Fletcher Building FY21 Half Year Results and Dividend
Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
Fletcher Building announces FY21 half year results and dividend
Auckland, 17 February 2021: Fletcher Building today announced its results for the first half of
FY21.
Summary:
➢ Revenue of $3,987 million, up 1% from $3,961 million in HY20
➢ EBIT before significant items of $323 million, up 47% from $219 million in HY20
➢ Net Profit After Tax of $121 million, up 48% from $82 million in HY20
➢ Strong cash flows from operating activities of $428 million; strong balance sheet
➢ Interim dividend of 12 cents per share declared, to be paid on 24 March 2021
➢ FY21 EBIT before significant items guidance range $610 million to $660 million
Fletcher Building Chief executive Ross Taylor said: “Our strong HY21 results reflect good progress
made on our strategy to drive consistent performance and growth. The improved earnings and
profitability are the outcome of initiatives undertaken over the past three years to improve
operating disciplines and efficiencies across the Group.
“Group revenue was $3,987 million, up 1% on HY20. EBIT before significant items was $323
million, up 47% from $219 million. Group cash flows from operating activities of $428 million were
significantly higher than the $5 million outflow in the prior period, resulting from a higher EBIT
and a material improvement in working capital. Group EBIT margins improved to 8.1% from
5.5%, with improvement across all operating divisions.
“We have seen a broadly stable market environment. Growth in the New Zealand residential
sector has been offset by softer demand in Commercial and mixed conditions in infrastructure in
both New Zealand and Australia. In all businesses, we have remained focused on executing our
strategy, especially improving the underlying disciplines and efficiencies of our operations. The
sustainable improvement in margins was achieved through pricing disciplines; targeted share
gains; consolidation and automation of manufacturing and supply chains; and a more efficient
overhead cost base.
“Overall, market factors – volume, share and price – contributed 15% of the Group’s increased
EBIT while around 85% was the result of strategic improvements in operating efficiency.
P a g e | 2
“The Board is pleased to declare an interim dividend of 12 cents per share. Given the strength of
the Group’s performance and balance sheet, the Company has been able to put in place an
updated banking agreement with its lenders which allows the Company to pay an interim
dividend and retains the more favourable covenant levels until Jun 2021. The Board also expects
to be in a position to approve a final FY21 dividend.
“Current indicators point to core volumes in NZ and Australia remaining at present levels through
the second half, with robust demand for Residential housing in NZ. This market outlook assumes
no material impact from COVID-19.
Overall, we expect FY21 Group EBIT (excluding significant items) to be in the range of $610 to
$660 million.”
#Ends
Authorised by
Chris Reid
Company Secretary
For further information please contact:
MEDIA
Christian May
General Manager – Corporate Affairs
+64 21 305 398
Christian.May@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com
---
Fletcher Building Limited
Fletcher Building
Half Year Results to
31 December 2020
MEDIA PRESENTATION
17 February 2021
Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothisdocumentandthe
verbalorwrittencommentsofanypersonpresentingit.
Thispresentationprovidesadditionalcommentonthe2021InterimFinancialResultsdated17February2021.Assuch,itshouldbereadinconjunctionwithandsubjecttotheexplanationsand
viewsgiveninthatdocument.Unlessotherwisespecified,allinformationisforthehalfyearended31December2020.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems.Anumberofnon-GAAPfinancial
measuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancialstatementsforthesix
monthsended31December2020.Youshouldnotconsideranyofthesestatementsinisolationfrom,orasasubstitutefortheinformationprovidedintheFinancialStatementsforthesix
monthsended31December2020,whichareavailableatwww.fletcherbuilding.com.
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2
Fletcher Building Limited Half Year Results Presentation | © February 2021
Strong HY21 performance
2.5 years into strategy -delivering performance and earnings growth
➢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
HY21
FY2021
PERFORMANCE
AND GROWTH
3
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢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 margin
1
improvement to 11.3% (from 8.8%)
➢Australia EBIT margin
1
improvement to 3.7% (from 2.4%)
➢c85% of HY21 EBIT
1
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 $86m relating to
final phase of restructuring costs and Rocla impairment
HY21 results at a glance
Strong earnings growth, improved profitability and margins
4
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT (before sig items) ($m)
EBIT Margin
1
(%)
5.5%
8.1%
HY20HY21
3,961
3,987
HY20HY21
219
323
HY20HY21
Revenue ($m)
82
121
HY20HY21
Reported Net Earnings($m)
HY21 trading highlights
+1%
+48%
+47%
1
Before significant items
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
+260bps
HY21 results at a glance
Strong cash flows, net debt reduced
5
Fletcher Building Limited Half Year Results Presentation | © February 2021
Trading Cash Flow
2
($m)
Net Debt ($m)
497
269
FY20HY21
➢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: $1.5bn liquidity, leverage 0.4x
➢Leverage currently below target range of 1.0x-2.0x: expect to move
to lower end of range once investment in WWB plant and legacy
construction projects are complete
(12)
416
HY20HY21
132
516
HY20HY21
Free Cash Flow
1
($m)
Leverage (Net Debt/EBITDA)
HY21 trading highlights
1
Free cash flow from operations excluding legacy
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
0.7x
0.4x
HY20HY21
3
HY21 results at a glance
Interim dividend of 12.0 cents per share declared
6
12.8
23.7
HY20HY21
Fletcher Building Limited Half Year Results Presentation | © February 2021
Interim dividend
+85%
1
Available cash flow = Free cash flow less cash interest
➢Policy to pay dividends in the range of 50%
to 75% of net earnings before significant
items and having regard to available cash
flow
1
➢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
EPS (cps)
EPS (before sig items) (cps)
9.8
14.7
HY20HY21
+50%
12.0cps
HY20: nil
Continued resolute focus on safety
7
Serious Injuries
2
Total Recordable Injury
Frequency Rate
1
Safety
1
TRIFR = Total no. of recorded injuries per million man hours worked. Does not include Restricted Work Injuries
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
10.7
8.5
6.8
6.0
6.4
6.7
6.9
5.1
5.0
5.7
6.0
FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20HY21
33
21
20
8
3
FY17FY18FY19FY20HY21
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢‘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)
Sustainability
Progress made and improved recognition
8
Carbon (CO
2
) Emissions
1,238
1,147
1,132
603
FY18FY19FY20HY21
(thousand Tonnes)
1
1
Carbon data excludes emissions from the International division which was divested in FY19
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢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
9
Fletcher Building Limited Half Year Results Presentation | © February 2021
Building Products, Distribution and Concrete Performance Summary
Revenue:
$1,965m
HY20: $1872m
EBIT
1
:
$223m
HY20: $165m
Margin
1
:
11.3%
HY20: 8.8%
➢Good demand for Building Products in
residential finishing trades and subdivision
work, plus share gains and improved pricing
disciplines
➢Better contribution from Steel and Pipes
➢Efficiency initiatives in Distribution more
than offsetting competitive pressure on price
➢Concrete division showing robust demand
➢Market share gains on customer preference
for NZ made products
➢WWB plant build progressing to plan
➢PlaceMakers Trade Portal and consumer
ecommerce and click & collect sites released
➢Tyre Derived Fuel project: commissioning to
commence in Feb-21
1
Before significant items
1010
Fletcher Building Limited Half Year Results Presentation | © February 2021
Residential and Development Performance Summary
Revenue:
$356m
HY20: $224m
EBIT:
$62m
HY20: $35m
Margin:
17.4%
HY20: 15.6%
➢Unit sales increased to 515 (vs. 293 in HY20)
on strong demand in both Auckland and
Christchurch
➢Average price of units sold 5% higher
➢Strong volumes and favourable mix in
typologies sold
➢Clever Core panelised volumes ramping up,
sales to third parties targeted for FY22
➢Dedicated apartments team established to
scale this business
➢Strong pipeline of c3,600 future lots; 900 for
delivery in FY22
1111
1
Before significant items
Fletcher Building Limited Half Year Results Presentation | © February 2021
Construction Performance Summary
Revenue:
$651m
HY20: $774m
EBIT
1
:
$13m
HY20: $14m
Margin
1
:
2.0%
HY20: 1.8%
➢Revenue down solely due to reduced
revenue on legacy projects, remainder of
division stable YOY
➢Improved earnings and margins from Higgins
and Brian Perry Civil
➢Continued rebuild of forward order book
with improved risk profile and margin
➢Legacy: Commercial Bay and Grey Base
Hospital handed over to client, work on
infrastructure projects in line with revised
completion dates post-COVID-19
1212
1
Before significant items
Fletcher Building Limited Half Year Results Presentation | © February 2021
Australia Performance Summary
Revenue:
$1,390m
HY20: $1,453m
EBIT
1
:
$51m
HY20: $35m
Margin
1
:
3.7%
HY20: 2.4%
➢Revenue down 4%: Pipes businesses down
25% in subdued civil market; remainder of
division steady on balance of robust
residential demand and softer commercial
➢EBIT up 46% due to 130bps margin
improvement: efficiency and cost-out
program embedded
➢Laminex digital sales now 27% of all
transactions
➢Tradelink SME sales +4% YOY
3.1
3.3
HY20HY21
New Zealand Market
Residential supportive, solid Infrastructure pipeline, Commercial softer
13
Fletcher Building Limited Half Year Results Presentation | © February 2021
•NZ Residential is 53% of NZ FB revenue
•HY21 saw solid residential building activity, 3% increase in work put
in place and 8% increase in new work consented
•Lag between consenting and FB product sales is 4 –6 months on
average, pointing to robust activity in 2H21
•Positive outlook supported by customer pipelines and PlaceMakers
quoting volumes, which are running broadly in line with consents
•NZ Commercial is 22% and NZ Infrastructure is 25% of NZ FB revenue
•Commercial and infrastructure sectors trended slightly lower in HY21
•Outlook for commercial is to continue to trend slightly lower, while
Infrastructure has a strong long-term outlook supported by
government investments especially roads and water
Source: Statistics NZ, Infometrics
NZ Residential
NZ Commercial Work Put in Place ($b)
4.8
4.6
HY20HY21F
Floor Area Consented (Mm
2
)
8.3
8.5
HY20HY21F
+3%
+8%
Work Put in Place ($b)
-5%
Market outlook
Australia residential solid with softer commercial and infrastructure
14
Fletcher Building Limited Half Year Results Presentation | © February 2021
AU Residential
AU Commercial Work Done (A$b)
•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
Approvals (#)
-5%
37.9
36.2
HY20HY21F
25.4
23.4
HY20HY21F
87k
99k
HY20HY21
+13%
Source: BIS Oxford, ABS
Work Done (A$b)
-8%
Second half FY21 outlook
15
➢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
➢January and early February trading has seen a slightly slower ramp-up post the New Year break
➢Managing some supply chain disruption; remains key to meeting market demand
➢Market outlook assumes no material impact from COVID-19
Earnings
Market
outlook
➢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
➢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
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢Further update on market activity and trading performance will be provided at the investor day in May
Fletcher Building Limited
Questions?
---
Results Announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer Fletcher Building Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$4,367,000 1%
Total Revenue $3,987,000 1%
Net profit/(loss) from continuing
operations
$121,000 48%
Total net profit/(loss) $121,000 48%
Interim Dividend
Amount per Quoted Equity
Security
$0.12
Imputed amount per Quoted
Equity Security
N/A
Record Date 25 February 2021
Dividend Payment Date 24 March 2021
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$3.00 $3.19
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Difference between Revenue from continuing operations and Total revenue is
attributed to intercompany sales where Total Revenue excludes the
intercompany amounts.
Authority for this announcement
Name of person authorised to
make this announcement
Chris Reid, Company Secretary
Contact person for this
announcement
Aleida White, Head of Investor Relations
Contact phone number +64 21 155 8837
Contact email address investor.relations@fbu.com
Date of release through MAP 17/02/2021
Unaudited financial statements accompany this announcement.
---
Fletcher Building Limited
2021 Interim Financial Results
When used in these Interim Financial Results, references to the ‘Company’ are references
to Fletcher Building Limited. References to ‘Fletcher Building’ or the ‘Group’ are to Fletcher
Building Limited, together with its subsidiaries and its interests in associates and joint
ventures. References to $ and NZ$ are to New Zealand dollars unless otherwise stated.
Contents
Fletcher Building Limited 2021 Interim Financial Results1
We are pleased to report Fletcher Building’s
results for the six months ended 31 December
2020, which reflect progress made on our
strategy to drive consistent performance and
growth. The improved earnings and profitability
in HY21 are the result of initiatives undertaken
over the past three years to improve operating
disciplines and efficiencies across the Group.
The Board is also pleased to approve an interim
dividend of 12 cents per share.
HY21 RESULTS
Group revenue was solid overall at $3,987 million, up 1% on the prior
period. Group EBIT before significant items was $323 million, up
47% from $219 million in the prior period and slightly ahead of the
HY21 guidance range of $305 to $320 million. Group EBIT margin
excluding significant items improved to 8.1% from 5.5%, and
Net Earnings of $121 million were up 48% from $82 million in
the prior period.
