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Fletcher Building announces on-market share buyback, updates FY21 EBIT guidance to $650m to $665m

Auckland, 26 May 2021: Fletcher Building Limited (‘Fletcher Building’ or the ‘Company’) announces that it will undertake a capital return to shareholders of up to NZ$300 million through an on-market share buyback. The buyback will commence in June 2021.

Fletcher Building CEO Ross Taylor said: “Fletcher Building’s balance sheet is in a strong position, with leverage expected to remain below our target range in the medium term. This position provides us with capacity to recommence capital management and distribute up to NZ$300 million to shareholders, with the most effective method being an on-market share buyback.”

The announcement coincides with Fletcher Building’s virtual Investor Day for investors and analysts from 11:00am NZT to 4:00pm NZT today.

Fletcher Building management will present on the Company Strategy, Group Financial Performance, Safety, and People, Innovation and Sustainability; as well as in-depth presentations from the six Operational Divisions on key drivers of performance and growth across the business. Attached are the slide presentations in order of presentation.

Included in the Group Financial presentation is an update on guidance for FY21 EBIT (before significant items) which is expected to be in the range of $650 million to $665 million, at the top end of the previous guidance range.

Ross Taylor said: “We continue to make material progress on executing our strategy and achieving key financial targets. We are seeing a broadly stable market environment with trading conditions in the second half of FY21 largely consistent with the first. Despite some supply chain constraints and input cost pressures, we continue to see good margin performance from the business. Forward indicators for market activity are pointing to ongoing robust volumes in New Zealand and Australia, with our businesses focused on delivering above market growth and improved profitability in this environment.”

To register for the event and to watch the webcast live, please access the following microsite: https://fletcherbuildinginvestorday.gcs-web.com

The microsite will be available for a replay of the presentations.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand

Investors and analysts will be able to ask questions live via the webcast facility following each of the presentations. While every endeavor will be made to answer all the questions that are submitted, this may not be possible due to time constraints, and is at the discretion of Fletcher Building management.

#Ends

Authorised by: Chris Reid Company Secretary

For further information please contact:

MEDIA INVESTORS AND ANALYSTS Christian May Aleida White General Manager - Corporate Affairs Head of Investor Relations +64 21 305 398 +64 21 155 8837 [email protected] [email protected]

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand

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Fletcher Building Investor Day May 2021

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26 May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor 2. Group Financials Bevan McKenzie 3. Safety Wendi Croft 4. Building Products Hamish McBeath 5. Concrete Nick Traber 6. Distribution Bruce McEwen 7. Residential and Development Steve Evans 8. Construction Peter Reidy 9. Australia Dean Fradgley 10. People, Innovation and Sustainability Claire Carroll 11. Concluding Remarks and Q+A Ross Taylor

Fletcher Building Limited

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Welcome and introduction

Section	Section	Presenter	AEST / NZT
1.	Introduction, Fletcher Building Overview	Ross Taylor	9:00am / 11:00am
2a.	Group Financials	Bevan McKenzie	9:20am / 11:20am
2b.	Q+A	Ross Taylor and Bevan McKenzie	9:40am / 11:40am
3.	Safety	Wendi Croft	10:00am / 12:00pm
4.	Building Products	Hamish McBeath	10:15am / 12:15pm
5.	Concrete	Nick Traber	10:45am / 12:45pm
6.	Distribution	Bruce McEwen	11:15am / 1:15pm
7.	Residential and Development	Steve Evans	11:45am / 1:45pm
8.	Construction	Peter Reidy	12:15pm / 2:15pm
9.	Australia	Dean Fradgley	12:45pm / 2:45pm
10.	People, Innovation and Sustainability	Claire Carroll	1:15pm / 3:15pm
11.	Concluding Remarks and Q+A	Ross Taylor	1:40pm / 3:40pm

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Fletcher Building Limited Investor Day Presentation | © May 2021

Presentations from our Executive Team members

Operational Heads presenting

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HAMISH

HAMISH BRUCE McBEATH McEWEN Chief Executive Chief Executive Building Products Distribution

NICK TRABER

Chief Executive Concrete

Functional Heads presenting

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CLAIRE CARROLL

BEVAN WENDI CLAIRE McKENZIE CROFT CARROLL Chief Financial Chief Health and Chief People and Officer Safety Officer Communications Officer

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STEVE EVANS Chief Executive Residential and Development

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DEAN FRADGLEY Chief Executive Australia

PETER REIDY Chief Executive Construction

Functional Heads

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ANDREW DANIEL CLARKE BEECHAM Group General Chief Information Counsel and Officer Company Secretary

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4 Fletcher Building Limited Investor Day Presentation | © May 2021

Adjustment of viewing panes and Q&A functionality

If you are using a desktop, you can resize any of the viewing panes by grabbing the edge and making it bigger or smaller. You can also move any windows in the same way

To send in a question, simply click the “Q&A” tab, type your question and then press “New Question” button

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Fletcher Building Limited Investor Day Presentation | © May 2021

Mobile device Q&A functionality

If you are using a mobile device, tab the menu icon at the top left hand corner to open the panel and tab the “Q&A” icon

Enter your question into the text box and tab “New Question”

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

Agenda
1. Introduction, Fletcher Building Overview	Ross Taylor
2. Group Financials	Bevan McKenzie
3. Safety	Wendi Croft
4. Building Products	Hamish McBeath
5. Concrete	Nick Traber
6. Distribution	Bruce McEwen
7. Residential and Development	Steve Evans
8. Construction	Peter Reidy
9. Australia	Dean Fradgley
10. People, Innovation and Sustainability	Claire Carroll
11. Concluding Remarks and Q+A	Ross Taylor

CEO of Fletcher Building since November 2017
Spent career in the Real Estate, Construction, Engineering and Building Products sectors internationally; worked extensively across: New Zealand, Australia, Asia, Europe and the USA
Direct experience across much of the sector value chain, having led businesses with activities in: investment, development, construction, product manufacturing, and resources extraction & operations

Fletcher Building Limited

Significant NZ and Australia player, focused in the building products and distribution sectors

People: c.14,500 External Revenue: NZD c.$8.0 billion NZX/ASX listed: FBU

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New Zealand Australia South Pacific
c.9,100 people c.4,600 people c.800 people
External
Revenue
$5.2b $2.8b $0.1b
FY21F
NZ Residential
9% [4%]
NZ Commercial
36%
NZ Infrastructure
19%
AU Residential
AU Commercial
17%
15%
AU Infrastructure
by Market (%)
Total FB Revenue
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Fletcher Building Limited Investor Day Presentation | © May 2021

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Leading NZ sector exposures with strong market positions and brands

New Zealand	Market share	Sites	Gross Revenue

Building Products	32%1	c.65	$1.4b
Distribution	20%1	140 points of presence	$1.7b
Concrete	38%1	c.100	$0.8b
Residential & Development	#2 largest homebuilder 800 homes p.a.	Auckland Christchurch	$0.7b
Construction	7%1		$1.4b

1. Estimates based on the markets in which we participate, e.g. SME, Commercial, Plumbing, Bathroom, Group Home Builders and Retail for PlaceMakers and Mico

Fletcher Building Limited Investor Day Presentation | © May 2021

Australia position smaller but scale in specific sectors

Australia Market share Sites Gross Revenue Brands Building Products 29%[1] 74 $2.8b Distribution 19%[1] 221

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Fletcher Building Limited Investor Day Presentation | © May 2021

1. Estimates based on the markets in which we participate, e.g. Plumbing distribution market for Tradelink

Having reset the business, delivering performance in FY21, we are strongly positioned for ongoing performance and growth

FY19 FY20 FY21 FY22 FY23+ Refocus & stabilise Set up for Performance Ongoing performance & growth performance

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Fletcher Building Limited Investor Day Presentation | © May 2021

Our strategy is aligned to this next phase of ongoing performance & growth

Vision		To be the leader in New Zealand and Australian building products and solutions	To be the leader in New Zealand and Australian building products and solutions
Purpose		Improving the world around us through smart thinking, simply delivered
Strategic Goals	Zero injuries every day	Market leading customer solutions and services	Lowest delivered cost Economic performance of each business in industry top quartile	Leadership in innovation, sustainability, and growth via disruption
Our People	Focused on operational excellence	Global expertise – locally delivered	Obsession for customers Strive for growth and innovation	Driven by purpose and values
Group	Zero Serious Injuries	NPS ≥ 55	Engagement ≥ 80% 30% Carbon Reduction
Measures	DIFOTIS ≥ 98%	EBIT Margin ≥ 10%	Cash Conversion ≥60%	ROFE ≥ 15%

Values

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Fletcher Building Limited Investor Day Presentation | © May 2021

DIFOTIS = Delivery In Full On Time On Spec

Focus on achieving our vision, anchored by our purpose and values

Vision		To be the leader in New Zealand and Australian building products and solutions	To be the leader in New Zealand and Australian building products and solutions
Purpose		Improving the world around us through smart thinking, simply delivered
Strategic Goals	Zero injuries every day	Market leading customer solutions and services	Lowest delivered cost Economic performance of each business in industry top quartile	Leadership in innovation, sustainability, and growth via disruption
Our People	Focused on operational excellence	Global expertise – locally delivered	Obsession for customers Strive for growth and innovation	Driven by purpose and values
Group	Zero Serious Injuries	NPS ≥ 55	Engagement ≥ 80% 30% Carbon Reduction
Measures	DIFOTIS ≥ 98%	EBIT Margin ≥ 10%	Cash Conversion ≥60%	ROFE ≥ 15%

Values

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Fletcher Building Limited Investor Day Presentation | © May 2021

Our strategic goals driving us to achieve performance and growth

Vision		To be the leader in New Zealand and Australian building products and solutions	To be the leader in New Zealand and Australian building products and solutions
Purpose		Improving the world around us through smart thinking, simply delivered
Strategic Goals	Zero injuries every day	Market leading customer solutions and services	Lowest delivered cost Economic performance of each business in industry top quartile	Leadership in innovation, sustainability, and growth via disruption
Our People	Focused on operational excellence	Global expertise – locally delivered	Obsession for customers Strive for growth and innovation	Driven by purpose and values
Group	Zero Serious Injuries	NPS ≥ 55	Engagement ≥ 80% 30% Carbon Reduction
Measures	DIFOTIS ≥ 98%	EBIT Margin ≥ 10%	Cash Conversion ≥60%	ROFE ≥ 15%
Values

Fletcher Building Limited Investor Day Presentation | © May 2021

Our people are integral to delivery of our strategy

Vision		To be the leader in New Zealand and Australian building products and solutions	To be the leader in New Zealand and Australian building products and solutions
Purpose		Improving the world around us through smart thinking, simply delivered
Strategic Goals	Zero injuries every day	Market leading customer solutions and services	Lowest delivered cost Economic performance of each business in industry top quartile	Leadership in innovation, sustainability, and growth via disruption
Our People	Focused on operational excellence	Global expertise – locally delivered	Obsession for customers Strive for growth and innovation	Driven by purpose and values
Group	Zero Serious Injuries	NPS ≥ 55	Engagement ≥ 80% 30% Carbon Reduction
Measures	DIFOTIS ≥ 98%	EBIT Margin ≥ 10%	Cash Conversion ≥60%	ROFE ≥ 15%
Values

Fletcher Building Limited Investor Day Presentation | © May 2021

Key group measures are aimed to deliver financial and non-financial performance and growth

Vision		To be the leader in New Zealand and Australian building products and solutions	To be the leader in New Zealand and Australian building products and solutions
Purpose		Improving the world around us through smart thinking, simply delivered
Strategic Goals	Zero injuries every day	Market leading customer solutions and services	Lowest delivered cost Economic performance of each business in industry top quartile	Leadership in innovation, sustainability, and growth via disruption
Our People	Focused on operational excellence	Global expertise – locally delivered	Obsession for customers Strive for growth and innovation	Driven by purpose and values
Group	Zero Serious Injuries	NPS ≥ 55	Engagement ≥ 80% 30% Carbon Reduction
Measures	DIFOTIS ≥ 98%	EBIT Margin ≥ 10%	Cash Conversion ≥60%	ROFE ≥ 15%
Values

