Slide 1: Annual Results 2006
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Slide 2: Disclaimer
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Slide 3: Results highlights
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Slide 4: Summary of Results
Summary of Results June June % 2006 2005 YOY $m 12 Mths 12 Mths Change Revenue 5520 4636 +19 EBITDA 819 742 +10 EBIT 675 612 +101 Net Earnings 379 347 +9 EPS (cents) 81.3 77.6 +5 Dividend cps 40.0 32.0 +25 1 If EBIT was adjusted for full year of Amatek in 2005, the YOY change becomes +3% 7 Wy 7 Sey
Slide 5: Geographic Mix
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Slide 6: Market Diversity
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Slide 7: Strong Earnings in All Divisions
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Slide 8: Building Products
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Slide 9: Building Products Results
ilding Products Results June June 1 % 2006 2005 YOY $m 12 Mths 12 Mths Change Revenue 1711 1324 +29 EBIT 235 227 +4 Margin 13.7% 17.1% -20 Funds 972 883 +10 Return on Funds 24.2% 27.7% 2 -13 1 Includes 4 months of Amatek 2 Proforma returns based on 12 months of Amatek Ve, 7 Uy yy yy iy, yy BE Ly yy)
Slide 10: Building Products: Plasterboard
10 ucts Building Pro Plasterboard QO Volumes down 5% on pcp due to New Zealan residential slowdown but EBIT maintained at 97% of pcp. QO Market share maintained and performance boards held at 46% of volume. QO New $10 million distribution centre in Aucklan with planning underway for a similar centre
Slide 11: Building Products: Insulation
Building Products Insulation QO} Demand has held up well in Australia and New Zealand Q Initially some market share loss in Australia as a result of merger, but now being regained QO Synergies being realised ahead of original plan QO New Zealand earnings ahead of pcp. By a Ep yy Toy Lees yy Wie Hee
Slide 12: Building Products: Rollforming
12 Building Products Rollforming QO Avery pleasing result with Stramit, Dimond and Pacific Coil Coaters all well up on pcp. Q Stramit IT implementation completed successfully. j Ly ay Yi Le Ee a TE ee he Vs ae, Gh La LAN EAL Ms gy Ly Hi LL i Wii, WS Oe Lo ea ee i LE LN, u LLL LL Mee g a LLL . yy Ly
Slide 13: Building Products: Metal Roof Tiles
13 Building Products Metal Roof Tiles QO) Good demand in export markets with New Zealand earnings up on pcp. QO US earnings down NZ$5m on pcp as last year had exceptional ‘hailstorms related’ upside. QO) Good strong export demand QO Malaysian plant operating well LE ED ey ey Ws EMS UTE AG MEY ag, _
Slide 14: Building Products: Long Steel Products
14 Building Products Long Steel Products QO Good volumes in all markets. Q Still subject to price volatility. OQ Production impacted by installation of Tempcore and electricity outage. QO Results down $12m on pcp but earnings still above WACC. MMA y He LEON 7 We, yj LLL yy Uy MMA EEL Wa Te ee tie es
Slide 15: Building Products: Other Businesses
15 Building Products Other Businesses QO Steel distribution, Fletcher Aluminium, Tasman Sinkware and Access Floors all performed well in tighter markets and collectively were 90% of Pcp. OQ Standout performance from Sinkware which was ahead of pcp in a very tough Australian residential market. ey Ge
Slide 16: Distribution
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Slide 17: Distribution Results
Distribution Results June 2006 $m 12 Mths Gross Revenue 956 EBIT 75 Margin 7.8% Funds 132 Return on Funds 56.8% WA SEde DEAE ee BS aes AE EEE EE vy a ay yy Uy Wg Wy, ey iy a7 Ze SEE TE BAT: June 2005 12 Mths 920 81 8.8% 116 69.8% TEE EE es WEI a ae Ly a We Be 7 yi Ve LL Wie Le 7 i Wy yy Ve We 20 VAL
Slide 18: Distribution
18 Distribution OQ Very pleasing result with earnings only 7% behind exceptional pcp in a very competitive New Zealand residential market. QO Market share gain offset margin and cost pressures. QO) New stores opened “/ In progress = Seaview (refit) «= Papakura (Jul) = Kerikeri = Wanaka (Aug) " Inver
Slide 19: Infrastructure
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Slide 20: Infrastructure Results
20 Infrastructure Results June June 1 % 2006 2005 YOY $m 12 Mths 12 Mths Change Revenue 1823 1441 +27 EBIT 255 196 +30 Margin 14.0% 13.6% +3 Funds 766 660 +16 Return on Funds 33.3% 34.2% 2 -3 1 Includes 4 months of Amatek 2 Proforma returns based on 12 months of Amatek 7 Wy 7 Sey y) wey y y yy yy TE
Slide 21: Infrastructure: Golden Bay Cement
