James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2022)
135 slides from James Hardie Industries's investor day presentation, Sep 13, 2022
Slide 1: JHX Investor Day 2022 – Day 2
For personal use only JHX Investor Day 2022 Page 1 New York, 12-13 September 2022 – Day 2
Slide 2: Cautionary Note on Forward-Looking Statements
James Hardie Investor Day 2022 CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS For personal use only This Management Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie I
Slide 3: Agenda – Day 2
James Hardie Investor Day 2022 AGENDA – DAY 2 ZIEGFELD BALLROOM Day 2 – Tuesday, September 13th For personal use only Breakfast 7:00-8:00 AM All APAC 8:00-9:15 AM John Arneil & Travis Johnson Q&A 9:15-9:30 AM All Experience Session #1 9:30-10:00 AM Breakout Groups Break 10:00-10:15 AM All Tobias Ben
Slide 4: Investor Day 2022 – APAC
For personal use only INVESTOR DAY 2022 – APAC Page 4
Slide 5: APAC – Presenters
James Hardie Investor Day 2022 APAC – PRESENTERS For personal use only John Arneil Travis Johnson General Manager Director – Commercial APAC Australia Page 5
Slide 6: Agenda – APAC
James Hardie Investor Day 2022 AGENDA For personal use only Investor Day 2022 – APAC Topic Presenter APAC Overview John Arneil Value Chain John Arneil Homeowner John Arneil Contractor/Builder Travis Johnson Customer Travis Johnson Summary John Arneil Page 6
Slide 7: APAC – Summary
James Hardie Investor Day 2022 APAC – SUMMARYJUST BEGUN For personal use only Strong base business built over 40+ years in fiber cement with significant fiber cement market share and category share Significant growth opportunities exist in all our APAC regions We have the insight led innovation, con
Slide 8: APAC: Overview
For personal use only INVESTOR DAY 2022 – APAC: OVERVIEW John Arneil, General Manager - APAC Page 8
Slide 9: APAC – A Sustainable Profitable Growth Business
James Hardie Investor Day 2022 APAC – A SUSTAINABLE PROFITABLE GROWTH BUSINESS For personal use only Drive Profitable Global Growth 10 Year CAGR 10 Year CAGR 1 Market to Homeowners to Create Demand Net Sales EBIT$ 2 Penetrate and Drive Profitable Growth in Existing and New Segments 3 Commercialize G
Slide 10: APAC – Strong Share in All APAC Markets with Room to Grow
James Hardie Investor Day 2022 APAC – STRONG SHARE IN ALL APAC MARKETS WITH ROOM TO GROW For personal use only QUEENSLAND+ NSW+ VICTORIA+ 29% FC share 21% FC share 19% FC share Australia NEW ZEALAND+ 32% FC share FC New Zealand Wood Look Brick Render PHILIPPINES+ 61% FC share FC Gypsum SF + R&R Phil
Slide 11: APAC – A Clear, Targeted Game Plan for Growth
James Hardie Investor Day 2022 APAC – A CLEAR, TARGETED GAME PLAN FOR GROWTH Region How For personal use only 1. Queensland - Australia - Hamptons/Coastal – Axon™, Linea™ • Leverage strong position for adjacent - Modern - Hardie™ Architectural Collection modern construction - R&R interiors – Secura™
Slide 12: ANZ – Design Trends Favorable to High Value Growth
James Hardie Investor Day 2022 ANZ – DESIGN TRENDS FAVORABLE TO HIGH VALUE GROWTH 23% JH share HAMPTONS / For personal use only MODERN CONVENTIONAL COASTAL FY22 Look Market 23% Market 46% Market 31% Share JH 15% JH 6% JH 2% • Hardie Axon Cladding Hardie Architectural Collection Hardie Fine Texture C
Slide 13: APAC Product Overview
James Hardie Investor Day 2022 APAC PRODUCT OVERVIEW For personal use only JH Innovation Hardie™ Fine Texture Cladding JH High Value Exteriors Linea™ Weatherboard Stria™ Cladding Matrix™ Cladding Axon™ Cladding Oblique™ Cladding Secura™ Exterior Flooring JH High Value Interiors Hardie™ Groove Lining
Slide 14: ANZ – Innovation Focus on Further Unlocking Modern Look
James Hardie Investor Day 2022 ANZ – INNOVATION FOCUS ON FURTHER UNLOCKING MODERN LOOK For personal use only Hardie™ Fine Texture Cladding – well positioned in Hardie™ Architectural Collection – unlocking single modern uppers and against render storey and lowers of double storey Page 14
Slide 15: ANZ – Expanding Oblique to Australia
James Hardie Investor Day 2022 ANZ - EXPANDING OBLIQUE™ TO AUSTRALIA For personal use only Hardie™ Oblique™ - proven in NZ - validated in AU - refined and ready to scale Page 15
Slide 16: ANZ – Driving a High Value Product Mix with Customers
James Hardie Investor Day 2022 ANZ – DRIVING A HIGH VALUE PRODUCT MIX WITH CUSTOMERS ANZ Product Mix Before For personal use only After FY22 FY23 Projected Future State JH Core JH High Value Interiors JH High Value Exteriors JH Innovation Page 16
