Annual Shareholders’ Meeting documents and trading update

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

Annual Shareholders’ Meeting documents and trading update

Auckland, 27 October 2023: Fletcher Building is holding its 2023 Annual Shareholders’
Meeting today at 10.30am NZDT. Attached are the:

- Chair’s address
- Chief Executive Officer’s address
- ASM presentation

Included in the Chief Executive Officer’s address is an update on trading for the FY24 year.

In his address to shareholders, CEO Ross Taylor said: “For our New Zealand materials and
distribution businesses, the infrastructure and commercial sectors remain robust, while volumes
in the residential sector are around 5% softer than our prior guidance. Our market shares are
stable and we are seeing solid pricing in our materials businesses, however there is strong price
competition in the merchant distribution channel. As such, EBIT (before significant items) for the
New Zealand materials and distribution businesses is tracking slightly behind our previous
expectations.

“In Australia, the Division is trading well. We expect 1H24 EBIT (before significant items) to be
broadly in line with 1H23, despite a softer market.

“Encouragingly we are seeing “green shoots” in the New Zealand housing market. House sales
for our Residential and Development Division are tracking well, averaging 20-25 per week so far
this year. House prices have stabilised and are starting to trend up slightly. If this momentum in
sales continues, there could be upside to our prior 700-800 unit sales target in FY24. We continue
to expect earnings to be weighted to the second half due to the profile of settlements.

“On our Construction legacy projects, we are on track to finish physical works on the final three
projects through the 2024 calendar year. As we noted in August 2023, there continues to be
some cost risk to manage as we complete these projects. We also need to secure claims and
insurance recoveries, and manage any wash up issues that may arise, to hold our current
provisions. Resolution of the claims and recoveries, particularly on the NZICC and Puhoi to
Warkworth projects, is likely to take until FY25-FY26. On Wellington Airport carparks, we are
working with the Airport to determine an agreed remediation, but any costs we decide to take
in that regard are not covered by present provisions.

“We expect trading cash flows (excluding legacy construction) to be robust in FY24. As
previously guided, our leverage (net debt / EBITDA) is expected to move to the upper end of our
1x-2x range, however we are committed to remaining within this target range.”

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
“On the Western Australian plumbing issues, we continue to use the A$15 million interim fund
(put in place earlier in FY23) to support the industry and homeowners while causation of the
plumbing failures is better understood. And we will work with the industry and regulators to help
develop an effective solution.

“We are well positioned to perform through the cycle and then drive both further performance
improvements and upside volumes when the cycle turns. We are very advanced on our $800
million of committed growth projects, which we are confident will be delivered well, and will set
us up for significant extra earnings in the next two to three years. There remain plenty of other
growth opportunities, which we can take advantage of, once we have a firmer sense of when the
cycle is returning to growth.

“Reflecting on the past year, I’m pleased with the way our people have continued to show their
resilience, innovative spirit and commitment to supporting our customers and each other. I also
wish to acknowledge and thank our shareholders, customers, and suppliers for their continued
support.”


#Ends

Authorised by:
Ashleigh Harding
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

---

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

Friday 27 October 2023

FLETCHER BUILDING LIMITED 2023
Annual Shareholders’ Meeting
Chair’s Address

FY23 key financial results

On behalf of the Board, I am pleased to report that in FY23 Fletcher Building delivered strong
underlying earnings of $798 million, and a strong EBIT margin (excluding significant items) of
9.4%.

This performance was well ahead of the prior year, and was achieved despite a slowing
residential market and disruption from severe weather events. We believe that it reflects the
significant operational improvements made in the business in recent years.

I acknowledge it was disappointing that we needed to book additional fire-related provisions on
the NZ International Convention Centre in the year. These were the main reason for the drop in
our Net Earnings After Tax, to $235 million for the year. I will speak further to the legacy
construction projects, as well as the Western Australian plumbing matter, later in my address.

On dividend, the Board paid total dividends of 34 cents per share for the financial year. This
reflects a solid FY23 earnings result, while also having regard to the expected cash flow impact
of the legacy construction projects through FY24.

FY23 key non-financial results

The Board remains committed to driving strong outcomes across a range of ESG measures and
continuing to drive a performance culture. As with our financial performance, we also made
progress on our key non-financial measures and outcomes during the year.

We continued to make our workplace safer. Protect, our multi-year safety programme, produced
further improvements with a TRIFR of 3.1, representing a 12% reduction on last year. This
translated to 90% - or 903 of our sites - being injury free.

