Fletcher Building Limited · NZX:FBU

Fletcher Building — Investor Day (June 2023)

95 slides from Fletcher Building's investor day presentation, Jun 21, 2023

Slide 1: Fletcher Building Investor Day June 2023
Fletcher Building Investor Day June 2023 21 June 2023
Slide 2: Proven & capable leadership team with strong tenure
Proven & capable leadership team with strong tenure 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 Executive Officer Safety Offi
Slide 3: Investor Day Agenda
Investor Day Agenda 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 mins Coffee break 8:1
Slide 4: Outlook
Outlook Ross Taylor, CEO Fletcher Building Limited
Slide 5: FY23 EBIT expected to be c.$800m; margins >9%
FY23 EBIT expected to be c.$800m; margins >9%, solid performance despite softer market & wet weather in 2H23 EBIT ($m) and EBIT Margin (%) Drivers of FY23F Financial Performance ▪ NZ & AU Materials & Distribution: market activity softer in 2H23, also impacted by wet weather. Overall FY23 900 8.9% >9
Slide 6: FY24 outlook: market to tighten further, performing through the cycle
FY24, expect market to tighten further, focused on performing through the cycle (TTC), will continue with committed growth investments ▪ Expect c.8% market volume decline in FY24 vs. FY23, softer residential, ongoing solid NZ & AUSTRALIA commercial / infrastructure MATERIALS & ▪ Focused on preservin
Slide 7: Construction legacy projects nearing conclusion
Construction legacy projects nearing conclusion; remaining risks to manage are related mainly to claim settlements 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 FY24 ▪ Project has lodg
Slide 8: Medium Term Outlook
Medium Term Outlook Fletcher Building Limited
Slide 9: FB is focused on the NZ & AU Building Sector
FB is focused on the NZ & AU Building Sector: this sector is attractive, resilient & is supported by long-term macro tailwinds Isolated markets Population growth Disruption opportunities Stable government Sector generally & region Population growth specifically have been slow Geographic isolation &
Slide 10: Diverse set of businesses across the building value chain
FB has a highly attractive & diverse set of businesses across the building value chain 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 $6.5b AU Materials 27% C
Slide 11: We invest in businesses across the building products value chain
We invest in businesses across the building products & solutions value chain that align with our purpose 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 achieve, SUFFICIENT SCAL
Slide 12: Proven set of operating disciplines
We drive performance in each business through a now proven set of operating disciplines OPERATIONAL & CAPABLE & INNOVATION & SAFETY CUSTOMER FINANCIAL SUSTAINABILITY HIGHLY ENGAGED GROWTH PERFORMANCE PEOPLE Page 12 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 13: 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… 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 Distribution Concrete Australia
Slide 14: 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 Safety: good progress continues Sustainability: 30% lower carbon by 2030, net zero by 2050 Now Target Now Target Total Recordable Injury 2,000 1,800 Carbon (CO2) Emissi
Slide 15: Next leg of performance improvements
Our emphasis to drive the next leg of performance improvements now moves to our other key operating disciplines MAINTAIN FOCUS & MOMENTUM IN THESE AREAS OPERATIONAL & CAPABLE & SAFETY CUSTOMER INNOVATION & SUSTAINABILITY FINANCIAL HIGHLY ENGAGED GROWTH PERFORMANCE PEOPLE 3.2 40 >9% $800m+ -13% 26 CO
Slide 16: Customer performance from Good to Great
We now want to get our Customer performance from “Good” to “Great” across all our businesses 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 offerings, product av
Slide 17: 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” Engagement: focus on continued improvement ▪ Our engagement target for FB Group is >40 – global upper Now Target quartile Employee Engagement Rating Employee Engagem
Slide 18: Strong growth outlook with $800m+ of commitments
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 Waipapa Timber Laminex Taupō Comfortech FY24 FY25 FY26 FY27 FY28 $800m+ in committed growth capex @ 15% ROFE Full run-rate returns
Slide 19: 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 FY24 FY25 FY26 FY27 FY28 Macro Residential headwinds Market tailwinds Margins Preserve Further operating margin improvements / +
