James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q2 FY2022 Earnings Presentation
37 slides from James Hardie Industries's earnings presentation, Nov 9, 2021
Slide 1: Q2 FY22 Management Presentation
Q2 FY22 MANAGEMENT PRESENTATION 9 November 2021
Slide 2: Cautionary Note on Forward-Looking Statements
James Hardie Q2 FY22 Results CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Management Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the “Comp
Slide 3: Agenda
James Hardie Q2 FY22 Results AGENDA • Strategy Update Dr. Jack Truong Chief Executive Officer • Q2 FY22 Financial Results • Questions and Answers Jason Miele Chief Financial Officer Page 3
Slide 4: Strategy Update
STRATEGY UPDATE
Slide 5: Drive Profitable Growth Globally
James Hardie Q2 FY22 Results DRIVE PROFITABLE GROWTH GLOBALLY 1 Market to Homeowners to Create Demand 2 Penetrate and Drive Profitable Growth in Existing and New Segments 3 Commercialize Global Innovations by Expanding Into New Categories Continued Execution and Expansion of Foundational Initiatives
Slide 6: Profitable Organic Growth Through Marketing to Homeowners
James Hardie Q2 FY22 Results 1 PROFITABLE ORGANIC GROWTH THROUGH MARKETING TO HOMEOWNERS 360 INTEGRATED MARKETING CAMPAIGN KEY PERFORMANCE METRICS Brand +109% Increase in aided awareness (Jul 2021 Growth in key vs May 2021) brand metrics Website +81% Increase in new visitor Traffic website sessions
Slide 7: Profitable Organic Growth Through Marketing to Homeowners
James Hardie Q2 FY22 Results 1 PROFITABLE ORGANIC GROWTH THROUGH MARKETING TO HOMEOWNERS RECENT MEDIA PARTNERSHIPS Episode 9 “Minty Green” aired 6 August 2021 Episode 6 aired BEFORE 9 July 2021 Magnolia Photos © 2021 Discovery or its subsidiaries and affiliates. Used with permission; all rights rese
Slide 8: Penetrate and Drive Profitable Growth in Existing and New Segments
James Hardie Q2 FY22 Results 2 PENETRATE AND DRIVE PROFITABLE GROWTH IN EXISTING AND NEW SEGMENTS Drive High Value Product Mix in North America Q2 Net Sales Growth (US$) Price +23% Average Net Sales Price (US$/MSF) 15% 21% 25% $2,000 17% Hardie® market-led 10% % Price/Mix Growth Over pcp 14% % Volum
Slide 9: Penetrate and Drive Profitable Growth in Existing and New Segments
James Hardie Q2 FY22 Results 2 PENETRATE AND DRIVE PROFITABLE GROWTH IN EXISTING AND NEW SEGMENTS Drive High Value Product Mix in Europe Q2 Net Sales Growth (€) Price +23% Hardie® Market-led 28% Average Net Sales Price (€/MSF) 15% 30% €2,000 Innovations (FC) % Price/Mix Growth Over pcp % Volume Grow
Slide 10: Profitable Organic Growth via Innovation – North America
James Hardie Q2 FY22 Results 3 PROFITABLE ORGANIC GROWTH VIA INNOVATION – NORTH AMERICA HARDIE® TEXTURED PANELS Oregon, USA Washington, USA Florida, USA Oregon, USA Page 10
Slide 11: Profitable Organic Growth via Innovation – Europe
James Hardie Q2 FY22 Results 3 PROFITABLE ORGANIC GROWTH VIA INNOVATION – EUROPE HARDIE® VL PLANK Germany France Germany Switzerland Page 11
Slide 12: Profitable Organic Growth via Innovation – Australia
James Hardie Q2 FY22 Results 3 PROFITABLE ORGANIC GROWTH VIA INNOVATION – AUSTRALIA HARDIE™ FINE TEXTURE CLADDING BEFORE NSW, Australia Victoria, Australia NSW, Australia AFTER NSW, Australia NSW, Australia Page 12
