James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (May 2021)
56 slides from James Hardie Industries's investor day presentation, May 24, 2021
Slide 1: JHX Investor Day
James Hardie Investor Day 2021 JHX INVESTOR DAY MONDAY MAY 24TH, 2021 – CHICAGO, ILLINOIS Page 1 FLORIDA: CAPE COD
Slide 2: Cautionary Note on Forward-Looking Statements
James Hardie Investor Day 2021 CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS 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 “Co
Slide 3: Agenda
James Hardie Investor Day 2021 AGENDA Time Topic Presenter NEW YORK: COLONIAL 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 TENNESSEE: MODERN FARMHOUSE 5 Mins Financial Summary Jason 5 Mins
Slide 4: Presenters
James Hardie Investor Day 2021 PRESENTERS Dr. Jack Truong Marc Setty Cathleya Buchanan Chief Executive Officer Head of Marketing Head of Marketing North America APAC Jason Miele Fran Flanagan Sami Rahman Chief Financial Officer Head of Consumer Marketing Head of Product Management North America Page
Slide 5: JHX Strategic Plan
James Hardie Investor Day 2021 JHX STRATEGIC PLAN Page 5 NEW YORK: COLONIAL
Slide 6: Our Vision
James Hardie Investor Day 2021 OUR VISION To be a PREMIER, CONSUMER BRANDED COMPANY that offers ENDLESS DESIGN POSSIBILITIES to EXTERIORS and INTERIORS of the home ALABAMA: CRAFTSMAN TUDOR Page 6
Slide 7: Our Mission
James Hardie Investor Day 2021 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 Page 7
Slide 8: FY15-FY19 Financial Results…Profitable Growth Stalled
James Hardie Investor Day 2021 FY15-FY19 FINANCIAL RESULTS…PROFITABLE GROWTH STALLED Net Sales Adjusted EBIT US$ in millions US$ in millions 2,507 2,055 1,922 1,728 398 405 1,657 351 354 304 4 Year 4 Year CAGR: CAGR: +7%1 +7%1 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 1. CAGR calculation exc
Slide 9: A New James Hardie
James Hardie Investor Day 2021 A NEW JAMES HARDIE FY20-FY21: Transform to Enable Consistent, Measureable Accomplishments Profitable Growth Globally and Record Performance ▪ World class manufacturing via LEAN to expand margins ✓ US$107 million in cumulative global LEAN savings ▪ Closely partner with
Slide 10: A New James Hardie: From World's Best Fiber Cement Producer to World Class Manufacturer via LEAN
James Hardie Investor Day 2021 A NEW JAMES HARDIE: FROM WORLD’S BEST FIBER CEMENT PRODUCER… …TO A WORLD CLASS MANUFACTURER VIA LEAN Global LEAN Savings Global LEAN Savings After Eight Quarters1 Targets FY22-FY24 $US 107 $US 340 MM1 MM2 1. Cumulative for FY20 and FY21 2. Cumulative for FY22 to FY24 L
Slide 11: A New James Hardie: Executing Push-Pull Strategy
James Hardie Investor Day 2021 A NEW JAMES HARDIE: EXECUTING PUSH-PULL STRATEGY Hunter Lansing, CEO $1.0 Revenue Bn Sales 1,600 Associates Branches in 112 35 States Page 11
Slide 12: A New James Hardie: Executing Push-Pull Strategy
James Hardie Investor Day 2021 A NEW JAMES HARDIE: EXECUTING PUSH-PULL STRATEGY Mike Jost, COO $12.1 Revenue Bn Sales 15,000 Associates Nationwide 800 Locations Page 12
Slide 13: Step Change in Delivering Consistent Financial Results, Globally
James Hardie Investor Day 2021 A NEW JAMES HARDIE: STEP CHANGE IN DELIVERING CONSISTENT FINANCIAL RESULTS, GLOBALLY Net Sales Adjusted EBIT US$ in millions 2,909 US$ in millions 629 2,607 2,507 487 398 405 2,055 351 354 1,922 304 1,657 1,728 2 Year 2 Year CAGR: CAGR: +8% +25% FY15 FY16 FY17 FY18 FY1
Slide 14: Profitable Growth in an Expanding Global Footprint
