New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>No surprises in the result: 1H23 EBIT grew +8% to NZ$360m with strong growth in the materials and distribution divisions offset by low home sales</li><li>Some tweeks to guidance: FBU provided some more detail on the assumptions behind the NZ$800–855m FY23 EBIT guidance range</li><li>Free cash flow remains low: Net debt increased +NZ$660m to NZ$1.4b largely due to the NZ$200m of residential development land purchases, c.NZ$100m housing WIP inventory rebuild, and NZ$300m of capex and growth initiatives</li></ul>

No surprises in the result: 1H23 EBIT grew +8% to NZ$360m with strong growth in the materials and distribution divisions offset by low home salesSome tweeks to guidance: FBU provided some more detail on the assumptions behind the NZ$800–855m FY23 EBIT guidance rangeFree cash flow remains low: Net debt increased +NZ$660m to NZ$1.4b largely due to the NZ$200m of residential development land purchases, c.NZ$100m housing WIP inventory rebuild, and NZ$300m of capex and growth initiatives

Fletcher Building: 1H23 Result — A Formality