Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (November 2006)
27 slides from Fletcher Building's investor presentation, Dec 1, 2006
Slide 1: Analysts Briefing
Analysts Briefing November 2006 Chris Ellis Chief Executive, Building Products FletcherSuiicing
Slide 2: Cautionary Statement
Cautionary Statement 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 differ materiall
Slide 3: Building Products Division - Structure
Building Products Div ision - Structure & & & & & & Plasterboard Insulation Aluminium Metal Roof Tiles Sinkware Other Businesses Aluminium Metal Roo Ties
Slide 4: Results Record (Restated)
Results Record (Mestated) June 2005 December 2005 June 2006 (12 months) {6 months) (12 months) $m's Operating Revenue* 591 326 629 EBIT 145 76.7 142.3 Margin 25% 24% 23% Total Funds Employed 455 ATT 511 EBIT/Funds 33% 32% 28% * excludes inter-company revenue * Proforma returns based on 12 months of
Slide 5: Growth
Growth Cl Organic Growth i Operational Performance Improvement « Manufacturing and Market Performance {KPI's ie IFOTIS, OEE} * Margin improvement, EBIT, Funds, Cash iit Targeted geographic expansion it =» Housing envelope infill / adjacent product development
Slide 6: House envelope infill
Mouse envelope infill 3 Fletcher Insulation Fletcher Insulation sarking overlay ceiling batts wrap FAL alumi Windows and déors Gib® plasterboard
Slide 7: Growth
Growth (1 Major Acquisitions i =Tasman Building Products (October 2003) i Amatek (March 2005} a [Insulation Solutions (Glasswool and Foil Insulation} if Forman Group (November 2006)
Slide 8: Key Strategies
Key Stratagies (1 Market Driven Operational Excellence IFOTIS OEE « Utilisation rates « Change over times Flexibi Organisation alignment ity to support differentiation based on high service levels Margin improvement
Slide 9: Key Strategies
Koy Strategies (1 Geographic Diversification Metal Roof Tiles Uw ti te Value proposition based on product performance Product well established in NZ new-build Global niche position with growth potential o USA a Europe a Japan Potential to increase rate of growth through in-region manufacture Tasman
Slide 10: Plasterboard - Key Facts
Plasterboard ~ Key Facts © winstone Wallboards Lid ad Products Comments i = Plasterboard t@ Sole Manufacturer of Plasterboard in New th §=Compounds/Accessories Yealand i = Systems w 95% Market Share @ 2 Manufacturing Plants {Auckland and Christchurch} Distribute through merchants, including all mojo
Slide 11: Plasterboard
Plasterboard © winstone Wallboards Lid Bs GIB The Winstone Wallboards Strategy is based on ‘Service and Operational Excellence Supported by Solutions’ Strategy Fundamentals Outcomes @ Service Promise @™ Product Quality Industry Service Awards m@ Hassle Free =) @ 95% Market Share a Lowest Cost @ Stro
Slide 12: Plasterboard
Plasterboard © winstone Wallboards Lid Bs Gl Services New Products The new distribution centre, The Gate. has led to an increase in IFOTIS GIB MaxSet® 90 is taking share from imported product Market Segmentation GIB Ultraline® PLUS Lining System is targeted at superior lining outcomes for high value
Slide 13: Insulation - Key Facts
Fletcher ke Insulation ~ Key Facts — Ci Insulation has superior competitive infrastructure, technology and brands including: Ut Manufacturing facilities — 4 out of 5 of the Glasswool (GW) plants in Australasia, plus 2 laminated foil plants and | polyester plant An exclusive License Agreement with Ow
Slide 14: Insulation has most of the Plants
Insulation has most of the Plants - her Bass 4 of S Glasswool Plants ir j for ES a O oe m@) Fletcher Insulation | | Glasswool oe Lo. Lo a io ia Ad Q og ra & = Qo S — ee LD GW Plants Annual Tonnes (Capacity) Auckland 10,000 12% Christchurch 4,000 5% Sydney 12,000 15% Melbourne 25,000 31% CSR 30,000 3
Slide 15: Insulation comprehensive Branch Network
