Fletcher Building
Half Year Results to 31 December 2020
ROSS TAYLOR - Chief Executive Officer
BEVAN MCKENZIE - Chief Financial Officer
17 February 2021
Fletcher Building Limited
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 provides additional comment on the 2021 Interim Financial Results dated 17 February 2021. As such, it should be read in conjunction with and subject to the explanations and views given in that document. Unless otherwise specified, all information is for the half year ended 31 December 2020.
In certain sections of this presentation, Fletcher Building has chosen to present certain financial information exclusive of the impact of significant items. A number of non-GAAP financial measures are used in this presentation which are used by management to assess the performance of the business and have been derived from Fletcher Building's financial statements for the six months ended 31 December 2020. You should not consider any of these statements in isolation from, or as a substitute for the information provided in the Financial Statements for the six months ended 31 December 2020, which are available atwww.fletcherbuilding.com.
The information in this presentation has been prepared by Fletcher Building with due care and attention, however, neither Fletcher Building nor any of its directors, employees, shareholders nor any other person given any representations or warranties (either express or implied) as to the accuracy or completeness of the information and to the maximum extent permitted by law, no such person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain forward looking statements, that is statements related to future, not past, events or other matters. Forward looking statements may include statements regarding our intent, belief or current expectations in connection with our future operating or financial performance, or market conditions. Such forward looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances. There is no assurance that results contemplated in any of these projections and forward looking statements will be realised. Actual results may differ materially from those projected. Except as required by law, or the rules of any relevant stock exchange or listing authority, no person is under any obligation to update this presentation at any time after its release or to provide further information about Fletcher Building.
The information in this presentation does not constitute financial product, legal, financial, investment, tax or any other advice or a recommendation.
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Fletcher Building Limited Half Year Results Presentation | © February 2021
Agenda | |
1. Results Overview | Ross Taylor |
2. New Zealand Operations | Ross Taylor |
3. Australia Operations | Ross Taylor |
4. Financial Results | Bevan McKenzie |
5. Outlook | Ross Taylor |
Fletcher Building Limited |
Strong HY21 performance 2.5 years into strategy - delivering performance and earnings growth
HY21
➢ Strong earnings growth delivered, efficiency programme embedded and sustainable
➢ Market environment broadly stable
➢ Revenue solid overall: growth in NZ Core and Residential housing
➢ Earnings margins higher in all divisions, driven by operating leverage and efficiencies in line with targets
➢ Strong cash generation and balance sheet
➢ Interim Dividend of 12.0 cents per share, covenant relief retained until end of FY21
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Fletcher Building Limited Half Year Results Presentation | © February 2021
Strong earnings growth, improved profitability and margins
Revenue ($m) | EBIT (before sig items) ($m) |
3,9613,987 323 +1% +47% 219 HY20 HY21 HY20 HY21 |
EBIT Margin1 (%) | Reported Net Earnings($m) |
+260bps 8.1% +48% 121 5.5% 82 HY20 HY21 HY20 HY21 |
HY21 trading highlights
➢ Revenue stable overall: growth in businesses exposed to residential, offset by softer Commercial and AU civil markets and reduced legacy Construction work
➢ Sustainable improvement in profitability across all Divisions ➢ NZ Core EBIT margin1 improvement to 11.3% (from 8.8%) ➢ Australia EBIT margin1 improvement to 3.7% (from 2.4%)
➢ c85% of HY21 EBIT1 growth is from operating efficiency initiatives embedded over past three years
