Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (October 2009)
29 slides from Fletcher Building's investor presentation, Oct 14, 2009
Slide 1: Building Products Investor Presentation
For personal use only Building Products Investor Presentation October 2009 Chris Ellis – Chief Executive Building Products
Slide 2: Cautionary Statement
2 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 For personal use only company operates. Because these statements are forward looking, Fletcher Building’s actual result
Slide 3: Building Products Division
3 Building Products Division “Building Performance and Sustainability” For personal use only Fletcher Building Products Division • Thermal • Acoustic • Warmth and Comfort A group of building products positioned for growth in home performance retrofit and “Green Build” practices Building Analyst Pres
Slide 4: Building Products divisional structure
4 Building Products divisional structure The Building Products Division comprises three clusters: • Plasterboard Group For personal use only • Insulation Group • Roof Tiles Group …and two complementary businesses: • Tasman Sinkware • Fletcher Aluminium Building Products Division Plasterboard Insulat
Slide 5: Plasterboard group
5 Plasterboard group For personal use only • Winstone Wallboards – No. 1 in New Zealand – Sole New Zealand plasterboard manufacturer – Leading market share – Significant proportion of sales from value added performance board Building Analyst Presentation – October 2009
Slide 6: Insulation group
6 Insulation group Insulation Group For personal use only • Fletcher Insulation (Aust) • Forman Group • Home&dry • Tasman Insulation (NZ) • Tasman Access Floors • DVS – No.1 in Australasia – NZ’s No. 1 distributor and • PinkFit installer of commercial – Australia 55% glasswool insulation, ceiling an
Slide 7: Roof Tiles Group
7 Roof Tiles Group For personal use only AHI Roofing Decra Roofing Systems (USA) • World’s largest manufacturer of stone chip coated metal roof tiles • New Zealand 75% share • New Hungarian plant came on stream April 2009 Building Analyst Presentation – October 2009
Slide 8: Complementary businesses
8 Complementary businesses Tasman Sinkware For personal use only • No. 1 in Australian market • Australia’s only world class sink manufacturer • Strong brands in premium and mid-range products Fletcher Aluminium • No. 2 in New Zealand market • Innovative product range Building Analyst Presentation –
Slide 9: Key residential products and brands
9 Key residential products and brands For personal use only Building Analyst Presentation – October 2009
Slide 10: Key commercial products and brands
10 Key commercial products and brands For personal use only Building Analyst Presentation – October 2009
Slide 11: Financial results
11 Financial results For personal use only EBITDA and EBITDA Margin NZ$m FY09 FY08 % 180.0 30% Net Sales 771.0 739.0 4 160.0 25% 140.0 EBITDA (excl unusuals) 131.0 171.0 -23 EBITDA Margin (%) 120.0 20% EBIT (excl unusuals) 106.0 148.0 -28 EBITDA ($m) 100.0 15% Funds Employed 644.0 631.0 2 80.0 60.0
Slide 12: Volumes down but prices improved
12 Volumes down but prices improved For personal use only Gross Sales NZ$m Jun 09 Jun 08 % Volume Price EBITDA New Zealand Plasterboard 202 218 -7 a Insulation 156 158 -1 b Roof Tiles 198 157 26 Aluminium 58 69 -16 Australia Insulation 216 192 13 Sinkware 33 41 -20
Slide 13: Key Strategies
13 Key Strategies Business • Plant closures For personal use only restructuring • Manufacturing plant efficiencies as volumes fall • Logistics review • Lean manufacturing and waste reduction • Shift and overhead reductions Growth in roof • Hungarian roof tile plant commissioned tiles and home • USA
Slide 14: Key Growth Drivers
14 Key Growth Drivers Plasterboard • Product differentiation and innovation For personal use only • Increasing average house size Insulation • Government stimulus packages • Energy efficiency and sustainability • Regulatory changes Roof Tiles • Japan / Europe / Africa penetration • US distribution g
Slide 15: Plasterboard Group
For personal use only Plasterboard Group Winstone Wallboards Building Analyst Presentation – October 2009
Slide 16: Plasterboard: progress
16 Plasterboard: progress • Energy reduction projects For personal use only • Shift reductions • Holding share and margins in weak market • Product innovation Building Analyst Presentation – October 2009
Slide 17: Insulation Group
For personal use only Insulation Group Fletcher Insulation, Tasman Insulation NZ, Baron Insulation, Forman Group, Tasman Access Floors, Home&dry, DVS, PinkFit Building Analyst Presentation – October 2009
Slide 18: Insulation businesses: Progress
Insulation businesses 18 Progress Insulation manufacturing consolidated across Australasia • Auckland manufacturing batts for Australian market For personal use only • Unitising equipment installed in Auckland allowing packaging for Australian markets • Foils and building papers relocated from Duroi
Slide 19: Government Stimulus Packages
Insulation businesses 19 Government Stimulus Packages Australia New Zealand For personal use only Timing Two and a half year programme Four year programme July 2009 – December 2011 October 2009-August 2013 Likely to terminate earlier at May terminate earlier with growth current dramatic uptake rates
Slide 20: Government stimulus packages – uptake
Insulation businesses 20 Government stimulus packages – uptake Dramatic uptake of government stimulus packages, particularly For personal use only in Australia, driving strong sales and high production efficiencies Fletcher Insulation Australian Glasswool Volumes • All four plants at capacity 10,000
Slide 21: Other Insulation group businesses: Progress
Other Insulation group businesses: 21 Progress For personal use only • Home&dry Group established, Group GM appointed • Vision to be New Zealand’s preferred one-stop portal for energy efficient and sustainable home solutions • Partnering with EECA for EnergyWise home insulation retrofit subsidies •
Slide 22: Roof Tiles Group
For personal use only Roof Tiles Group AHI Roofing Decra Roofing Systems Building Analyst Presentation – October 2009
Slide 23: Roof Tiles: Progress
Roof Tiles: 23 Progress For personal use only Várpalota, Hungary • Improved service to European customers plant fully operational • Increased penetration in high margin markets • Supply current EU volumes and provide for growth • Lower EU volumes in spring – have run out old stocks and closed wareho
Slide 24: Key Facts
For personal use only Key Facts Building Analyst Presentation – October 2009
Slide 25: Key Facts: Plasterboard
25 Key Facts: Plasterboard Products For personal use only • Plasterboard • Compounds/Accessories • Systems • Rondo residential products Comments • Sole manufacturer of plasterboard in New Zealand, leading market share • Two manufacturing plants (Auckland and Christchurch) • Distributes through merch
Slide 26: Key Facts: Insulation
26 Key Facts: Insulation • Insulation has superior competitive infrastructure, technology and brands including: For personal use only – Manufacturing facilities: four of the six glasswool plants in Australasia, plus laminated foil plant – An exclusive license agreement with Owens Corning, the world’
Slide 27: Key Facts: Insulation
27 Key Facts: Insulation • Insulation has a strong footprint: – Four of six glasswool plants and a comprehensive For personal use only branch structure GW Plants Annual ( Capacity) Tonnes Auckland 10,000 10% Christchurch 4,000 4% Sydney 12,000 13% Melbourne 30,000 31% CSR 40,000 42% Building Analyst
Slide 28: Key Facts: Roof Tiles
Key Facts: Roof Tiles For personal use only Building Analyst Presentation – October 2009
Slide 29: Key Facts: Roof Tiles
Key Facts: Roof Tiles For personal use only Sales Volumes by Geography Other New Zealand 10% 10% Africa 19% USA 26% Europe 16% Japan 19% Building Analyst Presentation – October 2009
Fletcher Building — Investor Presentation (October 2009) on 6ix