Fletcher Building Limited · NZX:FBU

Fletcher Building — FY2025 Earnings Presentation

62 slides from Fletcher Building's earnings presentation, Aug 20, 2025

  1. Slide 1: Full Year Results to 30 June 2025

    Full Year Results to 30 June 2025 20 AUGUST 2025 Golden Bay – Portland Manufacturing Plant

  2. Slide 2: Important Information

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

  3. Slide 3: Agenda

    Agenda FY25 Results 1. FY25 at a glance Andrew Reding, Managing Director & CEO 2. Operating performance Andrew Reding, Managing Director & CEO 3. Financial results Will Wright, CFO 4. Our stakeholders Andrew Reding, Managing Director & CEO 5. Outlook Andrew Reding, Managing Director & CEO 6. Conclus

  4. Slide 4: FY25 at a glance

    FY25 at a glance Andrew Reding, Managing Director & CEO

  5. Slide 5: FY25 Financial summary

    FY25 Financial summary Tough macro conditions across all sectors; we are positioning the business for the realities of the current market and to maximise leverage to any cyclical upturn Revenue1 EBIT1,2 EBIT Margin1,2 Net loss $7.0b $384m 5.5% $419m 9% lower than FY24 $125m lower than FY24 vs 6.6% i

  6. Slide 6: Our medium-term strategy

    Our medium-term strategy At our Investor Day in June we presented a clear plan for improvement Medium term focus on manufacturing and distribution of building products and materials Focus on high Empower our Resilient capital 1 Urgent action 2 3 4 performance leaders structure • Clear plan with imme

  7. Slide 7: Turnaround plan

    Turnaround plan Urgent priorities have been actioned decisively and there is a clear path of continuous improvement ahead Implemented Short term Medium term  Australia, Steel & Corporate  Construction divestment  Fully implement new operational restructure processes underway model  Clever Core s

  8. Slide 8: FY25 operational highlights

    FY25 operational highlights  Firth increased ready mix market share to ~40% nationally and above 50% in Auckland, ahead of the new 882 Great South Road batching plant commissioning in early FY26  Golden Bay market share improved to over 60% nationally and commissioned a front end firing system tha

  9. Slide 9: Encouraging progress on legacy risks

    Encouraging progress on legacy risks Over the course of FY25 there has been a sustained effort to close out historic legacy issues • Construction works effectively complete, with acceptance NZICC testing and compliance processes underway [Photo] • Client handover expected in calendar year 2025 • As

  10. Slide 10: Operating performance

    Operating performance Andrew Reding, Managing Director & CEO New Zealand International Convention Centre

  11. Slide 11: Divisional performance

    Divisional performance Lower revenue and profitability across the portfolio, with improved EBIT performance from Construction Residential & Building Products Concrete Distribution Australia Development Construction Gross revenue1 $1,289m $1,048m $1,528m $1,794m $557m $1,511m  4% from $1,345m  3% f

  12. Slide 12: Building Products

    Building Products Gross Revenue and EBIT1 down 4% and 21% respectively compared to FY24 FY25 Highlights PRODUCT VOLUMES Rolling 12m average quarterly volumes, Q4 FY19 = 100 • Performance impacted by cost 140 Winstone Wallboards Laminex NZ inflation and soft market conditions 130 Comfortech Reinforci

  13. Slide 13: Concrete

    Concrete Relatively strong performance by Golden Bay and Firth in a lower volume environment FY25 Highlights PRODUCT VOLUMES Rolling 12m average quarterly volumes, Q4 FY19 = 100 • A resilient performance, with EBIT1 140 Winstone Aggregates Golden Bay Firth (Ready Mix) Firth (Masonry) Humes of $96m,

  14. Slide 14: Distribution

    Distribution Disappointing EBIT1 result, down 61% on FY24, but turnaround plan is underway FY25 Highlights PRODUCT VOLUMES Rolling 12m average quarterly volumes, Q4 FY19 = 100 • PlaceMakers and Mico maintained 140 PlaceMakers customer engagement and network 130 scale 120 • However, a general market

