James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2017)
29 slides from James Hardie Industries's investor day presentation, Sep 14, 2017
Slide 1: Market Position
MARKET POSITION SEAN GADD EXECUTIVE VICE PRESIDENT, MARKETS AND SEGMENTS SEPTEMBER 2017 Exhibit 99.9
Slide 2: Agenda
PAGE PAGE Agenda • Growth against the market index • James Hardie segment approach • Product thinking 2
Slide 3: Growth Above the Market Index
PAGE PAGE Growth Above the Market Index Market Growth above our Market Index Market Development to convert vinyl Growth against natural wood Defend against lower-value substitutes OSB and Hardboard Competitive Fiber Cement 3 Single Family New Construction Single Family Repair & Remodel Multi-Family
Slide 4: Become the Market Standard in the Wood-Look Market
PAGE PAGE Become the Market Standard in the Wood-Look Market Gain share against Vinyl and Wood while defending against lower value substitutes Competitive Fiber Cement, wood and hardboard Vinyl & Lower Value Substitutes Vinyl *Source: NAHB & JH internal analysis
Slide 5: Market Development Against Vinyl
PAGE PAGE Market Development Against Vinyl • Value Proposition – Curb, front porch and deck appeal – Fire and abuse – Low maintenance – Affordable • New construction segmentation, targeting and positioning (STP) – Geography – Category of home – Builder profile - Better home, Better builder, Better d
Slide 6: Sales Approach Against OSB and Hardboard
PAGE PAGE Sales Approach Against OSB and Hardboard • Value Proposition – James Hardie company support – The full exterior – Low maintenance – Fire, rot, warp, termites – Core colors • Building company partnerships with all key stakeholders along the value chain 6
Slide 7: Sales Approach Against Competitive Fiber Cement
PAGE PAGE Sales Approach Against Competitive Fiber Cement • Value Proposition – James Hardie invented fiber cement – #1 brand – Engineered for Climate ® positioning – Superior technology around durability, density, coatings – Manufacturing scale and platform advantage – Diversified segment participa
Slide 8: Segments
() sames Hardie Segments
Slide 9: Primary demand growth - PDG
PAGE PAGE Primary demand growth - PDG 9 • Taking share against vinyl with ColorPlus® technology • Market Development – Significant cost difference – Required to sell value – Switching costs / barriers risks On The Wall Cost (OTWC) JH Material JH Labor Vinyl Material Vinyl Labor • New Dealer • New
Slide 10: New Construction Market Development
PAGE PAGE New Construction Market Development 1. Establish position at top of the market aspirational product 2. Delivered to the right builder 3. “Shift left” to the next highest price band 4. Drive adoption • Highly effective sales organization • Full stakeholder engagement • Comprehensive marke
Slide 11: Repair and Remodel - Vinyl Standard Markets
PAGE PAGE Repair and Remodel - Vinyl Standard Markets • Drive awareness and preference for James Hardie products with ColorPlus® technology in vinyl “battleground neighborhoods” • Convert battlegrounds into “lock downs” • Enable contractor growth in these key neighborhoods • Reach homeowners through
Slide 12: Enhancing the "Wake"
PAGE PAGE Enhancing the “Wake” 12 Request for quote Request for quote Sold Job Referrals Canvasing (Before and After) Digital (Website and Email) Retail Direct Mail in Targeted NeighborhoodsDoor Hangers / Yard Signs Request for Information Local Events
Slide 13: Partnering - Contractor Alliance Program
PAGE PAGE Partnering - Contractor Alliance Program 13 • First-time user acquisition • Account development (YoY business growth) • Enhanced value to promote loyalty
Slide 14: Defend against OSB Siding
PAGE PAGE Defend against OSB Siding • Win in all segments / all geographies • Win with core colors • Add non-product value programs • Value chain engagement & alignment Sales development approach 14
Slide 15: 100% Hardie
PAGE PAGE 100% Hardie™ 15 • Position the value of full wrap • Engineered for Climate® positioning • Service guarantee
Slide 16: SIDE Master - Installer Affiliation Program
PAGE PAGE SIDE Master – Installer Affiliation Program • An affiliation platform launched in the Midwest in 2015 and now expanding • Target installer SIDE Event Engagement Alignment • Adjust SIDE based on needs by market 16 Business Building Bootcamp Key Topic Breakout Sessions Research & Devel
Slide 17: Defend against Competitive Fiber Cement
PAGE PAGE Defend against Competitive Fiber Cement • Competitive fiber cement manufacturers take a ‘me-too’ approach and compete on lower price against James Hardie products • Leverage our advantages to prevent commoditization of the category – #1 brand – Differentiated products – Manufacturing scale
Slide 18: Products
() sames Hardie Products
Slide 19: Product Strategy
PAGE PAGE Product Strategy 19 Take a 3C, 4P approach - Deliver the optimal product, price, placement and promotion for each segment in all geographies to deliver the long term market position for James Hardie
Slide 20: ColorPlus Technology
PAGE PAGE ColorPlus® Technology • Delivers a high quality, factory-controlled coating designed for our substrate • Delivers a single-source, low-maintenance solution at reduced total cost • Drives growth against vinyl • Builds fences against close alternatives 20
Slide 21: ColorPlus Technology Key initiatives to drive growth
PAGE PAGE ColorPlus® Technology Key initiatives to drive growth 21 Continue demand creation in metro markets to make ColorPlus® Technology the standard. Leverage installer affiliation to accelerate market adoption Deliver non-metro supply chain solution to increase market opportunity Next generation
Slide 22: HardieTrim
PAGE PAGE HardieTrim® • Continue to sell and promote a complete exterior solution as the ultimate low maintenance solution • Continued growth through product line extensions, installer affiliation programs and non-product value-add programs 22
Slide 23: Cemplank
PAGE PAGE Cemplank® • Cemplank® serves as a fighter brand offering a low-cost solution to cost-conscious buyers in target segments and aids category share • Maintain James Hardie brand vs. fighter brand position through marketing mix and differentiation with our channel partners 23
Slide 24: Market Led The ASPYRE Collection from James Hardie
Market Led 24 The ASPYRE Collection from James Hardie TM
Slide 25: Luxury in All Its Forms
LUXURY IN ALL ITS FORMS
Slide 26: The Aspyre Collection: Top of Market segment
PAGE PAGE The Aspyre Collection from James HardieTM What is the Top of Market segment? - Top 10% of homes by price band - 400-500mmsf total opportunity, 250-300mmsf wood-look - Wood-Look opportunity dominated by cedar Why enter the Top of the Market segment? - Extend the fiber cement S-curve – pull
Slide 27: How will we win the Top of the Market?
PAGE PAGE The Aspyre™ Collection from James Hardie™ How will we win the Top of the Market? - Commitment to continuous product innovation - Embracing the architect as key influencer - Selling tools fit for the customer - Investing in centralized marketing to combat fragmentation - Aspyredesign.com -
Slide 28: The Aspyre Collection: What's next?
PAGE PAGE The Aspyre Collection from James Hardie™ What’s next? - Launched on the West Coast in July 2017 - Capital investment made to support national launch in FY19 - Generation 2 product design efforts underway 28
Slide 29: Key Messages
PAGE PAGE Key Messages • Become the market standard in the wood-look market • Drive PDG through the right sales approach, right products and right market programs • Penetrate the Top of Market leveraging The Aspyre Collection from James HardieTM 29
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