FLETCHER BUILDING LIMITED — Investor Presentation 2012

May 2, 2012

INVESTOR PRESENTATION

May 2012

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Victoria Park Tunnel , Auckland

Investor Presentation | Fletcher Building | © May 2012

| Page 2

Disclaimer

This presentation contains not only a review of operations, but also some forward looking statements about Fletcher Building and the environment in which the company operates. Because these statements are forward looking, Fletcher Building’s actual results could differ materially. Media releases, management commentary and analysts presentations, including those relating to the February 2012 Half Year results announcement, are all available on the company’s website and contain additional information about matters which could cause Fletcher Building’s performance to differ from any forward looking statements in this presentation. Please read this presentation in the wider context of material previously published by Fletcher Building.

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Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 3

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Investor Presentation
COMPANY &
MARKET
OVERVIEW
Christchurch , August 2011
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Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 4

Fletcher Building at a glance

Revenue – 6 months to 31 December: Market Capitalisation: Employees:

Shareholders: (as at 31 December 2011)

NZ$4.5 billion NZ$4.3 billion 20,000

Revenues: (as at 31 December 2011)

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7% [5% ] 11%
18% 43% New Zealand 41%
Australia
New Zealand
North America
Australia
Europe
Asia 48% Rest of World
27%
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Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 5

Fletcher Building – key listing information

• Listed on the New Zealand and Australian stock exchanges

New Zealand

• Second largest listed company by market capitalisation on the NZX

Australia

• Ranked #59 on the ASX

• Fletcher Building gained inclusion in the S&P/ASX 200 index in March 2011

US

• Level I sponsored American Depository Receipt (ADR) programme launched December 2010

• Citi act as depository bank

• Ticker: FCREY CUSIP: 339305302

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Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 6

Market leading businesses

Building Products	Concrete	Construction	Crane	Distribution	Laminates & Panels	Steel
Plasterboard	Cement	Construction	Pipelines –	Building	The Laminex	Coated Steel
Insulation	Readymix		Manufacture &	Materials	Group
Roof Tiles	Aggregates	General	Distribution	Distribution	MDF	Long Steel:
Single Businesses: Aluminium Sinkware	Concrete Products Concrete Pipes Quarries	Construction Infrastructure Projects Residential house development	Trade Distribution Australia and NZ Copper Tube – Manufacture &	 59 PlaceMakers stores	Particleboard LPM HPL Formica HPL	Reinforcing bar, mesh and wire Scrap Distribution
			Distribution

Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 7

Record lows for new residential consents in New Zealand, and significant residential slowdown in Australia

Building Consents	Dec 2011 12 months Dec 2010 12 months Dec 2009 12 months 11/10 %Mvmt
New Zealand
Residential Consents	13,662 15,602 14,425 -12 4,521 4,817 4,895 -6 7,744 6,664 6,308 +16 Source: Statistics NZ, Infometrics
Non Res WPIP ($m)
Infrastructure WPIP ($m)
Australia
Residential Consents	149,076 176,564 146,492 -16 32.7 37.7 32.0 -13 101 77.6 77.2 +30 Source: ABS, BIS Shrapnel
Non Res WPIP (A$Bn)
Infrastructure WPIP (A$Bn)
US
Residential Construction Starts	609,000 600,000 570,000 +2 60.4 51.1 56.9 +18 97.1 110.8 112.2 -12
Commercial & Industrial (US$Bn)
Institutional (US$Bn)

Source: McGraw Hill

Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 8

New Zealand construction activity levels 2005-2011

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Total Residential Consents
Years to December
26,023 25,952 25,590
18,456
15,602
14,425
13,662
2005 2006 2007 2008 2009 2010 2011
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Total Construction NZ – NZ$m Years to December

