Fletcher Building confirms FY20 annual results

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



Fletcher Building confirms FY20 annual results

Auckland, 19 August 2020: Fletcher Building today announced its audited annual results,
confirming a net earnings loss for the year ended 30 June 2020 (FY20) of $196 million compared
to a profit of $164 million in the year ended 30 June 2019 (FY19). The Group also confirmed
strong operating cash flows of $410 million and ended the year with a strong balance sheet with
liquidity of $1.6 billion.
Summary:
 Final results in line with market announcement of 11 August 2020
 Revenue of $7,309 million
 EBIT before significant items $160 million
 Net Loss After Tax of $196 million, compared to a profit of $164 million in FY19
 Strong cash flows of $410 million
 Balance sheet strong with liquidity of $1.6 billion and net debt of $0.5 billion
 Nil dividend
Fletcher Building CEO Ross Taylor said: “Fletcher Building’s FY20 performance was characterised
by the impacts of COVID-19 and the actions we took to ensure we were well positioned to
successfully navigate the market uncertainty in FY21 and beyond. Prior to March 2020, the
business was trading in line with expectations and making good progress with operating
efficiencies. The subsequent lockdown in New Zealand and restrictions in Australia had a
significant impact on our FY20 revenues and profitability.
“Our focus through this period has been on three key areas: the health and safety of our people;
enhancing the resilience of our business by managing our costs, cash flows and balance sheet;
and ensuring we stay focused on strong customer performance and delivering our strategy.
“We have been unwavering in our commitment to health and safety. We are driving positive
change in our safety culture through our company values and a genuine belief that all workplace
injuries are preventable. In FY20 serious injuries reduced from 15 to 8 and we had no fatalities.
While our Total Recordable Injury Frequency Rate (TRIFR) 5-year trend continues downward, our
FY20 rate was slightly up from last year. This only strengthens our commitment and focus on
preventing all injuries.
“Anticipating lower market activity ahead, we have taken some difficult but decisive actions to
reset the cost base of the business. We expect these actions to deliver a permanent reduction in
our cost base in FY21 of approximately $300 million per annum. Significant items in respect of
this restructuring, along with one-off charges in our Rocla business and from the early repayment
of our USPP debt, have totalled $276 million in FY20. We have sized our business for a market

Page | 2
downturn of around 25 percent in New Zealand and around 20 percent in Australia, although
there is a high degree of uncertainty over the outlook. We will be looking hard at the trends in
activity over the next few months and will be ready to adapt and respond if needed.
“As already announced, we decided to raise a further $150 million provisions against our
historical construction projects. While this was disappointing, Fletcher Construction, through a
reset of bid margins and disciplines now has a $2.4 billion forward-order book of new work with
a materially better margin outlook and lower-risk profile.
“Pleasingly, our operating cash flows in FY20 have remained robust at $410 million, supported by
effective working capital management in a disrupted period. We have also preserved strong
liquidity and funding lines. Our leverage ratio remains below the bottom end of our target range,
we have total available funding of $2.1 billion as at 30 June 2020, and liquidity for the Group was
$1.6 billion. In addition, we pre-emptively renegotiated covenants with our lenders to enable us
to rely on more favourable terms for covenant testing through to the end of 2021, should we need
to.
“As a result of the actions we have taken, our business is well-positioned to continue to drive its
strategy and performance improvement. We will continue key investments in our digital and
innovation strategies, while also taking opportunities to grow our market share either in our
existing product lines or in logical adjacencies. With our strong balance sheet, we expect the
tougher market will present better opportunities to achieve our aspirations and overall strategies.”
In line with the Company’s Dividend Policy, the Board has not declared a final dividend for FY20.
#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

---

Results Announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Fletcher Building Limited
Reporting Period 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$7,309,000 (12%)
Total Revenue $7,309,000 (21%)
Net profit/(loss) from
continuing operations
( $196,000) N/A
Total net profit/(loss) ( $196,000) N/A
Final Dividend (Not Applicable)
Amount per Quoted Equity
Security
The Board has not declared a final dividend for FY20.
Imputed amount per Quoted
Equity Security

Record Date
Dividend Payment Date
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.87 $3.53
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Fletcher Building Limited recorded a net loss of ($196,000,000) in
FY20, compared to a net profit in FY19, therefore the percentage
change is not meaningful.
Authority for this announcement
Name of person authorised to
make this announcement
Andrew Clarke, Company Secretary
Contact person for this
announcement
Aleida White, Head of Investor Relations
Contact phone number +64 21 155 8837
Contact email address investor.relations@fbu.com
Date of release through MAP 19/08/2020

Audited financial statements accompany this announcement.

---

Fletcher Building
Full Year Results to
30 June 2020
ROSS TAYLOR
—Chief Executive Officer
BEVAN MCKENZIE
—Chief Financial Officer
19 August 2020

Important Information
2
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes. Thisdisclaimer
appliestothisdocumentandtheverbalorwrittencommentsofanypersonpresentingit .
ThispresentationprovidesadditionalcommentontheAnnualFinancialResults2020dated19August2020. Assuch,it shouldbereadinconjunctionwithand
subjecttotheexplanationsandviewsgiveninthatdocument. Unlessotherwisespecified,allinformationis fortheyearended30June2020.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitemsand/or
theresultsofthebusinessesdivestedintheyearended30June2019. Forthe12monthsended30June2020, theGroup’sfinancialstatementsareprepared
inaccordancewiththenewleaseaccountingstandardNZIFRS16, adoptedfrom1 July2019. Inpriorperiods,leasecostswerefullyreportedinEBIT. Under
NZIFRS16, thetwocomponentsofleasecostsarereportedseparately:(1) thedepreciationofright-of-useassetsisreportedinEBITand(2) thedeemed
interestportionoftheleaseliabilityis reportedinleaseinterestexpense.Financialtablesinthispresentation(whereindicated)showboththereportedresult
forthepriorperiod,aswellasa proformarestatementofthepriorperiodtoillustratetheimpactofNZIFRS16hadit beenappliedandtoallowfora like-for-
likecomparison. A numberofnon-GAAPfinancialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthe
businessandhavebeenderivedfromFletcherBuilding’sfinancialstatementsforthe12monthsended30June2020.Youshouldnotconsideranyofthese
statementsinisolationfrom,orasa substitutefortheinformationprovidedintheFinancialStatementsforthe12monthsended30June2020, whichare
availableat
www.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofits
directors,employees,shareholdersnoranyotherpersongivenanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyor
completenessoftheinformationandtothemaximumextentpermittedbylaw,nosuchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss
(including,withoutlimitation,arisingfromanyfaultornegligence)arisingfromthispresentationoranyinformationsuppliedinconnectionwithit .
Thispresentationmaycontainforwardlookingstatements,thatis statementsrelatedtofuture,notpast,eventsorothermatters. Forwardlookingstatements
mayincludestatementsregardingourintent,belieforcurrentexpectationsinconnectionwithourfutureoperatingorfinancialperformance,ormarket
conditions. Suchforwardlookingstatementsarebasedoncurrentexpectations,estimatesandassumptionsandaresubjecttoanumberofrisksand
uncertainties,includingmaterialadverseevents,significantone-offexpensesandotherunforeseeablecircumstances. Thereisnoassurancethatresults
contemplatedinanyoftheseprojectionsandforwardlookingstatementswillberealised. Actualresultsmaydiffermateriallyfromthoseprojected. Exceptas
requiredbylaw,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonis underanyobligationtoupdatethispresentationatanytimeafter
itsreleaseortoprovidefurtherinformationaboutFletcherBuilding.
Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceora recommendation.
Fletcher Building Full Year Results Presentation | © August 2020

Fletcher Building
Full Year Results Presentation 2020
Agenda
1. ResultsOverview Ross Taylor
2. Positioning for FY21 Ross Taylor
3. Financial Results Bevan McKenzie
4.Strategy and Outlook Ross Taylor

Navigated COVID-19 impacts, business set up for FY21, and
maintained momentum on key strategies and focus areas
4
Fletcher Building Full Year 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
5
Fletcher Building Full Year Results Presentation | © August 2020
•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 operating cash flows of $410m
•Balance sheet strength preserved, liquidity
$1.6b, net debt $0.5b
ActionsFY20 Results
•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 in Buildings and Infrastructure businesses 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, down from $2.2b at HY18
•c$175m of legacy project losses remaining to incur as cash outflows
While the Construction division continued to progress and finish
historical projects, the provision envelope has increased
6
Fletcher Building Full Year Results Presentation | © August 2020

Setting up for likely lower market activity in FY21 required
permanent reductions to our cost base and workforce
7
Fletcher Building Full Year Results Presentation | © August 2020
•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

FY20 - Financial results
8
Fletcher Building Full Year Results Presentation | © August 2020
EBIT
1
$160m
FY2019 $549m
EPS
(23.5c)
FY2019 28.8c
EBIT margin
2.2%
FY2019: 6.6%
Dividend
nil
FY2019: 23cps
Cash flows from
operating activities
$410m
FY2019 $153m
Leverage ratio
0.9x
Target range: 1.0-2.0x
Revenue
$7,309m
FY2019 $8,308m
Net Earnings/(Loss)
($196m)
FY2019 $246m
Note: All metrics are for continuing operations except cash flow from operating activities. RTG and Formica were sold in FY19
1
Measures before significant items are non-GAAP measures used by management to assess the performance of the business and
have been derived from Fletcher Building’s financial statements for the 12 months ended 30 June 2020. Details of significant
items can be found in note 2 of the financial statements

•Good momentum in Laminex and Insulation
•Tradelink/Stramit poor 2
nd
half – few larger projects
•Rocla/Iplex loss c$15m – few large projects, lower
volumes, Rocla industrial action as sites closed
9
$740m
FY19 $802m
$1,471m
FY19: $1,596m
$1,173m
FY19: $1,314m
$2,802m
FY19: $3,024m
$1,318m
FY19: $1,702m
$466m
FY19: $639m
Gross Revenue
EBIT
1
$74m
FY19: $89m
$85m
FY19: $115m
$87m
FY19: $167m
$33m
FY19: $77m
($147m)
FY19: $51m
$65m
FY19: $137m
•Growth in line with market
•Strategic digital and automation investment
•Good performance in finishing trades, early
stage civil and infrastructure softer
•Steel market remained challenging
•Housing market demand remained strong and
prices supportive
•COVID-19 delayed land development and
housing settlements now moved into FY21
•Year-on-year margin expansion (pre-COVID-19)
•Market share gains in Firth and cement
•Price gains in aggregates and ready-mix
•Lockdown significantly affected paving, civil and
building works programmes
•Provisions of $150m, $600m legacy work to go
•Strong order book of $2.4b with good wins
FY20 - Division performance summary
1
FY19 has been adjusted for proforma IFRS16 to allow for a like-for-like comparison (12 months FY19 reported +IFRS16 proforma adjustment)
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 12 months ended 30 June 2020. Details of significant items can be found in note2 of the financial statements
Fletcher Building Full Year Results Presentation | © August 2020
Distribution
Building
Products
Concrete
Construction
Residential and
Development
Australia

FY20 - Balanced scorecard metrics: safety and sustainability
10
Safety
Sustainability
•Group-wide ‘Protect’ programme reset well underway,
Protect now one of our core values
•Our aim is to have zero injuries every day
•Significant improvement in serious injuries from 20 in
FY19 to 8 in FY20
•FY20 focus on critical risks but continue to target TRIFR
under 5.0
•Committed to reduce carbon emissions by 30% by 2030,
first building and construction company in Australasia to
set a Science-based Target for carbon reduction
•Aligns with aims to limit global warming to below 2
o
C
•Carbon emissions remained c8% below FY18 levels,
through market activity and permanent reductions from
our focus on carbon emissions and operating efficiencies
•Favourable outcomes on footprint rationalisation -cost
out and sustainability
Total Recordable Injury
Frequency Rate
1
6.9
5.1
5.0
5.7
FY17FY18FY19FY20
1
TRIFR = Total no. of recorded injuries per million man hours worked. Does not include Restricted Work Injuries.
2
Serious Injury include 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.
3
Carbon data excludes emissions from the International division which was divested in FY19.
1,238
1,147
1,132
FY18FY19FY20
Carbon (CO
2
) Emissions
(thousand Tonnes)
3
Serious injuries
2
33
21
20
8
FY17FY18FY19FY20
Safety
Sustainability
Fletcher Building Full Year Results Presentation | © August 2020

FY20 - Balanced scorecard metrics: engagement and customer
11
Engagement
Customer
•Significant engagement through COVID-19 Support Hub
App
•Group values refreshed: Protect, Be Bold, Customer
Leading, Better Together
•Continue to drive employee engagement >80% (top
quartile)
•NPS result improvements continue to be underpinned by
high product quality and reliability, and professional
customer service
•Rollout and embed customer service promises across
all businesses
•Drive to a best in class net promoter score of >55
Employee Engagement Rating
1
Net Promoter Score
2
26
28
39
39
FY17FY18FY19FY20
66%
67%
70%
71%
FY16FY17FY18FY19
1
Next employee engagement survey planned for FY21
2
Net Promoter Score calculated as % Promoters (9 - 10) minus % Detractors (0 -6). Prior years have been restated to reflect inclusion of all Business Units in NPS programme.
Engagement
Customer
Fletcher Building Full Year Results Presentation | © August 2020

Fletcher Building
Full Year Results Presentation 2020
Agenda
1. ResultsOverview Ross Taylor
2. Positioning for FY21 Ross Taylor
3. Financial Results Bevan McKenzie
4.Strategy and Outlook Ross Taylor

FY21 - Positioned for reduced activity
Focus on preserving profitability and balance sheet position
13
Fletcher Building Full Year Results Presentation | © August 2020
Market
Preserve
profitability,
cost base
reset
Cash flow
and
liquidity
•Suite of cost-out actions already implemented to preserve profitability
•Benefit of a c$300m cost reduction in FY21, though offset by market decline
•Further work on cost out (property and supply chain) planned for FY21
•Business reset for market downturn of c25% in NZ and c20% in Australia
•Expect stronger first half compared to second half as economies slow, unemployment rises
•Remains very uncertain – we will monitor closely and continue to adjust as necessary
Capex
•Targeted capital investment over last 5 years allows us to sensibly restrict base capex to
c$150m in FY21, plus $50m for next phase of WWB plant
•Preserving investment in key strategic projects, esp. sustainable manufacturing and digital
platforms
•Ongoing focus on cash flows and working capital, good disciplines established over past 3 years
•Liquidity of $1.3b post-repayment of USPP 2012 notes
•Funding costs reduced by $20m to c$60m in FY21
Market
positions
•Relentless focus on customer
•Target to increase market share through downturn
•Stay very attuned to opportunities in our existing segments and logical adjacencies