Slide 17: APAC: Value Chain Overview
For personal use only APAC: VALUE CHAIN OVERVIEW John Arneil, General Manager - APAC Page 17
Slide 18: ANZ – How We Get to Market
James Hardie Investor Day 2022 ANZ – HOW WE GET TO MARKET For personal use only Partnering With Working Closely With Supporting Architects Marketing Directly to Customers Contractors/Builders and Designers Homeowners Page 18
Slide 19: ANZ – How We Influence Across the Value Chain
James Hardie Investor Day 2022 ANZ – HOW WE INFLUENCE ACROSS THE VALUE CHAIN Architect/ For personal use only Customer Builder Homeowner Designer SF New Construction Force Multiplier via Perfect SF Knock Down Rebuild Store Small-Medium Design Led Architect Builder Volume Builder JH 1:1 JH 1:Many Exp
Slide 20: APAC: Influencing Homeowner
For personal use only INVESTOR DAY 2022 – APAC: INFLUENCING HOMEOWNER John Arneil, General Manager - APAC Page 20
Slide 21: For personal use only
For personal use only Page 21
Slide 22: ANZ – How We Influence Across the Value Chain
James Hardie Investor Day 2022 ANZ – HOW WE INFLUENCE ACROSS THE VALUE CHAIN Architect/ For personal use only Customer Builder Homeowner Designer SF New Construction SF Knock Down Rebuild Architect JH 1:Many Renovating / Additions Experienced Designer Inexperienced Contractor/Builder Contractor/Buil
Slide 23: ANZ – Consumer Marketing to Drive Growth
James Hardie Investor Day 2022 ANZ – CONSUMER MARKETING TO DRIVE GROWTH For personal use only Market to Homeowners to • “Purposeful Modern Home Design” campaign in key geographies • Amplify “The Block” partnership 1 Create Demand (PULL) • Accelerate her path to purchase and generate leads High Value
Slide 24: AU – Purposeful Modern Design Campaign In-Market
James Hardie Investor Day 2022 AU – PURPOSEFUL MODERN DESIGN CAMPAIGN IN-MARKET For personal use only Digital BVOD Paid Social Posts Targeted Digital Media Digital Retargeting Assets Modern Look Book Page 24
Slide 25: ANZ – Build Out and Amplify a Virtual Showroom
James Hardie Investor Day 2022 ANZ – BUILD OUT AND AMPLIFY A VIRTUAL SHOWROOM FOR MODERN HOMES For personal use only Page 25
Slide 26: AU – Campaign Performance and Impact
James Hardie Investor Day 2022 AU - CAMPAIGN PERFORMANCE AND IMPACT For personal use only CAMPAIGN METRICS (topline findings only) Key campaign metrics across the funnel (Homeowners only) BRAND IMPACT Brand funnel health 3 in 4 Homeowners recall seeing the “Its MESSAGE Possible” campaign Main messag
Slide 27: AU – The Block 2022
James Hardie Investor Day 2022 AU – THE BLOCK 2022 For personal use only Eastern seaboard >2021 saw 11.4 High proportion audience million viewers of audience is location: 82% (40%+ of AU Christine: 55% NSW, QLD, VIC population) aged 25-54 and 76% metro. 60% women Page 27 Source: Nine Entertainment C
Slide 28: For personal use only
For personal use only Page 28
Slide 29: APAC: Driving Demand in SFNC with the Builder
For personal use only APAC: DRIVING DEMAND IN SFNC WITH THE BUILDER Travis Johnson, Director - Commercial Australia Page 29
Slide 30: ANZ – 1:1
James Hardie Investor Day 2022 ANZ – 1:1 Architect/ For personal use only Customer Builder Homeowner Designer Small-Medium Design Led Architect Builder Volume Builder JH 1:1 Page 30
Slide 31: ANZ – Driving Demand with Builders
James Hardie Investor Day 2022 ANZ – DRIVING DEMAND WITH BUILDERS Transforming the Way Australia Builds For personal use only ABN Group Coral Homes Rawson Homes Metricon NXT Building Group Page 31
Slide 32: ANZ – 1:1 Co-Creation with Top SFNC Builder
James Hardie Investor Day 2022 ANZ – 1:1 CO-CREATION WITH TOP 20 SFNC BUILDER For personal use only Takes insight selling beyond converting current to co-creating new home ranges together Meeting the needs of the consumer Using experts to create market leading Full HardieTM exteriors Maximise the be
Slide 33: APAC: Enabling Our Customers to Drive Growth with Builders
For personal use only APAC: ENABLING OUR CUSTOMERS TO DRIVE GROWTH WITH BUILDERS Travis Johnson, Director - Commercial Australia Page 33
Slide 34: ANZ – Influencing the Customer and Builder via the Perfect Store
James Hardie Investor Day 2022 ANZ – INFLUENCING THE CUSTOMER AND BUILDER VIA THE PERFECT STORE Architect/ For personal use only Customer Builder Homeowner Designer Small-Medium Builder Force Multiplier via Perfect Store Experienced Inexperienced Contractor/Builder Contractor/Builder Page 34
