Slide 1: Half Year Results to 31 December 2011
FLETCHER BUILDING For personal use only HALF YEAR RESULTS TO 31 DECEMBER 2011 22 February 2012 Jonathan Ling Chief Executive Officer Bill Roest Chief Financial Officer
Slide 2: Disclaimer
Half Year Results | Fletcher Building | © February 2012 | Page 2 Disclaimer For personal use only This half year results presentation dated 22 February 2012 provides additional comment on the media release of the same date. As such, it should be read in conjunction with, and subject to, the explanat
Slide 3: Agenda
Half Year Results | Fletcher Building | © February 2012 | Page 3 Agenda For personal use only • Results Overview • Divisional Performance • Financial Results • Outlook
Slide 4: Results Overview
Half Year Results | Fletcher Building | © February 2012 Results Overview | Page 4 Half Year Results RESULTS OVERVIEW For personal use only
Slide 5: Results overview
Half Year Results | Fletcher Building | © February 2012 Results Overview | Page 5 Results overview For personal use only Net earnings $144 million Operating earnings of $256 million Unusual items of $15 million after tax Net earnings, before unusual items $159 million Cashflow from operations $129 m
Slide 6: Record lows for new residential consents in New Zealand, and significant residential slowdown in Australia
Half Year Results | Fletcher Building | © February 2012 Results Overview | Page 6 Record lows for new residential consents in New Zealand, and significant residential slowdown in Australia For personal use only Dec 2011 Dec 2010 Dec 2009 11/10 Building Consents 12 months 12 months 12 months %Mvmt Ne
Slide 7: Weak residential construction markets in New Zealand and Australia impacted earnings
Half Year Results | Fletcher Building | © February 2012 Results Overview | Page 7 Weak residential construction markets in New Zealand and Australia impacted earnings For personal use only Dec 2011 Dec 2010 NZ$m 6 months 6 months % Change Sales 4,509 3,468 +30 EBIT 256 285 -10 EBITDA before unusual
Slide 8: Earnings Commentary
Half Year Results | Fletcher Building | © February 2012 Results Overview | Page 8 Earnings Commentary For personal use only • First half performance a creditable outcome given tough trading conditions and low volumes in most markets • Businesses exposed to NZ residential building consents were impac
Slide 9: Divisional Performance
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 9 Half Year Results DIVISIONAL For personal use only PERFORMANCE
Slide 10: Weaker market conditions impacted all divisions
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 10 Weaker market conditions impacted all divisions For personal use only EBIT before unusuals NZ$million1 80 63 60 56 57 53 43 43 33 25 25 24 15 0 Building Crane Distribution Concrete Construction Laminates & Steel
Slide 11: Building Products result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 11 Building Products result For personal use only Dec 11 Dec 10 NZ$m 6 mths 6 mths %∆ Plasterboard earnings lower due to weaker NZ residential market, but Sales 355 371 -4 market share maintained. EBITDA 56 69 -19
Slide 12: Building Products: lower volumes driven by depressed residential activity
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 12 Building Products: lower volumes driven by depressed residential activity in NZ and Australia For personal use only Gross Sales Dec 11 Dec 10 NZ$m 6 mths 6 mths %∆ Volume ∆ Price ∆ EBITDA ∆ New Zealand - Plaster
Slide 13: Concrete result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 13 Concrete result For personal use only Dec 11 Dec 10 NZ Concrete NZ$m 6 mths 6 mths %∆ • Softer demand for aggregates Sales 468 442 +6 and masonry products. • Readymix concrete and EBITDA 91 87 +5 concrete pipe p
Slide 14: Concrete: softer demand in New Zealand, but steady or improved volumes in Australia
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 14 Concrete: softer demand in New Zealand, but steady or improved volumes in Australia For personal use only Gross Sales Dec 11 Dec 10 NZ$m 6 mths 6 mths %∆ Volume ∆ Price ∆ EBITDA ∆ New Zealand 331 326 +2 Cement ↓
Slide 15: Construction result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 15 Construction result For personal use only Dec 11 Dec 10 Several large projects completed NZ$m 6 mths 6 mths %∆ during the period. Sales 520 592 -12 Tighter project margins due to EBITDA 30 38 -21 subdued market.
