Fletcher Building Industry Response to WA Plumbing Issues

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

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Fletcher Building Announces Industry Response to WA Plumbing Issues

Auckland, 30 August 2024: Fletcher Building Limited (the “Company”) today
announced that its subsidiary Iplex Pipelines Australia (“Iplex AU”), together with the
Western Australian Government and key industry stakeholders, have reached an in-
principle agreement to address plumbing failures occurring in some WA homes
constructed with Typlex Pro-Fit pipe (the “plumbing failures” and “Joint Industry
Response” or “JIR”).

On the assumption that the JIR is finalised, the Company expects to record a pre-tax
provision of ~A$155 million in its FY25 financial statements – see further discussion
below.

Joint Industry Response
Key elements of the proposed Joint Industry Response, which remains subject to final
documentation by the parties, are as follows:

• The Joint Industry Response is available to all WA homes in which Pro-Fit pipe
manufactured with Typlex resin was installed, irrespective of whether that home
is owned by the original purchaser or not.

• Once agreed, the builders of those homes, if they participate in the JIR
(“Participating Builders”), will be the point of contact with their homeowners and
have agreed to attend and fix every plumbing failure and repair any damage to
that home resulting from it. They have also agreed to undertake an additional
programme of work, including replacing ceiling pipes, in those homes that
experience a plumbing failure and – for homes with extensive failures – either a
zone or a full home re-pipe. Temporary accommodation will be provided for
homeowners for whom a full home re-pipe is carried out.

• This work programme has been designed by the industry and the WA
Government to provide the most pragmatic solution for affected homeowners,
providing priority to the homes most affected while recognising the capacity
constraints on the industry.

• Together, Iplex AU and the WA Government have committed to cover the direct
costs of Participating Builders incurred in providing the work programme under
the JIR: 80% by Iplex AU and 20% by the WA Government. Participating Builders
will pay their own administrative costs of the JIR.

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

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• The JIR recognises that a product recall is not an appropriate response to the
plumbing failures.

• The JIR has no time limit and homeowners will be entitled to access its benefits
through their Participating Builder if and as needed. Homeowners and their
insurers will have no need to go elsewhere nor be required to fund their own
repairs.

• The builders who built almost all of the affected homes participated in the
mediated discussions for the JIR. All of those builders, other than BGC (which
built approximately 50-60% of the affected homes), have agreed to join the JIR.

• Any other builder of an affected WA home (including BGC) will be offered the
opportunity to participate in the JIR, on the same terms as the other Participating
Builders.

• In addition, and as an important precautionary initiative, Iplex AU will offer all
relevant WA homeowners, including those whose builders have not agreed to
participate in the JIR, the supply and installation of a leak detector unit, free of
charge. These units provide early alerts and reduce impact in the event of a
plumbing failure.

• The WA Government has announced it will change the law, extending the time
for affected homeowners to lodge complaints relating to the Typlex Pro-Fit pipe
plumbing failures only with its Building Commissioner from 6 years post
completion to 15 years post completion. This extension will also apply to homes
that are already more than six years old. To accompany that law change and
to support the JIR, the WA Government will also introduce a formal policy that
ensures building remedy orders made by the Building Commissioner and the
State Administrative Tribunal are consistent with the terms of the JIR. These
changes also assure homeowners that, whether their builder participates in the
JIR or not, their complaints will be dealt with consistently. If a builder is not part
of the JIR, they will still be required to take the actions ordered, but will not be
eligible for funding of their direct costs from Iplex AU or the WA Government.

• Iplex AU’s offer of funding Participating Builders’ direct costs at the rate of 80%
is not capped. The WA Government’s 20% contribution is capped at A$30
million (but there is the opportunity for parties to confer with the Government if
its funding reaches A$26 million).

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

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• The JIR is entered into by the parties on a no liability, no admissions basis. Iplex
AU is committed to the JIR because it is the most timely and pragmatic solution
for homeowners and a more appropriate path than a product recall. Iplex AU
recognises the importance of playing its part to help deliver this response.

• Iplex AU will appoint an experienced loss assessor to manage the claims for
repair costs under the JIR, providing all parties (including the WA Government)
with a system to confidently monitor activity and verify costs.

All participants in the JIR have agreed to a “no sue” provision, meaning they will not
bring actions against each other in relation to the plumbing failures. Each party is,
however, not restricted from acting in its own interest in defending or responding to any
claim brought by a person who is not party to the JIR (and the WA Government has
reserved its rights in relation to future actions if based on information obtained by it after
the date of the JIR).

