James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (September 2013)
36 slides from James Hardie Industries's investor presentation, Sep 23, 2013
Slide 1: Investor Presentation September 2013
For personal use only INVESTOR PRESENTATION SEPTEMBER 2013
Slide 2: Disclaimer
For personal use only DISCLAIMER This Investor 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 ci
Slide 3: Agenda
For personal use only AGENDA • Business Overview • USA & Europe Fibre Cement • Asia Pacific Fibre Cement • Group Outlook • Summary • Appendix In this Investor Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financial measures included
Slide 4: JHX: A Growth Focused Company
For personal use only JHX: A GROWTH FOCUSED COMPANY Annual net sales US$1.5b Total assets US$1.3b Net cash US$198m Operations in North America, Asia Pacific and Europe 2,700 employees Market cap US$4.1b S&P/ASX 100 company NYSE ADR listing Note: Market capitalization, total assets an
Slide 5: Group Overview
For personal use only 1 1 GROUP OVERVIEW US Millions Q1 Q1 % % FY2013 FY2012 FY2014 FY2013 Change Change Net Operating Profit 2 142.2 68.5 - 45.5 604.3 (92) Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses 52.0 43.8 19 140.8 144.3 (2)
Slide 6: JHX: A World Leader in Fibre Cement
For personal use only JHX: A WORLD LEADER IN FIBRE CEMENT USA Fibre Cement Products Siding Soffit Fascia Trim Backerboard Asia Pacific Fibre Cement Products Residential siding Commercial exteriors Flooring Ceilings and internal walls 6
Slide 7: Global Business Portfolio
For personal use only 1 GLOBAL BUSINESS PORTFOLIO 100% 90% 80% 70% 81% 75% 74% 60% 50% 40% 30% 20% 19% 25% 26% 10% 0% Volume Net Sales EBIT* USA and Europe Fibre Cement Asia-Pacific Fibre Cement 1 All numbers are for the 1st quarter ended 30 June 2013 *EBIT – Excludes Research and Development EBIT,
Slide 8: Fibre Cement: Superior Product Performance
FIBRE CEMENT: For personal use only SUPERIOR PRODUCT PERFORMANCE Fibre cement is more durable than wood and engineered wood, looks and performs better than vinyl, and is more cost effective and quicker to build with than brick Fibre Cement Vinyl Engineered Wood Fire resistant ? ? Hail resistant
Slide 9: Product Leadership Example: HardieZone System
PRODUCT LEADERSHIP EXAMPLE: For personal use only HARDIEZONE® SYSTEM • 7th Generation versus 2nd Generation generic fibre cement • The HardieZone® System represents a logical extension of Hardie technology ® 9
Slide 10: The USA Business: Largest Fibre Cement Producer in North America
THE USA BUSINESS: LARGEST FIBRE For personal use only CEMENT PRODUCER IN NORTH AMERICA 10
Slide 11: USA Fibre Cement
For personal use only USA FIBRE CEMENT Top Line Growth Volume (mmsf) / Starts (000s Units) Revenue (US$M) '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 11 12 13 JH Volume Housing Starts JH Revenue Market and category share tracking as planned in FY14 Rolling 12 month average of seasonally adjusted e
Slide 12: USA and Europe Fibre Cement
For personal use only USA AND EUROPE FIBRE CEMENT 1Excludes asset impairment charges of US$14.3 million in 4th quarter FY12, US$5.8 million in 3rd quarter FY13 and US$11.1 million in 4th quarter FY13 12
Slide 13: USA and Europe Fibre Cement
For personal use only USA AND EUROPE FIBRE CEMENT 13
Slide 14: Total US Housing Starts
For personal use only TOTAL US HOUSING STARTS U.S. Housing Starts Calendar Quarters 800 50% 37.8% 600 40% 28.0% 34.3% 30% 400 23% 17% 17.0% 25.2% 20% 200 23.4% 12% (Thousands of Starts) 6% 7% 7% 4% 6% 10% 4% 0 -1% 0% -200 -9% -5% -10% -3% -7% -400 -19% -19% -21% -25% -23%-24% -20% -28% -600 -31% -31
Slide 15: Asia Pacific Fibre Cement
For personal use only ASIA PACIFIC FIBRE CEMENT Five manufacturing plants in Asia Pacific 1 Net sales US$376m 1 EBIT US$84m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities 1 Net Sales and EBIT equal Q1 FY14 annualised. EBIT exc
Slide 16: Asia Pacific Fibre Cement - Examples
For personal use only ASIA PACIFIC FIBRE CEMENT - EXAMPLES Ceilings and partitions Exterior cladding Philippines Australia Australia Interior walls New Zealand General purpose flooring 16
Slide 17: Future Shareholder Returns
For personal use only FUTURE SHAREHOLDER RETURNS • The company announced in November 2012 a dividend payout ratio of between 30% and 50% of net operating profit (excluding asbestos adjustments) from FY14 onwards • The company also announced on 23 May 2013: • A new share buyback program to acquire up
Slide 18: Group Outlook
For personal use only GROUP OUTLOOK USA and Europe Fibre Cement • The US operating environment continues to reflect an increasing number of housing starts and improving house values • Pick-up in repair and remodelling activity becoming apparent • The company is continuing with its plan to invest in
Slide 19: Summary
