James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (August 2009)
26 slides from James Hardie Industries's investor day presentation, Aug 19, 2009
Slide 1: International Operations
International Operations Grant Gustafson 18 August 2009
Slide 2: Forward-looking statements
The presentation contains forward-looking statements. We may from time to time make forward-looking statements in our periodic reports filed with or furnished to the US Securities and Exchange Commission, on Forms 20-F and 6-K, in our annual reports to shareholders, in offering circulars, invitation
Slide 3: International Operations
Plus Exports: South Korea, Middle East, etc. James Hardie's international operations comprise Asia Pacific and Western Europe. International Operations
Slide 4: Business Profile
Asia Pac ~ 700 employees ~ 40 employees Import Model The international operations contribute approximately US$300mm to JH's top line. Business Profile
Slide 5: Asia Pacific Fibre Cement
Five manufacturing plants in Australia, New Zealand, the Philippines FY09 EBIT at 17% Up from 15% in FY07 Slightly up from FY08 Asia Pacific contributes US$273mm in revenues and $47mm in EBIT. Asia Pacific Fibre Cement
Slide 6: Asia Pacific Market Profile
The Philippines is a very different market from Australia and New Zealand. Primary Construction Method: Income Per Capita: Wood Frame Wood Frame Concrete Hollow Block High High Low Asia Pacific Market Profile
Slide 7: Market Conditions
Note: Some buffer from commercial and R&R market segments for JH business; Note: Philippines FY2009 reflects government figures, Q1 FY2010 a JH estimate. New housing approvals remain soft in the region. Market Conditions
Slide 8: Q1 FY10 - Results Overview
FY10 is off to a good start; we expect that Q1 operational improvements will further materialise during the balance of the year. Asia Pacific Building Products (Excl Pipes)* Unit Volume Down ~10% Average Sell Price Up ~2% EBIT Margin ~Flat PDG Positive across BU's * Consolidated on an $A basis; year
Slide 9: Australia
Manufacturing is prime area of focus (efficiency and new products) Pipes addressable market off significantly (>30%); business has re-sized and adjusted sales/product approach Drive PDG and mix shift in building products OTWC New products (including continued Scyon penetration) R&R and small builder
Slide 10: Australia - Scyon
Scyon(tm) Matrix(tm) cladding Scyon(tm) Axon(tm) cladding Scyon(tm) General Purpose flooring Australia - Scyon
Slide 11: Australia - Scyon
Scyon(tm) Trim and Scyon(tm) Linea(tm) weatherboards Scyon(tm) Stria Australia - Scyon
Slide 12: Scyon Volume Mix
FY09 Revenue by Product FY07 Revenue by Product Scyon's share of Australia sales continues to increase. Scyon Volume Mix
Slide 13: New Zealand
Highly penetrated market hit hardest in international business Manufacturing reorganization New Superplank line comes on-stream in September Drive PDG & mix shift Linea, HardieGlaze/Horizon R&R/small builders a major focus Commercial Sales Execution New Zealand
Slide 14: New Zealand Commercial Sector
New Zealand Commercial Sector
Slide 15: New Zealand Horizon and HardiGlaze Lining
New Zealand Horizon(tm) and HardiGlaze(r) Lining
Slide 16: New Zealand R&R (Alterations and Additions)
Before New Zealand After R&R (Alterations and Additions)
Slide 17: Philippines
Now generating respectable returns despite value pricing constraints Getting paid more for products Considerable manufacturing efficiency and overhead cost improvements (must be sustained) Significant shift in market approach toward product pull, with upside still to be realized Beyond wood substitu
Slide 18: Representative "C" Homes
Representative "C" Homes C - House
Slide 19: Our most common product application today: Ceilings
Our most common product application today Ceilings
Slide 20: Business Priorities
Primary Demand Growth Product Leadership Organisational Effectiveness Manufacturing Effectiveness Safety We have five priorities which span the Asia Pacific business... ....to drive improved and sustainable results. Business Priorities
Slide 21: Primary Demand Growth
Primary Demand Growth There are several themes in driving Asia Pacific PDG going forward. Increase share of house and alternative material conversions - - OTWC improvements - - Demonstrating the benefits R&R and small builder penetration, plus Commercial sector growth Sales execution (primarily New
Slide 22: Product Leadership
Develop new products and reinforce innovation leadership position Continue to increase differentiated product penetration in Australia and New Zealand Introduce new/improved product development program to the Philippines and control destiny through product pull market approach Serve as product "incu
Slide 23: Organisational Effectiveness
Select management talent injected from JHBP Right-sized operations, overhead spend Select promotions and role expansions (manufacturing, logistics) Enhance manufacturing flexibility through skill development Enhance cash focus (working capital management) Lift individual and business unit performanc
Slide 24: Manufacturing Effectiveness
Local manufacturing strategy Enable product differentiation Achieve low unit costs Our Asia Pacific manufacturing approach... Manufacturing Effectiveness 24
Slide 25: Safety
Goal: - Incident rate of 2 - Severity of 20 Our ongoing commitment is to provide for a safe working environment. Safety 25
Slide 26: International Operations
International Operations Grant Gustafson 18 August 2009