Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (October 2005)
28 slides from Fletcher Building's investor presentation, Oct 6, 2005
Slide 1: The Laminex Group
THE lAMINEX GRouP 6th October 2005
Slide 2: Cautionary Statement
Cautionary Statement This confidential 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 dif
Slide 3: Laminates and Panels Division comprised of The Laminex Group
The Laminates and Panels Division of Fletcher Building Limited is comprised solely of The Laminex Group. The Laminex Group was formed in 2002 after the acquisition and integration of Formica (September 1999) and Wesfi Limited (February 2001) with Laminex Industries. The Laminex Group was acquired by
Slide 4: Leading Brands
THE lamMINexX Group LEADING BRANDS THE laminex Group Ei, Laminex’ © FORMICA MELTECA Inspire your space”
Slide 5: Leading Products
LEADING PRODUCTS : =z,
Slide 6: Leading Products
LEADING PRODUCTS
Slide 7: Leading Market Positions
LEADING MARKET POSITIONS Market Shares 2004/05 Aus NZ High Pressure Laminate 65% 63% Decorated MDF 64% 42% Decorated Particleboard 41% 65% Raw MDF 31% 32% Raw Particleboard 29% 57% Source : Management Estimates
Slide 8: Vertical Integration
VERTICAL INTEGRATION Forest Waste and Sawmill Waste Thinnings Board Plant Low Pressure Laminate Plant High Pressure Laminate Plant Sales & Distribution Centre (Metro) Branch (Regional) Customer
Slide 9: Gympie Site - MDF
GYMPIE SITE - MDF
Slide 10: Melbourne Distribution Centre
MELBOURNE DISTRIBUTION CENTRE
Slide 11: Adelaide Showroom
ADELAIDE SHOWROOM
Slide 12: Laminex Branch - Maroochydore
LAMINEX BRANCH - MAROOCHYDORE
Slide 13: Major Locations
MAJOR LOCATIONS Major Sales & Distribution Sites Major Manufacturing Facilities
Slide 14: Customer Size Review
Customer Size Review Active Customers grouped by annualised sales Customer Size Review 20,000 # of customers 14,846 15,000 10,000 5,000 174 74 15 7 4 7 1 2 - 0k -1 -2 -3 -4 -5 0 5 5 -1 -1 -2 0 1 2 3 4 0k <5 5 10 15 50 Annualised Sales Range 04/05 Includes Cullity Timbers customers (not previously re
Slide 15: Revenue Growth 96/97 – 04/05
Revenue Growth 96/97 – 04/05 $NZm Inclusion of FWP & SPH Acquisition of into TLG Wesfi Feb 2001 from 1/7/03 1000 900 800 Acquisition of Note 1 Formica Sept 1999 700 600 500 400 300 200 100 0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 Note 1: Underlying sales in $A were 5.5% above 01/02 bu
Slide 16: EBITDA Growth 96/97 – 04/05
EBITDA GROWTH 96/97 – 04/05 NZ$M 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 Pre Acquisition Post FWP/SPH Integration
Slide 17: Revenue by Segment 2004/05
Revenue by Segment 2004/05 03/04 04/05 Export Export 10% Renovations 9% Renovations 24% 26% Commercial Commercial 33% 34% New Homes New Homes 33% 31% Source : Management Estimates
Slide 18: Revenue by Product 2004/05
Revenue by Product 2004/05 03/04 04/05 Export Export Other Other 10% 9% 16% 18% HPL HPL 15% 15% White/Raw White/Raw 31% 30% LPL LPL Decorative Decorative 28% 28%
Slide 19: Revenue by Major Region 2004/05
Revenue by Major Region 2004/05 03/04 04/05 Export Export 9% 10% New Zealand New Zealand 22% SA 24% SA 6% 5% NSW/ACT NSW/ACT 15% 16% WA WA 14% 13% VIC/TAS VIC/TAS QLD/NT 18% QLD/NT 18% 15% 15%
Slide 20: Plant Performance (per annum)
Plant Performance (per annum) 600,000 500,000 400,000 03/04 m3 300,000 04/05 200,000 100,000 - Particleboard MDF Substrate
Slide 21: Market Performance vs Forecast: Total Housing Starts
MARKET PERFORMANCE vs FORECAST TOTAL HOUSING STARTS (‘000) • Total housing starts fell 6% short of the Sept 2004 forecasts • Housing starts are forecast to drop by 3.9% in 2005/06 Source : BIS Shrapnel (Aust) & Infometrics (NZ) 05/06 04/05 04/05 04/05 05/06 forecast forecast forecast actual forecast
Slide 22: Market Performance vs Forecast: Total Building Non-Dwelling
MARKET PERFORMANCE vs FORECAST TOTAL BUILDING NON-DWELLING ($B) Source : BIS Shrapnel (Aust) & Infometrics (NZ) 05/06 04/05 04/05 04/05 05/06 forecast forecast forecast actual forecast vs 04/05 variance actual NZ 3.7 3.9 6.2% 3.9 0.0% AUS 16.1 16.1 0.0% 18.2 13.0% Group 19.8 20.0 1.1% 22.1 10.5%
Slide 23: Customer Delivery Performance (DIFOT)
Customer Delivery Performance (DIFOT) Customer Delivery Performance (DIFOT) 90% 85% 80% 75% 70% 65% 2002/03 2003/04 2004/05
Slide 24: Growth: Particleboard Capacity Expansion
GROWTH PARTICLEBOARD CAPACITY EXPANSION Dardanup 50,000m3 (15% increase in total capacity) $30m total capex Stage 1 commenced and due for completion June 2006 Improve environmental performance Increase use of recycled fibre Kumeu 13,000m3 (4% increase in total capacity) $3m total capex Improve envir
Slide 25: Growth: Product Development
GROWTH PRODUCT DEVELOPMENT •18 products in 18 months •Greenfirst product range •Gloss HPL •Engineered Stone •Wet area panelling
Slide 26: Growth: Kitchen Components
GROWTH KITCHEN COMPONENTS •Develop kitchen carcass business •Expand kitchen door business •Develop new Web based kitchen design tool •Joint Venture with PlaceMakers for design, supply and installation of kitchens to multidwelling builders
Slide 27: Growth: Asia and Productivity Improvement
GROWTH ASIA •Develop manufacturing capability in Asia –HPL –Decorated Board PRODUCTIVITY IMPROVEMENT •WA Sales and Distribution Integration •Paper treating for LP in NZ •Restructure laminating of decorated board to service local needs •Recycled wood •Renewable energy generation •NZ Integration
Slide 28: Outlook
OUTLOOK 1. Consistent Earnings Growth in softening market 2. Resilience has improved through diversification of market segment geographic segment product segment
Fletcher Building — Investor Presentation (October 2005) on 6ix