Fletcher Building Limited · NZX:FBU
Fletcher Building — Shareholder Meeting (October 2021)
22 slides from Fletcher Building's shareholder meeting presentation, Oct 19, 2021
Slide 1: 2021 Annual Shareholders' Meeting
2021 Annual Shareholders’ Meeting 19 October 2021 Fletcher Building Limited Annual Shareholders’ Meeting 2021
Slide 2: Bruce Hassall, Chair
Bruce Hassall Chair Fletcher Building Limited Annual Shareholders’ Meeting 2021
Slide 3: Directors
Directors Martin Brydon Barbara Chapman Peter Crowley Rob McDonald Doug McKay Cathy Quinn Page 3 | Fletcher Building Limited Annual Shareholders Meeting 2021 | © October 2021
Slide 4: Meeting agenda
Meeting agenda Chair’s address Chief Executive Officer’s address Voting on Resolutions General Q&A Page 4 | Fletcher Building Limited Annual Shareholders Meeting 2021 | © October 2021
Slide 5: FY21 results at a glance
FY21 results at a glance Revenue EBIT1 Net Earnings/(Loss) EPS $8,120m $669m $305m 37.0c FY20 $7,309m FY20 $160m FY20 ($196)m FY20 (23.5c) * Before significant items Cash flows from EBIT1 margin Share buyback Dividend 8.2% $300m 30.0cps operating activities $889m FY20: 2.2% underway FY20: nil FY20 $
Slide 6: Board focus on safety, sustainability and delivery across value chain
Board focus on safety, sustainability and delivery across value chain Safety Sustainability Delivery across value chain Total Recordable Injury Frequency Carbon (CO2) Emissions Investing in local manufacturing Rate1 (thousand Tonnes) 5.7 1,238 Developing and enabling 5.0 -5% performance and grow
Slide 7: Driving improved outcomes for our people and customers
Driving improved outcomes for our people and customers Driving Diversity with targets in place Focus on lifting customer service and performance from 41 NPS1 to ≥ 55 Focus on lifting employee engagement scores from 66% Improved remuneration structures GirlBoss New Zealand 1. Net Promoter Sco
Slide 8: Delivering long term value for shareholders
Delivering long term value for shareholders Our People are effectively & safely navigating COVID-19 challenges including observing strict protocols Expect vaccinated workforces to result in no further requirement for stringent lockdowns Delivering returns to shareholders, driving strategy and
Slide 9: Ross Taylor, Chief Executive Officer
Ross Taylor Chief Executive Officer Fletcher Building Limited Annual Shareholders’ Meeting 2021
Slide 10: FY21 performance delivered, well-positioned for further performance improvements and growth
FY21 performance delivered, well-positioned for further performance improvements and growth FY19 FY20 FY21 FY22 FY23+ Performance And Growth Refocus & stabilise Set up for Performance Ongoing performance & growth performance Page 10 | Fletcher Building Limited Annual Shareholders Meeting 2021
Slide 11: FY21 - growth in margins, cash flows and returns
FY21 - growth in margins, cash flows and returns EBIT Margin1 (%) Trading Cash Flow3 ($m) ROFE5 (%) 8.2% 929 18.6% 7.2% FY20 13.3% 585 565 2.2% 3.7% FY192 FY20 FY21 FY19 FY20 FY21 FY19 2 FY20 FY21F Path to c.10% EBIT margin1 in FY23 Cash conversion4 well above ≥ 60% target Exceeded ROFE ≥ 15%
Slide 12: Strong balance sheet, supporting capital returns and investment
Strong balance sheet, supporting capital returns and investment Leverage (Net Debt / EBITDA) Strong cash-flows resulting in sustained reduction in leverage Capital return via on-market share buyback of up to $300m through to Jun-22 2.0x Non-recurring investment and rebuild of land & housing st
Slide 13: Strategic goals focused on continuing to drive operational performance and top line growth
Strategic goals focused on continuing to drive operational performance and top line growth Vision To be the leader in New Zealand and Australian building products and solutions Economic Leadership in Market leading performance innovation, Strategic Zero injuries every Lowest delivered customer solut
Slide 14: Clear path to c.10% EBIT margin in FY23
Clear path to c.10% EBIT margin in FY23 EBIT Margin1 (%) Pathway to c.10% EBIT margin in FY23 1. Australia margins on track for 5–7% c.10% 2. Construction margins on track for 3-5% 8.2% 7.2% 3. NZ Core further margin improvement 4. Residential growth at higher margins than balance of Group FY19 FY21
Slide 15: Driving medium-term growth with investments within our base numbers
Driving medium-term growth with investments within our base numbers Investments within our base numbers Digital sales run-rate of c.$450m Focus on product adjacencies Focus on eCommerce and customer ecosystems Accelerated implementation of a fit-for-purpose systems environment Capex: c$50-10
Slide 16: A strong emerging pipeline of larger growth opportunities
A strong emerging pipeline of larger growth opportunities Residential: Residential Units Taken to Profit Additional c.550 housing units taken to profit p.a. by FY25 c.1,400 Scale Clever Core off-site manufacturing: achieves a strong +c.550 business in own right & allows optimisation of annual
Slide 17: Strong residential and infrastructure markets, stable commercial
Strong residential and infrastructure markets, stable commercial Residential consents continue to be strong driven by a structural undersupply of housing; this and capacity constraints should lead to a solid and elongated profile for actual work done Commercial remains steady Infrastructure -
Slide 18: COVID-19 impact on FY22
COVID-19 impact on FY22 July/August: pre-lockdown volumes tracking above prior year August/September: Full lockdown of all NZ businesses for 2 weeks, and Auckland for an additional 3 weeks; GBC Kiln able to keep running throughout September /October: post-lockdown volumes showing rapid and str
Slide 19: Outlook
Outlook While COVID lockdowns have impacted trading in the first quarter of FY22, the activity pipeline remains strong in New Zealand and Australia. This is driving a robust bounce back in market demand as government restrictions ease Operating disciplines in good shape across the Group, input c
Slide 20: Resolutions and Voting
Resolutions and Voting Fletcher Building Limited Annual Shareholders’ Meeting 2021 Note: xxx Source: xxx
Slide 21: Resolutions
Resolutions Ordinary Resolutions Resolution 1 – Re-election of Rob McDonald Resolution 2 – Re-election of Doug McKay Resolution 3 – Re-election of Cathy Quinn Resolution 4 – Auditor fees and expenses Page 21 | Fletcher Building Limited Annual Shareholders Meeting 2021 | © October 2021
Slide 22: 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 19 Octo
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