James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Shareholder Meeting (August 2010)
41 slides from James Hardie Industries's shareholder meeting presentation, Aug 13, 2010
Slide 1: Annual General Meeting August 2010
Annual General Meeting 12 August 2010
Slide 2: Disclaimer
Disclaimer This 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 United States Securities and Exchange Commission on Forms 20-F and 6-K, in the annual reports to shareholders, i
Slide 3: Chairman's Address - Michael Hammes
Annual General Meeting 12 August 2010 Chairman's Address - Michael Hammes
Slide 4: CEO's Presentation - Louis Gries
Annual General Meeting 12 August 2010 CEO's Presentation - Louis Gries
Slide 5: Agenda
Agenda Global strategy Results overview - Full Year 2010 and Q1 FY 2011 USA and Europe Fibre Cement Legacy issues update Group summary Group outlook 5
Slide 6: Global Strategy
Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Offer products with superior value to that of our competitors Introduce differentiated products to deliver a sustainable competitive advantage
Slide 7: Results Overview - Full Year 2010
Results Overview - Full Year 2010 Full year operating results reflect the benefits of lower input costs, lower warranty costs, reduced SG&A expenses and a higher average net sales price, compared to FY09 The net operating result including asbestos, ASIC expenses and tax adjustments for the full year
Slide 8: Results Overview - Q1 FY 2011
Results Overview - Q1 FY 2011 1st Quarter operating results reflect a challenging US operating environment, higher input costs (particularly pulp and freight in the US), a strong positive contribution by the Asia Pacific businesses and lower corporate costs. The net operating result including asbest
Slide 9: USA and Europe Fibre Cement: US housing starts
USA and Europe Fibre Cement Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau 9
Slide 10: USA and Europe Fibre Cement Primary Growth Performance
USA and Europe Fibre Cement Primary Growth Performance All market and market share figures are management estimates. 10
Slide 11: Average Net Sales Price - USA and Europe Fibre Cement
Average Net Sales Price US$ per MSF USA and Europe Fibre Cement US$657 11
Slide 12: USA and Europe Fibre Cement EBIT and EBIT Margin
USA and Europe Fibre Cement * Excludes impairment charges of US$45.6 million in Q4 FY08 12 EBIT and EBIT Margin* EBIT EBIT Margin
Slide 13: Legacy Issues Update
Legacy Issues Update Asbestos A contribution of A$72.8m (US$63.7m) was made to the AICF on 1 July 2010. James Hardie's contributions to AICF since its establishment in early 2007 total A$375.1m James Hardie is continuing to work with the NSW Government and the AICF to finalise the details of A$320m
Slide 14: Group Summary - Key ratios
Group Summary 1 Excludes asbestos adjustments, AICF SG&A expenses, AICF interest income, gain or impairment on AICF investments, tax benefits related to asbestos adjustments, ASIC expenses and tax adjustments 2 Excludes asbestos adjustments, AICF SG&A expenses and ASIC expenses 3 Includes restricted
Slide 15: Group Summary Operations
Group Summary Operations* Results continue to be affected by weak housing activity in the US Higher input costs in the US business, particularly pulp and freight, also significantly affected this quarter's result Earnings in the quarter benefitted from: the strong contribution of Asia Pacific busine
Slide 16: Group Outlook: United States and Asia Pacific
United States The recovery in the US remains weak and fragile Hopes for an accelerated recovery have dissipated as the expiry of the US government tax incentive at the end of April 2010, together with low consumer confidence and continuing competition form foreclosed properties, combined to inhibit
Slide 17: Items of Business
Annual General Meeting 12 August 2010 Items of Business
Slide 18: Resolution 1: Report and Accounts
Receive and adopt the Dutch annual accounts for the year ended 31 March 2010 Publish the annual accounts and the annual report for the year ended 31 March 2010 in the English language 18 Resolution 1: Report and Accounts
Slide 19: Resolution 1: Proxy Results
Resolution 1: Report and Accounts Proxy results: 19 Votes % Total valid proxies received 301,935,964 For 301,217,293 99.80 Against 92,396 0.03 Open 502,321 0.17 Abstain 123,954 NA Excluded 0 NA
Slide 20: Resolution 2: Adopt Remuneration Report
20 Resolution 2: Adopt Remuneration Report Adopt the Remuneration Report of the company for the year ended 31 March 2010 This is an advisory resolution only
Slide 21: Resolution 2: Proxy Results
Resolution 2: Adopt Remuneration Report Proxy Results 21 Votes % Total valid proxies received 301,943,774 For 283,092,340 94.10 Against 17,233,153 5.73 Open 501,025 0.17 Abstain 1,117,256 NA Excluded 0 NA
Slide 22: Resolution 3: Re-election and Election of Directors