  15. Slide 15: Australia

    Australia Gross Revenue and EBIT1 down 9% and 32% respectively compared to FY24 FY25 Highlights PRODUCT VOLUMES Rolling 12m average quarterly volumes, Q4 FY19 = 100 • Mixed performance in FY25 140 Laminex AU Fletcher Insulation Iplex AU Stramit • Some business units, such as 130 Laminex AU, Fletcher

  16. Slide 16: Residential and Development

    Residential and Development Volumes lower than FY24, but within historical ranges. Margins preserved through cost control amid market pricing pressures FY25 Highlights VOLUMES – HOUSE SETTLEMENTS 12mth volumes • Despite demand headwinds and 1000 Clever Core (loss of $9m), Residential 886 900 and Dev

  17. Slide 17: Construction

    Construction Improved profitability as business exited from cyclone impacts and legacy projects FY25 Highlights PRODUCT VOLUMES 12mth rolling volumes (rebased to 100) • Improved FY25 result, with EBIT1 up 86% on FY24 180 • Brian Perry Civil poured over 160 Higgins (12 mth rolling asphalt volume) 300

  18. Slide 18: Divisional changes - recap

    Divisional changes - recap We have simplified our portfolio to five Divisions, but FY25 reporting is based on our prior structure FY25 reporting structure FY26 onwards reporting structure Wood & Panels Water Insulation Building Products Light Building Products Australia Construction Materials Steel

  19. Slide 19: Financial results

    Financial results Will Wright, CFO Rā Hihi flyover – Eastern Busway Project

  20. Slide 20: FY25 reporting updates

    FY25 reporting updates We continue to enhance our reporting to provide greater transparency of performance to shareholders • Segment reporting, with additional detail provided across key financial statements: – Financial performance - breakdown from revenue to reported EBIT, including gross margin S

  21. Slide 21: Income Statement

    Income Statement Volume declines & lower house sales, partly offset by cost-out & significantly improved Construction performance INCOME STATEMENT JUN 2025 JUN 2024 • Group Revenue down ~9% and Residential and Development NZ$m 12 MONTHS 12 MONTHS revenue down ~30% Revenue 6,994 7,683 Cost of goods s

  22. Slide 22: FY24 to FY25 EBIT bridge

    FY24 to FY25 EBIT bridge Cost initiatives have helped to offset some of the impact lower volumes and cost inflation EBIT bridge FY24 to FY25: Key drivers of YoY change $m Increase Decrease Total 509 30 16 384 (132) 200 (16) (33) (5) (50) (135) FY24A Market Volume Price & Mix Resi - Lower Unit Cost i

  23. Slide 23: Balance Sheet

    Balance Sheet Balance Sheet improved with capital raise, with focus now on achieving $400m - $900m net debt target BALANCE SHEET JUN 2025 JUN 2024 NZ$m 12 MONTHS 12 MONTHS • Normalising the working capital cycle has resulted in Inventory 1,905 1,870 slightly higher working capital days in Materials

  24. Slide 24: Cash flows

    Cash flows Operating cash flows suppressed by lower earnings due to the challenging market conditions CASH FLOWS JUN 2025 JUN 2024 • Net cash from operating activities impacted by lower EBIT1 NZ$M 12 MONTHS 12 MONTHS compared to FY24 ($125m) and: Cash flow from operating activities Receipts from cus

  25. Slide 25: Central costs

    Central costs Reduction in Group central costs following stopping of ERP rollout, the benefit of late FY25 restructure still to be fully reflected and further cost out opportunities identified for execution in FY26 CENTRAL COST SUMMARY JUN 2025 JUN 2024 • Significant impact on Group central costs as