In HY21, we have seen a broadly stable market environment.
The New Zealand residential sector trended slightly higher, while
demand in Commercial was softer and conditions in Infrastructure
were mixed across both New Zealand and Australia. Against
this backdrop, revenue increased in our New Zealand Core and
Residential businesses, partly offset by reduced revenues in the
Australian pipes sector and on the Construction legacy projects.
In all businesses, we have remained focused on executing
the strategy laid out three years ago, especially improving the
underlying disciplines and efficiencies of our operations. Pleasingly,
EBIT margins in HY21 were higher in all operating divisions,
reflecting: improved pricing disciplines; targeted share gains in
certain categories; consolidation and automation of manufacturing
and supply chains; and a more efficient overhead cost base.
Significant items of $86 million in the period comprised $35 million
for the final phase of the Group’s restructuring activities being
undertaken in FY21, and $51 million for an impairment to the
carrying value of the Rocla business in Australia, which is currently
being divested.
STRONG BALANCE SHEET AND CASH FLOW
Group cash flows from operating activities of $428 million were
significantly higher than the $5 million outflow in the prior period,
resulting from higher EBIT and a material improvement in working
capital. Capital expenditure of $82 million in HY21 was in line with
previously signalled levels and included $31 million for the new
Winstone Wallboards facility.
The Group’s balance sheet and funding profile remains strong. As
previously announced, the Group repaid its most expensive tranche
of USPP debt on 29 July 2020, and gross debt was reduced overall
by $714 million in the half. The Group now has $1,812 million in
available funding, of which $925 million is undrawn, and $618
million cash on hand. The Group’s liquidity is $1.5 billion.
HEALTH AND SAFETY
Our multi-year safety programme Protect continues. This is based
on the belief that all injuries are preventable and we are working
towards a future where zero injuries every day is possible. Our
current focus is on critical risks and refining behaviours. We
continue to encourage reporting of all injuries and near misses
to reduce the potential for serious injuries later on. Our Total
Recordable Injury Frequency Rate (TRIFR) has trended down over
10 years and ended the half year at 6.0. Our target remains to
continue to drive this under 5.0 which is well below the industry
average. Serious injuries were three for the half year compared to
eight in FY20.
SUSTAINABILITY
Delivering on our sustainability strategy is a key priority and will
be a driver of long-term success for Fletcher Building. It is clear
to us that the building and materials sector needs to shift the way
it designs, builds and sources the building materials used in the
construction process.
While we are investing to ensure a sustainable future for our whole
business, we have a particular focus on Golden Bay Cement (GBC),
which is our most significant carbon emitter. In HY21, we produced
our first trial batch of lower-carbon pozzolanic cement and have
begun commercial testing. We are also commissioning our Tyre
Derived Fuel facility in GBC, which will use waste tyres to reduce
coal use and increase biofuel use to 45%.
We recently achieved two significant sustainability milestones
which recognise the transparency of our social, environmental
and governance reporting. We were included in the Dow Jones
Sustainability Asia Pacific Index for the first time as the only new
entry from New Zealand. We are one of only 16 companies from
our sector to make the index and one of only four companies from
any industry in New Zealand. We also received a B rating from the
CDP for our approach to managing carbon emissions and climate
change. This was an improvement of two ratings in two years.
Chair and
CEO's Review
Fletcher Building Limited 2021 Interim Financial Results2
IHUMA
-
TAO
In December, Fletcher Building reached an agreement to sell the
land it owns at O
-
ruarangi Road, commonly known as Ihuma
-
tao to
the New Zealand Government for $29.9 million. At the agreed sale
price, the deal will be broadly breakeven for Fletcher Building. This
is a positive solution for all stakeholder groups.
DIVIDEND
The Board is pleased to approve an interim dividend of 12 cents per
share for the six months ended 31 December 2020 to be paid on
24 March 2021. Given the strength of the Group’s performance and
balance sheet, the Group has been able to put in place an updated
banking agreement with its lenders which allows the Company
to pay an interim dividend and retain more favourable covenant
levels until June 2021. The Board also expects to be in a position
to approve a final FY21 dividend. The dividend reinvestment plan
will not be operative for the interim dividend, and there are no New
Zealand imputation credits or Australian franking credits attached to
the interim dividend.
GUIDANCE
Current indicators point to core volumes in New Zealand and
Australia remaining at current levels in the second half, with robust
demand for residential housing in New Zealand. This market outlook
assumes no material impact from COVID-19.
We expect that efficiency benefits will be broadly stable between
1H21 and 2H21, while a strong first quarter of trading in the New
Zealand Core divisions and Residential housing means Group
earnings will be less second half weighted than previously.
Overall, we expect FY21 Group EBIT (excluding significant items) to
be in the range of $610 to $660 million.
We look forward to the second half of the year and to sharing the
full year results in August.
Chair and CEO's Review (Continued)
Fletcher Building Limited 2021 Interim Financial Results3
Reported results
NZ$m (except where noted)
Six months ended
31 December
2020
Six months ended
31 December
2019Change %
Total revenue3,9873,9611%
Operating earnings before significant items
(1)
32321947%
Significant items
(1)
(86)(35)(146%)
Operating earnings (EBIT) 23718429%
Lease interest expense(33)(35)6%
Funding costs(23)(35)34%
Earnings before tax 18111 459%
Tax expense(57)(28)(104%)
Earnings after tax 1248644%
Non-controlling interests(3)(4)25%
Net earnings1218248%
Net earnings before significant items19510782%
Basic earnings per share (cents) 14.7 9.850%
Basic earnings per share before significant items (cents) 23.7 12.885%
Dividends per share (cents)12NM
Cash flows from operating activities428(5)NM
Capital expenditure8211931%
(1)
Operating earnings (EBIT) before significant items is a non-GAAP measure used by management to assess the performance of the business and has 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.
Group
Performance
Fletcher Building Limited 2021 Interim Financial Results4
Revenue
NZ$m
Six months ended
31 December
2020
Six months ended
31 December
2019Change %
Building Products6836456%
Distribution8528243%
Concrete4304037%
Residential and Development35622459%
Construction6517 74(16%)
Australia1,3901,453(4%)
Other55
Group4,3674,3281%
Less: intercompany sales(380)(367)4%
External revenue3,9873,9611%
EBIT EBIT before significant items
(1)
NZ$m
Six months
ended
31 December
2020
Six months
ended
31 December
2019Change %
Six months
ended
31 December
2020
Six months
ended
31 December
2019Change %
Building Products1016653% 1016653%
Distribution605020% 605020%
Concrete674937% 624927%
Residential and Development623577% 623577%
Construction1214(14%)1314(7%)
Australia(36)NM513546%
Corporate(29)(30)3% (26)(30)13%
Total23718429% 32321947%
Lease interest expense(33)(35)6% (33)(35)6%
Funding costs(23)(35)34% (23)(35)34%
Earnings before tax18111 459% 26714979%
Tax expense(57)(28)(104%)(69)(38)(82%)
Earnings after tax1248644% 19811178%
Non-controlling interests(3)(4)25% (3)(4)25%
Net earnings1218248% 19510782%
(1)
EBIT before significant items is a non-GAAP measure used by management to assess the performance of the business and has 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.
Group Performance (Continued)
Fletcher Building Limited 2021 Interim Financial Results5
External revenue of $3,987 million was $26
million or 1% higher than the prior period. EBIT
before significant items was $323 million, 47%
higher than the $219 million reported in the prior
period. Group net earnings were $121 million,
compared to $82 million reported in the prior
period. Cash flows from operating activities were
a $428 million inflow, compared to a $5 million
outflow in the prior period.
Overall, the result reflects the Group’s progress in implementing
its strategy to drive performance and growth across a focused
portfolio of assets. In particular, growth in earnings and margins
reflects initiatives undertaken over the past three years to improve
operating disciplines and sustainably reduce the Group’s cost base.
In the current period, this has resulted in underlying EBIT margins
improving materially to 8.1% from 5.5% in the prior period, with
margin expansion reported in all divisions.
In New Zealand, market conditions for the core materials and
distribution divisions (Building Products, Distribution and Concrete)
were broadly in line with the prior year. Activity in the residential
sector was slightly ahead of the prior period, with growth principally
in Auckland and parts of the regional North Island. Offsetting
this, activity in the commercial and infrastructure sectors trended
slightly lower. Gross revenue for the New Zealand core divisions
was 5% higher than the prior period, slightly ahead of market
activity and reflecting price and share gains in certain Building
Products and Concrete businesses. EBIT for the New Zealand core
increased by $58 million or 35% compared to the prior period,
with all three divisions reporting strong growth primarily due to
improved efficiency and operating disciplines as a result of initiatives
implemented over the past three years. This was reflected in an
improved EBIT margin, which increased to 11.3% from 8.8% in the
prior period. EBIT margin improvements were delivered in all New
Zealand core divisions and were strongest in Building Products
and Concrete. In Distribution, gross margins trended lower due to
competitive pressure on price, though this was more than offset by
the benefits of operating model changes and resulted in EBIT
margin expansion.
The Residential and Development division delivered EBIT of $62
million, compared to $35 million in the prior period. The market
environment for housing sales remained positive, with good levels
of demand and supportive pricing in both Auckland and Christchurch.
As a result, EBIT for the Residential business of $62 million was
significantly higher than the $27 million reported in the prior period.
The division’s Clever Core panelisation factory continued to ramp
up production, reporting a small loss in the period on delivery of 34
panelised houses. Land Development EBIT of $2 million compared
to $11 million in the prior period, with the two key transactions for
FY21 targeted for completion in the second half: the Crane Copper
Tube site in Sydney, and the Rocla Gailes site in Brisbane.
The Construction division reported gross revenue of $651 million,
$123 million lower than the prior period, with EBIT for the division of
$13 million in line with the prior period. The lower revenue was due
solely to the ongoing close-out of the legacy projects, with revenue
in the remainder of the business in line with the prior period.
Earnings were underpinned by improved results in both Higgins
and Brian Perry, where EBIT margins lifted to 6.1% from 4.5% in
the prior period. The division continues to make good progress in
reshaping its forward order book to deliver an improved risk profile
and margins.
In Australia, market conditions were mixed. In the residential sector,
detached housing and renovation activity proved resilient, supported
by low interest rates and the government's HomeBuilder grant.
Conversely, activity in the apartments and commercial sectors
trended lower on reduced private sector investment, and key civil
markets for the division’s Pipes businesses were markedly subdued
due to major projects being delayed. The division reported gross
revenue of $1,390 million, which was $63 million or 4% lower than
the prior period. This was due to a 25% reduction in revenue for the
Pipes’ businesses, with the balance of the division’s businesses
reporting revenue in line with the prior period. EBIT before significant
items increased 46% to $51 million, and EBIT margin for the
division increased to 3.7% from 2.4% in the prior period. Growth in
earnings and profitability was driven by the Laminex, Tradelink and
Stramit businesses, reflecting the benefits of operating efficiencies
along with market share gains in key segments. Australia EBIT also
included a $6 million benefit from reduced depreciation on the Rocla
business as it is held for sale.
Significant items were $86 million in the period. These related
predominantly to a $33 million charge in Iplex Australia for site
restructuring activity, and an impairment of $51 million with
respect to the Rocla business, based on a reassessment of likely
divestment proceeds. The Group’s restructuring programme is now
largely complete, with a final circa $30 million of significant items
charges expected in the second half of FY21 to predominantly
complete the Australian restructuring.
Net interest expense for the Group was $56 million in the period,
of which $33 million was related to lease expenses. The Group’s
funding costs for the period decreased by 34% to $23 million,
resulting principally from lower debt levels following the repayment
of $755 million of debt since June 2020. A tax expense of $57
million in the period compared to a tax expense of $28 million in the
prior period.
Basic earnings per share were 14.7 cents in the first half, compared
to 9.8 cents in the prior period. Excluding the impact of significant
items, earnings per share were 23.7 cents, compared with 12.8
cents in the prior period.
Group
Overview
Fletcher Building Limited 2021 Interim Financial Results6
Cash flow (NZ$m) for the period ended
Six months ended
31 December
2020
Six months ended
31 December
2019Change %
EBIT before significant items
(1)
32321947%
Depreciation and amortisation1801832%
Lease principal repayments (91)(84)(8)%
Lease interest paid(33)(35)6%
Provisions and other19(5)NM
Trading cash flow before working capital movements39827843%
Residential and Development50NM
Construction excluding legacy projects6(15)140%
Other divisions:
- Debtors6492(30)%
- Inventories42(34)NM
- Creditors(44)(189)77%
Working capital movements118(146)181%
Trading cash flow excluding legacy projects and significant items516132NM
Legacy projects cash flow(109)(162)33%
Significant items(34)(24)(42)%
Trading cash flow373(54)NM
Add : Lease principal payments 9184(8)%
Less: Cash tax paid(3)(1)NM
Less: Funding costs paid(33)(34)3%
Cash flows from operating activities428(5)NM
Free cash flow excluding legacy projects416(12)NM
(1)
EBIT before significant items is a non-GAAP measure used by management to assess the performance of the business and has 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.
