#1Fletcher Building Investor Presentation October 2013#2Disclaimer This presentation contains not only a review of operations, but also some forward looking statements about Fletcher Building and the environment in which the company operates. Because these statements are forward looking, Fletcher Building's actual results could differ materially. Media releases, management commentary and analysts presentations, including those relating to the 2013 Annual results announcement, are all available on the company's website and contain additional information about matters which could cause Fletcher Building's performance to differ from any forward looking statements in this presentation. Please read this presentation in the wider context of material previously published by Fletcher Building. 2 Fletcher Building Investor Presentation | October 2013#3Presentation outline Fletcher Building at a glance Results Overview Business Transformation Programme Outlook Supplementary Information Divisional Performances 3 Fletcher Building Investor Presentation | October 2013#4Fletcher Building at a glance Revenue - 12 months to 30 June 2013: Market Capitalisation': Employees: Shareholders: Revenues: (as at 30 June 2013) (year to 30 June 2013) NZ$8.52 billion NZ$6.60 billion 18,830 EBIT (year to 30 June 2013) 16% 7% 28% 4% 45% New Zealand North America Asia Australia Europe 1. Market Capitalisation as at 22 October 2013 4 Fletcher Building Investor Presentation | October 2013 43% 12% 45% 14% 50% 36% New Zealand Australia I New Zealand Australia Rest of World Rest of World#5Business structure grouped around 5 divisions Infrastructure Products Building Products Laminates & Panels Distribution Construction ■ Cement ◉ Readymix ☐ Aggregates ■ Concrete ◉ " ☐ Products Concrete pipes Quarries Long steel Reinforcing bar, mesh and wire Iplex pipelines Copper tube Building Materials Manufacture ■ Plasterboard Insulation ■ Roof tiles Coated steel ■ Aluminium windows & doors ■Sinkware Laminex ■ MDF ■ Particleboard ▪ LPM ■ HPL New Zealand ■57 PlaceMakers branches ■ 12 PlaceMakers frame and truss sites ■63 Mico branches Australia Formica " ■ HPL 223 Tradelink branches ■17 Hudson Building Supplies branches ■ 12 Northern's Plumbing Supplies branches General construction ■ Infrastructure Π projects ■Residential house development 5 Fletcher Building Investor Presentation | October 2013#65 year performance overview Total Shareholder Return (TSR) Percentage 24 14 14 51 31 27 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 -27 Return on Average Funds Percentage¹ 13 13 12 11 10 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 1. Earnings before interest, tax and significant items / average funds 6 Fletcher Building Investor Presentation | October 2013 Debt/Debt Plus Equity Percentage 37 =4 34 33 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13#7Strategic overview Fletcher Building: Who Are We An integrated manufacturer and distributor of infrastructure and building products, as well as a construction company Fletcher Building: How We Create Value Building, acquiring and managing strong asset positions in core markets Building positions in the value chain ranging from the customer upstream to raw material extraction Empowering our business units to build deep customer, product and market knowledge to grow share Leveraging our size and scale to drive efficiencies and invest in world class capabilities 7 Fletcher Building Investor Presentation | © October 2013#8Results Overview CSP Pacific streetlight columns, Auckland OCLYTE COLUMNS CSP GANDAR#9Financial results overview June 2012 June 2013 NZ$m Sales EBITDA¹ 12 months 12 months % A 8,839 8,517 -4 786 789 EBIT¹ 556 569 +2 Net earnings¹ 317 326 +3 Significant items after tax (132) Net earnings 185 326 +76 EPS - cps¹ Dividend - cps 