FY18FY19FY20FY21FFY22F
7,636
8,687
9,118
7,750
7,595
8,342
8,403
8,688
7,819
8,210
FY18FY19FY20FFY21FFY22F
Market outlook
Positioning NZ businesses for overall market downturn of c25%
Residential Consents (#)
NZ Historical and Forecast
Value of Commercial and Infrastructure work put in place
(Nominal $m)
Key:CommercialInfrastructure
14
33k
Source: Infometrics, FB Management Estimates. These are our base case estimates for FY21, though we acknowledge that there
is a lot of uncertainty over the outlook and that actual activity levels may be materially different.
35k
37k
25k
23k
-32%
-10%
-15%
Overall
•Outlook is uncertain, influenced by unemployment,
govt. spending, inward migration and COVID-19
clusters
Residential
•46% of NZ revenue, key driver of NZ profitability
•FBU base case is for residential consents to decline
c30% in FY21 and a further 10% in FY22
•Returning residents, low interest rates, government
stimulus remain supportive
Commercial / Non-residential
•30% of NZ revenue
•FBU base case is for commercial work put in place to
decline c15% in FY21, then stabilise in FY22, weighted
to downside
Infrastructure
•24% of NZ revenue
•FBU base case is for infrastructure work put in place
to decline c10%, then to grow steadily, solid outlook
Fletcher Building Full Year Results Presentation | © August 2020

Building Products
Focus on margins, product innovation and sustainable
manufacturing
15
Fletcher Building Full Year Results Presentation | © August 2020
Finishing
Products
(WWB, TINZ,
Laminex)
Steel
Pipes
(Humes, Iplex)
•Ongoing focus on pricing disciplines and holding margins
•c$400m new WWB Tauranga, commence 6 months later
•Driving growth through new products e.g. GIB products, TINZ building
wraps, expanded product range in Laminex
•Continue to launch new products and deliver superior customer service
•Digital initiatives to improve efficiency and customer experience
through WWB customer app and new Laminex website
•COVID-19 resulted in further footprint and cost
rationalisation to drive margin improvements in FY21
•Continue to drive product innovation and customer service
e.g. through Dimond mobile roll-to-roof system
•Footprint rationalised, continue to drive improvements
in Humes, inventory reduced
•Deliver Iplex revenue and margin growth through
expanded product range
•Mobile extrusion plant commissioned and fully
operational
GIB Weatherline
CSP lighting poles and barriers

Concrete
Focus on margins, sustainability and operational footprint
16
Fletcher Building Full Year Results Presentation | © August 2020
•Ongoing momentum in pricing disciplines
and market share gains achieved in FY20
•Firth new ready-mix concrete plant in Mt
Maunganui driving efficiencies
•Acquisitions delivering - Tamaherequarry
acquired in Mar’19 delivering strong EBIT
return
•Quarry and ready-mix networks right-sized
•Masonry further manufacturing footprint
rationalisation
•Firth digital connectivity to improve customer experience in
FY21
•Upsurge in switch to digital dockets
•GBC tyre-derived fuel cost and carbon reduction initiative
going live in FY21
•GBC innovation on pozzolans continues
•Environmental Product Declarations for Golden Bay cement,
an Australasian first in cement
•Masonry new sized paving options
Operating
efficiency and
pricing
Ecommerce,
digitisation and
automation
Sustainability
and Product
Innovation
Firth new ready-mix concrete plant in Mt Maunganui

Distribution
Focus on network efficiency and digital offer to customers
17
Fletcher Building Full Year Results Presentation | © August 2020
•Ongoing focus on pricing disciplines
•Regional hub structures introduced in Auckland and Christchurch, closed
underperforming stores
•Workforce optimisation programme
Network
efficiency
Ecommerce and
digitisation
•Distribution digital transformation providing 24x7 omnichannel experience in
PlaceMakers
>70% of branch transactions now digitised
>Trade App launched in April
>Shop.PlaceMakerslaunched
>Accelerating trade portal plans and estimation transformation
•Transforming transport
capability
>Efficiency improved through
own vehicle delivery
>Service levels enhanced
through uber-style “track
your truck”
•“Skip the counter” enabling
seamless in-branch experience
Product
Innovation and
Customer
Service

•#2 house builder in New Zealand
•New home sales mainly priced $600-900k
•Strong operating disciplines and customer focus
•c4,000 future lots under control, >4 years’ supply
•Clever Core new manufacturing plant, global
innovation into NZ to evolve the way we build
houses, 40 produced in FY20 since Oct-19 opening,
FY21 external sales planned
•Intend to scale apartment business
Residential and Development
Strongly positioned to expand, leveraging off-site manufacturing
18
Fletcher Building Full Year Results Presentation | © August 2020
Residential and Development
•Targeting c700-800 unit sales for FY21
•Land Development $25m p.a. run-rate but will
be higher in FY21 due to delayed FY20
settlements
Fortnightly House Sales, strong sales post lockdown
Rolling fortnightly 2 Jul’19 to 27 Jul’20
Average fortnightly over FY20
# Conditional Agreements
0
20
40
60
80
02/07/1902/10/1902/01/2002/04/2002/07/20
Jul’19 Oct’19 Jan’20 Apr’20 Jul’20
Level 4
Lockdown
Christmas
FY21
Fletcher Living WaiataShores

Construction
Strengthened future order book
19
Fletcher Building Full Year Results Presentation | © August 2020
Significant progress made on two fronts since HY18
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
•Winning the right work with the right customers
egWatercare, AIA runway, strong pipeline of
pavement and maintenance
•Securing new work in line with targeted
balanced portfolio and better risk profile:
>1/3
rd
Lump Sum / D&C
>1/3
rd
Alliance / Measure & Value
>1/3
rd
Maintenance
•$2.4b of non-legacy work provides base for
future years:
>c $850m for delivery in FY21
>c $500m for delivery in FY22
>c $1.1b for delivery in FY23+
•Expect non-legacy work to deliver 3-5% EBIT
margins
Strong future pipeline
Note: The part of the NZICC rebuild funded by insurance is included in $2.4b FY20 order book

Value of Commercial and Infrastructure work done
(A$b)
FY18FY19FY20FFY21FFY22F
44
46
48
110
92
95
Market outlook
Positioning Australia businesses for market downturn of c20%
20
Residential Approvals (#)
FY18FY19FY20FY21FFY22F
AU Historical and Forecast
232k
188k
Key:CommercialInfrastructure
Source: Bis Oxford, FB Management Estimates. These are our base case estimates for FY21, though we acknowledge that there
is a lot of uncertainty over the outlook and that actual activity levels may be materially different.
169k
129k
129k
41
86
41
98
-24%
-9%
-15%
Overall
•Outlook is uncertain, influenced by unemployment,
govt. spending, inward migration and COVID-19
clusters
Residential
•57% of AU revenue, key driver of AU profitability
•FBU base case is for residential approvals to decline
c25% in FY21, then stabilise in FY22
•Low interest rates, government stimulus remain
supportive, WFH driving renovation activity
Commercial / Non-residential
•29% of AU revenue
•FBU base case is for commercial work put in place to
decline c15% in FY21, weighted to downside, then
stabilise in FY22
Infrastructure
•14% of AU revenue
•FBU base case is for infrastructure work put in place
to decline c10% but most resilient sector, then to
grow steadily
Fletcher Building Full Year Results Presentation | © August 2020

Australia
Laminex, Fletcher Insulation turnaround momentum; margin focus
21
Fletcher Building Full Year Results Presentation | © August 2020
Laminex and
Fletcher
Insulation
Tradelink
Pipes
•Continue momentum in Laminex through customer traction on refreshed product range, Compact
decorative surface launched
•Well-positioned for online trading amid pandemic with Laminex digital delivering online volume growth,
>$100m sales transacted through ecommerce in <12 months
•Fletcher Insulation improving earnings through targeted segmental performance and operating efficiencies
•Insulation single site manufacturing and focus on lowest cost to manufacture delivering efficiencies
•Automation and capability improvements in manufacturing businesses
•Key growth initiatives including continued SME growth, civil expansion momentum
•SME focus has driven 3% share growth over past 3 years in network plumber / builder segments
•Footprint optimised, store/showroom upgrades continue
•Oliveri bathroom product range expanded
•Investing in backbone and customer-facing systems
•Iplex project delivery and manufacturing efficiency
remains market-leading
•Rocla Emu Plains and Gailes site closures
•Rocla divestment recommenced, expect this to be completed through FY21
Stramit
•Product ranges extended - Infiniti and SharpLine
•Good momentum in sheds
•New website driving customer visits
Tradelink virtual renovation consultation

Fletcher Building
Full Year Results Presentation 2020
Agenda
1. ResultsOverview Ross Taylor
2. Positioning for FY21 Ross Taylor
3. Financial Results Bevan McKenzie
4.Strategy and Outlook Ross Taylor

Income statement
Profit impacted by COVID-19, provisions and restructuring costs
23
Reported results
NZ$m
Jun 2019
12 months
Jun 2020
12 months
Change
$m
Revenue8,3087,309(999)
EBITDA723530(193)
EBIT before significant items from continuing operations549160(389)
Significant items(94)(276)(370)
EBIT from continuing operations455(116)(571)
Lease interest expense-(69)(69)
Funding costs(116)(80)36
Tax (expense)/benefit(80)81161
Non-controlling interests(13)(12)1
Net earnings from discontinued operations net of tax(82)-82
Net earnings/(loss)164(196)(360)
Basic earningsper share (EPS – cents)19.2(23.5)(42.7)cps
Dividends declared per share (EPS – cents)23.0-(23.0)cps
Fletcher Building Full Year Results Presentation | © August 2020

•Gross cost-out benefit in FY21 c$300m, split evenly
between COGS and SG&A
•Rapid payback on c$160m cash costs
•Cost-out benefits offset by expected market decline
•Closed Rocla sites to be developed and sold in FY21-22
•USPP 2012 exit reduces interest by c$17m p.a.
•Right-sizing cost base:
>1,500 redundancies
>Operational footprint and office space rationalised
•Rocla restructuring and impairment of assets on
closed sites
•USPP Make Whole: cost of early USPP 2012 exit
•Cash costs mainly consist of redundancies, site exits
(onerous leases, make good), USPP Make Whole
payment
Significant items
Major restructuring programme to respond to market slowdown
FY20-21 restructuring programmeKey Focus Areas
24
Fletcher Building Full Year Results Presentation | © August 2020
Significant items
NZ$mFY20FY21FTo t a l
Right-sizing cost base18790277
Rocla5959
USPP Make Whole3030
Total27690366
Cash flow timing
NZ$mFY20FY21FTo t a l
Right-sizing cost base59101160
Rocla41216
USPP Make Whole-3030
Total63143206
Benefits

Cash flow
Strong cash flows delivered despite challenging trading conditions
25
NZ$m
Jun 2019
12 months
Jun 2020
12 months
Change
$m
EBIT from continuing operations before significant items549160(389)
Depreciationand amortisation174370196
Lease principal and interest payments-(240)(240)
Provisions and other(42)182224
Trading cash flow before working capitalmovements681472(209)
Working capital movements(96)93189
Trading cash flow from continuing ops excl. legacy Construction and significant items585565(20)
Discontinued operations14-(14)
Legacy Construction cash flow(270)(186)84
Significant items(20)(63)(43)
Trading cashflow3093167
Add: Lease principal payments-171171
Less: cash tax paid(28)-28
Less: funding costs paid(128)(77)51
Cash flows from operatingactivities153410257
Free Cash Flow from continuing operations excluding legacy Construction269269-
Note: Legacy Construction cash flow includes Building and Infrastructure projects
Free Cash Flow = Trading cash flow less capex less cash tax, excluding M+A activities
Fletcher Building Full Year Results Presentation | © August 2020

Working capital
Cash flow supported by close management of working capital
26
Key working capital metrics (days)
As at
Jun 2019
As at
Jun 2020
Change
(days)
Debtor Days40.739.01.7
Inventory Days74.275.1(0.9)
Payables Days47.946.9(1.0)
Materials and Distribution total cycle67.067.2(0.2)
Cash flow working capital movements continuing ops excl. legacy
Construction and significant items
NZ$m
Jun 2019
12 months
Jun 2020
12 months
Change
$m
Residential and Development(27)5077
Construction excluding legacy(6)1622
Debtors289567
Inventories(54)(1)53
Creditors(37)(67)(30)
Cash flow working capital movements(96)93189
Fletcher Building Full Year Results Presentation | © August 2020
Cash Flow Working Capital Movements (NZ$m)
Key Working Capital Metrics - Materials and Distribution Total Cycle (days)

•FY20 capex spend reduced by $70m as a cash
preservation measure through COVID-19
•Capex programme focused on enabling investments
for strategy, especially digital, manufacturing
efficiency and operating capacity, product & service
innovation, sustainability, eg:
>PlaceMakers digital programme
>Firth ready-mix trucks and plant replacement
>Quarry and Cement heavy mobile-equipment
>WWB land secured in Tauranga
Capex
Reduced spend but ongoing focus on key areas of strategy
27
124
3
32
65
8
$232m
Capex by Markets (NZ$m)
NZ Core
Residential and
Development
Construction
AustraliaCorporate
Fletcher Building Full Year Results Presentation | © August 2020
•FY21 capex c$175-200m, includes $50m for next
phase of WWB plant
•Prudent reduction is mainly in maintenance capex,
leveraging solid investments in prior years
•Preserving investment in key strategic projects,
esp. sustainable manufacturing and digital
FY21 Capex
FY20 Capex

218
497
44
565
128
147
186
240
77
47
63
Net Debt
Jun-19
Reclassification
to lease liabilities
FY19 final
dividend
payment
Repurchase of
shares
Legacy projectsCapexFunding costsOtherTrading cashSignificant items
cash
Net Debt
Jun-20
28
Net debt
Strong trading cash flows supporting net debt position
Net Debt: Jun-19 to Jun-20 (NZ$m)
2
1
Opening debt restated from $325m to now include debt hedging activities
2
Other includes Minority distribution of $9m and Hedging/FX on debt of $15m, make whole adjustment of $30m, partly
offset by divestments/asset disposals of $6m
Fletcher Building Full Year Results Presentation | © August 2020
1

0.4x
0.9x
FY19FY20
29
Leverage
Leverageof 0.9x is below bottom end of target range
Leverage (Net Debt / EBITDA)
1
Target
range
2.0x
1.0x
1
Fletcher Building Full Year Results Presentation | © August 2020
1. Due to material impact of FX movements on balance sheet value of debt in recent months, the Group will use hedged
value of debt in its leverage calculation – i.e. Net Debt includes impact of CCIRS derivatives. FY19 has not been restated
as historic impact of debt hedging on leverage ratio has been relatively limited (c0.1x).
•Good cash flow performance means leverage ratio
(Net Debt / EBITDA) remains below target range of
1.0x-2.0x
•Includes impact of construction provisions, which
increased Jun-20 leverage by 0.2x
•Expect to remain at lower end of leverage range,
continued preference for conservative balance
sheet metrics

