James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (May 2021)
56 slides from James Hardie Industries's investor day presentation, May 27, 2021
Slide 1: James Hardie Investor Day 2021
Page 1 James Hardie Investor Day 2021 JHX INVESTOR DAY MONDAY MAY 24TH, 2021 – CHICAGO, ILLINOIS FLORIDA: CAPE COD Exhibit 99.1
Slide 2: Cautionary Note on Forward-Looking Statements
James Hardie Investor Day 2021 Page 2 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 “Company”) may from time to time make forw
Slide 3: Agenda
James Hardie Investor Day 2021 Page 3 AGENDA Time Topic Presenter 25 Mins Strategic Plan Jack 15 Mins Growth Through Marketing to Homeowners Marc / Cathleya 20 Mins Growth Through Global Innovation Fran / Sami 5 Mins Break 5 Mins Financial Summary Jason 5 Mins Closing Comments Jack 45 Mins Question
Slide 4: Presenters
James Hardie Investor Day 2021 Page 4 Dr. Jack Truong Chief Executive Officer Jason Miele Chief Financial Officer Marc Setty Head of Marketing North America Cathleya Buchanan Head of Marketing APAC Sami Rahman Head of Product Management North America Fran Flanagan Head of Consumer Marketing PRESENTE
Slide 5: Strategic Plan
Page 5 James Hardie Investor Day 2021 JHX STRATEGIC PLAN NEW YORK: COLONIAL
Slide 6: Our Vision
James Hardie Investor Day 2021 Page 6 OUR VISION To be a PREMIER, CONSUMER BRANDED COMPANY that offers ENDLESS DESIGN POSSIBILITIES to EXTERIORS and INTERIORS of the home ALABAMA: CRAFTSMAN TUDOR
Slide 7: Our Mission
James Hardie Investor Day 2021 Page 7 OUR MISSION To be a HIGH PERFORMANCE GLOBAL COMPANY that delivers ORGANIC GROWTH ABOVE MARKET WITH STRONG RETURNS, consistently, QUARTER‐ON‐QUARTER, and YEAR‐ON‐YEAR CANADA: TRADITIONAL
Slide 8: FY15-FY19 Financial Results: Profitable Growth Stalled
James Hardie Investor Day 2021 Page 8 FY15‐FY19 FINANCIAL RESULTS…PROFITABLE GROWTH STALLED 1,657 1,728 1,922 2,055 2,507 FY15 FY16 FY17 FY18 FY19 304 351 354 398 405 FY15 FY16 FY17 FY18 FY19 4 Year CAGR: +7%1 221 243 249 291 301 FY15 FY16 FY17 FY18 FY19 186 223 383 309 304 FY15 FY16 FY17 FY18 FY19
Slide 9: A New James Hardie: Transform to Enable Consistent, Profitable Growth
James Hardie Investor Day 2021 Page 9 A NEW JAMES HARDIE World class manufacturing via LEAN to expand margins Closely partner with customers via Push/Pull strategy to drive above market growth Integrate supply chain with our customers to serve the market seamlessly with optimal working capital
Slide 10: From World's Best Fiber Cement Producer to World Class Manufacturer via LEAN
James Hardie Investor Day 2021 Page 10 A NEW JAMES HARDIE: FROM WORLD’S BEST FIBER CEMENT PRODUCER… Global LEAN Savings Targets FY22‐FY24 $US 340 MM2 …TO A WORLD CLASS MANUFACTURER VIA LEAN Global LEAN Savings After Eight Quarters1 $US 107 MM1 1. Cumulative for FY20 and FY21 LEAN Savings and Targets
Slide 11: Executing Push-Pull Strategy: Hunter Lansing, CEO
James Hardie Investor Day 2021 Page 11 A NEW JAMES HARDIE: EXECUTING PUSH‐PULL STRATEGY Hunter Lansing, CEO $1.0 Bn Revenue 112 Branches in 35 States 1,600 Sales Associates
Slide 12: Executing Push-Pull Strategy: Mike Jost, COO