Slide 16: Canterbury update
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 16 Canterbury update For personal use only Strong progress on repairs − 35,000 emergency repairs completed − 9,200 full scope repairs completed, 30,000 underway or in progress − 1,000 + firms contracted, 11,000 con
Slide 17: Crane result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 17 Crane result For personal use only Dec 11 Dec 10¹ Increased pipeline sales to gas and NZ$m 6 mths 6 mths %∆ mining offset weaker residential EBIT: demand. Pipelines 28 Distribution Distribution volumes down due
Slide 18: Distribution result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 18 Distribution result For personal use only Dec 11 Dec 10 Sales decline of 10% due to NZ$m 6 mths 6 mths %∆ subdued activity levels and continued disruption to Sales 402 446 -10 Christchurch stores – consistent EB
Slide 19: Laminates & Panels result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 19 Laminates & Panels result For personal use only Dec 11 Dec 10 Laminex NZ$m 6 mths 6 mths %∆ • Australian volumes of higher margin decorated board down due to fall in Sales 939 1,001 -6 new housing starts and add
Slide 20: Laminates & Panels: volumes declined in Australia, New Zealand and Europe
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 20 Laminates & Panels: volumes declined in Australia, New Zealand and Europe, with continued growth in Asia and NA For personal use only Gross Sales Dec 11 Dec 10 NZ$m 6 mths 6 mths %∆ Volume ∆ Price ∆ EBITDA ∆ Aus
Slide 21: Formica: continued improvement in earnings
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 21 Formica: continued improvement in earnings due to volume growth in Asia and cost reduction measures For personal use only EBIT NZ$m 1H12 1H11 % Change Asia 18 19 -5 North America 12 11 +9 Europe 2 1 +100 Corpora
Slide 22: Steel result
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 22 Steel result For personal use only Dec 11 Dec 10 Long steel earnings impacted by NZ$m 6 Mths 6 Mths %∆ reduced margins, as a result of global pricing pressures, Sales 596 616 -3 particularly in Australia. EBITDA
Slide 23: Steel: lower volumes and margins in most businesses
Half Year Results | Fletcher Building | © February 2012 Divisional Performance | Page 23 Steel: lower volumes and margins in most businesses For personal use only Gross Sales Dec 11 Dec 10 NZ$m 6 mths 6 mths %∆ Volume ∆ Price ∆ EBITDA ∆ New Zealand - Long Steel 136 124 +10 ↑ ↓ ↓ - Coated Steel 80 89
Slide 24: Financial Results
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 24 Half Year Results FINANCIAL For personal use only RESULTS
Slide 25: Net earnings
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 25 Net earnings For personal use only Dec 2011 Dec 2010 NZ $m 6 months 6 months % Change Divisional EBIT¹ 279 294 -5 - Corporate costs (6) (9) -33 - Asset sales 4 0 - Unusual items (21) 0 Operating Earnings 256 285 -10
Slide 26: Cashflow from operations impacted by working capital movements
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 26 Cashflow from operations impacted by working capital movements, higher funding costs and cash tax payments For personal use only Dec 2011 Dec 2010 6 months 6 months % Change EBITDA 372 381 -2 Funding costs (73) (51)
Slide 27: Increase in net debt due to capital expenditure and working capital requirements
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 27 Increase in net debt due to capital expenditure and working capital requirements For personal use only 8 9 2,026 99 101 1,892 53 (7) 103 NZ$ m (232) Dividends Growth Business operations Working Divestments Distributi
Slide 28: Forecast capital expenditure includes $100m in acquisitions
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 28 Forecast capital expenditure includes $100m in acquisitions For personal use only 397 * Acquisitions Dec 11 Dec 10 FY12 Growth 6 mths 6 mths %∆ Forecast 100 Stay in business 307 ¹ 289 Stay-in-business 101 74 +36 227
Slide 29: Key Ratios
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 29 Key Ratios For personal use only Total Shareholder Return (TSR) Debt/Debt Plus Equity Percentage Percentage 42 40 24 35 34 14 14 31 27 22 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Dec-11 -26 Jun-07 Jun-08 Jun-09 Jun-10 Jun-
Slide 30: Debt maturity profile
Half Year Results | Fletcher Building | © February 2012 Financial Results | Page 30 Debt maturity profile For personal use only Funding and Maturity Profile US$300m private placement to US December 2011 – Post US Private Placement investors completed post 31 December 2011. 200 247 12 110 Key credit
Slide 31: Outlook
Half Year Results | Fletcher Building | © February 2012 Outlook | Page 31 Half Year Results OUTLOOK For personal use only
Slide 32: Outlook FY2012
Half Year Results | Fletcher Building | © February 2012 Outlook | Page 32 Outlook FY2012 For personal use only New Zealand − Conditions expected to remain challenging − Modest uplift in housing consents in first half should lift activity in second half, but from low base − Infrastructure spending lo
Slide 33: Financial outlook FY2012
Half Year Results | Fletcher Building | © February 2012 Outlook | Page 33 Financial outlook FY2012 For personal use only Based on: Current assessment of market conditions Unaudited half year results Net earnings before unusuals for the 2012 financial year are expected to be in the range of $310 mill
Slide 34: Half Year Results to 31 December 2011
Half Year Results | Fletcher Building | © February 2012 Outlook | Page 34 FLETCHER BUILDING For personal use only HALF YEAR RESULTS TO 31 DECEMBER 2011 22 February 2012 Jonathan Ling Chief Executive Officer Bill Roest Chief Financial Officer