James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (September 2010)
16 slides from James Hardie Industries's investor presentation, Sep 16, 2010
Slide 1: Non-Metro Segment
Non-Metro Segment Loi McLoughlin 1
Slide 2: Disclaimer
Disclaimer This Management's 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 United States Securities and Exchange Commission on Forms 20-F and 6-K, in the annual reports to sh
Slide 3: Agenda
Agenda 3 Non-Metro Market Overview Going Forward Plan Q&A
Slide 4: Non-Metro Market Overview
Non-Metro Market Overview
Slide 5: Non-Metro vs. Metro Map
Non-Metro vs. Metro Map 5 Priority Non-Metro (45) Secondary Non-Metro (low opportunity) Metro
Slide 6: NC Starts Trend
NC Starts Trend 6 Source: JH Planning Department, Dodge - reference slide 4 6
Slide 7: Market Overview - Housing Characteristics Comparison
7 Market Overview - Housing Characteristics Comparison Source: US Census Bureau, 2008 Characteristics of New Homes Survey Type SF (%) MF (%) Mobile home (%) Average Home Size (sf) Home Value (cost per square foot) % of Housing cost as a % of income Metro 59% 37% 4% 2,582 $88 24% Non-Metro 78% 7% 15%
Slide 8: 2008 Total New Homes Cladding Metro vs. Non-Metro
8 2008 Total New Homes Cladding Metro vs. Non-Metro Source: US Census Bureau, 2008 Characteristics of New Homes Survey
Slide 9: New Homes By Builder Classification
9 New Homes By Builder Classification 69.5% Built for Sale (Land & House) Owners Built (home owner as GC) Non-Metro * 12.5% Contractor Built (builder or GC on owner's land) 18.0% Metro * US * Source: US Census Bureau, 2008 Characteristics of New Homes Survey * (JH Observation) % of total Homes built
Slide 10: Scale is Important in Non-Metro Markets
Scale is Important in Non-Metro Markets Metro Non -Metro Starts Equivalent Small Geography Large Geography Average # of Homes built per builder* 110 15 Average siding volume per dealer Medium to high Low R&R Contractors More Specialists (Siding only) More Generalist (doing other roofing, windows, NC
Slide 11: Funding of Non-Metro Market Development
Funding of Non-Metro Market Development Channel partners cannot normally afford to fund market development activities focused on a specific product category since the small differences in margins limit the potential payback for them Manufacturers cannot normally afford market development due to scal
Slide 12: Servicing Non-Metro Markets
Servicing Non-Metro Markets Costs to the builder / contractor are normally higher than in metro markets due to additional supply chain participants, higher margins in the supply chain and logistics inefficiencies JH will use traditional channels, but will not face the normal logistics costs and or m
Slide 13: Go Forward Plan
Go Forward Plan
Slide 14: Key Result Drivers
Key Result Drivers Sales Resource Increase the number of reps in non-metro markets Rep Training / Development (scale approach) Supply Chain Channel alignment to support market development Logistics capability for both primed units and C+ job packs to market Sales Process Channel management Territory
Slide 15: Summary
Summary The non-metro markets represent a growth opportunity for James Hardie Scale is required to service non-metro markets efficiently James Hardie is in a unique position in that we can afford market development in smaller markets Additional resources are being put in place to accelerate growing
Slide 16: Questions
Questions
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