Fletcher Building – HY18 Results

Fletcher Building
Half Year Review December 2017

Firth Concrete, New Zealand’s leading supplier
of ready mix concrete and masonry products,
opened the country’s most technologically-
advanced masonry block plant at Hunua in
South Auckland on November 29, 2017.
It can produce 50,000 blocks per day – four
times the capacity of the previous East Tamaki
plant. The plant was built on a former quarry,
recycles 100 per cent of waste blocks onsite, and
uses rainwater collected from the roof as its
primary source of water. Raw materials come
from GBC Winstone’s quarry next door, also a
Fletcher Building business.
COVER: New Firth Masonry Plant, Hunua Auckland

CEO Message02
Chairman's Message06
Building Products08
International09
Distribution10
Construction11
Residential and Land Development12
Financial review13
Financial statements15
Notes to the financial statements24
Shareholder information33
Contents
When used in this half year
review, 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.
Any references to documents
and information included on
external websites, including
Fletcher Building’s website,
are provided for convenience
alone and none of the
documents or other
information on those websites
is incorporated by reference
in this half year review.
You can obtain an electronic
copy of this half year review at
http://www.fbu.com/
investor-centre/reports-and-
presentation/

Outside the challenges experienced in B+I, the
broader business continues to perform to
guidance.
Fletcher Building generated total revenue for the
six months ended 31 December 2017 of $4,889
million, which was six per cent higher than the
prior comparable period.
As announced on February 14, we have taken
further provisions for expected losses in B+I of
$486 million, leading to a total projected B+I EBIT
loss of $660 million in FY18. The HY18 result
incorporates $631 million of this expected loss.
When incorporating this B+I loss, operating
earnings before significant items (EBIT) were a
loss of $322 million. Excluding B+I, EBIT was
$309 million, which was 13 per cent lower than
the first half of FY17.
Net earnings before significant items were a loss
of $273 million, down from a profit of $187 million
in the prior corresponding period.
CEO Message
It was a privilege to join Fletcher Building as
Chief Executive Officer during November 2017.
Since that time, I have been firmly focused on
understanding the business and the performance
of our five Divisions, reviewing the provisioning
in the Building + Interiors (B+I) business, and
instigating a strategic review of the portfolio, to
present a new strategy to the market in June.
B+I PROVISIONING
The new provisioning announced on 14 February
was informed by a review of 16 B+I projects,
accounting for approximately 90 per cent of the
construction backlog, and incorporating external
input from independent construction experts
and KPMG.
We are confident in our ability to complete the
remaining B+I projects within these provisions for
a number of reasons.
Firstly, B+I’s projects are further progressed. As a
result we have gained greater visibility and
certainty of cost forecasts; we are significantly
further advanced on procurement of important
trade packages; and we have incorporated
material price increases across trade finishing
costs.
02 Fletcher Building Half Year Review December 2017

We have also allowed for significant time and
cost contingencies; incorporated a less
aggressive position on trade cost forecasts;
based productivity forecasts on rates we are
achieving now; and taken a less optimistic view
on client claims and variations.
Our absolute focus is finishing our remaining B+I
projects within these provisions for our
shareholders, and to a high quality for our
customers.
To achieve this, we have refocussed the entire
B+I business on project delivery only, and have
ceased all bidding on vertical construction
projects in New Zealand. This will allow us to
direct all resources in B+I to the completion of
the current book.
ROSS TAYLOR Chief Executive Officer
FLETCHER BUILDING GROUP, EXCLUDING B+I
While it is pleasing to see an increase in sales
revenues, operating earnings have decreased
due to lower profits in the Construction Division,
excluding B+I, as well as the Building Products
Division.
In the Infrastructure and South Pacific
businesses of our Construction Division we are
rolling off major projects from FY17, and we are
only in the early stages of new ones. In Building
Products we have seen gross margins compress
as a result of higher input costs and costs
associated with increasing supply chain capacity
to meet increased demand.
Earnings in the International Division are largely
flat, while Distribution and Residential continue
to post strong growth.
03 Fletcher Building Half Year Review December 2017

OUTLOOK
Fletcher Building continues to benefit from
robust levels of residential activity in New
Zealand, and significant infrastructure
investment in both New Zealand and Australia.
Earnings guidance for the Group excluding B+I
remains within the $680 million to $720 million
range announced in October 2017. As confirmed
previously, B+I’s EBIT result is expected to be a
loss of $660 million, with $631 million of this loss
recognised in the first half.
In June we will update the market with the results
of our strategic review of the business, and
present a new five year strategy that will identify
our biggest growth opportunities and a
corporate and capital structure that best
supports them.
I would like to take this opportunity to
acknowledge the dedication and commitment
of our people right across Fletcher Building, who
remain committed to delivering for our
shareholders.
I look forward to continuing to meet more of you
in the coming months.
ROSS TAYLOR
CEO
CASH FLOW AND DEBT PROFILE
Excluding the performance of B+I, cash flow
generation in the rest of the Group has shown a
good year-on-year improvement.
However, the projected B+I losses, and the
resultant impact on EBITDA, resulted in a breach
of Fletcher Building’s financial covenants given
to its commercial banking syndicate and US
Private Placement (USPP) noteholders. We
received a waiver from our commercial banking
syndicate for the breach of covenants and we
are in discussions with our USPP noteholders to
obtain a similar waiver.
Our discussions with our lenders have been
constructive and we plan to have all loans
renegotiated by 31 March 2018. I want to assure
shareholders that while the B+I provisions are
large, they are phased over a number of years
and do not impact our ability to trade with our
customers or suppliers.
We believe that net debt will peak in the second
half of the 2018 calendar year, and then reduce
due to the strength of cashflows from the
broader group.
SAFETY
For a business like Fletcher Building safety is a
critical measure of our performance. During the
first half of the 2018 financial year our Total
Recordable Injury Frequency Rate declined from
6.9 to 6.6 incidents per million hours worked.
This result was supported by the introduction of
a new, consistent EHS framework during the half,
called Protect. This is now being embedded
across the business – 90 per cent of our people
have completed the initial training, with further
programmes being rolled out to all front-line
leaders and supervisors globally.
04 Fletcher Building Half Year Review December 2017

AWARD WINNING / Fletcher Building won four awards at the Auckland
Council Young at Heart Awards in November 2017: Innovative Youth
Employer, Jobfest Exhibitor 2017, Youth Induction and Development
Award, and the Youth Employment Programme Award.
POSITIVE FUTURES / Fletcher Building launched Switch Up, an
online job hunting and application platform, in October 2017. It
aims to help young people transitioning from school or
unemployment into the workforce, and was created with the
help of high school students.
05 Fletcher Building Half Year Review December 2017

Fletcher Building is a diversified
building company, comprising
more than 30 businesses with
operations that span the entire
building supply chain. The
majority of these business are
performing well, and are
benefiting from supportive
market conditions.
Testament to this, earnings guidance for the
Fletcher Building group excluding B+I remains
within the $680 million to $720 million range
announced in October 2017.
It is regrettable that the underlying strength of
Fletcher Building continues to be masked by
losses in the Building + Interiors (B+I) business of
the Construction Division, which will make a total
projected EBIT loss of $660 million in FY18.
B+I PROVISIONING
The approach Management has taken to B+I
provisioning, and the changes made to its
ongoing operations, gives the Board confidence
that the business will be able to complete its
remaining projects within these provisions.
The provisions announced in February have
allowed for significant time and cost
contingencies, over and above those included in
October.
The decision has also been made to refocus the
B+I business solely on the delivery of its
remaining projects, the last of which we are
targeting to complete in the second half of
calendar 2019. Bidding for all vertical
construction projects in New Zealand has
ceased.
This change will allow the business to direct all
resources in B+I to the completion of the current
book, while protecting shareholder interests by
exiting a market sector that is characterised by
high contract risk and low margins.
The issues in B+I remain isolated to this one
business – they are not systemic across Fletcher
SIR RALPH NORRIS Chairman
Chairman's Message
06 Fletcher Building Half Year Review December 2017

Building, or the broader Construction Division,
where the remaining three businesses continue
to perform well.
DIVIDEND
In line with Fletcher Building’s Dividend Policy the
Board has determined that it will not declare an
interim dividend for FY18. We will reassess the
payment of a full-year dividend at the conclusion
of the 2018 financial year.
BOARD RENEWAL
I understand our shareholders’ expectation that
as Chairman I must take responsibility for the
issues we have experienced in B+I. In this
context, on February 14 I announced that I will
stand down as Chairman no later than the 2018
Annual Shareholders’ Meeting, to allow an
orderly transition and to complete the Board
refresh I have commenced. Three new Directors
and a new Chairman will be appointed in the
coming months, and this process is well
underway.
I remain committed to providing leadership
continuity during this time, and will continue to
support my fellow Directors and Management in
setting a new strategic direction for the
Company.
APPOINTMENT OF NEW CHIEF EXECUTIVE
OFFICER
One of the most important duties of a Board is
securing a high quality Chief Executive Officer. I
am pleased we have been able to deliver this for
Fletcher Building, with the appointment of Ross
Taylor in November 2017.
Ross has led the review of B+I provisioning with
rigour and the benefit of his considerable
construction experience. He has also initiated a
strategic review of Fletcher Building, with the
aim of presenting a new strategy to the market in
June. This will establish clear focus areas for the
business and ensure we invest behind our best
growth opportunities.
CULTURE AND ENGAGEMENT
We have over 20,000 people working across
Fletcher Building and they are by far our greatest
asset.
We have been investing for many years in
organisational culture, which has seen people
engagement continue to improve over time. This
trend continued in FY17, despite the challenging
year we experienced.
Investing in our people and capability, and in
diversity and inclusion, remains a strategic
priority for Fletcher Building.
CONCLUSION
The losses in B+I are deeply regrettable, and the
Board and Management remain firmly focused
on completing the remaining projects within
these provisions.
With the strength of our broader business, the
talent and resilience of our people, and a new
focused strategy, I have every confidence
Fletcher Building will once again deliver our
shareholders the value they expect and deserve.
SIR RALPH NORRIS
Chairman
07 Fletcher Building Half Year Review December 2017

Building Products
• Additional costs incurred in various businesses
to alleviate capacity constraints and support
current and expected increased volumes.
This includes transitional costs associated with
developing new quarry deposits and additional
warehousing to meet increased current and
expected future volumes of plasterboard.
The Concrete Pipes & Products businesses
reported a reduction in operating earnings of
31% to $18 million. Ready-mix concrete sales
volumes increased by 4% but masonry sales
volumes reduced by 8%, partially driven by
production challenges of the transition to a new
lower cost plant, which is now complete.
Concrete pipe volumes were higher in both
Australia and New Zealand.
The Cement & Aggregates business reported a
reduction in operating earnings of 11% to
$34 million. Domestic cement sales volumes
increased 5% while aggregates volumes increased
by 12%. The reduced earnings were due to higher
energy costs, increased operating costs associated
with opening up new quarry resources, and an
unfavourable mix of regional quarry sales.
Building Materials operating earnings were $46
million, a decrease of 13% versus the prior period.
Overall plasterboard volumes were consistent
with the prior period, with performance board
volumes showing a modest increase. Costs
increased in the period due to one-off supply
issues coupled with increased supply chain
costs for expanded warehousing facilities.
Australian glasswool sales volumes increased
by 7% contributing to revenue growth of 4%.
Increased costs from redundancy payments
and other transitional costs as the Sydney
and Melbourne plants implement automation
projects have reduced operating earnings to
date but will result in lower costs in future periods.
The Plastic Pipes businesses reported $11 million
operating earnings, a $4 million improvement on
the prior corresponding period. Volumes in both
Australia and New Zealand increased over the
period, which were offset by substantial energy
cost increases in Australia and New Zealand.
Concrete Pipes & Products; Cement & Aggregates;
Building Materials; Plastic Pipes; JV Earnings
& Other
The division reported gross revenue of
$1,250 million compared with $1,108 million
in the prior corresponding period. The 13%
increase in revenue has resulted from
improved sales volumes and price increases
in the majority of business units, especially
Firth and Iplex Australia.
The division’s operating earnings before
significant items were $118 million. This
reflects some contraction in gross margin
as well as one-off redundancy costs of
$5 million in Fletcher Insulation and a fire
event at a Humes site which reduced
operating earnings by a further $3 million.
Gross margin contraction in the division
is largely a result of the following factors:
• Increased energy costs of approximately
$6 million, particularly impacting GBC
Winstone, Fletcher Insulation and the
Iplex businesses;
• Adverse product mix change, particularly
impacting GBC Winstone, Humes, and
Iplex New Zealand;
• Transitional costs associated with
commissioning of new plants in the
Fletcher Insulation and Firth masonry
businesses;
OPERATING EARNINGS*
$118m
2017
:
$129 ▼ 9%
*Before significant items
08
Fletcher Building Half Year Review December 2017

