Fletcher Building confirms HY23 Results, interim dividend

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

Fletcher Building confirms HY23 Results and interim dividend

Auckland, 15 February 2023: Following the trading update on 13 February, Fletcher Building
today confirmed its financial results for the first half of FY23 and earnings guidance for the full-
year FY23. The company also announced a fully imputed interim dividend of 18.0 cents per share.

• Revenue of $4,284 million, up 5% from $4,064 million in HY22
• EBIT before significant items of $360 million, up 8% from $332 million in HY22
• EBIT margin of 8.4%, up from 8.2% in HY22
• Net Profit After Tax of $92 million (including $150 million flagged construction provisions),
46% lower than $171 million in HY22
• Cash outflows driven largely by flagged land and housing stock rebuild following drawdown
in FY21-22 partly offset by good trading cash flows from materials and distribution divisions
• FY23 EBIT before significant items forecast to be $800 million to $855 million as a result of
adverse weather impacts in New Zealand in January and February
• Fully imputed interim dividend of 18.0 cents per share declared, to be paid on 6 April 2023

Fletcher Building Chair Bruce Hassall said: “The Board is pleased to approve an Interim Dividend
of 18.0 cents per share for the six months ended 31 December 2022 to be paid on 6 April 2023.
This compares to 18.0 cents per share for the 2022 Interim Dividend. The 2023 Interim Dividend
will be fully imputed for New Zealand taxation purposes, though will be unfranked for Australia
taxation purposes.

Fletcher Building Chief Executive Ross Taylor said: “We are confident that our strategy positions
us well to continue to drive performance and deliver growth, against the backdrop of a dynamic
operating environment. We look forward to the second half of the year and to sharing the full year
results in August.”

Authorised by:
Chris Reid
Company Secretary

For further information please contact:

MEDIA
Christian May
General Manager – Group Corporate Affairs
+64 21 305 398
Christian.May@fbu.com

INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com

---

Fletcher Building Limited
Fletcher Building
Half Year Results to
31 December 2022
15 February 2023

Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothis
documentandtheverbalorwrittencommentsofanypersonpresentingit.
Thispresentationprovidesadditionalcommentonthe2023InterimFinancialResultsdated15February2023.Assuch,itshouldbereadinconjunctionwithandsubjecttothe
explanationsandviewsgiveninthatdocument.Unlessotherwisespecified,allinformationisforthesixmonthsended31December2022.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems.Anumberofnon-GAAP
financialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancial
statementsforthesixmonthsended31December2022.Youshouldnotconsideranyofthesestatementsinisolationfrom,orasasubstitutefortheinformationprovidedinthe
FinancialStatementsforthesixmonthsended31December2022,whichareavailableatwww.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,
shareholdersnoranyotherpersongivenanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessoftheinformationandtothemaximum
extentpermittedbylaw,nosuchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arising
fromthispresentationoranyinformationsuppliedinconnectionwithit.
Thispresentationmaycontainforwardlookingstatements,thatisstatementsrelatedtofuture,notpast,eventsorothermatters.Forwardlookingstatementsmayinclude
statementsregardingourintent,belieforcurrentexpectationsinconnectionwithourfutureoperatingorfinancialperformance,ormarketconditions.Suchforwardlooking
statementsarebasedoncurrentexpectations,estimatesandassumptionsandaresubjecttoanumberofrisksanduncertainties,includingmaterialadverseevents,significantone-
offexpensesandotherunforeseeablecircumstances.Thereisnoassurancethatresultscontemplatedinanyoftheseprojectionsandforwardlookingstatementswillbe
realised.Actualresultsmaydiffermateriallyfromthoseprojected.Exceptasrequiredbylaw,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonisunderany
obligationtoupdatethispresentationatanytimeafteritsreleaseortoprovidefurtherinformationaboutFletcherBuilding.
Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceorarecommendation.
Page 2| Fletcher Building Limited Half Year Results Presentation| © February 2023

Fletcher Building Limited
Agenda
1. ResultsOverviewRoss Taylor
2.Financial ResultsBevan McKenzie
3.OutlookRoss Taylor

HY23 summary
Strong first half across materials and distribution businesses, offset by softer residential and industrial sales
➔HY23 performance
➔EBIT $360m, good growth and margin in materials & distribution divisions, softer Residential house sales
➔Net earnings $92m, includes flagged construction provisions of $150m
➔ROFE 17.8%, balance sheet strong, HY23 cash flows impacted by timing of planned working capital
➔HY23 interim dividend of 18.0 cents per share, in line with HY22, fully imputed
➔Growth investments starting to lift bottom line earnings
➔Investments well advanced with c.$400m to be deployed in FY23 (total investment c$700m across FY23-26).
Continue to target ≥15% ROFEs
➔TUMU & Waipapaacquisitions deliver c.$25m run-rate EBIT in FY24; organic projects contributing from FY25-26
➔FY23 EBIT guidance now $800m to $855m
➔Very wet Jan-Feb in NZ; underlying business performance tracking well, market activity in balance of FY23 is key
driver of result
➔Positioning cost base and working capital for a softer FY24 to ensure robust margins and cashflows
Ongoing
Performance
& Growth
Note: EBIT, EBIT margin and ROFE are before significant items
Page 4| Fletcher Building Limited Half Year Results Presentation| © February 2023

HY23 results at a glance
Earnings and margin uplift driven by materials & distribution divisions, Group ROFE remains strong
7.4%
8.2%
8.9%
8.4%
Materials & Dist.Group
HY22HY23
EBIT Margin (%)
1
Revenue ($b)
Page 5| Fletcher Building Limited Half Year Results Presentation| © February 2023
EBIT
1
($m)
ROFE
1,2
($m)
HY23 trading highlights
4.1
4.3
HY22HY23
➔Materials & distribution divisionssolid trading conditions, sales
volumes in line with or slightly below 2H22 (1H22 impacted by
COVID lockdowns), effective pricing to recover input cost
inflation. Material improvement in Australia, EBIT margin 5.3%
➔Resi& Devt house sales softer in a cooler housing market, though
the business remains well-positioned at lower price points;
Industrial DevtEBIT back to usual run-rate, $16m in 1H23 ($47m
in 1H22)
➔Constructionreturn to 1Hprofitability (ex. NZICC $150m
provision), solid order book for go-forward business
➔Group ROFE remains well ahead of ≥15% target
1. Before significant items
2. Return on Funds Employed (ROFE) is EBIT excluding significant items to average funds (net debt and equity less deferred tax asset)
Note: Measures before significant items are non-GAAP measures used by management to assess the performance of the business & have been derived from
Fletcher Building Limited’s financial statements for the period ended 31 December 2022. Details of significant items can be found in note 2.1 of the financial
statements
256
332
339
360
Materials & Dist.Group
HY22HY23
18.7%
17.8%
HY22HY23

HY23 results at a glance
Cash flows lower on rebuild of land and housing stocks, as flagged; balance sheet remains strong
➔Materials & distribution divisionsgood 1H23 trading cash flows
of $206m
➔Resi& Devt1H23 rebuild of land and housing stocks following
significant drawdown in FY21-FY22; market valuation of land
remains c.$350m higher than book value
➔Constructionimpacted by $28m legacy cash outflow
➔Group leverage ratio moves to 1.25x as flagged, driven by Resi&
Devtstock rebuild and growth capex
➔Balance sheet remains strong: $1.1b liquidity
Leverage (Net Debt/EBITDA
1
)
0.61x
1.25x
FY22HY23
HY23 trading highlights
Trading Cash Flow ($m)
87
(107)
HY22HY23
Page 6| Fletcher Building Limited Half Year Results Presentation| © February 2023
1. Before significant items

HY23 results at a glance
Interim dividend of 18.0 cents per share declared, fully imputed
➔Net Earnings of $92m includes significant Items of $154m (vs
$43m in HY22) predominantly due to construction provisions
➔Net earnings before sig items slightly lower due to funding costs
as flagged
➔Interim dividend of 18.0cents per share, fully imputed, to be paid
on 6 April 2023
EPS (cps)
Interim Dividend (cps)
26.3
21.0
25.9
11.7
Before sig itemsBasic EPS
HY22HY23
214
171
203
92
Before sig itemsAfter sig items
HY22HY23
Net Earnings ($m)
HY23 trading highlights
18.0
18.0
HY22HY23
Page 7| Fletcher Building Limited Half Year Results Presentation| © February 2023

Balanced Scorecard
Good progress continues on driving safety culture 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
Safety: continued good progress
Total Recordable Injury Frequency Rate
1
5.7
5.0
3.4
3.16
FY20FY21FY22HY23
➔24% reduction in TRIFR vs HY22
➔94% of sites injury free
➔>2,000 Risk Containment Sweeps
➔>8,000 hours of Power Up sessions with frontline
94%
(925) sites
injury free
Sustainability: 30% lower carbon by 2030, net zero by FY50
1,238
1,120
149
128
-
50
100
150
200
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY18CY22
CO
2
Emissions
(‘000 Tonnes)
CO
2
Intensity
Carbon (CO
2
) Emissions (‘000 Tonnes) and Carbon Emission Intensity
2
Member of
S&P
Sustainability
Yearbook
➔Committed to enhanced sustainability strategy and targets
➔61% of product revenue from products with sustainability
certifications
➔c.47% coal substitution with alternative fuels in cement operations
& solar energy projects in Australia
➔CDP rating raised to A-; DJ Sustainability
TM
Australia Index member
Page 8| Fletcher Building Limited Half Year Results Presentation| © February 2023

Divisional performance summary
EBIT
1
& margin improvements across most divisions, Resi& Devt margins return to more normal levels
EBIT
1
Margin
15.2%
HY22: 14.3%
6.7%
HY22: 6.2%
14.1%
HY22: 12.5%
5.3%
HY22: 3.5%
1.4%
HY22: (0.7)%
22.4%
HY22: 35.2%
Distribution
Building
Products
Concrete
Construction
3
Residential and
Development
Australia
2
Division
1. Before significant items
2. Australia HY22 Gross Revenue and EBIT before significant items excludes Rocla business divested during FY22
3. Construction EBIT before significant items is prior to elimination of intra-group margin on the construction of WWB plant at Taurikoof $4m in
HY23 and $5m in HY22
HY23 trading highlights
EBIT
1
$74m
HY22: $61m
$65m
HY22: $54m
$118m
HY22: $96m
$82m
HY22: $48m
$9m
HY22: $(5)m
$49m
HY22: $112m
Page 9| Fletcher Building Limited Half Year Results Presentation| © February 2023
➔Building Products, Distribution and Concrete robust trading
volumes in residential finishing trades & commercial, civil sector
softer; good recovery of inflation through price; new products and
solutions plus efficiency investments delivering results
➔Australiasignificant EBIT margin uplift to 5.3%; improved product
mix, digital & pricing strategies, manufacturing efficiencies, and well-
controlled cost base; market activity broadly stable though softening
in distribution businesses
➔Residential & Development EBIT reflects softer housing market and
lower Ind Devt EBIT ($16m 1H23 vs $47m 1H22); 1H23 house prices
10% below the peak in late 2021, EBIT margins returning to more
normal levels, annualised volumes easing to c.800pa, strong focus
on balance sheet management
➔Constructionreturn to 1H profitability, despite delay impacts from
labour constraints & wet weather. Order book quality remains
strong; two more legacy projects completed, only P2W (2H23) &
NZICC (FY25) to go

Fletcher Building Limited
Agenda
1. ResultsOverviewRoss Taylor
2.Financial ResultsBevan McKenzie
3.OutlookRoss Taylor

Income Statement
EBIT
1
improvement from materials & distribution offsetting lower Resi& Devt earnings
Income statement
NZ$m
Dec 2021
6 months
Dec 2022
6 monthsVar
Revenue4,0644,2845%
EBITDA5045407%
EBIT before significant items3323608%
Significant items(43)(154)(258%)
EBIT289206(29%)
Lease interest expense(30)(30)-
Funding costs(22)(39)77%
Tax expense(63)(34)(46%)
Non-controlling interests(3)(11)267%
Net earnings17192(46%)
Basic earnings per share before sig items (cents)26.325.9(2%)
Basic earningsper share (cents)21.011.7(44%)
Dividends per share (cents)18.018.0
HY23 income statement
Page 11| Fletcher Building Limited Half Year Results Presentation| © February 2023
➔EBIT
1
growth ahead of revenue reflects solid performance after
COVID-impacted 1H22; supply chain pressures also easing
➔Input cost inflation remains elevated: average c.10% vs. 1H22,
higher levels in certain areas (e.g. freight, diesel, coal, gypsum).
➔Effective pricing saw GM% lift 180bps in materials & distribution
➔Significant items: primarily from $150m increased costs to
complete complex NZICC rebuild
➔Funding costs $39m on higher borrowings; continue to expect
FY23 funding costs of $85m-$90m
➔Tax expense lower due to impact of sig items
➔Interim dividend of 18cps, in line with 1H22, fully imputed, 69%
pay-out ratio; reflects ongoing confidence in underlying
performance of business
1. Before significant items