Slide 35: ANZ – The Perfect Store
James Hardie Investor Day 2022 ANZ – THE PERFECT STORE For personal use only Perfect Store is the James Hardie™ customer blueprint on How to Win Small Architect/ Builder Designer Page 35
Slide 36: ANZ – Keeping Customers Stocked with the Right Range
James Hardie Investor Day 2022 ANZ – KEEPING CUSTOMERS STOCKED WITH THE RIGHT RANGE IS OUR #1 PRIORITY For personal use only RIGHT RANGE Collaborate Planning and Forecasting Set the Range Set Min & Check and Adjust Max Stock Levels Right Range to the Right Keeping customers stocked Customer at the R
Slide 37: ANZ – Simplifying the Selection Process Through the Right Display
James Hardie Investor Day 2022 ANZ – SIMPLIFYING THE SELECTION PROCESS THROUGH THE RIGHT DISPLAY For personal use only Right Displays - NEW Modern Look Displays Page 37
Slide 38: ANZ – New Modern Look Displays
James Hardie Investor Day 2022 ANZ – NEW MODERN LOOK DISPLAYS For personal use only Right Displays - Cubby Displays Right Displays – Façade Displays Page 38
Slide 39: ANZ – Scalable Execution of Push with Customers
James Hardie Investor Day 2022 ANZ – SCALABLE EXECUTION OF PUSH WITH CUSTOMERS Right Events - Mobile Construction Clinics Trailers For personal use only Right Events - Hardie™ containers 10,000 builders targeted across FY23 Page 39
Slide 40: APAC: Summary
For personal use only APAC: SUMMARY John Arneil, General Manager - APAC Page 40
Slide 41: APAC – Summary
James Hardie Investor Day 2022 APAC – SUMMARYJUST BEGUN For personal use only Strong base business built over 40+ years in fiber cement with significant fiber cement market share and category share Significant growth opportunities exist in all our APAC regions We have the insight led innovation, con
Slide 42: Q&A
For personal use only Page 42 Q&A
Slide 43: Experience Session #1
For personal use only EXPERIENCE SESSION #1 Page 43
Slide 44: Break
For personal use only 15 MINUTE BREAK Page 44
Slide 45: Investor Day 2022 – Europe
For personal use only INVESTOR DAY 2022 – EUROPE Page 45
Slide 46: Presenters
James Hardie Investor Day 2022 PRESENTERS For personal use only Tobias Bennerscheidt Henning Risse Director Marketing Sales Director – & Segments – Europe Europe Page 46
Slide 47: Agenda – Europe
James Hardie Investor Day 2022 AGENDA For personal use only Investor Day 2022 – Europe Topic Presenter Europe Overview Tobias Bennerscheidt Fiber Gypsum Growth Henning Risse Fiber Cement Growth Tobias Bennerscheidt Page 47
Slide 48: Europe – Summary
James Hardie Investor Day 2022 EUROPE – SUMMARY For personal use only Europe’s long term ambition remains unchanged at €1 billion in Net Sales and 20+% EBIT Margin Clear path to €500 million of Fiber Gypsum Net Sales with proven track record Two key Fiber Cement growth opportunities to take a signif
Slide 49: Europe – Long Term Ambition Unchanged
James Hardie Investor Day 2022 EUROPE – LONG TERM AMBITION UNCHANGED For personal use only Revenue EBIT Margin € 1.0 Bn 20+% Page 49
Slide 50: Europe: Overview
For personal use only EUROPE: OVERVIEW Tobias Bennerscheidt, Director Marketing & Segments Page 50
Slide 51: Europe Long Term Ambition Unchanged: €1 Billion Net Sales at 20+% Margin
James Hardie Investor Day 2022 EUROPE LONG TERM AMBITION UNCHANGED: € 1BILLION NET SALES AT 20+% MARGIN For personal use only Drive Profitable Global Growth Europe Path to € 1BN at 20+% Margin 1 Market to Homeowners to Create Demand 2 Penetrate and Drive Profitable Growth in Existing and New Segment
Slide 52: Europe Long Term Ambition on Track Through First Four Fiscal Years
James Hardie Investor Day 2022 EUROPE LONG TERM AMBITION ON TRACK THROUGH FIRST FOUR FISCAL YEARS Historical Europe Net Sales For personal use only Original €1Bn Roadmap vs. Actuals (€ Millions) Fiber Gypsum (€ M) Fiber Cement (€ M) 422 397 365 65 To Reach 343 352 336 74 Last 4 years €500M by 320 32
Slide 53: Europe: Fiber Gypsum Growth
For personal use only EUROPE: FIBER GYPSUM GROWTH Henning Risse, Sales Director – Europe Page 53
Slide 54: Clear Path to €500 Million in Fiber Gypsum Net Sales
James Hardie Investor Day 2022 CLEAR PATH TO €500 MILLION IN FIBER GYPSUM NET SALES Historical Fiber Gypsum Net Sales (€ Millions) For personal use only 357 286 293 306 FY19 FY20 FY21 FY22 ▪ 2004-17: 5.4% Net Sales CAGR ▪ Last 4 years; 7% Net Sales CAGR with clear, proven strategy to get to €500 mil
Slide 55: Fiber Gypsum Product Summary