Insulation comprehensive Branch Network - Modern and well positioned a O oe m@) Hon her yD OE ge Ge a ae - a Le a Z i. Se Ce oo ee zy La Le Le oo ( a ee ay ay SS
Slide 16: Insulation - Growth
Fletcher Bas insulation - Growth cae Sots {) Insulation enjoys high (75% of Australasia) share in a high margin and growing market Ci The Australasian insulation market will grow in the next 10 years as: it Climate change issues necessitate more intensive energy demand management in buildings it ==
Slide 17: Regulation likely growth driver
her Bas Boal Regulation likely growth driver j Flet Austraila's insulation Regulatory Cade Is roughly half that of similar OECD Countries atti) abi, R Value Batt Required in C w L WUSA Climate Equivalent Darwin Brisbane Adelaide Perth Sydney Melbourne Hobart Canberra
Slide 18: Fletcher Aluminium - Key Facts
Fletcher Aluminium ~ Key Facts Comments i Vertically integrated manufacturing plant. Extruders of exclusively designed aluminium profiles thal are powdercoated or anodised, packaged on site and dispatched throughout New Zealand i Revenue 70%- windows and doors 30% — extruded shapes lt No. 2 in the N
Slide 19: Fletcher Aluminium - NZ Distribution Network
Fletcher Akeniniuin ~ MZ Distribution Network Ss] @ Full range of window and door products in Residential, Commercial and Composite Systems i Unique products to market in Residential Systems « Foldback Bifold * Euroslider Sliding Door * Evurostacker Sliding Door ™% Comprehensive coverage of New Zeal
Slide 20: Fletcher Aluminium
Fletcher Alurniniurr ‘NEW ZEALAND: : ® Designer and manufacturer of premium architectural window and door systems and other aluminium products to both domestic and international customers Franchisee distribution network. Single site extrusion and finishing facilities Launch a number of innovative pr
Slide 21: Metal Roof Tiles
Metal Reof Tiles | Rg AHI ROOFING DECRA, ‘A FLETCHER BUILDING COMPARY eee « Largest manufacturer of steel roof tiles world wide, with plants in Auckland, Malaysia and California * Technology and new products developed in-house to meet market demand « Planning to establish manufacturing in Europe to
Slide 22: Domestic & Export Locations
LP EGeigikt| Domestic & Export Locations a FLeTdien BHTLDINE ceMPasEE Employees = 380 Volume = 15m tiles p.a. = 7m sq mtrs roofing Owned Plants - Auckland, Nilai (Malaysia), Corona (California) Licensed Plants - Belgium, Denmark, Indonesia, Chile Domestic Sales Offices - Auckland, Wellington, Christ
Slide 23: Tasman Sinkware - Key Facts
TASMAN Tasman Sinkware ~ Key Facts SINKWANE Employees = 100 O Head Office & Manufacturing Plant (Adelaide) oS Branch Offices (Brisbane, Sydney, Melbourne} ° Australian Agents (Canberra, Darwin, Hobart, Perth, Townsville, Wagga Wagga} @ US Warehouses / Offices (Corona, Ohio) @ overseas agents (NZ, Ca
Slide 24: Tasman Sinkware - Performance
Vesren Sinkware ~ Perlormeance Sink Sales Volumes (indexed to 2002) North American Exports 2002 2003 = 2004 2005 2006 FYo4 FY02 FY03 FYO4 FYOS FYO6 Note: 2006 Domestic volume fell in a declining market but a higher mix of Oliveri {premium product} volume, as well as strong North Amercian exports, ha
Slide 25: Tasman Sinkware - Growth Strategies
Vasroan Sinioweare - Growth Suelegies TASMAN Domestic = Maximise local opportunities for new product ° innovation & continue to broaden distribution lekeland (QUALITY STABRLESS STEEL SIKKS = “Bolt-on” accessories O Le) * Introduce imported range of sinks to improve eG competitiveness at bottom end o
Slide 26: Forman Group
Forman Group FORMAN Comments _ i Distributors and installers of Insulation, Ceiling and Wall Systems Manufacturers of Insulation and Foam Systems Leading market position in the commercial and industrial building markets for insulation and Ceiling and Wall Systems i Notional distribution and installa
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