On sustainability, we continued to make very good progress on reducing our carbon emissions,
which are now down 16% from our 2018 base levels.

Service performance to our customers also improved through the year, and our Net Promoter
Score increased to an average of 40. This reflects ongoing improvements in on-time deliveries,
stock availability, and online offerings.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
Importantly, we also saw our overall employee engagement increase to an employee net
promoter score of 26. While the improvement was pleasing, this result only places us in the
median for global organisations, so we do have more work to do if we are going to achieve global
“best in class” levels of 40 and above.

Western Australia Plumbing

Turning to the Western Australia plumbing matter, I would like first to acknowledge the impact
and distress on homeowners from the plumbing failures that are occurring.

I wish to assure our shareholders and all our stakeholders that the Board is taking this matter
very seriously. We have a dedicated Board committee in place, which provides strong oversight
on the developing matters.

The Company’s approach has had three aspects:

• First, we have put in place an interim A$15 million fund to support builders and plumbers to
repair leaks and any associated damage for homeowners while causation of the plumbing
failures is better understood.

• We have undertaken detailed product testing with global experts, and gathered evidence
on installation practices from hundreds of homes. To date, we have not found fault with our
product, but we have kept, and will keep, an open mind.

• For its part, Fletcher Building is committed to help find an industry solution. A proportionate
and evidence-based solution is in everyone’s interests, especially those homeowners who
have been affected.

Ross will build on this further in his address.

Where did we start from in 2018?
At this point, I would like to reflect on how the Company has evolved over the past six years or so
since the current Board was appointed.

In 2018, our underlying businesses in New Zealand had strong market positions, but they had
been underinvested and margins were on the decline. A key reason for this was our international
business, which was capital-hungry, spread across about 30 countries, and so stretched both
our balance sheet and Board and management attention.

Our businesses in Australia were contributing a good proportion of revenue, but close to nil
margins. They were reporting into three separate operating divisions, which served to mask their
underperformance across many operational dimensions.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
Meanwhile, Construction had assembled an order book that was overweight in higher risk, lower
margin projects which took up a disproportionate amount of Board and management time as
issues arose.

Of further concern was that our non-financial metrics were below par. While we had a safety
programme in place, an embedded safety culture did not exist. We had no carbon reduction
plans and we were not putting the right focus on our customers or our people.

What has the Board’s approach been?

In response to this situation, we took decisive action to firstly stabilise the Company:
• We appointed a new CEO, capable of handling the enormous task ahead.

• We completed a full Board refresh and implemented more rigorous governance protocols.

• We oversaw a capital raise, and moved to divest the International business with the
implementation of a new strategy focused on New Zealand and Australia.

In combination, the business was refocused and the balance sheet strengthened.

We successfully achieved much of this through 2018-2019 but we knew we had much more to
do beyond that. This included dealing with the legacy issues and repositioning the go forward
business, which I will speak on the following slides.

Clean up legacy issues – Construction projects

The legacy construction projects have been a major undertaking. We started with around 80
legacy projects. These had been brought into the Group when it had a different tolerance for risk
in winning construction work prior to 2017. There are now three projects left to complete, which
Ross will provide detail on.

The Board and management share the frustration of our shareholders that these legacy projects
have taken longer, and have cost more to complete, than planned. Ongoing COVID lockdowns
and the fire at NZICC added complexity to the tail legacy projects and have made it harder.

We accept that there are remaining risks to manage on these projects. These matters are a
major focus for the Board, with regular review of management progress in place.

At the same time, we have also had to focus on building a better construction business for the
future, rather than clearing up the past. We made the decision to exit the vertical Building sector.
Our teams have made excellent progress on lifting the skills, operating disciplines, and
governance across all the construction businesses. The best evidence of the success of this is
a rebuilt forward order book, with the right risk profile and margins.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
Reposition the go forward business for performance and growth

The final part of the Board’s strategy over the past five to six years was to reposition the go-
forward business to deliver improved performance and growth.

Combined with the issues in Construction, we had a challenged Australia business which was
dragging down our overall margin. We had a set of NZ assets with good market positions but
needing both investment and improved operating disciplines.

This slide shows the Group’s EBIT (excluding significant items) and margin performance over
time.