James Hardie Investor Day 2021 A NEW JAMES HARDIE: PROFITABLE GROWTH IN AN EXPANDING GLOBAL FOOTPRINT Net Sales1 US$ in millions 2,908.7 2,492.0 410.3 1,905.2 368.3 458.2 41.2 446.8 370.6 2,040.2 1,493.4 1,676.9 FY17 FY19 FY21 EU APAC Adjusted EBIT2 North America US$ in millions 758.9 42.7 497.7 128
Slide 15: Front Row Seat to Design Changes Around the World
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 MODERN LOOK ENDLESS POSSIBILITIES OF DESIGN AND AESTHETICS 2 Europe 1 Australia 3 North America Page 15
Slide 16: FY22 and Beyond: Drive Profitable Growth Globally
James Hardie Investor Day 2021 FY22 AND BEYOND: DRIVE PROFITABLE GROWTH GLOBALLY 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 Expansion of Found
Slide 17: Push – Pull: Integrated Marketing to Christine
James Hardie Investor Day 2021 PUSH – PULL: 360 INTEGRATED MARKETING TO CHRISTINE… Campaign Started on May 3rd, 2021 It’s possible with AWARENESS AMPLIFICATION PURCHASE CONSIDERATION Homeowneris at the center of our attention Targeted Digital Media DRTV Influencer Content Creation Page 17
Slide 18: Extend into New and Existing Segments (NA Repair and Remodel)
James Hardie Investor Day 2021 FY22 AND BEYOND: EXTEND INTO NEW AND EXISTING SEGMENTS (NA REPAIR AND REMODEL) Share of Owner-Occupied Housing by 44 Million Homes That are More Year Structure Built1 Than 40 years old Built 2010 or Later 6% • Significant opportunity for re-Siding and remodeling 14% Bu
Slide 19: Global Innovation…Transform the Way the World Builds
James Hardie Investor Day 2021 FY22 AND BEYOND: GLOBAL INNOVATION…TRANSFORM THE WAY THE WORLD BUILDS Combines Lasting Beauty & Lasting Beauty & Endless Design Possibilities Trusted Protection & Endless Design Low Maintenance Possibilities WITH ▪ Engineered for Climate® ▪ Non-Combustible ▪ Insect & P
Slide 20: Profitable Organic Growth via Innovation: Hardie Textured Panels
James Hardie Investor Day 2021 FY22 AND BEYOND: PROFITABLE ORGANIC GLOBAL GROWTH VIA INNOVATION INTRODUCING HARDIE® TEXTURED PANELS External Cladding in New Single Family Construction NORTH AMERICA1 51% 49% Addressable With Current JHX Product Portfolio NEW JERSEY: HARDIE® TEXTURED PANELS Expansion
Slide 21: Profitable Organic Growth via Innovation: Hardie Fine Texture Cladding
James Hardie Investor Day 2021 FY22 AND BEYOND: PROFITABLE ORGANIC GLOBAL GROWTH VIA INNOVATION INTRODUCING HARDIE™ FINE TEXTURE CLADDING External Cladding in New Single Family Construction APAC1 41% 59% Addressable With Current JHX Product Portfolio AUSTRALIA: HARDIE™ FINE TEXTURE CLADDING Expansio
Slide 22: Summary: A New James Hardie
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 customers via Pu
Slide 23: Growth Through Marketing to Homeowners
James Hardie Investor Day 2021 GROWTH THROUGH MARKETING TO HOMEOWNERS Page 23 TENNESSEE: MODERN FARMHOUSE
Slide 24: Brand Vision
James Hardie Investor Day 2021 BRAND VISION Self-Expression Be the top of mind brand Authenticity that delivers curb appeal Pride & Joy to homeowners. Purposeful Design Sanctuary Page 24
Slide 25: Transformation to a Global Consumer Brand
James Hardie Investor Day 2021 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 Page 25
Slide 26: Accelerate Our Penetration into Repair and Remodel Segment
James Hardie Investor Day 2021 ACCELERATE OUR PENETRATION INTO REPAIR AND REMODEL SEGMENT Share of Owner-Occupied Housing by 44 Million Homes That are More Year Structure Built1 Than 40 years old Built 2010 or Later 6% • Significant opportunity for re-Siding and remodeling 14% Built 2000 • James Har
Slide 27: The Homeowner Is at the Center of Our Attention
