Fletcher Building : 2021 Annual Results Presentation

Fletcher Building Full Year Results to 30 June 2021

18 August 2021

Fletcher Building Limited

Important Information

This presentation has been prepared by Fletcher Building Limited and its group of companies ("Fletcher Building") for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it.

This presentation provides additional comment on the 2021 Financial Results dated 18 August 2021. As such, it should be read in conjunction with and subject to the explanations and views given in that document. Unless otherwise specified, all information is for the year ended 30 June 2021.

In certain sections of this presentation, Fletcher Building has chosen to present certain financial information exclusive of the impact of significant items. A number of non-GAAP financial measures are used in this presentation which are used by management to assess the performance of the business and have been derived from Fletcher Building's financial statements for the 12 months ended 30 June 2021. You should not consider any of these statements in isolation from, or as a substitute for the information provided in the Financial Statements for the 12 months ended 31 December 2021, which are available at www.fletcherbuilding.com.

The information in this presentation has been prepared by Fletcher Building with due care and attention, however, neither Fletcher Building nor any of its directors, employees, shareholders nor any other person given any representations or warranties (either express or implied) as to the accuracy or completeness of the information and to the maximum extent permitted by law, no such person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.

This presentation may contain forward looking statements, that is statements related to future, not past, events or other matters. Forward looking statements may include statements regarding our intent, belief or current expectations in connection with our future operating or financial performance, or market conditions. Such forward looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks and uncertainties, including material adverse events, significant one- off expenses and other unforeseeable circumstances. There is no assurance that results contemplated in any of these projections and forward looking statements will be realised. Actual results may differ materially from those projected. Except as required by law, or the rules of any relevant stock exchange or listing authority, no person is under any obligation to update this presentation at any time after its release or to provide further information about Fletcher Building.

The information in this presentation does not constitute financial product, legal, financial, investment, tax or any other advice or a recommendation.

Page 2 | Fletcher Building Limited Full Year Results Presentation | © August 2021

Agenda

1.	Results Overview	Ross Taylor
2.	Financial Results	Bevan McKenzie
3.	Markets and Divisions	Ross Taylor
	New Zealand Operations
	- Building Products	Hamish McBeath
	- Distribution	Bruce McEwen
	- Concrete	Nick Traber
	- Residential and Development	Steve Evans
	- Construction	Peter Reidy
	Australia Operations	Dean Fradgley
4. Outlook	Ross Taylor

Fletcher Building Limited

FY21 performance delivered

Delivering on strategy, strong financial performance and returns to shareholders

Performance And Growth

• Delivered strong financial performance and ongoing operational improvements in FY21:
• • EBIT before significant items $669m
  • EBIT Margin up 100bps from FY191 to 8.2%
  • Net earnings attributable to shareholders $305m
  • Strong cash generation and strong balance sheet
• Capital returns delivered in FY21:
• • Final Dividend of 18.0 cents per share, resulting in total FY21 dividends of 30.0 cents per share
  • On-marketshare buyback underway
• Solid outlook with ongoing momentum and positive market backdrop:
• • Forward indicators point to robust volumes
  • Sustainable base to drive ongoing performance improvements and growth

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1. FY19 is a pro forma number adjusted for discontinued operations and IFRS16 to allow for like-for-like comparison

FY21 results at a glance

Strong growth in earnings, margins and returns

			Revenue ($b)
8.3	7.3	8.1
2.9	2.7	2.7
1.6	1.3	1.3
3.8	3.3	4.1
			FY19		FY20		FY21
			NZ		Construction		Australia

EBIT Margin1 (%)

		8.2%
7.2%
	2.2%
FY192	FY20	FY21

	EBIT1 ($m)		FY21 trading highlights
598		669	➔ Strong revenue in businesses exposed to NZ residential, partly
		offset by softer AU commercial and civil markets
			➔ Earnings and margins up strongly: reflects impact of efficiency
	160		programmes and targeted investments in growth
FY192	FY20	FY21	➔ Businesses have effectively managed supply constraints and input
			cost pressures
	ROFE1,3 ($m)	➔ ROFE up strongly to 18.6%
		18.6%
13.3%
	3.7%
	FY20
FY19 2	FY20	FY21

Page 5 | Fletcher Building Limited Full Year Results Presentation | © August 2021

1. Before significant items
2. FY19 is a pro forma number adjusted for discontinued operations and IFRS16 to allow for like-for-like comparison
3. Return on Funds Employed (ROFE) is EBIT excluding significant items to average funds (net debt and equity less deferred tax asset)

Note: Measures before significant items are non-GAAP measures used by management to assess the performance of the business and have been derived from Fletcher Building Limited's financial statements for the period ended 30 June 2021. Details of significant items can be found in note 2.1 of the financial statements