Slide 1: Analysts Briefing
Analysts Briefing October 2005 Andrew Reding Chief Executive, Building Products Fletcherbuilding
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
Results Record June* June* June* June June 2001 2002 2003 2004 2005 $m's Pro-forma Operating Revenue** 642 619 638 927 1338 EBIT 50 77 102 164 222 Margin 8% 12% 16% 18% 17% Total Funds Employed 333 322 296 560 878 EBIT/Funds 15% 24% 34% 29% 27% *** * restated to transfer FWP & SPH to Laminates and P
Slide 4: Revenue
Revenue eae (7 ay hile LG 2002 2003 2004 2005 m External G Internal BE SLO TE TEE i ay iy LEN AO We Be Wie, WNL Hes HE Wee Wd iy a yy Ly Vy CD yy WE fo 7 ELM ay Wes j is iy) a) Y Le sriefing ~ Octobe a Gs oo a ey a _ “ Flet _ a i) i y a Lo 7 yy Lo LF ee LA i Bei i pe i / Flet ea P Wy We Mie 7 WD aly
Slide 5: Revenue and EBIT by segment
005 segment REVENUE (Pro-forma) venue And EBIT EBITDA (Pro-forma) Plasterboard and Insulation 24% Long Steel and others 30% 46% Long Steel and others 29% Plasterboard and Insulation 45% Roofing 26% pe oO y Uy ay Mey Wy y a iy WY Ly Wy Ga gs Do iy . UA, We Me Lp Wie yy Vay, yy ‘gs Wi a Ly UY Vy, We V
Slide 6: Reduced Exposure To NZ Residential Cycle
Reduced Exposure To NZ Residential Cycle EBIT 2001 i 85% w NZ Residential mg NZ Non Residential/Export EBIT 2005 40% @ NZ Residential ml NZ Non Residential/Export O Other (Australia/US etc) Ly Y Ly | a ay Bi ay Lee ay Vig Us i bi EN: LLL —— Hee ae ee i a a Ce - i We yy a HG ees Ae Wa Le Ciena a Ly H
Slide 7: Growth In The Underlying Businesses
Growth In The Underlying Businesses EBIT 2001 EBIT 2005 64 mmm AlN 158 m Underlying Businesses @ Underlying Businesses g Acquistion yy ey Lo 7 We, yy y 7 Wy i Ce ee ee ee ee LL LATE Lay Lo LLL LLL LLL LS LL yy Wi hy Ly iy, ii i. fe iy Vy i 7 a yy EOL GE oy Ve, Mey Wy yy WY is iy Tigi LLL LMMAL ELL L
Slide 8: Growth
Growth Q Organic growth Competent management Focus on performance (kpI's i.e OEE, IFOTIS) EBIT, Funds, Cash Strong market and market share growth i yy 7 Do a LLL LL LLG 7 ys Ly Uy Ve y ) Le We , Lay, Ga EE ea a ee a aie ana eae j a os i Ly We MI We iis WUE is ay gs My He a His hag be Ce i NA yi yy i
Slide 9: Growth: Major Acquisitions
Growth Q Major Acquisitions = Tasman Building Products (Oct 03) » Amatek (Mar 05) » Stramit (steel roofing and purlins) = Insulation Solutions (glasswool and foil insulation) iy yy yy is ; i ae Ti Le Wh, i VAG MSA ig i NE, UAE iy gi NIT SAEs ee 7 Ge ye Be Z Vy vy) ie ye a Va 7 i iy iy Wa) La ys EG f
Slide 10: Building Products Group - Management Structure
10 Building Products Group- Management Structure O) Was Winstone Fletcher Easysteel Dimond Pacific Wallboards Aluminium Coilcoaters Pacific Pacific Fletcher CSP Sims Steel Wire Reinforcing Galvanising JV yan HEE pee LL LAL yyy Ay Vy He ee ey VAG Gi Be ys 7 Le, 7 Ge ey 7 Ye yy yy yy 7 NN a a LN — y Y
Slide 11: Building Products Group Now
Building Products Grou 8 Now Plasterboard Insulation Rollforming We Metal Roof Tiles Other businesses Long Steel Products QO) Combination of acquisitions and organic = Created Insulation, Rollforming and Metal Roof Tiles = Long Steel formed as a value chain wm yi yy Vy La i a, a Wi i hy nalysts Br j
Slide 12: 2005 Performance 1st Half vs 2nd
