Fletcher Building announces expected FY20 annual results

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand



Fletcher Building announces expected FY20 annual results

Auckland, 11 August 2020: Fletcher Building today announced key aspects of its expected FY20
annual results, which will be released in full on 19 August 2020.
The result, which remains subject to final audit sign-off and approval by the Board, is expected
to be a net earnings loss for the year ended 30 June 2020 of $196 million, due predominantly to
the impacts of COVID-19. These impacts include significant lost revenues, especially during the
New Zealand lockdown and start-up period; lower productivity leading to additional
provisioning on the legacy construction projects; and one-off restructuring costs as the
Company prepares for reduced market activity.
Despite lower earnings, the Company’s cash flow performance and balance sheet position has
remained very strong. Operating cash flows are expected to increase in FY20 to $410 million,
driven particularly by effective working capital management through the COVID-19 disruptions.
The Group’s leverage ratio at 30 June is expected to be 0.9x, below the target range of 1.0x – 2.0x.
Fletcher Building Unaudited FY20 Annual Results (NZ$ million)

EBIT before Significant Items and before Construction Provisions 310
Construction Provisions (150)
EBIT before Significant Items 160
Significant Items (276)
EBIT (116)
Net Loss (196)

Cash Flows from Operating Activities 410
Capital Expenditure 232
Net Debt 497
Liquidity 1,629
Leverage (Net Debt / EBITDA) 0. 9x
Fletcher Building CEO Ross Taylor said: “Prior to March, the business was trading in line with
expectations and making good progress with operating efficiencies. As COVID-19 crossed New
Zealand and Australian borders, we moved quickly to protect our people and ensure we are well
positioned to successfully navigate the market uncertainty in FY21 and beyond. Our people have
done an exceptional job of serving our customers, safely managing our operations, and resetting
the business through a period of considerable disruption.”

Page | 2
“Anticipating lower market activity ahead, we have taken some difficult but decisive actions to
reset the cost base of the business. This has included closure of some supply chain and
manufacturing facilities; ceasing of some unprofitable product lines; a reduction in office space;
and, regrettably, a planned reduction in our workforce by around 1,500 positions. These have
been tough but necessary decisions to right-size our business, and we expect them to deliver a
permanent reduction in our cost base in FY21 of c$300m p.a. We expect that FY20 significant
items charges in respect of these actions will be $187 million. Together with asset impairments
of $59 million in the Rocla business that we are divesting, and $30 million of costs on our early
exit of the USPP 2012 notes, we expect total FY20 significant items to be $276 million. An additional
c$90 million of significant items is expected in FY21 as the final cost-out actions are completed.”
Mr. Taylor said that the Construction division had continued to make progress in working through
its legacy, loss-making projects. “The value of legacy Buildings and Infrastructure work to
complete has been reduced from approximately $2.2 billion in February 2018 to approximately
$0.6 billion currently. The division’s forward order book outside of the legacy projects has been
rebuilt to comprise around $2.4 billion of work with a materially better margin outlook, and
significantly lower and more appropriate risk profile.”
“Through the FY20 year-end process we have decided to increase the provisions to complete our
historical construction projects. This is expected to reduce our FY20 EBIT result by $150 million.
Three factors have led to these increased provisions. Around 50% is due to reduced productivities
on key legacy projects, which were significantly disrupted by COVID-19 in FY20, and we expect
ongoing challenges in FY21 across our supply chains and project resourcing. Around 20% of the
additional provisions are due to issues which have arisen on a handful of historically completed
projects. The final 30% consists of a prudent risk provision across our portfolio of legacy work.”
The Company has maintained a strong cash flow and balance sheet position through the COVID-
19 disruption. Operating cash flows in FY20 are expected to be $410 million, supported
particularly by effective working capital management. FY20 capital expenditure is expected to be
$232 million, substantially below the initial market guidance for FY20 of $275 to $325 million. The
Group’s net debt at 30 June 2020 is expected to be $497 million and liquidity is expected to be
$1.6 billion, including $1.1 billion of cash on hand. The Group’s leverage ratio of Net Debt to
EBITDA is expected to be 0.9x, below the target range of 1.0x – 2.0x.
Mr. Taylor concluded that the Company remains in a strong position to continue driving its
strategy and performance improvement. “Our focus in the past few months has been on the
safety and well-being of our people, and acting quickly to preserve profitability and balance sheet
strength. We have ensured our cost base is set for expected lower market activity, and kept cash
flows and liquidity strong. We will watch the market closely, as the environment does remain
uncertain, but we also believe it will provide opportunities for growth and the business is in a good
position to capitalise on those.”
Conference call to be held today
Fletcher Building management will host a briefing for all investors, analysts and media today at
10:30am NZT / 8:30am AEST to discuss the trading update. Participants can register for the
conference by navigating to the following link:
https://s1.c-conf.com/diamondpass/10009292-invite.html

