Fletcher Building 2022 Macquarie Australia Conference

Fletcher Building Limited
Macquarie Australia Conference
Presentation
Fletcher Building Limited
Ross Taylor
Chief Executive Officer
3 May 2022

Significant NZ & Australia player, focused on the building products and
distribution sectors
1. Before significant items
FY21 External Revenue
$5.2b$2.7b
Australia
c.4,600 people
New Zealand
c.9,100 people
c.14,500 people
c.NZD$8.1 billion revenue
NZX/ASX listed: FBU
To t a l F B
Revenue
by
Market (%)
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19%8%4%
AU Residential
AU Commercial
AU Infrastructure
33%17%19%
NZ Residential
NZ Commercial
NZ Infrastructure
To t a l F B
Revenue
by
Market (%)
FY21 EBIT
1
$0.1b
FY21 External Revenue FY21 EBIT
1
$0.6b

Leading NZ sector exposures with strong market positions and brands
Building Products
$1.4b
32%
7%
#2 largest
homebuilder
800 homes p.a.
20%
$1.7b
Distribution
Concrete
Residential &
Development
Construction
140 points
of presence
Market share
1
SitesRevenue
2
Brands
$0.8b
Auckland
Christchurch
$0.7b
New Zealand
$1.4b
1. Estimates based on the markets in which we participate, e.g. SME, Commercial, Plumbing, Bathroom, Group Home Builders and Retail for
PlaceMakers and Mico
2. FY21 Gross Revenue
38%c.100
c.65
Page 3 | Fletcher Building Limited Macquarie Conference Presentation| © May 2022

Australia position smaller but scale in specific sectors
$2.8b
29%
19%221
1. Estimates based on the markets in which we participate, e.g. Plumbing distribution market for Tradelink
2. FY21 Gross Revenue, includes Rocla
74
Market share
1
SitesBrandsAustralia
Building Products
Distribution
Page 4 | Fletcher Building Limited Macquarie Conference Presentation| © May 2022
Revenue
2

Strategic goals focused on continuing to drive operational performance and
growth
Vision
Purpose
Strategic
Goals
To be the leader in New Zealand and Australian building products and solutions
Improving the world around us through smart thinking, simply delivered
Zero injuries every
day
Market leading
customer
solutions and
services
Lowest delivered
cost
Economic
performance
of each business
in industry
top quartile
Leadership in
innovation,
sustainability, and
growth via
disruption
Page 5 | Fletcher Building Limited Macquarie Conference Presentation| © May 2022

Our strategy positions us well to drive shareholder value in the short- and
long-term
Strong
enduring
financial
position and
returns
Significant
near-term
profit growth
Plans and
runway for
further
operational &
margin
improvement
Established
pipeline for
sustainable
growth
Well
positioned for
macro trends
and any
economic
cycle
0 1
0405
0203
Page 6 | Fletcher Building Limited Macquarie Conference Presentation| © May 2022

1. Significant near-term profit growth, FY23 further boosted by no
lockdowns
1. Before significant items
2. FY19 is a pro forma number adjusted for discontinued operations and IFRS16 to allow for like-for-like comparison
EBIT Margin
1
(%)EBIT
1
($m)
598
160
669
750
FY19FY20FY21FY22F
FY22F includes $105m EBIT impact due to COVID lockdowns in 1Q22
2
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7.2%
2.2%
8.2%
c.9.5%
c.10.0%
FY19FY20FY212H22FFY23 Target
+280
bps
2

2. Plans for operational and margin improvements beyond FY23
Manufacturing Automation
Continued new product
development
Network & supply chain
optimisation
Page 8 | Fletcher Building Limited Macquarie Conference Presentation| © May 2022
Digitising end-to -end supply
chain

3. Enduring financial position and returns
1.Return on Funds Employed (ROFE) is EBIT excluding significant items to average funds (net debt and equity less deferred tax asset)
2.Leverage = Net Debt / EBITDA
Page 9 | Fletcher Building Limited Macquarie Conference Presentation| © May 2022
Leverage
2
& Funding
0.4x
HY22FY22F
Target
range
2.0x
1.0x
FY20
ROFE
1
(%)
18.6%
18.7%
FY21HY22
Exceeded ROFE ≥ 15% target
12.0
18.0
18.0
FY21FY22
Interim DividendFinal Dividend
Dividends (cps)
30.0
≥ 15%
Target
Total debt facilities $1.8b, liquidity $1.3b
at HY22
$300m buyback underway, c.75% through
c.0.8-0.9x

4. Established pipeline of larger growth opportunities
Building Products -insulation building code change, Laminex NZ wood
fibre based products
Digital focus & network expansion incl. earnings accretive TUMU stores
acquisition in Distribution
Concrete -lowest carbon offer in market; scale up alternative fuels &
raw materials, & SCM, expand solutions
Scaling Laminex Australia’s innovative new product suite & Haven
Kitchens; continued Tradelink margin improvement
Residential Division growth in housing, apartments, retirement
offering & off-site manufacturing
Construction benefiting from its higher margin order book
Strong pipeline of additional opportunities under investigation
c.1,400
Residential Units Taken to Profit
+c.550
836
FY21FY24-25F
Apartments
Retirement
Residential
Investment focus
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Base capex envelope expected to average c. $200m-$250m p.a.
Above this base capex, planned larger growth opportunities
(primarily organic). Potential for above base growth investment of
c. $150m p.a. for FY23 to FY25. Target ROFE of 15%+

