Fletcher Building Updates on NZICC

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

6 June 2025

Fletcher Building Updates on New Zealand International Convention Centre
Fletcher Building acknowledges the legal action announced today by SkyCity
Entertainment Group (SkyCity) against its subsidiary, Fletcher Construction, regarding the
New Zealand International Convention Centre (NZICC) project. The risk of a dispute with
SkyCity over delay and costs associated with the NZICC has been flagged in previous
disclosures, including most recently in the Company’s 2024 Annual Report and the FY25
Interim Financial Results.

The Company notes that Fletcher Construction has already paid significant liquidated
damages to SkyCity in relation to the delays in delivering the NZICC in accordance with
the building works contract. Accordingly, Fletcher Construction will vigorously defend
itself against the SkyCity claim for further liquidated damages beyond the capped
amount provided for in the building works contract. Whilst the delivery of the NZICC
project has suffered from a number of challenges, including as a consequence of the fire
and Covid-related impacts, Fletcher Building rejects absolutely that it has breached its
contract with SkyCity in the manner alleged.

More generally, Fletcher Building confirms that it has completed the construction work
on the NZICC. Its focus has now moved to remediating defects and, seeking to work
collaboratively with SkyCity, completing the complex commissioning processes and
securing required Council sign-offs. Fletcher Building anticipates handing over the site
to enable SkyCity to commence its operational readiness activities during the second
half of 2025, in preparation for SkyCity’s announced opening in February 2026.

The net costs to complete the NZICC have been re-assessed, including taking into
account the costs and resources estimated to be required for the project’s final stages,
with the result that Fletcher Building expects to record a further provision of c$12–15
million, in addition to provisions previously reported in February 2024. That provision
does not include any costs associated with the SkyCity dispute announced today. The
Group also continues to pursue recoveries under the NZICC Third Party Liability (TPL)
insurance policy of more than $100 million and has brought legal action against the
roofing membrane subcontractors in relation to the fire, which will commence shortly in
the High Court. While the Company considers it has good grounds to recover material
amounts under the TPL policy and the Court action, it has not recognised any recoveries
at this time.

Fletcher Building remains committed to delivering this landmark project and is confident
that once it is available to be seen and used by the public and international guests they
will be delighted with the quality of the asset that will make a meaningful contribution to
the New Zealand economy.

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