Fletcher Building : 2023 Annual Results Presentation

Fletcher Building Full Year Results to 30 June 2023

16 August 2023

Fletcher Building Limited

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 provides additional comment on the Annual Report 2023 dated 16 August 2023. As such, it should be read in conjunction with and subject to the explanations and views given in that document. Unless otherwise specified, all information is for the year ended 30 June 2023.

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 2023. 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 2023, 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 given 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, not past, 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 2 | Fletcher Building Limited Full Year Results Presentation | © August 2023

Agenda

1.	Results Overview	Ross Taylor
2.	Financial Results	Bevan McKenzie
3. Outlook	Ross Taylor

Fletcher Building Limited

FY23 summary

Solid Group EBIT and EBIT margin performance overall

Ongoing

Performance

& Growth

• FY23 performance
• • EBIT $798m, up 6% vs FY22
  • EBIT margin 9.4%, good performance in a slowing market
  • Net earnings $235m, includes flagged construction provisions of $255m
  • ROFE 17.1%, balance sheet strong, solid FY23 trading cash flows of $475m
  • FY23 final dividend of 16.0 cents per share, fully imputed; total FY23 dividends 34.0 cents per share
• Actively positioning for growth in the medium term
• • Total investment programme $800m+ across FY23-26, of which $308m deployed in FY23
  • Programme includes Waipapa Timber and Tumu acquisitions, plus organic investments in Laminex wood panels, Comfortech, PlaceMakers frame & truss, and circular economy, targeting $120m+ full run-rate EBIT growth
• Cost base and working capital positioned for a softer FY24 to ensure robust margins and cashflows

Page 4 | Fletcher Building Limited Full Year Results Presentation | © August 2023

Note: EBIT, EBIT margin and ROFE are before significant items

FY23 results at a glance

Strong earnings & margin uplift driven by materials & distribution divisions despite softer market & NZ weather events

Revenue ($b)

8.5	8.5
FY22	FY23

EBIT Margin (%)1

8.9%	9.4%
FY22	FY23

	EBIT1 ($m)
756	798

FY22	FY23
ROFE1,2 ($m)
19.3%	17.1%
FY22	FY23

FY23 trading highlights

• Materials & distribution divisions EBIT up 18% YoY despite market volumes 5-7%lower in FY23 vs 2H22 peak, effective pricing to recover 6-7%p.a. input cost inflation. Significant improvement in Australia, EBIT margin 6.0%
• Resi & Devt house sales solid in a challenging NZ housing market, margins lower as sales prices compressed. Business remains well- positioned with homes at lower price points
• Construction (ex. NZICC $255m provision) flat FY23 performance and good-quality order book in place for go-forward business
• Group ROFE 17.1%

Page 5 | Fletcher Building Limited Full Year Results Presentation | © August 2023

1. Before significant items
2. Return on Funds Employed (ROFE) is EBIT excluding significant items to average funds (net debt and equity less deferred tax asset)

Note: Measures before significant items are non-GAAP measures used by management to assess the performance of the business & have been derived from Fletcher Building Limited's financial statements for the period ended 30 June 2023. Details of significant items can be found in note 2.2 of the financial statements