As we have taken the necessary actions, the operational gains we have made over the past six
years have been in a few key areas: cost efficiency, getting sharper on the products and
segments where we participate, and ensuring our pricing is both well-controlled and linked to
the value we deliver.

In addition, we have been focused on investing for the future. We are close to completing the
new $400 million Wallboards plant. This future proofs one of our most valuable assets. And we
have a mature programme of mainly organic growth projects underway.

Our strategic focus on the New Zealand and Australian geographies has enabled us to both
uncover and execute on these opportunities. Ross will touch on them more in a moment.

Reposition the go forward business for performance and growth

Our approach to non-financial performance has been, in many ways, similar to the financials. In
the areas of safety, sustainability, customer and engagement our approach has been to
understand what best-in-class performance looks like, and the operating disciplines needed to
achieve it. We then hold ourselves to account against these standards.

Pleasingly, progress on these over the past five years has been positive, in particular on safety
and sustainability. But we recognise that we now need to get more consistent and move closer
to “best in class” across our customer experience, and the capability and engagement of our
people.

Where are we now?

To summarise, the past six years have seen a significant turnaround of Fletcher Building.

The Company has been stabilised and we have pursued a consistent strategy focused on our
home markets in New Zealand and Australia.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
We have completed almost 80 legacy construction projects, and will be through the final three
by the end of next year. This does not take away from the Board’s disappointment at the
additional fire-related provisions on the Convention Centre booked in FY23.

Equally, we are cognisant of the risks that still exist as we complete the final legacy projects, and
we are highly focused on managing these, and on the resolving the Western Australia plumbing
issues, in a satisfactory way.

Overall, though, over the past six years the financial and non-financial metrics of Fletcher Building
have improved significantly. We believe the go-forward business is well-positioned for
performance and growth over the medium-term.

I would like to take the opportunity to thank our management team and all of our 15,000 people
for their considerable efforts over this period, and particularly over the past year. The Board is
very proud of the work that you have done, and continue to do, to improve Fletcher Building and
position it well for the long-term.

We also thank our shareholders for your continued support.

Ends

Authorised by:
Ashleigh Harding
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

---

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


Friday 27 October 2023

FLETCHER BUILDING LIMITED 2023
Annual Shareholders’ Meeting
Chief Executive Officer’s Address

FY23 - continuing operational improvements across the base business

The Fletcher Building base businesses are performing well. We are nicely positioned to navigate
the softer markets over the next year or so, and then to grow again from there.

As Bruce has covered the recent results in some detail, I will just make a few points on the 2023
financial year. Our overall EBIT margin (excluding significant items) increased to 9.4%, and
pleasingly the Australian division delivered 6% margins. Our progress in achieving a world class
safety culture and performance levels continues, and it is nice to see this being reflected in lower
injury rates across all our businesses.

We remain confident there is more financial performance upside in the medium term, but this
will be driven by getting our people fully engaged, genuinely passionate about what we do, and
really focused on our customers.

Against this backdrop it was pleasing to see improvements across both our customer and people
metrics through the year. A particular “call out” was the engagement score of our top 300 leaders
- this now sits at an industry leading eNPS score of 50. This sets us up well to achieve the further
overall performance improvements we are looking for into the future.

We are investing for growth

We continue to take a longer-term view and are actively investing in a significant number of
growth opportunities. As we have flagged previously, we have now committed around $800
million of capital to these opportunities.

We show on the slide a few examples of the investments we are making in New Zealand. These
are across the timber, insulation, automation in frame & truss and in the broader circular
economy.

We expect these investments to hit their full earnings run rate in the 2027 financial year, and to
deliver over $120 million per annum of extra profits to the bottom line from then on.

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

Pleasingly, we are on track to finish physical works on the final three construction legacy projects
through the 2024 calendar year.

The Puhoi to Warkworth motorway was opened in June this year. The final works will be
completed in the second quarter of 2024, and then it will be a matter of working through the major
claims on the project with Waka Kotahi.

We have now completed and handed over all the carpark levels on the Convention Centre. We
expect the hotel to be complete in December, and the balance of the project by the end of 2024.

As we noted in August 2023, there continues to be some cost risk to manage as we complete
these projects. We also need to secure claims and insurance recoveries, and manage any wash
up issues that may arise, to hold our current provisions. Resolution of the claims and recoveries,
particularly on the NZICC and Puhoi to Warkworth projects, is likely to take until FY25-FY26. On
Wellington Airport carparks, we are working with the Airport to determine an agreed
remediation, but any costs we decide to take in that regard are not covered by present
provisions.