Slide 20: Medium Term Outlook
Medium Term Outlook Bevan McKenzie, CFO Fletcher Building Limited
Slide 21: Solid base of operational performance
We have established a solid base of operational performance 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 businesses ▪ Fixed cos
Slide 22: FY23 margins delivered in a market softening off the peak
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 Market volumes This year: FY23 vs. 2H22 Outlook: FY24 vs. FY23 ~7% ~8% ~5% ~8% Outlook has heightened degree of uncertainty, esp. in NZ residential. C
Slide 23: Medium term sectors supported by macro tailwinds
In the medium term, our sectors are supported by solid macro tailwinds Residential Commercial Infrastructure ▪ Long-term housing stock ▪ Commercial investment continues ▪ Infrastructure deficit will require undersupply in a positive trajectory, esp. in decades of large investment across logistics, h
Slide 24: Drivers of medium term margin expansion
We are focused on locking-in the operational gains we have made and driving further margin expansion over the medium term Drivers of Medium Term Margin Expansion ▪ Investment in growth adjacencies NZ & AUSTRALIA – $800m+ committed, mainly organic NZ focus +50-100 MATERIALS & bps DISTRIBUTION ▪ Custo
Slide 25: Growth investment programme well advanced
Growth investment programme well advanced, strong ROFEs & earnings uplift $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 acquisitions in FY24 Circ
Slide 26: Committed growth investment phased over FY23-FY26
Committed growth investment of $800m+ is phased over FY23-FY26 Committed Growth Capex ($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 Note: Excludes WWB Tau
Slide 27: Customer outcomes linked to performance metrics
Customer: great customer outcomes are strongly linked to performance across all key metrics 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 customer NPS FB Average Page
Slide 28: Customer performance variable across business units
Customer: our performance is solid, but too variable across BUs – consistent delivery at target levels represents a massive opportunity in our industry FB Relationship1 NPS Results FY23 – by Business Unit Competitive Benchmark NPS Results 2022-23 70 Our 60 target: 55 58 Best Fletcher BU 50 Current F
Slide 29: Improving service and solutions in four areas
Customer: we are focused on improving service and solutions in four areas PRODUCT QUALITY, RESPONSIVE, JOINED UP THE AVAILABILITY, & DELIVERY CUSTOMER SERVICE FUNDAMENTALS Right product, right place, Seamless customer experience & on time, every time – DIFOTIS communication across all channels BRING
Slide 30: Housing: positioned to grow unit sales in future
Housing: we are well-positioned to grow unit sales in the future – but only once we are confident of a NZ market recovery Valuation of Land on Balance Sheet Growth Potential in Stronger Market (units) ▪ High-quality communities built at scale, avg. c.$1bn price <$1m = deepest part of market 1,200+ ▪
Slide 31: Construction legacy projects cash outflow before claim recoveries
Construction legacy projects are a cash outflow in FY23-FY24 before assumed claim recoveries in FY25 Forecast FCC Legacy Project Cash Flows ($m) ▪ Buildings: remaining net cash outflows relate to losses on fire reinstatement works and final ‘BAU’ works; outflows are c.125 concentrated in FY24 follow
Slide 32: Underlying cash flows and balance sheet remain robust
Underlying cash flows and balance sheet settings remain robust 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 facilities c$2.8b 525 c.50
Slide 33: Well positioned for cycle with clear pathway for growth
Well positioned for cycle, disciplines & culture driving performance, with clear pathway for growth ▪ Solid FY23 delivered in softer trading conditions ▪ FY24 focus on preserving operational gains as market reverts to mid-cycle levels ▪ Construction legacy nearing completion, some risk to manage, go
Slide 35: Concrete
Concrete Nick Traber, CE Fletcher Building Limited
Slide 36: NZ leader in sustainable binders & concrete
Concrete NZ leader in sustainable binders & concrete with leading positions based on strong brands, unique footprint & technical capabilities ▪ Unique NZ wide footprint & network and well-balanced sector exposure mix ▪ Strong technical capabilities & leading brands ▪ Strong positions - only domestic
Slide 37: Resilient business model with strong FY23 performance