46.5 47.6 +2 34.0 34.0 1. EBITDA, EBIT, Net Earnings and EPS all before significant items 9 Fletcher Building Investor Presentation | © October 2013#10185,000 Continued upward trend in New Zealand residential consents throughout the past year Total residential consents 12 month rolling - New Zealand and Australia Australia 175,000 165,000 155,000 145,000 135,000 125,000 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 10 Fletcher Building Investor Presentation | © October 2013 Australia Oct-12 Nov-12 New Zealand Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 New Zealand 20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000#11New Zealand operating earnings up strongly with volume growth, while most other markets were down EBIT1 NZ$million 207 286 259 203 90 80 New Zealand Australia Rest of the World Year to June 2012 Year to June 2013 1. EBIT before significant items 11 Fletcher Building Investor Presentation | October 2013#12Divisional operating earnings overview EBIT¹ NZ$million 222 209 139 122 120 109 87 65 50 50 Infrastructure Building Products Products Laminates & Panels Distribution Construction Year to June 2012 Year to June 2013 1. EBIT before significant items 12 Fletcher Building Investor Presentation | © October 2013#13Earnings commentary New Zealand operating earnings' up 38%, driven by increased house- building activity and repairs and rebuilding work in Canterbury Deterioration in Australian volumes evident early in the year, and the market remained soft throughout FY13 Improvement in North America, but Europe worsened and Asia was mixed Revenues down due to sale of businesses: Cory's Electrical (December 2012) Mico Metals and Austral Wright (June 2012) Operating cashflow up 25% with increased contributions from Building Products, Distribution and Construction Divisions New organisation structure now based around 5 Divisions All restructuring charges taken 'above the line' offset by gains on sale of businesses and property disposals 1. Excluding significant items 13 Fletcher Building Investor Presentation | © October 2013#14Canterbury update Considerable progress on repairs 46,000 full scope repairs completed: half-way point now passed $1.5 billion of work completed Repairs to the final Earthquake Commission referred property are now expected to be completed in December 2014 NZ Govt and Christchurch City Council ('CCC') to share cost of Central Christchurch rebuild and horizontal infrastructure: Anchor projects in CBD costing $1.9Bn: NZ Govt $1.1Bn, CCC $0.778Bn Includes Convention Centre, Performing Arts Precinct, Stadium Horizontal Infrastructure to cost $2.9Bn: NZ Govt $1.8Bn, CCC $1.1Bn Total cost of Canterbury rebuild estimated at $40Bn:* Residential: $18Bn Commercial & Social: $15Bn Infrastructure: $5Bn * Source: NZ Govt/Treasury Budget Estimates 14 Fletcher Building Investor Presentation | O October 2013#15Cashflow from operations increased by 25% EBITDA Funding costs Cash tax paid Non cash unusual impact Provisions movement/other June 2012 June 2013 12 months 12 months %A 633 789 25 (152) (146) -4 (123) (60) -50 122 (23) (58) 248 Working capital movements: Debtors 15 34 Creditors (115) (6) Stock 71 12 Other 20 (6) (9) 34 Cashflow from operations 448 559 +25 15 Fletcher Building Investor Presentation | © October 2013#16Opening Net Debt Cash from operations (pre working capital) 2,059 (525) (34) Working capital 16 Fletcher Building Investor Presentation | © October 2013 Growth capex + acquisitions NZ$million Stay in business capex Reduction in net debt due to proceeds from divestments and operating cashflows 98 98 Divestments Dividends 148 (91) Minority distn Hedging/ FX on debt 208 12 Closing Net debt (99) 1,776#17Capital expenditure to increase modestly in FY14 - includes investment in FBUnite projects Growth Stay in