Page | 3
Upon registration you will be provided with the dial in number, passcode, and your unique access
PIN. To join the conference simply dial the number and enter the passcode followed by your PIN,
and you will join the conference instantly.
Webcast – You can watch the webcast live at the following link:
https://edge.media-server.com/mmc/p/5f5fk7ei

A replay facility will be available after the conference call by dialing the telephone number below
and entering the PIN 10009292.
Australia Toll Free
1 800 265 784 Singapore 800 101 3223
Australia Local
+61 7 3107 6325 United Kingdom 0800 031 4295
New Zealand 0800 886 078 USA/Canada 1855 883 1031
Hong Kong 800 930 639


#Ends
Authorised by:
Andrew Clarke
Company Secretary
For further information please contact:
MEDIA
Christian May
General Manager – Corporate Affairs
+64 21 305 398
Christian.May@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com

Fletcher Building
FY20 Expected
Annual Results
ROSS TAYLOR
—Chief Executive Officer
BEVAN MCKENZIE
—Chief Financial Officer
11 August 2020

Important Information
2
This presentation has been prepared by Fletcher Building Limited and its group of companies (“Fletcher Building”) for informational
purposes.This disclaimer applies to this document and the verbal or written comments of any person presenting it.
This presentation provides additional comment on the expected FY20 annual results dated 11 August 2020.As such, it should be read in
conjunction with and subject to the explanations and views given in that document. The result, which remains subject to final audit sign-off
and approval by the Board, will be released in full on 19 August 2020.
The information in this presentation has been prepared by Fletcher Building with due care and attention, however, neither Fletcher Building
nor any of its directors, employees, shareholders nor any other person given any representations or warranties (either express or implied) as to
the accuracy or completeness of the information and to the maximum extent permitted by law, no such person shall have any liability
whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from thispr esentation or any
information supplied in connection with it.
This presentation may contain forward looking statements, that is statements related to future, not past, events or other matters. Forward
looking statements may include statements regarding our intent, belief or current expectations in connection with our future operating or
financial performance, or market conditions. Such forward looking statements are based on current expectations, estimates andassumptions
and are subject to a number of risks and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable
circumstances. There is no assurance that results contemplated in any of these projections and forward looking statements will be
realised.Actual results may differ materially from those projected. Except as required by law, or the rules of any relevant stock exchange or
listing authority, no person is under any obligation to update this presentation at any time after its release or to provide further information
about Fletcher Building.
The information in this presentation does not constitute financial product, legal, financial, investment, tax or any other advice or a
recommendation.
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020

Navigated COVID-19 impacts, business set up for FY21, and
maintained momentum on key strategies and focus areas
3
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020
•Responded quickly to
COVID-19 impacts
•Focus on health and
safety of our people
•Strong customer
service performance
•Cash and balance
sheet remain strong
FY20
•Positioned the
business cost base for
reduced activity in
FY21
•Accelerated key
ecommerce activities
•Ensured debt lines
and liquidity remain
strong and available
FY21 set-up
•Strategy and growth
ambitions remain
unchanged
•Ongoing focus on
profitability and
operational excellence
•Complete Australia
portfolio
rationalisation
•Clear historical
Construction projects
FY21 and beyond

