Fletcher Building – FY19 Results and Annual Report

P a g e | 1



Fletcher Building returns to profit in year of strong execution

Auckland, 21 August 2019: Fletcher Building Limited’s FY19 financial results reflect a solid NZ
performance, a return to profitability, and successful execution of the first year of its five-year
strategy aimed to refocus and grow the business.

Summary:
➢ Revenue from continuing operations of $8,308 million, up 1% on FY18
➢ Net Profit After Tax of $164 million, compared to a loss of $190 million in FY18
➢ Final dividend of 15 cents per share declared, to be paid on 19 September 2019
➢ EBIT before significant items $631 million, up from $50 million in FY18
➢ Balance sheet materially strengthened, NZ$300 million share buyback programme

$m
Continuing Operations
Total Operations
FY19 FY18 Var FY19 FY18 Var
Revenue 8,308 8,211 +97 9,307 9,471 (164)
EBIT before
significant items
549 (29) +578 631 50 +581
NPAT 246 (239) +485 164 (190) +354
EPS (cps) 28.8 (32.1) +60.9 19.2 (25.5) +44.7

Fletcher Building Chief Executive Ross Taylor said: “FY19 was an important transition year for the
Company and we made significant progress on our five-year strategy. Fletcher Building delivered
a solid financial performance for the year, and I am pleased with the work we carried out to
stabilise and refocus the Company.”

Revenue from continuing operations of $8,308 million increased slightly compared to the prior
year. Total EBIT before significant items was $631 million, which was within the Company’s
earnings guidance range and compared to $50 million in the prior year.

Continuing operations excludes the divested Roof Tile Group, Formica, Dongwha & Sims Pacific Metals operations.
EBIT before significant items is a non-GAAP measure used by management to assess the performance of the Group
and has been derived from Fletcher Building Limited’s financial statements for the year ended 30 June 2019.

P a g e | 2

“In New Zealand our core building products and distributions businesses delivered good results,
maintaining strong market positions and revenues despite operating in a highly competitive
environment. The Construction division stabilised which led to a return to profitability, and we
are on track to complete the remaining legacy B+I projects within the provisions we set in
February 2018.

In Australia, the performance reflected tough market conditions, rising input costs and poor
operating disciplines in some areas. Turnaround plans are well underway to reset these
businesses and deliver growth in FY20.

The Company’s decision to operate in a more focused geographic footprint led to the sale of
international businesses Roof Tile Group and Formica during the year. Both sales were
completed ahead of schedule and the proceeds received were above expectations. The sale of
Formica for NZ$1.2 billion materially strengthened the Company’s balance sheet, we have
commenced our NZ$700-800 million debt reduction and will distribute up to NZ$300 million to
shareholders through an on-market share buyback.

The Company reinstated dividend payments during FY19 with a total dividend for the year of 23
cents per share which was weighted to the final payment. The final dividend of 15 cents per share
will be paid to shareholders on 19 September 2019 and will be unimputed and unfranked for NZ
and Australian taxation purposes. The dividend reinvestment plan will not be operative for this
dividend payment.

“FY19 was a year of solid execution against the Company’s strategy. We have landed a leaner
organisation and end the year with a more manageable footprint and a strong balance sheet.
Looking ahead, we will drive performance across the business in FY20.”

#Ends
For further information please contact:
MEDIA
Simone Rosentreter
Senior External Communications Advisor
+64 21 137 4137
simone.rosentreter@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
aleida.white@fbu.com

---

F O C U S
Fletcher Building
Full Year Results to
30 June 2019
ROSS TAYLOR
—Chief Executive Officer
BEVAN MCKENZIE
—Chief Financial Officer
21 August 2019

F O C U S
Fletcher Building
Full Year Results Presentation 2019
Agenda
1. ResultsOverview Ross Taylor
2. Divisional Performance Ross Taylor
3. Financial Results Bevan McKenzie
4.Outlook Ross Taylor

✓Leaner organisation, strengthened governance
✓Returned to profitability, dividends reinstated
✓Strong balance sheet, material debt reduction
✓Capital return of up to $300m via share buyback
FY19 refocus and stabilise transition year successfully delivered
✓Roof Tile Group and Formica sold for $1.25b, delivered ahead of schedule
1. Refocus on
the NZ core
2. Stabilise
Construction
3. Strengthen
Australia
4. Exit non-core
businesses
Fletcher Building Full Year Results Presentation | © August 2019
✓Returned to profits, no change to B+I provisions
✓On track, revenue in line with competitive market
✓Intervened and set up for turnaround
3

Earnings within guidance, strong balance sheet and dividend
4
Note: All metrics include discontinued operations RTG and Formica which were sold during the year
1
Measures before significant items are non-GAAP measures used by management to assess the performance of the business and has been derived from
Fletcher Building’s financial statements for the year ended 30 June 2019. Details of significant items can be found in note 2ofthe financial statements.
Fletcher Building Full Year Results Presentation | © August 2019
Revenue
$9,307m
FY18: $9,471m
Net earnings
$164m
FY18: $(190)m
EBIT before sig
items
1
$631m
FY18: $50m
Cash flow from
operating
activities
$153m
FY18: $396m
EPS before sig
items
43.0c
FY18: (8.1)c
Dividends
23c
FY18: nil
Net debt
$325m
FY18: $1.3b
Return on Funds
Employed before
sig items
11.8%
FY18: 0.9%

Improved balanced scorecard across most metrics
5
Fletcher Building Full Year Results Presentation | © August 2019
SafetyEngagement
SustainabilityCustomer
•Deeply saddened by recent
fatalities
•Group wide ‘Protect’
programme reset
•Continue to drive TRIFR to
under 5.0 (well below
industry average)
•Drive employee engagement
>80% (top quartile) with no
business lower than 70%
•Committed to a Science Based
Target to reduce our carbon
emissions -in line with NZ
Government carbon reduction
aims and to limit global
warming to below 2
o
C
•Focus on NZ cement
manufacture and power in
Australia
•Drive to a best in class net
promoter score of >55
•Rollout and embed customer
service promises across
all businesses
Total Recordable Injury
Frequency Rate
1
Employee Engagement Rating
Net Promoter
Score
3
6.7
6.9
5.1
5.0
FY16FY17FY18FY19
24
33
41
FY17FY18FY19
66%
67%
70%
71%
FY16FY17FY18FY19
1
TRIFR = Total no. of recorded injuries per million man hours worked.
2
Carbon Emission Intensity = FBU Co2 Tonnes for every $1m of revenue. Restated per ISO 14064-1, previously overestimated; increase in FY18 is due to Higgins acquisition
3
Net Promoter Score calculated as % Promoters (9 -10) minus % Detractors (0 -6).
FY16FY17FY18FY19
143
141
149
Carbon Emission
Intensity
2
139

Well positioned to drive shareholder returns into the future
6
•Manageable footprint
•Population and GDP growth
•Geographic isolation gives “in country” scale positions a competitive advantage
•Global innovation “fast follower”, but first in our home markets
•Cheaper and better automation making developed country manufacturing more viable
•Strong balance sheet, leverage of 0.4x against target leverage range of 1.5x-2.5x
•Target ROFE 15%, target cash conversion 70%
•Diversified funding sources, robust liquidity and maturity profile
•$300m buy back, dividend reinstated, dividend pay out ratio of 50-75% NPAT
Focus
Financial
Discipline and
Returns
Consistency
Leveraged to
upside
Positioned for
macro tailwinds
•Drive and grow our strong and well positioned NZ businesses
•Trap the upside potential in our underperforming Australian businesses
•Leverage of skills and IP
Fletcher Building Full Year Results Presentation | © August 2019

F O C U S
Fletcher Building
Full Year Results Presentation 2019
Agenda
1. ResultsOverview Ross Taylor
2. Divisional Performance Ross Taylor
3. Financial Results Bevan McKenzie
4.Outlook Ross Taylor

50
710
631
0
1
17
5
660
(13)
(5)
(16)
(6)
(5)
(57)
FY18 Actual
FY18 B+I
FY18 Actual ex B+I
Divested in FY18 only
Building Products
Distribution
Steel
Concrete
Residential and
Development
Construction ex B+I
Australia
Formica and Roof Tile
Group (discontinued
operations)
Corporate
FY19 Actual
FY19 vs FY18 EBIT earnings bridge
Fletcher Building Full Year Results Presentation | © August 2019
8
1
Before significant items, including discontinued operations
EBIT
1
(NZ$m)

Industry context New Zealand
Elevated activity in all sectors
Residential Consents (#)
NZ Historical
Value of Commercial and Infrastructure work put in
place (Nominal $m)
Key:ResidentialCommercialInfrastructure
Fletcher Building Full Year Results Presentation | © August 2019
9
FY15FY16FY17FY18FY19
25k
29k
30k
33k
35k
6,059
6,625
7,317
7,635
8,824
6,316
6,053
6,046
7,274
6,863
FY15FY16FY17FY18FY19F
Residential
•Residential activity remains elevated, c35k consents in FY19, highest
levels since mid 1970’s
•Supported by ongoing population growth of c2%: c50k net migration
to Jun’19
•Continued shift to apartments and townhouses driving decline in
average floor area overall
•Stable inventory of houses for sale, stable national house prices,
sales of Auckland homes in $650k-$1,000k price band remain stable
Commercial
•Activity at historical high levels: annual value of work put in place
>$8b
•Growth rates remain high across most regions
Infrastructure
•Activity at historical high levels, driven by large roading projects
•Pipeline of projects slowed in past 12 months, as change in
Government priorities flows through with shift towards road safety
upgrades, rail and water
Source: Infometrics, Statistics NZ

10
Building Products performance
•Increased revenue in WWB, TINZ and Laminex benefiting from
strong consents and strong market positions, offset by lower
rural activity impacting pipelines businesses
•Slightly lower EBIT: improved WWB and TINZ earnings offset
by lower pipelines contribution and continued input cost
pressures (energy, gypsum, resin) which could not be fully
recovered in price
•Humesteam and business reset after underperformance and
ERP deployment complications
•Innovation through WWB’s new rigid air barrier Weatherline®,
Laminex product range expansion and refresh, mobile
extrusion plant purchase in Iplex
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
764759(1)%
EBITDA
1
145139(4)%
EBIT
1
132127(4)%
Trading Cash Flow
142142-
EBIT margin %
17.3%16.7%
(0.5)%pt
ROFE
2
%
27%25%
(2)%pt
Capex
1937
95%
Cash Conversion
3
95%83%
(12)%pt
Domestic board sales (000m
2
)
-1%+3%
Glasswoolsales (tonnes)
-1%+3%
Concrete pipe vol(000t)
-9%+3%
Plastic pipe sales vol(t)
+15%-5%
1
Before significant items
2
EBIT/Closing Funds
3
Cash conversion = FCF/EBIT
Fletcher Building Full Year Results Presentation | © August 2019
Resi, 52%Com, 17%Infra, 31%
Divisional Exposure
Building Products

11
Distribution performance
•Growing revenue, benefiting from elevated market
backdrop particularly in Auckland
•Solid EBIT from PlaceMakers and Micoearnings grew
strongly, offset by Snappy
•New PlaceMakers branch in Rotorua
•New Mico branch in Motueka and innovation through
expansion of category offering into concrete pipes
•Continued investment in upgrades to branches and
showrooms
•PlaceMakers digital innovation investment continued with
new transportation management system, digital mobility
roll out, and new head office ERP system in place
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
1,530
1,596
4%
EBITDA
1
113
114
1%
EBIT
1
104
104
-
Trading Cash Flow
11298(13)%
EBIT margin %
6.8%6.5%
(0.3)%pt
ROFE
2
%
39%35%
(4)%pt
Capex
2023
15%
Cash Conversion
3
88%72%
(16)%pt
PlaceMakers revenue
+0.1%+4%
PlaceMakers stores
6263
Mico revenue
+4.5%+4%
Mico stores
6566
Fletcher Building Full Year Results Presentation | © August 2019
Resi, 71%Com, 21%
Infra
,
8%
Divisional Exposure
Distribution
1
Prior year excluding significant items
2
EBIT/Closing Funds
3
Cash conversion = FCF/EBIT

12
Steel performance
•Revenue growth from:
–Roofing volume growth driven by strong residential
market
–Market share gains on strong customer service
performance
–Partly offset by subdued activity in manufacturing and
rural sectors and lower project activity in Reinforcing
•EBIT decline mainly from intense competitive trading
environment and higher steel prices
•New ERP system in Reinforcing and upgrade of roll-forming
capacity in Dimond
•Successful strategy to increase dual supply of raw materials
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
532
555
4%
EBITDA
1
54
38
(30)%
EBIT
1
49
33
(33)%
Trading Cash Flow
5515(73)%
EBIT margin %
9.2%5.9%
(3.3)%pt
ROFE
2
%
27%15%
(12)%pt
Capex
1418
(29)%
Cash Conversion
3
82%(9)%
NM
Easysteelvolumes (t)
+3%+3%
PCC local volumes (t)
-3%+7%
Fletcher Reinforcing
Volumes (t)
-10%-3%
Fletcher Building Full Year Results Presentation | © August 2019
Resi, 25%Com, 36%Infra, 39%
Divisional Exposure
Steel
1
Prior year excluding significant items
2
EBIT/Closing Funds
3
Cash conversion = FCF/EBIT

Concrete
13
Concrete performance
•Solid overall business unit revenue contribution:
–Strong aggregates revenue growth through improved pricing
and volumes from major roading projects
–GBC revenue from strong demand and positive price
achievements offset by cement mill outage
–Steady ready-mix sales with regional variation reflected in
higher Auckland, lower Christchurch from project completion
•EBIT impacted by strong WinstoneAggregates performance
broadly compensated GBC cement mill outage of $7.0m and
depreciation charges
•Cement supply chain improvements with coastal shipping to New
Plymouth, additional barge capacity between Portland-Auckland
•Completion of Auckland airport precinct ready-mix plant boosting
Firth network
•Waikato quarry acquisition now fully integrated into division
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
812
802
(1)%
EBITDA
1
135
134
(1)%
EBIT
1
90
84
(7)%
Trading Cash Flow
1281366%
EBIT margin %
11.1%10.5%
(0.6)%pt
ROFE
2
%
14%13%
(1)%pt
Capex
6265
5%
Cash Conversion
3
74%85%
11%pt
Domestic cement volumes
+4%-2%
Aggregates sales volumes
+6%8%
Ready mix volumes
+2%0%
Fletcher Building Full Year Results Presentation | © August 2019
Resi, 43%Com, 30%Infra, 27%
Divisional Exposure
1
Prior year excluding significant items
2
EBIT/Closing Funds
3
Cash conversion = FCF/EBIT

