Settlement Reached with NZTA on Puhoi to Warkworth Project

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

20 June 2025

Settlement Reached with NZTA on Puhoi to Warkworth Project

Fletcher Building has announced that Fletcher Construction Company and Acciona, its
50% partner in the design and construction of the Puhoi to Warkworth (P2W) motorway
(together, the Construction JV), have reached a settlement with the New Zealand
Transport Agency (NZTA) and the Northern Express Group (NX2) of the Construction JV’s
claim related to the impacts and delays to the project arising from COVID-19 and other
weather events.

The P2W road opening was successfully achieved in June 2023. Originally scheduled for
completion in December 2021, the project experienced delays and inefficiencies primarily
due to the impacts of the New Zealand Government’s COVID-19 pandemic response,
alongside other challenges.

The Construction JV lodged a claim with NX2 and NZTA to recover costs associated with
these COVID-19-related delays and additional weather-related disruptions. These claims
were the subject of an agreed dispute resolution process, but have now been resolved by
agreement between the parties.

The settlement, whilst less than the expected recovery that had formed part of Fletcher
Building’s provision associated with the project, represents a commercial resolution to a
longstanding issue and avoids a drawn-out dispute. As a result of the settlement, the
Group expects to recognise a loss on claims receivable of ~$16.4m against the P2W
project position in FY25, with a corresponding impact to FY25 EBIT before Significant
Items. This loss relates to revenue recognised over the life of the P2W project and has not
previously been anticipated in prior commentary regarding the FY25 earnings
outlook. The settlement means that further cash proceeds from the project of ~$56m will
be received by the Group in FY25.

Managing Director and Group Chief Executive Officer Andrew Reding commented “This
represents further progress in closing out the legacy project issues that have absorbed
significant management time and cost”.

The Construction JV has separately submitted material claims under the Contract Works
Insurance policy for damage to the project caused by the landslips and weather events
during construction. These claims are still the subject of negotiations with the insurers.

There is also a range of less material matters to be resolved in relation to the project. The
resolution of these matters, together with the insurance claims, will determine the final
P2W project outcome.

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