Fletcher Building FY22 Half Year Results and Dividend

Half Year Results15 February 2022FBUMaterials

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Fletcher Building Limited
Fletcher Building
Half Year Results to
31 December 2021
16 February 2022

Important Information
ThispresentationhasbeenpreparedbyFletcherBuildingLimitedanditsgroupofcompanies(“FletcherBuilding”)forinformationalpurposes.Thisdisclaimerappliestothis
documentandtheverbalorwrittencommentsofanypersonpresentingit.
Thispresentationprovidesadditionalcommentonthe2022InterimFinancialResultsdated16February2022.Assuch,itshouldbereadinconjunctionwithandsubjecttothe
explanationsandviewsgiveninthatdocument.Unlessotherwisespecified,allinformationisforthehalfyearended31December2021.
Incertainsectionsofthispresentation,FletcherBuildinghaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificantitems.Anumberofnon-GAAP
financialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceofthebusinessandhavebeenderivedfromFletcherBuilding’sfinancial
statementsforthesixmonthsended31December2021.Youshouldnotconsideranyofthesestatementsinisolationfrom,orasasubstitutefortheinformationprovidedinthe
FinancialStatementsforthesixmonthsended31December2021,whichareavailableatwww.fletcherbuilding.com.
TheinformationinthispresentationhasbeenpreparedbyFletcherBuildingwithduecareandattention,however,neitherFletcherBuildingnoranyofitsdirectors,employees,
shareholdersnoranyotherpersongivenanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessoftheinformationandtothemaximum
extentpermittedbylaw,nosuchpersonshallhaveanyliabilitywhatsoevertoanypersonforanyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arising
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Thispresentationmaycontainforwardlookingstatements,thatisstatementsrelatedtofuture,notpast,eventsorothermatters.Forwardlookingstatementsmayinclude
statementsregardingourintent,belieforcurrentexpectationsinconnectionwithourfutureoperatingorfinancialperformance,ormarketconditions.Suchforwardlooking
statementsarebasedoncurrentexpectations,estimatesandassumptionsandaresubjecttoanumberofrisksanduncertainties,includingmaterialadverseevents,significantone-
offexpensesandotherunforeseeablecircumstances.Thereisnoassurancethatresultscontemplatedinanyoftheseprojectionsandforwardlookingstatementswillbe
realised.Actualresultsmaydiffermateriallyfromthoseprojected.Exceptasrequiredbylaw,ortherulesofanyrelevantstockexchangeorlistingauthority,nopersonisunderany
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Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceorarecommendation.
Page 2| Fletcher Building Limited Half Year Results Presentation| © February 2022

Fletcher Building Limited
Agenda
1. ResultsOverview and MarketsRoss Taylor
2.Financial ResultsBevan McKenzie
3. Divisions
-Building ProductsHamish McBeath
-DistributionBruce McEwen
-ConcreteNick Traber
-AustraliaDean Fradgley
-Residential and DevelopmentSteve Evans
-ConstructionPeter Reidy
4.OutlookRoss Taylor

HY22 performance up year on year
Strong second quarter performance, once COVID lockdowns eased, shows improved operating performance is enduring
➔Financial performance and growth delivered in the first half:
➔EBIT before significant items $332m, up 3%
➔Solid Group EBIT
1
Margin of 8.2%, Net earnings attributable to shareholders $171m, up 41%
➔Strong balance sheet; solid cash flows partly offset by some inventory rebuild & housing investment
➔First half capital returns delivered:
➔Interim Dividend of 18.0 cents per share, fully imputed
➔On-market share buybackunderway; 1/3
rd
through programme
➔Second quarter performance shows operating performance improvements are on track and
enduring:
➔2Q22 EBIT
1
of $264m up 73% on 2Q21
➔2Q22 EBIT
1
margin of 11.8% vs 7.9% in 2Q21
Ongoing
Performance
Page 4| Fletcher Building Limited Half Year Results Presentation| © February 2022
1. Before significant items

Well positioned for growth in FY22 and beyond
COVID risks easing, expect operational performance improvements to feature more directly in our earnings
➔Customers & forward indicators point to ongoing strong
volumes
➔Strong pricing disciplines to cover inflation increases
➔Cash and targeted working capital investments into the
business as flagged
➔Concrete & Distribution on track to deliver short term
margin targets earlier than expected
➔Expect ongoing improvements across balanced scorecard
➔Expect EBIT margins c. 9.5% in 2H22
(up c. 230 bps from 7.2%
1
in 2H21)
➔FY22 Full Year EBIT
2
expected to be c. $750m
(excl. risk of Omicron wave in New Zealand of c.$25m-$50m)
1.Markets look very robust well into the future
2.COVID impacts start to ease –no lockdowns, open borders
3.On track to deliver group EBIT margins in FY23 of c. 10%
4.Maturing investment pipeline to drive growth past FY23:
FY22 operational performance
Page 5| Fletcher Building Limited Half Year Results Presentation| © February 2022
Longer term growth
➔Significant extra capacity in: Plasterboard, Insulation and
Laminex NZ wood fibre based products
➔Digital focus and network expansionin Distribution
➔Low carbon binder & concrete: scale up alternative fuels
& raw materials, & SCM, expand solutions offering
➔Scaling Laminex Australia’s innovative suite of new product offers
& Haven Kitchens; extra Insulation capacity
➔Resigrowth in housing, apartments, retirement offering & off-site
manufacturing
➔FCC benefiting from its higher margin order book
1. Excluding Industrial Development to show on a like-for-like basis
2. Before significant items

v
HY22 results at a glance
Second quarter momentum in earnings, margins and returns following first quarter lockdowns
1. Before significant items
2. Return on Funds Employed (ROFE) is EBIT excluding significant items to average funds (net debt and equity less deferred tax asset)
Note: Measures before sig items are non-GAAP measures used by management to assess the performance of the business & have been derived from
Fletcher Building Limited’s financial statements for the period ended 31 December 2021. Details of sig items can be found innote 2.1 of the financial statements
Page 6| Fletcher Building Limited Half Year Results Presentation| © February 2022
➔Revenue and EBIT up half on half despite large 1Q22 COVID impacts
➔Revenue up 2% overall reflecting solid second quarter rebound
across the Group as restrictions eased
➔HY22 EBIT up 3% & includes Industrial Development sales of $47m
➔Almost all NZ businesses shut down for up to five weeks in 1Q22
resulting in c.$300m lost revenue and reduced EBIT by c.$100m;
Australia 1Q22 restrictions impacted EBIT by c.$5m
➔2Q22 YoY EBIT up 43% (excl. Ind. Devt) through strong BP, Concrete,
Distribution & Australia
➔2Q22 EBIT margin 11.8% (10.2% excl. Ind. Devt) providing good
momentum into 2H22
EBIT Margin
1
(%)
HY21HY22
Q1Q2
ROFE
1,2
($m)
HY22 trading highlights
EBIT
1
($m)
Revenue ($b)
4.0
4.1
323
332
HY21HY22
Q1Q2
HY21 8.1%
1Q212Q211Q222Q22
6.7%
18.7%
HY21HY22
HY22 8.2%
11.8%

332
87
107
122
16
HY22 EBITResi & Dev'tInventoryOtherHY22 Trading Cash
Flow
HY22 results at a glance
Cash flows applied to Resiinvestment & inventory; continued strong balance sheet driving ability to execute strategy
1. Other includes Debtors, Creditors, Provisions, Tax, Other non-cash & Leases
2. HY21 is restated = HY21 reported adjusted for Cloud Computing Arrangements. HY21 reported Trading Cash Flow was $373m
Page 7| Fletcher Building Limited Half Year Results Presentation| © February 2022
HY22 use of Cash Flows ($m)
➔Trading cash flows invested into pipeline of Residential housing
and inventory rebuild (supply into strong market and higher
inventory pricing) for surety of supply to customers
➔Net debt increased as expected: driven by working capital rebuild,
capex and capital management partly offset by earnings
➔Balance sheet remains strong: $1.3bn liquidity, leverage 0.4x
Leverage (Net Debt/EBITDA)
0.2x
0.4x
FY21HY22
HY22 trading highlights
1
Trading Cash Flow ($m)
369
87
HY21HY22
2

HY22 results at a glance
Interim dividend of 18.0 cents per share declared
Page 8| Fletcher Building Limited Half Year Results Presentation| © February 2022
23.7
26.3
HY21HY22
Interim Dividend (cps)
➔Net Earnings up strongly
➔Significant Items lower YoY, charges of $43m mainly relating to
currency translation reserve from Rocla divestment
➔Interim dividend of 18.0 cents per share, fully imputed, to be paid
on 7 April 2022
➔Up to $300m on market share buyback from June; 15.0m shares
repurchased as at 31 Dec 21 for $107m
EPS (cps)
EPS (before sig items) (cps)
14.7
21.0
HY21HY22
121
171
HY21HY22
Net Earnings ($m)
HY22 trading highlights
12.0
18.0
HY21HY22

Balanced Scorecard
Good progress continues on driving safety culture and lowering our carbon emissions
1. TRIFR = Total no. of recorded injuries per million hours worked. Does not include Restricted Work Injuries
2. Carbon Emission Intensity = FBU CO
2
Tonnes for every $1m or revenue. ISO 14064-1
3. CY21 = Calendar Year 2021, 12 months ended 31 December 2021
Page 9| Fletcher Building Limited Half Year Results Presentation| © February 2022
Safety: Good progress continues
Total Recordable Injury
Frequency Rate
1
5.2
5.7
5.0
4.2
FY19FY20FY21HY22
➔TRIFR well below industry average
➔Biannual Safety Perception Survey: 90% of senior leaders believe
that ‘all injuries are preventable’ (up from 54% in July 2019)
➔FY22 focus: developing front line, monitoring critical risks & controls
Sustainability: Driving 30% lower carbon from FY18
1,238
1,147 1,147
1,145
1,073
149
138
157
141
131
-
50
100
150
200
-
500
1,000
1,500
2,000
FY18FY19FY20FY21CY21
93%
sites
injury free
CO
2
Emissions
(‘000 Tonnes)
CO
2
Intensity
Carbon (CO
2
) Emissions (‘000 Tonnes) and Carbon Emission Intensity
2
➔>10% sustainable reduction in emissions from FY18 through
significant reduction in coal use in cement operations & reduced
electricity in Australia
➔c. 45% of our revenue from products we manufacture are products
that hold independent sustainability certification
➔Maintained DJ Sustainability
TM
Asia-Pacific Index inclusion
3

NZ markets -strong demand continues
Industry capacity constraints mean that work put in place is forecast to keep increasing while consents ease
Historical and Forecast
Residential (47% of NZ FB revenue) activity expected to remain
strong for medium term:
➔Consents forecast to ease from recent highs as interest rate
increases/lending restrictions impact, but even with this,
consents still expected to be above the approximate industry
capacity beyond FY23
➔Work put in place projected to continue to increase and stay
elevated as the backlog of orders and consents works
through the industry
➔This is anecdotally being confirmed through our own
customer base; many home builders’ order books are full for
12-18 months, and orders into early civil/infrastructure work
for residential development remains very strong
Page 10| Fletcher Building Limited Half Year Results Presentation| © February 2022
30,000
35,000
40,000
45,000
50,000
FY19FY20FY21FY22FFY23FFY24F
Residential Consents (#)
15.6
15.2
18.7
22.1
24.0
21.9
FY19FY20FY21FY22FFY23FFY24F
Residential WPIP ($b)
Market forecast
NZ Capacity
(FBU est.)
Source: MBIE (National Construction Pipeline Report 2021); Stats NZ; Infometrics
WPIP = Work Put In Place

NZ markets -strong demand continues
Committed project pipelines indicates ongoing growth across both infrastructure & commercial sectors to beyond FY23
Historical and Forecast
Commercial & Infrastructure WPIP ($b)
Page 11| Fletcher Building Limited Half Year Results Presentation| © February 2022
8,634
9,006
8,449
10,244
9,855
9,044
9,061
9,462
11,374
11,883
FY20FY21FY22FFY23FFY24F
CommercialInfrastructure
Source: Stats NZ; Infometrics
WPIP = Work Put In Place
➔Infrastructure work put in place (26% of NZ FB revenue)
forecast to grow strongly as committed government pipeline of
projects moves into the physical construction phase
➔Commercial (27% of NZ FB revenue) work put in place forecast
to grow in FY23 as multiple build-types (esp. health, education
and factories) move into the construction phase
➔Anecdotally, COVID disruption has delayed progress on present
projects and the start of new planned works creating a future
backlog overlay across the forecasts into FY23 and beyond

Australia markets -strong demand continues
Work done is forecast to continue to grow across all sectors
Source: BIS Oxford Economics
1. A&A = Additions and Alterations
Commercial and Infrastructure Work
Done (A$b)
49.7
47.4
50.5
56.8
61.5
90.7
91.1
105.6
124.1
134.2
FY20FY21FY22FFY23FFY24F
CommercialInfrastructure
Residential Work Done (A$b)
Page 12| Fletcher Building Limited Half Year Results Presentation| © February 2022
72.8
74.6
88.1
106.4
115.9
FY20FY21FY22FFY23FFY24F
Approvals (#)
100,000
150,000
200,000
250,000
FY19FY20FY21FY22FFY23FFY24F
Historical and Forecast
Strong Residential (62% of AU FB revenue) market forecast to
continue to grow
➔Strong consenting levels are yet to fully flow through to work
put in place, as supply chain issues and COVID restrictions have
slowed the industry significantly for the last 12 months
➔Residential work done across both A&A
1
and new dwellings is
forecast to grow strongly off the back of the natural consenting
lag, and the committed backlog starting to flow through
Very strong outlook for infrastructure (11% of AU FB revenue)
supported by government investments
Sustained improvement of forward market activity in commercial
(27% of AU FB revenue) with value of approvals up 12% for year
ended 31 Dec 21, increases across multiple types of commercial
activity, strong FB customer orderbook in pipes

1. HY21 is restated = HY21 reported adjusted for Cloud Computing Arrangements. HY21 reported EBITDA was $503m
2. Foreign Currency Translation Reserve
Income Statement
Uplift in EBIT, Net Earnings, and Dividend reflect strong performance to offset impact of COVID lockdowns
NZ$m
Dec 2020
6 months
restated
1
Dec 2021
6 months
reported
Revenue3,9874,064
EBITDA499
1
504
EBIT before significant items323332
Significant items(86)(43)
EBIT237289
Lease interest expense(33)(30)
Funding costs(23)(22)
Tax expense(57)(63)
Non-controlling interests(3)(3)
Net earnings121171
Basic earningsper share before significant items (cents)23.726.3
Basic earningsper share (cents)14.721.0
Dividends per share (cents)12.018.0
Page 14| Fletcher Building Limited Half Year Results Presentation| © February 2022
➔1Q significantly impacted by COVID lockdowns, mainly in NZ
➔2Q materially ahead of prior year, reflects ongoing performance
improvement and growth across the Group
➔Significant items: reclassifying of FCTR
2
on sale of Rocla in AU
➔Dividend of 18cps, fully imputed, 68% pay-out ratio, reflects strong
operating performance and positive outlook
➔HY21 and HY22 reported in line with IFRIC decision on Cloud
Computing Arrangements. Virtually nil impact on HY21 EBIT,
c. $(2)m on HY22 EBIT. Expect c. $(10)m impact on FY22 EBIT from
digital investments, mainly Distribution, Australia & Construction
HY22 income statement

104
151
22
27
26
50
12
6
45
2Q212Q222Q212Q222Q212Q222Q212Q22
EBIT before significant items
Strong 2Q result with EBIT +43% YoY (ex Ind. Devt), reflecting the Group’s performance momentum
➔1Q22:NZ full shutdown of operations for up to 5 weeks, c. $(100)m EBIT impact; AU rolling regional restrictions, c. $(5)m impact onEBIT
➔2Q22:Group –EBIT up +43% YoY (excl. Ind. Devt), driven by revenue +10% YoY and GP% + 60bps
BP, Concrete, Distn–revenue +21% and EBIT +45% YoY: strong volumes, share gains, pricing disciplines to more than offset cost inflation
AU –revenue +6% and EBIT +23% YoY
2
: good pricing disciplines and cost management
Resi& Devt–strong house prices driving higher margins & earnings in Residential, plus two Ind. Devt transactions completed in 2Q
FCC–ongoing productivity impacts from COVID restrictions on site, pursuing client variations
Page 15| Fletcher Building Limited Half Year Results Presentation| © February 2022
2Q EBIT
1
Key Drivers ($m)
Building Prod., Concrete, Distn.Australia
2
Resi& Devt
3
Construction
4
95
1.Before significant items
2.Excludes Rocla divested in August 2021
3.Includes revaluation gain of $9m and includes Apartments and Clever Core
4.Prior to elimination of intra-Group margin on Winstone Wallboards plant
Industrial
Development
Residential
Group 2Q EBIT
1
($m)
Group
153
219
2Q212Q22
Ind. Dev’t
264
45
+43%