Cash flow
Trading cash flows lower, primarily from rebuild of land and housing stocks as flagged
Cash flow
NZ$m
Dec 2021
6 months
Dec 2022
6 months
EBIT before significant items332360
Depreciation and amortisation172180
Lease principal payments and lease interest paid(119)(127)
Provisions and other(12)(19)
Trading cash flow before working capital movements373394
Working capital movements excl. legacy projects(296)(457)
Trading cash flow excluding legacy & significant items77(63)
Legacy projects cash flow35(28)
Significant items cash flow(25)(16)
Trading cash flow87(107)
Add: lease principal payments8997
Less: cash tax paid-(154)
Less: funding costs paid(19)(39)
Cash flows from operating activities157(203)
HY23 cash flows
Page 12| Fletcher Building Limited Half Year Results Presentation| © February 2023
➔Materials & distribution divisions: good 1H23 trading cash flows
of $206m, continue to expect broadly stable working capital in
FY23, then unwind in FY24
➔Resi& Devt: 1H23 rebuild of land and housing stocks following
significant drawdown in FY21-FY22; expect material cash inflow
in 2H23, pragmatically pausing some developments. Market
valuation of land at Dec-22 remains c.$350m higher than book
value
➔Constructionlegacy cash outflow primarily from NZICC
➔Cash tax payments recommenced in NZ with $154m compared to
nil in HY22; total FY23 cash tax payments of c.$190m expected
➔Strong 2H23 cash flow expected from higher earnings and
inventory unwind in materials, distribution & Resi& Devt

Cash flow working capital movements
NZ$m
Dec 2021
6 months
Dec 2022
6 months
Residential and Development(107)(270)
Construction excluding legacy projects(24)(10)
Materials and Distribution Divisions
•Debtors3575
•Inventories(122)(58)
•Creditors(78)(194)
Cash flow working capital movements excl. legacy(296)(457)
Working Capital
Land & housing stocks rebuild in Resi& Devt, plus reduction in creditor balances in materials & distribution
HY23 working capital
➔Resi& Devtrebuild of land stocks (c.$200m) and housing
inventories (c.$100m) as flagged, expect unwind in 2H23 on
higher house sales and pause in WIP build in some developments
➔Construction unwind of some advance positions in South Pacific
and Higgins
➔Materials & Distribution Divisions
➔Solid debtor collections; debtor days slightly up 1.5 days to
40.7 days at 31 Dec 22; bad debt levels remain low
➔Seasonal inventory build in Building Products & Australia will
unwind in 2H23; expect overall inventory levels in materials &
distribution to hold broadly flat Jun-23 vs. Jun-22, before
unwinding in FY24 –as flagged
➔Creditor balances were elevated through FY22 on resilience
stock purchases; balances now returning to more normal
levels; no change in underlying supplier credit terms
Page 13| Fletcher Building Limited Half Year Results Presentation| © February 2023

NZICC
Key program milestones being met but complexity of rebuild means costs expected to exceed insurance proceeds
Page 14| Fletcher Building Limited Half Year Results Presentation| © February 2023
➔Highly complex rebuild of New Zealand International Convention Centre and Hobson Street Hotel project (NZICC) following fire in October 2019
➔Good progress on site: all demolition work complete, steelwork remediation well advanced, roof installation commenced, first twocar park levels
completed and handed over to the client, procurement well-advanced, key program milestones being met.
➔Expected completion early 2025 or better –in line with prior guidance
➔Additional $150m provision for costs to complete project (as announced on 16 Dec 2022) means costs now expected to exceed Contract Works and
Third Party Liability Insurance policy limits
➔Significant complexity of remediation approach and rebuild environment, esp. due to remediation of water & mould damage to steelcoatings
➔Greater number of project resources being required to complete rebuild works
➔Inflation of labour, trade & material costs
➔Insurances that were put in place on the project had not envisaged the rebuild complexity, cost escalations, and earlier COVID delays
➔Cashflow impact of additional provision is expected to be c.20% 2H23, c.50% FY24, c.30% FY25. Provision is tax deductible.

Capex
Base capex well-controlled, above base capex investments well underway to deliver growth opportunities
Capex and Investments
NZ$m
Dec 2021
6 months
Dec 2022
6 months
Base capex8096
Above Base: growth capex-96
Above Base: WWB new plant6357
Less: Proceeds on disposal of PPE(1)(5)
Net Capex142244
TUMU building supply centres in Distribution
1
-50
Water Filters Australia in Oliveri business Australia-6
Other121
Investments1257
Total Capex and Investments154301
➔Base capex i
➔‘Above Base’ capex and investments –1H23
➔Growth –1H23 investments focused on Laminex wood panels,
Steel distribution, Frame & Truss, plus Tumu acquisition
➔WWB plant –project on time & budget, commissioning 2H23
➔‘Above Base’ capex and investments –looking ahead
➔Growth –total c $700m FY23-26 at ≥15% ROFE in logical
adjacencies. Of this investment, expect c.$400m in FY23 –incl.
Tumu and Waipapawhich deliver c. $25m run-rate EBIT in
FY24. Remaining projects contributing EBIT from FY25-FY26
➔WWB plant –remaining capex c. $70m in 2H23
Investment Focus
Page 15| Fletcher Building Limited Half Year Results Presentation| © February 2023
1. Additional $10m Working Capital adjustment was paid in Jan-23

Net debt
Investment initiatives underway, tax payments and returns to shareholders prominent features of HY23
1. Other includes: Significant items trading cash $16m, Treasury shares $11m, FX/Hedging adjustment $(8m) & Net minority contribution $(15m)
2. Trading cash flow before working capital movements
Net Debt: Jun 22 to Dec 22 (NZ$m)
670
1,431
394
58
270
38
119
39
301
154
172
4
Net Debt
Jun-22
Inventory -
Manufacturing
& Distribution
Resi & Dev't
Working
Capital
Construction
Working
Capital
Other
Working
Capital
Funding
Costs
Net
Capex &
Investments
Tax paidDividendOtherTrading
Cash
Net Debt
Dec-22
1
2
Page 16| Fletcher Building Limited Half Year Results Presentation| © February 2023

Leverage
Increase to lower end of target range as flagged, balance sheet continues to be in a strong position
Leverage (Net Debt / EBITDA
1
)
0.61x
1.25x
FY22HY23
Target range
2.0x
1.0x
Leverage and Balance Sheet
➔Group leverage higher at HY23 due to cash flows phasing, esp.
Resi& Devt –as flagged
➔Continue to expect leverage at Jun-23 to be toward the lower end
of the Group’s 1.0x-2.0x range
➔Strong balance sheet supports ongoing ‘Above Base’ growth
projects –well positioned to continue operating in target 1x-2x
range through any economic cycle
Page 17| Fletcher Building Limited Half Year Results Presentation| © February 2023
1. Before significant items

Funding
Group is well-funded with long-dated debt maturity and strong liquidity of $1.1b
➔Undrawn credit lines of $785m and cash on hand of $272m as at
31 Dec 22; total liquidity of $1.1b
➔Syndicate facility of AUD$674.5m (NZ$720m) raised in Oct 22 lifting
liquidity to support investment
➔Group gearing (after hedging) 28.3% at 31 Dec 22, compared with
15.1% at 30 Jun 22
➔Average maturity 3.4 years; average interest rate on debt is 5.2%
Debt maturity profile ($m)
Debt facilities and drawings
NZ$m
Facilities
31 Dec 22
Drawings
31 Dec 22
Syndicate1,645860
USPP456456
Capital Notes359359
Other2828
Total2,4881,703
280
69
62
1,271
56
78
80
55
90
456
200
720
725
FY23FY24FY25FY26FY27+
Capital NotesUSPPBank SyndicateOther
Page 18| Fletcher Building Limited Half Year Results Presentation| © February 2023
86
789

Dividend
Interim dividend of 18.0 cents per share in line with prior period
1.Pay-out ratio is expressed as a percentage of Net Earnings excluding Significant Items. policy to pay dividends in the range of 50% to 75% of
net earnings before significant items and having regard to available cash flow.
2. Dividend Reinvestment Plan will not be operative for this dividend
➔69% pay-out ratio
1
➔Dividend fully imputed for NZ taxation purposes
➔Interim dividend to be paid on 6 April 2023
2
➔Well-positioned for sustainable pay-out in the range of 50% to 75%
of net earnings before significant items
18.0
18.0
HY22HY23
Interim dividend (cps)
Page 19| Fletcher Building Limited Half Year Results Presentation| © February 2023
Dividend

FY23 outlook –Residential & Development
Targeting c.800 p.a. sales in FY23 and into FY24, tight management of funds
Page 20| Fletcher Building Limited Half Year Results Presentation| © February 2023
1. Total amount of units take to profit plus units with conditional and unconditional sales contracts written on them
2. Market value of land on balance sheet is as at Dec 2022 and includes cost to develop land to serviced lots, where applicable
3. Land pipeline = lots under our control, consist of a mix of raw land, land under development and finished sections
➔Resi& Devt has c.388 sales agreements in place at end Jan-23.
Targeting total FY23 sales of c.800 units. Top end of Group’s
$800-$855m EBIT range assumes 800 units sold in FY23
➔Tight focus on managing land and housing inventories: work on
certain developments has paused or slowed, limited new land
agreements entered into. Expect material cash inflow in 2H23
➔The business remains well-placed to perform in a softer
environment: houses priced at the lower/mid end of the
market; independent valuation of land on balance sheet at
Dec-22 is c.$350m higher than book value
➔Total land pipeline
3
of c.5,400 lots at HY23: c.3,200 on balance
sheet, c.2,200 under contract
➔House sales of c.800 p.a. likely to be the run-rate through FY24;
growth above these levels will only be pursued when market
conditions are supportive
914
651
Funds employed ($m)
Unit Sales
189
199
c.410
HY23Contracted
sales at
end-Jan-23
Sales YTG
(Feb-Jun-23)
FY23F
449
633
c.820
178
290
50
40
(26)
(49)
FY22HY23FY23F
Housing landHousing WIPInd. Dev'tOther
c.800
*Market value of land
2
: c.$980m
*
388
1

FY23 outlook –Group
FY23 EBIT
1
now forecast to be $800m to $855m; underlying performance remains strong, but offset by a very wet Jan /
Feb in NZ; market activity and house sales in the balance of FY23 expected to be the key driver of result
1. Before significant items
Page 21| Fletcher Building Limited Half Year Results Presentation| © February 2023
➔Now forecasting FY23 EBIT
1
of $800m to $855m. While underlying performance remains strong, Jan-Feb trading has been
impacted by adverse weather events in the upper North Island of NZ
➔We continue to target the top end of the FY EBIT range:
➔Materials & distribution: underlying business performance and margins tracking well; targeting c.$700m FY23 EBIT
1
, assumes
volumes in balance of FY23 are broadly in line with 1H23
➔Residential and Development: targeting c.800 unit sales (of which c.390 contracted YTD) and targeting FY23 EBIT
1
c.$185m
➔Construction: earnings impacted by weather related project delays, targeting FY23 EBIT
1
c.$35m
➔Corporate costs c.$70m in FY23F
➔FY23 final outcome is dependent principally on 2H market volumes in materials & distribution and Residential house sales
➔Strong 2H cash flows expected due to timing of earnings and unwind of inventories in Resi& Devt. and materials & distribution

Fletcher Building Limited
Agenda
1. ResultsOverviewRoss Taylor
2.Financial ResultsBevan McKenzie
3.OutlookRoss Taylor

Longer term outlook
Well positioned for softer FY24 and growth beyond that
1. Before significant items
Page 23| Fletcher Building Limited Half Year Results Presentation| © February 2023
➔FY23F EBIT
1
$800m to $855m
➔Positioning cost base and working capital for softer FY24, focused on holding margins close to FY23 current levels
➔Current expectation is for FY24 materials & distribution volumes to be c.10-15% below 1H23
➔Strong control of overhead costs and pricing, will quickly flex variable costs to market activity
➔Active management of Residential and Development working capital, house sales ambition in line with market reality
➔Construction underpinned by solid infrastructure pipeline
➔Growth investments maturing and will remain a key area of focus; c.$25m run-rate EBIT in FY24, profit contribution growing
through FY25-26, full earnings run-rate FY27

Our strategy positions us well to drive shareholder value in the short-and
long-term
Significant
near-term
profit growth
Well-positioned
for a softer
FY24
Strong
enduring
financial
position and
returns
Established
pipeline of
growth
investments –
primarily
organic
Retain benefit
of underlying
margin gains
and drive
further
improvement
01
0302
04
✓
05
FY23 EBIT target
$800m to $855m
Targeting 9-10%
sustainable
through-the-cycle
margins
c.$700m growth
capex over FY23-26
Returns ≥15% ROFE’s
Strong balance sheet
Good cost control
and price recovery
Targeting margins in
softer FY24, close to
FY23 levels
Leverage target
1x-2x range
Flex Resifunds to
market reality
ROFE ≥ 15%
Note: EBIT and margin are before significant items
Page 24| Fletcher Building Limited Half Year Results Presentation| © February 2023

Fletcher Building Limited
Appendix

1. Before significant items
Building Products
HY23 results: delivering on customer needs through customer service & operational excellence
EBIT Margin (%)
1
EBIT ($m)
1
HY23 trading performance
➔Revenue up 9%: uplift across Products and Steel reflecting
continuing high market demand with strong product positioning
and digital customer service enhancement; lower Pipes from
delayed civil projects from wet weather and market destocking
➔EBIT up 23%: sustained buoyant demand in the residential &
commercial sectors benefited finishing trade businesses (most
manufacturing ops close to maximum capacity), but softer civil
and infrastructure sector demand in Pipes & Steel businesses
(increased freight & storage costs, partly offset by improved
product mix & price).
➔EBIT margin 14.1%: higher volumes driving strong operating
leverage; delivering on effective pricing governance & cost
management
➔Strong trading cash flows with stabilised stock levels & solid
debtor collection in Steel
96
118
HY22HY23
12.5%
14.1%
HY22HY23
765
835
HY22HY23
Gross Revenue ($m)
40
78
HY22HY23
Trading cash flow ($m)
Page 26| Fletcher Building Limited Half Year Results Presentation| © February 2023

