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, 23 October 2024: Fletcher Building is holding its 2024 Annual Shareholders’
Meeting today at 10.30am NZDT. Attached are the:

• Acting Chair’s address
• Managing Director and Chief Executive Officer’s address
• ASM presentation

Included in the Managing Director and Chief Executive Officer’s address is an update
on trading performance and outlook for FY25.

In his address to shareholders, MD & CEO Andrew Reding said: “For our materials and
distribution businesses, first quarter FY25 (1Q25) market volumes were 10% - 15% lower
year on year (YOY) and September trading saw revenues track 12% lower YOY (vs. -7%
YOY in July and August). Gross margin pressure continues in a highly competitive
environment, especially in New Zealand.”

“Meanwhile in the Residential and Development Division, house sales are averaging 17
per week in 1Q25 compared to 23 per week in 1Q24. September saw an improvement
in house sales to 21 per week compared to 14 per week in July and August., however,
margins were lower YOY due to the decline in New Zealand house prices in the past
c.6 months.

“Pleasingly, the Construction Division has performed solidly with 1Q25 earnings and
margins improved YOY.

“We continue to expect FY25 market volumes in our materials and distribution
businesses to be c.10% - 15% lower than FY24, and expect FY25 EBIT before significant
items to be c.60% weighted to 2H25 mainly due to three factors:

• cost savings of at least $180 million are expected to be c.60% weighted to 2H25;
• seasonally higher 2H25 house sales in Residential and Development, with c.170-
180 additional settlements expected in 2H25 compared to 1H25; and
• non-repeat of c.$20 million of one-off costs incurred in 1H25 in relation to NZ
electricity, Golden Bay MVAC ship outage and restructuring initiatives.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
“The key downside risks to the business are further deterioration in materials and
distribution market volumes and / or lower-than-target house sales.

“The fundamentals of Fletcher Building’s business remain sound, and we are well
positioned to deliver through the cycle as the market recovers. In addition, we have
strengthened our balance sheet which allows us to focus on executing operational and
strategic initiatives. Our goal is to fulfil our potential and to build a company that our
people, customers, communities and our shareholders, can be proud of.”

In her address to shareholders, Acting Chair Barbara Chapman announced her intention
to step down from the Board on the appointment of a new Chair. Ms Chapman
commented: “It is disappointing to me that we haven’t found a Chair yet, but I can assure
shareholders we are working hard to find the best person for the job. This weighs on the
share price, and finding a permanent Chair is a priority for the Board. We expect to be
able to finalise this process by the first quarter of next calendar year at the latest,
following which it is my intention to step down from the Board to allow for further Board
renewal.”

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

---

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

Wednesday 23 October 2024

FLETCHER BUILDING LIMITED
2024 Annual Shareholders’ Meeting
Acting Chair’s Address

Tena koutou katoa, and good morning. I am Barbara Chapman, Acting Chair of your Company.

My apologies for not being with you today. As I have Covid - this presentation has been pre-
recorded. I shall attend online later in the meeting to answer your questions, but in the
meantime I would very much like to thank Peter Crowley for stepping in for me with only a
couple of days’ notice.

Contextualising the market backdrop

As we reflect on the past financial year, I want to acknowledge that this has been a frustrating
and challenging period for our shareholders. The performance of the company, as reflected in
its share price and dividend payouts, is not where any of us want it to be, and shareholders
have rightly expressed their concerns and disappointments. We share that concern and
disappointment.

We are currently experiencing one of the deepest and most prolonged market downturns in
recent history, and one that is affecting all of our businesses and industries. Although we had
expected a pull back from the FY23 and FY24 activity levels, it is fair to say that the market
turned down more quickly, and more deeply, than we, our customers, and our external
economics advisors, had anticipated and the impact on our financial performance has been
significant.

Fletcher Building is clearly not alone in facing a difficult macro environment. However, we are
particularly exposed to residential construction activity levels in our markets - as noted at the
bottom of this slide – with more than 50% of our revenue is weighted to residential construction
across New Zealand and Australia.

These charts show the material decline of between 30 to 40% in Australia and New Zealand
residential sector activity from their respective market peaks to June 2024. To give you a sense
of scale, this decline is greater than we experienced in the GFC.

