[Non-English content ] I am Bruce Hassall, Chair of your company. Good afternoon from New Zealand, ladies and gentlemen. On behalf of the Board, it is my pleasure to welcome you to Fletcher Building's 2021 Annual Shareholders Meeting. Today's meeting is being held online. This allows shareholders, proxies, and guests to attend the meeting virtually. I sincerely regret that yet again, we find ourselves unable to meet in person owing to the recent COVID developments. All attendees can watch a live webcast of the meeting and read the associated company documents. Shareholders and proxies have the ability to ask questions and submit votes. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at any time. Type your question into the field and press send. Your question will be immediately submitted.
Should you require any assistance, you can type your query, and one of the Computershare team will assist you with the chat function and reply to your query. Alternatively, you can call Computershare directly on the numbers noted in your online meeting guide. Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated, or if we receive multiple questions on one topic, they may be amalgamated together. Finally, if for some technical reasons we don't have the opportunity to answer your question, we will answer them in due course via email. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open the voting for all resolutions.
At that time, if you are eligible vote at this meeting, you will be able to cast your vote under the Vote tab. Once the voting is open, the resolutions will allow votes to be submitted. To vote, simply select your voting direction from the options shown on screen. You can vote for all resolutions at once or by each resolution. Your vote has been cast when the tick appears. To change your vote, simply select Change Your Vote. You have the ability to change your vote up until the time I declare voting closed. I now declare voting open on all items of business. The resolutions will now be open in the Vote tab. Please submit your votes at any time. I will give you a warning before I move to close voting. I will now introduce my fellow directors. On my right, your left, we have Doug McKay.
On my left, we have Cathy Quinn and Rob McDonald. Joining us via video conference are Barbara Chapman, Martin Brydon joins us from Perth, and Peter Crowley from our Brisbane offices in Banyo. Your CEO, Ross Taylor, also joins us via video conference from Sydney. Back here in Auckland, Group General Counsel and Company Secretary Andrew Clarke is seated off camera to ensure we maintain the required social distancing. They also have in attendance online members of our leadership team, our lawyers, Bell Gully, and our auditors, EY. Moving on to the agenda. Today's meeting will commence with addresses from me as chair and from Ross Taylor, CEO. We'll then move on to the resolutions that are outlined in the notice of meeting. The resolutions will be decided by poll. Questions on the four resolutions will be dealt with together and before they are voted on.
At the conclusion of the formal business, we'll then take the opportunity for your general questions. We reserve the right not to address questions that, in my opinion, are not reasonable in the context of this meeting or that repeat previous questions. Thank you also to the shareholders who have submitted their questions in advance. Ross and I will speak to the more frequently asked ones in our addresses. On behalf of the board, I'm pleased to report that Fletcher Building delivered a very strong set of financial results in FY 2021. Over the last three years, the board has been very focused on driving our strategy to lift performance. I'm pleased with what has been achieved so far. It demonstrates we are on the right track and are achieving key milestones for continued performance and the future success of our business.
The result is testament to the leadership of the executive team and the focus from all our people, particularly amongst the uncertainties of COVID. The ability of our teams to shift tack rapidly through this time has been noteworthy, and we thank everyone across Fletcher Building for their very hard work. Group revenue for the year was NZD 8.1 billion. In New Zealand, our exposure to the strong residential market had a positive impact, while in Australia, the effects of a slower commercial and civil market was a slight headwind. Pleasingly, EBIT before significant items was NZD 669 million. Net earnings for the year were NZD 305 million. This included NZD 128 million of significant items from the impairment of Rocklea and the last phase of restructuring costs. The strong performance across all dimensions of cash management through FY21 was very pleasing.
Cash flows from operating activities were NZD 889 million. Against this Backdrop, our confidence in the outlook, the board considered that a buyback program was an efficient way of returning capital to shareholders, and the board was pleased to pay total dividends of NZD 0.30 per share for the financial year. The board is very focused on driving strong outcomes across a range of ESG measures and driving a performance culture, in particular on safety, sustainability, and innovation. We acknowledge that cultural transformation on the many fronts, which I will now outline, can take time, but we are making really solid progress. We believe that embedding a safety culture across the group is critical. Our safety goal is a future where zero injuries every day is possible and where everyone comes home from work safely.
We are continuing to make good progress with 85% of our sites injury-free and our overall injury rates dropping to just under 5.0 for the year. It's worth pointing out this is the lowest level ever. Development and training on safety is across all levels of our business, which has the aim of both lifting the skills and changing the culture of our organization. On sustainability, we continue to make good progress towards our 30% by 2030 carbon emissions reduction goal. Sustainable carbon emissions are now running at 5% below our 2018 levels. Our group-wide carbon reduction roadmap sets out ongoing projects that are key to achieving the overall reduction goal. In this vein, we are aligned with the government's transition to a low-emissions economy. We are keeping abreast of the ETS challenges and assessing the impact on our business to ensure the best possible outcomes.