Group Overview (Continued)
GROUP CASH FLOWS
Cash flows from operating activities for the Group were $428
million, compared to an outflow of $5 million in the prior period. The
key drivers of this improvement were: a $120 million increase in
trading cash flows before working capital movements; a $264 million
improvement in underlying working capital cash flows; and a $53
million reduction in outflows on legacy Construction projects.
In the core manufacturing and distribution divisions, effective working
capital management resulted in a $42 million inflow from inventories
and a $64 million inflow from receivables, partly offset by a $44 million
reduction in creditors. Overall, the working capital cycle in the core
divisions improved by 7.6 days compared to the prior period, and is
now considered to be well-positioned and efficient, with material
additional cash release unlikely. A small level of inventory growth is
expected in the second half of the year as resilience stocks are rebuilt
in some businesses.
In Residential and Development, a reduction in working capital as
a result of the large number of house sale settlements completed
contributed to a $50 million cash inflow in the period. In Construction,
the cash outflows on legacy projects reduced to $109 million from
$162 million in the prior period as projects continued to be closed
out, with a portion of the legacy cash outflows in the current period
related to timing of working capital flows. In the remainder of the
Construction division, trading cash flows were an inflow of $30 million
compared to $10 million in the prior period, supported in particular by
performance in Brian Perry Civil.
Capital expenditure for the Group was $82 million, including $31
million for the new Winstone Wallboards plant, with additional
investments focused on key strategic priorities in manufacturing
automation, digitisation, and carbon reduction. Capital expenditure
for the full-year FY21 is expected to be approximately $200 million,
including a total of circa $50 million for the new Winstone Wallboards
plant. From FY22, the Group’s capital expenditure is expected to
Fletcher Building Limited 2021 Interim Financial Results7
OUTLOOK
Market activity for the second half of FY21 is expected to remain
broadly stable compared to the first half of the year. Robust activity
in the New Zealand and Australian residential sectors, notably for
detached housing and renovation work, is expected to be balanced
by softer commercial activity in both geographies. Demand for new
houses in New Zealand is expected to remain robust.
Business performance in the second half of FY21 is expected to
be driven by a continuation of the improved operating disciplines
and efficiencies delivered in the first half. The Company’s cost-out
programme is largely complete, with gross benefits expected to be
broadly stable between the first half and second half of the year.
Company earnings are expected to be relatively evenly weighted
between the two periods, with strong New Zealand Core volumes
and Residential house sales in 1Q21 balanced against earnings from
two Development transactions to be completed in the second half.
FY21 EBIT before significant items is expected to be in a range of
$610 to $660 million. This guidance assumes no material impact
from COVID-19 on prevailing market conditions.
Group Overview (Continued)
be in a range of $200 to $250 million (excluding costs to complete
the wallboards plant), down from a run-rate annual expenditure of
circa $300 million in recent periods. The remaining investment in the
wallboards plant is expected to be circa $220 million in FY22 and circa
$100 million in FY23.
Strong performance on all dimensions of cash management resulted
in Group free cash flow in the period (excluding legacy projects) of
$416 million, compared to an outflow of $12 million in the prior period.
FUNDING
The Group’s balance sheet and funding profile remains strong.
As advised in June 2020, the Group made an early repayment of
US$200 and A$99 million of USPP notes on 29 July 2020 from the
Group’s cash reserves, retiring the Group’s most expensive source
of debt and reducing annual funding costs by $17 million.
Total funding available to the Group as at 31 December 2020 was
$1,812 million of which $925 million was undrawn and there was an
additional $618 million of cash on hand. The Group’s liquidity was
therefore strong at $1.5 billion.
The Group’s gearing at 31 December 2020 was 7.0% compared with
12.3% at 30 June 2020.
The Group’s leverage ratio (net debt / EBITDA) at 31 December 2020
was 0.4 times, compared with 0.9 times at 30 June 2020. While the
leverage ratio is below the Group’s target range of 1.0 to 2.0 times,
the target capital structure takes account of remaining investment
in the Winstone Wallboards plant and legacy construction project
outflows (combined circa $400 million across the period FY21-FY23).
The average maturity of the Group’s debt at 31 December 2020 is 4.3
years and the hedged currency split is 36% Australian dollar; 62%
New Zealand dollar; and 2% spread over various other currencies.
The Group currently has 71% of all borrowings with fixed interest
rates with an average duration of 2.1 years. Inclusive of floating
rate borrowings, the average interest rate on the debt (based on
period-end borrowings) is 4.0%.
Fletcher Building Limited 2021 Interim Financial Results8
Building Products
Financial Summary
Six months ended 31 December
NZ$m20202019Change %
Gross revenue6836456%
External revenue5375076%
EBITDA1289239%
EBIT1016653%
EBIT margin14.8%10.2%4.6%
Funds663716(7%)
Trading cash flow15254181%
Capital expenditure4017(135%)
The Building Products division reported gross
revenue of $683 million, which was 6% higher
than the prior period. EBIT was $101 million,
compared to $66 million in the prior period.
Revenue performance across all businesses in the division was
robust. Businesses primarily selling into residential finishing trades
(Winstone Wallboards, Tasman Insulation, Laminex) performed well,
reporting revenue up 11% from the prior period. This was driven by
sustained levels of demand in residential new build and additions
& alterations, as well as targeted market share gains. In the pipes
(Iplex, Humes) and steel businesses, gross revenue was up by 3%.
These businesses experienced subdued volumes in the infrastructure
and vertical construction markets, whilst civil and subdivision work
showed good demand, particularly in the Auckland region.
EBIT for the division of $101 million was 53% above the prior
period, driven by robust market conditions, price and share gains,
and improved operating efficiency. EBIT margins reflected these
improvements, increasing to 14.8% from 10.2% in the prior period.
Earnings in the pipes’ businesses were up 67% on the prior period,
with increased profitability reflecting the full year impacts of the
transformation plans implemented in FY19 and FY20. EBIT in the
Steel business improved by $17 million compared to the prior period,
supported by strong price governance, a focus on profitable sales mix
and reductions in labour and property costs.
Trading cash flow for the division of $152 million was well ahead
of the $54 million reported in the prior period. Working capital
improvements were made across the division, particularly in finished
stock levels in the Steel and Humes businesses. Strong demand
levels meant the businesses were unable to build finished stock
levels coming into the summer months, with longer lead times
for imported products also reducing raw material holdings. These
reduced levels of stock are expected to rebuild through the second
half of the year.
Capital expenditure in the period was $40 million, of which $31
million was for the new Winstone Wallboards plant in Tauriko.
Building Products’ strategic focus continues to be on four key areas:
organic growth through adjacencies and product innovation; an
efficient operating model; enhanced pricing systems; and improved
customer experience. Highlights for the period included:
–Organic growth into new customer segments and product
categories where we have previously only had limited presence,
for example, the pipes businesses into the electrical sector.
–Continued investment to ensure our manufacturing facilities
are the most efficient in the market and competitive on a global
stage. During the period we continued to advance our new
wallboards and pipes facilities, with investments also made in
automation across other sites.
–Pricing capability continues to improve with the initial focus on
pricing structures, controls and reporting now complete, which
have helped to arrest key areas of price leakage – particularly in
freight recovery and discount management.
EBIT for six months ended 31 December
NZ$m20202019Change %
Building Products836528%
Steel 181NM
Total1016653%
Building
Products
Winstone Wallboards
Laminex New Zealand
Tasman Insulation
Iplex New Zealand
Humes
Fletcher Steel
Divisional Review
Fletcher Building Limited 2021 Interim Financial Results9
Distribution
Financial Summary
Six months ended 31 December
NZ$m20202019Change %
Gross revenue8528243%
External revenue8388054%
EBITDA857316%
EBIT605020%
EBIT margin7.0%6.1%0.9%
Funds200242(17%)
Trading cash flow68646%
Capital expenditure61250%
The Distribution division reported gross revenue
of $852 million, which was $28 million or 3%
higher than the prior period. EBIT was $60 million,
compared to $50 million in the prior period.
The division recorded revenue growth across all regions of New
Zealand, with the exception of parts of the lower South Island.
Growth was well distributed across both the large and smaller
residential trades and consumer segments, while the commercial
sector slowed in the first half.
Gross profit margins continued to come under pressure, with
intense competition throughout the industry. Despite this, EBIT
margin for the division increased to 7.0% from 6.1% in the prior
period as a result of cost and efficiency initiatives delivered over
the past two years. This includes operating model changes in
both the branch network and support offices, including continued
digitisation of the business, workforce optimisation, insourcing of
freight management, and implementation of Hub structures in major
centres. The Hubs now cover around 60% of the network following
the roll-out of this model to the Auckland branches.
Trading cash flow for the division of $68 million was 6% ahead of
the prior period. Receivables continued to be well controlled, while
inventory days increased compared to the prior period. This was a
result of the division’s focus on ensuring availability of key stock lines
in a market constrained for a number of locally and internationally
sourced product lines.
Capital expenditure in the period was $6 million, compared to $12
million in the prior period, with continued investment in digital
innovation and a reduced investment in property.
The division continues to focus on competitive customer offerings,
ease of doing business and market leading services to drive long
term sustainable returns. Highlights for the period include:
–Launch of the SAP Hybris ecommerce platform and release of
the PlaceMakers Trade Portal and the consumer omnichannel
click and collect sites. These investments are part of an
ongoing programme to digitise both the PlaceMakers and
Mico businesses.
–Go-live of the PlaceMakers transport management system across
the branch network, allowing customers to track and trace all
deliveries made from a PlaceMakers branch. This includes the
ability for customers to receive notifications across the product
order life cycle from the time the initial order is made to delivery
on site.
–Continued branch expansion with the opening of the Mico
Matamata and PlaceMakers Warkworth. Mico Upper Hutt will
open in the second half of the year, as will the refurbished
PlaceMakers Levin branch.
Distribution
PlaceMakers
Mico
Forman Building Systems
Divisional Review
Fletcher Building Limited 2021 Interim Financial Results10
Concrete
Financial Summary
The Concrete division reported gross revenue of
$430 million, which was $27 million or 7% higher
than the prior period. EBIT before significant
items was $62 million, compared to $49 million
in the prior period.
The division experienced robust demand across all key segments.
Firth ready-mix volumes increased by 6% over the prior period,
and masonry and Dricon also showed solid revenue gains. Cement
revenue growth of 17% was underpinned by underlying ready-mix
demand as well as market share growth due to the exit of a supplier
in the bulk cement market. Domestic cement prices were stable
compared to the prior period. In Winstone Aggregates, same site
sales volumes were consistent with the prior period, while revenue
lifted 5% on pricing and product mix improvements.
EBIT for the division was 27% ahead of the prior period, with
EBIT margins increasing to 14.4% from 12.2% previously. The
improvement reflects a sustained programme over the past three
years of: manufacturing and supply chain efficiency initiatives;
targeted share gains in cement and ready-mix, and improved pricing
governance. GBC’s earnings were flat compared to the prior period,
with volume growth offset by additional costs in preparation for a 35-
day shut to implement the Tyre Derived Fuel project in January 2021.
Trading cash flow for the division was $88 million, an increase
of 80% on the prior period, driven by the improved earnings and
reduction in working capital. A degree of inventory rebuild is
expected in the second half of the year.
Capital expenditure in the period of $11 million was focused on
the Tyre Derived Fuel project and quarry stripping to access
aggregate resource.
The division’s strategic focus continues to be on projects to: reduce
carbon emissions; improve customer service experience, especially
through digital connectivity; secure long-term resource and operating
footprints; and ensure cost competitive manufacturing and supply
chain positions. Key achievements in the period included:
–Production of a trial batch of cement blended with pozzolanic
material, aimed at reducing the carbon footprint for concrete, with
concrete manufacture and test slabs scheduled for the second
half of the year;
–Commencement of the 35-day kiln shut at GBC’s Portland
cement plant to allow the necessary process changes to
complete the Tyre Derived Fuel initiative. This project, which is in
conjunction with the Ministry for the Environment, will consume
waste tyres to enable both energy cost improvements and
reduce carbon emissions in cement manufacture. Commissioning
will commence in February 2021.
(1)
EBIT and EBITDA before significant items are non-GAAP measures used by management to assess the performance of the business and have been derived from
Fletcher Building Limited's financial statements for the period ended 31 December 2020.
(2)
Details of significant items can be found in note 2.1 of the financial statements.