International
OPERATING EARNINGS
$69m
2017
:
$70M ▼ 1%
the business in both Australia and New Zealand
grew market share in key product categories
while continuing its programme of operational
efficiencies and new product initiatives, such as
the introduction of new anti-finger print laminate.
Operating earnings for Formica were up by 24%
to $42 million while gross revenue was up by 8%.
In domestic currencies revenue was up by 9% on
the prior corresponding period.
In North America, gross revenue in domestic
currencies was up by 3% while operating
earnings in domestic currencies were up by 14%
driven by higher margins from improved product
mix, successful introduction of new products
including anti-finger print laminate, continued
improvements in operational performance at
both manufacturing sites, and recovery of the
Mexican currency relative to the US dollar.
In Asia, gross revenue in domestic currencies was
up by 11%. Performance in China remained strong
with revenue up by 36% on the prior
corresponding period driven by strong project
growth and market share gains. Thailand and
Taiwan were up by 5% and 1% respectively.
Operating earnings in Asia were up by 28%, due
to both overall sales growth across the region
coupled with continuing improvements in the
operating facilities, especially the high-pressure
laminate factory in Jiu Jiang, China, which is now
operating at consistently improved efficiency and
utilisation rates.
In Europe, gross revenue in domestic currencies
was up by 4% driven by improvements in the UK,
Spain and Germany. Operational performance
continued to improve, although this was offset by
an adverse shift in product mix with higher sales
of lower margin thick laminate, and increased costs
to support the improvements in market share.
Roof Tile Group operating earnings were a loss of
$4 million, a decrease of $6 million while gross
revenue was down 17%. This was the result of
continued declines in Africa sales volume, down
by 16%, while Japan revenue was down by 46%
due to a key customer moving to a dual supply
situation and the end of a special sales program
for solar product. Other key global markets
including Europe and Asia were up by 7%.
Laminex; Formica; Roof Tile Group
Operating earnings for the International
division were $69 million, down 1% from
$70 million in the prior corresponding
period. Gross revenue was up by 4%, due
principally to strong performances in the
Formica businesses.
Laminex operating earnings were
$43 million, down by 4% from $45 million
in the prior corresponding period. Gross
revenues in domestic currencies were
largely flat across both New Zealand and
Australia when compared to the prior
corresponding period. In Australia, gross
revenue varied by state with the subdued
residential market in Western Australia
leading to reduced demand, while trading
conditions in the eastern states remained
supportive. Margins were down on last
year mainly as the result of a shift in
product mix to some lower margin
categories and increases in input costs
– especially energy – that could not be
fully passed on. The business is a large
user of electricity in its Gympie medium
density fibreboard and Dardanup particle
board factories with total energy costs
increasing by 36% over the prior
corresponding period.
Competitive pressures both locally and
from overseas remained strong although
09 Fletcher Building Half Year Review December 2017

Distribution
performance in the prior year. Mico opened a
new branch in Gore during the period and will
open another branch in Auckland early in the
second half of the year.
The New Zealand Steel Distribution businesses
grew gross revenue by $28 million or 12% in
the period with good momentum in roofing
and share gains in EasySteel. The roofing
performance was bolstered by the April 2017
acquisition of the Calder Stewart Roofing
business. Fletcher Reinforcing had strong
volumes throughout the period, however,
underlying earnings were negatively impacted
by the effects of steel price rises and higher
operating costs during a transition to a new
facility in Auckland.
The Australian Building Supplies business
generated operating earnings of $4 million,
buoyed by new branch expansion, targeted
buying efficiencies, and controlled operating costs.
Tradelink delivered gross revenue of $381 million
in local currency, which was an increase of 6%
on the prior corresponding period, driven by the
branch expansion program and a strategic focus
on winning back share in the small to medium
and network customer market segments.
Following the 20 new branches opened in FY17,
Tradelink plans to open another 17 branches in
FY18, with new stores moving to profitability in
approximately 4-6 months.
The Australian Steel Distribution business grew
gross revenue by $14 million to $262 million in
the period and delivered strong earnings growth
of 30% to $13 million. The performance reflects
the benefit of Stramit’s strong customer value
proposition, particularly consistently high service
levels. The business also commenced a site
consolidation programme for two large
manufacturing sites into a new purpose-built
facility. This programme of work will be
completed in the balance of FY18 and will
deliver further efficiency gains for the business.
NZ Building Supplies; NZ Steel Distribution;
Australian Building Supplies; Australian Steel
Distribution
The Distribution division’s operating
earnings for the period were $89 million,
an increase of $5 million or 6% on the prior
corresponding period.
Following the record performance in FY17,
the New Zealand Building Supplies
businesses continued momentum despite
an unseasonably wet spring, adversely
impacting demand in the first quarter. The
New Zealand Building Supplies businesses
grew both gross revenue and earnings by
4% on the prior corresponding period with
growth across all regions of New Zealand
except Christchurch, which continues to
re-establish normal trading following the
significant earthquake rebuild period.
PlaceMakers delivered a strong
performance in core product categories,
whilst increasing penetration in some
higher-margin categories and continuing
to develop its installed solution offer. Mico
delivered above market growth with
targeted improvements in back of wall
categories and continued momentum in
front of wall offerings following a strong
OPERATING EARNINGS
$89m
2017
:
$84M ▲ 6%
10 Fletcher Building Half Year Review December 2017

Construction
B+I projects progressively complete, key
resources will be redeployed into other
businesses within the Division.
Earnings in the Infrastructure business
were impacted by the completion of major
infrastructure projects in the prior period,
notably the Waterview Project in Auckland
and the Mackays to Peka Peka Expressway
north of Wellington.
The Higgins business continues to perform
strongly, operating very successfully under
a formula that allows the business to respond
quickly to meet both national and regional
clients’ needs through a strong regional network
with national support. Performance has been
enhanced by the ongoing participation of both
Higgins and the Infrastructure businesses in
the North Canterbury Transport Infrastructure
Recovery (NCTIR) Alliance in response to the
Kaikoura Earthquakes.
The Construction South Pacific business
(which includes Higgins Fiji) reported earnings
of $10 million compared to $23 million for the
same period last year. The reduction reflects the
timing of completion of projects by the Fletcher
Construction South Pacific business, with a
number of major projects in Fiji and Papua
New Guinea completed in the prior
corresponding period.
Construction New Zealand; Construction
South Pacific
The Construction Division reported an
operating earnings loss of $619 million
compared with a profit of $24 million
in the prior corresponding period. This
includes a loss for the period in B+I of
$631 million versus a loss of $47 million in
the prior corresponding period. The result
reflects additional loss provisions recorded
on a number of key projects. Operating
earnings excluding B+I were $12 million
compared to $71 million in the prior
corresponding period.
The division recorded gross revenues of
$1,001 million. At 31 December 2017, the
backlog of work for the division, being the
value of contracted work awarded but not
completed, was $2.3 billion compared with
$2.7 billion at 31 December 2016.
Given the scale of the challenges in B+I,
this business unit’s sole focus will be on
project completion. This means the B+I
business will not be bidding for any further
vertical construction work in New Zealand,
allowing key resources to be redeployed to
project completion. In the longer term, as
OPERATING EARNINGS/(LOSS)
$(619)m
2017
:
$24M
11 Fletcher Building Half Year Review December 2017

Residential and
Land Development
NZ Residential; Land Development
The Residential and Land Development
division reported operating earnings of
$47 million, a 57% increase on the prior
corresponding period.
Gross revenue for the half year was
$236 million, up from $163 million in
the prior corresponding period.
NZ Residential operating earnings were
$30 million, 20% higher than the prior
corresponding period. There was an
increase in the volumes of units sold to
342 from 188 in the prior period. This
reflected an increase in the number of
units available to sell as land purchased
in prior years in new locations became
available to start home building. In
particular, the subdivisions of Swanson,
Whenuapai and Red Beach are now
operating at a sustainable level.
The half year result included a $12 million
provision for a forecast loss on the Atlas
Quarter Apartment project in Christchurch.
This reflects a combination of lower
than expected selling prices and cost
escalations on the project, mainly due
to seismic requirements and higher than
expected construction market rates.
Excluding the impact of this provision,
NZ Residential earnings were up $17 million,
or 68%, on the prior period.
Average margins in Auckland remained strong
during the period, however, there was softening
of demand in some locations as the market
returns to more normal conditions. In particular,
there was an increase in the number of
transactions requiring the sale of the customer’s
current home as bridging finance becomes
harder to obtain. The average settlement period
lengthened slightly to 36 days.
The Christchurch market remained subdued
with no growth in prices over the period.
Work commenced on the East Frame project,
with an initial 112 units underway. The next
anticipated stage will include a further 59
terrace homes, and the decision on further
stages of this development will depend on
discussions with Government on typologies
and market conditions.
At 31 December, the NZ Residential business
held a total of 3,660 lots on balance sheet. In
addition, the business holds a further 1,150 units
under unconditional agreements, to be delivered
over the next five years.
Land Development operating earnings in the
period were $17 million. This business develops
and sells mainly commercial sites within the
Group’s property portfolio which are surplus
to operating requirements. First half earnings
comprised the sale of two development
locations in Australia, and one in New Zealand.
Whilst Land Development earnings will be
irregular in nature, it is anticipated that the
business will earn at least $25 million per
annum over the next five years.
Funds employed in the division increased to
$562 million from $541 million at 30 June 2017,
reflecting an increase in work in progress
in both the NZ Residential and Land
Development businesses.
OPERATING EARNINGS
$47m
2017
:
$30M ▲ 57%
12 Fletcher Building Half Year Review December 2017

Financial Review
FUNDING
In the trading update on 14 February 2018, the Group announced that due to the additional losses in
the B+I business the Group had breached key banking covenants under both its banking syndicate
and United States Private Placement (‘USPP’) agreements.
Prior to these breaches, the Group had total available funding facilities of $3.1 billion and total net
debt of $2.1bn, resulting in funding headroom of approximately $1.0 billion.
Based on the projected timing of the cash impact of the B+I losses, and the trading of the remainder
of Fletcher Building’s businesses, the Group expects total net debt to peak at between $2.3 billion
and $2.4 billion in calendar 2018.
The Group is currently in discussion with its lenders to remedy the covenant breach. To date, the
Group has received a waiver of the breach at 31 December 2017 from its syndicate lenders, and their
commitment to provide the Group with access to continued funding under the existing Facility
Agreement.
The Group is working with its syndicate and USPP lenders to agree new covenant terms, targeting
completion by the end of March 2018.
CASH FLOW
Cash flows from operating activities of $110 million were $177 million higher than the prior corresponding
period. Trading cash-flows after working capital movements were $202 million, up from $56 million
in the prior corresponding period. Excluding B+I, trading cash-flows were $335 million, up from
$152 million in the prior corresponding period.
Working capital inflows of $431 million were higher than the prior corresponding period due to the
positive balance for construction contracts, largely reflecting the losses recognised but not yet
incurred as cash in the Construction division. Excluding construction contracts, working capital
outflows were significantly lower than the prior period, reflecting principally the lower net land and
developments investment of $28 million, which was down from $164 million in the prior corresponding
period. In addition there was a lower net working capital investment in the Building Products,
International and Distribution divisions as these divisions placed an increased focus particularly
on receivables and inventory management.
Capital expenditure was $131 million, compared with $127 million in the prior corresponding period.
Of this total, $88 million was for stay-in-business capital projects and $43 million related to new
growth initiatives.
For the financial year, capital expenditure is expected to be in the range of $275 million to $325 million
and depreciation is expected to be at the lower end of the range of $225 million to $245 million.
DIVIDEND
In line with the Company’s dividend policy, the Board has determined that it will not declare an
interim dividend.
13 Fletcher Building Half Year Review December 2017

Financial highlights (unaudited)
Dec 2017Dec 2016June 2017
Return on average funds (%)
(1)
(6.1)13.44.9
Return on average equity (%)
(2)
(9.8)12.52.5
Return on average funds – before significant items (%)
(1)
(1.9)13.29.4
Return on average equity – before significant items (%)
(2)
(3.8)11.78.7
Earnings per share – basic (cents)(39.2)25.413.5
Earnings per share – basic before significant items (cents)(39.2)27.046.3
Net tangible assets per share ($)2.202.652.70
Dividends per share (cents)0.020.039.0
Gearing (%)
(3)
39.135.435.3
(1) Rolling 12 month EBIT to average funds (net debt and equity less deferred tax assets).
(2) Rolling 12 month net earnings to average shareholders' funds.
(3) Net debt (borrowings less cash and deposits) to net debt and equity.
14
Fletcher Building Half Year Review December 2017

Consolidated income statement (unaudited)
For the six months ended 31 December 2017
Notes
Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Sales4,889 4,613 9,399
Cost of goods sold(4,341)(3,498)(7,319)
Gross margin548 1,115 2,080
Selling and marketing expenses(470)(452)(903)
Administration expenses (394)(353)(680)
Share of profits of associates and joint ventures16 8 20
Other gains and losses5(22)(8)8
Significant items4(16)(252)
Earnings before interest and taxation (EBIT)(322)294 273
Funding costs(63)(52)(111)
Earnings/(loss) before taxation(385)242 162
Taxation benefit/(expense)6117 (61)(57)
Earnings/(loss) after taxation(268)181 105
Earnings attributable to non-controlling interests(5)(5)(11)
Net earnings/(loss) attributable to the shareholders(273)176 94
Net earnings per share (cents)
Basic (39.2) 25.4 13.5
Diluted (39.2) 25.2 13.5
Weighted average number of shares outstanding
(millions of shares)
Basic 696 693 694
Diluted 696 717 694
Dividends declared per share (cents)0.0 20.0 39.0
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
15 Fletcher Building Half Year Review December 2017

