Fletcher Building Limited – 2019 Half Year Results

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Fletcher Building announces return to profitability, dividend declared

Auckland, 20 February 2019: Fletcher Building today announced net earnings of $89 million
for the six months ended 31 December 2018, compared with a loss of $273 million for the
first half of FY18.

EBIT before significant items was $285 million compared with a loss of $322 million in the
prior period. Half year earnings were 8% lower when compared with EBIT before significant
items (adjusted for B+I provisions) of $309 million for the first half of FY18. This is within the
guidance given at the Annual Shareholders Meeting (ASM) in November 2018.

As a result of the return to profitability the Fletcher Building Board is pleased to declare an
interim dividend of 8.0 cents per share to be paid on 10 April 2019. Given the expected
settlement timing of the Formica sale, the FY19 dividend will be weighted towards the final
dividend. No New Zealand imputation credits or Australian franking credits will be attached
to the interim dividend. The dividend reinvestment plan will not be operative for this dividend.

Fletcher Building CEO Ross Taylor said: “We are pleased to deliver a result in line with the
earnings guidance provided at the ASM, and to be able to reinstate dividend payments.

“In the first half we have made good progress on our strategy to refocus Fletcher Building
on its core in New Zealand and Australia. In particular, we have completed the divestment
of Roof Tile Group and signed an agreement to sell Formica for US$840 million, which we
expect to complete by the end of the financial year.

“Our operating results across our core New Zealand businesses have been solid in the first
half, and we are on track to close-out the B+I projects within the current provisions. In
Australia we have been impacted by the sharp decline in the residential market as well as
higher input costs. We are focused on setting the Australian business up for improved
performance from FY20, which will include a reset of the cost base.”

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Group EBIT (excluding significant items and assuming a full year of Formica earnings) for
FY19 is expected to be in the range of $650 million to $700 million. This compares to the
earnings guidance of $630 million to $680 million provided at the ASM. The $20 million
increase in earnings guidance is due to the treatment of the Formica business as ‘held for
sale’ and hence the assets are not subject to depreciation in the second half of FY19.

#Ends
For further information please contact:
MEDIA
Marie Winfield
Head of Communications
+64 27 488 9888
marie.winfield@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
aleida.white@fbu.com

Dial in details for media and investor calls are as follows:
Australia Toll Free: 1 800 558 698 Hong Kong: 800 966 806
Australia Local: +61 2 9007 3187 Japan: 0053 116 1281
New Zealand Toll Free: 0800 453 055 Singapore: 800 101 2785
NZ Local (Auckland): +64 9 929 1687 UAE: 8000 3570 2705
NZ Local (Wellington): +64 4 974 7738 United Kingdom: 0800 051 8245
NZ Local (Christchurch): +64 3 974 2632 United States: (855) 881 1339
Media Teleconference
CEO Ross Taylor and CFO Bevan McKenzie will host a teleconference for media at 10.00am
NZT today (8.00am AEST) to provide more detail on this announcement. The passcode to join
the teleconference is Passcode: 277276

Investor Call
CEO Ross Taylor and CFO Bevan McKenzie will host a teleconference and webcast for
investors at 11.00am NZT today (9.00am AEST) to provide more detail on this announcement.
The passcode and link to the webcast to join the teleconference and webcast is:
Webcast:
https://edge.media-server.com/m6/p/th68bwxt
Passcode: 231101
A replay is available using the following details:
Replay Pin: 7532#
New Zealand: 0800 886 078
Australia: 1800 265 784
Other countries: +61 7 3107 6325

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Fletcher Building Limited
Interim Report 2019

Chairman’s Report02
CEO’s Report04
Group Performance06
Building Products15
Distribution16
Steel17
Concrete18
Residential and Development20
Construction22
Australia24
Formica and Roof Tile Group26
Financial statements28
Notes to the financial statements34
Interim Dividend55
Corporate Directory56
Contents
When used in this interim report, 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 interim report.
An electronic copy of this interim report
is available to view on our website
www.fletcherbuilding.com
Waikato Expressway – Hamilton’s City Edge

Dear Shareholders
The focus for FY19 is to stabilise and reset
the business for the future and I am pleased
to report that in the first half of FY19 good
progress has been made toward this goal.
Overall, the strategy is designed to deliver
long-term growth for shareholders through
focusing Fletcher Building’s operations in the
New Zealand and Australian markets, with
building products and distribution at its core.
This focus led to the decision to sell Fletcher
Building’s non-core international businesses,
Roof Tile Group (RTG) and Formica. Pleasingly
these key steps are almost complete with the
RTG divestment finalised during the period
and an agreement to sell Formica signed.
Within the Construction division, work is on
track to complete the remaining B+I projects
within the provisions announced in February
last year. A key part of the Company’s strategy
is to turnaround the Australia division and we
are focused on resetting these businesses in
light of challenging market conditions to set
up for improved performance in FY20.
Interim financial results and dividend
The Company’s interim results show a welcome
return to profitability with operating earnings
before significant items, or EBIT, of $285 million,
compared to a loss of $322 million in the first
half of FY18. Adjusting for the impact of the B+I
provisions, current year earnings decreased by
8% when compared to $309 million in the prior
period. This was ahead of the earnings guidance
of a 10% decrease that we communicated at
our Annual Shareholders’ Meeting in November.
The return to profitability has facilitated the
reinstatement of dividend payments, and the
Board is pleased to declare an interim dividend
of 8.0 cents per share to be paid on 10 April 2019.
The Board’s decision to reinstate the dividend
is based on our confidence that the strategy
will achieve its objectives but at the same
time we have taken into account the
Company’s ongoing capital requirements
and the expected settlement timing of the
Formica sale. Accordingly, the FY19 dividend
will be weighted towards the final dividend
to be announced in August 2019.
Governance and board composition
To support the new strategy, we have sought
to achieve a Board composition that has the
appropriate mix of skills, experience and
diversity and this has led to five new directors
being appointed. The new directors bring
a range of commercial, operational and
governance expertise and are well connected
across business and government, important
for a business the size and complexity of
Fletcher Building.
All of the directors have been actively out
in the business, and ensuring they spend
time with management and the different
divisions on a regular basis.
Chairman‘s Report
In addition, the Board has had an ongoing focus
on governance across all elements of business
operations. This has led to improvements in
governance, new Board committee chairs
have been put in place and the committees
are working effectively.
Health and safety
Unfortunately we have had two fatalities across
the Fletcher Building Group recently and on
behalf of the Fletcher Building Board, I wish
to express my deepest condolences to
the families of the two men who passed away.
These occurred against a backdrop of intense
Board and management focus on health and
safety and an improving safety performance
across the group as a whole. As such this has
been very disappointing for all of us and will
reinforce our focus and efforts to ensure
everyone who works with us at Fletcher
Building gets home from work safely each day.
Conclusion
The first half of the financial year and the return
to profitability reflects solid progress against
the new Company strategy. The Board and I are
confident Ross and his team remain on track to
deliver against the key elements of the strategy
we laid out last year.
On behalf of the Board, I look forward to the
second half of the year as we set the business
up for positive performance in FY20.
Bruce Hassall
Chairman
The performance of Fletcher Building in FY18
triggered a period of significant change for the
Company. Under CEO Ross Taylor’s leadership,
Fletcher Building initiated a comprehensive
strategy refresh that is being implemented over
five years, and Board and governance changes
have been undertaken to support that process.
Bruce Hassall CHAIRMAN
02 Fletcher Building Limited Interim Report 2019 03 Fletcher Building Limited Interim Report 2019

In Australia, a sharp downturn in the residential
market as well as sustained high input costs
have impacted the division’s performance. We
are undertaking a reset of the division through
FY19 to adjust to prevailing market conditions
and ensure a good base for stronger trading
performance in FY20.
The sale of Roof Tile Group (RTG) was completed
during the period, and it was pleasing to have
reached an agreement in December 2018 to
sell Formica for US$840 million. The sale is
expected to be completed by the end of the
financial year, driven by regulatory approvals.
These are tracking to plan, with six of nine
received so far.
Health and safety
Tragically two fatalities have occurred in our
operations since November, one an electrical
contractor and the other a member of our staff.
Through this very hard period our sympathies
and support have been provided to their
colleagues, friends and families.
These fatalities were especially disappointing for
us as they occurred against strongly improving
safety performance across the Group as a whole.
We have ensured that we understand the causes
and have learnt from what happened, and
reinforced to everyone who works with us at
Fletcher Building our focused efforts to ensure
everyone returns home safely each day.
HY19 Performance
Group revenue declined 3% to $4.8 billion
during the six months to 31 December 2018.
This was anticipated and resulted from reducing
Construction revenue as we progressively
complete the remaining B+I projects.
Group operating earnings before significant
items (EBIT) were $285 million, compared to
a loss of $322 million in the first half of FY18.
Adjusting for the impact of B+I, EBIT was 8%
lower for HY19.
The Group recorded significant items of $68
million in the period. These items related mainly
to the recognition of a loss on sale of RTG of
$18 million and the recognition of an impairment
charge to goodwill of $37 million based on the
expected Formica sale proceeds. As a result,
net earnings were $89 million, compared with
a loss of $273 million in the comparable period.
In New Zealand, the Distribution, Steel, and
Building Products divisions held revenue in line
with the prior year. In Steel and Building Products,
earnings came under pressure largely due to
continued increases in input costs, primarily steel,
energy, resins and transport. In the Concrete
division, a breakdown in a cement mill at Golden
Bay Cement’s Portland facility in September
led to a net $6.7 million impact to EBIT. When
adjusting for the impact of the outage, EBIT
was 6% higher than the prior half year.
Our Residential division reported a strong
revenue increase of 6%, as house sale volumes
remained high. A change in accounting policy
during the period led to lower earnings for the
period, however, on a comparable basis,
earnings grew by 1%. Earnings from the Land
Development business were lower during the
period as land sales reset closer to the long term
average of $25 million per year.
In Construction, gross revenue of $866 million
decreased from the prior period as the
CEO’s Report
remaining B+I projects are completed, which
was also reflected in a reduction in the
division’s backlog to $1.6 billion ($2.3 billion
at 31 December 2017). Higgins continued to
perform well, and, while the balance of the
Construction businesses improved half on half,
their profitability was pulled back by lower bid
win rates. This was a direct result of getting our
teams used to working within our tightened bid
disciplines and risk regimes. Our expectation is
that win rates will start to improve into the future,
as we are now mostly through this reset.
While revenue held up in the Australia division
over the comparable period, the downturn in
the residential market and continued high input
costs resulted in operating earnings of $33 million,
down 38% on the prior period. Through the
coming months we will materially reset this
business to ensure its footprint, cost base and
strategies are set up for this new market reality.
It is important we move now to properly position
our Australian businesses to grow into FY20
and beyond.
Group EBIT (excluding significant items and
assuming a full year of Formica earnings) in FY19
is expected to be in the range of $650 million
to $700 million. This compares to earnings
guidance provided at the Annual Shareholders’
Meeting of $630 million to $680 million. The
$20 million increase in earnings guidance is due
to the treatment of the Formica business as ‘held
for sale’ and hence the assets are not subject to
depreciation in the second half of FY19.
Conclusion
I am pleased to be able to deliver a profit for
Fletcher Building this half, which has allowed a
return to dividend payments, and I am confident
that we are on track to deliver against the
Company’s strategy as we focus on growing
our core New Zealand and Australian businesses.
Ross Taylor
CEO
I am pleased with the progress we have made
against Fletcher Building’s five-year strategy
during the first half of FY19 as we refocus and
stabilise the business.
In New Zealand, we are focused on growing
our core building products and distribution
businesses (Building Products, Distribution, Steel,
and Concrete). Despite the market environment
for each of these divisions continuing to be
highly competitive, we were able to maintain
our strong revenue position. The Construction
division returned to profitability, displaying good
progress on its turnaround and we continue to
remain within the provisions set for B+I project
completions in February 2018.
Ross Taylor CEO
04 Fletcher Building Limited Interim Report 2019 05 Fletcher Building Limited Interim Report 2019