Concrete
Winstone Aggregates
Golden Bay Cement
Firth Industries
Divisional Review
Six months ended 31 December
NZ$m20202019Change %
Gross revenue4304037%
External revenue2912737%
EBITDA before significant items
(1)
988713%
EBIT before significant items
(1)
624927%
EBIT margin before significant items
(1)
14.4%12.2%2.2%
Significant items
(2)
5NM
Funds585629(7%)
Trading cash flow884980%
Capital expenditure113367%
Fletcher Building Limited 2021 Interim Financial Results11
Residential and Development
Financial Summary
The Residential and Development division
reported gross revenue of $356 million, which
was $132 million or 59% higher than the prior
period. EBIT was $62 million, compared to $35
million in the prior period.
The market environment for the Fletcher Living housing business
was positive. In Auckland, the $600,000 to $900,000 price range
where the business has focused its activities proved attractive to
purchasers, with first home buyers and investors being particularly
active. Sales were equally strong in the Canterbury branch, with a
wide variety of product sold in the CBD across key developments at
One Central (130 have now been sold, with a further 50 agreements
to be settled in the second half of the year) and Colombo St. Sales at
the Atlas Quarter development in Christchurch are now complete.
EBIT for the Residential housing business of $62 million was 130%
higher than the prior period, benefiting from both volume and
price improvements. The business completed sales of 515 units,
compared to 293 in the prior period. Sales volumes in the current
period were boosted by 102 agreements from May and June 2020
which settled in the first quarter of FY21. The average price of units
sold across Auckland and Christchurch during the period was 5%
higher than the prior year, partly due to good demand and partly due
to a more favourable mix of housing typologies sold.
Land Development EBIT of $2 million was $9 million lower than the
prior period. The two key transactions for FY21 are scheduled to
complete in the second half of the year: the former Crane Copper
Tube site in Sydney, which was delayed by COVID-19 and the Rocla
Gailes site in Brisbane.
Clever Core, the division’s panelisation business, made an EBIT
loss of $2 million, compared to the $3 million loss made in the prior
period. The result reflects an increased output of panelised houses
into Fletcher Living, offset by fixed costs associated with running
the manufacturing plant. As Clever Core ramps up its production
and sales of panelised houses to include external customers, it is
expected to move out of start-up mode and into profitability.
Trading cash flow for the division was $112 million compared to
$35 million in the prior period, reflecting the strong sales and a
consequent reduction in housing stock levels. Divisional funds
employed decreased slightly to $593 million at 31 December 2020.
This balance includes 1,971 residential lots for further development
or sale, and the division has a further 1,641 units under unconditional
agreement. Currently the division has approximately 900 lots
secured which are targeted for delivery in FY22.
The division’s key areas of strategic focus are:
–Continuing to scale the core business to sales of circa 1,000 units
p.a., with a particular focus on securing a forward land profile to
support this volume;
–Ramping up Clever Core manufacturing volumes, with sales of
panelised houses to third parties expected in FY22;
–Scaling the division’s apartment business, with a dedicated
team established to focus on this particular form of
residential product.
Residential and
Development
Residential
Land Development
Clever Core
Divisional Review
Six months ended 31 December
NZ$m20202019Change %
Gross revenue35622459%
External revenue35122457%
EBITDA633675%
EBIT623577%
EBIT margin17.4%15.6%1.8%
Funds593657(10%)
Trading cash flow11235220%
Capital expenditure2NM
EBIT for six months ended 31 December
NZ$m20202019Change %
Residential6227130%
Land
Development
211(82%)
Clever Core(2)(3)33%
Total623577%
Fletcher Building Limited 2021 Interim Financial Results12
Construction
Financial Summary
The Construction division reported gross revenue
of $651 million, which was $123 million or
16% lower than the prior period. EBIT before
significant items was $13 million, compared to
$14 million in the prior period.
The reduction in divisional revenue was due solely to reduced work
on legacy projects, while revenues elsewhere in the division were
stable. During the period, Commercial Bay and Grey Base Hospital
were handed over to client. Progress on major infrastructure
projects continues in line with the revised completion dates set post
COVID-19. Work to complete across the legacy portfolio is now $0.4
billion, down from $0.6 billion at 30 June 2020.
The division continued to rebuild its forward order book, which
is $3.1 billion as at 31 December 2020. This includes smaller
self-perform work in Higgins and Brian Perry, national and local
maintenance contracts, and the 10-year Watercare Enterprise
Framework Agreement, providing an estimated $1.3 billion backlog
of work for Brian Perry Civil over the next 9 years. During the period,
the division achieved preferred status on a further $0.5 billion
of works including preferred contractor on Auckland Transport's
AMETI busway alliance project. New work secured by the Buildings
and South Pacific businesses was limited due to the impacts
of COVID-19, but there is a solid pipeline of opportunities being
tendered over the second half of FY21.
EBIT before significant items for the division was $13 million, in
line with the prior period. Earnings were underpinned by Higgins
and Brian Perry Civil. EBIT margins in both of these businesses
was around 6.1%, reflecting efforts to strengthen bid governance,
commercial acumen and delivery management.
Trading cash flow for the division was an outflow of $80 million in the
period, compared to an outflow of $152 million in the prior period.
Excluding the cash impacts of the legacy projects, trading cash for
the division was an inflow of $30 million, compared to an inflow of
$10 million in the prior year.
Capital expenditure in the period of $14 million was focused on
mobile and static asphalt plants for Higgins to service both New
Zealand and the Pacific.
The Division’s ongoing focus is: completion of the legacy projects
within provisions; continuing to build a balanced portfolio of work
with an improved risk and margin profile; and further embedding
the ‘Fletcher One’ standardised governance and management
framework across the business.
(1)
EBIT and EBITDA before significant items are non-GAAP measures used by
management to assess the performance of the business and have been derived
from Fletcher Building Limited's financial statements for the period ended
31 December 2020.
(2)
Details of significant items can be found in note 2.1 of the financial statements.
Construction
South Pacific
Brian Perry Civil
Higgins
Buildings
Infrastructure
Divisional Review
Six months ended 31 December
NZ$m20202019Change %
Gross revenue6517 74(16%)
External revenue62074 2(16%)
EBITDA before
significant items
(1)
3233(3%)
EBIT before
significant items
(1)
1314(7%)
EBIT margin before
significant items
(1)
2.0%1.8%0.2%
Significant items
(2)
(1)NM
Funds151219(31%)
Trading cash flow(80)(152)47%
Capital expenditure141926%
EBIT before significant items
(1)
for six months ended 31 December
NZ$m20202019Change %
Higgins161414%
Other(3)NM
Total1314(7%)
Fletcher Building Limited 2021 Interim Financial Results13
Australia
Financial Summary
The Australia division reported gross revenue
of $1,390 million, which was $63 million or
4% lower than the prior period. EBIT before
significant items was $51 million, an increase of
46% compared to the $35 million reported in the
prior period.
Overall, the division continues to benefit from the significant
programme of improvement initiatives put in place over the past
three years. Growth in earnings and profitability in the current
period was across a broader range of the division’s businesses, with
Laminex, Tradelink and Stramit all posting improved results. Cost
reduction activities in the division are now broadly complete, with
the focus increasingly on improved customer services and solutions.
EBIT margins for the division improved to 3.7% from 2.4% in the
prior period.
Building Products Australia revenue declined by 10% in the period,
while EBIT before significant items of $34 million was up $7
million. Laminex and Fletcher Insulation delivered revenue slightly
ahead of the prior period as activity in the residential sector proved
more robust than expected, with operational and manufacturing
efficiencies mitigating the impact of the COVID-19 lockdown in the
key sales region of Victoria. Laminex earnings improved 4% due to
market share gains in key categories, major product launches, an
improved digital offering, and a lower cost base. Fletcher Insulation
delivered steady earnings, with the benefits from the restructuring of
its manufacturing and distribution footprints over the past two years
partly negated in the period by the Victoria lockdown. In the Pipes
businesses (Iplex, Rocla), revenue declined by 25%, primarily due
to very low levels of activity and delays in key infrastructure projects
linked to the impact of COVID-19, as well as the decision to exit the
Rocla Gailes and Emu Plains sites. Rocla’s earnings in the current
period included a $6 million benefit from lower depreciation, as the
business is currently held for sale. Excluding this benefit, earnings
from the Pipes businesses were in line with the prior period, with
benefits of efficiency and cost-out initiatives in the past three years
offsetting the significantly lower market activity.
Distribution Australia reported reduced revenues of 3% in the period,
while earnings improved to $8 million compared to $4 million in
the prior period. Tradelink’s focus on the small to medium network
customer segment continues to provide increased stability, with
revenues in this segment growing 4% compared to the prior year,
offset by declines in the commercial segment. The shift to increased
own brand sales is providing tangible benefits with the business
delivering over 25% front of wall own brand sales for the first time,
and with further own brand penetration targeted. Earnings in Oliveri
grew in the period as a result of strong uptake in the new bathroom
product range, market share growth in the traditional kitchen sink
and tap market as well as the successful execution of cost-out and
manufacturing initiatives.
(1)
EBIT and EBITDA before significant items are non-GAAP measures used by
management to assess the performance of the business and have been derived
from Fletcher Building Limited's financial statements for the period ended
31 December 2020.
(2)
Details of significant items can be found in note 2.1 of the financial statements.
Australia
Laminex Australia
Iplex Australia
Rocla
Fletcher Insulation
Tradelink
Oliveri Solutions
Stramit
Building Products Australia:
Divisional Review
Distribution Australia:
Steel Australia:
Six months ended 31 December
NZ$m20202019Change %
Gross revenue1,3901,453(4%)
External revenue1,3501,410(4%)
EBITDA11510312%
EBIT before
significant items
(NZ$m)
(1)
513546%
EBIT before
significant items
(A$m)
(1)
483345%
EBIT margin before
significant items
(1)
3.7%2.4%1.3%
Significant items
(2)
(87)(35)(149%)
Funds1,3671,669(18%)
Trading cash flow52(64)181%
Capital expenditure93272%
EBIT before significant items
(1)
for six months ended 31 December
NZ$m20202019Change %
Building Products
Australia
342726%
Distribution
Australia
8410 0%
Steel Australia135160%
Divisional costs(4)(1)NM
Total513546%
Fletcher Building Limited 2021 Interim Financial Results14
Steel Australia grew revenues by 9% in the period, with EBIT of
$13 million materially ahead of the $5 million reported in the prior
period. New product launches, a further reduction in the cost base,
and market share gains in key segments – especially in the higher
margin shed segment – all contributed to the improved result.
Significant items charges in the division were $87 million in
the period. These comprised $36 million in charges related to
restructuring activity, of which $33 million related to site closures in
the Iplex business; and an impairment of $51 million with respect to
Rocla, based on a reassessment of likely divestment proceeds.
Trading cash inflows were $52 million compared to an outflow of
$64 million in the prior period. Trading cash excluding significant
items was $70 million compared to an outflow of $44 million in the
prior period. The result reflects ongoing improvements in inventory
management and tight debtor controls.
Capital expenditure was reduced in the period to just $9 million,
with key investments focused on digital migration, new product
development and automation in the manufacturing businesses.
The Australia division’s strategic focus will be on maximising
efficiencies in the operating model, maintaining the cost base
delivered by restructuring programmes, the continuation of product
and service innovation, and investment in improved digital offers. The
sale of the Rocla business is ongoing.