Concrete Resilient business model to perform through the cycle with strong FY23 performance despite a softening market, inflation & weather events Key financial metrics Resilient business model 2001 c.19% ROFE c.14.0% 14.0% ▪ Balanced sector exposures with differentiated offers for 180 EBIT 1602 mar
Slide 38: Initiatives to drive mid-term performance
Concrete Initiatives to drive mid-term performance through innovation, digital & sustainability customer solutions ▪ Differentiated and innovative solutions supporting asset owners and specifiers to decarbonise the built environment CUSTOMER ▪ Making it easy for customers to trade with us, leveragin
Slide 39: Leading transition to low carbon construction
Concrete Leading the transition to low carbon construction with industry’s largest range of low carbon products & solutions 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 recyclable foundation s
Slide 40: Circular economy waste management and recycling platform
Concrete At the forefront of the circular economy with a platform to fast-scale waste management and recycling services offering >100,000 tonnes waste recycled or reused in FY23 ALTERNATIVE RAW MATERIALS ALTERNATIVE FUELS Reclaimed waste replacing virgin raw Waste diverted from landfill, replacing c
Slide 41: Pipeline of opportunities across division
Concrete Strong pipeline of opportunities across Division & organic and bolt-on adjacencies to drive future growth FY24 FY25 FY26 FY27 FY28 New flagship Expanded bagged Roading and permeable FIRTH / DRICON Auckland plant product range solutions Investment in production & supply chain to GOLDEN BAY d
Slide 42: Leading platform for sustainable growth
Concrete Leading platform for sustainable growth based on resilient business model with a portfolio of initiatives to innovation, digital & sustainability ▪ Improved performance in FY23 despite a softening market, high inflation and weather events TTC RESILIENCE ▪ Resilient business model, well-posi
Slide 44: Building Products
Building Products Hamish McBeath, CE Fletcher Building Limited
Slide 45: Leading platform for sustainable growth solutions provider
Building Products Leading platform for sustainable growth based solutions provider with unrivalled network ▪ Four light building products in-country manufacturing businesses (only manufacturer of plasterboard & glasswool insulation); strong brands & all #1 or #2 market positions ▪ Balanced Metals po
Slide 46: Continued investment positions division for TTC performance
Building Products Continued investment and performance improvement has division well- positioned for sustained TTC performance 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% 16.0% EBIT2 margin 14.0%
Slide 47: Investment supports medium term performance
Building Products Continued investment and performance improvement will support medium term performance ahead of larger organic investments commissioning ▪ Best-in-class service standard set by WWB and Comfortech ▪ Customer & employee experience improvements with expanded digital ordering solutions
Slide 48: Tauriko WWB plant on track and budget
Building Products Tauriko WWB plant – project on track & budget, plasterboard production trials commenced 15 May 23 How we drive WWB’s performance ▪ Increased ability to innovate on products, by allowing for better formulation optionality & changeover speeds ▪ Onsite warehousing combined with improv
Slide 49: Growth opportunities through adjacencies and M&A
Building Products Growth opportunities through organic adjacencies & disciplined M&A give the division a longer term growth trajectory FY24 FY25 FY26 FY27 FY28 Full run-rate @ LAMINEX TAUPŌ $270m capex EBIT contributing 15% ROFE WAIPAPA TIMBER Plant upgrade / double shift Further EBIT contribution C
Slide 50: Waipapa Timber transacted; Year 1 earnings c.$12.5m EBIT
Building Products Waipapa Timber transacted 9 Jun 23, post OIO approval; Year 1 earnings c.$12.5m EBIT 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 facilitate knowledge transfe
Slide 51: Medium term portfolio outlook
Building Products Medium term portfolio outlook ▪ 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 if volumes are there,
Slide 53: Distribution
Distribution Bruce McEwen, CE Fletcher Building Limited
Slide 54: Leading trade distribution businesses in New Zealand
Distribution Leading trade distribution businesses in New Zealand ▪ 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 operations across New Zealan