EBIT Margin
Strong 2Q result with margins +230bps YoY (ex Ind. Devt), reflecting price discipline & operating leverage
➔Group –EBIT% up 230bps to 10.2% (excl. Ind. Devt); includes GM% +60bps (price > cost) and operating leverage on fixed cost base
➔BP, Concrete, Distn –GM% +80bps, EBIT% +230bps; strong volumes and effective pricing disciplines to offset input cost inflation
➔AU –GM% steady, EBIT% +60bps; good cost control; some margin dilution from lag between commodity price & sales price increases
➔Resi(excl. Devt)–margins materially higher YoY on strong house price growth and efficiencies of building at scale
➔FCC –ongoing COVID productivity impact
Page 16| Fletcher Building Limited Half Year Results Presentation| © February 2022
Group 2Q EBIT
1
Margin (%)2Q EBIT
1
Margin –Key Drivers (%)
7.9%
10.2%
2Q212Q22
10.6%
12.9%
3.5%
4.1%
16.9%
28.6%
3.7%
1.5%
2Q212Q222Q212Q222Q212Q222Q212Q22
Australia
2
Resi(excl. Devt)
3
Group
11.8% Incl.
Ind. Dev’t
1. Before significant items
2. Excludes Rocla divested in August 2021
3. Excludes $9m revaluation gain of investment property in 2Q22 and excludes Apartments and Clever Core
4. Prior to elimination of intra-Group margin on Winstone Wallboards plant
+230
Building Prod., Concrete, Distn.
+1,170
+60
+230
bps
bps
bps
bps
Construction
4
-220
bps

Margins –outlook for 2H22
Underlying 2H22 EBIT margin expected to be c. 9.5%, strong uplift YoY; assumes no material COVID impact
Page 17| Fletcher Building Limited Half Year Results Presentation| © February 2022
Group EBIT
1
Margin (excl. Ind. Devt) (%)
Second Quarter
➔We enter 2H22 with good momentum from 2Q where margin uplift
of +230bps YoY reflected a sustained program of performance
improvement initiatives over past three years
➔2H22 Group margin expected to show similar level of YoY
progression to deliver c. 9.5% in 2H22. Firmly on track to deliver
c. 10% margins in FY23
➔Volume: 2H22 expected to be at similar levels to 2Q, with strong
pipeline of consenting activity in both NZ and AU
➔Price: continuing to target full recovery of cost inflation in products
and distribution businesses; Resihouse price growth easing though
still supportive of EBIT margins >20%
➔COVID: margin commentary above is on an underlying basis.
Omicron may have some impact in 2H22, but expected to be far
less than 1Q as no full lockdowns –impact on 2H22 EBIT may be in
the order of $(25)m-(50)m
2H22 Margin Outlook
7.9%
10.2%
2Q212Q22
7.2%
2H212H22F
c. 9.5%
Second Half
1. Before significant items
+230
bps
+230
bps

Cash flow
HY22 cash flows reflect working capital investment to rebuild inventories
Cash flow
NZ$m
Dec 2020
6 months
restated
1
Dec 2021
6 months
reported
EBIT before significant items323332
Depreciation and amortisation176
1
172
Lease principal payments and lease interest paid(124)(119)
Provisions and other19(12)
Trading cash flow before working capital movements394373
Working capital movements excl. legacy projects118(296)
Legacy projects cash flow(109)35
Significant items cash flow(34)(25)
Trading cash flow36987
Add: lease principal payments9189
Less: cash tax paid(3)-
Less: funding costs paid(33)(19)
Cash flows from operating activities424157
1. HY21 is restated = HY21 reported adjusted for Cloud Computing Arrangements. HY21 reported Depreciation and Amortisation was $180m
Page 18| Fletcher Building Limited Half Year Results Presentation| © February 2022
HY22 Cash Flows
➔Good underlying trading cash-flows, strong customer cash
collections despite COVID disruption
➔Inventory investment in HY22 follows draw down of stocks in FY21;
consistent with commitments to drive growth and support
customer service levels at time of supply chain constraints
➔Significant items cash flow relates to delayed payment of FY21
restructuring provisions and Rocla divestment costs
➔Cash tax payments expected to recommence in HY23

Cash flow working capital movements
NZ$m
Dec 2020
6 months
Dec 2021
6 months
Residential and Development50(107)
Construction excluding legacy projects6(24)
Materials and Distribution Divisions
•Debtors6435
•Inventories42(122)
•Creditors(44)(78)
Cash flow working capital movements excl. legacy118(296)
Working Capital
Targeted inventory rebuild –supporting growth and continuity of supply
Materials and Distribution Divisions –
working capital metrics (days)
As at Dec
2019
As at
Dec 2020
As at
Dec 2021
Debtors Days44.039.739.0
Inventory Days75.569.873.3
Payables Days41.639.238.5
Materials & Dist’nDivisions Total Cycle77.970.373.8
Residential & Development
➔Previously committed to a c. $200m investment in FY22 in land &
housing inventories to rebuild stocks (significant draw-down in
FY21) and to support continued growth of the housing business
➔HY22 investment of $107m consistent with this strategy
Materials & Distribution Divisions -Inventories
➔c. 40% of HY22 inventory investment is a rebuild of stocks from low
FY21 levels, plus targeted investments to support customer service
levels given supply chains disruption. Seeing the benefit of these
investments in earnings and customer satisfaction scores.
➔c. 60% of HY22 inventory investment is due to higher sales
volumes combined with higher input prices
➔Inventory at good levels to support service in current environment,
do not expect further build of stock volumes in H2
Page 19| Fletcher Building Limited Half Year Results Presentation| © February 2022

Capex
Investment balanced between key maintenance capex and strong pipeline of organic growth opportunities
Page 20| Fletcher Building Limited Half Year Results Presentation| © February 2022
Capex
NZ$m
Dec 2020
6 months
(1)
Dec 2021
6 months
Base capex4780
WWB new plant3163
Less: Proceeds on disposal of PPE(14)(1)
Net Capex64142
➔Base capex envelope expected to average c. $200m-$250m p.a.
➔Maintenance capex of c. $150m-$200m p.a., including
c. $40m p.a. to create fit-for-purpose systems environment
➔Growth capex of c. $50m-$100m p.a. in digital, sustainability,
product adjacencies, & manufacturing capacity / efficiency
➔Growth capex in base envelope supports the Group’s drive to
improve profitability to c. 10% EBIT margin in FY23
➔Above this base capex, the Group has a strong pipeline of growth
opportunities under review –primarily organic (see divisional
commentary). Potential for above base growth investment of
c. $150m p.a. for FY23 to FY25. Target ROFE of 15%+
➔WWB new plant also above base. Replaces key end-of-life asset,
but also provides capacity to service long-term demand & product
innovation. Project is on time & budget, commissioning 2023.
Remaining capex c. $140m 2H22 and c. $75m FY23
Investment Focus
1. HY21 is restated = HY21 reported adjusted for Cloud Computing Arrangements. HY21 reported capex was $68m

Net debt
Debtlevels remain low; uplifts in HY22 from one-off inventory investments and share buyback
1. Other is comprised of Divestments of $(51m), Investments of $12m and Hedging/Other of $3m
2. Trading cash flow before working capital movements
Net Debt: Jun 21 to Dec 21 (NZ$m)
173
442
35
36
373
122
107
67
142
19
148
83
25
Net Debt
Jun-21
Legacy
projects
InventoryWorking Cap.
Residential
Other
Working Cap.
Net CapexFunding
Costs
DividendShare
buyback
OtherTrading
Cash
Sig. items
trading cash
Net Debt
Dec-21
1
Page 21| Fletcher Building Limited Half Year Results Presentation| © February 2022
2

Leverage
Balance sheet well-positioned to support growth; expect to remain at lower end of 1x-2x leverage range
Leverage (Net Debt / EBITDA)
0.2x
0.4x
0.9x
0.3x
0.2x
c. 0.2-0.5x
Jun-21Dec-21Remaining
WWB Inv't
& FCC Legacy
Share
Buyback
Growth
Investment
Opportunities
Adjusted
leverage
Target range
2.0x
1.0x
Page 22| Fletcher Building Limited Half Year Results Presentation| © February 2022
Leverage and Balance Sheet
➔Uplift in leverage ratio at Dec 21 to 0.4x mainly reflects HY22
investments in working capital and WWB plant
➔Looking ahead, the Group’s balance sheet remains strongly
positioned to support the ongoing share buyback programme and
strategic investments in growth
➔Above base growth investments may lift the Group’s leverage by
c. 0.2x to 0.5x over the period FY23-FY25, due to the lag between
capex and earnings for some organic opportunities
➔In reviewing growth opportunities, the Group will continue to
target ROFE of 15%+ and will maintain a preference for relatively
conservative balance sheet metrics; the Group expects to continue
to operate at just below or at the lower end of its target leverage
range over the medium term

Funding
Drawn debt low, while maturity and liquidity profiles remain strong
➔Undrawn credit lines of $925m and cash on hand of $409m as at
31 Dec 21 –total liquidity of $1.3b
100
57
69
80
55
459
600
325
FY22FY23FY24FY25FY26+
Capital NotesUSPPBank SyndicateOther
Debt maturity profile ($m)
NZ$m
Facilities
31 Dec 21
Drawings
31 Dec 21
Syndicate925-
USPP459459
Capital Notes361361
Other3131
Total1,776851
Debt facilities and drawings ($m)
Page 23| Fletcher Building Limited Half Year Results Presentation| © February 2022
110
71
76
680
839

Dividend and share buyback
Interim dividend of 18.0 cents per share, fully imputed for NZ taxation purposes, to be paid in April
1. Pay-out ratio is expressed as a percentage of Net Earnings excluding Significant Items. policy to pay dividends in the range
of 50% to 75% of net earnings before significant items and having regard to available cash flow. Available cash flow = Free
cash flow less cash interest
Interim Dividend (cps)
➔Interim Dividend of 18.0 cents per share, 68% pay-out ratio, reflecting
strong business performance and outlook
➔Dividends fully imputed for NZ taxation purposes but unfranked for
AU taxation purposes
➔Dividend to be paid on 7 April 2022
➔Dividend Reinvestment Plan will not be operative for this dividend
Buyback
Dividends
➔On-market share buyback of up to $300m through to May-22
➔Commenced on 10 Jun 21, 15.0m shares repurchased as at 31 Dec 21
for $107m ($83m in six months ended 31 Dec 21)
Page 24| Fletcher Building Limited Half Year Results Presentation| © February 2022
12.0
18.0
HY21HY22

Summary
Strong performance momentum, well-positioned to invest for further growth
Page 25| Fletcher Building Limited Half Year Results Presentation| © February 2022
➔2Q EBIT
1
+43% ahead of prior year and 2Q EBIT
1
margin +230bps to 10.2%
➔Performance underpinned by price > cost and operating leverage across more efficient cost base
➔2H22 EBIT margin expected to be c. 9.5%, clear momentum to c.10% EBIT margin target in FY23
➔ROFE 18.7%, ahead of ≥ 15% target
➔Good cash management disciplines, inventory investments support customer service & growth, working capital cycle remains in
line with targets
➔Dividend of 18cps, 50% uplift on HY21, fully imputed, reflective of strong business performance
Performance
Momentum
Well-
positioned to
invest for
further
growth
➔Base capex envelope includes $50m-$100m p.a. of growth investment to support c. 10% EBIT margin from FY23
➔Strong pipeline of additional growth opportunities, primarily organic, potential for additional investment of c. $150m p.a.,
ROFE 15%+
➔Balance sheet remains strongly positioned to support growth investment and shareholder returns –including share buyback
➔Leverage currently 0.4x, expect to continue to operate at the lower end of the Group’s target 1x-2x leverage range over the
medium term
1. Before significant items, excluding Industrial Development

1. HY21 is restated = HY21 reported adjusted for Cloud Computing Arrangements and Forman which was transferred from
Distribution. HY21 reported revenue was $683m, HY21 reported EBIT before significant items was $101m; HY21 reported EBIT
margin was 14.8%, HY21 trading cash was $152m
2. Before significant items
Building Products
HY22 results: strong second quarter from civil sectors and finishing trades
EBIT Margin (%)
1,2
EBIT ($m)
1,2
HY22 trading performance
➔Revenue up 9% for HY, up 25% 2Q21 vs 2Q22: strong civil sectors
driving Steel and Pipes sales; solid finishing trades benefiting from
high product demand and targeted market share gains
➔EBIT 6% lower for HY due to 1Q lockdown: 2Q very strong bounce-
back. Strong HY contribution from Steel; focus on price
governance, operating efficiencies and sales mix to offset higher
raw material and freight costs
➔2Q22 EBIT margin 15.5%: higher volumes driving strong operating
leverage; strong plant utilisation across all businesses with WWB
and TINZ at capacity
➔Trading cash flow used for inventory rebuild following a significant
draw-down of stock in FY21; higher input prices resulting in higher
inventory valuations
Page 27| Fletcher Building Limited Half Year Results Presentation| © February 2022
HY21HY22
1Q2Q
102
96
HY21
14.6%
1Q212Q211Q222Q22
HY22
12.5%
15.5%
HY21HY22
1Q2Q
Gross Revenue ($m)
1
700
765
153
40
HY21HY22
Trading cash flow ($m)
1

Building Products
Pricing & efficiency controls in place; growth initiatives in place to drive material earnings uplift in the medium term
Maintaining strong margin of c. 14% through pricing disciplines, new
products & manufacturing focus
➔Pricing disciplines in place offsetting inflation
➔Product range refresh in Laminex driving higher sales & margins;
continued development of digital capability and offering
➔Manufacturing focus to deliver efficiencies, capacity & capability:
➔Humes-Papakura manufacturing plant automation from Jun-22
➔Significant upgrade to Iplex powder resin unloading & mixing
equipment driving improved safety
➔PCC ovens upgrade commenced, lower carbon emissions
➔Large steel plate processing
Strong pipeline of committed and potential growth initiatives in place to
drive material uplift in earnings over the medium term
➔New WWB plant commissioning planned in FY23, adding 10m sqm to
current 30m sqm in-country production; delivering capacity and
innovation
➔Significant upgrade of Laminex Taupo plant to create wider range of
wood fibre based panel products not currently available in NZ,
working through vendors selection
➔New Glasswoolinsulation plant, adding 200% to our existing
capacity to meet growing market demand post building code
amendments. Av. home will need c. 3x current bales under new code
➔Purpose-built Steel distribution & processing centre to be
constructed by FY26, delivering significant capacity & efficiency gains
➔New purlin mill ordered, triple existing capacity & broader range
Driving operating performance
Delivering growth
Page 28| Fletcher Building Limited Half Year Results Presentation| © February 2022

Building Products
New WWB plant at Tauriko, construction well underway & on budget, planned commissioning by June 2023
Page 29| Fletcher Building Limited Half Year Results Presentation| © February 2022