James Hardie Investor Day 2021 Page 12 A NEW JAMES HARDIE: EXECUTING PUSH‐PULL STRATEGY Mike Jost, COO $12.1 Bn Revenue 800 Nationwide Locations 15,000 Sales Associates
Slide 13: Step Change in Delivering Consistent Financial Results, Globally
James Hardie Investor Day 2021 Page 13 A NEW JAMES HARDIE: STEP CHANGE IN DELIVERING CONSISTENT FINANCIAL RESULTS, GLOBALLY 1,657 1,728 1,922 2,055 2,507 2,607 2,909 FY15 FY16 FY17 FY18 FY19 FY20 FY21 304 351 354 398 405 487 629 FY15 FY16 FY17 FY18 FY19 FY20 FY21 2 Year CAGR: +8% 221 243 249 291 301
Slide 14: Profitable Growth in an Expanding Global Footprint
James Hardie Investor Day 2021 Page 14 343.9 387.9 588.093.8 99.8 128.2 1.3 10.0 42.7 439.0 497.7 758.9 FY17 FY19 FY21 A NEW JAMES HARDIE: PROFITABLE GROWTH IN AN EXPANDING GLOBAL FOOTPRINT 1,493.4 1,676.9 2,040.2 370.6 446.8 458.2 41.2 368.3 410.3 1,905.2 2,492.0 2,908.7 FY17 FY19 FY21 Net Sales1 U
Slide 15: Front Row Seat to Design Changes Around the World
Page 15 James Hardie Investor Day 2021 JAMES HARDIE HAS A FRONT ROW SEAT TO DESIGN CHANGES AROUND THE WORLD… …THAT TRANSFORMS THE WAY THE WORLD BUILDS WITH ENDLESS POSSIBILITIES OF DESIGN AND AESTHETICSMODERN LOOK Europe2 Australia1 North America3
Slide 16: FY22 and Beyond: Drive Profitable Growth Globally
James Hardie Investor Day 2021 Page 16 FY22 AND BEYOND: DRIVE PROFITABLE GROWTH GLOBALLY Market to Homeowners to Create Demand Penetrate and Drive Profitable Growth in Existing and New Segments Commercialize Global Innovations by Expanding Into New Categories Continued Execution and Expansion of Fou
Slide 17: Push-Pull: Integrated Marketing to Christine
James Hardie Investor Day 2021 Page 17 PUSH – PULL: 360 INTEGRATED MARKETING TO CHRISTINE… Campaign Started on May 3rd, 2021
Slide 18: Extend Into New and Existing Segments (NA Repair and Remodel)
James Hardie Investor Day 2021 Page 18 FY22 AND BEYOND: EXTEND INTO NEW AND EXISTING SEGMENTS (NA REPAIR AND REMODEL) 6% 14% 13% 12% 55% Built 1979 or Earlier Built 2000 to 2009 Built 1990 to 1999 Built 1980 to 1989 1 2019 US Census‐Detached Homes (American Housing Survey) Built 2010 or Later Share
Slide 19: Global Innovation Transforms the Way the World Builds
Page 19 James Hardie Investor Day 2021 FY22 AND BEYOND: GLOBAL INNOVATION…TRANSFORM THE WAY THE WORLD BUILDS Trusted Protection & Low Maintenance Engineered for Climate® Non‐Combustible Insect & Pest Resistant Impact Resistant Lasting Beauty & Endless Design Possibilities Combines Lasting Be
Slide 20: Introducing Hardie Textured Panels
Page 20 James Hardie Investor Day 2021 1 Exterior Cladding Material used in New Construction (NAHBNow, 2020) INTRODUCING HARDIE® TEXTURED PANELS FY22 AND BEYOND: PROFITABLE ORGANIC GLOBAL GROWTH VIA INNOVATION Market Driven Innovation Expands Opportunities for Organic Growth 51% 49% External Claddin
Slide 21: Introducing Hardie Fine Texture Cladding
Page 21 James Hardie Investor Day 2021 APAC1 41% 59% Hardie® Multi-Groove Panel INTRODUCING HARDIE™ FINE TEXTURE CLADDING Market Driven Innovation Expands Opportunities for Organic Growth FY22 AND BEYOND: PROFITABLE ORGANIC GLOBAL GROWTH VIA INNOVATION External Cladding in New Single Family Construc
