James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (November 2013)
38 slides from James Hardie Industries's investor presentation, Nov 26, 2013
Slide 1: Investor Presentation
Exhibit 99.1 INVESTOR PRESENTATION NOVEMBER 2013 1
Slide 2: Disclaimer
DISCLAIMER Investor Presentation This Investor Presentation contains forward-looking statements. James Hardie may from time to time make forward-looking statements in its periodic reports filed with or furnished to the SEC, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering ci
Slide 3: Disclaimer (Continued)
DISCLAIMER (CONTINUED) Investor Presentation 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 Investor Presentation • Business Overview • USA & Europe Fibre Cement • Asia Pacific Fibre Cement • Group Outlook • Summary • Appendix In this Investor Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financial measures included
Slide 5: JHX: A Growth Focused Company
JHX: A GROWTH FOCUSED COMPANY Investor Presentation Annual net sales US$1.5b Total assets US$1.6b Net cash US$126m Operations in North America, Asia Pacific and Europe 2,700 employees Market cap US$5.0b S&P/ASX 100 company NYSE ADR listing Note: Market capitalization is at 21 November 2013. Total as
Slide 6: Group Overview
1 GROUP OVERVIEW Investor Presentation US Millions Q2 Q2 % % HY2014 HY2013 FY2014 FY2013 Change Change Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses 56.3 38.9 45 108.3 82.7 31 and tax adjustments Net Operating Profit 51.9 15.0 194.1 83.5 nd nd 1 Compa
Slide 7: JHX: A World Leader in Fibre Cement
JHX: A WORLD LEADER IN FIBRE CEMENT Investor Presentation USA and Europe Fibre Cement Products Siding Soffit Fascia Trim Backerboard Asia Pacific Fibre Cement Products Residential siding Commercial exteriors Flooring Ceilings and internal walls 7
Slide 8: Global Business Portfolio
1 GLOBAL BUSINESS PORTFOLIO Investor Presentation 81% 76% 75% 24% 25% 19% Volume Net Sales EBIT* USA and Europe Fibre Cement Asia Pacific Fibre Cement 1 All numbers are for the 2 nd quarter ended 30 September 2013 *EBIT – Excludes Research and Development EBIT, Asbestos-related items, New Zealand pr
Slide 9: Fibre Cement: Superior Product Performance
FIBRE CEMENT: SUPERIOR PRODUCT PERFORMANCE Investor Presentation Fibre cement is more durable than wood and engineered wood, looks and performs better than vinyl, and is more cost effective and quicker to build with than brick Fibre Cement Vinyl Engineered Wood Fire resistant Hail resistant Resists
Slide 10: Product Leadership Example: HardieZone System
PRODUCT LEADERSHIP EXAMPLE: HARDIEZONE™ SYSTEM Investor Presentation th nd • 7 Generation versus 2 Generation generic fibre cement • The HardieZone™ System represents a logical extension of Hardie technology 10
Slide 11: The USA Business: Largest Fibre Cement Producer in North America
THE USA BUSINESS: LARGEST FIBRE CEMENT PRODUCER IN NORTH AMERICA Investor Presentation 11
Slide 12: USA Fibre Cement Top Line Growth
USA FIBRE CEMENT Investor Presentation Top Line Growth 3,000 $1,300 2,800 $1,200 2,600 $1,100 2,400 $1,000 2,200 2,000 $900 1,800 $800 1,600 $700 1,400 $600 1,200 $500 1,000 $400 800 $300 600 400 $200 200 $100 0 $0 JH Volume Housing Starts JH Revenue Rolling 12 month average of seasonally adjusted e
Slide 13: USA and Europe Fibre Cement
USA AND EUROPE FIBRE CEMENT Investor Presentation 13
Slide 14: USA and Europe Fibre Cement
USA AND EUROPE FIBRE CEMENT Investor Presentation 14
Slide 15: Total US Housing Starts
TOTAL US HOUSING STARTS Investor Presentation U.S. Housing Starts Calendar Quarters 800 50% 600 40% 30% 400 20% 200 10% 0 0% -200 -10% -400 -20% -600 -30% -800 -40% -1000 -50% -1200 Housing %Growth (same QtrPY) -60% starts 15
Slide 16: Asia Pacific Fibre Cement
ASIA PACIFIC FIBRE CEMENT Investor Presentation Five manufacturing plants in Asia Pacific 1 Net sales US$374.8m 1 EBIT US$86.4m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities 1 Net Sales and EBIT equal to 1HFY14 annualised. EBIT excludes
Slide 17: Asia Pacific Fibre Cement - Examples
ASIA PACIFIC FIBRE CEMENT - EXAMPLES Investor Presentation Ceilings and partitions Exterior cladding Philippines Australia Australia Interior walls New Zealand General purpose flooring 17
Slide 18: Capital Management and Dividends
CAPITAL MANAGEMENT AND DIVIDENDS Investor Presentation • On 14 November 2013, the company announced an ordinary dividend of US8.0 cents per security, up from US5.0 cents per security in the prior corresponding half year. The dividend was declared in US currency and will be paid on 28 March 2014, wit
Slide 19: Capital Management and Dividends (Cont'd)
CAPITAL MANAGEMENT AND DIVIDENDS (CONT’D) Investor Presentation The company will be undertaking a further review of its capital structure and capital management objectives and expects to be in a position to make further distributions to shareholders in the near term as follows: 1. subject to share p
Slide 20: Group Outlook
