Dividend policy

The company does not have a stated policy of distributing a fixed percentage of earnings by way of dividend in any year. Rather, in fixing a dividend for any year it considers a number of factors including current and forecast earnings, internal capital requirements, growth options, availability of tax credits and the company's debt equity position. The company aspires to ensuring a dividend record that means the amount of the dividend is at least maintained and, where circumstances permit, is increased.

It is also the current intention of the board of directors of Fletcher Building to attach imputation credits and, where circumstances permit, Australian franking credit, to dividends paid on Fletcher Building shares held by New Zealand residents and by non-residents.

Notwithstanding the dividend policies above, and subject to the limitation on dividends in respect of Fletcher Building shares, the board of directors of Fletcher Building has an absolute discretion to change its intentions, to increase or reduce dividends, to authorise dividends at different rates in respect of different classes of Fletcher Building shares, or to authorise no dividends at all on any of all classes of Fletcher Building shares.

Fletcher Building can give no assurance about the level of dividends, if any, or the level of taxation credits attached to dividends.