Slide 22: Summary: A New James Hardie
Page 22 James Hardie Investor Day 2021 SUMMARY: A NEW JAMES HARDIE Drive Sustainable Profitable Growth, Globally • Build on success to date of foundational transformation initiatives started in FY19: 1. World class manufacturing via LEAN to continue to expand margins 2. Closely partner with customer
Slide 23: Growth Through Marketing to Homeowners
Page 23 James Hardie Investor Day 2021 GROWTH THROUGH MARKETING TO HOMEOWNERS TENNESSEE: MODERN FARMHOUSE
Slide 24: Brand Vision
James Hardie Investor Day 2021 Page 24 BRAND VISION Be the top of mind brand that delivers curb appeal to homeowners. Self‐Expression Authenticity Pride & Joy Purposeful Design Sanctuary
Slide 25: Transformation to a Global Consumer Brand
James Hardie Investor Day 2021 Page 25 TRANSFORMATION TO A GLOBAL CONSUMER BRAND • Establishing a direct line of communication with homeowners • Marketing high-value products and solutions • Building a Global consumer brand
Slide 26: Accelerate Our Penetration into Repair and Remodel Segment
James Hardie Investor Day 2021 Page 26 6% 14% 13% 12% 55% Built 1979 or Earlier Built 2000 to 2009 Built 1990 to 1999 Built 1980 to 1989 1 2019 US Census‐Detached Homes (American Housing Survey) Built 2010 or Later Share of Owner‐Occupied Housing by Year Structure Built1 44MM 44 Million Homes That a
Slide 27: Meet Christine: The Homeowner at the Center
James Hardie Investor Day 2021 Page 27 Age: 35-54 HHI: $150K+ Home Value*: $350K - $1MILL *wide range to account for regional nuances MEET CHRISTINE Description: • Married, mother of two • In the process of renovating her home • Creative, imaginative and perfectionist • Cares about how other perceiv
Slide 28: James Hardie's Value to the Homeowner
James Hardie Investor Day 2021 Page 28 JAMES HARDIE’S VALUE TO THE HOMEOWNER • Endless design possibilities to achieve your dream look • Long-lasting beauty • Trusted protection
Slide 29: Integrated Marketing to Christine
James Hardie Investor Day 2021 Page 29 360 INTEGRATED MARKETING TO CHRISTINE PURCHASE AMPLIFICATION CONSIDERATION It’s possible with Homeowner isat the center of our attention DRTV Targeted Digital Media AWARENESS Influencer Content Creation
Slide 30: Examples of Advertisements That Christine Will See
James Hardie Investor Day 2021 Page 30 EXAMPLES OF ADVERTISEMENTS THAT CHRISTINE WILL SEE
Slide 31: Integrated Marketing to Christine
James Hardie Investor Day 2021 Page 31 360 INTEGRATED MARKETING TO CHRISTINE PURCHASE AMPLIFICATION CONSIDERATION It’s possible with Homeowner isat the center of our attention DRTV Targeted Digital Media AWARENESS
Slide 32: Connecting Consumer Demand to Our Customers
James Hardie Investor Day 2021 Page 32 Position our customers to capture consumer demand by enabling contractors to deliver on Christine's dream home exterior. Customer Partnership Customer Training Contractor Events Installation Training CONNECTING CONSUMER DEMAND TO OUR CUSTOMERS Contractor
Slide 33: With James Hardie, It's Possible