James Hardie Investor Day 2021 THE HOMEOWNER IS AT THE CENTER OF OUR ATTENTION “The outside of my home is a reflection of me.” MEET Description: CHRISTINE • Married, mother of two • In the process of renovating her home “The outside of my Age: 35-54 home should keep • Creative, imaginative and perfe
Slide 28: James Hardie's Value to the Homeowner
James Hardie Investor Day 2021 JAMES HARDIE’S VALUE TO THE HOMEOWNER • Endless design possibilities to achieve your dream look • Long-lasting beauty • Trusted protection Page 28
Slide 29: Integrated Marketing to Christine
James Hardie Investor Day 2021 360 INTEGRATED MARKETING TO CHRISTINE It’s possible with AMPLIFICATION AWARENESS PURCHASE CONSIDERATION Homeowner is at the center of our attention Targeted Digital Media DRTV Page 29 Influencer Content Creation
Slide 30: Examples of Advertisements That Christine Will See
James Hardie Investor Day 2021 EXAMPLES OF ADVERTISEMENTS THAT CHRISTINE WILL SEE Page 30
Slide 31: Integrated Marketing to Christine
James Hardie Investor Day 2021 360 INTEGRATED MARKETING TO CHRISTINE It’s possible with AMPLIFICATION AWARENESS PURCHASE CONSIDERATION Homeowner is at the center of our attention Targeted Digital Media DRTV Page 31
Slide 32: Connecting Consumer Demand to Our Customers
James Hardie Investor Day 2021 CONNECTING CONSUMER DEMAND TO OUR CUSTOMERS Position our customers to capture consumer demand by enabling contractors to deliver on Christine's dream home exterior. Contractor Customer Customer Contractor Installation Partnership Training Events Training Page 32
Slide 33: With James Hardie, It's Possible
James Hardie Investor Day 2021 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 the mar
Slide 34: Growth Through Global Innovation
James Hardie Investor Day 2021 GROWTH THROUGH GLOBAL INNOVATION Page 34 NEW JERSEY: HARDIE® TEXTURED PANELS
Slide 35: Customer Insights to Innovation Process to Deliver High Impact New Products
James Hardie Investor Day 2021 CUSTOMER INSIGHTS TO INNOVATION PROCESS TO DELIVER… …HIGH IMPACT NEW PRODUCTS Mega Customer Winning Trends Insights Product Concepts Stage Gates CONCEPT PRODUCT DISCOVERY SCALE UP LAUNCH FEASIBILITY DEVELOPMENT Urbanization Product Prioritization Commercialization Deve
Slide 36: Innovation: Leverage Our Global Scale in Fiber Cement & Fiber Gypsum
James Hardie Investor Day 2021 INNOVATION: LEVERAGE OUR GLOBAL SCALE IN FIBER CEMENT & FIBER GYPSUM Fiber Cement 43 mmsf1,2 789 mmsf1,3 Fiber Gypsum 2,713 542 mmsf1 mmsf1 Manufacturing Facilities R&D Facilities Chicago HQ 1. FY21 Full Year volume 2. EU FY21 Full Year Fiber Cement related volume Page
Slide 37: Profitable Organic Growth via Innovation
James Hardie Investor Day 2021 PROFITABLE ORGANIC GROWTH VIA INNOVATION Combines Lasting Beauty & Lasting Beauty & Endless Design Possibilities Trusted Protection & Endless Design Low Maintenance Possibilities WITH ▪ Engineered for Climate® ▪ Non-Combustible ▪ Insect & Pest Resistant ▪ Impact Resist
Slide 38: Profitable Organic Growth via Innovation
James Hardie Investor Day 2021 PROFITABLE ORGANIC GROWTH VIA INNOVATION Market Driven Innovation Exterior Wall Material by Region1 North America2 Australia/New Zealand3 - Innovation Platform: Innovative products that deliver endless possibilities of design and aesthetics for the homeowner 41% 51% 49
Slide 39: Introducing Hardie Textured Panels
James Hardie Investor Day 2021 INTRODUCING HARDIE® TEXTURED PANELS Hardie® Smooth Sand Panel Hardie® Multi-Groove NEW JERSEY: HARDIE® TEXTURED PANELS Panel Page 39
