Dividend information

(1) This summary is of a general nature and the tax rates used and the calculations are intended for guidance only. As individual circumstances will vary, shareholders are advised to seek independent tax advice.

(2) The dividend has imputation credits attached at a 28 percent tax rate.

(3) The supplementary dividend is payable to non-New Zealand shareholders and has the effect of removing the cost of New Zealand non-resident withholding tax (NRWT). Non-resident shareholders with a 10% or greater direct shareholding are not eligible to receive supplementary dividends but are exempt from NRWT.

(4) There are no Australian franking credits attached to this dividend and the conduit foreign income component is nil. Consistent with the previously announced policy, Fletcher Building will alternately frank and impute successive dividends to the maximum extent possible. This will mean that all interim dividends will be fully franked with Australian tax credits, or franked to the maximum extent possible and all final dividends will be fully imputed with New Zealand tax credits, or imputed to the maximum extent possible.

(5) For all NZ resident shareholders who do not hold an exemption certificate, resident witholding tax (RWT) is required to be deducted at 5% from the gross dividend which has not been credited with imputation credits at 28 percent. Accordingly, for those shareholders, a deduction of 1.1806 cents per share will be made on the date of payment from the dividend declared of 17.0 cents per share and forwarded to Inland Revenue. Resident shareholders who have a tax rate less than 33% will need to file a tax return to obtain a refund of the RWT.

(6) NZ non-resident withholding tax at the rate of 15% on the gross dividend for NZ tax purposes.

(7) This summary uses two examples of the effect of tax in Australia. The first uses the top marginal tax rate of 47.5% including the Medicare and Flood levies. The second example uses the 15% income tax rate applicable in Australia to complying superannuation funds, approved deposit funds and pooled superannuation trusts.  Different tax rates will apply to other Australian shareholders, including individuals, depending on their circumstances.

(8) This illustration does not purport to show the taxation consequences of the dividend for non-residents of New Zealand and Australia. Shareholders resident in other countries are encouraged to consult their own taxation adviser.