Six months ended 31 December2018
NZ$m
2017
NZ$m
Change
%
Total revenue 4,754 4,889 (3%)
Operating earnings before significant items
1
285 (322)NM
Significant items
1
(68)0NM
Operating earnings (EBIT)217(322)NM
Funding costs(62)(63)(2%)
Earnings/(loss) before tax155(385)NM
Tax benefit/(expense)(61)117NM
Earnings/(loss) after tax94(268)NM
Non-controlling interests(5)(5)0%
Net earnings/(loss)89(273)NM
Net earnings/(loss) before significant items160(273)NM
Basic earnings per share (cents)10.4(39.2)NM
Dividends declared per share (cents)8.0 0.0 NM
Cash flows from operating activities(114) 110 NM
Capital expenditure 139 131 6%
Operating earnings before significant items
1
285 (322)NM
B+I0(631)(100%)
Operating earnings (excluding B+I) before significant items
1
285309(8%)
Basic earnings per share (excluding B+I) before
significant items18.826.0(28%)
 Revenue
Six months ended 31 December 2018
NZ$m
2017
NZ$m
Change
%
Building Products389405(4%)
Distribution8097972%
Steel2832676%
Concrete404427(5%)
Residential and Development2512366%
Construction8661,001(13%)
Australia1,5571,5471%
Formica and Roof Tile Group5815584%
Divested businesses
2
51(100%)
Other6520%
Gross revenue5,146 5,294(3%)
Less: intercompany sales(392)(405)(3%)
Group external revenue4,754 4,889(3%)
Group Performance
 
Reported
operating earnings
Operating earnings before
significant items and B+I
1
Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
%
2018
NZ$m
2017
NZ$m
Change
%
Building Products66 73(10%)66 73(10%)
Distribution50 492%50 492%
Steel21 23(9%)21 23(9%)
Concrete42 46(9%)42 46(9%)
Residential and Development43 47(9%)43 47(9%)
Construction15 (619)NM15 1225%
Australia33 53(38%)33 53(38%)
Corporate(22)(26)(15%)(22)(26)15%
Continuing operations248 (354)NM248 277 (10%)
Formica and Roof Tile Group(31)26NM37 2642%
Divested businesses
2
6(100%) 6(100%)
Total217 (322)NM285 309 (8%)
Funding costs(62)(63)2%(62)(63)2%
Earnings/(loss) before tax155 (385)NM223 246(9%)
Tax (expense)/benefit(61)117NM(58)(60)(3%)
Earnings/(loss) after tax94 (268)NM165 186(11%)
Non-controlling interests(5)(5)0%(5)(5)0%
Net earnings/(loss)89 (273)NM160 181(12%)
1 Operating earnings before significant items and B+I 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 2018. Details of significant items can be found in note 4 of the interim financial statements.
2 Divested businesses include the Group’s previous interests in Sims Pacific Metals and Dongwha New Zealand Limited.
* EBIT before significant items.
+
EBIT (excluding B+I) before significant items.
Building Products
EBIT 2018
$66m
2017

$73m ▼ 10%
Residential and
Development
EBIT 2018
$43m
2017

$47m ▼ 9%
Steel
EBIT 2018
$21m
2017

$23m ▼ 9%
Australia
EBIT 2018
$33m
2017

$53m ▼ 38%
Distribution
EBIT 2018
$50m
2017

$49m ▲ 2%
Construction
EBIT 2018
$15m
2017
+

$12m ▲ 25%
Concrete
EBIT 2018
$42m
2017

$46m ▼ 9%
Formica and
Roof Tile Group
EBIT* 2018
$37m
2017

$26m ▲ 42%
06 Fletcher Building Limited Interim Report 2019 07 Fletcher Building Limited Interim Report 2019

External revenue of $4,754 million was $135 million or 3% lower than the prior
corresponding period. Operating earnings before significant items were
$285 million, compared to a loss of $322 million in the prior corresponding
period which was impacted by B+I provisioning. Net earnings were $89 million
compared to a loss of $273 million in the prior corresponding period.
In New Zealand, gross revenue (excluding B+I) grew 1% while operating earnings (excluding B+I)
declined 5% compared to the prior corresponding period. Market activity levels were generally
steady compared to the prior period, with the commercial sector remaining highly competitive
and the residential sector showing variations in activity by region (growth in Auckland offset by
contraction in regions including Waikato, Bay of Plenty, and Canterbury).
• The distribution and materials divisions (Building Products, Distribution, Steel, and Concrete)
recorded revenue in line with the prior period, while operating earnings declined by 6% or
$12 million. Approximately half of this earnings decline ($6.7 million) resulted from a breakdown
of a cement mill at Golden Bay Cement’s Portland facility. Additionally, margin compression in
some Building Products and Steel businesses was caused by rising input costs (e.g. energy, steel)
which could not be fully recovered in price due to specific competitive dynamics. Margins in the
Distribution and Concrete divisions were flat or slightly higher than the prior period.
• The Residential business grew both house sale volumes and revenue compared to the prior period,
despite sale volumes being restricted in some locations by a build program weighted more to the
second half of FY19. Margins remained stable for comparable housing typologies, however a
relatively high proportion of units were sold in Christchurch resulting in a lower overall margin mix.
Earnings from the Land Development business are lumpy in nature, and were $11 million lower than
the prior period.
• The Construction division recorded revenue 13% below the prior period as it continued to close-out
the B+I projects, which was also reflected in a reduction in the division’s backlog to $1.6 billion
($2.3 billion at 31 December 2017). There was no change to the B+I provisions booked in February
2018. Operating earnings for the division excluding B+I increased slightly, with Higgins continuing
to perform well in its third year of ownership by the Group, while Infrastructure, Brian Perry Civil,
and South Pacific in aggregate made a small loss in the period as new bidding disciplines limited
new work won and the current project workload was insufficient to fully recover overheads.
In Australia, gross revenue grew 1% while operating earnings declined by $20 million or 38% compared
to the prior period. Performance was impacted by a combination of: a sharp decline in the residential
market, which resulted in lower volumes and heightened competitive intensity in businesses exposed
to that sector (especially Laminex, Stramit and Tradelink); and gross margin compression in all
businesses, as increased input costs (e.g. resin, fuel, steel) could not be recovered in price in this
environment. Increased input costs were in part due to a depreciation of the Australian currency
($10 million earnings impact compared to the prior period). Revenue in the pipelines businesses
increased as the civil infrastructure market experienced continued growth, however input cost
pressure meant these gains did not flow through to earnings. Earnings pressure in Australia was
offset to a degree by overhead cost savings, with further work underway to ensure the division has
a sustainable future cost base.
In the Rest of World, Formica experienced good revenue and earnings growth, notably in
North America and Asia, with NZD earnings also supported by favourable foreign exchange rates.
The divestment of the Roof Tile Group was completed during the period, and an agreement signed
to divest the Formica Group, which is expected to be completed toward the end of FY19.
The significant items charge of $68 million for the period relates primarily to the divestment of the
Roof Tile Group and the Formica business. The Group recognised a total loss on sale of the Roof Tile
Group of $18 million, and incurred costs related to the divestment process of Formica of $13 million.
Given the advanced stage of the Formica process, the Formica group has been recognised as ‘held
for sale’ in the interim financial statements and was required to undergo an impairment test. Accordingly,
an impairment of $37 million of goodwill has been recognised based on expected sale proceeds.
Funding costs remained elevated at $62 million, with additional interest charges arising from the
debt covenant breach expected to cease in March 2019.
The tax expense of $61 million compared to a tax benefit of $117 million in the prior corresponding
period. The prior result reflects the impact of the B+I loss provisions recognised during the period.
Earnings per share were 10.4 cents compared with (39.2) cents per share in the prior corresponding
period. Adjusted for the impact of B+I and significant items, earnings per share were 18.8 cents
compared with 26.0 cents per share in the prior corresponding period.
Iplex Pipelines
08
Fletcher Building Limited Interim Report 2019 09 Fletcher Building Limited Interim Report 2019

Group Cash Flow
 As reported Excluding B+I
Six months ended 31 December2018
NZ$m
2017
NZ$mChange
2018
NZ$m
2017
NZ$mChange
Operating earnings before
significant items
1
285 (322)607 285 309 (24)
Depreciation and amortisation113 110 3 113 110 3
Provisions, significant items and other(59)(17)(42)(57)(17)(40)
Trading cash flow before working
capital movements339 (229)568 341 402 (61)
Residential and Development(29)9 (38)(29)9 (38)
Construction(124)491(615)(21)(7)(14)
Debtors
2
85 93(8)8593(8)
Inventories
2
(96)(61)(35)(96)(61)(35)
Creditors
2
(211)(101)(110)(211)(101)(110)
Working capital movements(375)431 (806)(272)(67)(205)
Trading cash flow(36)202 (238)69 335 (266)
Less: cash tax paid(17)(30)13 (17)(30)13
Less: interest paid(61)(62)1 (61)(62)1
Cash flows from operating activities(114)110 (224)(9)243 (252)
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 2018. Details of significant items can be found in note 4 of the interim financial statements.
2 These working capital movements exclude the Residential and Development and Construction divisions as these are
disclosed separately.
Cash flows from operating activities of $(114) million were $224 million lower than the prior year.
The ongoing cost of completing the B+I projects resulted in a cash outflow of $105 million compared
to an outflow of $133 million in the prior period.
Excluding B+I, cash flows from operating activities of $(9) million were $252 million lower than the prior
year. The reduced cash flows are primarily explained by the following working capital movements:
• Residential and Development – working capital outflows of $29 million compared to an inflow of
$9 million in the prior corresponding period. This movement was primarily due to a higher number
of Land Development transactions in the prior period, which resulted in a significant release of
both land stocks and receivables, and accounted for a $(59) million adverse movement in working
capital between the two periods. Working capital movements in the Residential business were
favourable compared to the prior period, with increased investment in land and housing
inventories more than offset by increased collections of Residential debtors;
• Inventories – increased inventory holdings, mainly in the Steel division (reflecting increased
imported supply) and the Australia division (reflecting project inventory build), resulted in an
overall outflow of $96 million compared to $61 million in the prior period;
• Creditors – creditor outflows of $211 million compared to an outflow of $101 million in the prior
period. Increased outflows were due to the timing of major supplier purchases and hence timing
of payments across the period, including the impact of sourcing strategies in the Steel and
Australia divisions. Creditor movements are expected to normalise in the second half.
Capital expenditure was $139 million, compared with $131 million in the prior year. Of this total,
$103 million was for stay-in-business capital projects and $36 million related to new growth initiatives.
Funding
Total available funding as at 31 December 2018 was $2,547 million. Of this, $832 million was
undrawn and there was an additional $320 million of cash on hand.
The Group’s gearing
1
at 31 December 2018 was 26.2% compared with 23.5% at 30 June 2018.
The Group’s leverage ratio
2
(net debt / EBITDA) at 31 December 2018 was 1.7 times compared with
4.8 times at 30 June 2018. Leverage at 31 December 2018 excluding B+I was 1.6 times compared
with 1.4 times at 30 June 2018.
The average maturity of the Group’s debt at 31 December 2018 is 4 years and the hedged currency
split is 38% Australian dollar; 39% New Zealand dollar; 13% US dollar; and 10% spread over various
other currencies.
Approximately 61% of all borrowings have fixed interest rates with an average duration of 2.6 years
and a rate (based on period end borrowings) of 7.2%. Inclusive of floating rate borrowings, the
average interest rate on the debt (based on period end borrowings) is 6.3%. Interest rates include
the additional interest charges arising from the debt covenant breach that are expected to cease
in March 2019.
1 Interest bearing net debt (including capital notes) to interest bearing net debt (including capital notes) and equity
2 Interest bearing net debt (including capital notes) to EBITDA before significant items
10
Fletcher Building Limited Interim Report 2019 11 Fletcher Building Limited Interim Report 2019