Distribution
HY23 results: sustained volumes delivered against a backdrop of strong market activity
HY23 trading performance
1. Before significant items
EBIT ($m)
1
54
65
HY22HY23
EBIT Margin (%)
1
6.2%
6.7%
HY22HY23
866
965
HY22HY23
Gross Revenue ($m)
35
98
HY22HY23
Trading cash flow ($m)
➔Revenue up 11%: with 2H22 momentum continuing into 1H23;
supply / demand returning to equilibrium; ongoing PlaceMakers
Auckland, SI & Northland regions growth and Mico growth across
all key product categories in upper NI and lower SI
➔EBIT up 20% at an EBIT margin of 6.7%, delivered through
operating leverage of higher sales over a largely fixed cost base
and ongoing gross margin improvement focus; effective pricing
disciplines offsetting cost inflation
➔Trading cash flow of $98m: solid cash collection with customer
liquidity remaining robust; safety stock inventory lowered as
supply chain disruptions eased
➔TUMU stores & F&T facility included from Sep-22 ($4m EBIT); new
PlaceMakers stores in Dunedin & Winton, new Mico branch in
Mangawhai
Page 27| Fletcher Building Limited Half Year Results Presentation| © February 2023

1. Before significant items
Concrete
HY23 results: margin improvement through innovation & sustainability solutions and cost initiatives
EBIT Margin (%)
1
EBIT ($m)
1
61
74
HY22HY23
14.3%
15.2%
HY22HY23
Gross Revenue ($m)
428
487
HY22HY23
72
57
HY22HY23
Trading cash flow ($m)
➔Revenue up 14%: strong top-line performance across all key
product segments with continued robust market demand and
good pricing disciplines; launch of Golden Bay EcoSure® and Firth
EcoMix®, NZ’s first low-carbon binder and concrete offerings at
scale supporting the division’s decarbonisation commitment
➔EBIT up 21%: continued price and cost discipline in a high
inflationary environment
➔EBIT margin of 15.2%: sustained programme of manufacturing &
supply chain initiatives (egalternative fuels & raw material
capability) delivering continued margin improvement; overheads
well-controlled
➔Trading cash flow lower due to key raw material purchase timing,
inventory rebuild and costs from a quarry exit
HY23 trading performance
Page 28| Fletcher Building Limited Half Year Results Presentation| © February 2023

EBIT Margin (%)
1,2
EBIT ($m)
1,2
Australia
HY23 results: improved pricing disciplines, manufacturing optimisation & product categories
3.5%
5.3%
HY22HY23
Gross Revenue ($m)
1
1,365
1,534
HY22HY23
Trading cash flow ($m)
1
(28)
(40)
HY22HY23
48
82
HY22HY23
➔Revenue up 12% reflecting robust market activity, espin
residential sector; albeit weather events caused demand & supply
disruption
➔EBIT up 71%, continued margin improvement to 5.3%
➔Building Products up 94%: growth in Laminex core & market
leading decorative categories; FI pricing activities, new
products, lower manufacturing & distribution costs; Iplex
leading offer in core markets with increased market activity
➔Solid Distribution: ongoing SME plumber segment growth,
own brand strategy & digital sales; Oliveri share gains
➔Steel up 20%, strong pricing disciplines & share growth in
margin accretive sheds & doors segment but supply remained
constrained
➔Trading cash flows reflected targeted inventory investments in
supply chain constrained environment with continued tight debtor
controls
1. Excluding Rocla in HY22, all commentary excludes Rocla business divested in the prior year
2. Before significant items
HY23 trading performance
Page 29| Fletcher Building Limited Half Year Results Presentation| © February 2023

1. Before significant items
2. HY23 $914m funds balance: $633m housing land (at cost), $290m housing WIP, $40m industrial development land, $(49m) other
Residential and Development
HY23 results: cooling house sales after a strong 2 years of growth; well positioned for softening market
17.4%
HY22HY23
ResiTotal EBIT Margin
65
33
47
16
HY22HY23
ResiInd. Dev't
EBIT Margin (%)
1
EBIT ($m)
1
27.2%
22.4%
Funds employed ($m)
2
651
914
263
FY22Land &
Housing WIP
HY23
318
219
HY22HY23
Gross Revenue ($m)
➔Revenue 31% lower with lower sales and lower Industrial
Development as expected. In Residential: 189 unit sales (vs. 278
in HY22), in slowing housing market from elevated levels; average
unit price returning to pre-COVID historic levels
➔Residential EBIT $33m; includes Vivid Living, Apartments & Clever
Core combined loss of $5m impacting margin as businesses build
product for stronger margin realisation
➔Industrial Development EBIT $16m: ChchWinstone Aggregates
quarry, Napier site & Mackay Rocla sites sold
➔Funds employed increase reflects settlement of $200m land and
planned higher land & housing WIP
➔Land pipeline c.5,400 lots (c.3,200 residential lots & two rural
properties on balance sheet, c.1,700 units under unconditional
contracts & 460 units under conditional contracts)
HY23 trading performance
Page 30| Fletcher Building Limited Half Year Results Presentation| © February 2023
112
49
35.2%

1. Before significant items
2. Before elimination of intra-group margin on the construction of WWB plant at Taurikoof $4m in HY23 and $5m in HY22
Construction
HY23 results: more stable operating conditions
EBIT Margin (%)
1,2
EBIT ($m)
1,2
➔Revenue 10% lower: reduced volume of building works, shifting to
infrastructure services strategy running through as expected
➔EBIT $9m: good progress to more stable operating conditions but
constrained labour market, materials inflation & slippage of client
work programmes; persistent wet weather in winter & spring
seasons
➔Legacy projects:
➔Hamilton City Edge & PekaPekato Ōtakimotorway projects
open to traffic
➔Further $150m cost provision for additional costs on NZICC
➔Trading cash outflow of $32m: impacted by reinstatement work on
the NZICC
➔Balanced future orderbook of lower risk, smaller self-perform
work in Higgins & BPC with roading, water and bus projects
(5)
9
HY22HY23
(0.7)%
1.4%
HY22HY23
Gross Revenue ($m)
720
650
HY22HY23
2
(32)
HY22HY23
Trading cash flow ($m)
HY23 trading performance
Page 31| Fletcher Building Limited Half Year Results Presentation| © February 2023

Divisional revenue exposure and FB revenue by market
Resi, 48%Com, 26%Infra, 26%
Resi, 78%Com, 21%
Resi, 43%Com, 30%Infra, 27%
Resi, 60%Com, 28%
Infra,
12%
33%
18%
17%
20%
9%
3%
NZ
Residential
NZ
Commercial
NZ
Infrastructure
AU
Infrastructure
AU
Commercial
AU
Residential
Total FB Revenue by Market (%)
Divisional Revenue Exposure by Sector
Distribution
Building
Products
Concrete
Australia
Page 32| Fletcher Building Limited Half Year Results Presentation| © February 2023

---

Fletcher Building Limited
2023 Interim Financial Results

Front cover image: Tradelink®’s Jason Richardson at the Morningside
branch in Brisbane inspects stock.
When used in these Interim Financial Results, 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. References
to $ and NZ$ are to New Zealand dollars unless otherwise stated.
Contents
Fletcher Building Limited 2023 Interim Financial Results
2
03 Chair and CEO's Review
05 Group Performance
07 Group Overview
10 Building Products
11 Distribution
12 Concrete
13 Australia
14 Residential and Development
15 Construction
16 Consolidated Financial Statements
21 Notes to the Consolidated Financial Statements
31 Independent Auditor's Review Report

Convention centre construction cost
provision
The NZICC build in central Auckland is making good
progress and is due to open to the public in 2025. While
rebuild efforts are well on track following the significant
fire damage sustained in 2019, it is now expected that
costs are likely to exceed our Contract Works Insurance
policy. In December, we signalled that an additional $150
million of cost provision would be made to address the
reinstatement work required.
As well as provisioning for inflation, the increases
are largely to address the significant complexity of
the remediation including water damage and mould
occurring following the fire.
NZICC is the final remaining vertical project for Fletcher
Construction, in line with the successful rationalisation of
the division’s portfolio towards infrastructure services.
Health and safety
Protect, our multi-year safety programme, continues
to drive improvements over the half year. We recorded
a Total Recordable Injury Frequency Rate (TRIFR) of
3.2 (24% improvement vs HY22), and 94% of our sites
remained injury-free.
Efforts during this time focused on leadership training and
coaching, and as we move into the second half, our focus
continues to be managing critical risks and delivering our
highly engaging frontline safety engagement programme
‘Power Up’ for our site-based staff.
Chair and CEO's Review
We are pleased to report Fletcher Building’s financial results for the six months ended 31 December 2022 (HY23).
Group revenue was solid overall at $4,284 million, up 5% on the first half of FY22. Group Earnings Before Interest and Taxes (EBIT)
before significant items was $360 million, up 8% from $332 million in the prior period. Group EBIT margin, excluding significant
items, improved to 8.4% from 8.2%, and Net Earnings attributable to shareholders was $92 million (including $150 million flagged
construction provisions) compared to $171 million in the prior period. The Board is pleased to approve a fully imputed interim dividend
of 18.0 cents per share.
Cash flows from operating activities for the Group were an outflow of $203 million, compared to an inflow of $157 million in HY22.
This was driven largely by a rebuild of land and housing stock following a significant drawdown in FY21 to FY22. Return on Funds
Employed (ROFE) was 17.8% (compared to 18.7% in HY22), remaining ahead of our 15% target.
HY23 Performance
Performance across our materials and distribution divisions
led the Group’s revenue, EBIT and margin improvements
in HY23. Sales volumes on both sides of the Tasman were,
generally in line with, or slightly below the second half of
FY22, and there was an easing of previous supply chain and
COVID-19 related challenges. Input cost inflation remained
elevated, however strong pricing disciplines led to good
recovery of these cost increases. Combined with efficiency
initiatives and a focus on margin accretive market segments,
this resulted in improved EBIT margins.
The uplift in earnings in our materials and distribution
divisions was partly offset by lower New Zealand housing
sales following two years of strong growth, as well as
Industrial Development earnings returning to the usual run-
rate with $16 million EBIT in HY23 compared to $47 million
EBIT in HY22. The Construction division returned to first
half EBIT profitability, albeit was impacted by an additional
provision on the New Zealand International Convention
Centre and Hobson Street Hotel (NZICC), as outlined below.
Growth investments starting to lift earnings
With a well-capitalised balance sheet, we have good
opportunities that support our circa $700 million growth
investment programme over FY23 to FY26. These projects are
primarily organic and are in logical adjacencies in our New
Zealand businesses, including investments in: wood panels,
structural timber, insulation, steel, frame and truss, and
concrete circular solutions. These strategic investments are
based on mid-cycle activity levels and are targeting ROFE at
or above 15%.
The Tumu® stores and Waipapa timber acquisitions that will
be completed in FY23 will deliver approximately $25 million
run-rate EBIT in FY24, with the organic projects contributing
from FY25 to FY26.
Fletcher Building Limited 2023 Interim Financial Results
3

Chair and CEO's Review (cont.)
A more ambitious sustainability plan
We remain committed to a 30% carbon emissions reduction
by 2030 from the 2018 base year. We have now reduced
those emissions by 10% in absolute terms, and by a higher
amount if we look at carbon per tonne of revenue (carbon
intensity). In our refreshed sustainability strategy, we also
commit to Net Zero emissions by 2050. To achieve this, we
set our sights on further reductions in Scope 1 and Scope 2
emissions (direct and indirect emissions, respectively) and
in working with suppliers to reduce our Scope 3 emissions
(their emissions).
We received an ‘A-’ rating (up from a ‘B’ rating) in our most
recent climate change assessment by the Carbon Disclosure
Project (CDP) and we were again included in the Australian
Dow Jones Sustainability Index. Fletcher Building was also
selected as a member of the 2023 Sustainability Yearbook for
the first time, acknowledging our sustainability performance
in the top 15% of companies world-wide in our industry.
Our broadened sustainability plan includes targets to derive
75% of our product revenue from sustainably certified
products and to divert 70% of our waste from landfill (both
by FY26). We are also aiming to progress in important social
areas such as achieving 30% female representation in
operational roles by 2027. Improvements already made to
inclusion and diversity across the Group during the period
included a market-leading gender-neutral parental leave
policy (offering families more flexibility to choose primary
and secondary carers as families expand), and support for
our people who are ‘Transitioning at Work’.
Market expectations for second half and
beyond
While the underlying performance of the business is strong,
trading in New Zealand in January - February has been
heavily impacted by the adverse weather events slowing
customer work activity and projects in the start of the
second half. As such we are now forecasting FY23 EBIT
before significant items in the range of $800 million to $855
million. The upper end of the range assumes materials and
distribution sales volumes in the balance of FY23 are at
similar levels to the first half, and that we sell approximately
800 houses in our Residential and Development division.
We expect the softening of residential markets to continue
into FY24 in both New Zealand and Australia. This lower
activity is likely to reduce volumes in our materials and
distribution businesses by circa 10% to 15% compared to
what we have seen in the first half of the current year. And it
is likely to mean that house sales in our NZ Residential and
Development division are at similar levels in FY24 to what we
deliver this year. Commercial and infrastructure markets are
expected to be more robust. As we look ahead to FY24, we
are actively managing variable costs, overheads and capital
to ensure we hold margins close to the current FY23 levels
and keep our balance sheet and cash flows healthy.
Dividend
The Board is pleased to approve an Interim Dividend
of 18.0 cents per share for the six months ended
31 December 2022 to be paid on 6 April 2023. This
compares to 18.0 cents per share for the 2022 Interim
Dividend. The 2023 Interim Dividend will be fully imputed
for New Zealand taxation purposes, though will be
unfranked for Australia taxation purposes.
We want to acknowledge the great efforts of all our
Fletcher Building people, and particularly thank those
who sprang to action on our behalf following recent,
significant flood events in the North Island of New
Zealand. Our roading teams quickly mobilised and did
an outstanding job repairing roads and infrastructure,
often in very challenging conditions. Through their
efforts, they have made a difference for our customers,
families and communities who have been impacted by
the flooding.
We are confident that our strategy positions us well to
continue to drive performance and deliver growth into
the future. We look forward to the second half of the year
and to sharing the full year results in August.
Bruce Hassall Ross Taylor
Chair CEO
Fletcher Building Limited 2023 Interim Financial Results
4