If a third-party claim is a homeowner class action, the JIR will terminate as to those
homes or their owners who are members of the relevant class at the conclusion of that
action. The JIR will continue for any eligible home whose owners did not participate in
the class action, but the terms of the JIR will be renegotiated by the parties at that time
in light of the facts then prevailing.

The JIR (both work programme and funding rates) may also be renegotiated if a
different outcome results from any other type of future third party lawsuit. However, that
change would only apply to amounts or activities required from that point forward. All
amounts spent in performing the JIR to that point, either by Iplex AU or other parties,
cannot be reclaimed retrospectively.

The JIR does not require Iplex AU to fund claims brought against builders by
homeowners for costs incurred by the homeowners or their insurers outside the JIR
(except in limited circumstances).

Current litigation
As previously notified, a class action has been served on Iplex AU on behalf of all
homeowners, Australia-wide, alleging that the Pro-Fit product was not of acceptable
quality at the time of supply and seeking a broad range of damages. (See Note 26 in
the Company’s FY24 financial statements for more information about that claim).

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

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In addition, BGC has filed a claim against Iplex AU making similar claims regarding the
pipe not being of acceptable quality or fit for purpose and seeking a wide range of
damages, including for rectification work done to date.

While this matter is on foot, BGC is not eligible to join the JIR. Iplex AU would welcome
BGC into the JIR on the same terms as all Participating Builders for the benefit of its
homeowners. At BGC’s request, Iplex AU has said it will participate in ongoing
discussions about BGC joining the JIR in the future. The outcome of those discussions
is not certain at this time.

Iplex AU intends to defend the existing legal proceedings.

Additional claims may be brought. For example, it is possible that further litigation may
be brought on behalf of homeowners, insurers or other builders who are not
participating in the JIR. The terms of the JIR do not require a homeowner to release or
waive any rights they may have against any participant in the JIR.

Despite reaching an in-principle agreement on the JIR, legal and financial risks remain
for Iplex AU and Fletcher Building. If a current or future matter was successfully brought
against Iplex AU, it may have a material adverse impact to the Group.

More details of the JIR, including practical details about the leak detector roll out and
timing, will be announced when the JIR legal agreements are finalised. The parties are
targeting for that to occur over the next month, enabling work and funding under the
JIR to commence shortly thereafter.

Iplex Interim Fund extended
To support builders who are registered with it and their homeowners, Iplex AU has
extended the operation of its Interim Fund on current terms to the end of September
2024. This will enable continuity of funding whilst the formal documentation is finalised.

Provision details
On the assumption that the JIR is finalised, the Company expects to record a pre-tax
provision of ~A$155 million in its FY25 financial statements. The provision will cover:
• Iplex AU’s share of costs to repair affected WA homes: ~A$120 million
• Iplex AU’s costs of installing leak detectors to all relevant WA homes: ~A$20
million
• Iplex AU’s associated administration costs over the life of the JIR: ~A$15 million
This provision will be recorded as a Significant Item.

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

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The provision has been based on the following assumptions:
• That ~35% of relevant WA homes will experience one or more leaks over time.
This allows a buffer above Iplex AU’s estimate of leak rates, extrapolated from
leak data Iplex AU has collected over the last 12-15 months. This percentage is
based on an estimate that 15,000 WA homes may have had ProFit pipe installed
with Typlex resin. To the extent that denominator is updated, the percentage
reference rate correspondingly changes.
• That all WA homes that experience a plumbing failure, including those built by
BGC, may apply for funding under the JIR. Although BGC is not currently a party
to the JIR, Iplex AU’s offer to fund Participating Builders would extend to BGC if
it joins the JIR, hence the provision has been sized to include it. If BGC stays out
of the JIR, the repair costs funded by Iplex AU are expected to be proportionately
lower.
• That the contribution from the WA Government will be its capped amount of
A$30 million. It is noted that if A$26 million of the WA Government’s committed
A$30 million is disbursed, then the JIR requires that the WA Government and
other parties meet and consider whether the JIR remains effective and
continues to meet its objectives.

The provision is subject to the final documentation of the JIR and to further assessment
as part of the Company’s accounting processes.

The pre-tax cash flows associated with the Iplex AU’s participation in the JIR are
expected to be expended over at least five years. The annual cash flows will be subject
to the actual rate of leaks and the type of repairs undertaken. They are expected to be
front-loaded due to the initial programme set-up costs, the need to re-pipe homes that
have already been more extensively affected and installing leak detectors.