Consolidated statement of comprehensive income (unaudited)
For the six months ended 31 December 2017
Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Net earnings/(loss) attributable to shareholders(273)176 94
Net earnings attributable to non-controlling interests5 5 11
Net earnings/(loss)(268)181 105
Other comprehensive income
Items that do not subsequently get reclassified to
profit or loss:
Movement in pension reserve(3)2 44
(3)2 44
Items that may be reclassified subsequently to
profit or loss in the future:
Movement in cash flow hedge reserve2 (2)(7)
Movement in currency translation reserve 108 (33)(17)
110 (35)(24)
Other comprehensive income107 (33)20
Total comprehensive income/(loss) for the period(161)148 125
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
16 Fletcher Building Half Year Review December 2017

Consolidated balance sheet (unaudited)
As at 31 December 2017
Notes
Dec 2017
NZ$M
Dec 2016
NZ$M
June 2017
NZ$M
Assets
Current assets:
Cash and deposits190 229 219
Current tax assets35 17 15
Derivatives6 12 8
Debtors1,468 1,319 1,525
Inventories1,800 1,735 1,652
Total current assets3,499 3,312 3,419
Non-current assets:
Property, plant and equipment2,247 2,139 2,214
Goodwill9 1,099 1,228 1,069
Intangible assets639 640 609
Investments in associates and joint ventures154 142 146
Retirement plan assets72 40 71
Other investments 1 2 2
Derivatives79 116 91
Deferred tax assets6 182 13 52
Total non-current assets4,473 4,320 4,254
Total assets7,972 7,632 7,673
17 Fletcher Building Half Year Review December 2017

On behalf of the Board, 21 February 2018
Sir Ralph Norris Bruce Hassall
Chairman of Directors Director
Notes
Dec 2017
NZ$M
Dec 2016
NZ$M
June 2017
NZ$M
Liabilities
Current liabilities:
Creditors and accruals1,369 1,270 1,406
Provisions61 69 70
Current tax liabilities36 21 30
Derivatives5 14 7
Construction contracts8 732 28 214
Borrowings7 1,701 314 269
Total current liabilities3,904 1,716 1,996
Non-current liabilities:
Creditors and accruals25 70 36
Provisions22 22 25
Retirement plan liabilities37 52 38
Deferred tax liabilities43 59 47
Derivatives39 29 48
Borrowings7 607 1,956 1,903
Total non-current liabilities773 2,188 2,097
Total liabilities4,677 3,904 4,093
Equity
Share capital2,696 2,659 2,678
Reserves575 1,048 878
Shareholders' funds3,271 3,707 3,556
Non-controlling interests 24 21 24
Total equity 3,295 3,728 3,580
Total liabilities and equity7,972 7,632 7,673
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
18 Fletcher Building Half Year Review December 2017

For the six months ended 31 December 2017
Share capitalRetained earningsShare-based payments reserveCash flow hedge reserveCurrency translation reservePension reserveTotalNon-controlling interestsTotal equity
NZ$MNZ$MNZ$MNZ$MNZ$MNZ$MNZ$MNZ$MNZ$M
Total equity at 30 June 2016 2,650 1,399 13 5 (269) (107) 3,691 22 3,713
Total comprehensive income
for the period 176 (2)(33)2 143 5 148
Movement in non-controlling
interests (6)(6)
Issue of shares16 16 16
Dividends paid to shareholders
of the parent(139)(139)(139)
Movement in share-based
payment reserve3 3 3
Movement in treasury stock (7)(7)(7)
Total equity at 31 December 20162,659 1,436 16 3 (302)(105)3,707 21 3,728
Total equity at 30 June 2016 2,650 1,399 13 5 (269) (107) 3,691 22 3,713
Total comprehensive income
for the year 94 (7)(17)44 114 11 125
Movement in non-controlling
interests (9)(9)
Issue of shares31 31 31
Dividends paid to shareholders
of the parent(277)(277)(277)
Movement in treasury stock (3)(3)(3)
Total equity at 30 June 20172,678 1,216 13 (2)(286)(63)3,556 24 3,580
Total comprehensive income/
(loss) for the period (273)2 108 (3)(166)5 (161)
Movement in non-controlling
interests (5)(5)
Issue of shares9 9 9
Dividends paid to shareholders
of the parent(132)(132)(132)
Movement in share-based
payment reserve(5)(5)(5)
Movement in treasury stock 9 9 9
Total equity at 31 December 20172,696 811 8 0 (178)(66)3,271 24 3,295
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated statement of movements in equity (unaudited)
19 Fletcher Building Half Year Review December 2017

Consolidated statement of cash flows (unaudited)
For the six months ended 31 December 2017
Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Cash flow from operating activities
Receipts from customers5,003 4,587 9,303
Dividends received4 5 11
Total received5,007 4,592 9,314
Payments to suppliers, employees and other4,805 4,536 8,847
Interest paid62 54 125
Income tax paid30 69 99
Total applied4,897 4,659 9,071
Net cash from operating activities110 (67)243
Cash flow from investing activities
Sale of property, plant and equipment14 26
Sale of investments1 3
Total received15 29
Purchase of property, plant and equipment and
intangible assets131 127 319
Purchase of subsidiaries/businesses305 321
(Cash)/net debt in subsidiaries acquired(4)
Total applied131 432 636
Net cash from investing activities(116)(432)(607)
Cash flow from financing activities
Net debt drawdown506 476
Issue of capital notes221 35
Total received221 506 511
Net debt repayment117
Repurchase of capital notes19
Treasury stock purchased3 3
Distribution to non-controlling interests8 9 14
Dividends 123 123 246
Total applied248 135 282
Net cash from financing activities(27)371 229
Net movement in cash held(33)(128)(135)
Add opening cash and liquid deposits219 356 356
Effect of exchange rate changes on net cash4 1 (2)
Closing cash and deposits190 229 219
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
20
Fletcher Building Half Year Review December 2017

Reconciliation of net earnings to net cash from operating activities (unaudited)
For the six months ended 31 December 2017
Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Net earnings/(loss) (273)176 94
Earnings attributable to non-controlling interests5 5 11
(268)181 105
Adjustment for items not involving cash:
Depreciation, depletions and amortisation 110102203
Significant items13232
Provisions and other adjustments(16)(43)(66)
Taxation(147)(8)(42)
(Gain)/loss on disposal of businesses and property,
plant and equipment1 (13)
Non-cash adjustments(53)65 314
Cash flow from operations before net working
capital movements(321)246 419
Net working capital movements431 (313)(176)
Net cash from operating activities110 (67)243
Net working capital movements
Debtors9874 (103)
Inventories(63)(76)(62)
Land and developments(28)(164)(99)
Contracts502(99)74
Creditors(78)(48)14
431 (313)(176)
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
21
Fletcher Building Half Year Review December 2017

Breakdown of financial performance (unaudited)
Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Gross sales
Building Products1,250 1,108 2,270
International Businesses1,045 1,005 2,017
Distribution1,757 1,644 3,287
Residential & Land Development236 163 420
Construction1,001 1,150 2,246
Other5 5 9
Total5,294 5,075 10,249
Intercompany sales(405)(462)(850)
External sales per income statement4,889 4,613 9,399
External sales
Building Products1,000 859 1,783
International Businesses1,034 997 1,999
Distribution1,665 1,559 3,112
Residential & Land Development236 163 420
Construction954 1,035 2,085
External sales per income statement4,889 4,613 9,399
Funds*
Building Products1,713 1,686 1,666
International Businesses2,055 1,948 1,938
Distribution983 1,039 935
Residential & Land Development562 477 541
Construction(330)366 174
Other (including debt and taxation)(1,688)(1,788)(1,674)
Total3,295 3,728 3,580
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes.
22
Fletcher Building Half Year Review December 2017

Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
EBIT before significant items
Building Products118 129 267
International Businesses69 70 169
Distribution89 84 193
Residential & Land Development47 30 130
Construction(619)24 (204)
Other(26)(27)(30)
Total(322)310 525
Significant items–(16)(252)
Earnings before interest and taxation (EBIT) per
income statement(322)294 273
Supplementary Non-GAAP disclosures:
The following supplementary Non-GAAP disclosures have been made to provide additional, useful information.
Earnings before interest and taxation (EBIT) as reported(322)294273
Buildings + Interiors ("B+I") operating earnings(631)(47)(292)
Earnings before interest and taxation (EBIT) excluding B+I309341565
23 Fletcher Building Half Year Review December 2017

Notes to the consolidated financial statements
1. BASIS OF PRESENTATION
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 Financial Markets Conduct Act
2013 reporting entity in terms of the Financial
Reporting Act 2013 under which the interim
financial statements are prepared. The Company
is a profit oriented entity. The condensed
consolidated interim financial statements have
been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand,
which is the New Zealand equivalent to
International Financial Reporting Standards
(NZ IFRS). They comply with NZ IAS 34 Interim
Financial Reporting and should be read in
conjunction with the 30 June 2017 annual
report available on the Group website at
www.fbu.com.
2. GOING CONCERN
As at 31 December 2017, the Group was in
breach of certain covenants in relation to
the Bank loans under its Syndicated Facility
Agreement and in relation to its Private
Placement debt (together ‘borrowings’).
This breach is an event of default under the
agreements governing those borrowings.
As a result of the breach, $434m of the Group’s
Bank loans balance and $1,150m of the Group’s
Private Placement debt balance have been
reclassified to current liabilities (Refer Note 7)
as the Group did not have the unconditional
right to defer repayment of these borrowings
at 31 December 2017.
On 13 February 2018, the lenders under the
Syndicated Facility Agreement provided a
waiver in respect of the 31 December 2017
covenant breach and agreed, subject to various
conditions, to continue to make available
funding of $325 million until 31 March 2018.
The terms of that waiver require the Group to
agree revised terms under the Syndicated
Facility Agreement by 31 March 2018, otherwise
the Group would then be in breach of the waiver.
A similar waiver to that which has been obtained
from the lenders under the Syndicated Facility
Agreement has been sought from the holders
of the Group’s Private Placement debt.
The Group is now working with its funders
to agree revised terms for the agreements
governing the borrowings such that the
borrowings are not required to be repaid
within the next 12 months. The Group is targeting
the end of March 2018 to complete this.
In the event that the Group is unable to agree
revised terms in relation to the Bank loans and
the Private Placement debt, the Group would
also consider alternative borrowing arrangements
and/or potential recapitalisation options.
In preparing the interim financial statements,
the Directors have assessed the Group’s ability
to continue as a going concern. In making this
assessment, the Directors have considered the
level of debt and facilities the Group had at
31 December 2017, the status of the Group’s
discussions with its funders (including the
waiver obtained from lenders under the
Syndicated Facility Agreement in respect of the
31 December 2017 covenant breach), the Group’s
forecast financial results for the next 12 months
subsequent to the date of issue of these interim
financial statements and the alternative funding
options for the Group noted above.
Whilst material uncertainties exist, the Directors
consider that there is a reasonable expectation
that revised terms will be agreed with the
funders of the Bank loans and the Private
Placement debt, such that funding will be
available to the Group to enable it to continue
to meet its liabilities as they fall due. Taking
this into account and the expected financial
performance of the Group and the positive
operating cash flows of the Group (inclusive
of the cash flows relating to the Building and
Interiors business unit), it is the considered
view of the Directors that the Group is a
going concern.
24 Fletcher Building Half Year Review December 2017

The Directors do, however, acknowledge that
if the Group is unable to obtain all applicable
waivers, or successfully renegotiate revised
terms with the funders of the Bank loans and
the Private Placement debt or secure alternative
sources of funding to enable the repayment of
the Group’s current borrowings, then the going
concern assumption may not be valid, the
consequence being the Group may be unable
to realise the value in its assets and discharge
its liabilities in the normal course of business.
These financial statements do not include any
adjustments that may be made to reflect the
position should the Group be unable to continue
as a going concern. Such adjustments may
include realising assets at amounts other than
those at which they are recorded in the financial
statements. In addition, the Group may have to
provide for further liabilities that may arise and
to reclassify certain non-current assets and
other liabilities as current.
3. CHANGES IN ACCOUNTING POLICIES
The accounting policies and computation
methods applied in the preparation of the
interim financial statements are consistent
with those applied in the last annual financial
statements with the exception of the Group
adopting NZ IFRS 9 (2014) Financial Instruments
(“NZ IFRS 9”) from 1 July 2017.
NZ IFRS 9 sets out new requirements for
classification and measurement, impairment
and hedge accounting for financial assets and
financial liabilities. It replaces NZ IAS 39 Financial
Instruments: Recognition and Measurement
(“NZ IAS 39”). The impact of adopting NZ IFRS 9
is summarised below:
• NZ IFRS 9 introduces new classification and
measurement requirements for financial
assets and liabilities that are within the scope
of NZ IAS 39. There have been no changes
to the classification or carrying amounts of
financial assets and financial liabilities in
the statement of financial position under
NZ IFRS 9.
• The hedge accounting rules in NZ IFRS 9
align hedge accounting more closely with
the Group’s risk management activities and
the effectiveness test has been replaced
with the principle of an economic relationship.
The adoption of NZ IFRS 9 did not result in
significant changes to the Group’s hedge
accounting relationships. The Group has
elected to apply the hedge accounting
requirements on a retrospective basis
from the date of initial application where
permitted under NZ IFRS 9.
• The NZ IFRS 9 impairment requirements
are based on an expected credit loss model,
replacing the incurred loss methodology
under NZ IAS 39. The Group has applied
the simplified approach for trade and other
receivables, with the impact of NZ IFRS 9
being immaterial.
A number of new standards, amendments
and interpretations have been issued by the
International Accounting Standards Board and
the External Reporting Board in New Zealand
that are not yet effective and have not been
early adopted by the Group. Those which may
be relevant to the Group are set out below:
NZ IFRS 15 Revenue from Contracts with
Customers, was issued on 3 July 2014 and
addresses recognition and measurement of
revenue. It replaces the separate models for
goods, services and construction contracts
currently included in IAS 11 Construction
Contracts and IAS 18 Revenue. It is required
to be adopted by the Group in the financial
statements for the year ending 30 June 2019.
Management are currently completing an
assessment of the impact of this standard.
It is expected that our Construction and
Residential and Land divisions will be most
impacted by the new standard due to the
significant number and variety of customer
contracts that they have.
25 Fletcher Building Half Year Review December 2017

