James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2013)
38 slides from James Hardie Industries's investor day presentation, Sep 19, 2013
Slide 1: US Products & Segments
Exhibit 99.6 US Products & Segments David Donofrio USA Investor/Analyst Tour – Thursday 19th September 2013
Slide 2: Forward-looking statements
This Management Presentation contains forward-looking statements. James Hardie may from time to time make forward-looking statements in its periodic reports filed with or furnished to the SEC, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda a
Slide 3: Outline
Product & segment overview Market opportunity Competitive insights US Segment focus Questions Management Presentation 3 OUTLINE
Slide 4: Products & segments
Drive and maintain our product leadership position Provide strategic direction and concept design Focus on key growth segments / initiatives Program development to market execution Management Presentation 4 Products & segments
Slide 5: Product & segment flow
Centralized focus Strategic direction Divisional focus Market execution 5 Product & segment flow
Slide 6: Market landscape
Market landscape 6
Slide 7: Market indicators suggest the market is in recovery
Market indicators suggest the market is in recovery Single-family new construction & multifamily starts growing at a faster rate than the repair and remodel segment 7 MARKET LANDSCAPE
Slide 8: Wood-look products maintain about two thirds of the wall
Wood-look products continue to maintain ~ 2/3rds of the of the wall against stone, stucco, and brick 8 Based on product usage estimates provided by NAHB Wood-look share of total market opportunity
Slide 9: Growth opportunity varies by region
9 Growth opportunity varies by region, vinyl & wood in the north, wood and competitive cement in the south and west Internal estimates based on NAHB product usage data adjusted for regional market intelligence Wood look siding share
Slide 10: Total wood-look siding market in FY14 estimated at 4.6 bsf
We estimate the total wood-look siding market in FY14 to be 4.6 bsf 10 Internal estimates based on NAHB product usage data adjusted for regional market intelligence Market Size / Opportunity
Slide 11: Vinyl is underperforming US housing starts
Industry data 11 Vinyl is underperforming US housing starts
Slide 12: Consolidation in the vinyl siding segment
Consolidation in the vinyl siding segment 12 Associated Materials Product Mix 2000 2012 * Company Reports VINYL
Slide 13: Wood based siding is growing in well positioned markets
Wood based siding is growing in markets where it is well positioned Wood strength in its core markets is driven by; Strong channel position Trim & panels Pre-Finishers Install / trade bias Price Vinyl standard markets High paint costs Fragmented customer base Predominance of 1-Stepper Well positione
Slide 14: Category share regained through channel and Cemplank
14 Lost Category Share Regained through Channel/Cemplank Holding through Cemplank price increases Competitive fiber cement is growing with the category but not taking share
Slide 15: US Segment focus
US Segment focus 15
Slide 16: 35/90 strategy and four targeted customer segments
Our 35/90 strategy focuses on a product leadership platform and a unique position in our channel that enables growth within our 4 targeted customer segments Repair & remodel segment Single family new construction segment Multi Family segment Retail & interiors segment 16
Slide 17: Focus on single-family repair and remodel growth
We continue to focus our efforts around growth within the single-family repair and remodel segment Growth opportunity primarily from vinyl End-user is the decision maker Shift the mix to James Hardie differentiated products in mature fiber cement markets Momentum in vinyl-dominated markets, executin
Slide 18: Hardie Ambassador Program concept
Concept JH builds awareness & drives the preference for Hardie Products in vinyl battleground neighborhoods Partner with contractors for scale in battlegrounds Build lead generation and neighborhood competencies Leverage “2 thru 10” strategy Scalable & relocatable Over invest short term for long ter
Slide 19: Neighborhood Deep Dive
19 Population 120,000 Why?—what was the approach We broke into 12 sub neighborhoods Current investment of 20 days in canvasing & events 10,000 doors knocked 7,000 door hangers left 2 paid events 4 box events 2 Neighborhood events Neighborhood Deep Dive
Slide 20: Neighborhood Deep Dive
20 Neighborhood Deep Dive
Slide 21: R&R consumer lead generation – trial markets
21 R&R consumer lead generation – trial markets
Slide 22: R&R consumer web traffic – trial markets
Chicago = + 17% US = +17% 22 R&R consumer web traffic – trial markets
Slide 23: R&R contractor growth – trial markets
23 R&R CONTRACTOR GROWTH – TRIAL MARKETS
Slide 24: ColorPlus Full Wrap provides best value to consumer
ColorPlus “Full Wrap” provides the best value to the consumer in the repair and remodel segment Unique formulation – HardieZone engineered for climate Superior finish technology – Colorplus Technology platform Design flexibility – all products 24
Slide 25: ColorPlus siding, accessories and trim innovation
ColorPlus Siding & Accessories Trim Innovation (Mouldings) Job Packs Quality Installation Channel Moulding Profiles: 25 “Full Wrap” Enabled
Slide 26: Single-family new construction segment is resurging
Single-family new construction segment is resurging, focus remains on our position with the production, regional & custom builders. Drive conversions from wood & vinyl Maintain 90% share Tactically price Unique position in the channel to enable 35/90 Enable both push / pull strategies 26
Slide 27: Product strategy in single-family new construction
Product strategy in single-family new construction ColorPlus Hardie brand primed Cemplank 27
Slide 28: Continue to drive the value of a 100% Hardie home
CONTINUE TO DRIVE THE VALUE OF A 100% HARDIE HOME 28
Slide 29: Production and custom builders channel servicing
Production new home builders are primarily serviced by the volume lumber dealer or thru turnkey install from the vinyl distributors; Custom builders are primarily serviced thru the Independent lumber dealer. Held our position with the volume lumber dealer & vinyl distributors Independent lumber deal
Slide 30: Initiatives targeting the independent lumber dealer
Market initiatives targeting the Independent lumber dealer who services the top end of the single-family new construction market 30
Slide 31: Multifamily segment: moving to early stage market development
We have built a late stage infrastructure to manage our category share in the MultiFamily segment – our focus moves to early stage market development Growth from wood, vinyl & stucco Job bid model Largely metro biased Early stage efforts to drive a differentiated position 31
Slide 32: Dual brand strategy for multifamily
Dual brand strategy to target late stage category share and drive our product strategy around a differentiated position in the segment Prevail ColorPlus Commercial panel product line 32
Slide 33: Multifamily design trends toward modern panelized look
MF design trends in urban metro moving to modern panelized look 33 PRODUCT STRATEGY
Slide 34: Retail and interior rigid backerboard segment is maturing
The retail and interior rigid backerboard segment is maturing; continued focus on share growth and maximizing returns Management Presentation Source: 2013 Ciprus Report 34
Slide 35: Execute a 2 product strategy
Strong value proposition to the user Price premium vs. competitors Source: 2013 Ciprus Report, JH financial results 35 EXECUTE A 2 PRODUCT STRATEGY
Slide 36: Delivered through retail and Protile specialty channel
Delivered thru the retail & protile specialty channel Source: 2013 Ciprus Report Retail Protile 36
Slide 37: Summary
Recovering market Wood look siding is greater than 2/3 of the cladding opportunity in the US Vinyl share declining as the US housing recovery take place Engineered wood has taken some share in the downturn and presents itself as a competitive threat in markets susceptible to a wood based product Jam
Slide 38: Questions?
| : James Hardie Questions? 38
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