James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (October 2016)
24 slides from James Hardie Industries's investor day presentation, Oct 21, 2016
Slide 1: New Zealand Investor Day
For personal use only INVESTOR PRESENTATION New Zealand Investor Day 21st October 2016
Slide 2: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Management Presentation contains forward-looking statements. James Hardie Industries plc (the “company”) may from time to time make forward-looking statements in its For personal use only periodic reports filed with or furnished to the Securities an
Slide 3: Cautionary Note on Forward-Looking Statements (continued)
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS (continued) Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” For personal use only “objective,” “outlook” and sim
Slide 4: Note to the Reader
NOTE TO THE READER For personal use only As of 30 June 2016, the Company changed its reportable operating segments. Previously, the Company reported on three operating segments: (i) North America and Europe Fiber Cement, (ii) Asia Pacific Fiber Cement, and (iii) Research and Development. As of 30 Ju
Slide 5: Agenda
AGENDA For personal use only • James Hardie – New Zealand Context • New Zealand Market Overview • Our Performance • Our Segment Focus • Summary PAGE 5
Slide 6: New Zealand Business in Context
NEW ZEALAND BUSINESS IN CONTEXT For personal use only Geographic Mix¹ Net Sales International 22% North America 78% EBIT ² International 20% North America 80% 1 All percentages are as at 30 June 2016 ² EBIT – excludes research and development, asbestos-related expenses and adjustments and New Zealan
Slide 7: We operate in the New Zealand building and construction market
WE OPERATE IN THE NEW ZEALAND BUILDING AND CONSTRUCTION MARKET, WITH A FOCUS ON BUILDINGS WHERE PEOPLE LIVE AND WORK For personal use only Renovation Commercial Detached Attached Medium density PAGE 7
Slide 8: Strong fundamentals driving new home growth
STRONG FUNDAMENTALS DRIVING NEW HOME GROWTH Value of all Construction Nationally For personal use only (Historic and Forecast) Strong fundamentals of low interest rates, population growth and investor activity is expected to prolong the upside in new residential activity for the remainder of FY17 an
Slide 9: Intensification of housing in key regions will continue
INTENSIFICATION OF HOUSING IN KEY REGIONS WILL CONTINUE For personal use only Dwelling Units Consented Nationally Intensification of housing will evolve and continue as a response to where people want to work and live, net migration, land availability and affordability, cultural changes and househol
Slide 10: Increasing density leads to a change to building material requirements
INCREASING DENSITY LEADS TO A CHANGE TO BUILDING MATERIAL REQUIREMENTS For personal use only Change in Construction Impacts Addressable Consents External Wall Area Insights • Over the past decade, medium density 29,000 2,900 Number of NewDwelling Consents dwellings have increased New Dwelling Extern
Slide 11: We continue to aggressively grow demand for our products
WE CONTINUE TO AGGRESSIVELY GROW DEMAND FOR OUR PRODUCTS For personal use only New Zealand Local Top Line Growth (Rolling 12 Months) NZ Local Top Line Growth, Rolling 12 months 75,000 120,000 65,000 110,000 55,000 45,000 100,000 35,000 90, 000 25,000 80, 000 15,000 70, 000 5,000 60, 000 -5, 000 1 3
Slide 12: Our distribution channels enable broad market access
OUR DISTRIBUTION CHANNELS ENABLE BROAD MARKET ACCESS For personal use only New Zealand Fibre Cement Market Commercial A&A/Reclad Builder Suppliers and Major Channel End User Segments Players Mid- Small- Large/Group Medium Home Builder Builders DIY PAGE 12
Slide 13: Our segment strategy for growth is clear
OUR SEGMENT STRATEGY FOR GROWTH IS CLEAR For personal use only Grow and Defend Leverage Take Share Channel, Defend Category Share Grow Share of Addressable off Timber Fight Imports and Brick + +++ Category Detached Homes / A&A Positioning “Hardie Every Home” New Products and Systems New Market Penet
Slide 14: Grow share of addressable market
GROW SHARE OF ADDRESSABLE MARKET For personal use only • Leverage tensions around brick • Leverage tensions around brick • Generate consumer demand for Residential Group • Build and strengthen alliances to drive James Hardie solutions Detached Builders segment growth • Leverage growth in demand for
Slide 15: Grow share of addressable market
GROW SHARE OF ADDRESSABLE MARKET For personal use only • Partner with channel to access SME’s • Partner for design built solutions Additions & Commercial • Education through aggregation events • Conversion of wet trades – win with Alterations WALL and FLOOR Solutions • Onsite training with LBP Build
Slide 16: Engagement with new markets: Asian market
ENGAGEMENT WITH NEW MARKETS: ASIAN MARKET For personal use only Est. 30% of construction activity influenced by Asian Stakeholders Asian Building our Brand with Industry 1st Initiatives Market • Dedicated Business Development Manager Engagement • Partnership with Asian market specialists and WeChat
Slide 17: Unlocking wins in the context of medium density is critical
UNLOCKING WINS IN THE CONTEXT OF MEDIUM DENSITY IS CRITICAL For personal use only • Expert knowledge and technical support for density stakeholders Medium Density • Influence and educate volume builders and developers engaging in density • Articulate and communicate James Hardie Value Drivers in the
Slide 18: Fire & acoustics solutions: offering lightweight alternative beyond concrete
FIRE & ACOUSTICS SOLUTIONS: OFFERING LIGHTWEIGHT ALTERNATIVE BEYOND CONCRETE For personal use only James Hardie Fire and Acoustic rated floor Lightweight intertenancy solution James Hardie Fire rated Wall Lightweight Exterior wall solution PAGE 18
Slide 19: New product & system innovation continue to drive future growth
NEW PRODUCT & SYSTEM INNOVATION CONTINUE TO DRIVE FUTURE GROWTH For personal use only NZ Recent Product Launches 2009 2010 2011 2012 2013 2014 2015 2016 Secura™ Flooring Stria® Cladding • Increased sales generated Axon® 400 through products / systems Axon® Grained developed less than 5 years ago Arc
Slide 20: Pre-cladding: accelerate growth in all segments
PRE-CLADDING: ACCELERATE GROWTH IN ALL SEGMENTS For personal use only • What is it? Rigid alternative to building paper • New HomeRAB® Pre-Cladding launched in FY15 • Strong penetration in all market segments Residential detached Volume Growth Medium Density 2016 Launch HomeRAB® Thermal Break (Steel
Slide 21: New Zealand input costs statistics
NEW ZEALAND INPUT COSTS STATISTICS • The price of Pulp, Paper & Paperboard For personal use only increased by 3% over the past two years • Concrete/Cement prices rose by 2% • Gas remained fairly stable while commercial electricity continues to bounce around • Freight prices have remained fairly cons
Slide 22: Linea TVC
For personal use only Linea TVC PAGE 22
Slide 23: In Summary
IN SUMMARY For personal use only • The New Zealand construction market is expected to remain strong in the medium term • James Hardie New Zealand is well positioned to continue to achieve primary demand growth, supported by a clear segment penetration strategy • We remain focused on the innovation a
Slide 24: Questions
For personal use only QUESTIONS
James Hardie Industries — Investor Day (October 2016) on 6ix