Slide 55: Well-positioned for through-the-cycle performance
Distribution Well-positioned for through-the-cycle performance 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 6.0% EBIT 120 100 5.0% ▪
Slide 56: Relentless customer focus and efficiency improvements
Distribution Performance will be driven by relentless customer focus, supported by ongoing efficiency improvements to deliver higher margins ▪ Best in class customer support – underpinned by customer centric leadership ▪ Capability build of our sales & support teams – Sales & Service Transformation
Slide 57: Successful integration of Tumu Hawkes Bay acquisition
Distribution Concrete Successful integration of the Tumu Hawkes Bay acquisition 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 into the Distribution
Slide 58: Growth opportunities through automation, efficiencies & digital
Distribution Growth opportunities for market share gains through automation, efficiencies & digital FY24 FY25 FY26 FY27 FY28 Sales & Service transformation, best in class customer service PLACEMAKERS & TUMU Network format optimisation Optimised network/DC fulfilment/densification PLACEMAKERS New aut
Slide 59: Investment in automated frame & truss manufacturing
Distribution Concrete Investment in automated frame & truss manufacturing driving efficiencies and new capability Continuing to invest in our future ▪ Investment in a new automated frame & truss plant centred in Auckland ▪ Technology & automation enabling greater efficiency and new product innovatio
Slide 60: Distribution well-positioned for TTC performance
Distribution Concrete Distribution division well-positioned for TTC performance, and continuing to drive growth & margin expansion ▪ Strong financial performance, with growing EBIT margins & strong ROFE TTC RESILIENCE ▪ Disciplined pricing methodologies & capability to offset inflation Sustainable ▪
Slide 62: Coffee Break
Coffee Break Presentations will resume at 8:25am AEST / 10:25am NZT Page 62 | Fletcher Building Limited Investor Day Presentation | © June 2023
Slide 63: Construction
Construction Phil Boylen, CE Fletcher Building Limited
Slide 64: Leading NZ infrastructure construction & maintenance specialist
Construction Fletcher Construction is a leading NZ focused infrastructure construction & maintenance specialist ▪ 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 pipeline of public-secto
Slide 65: FCC's size and focus reset to better quality work
Construction FCC’s size & focus has been reset to a lower volume of better quality work 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% EBIT margin civil wor
Slide 66: Committed forward order book at 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.$2.5b revenue Orderbook Profile ($bn) Profile of forward work 1.4 Total order Targeted ▪ Forward order book primarily lower-risk forms of book of growth to contra
Slide 67: Detailed programme of works, repeatable self-delivered scope
Construction Detailed programme of works, repeatable self-delivered scope 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 ▪ $1.2b+ contract over
Slide 68: Responding to critical infrastructure requirements across regions
Construction Responding to critical infrastructure requirements across the regions 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 estimated >$850m1 over 6
Slide 69: Margin improvement through lower-risk contracts
Construction Margin improvement through lower-risk form of contracts 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) ▪ RiverLink Wellington
Slide 70: Margin improvement to get to 5% EBIT margin
Construction Focus is on delivering margin improvement over the medium term to get to 5% EBIT margin 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 & lower-risk major project
Slide 71: Medium term portfolio outlook
Construction Medium term portfolio outlook ▪ ~$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 grow beyond $4b by Tar
Slide 73: Residential and Development
Residential and Development Steve Evans, CE Fletcher Building Limited
Slide 74: Leading developer with strong reputation for quality build
Residential & Development Leading developer with strong reputation for quality build ▪ Developer of residential homes & communities, apartments & retirement living units in Auckland & Christchurch markets ▪ Only remaining at scale OSM supplier in New Zealand; projects located in market with the most
