FLE122 Annual Report 2018

Our Year in Review Strategy

Our Leadership

Divisions

Business Sustainability

Financials and Governance

BACK HOME

Residential and Development

Building Products

Distribution

Steel

Concrete

Construction Australia

Formica and Roof Tile Group

Residential and Development Financial Summary

Residential and Development FY18 Revenue Weighted Sector Exposure

Year ended 30 June

2018 NZ$m

2017 NZ$m

Change NZ$m

Change %

19%

Gross revenue

575

420

155

37%

External revenue

575

420

155

37%

EBIT

136

130

6

5%

Funds

604

547

57

10%

Trading cashflow

109

(49)

158

NM

81%

Residential Infrastructure/other

FUTURE FOCUS The division’s vertically integrated model continues to enable it to effectively source and develop land in desirable locations, providing a good pipeline of developments to bring to market. Its aim is to deliver 1,000 dwellings a year, subject to market conditions. Residential continues to see strong demand for quality homes, at the right price point, and has 3,707 units on its balance sheet, with a further 1,272 units under unconditional agreements, to be delivered over the next five years. As one of the largest home builders in New Zealand, the division can make a significant contribution to the Government's KiwiBuild programme support implementation during FY19. Following successful trials in FY18, a new panelisation plant in Auckland will be commissioned, which will allow Fletcher Living to deliver homes more efficiently in a supply constrained market. It is anticipated that the new plant will initially deliver an additional 300 homes per year to support Fletcher Living’s pipeline, with the opportunity to then extend supply to Government agencies and other group home builders. and will continue to engage with Government on opportunities to

We will leverage our end-to-end relationship with other Fletcher Building businesses, our proven ability to innovate and our unique position as both a residential and land developer to deliver housing and community solutions that set us apart from our competitors.

Steve Evans Chief Executive Residential and Development

Fletcher Living Whenuapai

31 Fletcher Building Limited Annual Report 2018

Made with FlippingBook - professional solution for displaying marketing and sales documents online