James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (October 2012)
36 slides from James Hardie Industries's investor presentation, Oct 12, 2012
Slide 1: Investor Presentation October 2012
INVESTOR PRESENTATION Exhibit 99.4 October 2012
Slide 2: Disclaimer
DISCLAIMER This Management 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 circulars, invitation
Slide 3: Agenda
AGENDA In this Management Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financial measures included in the Definitions section of this document starting on page 36. The company presents financial measures that it believes are customa
Slide 4: James Hardie: A Growth Focused Company
JAMES HARDIE: A GROWTH FOCUSED COMPANY Annual net sales US$1.2b Total assets US$1.7b Net cash US$265.4m Operations in North America, Asia Pacific and Europe 2,600 employees Market cap US$3.9b S&P/ASX 100 company NYSE ADR listing Note: Net sales, total assets and net cash are at March 2012. Total ass
Slide 5: Group Overview
GROUP OVERVIEW US$ Millions % Comparisons are of the full year of the current fiscal year versus the full year of the prior fiscal year The net operating result excluding asbestos, ASIC expenses, asset impairments and tax adjustments for the full year increased 20% to US$140.4 million FY 2012 FY 201
Slide 6: James Hardie – A World Leader in Fibre Cement
JAMES HARDIE – A WORLD LEADER IN FIBRE CEMENT USA Fibre Cement Products Siding Soffit Fascia Trim Backerboard Asia Pacific Fibre Cement Products Residential siding Commercial exteriors Flooring Ceiling and internal walls
Slide 7: Global - Business Portfolio
GLOBAL - BUSINESS PORTFOLIO 77% 67% 33% 23% 70% 30% * EBIT – Excludes Research and Development EBIT and Asbestos-related items USA and Europe Fibre Cement Asia-Pacific Fibre Cement Volume Sales EBIT*
Slide 8: Fibre Cement – Superior Product Performance
FIBRE CEMENT – SUPERIOR PRODUCT PERFORMANCE Fibre cement is more durable than wood and engineered wood, and looks and performs better than vinyl, and cheaper and quicker to build with than brick Fire resistant Hail resistant Resists warping Resists buckling Colour lasts longer Dimensional stability
Slide 9: Product Leadership Example – HardieZone System
PRODUCT LEADERSHIP EXAMPLE – HARDIEZONE™ SYSTEM Generation versus 2 Generation generic fibre cement The HardieZone™ System represents a logical extension of Hardie technology th nd
Slide 10: The USA Business – Largest Fibre Cement Producer in North America
THE USA BUSINESS – LARGEST FIBRE CEMENT PRODUCER IN NORTH AMERICA Flat Sheet Plants Capacity (mmsf) Plants operating Cleburne, Texas Peru, Illinois Plant City, Florida Pulaski, Virginia Reno, Nevada Tacoma, Washington Waxahachie, Texas Plants suspended Blandon, Pennsylvania Fontana, California Summe
Slide 11: US Exterior Cladding Market
US EXTERIOR CLADDING MARKET 17% 15% 6% 24% 38% Note: 1) Market share figures reflect siding only; exclude fascia, soffits & trim; data reflects Repair & Remodel and New Construction markets, combined. 2) Siding volumes exclude waste factors, a change from previously reported numbers. Sources: NAHB B
Slide 12: USA Fibre Cement
USA FIBRE CEMENT Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau Top Line Growth
Slide 13: USA and Europe Fibre Cement
USA AND EUROPE FIBRE CEMENT Excludes impairment charges of US$45.6 million in Q4 FY08 and US$14.3 million in Q4 FY12 EBIT and EBIT Margin EBIT EBIT Margin FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Slide 14: USA and Europe Fibre Cement
USA AND EUROPE FIBRE CEMENT Average Net Sales Price (US dollars) FY06 FY07 FY08 FY09 FY10 FY11 FY12 US$647
Slide 15: Total USA Housing Starts – US Census
TOTAL USA HOUSING STARTS – US CENSUS Source: US Census Bureau - New Privately-Owned Housing Units Started -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% -1200 -1000 -800 -600 -400 -200 U.S. Housing Starts Calendar Quarters Housing starts %Growth (same QtrPY)
Slide 16: Asia Pacific Fibre Cement
ASIA PACIFIC FIBRE CEMENT Five manufacturing plants in Asia Pacific Net sales US$376m EBIT US$80m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities. Net Sales and EBIT as at March 2012.
