James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Hardie James Industries — Corporate Update (October 2003)
14 slides from James Hardie Industries's corporate update, Oct 30, 2003
Slide 1: James Hardie October 2003
Exhibit 99.4 James Hardie 30 October 2003
Slide 2: Overview
Overview Establishment of Foundation - Recap Background Structure Assets Benefits for claimants Benefits for shareholders Foundation developments Foundation statement Foundation funding largely intact Establishment was fair, legitimate and transparent JHI NV's legal and financial position unchanged
Slide 3: Background
Establishment of Foundation - Recap Background Established in February 2001 to: Compensate people injured by asbestos from former group subsidiaries Fund medical research aimed at finding cures Completely independent, non profit organisation with its own board and management Established with assets
Slide 4: Structure
Establishment of Foundation - Recap Structure Foundation controls two former subsidiaries of the former parent company, AMABA and AMACA, that manufactured asbestos All shares in AMABA and AMACA were vested to Foundation Assets in AMABA and AMACA totalled A$296 million including A$90m above net asset
Slide 5: Assets
Establishment of Foundation - Recap Assets Established with assets of A$296 million to meet legitimate asbestos related claims on AMABA and AMACA Investment income from assets would enable total claims payments to significantly exceed A$296 million Independent advice was provided by specialists incl
Slide 6: Benefits for Claimants
Establishment of Foundation - Recap Benefits for Claimants Greater certainty Foundation focussed on compensation Anticipated future claims were expected to be met Foundation has irrevocable rights to the assets Assets not to be used for other purposes ahead of claims Right of claimants to sue were u
Slide 7: Benefits for Shareholders
Establishment of Foundation - Recap Benefits for Shareholders Greater certainty Asbestos costs no longer impact P&L No future asbestos provision required Nature and extent of liability is clarified Management focus entirely on core business Investor focus entirely on core business Increased attracti
Slide 8: Foundation Developments
Foundation Developments Impact of AASB 1044 Requirement for AMACA and AMABA to disclose actuarial assessment of estimated contingent asbestos liability It is understood that AMABA and AMACA accounts show a shortfall in assets available to meet estimated contingent liability Disclosing contingent lia
Slide 9: Foundation Statement
Foundation Statement Foundation claims existing funding could be exhausted within 5 years Foundation unsuccessfully sought additional funding from James Hardie to meet expected liabilities Foundation is investigating a range of legal options involving James Hardie or related entities to ensure compe
Slide 10: Foundation Funding Largely Intact
Foundation Funding Largely Intact Clearly there is no funding shortfall today. The Foundation's net worth is close to what it was at time of establishment It will receive $130 million from agreed schedule of indemnity payments and insurance settlements - this is on top of its cash and investments Al
Slide 11: Establishment was fair, legitimate & transparent
Establishment was fair, legitimate & transparent Former parent company board took expert advice in determining funds provided Best information available was used Income assumptions were low end of 10 year historical performance Extensive consultation with acknowledged experts and interested parties
Slide 12: James Hardie's Legal and Financial Position Unchanged
James Hardie's Legal and Financial Position Unchanged There was no parent company liability for AMACA and AMABA before or after the establishment of the Foundation, or before or after the restructure There is no basis for legal action by the Foundation against JHI NV or any related entity James Hard
Slide 13: A Wider Issue
A Wider Issue Actuarial cost estimates adopted in AMACA and AMABA accounts show a dramatic departure from many years of consistent and stable actuarial estimates of future claim costs It is difficult to contemplate any basis for such a change but a substantial departure would indicate a wider issue
Slide 14: Disclaimer
Disclaimer This presentation contains forward-looking statements. Words such as "believe,'' "anticipate,'' "plan,'' "expect,'' "intend,'' "target,'' "estimate,'' "project,'' "predict,'' "forecast,'' "guideline,'' "should,'' "aim'' and similar expressions are intended to identify forward-looking stat
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