Australia (Continued)
Fletcher Building Limited 2021 Interim Financial Results15
Consolidated Income Statement (Unaudited)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Notes
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
June 2020
NZ$M
Revenue
3,987
3,961 7,309
Cost of goods sold
(2,839)
(2,860)(5,496)
Gross margin
1,148
1,101 1,813
Selling, general and administration expenses
(834)
(888)(1,660)
Share of profits of associates and joint ventures
9
6 7
Significant items2.1
(86)
(35)(276)
Earnings before interest and taxation (EBIT)
237
184 (116)
Lease interest expense
(33)
(35)(69)
Funding costs
(23)
(35)(80)
Earnings/(loss) before taxation
181
114 (265)
Taxation (expense)/benefit4
(57)
(28)81
Earnings/(loss) after taxation
124
86 (184)
Earnings attributable to non-controlling interests
(3)
(4)(12)
Net earnings/(loss) attributable to the shareholders121
82 (196)
Net earnings/(loss) per share (cents)
Basic
14.7
9.8 (23.5)
Diluted
14.2
9.8 (23.5)
Weighted average number of shares outstanding (millions of shares)
Basic
824
835 835
Diluted
894
906 835
Dividends declared per share (cents)
12
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2021 Interim Financial Results16
Consolidated Statement of Comprehensive Income (Unaudited)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
June 2020
NZ$M
Net earnings/(loss) attributable to shareholders
121
82 (196)
Net earnings attributable to non-controlling interests
3
4 12
Net earnings/(loss)
124
86 (184)
Other comprehensive income
Items that do not subsequently get reclassified to profit or loss:
Movement in pension reserve(17)
(17)
Items that may be reclassified subsequently to profit or loss in the future:
Movement in cash flow hedge reserve
(21)
(1)(6)
Movement in currency translation reserve
(11)
(4)35
(32)
(5)29
Other comprehensive income/(loss)
(32)
(5)12
Total comprehensive income/(loss) for the period92
81 (172)
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2021 Interim Financial Results17
Consolidated Statement of Movements in Equity (Unaudited)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
NZ$MShare capital Retained earningsShare-based payments reserve Cash flow hedge reserve Currency translation reserve Pension reserve TotalNon-controlling interestTotal equity
Total equity at 30 June 2019
3,427 898 11 (6)(184)(5)4,141 32 4,173
Change in accounting policies (183)(183)(183)
Adjusted equity at 30 June 20193,427 715 11 (6)(184)(5)3,958 32 3,990
Total comprehensive income/(loss) for the period 82 (1)(4)77 4 81
Movement in non-controlling interests (6)(6)
Dividends paid to shareholders of the parent(128)(128)(128)
Repurchase of shares(141)(141)(141)
Total equity at 31 December 20193,286 669 11 (7)(188)(5)3,766 30 3,796
Adjusted equity at 30 June 2019 3,427 715 11 (6) (184) (5) 3,958 32 3,990
Total comprehensive income/(loss) for the year (196)(6)35 (17) (184)12 (172)
Movement in non-controlling interests (9)(9)
Dividends paid to shareholders of the parent(128)(128)(128)
Movement in share-based payment reserve1 1 1
Repurchase of shares(147)(147)(147)
Total equity at 30 June 20203,280 391 12 (12)(149)(22)3,500 35 3,535
Total comprehensive income/(loss) for the period 121 (21)(11)89 3 92
Movement in non-controlling interests (27)(27)
Movement in share-based payment reserve4 4 4
Movement in treasury stock(7)(7)(7)
Total equity at 31 December 20203,273 512 16 (33)(160)(22)3,586 11 3,597
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2021 Interim Financial Results18
Consolidated Balance Sheet (Unaudited)
AS AT 31 DECEMBER 2020
AssetsNotes
Dec 2020
NZ$M
Dec 2019
NZ$M
Jun 2020
NZ$M
Current assets:
Cash and cash equivalents
618
570 1,104
Current tax assets
62
65 66
Contract assets2.5
15
50 69
Derivatives
7
6 125
Debtors
1,029
1,125 1,041
Inventories
1,126
1,370 1,215
2,857
3,186 3,620
Assets classified as held for sale2.4109 204
Total current assets
2,966
3,186 3,824
Non-current assets:
Property, plant and equipment
1,541
1,707 1,555
Intangible assets
1,118
1,130 1,133
Right-of-use assets
1,393
1,500 1,413
Investments in associates and joint ventures
159
156 158
Inventories
305
309 301
Retirement plan assets
41
61 42
Derivatives
8
111 67
Deferred tax assets
235
168 285
Total non-current assets
4,800
5,142 4,954
Total assets7,766
8,328 8,778
Liabilities
Current liabilities:
Creditors, accruals and other liabilities
1,034
1,046 1,098
Provisions
199
193 251
Lease liabilities
172
166 172
Current tax liabilities
5
5 5
Derivatives
22
5 7
Contract liabilities2.5
177
80 223
Borrowings5
109
159 581
1,718
1,654 2,337
Liabilities classified as held for sale2.4
33
48
Total current liabilities
1,751
1,654 2,385
Non-current liabilities:
Creditors, accruals and other liabilities
46
63 60
Provisions
25
16 26
Lease liabilities
1,528
1,611 1,549
Deferred tax liabilities2
Derivatives
23
9 13
Borrowings5
796
1,177 1,210
Total non-current liabilities
2,418
2,878 2,858
Total liabilities4,169
4,532 5,243
Equity
Share capital
3,273
3,286 3,280
Reserves
313
480 220
Shareholders' funds
3,586
3,766 3,500
Non-controlling interests
11
30 35
Total equity 3,597
3,796 3,535
Total liabilities and equity7,766
8,328 8,778
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
On behalf of the Board, 17 February 2021
Bruce Hassall Robert McDonald
Chair of Directors Director
Fletcher Building Limited 2021 Interim Financial Results19
Consolidated Statement of Cash Flows (Unaudited)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Cash flow from operating activities
Receipts from customers
3,968
3,954 7,512
Dividends received
3
1 1
Payments to suppliers, employees and other
(3,474)
(3,890)(6,957)
Interest paid
(66)
(69)(146)
Income tax paid
(3)
(1)
Net cash from operating activities428
(5)410
Cash flow from investing activities
Sale of property, plant and equipment
14
2 5
Sale of subsidiaries/investments1 1
Purchase of property, plant and equipment and intangible assets
(82)
(119)(240)
Net cash from investing activities(68)
(116)(234)
Cash flow from financing activities
Issue of capital notes
42
10 0
Drawdown of borrowings401
Repayment of borrowings
(755)
(271)(269)
Principal elements of lease payments
(91)
(84)(171)
Repurchase of capital notes(50)(220)
Distribution to non-controlling interests
(27)
(6)(9)
Treasury stock purchased/repurchase of shares
(7)
(141)(147)
Dividends (128)(128)
Net cash from financing activities(838)
(680)(443)
Net movement in cash held
(478)
(801)(267)
Add: opening cash and liquid deposits
1,104
1,372 1,372
Effect of exchange rate changes on net cash
(8)
(1)(1)
Closing cash and deposits618
570 1,104
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2021 Interim Financial Results20
Notes to the Consolidated Financial Statements
1. Corporate information
The condensed consolidated interim financial statements presented are those of Fletcher Building Limited and its subsidiaries (the "Group").
Fletcher Building Limited is a company domiciled in New Zealand, registered under the Companies Act 1993 and is a FMC Reporting Entity
under Financial Markets Conduct Act 2013. The Company is a for-profit entity.
Basis of preparation
The condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New
Zealand and the requirements of the Financial Markets Conduct Act 2013 and the Main Board/Debt Market Listing Rules of NZX Limited.
The condensed consolidated interim financial statements comply with NZ IAS 34 and IAS 34 Interim Financial Reporting and do not include all
the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s audited annual
consolidated financial statements as at 30 June 2020.
2. Key estimates and judgements
2.1 SIGNIFICANT ITEMS
Six months ended 31 December 2020
Restructuring
activity
(1)
NZ$M
Property
rationalisation
(2)
NZ$M
Impairment
of assets
(3)
NZ$M
M&A
activity
(4)
NZ$M
Total
NZ$M
Concrete (1) 6 5
Construction (1) (1)
Australia (13) (15) (59) (87)
Other (3) (3)
Total significant items before taxation(18)(15)(59)6 (86)
Tax benefit on above items4 5 3 12
Total significant items after taxation(14)(10)(56)6 (74)
Six months ended 31 December 2019
Restructuring
activity
NZ$M
Property
rationalisation
NZ$M
Impairment
of assets
NZ$M
M&A
activity
NZ$M
Total
NZ$M
Australia (35) (35)
Total significant items before taxation(35)(35)
Tax benefit on above items 10 10
Total significant items after taxation(25)(25)
Year ended 30 June 2020
Restructuring
activity
NZ$M
Property
rationalisation
NZ$M
Impairment
of assets
NZ$M
M&A
activity
NZ$M
Total
NZ$M
Building Products (6) (3) (10) (19)
Distribution (9) (3) (6) (18)
Concrete (5) (5) (3) (13)
Residential and Development (1) (1)
Construction (8) (3) (2) (13)
Australia (32) (33) (101) (166)
Other (32) (1) (13) (46)
Total significant items before taxation(93)(48)(135)(276)
Tax benefit on above items 24 15 38 77
Total significant items after taxation(69)(33)(97)(199)
Fletcher Building Limited 2021 Interim Financial Results21
Notes to the Consolidated Financial Statements (Continued)
In reporting financial information, the Group presents non-GAAP performance measures, which are not defined or specified under the
requirements of NZ IFRS.
The Group makes certain significant item adjustments to the statutory profit measures in order to derive many of these non-GAAP measures.
The Group’s policy is to exclude items that are considered to be significant in both nature and/or quantum and where treatment as an adjusted
item provides stakeholders with additional useful information to assess the year-on-year trading performance of the Group. On this basis, the
following items were included within significant items for the period ended 31 December 2020:
(1)
Restructuring activity
The Group announced its New Zealand and Australia restructuring programme on 20 May 2020. Ongoing implementation of the programme's
initiatives has resulted in a net charge of $18 million recognised in the period, $11 million of these costs are attributable to changes in Iplex
Australia's business operations.
(2)
Property rationalisation
In line with the restructuring strategy announced on 20 May 2020 the Group undertook a review of its operational property footprint. The costs
incurred by the Group in this period relate primarily to the exit of manufacturing and distribution sites by Iplex Australia.
(3)
Impairment of assets
Rocla Pty Limited ($51 million)
The Rocla business continues to be classified as a disposal group held for sale (refer to note 2.4). Under this classification, the net assets of
the business are measured at the lower of carrying value or fair value less cost to sell. As the divestment process has been underway since
1 June 2020, the fair value of the business has been assessed to be lower than the carrying value of the net assets as at 31 December 2020.
A write down charge of $51 million has therefore been recognised against these assets.
Iplex Australia ($8 million)
The Group has recognised a net impairment charge of $8 million to account for the write down of property, plant and equipment and inventory, the
charge relates primarily to changes in Iplex Australia's business operations.
(4)
M&A Activity
On 31 July 2020 the Group completed the sale of quarry assets in Manawatu
-
, the assets had been reported as property, plant and equipment prior
to the disposal. The transaction resulted in a gain on sale of $6 million.
2.2 INTANGIBLE ASSET IMPAIRMENT TESTING
The Group performs a detailed impairment assessment annually and considers indicators of impairment at each interim reporting date. At
31 December 2020, the Group performed a review of indicators of impairment for all cash-generating units with significant intangible asset
balances. No indicators of impairment have been identified as a result of this review.
2.3 SUPPLEMENTARY DISCLOSURES: EARNINGS PER SHARE
The below disclosure has been included to provide additional useful information by removing the impact of one-off events in the current and
prior year, and the resulting impact on the earnings per share measure.
The effect of significant items on earnings/(loss) per share is as follows:
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Net earnings/(loss) after taxation (as per income statement)
121
82(196)
Add back: Significant items after taxation (note 2.1)
74
25199
Net earnings before significant items
195
1073
Net earnings per share before significant items (cents)
23.7
12.80.4
Net earnings/(loss) per share - as reported per income statement (cents)
14.7
9.8(23.5)
Fletcher Building Limited 2021 Interim Financial Results22
Notes to the Consolidated Financial Statements (Continued)
2.4 ASSETS HELD FOR SALE
Rocla Pty Limited
On 19 February 2020, the Group announced its intention to divest the Rocla business, a wholly owned subsidiary reported under the Australia
segment. The announcement to suspend the divestment process was made on 25 March 2020 in response to COVID-19, the process was
recommenced on 1 June 2020. At 30 June 2020, the business met the requirements to be classified as a disposal group held for sale and
depreciation of the relevant assets ceased from 1 June 2020. At 31 December 2020 the Group has assessed the latest facts and circumstances
in relation to the Rocla divestment process and concluded that the classification of Rocla as a disposal group remains appropriate.
During the period the Group transferred land at Rocla's Brisbane and Sydney sites, which was previously classified as property, plant and
equipment, to inventory held for sale. The Group intends to develop and realise the land assets in the ordinary course of business. These assets
have been excluded from held for sale classification and presented under the Residential and Development reportable segment.
The Group has reassessed the fair value less costs to sell of the business' remaining net assets as at 31 December 2020 and recognised
a write-down of $51 million. The fair value of Rocla's net assets has been assessed based on information received through the
divestment process.
The summary of Rocla's assets and associated liabilities classified as held for sale is presented below:
Dec 2020
NZ$M
Dec 2019
NZ$M
Jun 2020
NZ$M
Assets
Property, plant and equipment
34
118
Right-of-use assets
7
6
Inventories
52
50
Debtors
16
30
Assets held for sale
109 204
Liabilities
Creditors, accruals and other liabilities
18
28
Provisions
8
13
Lease liabilities
7
7
Liabilities directly associated with assets held for sale
33
48
Net assets directly associated with disposal group
76
156
2.5 SUPPLEMENTARY DISCLOSURES: CONSTRUCTION ACCOUNTING
Construction work in progress is stated at cost plus profit recognised to date, less progress billings. Cost includes all expenditure directly
related to specific projects and an allocation of fixed and variable overheads incurred in the Group’s contract activities based on normal
operating capacity.
