Fletcher Building Limited · NZX:FBU

Fletcher Building — Investor Presentation (October 2005)

30 slides from Fletcher Building's investor presentation, Oct 7, 2005

1. Slide 1: Slide 1

2. Slide 2: Forward looking statements

   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 materially. Media releases, ma

3. Slide 3: Business Description

   BUSINESS DESCRIPTION

4. Slide 4: To be the World Class supplier of choice

   To be the World Class supplier of choice for builders and DIY project customers.

5. Slide 5: Key facts: staff, revenue, EBIT, funds employed

   * Number of Outlets - 55 * Number of Staff - 2825 * 2005 Revenue - $920M | ° 2005 EBIT - $81M | * Funds Employed - $120M | *EBIT:Funds Employed - 67.5% :

6. Slide 6: Store locations

   waitaia _ Kerikeri Thangayaraca Auckland Waleay Park, Awok land » duckland Yakuranga, auckland Takanint, Muck land EPtiore/te anu) Riccarton, christchurch

7. Slide 7: 50.1% Fletcher ownership of each store

   * 50.1% Fletcher ownership of each store * Joint Venture Partners responsible for: Customer Relationship Staff Trading Performance Working Capital * Fletchers responsible for: Brand Property Terms of Trade Systems

8. Slide 8: The Market

   THE MARKET UD

9. Slide 9: Market definition and construction spend

   5 ae 45 ] * The market has been Billi: yf | Hers o8 03 defined as those ee categories sold by 24 PlaceMakers 14 * Total permitted construction spend in | 0 New Zealand in 2004 g g 2 z= et 3 3 was $9.98, including 3 5 g " gf 68 labour (excludes / 5 ° = =e z non-consented A&A) Ss an 2 a Source: Compan

10. Slide 10: Trading Performance

    TRADING PERFORMANCE

11. Slide 11: PlaceMakers revenue

    $M 1,000.0 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 2002 2003 2005 ae gg

12. Slide 12: PlaceMakers Total EBIT

    $M 90.0 80.0 + 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 PlaceMakers Total EBIT 2003 2004 2005

13. Slide 13: Charge sales and cash sales split

    % Split 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2001 2002 2003 2004 2005 Year m Charge Sales @ Cash Sales

14. Slide 14: Revenue by Category

    Revenue by Category STRUCTURAL TIMBER 7 OTHER MANUFACTURING PLASTERBOARD BATHROOM, KITCHEN & LAUNDRY FIBRE CEMENT CLA\ SHEETS FASTENINGS

15. Slide 15: 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2002 2003 GFOL gJV 2004 2008

    120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2002 2003 GFOL gJV 2004 2008

16. Slide 16: Share of Returns: JV ROE and FDL ROE

    180% 160% 140% 120% 100% 80% 60% 40% 20% 0% Share of Returns @ JVROE @ FDL ROE

17. Slide 17: NZ - New Dwelling Consents

    35000 NZ - New Dwelling Consents 30000 25000 20000 15000 2001A 2002A 2004A 2005A 2007F Source: Infometrics

18. Slide 18: Growth

    GROWTH a Z

19. Slide 19: Hoe

    > Hoe cS — 7 Wee Le Sey ee et aun ae ay ae 2 MAME We oe _ 7 oo

20. Slide 20: Riccarton Revenue

    Riccarton Revenue 1 66,000.06 |, 65,000:0 a _ ene Gs @ Oct 03 to Jun 04 @ Oct 04 to Jun 05

21. Slide 21: Slide 21

22. Slide 22: Queenstown Revenue

    Queenstown Revenue 12,000.0 10,000.60 i @ Dec 03 to Jun 04 @ Dec 04 to Jun 05

23. Slide 23: Know how.

    S 3 = S 7) o Know how.

24. Slide 24: . | r—“—C—sCOCi*zC

    . | r—“—C—sCOCi*zC Lo : oe

25. Slide 25: Lynn

    — _ | yy LYNN y CPi

26. Slide 26: Oct to Jun comparison

    Oct 02 to Jun03 mi Oct 03 to Jun 04 O Oct 04 to Jun 05

27. Slide 27: PlaceMakers stores and store upgrades

    Auckland “*~,_ - 2: North wes, - 3: Central / West ~ - 4: South \44), 6: Bay of Plenty Or ; g 7: East Cape 10: Taranaki i a 8: Taupo j 8 9: Hawke’s Bay 10: Manawatu / Ruapehti , 14: Tasman Ss hss 12: Wairarapa **.43: Wellington 16: Westland © PlaceMakers Stores Store Upgrades and New PlaceMakers Fac

28. Slide 28: Customer, e-Business and Logistics Programmes

    * Customer Programme | * e Business Programme * Logistics Programme a * Legacy System and Infrastructure Improvement | Programme

29. Slide 29: Enablers

    ENABLERS Frame & Truss Store Network Developme Systems Development Health & Safety Ranging Cash: DIY Card/Advertising & Promotions Trade: Sales Order Project/LIFT/Advertising & Promotions/Key Accounts New Products SALES Me MARGINS =—__sTerms of Trade COSTS Supply Chain Productivity

30. Slide 30: EBIT:Sales Ratios

    EBIT:Sal les Ratios 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% PlaceMakers Source: Company Reports Bunnings Carters

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