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5,230 5,982
4,141 [ 4,595 ]
6,308 [ 6,664 ] 7,744
5,032
4,971 [ 5,096 ] 5,220
4,896 [ 4,817 ]
4,521
7,417 [ 7,639 8,533 ] 7,324
5,875 [ 6,258 ] 5,403
2005 2006 2007 2008 2009 2010 2011
Residential Non-residential Infrastructure
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Investor Presentation | Fletcher Building | © May 2012

Company & Market Overview | Page 9

Australian construction activity levels 2005-2011

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Residential Consents Australia
Years to December
176,564
157,505 159,590
153,949
148,155 146,492 149,076
2005 2006 2007 2008 2009 2010 2011
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Investor Presentation | Fletcher Building | © May 2012

Strategy | Page 10

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Investor Presentation
STRATEGY
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Formica for Tinderbox , UK

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Investor Presentation | Fletcher Building | © May 2012

Strategy | Page 11

Strategy

Improved earnings reliability through geographic and end-market diversification

Decentralised business model

Portfolio approach that creates value through application of proven operating model

Target attractive industry positions in Australia and NZ

Further opportunities to invest in Australia and NZ will be pursued, along with growth in Formica Asia

Investor Presentation | Fletcher Building | © May 2012

Strategy | Page 12

Fletcher Building has a vertically integrated value chain

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Pipes & Laminates Building Other
Steel Concrete
Plumbing & Panels Products Manufacturers
Dedicated Shared Other
Construction
Distribution Distribution Distribution
Markets
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Half Year 2012 Financial Results | Page 13

Investor Presentation | Fletcher Building | © May 2012

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Investor Presentation
HALF YEAR 2012
FINANCIAL
RESULTS
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The Cloud , Auckland waterfront

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Half Year 2012 Financial Results | Page 14

Investor Presentation | Fletcher Building | © May 2012

Weak residential construction markets in New Zealand and Australia impacted earnings

	Dec 2011	Dec 2010
NZ$m	6 months	6 months	% Change
Sales	4,509	3,468	+30
EBIT	256	285	-10
EBITDA before unusual items	393	381	+3
EBIT before unusual items	277	285	-3
Net earnings before unusual items	159	166	-4
Unusual items after tax	15	0
Net earnings	144	166	-13
EPS before unusual items - cps	23.4	27.3	-14
Dividend - cps	17.0	16.0	+6

Half Year 2012 Financial Results | Page 15

Investor Presentation | Fletcher Building | © May 2012

Weaker market conditions impacted all divisions

EBIT before unusuals NZ$million[1 ]

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80
63
60
56 57
53
43 43
33
25 25 24
15
0
Building Products Crane Distribution Concrete Construction Laminates & Steel
Panels
6 months ended
Dec-11 Dec-10
1. Earnings before interest, tax and unusual items
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Half Year 2012 Financial Results | Page 16

Investor Presentation | Fletcher Building | © May 2012

Cashflow from operations impacted by working capital movements, higher funding costs and cash tax payments

	Dec 2011 6 months Dec 2010 6 months % Change 372 381 -2 (73) (51) +43 (51) (33) +55 (16) (17) -6 127 (174) (41) (15) (103) 71 (114) (27) (8) (78) +79 +53 +52 +88 +32 129 202 -36
EBITDA
Funding costs
Cash tax paid
Other + non cash
Working capital movements: - Debtors - Creditors - Stock - Other
Cashflow from operations

Investor Presentation | Fletcher Building | © May 2012

Half Year 2012 Financial Results | Page 17

Key ratios

Total Shareholder Return (TSR) Percentage

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42
24
14 14
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Dec-11
-26
-43
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Debt/Debt Plus Equity Percentage

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40
34 35
31
27
22
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Dec-11
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Return on Average Funds Percentage²

Gross Interest Cover³ Times

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25
19
12 13 13
10
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Dec-11
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8.0
5.6
4.9 5.1
4.0 3.8
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Dec-11
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1. Net earnings / average equity

