIT margins
Australia Laminex Performing well in-market; a well-positioned business heading towards double-digit EBIT margins For personal use only Operational performance & growth strategies… Revenue Weighted Sector Exposure Ecommerce Sales Targeted segmental growth in core categories; leading the market in
Slide 72: Laminex: Haven Kitchens pilot stores
Australia Laminex Strategy in action; pilot stores for Haven Kitchens in place and alternative fibre trials underway For personal use only Haven Kitchens – Pilot Stores in Melbourne Research & Product Development Page 70 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 73: Plumbing Distribution: margins grown c.200bps
Australia Plumbing Distribution Margins have grown by c.200bps over three years; momentum will add 100bps p.a. in the medium-term For personal use only Operational performance & growth strategies… Revenue Weighted Sector Exposure SME Participation Sustainable gross profit improvement driven by seg
Slide 74: Plumbing Distribution: digital and own brand
Australia Plumbing Distribution Strategy in action; complete digital offer and own brand penetration are driving margin expansion For personal use only Tradelink into 2nd year of digital sales Own brand driving growth Digital sales $ Digital Sales DigitalGM% Margin Own brand sales 300bps 30% We are
Slide 75: Fletcher Insulation: 700bps EBIT margin improvement
Australia Fletcher Insulation Delivered 700bps of EBIT margin improvement over three years – well-positioned for future growth For personal use only Better margins from operational performance & growth Revenue Weighted Sector Exposure Optimised manufacturing and distribution footprint; investment
Slide 76: Stramit: performance in constrained steel market
Australia Stramit Stramit has performed reasonably well in a challenging year within a highly constrained domestic steel market For personal use only Better margins from operational performance & growth Revenue Weighted Sector Exposure Sheds Participation Pricing strategies have seen margin recove
Slide 77: Iplex: improving quality of earnings
Australia Iplex Enhanced strategy is improving the quality of earnings through-the-cycle For personal use only Better margins from operational performance & growth Revenue Weighted Sector Exposure Optimised our manufacturing footprint Redefined our core markets to play in more attractive profit
Slide 78: Healthy momentum delivering 5%+ in FY23
Australia Healthy momentum delivering 5%+ in FY23; line of sight to 200-300bps growth over the medium-term For personal use only Strong Locked in Strong digital Ahead of our Commitment to operational improved quality cadence ESG targets zero harm discipline of earnings Delivering 5%+ EBIT margins in
Slide 79: Questions
For personal use only Questions Page 77 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 80: Agenda
For personal use only Agenda 1. Building for tomorrow Ross Taylor / Bevan McKenzie 2. Building Products Hamish McBeath 3. Distribution Bruce McEwen 4. Concrete Nick Traber 5. Australia Dean Fradgley 6. Residential and Development Steve Evans 7. Concluding Remarks Ross Taylor Fletcher Building Limite
Slide 81: Residential & Development: growing and shaping the businesses
Residential & Development Continuing to grow and shape the businesses, building off our well- established strengths and market brands For personal use only Centred around Auckland & Christchurch, delivering new master-planned communities at scale for the last 10+ years Existing communities conti
Slide 82: Residential & Development: EBIT margins to return to c.20%
Residential & Development A strong base established with performance driven by measured growth; anticipating that EBIT margins will return to c.20% For personal use only EBIT ($m)1 Residential EBIT1 Margin & ROFE3 (%) Key Non-financial Measures Residential includes Apartments, Clever Core FY19 YTD22
Slide 83: Residential Development positioned through-the-cycle
Residential & Development Combination of pragmatic financial assumptions & strong product positioning gives us confidence our Residential Development business is well-positioned through-the-cycle For personal use only Factoring in a c.10% drop in EBIT margins in FY23 (vs. FY22F) due to EBIT Margin
Slide 84: Growing to 1,000 homes p.a. in Auckland & Christchurch
Residential & Development Growing to 1,000 homes p.a. in Auckland & Christchurch, strengthening position and providing prudent / sensible market presence For personal use only Distribution of FY22F residential sales Growing from a strong base 40% Existing locations continue to show robust demand,
Slide 85: Apartments business: targeted locations
Residential & Development Targeted locations and prudent fundamentals support our Apartments business For personal use only Auckland densification providing significant opportunities in non-central Auckland Apartments in non-CBD Locations but inner urban locations, where we already have a market p
Slide 86: Retirement adding to our communities
Residential & Development Retirement adding to our communities and expanding our product reach For personal use only A new offering for 70+ year old residents inside our established master-planned communities, targeting retirees wanting independent living with ability to access care through a heal
Slide 87: Offsite manufacturing: Clever Core
Residential & Development Offsite manufacturing delivering speed & volume benefits; high level of IP established For personal use only Third year of production, with c.100 homes in FY22F and Assembling Clever Core panels at Whenuapai c.250 homes in FY23F External customer sales through Kāinga Or
Slide 88: Industrial Development of legacy FB sites
Residential & Development Industrial Development blending rehabilitation & upgrade of legacy FB sites with new opportunities For personal use only Recent development income through decontamination & Kauri Rd, Whenuapai mixed Industrial & Residential development repositioning of FB assets at Emu Pl
Slide 89: Strong land pipeline and WIP base
Residential & Development Strong land pipeline with through-the-cycle perspective on land purchases and WIP base For personal use only Strong land pipeline and through-the-cycle perspective on Work-In-Progress (WIP) will continue to grow & get efficient, purchases but has off-ramps if market does no
Slide 90: Growth outlook for Residential & Development
Residential & Development Growth outlook underpinned by great locations, diversified product and our community offering For personal use only Division well-positioned in terms of product price points, locations, range Total Volume of Residential Units Taken To Profit of products to deliver consist
Slide 91: Questions
For personal use only Questions Page 89 | Fletcher Building Limited Investor Day Presentation | © June 2022
Slide 92: Strategy positions us well to drive shareholder value
Our strategy positions us well to drive shareholder value in the short- and long-term For personal use only 01 02 03 04 05 Significant Plans and Established Strong Well-positioned near-term runway for pipeline of enduring for macro profit growth further margin growth financial trends improvement i
Slide 93: 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