Outlook
Market Activity
New Zealand – activity in the residential sector in the second half of FY19 is expected to be broadly
flat compared to the prior period, driven by a continued elevated level of new residential consents,
offset slightly by a lower average floor area of new dwellings. Activity levels in the commercial and
infrastructure sectors are also expected to remain broadly stable, though with regional and timing
variations due to the impact of large roading and commercial projects.
Australia – residential and commercial activity is expected to decline sharply, including in the
key standalone dwellings segment. Infrastructure activity on the Eastern Seaboard is expected
to remain robust.
Business Performance
Group EBIT (excluding significant items and assuming a full year of Formica earnings) in FY19 is
expected to be in the range of $650 million to $700 million. This compares to earnings guidance
provided at the Annual Shareholders’ Meeting for FY19 Group EBIT (excluding significant items) of
$630 million to $680 million. The $20 million increase in earnings guidance is due to the treatment
of the Formica business as ‘held for sale’ and hence the assets are not subject to depreciation in the
second half of FY19.
The following outlook comments can be made by business area:
• New Zealand materials and distribution businesses (Building Products, Distribution, Steel and
Concrete): revenue is expected to continue to grow at or slightly ahead of the broader market,
with a focus on maintaining strong market share positions. Margin performance will depend
principally on our ability to realise price gains to offset increased input costs in a competitive
market environment, notwithstanding our ongoing focus on achieving operating and overhead
cost efficiencies.
• Residential and Land Development: demand in the key market segment of Auckland houses
priced between $600,000 and $900,000 is expected to remain robust, though with prices
and margins broadly flat. This is expected to enable Fletcher Living to achieve an increase in the
number of houses built and sold from the levels reported in FY18 with a commensurate increase
in revenues, however, overall divisional margins will be diluted by a relatively higher level of sales
in the Christchurch region. Investment in residential land plus work in progress will be made to
support the forward pipeline, and will result in an increase in total divisional funds to approximately
$750 million. Land Development earnings are lumpy in nature, and are dependent on completing
the next phase of the Wiri development in the second half of FY19.
• Construction: the business will continue to focus on completing the B+I projects within current
provisions. Outside B+I, earnings are expected to decline slightly in FY19 as the division adjusts
its sales teams and project focus to more stringent bidding discipline. However, a continued
strong contribution is expected from Higgins despite the roll-off of some major contracts in
Fiji and New Zealand.
• Australia: earnings are expected to decline on the prior year, as revenues and margins come
under pressure from a sharp downturn in the highly competitive residential and commercial
markets. Margin performance will depend principally on the ability to realise price gains to offset
higher input costs in the competitive environment, though with additional focus on achieving
operating and overhead cost efficiencies for the new market reality.
Dividend
The 2019 interim dividend is 8.0 cents per share. In line with the Group’s tax crediting policy
announced in August 2016, the interim dividend will be unimputed for New Zealand tax purposes
and unfranked for Australian tax purposes. Accordingly, a supplementary dividend will not be
payable to non-New Zealand shareholders.
The dividend will be paid on Wednesday 10 April 2019 to holders registered as at 5.00 pm (NZ time) on
Friday 22 March 2019. The shares will be quoted on an ex-dividend basis from Thursday 21 March 2019
on the NZX and ASX.
The Dividend Reinvestment Plan will not be operative for this dividend payment.
Financial highlights (unaudited)
Six months
Dec 2018
Six months
Dec 2017
Year ended
June 2018
Return on average funds (%)
(1)
7.9(6.1)(2.2)
Return on average equity (%)
(2)
4.4(9.8)(5.2)
Return on average funds – before significant items (%)
(1)
12.3(1.9)0.9
Return on average equity – before significant items (%)
(2)
9.6(3.8)(1.7)
Earnings per share (cents) 10.4(39.2)(25.5)
Net tangible assets per share ($)2.952.202.85
Dividends per share (cents)8.0 0.00.0
Gearing (%)
(3)
26.239.123.5
(1) Rolling 12 month EBIT to average funds (net debt and equity less deferred tax assets).
(2) Rolling 12 month net earnings attributable to shareholders to average shareholders’ funds.
(3) Net debt (borrowings less cash and deposits) to net debt and equity.
12
Fletcher Building Limited Interim Report 2019 13 Fletcher Building Limited Interim Report 2019

Building Products

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue389 405 (16)(4%)
External revenue304 324 (20)(6%)
Operating earnings66 73 (7)(10%)
Funds512 495 17 3%
Trading cash flow58 73 (15)(21%)
The Building Products division
reported gross revenue of $389
million compared with $405 million
in the prior corresponding period.
The division’s operating earnings were
$66 million, compared with $73 million
in the prior corresponding period,
a reduction of 10% or $7 million.
Revenue in the majority of Building Products
businesses was in line with or higher than the
prior period. Winstone Wallboards revenue was
3% higher, with record sales in performance
boards, while Iplex NZ saw strong momentum
in their plumbing and electrical segments.
Overall divisional revenue was lower principally
due to a one-off project at Humes in the prior
year. Regionally, continued growth in Auckland
was offset by subdued performance in Waikato
and Bay of Plenty following strong growth in
recent years.
The contraction in divisional earnings was
primarily due to higher input costs for raw
materials across a number of businesses which
were not able to be fully recovered through sales
price increases. These input cost pressures
included a temporary spike in electricity prices
in the period and higher cost of imported inputs
such as gypsum and resin. In the plasterboard
sector, competition remained strong which
limited price gains, however Winstone
Wallboards was able to maintain market share
through the period. Laminex was impacted by
adverse product mix, where strong revenue
growth in decorative panels was offset by a
decline in demand for horizontal surfaces.
All business units continued their focus on
manufacturing performance during the period,
with record manufacturing efficiencies for
both Iplex NZ and Tasman Insulation partially
offsetting input cost pressures. The division
continues to invest in innovation, including the
release of Winstone Wallboards’ new exterior
sheathing solution.
Trading cash flows were an inflow of $58 million
compared to an inflow of $73 million in the
prior corresponding period, with the decline
due mainly to an adverse shift in creditors
and receivables balances compared to the
prior period.
Outlook (continued)
• Formica: completion of the Formica divestment is targeted by year-end, though is reliant on timing
of anti-trust approvals. EBIT will increase due to treatment of the assets as ‘held for sale’ and
therefore not subject to depreciation in the second half. Excluding this impact, Formica’s earnings
in FY19 are expected to increase compared to FY18, though with some pressure on input costs
in Europe and Asia due to tariffs and a strengthening of the US dollar versus local currencies.
The final loss on disposal for the business will be dependent on prevailing FX rates and working
capital adjustments on completion.
• Corporate: based on recent restructuring and a focus on removing centralised costs, the Group’s
corporate overhead costs in FY19 are likely to be at the lower end of the $45 million to $55 million
guidance range.
Funding: FY19 funding costs are expected to be in the range of $125 million to $135 million compared
to initial guidance of $145 million to $155 million, with the improvement due to interest expense and
hedge gains on debt repayments during the year. Additional interest charges arising from the debt
covenant breach in FY18 are expected to cease in March 2019.
Winstone Wallboards – GIB
Winstone Wallboards | Laminex New Zealand
Tasman Insulation | Humes | Iplex New Zealand
CSP Pacific | Altus
14
Fletcher Building Limited Interim Report 2019 15 Fletcher Building Limited Interim Report 2019
Divisions

Distribution

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue809 797 12 2%
External revenue786 777 9 1%
Operating earnings50 49 1 2%
Funds284 254 30 12%
Trading cash flow49 59 (10)(17%)
The Distribution division reported an
increase in gross revenue to $809
million, which was 2% higher than the
prior corresponding period. Operating
earnings of $50 million were also 2%
higher than $49 million in the prior
corresponding period.
Activity in the building supplies market has
remained elevated in the first half of FY19,
though appears to have plateaued overall after
several years of strong growth. PlaceMakers’
growth varied regionally in the current period,
with continued strength in the Auckland
market offset by softer conditions in the
residential market in Waikato, Bay of Plenty,
and Christchurch. Mico continues to generate
strong growth across all geographies, including
increased commercial project opportunities in
the Auckland region.
Operating earnings of $50 million for the
period reflected continued earnings growth
in PlaceMakers of 2%, while Mico earnings
grew strongly by 16% compared to the prior
corresponding period. Gross margins remained
steady in the division overall, notwithstanding
high levels of competition, especially in large
commercial projects.
PlaceMakers has completed the rollout of digital
mobility to all branches, which has enabled a
streamlined customer experience, and opened
a new branch in Rotorua in the period following
the purchase of a local player, establishing a
greater market presence in the Western Bay of
Plenty. Mico has entered new adjacencies with
the expansion of category offerings into
concrete pipes in a number of locations. Snappy
continues to gain presence within the DIY market
as the division’s eCommerce platform, adding
functionality and product offerings to drive
improved customer engagement.
Trading cash flows were an inflow of $49 million
compared to an inflow of $59 million in the prior
corresponding period, reflecting lower creditors
balances due to the timing of inventory purchases.
Steel
Following the consolidation of five sites into
two over the last 12 months, divisional overhead
costs have continued to trend downwards in
the period, offsetting inflationary pressures
to a degree. The Reinforcing business remains
focused on improving project profitability
and performance, which will be supported by
a new operating management system that
was deployed during the period. Easysteel have
continued to see success with customer wins,
principally in Auckland, which will deliver
continued momentum into the second half
of the financial year.
Trading cash flows were an outflow of $22 million
compared to an inflow of $25 million in the
prior corresponding period reflecting adverse
inventory and creditor movements. The division
increased its dual supply of raw materials during
the period, leading to a larger proportion of
imported product. Inventory balances have
increased as the business adjusts to longer
import lead times and reflect the increase in
input prices. Unfavourable creditor movements
reflect shorter supplier payment terms for dual
sourced product and high creditor balances
at 30 June 2018 arising from the timing of the
financial year end that were not replicated in
December. Reversing the impacts of dual
sourcing will depend on a lift in performance
from local sourcing options.

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue283 267 16 6%
External revenue216 204 12 6%
Operating earnings21 23 (2)(9%)
Funds236 187 4926%
Trading cash flow(22)25 (47)NM
The Steel division reported gross
revenue of $283 million, 6% higher
than the prior corresponding period.
Operating earnings of $21 million
decreased by 9% compared to the
prior corresponding period.
The growth in gross revenue reflected several
factors: market share gains in the North Island;
a slight recovery in Canterbury driven by
commercial sector activity; growth in roofing
volumes; and sales price increases (which
contributed 2% of the division’s 6% revenue
growth). Offsetting these gains were continued
subdued trading in the Reinforcing business, and
a high level of competition in some key product
categories, which limited the full realisation of
price increases implemented in the period.
Operating earnings were $21 million compared
to $23 million in the prior corresponding period.
The decrease of $2 million was primarily due to
increased input costs, particularly in painted coil,
that were unable to be fully passed on in sales
price in a competitive environment.
PlaceMakers | Mico |
Forman Building Systems | Snappy
Easysteel (including Dimond Structural
and Dimond Roofing) | Pacific Coilcoaters |
Fletcher Reinforcing
16
Fletcher Building Limited Interim Report 2019 17 Fletcher Building Limited Interim Report 2019
DivisionsDivisions