James Hardie Investor Day 2022 FIBER GYPSUM PRODUCT SUMMARY Product For personal use only Application Flooring Elements for Renovation fermacell® Flooring Element Renovation Application Wall Board for Pre-Fabrication fermacell® Large Format Wall Boards Pre-Fabrication Application Wall Board for Dry
Slide 56: Selected Growth Opportunities in Fiber Gypsum
James Hardie Investor Day 2022 SELECTED GROWTH OPPORTUNITIES IN FIBER GYPSUM Pre-Fabrication Timber Frame Market (€ M) Addressable Flooring Renovation Market (€ M) JHEU Other FG PB+OSB Other For personal use only JHEU Other FG Other Dry Screed Wet screed Switzerland Switzerland Austria Poland Austri
Slide 57: Launch of Flooring Innovation to Enable Growth in New Applications
James Hardie Investor Day 2022 LAUNCH OF FLOORING INNOVATION TO ENABLE GROWTH IN NEW APPLICATIONS For personal use only ▪ Main Fiber Gypsum product for renovation is fermacell® flooring Opening new markets for fermacell thanks to ▪ In the past JHEU did not offer a competitive innovations solution fo
Slide 58: Europe – Fiber Gypsum Summary
James Hardie Investor Day 2022 EUROPE – FIBER GYPSUM SUMMARY For personal use only Clear path to €500 million of Fiber Gypsum Net Sales with proven track record of >5% CAGR Two substantial growth opportunities in Pre-Fabrication and Flooring New innovation (Therm25) for significant under floor heati
Slide 59: Europe: Fiber Cement Growth
For personal use only EUROPE: FIBER CEMENT GROWTH Tobias Bennerscheidt, Director Marketing & Segments Page 59
Slide 60: Innovation Building the Path to €500 Million in Fiber Cement Net Sales
James Hardie Investor Day 2022 INNOVATION BUILDING THE PATH TO €500 MILLION IN FIBER CEMENT NET SALES Fiber Cement Plank: €120 - €150 Million in Net Sales For personal use only (from FY22 Net Sales of €38 Million) Fiber Cement Panel: €180 - €230 Million in Net Sales (from FY22 Net Sales of €4 Millio
Slide 61: Lap Siding and Interlock Siding
James Hardie Investor Day 2022 LAP SIDING AND INTERLOCK SIDING For personal use only Page 61
Slide 62: Significant Fiber Cement Growth Potential in Plank Market
James Hardie Investor Day 2022 SIGNIFICANT FIBER CEMENT GROWTH POTENTIAL IN PLANK MARKET European Plank Market ∑ ~ €660 Million For personal use only JH Competitive FC Wood Other Plank Growth Strategy 1 Deliver Full Plank portfolio with innovation of Hardie® VL Plank product 2 Win Category Share vs
Slide 63: Hardie VL Plank – Winning Category Share
James Hardie Investor Day 2022 HARDIE® VL PLANK – WINNING CATEGORY SHARE For personal use only Winning Share vs Fiber Cement Competition ▪ At least 20% faster installation ▪ Most natural wood look ▪ IP protected ▪ Durability and low maintenance: − James Hardie proven Fiber Cement substrate − ColorPl
Slide 64: For personal use only
For personal use only Page 64
Slide 65: Social Media Strategy Driving Installer Lead Generation
James Hardie Investor Day 2022 SOCIAL MEDIA STRATEGY DRIVING INSTALLER LEAD GENERATION… For personal use only Gut. Einfach. Schnell. Hardie® VL Plank Easy. Fast. Better. Hardie VL facade cladding wins Bestill varepover i dag. Du far en gratis sompisto til Fassadenverkleidungen. Überzeugen Sie sich u
Slide 66: Turning These Leads into Business Together with Customers
James Hardie Investor Day 2022 ...TURNING THESE LEADS INTO BUSINESS TOGETHER WITH CUSTOMERS… For personal use only Execution of push/pull strategy: converting installer leads into sales for our customers Page 66
Slide 67: Leading to New Projects with Hardie VL Plank in Europe
James Hardie Investor Day 2022 …LEADING TO NEW PROJECTS WITH HARDIE® VL PLANK IN EUROPE For personal use only Hardie® VL Plank helped drive Fiber Switzerland United Kingdom Cement growth of 41% in FY22 over FY21 Netherlands Germany Page 67
Slide 68: Hardie Panel
For personal use only Page 68 Hardie® Panel
Slide 69: Significant Growth Opportunity in European Panel Market
James Hardie Investor Day 2022 SIGNIFICANT GROWTH OPPORTUNITY IN EUROPEAN PANEL MARKET European Panel Market ∑ ~ € 1.6 Billion ▪ Large addressable market of ~€1.6 Billion For personal use only JH Other FC HPL Metal Stone Panel Other annually ▪ Fiber Cement is a proven and accepted technology in this
Slide 70: James Hardie Right to Win in European Panel Market
James Hardie Investor Day 2022 JAMES HARDIE RIGHT TO WIN IN EUROPEAN PANEL MARKET ▪ World leader in Fiber Cement – entering a market with For personal use only high Fiber Cement acceptance ▪ James Hardie Fiber Cement with A2 Fire rating ▪ James Hardie offers the low cost solution, delivering cost sa