100100
16
149
459
525
400
13
14
FY21FY22FY23FY24-25FY26+
Capital NotesUSPPBank SyndicateOther
Funding
Strong maturity profile $1.3b liquidity after USPP payment
30
Debt Maturity Profile at Jun-20 (NZ$m)
•Undrawn credit lines of $525m and cash of $1.1b as at
30 June 2020
•$350m USPP debt repaid in Jul-20 (interest $17m
lower p.a.)
•Syndicated banking facility renegotiated in 1H20,
establishing new 3 and 5-year tenor
•Lender amendments enable more favourableterms
for covenant testing to the end of calendar 2021 if
required
1
NZ$m
Facilities
30 Jun 20
Drawings
30 Jun 20
Syndicate925400
USPP809809
Capital Notes365365
Other2727
Total2,1261,601
1
Includes CCIRS component and excludes fair value hedge component
Fletcher Building Full Year Results Presentation | © August 2020
•Chart does not include $350m USPP debt repaid post
balance date

Summary
Strong balance sheet and cash flows, focused on margin
31
Fletcher Building Full Year Results Presentation | © August 2020
•$1.3b liquidity
•0.9x leverage ratio
•Gross debt reduced by $1.0b
1
since Jun-18 (incl. USPP 2012
exit)
•Exit of high-cost USPP debt and
other debt reduces interest
costs c$20m
•Strong tenor in funding lines
•Covenant waivers provide
certainty through to Dec-21
•Operating cash flows strong,
despite COVID-19 impact on
earnings
•Focus on working capital
delivering ongoing cash release
•Working capital cycle reduced
from 71.3 days to 67.0 days
since Jun-17
•Capex rapidly and sensibly
reduced while maintaining key
investments
•At HY20, Concrete and core
Building Products delivering
year-on-year margin expansion
•Moved decisively to reset costs
in anticipation of reduced
market activity, well organised
and continue to remain vigilant
to market movements
•FY21 focus on margin through:
>Locking in benefits of cost
reset
>Pricing discipline
>Cost to serve / segment
profitability
>Additional property and
supply chain savings
Balance SheetCash FlowMargin
1
Excludes $400 million syndicate drawn in March 20 recognised in cash balances to support liquidity

Fletcher Building
Full Year Results Presentation 2020
Agenda
1. ResultsOverview Ross Taylor
2. Positioning for FY21 Ross Taylor
3. Financial Results Bevan McKenzie
4.Strategy and Outlook Ross Taylor

FY21 and beyond -strategy and focus remain unchanged
Remain well positioned to execute strategy
33
1. Strengthen
and grow the
NZ core
3. Stabilise
Construction
4. Turnaround
and grow
Australia
•Complete the historical Construction order book
•Continue to build out the “go forward” lower risk/higher margin order book across all Construction
business units
•Continue to upskill the business and improve overall operating disciplines and consistency
2. Profitable
growth in
Residential and
Development
•Continued focus on operational excellence and driving profitability
•Complete the fix of underperforming businesses
•Market share growth through customer service performance, product innovation and adding logical
adjacencies
Fletcher Building Full Year Results Presentation | © August 2020
•Continued performance across residential business
•Progressively build apartment capability and volumes
•Grow Clever Core adding external customers and a broader product range
•Pipeline of industrial land development supporting a minimum of c$25m p.a. ongoing profits
•Portfolio rationalisation and associated business sales
•Strong focus on driving top line growth, operational performance and margin improvements
•Market share growth through customer service performance, product innovation and adding logical
adjacencies

FY21 outlook
34
Fletcher Building Full Year Results Presentation | © August 2020
•Business reset for market downturn of c25% in NZ and c20% in Australia
•Expect stronger first half compared to second half as economies slow, unemployment rises
•However, the year remains very uncertain
•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
•We remain well-positioned to implement our strategy

Fletcher Building
Full Year Results Presentation 2020
Appendix

Value of Commercial and Infrastructure work done
(A$b)
FY16FY17FY18FY19FY20F
38
38
44
46
48
95
88
110
92
95
FY16FY17FY18FY19FY20
6,627
7,318
7,636
8,687
9,118
6,022
6,200
8,342
8,403
8,688
FY16FY17FY18FY19FY20F
Industry context New Zealand and Australia
Residential Consents (#)
NZ Historical
Value of Commercial and Infrastructure work put in place
(Nominal $m)
Key:CommercialInfrastructure
36
29k
30k
33k
35k
37k
Key:HousesApartments
Retirement
Units
Townhouses
Residential Approvals (#)
FY16FY17FY18FY19FY20
AU Historical
239k
169k
232k
188k
Key:HousesApartments
Townhouses
222k
Key:CommercialInfrastructure
Source: Statistics NZ, Infometrics, Bis Oxford
Fletcher Building Full Year Results Presentation | © August 2020

30%
20%
15%
20%
10%
5%
Group revenue by market
NZ
Residential
NZ
Commercial
NZ
Infrastructure
FBU Revenue by Market (%)
AU
Infrastructure
AU
Commercial
AU
Residential
37
Fletcher Building Full Year Results Presentation | © August 2020

•Strong volumes and operating performance
in plasterboard, insulation and laminates
outside of the NZ lockdown period
•Pipes volumes and performance impacted
by subdued infrastructure activity,
aggressive competition and wet first quarter
•Steel challenging trading conditions
exacerbated by NZ lockdown period and
declining global steel prices impacting
inventory valuations
•Divisional cash flow lower but cash
conversion was 83%, up from 61% in FY19
•Capex spend includes $22m on new WWB
plant at Tauranga
38
NZ$m
Jun 2019
12 months
Reported
Jun 2019
12 months
pro forma
1
Jun 2020
12 months
Gross Revenue
1,3141,3141,173
EBITDA
2
177214140
EBIT
2
16016787
Trading Cash Flow
2
157157125
ROFE
3
%
22%24%13%
Capex
555553
Cash Conversion
4
64%61%83%
Building Products (ex Steel) EBIT
2
127132101
Steel EBIT
2
3335(14)
Domestic board volumes (m
2
)
-4%
Domestic laminate sales (m
2
)
-10%
Pipe volumes (t)
-11%
Steel volumes (t)
-15%
Resi, 42%Com, 28%Infra, 30%
Divisional Exposure
Building Products
Results overview
Fletcher Building Full Year Results Presentation | © August 2020
1
Jun 2019 12 months pro forma is Jun 2019 12 months reported adjusted for IFRS 16
2
Before significant items
3
EBIT/Closing Funds
4
Cash conversion = FCF/EBIT

39
NZ$m
Jun 2019
12 months
Reported
Jun 2019
12 months
pro forma
1
Jun 2020
12 months
Gross Revenue
1,596
1,5961,471
EBITDA
2
114
161132
EBIT
2
104
11585
Trading Cash Flow
2
9898117
ROFE
3
%
35%46%41%
Capex
232321
Cash Conversion
4
72%65%113%
PlaceMakers revenue
-7%
Mico revenue
-8%
Distribution
Results overview
Divisional Exposure
Resi, 79%Com, 21%
•Revenue growth before and after NZ
lockdown, some key stores open during
lockdown but minimal activity
•Good growth in most geographical segments
prior to lockdown, Auckland and
Christchurch lower post lockdown
•PlaceMakers Antigua Street and Helensville
sites closed
•Cash flow higher on reduced working
capital, with tight inventory and debtor
management
•Continued focus on digital transformation
programme and property upgrades
Fletcher Building Full Year Results Presentation | © August 2020
1
Jun 2019 12 months pro forma is Jun 2019 12 months reported adjusted for IFRS 16
2
Before significant items
3
EBIT/Closing Funds
4
Cash conversion = FCF/EBIT

Concrete
Results overview
40
NZ$m
Jun 2019
12 months
Reported
Jun 2019
12 months
pro forma
1
Jun 2020
12 months
Gross Revenue
802
802740
EBITDA
2
134
164148
EBIT
2
84
8974
Trading Cash Flow
2
136136100
ROFE
3
%
13%14%12%
Capex
656550
Cash Conversion
4
85%80%68%
Aggregates sales volumes
-13%
Domestic cement volumes
-5%
Ready-mix volumes
-9%
Divisional Exposure
Resi, 44%Com, 29%Infra, 27%
•Revenue growth across all business units
outside of NZ lockdown period with strong
resurgence in volumes post lockdown
•Price gains in aggregates and ready-mix
•Higher market share in Firth
•New customers in GBC, following reduced
number of competitors
•Capex investments in further quarry
resource development, additional heavy
mobile equipment for both quarries and
cement operations, ready-mix trucks and
plant replacement in Firth
Fletcher Building Full Year Results Presentation | © August 2020
1
Jun 2019 12 months pro forma is Jun 2019 12 months reported adjusted for IFRS 16
2
Before significant items
3
EBIT/Closing Funds
4
Cash conversion = FCF/EBIT

Residential and Development
Results overview
41
NZ$m
Jun 2019
12 months
Reported
Jun 2019
12 months
pro forma
1
Jun 2020
12 months
Gross Revenue
639
639466
EBITDA
2
137
13968
EBIT
2
137
13765
Trading Cash Flow
2
9595118
ROFE
3
%
21%21%11%
Capex
773
Cash Conversion
4
64%64%177%
Residential EBIT
2
848463
Land Development EBIT
2
56566
Clever Core EBIT
2
(3)(3)(4)
•Market demand strong Oct-Mar and post NZ
lockdown, continued strength in key $600k-
$900k pricing category
•Residential EBIT lower due to timing of
settlements and lockdown taking place
during key selling period (post-COVID-19
sales flowing through into FY21)
•666 (627 dwellings and 39 sections) units
sold vs 755 (735 dwellings and 20 sections)
in FY19
•Land development EBIT includes first of two
sale transactions of a Penrith site, second
site sale delayed until FY21
•Cash flow supported by receipts from FY19
Land Development transaction and delays in
land purchases
•>4 years’ supply of lots under control, of
which c67% are on balance sheet
Fletcher Building Full Year Results Presentation | © August 2020
1
Jun 2019 12 months pro forma is Jun 2019 12 months reported adjusted for IFRS 16
2
Before significant items
3
EBIT/Closing Funds
4
Cash conversion = FCF/EBIT

•Paving, earthworks, civil works halted
through Level 4 lockdown impacting
revenues
•EBIT also impacted by wet first quarter,
reducing bitumen and asphalt volumes in
Higgins
•Buildings and Infrastructure provisions of
$150m mainly from COVID-19 shutdowns
and productivity impacting both FY20 and
beyond
•Cash flow driven by Buildings projects
outflow of $213m as key projects near
completion
•Profile of work shifting to more balanced
portfolio with $2.4b of revenue backlog that
has a better margin outlook and lower and
more appropriate risk profile
Construction
Results overview
42
NZ$m
Jun 2019
12 months
Reported
Jun 2019
12 months
pro forma
1
Jun 2020
12 months
Gross Revenue
1,702
1,7021,318
EBITDA
2
68
89(107)
Underlying EBIT
2
47
513
Buildings and Infrastructure Provisions
-
-(150)
EBIT
2
47
51(147)
Trading Cash Flow
2
(210)(210)(148)
ROFE
3
% (ex Buildings)
15%17%(50%)
Capex
313132
Cash Conversion
4
NMNMNM
Revenue backlog
1,4451,4452,929
Fletcher Building Full Year Results Presentation | © August 2020
1
Jun 2019 12 months pro forma is Jun 2019 12 months reported adjusted for IFRS 16
2
Before significant items
3
EBIT/Closing Funds
4
Cash conversion = FCF/EBIT

Australia
Results overview
43
NZ$m
Jun 2019
12 months
Reported
Jun 2019
12 months
pro forma
1
Jun 2020
12 months
Gross Revenue
3,024
3,0242,802
EBITDA
2
119
208168
EBIT
2
57
7733
Trading Cash Flow
2
575749
ROFE
3
%
3%5%2%
Capex
919165
Cash Conversion
4
NMNMNM
Building Products Aus. EBIT
2
404726
Distribution Aus. EBIT
2
8157
Steel Aus. EBIT
2
11165
Divisional costs
(2)(1)(5)
•Revenue held well relative to market decline,
increase in Steel revenue, better trading in
May and June
•Building Products: strong turnaround
momentum in Laminex (new product range
and digital offering) and Insulation with
earnings growth achieved despite subdued
market activity. This performance was offset
by c$15m of losses in Rocla and Iplex as
project work did not eventuate, general
volumes dropped
•Stramit and Tradelink both had poor 2H20 as
larger project volumes dropped significantly
•Trading cash flow supported from improved
inventory management and debtor collections
but impacted by restructuring costs
•Divisional costs movement mainly due to one-
off pension valuation benefit of $2m received
in FY19
Divisional Exposure
Resi, 57%Com, 29%Infra, 14%
1
Jun 2019 12 months pro forma is Jun 2019 12 months reported adjusted for IFRS 16
2
Before significant items
3
EBIT/Closing Funds
4
Cash conversion = FCF/EBIT
Fletcher Building Full Year Results Presentation | © August 2020

---

Fletcher Building Limited
Annual Report 2020

Our Year
Performance
Contents
This Annual Report is dated 19 August 2020
and is signed on behalf of the Board by:
Robert McDonald
Director
Bruce Hassall
Chair
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. FY19 and FY20) in this Annual Report are to the financial year ended 30 June.
References to $ and NZ$ are to New Zealand dollars unless otherwise stated.
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.
To navigate this report, click the links to the left to
navigate to desired pages. You can also click the
View contents page
menu button on the top of
any page to return here.
This is an interactive PDF designed
to enhance your experience. The
best way to view this report is with
Adobe Acrobat Reader.
Other Disclosures
Governance
Financial Report
Divisional Review
Welcome to our FY20 Annual Report, which describes our business operations, approach to doing
business, performance for the year and focus for FY21. As with our previous reports, we include
commentary on our strategy, governance, environmental and social performance of our business as
well as our financial results. We welcome questions, comments or suggestions about this report to
investor.relations@fbu.com.
This report and our previous reports and presentations are available at fletcherbuilding.com.