Outlook on Western Australia plumbing issues

There are no material updates on the detailed presentation I gave on the Western Australian
plumbing issues two weeks ago. For those of you that did not see this and are interested in it,
the full presentation and webcast are available on the Fletcher Building website in the online
investor centre.
As Bruce outlined, we continue to use the A$15 million interim fund put in place earlier this year
to allow us to support the industry and homeowners while causation of the plumbing failures is
better understood. We also continue to work with the industry and regulators to develop an
effective solution.
Our evidence, which is a combination of extensive testing of the pipes and a comprehensive
review of leaks occurring in the home, points to installation as the failure.
Repair scenarios built on this evidence suggest an overall industry cost to repair these leaks of
between A$50 million to A$100 million.
At this stage we have not made any provisions to contribute to this repair bill.

FY24 trading update

Starting with our New Zealand Materials and Distribution businesses, I will now talk to the trading
conditions we are seeing so far this financial year.

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

The Infrastructure and Non-Residential sectors remain robust, but the Residential sector volumes
are around 5% softer than our prior guidance. This puts them down around 25% from the peak
we saw in late 2021. Our market shares are stable, and we are seeing solid pricing in our
materials businesses, but strong price competition in the merchant distribution channel. As such,
our profits for these businesses are tracking slightly behind our previous expectations.

In Australia, the division is trading well. We expect profits in the first half of this year to be broadly
in line with last year, despite a softer market.

Encouragingly, we are seeing “green shoots” in the residential house sale market in our
Residential and Development division. So far this year, house sales are tracking well (averaging
20-25 per week), and house prices have stabilised and are now starting to trend up slightly. If
this momentum in sales continues, there could be upside to our prior 700-800 unit sales target
for the financial year. We continue to expect profit margins to be slightly below 15% through the
year, and profits to be weighted to the second half due to the profile of settlements. This market
trend is a positive for our NZ Materials and Distributions businesses, as increased activity across
the residential end market will ultimately flow into the volumes across these businesses.

In Construction the work outlook in the market remains very solid, and our order book remains
strong. But a slower start to key projects will see our profits weighted to the second half of this
financial year.

FY24 underlying trading cash flows robust & balance sheet well positioned

The outlook for our trading cashflows continues to look robust, and our balance sheet remains
well positioned.

As previously guided, we expect leverage to move to the upper end of our 1 to 2 times range,
which still has material head room to our banking covenants. We have $2.8 billion of debt
facilities in place, and this ensures we will maintain healthy levels of liquidity through this year
and beyond. And we now have a Moody's credit rating in place at Baa2 (stable).

Fletcher Building is well positioned for the medium term

All these things leave us well positioned for the future:
• We are getting close to having the legacy construction projects in our rear-view mirror;
• We are well positioned to perform through the cycle, and then drive both further
performance improvements and upside volumes when the cycle turns;
• We are very advanced on our $800 million of committed growth projects, which we are
confident will be delivered well and set us up for significant extra earnings in the next 2
to 3 years; and
• There remain plenty of other growth opportunities, which we can take advantage of once
we have a firmer sense of when the cycle is returning to growth.

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

We have clear aspirations for our performance on non-financial measures

Our improvement aspirations extend beyond just the economics of the business, we also have
ambitious targets across our non-financial outcomes.

As we look forward:
• We are earnestly working towards being injury free as an organization;
• We want to continue to lead our sector in sustainability - by decarbonising ahead of the
competition, having the most sustainable products, and being heavily involved in the
circular economy;
• We want to provide products and services to our customers that are at global best in
class levels; and
• We want to have a diverse, talented and highly engaged workforce that just love being a
part of Fletcher Building.

We are well advanced across all of the key areas that will make Fletcher Building a great
company, and will provide exciting outcomes for Fletcher Building’s people, customers and
shareholders.