If the provisioned amount is spent over the next 5 years, the Company’s cash flows in
year one of the JIR could be in the order of A$40 million to A$50 million, and in
subsequent years in the order of A$15 million to A$35 million. If BGC remains not a party
to the JIR, these cash flows are expected to be proportionately lower.

If BGC remains outside the JIR, the cash flows for the leak detector roll out are not
expected to change, as all homeowners will be offered units, including those whose
builders are not participating in the JIR.

Acting Fletcher Building CEO Nick Traber said: “We acknowledge the efforts of Minister
Ellery and the WA Government in facilitating a mediated outcome for the benefit of WA

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

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homeowners. We welcome this in-principle agreement with the WA Government and
the many builders involved to address the WA plumbing failures. We further
acknowledge the WA Government’s recognition that a product recall is not an
appropriate response given the circumstances involved.

“As we have said for some time, it is in all parties’ interests, as a first priority, to stand up
a comprehensive response which remediates the plumbing issues in a timely and
pragmatic way.

Our work to date has shown that a rapid response to initial leaks, installing leak
detectors and replacing ceiling pipes in homes that have suffered a plumbing failure is
the most effective and homeowner-friendly way to mitigate future issues. We therefore
see the Joint Industry Response as a sensible and practical outcome for all parties.”

Conference call to be held today
Fletcher Building management will host a presentation and Q&A briefing today, 30
August 2024 at 2:00pm NZST / 12:00pm AEST to discuss today’s announcement.
Participants can register for the conference by navigating to the following link:

https://s1.c-conf.com/diamondpass/10039956-88qfrd.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.

#ENDS

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

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30 August 2024
Western Australia
Plumbing Issues Update
Joint Industry Response

➔A Joint Industry Response to the WA plumbing failures has been agreed in principle by the Western Australia Government, IplexPipelines Australia
(“Iplex AU”) and almost all builders of WA homes built with the Typlex Pro-Fit pipe who were in mediation. This Joint Industry Response (“JIR”)
provides support for homeowners in a timely and pragmatic way:
➔Iplex AU and the WA Government have committed to cover direct costs of repairs by participating builders to WA homes affectedbythe
plumbing failures: 80% by Iplex AU and 20% by the WA Government. Iplex AU estimates its share of repair costs will be up to ~A$120m, the WA
Government’s contribution is capped at A$30m, at the rate of 20%.
➔The agreed work programme under the JIR is a range of measures based on the type and extent of plumbing failures. These willinclude pipe
and damage repairs, ceiling pipe replacements, and –for WA homes with extensive failures –either a zone or a full house re-pipe. Temporary
accommodation will be offered for full home re-pipes.
➔Iplex AU will also offer all homeowners, free of charge, the installation of a leak detector unit, providing early alerts andreducing impact in the
event of a plumbing failure.
➔Participating Builders will maintain the relationships with their homeowners, complete the repair and other agreed work and cover their own
administrative costs in doing so. The JIR has no time limit and is available to both current and future owners of WA homes built by Participating
Builders.
➔BGC has not joined the JIR at this time. It will be eligible to join the JIR if it is willing to do so on the same terms as the rest of the industry. BGC’s
share of the relevant homes is estimated to be in the order of 50-60%.
➔The WA Government has agreed that the JIR is the appropriate response to address the WA plumbing failuresand its actions mean that a recall order
of the Typlex Pro-Fit pipe is not required.
Summary
A Joint Industry Response to the Perth plumbing failures has been agreed in-principle
Page 2 | Fletcher Building Limited | © August 2024

