Fletcher Building Limited · NZX:FBU
Fletcher Building — Shareholder Meeting (October 2013)
35 slides from Fletcher Building's shareholder meeting presentation, Oct 16, 2013
Slide 1: Annual Shareholders' Meeting 16 October 2013
For personal use only 16 October 2013
Slide 2: Ralph Waters, Chairman
<< Fletcher Building Ralph Waters Chairman 2 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 3: Directors
Directors Ralph Waters (Chairman) Tony Carter Dr Alan Jackson John Judge Mark Adamson (Managing Director) Kathryn Spargo Cecilia Tarrant Gene Tilbrook 3 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 4: Meeting agenda
Meeting agenda Chairman’s overview 2013 highlights Progress on strategic priorities Board changes Chief Executive Officer's address Trading outlook General business Voting on resolutions 4 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 5: New Zealand residential consents up 22% to June 2013
New Zealand residential consents up 22% to June 2013 Total residential consents; 12-month rolling - New Zealand 19,500 18,500 17,500 16,500 15,500 14,500 13,500 12,500 Mar-TApI-1Ray-in- 134 129 1g.19ep-1Oct-1Rlov-1dec-48N-1Feb-1tar-1APr-1May-14in-13- 13.46 Source: Statistics NZ v 5 Fletcher Building
Slide 6: Australian residential conditions remain subdued
Australian residential conditions remain subdued Total residential consents; 12-month rolling - Australia 170,000 165,000 160,000 155,000 150,000 145,000 140,000 135,000 130,000 125,000 120,000 Mar-18pr-1Ray-in-124 129 ug *9ep-1ct-1Rlov-Ihec-H8N-1Feb-1Star-I6Pr-TRlay-sin-13U 3,4 Source: Australian B
Slide 7: Review of 2013 performance
Review of 2013 performance New Zealand Operating earnings up 38% to $286 million Australia Operating earnings down 22% to $203 million Rest of World Operating earnings down 11% to $80 million 7 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 8: Results for the 2013 financial year
Results for the 2013 financial year NZ$m Sales EBIT" Net earnings’ Significant items after tax Net earnings 1. Before significant items June 2013 12 months 8,517 569 8 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 9: Progress on strategic priorities
Progress on strategic priorities FBUnite: Improving earnings through Greater efficiencies Organic growth opportunities 9 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 10: Delivering on our commitment to Canterbury
Delivering on our commitment to Canterbury 406-—FletcherBuilding Annual. Shareholders Meeting SOcrober 2013: AN BY
Slide 11: Canterbury repairs and rebuild
Canterbury repairs and rebuild Halfway mark in the repair of 80,000 permanent homes reached in June 2013 Deadline for completion December 2014 11 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 12: Total shareholder return 51% for year to June 2013
Total shareholder return - 51% for year to 30 June 2013 Total Shareholder Return (TSR) Percentage 12 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 13: Dividends per share
Full-year dividend 17 cents per share final dividend 34 cents per share for full year Earnings pay-out ratio of 71% Dividend expected to rise as earnings grow 13 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 14: Maintaining a strong balance sheet
Maintaining a strong balance sheet Net Debt/Net Debt Plus Equity Percentage Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Vv 14 Fletcher Building Annual Shareholders’ Meeting | © October 2013 < |
Slide 15: Board changes
Board changes Chairman Ralph Waters to retire in 2014 New director to be appointed within the next few months New Chairman will be selected by the board in 2014 15 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 16: For personal use only
For personal use only
Slide 17: Mark Adamson, Chief Executive Officer
<< Fletcher Building Mark Adamson Chief Executive Officer 17 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 18: FBUnite: Transforming how Fletcher Building operates
FBUnite Transforming how Fletcher Building operates Reducing operating cost base through centralisation of common functions Developing future strategies and platforms for growth Multi-year programme Expecting pre-tax benefits of $75 million to $100 million per annum Benefits should become evident fr
Slide 19: FBUnite 2013 achievements
FBUnite 2013 achievements Establishment of the shared services centre in Auckland Formation of a centralised property management team Centralised procurement function established Assessment of group IT and digital assets completed Rollout of manufacturing excellence model 19 Fletcher Building Annual
Slide 20: Strategy review
Strategy review Revenues = Focus on core markets in New Zealand and Australia = Selected investment in our global Formica business = Large-scale acquisitions not a priority = Immediate focus is to improve returns from current mix of businesses @ New Zealand Australia Rest of World Vv 20 Fletcher Bui
Slide 21: Simplifying the business
Simplifying the business Changes made to simplify our divisional structure e @a siz “oecce” fh SET eatin amin 21 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 22: Management changes
Management changes Nick Olson Tim Hickey Charles Bolt Carl Powell Qf Financial Officer Chief Executive Company Secretary Chief Information l l Distribution Australia and General Counsel Officer Fletcher Building Annual Shareholders’ Meeting |© October 2013
Slide 23: Tradelink
Tradelink Plans in place to improve earnings through winning back customers and building market share 23 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 24: Housing affordability
Housing affordability Opportunities in the Auckland housing market include higher-density housing developments Saltus apartment complex at Stonefields Vv 24 Fletcher Building Annual Shareholders’ Meeting | © October 2013 <
Slide 25: For personal use only
For personal use only
Slide 26: Cashflow from operations up 25%
Cashflow from operations up 25% NZ$m 448 402 2011 2012 559 2013 26 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 27: Capital expenditure in FY14 expected at $250m to $300m
Capital expenditure in FY14 expected to be in the range of $250m to $300m 353 FY2011 FY2012 FY2013 Capital Expenditure Depreciation © Growth ™® Stay in business Vv 27 Fletcher Building Annual Shareholders’ Meeting | © October 2013 <
Slide 28: Health and safety continued improvement
Health and safety continued improvement Total recordable injury frequency rate (TRIFR) 70.00 60.00 50.00 40.00 30.00 20.00 10.00 a CJ = LJ 2006 2007 2008 2009 2010 2011 2012 =. 2013 Vv 28 Fletcher Building Annual Shareholders’ Meeting | © October 2013 < |
Slide 29: For personal use only
For personal use only
Slide 30: Ralph Waters, Chairman
<< Fletcher Building Ralph Waters Chairman 30 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 31: Outlook: New Zealand
Outlook New Zealand Increase in construction activity expected across most sectors Strong increase in housing consents expected to underpin activity levels in the first half Canterbury rebuild will continue to boost activity Steady improvement in commercial building expected Civil infrastructure to
Slide 32: Outlook: Australia
Outlook Australia Conditions expected to remain flat Activity levels in New South Wales appear to be improving, but Victoria remains subdued Confident that change in government and policy reform will lead to a more positive business environment over time Declining investment in mining and resources
Slide 33: Outlook: Rest of World
Outlook Rest of World North America: Increases in new housing construction will benefit Formica Commercial market remains flat Europe: Remains difficult, particularly Spain Break even target Asia: Growth expected in South East Asia Northern Asia and China may be more subdued 33 Fletcher Building Ann
Slide 34: Financial outlook FY2014
Financial outlook FY2014 Operating earnings expected to be between $610 million to $650 million Further appreciation in the New Zealand/Australian dollar exchange rate could impact earnings 34 Fletcher Building Annual Shareholders’ Meeting | © October 2013
Slide 35: For personal use only
For personal use only 16 October 2013
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