Group Performance
NZ$M
Six months ended
31 December 2022
Six months ended
31 December 2021
Revenue4,284 4,064
EBIT before significant items
(1)
360 332
Significant items
(2)
(154)(43)
EBIT
206
289
Lease interest expense(30)(30)
Funding costs(39)(22)
Earnings before tax
137
237
Tax expense(34)(63)
Earnings after tax
103
174
Non-controlling interests(11)(3)
Net earnings
92
171
Net earnings before significant items
203
214
Basic earnings per share (cents) 11.7 21.0
Basic earnings per share before significant items (cents) 25.9 26.3
Dividends declared per share (cents)18.0 18.0
Cash flows from operating activities(203)157
Capital expenditure247 144
Investments66 12
(1) EBIT before significant items is a non-GAAP measure used by management to assess the performance of the business and has been derived from Fletcher Building
Limited’s interim financial statements for the period ended 31 December 2022.
(2) Further details of significant items can be found in note 2.1 of the financial statements.
Revenue (NZ$M)
Six months ended
31 December 2022
Six months ended
31 December 2021
Building Products835765
Distribution965866
Concrete487428
Australia1,5341,388
Residential and Development219318
Construction650720
Other55
Group4,6954,490
Less: intercompany sales (411) (426)
External revenue 4,2844,064
Fletcher Building Limited 2023 Interim Financial Results
5

Group Performance (cont.)
EBITEBIT before significant items
(1)
NZ$M
Six months ended
31 December 2022
Six months ended
31 December 2021
Six months ended
31 December 2022
Six months ended
31 December 2021
Building Products 113 96 118 96
Distribution 65 54 65 54
Concrete 75 61 74 61
Australia 82 (2) 82 45
Residential and Development 49 112 49 112
Construction (145) (10) 5 (10)
Corporate and Other (33) (22) (33) (26)
Total 206 289 360 332
Lease interest expense (30) (30) (30) (30)
Funding costs (39) (22) (39) (22)
Earnings before tax 137 237 291 280
Tax expense (34) (63) (77) (63)
Earnings after tax 103 174 214 217
Non-controlling interests (11) (3) (11) (3)
Net earnings
92
171
203
214
(1) Measures before significant items are a non-GAAP measure used by management to assess the performance of the business and has been derived from Fletcher Building
Limited’s interim financial statements for the period ended 31 December 2022. Further details of significant items can be found in note 2.1 of the financial statements.
Fletcher Building Limited 2023 Interim Financial Results
6

Group Overview
Trading conditions in HY23 were robust across most sectors
in New Zealand and Australia, with sales volumes generally in
line with or slightly below the second half of FY22. There was
also an easing of supply chain and COVID-19 challenges that
had characterised prior periods. House sales in the Residential
and Development division were slower than prior periods as
the New Zealand housing market cooled after two years of
strong growth. Across the Group, input cost inflation remained
elevated – averaging around 10% per annum compared to
HY22, with higher levels of inflation being observed in certain
areas such as freight, diesel, coal, and gypsum. Pleasingly,
strong pricing disciplines led to good recovery of these
cost increases across the Group. Combined with efficiency
initiatives and a focus on margin accretive market segments,
this resulted in improved gross margins in most divisions.
In this trading environment, all of the Group’s divisions except
Residential and Development materially improved both EBIT
before significant items and EBIT margins compared to the
prior period.
The New Zealand materials and distribution divisions (Building
Products, Concrete, Distribution) performed well in HY23.
EBIT before significant items for these divisions increased
to $257 million, compared to $211 million in the COVID-19
impacted HY22, and EBIT margins improved to 11.2%. Sales
volumes for the residential finishing trades and commercial
sector were broadly in line with the second half of FY22,
while in the residential civil sector volumes softened by
approximately 10% to 15%. Infrastructure markets were solid,
though aggregates supply into roading was impacted by wet
weather. A focus on customer service and solutions, and
pricing to offset inflation, resulted in gross margins expanding
by 100 basis points compared to the prior period. Significant
progress was also made in HY23 on the growth investment
programme planned for these divisions across FY23 to FY26.
In HY23, this included: completion of the Tumu® stores
acquisition; signing of an agreement to purchase the Waipapa
structural timber business (completion expected in 4Q23);
and progress on organic growth investments in wood panels,
insulation, frame and truss, steel distribution, aggregates
resource, and lower-carbon cement binders.
In Australia, market activity levels were generally robust,
notwithstanding some disruption from ongoing weather and
transport challenges. Revenues were 11% higher than the prior
period. Significant input cost inflation also remained a feature
of the HY23 trading environment, with the division’s improved
pricing disciplines and governance ensuring higher input
costs were successfully recovered – lifting gross margins by
300 basis points. Overall, HY23 EBIT before significant items
for the division increased to $82 million compared to $45
million in HY22, resulting in EBIT margins of 5.3%. The division
is well-positioned to deliver its FY23 target earnings margin
of greater than 5% and remains focused on driving to margins
of greater than 7% over the medium-term. The increased
profitability reflects the division’s work over several years to
improve its cost base and operating efficiency while pushing
into margin accretive categories.
In the Residential and Development division, EBIT was
$49 million compared to $112 million in the prior period.
Residential delivered EBIT of $33 million, down from $65
million in the prior period, with 189 units taken to profit
compared to 278 in HY22. Average house sales prices were
around 10% below the market peak observed in late 2021,
though still resulted in solid Residential EBIT margins of
17.4% in HY23. Residential land and housing inventories
were rebuilt during the period as expected, following a
material draw-down of these stocks in FY21 and FY22. In
a softer New Zealand housing market, which is expected
to continue in 2023, the Residential and Apartments
businesses also moved to pause work on certain
developments to ensure effective management of funds
employed. In Industrial Development, HY23 EBIT was $16
million. This compares to $47 million in the prior period,
which included sale of a large site from the now-divested
Rocla® business.
The Construction division reported EBIT before significant
items (and prior to elimination of the intra-Group margin
on the new Winstone Wallboards® plant) of $9 million. This
compares to an EBIT loss in HY22 of $5 million. The HY23
result was achieved despite some project delays and wet
weather, which led to a late start to the road sealing season.
In line with prior years, Construction’s FY23 EBIT before
significant items is expected to be weighted to the second
half. Pleasingly, the quality of Construction’s forward
order book continues to improve, and at 31 December
2022 work in hand (excluding legacy projects) was $2.4
billion. The division continues to make good progress
on the completion of historical legacy projects, with two
major roading projects opened in HY23 and the Pūhoi to
Warkworth motorway on track to open in the second half
of the year. Despite good progress on the New Zealand
International Convention Centre and Hobson Street Hotel
(NZICC), the complexity of the rebuild meant costs are
now expected to exceed Contract Works Insurance policy
limits. This resulted in an additional $150 million provision
for costs, classified as a significant item, as NZICC is the
division’s last project as it winds down its operations in the
vertical building sector.
Significant items in HY23 were $154 million, related almost
entirely to the additional provisioning on the NZICC project.
Net interest expense for the Group was $69 million in the
period, of which $30 million was related to lease interest
expense and $39 million to funding costs. Tax expense
was $34 million in the period compared to $63 million in
the prior period. The effective tax rate in HY23 (excluding
significant items) was 26.5%.
Basic earnings per share were 11.7 cents for the period,
compared to 21.0 cents in the prior period. Excluding the
impact of significant items, earnings per share were 25.9
cents, compared with 26.3 cents in the prior period.
External revenue of $4,284 million was 5% higher than the prior period’s $4,064 million. EBIT before
significant items was $360 million, compared to $332 million in the prior period. Group net earnings were
$92 million, compared to $171 million reported in the prior period. Cash flows from operating activities
were an outflow of $203 million, compared to an inflow of $157 million in the prior period. Return on
Funds Employed (ROFE) before significant items was 17.8%, compared to 18.7% in the prior period.
Fletcher Building Limited 2023 Interim Financial Results
7

Group cash flows
Cash flows from operating activities for the Group were
an outflow of $203 million, compared to an inflow of $157
million in the prior period.
In the materials and distribution divisions, trading cash
flows (before significant items) were a healthy $206 million,
compared to $133 million in the prior period. Investment
in inventories – which is included in the trading cash flow
result – resulted in a $58 million outflow in HY23, driven
principally by the Building Products and Australia divisions.
This inventory build is seasonally driven and is expected to
unwind in the second half of the year, consistent with the
Group’s prior guidance for inventory levels to hold broadly
flat through FY23. Debtor collections remained solid in these
divisions, with debtor days increasing slightly to 40.7 days
at 31 December 2022 compared to 39.0 days in the prior
period, and with bad debt levels remaining low.
In Residential and Development, investment in land and
housing inventories resulted in a working capital outflow of
$270 million in HY23. This included the settlement of around
$200 million of land purchases contracted in prior periods,
plus a seasonal uplift in work-in-progress as house sales are
typically weighted to the second half. In light of the slowing
New Zealand housing market, the division has paused or
slowed work on certain housing developments and has
entered into limited new agreements for land purchases. The
division is targeting a material cash inflow in the second half
of FY23 and a year-end funds balance of approximately $850
million (compared to $914 million at 31 December 2022).
Construction recorded a trading cash outflow of $32 million.
This was due mainly to a $28 million cash outflow on legacy
projects, and a $4 million impact from significant items.
Overall, Group trading cash flows are expected to be
weighted to the second half of FY23, driven by the higher
expected earnings in that period, and a reduction of
inventories in the materials, distribution, and Residential
and Development divisions.
Net capital expenditure for the Group was $244 million in HY23.
This included: $57 million for the new Winstone Wallboards®
plant, which will be fully commissioned in the second half
of FY23; $37 million for a site for a new PlaceMakers® frame
and truss plant; $23 million for commencement works for
the new Laminex® Taupo wood panels plant; $30 million for
land purchases enabling consolidation of Steel’s Auckland
operations; and $21 million towards the Group’s project to
improve the Group's ERP system environment.
In addition, the Group completed two acquisitions, namely
the purchase of six Tumu® ITM building supply centres and a
frame and truss operation expanding the PlaceMakers® offering
servicing the East Coast of the North Island ($50 million with
an additional $10 million working capital adjustment settled
in January 2023), and a smaller Water Filters operation for the
Oliveri® business in Australia ($6 million).
Group cash flows in HY23 are also inclusive of a $154 million
of income tax payments in New Zealand and a $172 million
payment for the FY22 final dividend.
Group Overview (cont.)
Cash flow (NZ$M)
Six months ended
31 December 2022
Six months ended
31 December 2021
EBIT before significant items
(1)
360
332
Depreciation and amortisation180172
Lease principal payments and lease interest paid(127)(119)
Provisions and other(19)(12)
Trading cash flow before working capital movements394373
Working capital movements(457)(296)
Trading cash flow excluding significant items and legacy projects(63)77
Legacy projects cash flow(28)35
Significant items cash flow(16)(25)
Trading cash flow(107)87
Add: lease principal repayments 9789
Less: cash tax paid(154)-
Less: funding costs paid(39)(19)
Cash flows from operating activities(203)157
Free cash flow
(2)
excluding legacy projects(477)(51)
(1) 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 interim financial statements for the period ended 31 December 2022. Further details of significant items can be found in note 2.1 of the financial statements.
(2) Free cash flow is defined as trading cash flow less capital expenditure and cash tax but excluding any merger and acquisition activities.
Fletcher Building Limited 2023 Interim Financial Results
8

Balance Sheet, Returns and Funding
The Group’s balance sheet, returns and funding profile
remain strong.
Return on funds employed (ROFE) before significant items
for the year to 31 December 2022 was 17.8%, well ahead
of the Group’s target of at least 15.0%. Funds employed
increased to $4.8 billion compared to $4.2 billion at 30
June 2022, reflecting the Group’s growth investments
and the rebuild of Residential land and housing stocks.
Notwithstanding these investments, ROFE in the materials
and distribution divisions (18.8%) and the Residential and
Development division (17.0%) remained strong.
In HY23, as part of its syndicated revolving credit facility,
the Group negotiated an additional Australian dollar
denominated tranche of A$674.5 million. Total funding
available to the Group as at 31 December 2022 was $2,488
million of which $785 million was undrawn and there was
an additional $272 million of cash on hand. This provided
liquidity to the Group of $1.1 billion.
The Group’s leverage ratio (net debt / EBITDA) at 31
December 2022 was 1.25 times, higher than the 0.61
times at 30 June 2022, but remaining at the lower end of
the Group’s target range of 1.0 – 2.0 times. The Group’s
gearing at 31 December 2022 was 28.3% compared with
15.1% at 30 June 2022.
The average maturity of the Group’s debt at 31 December
2022 was 3.4 years and the hedged currency split was 21%
Australian dollar; 78% New Zealand dollar; and 1% spread
over various other currencies.
The Group currently has 53% of all borrowings with
fixed interest rates with an average duration of 2.8 years.
Inclusive of floating rate borrowings, the average interest
rate on the debt (based on period-end borrowings) is 5.2%.
Dividend
The 2023 interim dividend is 18.0 cents per share and will
be fully imputed for New Zealand taxation purposes, though
will be unfranked for Australian taxation purposes.
The interim dividend will be paid on 6 April 2023 to holders
registered as at 5:00 pm (NZ time) on 17 March 2023. The
shares will be quoted on an ex-dividend basis from 16 March
2023 on the NZX and ASX. The Dividend Reinvestment Plan
will not be operative for this dividend payment.
Group Overview (cont.)
Fletcher Building Limited 2023 Interim Financial Results
9