➔Iplex AU has committed to the JIR because it is in all parties’ interests for there to be a pragmatic and homeowner-friendly mitigation of future
issues. The JIR also means the Government has chosen a practical path forward, as Iplex has advocated, not a product recall.
➔Our estimate of repair costs is based on leak and cost data collected over the last 15 months working with the Perth industry to repair >900 homes.
➔Our statistical analysis of trend data forecasts that not all WA homes fitted with Typlex Pro-Fit will experience one or more leaks over time. Our
provision for repair costs allows for a leak rate of ~35% which is higher than current or expected trends and assumes 15,000
1
homes were built in
WA with Typlex resin ProFit). The provision also assumes a higher average repair cost than previously, due to allowance for a greater mix of more
expensive repairs (e.g. zone / house re-pipes). The provision also allows for costs of repairs to BGC homes – even though BGC has elected not to
participate in the JIR. The offer to BGC to participate on the same terms supports the provision being extended to their homes. However, if BGC
remains outside the JIR, cash disbursed to fund repair costs will be proportionally lower.
➔The JIR remains subject to final documentation. Assuming it is formalised, Fletcher Building expects to make a provision of ~A$155 million in its FY25
accounts: ~A$120m for Iplex AU’s share of estimated industry repair costs; ~A$20m for leak detectors; and ~A$15m for overhead costs over a 5 year
life of the JIR. These costs will be recorded as a Significant Item.
➔Cash flows are expected to be phased over ~5 years: ~A$40m-$50m in year 1 and ~A$15m-$35m p.a. in subsequent years. These cash flows assume
BGC joins the JIR; if it does not, cash outflows are expected to be proportionally lower. All cash flows are pre-tax.
Summary (cont.)
A Joint Industry Response to the Perth plumbing failures has been agreed in-principle
Note: Leak rates based on assumption of total of 15,000 WA homes fitted with Typlex Pro-Fit pipe
1. This 15,000 denominator is an estimate and may be high
Page 3 | Fletcher Building Limited | © August 2024

➔The JIR is entered into by the parties on a no liability, no admissions basis. All participants have agreed to a “no sue” provision as to part of the
agreement.
➔Each party is not restricted from acting in its own interest in defending or responding to a claim brought by a person who is not party to the JIR.
➔The JIR (both work programme and funding rates) will either terminate or be renegotiated if a different outcome results from a third party lawsuit.
➔If the third party action is a homeowner class action, the JIR will terminate for homes and their owners included in that class action when it
ends but may continue for homes not in the class.
➔If the third party action involves a builder (alone or with homeowners), the JIR may change to the extent it needs to stay on foot after that
matter has been determined, but that change will only apply to amounts or activity required from that point forward.
➔All amounts spent in performing the JIR to that point, either by Iplex AU or other parties, cannot be reclaimed retrospectively, even if a court
case would have allowed that to occur.
Summary (cont.)
A Joint Industry Response to the Perth plumbing failures has been agreed in-principle
Page 4 | Fletcher Building Limited | © August 2024

Current Litigation
➔As previously notified, a class action has been served on Iplex AU on behalf of all homeowners, Australia wide, alleging that the Pro-Fit product was
not of acceptable quality at the time of supply and seeking a wide range of damages (some of which are not addressed by the terms of the JIR).
(see Note 26 in the Company’s FY 24 financial statements for more information about that claim).
➔In addition, BGC has filed a claim against Iplex AU making similar claims regarding the pipe not being “of acceptable quality” or “fit for purpose”. The
losses claimed are largely addressed by the terms of the JIR, other than BGC’s administrative and legal costs or rectification work done by BGC to
date.
➔Iplex AU intends to defend those matters.
➔While the BGC claim is on foot, BGC will not be entitled to join the JIR. At BGC’s request, discussions to enable them to join the JIR on the same
terms as the industry for the benefit of its homeowners are ongoing.
➔Additional or competing claims may be brought. The terms of the JIR do not require a homeowner to release or waive any rights they may have
against any participant in the JIR.
➔If a current or future matter were to be successfully brought against Iplex AU, it may have a material adverse impact to the Group.
Summary (cont.)
A Joint Industry Response to the Perth plumbing failures has been agreed in-principle
Page 5 | Fletcher Building Limited | © August 2024

Background
The plumbing failures continue to be concentrated in Perth
➔Pro-Fit with Typlex resin was first produced by Iplex AU in mid-2017
and was the bulk of the supply across Australia from then onwards
➔Similar volumes of Pro-Fit were sold in Perth and the Rest of AU from
2017-2022 (manufacture of the product ceased in 2021) out of the
same factory
➔Pro-Fit with Typlex resin was only manufactured and sold in Australia,
not in New Zealand
➔Iplex is reliant on builders to provide it with the information and data
referred to in this pack e.g. Home and leak numbers. Actual data may
differ or be delayed, but Iplex does not expect any of those
differences to be material
➔To date, leaks have been reported to Iplex on ~2,680 or ~17.8% of the
estimated 15,000 relevant homes in Perth
ESTIMATED HOMES BUILT WITH TYPLEX PRO-FIT
PerthRest of AU
c.15k homesc.15k homes
17.8%0.36%
Homes
with leaks
reported
Data as of 21
st
August 2024
Page 6 | Fletcher Building Limited | © August 2024