22 Resolution 3: Re-election and Election of Directors Re-elect Mr D Harrison Re-elect Mr D McGauchie Elect Mr D Dilger
Slide 23: Resolution 3(a): Re-elect Mr D Harrison Proxy Results
Resolution 3(a): Re-elect Mr D Harrison Proxy Results 23 Votes % Total valid proxies received 301,878,751 For 293,539,307 97.24 Against 7,826,523 2.59 Open 512,921 0.17 Abstain 65,013 NA Excluded 0 NA
Slide 24: Resolution 3(b): Re-elect Mr D McGauchie Proxy Results
Resolution 3(b): Re-elect Mr D McGauchie Proxy Results 24 Votes % Total valid proxies received 301,961,798 For 255,415,724 84.61 Against 45,986,269 15.23 Open 497,395 0.16 Abstain 62,410 NA Excluded 0 NA
Slide 25: Resolution 3(c): Elect Mr D Dilger Proxy Results
Resolution 3(c): Elect Mr D Dilger Proxy Results 25 Votes % Total valid proxies received 301,944,764 For 300,230,876 99.45 Against 1,136,792 0.38 Open 513,583 0.17 Abstain 63,513 NA Excluded 0 NA
Slide 26: Resolution 4: Authority to Fix External Auditor Remuneration
26 Resolution 4: Authority to Fix External Auditor Remuneration That the Board of Directors be authorised to fix the remuneration of the external auditors for the financial year ending 31 March 2011
Slide 27: Resolution 4: Proxy Results
Resolution 4: Authority to Fix External Auditor Remuneration Proxy Results 27 Votes % Total valid proxies received 301,890,703 For 300,995,497 99.73 Against 293,876 0.10 Open 520,675 0.17 Abstain 80,655 NA Excluded 0 NA
Slide 28: Resolution 5: Grant Executive Incentive Program RSUs to CEO
28 Resolution 5: Grant Executive Incentive Program RSUs to CEO Grant Executive Incentive Program RSUs and shares to CEO, Louis Gries, in accordance with the terms of the Long Term Incentive Plan and on the basis of Explanatory Notes
Slide 29: Resolution 5: Proxy Results
Resolution 5: Grant Executive Incentive Program RSUs to CEO Proxy Results 29 Votes % Total valid proxies received 301,939,829 For 295,695,695 98.27 Against 4,787,398 1.59 Open 433,712 0.14 Abstain 448,895 NA Excluded 574,129 NA
Slide 30: Resolution 6: Grant Relative TSR RSUs to CEO
30 Resolution 6: Grant Relative TSR RSUs to CEO Grant Relative TSR RSUs and shares to CEO, Louis Gries, in accordance with the terms of the Long Term Incentive Plan and on the basis of Explanatory Notes
Slide 31: Resolution 6: Proxy Results
Resolution 6: Grant Relative TSR RSUs to CEO Proxy Results 31 Votes % Total valid proxies received 301,933,829 For 281,569,796 93.58 Against 18,906,297 6.28 Open 433,712 0.14 Abstain 449,233 NA Excluded 574,791 NA
Slide 32: Other Business
Annual General Meeting 12 August 2010 Other Business
Slide 33: Annual General Meeting August 2010
Annual General Meeting 12 August 2010
Slide 34: Endnotes
Endnotes 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 Management's Analysis of Results, a Media Release and a Financial Report. Definitions Financial Measures - US GAA
Slide 35: Financial Ratios
Financial Ratios Gearing Ratio - Net debt (cash) divided by net debt (cash) plus shareholders' equity. Net interest expense cover - EBIT divided by net interest expense. Net interest paid cover - EBIT divided by cash paid during the period for interest, net of amounts capitalised. Net debt payback -
Slide 36: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures EBIT and EBIT margin excluding asbestos and ASIC expenses - EBIT and EBIT margin excluding asbestos and ASIC expenses are not measures of financial performance under US GAAP and should not be considered to be more meaningful than EBIT and EBIT margin. James Hardie has
Slide 37: Non-US GAAP Financial Measures (continued)
Non-US GAAP Financial Measures (continued) Net operating profit excluding asbestos, ASIC expenses and tax adjustments - Net operating profit excluding asbestos, ASIC expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningfu
Slide 38: Non-US GAAP Financial Measures (continued)
Non-US GAAP Financial Measures (continued) Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments - Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be mo
Slide 39: Non-US GAAP Financial Measures (continued)
Non-US GAAP Financial Measures (continued) Effective tax rate excluding asbestos and tax adjustments - Effective tax rate excluding asbestos and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than effective tax rate. The com
Slide 40: Non-US GAAP Financial Measures (continued)
Non-US GAAP Financial Measures (continued) 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. N
Slide 41: Non-US GAAP Financial Measures (continued)
Non-US GAAP Financial Measures (continued) General corporate costs excluding ASIC expenses and domicile change related costs - General corporate costs excluding ASIC expenses and domicile change related costs is not a measure of financial performance under US GAAP and should not be considered to be
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