New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Negative residential indicators continue to weigh on Fletcher Building's (FBU) share price</li><li>FBU's 12 month forward P/E of 8.1x, almost two standard deviations below its long run average and a significant discount to its Australian peers, provides a wide margin of safety in our view</li><li>With the current cycle half a year through and valuation metrics at historic lows, we retain our positive 12 month view on FBU</li></ul>

Negative residential indicators continue to weigh on Fletcher Building's (FBU) share priceFBU's 12 month forward P/E of 8.1x, almost two standard deviations below its long run average and a significant discount to its Australian peers, provides a wide margin of safety in our viewWith the current cycle half a year through and valuation metrics at historic lows, we retain our positive 12 month view on FBU

<div><ul><li>NZICC provision an unwanted Xmas present: Complexity relating to water damage and general cost inflation has seen the cost to complete the fire-damaged NZICC rise above insurance cover</li><li>Back to the future with wood: FBU agreed to acquire wood processing and renewable fuel businesses Waipapa Pines Limited (WPL) for NZ$97m (ex. earn-outs) which equates to 6.7x last-12-months EBIT</li><li>Guidance unchanged but upside is moderating: 1H23 volumes are in line with expectations, with softer civils broadly offset by residential finishing trades and commercial</li></ul></div>

NZICC provision an unwanted Xmas present: Complexity relating to water damage and general cost inflation has seen the cost to complete the fire-damaged NZICC rise above insurance coverBack to the future with wood: FBU agreed to acquire wood processing and renewable fuel businesses Waipapa Pines Limited (WPL) for NZ$97m (ex. earn-outs) which equates to 6.7x last-12-months EBITGuidance unchanged but upside is moderating: 1H23 volumes are in line with expectations, with softer civils broadly offset by residential finishing trades and commercial

<ul><li>Fletcher Building (FBU) has provided an update on provisioning for the NZ International Convention Centre (NZICC) and a FY23 trading update.</li><li>The key disappoint in today’s announcement is the higher provision for completion of the NZICC, that said the end of the projects is now in sight with completion expected late 2023/early 2024</li><li>Assuming FBU’s P/E expands in an earnings downturn, FBU’s share price is expecting a 40% decline in EBIT based on a peak P/E of 15x.</li></ul>

Fletcher Building (FBU) has provided an update on provisioning for the NZ International Convention Centre (NZICC) and a FY23 trading update.The key disappoint in today’s announcement is the higher provision for completion of the NZICC, that said the end of the projects is now in sight with completion expected late 2023/early 2024Assuming FBU’s P/E expands in an earnings downturn, FBU’s share price is expecting a 40% decline in EBIT based on a peak P/E of 15x.

Fletcher Building: Convention Centre Provision and Trading Update

<ul><li>Fletcher Building (FBU) slightly lifted it FY23 earnings guidance at its annual shareholder meeting (ASM).</li><li>Trading comments highlighted demand has remained broadly in line with 2H22 run rates and forward indicators suggest volumes will remain at current levels over the balance of FY23</li><li>FBU continues to trade on undemanding valuation metrics with a 12 month forward P/E of 8.2x</li></ul>

Fletcher Building (FBU) slightly lifted it FY23 earnings guidance at its annual shareholder meeting (ASM).Trading comments highlighted demand has remained broadly in line with 2H22 run rates and forward indicators suggest volumes will remain at current levels over the balance of FY23FBU continues to trade on undemanding valuation metrics with a 12 month forward P/E of 8.2x

<ul><li>Fletcher Building (FBU) has provided a trading update and modestly lifted its FY23 earnings guidance at its Annual General Meeting today</li><li>FBU’s guidance for FY23 EBIT is now “NZ$855m or better” vs. Visible Alpha consensus of NZ$841m and our estimate of NZ$839m</li><li>Group earnings and cash flow are expected to be weighted to the second half partly reflecting settlement timing in the residential division</li></ul>

Fletcher Building (FBU) has provided a trading update and modestly lifted its FY23 earnings guidance at its Annual General Meeting todayFBU’s guidance for FY23 EBIT is now “NZ$855m or better” vs. Visible Alpha consensus of NZ$841m and our estimate of NZ$839mGroup earnings and cash flow are expected to be weighted to the second half partly reflecting settlement timing in the residential division

Fletcher Building (FBU.NZ): AGM Trading Update - FY23 Tracking to Plan

Australia

Fletcher Building Limited manufactures, distributes, and sells materials for the building industry including wood fiber-based products, cement and aggregates, plasterboard, laminates, lumber, and aluminium extrusion. The Company operates primarily in New Zealand and Australia.

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Fletcher Building (FBU AU)

Fletcher Building: Going Cycling

Negative residential indicators continue to weigh on Fletcher Building's (FBU) share price; Prior earnings down cycles lasted 17 months on average,...

Forsyth Barr

Fletcher Building: Season's Provisioning

FBU unwrapped its forth provision on the beleaguered New Zealand International Convention Centre (NZICC) project after a two year hiatus; Outside...

Forsyth Barr

Fletcher Building: Convention Centre Provision and Trading Update

Fletcher Building (FBU) has provided an update on provisioning for the NZ International Convention Centre (NZICC) and a FY23 trading update; cost...

Forsyth Barr

Fletcher Building: Building to Plan

Fletcher Building (FBU) slightly lifted it FY23 earnings guidance at its annual shareholder meeting (ASM); Trading comments highlighted demand has...

Forsyth Barr

Fletcher Building (FBU.NZ): AGM Trading Update - FY23 Tracking to Plan

Fletcher Building (FBU) has provided a trading update and modestly lifted its FY23 earnings guidance at its Annual General Meeting today; FBU’s...

Forsyth Barr

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