We do have some general concerns about any ETS changes or carbon policy that could discourage further investment in reducing carbon emissions and incentivize imports of more carbon-intensive products. We do not believe that it is beneficial to New Zealand Inc. or to global carbon emissions to move manufacturing from New Zealand to overseas competitors. These are important topics that we continue to proactively engage with government about. Finally, on this slide, the board is focused on continuing to drive an innovation mindset and culture, which is central to achieving our goals of ongoing performance and growth. This means advocating investment in all parts of the value chain, championing an environment for the continual generation of new ideas and concepts, as well as looking at major trends globally and bringing those opportunities in.
Ongoing investments in technology and data will further enhance the strength of our business and is critical for future success, driving improved outcomes. Importantly, this focus is aligned to driving meaningful outcomes for our people and customers. As a board, we value the importance of investment in our talented and diverse workforces through training programs and providing continual career development opportunities. We are driving the improvement of diversity and inclusion of our people by fostering an inclusive culture, having greater woman representation and more ethnicity in leadership. We have targets in place to deliver initiatives, including increasing the number of women in operational roles year on year. We are also driving gender pay parity with action plans in place to close the gap. Ultimately, the board is focused on overseeing improvements in our engagement levels as we recognize they are not at the level we want them.
We have continued to support our people through the most recent COVID disruptions with health and wellbeing support, as well as certainty of remuneration through the lockdowns. A key action taken by the board during the year was on remuneration. We made significant changes to the group-wide remuneration framework with the main outcomes being that the new structure aligns more closely to the interests of our shareholders. We'll continue to engage with shareholders on these and other matters. Meanwhile, key to strengthening our customer relationships is the recognition that our investment in innovation and driving solutions for our customers is essential for their success. As we continue to navigate the range of service disruptions due to the pandemic and general supply chain constraints, we are focused on continuing to improve our customer experience.
As we look forward, we are very confident about the current momentum and future performance of Fletcher Building. We are still navigating the complexities of COVID, it is clear that more collaboration between government and business will bring benefits to the economy and to society more broadly as we prepare for living with COVID. Encouragingly, vaccination levels are trending in the right direction on both sides of the Tasman, which we expect would unlock more freedoms and allow businesses and economies a return to normal. Our economies need resilient companies with vaccinated workforces to meet demand and fill supply chains without the risk of further disruption. Looking ahead, we will continue to advocate for a rational risk-based approach from the government when it comes to progressively opening up the economy and removing border restrictions as vaccination levels continue to rise.
To achieve this, businesses are looking for more certainty and speed of decision-making from the New Zealand government around things like the rollout of rapid antigen testing. Combined with support to drive up vaccinations for their workforces. This is about safety for workplaces, safety for customer, and safety for the community. Like other businesses, we welcome more investment and focus on the vaccination drive and a clear signal that unvaccinated people will face restricted access to travel and other activities. I strongly believe that the most effective way to convince people to get vaccinated is a nationwide vaccine passport. We've been encouraged by the New Zealand government's testing of a vaccine passport app and are looking forward to seeing more details around how it will be used in practice.
Meanwhile, the New Zealand Government has signaled their intention to conduct a market study into building materials in which we will fully participate when it is established. We've argued strongly for some time now that residential land is the largest cost contributor to new housing developments, and that the cost of building materials is highly variable between New Zealand and Australia. We are confident there are a number of cost dynamics playing out in residential housing developments beyond building products, and we look forward to presenting our views to the Commerce Commission at the appropriate time. As ever, we also remain acutely focused on cash, a healthy balance sheet and delivering to our shareholders. We're excited about what we are seeing at the board table as the group continues to drive operational performance and make value-enhancing growth investments.
Before handing over to Ross, I would like to express my thanks to our shareholders for your continued support. I am confident Fletcher Building is very well positioned for the future. With that, I now invite Ross to provide his address.
[Non-English content ], Bruce. [Non-English content ] Thanks, Bruce. I would also like to add my welcome to those joining our shareholder meeting today. On this first slide, we show a high-level view of the plan we've been working to in Fletcher Building for the last three years. Pleasingly, we continue to remain on track, with very solid performance outcomes being achieved across all areas of our business last year. Importantly, and as Bruce noted, this performance is showing up in our bottom line results. We are in great shape to build from this position and drive both further operational improvements and above-market sales growth over the coming years. Moving to slide 14, and before I get into the detail, you'll see on this slide that we've provided three years of comparison numbers.
We've done this as we felt the FY 2019 year was a more meaningful comparator year than FY 2020. As you'll recall, the FY20 year was significantly impacted by COVID restrictions on our businesses, particularly in New Zealand. Turning over the slide and working across it from left to right, our profitability or EBIT margins on revenue continued to improve and were 8.2% for the year. Notably, our trading cash flows were very strong at NZD 929 million. I'd point out, however, that we expect cash flows to be lower this year as we replenish our housing stock in the residential development business and inventories generally. Finally, on this slide, our return on funds employed, or ROFE, was 18.6% for the year. This was a solid result and well ahead of our base target of 15%.