Residential and Development
14
Residential and Development performance
•Excellent revenue growth with Residential revenue up 13%
to $526m, Land Development up 5% to $113m
•Increased units sold to 755 (735 dwellings and 20 sections)
compared to 714
4
(613 dwellings and 101 sections) in FY18
–Auckland: continued solid demand for homes priced
$600-900k
–Christchurch: strong sales of Atlas Quarter apartments,
higher Awateadevelopment sales, first sales in One
Central precinct
•Settlement times extended in higher price points
•Stable year on year EBIT:
–Residential margins stable with higher proportion of
unit sales in lower margin Christchurch as forecast
–Higher Land Development EBIT from surplus asset sales
–New site, equipment, operating staff recruitment for
newly created Panelisationbusiness
•c5 years’ supply of lots under control, of which 75% are on
balance sheet
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
575
639
11%
EBITDA
136
137
1%
EBIT
1
136
137
1%
Trading Cash Flow
10995(13)%
EBIT margin %
23.7%21.4%
(2.3)%pt
ROFE
2
%
23%21%
(2)%pt
Capex
17
NM
Cash Conversion
3
79%64%
(15)%pt
Residential EBIT
8584
(1)%
Land Development EBIT
5156
10%
PanelisationEBIT
-(3)
NM
1
FY18 EBIT = $130m if restated under IFRS15
2
EBIT/Closing Funds
3
Cash conversion = FCF/EBIT
4
658 units (527 dwellings, 131 sections) if restated under IFRS15
Fletcher Building Full Year Results Presentation | © August 2019

Construction
15
Construction performance
•Increase in revenue reflects strong growth in Major Projects and
BPC offset by lower B+I revenues
•Return to operating profitability but lower Higgins EBIT due to
project completion timing
•At 30 June 2019 backlog of work was $1.4b (of which B+I $0.3b)
compared to $1.8b at 30 June 2018 (of which B+I $0.8b)
reflecting B+I project completion
•Four remaining B+I projects to be completed in 2019, two in
2020
Building a balanced portfolio
•Management team rebuilt
•In June 2019 confirmed intention to recommence focused
bidding in the vertical construction market
•Bids and targeted project portfolios aligned with overall
business risk and appetite
•More medium sized projects, smaller number of larger projects
•Focused on right clients who will accept sensible risk profiles
and margins
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
1,685
1,702
1%
EBITDA
1
(588)
68
NM
EBIT
1
(608)
47
NM
Trading Cash Flow
(172)(210)(22)%
EBIT margin %
(36.1)%2.8%
38.9%pt
Capex
3331
(6)%
Cash Conversion
2
NMNM
NM
B+I EBIT
(660)-
NM
Higgins EBIT
4236
(14)%
Major Projects, Brian Perry Civil,
South Pacific, Divisional costs
EBIT
1011
10%
Fletcher Building Full Year Results Presentation | © August 2019
1
Prior year excluding significant items
2
Cash conversion = FCF/EBIT

Industry context Australia
Sharp declines in residential sector
Source: BIS Oxford Economics (financial years)
Residential Approvals (#)
222k
FY15FY16FY17FY18FY19FFY20F
AU Historical
Value of Commercial and Infrastructure work put in
place (A$b)
FY15FY16FY17FY18FY19FFY20F
37
38
38
464247
112
95
88
106
90
87
231k
239k
150k-160k
232k
185k
Key:ResidentialCommercialInfrastructure
Fletcher Building Full Year Results Presentation | © August 2019
16
Residential
•Division mainly exposed to new detached/semi-detached housing,
plus additions and alterations; accounts for c90% of AU residential
exposure
•Material contraction in forward work: approvals down 20% to c185k
with greatest decline in attached dwellings followed by semi-
detached and detached dwellings
•Falling house prices triggered by affordability issues, credit tightening
and an increase in housing stock
Commercial
•Contracting across most sectors; most states declined, although
recent recovery in non-residential approvals in NSW and QLD
Infrastructure
•Division principally exposed to road, rail, water and coal seam gas
•Work put in place slightly down but commencements improving
particularly in NSW and WA, and in roading and mining

Australia
17
Australia performance
•EBIT impacted by significant residential market decline and
competitive activity
–Higher input costs from resin, fuel and steel with $23m
AUD/USD currency impact not able to be recovered in price
•Comprehensive review, decisive intervention to reset and
strengthen the division with site closures, properties
consolidated, teams restructured, merger of Iplex and Rocla
pipelines businesses
•Targeting $100m gross annual cost-out benefit by FY21, expect
c$15m of this to flow to net EBIT benefit in FY20 with c$50m in
FY21
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
3,076
3,024
(2)%
EBITDA
1
176
119
(32)%
EBIT
1
114
57
(50)%
Trading Cash Flow
14657(61)%
EBIT margin %
3.7%1.9%
(1.8)%pt
ROFE
2
%
6%3%
(3)%pt
Capex
7991
15%
Cash Conversion
3
60%NM
NM
Building Products Aus. EBIT
1
7640
(47)%
Distribution Aus. EBIT
1
138
(38)%
Steel Aus. EBIT
1
2511
(56)%
Divisional costs
-(2)
NM
1
Before significant items
2
EBIT/Closing Funds
3
Cash conversion = FCF/EBIT
Fletcher Building Full Year Results Presentation | © August 2019
Resi, 54%Com, 27%Infra, 19%
Divisional Exposure

Successful divestments ahead of schedule
•Roof Tile Group
−Sold on 1 November 2018
−Final net sale price of NZ$59m to IKO, in line with
expectations
•Formica
−Sold on 3 June 2019
−Final net sale price of NZ$1,191m to Broadview, ahead
of expectations
−Exited at 10.8x FY18 EBITDA, at top end of expectations
−Timely exit from softening of the US market
Formica and Roof Tile Group
18
Financial results
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Gross Revenue
1,1771,019(13)%
External Revenue
1,153999(13)%
EBITDA¹
106106-
EBIT¹
658226%
1
Before significant items
Fletcher Building Full Year Results Presentation | © August 2019
Sale proceeds andloss on disposal
NZ$m
Roof Tile
Group
(completed)
Formica
(completed)Total
Net sale proceeds
591,191
1,250
Less: Carrying Value
771,3131,390
Loss on disposal
18122140

F O C U S
Fletcher Building
Full Year Results Presentation 2019
Agenda
1. ResultsOverview Ross Taylor
2. Divisional Performance Ross Taylor
3. Financial Results Bevan McKenzie
4.Outlook Ross Taylor

Income statement
Return to group profitability following B+I losses
20
All metrics include discontinued operations
NZ$m
June 2018
12 months
June 2019
12 months
Change
$m
Revenue9,4719,307(164)
EBITDA264830566
EBIT before significant items50631581
EBIT margin (%)1%7%6%pt
Significant items(168)(234)(66)
EBIT(118)397515
Funding costs(157)(118)39
Tax96(102)198
Non-controlling interests(11)(13)(2)
Net earnings/(loss)(190)164354
Net earnings/(loss) before significant items(60)367427
Earningsper share (EPS –cents) before significant items(8.1)43.051.1cps
Earningsper share (EPS –cents)(25.5)19.244.7cps
Fletcher Building Full Year Results Presentation | © August 2019

Operating cash flow
Cash flows mainly affected by creditor timing
21
NZ$m
June 2018
12 months
June 2019
12 months
Change
$m
EBIT before significant items from continuing operations631549(82)
Depreciationand amortisation1701744
Provisions,cash impact of significant items and other(47)(65)(18)
Trading cash flow before working capitalmovements from continuing operations754658(96)
Residential and Development(28)(27)1
Construction (ex B+I)35(16)(51)
Debtors(20)2848
Inventories(54)(54)-
Creditors116(37)(153)
Trading cash flow from continuing operations803552(251)
International12114(107)
B+I(285)(257)28
Trading cashflow
1
639309(330)
Cash tax paid(85)(28)57
Interest paid(158)(128)30
Reported cash flows from operatingactivities396153(243)
Free Cash Flow
2
from continuing operations494254(240)
1
Trading cash flow = EBITDA + Change in net working capital + provisions and other adjustments
2
Free Cash Flow = Trading cash flow less capex less cash tax, excluding M+A activities
Fletcher Building Full Year Results Presentation | © August 2019

Operating cash flow
Second half working capital returned to normal as anticipated
22
Fletcher Building Full Year Results Presentation | © August 2019
NZ$m
June 2018
6 months (H2)
June 2019
6 months (H2)
Change
$m
EBIT before significant items from continuing operations356301(55)
Depreciationand amortisation83863
Provisions,cash impact of significant items and other(36)(14)22
Trading cash flow before working capitalmovements from continuing operations403373(30)
Residential and Development(37)239
Construction (ex B+I)391(38)
Debtors(96)(46)50
Inventories(1)3738
Creditors202149(53)
Trading cash flow from continuing operations5105166
International80(20)(100)
B+I(152)(152)-
Trading cashflow
1
438344(94)
Cash tax paid(55)(11)44
Interest paid(97)(66)31
Reported cash flows from operatingactivities286267(19)
Free Cash Flow
2
from continuing operations329327(2)
1
Trading cash flow = EBITDA + Change in net working capital + provisions and other adjustments
2
Free Cash Flow = Trading cash flow less capex less cash tax, excluding M+A activities

Working capital metrics
Sustained improvement in working capital cycle, especially debtors
23
Key working capital metricsDebtor DaysInventory DaysPayables Days
As at
June
2018
As at
June
2019
Change
(days)
As at
June
2018
1
As at
June
2019
Change
(days)
As at
June
2018
As at
June
2019
Change
(days)
Building Products36.334.7(1.6)91.293.72.536.336.40.1
Distribution37.736.9(0.8)43.943.9-41.638.0(3.6)
Steel42.843.30.581.088.97.946.246.60.4
Concrete36.035.7(0.3)36.032.7(3.3)39.841.31.5
Australia47.645.4(2.2)93.694.20.655.757.92.2
Materials and Distribution
Total
42.340.7(1.6)73.774.20.547.447.90.5
Fletcher Building Full Year Results Presentation | © August 2019
1
June 2018 inventory days has been restated to reflect the restatement of cost of goods and selling and marketing expenses as pernote 28 of the financial statements.

(168)
(285)
(257)
(292)
(660)
(257)
FY17FY18FY19FY20F
Cash outflowEBIT lossForecast cash outflow
Cash impact of B+I losses
Forecast provisions unchanged
24
FY17 FY18 FY19 FY20F
•FY19 cash outflows $257m
•Total $257m forecast outflows remaining
Fletcher Building Full Year Results Presentation | © August 2019
Cash flow impact of B+I losses (NZ$m)

Capex and depreciation
Remain within guidance, focused investment in core business
25
NZ$m
June 2018
12 months
June 2019
12 monthsChange
Stay-in-business21424026
Growth9010818
Total Capex30434844
Of which: continuing operations24128544
Acquisitions-2626
Depreciation / Amortisation214199(15)
Of which: continuing operations1701744
Fletcher Building Full Year Results Presentation | © August 2019
181
91
63
13
NZAustraliaInternationalOther
$348m
Capex by Markets (NZ$m)
•FY20 capex expected to be in the range $275-$325m (excl. WWB
plant investment)
•FY20 depreciation & amortisation is expected to be c$200m
(prior to impact of IFRS 16)

26
1,273
325
153
1,288
348
26
68
7
44
281
Opening Net Debt - FY19
Cash flow from operations
Capex
Acquisitions
Divestment
Interim dividend payment
Minority distribution
Closing net debt before hedging/FX
Hedging/FX on debt
Closing net debt
1
Leverage ratio ex B+I excludes B+I impact from EBITDA only
Net debt and leverage
Formica proceeds strengthen leverage metrics
Leverage
(Net Debt/EBITDA)Jun 2018Jun 2019
Target range of 1.5x-2.5x
Group4.8x0.4x
Group ex B+I
1
1.4x0.4x
Fletcher Building Full Year Results Presentation | © August 2019
Net debt (NZ$m)

Debt maturity profile and funding costs
Debt reduction process underway
27
Debt Maturity Profile at Jun-19 (NZ$m)
1
Includes CCIRS component and excludes fair value hedge component
2
Early repayment of NZ$136m of private placements at par in Oct 2018 (original maturity FY27) and NZ$198m in Jun 19 (original maturity Sep 19), repayment of Unlisted capital notes of NZ$50m, purchase of capital
notes of NZ$31m
785
200
100100
16
69
166
150
469
525
400
63
FY20FY21FY22FY23FY24-25FY26+
Capital NotesUSPPBank SyndicateOther
Fletcher Building Full Year Results Presentation | © August 2019
•Undrawn credit lines of $667m and cash of $1,372m
as at 30 June 2019
•Average interest rate on debt is 5.0% (based on
period end borrowings)
•Full year funding costs were $118m (compared to
previous guidance of $125m-$135m)
•All sensible debt reduction opportunities (c$700m-
$800m) will be undertaken, of which $415m already
repaid
2
1

Dividend and share buyback
Final dividend of 15cps, total FY19 dividend of 23cps
Fletcher Building Full Year Results Presentation | © August 2019
28
Share buyback
•With the balance sheet materially de-levered and with
incremental capital available, the Board has resolved to
commence an on-market share buyback of up to
$300m
•This form of shareholder distribution takes into account
tax effectiveness for all shareholders and earnings per
share accretion
•Buyback will commence from 9 September 2019
Dividend
•Final dividend of 15.0 cents per share
•Payment date of Thursday 19 September 2019
•Final dividend unimputed for NZ taxation purposes and
unfranked for Australian taxation purposes
•Dividend Reinvestment Plan will not be operative for this
dividend
•Policy to pay dividends in the range of 50% to 75% of net
earnings before significant items and having regard to
available cash flow
1
remains unchanged
•Interim / Final dividend phasing untypical compared to
prior years due to phasing of FY19 operational cash flows
and Formica proceeds received in the second half
DividendJun 2019
Interim dividend per share8 cents
Final dividend per share15 cents
Total dividend per share23 cents
1
Available cash flow = Free cash flow less cash interest

•Recognises right-of-use asset of $1.4-$1.5b and lease liability of $1.7-$1.8b
•Difference of $0.3b taken as adjustment to retained earnings
IFRS 16
Background and impact
29
Fletcher Building Full Year Results Presentation | © August 2019
•Effective for the group for period commencing 1 July 2019
•Total of c 4,800 operating leases across the Group
Impact on
Balance Sheet
Impact on
Income
Statement
Impact on
Cash Flows
•Operating lease expense now treated as depreciation and interest charges, leading to c$235m
increase in EBITDA and c$50m increase in EBIT
•Small reduction of $15m in NPBT in year one
•No impact on underlying cash flows but new lease arrangement will result in the reclassification of
certain cash flows
•Operating cash flows will increase by the principal payment amount with an offsetting outflow in
financing cash flows

F O C U S
Fletcher Building
Full Year Results Presentation 2019
Agenda
1. ResultsOverview Ross Taylor
2. Divisional Performance Ross Taylor
3. Financial Results Bevan McKenzie
4.Outlook Ross Taylor

Our focus now moves to driving consistent performance
31
1. Refocus on
the NZ core
2. Stabilise
Construction
3. Strengthen
Australia
FY2020
PERFORMANCE
FY2021–23
GROWTH
Fletcher Building Full Year Results Presentation | © August 2019
Complete B+I
projects
Maintain profits
Set-up
for
turn
around
NZ businesses strong and growing
Construction turnaround complete
Performance improvement
Profitable market share