James Hardie Investor Day 2021 Page 33 WITH JAMES HARDIE, IT’S POSSIBLE™ • We are just getting started with our multi-year campaign • We are marketing directly to the homeowner to create demand, particularly in the R&R market • Platform to improve on how we innovate and commercialize new products to
Slide 34: Growth Through Global Innovation
Page 34 James Hardie Investor Day 2021 NEW JERSEY: HARDIE® TEXTURED PANELS GROWTH THROUGH GLOBAL INNOVATION
Slide 35: Customer Insights to Innovation Process to Deliver High Impact New Products
James Hardie Investor Day 2021 Page 35 …HIGH IMPACT NEW PRODUCTS Mega Trends Customer Insights Winning Product Concepts Prioritization Product Development Commercialization DISCOVERY CONCEPT FEASIBILITY PRODUCT DEVELOPMENT SCALE UP LAUNCH Stage Gates Urbanization CUSTOMER INSIGHTS TO INNOVATION PROC
Slide 36: Innovation: Leverage Our Global Scale in Fiber Cement and Fiber Gypsum
James Hardie Investor Day 2021 Page 36 INNOVATION: LEVERAGE OUR GLOBAL SCALE IN FIBER CEMENT & FIBER GYPSUM Manufacturing Facilities R&D Facilities Chicago HQ 1. FY21 Full Year volume 2. EU FY21 Full Year Fiber Cement related volume 3. EU FY21 Full Year Fiber Gypsum related volume 789 mmsf1,3 43 mms
Slide 37: Profitable Organic Growth via Innovation
James Hardie Investor Day 2021 Page 37 PROFITABLE ORGANIC GROWTH VIA INNOVATION Trusted Protection & Low Maintenance Engineered for Climate® Non‐Combustible Insect & Pest Resistant Impact Resistant Lasting Beauty & Endless Design Possibilities Combines Lasting Beauty & Endless Design Possibi
Slide 38: Market Driven Innovation Platform
James Hardie Investor Day 2021 Page 38 PROFITABLE ORGANIC GROWTH VIA INNOVATION Market Driven Innovation ‐ Innovation Platform: Innovative products that deliver endless possibilities of design and aesthetics for the homeowner ‐ Superior Performance: Deliver key performance properties of durability,
Slide 39: Introducing Hardie Textured Panels
James Hardie Investor Day 2021 Page 39 Hardie® Smooth Sand Panel Hardie® Multi-Groove Panel INTRODUCING HARDIE® TEXTURED PANELS NEW JERSEY: HARDIE® TEXTURED PANELS
Slide 40: Introducing Hardie Fine Texture Cladding
James Hardie Investor Day 2021 Page 40 Hardie® Smooth Sand Panel Hardie® Multi-Groove Panel Hardie™ Fine Texture Cladding INTRODUCING HARDIE™ FINE TEXTURE CLADDING AUSTRALIA: HARDIE™ FINE TEXTURE CLADDING
Slide 41: Hardie Textured Panels
James Hardie Investor Day 2021 Page 41 HARDIE® TEXTURED PANELS FLORIDA: HARDIE® TEXTURED PANELS
Slide 42: Hardie Textured Panels
James Hardie Investor Day 2021 Page 42 HARDIE® TEXTURED PANELS FLORIDA: HARDIE® TEXTURED PANELS
Slide 43: Hardie Textured Panels
James Hardie Investor Day 2021 Page 43 HARDIE® TEXTURED PANELS OREGON: HARDIE® TEXTURED PANELS
Slide 44: Hardie Fine Texture Cladding
James Hardie Investor Day 2021 Page 44 HARDIE™ FINE TEXTURE CLADDING AUSTRALIA: HARDIE™ FINE TEXTURE CLADDING
Slide 45: Expanding from Functional to Aesthetics
James Hardie Investor Day 2021 Page 45 EXPANDING FROM FUNCTIONAL TO AESTHETICS • Unique look to expand design possibilities • Proprietary factory-applied textures for consistent finish • Improved productivity with fewer trades to manage on the jobsite • James Hardie® 30 year non-prorated warranty
