James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q3 FY21 Earnings Presentation
34 slides from James Hardie Industries's earnings presentation, Feb 9, 2021
Slide 1: Q3 FY21 Management Presentation
Q3 FY21 MANAGEMENT PRESENTATION 9 February 2021 Exhibit 99.5
Slide 2: Cautionary Note on Forward-Looking Statements
Page 2 James Hardie Q3 FY21 Results CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Management Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the “Company”) may from time to time make forwar
Slide 3: Agenda
Page 3 James Hardie Q3 FY21 Results AGENDA • Strategy Update • Q3 FY21 Financial Results • Questions and Answers Dr. Jack Truong Chief Executive Officer Jason Miele Chief Financial Officer
Slide 4: Strategy Update
STRATEGY UPDATE
Slide 5: Global Strategy Update
Page 5 James Hardie Q3 FY21 Results Extend Into the Consumer Brand Marketing to homeowners to create demand GLOBAL STRATEGY UPDATE US$83 million in cumulative global LEAN savings Delivered 7+% PDG across last 7 quarters in NA Reduced working capital by US$198 million in FY21 Accelerated stra
Slide 6: Market Driven Innovation Expands Opportunities for Organic Growth
Page 6 James Hardie Q3 FY21 Results Market Driven Innovation Expands Opportunities for Organic Growth Market Driven Innovation - Innovation Platform: Innovative products that deliver endless possibilities of design and aesthetics for the homeowner - Superior Performance: Deliver key performance prop
Slide 7: Profitable Organic Growth via Innovation
Page 7 James Hardie Q3 FY21 Results PROFITABLE ORGANIC GROWTH VIA INNOVATION New Jersey, USA United Kingdom NSW, Australia California, USA
Slide 8: Accelerate Our Penetration into Repair & Remodel Segment
Page 8 James Hardie Q3 FY21 Results ACCELERATE OUR PENETRATION INTO REPAIR & REMODEL SEGMENT Create Demand with Homeowners and Integrate with Customers to Expand Growth in Repair & Remodel Segment 44 Million homes that are more than 40 years old • Significant opportunity for re-Siding and remodeling
Slide 9: Extend into the Consumer Brand
Page 9 James Hardie Q3 FY21 Results EXTEND INTO THE CONSUMER BRAND Market directly to the homeowners to communicate the endless possibilities of aesthetic design to create more demand for James Hardie Brand exterior products • Lasting beauty with endless design possibilities • Trusted protection: du
Slide 10: Extend into the Consumer Brand
Page 10 James Hardie Q3 FY21 Results EXTEND INTO THE CONSUMER BRAND
Slide 11: Global Capacity Expansion and New Products Capability
Page 11 James Hardie Q3 FY21 Results GLOBAL CAPACITY EXPANSION AND NEW PRODUCTS CAPABILITY FY21 Prattville 1 Tacoma ColorPlus Prattville HLD Trim FY22 FY23 FY24 NA SM Capacity NA Finishing Capacity APAC SM Capacity R&D Pilot Plants R&D Pilot Plants Fontana, CA Rosehill, Aus Carole Park Prattville 2
Slide 12: Global Growth & Strong Returns – Q3 FY21
Page 12 James Hardie Q3 FY21 Results GLOBAL GROWTH & STRONG RETURNS – Q3 FY21 Global Net Sales US$738.6 million +20% Global Adjusted NOPAT US$123.3 million +59% Europe Net Sales €85.3 million +12% EBIT Margin 10.2% North America Net Sales US$518.1 million +20% EBIT Margin 30.0% Asia Pacific Net Sale
Slide 13: Global Growth & Strong Returns – Nine Months YTD FY21
Page 13 James Hardie Q3 FY21 Results GLOBAL GROWTH & STRONG RETURNS – 9 Months YTD FY21 Global Net Sales US$2.1 billion +9% Global Adj. EBIT US$455.9 million +25% Operating Cash Flow US$678.4 million +72% Global Adjusted NOPAT US$333.1 million +25%
Slide 14: Q3 FY21 Financial Results
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Slide 15: Global Results Overview
Page 15 James Hardie Q3 FY21 Results • All 3 regions delivered strong profitable growth • Adjusted EBIT increased 57% in Q3, driven by: ◦ North America increased US$43.3 million (+39%) ◦ Europe increased €6.6 million (+300%) ◦ APAC increased A$11.7 million (+34%) • Adjusted EBIT increased 25% in the
Slide 16: North America Summary
Page 16 James Hardie Q3 FY21 Results NORTH AMERICA SUMMARY Outstanding Net Sales Growth (+20%) and Adjusted EBIT Growth (+39%), with 30.0% Adjusted EBIT Margin 1 Excludes restructuring expenses • Exteriors volume increased +19% in Q3 and +11% in the first nine months of FY21 ◦ Accelerated share gain
Slide 17: Europe Summary
Page 17 James Hardie Q3 FY21 Results EUROPE SUMMARY • Net Sales increased 12% in Q3: ◦ Fiber Cement Net Sales €: +18% in Q3 ◦ Fiber Gypsum Net Sales €: +11% in Q3 driven by strong double digit growth in Germany • Net Sales increased 2% in the first nine months ◦ Strong organic net sales growth in Q2
Slide 18: APAC Summary