Slide 40: Introducing Hardie Fine Texture Cladding
James Hardie Investor Day 2021 INTRODUCING HARDIE™ FINE TEXTURE CLADDING Hardie® Smooth Sand Panel Hardie™ Fine Texture Cladding Hardie® Multi-Groove AUSTRALIA: HARDIE™ FINE TEXTURE CLADDING Panel Page 40
Slide 41: Hardie Textured Panels
James Hardie Investor Day 2021 HARDIE® TEXTURED PANELS FLORIDA: HARDIE® TEXTURED PANELS Page 41
Slide 42: Hardie Textured Panels
James Hardie Investor Day 2021 HARDIE® TEXTURED PANELS FLORIDA: HARDIE® TEXTURED PANELS Page 42
Slide 43: Hardie Textured Panels
James Hardie Investor Day 2021 HARDIE® TEXTURED PANELS OREGON: HARDIE® TEXTURED PANELS Page 43
Slide 44: Hardie Fine Texture Cladding
James Hardie Investor Day 2021 HARDIE™ FINE TEXTURE CLADDING AUSTRALIA: HARDIE™ FINE TEXTURE CLADDING Page 44
Slide 45: Expanding from Functional to Aesthetics
James Hardie Investor Day 2021 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 Page 45
Slide 46: Making the Homeowner the Center of Our Attention
James Hardie Investor Day 2021 MAKING THE HOMEOWNER THE CENTER OF OUR ATTENTION REPAIR & NEW REPAIR & REMODEL (NA) CONSTRUCTION (NA) REMODEL (APAC) Jennifer & Brent San Dee & Cary Jane & Matt Huntington Beach, California, USA Portland, Oregon, USA Illawarra, NSW, Australia Home Value: US$ 850k Home
Slide 47: High Impact Commercialization
James Hardie Investor Day 2021 HIGH IMPACT COMMERCIALIZATION Net Sales Price in Test Sales >90% $1,800--$2,000/msf Vs. $745/msf1 Test Selling Market Acceptance in Invest in Marketing to create a Driving Revenue and EBIT growth our Target Markets New Category Higher Price AND Higher Gross Margin % 1
Slide 48: Profitable Organic Growth via Innovation
James Hardie Investor Day 2021 PROFITABLE ORGANIC GROWTH VIA INNOVATION Combines Lasting Beauty & Lasting Beauty & Endless Design Possibilities Trusted Protection & Endless Design Low Maintenance Possibilities WITH ▪ Engineered for Climate® ▪ Non-Combustible ▪ Insect & Pest Resistant ▪ Impact Resist
Slide 49: Financial Summary
James Hardie Investor Day 2021 FINANCIAL SUMMARY Page 49 COASTAL: CONTEMPORARY
Slide 50: A New James Hardie: Drive Profitable Growth, Globally
James Hardie Investor Day 2021 A NEW JAMES HARDIE: DRIVE PROFITABLE GROWTH, GLOBALLY Push/Pull & Penetrate LEAN Marketing to Market Led Customer Existing and Manufacturing Homeowners Innovation Integration New Segments Lower and More Market Create Demand Accelerate Growth Expand Consistent Cost Shar
Slide 51: FY 2022 Guidance and Key Assumptions
James Hardie Investor Day 2021 A NEW JAMES HARDIE: FY 2022 GUIDANCE AND KEY ASSUMPTIONS Adjusted Net Income1,2 $520 to $570 million +14% to +24% vs pcp Key Assumptions: North America Volume Growth Above Market +6% to +8% Average Net Sales Price +4% to +6% improvement versus FY21 Global SG&A and R&D
Slide 52: Drive High Value Product Mix
James Hardie Investor Day 2021 A NEW JAMES HARDIE: DRIVE HIGH VALUE PRODUCT MIX Maximize Net Sales and Gross Margin Price • Accelerate Volume Growth Average Net Sales Price $2,000 Hardie® market-led • with disciplined price management (US$/msf) Innovations $1,500 • and shift mix from low value to hi
Slide 53: A New James Hardie: Financial Summary
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. Capital
Slide 54: Closing Comments
James Hardie Investor Day 2021 CLOSING COMMENTS Page 54 NEW YORK: COLONIAL
Slide 55: A New James Hardie
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 Push/Pull t
Slide 56: Question and Answer
James Hardie Investor Day 2021 QUESTION AND ANSWER Page 56 FLORIDA: CAPE COD