Tena koutou, Tena koutou, Tena koutou katoa.
Ends

Authorised by:
Ashleigh Harding
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

---

Fletcher Building Limited
Annual Shareholders’ Meeting 2023
2023 Annual
Shareholders’ Meeting
27 October 2023

Fletcher Building Limited
Annual Shareholders’ Meeting 2023
Bruce Hassall
Chair

Directors
Martin Brydon
Doug McKayCathy Quinn
Rob McDonald
Peter Crowley
Page 3| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
Bruce Hassall, Chair
Sandra Dodds
Barbara Chapman

Refreshments
Meeting agenda
Chair’saddress
Chief Executive Officer’s address
Voting on Resolutions
General Q&A
Page 4| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

FY23 key financial results
1. Measures before significant items are non-GAAP measures used by management to assess the performance of the business
and have been derived from Fletcher Building’s financial statements for the 12 months ended 30 June 2023. Details of
significant items can be found in note 2 of the financial statements
EBIT
1
$798m
FY22 $756m
EPS
30.0c
FY22 53.5c
EBIT
1
margin
9.4%
FY22: 8.9%
Dividend
34.0cps
FY22: 40.0cps
Cash flows from
operating activities
$388m
FY22 $592m
Return on funds employed
1
17.1%
FY22: 19.3%
Revenue
$8,469m
FY22 $8,498m
Net Earnings
$235m
FY22 $432m
Page 5| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

FY23 key non-financial results
TRIFR
1
3.1
FY22 3.4
CO
2
reduction
2
since 2018
16%
FY22: 12%
Employee Engagement eNPS
26
FY22: 23
Customer NPS
3
40
FY22: 36
Page 6| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
1. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries. Excludes Rocla, Tumu & Waipapa
2. Carbon Emissions are ‘000 Tonnes Combined Scope 1 and Scope 2 emissions for Group; Carbon Emissions Intensity = FBU CO
2
Tonnes for every
$1m of revenue. ISO 14064-1
3. Net Promoter Score (NPS) measures how satisfied our customers are with our business (excludes the Group JVs and associates)

WA plumbing
Page 7| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
❶
SUPPORT
CUSTOMERS &
HOMEOWNERS
❷
ESTABLISHING
CAUSATION
❸
INDUSTRY
SOLUTION
BOARD COMMITTEE IN PLACE TO GOVERN WA PLUMBING

Where did we start from in 2018?
2018 Position –Financial & Operational
NZ underlying business: reasonable margins but
in decline, renewed focus & investment required
2018 Position –Non-Financial
Safety
Safetyculture
lacking
CO
2
No reduction
plans
Employee Engagement
eNPS
24
Customer NPS
1
33
International: multiple geographies, capital
hungry, exit required
Australia: low and falling margins, declining
competitivity, extensive turnaround required
Page 8| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
Construction: c.80 loss-making projects, putting
FCC in loss. Total business reset required
1. Net Promoter Score (NPS) measures how satisfied our customers are with our business (excludes the Group JVs and associates)

What has the Board’s approach been?
Page 9| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
Clean up legacy issues
2
Reposition the go-forward business for performance and growth
3
Stabilise the Company, sold International, focus on NZ & AU
1

Clean up legacy issues –Construction projects
Where we started
FCC & legacy projects have been a major undertaking
Legacy projects
▪c.80 projects, mainly in vertical Buildings business
▪Including 8 highly complex projects >$250m each
FCC business
▪Highly exposed to riskier, lower-margin, fixed-priced projects
▪Systems and skills less well-suited
▪Bid approach, risk framework not sustainable
▪Low morale
Page 10| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
We are almost done
Projects to complete (#)
c.80
40
15
11
7
5
3
2
0
Feb'18Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23Jun'24Jun'25
▪Physical works on remaining 3 projects complete end of CY24
▪Need to secure P2W claims & NZICC insurance recoveries
▪Board highly focused on remaining risks, incl. potential claims

Reposition the go forward business for performance and growth
Group EBIT($m) and EBIT Margin (%)
20
598
160
668
756
798
0.2%
7.2%
2.2%
8.2%
8.9%
9.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-
100
200
300
400
500
600
700
800
900
1,000
FY18FY19FY20FY21FY22FY23
Note: EBIT and EBIT Margin exclude significant items; FY18 and FY19 are proforma numbers adjusted for discontinued operationsand IFRS16;
FY20 was significantly impacted by COVID lockdowns
(Covid-19)
Page 11| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