At a Glance
nil
2019 23 cps
(
$
196m)
Net (loss)/earnings
– reported
2019
(2)
$164m
$
7,309m
Revenue
People in New Zealand,
Australia and the South Pacific
Operating sites
2019 $8,308m
2019 6.6%
2.2
%
(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 2020.
(2)
The 2019 number includes discontinued operations which were divested during the year.
(3)
Total recordable injury frequency rate. Measured by the number of recordable injuries per million hours worked. TRIFR does not include restricted work injuries.
(4)
Note that the employee engagement survey did not take place as originally planned in March 2020 because of the COVID-19 crisis.
(5)
Net Promoter Score is a measure of how satisfied our customers are with our business. Prior years have been restated to reflect inclusion of all business units in NPS programme.
Leverage ratio
(economic net debt/EBITDA)
2019
(2)
0.4x
$
410m
Cash flows from
operating activities
$
160m
EBIT before
significant items
(1)
2019 $549m
2019 $153m
(2)
(23.5¢)0.9x
Earnings per share
2019 28.8¢
EBIT margin before
significant items
(1)
Safety TRIFR
(3)
2019 5.0
5.7
Employee engagement
Customer NPS
(5)
2019 39
39
Carbon Emission
2019 1,298,266 tCO
2
e
1,132,416 tCO
2
e
71
%
(4)
2019
650
+
15,000
+
Total dividend
Fletcher Building Limited Annual Report 20201

Chair’s Report
OVERVIEW OF FY20
This has been an extraordinary and challenging year for Fletcher
Building and for our shareholders. The unprecedented events of
COVID-19 required decisive action and strong governance to ensure
the Group was positioned for both the immediate impacts and the
ensuing economic downturn. Importantly, the Group balance sheet
has remained very strong.
Ahead of COVID-19, the Group was in a good position to deliver
on its goals and execute its strategy. However, the impact of
the stringent shutdown requirements in New Zealand as well
as the health and safety measures required in Australia due to
the COVID-19 pandemic, resulted in the Group delivering a loss
attributable to shareholders of $196 million in FY20 compared to a
profit of $164 million in FY19. We had to make some very difficult
decisions this year which unfortunately included cancelling our
interim dividend and not declaring a final dividend.
As the COVID-19 pandemic unfolded in March, the Board turned
very quickly to addressing the immediate challenges of the rapidly
evolving situation. We provided oversight and support to the
executive team as they focused on the health and operational
situation affecting our people, our customers and our suppliers. In
New Zealand, we shut down almost all of our operations for a five-
week period in an unprecedented country-wide lockdown.
We then shifted to preserving the strong balance sheet and
liquidity positions we had established, as well as sizing the
Group for the lower market outlook and we took decisive action
to reduce costs which affected almost all our stakeholders. This
included suspending our on-market share buyback programme,
reducing capital expenditure, effective management of creditors
and debtors and stopping all non-essential expenditure. We also
reduced remuneration across the Board, executive team and general
managers, placed employees on the 'Bridging Pay Programme',
removed STI bonuses and unfortunately, given the uncertainty of the
situation, cancelled our interim dividend. In addition, we negotiated
more favourable terms on our lending agreements allowing us to
rely on more favourable debt covenants. We are grateful to our
shareholders, customers, suppliers and other stakeholders for
their support. Because of these actions, our strong balance sheet
withstood the uncertainty of the crisis and ended the year with net
debt of $497 million and liquidity of $1.6 billion (adjusting for the
repayment of debt on 29 July 2020 the Group's liquidity at 30 June
2020 would have been $1.3 billion). We have not needed to
raise capital.
While we took decisive action, we were unable to prevent a material
earnings impact, and unfortunately, we decided to increase our
provisions across our Buildings and Infrastructure projects in our
Construction division by $150 million. The majority of the provisions
were as a result of impacts from COVID-19 shutdowns and
productivity losses which will affect FY20 and beyond. Importantly
we are now well through the legacy work left to complete across
buildings and infrastructure and at the same time we have
successfully bid and won new work that is of much higher quality
and importantly at a significantly lower risk than the legacy work we
have just about completed. The margins and contract terms have
been strictly controlled through the bid processes to ensure they
are more balanced and appropriate. While the additional provisioning
on historical projects is disappointing, Fletcher Construction is
increasingly well set-up to deliver sustainable earnings in the future.
Dear Shareholders
Dear Shareholders
Bruce Hassall, Chair.
Fletcher Building Limited Annual Report 20202

At the same time, we were also focused on ensuring Fletcher
Building is effectively set up for the inevitable lower market activity
that will play out in FY21. This has resulted in the recognition of
significant items in FY20 of $276 million, the majority of which relate
to the difficult but necessary decisions to permanently reduce our
cost base including property footprint reduction, rationalisation
across our supply chain, logistics and procurement activities, and
regrettably a reduction in our workforce by approximately 12%. We
are also recognising impairments and restructuring costs to the
Rocla business that is being divested and the early repayment of the
some of our most expensive debt resulted in a one-off payment of
$30 million, albeit saving $17 million in interest per annum.
OUR PEOPLE
We are very proud of our Fletcher Building people who worked with
commitment to meet the Government requirements of the various
lockdown levels in New Zealand, as well as meeting the rules in
Australia, with social distancing, personal protective equipment and
contact tracing.
We responded rapidly and effectively to the impact of COVID-19,
sadly losing some talented and hard-working people through the
resizing of the business. On behalf of my Board colleagues, I would
like to express our sincere appreciation for the continued dedication
and efforts of the Group’s workforce during FY20; especially for
their focus on rising to the new challenges and during a period of
signi
ficant uncertainty.
As part of the multi-year reset of the Protect safety programme, the
Board are resolutely behind the belief that all injuries are preventable,
and the work being done by the Group to embed this and the aim to
have zero injuries every day. Fletcher Building is heading in the right
direction, driven by strong and compassionate leadership, with no
deaths and fewer serious injuries this year. A slight increase in the
Total Recordable Injury Frequency Rate, while disappointing, means
that we will continue to drive improvement in this area and ensure
our workplaces are safer.
BOARD DEVELOPMENTS AND GOVERNANCE
During the year, there were a number of changes to the Board.
Tony Carter retired from the Board at last year’s Annual Shareholders’
Meeting (ASM) while Steve Vamos resigned from the Board
in March. We thank both Tony and Steve for their considerable
knowledge, experience and contribution over their 10 and 5-year
respective tenures.
We welcomed Peter Crowley to the Board who was appointed as an
independent non-executive director in October. We continue to look
to renew and refresh the Board’s mix of skills and experience from a
broad stakeholder point of view.
ANNUAL SHAREHOLDER MEETING
This year’s ASM will be held in November 2020. We look forward to
shareholders taking the opportunity to ask questions.
LOOKING AHEAD
The Board remains firmly focused on achieving the Fletcher Building
strategy, sustainability targets and continuing our focus on the Protect
safety programme. We are confident that Fletcher Building is well-
positioned for the new market reality.
We are dedicated to improving profitability in our businesses so
that we deliver shareholder value and we continue to deliver on our
aspirations in the building solutions sector in New Zealand
and Australia.



Bruce Hassall
Chair
Fletcher Building Limited Annual Report 20203

CEO’s Report
Ross Taylor, CEO.
Fletcher Building’s FY20 performance was characterised by the
impacts of COVID-19 and the actions we took to ensure we were
well positioned to successfully navigate the market uncertainty in
FY21 and beyond.
An unwavering commitment to health and safety was a hallmark for
the year overall. As the risk of COVID-19 emerged, we moved quickly
to adopt rigorous hygiene, distancing and contact tracing protocols.
We continued our focus on the multi-year reset of our safety
programmes across the entire business. We are driving positive
change in our safety culture through our company values and a
genuine belief that all workplace injuries are preventable. In FY20,
in our drive towards zero injuries we were pleased to see we had
no fatalities and total serious injuries reduced from 15 to 8. While
our Total Recordable Injury Frequency Rate (TRIFR) 5-year trend
continues to show progress, our FY20 rate was slightly up from last
year. This only moves to strengthen our commitment and focus on
preventing all injuries.
OPERATIONAL PERFORMANCE
When we updated shareholders at the half-year, we were trading to
expectations, making good progress with operating efficiencies, and
had solid investment plans to drive growth.
Then, as COVID-19 crossed New Zealand and Australian borders
through March 2020, the resulting reduction in trading levels and
productivity had a significant impact on revenue and profitability.
In New Zealand, we had a period of nearly five weeks in March-April
where a Government-imposed ‘Level 4’ lockdown required almost
all our business to be shut down with trading restricted to essential
services only. The exceptional response of our people meant we shut
down some 400+ sites, safely, and in just three days. Revenue from
our New Zealand operations during this period was almost nil.
In Australia, the country took similar protective measures to keep its
people safe, resulting in lower revenues and productivity levels, and
higher operating costs, in the context of uncertain trading conditions.
As this was unfolding, we moved quickly taking all measures we could
to reduce costs: Board and senior management pay cuts, $70 million
reduction in capital expenditure, reduced spending in areas such
as marketing and introduced a 12-week ‘Bridging Pay Programme’
for employees.
As a result of our pragmatic and decisive action we have preserved
our operating cash flow and strong balance sheet, despite materially
reduced earnings.
FLETCHER CONSTRUCTION
We have continued to make good progress in working through the
historical construction projects, with only $0.6 billion of the original
$2.2 billion from 2018 remaining. At the same time, we have also
progressively rebuilt the operations and skills of this business.
An important part of this was the reset of our bid margins and
disciplines, and the risks we would accept on projects. Since this
reset, we have successfully won new work comprising a forward
order book of approximately $2.4 billion with a materially better
margin outlook and lower risk profile.
Through the FY20 year-end process we decided to increase the
provisions to complete our historical construction projects by
$150 million. This addresses three main issues that emerged:
COVID-19 costs and productivity losses which we have not been
able to claim under our contracts with clients, issues arising from
a handful of historically completed projects and a prudent risk
allowance across the legacy work left to complete.
While the need for additional provisioning is disappointing, I believe
Fletcher Construction is now increasingly well positioned to focus on
its future, and a sustainable and profitable earnings outlook.
FY20 OPERATING PERFORMANCE
For FY20, Group revenue was $7,309 million, down from $8,308
million in FY19.
Operating earnings before significant items from continuing
operations was $310 million and accounting for the construction
provisions reduced to $160 million compared to $549 million in FY19.
Pleasingly, cash flows from operating activities were well managed
through the COVID-19 impacts and strong at $410 million.
Fletcher Building Limited Annual Report 20204

SETTING UP THE COMPANY FOR THE
NEW MARKET REALITY
As trading and movement restrictions eased in late April, while
uncertainty remained, expert forecasts pointed to a meaningful
market decline and reduced customer demand across all our
businesses. While no one can be certain exactly how our markets
will perform in FY21 it was important to adopt a base case scenario
to plan for.
In New Zealand our baseline planning is for residential consents to
decline by around 30% from peak levels in FY20 and non-residential
activity to be impacted by a reduced private sector project pipeline.
Infrastructure shows promise of a lesser decline owing to the
Government’s commitment to ‘shovel-ready’ projects. In Australia,
a similar trend is expected though with a lesser decline in the
residential sector, given the already low level of activity by
historical standards.
Accordingly, we have reset the cost base and cash burn of the
business. This meant reducing our annual capital expenditure,
retiring our most expensive debt lines, taking operational efficiencies
in our supply chains and property footprint, forfeiting Short-Term
Incentive (STI) payments and salary increases across the Group, and
regrettably, reducing our workforce by around 1,500 positions. While
these moves were necessary, there is no doubt that this has been a
challenging time for our people. Throughout, our people have done
an exceptional job of serving our customers, safely managing our
operations, and resetting the business. We recognise their hard work
and valuable contribution to the Group in FY20.
This reset will achieve permanent annual cost savings of
approximately $300 million per annum but incurred one-off
restructuring costs contributing to significant items of $276 million.
This translated to a net loss for the Group of $196 million, compared
to a profit of $164 million in FY19.
CAPITAL MANAGEMENT
Our balance sheet remains strong with a Group leverage ratio (net
debt/EBITDA) below the bottom end of our target range and we have
total available funding of $2.1 billion as at 30 June 2020. Of this,
$525 million was undrawn with $1.1 billion of cash on hand, meaning
total liquidity for the Group was $1.6 billion. In early June we pre-
emptively renegotiated our lending covenants which will enable the
Group to rely on more favourable terms for covenant testing through
to the end of 2021. Since balance date, we made an early repayment
of US$200 million and AU$99 million of USPP notes, our most
expensive form of debt, meaning the Group's liquidity at 30 June
2020 would have been $1.3 billion.
The share buyback continues to be suspended, having acquired
29.1 million shares for a total consideration of $147 million,
representing 3.4% of issued capital.
STEADFAST FOCUS ON STRATEGY
Notwithstanding the uncertainty and disruption in our markets
and the broader economy, we remain on track and committed to
executing our strategy and achieving our vision to be the undisputed
leader in New Zealand and Australian building solutions – with
products and distribution at our core.
FY20 saw continued progress on enabling our strategies through
investments and innovation across our business. We opened
Clever Core, New Zealand’s largest offsite home manufacturing
facility, which brings unprecedented pace to Fletcher Living’s ability
to deliver housing to its developments. We were the first building
materials and construction company in New Zealand and Australia
to commit to a Science-Based Target (SBT) for carbon emissions
and were included for the first time in the DJSI Australia index,
one of only five New Zealand business in either the Australia
or Asia-Pacific indices. We opened a new concrete plant in Mt
Maunganui, committed to developing our new Winstone Wallboards
facility in nearby Tauranga and completed the retail precinct at the
iconic Commercial Bay development, which will transform Auckland’s
CBD. Following a brief pause, the sale process for Rocla continues
in a market of improving investor sentiment and is targeted to be
completed in FY21.
Looking ahead, we will continue to focus on investing significantly
in our digital and innovation strategies, while also looking for
opportunities to grow our market share either in our existing product
lines or in logical adjacencies. With our strong balance sheet
position, we expect the coming tougher market environment will
afford us even better opportunities to achieve our aspirations and
overall strategies.
CONCLUSION
Recognising the unexpected events of FY20 and ongoing uncertainty
in our markets, we made some difficult but necessary decisions
under challenging circumstances. This has ensured a strong balance
sheet for short-term market conditions and a business positioned
to help rebuild the New Zealand and Australian economies in the
longer-term; just as we have done for more than 100 years.
I want to thank our shareholders, people, customers and suppliers
for their trust and support in our business and look forward to our
next update.