Fletcher Building Limited Investor Day Presentation | © May 2021

Confident this strategy positions us well to drive shareholder value in the short- and long-term

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||||||
|---|---|---|---|---|
|01|02|03|04|05|
|Focus|Strong|Significant|Global and|Well-positioned|
|financial|near-term|regional|for long-term|
|positioning|“self-help”|macro trends|and sustainable|
|value creation|are supportive|growth|
|opportunity|

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Fletcher Building Limited Investor Day Presentation | © May 2021

NZ markets look favourable and “stronger for longer”

NZ Historical and Forecast

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Residential WPIP ($b) 4.0 GDP •
17.5 17.8 17.7 •
15.6 15.2 2.0
•
0.0
•
-2.0
FY19 FY20 FY21F FY22F FY23F FY19 FY20 FY21F FY22F FY23F
NZ Historical •
Commercial and Infrastructure WPIP ($b) Floating 1 Year Mortgage OCR
Commercial Infrastructure 6.0 0.25%
as at
5.5
5.0 30-Apr-21 •
8.6 8.5 8.9 9.8 10.4
4.5
8.7 8.6 8.5 8.8 9.1 4.0 •
•
FY19 FY20 FY21F FY22F FY23F
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Strong economic backdrop
Ongoing structural undersupply of housing in NZ (housing undersupply of 40,000 dwellings)
Growing population

Demographic ageing contributing to additional increases in housing demand with smaller households

Monetary policy settings likely to support low-interest rate environment in the mediumterm (low term deposit interest rates and low borrowing rates driving housing investment)

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Floating 1 Year Mortgage OCR
term (low term deposit interest rates and low
6.0 0.25%
as at borrowing rates driving housing investment)
5.5
5.0 30-Apr-21 • Residential consents at record high but
4.5 capacity constraints drives solid WPIP pipeline
4.0
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Govt. committed to infrastructure spend
Employment rate strong

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Source: Infometrics, RBNZ, NZ Initiative WPIP = Work Put In Place

Fletcher Building Limited Investor Day Presentation | © May 2021

Australia macro backdrop supportive for growth

AU Historical and Forecast

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Residential Work Done (A$b) 8.0 GDP • Strong economic backdrop
80.6
75.3 75.7 76.6 4.0 • Government stimulus driving home building
72.8
0.0 • Low term deposit interest rates and low
-4.0 borrowing rates driving housing investment
-8.0 • Govt. committed to infrastructure spend
FY19 FY20 FY21F FY22F FY23F FY19 FY20 FY21F FY22F FY23F
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Government stimulus driving home building
Employment rate strong

AU Historical

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• Consents growth points to growing outlook
Commercial and Infrastructure Work Done (A$b) Floating 1 Year Mortgage (%) Cash Rate
for work done
5.50 Target
Commercial Infrastructure
0.10%
5.00
as at
132.8 30-Apr-21
96.1 95.3 104.4 120.1 4.50
4.00
45.9 49.4 46.5 44.3 46.2
FY19 FY20 FY21F FY22F FY23F
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Fletcher Building Limited Investor Day Presentation | © May 2021

Source: BIS Oxford Economics, RBA

FY21 Forecast and share buyback

Strong earnings growth and improved profitability, EBIT at top end of guidance range, on-market share buyback of up to $300m

➔ Solid revenue of approximately $8b, trading conditions in 2H21 broadly consistent with 1H21
➔ Forward indicators point to ongoing robust volumes, with industry operating at or near capacity in certain areas
➔ Input cost pressures (esp. steel, energy) flowing through to price
➔ FY21 EBIT before significant items expected to be at the top end of earlier guidance, in a range of $650-665 million
➔ Cash flows remain strong, FY21F leverage of c.0.3x
➔ FBU intends to conduct an on-market share buyback and purchase up to NZ$300m over the next 12 months
➔ Management expects Board to declare an FY21 final dividend in August 2021

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Note: Measures before significant items are non-GAAP measures used by management to assess the performance of the business and are derived from Fletcher Building Limited’s financial statements. Details of historic significant items can be found in note disclosures of the financial statements

Fletcher Building Limited Investor Day Presentation | © May 2021

Near-term outlook

Driving growth through operational improvement & growth initiatives, well-positioned through to FY23+

Pathway to c.10% EBIT margin in FY23

Positioned for earnings growth to FY23 and beyond

1. Australia margins lift to 5-7% on continued improvement in operating disciplines and growth initiatives

➔ Investing for growth through capital expenditure envelope and targeted operating expenditure spend

2. Construction margins lift to 3-5% as forward order book replaces nil margin legacy work

3. NZ Core margins expand slightly as adjacencies add operating leverage and continue to drive BU performance

  - ➔ Investing $50-100m p.a. capex for growth & efficiency

  - ➔ Investing $30-40m p.a. opex for growth initiatives and systems development

➔ Focus areas for growth:

4. Residential & Development targeting strong top-line growth at >15% margin, accretive to overall Group margin

➔ Core: product adjacencies, decarbonisation, customer ecosystems, modern manufacturing
➔ Residential & Development: scale base business, offsite manufacturing, apartments
➔ Digital and backbone systems

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials Bevan McKenzie

3. Safety Wendi Croft

4. Building Products Hamish McBeath

5. Concrete Nick Traber

6. Distribution Bruce McEwen

7. Residential and Development Steve Evans

8. Construction Peter Reidy

9. Australia Dean Fradgley

10. People, Innovation and Sustainability Claire Carroll

Group CFO since November 2016

11. Concluding Remarks and Q+A Ross Taylor

Led several significant portfolio changes, including Higgins acquisition and International divestment; led reset of Group balance sheet and improved cash generation
Previously in global positions in strategy, M&A and commercial at Boston Consulting Group and Roquette Frères

Fletcher Building Limited

Overview

Material progress on key financial targets, strong balance sheet, well-positioned for shareholder returns

	Focus		Progress
	Margins ➔EBIT margin1: target >10%		➔+100bps margin FY19-21F ➔Path to c.10% in FY23
	Investment ➔Base capex: sustainable average of $200-250m p.a.		➔Base capex down from c.$300m p.a.
	& Returns ➔ROFE: target >15%		➔ROFE c.18% FY21F
	Cash Flow ➔Working capital: target 5-day reduction off FY18 base ➔Cash conversion2: target 60%		➔W/cap target delivered two years early ➔Cash conversion 85% FY19-21F
Balance Sheet & Funding ➔Leverage3: target 1.0x - 2.0x ➔Reduce gross debt and funding costs ➔Robust liquidity & maturity profiles			➔Leverage c.0.3x FY21F ➔Funding costs reduced >$100m FY18-FY21F ➔Liquidity c.$1.4b FY21F
	Shareholder ➔Dividend pay-out ratio: 50-75% of net earnings1		➔Dividend reinstated FY21
	Returns ➔Additional capital returns where sensible		➔On-market buyback up to $300m
23	Fletcher Building LimitedInvestor Day Presentation	© May 2021	1. Before significant items 2. Free Cash Flow / EBIT 3 Net Debt / EBITDA Leverage range

3. Net Debt / EBITDA. Leverage range was adjusted from 1.5x-2.0x to take account of impact of IFRS 16 accounting standard on EBITDA

Margins

100bps improvement in EBIT margin since FY19, path to c.10% in FY23

EBIT Margin[1] (%)

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c.10%
c.8.2%
7.2%
FY19 FY21F FY23 Target
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Pathway to 10% in FY23

1. Australia margins lift from c.3.5% in FY21F to 5-7% on continued improvement in operating disciplines and growth initiatives

2. Construction margins lift from c.2% in FY21F to 3-5% as forward order book replaces nil margin legacy work

3. NZ Core margins expand slightly as adjacencies add operating leverage and continue to drive BU performance

4. Residential and Development targeting strong top-line growth at >15% margin, accretive to overall Group margin

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Fletcher Building Limited Investor Day Presentation | © May 2021

1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

Margins

Efficiency programs have delivered material cost reductions, especially in Core Divisions; focused on drivin additional o eratin levera e off this base g p g g

Core Divisions: Overhead Costs % of Revenue[1]

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22.9%
c.21.9%
FY19 FY21F
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➔ Efficiency programs commenced in FY18: focused initially on Australia, then on New Zealand
➔ Gross cost-out (overheads and COGS; fixed and variable) of >$250m, including gross fixed cost-out in FY21 of >$150m. A portion of the benefits have served to offset inflation
➔ In the Core Divisions, efficiency programs have delivered a net 100bps improvement in overheads % from FY19 to FY21 on a broadly flat revenue base
➔ Cost base now broadly right-sized – will make targeted overhead investments to support key growth initiatives and drive operating leverage

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1. Core Divisions = Building Products, Concrete, Distribution, Australia. Overhead costs = Warehousing, Distribution, and Selling, General & Administration Expenses. FY19 adjusted for IFRS 16 to allow like-for-like comparison

Fletcher Building Limited Investor Day Presentation | © May 2021

Investment

Base capex expected to average $200-250m p.a. in FY22-FY24

Base Capex	Average Spend p.a.	Focus Areas
		➔Maintenance investment compares to depreciation (excl. ROU1) of c.$180m p.a.
Maintenance	$150-200m	➔Includes ongoing investment to create fit-for-purpose systems environment,
		c.$25-40m p.a.
		➔Target ROFE >15% on growth and efficiency investments
Growth & Efficiency	$50-100m	➔Focused on modern manufacturing, product adjacencies, digital / customer
		ecosystems and opportunities for disruption
		➔Our focus is organic investments to scale current business and drive operating
		leverage
Total	$200-250m	➔Expect to manage growth capex within base envelope, though there may be

➔ Expect to manage growth capex within base envelope, though there may be some variability in annual spend depending on phasing of investments
➔ Base capex excludes new Winstone Wallboards (WWB) plant

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Fletcher Building Limited Investor Day Presentation | © May 2021

1. Right-of-use

Investment

New WWB plant replaces end-of-life asset and provides growth capacity

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NZ Plasterboard Consumption (m [2] )
vs. Population (m) WWB Investment Phasing ($m)
6,000 35,000
c.220
30,000
5,000
25,000
4,000
20,000
3,000
15,000
2,000
10,000 c.80 c.75
1,000
5,000
22
0 0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Est Resident Population Total Plasterboard Sales m2 FY20 FY21F FY22F FY23F
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➔ New plant near Tauranga provides 30Mm[2 ] North Island capacity (currently 20Mm[2] )
➔ Maintenance investment to replace endof-life asset, also providing capacity for long-term demand and product innovation
➔ Construction program advancing well, FY21 capex now expected to be c.$80m (previously c.$50m) – no change in overall project cost, timing variance only

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Fletcher Building Limited Investor Day Presentation | © May 2021

Investment

Residential & Development scaling to c.1,000 houses p.a. and proving out growth opportunities – expect funds invested to build from c.$560m currently to c.$750m in FY22

Residential and Development Funds Invested: FY21F-22F ($m)

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Key: FY21F c.750
Likely incremental investment FY22
c.200
0-25
100-150 50-100 90
30
560
440
Residential - Residential - Development Total Division
Base Business Apartments & OSM
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➔ Base housing business – scale to c.1,000 units p.a.
➔ Growth opportunities – OSM[1] , apartments, retirement offer in existing communities
➔ Land Development – targeting ongoing $25m+ p.a. EBIT, combination of surplus FB properties and acquired sites
➔ Funds expected to build in FY22 to c.$750m as we reinvest in land stocks and to support growth opportunities
➔ Cash conversion[2] : averaged c.120% from FY19-FY21; expected to be lower in FY22-FY23 as net working capital builds