2. Earnings before interest, tax, and unusual items / average funds

3. Earnings before interest, tax and unusual items / total interest paid

Half Year 2012 Financial Results | Page 18

Investor Presentation | Fletcher Building | © May 2012

Full year forecast capital expenditure includes $100m in acquisitions

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397
Acquisitions
Dec 11 Dec 10
FY12
Growth
6 mths 6 mths [% ∆ ] Forecast
100
Stay in business
¹
307
Stay-in-business 101 74 +36 227
289
70 Growth¹ 22 24 -8 70
237
211 206 205 Acquisitions² 31 52 -40 100
191
Total 154 150 +3 397
227
Depreciation 116 96 +21 239
2009 2010 2011 2012
Capital Expenditure Depreciation
Forecast as at 1. Forecast includes investment in Homapal & new Formica
February 2012 plant in China
1. Excludes acquisition of shares in Crane Group Ltd 2. Excludes Crane in 1H11
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Half Year 2012 Financial Results | Page 19

Investor Presentation | Fletcher Building | © May 2012

Debt maturity profile

Funding and Maturity Profile February 2012

US$300m private placement to US investors completed post 31 December 2011.

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200
162 298 200
14
299
275
233
149 170 157 [201 182 ] 157
107 [141 ]
2012 2013 2014 2015 2016 2017 2018 2020 2022 2024 2027
NZ$m
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Key credit statistics following US private placement:

• Undrawn credit lines of $583 million and $182 million cash on hand

• Average maturity of debt is 5 years

• Average interest rate on debt is 6.7%.

• 67% of borrowings are at fixed rates.

Additional A$120m 15 year private placement to Japanese investors completed February 2012.

June Years

Debt - Drawn Commited Undrawn Debt Facilities

Half Year 2012 Financial Results | Page 20

Investor Presentation | Fletcher Building | © May 2012

Canterbury update

Estimates of earthquake damage (October 2011) Repair Timeframes

Sector	NZ$B
Residential	13.0
Commercial	4.0
Infrastructure	3.0
	20.0
Source: NZ Treasury October 2011

Sector	Years
Residential – new build 5 Residential – repair 4 Commercial 15 Infrastructure 5 Source: Canterbury Development Corp.

Fletcher EQR:

Project Management of 100,000 residential repairs for the Earthquake Commission

Progress as at 10 April 2012:

• 40,000 urgent repairs completed

• 12,500 full scope repairs completed

• 1,000+ firms contracted, 12,600 contractors inducted

• Currently paying $700M (annualised)

• Targets for repairs to 100,000 homes agreed with Earthquake Commission:

• 80% of homes in managed repair programme completed by 2014

• Houses with $50,000+ of damage: aim to have repairs completed by mid-2013

Half Year 2012 Financial Results | Page 21

Investor Presentation | Fletcher Building | © May 2012

Canterbury update

Residential:

11,000 new homes to be built including 7,000 “Red Zone” properties 16,500 re-instatements

Commercial:

900 demolitions completed, with a further 250 buildings to come down 250 buildings awaiting engineering assessments

12 new consents for low rise commercial and industrial buildings in CBD and city fringe

Infrastructure:

Alliance of 5 construction companies (‘SCIRT’) Scope includes roads, potable and waste water pipes, footpaths, retaining walls, bridges Total work c. $2.2B

Half Year 2012 Financial Results | Page 22

Investor Presentation | Fletcher Building | © May 2012

Christchurch before the earthquakes

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Half Year 2012 Financial Results | Page 23

Investor Presentation | Fletcher Building | © May 2012

Christchurch City October 2011

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Half Year 2012 Financial Results | Page 24

Investor Presentation | Fletcher Building | © May 2012

New Zealand commercial and infrastructure construction outlook

Construction backlog of $1.3 billion

Waterview motorway/tunnel project $398m: construction activity to get underway in second half of calendar 2012

Wiri prison PPP – approx $300m construction value (preferred bidder status: not included in backlog figure)

Margins are tight in subdued commercial building activity Preferred contractor status on two contracts totalling $727m

Delayed starts, no impact until FY14 at earliest

Rebuilding Canterbury a key priority for government infrastructure expenditure

Half Year 2012 Financial Results | Page 25

Investor Presentation | Fletcher Building | © May 2012

Strategic issues

Laminex

• −Fall in domestic demand and high currency have impacted earnings performance in Australia and NZ.