  26. Slide 26: Working capital performance

    Working capital performance Close management of working capital will be a key part of the overall financial strategy CUMULATIVE MONTHLY ∆TRADING CASH1 (FY19 – FY24); $m • Over the past two years, trading cash flows and working capital have been extremely volatile, for 100 Cumulative average monthly

  27. Slide 27: Capital allocation

    Capital allocation We have a number of committed capital projects underway that will continue into FY26 FY25 CAPEX, INVESTMENTS & ACQUISITIONS BREAKDOWN • Investments & acquisitions include contributions into $m Construction JVs and final purchase price adjustments on 350 Waipapa Pine Investments &

  28. Slide 28: Capital projects

    Capital projects Significant investments being made in long life manufacturing assets Laminex Taupo OSB plant Golden Bay Cement front end firing unit Firth 882 Great South Road batching plant PlaceMakers Auckland Frame & Truss 28 | FY25 Results Presentation | 20 August 2025 | Fletcher Building Limit

  29. Slide 29: Management of lease portfolio

    Management of lease portfolio Excluding the impact of the Tradelink divestment, lease liabilities increased between FY24 & FY25 • Continuing focus from management on lease portfolio and reduction in overall Lease Liabilities As at As at liability NZ$m 30 JUN 2025 30 JUN 2024 • Lease liabilities tota

  30. Slide 30: Funding mix

    Funding mix The Group has strong liquidity of $1.1bn TOTAL FACILITIES MATURITY PROFILE As at 30 JUNE 2025, $m 988 • Undrawn credit lines of $916m and cash on hand of $139m as at 30 June 25; total liquidity of $1.1b • ~$679m net cash proceeds from equity raise used to repay bank debt of $511m and USP

  31. Slide 31: Net Debt

    Net Debt Capital raise drove the majority debt reduction, with a further ~$88m resulting from other levers NET DEBT (FY24 – FY25) $m Increase Decrease Total 1,766 154 128 (679) 999 313 261 (59) (230) (655) FY24 Net Debt Capital Raise Sig Items & Operating Cash Net Capex, Proceeds from Leases Interes

  32. Slide 32: FY25 Significant Items

    FY25 Significant Items Total Significant Items of $702m in FY25, primarily a result of Iplex AU, Tradelink and strategic review actions FY25 Significant Items ($m) • At the HY25 results, $251m of Significant Items primarily relating to Iplex Australia pipes ($177m) and Tradelink disposal ($58m, non-

  33. Slide 33: Our stakeholders

    Our stakeholders Andrew Reding, Managing Director & CEO

  34. Slide 34: Our Safety

    Our Safety We believe all injuries are preventable AI imaging technology SafeGuard We express our deepest sympathies to the family of Max, our team member Award who passed away following a crane incident in Vanuatu at the start of FY26 Finalists in 5 categories This event and the 15 high potential e

  35. Slide 35: Our People

    Our People Our people are the key to our success and we are immensely proud of the work they do Te Heta Daniels, Quarrying NZ awards for graduate of Fletcher excellence in plant Building’s operation and problem Whakatupu programme. The first 45 grants solving (Anya Harding), Tomorrow’s Leader person

  36. Slide 36: Our Environment

    Our Environment Supporting our local environment and improving the sustainability of our operations Carbon emissions 24% 79% 87% Leadership Supplier Engagement of Revenue from lower Sustainably Certified Products of Waste diverted from landfill A- A- vs FY18 baseline As part of their Positive Golden

  37. Slide 37: Our Community

    Our Community Supporting the communities that we operate in Fletcher Living designed, built and handed over Taurangi Reserve to Auckland Council as part of the Three Kings development. The new recreation area includes two new sportsfields, a nature- inspired playground, and public walkways. The name

  38. Slide 38: Our Customers

    Our Customers We’re proud of the products and people helping our customers build their future New Zealand International Convention Centre (NZICC) The NZICC project is nearing completion and currently undergoing acceptance testing. Once finished the centre will be capable of hosting events for up to

