Fletcher Building 2023 Macquarie Australia Conference

Macquarie Australia Conference
Presentation
Fletcher Building Limited
Ross Taylor
Chief Executive Officer
May 2023

Significant NZ & Australia building products & solutions provider with strong
market positions & overall revenue roughly weighted to the market sectors
Focus across NZ & Australia
NZX/ASX listed: FBU
Strong market positions
Page 2 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023
51%
Residential
27%
Commercial
22%
Infrastructure
Revenue
1
weighted to market
Businesses
with
#1 or #2
market
positions
Recognised /
iconic
brands
1. FY22 Revenue

While residential is down in short-term, our geographic & building sector
focus is supported by solid long-term macro tailwinds in New Zealand...
Source: Infometrics, NZIER
Notes:
1
Net migration of overseas residents or New Zealanders who cumulatively spend 12 of the next 16 months in New Zealand
WPIP = Work Put In Place is in nominal terms
0
4
8
12
16
Commercial WPIP ($b)
Commercial investment forecast robust
0
4
8
12
16
Infrastructure WPIP ($b)
Driving infrastructure projects
(25)
0
25
50
75
100
Strong NZ migration patterns continue
1
•Strong track record of immigration to
NZ at one of highest levels in OECD
•Robust housing demand: housing stock
undersupply persists & elevated
residential consents
•Commercial investment continues in a
positive trajectory, driven by robust
immigration & urban development
•Pipeline of large projects, eg, Auckland
Airport redevelopment
•Infrastructure deficit will require
decades of large investment across key
asset classes i.e., water, transport
•Robust government balance sheet
underpins funding and commitments
to infrastructure spend
Page 3 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023
‘000

...as well as in Australia
Page 4 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023
0
10
20
30
40
50
60
70
Commercial Work Done (A$b)
0
30
60
90
120
150
Infrastructure Work Done (A$b)
Strong pipeline of infrastructure projects
0
5
10
15
20
25
30
Solid population growth continues
•Strong rebound of migration post-
border closures
•Although residential approvals tracking
lower in short term, housing sentiment
improving and strong rental market
•Commercial investment continues in a
positive trajectory, driven by the
backlog of projects
•Major healthcare projects are now
underway
•The publicly funded infrastructure
boom continues, supported by a
pipeline of major transport projects
•Population growth will require decades
of large investment across key asset
classes i.e., water, transport
Population (millions)
Source: BIS Oxford
Notes: Work Done is in nominal terms
Commercial investment forecast robust

Our businesses are across the building value chain, and they are either operating in
their industry top quartile, or we have plans to get them there
EBIT Margin Industry Economic Performance
Building Products NZ DistributionConcreteResidential & Dev.ConstructionAustralia
Upper
quartile
Median
Lower
quartile
Division
now
now
now
now
now
now
FY19
FY19
FY19
FY19
FY19
FY19
Note: As assessed against global listed peers – EBIT margins for peers are for the last twelve months as at May 2022
Source: CapitalIQ
Page 5 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023

NZ & Australia relative geographic isolation & our scale “In-Country” business positions, means
we’re well-positioned for macro-trends... We can be an innovation fast follower with the scale to
invest ahead of the competition
Page 6 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023
Advancements in
Automation
Evolving Building &
Living Choices
Emerging Product &
Service Innovation
Sustainability
Opportunities
Taking advantage of
increasingly cost
efficient automation for
our strategic assets
Bringing world-leading
technology to NZ & AU
to drive scale efficiencies
Global screening for &
development of new and
innovative products and
services
Building best-in-class
digital & eCommerce
infrastructure to meet
customer demands
Tailoring solutions for
typology, modular,
densification & green-
living trends
Investing in technology
& processes to
significantly reduce
carbon emissions
Creating circular
economies for our
products & minimising
resource wastage
Understanding how our
products & services can
deliver superior end-to-
end solutions
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Our vision, purpose and strategic goals continue to underpin our journey
Vision
Purpose
Strategic
Goals
To be the leader in New Zealand and Australian building products and solutions
Improving the world around us through smart thinking, simply delivered
Zero injuries every
day
Market leading
customer
solutions and
services
Lowest delivered
cost
Economic
performance
of each business
in industry
top quartile
Leadership in
innovation,
sustainability, and
growth via
disruption
Page 7 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023