Notes to the consolidated financial statements continued
NZ IFRS 16 Leases, was issued on 11 February 2016 and requires all leases to be recognised on the
balance sheet. Currently, under IAS 17 Leases only those leases categorised as finance leases are
required to be recognised on the balance sheet. NZ IFRS 16 is required to be adopted by the Group in
the financial statements for the year ending 30 June 2020.
Management are currently conducting an assessment of the impact of this standard. As the majority
of businesses in the Group have leases, the impact of NZ IFRS 16 on the Group financial statements is
expected to be significant.
4. SIGNIFICANT ITEMS
Six months ended 31 December 2017
There were no significant items for the six month period ended 31 December 2017.
Six months ended 31 December 2016
Business
acquisition
expenses
(1)

NZ$M
Site closure
costs
(2)
NZ$M
Total
NZ$M
Fletcher Insulation(10)(10)
Rocla Products(5)(5)
Corporate(1)(1)
Total significant items before taxation(1)(15)(16)
Tax benefit/(charge) on above items 5 5
Total significant items after taxation(1)(10)(11)
(1) On 29 July 2016, the Group acquired Higgins Group Holdings Limited (“Higgins”). Costs of $1 million
associated with the transaction were incurred in the period.
(2) In the six months ended 31 December 2016 the Group recognised a charge of $15 million for
costs associated with site closures:
– $10 million relating to the closure of Fletcher Insulation’s Homebush site in New South Wales
announced in December 2016; and
– $5 million relating to two site closures in the Rocla Products business.
26 Fletcher Building Half Year Review December 2017

Year ended 30 June 2017
Business
acquisition
expenses
(1)

NZ$M
Site closure
costs
(2)

NZ$M
Impairments
(3)
NZ$M
Other
(4)
NZ$M
Total
NZ$M
Building Products (17) (69) (12) (98)
Distribution (153) (153)
Corporate (1) (1)
Total significant items before taxation(1)(17)(222)(12)(252)
Tax benefit / (charge) on above items 5 16 4 25
Total significant items after taxation(1)(12)(206)(8)(227)
(1) On 29 July 2016, the Group acquired Higgins Group Holdings Limited (“Higgins”). Costs of $1 million
associated with the transaction were incurred in the year.
(2) The Group recognised a charge of $17 million for costs associated with site closures:
– $10 million relating to the closure of Fletcher Insulation’s Homebush site in New South Wales; and
– $7 million relating to two site closures in the Rocla Products business.
(3) During the year, the Group recognised a $222 million impairment charge, relating to businesses
where the carrying amount exceeded the recoverable amount:
– $69 million relating to Iplex Australia where goodwill and brands were impaired; Offsetting the
impairment of brands is an $11 million reversal of the associated deferred tax liability through
tax expense;
– $153 million relating to Tradelink where goodwill and other intangibles were impaired.
(4) The Group recognised a charge of $12 million relating to the costs associated with prolonged
industrial action during the year at a Fletcher Insulation site in Australia.
27 Fletcher Building Half Year Review December 2017

Notes to the consolidated financial statements continued
5. OTHER GAINS AND LOSSES

Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Other gains and losses include the following:
Gain on sale of assets13
Redundancies and restructuring costs(8)(7)(8)
Other(14)(1)3
(22)(8)8
6. TAXATION EXPENSE

Six months
Dec 2017
NZ$M
Six months
Dec 2016
NZ$M
Year ended
June 2017
NZ$M
Earnings/(loss) before taxation:(385)242162
Taxation at 28 cents per dollar (108)6845
Adjusted for:
Higher/(lower) tax rate in overseas jurisdictions(1)(1)(4)
Non assessable income(6)(1)(20)
Non deductible expenses2150
Utilisation of previous unrecognised tax losses(1)
Tax in respect of prior years(1)
Tax losses not recognised355
Other permanent differences(7)(10)(18)
(117)6157
Tax (benefit)/expense on earnings before significant items(117)6682
Tax benefit on significant items(5)(25)
(117)6157
The deferred tax asset balance of $182 million at 31 December 2017 largely comprises construction
losses provided for in the period which are expected to be deductible in future years. These losses
relate to New Zealand projects, and it is expected there will be sufficient future earnings in New Zealand
to utilise the deferred tax asset.
28 Fletcher Building Half Year Review December 2017

7. BORROWINGS

Dec 2017
NZ$M
Dec 2016
NZ$M
June 2017
NZ$M
Bank loans434
Capital notes716871
Private placements1,150137139
Other loans4610959
Borrowings – current1,701 314 269
Bank loans415 389
Capital notes550 316 329
Private placements1,160 1,123
Other loans57 65 62
Borrowings – non-current607 1,956 1,903
Carrying value of borrowings (as per balance sheet)2,308 2,270 2,172
Less: impact of debt hedging activities (included within
derivatives)(48)(79)(42)
Borrowings after impact of hedging activities2,260 2,191 2,130
Add/(Less): fair value hedge adjustment included in
borrowings13 (1)
Borrowings excluding derivative adjustments2,273 2,190 2,130
Net Debt
Cash and cash equivalents190229219
Current borrowings(1,701)(314)(269)
Non-current borrowings(607)(1,956)(1,903)
Net Debt(2,118)(2,041)(1,953)
As a result of the breach of covenants at 31 December 2017, the Bank loans balance of $434 million
and Private placements balance of $1,150 million have been reclassified from non-current to current
liabilities. Further infomation in respect of the Group's subsequent discussions with its funders has
been included in Note 2.
29 Fletcher Building Half Year Review December 2017

Notes to the consolidated financial statements continued
8. CONSTRUCTION CONTRACTS
Dec 2017
NZ$M
Dec 2016
NZ$M
June 2017
NZ$M
Gross construction work in progress plus margin to date/less
provisions for losses5,603 3,903 5,877
Progress billings(6,335)(3,931)(6,091)
(732)(28)(214)
Construction contracts with cost and margin in advance
of billings12 86 62
Construction contracts with billings in advance of cost
and margin(115)(91)(114)
Provision for future net cash outflows on loss-making contracts(629)(23)(162)
Carrying amount at the end of the period(732)(28)(214)
Included in sales is $954 million of contract revenue (December 2016: $1,031 million, June 2017:
$2,081 million).
Construction work in progress is stated at cost plus profit recognised to date, less progress billings
and any provision for future foreseeable losses. 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.
Estimates and judgements are made relating to a number of factors when assessing Construction
Contracts. These include recovery of pre-contract costs, assessment of future costs following
changes in the scope of work, contract programmes, maintenance and defects liabilities,
performance bonuses or penalties and changes in costs in determining the amount of revenue
and margin to be recognised at each reporting date. Recognition of additional revenues which flow
from contract variations and claims, which at reporting date may have not yet been presented to or
accepted and approved by customers, also requires significant judgement.
30 Fletcher Building Half Year Review December 2017

Estimates made are inherently more uncertain earlier in the project's life and on larger, more complex
projects. A summary of the Group's major construction projects and their approximate stage of
completion is shown below:
Status of construction projects ( > $200m original contract value) as at 31 December 2017:
Business Unit
Percentage of
completion
(% cost)
Forecast
completion
Commercial Bay – Fixed price contractB+I39%2019
NZICC – Guaranteed maximum price and fixed
price contract
B+I22%2019
Puhoi to Warkworth – Fixed price contract (Public Private
Partnership)
Infrastructure21%2021
Auckland East Prison – Fixed price contract (Public Private
Partnership)
B+I85%2018
Hamilton City Edge Expressway – Alliance contractInfrastructure/
Higgins
42%2020
Justice and Emergency Precinct – Fixed price contractB+I99%2018
Revenue Backlog by Business Unit as at 31 December 2017:
Current
Revenue
Backlog
Top 5
projects
as a % of
Revenue
Backlog
Building + Interiors92661%
Infrastructure68284%
Higgins64817%
South Pacific6179%
2,317N /A
31 Fletcher Building Half Year Review December 2017

Notes to the consolidated financial statements continued
9. GOODWILL
The Group performs a detailed impairment
assessment annually and considers indicators of
impairment at each interim reporting date. At 31
December 2017, the Group performed a review
of indicators of impairment for all significant
cash-generating units. These reviews did not
give rise to any impairment charges.
10. 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).
Financial instruments measured and recognised
at fair value are derivatives that are designated in
hedge relationships. The fair value of base metal
price swaps is based on the quoted market
prices of those instruments and are measured
under level 2. All other 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
are 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 by discounting future principal
and interest cash flows at current market interest
rates plus an estimated credit margin that are
available for similar financial instruments. The
interest rates across all currencies used to
discount future principal and interest cash flows
are between 1.70% and 7.14% (December 2016:
1.62% and 7.48%; June 2017: 1.69% and 9.98%)
including margins.
11. CONTINGENCIES AND COMMITMENTS
Provision has been 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, lease commitments, contingent
liabilities or contingent assets to those disclosed
in the 2017 annual report.
32 Fletcher Building Half Year Review December 2017

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Melbourne, VIC 3001, Australia
Yarra Falls, 452 Johnston Street
Abbotsford, VIC 3067, Australia
T. 1800 501 366 (within Australia)
T. +61 3 9415 4083 (outside Australia)
F. +61 3 9473 2500
Other investor enquiries
Fletcher Building Limited
Private Bag 92 114
Auckland 1142, New Zealand
T. +64 9 525 9000
E. moreinfo@fbu.com
Other information
www.fbu.com
Registered offices
New Zealand
Fletcher Building Limited
Private Bag 92 114
Auckland 1142
New Zealand
Fletcher House
810 Great South Road
Penrose, Auckland 1061
New Zealand
T. +64 9 525 9000
Australia
Fletcher Building Australia
Locked Bag 3501
North Ryde BC
NSW 1670, Australia
68 Waterloo Road
Macquarie Park
NSW 2113, Australia
T. +61 2 8986 0900
ARBN 096 046 936
insight
creative.co.nz
FLE107
33 Fletcher Building Half Year Review December 2017

---

1

Reported results Six months ended 31 December
NZ$m (except where noted) 2017 2016 Change %
Total revenue 4,889 4,613 6%
Operating earnings before significant items
1
(322) 310 NM
Significant items
2
0 (16) NM
Operating earnings (EBIT) (322) 294 NM
Funding costs (63) (52) 21%
Earnings/(loss) before tax (385) 242 NM
Tax benefit/(expense) 117 (61) NM
Earnings/(loss) after tax (268) 181 NM
Non-controlling interests (5) (5) 0%
Net earnings/(loss) (273) 176 NM
Net earnings/(loss) before significant items (273) 187 NM


Basic earnings per share (cents) (39.2) 25.4 NM
Basic earnings per share before significant items (cents) (39.2) 27.0 NM
Dividends declared per share (cents) 0.0 20.0 NM
Cash flows from operating activities 110 (67) NM
Capital expenditure 131 127 3%

Operating earnings before significant items (322) 310 NM
Building & Interiors (B+I) (631) (47) NM
Operating earnings (excluding B+I) before significant items 309 357 (13)%

1
Operating earnings 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 2017.
2
Details of significant items can be found in note 4 of the interim financial statements.

 Revenue for the period of $4,889 million was $276 million, or 6%, higher when compared with the prior
corresponding period;
 Operating earnings before significant items were a loss of $322 million, which included losses in the Building +
Interiors (“B+I”) business of $631 million;
 There were no significant items recognised during the period (2016: a charge of $16 million);
 Operating earnings (excluding B+I) before significant items of $309 million were $48 million, or 13%, lower than
the prior corresponding period;
 Net earnings were a loss of $273 million, down from a profit of $176 million in the prior corresponding period;
 In line with the Company’s Dividend Policy, the Board has determined that it will not declare an interim
dividend.