Reposition the go forward business for performance and growth
Safety
Serious Injuries and TRIFR
1
19
3
5.1
3.1
0
5
10
15
20
25
0
1
2
3
4
5
6
FY18FY23
Sustainability
1,213
1,021
153
121
-10
10
30
50
70
90
110
130
150
170
190
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY18FY23
Carbon (CO
2
) Emissions&
Intensity
2
1. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries. Excludes Rocla, Tumu & Waipapa
2. Carbon Emissions are ‘000 Tonnes Combined Scope 1 and Scope 2 emissions for Group; Carbon Emissions Intensity = FBU CO
2
Tonnes for every
$1m of revenue. ISO 14064-1; FY18 baseline has been adjusted to account for the divestment of Rocla and the acquisition of Tumu
3. Net Promoter Score (NPS) measures how satisfied our customers are with our business (excludes the Group JVs and associates)
Customer
Engagement
Net Promoter Score
3
Employee Engagement Rating
(eNPS)
33
40
FY18FY23
24
26
FY18FY23
Page 12| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

Where are we now?
3 legacy construction projects to complete, strong focus on resolving WA plumbing –
governance of these risks are a priority for the Board
2
Significant operational gains, well-positioned for medium-term performance & growth
3
Stable foundation, consistent strategy
1
Page 13| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

Fletcher Building Limited
Annual Shareholders’ Meeting 2023
Ross Taylor
Chief Executive Officer

FY23 -continuing operational improvements across the base business
FY23 -Operating highlights
EBIT
1
margin increased to 9.4%: NZ businesses
strong; Australia now at 6% margins
All key metrics improved
Safety: Culture transformation well advanced &
showing up in significantly lower injury numbers
Customer NPS
2
40: Service improvements, online
offering & innovation recognised by customers
Page 15| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
Employees more engaged: Engagement across
top 300 leaders at an industry leading eNPSof 50
EBIT
1
margin
9.4%
FY22: 8.9%
TRIFR
3
3.1
FY22: 3.4
Customer NPS
2
40
FY22: 36
Employee Engagement
26
FY22: 23
1. Before significant items
2. Net Promoter Score (NPS) measures how satisfied our customers are with our business (excludes the Group JVs and associates)
3. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries. Excludes Rocla, Tumu & Waipapa

We are investing for growth -having made $800m+ of commitments
which sets us up for $120m+ of profit growth from FY27
Laminex Taupō
Waipapa Timber
Comfortech
Page 16| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
CLINKER SUBSTITUTIONCONSTRUCTION & DEMOLITION WASTEALTERNATIVE FUELS
Frame & TrussCircular economy

Outlook on Construction legacy
▪Opened in June 2023, some final works to be
completed in FY24
▪Project has lodged a number of claims
(>$200m, of which FB share is 50%). Successful
resolution of these claims needed to hold
current project provision –cash receipts
assumed to flow in FY25
International Convention Centre (NZICC)
Pūhoito Warkworthmotorway (P2W)
Wellington International Airport
▪Carparks complete, hotel & ICC steel remediation
complete by Dec 2023, overall project complete
in late 2024
▪Cost risk remains until project completion
▪Securing insurance recoveries likely to require
court based legal proceedings through FY25-26.
May present net revenue upside, however timing
disconnected from cost recognition
▪Risk of “wash up” claims from SkyCity
▪Working with Airport to agree a
remediation solution to quality issues
and settlement of counter claims
Page 17| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

Outlook on WA plumbing issues
Our approach remains:
➔Our evidence points to installation failures as the reason leaks are occurring
➔Our testing on the product is well advanced. Our tests to date continue to show that our Pro-fit product is not defective
➔Looking to work with WA regulators and industry to develop an industry solution which is proportionate to the problem and
evidence based
➔Good working relationship with all WA builders/plumbers except BGC who have chosen not to work with Iplex or industry
➔Scenarios built on our evidence to date suggest industry cost to repair affected Perth houses could be c.A$50m -$100m over
several years
SUPPORT
CUSTOMERS &
HOMEOWNERS
SEEK EVIDENCE-
BASED CONSENSUS
AROUND CAUSATION
12
A$15m
INTERIM FUND IN
PLACE FOR FY24
HELP INDUSTRY
DEVELOP A SOLUTION
3
Page 18| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

FY24 trading update
▪Infra. & Comm. sectors remain robust; Resisector volumes c.5% softer than prior guidance
▪Market share stable, solid pricing being achieved in the materials businesses but strong price
competition in the merchant distribution channel
▪EBIT
1
tracking slightly behind expectations on softer Resi. sector & price pressure in Distribution
Page 19| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
1. Before significant items
AUSTRALIA
NZ MATERIALS &
DISTRIBUTION
RESIDENTIAL &
DEVELOPMENT
CONSTRUCTION
▪Business trading well
▪Expect 1H24 EBIT
1
broadly in line with 1H23 despite lower market
▪House sales tracking well, averaging 20-25 per week YTD
▪House prices have stabilised, starting to trend up slightly
▪Potential upside to 700-800 unit sales target in FY24 if sales momentum continues
▪Continue to expect EBIT
1
margins slightly below 15% in FY24; EBIT
1
weighted to 2H24 due to
profile of settlements
▪Solid order book, some slippage in ramp-up of civil projects
▪EBIT
1
weighted to 2H24 due to normal seasonality

