James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (September 2019)
21 slides from James Hardie Industries's investor presentation, Sep 16, 2019
Slide 1: Sustainable and Profitable Growth Above Market
Exhibit 99.1 Sustainable and Profitable Growth Above Market Jack Truong, CEO 1
Slide 2: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Management Presentation contains forward-looking statements. James Hardie Industries plc (the “Company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission,
Slide 3: Cautionary Note on Forward-Looking Statements (continued)
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS (continued) Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are i
Slide 4: We Are an Organic Growth Company with Global Reach
We Are an Organic Growth Company with Global Reach… EUROPE Net Sales $368MM EBIT $10MM EBIT % 2.7% # Employees 1,000 EBIT included Integration costs ASIA PACIFIC NORTH AMERICA Net Sales $447MM Net Sales $1,677MM EBIT $100MM EBIT $388MM EBIT % 22.3% EBIT % 23.1% # Employees 1,100 # Employees 2,700 FY
Slide 5: With a Broad Portfolio of Products & Brands
…with a Broad Portfolio of Products & Brands PRODUCT PLATFORMS Trim / Tile Commercial Siding Soffit Flooring Interior Walls Fiber Gypsum Fascia Backerboard Exteriors PORTFOLIO OF BRANDS 5
Slide 6: Our Products Offer Design Flexibility
Our Products Offer Design Flexibility… …from traditional to luxury homes to commercial buildings …from the desert to coastal areas in varying climates MID-CENTURY MODERN MULTI-FAMILY CONTEMPORARY LUXURY RURAL COASTAL MOUNTAINS COMMERCIAL 6
Slide 7: Our Global Manufacturing Footprint is Strategically Located
Our Global Manufacturing Footprint is Strategically Located 7
Slide 8: We Deliver Strong Value Propositions to Our Customers
We Deliver Strong Value Propositions to Our Customers 8
Slide 9: We Have Clear Objectives for Long Term Value Creation
We Have Clear Objectives for Long Term Value Creation Growth Above Market with Strong Returns EUROPE BILLION EBIT €1REVENUE with 20% MARGIN NORTH AMERICA EBIT 35/90 with 20-25% MARGIN ASIA PACIFIC DELIVER EBIT GROWTH with 20-25% MARGIN 9 ABOVE MARKET
Slide 10: We Are Transforming to Continue Our Profitable Growth Journey
We Are Transforming to Continue Our Profitable Growth Journey FROM: TO: Big, SMALL Company Small, BIG Company • Leverage for scale • Standardize processes for global best practice replication • Continuous improvement mindset 10
Slide 11: North America Commercial: From Pull to Push-Pull
North America Commercial: FROM Pull TO Push-Pull Builders Distributors JH & Dealers R&R Contractors • Analytics • Supply Chain Integration • Ease of Doing Business • Win-Win Approach • Demand Creation • Installation Training • End-user Marketing • Right Products for Right Segments 11
Slide 12: Operations: From World's Best Fiber Cement Producer to World Class Manufacturer via LEAN
Operations: FROM World’s Best Fiber Cement Producer… …TO World Class Manufacturer via LEAN It is all about fostering employees engagement while making our operations more predictable and with less variation 3-Year Cumulative Lean Cost Reduction North America $100 MM Asia Pacific $19 MM Europe $20 MM
Slide 13: North America Interior Business: Focus on Executing Fundamentals
North America Interior Business: Focus on Executing Fundamentals Placement Clear Packaging In Building Materials Section New Products Organization Waterproof Focus on Account Management Backer Board New Sales Leadership 13
Slide 14: Innovation: Leverage Our Global Research & Development Capabilities
Innovation: Leverage Our Global Research & Development Capabilities 10% employees 40% employees 50% employees Over 130 Global R&D Employees with World Class Expertise in: • High performance fiber cement and fiber gypsum formulations • Durable surface coatings & textured surfaces 14 • Ultra high thro
Slide 15: James Hardie Fiber Cement Substrate Generations
James Hardie Fiber Cement Substrate Generations 1st James Hardie Invents Fiber Cement 2nd Primer Added 3rd Substrate Composition Other Fiber Cement Manufacturers Only Meet Our 3rd Generation 4th Surface Adhesion Technology 5th ColorPlus® Technology 6th Modified Thickness Technology We Own 650 7th En
Slide 16: Customer Insights to Innovation Process
Customer Insights to Innovation Process to Deliver… …High Impact New Products Mega Customer Winning Trends Insights Product Concepts Stage Gates CONCEPT PRODUCT DISCOVERY SCALE UP LAUNCH FEASIBILITY DEVELOPMENT Urbanization Prioritization Product Commercialization Development 16
Slide 17: FY20 Global New Products
FY20 Global New Products The Aspyre HardieSoffit® HardieBacker® Collection by Artisan® Geter Boece ety Hardie HardiePlank® James VentedPlus™ | shingle Siding HydroDefense™ | Windbreaker™ VL 5 Panels Hardie Technology a 17 (>) JamesHardie
Slide 18: Europe: €1B Revenue at 20% EBIT Margin by FY2029
EUROPE: €1B Revenue at 20% EBIT Margin by FY2029 Growth Pathway €1B European Manufacturing Footprint New Fiber Cement Existing Fiber Cement €320MM Fiber Gypsum Unlocking Plant Capacity to Improve Margin + ~200-300 bps margin improvement + ~200 bps margin improvement 18
Slide 19: APAC: 3-5% Growth Above Market at 20-25% EBIT Margin
APAC: 3-5% Growth Above Market at 20-25% EBIT Margin FROM: TO: Consumer Survey: Cladding Preference (June 2018, n = 6,500, JH Insights) 19
Slide 20: Transforming How We Execute to Deliver Sustainable, Profitable Growth
Transforming HOW We Execute to Deliver Sustainable, Profitable Growth FROM TO • Leading with Clarity of Direction Managing Top Down • Empowerment & Accountability Working Cross Functionally With Working in Silos Clear Alignment Regionally Focused Global Business with Best Practice Businesses Sharing
Slide 21: James Hardie Sustainability Highlights
James Hardie Sustainability Highlights Zero to Landfill Zero Harm Culture Manufacturing process produces zero landfill waste Commitment to providing a safe and healthy in Fiber Gypsum Plants working environment for every individual (employee, vendor, and visitor) 100% Recycled Fibers 100% of fibers
James Hardie Industries — Investor Presentation (September 2019) on 6ix