Ross Taylor
CEO
Fletcher Building Limited Annual Report 20205

Strengthen
and grow the
New Zealand core
We are continuing our focus
on operational excellence
and driving profitability.
We will complete the fix of
underperforming businesses.
We will target market share
growth through customer
service performance, product
innovation and adding
logical adjacencies.
We will continue our strong
performance across the
residential business. We will
aim to progressively build
apartment capability and
volumes. Clever Core will
grow through adding external
customers and a broader
product range. Meanwhile
we have a solid pipeline of
industrial land development
which will support a
minimum of circa $25 million
p.a. ongoing profits.
We are focused on completing
the historical Construction
order book. Meanwhile we
continue to build out the "go
forward" lower risk/higher
margin order book across all
Construction business units.
We will continue to upskill the
business and improve overall
operating disciplines and
consistency.
We are rationalising our
portfolio and associated
business sales. We have
a strong focus on driving
top line growth, operational
performance and margin
improvements. We aim to grow
market share through customer
service performance, product
innovation and adding
logical adjacencies.
1.
Profitable growth
in Residential and
Development
2.
Stabilise
Construction
3.
Turnaround and
grow Australia
4.
Our Strategy
Vision: To be the undisputed leader in New Zealand and Australian
building solutions – with products and distribution at our core.
There are six key enablers of our strategy:
There are four key focus areas to our strategy:
Strong safety culture
Engaged and capable
people, with a lean
operating model
Fit for purpose
systems
and next-generation
digital capabilities
Disciplined
performance
improvement

and capital allocation
Leading
innovation
anchored in
environmental

consciousness
Customer intimacy
through channel ownership
Fletcher Building Limited Annual Report 20206

To support our strategy, we continue to focus on sustainability.
Sustainability aimsMaterial issueDivisions with most impact
Be the leader in making
sustainable building products
–The environmental footprint of our products
–Customer engagement
Building Products, 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, Distribution,
Concrete, Residential and Development,
Construction, Australia
Build healthy homes
and deliver sustainable
infrastructure
–Building design and construction
–Customer engagement
–Product inno
vation
Building Products, Distribution,
Concrete, Residential and Development,
Construction, Australia
Careful management of our
resources and emissions
–The resources w
e use as a large
manufacturer and our impact on those
resources (energy, water and materials)
–Our carbon, water and waste emissions
Building Products, Distribution,
Concrete, Residential and Development,
Construction, Australia
Partner with our supply
chain to deliver
sustainable outcomes
–Our supply chain practices and performance
–Marketing and communications
–How we work with government and with
industry partners
Corporate, Building Products, Distribution,
Concrete, Residential and Development,
Construction, Australia
Transparent environmental,
social and governance
reporting
–Our governance structures, ethics 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 aims support the
following eight United Nations Sustainable Development Goals.
Our Sustainability Aims
As a large business, we recognise our operations have an impact
on many people. Our sustainability strategy is based on what is
most important to our business, people, communities, customers,
investors and key stakeholders. Our strategy addresses the areas
where we have the most impact, and our aims and targets focus on
where our actions will lead to meaningful change – these are our
Material Issues.
The table below shows how the aims of our sustainability strategy
align to our Material Issues and the Sustainable Development
Goals most relevant to these aims. We have noted which divisions
have the most impact on achieving the aim, and we report on
performance against each aim in the following Sustainability
section of this report on pages 8-18. Page 49 of this report
summarises how we assessed our Material Issues.
Fletcher Building Limited Annual Report 20207

Sustainability
Performance
Our sustainability strategy deepens our
commitment to our people, sustainable products,
carbon emission reduction initiatives and
transparent reporting.
As part of this, we are focused on increasing the
level of transparency and disclosure within our
operations and supply chain. We have had a Code
of Conduct for our people for some years, and in
FY20 we published our supplier Code of Conduct.
This requires all our suppliers to demonstrate
transparency in the way they work, how they
treat their employees and suppliers, and their
environmental protection measures.
In FY20 we added to our governance policies by
publishing our Human Rights Policy. This includes
our commitment to put processes in place to
prevent unethical practices in our operations and
supply chains.
Our aspiration is to be the New Zealand and Australian leader
in sustainable building materials, construction and distribution.
We’ve been making meaningful and consistent changes so our
business thrives and we play our part in a sustainable future.
Fletcher Building has commenced the implementation
of a comprehensive Modern Slavery Compliance
Programme, which addresses our obligations.
We are initially adopting a risk-based approach to
implementation, focusing on specific industry and
geographical segments. We will comply with annual
modern slavery reporting obligations, which will
commence from 31 March 2021.
We also continue to proactively participate in the
Carbon Disclosure Project and the Dow Jones
Sustainability Index (DJSI). We use the insights from
these indices to inform and improve our governance
and sustainability performance. Our increased focus
on sustainability was recognised this year with the
inclusion of Fletcher Building in the DJSI Australia
index, one of only five New Zealand businesses in
either the DJSI Australia or DJSI Asia-Pacific indices.
Significant initiatives in FY20Information in this report
Protect safety p 11
Reduce the environmental impact of our products p 17, 18
Put a gender pay parity plan in placep 10, 11
Set group wide Science-Based Target for carbon reductionsp 16
Implement supplier Code of Conductp 8
Move to full Environmental, Social and Governance reportingCoverage of this report
In our FY19 report, we noted six significant initiatives for FY20. We provide an update on these
initiatives in this report.
Sustainability
to set a Science Based
Carbon Target in our
Sector, in New Zealand
and Australia
FIRST
Fletcher Building Limited Annual Report 20208

To be part of a
sustainable future, we
are working on six aims:
BE THE LEADER IN MAKING
SUSTAINABLE BUILDING PRODUCTS
–Reduce the environmental impact of
our products
–Gain sustainability product certifications
TRANSPARENT
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE REPORTING
–Improve environmental, social
and governance reporting across
our business
CAREFUL MANAGEMENT
OF OUR RESOURCES AND
EMISSIONS
–Reduce carbon emissions in
line with a below 2
o
C future
PARTNER WITH OUR
SUPPLY CHAIN TO DELIVER
SUSTAINABLE OUTCOMES
–Improv
e environmental, social
and governance reporting
within
our supply chain
SUPPORT OUR PEOPLE AND
OUR COMMUNITIES
–Protect our people from harm
–Improve diversity, equity and
inclusion in our workplace
–Provide world-class learning and
development opportunities
–Measure the impact and
opportunities we provide in the
communities where we build
BUILD HEALTHY HOMES AND DELIVER
SUSTAINABLE INFRASTRUCTURE
–Meet a consistent sustainabilit
y standard
for our construction projects
–Understand what mat
ters to our customers
and lead in providing sustainable solutions
–Innovate to sustainably grow revenue,
margin and markets
Fletcher Building Limited Annual Report 20209

Our senior leaders are engaging directly with
our people to establish the change we need.
We continue to set clear expectations on role
modelling safe behaviours and performance
against these expectations is linked to senior
leader remuneration. Across the business, our
people have been positive and open to their role
in how we can all make our workplaces safer.
Over the coming years, we will continue
to improve our practices in assessing and
managing critical risks within our operations.
We continue to use Radar, an enterprise-wide
risk management tool, to record and monitor
our health and safety performance. For FY20,
our overall Total Recordable Injury Frequency
Rate (TRIFR) increased slightly from last year.
We have also provided further transparency by
reporting separate employee and contractor
TRIFR rates. This year, serious and fatal
injuries were significantly lower. While any
injury is unacceptable, a drop from five
fatalities and 15 serious injuries (combined
total 20) in FY19 to zero fatalities and eight
serious injuries in FY20 indicates that we are
heading in the right direction.
Close to 10,000 of our people across
the Group took part in safety training
programmes this year. We also focused on
supporting and developing our people in
other areas. The wide range of learning and
development programmes we offer include
safety leadership and compliance training,
sales and customer service programmes,
Rainbow Tick training for leaders and core
management and leadership skills. As part
of providing great career opportunities for
our people we offer leadership development
programmes for all levels from emerging
leaders to executives. This year we have had
Supporting our people
and communities
Our first priority is always the health and safety of our people and
everyone we work with. This year we built upon our safety focus and
began a multi-year programme to improve safety in our workplaces
driven by the belief that all injuries are preventable.
a greater focus on female leader development
opportunities, improving how we induct
new employees into Fletcher Building, and
redesigning our core leadership programmes
to include a range of online and in-person
approaches to deliver programmes for a variety
of learning styles. We have increased the level of
feedback from participants and track outcomes
to understand the impact and effectiveness
of these programmes. We want our business
to be inclusive for everyone. We track the
diversity of our workforce at all levels and report
our diversity metrics. This includes reporting
progress on the diversity of people in leadership
roles to our Board. In FY20 we developed a
company-wide Inclusion and Diversity strategy
which will drive our progress in this area. We
have three areas of focus: fostering an inclusive
workplace culture, increasing the representation
of women across all parts of the business, and
increasing leadership opportunities for groups
that are currently under-represented: women,
Ma
-
ori, Pasifika and indigenous people.
In FY20, we undertook a detailed analysis
of pay and implemented gender pay parity
reporting processes across the Group. This has
enabled us to gain understanding, self-monitor
and report to the Board. Alongside this, we took
part in Global Women’s Champions for Change
pilot programme for gender pay gap reporting.
This pilot provided a broad cross-industry
review of male versus female pay and is being
used to develop a framework for comparable
Sustainability
5.65
FY19: 5.00
FY20
Total Recordable Injury
Frequency Rate (TRIFR)
FY19: 0.34
FY20

Serious Injury
Fr
equency Rate
0.17
We are heading in the right
direction with safety.
Fletcher Building Limited Annual Report 202010

This year we reset our commitment to health and
safety and started on our multi-year safety culture
change programme.
Following the reflections of a deep assessment of
the culture and performance of our businesses, we
developed a roadmap to help us realise a future
where
zero injuries everyday is possible. The
roadmap includes five focus areas:
1. Shifting mindsets
2. Developing our leaders
3. Enabling our frontline
4. Managing our critical risks
5.
Driving accountability
The journey this year began with senior leaders
reflecting on our own leadership and challenging our
safety beliefs. As part of this, we agreed that safety
needed to be integral to everything we do. We reset
‘Protect’ as a Fletcher Building company value along
with refining behaviours which support the value and
establish the belief: all injuries are preventable. The
link between safety performance and senior leader
remuneration was also strengthened this year. All
senior leaders are required to complete a set number
of safety leadership walks for STI eligibility.
Each division now has plans to implement the
roadmap in a way that is line-led by operational chief
executives, general managers and management. This
is supported by EHS partners, and focused on critical
risks as well as driving our TRIFR down. Some of
the activities already underway include a safety
leadership programme (for all levels from frontline
supervisor to executive), the development and
launch of life saving rules and active risk containment
activities across all our sites.
Protect Reset
Case Study
and meaningful reporting. Fletcher Building Chair Bruce
Hassall, director Barbara Chapman and CEO Ross Taylor are
three of the 55 chairs and CEOs involved in Champions for
Change, which aims to advance inclusion and diversity in
New Zealand, through identifying initiatives and actions in this
space such as closing the gender pay gap.
We recognise that women are under-represented in our
industry and are actively working to promote careers for
women. In 2020 we became corporate members of the
National Association of Women in Construction and teamed
up with GirlBoss NZ to run the first ‘speed internship’ week
for young women interested in careers in science, technology,
engineering and mathematics.
(1)
Total recordable injury frequency rate. Measured by the total number of recordable
injuries per million hours worked. TRIFR does not include restricted work injuries.
(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.
FY20FY19FY18FY17FY16
6.7
6.9
5.1
5.0
5.65
5.76
5.26
TRIFR
(1)
TotalEmployeesContractors
Serious Injuries
(2)
FY20FY19FY18FY17FY16
25
33
21
20
8
Fletcher Building Limited Annual Report 202011

Our latest startup Clever Core used Fletcher Building’s
own recruitment platform Switch Up to employ people
entering the workforce for the first time or people
wanting to retrain for a career in manufacturing and
construction. Our people at Clever Core have gained
skills in the growing field of offsite manufacturing and
have opportunities to move into management and
specialist roles.
Switch Up is an award-winning recruitment tool
developed by Fletcher Building to transform the way
we attract, select and develop first-time job seekers. It
is designed to engage young people and simplifies the
application process. Job descriptions are provided by
videos from current employees describing their lives
on the job. Instead of creating CVs, applicants create
job-seeker profiles and answer employer questions that
are designed to give applicants insight into employment
and the skills required for the job. All applicants
receive feedback, and Switch Up directs unsuccessful
applicants to resources that will help them to fill the
gaps in their profile and develop the necessary skills to
be successful.
Future workforce matched
with future-focused
manufacturing
Case Study
The programme excited participants by what our business
and industry has to offer through site tours, networking and
a ‘Dragon’s Den’ style idea pitching event. We are a finalist
in the 2020 Diversity Awards NZ for this initiative and five
of the GirlBoss participants will take part in paid internships
with us in FY21.
Within Fletcher Building we have targeted recruitment,
training and retention policies for bringing young people
into our business, and for supporting our Ma
-
ori and
Pasifika workforce.
We work with the Ministry of Social Development, Work
and Income NZ, Te Puni Kokiri, The Southern Initiative, Kiwis
Can Do, The Solomon Group, South Pacific Indigenous
Engineering Students Network and TupuToa to support
career pathways for Ma
-
ori and Pasifika people.
Our Whakatupu programme has been running for more than
five years. This programme was developed with our people
and is specifically aimed at providing leadership pathways
for our Ma
-
ori employees and to bring initiatives from the
Whakatupu cohorts into our workforce. After completing
Whakatupu, 93% of participants we surveyed reported
higher engagement at work. Participants also reported
improved business skills and a stronger connection to their
role in the business.
We provide our people with the opportunity to be nominated
for Connect – an award-winning youth focused development
and mentoring programme targeted at those new to
working or with less than 18 months work experience. The
programme is founded on Ma
-
ori and Pasifika values. While
Connect is for all employees, it recognises that Ma
-
ori and
Pasifika people are under-represented in leadership positions
and aims to build a pipeline of talent for future promotion.
TupuToa is an innovative internship programme creating
pathways for Ma
-
ori and Pasifika university students into
careers in the corporate and professional sectors. We are
proud to be a principal sponsor of the programme and this
year we supported eight internships and five interns have
taken permanent roles in our business.
This year, Fletcher Building also provided 35 additional
construction internships and 40 graduate positions in
finance, technology, construction and sustainability roles
across the business.
We have been a principal sponsor of First Foundation for
20 years. The programme is designed to give young people
the opportunity to achieve their dreams, irrespective
of socio-economic status, through financial support for
education and work experience. Often the students are
the first in their family to attend university. We provide
scholarships to five students each year. Sponsored students
receive $22,000 over three years towards university costs
and take part in five weeks’ paid work experience per annum
to develop skills and people networks.
It is really exciting to see our latest venture
come together, being expertly guided by
a team of highly motivated young people
keen to use new skills gained through
specialist training they wouldn’t get
anywhere else. We are proud to match
this future-focused manufacturing facility
with our future workforce.
– Ross Taylor.
Supporting our people and communities (Continued)
Fletcher Building Limited Annual Report 202012

hours of learning
hours of training per person
10,250
75,800
7. 4
of our people took part in around
In FY20, over
We are proud to have maintained our Rainbow
Tick certification. This year we supported Pride
events in Auckland, Wellington and Queenstown
and expanded our Pride network to our Australian
businesses. We also adjusted our HR systems
to include a wider range of gender and
pronoun options.
Employees in New Zealand, Australia and the
South Pacific Islands have access to financial
support through the Fletcher Building Employee
Educational Fund (EEF). Between 1 April 2019 and
31 March 2020, the EEF assisted 644 employees
and dependants with further education and tuition,
and a further 182 dependants with development
initiatives, such as Spirit of Adventure and Outward
Bound adventures. Support totalled over $5.8
million. Employees in New Zealand can also access
the Fletcher Building Employee Welfare Fund
(EWF) which supports our people in the event of
death, disability or financial hardship resulting from
unexpected medical events. This year, hardship
applications relating to COVID-19 were also
considered. In total, the fund supported our people
to a total of more than $352,000 between 1 April
2019 and 31 March 2020 and a further $152,000
in response to COVID-19 hardship situations. The
EWF also provided $446,500 to support Employee
Assistance Programme services and Health and
Wellbeing initiatives for employees. Both the EEF
and EWF are independent entities of Fletcher
Building. We sincerely thank both the EEF and
EWF for their generosity and support which make
a substantial difference to our people.
The past year brought us a new common challenge in health
and wellbeing: COVID-19. Our people responded quickly,
restricting travel and large gatherings by early March, and
implementing self-managed isolation protocols for returning
travellers and individuals potentially exposed to the virus.
A critical risk approach was taken, with all businesses
implementing mandatory controls and routinely evaluating their
implementation and effectiveness. We achieved 99% verification
that all businesses and sites had the required controls in place
which included contact tracing, provision for distancing, robust
cleaning and hygiene practices and educational systems. In
addition, we monitored and supported over 400 of our people
who had potential exposures and possible symptoms from
March through to June 2020 and continue to mitigate our risk in
line with Government recommendations.
We were also acutely aware
of the effects of the New
Zealand lockdown and
economic uncertainty in New
Zealand and Australia from
COVID-19 on mental health
and wellbeing.
In response, we launched
a mobile phone COVID-19
Support Hub app. The Hub
app was downloaded by
over 7,000 of our people.
It proved a valuable
communication tool providing
an easy place to find business
updates, payroll help,
financial help, and general
wellbeing advice, particularly
while New Zealand was in
lockdown and workplaces
were shut. The Hub app was
also used to connect people
to government help lines,
expert advice or simply a
volunteer to talk through what
they were experiencing. The
app is generously funded by the Employee Welfare Fund and
we plan to adapt it as a one-stop shop for company information
and real-time updates for our people.
Alongside this, we provided everyone at Fletcher Building
access to former All Black and mental health champion Sir John
Kirwan's mental wellbeing app 'Mentemia'.
Supporting our
people’s health &
wellbeing during
COVID-19
Case Study
Fletcher Building Limited Annual Report 202013