FY24 underlying trading cash flows robust & balance sheet well positioned
▪Expect robust trading cash flows in FY24(excl. legacy) as working capital managed tightly
▪Leverage (net debt / EBITDA) to move to upper end of 1x-2x rangedue to FCC legacy cash flows and growth capex investments
▪Committed to remaining within our 1x-2x target leverage range; provides significant headroom under banking agreements
▪Moody’s credit rating in place at Baa2 (stable),good alignment with FB capital structure settings
▪Strong debt facilities of $2.8bn in place, expect to retain healthy liquidity despite higher debt levels in FY24
▪Credit rating supports issuance into local bond markets when conditions are supportive
Page 20| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
1. Before significant items
FY24 Key Cash Flow Components
▪Cash flow usual 2H seasonal weighting, however expect materially improved HY24 vs HY23 (excl. legacy impact)
▪Legacy cash flow: c.$375m in FY24, subject to risk on cost & timing of insurance recoveries; outflow weighted to 1H24 (c.$275m)
▪Funding costs: $140m-$150m (excludes ROU leases interest)
▪Capex: base capex $200m-$250m; growth capex c.$250m; final WWB plant capex c.$30m

FY24FY25FY26FY27FY28
Fletcher Building is well positioned for the medium term
Margins
Growth
Macro
Residential headwindsMarket tailwinds
Preserve
operational gains
Further operating margin improvements / + any cycle upside
$800m+ in committed growth capex @ 15% ROFE
$120m+ EBIT from FY27
Significant further organic opportunities available
Page 21| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
Legacy -Physical
Work Completed

We have clear aspirations for our performance on non-financial measures
Safety
Zero serious
injuries
CO
2
reduction
30%by FY30
2
Net Zero carbon
by FY50
Employee Engagement eNPS
≥40
Customer NPS
1
≥55
30%
women in leadership
3
by
FY27
Online Sales
c.$1.5b
In FY25
100%
sites injury free
70%
waste diverted from
landfill by FY26
75%
revenue from sustainably
certified products by FY26
Page 22| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023
1. Net Promoter Score (NPS) measures how satisfied our customers are with our business (excludes the Group JVs and associates)
2. From FY18 baseline. Carbon Emissions are ‘000 Tonnes Combined Scope 1 and Scope 2 emissions for Group
3. Leadership includes all employees that are classified as frontline leaders, leaders of leaders, GMs & CEs

Fletcher Building Limited
Annual Shareholders’ Meeting 2023
Resolutions and Voting

Resolutions
➔Ordinary Resolutions
➔Resolution 1 –Re-election of Bruce Hassall
➔Resolution 2 –Re-election of Barbara Chapman
➔Resolution 3 –Re-election of Martin Brydon
➔Resolution 4 –Election of Sandra Dodds
➔Resolution 5 –Auditor fees and expenses
➔Resolution 6 –Director’s remuneration (pool) -Withdrawn
Page 24| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023

Fletcher Building Limited
Annual Shareholders’ Meeting 2023
2023 Annual
Shareholders’ Meeting
27 October 2023

Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothis
documentandtheverbalorwrittencommentsofanypersonpresentingit.
Thispresentationdated27October2023shouldbereadinconjunctionwith,andsubjectto,theexplanationsandviewsoffutureoutlookonmarketconditions,earningsand
activitiesgiveninthe2023AnnualReport(togetherwithmanagementcommentary)publishedon16August2023.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems.Anumberofnon-GAAP
financialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancial
statementsforthe12monthsended30June2023.Youshouldnotconsideranyofthesestatementsinisolationfrom,orasasubstitutefortheinformationprovidedinthe
FinancialStatementsforthe12monthsended30June2023,whichareavailableatwww.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,
shareholders,noranyotherpersongivesanyrepresentationsorwarranties(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 26| Fletcher Building Limited Annual Shareholders Meeting 2023| © October 2023