business 307 353 June 2012 12 months June 2013 12 months % A Stay-in-business 207 148 -29 Growth 60 85 +42 246 230 220 205 Acquisitions 86 13 -86 Total 353 246 -30 148 Depreciation 230 220 -4 FY2011 FY2012 FY2013 Depreciation Capital Expenditure For FY14, capital expenditure is expected to be in the range of $250m-$300m Some project deferral from FY13 17 Fletcher Building Investor Presentation | © October 2013#18Debt maturity profile Funding and Maturity Profile NZ$m 222 22 383 144 77 214 200 424 318 221 168 186 168 145 18 Undrawn credit lines and cash on hand of $943 million. Average maturity of debt is 5 years. Approximately 74% of all borrowings have fixed interest rates. Average interest rate on debt is 6.7%. 2014 2015 2016 2017 2018 2019 2020 2022 2024 2027 Commited Undrawn Debt Facilities Debt - Drawn 18 Fletcher Building Investor Presentation | © October 2013#19Business Transformation Fletcher Reinforcing, Auckland F#20FBUnite: multi-year business transformation programme PEOPLE Developing a winning culture. Organisational development Learning Academy Leadership Performance management Talent management Global employee engagement Intranet HRIS INNOVATION & GROWTH Responsive to market changes. Future distribution opportunities Future growth opportunities Digital ICT roadmap Digital business strategy Customer/marketing/CRM PERFORMANCE EXCELLENCE Optimising operational performance. Network optimisation Freight/logistics Distribution footprint Operational excellence Manufacturing Supply chain Health & Safety EFFICIENCY Creating the lowest possible cost structure. Procurement Indirect Direct ICT Shared services centre Finance - Accounts Payable/ Accounts Receivable HR Payroll, learning and development Desktop support Purchasing Property Portfolio management Rationalisation Transactions 20 Fletcher Building Investor Presentation | © October 2013 FBUnite#21FBUnite transformation programme All workstreams established with senior leadership teams in place Specific Workstream updates: ■ Shared Services Centre established in Auckland Group Procurement teams in place and a number of categories already completed Centralised property management team Manufacturing excellence programme launched IT and digital strategy focussed on project prioritisation and implementation Total benefits arising from FBUnite expected to be in the range of $75m-$100m p.a. ◉ Benefits should become evident in FY15 Capital and operating expenditure will be incurred in FY14 which will offset early benefits 21 Fletcher Building Investor Presentation | O October 2013#22Management changes 3017 Nick Olson Chief Financial Officer Tim Hickey Chief Executive Distribution Australia Charles Bolt Company Secretary and General Counsel Carl Powell Chief Information Officer 22 Fletcher Building Annual Results Presentation October 2013#23Outlook Formica DecoMetal® laminate, Heathrow Airport#24Outlook FY2014 New Zealand ☐ Increase in construction activity expected across most sectors Strong increase in housing consents expected to underpin activity levels in the first half Canterbury rebuild will continue to boost activity Steady improvement in commercial building expected Civil infrastructure to benefit from major projects in Auckland, Canterbury and the health and education sectors Australia ☐ Conditions expected to remain flat Activity levels in New South Wales appear to be improving, but Victoria remains subdued Confident that change in government and policy reform will lead to a more positive business environment over time Declining investment in mining and resources sectors a potential drag on activity 24 Fletcher Building Investor Presentation | © October 2013#25Outlook FY2014 North America: Increases in new housing construction will benefit Formica Commercial market remains flat Europe: Remains