12 2005 Performance 1° Half vs 2"4 a Ww a 1 ~ Ko ic 2 - 2 Lis 0 Ly i Vy j VMI LG ee Ly Le, Va ae eg us aa i). rrr eo o Me Gq age Wie Ty _ i LL y iB yy is Wy My He te ee y yy in ie Nie Yi, Ly Wo Dy yy Ly GC ~~) a , yy a 7 i 7 oe Me — Le a Hace a ea a ere Mie a ea Hy as cis LD on ea aetna i LLL ye Ce
Slide 13: 2005 Earnings Brokers range
2004 -2006 250 222 226 2005 Brokers range $216m to $245m 150 100 - Consensus $226m 50 Earnings $ millions NE DU ELENA HEMEL UALS EAN AMEE DURUM EEUU AT LLIN yy YY AI A LEE yi y 7 yy 7 iy Wy 7 Ly a Wy WY i iy Wy He Ly, Lg yy H WY Et, Ley ae ieee Ys Ay We Ye Ly uy iy |. i ie Ae Va 7 CL A a FF Ce ae ae
Slide 14: Key Issues Going Forward
14 Key Issues Going Forward OQ} Sustainable growth in earnings — long term QO) Issue of = Geographies = Activities QO) Generally = Broad activities in New Zealand and Australia =» Narrow “Product Champions” outside Australasia - e.g. Metal Roof Tiles y y Le Lj wy yy, ge Ys a We ae a a yy Le _ V7 VEG
Slide 15: Key Strategies
15 Key Strategies () Be operationally excellent in support of business unit market strategies IFOTIS levels OEE, Utilisation rates Change over times Lead times In market, high-service, flexible manufacturing operations Organisation alignment behind BU strategies i) NE op CONTE VOCUS NOEL vonieey TE
Slide 16: Key Strategies: Acquire complementary operations
Key Strategies Q) Acquire operations whose product ranges and activities complement those already offered Tasman Building Products Amatek Insulation | Insulation AHL : T a | Stramit | Insulation _NZ__| Australia] Roofing | Roofing |__| Solutions | Infill opportunity Industry rationalisation Technolo
Slide 17: Key Strategies: Offshore potential of product champions
Key Strategies Q} Realise offshore potential of product champions Metal Roof Tiles « Value proposition defined by market « Lightweight « Re-roof costs, construction flexibility, faster to install Strength « earthquake, hail Product performance « Fade resistance, weather tightness Aesthetics Colour,
Slide 18: Product Champions
Product Champions New Zealand Japan Housing 18 ¢ Huge untapped market — tile penetration rate in NZ approx. 25% of new residential ¢ Japan/USA/Europe < 5% Ly iy 7 peau yy, yy Ly iy as a Uys wy, Hpi ES UO Ly a Aa De | Ly, ae yopauona VD VE iy Hy) La Li ae a 7 oan. Lay Lg Vi Lie i QZ ae ae. i , iia ee
Slide 19: Product Champion: Fiberock
19 Product Champion O) Fiberock « Paperless wood fibre reinforced Gypsum board = 50/50 JV with USG called Powerscape established to commercialise this technology in Asia, Australia and New Zealand = Seed market to test whether will support a plant build Hy ey LOS: Ay y UN a i Mat Ly MAES i LE FIESTA
Slide 20: Key Strategies: Invest in technologies
Key Strategies Q} Invest and develop in technologies in our existing businesses so that we can exploit technology or associated products internationally = Scale - likely to be small « Harnessing business innovation CO) Some examples Galvanising technology Fluxcell units Nickel Heat exchange Acid rec
Slide 21: New Technologies: EMW
21 New Technologies O EMW « Electro Magnetic Wiping is a process of controlling the zinc coat weight on wire The characteristics of EMW has lead to savings of up to a H | 25% in zinc usage Sales to USA, Korea and Japan (10 units so far) SESE EE EISELE AUER RIALS ELIAS MUSSEL 7 HLTH We yy yy hsp j Wi