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
June 2020
NZ$M
Construction contracts with cost and margin in advance
15
50 69
Contract assets15
50 69
Construction contracts with billings in advance of costs and margin
177
80 223
Contract liabilities177
80 223
Fletcher Building Limited 2021 Interim Financial Results23
Estimates and judgements are made relating to a number of factors when assessing construction contracts. These primarily include the
programme of work throughout the contract period, assessment of future costs after considering changes in the scope of work, maintenance
and defect liabilities, expected inflation (for unlet sub-trades) and performance bonuses or penalties. Construction projects are inherently
more uncertain earlier in their lifetime, which leads to a number of significant estimates and judgements being made at these early stages.
The significant judgements inherent in accounting for the Group’s most material construction projects are:
–The extent to which a project progresses in line with the complex project programme and timetable previously formed and the resulting
impact of any programme delays or gains on project costs, especially project overheads (preliminary and general costs) and any liquidated
or other damages;
–Sub-contractor cost, in particular cost that is yet to be agreed in scope or price (including inflationary pressures) or that relating to
programme prolongation;
–The outcome of ongoing commercial negotiations, including elements of variable consideration and changes in project scope; and
–Future weather and ground conditions.
Status of construction projects ( > $200m original contract value) as at 31 December 2020
A summary of total contracted work under construction and details of the major projects and their approximate stage of completion is disclosed
to demonstrate the uncertainty that remains on these projects.
Business Unit
Percentage of
completion (% cost)
Forecast
completion
NZICC - Guaranteed maximum price and fixed price contractBuildings82%2023
NZICC Reinstatement - Cost plus marginBuildings20%2023
Pu
-
hoi to Warkworth - Fixed price contract (Public Private Partnership)Infrastructure70%2022
Hamilton City Edge Expressway - Alliance contractInfrastructure / Higgins87%2021
Peka Peka to O
-
taki Expressway - Fixed price contractInfrastructure / Higgins65%2022
Revenue Backlog by Business Unit as at 31 December 2020
Current Revenue Backlog
NZ$M
Top 5 projects as a % of
Revenue Backlog
Buildings
534
10 0%
Infrastructure *
464
91%
Higgins
732
33%
Brian Perry Civil *
1,253
12%
South Pacific
147
88%
3,130
N/A
* During the period the Watercare Enterprise Framework Agreement contract has moved to being predominately delivered by Brian Perry Civil, previously the estimated backlog was equally
allocated to Infrastructure and Brian Perry Civil business units.
Revenue backlog refers to the level of construction work the Group is contracted to but is not yet complete as at period end. This represents
the performance obligations that are yet to be completed for the construction contracts active as at 31 December 2020. The long term nature
of the contracts held by the Infrastructure, Brian Perry and Higgins businesses will see these performance obligations completed over a period
generally between one to five years, although some may extend longer.
New Zealand International Convention Centre (NZICC)
On 22 October 2019 there was a significant fire at the NZICC project construction site causing damage to both the International Convention
Centre and Hobson Street Hotel. Contract Works and Third-Party Liability insurances are in place on the project, and the Fletcher Construction
Company Limited is an insured party under these policies.
The NZICC project continues to be accounted for under NZ IFRS 15: Revenue from Contracts with Customers and NZ IAS 37: Provisions,
Contingent Liabilities and Contingent Assets.
The Group has assessed all relevant known facts and circumstances related to the estimation of cost to complete and insurance recoveries
and concluded based on current information that there is no additional requirement for provisions in these financial statements. The Group’s
assessment of the cost to complete relies on application of estimates and judgements (e.g. measurement of remediation’s cost to complete,
the likelihood of receipt of insurance recoveries and quantification of any claims and costs that are outside of insurance cover) and as such
may be subject to change as the project progresses.
Notes to the Consolidated Financial Statements (Continued)
Fletcher Building Limited 2021 Interim Financial Results24
3. Segmental information
Segmental information is presented in respect of the Group’s industry and geographical segments.
Industry segmentsSix months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Gross Revenue
Building Products
683
645 1,173
Distribution
852
824 1,471
Concrete
430
403 740
Residential and Development
356
224 466
Construction
651
774 1,318
Australia
1,390
1,453 2,802
Other
5
5 10
Group
4,367
4,328 7,980
Intercompany Revenue
(380)
(367)(671)
External Revenue Per Income Statement
3,987
3,961 7,309
External Revenue
Building Products
537
507 922
Distribution
838
805 1,440
Concrete
291
273 503
Residential and Development
351
224 460
Construction
620
742 1,261
Australia
1,350
1,410 2,723
Group
3,987
3,961 7,309
EBIT before significant items
Building Products
101
66 87
Distribution
60
50 85
Concrete
62
49 74
Residential and Development
62
35 65
Construction
13
14 (147)
Australia
51
35 33
Corporate
(26)
(30)(37)
Group
323
219 160
Significant items (note 2.1)
(86)
(35)(276)
Group
237
184 (116)
Depreciation, depletion and amortisation expense
Building Products
27
26 53
Distribution
25
23 47
Concrete
36
38 74
Residential and Development
1
1 3
Construction
19
19 40
Australia
64
68 135
Corporate
8
8 18
Group
180
183 370
Notes to the Consolidated Financial Statements (Continued)
Fletcher Building Limited 2021 Interim Financial Results25
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Capital expenditure
Building Products
40
17 53
Distribution
6
12 21
Concrete
11
33 50
Residential and Development2 3
Construction
14
19 32
Australia
9
32 65
Corporate
2
4 8
Group
82
119 232
Funds*
Building Products
663
716 678
Distribution
200
242 209
Concrete
585
629 607
Residential and Development
593
657 604
Construction
151
219 50
Australia
1,367
1,669 1,494
Other (including debt and taxation)
38
(336)(107)
Group
3,597
3,796 3,535
Geographic segments External Revenue
New Zealand
2,582
2,472 4,466
Australia
1,349
1,428 2,740
Other jurisdictions
56
61 103
Group
3,987
3,961 7,309
EBIT before significant items
New Zealand
270
166 110
Australia
49
44 42
Other jurisdictions
4
9 8
Group
323
219 160
Funds*
New Zealand
2,024
2,501 2,221
Australia
1,415
1,681 1,495
Other (including debt and taxation)
158
(386)(181)
Group
3,597
3,796 3,535
Non-current assets
+
New Zealand
2,819
2,886 2,836
Australia
1,646
1,868 1,670
Other
51
48 53
Group
4,516
4,802 4,559
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes. Group balances such as borrowings and taxation are allocated to Corporate as
these are managed at a Group level.
+ Excludes deferred tax assets, retirement plan surplus and financial instruments.
Notes to the Consolidated Financial Statements (Continued)
Fletcher Building Limited 2021 Interim Financial Results26
4. Taxation expense/(benefit)
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Earnings/(loss) before taxation181114(265)
181114(265)
Taxation at 28 cents per dollar5132(74)
Adjusted for:
Difference in tax rates(1)(4)
Non assessable income(6)(1)(3)
Non deductible expenses1514
Tax losses for which no deferred tax asset was recognised2
Utilisation of previous unrecognised tax losses(1)(3)(3)
Tax in respect of prior years(2)(3)
5728(81)
Tax expense/(benefit) on net earnings/(loss)5728(81)
5728(81)
Tax expense/(benefit) on earnings/(loss) before significant items6938(4)
Tax benefit on significant items(12)(10)(77)
5728(81)
The net deferred tax asset balance of $235 million at 31 December 2020 largely comprises Construction provisions and Australian tax losses
incurred in the prior periods. It is expected there will be sufficient future earnings in New Zealand and Australia to utilise the deferred tax asset
in each of these jurisdictions.
5. Borrowings
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Private placements 476 878 1,001
Bank loans 400
Capital notes 406 435 365
Other loans 23 23 25
Carrying value of borrowings (as per balance sheet) 905 1,336 1,791
Less: value of derivatives used to manage changes in hedged risks
on debt instruments
(18)(114)(190)
Economic debt 887 1,222 1,601
Less: Cash and cash equivalents (618)(570)(1,104)
Net debt 269 652 497
Notes to the Consolidated Financial Statements (Continued)
Fletcher Building Limited 2021 Interim Financial Results27
Carrying value of borrowings included within the balance sheet as follows:
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Current borrowings
109
159 581
Non-current borrowings
796
1,177 1,210
Carrying value of borrowings (as per balance sheet) 905 1,336 1,791
Less: Cash and cash equivalents
(618)
(570)(1,104)
Net debt (as per balance sheet) 287 766 687
6. Fair value measurement
Financial instruments are measured at fair value using the following fair value measurement hierarchy:
(Level 1) Quoted prices (unadjusted) in active markets for identical assets or liabilities.
(Level 2) Inputs that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) other than quoted
prices included within level 1.
(Level 3) Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
All of the Group's derivatives are in designated hedge relationships and are measured and recognised at fair value. All derivatives are level 2
valuations based on accepted valuation methodologies. Forward exchange fair value is calculated using quoted forward exchange rates and
discounted using yield curves derived from quoted interest rates matching maturity of the contract. The fair value of electricity price swaps is
measured using a derived forward curve and discounted using yield curves derived from quoted interest rates matching the maturity of the
contract. Interest rate derivatives are calculated by discounting the future principal and interest cash flows at current market interest rates that
are available for similar financial instruments.
Fair value disclosures
The fair values of borrowings used for disclosure are measured under level 2, by discounting future principal and interest cash flows at the
current market interest rate plus an estimated credit margin that is available for similar financial instruments with a similar credit profile to
the Group. The interest rates across all currencies used to discount future principal and interest cash flows are between (0.6)% and 4.7%
(December 2019: 1.02% and 4.99%; June 2020: (0.5)% and 4.0%) including margins, for both accounting and disclosure purposes.
7. Contingencies and commitments
Provisions are made in the ordinary course of business for all known and probable future claims to the extent they can be reliably measured.
There have been no material movements in capital expenditure commitments, contingent liabilities or contingent assets to those disclosed in
the 30 June 2020 annual report.
Silicosis
As at 31 December 2020, Laminex Australia (together with other engineered stone manufacturers and fabricators) was the subject of 29 silica
related personal injury claims based in Queensland. No claims had been lodged in any other states. Additionally, Victoria based Slater & Gordon,
in April 2020, advised of their intent to join Laminex Australia to a class action. No further correspondence has been received.
The Group has concluded it is too early to make a reliable estimate of both the current and potential claims and the extent of liability (if any)
Laminex Australia may have. Accordingly, the Group has not recognised any provisions with respect to the outstanding or future silicosis claims
as at 31 December 2020.
Notes to the Consolidated Financial Statements (Continued)
Fletcher Building Limited 2021 Interim Financial Results28
8. Reconciliation of net earnings to net cash from operating activities
Six months
Dec 2020
NZ$M
Six months
Dec 2019
NZ$M
Year ended
Jun 2020
NZ$M
Net earnings/(loss)
121
82 (196)
Earnings attributable to minority interest
3
4 12
124
86 (184)
Add/(less) non-cash items:
Depreciation, depletions and amortisation
180
183 370
Other non-cash items
61
3 240
Taxation
54
27 (81)
(Gain)/loss on disposal of businesses and property, plant
and equipment
(2)
2 7
293
215 536
Net working capital movements
Residential and Development
50
50
Construction
(101)
(175)(19)
Other divisions:
Debtors
64
9295
Inventories
42
(34)(1)
Creditors
(44)
(189)(67)
11
(306)58
Net cash from operating activities428
(5)410
9. Subsequent events
Ihumātao
On 11 February 2021, Fletcher Residential and the Crown have signed a Sales & Purchase Agreement to sell the land it owns at 545 – 561
O
-
ruarangi Road, commonly known as Ihuma
-
tao, for $29.9 million. The financial effects of this transaction have not been recognised at
31 December 2020 and will be accounted for in the second half of the financial year.
Dividend
On 17 February 2021, the Directors declared an interim dividend of 12 cents per share, payable on Wednesday 24 March 2021.
Notes to the Consolidated Financial Statements (Continued)
Fletcher Building Limited 2021 Interim Financial Results29
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR’S REVIEW REPORT
To the Shareholders of Fletcher Building Limited
Conclusion
We have reviewed the interim financial statements of Fletcher Building Limited (“the Company”) and its
subsidiaries (together “the Group”) which comprise the statement of financial position as at 31 December 2020,
and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the
six month period ended on that date, and a summary of significant accounting policies and other explanatory
information. Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial statements of the Group do not present fairly, in all material respects the financial
position of the Group as at 31 December 2020, and its financial performance and its cash flows for the six month
period ended on that date, in accordance with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by
the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities
for the Review of the Financial Statements section of our report. We are independent of the Group in accordance
with the relevant ethical requirements in New Zealand relating to the audit of the annual financial statements, and
we have fulfilled our other ethical responsibilities in accordance with these ethical requirements.
Other than in our capacity as auditor we have no relationship with, or interest in, the Company or any of its
subsidiaries. Partners and employees of our firm may deal with the Group on normal terms within the ordinary
course of trading activities of the business of the Group.
