FBU Trading Update – further Q&A

Auckland, February 14 2018: Following the media and investor/analyst briefings today, the Company provides the following information to supplement the release made this morning: Q. Will a final dividend be paid in respect of FY18? A. No decision has been made by the Company in relation to payment of a final dividend in respect of FY18. Q. What is the position in relation to your capital notes? No covenant breach has occurred in relation to the capital notes. Fletcher Building Industries Limited (FBI) is currently undertaking a rollover of its FBI110 Series. FBI will allow those FBI110 noteholders who have already made an election, and wish to change that election, to provide a new notice to the Company prior to the end of the election period. An announcement to this effect has been made by FBI earlier today. Q. What are the next steps in relation to the US Private Placement (USPP) noteholders? A. We have commenced a review process with our USPP holders to obtain a waiver from the covenant breaches (similar to the waiver that we have obtained from our commercial banking syndicate) and to negotiate the on-going terms of our lending agreements with them. Any negotiated position would need the support of a 50% majority of the noteholders in each series of notes. Q. What rights do the USPP noteholders have prior to granting the waiver? A. As was the case with our commercial banking syndicate, the breach of the financial covenants under the lending agreements with the USPP noteholders is an event of default giving rise to certain rights for those noteholders. These rights include the right for a 60% majority of the noteholders in each series of notes to demand repayment. No demand for repayment has been made by any USPP noteholder. Q. What do you expect to occur in relation to the USPP notes? A. Based on initial discussions with noteholders and our US legal and financial advisers, the Company believes it should be able to successfully conclude discussions with the noteholders by the end of March. Q. What access do you have to your current funding facilities with the commercial banking syndicate? A. We have agreed a level of available funding from our commercial banking syndicate which, together with our available cash, the Company believes should be sufficient during the upcoming negotiation period with our syndicate. Q. Is Acciona currently conducting due diligence on the Construction Division? A. No. As recently reported, an Acciona spokeperson has said "We are not currently looking for acquisitions in the New Zealand market, instead preferring organic growth. We already have a strong working relationship with Fletcher, but any potential collaboration between our companies on future opportunities remains confidential for commercial reasons." For further information please contact: Leela Gantman Head of Communications +64 27 541 6338 Leela.gantman@fbu.com Rodney Deacon Head of Investor Relations +64 21 631 074 Rodney.deacon@fbu.com End CA:00314206 For:FBU Type:GENERAL Time:2018-02-14 17:23:29