COVID-19 response to NZ lockdown and Australia restrictions
focused on health and safety, customer service, costs and cash
4
•Serious injuries reduced by over 60% year-on-
year
•COVID-19 impact resulted in Q4 operating
earnings of c$50m, a c$200m reduction on
expected Q4 earnings
•Strong cash flows of $410m
•Balance sheet strength preserved, liquidity
$1.6b, net debt $0.5b
ActionsFY20 Results
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020
•Safely shut down and restarted NZ businesses and
dealt with Australia restrictions
•Maintained customer service and performance
•COVID-19 Support Hub App launched,
downloaded by 7,000 of our people, financial
hardship fund in place
•Bridging Pay Programme implemented (govt
supported)
•Strong focus on costs and cash:
>Capex reduced
>Board, Execs and GM remuneration reduced,
no STI bonuses
>Debtors / Creditors well managed
>Negotiated reductions in both NZ property lease
costs and other key supply agreements, all
discretionary spend stopped
>Interim dividend cancelled, share buyback
programme suspended

•Well through the historical Construction
work book
•Additional $150m provisions due to:
>COVID-19 disruptions and productivity
impacts, both in FY20 and ongoing (50%)
>Issues on historically completed projects
(20%)
>Prudent risk provision across portfolio of
legacy work (30%)
•c$600m legacy work to complete, including
impact of additional provisions
While the Construction division continued to progress and finish
historical projects, the provision envelope has increased
5
2.2
0.6
0.7
2.4
HY18FY18FY19FY20
High-risk, lump sum D&C
Lower-risk smaller jobs,
maintenance contracts
Work to Complete ($b)
1.Completed significant number of legacy jobs,
risk reduced
2.New work won with materially better margin
outlook and significantly lower and more
appropriate risk profile
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020
Significant progress made on two fronts since HY18
Provision envelope increased
Note: The part of the NZICC rebuild funded by insurance is included in $2.4b FY20 order book

Setting up for likely lower market activity in FY21 required
permanent reductions to our cost base and workforce
6
•Reductions to operating footprint, supply chain
costs and general costs
•Workforce size will be reduced by c12% (over
1,500 people) matched to probable future
market activity
•Australia portfolio rationalisation continuation
•Renegotiated debt covenants to preserve
liquidity and retired a further USD$300m of our
most expensive debt lines, saving c$40m of
future interest payments
•Capex envelope reduced until market outlook
more certain
•Actions expected to achieve a permanent
reduction in cost base in FY21 of c$300m p.a.
•FY20 significant items of $276m:
>Right-sizing of the cost base $187m
>Rocla asset impairments $59m
>Debt restructuring resulted in one-off
Make Whole payment $30m
•FY21 significant items of c$90m as final cost-
out actions completed
•Significant items (FY20 and FY21) are
expected to be c55% cash/45% non-cash
ActionsImpact
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020

Key aspects of expected FY20 annual results
Profit impacted by COVID-19, cash flow and balance sheet strong
7
Unaudited reported results
NZ$m
Jun 2020
12 months
EBIT before significant items and before construction provisions310
Construction provisions(150)
EBIT before significant items160
Significant items(276)
EBIT(116)
Net loss(196)
Cash flows from operating activities410
Capital expenditure232
Net debt497
Liquidity1,629
Leverage (Net debt / EBITDA)0.9x
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020
The result, which remains subject to final audit sign-off and approval by the Board, will be released in full on 19 August 2020.

FY21 - Positioned for reduced activity
Full update on 19 August 2020
8
Fletcher Building FY20 Expected Annual Results Presentation | © August 2020
•Business reset for market downturn of c25% in NZ and c20% in Australia
•Suite of cost-out actions already implemented to preserve profitability
•Strong cash flows of $410m, liquidity of $1.3b post-repayment of USPP 2012 notes
•Sharpened focus and ready to act, vigilant to macro factors, market activity and how forecasts evolve
•We have a strong balance sheet and a resilient business reset to withstand market pressures and take
advantage of opportunities
•Provide a full update on 19 August 2020

Fletcher Building
FY20 Expected Annual Results Presentation
Q&A