Presentation for update on NZICC and WIAL Carpark projects

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



Presentation for update on NZICC and WIAL Carpark projects

Auckland, 5 February 2024: Fletcher Building earlier today announced an update on the New
Zealand International Convention Centre and Hobson Street Hotel project (“NZICC”) and the
Wellington International Airport Carpark project (“WIAL Carpark”).

A short presentation is attached relating to today’s briefing.

Conference call to be held today

Fletcher Building management will host a Q&A briefing for investors and analysts today at
12:00pm NZDT / 10:00am AEDT to discuss today’s announcement. Participants can register for
the conference by navigating to the following link:

https://s1.c-conf.com/diamondpass/10036826-yu785e.html

Upon registration you will be provided with the dial in number, passcode, and your unique access
PIN. To join the conference simply dial the number and enter the passcode followed by your PIN,
and you will join the conference instantly.

A replay facility will be available after the conference call.

#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

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Fletcher Building Limited
Update on
NZICC and WIAL
Carpark Projects
5 February 2024

NZICC Update
Project remains on track for completion by end of calendar 2024, significant milestones delivered
▪NZICC remains on track for final completion by end of calendar 2024
▪Milestones to date:
▪Carparks complete
▪Steel remediation 98% complete
▪Hobson Street Hotel in final commissioning phase, hand over in Feb-24
NZICC -South FacadeNZICC –Operable Wall InstallAirbridge connecting Horizon Hotel & NZICC
NZICC Theatre SeatingUnderground Entrance to Horizon Hotel
Page 2| Fletcher Building Limited Update on NZICC and WIAL Carpark Projects | © February 2024

NZICC Update
Fire remediation works close to complete -majority of remaining scope back to completing original contract works
Basement Car Parks
Works Completed
Hotel completion
February 2024
NZICC completion
Late Calendar 2024
B4
L6
L5
L4M
L3
L2
L1
B1
B2
B3
Page 3| Fletcher Building Limited Update on NZICC and WIAL Carpark Projects | © February 2024

NZICC Update
Additional provision announced today of $165m is mainly from higher costs of steel remediation, and the updated
forecasts to complete the interior fit-out & operating systems install from the original contract scope
▪Additional NZICC provision mainly due to higher actual and forecast costs to complete the project
▪Largest single cost increase from steel remediation: work now broadly complete, but productivity
has been lower than forecast –greater resources required for a longer period
▪Encapsulation, stripping/blasting, repainting 3 coats on all NZICC primary and secondary steel
▪Up to 500 people, plus encapsulation and access equipment, burn rate c$750k / day
▪Other cost increases from refining scope and procuring subcontractor resource to complete
remaining parts of project: esp. internal fit-out and installation of operating systems
▪c. 5000 drawings, c. 200 subcontractor packages on remaining scope
▪Some original suppliers insolvent or no longer available (e.g. operable doors, theatre/AV),
work packages re-tendered
▪Limited capacity in commercial trades, pressure on rates
▪Some challenges in securing remaining Contract Works Insurance (CWI) revenue, smaller portion
of latest provision due to risk of non-recovery of these revenues
▪Cost and revenue risk remains through to completion of project
▪Consistent with prior position, no Third Party Liability (TPL) revenue is included in the project
forecast. FBU is pursuing TPL claims of >$100m, likely to take significant period to resolve (FY25+)
NZICC -L5 Stage Wall Blackout
Horizon Hotel Corridor
Page 4| Fletcher Building Limited Update on NZICC and WIAL Carpark Projects | © February 2024

NZICC Update
Cash flow impact of additional provision is expected to be spread across 2H24 and 1H25
▪Previous expectation was for a cash outflow on NZICC of c. $300m in FY24, ahead of a small positive cash inflow in FY25
▪Based on the latest provision, the cash outflow in FY24 is now expected to be c. $370m, followed by a cash outflow in FY25 ofc.$80m
▪Cash flow phasing remains subject to risk on timing of claim recoveries and project costs
▪No Third Party Liability (TPL) revenue is included in the cash flow forecasts
▪All cash flows shown are pre-tax
NZICC cash-flowFY24 TotalFY25
Prior Forecastc.$300m outflowc.$15m inflow
Latest Forecastc.$370m outflowc.$80m outflow
Page 5| Fletcher Building Limited Update on NZICC and WIAL Carpark Projects | © February 2024

Wellington Airport Carpark Update
Provision of $15m for estimated costs to remediate quality issues
▪Fletcher Construction (FCC) has been discussing technical solutions
with Wellington International Airport Limited (WIAL) to remediate
quality issues on the airport carpark
▪While the solution has not yet been agreed with WIAL, FCC considers
that it now has an effective solution and a robust estimate of the cost
to undertake the remediation. The $15m provision reflects these
expected remediation costs
▪Cash-flow impact of the provision is expected to be through calendar
2024
▪Additional claims exist in both directions between FCC and WIAL.
Upside and downside risk exists on settlement of these claims
Page 6| Fletcher Building Limited Update on NZICC and WIAL Carpark Projects | © February 2024

Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothis
documentandtheverbalorwrittencommentsofanypersonpresentingit.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,
shareholdersnoranyotherpersongivesanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessoftheinformationandtothemaximum
extentpermittedbylaw,nosuchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arising
fromthispresentationoranyinformationsuppliedinconnectionwithit.
ThispresentationcontainsnotonlyinformationaboutactionstakenbyFletcherBuildinganditsoperations,butalsosomeforwardlookingstatements,thatisstatementsrelatedto
future,notpast,intentions,eventsorothermatters.Forwardlookingstatementsmayincludestatementsregardingourintent,belieforcurrentexpectationsinconnectionwiththe
informationavailabletoFletcherBuilding.Suchforwardlookingstatementsarebasedoncurrentexpectations,estimatesandassumptionsandaresubjecttoanumberofrisksand
uncertainties,includingmaterialadverseevents,significantone-offexpensesandunforeseeablecircumstances.Actualfiguresorestimatesmaydiffermateriallyfromthose
projected.Exceptasrequiredbylaw,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonisunderanyobligationtoupdatethispresentationatanytimeafter
itsreleaseortoprovidefurtherinformationaboutFletcherBuilding.
Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceorarecommendation.
Page 7| Fletcher Building Limited Update on NZICC and WIAL Carpark Projects | © February 2024