Notes to the summary financial statements

1 Basis of presentation

The summary financial statements presented are those of Fletcher Building Limited and its subsidiaries (the “group”). The Fletcher Building group is a profit-oriented entity. These summary financial statements have been prepared in accordance with a New Zealand standard that complies with International Financial Reporting Standard No. 43. The summary financial statements have been extracted from full financial statements that have been prepared in accordance with New Zealand standards that comply with International Financial Reporting Standards. The full financial statements, signed on 13 August 2008, have been audited by KPMG and given an unqualified opinion.The summary financial statements cannot be expected to provide as complete an understanding of the financial affairs of the group as the full financial statements, which can be found on www.fletcherbuilding.com.

2 Acquisitions

Acquisitions made during the year were Formica Corporation on 2 July 2007, Fair Dinkum Homes and Sheds on 3 August 2007, Cameron Quarries on 5 October 2007, DVS on 1 February 2008, and Morinda Australia Pty Ltd (trading as Garage World and Shed Boss) on 1 May 2008.

A formal fair value exercise was undertaken for these acquisitions, which resulted in the fair value of the assets and liabilities described in the statement of cashflows. Goodwill on acquisition represents the value in the companies attributable to their expected profitability and the cost synergies to be achieved.

Formica Corporation

The Formica Corporation was acquired for US$700 million, with additional payments of up to US$50 million contingent on performance milestones.

The following are the values recognised in the financial statements:

In the year to 30 June 2008 Formica contributed sales of $1,077 million and operating earnings of $16 million.

Fair Dinkum Homes and Sheds, Cameron Quarries, DVS and Morinda

Fair Dinkum Homes and Sheds, Cameron Quarries, DVS and Morinda Australia were acquired for an aggregate consideration of NZ$61 million.

In the year to 30 June 2008 these acquisitions contributed sales of $21 million and operating earnings of $6 million. If the acquisitions had occurred on 1 July 2007, it is estimated that the contribution to group sales would have been $31 million and operating earnings $7 million.

3 Taxation expense

The tax expense of $150 million is after recognition of the tax benefit of non-assessable income of $27 million earned by the group in the year and the benefit of other permanent differences of $32 million. The tax expense of $113 million for the prior year was after recognition of a net unusual tax benefit of $80 million. The tax liability on the normal trading profit in the prior year was $193 million.

Substantial security holders

Consistent with notices given to the company under the Securities Markets Act 1988, the substantial security holders in the company and their relevant interests as at 31 July 2008 are noted below. The total number of issued voting securities of Fletcher Building Limited as at that date was 503,361,742.