Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (June 2004)
27 slides from Fletcher Building's investor presentation, June 2004
Slide 1: Andrew Reding, Chief Executive – Building Products Group
Andrew Reding Chief Executive – Building Products Group
Slide 2: Results Record
Jun 2004 Results Record 2001** 2002 2003 ½ 2004 EBIT NZ$m* 94 205 331 217 ROE 16.9% 23.0% 23.6% ROFE 23.1% 24.4% 23.9% TSR 24% 43% 20% (for 6 mths) * Pre unusuals ** Proforma for 12 months 2
Slide 3: Latest Result
Jun 2004 Latest Result Jun Jun Jun Dec Consensus 2001 2002 2003 2003 FY04 NZ$m Pro-Forma 12 Mths 12 Mths 6 Mths 12 Mths* Building Products 50 77 102 74 154 Distribution 18 34 59 36 71 Concrete 40 60 81 42 85 Construction 5 30 34 20 38 Laminates & Panels 8 8 54 48 96 Corporate/Unallocated -15 -4 1 -4
Slide 4: Building Products
Jun 2004 Building Products Plasterboard – No. 1 Aluminium - No.2 in NZ Insulation - No.1 in Australasia No.2 in Australasia No.1 in Australasia 4
Slide 5: Building Products – Steel
Jun 2004 Building Products – Steel Scrap - 50% of Sims Pacific Metals 250KT + EAF Steel Mill Rod, Bar & Wire manufacturing and placement 5
Slide 6: Building Products – Steel
Jun 2004 Building Products – Steel General steel distribution Coil coating, long-run and tile roofing Metal Roof tiles No. 1 in world General Galvanising 6
Slide 7: Key Strategies
Jun 2004 Key Strategies Leveraging off Fletcher Building’s NZ position to create value from infill opportunities Leveraging off Fletcher Building’s Australasian positions to rationalise industries Leveraging off Fletcher Building’s NZ position to develop and bring to market new technologies wi
Slide 8: Example - Tasman
Jun 2004 Example - Tasman Insulation Insulation Intech AHI Decra NZ Australia Roofing Roofing Infill opportunities X X Rationalisation X Technology X Product Champions X X 8
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Slide 10: Tasman Insulation Australia Pty Ltd
Tasman Insulation Australia Pty Ltd
Slide 11: Our Vision
Our Vision “To be the preferred supplier of insulation products to the Australian market.”
Slide 12: History
History • 1979 Commenced Glasswool operations • 1989 CHH acquires business • 1991 Foil manufacture commenced • 1993 Polyester business acquired • 1996 Glasswool plant upgrade • 1998 Tasman acquisition • 2003 Fletcher acquisition
Slide 13: Insulco Product Range
Insulco Product Range ¾ Glasswool Fat Batts Acousti-Therm Vapa-Chek
Slide 14: Insulco Product Range
Insulco Product Range ¾ Polyester Batts Partition Blankets Waddings Filter Media
Slide 15: Insulco Product Range
Insulco Product Range ¾ Foil Laminate Products Traditional foils in Light, Medium & Heavy Duty Tuff-Stuff Duroid range
Slide 16: How Are Insulco Insulation Products Made?
How Are Insulco Insulation Products Made?
Slide 17: Glasswool
Glasswool Raw Materials • 65% Recycled Glass (window, bottle) • Silica Sand, Dolomite, Borax Process • Raw materials are mixed and melted to 1500°C to make glass • Molten glass is spun and fiberised • Binder is added to hold fibres together • The product is cured in oven • Product is cut to size and
Slide 18: Foil Laminates
Foil Laminates Raw Materials • Aluminum foil, fibreglass scrim, paper, adhesive • Woven poly mesh (Tuff-Stuff products) Process • Two laminators; waterbased, hot melt • Components are laminated to construct the final product • Rolls are printed and edge trim cut on line • Rolls are cut to size as a
Slide 19: Polyester
Polyester Raw Materials • Polyester fibres (low melt, high melt, conjugate) Process • Fibres are selected for each product are blended • Fibres are “matted” using carding machine or air-lay technology • Low melt fibres bond the product in oven • Final product is cut and packaged
Slide 20: Insulation Market by Product
Insulation Market by Product Polyester Other 15% 2% Glasswool Cellulose 46% 14% Foil 19% Rockwool 4% Market Size $350 million
Slide 21: Insulation Market Shares
Insulation Market Shares Other CSR 16% Bradford Imports 27% Autex 1% 3% CSR Auspoly Tasman 31% Bradford 3% 35% Cool or Cosy 5% Insulation Tasman Insulation Solutions 22% Solutions 33% Total Market 24% Glasswool Segment
Slide 22: Sales & Marketing
Sales & Marketing • Structure General Manager National Sales Manager National Marketing Manager State/Regional Managers Market Managers Branch Managers Marketing Support Sales Reps. Cust Service Distribution • 15 Sales & Distribution Branches • Highly customer and service focused
Slide 23: Sales & Marketing
Sales & Marketing • Product Sales Breakdown Other Polyester 5% 10% • Brands Glasswool • Insulco® Foil 57% 28% • Fat Batts® • Vapa-Chek® • Thermoblue®, Sonoblue ®
Slide 24: Sales & Marketing
Sales & Marketing • Distribution Channels Other Builder Direct 6% Industrial 5% 6% Hardware Retail/Trade 30% Plasterboard Dist. 8% S&F Contractor 13% Roofing Contractors 20% Roofing Manu. 12% • Relative strength in Hardware & Roofing • Growing share of S&F & Builder segments • Targeting growth in In
Slide 25: Development Opportunities
Development Opportunities • Upgrade glasswool fiberising technology • increase capacity (5-10%) • improve quality • product development • Grow technology sales • develop partnership with major international glasswool manufacturer • target small-medium plants • Mandatory insulation introduction • res
Slide 26: Sales History
Sales History Sales Flexaire 90 Amount in A$million's 80 70 60 50 40 30 20 10 0 19 9 6 19 9 7 19 9 8 19 9 9 2000 2001 2002 2003 2004 Financial Year Ended
Slide 27: Sales History
Sales History Sales Flexaire Sales 90 Amount in A$million's 80 70 60 50 40 30 20 10 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 Financial Year Ended
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