❶
SUPPORT FOR
CUSTOMERS &
HOMEOWNERS
❷
ESTABLISHING
CAUSATION
❸
INDUSTRY
RESPONSE
Iplex’s approach to the plumbing failures
We have had a consistent focus on three workstreams
A$15m interim investigation fund:
▪~$7m spent on repairs and leak detection units
▪~$8m on innovation, causation, administration and industry
response design
▪<$1m remaining
More than ~2,000 repairs funded to date, across ~900 WA homes
40 parties registered and claimed, of which 32 are builders. BGC
has not participated
Independent expert reports into causation confirm that:
▪Plumbing installation failures cause the leaks
▪There is no manufacturing defect
▪Pro-fit pipes conform to Australian Standards
Iplex has been working with the Industry to design,
develop and roll out an industry response to the
plumbing failures

Page 7 | Fletcher Building Limited | © August 2024
Given today’s announcement the interim fund will be extended to the end of September to allow the JIR to be put in place. This will increase the costs
of the interim fund by ~$1m

Trends in first time leak rates
Information to Iplex shows homes in Perth with first-time leaks are reducing, measured period-on-period
AVERAGE MONTHLY NUMBER OF PERTH HOMES EXPERIENCING A LEAK FOR THE FIRST TIME
64
43
59
45
75
45
37
24
30
25
49
25
101
67
89
70
124
70
YTD 23YTD 24Summer '23Summer '24Winter '23Winter '24
Other BuildersBGC
(Jan – Aug)
(Nov – April)
(May – Aug)
34%
21%
43%
Notes:
•Data Source: BGC – June press announcement and BGC’s CEO media update in August; Other Builders – leaks as reported to Iplex in the period shown
•August 2024 data has been estimated based on information received for the period up to 21
st
August
Page 8 | Fletcher Building Limited | © August 2024

Trends in leak rates
Different leak rates between plumbers / builders – and therefore between homes
Note: Data as at 21 August 2024
1.Homes impacted
2.Assumes 9,000 homes
18%
23%
15%
12%
1%
21%
21%
8%
13%
BGCDelstratAvelingShelfordSummitStatus
Residential
New ChoiceWow HomesAll others (33
- builders)
(2)
PLUMBING FAILURE RATES
1
(% of plumbing failures / Perth homes built with Typlex Pro-Fit pipe)
Our statistical analysis of trend data forecasts that not all WA homes fitted with Typlex Pro-Fit will experience one or more leaks over time and the leak rate
will be higher for some builders / plumbers than for others. Our provision for repair costs prudently allows for total impacted homes to rise to ~35%
BGC and three plumbing
groups account for ~95%
of WA leaks
32 BUILDERS WHO ARE PARTICIPATING IN IPLEX INTERIM FUND
12
34567
Average of
smaller builders
8 to 32
Page 9 | Fletcher Building Limited | © August 2024

LEAK DETECTOR
UNITS
➔Iplex AU will offer all eligible WA homeowners, free of charge, the installation of a leak detector
unit (LDU).
➔LDUs provide early alerts and reduce impact in the event of a leak.
➔Will be made available to BGC homeowners irrespective of BGC’s participation in the JIR.
LDUs funded 100% by Iplex
Iplex cost provision: A$20m
LEAK REPAIRS
Leak repair costs funded 80% by
Iplex, 20% by WA Govt
WA Govt contribution up to
A$30m
1
, Iplex 80% contribution
not capped
Iplex direct repair cost
provision: ~A$120m
➔Repairs under the JIR will take a stepped approach based on type & extent of plumbing failures.
➔Measures will include pipe and room repairs, ceiling pipe replacements in homes that have
suffered a plumbing failure, and – for WA homes with extensive failures – a full house re-pipe plus
temporary accommodation.
➔In the repair cost provision, Iplex AU has allowed for leak rates to potentially rise to ~35%.
➔Cost of repairs is higher than ~A$100m prior estimate principally due to allowance for a greater mix
of more expensive repairs (e.g. zone / house re-pipes).
OVERHEAD COSTS
➔Each party pays for its own administrative and overhead costs.
➔External claims management costs are included in leak repair bucket.
➔Does not include legal costs.
Iplex cost provision:~A$15m
How the Joint Industry Response will work
Leak detector units & a stepped approach to leak repairs offers a pragmatic response to plumbing failures
1. WA Government contribution capped at $30m; Govt has committed to reviewing JIR if costs rise above current estimates
Page 10 | Fletcher Building Limited | © August 2024