Slide 75: 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 Key financial metrics Strong attributes and skillset established 2501 c.19% ROFE 21.4% c.23.4% ▪ Developments in strong / well-proven locations. Good EBIT2 margin 20.
Slide 76: Positioned for market reality; targeting c.700-800 unit sales
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 Distribution of FY23F residential unit sales Managing well throu
Slide 77: Managing medium term performance with good disciplines
Residential & Development Managing medium term performance with good disciplines in place 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 market turns VIVID ▪ Co
Slide 78: Waiata Shores delivers 100+ homes p.a.
Residential & Development Raw land to new community - Waiata Shores continues to deliver 100+ homes p.a. 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 ▪ As Waiata Shores be
Slide 79: 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 Flex to market conditions, ready to go when market returns ▪ Current market supports c.700-800 unit sales p.a. without cannibalising price ▪ Strong brand & mark
Slide 80: Partnering with iwi and government
Residential & Development Partnering with iwi and government gives access to more land, and leads to great outcomes How we are driving performance Okahukura Tauoma ▪ Having partnerships with government & iwi allows access to previously unavailable land ▪ Partnerships are long term, with multiple pro
Slide 81: 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 ▪ Holding market volume delivery through the bottom of the cycle ▪ Management of funds through build and development WIP but TTC RESILIENCE using the
Slide 83: Australia
Australia Dean Fradgley, CE Fletcher Building Limited
Slide 84: Well-established light building products & distribution businesses
Australia Well-established light building products & distribution businesses which have delivered margin improvement with more to come ➔ Significant ▪ near-term Leading manufacturer of decorative surfaces, plastic pipes, insulation, steel roofing, sheds and doors ▪ profit growth Distribution busines
Slide 85: Operational disciplines and margin growth position Australia for this cycle
Australia Australia’s operational disciplines & margin growth has it soundly positioned for this cycle 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 existing customers 150 4
Slide 86: Medium term performance driven by product development and digital
Australia Medium term performance driven by new product development, driving digital & improving customer experience ▪ Ongoing focus on DIFOTIS continues to lift NPS ▪ Building out digitally based omni-channel solutions providing customers choice in how they transact CUSTOMER with us, attracting and
Slide 87: 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 New revenue streams driving incremental online sales ▪ Laminex digital journey commenced 2019, now largest Digital NPS 49 digital sales in the group acc
Slide 88: 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 FY24 FY25 FY26 FY27 FY28 Targeted automation Product expansion to new Haven kitchen model LAMINEX investments reducing cost decorative categories distribution mat
Slide 89: Stramit delivering margin accretive sheds & doors
Australia Category focus: Stramit delivering margin accretive sheds & doors segments 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 allocated to meet futur
Slide 90: 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 ▪ Strong operational disciplines in place, demonstrating our ability to get price TTC with lift in customer metrics TTC RESILI
Slide 92: Well positioned for cycle with clear pathway for growth
Well positioned for cycle, disciplines & culture driving performance, with clear pathway for growth ▪ Solid FY23 delivered in softer trading conditions ▪ FY24 focus on preserving operational gains as market reverts to mid-cycle levels ▪ Construction legacy nearing completion, some risk to manage, go
Slide 93: Important Information
Important Information 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 certain sections of this pre
Slide 94: Appendix – Humes moved from Building Products to Concrete
Appendix – Humes moved from Building Products to Concrete during FY23 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 1,471 1,610 835 Gross re
Slide 95: Sustainability important part of our DNA
Sustainability important part of our DNA “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 Member of S&P Sustainabil

