FLETCHER BUILDING LIMITED — Interim / Quarterly Report 2008

Feb 12, 2008

Appendix 4D (rule 4.2A.3) ASX - Half Year Report

Appendix 4D (rule 4.2A.3)

Half Year Report

Fletcher Building Limited

Half Year ended 31 December 2007

ARBN - 002 232 368

Preliminary half year report on results (including the results for the previous corresponding half year) in accordance with Listing Rule 4.2A.3

The amounts as presented have been prepared in a manner which complies with New Zealand accounting standards which comply with International Financial Reporting Standards (NZ IFRS) and give a true and fair view of the matters to which the report relates and are based on unaudited accounts.

The Listed Issuer (Fletcher Building Limited) has a formally constituted Audit Committee of the Board of Directors.

Results for Announcement to the Market
				NZ$million
2.1 Revenues from ordinary activities	Up	19.0%	to	3,547
2.2 Profit (loss) from ordinary activities after
tax attributable to members	Up	21.8%	to	235
2.3 Net Profit (loss) from ordinary activities after tax
attributable to members	Up	21.8%	to	235
2.4 Dividends (distributions)			Amount	Franked amount
			per security	per security
Interim dividend, payable 10 April 2008			NZ24.00 cps	AUS nil cps
Tax credits of NZ 11.8209 cps are attached to the dividend from the current year.
Non New Zealand resident shareholders can benefit from the partial refund of the New Zealand tax credits as outlined
in the attached press release.
2.5 Record date for determining entitlement to the dividend:			21 March 2008

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Appendix 4D (rule 4.2A.3) ASX - Half Year Report

2.6 Statement of Earnings

Refer to attachment.

2.7 Balance Sheet

Refer to attachment.

2.8 Statement of Cash Flows

Refer to attachment.

2.9 Statement of Movements in Equity

Refer to attachment.

2.10 Notes to the Accounts

Refer to attachment.

3. Net Tangible Assets per security

Dec 2007 Dec 2006 Net tangible assets per ordinary security (NZ$) 2.59 2.43 4. Control of Entities gained or lost during period Control gained: Name of subsidiary or group of subsidiaries Formica Corporation plus other minor subsidiaries Contribution to net profit for the period attributable to members Refer to attached accounts Date from which such contribution has been calculated Refer to attached accounts Control Lost: Name of subsidiary or group of subsidiaries None Contribution to net profit for the period attributable to members (excluding unusual items) Date to which such contribution has been calculated Contribution to net profit for the period attributable to members tax for the previous corresponding Full Year 5. Dividends Amount per Franked amount per security per security Interim dividend, payable 10 April 2008 NZ24.00 cps AUS nil cps Tax credits of NZ 11.8209 cps are attached to the dividend from the current year. Non New Zealand resident shareholders can benefit from the partial refund of the New Zealand tax credits as outlined in the attached press release. 2.5 Record date for determining entitlement to the dividend: 21 March 2008

6. Dividend Reinvestment Plan

Refer Press Release.

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Appendix 4D (rule 4.2A.3) ASX - Half Year Report

7. Associates

Fletcher Building's Share of Associates: Carrying amount at the beginning of the period Acquisitions during the period Advances to associates during the period Equity accounted earnings of associates Dividends from associates Foreign currency translation movement to reserves Carrying amount at the end of the period	Dec 2007	Dec 2006
	NZ$million	NZ$million
	123 55 2 17 (12) 3	113 1 15 (1) (8)
	188	120

Fletcher Building's Share of Associates:

Material Interests in Associates

Fletcher Building has an interest (that is material to it) in the following associates:

Name of Associates	Percentage of ownership interest (ordinary shares, units, etc) held at end of halfyear	Percentage of ownership interest (ordinary shares, units, etc) held at end of halfyear	Contribution to Operating Profit and Extraordinary Items after Taxation	Contribution to Operating Profit and Extraordinary Items after Taxation
	Dec 2007	Dec 2006	Dec 2007	Dec 2006
			NZ$million	NZ$million
Equity Accounted Associates Sims Pacific Metals Laminex associates -Wespine and Dyno Homapal Miscellaneous	50.0% 50.0% 50.0%	50.0% 50.0%	Equity Accounted	Equity Accounted
			5 5 4 3	8 5 2
Total			17	15
Other Material Interests NIL
Total			17	15

8. The financial information in this report has been prepared in accordance with NZ standards that comply with International Financial Reporting Standards.