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1. Offsite Manufacturing

Fletcher Building Limited Investor Day Presentation | © May 2021

2. Pre-Tax Free Cash Flow / EBIT

Investment

We are making targeted OPEX spend to support delivery of organic growth initiatives

Spend p.a. Timing OPEX on Key Initiatives (incremental to FY21 base)	Spend p.a. Timing OPEX on Key Initiatives (incremental to FY21 base)	Spend p.a. Timing OPEX on Key Initiatives (incremental to FY21 base)
		FY22-FY23 FY22-FY23 ➔Targeted investment of c.$30-40m p.a. OPEX (above the line) in FY22-FY23 to support growth initiatives and accelerate systems development FY22-FY25
Core Divisions1– product adjacencies, decarbonisation, customer ecosystems Resi & Devt – scaling base business, apartments, OSM, retirement Digital and backbone systems	c.$10-20m c.$5m c.$10-20m

		FY23 ➔WWB plant transition costs in FY23 expected to be a significant item (below the line charge)
WWB – plant transition costs	c.$15-20m

Fletcher Building Limited Investor Day Presentation | © May 2021

1. Core Divisions = Building Products, Concrete, Distribution, Australia

Return on investment

Currently exceeding 15% ROFE target – expect to continue to do so as funds base lifts on investments in rowth and WWB lant g p

ROFE[1] (%) and Closing Operating Funds ($b)

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c.18%
> 15%
13.5%
FY19 FY21F FY23 Target
Operating Funds
$4.0b c.$3.7b $4.2-4.4b
(closing)
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➔ ROFE[1] target of >15% through-the-cycle, also acts as hurdle for growth investments
➔ FY21 ROFE well ahead of target
➔ Operating funds base will lift from FY21 to FY23 on:
➔ Growth capex
➔ Investment in Residential and Development working capital
➔ Completion of WWB plant
➔ Unwind of final FCC legacy provisions
➔ Expect to continue delivering above 15% ROFE target

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1. Return on Funds Employed (ROFE) is EBIT to average funds (net debt and equity less deferred tax asset); FY19 adjusted for IFRS 16 to allow like-for-like comparison

Fletcher Building Limited Investor Day Presentation | © May 2021

Cash flow

Working capital target of 5-day improvement in Core Divisions delivered ahead of plan

Working Capital[1] Receivables & Inventory – Core Divisions (days)

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116
c.110
FY18 FY21F
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➔ Target set in FY18 was to reduce Core working capital by
5-days by FY23, through improved stock & receivables management. Creditor terms considered appropriate and held broadly steady
➔ 1-day = c.$15m cash release, hence total benefit >$75m
➔ Targeted improvement in stock and receivables achieved two years early
➔ Small amount (c.$25m) of inventory rebuild expected in FY22 to build supply chain resilience; otherwise working capital now considered to be at appropriate levels

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Fletcher Building Limited Investor Day Presentation | © May 2021

1. FY18 adjusted for IFRS 16 to allow like-for-like comparison

Cash flow

Underlying cash generation of the business has been strong

Underlying Trading Cash-Flow[1] ($m)

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850-900
585
565
FY19 FY20 FY21F
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➔ Group cash generation has been strong: total of c.$2.0b underlying trading cash-flow[1] in FY19-FY21
➔ Strong underlying cash conversion[2] of c.85% in FY19-FY21 – driven by working capital management, strong Residential & Development cash flows, and limited cash tax paid due to FCC legacy losses
➔ Cash conversion will be lower in FY22-23 as we invest in rebuild of Residential housing inventories and WWB plant
➔ Expect to return to cash tax payments in NZ mid-2022

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1. Trading Cash-Flow = EBITDA less Lease Principal Payments & Lease Interest Paid plus / minus Working Capital Movements. Underlying trading cash-flow excludes FCC Legacy Cash-Flow and Significant Items.

2. Cash conversion = Free Cash Flow / EBIT. Excludes significant items and FCC legacy cash-flows

Fletcher Building Limited Investor Day Presentation | © May 2021

Funding

Drawn debt and funding costs have reduced materially, while maturity and liquidity profiles remain strong

Debt drawings ($m)

Debt maturity profile ($m)

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1,877
14
94
97
1,120 400
525
843
459
23
459
9
566
149
361 100
57 55
Jun-18 Jun21F FY22 FY23 FY24-25 FY26+
Capital Notes USPP Capital Notes USPP
Bank Syndicate Other Bank Syndicate Other
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➔ Gross debt reduced by c.$1b since Jun-18
➔ Funding costs reduced from $155m in FY18 to c.$50m in FY21
➔ Robust maturity profile – average 4.7 years
➔ Jun-21F liquidity of c.$1.4b
➔ Banking covenants return to normal testing from 30 June; material headroom on all covenants

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Fletcher Building Limited Investor Day Presentation | © May 2021

Leverage

Strong balance sheet, well-positioned to support continued execution of strategy

Leverage (Net Debt / EBITDA)

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2.0x
Target range
1.0x
0.9x
0.3x
FY20 FY21F
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➔ Cash generation has supported strong balance sheet position and a sustained reduction in leverage
➔ Investments in FY22-23 in the WWB plant, Core growth capex, and residential land and housing stocks are expected to lift leverage above the current level of c.0.3x
➔ However, leverage is still expected to be below bottom end of target range as underlying cash-flows remain strong

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Fletcher Building Limited Investor Day Presentation | © May 2021

Capital return

With the balance sheet materially de-levered, FBU intends to conduct an on-market share buyback of up to NZ$300m over the next 12 months

➔ Fletcher Building continuously assesses its balance sheet position and investment opportunities in order to drive shareholder returns
➔ Where there are incremental cash flows available, Fletcher Building makes a disciplined assessment of how to enhance shareholder value with the appropriate mix of debt reduction, additional growth investment and shareholder returns
➔ Fletcher Building has a continued preference for prudent balance sheet management; however, projects that its leverage (Net Debt / EBITDA) is likely to remain below the target leverage range in the medium-term
➔ On this basis, Fletcher Building considers incremental capital is available to be distributed to shareholders through an on-market share buyback of up to NZ$300m
➔ This form of shareholder distribution takes into account the level of franking / imputation credits available, tax effectiveness for all shareholders and earnings per share accretion
➔ The buyback is expected to commence in June 2021
➔ Through the course of the buyback period, Fletcher Building will continue to assess market conditions, Fletcher Building’s prevailing share price, and available investment opportunities

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Fletcher Building Limited Investor Day Presentation | © May 2021

Dividends

FY21 interim paid and final FY21 dividend expected, targeting a pay-out ratio of 50-75% of net earnings; im utation ex ected from FY22 p p

➔ Policy to pay dividends in the range of 50-75% of net earnings before significant items and having regard to available cash flow
➔ HY21 interim dividend of 12cps paid in March 2021
➔ Management expects Board to declare an FY21 final dividend in August 2021
➔ FBU expects to be in a position to impute the FY22 final dividend (giving rise to the NRWT[1] benefit for non-NZ resident shareholders), and targets imputation of at least the final dividend on an ongoing basis
➔ Franking of dividends not expected in the near-term

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Fletcher Building Limited Investor Day Presentation | © May 2021

1. Non Resident Withholding Tax

FY21 EBIT Guidance

Expected to be $650-665m, at top end of the prior guidance range

Division	FY21F EBIT1
Building Products	$190-195m
Distribution	$125-130m
Concrete	$110-115m
Residential & Development	$145-150m
Construction	$25-30m
Australia	$100-105m
Corporate	$(55)m
Group	$650-665m

➔ FY21 EBIT before significant items expected to be $650-665m (previously $610660m). Updated guidance equates to c.49/51% H1/H2 split ➔ Trading conditions in 2H21 broadly consistent with 1H21; some impact (c.$10m$15m) in 2H21 from supply chain constraints and input cost pressure (energy, steel) ➔ Improved outcome on sale of Rocla Gailes site means FY21 Land Development EBIT expected to be c.$50m ➔ Rocla: if completed, sale price expected to be c.NZ$60m, additional non-cash impairment c.$20m and reclass of FCTR[2] c.$30m. Completion targeted for 1Q22 ➔ Significant Items: total FY21 c.$130m (excluding FCTR) ➔ Group capex expected to be c.$230m: base capex c.$150m, WWB c.$80m

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1. EBIT before significant items 2. FCTR = Foreign Currency Translation Reserve

Fletcher Building Limited Investor Day Presentation | © May 2021

Summary

Material progress on key financial targets, strong balance sheet, well-positioned for shareholder returns

➔ +100bps margin improvement since FY19, driven particularly by targeted efficiency programs Margins ➔ Path to c.10% margin in FY23 Investment ➔ Base capex $200-250m p.a., residential investment c.$200m FY22, targeted OPEX spend to support growth & Returns ➔ Exceeding ROFE target of >15% ➔ Working capital efficiency embedded, has delivered c.$75m cash release Cash Flow ➔ Cash conversion well above target FY19-FY21, lower in FY22-23 as we invest in WWB and Residential Balance Sheet ➔ Strong balance sheet: leverage0.3x, liquidity $1.4b, well-placed to support organic growth investments & Funding ➔ Gross debt reduced >$1b, funding costs reduced >$100m p.a. Shareholder ➔ Well-positioned for sustainable dividend pay-out of 50-75% of net earnings Returns ➔ In addition, on-market share buyback of up to NZ$300m over the next 12 months

Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview	Ross Taylor
2. Group Financials	Bevan McKenzie
3. Safety	Wendi Croft
4. Building Products	Hamish McBeath
5. Concrete	Nick Traber
6. Distribution	Bruce McEwen
7. Residential and Development	Steve Evans
8. Construction	Peter Reidy
9. Australia	Dean Fradgley
10. People, Innovation and Sustainability	Claire Carroll
11. Concluding Remarks and Q+A	Ross Taylor

CE Health & Safety since October 2018
Leading Protect reset within Fletcher Building
Previously led health and safety for international organisations in multiple jurisdictions, including North and South America, Europe, Asia, Australia and New Zealand

Fletcher Building Limited

Safety is a key element of our Strategy

Safety

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Total Recordable Injury
Serious Injuries [2]
Frequency Rate [1]
33
10.7
8.5
21 21
6.8 6.7 6.9
6.4
6.0
5.7 5.3
5.2
5.1
8
6
FY11 FY13 FY15 FY17 FY19 YTD21 FY17 FY18 FY19 FY20 YTD21
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➔ ‘Protect’ safety programme to realise a future where zero injuries everyday is possible
➔ Current focus is on critical risks, high potentials, and resetting culture & behaviours
➔ Serious Injury elimination is our initial goal
➔ TRIFR target to under 3.0 in the long run (well below industry average)

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1. TRIFR = Total no. of recorded injuries per million man hours worked. Does not include Restricted Work Injuries

2. Serious Injury include immediate treatment as an in-patient at hospital for more than 24 hours or immediate treatment for a serious injury or illness as defined by Safe Work Australia

YTD21 = Data presented is from Jul-20 to Apr-21

Fletcher Building Limited Investor Day Presentation | © May 2021

The five pillars of our Protect strategy

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SHIFT DEVELOP ENABLE MANAGE DRIVE MINDSETS LEADERS FRONTLINE CRITICAL RISKS ACCOUNTABILITY

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Fletcher Building Limited Investor Day Presentation | © May 2021

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43 Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials Bevan McKenzie

