Fletcher Building Limited · NZX:FBU
Fletcher Building — Shareholder Meeting (2002)
35 slides from Fletcher Building's shareholder meeting presentation, 2002
Slide 1: Annual Shareholders' Meeting 2002
Annual Shareholders’ Meeting 2002
Slide 2: Annual Shareholders' Meeting 2002 - Chairman
Annual Shareholders’ Meeting 2002 Dr Roderick Deane Chairman
Slide 3: Directors
Directors o Dr Roderick Deane (Chairman) o Paul Baines o Hugh Fletcher o Ralph Norris o Sir Dryden Spring o Kerrin Vautier o Ralph Waters (Managing Director) 2
Slide 4: Agenda
Agenda o Directors o Auditor’s Remuneration o Constitution o Share Placements o Laminex Acquisition o Capital Notes o Other Business o Questions/Comment 3
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Slide 6: Earnings
Earnings After Tax Earnings (Pre-Unusuals) $m 100 88 50 18 0 2001 2002 Restated on a comparable basis 5
Slide 7: Revenue
Revenue Revenue per Half Year NZ$m 1600 1427 1469 1378* 1313 0 Dec 00 Jun 01 Dec 01 Jun 02 Restated on a comparable basis * Sale of Construction Australia operations reduced revenue 6
Slide 8: Return on Capital
Return on Capital EBIT/Average Capital Employed % 30 23 9 0 2001 2002 Definition: EBIT pre-unusuals/Average Net Debt + Equity + Capital Notes – Deferred Tax Asset 7
Slide 9: Return on Equity
Return on Equity After Tax Earnings/Average Equity % 17 20 -44 0 -50 2001 2002 Definition: Net Earnings after Capital Notes Interest/Average Equity 8
Slide 10: Divestments
Divestments o Cyclone Wire o Fletcher Construction Australia o Co-generation, Australia o Fletcher Aluminium, Australia o Concrete, Bolivia 9
Slide 11: Share Price
Share Price NZ$ 2 July 2001 to 28 June 2002 3.0 2.0 J-01 J-01 A-01 S-01 O-01 N-01 D-01 J-02 F-02 M-02 A-02 M-02 J-02 10
Slide 12: Total Shareholder Return
Total Shareholder Return % 30 24.85% 4.70% 0 -4.70% -10 Fletcher Building NZSE 40 ASX 200 11
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Slide 14: Governance
Governance o 1 executive director, of 7 o Board Committees – Remuneration – Audit o Executive Sessions o Advisory/Consultancy limits o Written Policies – insider trading – conflicts of interest 13
Slide 15: Governance
Governance o Directors’ shareholdings o Delegated authorities o Compliance reports o Committee charters o Disclosure framework 14
Slide 16: o)) = iS S) aa)
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Slide 17: Laminex Acquisition
Laminex Acquisition o Enhances the Group’s position o No effect on domicile/identity o Addresses the issue of growth 16
Slide 18: Laminex - Attributes
Laminex - Attributes o High quality exposure in Australia o Exports to Asia o Strong New Zealand position o Growth record o Proven management o Synergy benefits o Performance prospects 17
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Slide 20: Laminex - Price
Laminex - Price o A$645 million plus up to A$20 million on performance o Approximately 6 times projected earnings o Immediately positive to earnings per share 19
Slide 21: Laminex - Placement
Laminex - Placement o 43.7 million shares @ NZ$2.95 placed on 18 September 2002 o Favourable reaction - NZ$0.14 above then market price 20
Slide 22: o)) = iS S) aa)
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Slide 23: Capital Notes
Capital Notes o $150 million new issue o Five Years minimum 8.6% o Seven Years minimum 8.85% o $25 million preferential pool 22
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Slide 25: Interest Cover
Interest Cover $m 500 401 294 5.8 times 4.0 times 101 51 0 Pre-Transaction Post-Transaction (06/02) (combined results 06/02) EBITDA Interest 24
Slide 26: Gearing
Gearing Net Debt : Net Debt + Equity Net Debt Equity $997m 58% $398m 40% $591m $720m Pre-Transaction Post-Transaction (06/02) (combined balance sheets 06/02) 25
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Slide 28: Revenue Share
Revenue Share New Zealand 70% South Australia Pacific 25% 5% 27
Slide 29: Assets
Assets $bn 3 2.4 1.5 0 Pre-Transaction Post-Transaction (06/02) (combined balance sheets 06/02) 28
Slide 30: New Zealand Manufacturing Positions
New Zealand Manufacturing Positions o Plasterboard o Woodpanels o Aluminium o Steel o Aggregates o Cement o Concrete Products o Construction 29
Slide 31: Australian Positions
Australian Positions o Decorative surfaces o Woodpanels o Associated products 30
Slide 32: Distribution
Distribution o New Zealand – Construction – Trade and retail outlets o Australia – Laminex specialised distributors – Licensed distributors 31
Slide 33: Enhanced Performance Prospects
Enhanced Performance Prospects o Higher average growth rates in Australia o Hedge against New Zealand economic cycles 32
Slide 34: Board Recommendation: Unanimous Support for Approval
Board Recommendation UNANIMOUS SUPPORT FOR APPROVAL 33
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