Careful management of our
resources and emissions
39%
Waste percent
diverted from landfill
We understand the urgent need to address carbon
emissions, and as part of that commitment we
are the first company in our sector in Australasia
to publish a Science-Based Target (SBT) for
carbon reduction for scope 1 (direct) and scope 2
(indirect) emissions. Our target was independently
verified by the SBT Initiative in December 2019.
We report our carbon emissions every year to the
Carbon Disclosure Project (CDP).
In FY20, scope 1 and scope 2 carbon emissions
were 847,643 tCO
2
e and 284,773 tCO
2
e,
respectively. The combined total of 1,132,416
tCO
2
e is a reduction of 1.3% from FY19. FY19
emissions were low due to a six-week mill
breakdown at Golden Bay Cement, which
represents around 50% of Fletcher Building’s
emissions. In FY20, emissions from our
New Zealand businesses were unsually low due
to the COVID-19 'Level 4' lockdown and operating
restrictions in April and May in other New Zealand
Sustainability
As a leading construction, building products manufacturing and
distribution business, a key aim of our sustainability strategy is careful
management of our resources and emissions.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
FY20FY19FY18FY17FY16
Emissions (tCO
2
e)
Combined scope 1 & 2 emissions
Scope 1 emissions
Scope 2 emissions
Combined scope 1 and 2 carbon emissions
*Figures exclude International Division.
operations. The Australia division, which largely
continued operating as normal, had an overall
reduction of 2.3% from FY19 largely through site
consolidation and energy efficiency.
We assess our Greenhouse Gas emissions
using the Greenhouse Gas Protocol Corporate
Accounting Standard, in accordance with
international best practice. Using this
methodology, we estimate that our scope 3
emissions were 848,025 tCO
2
e. These are the
emissions associated with the manufacture
of materials we have purchased, and services
supplied to us. Our FY20 emissions will be
externally verified in FY21.
Reducing waste to landfill remains an area of
focus, and in particular reducing waste from
construction and demolition activities, which is
a significant component of landfill waste in both
New Zealand and Australia. Reducing the waste
we generate and applying ‘circular economy’
principles to use waste from one industry as
a raw material input for another will be key to
overall waste reduction.
We put these principles into place in the
design of our new Winstone Wallboards plant
which is planned to reduce manufacturing
waste by 90%. We continue to have zero
waste to landfill from our Oliveri business and
we worked collaboratively with other New
Zealand businesses as part of the XLabs Circular
Economy Lab, organised by Auckland Tourism,
Events, and Economic Development (ATEED).
At XLabs we focused on taking waste out of the
life cycle of medium density fibreboard (MDF).
MDF is strong, inexpensive material made from
waste wood fibre and is commonly used in
making kitchen, bathroom and office furniture,
but it is not easily reprocessed. We are now
pursuing a number of options with our
Innovation team.
In FY20 our waste to landfill was 26,442t and
diversion from landfill was 16,787t. This equates
to 39% diversion from landfill which exceeds our
target of 30%. Further waste reduction is a goal
for FY21.
Fletcher Building Limited Annual Report 202014

Our response to water and fire crises in Australia and New Zealand
We responded to the devastating impact of bushfires
in Australia with direct donations exceeding $280,000
to the Rural Fire Service (NSW), Country Fire Authority
(VIC), Red Cross (NSW Bushfire Appeal) and Salvation
Army (Disaster Appeal). We provided paid time off
work for our people to volunteer in rural firefighting
and other emergency crews to help their communities
in affected areas. In addition staff at our Rocla
Wodonga site worked over the Christmas break to
supply power poles to reconnect electricity to several
communities across New South Wales and Victoria.
In Auckland, we implemented water saving measures
in response to severe drought conditions in summer
2019-2020. Fletcher Construction’s Infrastructure
and Higgins teams have installed rainwater capture
and collection systems and the Pipeworks team
are now using UV light instead of hot water to cure
pipes, saving an estimated 160,000L of water for
one pipeline installed as part of a major transport
project. A number of our businesses including Tasman
Insulation and Winstone Wallboards already use bore
water, and we are exploring how we can supply any
excess non-potable water we have to others.
Case Study
Fletcher Living and Winstone Aggregates have been
working with Auckland’s Watercare to supply
non-potable groundwater from Three Kings quarry
to construction businesses, sites and projects
around Auckland.
Other steps are being taken to prepare for future
droughts and increase water conservation across
Fletcher Building including investigation of closed-loop
water systems in manufacturing plants and increased
rainwater storage across the Group.
Fletcher Living and Winstone Aggregates
have been working with Auckland’s
Watercare to supply non-potable
groundwater from Three Kings quarry
to construction businesses, sites and
projects around Auckland.
Fletcher Building Limited Annual Report 202015

In December 2019, Fletcher Building became the first
building materials and construction company in
New Zealand and Australia to attain an independently
verified Science-Based Target (SBT) for carbon
emissions reduction. SBTs are important because they
are based on robust climate science, and the strict
verification process ensures that the decarbonisation
target set by a company is meaningful in a global
context. SBTs also drive innovation, increase
competitiveness and demonstrate climate leadership.
Fletcher Building’s SBT is a public commitment that
we will reduce direct and indirect carbon emissions
by 30% by 2030, from 2018 as a baseline year. Our
target is in line with the Paris Agreement to limit
global warming to well below 2°C and ensures
Fletcher Building takes responsible action towards its
contribution to climate change.
We have developed carbon reduction roadmaps that
identify key initiatives over the next 10 years for all
business units and are actively tracking progress of
each business unit. Some of the first carbon reduction
activities are to increase energy efficiency in new
facilities through use of renewable energy and by
transitioning our vehicle fleet to include more hybrid
and electric vehicles. In FY20, there were a number of
Science-Based Targets
significant ongoing projects: alternative fuels and lower
carbon materials in cement manufacture at Golden Bay
Cement, the design of our new Winstone Wallboards
facility which is planned to significantly reduce carbon
emissions; and ongoing LED lighting replacement
for Tradelink stores which will reduce electricity
consumption and associated emissions by more than
40% over the next six years.
In December 2019, Fletcher Building
became the first building materials and
construction company in New Zealand
and Australia to attain an independently
verified Science-Based Target (SBT) for
carbon emissions reduction.
Case Study
Fletcher Building Limited Annual Report 202016

Better products, houses
and infrastructure
Sustainability
EPDs assess the environmental impact of
a product across the entire product lifecycle.
EPDs provide a verifiable and transparent product
assessment against an international standard and
empower our customers to make an informed
choice about the environmental impact of the
products they choose. We have nine EPDs
already published in Australia and New Zealand
and five more underway. You will find these green
products in our Fletcher Living homes.
A number of our products also hold other
sustainability certifications such as Declare labels
and Environmental Choice certifications that
are recognised within green building standards
As part of our aim to be the New Zealand and Australian leader
in sustainable building materials, we are increasing the number
of products we manufacture that hold Environmental Product
Declarations (EPDs) and other sustainability certifications.
including Green Star and Homestar. Our
environmental certifications are disclosed on our
businesses' websites.
We are active members of sustainable
construction organisations including the
Sustainable Business Council, the Sustainable
Business Network, the New Zealand Green
Building Council and the Infrastructure
Sustainability Council Australasia. We have been
working closely with these industry bodies and
Government to embed more sustainable methods
into construction as part of post COVID-19
recovery packages for the construction industry.
09
Published EPDs
05
EPDs in
development
AUSTRALASIA
Furniture, Fittings & Flooring
Licence No. 3208041
Fletcher Building Limited Annual Report 202017

Golden Bay Cement's Eversure
TM
and Everfast
TM

cements and Winstone Wallboards' plasterboards
GIB
®
were three of our earliest products to have
their full environmental impact assessed.
All hold Declare labels, Environmental
Choice New Zealand, Good Environmental
Choice Australia (GECA) or Global GreenTag
certification, and an EPD.
Declare labels are part of one of the world’s
most stringent sustainable building certification
programmes, the Living Building Challenge.
A Declare label shows, in a simple and transparent
way, several product properties including where
the product is made, its end-of-life options, and
the list of ingredients used to make it. The label
also shows whether the product is “Red List
Free”, meaning that it does not contain chemical
substances known to be harmful to the environment
or to the people using them.
Greener materials for homes and infrastructure
Environmental Choice New Zealand and Global
GreenTag are independently-run ecolabels identifying
the most environmentally friendly products, and
are recognised within both the New Zealand and
Australian Green Building Council’s rating system.
The latest addition to the certification for Golden Bay
Cement is the EPD. Simon Harper, National Sales
and Marketing Manager said: “With the EPD, we
are able to demonstrate that Golden Bay Cement
has significantly lower carbon emissions than our
competitors when measured against the same
criteria. This transparency now allows the industry
to be confident that cement from Golden Bay Cement
is utilised on their project that it results in the lowest
carbon concrete available”.
Winstone Wallboards has held an EPD for GIB
®

plasterboard for several years and used its existing
EPD as a robust baseline to design improvements for
its new Tauranga production facility that will further
reduce the environmental impact of its products.
With the EPD, we are able to
demonstrate that Golden Bay Cement
has significantly lower carbon
emissions than our competitors.
– Simon Harper.
Case Study
Fletcher Building Limited Annual Report 202018

Performance
Fletcher Living Waiata Shores
Fletcher Building Limited Annual Report 202019

Group Performance
Reported results
Year ended
June 2020
NZ$M
Year ended
June 2019
NZ$MChange %
Total revenue7,3098,308(12%)
EBIT before significant items
(1)
160549(71%)
Significant items
(2)
(276)(94)(194%)
EBIT(116)455(125%)
Lease interest expense(69)-NM
Funding costs(80)(116)31%
Earnings/(loss) before tax(265)339(178%)
Tax (expense)/benefit81(80)201%
Earnings/(loss) after tax(184)259(171%)
Non-controlling interests(12)(13)8%
Net earnings/(loss)(196)246(180%)

Basic earnings per share (cents)(23.5)28.8NM
Basic earnings per share before significant items (cents)0.436.7NM
Dividends declared per share (cents)-23NM
Cash flows from operating activities
(3)
410153168%
Capital expenditure232285(19%)
Revenue
Year ended
June 2020
NZ$M
Year ended
June 2019
NZ$MChange %
Building Products1,1731,314(11%)
Distribution1,4711,596(8%)
Concrete74 0802(8%)
Residential and Development466639(27%)
Construction1,3181,702(23%)
Australia2,8023,024(7%)
Other1011(9%)
Continuing operations7,9809,088(12%)
Less: intercompany revenue(671)(780)(14%)
Group external revenue7,3098,308(12%)
(1)
Measures before significant items 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 2020.
(2)
Significant items relate principally to restructuring charges recognised. Further details of significant items can be found in note 2 of the financial statements.
(3)
The 2019 number includes discontinued operations which were divested during the year.
Fletcher Building Limited Annual Report 202020

$
87m
$
85m
(
$
147m)
$
33m
EBITEBIT before significant items
(1)
Reported
Year ended
June 2020
NZ$M
Reported
Year ended
June 2019
NZ$M
Change
%
Reported
Year ended
June 2020
NZ$M
Pro forma
Year ended
June 2019
NZ$M
Reported
Year ended
June 2019
NZ$M
20R vs
19P
Change
%
Building Products68150(55%)87167160(48%)
Distribution67104(36%)85115104(26%)
Concrete6184(27%)748984(17%)
Residential and Development64137(53%)65137137(53%)
Construction(160)47NM(147)5147NM
Australia(133)(21)NM337757(57%)
Corporate(83)(46)(80%)(37)(38)(40)3%
Continuing operations(116)455(125%)160598549(73%)
Divested businesses-(58)(100%)-8282(100%)
Total(116)397(129%)160680631(76%)
Lease interest expense(69)-NM(69)(64)-NM
Funding costs(80)(118)32%(80)(118)(118)32%
Earnings before tax(265)279(195%)11498513(98%)
Tax benefit/(expense)81(102)179%4(133)(133)103%
Earnings after tax(184)177(204%)15365380(96%)
Non-controlling interests(12)(13)8%(12)(13)(13)8%
Net earnings(196)164(220%)3352367(99%)
Building Products
EBIT* 2020
Distribution
EBIT* 2020
Construction
EBIT* 2020
Australia
EBIT* 2020
EBIT 2019 $167m
(p)
(48%)
$
65m
Residential and
Development
EBIT* 2020
EBIT* 2019 $137m
(p)
(53%)
EBIT* 2019 $115m
(p)
(26%)
EBIT* 2019 $51m
(p)
(388%)
EBIT* 2019 $77m
(p)
(57%)
$
74m
Concrete
EBIT* 2020
EBIT* 2019 $89m
(p)
(17%)
* Before significant items.
(1)
Measures before significant items 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 2020.
Fletcher Building Limited Annual Report 202021