In addition to the volume decline in the residential sector, we’re also seeing a marked
slowdown in commercial and infrastructure construction in NZ. Based on past building cycles,

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
we might have expected those markets to continue to provide some support at this stage in the
cycle, so this is not typical.

Other market factors that we are having to manage include a tough housing market in NZ and
ongoing cost inflation.
All of these factors weighed on our financial performance in FY24 and are continuing to put
pressure on our business in the first quarter of this financial year.

FY24 key financial results

Against this backdrop, earnings before interest and tax for continuing operations and before
significant items, for FY24 was $509 million, down 35% from $785 million in FY23. The Group
EBIT margin before significant items from continuing operations softened in FY24 to 6.6%, from
10.2% in FY23.

During the year, we made the decision to divest our Tradelink operations in Australia, and in
August 2024 we were pleased to enter into a sale agreement with Metal Manufactures Pty
Limited. The transaction completed on 30 September.

After factoring in Tradelink’s discontinued operations, we recorded a net loss after tax of $227
million, compared to net earnings of $235 million in FY23. The loss is largely attributed to the
Higgins non-cash impairment and write-down, the legacy provisions and the loss from
discontinued operations with Tradelink. Our return on funds employed before significant items
was 10.0%, compared to 17.1% in FY23.

Given these market conditions, strong cash flow performance and tight control of working
capital have been key priorities for us over the past year. Trading cash flows from continuing
operations (excluding legacy and significant items) were $784 million, compared to $537
million in FY23. Overall cash flows from operational activities were $398 million, compared to
$388 million in FY23.

Given the current market conditions, and in line with our dividend policy and the covenant
amendment arrangements agreed with our banks in June, the Board did not declare a final
dividend.

Many of you will be interested about our intent around returning to dividend payments. The
Board is not in a position to provide any guidance around this today, other than to say that this
is a decision that the Board will make as soon as appropriate.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
FY24 key non-financial results

Turning now to our non-financial performance metrics.

Importantly, we continue to drive a strong health and safety culture and risk controls in order to
keep our people safe. Our injury rates are at top quartile industry levels and 89 percent of our
sites were injury-free in FY24. We are working hard on this and remain determined to keep
improving.

On sustainability, we continue to make good progress with 22% intensity and 19% absolute
CO2 reductions compared to our baseline 2018 level, indicating that we’re on track for 30%
lower absolute carbon emissions by 2030. Meanwhile, we diverted 87% of waste from landfill,
well exceeding our 70% by FY26 target ahead of time.

For customers, we are delighted to see continuous improvement in our service performance
with our Net Promoter Score increasing to 48. NPS can be a challenging measure to improve
as it takes time, resources and continuous effort across the entire customer journey, so this is a
particularly positive result. Our focus on servicing our customers continues to be critically
important as we navigate the difficult environment.

Finally, we also saw our overall employee engagement improve to an employee net promoter
score of 35. Throughout the year we have been engaging more with our front-line staff to drive
ownership and achievement in business plans as well as driving recognition programmes. We
are pleased to see our efforts in this area bearing fruit.

And overall we are tracking very well to achieving our targets across all these metrics.

Risks on WA plumbing and legacy construction projects

In addition to these tough markets, there is no doubt that legacy issues have weighed heavily
on the company’s financial performance. These issues are complex and have consumed a
great deal of our time and resources. However, we have made meaningful progress over the
course of the year in relation to the two most significant legacy issues facing the company.

First, we achieved a major milestone in relation to the WA plumbing failure issue, with the
announcement in August of an in-principle agreement with the Western Australian Government
and homebuilders, known as the Joint Industry Response.

From the outset, Iplex took a leadership role in bringing stakeholders together to address the
issue. Our goal has been to understand the issue, try to prevent further leaks, and achieve a
timely and pragmatic outcome for affected homeowners.

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

We believe that the Joint Industry Response, including the Western Australian Government’s
$30 million contribution, achieves those outcomes. All parties are working hard to reach final
agreement. We will not be distracted from that goal by stakeholders with their own agendas.
The agreements Iplex is making in the JIR involve cash payments over many years which are
within its capacity to pay. In addition, they will be guaranteed by the Fletcher Building Australian
group.