  39. Slide 39: Our Customers

    Our Customers We’re proud of the products and people helping our customers build their future Te Waka Aorangi Child Christchurch Stadium Wellness Centre This $683m project has This centre for children used the full spectrum who have behavioural, of GIB® products neurodevelopmental and including GIB

  40. Slide 40: Outlook

    Outlook Andrew Reding, Managing Director & CEO Rā Hihi flyover – Eastern Busway Project

  41. Slide 41: Where in the New Zealand cycle are we?

    Where in the New Zealand cycle are we? Sales across the wider building merchant market are tracking below previous years (in nominal terms) NZ BUILDING MERCHANT SALES NZ BUILDING MERCHANT CURRENT MONTH SALES $m, monthly rolling 12 month sales (Jun-20 to Jun-25) $m, Monthly Jan-22 to Jun-25 6,500 650

  42. Slide 42: Where in the Australian cycle are we?

    Where in the Australian cycle are we? Completions / commencement divergence starting to reverse for total dwellings. New houses slower to turn AUS TOTAL DWELLINGS AUS NEW HOUSE Seasonally adjusted, (Approvals, Commencements & Completions) Seasonally adjusted, (Approvals, Commencements & Completions)

  43. Slide 43: FY26F Outlook

    FY26F Outlook Operating volumes continue to be subdued, impacting operating leverage and profitability • New Zealand market volumes expected to remain low and experience subdued demand throughout FY26 • Australia market indicators are mixed and it is too early to say whether some indicators will lea

  44. Slide 44: Conclusion

    Conclusion Andrew Reding, Managing Director & CEO New Zealand International Convention Centre

  45. Slide 45: Conclusion

    Conclusion ❶ Immediate actions being taken on turnaround plan and cost out program ❷ Clear focus on operating performance and servicing our customers ❸ On track with reducing net debt, with clear priorities for FY26 ❹ NZ and AUS markets likely to remain weak in FY26 ❺ Well positioned for improved op

  46. Slide 46: Appendix

    Appendix

  47. Slide 47: Fletcher Building at a glance

    Fletcher Building at a glance A leading building materials manufacturer and distributor across New Zealand and Australia with complementary development & construction businesses • NZX and ASX listed (FBU), with market cap of ~$3.1b • FY25 Revenue of $7b and EBIT1 of $384m • Operates through a portfo

  48. Slide 48: Building Products

    Building Products 12 months ended Change from 12 months ended 30 June 2025 (FY25) 30 June 2024 (FY24) • Building Products: Performance was impacted by cost inflation and soft civil construction conditions. The division exited FY25 with operational momentum Gross revenue $1,289m  4% from $1,345m and

  49. Slide 49: Concrete

    Concrete 12 months ended Change from 12 months ended 30 June 2025 (FY25) 30 June 2024 (FY24) • Concrete: a resilient performance, although impacted by $6m from the MVAC breakdown in 1H. Volumes were down ~4%, but earnings were Gross revenue $1,048m  3% from $1,082m supported by strong demand from t

  50. Slide 50: Distribution

    Distribution 12 months ended Change from 12 months ended 30 June 2025 (FY25) 30 June 2024 (FY24) • The Distribution division faced a challenging FY25, delivering a result significantly below expectations. While PlaceMakers and Mico maintained Gross revenue $1,528m  5% from $1,615m customer engageme

  51. Slide 51: Australia

    Australia 12 months ended Change from 12 months ended 30 June 2025 (FY25) 30 June 2024 (FY24) • Australia: While some businesses such as Laminex AU, Fletcher Insulation and Iplex AU demonstrated resilience and product-led growth, the overall division Gross revenue $1,794m  9% from $1,979m was chall

