James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (June 2024)
58 slides from James Hardie Industries's investor day presentation, Jun 21, 2024
Slide 1: James Hardie Investor Day 2024
James Hardie Investor Day 2024 DAY ONE | FRIDAY, JUNE 21ST | WASHINGTON D.C. For personal use only © 2023 Warner Bros. Discovery, Inc. or its subsidiaries and affiliates. All trademarks are the property of their respective owners. All rights reserved.
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements Cautionary note on Use of non-GAAP financial information; For personal use only forward-looking statements Australian equivalent terminology This Management Presentation contains forward looking statements within the This Management Presentation includes
Slide 3: Formalities
Formalities For personal use only Attendance Charging Your Items Presentations Badges & Groups Welcome Bags Agenda JAMES HARDIE INVESTOR DAY 3 2024
Slide 4: Agenda: Day One
Agenda: Day One DAY ONE | FRIDAY, JUNE 21ST | WASHINGTON D.C. Registration/Breakfast at All Sheraton Reston Logistics Overview James Brennan-Chong For personal use only Welcome Aaron Erter, CEO People Strategic Priorities Farhaj Majeed APAC John Arneil Europe Christian Claus 9:00am Break for 5min No
Slide 5: Agenda: Day Two
Agenda: Day Two DAY TWO | MONDAY, JUNE 24TH | NEW YORK Registration/Breakfast at Pendry Hotel All For personal use only Logistics Overview Joe Ahlersmeyer Welcome Aaron Erter, CEO Finance Strategic Priorities Rachel Wilson, CFO Global Operations Strategic Priorities Ryan Kilcullen 9:00am Break for 5
Slide 6: Zero Harm
Zero Harm For personal use only Stay Together as a Group Utilize Safety Equipment When Provided (E.g., Hard Hats, etc.) Stay Hydrated and Leverage Facilities WATER as Needed Please be Aware of Your Surroundings and EXIT Identify the Nearest Emergency Exit JAMES HARDIE INVESTOR DAY 6 2024
Slide 7: What The Best Are Made Of
For personal use only What The Best Are Made Of JAMES HARDIE INVESTOR DAY 7 2024
Slide 8: Aaron Erter, Chief Executive Officer
For personal use only Aaron Erter CHIEF EXECUTIVE OFFICER © 2023 Warner Bros. Discovery, Inc. or its subsidiaries and affiliates. All trademarks are the property of their respective owners. All rights reserved. JAMES HARDIE INVESTOR DAY 8 2024
Slide 9: Goals For The Two Days In the Field
Goals For The Two Days “In the Field” For personal use only Experience the James Hardie Value Proposition What it means to be “Homeowner Focused, Customer and Contractor Driven ” How we Activate Our Purpose JAMES HARDIE INVESTOR DAY 9 2024
Slide 10: James Hardie: Snapshot
James Hardie: Snapshot ASX: JHX; NYSE: JHX Total Shareholder Return3 300% For personal use only World’s #1 Producer and Marketer of High-Performance Fiber Cement Siding 135+ 250% James Hardie ASX 200 Years 200% S&P 500 150% ~5K Employees Worldwide1 A $21Bn Market 100% Capitalization2 US $14Bn ~4Bn S
Slide 11: James Hardie Global Reach
James Hardie Global Reach NORTH AMERICA FY24 GROUP Net Sales By Region Net Sales US $2.9 billion RESULTS For personal use only EUROPE +4% vs FY23 Net Sales 12% US $3.9 billion EBIT APAC 14% US $921 million +4% vs FY23 +20% vs FY23 Adjusted EBIT 74% US $941 million US +21% vs FY23 EUROPE APAC Net Sal
Slide 12: Embracing Our Future Remains Rooted In Our Purpose
Embracing Our Future Remains Rooted In Our Purpose PURPOSE VISION MISSION For personal use only Building a Better Future To inspire how communities design, Be the most respected and sought after for AllTM build, and grow today and tomorrow. building materials brand in the world. VALUES Honor Our Col
Slide 13: Activating Our Purpose
Activating Our Purpose Building a Better Future for All For personal use only $1.85Bn1 Invested in Local HABITAT STRONG Communities Building efficient, resilient Supporting our Veterans housing for a changing climate and First Responders with Hardie Honors Copyright 2023 Tunnel to Towers Foundation.