Importantly, the Joint Industry Response avoids a product recall which would have been far
more costly and disruptive to homeowners, the WA home building industry and our own
business.

Meanwhile, our last remaining legacy construction projects remain on track for completion in
line with the update we provided at our FY24 results.

We achieved full works completion on the Pūhoi to Warkworth motorway, one of NZ’s largest
infrastructure projects. We have also made real progress on the New Zealand International
Convention Centre project. Through the year, the Construction team completed and handed
over the Convention Centre carparks and the Horizon Hotel, and the completion of Convention
Centre is still on track for this financial year. The additional provisions required to complete this
project have been very disappointing but reflect the incredibly complex and costly process of
remediating the site after the fire.

We are looking forward to handing over a truly world class facility and moving on from the
considerable pain and distraction this has caused the organisation and our shareholders over
the past few years.

Decisive and pre-emptive action taken to strengthen our balance sheet

There has been a fair amount of commentary about our capital raise, so I want to give you the
view from the Board on the need for the capital and the process we went through to execute it.

A lot of good work had gone in to negotiating covenant relief with our lenders, reducing costs,
conserving cash, tightly managing capex, and divesting half of Higgins in Fiji, and Tradelink. But
we could see that the market conditions ahead were very tough, and those steps weren’t going
to be enough to reduce debt and leverage in line with our target credit metrics.

So we made the call to shore up the balance sheet with an equity raise.

We then had three decisions to make – how much, which structure, and with which lead
manager.

Firstly, how much to raise?

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
$700m was chosen after a detailed sufficiency analysis as the right amount to give us sufficient
confidence around the balance sheet but not too much to be lazy. It still requires the company
to perform in a difficult market and focus on costs, cash and capex.

Secondly, which structure?

We discussed several different options with our advisers, and the pros and the cons of the
different structures.

An Accelerated Non-Renounceable Entitlement Offer – which is a pro-rata rights offer to all
eligible existing institutions and retail shareholders - and Placement structure was chosen as
the best option to give us certainty that the target amount could be raised effectively in a
difficult market context, looking after our existing shareholders, and providing the tightest
pricing for a fully underwritten offer.

Our objective was to optimize value for all shareholders, including those who weren’t able to, or
chose not to, participate.

There are many ways to cut the data to see how the ANREO and Placement structure
performed vs a theoretical Accelerated Renounceable Entitlement Offer, but even those
shareholders who didn’t participate in the ANREO have benefitted from the uplift in the share
price which has occurred post-raise. Based on the modelling we have done, that benefit to
shareholders who didn’t participate is well in excess of the value they may have received from
the estimated price of their rights.

And finally, which lead manager?

We chose Jarden as our lead manager for the raise. Jarden had been involved supporting the
business on a number of fronts, including our considerations as to the best future structure for
our Resi business. They know us well and were not starting from scratch.

We purposefully chose just one lead manager. We took the view that a leak about a capital
raise would be very detrimental to the share price, so we wanted to keep it tight.

I have been asked about the costs of the capital raise. Shareholders should rightly challenge
such costs as they are large. In this case, our total costs including advisers and other expenses
amounted to $22 million.

All capital raises are not equal. Raising capital in a stressed balance sheet context, such as
ours, is invariably more expensive to execute than raising capital for capital expansion or
growth purposes, because of the different risks involved.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
In this case, we had good information on pricing precedents, and also had our own prior
experience to draw on. The result was we were able to secure an arrangement that was
actually $2m cheaper than when Fletchers raised capital in 2018.

Board and leadership changes

It is disappointing to me that we haven’t found a Chair yet.

The delay weighs on the share price, and finding a permanent Chair is a priority for the Board. I
can assure you we are working hard to find the best person for the job.

We expect to be able to finalise this process by the first quarter of next calendar year at the
latest, following which it’s my intention to step down from the board to allow for further board
renewal.

There have been a number of disappointments and some highlights during my time on the
Board, and a number of very challenging decisions to make since I became acting Chair.

The fire at the convention centre and the plumbing failures in Western Australia have been
major disappointments, along with the need to write down Higgins last year. These issues
have been complex for the team to manage and weighed heavily on the share price, to the
detriment of our very loyal shareholders.