Distribution
HY22 results: significant second quarter margin of 8.5% achieved from strong operating leverage
HY22 trading performance
➔Revenue up 4% for HY, up 20% 2Q21 vs 2Q22: strong 2Q growth
across all regions most prominently Auckland, lower North and
lower South Islands. Strong sales in core categories, particularly
timber, cladding and frame & truss
➔EBIT 5% lower from 1Q lockdown, but significant 2Q bounce-back,
up 62% 2Q21 vs 2Q22 with very strong 2Q22 EBIT margin of 8.5%
➔Strong margins delivered through operating leverage of higher
sales over a largely fixed cost base; effective pricing disciplines
offsetting cost inflation, customer & efficiency programmes
delivering in disrupted supply chain
➔Trading cash flow: additional working capital driven by higher
activity levels; higher safety stock built to fulfil customer demand
through supply chain inconsistency and supplier allocations
Page 30| Fletcher Building Limited Half Year Results Presentation| © February 2022
1. HY21 is restated = HY21 reported adjusted for Cloud Computing Arrangements and Forman which was transferred to
Building Products. HY21 reported revenue was $852m; HY21 reported EBIT before significant items was $60m; HY21 reported
EBIT margin was 7.0%, HY21 trading cash was $68m
2. Before significant items
EBIT ($m)
1,2
HY21HY22
1Q2Q
57
54
EBIT Margin (%)
1,2
HY21
6.8%
1Q212Q211Q222Q22
HY22
6.2%
8.5%
HY21HY22
1Q2Q
Gross Revenue ($m)
1
835
866
65
35
HY21HY22
Trading cash flow ($m)
1

Distribution
Driving growth; margin expansion through top-line sales growth, pricing disciplines & cost efficiencies
Focused on top-line sales growth, pricing disciplines & cost efficiencies
expected to deliver higher EBIT margin of 8.0-8.5% earlier than flagged
➔Strong market driving operating leverage
➔Continued successful outcomes from digital & e-commerce tools:
➔PlaceMakers digital sales growth through e-commerce tools,
currently 7% of total transactions
➔46% of trade customers registered on e-tools
➔Customer ecosystems integration driving efficiency
➔Mico B2C website refreshed, trade digital programme
underway
➔Digitising end-to-end supply chain; better delivery & capability
➔Disciplined pricing & capability build to offset cost inflation
Continued focus on digital, network expansion & pricing disciplines to
drive market share gain & earnings growth
➔Branch network expansion and growth through new branch openings
and targeted acquisition
➔Data & analytics creating customer insights & increased share of
wallet capture
➔Hub structure maturity with further regional roll-out providing
greater consistency for customers and scale efficiency benefits
Driving operating performance
Delivering growth
Page 31| Fletcher Building Limited Half Year Results Presentation| © February 2022

Mico next generation showrooms; B2C website refreshed
Distribution
Delivering growth through digital and network expansion
Digitisingend-to-end supply chain
Page 32| Fletcher Building Limited Half Year Results Presentation| © February 2022

1. Before significant items
Concrete
HY22 results: top and bottom line initiatives delivering margin expansion and growth
EBIT Margin (%)
1
EBIT ($m)
1
Page 33| Fletcher Building Limited Half Year Results Presentation| © February 2022
HY22 trading performance
➔Revenue solid for HY, up 14% 2Q21 vs 2Q22: volumes growth
(differentiated products and solutions, improved customer service)
& good pricing discipline offsetting inflationary pressures
➔EBIT solid for HY, up 40% 2Q21 vs 2Q22: great progress on shifting
volume to more profitable market segments (higher domestic,
lower export) and sustainable growth from solutions, benefit from
cost initiatives across operations, supply chain and overheads
➔EBIT margin stable for HY, 2Q22 margin 17.2%: increased usage of
alternatives fuels driven by waste tyre facility (commissioned in
Feb-21) enabled reduction of energy costs, with coal substitution
rates lifted from c.35% up to c.50% offsetting the impact of
elevated electricity costs
➔Trading cash flow: servicing strong market demand and working
capital rebuild
HY21HY22
1Q2Q
62
61
1Q212Q211Q222Q22
HY22
14.3%
17.2%
HY21
14.4%
Gross Revenue ($m)
HY21HY22
1Q2Q
430
428
88
72
HY21HY22
Trading cash flow ($m)

Concrete
Strong pipeline of short-and medium-term growth opportunities (sustainability, innovation and digital)
Performance improvement driven by top line & cost initiatives expected
to deliver higher EBIT margin of 14.5-15.5% in FY22, earlier than flagged
➔Investment in renewal and debottlenecking, long term quarry
resources secured to capture market growth
➔Expand solutions offering (egwall systems, flooring, roading) for
industrial and retail customers
➔Supply chain optimisation expected to deliver growth and further
improve margins
➔Strengthen cost leadership through operational excellence and lean
organisation
Driving operating performance
Delivering growth
Page 34| Fletcher Building Limited Half Year Results Presentation| © February 2022
Sustainability, Innovation & Digital initiatives in place to drive earnings
increase & above market growth
➔Low carbon binder and concrete leadership: Forefront of innovative
construction material solutions in NZ -Innovation Lab to fast track
go-to-market of new products and solutions (live mid-2022)
➔Decarbonisation of cement manufacturing through use of alternative
fuels (replacing coal) and raw materials, supplementary cementitious
materials
➔Digital initiatives are focussed on enhancing our customer experience
(scale of Firth’s ready-mix online sales portal), digitalising our
operations & supply chain unlocking operational and supply chain
efficiencies (Firth mobile ticket, GBC ERP upgrade)

Concrete
Sustainability as a major growth opportunity for the NZ concrete division
Page 35| Fletcher Building Limited Half Year Results Presentation| © February 2022

1. Excluding Rocla, all commentary excludes Rocla
2. Before significant items
EBIT Margin (%)
1,2
EBIT ($m)
1,2
Australia
HY22 results: second quarter margin 4.1%, strong improvements in Tradelink, FI & Iplex
HY22 trading performance
Page 36| Fletcher Building Limited Half Year Results Presentation| © February 2022
➔Revenue up 4% for HY with better momentum as the half progressed.
East Coast COVID restrictions slowed A&A work impacting Laminex &
plumbing distribution
➔EBIT up 4% for HY; up 23% 2Q21 vs 2Q22, improved 2Q margin of 4.1%
➔Building Products up 14%: pricing strategies & product mix
lifting margins. New products egFirmasoftin FI & Surround in
Laminex exceeding expectations
➔Significant improvement of 13% in Distribution: gross profit
uplift driven by continued momentum in SME plumber
segment, own brand strategy & digital penetration
➔Steel revenue growth, rapid input cost increases expected to be
offset into 2H22. Margin accretive shed segment strong
➔Trading cash outflows reflected targeted inventory investments for 2H
customer demand with continued tight debtor controls
HY21HY22
1Q2Q
46
48
1Q212Q211Q222Q22
HY22
3.5%
4.1%
HY21
3.5%
Gross Revenue ($m)
1
1,314
1,365
HY21HY22
1Q2Q
Trading cash flow ($m)
1
51
(28)
HY21HY22

Australia
Driving growth across a more efficient operational platform setting up 5-7% EBIT margin in FY23
Page 37| Fletcher Building Limited Half Year Results Presentation| © February 2022
Driving operating performance
Delivering growth
Top line and bottom line focus expected to deliver profitable growth with
further uplift in margin, 2H22 margin >4%
➔Pricing disciplines
➔Online sales >$250m p.a. and growing, Tradelink B2B launch in Q3
➔Winning in key categories:
➔Laminex decorative products -Surround
➔Insulation –core Pink Batts, supply & install
➔Material improvement in Iplex civil infrastructure
➔Own brand & private label (plumbing, sheds & doors)
➔Delivering operational leverage with improved efficiency metrics
➔Steel supply chain disruption & raw material shortages recovery
Positioned for further EBIT growth through adjacencies, digital maturity,
margin accretive products & innovation
➔Adjacencies: Haven Kitchens pilot stores in place, Laminex Surround
targeted sales $50m in the medium-term -with strong start to date
➔Digital strategies already ahead of business case, creating new
revenue streams, driving incremental online sales & lifting margins
➔Pipeline of new product development delivering growth, attracting
new customers & driving specification
➔Continued manufacturing automation programme for efficiencies
➔Exploring innovative new materials such as bamboo as an alternative
fibre in Laminex: potential to improve both product margins &
sustainability

Surround by Laminex: plasterboard/paint alternatives
Australia
Delivering growth through disruption via adjacencies and margin accretive products
Haven Kitchens: full kitchens available same day no waiting
Page 38| Fletcher Building Limited Half Year Results Presentation| © February 2022

1. Before significant items
2. HY22 $649m funds balance: $444m housing land, $166m housing WIP, $23m industrial development land, $16m other
Residential and Development
HY22 results: considerable housing demand realised in earnings lift; completions delayed by lockdowns
16.9%
27.2%
HY21HY22
ResiTotal EBIT Margin
60
65
47
HY21HY22
ResiInd. Dev't
EBIT Margin (%)
1
EBIT ($m)
1
HY22 trading performance
Page 39| Fletcher Building Limited Half Year Results Presentation| © February 2022
17.4%
35.2%
62
112
Funds employed ($m)
2
534
649
115
FY21Land &
Housing WIP
HY22
356
318
HY21HY22
Gross Revenue ($m)
➔Revenue 11% lower for HY: 278 unit sales in HY22 (vs. 515 in HY21)
sales strong but delivery impacted by COVID shutdown and
construction delays in 1Q; continued strong housing market with
significant price growth; average unit price 33% higher
➔EBIT up 81%:
➔Residential $65m, includes land transfer to Vivid Living $9m
revaluation gain recognised
➔Industrial Development $47m: Rocla Emu Plains (cash to be
received in FY23) & Fletcher Insulation Rooty Hill sites sold
➔c. 4,500 residential lots (2,503 residential lots & two rural
properties on balance sheet, 2,037 units of both zoned and future
urban zoned land under unconditional contracts)

Residential and Development
Continue to deliver performance and growth from very strong base
Page 40| Fletcher Building Limited Half Year Results Presentation| © February 2022
Delivering growthDriving operating performance
Delivering performance through reputable product & driving innovation;
targeting continued strong top-line growth at >15% margin
➔2H22 unit sales higher than 2H21, 239 homes already conditional or
unconditional in 2H22
➔Customer focus including introduction of new typologies to meet
customer price points & preferences, Net Promoter Score sits at 81.4
➔Scaling & further densifying existing and new housing developments
as a response to changing regulatory settings whilst continuing to
deliver great communities
➔Relentless focus on innovation and efficiency to address recent
increases in costs
➔Clever Core off-site manufacturing continues to scale up, with speed
of construction benefits delivering improved working capital
recycling. After delivering over 150 homes for Fletcher Living, first
completions for external customers in 2H22
Plan well underway for delivering c.1,400-1,500 units p.a. by FY25
➔Land already secured to deliver growth volumes for the next 3 years,
with additional large sites bought for new masterplanned
communities past FY25
➔Wary of acquiring at top of the market –focus is on strategic sites
which make sense through cycle
➔Vivid Living retirement sites under construction at Red Beach &
WaiataShores, with next tranche identified and secured at
Stonefields, Karaka and Three Kings to support the forecast growth
through FY25
➔Apartment sites now under construction at Panmure, Hobsonville&
Three Kings; good levels of presales secured, and additional land now
secured to enable delivery of over 1,700 apartments in the next 5
years

Continued solid progress in One Central (Christchurch)
Residential and Development
Multi-year masterplan developments continuing to deliver strong pipeline of earnings
Clever Core homes in Whenuapai (Auckland)
Page 41| Fletcher Building Limited Half Year Results Presentation| © February 2022

1. Excludes the impact of the intra-group construction of WWB plant at Tauriko$5m
2. Before significant items
Construction
HY22 results: robust cost controls & operating efficiencies; COVID restrictions tough on productivity
EBIT Margin (%)
1
EBIT ($m)
1,2
HY22 trading performance
Page 42| Fletcher Building Limited Half Year Results Presentation| © February 2022
➔Revenue up 11% for HY: increased building works at NZICC (nil
margin) & WWB factory; $0.43b Infrastructure services & minor
capital works (BPC, Higgins, South Pacific), $0.29b major projects
(roads, buildings)
➔EBIT loss of $5m: 1Q lockdown & ongoing restrictions resulted in
lower productivity and unrecovered plant and labour costs; major
project programmes also impacted with supply chain & skilled
workforce constraints. Commercial and contractual protections in
place to ensure recovery. Tight controls on operating costs resulted
in lower selling, general & admin expenses
➔Trading cash flow of $2msupported by resolution of historical
claims across infrastructure services & major project portfolios
➔Continued good progress in rebalancing future orderbook to
deliver an improved risk profile & margins
1
12
(11)
6
1Q212Q211Q222Q22
1.5%
1Q212Q211Q222Q22
HY22
(0.7)%
HY21
2.0%
Gross Revenue ($m)
HY21HY22
1Q2Q
651
720
(80)
2
HY21HY22
Trading cash flow ($m)
HY22
(5)
HY21
13

Construction
Strong forward quality revenue secured, new work expected to deliver 3-5% EBIT margin
Page 43| Fletcher Building Limited Half Year Results Presentation| © February 2022
Driving operating performanceDelivering growth
Improve productivity and remain focused on driving in-year operating
performance to lift overall margin for FY22
➔Committed orderbook underpins 90% of forecast revenue for 2H22
➔Delivering forecast productivity following COVID slippage (SthPac,
BPC, Infra and Buildings)
➔Retention plans in place to manage labour shortage from closed
borders
➔Tight cost controls, managing input cost inflation
➔Completion of remaining legacy projects; $0.3b work to complete
1. Orderbook excludes intra-group revenue from WWB plant
$2.8b current order book (+$0.6b preferred), driving to 3-5% EBIT margin
as COVID issues subside & order book replaces nil margin legacy work
➔Secured forward order book of new work & work won in year
delivering average gross margins >10%
➔Includes low-to-medium risk style contracts, egsmaller renewal &
upgrade contracts, national & local maintenance contracts, multi-
year key public sector client framework agreements
➔$1.3b 9 yrWatercare enterprise model for BPC/Infrastructure
businesses
➔$0.3b AMETI busway alliance project (preferred)
➔Preferred on $300m of new work post December 2021 including
Auckland International Airport 3 year framework agreement
➔Underpins 52% revenue for FY23

Construction
Waikato 50: Water Treatment Plant completed on time, in budget
Page 44| Fletcher Building Limited Half Year Results Presentation| © February 2022

Outlook
Strongly positioned to deliver growth in FY22 and beyond
➔Customers & forward indicators point to ongoing strong volumes
➔Strong pricing disciplines to cover inflation increases
➔EBIT
1
margin c. 9.5% in 2H22 (7.2%
2
in 2H21)
➔FY22 Full Year EBIT
1
expected to be c. $750m (excl. risk of Omicron wave in New Zealand of c.$25m-$50m)
Page 46| Fletcher Building Limited Half Year Results Presentation| © February 2022
FY22
Medium
term outlook
➔Markets across both NZ and Australia look robust well into the future
➔COVID impacts start to ease; no full scale lockdowns, borders open, skills shortage eases, and no repeat of the
significant profit headwinds seen in FY22
➔Performance improvements embedded, on track to deliver group EBIT margins of c. 10% in FY23
➔Maturing investment pipeline to drive growth beyond FY23
1. Before significant items
2. Excluding Industrial Development to show on a like-for-like basis

Fletcher Building Limited
Appendix

Divisional revenue exposure and FB revenue by market
Resi, 44%Com, 28%Infra, 28%
Resi, 78%Com, 21%
Resi, 46%Com, 26%Infra, 28%
Resi, 62%Com, 27%
Infra,
11%
33%
19%
18%
19%
8%
3%
NZ
Residential
NZ
Commercial
NZ
Infrastructure
AU
Infrastructure
AU
Commercial
AU
Residential
Total FB Revenue by Market (%)
Divisional Revenue Exposure by Sector
Distribution
Building
Products
Concrete
Australia
Page 48| Fletcher Building Limited Half Year Results Presentation| © February 2022

---

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

Fletcher Building announces FY22 half year results and
18cps interim dividend
Auckland, 16 February 2022: Fletcher Building today announced its results for the first half of
FY22.
➢ Revenue of $4,064 million, up 2% from $3,987 million in HY21
➢ EBIT before significant items of $332 million, up 3% from $323 million in HY21
➢ EBIT margin of 8.2%, up from 8.1% in HY21
➢ Net Profit After Tax of $171 million, up 41% from $121 million in HY21
➢ Solid cash flows partly offset by inventory rebuild and housing investment as flagged
➢ Fully imputed interim dividend of 18 cents per share declared, to be paid on 7 April 2022
➢ Strong 2Q EBIT of $264 million (up 73% on 2Q FY21) and EBIT margin of 11.8%, offsetting
COVID-19 lockdown impact of c. $105 million on 1Q EBIT
➢ FY22 EBIT before significant items expected to be approximately $750 million

Fletcher Building Chief Executive Ross Taylor said: “With improved operational performance and
cost disciplines now embedded across the business, we were able to deliver a strong HY22
performance. This was despite the first quarter being heavily impacted by the up to five week-
long COVID-19 stringent lockdown in New Zealand and local lockdowns in Australia which
impacted EBIT by approximately $105 million.