2
Financial Results

Six months ended 31 December

Revenue
NZ$m 2017 2016 Change
Building Products

1,250 1,108 13%
International 1,045 1,005 4%
Distribution

1,757 1,644 7%
Residential and Land Development

236 163 45%
Construction

1,001 1,150 (13%)
Other

5 5 0%
Gross revenue 5,294 5,075 4%
less intercompany sales (405) (462) (12%)
Group external revenue 4,889 4,613 6%


Six months ended 31 December
Reported operating earnings
Operating earnings
before significant items
1

NZ$m 2017 2016 Change 2017 2016 Change
Building Products 118 114 4% 118 129 (9%)
International 69 70 (1%) 69 70 (1%)
Distribution 89 84 6% 89 84 6%
Residential and Land
Development
47 30 57% 47 30 57%
Construction (619) 24 NM (619) 24 NM
Corporate
(26)
(28) (7%) (26) (27) (4%)
Total (322) 294 NM (322) 310 NM
Funding costs
(63)
(52) 21%
(63)
(52) 21%
Earnings before tax (385) 242 NM (385) 258 NM
Tax benefit/(expense)
117 (61)
NM
117
(66) NM
Earnings after tax (268) 181 NM (268) 192 NM
Non-controlling interests
(5) (5)
0%
(5)
(5) 0%
Net earnings (273) 176 NM (273) 187 NM

1
Operating earnings 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 2017.
2
Details of significant items can be found in note 4 of the interim financial statements.

3



Geographic segments

Six months ended 31 December
Gross revenue External revenue
NZ$m 2017 2016 Change 2017 2016 Change
New Zealand 3,093 3,015 3% 2,750 2,607 5%
Australia 1,587 1,419 12% 1,537 1,374 12%
Rest of World 614 641 (4%) 602 632 (5%)
Total 5,294 5,075 4% 4,889 4,613 6%


Geographic segments

Six months ended 31 December

Operating earnings before
significant items
1

NZ$m 2017 2016 Change
New Zealand
(425)
205 NM
Australia 63 52 21%
Rest of World 40 53 (25%)
Total (322) 310 NM


Geographic segments in local
currency

Six months ended 31 December

Gross Revenue External revenue
2017 2016 Change 2017 2016 Change
Australia (A$m) 1,459 1,352 8% 1,413 1,309 8%
Rest of World (US$m) 440 457 (4%) 431 450 (4%)

Geographic segments in local
currency

Six months ended 31 December


Operating earnings before
significant items
1

2017 2016 Change
Australia (A$m) 58 50 16%
Rest of World (US$m) 29 38 (24%)

1
Operating earnings 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 2017.
2
Details of significant items can be found in note 4 of the interim financial statements.

Financial Results
continued

4



 External revenue of $4,889 million was $276 million or 6% higher than the prior corresponding period. New
Zealand revenue increased by $143 million or 5%, and Australian revenue increased by $163 million or 12%. In
local currencies, revenue increased by 5% in New Zealand, increased by 8% in Australia and decreased by
4% in the Rest of World.
 In New Zealand, earnings were significantly impacted by the performance of the B+I business. In addition the
other Construction NZ businesses reported lower earnings, principally due to timing of earnings on major
projects. Excluding Construction NZ, earnings were in line with the prior corresponding period. The Residential
and Land Development division showed strong growth, while increased revenue for the Building Products
division was offset by cost pressures.
 In Australia, market conditions were mixed, with robust activity in Eastern states offset by continued
challenging trading conditions in Western Australia. Several Australian businesses were impacted by
increased energy costs, particularly Laminex and Fletcher Insulation, with the latter also recording a $5m one-
off restructuring charge. Despite this, Australian operating earnings before significant items increased 16% in
local currency. This was driven by improvements in Iplex Australia, Stramit, and Tradelink, as well as a
contribution of $13 million from the Land Development business in Australia.
 In the Rest of World, earnings in local currency were mixed, with a strong performance from Formica driven
by a 9% increase in revenue in local currencies. This was offset by earnings decreases in the Roof Tile Group
and Construction South Pacific, due to a roll-off of major projects in Fletcher Construction South Pacific.
 Funding costs of $63 million were 21% higher than the prior corresponding period, reflecting both increased
borrowings and that the prior year expense included a $5 million credit due to the impact of derivatives
valuations.
 The tax benefit of $117 million reflects the loss for the period, with the B+I loss provisions expected to be
deductible in future periods.
 Earnings per share were (39.2) cents compared with 25.4 cents per share in the prior corresponding period.
 A cash inflow from operations of $110 million compared with an outflow of $67 million in the prior
corresponding period.








Financial Results
continued

5
Segmental Operational Review
The following sections provide commentary on individual division results for the period ended 31 December 2017.

Building Products
Concrete Pipes & Products; Cement & Aggregates; Building Materials; Plastic Pipes; JV Earnings and Other


Six months ended 31 December
NZ$m 2017 2016 Change Change %
Gross revenue
1,250 1,108 142 13%
External revenue
1,000 859 141 16%
Operating earnings before significant items
1

118 129 (11) (9)%
Significant items
2

- (15) 15 NM
Operating earnings
118 114 4 4%
Funds
1,713 1,686 27 2%


Six months ended 31 December

Operating earnings before significant items
1

NZ$m

2017 2016 Change
Concrete Pipes & Products

18 26
(31)%
Cement & Aggregates

34 38
(11)%
Building Materials

46 53
(13)%
Plastic Pipes

11
7 57%
JV Earnings & other

9 5
80%
Total

118 129 (9)%

1
Operating earnings 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 2017.
2
Details of significant items can be found in note 4 of the interim financial statements.
The Building Products division reported gross revenue of $1,250 million compared with $1,108 million in the prior
corresponding period. The 13% increase in revenue has resulted from improved sales volumes and price
increases in the majority of business units, and especially Firth and Iplex Australia.
The division’s operating earnings before significant items were $118 million, compared with $129 million in the
prior corresponding period, a reduction of 9%. This reflects some contraction in gross margin as well as one-off
redundancy costs of $5 million in Fletcher Insulation and a fire event at one of the Humes sites which reduced
operating earnings by a further $3 million.
Gross margin contraction in the division is largely a result of the following factors:
 Increased energy costs of approximately $6 million, particularly impacting GBC Winstone, Fletcher
Insulation and the Iplex businesses in both Australia and New Zealand;
 Adverse product mix change, particularly impacting GBC Winstone, Humes, and Iplex New Zealand;
 Transitional costs associated with commissioning of new plants in the Fletcher Insulation and Firth
masonry businesses;
 Additional costs incurred in various businesses to alleviate capacity constraints and support current and
expected increased volumes. This includes transitional costs associated with developing new quarry
deposits and additional warehousing to meet increased current and expected future volumes of
plasterboard.
Operating earnings for Concrete Pipes & Products were $18 million compared to $26 million in the prior
corresponding period, a reduction of 31%. Ready-mix concrete sales volumes increased by 4% but masonry
sales volumes reduced by 8%, partially driven by production challenges of commissioning and transition to a
new lower cost plant which is now complete. Concrete pipe volumes were higher in both Australia and New

6
Zealand. Costs resulting from a fire in one of the major Humes branches in Auckland contributed to the reduced
earnings by $3 million.
The Cement & Aggregates businesses reported a reduction in operating earnings of 11% to $34 million. Domestic
cement sales volumes increased 5% while aggregates volumes increased by 12% compared to the prior
corresponding period. The reduced earnings were primarily attributable to higher energy costs, increased
operating costs associated with opening up new quarry resources, and an unfavourable mix of regional quarry
sales.
Building Materials operating earnings were $46 million, a decrease of 13% versus the prior corresponding period.
Overall plasterboard volumes were consistent with the prior corresponding period, with performance board
volumes demonstrating a modest increase. Costs increased in the period due to one-off raw material supply
issues coupled with increased supply chain costs, as expanded warehousing facilities have been implemented.
Australian glasswool sales volumes increased by 7% from the prior corresponding period contributing to revenue
growth of 4%. Notwithstanding the increased revenue, the market remains highly competitive, placing pressure
on profit margins. Increased costs from redundancy payments and other transitional costs as the Sydney and
Melbourne plants implement automation projects have reduced operating earnings to date but will result in
lower costs in future periods. Excluding redundancy payments, the Australian operating earnings were in line
with the prior corresponding period.
The Plastic Pipes businesses reported $11 million operating earnings, a $4 million improvement on the prior
corresponding period. Volumes in both Australia and New Zealand increased compared with the prior
corresponding period. Substantial energy cost increases in Australia and New Zealand subdued what would
have otherwise been an even higher year on year improvement in earnings.

7

International
Laminex; Formica; Roof Tile Group
Six months ended 31 December
NZ$m 2017 2016 Change Change %
Gross revenue 1,045 1,005 40
4%
External revenue 1,034 997 37
4%
Operating earnings 69 70 (1)
(1)%
Funds 2,055 1,948 107 5%


Six months ended 31 December

Operating earnings
NZ$m 2017 2016 Change
Laminex 43 45
(4)%
Formica 42 34
24%
Roof Tile Group (4) 2
NM
International divisional costs (12) (11)
9%
Total 69 70 (1)%

Operating earnings for the International division were $69 million, down 1% from $70 million in the prior
corresponding period. Gross revenue was up by 4%, due principally to strong performances in the Formica
businesses.
Laminex operating earnings were $43 million, down by 4% from $45 million in the prior corresponding period.
Gross revenue in domestic currencies were largely flat across both New Zealand and Australia when compared
to the prior corresponding period. In Australia, gross revenue varied by state with the subdued residential market
in Western Australia leading to reduced demand compared to the prior corresponding period, while trading
conditions in the Eastern states remained supportive. In Australia, margins were down on last year mainly as the
result of a shift in product mix to some lower margin categories and increases in input costs – especially energy –
that could not be fully passed on. The business is a large user of electricity in its Gympie medium density
fibreboard and Dardanup particle board factories with total energy costs increasing by 36% over the prior
corresponding period.
Competitive pressures both locally and from overseas remained strong although the business in both Australia
and New Zealand grew market share in key product categories while continuing its programme of operational
efficiencies and new product initiatives, such as the introduction of new anti-finger print laminate.
Operating earnings for Formica were $42 million, up by 24% from $34 million in the prior corresponding period.
Gross revenue was up by 8%, while in domestic currencies it was up by 9% on the prior corresponding period.
In North America, gross revenue in domestic currencies was up by 3% while operating earnings in domestic
currencies were up by 14% driven by higher margins from improved product mix, successful introduction of new
products including anti-finger print laminate, continued improvements in operational performance at both
manufacturing sites, and recovery of the Mexican currency relative to the US dollar.
In Asia, gross revenue in domestic currencies was up by 11% driven by continued improvement in activity levels
in the major markets. Performance in China remained strong with revenue up by 36% on the prior corresponding
period driven by strong project growth and market share gains. Thailand and Taiwan were up by 5% and 1%
respectively while Malaysia, Hong Kong, and Singapore were down by 18%, 5% and 2% respectively. Operating
earnings in Asia were up by 28% on the prior corresponding period, due to both overall sales growth across the
region coupled with continuing improvements in the operating facilities, especially the high-pressure laminate
factory in Jiu Jiang, China, which is now operating at consistently improved efficiencies and utilisation rates.

Segmental Operational Review
continued

8
In Europe, gross revenue in domestic currencies was up by 4% compared to the prior corresponding period
driven by improvements in the UK, Spain and Germany. The operating result was in line with the prior
corresponding period. Operational performance continued to improve, especially at the North Shields factory,
although this was offset by an adverse shift in product mix with higher sales of lower margin thick laminate, and
increased costs from investments in the commercial and sales operation to support the improvements in market
share.
Roof Tile Group operating earnings were a loss of $4 million, a decrease of $6 million from the prior
corresponding period. Gross revenue was down 17% on the prior corresponding period. This was the result of
continued declines in Africa sales volume, down by 16%, while Japan revenue was down by 46% due to a key
customer moving to a dual supply situation and the end of a special sales program for solar product. New
Zealand revenue was down by 4%, while bad weather in a number of US states such as Florida and Texas were
the key drivers for revenue being down by 11% on the prior corresponding period. Performances in other key
global markets including Europe and Asia were up by 7% on the prior corresponding period.