For personal use only SUMMARY We have a strong, well-established, growth-focused, strong cash-generating and high return business We have a sustainable competitive advantage Our model for strong growth is based on: Large market opportunity Superior value proposition Proprietary and/or pr
Slide 20: Appendix
For personal use only APPENDIX
Slide 21: Global Strategy
For personal use only GLOBAL STRATEGY Industry leadership and profitable growth Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Australia Introduce differentiated products to deliver a
Slide 22: Key Ratios
For personal use only KEY RATIOS 22
Slide 23: USA and Europe Fibre Cement Year Results Overview
USA AND EUROPE FIBRE CEMENT For personal use only 5 YEAR RESULTS OVERVIEW FY09 FY10 FY11 FY12 FY13 Net Sales 929 828 814 862 951 US$m Sales Volume 1,527 1,304 1,248 1,332 1,489 mmsf Average Price 609 635 652 647 639 US$ per msf 1 EBIT US$m 199 209 160 163 163 1 EBIT Margin % 21 25 20 19 17 1 Exclude
Slide 24: Asia Pacific Fibre Cement Year Results Overview
ASIA PACIFIC FIBRE CEMENT For personal use only 5 YEAR RESULTS OVERVIEW FY09 FY10 FY11 FY12 FY13 Net Sales 273 297 353 376 370 US$m Sales Volume 391 390 408 392 394 mmsf Average Price 879 894 916 916 911 US$ per msf EBIT US$m 1 47 59 79 86 75 1 EBIT Margin % 17 20 23 23 20 1 Excludes New Zealand pro
Slide 25: Financial Summary
For personal use only FINANCIAL SUMMARY US$ Millions Q1 '14 Q1 '13 % Change Net Sales USA and Europe Fibre Cement $ 278.1 $ 252.0 10 Asia Pacific Fibre Cement 94.1 87.7 7 Total Net Sales $ 372.2 $ 339.7 10 EBIT - US$ Millions USA and Europe Fibre Cement $ 59.4 $ 50.3 18 Asia Pacific Fibre Cement 21.
Slide 26: Endnotes
For personal use only ENDNOTES This Management Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the company’s most recent results material for Q1 FY14, including Management’s Analysis of Results, Media Release and Consolidated Fin
Slide 27: Endnotes (continued)
For personal use only ENDNOTES (CONTINUED) Financial Measures – US GAAP equivalents This document contains financial statement line item descriptions that are considered to be non-US GAAP, but are consistent with those used by Australian companies. Because the company prepares its consolidated finan
Slide 28: Endnotes (continued)
For personal use only ENDNOTES (CONTINUED) EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales. 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
Slide 29: Non-US GAAP Financial Measures
For personal use only NON-US GAAP FINANCIAL MEASURES EBIT and EBIT margin excluding asbestos, ASIC expenses and New Zealand product liability expenses – EBIT and EBIT margin excluding asbestos, ASIC expenses and New Zealand product liability expenses are not measures of financial performance under U
Slide 30: Non-US GAAP Financial Measures (continued)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONTINUED) Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments – Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments is
Slide 31: Non-US GAAP Financial Measures (continued)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONTINUED) Diluted earnings per share excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments – Diluted earnings per share excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adj
Slide 32: Non-US GAAP Financial Measures (continued)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONTINUED) Effective tax rate excluding asbestos, New Zealand product liability expenses and tax adjustments – Effective tax rate on earnings excluding asbestos, New Zealand product liability expenses and tax adjustments is not a measure of finan
Slide 33: Non-US GAAP Financial Measures (continued)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONTINUED) Adjusted EBITDA – is not a measure of financial performance under US GAAP and should not be considered an alternative to, or more meaningful than, income from operations, net income or cash flows as defined by US GAAP or as a measure o
Slide 34: Non-US GAAP Financial Measures (continued)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONTINUED) General corporate costs excluding ASIC expenses and intercompany foreign exchange gain – General corporate costs excluding ASIC expenses and intercompany foreign exchange gain is not a measure of financial performance under US GAAP and
Slide 35: Non-US GAAP Financial Measures (continued)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONTINUED) Selling, general and administrative expenses excluding New Zealand product liability expenses – Selling, general and administrative expenses excluding New Zealand product liability expenses is not a measure of financial performance und
Slide 36: For personal use only
For personal use only
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