Fletcher Building Provides Golden Bay Shipping Update

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
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Fletcher Building Provides Golden Bay Shipping Update

Auckland, 29 July 2024: Fletcher Building’s Golden Bay cement business is currently
experiencing operational issues with the Marine Vessel Aotearoa Chief (MVAC) which
is owned and operated by a third-party provider. The ship transports cement around
the North Island from Golden Bay’s Portland manufacturing facility.

Due to a mechanical issue, the vessel is currently docked at Northport while inspections
and repairs are made by the owner. The timeframe required to make the necessary
repairs, and source replacement parts, is not known at this time.

Our key priority is maintaining the supply chain and this is being actively worked
through in order to minimise any potential disruption to North Island customers while
the MVAC is being repaired. Golden Bay has made significant investments over the
past several years which puts the company in a position to offer contingencies in the
event of disruption to its distribution network.

Golden Bay is engaging with its customers and has enacted its contingency plans,
which include the immediate use of alternative transport options to distribute cement.
These options include the use of its existing coastal barge and the greater use of road
and rail options.

The company is also investigating longer term solutions, which include potentially
sourcing the use of alternative cement supplies from domestic and offshore suppliers
along with securing the use of a replacement ship if required.

Fletcher Building’s preliminary assessment is that it expects the impact on FY25
earnings due to the disruption to be in the range of $10 million to $30 million, driven by
the anticipated increased costs of supply from the range of mitigating actions expected
to be adopted by it. However, the actual impact will depend on a number of variables
that are not yet known, including the duration of the issue, the mitigation actions
available, the third-party costs associated with those mitigating actions and the impact
on operations.

The company will update the market as more information becomes available on the
status of the MVAC.

#Ends

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
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Authorised by:
Haydn Wong
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