“Revenue was robust overall at $4,064 million, up 2% on the first half of FY21. Group EBIT before
significant items was $332 million, up 3% from $323 million in the prior period. Group EBIT margin
excluding significant items improved to 8.2% from 8.1%, and Net Earnings of $171 million were
up 41% from $121 million in the prior period.

“Our strong second quarter performance was a particular highlight in this result where the Group
generated EBIT of $264 million, up 73% on the comparative quarter, delivering a strong Group
EBIT margin of 11.8%, indicating strong momentum into the second half.

“Cash flows from operating activities for the half year were $157 million, compared to $424 million
reported in HY21 and reflects flagged investments to rebuild stock in key areas and housing
investment following a busy FY21.

“The Board is pleased to approve a fully imputed FY22 Interim Dividend of 18.0 cents per share
for the six months ended 31 December 2021, to be paid on 7 April 2022.

“Looking ahead, the second half of FY22 is expected to be very solid with our customers and
forward indicators pointing to continuing volumes. With confidence in our operational disciplines
and in covering inflationary costs, we expect our second half EBIT margin to be approximately
9.5% and to deliver FY22 full year EBIT before significant items of approximately $750 million.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
Based on our experience in Australia with the COVID-19 Omicron variant, we foresee a potential
risk impact on our EBIT in the $25 million to $50 million range.

“As we look beyond this financial year, the Group is very well positioned to drive growth. In our
New Zealand materials and distribution divisions we are investing in increased manufacturing
capacity and driving product and market growth. Our Residential and Development businesses
are well advanced in growing annual sales volumes by circa 500 houses a year which includes
our new Vivid Living retirement offer. In Australia, we continue to drive an innovative suite of
disruptive product offers.

“In our markets, in New Zealand, residential consents have been running ahead of industry
capacity for some time. This has created a backlog of work on top of future consents in the
coming years. This is anecdotally supported by our home builder customers generally now
placing orders for their customers 12 to 18 months in advance. In addition, the infrastructure
sector continues to have a strong growth outlook on the back of committed and planned
government projects. Similarly, in Australia, forecasters are all pointing to ongoing strong growth
across residential, commercial and infrastructure through FY23 and beyond.

“Fletcher Building is in a very strong position; our markets look robust, we expect to not see the
significant impacts of lockdowns to reoccur, we remain on track to further improve EBIT margins
across the Group to 10% in FY23 and importantly, we have a maturing pipeline of investments
that will keep driving growth beyond FY23.

“Finally, I’d like to thank our people for their commitment and resilience during demanding times
that has allowed us to deliver this performance. I would also like to acknowledge all our
customers for their continued support.”
#Ends
Authorised by:
Chris Reid
Company Secretary

For further information please contact:

MEDIA
Christian May
General Manager – Corporate Affairs
+64 21 305 398
Christian.May@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com

---

Fletcher Building Limited
2022 Interim Financial Results

When used in these Interim Financial Results, references to the ‘Company’ are references
to Fletcher Building Limited. References to ‘Fletcher Building’ or the ‘Group’ are to Fletcher
Building Limited, together with its subsidiaries and its interests in associates and joint
ventures. References to $ and NZ$ are to New Zealand dollars unless otherwise stated.
Contents
03 Chair and CEO's Review
05 Group Performance
07 Group Overview
10 Building Products
11 Distribution
12 Concrete
13 Australia
15 Residential and Development
16 Construction
17 Consolidated Financial Statements
22 Notes to the Consolidated
Financial Statements
32 Independent Auditor's
Review Report
Front cover image: Lindsey Heileson from the Kitchen Centre measures up an installation
at the Fletcher Living Waiata Shores development.
Fletcher Building Limited 2022 Interim Financial Results
2

We are pleased to report Fletcher Building’s
financial results for the six months ended
31 December 2021 (HY22).
HY22 RESULTS
With improved operational performance and cost disciplines now
embedded across the business we were able to deliver a strong
HY22 performance. This was despite the first quarter impacts
from the COVID-19 lockdowns and ongoing supply chain and
inflationary challenges.
Revenue was solid overall at $4,064 million, up 2% on the first half
of FY21. Group EBIT before significant items was $332 million,
up 3% from $323 million in the prior period. Group EBIT margin
excluding significant items improved to 8.2% from 8.1%, and Net
Earnings of $171 million were up 41% from $121 million in the prior
period. The Board is pleased to approve an interim dividend of 18.0
cents per share, a 50% increase on the 12.0 cents per share interim
dividend last year.
Cash flows from operating activities for the Group were $157
million, compared to $424 million in the prior period. The cash
flow performance reflects the previously flagged working capital
investments by the Group in HY22. These investments were to
rebuild stock in key areas following a busy prior year, and to mitigate
some of the issues arising for our customers from the elongated and
more difficult international supply chains.
The Group’s on-market share buyback programme remains active.
This programme was announced on 26 May 2021 and comprises a
buyback of up to $300 million over the 12 months to May 2022. To
date, we have repurchased $107 million of shares.
IMPACT OF COVID-19 IN THE FIRST QUARTER
In the first quarter we saw New Zealand experience full lockdowns
and intra-country border restrictions, and in Australia, a complex and
differing set of state-based border restrictions and local lockdowns.
The net result of this was an impact to EBIT in New Zealand of circa
$100 million and in Australia of around $5 million to our performance
during the half year.
STRONG SECOND QUARTER MOMENTUM
In the second quarter, our markets returned to more stable trading
conditions as these restrictions broadly finished.
In this environment, and excluding the Industrial Development
business, the Group reported revenue 10% higher in the second
quarter than the prior period; EBIT before significant items 43%
ahead of the prior period; and EBIT margins of 10.2%, an uplift of
230 basis points compared to the prior period.
Looking forward, a return to full lockdowns because of COVID-19
seems unlikely, and as such the second quarter performance is a
good indication of the level of operating performance we can now
expect from the Group.
A MATURING GROWTH PIPELINE
The Group’s investment pipeline is well positioned to drive growth
beyond FY23. For the New Zealand materials and distribution
divisions, these investments include significantly increasing our
manufacturing capacity across; plasterboard, insulation, and wood
fibre-based products, expanding our PlaceMakers brand in regionally
important areas, and driving product and market growth with
our low carbon cement and concrete offers. For our Residential
and Development businesses, we are well advanced in growing
our annual sales volumes by circa 500 houses a year through a
combination of a larger core housing offer, scaling our apartment
business, and the introduction of our retirement offering, Vivid
Living. In Australia, we continue to drive an innovative suite of new
and disruptive product offers that include Haven Kitchens and the
Laminex Surround wall panel range. And finally in our New Zealand
Construction business, we have materially improved the size and
quality of our forward order book.
HEALTH AND SAFETY
Protect, our multi-year safety programme, continues to drive safety
improvements across all measures. 93% of our sites remained
injury-free during the period and our Total Recordable Injury
Frequency Rate (TRIFR) ended the half-year at 4.2, a clear sign
of the good progress we are making in achieving ‘zero injuries
every day’.
We continue our determined safety resolve, with improvement
efforts over the half-year focusing on ongoing leadership training and
coaching. As we move into the second half, the Protect programme
focus widens to further improve our approach to managing critical
controls, and a refreshed frontline safety engagement programme to
be delivered from 2022.
SUSTAINBILITY
Sustainability is central to our strategy as it is clear to us that the
building and materials sector needs to shift the way it designs, builds
and sources the materials used in the construction process. In this,
we believe innovation plays an important role.
We ended the half year with a 13% reduction in carbon emissions
across all our operations compared with our baseline FY18 year,
with some of this reduction occurring as a result of downtime to
make environmental improvements. We estimate our sustainable
reduction to be at least 10% below our baseline. This represents
good progress toward our Science-based Target to reduce overall
emissions by 30% by 2030.
We continue to focus on making sustainable products. In HY22 more
of our products gained sustainability certifications based on a full
life-cycle impact analysis. Currently 45% of our revenue from our
manufacturing businesses is from products that hold a sustainability
certification.
Chair and CEO's Review
Fletcher Building Limited 2022 Interim Financial Results
3

Chair and CEO's Review (Continued)
We are proud that our efforts in carbon reduction have been
recognised by industry with Fletcher Building being named as a
finalist in the Sustainable Business Network Awards and the Toitu
-

Brighter Future Awards. Additionally, we maintained a B rating from
the Carbon Disclosure Project (CDP) for managing carbon emissions
and climate change. We also retained our membership of the Dow
Jones Sustainability Asia Pacific Index, one of only 17 companies
from our sector and one of only five companies from any industry in
New Zealand.
MARKETS SET TO REMAIN STRONG
Present indicators point to core volumes in New Zealand and
Australia remaining at strong levels in the second half of FY22,
through FY23 and beyond.
This view is supported by both market forecasters, but equally,
strong evidence we are seeing from our own on the ground activities
and customer base.
In New Zealand, residential consents have exceeded industry
capacity to deliver for the last two years by around 5,000 to 15,000
per annum. This has created a backlog of work on top of future
consents in the coming years. This is anecdotally supported by our
home builder customers generally now taking house building orders
for their customers 12 to 18 months in advance. In addition, the
infrastructure sector continues to have a strong growth outlook on
the back of committed and planned government projects.
Similarly in Australia forecasters are all pointing to ongoing strong
growth across the residential and infrastructure through FY23
and beyond.
DIVIDEND
The Board is pleased to approve a FY22 interim dividend of 18.0
cents per share for the six months ended 31 December 2021 to be
paid on 7 April 2022. This compares to 12.0 cents per share for the
FY21 interim dividend, with the uplift in the current period reflective
of the business’s strong operating performance and positive outlook.
The FY22 interim dividend will be fully imputed for New Zealand
taxation purposes, though will be unfranked for Australia taxation
purposes. The Board also expects to be in a position to approve a
final FY22 dividend.
We remain confident that our strategy positions us well to drive
growth in shareholder value, across both the short and longer term.
GROUP OUTLOOK
We expect our established momentum in operational performance
to continue. In the second half of FY22, Group EBIT margins are
expected to be in the order of 9.5%, an uplift of 230 basis points
compared to the same period last year.
This means we expect to deliver FY22 full year EBIT (before
significant items) of circa $750 million. However, the COVID-19
Omicron variant is yet to peak across New Zealand, and based on
our experience in Australia, we foresee a potential productivity
impact due to people and supply absences on our EBIT in the $25
million to $50 million range.
We remain confident in our outlook for the FY23 year as; it is unlikely
we will suffer from any further full lock downs from COVID-19, our
markets are likely to remain at or above present levels, and we
expect the Group to deliver a further improvement to profitability
averaging 10% EBIT margins for FY23. Beyond this we will also
start to see the benefit from the material number of scale growth
initiatives we presently have underway.
We sincerely thank the efforts of all our people, through what was
again a demanding and challenging period. We look forward to the
second half of the year and to sharing the full year results in August.
Bruce Hassall Ross Taylor
Chair CEO
Fletcher Building Limited 2022 Interim Financial Results
4

Group Performance
NZ$m (except where noted)
Six months ended
31 December 2021
Six months ended
31 December 2020
Restated
(1)
Revenue4,064 3,987
EBIT before significant items
(2)
332 323
Significant items
(3)
(43)(86)
EBIT289 237
Lease interest expense(30)(33)
Funding costs(22)(23)
Earnings before tax 237 181
Tax expense(63)(57)
Earnings after tax 174 124
Non-controlling interests(3)(3)
Net earnings171 121
Net earnings before significant items214 195
Basic earnings per share (cents) 21.0 14.7
Basic earnings per share before significant items (cents) 26.3 23.7
Dividends declared per share (cents)18.012.0
Cash flows from operating activities157424
Capital expenditure15678
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9 of the financial statements.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess the performance of the business and has been derived from Fletcher Building Limited’s interim
financial statements for the period ended 31 December 2021.
(3)
Further details of significant items can be found in note 2.1 of the financial statements.
Fletcher Building Limited 2022 Interim Financial Results
5

Group Performance (Continued)
Revenue
NZ$m
Six months ended
31 December 2021
Six months ended
31 December 2020
Restated
(1)
Building Products765700
Distribution866835
Concrete428430
Residential and Development318356
Construction720651
Australia1,3881,390
Other55
Group4,4904,367
Less: intercompany sales (426) (380)
External revenue4,0643,987
EBITEBIT before significant items
(2)
NZ$m
Six months ended
31 December 2021
Six months ended
31 December 2020
Restated
(1)
Six months ended
31 December 2021
Six months ended
31 December 2020
Restated
(1)
Building Products 96 102 96 102
Distribution 54 57 54 57
Concrete 61 67 61 62
Residential and Development 112 62 112 62
Construction (10) 12 (10) 13
Australia (2) (36) 45 51
Corporate (22) (27) (26) (24)
Total 289 237 332 323
Lease interest expense (30) (33) (30) (33)
Funding costs (22) (23) (22) (23)
Earnings before tax 237 181 280 267
Tax expense (63) (57) (63) (69)
Earnings after tax 174 124 217 198
Non-controlling interests (3) (3) (3) (3)
Net earnings 171 121 214 195
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9 of the financial statements.
(2)
Measures before significant items are a non-GAAP measure used by management to assess the performance of the business and has been derived from Fletcher Building Limited’s interim
financial statements for the period ended 31 December 2021. Further details of significant items can be found in note 2.1 of the financial statements.
Fletcher Building Limited 2022 Interim Financial Results
6