Slide 15 shows at the end of FY21, our balance sheet was very strongly positioned, with net debt levels sitting at NZD 173 million and liquidity sitting at NZD 1.6 billion. This balance sheet strength allows us to support the share buyback, our new wallboards plant, the necessary inventory build after a busy year, the completion of our legacy construction projects, and still maintain a strong balance sheet. We forecast that after all of this, the debt levels will sit slightly below the bottom of our range. Importantly, this provides us with ample capacity to drive targeted growth investments, which I'll outline shortly. Our sights are now firmly set on ensuring that we continue to both improve our operational performance and grow the top line from here.
Slide 16 summarizes on one page where our focus is going to support this and our aspiration to be the leader across New Zealand and Australia in building products and solutions. There are five areas we're focused on. We have a belief that all injuries are preventable. We want to get everyone home safely each and every day. We want to see each business absolutely focused on its customers, making sure the solutions and services that they're offering to them are better than what anyone else in the market can achieve. We need to be ever vigilant that we have our costs under control against both local and global competition. To achieve this, we'll relentlessly benchmark, evolve, and invest to ensure we maintain this position. We want the economic performance of each of our businesses to be in the top quartile of similar businesses globally, not just our local competition.
Finally, we need to take advantage of both our relative scale in New Zealand and Australia and our distance from the larger Northern Hemisphere markets. This allows us to innovate and drive sustainability as a fast follower and to disrupt our home markets and ourselves before others do. This done well should allow us to readily achieve above-market growth in our revenues. As we look ahead, we are confident we can continue to deliver against the plans we laid out three years ago. We remain on track to get our overall EBIT margins to around 10% by FY 2023. This improvement will be achieved from four key areas. Firstly, by lifting margins in Australia into the 5%-7% range. This will build on our present momentum and come from continued improvements in our operating disciplines and the delivery of numerous growth initiatives we already have underway.
Secondly, by lifting construction margins to above 3%. With our forward order book now being reset to a lower risk profile and higher margins, our people skills and systems improved and the nil margin legacy work broadly completing through FY22, we are confident our overall margins from construction will move above 3% into FY23. Thirdly, we'll continue to drive margin expansion across the New Zealand core businesses. We still have further runway in front of these businesses for both ongoing operational improvements and product adjacencies that will support further margin expansion into the future. Finally, we'll get a natural profitability uptick at the group level as we grow our residential house sale volumes in the coming years. Beyond the operational and margin improvements I've just outlined, we also are focused on driving our top-line growth.
Across the divisions, our growth efforts are focused across many areas and include new localities, new products, existing products we can grow through refreshes, customer services we can expand, and growing our e-commerce sales volumes and channels. Just by way of example, our digital sales run rate across Fletcher Building now sits at around NZD 450 million per annum. This is up from virtually nil two years ago. At the group level, we have a team focused on scanning the world, looking for relevant innovations and startup companies that are doing things that we can potentially commercialize in our markets. This team also assists our businesses, bringing their new ideas to maturity. Importantly, we're also accelerating the upgrade of our backbone systems to support the strong growth we're seeing in digital, data, and all things e-commerce.
To ensure we maintain this growth focus and momentum, we've earmarked around NZD 50 million-NZD 100 million of our base CapEx spend and around NZD 30 million-NZD 40 million of our base overhead spend each year to support this. Beyond what I would call base business growth, we're also looking at a growing pipeline of larger and more material opportunities. Examples of these are shown here on slide 19 and include plans that will see our residential housing business grow by around 550 housing units per annum over the next three years. Scaling up our offsite housing manufacturing business, CleverCore. This has two benefits. We get a material new business in its own right, and by being able to build our houses faster, we'll use less annual working capital per house and effectively make the capital we have in this business work harder.
In concrete, we'll introduce pozzolans, which is essentially ground-up volcanic rock into our standard concrete mixes. This does several things. It lets us reduce the embedded carbon in our concrete by around a further 30%, and then with greener concrete than our competition, we expect to win extra market share. It also allows us to grow concrete volumes without scaling up our Portland cement plant. In Australia, we're looking to disrupt the kitchen cabinetry market with our Haven Kitchens offer. We've now opened our first stores in Melbourne. Its proposition for kitchen installers is they can get a full, high-quality kitchen in one day. This compares very favorably with the traditional six-week lead times across the industry now.
Importantly, we expect to progressively add to this list as other opportunities we're working on mature, therefore adding to the strong confidence we have around our growth prospects into the future. Looking now at our markets. I'd characterize both our New Zealand and Australian markets as looking solid into the medium-term. The New Zealand market continues to see strong residential consenting levels and high planned levels of government infrastructure spend. That said, ongoing supply chain and labor constraints mean that the New Zealand construction sector is currently at or near capacity. This dynamic means that consent and project commitments will not flow directly into work volumes and is likely to have the impact of extending the higher levels of building activity through FY22 and beyond. In Australia, the outlook for residential remains resilient, particularly across the detached housing and renovation sub-sectors.