GROUP OUTLOOK Investor Presentation USA and Europe Fibre Cement • The US operating environment continues to reflect an increasing number of housing starts and improving house values • The company is continuing with its plan to expand capacity through new capital investments and re-commissioning of i
Slide 21: Summary
SUMMARY Investor Presentation We have a strong, well-established, growth-focused, strong cash-generating and high return business We have a sustainable competitive advantage Our model for strong growth is based on: Large market opportunity Superior value proposition Proprietary and/or protected tech
Slide 22: Appendix
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Slide 23: Global Strategy
GLOBAL STRATEGY Investor Presentation Industry leadership and profitable growth Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Introduce differentiated products to deliver a sustainable comp
Slide 24: Key Ratios
KEY RATIOS Investor Presentation 24
Slide 25: USA and Europe Fibre Cement 5 Year Results Overview
USA AND EUROPE FIBRE CEMENT 5 YEAR RESULTS OVERVIEW Investor Presentation FY09 FY10 FY11 FY12 FY13 Net Sales 929 828 814 862 951 US$m Sales Volume 1,527 1,304 1,248 1,332 1,489 mmsf Average Price 608 632 648 642 627 2 US$ per msf 1 EBIT US$m 199 209 160 163 163 EBIT Margin % 1 21 25 20 19 17 1 Exclu
Slide 26: Asia Pacific Fibre Cement 5 Year Results Overview
ASIA PACIFIC FIBRE CEMENT 5 YEAR RESULTS OVERVIEW Investor Presentation FY09 FY10 FY11 FY12 FY13 Net Sales 273 297 353 376 370 US$m Sales Volume 391 390 408 392 394 mmsf Average Price 871 886 906 906 901 2 US$ per msf 1 EBIT US$m 47 59 79 86 75 EBIT Margin %1 17 20 23 23 20 1 Excludes New Zealand pr
Slide 27: Financial Summary
1 FINANCIAL SUMMARY Investor Presentation US$ Millions Q2 '14 Q2 '13 % Change HY '14 HY '13 % Change Net Sales USA and Europe Fibre Cement $ 298.7 $ 238.1 25 $ 576.8 $ 490.1 18 Asia Pacific Fibre Cement 93.3 96.3 (3) 187.4 184.0 2 Total Net Sales $ 392.0 $ 334.4 17 $ 764.2 $ 674.1 13 EBIT - US$ Mill
Slide 28: Endnotes
ENDNOTES Investor Presentation This Investor 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 Consolidated Financial Stat
Slide 29: Endnotes (Continued)
ENDNOTES (CONTINUED) Investor Presentation Financial Measures – US GAAP equivalents This document contains financial statement line item descriptions that are considered to be non-US GAAP, but are consistent with those used by Australian companies. Because the company prepares its consolidated finan
Slide 30: Endnotes (Continued)
ENDNOTES (CONTINUED) Investor Presentation EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales. Sales Volumes mmsf – million square feet, where a square foot is defined as a standard square foot of 5/16” thickness msf – thousand square feet, where a square foot is defined as a
Slide 31: Non-US GAAP Financial Measures
NON-US GAAP FINANCIAL MEASURES Investor Presentation EBIT and EBIT margin excluding asbestos, ASIC expenses and New Zealand product liability expenses – EBIT and EBIT margin excluding asbestos, ASIC expenses and New Zealand product liability expenses are not measures of financial performance under U
Slide 32: Non-US GAAP Financial Measures (Cont'd)
NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments – Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments is not
Slide 33: Non-US GAAP Financial Measures (Cont'd)
NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Diluted earnings per share excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments – Diluted earnings per share excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjust
Slide 34: Non-US GAAP Financial Measures (Cont'd)
NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Effective tax rate excluding asbestos, New Zealand product liability expenses and tax adjustments – Effective tax rate on earnings excluding asbestos, New Zealand product liability expenses and tax adjustments is not a measure of financia
Slide 35: Non-US GAAP Financial Measures (Cont'd)
NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Adjusted EBITDA – is not a measure of financial performance under US GAAP and should not be considered an alternative to, or more meaningful than, income from operations, net income or cash flows as defined by US GAAP or as a measure of p
Slide 36: Non-US GAAP Financial Measures (Cont'd)
NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs – General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs is n
Slide 37: Non-US GAAP Financial Measures (Cont'd)
NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Selling, general and administrative expenses excluding New Zealand product liability expenses – Selling, general and administrative expenses excluding New Zealand product liability expenses is not a measure of financial performance under
Slide 38: INVESTOR PRESENTATION
INVESTOR PRESENTATION NOVEMBER 2013 38
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