Ann: GENERAL: FBI: FB announces new divisional structure and executive

• Release Date: 02/02/16 09:43
• Summary: GENERAL: FBI: FB announces new divisional structure and executive
• Price Sensitive: No
• Download Document  6.4KB

					FBI
02/02/2016 09:43
GENERAL
NOT PRICE SENSITIVE
REL: 0943 HRS Fletcher Building Industries Limited

GENERAL: FBI: FB announces new divisional structure and executive

Auckland, 2 February 2016 - Fletcher Building Limited today announced changes
to its divisional structure and executive officers. The changes follow the
evolution of Fletcher Building's business portfolio, including the completion
of the sale of Rocla Quarry Products last week and the acquisition of Higgins
announced earlier today.

The new structure will see Fletcher Building organised into five divisions,
centred on the manufacture of building products, distribution, residential
and land development, construction, and the group's international businesses.
The five new divisions are:

Building Products: manufacture of light and heavy building materials in New
Zealand and Australia. This division will be led by Matt Crockett, who is
currently chief executive of the Heavy Building Products division.

International: encompasses Fletcher Building's Laminex, Formica, and Roof
Tiles businesses. Francisco Irazusta has been appointed chief executive of
this division.

Distribution: building materials, plumbing supplies and steel distribution
activities in New Zealand and Australia. Dean Fradgley will continue as chief
executive of this division, which will also include the Stramit and Tasman
Sinkware businesses in Australia, and Dimond Roofing in New Zealand.

Residential and Land Development: residential development business in New
Zealand together with the development of existing non-residential land
holdings. Steve Evans, currently chief operating officer of Fletcher Living,
has been appointed chief executive of this division.

Construction: building and engineering construction activities in New Zealand
and the South Pacific, together with the Higgins contracting businesses in
New Zealand and Fiji. Graham Darlow will continue as chief executive of this
division.

In addition to these divisional appointments, it is also announced that Mr
Lee Finney has been appointed to the new role of Chief Transformation
Officer. In this role, Lee will have responsibility for all of Fletcher
Building's centres of excellence including the marketing, operations
excellence and procurement functions. He will also be responsible for the
acceleration of the growth and cost reduction initiatives and will lead a
core team of business transformation specialists.

Lee has extensive experience in transforming the operational performance of
international businesses, most recently with Molson Coors where he has been
Chief Supply Officer for the Canadian and European divisions since 2010.
Prior to that Lee held senior supply chain leadership roles for Goodman
Fielder in New Zealand, and for Campbell's in Europe and the USA. Lee has an
MBA (Warwick, UK) and has completed the Advanced Management Program (INSEAD,
France).

As a result of these changes, the role of chief executive Laminates & Panels
which was based in Melbourne has been disestablished, and Paul Zuckerman has
decided to leave Fletcher Building.

Fletcher Building chief executive officer Mark Adamson said the new
divisional structure reflected the changes to the business portfolio, with a
number of businesses divested over the past two years and the acquisiton of
Higgins announced today.

"We have made significant progress in reshaping our portfolio, with a focus
on divesting non-core businesses and investing where we see the strongest
opportunity to further grow earnings. The new structure we have annouced
today accommodates the changes to the portfolio. At the same time it will
allow like activities to be grouped together and operating efficiencies to be
pursued.

"Under the new structure, Matt Crockett will have responsibility for all of
our core manufacturing operations in New Zealand and Australia. Dean Fradgley
will have all distribution activities reporting into him. It has become
increasingly clear that some of our businesses that were seen as
manufacturing operations are really driven by end-to-end service
propositions, with less manufacturing input and greater value provided by the
service offering. As such, it makes sense to group these activities within
the distribution division.

"We have also taken the opportunity to combine our international businesses
under one executive. Francisco will have responsibility for the Laminex and
Formica businesses as well as our Roof Tiles business. Given their global
span of operations, there is a clear benefit in having these businesses
managed under one senior leader.

"Our residential development business has grown substantially, and we expect
to continue to expand earnings from this activity over the next several
years. In addition, we have identified the opportunity to further develop our
existing commercial and industrial land holdings, and Steve Evans will pick
up responsibilty for this in his new role.

"With the creation of the Chief Transformation Officer role, we will have a
dedicated senior executive who will be focussed on accelerating the growth
and cost reduction initiatives. Building on the FBUnite transformation
programme, we have identified significant further opportunity to eliminate
inefficiencies and improve our sales and marketing capabilities. Lee will be
responsible for delivering on these opportunities", Mr Adamson said.

A summary of the new divisional structure and the business composition of
each division can be found in Appendix One.

Financial results for the half year to 31 December 2015 will be reported on
the basis of the new divisional structure. Prior period figures have been
prepared on the basis of the new divisional structure and are summarised in
Appendix Two.

ENDS

For further information contact:

Investors:

Philip King
Group General Manager,
Investor Relations & Capital Markets
Phone:  + 64 9 525 9043
Mobile:   + 64 27 444 0203
Email: [email protected]

Media:

Shannon Huse Caldwell
External Communications Manager
Phone: +64 9 525 9085
Mobile: +64 27 807 2933
Email: [email protected]

Fletcher Building is an integrated manufacturer and distributor of
infrastructure and building products, and a construction company. From the
smallest grain of sand to projects of great scale, we make, deliver and build
to improve infrastructure, build communities and strengthen economies. We
have 19,000 people working in 25 business groups in 45 countries. For more
visit www.fbu.com
End CA:00277110 For:FBI    Type:GENERAL    Time:2016-02-02 09:43:45