James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2016)
18 slides from James Hardie Industries's investor day presentation, Sep 15, 2016
Slide 1: Interiors Overview
INTERIORS OVERVIEW Bill Hogan September 2016 Exhibit 99.6
Slide 2: Agenda
AGENDA INTERIORS OVERVIEW PATH TO 50% SHARE ACHIEVING “++” STRATEGY QUESTIONS
Slide 3: Tile Underlayment Overview
Tile underlayment, most commonly referred to as backerboard, is installed under tile in wet areas Backerboard provides a solid foundation to install the tile and protects the subfloor from moisture and mold Backerboard is most commonly installed on floors and walls (also on countertops in some cases
Slide 4: Tile Market Growth
TILE MARKET GROWTH % of total floor coverings 11.3% 11.4% 12.1% 12.4% 12.6% 13.4% CAGR = 7.2% U.S. ceramic tile volume has increased by ~7.2% p.a. to reach ~2.7 billion square feet in 2015 Ceramic tile has increased its share of the total floor coverings market from ~11% in 2010 to ~13% in 2015 Doll
Slide 5: Construction Drivers
CONSTRUCTION DRIVERS Increased construction activity has driven higher demand for ceramic tile … … but backerboard usage varies significantly by construction segment Higher usage of backerboard in SFNC and R&R segments Lower usage of backerboard in multifamily and commercial segments CAGR = 7.6% CAG
Slide 6: Tile vs. Backerboard Usage
TILE VS. BACKERBOARD USAGE Backerboard is prominent solution over wood subfloors Not used over slab on grade SFNC and R&R Lower usage as backerboard is not used over concrete floors Backerboard used on wet area walls Commercial and multifamily While the tile market is split roughly 50/50 for residen
Slide 7: Types of Tile Underlayment
TYPES OF TILE UNDERLAYMENT Description JH value proposition Example brands Fiber cement Cement board with 90% Portland cement and sand HardieBacker® has a differentiated fiber cement formulation and has been voted the most preferred backerboard by NTCA professional contractors Glass mesh cement Ceme
Slide 8: HardieBacker Positioning
HARDIEBACKER POSITIONING HardieBacker® is the market leader in rigid backerboard Voted most preferred backerboard by NTCA professional contractors in study conducted by Clear Seas Research Only backerboard stocked nationally at both Home Depot and Lowe’s Customers see value in HardieBacker® due to i
Slide 9: Channel Presence
CHANNEL PRESENCE Example companies JH presence Primary customer Segment advantage Big Box JH over-indexes DIY, remodeling contractors, “jack of all trades” Convenience (locations / hours) One-stop-shop for a broad range of items that remodelers buy (fixtures, mirrors, cabinets, etc.) Pro-Tile JH und
Slide 10: Historical Interiors Performance
HISTORICAL INTERIORS PERFORMANCE The Interiors team has consistently accelerated PDG growth since FY14 and must continue to grow PDG to achieve our goal of 50% market share in backerboard FY14: Underperformed FY15: Underperformed FY16: Met goal
Slide 11: Agenda: Path to 50% Share
AGENDA INTERIORS OVERVIEW PATH TO 50% SHARE ACHIEVING “++” STRATEGY QUESTIONS
Slide 12: 50% Share Ambition
50% SHARE AMBITION Our goal is to drive HardieBacker® share to 50% of the backerboard market Current share is estimated to be ~35-40%, with a stronger position in retail than in the pro channel Achieving 50% market share will require growth in both the retail and pro channels HardieBacker® market po
Slide 13: Key Initiatives
KEY INITIATIVES Channel Alignment 2 Maintain high level of engagement in retail channel Expand points of distribution and increase customer intimacy in pro channel Organizational Execution 3 Management focus Attract, develop and retain talent Educating contractors on the value proposition and points
Slide 14: Path to 50% Share
PATH TO 50% SHARE Relative share growth opportunity High Medium Low
Slide 15: Agenda: Achieving ++ Strategy
INTERIORS OVERVIEW PATH TO 50% SHARE ACHIEVING “++” STRATEGY QUESTIONS AGENDA
Slide 16: Vision for Interiors
Drive share of backerboard to 50% Growth required across channels, with most coming from pro VISION FOR INTERIORS 50 + + % share of rigid backer Win underlayments Add adjacencies Enter non-FC underlayment categories to achieve 50% share of total underlayments Develop JH into one of the top 3 compani
Slide 17: Example Categories and Products
EXAMPLE CATEGORIES AND PRODUCTS Prep / underlayment Backerboard Mats Membranes Self-leveling Setting / grout Mortar Grout Accessories Sealants Fasteners Tapes Shower systems Pans / bases Shelves Kits Benches
Slide 18: Agenda: Questions
INTERIORS OVERVIEW PATH TO 50% SHARE ACHIEVING “++” STRATEGY QUESTIONS AGENDA
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