Group Overview
In FY20 the Group reported external revenue from continuing
operations of $7,309 million, compared to $8,308 million in the
prior year. EBIT before significant items from continuing operations
was $160 million, compared to $549 million reported in the prior
year. Group net earnings from continuing operations were a loss of
$196 million, compared to a profit of $246 million reported in the
prior year. Cash flows from operating activities were $410 million,
compared to $153 million in the prior year.
Prior to March, the Group had traded largely in line with
expectations, with good performances in several businesses
(especially Concrete, core Building Products, Residential &
Development, and Laminex Australia) offset by weakness in Steel
and in the pipes businesses in both New Zealand and Australia.
In New Zealand, a ‘Level 4’ lockdown to control COVID-19 required
the Group to close almost all of its local operations from 25 March to
28 April. The Group moved rapidly to reduce costs and preserve cash
flow and balance sheet strength, with measures including: reducing
Board and executive remuneration; cutting non-essential spend in
areas such as travel and marketing; establishing a 3-month ‘Bridging
Pay Programme’ for employees, supported by the government
wage subsidy; daily monitoring of cash collections; reducing FY20
capital expenditure by approximately $70 million; and deferring
some residential land purchases. With almost no revenue, the
cost control measures enabled the Group to reduce its loss in
New Zealand in April from an ordinary monthly cost run-rate of
approximately $100 million to an unaudited EBIT loss before
significant items of $55 million.
As COVID-19 restrictions eased through May and June, the
New Zealand businesses experienced a gradual ramp-up of
operations and mixed levels of trading activity, with revenue
generally between 80% and 100% of pre-COVID-19 expectations.
Those core businesses exposed to the residential finishing trades
generally performed better in the ramp-up period than those focused
on earlier stage civil and infrastructure work. Residential house sales
were strong through May and June, though with settlement dates
generally scheduled for FY21. Productivity on construction projects
were adversely impacted, especially on commercial sites, due to
social distancing health measures.
In Australia, while there was no hard lockdown, activity levels were
also impacted by government-imposed measures to contain the
spread of the virus. This resulted in revenue at around 90% of
pre-COVID-19 expectations through 4Q20, which adversely impacted
productivity and together with additional costs impacted margins
across the division’s manufacturing and distribution operations.
Overall, the reduced trading levels and lower productivity
resulting from the pandemic restrictions had an adverse impact of
approximately $200 million on EBIT before significant items.
In addition to this, the FY20 result was impacted by a $150 million
increase in provisions on the historical construction projects.
Three factors led to the increased provisions. Around 50% was
due to reduced productivities on key legacy projects, which were
significantly disrupted by COVID-19 in FY20, and with ongoing
challenges expected in FY21 across supply chains and project
resourcing. Around 20% of the additional provisions was due
to issues which have arisen on a small number of historically
completed projects. The final 30% consists of a prudent risk
provision across the portfolio of legacy work.
While this additional provisioning is disappointing, the division
continues to make progress in its reset. The costs to complete
the legacy project work across the Buildings and Infrastructure
businesses has reduced from approximately $2.2 billion in February
2018 to approximately $600 million currently, and the division’s
forward order book has been rebuilt to comprised $2.4 billion of
new work with a materially better margin outlook and significantly
lower and more appropriate risk profile.
In response to an expected market downturn arising from the
COVID-19 pandemic, the Group moved to decisively reset its cost
base in FY20. This included a reduction in its operational footprint,
including the exit of some offices, warehouses, and manufacturing
sites, and ceasing some unprofitable product lines. Regrettably,
an expectation of lower market activity also resulted in a reduction
of Group headcount by around 1,500 roles. This, together with the
completion of the Australia ‘P100’ cost-out programme, significant
manufacturing site closures associated with the disposal of the
Rocla business, and make whole costs from the early repayment
of USPP notes has resulted in total restructuring costs for the
Group (recognised as significant items) in FY20 of $276 million.
The key feature of the Group’s FY20 result was the significant impact of the COVID-19
pandemic in the latter part of the financial year. Trading levels, operating productivities and
earnings were materially affected across the Group from March to June as governments put in
place measures to contain the spread of the virus. Positively, cash flows were well-managed
and strong through this period, and as a result the Group has maintained a strong balance sheet
and liquidity position at year-end.
Fletcher Building Limited Annual Report 202022

The Group’s funding costs for the year decreased by 32% to
$80 million, resulting principally from lower debt levels following
$650 million of debt repayments since June 2018. A tax benefit of
$81 million in FY20 compared to a tax expense of $102 million in
the prior year.
Basic earnings per share from continuing operations were (23.5)
cents in FY20, compared to 28.8 cents in the prior year. Adjusting
for the impact of significant items, earnings per share from
continuing operations were 0.4 cents, compared with 36.7 cents
in the prior year.
GROUP CASH FLOWS
Cash flows from operating activities were $410 million, compared
to $153 million in the prior year. The cash flow result was achieved
despite a material reduction in earnings as a result of COVID-19. This
reflects the Group’s ongoing focus on working capital efficiency
as well as the specific cash preservation measures undertaken
through the final quarter of the year. Close management of
customer collections resulted in a $95 million inflow from
receivables for the year, partly offset by a $67 million reduction in
creditors positions.
In Construction, the ongoing cost of completing the legacy
Buildings projects resulted in trading cash outflows of $213 million
in FY20 compared to outflows of $257 million in the prior year.
Capital expediture cash flows from continuing operations were
$240 million in FY20, compared with $285 million in the prior
year. The lower level in FY20 reflects a decision to reduce capital
expenditure in the fourth quarter of the year by $70 million relative
to pre-COVID-19 expectations. The Group’s focus on cash and
balance sheet also resulted in a reduction of residential land
purchases relative to pre-COVID-19 expectations.
FUNDING
Total available funding as at 30 June 2020 was $2,126 million.
Of this, $525 million was undrawn and there was an additional
$1,104 million of cash on hand, meaning total liquidity for the
Group at 30 June 2020 was $1,629 million.
On 30 June 2020, the Group announced its intention to make an
early repayment of US$200 million and AU$99 million of USPP
notes. The repayment was on 29 July 2020 from the Group’s
cash reserves and reflected a decision to retire the Group’s most
expensive source of debt. Repayment of the notes will reduce the
Group’s funding costs by $17 million in FY21. After taking account
of foreign exchange and interest rate derivatives held in respect
of these notes, the repayment amount made was $350 million.
Adjusting for this prepayment, the Group’s liquidity at 30 June 2020
would have been $1.3 billion.
The Group’s gearing at 30 June 2020 was 12.3% compared with
7.2% at 30 June 2019.
The Group’s leverage ratio (net debt / EBITDA) at 30 June 2020 was
0.9 times compared with 0.4 times at 30 June 2019.
The average maturity of the Group’s debt at 30 June 2020 is 4 years
(excluding the USPP notes prepaid on 29 July 2020) and the hedged
currency split is 36% Australian dollar; 63% New Zealand dollar; and
1% spread over various other currencies.
Approximately 46% of all borrowings have fixed interest rates
with an average duration of 2.2 years. Inclusive of floating rate
borrowings, the average interest rate on the debt (based on year-end
borrowings) is 3.7%.
NZ IFRS 16
For the year ended 30 June 2020, the Group’s financial statements
are prepared in accordance with the new lease accounting standard
NZ IFRS 16, adopted from 1 July 2019. In prior years, lease costs
were fully reported in EBIT. Under NZ IFRS 16, the two components
of lease costs are reported separately: (1) the depreciation of
right-of-use assets is reported in EBIT and (2) the deemed interest
portion of the lease liability is reported in lease interest expense. The
pro forma effect of NZ IFRS 16 in the prior year was a $49 million
favourable impact on EBIT and a $15 million adverse impact on net
earnings. Financial tables in this Annual Report (where indicated)
show both the reported result for the prior year, as well as a pro
forma restatement of the prior year to illustrate the impact of
NZ IFRS 16 had it been applied and to allow for a like-for-like
comparison. Commentary on the divisional operating performance
compares principally with the pro forma results for the prior year.
OUTLOOK
The Group has undertaken a thorough cost reset process to prepare
for an expected market downturn of c25% in New Zealand and
c20% in Australia. The first half of FY21 is expected to be stronger
than the second half of the year, as the economic impact of the
COVID-19 pandemic flows through to activity levels. However, the
outlook is uncertain, and the Group will remain vigilant to macro
factors and movements in forecasts. The Group has a strong balance
sheet and is well-positioned to implement its strategy with the ability
to react to market activity as needed.
Fletcher Building Limited Annual Report 202023

15%
Building
Products
Winstone Wallboards
Laminex New Zealand
Tasman Insulation
Iplex New Zealand
Humes
Fletcher Steel
Altus JV
% of Revenue
Divisional Review
The Building Products division reported gross revenue of $1,173 million,
which was 11% lower than the prior year. EBIT before significant items was
$87 million, compared to $167 million in the prior year.
Prior to March, the businesses primarily selling into residential finishing trades (Winstone Wallboards,
Tasman Insulation, Laminex) were trading at or near record volumes, and delivering year-on-year margin
improvements. The Steel and Pipes businesses had experienced softer volumes, driven by subdued
infrastructure sector activity combined with aggressive competition in key product categories. Margins
in the Steel business were further impacted by significant inventory devaluations due to declining global
steel prices.
The Building Products businesses almost entirely ceased operations during the COVID-19 ‘Level 4’
lockdown, resulting in a $22 million loss in April. In May and June, volumes returned strongly in the
residential finishing trades, driven by pent up demand from work ceased during the lockdown, while
volumes in other segments settled at around 80% of pre-COVID-19 Levels.
The division recognised $19 million in significant items in the year, reflecting headcount reductions
and rationalisation of certain sites and product lines to prepare for an expected lower level of
market activity.
Trading cash flow for the division of $125 million was $32 million lower than the prior year.
Capital expenditure in the year was $53 million, in line with the prior year spend of $55 million.
$22 million of the FY20 spend related to the initial investment in the new Wallboards plant in Tauranga.
Future Focus
The division’s focus continues to be in four key areas: product innovation and adjacencies;
improvements in customer experience; operating efficiencies and enhanced pricing disciplines.
The division has continued to invest in ensuring its manufacturing facilities are the most
efficient in market, including material investments in the first phase of the new Wallboards
facility and the commissioning of a HDPE mobile extrusion pipe plant in Iplex. Expanded
product ranges were introduced in Pipes, Easysteel and Laminex, and Dimond launched an
innovative mobile roll-to-roof system. New products introduced in prior years continue to deliver
growth, with GIB Weatherline, GIB Barrierline, PVC-O, and Tasman Insulation’s building wraps
range all trending well.
Several digital initiatives have been launched to improve efficiency and customer experience,
notably in Winstone Wallboards and Laminex, while Tasman Insulation continues to introduce
new channels to market. The division’s pricing capability and discipline continues to improve,
with the Pipes and Steel businesses exiting FY20 with stronger margins as a result of initiatives
to address areas of price leakage.
$
1,173m
REVENUE
Fletcher Building Limited Annual Report 202024

Building Products
Financial Summary
Year ended 30 JuneReported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Gross revenue1,1731,3141,314(11%)
External revenue9221,0131,013(9%)
EBIT before
significant items
(2)
87167160(48%)
Significant items
(3)
(19)(10)(10)(90%)
Funds678692723(2%)
Trading cash flow125157157(20%)
Capital expenditure5355554%
Building Products
EBIT before significant items
(2)
Year ended 30 JuneReported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Building Products101132127(23%)
Steel(14)3533(140%)
Total87167160(48%)
(1)
The pro forma figures for the year ended 30 June 2019 have been restated for comparative
purposes to include the impact from NZ IFRS 16.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess the
performance of the business and has been derived from Fletcher Building Limited's financial
statements for the period ended 30 June 2020.
(3)
Details of significant items can be found in note 2 of the financial statements.
Fletcher Building Limited Annual Report 202025

Distribution
PlaceMakers
Mico
Forman Building Systems
Divisional Review
The Distribution division reported gross revenue of $1,471 million,
which was 8% lower than the prior year. EBIT before significant items
was $85 million, compared to $115 million in the prior year.
Prior to March, the division was delivering revenue growth of 2% above the prior year. Gross margins
were steady despite continued competitive intensity especially in large commercial projects. PlaceMakers
was growing in all geographical segments, except for the Lower South Island. Mico experienced growth
across their three key customer segments; Commercial, Group Home Builders and SME.
Both the Mico and PlaceMakers businesses were deemed essential services during the COVID-19
‘Level 4’ lockdown with the businesses selecting branches in larger centres or those servicing essential
projects to remain open at significantly reduced capacity. Trading volumes were limited with April revenue
down 86% on the prior year, resulting in an $11 million loss in April. In May and June, the businesses
experienced mixed volumes, with declines in the Auckland and Christchurch regions while other regions
were steady on the prior year.
The division recognised $18 million in significant items relating to redundancies, the closure of the
PlaceMakers Antigua Street (Christchurch) and Helensville (Auckland) sites and associated fixed asset
impairments. Prior to March, the businesses had begun a workforce optimisation initiative that was
accelerated in May and June to ensure staffing levels in the branch network and support offices were both
efficient and sized for expected future market conditions.
Trading cash flows for the division was $117 million, $19 million up on the prior year. This was the result of
reduced working capital, with tight management of both inventory and debtors throughout the year.
Capital expenditure in the year was $21 million, compared to $23 million in the prior year, with investment
centred on property upgrades and digital innovation.
Future Focus
Ensuring competitive customer offerings, ease of doing business and market leading service
remain core to the division’s strategy.
PlaceMakers released its Trade App in April, allowing customers greater flexibility in how they
choose to interact with PlaceMakers, including the ability to order product on line, through click
and collect and select enhanced delivery options. Further development of our digital capability
remains a key priority with further e-commerce offerings, including the trade portal and
refreshed consumer e-commerce platform, to be launched in FY21.
PlaceMakers have also begun grouping branches into regional hubs, with these structures now
in place in mid Canterbury, Christchurch, Nelson-Marlborough and North Auckland. Hubs will
provide greater consistency for customers who transact with multiple branches and enable
efficient delivery via a combination of centralised distribution centres and branch deliveries.
18%
% of Revenue
$
1,471m
REVENUE
Fletcher Building Limited Annual Report 202026

Year ended 30 JuneReported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Gross revenue1,4711,5961,596(8%)
External revenue1,4401,5521,552(7%)
EBIT before
significant items
(2)
85115104(26%)
Significant items
(3)
(18)--NM
Funds209251300(17%)
Trading cash flow117989819%
Capital expenditure2123239%
(1)
The pro forma figures for the year ended 30 June 2019 have been restated for
comparative purposes to include the impact from NZ IFRS 16.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited's
financial statements for the period ended 30 June 2020.
(3)
Details of significant items can be found in note 2 of the financial statements.
Distribution
Financial Summary
Fletcher Building Limited Annual Report 202027