Slide 22: Winstone Wallboards Ltd
22 Plaster! Winstone Wallboards Ltd a « New Zealand’s sole manufacturer of Plasterboard with 95% market share. Two manufacturing plants (Auckland and Christchurch) « Highest annual volume of board and plaster ever manufactured or sold in NZ driven by very high building activity « Expanding our custo
Slide 23: Insulation
23 nsulation QO) Tasman Insulation Australia (Insulco) OY Insulation Solutions OY Tasman Insulation New Zealand From zero to 67-70% of Australasian market in 3 years Glasswool plants in Sydney, Melbourne, Auckland and Christchurch Foil plants in Sydney (2) and Auckland Polyester plant in Sydney ay f
Slide 24: The Growth in Insulation in Australia
The Growth Australia 2001 — Market size A$370m 24 f Insulation In 2005 — Market size A$445m Other, 52 Cellulose, 45 Glasswool, 149 Polyester, 49 Rockwool, 13 Foil, 62 Other, 65 Cellulose, 38 Glasswool, 185 Polyester, 54 Rockwool, 29 Foil, 74 Source: Management estimates WEY, Wey Yay yep Lge iy in My
Slide 25: Insulation
25 NSULATION — SOLUTIONS” ey @ Insulation M#sulco Australia Hew eles faut lating * The purchase of Insulation Solutions, has consolidated the Australian glasswool market from 3 to 2 players * Merger of the two Australian businesses will realise significant synergies * Only Australian company to manu
Slide 26: Insulation Sales Volumes - Australasia
26 nsulation Sales Volumes - ustralasia Glasswool Sales Volumes (indexed to 2001) 2001 2002 2003 2004 2005 Note: Tasman Insulation (Australia and NZ) was acquired October 03 and Insulation Solutions was acquired March 05 yy y EY) Le My Vy LL LLM Ty yo Vi Wg yy iy, ii i YON Me i LUNA Ag WW Wigs Ui Ly
Slide 27: Rollforming and Steel Painting
27 Rollforming and Steel Painting Q Stramit Building Products OY Dimond QO) Pacific Coilcoaters « Largest Australasian Rollformer, second largest coil painting operation yy TOT UE: We wos aaa aaa mnnenmnuanummmmmmue De: wy _ Yo yy yy We age Vy Ls We WEE Ln Ly Nae i y aay £££ yy Ye MMMM EAE EEE iy yy
Slide 28: Australia Stramit
28 ustralia stramnw * Acquired as part of Amatek acquisition in March 05 * Stramit Building Products is a leading Australian manufacturer of steel building products, including roofing, walling, gutters and fascias, frames and trusses, purlins, flooring and structural formwork, with turnover in exces
Slide 29: New Zealand Dimond
New Zealand Dimend * The leading NZ supplier of metal purlins, roofing, cladding and composite flooring systems with 12 sales centres throughout NZ * Optimised matrix business structure around Regional Supply and Functional Excellence to better meet Customers needs. Big drive on product system innov
Slide 30: New Zealand Pacific Coilcoaters
30 New Zealand PACIFIC COILCOATERS « Leading New Zealand 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 Islands « Focused on fl
Slide 31: Metal Roof Tiles
31 ‘A FLETCHER BUILDING COMPANY letal Roof Tiles DWEIitriitd é * Largest manufacturer of steel roof tiles world wide, with plants in Auckland, Malaysia and California, licensees in Europe, Chile and Indonesia and sales offices in Europe, Japan, China and the Middle East * Capacity expansions at all