9. Other Significant information to assess entity's financial performance and financial position

Refer Press Release.

10. Commentary on results for the period.

Refer Press Release.

11. Details of basic and diluted EPS Basic EPS Diluted EPS	Dec 2007	Dec 2006
	NZ cents	NZ cents
	47.0 46.1	41.1 40.4

Diluted net earnings per share uses the weighted average number of shares used for basic net earnings per share, adjusted for dilutive securities. Capital notes and options are convertible into the Company's shares, and are therefore considered dilutive securities for diluted net earnings per share.

Numerator
Net earnings	235	193
Numerator for basic earnings per share	235	193
Dilutive capital notes distribution	10	11
Numerator for diluted net earningsper share	245	204
Denominator (millions of shares)
Denominator for basic net earnings per share	500	470
Conversion of dilutive capital notes	32	35
Denominator for diluted net earningsper share	532	505

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Appendix 4D (rule 4.2A.3) ASX - Half Year Report

12. Returns to Shareholders including distributions and buy backs.

Refer to items 5& 6 for details of dividend distributions. There were no other distributions in the current or prior period.

13. Segment results

Refer to attachment and press release for industry segment information.

Geographical

Geographical
NZ$ million	Operating Revenue byorigin	EBIT
New Zealand Australia North America Asia Europe Other Total	1,845 1,071 245 106 228 52	243 121 3 12 9 6
	3,547	394

14. Any other factors which have affected the results in the period, or which are likely to affect results in the future . Refer to press release.

15. This report is based on unaudited accounts.

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Earnings Statement (Unaudited)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

FLETCHER BUILDING GROUP

	SIX MONTHS	YEAR ENDED	SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
Sales	3,547	5,926	2,980
Cost ofgoods sold	(2,636)	(4,446)	(2,234)
Gross margin	911	1,480	746
Selling and marketing expenses	(313)	(428)	(218)
Administration expenses	(238)	(396)	(205)
Share of profits of associates	17	28	15
Other investment income	1
Other gains/(losses)	17	15	3
Unusual items		5
Amortisation of intangibles	(1)	(1)	(1)
Operating earnings (EBIT)	394	703	340
Funding costs	(67)	(87)	(45)
Earnings before taxation	327	616	295
Taxationexpense	(83)	(113)	(92)
Earnings after taxation	244	503	203
Earnings attributable tominorityinterests	(9)	(19)	(10)
Net earnings attributable to the shareholders	235	484	193
Net earnings per share (cents)
Basic	47.0	101.9	41.1
Basic (excluding unusuals)	47.0	84.0	41.1
Diluted	46.1	99.8	40.4
Weighted average number of shares outstanding (millions
of shares)
Basic	500	475	470
Diluted	532	505	505
Dividends declared pershare (cents)	24.0	45.0	22.0

The accompanying notes form part of and are to be read in conjunction with these financial statements.

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Statement of Movements in Equity (Unaudited) FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

FLETCHER BUILDING GROUP

	SIX MONTHS	YEAR ENDED	SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
Total equity
At the beginning of the period	2,296	1,800	1,800
Movement in the cashflow hedge reserve	7	(9)	10
Movementincurrency translation reserve	**32 **	(133)	(107)
Income and expensesrecognised directlyinequity	39	(142)	(97)
Net earnings - parent interest	235	484	193
Net earnings- minorityinterest	9	19	10
Net earnings	244	503	203
Total recognised income and expenses for the period	283	361	106
Movement in minority equity	(12)	(18)	(11)
Movement in reported capital	19	357	20
Dividends	(115)	(202)	(99)
Less movement in shares held under the
treasury stock method	(1)	(2)	(3)
Total equity	2,470	2,296	1,813

The accompanying notes form part of and are to be read in conjunction with these financial statements.