difficult, particularly Spain Break even target Asia: Growth expected in South East Asia Northern Asia and China may be more subdued Financial Outlook: Operating earnings expected to be between $610 million to $650 million Further appreciation in the New Zealand/Australian dollar exchange rate could impact earnings Assumes no deterioration of flat Australian market 25 Fletcher Building Investor Presentation | © October 2013#26Supplementary Information Dimond cladding, Auckland#27Infrastructure Products Result NZ$M June 2012 12 months June 2013 12 months % A Sales EBITDA 2,299 2,095 -9 302 312 +3 EBIT 209 222 +6 Cement, 69 73 Concrete Aggs +6 Pipes +Products 61 67 +10 Iplex/ CCT 68 54 -21 Steel 11 28 +255 Funds Employed 1,974 1,841 -7 EBITDA/sales% 13.1 14.9 EBIT/sales % 9.1 10.6 ROFE % 10.6 12.1 27 Fletcher Building Investor Presentation | © October 2013 Cement, concrete & aggregates New Zealand volumes improved: - Cement volumes up 4% - Aggregates volumes up 6% - Readymix volumes up 19% Australian quarry volumes decreased by 15% in soft market. Concrete pipes and products Volumes down 9% in Australia and up 9% in New Zealand. Iplex - Australian volumes down 4%, but underpinned by CSG contracts - New Zealand volumes up Steel Long steel volumes up 6% on improved New Zealand demand. Distribution earnings up due to business improvement initiatives.#28Infrastructure Products Increased NZ activity drove volume growth Gross Sales NZ$m June 2012 12 months June 2013 12 months % A Volume A Price A EBITDA A Cement, concrete & aggregates¹ 619 669 +8 Cement Readymix Aggregates: - New Zealand - Australia Concrete pipes & products² New Zealand Australia Long Steel Steel Distribution³ Plastic Pipes New Zealand Australia 495 500 +1 269 262 -3 239 220 -8 791 755 -5 1. Includes Firth, Golden Bay Cement, Winstone Aggregates and Rocla Quarry Products. 2. Includes Humes Pipelines and Rocla Pipeline Products. 3. Figures restated to exclude CSP Galvanising 28 Fletcher Building Investor Presentation | © October 2013#29Building Products Result June 2012 June 2013 Plasterboard NZ$M 12 months 12 months % A Volumes and earnings up in strong New Zealand residential market. Sales 1,390 1,350 -3 EBITDA¹ 146 159 +9 EBIT¹ 109 122 +12 Funds Employed 788 770 -2 EBITDA/sales % 10.5 11.8 EBIT/sales % 7.8 9.0 ROFE % 13.8 15.8 Insulation Operating earnings down 23% due to continued competitive pressures in Australia and New Zealand. Coated Steel Australian rollforming volumes down year on year, New Zealand volumes & earnings improved. Restructuring initiatives reduced Stramit's cost base. Roof Tile volumes up 10% with growth in New Zealand, Europe and Africa. 1. Before significant items 29 Fletcher Building Investor Presentation | © October 2013#30Building Products Earnings ahead due to improvement in NZ market Gross Sales NZ$m Building Products Plasterboard June 2012 12 months June 2013 12 months % A Volume A Price A EBITDA A 600 584 -3 Insulation¹ Coated Steel Products 954 940 -1 Roof Tile Group² Coated Steel NZ3 Coated Steel Australia 1. Includes Forman and Home & Dry 2. Includes NZ, Europe, Asia, Africa, USA 3. Includes Dimond and Pacific Coilcoaters 30 Fletcher Building Investor Presentation | © October 2013#31Laminates & Panels Result June 2012 NZ$M 12 months June 2013 12 months % A Sales 1,849 1,738 -6 EBITDA¹ 205 180 -12 EBIT¹ - Laminex¹ 80 68 62 -9 - Formica¹ 71 58 -18 Total EBIT 139 120 -14 Funds Employed 1,799 1,788 -1 EBITDA/sales% 11.1 10.4 EBIT/sales% 7.5 6.9 ROFE % 7.7 6.7 1. Before significant items 31 Fletcher Building Investor Presentation | © October 2013 Formica Operating earnings reduced by 18% due to declines in Europe and further Bilbao closure costs. Volumes in North America up slightly. Operating earnings growth driven by improved margins and efficiency gains. South-East Asia volumes up but China and Taiwan subdued. European volumes down 5% with continuing weak demand. Laminex Operating earnings 9% lower, with Australia down but New Zealand up strongly. Revenues down 9% in Australia due to pressure on prices and margins.