3. Safety Wendi Croft

4. Building Products Hamish McBeath

5. Concrete Nick Traber

6. Distribution Bruce McEwen

7. Residential and Development Steve Evans

8. Construction Peter Reidy

9. Australia Dean Fradgley

10. People, Innovation and Sustainability Claire Carroll

11. Concluding Remarks and Q+A Ross Taylor

Appointed CE of the Building Products Division in June 2019. Prior to this, he was CE of the Steel Division
Having risen through the business from shift manager, Hamish has deep operational knowledge of our manufacturing plants, supply chains and customer

Fletcher Building Limited

Building Products The leading New Zealand building products solutions provider

➔ Market leading building products brands for the finishing trades with world leading technical product knowledge
➔ Integrated value chain in pipes, servicing a wide range of customers
➔ Balanced portfolio of Steel businesses holding No. 1 or No. 2 position across its categories

Business Unit Overview

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Winstone Wallboards is NZ’s only manufacturer and distributor of plasterboard and drywall systems under the iconic GIB® brand
Laminex NZ provides a range of decorative surfaces and panel products. It manufactures particle board and low pressure laminated products and distributes a range of products including Strand board, Formica HPL and Caesarstone

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TINZ is New Zealand's only manufacturer and distributor of glass wool insulation under the Pink Batts brand. Supported by a nationwide installer network trading as Pinkfit

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Humes is a manufacturer of concrete pipes, precast concrete products and a distributor of drainage products and solutions via its 14 distribution sites

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Iplex is a manufacturer of plastic pipe, offering a broad range of products / solutions for the civil, rural, plumbing, energy and communication sectors
Portfolio of businesses, operating under the umbrella of Fletcher Steel, includes EasySteel; Pacific Coilcoaters; Dimond Roofing; Fletcher Reinforcing; CSP Pacific; and Fletcher Wire Products

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Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products We have an unrivalled network across New Zealand

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1,900 People

Enough pipes p.a. to circumnavigate the globe

240 tonnesp.a. of milk bottles recycled Equivalent of 5,000 homes of glass recycled every year 2.25 Mm[2] of particle board

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Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products

Leading market positions across the building products, pipes and steel verticals

Market Size ($b) and Share (%)

HY21 Revenue Weighted Sector Exposure

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$1.3b $0.6b $2.1b
100%
28%
46%
26%
Key: Residential Non Residential
Infrastructure / Other
Products Pipes Steel
Key: FBU Share Other Competitors
Market share %
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Fletcher Building Limited Investor Day Presentation | © May 2021

Source: FBU Management estimates

Building Products

Business strategies and cost bases reset, c.14% EBIT margin sustainable

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EBIT ($m) [1] EBIT Margin [1] (%) and ROFE [2] (%) Key Non-financial Measures
FY19 YTD21
c.25.2%
24.0%
$190-195m TRIFR [3] 6.4 7.6
$167m
NPS 35 46
Engagement 72% 73%
c.14.0%
12.7% Carbon (‘000t) [4] 62 50
FY19 FY21F FY19 FY21F
EBIT margin ROFE
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1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

2. ROFE (Return on Funds Employed) calculated based on closing funds

3. TRIFR = Total no. of recorded injuries per million man house worked, does not include Restricted Work Injuries, YTD is 10 months ended 30 April 21 4. Combined scope 1& 2 carbon emissions, YTD21 is 9 months ended 31 March 21

Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products Investing in the foundations for future growth

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Economic
Leadership in
Market leading performance
innovation,
customer Lowest of each
sustainability,
solutions and delivered cost business in
and growth via
services industry top
disruption
quartile
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➔ Automation of manufacturing and supply chain

Automation

➔ Products – Weatherline, Barrierline, expanded commercial insulation offer
New product ➔ Pipes – rainwater, PE long-run and coiling solutions, expansion into new development segments with existing products
➔ Steel – solar profiles, EV charging solutions

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Innovation

New ventures

➔ Continued development and expansion of digital capability, providing greater customer intimacy
➔ Commenced work on broader gypsum board range to optimise new Tauriko plant capability post commissioning
➔ Dedicated team funded in FY22 and FY23 to identify and execute on medium-term growth adjacencies

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Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products Strong focus on efficient sites and new product development

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Leadership in
innovation,
Lowest
sustainability,
delivered cost
and growth via
disruption
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Automation of manufacturing and supply chain

Programme of new product development – Laminex

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TINZ Bagger

and Bag Placer
Productivity improvement ~7%

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Laminex LPL Rainbow Packer
Sorts, stores and restacks LPL sheets into rainbow packs
Allows customer orders to be consolidated, lowering cost to serve and increasing throughput

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Fletcher Building Limited Investor Day Presentation | © May 2021

Lowest delivered cost

Building Products

A simplified distribution business and a low cost, efficient manufacturing footprint

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FY21
14 Distribution Sites
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➔ Consolidating North Island pipe manufacturing
➔ Expanding operational footprint in Papakura
➔ Upgrading plant equipment to automate processes

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FY23
2 Pipe Manufacturing Plants 3 Precast Sites
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Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products Steel well-positioned for ongoing share gain

➔ Upgrade of PCC ovens commencing FY22. Will generate improved operational efficiencies, product offerings and significant reduction in
Best-in-class carbon emissions c.50%

manufacturing

➔ Plant modernisation programme across Reinforcing, Dimond and Easysteel processing sites continued
➔ Have rebalanced our categories, with an improved cost to serve focus,
Category introduced specialist product roles

review

➔ Adding new product solutions in roofing and infrastructure
➔ Closed two sites in the South Island and moved to a new purpose-built site
Network in Wellington optimisation ➔ National footprint optimised to provide short lead-time, local availability on core products
➔ Developing digital solutions that are in line with customers' needs and reduce cost to serve
Service focus

➔ Fletcher Steel NPS of 43 for FY21 YTD

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EBIT Weighting FY21F

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11%
49%
40%
Key: Roofing Distribution
Infrastructure
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Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products Winstone Wallboards investment delivering capacity and innovation

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Fletcher Building Limited Investor Day Presentation | © May 2021

Building Products Closing summary

➔ Business strategies and cost bases reset
➔ Strong focus on modern, automated manufacturing plants to drive operational efficiency
➔ Good programme of NPD aimed at broadening our addressable market
➔ Opportunities to push into adjacent sectors to deliver medium-term growth

Significant improvement in performance, maintaining EBIT margin at c.14% sustainable at current activity levels

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Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials	Bevan McKenzie
3. Safety	Wendi Croft
4. Building Products	Hamish McBeath
5. Concrete	Nick Traber
6. Distribution	Bruce McEwen
7. Residential and Development	Steve Evans
8. Construction	Peter Reidy
9. Australia	Dean Fradgley
10. People, Innovation and Sustainability	Claire Carroll
11. Concluding Remarks and Q+A	Ross Taylor

18 years global experience in cement, aggregates, concrete and related businesses
Joined Fletcher Building in January 2021. Prior to this, he was CEO of Holcim Switzerland & Italy, and Global Head of Cement Operations and CEO of Holcim Ecuador
Diplomas in Economics from University of Zurich; Harvard AMP & Singularity University alumni

Fletcher Building Limited

Concrete

Leading NZ Concrete business based on strong brands, capabilities and footprint

➔ Covering full concrete value chain, only in-country manufacturer of cement
➔ Unique footprint and logistics network, technical capabilities and brands
➔ Well-positioned in the fastest growing NZ markets and sectors (residential, infrastructure)

Business Unit Overview

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Leader in Certified Concrete (ready-mix), masonry (concrete blocks and pavers) and Dricon (bagged dry concrete)
• 75 certified, six masonry and two Dricon plants across NZ
• Strong products and solutions across all major segments (residential, infrastructure and commercial)
Only local integrated manufacturer of cement / special binders and distribution services
• State of the art plant at Portland with dedicated shipping, trucking and rail distribution; six service centres nationwide
• Full suite of products & services for industrial and retail customers
• Leader in aggregates, recycling / clean fill and transportation services
• 11 active quarries, six clean fills and 74 trucks nationwide serving all major markets across NZ
• Strong capability to offer integrated solutions and services to industrial, infrastructure and retail customers

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Fletcher Building Limited Investor Day Presentation | © May 2021

Concrete

Unique footprint and capabilities to serve customer needs across New Zealand

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4,000
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c ustomers
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>100

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points of sale
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1,000
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concrete mix designs

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1,200
people
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38,000
nautical miles
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225,000 truck loads

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340,000

ready-mix deliveries

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Fletcher Building Limited Investor Day Presentation | © May 2021

Concrete

Well-positioned across concrete value chain and exposure to most attractive sectors

Market Size ($b) and Share (%)

HY21 Revenue Weighted Sector Exposure

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$1.0b $0.6b $0.4b $0.1b
100%
27%
52%
21%
Key: Residential Non Residential
Infrastructure / Other
Certified Concrete Aggregates Cement Masonry Dricon
Key: FBU Share Other Competitors
60 Fletcher Building Limited Investor Day Presentation | © May 2021 Source: FBU Management estimates
Market share %
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Concrete

Solid improvement of profits and returns since FY19

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EBIT ($m) [1] EBIT Margin [1] (%) and ROFE [2] (%)
c.18.4%
$110-115m
14.0%
c.13.5%
$89m
11.1%
FY19 FY21F FY19 FY21F
EBIT margin ROFE
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Key Non-financial Measures

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FY19 YTD21
TRIFR [3] 2.0 2.9
NPS 51 64
Engagement 75% 72%
Carbon (‘000t) [4] 686 512
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1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

2. ROFE (Return on Funds Employed) calculated based on closing funds

Fletcher Building Limited Investor Day Presentation | © May 2021

Concrete

Initiatives in place to drive both margin expansion (1-2%) and above market rowth in the short- and medium-term g

FY21-23 top line growth and cost reduction initiatives

➔ Growth through differentiation (enhanced products & service Market leading solutions & offering)

services

➔ Full benefit from asset renewal and debottlenecking

Innovation

Digital

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FY23+ growth opportunities

➔ Innovative products & services
➔ Integrated solutions offering
➔ Operation & supply chain optimisation
➔ Digital customer experience

Lowest

delivered cost

➔ Footprint & supply chain optimisation
➔ Operational excellence and lean support organisation

Sustainability

➔ Alternative fuels & raw materials
➔ Supplementary cementitious materials
➔ Concrete recycling & re-use

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Fletcher Building Limited Investor Day Presentation | © May 2021

Leadership in innovation, sustainability, and growth via disruption

Concrete

Innovation as key driver for growth

From innovative products…

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+$2m sales >25% growth from masonry products

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+2m sales >25% growth from differentiated certified concrete

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… to integrated solutions

+$4m sales >30% growth retaining wall systems

+$2m sales >30% growth

X-Pod flooring system

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Fletcher Building Limited Investor Day Presentation | © May 2021

Management estimates, revenue and growth are FY20 to FY21F

Market leading customer solutions and services

Concrete

Digital as key driver for growth

From digital operation & supply chain…

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40% digital certified delivery process

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-$1m cost

by digital quarry surveying & design

… to digital customer experience

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1[st] in NZ digital RMX B2C sales channel

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>50% digital cement supply chain

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Fletcher Building Limited Investor Day Presentation | © May 2021

Leadership in innovation, sustainability, and growth via disruption

Concrete

Sustainability as key driver for growth

From leading CO2 footprint…

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35% substitution

of coal with alternative fuels

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95% products of RMX products with Environmental Product Declaration

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… to circular solutions

>$3m contribution from alternative fuels and raw materials in 2021

>25,000t

of supplementary cementitious materials in 2021

>50,000t

of recycled & reused concrete in 2022

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Fletcher Building Limited Investor Day Presentation | © May 2021

Concrete

Closing summary – NZ Concrete provides strong platform for sustainable growth

NZ leading concrete business based on strong brands, capabilities and footprint

➔ FY21-23: Performance improvement driven by top line and cost initiatives
➔ FY23+: Significant Growth opportunities related to:
➔ Innovation: innovative products, services and integrated solutions
➔ Digital: digital operational, supply chain and enhance customer experience
➔ Sustainability: leverage leadership in CO2 reductions to circularity in products and building

Initiatives in place to drive margin expansion (1-2%) and above market growth in the short- and medium-term

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Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials	Bevan McKenzie
3. Safety	Wendi Croft
4. Building Products	Hamish McBeath
5. Concrete	Nick Traber
6. Distribution	Bruce McEwen
7. Residential and Development	Steve Evans
8. Construction	Peter Reidy
9. Australia	Dean Fradgley
10. People, Innovation and Sustainability	Claire Carroll
11. Concluding Remarks and Q+A	Ross Taylor

Proven track record of driving change during seven years at Fletcher Building and previous tenure
Led Distribution Division through cost structure reset, driving digital innovation and pivoting for market growth
CA qualified; Bachelor of Commerce from the University of Canterbury

Fletcher Building Limited

Distribution

Leading trade distribution businesses in New Zealand

➔ Leading trade distributor across the NZ market in building and plumbing supplies with strong geographic network reach
➔ Positioned for growth across the key metro markets, with a strong regional play to diversify sales and earnings risk
➔ Investing in capability to deliver market leading customer service through an integrated digitised supply chain
➔ Harnessing digital capability to enable our customers to transact when and where they need it
➔ Deep customer connections, leading technical knowledge and strong grass roots presence through leading respected brands

Business Unit Overview

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PlaceMakers has served the NZ building industry for 40 years, 64 branches nationwide
It operates as New Zealand’s largest supplier of building materials and hardware, selling over 74,000 product lines from concrete to paint and plasterboard

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Leading timber framing fabricator in New Zealand
Eight plants across New Zealand producing over 100,000m³ of timber framing p.a.

