Fletcher Building (FBU) AGM 2024 summary

Opening remarks and agenda

• Meeting held on 23 October 2024, chaired by Peter Crowley due to Acting Chair Barbara Chapman’s illness; Chapman joined online and delivered a pre-recorded address.

• Attendees included board members, leadership team, and auditors; meeting held both in-person and online.

• Agenda included addresses from the Acting Chair and CEO, Q&A, voting on resolutions, and general questions.

Financial performance review

• FY24 EBIT before significant items was NZD 509 million, down 35% from NZD 785 million in FY23; EBIT margin dropped to 6.6% from 10.2%.

• FY24 revenue was $7,683m, nearly flat compared to FY23.

• Net loss after tax of NZD 227 million, compared to net earnings of NZD 235 million in FY23, mainly due to impairments, legacy provisions, and discontinued operations; EPS fell to (29.0)c.

• Trading cash flows from continuing operations rose to NZD 784 million, but overall operational cash flows were NZD 398 million.

• Residential sector activity declined 30-40% from peaks; commercial and infrastructure construction also slowed, impacting revenue mix.

Board and executive committee updates

• Board renewal ongoing: four directors departed, two new appointments, and a search for a permanent chair expected to conclude by Q1 next year.

• Andrew Reding appointed as new CEO, bringing extensive industry experience and a focus on operational excellence.

• Board composition being adjusted to ensure a mix of governance, industry, portfolio, and trans-Tasman experience.