Slide 13: Ten Consecutive Quarters of Delivering Growth Above Market
James Hardie Q2 FY22 Results TEN CONSECUTIVE QUARTERS OF DELIVERING GROWTH ABOVE MARKET AND STRONG RETURNS North America Global Net Sales Net Sales US$635.3 million +23% Adj. EBIT US$182.5 million +23% US$903.2 million Adjusted EBIT Margin 28.7% +23% Europe Net Sales €104.6 million +23% Allmillion +
Slide 14: Building Sustainable Communities: Environmental, Social and Governance
James Hardie Q2 FY22 Results BUILDING SUSTAINABLE COMMUNITIES: ENVIRONMENTAL, SOCIAL AND GOVERNANCE Communities Environment Reduction1 in Scope 1 and Scope 2 98% of employees hired locally 40% greenhouse gas intensity by 2030 of raw materials sourced within 100 83% miles of manufacturing facilities
Slide 15: Q2 FY22 Financial Results
Q2 FY22 FINANCIAL RESULTS
Slide 16: Global Results
James Hardie Q2 FY22 Results GLOBAL RESULTS Q2 FY22 6 Months FY22 • All 3 regions delivered double-digit Net Sales 1,183.4 mmsf 2,324.0 mmsf Sales Volume +14% +19% and Adjusted EBIT growth Net Sales US$903.2 M US$1,746.5 M • All 3 regions are executing on the Global +23% +28% Strategy simultaneously
Slide 17: North America Summary
James Hardie Q2 FY22 Results NORTH AMERICA SUMMARY Q2 FY22 6 Months FY22 • Delivered record Net Sales in both periods 781.0 mmsf 1,519.9 mmsf Sales Volume +14% +17% through strong volume growth combined with exceptional Price/Mix Price/Mix +9% +8% • Continued execution in driving High Value Product
Slide 18: Europe Summary
James Hardie Q2 FY22 Results EUROPE SUMMARY Q2 FY22 6 Months FY22 • Delivered exceptional Net Sales growth in 240.6 mmsf 487.5 mmsf Sales Volume +15% +21% both periods through strong volume growth combined with outstanding Price/Mix Price/Mix +8% +8% • Continued execution in driving High Value Produ
Slide 19: APAC Summary
James Hardie Q2 FY22 Results APAC SUMMARY Q2 FY22 6 Months FY22 • Delivered outstanding Net Sales growth in 161.8 mmsf 316.6 mmsf Sales Volume +11% +24% both periods through strong volume growth Price/Mix +4% -1% • Continued execution in driving High Value Product penetration in ANZ; Price/Mix growt
Slide 20: Operating Cash Flow
James Hardie Q2 FY22 Results OPERATING CASH FLOW CAPITAL EXPENDITURES 120 108.1 Operating Cash Flow US$ Millions 800 727.6 700 100 616.2 600 38.1 80 US$ Millions 1 500 416.8 400 357.5 60 44.7 300 40 14.1 70.0 200 20 100 30.6 0 0 1H FY21 1H FY22 1H FY21 1H FY22 6 Months TTM Maintenance & Other Capaci
Slide 21: Capital Allocation Aligned to Profitable Growth Strategy
James Hardie Q2 FY22 Results CAPITAL ALLOCATION ALIGNED TO PROFITABLE GROWTH STRATEGY 36 Month Cumulative 1 Oct 2018 – 30 Sep 2021 • Preserve strong liquidity and flexibility Total Capex • Invest in organic growth: capacity 1 ~US$590 Million expansion, market driven innovation & Debt Paydown marketi
Slide 22: AICF Funding Accelerating
James Hardie Q2 FY22 Results AICF FUNDING ACCELERATING JHX Annual Contributions to AICF (A$) AICF Cash and Investments Balance (A$) 350 328.2 300 253 300 250 250 220.9 A$ Millions 200 A$ Millions 173 200 156.7 150 150 119.0 94 100 81 100 50 50 0 0 FY15-FY19 FY20 FY21 FY22 31 Mar 2019 31 Mar 2020 31