Concrete

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue404 427 (23)(5%)
External revenue275 287 (12)(4%)
Operating earnings42 46 (4)(9%)
Funds638 657 (19)(3%)
Trading cash flow49 41 8 20%
The Concrete division reported gross
revenue of $404 million compared
with $427 million in the prior
corresponding period. The 5%
decrease has resulted mainly from
reductions in ready mix and masonry
sales and a temporary loss of revenue
as a result of the breakdown of a
cement mill. The decrease was
partially offset by strong revenue
growth in the aggregates business.
Operating earnings were $42 million
compared to $46 million in the prior
corresponding period. In September 2018
the largest of the cement mills at the Portland
manufacturing facility suffered a breakdown
and was out of commission for four weeks.
The incident had a net EBIT impact of
$6.7 million in the period. When adjusted
for the impact of the cement mill breakdown,
divisional operating earnings were 6% ahead
of the prior period, attributable mainly to
the higher Aggregates sales and improved
gross margin performance in both Cement
and Aggregates.
Aggregates revenue increased by 8% on
the prior corresponding period driven by
both improved pricing and mix, and an
increase in volumes of 3%. The quarry
investment programme continues with a
focus on developing capability within the
existing quarry footprint to lift efficiency and
volume, positioning the business to take
advantage of regional growth opportunities.
The division has signed a conditional
agreement to purchase the operations of
Waikato Aggregates Limited, representing
the continued investment in future resource.
This quarry purchase obtained regulatory
approval in February 2019 and is expected
to generate operating earnings of $2 million
to $3 million in FY20.
Cement revenue decreased by 6% over the
prior corresponding period. Almost all of this
decline was driven by lost sales resulting from
the impact of the cement mill breakdown and
a drop in export volumes. Excluding the impact
of the mill breakdown, domestic revenue was
1% lower than the prior period.
Ready-mix revenue reduced by 2% on the prior
corresponding period, reflecting a timing
difference between the completion of large
infrastructure projects in the prior period and a
delay before work on new projects commences.
Reduced market activity in Christchurch and
the Bay of Plenty was offset by increases in
Auckland and Wellington. The division has
achieved good growth in sales prices during
the period with further increases scheduled
to come into effect from February 2019.
The new Auckland airport precinct ready-mix
plant is now completed further developing
Firth’s comprehensive network.
The improvement in the division’s operating
earning (excluding the mill breakdown) is
largely a result of the following factors:
• Improved efficiency in the cement
supply chain;
• Realisation of efficiencies from the recent
investment in masonry manufacturing; and
• Successful execution of turnaround plans
at a number of quarries and strong
performance from the broader portfolio.
The Tyre Derived Fuel project being undertaken
at the Portland cement plant in conjunction
with the Ministry for the Environment is now
in progress. Once it is completed in FY20,
it will deliver reduced energy costs and a
smaller carbon footprint, combined with
an environmentally sustainable means of
disposing of end of life tyres for New Zealand.
Winstone Aggregates
Winstone Aggregates | Golden Bay Cement
Firth Industries
18
Fletcher Building Limited Interim Report 2019 19 Fletcher Building Limited Interim Report 2019
Divisions

Residential and
Development
have extended in the last six months as some
buyers await the sale of their current house,
especially in higher price brackets. The division
continues to assess the house typologies
offered in each development as these market
dynamics change.
In Christchurch, a significant number of the Atlas
Quarter apartments were sold during the period
and there was an uplift in the number of
completed sales from the Awatea development.
There continues to be demand for single level
standalone houses in suburban Christchurch
and higher density dwellings nearer the CBD.
A significant milestone was achieved during
the period with the first sales of terraces and
apartments in the One Central precinct. Fletcher
Living continues to work closely with Ōtākaro
to determine the best typologies and to advance
the development of the remaining stages of
One Central.
Residential operating earnings were $37 million,
23% higher than the $30 million reported in the
prior corresponding period. The Group adopted
NZ IFRS 15 Revenue from Contracts with
The Residential and Development
division reported $251 million of
gross revenue for the period ended
31 December 2018, an increase of 6%
compared to the prior corresponding
period. Operating earnings of $43
million were 9% lower than $47 million
in the prior corresponding period.
The Residential business continued to grow
house sales volumes, which reached 354 units
during the period compared to 346 in the prior
corresponding period. When section sales are
excluded, 346 dwellings were sold in the current
period compared to 256 in the prior period,
despite sales volumes being restricted in
some locations by a house build program that
is weighted more to the second half of FY19.
Demand for housing in Auckland priced between
$600,000 and $900,000 remains strong and
supported sales in the majority of the Auckland
development sites, especially Swanson, Waiata
Shores and Totara Heights. Settlement times

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue251 236 15 6%
External revenue251 236 15 6%
Operating earnings43 47 (4)(9%)
Funds661 562 99 18%
Trading cash flow(7) 58(65)NM
Operating earnings
Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
%
Residential37 30 23%
Land Development6 17 (65%)
Total43 47 (9%)
Land Development operating earnings in the
period were $6 million, compared to $17 million
in the prior corresponding period. The earnings
were mainly attributed to the sale of a Rocla site
in Canberra, and one Tradelink site in Victoria,
Australia. The business continues to target
operating earnings of at least $25 million from
Land Development activities in the current
financial year.
Funds employed increased to $661 million from
$604 million at 30 June 2018. This included
$99 million of lot purchases and $52 million of
costs to develop residential land. The current
funds balance includes 2,878 residential lots
for further development or for sale. In addition,
the business holds a further 908 units under
unconditional agreements, to be delivered
over the next five years.
Trading cash flows were an outflow of $7 million
compared to an inflow of $58 million in the prior
corresponding period. This reflected increased
investment in work in progress on a greater
number of houses than last year, increased
purchases of land, and the prior period
included $70 million of proceeds from the
Land Development business.
Customers from 1 July 2018, which affected
the recognition of revenue from the sale of
houses and therefore impacts the comparison
of results for the prior period. On a comparable
basis (applying current accounting policies to
the prior corresponding period), Residential
operating earnings for the current period of
$37 million were 3% higher than the $36 million
in the prior corresponding period. In addition,
a $12 million provision relating to the Atlas
Quarter apartment project suppressed the
prior corresponding period’s earnings.
Residential gross margin reduced compared
to the prior corresponding period, reflecting
a different mix of sales volumes by houses,
apartments, sections, and development.
In particular, it reflected a greater proportion
of units sold in the lower margin Christchurch
market, including those at Atlas Quarter, partially
offset by a greater relative contribution to
margins from house sales compared to the
prior period. Apartment sales in Atlas Quarter
were made in line with the forecast loss
provisions recognised in FY18.
Fletcher Living – Waiata Shores
Residential | Land Development
20
Fletcher Building Limited Interim Report 2019 21 Fletcher Building Limited Interim Report 2019
Divisions

Construction
The division made good progress on its
turnaround, with the appointment of Peter Reidy
as Chief Executive on 29 October 2018, the
division trading profitably for the period, and
positive traction achieved on key governance,
risk management and commercial initiatives.
Peter Reidy brings an extensive construction
background to the division with experience
at Downer in New Zealand and Australia, and
more recently as Chief Executive of KiwiRail.
At 31 December 2018, the backlog of work for
the division, being the value of contracted work
not yet delivered, was $1.6 billion compared with
$2.3 billion at 31 December 2017. B+I accounted
for 63% of this reduction in backlog. The division
remains focused on a strong pipeline of
infrastructure and civil opportunities coming
to market as well as embedding improved risk
management processes at the tender and
execution stages. The division has been
successful in winning some key projects
The Construction division recorded
gross revenue for the period of
$866 million compared to $1,001
million for the prior corresponding
period, reflecting the impact of the
completion of a number of B+I
projects. The division returned
to profitability in the period with
an operating earnings result of
$15 million compared with a
loss of $619 million in the prior
corresponding period ($12 million
when excluding the B+I loss of
$631 million).

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue866 1,001 (135)(13%)
External revenue842 954 (112)(12%)
Operating earnings15 (619)634 NM
Funds(113)(330)217 (66%)
Trading cash flow(97)(112)15 (13%)
Operating earnings
2018
NZ$m
2017
NZ$m
Change
%
Higgins15
18 (17%)
Infrastructure, South Pacific, Brian Perry Civil
0(6)(100%)
15 12 25%
B+I
0(631)NM
Total15 (619)NM
including the Northern Interceptor project
for Watercare and a large share of Safe Roads
projects for the NZ Transport Agency as they
prioritise upgrading the existing roading
network over large new construction projects.
Overall, though, a tightening of bid disciplines
in the division has led to reduced work volume
and backlog.
With respect to B+I, there is no change to the
project provisions announced in February 2018
and the focus remains on project completion.
Of the 16 key projects, eight were completed
by 31 December 2018, seven are on track to be
completed by 31 December 2019, with the last
to be completed in 2020.
The earnings contribution from Higgins
decreased slightly compared to the prior
corresponding period, due primarily to the
completion of the N2 roading project in Fiji early
in FY19. Higgins Fiji has successfully re-tendered
for two maintenance contracts, underpinning its
ongoing presence in that market. In New Zealand,
performance was robust with 14% year on year
revenue growth and good forward workloads.
In aggregate, the other businesses in the division
(Infrastructure, Brian Perry, and South Pacific)
reported a small loss in the period as the current
project workload was insufficient to fully recover
overheads. The Infrastructure business
continues to record nil margin in respect of
the Puhoi to Warkworth project, a 50-50 joint
venture between Fletcher Construction and
Acciona. The partners are working actively on a
range of options to mitigate the project risks as
the key summer earthworks season progresses.
Trading cash flows were an outflow of $97 million
compared to an outflow of $112 million in the
prior corresponding period, reflecting the
continued cash outflows from the B+I project
loss provisions. The division, excluding B+I,
recorded a cash inflow of $7.4 million.
Waikato Expressway – Hamilton’s City Edge
Infrastructure | Building + Interiors (B+I)
South Pacific | Brian Perry Civil | Higgins
22
Fletcher Building Limited Interim Report 2019 23 Fletcher Building Limited Interim Report 2019
Divisions

Australia
Overall performance in the division was well
below expectations, impacted by a combination
of: a cooling residential market, which resulted
in lower volumes and heightened competitive
intensity in businesses exposed to that sector
(especially Laminex, Stramit and Tradelink);
and gross margin compression in all businesses,
as increased input costs (e.g. resin, fuel, steel)
could not be recovered in price in this
environment. Increased input costs were due in
part to a depreciation of the Australian currency
($10 million earnings impact compared to the
prior period). Earnings pressure in Australia was
offset to a degree by overhead cost savings, with
further work underway to ensure the division has
a sustainable future cost base.
Building Products Australia delivered gross
revenue growth of 1%, however operating
earnings before significant items decreased
by $12 million or 33%, driven by a reduction
The Australia division reported
gross revenue of $1,557 million
compared with $1,547 million in
the prior corresponding period, an
increase of 1%. Operating earnings
were $33 million, a decrease of
$20 million or 38% on the prior
corresponding period.

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue1,557
1,547 10 1%
External revenue
1,511 1,499 12 1%
Operating earnings (NZ$m)
33 53 (20)(38%)
Operating earnings (A$m)
30 49 (19)(39%)
Funds
1,876
1,879
(3)
(0%)
Trading cash flow
(71)26 (97)NM
Operating earnings2018
NZ$m
2017
NZ$m
Change
%
Building Products Australia24 36 (33%)
Distribution Australia2 4 (50%)
Steel Australia8 13 (38%)
Divisional costs(1) NM
Total33 53 (38%)
in earnings in Laminex. Gross revenue declined
3% in Laminex, with earnings also impacted by
increased material input costs, adverse product
mix, and one-off costs associated with industrial
action in September-October. Revenue in the
pipelines businesses increased as the civil
infrastructure market experienced continued
growth, however, foreign exchange rates and
increased raw material costs (especially in Iplex)
meant these revenue gains did not flow through
to earnings. Iplex announced market price
increases in the second quarter to offset these
cost pressures. Fletcher Insulation made a small
loss in the period as it was impacted by a fire at
its Rooty Hill facility.
Distribution Australia recorded modest gross
revenue increases of $4 million in the period
with operating earnings declining by $2 million
compared to the prior corresponding period.
In Tradelink, market share gains continued
in the small to medium network customer
segment (SME), and seven new stores were
opened. The project sector was far more
challenging, and declines here offset gains in
the SME segment. Oliveri Solutions (formerly
Tasman Sinkware) held revenue in line with the
prior period, though earnings declined slightly
due to adverse product mix.
Steel Australia reported a gross revenue
decline of 2% compared to the prior
corresponding period. Operating earnings
declined to $8 million with raw material costs
and unfavourable foreign exchange rates on
input costs not fully recovered though price
increases in a competitive market environment.
Trading cash flows were an outflow of $71 million
compared to an inflow of $26 million in the prior
corresponding period. Trading cash declined
due to lower earnings and adverse movements
in working capital, which were partly due to high
creditor balances at the start of the period and
an increase in inventory holdings in Iplex and
Laminex. A portion of these inventory increases
were due to specific project requirements and
will reduce through to 30 June 2019.
Tradelink
Building Products Australia: Laminex Australia
Iplex Australia | Rocla | Fletcher Insulation
Distribution Australia: Tradelink | Oliveri Solutions
Steel Australia: Stramit
24
Fletcher Building Limited Interim Report 2019 25 Fletcher Building Limited Interim Report 2019
Divisions

Formica gross revenue was up by 7%. In domestic
currencies gross revenue was up by 3%, driven
by gains in North America and Asia, with NZD
revenues also supported by favourable currency
translation. Operating earnings for Formica were
$37 million, up by 12% from $33 million in the
prior corresponding period.
In North America, gross revenue increased by
2% in domestic currencies, while operating
earnings increased by 4%. The business
achieved sales price increases to offset raw
material price rises, improved SG&A
performance, and continued to obtain
improvements in operational performance
to achieve the increase in operating earnings.
In Asia, gross revenue increased in domestic
currencies by 7% driven by continued
improvement in activity levels in the major
markets. Performance in China remained
The division reported gross revenue
of $581 million for the period,
an increase of 4% on the prior
corresponding period. Operating
earnings were $37 million, up 42%
from $26 million in the prior
corresponding period.

