FLETCHER BUILDING LIMITED — Capital/Financing Update 2015

Aug 18, 2015

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News Release

STOCK EXCHANGE LISTINGS: NEW ZEALAND (FBU), AUSTRALIA (FBU).

Fletcher Building to sell Rocla Quarry Products business to Hanson Construction Materials

Auckland – 19[th] August 2015

Fletcher Building Limited today announced it has entered into a conditional agreement to sell the operations of Rocla Quarry Products (“RQP”) to Hanson Construction Materials Pty Limited (“Hanson”) in a transaction valued at approximately A$203 million. The sale follows a competitive tender process for the business.

Fletcher Building will continue to own and operate RQP until completion of the transaction, which is expected to be by the end of January 2016.

The transaction is conditional upon a number of matters, including clearance from Australian Competition and Consumer Commission. Upon completion, Fletcher Building expects to record a pre-tax profit of approximately A$100 million, reflecting the gain on sale of assets, partly offset by transaction costs and adjustments to asset carrying values.

Fletcher Building Chief Executive Officer Mark Adamson said that the sale of Rocla Quarry Products underlines Fletcher Building’s commitment to deliver improved shareholder value through active management of its portfolio.

“Rocla Quarry Products is a great business with a proud heritage, but it is not a strategic part of our Australian portfolio. Given its quarry positions around Australia, it naturally has a higher value to an integrated cement and concrete operator than as a stand-alone business”, Mr Adamson said.

The transaction does not affect the ownership of Fletcher Building’s Rocla Pipes & Concrete Products or Winstone Aggregates businesses, which remain core elements of the Fletcher Building portfolio.

Credit Suisse and First NZ Capital are acting as financial advisors to Fletcher Building, Ashurst is acting as legal advisor.

Further details of the transaction are outlined in the Appendix.

For further information contact:

Philip King Group General Manager, Investor Relations & Capital Markets Phone: + 64 9 525 9043 Mobile: + 64 27 444 0203

Appendix –Transaction Details

Appendix –Transaction De	Appendix –Transaction De	Appendix –Transaction De	tails
	Description of assets	Th	e entire business and a	ssets of Rocla Quarry	Products
		inc-	luding:Shares in the Mittago	ng Sands joint venture	NSW);
		-	Shares in the Mt Marr	ow joint venture (Quee	nsland)
		Ex	cludes discontinued sit	s and Reional Resou	ces North
		W	est Joint Venture	g
	Amount, compositionand method of	Th	e purchase price for the	assets is A$203 million.
	payment ofconsideration	Tful	e purchase price for thl on completion of the s	RQP business assetsale. The purchase price	will be paid infor the JV
		sh	ares will be paid on com	pletion of the transfer	of those
		sh	ares in accordance with	the pre-emptive rights	processes.
		In	addition, there will be a	n adjustment for workin	g capital on
		co	mpletion of the sale.
	Conditions	The transaction is conditional on:-Foreign Investment Review Board approval-ACCC statement of no objection

Ends