Slide 23: Full Year Fiscal Year 2022 Guidance
James Hardie Q2 FY22 Results FULL YEAR FISCAL YEAR 2022 GUIDANCE Management raises full year FY22 Adjusted Net Income1 to range of US$580 million and US$600 million (From US$550 million and US$590 million)3 North America Net Sales Growth 20+% growth versus FY21 Price/Mix +8% to +9% improvement versu
Slide 24: Financial Highlights for the Half Year
James Hardie Q2 FY22 Results FINANCIAL HIGHLIGHTS FOR THE HALF YEAR Strategic Execution in driving high value +28% Global Net Sales growth product penetration +34% Global EBIT growth Investing in growth: +25% Increase in Global SG&A and R&D • Marketing • Innovation • Capacity expansion US$250 - $350
Slide 25: Questions
QUESTIONS
Slide 26: Appendix
APPENDIX
Slide 27: Driving a Higher Value Product Mix – Average Net Sales Price
James Hardie Q2 FY22 Results DRIVING A HIGHER VALUE PRODUCT MIX – AVERAGE NET SALES PRICE Europe North America Average Net Sales Price 850 Average Net Sales Price 350 343 807 340 800 774 328 330 € per MSF US$ per MSF 745 750 725 320 718 312 311 698 306 700 310 300 650 290 600 280 FY18 FY19 FY20 FY21
Slide 28: General Corporate Costs and Research & Development
James Hardie Q2 FY22 Results GENERAL CORPORATE COSTS RESEARCH & DEVELOPMENT General Corporate Costs1 Research and Development (80) (20) (65.2) (16.7) US$ Millions US$ Millions (60) (53.6) (15) (12.4) Q2 6 Months Q2 6 Months (40) (10) (8.3) (28.9) (29.7) (6.4) (20) (5) 0 0 FY21 FY22 FY21 FY22 • Inves
Slide 29: Liquidity Profile
James Hardie Q2 FY22 Results LIQUIDITY PROFILE Corporate debt structure • €400 million (US$464 million)2 3.625% senior unsecured notes, maturing 2026 (callable in October 2021) • US$400 million 5.00% senior unsecured notes maturing 2028 (callable in January 2023) 2 • US$500 million unsecured RCF, ma
Slide 30: Depreciation and Amortization
James Hardie Q2 FY22 Results DEPRECIATION AND AMORTIZATION Page 30
Slide 31: Asbestos Claims Data
James Hardie Q2 FY22 Results ASBESTOS CLAIMS DATA First Half ended 30 September 2021: • Net cash outflow was 10% below actuarial expectations • Gross cash outflow was 3% below actuarial expectations • Claims received were 9% below actuarial estimates and 10% below pcp • Number of claims settled were
Slide 32: Non-GAAP Financial Measures
James Hardie Q2 FY22 Results NON-GAAP FINANCIAL MEASURES This Management Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Media Release and Condensed
Slide 33: Non-GAAP Financial Measures
James Hardie Q2 FY22 Results NON-GAAP FINANCIAL MEASURES Page 33
Slide 34: Non-GAAP Financial Measures
James Hardie Q2 FY22 Results NON-GAAP FINANCIAL MEASURES Page 34
Slide 35: Non-GAAP Financial Measures
James Hardie Q2 FY22 Results NON-GAAP FINANCIAL MEASURES Page 35 1 Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments
Slide 36: Non-GAAP Financial Measures
James Hardie Q2 FY22 Results NON-GAAP FINANCIAL MEASURES Page 36 1 Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments
Slide 37: Q2 FY22 Management Presentation
Q2 FY22 MANAGEMENT PRESENTATION 9 November 2021
James Hardie Industries — Q2 FY2022 Earnings Presentation on 6ix