James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (June 2015)
18 slides from James Hardie Industries's investor day presentation, Jun 19, 2015
Slide 1: Investor Presentation: Australian Investor Day
For personal use only INVESTOR PRESENTATION Australian Investor Day 19 JUNE 2015
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER For personal use only FORWARD-LOOKING STATEMENTS This Investor 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
Slide 3: Disclaimer (continued)
DISCLAIMER (continued) For personal use only 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 intended to id
Slide 4: Agenda
AGENDA For personal use only James Hardie - Australian context Australian market overview Our performance Our focus Growth investment PAGE 4
Slide 5: The Australian business in context
The Australian business in context For personal use only ² EBIT excludes asbestos,non-recurring stamp duty and New Zealand weathertightness claims PAGE 5 5
Slide 6: We operate in the Australian building and construction market
We operate in the Australian building and construction market, with focus on buildings where people live and work For personal use only Renovation Mixed Commercial Detached Attached Medium density PAGE 6
Slide 7: Broad market access through our distribution channel
We have broad market access through our distribution channel, with propositions targeted to key end user segments For personal use only Australian Fibre Cement Market Commercial A&A builder Suppliers & major Channel End user segments players Small- Volume medium builders builder Medium density PAGE
Slide 8: Australian building market in a favourable phase of the cycle
The Australian building and construction market is in a favourable phase of the cycle from a James Hardie perspective For personal use only FY15 relative to FY14 (YOY change) addressable market Detached residential +17% starts Medium density residential +6% starts High density residential +33% start
Slide 9: Structural change occurring in the built form
Structural change is occurring in the built form, driven by employment opportunity and lifestyle choices For personal use only “Cities are shaped by where people live, where they work, and how they get around.” Jane-Frances Kelly and Peter Mares, Grattan Institute Percentage of jobs that can be reac
Slide 10: Urban design and built form solutions for higher density living
A range of urban design and built form solutions are emerging to create good quality higher density living For personal use only 100 people per hectare 250 people per hectare 300 people per hectare Source: Urban Taskforce. An increasing range of housing solutions is being delivered to the market to
Slide 11: Increasing density changes building material requirements
Increasing density leads to a change to the building material requirements For personal use only A change in construction starts… Impacts addressable external wall area 200,000 Insights 35,0 00 180,000 Adressable Area (SQM,000's) Number of Starts 58,844 -4% 160,000 30,0 00 30,381 • Over the past dec
Slide 12: Long run performance well above market
Our long run performance is well above market, in line with a structural shift in demand JH Top Line Growth For personal use only Top line growth Local Top Line Growth, rolling 12 months 300 M2 250 M2 Insights 200 M2 Over the past decade, we have grown the business: • Volume increased by 25% 150 M2
Slide 13: Demand generation model a key competitive advantage
Our demand generation model continues to be a key competitive advantage For personal use only James Hardie go to market Differentiated products Targeting the right Growth focused Increased OTW Sustainable and systems segments tools coverage growth Demand Generation Cycle - James Hardie’s demand driv
Slide 14: Investment in product and system innovation drives growth
Coupled with our go-to-market, our investment in product and system innovation continues to drive growth Driving Product Leadership For personal use only Recent products launched HardieDeck™ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Linea™ Scyon™ Axon™ Stria™ Matrix™ Axent™ Trim Secura™
Slide 15: Continued structural shift to modern methods of construction
There is a continued structural shift to modern methods of construction For personal use only Traditional methods of 5,500 Brick production: 10 year trend construction reducing in demand, driven by: 5,000 Brick Production (millions) – Growth in demand for 4,500 lightweight solutions – Converting bui
Slide 16: Australian capacity utilisation in fibre cement is strong
The Australian capacity utilisation in fibre cement is strong For personal use only - JH estimate of total fibre cement capacity is 67M STM. JHX - Market capacity CSR utilisation in excess of 90%. BGC - Structural rather than cyclical demand driving utilisation. PAGE 16
Slide 17: Investing in capacity to support market penetration
We are investing in capacity to support continued market penetration For personal use only • Phased capital investment of $89M. • Increasing capacity to align with market demand. • Commissioning in line with expectations. PAGE 17 17
Slide 18: Questions?
For personal use only Questions?