›Winstone Wallboards®
›Laminex® New Zealand
›Comfortech®
› Iplex® New Zealand
›Humes®
›Fletcher Steel®
›Altus® JV
Divisional Review
EBIT for six months
ended 31 December
NZ$M20222021
Building Products9366
Steel2530
Total11896
(1) EBIT before significant items is a non-GAAP measure used by management to
assess the performance of the business and has been derived from Fletcher
Building Limited's financial statements for the period ended 31 December 2022.
(2) Details of significant items can be found in note 2.1 of the financial statements.
Financial Summary
NZ$M
Six months ended
31 December
20222021
Gross revenue835765
External revenue684613
Gross margin34%33%
EBIT before significant items
(1)
11896
EBIT margin before significant items
(1)
14.1%12.5%
Significant items
(2)
(5)-
Funds1,180870
Trading cash flow7840
Capital expenditure12679
Building products
The Building Products division reported gross revenue of $835 million, 9% higher than the prior
period. EBIT before significant items was $118 million and EBIT margin was 14.1%, materially higher
than the $96 million and 12.5% reported in the prior period.
The division’s finishing trade businesses (Winstone
Wallboards®, Comfortech®, Laminex®) reported gross
revenue 17% higher than the prior period. These businesses
benefited from ongoing elevated demand in the residential
and commercial sectors, as well as market share gains,
strong product positioning and sustained digital customer
service enhancements. In Steel, gross revenue increased
by 10% from higher steel prices, supported by solid trading
activity in the commercial segment and share gains in
the roofing segment. In the Pipes businesses (Iplex®
and Humes®), gross revenue was 10% lower than the
prior period, impacted by wet spring weather conditions
and customers winding down their high post COVID-19
inventory holdings.
EBIT before significant items for the division of $118 million
was 23% higher than the prior period and well ahead of
revenue growth. Effective pricing governance, including a
narrowing of the time lag in implementing price increases,
plus the strengthening of the businesses’ customer
offerings, resulted in 120 basis points improvement in gross
margins. The finishing trade businesses increased EBIT
before significant items by $21 million or 38% compared to
the prior period, while in the Steel and Pipes businesses EBIT
before significant items reduced by $3 million due to higher
freight and storage costs, and the softer civil market.
Significant item charges in the division of $5 million
largely related to Winstone Wallboards®' transition to the
new Tauriko plant.
Trading cash flow in HY23 was $78 million, compared to
$40 million in the prior period. Investments in inventories
were materially lower than the prior period, while debtor
collections remained robust across the division. In the
second half of FY23, a degree of inventory unwind is
expected to further support trading cash flows.
Capital expenditure in the period was $126 million, of which
$57 million was for the ongoing build of the new Winstone
Wallboards® plant in Tauriko, scheduled for May 2023
project commissioning. Additionally, the division incurred
$23 million of initial capital expenditure for the upgrade
of the Laminex® Taupo wood panels plant with expected
completion in 2027, and $30 million for a land purchase as it
prepares to consolidate some of the Steel Auckland sites.
The division’s strategic focus is on:
• Maintaining margins close to present levels as we
navigate a softening market in FY24 through: operational
efficiency from recent investments in modern, automated
manufacturing; ongoing tight cost control; procurement
benefits; and ongoing effective pricing disciplines.
• Driving additional earnings growth and margin
improvements in the medium term from: new product
development; new digital solutions to customers;
and maturing growth investments in insulation, steel
distribution, wood panels, and the broader wood sector.

Fletcher Building Limited 2023 Interim Financial Results
10

Distribution
The Distribution division reported gross revenue of $965 million, which was 11% higher than the prior
period. EBIT was $65 million compared to $54 million in the prior period. EBIT margin improved to 6.7%
from 6.2% in the prior period.
Following the FY22 year in which demand outstripped supply
in many areas, HY23 saw a return to more normal trading
conditions for the Distribution businesses. Regionally,
market activity was most robust in Auckland and the lower
South Island, with demand strongest in the frame and
truss, plasterboard, and insulation categories. Overall sales
volumes for the division in HY23 tracked slightly below the
second half of FY22.
In September, the division successfully completed its
acquisition of the Tumu® business, comprising six stores and
a frame and truss manufacturing plant. The division’s focus
continues to be on a successful integration of the business,
centred around its people and customers. Tumu® contributed
EBIT of $4 million in the four months to 31 December 2022,
in line with expectations. During the half year, PlaceMakers®
opened new branches in Dunedin and Winton, and Mico®
opened its new Mangawhai branch. The division also secured
the site for its new frame and truss plant, and continued to
mature its digital programme, including the launch of Mico®’s
new Trade Portal and Customer App.
The division lifted EBIT margin by 50 basis points to 6.7%
in HY23, primarily from ongoing margin improvement in
PlaceMakers®. Supplier cost increases remained a feature
in the period. The division’s improved pricing disciplines
ensured higher input costs were recovered in most areas,
with gross margins improving 80 basis points compared
to the prior period. Labour constraints in the New Zealand
market continued to place upward pressure on overhead
labour costs, increasing the importance of the division’s
digital and efficiency programmes.
Trading cash flow for the division was $98 million, a
significant improvement on $35 million of trading cash flow
in the prior period. Inventory levels reduced as the supply
chain came into equilibrium, enabling an unwind of the
safety stock build up during FY22. Cash collections remained
robust, though debtor days increased to 39.0 at 31 December
2022 from 36.3 at December 2021, and customer liquidity
remains an area of focus heading into 2023.
Capital expenditure for the period was $43 million, primarily
comprising a property acquisition to locate the division’s new
frame and truss operation.
The division’s strategic focus is on:
• Maintaining margins close to present levels as we navigate
a softening market in FY24 through: ongoing tight cost
control and price discipline; supply chain optimisation;
and leveraging the division’s maturing digital programme.
• Driving additional earnings growth and margin
improvements in the medium term from: network
expansion; growing share in key categories; innovation
in customer solutions, both digitally and in-store; and the
investment in frame and truss.
Financial Summary
NZ$M
Six months ended
31 December
20222021
Gross revenue965866
External revenue948854
Gross margin28%27%
EBIT6554
EBIT margin6.7%6.2%
Funds299195
Trading cash flow9835
Capital expenditure433
Investments60-
› PlaceMakers®
› Tumu®
› Mico®
Divisional Review
Fletcher Building Limited 2023 Interim Financial Results
11

Concrete
› Firth® Industries
› Golden Bay®
› Winstone Aggregates®
Divisional Review
Financial Summary
NZ$M
Six months ended
31 December
20222021
Gross revenue487428
External revenue344301
Gross margin29%28%
EBIT before significant items
(1)
7461
EBIT margin before significant items
(1)
15.2%14.3%
Significant items
(2)
1-
Funds631586
Trading cash flow5772
Capital expenditure2135
(1) 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 31 December 2022.
(2) Details of significant items can be found in note 2.1 of the financial statements.
The Concrete division reported gross revenue of $487 million, which was $59 million or 14% higher
than the prior period. EBIT before significant items was $74 million compared to $61 million in the prior
period. EBIT margins expanded to 15.2%.
The division delivered good top-line performance across all
product segments, underpinned by robust market demand,
pricing discipline, and improved market positioning.
Golden Bay® and Firth® increased revenues by 14% and
16% respectively compared to HY22, with both businesses
growing on the back of market-leading customer offers
and debottlenecking of operations. In the period, Firth®
continued to advance its innovative solutions and smart
design with further development of systems such as
the RibRaft® HotEdge® range. Winstone Aggregates®’
revenue growth in the period was 9% albeit impacted by
weather on the roading sector.
The division’s gross margin and EBIT margin improved over
the prior period by 120 basis points and 90 basis points
respectively. This reflects continued price and cost discipline
in a high inflationary environment as well as a sustained
programme of manufacturing, supply chain and network
optimisation initiatives over the past four years. An example
of these types of programmes is Golden Bay® continuing to
fast scale its alternative fuels and raw materials capability,
allowing for significant substitution of coal with waste wood
and tyres, delivering sustainability benefits for New Zealand
and helping to offset elevated energy costs. The benefits
of these programmes of initiatives have seen the division
increase its EBIT margin by approximately 400 basis points
since FY19 to 15.2%.
Trading cash flow for the division was $57 million, 21% lower
than the prior period. Trading cash flow was impacted by
the phasing of key raw material purchases and one-off costs
relating to the exit of a quarry position.
Capital expenditure in the period of $21 million was focused
on asset renewal and capacity expansion in key operations,
with expenditure in the prior period higher due to the
acquisition of land to support footprint expansion in Firth®
and Winstone Aggregates®.
The division’s strategic focus is on:
• Strengthening its position as New Zealand’s leader in
sustainable binders and concrete, through investment in:
alternative fuels and raw materials; waste management;
and recycling and reuse. A highlight of the period was the
launch of Golden Bay® EcoSure® and Firth® EcoMix®, New
Zealand’s first low-carbon binder and concrete offerings
at scale supporting the division’s decarbonisation
commitment. Winstone Aggregates® also strengthened
its circular materials offering and the use of recycled
concrete.
• Sustaining margins through continuous performance
improvement as we navigate a softening market in FY24
through: tight overhead cost control and procurement
benefits; energy cost optimisation; pricing discipline;
and improvements in operational efficiency enabled by
debottlenecking, manufacturing, and new digital tools.
• Driving additional earnings growth and margin
improvements in the medium term from: expansion of
aggregates resource and the ready-mix network; and
enhanced product and service offerings, especially from
lower carbon and circular offerings.
Fletcher Building Limited 2023 Interim Financial Results
12

Australia
The Australia division reported gross revenue of $1,534 million, up 11% on the prior period.
EBIT before significant items was $82 million, compared with $45 million in the prior period.
EBIT margins increased to 5.3% compared to 3.2% in the prior period.
During HY23, market activity in Australia remained broadly
supportive, particularly in the residential segment, however
weather events and supply chain challenges (especially
in rail links) did cause some market and operational
disruption. Significant input cost inflation was again a
feature of the HY23 trading environment. The division’s
strong pricing disciplines and governance ensured higher
input costs were successfully recovered, with gross
margins increasing 300 basis points on HY22.
The Australian Building Products businesses (excluding Rocla®)
delivered revenue growth of 21% (16% in local currency) and
EBIT before significant items of $64 million, compared to $33
million in the prior period. Laminex® revenue increased by 24%,
with benefits of growth in both its core ranges and a market
leading decorative category offer. Fletcher Insulation® grew
revenues by 10%, driven by pricing activities and prioritisation
of value over volume in key channels, with earnings also
benefiting from a consolidation of manufacturing and lower
distribution costs. In Iplex®, revenue increased by 22% through
a leading offer in core categories and an improvement
in civil market activity, while earnings benefited from the
simplification of its business model and manufacturing base
over the past three years.
The Tradelink® and Oliveri® distribution businesses reported
revenues in line with HY22, with EBIT before significant items
of $10 million also steady on the prior period. Retail activity
was noticeably lower than in HY22 and softened the top-line
performance. Gross margins improved through a focus on price
and from growth in own brand and digital sales. Tradelink®’s
launch of a transactional business-to-business digital platform
in the second half of FY22 now complements the existing
consumer transactional website and is providing a new revenue
stream and higher margins. The Oliveri® business continues to
gain share, both in its traditional kitchen sink and tap market
and through its push into the bathroom category.
The Stramit® steel business grew revenue by 2%, while EBIT
before significant items of $12 million was slightly ahead of the
prior period. Domestic and international steel supply remained
constrained in HY23. Pricing increases resulted in improved
performance with EBIT margins improving on the prior period.
Share growth continued throughout the year in the higher-
margin sheds and doors segments.
For the division overall, the targeted margin uplift on the prior
periods was realised, with a pleasing first half EBIT margin of
5.3%. The division is well-positioned to deliver its FY23 target
margin of greater than 5% and remains focused on driving to
margins of greater than 7% over the medium-term.
Trading cash outflows were $40 million compared with
a $30 million outflow in the prior corresponding period.
The cash flow result reflected continued tight debtor controls
offset by seasonal investments in inventories. As in prior years,
the division expects a strong second half trading cash flow.
Capital expenditure in the period was $16 million, with
key investments continuing in the areas of new product
development, automation in the manufacturing businesses
and digital programmes.
The division’s strategic focus is on:
• Maintaining margins close to present levels as we navigate
a softening market in FY24 from: ongoing tight cost control;
procurement benefits; manufacturing automation; and
ongoing price discipline.
• Driving additional earnings growth and margin improvements
in the medium term from: digital innovation; targeted
share gains in margin accretive categories; innovative new
business models, such as the Haven Kitchens by Formica®
offer in Laminex®; and new product development, including
innovative new materials with the potential to improve both
product performance and sustainability.
› Laminex® Australia
› Iplex® Australia
› Fletcher Insulation®
Building Products
Australia:
› Tradelink®
› Oliveri® Solutions
Distribution Australia:
› Stramit®
Steel Australia
EBIT for six months
ended 31 December
NZ$M20222021
Laminex® AU, Iplex® AU & Fletcher
Insulation®
(3)
6433
Tradelink® & Oliveri®109
Stramit®1210
Divisional costs(4)(4)
Total
(3)
8248
Financial Summary
NZ$M
Six months ended
31 December
20222021
Gross revenue1,5341,388
External revenue1,5001,354
Gross margin32%29%
EBIT before significant items
(1)
8245
EBIT margin before significant items
(1)
5.3%3.2%
Significant items
(2)
-(47)
Funds1,4481,320
Trading cash flow(40)(30)
Capital expenditure1611
Investments6-
(1) 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 31 December 2022.
(2) Details of significant items can be found in note 2.1 of the financial statements.
(3) Excludes the impact of Rocla® in 2021.
Fletcher Building Limited 2023 Interim Financial Results
13