➢ On track to deliver $150m+ p.a. gross cost reduction in FY21
➢ Net Earnings include Significant Items charges of $86m relating to final phase of restructuring costs and Rocla impairment
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1 Before significant items
Fletcher Building Limited Half Year Results Presentation | © February 2021
Note: Measures before significant items are non-GAAP measures used by management to assess the performance of the business and have been derived from Fletcher Building Limited's interim financial statements for the period ended 31 December 2020. Details of significant items can be found in note 2.1 of the interim financial statements
Strong cash flows, net debt reduced
Free Cash Flow1 ($m) | Trading Cash Flow2 ($m) |
516 416 132 (12)HY20 HY21 HY20 HY21 |
Net Debt ($m) | Leverage (Net Debt/EBITDA) |
497 0.7x 269 0.4xFY20 HY21 HY20 3 HY21 |
HY21 trading highlights
➢ Strong cash flows and net debt reduction: driven by earnings growth and tight management of working capital and capex
➢ Gross debt further reduced by $714 million in HY21
➢ Balance sheet remains strong: $1.5bn liquidity, leverage 0.4x
➢ Leverage currently below target range of 1.0x-2.0x: expect to move to lower end of range once investment in WWB plant and legacy construction projects are complete
1 Free cash flow from operations excluding legacy
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Fletcher Building Limited Half Year Results Presentation | © February 2021
2 Excluding legacy and significant items cash flows
3 Due to material impact of FX movements on balance sheet value of debt in recent months, the Group will use hedged value of debt in its leverage calculation - i.e. Net Debt includes impact of CCIRS derivatives. HY20 has been restated for the historic impact of debt hedging on leverage ratio (c0.1x) Note: Measures before significant items are non-GAAP measures used by management to assess the performance of the business
Interim dividend of 12.0 cents per share declared
EPS (before sig items) (cps)
Interim dividendEPS (cps)
➢ Policy to pay dividends in the range of 50% to 75% of net earnings before significant items and having regard to available cash flow1
➢ Interim Dividend of 12.0 cents per share, to be paid on 24 March 2021
➢ Agreement with lenders to retain covenant relief until Jun-21 (previously until Dec-21)
➢ Expect to be in a position to pay a final FY21 dividend
1 Available cash flow = Free cash flow less cash interest
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Fletcher Building Limited Half Year Results Presentation | © February 2021
Continued resolute focus on safety
Safety | |
Total Recordable Injury Frequency Rate 1 10.7 8.5 6.8 6.0 6.4 6.7 6.9 5.7 6.0 5.1 5.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 HY21 | Serious Injuries 2 33 21 20 8 3 FY17 FY18 FY19 FY20 HY21 |
➢ 'Protect' safety programme to realise a future where zero injuries everyday is possible
➢ Current focus is on critical risks, high potentials and resetting culture and behaviours
➢ Serious Injury elimination remains our initial goal
➢ TRIFR target to under 5.0 (well below industry average)
1 TRIFR = Total no. of recorded injuries per million man hours worked. Does not include Restricted Work Injuries
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Fletcher Building Limited Half Year Results Presentation | © February 2021
2 Serious Injury include immediate treatment as an in-patient at hospital for more than 24 hours or immediate treatment for a serious injury or illness as defined by Safe Work Australia
Sustainability
Progress made and improved recognition
Carbon (CO2) Emissions
➢ Current year emissions reflect return to normal activity, follows COVID shutdowns in FY20 and GBC outage in FY19
➢ Verified Science Based Target to reduce Carbon Emissions by 30% by 2030
➢ Achieved significant sustainability milestones which recognise our leadership and the transparency of our ESG reporting ➢ Dow Jones Sustainability™ Asia Pacific Index and DJSI
Australia index inclusion
➢
Improved CDP rating for our approach to managing carbon emissions and climate change - D to B in two years
1 Carbon data excludes emissions from the International division which was divested in FY19
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Fletcher Building Limited Half Year Results Presentation | © February 2021
