James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q3 FY2024 Earnings Presentation
28 slides from James Hardie Industries's earnings presentation, Feb 13, 2024
Slide 1: Q3 FY24 Management Presentation
Q3 FY24 Management Presentation 1 3 F E B R U A RY 2024
Slide 2: Cautionary Note on Forward-Looking Statements
JAMES HARDIE Q3 FY24 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 Q3 FY24 RESULTS AGENDA • Strategy and Operations • Financial Results Aaron Erter CEO • Outlook and Guidance • Q&A Rachel Wilson CFO Page 3
Slide 4: Strategy and Operations
Strategy and Operations 1 3 F E B R U A RY 2024
Slide 5: CEO Operations Update: Outperforming in the Markets We Participate
JAMES HARDIE Q3 FY24 RESULTS CEO OPERATIONS UPDATE: OUTPERFORMING IN THE MARKETS WE PARTICIPATE Operational Focus… …Delivered Strong Q3 Results Continue Strong Execution of • Global Net Sales of US$978.3 Million Our Strategy +14% vs pcp • Record Global Adjusted Net Income of US$179.9 Million up 39
Slide 6: Global Strategic Framework
JAMES HARDIE Q3 FY24 RESULTS GLOBAL STRATEGIC FRAMEWORK Homeowner Focused, Customer and Contractor Driven™ Strategic Initiatives Enabled by Profitably grow and take share where we Customer Integration 1 have the right to win Innovative Solutions Bring our customers high valued, 2 differentiated solu
Slide 7: Unrivaled Support Localized Manufacturing
JAMES HARDIE Q3 FY24 RESULTS Unrivaled Support Localized Manufacturing1 NA Manufacturing Footprint JH Facility 500 Miles Close Proximity to Our Customers Customer Integration 67% of Product Deliveries Are Within 500 miles of our Plants Right Products, Right Place, Right Time Efficient Supp
Slide 8: Financial Results
Financial Results 1 3 F E B R U A RY 2024
Slide 9: Global Results – Q3 FY24
JAMES HARDIE Q3 FY24 RESULTS GLOBAL RESULTS – Q3 FY24 Global Global Adjusted Global Nine Months Net Sales Net Income Adj. EBITDA% Operating Cash Flow $978.3M $179.9M 28.7% $749.5M +14% +39% +440bps +73% vs. pcp vs. pcp vs. pcp vs. pcp Record Quarterly Adjusted Net Income & Nine Months Operating Cash
Slide 10: Global Adjusted Net Income
JAMES HARDIE Q3 FY24 RESULTS GLOBAL ADJUSTED NET INCOME Adjusted Net Income of $179.9 million increased $50.7 million versus the prior corresponding period • North America, APAC, and Europe EBIT US$ Millions growth contributed $64.4 million • SG&A increased 36% to $156.3 million, primarily driven by
Slide 11: North America Summary
JAMES HARDIE Q3 FY24 RESULTS NORTH AMERICA SUMMARY Q3 FY24 9 Months FY24 Q3 Net Sales of US$727.0 Million 766.5 mmsf 2,287.5 mmsf Sales Volume • Volume up 9%; supported by single family new construction +9% -2% with South-Central & North-West as the best performing US$943 /msf US$937 /msf regions Av
Slide 12: APAC Summary
JAMES HARDIE Q3 FY24 RESULTS APAC SUMMARY Q3 FY24 9 Months FY24 Q3 Net Sales of A$206.3 Million 133.1 mmsf 414.0 mmsf Sales Volume • Average Net Sales Price up 14% +6% -4% A$1,384 /msf A$1,381 /msf • Volume up 6%; the best performing region was New Zealand Average Net Sales Price +14% +14% A$206.3 M
Slide 13: Europe Summary
JAMES HARDIE Q3 FY24 RESULTS EUROPE SUMMARY Q3 FY24 9 Months FY24 Q3 Net Sales of €109.3 Million 179.7 mmsf 541.7 mmsf Sales Volume • Average Net Sales Price up 18% -10% -15% €484 /msf €483 /msf • Volume down 10%, driven by reduced market activity in Fiber Average Net Sales Price Gypsum +18% +20% €1
Slide 14: Liquidity, Cash Flow, Capital Allocation & Capital Expenditure