Page 18 James Hardie Q3 FY21 Results APAC SUMMARY • Continued market share gain in Australia and New Zealand • First nine months volume, gross profit and EBIT unfavorably impacted by government imposed COVID-19 lockdowns in the Philippines and New Zealand during the first quarter • Adjusted EBIT gro
Slide 19: Operating Cash Flow Up, Capital Expenditures Down
Page 19 James Hardie Q3 FY21 Results 1 OPERATING CASH FLOW UP CAPITAL EXPENDITURES DOWN CAPEX spend for the nine months of US$77.0 million • Carole Park, Australia brownfield expansion commissioned in the third quarter of FY21 • Prattville, AL, USA greenfield expansion on-track • Sheet Machine #1: M
Slide 20: Liquidity Profile
Page 20 James Hardie Q3 FY21 Results LIQUIDITY PROFILE Corporate debt structure • On 15 January 2021 redeemed US$400 million 4.75% senior unsecured notes maturing 2025 - US$9.5 million call premium and US$3.6 million in unamortized financing costs to be recorded in Q4 FY21 • €400 million (US$492 mil
Slide 21: Capital Management and Allocation
Page 21 James Hardie Q3 FY21 Results Strong capital structure and cash flows to execute on capital allocation objectives: • Preserve strong liquidity position and financial flexibility; • Invest in capacity expansion to support organic growth; • Invest in market driven innovation to drive organic gr
Slide 22: Full Year FY21 Guidance
Page 22 James Hardie Q3 FY21 Results FULL YEAR FY21 GUIDANCE Management raises full year FY21 Adjusted net operating profit1 to range of US$440 million and US$450 million • Prior Adjusted net operating profit range of US$380 million and US$420 million • The comparable full year Adjusted net operatin
Slide 23: Questions
QUESTIONS
Slide 24: Appendix
is eH APPENDIX
Slide 25: General Corporate Costs and Research & Development
Page 25 James Hardie Q3 FY21 Results GENERAL CORPORATE COSTS • Stock compensation expense was flat in Q3 and increased US$11.5 million in the first nine months • Increase in stock compensation expense for the nine months was driven by share price accretion • Legal expenses increased US4.5 million in
Slide 26: Depreciation and Amortization
Page 26 James Hardie Q3 FY21 Results DEPRECIATION AND AMORTIZATION US$ Millions Q3 FY21 Q3 FY20 9 Months FY21 9 Months FY20 Depreciation and amortization North America Fiber Cement 21.8$ 22.0$ 64.7$ 66.0$ Asia Pacific Fiber Cement 3.2 3.2 9.0 9.4 Europe Building Products 7.8 3.9 20.1 15.0 Other Busi
Slide 27: Asbestos Claims Data
Page 27 James Hardie Q3 FY21 Results First Nine Months ended 31 December 2020: • Net cash outflow was 13% below actuarial expectations • Gross cash outflow was 12% below actuarial expectations • Claims received were 9% below actuarial estimates and 16% below pcp • Number of claims settled were up 1%
Slide 28: Non-GAAP Financial Measures and Terms
Page 28 James Hardie Q3 FY21 Results NON-GAAP FINANCIAL MEASURES AND TERMS This Management Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Media Rel
Slide 29: Financial Measures – GAAP Equivalents
Page 29 James Hardie Q3 FY21 Results Financial Measures – GAAP equivalents This document contains financial statement line item descriptions that are considered to be non-GAAP, but are consistent with those used by Australian companies. Because the company prepares its Condensed Consolidated Financi
Slide 30: Financial Measures – GAAP Equivalents: Adjusted EBIT
Page 30 James Hardie Q3 FY21 Results Financial Measures – GAAP equivalents NON-GAAP FINANCIAL MEASURES Adjusted EBIT US$ Millions Q3'21 Q3'20 9 Months FY21 9 Months FY20 EBIT 131.8$ 88.2$ 328.1$ 373.3$ Asbestos: Asbestos adjustments 35.8 18.5 115.8 (8.8) AICF SG&A expenses 0.3 0.5 0.9 1.3 Restructur
Slide 31: Non-GAAP Financial Measures
Page 31 James Hardie Q3 FY21 Results NON-GAAP FINANCIAL MEASURES US$ Millions Q3'21 Q3'20 9 Months FY21 9 Months FY20 Asia Pacific Fiber Cement Segment EBIT 33.5$ 23.4$ 91.1$ 75.2$ Restructuring expenses - - 3.4 - Asia Pacific Fiber Cement Segment Adjusted EBIT excluding restructuring expenses 33.5$
Slide 32: Non-GAAP Financial Measures
Page 32 James Hardie Q3 FY21 Results NON-GAAP FINANCIAL MEASURES US$ Millions Q3'21 Q3'20 9 Months FY21 9 Months FY20 Research and Development Segment EBIT (7.9)$ (6.6)$ (20.4)$ (19.7)$ Restructuring expenses - - 0.1 - Research and Development Segment Adjusted EBIT excluding restructuring expenses (
Slide 33: Non-GAAP Financial Measures
Page 33 James Hardie Q3 FY21 Results NON-GAAP FINANCIAL MEASURES 1 Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments Adjusted net operating profit US$ Millions Q3'21 Q3'20 9 Months FY21 9 Months FY20 Net operating profit
Slide 34: Q3 FY21 Management Presentation
Q3 FY21 MANAGEMENT PRESENTATION 9 February 2021
James Hardie Industries — Q3 FY21 Earnings Presentation on 6ix