Six months ended 31 December
2018
NZ$m
2017
NZ$m
Change
NZ$m
Change
%
Gross revenue581
558 23 4%
External revenue
569 557 12 2%
Operating earnings before significant items
1
37 26 11 42%
Significant items
2
(68) (68)NM
Operating earnings
(31)26 (57)NM
Funds
1,173 1,246 (73)(6%)
Trading cash flow
35 35 NM
Operating earnings before significant items
1
2018
NZ$m
2017
NZ$m
Change
%
Formica 37
33 12%
Roof Tile Group
3 (4)NM
Divisional costs
(3)(3)0%
Total
37 26 42%
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 2018.
2. Details of significant items can be found in note 4 of
the interim financial statements.
Formica and
Roof Tile Group
strong with revenue up by 13% on the prior
corresponding period driven by continuing
project growth and market share gains. Modest
growth in Malaysia, Hong Kong, and Taiwan
were offset by slight reductions in Thailand
and Singapore. Operating earnings in Asia
were up by 17% on the prior corresponding
period, primarily due to the growth in revenue,
favourable currency translation and continuing
improvements in the operating facilities. The
benefits of these were muted in part by increasing
input costs due to a strengthening USD.
In Europe, gross revenue decreased by 2% in
domestic currencies compared to the prior
corresponding period. Operating earnings
decreased by $2 million on the prior
corresponding period. Gross margin fell due
to adverse change in product mix from higher
sales of lower margin thick laminate, and higher
raw material input costs which were largely
commodity driven. These were partially offset
by 10% overhead cost savings and a change in
the UK pension plans leading to a one-off gain.
The division recorded $68 million of significant
items during the period. These included the total
loss on sale of the Roof Tile Group business of
$18 million, transaction costs of $13 million
incurred to date as part of the divestment of the
Formica business, and an impairment charge of
$37 million resulting from the classification of the
Formica business as ‘held for sale’ at period end.
Formica Magnetic Writeable Laminates
Formica | Roof Tile Group
26
Fletcher Building Limited Interim Report 2019 27 Fletcher Building Limited Interim Report 2019
Divisions

Consolidated income statement (unaudited)
For the six months ended 31 December 2018
Note
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
Jun 2018
NZ$M
Revenue4,754 4,889 9,471
Cost of goods sold13(3,454)(4,161)(7,423)
Gross margin1,300 728 2,048
Selling and marketing expenses13(705)(672)(1,307)
Administration expenses (318)(394)(717)
Share of profits of associates and joint ventures8 16 26
Significant items4(68)(168)
Earnings before interest and taxation (EBIT)217 (322)(118)
Funding costs(62)(63)(157)
Earnings before taxation155 (385)(275)
Taxation expense6(61)117 96
Earnings after taxation94 (268)(179)
Earnings attributable to non-controlling interests(5)(5)(11)
Net earnings attributable to the shareholders89 (273)(190)
Earnings after taxation arises from:
Continuing operations147 (284)(177)
Discontinued operations5(53)16 (2)
94 (268)(179)
Net earnings per share from continuing operations
(cents)
Basic 16.6 (41.5) (25.2)
Diluted 15.7 (41.5) (25.2)
Net earnings per share (cents)
Basic 10.4 (39.2) (25.5)
Diluted 10.2 (39.2) (25.5)
Weighted average number of shares outstanding
(millions of shares)
Basic 853 696 745
Diluted 974 696 745
Dividends declared per share (cents)8.00.00.0
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated statement of comprehensive income (unaudited)
For the six months ended 31 December 2018
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Net earnings/(loss) attributable to shareholders89 (273)(190)
Net earnings attributable to non-controlling interests5 5 11
Net earnings/(loss)94 (268)(179)
Other comprehensive income
Items that do not subsequently get reclassified
to profit or loss:
Movement in pension reserve(4)(3)10
(4)(3)10
Items that may be reclassified subsequently
to profit or loss in the future:
Movement in cash flow hedge reserve(1)2 2
Movement in currency translation reserve (28)108 129
(29)110 131
Items that have been reclassified to profit or loss
during the period:
Reclassification from currency translation reserve (7)
(7)
Other comprehensive income(40)107 141
Total comprehensive income/(loss) for the period54 (161)(38)
Total comprehensive income/(loss) for the period
arises from:
Continuing operations97(225)(119)
Discontinued operations(43)64 81
54 (161)(38)
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Financial statements
28 Fletcher Building Limited Interim Report 2019 29 Fletcher Building Limited Interim Report 2019

Consolidated statement of movements in equity (unaudited)
For the six months ended 31 December 2018
NOTESShare capitalRetained earningsShare-based payments reserveCash flow hedge reserveCurrency translation reservePension reserveTotalNon-controlling interestsTotal equity
NZ$MNZ$MNZ$MNZ$MNZ$MNZ$MNZ$MNZ$MNZ$M
Total equity at 30 June 2017 2,678 1,216 13 (2) (286) (63)3,556 24 3,580
Total comprehensive income/
(loss) for the period (273)2 108 (3)(166)5 (161)
Movement in non-controlling
interests (5)(5)
Issue of shares9 9 9
Dividends paid to shareholders
of the parent(132)(132)(132)
Movement in share-based
payment reserve(5)(5)(5)
Movement in treasury stock 9 9 9
Total equity at 31 December 20172,696 811 8 (178)(66)3,271 24 3,295
Total equity at 30 June 2017 2,678 1,216 13 (2) (286) (63) 3,556 24 3,580
Total comprehensive
income/(loss) for the year (190)2 129 10 (49)11 (38)
Movement in non-controlling
interests (11)(11)
Issue of shares736 736 736
Dividends paid to shareholders
of the parent(132)(132)(132)
Movement in share-based
payment reserve(4)(4)(4)
Movement in treasury stock 11 11 11
Total equity at 30 June 20183,425 894 9 (157)(53)4,118 24 4,142
Change in accounting policies13 (19)(19)(19)
Adjusted equity at
30 June 20183,425 875 9 (157)(53)4,099 24 4,123
Total comprehensive
income/(loss) for the period 89 (1)(35)(4)49 5 54
Movement in non-controlling
interests (6)(6)
Movement in share-based
payment reserve1 1 1
Movement in treasury stock (1)(1)(1)
Total equity at
31 December 20183,424 964 10 (1)(192)(57)4,148 23 4,171
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated balance sheet (unaudited)
As at 31 December 2018
Note
Dec 2018
NZ$M
Dec 2017
NZ$M
June 2018
NZ$M
Assets
Current assets:
Cash and deposits284 190 665
Current tax assets67 35 72
Contract assets7 41 12 38
Derivatives19 6 6
Debtors1,159 1,468 1,629
Inventories1,756 1,800 1,748
3,326 3,511 4,158
Assets classified as held for sale5 412
Total current assets3,738 3,511 4,158
Non-current assets:
Property, plant and equipment1,687 2,247 2,241
Goodwill9 712 1,099 1,085
Intangible assets407 639 601
Investments in associates and joint ventures151 154 149
Retirement plan assets85 72 88
Other investments 1 1
Derivatives91 79 86
Deferred tax assets136 182 161
3,269 4,473 4,412
Assets classified as held for sale5 1,025
Total non-current assets4,294 4,473 4,412
Total assets8,032 7,984 8,570
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Financial statements continued
30
Fletcher Building Limited Interim Report 2019 31 Fletcher Building Limited Interim Report 2019

Note
Dec 2018
NZ$M
Dec 2017
NZ$M
June 2018
NZ$M
Liabilities
Current liabilities:
Creditors and accruals1,149 1,369 1,547
Provisions69 61 89
Current tax liabilities18 36 26
Derivatives2 5 7
Contract liabilities7 495 744 664
Borrowings8 434 1,701 185
2,167 3,916 2,518
Liabilities classified as held for sale5 183
Total current liabilities2,350 3,916 2,518
Non-current liabilities:
Creditors and accruals39 25 38
Provisions19 22 25
Retirement plan liabilities37 38
Deferred tax liabilities43 37
Derivatives26 39 19
Borrowings8 1,354 607 1,753
1,438 773 1,910
Liabilities classified as held for sale5 73
Total non-current liabilities1,511 773 1,910
Total liabilities3,861 4,689 4,428
Equity
Share capital3,424 2,696 3,425
Reserves724 575 693
Shareholders' funds4,148 3,271 4,118
Non-controlling interests 23 24 24
Total equity 4,171 3,295 4,142
Total liabilities and equity8,032 7,984 8,570
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
On behalf of the Board, 20 February 2019.
Bruce Hassall Rob McDonald
Chairman Director
Consolidated balance sheet (unaudited) – continued
As at 31 December 2018
Consolidated statement of cash flows (unaudited)
For the six months ended 31 December 2018
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
Jun 2018
NZ$M
Cash flow from operating activities
Receipts from customers4,859 5,003 9,810
Dividends received3 4 18
Payments to suppliers, employees and other(4,898)(4,805)(9,189)
Interest paid(61)(62)(158)
Income tax paid(17)(30)(85)
Net cash from operating activities(114)110 396
Cash flow from investing activities
Sale of property, plant and equipment1 14 19
Sale of subsidiaries/investments80 1 57
Purchase of property, plant and equipment and intangible
assets(139)(131)(304)
Purchase of subsidiaries/businesses(10)
Net cash from investing activities(68)(116)(228)
Cash flow from financing activities
Issue of shares727
Issue of capital notes221 221
Net debt repayment
(151)(117)(483)
Repurchase of capital notes
(55)
Distribution to non-controlling interests(11)(8)(15)
Dividends (123)(123)
Net cash from financing activities(162)(27)272
Net movement in cash held(344)(33)440
Add: opening cash and liquid deposits665 219 219
Less: cash balances classified as held for sale(36)
Effect of exchange rate changes on net cash(1)4 6
Closing cash and deposits284 190 665
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Financial statements continued
32
Fletcher Building Limited Interim Report 2019 33 Fletcher Building Limited Interim Report 2019

