Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (November 2006)
27 slides from Fletcher Building's investor presentation, November 2006
Slide 1: Analysts Briefing November 2006
Analysts Briefing November 2006 Plasterboard Insulation Aluminium Metal Roof Tiles Sinkware Chris Ellis Chief Executive, Building Products
Slide 2: Cautionary Statement
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 materiall
Slide 3: Building Products Division - Structure
Building Products Division - Structure Plasterboard Insulation Aluminium Metal Roof Tiles Sinkware Other Businesses Plasterboard Insulation Aluminium Metal Roof Tiles Sinkware Analysts Briefing – November 2006
Slide 4: Results Record (Restated)
Results Record (Restated) June 2005 December 2005 June 2006 (12 months) (6 months) (12 months) $m's Operating Revenue* 591 326 629 EBIT 145 76.7 142.3 Margin 25% 24% 23% Total Funds Employed 455 477 511 EBIT/Funds 33% 32% 28% * excludes inter-company revenue * Proforma returns based on 12 months of
Slide 5: Organic Growth
Growth Organic Growth Operational Performance Improvement Manufacturing and Market Performance (KPI’s ie IFOTIS, OEE) Margin improvement, EBIT, Funds, Cash Targeted geographic expansion Housing envelope infill / adjacent product development Analysts Briefing – November 2006
Slide 6: House envelope infill
House envelope infill Fletcher Insulation Fletcher Insulation sarking overlay ceiling batts Pynefloor™ particleboard flooring Fletcher Steel AHI roofing structural steel I beams Laminex HPL Tasman house Plyco doors wrap Oliveri sinks Firth bricks FAL aluminium and pavers Windows and doors Laminex de
Slide 7: Major Acquisitions
Growth Major Acquisitions Tasman Building Products (October 2003) Amatek (March 2005) Insulation Solutions (Glasswool and Foil Insulation) Forman Group (November 2006) Analysts Briefing – November 2006
Slide 8: Market Driven Operational Excellence
Key Strategies Market Driven Operational Excellence IFOTIS OEE Utilisation rates Change over times Flexibility to support differentiation based on high service levels Organisation alignment Margin improvement Analysts Briefing – November 2006
Slide 9: Geographic Diversification
Key Strategies Geographic Diversification Metal Roof Tiles Value proposition based on product performance Product well established in NZ new-build Global niche position with growth potential USA Europe Japan Potential to increase rate of growth through in-region manufacture Tasman Si
Slide 10: Plasterboard – Key Facts
Plasterboard – Key Facts Products Comments Plasterboard Sole Manufacturer of Auckland Plasterboard in New Compounds/Accessories Zealand Systems 95% Market Share 2 Manufacturing Plants (Auckland and Christchurch) Distribute through merchants, including Wellington all major groups 270
Slide 11: Plasterboard strategy: Service and Operational Excellence
Plasterboard The Winstone Wallboards Strategy is based on ‘Service and Operational Excellence Supported by Solutions’ Strategy Fundamentals Outcomes Service Promise Product Quality Industry Service Awards Hassle Free 95% Market Share Lowest Cost Strong Financial Returns Channel Align
Slide 12: Plasterboard
Plasterboard Services New Products The new distribution centre, The Gate, GIB MaxSet® 90 is taking share from has led to an increase in IFOTIS imported product Market Segmentation GIB Ultraline® PLUS Lining System is targeted at superior lining outcomes for high value homes Analysts Briefing – Novem
Slide 13: Insulation – Key Facts
Insulation – Key Facts Insulation has superior competitive infrastructure, technology and brands including: Manufacturing facilities – 4 out of 5 of the Glasswool (GW) plants in Australasia, plus 2 laminated foil plants and 1 polyester plant An exclusive License Agreement with Owens Corning (t
Slide 14: Insulation has most of the Plants - 4 of 5 Glasswool Plants
Insulation has most of the Plants - 4 of 5 Glasswool Plants Fletcher Insulation Glasswool Foil Polyester CSR G Glasswool F Foil R Rockwool G Sydney R Auckland GW Plants Annual Tonnes (Capacity) F Melbourne Auckland 10,000 12% Christchurch 4,000 5% Sydney 12,000 15% Melbourne 25,000 31% Christchurch