In addition, our heavy exposure to the residential building sectors in both Australia and New
Zealand has weighed on the share price in more recent times. That sector has been in the
doldrums on both sides of the Tasman for a while and the team are very much focused on
cutting our cloth to meet these market conditions through cost cutting, cash generation, and
capex conservation initiatives. The cycle will improve, and we will be ready for it.

Needing a capital raise to shore up the balance sheet was also disappointing, but in the
circumstances it was the right thing to do, and it was executed well. The share price
performance post the raise has been pleasing.

It’s my own view that our legacy issues are now largely behind us, and the Company now has
the opportunity to build on our current momentum. In that regard, since March we have:

• found an excellent CEO and refreshed the leadership team;
• undertaken a refresh of the Board which, with my departure, will be ongoing;
• de-risked our exposure in Western Australia;
• shored up the balance sheet with a successful capital raise;
• exited Tradelink;

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
• embarked on a strong cost out programme, taken a laser approach to capex allocation,
conserved cash, and commenced a portfolio review to make sure we are in businesses
which add real value; and
• of course, we have largely completed the build of the Convention Centre.
It’s exciting to see this momentum, and all these things will enable our permanent Chair to be in
the best possible position to take the company forward.

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

---

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

Wednesday 23 October 2024

FLETCHER BUILDING LIMITED
2024 Annual Shareholders’ Meeting
Managing Director & Chief Executive Officer’s Address

Tēnā koutou katoa. I would also like to add my welcome to those joining the meeting today, both
here in the room and online.

For those of you who don’t know me, this isn’t in fact my first Fletcher Building Annual Shareholder
Meeting. I spent much of the late 90s and early 2000s in senior leadership roles at Fletcher
Building, including Chief Executive of Building Products and Steel and Managing Director of
Fletcher Wood Panels, before departing to lead organisations in the Rank Group, including Carter
Holt Harvey Pulp & Paper.

I’ve been described in the media, perhaps somewhat unkindly, as an ‘industry veteran’ but this is
a label I’m very proud of, because it’s an industry I’ve loved and worked in for more than 40 years.
I’m passionate about Fletcher Building, its unique heritage, its people and its businesses.

Fletcher Building is a company with enormous potential and opportunities. It is staffed by
excellent people and I’m thrilled and humbled by the opportunity to lead them. My job will be to
translate our shared vision, strong operating businesses and committed people into high
performance at a group level.

On the ground – connecting with our people and businesses

Since being appointed as a director in August this year, I have been spending time reacquainting
myself with the business in the lead-up to formally taking over as CEO last month. In the process,
I’ve enjoyed visiting a wide range of Fletcher Building companies and sites and meeting people
from around the business. These visits have included Waipapa Pine, Golden Bay Cement,
Dimond Roofing and the Firth Block Plant in Northland along with EasySteel, Pacific Coil Coaters
and our amazing new Winstone Wallboards manufacturing facility in Tauranga.

And just to keep busy, I’ve also met all of our major shareholders at least once over the recent
capital raise.

One thing I’ve been particularly impressed with is the focus on safety everywhere I have visited.
Everyone I asked about whether we paid enough attention to safety, confirmed we do and when
further asked if they felt able to stop production on seeing an unsafe situation, everybody un-
haltingly answered “Yes!”. Another thing I have observed is the commitment and dedication of
our frontline people and teams, particularly their focus on delivering exceptional service to our
customers.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
As I mentioned, I’ve also been out and about talking with investors, where, to be frank, the
messages and feedback I’ve been hearing have been less positive. As shareholders, you have
every right to have high expectations around our performance and I want to assure you that we
have a clear focus on managing through the current cycle and delivering value for our investors.

Trading update

Turning now to recent trading.

For our materials and distribution businesses, market volumes for the first quarter of this financial
year declined 10-15% versus the comparative period.

In September, revenues declined 12% year on year. This compares to a 7% decline in July and
August. Pressure on gross margins continue in the current highly competitive environment,
especially in New Zealand.

Meanwhile, in our Resi and Development Division, house sales have averaged 17 per week in
the first quarter of this financial year compared to 23 per week in the comparative period.
Although we saw an improvement in house sales to 21 per week in September compared to 14
per week in July and August, margins were lower year on year due to the decline in New Zealand
house prices in the past 6 months.