Slide 71: Launching Hardie Architectural Panel in Europe in September 2022
James Hardie Investor Day 2022 LAUNCHING HARDIE® ARCHITECTURAL PANEL IN EUROPE IN SEPTEMBER 2022 Design Flexibility For personal use only A choice of ‘Smooth Sand’ or ‘Brushed Concrete’1 textures will enable you to build modern, contemporary designs. A2 Fire Rating James Hardie™ is the global leader
Slide 72: Leveraging Insights to Develop Textures for the Panel Market
James Hardie Investor Day 2022 LEVERAGING INSIGHTS TO DEVELOP TEXTURES FOR THE PANEL MARKET For personal use only Page 72
Slide 73: A2 Fire Rated
James Hardie Investor Day 2022 A2 FIRE RATED For personal use only James Hardie products are A2 rated, meeting the required standards in each London, UK, Jun 2017 country we operate in UK fire safety regulations have banned combustible materials in high rise projects over 18 meters1 We anticipate si
Slide 74: Lowest on the Wall Cost
James Hardie Investor Day 2022 LOWEST ON THE WALL COST Comparison of Total On The Wall Cost of Panel Applications For personal use only 130 ~125 125 On The Wall Cost – Indexed to 100 120 We are the Low Cost ~118 Solution for a Large ~116 115 ~115 Market Opportunity in Panel Applications 110 ~107 105
Slide 75: Europe – Fiber Cement Summary
James Hardie Investor Day 2022 EUROPE – FIBER CEMENT SUMMARY For personal use only Proven capability to launch innovation successfully (Hardie® VL Plank) Two key Fiber Cement growth opportunities to take significant step toward €500 million in Fiber Cement Net Sales New innovation Hardie® Architectu
Slide 76: Europe – Summary
James Hardie Investor Day 2022 EUROPE – SUMMARY For personal use only Europe’s long term ambition remains unchanged at €1 billion in Net Sales and 20+% EBIT Margin Clear path to €500 million of Fiber Gypsum Net Sales with proven track record Two key Fiber Cement growth opportunities to take a signif
Slide 77: Q&A
For personal use only Page 77 Q&A
Slide 78: Experience Session #2
For personal use only EXPERIENCE SESSION #2 Page 78
Slide 79: Lunch
For personal use only 75 MINUTE LUNCH Page 79
Slide 80: Investor Day 2022 – Global Innovation
For personal use only INVESTOR DAY 2022 – GLOBAL INNOVATION Page 80
Slide 81: Global Innovation – Presenters
James Hardie Investor Day 2022 GLOBAL INNOVATION – PRESENTERS For personal use only Dr. Joe Liu Dr. Alan Miller Chief Technology Officer Director, Global Innovation - Europe Page 81
Slide 82: Agenda – Global Innovation
James Hardie Investor Day 2022 AGENDA For personal use only Investor Day 2022 – Global Innovation Topic Presenter Innovation Approach Joe Liu Global Technologies Joe Liu and Capabilities Innovation Driving Alan Miller Future Growth Page 82
Slide 83: Global Innovation – Summary
James Hardie Investor Day 2022 GLOBAL INNOVATION – SUMMARY For personal use only Targeted innovation approach driven by mega trends and customer insights that inform our innovation process James Hardie has the capability to deliver innovations through our Global technologies and unique capabilities
Slide 84: Global Innovation: Innovation Approach
For personal use only GLOBAL INNOVATION: INNOVATION APPROACH Joe Liu, Chief Technology Officer Page 84
Slide 85: Innovation – A Critical Element to Our Strategy
James Hardie Investor Day 2022 INNOVATION - A CRITICAL ELEMENT TO OUR STRATEGY For personal use only Drive Profitable Global Growth Innovation is important to help continue to drive Profitable Global Growth Page 85
Slide 86: Our Innovation Continues to Build on Global Mega Trends
James Hardie Investor Day 2022 OUR INNOVATION – CONTINUES TO BUILD ON GLOBAL MEGA TRENDS Mega Trends Implications JH Positioning and Plans For personal use only ▪ Pre-finished color and textures ▪ Need for increased productivity ▪ Systems approach to solutions ▪ On-the-wall cost challenge ▪ Fiber ce
Slide 87: Our Innovation – Consumer-Focused & Customer-Driven with the Insights
James Hardie Investor Day 2022 OUR INNOVATION – CONSUMER-FOCUSED & CUSTOMER-DRIVEN WITH THE INSIGHTS James Hardie Insights to Innovation process For personal use only Implementation Early Discovery Idea/Concept Feasibility Development Launch • Trends/Foresights • Short and longer-term • Prioritize m
Slide 88: Our Portfolio of Innovation Covers Both Core & New Platforms
