Slide 1: Analyst Presentation – Steel Division
For personal use only Analyst Presentation Paul Zuckerman, Chief Executive, Fletcher Building Steel Division Steel Division – March 2008 1
Slide 2: Disclaimer
Disclaimer For personal use only 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 diff
Slide 3: Fletcher Steel – A history of growth
Fletcher Steel – A history of growth 1 For personal use only Steel Division Steel Division EBIT ($m) Revenue ($m) 100 88 92 1 90 1400 80 1161 80 1200 1082 70 1000 60 54 761 47 800 50 611 492 40 600 30 400 20 200 10 0 0 F04 F05 F06 F07 H1 08 F04 F05 F06 F07 H1 08 Revenue H1 Revenue H2 EBIT H1 EBIT H2
Slide 4: The Steel Division's breadth of operations is unique
The Steel Division’s breadth of operations is unique For personal use only Scrap Collecting Rebar Reinforcing Painted Coil End Use, Coating on Armco Safety Tower Merchant Te Apiti Wind Plate Cutting Wire Mesh Coil Kauri Cliffs Railing at Wednesday Steel Farm, Tararua Peak Long Steel Coated Steel Ste
Slide 5: The Australasian steel industry structure is improving
The Australasian steel industry structure is improving For personal use only Long Steel Coated Steel Steel Distribution Australia OneSteel Smorgon merger BlueScope Steel OneSteel, BlueScope BestBar/Tata - reinforcing Lysaght, Stramit, Metroll, Southern Steel, CMC ATM, Orrcon - pipe/tube/rhs Steeline
Slide 6: Long Steel provides 100% recycled product to the market
Long Steel provides 100% recycled product to the market For personal use only Scrap. Benchmark is at Billet Wire Rod Rebar Bright Drawn Reo placing Mesh Sky Tower ~US$480/t cfr Korea Laying Head Wire • 15 year old JV with Sims • Commenced operations in 1962 • Major NZ reinforcing fabricator Group, t
Slide 7: Long Steel Drivers – a mix of global and local influences
Long Steel Drivers – a mix of global and local influences For personal use only NZD:USD FX Rate East Asia Import HMS Scrap ($/t) 100 500 80 400 60 300 40 200 20 100 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Oct 03 Oct 04 Oct 05 Oct 06 Oct 07 Asia Rebar Price (US$/t) NZ Construct
Slide 8: Coated Steel – Premium construction products & services
Coated Steel – Premium construction products & services For personal use only Painted Steel Coil PCC Coil on Kauri Cliffs Westpac Stadium Long Span Commercial Gold Coast Convention Corrugate House Roof Cladding and Roof Roof and Purlins Centre, QLD • Part of Fletchers since 1988 • Part of Fletchers
Slide 9: Coated Steel Drivers – regional construction activity
Coated Steel Drivers – regional construction activity For personal use only Australian Real Non-res. Work Done (A$b p.a.) Australian Residential Approvals (,000 p.a.) 30 225 25 200 20 175 15 150 10 125 5 100 2000 2001 2002 2003 2004 2005 2006 2007 '08F '09F '10F '11F 2000 2001 2002 2003 2004 2005 20
Slide 10: Distribution – servicing our customer's needs
Steel Distribution – servicing our customer’s needs For personal use only Dipping Wire Small Parts Engineering Rounds Pipes into Rural HC Bar Coil Processing Line Wire Staples • Two sites – AKL and CHCH • Leading stockist/distributor of long and flat steel • Fencing products • Biggest zinc bath in N
Slide 11: Division - Opportunities and Issues
Steel Division - Opportunities and Issues For personal use only Opportunities Issues Strong global demand for steel Possibility of global recession – import availability Industry structure – changing in New Zealand & Australia World steel pricing, and timing of any re-adjustment Continued operating
Slide 12: Continues to grow and invest for the future
Steel continues to grow and invest for the future For personal use only Improved geographic coverage, New Plymouth branch. New plate profiling equipment. Acquired Fair Dinkum and Eziform. Aligned into Fletcher Easysteel for Significant investment in regional plants, equipment. customer and logistics
Slide 13: Division - Outlook
Steel Division - Outlook For personal use only Commercial demand Steady Residential demand Regional growth in Australia Small exposure in NZ Volumes Steady Margins Steady Steel Division – March 2008 13
Slide 14: Division - Summary
Steel Division - Summary For personal use only • Fletcher Steel is a NZ$1.2B business • Holds a unique and significant position in the Australasian region • History of growth and performance • We continue to invest in the future • Solid brands with a reputation for service and innovation Steel Divis