Continued focus on our key enablers and future investment to
drive performance
32
Engaged and capable
people, lean
operating model
Disciplined
performance
improvement and
capital allocation
Strong safety culture
Fit for purpose
systems, next
generation digital
capabilities
High level of
customer intimacy
built through owning
channels to key
segments
Leading innovation
and local adaptation
anchored in
environmental
consciousness
Fletcher Building Full Year Results Presentation | © August 2019

In FY20 we expect ongoing healthy market conditions in NZ and
Australia residential market contraction
33
Fletcher Building Full Year Results Presentation | © August 2019
•Expect Residential consents to ease slightly off peaks, Auckland to remain strong
•Expect Commercial construction to remain at similar levels
•Expect Infrastructure spend to ease in major roading, with increased spend in road safety,
water, and rail
New Zealand Market
Australia Market
•Expect contraction in Residential, forecasting 150k-160k approvals in FY20, however the market
environment remains uncertain
•Expect Commercial market to remain broadly flat
•East Coast Infrastructure work-put-in-place expected to remain broadly flat on established
project pipeline

F O C U S
Fletcher Building
Full Year Results Presentation 2019
Appendix

Appendix
Company overview
35
Revenue: $8.3 billion
People: 16,825
$2,944m
New Zealand
8,843 people
Australia
5,630 people
New Zealand
10,334 people
North America
953 people
Fletcher Building Full Year Results Presentation | © August 2019
South Pacific
861 people
$144m
$5,220m
Continuing External
Revenue
12mth to Jun19 ($m)
Strong New Zealand brands
Australia scale in specific sectors

Summary of FY20 metrics already communicated
Fletcher Building Full Year Results Presentation | © August 2019
36
•Residential and Development: Land development EBIT run rate of c$25m
•Construction: Cash outflows of $257m on B+I
•Australia:
•Targeting $100m gross annual cost-out benefit by FY21; expect c$15m of this to flow to net EBIT benefit in FY20 and
c$50m in FY21
•One-off restructuring costs (significant items) of c$30m
•Corporate costs c$55m
•Capex expected to be in the range of $275-$325m (excl. WWB plant investment)
•Depreciation & amortisation expected to be c$200m (prior to impact of IFRS 16)
•All sensible debt reduction opportunities (c$700m-$800m) will be undertaken across FY19-FY20, of which $415m already
repaid in FY19
•$2.3b gross debt facilities, c$1.1b-$1.2b forecast drawings at Jun-20
•Funding costs expected to be c$80-90m (excluding lease interest costs under IFRS 16)
•Up to $300m on-market share buyback

Industry context
Sectoral exposure, based on revenue
37
1
Based on FY19 total revenue including internal sales. Excludes Formica and RTG and businesses sold or closed during the year *A&A –Additions and Alterations
Revenue Exposure by Sector¹
Residential
(New + A&A)*Commercial
Infrastructure /
OtherTOTAL
NewZealand
10%6%7%23%
Australia
13%5%7%25%
Total Manufacturing
23%11%14%48%
NewZealand
12%4%1%17%
Australia
5%4%0%9%
Total Distribution
17%8%1%26%
New Zealand
6%6%14%26%
Australia
0%0%0%0%
Total Construction
6%6%14%26%
New Zealand Total
28%16%22%66%
Australia Total
18%9%7%34%
Fletcher Building Total
46%25%29%100%
Fletcher Building Full Year Results Presentation | © August 2019

Financial results
Local currency tables
38
GrossrevenueExternal revenue
Revenue
June 2018
12 months
June 2019
12 monthsChange %
June 2018
12 months
June 2019
12 monthsChange %
Residential and Development
New Zealand (NZ$m)
52862518%52862518%
Australia (A$m)
4313(70)%4313(70)%
Construction
New Zealand (NZ$m)
1,5501,5581%1,4761,478NM
Rest of World (US$m)
96971%92975%
Australia
New Zealand (NZ$m)
22NM12100%
Australia (A$m)
2,8342,834NM2,7402,750NM
Rest of World (US$m)
11NM11NM
Formica and Roof Tile Group
New Zealand (NZ$m)
3410(71)%4816(67)%
Rest of World (US$m)
815679(17)%786660(16)%
Fletcher Building Full Year Results Presentation | © August 2019

Financial results
Local currency tables
39
EBIT before significant items
June 2018
12 months
June 2019
12 monthsChange %
Residential and Development
New Zealand (NZ$m)
1211318%
Australia (A$m)
146(57)%
Construction
New Zealand (NZ$m)
(636)20NM
Rest of World (US$m)
2018(10)%
Australia
New Zealand (NZ$m)
11NM
Australia (A$m)
10554(49)%
Rest of World (US$m)
(1)NM
Formica and Roof Tile Group
New Zealand (NZ$m)
33NM
Australia (A$m)
(4)(2)(50)%
Rest of World (US$m)
475517%
Fletcher Building Full Year Results Presentation | © August 2019

New Zealand Residential performance and trends
40
586
149
20
0
100
200
300
400
500
600
700
800
FY10FY 11FY 12FY 13FY 14FY 15FY 16FY 17FY 18FY19
Low/Medium DensityHigh DensitySectionsCommercial
Total
1
658 755
Residential units sold
Distribution of sales prices for FY19 residential sales
19%
20%
36%
17%
8%
17%
19%
48%
14%
2%
Up to
$500k
$500k-
$750k
$750k-
$1,000k
$1,000k-
$1,250k
$1,250k+
FY18FY19
Sales of Auckland houses in $650k -$1m price band
Fletcher Building Full Year Results Presentation | © August 2019
1
Under IFRS 15, to ensure like-for-like comparison
604
651
138
104
195
0
100
200
300
400
500
600
700
800
900
30-Jun-18Lot
purchases
Costs to
develop land
Movements
in working
capital
30-Jun-19
Funds balance
includes:
•3,687 residential
lots for further
development or
sale
•1,735 lots under
unconditional
agreements
Source: REINZ
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Dec-08
Jul-09
Feb-10Sep-10
Apr-11
Nov-11
Jun-12
Jan-13
Aug-13
Mar-14
Oct-14
May-15
Dec-15
Jul-16
Feb-17Sep-17
Apr-18
Nov-18
Jun-19
Rolling 12m sales volumes of houses
$650k
-
$1m
Funds employed $m

Group metrics illustrated for IFRS16
Income statement
41
Continuing operations
NZ$m(unaudited)
June 2019
12 months
Reported
Pro forma
IFRS
Adjustment
June 2019
12 months
Pro forma
Revenue8,308-8,308
EBITDA before significant items723234957
Depreciation and amortisation (incl. lease depreciation charge)(174)(185)(359)
EBIT before significant items54949598
Significant items(94)-(94)
EBIT45549504
Lease interest costs-(64)(64)
Funding costs(116)-(116)
Tax(80)-(80)
Non-controlling interests(13)-(13)
Net earnings246(15)231
Fletcher Building Full Year Results Presentation | © August 2019
Note: The pro forma IFRS adjustments noted in the table are the indicative FY20 adjustments, see note 2 to the Financial
Statements

Group metrics illustrated for IFRS16
Cash flows
42
NZ$m(unaudited)
June 2019
12 months
Reported
Pro forma
IFRS
Adjustment
June 2019
12 months
Pro forma
EBITDA before significant items723234957
Lease principal payments-(169)(169)
Lease interest payments-(64)(64)
Other movements(65)-(65)
Working capital movement(106)-(106)
Trading cash flowfrom continuing operations552-553
International14-14
B+I(257)-(257)
Funding costs paid(128)-(128)
Cash tax(28)-(28)
Lease principal repayments reported in financing-169169
Reported cash flow from operating activities153169323
Fletcher Building Full Year Results Presentation | © August 2019
Note: The pro forma IFRS adjustments noted in the table are the indicative FY20 adjustments, see note 2 to the Financial
Statements

Group metrics illustrated for IFRS16
EBITDA by division
43
Continuing operations before significant items
NZ$m(unaudited)
June 2019
12 months
Reported
Pro forma
IFRS
Adjustment
June 2019
12 months
Pro forma
Building Products13924163
Distribution11447161
Steel381351
Concrete13430164
Residential and Development1372139
Construction682189
Australia11989208
Corporate(26)8(18)
Group723234957
Fletcher Building Full Year Results Presentation | © August 2019
Note: The pro forma IFRS adjustments noted in the table are the indicative FY20 adjustments, see note 2 to the Financial
Statements

Group metrics illustrated for IFRS16
EBIT by division
44
Continuing operations before significant items
NZ$m(unaudited)
June 2019
12 months
Reported
Pro forma
IFRS
Adjustment
June 2019
12 months
Pro forma
Building Products1275132
Distribution10411115
Steel33235
Concrete84589
Residential and Development137-137
Construction47451
Australia572077
Corporate(40)2(38)
Group54949598
Fletcher Building Full Year Results Presentation | © August 2019
Note: The pro forma IFRS adjustments noted in the table are the indicative FY20 adjustments, see note 2 to the Financial
Statements

Important Information
45
This Full Year Results presentation dated 21 August 2019 provides additional comment on the
Annual Report of the same date. As such, it should be read in conjunction with, and subject to, the
explanations and views of future outlook on market conditions, earnings and activities given in that
commentary.
In certain sections of this presentation the Group has chosen to present certain financial
information exclusive of the impact of significant items and/or the results of the Building + Interiors
(B+I) business unit. Where such information is presented, it is clearly described and marked with an
appropriate footnote. This allows the readers of this presentation to better understand the
underlying operations and performance of the Group.
Fletcher Building Full Year Results Presentation | © August 2019

F O C U S
Fletcher Building
Full Year Results to
30 June 2019
ROSS TAYLOR
—Chief Executive Officer
BEVAN MCKENZIE
—Chief Financial Officer
21 August 2019

---

Fletcher Building Limited
Annual Report 2019

Contents
Where we are right now
The Results
contents
This Annual Report is dated 21 August 2019
and is signed on behalf of the Board by:
When used in this annual 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.
All references to financial years (e.g. FY18 and FY19) in this annual report are to the
financial year ended 30 June. References to $ and NZ$ are to New Zealand dollars
unless otherwise stated.
Robert McDonald
Director
Bruce Hassall
Chair
In certain sections of this report the Group has chosen to present certain
financial information exclusive of the impact of Significant Items and/or the
results of the Building + Interiors (B+I) business unit, consistent with previous
market guidance. Where such information is presented, it is clearly described
and marked with an appropriate footnote. This allows the readers of this report
to better understand the underlying operations and performance of the Group.

Results at
a Glance
11.8%
Return on funds
employed (ROFE) before
significant items
(1)
2018 0.9%
(p)
10.9 ppts
$164m
Net earnings/(loss)
2018 $(190)m
$9,307m
Revenue
2018 $9,471m
(p)
2%
2018 0.5%
(p)
6.3 ppts
6.8%
5.0
Safety TRIFR
(2)
2018 5.1
(p)
2%
71%
Employee engagement
2018 70%
(p)
1 ppt
41
Customer NPS
(4)
2018 33
(p)
8 pts
(1)
Measures before significant items are non-GAAP measures used by management to assess the performance of the Group and have been derived
from Fletcher Building Limited’s financial statements for the year ended 30 June 2019.
(2)
Total recordable injury frequency rate. Measured by the total number of recordable injuries per million hours worked.
(3)
CO
2
tonnes for every $1 million of revenue.
(4)
Net Promoter Score is a measure of how satisfied our customers are with our business.
23CPS
Total dividend
2018 nil
$153m
Cash flows from
operating activities
$631m
EBIT before significant items
(1)
2018 $50m
139
Carbon Emission Intensity
(3)
2018 $396m
(p)
61%
2018 149
(p)
10 pts
19.2¢
Earnings per share
2018 (25.5)¢
EBIT margin before
significant items
(1)
Fletcher Building Limited Annual Report 20191

5,000
people across
Australia
+
Where we work
We employ over 16,000 people in New Zealand, Australia and the South Pacific.
$3b
300
+
Revenue
Operating
sites
Australia
Fletcher Building Limited Annual Report 20192

Our people are committed to
working together to deliver for
our customers and to support
our communities.
800
people working on
construction in the
South Pacific
Approx.
Approx.10,000
people across almost every
region of New Zealand
$5b
400
+
Revenue
Operating
sites
New Zealand
Fletcher Building Limited Annual Report 20193

Chair’s
Report
Bruce Hassall, Chair.
Dear Shareholders
DELIVERING ON STRATEGY AND RETURN TO PROFITS
Through the FY19 year, Fletcher Building delivered against all the key
areas of its plans, despite challenges in Australia, and returned the
Group to profitability with net earnings attributable to shareholders
of $164 million compared to a loss of $190 million in the prior year.
We also reinstated dividends and, through the $1.3 billion divestment
of the international businesses, ended the year with a strong balance
sheet with net debt of $325 million.
DIVIDEND AND SHAREHOLDER RETURNS
We are pleased that the Company’s significantly improved earnings
and strong cash flows have enabled the Board to approve a final
dividend for the year ended 30 June 2019 of 15 cents per share
(unimputed and unfranked) to be paid on 19 September 2019.
Combined with the 8 cents per share interim dividend, this brings
the total dividend to 23 cents per share for the FY19 year. The Board
is pleased that we have been able to resume payment of a dividend
and that we can now begin again to reward our many shareholders
who have remained loyal to the Company during a difficult period.
Given the strength of the balance sheet, our confidence in the B+I
provisions and our outlook generally we are also returning up to
$300 million to shareholders through an on-market share buyback.
The buyback will commence following release of the Company’s
full year results.
Fletcher Building Limited Annual Report 20194

HEALTH AND SAFETY
We were very saddened at the tragic deaths of five of our people
during the year. These incidents continue to remind us of the
importance of taking a vigilant approach to safety. The Board has
placed intense scrutiny on health and safety and on improving
safety performance. We will continue to stay focused on this as
management implement a business-wide reset of safety across all of
Fletcher Building.
GOVERNANCE
In September, we welcomed five new independent directors, who
have added valuable expertise, bringing a range of complementary
commercial, operational and governance experience to the Board
skill set. During the year, Board members placed an added emphasis
on getting close to the operating businesses through a greater
number of site tours and meetings with management across the
Group. I am confident the Board has appropriate governance and
oversight of the operations of the Group.
On behalf of my Board colleagues, I would like to express our
appreciation for all the dedication of the Group’s employees during
FY19 and for the resilience and commitment they showed during
one of the most difficult periods in the Company’s history.
I am privileged to have become Fletcher Building’s Chair at a pivotal
point in its long history and I am pleased with the progress we
have made through this year. You can rest assured that I and my
fellow Board members are focused on delivering enhanced value to
all our shareholders and building strong relationships of trust with
our key stakeholders.
ANNUAL SHAREHOLDER MEETING
This year’s Annual Shareholder Meeting will be held in November
2019. We look forward to shareholders taking the opportunity to ask
questions, if they wish.
LOOKING AHEAD
This year, we implemented what was planned and outlined in June
2018 – we stabilised the Group, returned to profits, reinstated
dividends, and focused our activities back on New Zealand and
Australia. This sets us up well to drive strong performance across
all our businesses, in particular, our Australia businesses, in the
coming financial year and as we make further progress on executing
our strategy.


