Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (November 2006)
19 slides from Fletcher Building's investor presentation, November 2006
Slide 1: Analysts Briefing November 2006
Analysts Briefing November 2006 Rollforming Long Steel Easysteel and Coatings Products Tony Te Au Acting Chief Executive, Steel Ralph Waters Chief Executive Officer
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 company operates. Because these statements are forward looking, Fletcher Building’s actual results could differ materia
Slide 3: Results Record (Restated)
3 Results Record (Restated) June 2005 December 2005 June 2006 (12 months) (6 months) (12 months) $m's Operating Revenue* 733 550 1082 EBIT 82 38 93 Margin 11% 7% 9% Total Funds Employed 428 439 461 EBIT/Funds 22% 17% 20% * excludes inter-company revenue * Proforma returns based on 12 months of Amate
Slide 4: Reporting Structure
4 Reporting Structure Rollforming Long Steel and Easysteel Products Coatings Analysts Briefing – November 2006
Slide 5: Key Strategies: Operational Excellence
5 Key Strategies Be operationally excellent in support of business unit market strategies IFOTIS levels OEE, Utilisation rates Change over times, extend branch capability Lead times In-market, high-service, flexible manufacturing operations Organisation alignment behind BU strategies A
Slide 6: Key Strategies: Internal growth initiatives
6 Key Strategies Internal growth initiatives New products and product enhancement opportunities New branches in targeted areas Expand organisational capability Invest and develop technologies in our existing businesses But likely to be small Analysts Briefing – November 2006
Slide 7: Growth: Organic and External
7 Growth Organic Growth Competent management Focus on performance (KPI’s i.e OEE, IFOTIS) EBIT, Funds, Cash Strong market and market share growth Extend markets External Growth Likely to be Australasian focused Related or complimentary product opportunities Analysts Briefing – Nove
Slide 8: Rollforming - Australia
8 Rollforming - Australia Stramit Building Products is a leading Australian manufacturer of steel building products, including roofing, walls, gutters and fascias, frames and trusses, purlins, flooring and structural formwork, with turnover in excess of A$500m Acquired as part of Amatek acquisit
Slide 9: Rollforming - Australia
9 Rollforming - Australia Service driven – be the easiest supplier to do business with Service optimised through decentralised branch operations Continued investment in branch capability with Speed Deck Ultra mills installed in 2006 at Cairns, Maddington and Adelaide New branch opened in DAR
Slide 10: Australian Market Forecasts
10 Australian Market Forecasts Australia - Residential Work Done $m 35000 30000 25000 20000 $m 15000 10000 5000 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Australia - Non - Residential Work Done $m 25000 20000 15000 $m 10000 5000 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/
Slide 11: Rollforming - New Zealand
11 Rollforming -New Zealand The leading NZ supplier of metal purlins, roofing, cladding and composite flooring systems Drive on innovation - new capability introduced with automated folders installed in Auckland and Christchurch Dimond operates out of 12 regional sales centres There are 4 ma
Slide 12: Coatings - New Zealand
12 Coatings - New Zealand A 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 flexible
Slide 13: Long Steel Products – Key Facts
13 Long Steel Products – Key Facts 500 staff Manufacturing Sales Office Markets:- 60% New Zealand Major Customers 40% Export Australia Pacific Islands North America Sole New Zealand manufacturer of long steel products Strong brands Analysts Briefing – November 2006
Slide 14: The Pacific Steel Group Value Chain
14 The Pacific Steel Group Value Chain Other Domestic Customers Cyclone Fencing Pacific ~10kt Sims Steel ~40kt 50:50 JV (EAF and 2 rolling mills) Pacific W ire Mesh Exports Fletcher (ferrous & non-ferrous) Exports ~35kt Reinforcing Market Positions: 90% NZ scrap 80% NZ rebar 100% NZ Rod 60% - 80% NZ
Slide 15: Long Steel Products - Growth
15 Long Steel Products - Growth 160,000 to 250,000 tpa achieved through productivity from 2001 to 2006 Transformer and shell investment will lift capacity to 300,000 tpa QT investment to reduce additive costs in steel making Australian market growth New wire products o Zinc aluminium coati
Slide 16: Transformer Update
16 Transformer Update Failure of EAF transformer in October Temporary replacement transformer on site and operational November New transformer ready to ship in December Steel Mill closed for 6 weeks Rolling Mill operations continued Little or no disruption to domestic customer base Som
Slide 17: Fletcher Easysteel
17 Fletcher Easysteel Leading distributor of long and flat 15,000 Stock Items carbon steel 10,000 Customers products 208 Employees 13 Sales Centres 80 Years in Business 2 Processing Centres 2 Distribution Centres Analysts Briefing – November 2006
Slide 18: Supply, Operational Excellence, Market Differentiation
18 SUPPLY OPERATIONAL MARKET EXCELLENCE DIFFERENTIATION Scale - Leverage Health & Safety Brand Reach - Global IFOTIS Levels Service RF Barcoding ‘On Time Every Time’ ‘Lean’ Principles Range Reach Culture ‘Best Place To Work’ Finalist 2003 ’04 ’05 ‘06 Analysts Briefing – November 2006
Slide 19: Ralph Waters, Chief Executive Officer
Ralph Waters Chief Executive Officer
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