While the commercial and key civil sectors seem to be stabilizing at their current levels. Like New Zealand, the Australian government is committed to infrastructure spend into the future. I now want to briefly touch on the impact we're seeing from COVID so far this year. In New Zealand, through August and September, we were forced to close almost all of our business operations across the full country for two weeks, and in the Auckland region for five weeks. Through the lockdowns, all our staff were fully remunerated and their health and wellbeing was supported through various programs and initiatives. Trading either side of these lockdowns has been very solid and at levels above the prior year. Provided New Zealand stays at these present lockdown levels or better, we would expect the trading conditions to remain above last year.
In Australia, we're predominantly East Coast focused, and lockdowns of some shape or form have been a feature of the FY22 year to date. The net effect of these lockdowns has been to slightly subdue trading levels across most of our businesses. However, as both New South Wales and Victoria start to open up with increasing vaccination levels, we expect trading to improve quickly and to levels above last year. I wanted to call out the efforts of our team across Australia and New Zealand. They've had to deal with the demands and complexities of the differing approaches taken by each state and government this year, and through this have kept our business running effectively and our customers well-serviced. To finish, I'd like to provide a few outlook comments.
With strong vaccination levels in both New Zealand and Australia, we're increasingly confident we'll see less impacts on our business from full or partial COVID lockdowns. This should then allow the present strong trading conditions to flow uninterrupted through our businesses for the balance of FY22 and beyond. Our operational disciplines and business settings are in good shape, which leaves us well-positioned in this environment to drive ongoing performance improvements and growth. We continue to target margins of around 10% by FY23. While our H1 margins this year will be impacted by the various COVID lockdowns we've had to deal with, we are confident that the H2 margins will show good progress towards achieving our 10% by FY23 target.
In closing, I'd like to thank our employees, suppliers, and customers for their dedication through the last 12 months, and I also want to thank you, our shareholders, for your ongoing support. [Non-English content].
Thank you, Ross. I now move on to the formal business of the meeting, which is to vote on the resolutions outlined in the notice of meeting sent to all shareholders in September. All resolutions are ordinary resolutions. To be passed, they require the approval of a simple majority of the votes of those shareholders entitled to vote and who vote on the resolution. I advised at the beginning of the meeting that we will vote on the resolutions by way of a poll. Any undirected proxy votes given to the chair of the meeting or any director will be voted in favor of the resolutions. Any directed proxies given by the shareholder will automatically be cast as directed when the poll is closed. Voting on the resolutions is open, and you can vote at any time until I declare the voting closed.
I will close the voting after all resolutions have been considered and voted on. As you'll be aware, there is usual slight delay to the broadcast, so to ensure the smooth running of the question process, and we have ample time to receive your questions, we will run through all the resolutions, and we'll take questions on all the resolutions at the end. We'll then run through the voting process. It's now my pleasure to move that Rob McDonald be re-elected as a director of the company. Rob was appointed to the board on September 1, 2018. He is Chair of the Audit and Risk Committee, is a member of the Nominations Committee, and a member of the People and Remuneration Committee. He is considered by the board to be an independent director. His credentials are outlined in the explanatory notes to the notice of meeting.
The board unanimously recommends that shareholders vote in favor of the election of Rob McDonald. I now extend to Rob the opportunity to speak about his re-election before we proceed to a discussion on the resolution.
[Non-English content] . My name is Rob McDonald, and I'm here to seek your continued support in my appointment as a director of Fletcher Building. From the very earliest stages in my career, during a time with a leading Australasian building company, it was impressed upon me the importance to our society of companies that actually make products in New Zealand that impact the daily lives of people, whether wallboard in a house or concrete and aggregates in a road or in a bridge. Fletcher Building is a critical company to the New Zealand economy, and a successful Fletcher Building supports a successful New Zealand. This has again been demonstrated through the COVID pandemic as overseas supply chains have been disrupted. Developing a platform for future growth holds great opportunity for Fletcher Building.
At the board level, tapping into proven financial expertise to refine and enhance business performance is critically important. I am the Chair of the Audit and Risk Committee at Fletcher Building. The company has returned to a more profitable position, which in turn means a stronger, more reliable Fletcher Building for our people, customers, and those industries that rely upon us, as well as providing better shareholder value in the long term. Balancing smart operational management and clear financial oversight will be key to achieving our growth ambitions over the next two years. During these past three years of my governance work, I've provided guidance for a range of high-profile New Zealand companies, carefully charting a course through these challenging times.
Prior to that, I had a lengthy and rewarding career with 14 years as Chief Financial Officer at Air New Zealand, managing and overseeing large and complex funding structures together with developing strong risk management frameworks while overseeing high-performance finance function. Most importantly, I have experienced the impact on a large organization of events such as those cyclical downturns and the global financial crisis. When I last had the pleasure of speaking with you in this forum, I bet it was in person, we reflected on the fact that the recent past had not been kind to Fletcher Building shareholders, and that as a fresh set of board of directors, we were strongly motivated to turn that around.
