James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (September 2013)
36 slides from James Hardie Industries's investor presentation, Sep 24, 2013
Slide 1: Investor Presentation September 2013
Exhibit 99.1 INVESTOR PRESENTATION SEPTEMBER 2013
Slide 2: Disclaimer
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 circulars, invitation me
Slide 3: Agenda
• Business Overview • USA & Europe Fibre Cement • Asia Pacific Fibre Cement • Group Outlook • Summary • Appendix AGENDA In this Investor Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financial measures included in the Definitions sec
Slide 4: 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 and net cash are as at June 2013. Net cash of US$198m has been reduced
Slide 5: Group Overview
1 US Millions Q1 FY2014 Q1 FY2013 % Change FY2013 FY2012 % Change Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments 52.0 43.8 19 140.8 144.3 (2) Comparisons are of the 1 quarter FY14 and full fiscal year as at 31 Mar
Slide 6: 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 JHX: A WORLD LEADER IN FIBRE CEMENT
Slide 7: Global Business Portfolio
USA and Europe Fibre Cement Asia-Pacific Fibre Cement All numbers are for the 1st quarter ended 30 June 2013 *EBIT – Excludes Research and Development EBIT, Asbestos-related items, Asset impairment charges, New Zealand product liability expenses and general corporate costs GLOBAL BUSINESS PORTFOLIO
Slide 8: Fibre Cement: 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 ? ? ? ? ? ? ? ? ? ? ? ? ? ? FIBRE CEMENT: SUPERIOR PRODUCT PERFORMANCE Fire resistant Hail resistant Re
Slide 9: Product Leadership Example: HardieZone System
• 7 Generation versus 2 Generation generic fibre cement • The HardieZone ® System represents a logical extension of Hardie technology PRODUCT LEADERSHIP EXAMPLE: HARDIEZONE ® SYSTEM ® th nd
Slide 10: The USA Business: Largest Fibre Cement Producer in North America
THE USA BUSINESS: LARGEST FIBRE CEMENT PRODUCER IN NORTH AMERICA
Slide 11: USA Fibre Cement
Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau Market and category share tracking as planned in FY14 USA FIBRE CEMENT
Slide 12: USA and Europe Fibre Cement
USA AND EUROPE FIBRE CEMENT Excludes asset impairment charges of US$14.3 million in th quarter FY12, US$5.8 million in rd quarter FY13 and US$11.1 million in th quarter FY13
Slide 13: Average Net Sales Price
US$ per MSF Average Net Sales Price (US dollars) 670 uss6s0 620 590 550 Fy09 Fy10 FYI FY12 FY13 QiFyt4
Slide 14: U.S. Housing Starts, Calendar Quarters
(Thousands of Starts) 1200 se SS ) James Hardie U.S. Housing Starts, Calendar Quarters [Housing starts -—-%4Growth (same QuPY) 20%
Slide 15: Asia Pacific Fibre Cement
Five manufacturing plants in Asia Pacific Net sales US$376m EBIT US$84m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities Net Sales and EBIT equal Q1 FY14 annualised. EBIT excludes New Zealand product liability expenses ASIA PACIFIC FIBRE CE
Slide 16: Asia Pacific Fibre Cement - Examples
Ceilings and partitions Philippines Exterior cladding General purpose flooring Australia New Zealand Interior walls Australia ASIA PACIFIC FIBRE CEMENT - EXAMPLES
Slide 17: Dividend Policy and Share Buyback
• 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 to 5% of issued capital over the next 12 months.
Slide 18: 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 capacity expansions through re-commi
Slide 19: 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 protected technology Ongoing commitment to r
Slide 20: Appendix
APPENDIX
Slide 21: 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 Introduce differentiated products to deliver a sustainable competitive advantage GLOBAL STRATEGY
Slide 22: James Hardie Financial Summary
(7) James Hardie 3 Months 3 Months 3 Months FY2014 FY2013 FY2012 EPS (Diluted)’ 11.7 10.0c 9.0¢ EBIT/ Sales (EBIT margin) * 18.1% 17.0% 18.0% Gearing Ratio’ (16.5)% (32.1)% 2.1% Net Interest Expense Cover’ 84.4x 57.7x 37.7x Net Interest Paid Cover’ 67.5x 115.4x 33.2x Net Debt Payback - - 0.4yrs 1 Ex
Slide 23: USA and Europe Fibre Cement Year Results Overview
FY09 FY10 FY11 FY12 FY13 Net Sales US$m Sales Volume mmsf 1,527 1,304 1,248 1,332 1,489 Average Price US$ per msf EBIT US$m EBIT Margin % Excludes asset impairment charges of US$14.3 million and US$16.9 million in FY12 and FY13, respectively USA AND EUROPE FIBRE CEMENT YEAR RESULTS OVERVIEW
Slide 24: Asia Pacific Fibre Cement 5 Year Results Overview
FY09 FY10 FY11 FY12 FY13 Net Sales US$m Sales Volume mmsf Average Price US$ per msf EBIT US$m EBIT Margin % Excludes New Zealand product liability expenses of US$5.4 million and US$13.2 million in FY12 and FY13, respectively ASIA PACIFIC FIBRE CEMENT 5 YEAR RESULTS OVERVIEW
Slide 25: Financial Summary
Asia Pacific Fibre Cement EBIT excludes New Zealand product liability expenses of US$4.6 million and nil in Q1 ‘14 and Q1 ‘13, respectively FINANCIAL SUMMARY
Slide 26: Endnotes: Definitions
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 Financial Statements. ENDNOTES Def
Slide 27: Financial Measures - US GAAP equivalents
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 financial statements under US GAAP, the followin
Slide 28: 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 standard square foot of 5/16” thickness Fin
Slide 29: EBIT and EBIT margin excluding asbestos
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 US GAAP and should not be considered to be more meanin
Slide 30: Net operating profit excluding asbestos and other items
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 not a measure of financial performance under US GAAP and should n
Slide 31: Diluted earnings per share excluding asbestos and other items
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 adjustments is not a measure of financial performance under US GAAP
Slide 32: Effective tax rate excluding asbestos and other items
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 financial performance under US GAAP and should not be considered to be
Slide 33: Adjusted EBITDA
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 of profitability or liquidity. Not all companies calculate Adjuste
Slide 34: General corporate costs excluding ASIC expenses
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 should not be considered to be more meaningful than general corp
Slide 35: SG&A excluding New Zealand product liability expenses
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 under US GAAP and should not be considered to be more meaningful tha
Slide 36: James Hardie
@ sames Hardie
James Hardie Industries — Investor Presentation (September 2013) on 6ix