Fletcher Building Limited · NZX:FBU
Fletcher Building — Macquarie Australia Conference 2023
20 slides from Fletcher Building's conference presentation, May 2, 2023
Slide 1: Macquarie Australia Conference Presentation
Macquarie Australia Conference Presentation Fletcher Building Limited Ross Taylor Chief Executive Officer May 2023
Slide 2: Significant NZ & Australia building products & solutions provider
Significant NZ & Australia building products & solutions provider with strong market positions & overall revenue roughly weighted to the market sectors Focus across NZ & Australia Strong market positions Revenue1 weighted to market Businesses with 22% #1 or #2 Infrastructure 51% market Residential p
Slide 3: Residential down short-term, but long-term macro tailwinds in New Zealand
While residential is down in short-term, our geographic & building sector focus is supported by solid long-term macro tailwinds in New Zealand… Strong NZ migration patterns continue1 Commercial investment forecast robust Driving infrastructure projects ‘000 Commercial WPIP ($b) Infrastructure WPIP (
Slide 4: …as well as in Australia
…as well as in Australia Solid population growth continues Commercial investment forecast robust Strong pipeline of infrastructure projects Population (millions) Commercial Work Done (A$b) Infrastructure Work Done (A$b) 30 70 150 25 60 120 50 20 40 90 15 30 60 10 20 5 30 10 0 0 0 • Strong rebound of
Slide 5: Businesses operating in industry top quartile EBIT margin performance
Our businesses are across the building value chain, and they are either operating in their industry top quartile, or we have plans to get them there EBIT Margin Industry Economic Performance Upper quartile now FY19 now now now FY19 FY19 Median FY19 now now FY19 Lower quartile FY19 Building Products
Slide 6: Well-positioned for macro-trends as an innovation fast follower
NZ & Australia relative geographic isolation & our scale “In-Country” business positions, means we’re well-positioned for macro-trends... We can be an innovation fast follower with the scale to invest ahead of the competition Advancements in Emerging Product & Evolving Building & Sustainability Auto
Slide 7: Our vision, purpose and strategic goals
Our vision, purpose and strategic goals continue to underpin our journey Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic Leadership in Market leading performance innovation,
Slide 8: Our strategy positions us well for short- and long-term
Our strategy positions us well to continue to drive business performance in the short- and long-term 01 02 03 04 05 Significant Strong enduring Retain benefit Established Longer term near-term financial of underlying pipeline of non-financial profit growth position, well- margin gains growth metri
Slide 9: 1. Significant near-term profit growth
1. Significant near-term profit growth EBIT1 ($m) EBIT1 margin (%) +170 +>$200m 800-855 bps 756 8.9% 8.2% 668 7.2% 598 2.2% 160 FY19 2 FY20 FY21 FY22 FY23F 3 FY19 2 FY20 FY21 FY22 1. Before significant items Page 9 | Fletcher Building Limited Macquarie Conference Presentation | © May 2023 2. FY19 is
Slide 10: 2. Strong enduring financial positions and returns
2. Strong enduring financial positions and returns Return on Funds Employed1 (%) Dividends (cps) Leverage2 & Funding 19.3% 40.0 17.8% 2.0x ≥ 15% Target Target FY20 22.0 range 1.25x 1.0x 0.61x 18.0 18.0 FY22 HY23 FY22 HY23 FY22 HY23 Exceeded ROFE ≥ 15% target Interim Dividend Final Dividend Total
Slide 11: 2. Well positioned for a softer FY24
2. Well positioned for a softer FY24 Strong balance sheet Most businesses have a differentiated and sustainable competitive position Positioning cost base and working capital now for softer FY24, focused on margin protection Current expectation is for FY24 materials & distribution volumes to
Slide 12: 3. Retain benefit of underlying margin gains & drive further improvement
3. Retain benefit of underlying margin gains & drive further performance improvement We have a robust plan to drive further margin improvement across the portfolio Continuing to drive Investment growth Continued improved More focused & economic performance of targeted in margin- performance in Austr
Slide 13: 4. Established pipeline of growth investments – primarily organic
4. Established pipeline of growth investments – primarily organic c.$700m growth capex FY23-26 Screened against robust criteria c.$100m full run-rate EBIT1 growth Waipapa ROFE ≥ 15% c.$25m from TUMU TUMU Distribution & M&A Timber acquisition Waipapa Timber acquisition acquisitions in FY24 Resilient,
Slide 14: 5. Longer term non-financial metrics: safety and engagement
5. Longer term non-financial metrics underpin achieving sustainable outperformance Safety: good progress continues Engagement: focus on continued improvement Now Target Now Target Total Recordable Injury Total Recordable Injury Employee Engagement Rating Employee Engagement Rating Frequency Rate 1 F
Slide 15: 5. Longer term non-financial metrics: customer and sustainability
5. Longer term non-financial metrics underpin achieving sustainable outperformance Customer: driving customer solutions & services Sustainability: 30% lower carbon by 2030, net zero by 2050 Now Target Now Target Net Promoter Score1 Carbon (CO2) Emissions2 2,000 1,800 -30% FY30 1,600 40 41 36 1,400 1
Slide 16: Our strategy positions us well for short- and long-term
Our strategy positions us well to continue to drive business performance in the short- and long-term 01 02 03 04 05 Significant Strong enduring Retain benefit Established Longer term near-term financial of underlying pipeline of non-financial profit growth position, well- margin gains growth metri
Slide 17: Questions / Appendix Slides
Questions Appendix Slides Fletcher Building Limited
Slide 18: Important Information
Important Information This presentation has been prepared by Fletcher Building Limited and its group of companies (“Fletcher Building”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This presentation dated 2 May 2
Slide 19: Scale in-country manufacturer & distributor of building products
We are a scale in-country manufacturer & distributor of building products, with complementary residential development & construction businesses New Zealand Australia Key Figures $6.5b Rev $643m EBIT 10,100 people $2.8b Rev $113m EBIT 4,600 people Products & Distribution Residential & Dev’t Construct
Slide 20: Sustainability important part of our DNA
Sustainability important part of our DNA “Improving the world around us through smart thinking simply delivered” We have a focussed plan to drive sustainability outcomes Leading to world-class sustainability credentials We will ensure our growth is achieved while remaining true to Member of S&P Sust
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