Shared today, we have evidence that that strategy, set out by Ross and the team, is making great progress towards delivering sustainable shareholder value in the long term, and I'm proud to have played a role in that shift. Importantly, as the challenges of three years ago have diminished, the organization has increased its focus on digital transformation and reducing its carbon footprint. With encouraging signs of our strategy taking hold, it's with real optimism that I look forward to continuing my contribution at the board level to building a bright future for Fletcher Building. I'm excited about the opportunity in front of us, and thank you for your consideration, and thank you in advance for your support ahead. [Foreign language].
Thank you, Rob. The next resolution that I'll move is for Doug McKay. It is now my pleasure to move that Doug McKay will be reelected as a director of the company. Doug was appointed to the board on 1 September 2018. He is chair of the Safety, Health, Environment and Sustainability Committee, is a member of the Audit and Risk Committee, and is a member of the Nominations Committee. He is considered by the board to be an independent director. His credentials are outlined in the explanatory notes to the notice of meeting. The board unanimously recommends that shareholders vote in favor of the election of Doug McKay. I now extend to Doug the opportunity to speak about his reelection before we proceed to a discussion on the resolution.
[Non-English content] , Bruce. [Non-English content] , everyone. Good afternoon, fellow shareholders, ladies and gentlemen. It's my pleasure to join you today as a director of Fletcher Building, a role I seek reelection to during today's proceedings. When I last stood before you in 2018 for my first AGM, I spoke about my ambition for the business, the relevance of my experience, and my workload. I would like to recap how things have turned out over the last three years, what I said I would do, and what did I do. I have a diverse and interesting portfolio of boards and find this energizing and helpful in supporting my contribution at Fletchers.
My participation and attendance at Fletchers has been 100%, as shareholders would expect, and I remain committed and enthusiastic to continue for the next three years building on the strategy and progress I have been part of for the last three. On my experience, I said three years ago I would bring a deep background in large, complex, and multi-site trans-Tasman manufacturing, distribution, and customer service turnarounds. How prescient that experience was, given it became clear early on in my first term at Fletchers, these were the challenges at the heart of our strategy moving forward. None was more challenging than health and safety, and as the chair of the Safety, Health, Environment and Sustainability Committee. We have built our approach to safety from the ground up using the world's best practice benchmarks and practices.
Our whole culture has been transformed, where safety is now the number one priority for every employee, and our safety performance is reflecting this renewed focus and commitment. The culture has changed, and health and safety is now embedded and sustainable. Through much effort across the organization, we have led an impressive safety turnaround to reassert the belief that all injuries can be prevented. We have delivered a much improved site safety record, with 85% of our sites remaining injury-free in the last financial year, and total recordable injuries within reach of industry best. COVID permitting, we regularly visit sites to see how safety is landing with our people on the ground. Our efficiency and productivity is up, and business leaders are really owning it, supported by internal and external subject matter experts to ensure best and consistent practice. There is still more work to do.
Thirdly, I spoke of my ambition for the business, that for New Zealand to be strong, Fletchers needs to be strong. The turnaround at Fletchers is now evident despite new obstacles and challenges along the way, not limited to the convention center fire in 2019 and COVID, of course. I have played my part on a refreshed senior and highly experienced board supporting and challenging a talented management team. The board and Ross are clear about what is going to be required over the next three years, and I am very committed to wanting to contribute my part to that. I look forward to the opportunity to serve my fellow shareholders and would be happy to take any questions. Thank you.
Thank you, Doug. We'll now move to the next resolution. It's now my pleasure to move that Cathy Quinn be re-elected as a director of the company. Cathy was appointed to the board on 1 September 2018. She's a member of the Audit and Risk Committee, is a member of the Nominations Committee, and is a member of the Safety, Health, Environment and Sustainability Committee. She is considered by the board to be an independent director. Cathy's credentials are outlined in the explanatory notes to the notice of meeting. The board unanimously recommends that shareholders vote in favor of the election of Cathy Quinn. I now cede to Cathy the opportunity to speak about her re-election before we proceed to a discussion on the resolution.
[Foreign language], Bruce. [Foreign language], everyone. Good afternoon, fellow shareholders, ladies and gentlemen. I'm delighted to join you online for this, my fourth Fletcher Building annual shareholders' meeting. As a director of Fletcher Building, I bring a broad experience of a long and successful professional services career, notably contributing to the emergence of my former firm, MinterEllisonRuddWatts, to become one of the acknowledged market-leading law firms in our region. During my time on the Fletcher Building board, I have supported the development of customer-focused strategies, leading to sustainable growth and change across the group in both Australia and New Zealand. I'm pleased that as we sit here today, the efforts by this board, management, and our 14,500 people across Fletcher Building are being recognized and rewarded as having made a sizable positive shift in becoming an aspirational business for New Zealand once again.