• −$21m in pre-tax unusuals restructuring costs incurred in HY 2012.

• −Further review underway; goal is to achieve step change in cost base:

• Review encompasses go-to-market model and profitability of ancillary activities and products.

• −$40m to $50m in additional restructuring costs likely to be incurred in FY12.

Insulation

• −Strategic review of Australian insulation business being undertaken.

• −Australian market suffering from excess inventory, increased competition, reduced demand, as a result of sudden termination of government home insulation subsidy scheme.

• −High Australian dollar has undermined domestic manufacture of insulation material.

• −Outcome of strategic review may result in additional costs to improve business performance

Investor Presentation | Fletcher Building | © May 2012

Outlook | Page 26

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Half Year Results
OUTLOOK
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Investor Presentation | Fletcher Building | © May 2012

Outlook | Page 27

Outlook FY2012

New Zealand

• Conditions expected to remain challenging

• Modest uplift in housing consents in first half should lift activity in second half, but from low base

• Infrastructure spending lower due to timing of key projects

• Canterbury rebuild – gradual lift in activity forecast over calendar 2012, following set back of December 23[rd] earthquake.

Australia

• Downturn in residential and weak commercial construction activity likely to be prevail in second half

• Infrastructure sector expected to remain strong

Asia: Continued volume growth expected

North America: slight improvement in conditions

Europe: depressed conditions will continue to impact volumes

Investor Presentation | Fletcher Building | © May 2012

Outlook | Page 28

Financial outlook FY2012

Based on:

Current assessment of market conditions

Unaudited half year results

Net earnings before unusuals for the 2012 financial year are expected to be in the range of $310 million to $340 million

Performance will depend on macro-economic conditions and construction activity levels

Further restructuring charges of $40 to $50 million likely to be incurred in Laminex and will be reported as unusual item.

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 29

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Investor Presentation
APPENDIX
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Crane Copper Tube , Adelaide

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Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 30

Building Products

Division Overview

The Building Products division manufactures a broad range of building products. The divisions’ core plasterboard, insulation and metal roof tile businesses have market leading positions and respected brands.

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Summary Financials (NZ$M)
Revenue source FY11
798
771
66 [32 ]
739
95
325
697
692
141 148 174
106 114 111
Insulation Roof Tiles
Plasterboard Aluminium
2007 2008 2009 2010 2011
Sinkware
Revenue EBIT (excl unusuals)
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Business Description
Fletcher Insulation in Australia manufactures a
wide range of insulation and acoustic products.
Insulation
Tasman Insulation is New Zealand’s only domestic
manufacturer of glasswool insulation.
Winstone Wallboards is New Zealand’s sole
Plasterboard
manufacturer and leading supplier of plasterboard.
Global manufacturer of metal roof tiles with plants
Roof Tiles
in New Zealand, Malaysia, Hungary, and the USA.
Designs and manufactures aluminium windows and
Aluminium
door systems in New Zealand.
Australia’s only manufacturer of sinkware and
Sinkware
accessories.
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Key Brands
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Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 31

Building Products result

NZ$m	Dec 11 6 mths Dec 10 6 mths % ∆
Sales	355 371 -4
EBITDA	56 69 -19
EBIT	43 56 -23
Funds Employed	578 674 -14
EBITDA/sales %	15.8 18.6
EBIT/sales %	12.1 15.1
ROFE %	14.9 16.6

Plasterboard earnings lower due to weaker NZ residential market, but market share maintained.

Insulation earnings down 25% due to weaker demand in Australia and NZ and strong import competition.