Group Overview
A significant feature of the Group’s HY22 performance was the
impact of COVID-19 restrictions on the first quarter, especially in the
New Zealand businesses, followed by a strong rebound in activity
and earnings in the second quarter as restrictions eased. In August
and September, the Group was required to shut down almost all
New Zealand operations for up to five weeks. This resulted in lost
revenue of approximately $300 million and an earnings impact of
approximately $100 million. In Australia, COVID-19 restrictions in
the first quarter resulted in revenues below expectations, with the
impact most noticeable in the Additions & Alterations sector. This
impacted Australia earnings in the first quarter by approximately $5
million. As restrictions eased in both countries the Group rebounded
strongly, with the second quarter results reflecting the continued
improvement in the Group’s operational performance and growth.
In the second quarter, and excluding the Industrial Development
business, the Group reported revenue 10% higher than the prior
period and EBIT before significant items 43% ahead of the prior
period. Group EBIT margin in the second quarter (again excluding
Industrial Development) was 10.2%, an uplift of 230 basis points
(bps) compared to the prior period.
The New Zealand materials and distribution divisions (Building
Products, Concrete, Distribution) performed strongly outside of
the lockdown period. The New Zealand market continues to see
sustained, high levels of residential sector demand, along with
robust commercial and public-sector infrastructure activity. At the
same time, global and local supply chains have remained stretched,
resulting in logistics challenges and material increases in freight and
other input costs. In this environment, the New Zealand materials
and distribution divisions have been particularly focused on delivering
effective customer service and solutions, operational efficiency,
pricing to offset input cost inflation, and pushing into new areas of
innovation and growth. Overall, HY22 earnings for these divisions
were down slightly from HY21, reflecting the impact of lockdowns in
the first quarter. In the second quarter, however, revenue was 21%
higher and EBIT before significant items of $151 million was 45%
higher than the prior period. EBIT margin in the second quarter was
12.9%, 230bps ahead of the prior period.
In Australia, market activity levels were generally robust, though
were subdued somewhat by COVID-19 restrictions through the half.
The division continues to make good progress against its strategy,
benefiting from the significant cost reductions and operational
investments undertaken over the past three years. EBIT before
significant items of $45 million was slightly behind the prior period.
However, excluding the divested Rocla business and in local currency
terms, gross revenue increased 6% and underlying HY22 EBIT
increased 5% compared to the prior period. Performance in the
second quarter showed good momentum, with underlying EBIT 23%
ahead of the prior period and underlying EBIT margins lifting to 4.1%,
60bps ahead of the prior period.
In Residential, EBIT of $68 million was ahead of the prior period’s
$62 million. Strong house prices combined with the efficiencies of
building at scale resulted in significant margin expansion, offsetting a
reduction in house sales volumes due to the first quarter lockdowns
and industry capacity constraints. Work commenced on the first
two of the Vivid Living retirement villages, with a revaluation gain
of $9 million recognised on the transfer of land into that business.
Clever Core, the offsite panelisation business, continued to scale its
volumes, and Apartments continued to build out its offering as a key
area of future growth for the division. In Industrial Development, the
two transactions planned for FY22 were both completed in the first
half, delivering EBIT of $47 million compared to $2 million in the prior
period.
The Construction division experienced the most material impact from
the COVID-19 restrictions. The August to September lockdown, as
well as ongoing restrictions through the balance of HY22, resulted
in lower on-site productivities and unrecovered plant and labour
costs. A portion of these costs are expected to be recovered through
contractual entitlements, with some of these claims remaining to
be settled in the second half of FY22. The COVID-19 restrictions also
impacted new work commencement in the period, as some higher-
margin project work in Brian Perry Civil and Higgins was deferred
into the second half of FY22 and into FY23. The Construction division
reported an HY22 EBIT loss before significant items of $10 million;
prior to elimination of intra-Group margin on the Winstone Wallboards
plant, the division's underlying HY22 EBIT loss was $5 million.
Positively, the division's underlying result in the second quarter (i.e.
prior to elimination of intra-Group margin) was a profit of $6 million.
The division continues to make good progress in rebalancing its future
orderbook to deliver an improved risk profile and margins, with work in
hand of $2.8 billion at December 2021. Work remaining on the legacy
projects reduced further in HY22 and now sits at $0.3 billion.
Significant items charges for the Group in HY22 were $43 million.
These related almost fully to the reclassification of the currency
translation reserve through the income statement following the sale of
the Rocla business, which was completed in August.
Net interest expense for the Group was $52 million in the period, of
which $30 million was related to lease expenses. A tax expense of
$63 million in the period compares to $57 million in the prior period.
Basic earnings per share were 21.0 cents for the period, compared
to 14.7 cents in the prior period. Excluding the impact of significant
items, earnings per share were 26.3 cents, compared with 23.7 cents
in the prior period.
External revenue of $4,064 million was $77 million or 2% higher than the prior period’s $3,987
million. EBIT before significant items was $332 million, compared to $323 million in the prior period.
Group net earnings were $171 million, compared to $121 million reported in the prior period. Cash
flows from operating activities were $157 million, compared to $424 million in the prior period.
Fletcher Building Limited 2022 Interim Financial Results
7

Group Overview (Continued)
GROUP CASH FLOWS
Cash flows from operating activities for the Group were $157
million, compared to $424 million in the prior period. The cash flow
performance reflects working capital investments by the Group in
HY22, consistent with previously signalled commitments.
In Residential and Development, investment in land and housing
inventories resulted in a working capital outflow of $107 million. This
is consistent with the commitment to invest a total of approximately
$200 million in FY22 to support the division’s growth, and to rebuild
land and housing inventories following a significant draw-down of
these stocks in FY21. The HY22 investment was inclusive of $69
million of land purchases, with the remainder reflecting higher
housing work-in-progress as the division scales its volumes, as well
as a delayed settlement on the Emu Plains land sale.
In the materials and distribution divisions, investment in inventories
resulted in a $122 million working capital outflow in HY22. This was
driven by two factors. Firstly, targeted investment in resilience stocks
to ensure the Group can effectively meet high levels of customer
demand in an environment of significant supply chain disruption. And
secondly, the effect of higher input prices on the value of inventories
in these divisions, notably in the Steel businesses.
Net capital expenditure for the Group in the period was $142 million.
This included $63 million for the new Winstone Wallboards plant, for
which delivery timeline and cost remain in line with plan, and $18
million for quarry land as Winstone Aggregates invested in aggregate
reserves in key regions. Additional capital investments in the period
were focused on strategic priorities in manufacturing efficiency and
digitisation, including $15 million on the Group’s project to create a
fit-for-purpose backbone system environment.
Group cash flows in HY22 are also inclusive of: a $51 million inflow
from the divestment of the Rocla business in Australia; a $148
million outflow for the FY21 final dividend payment; and an $83
million outflow as part of the Group’s on-market share buyback
programme. This buyback programme was announced on 26 May
2021 and comprises a share buyback of up to $300 million over the
12 months to May 2022.
Cash flow (NZ$m)
Six months ended
31 December 2021
Six months ended
31 December 2020
Restated
(1)
EBIT before significant items
(2)
332323
Depreciation and amortisation172176
Lease principal payments and lease interest paid(119)(124)
Provisions and other(12)19
Trading cash flow before working capital movements373394
Working capital movements(296)118
Trading cash flow excluding legacy projects and significant items77512
Legacy projects cash flow35(109)
Significant items cash flow(25)(34)
Trading cash flow87369
Add: lease principal repayments 8991
Less: cash tax paid-(3)
Less: funding costs paid(19)(33)
Cash flows from operating activities157424
Free cash flow
(3)
excluding legacy projects(51)416
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9 of the financial statements.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess the performance of the business and has been derived from Fletcher Building Limited’s interim financial
statements for the period ended 31 December 2021. Further details of significant items can be found in note 2.1 of the financial statements.
(3)
Free cash flow is defined as trading cash flow less capital expenditure and cash tax but excluding any merger and acquisition activities.
Fletcher Building Limited 2022 Interim Financial Results
8

FUNDING AND BALANCE SHEET
The Group’s balance sheet and funding profile remains strong.
Total funding available to the Group as at 31 December 2021 was
$1,791 million of which $925 million was undrawn and there was
an additional $409 million of cash on hand. The Group’s liquidity was
therefore strong at $1.3 billion.
The Group’s gearing at 31 December 2021 was 10.6% compared
with 4.4% at 30 June 2021.
The Group’s leverage ratio (net debt / EBITDA) at 31 December
2021 was 0.4 times, compared with 0.2 times at 30 June 2021.
The Group expects to exit FY22 with a slightly higher leverage ratio,
though still below the lower end of the target range of 1.0 - 2.0
times. Key drivers of this slightly higher leverage ratio at June 2022
are the investments in the Winstone Wallboards plant (circa $140
million investment), land and housing inventories in the Residential
and Development division (circa $100 million investment), and the
ongoing share buyback programme.
The average maturity of the Group’s debt at 31 December 2021
is 3.6 years and the hedged currency split is 38% Australian
dollar; 60% New Zealand dollar; and 2% spread over various other
currencies.
The Group currently has 69% of all borrowings with fixed interest
rates with an average duration of 1.7 years. Inclusive of floating rate
borrowings, the average interest rate on the debt (based on period-
end borrowings) is 4.1%.
DIVIDEND
The FY22 interim dividend is 18.0 cents per share, compared to 12.0
cents per share for the FY21 interim dividend. The uplift in dividend
reflects the business’s strong operating performance and positive
outlook. Further, the dividend will be fully imputed for New Zealand
taxation purposes, though will be unfranked for Australian taxation
purposes.
The interim dividend will be paid on 7 April 2022 to holders
registered as at 5:00 pm (NZ time) on 18 March 2022. The shares will
be quoted on an ex-dividend basis from 17 March 2022 on the NZX
and ASX. The Dividend Reinvestment Plan will not be operative for
this dividend payment.
CLOUD COMPUTING ARRANGEMENTS
In April 2021, the International Financial Reporting Standards
Interpretations Committee (IFRIC) issued a final agenda decision
which concluded that costs incurred in configuring or customising
software in a cloud computing arrangement can only be capitalised
if the activities create an intangible asset that the entity controls,
and that meets certain other criteria. The Group has historically
capitalised such costs. The adoption of the above agenda decision
by the Group has two impacts: it creates an expense in the FY22
income statement of the relevant cloud computing costs; and it
leads to the derecognition of previously capitalised costs as an
opening balance adjustment to the prior year, thereby reducing
amortisation of historically capitalised costs in FY22. The net of
these two impacts in the Group’s income statement in the current
half-year period is an increased expense of approximately $2 million.
For the FY22 full year, the net impact is expected to be an increased
expense for the Group of approximately $10 million due to the
phasing of relevant spend in FY22. This impact is principally in the
Australia, Distribution and Construction divisions.
Group Overview (Continued)
Fletcher Building Limited 2022 Interim Financial Results
9

Building Products
The Building Products division reported gross
revenue of $765 million, which was 9% higher than
the prior period. EBIT was $96 million, compared to
$102 million in the prior period.
Following the COVID-19 lockdowns in the first quarter, the division
delivered strong year-on-year growth. Second quarter revenues were
25% higher and EBIT was 40% higher than the prior year. Second
quarter EBIT margin of 15.5% was 160bps ahead of the prior year.
Outside of the lockdown period, the Steel and Pipes (Iplex,
Humes) businesses benefited from strong civil sector activity
across the country, particularly in the Northern and Southern
regions. The finishing trade businesses (Winstone Wallboards,
Tasman Insulation, Laminex) benefited from continuing levels of
high product demand from residential new builds, combined with
targeted market share gains.
A tight labour market and higher raw material and freight costs were
key features of the HY22 operating environment. A strong focus
on price governance, operating efficiencies, and a shift to more
profitable sales mix in certain categories enabled the division to hold
gross margins outside of the lockdown period. Higher volumes drove
strong operating leverage and resulted in the strong second quarter
EBIT margins.
Trading cash flow for the division in HY22 was $40 million, compared
to $153 million in the prior year. This reflected two factors: the
previously signalled rebuild of inventory to more normal levels
following a material draw-down of stock in FY21; and higher
input prices leading to higher stock valuations, particularly in the
Steel business.
Capital expenditure in the period was $79 million, including $63
million for the ongoing build of the new Winstone Wallboards plant in
Tauriko, for which delivery timeline and cost remain in line with plan.
The division continues to focus on four key areas, namely: growth
into logical adjacencies; leading customer service; pricing excellence;
and a lean operational model and operational excellence. In the
period, the Steel business has started to realise gains from its
business improvement initiatives with a high focus on pricing agility,
product category management and strategic project tendering. The
division continues to invest in improving manufacturing capabilities,
with on-going investments in the new wallboards and pipes facilities,
and process automation and new technologies in our Insulation and
Steel businesses. Adapting to current market trends and customer
needs is also a priority across the division, with product range
refreshes a particular focus for the Laminex business in the period.
Winstone Wallboards
Laminex New Zealand
Tasman Insulation and
Forman Building Systems
Iplex New Zealand
Humes
Fletcher Steel
Altus JV
Divisional Review
Financial Summary
Six months ended 31 December
NZ$m2021
2020
Restated
(1)
Gross revenue765700
External revenue613553
EBIT 96102
EBIT margin12.5%14.6%
Funds870683
Trading cash flow40153
Capital expenditure7940
Quarter ended 31 December
NZ$m20212020
EBIT 6748
EBIT margin15.5%13.9%
EBIT for six months ended 31 December
NZ$m2021
2020
Restated
(1)
Building Products6684
Steel3018
Total96102
(1)
The comparatives have been restated as a result of 1) a change in accounting policy as
detailed in note 1 and presented in note 9 of the financial statements and 2) a change in
segmental classification as a result of Forman Building Systems (business unit previously
within the Distribution division) being reclassified into the Building Products division, as
a result of Forman Building Systems combining with Tasman Insulation New Zealand.
This principally impacts the comparative Gross Revenue (June 2021: $35 million,
December 2020: $17 million), External Revenue (June 2021: $33 million, December
2020 $16 million) and Funds (June 2021: $24 million, December 2020: $24 million) base
recognised, with no significant impact to the remaining segmental disclosures.
Fletcher Building Limited 2022 Interim Financial Results
10

The Distribution division reported gross revenue of
$866 million, which was 4% higher than the prior
period. EBIT was $54 million, compared to $57
million in the prior period.
Following the COVID-19 lockdowns in the first quarter, the division
delivered strong year-on-year growth. Second quarter revenues were
20% higher and EBIT 62% higher than the prior period. Second
quarter EBIT margin of 8.5% was 230bps ahead of the prior period.
Outside of the lockdown period, the division delivered significant
revenue growth across all geographical segments – most prominently
in Auckland, followed closely by the lower North Island and the lower
South Island. The growth was particularly evident in the timber,
cladding and frame and truss categories. Market demand has
outstripped industry capacity in these areas, as supply chains are
slow to recover from the ongoing impact of the COVID-19 lockdown
and customers seek to ensure supply constraints do not impact
build timelines.
Strong EBIT margins in the second quarter are reflective of the
operating leverage of higher sales over a largely fixed cost base, as
well as a continuing focus on the businesses customer and efficiency
programmes – especially in digital services and freight optimisation.
Trading cash flow for the division of $35 million was lower than the
comparative period’s $65 million. This was a result of the additional
working capital requirements driven by the higher activity levels,
as well as by decisions to hold higher safety stock in certain areas,
enabling the business to better meet customer demand in the face
of supply chain inconsistency and supplier allocations. The second
quarter sales growth drove an increase in trade debtors, however cash
collection remains high, with customer liquidity remaining robust.
Capital expenditure in the period was $3 million, with investment
in the division’s digital programme now classified as operating
expenditure under the new cloud computing accounting policy.
The division’s digital programme has maintained momentum
throughout the half. In Mico, the consumer website has been
refreshed and the trade digital programme of work is now underway.
The programme, being run in conjunction with Tradelink in Australia,
will leverage PlaceMakers technology to enhance the customer
experience. In PlaceMakers, sales transacted through e-commerce
tools continues to grow, and the improvements in e-commerce
capability have enabled the business to increase the use of data
analytics to create actionable customer insights. This will continue to
enable enhancements in the customer journey.
The programme of rolling individual branches into operating Hubs
continues, with two additional Hubs scheduled to go live early in
the second half in the lower North Island. The property footprint
also continues to be a focus with the recently opened branches of
Mico Matamata, Mico Upper Hutt, PlaceMakers Warkworth and the
refurbished PlaceMakers Levin branch. The new Dunedin branch and
the refurbished Mangawhai branch are both scheduled to open in the
second half of the year.
Six months ended 31 December
NZ$m2021
2020
Restated
(1)
Gross revenue866835
External revenue854822
EBIT 5457
EBIT margin6.2%6.8%
Funds195162
Trading cash flow3565
Capital expenditure34
Quarter ended 31 December
NZ$m20212020
EBIT 4226
EBIT margin8.5%6.2%
Distribution
Financial Summary
PlaceMakers
Mico
Divisional Review
(1)
The comparatives have been restated as a result of 1) a change in accounting policy as
detailed in note 1 and presented in note 9 of the financial statements and 2) a change in
segmental classification as a result of Forman Building Systems (business unit previously
within the Distribution division) being reclassified into the Building Products division, as
a result of Forman Building Systems combining with Tasman Insulation New Zealand.
This principally impacts the comparative Gross Revenue (June 2021: $35 million,
December 2020: $17 million), External Revenue (June 2021: $33 million, December
2020 $16 million) and Funds (June 2021: $24 million, December 2020: $24 million) base
recognised, with no significant impact to the remaining segmental disclosures.
Fletcher Building Limited 2022 Interim Financial Results
11