Directors’ Responsibility for the Interim Financial Statements
The Directors of the Group are responsible, on behalf of the Group, for the preparation and fair presentation of the
interim financial statements in accordance with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting and for such internal control as the Directors determine is necessary to enable the
preparation and fair presentation of the interim financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibilities for the Review of the Interim Financial Statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE
2410 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that
the interim financial statements, taken as a whole, are not prepared in all material respects, in accordance with
New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, consisting of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. The procedures performed
in a review are substantially less than those performed in an audit conducted in accordance with International
Standards on Auditing (New Zealand) and consequently do not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an
audit opinion on those interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Brent Penrose.
Chartered Accountants
Auckland
17 February 2021
Independent Auditor's Review Report
To the Shareholders of Fletcher Building Limited
CONCLUSION
We have reviewed the interim financial statements of Fletcher Building Limited (“the Company”) and its subsidiaries (together “the Group”)
which comprise the statement of financial position as at 31 December 2020, and the statement of comprehensive income, statement of
changes in equity and statement of cash flows for the six month period ended on that date, and a summary of significant accounting policies
and other explanatory information. Based on our review, nothing has come to our attention that causes us to believe that the accompanying
interim financial statements of the Group do not present fairly, in all material respects the financial position of the Group as at 31 December
2020, and its financial performance and its cash flows for the six month period ended on that date, in accordance with New Zealand Equivalent
to International Accounting Standard 34: Interim Financial Reporting.
BASIS FOR CONCLUSION
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of
the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Statements section of our
report. We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements.
Other than in our capacity as auditor we have no relationship with, or interest in, the Company or any of its subsidiaries. Partners and
employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group.
DIRECTORS’ RESPONSIBILITY FOR THE INTERIM FINANCIAL STATEMENTS
The Directors of the Group are responsible, on behalf of the Group, for the preparation and fair presentation of the interim financial statements
in accordance with New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting and for such internal control
as the Directors determine is necessary to enable the preparation and fair presentation of the interim financial statements that are free from
material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance
with International Standards on Auditing (New Zealand) and consequently do not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on those interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Brent Penrose.
Chartered Accountants
Auckland
17 February 2021
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Chartered Accountants
Independent Auditor's Report
To the Shareholder of Fletcher Building Industries Limited
Report on the Financial Statements
Opinion
We have audited the financial statements of Fletcher Building Industries Limited (“FBIL” or “the Company”), on pages 2 to 11,
which comprise the balance sheet as at 30 June 2019, and the income statement, statement of comprehensive income, statement of
movements in equity and statement of cash flows for the year then ended, and notes to the financial statements including a
summary of significant accounting policies.
In our opinion, the financial statements on pages 2 to 11 present fairly, in all material respects, the financial position of FBIL as at
30 June 2019 and its financial performance and its cash flows for the year then ended in accordance with New Zealand
equivalents to International Financial Reporting Standards and International Financial Reporting Standards.
This report is made solely to the Company's shareholder. Our audit has been undertaken so that we might state to the Company's
shareholder those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's shareholder for
our audit work, for this report, or for the opinions we have formed.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with Professional and Ethical Standard 1 (revised) Code of Ethics for
Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interest in FBIL. Ernst & Young has provided tax advisory
and other assurance services to various companies within the Fletcher Building Limited Group (“the Group”). Partners and
employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the business of
the Group.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, but we do not provide a separate opinion on these matters. For the matter below, our description
of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the audit of the financial statements section of
the audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying
financial statements.
Accounting for investment in associate
Why significant How our audit addressed the key audit matter
The Company owns 20 per cent of the shares in Fletcher
Building Holdings New Zealand Limited (“FBHNZ”)
which currently holds all of the shares in Fletcher Building
In obtaining sufficient appropriate audit evidence, we:
► evaluated the basis of accounting and its appropriateness;
► recalculated the share of the equity accounted profits
including dividend receipts;
Fletcher Building Limited 2021 Interim Financial Results30
---
Fletcher Building Limited
Fletcher Building
Half Year Results to
31 December 2020
ROSS TAYLOR
—Chief Executive Officer
BEVAN MCKENZIE
—Chief Financial Officer
17 February 2021
Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothisdocumentandthe
verbalorwrittencommentsofanypersonpresentingit.
Thispresentationprovidesadditionalcommentonthe2021InterimFinancialResultsdated17February2021.Assuch,itshouldbereadinconjunctionwithandsubjecttotheexplanationsand
viewsgiveninthatdocument.Unlessotherwisespecified,allinformationisforthehalfyearended31December2020.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems.Anumberofnon-GAAPfinancial
measuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancialstatementsforthesix
monthsended31December2020.Youshouldnotconsideranyofthesestatementsinisolationfrom,orasasubstitutefortheinformationprovidedintheFinancialStatementsforthesix
monthsended31December2020,whichareavailableatwww.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,shareholdersnor
anyotherpersongivenanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessoftheinformationandtothemaximumextentpermittedbylaw,no
suchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arisingfromthispresentationoranyinformation
suppliedinconnectionwithit.
Thispresentationmaycontainforwardlookingstatements,thatisstatementsrelatedtofuture,notpast,eventsorothermatters.Forwardlookingstatementsmayincludestatementsregarding
ourintent,belieforcurrentexpectationsinconnectionwithourfutureoperatingorfinancialperformance,ormarketconditions.Suchforwardlookingstatementsarebasedoncurrent
expectations,estimatesandassumptionsandaresubjecttoanumberofrisksanduncertainties,includingmaterialadverseevents,significantone-offexpensesandotherunforeseeable
circumstances.Thereisnoassurancethatresultscontemplatedinanyoftheseprojectionsandforwardlookingstatementswillberealised.Actualresultsmaydiffermateriallyfromthose
projected.Exceptasrequiredbylaw,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonisunderanyobligationtoupdatethispresentationatanytimeafteritsreleaseor
toprovidefurtherinformationaboutFletcherBuilding.
Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceorarecommendation.
2
Fletcher Building Limited Half Year Results Presentation | © February 2021
Fletcher Building Limited
Agenda
1. ResultsOverview Ross Taylor
2. New Zealand Operations Ross Taylor
3. Australia Operations Ross Taylor
4.Financial Results Bevan McKenzie
5.Outlook Ross Taylor
Strong HY21 performance
2.5 years into strategy -delivering performance and earnings growth
➢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
HY21
FY2021
PERFORMANCE
AND GROWTH
4
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢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 margin
1
improvement to 11.3% (from 8.8%)
➢Australia EBIT margin
1
improvement to 3.7% (from 2.4%)
➢c85% of HY21 EBIT
1
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 $86m relating to
final phase of restructuring costs and Rocla impairment
HY21 results at a glance
Strong earnings growth, improved profitability and margins
5
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT (before sig items) ($m)
EBIT Margin
1
(%)
5.5%
8.1%
HY20HY21
3,961
3,987
HY20HY21
219
323
HY20HY21
Revenue ($m)
82
121
HY20HY21
Reported Net Earnings($m)
HY21 trading highlights
+1%
+48%
+47%
1
Before significant items
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
+260bps
HY21 results at a glance
Strong cash flows, net debt reduced
6
Fletcher Building Limited Half Year Results Presentation | © February 2021
Trading Cash Flow
2
($m)
Net Debt ($m)
497
269
FY20HY21
➢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: $1.5bn liquidity, leverage 0.4x
➢Leverage currently below target range of 1.0x-2.0x: expect to move
to lower end of range once investment in WWB plant and legacy
construction projects are complete
(12)
416
HY20HY21
132
516
HY20HY21
Free Cash Flow
1
($m)
Leverage (Net Debt/EBITDA)
HY21 trading highlights
1
Free cash flow from operations excluding legacy
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
0.7x
0.4x
HY20HY21
3
HY21 results at a glance
Interim dividend of 12.0 cents per share declared
7
12.8
23.7
HY20HY21
Fletcher Building Limited Half Year Results Presentation | © February 2021
Interim dividend
+85%
1
Available cash flow = Free cash flow less cash interest
➢Policy to pay dividends in the range of 50%
to 75% of net earnings before significant
items and having regard to available cash
flow
1
➢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
EPS (cps)
EPS (before sig items) (cps)
9.8
14.7
HY20HY21
+50%
12.0cps
HY20: nil
Continued resolute focus on safety
8
Serious Injuries
2
Total Recordable Injury
Frequency Rate
1
Safety
1
TRIFR = Total no. of recorded injuries per million man hours worked. Does not include Restricted Work Injuries
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
10.7
8.5
6.8
6.0
6.4
6.7
6.9
5.1
5.0
5.7
6.0
FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20HY21
33
21
20
8
3
FY17FY18FY19FY20HY21
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢‘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)
Sustainability
Progress made and improved recognition
9
Carbon (CO
2
) Emissions
1,238
1,147
1,132
603
FY18FY19FY20HY21
(thousand Tonnes)
1
1
Carbon data excludes emissions from the International division which was divested in FY19
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢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
Fletcher Building Limited
Agenda
1. ResultsOverview Ross Taylor
2. New Zealand Operations Ross Taylor
3. Australia Operations Ross Taylor
4.Financial Results Bevan McKenzie
5.Outlook Ross Taylor
3.1
3.3
HY20HY21
New Zealand Market
Residential supportive, solid Infrastructure pipeline, Commercial softer
11
Fletcher Building Limited Half Year Results Presentation | © February 2021
•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
NZ Residential
NZ Commercial Work Put in Place ($b)
4.8
4.6
HY20HY21F
Floor Area Consented (Mm
2
)
8.3
8.5
HY20HY21F
+3%
+8%
Work Put in Place ($b)
-5%
Building Products
HY21 results overview
12
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT ($m)
EBIT Margin (%)
10.2%
14.8%
HY20HY21
➢Revenue up 6%: good demand from residential finishing trades and
subdivision work, plus share gains and improved pricing disciplines
➢EBIT up 53% due to margin improvement of 460bps: operating
efficiency and better contribution from Steel and Pipes
➢Strong cash flows from working capital control, esp. Steel; some
inventory rebuild expected in 2H21
➢Operational highlights:
➢Expansion into new segments and categories, e.g. Pipes
businesses into the electrical space
➢Increased market share in several businesses as customers
show preference for NZ made product
➢Focus on Pipes and Steel businesses delivering improvement
➢WWB plant build progressing to plan
645
683
HY20HY21
66
101
HY20HY21
Gross Revenue ($m)
54
152
HY20HY21
Trading cash flow ($m)
Trading performance and operating highlights
Distribution
HY21 results overview
13
Trading performance and operating highlights
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT ($m)
EBIT Margin (%)
6.1%
7.0%
HY20HY21
➢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
824
852
HY20HY21
50
60
HY20HY21
Gross Revenue ($m)
64
68
HY20HY21
Trading cash flow ($m)
Concrete
HY21 results overview
14
Trading performance and operating highlights
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT
1
($m)
EBIT Margin
1
(%)
12.2%
14.4%
HY20HY21
➢Revenue up 7%: robust demand across all key segments, share gains
in cement, improved pricing in ready-mix and aggregates
➢EBIT up 27% through margin improvement of 220bps:
manufacturing and supply chain efficiency, partly offset by costs to
prepare GBC Tyre Derived Fuel project
➢Strong cash conversion, expect some inventory rebuild in 2H21
➢Operational highlights:
➢Tyre Derived Fuel project: commissioning to commence in
Feb-21
➢Sustained focus on carbon reduction: trial batch of pozzolanic
cement produced, commercial testing underway
403
430
HY20HY21
49
62
HY20HY21
Gross Revenue ($m)
49
88
