Fletcher Building Trading Update

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

Fletcher Building Trading Update

Auckland, 10 November 2020: Fletcher Building today provided an update on year-
to-date trading for its 2021 financial year. Trading for the four months ended 31
October 2020 (“the period”) compared to the four months ended 31 October 2019 (“the
comparative period”) (unaudited results):
➢ Group revenues up 1%
➢ Group EBIT before significant items of $227 million, up $80 million
➢ Group EBIT margin up 2.9ppts to 8.4% due to improved operating efficiency
➢ Cash flow and balance sheet remain strong: net debt $388 million, liquidity $1.4
billion as at 31 October 2020

Group revenues for the period were 1% ahead of the comparative period, supported by
resilient trading conditions in both New Zealand and Australia, especially in the
residential sector. Revenues in the New Zealand Core were up 4%, with businesses
exposed to finishing trades particularly resilient. Demand for new houses has been
robust, with 342 units taken to profit in the Residential business, consistent with the
Group’s objective of achieving 700-800 house sales for the full year. In Construction,
the portfolio of work continues to be rebalanced to a lower-risk model, with Fletcher
Construction being preferred on further major government alliance work in the period.
In Australia, revenues were slightly lower than the comparative period, with softer
demand in the civil segment and COVID-19 restrictions impacting Victoria.

Group EBIT before significant items of $227 million was $80 million or 55% higher than
the comparative period. This was achieved predominantly through a 2.9ppts lift in profit
margins across the Group, reflecting the operational performance and efficiency
programs implemented over the last two years.

Earnings in the New Zealand Core were up 30%, led by the Concrete and Building
Products divisions. Residential and Development earnings were materially higher due
to strong house sales, while planned Land Development transactions remain on track
for completion in the remainder of FY21. Construction earnings were in line with the
comparative period. Earnings in Australia increased as cost-out benefits offset the
lower overall revenues. Corporate costs remain well-controlled and were slightly lower
than the comparative period.

Group cash flows and the balance sheet remain strong, with Group net debt at $388
million and available liquidity of $1.4 billion at 31 October 2020.

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Commenting on the year-to-date performance and expected trading conditions for the
remainder of FY21, CEO Ross Taylor said: “Through all the disruption and uncertainty of
the past year, our people have adapted and responded superbly, maintaining a focus
on delivering for our customers. We were heavily impacted in FY20 by the COVID-19
restrictions, resulting in a significant earnings loss for the Group of $196 million, so we
are pleased to have begun the new year well. As we look ahead, our customers are
pointing to volumes remaining at current levels through to the start of the new calendar
year. However, there is uncertainty in the second half of the financial year, with the
impact of broader macro-economic factors on our markets in New Zealand and
Australia not yet clear. Also, December and January are always lower trading and
earnings months for the Group. At our Annual Shareholders Meeting on 25 November
2020, we intend to provide earnings guidance for 1H21. We will update further on
trading conditions at our half-year results announcement on 17 February 2021 and at
an investor day planned for May 2021.”

Gross Revenue
($m, unaudited)
4 mths ended
31 Oct 19
4 mths ended
31 Oct 20 Change (%)
Concrete
271 287 6%
Building Products
448 465 4%
Distribution
559 575 3%
NZ Core
1,278 1,327 4%
Residential and Development
123 233 90%
Construction
503 425 -15%
Australia
1,026 967 -6%
Intercompany and other
(247) (254) -3%
Group (external revenue)
2,683 2,698 1%

EBIT before significant items
($m, unaudited)
4 mths ended
31 Oct 19
4 mths ended
31 Oct 20 Change (%)
Concrete
33 43 32%
Building Products
54 72 32%
Distribution
35 43 24%
NZ Core
122 158 30%
Residential and Development
21 43 108%
Construction
0 3 NM
Australia
24 39 65%
Corporate
(20) (16) 15%
Group
147 227 55%

EBIT margin
(%, unaudited)
4 mths ended
31 Oct 19
4 mths ended
31 Oct 20 Change (%pts)
Concrete
12.1% 15.1% 3.0%
Building Products
12.1% 15.4% 3.3%
Distribution
6.3% 7.5% 1.2%
NZ Core
9.5% 11.9% 2.4%
Residential and Development
16.9% 18.6% 1.7%
Construction
0.0% 0.7% 0.7%
Australia
2.3% 4.0% 1.7%
Group
5.5% 8.4% 2.9%

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Conference call to be held today
Fletcher Building management will host a Q&A briefing for all investors and analysts today at
12 noon NZDT / 10:00am AEDT to discuss the trading update. Participants can register for the
conference by navigating to the following link:
https://s1.c-conf.com/diamondpass/10010803-dRE0er.html
Upon registration you will be provided with the dial in number, passcode, and your unique access
PIN. To join the conference simply dial the number and enter the passcode followed by your PIN,
and you will join the conference instantly.
A replay facility will be available after the conference call:
Australia: 1800 265 784 / +61 7 3107 6325
New Zealand: 0800 886 078
Hong Kong: 800 930 639
Singapore: 800 101 3223
UK: 0800 031 4295
US/Canada: 1855 883 1031
Replay PIN: 10010803

#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