−Strategic review of Insulation business

−Gain of $4m from sale of Tasman Access Floors.

Roof Tiles volumes up in the America’s, Africa and Asia, but down in New Zealand and Europe.

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 32

Division Overview

The Concrete division consists of a vertically integrated concrete business in New Zealand and concrete products businesses in Australia.

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Summary Financials (NZ$M)
Revenue source FY11
967
946
930
912
406
250
857 506
201
144
125
107
Concrete New
2007 2008 2009 2010 2011
Zealand
Revenue EBIT (excl unusuals) Concrete Australia
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Concrete

Business Description

Firth (NZ)

New Zealand’s leading national concrete company with approximately 70 plants throughout the country.

NZ’s largest cement manufacturer. Manufactures cement for readymix producers, concrete product manufacturers, building materials distributors, paving and construction contractors, and other major users.

Golden Bay Cement (NZ)

The largest pipeline systems supplier to New Zealand’s infrastructure market. 8 manufacturing facilities & 20 specialist pipeline systems sales centres. The company installs specialist pipeline products & solutions into municipal, roading, subdivision, environmental & rural projects.

Humes Pipelines (NZ)

New Zealand’s largest manufacturer and distributor of aggregates and sand to roading, ready mixed concrete and concrete product industries, and other building and civil engineering customers.

Winstone Aggregates (NZ)

Rocla Quarry (AUS)

Construction sands manufacturer supplying sands to the building & construction industries throughout Australia.

Key Brands

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Rocla Pipelines (AUS)

Leading Australian supplier of manufactured concrete infrastructure products to civil contractors, developers, local governments and other authorities.

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 33

Concrete result

NZ$m	NZ Concrete • Softer demand for aggregates and masonry products. • Readymix concrete and concrete pipe product volumes stable. • Cement volumes lower in both domestic and export markets, negatively impacted margins. Australia Concrete • Quarry revenues constant but earnings up on margin and product mix. • Volumes in the pipelines business up 5%. Dec 11 6 mths Dec 10 6 mths % ∆ 468 442 +6 91 87 +5 60 57 +5 1,052 1,026 +3 19.4 19.7 12.8 12.9 11.4 11.1
Sales
EBITDA
EBIT
Funds Employed
EBITDA/sales %
EBIT/sales %
ROFE %

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 34

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Construction

Division Overview

Business Description

A leading general constructor of commercial, retail, health, hospitality, education and government buildings. Work undertaken includes both main structures and commercial fitouts.

The Construction division comprises one of New Zealand’s largest general construction contractors Fletcher Construction, and Fletcher Residential, a residential home building business in New Zealand. Also in the division is Fletcher EQR, which is project managing residential earthquake repairs in Canterbury for the Earthquake Commission.

Building + Interiors

Earthquake Recovery is a project-specific division established to manage the $3+ billion repair process of residential homes that the Earthquake Commission is responsible for following the Canterbury earthquakes.

Earthquake Recovery Infrastructure South Pacific

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Summary Financials (NZ$M)
Revenue source FY11
1163
1122 1140
998
890
155
70
58 59 60
57
985
2007 2008 2009 2010 2011
Revenue EBIT
Construction Residential
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A leading general contractor operating in transport, energy, water and wastewater, with specialist business units focused on foundations, general infrastructure projects, piles and pipeline rehabilitation.

Undertakes a wide range of projects for local and foreign governments, aid agencies, religious organisations and commercial entities in the South Pacific

Residential

Land subdivision and home builder.

Key Brands

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 35

Construction result

NZ$m	Dec 11 6 mths Dec 10 6 mths % ∆
Sales	520 592 -12
EBITDA Total EBIT	30 25 38 33 -21 -24
Funds Employed	145 116 +25
EBITDA/sales %	5.8 6.4
EBIT/sales %	4.8 5.6
ROFE %	34.5 56.9

Several large projects completed during the period.