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Mico has 75 years of experience in providing plumbing and bathroom products throughout New Zealand, 65 branches nationwide
Mico’s team delivers customers with a wide range of products from piping and valves to baths, vanities and more

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Forman Building Systems has been delivering energy efficient quality environments for over 100 years
Specialist Distributors of Insulation, Ceilings, Wall and Passive Fire

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Fletcher Building Limited Investor Day Presentation | © May 2021

Distribution

Strong presence across New Zealand

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140
points of presence
from Kaitaia to Invercargill
4m+
customer visits a year
70k+
trade customers
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2,500
people
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250,000 customer deliveries

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70 Fletcher Building Limited Investor Day Presentation | © May 2021

Distribution

Well-positioned in trade market mainly exposed to residential sector

Market Size ($b) and Share (%)

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$3b $0.8b $0.4b $0.3b $0.5b $3b
100%
Market share
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Small to Medium Sized Enterprises Comm. Plum Bath. GHBs Retail -bing Key: FBU Share Other Competitors

HY21 Revenue Weighted Sector Exposure

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19%
81%
Key: Residential Non Residential
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Fletcher Building Limited Investor Day Presentation | © May 2021

Source: FBU Management estimates

Distribution

Sustainable performance improvement through efficiency savings

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EBIT ($m) [1] EBIT Margin [1] (%) and ROFE [2] (%)
c.52.7%
46.0%
$125-130m
c.7.4%
$115m
7.2%
FY19 FY21F FY19 FY21F
EBIT margin ROFE
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Key Non-financial Measures

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FY19 YTD21
TRIFR [3] 5.8 5.8
NPS 36 38
Engagement 75% 68%
Carbon (‘000t) [4] 8 7
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1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

2. ROFE (Return on Funds Employed) calculated based on closing funds

3. TRIFR = Total no. of recorded injuries per million man house worked, does not include Restricted Work Injuries, YTD is 10 months ended 30 April 21

4. Combined scope 1& 2 carbon emissions, YTD21 is 9 months ended 31 March 21

Fletcher Building Limited Investor Day Presentation | © May 2021

Distribution

Near-term operational focus on continued profitable growth

➔ Strong foundations in place to drive ongoing operational performance improvements in the current business
➔ Target to capture a greater share of our customers spend with deeper data analytics to grow leadership position in key categories
➔ Enhancing our service offerings to improve customer service and engagement
➔ All to capture a greater mix of margin accretive customers, drive market share gain and earnings growth

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Fletcher Building Limited Investor Day Presentation | © May 2021

Distribution

Key strategic priorities to drive market share gain and earnings growth

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➔ E-Commerce with seamless integration into customer ecosystems Market leading customer solutions ➔ Big data analytics to create customer insights and solutions and services ➔ Network optimisation for customer centricity and efficiency Lowest delivered cost ➔ Workforce optimisation standardising new ways of working ➔ Customer segmented pricing & discount management Economic performance of each business in ➔ Procurement value creation through smart sourcing industry top quartile ➔ Digitised end-to-end supply chain to deliver best-in-class order fulfilment Leadership in innovation, ➔ Sales excellence to capture market share and share of wallet growth sustainability, and growth via disruption

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Fletcher Building Limited Investor Day Presentation | © May 2021

Market leading customer solutions and services

Distribution

E-Commerce with seamless integration into customer ecosystem

What have we done to improve performance?

What we are doing to drive growth

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➔ Constantly improving customer experience through enhanced functionality, such as “Skip the Counter”
➔ Building customer personalisation with marketing automation to create targeted offers
➔ Regional test and learn customer experiences to build customer adoption
➔ 27% of trade customers registered on the platform
➔ Launched PlaceMakers mobile app & portal capability in Q1 FY21
➔ Quickly grown to 2.1% of monthly sales
➔ Mobile capability for flexible customer use
➔ Live stock availability and personalised pricing

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Fletcher Building Limited Investor Day Presentation | © May 2021

Lowest delivered cost

Distribution

Network optimisation for customer centricity and efficiency

What have we done to improve performance?

What we are doing to drive growth

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➔ Simplified and aligned regional leadership to drive consistency of execution
➔ Products delivered from nearest branch or DC, closest to site delivery
➔ Unified and cohesive sales team that collaborates to take market share

Grouped geographically close metro PlaceMakers branches to:

➔ Streamlined technical customer support to deliver consistent and superior service
➔ Drive scale efficiencies
➔ Improve customer service
➔ Improved purchasing power with more efficient inventory management
➔ Enable property reconfiguration

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Fletcher Building Limited Investor Day Presentation | © May 2021

Leadership in innovation, sustainability, and growth via disruption

Distribution

Digitised end-to-end supply chain

What have we done to improve performance?

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Created PlaceMakers delivery services, digitising distribution capability to drive improved:

➔ Safety and efficiency
➔ Customer service
➔ Delivery to expectation (DIFOT)

What we are doing to drive growth

➔ Digitising branch processes to capture customer order information, reduce errors and create a frictionless customer experience
➔ Customer receives digital visibility of product on their order / delivery
➔ 1.4 million advance delivery notifications, now with “Uber-style” live delivery tracking
➔ Advanced analytics to provide insight on operational performance and customer insights
➔ Growing the fleet size and delivery capability to deliver specialist product

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Fletcher Building Limited Investor Day Presentation | © May 2021

Distribution

Closing summary – driving transformation through digital capability and delivery

➔ Strong financial performance with growing EBIT margins and strong return on funds employed (ROFE)
➔ Ongoing innovation in customer-focused digital solutions to drive a seamless integrated supply chain to make it easier for customers to do business the way they chose
➔ Key transformation initiatives underway to position the business for the future in a competitive market
➔ Market leading brands and capability to capture greater share of customer spend and grow overall market share in key segments by 0.5-1.0% each year

Sustainable earnings growth through focused top-line sales growth, pricing disciplines and cost efficiencies, to deliver ongoing EBIT margin expansion of 50-100bps by FY23

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Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor 2. Group Financials Bevan McKenzie 3. Safety Wendi Croft 4. Building Products Hamish McBeath 5. Concrete Nick Traber

6. Distribution Bruce McEwen

7. Residential and Development	Steve Evans
8. Construction	Peter Reidy
9. Australia	Dean Fradgley
10. People, Innovation and Sustainability	Claire Carroll
11. Concluding Remarks and Q+A	Ross Taylor

30 years experience across residential and construction sector, including international roles in Australia, Asia and UK – joined Fletcher Building in May 2014
Led the establishment of the separate Residential & Development Division and successfully restructured the FB property portfolio

Fletcher Building Limited

Residential and Development NZ’s leading Residential and Industrial Development business

➔ Centred around Auckland and Christchurch, delivering new master-planned communities at scale. Extensive land portfolio sourced through direct acquisition, partnerships with government and iwi, and through other developers where we can influence / control the masterplan. Driving efficiency in design and reducing cost to build through scale
➔ Market leading offsite manufacturing facility supports growth in homes constructed, now one year into delivery of panelised homes
➔ Pivoting into the Apartment market and adding a Retirement offering of up to 100 homes p.a. to our communities
➔ Supplementing FB Properties with further Industrial Development of land

Business Unit Overview

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Fully integrated developer and speculative builder of quality homes in Auckland and Christchurch
Forecast to sell c.850 homes in FY21 with extensive land pipeline to support 1,000+ homes sold p.a.

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Offsite manufacturer of panelised homes supplying Fletcher Living, Kainga Ora and group home builders
Forecast to complete 100 homes in FY21 with a planned step up in volumes in future years driving earnings
Newly established team focused on delivery of multi-level housing in Auckland
Apartments
Forecast to grow business to c.300 units p.a. within Fletcher Living communities and on standalone sites
Differentiated market proposition with ORAs based on 15% DMF, share of capital gains, no integrated care
Retirement but healthcare services offered through partner
Industrial • Developer of industrial sites in FB portfolio and in Auckland region leveraging in-house development expertise
Development and resource

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81 Fletcher Building Limited Investor Day Presentation | © May 2021

Residential and Development Performance improvement driven by measured growth

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EBIT ($m) [1] EBIT Margin [1] (%) and ROFE [2] (%) Key Non-financial Measures
FY19 YTD21
c.26.4%
TRIFR [3] 6.0 5.6
21.0% NPS 63 68
$145-150m
$137m Engagement 85% 80%
Carbon (‘000t) [4] 0.4 0.3
21.4% FY19 FY21F
c.19.9%
Zoned lots
5,422 4,691
under control
Units taken to profit 735 c850
FY19 FY21F FY19 FY21F
EBIT margin ROFE
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1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

2. ROFE (Return on Funds Employed) calculated based on closing funds

3. TRIFR = Total no. of recorded injuries per million man house worked, does not include Restricted Work Injuries, YTD is 10 months ended 30 April 21

4. Combined scope 1& 2 carbon emissions, YTD21 is 9 months ended 31 March 21

Fletcher Building Limited Investor Day Presentation | © May 2021

Residential

Growing to 1,000 homes p.a. in Auckland and Christchurch

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Economic
Leadership in
Market leading performance
innovation,
customer of each
sustainability,
solutions and business in
and growth via
services industry top
disruption
quartile
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Sections Available[1]

➔ Scaling the delivery of homes from 850 to over 1,000 in the next two years, with additional growth planned in subsequent years
➔ Delivering new developments across Auckland and Canterbury with focus on sites of at least 100 homes. Strong pipeline across sections, partnerships and raw land
➔ Significant value added from delivering master-planned communities at scale including land cost, procurement of civil infrastructure, product mix, public amenity

	Zoned land	Future zone land	Rural land2	TOTAL
In current possession 3,173 - 1 3,174
Unconditional contracts 720 796 1 1,517

➔ Focussing on mid-market housing where customer desire and product demand is maximised
➔ Driving innovation through use of new building materials and OSM solutions
➔ Leading industry sustainability initiatives in waste minimisation, and through our 1.5 degree home

1. A further c2,000 sections are currently under conditional agreements or final negotiation

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Fletcher Building Limited Investor Day Presentation | © May 2021

