Update on NZICC, Group FY23 Guidance Confirmed

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



Update on NZICC, Group FY23 Guidance Confirmed

Auckland, 8 August 2023: Fletcher Building (the “Company”) today announced an update on the
New Zealand International Convention Centre and Hobson Street Hotel project (“NZICC”) and
confirmed its FY23 earnings guidance.
A meeting of the Company’s Audit and Risk Committee today reviewed key accounting judgments
on NZICC. On project costs, the Company had disclosed at its June Investor Day up to $50 million
of cost risk, and it was determined that $50 million should be recorded to reflect this risk. On
Contract Works Insurance (CWI), the amounts available to the Company have reduced by c.$20
million due to additional claims paid to Sky City (also an insured under the CWI policy).
Offsetting the cost and CWI impacts, the Company considers that recoveries available to it under
the project Third Party Liability (TPL) insurance have risen – from a prior estimate of c.$35 million
to an amount in excess of $100 million. However, while the Company considers it has good
grounds to recover these amounts, it has determined that these proceeds from the TPL policy are
not yet virtually certain as required by accounting standards to be recognized in its accounts.
Considering the above, the Company has determined that it will make an additional provision on
NZICC of $105 million in its FY23 accounts. This amount is the aggregate of the $50 million of
additional cost; the $20 million lower CWI revenue; and a reassessment of assumed TPL
recoveries to nil at this point, compared to $35 million previously. The additional provision will be
classified as a Significant Item.
The Company will continue to pursue its rights to recovery under the TPL policy.
The Company also confirms that its FY23 earnings remain in line with the guidance provided at
the June Investor Day. The Company’s full FY23 results and financial statements will be released
on Wednesday 16
th
August.



#Ends
Authorised by:
Andrew Clarke
Company Secretary

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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