Slide 17: Asia Pacific Fibre Cement – Examples
ASIA PACIFIC FIBRE CEMENT – EXAMPLES General purpose flooring Exterior cladding Philippines New Zealand Australia Ceilings and partitions Interior walls Australia
Slide 18: Capital Management
CAPITAL MANAGEMENT A dividend of US38.0 cents per security was paid on July from FY2012 earnings. The total amount of the dividend was US$166.4 million The full year dividend from FY2012 earnings was US42.0 cents per security. The full year dividend was at the top end of the dividend payout ratio of
Slide 19: Group Outlook
GROUP OUTLOOK United States Some encouraging industry data points continued to emerge during the quarter, including increased stability of house values in recent months Early stages of a recovery in residential market appears to be underway The extent and rate of improvement, however, is uncertain C
Slide 20: Summary
SUMMARY We have a strong, well-established, growth-focused, strong cash-generating and high return business We have a sustainable competitive advantage Our model for strong growth is based on: – Large market opportunity – Superior value proposition – Proprietary and/or protected technology – Ongoing
Slide 21: Appendix
APPENDIX
Slide 22: Global Strategy
GLOBAL STRATEGY Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Introduce differentiated products to deliver a sustainable competitive advantage Industry leadership and profitable growth
Slide 23: Key Ratios
* KEY RATIOS * Certain reclassifications have been reflected in the prior period shown above to conform with current period presentation Excludes asbestos adjustments, AICF SG&A expenses, AICF interest income, gain or impairment on AICF investments, tax benefits related to asbestos adjustments, ASIC
Slide 24: USA and Europe Year Results Overview
USA AND EUROPE 5 YEAR RESULTS OVERVIEW FY07 FY08 FY09 FY10 FY11 FY12 Net Sales US$m 1,262 1,144 Sales Volume mmsf 2,148 1,916 1,508 1,303 1,248 1,332 Average Price US$ per msf EBIT US$m EBIT Margin %
Slide 25: Asia Pacific Year Results Overview
ASIA PACIFIC 5 YEAR RESULTS OVERVIEW FY07 FY08 FY09 FY10 FY11 FY12 Net Sales US$m Sales Volume mmsf Average Price US$ per msf EBIT US$m EBIT Margin %
Slide 26: Endnotes
ENDNOTES This Management Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Media Release and Consolidated Financial Statements. Definitions Non-financ
Slide 27: Endnotes (continued)
ENDNOTES (CONTINUED) Sales Volumes mmsf – million square feet, where a square foot is defined as a standard square foot of 5/16” thickness. msf – thousand square feet, where a square foot is defined as a standard square foot of 5/16” thickness. Financial Ratios Gearing Ratio – Net debt (cash) divide
Slide 28: Slide 28
Slide 29: Results – Q1
RESULTS – Q1 US$ Millions Q1 '13 Q1 '12 % Change Net sales 339.7 313.6 Gross profit 110.0 108.2 SG&A expenses (44.3) (45.5) Research & Development expenses (8.4) (7.0) (20) Asbestos adjustments 25.2 (38.2) - EBIT 82.5 17.5 - Net interest expense (expense) 0.2 (1.0) - Other income (expense) 0.4 (1.5)
Slide 30: Non-US GAAP Financial Measures
NON-US GAAP FINANCIAL MEASURES EBIT and EBIT margin excluding asbestos and ASIC expenses Q1 Q1 US$ Millions FY 2013 FY 2012 EBIT $ 82.5 $ 17.5 Asbestos: Asbestos adjustments (25.2) 38.2 AICF SG&A expenses 0.3 0.6 ASIC related expenses 0.1 0.2 EBIT excluding asbestos and ASIC expenses 57.7 56.5 Net s
Slide 31: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) Net operating profit excluding asbestos, ASIC expenses and tax adjustments – Net operating profit excluding asbestos, ASIC expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningfu
Slide 32: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) Non-US GAAP Financial Measures (continued) Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments – Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments is not a measure of financial performance under US
Slide 33: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) Effective tax rate excluding asbestos and tax adjustments – Effective tax rate excluding asbestos and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than effective tax rate. Managem
Slide 34: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) 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 profitability or liquidity. N
Slide 35: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) General corporate costs excluding ASIC expenses and intercompany foreign exchange gain – General corporate costs excluding ASIC expenses and intercompany foreign exchange gain is not a measure of financial performance under US GAAP and should not be conside
Slide 36: INVESTOR
INVESTOR PRESENTATION October 2012
James Hardie Industries — Investor Presentation (October 2012) on 6ix