James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2018)
24 slides from James Hardie Industries's investor day presentation, Sep 20, 2018
Slide 1: James Hardie Europe
Exhibit 99.11 • Xxx • Xxx JAMES HARDIE EUROPE Jack Truong
Slide 2: James Hardie Europe: Profitable Growth
JAMES HARDIE EUROPE: PROFITABLE GROWTH • Fiber Gypsum business has very good upside growth potential • Leverage fermacell market access and customer intimacy to deliver initial phase of Fiber Cement growth • Focus on strategic innovation based on European building preferences to deliver transformati
Slide 3: fermacell Has Consistent Track Record of Growth
FERMACELL HAS CONSISTENT TRACK RECORD OF GROWTH Pre-Acquisition: (pro-forma fermacell + former JH Europe) Post-Acquisition Revenue (€m) FY Q1 FY 2019: +8% revenue growth in € vs. pcp 11.9% Adj EBIT Margin Source: JH internal PAGE 3
Slide 4: Step-Change, Profitable Growth
STEP-CHANGE, PROFITABLE GROWTH Growth Ambition: 1 Billion Euro Business within 10 years New Fiber Cement Fiber Cement based on JH Global portfolio Fiber Gypsum Cement Boards FY18 FY29 Source: JH internal PAGE 4
Slide 5: Growth of Fiber Gypsum Business
GROWTH OF FIBER GYPSUM BUSINESS PAGE 5
Slide 6: Significant Growth Potential for Fiber Gypsum
SIGNIFICANT GROWTH POTENTIAL FOR FIBER GYPSUM Fiber Gypsum James Hardie European gypsum board market (in m²m) FGshare share JHEUshare shares 82% Growth potential 264264 1% #1 66% Growth potential 258 258 8% 85%#1 84% Growth potential 177 177 2% 91%#1 71% Growth potential36 36 9% #1 89% Growth potent
Slide 7: Growth in Residential, Timber Frame Homes
GROWTH IN RESIDENTIAL,TIMBER FRAME HOMES Where to Strong position: Germany, play? Switzerland, Austria Growth opportunities: UK, Nordics, Germany Key trends: • Increased share of pre-fabricated homes • Increased multi-story family homes New timber frame home in Hameln, Germany • Lightweight construc
Slide 8: Growth in Commercial Buildings
GROWTH IN COMMERCIAL BUILDINGS Where to Strong position: Germany, play? Denmark Growth opportunities: UK, France, Sweden, Italy, Spain Key trends: • Increased technical requirements (esp. fire protection) School, Aarhus, Denmark How to • Technical presale to architects, win? general contractors, and
Slide 9: Case Study: Hotel Projects
CASE STUDY: HOTEL PROJECTS Fiber gypsum meets acoustic reduction and impact resistance requirements while increasing usable space Benefits: Benefits: +32 rooms vs. plan Optimal space usage All regulations met Sound requirements with one layer of met with only one fiber gypsum layer of fiber
Slide 10: Repair and Remodel Growth Through Dealer Coverage
REPAIR AND REMODEL GROWTH THROUGH DEALER COVERAGE Where to Strong position: Very high Delivery points play? dealer coverage in key markets Key trends: • Do it for me instead of DIY • Growing cities How to • Leverage on strong win? fermacell brand • Digital marketing (one-to- many communication) Sour
Slide 11: Unlocking Current Fiber Gypsum Plant Capacity
UNLOCKING CURRENT FIBER GYPSUM PLANT CAPACITY * Opportunity to leverage on James Hardie manufacturing know-how to unlock additional capacity * Potential to improve fiber gypsum margins in 2-3 years ++++ margin improvements** Operations footprint Target 2 ++ margin improvements** Target 1 Net Product
Slide 12: Growth of Fiber Cement Business
GROWTH OF FIBER CEMENT BUSINESS PAGE 12
Slide 13: Step Change Growth in Fiber Cement
STEP CHANGE GROWTH IN FIBER CEMENT Two growth levers JH Europe competitive advantage 1 Grow in timber frame markets • Access timber frame and R&R channel • Renovation and remodel: market through fermacell residential and commercial • Leverage initial solutions from James • New home construction Hard
Slide 14: Coverage in Key Markets
COVERAGE IN KEY MARKETS Market coverage … … enables Fiber Cement penetration in timber frame segment Strong James Hardie coverage Strong fermacell coverage 100% Developing fermacell coverage 80% Nordics 60% 40% Austria Share of timber frame timberof Share 20% Switzerland UK Italy Benelux Germany Fra
Slide 15: Growth in Timber Frame Segment in Northern Europe
GROWTH IN TIMBER FRAME SEGMENT IN NORTHERN EUROPE • Northern Europe construction has high percentage of timber frame construction and cladding • Consistent construction approach across segments – R&R, single-family, multi-family • ‘Designed for climate’ needs – construction and long-term performance
Slide 16: Growth in Timber Frame Segment in Central Europe
GROWTH IN TIMBER FRAME SEGMENT IN CENTRAL EUROPE • Timber frame segment is strong in Central Europe – southern Germany, Switzerland, Austria, and eastern France • Scalable technology transfer as platform for growth • Broad base solutions – facades, functional linings, floors Austria and Swiss market
Slide 17: Growth in Masonry Markets Across Europe
GROWTH IN MASONRY MARKETS ACROSS EUROPE • Masonry is strong in many geographies – UK, northern Germany, western France, Benelux • Finish on masonry - 40% render/stucco, 40% brick/concrete, 20% lightweight • Market development focus • Single-family – Second story new and renovation • Multi-family – M
Slide 18: Leveraging fermacell Market Access and Customer Intimacy
LEVERAGING FERMACELL MARKET ACCESS AND CUSTOMER INTIMACY TO GROW JAMES HARDIE FIBER CEMENT BUSINESS Market access, regional building preferences Strong fermacell brand and logistics network Synergies in new construction channel and R&R Joint sales: fiber cement and fiber gypsum products Lo
Slide 19: James Hardie Europe: Profitable Growth
JAMES HARDIE EUROPE: PROFITABLE GROWTH • Fiber Gypsum business has very good upside growth potential • Leverage fermacell market access and customer intimacy to deliver initial phase of Fiber Cement growth • Focus on strategic innovation based on European building preferences to deliver transformati
Slide 20: President and COO
HI/MUTITL PRESIDENT AND COO
Slide 21: Global Strategy Remains Unchanged
GLOBAL STRATEGY REMAINS UNCHANGED We are an Organic Growth Company • North America: 35/90 • Exteriors volume growth above market with 20-25% EBIT margin • Europe: Create a €1 billion business with Hardie like returns within the next 10 years • APAC: Deliver organic growth above the market with stron
Slide 22: Strengthen the Core and Grow Some More
STRENGTHEN THE CORE……AND GROW SOME MORE CURRENTLY OPPORTUNITIES Strong leadership team Build organizational capabilities, depth Talented employees, globally of talent and leadership Best practice sharing Manufacturing plants with high A network of high throughput throughput and lowest unit cost manu
Slide 23: Short Term Focus
SHORT TERM FOCUS • Employee engagement • Management system to improve predictability and reduce variability in our business and operations • Integrated, global strategic plan PAGE 23
Slide 24: Q&A
• Xxx • Xxx Q&A
James Hardie Industries — Investor Day (September 2018) on 6ix