Slide 32: Global Operations
32 Global Operations AHI ROOFING A PTC Hag EG carat Den Oa ay e if 4 ee a / ao So ee oan ee y yj ee : a . : a a Wee WOE Wy ts Hh Sea iy BMY He 7 ae Hy ay ie a ‘iid fe EEE THe He y yo Co yy teats te ae VME a a Ta Daca neem adcaae wy Va ie amelie Ly Uo We Cour WE ee er a ee
Slide 33: The Pacific Steel Group value chain
33 The Pacific Steel Group value chain Other Domestic Customers ; ay Pacific ~A0kt Sims << Steel 75 Pacific 50:50 JV (EAF and 2 rolling Wire 260kt mills) scrap y Mesh Exports Exports ~50kt Fletcher (ferrous & non-ferrous) Reinforcing pete, Market Positions: 90% NZ scrap 80% NZ rebar CSP Galvanizing
Slide 34: Pacific Steel Group: Pricing Rebar vs scrap
34 Pacific Steel Group Pricing Rebar vs scrap © = QoQ OQ Oo 0 SF we ys oe ROS SF we ye yy of Ro é SR yy & — Rebar Price$NZ International Rebar Price$NZ —— Scrap Prices $NZ Critical —- maintaining spread a 2 7 j 7 7 , ee Ue, ey we a ay iy A Ua MAE Tig a Ly, yy ) a i Ve Lo ip! oo vi ‘ BG Brie ges fa,
Slide 35: Pacific Steel Group: Innovation
Pacific Steel Group Innovation *Electro-Magnetic wiping *Zinc Aluminium wire *Coloured wire *Reid Bar *Galvanised Rebar *Bar marking Ls ye Le He Gee Ly iy) 7 Ly yy, Yi Be, Yi yay y yy a Cy es Le ty Wis Wi Panacea 7 a i, LM Go 472 PE al - HU a ae LLL LL AEE LES He ay -) hh Lo a cS Le ee LL yy HE Ce a
Slide 36: Other Building Products Businesses
36 Other Building Products Businesses QO) Easysteel () Fletcher Aluminium OY Tasman Sinkware () Tasman Access Floors 7 La yy Wey yy, y We Vi Wey @ 7 y Ws Le iy Ly Mi Vy i y, SMM MAE VM Lo yy WM LLL es fang 7 7 y WW, May i Ge LL LLM Le Lye yy GY Py : Vy Le Wl ES ed. 7 ] y 7 I Ve ‘e Gad } lo) gd ye ee
Slide 37: Other Businesses: Easysteel
37 ther Businesses —— Easysteel is a leading stockist and distributor of long and flat sheet products across 13 nationwide locations, servicing 10,000 customers across the whole NZ economy Revenue up 18% on last year, earnings up 46%, which was up 16% and 46% respectively the previous year before th
Slide 38: Other Businesses: Fletcher Aluminium
Pal FLEET 38 CHER Other Businesses ALUM INIUM * Designer and manufacturer of premium architectural window and door systems and other aluminium products to both domestic and international customers. * Franchisee distribution network. Single site extrusion and finishing facilities * Launched a number
Slide 39: Other Businesses: Tasman Sinkware
Other Businesses | Rg TASMAN _@ ° Leading manufacturer of stainless Sink sales Volumes (indexed to 2001) steel sinkware in Australia. « Modern manufacturing facility in Adelaide, South Australia ae « Record exports in 2005, particularly to the USA. « Anumber of new designs are under development in 2
Slide 40: Other Businesses: Tasman Access Floors
40 TASMAN. Other Businesses ACESS HOOKS * Tasman Access Floors Pty Limited is recognised as Australia’s market leader of raised access floors; with over 20 years of experience in design, manufacture, supply and installation of access floor systems « The sole manufacturer of raised access floors in A
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