  52. Slide 52: Residential and Development

    Residential and Development 12 months ended Change from 12 months ended 30 June 2025 (FY25) 30 June 2024 (FY24) • FY25 saw the Residential and Development division navigate persistent demand headwinds, cautious buyer behaviour and pricing pressures, the division delivered Gross revenue $557m  30% f

  53. Slide 53: Construction

    Construction 12 months ended Change from 12 months ended 30 June 2025 (FY25) 30 June 2024 (FY24) • The Construction division delivered an improved FY25 result, with EBIT up 57% YoY. This performance reflects successful project delivery, improved cost Gross revenue $1,511m  6% from $1,614m disciplin

  54. Slide 54: Divisional Restatements

    Divisional Restatements NZ$m Equity Reval2 and EBITDA Gross External Gross Other income Operating Accounted other gains EBIT before before Sig Revenue Revenue Margin Overheads* / (expenses)1 Profit Earnings / (losses)3 Sig Items Sig Items EBIT DD&A EBITDA Items Old Group structure (FY25) Building Pr

  55. Slide 55: Divisional EBIT breakdowns

    Divisional EBIT breakdowns Divisional EBIT (before Sig Items) (NZ$m) 12 months to JUN 2025 12 months to JUN 2024 Wood & Panels 161 199 Water 27 35 Insulation 24 29 Total Light Building Products EBIT (excl divisional costs) 211 263 Upstream construction materials1 69 96 Downstream construction materi

  56. Slide 56: Credit metrics

    Credit metrics JUN 2025 JUN 2024 Credit metrics & covenants 12 MONTHS 12 MONTHS Pre-IFRS 16 Net Debt (target $400m - $900m) $999m $1,766m Senior Leverage Ratio (covenant 3.5x, moving to 3.25x in FY26) 1.6x 2.4x Senior Interest Cover Ratio (covenant 2.25x, moving to 3.0x in 2H26) 3.9x 3.5x Total Inte

  57. Slide 57: Customer NPS by Business Unit

    Customer NPS by Business Unit Strongly positive NPS scores across the majority of the portfolio Customer NPS1 As at 30 June 2025 83 78 77 77 76 74 67 62 57 54 51 50 50 46 45 45 44 39 36 35 18 (2) 57 | FY25 Results Presentation | 20 August 2025 | Fletcher Building Limited 1. Note some business units

  58. Slide 58: Employee eNPS by Business Unit

    Employee eNPS by Business Unit Strongly positive eNPS scores across the majority of the portfolio Employee eNPS As at 30 June 2025 74 62 57 56 53 49 49 47 40 39 39 38 37 34 33 32 31 28 18 16 -6 58 | FY25 Results Presentation | 20 August 2025 | Fletcher Building Limited

  59. Slide 59: FY25 carbon statistics

    FY25 carbon statistics 24% reduction in scope 1 & 2 emissions from our FY18 base year The decrease in scope 1 & 2 emissions was driven by reduced emissions from cement manufacturing and decreasing emission factors from the Australian electricity grid (we note that as market conditions improve, absol

  60. Slide 60: ROIC framework

    ROIC framework A disciplined capital allocation framework driving investment decisions, performance accountability and sustainable value creation across business units Invested ROIC framework NOPAT (trailing 12-months) ÷ capital (Average month end = ROIC • ROIC serves as the primary investment decis

  61. Slide 61: Iplex Australia - Industry Response & legal proceedings

    Iplex Australia - Industry Response & legal proceedings House remediations and pipe replacements building momentum, no change to provisions Recap Industry Response progress • On 13 November 2024, Iplex Australia agreed to the Industry Response (“IR”) with the WA Government and builders Indicative Co

  62. Slide 62: Laminex Australia – Silicosis

    Laminex Australia – Silicosis Contributed $0.4m to settlements in FY25 ($1.3m in FY24) • Laminex Australia (together with other engineered stone manufacturers, distributors, and fabricators in Australia) is the subject of a number of silica related personal injury claims in Australia. • Laminex Aust

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