Bruce Hassall
Chair
Fletcher Building Limited Annual Report 20195

CEO’s
Report
Ross Taylor, CEO.
At the beginning of the year we identified three stages to the
repositioning of Fletcher Building; firstly, to stabilise the business
through FY19, then to drive performance through FY20, and from
FY21 onwards drive growth. Through this year we achieved what we
needed to and we remain on track.
It was both pleasing and important to see the business deliver
against our financial goals, albeit Australia was tougher than
expected; and across our key actions through FY19. This
performance however, was somewhat overshadowed by the
fatalities we experienced in our Steel and Construction divisions
which I discuss in more detail later.
Our overarching theme through the year was to get focused and
this was achieved; we successfully sold our Northern Hemisphere
businesses, we stabilised Construction, we made a material
intervention in Australia to set it up for a turnaround, and through all
this stayed focused on our strong core New Zealand businesses.
HEALTH AND SAFETY
We have an unwavering commitment to the health and safety of
our people and those who work with us. We were therefore deeply
saddened that during the year we had five fatalities in our business.
Our focus immediately after these was to support the families, friends
and workmates who were impacted by these tragedies, and to ensure
these would not be repeated. We also engaged more broadly across
government and industry to change standard industry work practices
where appropriate. Beyond this we embarked on a multi-year reset
of our safety programs and approach across the entire business. The
leadership team and I are committed to making Fletcher Building a
consistently safe place where everyone who works with us, returns
home safely to their families each and every day.
Fletcher Building Limited Annual Report 20196

PERFORMANCE
Fletcher Building’s performance in FY19 was solid and importantly
we finished the year within our earnings guidance range. Group EBIT
before significant items was $631 million, compared to $50 million
in the prior year. Significant items of $234 million were incurred
through the divestment of our International businesses and through
restructuring charges taken to reset our Australia division.
Group revenue was $9,307 million, which was slightly down on
FY18, but excluding B+I revenue was slightly higher than the prior
period. Our core New Zealand divisions, including residential,
delivered good results, and despite operating in a highly competitive
environment these businesses maintained strong market positions
and revenues.
The Construction division stabilised and returned to profitability
during FY19, and we continue to remain within the provisions set for
the legacy B+I projects in February 2018. Only six of these projects
remain to be completed, and of these projects only two will extend
into calendar 2020. We announced in June that we would resume
bidding for new vertical construction work and will do so in a very
measured and disciplined way.
A combination of a tough residential market, rising input costs
and poor operating disciplines in some areas saw the Australian
division deliver lower than expected results for the year. That said it
was always identified as a “turnaround” and the team successfully
implemented a decisive intervention through the year to set these
businesses up for profit growth in FY20.
A highlight of the year was the successful sale of the Formica and
Roof Tile Group businesses. These were both completed ahead of
schedule and the proceeds received were above expectations. The
exit of these businesses leaves the Group with a more focused
and manageable footprint and has materially strengthened the
Company’s balance sheet.
CAPITAL MANAGEMENT
We made considerable gains with strengthening the company’s
balance sheet during FY19 and ended the year well below our target
leverage range following the successful sale of Formica for $1.2
billion. This has allowed us to commence a debt reduction program
which will total between $700 million and $800 million across FY19
and FY20.
The Company intends to maintain a prudent balance sheet while our
performance reset continues.
But having taken this into consideration we will return up to $300
million to shareholders by way of an on-market share buyback to
commence following full year results.
Dividend payments were reinstated during FY19 with a total dividend
for the year of 23 cents per share.
EMPLOYEE ENGAGEMENT
Through the year, the benefits of our leaner organisation, greater
communication, and the shift of key skills and overhead into the
operating businesses, started to emerge. We also made good
progress on evolving and improving leadership through all levels of
the company, as well as supporting people with appropriate training
and development.
These changes underpinned a continuing rise in employee
engagement through the year.
CUSTOMER SATISFACTION
Great customer service underpins our business, and in FY19 we
saw an increase in our customer satisfaction measure, reflecting
our focus in this area. We continue to look to have all businesses
performing at top quartile levels on customer satisfaction measures
over the coming few years.
SUSTAINABILITY AND INNOVATION
Our sustainability journey continued to develop in FY19 as we work
to increase the transparency of reporting in this space and move
towards an integrated reporting model.
We are committed to reducing our carbon footprint and are in
the process of setting a science-based target for carbon
emissions reduction.
We have a range of initiatives underway which include the diversion
of up to half of all New Zealand’s used tyres into fuel to be used in
the manufacture of cement, the recycling of plastic waste into the
manufacture of our plastic pipes, and the planned investment in a
new state-of-the-art Winstone Wallboards factory, which will enable
the recycling of used plasterboard and the reduction of carbon
emissions by 15%.
In addition, we are in the final stages of building a scale housing
panelisation factory in Auckland which will facilitate both higher
quality homes and a significant reduction in the average total time of
constructing a home.
OUTLOOK
In New Zealand we expect residential consents to ease slightly
off current peaks, non-residential construction to remain at similar
levels, and infrastructure spend to ease in major roading with a move
to road safety, water, and rail.
And in Australia we expect the contraction in residential to continue,
and the non-residential and East Coast infrastructure market to be
broadly flat.
CONCLUSION
Through FY19 we achieved what we said we would, and this
positions us well to drive performance through FY20.
I thank our shareholders, people, customers and suppliers for
their continued support of Fletcher Building, and I look forward to
updating you on our progress during FY20 and beyond.
Ross Taylor
CEO
Fletcher Building Limited Annual Report 20197

Strategy
1. REFOCUS ON THE NZ CORE
We continue to defend and grow our NZ building materials and
distribution businesses and leverage our position in residential. Our
divisional and business unit leadership teams have evolved as our key
performance criteria are lifted. The NZ businesses continue to benefit
from the elevated market backdrop which has held revenues at high
levels. We have maintained our competitive positions and market
shares throughout the year, however, margins have either held flat
or seen some compression across most businesses. Having dealt
with our other priorities, such as the exit of non-core businesses, we
are well set up to focus on improving operational disciplines through
FY20 and setting ourselves up for margin improvements and growth
in FY21.
2. STABILISE CONSTRUCTION
The Construction division changed significantly during the year
with a strengthened management team and experienced project
teams that are fit for purpose. Meanwhile, governance and risk
management processes have been put in place that now underpin
the operations of each business and the disciplines that are
required for building a balanced portfolio. Pleasingly, the division
returned to profitability during the year. Meanwhile we are making
good progress on closing out the historical B+I projects with six
remaining to be completed and are within the provisions made in
February 2018. As part of our overall positioning of the division, we
intend to recommence focused bidding in the New Zealand vertical
construction market. As well as our own divisional improvement,
bid conditions and margins have become more appropriate, the
overall market outlook is strong and a select client base is keen for
us to re-engage in the sector. Importantly, this ensures we are able
to maintain the current momentum to complete the legacy B+I
projects and provide a future for our people as those projects come
to a close.
3. STRENGTHEN AUSTRALIA
The new divisional structure for FY19 established a single leadership
team for the Australian businesses that is based in-market. While the
division faced significant market headwinds mainly through a sharp
decline in residential markets during FY19, it also had poor operating
disciplines in some of our businesses. Decisive intervention during the
year has resulted in clear business unit priorities being established,
including a cost-out programme and targeted growth investment
to set the business up for performance improvement and growth.
The division has emerged from FY19 with much of this programme
underway. It is targeting $100 million of gross annual cost-out benefit
by FY21 with approximately $50 million of this to flow to net EBIT in
FY21. The Group continues to target the Australia division generating
7% EBIT margins in the medium term.
4. EXIT NON-CORE BUSINESSES
One of the key highlights of FY19 was completing the sale of
both the Formica and Roof Tile Group global businesses ahead of
schedule and for strong valuations. The sale proceeds from these
have resulted in a very strong Group balance sheet and enabled
a number of changes to the Group capital structure, as outlined
throughout this report. The completion of this key focus area leaves
the Group with a more focused and manageable footprint, operating
in the New Zealand and Australian markets.
New Zealand International Convention Centre.
Our vision is to be the undisputed leader in
New Zealand and Australian building solutions
with products and distribution at our core.
Fletcher Building Limited Annual Report 20198

To support our strategy we have made changes to how we work
and are very clear on the enablers of successful execution.
THERE ARE 6 KEY ENABLERS OF OUR STRATEGY:
1. Strong safety culture
2. Engaged and capable people,
with a lean operating model
3. High level of customer
intimacy built through owning
channels to key segments
4. Fit for purpose systems and
next-generation digital capabilities
5. Disciplined performance
improvement and capital allocation
6. Leading innovation and
local adaptation anchored
in environmental
consciousness
Refocus on
the NZ core
Stabilise
Construction
Strengthen
Australia
Exit non-core
businesses
NZ Businesses strong and growing
Complete B+I projects
Return division to profit
Set-up for turnaround
Roof Tile Group and
Formica divested
Construction turnaround complete
Performance improvement
Profitable market share
1.
2.
3.
4.
FY2019
REFOCUS AND STABILISE
FY2021 – 23
GROWTH
FY2020
PERFORMANCE
STRATEGY
TIMEFRAMES
Fletcher Building Limited Annual Report 20199

Sustainability
We want to be the New Zealand and
Australian leader in sustainable building
materials, construction and distribution,
and we’ve set ourselves some ambitious
goals to get there.
Our sustainability strategy focuses on what is most important to our business
and to others - our people, communities, customers, key stakeholders and
investors - and where our actions will lead to meaningful change.
The strategy extends what we have already put in place and deepens
our commitment to our people, sustainable products, carbon emission
reduction initiatives, and transparent reporting. We want our business to
thrive and we are committed to playing our part in a sustainable future.
BE THE LEADER IN MAKING
SUSTAINABLE BUILDING PRODUCTS
SUPPORT OUR PEOPLE
AND OUR COMMUNITIES
TRANSPARENT ENVIRONMENTAL,
SOCIAL AND GOVERNANCE REPORTING
PARTNER WITH OUR SUPPLY CHAIN TO
DELIVER SUSTAINABLE OUTCOMES
CAREFUL MANAGEMENT OF OUR
RESOURCES AND EMISSIONS
BUILD HEALTHY HOMES AND DELIVER
SUSTAINABLE INFRASTRUCTURE
OUR KEY AIMS
Fletcher Building Limited Annual Report 201910

LONG TERM GOALS
–Best practice safety
–Certified sustainable products and innovative new solutions
–Recognised as a diverse, inclusive and equitable place to work
–Leading sustainability ratings for what we build
–Carbon emissions reduced – in line with limiting global warming
to below 2°C
–Supply chain risks reduced
–Achieving global benchmark performance
SIGNIFICANT INITIATIVES IN FY20
–Protect safety reset
–Reduce the environmental footprint of our products
–Gender pay parity plan in place
–Group science-based target for reducing our carbon emissions,
water and waste reduction plans in place
–Implement supply chain Code of Conduct
–Move to full Environment, Social and Governance reporting
OUR MATERIAL ISSUES
Our material issues are the areas where we have the biggest impact and the most influence.
Sustainability aimsMaterial issueDivisions with most impact
Be the leader in making
sustainable building products
–The environmental footprint of our products
–Customer engagement
Building Products and Steel, Distribution,
Concrete, Australia
Support our people and
our communities
–The health, safety and wellbeing of our
people and supply chain
–Our people and culture
–Our role as a large employer
Corporate, Building Products and Steel,
Distribution, Concrete, Construction, Australia,
Residential and Development
Build healthy homes
and deliver sustainable
infrastructure
–The impact of our construction operations
–Customer engagement
Building Products and Steel, Distribution,
Concrete, Construction, Australia, Residential
and Development
Careful management of our
resources and emissions
–The resources we use as a large
manufacturer - energy, water and materials
- and our impact on those resources
Building Products and Steel, Distribution,
Concrete, Construction, Australia, Residential
and Development
Partner with our supply
chain to deliver
sustainable outcomes
–Our supply chain
–Marketing and communications
–How we work with government and with
industry partners
Corporate, Building Products and Steel,
Distribution, Concrete, Construction, Australia,
Residential and Development
Transparent environmental,
social and governance
reporting
–Our governance structures and risk
management, including supply chain
–Financial performance and return to
our shareholders
Corporate
SUSTAINABLE DEVELOPMENT GOALS
The Sustainable Development Goals are a global set of goals
adopted by New Zealand, Australia and all United Nations
member states that support strategies to improve health and
education, reduce inequality, and spur economic growth while
tackling climate change and working to preserve our oceans and
forests. Fletcher Building’s sustainability key aims support the
following eight United Nations Sustainable Development Goals.
Fletcher Building Limited Annual Report 201911

Health
and Safety
Tragically, in FY19 we had five fatalities within our business. Two
occurred in our Steel division and three in our Higgins business in a
single roading incident. Each of these tragedies had significant and
everlasting impacts on their whanau, friends, our people and the
communities in which we work.
Our priority during these times is firstly to the whanau and to our
colleagues who are so deeply affected by these losses. Our second
priority is to investigate and understand these events, so we learn
from them and prevent them from ever happening again.
Over the past two years, we have dedicated a lot of time, energy
and resource in building our health and safety framework, Protect,
and implementing our online software solution, Radar, to record
and monitor our health and safety performance. During this
period, we experienced a reduction in our Total Recordable Injury
Frequency Rate (TRIFR) from 6.9 (FY17) to 5.0 (FY19). We also
experienced a reduction in serious injuries from 33 (FY17) to
20 (FY19).
While our overall health and safety performance appeared to be
improving in the past few years, the loss of five of our colleagues
this year is clearly a call for action. As expressed by our leadership
team, we will learn from this, and we will use it to help us drive
safety improvements across all of Fletcher Building. Nothing in
Fletcher Building is more important than getting everyone home
safely each and every day.
We are partnering with a leading international organisation to
review Protect in FY20 with a goal to either accelerate, eliminate,
refine or supplement the programme in order to drive the required
culture, discipline and approach that will improve the safety of
our workplaces.
Our internal employee survey shows we have strong safety values
which can serve as a foundation to build from as part of the
Protect reset. In FY19, 88% of employees said that their managers
regularly reinforce safety behaviours, and 83% said their managers
care about their wellbeing.
In alignment with our Protect tohu, the Protect reset will honour
our past (nga wa
-
o mua), the stories of our people and the good
work done. It will also embrace the views of our present-day
operations and people (i tenei wa
-
) through a Fletcher Building
wide survey and deep dive into the culture, system and risk
assessments in each of our divisions. The goal of the Protect reset
will be to create a sustainable framework and future aspiration (tu
-
manako) where all our people are free from harm.
We are committed to providing a healthy and
safe workplace for everyone who works with us
at Fletcher Building. We believe that everyone
deserves to be protected from harm. To help
us get there we are constantly looking at what
we’re doing that’s working, what’s not working
and where we can do better.
Protect is our safety framework that sets a
consistent environment, health and safety standard
across the business. In FY19, the Protect brand was
updated with a tohu, which was offered to Fletcher
Building by the Whakatupu leadership development
programme initiative. The tohu brings mana and
whakapapa to Protect in a uniquely Māori context.
Tupuna (Ancestor)
Represents our founder
Sir James Fletcher I
Nga wā o mua (Our past)
Represents our past
operations and people
Tūkotahi (Unity)
Our newest value
"Better Together"
I tenei wā (Present day)
Represents our present
operations and people
Tūmanako (Aspiration)
Represents our future
operations and people
Fletcher Building Limited Annual Report 201912