Agenda | |
1. Results Overview | Ross Taylor |
2. New Zealand Operations | Ross Taylor |
3. Australia Operations | Ross Taylor |
4. Financial Results | Bevan McKenzie |
5. Outlook | Ross Taylor |
Fletcher Building Limited |
New Zealand Market
Residential supportive, solid Infrastructure pipeline, Commercial softer
• NZ Residential is 53% of NZ FB revenue
• HY21 saw solid residential building activity, 3% increase in work put in place and 8% increase in new work consented
• Lag between consenting and FB product sales is 4 - 6 months on average, pointing to robust activity in 2H21
• Positive outlook supported by customer pipelines and PlaceMakers quoting volumes, which are running broadly in line with consents
• NZ Commercial is 22% and NZ Infrastructure is 25% of NZ FB revenue
• Commercial and infrastructure sectors trended slightly lower in HY21
• Outlook for commercial is to continue to trend slightly lower, while Infrastructure has a strong long-term outlook supported by government investments especially roads and water
Source: Statistics NZ, Infometrics
Building Products HY21 results overview
Gross Revenue ($m) | EBIT ($m) |
645 683 101 66 HY20 HY21 HY20 HY21 |
EBIT Margin (%) | Trading cash flow ($m) |
14.8% 152 10.2% 54 HY20 HY21 HY20 HY21 |
Trading performance and operating highlights
➢ Revenue up 6%: good demand from residential finishing trades and subdivision work, plus share gains and improved pricing disciplines
➢ EBIT up 53% due to margin improvement of 460bps: operating efficiency and better contribution from Steel and Pipes
➢ Strong cash flows from working capital control, esp. Steel; some inventory rebuild expected in 2H21
➢ Operational highlights:
➢ Expansion into new segments and categories, e.g. Pipes businesses into the electrical space
➢ Increased market share in several businesses as customers show preference for NZ made product
➢ Focus on Pipes and Steel businesses delivering improvement
➢ WWB plant build progressing to plan
Distribution
HY21 results overview
Gross Revenue ($m) | EBIT ($m) |
824 852 60 50 HY20 HY21 HY20 HY21 |
EBIT Margin (%) | Trading cash flow ($m) |
7.0% 68 64 6.1% HY20 HY21 HY20 HY21 |
Trading performance and operating highlights
➢ Revenue up 3%: good demand from residential trades and consumer segments, partly offset by softer commercial sector
➢ EBIT up 20% with margin improvement of 90bps: efficiency initiatives more than offsetting competitive pressure on price
➢ Trading cash flow solid on good working capital management, some inventory build in HY21 to ensure availability of key stock lines
➢ Operational highlights:
➢ Digital: PlaceMakers Trade Portal and consumer ecommerce and click & collect sites released
➢ PlaceMakers transport management system now live across branch network, track and trace from initial order to delivery
➢ Regional Hub structure now live in Auckland and Christchurch
Concrete
HY21 results overview
Gross Revenue ($m) | EBIT1 ($m) |
403 430 62 49 HY20 HY21 HY20 HY21 |
EBIT Margin1 (%) | Trading cash flow ($m) |
14.4% 88 12.2% 49 HY20 HY21 HY20 HY21 |
Trading performance and operating highlights
➢ Revenue up 7%: robust demand across all key segments, share gains in cement, improved pricing in ready-mix and aggregates
➢ EBIT up 27% through margin improvement of 220bps: manufacturing and supply chain efficiency, partly offset by costs to prepare GBC Tyre Derived Fuel project
➢ Strong cash conversion, expect some inventory rebuild in 2H21
➢ Operational highlights:
➢ Tyre Derived Fuel project: commissioning to commence in Feb-21
➢ Sustained focus on carbon reduction: trial batch of pozzolanic cement produced, commercial testing underway
1 Before significant items
NZ Core (Building Products, Distribution, Concrete)
Improvement driven by solid volumes, pricing, lower costs
1 Before significant items
2 HY18 and HY19 adjusted for IFRS16 to be like-for-like with HY20 and HY21
Residential and Development HY21 results overview
Gross Revenue ($m) | EBIT ($m) |
62 356 35 224 HY20 HY21 HY20 HY21 |
EBIT Margin (%) | Trading cash flow ($m) |
17.4% 15.6% 112 35 HY20 HY21 HY20 HY21 |
Trading performance and operating highlights
➢ Revenue up 59%: unit sales increased to 515 (vs. 293 in HY20) on strong demand in both Auckland and Christchurch; average price of units sold 5% higher