Our strategy positions us well to continue to drive business performance
in the short- and long-term
Significant
near-term
profit growth
Strong enduring
financial
position, well-
positioned
for a softer
FY24
Longer term
non-financial
metrics
underpin
sustainable
outperformance
Established
pipeline of
growth
investments –
primarily
organic
Retain benefit
of underlying
margin gains
and drive
further
improvement
01
0402
03

05
FY23 EBIT target
$800m to $855m
Targeting further
profit improvements
over medium term
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
Safety
People
Customer
Environment
Note: EBIT and margin are before significant items
Page 8 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023

1. Significant near-term profit growth
1. Before significant items
2. FY19 is a pro forma number adjusted for discontinued operations and IFRS16 to allow for like-for-like comparison
3. Excluding Iplex Australia Pro-fit costs
EBIT
1
($m)
598
160
668
756
800-855
FY19FY20FY21FY22FY23F
+>$200m
2
Page 9 | Fletcher Building Limited Macquarie Conference Presentation| © May 2023
EBIT
1
margin (%)
7.2%
2.2%
8.2%
8.9%
FY19FY20FY21FY22
+170
bps
2
3

2. Strong enduring financial positions and returns
1.Return on Funds Employed (ROFE) is EBIT excluding significant items to average funds (net debt and equity less deferred tax asset)
2.Leverage = Net Debt / EBITDA before significant items
Leverage
2
& Funding
0.61x
FY22HY23
Target
range
2.0x
1.0x
FY20
Return on Funds Employed
1
(%)
19.3%
17.8%
FY22HY23
Exceeded ROFE ≥ 15% target
Dividends (cps)
≥ 15%
Target
Total debt facilities $2.5b, liquidity
$1.1b at HY23
1.25x
18.0 18.0
22.0
FY22HY23
Interim DividendFinal Dividend
40.0
Page 10| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

2. Well positioned for a softer FY24
Strong balance sheet
Most businesses have a differentiated and sustainable competitive position
Positioning cost base and working capital now for softer FY24, focused on margin protection
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
Page 11| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

3. Retain benefit of underlying margin gains & drive further performance
improvement
Continuing to drive
economic performance of
each business to be in its
industry upper quartile
Investment growth
targeted in margin-
accretive NZ segments
and Adjacencies
Continued improved
performance in Australia
margins
More focused &
profitable Construction
business
We have a robust plan to drive further margin improvement across the portfolio
Page 12| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

4. Established pipeline of growth investments – primarily organic
c.$700m growth capex FY23-26
Waipapa
Timber
acquisition
Insulation
(Code
Change)
New timber /
woodpanels
products
c.$100m full run-rate EBIT
1
growth
Circular
economy
New Frame &
Truss plant
(automation)
Page 13| Fletcher Building Limited Macquarie Conference Presentation| © May 2023
1. Before significant items
c.$25m from
TUMU Distribution &
WaipapaTimber
acquisitions in FY24
c.$75m from organic projects
starting to contribute from
FY25-26
Screened against robust criteria
M&A
TUMU
acquisition
ROFE ≥ 15%
Resilient, attractive
markets at Mid Cycle levels
Rapid runway to earnings
Organic
projects

5. Longer term non-financial metrics underpin achieving sustainable
outperformance
Safety: good progress continues
Engagement: focus on continued improvement
Total Recordable Injury
Frequency Rate
1
5.0
3.4
3.16
FY21FY22HY23
Employee Engagement Rating
66%
69%
FY21FY22
1. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries
2. Leadership includes all employees that are classified as frontline leaders, leaders of leaders, GMs & CEs
94%
(925) sites injury free
19%
women in leadership
2
Page 14| Fletcher Building Limited Macquarie Conference Presentation| © May 2023
100%
sites injury free
NowTa rge t
Nil
NowTa rge t
30%
women in leadership
2
by FY27
≥80%
Total Recordable Injury
Frequency Rate
1
Employee Engagement Rating

Customer: driving customer solutions & services
Sustainability: 30% lower carbon by 2030, net zero by 2050
1. Net Promoter Score (NPS) measures how satisfied our customers are with our business
2. ‘000 Tonnes
-30% FY30
NET ZERO FY50
51%
waste diverted from landfill
≥ 55
Net Promoter Score
1
Online sales run-rate
1,238
1,120
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY18CY22
Carbon (CO
2
) Emissions
2
Page 15| Fletcher Building Limited Macquarie Conference Presentation| © May 2023
5. Longer term non-financial metrics underpin achieving sustainable
outperformance
40
41
36
FY20FY21FY22
FY18FY19FY20FY21FY22
$500m
$0m
NowTa rge tNowTa rge t
70%
waste avoided, recycled
and/or reused by FY26

