James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2014)
24 slides from James Hardie Industries's investor day presentation, Sep 24, 2014
Slide 1: Slide 1
Slide 2: South Division - Ryan Sullivan
SOUTH DIVISION Ryan Sullivan 24 September 2014 Exhibit 99.5
Slide 3: Disclaimer
2 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, invitatio
Slide 4: Forward-looking statements cautionary notes
3 Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are n
Slide 5: Slide 5
Slide 6: Agenda
4 AGENDA • • • South Division: Overview and Starts Activity Manufacturing: Capability & Capacity Market: Product & Segment Strategies
Slide 7: South Division at a Glance
5 SOUTH DIVISION AT A GLANCE Quick Facts Manufacturing Employees: ~640 Sales Employees: ~100 FY14 Volume: ~890 mmsf ~60% of North American Volume ~80% Exteriors vs Interiors ~85% Single Family vs Multi Family Source: Company data
Slide 8: Starts Summary
6 SOUTH STARTS SUMMARY While the South Division continues to grow above the market, we have seen starts forecasts come down significantly since our FY15 planning cycle Source: Dodge/Company data
Slide 9: Southern Division FY15 Focus Areas
7 Organizational Development Focused growth from hardboard and vinyl while executing on the 90 • Key Product Initiatives – Trim, ColorPlus ® and Top of Market • Key Segment Initiatives – New contractor program, Ambassador program, 100% Hardie builder program Capacity Additions SOUTHERN DIVISION FY15
Slide 10: Product Strategy: Trim
8 PRODUCT STRATEGY: TRIM Trim Product Initiatives in South Sanded Edge Expansion HardieTrim® Mouldings 1x2 Position durability of JH trim against lower performing wood and hardboard trim
Slide 11: Product Strategy: ColorPlus
9 PRODUCT STRATEGY: COLORPLUS ® Provide a superior performing product to homeowners Provide a more economical JH solution in high paint cost markets Organizational focus for C+ is on Repair/Remodel segments across the South, and New Construction in markets with high field paint costs
Slide 12: Product Strategy: Top of Market
10 PRODUCT STRATEGY: TOP OF MARKET Reveal® Panel System Artisan® Plank Artisan® V Rustic We are expanding our access to the “Top of Market” by launching new products and entering new markets
Slide 13: Segment Strategies
11 key segment initiatives within the Single Family segment to accelerate growth and product mix shift SEGMENT STRATEGIES New R&R Contractor Program R&R Ambassador Program 100% Hardie
Slide 14: R&R Segment Strategy
Ensure R&R segment is disproportionate share of 35-90 12 R&R SEGMENT STRATEGY Build and maintain a winning network of aligned contractors Contractor Programs Contractor Business Solutions Digital Build an organization of R&R experts Training Organizational Alignment Compensation for Right Behavior F
Slide 15: Purpose of Website Contractor Program
13 To increase the number of homes that receive a high-quality Hardie sales and install experience via growing our network of aligned contractors. PURPOSE OF WEBSITE CONTRACTOR PROGRAM JH POV CONTRACTOR POV HOMEOWNER POV Extension of our Brand. Deliver JH value prop in local markets Match in-market
Slide 16: Why Change Our Program Now?
14 Dedicated Replacement Contractors “James Hardie is my business.” • Highest endorsement from Hardie • Enhanced support and tools • Differentiation from other siding contractors Preferred Remodeler Program Associate Contractor Program WHY CHANGE OUR PROGRAM NOW? Combining the best of both programs
Slide 17: Cementing Ourselves as Your Greatest Ally
15 CEMENTING OURSELVES AS YOUR GREATEST ALLY Program launching Q3 FY15
Slide 18: Contractor program tier benefits
16 • • • • • • • • • • • • Elite logo & certificate Elite placement on the Remodeler Locator Distinguish your business with Contractor Alliance Badges Participation in the HardieRewards™ Program (25% Bonus Points) HardieReward Milestones™ Members Only access to production, sales, and marketing busin
Slide 19: South Division Manufacturing: Plant Key Capabilities
Plant Key Capabilities 17 • • • • • SOUTH DIVISION MANUFACTURING Fontana, CA Sheet Machines: 4’ wide, 5’ wide Low Density Production Primary products: Panel, Backer Key Imports: Trim, Heritage®, Artisan® and ColorPlus® Products Plant City, FL Sheet Machines: 4’ wide Primary Products: Panel, Plank Ke
Slide 20: James Hardie
® JamesHardie
Slide 21: South Manufacturing Locations
18 SOUTH MANUFACTURING LOCATIONS HZ10 Manufacturing Facility ColorPlus ® Products Facility VMI Distribution Center Big Box Distribution Center
Slide 22: Southern Capacity Update
19 Capacity expansion plans aligned to current forecast and our 85% target utilization rate • • • • SOUTHERN CAPACITY UPDATE Fontana: Ramp-up currently on track Plant City Trim: Construction complete Q415 Cleburne: Construction complete Q116 Evaluating next capacity add: Summerville vs Mid South
Slide 23: Summary
20 • South is predominantly mature FC market. Growth must come from wood, hardboard, accessories, and vinyl in certain regions • Starts/Market coming in below forecast • Key Product Initiatives; Trim, ColorPlus ® , and Top of Market • Key Segment Initiatives; New Contractor Program, Hardie Ambassado
Slide 24: Questions
QUESTIONS
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