James Hardie Investor Day 2022 OUR PORTFOLIO OF INNOVATION COVERS BOTH CORE & NEW PLATFORMS (Examples) For personal use only FC – High value New Platforms interiors platform Innovation FC – Hardie® Architectural Collection Core Products FG - Under-floor heating FC – Wood-look exteriors FC: Fiber Cem
Slide 89: Global Innovation: Technologies and Capabilities
For personal use only GLOBAL INNOVATION: TECHNOLOGIES AND CAPABITILITIES Joe Liu, Chief Technology Officer Page 89
Slide 90: Our Global Technologies & Enablers Deliver Innovation
James Hardie Investor Day 2022 OUR GLOBAL TECHNOLOGIES & ENABLERS – DELIVER INNOVATION TO MEET MARKET NEEDS For personal use only Surfaces & Aesthetics Coatings Joining Systems Insights to Innovation Intellectual Property Materials Technology Composites Application Engineering Analytical Labs Page 9
Slide 91: Global Technology Case Study – Surfaces & Aesthetics
James Hardie Investor Day 2022 GLOBAL TECHNOLOGY CASE STUDY – SURFACES & AESTHETICS Consumer / Platform For personal use only Surfaces & Aesthetics Commercialization Customer Insights Texture Design Creation Capability Long-term Strategic Insight Sessions / Modeling Roadmap in Process Capability Pla
Slide 92: Our Capabilities Are Aligned and Leveraged to Deliver Growth Outcomes
James Hardie Investor Day 2022 OUR CAPABILITIES – ARE ALIGNED AND LEVERAGED TO DELIVER GROWTH OUTCOMES For personal use only Functional Capabilities New Platforms Core Products EXTERIORS INTERIORS Fiber Gypsum NA APAC EU Core Core Core Insights to Innovation Surfaces ✓ ✓ ✓ ✓ ✓ Coatings ✓ ✓ ✓ Joining
Slide 93: Global Innovation: Innovation Driving Future Growth
For personal use only GLOBAL INNOVATION: INNOVATION DRIVING FUTURE GROWTH Alan Miller, Director, Global Innovation - Europe Page 93
Slide 94: Aligning Mega Trends and Our Capabilities to Deliver Innovation
James Hardie Investor Day 2022 ALIGNING MEGA TRENDS AND OUR CAPABILITIES TO DELIVER INNOVATION Our Technologies & Mega Trends For personal use only Capabilities Hardie™ Architectural Collection Therm25 Under-floor Heating Page 94
Slide 95: Unlocking the Modern Look with Hardie Architectural Collection
James Hardie Investor Day 2022 UNLOCKING THE MODERN LOOK WITH HARDIE ACHITECTURAL COLLECTION APAC NA EU For personal use only Page 95
Slide 96: Transforming the Under-Floor Heating Market in Europe with Therm25
James Hardie Investor Day 2022 TRANSFORMING THE UNDER-FLOOR HEATING MARKET IN EUROPE WITH THERM25 For personal use only The Innovation: Replacing traditional wet screed process with easy & fast dry FG product The Benefits: Customers/Contractor Home-owner Benefits to every ▪ More profitable vs. wet s
Slide 97: Global Innovation – Summary
James Hardie Investor Day 2022 GLOBAL INNOVATION – SUMMARY For personal use only Targeted innovation approach driven by mega trends and customer insights that inform our innovation process James Hardie has the capability to deliver innovations through our Global technologies and unique capabilities
Slide 98: Q&A
For personal use only Page 98 Q&A
Slide 99: Experience Session #3
For personal use only EXPERIENCE SESSION #3 Page 99
Slide 100: Break
For personal use only 15 MINUTE BREAK Page 100
Slide 101: Investor Day 2022 – Global Capacity
For personal use only INVESTOR DAY 2022 – GLOBAL CAPACITY Page 101
Slide 102: Presenter
James Hardie Investor Day 2022 PRESENTER For personal use only Ryan Kilcullen EVP Operations Page 102
Slide 103: Agenda – Global Capacity
James Hardie Investor Day 2022 AGENDA For personal use only Investor Day 2022 – Global Capacity Topic Presenter JH Operational Advantage Ryan Kilcullen Global Capacity Expansion Strategy Ryan Kilcullen Page 103
Slide 104: Global Capacity – Summary
James Hardie Investor Day 2022 GLOBAL CAPACITY – SUMMARYUN For personal use only Operational scale advantage centered around a network of strategically located plants near our customers & inputs A culture of continuous improvement with clear strategies to enhance our capabilities We have a global ca
Slide 105: Global Capacity: JH Operational Advantage
For personal use only GLOBAL CAPACITY: JH OPERATIONAL ADVANTAGE Ryan Kilcullen, EVP Operations Page 105
Slide 106: Global Manufacturing & Engineering Capabilities
James Hardie Investor Day 2022 GLOBAL MANUFACTURING & ENGINEERING CAPABILITIES For personal use only EU North America APAC World Leader in Fiber Cement Industry Leading Expertise • 14 fiber cement factories globally, 5 fiber gypsum factories in EU • 3 Innovation and R&D centers across the globe • 28