Our strategy positions us well to continue to drive business performance
in the short- and long-term
Significant
near-term
profit growth
Strong enduring
financial
position, well-
positioned
for a softer
FY24
Longer term
non-financial
metrics
underpin
sustainable
outperformance
Established
pipeline of
growth
investments –
primarily
organic
Retain benefit
of underlying
margin gains
and drive
further
improvement
01
0402
03

05
FY23 EBIT target
$800m to $855m
Targeting further
profit improvements
over medium term
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
Safety
People
Customer
Environment
Note: EBIT and margin are before significant items
Page 16| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

Fletcher Building Limited
Questions
Appendix Slides

Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothis
documentandtheverbalorwrittencommentsofanypersonpresentingit.
Thispresentationdated2 May2023shouldbereadinconjunctionwith,andsubjectto,theexplanationsandviewsoffutureoutlookonmarketconditions,earningsandactivities
giveninthe2023InterimFinancialResults(togetherwithmanagementcommentary)publishedon15February2023.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems. A numberofnon-GAAP
financialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancial
statementsforthesixmonthsended31December2022.Yo ushouldnotconsideranyofthesestatementsinisolationfrom,orasa substitutefortheinformationprovidedinthe
FinancialStatementsforthesixmonthsended31December2022,whichareavailableatwww
.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,
shareholdersnoranyotherpersongivenanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessoftheinformationandtothemaximum
extentpermittedbyl a w,nosuchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arising
fromthispresentationoranyinformationsuppliedinconnectionwithit.
Thispresentationmaycontainforwardlookingstatements,thatisstatementsrelatedtofuture,notpast,eventsorothermatters. Forwardlookingstatementsmayinclude
statementsregardingourintent,belieforcurrentexpectationsinconnectionwithourfutureoperatingorfinancialperformance,ormarketconditions. Suchforwardlooking
statementsarebasedoncurrentexpectations,estimatesandassumptionsandaresubjecttoa numberofrisksanduncertainties,includingmaterialadverseevents,significantone-
offexpensesandotherunforeseeablecircumstances. Thereisnoassurancethatresultscontemplatedinanyoftheseprojectionsandforwardlookingstatementswillbe
realised. Actualresultsmaydiffermateriallyfromthoseprojected. Exceptasrequiredbyl a w,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonis underany
obligationtoupdatethispresentationatanytimeafteritsreleaseortoprovidefurtherinformationaboutFletcherBuilding.
Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceora recommendation.
Page 18| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

We are a scale in-country manufacturer & distributor of building products,
with complementary residential development & construction businesses
Note: Key figures are for FY22. Rev is Gross Revenue; EBIT is EBIT before significant items, NZ includes corporate costs of $63m. NZ Construction
includes South Pacific. All currency in this presentation is in NZD. Brands shown are not exhaustive
New Zealand
$6.5b Rev $643m EBIT 10,100 people
$2.8b Rev $113m EBIT 4,600 people
Australia
Products & Distribution
Residential & Dev’tConstructionProducts & Distribution
46%30%7%17%
% Group Rev.
Well-known
brands
with
#1 or #2
market
positions:
Key Figures
Page 19| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

Sustainability important part of our DNA
We will ensure our growth is achieved while remaining true to
our purpose:
A safe, diverse and inclusive workplace
Our community at the heart of what we do
Move progressively to a net positive environmental
impact, founded in managing climate impact & risk
Lead the way in sustainable building products &
solutions
Circular economy commitment across our
businesses
“Improving the world around us through smart thinking simply delivered”
Leading to world-class sustainability credentialsWe have a focussed plan to drive sustainability outcomes
Member of S&P Sustainability Yearbook 2023
(Building Products sector, Top 15%)
Listed in Dow Jones Sustainability Index for
Australia (Building Products sector)
CDP ‘A-‘ rating – in Leadership category for
management of our carbon emissions
CDP ‘A’ rating for Supplier Engagement –in
CDP Leadership category
MSCI ‘AA – Leader’ ESG rating
Page 20| Fletcher Building Limited Macquarie Conference Presentation| © May 2023

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

Fletcher Building 2023 Macquarie Australia Conference
Auckland, 2 May 2023: Fletcher Building Limited will give the attached
presentation to the 2023 Macquarie Australia Conference today.
ENDS

Authorised by:
Chris Reid
Company Secretary

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