➢ EBIT up 77%: strong volumes and favourable mix in typologies sold
➢ Cash flow strong on high sales volumes and reduction in housing stock levels, inventory rebuild likely in 2H21
➢ Operational highlights:
➢ Strong pipeline of c3,600 future lots under control, of which c900 for delivery in FY22
➢ Clever Core panelised volumes ramping up (34 in HY21), sales to third parties targeted for FY22
➢ Dedicated apartments team established to scale this business
Residential and Development
Residential earnings weighted to first half, Land Dev't mainly second half
Residential & Development EBIT: HY20 to HY21 ($m)
➢ Residential:
➢ Uplift in HY21 earnings driven by strong housing volumes, including c100 in Q121 relating to sales made in FY20
➢
Targeting c800 house sales in FY21 (of which 515 in HY21): hence Residential earnings will be weighted to HY21
➢
Land Development:
➢ Two major transactions planned for second half of FY21: Crane Copper Tube Sydney site (delayed from FY20) and Rocla Brisbane site
➢ Expect c$40m EBIT in FY21, higher than usual $25m p.a. EBIT run-rate
➢ Sale of Rocla Sydney site on track for FY22
HY21 results overview
Gross Revenue ($m) | EBIT1 ($m) |
774 651 14 13 HY20 HY21 HY20 HY21 |
EBIT Margin1 (%) | Trading cash flow ($m) |
2.0% 1.8% (80)HY20 HY21 (152) HY20 HY21 |
Trading performance and focus areas
➢ Revenue down 16%: solely due to reduced revenue on legacy projects, remainder of division stable YOY
➢ EBIT steady: improved earnings and margins from Higgins and Brian Perry
➢ Cash flow improvement reflects reduced legacy cash outflows, and better performance in remainder of division (from $10m inflow in HY20 to $30m inflow in HY21)
➢ Operational Highlights:
➢ Continued rebuild of forward order book (see slide 19)
➢ Legacy: Commercial Bay and Grey Base Hospital handed over to client, work on infrastructure projects in line with revised completion dates post-COVID-19
➢ Ongoing deployment of 'Fletcher One' - standardised governance and management framework
1 Before significant items
Continue to reshape order book
Work to Complete ($b)
Profile of Forward Work
➢ c80% of forward order book (excl. legacy) is lower-risk forms of contract: alliances, national and local maintenance contracts, and cost-plus / measure & value
➢ Projects under exclusive negotiation include preferred status on AMETI busway alliance
➢ Order book includes robust pipeline for FY22 and beyond:
➢ c$0.4b in 2H21
➢ c$0.8b in FY22
➢ c$2.0b in FY23+ (includes 10 year Watercare contract)
➢ Targeting 3-5% EBIT margin on secured forward order book and work won in-year
Agenda | |
1. Results Overview | Ross Taylor |
2. New Zealand Operations | Ross Taylor |
3. Australia Operations | Ross Taylor |
4. Financial Results | Bevan McKenzie |
5. Outlook | Ross Taylor |
Fletcher Building Limited |
Market outlook
Australia residential solid with softer commercial and infrastructure
• AU Residential is 60% of FB AU revenue
• HY21 saw robust activity in detached housing and renovations, offset by apartments sector
• Positive outlook with 13% increase in approvals supported by macro factors including low interest rates and government stimulus
• AU Commercial is 28% and AU Infrastructure is 12% of FB AU revenue
• HY21 saw slowdown in commercial segment with infrastructure segment seeing delays in major projects in key sectors for pipes businesses, notably water and gas
• Outlook for commercial and key civil sectors is for ongoing softer activity in near-term
Source: BIS Oxford, ABS
HY21 results overview
Gross Revenue ($m) | EBIT1 ($m) |
1,453 51 1,390 35 HY20 HY21 HY20 HY21 |
EBIT Margin1 (%) | Trading cash flow ($m) |
3.7% 52 2.4%HY20 HY21 (64) HY20 HY21 |
Trading performance and operating highlights
➢ Revenue down 4%: Pipes businesses down 25% in subdued civil market; remainder of division steady on balance of solid residential demand and softer commercial
➢ EBIT up 46% with 130bps margin improvement: efficiency programme embedded; $6m benefit from lower depreciation on Rocla (held for sale)
➢ Trading cash flow driven by material improvements in inventory and debtors management
➢ Operational highlights:
➢ Tradelink sales in key SME segment +4% YOY, and own brand penetration now >25% of front of wall sales