21 Infrastructure Golden Bay Cement QO Strong domestic demand with EBIT up 11% on cp despite disruption from expansion project. QO Cement kiln upgrade programme to be completed in September 2006. QO On completion, total cost circa $100m with EBITDA benefits of $25m+ pa Q Final stage Gas Train Modifi
Slide 22: Infrastructure: Firth
22 Infrastructure Firth QO) Ready mix volumes similar to last year despite residential slowdown QO) Paving and masonry volumes were down. QO Earnings 94% of pcp due to reduced demand in masonry. MOA EEE EEE, Ley Bue He Wy Wy Wy yy By Wy ay WY Yi Ly Le ee ie ay Me, Ly a EM UR EE La ee He Ly i 7 Lo MM
Slide 23: Infrastructure: Winstone Aggregates
23 Infrastructure Winstone Aggregates QO Record volumes on back of strong roading market. QO) Improved results from better quarry management and price increase. QO) Upgrades completed at Hunua, Whitehall and Helensville. PE ay OSA EAE EEL EE MN LAE SIDA LAE NE 7 VU Wy Le Daa a TL yy Zi, Gh WY Ve Uy
Slide 24: Infrastructure: Humes and Stresscrete
24 Infrastructure Humes OQ) Strong margin management led to substantial lift over pcp. QO) Good prospects remain. Stresscrete OQ Disappointing performance during period Q) Solid backlog of work. EE By WE Ty GI, yy, ge My shia Vy SENSU ad We Oi Ms ide a yy ies Vy 7 ye i i a i i i Ly MEG, Gay yy Leena
Slide 25: Infrastructure: Rocla Quarries & Pipeline Products
25 Infrastructure Rocla Quarries & Pipeline Products QO Overall, pleasing results ahead of pcp in a softer Australian market. OQ) Quarry expansions in NSW. OQ Growth in non-pipeline products and A$116 million railway sleeper contract obtained Ee GAEL ELL LE EEL Ee Ly jy i »~»~>Srt—“‘—————————CCPP'’|
Slide 26: Infrastructure: International
26 frastructure International Fiji QO Small operation well up on pcp. Peru QO) A good performance on the back of a strong mining sector and well up on pcp Exit is the preferred course for both of these operations ey is a 7 7/ Li Ye a a iy y Ly iy We, Vy Hes, iy if Ge EM aa d iy Cie, Lo ae LL LLL LLL
Slide 27: Infrastructure: Construction
27 Infrastructure onstruction QO Excellent results in a strong market. ( Results benefited from the close out of some major projects. OQ Major projects underway at 30 June * Auckland University Business School «= Central Motorway Junction North Shore Busway Wellington Hospital Stamford Plaza Upgrade
Slide 28: Infrastructure: Construction (cont.)
Infrastructure Construction (cont.) QO Backlog $800m+ at June 2006 OQ UK land sales contributed $10m EBIT during the eriod Wy ye LU DEA UE ee Un A Een aA Ly oh ye, Gy a Le Wy ce ey Uy yy ye Ly Gi, Ll i es yy ay iy, 7, 4 a Ve yy y yyy ay We iy LLL EAE SAD iy wy Ly Lee tj a oe Hoey yy, ‘ae at, ea i Le
Slide 29: Infrastructure: Residential
29 Infrastructure Residential QO) House sales similar to last year but earnings up 14% on pcp. QO Demand still holding QO Commenced building on Lunn Avenue, Auckland and Queenstown. QO Good land positions key to future earnings. Hey Vis 7 7/ Uy Ye TUT Ae EU EO Pe eee y Le yy Vi Hae, x ay Qe EM aa We
Slide 30: Laminates & Panels
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Slide 31: Laminates & Panels Results
Laminates & Panels Results June June 2006 2005 $m 12 Mths 12 Mths Revenue 1027 948 EBIT 116 107 Margin 11.3% 11.3% Funds 920 789 Return on Funds 12.6% 13.6% vy ve ay 7 yy i Ay yy ey yy Va Uy iy A LEE Wy LEA ee ne EEE Wee i Ve LLL LLL LLL iy Uy 7. fe We Ui Ve 20 IE EAE EEE EEA EE EEE LATE EEE EE EEE
Slide 32: Laminates
32 Laminates OQ) Strong performance despite generally difficult market conditions. QO Overall improved earnings despite many input cost increases in both Australia and New Zealand Q Acquired O’Briens in May 2006 OQ) New products introduced throughout the year. QO) New wood fibre agreement concluded
Slide 33: Laminates & Panels
33 minates & Panels Q Sawmilling and resin manufacturing joint ventures performed well and in line with pcp Q Growth projects underway include Particle board capacity expansion Componentry Resin manufacture Wespine sawmill capacity expansion i ie oe 7/ Uy Ye LMM a / Ly iy UU G iy Me Ae ee fe Ws Giga
Slide 34: Earnings After Tax
34 Earnings After Tax June December June! 2006 2005 2005 $m 12 Mths 6 Mths 12 Mths EBIT 675 335 612 Interest -88 -45 -77 Tax -189 -90 166 Minority Interests -19 -10 -22 Profit After Tax 379 190 347 1. Restated for IFRS Ly WY yy iy YW EY ee De ee ee TEE EEE Ay i j We) CF Uy Se Wy, We x MM Lf ig Liege