Residential and
Development
› Fletcher Living®
› Vivid Living®
› Fletcher Apartments
› Industrial Development
› Clever Core®
Divisional Review
The Residential and Development division reported gross revenue of $219 million, a 31%
decrease on the prior period. EBIT for the division was $49 million compared to $112 million
reported in the prior period.
In Residential, 189 units were taken to profit compared to 278
in the prior period, with sales volumes impacted by the slowing
housing market in Auckland and Canterbury as interest rates
rose. The average price of units sold was around 10% below
the peak in late 2021, and gross margins were also impacted by
rising materials costs. Nonetheless, Residential still delivered
healthy EBIT margins of 17.4%, at the top-end of its long-term
target range of 15 to 20%.
In Fletcher Living®, EBIT of $38 million in HY23 was down from
$68 million in the prior period. Both Apartments and Vivid
Living® recorded a small EBIT loss during the period, with their
respective sales volumes of circa 100 units and circa 25 units
targeted for the second half of FY23. Clever Core® delivered
59 units in HY23, with a total of around 150 units targeted for
the full year.
In Industrial Development, EBIT of $16 million compared to
$47 million in HY22. The prior period results included the
sale of a large site from the now-divested Rocla® business.
In FY23 there is one additional site targeted for disposal,
which is expected to contribute EBIT in the second half of
approximately $10 million.
At 31 December 2022, the division had circa 5,400 lots under
control, comprising circa 3,200 residential lots and two rural
properties held on balance sheet; circa 1,700 units of both
zoned and future zoned land under unconditional contracts;
and a further 460 units under conditional contracts.
Divisional funds employed at 31 December 2022 was $914
million compared to $651 million at 30 June 2022. This
increase was due to a rebuild of land and housing inventories
as previously flagged, following a material draw-down of
these stocks in FY21 and FY22. On land, the division settled
circa $200 million of prior land agreements in HY23, at prices
which are expected to continue to support the business’s
margin targets. The market value of the overall land portfolio
has been independently assessed at circa $350 million higher
than book value at December 2022, providing a degree of
resilience for this future performance. On housing inventories,
the value of work-in-progress lifted by circa $100 million in
HY23, as productivity reverted to more normal levels following
an FY22 year in which build rates were adversely impacted
by COVID-19. This work-in-progress is expected to reduce
with the division targeting a FY23 year-end funds balance of
approximately $850 million.
Looking ahead, the focus for the division is on:
• Continuing to optimise its housing offer to target the
deepest segments of customer demand.
• Balancing its build rate – and hence its overall funds
employed – with the market environment. In the context of
a softening housing market, work on some Residential and
Apartments developments has been slowed or paused, and
the division has entered into limited new agreements for
land purchases in 2023.
For the FY23 year, the division is targeting a total of
approximately 800 unit sales. At 31 December 2022, it had
a total of circa 300 sales agreements in place: 189 already
taken to profit in HY23, and circa 100 due for completion in the
second half.
EBIT for six months
ended 31 December
NZ$M20222021
Fletcher Living®
(1)
3868
Vivid Living®(1)-
Fletcher Apartments(1)(1)
Clever Core®(3)(2)
Industrial Development1647
Total49112
Financial Summary
NZ$M
Six months ended
31 December
20222021
Gross revenue219318
External revenue214312
EBIT 49112
EBIT margin22.4%35.2%
Funds914649
Trading cash flow(229)(1)
Capital expenditure93
(1) The EBIT result in both periods includes a revaluation gain of $9 million from the transfer of land from Fletcher Living® to Vivid Living®.
Fletcher Building Limited 2023 Interim Financial Results
14

Construction
Financial Summary
NZ$M
Six months ended
31 December
20222021
Gross revenue650720
External revenue594630
EBIT before significant items
(1)(3)
9(5)
EBIT margin before significant items
(1)(3)
1.4%(0.7%)
Significant items
(2)
(150)-
Funds164210
Trading cash flow(32)2
Capital expenditure99
› Major Projects
› Brian Perry Civil®
› Higgins®
› Buildings
› South Pacific
Divisional Review
The Construction division reported gross revenue of $650 million, which was $70 million or 10% lower than
the prior period. Prior to elimination of intra-Group margin on the new Winstone Wallboards® plant, EBIT
before significant items was a profit of $9 million. On a reported basis, EBIT before significant items was a
profit of $5 million, compared to a loss of $10 million in the prior period.
The division continues to make good progress as a focused
infrastructure services business. The division’s orderbook at
31 December 2022 (excluding legacy work) was $2.4 billion,
broadly in line with the prior period. It continues to constitute
lower risk, smaller self-perform work in Higgins® and Brian Perry
Civil®; national and local road maintenance contracts and multi-
year framework agreements with water authorities including
Watercare and Wellington Water. The Eastern Busway project, a
$0.6 billion alliance with Auckland Transport has been added in
the period. This orderbook is expected to support strong work
volumes over the next 24 months.
In HY23, the division also made good progress towards more
stable operating performance following the material impact of
COVID-19 through FY21 and FY22. The tail-end of the pandemic
is still being felt however, with a constrained labour market,
materials cost inflation, and some slippage of client work
programmes into the second half of FY23 and into FY24. Gross
margin in HY23 was also adversely affected by persistent wet
weather over the New Zealand winter and spring seasons.
Positively, the division’s streamlined management structures
and operating efficiencies ensured overheads remained below
8% of revenue.
The division continues to make progress in completion of
major legacy projects. The Hamilton City Edge and Peka Peka
to Ōtaki motorway projects opened to traffic in the period, and
the Pūhoi to Warkworth motorway is scheduled to open in the
second half of FY23. The division continues to seek recovery
of costs due to COVID-19 related events on the Pūhoi to
Warkworth project, with this significant project claim expected
to progress through to FY24 before resolution. On New Zealand
International Convention Centre and Hobson Street Hotel
(NZICC), a further provision of $150 million was taken for costs
of reinstatement work post the October 2019 fire, with these
costs now expected to exceed the Contract Works Insurance
policy limits. These costs are classified as a significant item in
the Group’s HY23 financial statements. NZICC is the division’s
final project in the vertical building sector.
Trading cash flow for the division in HY23 was an outflow of $32
million. Legacy projects resulted in a $28 million cash outflow,
and there was a $4 million impact from significant items.
Trading cash flows across Higgins®, Brian Perry Civil® and Major
Projects (excluding legacy) were an inflow of $9 million.
Capital expenditure in the period of $9 million included cyclical
replacement of bitumen sprayers, pavers and safety barriers
in Higgins®, ERP implementation costs plus additional mobile
cranes in Brian Perry Civil®.
The division’s future focus is on completing the remaining
two legacy projects within provisions and delivering a stable
3 to 5% margin business focused on lower-risk work in the
infrastructure services market. As the final legacy projects are
completed, the division’s annual revenues are expected to
stabilise at around $1.0 to $1.2 billion.
(1) 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 31 December 2022.
(2) Details of significant items can be found in note 2.1 of the financial statements.
(3) Prior to elimination of intra-Group profit in relation to Winstone Wallboards®
Tauriko plant.
Fletcher Building Limited 2023 Interim Financial Results
15

Consolidated income statement (unaudited)
For the six months ended 31 December 2022
Note
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Revenue
4,284
4,064 8,498
Cost of goods sold
(2,975)
(2,886)(5,989)
Gross margin
1,309
1,178 2,509
Selling, general and administration expenses
(975)
(865)(1,786)
Share of profits of associates and joint ventures
16
10 24
Revaluation gain on investment property
10
9 9
Significant items2.1
(154)
(43)(54)
Earnings before interest and taxation (EBIT)
206
289 702
Lease interest expense
(30)
(30)(58)
Funding costs
(39)
(22)(46)
Earnings before taxation
137
237 598
Taxation expense4
(34)
(63)(159)
Earnings after taxation
103
174 439
Earnings attributable to non-controlling interests
(11)
(3)(7)
Net earnings attributable to the shareholders92 171 432
Net earnings per share (cents)
Basic
11.7
21.0 53.5
Diluted
11.3
20.5 50.3
Weighted average number of shares outstanding (millions of shares)
Basic
783
814 807
Diluted
861
864 880
Dividends declared per share (cents)
18.0
18.0 40.0
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
On behalf of the Board, 15 February 2023
Bruce Hassall Robert McDonald
Chair Director
Fletcher Building Limited 2023 Interim Financial Results
16

Consolidated statement of comprehensive income
(unaudited)
For the six months ended 31 December 2022
Notes
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Net earnings attributable to shareholders
92
171 432
Net earnings attributable to non-controlling interests
11
3 7
Net earnings
103
174 439
Other comprehensive income
Items that do not subsequently get reclassified to profit or loss:
Movement in pension reserve18 17
18 17
Items that may be reclassified subsequently to profit or loss in the future:
Movement in cash flow hedge reserve
(4)
11 27
Movement in currency translation reserve
(53)
26 49
Reclassification of foreign currency reserve to consolidated
income statement
42
(57)
37 118
Total comprehensive income for the period46
229 574
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2023 Interim Financial Results
17

Consolidated statement of movements in equity
(unaudited)
For the six months ended 31 December 2022
NZ$MShare capitalRetained earningsShare-based payments reserveCash flow hedge reserveCurrency translation reservePension reserveTotalNon-controlling interestsTotal equity
Total equity at 30 June 2021 3,248 598 28 (19) (146) 46 3,755 16 3,7 71
Change in accounting policies
(1)
(36) (36)(36)
Restated equity at 30 June 2021 3,248 562 28 (19) (146) 46 3,719 16 3,735
Total comprehensive income for the period 171 11 26 18 226 3 229
Movement in non-controlling interests (6)(6)
Dividends paid to shareholders of the parent(148)(148)(148)
Movement in share-based payment reserve3 3 (7)(1)(1)
Repurchase of shares(83)(83)(83)
Equity at 31 December 20213,168 588 21 (8)(120)64 3,713 13 3,726
Restated Equity at 30 June 2021 3,248 562 28 (19) (146) 46 3,719 16 3,735
Total comprehensive income for the period 432 27 91 17 567 7 574
Movement in non-controlling interests (8)(8)
Dividends paid to shareholders of the parent (292) (292)(292)
Movement in share-based payment reserve5 3 (2) 6 6
Repurchase of shares(250) (250)(250)
Equity at 30 June 20223,003 705 26 8 (55)63 3,750 15 3,765
Total comprehensive income for the period 92 (4)(53)35 11 46
Movement in non-controlling interests (8)(8)
Dividends paid to shareholders of the parent (172)(172)(172)
Movement in share-based payment reserve1 5 6 6
Movement in treasury stock(13)(13)(13)
Equity at 31 December 20222,991 630 26 4 (108)63 3,606 18 3,624
(1) The Group adopted the International Financial Reporting Standards Interpretations Committee (IFRIC) agenda decision clarifying its interpretation of NZ IAS 38 Intangible Assets
and treatment of configuration and customisation costs incurred in implementing cloud computing arrangements. The comparatives have been restated as a result of a change
in accounting policy.
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2023 Interim Financial Results
18

AssetsNote
Dec 2022
NZ$M
Dec 2021
NZ$M
June 2022
NZ$M
Current assets:
Cash and cash equivalents
272
409 351
Contract assets2.4
110
60 127
Derivatives
6
11 17
Debtors
1,229
1,097 1,275
Inventories
1,695
1,426 1,507
Total current assets3,312 3,003 3,277
Non-current assets:
Property, plant and equipment
1,919
1,622 1,800
Investment property
43
26 34
Intangible assets
1,156
1,078 1,116
Right-of-use assets
1,344
1,337 1,351
Investments in associates and joint ventures
208
194 195
Debtors53
Inventories
447
190 292
Retirement plan assets
123
125 124
Derivatives
14
10 23
Deferred tax assets
226
212 209
Total non-current assets5,480 4,847 5,144
Total assets8,792 7,850 8,421
Liabilities
Current liabilities:
Creditors, accruals and other liabilities
1,335
1,222 1,512
Provisions
302
157 173
Lease liabilities
185
179 185
Current tax liabilities
6
31 107
Derivatives
7
11 4
Contract liabilities2.4
110
123 112
Borrowings5
70
122 64
Total current liabilities2,015 1,845 2,157
Non-current liabilities:
Creditors, accruals and other liabilities
29
34 28
Provisions
30
38 24
Lease liabilities
1,451
1,458 1,470
Derivatives
5
5 1
Borrowings5
1,638
744 976
Total non-current liabilities3,153 2,279 2,499
Total liabilities5,168 4,124 4,656
Equity
Share capital
2,991
3,168 3,003
Reserves
615
545 747
Shareholders' funds
3,606
3,713 3,750
Non-controlling interests
18
13 15
Total equity 3,624 3,726 3,765
Total liabilities and equity8,792 7,850 8,421
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated balance sheet (unaudited)
As at 31 December 2022
Fletcher Building Limited 2023 Interim Financial Results
19