Slide 15: Insulation comprehensive Branch Network
Insulation comprehensive Branch Network - Modern and well positioned Perth Sydney Melbourne Analysts Briefing – November 2006
Slide 16: Insulation - Growth
Insulation - Growth Insulation enjoys high (75% of Australasia) share in a high margin and growing market The Australasian insulation market will grow in the next 10 years as: Climate change issues necessitate more intensive energy demand management in buildings Australasia’s building code i
Slide 17: R Value Batt Required in Ceiling
Regulation likely growth driver Australia's Insulation Regulatory Code is roughly half that of similar OECD Countries 6 R Value Batt Required in Ceiling 5 4 3 2 Aus USA Climate Equivalent 1 0 Darw in Brisbane A delaide Perth Sydney Melbourne Hobart Canberra Analysts Briefing – November 2006
Slide 18: Fletcher Aluminium – Key Facts
Fletcher Aluminium – Key Facts Comments Vertically integrated manufacturing plant. Extruders of exclusively designed aluminium profiles that are powdercoated or anodised, packaged on site and dispatched throughout New Zealand North Island Revenue 70% – windows and doors 30% – extruded shapes 55
Slide 19: Fletcher Aluminium – NZ Distribution Network
Fletcher Aluminium – NZ Distribution Network Full range of window and door products in Residential, Commercial and Composite Systems Unique products to market in Residential Systems Foldback Bifold Euroslider Sliding Door Eurostacker Sliding Door Comprehensive coverage of New Zealand wit
Slide 20: Fletcher Aluminium
Fletcher Aluminium Designer and manufacturer of premium architectural window and door systems and other aluminium products to both domestic and international customers Franchisee distribution network. Single site extrusion and finishing facilities Launch a number of innovative product solution
Slide 21: Metal Roof Tiles
Metal Roof Tiles • Largest manufacturer of steel roof tiles world wide, with plants in Auckland, Malaysia and California • Technology and new products developed in-house to meet market demand • Planning to establish manufacturing in Europe to support faster growth there • Strong growth of metal tile
Slide 22: Domestic & Export Locations
Domestic & Export Locations Employees = 380 Volume = 15m tiles p.a. = 7m sq mtrs roofing Owned Plants - Auckland, Nilai (Malaysia), Corona (California) Licensed Plants - Belgium, Denmark, Indonesia, Chile Domestic Sales Offices - Auckland, Wellington, Christchurch, Brisbane Off-shore Sales Offices:
Slide 23: Tasman Sinkware – Key Facts
Tasman Sinkware – Key Facts Employees = 100 Head Office & Manufacturing Plant (Adelaide) Branch Offices (Brisbane, Sydney, Melbourne) Australian Agents (Canberra, Darwin, Hobart, Perth, Townsville, Wagga Wagga) US Warehouses / Offices (Corona, Ohio) Overseas Agents (NZ, Canada, UK, HK, Singapore) An
Slide 24: Tasman Sinkware - Performance
Tasman Sinkware - Performance Sink Sales Volumes (indexed to 2002) North American Exports 134 130 140 118 121 120 100 100 millions 80 60 40 20 0 2002 2003 2004 2005 2006 FY01 FY02 FY03 FY04 FY05 FY06 Note: 2006 Domestic volume fell in a declining market but a higher mix of Oliveri (premium product)
Slide 25: Tasman Sinkware - Growth Strategies
Tasman Sinkware - Growth Strategies Domestic Maximise local opportunities for new product innovation & continue to broaden distribution “Bolt-on” accessories Introduce imported range of sinks to improve competitiveness at bottom end of market Export Pursue significant opportunities in US mar
Slide 26: Forman Group
Forman Group Comments Distributors and installers of Insulation, Ceiling and Wall Systems Whangarei Manufacturers of Insulation and Foam Systems Leading market position in the commercial and industrial Auckland building markets for insulation and Ceiling and Wall Systems Hamilton National di
Slide 27: Analysts Briefing – November 2006
Analysts Briefing – November 2006
Fletcher Building — Investor Presentation (November 2006) on 6ix