James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2019)
25 slides from James Hardie Industries's investor day presentation, Sep 16, 2019
Slide 1: Exteriors
Exhibit 99.2 EXTERIORS Sean Gadd, Chief Commercial Officer Johnny Cope, NA Head of Sales1
Slide 2: Agenda
Agenda • Strategy Overview and Change in Approach • Creating Customer Value • Organizational Structure • The Right Product Portfolio • Execution Examples 2
Slide 3: Agenda
Agenda • Strategy Overview and Change in Approach • Creating Customer Value • Organizational Structure • The Right Product Portfolio • Execution Examples 3
Slide 4: Exteriors Strategic Objective
Exteriors Strategic Objective New Construction 35% Market Share 90% Category Share Multifamily Repair & Remodel 4
Slide 5: Changing Market Landscape
Changing Market Landscape • Dealers continue to consolidate greater scale and reach • Competitive landscape • Fragmented builders and contractors Builders Distributors JH & Dealers R&R Contractors Customers 5
Slide 6: A Change in Approach – Pull to Push/Pull
A Change in Approach – Pull to Push/Pull Customers Heavy Pull Focus Push / Pull Organization Separate Commercial Sales, Marketing Team, under one & Segments leader Product Full Exterior Siding Focus Solutions 6
Slide 7: Agenda
Agenda • Strategy Overview and Change in Approach • Creating Customer Value • Organizational Structure • The Right Product Portfolio • Execution Examples 7
Slide 8: How James Hardie Creates Customer Value
How James Hardie Creates Customer Value Ease of Working Product Growth Doing Capital Leadership Business • Demand • Supply chain • Full product •Improved Creation integration portfolio partnership • All segments • Product mix • New products • Win-win approach approach • All home types • End user •Cu
Slide 9: Single Family New Construction - Push-Pull (Part 1)
Single Family New Construction - Push-Pull (Part 1) • Hardie gets established in top price bands via market development pull approach Hardie getting established Still following the old standard PULL: Win With Color (Hardie Focus) • Segment Target Position • Overcome switching barriers and costs • Le
Slide 10: Single Family New Construction - Push-Pull (Part 2)
Single Family New Construction - Push-Pull (Part 2) • Partnering with channel customers enables and accelerates “closing out” price bands Hardie and customer partners setting the new standard Still following the old standard PUSH: Win With Color (Customer Partnering) • Products on ground • Alignment
Slide 11: Repair & Remodel: Low-S - Push-Pull (Part 1)
Repair & Remodel: Low-S - Push-Pull (Part 1) • Hardie sets up aligned market-mover contractors (Boats) in key target neighborhoods (Vinyl Battlegrounds) • Vinyl Battlegrounds generally are adjacent to “lockdown” neighborhoods PULL: Win With Color (Hardie Focus) • Right Neighborhood • Right Contracto
Slide 12: Repair & Remodel: Low-S - Push-Pull (Part 2)
Repair & Remodel: Low-S - Push-Pull (Part 2) • Integration with our channel partners ensure the wake comes faster and goes to James Hardie PUSH: Win With Color (Customer Partnering) • Data Sharing & Analytics • Right Products Available in Market • Joint Contractor Targeting & Growth Plans • Co-marke
Slide 13: High-S: Account Management
High-S: Account Management • In High-S we are the market Wood-Look Cladding Split standard In Selected High-S Regions • Account management is critical for both new construction and R&R − Grow by partnering with our customers to take share from like alternatives − Grow by partnering with our customer
Slide 14: Agenda
Agenda • Strategy Overview and Change in Approach • Creating Customer Value • Organizational Structure • The Right Product Portfolio • Execution Examples 14
Slide 15: Organization: Commercial Structure
Organization: Commercial Structure Market Development Dedicated Hunters • Setting up Commercial team for clarity of direction and alignment from strategy to field execution • Double down on exteriors market development (demand creation/pull), funded by interiors alternative approach • Account manage
Slide 16: Agenda
Agenda • Strategy Overview and Change in Approach • Creating Customer Value • Organizational Structure • The Right Product Portfolio • Execution Examples 16
Slide 17: The Right Product Portfolio
The Right Product Portfolio High Paint Cost Markets Low Paint Cost Markets Luxury 2nd Move-Up Starter Homes 17
Slide 18: Broad Product Portfolio: Complete Exterior
Broad Product Portfolio: Complete Exterior 18
Slide 19: Win With Color: Enabling Further Penetration
Win With Color: Enabling Further Penetration • Leverage scale and manufacturing technology to deliver lower total installed cost to drive accelerated penetration, whilst offering greater choice for consumers who are willing to pay JH Manufacturing Channel Customers Install Partners Lower • Longer ru
Slide 20: Agenda
Agenda • Strategy Overview and Change in Approach • Creating Customer Value • Organizational Structure • The Right Product Portfolio • Execution Examples 20
Slide 21: Boston, MA - New Construction Market Development
Boston, MA - New Construction Market Development Win With Color • New Construction conversion from vinyl • Delivered by reducing on-the-wall costs 21
Slide 22: Boston, MA - R&R Market Development
Boston, MA - R&R Market Development Win With Color • Target neighborhood • Converted vinyl via aligned contractor • Followed up with “2-10” activity 22
Slide 23: Boise, ID - Win Against Engineered Wood
Boise, ID - Win Against Engineered Wood Account Management • Partnering with our customer to convert a large builder from engineered wood • Securing multiple stocking positions • Leading to more builder conversions 23
Slide 24: Dallas, TX—James Hardie Full Wrap Initiative
Dallas, TX—James Hardie Full Wrap Initiative Account Management • Partnering with our customer to convert a builder to use our trim and soffit in addition to our plank 24
Slide 25: Summary: Executing The Strategy, Gaining Momentum
Summary: Executing The Strategy, Gaining Momentum Customers • Partnering with our channel customers Heavy Pull Focus Push / Pull to capture share in the tail • Doubling down on pull-through market development Organization • Aligned sales, product & segment Separate Commercial strategy and marketing
James Hardie Industries — Investor Day (September 2019) on 6ix