Divisional Review
The Concrete division reported gross revenue of
$428 million, in line with the prior period. EBIT
excluding significant items was $61 million, also in
line with the prior period.
Following the COVID-19 lockdowns in the first quarter, the division
delivered strong year-on-year growth. Second quarter revenues were
14% higher and EBIT 40% higher than the prior period. Second
quarter EBIT margin of 17.2% was 320bps ahead of the prior period.
Outside of the lockdown period, the division experienced robust
demand across all key product segments, with volumes well ahead
of the prior period. These market conditions coupled with the
division’s differentiated product offering, debottlenecking of key
operations, good pricing discipline, and targeted share gains enabled
the division to deliver the strong second quarter revenue growth.
With the current strong levels of market activity, Golden Bay Cement
(GBC) moved to reduce exports into the Pacific Islands in HY22 to
support sales into the higher-margin New Zealand business. GBC
has also made targeted use of third-party supply in New Zealand,
focused on sales regions where it is efficient to do so from a supply
chain perspective.
The division’s earnings and margin momentum reflect a sustained
programme of work over recent years. This programme has been
focused on: targeted volume growth through improved customer
service and product offerings; strong cost control through
manufacturing and supply chain optimisation; investment discipline;
and a lean and agile support organisation. In the current period,
it was notable that the GBC waste tyre facility (commissioned in
February 2021) enabled the business to reduce its energy costs,
with higher coal substitution rates offsetting the impact of elevated
electricity costs.
Trading cash flow for the division was $72 million, a decrease of 18%
on the prior period driven by a rebuild of working capital levels to
service the current strong market demand.
Capital expenditure in the period of $35 million primarily comprised
land purchases to secure long-term quarry resources, as well
as continued investment in the renewal and debottlenecking of
key operations.
The division’s strategic focus continues to be on three key pillars,
namely: sustainability, innovation and digital. On sustainability, a key
achievement in the period was the further refinements of the waste
tyre project at GBC Portland, which lifted the rate of coal substitution
in the cement manufacturing process from approximately 35%
to 50%, delivering further reductions in emissions. This project
reinforces GBC's commitment to being the producer of New
Zealand’s lowest carbon cement, which is materially lower in carbon
than imported cement alternatives.
The division is implementing an Innovation Lab to fast track the
go-to-market of new products and solutions. The Innovation Lab
is expected to go-live in mid-2022 and will support the Concrete
division to remain at the forefront of innovative construction material
solutions in the New Zealand market.
Several digital initiatives were delivered in the period, including: the
continued evolution of Firth’s ready-mix online sales portal to help
deliver on an enhanced customer experience; and an upgrade of
GBC's ERP, which will assist in unlocking operational and supply
chain efficiencies.
Six months ended 31 December
NZ$m2021
2020
Restated
(1)
Gross revenue428430
External revenue301291
EBIT before significant items
(2)
6162
EBIT margin before significant
items
(2)
14.3%14.4%
Significant items
(3)
-5
Funds586585
Trading cash flow7288
Capital expenditure3511
Quarter ended 31 December
NZ$m20212020
EBIT before significant items
(2)
4230
EBIT margin before significant
items
17.2%14.0%
Concrete
Financial Summary
Firth Industries
Golden Bay Cement
Winstone Aggregates
(1)
The comparatives have been restated as a result of a change in accounting policy as
detailed in note 1 and presented in note 9 of the financial statements.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited’s
interim financial statements for the period ended 31 December 2021.
(3)
Details of significant items can be found in note 2.1 of the financial statements.
Fletcher Building Limited 2022 Interim Financial Results
12

The Australia division reported gross revenue of
$1,388 million, in line with the prior period. EBIT
before significant items was $45 million, compared
with $51 million in the prior period. In local currency
and adjusting for the divestment of the Rocla
business, gross revenue increased 6% and EBIT grew
5% compared to the prior period.
Market activity in Australia remains robust, particularly in the
residential segment. Activity levels were somewhat subdued in HY22
by the various COVID-19 restrictions on the East Coast, particularly
in the first quarter. The Australia division’s profitability was impacted
by approximately $5 million in the first quarter, notably due to the
restrictions on Additions & Alterations (A&A) work, which is a key
segment for the higher-margin Laminex business. As restrictions
eased in the second quarter, the division’s performance showed good
momentum. Adjusting for the divestment of the Rocla business,
second quarter EBIT was 23% ahead of the prior period and
EBIT margins lifted to 4.1%, 60bps ahead of the prior period. This
performance momentum is expected to continue into the second half
of the year. Second half margins are expected to be a further uplift
on the second quarter result, setting up the division well to deliver its
FY23 target of margins of at least 5%.
Significant input cost inflation was also a feature of the HY22 trading
environment. The division’s improved pricing disciplines and governance
ensured higher input costs were recovered in most areas, however a
timing lag between some commodity price rises (e.g. resin, steel) and
sales price increases resulted in an unfavourable impact in the period in
some businesses.
Building Products Australia’s ongoing operations delivered revenue
growth of 4% and EBIT before significant items of $33 million was
14% higher than the prior period. Laminex earnings declined 10%
due to the constraints on A&A work and planned manufacturing
maintenance to deliver improved operational effectiveness. Underlying
performance in Laminex remained strong, with introduction of new
product ranges and digital capability, and the pilot launch of the
new Haven Kitchens offer. Fletcher Insulation grew revenues by 6%
and earnings by 33%, driven by pricing activities and lower costs
to manufacture and distribute following the rationalisation of the
business’s operations over the past three years. In Iplex, revenue
increased by 24% with early signs of renewed market activity
and the business returned to profitability, also benefiting from the
simplification of its business model and optimised manufacturing base.
Distribution Australia reported revenues 1% below the prior period,
while EBIT before significant items increased by 13%. Increased
earnings were a result of ongoing growth in the key small to medium
(SME) plumber segment and in own brand and digital sales. The
Tradelink consumer transactional website, launched in FY21, is
delivering well ahead of plan and is providing a new revenue stream
and higher margins. Tradelink will complement this with the launch
of a transactional business-to-business digital platform in the second
half of FY22. The Oliveri business continues to gain share, both in its
traditional kitchen sink and tap market and through its push into the
bathroom category.
Six months ended 31 December
NZ$m2021
2020
Restated
(1)
Gross revenue1,3881,390
External revenue1,3541,350
EBIT before significant items
(2)
4551
EBIT margin before significant
items
(2)
3.2%3.7%
Significant items
(3)
(47)(87)
Trading cash flow(30)51
Funds1,3201,353
Capital expenditure118
Quarter ended 31 December
NZ$m20212020
EBIT before significant items
(2) (4)
2722
EBIT margin before significant
items
4.1%3.5%
Australia
Financial Summary
Laminex Australia
Iplex Australia
Fletcher Insulation
Building Products Australia:
Divisional Review
Tradelink
Oliveri Solutions
Stramit
Distribution Australia:
Steel Australia:
EBIT for six months ended 31 December
NZ$m2021
2020
Restated
(1)
Building Products
Australia
3034
Distribution Australia98
Steel Australia1013
Divisional costs(4)(4)
Total4551
(1)
The comparatives have been restated as a result of a change in accounting policy as
detailed in note 1 and presented in note 9 of the financial statements.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited’s
interim financial statements for the period ended 31 December 2021.
(3)
Details of significant items can be found in note 2.1 of the financial statements.
(4)
Excludes Rocla divested in August 2021.
Fletcher Building Limited 2022 Interim Financial Results
13

Australia (Continued)
Steel Australia revenue grew by 11% while EBIT before significant
items declined to $10 million, compared to $13 million in the prior
period. Domestic and international steel supply were constrained
in HY22, and rapid increases in steel costs unfavourably impacted
earnings. Price increases are expected to drive improved margins in
the second half. Positively, the business continues to gain share in
the higher-margin sheds and doors segments.
Significant item charges in the division were $47 million, primarily
relating to the reclassification of the currency translation
reserve through the income statement following the sale of
the Rocla business, which was completed in August.
Trading cash outflows were $30 million, or $18 million excluding
significant items. The cash flow result reflected continued tight
debtor controls offset by targeted investments in inventory to
overcome expected supply chain constraints. This has positioned the
division to meet customer demand expectations in the second half.
Capital expenditure in the period was $11 million.
The division’s strategy continues to be focused on driving targeted
growth across a significantly more efficient operational platform
and cost base. The division continues to drive improved customer
service, and investments (both capital and operating expenditure)
are focused on new product development, digital innovation, and
manufacturing automation. Within this, the division is exploring
innovative new materials with the potential to improve both product
performance and sustainability.
Fletcher Building Limited 2022 Interim Financial Results
14

Divisional Review
The Residential and Development division reported
gross revenue of $318 million, a decrease of 11%
compared to the prior period. EBIT for the division
of $112 million was $50 million or 81% higher than
the prior period.
The Residential business delivered EBIT of $68 million, ahead of the
prior period’s $62 million. A total of 278 units were taken to profit,
compared to 515 units in the prior period. Sales volumes in HY22
were impacted by delays to house construction during the first
quarter lockdown. Positively, this impact was more than offset by
the strong market demand for houses, which saw significant price
growth and margin expansion in both the Auckland and Canterbury
markets. The average price of units sold was 33% higher than the
prior period.
The Residential EBIT result in the current period included a
revaluation gain of $9 million from the transfer of land from
Fletcher Living to Vivid Living, with the business commencing
the construction of its first two retirement villages. Work has also
commenced on several new apartment buildings.
The first Vivid
Living and Apartment sales are expected in FY23.
Clever Core made an EBIT loss of $2 million, in line with the prior
year. Increased sales to Fletcher Living are targeted for the second
half of the year, along with homes for two external customers, as the
business continues to scale its volumes.
The Industrial Development business delivered EBIT of $47 million.
This was signi
ficantly higher than the prior period and is the result of
two key transactions: the sale of the Rocla Emu Plains site in Penrith,
and the Fletcher Insulation site at Rooty Hill, NSW.
Divisional funds employed were $649 million at 31 December 2021,
compared to $534 million at 30 June 2021. The division's funds
comprises principally housing land and housing work-in-progress of
$444 million and $166 million respectively at 31 December 2021.
Land held for resale is held on balance sheet by the division at
historical cost, and so does not include any movement in market
value since the time of purchase. The increase in funds during
the HY22 period reflects a previously signalled rebuild of land and
housing work-in-progress to support the division’s growth, and
follows a significant draw-down of stocks in FY21.
Consistent with this growth strategy, the division increased its
committed land backlog to 4,500 residential lots at 31 December
2021, an increase of circa 500 lots since 30 June 2021. The backlog
consists of 2,503 residential lots and two rural properties held on
balance sheet, with a further 2,037 units of both zoned and future
urban zoned land under unconditional contracts.
Looking ahead, the division remains focused on scaling its housing,
apartments, and retirement offers to circa 1400-1500 units in
FY25, while maintaining industrial development earnings of circa
$25 million per annum. In the second half of FY22, there are no
material industrial development transactions expected, but the
number of house sales are expected to be comfortably higher than
the equivalent period in FY21. The Apartments and Vivid Living
businesses are focused on progressing construction of new sites in
Auckland, with Clever Core focused on improvement manufacturing
and installation productivity and looking to sell its first panels to
external customers.
Six months ended 31 December
NZ$m2021
2020
Restated
(1)
Gross revenue318356
External revenue312351
EBIT 11262
EBIT margin35.2%17.4%
Funds649593
Trading cash flow(1)112
Capital expenditure3-
Quarter ended 31 December
NZ$m20212020
Residential EBIT
(3)
4228
Residential EBIT margin28.6%16.9%
Residential and Development
Financial Summary
Fletcher Living
Vivid Living
Fletcher Apartments
Industrial Development
Clever Core
EBIT for six months ended 31 December
NZ$m2021
2020
Restated
(1)
Residential68
(2)
62
Apartments(1)-
Clever Core(2)(2)
Industrial Development472
Total11 262
(1)
The comparatives have been restated as a result of a change in accounting policy as
detailed in note 1 and presented in note 9 of the financial statements.
(2)
The Residential EBIT result includes a revaluation gain of $9 million from the transfer of
land from Fletcher Living to Vivid Living, with the business commencing the construction
of its first two retirement villages.
(3)
Residential EBIT excluding revaluation gain of $9 million.
Fletcher Building Limited 2022 Interim Financial Results
15

Divisional Review
The Construction division reported gross revenue
of $720 million, which was $69 million or 11%
higher than the prior period. On a reported basis,
EBIT before significant items was a loss of $10
million, compared to a profit of $13 million in the
prior period. Prior to elimination of margin on intra-
Group projects, EBIT before significant items was a
loss of $5 million.
The COVID-19 restrictions had a material impact on the division
in HY22. The August to September lockdown, as well as ongoing
restrictions through the balance of HY22, resulted in lower
productivities and unrecovered plant and labour costs. A portion
of these costs are expected to be recovered through contractual
entitlements, but some claims remain to be settled in the second
half of FY22. New work commencement was also impacted, with
revisions of client programmes to the second half of FY22 and FY23.
Positively, the division continues to make good progress in
rebalancing its future order book to deliver an improved risk profile
and margins. The forward order book was $2.8 billion as at 31
December 2021, broadly in line with the prior period. This includes
smaller self-perform work in Higgins and Brian Perry Civil; national
and local maintenance contracts; and the 10-year Watercare
Enterprise Framework Agreement, which will provide an estimated
$1.3 billion backlog of work for Brian Perry Civil and Infrastructure
over the next nine years. In addition, the division is the preferred
contractor on an additional $0.3 billion of works, including Waka
Kotahi’s AMETI busway alliance project.
The division also continues to make progress in winding down the
remaining legacy projects. Work to complete across the legacy
portfolio is now $0.3 billion. Net cash outflows remaining on the
legacy projects are approximately $100 million.
Against a backdrop of constrained labour market and wage inflation
in the construction sector, the division has established robust
controls on cost and is seeing the benefits of operating efficiencies
as it digitises many of its processes. This resulted in overhead costs
being 7.5% of revenue in HY22, as compared to 8.0% in prior period.
EBIT before significant items for the division in HY22 was a loss
of $10 million, after eliminating $5 million of intra-Group earnings
associated with the construction of the Winstone Wallboards plant.
In the second quarter, the division’s underlying result (i.e. prior to
elimination of intra-Group margin) was a profit of $6 million.
Trading cash flow for the division was an inflow of $2 million,
compared to an outflow of $80 million in the prior period. Cash flow
was supported by resolution of historical claims in Infrastructure and
Higgins. Working capital is a key focus, with client advance payments
offsetting higher inventory levels taken to alleviate supply chain
pressures in key materials such as aggregates and steel.
Capital expenditure in the period of $9 million included cyclical
replacement of bitumen sprayers and pavers in Higgins plus an
additional fleet of crawler cranes to support high volumes of forward
work in Brian Perry Civil.
The division’s ongoing focus is in three key areas: continuing to
build a balanced portfolio of work with an appropriate risk profile,
targeting a divisional EBIT margin of 3%-5%; completion of the
remaining legacy projects within provisions; and ongoing investment
in ‘Fletcher One’ standardised governance and management
framework across the business, including enterprise systems and a
business intelligence platform.
Six months ended 31 December
NZ$m2021
2020
Restated
(1)
Gross revenue720651
External revenue630620
EBIT before significant items
(2)
(10)13
EBIT margin before significant
items
(2)
(1.4%)2.0%
Significant items
(3)
-(1)
Funds210147
Trading cash flow2(80)
Capital expenditure914
Quarter ended 31 December
NZ$m20212020
EBIT before significant items
(2) (4)
612
EBIT before significant items
margin
(4)
1.5%3.7%
Construction
Financial Summary
South Pacific
Brian Perry Civil
Higgins
Buildings
Infrastructure
EBIT for six months ended 31 December
NZ$m2021
2020
Restated
(1)
Higgins(1)16
Other(9)(3)
Total(10)13
(1)
The comparatives have been restated as a result of a change in accounting policy as
detailed in note 1 and presented in note 9 of the financial statements.
(2)
EBIT before significant items is a non-GAAP measure used by management to assess
the performance of the business and has been derived from Fletcher Building Limited’s
interim financial statements for the period ended 31 December 2021.
(3)
Details of significant items can be found in note 2.1 of the financial statements.
(4)
Prior to elimination of intra-Group profit.
Fletcher Building Limited 2022 Interim Financial Results
16

Consolidated Income Statement (Unaudited)
For the six months ended 31 December 2021
Notes
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)

NZ$M
Year ended
June 2021
Restated
(1)

