Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (November 2006)
28 slides from Fletcher Building's investor presentation, Nov 30, 2006
Slide 1: Analysts Presentation
ANALYSTS PRESENTATION PERTH, WESTERN AUSTRALIA THE lamine@x Group 29" November - 1t December 2006
Slide 2: Cautionary Statement
Cautionary Statement This confidential 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 statemenis are forward looking, Fletcher Building’s actual results could dif
Slide 3: The Laminex Group
THE laminex Group The Laminex Group was formed in 2002 after the acquisition and integration of Formica Australia (September 1999) and Wesfi Limited (February 2001) with Laminex Industries. The Laminex Group was acquired by Fletcher Building Limited in November 2002 and subsequently integrated with
Slide 4: Leading Brands
laminex croup LEADING BRANDS | Laminex Inspire your space = Wortd’s favourite laminate OBRIEN GROUP
Slide 5: Leading Products
Slide 6: Ty ii = a
Ty ii = a
Slide 7: Leading Market Positions
THE laminex Group LEADING MARKET POSITIONS Market Shares Year to June 2006 Aus NZ High Pressure Laminate 65% 63% Decorated MDF 53% 45% Decorated Particleboard 43% 69% Raw MDF 31% 34% Raw Particleboard 29% 56% Source : Management Estimates
Slide 8: Vertical Integration
VERTICAL INTEGRATION Forest Waste and Sawmill Waste Thinnings Board Plant I Low Pressure Laminate Plant Componentry High Pressure Business Sales & Distribution Centre Laminate Plant (Metro) | Branch (Regional) I Customer
Slide 9: crea TE
crea TE a, oo IER Liat oe Particleboard Plant : Dynea Resin Plant JV aa Wespine Sawmill JV
Slide 10: e la
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Slide 11: e ye Es TT
e ye Es TT i ee ee 7 ay Os ee a . Cl ie ie ys ee Les | Le a cnt Li. 2 a | _. ee | y i oo | . Ct ee a l . A y Le
Slide 12: Major Locations
minex croup MAJOR LOCATIONS @ Major Sales & Distribution Sites e@ Major Manufacturing Facilities
Slide 13: Customer Size Review
Customer Size Review # of Customers Active Customers (Aust + NZ) grouped by annualised Sales Range Annualised Sales Range Includes Cullity Timbers customers (not previously reported)
Slide 14: Revenue Growth 00/01 – 05/06
oa faa RO} & Revenue Growth 00/01 — 05/06 SNZm Acquisition inclusion of a oenen's FWP & SPH ul 1200 5 Acauisiti into TLG cquisition of from 4/7/03 Wesfi Feb 2001 1000 5 Note 1 800 + 600 4 400 7 200 7 0 r 00/01 01/02 02/03 03/04 04/05 05/06 Note 1: Underlying sales in $A were 5.5% above 01/02 but app
Slide 15: crea TE
crea TE SG 160 150 4 140 + y 130 4 120 4 110 4 100 4 Bs ue Ue 60 4 ee j ae ey, ay y 504 : : ] 1 VE Vy a 10 4 | | Lo | Ly ies GAS 10 4 y ee Zi y i 00/01 01/02 02/03 03/04 04/05 05/06 Pre Acquisition @ Post FWP/SPH Integration
Slide 16: Revenue by Segment 2005/06
THE laminex Group Revenue by Segment 2005/06 04/05 05/06 Export . Export 9% Renovations 10% Renovations 26% 26% Commercial | Commercial 34% 33% New Homes New Homes 31% 31% Source : Management Estimates
Slide 17: Revenue by Product 2005/06
laminex croup Revenue by Product 2005/06 04/05 Export pL 9% HPL LPL Decorative 28% White/Raw 30% 05/06 Ny qe LPL Decorative 26% White/Raw 29%
Slide 18: Revenue by Major Region 2005/06
~ a RO} & Revenue by Major Region 2005/06 04/05 Export New Zealand 22% SA 6% NSW/ACT 16% WA 14% VICITAS QLD/NT 18% 15% 05/06 Export 10% New Zealand 21% NSW/ACT 15% WA 15% VIC/TAS QLD/NT 18% 15%
Slide 19: Board Plant Performance 05/06
Board Plant Performance (m* per annum) - 05/06 600,000 500,000 400,000 @ 2004/05 B@ 2005/06 300,000 200,000 100,000 Particleboard MDF
Slide 20: Customer Delivery Performance (DIFOT)
THE laminex Group Customer Delivery Performance (DIFOT) 100 + 2002/03 2003/04 2004/05 2005/06
Slide 21: Growth: Particleboard Capacity Expansion
GROWTH PARTICLEBOARD CAPACITY EXPANSION Dardanup 50,000m* (15% increase in total capacity) $30m total capex Stage 1 ($18m) due for completion December 2006 Improve environmental performance Increase use of recycled fibre Kumeu 13,000m? (14% increase in total capacity) $3m total Capex completed in Ma
Slide 22: Growth: Product Development
laminex croup GROWTH PRODUCT DEVELOPMENT . 18 products in 18 months . Greenfirst product range . Formica Flooring ° Engineered Stone ‘ Wet area panelling
Slide 23: Growth: Kitchen Components
THE laminex Group GROWTH KITCHEN COMPONENTS . Ballarat door plant re-engineered to carcasses, doors, panels (kitchen components) . Manufacture and sales of complete kitchens to multi-unit developers (taking away from Asian imports) e Taken our rights to 20/20 Design package for Australia . Successfu
Slide 24: Growth: Going Forward
GROWTH GOING FORWARD ° Starting to supply flatpack kitchens to big box retailers in Australia ° Starting to supply finished kitchens to whitegood retailers . Capital spend on a new state of the art decorated door facility ° Developing finished benchtop business in Australia
Slide 25: Asia and Productivity Improvement
a ASIA * Develop sourcing capability in Asia — HPL 50 colours 375 ~ Decorated Board PRODUCTIVITY IMPROVEMENT « WA Sales and Distribution Integration * Paper treating for LPM in NZ * Restructure laminating of decorated board to service local needs * Recycled wood « Renewable energy generation
Slide 26: Growth - GREEN
laminex croup GROWTH - GREEN. ° GREEN, is a range of environmentally preferable products developed to meet the growing demand for environmentally sustainable solutions from the property industry Products are certified by third party eco-labelling programs covering Australia, New Zealand, Korea and C
Slide 27: Outlook
laminex croup OUTLOOK 1. Consistent earnings growth in softening market 2. Resilience has improved through diversification of - market segment - geographic segment - product segment
Slide 28: Taupo
THE laminex Group TAUPO . Fire on 11/9/06 completely destroyed MDF press ° Insurance policy covers new for old replacement and business interruption . Total MDF production capacity of 164,000m° per annum . Export ceased on day after fire . Any export stock at warehouse redirected to domestic custome
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