As Doug outlined in his speech, I'm particularly proud of the progress made in key areas of long-term strategic importance, such as those areas led by the Safety, Health, Environment and Sustainability Committee. One of the benefits being a member of that committee has given me is the opportunity to interact with a broad range of members of the Fletcher Building team as the committee has conducted site visits across New Zealand and Australia. These last 18 months, in particular, have demonstrated that in order for our business to have a bright future, world-class health and safety governance must take precedence. I've been pleased to participate in an entirely collective effort to drive performance in areas with critically important implications for our business and beyond.
On building a more sustainable business for the future, it was with much pride that Fletcher Building became the first building products company in Australasia to set a science-based target to reduce emissions by 30% by 2030. In the past 12 months, your company received an upgrade from the internationally recognized Carbon Disclosure Project to a B-minus rating for our approach to managing carbon emissions and climate change. In late 2020, Fletcher Building was included in the Dow Jones Sustainability Asia Pacific Index for the first time. My passion and ambition for Fletcher Building is to support this business deliver on its potential to be one of the New Zealand incorporated companies that all New Zealanders can be proud of, but most importantly, that its people and our shareholders can be proud of.
As we shift into a performance and growth phase of Fletcher Building's five-year strategy, we're starting to see the impact and potential to refocus on the opportunities for our businesses in New Zealand and Australia. It's my intention to keep on doing my homework. I will not shy away from asking difficult questions, encouraging the team to reach for better in the quest to see Fletcher Building deliver value to you, our shareholders. I am known as a resilient person, someone who can get to the heart of things and speak clearly and directly when required. With your endorsement, I look forward to working with my fellow directors, Ross, and the management team in creating long-term sustainable value to you, our shareholders. Please cast your vote in favor of my re-election as a director.
I can assure you that I will do my very best to reward your trust in me. Thank you.
Thank you, Cathy. We'll now move to the final resolution. I now move that the directors be authorized to fix the fees and expenses of the auditor. EY is the company's auditor and is automatically reappointed under the Companies Act 1993. This resolution authorizes the board to fix the fees and expenses of the auditor. EY audit partners are present at the meeting should shareholders have any questions of them concerning this resolution. I now invite discussion on the resolutions regarding the re-election of the directors. Are there any questions that shareholders would like to ask Rob McDonald, Doug McKay, and Cathy Quinn?
There appear to be no questions on the resolutions.
Okay. I now invite discussion on the resolution regarding the auditors' fees and expenses.
There appear to be no questions on the resolution.
Okay, there are no questions?
There are no further questions.
Thank you for Well, I won't thank you for your questions. There haven't been any. Please now cast your vote on Resolution one, the re-election of Rob McDonald. Please cast your vote on Resolution two, the re-election of Doug McKay. Please cast your vote on Resolution three, the re-election of Cathy Quinn. Finally, Resolution four, that the directors be authorized to fix the fees and expenses of the auditor. The voting on all four resolutions will close shortly. We'll take a few moments now to allow those people that have not already voted to do so via the Computershare online portal. Please complete your voting now. We'll take a few minutes to collate the voting. Okay. I'm not sure. Have the proxy votes come up on the screen? I'm not seeing it in front of my screen, I assume we're having a little technical problem there.
Here they are. Excellent. You'll now see on the screen the results of the proxy voting received ahead of the meeting for all four resolutions. The company's auditor, EY, will act as scrutineer for the polls. Please note that the final results of voting on the resolutions will be advised to the NZX and ASX this afternoon. Ladies and gentlemen, finally we turn to the part of the meeting where shareholders have the opportunity to raise further questions. I now like to give any shareholders the opportunity to ask questions. While we wait for your questions to come through online, we will address the pre-submitted questions received ahead of the meeting, which haven't been specifically answered through my or Ross's address already. The first question is from Hugh and Elizabeth Capper, shareholders. Okay, let's roll into this one. I'll read them out.
Why have Fletcher's not taken a lead in house building as they did after World War II? Standardized kits pre-cut with all equipment, carpets, et cetera, have been produced in Canada, U.S., and Scandinavia for years. Why can you not do this either with a factory here, Australia, or Canada? To answer your question, pleasingly as Ross has already highlighted, we already have this technology in place at our Clever Core facility here in Auckland. This was opened two years ago and manufactures pre-fabricated building components. Clever Core products close wall panels, mid-floor and roof cassettes that are assembled on-site by their specialist teams. Total build time, depending on topology, can be reduced by 50%-60%. Since opening, Clever Core has designed, manufactured, and assembled a range of home types. Single-level duplexes, two-story terraces, and standalone single-level homes for a number of Fletcher Living developments.
We are targeting delivery of 200 homes in FY 2022. We are looking to significantly lift this in the period ahead. Our next question comes from Michael Ramsey, shareholder. "Why do directors not reduce their directors' remuneration when shareholders take a dividend reduction? Is it a double standard?" It certainly isn't a double standard. As disclosed to the market and our shareholders at the time, no dividend was paid for FY 2020 due to the impact of COVID and related government protection measures. We reduced our directors' fees by 30% for six months to the end of September 2020. Having delivered strong earnings and cash flow result in the last financial year, the board approved a total dividend of NZD 0.30 per share. Full details of changes and adjustments to directors' fees are set out in your company's 2021 annual report. Our next question comes from Steve Nelson, shareholder.
