Fletcher Building Limited · NZX:FBU
Fletcher Building — Investor Presentation (November 2006)
28 slides from Fletcher Building's investor presentation, Nov 29, 2006
Slide 1: Analysts Presentation, Perth, Western Australia
ANALYSTS PRESENTATION PERTH, WESTERN AUSTRALIA 29th November - 1st December 2006
Slide 2: Cautionary Statement
Cautionary Statement This confidential 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 dif
Slide 3: The Laminex Group was formed in 2002
The Laminex Group was formed in 2002 after the acquisition and integration of Formica Australia (September 1999) and Wesfi Limited (February 2001) with Laminex Industries. The Laminex Group was acquired by Fletcher Building Limited in November 2002 and subsequently integrated with the existing Scott
Slide 4: Leading Brands
THE lamMINexX Group LEADING BRANDS THE laminex Group e ® = Laminex eG | nspire your space ) Fronmen (we World’s favourite laminate o> SeN= O'BRIEN GROUP
Slide 5: Leading Products
THE laMINeEX Group LEADING PRODUCTS
Slide 6: Leading Products
LEADING PRODUCTS
Slide 7: Leading Market Positions
LEADING MARKET POSITIONS Market Shares Year to June 2006 Aus NZ High Pressure Laminate 65% 63% Decorated MDF 53% 45% Decorated Particleboard 43% 69% Raw MDF 31% 34% Raw Particleboard 29% 56% Source : Management Estimates
Slide 8: Vertical Integration
VERTICAL INTEGRATION Forest Waste and Sawmill Waste Thinnings Board Plant Low Pressure Laminate Plant Componentry High Pressure Business Laminate Plant Sales & Distribution Centre (Metro) Branch (Regional) Customer
Slide 9: Dardanup Sites
DARDANUP SITES Particleboard Plant Dynea Resin Plant JV Wespine Sawmill JV
Slide 10: Prospect Distribution Centre
PROSPECT DISTRIBUTION CENTRE
Slide 11: Murarrie Showroom
MURARRIE SHOWROOM
Slide 12: Major Locations
MAJOR LOCATIONS Major Sales & Distribution Sites Major Manufacturing Facilities
Slide 13: Customer Size Review
Customer Size Review Active Customers (Aust + NZ) grouped by annualised Sales Range 45 ,6 13 15,000 # of Customers 10,000 5,000 166 81 12 6 6 6 1 2 - 2 3 4 5 10 5 5 -1 k 00 -1 -2 1- 2- 3- 4- 0k 5- 10 15 <5 50 Annualised Sales Range Includes Cullity Timbers customers (not previously reported)
Slide 14: Revenue Growth 00/01 – 05/06
Revenue Growth 00/01 – 05/06 $NZm Acquisition of O’Brien’s Inclusion of May 2006 FWP & SPH 1200 Acquisition of into TLG from 1/7/03 Wesfi Feb 2001 1000 Note 1 800 600 400 200 0 00/01 01/02 02/03 03/04 04/05 05/06 Note 1: Underlying sales in $A were 5.5% above 01/02 but appreciation of the $NZ agains
Slide 15: EBITDA Growth 00/01 – 05/06 NZ$M
EBITDA GROWTH 00/01 – 05/06 NZ$M 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 00/01 01/02 02/03 03/04 04/05 05/06 Pre Acquisition Post FWP/SPH Integration
Slide 16: Revenue by Segment 2005/06
Revenue by Segment 2005/06 04/05 05/06 Export Export 9% Renovations Renovations 10% 26% 26% Commercial Commercial 34% 33% New Homes New Homes 31% 31% Source : Management Estimates
Slide 17: Revenue by Product 2005/06
Revenue by Product 2005/06 04/05 05/06 Export HPL Export HPL 9% 15% 10% 14% Other 18% Other 21% LPL Decorative LPL Decorative 26% 28% White/Raw White/Raw 30% 29%
Slide 18: Revenue by Major Region 2005/06
Revenue by Major Region 2005/06 04/05 05/06 Export Export 10% 9% New Zealand New Zealand 21% SA 22% SA 6% 6% NSW/ACT NSW/ACT 16% 15% WA WA 15% 14% VIC/TAS VIC/TAS QLD/NT 18% QLD/NT 18% 15% 15%
Slide 19: Board Plant Performance (m3 per annum) – 05/06
Board Plant Performance (m3 per annum) – 05/06 600,000 500,000 400,000 2004/05 300,000 2005/06 200,000 100,000 0 Particleboard MDF
Slide 20: Customer Delivery Performance (DIFOT)
Customer Delivery Performance (DIFOT) 100 90 80 70 60 50 40 30 20 10 0 2002/03 2003/04 2004/05 2005/06
Slide 21: Growth: Particleboard Capacity Expansion
GROWTH PARTICLEBOARD CAPACITY EXPANSION Dardanup 50,000m3 (15% increase in total capacity) $30m total capex Stage 1 ($18m) due for completion December 2006 Improve environmental performance Increase use of recycled fibre Kumeu 13,000m3 (14% increase in total capacity) $3m total Capex completed in Ma
Slide 22: Growth: Product Development
GROWTH PRODUCT DEVELOPMENT • 18 products in 18 months • Greenfirst product range • Formica Flooring • Engineered Stone • Wet area panelling
Slide 23: Growth: Kitchen Components
GROWTH KITCHEN COMPONENTS • Ballarat door plant re-engineered to carcasses, doors, panels (kitchen components) • Manufacture and sales of complete kitchens to multi-unit developers (taking away from Asian imports) • Taken our rights to 20/20 Design package for Australia • Successfully acquired O’Bri
Slide 24: Growth: Going Forward
GROWTH GOING FORWARD • Starting to supply flatpack kitchens to big box retailers in Australia • Starting to supply finished kitchens to whitegood retailers • Capital spend on a new state of the art decorated door facility • Developing finished benchtop business in Australia
Slide 25: Growth: Asia and Productivity Improvement
GROWTH ASIA • Develop sourcing capability in Asia – HPL 50 colours 375 – Decorated Board PRODUCTIVITY IMPROVEMENT • WA Sales and Distribution Integration • Paper treating for LPM in NZ • Restructure laminating of decorated board to service local needs • Recycled wood • Renewable energy generation
Slide 26: Growth: Environmentally Preferable Products
GROWTH - • is a range of environmentally preferable products developed to meet the growing demand for environmentally sustainable solutions from the property industry • Products are certified by third party eco-labelling programs covering Australia, New Zealand, Korea and China • 50% of the revenue
Slide 27: Outlook
OUTLOOK 1. Consistent earnings growth in softening market 2. Resilience has improved through diversification of - market segment - geographic segment - product segment
Slide 28: Taupo
TAUPO • Fire on 11/9/06 completely destroyed MDF press • Insurance policy covers new for old replacement and business interruption • Total MDF production capacity of 164,000m3 per annum • Export ceased on day after fire • Any export stock at warehouse redirected to domestic customers • All export cu
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