Improving the safety of
temporary works
Fletcher Construction is proud to have
been instrumental in the establishment of
an industry forum for Temporary Works
(Temporary Works Forum NZ) and the
publication of New Zealand’s first ever
Temporary Works Good Practice Guide.
Temporary works are any structure on
site that allow or enable, but are not part
of, the permanent structure. They are
typically removed afterwards, but not
always. Scaffolding and trench supports
are all examples of temporary works.
In 2016, a Fletcher Construction worker
suffered a serious leg fracture when a
temporary block wall collapsed. This
prompted a review within the business
and an Enforceable Undertaking
agreement with WorkSafe.
The review included local industry
practices as well as international best
practice towards the procedural control
of temporary works. As a result, the
industry established a forum and
standardised guidelines were published.
Fletcher Construction worked with
Engineering NZ and Structural Engineering
Society New Zealand (SESOC) to support
the industry forum, to develop the
guidelines and train hundreds of staff and
industry professionals.
TWfNZ GPG01:19 Temporary Works:
Procedural Control GPG was published in
May 2019. Industry feedback has been
overwhelmingly positive.
5.0
FY18: 5.1
FY19
Total Recordable Injury
Frequency Rate (TRIFR)
0.34
FY18: 0.33
FY19
Serious Injury
Frequency Rate
FY15
6.4
6.7
6.9
5.1
5.0
FY16
TRIFR
(1)
FY17FY18FY19
FY15
22
25
33
2120
FY16
Serious Injuries
(2)
FY17FY18FY19
(1)
Total recordable injury frequency rate. Measured by the total number of recordable injuries per
million hours worked.
(2)
Serious Injury includes immediate treatment as an in-patient at hospital for more than 24 hours
or immediate treatment for a serious injury or illness as defined by Safe Work Australia.
CASE STUDY
WELLBEING
As part of our five year strategic plan, we are increasing our focus on the
personal health and wellbeing of our people, recognising the two-way
relationship between work and personal health.
In FY19, we appointed a Group Health and Wellbeing Manager to develop a
strategic and holistic approach to wellbeing, manage our health exposures
and to drive injury management good practices throughout our businesses.
In FY20, our focus will be on aligning our support and management
practices across all of our businesses for injury and illness management to
help ensure our people are supported and cared for in a consistent manner
following work and non-work related injuries or illnesses.
Our primary health exposures across our businesses are related to silica,
noise and asbestos. All of these risks have the potential to cause long term
damage to the health of those people exposed to them. In FY20, health
and exposure monitoring programmes will be used to drive continual
improvement across our businesses for both mitigation methods and
monitoring of the long-term health of our people and those affected by our
work and our products.
We also recognise that the mental and physical health of our people
can have a significant impact on the safety of our sites as well as the
environment in which we work. In FY20, we will be concentrating on the
health and fitness of our people who are in safety critical roles. In addition,
we plan on improving mental health awareness across our businesses.
Fletcher Building Limited Annual Report 201913

People and
Communities
EMPLOYEE ENGAGEMENT
This year’s employee engagement survey FBuSay results showed
steady high-levels of engagement across the company. We once
again achieved an exceptionally high participation rate – 91%
compared with 92% in FY18. Participation this high tells us our
people are invested in how we are doing as a company and they
want to contribute to this.
In fact, 78% of respondents feel their work gives them a
feeling of personal accomplishment and are proud to work for
Fletcher Building.
Our overall Group engagement score was 71% compared with 70%
last year, which is on par with our industry (a composite of retail,
manufacturing and construction).
DIVERSITY AND PEOPLE DEVELOPMENT
The effort we are putting into driving greater diversity in all parts of
our business continues.
We were extremely proud of our Fletcher Building Pride network's
influence both within the Company and externally. Fletcher Building
Pride won the Employee Network of the year at the New Zealand
LGBTI awards in November 2018. Allan Lennie our former Fletcher
Building Pride Chair bravely shared his experience of workplace
bullying to encourage others to speak up and get help. He is a
champion for change and passionate about ensuring the influence
of the network reaches the wider business. In March 2019, he
was recognised for his leadership when he won the Rainbow Tick
Ambassadorship Award at the inaugural Rainbow Excellence Awards.
The launch of our five year strategy just over a
year ago was an exciting time for our people,
but it was also a time of change. One of the
key enablers identified as critical to delivering
our strategy was continuing to increase the
engagement and capability of our people.
We remained focused on this, while
delivering for our customers and looking
after our communities.
In previous years, activities around Auckland have been the Group’s
focus. This year we spent more time in the regions. Fletcher Building
took part in the Wellington Pride parade, and the Concrete division
launched seven permanent rainbow trucks. The drivers of these trucks
are proud of the inclusive message the colourful trucks send as they
go about delivering to their customers throughout the country.
But it's not just about the big events and initiatives, small genuine
gestures are important too. Our focus on inclusion and diversity
begins when we first start talking to job candidates. We have been
a Rainbow Tick organisation since 2015, and we were the first
building materials and construction company to receive the Tick.
This Tick is an important symbol of what we have achieved, but also
a reminder to walk the talk each day. We held our first Rainbow Tick
breakfast in Christchurch this year in partnership with BNZ, with
over 70 people attending.
Winstone Aggregates new rainbow branded aggregate tippers.
Fletcher Building Limited Annual Report 201914

14,000
Across our business around 20% of our employees are women. We
continue to provide targeted development opportunities for high
performing women, are a principal supporter of Global Women, and
are also working on practical ways to expose more of our women to
the opportunities and career progression in our exciting industries.
In 2018, Tradelink launched its Women in Plumbing initiative to
promote Tradelink as an employer of choice for women. It promotes
mentoring, career opportunities, and has created an increased
awareness in the market of its support of women in the workplace.
The initiative has received outstanding feedback from the Plumbing
Merchant Association of Australia and most recently, 25% of new
Tradelink recruits have been women, exceeding the target of 20%.
In another new initiative for our business, Fletcher Living teamed
up with ELE Group and Connexis to co-host a Girls with Hi Vis
®

event at Fletcher Living’s South Auckland Waiata Shores residential
development. The event gave around 60 women a taste of what a
career in construction or infrastructure is like.
Another of our priorities is investing in youth. A development
programme which we are particularly proud of is Connect, an
innovative development and pastoral care programme designed
to support youth in the transition from high school, vocational
education or unemployment into the workforce. In FY19, we had
34 people graduate from the programme. Feedback has been
extremely positive, with managers saying that Connect graduates
show improved time management, proactivity and confidence.
Our Whakatupu Programme which aims to support Ma
-
ori into
leadership roles had 54 participants this year. The programme is well
respected and integrated within our business having been in place
since 2016.
To encourage the future generation of engineers, Easysteel Hawke’s
Bay and Patton Engineering joined forces with Hastings Boys High
School to establish a pre-apprenticeship programme. The programme
provides year 12 and 13 students a chance at a hands-on programme
of engineering skills development. Easysteel also worked with
supplier Weldwell to secure resources for the programme.
We continued our support with First Foundation providing work
experience and mentoring for high-potential students from low-decile
secondary schools.
LEADERSHIP, SKILLS AND TRAINING
In FY19, approximately 14,000 of our people undertook more than
118,000 hours of learning through our training courses. This included
more than 77,000 hours on Protect safety by over 11,000 employees,
and approximately 26,000 hours of leadership training by over 1,200
existing and potential leaders and managers. Feedback on training
was very positive with an overall 92% approval rating by participants.
We continue to focus on the identification and development of
talent, leveraging our world-class leadership programmes to grow
emerging leaders through to future general managers. In FY19, we
successfully piloted an online learning solution for senior leaders,
ExecOnline, which offers a suite of world-class short online learning
programmes, delivered in conjunction with leading international
universities including Stanford and Harvard.
In FY19, approximately
We value our people and their families, and we
build a stronger team by spending time together.
This is just one way to live our Better Together
value and be one Fletcher Building Team.
employees undertook over
118,000
hours of learning through our
training courses.
Fletcher Building Connect programme graduation.
Fletcher Building Limited Annual Report 201915

Our people also have access to financial support through the
Employee Education and Employee Welfare Funds. Between
1 April 2018 and 31 March 2019, the Education Fund assisted 570
employees and dependants with further education and tuition and
a further 145 dependants with development initiatives, such as
Outward Bound.
The Welfare Fund funds the provision of Employee Assistance
Programme (EAP) Services as well as many health and wellbeing
initiatives across the New Zealand business, and supports New
Zealand employees and their families in the event of death, disability
or financial hardship resulting from unexpected medical events.
Between 1 April 2018 and 31 March 2019, the Welfare Fund provided
over $360,000 towards these initiatives.
We sincerely thank the Fletcher Trusts, the Welfare and Education
Funds, for their contribution to making our events possible, as well
as the significant additional opportunities and support they provide
our people.
OUR COMMUNITIES
We are driven to have a positive impact on the world around us and
be a good neighbour.
How we contribute to our communities and work with our
stakeholders takes different forms for each of our businesses and
projects. This can range from local working bees, to residential
development open days, to more formal Memorandums
of Understanding.
Fletcher Living believes that a diverse, connected community
makes a healthy community, and because of this works to provide
a range of housing in its developments. For example, the Ko
-
whai
Ridge development in Massey, Auckland is a joint venture with Nga
-
ti
Wha
-
tua Ora
-
kei. Ko
-
whai Ridge will add 197 much needed homes to
the Auckland housing market. When it is finished, 58 of these will
be bought by community housing providers Vision West, Accessible
Properties, and CORT. The development models the future of
housing on government land on a mixed tenure basis.
Another example of Fletcher Living making a positive impact
on communities is through its $1 million One Central activation
programme in Christchurch. Fletcher Living is bringing people back
into the central city with exciting community activities including
a hammock forest for the public to enjoy a quiet moment to
themselves or socialise with others in natural surroundings, and
most recently the Instagram-able #chchswing, a pair of giant swings.
Golden Bay Cement and Winstone Aggregates have built a strong
relationship with Te Pouwhenua o Tiakiriri Kukupa Trust, which
represents the hapu and iwi in the southern Whangarei region. This
has been strengthened with a formal relationship agreement, which
provides a pathway for the on-going operations of the businesses
while also supporting the long-term aspirations of Powhenua.
A standout project for Fletcher Construction South Pacific has been
the redevelopment of Gordons Market in Papua New Guinea’s
capital, Port Moresby. Part of the UN Women's Safe City for
Women and Girls programme, the basis for the PGK30 million
EXCELLENCE AWARDS
Fletcher Building’s Excellence Awards, which are a much-anticipated
celebration of success within our business, were held in March 2019.
An initial list of more than 230 entries was whittled down to eleven
winners, with Ross Taylor acknowledging the outstanding calibre of
entries from all parts of the company.
Fletcher Living’s Beachlands team took out the top award for truly
living by our purpose and values, having achieved outstanding
customer results with a Net Promoter Score of 93.
OUR EVENTS FOR EMPLOYEES AND FAMILIES
A special part of being an employee at Fletcher Building is the
company-wide events we hold, many of which extend to include
employees’ families.
In FY19, 13,000 of our people and their families took part in Fletcher
Building events, an increase of around 3,000 from FY18 reflecting a
concerted effort to make events more accessible to our people in the
regions. This is just one way we live our Better Together value.
Winner of the Outstanding Emerging Leader Award, Olivia Kathan from PlaceMakers.
Switch Up, our online recruitment platform has successfully placed
54 people into a range of our businesses. The no CV–required
approach shows how screening for attitude and work ethic is a
particularly effective recruitment method for young people coming
into our business from school or unemployment.
A unique programme PlaceMakers Auckland Frame and Truss is
involved in is at the training and production plant within the Auckland
South Corrections Facility in South Auckland. The plant provides
training for select inmates who are working towards release, in the
manufacture of timber framing. This project makes a real difference
by giving inmates a career path after release for employment within
the PlaceMakers plant, and providing an additional supply for the
Auckland housing market.
Fletcher Building Limited Annual Report 201916

Women in Science, Tech,
Engineering and Mathematics
This year the Fletcher Building careers team ran a
first-of-its-kind Women in Science, Technology,
Engineering, and Maths evening as part of the
University’s STEM Careers Expo in May. Five
women from manager to new graduate level
spoke to around 100 soon-to-be graduates to
break down myths and showcase engineering,
construction, and IT as great career paths for
women. We are aiming to increase the number
of female applicants for our graduate and
intern programmes. Alongside this, when the
graduate recruitment website was redesigned,
we intentionally included more videos featuring
women. We were pleased to see the number of
female applicants for our Graduate Programme
increase this year particularly for engineering
and IT.
Ofa Halatanu from Brian Perry Civil says she
loves the friendly construction site environment
where everyone looks out for one another. She
believes more women would join the industry if
they were encouraged at school.
I discovered engineering late in
school, sometimes people just
assume girls aren’t interested in it.
We are once we're exposed to it!
CASE STUDY
design and build project, was to provide a safe and clean working
environment for women. The market, which is the Pacific’s largest,
was opened by New Zealand Prime Minister Jacinda Ardern in
December 2018.
Laminex Australia has recently partnered with Habitat for Humanity
Australia to help vulnerable families. The team ran a pilot project
in Yea, Victoria and there are plans to get involved throughout
Australia in the future.
In April 2019, PlaceMakers launched the PlaceMakers Foundation.
The foundation plans to make a lasting difference from offering a
helping hand to local community groups to bringing major projects to
fruition. The first recipient was a three-year old Dunedin boy raising
money for much-needed surgery which will allow him to walk. He
received the proceeds from the sale of two container homes built by
local tradesmen funded by a Working Bee Grant.
PlaceMakers was the principal partner of the prostate cancer
national awareness month Blue September for its eighth year in a
row bringing the total amount raised to $2.1 million for this worthy
cause. Mico continued its partnership with Make a Wish for a second
year delivering and contributing to seven wishes in FY19, and raising
over $35,000 as well as producing additional labour and materials.
As a Group we contribute a significant amount of money, time
and resources to a wide variety of causes and projects. The total
amount donated to various initiatives and organisations in FY19
was $2 million on top of the other discretionary donations made
by our businesses. Some of the charities we support include Give
a Kid a Blanket, Shine, Auckland City Mission, and following the
tragic events in Christchurch in March 2019, Fletcher Building
donated $100,000.
#chchswing at Fletcher Living One Central, Christchurch.
Fletcher Building Limited Annual Report 201917