Slide 35: Simplified Balance Sheet
Simplified Balance Sheet Assets Current Assets Fixed Assets Intangibles & Goodwill Provision for Deferred Taxation Investments Total Fletcher Building Assets Liabilities Current Liabilities Net Debt Total Fletcher Building Liabilities Equity Equity & Minority Interests Total Fletcher Building Liabil
Slide 36: Key Ratios: Total Shareholder Return
36 Key Ratios Total Shareholder Return (TSR)2 61 60 5 50 + 43 40 40 5 33 a : . a i i ae June 01? June Q2 June O03 June O04 June OS June 06 NO WwW Oo Oo ! ! NO Db 1. June 01 is the return for the 3 months from separation date 2. TSR calculated ((Gross Dividend Paid + Movement in Share Price)/Opening
Slide 37: Key Ratios: Debt/Debt Plus Equity
37 Key Ratios Debt/Debt Plus Equity 60 5 49.2 49.9 43.1 44.4 40.2 AN 37.1 June 01 June O02 JuneO3 JuneO04 June 051 June 06 50 + 40 - 30 5 20 5 0 1. Restated for IFRS war LO ee 8 9 EEE wey eT Ly ee af La 7 i LU Ly iy yy, ae iy Vig J yi Vo Ye tale Ge Wy Ye of yy) LN LE he ey Me te LL Aprcale y i U7 ae
Slide 38: Key Ratios: Return on Average Equity
38 Key Ratios Return on Average Equity’ % 40 30 | 29.5 23.0 24.3 20 16.9 0 5 t r 1 t r i juneOQ2 JuneO3 June 04 June 052 June 06 24.6 1 -10 5 -20 5 -30 4 -40 + sq) 743.8 1. Net earnings after capital notes interest/shareholders funds 2. Restated for IFRS A Le 7 a 4 _ Co i, iy ig aa a UIE LE AE EE yy
Slide 39: Key Ratios: Return on Average Funds
39 Key Ratios Return on Average Funds’ 357% L 30 26.1 25 : 24.7 1 23.1 246 20 15 10 07 1 T 1 T 1 1 JuneO0d2 June O03 June O04 June O52 June 06 1 1 uw L -10 ~ -8.6 1. EBIT/(Average net debt-equity+capital notes) - deferred tax asset 2. Restated for IFRS MNS i Hie My Ly EEE EEE OEE EE. Yup LE INS 7 Wy
Slide 40: Key Ratios: Interest Cover
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Slide 41: Net Debt
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Slide 42: Operational & Strategic Update
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Slide 43: Strategic Update
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Slide 44: Earnings Reliability
44 tte Earnings Reliabili QO Company outlook should be cognisant of both the product and geographic diversity. For New Zealand —- Infometrics estimate of tota volume of work commenced Q) For Australia - BIS estimate of total volume of work commenced Hey Vis 7 7/ Uy Ye TUT Ae EU EO Pe eee y Ly yy Vy
Slide 45: New Zealand
New Zealand Value of Forecast N [=] Oo Oo io) J +6% +5% +8% = ies} oO oO o 1 0% 0% w aD ° 3 3 L + ~~ & 46% +4% +5% A ° 3 toy L +6% = N oO oO Oo 1 $ ° ° ° ° 1 : +1% ive} foo) oO Oo L TET Te = De Nae Dn fo} Oo fo} L " fy ° o 1 N i=) Oo io) L o1 02 03 04 05 06 07 08 09 10 Residential HA&A O Non-residen
Slide 46: Australia
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Slide 47: Internal Growth
47 Internal Growth Significant capex to continue in 2007 — up to $150m more than depreciation 350 4 300 250 | 7 200 150 100 50 My i \ ~ x SSK fe 2005 2006 2007F a Stay in Business @ Growth & Productivity LN We. Le Ye yi yy MLM OO Ae ae y yy yy a) yy LIME OL MAE us i Wy iy WL GI MEG EMO AER. NIMES MM
Slide 48: Internal Growth Opportunities
48 i Internal Growth portunities QO Whilst there has been no major acquisitions this year, we have continued to invest significantly in existing operations. Q Significant capex spend continues into 2006/07. OQ Projects include ompletion of cement upgrade Particle board upgrades at Kumeu & Dardanup R
Slide 49: External Growth Opportunities
49 External Growth Opportunities QO We are still keen to grow through acquisition of companies within the building materials sector, with the objective of strengthening our existing operations, expanding our product portfolio and improving our geographic diversity. QO We are continually evaluating o
Slide 50: Outlook
50 y utlook () New Zealand residential and non residential markets are forecast to soften over the next two years, offset in part by additions and alterations and infrastructure activity. OQ The surprise for New Zealand will be the strength of the A&A market as a result of increased spend on ‘weathe
Slide 51: Outlook (cont.)
Si QO Both Queensland and Western Australia are forecasting strong overall activity going forward Q Infrastructure spend will also be strong for at least the next three years, particularly in New Zealand where we are strongest. OQ) Expect on balance to have another satisfactory full year result in 2
Slide 52: Slide 52