9


Distribution
NZ Building Supplies; NZ Steel Distribution; Australian Building Supplies; Australian Steel Distribution


Six months ended 31 December
NZ$m 2017 2016 Change Change %
Gross revenue
1,757
1,644 113
7%
External revenue
1,665
1,559 106
7%
Operating earnings 89 84 5
6%
Funds 983 1,039 (56) (5)%


Six months ended 31 December

Operating earnings
NZ$m

2017 2016 Change
NZ Building Supplies

49 47
4%
NZ Steel Distribution

23 25
(8)%
Australian Building Supplies

4 2 100%
Australian Steel Distribution

13 10
30%
Total

89 84 6%

The Distribution division’s operating earnings for the period were $89 million, an increase of $5 million or 6% on
the prior corresponding period.
Following the record performance in FY17, the New Zealand Building Supplies businesses continued momentum
despite an unseasonably wet spring, adversely impacting demand in the first quarter. The New Zealand Building
Supplies businesses grew both gross revenue and earnings by 4% on the prior corresponding period with growth
across all regions of New Zealand except Christchurch, which continues to re-establish normal trading following
the significant earthquake rebuild period. PlaceMakers delivered strong performance in core product
categories, whilst increasing penetration in some higher-margin categories and continuing to develop its
installed solution offer. Mico delivered above market growth with targeted improvements in back of wall
categories and continued momentum in front of wall offerings following strong performance in the prior year.
Mico opened a new branch in Gore during the period and will open another branch in Auckland early in the
second half of the year.
The New Zealand Steel Distribution businesses grew gross revenue by $28 million or 12% in the period with good
momentum in roofing and share gains in EasySteel. The roofing performance was bolstered by the April 2017
acquisition of the Calder Stewart Roofing business. Fletcher Reinforcing had strong volumes throughout the
period, however, underlying earnings were negatively impacted by the effects of steel price rises and higher
operating costs during a transition to a new facility in Auckland.
The Australian Building Supplies business generated operating earnings of $4m, buoyed by new branch
expansion, targeted buying efficiencies, and controlled operating costs.
Tradelink delivered gross revenue of $381 million in local currency, which was an increase of 6% on the prior
corresponding period, driven by the branch expansion program and a strategic focus on winning back share in
the small to medium and network customer market segments. Following the 20 new branches opened in FY17,
Tradelink plans to open another 17 branches in FY18, with new stores moving to profitability in approximately 4-6
months.
The Australian Steel Distribution business grew gross revenue by $14 million to $262 million in the period and
delivered strong earnings growth of 30% to $13 million. The performance reflects the benefit of Stramit’s strong
customer value proposition, particularly consistently high service levels. The business also commenced a site
consolidation programme for two large manufacturing sites into a new purpose-built facility. This programme of
work will be completed in the balance of FY18 and will deliver further efficiency gains for the business.
Segmental Operational Review
continued

10



Residential and Land Development
NZ Residential; Land Development
Six months ended 31 December
NZ$m 2017 2016 Change Change %
Gross revenue 236 163 73
45%
External revenue 236 163 73
45%
Operating earnings 47 30
17 57%
Funds 562 477 85 18%


Six months ended 31 December

Operating earnings
NZ$m

2017 2016 Change
NZ Residential

30 25
20%
Land Development

17 5
NM
Total

47 30 57%

The Residential and Land Development division reported operating earnings of $47 million, a 57% increase on
the prior corresponding period.
Gross revenue for the half year was $236 million, up from $163 million in the prior corresponding period.
NZ Residential operating earnings were $30 million, 20% higher than the prior corresponding period. There was
an increase in the volumes of units sold to 342 from 188 in the prior period. This reflected an increase in the
number of units available to sell as land purchased in prior years in new locations became available to start
home building. In particular, the subdivisions of Swanson, Whenuapai and Red Beach are now operating at a
sustainable level.
The half year result includes a $12 million provision for a forecast loss on the Atlas Quarter Apartment project in
Christchurch. This reflects a combination of lower than expected selling prices and cost escalations on the
project, mainly due to seismic requirements and higher than expected construction market rates. Excluding the
impact of this provision, NZ Residential earnings were up $17 million, or 68%, on the prior period.
Average margins in Auckland remained strong during the period, however, there was softening of demand in
some locations as the market returns to more normal conditions. In particular, there was an increase in the
number of transactions requiring the sale of the customer’s current home as bridging finance becomes harder
to obtain. The average settlement period lengthened slightly to 36 days.
The Christchurch market remained subdued with no growth in prices over the period. Work commenced on the
East Frame project, with an initial 112 units underway. The next anticipated stage will include a further 59
terrace homes, and the decision on further stages of this development will depend on discussions with
Government on typologies and market conditions.
At 31 December, the NZ Residential business held a total of 3,660 lots on balance sheet. In addition, the business
holds a further 1,150 units under unconditional agreements, to be delivered over the next five years.
Land Development operating earnings in the period were $17 million. This business develops and sells mainly
commercial sites within the Group’s property portfolio which are surplus to operating requirements. First half
earnings comprised the sale of two development locations in Australia, and one in New Zealand.
Whilst Land Development earnings will be irregular in nature, it is anticipated that the business will earn at least
$25 million per annum over the next five years.
Funds employed in the division increased to $562 million from $541 million at 30 June 17, reflecting an increase in
work in progress in both the NZ Residential and Land Development businesses.
Segmental Operational Review
continued

11



Construction
Construction New Zealand; Construction South Pacific

Six months ended 31 December
NZ$m 2017 2016 Change Change %
Gross revenue 1,001 1,150 (149) (13)%
External revenue 954 1,035 (81) (8)%
Operating earnings (619) 24 (643) NM
Funds (330) 366 (696) NM


Six months ended 31 December

Operating earnings
NZ$m

2017 2016 Change
Construction New Zealand

(629) 1 NM
Construction South Pacific

10 23
NM
Total
(619)
24 NM


The Construction Division reported an operating earnings loss of $619 million compared with a profit of $24
million in the prior corresponding period. This included a loss for the period in B+I of $631 million versus a loss of
$47 million in the prior corresponding period. The result reflects additional loss provisions recorded on a number
of key projects. Operating earnings excluding B+I were $12 million compared to $71 million in the prior
corresponding period.
The division recorded gross revenues of $1,001 million. At 31 December 2017, the backlog of work for the division,
being the value of contracted work awarded but not completed, was $2.3 billion compared with $2.7 billion at
31 December 2016.
Given the scale of the challenges in B+I, this business unit’s sole focus will be on project completion. This means
the B+I business will not be bidding for any further vertical construction work in New Zealand, allowing key
resources to be redeployed to project completion. In the longer term, as B+I projects progressively complete,
key resources will be redeployed into other businesses within the Division.
Earnings in the Infrastructure business were impacted by the completion of major infrastructure projects in the
prior period, notably the Waterview Project in Auckland and the Mackays to Peka Peka Expressway north of
Wellington.
The Higgins business continues to perform strongly, operating very successfully under a formula that allows the
business to respond quickly to meet both national and regional clients’ needs through a strong regional network
with national support. Performance has been enhanced by the ongoing participation of both Higgins and the
Infrastructure businesses in the North Canterbury Transport Infrastructure Recovery (NCTIR) Alliance in response
to the Kaikoura Earthquakes.
The Construction South Pacific business (which includes Higgins Fiji) reported earnings of $10 million compared to
$23 million for the same period last year. The reduction reflects the timing of completion of projects by the
Fletcher Construction South Pacific business, with a number of major projects in Fiji and Papua New Guinea
completed in the prior corresponding period.


Segmental Operational Review
continued

12

Group Cash Flow
Six months ended 31 December
NZ$m 2017 2016 Change
Operating earnings before significant items
[1]
(322) 310 (632)
Depreciation and amortisation 110 102 8
Provisions, significant items and other (17) (43) 26
Trading cash flow before working capital movements (229) 369 (598)
Land and developments (28) (164) 136
Contracts 502 (99) 601
Other working capital movements (43) (50) 7
Trading cash flow 202 56 146
Less: cash tax paid (30) (69) 39
Less: interest paid (62) (54) (8)
Cash flows from operating activities 110 (67) 177

Trading cash flow (excluding B+I) 335 152 183


1
Operating earnings 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 2017. Details of
significant items can be found in note 4 of the interim financial statements.

Detailed disclosure of the above line items is included in Fletcher Building Limited’s interim financial statements
which have been released with this Management Commentary.
Cash flows from operating activities of $110 million were $177 million higher than the prior corresponding period.
Trading cash-flows after working capital movements were $202 million, up from $56 million in the prior
corresponding period. Excluding B+I, trading cash-flows were $335 million, up from $152 million in the prior
corresponding period.
Working capital inflows of $431 million were higher than the prior corresponding period due to the positive balance
for Contracts, largely reflecting the losses recognised but not yet incurred as cash in the Construction division.
Excluding Contracts, working capital outflows were significantly lower than the prior period, reflecting principally
the lower net land and developments investment of $28 million, which was down from $164 million in the prior
corresponding period. In addition there was a lower net working capital investment in the Building Products,
International and Distribution divisions as these divisions placed an increased focus particularly on receivables
and inventory management.
Capital expenditure was $131 million, compared with $127 million in the prior corresponding period. Of this total,
$88 million was for stay-in-business capital projects and $43 million related to new growth initiatives.
For the financial year, capital expenditure is expected to be in the range of $275 million to $325 million and
depreciation is expected to be at the lower end of the range of $225 million to $245 million.

Financial Review

13


Funding
In the trading update on 14 February 2018, the Group announced that due to the additional losses in the B+I
business the Group had breached key banking covenants under both its banking syndicate and United States
Private Placement (‘USPP’) agreements.
Prior to these breaches, the Group had total available funding facilities of $3.1 billion and total net debt of $2.1bn,
resulting in funding headroom of approximately $1.0 billion.
Based on the projected timing of the cash impact of the B+I losses, and the trading of the remainder of Fletcher
Building’s businesses, the Group expects total net debt to peak at between $2.3 billion and $2.4 billion in calendar
2018.
The Group is currently in discussion with its lenders to remedy the covenant breach. To date, the Group has
received a waiver of the breach at 31 December 2017 from its syndicate lenders, and their commitment to
provide the Group with access to continued funding under the existing Facility Agreement.
The Group is working with its syndicate and USPP lenders to agree new covenant terms, targeting completion by
the end of March 2018.



Financial Review
continued

14


In New Zealand, activity levels in the residential, commercial and infrastructure building sectors continue to
operate at or near cyclical peaks, and remain supportive of volumes for Fletcher Building’s Distribution and
Building Products’ businesses. Rates of growth have slowed in the past six months as the industry encounters
supply-side constraints, and overall growth is expected to be broadly flat through the remainder of FY18. House
sales prices and volumes have softened from the highs of FY17, though demand levels are expected to remain
robust in mid-price categories in Auckland where Fletcher Living is focused.
In Australia, activity in the standalone residential sector has held up well to date, though is expected to remain
broadly flat in the second half of FY18 and into FY19. There continues to be a pipeline of large infrastructure
projects on the Eastern Seaboard which is providing opportunities for Fletcher Building’s concrete and plastic
pipe businesses. Australian earnings in total are likely to be driven principally by performance improvements.
Specific divisional commentary in respect of 2018 full year earnings is provided as follows:
• Building Products:
 Continued revenue growth across New Zealand due to sustained demand for residential and
infrastructure focused building products, limited by supply-side industry constraints;
 Increase in Australian based earnings due to operational improvement in Iplex Australia;
 Margin pressure from increased input costs (energy, resin), investment in supply chain and restructuring
costs.
• International:
 Steady revenue and earnings growth in Formica’s North American and Asian businesses based on
exposure to a robust US commercial sector, strong activity levels in China, and continued operational
improvements;
 Pressure on Laminex NZ and Australia margins due to higher input costs and shift in product mix;
• Distribution:
 Continued growth in New Zealand based revenues given maintained levels of activity in residential and
commercial building sectors;
 Modest growth in New Zealand distribution earnings is expected due to improvement in PlaceMakers
and Mico;
 In Australia, the earnings of Tasman Sinkware and Tradelink are expected to improve compared to
FY17.
• Residential and Land Development:
 Residential earnings for FY18 are expected to be similar to the prior year;
 Strength in Auckland standalone housing margins will contrast weaker margins of section sales and
Christchurch volumes;
 Land Development earnings are expected to be lower than in FY17 due to fewer projects coming to
market in the second half of the year and risk around regulatory approvals for planned sales.
• Construction:
 In line with the February 14 announcement B+I is expected to report an EBIT loss of $660m for FY18;
 Higgins’ robust backlog of work and maintenance contracts is likely to produce earnings similar to last
year;
 Infrastructure and South Pacific earnings will be down year on year due to the rolling off of large,
profitable contracts in FY17 and a lag in new projects ramping up.
Outlook

15


Division Business Groupings Key Businesses
Building Products
Concrete Pipes & Products
Firth Concrete (NZ)
CSP Pacific (NZ)
Humes Pipelines (NZ)
Rocla Products (AU)
Cement & Aggregates GBC Winstone (NZ)
Building Materials
Winstone Wallboards (NZ)
Tasman Insulation (NZ)
Fletcher Insulation (AU)
Plastic Pipes Iplex (NZ & Australia)
JV Earnings and other Joint ventures & other
International
Formica
Formica Asia
Formica Europe
Formica North America
Laminex
Laminex New Zealand
Laminex Australia
Roof Tile Group
Gerard Roofing Systems (NZ / Asia /
Europe)
DECRA Roofing Systems (USA)
Distribution
New Zealand Building
Supplies
PlaceMakers
Mico Plumbing
Australian Building Supplies
Tradelink
Tasman Sinkware
New Zealand Steel
Distribution
Pacific Coilcoaters
Easysteel
Fletcher Reinforcing
Dimond
Australian Steel Distribution Stramit
Residential and Land Development
NZ Residential Fletcher Living
Land Development Land Development
Construction
Construction New Zealand
Fletcher Construction
Higgins Construction
Construction South Pacific
Fletcher Construction South Pacific
Higgins Fiji


Divisions

16

Gross revenue
Building Products
Six months ended 31 December
Gross revenue (NZ$m) 2017 2016 Change
Concrete Pipes & Products
454 394 15%
Cement and Aggregates
212 202 5%
Building Materials 255 245 4%
Plastic Pipes 278 241 15%
Joint Ventures & Other 51 26 96%
Total 1,250
1,108
13%




International
Six months ended 31 December
Gross revenue (NZ$m) 2017 2016 Change
Laminex 487 469 4%
Formica 487 450 8%
Roof Tile Group 71 86 (17%)
Total 1,045 1,005 4%



Distribution
Six months ended 31 December
Gross revenue (NZ$m) 2017 2016 Change
NZ Building Supplies 797 765 4%
Australian Building Supplies 431 392 10%
NZ Steel Distribution 267 239 12%
Australian Steel Distribution 262 248 6%
Total 1,757 1,644 7%



Residential and Land
Development
Six months ended 31 December
Gross revenue (NZ$m) 2017 2016 Change
NZ Residential 192 156 23%
Land Development 44 7 NM
Total 236 163 45%



Construction
Six months ended 31 December
Gross revenue (NZ$m) 2017 2016 Change
Construction New Zealand
930
1,033 (10%)
Construction South Pacific 71 117 (39%)
Total 1,001 1,150 (13%)


Appendix:
Supplemental split of Divisional results

17


Local currency gross revenue
The following presents the divisional results in key currency components. These local currency amounts are
translated to New Zealand dollars to present the results on the previous page.