Environment
SUSTAINABLE BUILDING MATERIALS AND CONSTRUCTION
We believe in making sustainable products and being transparent
with our customers about our products and their impact.
A number of our businesses have improved the sustainability of their
products and operations this year:
–Iplex New Zealand introduced recycled polyethylene into its land
drainage pipes, with the potential to reuse more than four million
plastic bottles per year.
–Oliveri significantly changed its packaging and have achieved zero
waste to landfill. They are rated as “beyond best practice” by the
Australian Packaging Covenant Organisation.
–The Construction division is working with its clients and
construction partners on sustainability rated projects, including
the Pu
-
hoi to Warkworth Expressway, Peka Peka to O
-
taki
Expressway and Commercial Bay.
Fletcher Living is committed to creating thriving communities and
building healthy homes for its customers. Homes are designed
and delivered with sustainable and energy saving features. It is
becoming more common for us to include sustainability rated
home certifications as part of our developments when partnering
with other organisations and agencies.
Within our construction projects and residential developments,
we are innovating and looking for opportunities to reduce our
environmental impact. This includes managing our impact on
natural resources, local habitats and biodiversity, reducing
emissions and waste, removing any hazardous materials and
managing water use and energy consumption. In the Construction
division recent innovations include increasing the use of biofuels
and hybrid machinery for earthworks, which has supported efforts
to reduce emissions.
Our innovation and sustainability teams continue to work alongside
our businesses to support the development of new or more efficient
products and services.
CARBON EMISSIONS
Addressing climate change is one of the biggest challenges we
face globally. We recognise that as an organisation we have a part
to play in preventing climate change, and for this reason we have
committed to achieving a 30% reduction in our Scope 1 (direct) and
Scope 2 (indirect) emissions by 2030. The target is in alignment
with the Paris Accord and based on maintaining the global
temperature rise to well below 2
o
C.
Our target is currently being verified by the Science Based Targets
initiative, a well-recognised international third-party verification body.
Fletcher Building recognises its opportunity
to make a significant and positive impact on
environmental sustainability within our industries.
To achieve sustainable building solutions, we are
looking at our whole operation as well as how we
work with our supply chain.
Golden Bay Cement.
Fletcher Building Limited Annual Report 201918

Environmental transparency
Fletcher Building is making it easier for
designers, architects and their customers to
understand the environmental performance of
our products.
We have now voluntarily published nine
Environmental Product Declarations (EPDs),
and more than any other company in
New Zealand.
EPDs are leading practice in environmental
transparency – they are independently verified
documents that detail the environmental impact
of a product over its full life cycle.
This year we published EPD's for pre-
painted metal products by Pacific Coilcoaters,
Pink
®
Batts
®
by Tasman Insulation, and cement
products by Golden Bay Cement, which are the
first EPDs for cement in Australasia.
As part of setting this new carbon emissions standard we undertook
an external audit of our FY18 carbon emissions data. This included all
businesses in New Zealand and Australia.
The review highlighted that carbon emissions had been significantly
overestimated in our previous reporting. The errors were principally
due to double-counting of some major emission sources. Corrected
FY17 and FY18 emissions are included in this report. FY18 emissions
for the group were 1,418,093 t CO
2
e (1,238,380 t CO
2
e excluding the
International Division).
We are implementing the internationally recognised standard for
greenhouse gas accounting (ISO 14064-1) to report and audit our
carbon data.
Our increased emissions from FY17 to FY18 were primarily due
to the inclusion of Higgins acquired in FY17 in our reporting and
reduced availability of biomass for Golden Bay Cement which caused
higher consumption of coal as a fuel.
CASE STUDY
Pink
®
Batts
®
are made from recycled glass and
the packaging is also recyclable.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
FY18FY17FY16FY15FY14
Emissions (tCO
2
e)
FY19
FY18FY17FY16FY15FY14
FY19
200
175
150
125
100
Intensity (tCO
2
e/$M)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
FY18FY17FY16FY15FY14
Emissions (tCO
2
e)
FY19
FY18FY17FY16FY15FY14
FY19
200
175
150
125
100
Intensity (tCO
2
e/$M)
Emissions excluding Formica and Roof Tile Group
Formica and Roof Tile Group Emissions
Emissions intensity
Combined scope 1 and 2 carbon emissions
Fletcher Building Limited Annual Report 201919

FY19 emissions were 8% lower than FY18, with 1,298,266 t CO
2
e
being produced (1,146,788 t CO
2
e excluding the international
division). The decrease was largely due to a production outage at
Golden Bay Cement and reduced fuel and energy usage in our
Australian businesses.
We expect emissions from Golden Bay Cement to increase in the
short term as production returns to normal levels. However, we have
a number of emission reduction initiatives planned for FY20 and
beyond. Golden Bay Cement is progressing well with its alternative
fuels strategy. The project to introduce tyre-derived fuel is on track
with plant equipment planned to be installed and commissioned
during the first half of the 2020 calendar year.
The project will substitute 20% of Golden Bay Cement's coal use with
up to 3.1 million shredded tyres per annum, which is up to half of New
Zealand’s annual waste tyres, excluding stockpile. It will also reduce
Golden Bay Cement's use of iron sand by 5,000 tonnes or 40%.
We have a number of other carbon reduction initiatives planned,
including opportunities to use cogeneration energy at Laminex
Australia’s Gympie site. Tradelink is monitoring and reducing
electricity usage at their highest usage branches. Fletcher Steel and
our Humes business have developed carbon reduction road maps
and in FY20 all of our business units will be developing reduction
plans in line with our carbon targets.
WATER
Water is essential to our operations, and we recognise our
responsibility to sustainably manage what we use and discharge.
Many of our businesses incorporate water management systems
into their operations, including internal water recycling loops and
catchment equipment for harvesting rainwater. Firth, Winstone
Aggregates, PlaceMakers and Pacific Coilcoaters have all implemented
water management improvements this year. Meanwhile Laminex
Australia, has reduced water taken from bores at its Dardanup site
from 120,000 kilolitres to 48,000 kilolitres per year.
As part of our construction project planning, we work to preserve
natural waterways and make sure that we have extensive erosion
and sediment controls in place.
Over the next year we will improve the quantity and quality of data
that we collect on water consumption and discharge across the
Group. This will enable us to have oversight and focus on further
decreasing our water footprint.
Iplex NZ recycled plastic bottles.
Fletcher Building Limited Annual Report 201920

Protecting our endangered birds
When Fletcher Living’s Health and Safety Manager,
spotted a few small birds on their Hobsonville
Point development site during a pre-construction
walk, she set in flight a process that has led
Fletcher Living to help save New Zealand’s
endangered North Island dotterel population.
Dotterels nest in open sites, typically sand or
gravel banks and sandbars close to beaches and
lagoons. The Fletcher Living site ticked all the
boxes for a great nesting location.
Not wanting to take any chances with a protected
national taonga, Fletcher Living paired up with
ecologists and the Department of Conservation
to safeguard the birds while enabling work to
continue on adjacent areas of the site.
Deterrent measures were also put in place to
encourage the dotterels to take up residence in a
safer, more remote area of the site.
The dotterels have so far raised five chicks from a
cordoned off area of the site.
WASTE
Waste is an area of increased scrutiny across the business. In
FY19, we worked closely with our key waste service providers to
improve our data and performance. Through better understanding
of our waste footprint we can develop specific waste reduction
strategies. We are looking at circular economy principles to
find ways we can use waste from one process or business as
an input in to another. Some of our businesses have already
achieved a significant reduction in waste to landfill, for example,
Fletcher Living, which is currently on target to divert over 70% of
its waste. Oliveri and Iplex NZ stand out for having achieved zero
waste to landfill. Fletcher Building's target is to divert more than
30% of our waste from landfill by FY23.
LAND AND BIODIVERSITY
Maintaining and protecting local habitats and biodiversity
is important to us, our clients and our communities. From
protecting native bats, snails and birds to restoring wetlands and
tree planting, our teams continue to ensure conservation is at the
heart of what we do.
CASE STUDY
Together we carried out
comprehensive grid searches to
find and protect all the nests. Then
exclusion zones were established
around the nests, complete with
fencing and signage that made it
easy for workers to identify and
avoid the dotterels.
– Project Manager Ross Kendrick.
30/30
30% reduction of carbon
emissions by 2030
Dotterel eggs
Oliveri.
Fletcher Building Limited Annual Report 201921

Group Performance
Reported results
Year ended
June 2019
NZ$M
Year ended
June 2018
NZ$MChange %
Total revenue 9,307 9,471 (2%)
EBIT before significant items
(1)
631 50NM
Significant items
(2)
(234)(168)39%
EBIT397(118)NM
Funding costs(118)(157)25%
Earnings/(loss) before tax279(275)NM
Tax (expense)/benefit(102)96NM
Earnings/(loss) after tax177(179)NM
Non-controlling interests(13)(11)(18%)
Net earnings/(loss)164(190)NM

Basic earnings per share (cents)19.2(25.5)NM
Basic earnings per share before significant items (cents)43.0(8.1)NM
Dividends declared per share (cents)23.0 0.0 23.0
Cash flows from operating activities153 396 (61%)
Capital expenditure 348 304 14%
Revenue
Year ended
June 2019
NZ$M
Year ended
June 2018
NZ$MChange %
Building Products759764(1%)
Distribution1,5961,5304%
Steel5555324%
Concrete802812(1%)
Residential and Development63957511 %
Construction1,7021,6851%
Australia3,0243,076(2%)
Other11838%
Continuing operations9,088 8,9821%
Discontinued operations1,0191,285(21%)
Less: intercompany revenue(800)(796)1%
Group external revenue9,307 9,471(2%)
(1)
Measures before significant items (and B+I) are non-GAAP measures used by management to assess the performance of the Group and has been derived from Fletcher Building Limited’s
financial statements for the year ended 30 June 2019.
(2)
Significant items relate principally to losses recognised on disposal of businesses during the year and restructuring charges recognised. Further details of significant items can be found in
note 2 of the financial statements.
Fletcher Building Limited Annual Report 201922

$
127m
$
137m
$
104m
$
47m
$
33m
$
57m
$
84m
Reported operating earnings
Operating earnings before
significant items and B+I
Year ended
June 2019
NZ$M
Year ended
June 2018
NZ$M
Change
%
Year ended
June 2019
NZ$M
Year ended
June 2018
NZ$M
Change
%
Building Products117 132(11%)127 132(4%)
Distribution104 1013%104 1040%
Steel33 41(20%)33 49(33%)
Concrete84 7315%84 90(7%)
Residential and Development137 1361%137 1361%
Construction47 (613)NM47 52(10%)
Australia(21)65(134%)57 114(50%)
Corporate(46)( 111 )59%(40)(45)11 %
Continuing operations455 (176)NM549 632 (13%)
Formica and Roof Tile Group(58)8NM82 6526%
Divested businesses50(100%)13(100%)
Total397 (118)NM631 710 (11%)
Funding costs(118)(157)25%(118)(157)25%
Earnings/(loss) before tax279 (275)NM513 553(7%)
Tax (expense)/benefit(102)96NM(133)(127)(5%)
Earnings/(loss) after tax177 (179)NM380 426(11%)
Non-controlling interests(13)(11)(18%)(13)(11)(18%)
Net earnings/(loss)164 (190)NM367 415(12%)
Building Products
EBIT* 2019
Residential and
Development
EBIT 2019
Distribution
EBIT 2019
Construction
EBIT 2019
Steel
EBIT 2019
Australia
EBIT* 2019
Concrete
EBIT 2019
EBIT 2018 $132m
(p)
4%
EBIT 2018 $136m
(p)
1%
EBIT* 2018 $104m
(p)
0%
EBIT
+
2018 $52m
(p)
10%
EBIT* 2018 $49m
(p)
33%
EBIT* 2018 $114m
(p)
50%
EBIT* 2018 $90m
(p)
7%
* Before significant items.
+
Before significant items and the impact of the B+I business unit.
Fletcher Building Limited Annual Report 201923

Group Overview
External revenue of $9,307 million was $164
million or 2% lower than the prior year, and
excluding B+I revenue was 1% higher than the
prior period. Operating earnings before significant
items were $631 million and were within the
Group’s guidance range of $620 - $650 million.
This compares to $710 million in the prior year which excluded the
Building + Interiors (B+I) business unit losses and included a full year
of trading for the Formica and Roof Tile Group (RTG) businesses. The
Group returned to profit in FY19 with net earnings of $164 million
compared to a loss of $190 million in the prior year.
In the New Zealand businesses, gross revenue (excluding B+I) grew
by 3%, while operating earnings (excluding B+I) before significant
items declined by $31 million or 6% compared to the prior year.
Market activity levels were generally steady compared to the
prior period, with businesses benefiting from the ongoing strong
residential consents, especially in Auckland. Notwithstanding the
strong activity levels, the New Zealand market remained highly
competitive across all sectors.
–The distribution and materials divisions (Building Products,
Distribution, Steel, and Concrete) recorded revenue in line with
the prior year, while operating earnings declined by 7% or $27
million. The reduction in EBIT was primarily due to challenging
trading conditions in the Steel business ($16 million impact),
a mill outage in Golden Bay Cement ($7 million impact), and
higher depreciation compared to the prior period ($5 million
impact). Outside of these factors, business unit earnings were
generally stable or slightly higher compared to the prior period.
The Building Products businesses maintained their strong market
positions, though continued to experience some pressure on
margins as sustained high input costs were not able to be fully
recovered. Distribution volumes benefited from the elevated
market backdrop and we continued to drive improvements to the
customer experience, rolling out our digital mobility tools to all
of our PlaceMakers branches. In Concrete, Winstone Aggregates
produced a very strong result (30% increase in EBIT) as large
infrastructure projects sustained the demand for aggregates and
quarry operating efficiency improved.
–The Residential and Development division delivered earnings
1% higher than the prior period. The housing business continued
its strong growth with house sales rising to 755 units. Margins
remained stable across most housing typologies, however a
higher proportion of units were sold in Christchurch resulting in a
lower overall margin and earnings in line with the prior year. Land
Development sales mainly from Wiri were completed faster than
expected, resulting in a strong EBIT of $56 million for the year.
–The Construction division grew revenue by 1% as a decrease from
the continued wind down of the B+I legacy projects was offset
by strong activity levels across the rest of the division. Operating
earnings for the division declined by $5 million or 10% (excluding
B+I) reflecting lower margin in the Major Projects and Brian Perry
businesses, while Higgins continued to perform well. There was no
change to the B+I provisions booked in February 2018.
In Australia, gross revenue declined by 2% and operating earnings
before significant items declined by $57 million or 50% compared
to the prior year. 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 and Stramit) and gross
margin compression in all businesses, as increased input costs (e.g.
resin, fuel, steel) were exacerbated further by a depreciating AUD/
USD currency ($23 million EBIT impact). The division made decisive
intervention to reset and strengthen the Australian business units.
By year end, over 60% of the identified initiatives aimed at overhead
cost savings and consolidating operations were implemented.
The Group completed the sale of the Formica business in June
2019 and the sale of the RTG business in November 2018. Net
proceeds from the transactions totalled $1.25 billion and were
delivered ahead of schedule, completing an important leg of the
Group’s strategy announced in June 2018.
Significant items of $234 million for the year included the loss
on sale for the International businesses of $140 million, and
other restructuring charges of $94 million primarily related to the
Australia reset.
Funding costs for the year decreased by 25% to $118 million,
resulting from lower debt levels and cessation of additional interest
charges in March 2019. The tax expense of $102 million compared
to a tax benefit of $96 million in the prior year, which reflected the
impact of the B+I loss provisions recognised in FY18.
Basic earnings per share were 19.2 cents compared with (25.5)
cents per share in the prior year. Adjusting for the impact of
significant items, earnings per share were 43.0 cents compared with
(8.1) cents per share in the prior year.
GROUP CASH FLOW
Cash flows from operating activities of $153 million were $243
million lower than the prior year.
Excluding B+I and the International businesses which were divested
during the year, trading cash flows from continuing operations were
$552 million, which was $251 million lower than the prior year. This
was due to the following factors:
–Reduced earnings, primarily in the Australia and Steel divisions;
–Increased creditor payments in the materials and distribution
businesses, which had been expected and reflects the unwind of
high creditor balances held as at June 2018;
Fletcher Building Limited Annual Report 201924