Pleasingly, the Construction Division has performed solidly with first quarter earnings and
margins improved year on year.

FY25 Outlook

Now to the outlook for the remainder of the year ahead.

We continue to expect FY25 market volumes in our materials and distribution businesses to be
circa 10% to 15% lower than FY24.

We also expect FY25 EBIT before significant items to be c.60% weighted to the second half mainly
due to three factors:

Firstly, cost savings of at least $180 million are expected to be c.60% weighted to the second half;

Secondly, we expect seasonally higher second half house sales in Resi & Development, with
approximately 170 to 180 more settlements expected when compared to the first half; and

Thirdly, we incurred some $20 million of one-off costs in the first half which relate to the outage
of Golden Bay’s cement transport ship - the MVAC, NZ electricity and restructuring initiatives
which are not expected to reoccur in the second half.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
The key downside risks to the outlook are further deterioration in materials and distribution
market volumes and / or lower-than-target house sales.

Long term fundamentals solid

Finally, despite all the noise and distractions, the fundamentals of the business remain sound
and we are well positioned to deliver through the cycle.

Starting on the left-hand side of this slide and working our way across, the Company operates in
attractive markets, with favourable long-term dynamics and demand tailwinds, and our ability to
capitalise on these opportunities can be driven by a leading portfolio of high-quality businesses.

We have well-positioned, quality businesses that operate in appealing markets.

And we have strengthened our balance sheet which allows us to focus on executing operational
and strategic initiatives.

I’d like to wrap up by reiterating my fundamental belief in the strength and resilience of our
businesses and the capability of our people and teams. Fletcher Building is a company with
enormous potential and opportunities, managed and operated by people who are passionate
about what they do. Our goal is to fulfil our potential and to build a company that our people,
customers, communities, and you, our shareholders, can be proud of.

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

---

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
2024 Annual
Shareholders’ Meeting
23 October 2024

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
Peter Crowley
Independent, Non-Executive
Director

Directors
Peter Crowley
Cathy Quinn
Barbara Chapman
Sandra Dodds
Andrew Reding
Tony Dragicevich
Page 3 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Refreshments
Meeting agenda
Acting Chair’s Address
Managing Director and Chief Executive Officer’s Address
Voting on Resolutions
General Q&A
Q&A
Page 4 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
Barbara Chapman
Acting Chair

AUS DWELLINGS COMMENCED (‘000s) | ROLLING 12 MONTH
140
165
190
215
240
Mar-19Dec-19Sep-20Jun-21Mar-22Dec-22Sep-23Jun-24
NZ RESIDENTIAL SQUARE METERAGE CONSENTED (‘000s) | ROLLING 12 MONTH
4,000
5,000
6,000
7,000
8,000
Mar-19Dec-19Sep-20Jun-21Mar-22Dec-22Sep-23Jun-24
FLETCHER BUILDING FY24 REVENUE BY MARKET (%)
Contextualising the market backdrop – steep pace of decline
36% 15% 22% 3% 17% 7%
NZ ResidentialAU ResidentialNZ InfrastructureAU InfrastructureNZ CommercialAU Commercial
Peak to Jun-24
39%
Peak to Jun-24
31%
Page 6 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

FY24 key financial results
EBIT
1,2
$509m
FY23 $785m
EPS
(29.0)c
FY23 30.0c
EBIT
1,2
margin
6.6%
FY23: 10.2%
Dividend
nil
FY23: 34.0cps
Cash flows from
operating activities
$398m
FY23 $388m
Return on funds employed
1,2
10.0%
FY23: 17.1%
Revenue
1

$7,683m
FY23 7,679m
Net (Loss) / Earnings
$(227)m
FY23 $235m
Page 7 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024
1. From continuing operations, excludes Tradelink which is treated as discontinued operations
2. 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

FY24 key non-financial results
Customer
Net Promoter Score
3
36
42
48
FY22FY23FY24
Engagement
Employee Engagement Rating
26
29
35
FY22FY23FY24
Safety
Total Recordable Injury
Frequency Rate
1
Sustainability
Carbon (CO
2
) Emissions

