Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (November 2006)
19 slides from Fletcher Building's investor presentation, Nov 30, 2006
Slide 1: Analysts Briefing
Analysts Briefing November 2006 Tony Te Au Acting Chief Executive, Steel 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: Results Record (Restated)
Results Record (Restated June 2005 December 2005 June 2006 (12 months) {6 months) (12 months) $m's Operating Revenue* 733 550 1082 EBIT 82 38 93 Margin 11% 7% 9% Total Funds Employed 428 439 461 EBIT/Funds 22% 17% 20% * excludes inter-company revenue * Proforma returns based on 12 months of Amatek n
Slide 4: Reporting Structure
Reporting Structure oD ee iy EEA aber a 7 Le Le a Ly, 7 ve oS talye a WES er 2¢ oe i Fic ch a id i ee nber 2( Le, ( 7 of rrrrrrti“ et—t—“‘“‘“‘<‘(‘(‘<‘<‘<‘<‘<‘<‘<‘<‘a‘<‘<‘“(‘<‘i‘<‘i‘é‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘i‘éywl
Slide 5: Key Strategies
Key Strategies CJ Be operationally excellent in support of business unit market strategies w |FOTIS levels # OEE, Utilisation rates w Change over times, extend branch capability « Lead times w |In-market, high-service, flexible manufacturing operations « Organisation alignment behind BU strategies L
Slide 6: Key Strategies
Key Strategies CI Internal growth initiatives » New products and product enhancement opportunities « New branches in targeted areas « Expand organisational capability « Invest and develop technologies in our existing businesses « But likely to be small rr iy / _ | oa ce oe a oe SS ES a a ee Ll ES Ll
Slide 7: Growth
Growth CL] Organic Growth « Competent management " Focus on performance (KPI's i.e OEE, IFOTIS) " — EBIT, Funds, Cash « — Strong market and market share growth u Extend markets LC! External Growth "Likely to be Australasian focused » Related or complimentary product opportunities wren " yy LD C TURE
Slide 8: Rollforming - Australia Stramit
Roliforming - Australia Stramitw * Stramit Building Products is a leading Australian manufacturer of steel building products, including roofing, walls, gutters and fascias, frames and trusses, purlins, flooring and structural formwork, with turnover in excess of A$500m «» Acquired as part of Amatek
Slide 9: Rollforming - Australia Stramit
Rollforming - Australia Stramitw « Service driven — be the easiest supplier to do business with » Service optimised through decentralised branch operations # Continued investment in branch capability with Speed Deck Ultra milis installed in 2006 at Cairns, Maddington and Adelaide o » New branch open
Slide 10: Australian Market Forecasts
10 lian Market Forecasts Australia - Residential Work Done $m $m zooi2 200203 = zNeaoa = 2008S ZOOS neo? = n0ries = 28/08 Australia - Non - Residential Work Done $m 25000, 20000, 2002 200203 «= 2008/04 © 200408 «onto «= zoneo? «== nits = a0n8/08 Source: BIS Shrapnel Work Done $ Residential and Non-R
Slide 11: Rollforming - New Zealand Dimond
Rollforming -New Zealand Dimend « The leading NZ supplier of metal purlins, roofing, cladding and composite flooring systems « Drive on innovation - new capability introduced with automated folders installed in Auckland and Christchurch » Dimond operates out of 12 regional sales centres ey ty \ Wete
Slide 12: Coatings - New Zealand & Pacific
12 Coatings - New Zealand & g | PACIFIC « A leading New Zealand COR COATERS manufacturer of pre-painted metal - products used in the manufacture of both residential and commercial roofing, cladding, and rainwater systems « Exports significant quantities to Australia, North America and the Pacific Is
Slide 13: Long Steel Products - Key Facts
13 Long Steel Products ~ Key Facts Monufacturing « 500 staff w Markets:- Sates Office 60% New Zealand 40% Export Major Customers. » Australia " Pacific Islands » North America « Sole New Zealand manufacturer of long steel products « Strong brands nope 9 y wen C Ne Lo Ly) ye Y y Le as Le Le 7 Lo i no
Slide 14: The Pacific Steel Group Value Chain
14 The Pacific Steel Group Value Chain Other Domestic Custqmers Cyclone Fencing Pacific ein, I ~10k¢ Sims OS Steel ~40kt 50:50 JV (EAF and 2 rolling mills) PS Pacific Wire | Mesh a) Exports cate Fletcher {ferrous & non-ferrous) Exports ~35kt Reinforcing Market Positions: 90% NZ scrap 80% NZ rebar 10
Slide 15: Long Steel Products - Growth
15 Long Steel Products - Growth # 160,000 to 250,000 toa achieved through productivity from 2001 to 2006 « Transformer and shell investment will lift capacity to 300,000 tpa # QT investment to reduce additive costs in steel making ® Australian market growth » New wire products 9 Zinc aluminium coati
Slide 16: Transformer Update
16 Transformer Update » Failure of EAF transformer in October « Temporary replacement transformer on site and operational November » New transformer ready to ship in December » Steel Mill closed for 6 weeks « Rolling Mill operations continued » Little or no disruption to domestic customer base « Som
Slide 17: Fletcher Easysteel
Fletcher Easysteel EASY S CREE Leading distrioutor of long and flat carbon steel products 5,000 Stock Items 10,000 Customers 208 Employees 13 Sales Centres 80 Years in Business 2 Processing Centres 2 Distribution Centres T2004 wren " yy LD C TURE reae I nnpnmRIE, 7 Le c i iy Le ee 7 ae i Nev i no) V
Slide 18: EASYSTEEL
EASYSTEEL Ne a SUPPLY OPERATIONAL Ly MARKET | EXCELLENCE DIFFERENTIATION | | Scale - Leverage Health & Safety Brand Reach - Global IFOTIS Levels Service RF Barcoding ‘On Time Every Time’ ‘Lean’ Principles Range Reach Culture —> ‘Best Place To Work’ Finalist 2003 ‘04 '05 ‘06 j 7) c. a ie Ui ding) a »
Slide 19: : . So es oe = oo = SS Oe so _ . :
7 : . So es oe = oo = SS Oe so _ . : : : — - oo oo. -_ oe — | — sss a. —s — | : — —— — Ss oe — : ooo -— Ga —... ss : ss
Fletcher Building — Investor Presentation (November 2006) on 6ix