➢ Laminex digital sales now 27% of all transactions
➢ Insulation fully consolidated onto single manufacturing site
➢ Stramit share growth in higher-margin sheds segment
1 Before significant items
Material benefits from cost-out, partly offset by impact of pipes market
Agenda | |
1. Results Overview | Ross Taylor |
2. New Zealand Operations | Ross Taylor |
3. Australia Operations | Ross Taylor |
4. Financial Results | Bevan McKenzie |
5. Outlook | Ross Taylor |
Fletcher Building Limited |
Income statement
Strong result, first half EBIT before significant items ahead of guidance
Dec 2019 | Dec 2020 | Change | |
NZ$m | 6 months | 6 months | % |
Revenue | 3,961 | 3,987 | 1% |
EBITDA | 402 | 503 | 25% |
EBIT before significant items | 219 | 323 | 47% |
Significant items | (35) | (86) | (146%) |
EBIT | 184 | 237 | 29% |
Lease interest expense | (35) | (33) | 6% |
Funding costs | (35) | (23) | 34% |
Tax expense | (28) | (57) | (104%) |
Non-controlling interests | (4) | (3) | 25% |
Net earnings | 82 | 121 | 48% |
Basic earnings per share (cents) | 9.8 | 14.7 | 4.9cps |
Dividends per share (cents) | 0.0 | 12.0 | 12.0cps |
HY21 EBIT
Improvement underpinned by operating leverage on lower cost base
1 Before significant items.
Significant items
Restructuring costs lower than prior forecast, Rocla impaired
FY21 significant items (Profit and Loss Charges)
NZ$mFY21 Prior forecastHY21
2H21
FY21 Updated
Restructuring Rocla Impairment
90 -35 51
c30 -c65 51
FY21 significant items (Cash Flow)
NZ$mFY21
Prior forecast HY21 2H21
FY21 Updated
Restructuring
143
54
c40
c95
➢ HY21 charges mainly related to Iplex AU site closures
➢ 2H21 charges are final phase of restructuring, lower than forecast due to improved market environment
➢ Cash costs materially lower due to reduced restructuring activity and improved outcomes of site exits
➢ Sustainable annual gross cost benefits of $150m+ represents rapid payback on cash costs
➢ Rocla impairment reflects updated assessment of likely disposal proceeds; excludes reclassification of Foreign Currency Translation Reserve loss (taken on disposal, cNZD30m)
Cash flow
Strong half year trading and controlled working capital
Dec 2020 | Change | ||
NZ$m | 6 months | 6 months | $m |
EBIT before significant items | 219 | 323 | 104 |
Depreciation and amortisation | 183 | 180 | (3) |
Lease principal payments and lease interest paid | (119) | (124) | (5) |
Provisions and other | (5) | 19 | 24 |
Trading cash flow before working capital movements | 278 | 398 | 120 |
Working capital movements | (146) | 118 | 264 |
Trading cash flow excluding legacy projects and significant items | 132 | 516 | 384 |
Legacy projects cash flow | (162) | (109) | 53 |
Significant items cash flow | (24) | (34) | (10) |
Trading cash flow | (54) | 373 | 427 |
Add: Lease principal payments | 84 | 91 | 7 |
Less: cash tax paid | (1) | (3) | (2) |
Less: funding costs paid | (34) | (33) | 1 |
Cash flows from operating activities | (5) | 428 | 433 |
Free Cash Flow1 excluding legacy projects | (12) | 416 | 428 |
Dec 2019
Note: Legacy Construction cash flow includes Building and Infrastructure projects Free Cash Flow = Trading cash flow less capex less cash tax, excluding M+A activities
Working capital
Well positioned, some inventory rebuild expected in 2H21
Cash flow working capital movements |
NZ$m |
Residential and Development |
Construction excluding legacy projects |
Materials and Distribution Divisions: |
Dec 2019 | Dec 2020 | Change | |
6 months | 6 months | $m | |
- | 50 | 50 | |
(15) | 6 | 21 | |
92 | 64 | (28) | |
(34) | 42 | 76 | |
(189) | (44) | 145 | |
Cash flow working capital movements excluding legacy | (146) | 118 | 264 |
As at | As at | Change | |
Key working capital metrics (days) | Dec 2019 | Dec 2020 | (days) |
Debtor Days | 44.0 | 39.7 | 4.3 |
Inventory Days | 75.5 | 69.8 | 5.7 |
Payables Days | 41.6 | 39.2 | (2.4) |
Materials and Distribution Total Cycle | 77.9 | 70.3 | 7.6 |
Capital expenditure
Balanced between maintenance and strategic investment
HY21 Capex (NZ$m)
NZ$m
26 31 9 16
Total
82
➢ Capex programme focused on maintenance as well as enabling investments for strategy, especially digital, manufacturing efficiency and sustainability
➢ c70% maintenance / c30% growth in HY21
➢ FY21 capex c$200m, includes c$50m for WWB plant
➢ Expect c$200-$250m annual capex ex WWB going forward
➢ WWB capex remaining: c$220m FY22, c$100m FY23
Net debt
Reduction through strong trading cash flows
1 Other is comprised of Minority distribution of $27m, Hedging/FX on debt of $8m, repurchase of treasury stock $7m and make whole adjustment of $2m
Leverage
Targeting lower end of 1.0x-2.0x range
➢ Leverage ratio (Net Debt / EBITDA) below target range of 1.0x-2.0x following strong cash flow performance
➢ Expect to move to lower end of target range over FY22-FY23 with remaining investment of c$400m in WWB plant and legacy construction cash flows