#32Laminates & Panels Volumes up in North America, down elsewhere Gross Sales NZ$m Laminex Australia New Zealand' Formica Asia Europe North America 1. O'Briens countertop businesss sold in November 2012 32 Fletcher Building Investor Presentation | © October 2013 June 2012 12 months June 2013 12 months % A Volume A Price A EBITDA A 901 816 -9 133 117 -12 213 205 -4 294 247 -16 336 339 +1#33Formica: decline in earnings due to additional costs of Bilbao plant closure and lower volumes in Europe EBIT NZ$m¹ Asia North America Europe Corporate Total EBIT 1. Excluding significant items 33 Fletcher Building Investor Presentation | © October 2013 June 2012 June 2013 12 months 12 months % A 38 37 -3 34 41 +21 13 (5) (14) (15) 71 58 (18)#34Distribution Result June 2012 June 2013 NZ$M 12 months 12 months % A Sales: PlaceMakers 779 850 +9 Tradelink/Mico 1,482 1,291 -13 PlaceMakers Strong revenue growth due to recovery in residential homebuilding. Earnings growth assisted by cost reduction and efficiency measures. EBITDA 87 71 -18 Tradelink EBIT: 65 50 PlaceMakers 27 36 +33 Revenue down in difficult trading conditions Tradelink/Mico 38 14 -63 Funds Employed: Branch improvement programme underway & early results encouraging PlaceMakers 141 136 Tradelink/Mico 675 567 EBIT/sales % PlaceMakers 3.5 4.2 Tradelink/Mico 2.6 1.1 ROFE % PlaceMakers Tradelink/Mico 19.1 26.5 5.6 2.5 34 Fletcher Building Investor Presentation | © October 2013#35Construction Result Residential earnings up 55% due to strong house sales in Auckland. Continued momentum in Canterbury with residential house repairs. and earthquake recovery work. Construction backlog of $1,022m as at 30 June 2013. Preferred contractor/solution provider on $640m of other projects. Further land procured for new residential housing in Auckland. June 2012 June 2013 NZ$M 12 months 12 months % A Sales EBITDA 1,040 1,193 +15 61 95 +56 EBIT 50 87 +74 Funds Employed 109 69 -37 • EBITDA/sales % 5.9 8.0 EBIT/sales % 4.8 7.3 ROFE % 45.9 126.1 35 Fletcher Building Investor Presentation | © October 2013#36Strong improvement in New Zealand residential consents, but Australia flat Building Consents New Zealand Residential Consents Non Res WPIP ($m)* Infrastructure WPIP ($m)* Australia June 2011 12 months June 2012 12 months June 2013 12 months 13/12 % Mvmt 13,539 15,414 18,731 +22 4,798 4,452 5,010 +13 5,999 6,447 6,817 +6 Source: Statistics NZ, Infometrics Residential Consents - Standalone houses 102,410 91,186 93,224 +2 - Other dwelling types 65,761 58,691 64,308 +10 - Total 168,171 149,877 157,532 +5 Non Res WPIP (A$Bn)* 34.8 33.8 33.8 Infrastructure WPIP (A$Bn)* 86.8 76.7 86.8 +13 US Residential Consents (US$Bn)** Non Res WPIP (US$Bn)** Source: ABS, BIS Shrapnel 237.5 259.9 290.5 +12 333.2 347.1 360.3 +4 Infrastructure WPIP (US$Bn)** * FY13 data includes estimate for month of June 2013 ** Information presented for calendar years. 2013 represents forecast position 36 Fletcher Building Investor Presentation | © October 2013 207.9 210.0 212.1 +1 Source: HIS Global Insight#37Fletcher Building - key listing information Listed on the New Zealand and Australian stock exchanges New Zealand Largest listed company by market capitalisation on the NZX' Australia Ranked #44 on the ASX1 Fletcher Building gained inclusion in the S&P/ASX 200 index in March 2011 US Level I sponsored American Depository Receipt (ADR) programme launched December 2010 Citi act as depository bank Ticker: FCREY CUSIP: 339305302 1. Ranking as at 22 October 2013 37 Fletcher Building Investor Presentation | © October 2013