James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q2 FY24 Earnings Presentation
28 slides from James Hardie Industries's earnings presentation, Nov 8, 2023
Slide 1: Q2 FY24 Management Presentation
Q2 FY24 Management Presentation 8 NOVEMBER 2023
Slide 2: Cautionary Note on Forward-Looking Statements
JAMES HARDIE Q2 FY24 RESULT S CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Management Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the “Com
Slide 3: Agenda
JAMES HARDIE Q2 FY24 RESULT S AGENDA • Introduction: Rachel Wilson, CFO • Strategy, Zero Harm & HOS Update Aaron Erter CEO • Financial Results • Outlook and Guidance • Q&A Rachel Wilson CFO Page 3
Slide 4: Strategy, Zero Harm & HOS Update
Strategy, Zero Harm & HOS Update 8 NOVEMBER 2023
Slide 5: CEO Operations Update: Outperforming in the Markets We Participate
JAMES HARDIE Q2 FY24 RESULT S CEO OPERATIONS UPDATE: OUTPERFORMING IN THE MARKETS WE PARTICIPATE Managed Decisively… …Delivered Strong Q2 Results Continue Strong Execution of • Global Net Sales of ~US$1.0 Billion Flat Our Strategy vs pcp • Record Global Adjusted Net Income of US$178.9 Million up 2
Slide 6: Global Strategic Framework
JAMES HARDIE Q2 FY24 RESULT S GLOBAL STRATEGIC FRAMEWORK Homeowner Focused, Customer and Contractor Driven™ Strategic Initiatives Enabled by Profitably grow and take share where we Customer Integration 1 have the right to win Innovative Solutions Bring our customers high valued, 2 differentiated sol
Slide 7: Prioritizing Safety, Committing to Zero Harm
JAMES HARDIE Q2 FY24 RESULT S ZERO HARM Prioritizing Safety, Committing to Zero Harm Launched inaugural Global Zero Harm Continuously improve our Zero Harm Month in October across all our sites culture, processes and systems North America DART (Days Away Safety is Embedded in Our Industry Restricted
Slide 8: HOS: How Work Gets Done
JAMES HARDIE Q2 FY24 RESULT S HARDIE OPERATING SYSTEM (HOS) HOS: How Work Gets Done HMOS $100M Expected Cumulative Global Savings in Manufacturing FY24-FY261 Enterprise Management System Procurement Savings and R&D Value Improvement Procurement $60M Manufacturing Expected Cumulative Global Procureme
Slide 9: Financial Results
Financial Results 8 NOVEMBER 2023
Slide 10: Global Results – Q2 FY24
JAMES HARDIE Q2 FY24 RESULT S GLOBAL RESULTS – Q2 FY24 Global Global Adjusted Global First Half Operating Net Sales Net Income Adj. EBITDA% Cash Flow ~$1.0Bn $178.9M 28.6% $459.1M Flat +2% +240bps +74% vs. pcp vs. pcp vs. pcp vs. pcp Record Quarterly Adjusted Net Income Record First Half Operating C
Slide 11: Global Adjusted Net Income
JAMES HARDIE Q2 FY24 RESULT S GLOBAL ADJUSTED NET INCOME Adjusted Net Income of $178.9 million increased $3.1 million versus the prior corresponding period • North America and APAC EBIT growth US$ Millions contributed $21.3 million • SG&A increased 23% to $152.8 million, primarily driven by strategi
Slide 12: North America Summary
JAMES HARDIE Q2 FY24 RESULT S NORTH AMERICA SUMMARY Q2 FY24 6 Months FY24 Q2 Net Sales of US$734.4 Million 773.2 mmsf 1,521.0 mmsf Sales Volume • Volume down 5%; the best performing regions were South- -5% -7% Central & North-West US$944 /msf US$934 /msf Average Net Sales Price • Average Net Sales P
Slide 13: APAC Summary
JAMES HARDIE Q2 FY24 RESULT S APAC SUMMARY Q2 FY24 6 Months FY24 Q2 Net Sales of A$225.1 Million 142.5 mmsf 280.9 mmsf Sales Volume • Average Net Sales Price up 15% -9% -8% A$1,401 /msf A$1,380 /msf • Volume down 9%; the best performing region was Australia Average Net Sales Price +15% +14% A$225.1
Slide 14: Europe Summary
