James Hardie Industries plc. · NYSE:JHX
James Hardie Industries — Hardie James Industries — Corporate Update (February 2007)
10 slides from James Hardie Industries's corporate update, Feb 7, 2007
Slide 1: Extraordinary Information Meeting February 2007
Extraordinary Information Meeting 1 February 2007 Louis Gries, CEO
Slide 2: Amended Final Funding Agreement
Amended Final Funding Agreement Consistent with original Heads of Agreement signed on 21 Dec 2004 Agreement attempts to balance: Need for James Hardie to remain profitable, financially strong and able to fund growth, while Making payments to the special purpose fund in respect of existing and future
Slide 3: Amended Final Funding Agreement Key Elements
Amended Final Funding Agreement Key Elements Establishment of a special purpose fund - Asbestos Injuries Compensation Fund (AICF) Initial funding of the AICF by James Hardie of A$184.3m based on KPMG Actuaries report at 30 September 2006 A rolling two year buffer to be established in AICF James Hard
Slide 4: Impact on James Hardie Initial Payment
Impact on James Hardie Initial Payment A$m Discounted central estimate for claims (before insurance recoveries) for two and a half years to 31 March 2009 200 Buffer 112 Year 3 discounted payment 88 Contribution to AICF operating expenses for period ending 31 March 2007 3 Estimated assets to be contr
Slide 5: Annual Funding Cap
Amended Final Funding Agreement Annual Funding Cap Expressed as a % of JHINV net operating cashflow of the financial year prior to annual payment date Defined as: operating cashflow after tax, interest and changes in working capital and JHINV asbestos payments, but before capital expenditure, repaym
Slide 6: Impact on James Hardie Annual Cashflow Caps - Earliest Step Down
Impact on James Hardie Annual Cashflow Caps - Earliest "Step Down" Step Down depends on actual level of claims and JHINV's operational performance Cap can reduce in 5% increments - but no reduction before YE 31 March 2012
Slide 7: July 2007 payment to AICF
Amended Final Funding Agreement July 2007 payment to AICF Payments by JHI NV of: A$189 million in July 2006 to the ATO (in part payment of an amended assessment received by RCI Pty Ltd for the 1999 financial year), and Initial Payment of A$184.3 million to AICF (expected in Feb 07) significantly red
Slide 8: Impact on James Hardie Estimated Net Assets of AICF Post Annual Payments
Impact on James Hardie Estimated Net Assets of AICF Post Annual Payments Source: Based on actuarial work by KPMG as at 30 September 2006 Note: Solid line assumes JHINV contribution is always below annual cashflow cap. Dotted line shows AICF net assets in FY08 if cap applies in relation to annual pay
Slide 9: Allowable Transactions/Distributions
Amended Final Funding Agreement Allowable Transactions/Distributions JHINV has agreed to observe a restriction on its ability to undertake certain transactions including certain distributions, reorganisations and non arms-length dealings There are a number of exemptions to the restriction including:
Slide 10: Allowable Transactions/Distributions (continued)
Amended Final Funding Agreement Allowable Transactions/Distributions (continued) JHINV does not expect that in the ordinary course the restriction will significantly restrain JHINV from funding and growing its existing business, making repayments of debt principal or making distributions to sharehol
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