2. Rural land at Taupaki put in at 2 x land acquisitions, not as developed section

Offsite Manufacturing Speed and volume deliver benefits

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Leadership in
Market leading
innovation,
customer
sustainability,
solutions and
and growth via
services
disruption
----- End of picture text -----

➔ Over 25% of our homes now suitable for panelisation through the DfMA[1] process
➔ Delivered over 100 homes so far, with pipeline of c.200 homes into FY22, including first external customer

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➔ Advanced technology steps with incorporation of hsbCAD[2] and Pryda[3] for mid floor and truss designs

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➔ Waste minimisation and quality of product both at world class levels
➔ Additional benefits include significant reduction in build time (savings of up to six weeks per home) and increased recycling of working capital

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➔ Further scale opportunities being investigated, including façades and pods

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1. Design for Manufacture and Assembly (DfMA) is a design approach that focuses on ease of manufacture and efficiency of assembly. By simplifying the design of a product it is possible to manufacture and assemble it more efficiently, in the minimum time and at a lower cost

2. hsbCAD is a Computer Aided Design (CAD) system that converts architectural design into a production design and data without any loss of information 3. Pryda supplies design software used for creating tailored floor and trusses

Fletcher Building Limited Investor Day Presentation | © May 2021

Apartments Plan to scale up to c.300 units p.a. by FY24

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Apartment Locations (FY22-24)

➔ In response to population growth and evolving demographics, densification within New Zealand continues. This provides significant opportunities including in some of our bigger developments
➔ Pipeline has been identified and secured to scale the business to c.300 apartments a year by FY24
➔ Key driver of a growth engine that can deliver c.15% p.a. returns in future. This includes driving costs down through clever design and smart procurement
➔ Focus is on mid market product, as we do throughout the residential business
➔ Innovation through Clever Core likely to play an important part in growth of the apartments business, including the use of pods and prefabricated facades

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Northcote
Hobsonville
Panmure
Three Kings
Oranga
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Fletcher Building Limited Investor Day Presentation | © May 2021

Retirement Adding to our communities

➔ Our current communities cater to homeowners, from their first home to their last, but there are further opportunities that we have not yet explored – Retirement is an appealing next step
➔ Based on an established ORA[1] structure, but with a differentiated DMF[2] of 15% plus sharing of capital gains with residents
➔ On site shared services (residents’ lounge and communal amenity) and concierge plus regular check-ins
➔ Access to healthcare through external partner, directly contracted by the resident
➔ Resource consents lodged for Waiata Shores and Red Beach, and looking to grow delivery through FY24-25 to 100 units and c.$10-15m EBIT p.a.

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Leadership in
Market leading
innovation,
customer
sustainability,
solutions and
and growth via
services
disruption
----- End of picture text -----

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Integrated into Fletcher Living communities
All the convenience you need, nothing you don’t. No expensive shared facilities
Lower DMF and all customers share in capital gains during residence
We maintain your home and the shared spaces and take care of your basic costs
Partnership with NZ’s leading provider of in-home care provides access to help when you need it
Frequent check in with our team provides peace of mind for you and your family
Technology solutions to provide connection to family and support wellness and basic healthcare
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1. Occupational Right Agreement

2. Deferred Management Fee

Fletcher Building Limited Investor Day Presentation | © May 2021

Economic performance of each business in industry top quartile

Industrial Development Supplementing Fletcher Building properties

➔ Our Development Team has proven skills and well-developed track record from working on the FBU portfolio. This has included sales at Rocla Gailes and CCT Penrith this year
➔ Team now expanded to supplement the FB asset disposal pipeline with attractive external development opportunities
➔ Our competitive advantage is in the ability to source land and navigate the complex rezoning process of land in Auckland
➔ Continue to generate c.$25m EBIT p.a. through this business

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Fletcher Building Limited Investor Day Presentation | © May 2021

Residential and Development

Closing summary – Strong delivery of performance so far, future focused to grow

Residential Units Taken To Profit

➔ A significant base of Residential earnings which are growing and will be supplemented with:
➔ Growing Apartments business based on scaling to c.300 units p.a.
➔ Clever Core moving out of start-up mode into EBIT generation as it ramps up sales beyond 200 units p.a.
➔ Emergence of Retirement earnings as the business grows to 100+ new units p.a.
➔ Consistent Development EBIT of c.$25m p.a.
➔ Funds expected to build to c.$750m in FY22 as we reinvest in land stock and support growth opportunities

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1,200
1,000
800
600
400
200
0
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21F FY22F FY23F
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Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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Fletcher Building Limited Investor Day Presentation | © May 2021

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials Bevan McKenzie 3. Safety Wendi Croft 4. Building Products Hamish McBeath 5. Concrete Nick Traber 6. Distribution Bruce McEwen

7. Residential and Development Steve Evans 8. Construction Peter Reidy 9. Australia Dean Fradgley 10. People, Innovation and Sustainability Claire Carroll 11. Concluding Remarks and Q+A Ross Taylor

Peter Reidy joined Fletcher Building as Chief Executive of Construction in October 2018
Success in leading cultural change and delivering sustainable results across customer intensive infrastructure based businesses in sectors including transport, water, energy, tourism, construction in NZ, Australia, SE Asia and the UK
Public and private sector leadership experience

Fletcher Building Limited

Construction

Leading New Zealand Tier 1 Contractor

➔ Vertical and horizontal construction offering in New Zealand and South Pacific, with strong heritage brands
➔ Full lifecycle service offering
➔ Specialised self-perform businesses

Brands Business Units

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Buildings : Major buildings for Government, institutions and businesses throughout New Zealand – since 1909
Infrastructure : Major transport projects throughout New Zealand, including Puhoi to Warkworth, Peka Peka to Otaki and Hamilton City Edge
South Pacific : Buildings, civil & marine engineering throughout the South Pacific region – since 1946
Brian Perry Civil : Ground engineering, marine and utilities (including Three Waters) throughout New Zealand and the South Pacific
Incorporates specialist businesses Pipeworks and Piletech
Higgins: Roading specialist – building, maintaining and materials supply
Number two asphalt producer in the New Zealand market with 13 asphalt plants, bitumen distribution and storage facilities
Long-term maintenance contracts with Waka Kotahi and local authorities

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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

The Construction sector matters to New Zealand

Construction Market Size (Work Put In Place FY21)

Sector	Size	Fletcher Share
Commercial $8.5b c.2%
Infrastructure $8.9b c.13%
South Pacific $2.3b c.4%
$19.7b1 c.7%

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South Pacific
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Revenue Split

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South Pacific
8%
New Zealand
92%
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Fletcher Building Limited Investor Day Presentation | © May 2021

1. Excludes Residential and Professional Services

Construction

Positioned in growth sectors

TRANSPORT BUILDINGS SECTOR SIZE / P.A. SECTOR SIZE / P.A. $7-7.5b $8-8.5b

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THREE WATERS SECTOR SIZE / P.A. $1.5-2.0b

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➔ Highway and local road construction
➔ Road maintenance
➔ Ports / marine upgrades
➔ Airport runways

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➔ Health – hospital upgrades
➔ Defence
➔ Education – school construction
➔ Auckland Airport

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➔ Water & wastewater network upgrades
➔ Treatment plant upgrades

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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Current earnings reflective of nil margin legacy work

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EBIT ($m) [1] EBIT Margin [1] (%)
$51m
$25-30m
3.0%
c.2.2%
FY19 FY21F FY19 FY21F
----- End of picture text -----

Key Non-financial Measures

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FY19 YTD21
TRIFR [2] 6.1 4.9
NPS [3] 34 n/a
Engagement 72% 66%
Carbon (‘000t) [4] 42 33
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1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

2. TRIFR = Total no. of recorded injuries per million man house worked, does not include Restricted Work Injuries, YTD is 10 months ended 30 April 21

3. NPS survey to be distributed May 2021 for Brian Perry Civil, Higgins and South Pacific

4. Combined scope 1& 2 carbon emissions, YTD21 is 9 months ended 31 March 21

Fletcher Building Limited Investor Day Presentation | © May 2021

Construction Order book growth rebalanced to lower risk

$3.3b Order Book

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$0.5b Preferred status
-
$0.7b
New portfolio comprising
predominantly lower-risk
$2.5b
smaller projects and
maintenance contracts
$2.2b
$0.3b Legacy high-risk, lump sum D&C
HY18 FY21F
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➔ 67% of our order book comprises medium risk style contracts – including multi-year alliance contracts, programme agreements and asset maintenance
➔ Underpins 75% of forecast revenue for FY22 and 50% of FY23

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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Growth driven by lower risk contracts

FY21F Annual Revenue

Major Projects >$100m • Commercial Buildings • Roads • Water
$0.5b
$0.9b Infrastructure Services • Brian Perry Civil • Higgins • South Pacific

Sector Exposure

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23%
Private
77%
Local and Central
Government
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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Our 3-stage roadmap to create value

STRENGTHEN DELIVERY CAPABILITY AND CAPACITY

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Risk management platform and field tools
Specialised plant and assets
Upskilling people
Self-perform resources

BUILD CAPABILITY AROUND GROW ASSET LIFECYCLE GROWTH CUSTOMERS PRODUCTS + SERVICES

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Diversifying revenue, offering a broader range of integrated services and technology

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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Strengthen delivery capability and capacity

Specialised Plant

➔ Asphalt
➔ Marine
➔ Trenchless pipelines

People Development

➔ Critical skills
➔ Apprentices
➔ Diversity

Digital Platforms

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➔ Training & Development

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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Build capability around growth customers

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Watercare Enterprise Model AMETI Kings Road
10-year programme Eastern Busway 2, 3, 4 Fiji Roads Authority
ENTERPRISE FLETCHER ALLIANCE FLETCHER CONSTRUCT ONLY
MODEL SHARE PROJECT SHARE (VARIOUS PROJECTS)
$2.4b $1.2b $500m $240m $80m
Preferred
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Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Grow asset lifecycle products and services

Asset Management

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Bituminous Products

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100

Fletcher Building Limited Investor Day Presentation | © May 2021

Construction

Closing summary

➔ Reshaped forward order book with growth rebalanced to lower risk

➔ Legacy run-off will largely be completed by the end of FY23
➔ Strong secured revenue for FY22

➔ Investing in specialised assets, digital risk management tools, safety leadership and people development programmes

➔ Expect EBIT to be bottom of margin range (3-5% by FY22) as order book replaces nil margin legacy work

➔ Focused on creating a sustainable Fletcher Construction

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101

Fletcher Building Limited Investor Day Presentation | © May 2021

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Questions

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102

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials Bevan McKenzie

3. Safety Wendi Croft

4. Building Products Hamish McBeath

5. Concrete Nick Traber

6. Distribution Bruce McEwen

7. Residential and Development Steve Evans

8. Construction Peter Reidy

9. Australia Dean Fradgley 10. People, Innovation and Sustainability Claire Carroll 11. Concluding Remarks and Q+A Ross Taylor

Chief Executive of Australia since 2018; joined Fletcher Building in 2013. Previous roles include Chief Executive of Distribution
Internationally experienced leader in B2B and B2C, with a successful track record of growth and turnaround strategies
10 years with Wolseley-Ferguson, the world’s largest plumbing distributor; 10 years with Kingfisher, the largest DIY retailer in Europe

Fletcher Building Limited

Australia

We have well-established and leading brands that operate across manufacturing and distribution sectors

