James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Non-Deal Roadshow (September 2012)
18 slides from James Hardie Industries's roadshow presentation, Sep 12, 2012
Slide 1: Manufacturing
Manufacturing Dave Kessner – Vice President Manufacturing Kevin Yelle – Director Manufacturing Support Chris Davis – Fontana Plant/Project Manager Investor/Analyst USA Tour – 10 & 11 September 212 Exhibit 99.2
Slide 2: Agenda
– Learning – Go forward AGENDA Fiber Cement History/Evolution – David Kessner Capacity – Kevin Yelle Fontana – Chris Davis
Slide 3: Dave Kessner – Manufacturing Overview
Dave Kessner – Manufacturing Overview
Slide 4: Long Term Evolution
1990: Started with 4 tubs x 4 feet wide sheet machines - Interleavers - Finishing - No Coating - Coatings – Systems developed for sheet machine/finishing 2005: Moved to 9 tubs x 5 feet wide sheet machines LONG TERM EVOLUTION Low throughput (evolved from 40 mmsf to 90 mmsf) Manual Handling Higher thr
Slide 5: Operational Philosophy 1990–2006
1990 – 2006 OPERATIONAL PHILOSOPHY Throughput focused Product mix (primarily textured plank) Engineering driven Single sourced specialty products Supply constrained
Slide 6: Operational Philosophy 2007–2011 (Housing Market Downturn)
2007 – 2011 (Housing Market Downturn) - Downsized plants - Treat all costs (except depreciation, tax and insurance) as variable - Minimize waste - Cost per hour * Scalable, linear - Lowest delivered cash cost to market - Compressible spend per unit remained relatively flat - Developed better model f
Slide 7: Operational Philosophy 2011–Present
2011 – Present - Smooth - Thickness - Edge details - Precision cut - Packaging (job packs) - HardieTrim ® * East Coast * West Coast - HardieBacker ® * SE Capability - HardiePlank ® * HZ10 Plant with HZ5 flexibility OPERATIONAL PHILOSOPHY Product mix shift Regional sourcing – West, Central and East
Slide 8: Operational Philosophy 2012 and Beyond
2012 and Beyond - Higher utilization of existing capacity * Duration vs. frequency of delay * Planned stops * Prepare for long continuous runs - Maintenance / Production * Working off same game plan * Break work into smaller pieces OPERATIONAL PHILOSOPHY Peru Project
Slide 9: Machine Operations: Sheet Machine Delay
30% reduction MACHINE OPERATIONS Sheet Machine Delay
Slide 10: Kevin Yelle – Capacity
Kevin Yelle – Capacity
Slide 11: Capacity ahead of demand
Capacity ahead of demand CAPACITY: 2012 – 2015 Ramp up “flex capacity” Brownfield restart capacity Greenfield capacity
Slide 12: Ramp Up Flex Capacity
Ramp Up Flex Capacity CAPACITY: 2012 – 2015 Increase run time on operational lines Restart idled lines in operational facilities – Example: Waxahachie sheet machine #1
Slide 13: Brownfield Startups
* East Coast HardieTrim ® * South East HardieBacker ® CAPACITY: 2012 – 2015 Use regional supply/demand model to determine which plants/when Fontana, CA options Summerville, SC options Provide additional flexibility Support regional product mix concept Examples Brownfield Startups
Slide 14: Greenfield Plants
Greenfield Plants CAPACITY: 2012 – 2015 Use model to determine where and when North options Midsouth options Pacific Northwest options
Slide 15: Chris Davis – Fontana
Chris Davis – Fontana
Slide 16: Fontana 1990–2007
1990 – 2007 FONTANA Roofing HardieBacker ® , HardiePanel ® and HardiePlank ® support for out of market geographies Manual handling Inputs high – utilities, labor, raw materials
Slide 17: Fontana: 2014 and Forward
Be competitive in local market Natural West Coast backer market, panel supplier for West Coast Lead the business in low headcount operations * Multi skilled workforce * Automation * Culture of continuous improvement & work elimination R&D Development Plant Experiment with operational models Leverage
Slide 18: Questions
Questions
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