JAMES HARDIE Q2 FY24 RESULT S EUROPE SUMMARY Q2 FY24 6 Months FY24 Q2 Net Sales of €107.5 Million 175.0 mmsf 362.0 mmsf Sales Volume • Average Net Sales Price up 20% -15% -17% €486 /msf €482 /msf • Volume down 15%, driven by reduced market activity in Fiber Average Net Sales Price Gypsum +20% +21% €
Slide 15: Liquidity, Cash Flow, Capital Allocation & Capital Expenditure
JAMES HARDIE Q2 FY24 RESULT S LIQUIDITY, CASH FLOW, CAPITAL ALLOCATION & CAPITAL EXPENDITURE Cash Flow Capital Allocation • YTD FY24 Operating Cash Flow of $459.1 million Framework • Invest in Organic Growth • YTD FY24 Working Capital reduced by $82.7 million • Maintain Flexible Balance Sheet • Depl
Slide 16: Outlook and Guidance
Outlook and Guidance 8 NOVEMBER 2023
Slide 17: FY24 Market Outlook: North America
JAMES HARDIE Q2 FY24 RESULT S FY24 MARKET OUTLOOK: NORTH AMERICA1 External Range Change vs External Data Provider Average Presented August 2023 US Single Family New Construction -4% to -12% Calendar 2023 Growth Outlook2 +3% Average: -9% External Range US Multi Family New Construction -10% to -25% Ca
Slide 18: North America – FY24 Quarterly Volume Sensitivity
JAMES HARDIE Q2 FY24 RESULT S NORTH AMERICA – FY24 QUARTERLY VOLUME SENSITIVITY Quarterly Volume Scenarios 650 750 850+ mmsf mmsf mmsf Estimated Quarterly EBIT Margin (%) <28% 30 – 32% 32+% Given the uncertain nature of the US housing market, we have modeled our expected quarterly EBIT margin outcom
Slide 19: Guidance: Q3 Fiscal Year 2024
JAMES HARDIE Q2 FY24 RESULT S GUIDANCE: Q3 FISCAL YEAR 2024 North America Volume 730 – 760 million standard feet North America EBIT Margin 30% - 32% Adjusted Net Income US$ 165 – 185 million Positioned for a Strong Third Quarter Page 19
Slide 20: James Hardie – A Global Growth Company
JAMES HARDIE Q2 FY24 RESULT S JAMES HARDIE – A GLOBAL GROWTH COMPANY Strong Growth Opportunities Experienced Management Team Brand of Choice Strong Balance Sheet & Cash Generation Innovation Pipeline Attractive Returns Integrated Localized Supply Chain Premium Products and Services Multi-Segment Foc
Slide 21: Questions
G JamesHardie aS , OVEMBE p36 )3__ ott
Slide 22: Appendix
Appendix 8 NOVEMBER 2023
Slide 23: Non-GAAP Financial Measures
JAMES HARDIE Q2 FY24 RESULT S NON-GAAP FINANCIAL MEASURES This Management Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Media Release and Condense
Slide 24: Non-GAAP Financial Measures
JAMES HARDIE Q2 FY24 RESULT S NON-GAAP FINANCIAL MEASURES Adjusted EBIT and Adjusted EBITDA US$ Millions Three and Six Months Ended 30 September 6 Months 6 Months Q2 FY24 Q2 FY23 FY24 FY23 EBIT $ 223.4 $ 226.6 $ 457.3 $ 447.9 Asbestos: Asbestos adjustments (gain) loss (3.8) (8.5) (3.9) (21.7) AICF S
Slide 25: Non-GAAP Financial Measures
JAMES HARDIE Q2 FY24 RESULT S NON-GAAP FINANCIAL MEASURES Asia Pacific Fiber Cement Segment EBIT and EBITDA US$ Millions Three and Six Months Ended 30 September 6 Months 6 Months Q2 FY24 Q2 FY23 FY24 FY23 Asia Pacific Fiber Cement Segment EBIT $ 44.4 $ 38.3 $ 90.9 $ 74.9 Asia Pacific Fiber Cement Se
Slide 26: Non-GAAP Financial Measures
JAMES HARDIE Q2 FY24 RESULT S NON-GAAP FINANCIAL MEASURES Adjusted interest, net US$ Millions Three and Six Months Ended 30 September 6 Months 6 Months Q2 FY24 Q2 FY23 FY24 FY23 Interest, net $ 4.5 $ 8.2 $ 10.3 $ 17.0 AICF interest income, net (2.2) (0.8) (4.5) (1.0) Adjusted interest, net $ 6.7 $ 9
Slide 27: Non-GAAP Financial Measures
JAMES HARDIE Q2 FY24 RESULT S NON-GAAP FINANCIAL MEASURES Adjusted diluted earnings per share Three and Six Months Ended 30 September 6 Months 6 Months Q2 FY24 Q2 FY23 FY24 FY23 Adjusted net income (US$ Millions) $ 178.9 $ 175.8 $ 353.4 $ 330.1 Weighted average common shares outstanding - 440.8 446.
Slide 28: Q2 FY24 Management Presentation
Q2 FY24 Management Presentation 8 NOVEMBER 2023
James Hardie Industries — Q2 FY24 Earnings Presentation on 6ix