&
Intensity
2
3.4
3.1
3.3
FY22FY23FY24
1,199
969
162
126
-10
10
30
50
70
90
110
130
150
170
-
200
400
600
800
1,000
1,200
1,400
1,600
FY18FY24
Target zero
serious injuries
Target 30%
lower carbon by 2030
net zero carbon by 2050
-19%
Target ≥ 40
(global upper quartile)
Target ≥55
Page 8 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024
1. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries. Excludes Tradelink & Wood Products
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 customer performance & is an indication of how satisfied our customers are with our business. Excl. Construction &JV’s

Risks on WA plumbing and legacy construction projects dimensioned
WA
PLUMBING
➔Joint Industry Response (JIR) to the WA plumbing failures agreed in principle
➔Iplex® AU and the WA Government committed to cover direct costs of repairs by
participating builders: 80% by Iplex® AU and 20% by the WA Government
➔Expect to record a pre-tax provision of ~A$155 million in FY25 financial statements
➔Cash outflows are expected to be phased over ~5 years
➔Claims and proceedings are ongoing, and risks remain, whether JIR is finalised or not
LEGACY
CONSTRUCTION
➔Full works completion achieved on Pūhoi to Warkworth (P2W), Horizon Hotel handed
over, Contract Works Insurance on NZICC settled early
➔NZICC and Wellington International Airport Limited Carpark are nearing completion.
Page 9 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Decisive and pre-emptive action taken to strengthen our balance sheet
$700M OF EQUITY
RAISED
...TO REPAY DEBT,
STRENGTHEN THE
BALANCE SHEET...
...AND IMPROVE
FINANCIAL STABILITY
AND RESILIENCE
Page 10 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Board and leadership changes
➔BOARD RENEWAL, STRONG INDUSTRY APPOINTMENTS
➔MD & CEO APPOINTED
➔KEY PRIORITY IS PERMANENT CHAIR APPOINTMENT
Page 11 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
Andrew Reding
Managing Director and Chief
Executive Officer

On the ground – connecting with our people and businesses
Page 13 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Trading update
Unique trading conditions in Materials & Distribution in 1Q25, however improvement in Resi & Devt house sales observed in September
▪1Q25 market volumes are 10% - 15% lower YOY
▪September trading saw revenues track lower by 12% YOY (vs. down 7% YOY in Jul-Aug)
▪Gross margin pressure continues in highly competitive environment, esp. in New Zealand
MATERIALS &
DISTRIBUTION
1
RESIDENTIAL &
DEVELOPMENT
▪House sales averaging 17/week in 1Q25 (compared to 23/week in 1Q24);
▪September saw an improvement in house sales to 21/week (vs. 14/week in Jul-Aug)
▪Margins lower YOY due to decline in NZ house prices in past ~6 months
CONSTRUCTION
▪Business performing solidly, 1Q25 earnings and margins improved YOY
▪Continue to target completion of construction on NZICC by Dec-24, with commissioning in 2H25
▪Remedial works for WIAL carpark remain on track for completion in FY25
Page 14 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024
1. Materials & Distribution comprises the Building Products, Distribution, Concrete, and Australia divisions

FY25 Outlook
Expect FY25 EBIT to be c.60% weighted to 2H primarily due to cost savings, housing settlements & non-repeat of one-off costs
FY25
OUTLOOK
▪Continue to expect FY25 market volumes in our Materials & Distribution
1
businesses to be
c.10-15% lower vs FY24
▪Consistent with our expectation in September
▪In line with decline in market volumes in 1Q25
▪Expect FY25 EBIT
2
to be c.60% weighted to 2H25 given:
▪Gross overhead costs savings in FY25 of at least $180m, c.60% weighted to 2H25
▪Seasonality in Resi & Devt, with c.170 – 180 additional settlements expected in 2H25 vs. 1H25
▪Non-repeat of c.$20m one-off NZ electricity, MVAC ship outage & restructuring costs incurred
in 1H25
▪FY25 earnings remain sensitive to market conditions
▪Materials & Distribution: an additional +/-5% change in market volumes is estimated to
equate to +/- $80 – 90 million in annualised EBIT
2
impact
▪Resi & Devt: an additional +/- 100 settlements per year is equivalent to +/- c.$15m in
annualised EBIT
2
impact
Page 15 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024
1. Materials & Distribution comprises the Building Products, Distribution, Concrete, and Australia divisions
2. EBIT is before significant items

