James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2016)
23 slides from James Hardie Industries's investor day presentation, Sep 15, 2016
Slide 1: Manufacturing and operations
Manufacturing and operations Ryan Kilcullen September 2016 Exhibit 99.4
Slide 2: Agenda
Agenda MANUFACTURING AND OPERATIONS OVERVIEW JAMES HARDIE MANUFACTURING ADVANTAGE JAMES HARDIE MANUFACTURING APPROACH APPROACH TO NEW LINE COMMISSIONING
Slide 3: Operations Strategy
Operations Strategy Provides a safe environment and good workplace for all employees, and complies with environmental regulations Enables JH’s Product Leadership of making highest quality fiber cement Ensures capacity is available during periods of peak demand Allows delivered unit cash costs to rem
Slide 4: Manufacturing Processes
Manufacturing Processes Process technology segments manufacturing approach Pre-Autoclave Post-Autoclave Manufacturing Process Continuous Process Raw Material Conversion Key Process Objectives Material handling Coatings application Long Continuous runs Raw material yield Optimize coating yield Invent
Slide 5: North America footprint & Performance
North America footprint & Performance *Production was suspended at the Summerville plant in November 2008 200 MMstdft 360 MMstdft 666 MMstdft 250 MMstdft 300 MMstdft 600 MMstdft 700 MMstdft 560 MMstdft 190 MMstdft Largest fiber cement producer in North America 1,505 manufacturing employees 9 manufac
Slide 6: What is Operations Organization?
What is Operations Organization ? Supply Chain New Capacity Design Reliability & Pci/PdI Platform Development Finance & Human Resources Engineering Manufacturing ROCE Optimization Cost Performance Safety in every part of our process. Delivering on our brand promise while optimizing returns Total val
Slide 7: James Hardie's manufacturing advantage
James Hardie’s manufacturing advantage
Slide 8: JH manufacturing: Major lever in our competitive advantage
JH manufacturing: Major lever in our competitive advantage Proprietary technology delivers Innovation in process capability unit cost & ROCE advantage enables product leadership — Unique throughput advantage in = Process capability to deliver our Hatscheck manufacturing i i i iati = Engineered scale
Slide 9: Scale as a competitive advantage
SCALE AS A COMPETITIVE ADVANTAGE Manufacturing scale creates a significant competitive advantage
Slide 10: Manufacturing scale evolution
Manufacturing scale evolution Interlever Finishing Tub Config Key:
Slide 11: Process & Product capability advantage
Process & Product capability advantage Product thickness & density control HardieTrim® & Artisan product lines Fit-to-purpose manufacturing processing HardieZone ® Engineered for Climate Post-processing engineering HardieShingle ® Coatings application expertise ColorPlus ® Technology Internally deve
Slide 12: Manufacturing advantage summary
Manufacturing advantage summary Step change engineering focus has delivered a substantial manufacturing scale advantage Constant investment in manufacturing process capabilities enable our product differentiation Flexibility in manufacturing and capacity model allow for cost advantage through market
Slide 13: James Hardie's manufacturing Management System
James Hardie’s manufacturing Management System
Slide 14: Manufacturing Gates 2017
Manufacturing Gates 2017 Gate requirements still in place from FY16 Path to achieve a journey … tasking sites to learn to run as holistic business Goal achievement requires understanding of the interrelated nature of metrics Safety First Gate Quality & Service Second Gate Machine Performance Third G
Slide 15: First Gate: Safety
First Gate: Safety Safety First Gate Goal: Zero Harm Safety remains the #1 priority Organization Culture Work Environment Engineering Capability Training and Development Feedback Loop Optimization World Class Safety Culture Work Environment Training & Development Engineering & Process Capability Org
Slide 16: Second Gate: Quality & Service
Second Gate: Quality & Service 100% 1st Pass & 97% Service Improve schedule adherence Quality & Service Second Gate Goal: Deliver on the Brand Promise Quality in execution Reduce process variation Increase process sustainability
Slide 17: Third Gate: Machine Performance
Third Gate: Machine Performance Machine Performance Third Gate Goal: 100% PcI-PdI Design with 10% Total Delay Optimize utilization … avoid unnecessary machine start-up Focus on total delay to increase net hours, machine throughput and plant utilization Eliminate tradeoffs between waste, speed or del
Slide 18: Fourth Gate: Cost Optimization
Fourth Gate: Cost Optimization Cost Optimization Fourth Gate Goal: Tight cost control as we add capacity to deliver within Guidance of 20-25% EBIT Drive total cost efficiencies … understand financial tradeoffs Improve machine throughput Reduce finishing hours Optimize fixed cost structure Increase t
Slide 19: Start-up performance
(@] vames Hardie START-UP PERFORMANCE
Slide 20: Key concepts for our start-ups
Key concepts for our start-ups Machine Performance Time Learning Curve Break-Even Performance Historical Start-Up Approach Focus on time to break-even performance Machine speed used as primary measure of progress Historical Start-Up Approach Low material yield results in high cost learning curve Sta
Slide 21: Plant City start-up approach
Plant City start-up approach Organizational Concepts Firewall the start-up organization Separate the “start-up” team into a planning team and an execution team Minimize “new-in-position” employees Operational Concepts Maximize learning per dollar spent on the start-up Minimize volume produced at a p
Slide 22: Plant City vs. recent NA start-ups
Plant City vs. recent na start-ups Plant City 4 is delivering significantly higher yield and similar machine performance with half the gross hours run – significantly lowering our “cost of learning”
Slide 23: Summary
Summary JH manufacturing capabilities continue to provide a significant source of competitive advantage Our gate philosophy in our approach to plant operations provides clarity for organization to deliver continuous improvement Significant progress has been made in our approach to capacity ramp-ups
James Hardie Industries — Investor Day (September 2016) on 6ix