James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2018)
12 slides from James Hardie Industries's investor day presentation, Sep 20, 2018
Slide 1: Interiors - Sean Gadd
Exhibit 99.9 • Xxx • Xxx Interiors Sean Gadd
Slide 2: James Hardie Interiors agenda
JAMES HARDIE INTERIORS • Interiors overview • Competitive set • How we compete • Emerging trends • Growth path forward PAGE 2
Slide 3: Tile Underlay Overview
TILE UNDERLAY OVERVIEW • Tile underlayment is installed under tile in wet areas and can be rigid or non-rigid • Backer board (a rigid tile underlayment) provides a solid foundation upon which to install the tile and protects the subfloor from moisture and mold • Tile underlayment is most commonly in
Slide 4: Tile Underlayment Overview
TILE UNDERLAYMENT OVERVIEW Underlayment Technology (Estimated Volume) • Total tile underlayment market Foam / MgO is estimated at ~1.1bsqft Foam / MgO Non rigid Mats Glass Mat Gypsum Glass Mat Gypsum Fiber Gypsum, • Market for floor underlayment is in slight decline Glass Mesh Fiber Gypsum Glass Mes
Slide 5: Historic Interiors Performance
HISTORIC INTERIORS PERFORMANCE Average Selling Price Market Share % 60% 600 50% 550 40% 30% 500 20% 450 10% 400 0% FY16 FY17 FY18 FY19 YTD FY16 FY17 FY18 FY19 YTD 1/4" ASP 1/2" ASP 1/4" Mkt Share 1/2" Mkt Share Estimated market share stable since FY15 ... average selling price accretion PAGE 5
Slide 6: Competitive Overview
COMPETITIVE OVERVIEW Description Performance Gap vs. Example Brands HardieBacker Fiber Cement Cement board with 90% Portland cement and sand Glass mesh Cement board wrapped in • Crumbles, messy when cut USG – Durock cement fiberglass mesh • Not as stiff or strong National Gypsum - Permabase Rigid Gy
Slide 7: Value Proposition – Rigid Tile Underlayment
VALUE PROPOSITION – RIGID TILE UNDERLAYMENT • HardieBacker® is the market leader in rigid tile underlayment, >95% category share in fiber cement • Strongest rigid tile underlayment on the market • Superior tile adhesion • Uniform composition • Highest compressive strength • Easy no mess cutting •
Slide 8: Interiors Channel Split – Rigid Tile Underlayment
INTERIORS CHANNEL SPLIT – RIGID TILE UNDERLAYMENT % of Rigid Example Companies Primary Customer Underlayment DIY, remodeling Big Box Retail ~60% contractor, JOAT Retail Pro-Tile ~20% Tile contractors Gypsum ~10% Drywall contractors Pro GCs, custom Lumber ~10% builders Source: Catalina Research, NAHB
Slide 9: Material Trends Impacting Tile Underlayment
MATERIAL TRENDS IMPACTING TILE UNDERLAYMENT • Resilient flooring is a term that refers to floor coverings that occupy a middle ground between soft floors and hard floors. • Resilient flooring and more specific luxury vinyl tile (LVT) requires no underlayment when installed Industry Market Share - 20
Slide 10: Grow Market Share in Rigid Underlayment
GROW MARKET SHARE IN RIGID UNDERLAYMENT 1 • Continue to educate contractors on the value proposition and points of differentiation Share of Wall Capture • Drive end user conversion to HardieBacker ® from other technologies 2 • Maintain high level of engagement in retail channel, driving brand Channe
Slide 11: Summary
SUMMARY • Resilient flooring, which does not require a tile underlayment, is growing and is starting to reduce the addressable market for flooring tile underlayment • James Hardie has strong market share in ¼” backer – used on the floor • Opportunity to move contractors still using ½” gypsum on the
Slide 12: Q&A
• Xxx • Xxx Q&A
James Hardie Industries — Investor Day (September 2018) on 6ix