I remain concerned about the company's settlement in relation to the Ihumātao block of land. The NZD 29.9 million settlement accepted from the government appeared to me at the time to be grossly inadequate. The settlement figure is, in my view, at least NZD 20 million short of the mark, anything like a reasonable mark. As support for this contention, I would point out the recent purchases by Goodman Property Trust of 34 hectares of land around the Villa Maria Estate vineyard. Goodman Property Trust paid NZD 75 million for the similar size block of land. To date, there have been no reasonable attempt by the company to explain their acceptance of this settlement. I believe it was not in the interest of shareholders. I would still like to hear a reasonable explanation if, in fact, there is one.
The way I see this at present is that the company has put aside the expectation of shareholders that the company acts in their interests. Okay, let's talk to Ihum`atao. The sale price was agreed as being fair and reasonable at the time, and we largely broke even on the transaction. It's true that had the development progressed to completion, the returns would've been more significant. However, management and the board believe that there was no clear timeframe and process to do so. This was going to be a very long and difficult process if we continued with the development. We have a duty to our shareholders to act responsibly with their investments, and we believe that the sale price was fair and commercially sound. It was the right call to make. Our next question comes from Arthur Woolard, shareholder.
Why are Fletchers not proceeding with the share buyback? We appreciate your question predates our recent buyback trading, you'll have seen since that time that we remain committed to the buyback program, which has recommenced. Our next pre-submitted question is from Lewis Mercash, shareholder. What strategies are in place to regain share price levels of 2017, i.e., NZD 10? Great question. Thank you for your question, Lewis. I can reassure you that the board and management team have a solid strategy in place to drive the performance and growth of the business. The five-year strategy started with stabilizing the business after a very difficult period. It is now focused on delivering consistent performance and growth. You'll have seen in the presentations, we are making good progress to that goal. We now have three questions from Alison Roberts, shareholder. First one.
Firstly, why does the CEO not have a concrete-based CO2 emissions reduction goal as part of their incentive? I've seen how effective this was for safety with Protect and sustainability initiatives will not get traction until this is in place." Thanks for your question, Alison. I'm pleased to highlight that as part of ensuring we meet our decarbonization goals, the chief executive of our concrete division does in fact, have a carbon reduction goal, as do senior managers across our cement business. Delivering sustainable business performance, including successful sustainability outcomes, will be a key factor to Ross Taylor also achieving his growth goals beyond FY20, built into both his short and long-term incentives. Second question from Alison. "I understand there is minimal use of supplementary cementitious materials, SCMs.
When will you set a target and report percentages of low-carbon products, such as the proportion of cement sales? Okay, let me start by saying that we know that our New Zealand manufactured cement is 20% lower in carbon than imported competition. We hold Environmental Product Declarations for our cement and many of our concrete products. EPDs are publicly available and give a verified assessment of the carbon in these products and allow comparison of embedded carbon in our products versus other products. Our carbon reduction strategy covers several elements, and we have now achieved coal substitution of more than 50% at our Golden Bay Cement plant. We are also focused on identifying sources of supplementary cementitious materials, SCMs, as a way of avoiding the emissions associated with using clinker to produce cement.
Typically used SCMs such as slag, fly ash are only available in very limited quantities and also come from CO2-intensive industries. Therefore, we are working hard on sourcing alternatives, with natural pozzolans being one New Zealand source, as Ross has already outlined. Thirdly, from Alison, "When do you plan to revise emission reduction targets to the less than 1.5% global warming goal?" In line with the requirements of the Science Based Targets initiative, we will review our targets as part of the next validation, which for our business is in 2024. Our focus at the moment is to focus on and progressing with carbon reduction plans across our business and reporting publicly on our carbon reduction progress. Our final pre-submitted question comes from Dora Roberts, shareholder. "Do any of the directors ever have any interaction with the company's coal face workers?" Thanks, Dora. Great question.
As you've heard from our directors seeking re-election, they have been involved in the business. I personally have been actively involved, going around the businesses, conducting site visits, and spending time talking to staff. You'll appreciate, though, that COVID has made this difficult, but it's certainly something that all the board are doing. I would also add that having our directors spread across New Zealand and Australia, where they can visit operations, has also been of great benefit through this time. That concludes our pre-submitted questions. We'll now answer questions received via the Computershare platform.
Thank you, Chair. The first question is from Gordon Wallace. "Is the Northern Motorway project progressing on schedule? When do you expect it to be completed? Also, you received a top-up of funds from the government for the motorway project. Will you be receiving a further top-up from the government?
Okay, there's a lot of questions there. Why don't I go to Ross? Why don't you pick up those questions?