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Balance Sheet (Unaudited)

AS AT 31 DECEMBER 2007

	FLETCHER BUILDING GROUP	FLETCHER BUILDING GROUP
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
Assets
Current assets:
Cash and liquid deposits	139	332	57
Current tax asset		19
Debtors	1,078	978	922
Stocks	1,041	745	746
Total current assets	2,258	2,074	1,725
Non current assets:
Fixed assets	1,930	1,515	1,534
Goodwill	812	393	388
Intangibles	321	236	236
Investments in associates	188	123	120
Investments - other	20	18	15
Deferred taxationasset	39	74	66
Total noncurrent assets	3,310	2,359	2,359
Total assets	5,568	4,433	4,084
Liabilities
Current liabilities:
Short-term loans	20	4	18
Provisions	75	54	57
Creditors and accruals	919	818	799
Current tax liability	4		41
Contracts	111	137	109
Capital notes	113	113
Termdebt	**202 **	61	57
Total current liabilities	1,444	1,187	1,081
Non current liabilities:
Provisions	19	10	7
Creditors and accruals	64	61	62
Pension liability	66
Deferred taxation liability	73	71	69
Capital notes	236	236	350
Termdebt	1,196	572	702
Total noncurrentliabilities	**1,654 **	950	1,190
Total liabilities	3,098	2,137	2,271
Equity
Reported capital	1,343	1,325	987
Revenue reserves	1,113	961	773
Other reserves	(28)	(35)	10
Shareholders' funds	2,428	2,251	1,770
Minority equity	42	45	43
Total equity	2,470	2,296	1,813
Total liabilities and equity	5,568	4,433	4,084

The accompanying notes form part of and are to be read in conjunction with these financial statements.

.

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Statement of Cashflows (Unaudited)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

FLETCHER BUILDING GROUP

	SIX MONTHS	YEAR ENDED	SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
Cashflow from operating activities
Receipts from customers	3,631	5,862	3,011
Dividends received	12	12
Interestreceived	2	3	1
Total received	3,645	5,877	3,012
Payments to suppliers, employees and other	3,282	5,200	2,724
Interest paid	68	91	43
Income taxpaid	50	103	18
Total applied	3,400	5,394	2,785
Net cash from operating activities	245	483	227
Cashflow from investing activities
Sale of fixed assets	37	32	6
Sale of investments			1
Insurance proceedsfrom loss ofplant		63
Total received	37	95	7
Purchase of fixed assets	125	249	115
Purchase of investments	15	3
Purchase of subsidiaries	990	97	83
(Cash)/net debtinsubsidiaries acquired	2	(3)	(3)
Total applied	1,132	346	195
Net cash from investing activities	(1,095)	(251)	(188)
Cashflow from financing activities
Net debt drawdowns / (settlements)	770	(21)	118
Issue of shares		321
Total received	770	300	118
Repurchase of capital notes		50	50
Distribution to minority shareholders	18	26	16
Dividends	96	169	80
Totalapplied	114	245	146
Net cash from financing activities	656	55	(28)
Net movement in cash held	(194)	287	11
Add opening cash and liquid deposits	332	49	49
Effect ofexchangerate changes on net cash	1	(4)	(3)
Closing cash and liquid deposits	139	332	57

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Statement of Cashflows (Unaudited)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

Analysis of subsidiaries acquired[(1)]

FLETCHER BUILDING GROUP

	SIX MONTHS	YEAR ENDED	SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
Analysis of subsidiaries acquired(1)
Fixed assets	379	3	3
Goodwill on acquisition	418	74	63
Less contingent consideration	(32)	(7)	6
Intangibles	81	9
Investments	45		(2)
Tax assets	(43)	(3)	20
Current assets	387	24	3
Minority interests	(1)
Cash in subsidiaries	21	3	(7)
Debt in subsidiaries	(24)
Pension liabilities	(71)
Non current liabilities	(8)
Current liabilities	(162)	(6)	(6)
Cashpaid to date for subsidiaries acquired	990	97	80

The Formica Corporation group was acquired on 2 July 2007, the Fair Dinkum Homes and Sheds group on 3 August 2007 and the Cameron Quarries group on 5 October 2007.

