Fletcher Building Limited · NZX:FBU

Fletcher Building — Investor Presentation (November 2006)

16 slides from Fletcher Building's investor presentation, November 2006

  1. Slide 1: Analysts Tour, November 2006 - New Wanaka Store

    ANALYSTS TOUR, NOVEMBER 2006 New Wanaka Store Opened 28 August 2006 1

  2. 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

  3. Slide 3: Strategic Direction

    STRATEGIC DIRECTION A collection of businesses with strong strategic links Laminates Other Building Steel & Concrete Manufacturers Products Panels Dedicated Shared Other Construction Distribution Distribution Distribution Markets Markets 3

  4. Slide 4: PlaceMakers Vision

    PLACEMAKERS VISION To be the World Class supplier of choice for builders and DIY project customers. 4

  5. Slide 5: Market Leadership

    MARKET LEADERSHIP Sustainable Competitive Advantage 1. PlaceMaker’s brand power - Range of products/services - Knowledge - Delivery - Service Trade and Retail customers 2. Joint Venture Operator Model - Model attracts and incentivises the right people - Owner (JVO) to Owner (Customer) relationships

  6. Slide 6: Typical Customers and Product Groups

    TYPICAL CUSTOMERS PRODUCT GROUP DIY Small Trade Trade Large Subbie Builder Volume Frame & Truss Other structural timber Interior Panels / Plasterboard Doors / Windows ITM MARKET POSITION Ext. Cladding / Roofing Insulation Other Outdoor Timber CARTERS Concrete / Agg. / MEGA Masonry / Rebar Plywood Ap

  7. Slide 7: Market Position

    MARKET POSITION Past Present Future PlaceMakers PlaceMakers PlaceMakers Individual products Groups of products Combinations of and services that and services Installed solutions delivering provide various benefits providing customer Increased efficiency to customers solutions and profitability to cu

  8. Slide 8: Key Metrics

    KEY METRICS • Number of Outlets - 55 • Number of Staff - 2825 • 2006 Revenue - $956M • 2006 EBIT - $75M • Funds Employed - $132M • EBIT:Funds Employed - 56.8% 8

  9. Slide 9: New Zealand Builders Merchant Market (2005/2006)

    NEW ZEALAND BUILDERS MERCHANT MARKET (2005/2006) 5 1.6 4.4 4 • The market has been Billions of defined as those Dollars 3 0.3 0.5 categories sold by 0.6 PlaceMakers 2 0.5 1 0.9 • Total permitted construction spend in 0 New Zealand in 2006 was $9.9B, including Bunnings / Total market Other* ITM Place

  10. Slide 10: Historical Performance – Sales Revenue

    HISTORICAL PERFORMANCE – SALES REVENUE PlaceMakers Total Company Revenue 2002 - 2006 1000 900 800 700 600 $M 500 400 300 200 100 0 2002 2003 2004 2005 2006 10

  11. Slide 11: Historical Performance - EBIT

    HISTORICAL PERFORMANCE - EBIT PlaceMakers Total EBIT 90 80 70 60 50 $M 40 30 20 10 0 FY02 FY03 FY04 FY05 FY06 11 FDL JV

  12. Slide 12: Historical Performance – EBIT Share

    HISTORICAL PERFORMANCE – EBIT SHARE PlaceMakers Total Company Share of EBIT 120% 100% 80% 60% 40% 20% 0% FY02 FY03 FY04 FY05 FY06 12 FDL JV

  13. Slide 13: Store Upgrades and New Facilities to June 2007

    STORE UPGRADES AND NEW FACILITIES TO JUNE 2007 Auckland Branches: 1: Northland Whangaparaoa Albany Wairau Park Westgate New Lynn Cook Street 6: Bay of Plenty Mt. Wellington 5: Waikato / Coromandel Cook Street Depot 7: East Cape Pakuranga Takanini 10: Taranaki 8: Taupo Maddren Timber – 9: Hawke’s Bay

  14. Slide 14: Key Strategic Programmes 06/07

    KEY STRATEGIC PROGRAMES 06/07 1. Acquisitions 2. Network Development 3. Systems Enablement 4. Extending into Related Trade markets 5. Continuous Improvement 14

  15. Slide 15: Acquisition Highlights

    ACQUISITION HIGHLIGHTS Maddrens Timber November 15th, 2006 • Fletcher Distribution Limited took ownership of the Maddren Timber building materials distribution business • This acquisition, along with Mangawhai Heads represents further progress in expanding PlaceMakers nationwide store coverage. • Co

  16. Slide 16: Systems Enablement Highlights

    SYSTEMS ENABLEMENT HIGHLIGHTS • Approval gained to invest $22M over 3 years for the implementation of a Business Process Improvement change management project. • To be supported by an enabling Information Technology project to implement a new ERP system. • Replace the ageing ACE platform with Oracle

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