Slide 14: The James Hardie Strategy
The James Hardie Strategy Homeowner Focused, Customer and Contractor Driven For personal use only Strategic Supported by Our Enabled by Initiatives Foundational Imperatives Profitably grow and take share Customer Integration 1 where we have the right to win Zero Harm Hardie Operating System Innovati
Slide 15: Executive Leadership Team (ELT)
Executive Leadership Team (ELT) CEO For personal use only Aaron Erter Chicago Chief HR President President CFO Officer (CHRO) North America APAC Rachel Wilson Farhaj Majeed Sean Gadd John Arneil Chicago Chicago Chicago Sydney President EVP Global Chief Information VP ESG/ Chief Europe Operations Off
Slide 16: US Housing Fundamentals Support Long-Term Growth
US Housing Fundamentals Support Long-Term Growth Repair & Remodel New Construction For personal use only Housing Stock Aging Into Cumulative Undersupply Prime Remodeling Years of US Housing ~ 35M ~ 2.1M ~35 Million Homes U.S. Housing is Currently Aged 20 to 40 Years Old1 Undersupplied by (Single-Fam
Slide 17: People Strategic Priorities
Building a Better For personal use only Future for All People Strategic Priorities FARHAJ MAJEED CHIEF HUMAN RESOURCES OFFICER JAMES HARDIE INVESTOR DAY 17 2024
Slide 18: People Strategic Priorities
People Strategic Priorities Building a Better Future for All TM by focusing on what we can control supported by our strategic foundations. For personal use only Strengthen the Foundation: Design an HR strategy to inform the future vision of HR, establish an operating model to build efficiency in ser
Slide 19: People Strategy: Core Pillars
People Strategy: Core Pillars Organizational Great Winning Agility Talent Culture For personal use only Strategic People Drivers Build an organization designed with Build a robust and sustainable Bring the James Hardie Purpose, James Hardie Strategy at its center talent pool enabled by a strong Visi
Slide 20: Activating Our Strategy: Organizational Agility
Activating Our Strategy: Organizational Agility Pillar Objective: Build an organization designed with James Hardie Strategy at its center and deliver HR functional excellence For personal use only Global Initiatives Job Architecture HR Transformation Functional Organization Design Establish a global
Slide 21: Activating Our Strategy: Great Talent
Activating Our Strategy: Great Talent Pillar Objective: Build a robust and sustainable talent pool enabled by a strong leadership and development capability For personal use only Global Initiatives Learning & Development Strategy: Talent Assessment and James Hardie University Grow@Hardie Development
Slide 22: Activating Our Strategy: Winning Culture
Activating Our Strategy: Winning Culture Pillar Objective: Bring the James Hardie Purpose, Vision, Mission and Values to life to enable and unlock our best For personal use only Global Initiatives Wellbeing Strategy Hardie Heartbeat DEIB ESPP Launch a global wellbeing strategy, Enhance survey to inc
Slide 23: Building a Better Future For All
Building a Better Future For All As we transform as an organization, bring our People Strategy to life, and embark on this journey of innovation and enhancement, we will drive success by maintaining: For personal use only “Purpose” Focused Holistic Participation Sustainable Progress Remain grounded
Slide 24: APAC
For personal use only APAC JOHN ARNEIL PRESIDENT APAC JAMES HARDIE INVESTOR DAY 24 2024
Slide 25: APAC Snapshot
APAC Snapshot Net Sales A $856 million John Arneil For personal use only +9% vs FY23 President APAC EBIT A $253 million +21% vs FY23 992 EMPLOYEES1 APAC Operating Sites: 3 | R&D Centers: 1 Manufacturing Facilities Research and Development ADJUSTED EBIT MARGIN (%) 29.5% 28.0% 28.0% 26.5% FY24 SEGMENT
Slide 26: APAC Strategic Priorities
APAC Strategic Priorities Building a Better Future for All TM by focusing on what we can control supported by our strategic foundations. For personal use only Profitable Share Gain: Defend and Grow our strong category share of core products in Single-Family New Construction, Multi-Family New Constru
Slide 27: Profitable Share Gain in ANZ
Profitable Share Gain in ANZ Defend and Grow our strong category share of core products in Single-Family New Construction, Multi-Family New Construction, and Alterations & Additions with an emphasis on leveraging our right to win and customer integration For personal use only ANZ Siding Opportunity1
Slide 28: Accelerate Material Conversion Through Demand Creation
Accelerate Material Conversion Through Demand Creation Homeowner Focused, Customer and Contractor Driven For personal use only Builder/ Customer Homeowners Contractor Brand of Choice Modern Cause Customer Trade Sponsorships & Forecast Marketing Marketing Marketing Influencers JAMES HARDIE INVESTOR D