We are making good progress on safety and lowering our carbon
emissions
1. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries
2. Carbon Emission Intensity = FBU CO
2
Tonnes for every $1m or revenue. ISO 14064-1
3. CY21 = Calendar Year 2021, 12 months ended 31 December 2021
Safety: Good progress continues
Total Recordable Injury Frequency Rate
1
5.7
5.0
4.2
FY20FY21HY22
Sustainability: Driving 30% lower carbon from FY18
1,238
1,147 1,147
1,145
1,073
149
138
157
141
131
-
50
100
150
200
-
500
1,000
1,500
2,000
FY18FY19FY20FY21CY21
93% sites injury free
Carbon (CO
2
) Emissions (‘000 Tonnes) & Carbon Emission Intensity
2
3
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TRIFRwell below industry average
>10% sustainable reduction in emissionsfrom FY18

5. Well positioned for macro-trends; driving change through being an
innovation fast follower with ‘in-country’ advantage
ESG
Product Innovation
and solutions
Modular
Construction
Multi-
residential
Role of
Distribution
& Digital
Supply
Chain
Page 12| Fletcher Building Limited Macquarie Conference Presentation| © May 2022

NZ and Australia markets – outlook remains robust
NZ residential consenting expected to ease, though coming off high base in a capacity-constrained market
Source: MBIE (National Construction Pipeline Report 2021); Stats NZ; Infometrics, BIS Oxford Economics (Dec-21)
WPIP = Work Put In Place
Commercial & Infrastructure Work Done
(A$b)
49.7
47.4
50.5
56.8
61.5
90.7
91.1
105.6
124.1
134.2
FY20FY21FY22FFY23FFY24F
CommercialInfrastructure
Residential Work Done (A$b)
72.8
74.6
88.1
106.4
115.9
FY20FY21FY22FFY23FFY24F
Historical and Forecast
Australia:
Residential market activity expected to remain robust over the
medium term
Strong outlook for Infrastructure supported by government
investments; sustained improvement of forward market
activity in Commercial
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Commercial & Infrastructure WPIP ($b)
8,634
9,006
8,449
10,244
9,855
9,044
9,061
9,462
11,374
11,883
FY20FY21FY22FFY23FFY24F
CommercialInfrastructure
30k
35k
40k
45k
50k
FY19FY20FY21FY22FFY23FFY24F
Resiconsents well above capacity (#)
Market
forecast
NZ Capacity (FBU est.)
New Zealand:
Residential consenting activity expected to ease over medium
term - industry capacity constraints mean that work put in
place is forecast to run broadly at current levels
Committed project pipelines indicates ongoing growth across
both Infrastructure & Commercial sectors beyond FY23

Well positioned for growth in FY22 and beyond
COVID risks easing, expect operational performance improvements to feature more directly in our earnings
Robust market conditions continue
Strong pricing disciplines to cover inflation increases
Targeted working capital investments into the business as
flagged – providing supply chain resilience
Concrete & Distribution on track to deliver short term
margin targets earlier than expected
Expect ongoing improvements across balanced scorecard
Expect EBIT margins
1
c. 9.5% in 2H22
(up c. 230 bps from 7.2%
2
in 2H21)
FY22 Full Year EBIT
1
expected to be c. $750m
1.Robust market outlook for FY23 & beyond
2.COVID impacts easing – no lockdowns, open borders
3.On track to deliver group EBIT margins
1
in FY23 of c. 10%
4.Maturing investment pipeline to drive growth past FY23
FY22 operational performance
FY23 and longer term growth
1. Before significant items
2. Excluding Industrial Development to show on a like-for-like basis
Page 14| Fletcher Building Limited Macquarie Conference Presentation| © May 2022

Fletcher Building Limited
Questions
Note: xxx
Source: xxx

Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothis
documentandtheverbalorwrittencommentsofanypersonpresentingit.
Thispresentationdated3 May2022shouldbereadinconjunctionwith,andsubjectto,theexplanationsandviewsoffutureoutlookonmarketconditions,earningsandactivities
giveninthe2022InterimFinancialResults(togetherwithmanagementcommentary)publishedon16February2022.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems. A numberofnon-GAAP
financialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancial
statementsforthesixmonthsended31December2021.Yo ushouldnotconsideranyofthesestatementsinisolationfrom,orasa substitutefortheinformationprovidedinthe
FinancialStatementsforthesixmonthsended31December2021,whichareavailableatwww
.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,
shareholdersnoranyotherpersongivenanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessoftheinformationandtothemaximum
extentpermittedbyl a w,nosuchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arising
fromthispresentationoranyinformationsuppliedinconnectionwithit.
Thispresentationmaycontainforwardlookingstatements,thatisstatementsrelatedtofuture,notpast,eventsorothermatters. Forwardlookingstatementsmayinclude
statementsregardingourintent,belieforcurrentexpectationsinconnectionwithourfutureoperatingorfinancialperformance,ormarketconditions. Suchforwardlooking
statementsarebasedoncurrentexpectations,estimatesandassumptionsandaresubjecttoa numberofrisksanduncertainties,includingmaterialadverseevents,significantone-
offexpensesandotherunforeseeablecircumstances. Thereisnoassurancethatresultscontemplatedinanyoftheseprojectionsandforwardlookingstatementswillbe
realised. Actualresultsmaydiffermateriallyfromthoseprojected. Exceptasrequiredbyl a w,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonis underany
obligationtoupdatethispresentationatanytimeafteritsreleaseortoprovidefurtherinformationaboutFletcherBuilding.
Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceora recommendation.
Page 16| Fletcher Building Limited Macquarie Conference Presentation| © May 2022

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

Fletcher Building 2022 Macquarie Australia Conference
Auckland, 3 May 2022: Fletcher Building Limited will today present at the 2022
Macquarie Australia Conference. Attached is the presentation.
#Ends

Authorised by:
Chris Reid
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