HY20HY21
Trading cash flow ($m)
1
Before significant items
165
223
25
35
(2)
HY20 EBITMarket Volume,
Share & Price
Net Cost
Benefit
OtherHY21 EBIT
NZ Core (Building Products, Distribution, Concrete)
Improvement driven by solid volumes, pricing, lower costs
15
Fletcher Building Limited Half Year Results Presentation | © February 2021
NZ Core EBIT
1
: HY20 to HY21 ($m)
+35%
NZ Core EBIT Margin
1
: HY18 to HY21 (%)
10.7%
10.1%
8.8%
11.3%
HY18HY19HY20HY21
2
2
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
16
Trading performance and operating highlights
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT ($m)
EBIT Margin (%)
15.6%
17.4%
HY20HY21
➢Revenue up 59%: unit sales increased to 515 (vs. 293 in HY20) on
strong demand in both Auckland and Christchurch; average price of
units sold 5% higher
➢EBIT up 77%: strong volumes and favourable mix in typologies sold
➢Cash flow strong on high sales volumes and reduction in housing
stock levels, inventory rebuild likely in 2H21
➢Operational highlights:
➢Strong pipeline of c3,600 future lots under control, of which
c900 for delivery in FY22
➢Clever Core panelised volumes ramping up (34 in HY21), sales
to third parties targeted for FY22
➢Dedicated apartments team established to scale this business
224
356
HY20HY21
35
62
HY20HY21
Gross Revenue ($m)
35
112
HY20HY21
Trading cash flow ($m)
35
62
37
(9)
(1)
HY20 EBITHousing Volume &
Margin
Land DevelopmentOtherHY21 EBIT
Residential and Development
Residential earnings weighted to first half, Land Dev’tmainly second half
17
Fletcher Building Limited Half Year Results Presentation | © February 2021
Residential & Development EBIT: HY20 to HY21 ($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
Construction
HY21 results overview
18
Trading performance and focus areas
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT Margin
1
(%)
1.8%
2.0%
HY20HY21
➢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 $30m inflow in HY21)
➢Operational Highlights:
➢Continued rebuild of forward order book (see slide 19)
➢Legacy: Commercial Bay and Grey Base Hospital handed over
to client, work on infrastructure projects in line with revised
completion dates post-COVID-19
➢Ongoing deployment of ‘Fletcher One’ –standardised
governance and management framework
774
651
HY20HY21
14
13
HY20HY21
Gross Revenue ($m)
(152)
(80)
HY20HY21
Trading cash flow ($m)
1
Before significant items
EBIT
1
($m)
Construction
Continue to reshape order book
Work to Complete ($b)
19
0.6
0.4
2.4
2.7
0.5
FY20HY21
Legacy
projects
Secured forward
order book
Fletcher Building Limited Half Year Results Presentation | © February 2021
Key projects under
exclusive negotiation
Profile of Forward Work
$3.2b
➢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$2.0b in FY23+ (includes 10 year Watercare contract)
➢Targeting 3-5% EBIT margin on secured forward order book and
work won in-year
Fletcher Building Limited
Agenda
1. ResultsOverview Ross Taylor
2. New Zealand Operations Ross Taylor
3. Australia Operations Ross Taylor
4.Financial Results Bevan McKenzie
5.Outlook Ross Taylor
Market outlook
Australia residential solid with softer commercial and infrastructure
21
Fletcher Building Limited Half Year Results Presentation | © February 2021
AU Residential
AU Commercial Work Done (A$b)
•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
Approvals (#)
-5%
37.9
36.2
HY20HY21F
25.4
23.4
HY20HY21F
87k
99k
HY20HY21
+13%
Source: BIS Oxford, ABS
Work Done (A$b)
-8%
Australia
HY21 results overview
22
Trading performance and operating highlights
Fletcher Building Limited Half Year Results Presentation | © February 2021
EBIT
1
($m)
EBIT Margin
1
(%)
2.4%
3.7%
HY20HY21
➢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; $6m benefit from lower depreciation on
Rocla (held for sale)
➢Trading cash flow driven by material improvements in inventory and
debtors management
➢Operational highlights:
➢Tradelink sales in key SME segment +4% YOY, and own brand
penetration now >25% of front of wall sales
➢Laminex digital sales now 27% of all transactions
➢Insulation fully consolidated onto single manufacturing site
➢Stramit share growth in higher-margin sheds segment
1,453
1,390
HY20HY21
35
51
HY20HY21
Gross Revenue ($m)
(64)
52
HY20HY21
Trading cash flow ($m)
1
Before significant items
35
51
42
22
4
HY20 EBITMarket Volume,
Share & Price
Net Cost
Benefit
OtherHY21 EBIT
Australia
Material benefits from cost-out, partly offset by impact of pipes market
23
Fletcher Building Limited Half Year Results Presentation | © February 2021
Australia EBIT
1
: HY20 to HY21 ($m)
+46%
AU EBIT Margin
1
: HY18 to HY21 (%)
4.1%
2.7%
2.4%
3.7%
HY18HY19HY20HY21
1
Before significant items
2
HY18 and HY19 adjusted for IFRS16 to be like-for-like with HY20 and HY21
2
2
Pipes (16)
Other BU’s (6)
Fletcher Building Limited
Agenda
1. ResultsOverview Ross Taylor
2. New Zealand Operations Ross Taylor
3. Australia Operations Ross Taylor
4.Financial Results Bevan McKenzie
5.Outlook Ross Taylor
Income statement
Strong result, first half EBIT before significant items ahead of guidance
25
Fletcher Building Limited Half Year Results Presentation | © February 2021
NZ$m
Dec 2019
6 months
Dec 2020
6 months
Change
%
Revenue3,9613,9871%
EBITDA40250325%
EBIT before significant items21932347%
Significant items(35)(86)(146%)
EBIT18423729%
Lease interest expense(35)(33)6%
Funding costs(35)(23)34%
Tax expense(28)(57)(104%)
Non-controlling interests(4)(3)25%
Net earnings8212148%
Basic earningsper share (cents)9.814.74.9cps
Dividends per share (cents)0.012.012.0cps
HY21 EBIT
Improvement underpinned by operating leverage on lower cost base
26
219
323
23
87
(6)
HY20 EBITMarket Volume, Share & PriceNet Cost BenefitOtherHY21 EBIT
Fletcher Building Limited Half Year Results Presentation | © February 2021
NZ Core +25
Australia (22)
Residential +37
Dev’t, FCC (17)
NZ Core +35
Australia +42
Resi, Dev’t, FCC, Corp +10
1
Before significant items.
EBIT
1
: HY20 to HY21 (NZ$m)
Significant items
Restructuring costs lower than prior forecast, Rocla impaired
27
Fletcher Building Limited Half Year Results Presentation | © February 2021
FY21 significant items (Profit and Loss Charges)
NZ$m
FY21
Prior forecastHY212H21
FY21
Updated
Restructuring9035c30c65
Rocla Impairment-51-51
Total9086c30c115
➢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 $150m+ represents rapid
payback on cash costs
➢Rocla impairment reflects updated assessment of likely disposal
proceeds; excludes reclassification of Foreign Currency Translation
Reserve loss (taken on disposal, cNZD30m)
FY21 significant items (Cash Flow)
NZ$m
FY21
Prior forecastHY212H21
FY21
Updated
Restructuring14354c40c95
Cash flow
Strong half year trading and controlled working capital
28
Fletcher Building Limited Half Year Results Presentation | © February 2021
NZ$m
Dec 2019
6 months
Dec 2020
6 months
Change
$m
EBIT before significant items219323104
Depreciationand amortisation183180(3)
Lease principal payments and lease interest paid(119)(124)(5)
Provisions and other(5)1924
Trading cash flow before working capitalmovements278398120
Working capital movements(146)118264
Trading cash flow excluding legacy projects and significant items132516384
Legacy projects cash flow(162)(109)53
Significant items cash flow(24)(34)(10)
Trading cashflow(54)373427
Add: Lease principal payments84917
Less: cash tax paid(1)(3)(2)
Less: funding costs paid(34)(33)1
Cash flows from operatingactivities(5)428433
Free Cash Flow
1
excluding legacy projects(12)416428
Note: Legacy Construction cash flow includes Building and Infrastructure projects
Free Cash Flow = Trading cash flow less capex less cash tax, excluding M+A activities
Working capital
Well positioned, some inventory rebuild expected in 2H21
29
Fletcher Building Limited Half Year Results Presentation | © February 2021
Key working capital metrics (days)
As at
Dec 2019
As at
Dec 2020
Change
(days)
Debtor Days44.039.74.3
Inventory Days75.569.85.7
Payables Days41.639.2(2.4)
Materials and Distribution Total Cycle77.970.37.6
Cash flow working capital movements
NZ$m
Dec 2019
6 months
Dec 2020
6 months
Change
$m
Residential and Development-5050
Construction excluding legacy projects(15)621
Materials and Distribution Divisions:
•Debtors9264(28)
•Inventories(34)4276
•Creditors(189)(44)145
Cash flow working capital movements excluding legacy(146)118264
Capital expenditure
Balanced between maintenance and strategic investment
30
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢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$100m FY23
HY21 Capex (NZ$m)
NZ$m
NZ Core (ex WWB)26
WWB31
Australia9
Resi, FCC & Corp16
Total82
Less: Proceeds on disposal of PPE(14)
Net Capex68
Net debt
Reduction through strong trading cash flows
31
Net Debt: Jun-20 to Dec-20 (NZ$m)
1
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
497
269
516
109
68
33
44
34
Net Debt
Jun-20
Legacy projectsCapexFunding costsOtherTrading cashSignificant items
trading cash
Net Debt
Dec-20
Fletcher Building Limited Half Year Results Presentation | © February 2021
Leverage
Targeting lower end of 1.0x-2.0x range
32
➢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$400m in WWB plant and legacy
construction cash flows
➢Continued preference for conservative balance sheet metrics
Leverage (Net Debt / EBITDA)
Target range
2.0x
1.0x
1
0.7x
0.4x
HY20HY21
Fletcher Building Limited Half Year Results Presentation | © February 2021
1
Due to material impact of FX movements on balance sheet value of debt in recent months, the Group will use hedged value of
debt in its leverage calculation –i.e. Net Debt includes impact of CCIRS derivatives. HY20 has been restated for the historic impact
of debt hedging on leverage ratio (c0.1x)
33
100100
57
149
459
525
400
9
14
FY21FY22FY23FY24-25FY26+
Capital NotesUSPPBank SyndicateOther
Debt Maturity Profile at Dec-20 (NZ$m)
➢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 $350m USPP in Jul-20
NZ$m
Facilities
31 Dec 20
Drawings
31 Dec 20
Syndicate925-
USPP459459
Capital Notes406406
Other2222
Total1,812887
Fletcher Building Limited Half Year Results Presentation | © February 2021
Funding
Strong funding profile and liquidity position
Dividend
Interim dividend of 12.0 cents per share to be paid in March
34
nil
12.0
HY20HY21
Fletcher Building Limited Half Year Results Presentation | © February 2021
Interim dividend (cps)
1
Pay-out ratio is expressed as a percentage of Net Earnings excluding Significant Items.
➢Interim Dividend of 12.0 cents per share, to be paid on 24 March 2021
➢50% pay-out ratio
1
➢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
Summary
2.5 years into strategy –on track to deliver financial targets
35
➢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 ROFE
1
of 15% in FY21
well ahead of FY23 target
➢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)
➢$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
Cost Reset and MarginCash Flow & CapexCapital Structure
Fletcher Building Limited Half Year Results Presentation | © February 2021
1
Return On Funds Employed
Fletcher Building Limited
Agenda
1. ResultsOverview Ross Taylor
2. New Zealand Operations Ross Taylor
3. Australia Operations Ross Taylor
4.Financial Results Bevan McKenzie
5.Outlook Ross Taylor
Second half FY21 outlook
37
➢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
➢January and early February trading has seen a slightly slower ramp-up post the New Year break
➢Managing some supply chain disruption; remains key to meeting market demand
➢Market outlook assumes no material impact from COVID-19
Earnings
Market
outlook
➢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
➢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
Fletcher Building Limited Half Year Results Presentation | © February 2021
➢Further update on market activity and trading performance will be provided at the investor day in May
Fletcher Building Limited
Appendix
Divisional Revenue Exposure by Sector
Building Products
Distribution
Concrete
Australia
Divisional revenue exposure and FB revenue by market
39
Resi, 46%Com, 26%Infra, 28%
Fletcher Building Limited Half Year Results Presentation | © February 2021
Resi, 81%Com, 19%
Resi, 52%Com, 21%Infra, 27%
Resi, 60%Com, 28%
Infra,
12%
36%
15%
17%
19%
9%
4%
NZ
Residential
NZ
Commercial
NZ
Infrastructure
Total FB Revenue by Market (%)
AU
Infrastructure
AU
Commercial
AU
Residential
---
Distribution Notice
Page | 1
Section 1: Issuer information
Name of issuer Fletcher Building Limited
Financial product name/description Ordinary Shares
NZX ticker code FBU
ISIN NZFBUE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies No
Record date 25/02/2021
Ex-Date (one business day before the Record Date) 24/02/2021
Payment date (and allotment date for DRP) 24/03/2021
Total monies associated with the distribution $98,910,770 (824,256,416 shares @ $0.12 per share).
Number of shares is as at the date of this form.
Source of distribution (for example, retained
earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.12000000
Gross taxable amount $0.12000000
Total cash distribution $0.12000000
Excluded amount (applicable to listed PIEs) N/A – Not a listed PIE
Supplementary distribution amount N/A
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please state
imputation rate as % applied
N/A
Imputation tax credits per financial product N/A
Resident Withholding Tax per financial product $0.03960000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Start date and end date for determining market
price for DRP
Date strike price to be announced (if not available
at this time)
Specify source of financial products to be issued
under DRP programme (new issue or to be bought
F l e t c h e r B u i l d i n g L i m i t e d Page | 2
on market)
DRP strike price per financial product
Last date to submit a participation notice for this
distribution in accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person authorised to make this
announcement
Chris Reid, Company Secretary
Contact person for this announcement Aleida White, Head of Investor Relations
Contact phone number +64 21 155 8837
Contact email address investor.relations@fbu.com
Date of release through MAP 17/02/2021
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.