JAMES HARDIE Q3 FY24 RESULTS LIQUIDITY, CASH FLOW, CAPITAL ALLOCATION & CAPITAL EXPENDITURE Cash Flow Capital Allocation • 9 Months FY24 Operating Cash Flow of $749.5 million Framework • Invest in Organic Growth • 9 Months FY24 Working Capital improved by $121.2 • Maintain Flexible Balance Sheet mil
Slide 15: Outlook and Guidance
Outlook and Guidance 1 3 F E B R U A RY 2024
Slide 16: CY24 Market Outlook: North America
JAMES HARDIE Q3 FY24 RESULTS CY24 MARKET OUTLOOK: NORTH AMERICA1 External Range US Single Family New Construction +3% to +12% Calendar 2024 Growth Outlook2 Average: +5% External Range US Multi Family New Construction -45% to +3% Calendar 2024 Growth Outlook3 +X% Average: -21% External Range US Repai
Slide 17: North America – FY24 Quarterly Volume Sensitivity
JAMES HARDIE Q3 FY24 RESULTS NORTH AMERICA – FY24 QUARTERLY VOLUME SENSITIVITY Quarterly Volume Scenarios 650 750 850+ mmsf mmsf mmsf Estimated Quarterly EBIT Margin (%) <28% 30 – 32% 32+% Given the uncertain nature of the US housing market, we have modeled our expected quarterly EBIT margin outcome
Slide 18: Guidance: Q4 Fiscal Year 2024
JAMES HARDIE Q3 FY24 RESULTS GUIDANCE: Q4 FISCAL YEAR 2024 North America Volume 750 – 780 million standard feet North America EBIT Margin 30% - 32% Adjusted Net Income US$ 165 – 185 million Positioned for a Strong Fourth Quarter Page 18
Slide 19: A Global Growth Company
JAMES HARDIE Q3 FY24 RESULTS JAMES HARDIE – A GLOBAL GROWTH COMPANY Responsible Corporate Citizenship Experienced Management Team Demand Creation Strong Cash Generation & Balance Sheet Brand of Choice Attractive Returns Innovative Solutions Premium Products and Services Localized Manufacturing Hardi
Slide 20: Investor Day 2024
JAMES HARDIE Q3 FY24 RESULTS INVESTOR DAY 2024 Register Your Interest Here Page 20
Slide 21: Questions
Questions 1 3 F E B R U A RY 2024
Slide 22: Appendix
Appendix 1 3 F E B R U A RY 2024
Slide 23: Non-GAAP Financial Measures
JAMES HARDIE Q3 FY24 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 24: Non-GAAP Financial Measures
JAMES HARDIE Q3 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted EBIT and Adjusted EBITDA US$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months Q3 FY24 Q3 FY23 FY24 FY23 EBIT $ 226.1 $ 162.9 $ 683.4 $ 610.8 Asbestos: Asbestos adjustments loss (gain) 7.6 2.2 3.7 (19.5) AICF SG&A exp
Slide 25: Non-GAAP Financial Measures
JAMES HARDIE Q3 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Asia Pacific Fiber Cement Segment EBIT and EBITDA US$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months Q3 FY24 Q3 FY23 FY24 FY23 Asia Pacific Fiber Cement Segment EBIT $ 36.7 $ 27.6 $ 127.6 $ 102.5 Asia Pacific Fiber Cement S
Slide 26: Non-GAAP Financial Measures
JAMES HARDIE Q3 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted interest, net US$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months Q3 FY24 Q3 FY23 FY24 FY23 Interest, net $ 3.1 $ 7.0 $ 13.4 $ 24.0 AICF interest income, net (2.2) (1.5) (6.7) (2.5) Adjusted interest, net $ 5.3 $ 8.
Slide 27: Non-GAAP Financial Measures
JAMES HARDIE Q3 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted effective tax rate US$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months Q3 FY24 Q3 FY23 FY24 FY23 Income before income taxes $ 223.6 $ 156.0 $ 672.8 $ 599.2 Asbestos: Asbestos adjustments loss (gain) 7.6 2.2 3.7 (19.
Slide 28: Q3 FY24 Management Presentation
Q3 FY24 Management Presentation 1 3 F E B R U A RY 2024
James Hardie Industries — Q3 FY2024 Earnings Presentation on 6ix