Fletcher Building remains focused on delivering near-term milestones
➔Ongoing cost reductions to manage profitability
➔Continued focus on cash generation
➔Managing working capital and capex to respond to market conditions
➔Completing remaining legacy issues
➔Strategic review underway – completion first half of calendar 2025
Page 16 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Long term fundamentals solid
WE OPERATE IN ATTRACTIVE
MARKETS...
...WHERE WE HAVE STRONG
BUSINESSES...
...WELL-POSITIONED ONCE
MARKET VOLUMES RECOVER
Population dynamics and
infrastructure deficit underpin
long term sector demand
1
Long term economic and
political stability support strong
pipeline of residential, non-
residential & infrastructure
construction
2
Significant operating leverage
expected to position the
Company to capitalise once
market returns
2
Balance sheet strengthening
allows us to focus on executing
operational and strategic
initiatives
1
Page 17 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
Questions

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
Resolutions and Voting

Resolutions
➔Ordinary Resolutions
➔Resolution 1 – Re-election of Cathy Quinn
➔Resolution 2 – Election of Tony Dragicevich
➔Resolution 3 – Election of Andrew Reding
➔Resolution 4 – Auditor fees and expenses
➔Resolution 5 – Adoption of Remuneration Report
Page 20 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Remuneration principles
❶
SHAREHOLDER VALUE
❷
OUR PEOPLE
❸
STRATEGY
❹
RISK
An OWNERSHIP
CULTURE with ‘skin-in-
the- game’
ATTRACT, RETAIN and
REWARD high
standards of
performance and
values
SUSTAINABLE
EARNINGS &
PROFITABLE GROWTH
(short- and long-term)
Promoting high
standards and
ACCOUNTABILITY
Page 21 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Our executive remuneration framework supports our performance focus
and remuneration principles
•50%: relative
shareholder returns
•50%: 3-year ROFE
performance
Fixed Remuneration
Short Term Incentive
(STI)
Long Term Incentive (LTI)
•65%: Financial goals
•35%: Non-financial
goals
•Base Salary
•KiwiSaver + Health
Insurance
Page 22 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

This approach has resulted in strong alignment to CEO remuneration
outcomes with actual performance
FY19FY20FY21FY22FY23FY24
36%
0%
0%
0%
94%
0%
93%
0%
36%
0%
0%
0%
Short Term Incentive
(% earned of max STI)
Long Term Incentive
(% earned of max LTI)
1
Page 23 | Fletcher Building Limited Annual Shareholders' Meeting 2024 | © October 2024

Fixed Remuneration: $1.5m
STI Cash: $1.1m
STI Equity: $1.1m
LTI: $2.2m
Fixed Remuneration: $2.3m
STI Cash: $1.9m
STI Equity: $1.9m
LTI: $1.8m
Group CEO remuneration arrangements (At maximum)
Previous Group CEO - Ross TaylorNew Group CEO - Andrew Reding
Equity:
$3.6m
Cash:
$4.2m
Equity:
$3.3m
Cash:
$2.5m
Page 24 | Fletcher Building Limited Annual Shareholders’ Meeting 2024 | © October 2024

Fletcher Building Limited
Annual Shareholders’ Meeting 2024
2024 Annual
Shareholders’ Meeting
23 October 2024

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.
This presentation dated 23 October 2024 should be read in conjunction with, and subject to, the explanations and views of future outlook on market conditions, earnings and
activities given in the 2024 Annual Report (together with management commentary) published on 21 August 2024.
In certain sections of this presentation, Fletcher Building has chosen to present certain financial information exclusive of the impact of significant items. A number of non-GAAP
financial measures are used in this presentation which are 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 2024. You should not consider any of these statements in isolation from, or as a substitute, for the information provided in the
financial statements for the 12 months ended 30 June 2024, which are available at www.fletcherbuilding.com.
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 may contain forward looking statements, that is statements related to future events or other matters. Forward looking statements may include statements
regarding our intent, belief or current expectations in connection with our future operating or financial performance, or market conditions. 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 other unforeseeable circumstances. There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised. Actual results
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 26 | Fletcher Building Limited Annual Shareholders’ Meeting 2024 | © October 2024