Investor Presentaiton

Made public by

sourced by PitchSend

4 of 8

Creator

PitchSend logo
PitchSend

Category

Pending

Published

Unknown

Slides

Transcriptions

#1Australia Dean Fradgley, CE Fletcher Building Limited#2Australia Well-established light building products & distribution businesses which have delivered margin improvement with more to come Leading manufacturer of decorative surfaces, plastic pipes, insulation, steel roofing, sheds and doors Distribution business delivers full range plumbing & bathroom products including higher margin own brand Scale in respective markets Margin growth delivered with strong opportunities for further upside Strong, well-known brands Tradelink Olivéri Revenue weighted sector exposure¹ Infrastructure 12% Laminex iplex Fletcher Insulation Building Better, Together Stramit CONSIDER IT DONE Page 84 | Fletcher Building Limited Investor Day Presentation | © June 2023 1. For HY23 Commercial 28% Residential 60%#3Australia's operational disciplines & margin growth has it soundly positioned for this cycle Key financial metrics ROFE¹ c.12% EBIT2 margin EBIT² 2.6% c.5.5% c.$170m $72m FY19 FY23F Non-financial metrics SAFETY CUSTOMER ENVIRONMENT PEOPLE 3.0 26 -20% (TRIFR³) (NPS) (CARBON4) 14 (eNPS) Australia ◉ Attributes # 1 or #2 market position in all businesses Customer strategies to attract new and retain existing customers Performing well in categories that matter Cost competitive against local/international competition Strong pricing & procurement disciplines backed by governance Customer response to digital strategy is strong, delivering higher profits & increased customer retention Own brand & private label delivering margin uplift High vitality evidenced by new products to market Sensible capital investments for growth TRIFR average top quartile across these businesses Page 85 | Fletcher Building Limited Investor Day Presentation | © June 2023 1. ROFE (Return on Funds Employed) calculated based on closing funds; FY23F 2. Before significant items; FY19 is adjusted for proforma IFRS16 and to allow like-for-like comparison 3. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries. YTD23 = 11 months ended 31 May 23 4. Combined Scope 1 & 2 carbon emissions. YTD23 = 12 months ended 31 Mar 23 vs FY18 baseline#4Australia Medium term performance driven by new product development, driving digital & improving customer experience CUSTOMER FOCUS AREAS Ongoing focus on DIFOTIS continues to lift NPS Building out digitally based omni-channel solutions providing customers choice in how they transact with us, attracting and retaining customers Continued investment in new product development that solve customer problems, i.e. higher margin Laminex Surround TM, Fletcher Insulation Firmasoft™ Laminex approaching double digit EBIT margins as we continue to drive performance in digital, decorative categories, backed by a strong vitality index Stramit's performance is growing at pace as we execute strategies in margin accretive categories, i.e. sheds & doors producing higher margin products Tradelink is underperforming and now driving price beyond original plans in light of increasing costs of doing business. Having doubled NPS, the ability to recover price is an opportunity and is now accelerating Page 86 | Fletcher Building Limited Investor Day Presentation | © June 2023#5Australia Building out digitally based solutions: over 35% of Laminex revenue is now online attracting more customers & delivering improved margins Welcome to Digital NPS 49 Laminex TradeHub Login If you don't have a trade account Sign Up By continuing, you agree to Laminex's Terms Of Use and Privacy Policy. "Nice user interface. Easy to navigate and order." Monthly customer use 40% Digital sales of total 35% Digital CAGR 32% New revenue streams driving incremental online sales Laminex digital journey commenced 2019, now largest digital sales in the group accounting for 35% of sales Continuous programme of enhancements to improve customer experience Strong uptake & repetitive user base with 40% of customers transacting online monthly Margin accretive channel Page 87 | Fletcher Building Limited Investor Day Presentation | © June 2023 Note: Digital NPS YTD May 23; Monthly customer use is as at May 23; Digital sales % is FY23F; CAGR is FY20 to FY23F#6Further growth opportunities primarily through organic adjacencies & innovation lifting to 7-8% EBIT margins in the medium term FY24 FY25 FY26 FY27 Australia FY28 Targeted automation investments reducing cost Haven kitchen model distribution maturity to serve Back of wall own brand build out SME 50%+, Retail 15%+ LAMINEX Product expansion to new decorative categories TRADELINK Build out B2B digital offer - mobile app Core DIFOT(IS) 95%+, NPS 40+ STRAMIT Increased manufacturing automation investment Investment in doors expansion OTHER BUSINESSES Iplex investment in latest manufacturing technologies Oliveri expansion into Water Filters Page 88 | Fletcher Building Limited Investor Day Presentation | © June 2023 Fletcher Insulation expansion into decorative solutions Digitally based customer value proposition Fletcher Insulation further expansion of installation offer#7Category focus: Stramit delivering margin accretive sheds & doors segments fair dinkum builds™ Taurean DOOR SYSTEMS Page 89 | Fletcher Building Limited Investor Day Presentation | © June 2023 Australia Driving performance in highest margin categories Stramit is the only roll-forming player with a complete, steel, sheds & door offering Taurean door systems expansion underway with capital allocated to meet future market demands in residential, commercial and own brand shed growth Revenue CAGR three times higher than the Stramit group, highest EBIT margin of all products Fair dinkum builds revenue growth >50% over the past 5 years providing pull through demand from Stramit core and Taurean Door Systems ~30% of Stramit's revenue now comes from builds & doors#8Australia FY23F EBIT growth of c. $50m in a declining market. Well positioned through operational discipline and growth investments to deliver more value over the medium term TTC RESILIENCE MEDIUM TERM PERFORMANCE GROWTH Strong operational disciplines in place, demonstrating our ability to get price TTC with lift in customer metrics Holding margins at 5%+ through pricing disciplines, manufacturing efficiencies & cost control Well-positioned to navigate through forecast market declines in FY24 Relentless obsession to improve customer metrics Digital strategies are strong and continue to attract new and retain existing customers A strong pipeline of accretive category growth plans lifting margins A suite of committed growth investments in vitality, digital, innovation and automation maturing over the medium term TTC resilience with EBIT margin holding above 5% in the near term, well positioned to grow a further 200bps+ over the medium term Page 90 | Fletcher Building Limited Investor Day Presentation | © June 2023

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

Q4 & FY22 - Investor Presentation image

Q4 & FY22 - Investor Presentation

Financial Services

FY23 Results - Investor Presentation image

FY23 Results - Investor Presentation

Financial Services

Ferocious - Plant Growth Optimizer image

Ferocious - Plant Growth Optimizer

Agriculture

Market Outlook and Operational Insights image

Market Outlook and Operational Insights

Metals and Mining

2023 Investor Presentation image

2023 Investor Presentation

Financial

Leveraging EdTech Across 3 Verticals image

Leveraging EdTech Across 3 Verticals

Technology

Axis 2.0 Digital Banking image

Axis 2.0 Digital Banking

Sustainability & Digital Solutions

Capital One’s acquisition of Discover image

Capital One’s acquisition of Discover

Mergers and Acquisitions