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 2018
annual report available on the Group website
at www.fletcherbuilding.com.
2. 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 following:
NZ IFRS 15 Revenue from Contracts
with Customers
The Group adopted NZ IFRS 15 from 1 July 2018
using the modified retrospective approach. As a
result, the Group has restated its opening equity
position as at 1 July 2018 by $19 million to reflect
the impact of transitioning to NZ IFRS 15. This
adjustment primarily reflects the change in the
timing of the recognition of revenue from house
sales in the Residential division.
In line with the requirements of the standard
with regards to the transition option adopted,
the Group has not restated the comparative
information presented, which continues to be
reported under previous revenue standards,
NZ IAS 11 and NZ IAS 18.
On adoption of NZ IFRS 15, the Group has
revised its accounting policies for revenue
recognition (where applicable) which are
disclosed in note 13. These interim financial
statements also include a number of additional
disclosures required by NZ IFRS 15, refer to
note 7.
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 16 Leases
NZ IFRS 16 was issued in February 2016 and
will be effective for the Group for the period
beginning 1 July 2019. The standard sets out
the principles for the recognition, measurement,
presentation and disclosure of leases for both
lessees and lessors. NZ IFRS 16 replaces
NZ IAS 17 and the related interpretations.
For lessees, NZ IFRS 16 removes distinctions
between operating leases and finance leases
and introduces a single lessee accounting
model. Under this new model, right-of-use assets
and lease liabilities are recognised for all lease
contracts except for short-term leases and
leases of low value assets.
The Group’s NZ IFRS 16 project is governed by
a Steering Group which oversees the relevant
project work streams, approves key decisions,
and provides regular updates to the Group's
Audit and Risk Committee.
During the half year to 31 December 2018 work
has progressed regarding:
• Developing an approach to key accounting
judgements;
• Collecting and validating the Group’s
complete portfolio of lease data; and
• Implementing an IT system solution to record
and calculate the NZ IFRS 16 impact.
The Group intends to adopt the standard using the modified retrospective approach. This will
require an adjustment to equity as at 1 July 2019, however prior year comparatives will not be
restated. From January 2019, the Group will finalise data collation and validation, embed a strong
internal control environment over the NZ IFRS 16 process and finalise the relevant accounting
policies. Given the complexity of the judgements involved, the impact of NZ IFRS 16 on the Group
is not yet fully quantified at this stage. However, the impact of NZ IFRS 16 on the Group financial
statements is expected to be significant.
3. SEGMENTAL INFORMATION
Segmental information is presented in respect of the Group’s industry and geographical segments.
Where stated, discontinued operations relate to the Formica and Roof Tile Group division and
represents the divestment of the Roof Tile Group and the classification of the Formica business
as held for sale at period end (refer to note 5).
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Industry segments
Gross sales
Building Products389 405 764
Distribution 809 797 1,530
Steel 283 267 532
Concrete 404 427 812
Residential and Development251 236 575
Construction866 1,001 1,685
Australia1,557 1,547 3,076
Other6 5 8
Continuing operations4,565 4,685 8,982
Divested51 108
Discontinued operations581 558 1,177
Group5,146 5,294 10,267
Less: Intercompany sales(392)(405)(796)
External sales per income statement4,754 4,889 9,471
34 Fletcher Building Limited Interim Report 2019 35 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
External sales
Building Products304 324 613
Distribution 786 777 1,490
Steel 216 204 411
Concrete 275 287 545
Residential and Development251 236 575
Construction842 954 1,605
Australia1,511 1,499 2,973
Continuing operations4,185 4,281 8,212
Divested51 108
Discontinued operations569 557 1,151
External sales per income statement4,754 4,889 9,471
EBIT before significant items and B+I
Building Products66 73 132
Distribution 50 49 104
Steel 21 23 49
Concrete 42 46 90
Residential and Development43 47 136
Construction15 12 52
Australia33 53 114
Corporate(22)(26)(45)
248 277 632
Building + Interiors (B+I)(631)(660)
Continuing operations248 (354)(28)
Divested6 13
Discontinued operations37 26 65
Significant items (note 4)(68)(168)
Earnings before interest and taxation (EBIT)
per income statement217 (322)(118)
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Significant items
Building Products
Distribution (3)
Steel (8)
Concrete (17)
Residential and Development
Construction(5)
Australia(49)
Corporate(66)
Continuing operations(148)
Divested37
Discontinued operations(68)(57)
Total(68) (168)
Depreciation, depletion and amortisation expense
Building Products6 7 13
Distribution 5 5 9
Steel 3 3 5
Concrete 25 22 45
Residential and Development
Construction10 11 20
Australia32 32 62
Corporate6 8 16
Continuing operations87 88 170
Divested3
Discontinued operations26 22 41
Group113 110 214
36 Fletcher Building Limited Interim Report 2019 37 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Capital expenditure
Building Products10 7 19
Distribution 11 8 20
Steel 8 6 14
Concrete 17 31 62
Residential and Development2 1
Construction15 16 33
Australia33 26 79
Corporate4 9 13
Continuing operations100 103 241
Divested2
Discontinued operations39 28 61
Group139 131 304
Funds*
Building Products512 495 494
Distribution 284 254 264
Steel 236 187 184
Concrete 638 657 628
Residential and Development661 562 604
Construction(113)(330)(238)
Australia1,876 1,879 1,804
Other (including debt and taxation)(1,096)(1,688)(869)
Continuing operations2,998 2,016 2,871
Divested33 27
Discontinued operations1,173 1,246 1,244
Total4,171 3,295 4,142
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes.
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Geographic segments
External sales
New Zealand2,600 2,750 5,220
Australia1,522 1,537 3,018
North America223 221 465
Asia177 163 314
Europe137 152 316
Other jurisdictions95 66 138
Group4,754 4,889 9,471
EBIT before significant items
New Zealand195 (425)(172)
Australia32 63 123
North America19 16 43
Asia26 23 38
Europe(5)(7)(6)
Other jurisdictions18 8 24
285 (322)50
Significant items (note 4)(68)(168)
Earnings before interest and taxation (EBIT)
per income statement217 (322)(118)
Funds*
New Zealand2,243 1,996 2,006
Australia1,891 1,888 1,810
North America312 318 350
Asia498 493 492
Europe355 383 270
Other (including debt and taxation)(1,128)(1,783)(786)
Group4,171 3,295 4,142
Non-current assets
+
New Zealand1,559 1,594 1,517
Australia1,355 1,454 1,420
North America297 308 319
Asia448 438 458
Europe276 299 315
Other46 46 48
Group3,981 4,139 4,077
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes.
+
Excludes deferred tax assets, retirement plan surplus and financial instruments.
38
Fletcher Building Limited Interim Report 2019 39 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
4. SIGNIFICANT ITEMS
Six months ended 31 December 2018
M&A Activity
(1)
NZ$M
Impairments
(2)
NZ$M
Total
NZ$M
Formica and Roof Tile Group(31)(37)(68)
Total significant items before taxation(31)(37)(68)
Tax expense on above items (3)(3)
Total significant items after taxation(34)(37)(71)
(1) M&A activity
On 1 November 2018 the Group divested the Roof Tile Group business for total proceeds of
$66 million. A net loss on sale of $18 million has been recorded, comprising a transaction loss
of $11 million and the reclassification of $7 million of the foreign currency translation reserve.
The Group has also incurred transaction costs during the period related to the sale of the
Formica business of $13 million.
(2) Impairments
During the period, the Group has recognised a $37 million impairment charge relating to the
Formica business, where goodwill has been impaired to recognise the business as held for sale
at the lower of carrying value and fair value less costs to sell (refer note 5).
Six months ended 31 December 2017
There were no significant items for the six month period ended 31 December 2017.
Year ended 30 June 2018
Restructuring
activity
(1)

