Fletcher Building Limited · NZX:FBU

Fletcher Building — Investor Day (June 2015)

13 slides from Fletcher Building's investor day presentation, Jun 18, 2015

  1. Slide 1: Investor Day Brisbane

    For personal use only Investor Day Brisbane 18 June 2015

  2. Slide 2: Steve Evans, Chief Operating Officer - Housing

    For personal use only Steve Evans Chief Operating Officer - Housing 2 Fletcher Building Investor Day Brisbane | © June 2015

  3. Slide 3: Disclaimer

    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 are forward looking, Fletcher Building’s actual results could diff

  4. Slide 4: Business Model Overview

    Business Model Overview For personal use only “Core business” “Infills & Adjacencies” Development Sourcing Model Lot Development Land Development Partnerships  Purchase of finished lots  Purchase of raw land and  Relationships with public and ready for building from conversion to residential use

  5. Slide 5: Lot development: Historic core business

    Lot development: Historic core business For personal use only  Historic business based on bulk purchase of Number of Dwellings Sold sections from developers with staged delivery 1,200  Attractive lot pricing achieved through: 1,000 – Scale of volume commitment we make 800 600 – Preparedness to con

  6. Slide 6: Land development: An important contributor to growth

    Land development: An important contributor to growth For personal use only  FB re-entered land development with the purchase of the Manukau Golf Course in 2013  Land developments are typically 8 – 10 year build outs over multiple stages  Acting as the developer of raw land allow FB to: – Capture

  7. Slide 7: Partners: Working with the land holder

    Partners: Working with the land holder For personal use only  The Partnerships’ business encompasses relationships with public and private land holders to facilitate development opportunities  Early successes include Awatea, Welles and Colombo in Christchurch  Acting in Partnership benefits us :

  8. Slide 8: Auckland Operating Areas

    Auckland Operating Areas For personal use only Rodney Central  Peninsula Golf  Opportunities largely development – centred on Stonefields earthworks underway and Three Kings North Shore  Currently building in Mid-Auckland / Howick Greenhithe  Beachlands earthworks  Difficult contour in underway

  9. Slide 9: Canterbury Operating Areas

    Canterbury Operating Areas For personal use only Welles Colombo  Partnership with  Partnership with MBIE* MBIE*  114 Apartments  69 Terraces Awatea Halswell  Partnership with  Farringdon MBIE* underway  241 standalone  50 homes dwellings Rolleston  90 homes *MBIE: Ministry of Business, Inno

  10. Slide 10: Fletcher value proposition

    Fletcher value proposition For personal use only Ability to source  Lot and raw land model mean we are able to put our 1 attractive land foot on our choice of developments positions  Business is highly sophisticated in delivering what High quality customers want in terms of the spec/value trade-of

  11. Slide 11: Housing growth strategy has three key elements

    Housing growth strategy has three key elements For personal use only Leverage developer relationships to grow lot pipeline 1 Grow the Core Increase land acquisition as proportion of portfolio Increase apartment delivery 2 “Infills & Development partnerships: public and private 1,000+ Adjacencies” Dw

  12. Slide 12: Managing risks

    Managing risks For personal use only Fletcher Living Risk Management Framework Demand Side Supply Side Ongoing risk Risk management tools Risk management tools Ongoing risk management in the event of market in the event of market management disruption disruption  Presales of product  Change owners

  13. Slide 13: Capital intensity

    Capital intensity For personal use only Forecast Quarterly Payments on Current Land 1 Sep 15 – Penihana, Karaka, Orurangi Road Commitments $70m 2 Sep 16 - MGC, Karaka, Penihana, Hobsonville $60m 3 Quarterly Payment 3 Sep 17 - Karaka, Penihana, $50m 1 2 Peninsula $40m $30m $20m $10m $0m Jan-20 May-20

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