Fletcher Building — Investor Day (June 2023) on 6ix

Fletcher Building — Investor Day (June 2023)

Slide 1: Fletcher Building Investor Day June 2023

Slide 2: Proven & capable leadership team with strong tenure

Slide 3: Investor Day Agenda

Slide 4: Outlook

Slide 5: FY23 EBIT expected to be c.$800m; margins >9%

Slide 6: FY24 outlook: market to tighten further, performing through the cycle

Slide 7: Construction legacy projects nearing conclusion

Slide 8: Medium Term Outlook

Slide 9: FB is focused on the NZ & AU Building Sector

Slide 10: Diverse set of businesses across the building value chain

Slide 11: We invest in businesses across the building products value chain

Slide 12: Proven set of operating disciplines

Slide 13: Material margin performance improvements across all businesses

Slide 14: Progress in Safety & Sustainability

Slide 15: Next leg of performance improvements

Slide 16: Customer performance from Good to Great

Slide 17: Industry leading employee engagement

Slide 18: Strong growth outlook with $800m+ of commitments

Slide 19: Well positioned for tougher FY24, then margin expansion and growth

Slide 20: Medium Term Outlook

Slide 21: Solid base of operational performance

Slide 22: FY23 margins delivered in a market softening off the peak

Slide 23: Medium term sectors supported by macro tailwinds

Slide 24: Drivers of medium term margin expansion

Slide 25: Growth investment programme well advanced

Slide 26: Committed growth investment phased over FY23-FY26

Slide 27: Customer outcomes linked to performance metrics

Slide 28: Customer performance variable across business units

Slide 29: Improving service and solutions in four areas

Slide 30: Housing: positioned to grow unit sales in future

Slide 31: Construction legacy projects cash outflow before claim recoveries

Slide 32: Underlying cash flows and balance sheet remain robust

Slide 33: Well positioned for cycle with clear pathway for growth

Slide 34: Questions

Slide 35: Concrete

Slide 36: NZ leader in sustainable binders & concrete

Slide 37: Resilient business model with strong FY23 performance

Slide 38: Initiatives to drive mid-term performance

Slide 39: Leading transition to low carbon construction

Slide 40: Circular economy waste management and recycling platform

Slide 41: Pipeline of opportunities across division

Slide 42: Leading platform for sustainable growth

Slide 43: Questions

Slide 44: Building Products

Slide 45: Leading platform for sustainable growth solutions provider

Slide 46: Continued investment positions division for TTC performance

Slide 47: Investment supports medium term performance

Slide 48: Tauriko WWB plant on track and budget

Slide 49: Growth opportunities through adjacencies and M&A

Slide 50: Waipapa Timber transacted; Year 1 earnings c.$12.5m EBIT

Slide 51: Medium term portfolio outlook

Slide 52: Questions

Slide 53: Distribution

Slide 54: Leading trade distribution businesses in New Zealand

Slide 55: Well-positioned for through-the-cycle performance

Slide 56: Relentless customer focus and efficiency improvements

Slide 57: Successful integration of Tumu Hawkes Bay acquisition

Slide 58: Growth opportunities through automation, efficiencies & digital

Slide 59: Investment in automated frame & truss manufacturing

Slide 60: Distribution well-positioned for TTC performance

Slide 61: Questions

Slide 62: Coffee Break

Slide 63: Construction

Slide 64: Leading NZ infrastructure construction & maintenance specialist

Slide 65: FCC's size and focus reset to better quality work

Slide 66: Committed forward order book at 1.8x revenue

Slide 67: Detailed programme of works, repeatable self-delivered scope

Slide 68: Responding to critical infrastructure requirements across regions

Slide 69: Margin improvement through lower-risk contracts

Slide 70: Margin improvement to get to 5% EBIT margin

Slide 71: Medium term portfolio outlook

Slide 72: Questions

Slide 73: Residential and Development

Slide 74: Leading developer with strong reputation for quality build

Slide 75: Ability to flex scale & typology in proven locations

Slide 76: Positioned for market reality; targeting c.700-800 unit sales

Slide 77: Managing medium term performance with good disciplines

Slide 78: Waiata Shores delivers 100+ homes p.a.

Slide 79: Maintaining control of funds until housing market recovers