Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Day (May 2021)
16 slides from Fletcher Building's investor day presentation, May 26, 2021
Slide 1: Fletcher Building Investor Day May 2021
Fletcher Building Investor Day May 2021 Ross Taylor, CEO 26 May 2021
Slide 2: Agenda
Agenda 1. Introduction, Fletcher Building Overview Ross Taylor 2. Group Financials Bevan McKenzie 3. Safety Wendi Croft 4. Building Products Hamish McBeath 5. Concrete Nick Traber 6. Distribution Bruce McEwen 7. Residential and Development Steve Evans 8. Construction Peter Reidy 9. Australia Dean Fr
Slide 3: Significant NZ and Australia player in building products and distribution
Significant NZ and Australia player, focused in the building products and distribution sectors People: c.14,500 External Revenue: NZD c.$8.0 billion NZX/ASX listed: FBU New Zealand Australia South Pacific c.9,100 people c.4,600 people c.800 people External Revenue FY21F $5.2b $2.8b $0.1b NZ Resident
Slide 4: Leading NZ sector exposures with strong market positions and brands
Leading NZ sector exposures with strong market positions and brands New Zealand Market share Sites Gross Revenue Brands Building Products 32%1 c.65 $1.4b 140 points Distribution 20%1 of presence $1.7b Concrete 38%1 c.100 $0.8b #2 largest Residential & Auckland homebuilder $0.7b Development 800 homes
Slide 5: Australia position smaller but scale in specific sectors
Australia position smaller but scale in specific sectors Australia Market share Sites Gross Revenue Brands Building Products 29%1 74 $2.8b Distribution 19%1 221 5 Fletcher Building Limited Investor Day Presentation | © May 2021 1. Estimates based on the markets in which we participate, e.g. Plumbing
Slide 6: Having reset the business, delivering performance in FY21, strongly positioned for growth
Having reset the business, delivering performance in FY21, we are strongly positioned for ongoing performance and growth FY19 FY20 FY21 FY22 FY23+ Refocus & stabilise Set up for Performance Ongoing performance & growth performance 6 Fletcher Building Limited Investor Day Presentation | © May 2021
Slide 7: Our strategy is aligned to this next phase of ongoing performance & growth
Our strategy is aligned to this next phase of ongoing performance & growth Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic performance Leadership in innovation, Strategic Mar
Slide 8: Focus on achieving our vision, anchored by our purpose and values
Focus on achieving our vision, anchored by our purpose and values Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic performance Leadership in innovation, Strategic Market leadi
Slide 9: Our strategic goals driving us to achieve performance and growth
Our strategic goals driving us to achieve performance and growth Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic performance Leadership in innovation, Strategic Market leadin
Slide 10: Our people are integral to delivery of our strategy
Our people are integral to delivery of our strategy Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic performance Leadership in innovation, Strategic Market leading customer Ze
Slide 11: Key group measures aimed to deliver financial and non-financial performance and growth
Key group measures are aimed to deliver financial and non-financial performance and growth Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic performance Leadership in innovatio
Slide 12: Confident this strategy positions us well to drive shareholder value
Confident this strategy positions us well to drive shareholder value in the short- and long-term 01 02 03 04 05 Focus Strong Significant Global and Well-positioned financial near-term regional for long-term positioning “self-help” macro trends and sustainable value creation are supportive growth opp
Slide 13: NZ markets look favourable and "stronger for longer"
NZ markets look favourable and “stronger for longer” NZ Historical and Forecast NZ Historical and Forecast Residential WPIP ($b) 4.0 GDP • Strong economic backdrop 17.5 17.8 17.7 • Ongoing structural undersupply of housing in 15.6 15.2 2.0 NZ (housing undersupply of 40,000 dwellings) • Growing popul
Slide 14: Australia macro backdrop supportive for growth
Australia macro backdrop supportive for growth AU Historical and Forecast AU Historical and Forecast Residential Work Done (A$b) 8.0 GDP • Strong economic backdrop 80.6 75.3 75.7 76.6 4.0 • Government stimulus driving home building 72.8 0.0 • Low term deposit interest rates and low -4.0 borrowing ra
Slide 15: FY21 Forecast and share buyback
FY21 Forecast and share buyback Strong earnings growth and improved profitability, EBIT at top end of guidance range, on-market share buyback of up to $300m è Solid revenue of approximately $8b, trading conditions in 2H21 broadly consistent with 1H21 è Forward indicators point to ongoing robust volu
Slide 16: Near-term outlook
Near-term outlook Driving growth through operational improvement & growth initiatives, well-positioned through to FY23+ Pathway to c.10% EBIT margin in FY23 Positioned for earnings growth to FY23 and beyond 1. Australia margins lift to 5-7% on continued improvement in è Investing for growth through