Slide 29: Accelerate Material Conversion Through Co-Creation
Accelerate Material Conversion Through Co-Creation Stage Buy-In personal use only Align on growth plan with builder leadership and gain #1 stakeholder alignment Stage Where to Play & How to Win Co-Creation Process Identify consumer needs and design/construction #2 methodology to support Stage Collab
Slide 30: Accelerate Growth Against Masonry Via Product & Business Model Innovation
Accelerate Growth Against Masonry Via Product & Business Model Innovation For personal use only Hardie Fine Texture Cladding Stria Cladding Product Innovation Linea Weatherboard Axon Cladding Hardie Oblique Cladding Hardie Brushed Concrete Cladding JAMES HARDIE INVESTOR DAY 30 2024
Slide 31: Europe
For personal use only Europe CHRISTIAN CLAUS PRESIDENT EUROPE JAMES HARDIE INVESTOR DAY 31 2024
Slide 32: Europe Snapshot
Europe Snapshot Net Sales €445 million Christian Claus For personal use only +3% vs FY23 President Europe EBIT €42 million +65% vs FY23 1,043 EMPLOYEES1 EUROPE Operating Sites: 5 | R&D Centers: 1 Manufacturing Facilities Research and Development ADJUSTED EBIT MARGIN (%) 12.9% 10.4% 9.3% 5.8% FY24 SE
Slide 33: Europe Strategic Priorities
Europe Strategic Priorities Building a Better Future for All TM by focusing on what we can control supported by our strategic foundations. For personal use only Fiber Cement Growth: Build foundation for long-term high value product growth, namely panel, via our high quality, low-cost value propositi
Slide 34: Europe Siding & Interiors Opportunity
Europe Siding & Interiors Opportunity Build foundation for long-term high value product growth EU Siding & Interiors Opportunity1 Europe Siding & For personal use only €2.8Bn Interiors Opportunity 1,600 1,400 1,200 Fiber Cement Façade (High Value Product) ▪ Panel: Focus against Competitive Fiber EU€
Slide 35: Leveraging Our Value Proposition to Support Our Strategic Priorities
Leveraging Our Value Proposition to Support Our Strategic Priorities For personal use only Fiber Cement Value Proposition Fiber Gypsum Value Proposition FC Panel Therm25 Flooring ▪ Affordable, high-performance solution ▪ 100% Dry Solution ▪ Non-combustible ▪ Workable after 24hrs ▪ Low maintenance ba
Slide 36: Support Strategic Execution Through Demand Creation
Support Strategic Execution Through Demand Creation Customer, Builder, Contractor and Architect Focused For personal use only Builder/ Customer Architect Contractor Brand of Choice Lead Trade Contractor Architect Local Campaigns Marketing Events Events Campaigns JAMES HARDIE INVESTOR DAY 36 2024
Slide 37: North America
For personal use only North America SEAN GADD PRESIDENT NORTH AMERICA JAMES HARDIE INVESTOR DAY 37 2024
Slide 38: North America Snapshot
North America Snapshot Net Sales US $2.9 billion Sean Gadd For personal use only +4% vs FY23 President North America EBIT US $921 million +20% vs FY23 3,337 EMPLOYEES1 NORTH AMERICA Operating Sites: 11 | R&D Centers: 1 Manufacturing Facilities Research and Development ADJUSTED EBIT MARGIN (%) 31.9%
Slide 39: Products for all Components of the Home and Category Segments
Products for all Components of the Home and Category Segments Products and Home Coverage Products and Category Segments For personal use only Hardie® Trim Full Wrap Solution to Drive Material Conversion JAMES HARDIE INVESTOR DAY 39 2024
Slide 40: Value Proposition: Trusted Protection
Value Proposition: Trusted Protection For personal use only Fire Resistance1 Water Resistance Pest Damage Resistant Watch the Watch the Watch the Fire Demonstration video Dimensional Stability video Woodpecker Testimonial video 1. Hardie® siding complies with ASTM E136 as a noncombustible cladding a
Slide 41: Value Proposition: Personalized Design & Long-Lasting Beauty
Value Proposition: Personalized Design & Long-Lasting Beauty Personalized Design Long-Lasting Beauty For personal use only © 2023 Warner Bros. Discovery, Inc. or its subsidiaries and affiliates. All trademarks are the property of their respective owners. All rights reserved. JAMES HARDIE INVESTOR DA
Slide 42: US Siding Opportunity
US Siding Opportunity Accelerate growth in key end markets by driving material conversion. US Siding Opportunity1 For personal use only 12,000 ~$10Bn US Siding Opportunity ~10Bnsf 10,000 Volume - MMSF 8,000 6,000 ▪ Opportunity in R&R to win against vinyl and other 4,000 wood-look substrates 2,000 -
Slide 43: Consistent Fiber Cement Share Gains in New Construction
