Fletcher Building (FBU) AGM 2024 summary

Opening remarks and agenda

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

• Meeting held on 23 October 2024, with addresses from the Acting Chair and CEO, followed by Q&A and voting on resolutions.

• Attendees included shareholders, proxies, 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%.

• FY24 revenue was $7,683m, nearly flat compared to FY23, but EBIT dropped to $509m from $785m.

• Net loss after tax was NZD 227 million, compared to net earnings of NZD 235 million in FY23, mainly due to impairments and discontinued operations.

• Cash flows from operating activities increased slightly to $398m; strong cash flow from continuing operations (NZD 784 million).

• Residential sector activity declined 30-40% in Australia and New Zealand, with additional slowdowns in commercial and infrastructure sectors.

Board and executive committee updates

• Board renewal ongoing: four directors departed, two new appointments (Andrew Reding and Tony Dragicevich); Andrew Reding appointed as new MD & CEO.

• Key priority is the appointment of a permanent Chair, expected to conclude by Q1 next year.

• CEO Andrew Reding highlighted operational visits, focus on safety, and engagement with major shareholders.

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