–Lower cash flows in Construction (ex-B+I), due to timing of cash receipts
in Higgins and South Pacific, and advance project payments received in
the prior period in Major Projects.
The trading cash flow impacts above were offset to a degree by a
favourable movement in debtors: a cash inflow of $28 million in FY19
compared to a cash outflow of $20 million in the prior year.
The ongoing cost of completing the legacy B+I projects resulted in a
cash outflow of $257 million in FY19 compared to an outflow of $285
million in the prior year.
Cash generation improved materially in the second half of the financial
year, with trading cash flow from continuing operations of $516 million
compared to $36 million outflows in the first half. This was driven
particularly by improved performance in working capital in the materials
and distribution businesses, with a cash inflow of $140 million in the
second half compared to a cash outflow of $203 million in the first half.
Capital expenditure for the Group was $348 million, compared with $304
million in the prior year. Of this total, $285 million was for the Group’s
continuing operations and was at the lower end of the FY19 capex
guidance of $275 million to $325 million.
FUNDING
Total available funding as at 30 June 2019 was $2,257 million. Of this,
$667 million was undrawn and there was an additional $1,372 million of
cash on hand.
The Group’s gearing at 30 June 2019 was 7.2% compared with 23.5% at
30 June 2018.
The Group’s leverage ratio (net debt/EBITDA) at 30 June 2019 was 0.4
times compared with 4.8 times at 30 June 2018. Leverage at 30 June 2019
excluding B+I was 0.4 times compared with 1.4 times at 30 June 2018.
The average maturity of the Group’s debt at 30 June 2019 is 4 years and
the hedged currency split is 40% Australian dollar; 56% New Zealand
dollar; 3% US dollar; and 1% spread over various other currencies.
Approximately 56% of all borrowings have fixed interest rates
with an average duration of 2.9 years. Inclusive of floating rate
borrowings, the average interest rate on the debt (based on
period end borrowings) is 5.0%. Interest rates reflect the removal
of the additional interest charges arising from the debt covenant
breach in 2018.
DIVIDEND
The 2019 final dividend is 15 cents per share, bringing the total
dividend for 2019 to 23 cents per share. In line with the Group’s
tax crediting policy, the Group targets to impute and frank at
least the final dividend subject to available tax credits. The final
dividend will be unimputed and unfranked for tax purposes.
The final dividend will be paid on Thursday 19 September 2019 to
holders registered as at 5.00 pm (NZ time) on Thursday 29 August
2019. The shares will be quoted on an ex-dividend basis from
Wednesday 28 August 2019 on the NZX and ASX. The Dividend
Reinvestment Plan will not be operative for this dividend payment.
OUTLOOK
New Zealand – activity in the residential sector in FY20 is
expected to decrease slightly compared to the current year,
driven by an easing in the level of new residential consents
but continued strength in the Auckland region. Activity levels in
the commercial and infrastructure sectors are also expected to
remain broadly stable, though with a changing mix as previous
spend in major roading shifts to road safety, water, and rail.
Australia – residential activity is expected to continue to contract,
however, the market environment remains uncertain. Commercial
activity and East Cost infrastructure is expected to remain broadly
flat with an established project pipeline.
Cash flow (NZ$m) for the year endedJune 2019June 2018Change
EBIT from continuing operations before significant items549631(82)
Depreciation and amortisation1741704
Provisions, significant items and other(65)(47)(18)
Trading cash flow before working capital movements658754(96)
Residential and Development(27)(28)1
Construction(16)35(51)
Other divisions:
- Debtors28(20)48
- Inventories(54)(54)
- Creditors(37)116(153)
Working capital movements(106)49(155)
Trading cash flow from continuing operations552803(251)
Discontinued operations14121(107)
B+I(257)(285)28
Trading cash flow309639(330)
Less: cash tax paid(28)(85)57
Less: interest paid(128)(158)30
Cash flows from operating activities153396(243)
Free cash flow from continuing operations254494(240)
Fletcher Building Limited Annual Report 201925

Divisions
Concrete
Building
Products
Residential and
Development
Fletcher Building Limited Annual Report 201926

Distribution
AustraliaConstruction
Steel
Fletcher Building Limited Annual Report 201927

Building
Products
DIVISIONAL PERFORMANCE OVERVIEW
The Building Products division reported gross revenue of $759
million, which was 1% lower than the prior year. Operating earnings
before significant items were $127 million, a decrease of $5 million
or 4% compared to the prior year, however, second half earnings
were up by 3%.
Revenue performance across the division reflected supportive
conditions in the residential sector, offset to a degree by lower
infrastructure and rural activity, which impacted the pipelines
businesses as one-off projects were not repeated. Winstone
Wallboards and Tasman Insulation delivered solid revenue growth of
7% and 5% respectively, supported by record production volumes.
All business units continue to focus on expanding their product
offerings. Highlights during the year included the launch of a new
rigid air barrier Weatherline
®
by Winstone Wallboards, product range
expansions and refreshes by Laminex NZ and double-digit growth in
the plumbing and electrical segments by Iplex NZ.
Operating earnings increased in Winstone Wallboards and Tasman
Insulation compared to the prior year, however this was more than
offset elsewhere in the division due to lower pipelines project
activity and input cost pressures. The cost pressures were seen in
higher energy costs – electricity, fuel and gas – and materials costs,
especially resin. While some of these were able to be passed on,
market competition restricted the full recovery of these costs.
In Humes, performance also reflected challenges identified
during the deployment of a new ERP system in the prior year. The
business has undergone a significant reorganisation to streamline
its processes and establish a good base moving forward. Significant
items of $10 million were recorded in the current period relating to
costs associated with this restructuring.
Trading cash flow of $142 million was consistent with the prior
year. This reflected an increase in inventory holdings by Winstone
Wallboards to meet current demand levels and in preparation for
transitioning to a new plant, while receivables continued to be well
controlled with a 1.6 day reduction in debtor days achieved through
the year.
Capital expenditure in the year was $37 million compared to the prior
year spend of $19 million. Key initiatives included Iplex NZ’s purchase
of a mobile extrusion plant for polyethylene (PE) pipe manufacturing
in the South Island, and investments in digital customer platforms
that went live during the year.
FUTURE FOCUS
The Building Products division’s focus for the next 12 months will
be on four key areas. Firstly, organic growth through adjacencies
and product innovation, secondly, an efficient operating model,
thirdly, enhanced pricing disciplines and finally, improved customer
experience. Key drivers of growth for FY20 include Winstone
Wallboard’s new Weatherline
®
products, Iplex’s superior performance
PVC-O range and a further refreshed décor range in our laminated
products. We continue to invest in ensuring our manufacturing
facilities are the most efficient in the market. This includes the
construction of a new Winstone Wallboards facility, New Zealand’s
first mobile PE extrusion plant which can be relocated on site for
large pipeline projects and increased automation in our insulation
facility. Our customer experience will receive renewed focus over
the coming year to ensure that our customers continue to see the
benefits of improved DIFOT, enhanced digital systems and a more
seamless transaction process.
Winstone Wallboards | Laminex New Zealand | Tasman Insulation
Humes | Iplex New Zealand | CSP Pacific
Fletcher Building Limited Annual Report 201928

Building Products
Financial Summary
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue759 764 (5)(1%)
External revenue587 613 (26)(4%)
EBIT127* 132
(5)
(4%)
Funds503 494 9 2%
Trading cash flow142 142 0%
* Before significant items.
22%
$127m
EBIT
% of Group EBIT
Fletcher Building Limited Annual Report 201929

Distribution
DIVISIONAL PERFORMANCE OVERVIEW
The Distribution division reported gross revenue of $1,596
million, which was 4% higher than the prior year. Operating
earnings were $104 million, consistent with the prior year.
Solid revenue growth in both PlaceMakers and Mico
continued to be supported by the Auckland market, with
the Waikato and Bay of Plenty regions returning to growth
in the second half. However, the Christchurch market
remains soft. The division continued to expand its branch
network to establish a greater market presence, with a new
PlaceMakers branch in Rotorua following the purchase of a
local competitor, while Mico opened a new branch
in Motueka.
Operating earnings were in line with the prior year despite
the growth in revenue, reflecting the combination of a highly
competitive market and upward pressure on labour costs,
which increased ahead of inflation. The division continues
to defend margins and this will continue be a major focus
looking forward.
Trading cash flow of $98 million was $14 million lower than
the prior year. This was primarily due to lower than expected
customer receipts through the year-end. Working capital
remains well controlled. However, with inventory days in line
with the prior year and debtor days improving by 0.8 days.
Capital expenditure in the year was $23 million, compared
to $20 million in the prior period. The division continued its
program of upgrades to branches and showrooms, with
the PlaceMakers Waiheke, Oamaru and Kaiwharawhara
branches all undergoing significant upgrades. The division
also continues to invest in digital innovation to streamline
customer facing processes through use of technology
on handheld devices. In addition, a new transportation
management system is using technology to transform
delivery capability and enable efficiencies through optimised
delivery routing and load sizes. A new head office ERP
system in PlaceMakers was also successfully implemented
during the year.
FUTURE FOCUS
Looking ahead to FY20, the division is continuing to focus
on investment in e-commerce and digital capability to create
an enhanced customer experience. Following the successful
PlaceMakers implementation during FY19, Mico will complete a
similar head office ERP upgrade during FY20. The investment in
branch and showroom upgrades will continue, and the division will
also explore opportunities to further increase its network footprint
and category reach.
PlaceMakers | Mico | Forman Building Systems | Snappy
Fletcher Building Limited Annual Report 201930

Distribution
Financial Summary
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue1,596 1,530 66 4%
External revenue1,552 1,490 62 4%
EBIT104 104* 0%
Funds300 264 36 14%
Trading cash flow98 112 (14)(13%)
* Before significant items.
18%
$104m
EBIT
% of Group EBIT
Fletcher Building Limited Annual Report 201931

Steel
DIVISIONAL PERFORMANCE OVERVIEW
The Steel division reported gross revenue of $555 million, 4%
higher than the prior year. Operating earnings were $33 million, a
decrease of $16 million or 33% compared to the prior year.
Increased revenue reflected continued strength in the residential
market, driving higher volumes in Easysteel roofing sales
and steady domestic growth of Colorcote products in Pacific
Coilcoaters. The division also continued to build market share on
strong customer service performance. Offsetting these gains
were subdued activity in the manufacturing and rural sectors and
lower project activity in Fletcher Reinforcing, where bids were not
submitted for some tenders due to higher risk profiles.
Lower operating earnings for the division reflected a combination
of an intensely competitive trading environment, rising global
steel prices and increases in a number of other input costs such
as energy, transport, and labour. Margins in EasySteel and Pacific
Coilcoaters were particularly impacted as higher costs could not be
recovered in the competitive market environment.
Trading cash flows for the year of $15 million were $40 million
lower than the prior year. The key contributors to this reduction
were the lower earnings of $16 million and increased investment
in inventory of $18 million. The higher inventory balance reflected
two factors: the division’s strategy to increase dual supply of raw
materials, with imported supply having longer lead times; and the
increase in steel input prices.
Capital expenditure in the year was $18 million, compared to $14
million in the prior period. Key investments included ‘ARMA+’
a new ERP system for Fletcher Reinforcing, upgraded roll-
forming capacity in Dimond, and safety improvements and crane
replacements across all business units.
FUTURE FOCUS
The Steel division’s focus for the next 12 months will be on three
key areas: best in class customer service; launching innovative new
steel-based systems to market; and growing our share in special
steels and speciality cladding products. We continue to improve our
customer experience to stay ahead of the competition including
improvements in product availability (DIFOTIS and lead times), speed
of quote and traceability of our products. Our focus on innovation
and new product development over recent years is starting to
materialise with numerous new products being ready to come to
market in the early stages of FY20 including a post tensioned steel
solution for vertical construction.
Easysteel (including Dimond Structural and Dimond Roofing)
Pacific Coilcoaters | Fletcher Reinforcing
Fletcher Building Limited Annual Report 201932

Steel
Financial Summary
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue555 532 23 4%
External revenue426 411 15 4%
EBIT33 49* (16)(33%)
Funds220184 36 20%
Trading cash flow15 55 (40)(73%)
* Before significant items.
6%
$33m
EBIT
% of Group EBIT
Fletcher Building Limited Annual Report 201933

Concrete
DIVISIONAL PERFORMANCE OVERVIEW
The Concrete division reported gross revenue of $802 million, 1%
lower than the prior year. Operating earnings were $84 million, a
decrease of $6 million or 7% compared to the prior year. When
adjusted for the impact of the cement mill outage, operating
earnings improved by 1%.
Winstone Aggregates had a very strong year with quarry revenue
up 12%, driven by improved pricing and an 8% increase in
aggregate sales volumes as major roading projects lifted demand.
The acquisition of the Tamahere quarry in the Waikato region
was completed in March 2019, with quarry operations now
fully integrated into the division, and reflecting the continued
investment in future resource.
In Golden Bay Cement, revenue was consistent with the prior
year when adjusted for the cement mill outage at the Portland
manufacturing facility in September 2018. Revenue continued
to be underpinned by consistent domestic demand and positive
price achievements. The business continued to improve the
extent and robustness of the cement supply chain during the
year as coastal shipping deliveries extended to New Plymouth,
and additional barge capacity was introduced between Portland
and Auckland.
In Firth, ready-mix volumes were steady nationally, though there
was variation by region with continued growth in Auckland offset
by a decline in Canterbury as some significant infrastructure
projects were completed. Overall, a positive lift in sales price
was achieved across the year. The new Auckland Airport precinct
ready-mix plant has been fully commissioned lifting the capacity
of the Auckland network and provides a well-positioned location to
service the region.
Operating earnings for the division were impacted by the $7
million cost of the cement mill outage. The strong volume and
price performance in Winstone Aggregates lifted earnings for this
business by 30% over the prior year. Cement earnings (adjusted
for mill outage costs) were 2% higher than the prior year, with
increased coal costs of $3 million offset by supply chain savings
and improved pricing. Firth earnings from masonry grew by
14% as the Hunua block plant favourably impacted manufacturing
efficiencies and further benefits were accrued from the refined
manufacturing footprint. This was offset by a decrease in ready-mix
earnings of 12% on the prior year as higher energy, labour and
distribution costs were not able to be fully recovered by
price increases.
Trading cash flow for the division of $136 million increased from
$128 million in the prior year, with improvements in working capital
offsetting the reduced earnings.
Capital expenditure for the division of $65 million was broadly in
line with the prior year. Investment was particularly focused on
aggregates, as the division invested in developing quarry resource
to meet projected demand, and purchased replacement heavy
mobile equipment to maintain quarry efficiencies and capability.
Firth continued its program of ready-mix truck replacement, and
commissioned a new ready-mix plant at Auckland Airport. Golden
Bay Cement spend focused on silo capacity and cement mill
resilience at the Portland facility, as well as the implementation
of the new cement barge service to Auckland to drive supply
chain efficiency.
Winstone Aggregates | Golden Bay Cement | Firth Industries
Fletcher Building Limited Annual Report 201934