Page 11 | Fletcher Building Limited | © August 2024
Avoids a product recall, which would have involved massive &
needless disruption and cost at a time where there was no capacity
in the industry to deliver it. The JIR with Government is a more
pragmatic path
A co-ordinated response with a range of fix solutions provides
the right support to homeowners
Our work to date has shown that leak detector units and ceiling
pipe replacements in homes that have suffered a plumbing failure
are an effective way to mitigate future issues
The Joint Industry Response:
▪Focuses work in the right places
▪Avoids a product recall
▪Supports homeowners who really need it and
helps mitigate future issues if they arise
▪Brings together Government and industry in a
coordinated way
Why Iplex is committed to the Joint Industry Response
The JIR is in all parties’ interests

Financial considerations
Provision of ~A$155m based on ~35% of homes being impacted & allows for BGC homes to be included under JIR. Costs & cash flows
will be affected by actual level and will be lower if BGC does not join. Provision is Significant Item; cash flows are pre-tax
➔Assuming the JIR is finalised, Fletcher Building expects to make a provision of
~A$155 million in its FY25 accounts: ~A$120m for Iplex AU’s share of
estimated industry repair costs, ~A$20m for leak detectors, and ~A$15m for
overhead costs in administering the programme.
➔The provision assumes:
▪Up to 35% of WA homes fitted with Typlex Pro-Fit pipe leak over time.
▪Covers direct costs of builders, not their overhead or margin.
▪Legal costs, including litigation defence, are not included in the provision.
▪A mix of repair types including pipe repairs, ceiling pipe replacements, and
– for WA homes with extensive failures – a full house re-pipe plus
temporary accommodation.
▪Affected homes built by BGC are assumed to be remediated under the JIR
– even though BGC is not currently a participant. To the extent BGC
remains outside the JIR, the repair costs and associated cash flows for
Iplex AU are expected to be proportionally lower.
➔The provision is subject to the final documentation of the JIR.
➔Cash flows are expected to flow over a period of at least five years. Annual
cash flows will be subject to actual rate of leaks, type of repairs undertaken
and actual costs incurred over time and are expected to be somewhat front-
loaded due to initial costs of program set-up, need to repair homes already
affected, and installing leak-detectors.
Note: Leak rates based on assumption of total of 15,000 WA homes fitted with Typlex Pro-Fit pipe.
ESTIMATED TIMING OF IPLEX CASH FLOWS (A$M, PRE-TAX)
18
8
3
33
34
28
2020
18
Yr 1
(FY25)
Yr 2
(FY26)
Yr 3
(FY27)
Yr 4
(FY28)
Yr 5
(FY29)
~$50m
~$35m
18
8
3
33
24
21
15
14
13
Yr 1
(FY25)
Yr 2
(FY26)
Yr 3
(FY27)
Yr 4
(FY28)
Yr 5
(FY29)
~$40m
~$30m
LEAK RATE
~35%
(Basis of provision)
LEAK RATE
~25%
Page 12 | Fletcher Building Limited | © August 2024
Inclusive of BGC

Next Steps
➔Formally document the Joint Industry Response among agreed participants
▪Support under Iplex’s Interim Fund remains in place to the end of September to allow the JIR to get up and running
➔Stand up the operational and administrative support for the Joint Industry Response
▪ Inclusive of third-party experts to provide assurance on loss adjustment, cost control and temporary accommodation

Page 13 | Fletcher Building Limited | © August 2024

Questions?

Important Information
This presentation has been prepared by Fletcher Building Limited and its group of companies (“Fletcher Building”) for informational purposes. This disclaimer applies to this
document and the verbal or written comments of any person presenting it.
The information in this presentation has been prepared by Fletcher Building with due care and attention, however, neither Fletcher Building nor any of its directors, employees,
shareholders nor any other person gives any representations or warranties (either express or implied) as to the accuracy or completeness of the information and to the maximum
extent permitted by law, no such person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising
from this presentation or any information supplied in connection with it.
This presentation contains not only information about actions taken by Fletcher Building and its operations, but also some forward looking statements, that is statements related to
future, not past, intentions, events or other matters. Forward looking statements may include statements regarding our intent, belief or current expectations in connection with the
information available to Fletcher Building. Such forward looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks and
uncertainties, including material adverse events, significant one-off expenses and unforeseeable circumstances. Actual figures or estimates may differ materially from those
projected. Except as required by law, or the rules of any relevant stock exchange or listing authority, no person is under any obligation to update this presentation at any time after
its release or to provide further information about Fletcher Building.
The information in this presentation does not constitute financial product, legal, financial, investment, tax or any other advice or a recommendation.
Page 15 | Fletcher Building Limited | © August 2024