➢ Continued preference for conservative balance sheet metrics
1 Due to material impact of FX movements on balance sheet value of debt in recent months, the Group will use hedged value of debt in its leverage calculation - i.e. Net Debt includes impact of CCIRS derivatives. HY20 has been restated for the historic impact of debt hedging on leverage ratio (c0.1x)
Funding
Strong funding profile and liquidity position
NZ$m | Facilities 31 Dec 20 | Drawings 31 Dec 20 |
Syndicate | 925 | - |
USPP | 459 | 459 |
Capital Notes | 406 | 406 |
Other | 22 | 22 |
Total | 1,812 | 887 |
➢ Undrawn credit lines of $925m and cash on hand of $618m as at 31
Dec-20 - total liquidity of $1.5bn
➢ $714m gross debt repaid in HY21, including $350m USPP in Jul-20
Dividend
Interim dividend of 12.0 cents per share to be paid in March
Interim dividend (cps)
➢ Interim Dividend of 12.0 cents per share, to be paid on 24 March 2021
➢ 50% pay-out ratio1
➢ In Jun-20, FB announced amendments to its banking agreements enabling the Company to rely on more favourable covenant levels from Jun-20 to Dec-21 (inclusive) if required
➢ The Company agreed that it would not pay a dividend until it returns to compliance with, and agrees to be tested by, its normal covenant levels
➢ In Feb-21, given the strong HY21 performance and balance sheet, the Company reached an updated agreement with lenders to allow payment of an Interim Dividend and to retain the more favourable covenant levels until Jun-21 (inclusive). Normal covenant levels resume from Jul-21
➢ Interim Dividend unimputed for NZ taxation purposes and unfranked for AU taxation purposes; Dividend Reinvestment Plan will not be operative for this dividend
➢ Expect to be in a position to pay a final FY21 dividend
1 Pay-out ratio is expressed as a percentage of Net Earnings excluding Significant Items.
Summary 2.5 years into strategy - on track to deliver financial targets
Cost Reset and Margin
➢ On track to deliver slightly ahead of targeted $150m gross fixed cost reduction in FY21
➢ Cost reset driven by headcount, freight, utilities, plant, machinery & vehicles and property consolidation
➢ Group EBIT margin improved 2.6ppt in HY21
➢ Continuing to target Group EBIT margin >10% in FY23
➢ On track to deliver ROFE1 of 15% in FY21 well ahead of FY23 target
Cash Flow & Capex
➢ Strong trading cash flows underpinned by margin performance and ongoing working capital management
➢ Working capital cycle reduced from 82 days to 70 days since Dec-18
➢ Expect some working capital rebuild in 2H21 in NZ Core, c$25-50m above normal seasonality
➢ Capex sensibly reduced to c$200m in FY21, while maintaining key investments
➢ Capex from FY22 expected to be $200-$250m (ex WWB)
Capital Structure
➢ $1.5b liquidity
➢ 0.4x leverage ratio, targeting lower end of 1.0x-2.0x range (accounting for WWB and legacy projects)
➢ Gross debt reduced by $1.1bn since Jun-18
➢ Funding costs reduced from $157m in FY18 to c$55m in FY21
➢ Strong tenor in funding lines
➢ Continued covenant protection to Jun-21
➢ Interim Dividend of 12.0 cents per share
1 Return On Funds Employed
Agenda | |
1. Results Overview | Ross Taylor |
2. New Zealand Operations | Ross Taylor |
3. Australia Operations | Ross Taylor |
4. Financial Results | Bevan McKenzie |
5. Outlook | Ross Taylor |
Fletcher Building Limited |
Second half FY21 outlook
➢ | Current indicators point to second half core volumes in NZ and Australia remaining at similar levels to those seen in the first half, | |
with robust ongoing demand for residential housing in NZ | ||
Market | ➢ | January and early February trading has seen a slightly slower ramp-up post the New Year break |
outlook | ||
➢ | Managing some supply chain disruption; remains key to meeting market demand | |
➢ | Market outlook assumes no material impact from COVID-19 | |
➢ | FY21 EBIT before significant items expected to be in a range of $610 to $660 million | |
➢ | Strong first quarter in NZ Core and Residential housing means Group earnings less H2 weighted than previously | |
Earnings | ||
➢ | Efficiency benefits broadly steady between H1 and H2 | |
➢ | Key driver within the guidance range will be 2H21 market volumes in NZ and AU core divisions | |
➢ | Further update on market activity and trading performance will be provided at the investor day in May |
Appendix
Fletcher Building Limited
Divisional revenue exposure and FB revenue by market
Divisional Revenue Exposure by Sector
Building Products
Resi, 46% | Com, 26% | Infra, 28% |
Distribution
Resi, 81% | Com, 19% |
Concrete
Resi, 52% | Com, 21% | Infra, 27% |
Australia
Resi, 60% | Com, 28% | Infra, 12% |
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Disclaimer
Fletcher Building Ltd. published this content on 16 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2021 21:57:06 UTC.