NZ$M
Revenue
4,064
3,987 8,120
Cost of goods sold
(2,886)
(2,839)(5,778)
Gross margin
1,178
1,148 2,342
Selling, general and administration expenses
(865)
(834)(1,693)
Share of profits of associates and joint ventures
10
9 19
Revaluation gain on investment property
9
Significant items2.1
(43)
(86)(128)
Earnings before interest and taxation (EBIT)
289
237 540
Lease interest expense
(30)
(33)(64)
Funding costs
(22)
(23)(44)
Earnings before taxation
237
181 432
Taxation expense4
(63)
(57)(115)
Earnings after taxation
174
124 317
Earnings attributable to non-controlling interests
(3)
(3)(12)
Net earnings attributable to the shareholders171
121 305
Net earnings per share (cents)
Basic
21.0
14.7 37.0
Diluted
20.5
14.2 36.4
Weighted average number of shares outstanding (millions of shares)
Basic
814
824 824
Diluted
864
894 867
Dividends declared per share (cents)
18.0
12.030.0
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9.
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
On behalf of the Board, 16 February 2022
Bruce Hassall
Chair of Directors
Robert McDonald
Director
Fletcher Building Limited 2022 Interim Financial Results
17

Consolidated Statement of Comprehensive Income (Unaudited)
For the six months ended 31 December 2021
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)

NZ$M
Year ended
June 2021
Restated
(1)

NZ$M
Net earnings attributable to shareholders
171
121 305
Net earnings attributable to non-controlling interests
3
3 12
Net earnings
174
124 317
Other comprehensive income
Items that do not subsequently get reclassified to profit or loss:
Movement in pension reserve
18
68
18
68
Items that may be reclassified subsequently to profit or loss in the future:
Movement in cash flow hedge reserve
11
(21)(7)
Movement in currency translation reserve
26
(11)3
37
(32)(4)
Other comprehensive income/(loss)
55
(32)64
Total comprehensive income for the period229
92 381
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9.
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2022 Interim Financial Results
18

Consolidated Statement of Movements in Equity (Unaudited)
For the six months ended 31 December 2021
NZ$MNotesShare capital Retained earningsShare-based payments reserve Cash flow hedge reserve Currency translation reserve Pension reserve TotalNon-controlling interestsTotal equity
Total equity at 30 June 2020
3,280 391 12 (12) (149) (22) 3,500 35 3,535
Change in accounting policies9 (36) (36)(36)
Restated equity at 30 June 2020 3,280 355 12 (12) (149) (22) 3,464 35 3,499
Restated total comprehensive income/(loss) for
the period
121 (21)(11)89 3 92
Movement in non-controlling interests (27)(27)
Dividends paid to shareholders of the parent
Movement in share-based payment reserve4 4 4
Movement in treasury stock(7)(7)(7)
Restated equity at 31 December 20203,273 476 16 (33)(160)(22)3,550 11 3,561
Restated equity at 30 June 2020 3,280 355 12 (12) (149) (22) 3,464 35 3,499
Restated total comprehensive income/(loss)
for the period
305 (7)3 68 369 12 381
Movement in non-controlling interests (31)(31)
Dividends paid to shareholders of the parent (99) (99)(99)
Movement in share-based payment reserve3 1 16 20 20
Repurchase of shares(24) (24)(24)
Movement in treasury stock(11)(11)(11)
Restated equity at 30 June 20213,248 562 28 (19)(146)46 3,719 16 3,735
Total comprehensive income for the period171 11 26 18226 3 229
Movement in non-controlling interests (6)(6)
Dividends paid to shareholders of the parent (148)(148)(148)
Movement in share-based payment reserve3 3 (7)(1)(1)
Repurchase of shares(83)(83)(83)
Total equity at 31 December 20213,168 588 21 (8)(120)643,71313 3,726
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2022 Interim Financial Results
19

Consolidated Balance Sheet (Unaudited)
As at 31 December 2021
AssetsNotes
Dec 2021
NZ$M
Dec 2020
Restated
(1)

NZ$M
June 2021
Restated
(1)

NZ$M
Current assets:
Cash and cash equivalents
409
618 666
Current tax assets62 9
Contract assets2.6
60
15 37
Derivatives
11
7 9
Debtors
1,097
1,029 1,133
Inventories
1,426
1,126 1,186
Total current assets before held for sale3,003
2,857 3,040
Assets classified as held for sale2.5109 85
Total current assets3,003
2,966 3,125
Non-current assets:
Property, plant and equipment
1,622
1,541 1,586
Investment property
26
Intangible assets
1,078
1,069 1,070
Right-of-use assets
1,337
1,393 1,392
Investments in associates and joint ventures
194
159 173
Debtors
53
Inventories
190
305 272
Retirement plan assets
125
41 108
Derivatives
10
8 10
Deferred tax assets
212
248 238
Total non-current assets4,847
4,764 4,849
Total assets7,850
7,730 7,974
Liabilities
Current liabilities:
Creditors, accruals and other liabilities
1,222
1,034 1,314
Provisions
157
199 178
Lease liabilities
179
172 178
Current tax liabilities
31
5
Derivatives
11
22 14
Contract liabilities2.6
123
177 87
Borrowings5
122
109 106
1,845
1,718 1,877
Total current liabilities before held for sale2.533 29
Total current liabilities1,845
1,751 1,906
Non-current liabilities:
Creditors, accruals and other liabilities
34
46 23
Provisions
38
25 30
Lease liabilities
1,458
1,528 1,519
Derivatives
5
23 10
Borrowings5
744
796 751
Total non-current liabilities
2,279
2,418 2,333
Total liabilities4,124
4,169 4,239
Equity
Share capital
3,168
3,273 3,248
Reserves
545
277 471
Shareholders' funds
3,713
3,550 3,719
Non-controlling interests
13
11 16
Total equity 3,726
3,561 3,735
Total liabilities and equity7,850
7,730 7,974
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9.
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2022 Interim Financial Results
20

Consolidated Statement of Cash Flows (Unaudited)
For the six months ended 31 December 2021
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)

NZ$M
Year ended
June 2021
Restated
(1)

NZ$M
Cash flow from operating activities
Receipts from customers
4,062
3,968 7,927
Dividends received3 3
Payments to suppliers, employees and other
(3,856)
(3,478)(6,932)
Interest paid
(49)
(66)(116)
Income tax paid(3)(3)
Net cash from operating activities157
424 879
Cash flow from investing activities
Sale of property, plant and equipment
1
14 20
Sale of subsidiaries
51
Purchase of property, plant and equipment and intangible assets
(140)
(78)(221)
Purchase of investment property
(3)
Investments in associates and joint ventures
(12)
Net cash from investing activities(103)
(64)(201)
Cash flow from financing activities
Issue of capital notes42 142
Repurchase of capital notes(145)
Repurchase of shares
(83)
(7)(24)
Repurchase of shares - transferred to treasury stock(11)
Drawdown/(repayment) of borrowings
10
(755)(761)
Principal elements of lease payments
(89)
(91)(182)
Contributions from/(distribution to) non-controlling interests
2
(27)(31)
Dividends paid to shareholders of the parent
(148)
(99)
Net cash from financing activities(308)
(838)(1,111)
Net movement in cash held
(254)
(478)(433)
Add: opening cash and liquid deposits
666
1,104 1,104
Effect of exchange rate changes on net cash
(3)
(8)(5)
Closing cash and deposits409
618 666
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9.
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Fletcher Building Limited 2022 Interim Financial Results
21

Notes to the Consolidated Financial Statements
1. Corporate information
The condensed consolidated interim financial statements presented are those of Fletcher Building Limited and its subsidiaries (the "Group").
The Company is registered under the Companies Act 1993 and is a Financial Markets Conduct Act (FMCA) 2013 reporting entity in terms of the
Financial Reporting Act 2013. The Group is a for-profit entity.
Basis of preparation
The condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New
Zealand and the requirements of the Financial Markets Conduct Act 2013 and the Main Board/Debt Market Listing Rules of NZX Limited.
The condensed consolidated interim financial statements comply with NZ IAS 34 Interim Financial Reporting and do not include all the information
and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial
statements as at 30 June 2021. In complying with NZ IAS 34, these statements comply with International Accounting Standard 34 - Interim
Financial Reporting.
The accounting policies have been applied consistently by the Group and are in line with prior year, except for the change in accounting policy on
cloud computing arrangements as disclosed below. Where necessary, certain comparative information has been reclassified to conform to changes
in presentation in the current year.
Changes in accounting policies, interpretations and agenda decisions
Configuration or Customisation Costs in a Cloud Computing Arrangement (NZ IAS 38 Intangible Assets)
In April 2021, the International Financial Reporting Standards Interpretations Committee (IFRIC) issued a final agenda decision, Configuration or
Customisation Costs in a Cloud Computing Arrangement. The IFRIC concluded that costs incurred in configuring or customising software in a
cloud computing arrangement can only be recognised as intangible assets if the activities create an intangible asset that the entity controls and the
intangible asset meets the recognition criteria.
The Group has historically capitalised costs incurred in configuring or customising software applications in a cloud computing arrangement as
intangible assets. The adoption of the above agenda decisions has resulted in an expense in the consolidated income statement in the current year
and derecognition of previously capitalised costs as an opening balance adjustment to the prior year. The new policy is detailed below with the
impact of adoption presented in note 9.
Cloud computing arrangements
As a result of the agenda decision, the Group now recognises costs incurred in configuring or customising cloud application software as
an intangible asset only if the activities create a resource that the Group can control and from which it expects to benefit. Such costs are
amortised over the estimated useful life of the software application on a straight-line basis. The remaining useful life is reviewed at least at
the end of each reporting period and any changes are treated as changes in accounting estimates.
Where the Group cannot determine whether it has control of the cloud application software, the arrangement is deemed to be a service
contract and any implementation costs, i.e. cost incurred to configure or customise the cloud application software, are expensed to the
consolidated income statement as incurred.
Where the provider of the cloud application software provides both configuration and customisation services, judgement is required to
determine whether these services are distinct from the underlying use of the software application. Distinct configuration and customisation
costs are expensed as incurred as the software application is configured or customised (i.e. upfront). Non-distinct configuration and
customisation costs, that significantly enhance or modify the cloud-based application, are recognised as a prepaid asset and expensed over
the contract term on a straight-line basis.
Fletcher Building Limited 2022 Interim Financial Results
22

Notes to the Consolidated Financial Statements (Continued)
2. Key estimates, judgements and other financial information
2.1 SIGNIFICANT ITEMS
The Group makes certain significant item adjustments to the statutory profit measures in order to derive many of these underlying
performance non-GAAP measures. The Group’s policy is to exclude items that are considered to be significant in both nature and/or quantum
and where treatment as an adjusted item provides stakeholders with additional useful information to assess the year-on-year underlying
performance of the Group.
As at 31 December 2021 significant items totalled $43 million (31 December 2020: $86 million) of which $42 million relates to the foreign
currency translation reserve reclassified to the consolidated income statement as a result of the divestment of the Rocla business.
2.2 INTANGIBLE ASSET IMPAIRMENT TESTING
The Group performs a detailed impairment assessment annually and considers indicators of impairment at each interim reporting date. At
31 December 2021, the Group performed a review of indicators of impairment for all cash-generating units with significant intangible asset
balances. No indicators of impairment have been identified as a result of this review.
2.3 SUPPLEMENTARY DISCLOSURES: EARNINGS PER SHARE
The below disclosure has been included to provide additional useful information by removing the impact of significant items in the current and
prior year, and the resulting impact on the earnings per share measure.
The effect of significant items on earnings per share is as follows:
Six months
Dec 2021
NZ$M
Six months
Dec 2020
NZ$M
Year ended
June 2021
NZ$M
Net earnings after taxation (as per consolidated income statement)
171
121305
Add back: Significant items after taxation
43
74108
Net earnings before significant items
214195413
Net earnings per share before significant items (cents)
26.3
23.750.1
Net earnings per share - as reported per income statement (cents)
21.0
14.7 37.0
2.4 SHARE BUYBACK
The Group commenced an on-market share buyback in June 2021. For the six months to 31 December 2021, the Group repurchased
11,880,009 shares for total consideration of $83 million. The purchased shares were subsequently cancelled, leaving the total number of shares
on issue at 31 December 2021 of 809,272,010 shares. In line with NZ IFRS, $0.1 million of transaction costs relating to the buyback were offset
against equity.
2.5 ROCLA SALE
On 31 August 2021 the Group divested the Rocla business, a wholly owned subsidiary reported under the Australia segment, for a total
purchase price of $58 million. This resulted in a loss on sale of $48 million.
Six months
Dec 2021
NZ$M
Sales proceeds net of transaction costs, provisions and working capital adjustments44
Carrying value50
(6)
Less: reclassification of foreign currency translation reserve
(42)
Loss on sale(48)
Fletcher Building Limited 2022 Interim Financial Results
23

Notes to the Consolidated Financial Statements (Continued)
Assets and liabilities
The carrying value of assets and liabilities as at the date of sale were:
31 Aug 2021
NZ$M
June 2021
NZ$M
Debtors17 21
Inventories48 49
Property, plant and equipment 8 10
Deferred tax assets4 5
Total assets77 85
Creditors, accruals and other liabilities26 27
Provisions1 2
Total liabilities27 29
2.6 SUPPLEMENTARY DISCLOSURES: CONSTRUCTION ACCOUNTING
Construction work-in-progress is stated at cost plus profit recognised to date, less progress billings. Cost includes all expenditure directly
related to specific projects and an allocation of fixed and variable overheads incurred in the Group’s contract activities based on normal
operating capacity.
Six months
Dec 2021
NZ$M
Six months
Dec 2020
NZ$M
Year ended
June 2021
NZ$M
Construction contracts with cost and margin in advance
60
15 37
Contract assets60
15 37
Construction contracts with billings in advance of costs and margin
123
177 87
Contract liabilities123
177 87
Estimates and judgements are made relating to a number of factors when assessing construction contracts. These primarily include the
programme of work throughout the contract period, assessment of future costs after considering changes in the scope of work, maintenance
and defect liabilities, expected inflation (for unlet sub-trades) and performance bonuses or penalties. Construction projects are inherently
more uncertain earlier in their lifetime, which leads to a number of significant estimates and judgements being made at these early stages.
The significant judgements inherent in accounting for the Group’s most material construction projects are:
–The extent to which a project progresses in line with the complex project programme and timetable previously formed and the resulting
impact of any programme delays or gains on project costs, especially project overheads (preliminary and general costs) and any liquidated
or other damages;
–Sub-contractor cost, in particular cost that is yet to be agreed in scope or price (including inflationary pressures) or that relate to
programme prolongation;
–The outcome of ongoing commercial negotiations, including elements of variable consideration and changes in project scope; and
–Future weather and ground conditions.
Status of construction projects ( > $200m original contract value) as at 31 December 2021
A summary of total contracted work under construction and details of the major projects and their approximate stage of completion are
disclosed to demonstrate the uncertainty that remains on these projects.
Business unit
Percentage of
completion (% cost)
Forecast
completion*
NZICC Reinstatement - Cost plus marginBuildings62%2025
NZICC - Guaranteed maximum price and fixed price contractBuildings84%2025
Pu
-
hoi to Warkworth - Fixed price contract (Public Private Partnership)Infrastructure77%2023
Hamilton City Edge Expressway - Alliance contractInfrastructure / Higgins94%2022
Peka Peka to O
-
taki Expressway - Fixed price contractInfrastructure / Higgins82%2022
* Calendar year
Fletcher Building Limited 2022 Interim Financial Results
24

