James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Hardie James Industries — Shareholder Meeting (September 2004)
26 slides from James Hardie Industries's shareholder meeting presentation, Sep 16, 2004
Slide 1: Annual Information Meeting September 2004
Annual Information Meeting 15 September 2004 All results are for continuing operations unless otherwise stated Good morning. I am pleased to have the opportunity to talk to you about the operating performance of the business for the last year. I know the major issues for the company today are the In
Slide 2: USA Fibre Cement Sales and EBIT Growth
USA Fibre Cement Sales and EBIT1 Growth Sales EBIT1 +23% +26% As Meredith mentioned in her address, we had a year of very strong performance. USA Fibre Cement Our largest market is the USA and our USA Fibre Cement business continued its outstanding performance, finishing the year with increases in n
Slide 3: USA Fibre Cement Volume Growth
USA Fibre Cement Volume Growth 2004 245mmsf1 +19% 0 200 400 600 800 1000 1200 1400 1600 1800 2000 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Volume (MMSF1) / Starts (000's Units) $0 $125 $250 $375 $500 $625 $750 Revenue (USDM) Volume One of the most pleasing features of our North American performa
Slide 4: USA Fibre Cement Revenue Growth Continuing to Outstrip Volume Growth
USA Fibre Cement Revenue Growth Continuing to Outstrip Volume Growth 0 200 400 600 800 1000 1200 1400 1600 1800 2000 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Volume (MMSF1) / Starts (000's Units) $0 $125 $250 $375 $500 $625 $750 Revenue (USDM) Volume Revenue Housing Starts (12mo Avg) Around two-
Slide 5: Siding - Growth Potential
Siding - Growth Potential Siding - Growth Potential We grew demand for both interior and exterior products. Our share of these markets is still quite low, relative to the potential terminal market share, which provides us with significant long-term growth potential. Here is an example that might rep
Slide 6: Reno Plant Construction
Reno Plant Construction Reno Plant Construction Reno Plant Construction Reno Plant Construction Reno Plant Construction During the year we began constructing our plant in Reno, Nevada, with 300 million square foot annual design capacity. This plant has one line and will produce 50% more than our pre
Slide 7: Investment In People
Investment In People Investment In People We continue to invest in people and infrastructure to support further growth. Over the year, we added a significant number of employees, with an emphasis on sales and marketing roles. Through activities such as this, we are building a strong foundation for f
Slide 8: USA Fibre Cement Average Selling Price
USA Fibre Cement Average Selling Price 380 400 420 440 460 480 500 FY99 FY00 FY01 FY02 FY03 FY04 US$ per MSF Our average net selling price improved 3% on the prior year and sales of more differentiated and higher-priced products continued to grow well. This trend has been evident for some years. Lon
Slide 9: USA Fibre Cement Strategy
USA Fibre Cement Strategy Aggressively grow market for fibre cement Grow our overall market position while defending our share in existing market segments Offer products with superior value to that of our competitors, introducing differentiated products to reduce direct price competition Our USA Fib
Slide 10: Asia Pacific Performance Improvement
Asia Pacific Performance Improvement +38% I would now like to talk about our Asia Pacific business. Asia Pacific Fibre Cement Our Asia Pacific Fibre Cement business recorded very solid performance, with net sales up 2% in Australian Dollars and 26% in US dollars. Sales volumes were up 9%, and EBIT 1
Slide 11: ANZ Marketing Initiatives
ANZ Marketing Initiatives ANZ Marketing Initiatives ANZ Marketing Initiatives We see this as a sound opportunity and our Australian and New Zealand businesses have put in place a number of initiatives designed to encourage designers, architects and homeowners to incorporate our lightweight building
Slide 12: ANZ New Products
ANZ New Products ANZ New Products Linea(r) Weatherboards Eclipsa(tm) Pre-painted Eves ConText(tm) Facade System We are pursuing increased sales, with a range of unique products and systems; the slide shows some examples.
Slide 13: Asia Pacific Fibre Cement Strategy
Strategy Grow primary demand for fibre cement Vigorously protect and grow category share in existing market segments Leverage our superior technology to offer differentiated products and systems with superior value to those of competitors Ongoing manufacturing improvements to further lower cost of p
Slide 14: Other Fibre Cement: Chile Fibre Cement - Key Points
Other Fibre Cement Chile Fibre Cement - Key Points Net sales up 139% Full year EBIT1 positive Chile Fibre Cement Our Chilean business provides us with a small but profitable toehold in South America. Last year, the business delivered a strong performance, with net sales up 139% in local currency and
Slide 15: Other Fibre Cement: USA Hardie Pipe - Key Points
Other Fibre Cement USA Hardie(r) Pipe - Key Points Sales grew 95% Improved performance Improved performance Improved performance Improved performance Improved performance Improved performance Improved performance Hardie® Pipe Our USA Hardie® Pipe business achieved very strong net sales growth last y
Slide 16: Europe Fibre Cement
Europe Completed first year Growing revenue Long term potential Europe Fibre Cement In Europe, our business has just completed its first year since start up. It is very early days, but we have made acceptable progress and are growing revenues in markets that offer us long-term potential. We are init
Slide 17: Artisan Roofing
Artisan(r) Roofing Artisan(r) Roofing Artisan® Roofing For some time, we have been developing a unique fibre cement roofing product. We have now started to commercialise this technology, initially through the development, and now with the launch, of a “thick butt wood shake product”. The slide shows
Slide 18: Artisan Roofing
Artisan(r) Roofing Artisan(r) Roofing Our Artisan® Roofing business is making good progress refining the manufacturing process in the pilot plant in Fontana, California. Trial installations have been successful and we believe end-market interest in the product is strong. We are probably at least two
Slide 19: Research and Development
Research and Development Research and Development Research and Development Research and Development Research and Development continues to be one of the key investments we make in our business and it is the key driver of our long-term growth and our ability to sustain a competitive advantage. We have
Slide 20: Capital Expenditure
Capital Expenditure Capital Expenditure We also invested heavily in capital expenditure projects during the year, spending US$74.1 million. The majority of this sum was spent in the United States, and a significant portion was on growth projects including: the pre-finishing and trim lines in Peru, I
Slide 21: Operating Highlights 1st Quarter
Operating Highlights 1st Quarter USA Fibre Cement EBIT1 up 17% Australia and New Zealand Fibre Cement EBIT1 up 31% Philippines - positive EBIT1 Chile - positive EBIT1 Hardie(r) Pipe - improved operating performance Artisan roofing - completed production trials and commissioning work Since then, we h
Slide 22: Outlook
Outlook Strong growth momentum of 1st quarter to continue into 2nd quarter Prospects encouraging Continued EBIT1 growth Looking ahead to the remainder of the year the company believes the strong growth momentum evident in the first quarter will continue during the second quarter and the prospects fo
Slide 23: Looking Ahead
Looking Ahead Clear vision Successful strategies Sustainable competitive advantage We have many challenges to address as we continue to grow our business around the world. We have a clear vision to achieve this, and will combine this with successful strategies which we have implemented over many yea
Slide 24: Definitions: EBIT
1Definitions EBIT - EBIT is defined as operating income. We believe EBIT to be relevant and useful information as it is a primary measure used by our management to measure the operating profit or loss of our business. EBIT is one of several metrics used by our management to measure the cash generate
Slide 25: Disclaimer
Disclaimer This presentation contains forward-looking statements. Words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "should," "aim" and similar expressions are intended to identify forward-looking statements but ar
Slide 26: Annual Information Meeting September 2004
Annual Information Meeting 15 September 2004
Hardie James Industries — Shareholder Meeting (September 2004) on 6ix