Concrete
Winstone Aggregates
Golden Bay Cement
Firth Industries
Divisional Review
The Concrete division reported gross revenue of $740 million, 8% lower
than the prior year. EBIT before significant items was $74 million, a
decrease of $15 million or 17% compared to the prior year.
Prior to March the division was tracking strongly with revenue growth of 2% and earnings in all
businesses tracking ahead of the prior year. Firth saw a strong lift in sales price, combined with a gain in
market share. In Golden Bay Cement, domestic cement volumes lifted following the exit of a competitor
from the imported cement market. Winstone Aggregates earnings were up year on year due to strong
price increases and a favourable shift in product mix. The Tamahere quarry purchased in March 2019
completed its first full year of operations under our ownership with a strong EBIT return.
The Concrete businesses ceased operations during COVID-19 ‘Level 4’ lockdown. This resulted in lower
earnings in March and a $13 million loss in April. The division experienced a strong recovery of activity in
May and June across all segments and products, with revenue up 2% on the prior year.
The division recognised $13 million of significant items reflecting headcount and property rationalisation
decisions in line with our expectations of lower future business volumes. These initiatives include a
refinement of our quarry network and the right-sizing our ready-mix network.
Trading cash flow for the division was $100 million, compared with $136 million in the prior year,
reflective of lower earnings during the final part of the financial year, while working capital management
remained solid.
Capital expenditure for the division was $50 million. Investment in the year included further quarry
resource development to meet forecast demand, additional heavy mobile equipment for both
quarries and the cement operation, while Firth continued its programme of ready-mix truck and
plant replacement.
Future Focus
The division’s strategic focus continues to be on projects that support long-term capability,
reduce carbon emissions, improve customer service experience – especially through digital
connectivity – and ensure cost competitive manufacturing and supply chain positions.
Firth is now progressing with a digital channel to market and we expect initial implementation
in FY21. Masonry will further rationalise its manufacturing network to drive efficiencies in line
with plans already in progress. Product development continues in masonry with new sized
paving options and more environmentally friendly honed surface finishes.
Golden Bay Cement’s major cost reduction initiative - the Tyre Derived Fuel initiative - a project
in conjunction with Ministry for the Environment, enabling energy cost improvements and
reduction in carbon emissions will complete the construction phase in January 2021 with the
first tyre derived fuel to be generated in February 2021. The business continues to work on
the development of a low carbon and sustainable cementitious material which will reduce the
carbon footprint for Concrete.
9%
% of Revenue
$
740m
REVENUE
Fletcher Building Limited Annual Report 202028

Year ended 30 JuneReported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Gross revenue74 0802802(8%)
External revenue503549549(8%)
EBIT before
significant items
(2)
748984(17%)
Significant items
(3)
(13)--NM
Funds607646656(6%)
Trading cash flow10 0136136(26%)
Capital expenditure50656523%
(1)
The pro forma figures for the year ended 30 June 2019 have been restated for
comparative purposes to include the impact from NZ IFRS 16.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited's
financial statements for the period ended 30 June 2020.
(3)
Details of significant items can be found in note 2 of the financial statements.
Concrete
Financial Summary
Fletcher Building Limited Annual Report 202029

Residential and
Development
Residential
Land Development
Clever Core
Divisional Review
The Residential and Development division reported revenue of $466 million,
which was 27% lower than the prior year. EBIT before significant items were
$65 million, compared to $137 million in the prior year. The decline in both
revenue and EBIT was largely due to a reduction in houses sold and less
properties taken to profit in the Development business.
The Residential business experienced a mixed market throughout FY20. Activity was slow during the first
quarter of the financial year, but from mid-October until mid-March there was a notable increase in sales
demand and firmer pricing in both the Auckland and Christchurch markets.
The Development business completed the first of two transactions on the former Crane Copper Tube site
in Sydney contributing EBIT of $12 million, with the second site transaction being delayed until 1H21.
Clever Core, the division’s new panelisation business, officially opened in October 2019. The plant has
produced 40 panelised houses for Fletcher Living’s developments in Auckland. The production and
installation rate of panels achieved late in the year are trending well for the future success of
this business.
From March until early May, house sales were negatively impacted by the COVID-19 ‘Level 4’ lockdown.
The absence of sales during these important sales months, as well as delays in the completion of houses,
led to 666 units being taken to profit in FY20 compared to 755 units in the prior year.
May and June house sales activity was strong, although most of these sales will settle in the new
financial year. The demand for Auckland houses in the $600k – $900k price range remains especially
strong, reflecting interest from both first-time buyers and investors.
Trading cash flow for the division was $118 million compared to $95 million in the prior year. Cash flow
in the current year included a $50 million receipt related to the Wiri land development sale that was
completed in FY19, and which offset the lower FY20 earnings.
Funds employed reduced from $651 million at 30 June 2019 to $604 million, mainly due to the Wiri
settlement. Land stocks in the division has remained constant, with a total of 2,596 lots (either finished
sections or development land) held on balance sheet at the end of FY20. The business has a further
1,323 residential lots under unconditional purchase agreements to be delivered over the next four years.
Future Focus
We continue to focus on delivering houses at mid-market price points in Auckland across a
range of developments and have a commitment to continuing to broaden the types of homes
offered, including more apartments. In Christchurch the near-term focus is increasingly on the
One Central development and supplementing it with opportunities in growth corridors.
Clever Core will increase the volume of houses it supplies into Fletcher Living and look to
commence sales to external customers in FY21.
The Development business has a good pipeline of Fletcher Group land available for industrial
development that has arisen from recent restructuring decisions, including the divestment of
the Rocla business in Australia.
6%
% of Revenue
$
466m
REVENUE
Fletcher Building Limited Annual Report 202030

Residential and Development
Financial Summary
Year ended 30 JuneReported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Gross revenue466639639(27%)
External revenue460639639(28%)
EBIT before
significant items
(2)
65137137(53%)
Significant items
(3)
(1)--NM
Funds604651651(7%)
Trading cash flow118959524%
Capital expenditure37757%
Residential and Development
EBIT
Year ended 30 June Reported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Residential638484(25%)
Land Development65656(89%)
Clever Core(4)(3)(3)(33%)
Total65137137(53%)
(1)
The pro forma figures for the year ended 30 June 2019 have been restated for comparative
purposes to include the impact from NZ IFRS 16.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess the
performance of the business and has been derived from Fletcher Building Limited's financial
statements for the period ended 30 June 2020.
(3)
Details of significant items can be found in note 2 of the financial statements.
Residential and
Development
Fletcher Building Limited Annual Report 202031

Construction
South Pacific
Brian Perry Civil
Higgins
Buildings
Infrastructure
Divisional Review
The Construction division reported gross revenue of $1,318 million, 23%
or $384 million lower than the prior year. EBIT before significant items of
$(147) million compared to $51 million in the prior year.
Prior to March, Higgins was trading well with expectations of a strong finish to the year. Brian Perry had a slow
start to the year but was benefiting from demand for urgent Watercare work with respect to the Auckland
drought and urgent runway work at Auckland Airport. Completion of the legacy Buildings and Infrastructure
projects was continuing to expectations and within the provisions set in February 2018. Rebuild work had
commenced on the New Zealand International Convention Centre, which was affected by a fire in October
2019, with insurance responding to loss and damage on this project.
The 'Level 4' lockdown significantly impacted all of the division’s businesses as paving, civil and building works
ceased. This included the Commercial Bay project in downtown Auckland, which was within days of meeting
agreed opening dates on the retail and office precincts. COVID-19 also resulted in the cancellation of Auckland
Airport’s Domestic Jet Facility project, where Fletcher Construction had been part of a successful joint venture
bid. Construction activities resumed under 'Level 3' in late April, however productivities were impacted by a
gradual ramp-up in site work as well as social distancing protocols, especially on commercial building sites.
Through the year-end review process, it was decided to increase provisions to complete the historical
construction projects by $150 million. Three factors led to the increased provisions. Around 50% was due
to reduced productivities on key legacy projects, which were significantly disrupted by COVID-19 in FY20,
and with ongoing challenges expected in FY21 across supply chains and project resourcing. Around 20% of
the additional provisions was due to issues which have arisen on a small number of historically completed
projects. The final 30% consists of a prudent risk provision across the portfolio of legacy work.
While this additional provisioning is disappointing, the division continues to make progress in its reset. In
February 2018, the division had work to complete of approximately $2.2 billion for major projects across the
Buildings and Infrastructure businesses, almost all of which comprised large, higher-risk, fixed price projects.
Currently, approximately $600 million of this work remains to be completed. Over this period, the division has
also rebuilt its forward order book to comprise $2.4 billion of new work with a materially better margin outlook
and lower and more appropriate risk profile. This order book includes primarily: smaller, self-perform work in
Higgins and Brian Perry; national and local maintenance contracts; a strong pipeline of road pavement work;
and the 10-year Watercare Enterprise Framework Agreement, providing an estimated $1.3 billion backlog of
work for Brian Perry and Infrastructure over 10 years.
In FY20, the division recognised $13 million of significant items, consisting mainly of redundancy and property
rationalisation costs.
Trading cash flow for the division was an outflow of $148 million in FY20, compared to an outflow of $210
million in the prior year. Cash outflows for the Buildings and Infrastructure legacy work were $186 million,
compared to $270 million in the prior year. Excluding the legacy work, trading cash for the division was an
inflow of $38 million, compared to an inflow of $60 million the prior year, with Higgins performing strongly.
The division invested $32 million in capital expenditure in FY20. 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
The priorities will continue to be to complete the remaining legacy projects within 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, with a
strengthened leadership team in place.
The division remains well positioned to tender and deliver work in the significant pipeline of
Infrastructure work announced by the Government in the transport sector and in the growing
remedial and new works in the water sector.
17%
% of Revenue
$
1,318m
REVENUE
Fletcher Building Limited Annual Report 202032

Construction
Financial Summary
Year ended 30 JuneReported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Gross revenue1,3181,7021,702(23%)
External revenue1,2611,6221,622(22%)
EBIT before
significant items
(2)
(147)5147(388%)
Significant items
(3)
(13)--NM
Funds50384832%
Trading cash flow(148)(210)(210)30%
Capital expenditure323131(3%)
Construction
EBIT
Year ended 30 June Reported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Higgins143936(64%)
Infrastructure, South
Pacific, Brian Perry
Civil & FC Buildings
(94)1211(883%)
Total
(80)5147(257%)
B+I Legacy(67)NM
Total(147)5147(388%)
(1)
The pro forma figures for the year ended 30 June 2019 have been restated for comparative
purposes to include the impact from NZ IFRS 16.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited's
financial statements for the period ended 30 June 2020.
(3)
Details of significant items can be found in note 2 of the financial statements.
Fletcher Building Limited Annual Report 202033

Australia
Laminex Australia
Iplex Australia
Rocla
Fletcher Insulation
Tradelink
Oliveri Solutions
Stramit
Building Products Australia:
Divisional Review
Distribution Australia:
Steel Australia:
The Australian division reported gross revenue of $2,802 million
compared with $3,024 million in the prior year. EBIT before significant
items was $33 million, compared to $77 million in the prior year.
The performance in the division was mixed through the year, with most businesses impacted by the sharp
decline in the residential market, which saw commencements down approximately 20% on the prior year.
Building Products Australia saw continued strong turnaround momentum in the Laminex and Fletcher
Insulation businesses, both of which grew earnings despite subdued market activity. Laminex revenue
declined 7%, however EBIT increased by 5% due to market share gains driven by new product ranges,
growth in volumes transacted through the business’s ecommerce platform, and the benefit of cost-out
initiatives. In the Pipelines businesses (Iplex-Rocla), revenue declined due to delays in key infrastructure
projects and subdued residential subdivision activity, resulting in a loss of c$15 million in these businesses.
A decision was taken through the year to divest the Rocla business, with completion of this transaction
expected in FY21.
Distribution Australia revenue was down 4% while Steel Australia revenue increased 4% with share gains
in the distributor and commercial segments. However, both businesses reported reduced earnings, as
competitive intensity placed ongoing pressure on price and margin, and Stramit was impacted by lower
sales in the shed segment. Tradelink’s focus on the small to medium network customer segment (SME)
continues to provide increased stability in revenue, despite the residential downturn. Tradelink has largely
completed its store footprint expansion, and is now focused on the showroom and branch refurbishment
programme. Stable earnings in Oliveri continued in the year as a result of favourable margin mix changes to
the bathroom product range.
The division recognised a $166 million charge to significant items during the year, relating to costs
associated with the rationalisation of its property footprint and fixed cost base, along with the reduction
of headcount.
Capital expenditure in the year was $65 million, with key investments focused on automation and capability
improvements in the manufacturing businesses and system upgrades in the distribution business.
Trading cash flow of $49 million compared to $57 million in the prior year, reflecting the cash impact
of restructuring costs recognised in FY19. Excluding the cash impact of significant items, FY20 trading
cash flow was $92 million, compared to $71 million in the prior year, reflecting focused improvements in
inventory management and debtor collections.
Future Focus
With a healthy pipeline of product and service innovation, including through improved digital
capabilities. The cost-out programme is now largely complete with focus now on key growth
initiatives. Enablers of growth include: new digital offerings through expanded digital presence
and platforms, which will build off the success of the Laminex eCommerce platform that
has now delivered >$100 million of online sales in <12 months; acceleration of new product
adjacencies, including a focus on architectural offers in Stramit, Design by Tradelink, and
compact range enhancements in Laminex; as well as a continuation of customer focus with
refined value propositions.
35%
% of Revenue
$
2,802m
REVENUE
Fletcher Building Limited Annual Report 202034

Australia
Financial Summary
Year ended 30 June Reported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Gross revenue2,8023,0243,024(7%)
External revenue2,7232,9332,933(7%)
EBIT before
significant items
(NZ$m)
(2)
337757(57%)
EBIT before
significant items
(A$m)
(2)
31
7253
(57%)
Significant items
(3)
(166)(78)(78)(113%)
Funds1,4941,6021,735(7%)
Trading cash flow495757(14%)
Capital expenditure65919128%
Australia
EBIT
Year ended 30 June Reported
2020
NZ$M
Pro forma
2019
(1)
NZ$M
Reported
2019
NZ$M
20R v 19P
Change
%
Building Products
Australia
264740(45%)
Distribution Australia7158(53%)
Steel Australia51611(69%)
Divisional costs(5)(1)(2)NM
Total337757(57%)
(1)
The pro forma figures for the year ended 30 June 2019 have been restated for comparative
purposes to include the impact from NZ IFRS 16.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited's
financial statements for the period ended 30 June 2020.
(3)
Details of significant items can be found in note 2 of the financial statements.
Fletcher Building Limited Annual Report 202035

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 CEO 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 CEO 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 and Member of the
Remuneration 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 CEO 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.
BARBARA CHAPMAN
CNZM, BCom, CMInstD
Independent Non-Executive Director
Term of office: Appointed director 1 September 2018, last elected
2018 annual meeting.
Board committees: Chair of the Remuneration Committee and
Member of the Nominations Committee.
Barbara brings extensive and diverse trans-Tasman executive
experience to the Board having served as CEO and managing director of
ASB Bank for seven years and having held a number of senior executive
roles responsible for marketing, communications, human resources,
life insurance and retail banking in New Zealand and Australia. She has
an extensive list of professional achievements to her credit, including
being named New Zealand Herald's 2017 Business Leader of the Year.
In 2019, Barbara was made a Companion of the New Zealand Order of
Merit for services to business. Barbara is the Chair of Genesis Energy
Limited and NZME (New Zealand Media and Entertainment) Limited,
and deputy Chair of The New Zealand Initiative. She is also Chair of the
APEC 2021 CEO Summit.
Fletcher Building Limited Annual Report 202036