FUTURE FOCUS
The division’s focus for FY20 will be on projects to further bolster
long term capability, reduce carbon emissions, improve customer
service experience – especially through digital connectivity – and
ensure cost competitive manufacturing and supply chain positions.
Firth will continue to invest in new trucks, rejuvenation of current
plants, and growth through investment in new fixed and mobile plant
locations. New product development in masonry will include a more
environmentally-friendly honing plant for enhanced
surface finishes.
Concrete
Financial Summary
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue802 812 (10)(1%)
External revenue549 545 4 1%
EBIT84 90* (6)(7%)
Funds656 628 28 4%
Trading cash flow136 128 8 6%
* Before significant items.
14%
$84m
EBIT
Golden Bay Cement will continue to work on cost reduction initiatives,
particularly in supply chain logistics. Tyre Derived Fuel, a project in
conjunction with Ministry for the Environment, will be completed in
the second half of FY20 enabling material cost improvements and
reduction in carbon emissions. The key product development initiative
is to develop a low carbon and sustainable cementitious material
which will reduce the carbon footprint for concrete.
Winstone Aggregates will continue to invest in quarry capacity to
ensure long term sustainable resource extraction and earnings, and
will focus on building out capabilities to meet the demands of large
project opportunities.
% of Group EBIT
Fletcher Building Limited Annual Report 201935

DIVISIONAL PERFORMANCE OVERVIEW
The Residential and Development division reported revenue of $639
million, an increase of 11% compared to the prior year. Operating
earnings grew by 1% to $137 million an increase of $1 million
over the prior year. The Group adopted NZ IFRS 15 Revenue from
Contracts with Customers during the year, which affected the
recognition of revenue from sale of houses and the comparison of
results over the prior year. Adjusting the comparative period for the
new accounting policies, the current year EBIT was 6% higher than
the prior year.
The Residential business grew revenue by 13% to $526 million
in FY19. Total house sales volumes increased by 6% to 755 units,
compared to 714 in the prior year. When section sales are excluded,
735 dwellings were sold during the year compared to 613 in the prior
year (527 dwellings when adjusted for the impact of NZ IFRS 15).
Auckland house sales continued to be a strong driver of revenue
growth in FY19. Good demand remains in the $600,000 - $900,000
range, which is the focus for the business. Sales in higher price
points have been steady, though the time taken to settle these
houses has on average been longer due to purchasers usually having
to sell their current homes first. Christchurch had a good year with
strong sales at the Atlas Quarter and Awatea developments, and
made the first sales in One Central, which is the focus for future
development in this market.
Residential earnings of $84 million were 1% lower than last year.
Margins remained stable across most housing typologies, however
a higher proportion of units were sold in Christchurch resulting in a
lower overall margin mix.
Land Development had continued success in realising value
from assets surplus to Group requirements, especially at the
Wiri development in South Auckland, which proceeded ahead of
expectations. This was the key driver of Land Development revenue
of $113 million, which was 5% higher than the prior year, and a 10%
increase in operating earnings to $56 million.
The newly created Panelisation business reported an operating
loss of $3 million, as it established a new factory, installed new
equipment, and recruited operating staff. The plant is targeting to
produce the first panels in the first half of FY20.
Trading cash flow for the division was $95 million compared to
$109 million in the prior year. Residential cash flow increased from
an outflow of $10 million in FY18 to an inflow of $55 million in the
current period, in line with a target of moving to 100% conversion
of earnings to cash. In Land Development, trading cash flow of $41
million was lower than the $120 million delivered last year, mainly
due to the deferred settlement of approximately $50 million for one
of the lots sold at Wiri.
Divisional funds employed increased to $651 million at 30 June
2019 from $604 million at 30 June 2018. This included $145 million
of lot purchases and $40 million of costs to develop residential land.
The current funds balance includes 3,687 residential lots for further
development or sale. In addition, the business has a further 1,735
units under unconditional agreements to be delivered over the next
five years.
Residential and
Development
Residential | Land Development | Panelisation
Fletcher Building Limited Annual Report 201936

FUTURE FOCUS
Looking ahead, the division will continue to scale its housing
business, with a number of new developments across
Auckland including sites at Te Atatu, Tamaki and Karaka.
There is also work being undertaken to assess investment
in additional land to the north-west and south of Auckland.
The new panelisation plant will commence manufacturing
panels for the Fletcher Living business in the first half of
FY20, supporting the increase in the volumes of homes
constructed during the coming year. The Land Development
business will continue to develop sites surplus to the
Group’s requirements, targeting approximately $25 million
per annum earnings in the medium term.
Residential and Development
Financial Summary
Residential and Development
EBIT
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue639 575 64 11 %
External revenue639 575 64 11 %
EBIT137 136 1 1%
Funds651 604 47 8%
Trading cash flow95 109 (14)(13%)
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
%
Residential84 85 (1%)
Land Development56 51 10%
Panelisation(3)NM
Total137 136 1%
23%
$137m
EBIT
% of Group EBIT
Fletcher Building Limited Annual Report 201937

Construction
DIVISIONAL PERFORMANCE OVERVIEW
The Construction division reported gross revenue of $1,702 million,
1% higher than the prior year. The division returned to profitability for
the year with operating earnings of $47 million compared to a loss of
$608 million in the prior year (a profit of $52 million when excluding
the B+I loss of $660 million in FY18).
Increased revenue for the division was reflected by strong revenue
growth in the Major Projects and Brian Perry Civil businesses, offset
by lower revenues from the ongoing completion of the B+I legacy
projects. The completion of the B+I legacy projects remains within the
project provisions announced in February 2018. Of the 16 key projects,
ten were completed by the date of this report, four are on track to be
completed by 31 December 2019, with the last two to be completed
in calendar 2020. In June 2019 the Group confirmed its intention to
recommence focused bidding in the vertical construction market.
At 30 June 2019 the backlog of work for the division (being the value
of contracted work awarded but not completed) was $1,445 million,
compared with $1,784 million in June 2018 and $1,600 million
in December 2018. B+I backlog decreased by $485 million. The
Major Projects business was successful in its bid for the Northern
Interceptor project for Watercare, while Higgins, South Pacific and
Brian Perry Civil continue to have good success with project wins in
New Zealand and Fiji and go into the FY20 year with good work in
hand volumes.
Operating earnings for the division were $47 million. The result was
underpinned by Higgins, which delivered earnings of $36 million.
While this was a $6 million decrease on the prior year, due to
the completion of several high-margin projects in Fiji and in New
Zealand, the outlook for the business remains strong. In aggregate,
the Major Projects, Brian Perry Civil and South Pacific businesses
reported earnings in line with the prior year.
Trading cash flow for the division for the year was an outflow of
$210 million compared to an outflow of $172 million in the prior year.
Cash outflows in the B+I business were $257 million in the current
year, compared to $285 million in the prior year. Excluding the B+I
business, trading cash flow for the division was an inflow of $47
million, which was lower than the inflow of $113 million recorded in
FY18 as a result of the unwind of advance payments on several large
roading contracts.
The division invested $31 million in capital expenditure in FY19,
consistent with the prior year. The focus of investment continues to
be in the manufacture and supply of bituminous products in Higgins
and in plant for foundations in Brian Perry Civil.
FUTURE FOCUS
Looking ahead, the division will build off the stabilised base that has
been established in FY19. With a refreshed leadership team in place,
the priorities will be to: complete the remaining legacy B+I projects
within current provisions; leverage a strengthened set of project and
risk management capabilities in winning and delivering new work
effectively; and bring innovative solutions to bear for key customers.
The division is well-placed to benefit from a significant pipeline of
transport, water and commercial infrastructure that is planned in
New Zealand in the coming years.
Major Projects | Building + Interiors (B+I)
South Pacific | Brian Perry Civil | Higgins
Fletcher Building Limited Annual Report 201938

Construction
Financial Summary
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue1,702 1,685 17 1%
External revenue1,622 1,605 17 1%
EBIT47 (608)*655 NM
Funds48 (238)286 NM
Trading cash flow(210)(172)(38)(22%)
Construction
EBIT*
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
%
Higgins36 42 (14%)
Infrastructure, South Pacific,
Brian Perry Civil
11 1010%
47 52 10%
B+I
(660)
NM
Total47 (608)NM
* Before significant items.
8%
$47m
EBIT
% of Group EBIT
Fletcher Building Limited Annual Report 201939

Australia
DIVISIONAL PERFORMANCE OVERVIEW
The Australia division reported gross revenue of $3,024 million
compared with $3,076 million in the prior year, a decrease of 2%.
Operating earnings before significant items were $57 million, a
decrease of $57 million or 50% compared to the prior year.
Overall performance in the division was well below expectations,
impacted by the sharp decline in the residential market with
commencements down approximately 20% on the prior year. This
resulted in lower volumes and heightened competitive intensity
in the higher margin and more residential exposed businesses,
especially Laminex and Stramit. In addition, gross margin
compression was experienced in most businesses, as increased
input costs such as resin, fuel and steel could not be recovered
in price in this environment. The increased costs were further
exacerbated by a depreciating AUD/USD currency resulting in a $23
million earnings impact compared to the prior year.
As part of our plans to grow our Australian businesses and in light of
the sharp residential market decline, we carried out a comprehensive
review and decisive intervention to reset and strengthen the division
in FY19. As a result we are now executing: (1) clear business unit
priorities, (2) a cost-out programme, (3) targeted growth investment
and (4) talent refresh. The program targets $100 million of gross
EBIT benefits by FY21, with around $15 million of net EBIT benefit
in FY20 and $50 million in FY21. The programme delivered $15
million of gross benefits in FY19. During the year we took decisive
action, including closing a number of sites, consolidating properties,
restructuring sales and other teams, and the Iplex and Rocla
businesses were merged.
Building Products Australia gross revenue declined by 2% in FY19
and operating earnings before significant items decreased to $40
million compared to $76 million in the prior year. This reduction was
due mainly to the Laminex business, where revenue declined 6%
and Laminex earnings were impacted by a reduction in margins
associated with increased competition in a declining residential
market; increased raw material input costs; and one-off costs
associated with industrial action in September to 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 that muted
the impact of 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 revenue in line with the prior year
and operating earnings of $8 million, down from $13 million in the
prior period. In Tradelink, market share gains continued in the small
to medium network customer segment (SME) and the business
increased these segment earnings year on year for the third year in
a row. Tradelink opened 11 new stores in the year and invested $10
million into showroom and branch refurbishments. Oliveri Solutions
(formerly Tasman Sinkware) recorded reduced revenue and EBIT in
the year given its high exposure to the residential market and the
retail sales channel declined materially year on year.
Steel Australia gross revenue declined 3% compared to the prior
year and operating earnings before significant items declined from
$25 million to $11 million. This was driven by higher raw material
costs, including unfavourable foreign exchange rates, which could
not be fully recovered through price increases in a competitive
market environment.
Building Products Australia: Laminex Australia | Iplex Australia | Rocla | Fletcher Insulation
Distribution Australia: Tradelink | Oliveri Solutions
Steel Australia: Stramit
Fletcher Building Limited Annual Report 201940

Australia
Financial Summary
Australia
EBIT*
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
NZ$M
Change
%
Gross revenue3,024 3,076 (52)(2%)
External revenue2,933 2,972 (39)(1%)
EBIT*57 114 (57)(50%)
EBIT* (A$m)53106 (53)(50%)
Funds1,735 1,804 (69)(4%)
Trading cash flow57 146 (89)(61%)
Year ended 30 June2019
NZ$M
2018
NZ$M
Change
%
Building Products Australia40 76 (47%)
Distribution Australia8 13 (38%)
Steel Australia11 25 (56%)
Divisional costs(2)NM
Total57* 114 (50%)
* Before significant items.
Trading cash flows for the division were $57
million compared to $146 million in the prior
year, with the decline primarily due to lower
earnings. A strong performance in receivables
management, where debtor days improved
by 2.2 days, support a stable working
capital position.
The division recorded significant items of $78
million for the year as restructuring costs were
recognised as a result of the strategic reset of
the division.
The division invested $91 million of capital
expenditure during the year, compared to
$79 million in the prior year, with major
investments in Laminex’s e-commerce offering
and a significant product range refresh. The
division continued to invest in automation in its
manufacturing operations, which remains a key
priority moving forward.
FUTURE FOCUS
The Australia division will remain focused on
its cost out programme, which will leverage
divisional scale and drive cross business unit
operational efficiencies to reset our cost
base. There will be targeted investment for
growth focusing on network densification
in the distribution business, and innovation,
new product development, and automation –
primarily in the manufacturing businesses. The
division will continue to strengthen its focus
on customer value propositions and service
promises to ensure we continue to grow in
key customer, product and market segments.
These include the small to medium enterprise
customer in Tradelink, the decorative category
in Laminex, the civil market for Iplex and water
quality for Rocla.
10%
$57m
EBIT
% of Group EBIT
Fletcher Building Limited Annual Report 201941

Our Board
MARTIN BRYDON
MBA, FAICD, FAIM, Dip Elect Eng, Dip Elron Eng
Independent Non-Executive Director
Term of office: Appointed director 1 September 2018, last elected
2018 annual meeting.
Board committees: Member of the Nominations Committee
and Member of the Safety, Health, Environment and
Sustainability Committee.
Martin has more than 40 years' experience in the Australian
building products sector, having started his career as an indentured
engineering cadet with BHP. He joined Cockburn Cement Limited
in 1981, where he then served as chief executive officer from
1998-1999. Following Cockburn Cement’s merger into Adelaide
Brighton in 1999, he held a number of senior management roles
before his appointment as chief executive officer and managing
director in 2014. Martin retired following a distinguished 30-year
career with Adelaide Brighton in January 2019.
BRUCE HASSALL
BCom, FCA (CAANZ)
Chair and Independent Non-Executive Director
Term of office: Appointed director 1 March 2017, last elected 2017
annual meeting.
Board committees: Chair of the Nominations Committee.
Bruce Hassall has had a distinguished career with broad and deep
commercial and strategic experience, and connections across the
New Zealand economy, including in the small medium enterprise
(SME), commercial, government and export sectors. As former
senior partner and chief executive officer of PwC New Zealand he
has extensive advisory background and knowledge of the corporate
environment. Bruce is the Chair of The Farmers' Trading Company
Limited and Prolife Foods Limited, and is a director of Bank of New
Zealand and Fonterra Co-operative Group Limited.
(L–R): Steve Vamos, Doug McKay, Barbara Chapman, Bruce Hassall, Antony Carter, Rob McDonald, Cathy Quinn, Martin Brydon.
Fletcher Building Limited Annual Report 201942