Tighter project margins due to subdued market.

Construction backlog of $1.3bn (as at April 2012).

Residential earnings up 33% due to strong sales in Stonefields subdivision in Auckland.

Funds employed increased due to residential land purchases.

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 36

Division Overview

Crane is the Australian leader in the manufacturing and distribution of plastic pipelines systems, plumbing and electrical supplies and non ferrous metal products in Australia and New Zealand. Previously a listed public company, the business was acquired by Fletcher Building in March 2011.

Summary Financials (A$M)

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Revenue source FY11:
291
519
286
927
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Pipelines Trade Distribution AUS Trade Distribution NZ Industrial Products

Crane

Iplex

Crane Distribution Australia

Crane Distribution NZ Industrial Products

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Business Description

A leading manufacturer and supplier of plastic pipeline systems in Australia & New Zealand

Includes Tradelink, a leading Australian business in plumbing supplies and bathroom solutions, and Hudson Building Supplies with a strong footprint in timber and building materials and branches across NSW & South East Queensland

Includes Corys Electrical, a leading New Zealand distributor of electrical products and services, and Mico, New Zealand’s leading supplier of plumbing and bathroom products and solutions.

Manufacturer of a wide range of plumbing tubes, and importer and distributor of stainless steel, aluminium and speciality metals, in Australia and New Zealand

Key Brands

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Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 37

Crane result

NZ$m	Dec 11 6 mths	Dec 11 6 mths Dec 10¹ 6 mths % ∆
	EBIT	Revenue
Pipelines	28	395 342 +15
Distribution - Australia - New Zealand	21 (1)	588 187 612 193 -4 -3
Industrial Products Unallocated/ Elimination	2 3	165 (106) 208 (95) -21
Total:	53	1,229 1,261 -3
Funds Employed	1,334
EBIT/Sales %	4.3
ROFE %	8.6

Increased pipeline sales to gas and mining offset weaker residential demand.

Distribution volumes down due to lower residential and commercial activity in Australia and New Zealand.

NZ distribution restructuring completed – 2 separate brands: Mico for plumbing, and Corys for electrical.

1. Dec 2010 figures are for comparative purposes only; Fletcher Building acquired Crane in March 2011

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 38

Distribution

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Division Overview

The Distribution division consists of the PlaceMakers business in New Zealand and supplies building materials to New Zealand’s commercial and residential construction markets. PlaceMakers represents an important distribution network for Fletcher Building Group products.

PlaceMakers

Business Description

Is a nationwide supplier of building materials to New Zealand’s commercial and residential markets. It operates 59 stores and 12 frame and truss manufacturing sites. The majority of stores are operated in a joint venture partnership with local owners/operators.

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Summary Financials (NZ$M)
1064 1083
883 878
856
80
73
38 39
30
2007 2008 2009 2010 2011
Revenue EBIT (excl unusuals)
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Key Brands

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Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 39

Distribution result

NZ$m	Dec 11 6 mths Dec 10 6 mths % ∆
Sales	402 446 -10
EBITDA	19 29 -34
EBIT	15 25 -40
Funds Employed	137 138 -1
EBITDA/sales %	4.7 6.5
EBIT/sales %	3.7 5.6
ROFE %	21.9 36.2

Sales decline of 10% due to subdued activity levels and continued disruption to Christchurch stores – consistent with consent data. Gross margin maintained despite increased competition in DIY and retail segments.

Trade segment mixed with decline in new building activity. Focus on cost control and distribution network footprint.

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 40

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Laminates & Panels

Division Overview

Business Description

The Laminates & Panels division comprises of the Australasian based woodpanels manufacturer and distributor Laminex, and a global high pressure laminates manufacturer, Formica.

