James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (March 2013)
34 slides from James Hardie Industries's investor presentation, Mar 11, 2013
Slide 1: Investor Presentation March 2013
INVESTOR PRESENTATION March 2013 Exhibit 99.6
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 27. The company presents financial measures that it believes are customa
Slide 4: JHX: A Growth Focused Company
Annual net sales US$1.3b Total assets US$1.7b Net cash US$159.5m Operations in North America, Asia Pacific and Europe 2,600 employees Market cap US$4.2b S&P/ASX 100 company NYSE ADR listing Note: Net sales annualised, total assets and net cash are at 31 December 2012. Total assets exclude asbestos c
Slide 5: Group Overview
GROUP OVERVIEW • For the half year, net operating profit excluding asbestos, ASIC expenses and tax adjustments decreased 2% to US$78.6 million • Half year operating results reflect a recovery of US$2.7 million for legal costs associated with the conclusion of RCI’s disputed amended tax assessment wi
Slide 6: JHX: 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 JHX: A WORLD LEADER IN FIBRE CEMENT
Slide 7: Global Business Portfolio
All numbers are for Half Year ended 30 September 2012 * EBIT – Excludes Research and Development EBIT and Asbestos-related items GLOBAL – BUSINESS PORTFOLIO USA and Europe Fibre Cement Asia-Pacific Fibre Cement 78% 68% 32% 22% 69% 31% Volume Sales EBIT*
Slide 8: 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 Engineered wood Vinyl Fibre cement FIBRE CEMENT – SUPERIOUR PRODUCT PERFORMANCE Fire resistant Hail resistant Resists warping Resists buckling Colour
Slide 9: Product Leadership Example: HardieZone System
th Generation versus 2 nd Generation generic fibre cement The HardieZone™ System represents a logical extension of Hardie technology PRODUCT LEADERSHIP EXAMPLE – HARDIEZONE™ SYSTEM
Slide 10: 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 Summerville, South Carolina Flat Sheet Total 3,390 Plant locations Prod
Slide 11: US Exterior Cladding Market
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 Builder Practices and Consumer Practices Report
Slide 12: USA Fibre Cement: Housing Starts
Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau USA FIBRE CEMENT
Slide 13: USA and Europe Fibre Cement: Quarterly EBIT and EBIT Margin
Excludes impairment charges of US$38.6 million in Q4 FY08, US$14.3 million in Q4 FY12 and US$5.8 million in Q3 FY13 Quarterly EBIT and EBIT Margin EBIT EBIT Margin USA AND EUROPE FIBRE CEMENT
Slide 14: USA and Europe Fibre Cement: Average Net Sales Price
USA AND EUROPE FIBRE CEMENT Average Net Sales Price (US dollars) FY13 average net sales price represents 3rd quarter year-to-date; other years presented are for the full year
Slide 15: US Housing Starts
(Thousands of starts) 1009 ~ “1203 Souice: 3 Census Bucau- Now Prvately-Onned Housing is Stated US, Housing Starts Calendar Quarters: BHoveing starts. ~%Gromth {seme GrPY}
Slide 16: Asia Pacific Fibre Cement
Five manufacturing plants in Asia Pacific Net sales US$383m EBIT US$77m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities. Net Sales and EBIT as at December annualised. ASIA PACIFIC FIBRE CEMENT
Slide 17: Asia Pacific Fibre Cement: Examples
General purpose flooring Exterior cladding Philippines New Zealand Australia Ceilings and partitions Interior walls Australia ASIA PACIFIC FIBRE CEMENT - EXAMPLES
Slide 18: Capital Management
CAPITAL MANAGEMENT On 23 July 2012, the Company paid a FY2012 second half dividend of US$166.4 million, reflecting a payment of US38.0 cents per security (nil in FY12). On 25 January 2013, the Company paid a FY2013 first half dividend of US$22.1 million (US$17.4 million in FY12), reflecting a paymen
Slide 19: Group Outlook
GROUP OUTLOOK United States Industry data indicates consistent improvement in builder confidence and increased activity in the US housing market - momentum of recovery appears well founded In anticipation of housing recovery continuing, the business is funding initiatives to improve organisational c
Slide 20: Summary
We have a strong, well-established, growth-focused, strong cash-generating and high return business We have a sustainable competitive advantage Our model for strong growth is based on: – Large market opportunity – Superior value proposition – Proprietary and/or protected technology – Ongoing commitm
Slide 21: Appendix
APPENDIX
Slide 22: Global Strategy
Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Introduce differentiated products to deliver a sustainable competitive advantage Industry leadership and profitable growth GLOBAL STRATEGY
Slide 23: Key Ratios
* Certain reclassifications have been reflected in the prior periods shown above to conform with current period presentation Excludes asbestos adjustments, AICF SG&A expenses, AICF interest income, tax benefit related to asbestos adjustments, ASIC expenses/recoveries, asset impairments, New Zealand
Slide 24: USA and Europe 5 Year Results Overview
FY07 FY08 FY09 FY10 FY11 FY12 Net Sales US$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$m EBIT Margin % USA AND EUROPE 5 YEAR RESULTS OVERVIEW
Slide 25: Asia Pacific 5 Year Results Overview
FY07 FY08 FY09 FY10 FY11 FY12 Net Sales US$m Sales Volume mmsf Average Price US$ per msf EBIT US$m EBIT Margin % ASIA PACIFIC 5 YEAR RESULTS OVERVIEW
Slide 26: Results – Q3
RESULTS – Q3 US$ Millions Q3 '13 Q3 '12 % Change Net sales 320.4 283.0 Gross profit 96.2 90.6 SG&A expenses (59.7) (48.0) (24) Research & development expenses (9.9) (7.3) (36) Asset impairments (5.8) - - Asbestos adjustments 11.7 (33.5) - EBIT 32.5 1.8 - Net interest income (expense) 2.1 (1.5) - Oth
Slide 27: Definitions
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-financial Terms
Slide 28: 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) divided by net debt (cash) pl
Slide 29: Non-US GAAP Financial Measures
EBIT and EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses – EBIT and EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses are not measures of financial performance under US GAAP and shou
Slide 30: Non-US GAAP Financial Measures (continued)
Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments – Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments is not a measure of financial
Slide 31: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) Q3 Q3 9 Months 9 Months US$ Millions FY 2013 FY 2012 FY 2013 FY 2012 Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments $ 28.8 $ 28.0 $ 113.1 $ 109.3 Weighted average common
Slide 32: Non-US GAAP Financial Measures (continued)
Effective tax rate excluding asbestos, asset impairments and tax adjustments – Effective tax rate on earnings excluding asbestos, asset impairments 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.
Slide 33: Non-US GAAP Financial Measures (continued)
NON-US GAAP FINANCIAL MEASURES (CONTINUED) Q3 Q3 9 Months 9 Months US$ Millions FY 2013 FY 2012 FY 2013 FY 2012 EBIT $ 32.5 $ 1.8 $ 137.8 $ 162.9 Depreciation and amortisation 17.3 17.0 48.0 47.8 Adjusted EBITDA $ 49.8 $ 18.8 $ 185.8 $ 210.7 Adjusted EBITDA – is not a measure of financial performanc
Slide 34: INVESTOR
INVESTOR PRESENTATION March 2013
James Hardie Industries — Investor Presentation (March 2013) on 6ix