Slide 107: JH Manufacturing Advantage
James Hardie Investor Day 2022 JH MANUFACTURING ADVANTAGE 1 FC Manufacturing Scale Advantage 2 Agile Manufacturing Network 3 High Value Product Capabilities & Scale For personal use only Flexible lines allow us to produce a range of products on each sheet machine Hardie® Backer Board Significant sca
Slide 108: JH Supply Chain Advantage
James Hardie Investor Day 2022 JH SUPPLY CHAIN ADVANTAGE For personal use only 1 Strategically located network of plants • Raw material availability enables proximity to our customers with a local supply chain 2 Responsive to regional shifts in demands • Network footprint enables highly efficient &
Slide 109: Continuous Improvement Opportunities Remain Large
James Hardie Investor Day 2022 CONTINUOUS IMPROVEMENT OPPORTUNITIES REMAIN LARGE For personal use only Hardie® Manufacturing Operating System Integrated Supply Chain Similar opportunities exist in: Building on our Supply Chain Advantage with digital • Total Site Yield (on-going) transformation that
Slide 110: Operational Advantages Summary
James Hardie Investor Day 2022 OPERATIONAL ADVANTAGES SUMMARY For personal use only Significant scale advantage in our Fiber Cement operations James Hardie is the Network of plants that is strategically located near our Customers & inputs world leader in fiber cement & embraces continuous Flexible s
Slide 111: Global Capacity: Global Capacity Expansion Strategy
For personal use only GLOBAL CAPACITY: GLOBAL CAPACITY EXPANSION STRATEGY Ryan Kilcullen, EVP Operations Page 111
Slide 112: An Integrated Strategy to Enable Profitable Growth
James Hardie Investor Day 2022 AN INTEGRATED STRATEGY TO ENABLE PROFITABLE GROWTH For personal use only Key pillars of Global Capacity Expansion strategic plan: 1 Zero Harm foundation Global Scale & Data Driven Partners Best Practices 2 High category share regions: bias to always invest ahead of dem
Slide 113: Global Capacity Expansion
James Hardie Investor Day 2022 GLOBAL CAPACITY EXPANSION Europe Capacity Expansion For personal use only − Fiber Gypsum brownfield expansion in Orejo, Spain (Q4 FY24) − Fiber Cement greenfield expansion (FY26) APAC Capacity Expansion − Carole Park brownfield expansion (Q3 FY23) − Greenfield expansio
Slide 114: North America Capacity Expansion
James Hardie Investor Day 2022 NORTH AMERICA CAPACITY EXPANSION Prattville HLD Trim Finishing Current N. America Capacity Summary: Q2 FY23 For personal use only • Nameplate FC Capacity: 4,626 mmsf High Value • Number of FC Sheet Machines: 21 Product HZ10 Trim • Number of ColorPlus® Lines: 10 Capabil
Slide 115: APAC Capacity Expansion
James Hardie Investor Day 2022 APAC CAPACITY EXPANSION Carole Park Fiber Cement Brownfield Current APAC Capacity Summary: Q3 FY23 • Nameplate FC Capacity: 612 mmsf For personal use only Fiber • Number of FC Sheet Machines: 7 Cement Nameplate: 59mmsf Capacity Expansion of Existing FC Plant APAC Fiber
Slide 116: Europe Capacity Expansion
James Hardie Investor Day 2022 EUROPE CAPACITY EXPANSION Orejo Fiber Gypsum Brownfield Current EU Capacity Summary: Q4 FY24 • Nameplate FG Capacity: 1,143 mmsf For personal use only Fiber • Number of FG Production Lines: 5 Gypsum Nameplate: 252mmsf • Nameplate FC Capacity: 0 mmsf Capacity th 6 Fiber
Slide 117: Global Capacity Timelines
James Hardie Investor Day 2022 GLOBAL CAPACITY TIMELINES FY23 FY24 FY25 FY26+ For personal use only Prattville Finishing Prattville Trim Finishing Q2 FY23 Westfield Finishing Westfield ColorPlus® Finishing Q4 FY23 Prattville 3 & 4 Sheet Machines Prattville Fiber Cement 3 & 4 Q3 FY24 NA Fiber Cement
Slide 118: Global Capacity Expansion Summary
James Hardie Investor Day 2022 GLOBAL CAPACITY EXPANSION SUMMARY For personal use only We have a global capacity expansion strategy to enable the profitable growth plans We have a fully in all three regions integrated plan to deliver capacity We have built a global organization to leverage the vast
Slide 119: Global Capacity – Summary
James Hardie Investor Day 2022 GLOBAL CAPACITY – SUMMARYUN For personal use only Operational scale advantage centered around a network of strategically located plants near our customers & inputs A culture of continuous improvement with clear strategies to enhance our capabilities We have a global ca
Slide 120: Q&A
For personal use only Page 120 Q&A
Slide 121: Closing: Why James Hardie?