Slide 46: Making the Homeowner the Center of Our Attention
James Hardie Investor Day 2021 Page 46 MAKING THE HOMEOWNER THE CENTER OF OUR ATTENTION REPAIR & REMODEL (NA) Jennifer & Brent Huntington Beach, California, USA Home Value: US$ 850k NEW CONSTRUCTION (NA) San Dee & Cary Portland, Oregon, USA Home Value: US$ 630k REPAIR & REMODEL (APAC) Jane & Matt Il
Slide 47: High Impact Commercialization
James Hardie Investor Day 2021 Page 47 HIGH IMPACT COMMERCIALIZATION >90% Test Selling Market Acceptance in our Target Markets Invest in Marketing to create a New Category Driving Revenue and EBIT growth Higher Price AND Higher Gross Margin % LAUNCHING IN NORTH AMERICA & AUSTRALIA Net Sales Price in
Slide 48: Profitable Organic Growth via Innovation
James Hardie Investor Day 2021 Page 48 PROFITABLE ORGANIC GROWTH VIA INNOVATION Trusted Protection & Low Maintenance Engineered for Climate® Non‐Combustible Insect & Pest Resistant Impact Resistant Lasting Beauty & Endless Design Possibilities Combines Lasting Beauty & Endless Design Possibi
Slide 49: Financial Summary
Page 49 James Hardie Investor Day 2021 FINANCIAL SUMMARY COASTAL: CONTEMPORARY
Slide 50: A New James Hardie: Drive Profitable Growth, Globally
James Hardie Investor Day 2021 Page 50 A NEW JAMES HARDIE: DRIVE PROFITABLE GROWTH, GLOBALLY LEAN Manufacturing Push/Pull & Customer Integration Expand Addressable Market with High Value Products Marketing to Homeowners Market Led Innovation Penetrate Existing and New Segments Lower and More Consist
Slide 51: FY 2022 Guidance and Key Assumptions
Page 51 James Hardie Investor Day 2021 A NEW JAMES HARDIE: FY 2022 GUIDANCE AND KEY ASSUMPTIONS 1 Adjusted Net Income excludes asbestos related expenses and adjustments 2 Adjusted Net Income formerly referred to as Adjusted NOPAT 3 SG&A and R&D investment excludes increases or decreases in stock com
Slide 52: Drive High Value Product Mix
Page 52 James Hardie Investor Day 2021 Maximize Net Sales and Gross Margin • Accelerate Volume Growth • with disciplined price management • and shift mix from low value to high value products: Cemplank® to Hardie® Exteriors where appropriate Hardie® Exteriors with ColorPlus® Technology to gain s
Slide 53: A New James Hardie: Financial Summary
Page 53 James Hardie Investor Day 2021 A NEW JAMES HARDIE: FINANCIAL SUMMARY 1. Step Change In Global Financial Results 2. Drive High Value Product Mix While Accelerating Volume Growth 3. Raised Ebit Margin Targets In All Three Regions 4. Step Change In Operating Cash Flow & Strong Balance Sheet 5.
Slide 54: Closing Comments
Page 54 James Hardie Investor Day 2021 CLOSING COMMENTS NEW YORK: COLONIAL
Slide 55: A New James Hardie: Drive Sustainable Profitable Growth
Page 55 James Hardie Investor Day 2021 A NEW JAMES HARDIE Drive Sustainable Profitable Growth, Globally • Build on success to date of foundational transformation initiatives started in FY19: 1. World class manufacturing via LEAN to continue to expand margins 2. Closely partner with customers via Pus
Slide 56: Question and Answer
Page 56 James Hardie Investor Day 2021 FLORIDA: CAPE COD QUESTION AND ANSWER