➔ Businesses of scale in specific sectors

➔ Positioned for growth across the key markets

Civil /
Business Unit Overview Residential Commercial Infrastructure • Laminex is the leading manufacturer and distributor of decorative surfaces and joinery products for over 80 years
• Iplex manufactures and distributes a comprehensive range of pipeline solutions
• Rocla manufacturers a range of engineered concrete solutions from pipe and precast through to railway sleepers
• The business is in divestment phase
• FI provides energy efficient & acoustic solutions to heating, ventilation and air conditioning (HVAC) markets
• Tradelink is a leading plumbing supplier of own brand and proprietary products servicing the trade plumber, large home builder and retail customer
• Oliveri Solutions is a leading manufacturer and master distributor of kitchen and bathroom products
• Stramit is a large scale steel rollformer to the residential and commercial building markets and is the country’s largest shed distributor via its Fair Dinkum Shed brand

104

Australia

Overall market outlook is expected to be stable over the next two years; strong growth in medium-term

AU Historical and Forecast Market Outlook

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Residential/ A&A (A$b)
CAGR
-1%
81
75 76 77
73
FY19 FY20 FY21F FY22F FY23F
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The Australian market has rebounded well from the impact of COVID-19

➔ Residential (60% exposure)
➔ Residential detached sector remains buoyant supported by government stimulus and low interest rates
➔ Medium to high density construction activity continues to drag on the overall residential sector
➔ Alterations & Additions remain strong in the near-term

Value of Non-Residential and Infrastructure (A$b)

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CAGR
6%
133
96 95 104 120
46 49 47 44 46
FY19 FY20 FY21F FY22F FY23F
Key: Non-Residential Infrastructure
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➔ Commercial (28% exposure) building activity remains negative in the short-term
➔
Civil / Infrastructure (12% exposure) remains buoyant in subsectors such as transportation and mining, but down in utilities

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105

Source: BIS Oxford Economics. Work done, current prices

Australia

Despite a broadly flat market, good progress made on profitable share gains

Market Size (NZ$b) and Share (%)

HY21 Revenue Weighted Sector Exposure

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$1.8b $4.2b $1.4b $0.4b $0.5b $2.6b
Laminex Tradelink & Oliveri Iplex Rocla [1] Fletcher Stramit
Insulation
Key: FBU Share Other Competitors
Market share %
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----- Start of picture text -----

12%
28%
60%
Key: Residential Non Residential Infrastructure
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Our growth strategy has seen us drive performance and deliver stronger results in key categories. This has shifted the divisional exposure to the more stable and profitable residential sector, supporting the improved quality of underlying returns

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1. Rocla – Pipes only Source: FBU Management estimates

106

Australia

The Division has evidenced material profit improvement in FY21; this will continue into FY22 and beyond as we tar et 5-7% EBIT mar in b FY23 g g y

EBIT ($m)[1]

EBIT Margin[1] (%) and ROFE[2] (%)

Key Non-financial Measures

Key Non-financial Measures	Key Non-financial Measures	Key Non-financial Measures
FY19 YTD21
TRIFR3 5.4 5.8
NPS 33 25
Engagement 64% 59%
Carbon (‘000t)4 349 263
Key Financial Efficiency Measures
	FY19	FY21F
Sales per FTE(NZD) $555k $607k
GM per FTE(NZD) $159k $181k
GMR 8.8% 12.8%
Overheads5 26.5% 25.5%
Working capital days 81.9 78.3

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c.7.6%
$100-105m
5.0%
$77m
c.3.6%
2.5%
FY19 FY21F FY19 FY21F
EBIT margin ROFE
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1. Before significant items; FY19 is adjusted for proforma IFRS16 to allow like-for-like comparison

2. ROFE (Return on Funds Employed) calculated based on closing funds

3. TRIFR = Total no. of recorded injuries per million man house worked, does not include Restricted Work Injuries, YTD is 10 months ended 30 April 21

4. Combined scope 1& 2 carbon emissions, YTD21 is 9 months ended 31 March 21

5. SG&A and WH&D

107

Australia

Quality of underlying earnings improved materially; now in growth mode

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5-7% EBIT margin by FY23 Positioned for growth FY23+

➔ Digital momentum in key businesses
➔ All businesses digitally mature by FY24-25 with digital marketplaces in place in Tradelink & Laminex
➔ Extensive network rationalisation
➔ Laminex launching new business model in FY21 under Haven brand
➔ Automation investments underway
➔ Pricing programme well established with momentum evidenced
➔ A strong multi-year pipeline of new product development, strengthening existing positions and creating additional revenue streams
➔ Segmental economic strategies driving improved gross margin
➔ Mature programmes of automation in manufacturing business units
➔ Material growth in sales and margin per FTE driving sustainable efficiency
➔ Accelerated growth of sustainable earnings driven by strong performance in margin accretive categories
➔ Vitality at record levels, NPD has momentum
➔ Specification, primary demand and aggregation in core markets
➔ Taking market share in margin accretive areas
➔ Range optimisation with exit of 15,000 individual products

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108

Laminex

Performing very well in market; gross margin now at top quartile levels, supported by sustainable low operating costs

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Gross Margin Improvement
Gross Margin improvement
170bps improvement
FY19 FY20 FY21F
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➔ Strong share growth in decorative category

Targeted segment growth

➔ Primary demand strategy driving profitable growth

➔ Vitality >11%

New product ➔ Strong performance in new décor ranges development ➔ Formica relaunch providing duel brand strategy

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Decorated Board Sales
2019 2021
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➔ Online sales >25% of total revenue, annualising at $170m+

Customer

excellence

➔ New operating model launches in June
➔ Price effectiveness strong

➔ Range rationalisation; >9,000 SKUs exited

Margin

➔ Outperform manufacturing cost indices

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109

Leadership in innovation, sustainability, and growth via disruption

Laminex

Now leading the market with best-in-class vitality and innovation

What have we done to improve performance?

What we are doing to drive growth

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➔ The strong digital offer is attracting new business
➔ Online sales at 27% of
total revenue
➔ Primary demand via our sales team is driving specification
➔ Vitality has grown materially; NPD is now >10%
➔ Dual brand strategy – Formica brand re-launch
➔ Focus and growth in our margin accretive categories like Décor are ahead of business plan

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➔ New décor ranges are
performing well and this is increasing category share and margin
➔ Expansion into adjacencies – Laminex Surround
➔ Testing alternate fibre. Successful bamboo trial
➔ Next phase of digital coming
➔ New distribution model – Haven Kitchens by Formica

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110

Laminex Laminex will launch trial stores in June this year with a market leading B2B joinery offer

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----- Start of picture text -----

YOU RESELL
PRE-ASSEMBLED
HAVEN
HIGH QUALITY,
100% IN STOCK, KITCHENS BY
RIGID CARCASS
100% OF TIME. FORMICA
KITCHENS WITH
PICK UP A TO THE END
FREE AT HOME
KITCHEN CONSUMER AT
DESIGN SERVICE
TODAY! YOUR DEFINED
PRICE AND MARGIN
Pre-Assembled Always You’re In
Quality
In Stock Control
Kitchens
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Five store trial in Victoria

Made and distributed by our manufacturing base

Sell the whole kitchen solution Oliveri / Tradelink

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111

Tradelink & Oliveri

Making pleasing progress, supported by margin expansion & efficiency gains

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Customer Mix
SME
8% [6%]
Projects
46%
Retail/other
41%
Network
builders
----- End of picture text -----

➔ 46% of total revenue is SME, up from 34%

Targeted SME plumber growth

➔ Gross margin has momentum
➔ Quote turnaround speed improved by 50%
➔ Own brand at record levels
➔ Material expansion of Oliveri brand into markets
➔ Price effectiveness

Gross margin

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➔ B2C website live and ahead of plan

Digital

➔ B2B digital plan live in FY22
➔ Strongest sales per FTE
➔ Oliveri cost to manufacture at global best-inclass levels
➔ Showroom programme complete

Operational efficiency

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Economic
Market leading performance
customer Lowest of each
solutions and delivered cost business in
services industry top
quartile
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112

Lowest delivered cost

Tradelink & Oliveri

Efficiencies evidenced through strong sales metrics, own brand sales exceeding expectations, and di ital offer launched with im rovin volumes and conversion rates g p g

What have we done to improve performance?

What we are doing to drive growth

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----- Start of picture text -----

Sales & Margin per FTE
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----- Start of picture text -----

600 180
550 160
500 140
450 120
400 100
FY18 FY19 FY20 FY21F
Sales/FTE GM/FTE
GM$
Sales $
----- End of picture text -----

Sales and margin per FTE both increasing

➔ Own brand front of wall now at 35%
➔ B2C website now live – 30% uplift in retail revenues
➔ B2B digital will be live in FY22
➔ Price effectiveness controls significantly improved
➔ SME plumber weighting of total revenue continues to grow

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----- Start of picture text -----

Own Brand Sales
FY17 FY18 FY19 FY20 FY21 YTD
% of FOW
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Higher margin own brand front of wall sales (FOW) is now 35% vs. a prior target of 25%

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113

Fletcher Insulation

Transformational change now complete; significant efficiency gains delivered; now executin rowth strate g g gy

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----- Start of picture text -----

Market leading
customer Lowest
solutions and delivered cost
services
----- End of picture text -----

➔ Direct to site model has facilitated a 35% reduction
Lower in bricks and mortar

manufacturing costs

➔ Factory of the future investment in Dandenong, VIC
➔ Best-in-class manufacturing efficiency achieved
➔ Expansion into installed solutions
Targeted segment ➔ Share gains in residential sector
growth

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----- Start of picture text -----

Glasswool Manufacture Cost Glasswool manufacture cost
FY19 FY20 FY21 YTD
$ per KG
----- End of picture text -----

➔ Pull through for upstream manufacturing
➔ 98% direct to site delivery

Operational

➔ Digital programme underway
efficiency
➔ Lowest overhead costs in its history
➔ Market beating house wrap system
➔ DIFOTIS >95%, best-in-class performance ➔ New product launches now in market

Customer leading

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114

Iplex Pleasing progress in strategic areas of growth set against a slow project market; simplified business model driving increased earnings

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➔ Strategy relaunch to focus on core strengths and
Targeted margin accretive categories
segment focus
➔ Range rationalisation to focus on where we can win
➔ Investment in automation and latest technologies

Manufacturing excellence

➔ Manufacturing site optimisation
➔ Exit of low margin product categories

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Customer

excellence

New product development

➔ Digitisation programme underway via Iplex Connect
➔ Primary demand team supporting municipal bodies and asset owners
➔ Direct to site service provides competitive advantage and improved experience
➔ Investment in black max product range
➔ Lightweight piping solutions for improved sustainability & safety

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----- Start of picture text -----

Product (SKU) Count by Location
SKU Count
11% reduction
FY19 FY21
A 6% reduction in SKUs leading to
an 11% reduction in required stock holdings
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115

Stramit Material improvement in profitability YoY; performed well in its key strate ic rowth areas g g

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➔ Continued manufacturing efficiency programme driving highest ever production volumes

Operational efficiency

➔ Automation to support growth
➔ Core growth with reduced reliance on project volumes

Targeted segment

➔ Strong momentum in margin accretive Sheds and Doors
growth

➔ Launched SharpLine® roofing and New product InfinitiLine® gutters development

➔ Strong pipeline of new products
➔ New Stramit website

Customer

➔ New Fair Dinkum Shed website driving lead generation

excellence

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----- Start of picture text -----

Sheds Revenue
34% increase
20192019 20212019 2019 2020 2020 2020 2020 2021 2021
$m
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116

Australia Closing summary

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----- Start of picture text -----

Strong Momentum in Growing share 30%
Digitisation Commitment to
operational vitality & profitably & carbon reduction
at pace zero harm
discipline innovation sustainably by 2030
----- End of picture text -----

➔ We are on track for 5-7% EBIT margin by FY23. And we are well set for profitable growth
➔ These returns are within our span of control in a broadly flat market and should we see more robust market activity levels, coupled with our future growth plans, further gains will be delivered