For personal use only CLOSING: WHY JAMES HARDIE? Aaron Page 121 Erter, CEO
Slide 122: Control What We Can Control
James Hardie Investor Day 2022 CONTROL WHAT WE CAN CONTROL For personal use only We are navigating market uncertainty We will control what we can control We plan to win regardless of market conditions We will accelerate and expand our competitive advantages Page 122
Slide 123: Right Global Strategy to Deliver Growth
James Hardie Investor Day 2022 RIGHT GLOBAL STRATEGY TO DELIVER GROWTH For personal use only 1 Market to Homeowners to Create Demand 2 Penetrate and Drive Profitable Growth in Existing and New Segments 3 Commercialize Global Innovations by Expanding Into New Categories Continued Execution and Expans
Slide 124: Zero Harm & ESG Underpin the Global Strategy
James Hardie Investor Day 2022 ZERO HARM & ESG UNDERPIN THE GLOBAL STRATEGY For personal use only Zero Harm is a Foundational, Our conviction that every incident is preventable Non Negotiable element of our Global Culture Page 5 James Hardie Investor Day 2022 OUR PILLARS James Hardie’s sustainabilit
Slide 125: Proven Sustainable Profitable Growth in Every Region
James Hardie Investor Day 2022 PROVEN SUSTAINABLE PROFITABLE GROWTH IN EVERY REGION… 10 Year Net Sales CAGR 10 Year Adj. EBIT CAGR For personal use only North America 12% 16% APAC 8% 10% 1 1 Europe 10% 81% Page 125 1. Europe values are based on 3 Year CAGR since acquisition (FY22 vs FY19)
Slide 126: With Significant Growth Opportunities in All Regions
James Hardie Investor Day 2022 …WITH SIGNIFICANT GROWTH OPPORTUNITIES IN ALL 3 REGIONS… For personal use only New Construction We Want to Win in North America 35% Repair & Remodel All Regions 65% Northeast & Midwest R&R Represents Largest Opportunity FY22 Future Significant Market Share APAC Growth
Slide 127: A Strategy to Deliver Growth in Each Region
James Hardie Investor Day 2022 …A STRATEGY TO DELIVER GROWTH IN EACH REGION… For personal use only North America Value Chain CUSTOMER HOMEOWNER North America CONTRACTOR Perfect Store in ANZ APAC Small Architect/ Builder Designer Fiber Cement and Fiber Gypsum in Europe Europe Page 127
Slide 128: & The Right Enablers to Propel Growth
James Hardie Investor Day 2022 …& THE RIGHT ENABLERS TO PROPEL GROWTH Market Driven Global Innovation Marketing to Homeowners For personal use only Proven Execution of Innovation: in North America and APAC North America APAC Our Technologies & Mega Trends Full Wrap Solutions Hardie™ Architectural Ca
Slide 129: Creating Global Value
James Hardie Investor Day 2022 CREATING GLOBAL VALUE For personal use only Global Operating Global Net Sales Global Adj. ROCE2 Global Adj. Net 10 Year CAGR Cash Flow Avg. FY19-FY22 3 Year Avg FY22 vs FY121 Income 10 Year CAGR 11% 3x 38% 15% 1. Comparison of average Global Operating Cash Flow FY20-FY
Slide 130: Why JHX?
James Hardie Investor Day 2022 WHY JHX? For personal use only Strong Growth Opportunities Experienced Management Team Emerging Homeowner-Focused Brand Strong Balance Sheet & Cash Generation Innovative Product Pipeline Attractive Returns Integrated Localized Supply Chain Premium Product Portfolio Mul
Slide 131: For personal use only
For personal use only Page 131
Slide 132: Thank You
North America For personal use only North America APAC Europe THANK YOU Page 132
Slide 133: Q&A
For personal use only Page 133 Q&A
Slide 134: End of Day
For personal use only Page 134 END OF DAY 2
Slide 135: JHX Investor Day 2022 – Day 2
For personal use only JHX Investor Day 2022 Page 135 New York, 12-13 September 2022 – Day 2
James Hardie Industries — Investor Day (September 2022) on 6ix