NZ$M
M&A
Activity
(2)
NZ$M
Impairments
(3)
NZ$M
Total
NZ$M
Distribution (3) (3)
Steel (8) (8)
Concrete (17) (17)
Construction (5) (5)
Australia (9) (40) (49)
Formica and Roof Tile Group (5) (52) (57)
Divested businesses 37 37
Corporate (66) (66)
Total significant items before taxation(91)37 (114)(168)
Tax benefit / (charge) on above items 23 15 38
Total significant items after taxation(68)37 (99)(130)
(1) Restructuring activity
The Group recognised a charge of $91 million for costs associated with the restructure of the
Group’s operating model. The restructuring includes redundancies and exit costs, as well as:
• $20 million of impairments of various Corporate and Business Unit IT systems and associated
external advisory costs incurred.
• $7 million for costs associated with the integration of the Calder Stewart business into the
Steel division.
• $3 million for costs associated with the termination of the Formica US Pension Plan.
(2) M&A activity
The Group divested its 50 per cent stake in the Sims Pacific Metals joint venture for $42 million
with a resulting net gain on sale of $25 million, and its 20 per cent stake in Dongwha New Zealand
Limited for $17 million with a net gain on sale of $12 million.
(3) Impairments
During the year, the Group has recognised a $114 million impairment charge, relating to
businesses where the carrying amount exceeded the recoverable amount:
• $40 million relating to Rocla where goodwill of $11 million, brands of $21 million and inventories
of $8 million were impaired. Offsetting the impairment of brands is a $7 million reversal of the
associated deferred tax liability through tax expense.
• $52 million relating to Roof Tile Group where goodwill of $15 million, brands of $4 million, property,
plant and equipment of $29 million, and working capital of $4 million have been impaired.
• $5 million relating to the Forman Contracting brand asset, reflecting a revision in expected
medium-term revenues and earnings.
• $17 million relating to the impairment of assets of $12 million and $5 million for disposal costs
of a quarry within Winstone Aggregates.
40 Fletcher Building Limited Interim Report 2019 41 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
5. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
During the period, the Group divested the Roof Tile Group business and advanced the divestment
process for the Formica business to such a point that it meets the criteria under NZ IFRS 5 to be
classified as held for sale at period end. The divestment of the Formica business also meets the
definition of a disposal group under NZ IFRS 5, and the required disclosures for a discontinued
operation have been included accordingly. The relevant financial information for each business
is set out below.
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Roof Tile Groupi (19) (3) (54)
Formicaii (34) 19 52
Earnings after taxation from discontinued operations
per Income Statement
(53)16 (2)
i) Roof Tile Group
On 1 November 2018 the Group divested the Roof Tile Group for total proceeds of $66 million
(including a working capital adjustment of $7 million), of which $59 million had been received
at 31 December 2018. This resulted in the following loss on sale.
Six months
Dec 2018
NZ$M
Consideration 66
Less: carrying amount and transaction costs (77)
(11)
Less: reclassification of foreign currency translation reserve(7)
Loss on sale(18)
ii) Formica
On 18 December 2018 the Group announced it had entered into an agreement for the sale of the
global Formica business with an agreed sale price of US$840 million. Under NZ IFRS, the Group is
required to perform an impairment test prior to the classification of the business as held for sale to
ensure it is held at the lower of its fair value less costs to sell or the current carrying value of the
business. Accordingly, the Group has recorded an impairment of NZ$37 million of goodwill in these
interim financial statements as a result of that impairment test.
Financial Performance and Cash Flows
At period end, as the Formica business remains wholly owned by Fletcher Building Limited, the
financial performance and cash flow information presented below are for the full length of each
period presented.
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Revenue523487 1,006
Expenses (539) (462) (948)
Earnings before taxation (16)2558
Taxation expense (18) (6) (6)
Earnings after taxation from discontinued operations (34)1952
Movement in exchange differences on translation of
discontinued operations 1 47 82
Movement in pension reserve (4) (3) (4)
Other comprehensive income from discontinued operations (3) 44 78
Net cash inflow from operating activities 20 33102
Net cash outflow from investing activities (37) (36) (68)
Net cash outflow from financing activities (12) (10) (13)
Net increase/(decrease) in cash generated by the
discontinued operation (29) (13)21
42 Fletcher Building Limited Interim Report 2019 43 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
Assets and Liabilities held for sale
The following assets and liabilities were reclassified as held for sale in relation to the disposal group as
at 31 December 2018.
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Current assets:
Cash and deposits363132
Current tax assets213
Debtors138142148
Inventories238234231
Total current assets412409424
Non-current assets:
Property, plant and equipment502466491
Goodwill325347360
Intangible assets196188195
Deferred tax assets 2 3614
Total non-current assets 1,025 1,037 1,060
Total assets of disposal group held for sale 1,437 1,446 1,484
Current liabilities:
Creditors and accruals165160187
Provisions445
Current tax liabilities72119
Borrowings72018
Total current liabilities183205229
Non-current liabilities:
Provisions222
Retirement plan liabilities273735
Deferred tax liabilities406448
Borrowings444
Total non-current liabilities7310789
Total liabilities of disposal group held for sale256312318
6. TAXATION EXPENSE/(BENEFIT)
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Earnings/(loss) before taxation:155(385)(275)
Taxation at 28 cents per dollar 43(108)(77)
Adjusted for:
Higher/(lower) tax rate in overseas jurisdictions(1)(1)3
Non assessable income(1)(6)(27)
Non deductible expenses19222
Utilisation of previous unrecognised tax losses(4)
Tax in respect of prior years62
Tax losses not recognised535
Effects of changes in US tax legislation(5)
Other permanent differences(10)(7)(15)
61(117)(96)
Tax expense/(benefit) on earnings from continuing operations39(123)(102)
Tax expense/(benefit) on earnings from discontinued operations2266
61(117)(96)
Tax expense/(benefit) on earnings before significant items58(117)(58)
Tax expense/(benefit) on significant items3(38)
61(117)(96)
The deferred tax asset balance of $136 million at 31 December 2018 largely comprises construction
losses provided for in the prior 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.
44 Fletcher Building Limited Interim Report 2019 45 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
7. CONTRACT ASSETS AND LIABILITIES
The Group has adopted NZ IFRS 15 Revenue from Contracts with Customers during the period, which
requires additional disclosures of material contract assets and liabilities. The Group has previously
disclosed this information as 'Construction Contracts', and has restated the prior year balances for
completeness. There are no other material contract assets or liabilities than those disclosed below.
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Gross construction work in progress plus margin to date/less
provisions for losses7,079 5,603 5,878
Progress billings(7,533)(6,335)(6,504)
(454)(732)(626)
Construction contracts with cost and margin in advance of
billings41 12 38
Contract assets41 12 38
Construction contracts with billings in advance of cost and
margin(120)(115)(184)
Provision for future net cash outflows on loss-making
contracts(375)(629)(480)
Contract liabilities(495)(744)(664)
The provision for future net cash outflows on loss-making contracts at 31 December 2018 is expected
to be realised in cash outflows of $194 million through to 30 June 2019, and $181 million thereafter.
Included in sales is $842 million of contract revenue recognised over time during the period
(December 2017: $954 million, June 2018: $1,605 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 primarily include the programme of work throughout the contract period,
assessment of future costs after considering changes in the scope of work, maintenance and
defect liabilities, expected inflation (for unlet sub-trades) and performance bonuses or penalties.
The significant judgements inherent in accounting for the Group’s most material construction
projects are:
• The extent to which a project progresses in line with the complex project programme and
timetable previously formed and the resulting impact of any programme delays or gains on
project costs, especially project overheads (preliminary and general costs) and any liquidated
or other damages;
• Sub-contractor cost, in particular cost that is yet to be agreed in scope or price (including
inflationary pressures) or that relating to programme prolongation;
• Future weather and ground conditions.
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 ( > $200m original contract value) as at 31 December 2018:
Business Unit
Percentage
of completion
(% cost)
Forecast
completion
Commercial Bay – Fixed price contractB+I59%2019
NZICC – Guaranteed maximum price and fixed price contractB+I56%2020
Puhoi to Warkworth – Fixed price contract (Public Private
Partnership)Infrastructure43%2021
Hamilton City Edge Expressway - Alliance contract
Infrastructure
/ Higgins71%2021
Peka Peka to Otaki Expressway – Fixed price contract
Infrastructure
/ Higgins36%2021
Revenue Backlog by Business Unit as at 31 December 2018:
Current
Revenue
Backlog
NZ$M
Top 5 projects
as a % of
Revenue
Backlog
Buildings + Interiors47387%
Infrastructure457100%
Higgins49216%
Brian Perry Civil12829%
South Pacific4558%
1,595N /A
46 Fletcher Building Limited Interim Report 2019 47 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
8. BORROWINGS
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
June 2018
NZ$M
Bank loans434
Capital notes20071150
Private placements1981,150
Other loans364635
Borrowings – current434 1,701 185
Bank loans93 97
Capital notes366 550 416
Private placements852 1,181
Other loans43 57 59
Borrowings – non-current1,354 607 1,753
Carrying value of borrowings (as per balance sheet)1,788 2,308 1,938
Borrowings – classified as held for sale11
Carrying value of borrowings1,799 2,308 1,938
Less: impact of debt hedging activities (included within
derivatives)(112)(48)(92)
Borrowings after impact of hedging activities1,687 2,260 1,846
Add: fair value hedge adjustment included in borrowings28 13 31
Borrowings excluding derivative adjustments1,715 2,273 1,877
Total available funding2,547 3,108 2,705
Unutilised banking facilities832 835 828
Net Debt
Cash and deposits284190665
Cash and deposits – classified as held for sale36
Borrowings – classified as held for sale(11)
Current borrowings(434)(1,701)(185)
Non-current borrowings(1,354)(607)(1,753)
Net Debt(1,479)(2,118)(1,273)
9. GOODWILL
The Group performs a detailed impairment
assessment annually and considers indicators
of impairment at each interim reporting date.
At 31 December 2018, the Group performed
a review of indicators of impairment for all
significant cash-generating units.
Formica
The Group announced on 18 December 2018
that a sale & purchase agreement had been
signed for the sale of the global Formica
business. As outlined in note 5, the Group
recognised an impairment of $37 million of
goodwill to bring the carrying value in line with
the business unit's fair value less costs to sell.
Other business units
The Group reviewed the performance of
all business units at 31 December 2018 and
considered each individual CGU for impairment
indicators. There was no impairment required
as a result of this review.
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).
All of the Group's derivatives are in designated
hedge relationships and are measured and
recognised at fair value.
All 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 is 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 under level 2, by discounting
future principal and interest cash flows at the
current market interest rate plus an estimated
credit margin that is available for similar financial
instruments with a similar credit profile to the
Group. The interest rates across all currencies
used to discount future principal and interest
cash flows are between 1.69% and 6.68%
(December 2017: 1.70% and 7.14%; June 2018:
1.70% and 7.00%) including margins, for both
accounting and disclosure purposes.
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 2018 annual report.
48 Fletcher Building Limited Interim Report 2019 49 Fletcher Building Limited Interim Report 2019

13. IMPACT OF NZ IFRS 15 AND OTHER
RECLASSIFICATIONS
This note explains the impact of the adoption
of NZ IFRS 15 Revenue from Contracts with
Customers on the Group's interim financial
statements and also discloses the new
accounting policies that have been applied
from 1 July 2018, where they are different to
those applied in prior periods.
NZ IFRS 15 - Revenue from Contracts
with Customers
Revenue was previously recognised when it
was probable that work performed will result
in revenue whereas under the new standard,
revenue is recognised when it is highly probable
that a significant reversal of revenue will not
occur. The following are the accounting policies
applicable to the recognition of revenue for the
Group for the period ended 31 December 2018.
Construction division
Construction contract revenue
The Group derives revenue from the
construction of building and infrastructure
projects across New Zealand and the South
Pacific. Contracts entered into may be for
the construction of one or several separate
inter-linked pieces of large infrastructure.
While it is uncommon, contracts can be entered
into for the building of several projects. Where
this occurs, the Group will identify the single
or multiple performance obligations and
allocate the total transaction price across each
performance obligation based on stand-alone
selling prices. The transaction price is normally
fixed at the start of the project.
The nature of construction projects leads
to variations in the project size and scope.
It is also normal practice for contracts to
include bonus and penalty elements based
on timely construction or other performance
criteria known as variable consideration,
discussed below.
The performance obligation is fulfilled over
time and as such revenue is recognised over
time. As work is performed on the assets being
constructed they are controlled by the customer
and have no alternative use to the Group, with
the Group having a right to payment for
performance to date.
Generally, contracts identify various inter-linked
activities required in the construction process.
Revenue is recognised on the measured output
of each process based on appraisals that are
agreed with the customer on a regular basis.
Maintenance contract revenue
Services revenue is primarily generated from
maintenance services supplied to roading
assets owned by local or central Government in
New Zealand and the South Pacific. This revenue
also arises in respect of infrastructure assets
previously constructed by the Group where
maintenance was included in the contract.
The service contracts are typically determined
to have one single performance obligation
which are significantly integrated and are fulfilled
over time. There is no change to the revenue
recognition methodology previously utilised.
Variable consideration
Revenue in relation to variations, such as a
change in the scope of the contract, are only
included in the transaction price when it is
approved by the parties to the contract, the
variation is enforceable, and the amount
becomes highly probable. This is a higher
threshold than is required by previous
accounting standards.
Residential and Development division
Through the Residential division the Group
derives income from the sale of completed
houses, construction type projects for enabling
or utilities works for large developments, and
the sale of development sites surplus to Group
requirements. Revenue is recognised when
12. RECONCILIATION OF NET EARNINGS TO NET CASH FROM OPERATING ACTIVITIES
Six months
Dec 2018
NZ$M
Six months
Dec 2017
NZ$M
Year ended
Jun 2018
NZ$M
Net earnings94 (268)(179)
Add/(Less) non-cash items:
Depreciation, depletions and amortisation 113110214
Other non-cash items9(16)148
Taxation44 (147)(181)
(Gain)/loss on disposal of businesses and property, plant
and equipment1 (36)
167 (53)145
Net working capital movements
Residential and Development(29)9 (28)
Construction(124)491 407
Other divisions:
Debtors8593(12)
Inventories(96)(61)(58)
Creditors(211)(101)121
(375)431 430
Net cash from operating activities(114)110 396
50 Fletcher Building Limited Interim Report 2019 51 Fletcher Building Limited Interim Report 2019

Notes to the consolidated financial statements continued
control passes to the customer for each type of transaction. House sales are commonly
recognised at the time of settlement, when title passes to the customer and payment is received.
Enabling or utilities works are recognised over time using a percentage of completion method.
Land development sales are recognised in line with the requirements of the specific sale and
purchase agreement.
Performance obligations vary between the types of transactions. The sale of a completed house
from Group inventory to a customer is a single performance obligation, as houses are not
constructed under contract from a customer. For works contracts and development sales,
the division reviews the terms of the sale to determine whether the performance obligations
are distinct and separately identifiable.
Other divisions
Sale of goods
The materials and distribution businesses within the Group recognise revenue when control of
the goods has passed to the customer, the associated costs and possible return of goods can be
estimated reliably, there is no continuing management involvement with the goods, and there is
a high probability that a significant reversal in the revenue recognised will not occur. Revenue is
measured net of returns, trade discounts and volume rebates. The timing of the transfer of control
varies depending on the individual terms of the sales agreement. For most sales, the transfer usually
occurs when the product is delivered to the customer; however, for some international shipments
the transfer occurs on loading the goods onto the relevant carrier at the port. Generally, for such
products the customer has no right of return.
Impact on the interim financial statements
The Group has adopted NZ IFRS 15 Revenue from Contracts with Customers from 1 July 2018 which
resulted in changes in accounting policies and adjustments to the amounts recognised in the interim
and annual financial statements. In accordance with the transition provisions in NZ IFRS 15, the Group
has adopted the new rules retrospectively using the modified approach and taken advantage of the
applicable practical expendients possible, primarily regarding contract modifications. Under this
approach, the comparative periods presented have not been restated, rather the cumulative effect
of applying this standard has been applied to the opening balance of retained earnings. The main
components of this cumulative effect are shown below.
NZ$M
Retained earnings
Retained earnings – as presented894
Write-off of pre-contract costs previously capitalised(1)
Restatement of variable consideration previously recognised(1)
Restatement of timing of residential sales(17)
Opening reserves – restated875
Income Statement classifications
Selling and marketing expenses
During the period the Group has elected to change the classification of warehousing and
freight costs for finished goods inventory. These costs are now disclosed in selling and marketing
expenses which provides a more useful perspective on the underlying nature of these transactions.
The comparative periods have also been restated below to improve comparability of these lines in
the Income Statement.
Other gains and losses
The Group has historically reported smaller items of a one-off nature in a separate line on the
Income Statement, described as 'other gains and losses'. This was in contrast to the presentation
of expenses in the Income Statement by function and in addition to the disclosure of 'significant
items' (refer to note 4). To provide clarity, the Group will continue to classify significant one-off
events as significant items, with the remainder recognised according to their function in the
Income Statement. The comparative information has been restated below to improve the
comparability of the financial statements.
For the six month period ended 31 December 2017
Reported
NZ$M
Selling and
Marketing
Other gains
and losses
Restated
NZ$M
Cost of goods sold(4,341)202 (22)(4,161)
Gross margin548 202 (22)728
Selling and marketing expenses(470)(202)(672)
Other gains and losses(22)22
For the year ended 30 June 2018
Reported
NZ$M
Selling and
Marketing
Other gains
and losses
Restated
NZ$M
Cost of goods sold(7,775)380(28)(7,423)
Gross margin1,696 380(28)2,048
Selling and marketing expenses(927)(380)(1,307)
Other gains and losses(28)28
14. SUBSEQUENT EVENTS
On 20 February 2019, the directors declared a dividend of 8.0 cents per share, payable on
10 April 2019.
52 Fletcher Building Limited Interim Report 2019 53 Fletcher Building Limited Interim Report 2019

