James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2019)
28 slides from James Hardie Industries's investor day presentation, Sep 12, 2019
Slide 1: Asia Pacific
Exhibit 99.4 ASIA PACIFIC Conrad Groenewald, General Manager1
Slide 2: Agenda
AGENDA • Driving Growth Above Market − APAC Strategy − Australia Execution − Philippines Execution • Driving Lean Manufacturing −APAC − New Zealand Manufacturing Recovery 2
Slide 3: Agenda
AGENDA • Driving Growth Above Market − APAC Strategy − Australia Execution − Philippines Execution • Driving Lean Manufacturing −APAC − New Zealand Manufacturing Recovery 3
Slide 4: APAC historically grown above market while delivering ~25% EBIT margins
APAC HAS HISTORICALLY GROWN ABOVE MARKET WHILE DELIVERING 20-25% EBIT MARGINS • Proven track record of delivering growth above market with strong EBIT margin • Business is set up to deliver 3-5% growth above market throughout FY20-FY22 • Continued execution at high level APAC Yearly EBIT and EBIT Ma
Slide 5: How James Hardie APAC outperforms the market
HOW JAMES HARDIE APAC OUTPERFORMS THE MARKET End User & Customer Insights Differentiated Products and Growth Systems Focused Tools Sustainable growth above market Customer Focused Strong Demand Channel Network Generation 5
Slide 6: APAC segment diversity
APAC SEGMENT DIVERSITY Australia New Zealand Philippines Source: Internal New Residential - New Residential - Alterations and Commercial Single Detached Medium Density Additions (A&A) 6
Slide 7: APAC insights
APAC INSIGHTS Best In Industry Insights: Consumers Developer / Builders & Trades Designers / Architects Australia 16,600 1,800 2,300 New Zealand 1,500 1,500 500 JH Systems - 500 800 Philippines 600 350 900 Source: Internal, 2019 7
Slide 8: APAC insights into action
APAC INSIGHTS INTO ACTION INSIGHTS & DATA • Life-stage consumer segmentation • Builder segmentation to • Home building path to purchase understand key business drivers • Leading design trends - Hamptons • Insights on the Millennial buyer • Insights on the Millennial buyer • Speed of install data Fro
Slide 9: APAC differentiated products & systems
APAC DIFFERENTIATED PRODUCTS & SYSTEMS 9
Slide 10: APAC differentiated products & systems
APAC DIFFERENTIATED PRODUCTS & SYSTEMS 10
Slide 11: APAC strong channel network
APAC STRONG CHANNEL NETWORK Australia New Zealand Philippines Kelly Hardware & EVY 11
Slide 12: Agenda
AGENDA • Driving Growth Above Market − APAC Strategy Detached NC - Win vs. Brick − Australia Execution A&A – Win via channel & digital − Philippines Execution • Driving Lean Manufacturing −APAC − Australia Execution − New Zealand Manufacturing Recovery 12
Slide 13: Detached new construction – win versus brick
DETACHED NEW CONSTRUCTION – WIN VERSUS BRICK Large opportunity remains for Fiber Materials Share ‐ Detached Homes Cement growth in detached new construction Brick Veneer (Timber Frame Construction) We will capitalize on current market trends: Double Brick • Consumer aesthetic preferences shifting Li
Slide 14: James Hardie brick conversion program (Queensland)
JAMES HARDIE BRICK CONVERSION PROGRAM Type Residential Mass Housing Application Cladding Reasons for Conversion • A differentiated ‘Look’ • Speed of Install • More living space • Less on site trades Location Queensland 14
Slide 15: James Hardie brick conversion program (Victoria)
JAMES HARDIE BRICK CONVERSION PROGRAM Type Residential Mass Housing Application Cladding Reasons for Conversion • A differentiated ‘Look’ • Design and construction support Location Victoria 15
Slide 16: James Hardie brick conversion program (New South Wales)
JAMES HARDIE BRICK CONVERSION PROGRAM Type Residential Mass Housing Application Cladding Reasons for Conversion • Leading design trends - Hamptons • Insights on the Millennial buyer • Speed of install Location New South Wales 16
Slide 17: Drive A&A via channel
DRIVE A&A VIA CHANNEL Converting commercial renovators via James Hardie Channel programs: • Entice via in-store promotions • Engage via trade events • Educate via training seminars 17
Slide 18: Drive A&A via digital
DRIVE A&A VIA DIGITAL JH will provide a digital platform to Recruit, Educate and Connect small builders and decking contractors to consumers on the renovation path to purchase via the MyHardie program MyBuilder portal: • Feature as • Job management a Hardies’ builder portal • Leverage the Hardie • H
Slide 19: Agenda
AGENDA • Driving Growth Above Market − APAC Strategy − Australia Execution Strong value proposition − Philippines Execution Increased retailer density • Driving Lean Manufacturing −APAC − Australia Execution − New Zealand Execution 19
Slide 20: Fiber cement retailer density
FIBER CEMENT RETAILER DENSITY • Store openings continue, creating link between distributor and retailer − Retailers engage in carpenter training programs Source: Internal, 2019 Images of retailers with product on shelves 20
Slide 21: Fiber cement value proposition - plywood
FIBER CEMENT VALUE PROPOSITION - PLYWOOD Type: Residential Mass Housing Application Won: Eaves Conversion from: Plywood Reasons for Conversion: • Durability (moisture, fire & termite) • Value Engineering • Price Value Location: South Luzon Fiber Cement Value Proposition vs. Plywood: Ease of Painting
Slide 22: Fiber cement value proposition - plasterboard
FIBER CEMENT VALUE PROPSITION - PLASTERBOARD Type: Commercial – Hotel & Casino Application Won: Wet Area Walls & Common Area Conversion from: Plasterboard 9mm Reasons for Conversion: • Durability (moisture for wet area & impact for common areas) • Cost Efficiency Developer initially wanted to use (2
Slide 23: Agenda
AGENDA • Driving Growth Above Market − APAC Strategy − Australia Execution − Philippines Execution • Driving Lean Manufacturing −APAC − New Zealand Manufacturing Recovery 23
Slide 24: APAC lean manufacturing - history
APAC LEAN MANUFACTURING - HISTORY • Started Lean journey in Rosehill toward the end of FY14, replicated: • Carole Park Q3 FY15 • Penrose Q1 FY17 • Cabuyao Q3 FY17 • Heavy focus on Daily Management System to “run the business” • Transitioned to “improve the business”, the first iteration of the Roll
Slide 25: APAC lean manufacturing – path forward
APAC LEAN MANUFACTURING – PATH FORWARD • A$27 million in targeted savings from lean initiatives FY20-FY22 • Intense focus on RTY in addition to net operating hours • Replicate key learnings from North America lean progress • Maximize Operator Engagement • FY20 is on-track 25
Slide 26: Agenda
AGENDA • Driving Growth Above Market − APAC Strategy − Australia Execution − Philippines Execution • Driving Lean Manufacturing −APAC − New Zealand Manufacturing Recovery 26
Slide 27: New Zealand manufacturing
NEW ZEALAND MANUFACTURING Leverage HMOS platforms to improve manufacturing: • Focus on Zero Harm • Leadership and Employee Engagement is the key to success •Drive: − Operator Standard Work − Leader Standard Work − Daily Management System as foundations to performance • Reduce variability, then drive
Slide 28: Key messages
KEY MESSAGES • Relentless focus on execution to drive Growth Above Market across network • Execute lean manufacturing initiatives to enable continued and sustainable cost improvements • Reaffirm growth above market of 3-5% and EBIT Margin of 20-25% 28
James Hardie Industries — Investor Day (September 2019) on 6ix