James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Goldman Sachs JBWere Conference 2007
16 slides from James Hardie Industries's conference presentation, Mar 8, 2007
Slide 1: James Hardie - Goldman Sachs JBWere Conference, March 2007
oO James Hardie Goldman Sachs JBWere Conference New York March 2007 customevily used by i alban tostns fot a Adjustments 10 astestos pravisionr. Uaioss otfisrwise stated. cesults 210 for Gontinving epesations only. ln this Management Presentation, James Hardie may prosord the Rinevicial moususes, sa
Slide 2: Growth focused, sustainable competitive advantage
4 @® James Hardie « Growth focused « Sustainable competitive advantage « Unique proprietary technology « Strong financial performance, cash flows and balance sheet* « Track record of outperforming US housing market * Excluding asbestos provision ® James Hardie Superior Durability
Slide 3: Strategy and Sustainable Competitive Advantage
: @® James Hardie : eas industry L: Strategy « Aggressively grow primary demand for fiber cement « Secure differentiated position « Generate strong top line growth « Win high shares of large segments ® Sustain attractive margins ® James Hardie Unique Tec Sustainable Competitive Advantage * Unique pl
Slide 4: FY2006 Sales, EBIT and Assets by Business; USA Fiber Cement
~) James Hardie Total FY 2006' Identifiable Sales EBIT** Assets* USA Fiber Cement Established high growth/high 79% 82% 95% return Asia Pacific Fiber Cement Established high return 16% 16% 12% Other Potential growth opportunities 5% 2% (7%)? (Pipes, Europe) "Al aad far the liscat yoar aréed 31 March
Slide 5: Fiber Cement is more durable than wood and engineered wood
4 @® James Hardie Fiber Cement is more durable than wood and engineered wood Fiber Cement Superior Durability Moisture Resistant Engineered Wood Fire Resistant Weather Resistant Termite Proof Resists Warping Resists Cracking Resists Rotting Holds Paint Longer USA Fiber Cement as P s ; 4 @ James Hard
Slide 6: Continuing to increase share of siding sales
@® James Hardie Continuing to increase share of siding sales 28 Estimated terminal share 35% 7 6 z 120 + 3 » SB ool 404 14.2 § % 10.4 sesvieegaonrnsnaeeenetnn tL o4s 2 o4 uapavosn 2 a? cecetesonsaoieee in 2 er ae tas 3 18h geome r é& & 5 2% + 7 g Ps 3 10f 3% 1036 ao o 75% q + 3 a + 1 oY + + 4 + A CY
Slide 7: Interior products and North American plant capacity
@® James Hardie ‘a Interior ‘e" Volume Growth Product Lite Cycle Growth by Product » Primary product (1/4”) still growing at healthy pace. 14" Volume Growth » ¥%" product growing even faster U.S. BackerBoard Market 1.14 BSF 1,07 8SF Market Share » Growth fuelled by strong market and stronger JHBP pe
Slide 8: Production Capacity Per Line
PRODUCTION CAPACITY PER LINE $US/SF USA Fiber Cement CAPITAL COST PER UNIT OF CAPACITY wssisr) FYOt FY96 FYS7 FYSE FYB0 FYDD FYDt FYOZ YES FYOS Fras FYO7 2,000 1.800 C Interiors North 1,000 © West @ South S00 FYo2 FYG FYOs FYOS FYOB JHBP USA - Total Business Mix FYO6 Volume = 2.1bsf interiors.
Slide 9: Divisions - Southern, Western and Northern
® James Hardie USA Fiber Cement Divisions — (continued) Southern and Western Divisions # High builder penetration « High brand awareness « Primary growth positioned around wood, brick and stucco conversions « Expansion into rural markets ¢ Significant opportunity in R&R segment # Incremental revenue
Slide 10: ColorPlus higher quality products with higher revenue stream
@® James Hardie « Higher quality products with higher revenue stream « Strategy designed to reduce ‘on the wall’ cost and close gap with vinyl siding » Supply of pre-painted exterior products » Reduce supply chain costs * Installer education « Channel increases revenue base and gains § incremental v
Slide 11: Average net sales price and top-line growth
US$ / mmsf 3 o 4 @® James Hardie FF pili. eps j Average Net Sale Average price growth driven by mix and price increases oe een 420 4 400 4 380 5 360 r + r r + r r 1 FYOO FYO1 FYO2 FYO3 FYO4 FYOS FYO6 mths FYO7 USA Fiber Cement 2 f Starts (00's Lintts} Volume (mmsf) @® James Hardie ot Aly USA Fiber C
Slide 12: EBIT and EBIT Margin
@® James Hardie in* EBIT and EBIT Margin EBIT mum EBITISales 120 5 ith: r 36 x = z 3 ic} 5 ag 2 < & = ® be Ww = oO wu FYO1 FYO2 FY03 FYO4 FYO5S FYO6 YTD FYO?7 “Excludes restructuring and other operating axporisos of 17S512.6 milion in Q9 #Y02 23 a] is Growth in Revenue Per Employee USS $552 $aog $32
Slide 13: New Housing Construction Downturn; Asia Pacific Fiber Cement
New Housing Construction Downturn > « Key sales determinants » Level of new housing construction activity » Level of repair and remodeling activity « Market development program effectiveness « Price improvement « New housing 70% of USA Fiber Cement sales (repair and remodel 30%) » Business model adj
Slide 14: Long Term Financial Targets
. @® James Hardie Long Term Financial Targe Ss High Growth and Attractive Returns Targeted Target’ 9 Mths Actual Actual Actual FY07 FY06 FYO5 FY04 Revenue Growth > 15% p.a. 8% 23% 23% 25% EBIT Margin > 15% pa 22%* 21%* 19%* 18% Return on Capital >15%p.a 29%" 32%* 24% 23% Employed 1 Long terre Large
Slide 15: Summary and definitions
« We have a strong, weil established, growth focused and high return business « We have a sustainable competitive advantage « Our model for continued strorig growth is based ori: » Large market opportunity » Superior value proposition * Proprietary and/or protected technology « Upsides due to curren
Slide 16: Non-US GAAP Financial Measures
NON-US GAAP FINANCIAL MEASURES EBIT and EBIT margin excluding asbestos provision, SCI and other related expense, and impairment of roofine plant - EBIT anc EBIT margin excluding asbestos provision, SCI and other related expense, and impairment of rating plant are not measures of financial performanc
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