During the year ended 30 June 2007, the Maddren Building centres were acquired on 15 November 2006, the Forman Insulation business was acquired on 1 December 2006 and Eziform Sheet Metal was acquired on 1 May 2007 for a total consideration of $97 million.

The accompanying notes form part of and are to be read in conjunction with these financial statements.

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Reconciliation of Net Earnings to Net Cash from Operating Activities (Unaudited)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

FLETCHER BUILDING GROUP

	SIX MONTHS	YEAR ENDED	SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
Cash was received from:
Net earnings	235	484	193
Earnings attributable tominorityinterests	9	19	10
	244	503	203
Adjustment for items not involving cash:
Depreciation, depletions, amortisation and provisions	78	163	47
Taxation	33	10	74
Non cash adjustments	111	173	121
Cashflow from operations(1)	355	676	324
Less (gain) /loss ondisposalofaffiliates andfixed assets	(18)	(52)
Cashflow from operations before net working capital movements	337	624	324
Networking capital movements	(92)	(141)	(97)
Net cash from operating activities (2)	245	483	227

(1) Includes loss on disposal of affiliates and fixed assets. (2) As per the statement of cashflows.

The accompanying notes form part of and are to be read in conjunction with these financial statements.

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FLETCHER BUILDING FINANCIAL STATEMENTS

Notes to the financial statements

1 Basis of presentation The financial statements presented are those of Fletcher Building Limited and its subsidiaries (the "group"). Fletcher Building Limited is a company domiciled in New Zealand, is registered under the Companies Act 1993, and is an issuer in terms of the Securities Act 1978 and the Financial Reporting Act 1993. The financial statements have been prepared in accordance with NZ IAS 34 Interim Financial Reporting.

2 Changes in accounting policies

The International Accounting Standards Board has issued a number of other standards, amendments and interpretations which are not yet effective. The group has not yet applied these in preparing these interim financial statements although the application of these standards, amendments and interpretations would require further disclosures, but is not expected to have a material impact on the group's results.

There have been no changes in accounting policy in the six months ended 31 December 2007, however certain comparatives have been restated to conform with the current period's presentation.

3 Contingencies and commitments

Provision has been made in the ordinary course of business for all known and probable future claims but not for such claims as cannot presently be reliably measured. With the acquisition of Formica Corporation there has been an increase in capital expenditure, lease commitments, contingent liabilities and contingent assets to that disclosed in the 2007 annual report. However these are in the ordinary course of business and are not significant.

4 Other gains and losses

Included within other gains and losses of $17 million is a profit of $16 million on the sale of land from the disposal of Stresscrete.

5 Acquisitions

The Formica Corporation group was acquired on 2 July 2007, the Fair Dinkum Homes and Sheds group on 3 August 2007 and the Cameron Quarries group on 5 October 2007. A formal fair value exercise is being undertaken for all the acquisitions. The fair values will be updated more accurately in the financial statements for the year ended 30 June 2008, following the receipt of independent valuations. The estimated fair values of the assets and liabilities described below may therefore change upon completion of the fair value exercise. Goodwill on acquisition represents the value in the companies attributable to their expected profitability and the significant cost synergies to be achieved.

The following are the estimated values recognised in the interim financial statements:

Formica Corporation

The Formica Corporation was acquired for US$700 million, with additional payments of up to US$50 million contingent on performance milestones.

	NZ$M
Purchase price	921
Working capital adjustment	(2)
Debt acquired	24
Less cash acquired	(21)
Contingent purchase price based on performance milestones	65
Less indemnity reimbursement expected from vendor	(26)
Costs directlyattributable to the acquisition	21
Totalpurchaseprice	982.1338377

The following are the estimated values recognised in the interim financial statements:

	VENDORS	FAIR VALUE	FAIR VALUE
	BOOK VALUE	ADJUSTMENT
	NZ$M	NZ$M	NZ$M
Fixed assets	271	96	367
Goodwill on acquisition		385	385
Intangibles	81		81
Investments	45		45
Tax assets	(35)	(5)	(40)
Current assets	386		386
Pension liability	(94)	23	(71)
Minority interests	(1)		(1)
Non current liabilities	(8)		(8)
Current liabilities	(162)		(162)
Fair value of net assets	483	499	**982 **
Less contingent purchase price owing			(58)
Plus indemnity reimbursement expected from vendor			26
Less debt acquired			(24)
Plus cash acquired			21
Cashpaid to datefor Formica Corporation			947

In the period to 31 December 2007 the Formica Corporation contributed sales of $537 million and operating earnings of $21 million.