Consistent Fiber Cement Share Gains in New Construction Material Share of Primary Cladding1 Insights on 40 -12% New Construction Market For personal use only Vinyl Share Loss 35 ▪ Fiber Cement has Increased its Share 30 of Primary Cladding, Gaining Share from Vinyl, Brick and Wood 25 % of homes 20 F
Slide 44: North America Strategic Priorities
North America Strategic Priorities Building a Better Future for All TM by focusing on what we can control supported by our strategic foundations. For personal use only Repair & Remodel: Accelerate growth in key end markets, such as the Northeast and Midwest, by driving material conversion through fu
Slide 45: Repair & Remodel
Repair & Remodel Accelerate growth in key end markets, such as the Northeast and Midwest, by driving material conversion through full wrap solutions with contractors and homeowners against vinyl, and other competitive wood-look hard siding For personal use only Homeowner Demand Creation ▪ Superior C
Slide 46: New Construction
New Construction Deliver full wrap solutions to defend our robust position and grow share with national and regional single-family builders, through our aligned value chain with our customers and installers For personal use only Superior Value Proposition ▪ Product Portfolio: Right ▪ Trusted Product
Slide 47: Accelerate Profitable Share Gain Through Demand Creation
Accelerate Profitable Share Gain Through Demand Creation Homeowner Focused, Customer and Contractor Driven For personal use only Builder/ Customer Homeowners Contractor Brand of Choice National Cause Homeowner Trade Local Advertising Marketing Marketing Marketing Marketing Texas Tough JAMES HARDIE I
Slide 48: Industry Leading Investment
Industry Leading Investment For personal use only JamesHardie.com MASS-MEDIA TARGETED MEDIA SEARCH VISUALIZATION SOCIAL Industry Leading Demand Creation JAMES HARDIE INVESTOR DAY NFL and the NFL shield design are registered trademarks of the National Football League. 48 2024
Slide 49: Enhanced Approach to Consistently Drive 4%+ PDG
Enhanced Approach to Consistently Drive 4%+ PDG Driving Demand Through James Hardie Brand Strength For personal use only Accelerate Profitable Share Gain Through Demand Creation Homeowner Focused, Customer and Contractor Driven Marketing for Growth Builder/ Customer Homeowners Contractor National Ca
Slide 50: Accelerate Profitable Share Gain Through Demand Creation
Accelerate Profitable Share Gain Through Demand Creation Homeowner Focused, Customer and Contractor Driven For personal use only Builder/ Customer Homeowners Contractor Best-In-Class Best-In-Class Demand Creation Superior Long- Demand Creation and Local Marketing Support Lasting Beauty Premium Brand
Slide 51: Day One Wrap-Up
For personal use only Day One Wrap-Up AARON ERTER CHIEF EXECUTIVE OFFICER JAMES HARDIE INVESTOR DAY 51 2024
Slide 52: The James Hardie Strategy
The James Hardie Strategy Homeowner Focused, Customer and Contractor Driven For personal use only Strategic Supported by Our Enabled by Initiatives Foundational Imperatives Profitably grow and take share Customer Integration 1 where we have the right to win Zero Harm Hardie Operating System Innovati
Slide 53: US Housing Fundamentals Support Long-Term Growth
US Housing Fundamentals Support Long-Term Growth Repair & Remodel New Construction For personal use only Housing Stock Aging Into Cumulative Undersupply Prime Remodeling Years of US Housing ~ 35M ~ 2.1M ~35 Million Homes U.S. Housing is Currently Aged 20 to 40 Years Old1 Undersupplied by (Single-Fam
Slide 54: Day One Q&A
For personal use only Day One Q&A AARON ERTER CHIEF EXECUTIVE OFFICER JAMES HARDIE INVESTOR DAY 54 2024
Slide 55: Thank You!
For personal use only Thank You! JAMES HARDIE INVESTOR DAY 55 2024
Slide 56: Non-GAAP Financial Measures
Non-GAAP Financial Measures Financial Measures – GAAP Equivalents This document contains the financial statement line item EBIT, which is considered to be non-GAAP, but is consistent with the term used by Australian companies. Because we prepare our consolidated financial statements under GAAP, the
Slide 57: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Information Derived from GAAP Measures Adjusted EBIT For personal use only US$ Millions FY24 FY23 EBIT $ 767.4 $ 741.4 Asbestos: Asbestos adjustments loss 151.7 37.0 AICF SG&A expenses 1.6 1.4 Asset Impairment - greenfield site 20.1 - Adjusted EBIT $ 94
Slide 58: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Information Derived from GAAP Measures Asia Pacific Segment Adjusted EBIT and EBIT Margin For personal use only A$ Millions FY24 FY23 FY22 FY21 Asia Pacific Fiber Cement Segment EBIT A$ 252.7 A$ 208.8 A$ 217.4 A$ 172.4 Restructuring expenses - - - 4.9 A