Consolidated statement of cash flows (unaudited)
For the six months ended 31 December 2022
Note
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Cash flow from operating activities
Receipts from customers
4,344
4,062 8,273
Dividends received
1
15
Payments to suppliers, employees and other
(4,326)
(3,856)(7,582)
Interest paid
(68)
(49)(101)
Income tax paid
(154)
(13)
Net cash from operating activities
8
(203)157 592
Cash flow from investing activities
Sale of property, plant and equipment
5
1 7
Sale of subsidiaries51 51
Purchase of property, plant and equipment and intangible assets
(240)
(140)(399)
Purchase of investment property
(9)
(3)(5)
Return of advances to associates and joint ventures2
Investments in associates and joint ventures(12)(12)
Investments in subsidiaries
(57)
Net cash from investing activities(301)(103)(356)
Cash flow from financing activities
Issue of capital notes
10
90
Repurchase of capital notes(100)
Repurchase of shares(83)(250)
Repurchase of shares - transferred to treasury stock
(13)
Drawdown of borrowings
692
10 180
Repayment of borrowings
(7)
(4)
Principal elements of lease payments
(97)
(89)(186)
Contributions from non-controlling interests
23
2 13
Distribution to non-controlling interests
(8)
(8)
Dividends paid to shareholders of the parent
(172)
(148)(292)
Net cash from financing activities428 (308)(557)
Net movement in cash held
(76)
(254)(321)
Add: opening cash and liquid deposits
351
666 666
Effect of exchange rate changes on net cash
(3)
(3)6
Closing cash and deposits272 409 351
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2023 Interim Financial Results
20

1. CORPORATE INFORMATION
The condensed consolidated interim financial statements presented are those of Fletcher Building Limited and its subsidiaries (the
"Group"). Fletcher Building Limited is a company domiciled in New Zealand, registered under the Companies Act 1993 and is a FMC
Reporting Entity under Financial Markets Conduct Act 2013. The Group is a for-profit entity.
Basis of preparation
The condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand and the requirements of the Financial Markets Conduct Act 2013.
The condensed consolidated interim financial statements comply with NZ IAS 34 Interim Financial Reporting and do not include
all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s
annual consolidated financial statements as at 30 June 2022. In complying with NZ IAS 34, these statements comply with International
Accounting Standard 34 - Interim Financial Reporting.
2. KEY ESTIMATES, JUDGEMENTS AND OTHER FINANCIAL INFORMATION
2.1 SIGNIFICANT ITEMS
In reporting financial information, the Group presents non-GAAP performance measures, which are not defined or specified under
the requirements of NZ IFRS.
The Group makes certain significant item adjustments to the statutory profit measures in order to derive many of these underlying
performance non-GAAP measures. The Group’s policy is to exclude items that are considered to be significant in both nature and/or
quantum and where treatment as an adjusted item provides stakeholders with additional useful information to assess the year-on-
year underlying performance of the Group.
As at 31 December 2022, significant items totalled $154 million (31 December 2021: $43 million). $150 million relates to provisions for
costs to complete the New Zealand International Convention Centre and Hobson Street Hotel (NZICC) build, the Group's last project
as it winds down its operations in the vertical building sector. The remaining $4 million relates primarily to the relocation of Winstone
Wallboards®' operations to Tauriko ($3 million).
2.2 INTANGIBLE ASSET IMPAIRMENT TESTING
The Group performs a detailed impairment assessment annually and considers indicators of impairment at each interim reporting date.
At 31 December 2022, the Group performed a review of indicators of impairment for all cash-generating units with significant intangible
asset balances. No indicators of impairment have been identified as a result of this review.
Significant changes in the current reporting period
The financial position and performance of the Group were particularly affected by the following events and transactions during the
reporting period:
–On 1 September 2022, the Group acquired six Tumu® ITM building supply centres and a frame and truss operation, servicing the East
Coast, Hawke's Bay and Wairarapa regions from the Tumu® Group for consideration of $50 million plus a $10 million working capital
adjustment settled in January 2023. Refer to note 2.5.
–On 31 October 2022, the Group negotiated an additional Australian dollar denominated tranche of A$674.5 million to its syndicated
revolving credit facility. Refer to note 5.
–On 16 December 2022, the Group announced the recognition of an additional loss provision on the New Zealand International
Convention Centre and Hobson Street Hotel (NZICC) project, the provision of $150 million was recognised as a Significant Item as at
31 December 2022. Refer to notes 2.1 and 2.4.
Notes to the consolidated financial statements
Fletcher Building Financial Statements (unaudited)
Fletcher Building Limited 2023 Interim Financial Results
21

2.3 SUPPLEMENTARY DISCLOSURES: EARNINGS PER SHARE
The below disclosure has been included to provide additional useful information by removing the impact of significant items in the
current and prior year, and the resulting impact on the earnings per share measure.
The effect of significant items on earnings per share is as follows:
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Net earnings after taxation (as per consolidated income statement)
92
171432
Add back: Significant items after taxation
111
4352
Net earnings before significant items
203
214484
Net earnings per share before significant items (cents)
25.9
26.360.0
Net earnings per share - as reported per consolidated income statement (cents)
11.7
21.053.5
2.4 SUPPLEMENTARY DISCLOSURES: CONSTRUCTION ACCOUNTING
Construction work-in-progress is stated at cost plus profit recognised to date, less progress billings. Cost includes all expenditure
directly related to specific projects and an allocation of fixed and variable overheads incurred in the Group’s contract activities based on
normal operating capacity.
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Construction contracts with cost and margin in advance of billings
110
60 127
Contract assets11060 127
Construction contracts with billings in advance of costs and margin
110
123 112
Contract liabilities110123 112
Estimates and judgements are made relating to a number of factors when assessing construction contracts. These primarily include
the programme of work throughout the contract period, assessment of future costs after considering changes in the scope of work,
maintenance and defect liabilities, expected inflation (for unlet sub-trades) and performance bonuses or penalties. Construction
projects are inherently more uncertain earlier in their lifetime, which leads to a number of significant estimates and judgements
being made at these early stages.
The significant judgements inherent in accounting for the Group’s most material construction projects are:
–The extent to which a project progresses in line with the complex project programme and timetable previously formed and the
resulting impact of any programme delays or gains on project costs, especially project overheads (preliminary and general costs)
and any liquidated or other damages;
–Sub-contractor cost, in particular cost that is yet to be agreed in scope or price (including inflationary pressures) or that relate to
programme prolongation;
–Recovery of any insurance claims;
–The outcome of ongoing commercial negotiations, including elements of variable consideration and changes in project scope; and
–Future weather and ground conditions.
Notes to the consolidated financial statements (cont.)
Fletcher Building Limited 2023 Interim Financial Results
22

Notes to the consolidated financial statements (cont.)
Status of construction projects (> $200m original contract value) as at 31 December 2022:
A summary of total contracted work under construction and details of the major projects and their approximate stage of completion is
disclosed to demonstrate the uncertainty that remains on these projects.
Business Unit
Percentage of
completion
(% cost)
Forecast
completion*
New Zealand International Convention Centre and Hobson Street
Hotel (NZICC) - Fixed price contract and fire reinstatement
Buildings
67%2025
Pūhoi to Warkworth - Fixed price contract (Public Private Partnership)
Infrastructure
91%2023
Peka Peka to Ōtaki Expressway - Fixed price contract
Infrastructure / Higgins®
95%2023
* Calendar year
Revenue Backlog by Business Unit as at 31 December 2022:Current
Revenue
Backlog
NZ$M
Top 5 projects
as a % of
Revenue
Backlog
Buildings411100%
Infrastructure*39996%
Brian Perry Civil®*1,13637%
Higgins®81942%
South Pacific13692%
 2,901N /A
* There has been an internal reallocation of $258m in the orderbook, these works relate to the Watercare Enterprise Model and included in Infrastructure at June 2022, however have
been reallocated to Brian Perry Civil® for December 2022.
Revenue backlog refers to the level of construction work the Group is contracted to but is not yet complete as at period end. This
represents the performance obligations that are yet to be completed for the construction contracts active as at 31 December 2022.
The long term nature of the contracts held by the Buildings, Infrastructure, Brian Perry Civil® and Higgins® businesses will see these
performance obligations completed over a period generally between one to five years, although some may extend longer.
New Zealand International Convention Centre and Hobson Street Hotel (NZICC)
On 22 October 2019, there was a significant fire at the project construction site causing damage to both the New Zealand
International Convention Centre and Hobson Street Hotel (NZICC). Contract Works and Third Party Liability insurances are in
place on the project, and the Fletcher Construction Company Limited (FCC) is an insured party under these policies.
Following the latest review of the project's scope, damage assessment and methodology of rebuild (and as announced to the NZX
on 16 December 2022), as at 31 December 2022, the Group expects costs to increase and exceed the Contract Works and Third
Party Liability insurances coverage . The increases are attributed mainly to: (1) significant complexity of the remediation approach
and rebuild environment, particularly due to remediation of the water damage and mould that occurred following the fire; (2) as
a result of this complexity, a greater number of project resources being required to complete the rebuild works; and (3) inflation
of labour, trade and material costs, as is being experienced across the broader construction industry. In addition, certain costs
resulting from the fire may fall outside the scope of the Contract Works and Third Party Liability policies, with the possibility they
may be unrecoverable by the Group. The costs that are known or considered probable to be unrecoverable as at balance date
have been included in the assessment of the onerous contract provision.
As foreshadowed on 16 December 2022, the Group has reassessed its estimate of final margin loss on the project as at 31
December 2022 and, as a consequence, has recognised an additional provision of $150 million to complete the project.
This assessment of the cost to complete continues to rely on the application of estimates and judgements (e.g. programme
to complete, the measurement of remediation’s cost to complete, the likelihood of receipt of insurance recoveries and
quantification of any claims and costs that are outside of insurance cover) and, as such, may be subject to change as the project
progresses. As the project approaches completion, there is also risk of dispute over delay and cost.
Fletcher Building Limited 2023 Interim Financial Results
23

Pūhoi to Warkworth (P2W)
The Fletcher Construction Company Limited (FCC) and its 50% joint venture partner, Acciona (together Construction JV), are
subcontracted for the design and construction of P2W motorway, by the Northern Express Group (NX2), which is undertaking the
project on behalf Waka Kotahi NZ Transport Agency (Waka Kotahi).
With the project initially set to be completed in December 2021, the project experienced programme delays and inefficiencies
arising from the impacts of the 2020 NZ Government's COVID-19 pandemic response. In July 2020, an agreement was reached
between the parties which included revising the planned service commencement date to May 2022, with Waka Kotahi issuing a
notice acknowledging the right to relief under the Project Agreement for certain COVID-19 events.
COVID-19 events and their management by the authorities – including further lockdowns in 2021, introduction of a traffic light
system and national and regional border closures, and their consequent impacts on supply chain and resource availability –
further adversely impacted the progress of project construction and associated costs.
As at 31 December 2022, the Construction JV had lodged a claim with NX2 and Waka Kotahi for the impacts and delays arising
from COVID-19 events, and had entered into a Support Agreement with Waka Kotahi, which provided the Construction JV
with some interim and potentially refundable financial support, but without any party agreeing variations for compensation or
extensions of time for the project to reach the contract Service Commencement Date. If no variations or extension of time are
agreed between the parties or ultimately determined under the contract, the Construction JV will incur unrecoverable costs and
liquidated damages will apply beyond 16 August 2022, being the current contractual Planned Service Commencement Date.
Until the road is open and the final Service Commencement Date is reached, the size and makeup of Construction JV’s claim will
not be finalised. Absent earlier agreement between the Construction JV and Waka Kotahi otherwise, that claim will be resolved
through an agreed dispute resolution process no earlier than 2024. The Group’s current assessment of the cost to complete relies
on application of estimates and judgements (e.g. project programme, timing of contractual Service Commencement Date and
its view of the likelihood of receipt of further relief under the Project Agreement and quantification of any claims and costs under
this relief) and, as such, may be subject to change as the project progresses.
The Group has assessed the facts and circumstances known to it relating to the Construction JV’s estimate of cost to complete,
timing of achieving Service Commencement Date and merits of Construction JV’s claims and concluded that no additional
provision is required to be recognised as at 31 December 2022. There remains a risk that, ultimately, the full amount of the
Construction JV’s claim will not be recovered.
2.5 BUSINESS COMBINATIONS
Tum u ®
On 1 September 2022, the Group acquired six Tumu® ITM building supply centres and a frame and truss operation, servicing the East
Coast, Hawke's Bay and Wairarapa regions from the Tumu® Group. The acquired branches are full service building supplies merchants
selling to both wholesale and retail customers as well as a frame and truss manufacturing business.
The acquisition delivers a stronger proposition and level of capability in the building supply market in the East Coast of the North
Island, seen as a strategically valuable region for the Distribution division. The note below considers all seven entities.
For the entities acquired, less than 100% of the equity shares were acquired. Non-controlling interest share ownership percentages
will be finalised and will range from 2.12% to 25% with the Group electing to measure the non-controlling interests in the acquiree by
reference to the non-controlling interests proportionate ownership of net assets of the acquiree.
The fair values of the identifiable assets and liabilities of the seven entities combined as at the date of acquisition are on the following
page. The Group has 12 months from the date of acquisition to finalise the acquisition accounting and therefore the amounts
presented below are provisional.
Notes to the consolidated financial statements (cont.)
Fletcher Building Limited 2023 Interim Financial Results
24