Building Products
Six months ended 31 December
Gross revenue 2017 2016 Change
New Zealand (NZ$m) 808 722 12%
Australia (A$m) 406 368 10%

International
Six months ended 31 December
Gross revenue 2017 2016 Change
New Zealand (NZ$m) 89 88 1%
Australia (A$m)
379 377 1%
Rest of World (US$m) 389 371 5%

Distribution
Six months ended 31 December
Gross revenue 2017 2016 Change
New Zealand (NZ$m) 1,064 1,005 6%
Australia (A$m) 693 607 14%

Residential and Land
Development
Six months ended 31 December
Gross revenue 2017 2016 Change
New Zealand (NZ$m) 198 163 21%
Australia (A$m) 37 NM

Construction
Six months ended 31 December
Gross revenue 2017 2016 Change
New Zealand (NZ$m) 930 1,033 (10%)
Rest of World (US$m) 51 83 (39%)



Appendix:
Supplemental split of Divisional results

18


External revenue
Building Products
Six months ended 31 December
External revenue (NZ$m) 2017 2016 Change
Concrete Pipes & Products
412 342 20%
Cement and Aggregates
113 109 4%
Building Materials 192 183 5%
Plastic Pipes 232 199 17%
Joint Ventures & Other 51 26 96%
Subtotal 1,000
859 16%


International
Six months ended 31 December
External revenue (NZ$m) 2017 2016 Change
Laminex 477 460 4%
Formica 487 452 8%
Roof Tile Group 70 85 (18%)
Total 1,034 997 4%



Distribution
Six months ended 31 December
External revenue (NZ$m) 2017 2016 Change
NZ Building Supplies 777 740 5%
Australian Building Supplies 427 391 9%
NZ Steel Distribution 204 185 10%
Australian Steel Distribution 257 243 6%
Total 1,665 1,559 7%



Residential and Land
Development
Six months ended 31 December
External revenue (NZ$m) 2017 2016 Change
NZ Residential 192 156 23%
Land Development 44 7 NM
Total 236 163 45%



Construction
Six months ended 31 December
External revenue (NZ$m) 2017 2016 Change
Construction New Zealand 886 918 (3%)
Construction South Pacific 68 117 (42%)
Total 954 1,035 (8%)


Appendix:
Supplemental split of Divisional results

19


Local currency external revenue
The following presents the divisional results in key currency components. These local currency amounts are
translated to New Zealand dollars to present the results on the previous page.
Building Products
Six months ended 31 December
External revenue 2017 2016 Change
New Zealand (NZ$m) 597 512 17%
Australia (A$m) 371 331 12%

International
Six months ended 31 December
External revenue 2017 2016 Change
New Zealand (NZ$m) 87 88 (1%)
Australia (A$m)
379 377 1%
Rest of World (US$m) 383 366 5%

Distribution
Six months ended 31 December
External revenue 2017 2016 Change
New Zealand (NZ$m) 982 926 6%
Australia (A$m) 627 601 4%
Other (US$m) 1 NM

Residential and Land
Development
Six months ended 31 December
External revenue 2017 2016 Change
New Zealand (NZ$m) 198 163 21%
Australia (A$m) 37 NM

Construction
Six months ended 31 December
External revenue 2017 2016 Change
New Zealand (NZ$m) 886 918 (3%)
Rest of World (US$m) 49 83 (41%)




Appendix:
Supplemental split of Divisional results

20

Operating earnings before significant items
1

Building Products
Six months ended 31 December
Operating earnings
1
(NZ$m) 2017 2016 Change
Concrete Pipes & Products
18 26 (31%)
Cement and Aggregates
34 38 (11%)
Building Materials 46 53 (13%)
Plastic Pipes 11 7 57%
Joint Ventures & Other 9 5 80%
Subtotal 118
129 (9%)




International
Six months ended 31 December
Operating earnings (NZ$m) 2017 2016 Change
Laminex 43 45 (4%)
Formica 42 34 24%
Roof Tile Group (4) 2 NM
International divisional costs (12) (11) 9%
Total 69 70 (1%)



Distribution
Six months ended 31 December
Operating earnings (NZ$m) 2017 2016 Change
NZ Building Supplies 49 47 4%
Australian Building Supplies 4 2 100%
NZ Steel Distribution 23 25 (8%)
Australian Steel Distribution 13 10 30%
Total 89 84 6%



Residential and Land Development
Six months ended 31 December
Operating earnings (NZ$m) 2017 2016 Change
NZ Residential 30 25 20%
Land Development 17 5 NM
Total 47 30 57%



Construction
Six months ended 31 December
Operating earnings (NZ$m) 2017 2016 Change
Construction New Zealand (629) 1 NM
Construction South Pacific 10 23 (57%)
Total (619) 24 NM


1
Operating earnings 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 2017. Details of
significant items can be found in note 4 of the interim financial statements.

Appendix:
Supplemental split of Divisional results

21

Local currency results
The following presents the divisional results in key currency components. These local currency amounts are
translated to New Zealand dollars to present the results on the previous page.
Building Products
Six months ended 31 December
Operating earnings 2017 2016 Change
New Zealand (NZ$m) 116 124 (6%)
Australia (A$m) 2 5 (60%)

International
Six months ended 31 December
Operating earnings 2017 2016 Change
New Zealand (NZ$m) 8 8 NM
Australia (A$m)
29 33 (12%)
Rest of World (US$m) 21 19 11%

Distribution
Six months ended 31 December
Operating earnings 2017 2016 Change
New Zealand (NZ$m) 72 72 NM
Australia (A$m) 16 11 45%

Residential and Land
Development
Six months ended 31 December
Operating earnings 2017 2016 Change
New Zealand (NZ$m) 34 30 13%
Australia (A$m) 12 NM

Construction
Six months ended 31 December
Operating earnings 2017 2016 Change
New Zealand (NZ$m) (629) 1 NM
Rest of World (US$m) 7 16 (56%)

1
Operating earnings 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 2017. Details of
significant items can be found in note 4 of the interim financial statements.
Appendix:
Supplemental split of Divisional results

---

Building communities,building lives.Fletcher BuildingHalf Year Results Presentation 2018
Half Year Resultsto 31 December 2017
ROSS TAYLOR— Chief Executive OfficerBEVAN MCKENZIE—Chief Financial Officer21 February 2018

Disclaimer2This Half Year Results presentation dated 21 February 2018 provides additional comment on the Interim Report of the same date. As such, it should be read in conjunction with, and subject to, the explanations and views of future outlook on market conditions, earnings and activities given in that Interim Report.
Fletcher Building Half Year Results Presentation | © February 2018

Contents•
Introduction
•
Results Overview
•
Industry Context
•
Divisional Performances
•
Financial Results
•
Update on Strategic Review Process and Group Outlook
•
Appendix
Fletcher Building Half Year Results Presentation | © February 2018
3

Building communities,building lives.Fletcher BuildingHalf Year Results Presentation 2018
Introduction


Been to/ reviewed key B+I projects

Instigated detailed review process

Updated provisions and put in place plans to refocus B+I

Deliver half year results and guidance today

Travelled extensively to many parts of FBU’s operations

Initial customer focus in construction
CEO overview of first three months5
Fletcher Building Half Year Results Presentation | © February 2018
Key Areas of Focus
Get to know
business and
customers
Focus on B+I
and
construction
Get across
operational
outlook
Get strategy &
portfolio work
underway

Strategy work well underway

Market update planned for June 2018

Building communities,building lives.Fletcher BuildingHalf Year Results Presentation 2018
Results Overview

Results overview
Fletcher Building Half Year Results Presentation | © February 2018
7
NZ$m
Dec 2016
6 months
Dec 2017
6 months
Change
$m
Revenue
4,613
4,889
276
Operating earnings before significant items
310
(322)
(632)
Net earnings before significant items
187
(273)
(460)
Cashflow from operating activities
1
(67)
110
177
Basic earnings per share (cents)
25.4
(39.2)
(64.6)
Interim dividend per share (cents)
20.0
0.0
(20.0)
Operating earnings before significant items
ex B+I
357
309
(48)
1. Cashflow from operating activities is EBIT
DA less net interest, less tax, less provisions and net of working capital movements

8
Fletcher Building Half Year Results Presentation | © February 2018
* Number of injuries over the last 12 months rolling per million hours worked
6.6
6.0
6.57.0
7.5
8.0
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Fletcher Building Total Recordable Injury Frequency Rate*
Results overviewSafety performance

Fletcher Building Half Year Results Presentation | © February 2018
9
EBIT¹NZ$m
1. Before significant items
Divisional performancesHY18 vs HY17 EBIT bridge
310
357
309
47
(11)
(1)
5
17
(59)
1
(631)
(322)
HY17 Actual
HY17 B+I
HY17 Actual ex B+I
Building Products
International
Distribution
Residential & Land
Development
Construction ex B+I
Corporate
HY18 Actual ex B+I
B+I
HY18 Actual

Fletcher Building Half Year Results Presentation | © February 2018
10
EBIT¹NZ$m
129
70
84
30
71
(27)
357
(47)
310
118
69
89
47
12
(26)
309
(631)
(322)
Building Products
International
Distribution
Residential & Land
Development
Construction ex B+I
Corporate
Group EBIT ex B+I
B+I
Group EBIT
1. Before significant items
-9%
-1%
+6%
+57%
Divisional performancesOperating earning overview
0%
-13%
HY 2017
HY 2018
-83%

Building communities,building lives.Fletcher BuildingHalf Year Results Presentation 2018
IndustryContext

12
Fletcher Building Half Year Results Presentation | © February 2018
Industry context Revenue exposure to markets
NZ Residential
23%
NZ Commercial
19%
NZ Infrastructure
11%
NZ Other 5%
AU Residential 12%
AU Commercial 8%
AU Infrastructure
4%
AU Other 6%
North America 5%
Asia 3%
Europe 4%
Total Revenues by Market Exposure

5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Total Residential Consents¹
3%
8%
-15%
8%
-20%
-15%
-10%
-5%
0%
5%
10%
NZ
Auckland
Canterbury
Rest of NZ
Change Year on Year
13
Source: Statistics NZ, Infometrics1 – Twelve months rolling
Fletcher Building Half Year Results Presentation | © February 2018
Auckland represents 34% of all consents in the last 12 months to 31 December 2017
Long term average (2001-2017)Peak (2004)
Industry context NZ residential consents up 3%, supported by high net migration
-15,000
0
15,000
30,000
45,000
60,000
75,000
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Net Migration Rolling 12 Month

Industry context NZ non-residential sector still showing year on year growth
Fletcher Building Half Year Results Presentation | © February 2018
14
0
2,000
4,0006,000
8,000
10,000
12,000
14,00016,000
2011
2012
2013
2014
2015
2016
2017
Work done (NZD m)
NZ Infrastructure and Commercial Work
Infrastructure
Commercial
Source: Infometrics – Calendar years
Source: Infometrics – CY2017 growth yoy
4%
10%
-4%
5%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
NZ
Auckland
Canterbury
Rest of NZ
NZ Infrastructure and Commercial Work2017 on 2016 Change

0
50
100
150
200
250
2011
2012
2013
2014
2015
2016
2017
'000s
Standalone houses
Other dwellings
15
Source: BIS – Calendar years
Fletcher Building Half Year Results Presentation | © February 2018
Source: BIS – Calendar years
Industry context Australian residential activity is declining
Australian Residential Approvals
-9%
-8%
-10%
-1%
-13%
-15%
-20%
-15%
-10%
-5%
0%
Australia
NSW
VIC+QLD
SA
WA
Rest
Change Year-on-Year
0k
50k
100k
150k
200k
250k
300k
350k
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17(f)
Net Migration 12 month rolling