Yeah. Thanks, Bruce. The first comment I'd make is, whenever we work in projects, we actually don't make announcements on it. It's actually our client that does. We don't ever talk explicitly about projects. I can give you some broad comments on the questions you've asked. Firstly, when you talk top-ups, there's no such thing exists in a project. What happens is you have to submit formal variations, and the client has to agree that they're valid under the contract, and that's only when you get paid. That's the process we go through when the scope of the project has increased, and that's what you've seen come into that project envelope. In terms of schedule, I can say the project was on schedule, but clearly with the COVID shutdowns recently in Auckland and the Greater Auckland area, that's obviously delayed things.
As we get into the level three, there's still distancing, we'll be working out with Waka Kotahi just how and when we'll finish the project. We've got to get back up to full production first. I see another question in there, which on the screen. I'll just go ahead on the SkyCity project that you asked. It is progressing. Yes, there are some supply chain challenges in procuring the materials. We're broadly dealing with those. The work we're doing now is more about getting the damaged components off still, the facade, the roof trusses, which is progressing well, and then cleaning up the basement. That's giving us time to then get the procurement in place for the next stages when we start bringing new materials in.
Ross, there's also a question on SkyCity in relation to how the roof is going and the redesign. You want to make a comment on that?
Firstly, what I will say is the roof that was there was code compliant and would still be code compliant. We have been looking at a design alternative, but it's more been about how we design it to actually expedite the rebuild. That's a process we're working through with the client and Auckland Council. It's progressing well, and we expect to have that landed in the next few months.
Thank you, Chair. We have another question from the New Zealand Shareholders' Association. "If I light three fires, one burning wood, another coal, and another tires would probably be the dirtiest. Can you explain how you overcame the poisonous black emissions in heating for concrete manufacture?
Okay, that's a great question. Why don't you pick that one up on this, Ross? I know the answer, but you go.
Thanks, Bruce. What happens when you consume tires, it actually emits less carbon than burning coal. What you also need to understand is the temperature it gets burned at is circa 1,100 degrees Celsius from memory. What that does is it really consumes the tire chips in a very different way than if you go out to your backyard and just throw a match in there and you have the black smoke. You don't get that sort of emissions from it. You've got various filters on our stacks as well. Broadly, the real answer is it's consumed at 1,100 degrees. It's a very different burning process than if you throw a match into a pile of tires at the back. The beauty of doing it is it solves two problems.
It actually is much less of an emitter than coal, which we've displaced now 50% of our coal in the kiln up at Golden Bay Cement. It also has iron in it, so it actually lets us use less iron oxides in the process as well. By the way, the other good thing is it's actually taking about 2/3 of New Zealand's waste tires out of landfill, which are exposed to random burning events as we've seen in the news. It's got those multiple benefits. It's a great use of waste to offset carbon and clean up the environment.
Thank you, Chair. The next question is also from the New Zealand Shareholders' Association. A couple of questions on the buyback, which we appreciate is good for shareholders. If the directors felt that Fletcher Building shares were undervalued in 2021, then the best time to buy back would've been earlier when the price was NZD 5.80. Did you consider it then? In light of the allocation of capital, a buyback suggests the company has surplus capital which it can't invest in existing operations. At this time, Fletcher Residential is only 8% of group revenue, and New Zealand is facing acute housing shortages and extreme demand inflation. Was there a better way to spend the NZD 300 million?
Sort of two questions there. Why don't I pick the first one up. In relation to the current buyback, if you remember, we had a buyback that was operating over 18 months ago, which effectively we stopped when COVID hit. The buyback was at the early stages. We stopped it at that point, we've restarted it. Obviously we've restarted it because we still believe that it's beneficial to shareholders, and to our share price. In relation to the allocation of capital, relevant in your comment, could we redirect that capital to Fletcher Residential? We are comfortable we can do both. We've got sufficient capital to grow Fletcher Residential and build more houses, as well as the share buyback. We're comfortable that we have got the capital requirements to do both.
Thank you, Chair. The next question is from the New Zealand Shareholders' Association. We congratulate the board on the progress made. However, criticism in the past was that the balance of the board was more towards banking and finance than expertise in technical construction and development. It is a banker's board. Does the board have a succession plan to include more building, manufacturing, and technical expertise?
Thank you. We've had this question a few times. This is a board of very experienced governors that have a range of experiences and skill sets across many industries and sectors. I'm a firm believer that you actually, if you want to assess the quality of the board, look at what we've delivered in the last three years. Entirely comfortable with the makeup and composition of the board, and judge us on what we say and do, would be my comment there. Do we have a succession plan? That's one that we're working on. One of the small little challenges we have is I'm the oldest serving board member at just on four years. Most of the board, actually, five directors joined at one time. Three of them are up for re-election today.
That's something we're working on, and we will manage that in the period ahead. We will make the decisions on the type of experience and skill sets we need, at that time.
Thank you, Chair. There appear to be no further questions.
Thank you very much for your questions. Ladies and gentlemen, that brings us to the end of the formal business of the company's 2021 annual shareholders' meeting. I now declare the meeting closed. Thank you for your attendance and participation today. Stay safe