Notes to the consolidated financial statements (cont.)
Provisional values at acquisition date
NZ$M
Assets
Property, plant and equipment3
Debtors19
Inventories16
Deferred tax asset1
Right-of-use assets19
58
Liabilities
Creditors, accruals and other liabilities16
Lease liabilities19
35
Total identifiable net assets at fair value
23
Goodwill arising on acquisition37
Purchase consideration transferred60
The fair value of the trade receivables amounts to $17 million. The gross amount of trade receivables is $17 million and it is expected that
the full contractual amounts can be collected.
The Group measured the acquired lease liabilities using the present value of the remaining lease payments at the date of acquisition.
The right-of-use assets were measured at an amount equal to the lease liabilities and adjusted to reflect the favourable terms of the
lease relative to market terms.
Goodwill is allocated to PlaceMakers® as a single cash-generating unit, reflecting the synergies created with PlaceMakers® through
operational and supply chain efficiencies and access to the untapped regional market. PlaceMakers® is part of the Distribution division.
The amount recognised is not expected to be deductible for tax purposes.
The Group incurred acquisition related costs of $1 million in FY22 which were recognised in significant items. There were no significant
item charges in the six months to 31 December 2022. The transaction is debt free and therefore after consideration of acquisition costs,
the net cash flow on acquisition is $61 million, with a $10 million working capital adjustment settled in January 2023.
Other acquisitions
On 2 December 2022, Fletcher Building Australia, a fully owned subsidiary of Fletcher Building Limited, entered into and settled a Sale
and Purchase Agreement (SPA) to acquire Water Filters Australia for consideration of A$5.2 million plus A$0.2 million working capital
adjustment.
Financial impact
If the above combinations had taken place at the beginning of the year, Group revenue would have been $4,310 million and Group
EBIT would have been $208 million. From the date of acquisition, Tumu® and other acquisitions have contributed $41 million to Group
revenue and $4 million to Group EBIT.
Fletcher Building Limited 2023 Interim Financial Results
25

3. SEGMENTAL INFORMATION
Segmental information is presented in respect of the Group’s industry and geographical segments. The use of industry segments
as the primary format is based on the Group’s management and internal reporting structure, which recognises groups of assets
and operations with similar risks and returns. Inter-segment pricing is determined on an arm’s length basis.
Industry segments
Gross Revenue
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Building Products
835
765 1,610
Distribution
965
866 1,789
Concrete
487
428 881
Australia
1,534
1,388 2,806
Residential and Development
219
318 692
Construction
650
720 1,559
Other
5
5 11
Total gross revenue
4,695
4,490 9,348
Less: intercompany revenue
(411)
(426)(850)
External revenue
4,284
4,064 8,498
External Revenue
Building Products
684
613 1,301
Distribution
948
854 1,764
Concrete
344
301 626
Australia
1,500
1,354 2,740
Residential and Development
214
312 680
Construction
594
630 1,387
Group
4,284
4,064 8,498
EBIT before significant items
Building Products
118
96 210
Distribution
65
54 137
Concrete
74
61 128
Australia
82
45 113
Residential and Development
49
112 217
Construction
5
(10)14
Corporate and Other
(33)
(26)(63)
Group
360
332 756
Depreciation, depletion and amortisation expense
Building Products
27
25 52
Distribution
27
24 48
Concrete
33
33 66
Australia
66
63 128
Residential and Development
1
1 3
Construction
20
20 41
Corporate
6
6 12
Group
180
172 350
Notes to the consolidated financial statements (cont.)
Fletcher Building Limited 2023 Interim Financial Results
26

Notes to the consolidated financial statements (cont.)
Capital expenditure
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Building Products
126
79 204
Distribution
43
3 11
Concrete
21
35 81
Australia
16
11 55
Residential and Development
9
3 8
Construction
9
9 29
Corporate
23
4 33
Group
247
144 421
Funds*
Building Products
1,1 8 0
870 1,024
Distribution
299
195 246
Concrete
631
586 597
Australia
1,448
1,320 1,365
Residential and Development
914
649 651
Construction
164
210 278
Corporate
(1,012)
(104)(396)
Group
3,624
3,726 3,765
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes. Group balances such as borrowings and taxation are allocated to
Corporate as these are managed at a Group level.
Geographic segments
External Revenue
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
New Zealand
2,705
2,573 5,527
Australia
1,507
1,427 2,813
Other jurisdictions
72
64 158
Group
4,284
4,064 8,498
EBIT before significant items
New Zealand
272
243 594
Australia
82
86 152
Other jurisdictions
6
3 10
Group
360
332 756
Funds*
New Zealand
3,196
2,487 2,788
Australia
1,497
1,378 1,424
Other (including debt and taxation)
(1,069)
(139)(447)
Group
3,624
3,726 3,765
Non-current assets
+
New Zealand
3,499
2,838 3,101
Australia
1,572
1,560 1,634
Other jurisdictions
46
49 53
Group
5,117
4,447 4,788
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes. Group balances such as borrowings and taxation are allocated to
Corporate as these are managed at a Group level.
+ Excludes deferred tax assets, retirement plan surplus and financial instruments.
Fletcher Building Limited 2023 Interim Financial Results
27

Notes to the consolidated financial statements (cont.)
4. TAXATION EXPENSE
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Earnings before taxation137
237598
Taxation at 28 cents per dollar
38
66167
Adjusted for:
Difference in tax rates
1
1
Non-assessable income
(9)
(4)(8)
Non-deductible expenses
2
23
Tax (gains)/losses for which no deferred tax asset was
recognised
(1)
1013
Utilisation of previous unrecognised tax losses(12)(13)
Tax in respect of prior years
3
1(4)
Tax expense on earnings34
63159
Tax expense on earnings before significant items
77
63161
Tax benefit on significant items
(43)
(2)
34
63159
Total current taxation expense
31
63163
Total deferred taxation benefit/(expense)
3
(4)
34
63159
The net deferred tax asset balance of $226 million at 31 December 2022 (December 2021: $212 million and June 2022: $209
million) largely comprises Construction provisions and Australian tax losses incurred in the current and prior periods. It is
expected that there will be sufficient future earnings in New Zealand and Australia to utilise the deferred tax asset in each of
these jurisdictions.
5. BORROWINGS
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Private placements
461
475 481
Bank loans
860
180
Capital notes
359
361 350
Other loans
28
30 29
Carrying value of borrowings (as per consolidated balance sheet) 1,708
866 1,040
Less: value of derivatives used to manage changes in hedged risks
on debt instruments
(5)
(15)(19)
Economic debt 1,703
851 1,021
Less: Cash and cash equivalents
(272)
(409)(351)
Net debt 1,431
442 670
Fletcher Building Limited 2023 Interim Financial Results
28

Notes to the consolidated financial statements (cont.)
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Carrying value of borrowings included within the consolidated balance
sheet as follows:
Current borrowings
70
122 64
Non-current borrowings
1,638
744 976
Carrying value of borrowings (as per consolidated balance sheet) 1,708 866 1,040
During the period ended 31 December 2022, the Group added an Australian Dollar denominated 3 year tranche (“Tranche D”) of
$674.5m to its syndicated revolving credit facility. Tranche D can be borrowed in Australian Dollars only. There were no other material
changes to the terms of the syndicated revolving credit facility.
The lenders that participated in Tranche D were Australia and New Zealand Banking Group Limited, Westpac Banking Corporation, MUFG
Bank Ltd - Sydney Branch, The Hongkong and Shanghai Banking Corporation Limited - Sydney Branch, Mizuho Bank Ltd, Industrial and
Commercial Bank of China Limited, Bank of China Limited (Auckland Branch), Citibank N.A. – Sydney Branch, First Commercial Bank Ltd,
Hua Nan Commercial Bank Ltd - Sydney Branch, and Taiwan Cooperative Bank Ltd.
6. FAIR VALUE MEASUREMENT
Financial instruments are measured at fair value using the following fair value measurement hierarchy:
(Level 1) Quoted prices (unadjusted) in active markets for identical assets or liabilities.
(Level 2) Inputs that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) other than
quoted prices included within level 1.
(Level 3) Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
All of the Group's derivatives are in designated hedge relationships and are measured and recognised at fair value. All derivatives
are level 2 valuations based on accepted valuation methodologies. Forward exchange fair value is calculated using quoted forward
exchange rates and discounted using yield curves derived from quoted interest rates matching maturity of the contract. The fair value
of electricity price swaps is measured using a derived forward curve and discounted using yield curves derived from quoted interest
rates matching the maturity of the contract. Interest rate derivatives are calculated by discounting the future principal and interest cash
flows at current market interest rates that are available for similar financial instruments. The interest rates across all currencies used to
discount future principal and interest cash flows are between 2.26% and 6.75% (December 2021: (0.6)% and 4.1%; June 2022: (0.3)% and
5.65%) including margins, for both accounting and disclosure purposes.
7. CONTINGENCIES AND COMMITMENTS
Product claims
Iplex® Australia has received a number of product quality complaints relating to a hot and cold water polybutylene pipe product
it previously manufactured (under the name "Pro-fit"). The complaints relate to leaks in homes, primarily built by group home
builders in Western Australia, which have caused repair or replacement of the pipes and, in some cases, damage to the affected
homes. No legal proceeding has been commenced but the complaints directed at Iplex® Australia assert that the cause of the
failures is attributable to it. Iplex® Australia has not identified the root cause or causes of the leak, including whether they are the
consequence of pipe defect, building practises, local conditions or a combination of factors. The Group is also aware that the
Western Australia building regulator (known as DMIRS) is undertaking its own investigation. Iplex® Australia’s exposure to costs
incurred by the leaks, if any, will depend on the final determination as to their causes (or causes) and the extent to which it and/or
third parties are responsible and any relevant insurance policies respond. Clarification of all these matters may take some time to
be finally determined. There remains a risk the exposure of Iplex® Australia to these claims will be greater than the amount it has
currently allowed.
Silicosis
Laminex® Australia (together with other engineered stone manufacturers and fabricators) continues to be the subject of a number
of silica related personal injury claims based in Queensland. Additional silica related injury claims were received or notified
outside Queensland in the period ended 31 December 2022. The Group has considered the exposure Laminex® Australia may
have for the claims received to date and, to the extent it considers appropriate to do so, has provided for them. There remains a
risk that, ultimately, the final exposure of Laminex® to these claims will be greater than the amount currently allowed.
Fletcher Building Limited 2023 Interim Financial Results
29

Notes to the consolidated financial statements (cont.)
Construction defects
As part of its business, the Group’s Construction division has exposure for defects in construction projects post their completion.
That exposure arises either from the terms of the relevant contract or at law. As at 31 December 2022, the Group was subject
to claims of this type. In assessing them, the Group has applied estimates and judgements, including assessing the merits of
the claim, the cost to repair and the likelihood of receipt of payment or other recovery. These estimates and judgements may
change as the claim or repair work progresses. The Group has considered its exposure to the claims received to date and, where
it considers appropriate to do so, has provided for them. There remains a risk that, ultimately, the final exposure of the Group to
these claims will be greater than the amount allowed.
Onerous contract provisions
The Group's Construction division has a diverse portfolio of long term construction contracts. The nature and complexity of
these contracts means the outcome can be subject to a significant level of estimation uncertainty, particularly in relation to the
likelihood and quantum of any variation claims receivable, as well as the quantification and assessment of any other claims/
counterclaims that may exist. Actual outcomes could be different from estimated amounts which may impact projection positions
recognised. The nature of significant estimates, judgements and risk are outlined in note 2.4.
8. RECONCILIATION OF NET EARNINGS TO NET CASH FROM OPERATING ACTIVITIES
Six months
Dec 2022
NZ$M
Six months
Dec 2021
NZ$M
Year ended
June 2022
NZ$M
Net earnings
92
171 432
Earnings attributable to minority interest
11
3 7
103
174 439
Add/(less) non-cash items:
Depreciation, depletions and amortisation
180
172 350
Other non-cash items
120
(34)(27)
Taxation
(120)
63 146
Net (gain)/loss on disposal of businesses and property, plant and equipment
(1)
43 45
179
244 514
Net working capital movements
Residential and Development
(270)
(107)(103)
Construction
(38)
11 (55)
Other divisions:


Debtors
75
35 (48)
Inventories
(58)
(122)(239)
Creditors
(194)
(78)84
(485)
(261)(361)
Net cash from operating activities(203)
157 592
9. SUBSEQUENT EVENTS
On 15 February 2023, the Directors declared an interim dividend of 18 cents per share, payable on Thursday 6 April 2023.
Fletcher Building Limited 2023 Interim Financial Results
30

Independent auditor’s review report to the
shareholders of Fletcher Building Limited
Conclusion
We have reviewed the interim financial statements of Fletcher Building Limited (“the Company”) and its subsidiaries (together “the
Group”) on pages 16 to 30 which comprise the consolidated balance sheet as at 31 December 2022, and the consolidated income
statement, consolidated statement of comprehensive income, consolidated statement of movements in equity and consolidated
statement of cash flows for the six months ended on that date, and a summary of significant accounting policies and other explanatory
information. Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial
statements on pages 16 to 30 of the Group do not present fairly, in all material respects the consolidated financial position of the Group
as at 31 December 2022, and its consolidated financial performance and its consolidated cash flows for the six months ended on that
date, in accordance with New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting and International
Accounting Standard 34: Interim Financial Reporting.
This report is made solely to the Company’s shareholders, as a body. Our review has been undertaken so that we might state to the
Company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders as a
body, for our review procedures, for this report, or for the conclusion we have formed.
Basis for conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor
of the Entity. Our responsibilities are further described in the Auditor’s responsibilities for the review of the financial statements section of
our report. We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of
the annual financial statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements.
Ernst & Young provides agreed upon procedures and other assurance related services to the Group. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other
relationship with, or interest in, the Group.
Directors’ responsibility for the interim financial statements
The directors are responsible, on behalf of the Entity, for the preparation and fair presentation of the interim financial statements
in accordance with New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting and International
Accounting Standard 34: Interim Financial Reporting and for such internal control as the directors determine is necessary to enable the
preparation and fair presentation of the interim financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires
us to conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken as a
whole, are not prepared in all material respects, in accordance with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting and International Accounting Standard 34: Interim Financial Reporting.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. The procedures performed in a review are substantially less than those performed in an
audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently do not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an
audit opinion on those interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Brent Penrose.
Chartered Accountants
Auckland
15 February 2023
Fletcher Building Limited 2023 Interim Financial Results
31