Update on NZICC and WIAL Carpark projects

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



Update on NZICC and WIAL Carpark projects

Auckland, 5 February 2024: Fletcher Building (the “Company”) today announced an update on
the New Zealand International Convention Centre and Hobson Street Hotel project (“NZICC”) and
the Wellington International Airport Carpark project (“WIAL Carpark”).
The NZICC project remains on track for completion in late calendar 2024. Progress to date has
included: carparks are now complete; the Hobson Street Hotel is scheduled to be handed over to
the client this month; and steel remediation throughout the International Convention Centre is
98% complete. Despite this progress, actual and expected costs to complete the project have
increased, principally in the areas of steel remediation, internal fit-out, and installation of operating
systems. The increased costs are primarily due to higher levels of subcontractor resource
required to deliver the final stage of the project. In addition, a portion of the Company’s claims
against the project Contract Works Insurance (CWI) may not be recoverable. Based on the latest
cost and revenue forecasts, the Company has determined that it will make an additional provision
on NZICC of $165 million, classified as a Significant Item in its half year 2024 financial statements.
The Company continues to pursue recoveries under the NZICC Third Party Liability (TPL)
insurance policy of more than $100 million. While the Company considers it has good grounds
for its TPL claims, no TPL revenue is included in the current project forecast – in line with
accounting standards.
On the WIAL Carpark project, the Company continues to work with the client to agree a
remediation solution to quality issues and to settle claims. Based on its latest assessment of the
cost of the remediation, the Company has determined that it will make a provision on WIAL
Carpark of $15 million, classified as a Significant Item in its half year 2024 financial statements.
CEO Ross Taylor said: “The NZICC rebuild is a significantly complex and challenging project. It is
disappointing we require further provisions on this project and the WIAL carpark. We remain on
track to complete construction of all legacy projects by the end of calendar 2024, however cost
and revenue risk will remain until we have done so. We will vigorously pursue our claims for
recoveries on the legacy projects, which are likely to take until FY25-26 to settle.”
The Company’s HY24 results and financial statements will be released on Wednesday 14
February 2024.

Conference call to be held today
Fletcher Building management will host a Q&A briefing for investors and analysts today at
12:00pm NZDT / 10:00am AEDT to discuss today’s announcement. A short presentation will be
made available shortly before the briefing begins.

Participants can register for the conference by navigating to the following link:

P a g e | 2
https://s1.c-conf.com/diamondpass/10036826-yu785e.html

Upon registration you will be provided with the dial in number, passcode, and your unique access
PIN. To join the conference simply dial the number and enter the passcode followed by your PIN,
and you will join the conference instantly.

A replay facility will be available after the conference call.


#Ends
Authorised by:
Ashleigh Harding
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