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Questions

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118

Agenda

1. Introduction, Fletcher Building Overview Ross Taylor

2. Group Financials Bevan McKenzie

3. Safety Wendi Croft

4. Building Products Hamish McBeath

5. Concrete Nick Traber

6. Distribution Bruce McEwen

7. Residential and Development Steve Evans

8. Construction Peter Reidy

9. Australia Dean Fradgley 10. People, Innovation and Sustainability Claire Carroll 11. Concluding Remarks and Q+A Ross Taylor

Fletcher Building’s Chief People & Communications Officer since April 2018, having joined the company in 2013. Held previous People roles with Construction and Building Products
Successful development and delivery of comprehensive People strategies, leading significant organisational change at Fletcher Building, focused on supporting performance, diversity and talent development

Fletcher Building Limited

Sustainability

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Fletcher Building Limited

Improving the world around us through smart thinking, simply delivered

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----- Start of picture text -----

BE THE LEADER IN
MAKING SUSTAINABLE
BUILDING PRODUCTS
CAREFUL MANAGEMENT
OF OUR RESOURCES
AND EMISSIONS
TRANSPARENT
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE REPORTING
PARTNER WITH OUR
SUPPLY CHAIN TO
SUPPORT OUR DELIVER SUSTAINABLE
PEOPLE AND OUR OUTCOMES
COMMUNITIES
BUILD HEALTHY HOMES
AND DELIVER SUSTAINABLE
INFRASTRUCTURE
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121

We know where it comes from… it’s a big opportunity

Group Carbon Emissions

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GBC 57%
Electricity AU 22%
Diesel 9%
Process heat 8%
Electricity NZ 3%
Other 2%
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GBC:

➔ Clinker 36%
➔ Coal 21%

Electricity Australia:

➔ Significant contributor due to carbon intensity of grid, in particular coal in Victoria

Diesel:

➔ Mainly Higgins and Winstone Aggregates

Process heat:

➔ Mainly WWB, Fletcher Insulation, Laminex Australia, PCC

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122

… and we have a plan to take advantage of it…

Our Carbon Reduction Roadmap: Highest Emitters 87% of Total Emissions

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----- Start of picture text -----

1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
Golden Bay Cement Laminex AU Fletcher Insulation Iplex AU (excluding Rocla)
Winstone Wallboards Total|All FB Target|All FB Target|Major emitters
e)
2
Emissions (tCO
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123

… from high impact projects

Key high impact initiatives to drive carbon reduction by FY30

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----- Start of picture text -----

-28% -28%
GBC
GBC
Electricity AU
Electricity AU
Diesel
Diesel
Process heat Process heat
FY18 FY30
----- End of picture text -----

GBC: -15%

➔ Alternative fuels and supplementary cementitious materials

Electricity Australia: -9%

➔ Green electricity and rooftop solar

Diesel: -3%

➔ Transition to Electric Vehicles (EV)

Process heat: -1%

➔ Gas and LPG transition to electricity & biomass

Other: -2%

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124

… and we measure, disclose and verify our sustainability performance

Major product lines now hold EPDs

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Listed in the Asia-Pacific index

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Workforce participation disclosed and gender parity review completed

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Most improved NZ company last year

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125

Innovation

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Fletcher Building Limited

Leadership in innovation, sustainability, and growth via disruption

Innovation at Fletcher Building – three key pillars

We bring the outside in Innovation is a process and discipline Creating an Explorers Mindset and partner with disruptors

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Innovation involves the whole organisation, from the bottom-up, top-down, and outside-in

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127

Leadership in innovation, We bring the outside in and sustainability, partner with disruptors and growth via disruption

Pillar 3: Ecosystem scans

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----- Start of picture text -----

Clean Concrete
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----- Start of picture text -----

Environmental Sustainability
----- End of picture text -----

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----- Start of picture text -----

Modular / Offsite Construction
----- End of picture text -----

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Distribution Transport & Logistics
----- End of picture text -----

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128

Leadership in innovation, sustainability, and growth via disruption

We bring the outside in and partner

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700+

150+

start-ups / tech innovators mapped

executives and senior leaders engaged

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We bring the outside in and partner with disruptors

Lasting Outcomes

➔ Emerging outside technology is being implemented today in our BUs as a result of these activities
➔ We are gaining value by leveraging what already exists in the market

sessions with startups, VCs, and innovators

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20 pilots and partnerships progressed

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➔ Our future pipeline is more resilient and there are real opportunities to become a disruptor in our market

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129

People

Fletcher Building Limited

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Our people are integral to delivery of our strategy

Vision		To be the leader in New Zealand and Australian building products and solutions	To be the leader in New Zealand and Australian building products and solutions
Purpose		Improving the world around us through smart thinking, simply delivered
Strategic Goals	Zero injuries every day	Market leading customer solutions and services	Lowest delivered cost Economic performance of each business in industry top quartile	Leadership in innovation, sustainability, and growth via disruption
Our People	Focused on operational excellence	Global expertise – locally delivered	Obsession for customers Strive for growth and innovation	Driven by purpose and values
Group	Zero Serious Injuries	NPS ≥ 55	Engagement ≥ 80% 30% Carbon Reduction
Measures	DIFOTIS ≥ 98%	EBIT Margin ≥ 10%	Cash Conversion ≥60%	ROFE ≥15%
Values

131

Driven by our values

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----- Start of picture text -----

Vision To be the leader in New Zealand and Australian building products and solutions
Purpose Improving the world around us through smart thinking, simply delivered
Economic performance Leadership in innovation,
Strategic Market leading customer
Zero injuries every day Lowest delivered cost of each business in sustainability, and
Goals solutions and services
industry top quartile growth via disruption
Our Focused on Global expertise – Strive for growth Driven by purpose
Obsession for customers
People operational excellence locally delivered and innovation and values
Zero Serious Injuries NPS ≥ 55 Engagement ≥ 80% 30% Carbon Reduction
Group
Measures
DIFOTIS ≥ 98% EBIT Margin ≥ 10% Cash Conversion ≥60% ROFE ≥ 15%
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132

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Questions

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133

Agenda

1. Introduction, Fletcher Building Overview	Ross Taylor
2. Group Financials	Bevan McKenzie
3. Safety	Wendi Croft
4. Building Products	Hamish McBeath
5. Concrete	Nick Traber
6. Distribution	Bruce McEwen
7. Residential and Development	Steve Evans
8. Construction	Peter Reidy
9. Australia	Dean Fradgley
10. People, Innovation and Sustainability	Claire Carroll
11. Concluding Remarks and Q+A	Ross Taylor

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Fletcher Building Limited

Our strategy positions us well to drive shareholder value in the short- and long-term

Vision To be the leader in New Zealand and Australian building products and solutions Purpose Improving the world around us through smart thinking, simply delivered Economic performance Leadership in innovation, Strategic Market leading customer Zero injuries every day Lowest delivered cost of each business in sustainability, and Goals solutions and services industry top quartile growth via disruption

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01 02 03 04 05 Focus Strong Significant nearGlobal and Well-positioned for financial term “self-help” regional macro long-term and positioning value creation trends are sustainable growth opportunity supportive

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135

Delivering performance & growth against robust NZ+AU macro backdrop Driving growth through operational improvement and growth initiatives; well-positioned through to FY23+

FY21 FY22-23 FY23+ Strong performance improvements Driving growth through operational Well-positioned through to FY23 and achieved across all financial metrics improvement and growth initiatives beyond with key focus areas for growth over the last three years to deliver c.10% EBIT margin ➔ FY21 EBIT before significant items guidance ➔ Australia margins lift to 5-7% ➔ Strong investment in both growth opex of $650-665m and capex ➔ Construction margins lift to 3-5% as order ➔ Improved EBIT[1] margin, FY21F: c.8.2% book replaces nil margin legacy work ➔ Core: product adjacencies, decarbonisation, customer ecosystems, modern ➔ Strong FY21F Underlying trading cash ➔ NZ Core margins expand slightly as manufacturing flows[2] of $850-900m adjacencies add operating leverage and continue to drive BU performance ➔ Residential & Development: scale base ➔ FY21F ROFE[3] margin of c.18% business, offsite manufacturing, ➔ Residential & Development targeting strong apartments ➔ Strong balance sheet; dividends and share top-line growth at >15% margin buyback

➔ Strong investment in both growth opex and capex
➔ Core: product adjacencies, decarbonisation, customer ecosystems, modern manufacturing
➔ Residential & Development: scale base business, offsite manufacturing, apartments
➔ Digital and backbone systems

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1. Before significant items

2.Trading Cash-Flow = EBITDA less Lease Principal Payments & Lease Interest Paid plus / minus Working Capital Movements. Underlying trading cash-flow excludes FCC Legacy Cash-Flow and Significant Items.

3. Return on Funds Employed (ROFE) is EBIT to average funds (net debt and equity less deferred tax asset)

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Questions

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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.

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. You should not consider any of these statements in isolation from, or as a substitute for, the information provided in the Financial Statements 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 gives 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 contains not only information about the historical performance of Fletcher Building and its operations, but also some 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.

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FLETCHER BUILDING LIMITED — Investor Presentation 2021

64902_rns_2021-05-25_4550e0cf-8f5e-4bde-89e9-135f4fe9ca66.pdf

Fletcher Building announces on-market share buyback, updates FY21 EBIT guidance to $650m to $665m

#Ends

Fletcher Building Investor Day May 2021

Agenda

Welcome and introduction

Presentations from our Executive Team members

Operational Heads presenting

HAMISH

Functional Heads presenting

Functional Heads

Adjustment of viewing panes and Q&A functionality

Mobile device Q&A functionality

Agenda

Significant NZ and Australia player, focused in the building products and distribution sectors

Leading NZ sector exposures with strong market positions and brands

Australia position smaller but scale in specific sectors

Having reset the business, delivering performance in FY21, we are strongly positioned for ongoing performance and growth

Our strategy is aligned to this next phase of ongoing performance & growth

Focus on achieving our vision, anchored by our purpose and values

Our strategic goals driving us to achieve performance and growth

Our people are integral to delivery of our strategy

Key group measures are aimed to deliver financial and non-financial performance and growth

Confident this strategy positions us well to drive shareholder value in the short- and long-term

NZ markets look favourable and “stronger for longer”

NZ Historical and Forecast

NZ Historical and Forecast

Australia macro backdrop supportive for growth

AU Historical and Forecast

AU Historical and Forecast

AU Historical

FY21 Forecast and share buyback

Near-term outlook

Pathway to c.10% EBIT margin in FY23

Positioned for earnings growth to FY23 and beyond

Agenda

Overview

Margins

EBIT Margin[1] (%)

Pathway to 10% in FY23

Margins

Efficiency programs have delivered material cost reductions, especially in Core Divisions; focused on drivin additional o eratin levera e off this base g p g g

Core Divisions: Overhead Costs % of Revenue[1]

Investment

Investment

New WWB plant replaces end-of-life asset and provides growth capacity

Investment

Residential and Development Funds Invested: FY21F-22F ($m)

Investment

We are making targeted OPEX spend to support delivery of organic growth initiatives

Return on investment

ROFE[1] (%) and Closing Operating Funds ($b)

Cash flow

Working capital target of 5-day improvement in Core Divisions delivered ahead of plan

Working Capital[1] Receivables & Inventory – Core Divisions (days)

Cash flow

Underlying cash generation of the business has been strong

Underlying Trading Cash-Flow[1] ($m)

Funding

Debt drawings ($m)

Debt maturity profile ($m)

Leverage

Leverage (Net Debt / EBITDA)

Capital return

Dividends

FY21 EBIT Guidance

Summary

Questions

Agenda

Safety is a key element of our Strategy

Safety

The five pillars of our Protect strategy

Questions

Agenda

Building Products The leading New Zealand building products solutions provider

Business Unit Overview

Building Products

Leading market positions across the building products, pipes and steel verticals

FLETCHER BUILDING LIMITED Investor Presentation 2021