Is the leading Australian and New Zealand manufacturer and distributor of decorative wood panels, particleboard, medium density fibreboard and other durable surfaces for use in residential and commercial applications. Laminex also distributes high pressure laminate and operates a high pressure laminate plant in Australia

The Laminex Group

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Summary Financials
Laminex Formica
1101 1077 1069
1055
1007 999
931
878
125
107 112
56 16 18 34 56
2008 2009 2010 2011 2008 2009 2010 2011
Revenue EBIT (excl unusuals) Revenue EBIT (excl unusuals)
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Formica manufactures and distributes high pressure decorative surface laminates with plants in North America, Europe and Asia. Formica’s products are used in both residential and commercial applications. The Formica brand is well recognised and highly respected globally. In markets where it has manufacturing facilities it either leads the market or holds the second largest share.

Formica

Key Brands

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 41

Laminates & Panels result

NZ$m	Dec 11 6 mths Dec 10 6 mths % ∆
Sales	939 1,001 -6
EBITDA¹
- Laminex¹	56 77 -27
- Formica	41 36 +14
Total EBITDA¹	97 113 -14
EBIT¹	63 80 -21
Funds Employed	1,830 1,721 +6
EBITDA/sales %	10.3 11.3
EBIT/sales %	6.7 8.0
ROFE %	6.8 9.3

Laminex

• Australian volumes of higher margin decorated board down due to fall in new housing starts and additions and alterations decline.

• NZ volumes down 12% year on year.

• • $21 m pre-tax unusual items incurred to date for restructuring costs

Formica

• 9% volume growth in Asia but earnings impacted by flooding in Thailand.

• North America revenues up 3% in local currency terms.

• Conditions in Europe remained weak.

1. Before unusual items

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 42

Formica: continued improvement in earnings due to volume growth in Asia and cost reduction measures

EBIT NZ$m	1H12	1H11	% Change
Asia	18	19	-5
North America	12	11	+9
Europe	2	1	+100
Corporate	(6)	(8)	-25
EBIT $NZ	26	23	+13

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 43

Division Overview

The Steel division operates a diversified portfolio of steel businesses across three business lines, primarily in Australia and New Zealand. Each business has a leading market position and widely recognised brands.

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Summary Financials (NZ$M)
1321 Revenue source FY11
1279
217
154
1214
1172
1161 193
101
80 82 83 804
2007 2008 2009 2010 2011 Coated Steel
Long Steel
Revenue EBIT (excl unusuals)
Distribution and Services
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Key Brands
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Steel

Coated Steel

Long Steel

Distribution

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Business Description

• Stramit Building Products: a leading Australian manufacturer of steel building products, including roofing, walling, gutters and fascia's, purlins, flooring structural formworked and roller doors.

• CSP Coatings Systems provides metal coating systems to customers throughout New Zealand.

• Dimond: New Zealand’s largest manufacturer of steel roofing, cladding, structural and rainwater products.

• Pacific Coilcoaters pioneered pre-painted metals products in New Zealand

• Pacific Steel Group; New Zealand’s only manufacturer of Wire Rod, Galvanised Wire and Reinforcing Bar and Coil products.

• Sims Pacific Metals NZ’s largest metal recyclers, a 50/50 joint venture between Sims Metal Industries.

• Fletcher Easysteel, a major New Zealand processor and distributor of steel and related products.

• Fletcher Reinforcing: supplies reinforcing steel and mesh for concrete foundations and structures.

Investor Presentation | Fletcher Building | © May 2012

Appendix | Page 44

Steel result

NZ$m	Dec 11 6 Mths Dec 10 6 Mths % ∆
Sales	596 616 -3
EBITDA	36 54 -33
EBIT	24 43 -44
Funds Employed	578 568 +2
EBITDA/sales %	6.0 8.8
EBIT/sales %	4.0 7.0
ROFE %	8.3 15.1

Long steel earnings impacted by reduced margins, as a result of global pricing pressures, particularly in Australia.

Rollforming and coated steel volumes fell 6% due to lower residential activity in NZ and Australia.

Steel distribution and services earnings down 60% due to soft volumes and margin pressure.