Fair Dinkum Homes and Sheds and Cameron Quarries

Fair Dinkum Homes and Sheds and the Cameron Quarries were acquired for NZ$43 million.

	VENDORS	FAIR VALUE	FAIR VALUE
	BOOK VALUE	ADJUSTMENT
	NZ$M	NZ$M	NZ$M
Fixed assets	12		12
Goodwill on acquisition		33	33
Tax assets	(3)		(3)
Current assets	1		1
Cashpaid to dateforsubsidiaries acquired	10	33	43

In the period to 31 December 2007 these acquired subsidiaries contributed sales of $5.5 million and operating earnings of $1.8 million. If the acquisitions had occurred on 1 July 2007, it is estimated that the contribution to group sales would have been $7.3 million and operating earnings of $2.1 million.

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FLETCHER BUILDING GROUP

6	SIX MONTHS YEAR ENDED SIX MONTHS DEC 2007 JUNE 2007 DEC 2006 NZ$M NZ$M NZ$M Taxation expense Earnings before taxation: 327 616 295
	Taxation at 33 cents per dollar 108 203 97 Adjusted for: Benefit of lower tax rate in overseas jurisdictions (7) (5) (3) Non assessable income (7) (7) (4) Non deductible expenses 1 4 3 Tax benefit arising from the election of the branch equivalent tax account (70) Non assessable income arising from insurance settlement (16) Impact of tax rate change 4 Otherpermanent differences (12) (1)
	83 113 92
	Tax on operating profits pre unusual items 83 193 92 Tax benefit of unusual items (10) Tax benefit arisingfrom the election of the branch equivalent tax account (70)
	83 113 92

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FINANCIAL HIGHLIGHTS (UNAUDITED)

FLETCHER BUILDING GROUP

	SIX MONTHS	YEAR ENDED SIX MONTHS	YEAR ENDED SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
Return on average funds employed (%)	20.4	24.8	24.5
Return on average equity (%)	19.6	26.0	21.8
Earnings per share (cents) excluding unusuals	47.0	84.0	41.1
Dividends per share (cents)	24	45	22
Gearing (%)	39.7	22.2	37.1
Interest cover (times)	7.3	9.8	9.3

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BREAKDOWN OF FINANCIAL PERFORMANCE (UNAUDITED)

	SIX MONTHS	YEAR ENDED	SIX MONTHS
	DEC 2007	JUNE 2007	DEC 2006
	NZ$M	NZ$M	NZ$M
RESULTS FOR THE PERIOD'S PERFORMANCE
Sales	3,547	5,926	2,980
Operating earnings (EBIT)	394	703	340
Unusual items included in Operating Earnings above		5
Cashflow from operations	245	483	227
Net earnings	235	484	193
SALES
Building Products	376	697	344
Steel	611	1,161	602
Distribution	565	1,064	518
Infrastructure	921	1,944	962
Laminates & Panels	1,074	1,058	553
Other	0	2	1
Total	3,547	5,926	2,980
OPERATING EARNINGS
Building Products	74	135	72
Steel	47	71	46
Distribution	42	80	39
Infrastructure	145	271	122
Laminates & Panels	91	151	65
Other	(5)	(5)	(4)
Total	394	703	340
TOTAL ASSETS
Building Products	725	687	698
Steel	733	689	675
Distribution	285	271	281
Infrastructure	1,312	1,183	1,247
Laminates & Panels	2,362	981	1,052
Other	151	622	131
Total	5,568	4,433	4,084

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