James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Shareholder Meeting (September 2006)
19 slides from James Hardie Industries's shareholder meeting presentation, Sep 19, 2006
Slide 1: Annual Information Meeting CEO's Address
@® James Hardie James Hardie Annual Information Meeting CEO’s Address Louis Gries 4 @ James Hardie James Hardie Results FY06 Unless otherwise stated, results are for continuing operations only, and comparisons are for fiscal year 2006 versus the prior fiscal year
Slide 2: Strong results
@® James Hardie Strong results « Net sales up 23% to US$1,488.5 million « Gross profit up 29% to US$550.8 million « Bottom line affected by recording of asbestos provision « USA Fibre Cement sales up 30% to US$1,218.4 million « USA Fibre Cement EBIT up 42% to US$342.6 million « Significant capacity
Slide 3: Full Year — very strong sales & EBIT growth
Full Year — very strong sales & EBIT growth Net Sales Sales Volume Average Price EBIT EBIT Margin up up up up up 30% to US$1,218.4 million 18% to 2,182.8 mmsf 10% to US$558 per msf 42% to US$342.6 million 2.4 pts to 28.1% Yolume (mmsf} / Starts {000s Units) @® James Hardie ¢ bp ty it Top-Line Growth
Slide 4: USA Fibre Cement Key Points; Asia Pacific Full Year Results
; o) James Hardie Key Points * Continuing sales growth in both emerging and established markets * Sales of both interior and exterior products growing strongly * Continued market penetration against alternative materials * Sales growth in higher-priced differentiated products * ColorPlus™ strategy c
Slide 5: Australia and New Zealand — Key Points
@® James Hardie Australia and New Zealand — Key Points * New housing and renovation activity continued to weaken in both Australia and New Zealand « Sales volumes and market share increased « Regaining momentum in commercial sector lost through last year’s bans and boycotts « Net sales up slightly t
Slide 6: Other businesses: USA Hardie Pipe, Europe, Artisan Roofing
@® James Hardie Dy) ee YO6 Other aE USA Hardie Pipe - Key Points « Both residential and non-residential construction activity remained buoyant in Florida « Market share gains « Manufacturing performance improvements « Reduced EBIT loss Europe Fibre Cement « Sales building steadily « Continuing to ex
Slide 7: Key financial ratios FY06 FY05 FY04
4 @® James Hardie FY06 EY05 FY04 EPS (Diluted) * 44.9¢ 27.7¢ 27.2c Dividend paid per share 10.0¢ 3.0c 5.0c Return on Shareholders’ Funds* 29.6% 22.4% 27.6% Return on Capital Employed* 32.1% 23.6% 23.4% EBIT/ Sales (EBIT margin) 20.9% 16.2% 17.5% Gearing Ratio (1.6)% 6.8% 17.0% Net Interest Expense C
Slide 8: Overview - Q1
@® James Hardie a Overview - Q1. Operating Results * USA Fibre Cement — strong sales and EBIT growth * Asia Pacific Fibre Cement * Australia and New Zealand — volumes up slightly despite weaker market, but EBIT down « Philippines — EBIT positive » USA Hardie Pipe — first quarterly positive EBIT resu
Slide 9: Results Q1 FY07 USA Fibre Cement
‘Results Q1 FY07 USA Fibre Cement USSMillion Net Sales 348.9 EBIT 103.3 Volume 605.7 mmst EBIT Margin 29.6% Up Up Up Down 21% 10% 16% EBIT USSM EBIT and EBIT Margi Fyo1 FYO2 FYO3 FYO4 F NX iti, EBIY mem EBITISAles 25 YO5: “Excludes restructuring and ather operating expenses of US$12.6 million is Q3
Slide 10: USA Fibre Cement New housing slow-down
@® James Hardie o ome Por a ee a USA Fibre Cement New housing slow-down » Key sales determinants: * Level of new housing construction activity * Level of repair and remodel activity * Market development program effectiveness * Price improvement * New housing construction segment currently accounts f
Slide 11: Q1 FY07 Results and Outlook
@® James Hardie ae Qi FY07 Results Other Businesses ANZ volumes slightly up, EBIT margin 16.7% Philippines sales up 2%, EBIT positive USA Hardie Pipe — first EBIT positive quarter Europe ~ EBIT negative, as expected 24 @ James Hardie USA Fibre Cement * New housing construction to continue to slow «
Slide 12: Asia Pacific Fibre Cement outlook
4 @® James Hardie Asia Pacific Fibre Cement * No material improvement to market conditions in Asia Pacific businesses expected in short-term Company *« SCI and other related expenses to continue until FFA finalised * Future reported earnings subject to volatility related impact of currency exchange
Slide 13: Understanding our Sustainable Competitive Advantage
@® James Hardie Unique plant engineering and proprietary process technology and product formulations — significant investment in R&D Superior capital cost efficiency Low cost manufacturer Only national producer of fibre cement in each key market Excellent plant economies of scale — plants 2-3 times
Slide 14: JH Plant Design Capacity
@® James Hardie JH Plant Design Capacity Fiat Sheet Capacity Plants (mumsfy Fontana, Cafifornia 180 Plant City, Florida 300 Cleburne, Texas 600 Tacoma, Washington 200 Peru, ilfinais: 560 Waxahachie, Texas 360 Blandon, Pennsylvania 200 Summerville, South Carolina 190 Reno, Nevada 300 Pulaski, Virgini
Slide 15: Revenue growth and long term targets
F @® James Hardie yr ae $384 $329 nm, $828 2° even $298." . $251 $259" if i 4 ld i | ei fyo2 FYes Fo FYos FYOS «FYB? YOR s Reverse Uillillll # of Employees ~~~ Revenue Per Employee Fyoo FYOO FYO1 FYe2 FYOt FYOE FYOS FYO6 29 ”) James Hardie B Long Term Target" Actual Actual Actual FY06 FY05 FY04 Reve
Slide 16: Asbestos-related compensation progress
@® James Hardie oO James Hardie Annual Information Meeting Asbestos-related compensation progress @® James Hardie Progress made but slower than expected Ail proven claims continue to be paid by MRCF Company recorded a net provision of US$716m (A$1 billion) at 31 March 2006 ~ “probable and estimable”
Slide 17: Asbestos Update
@® James Hardie A Asbestos Update « There have been ongoing discussions with ATO and NSW Government on tax treatment of SPF since adverse ATO decision in June * Currently discussing potential and limited amendments to FFA with NSW Goverment — objective is satisfactory outcome for all stakeholders to
Slide 18: Endnotes
lames Hardie feu James Hardie Annual Information Meeting 4 : PER og) Endnotes DEFINITIONS Financlat Measures — US GAAP equivalents EBIT and EBIT margin — EBIT is equivalent to the US GAAP measure of operating income. EBIT margin is defined as EBIT as a percentage of net sales. James Hariie believes
Slide 19: Non-US GAAP Financial Measures
@® James Hardie NON-US GAAP FINANCIAL MEASURES EBIT and EBIT margin exciuding asbestos — EBIT and EBIT margin excluding asbestos are not measures of financial performance under US GAAP and should not be considered to be more meaningful thas EBIT and EBIT margin. James Hardie has included these finan
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