Review Report to the Shareholders of Fletcher Building Limited (“the Company”) and its subsidiaries
(together “the Group”)
We have reviewed the consolidated interim financial statements on pages 28 to 53, which comprise
the consolidated balance sheet as at 31 December 2018, consolidated income statement, consolidated
statement of comprehensive income, consolidated statement of movements in equity and consolidated
statement of cash flows for the period ended on that date, and a summary of significant accounting policies
and other explanatory information.
This report is made solely to the Company's shareholders, as a body. Our review has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them in a
review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our review
work, for this report, or for our findings.
Directors’ Responsibilities
The Directors are responsible for the preparation and fair presentation of the consolidated interim financial
statements which comply with New Zealand Equivalent to International Accounting Standard 34 Interim
Financial Reporting and for such internal control as the Directors determine is necessary to enable the
preparation and fair presentation of the interim consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Reviewer’s Responsibilities
Our responsibility is to express a conclusion on the consolidated interim financial statements based on our
review. We conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed
by the Independent Auditor of the Entity. NZ SRE 2410 requires us to conclude whether anything has come
to  our attention that causes us to believe that the consolidated interim financial statements, taken as a
whole, are not prepared in all material respects, in accordance with New Zealand Equivalent to International
Accounting Standard 34 Interim Financial Reporting. As the auditor of Fletcher Building Limited, NZ SRE 2410
requires that we comply with the ethical requirements relevant to the audit of the annual financial statements.
Basis of Statement
A review of the consolidated interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted
in accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an
audit opinion on the consolidated interim financial statements.
We have provided other services to the Group in relation to taxation and other assurance services. We have
no other relationship, or interest in, the Group.
Conclusion
Based on our review nothing has come to our attention that causes us to believe that the consolidated
interim financial statements, set out on pages 28 to 53, do not present fairly, in all material respects, the
financial position of the Group as at 31 December 2018 and its financial performance and cash flows for
the six month period ended on that date in accordance with New Zealand Equivalent to International
Accounting Standard 34 Interim Financial Reporting.
Our review was completed on 20 February 2019 and our findings are expressed as at that date.
Chartered Accountants
Auckland
NZ cents per share
NZ Residents
on Top
Marginal
Tax Rate of
33%
Australian
Residents
on Top
Marginal
Tax rate of
47%
Australian
Residents
on 15%
Tax Rate
Other Non
Residents
8
Dividend declared8.00008.00008.00008.0000
NZ imputation credits
2
NZ supplementary dividend
3
Australian franking credits
4
Gross dividend for NZ tax purposes8.00008.00008.00008.0000
NZ tax (33%)
5
(2.6400)
NZ non-resident withholding tax (15%)
6
(1.2000)(1.2000)(1.2000)
Net cash received after NZ tax5.36006.80006.80006.8000
Australian tax (47% and 15%)
7
(3.7600)(1.2000)
Reduced by offset for NZ non-resident
withholding tax1.20001.2000
Less Australian franking credit offset
Net cash dividend to shareholders after tax5.36004.24006.80006.8000
Notes:
1. This summary is of a general nature and the tax rates used and the calculations are intended for guidance only. As individual
circumstances will vary, shareholders are advised to seek independent advice.
2. No imputation credits are attached to this dividend.
3. A supplementary dividend is only payable to non-New Zealand shareholders if the dividend is fully or partly imputed. It has
the effect of removing the cost of New Zealand non-resident withholding tax (NRWT) on that part of the dividend which
has imputation credits attached. As noted above, no imputation credits are attached to this dividend. Accordingly, no
supplementary dividend is payable.
4. There are no Australian franking credits attached to this dividend and the conduit foreign income component is nil.
5. For all NZ resident shareholders who do not hold an exemption certificate, resident withholding tax (RWT) is required to
be deducted at 33%. Accordingly, for those shareholders, a deduction of 2.64 cents per share will be made on the date of
payment from the dividend declared of 8.0 cents per share and forwarded to Inland Revenue. Resident shareholders who
have a tax rate less than 33% will need to file a tax return to obtain a credit for the RWT deduction in excess of their marginal
tax rate.
6. NZ non-resident withholding tax at the rate of 15% on the gross dividend for NZ tax purposes.
7. This summary uses two examples of the effect of tax in Australia. The first uses the top marginal tax rate of 47%, including
the Medicare levy. The second example uses the 15% income tax rate applicable in Australia to complying superannuation
funds, approved deposit funds and pooled superannuation trusts. Different tax rates will apply to other Australian
shareholders, including individuals, depending on their circumstances.
The Australian tax is calculated as:47% Rate15% Rate
Gross dividend for NZ tax purposes
plus franking credits8.00008.0000
Gross dividend for Australian tax purposes8.00008.0000
Australian tax3.76001.2000
8. This illustration does not purport to show the taxation consequences of the dividend for non-residents of New Zealand or
Australia. Shareholders resident in other countries are encouraged to consult their own taxation advisor.
Interim Dividend
54 Fletcher Building Limited Interim Report 2019 55 Fletcher Building Limited Interim Report 2019

Registry
Computershare Investor Services Limited
(Computershare) looks after our share register
and is your first point of contact for any queries
regarding your investment in Fletcher Building.
You can view your investment portfolio, elect
to enrol in our Dividend Reinvestment Plan,
indicate your preference for electronic
communications, supply your email address,
change your details or update your payment
instructions relating to Fletcher Building at any
time by visiting the Computershare Investor
Centre at www.investorcentre.com/nz.
New Zealand
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142, New Zealand
Level 2, 159 Hurstmere Road,
Takapuna, Auckland 0622, New Zealand
Phone: +64 9 488 8777
Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
Web: www.computershare.com/nz
Australia
Computershare Investor Services Pty Limited
GPO Box 3329
Melbourne, VIC 3001, Australia
Yarra Falls, 452 Johnston Street
Abbotsford, VIC 3067, Australia
Phone: 1800 501 366 (within Australia)
Phone: +61 3 9415 4083 (outside Australia)
Fax: +61 3 9473 2500
Receiving your communications electronically
We encourage shareholders to receive investor
communications electronically as it keeps costs
down, delivery of our communications to you is
faster and it is better for the environment. All you
need to do is log in to www.investorcentre.com/nz
and update your ‘Communication Preference’
to enable us to send all your investor
correspondence electronically where possible.
Board of Directors
Bruce Hassall (Chairman)
Martin Brydon
Tony Carter
Barbara Chapman
Rob McDonald
Doug McKay
Cathy Quinn
Steve Vamos
Chief Executive Officer
Ross Taylor
Chief Financial Officer
Bevan McKenzie
Group General Counsel and
Company Secretary
Charles Bolt
Registered Office
New Zealand
Fletcher Building Limited
810 Great South Road, Penrose
Auckland 1061, New Zealand
Private Bag 92114
Auckland 1142, New Zealand
Phone: +64 9 525 9000
Email: fbcomms@fbu.com
Web: www.fletcherbuilding.com
Australia
Level 4, 68 Waterloo Road
Macquarie Park, NSW 2113, Australia
Locked Bag 3501
North Ryde BC, NSW 1670, Australia
Phone: +61 2 8986 0900
Investor Relations Enquiries
Aleida White
Head of Investor Relations
Email: investor.relations@fbu.com
Phone: +64 9 525 9043
Corporate Directory
insight
creative.co.nz
FLE156
56 Fletcher Building Limited Interim Report 2019 57 Fletcher Building Limited Interim Report 2019

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PRELIMINARY HALF YEAR REPORT ANNOUNCEMENT
Reporting period
Previous reporting period
Revenue from ordinary activities
Profit from ordinary activities after tax
attributable to security holders
Net profit attributable to security holders
Interim dividend
Record date
Dividend payment date
Comments
Refer News Release
Amount per securityImputed amount per security
8 centsN/A
22-Mar-19
Amount NZ$millionPercentage change
FLETCHER BUILDING LIMITED
Results for announcement to the market
6 Months to 31 December 2018
6 Months to 31 December 2017
Half year ended 31 December 2018
10-Apr-19
4,754-3%
89-133%
89-133%
1

PRELIMINARY HALF YEAR REPORT ANNOUNCEMENT
2.1. Preliminary half annual report on results for the half year ended 31 December 2018 (including the comparative results for the half year ended 31 December
2017) in accordance with Listing Rule 10.3
The amounts as presented have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand which is
the New Zealand equivalent to International Financial Reporting Standards (NZIFRS). They also comply with International Financial
Reporting Standards. The amounts presented are based on unaudited accounts.
2.3 (a) Statement of Financial Performance
Refer to Financial Statements.
2.3 (b) Statement of Financial Position
Refer to Financial Statements.
2.3 (c) Statement of Cash flows
Refer to Financial Statements.
2.3 (d) Dividends
Dividends declared
Amount per
per security
Interim dividend, payable 10 April 2019:NZ 8.0 cps
Record date for determining entitlement to the dividend:Friday 22/03/19
There are no New Zealand imputation credits attached to this dividend.
There are no Australian franking credits attached to this dividend.
Dividends recognised or paid
There was no dividends recognised or paid during the period.
2.3 (e) Dividend reinvestment plan
N/A
2.3 (f) Net Tangible Assets per security
Dec 2018Dec 2017
Net tangible assets per ordinary security (NZ$)2.952.20
2.3 (g) Control of Entities gained or lost during year
N/A
2.3 (h) Associates and joint ventures
Fletcher Building has an interest in the following principal associates / joint ventures:
Dec 2018Dec 2017
Altus NZ Limited50.0%50.0%
Hexion Australia Pty Ltd50.0%50.0%
Sims Pacific Metals Limitednil50.0%
Wespine Industries Pty Limited50.0%50.0%
Dongwha Pattina NZ Limitednil20.0%
For Half Year Ended 31 December 2018
(referred to in this report as the "current year")
Percentage of ownership interest
(ordinary shares, units, etc)
Name of Associate / Joint Venture
The Dividend Reinvestment Plan will not be operative for this dividend payment.
2

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APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
Interim
x
YearSpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FWP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
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Commence Quoting New Securities:Security Code:
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Notice of event affecting securities
Fletcher Building Limited
Charles BoltDirectors resolution
09 525 918809 525 903020022019
853,347,141 Ordinary SharesNZFBUE0001S0
In dollars and cents
Retained Earnings
$0.080000
Enter N/A if not
applicable
$$0.026400
$0.012000
NZD
$68,267,771
Date Payable
22 March, 201910 April, 2019