Fletcher Building Divisional Restructure, Executive Changes

Fletcher Building Limited, 810 Great South Road, Penrose, Auckland 1061, New Zealand

16 May 2025

Fletcher Building Announces Divisional Restructuring and
Associated Executive Changes
Fletcher Building has announced that, coming out of its ongoing strategic
review, its Australian Division will be disestablished as a standalone division,
with its operating businesses integrated into two new trans-Tasman divisions:
• Light Building Products: includes most of Fletcher Building’s New Zealand
building products businesses (Comfortech, Winstone Wallboards, Iplex,
Laminex and Wood Products), now combined with Oliveri Australia, Iplex
Australia, Laminex Australia and Fletcher Insulation from the former
Australian Division. Hamish McBeath, previously Chief Executive of New
Zealand Building Products, will lead this division.
• Heavy Building Materials: encompassing its concrete-related businesses
(Winstone Aggregates, Golden Bay Cement, Firth Concrete and Humes), the
New Zealand steel businesses, and Australia’s Stramit. Thornton Williams,
formerly Chief Executive of the Concrete Division, will lead this division.
As a result of this restructuring, Gareth O’Reilly, Chief Executive of the former
Australian Division, will leave the company. Group CEO and Managing Director
Andrew Reding acknowledged Mr O’Reilly’s significant contributions and
wished him well.
Fletcher Building’s other three divisions (Distribution, Construction and
Residential & Development) and executive team roles remain unchanged.
Alongside this restructuring, a further review of the Company’s corporate
structure has been carried out and it is anticipated that this will deliver ~$15
million annualised savings in structural costs in the short term (which are in
addition to the ~$200m of cost out targeted for FY25). The review is ongoing,
and the Group will continue to identify opportunities for further material cost
reductions. Investors will be provided with further updates on the cost out
review as material changes are made, and at the Group’s Investor Day on 24
June.

This restructuring forms a first step in a broader evolution of Fletcher Building’s
operating model which will focus on empowering strategic Business Units with
the decision-making authority, tools, resources and capabilities they need to
succeed in their market, while bearing full accountability for their performance.
A leaner corporate centre will prioritise strategic alignment, capital allocation
and value creation.
Andrew Reding said: “Fletcher Building is strategically positioned in the growing
markets of Australia and New Zealand, where our businesses target leadership
in segments with attractive long-term fundamentals. Our operating companies
are deeply embedded in their local markets, giving them strong insight into
customer needs, agility in decision-making, and the ability to respond quickly to
changing market dynamics. We want to leverage these strengths, evolving
Fletcher Building into a more decentralised, high-performing portfolio
company.
“Our businesses will operate with greater accountability, supported by a
streamlined Group centre. We are in the process of working through these
proposed changes as we devolve activities into our operating divisions and
business units. We will be working to support those of our people who may be
impacted by the changes over the coming weeks.“
Commenting on the Group’s recent performance, Andrew Reding said: “Since
our interim results, our businesses have seen no significant improvement in
market conditions, with market volumes continuing to be challenging due to
macroeconomic uncertainties and the lack of any material momentum in the
recovery of New Zealand’s economy. Our businesses operating in the
commercial and infrastructure segments continue to face reduced or deferred
spending, partly due to recent weather events and reduced sub-division
activity. Meanwhile, residential property sales also remain at subdued levels,
reflecting lower levels of liquidity across the market.”
ENDS

Authorised for release to the market by Haydn Wong, Company Secretary.
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For further information please contact:

INVESTORS Will Wright, Chief Financial Officer +64 21 490 251 Will.Wright@fbu.com
MEDIA Christian May, Chief Corporate Affairs Officer +64 21 305 398 Christian.May@fbu.com

For information on Fletcher Building visit fletcherbuilding.com