Fletcher Building Half Year Results Presentation | © February 2018
16
Source: BIS Shrapnel – calendar years
Industry context Australia Infrastructure and Commercial work showed robust growth in all states but WA
-
20,000
40,000 60,000
80,000
100,000
120,000
140,000 160,000
180,000
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Value of work done (AUDm)
Infrastructure
Non Residential
Australian Infrastructure and Non-residential Work Put in Place
0
20
4060
80
100
120
140160
180
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Value of Work Done (AUDb)
Australia Infrastructure and Commercial Work Put in Place
Infrastructure
Non-Residential
3%
13%
13%
18%
-20%
6%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Australia
NSW
VIC +
QLD
SA
WA
Rest of
Aus
Australia Infrastructure and Commercial Work Change Year on Year

Industry context Formica core markets
Fletcher Building Half Year Results Presentation | © February 2018
17
Key Formica markets
UK
USA
China
Largest marketexposure
Commercial
c70% of total sales
Commercial
c65% of total sales
Commercial
c70% of total sales
Formica market share
20%
36%
36%
Average forecast GDP growth 2017-2022
1
1.6%
1.9%
6.3%
1. Source: IMF World Economic Outlook, October 2017

Building communities,building lives.Fletcher BuildingHalf Year Results Presentation 2018
Divisional Performances

Fletcher Building Half Year Results Presentation | © February 2018
19
Building ProductsResult detail
NZ$m
Dec 2016
6 months
Dec 2017
12 months
change
Gross revenue
1,108
1,250
13%
External revenue
859
1,000
16%
EBITDA¹
167
160
(4)%
EBIT¹
129
118
(9)%
Concrete Pipes & Products
26
18
(31)%
Cement & Aggregates
38
34
(11)%
Building Materials
53
46
(13)%
Plastic Pipes
7
11
57%
Joint Ventures & other
5
9
80%
Trading Cashflow
2
135
109
(19)%
Funds Employed
1,686
1,713
2%
EBITDA¹/gross revenue %
15
13
(2)%
EBIT¹/gross revenue %
12
9
(3)%
ROFE %
15
14
(1)%
Concrete Pipes and Products•
Ready mix concrete volumes increased 4% but masonry volumes fell 8%, operating earnings down 31%
•
Costs resulting from a fire at Humes branch in Auckland reduced earnings by $3m
Cement and Aggregates•
NZ total cement volumes +5%, aggregates volumes +12%
•
Operating earnings -11% due to increased cement supply chain costs plus overstripping costs in quarries
Building Materials•
Plasterboard volumes consistent with last year
•
Reduced EBIT due to higher supply chain costs
Plastic Pipes•
Iplex AU and NZ both reported increased sales volumes and increased operating earnings by 57%
New Zealand•
Building Products revenue was up +12% half-on-half as volumes and prices increased
•
EBIT down due to additional costs incurred to alleviate capacity constraints and support future volumes
Australia•
Building Products revenue was up +10% in local currency as a result of continued momentum in business turnarounds and robust eastern seaboard markets
1. Before significant items2. Trading Cashflow is Operating Cashfl
ow before net interest and cash tax

Building ProductsMarket Outlook
Fletcher Building Half Year Results Presentation | © February 2018
20
Resi
Com
Infra
Other
Total
NZ Building Products
40%
26%
20%
14%
100%
Australia Building Products
23%
6%
54%
17%
100%
Resi
Com
Infra
NZ Building Products
Low
growth
Flat
Growth
Australia Building Products
Flat
Flat
Low
growth
Divisional ExposureMarket Outlook 12 months
Outlook Comments•
Continued revenue growth across NZ
•
Increase in Australian based earnings due to operational improvement in IplexAustralia
•
Continued margin pressure from increased input costs such as resins and electricity
•
Investment in supply chain restructuring and removal of capacity constraints

Fletcher Building Half Year Results Presentation | © February 2018
21
International Result detail
NZ$m
Dec 2016
6 months
Dec 2017
6 months
change
Gross revenue
1,005
1,045
4%
External revenue
997
1,034
4%
EBITDA
104
104
0%
EBIT
70
69
(1)%
Formica
34
42
24%
Laminex
45
43
(4)%
Roof Tile Group
2(4)NM
Trading Cashflow
1
27
76
181%
Funds Employed
1,948
2,055
5%
EBITDA/gross revenue %
10
10
0%
EBIT/gross revenue %
770%
ROFE %
770%
Formica•
Formica businesses grew operating earnings +24% driven by strong sales momentum in Asia
•
North America revenue +3%, EBIT +4% driven by improved sales mix
•
Asia revenue in domestic currencies up 11% due to increased activity levels in key markets, operating earnings up 28%
•
Europe revenue +4% driven by improvement in UK, Spain and Germany; operating earnings flat
Laminex•
Laminex revenue was up +4% while operating earnings -4% due to increased input costs not being fully recovered
Roof Tile Group•
Revenue -17% half-on-half due to decline in Africa and Japan sales, operating earnings went from gain of $2m to loss of $4m
1. Trading Cashflow is Operating Cashflow before
net interest and cash tax, NM = Not Meaningful

InternationalMarket Outlook
Fletcher Building Half Year Results Presentation | © February 2018
22
Resi
Com
Infra
Other
Total
NZ
70%
30%
0%
0%
100%
Australia
30%
25%
0%
45%
100%
Formica N/America
35%
65%
0%
0%
100%
Formica Asia
16%
61%
0%
23%
100%
Formica Europe
20%
74%
0%
6%
100%
Divisional Exposure*Market Outlook 12 months
Outlook Comments•
Expect Laminex NZ and Australia to benefit from low top line growth
•
Threat of imported competing products and mix of growth by state in Australia
•
Pressure on Laminex NZ and Australia margins due to higher input costs and shift in product mix
•
Steady revenue and earnings growth in Formica’s North American and Asian businesses based on:
– Exposure to a robust US commercial
sector;
– Strong activity levels in China, and– Continued operational improvements
Outlook
NZ
Low growth
Australia
Flat
North America
Low growth
Asia
Growth
Europe
Low growth
* Excludes Roof Tile Group

DistributionResult detail
Fletcher Building Half Year Results Presentation | © February 2018
23
NZ$m
Dec 2016
6 months
Dec 2017
6 months
change
Gross revenue
1,644
1,757
7%
External revenue
1,559
1,665
7%
EBITDA
96
104
8%
EBIT
84
89
6%
NZ Building Supplies
47
49
4%
NZ Steel Distribution
25
23
(8)%
AU Building Supplies
2
4
100%
AU Steel Distribution
10
13
30%
Trading Cashflow
1
62
87
40%
Funds Employed
1,039
983
(5)%
EBITDA/gross revenue %
660%
EBIT/gross revenue %
550%
ROFE %
16
18
2%
New Zealand Building Supplies•
Gross revenue and operating earnings both +4%
•
Growth in all regions except Christchurch
•
Placemakers improving penetration of key new markets
•
Mico growing ahead of market – new store openings
New Zealand Steel Distribution•
Gross revenue +12%
•
Good momentum in roofing, share gains in Easysteel
•
Acquisition of Calder Stewart Roofing in April 2017
Australia Building Supplies•
Tradelink revenue +6% in local currency, above market growth, 17 new stores planned for FY18
Australia Steel Distribution•
Strong performance reflects benefit of Stramit’s customer value proposition
1. Trading Cashflow is Operating Cashfl
ow before net interest and cash tax

DistributionMarket Outlook
Fletcher Building Half Year Results Presentation | © February 2018
24
Resi
Com
Infra
Other
Total
NZ Distn
58%
25%
3%
14%
100%
Australia Distn
53%
37%
0%
10%
100%
Resi
Com
Infra
NZ Distn
Low
growth
Flat
Growth
Australia Distn
Flat
Flat
Low
growth
Divisional ExposureMarket Outlook 12 months
Outlook Comments•
Continued growth in NZ based revenues given maintained levels of activity in residential and commercial building sectors
•
Modest growth in NZ distribution earnings due to improvement in Placemakers and Mico
•
In Australia earnings of Tasman Sinkwareand Tradelink are expected to improve compared to FY17.

Fletcher Building Half Year Results Presentation | © February 2018
25
Residential and Land DevelopmentResult detail
NZ$m
Dec 2016
6 months
Dec 2017
6 months
change
Gross revenue
163
236
45%
External revenue
163
236
45%
EBITDA
30
47
57%
EBIT
30
47
57%
NZ Residential
25
30
20%
Land Development
517NM
Trading Cashflow
1
(93)
51
NM
Funds Employed
477
562
18%
EBITDA/gross revenue %
18
20
2%
EBIT/gross revenue %
18
20
2%
ROFE %
13
17
4%
NZ Residential•
Housing sales (incl. sections) totalled 342 in H1 18, up from 188 in H1 17.
•
Residential earnings were impacted by an $12m provision for a forecast loss on the Atlas Quarter apartment project in Christchurch
•
Excluding this loss, residential earnings were up 68% half-on-half
Land Development•
Increased earnings due to sale of two development locations in Australia and one in NZ
•
Still on track to deli
ver $25m of EBIT per
annum over next 5 years
1. Trading Cashflow is Operating Cashfl
ow before net interest and cash tax

171
8586
0
50
100
150
200
250
300
350
400
HY 10
HY 11
HY 12
HY 13
HY
14
HY 15
HY 16
HY 17
HY 18
Low/Medium Density
High Density
Sections
Build Margin
30%
Development
Margin
57%
Land Appreciation
13%
Fletcher Building Half Year Results Presentation | © February 2018
26
New Zealand ResidentialPerformance and trends
Contributions to average HY2018 Fletcher Living margins
Residential units sold
Distribution of sales prices for HY18 residential sales
8%
6%
40%
27%
18%
$250k-
$500k
$500k-
$750k
$750k-
$1,000k
$1,000k-
$1,250k
$1,250k+
Sales price per unit ($NZ)
Sales of Auckland houses in $800k - $1m price band
-
200
400600
800
1,000
1,200
1,4001,600
1,800
Apr-08
Jan-09
Oct-09
Jul-10
Apr-11
Jan-12
Oct-12
Jul-13
Apr-14
Jan-15
Oct-15
Jul-16
Apr-17
Jan-18
Source: REINZ

Residential and Land DevelopmentMarket Outlook
Fletcher Building Half Year Results Presentation | © February 2018
27
Low density
High density
Auckland
50%
15%
Christchurch
25%
10%
Low density
High density
Auckland
Low growth
Flat
Christchurch
Flat
Flat
Divisional Exposure of Revenue
Demand Outlook 12 months
Outlook Comments•
Auckland housing market has seen softer pricing year to date wi
th still some risk to
prices for remainder of year
•
Residential earnings for FY18 are expected to be similar to the prior year
•
Strength in Auckland standalone housing margins will contrast weaker margins of section sales and Christchurch volumes
•
Land Development earnings are expected to be lower than in FY17 due to fewer projects coming to market in H2 and risk around regulatory approvals for planned sales

ConstructionRecap of February 14 trading update
Fletcher
 
Building
 
Half
 
Year
 
Results
 
Presentation
 
|
 
©
 
February
 
2018
28
Summary of comments
•
Projected B+I FY18 EBIT loss of $660m
•
Refocus B+I on delivery of remaining projects
•
Cease bidding for all new vertical construction work in NZ
•
All current B+I projects targeted to be delivered by end of 2019

Fletcher Building Half Year Results Presentation | © February 2018
29
ConstructionResult detail
NZ$m
Dec 2016
6 months
Dec 2017
6 months
change
Gross Revenue
1,150
1,001
(13)%
External Revenue
1,035
954
(8)%
EBITDA
35
(608)
NM
EBIT
24
(619)
NM
Infrastructure & Higgins NZ
47
11
(77)%
B+I
(47)
(631)
NM
Construction South Pacific
23
10
(57)%
Trading Cashflow
1
(74)
(115)
(55)%
Funds Employed
366
(330)
NM
EBITDA/gross revenue %
3(61) NM
EBIT/gross revenue %
2(62) NM
Infrastructure & Higgins NZ•
Infrastructure continued strong activity levels but profit reduced due to timing of two key projects
•
Higgins and Infrastructure benefited from Kaikoura earthquake rebuild
B+I•
Operating loss of $631m compared to $47m in HY17
•
Reflects provisioning taken in October and December 17
South Pacific•
Operating earnings of $10m compared to $23m in HY17 due to timing of work completed
1. Trading Cashflow is Operating Cashfl
ow before net interest and cash tax

Fletcher Building Half Year Results Presentation | © February 2018
30
ConstructionBacklog
0
500
1,000
1,500
2,000
2,500
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Work Backlog $m
B+I Backlog
0
500
1,000
1,500
2,000
2,500
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Work Backlog $m
Higgins and Infrastructure Backlog
Infrastructure
Higgins
•
Backlog reducing as work is completed and not replaced by any significant new projects won
•
Higgins benefited from additional work won on Kaikoura rebuild, plus new work in Waikato and Manawatu
•
Infrastructure backlog dominated by Hamilton Expressway, Puhoi to Warkworth and Peka Peka to Otaki