Notes to the Consolidated Financial Statements (Continued)
Revenue backlog by business unit as at 31 December 2021
Current revenue backlog
NZ$M
Top 5 projects as a % of
revenue backlog
Buildings
237
99%
Infrastructure
485
70%
Brian Perry Civil
1,190
41%
Higgins
774
45%
South Pacific
107
91%
2,793
N/A
Revenue backlog refers to the level of construction work the Group is contracted to but is not yet complete as at period end. This represents the
performance obligations that are yet to be completed for the construction contracts active as at 31 December 2021. The long-term nature of the
contracts held by the Buildings, Infrastructure, Brian Perry Civil and Higgins businesses will see these performance obligations completed over
a period generally between one to five years, although some may extend longer.
New Zealand International Convention Centre (NZICC)
On 22 October 2019 there was a significant fire at the NZICC project construction site causing damage to both the International Convention
Centre and Hobson Street Hotel. Contract Works and Third-Party Liability insurances are in place on the project, with the Fletcher Construction
Company Limited as an insured party under these policies.
The NZICC project continues to be accounted for under NZ IFRS 15: Revenue from Contracts with Customers and NZ IAS 37: Provisions,
Contingent Liabilities and Contingent Assets.
The Group has assessed all relevant known facts and circumstances related to the estimation of cost to complete and insurance recoveries
and concluded based on current information that there is no additional requirement for provisions in these financial statements. The Group’s
assessment of the cost to complete relies on the application of estimates and judgements (e.g. measurement of remediation’s cost to
complete, the likelihood of receipt of insurance recoveries and quantification of any claims and costs that are outside of insurance cover) and
as such may be subject to change as the project progresses.
3. Segmental information
Segmental information is presented in respect of the Group’s industry and geographical segments. The use of industry segments as the
primary format is based on the Group’s management and internal reporting structure, which recognises groups of assets and operations with
similar risks and returns. Inter-segment pricing is determined on an arm’s length basis.
Industry segments
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)
NZ$M
Year ended
June 2021
Restated
(1)
NZ$M
Gross revenue
Building Products
765
700 1,436
Distribution
866
835 1,679
Concrete
428
430 849
Residential and Development
318
356 734
Construction
720
651 1,456
Australia
1,388
1,390 2,758
Other
5
5 10
Group
4,490 4,367 8,922
Less: intercompany revenue
(426)
(380)(802)
Group external revenue
4,064 3,987 8,120
External revenue
Building Products
613
553 1,134
Distribution
854
822 1,651
Concrete
301
291 583
Residential and Development
312
351 721
Construction
630
620 1,347
Australia
1,354
1,350 2,684
Group
4,064 3,987 8,120
Fletcher Building Limited 2022 Interim Financial Results
25

Notes to the Consolidated Financial Statements (Continued)
Industry segments
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)
NZ$M
Year ended
June 2021
Restated
(1)
NZ$M
EBIT before significant items
Building Products
96
102 198
Distribution
54
57 124
Concrete
61
62 113
Residential and Development
112
62 154
Construction
(10)
13 31
Australia
45
51 102
Corporate
(26)
(24)(54)
Group
332 323 668
Depreciation, depletion and amortisation expense
Building Products
25
28 57
Distribution
24
24 46
Concrete
33
36 71
Residential and Development
1
1 3
Construction
20
19 39
Australia
63
63 126
Corporate
6
5 12
Group
172 176 354
Capital expenditure
Building Products
79
40 111
Distribution
3
4 9
Concrete
35
11 36
Residential and Development
3
1
Construction
9
14 24
Australia
11
8 39
Corporate
16
1 2
Group
15678 222
Funds*
Building Products
870
683 744
Distribution
195
162 177
Concrete
586
585 573
Residential and Development
649
593 534
Construction
210
147 215
Australia
1,320
1,353 1,312
Other (including debt and taxation)
(104)
38 180
Group
3,7263,561 3,735
* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes. Group balances such as borrowings and taxation are allocated to Corporate as
these are managed at a Group level.
(1)
The comparatives have been restated as a result of 1) a change in accounting policy as detailed in note 1 and presented in note 9 and 2) a change in segmental classification as a result of
Forman Building Systems (business unit previously within the Distribution division) being reclassified into the Building Products division, as a result of Forman Building Systems combining
with Tasman Insulation New Zealand. This principally impacts the comparative Gross Revenue (June 2021: $35 million, December 2020: $17 million), External Revenue (June 2021:
$33 million, December 2020 $16 million) and Funds (June 2021: $24 million, December 2020: $24 million) base recognised, with no significant impact to the other segment disclosures.
Fletcher Building Limited 2022 Interim Financial Results
26

* Funds represent the external assets and liabilities of the Group and are used for internal reporting purposes. Group balances such as borrowings and taxation are allocated to Corporate as
these are managed at a Group level.
+ Excludes deferred tax assets, retirement plan surplus and financial instruments.
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9.
Notes to the Consolidated Financial Statements (Continued)
Geographic segments
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)
NZ$M
Year ended
June 2021
Restated
(1)
NZ$M
External Revenue
New Zealand
2,573
2,582 5,237
Australia
1,427
1,349 2,773
Other jurisdictions
64
56 110
Group
4,064 3,987 8,120
EBIT before significant items
New Zealand
243
270 510
Australia
86
49 150
Other jurisdictions
3
4 8
Group
332 323 668
Funds*
New Zealand
2,487
2,003 2,210
Australia
1,378
1,400 1,332
Other (including debt and taxation)
(139)
158 193
Group
3,7263,561 3,735
Non-current assets
+
New Zealand
2,838
2,785 2,811
Australia
1,560
1,631 1,630
Other
49
51 52
Group
4,447 4,467 4,493
4. Taxation expense
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)
NZ$M
Year ended
June 2021
Restated
(1)
NZ$M
Earnings before taxation
237
181432
Taxation at 28 cents per dollar
66
51121
Adjusted for:
Non-assessable income
(4)
(6)(9)
Non-deductible expenses
2
154
Tax losses for which no deferred tax asset was recognised
10
17
Utilisation of previous unrecognised tax losses
(12)
(1)(17)
Tax in respect of prior years
1
(2)(1)
Tax expense on earnings635711 5
Tax expense on earnings before significant items
63
69136
Tax benefit on significant items(12)(21)
635711 5
Total current taxation expense
63
58129
Total deferred taxation benefit(1)(14)
635711 5
Fletcher Building Limited 2022 Interim Financial Results
27

Notes to the Consolidated Financial Statements (Continued)
5. Borrowings
Six months
Dec 2021
NZ$M
Six months
Dec 2020
NZ$M
Year ended
Jun 2021
NZ$M
Private placements
475
476 476
Bank loans
Capital notes
361
406 361
Other loans
30
23 20
Carrying value of borrowings (as per consolidated balance sheet) 866 905 857
Less: value of derivatives used to manage changes in hedged risks on debt instruments
(15)
(18)(18)
Economic debt 851 887 839
Less: Cash and cash equivalents
(409)
(618)(666)
Net debt 442 269 173
Carrying value of borrowings included within the balance sheet as follows:
Six months
Dec 2021
NZ$M
Six months
Dec 2020
NZ$M
Year ended
Jun 2021
NZ$M
Current borrowings
122
109 106
Non-current borrowings
744
796 751
Carrying value of borrowings (as per consolidated balance sheet) 866 905 857
The Group extended Tranche 1, being $525 million, of the $925 million syndicated revolving credit facility from July 2022 to July 2024 ($200
million) and November 2026 ($325 million). As part of the refinancing of Tranche 1, the Group agreed a number of positive amendments to the
terms of the syndicated facility including replacing senior and total interest cover covenants with a senior interest cover covenant only.
6. Fair value measurement
Financial instruments are measured at fair value using the following fair value measurement hierarchy:
(Level 1) Quoted prices (unadjusted) in active markets for identical assets or liabilities.
(Level 2) Inputs that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) other than quoted prices
included within level 1.
(Level 3) Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
All of the Group's derivatives are in designated hedge relationships and are measured and recognised at fair value. All derivatives are level 2
valuations based on accepted valuation methodologies. Forward exchange fair value is calculated using quoted forward exchange rates and
discounted using yield curves derived from quoted interest rates matching maturity of the contract. The fair value of electricity price swaps is
measured using a derived forward curve and discounted using yield curves derived from quoted interest rates matching the maturity of the
contract. Interest rate derivatives are calculated by discounting the future principal and interest cash flows at current market interest rates that
are available for similar financial instruments. The interest rates across all currencies used to discount future principal and interest cash flows
are between (0.6)% and 4.1% (December 2020: (0.6)% and 4.7%; June 2021: (0.6)% and 2.5%) including margins, for both accounting and
disclosure purposes.
The net deferred tax asset balance of $212 million at 31 December 2021 largely comprises leases, Construction provisions and Australian tax
losses incurred in the prior periods. It is expected there will be sufficient future earnings in New Zealand and Australia to utilise the deferred tax
asset in each of these jurisdictions.
Fletcher Building Limited 2022 Interim Financial Results
28

Notes to the Consolidated Financial Statements (Continued)
7. Contingencies and commitments
Land and property commitments
At 31 December 2021, the Group's Residential and Development division had commitments to purchase land and building services of $622
million (June 2021: $430 million) of which $157 million is expected to be delivered in the six months to 30 June 2022.
There have been no other material movements in capital expenditure commitments, contingent liabilities or contingent assets to those
disclosed in the 30 June 2021 annual report.
Silicosis
As at 31 December 2021, Laminex Australia (together with other engineered stone manufacturers and fabricators) was the subject of a
number of silica related personal injury claims based in Queensland. The Group has accrued for this known exposure in Queensland.
One silica related injury claim has been received outside of Queensland. The Group has concluded it is too early to make a reliable estimate
of any future potential claims and the extent of a liability (if any) Laminex Australia may have in states outside Queensland. Accordingly, the
Group has not recognised any provisions in respect of possible future silicosis claims as at 31 December 2021.
8. Reconciliation of net earnings to net cash from operating activities
Six months
Dec 2021
NZ$M
Six months
Dec 2020
Restated
(1)

NZ$M
Year ended
June 2021
Restated
(1)

NZ$M
Net earnings
171
121 305
Earnings attributable to minority interest
3
3 12
174 124 317
Add/(less) non-cash items:
Depreciation, depletions and amortisation
172
176 354
Other non-cash items
(34)
61 91
Taxation
63
54 112
(Gain)/loss on disposal of businesses and property, plant and
equipment
43
(2)3
244 289 560
Net working capital movements
Residential and Development
(107)
50 105
Construction
11
(101)(179)
Other divisions:
Debtors
35
64 (62)
Inventories
(122)
42 (22)
Creditors
(78)
(44)160
(261)11 2
Net cash from operating activities157 424 879
(1)
The comparatives have been restated as a result of a change in accounting policy as detailed in note 1 and presented in note 9.
Fletcher Building Limited 2022 Interim Financial Results
29

9. Change in accounting policy
Configuration or Customisation Costs in a Cloud Computing Arrangement (NZ IAS 38 Intangible Assets)
During the six months to 31 December 2021 the Group revised its accounting policy in relation to configuration and customisation costs
incurred in implementing cloud computing arrangements, in response to the International Financial Reporting Standards Interpretations
Committee (IFRIC) agenda decision clarifying its interpretation of NZ IAS 38 Intangible Assets. The new accounting policy is disclosed in note
1 Basis of preparation. The Group's retrospective assessment and impact on reported results is disclosed within this note.
The Group carried out a detailed assessment to quantify the impact of the change in accounting policy during the six months to 31 December
2021. All cloud computing arrangements were identified along with all previously capitalised costs associated with these arrangements.
A review was completed in conjunction with the Group finance and technology teams to determine whether these costs were incurred in
relation to cloud application software that the Group controls.
The Group has applied judgement in determining whether it controls the cloud application software it utilises based on the underlying
contractual terms it has entered into with its providers. The Group has also applied judgement in determining whether any configuration
and customisation services provided directly by the application providers are distinct to be recognised separately from access rights granted
under the service agreements.
For those arrangements where it was determined that the Group does not control the cloud application software, previously capitalised costs
that did not meet the asset recognition criteria, have been retrospectively derecognised in the year they were incurred.
This resulted in a reduction in the intangible asset value by $50 million at 30 June 2021 (December 2020: $49 million) with an associated
reduction in amortisation expense of $5 million for the six months to 31 December 2021 (June 2021: $9 million and December 2020: $4
million). The decrease in amortisation expense to the consolidated income statement has been offset for the six months to 31 December
2021 by $7 million (June 2021: $10 million and December 2020: $4 million) of configuration and customisation costs that would have been
previously capitalised. The net impact of these changes are reflected in selling, general and administration costs in the consolidated income
statement.
The below table reflects the impact of the restatement (as of 1 July 2020) on the comparative information presented in the interim
financial statements:
Published
NZ$M
Adjustment
NZ$M
Restated
NZ$M
Consolidated balance sheet as at 30 June 2021
Intangible assets 1,120 (50) 1,070
Deferred tax assets 224 14 238
Total assets 1,344 (36) 1,308
Reserves 507 (36) 471
Total equity 3,771 (36) 3,735
Consolidated balance sheet as at 31 December 2020
Intangible assets 1,118 (49) 1,069
Deferred tax assets 235 13 248
Total assets 1,353 (36) 1,317
Reserves 313 (36) 277
Total equity 3,597 (36) 3,561
Consolidated income statement for the year to 30 June 2021
Selling, general and administration expenses (1,692) (1) (1,693)
Earnings before taxation 433 (1) 432
Taxation expense (116) 1 (115)
Earnings after taxation 317 317
Basic EPS (cents)37.037.0
Diluted EPS (cents)36.436.4
Consolidated income statement for the six months to 31 December 2020
Selling, general and administration expenses (834) (834)
Earnings before taxation181 181
Taxation expense (57) (57)
Earnings after taxation124 124
Fletcher Building Limited 2022 Interim Financial Results
30

Notes to the Consolidated Financial Statements (Continued)
Published
NZ$M
Adjustment
NZ$M
Restated
NZ$M
Basic EPS (cents)14.714.7
Diluted EPS (cents)14.214.2
Consolidated statement of cash flows for the year to 30 June 2021
Payments to suppliers, employees and other (6,922) (10) (6,932)
Net cash from operating activities 889 (10) 879
Purchase of property, plant and equipment and intangible assets (231) 10 (221)
Net cash from investing activities (211) 10 (201)
Consolidated statement of cash flows for the six months to 31 December 2020
Payments to suppliers, employees and other (3,474) (4) (3,478)
Net cash from operating activities 428 (4) 424
Purchase of property, plant and equipment and intangible assets (82) 4 (78)
Net cash from investing activities (68) 4 (64)
10. Subsequent events
On 16 February 2022, the Directors declared an interim dividend of 18.0 cents per share, payable on Thursday 7 April 2022.
Fletcher Building Limited 2022 Interim Financial Results
31

Independent Auditor’s Review Report to the
Shareholders of Fletcher Building Limited
CONCLUSION
We have reviewed the interim financial statements of Fletcher Building Limited (“the Company”) and its subsidiaries (together “the Group”) on
pages 17 to 31 which comprise the consolidated balance sheet as at 31 December 2021, and the consolidated income statement, consolidated
statement of comprehensive income, consolidated statement of movements in equity and consolidated statement of cash flows for the six
months ended on that date, and a summary of significant accounting policies and other explanatory information. Based on our review, nothing
has come to our attention that causes us to believe that the accompanying interim financial statements on pages 17 to 31 of the Group do not
present fairly, in all material respects the consolidated financial position of the Group as at 31 December 2021, and its consolidated financial
performance and its consolidated cash flows for the six months ended on that date, in accordance with New Zealand Equivalent to International
Accounting Standard 34:
Interim Financial Reporting and International Accounting Standard 34: Interim Financial Reporting.
This report is made solely to the Company's shareholders, as a body. Our review has been undertaken so that we might state to the Company's
shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Company and the Company's shareholders as a body, for our review
procedures, for this report, or for the conclusion we have formed.
BASIS FOR CONCLUSION
We conducted our review in accordance with NZ SRE 2410 (Revised)
Review of Financial Statements Performed by the Independent Auditor of
the Entity
. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Statements section of our
report. We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements.
Ernst & Young provides other assurance related services to the Group. Partners and employees of our firm may deal with the Group on normal
terms within the ordinary course of trading activities of the business of the Group. We have no other relationship with, or interest in, the Group.
DIRECTORS’ RESPONSIBILITY FOR THE INTERIM FINANCIAL STATEMENTS
The Directors are responsible, on behalf of the entity, for the preparation and fair presentation of the interim financial statements in accordance
with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting and International Accounting Standard 34:
Interim Financial Reporting and for such internal control as the Directors determine is necessary to enable the preparation and fair presentation
of the interim financial statements that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting
and International Accounting Standard 34:
Interim Financial Reporting.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform procedures,
consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review
procedures. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing (New Zealand) and consequently do not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on those interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Brent Penrose.
Chartered Accountants
Auckland
16 February 2022
A member firm of Ernst & Young Global Limited
Fletcher Building Limited 2022 Interim Financial Results
32

Fletcher Building HY22 Results Webcast Details ASX Appendix 3A.1 Notification of Dividend

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