James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2019)
29 slides from James Hardie Industries's investor day presentation, Sep 12, 2019
Slide 1: Growing Europe to 1bn € at Hardie like returns
Exhibit 99.3 Growing Europe to 1bn € at Hardie like returns Jörg Brinkmann, Managing Director1
Slide 2: A driven team managing James Hardie Europe
A driven team managing James Hardie Europe 2
Slide 3: Agenda
Agenda • JHEU – platform built for accelerated growth • Growing fiber cement in Europe • Increased profitability through better operations 3
Slide 4: Agenda
Agenda • JHEU – platform built for accelerated growth • Growing fiber cement in Europe • Increased profitability through better operations 4
Slide 5: JHEU is a high performing building solution company
JHEU is a high performing building solution company • Best all-around interior liner • Best all-around exterior solution • Supreme fire-protection • One layer instead of two layers • Low maintenance • Weather, frost and water resistance • Outstanding fire, sound and impact • Durable beauty • Type X
Slide 6: We generate growth in all market segments
We generate growth in all market segments Residential 40% Commercial 20% Repair & Remodel 40% Source: JH internal 6
Slide 7: We operate an effective sales and marketing organization
We operate an effective sales and marketing organization Digital tools 13 Technical staff 42 Sales and Marketing staff >300 Test certificates >5,000 Active customers >5,300 Unique website visitors / day >10,000 Source: JH internal 7
Slide 8: Case study: Digital specification tool
Case study: Digital specification tool Winning inside and outside – digital project platform “Bluebeam” Source: JH internal 8
Slide 9: Case study: Installation video
Case study: Installation video Source: https://www.youtube.com/watch?v=GHwnJH_n4q4 9
Slide 10: We have a leading position in our fiber gypsum markets
We have a leading position in our fiber gypsum markets Country Fiber gypsum JH share share in interior lining market #1 #1 fermacell® brand awards #1 #1 #1 #1 Source: JH internal fermacell® Point-of-Sale presence in Bauhaus, Düsseldorf, Germany 10
Slide 11: Case study: Fiber gypsum value in commercial segment
Case study: Fiber gypsum value in commercial segment + +32 rooms vs. plan + All regulations met with one layer of FG solution Cabinn Metro, Copenhagen, Denmark Source: JH internal 11
Slide 12: We have a proven track-record of growing above market
We have a proven track-record of growing above market fermacell growth above market (indexed) fermacell Renovation Residential new build Commercial new build 15y-CAGR 250 5.3% 200 150 0.6% 100 -1.3% 50 2004 2007 2010 2013 2016 FY19 Source: JH internal, Euroconstruct (as of Mar-19), B+L Market resear
Slide 13: Well positioned to capture future market trends
Well positioned to capture future market trends WirtschaftsWoche, 28 August 2019 Fraunhofer research, 22 August 2019 • Lack of skilled labor • Lack of affordable housing Handelsblatt Edison, 4 October 2018 • Increased pre-fabrication • Need for ecological, light-weight construction Süddeutsche Zeitu
Slide 14: Agenda
Agenda • JHEU – platform built for accelerated growth • Growing fiber cement in Europe • Increased profitability through better operations 14
Slide 15: Our path to 1bn € is driven by fiber cement growth
Our path to 1bn € is driven by fiber cement growth Step-change, profitable growth to 1bn € business within 10 years Leverage Innovate Transform New fiber cement Fiber cement based on JH global portfolio Fiber gypsum Cement boards FY18 FY29 Source: JH internal 15
Slide 16: Fiber cement category share leveraging customer base
Fiber cement category share leveraging customer base • Leveraging on fermacell® JHEU market coverage customer access and supply- chain network European fiber cement cladding market ~5% ~700€m Source: JH internal, Etex annual report (2017), Cembrit annual report (2017), Source: JH internal, addresses
Slide 17: Case study: Winning fiber cement business in Denmark
Case study: Winning fiber cement business in Denmark HardiePlank® in Hammel, Denmark Joint delivery of HardiePlank® and fermacell® fiber gypsum boards in Denmark in 2019 HardiePlank® in Hinnerup, Denmark Source: JH internal 17
Slide 18: Case study: Synergistic solution for architects
Case study: Synergistic solution for architects Installation of HardiePanel® and fermacell® in Plelan-le-Grand, France in 2019 Installation of HardiePanel®, fermacell® fiber gypsum boards and fermacell® Powerpanel H2O boards in Sweden in 2019 Source: JH internal 18
Slide 19: Fiber cement growth through innovation
Fiber cement growth through innovation • Leveraging existing global fiber cement product platforms • Adjust Hardie offering to European market needs Western European facade market FC Wood Wooden planks in Sweden 3% Metal Light- Brick weight Other 500m sqm Concrete Render Source: JH internal, B+L (20
Slide 20: Case study: HardieWindbreaker launch
Case study: HardieWindbreakerTM launch HardieWindbreaker™ on JH websites HardieWindbreaker™ installation on site in Ashford, UK 20
Slide 21: Market share growth with transformational innovation
Market share growth with transformational innovation • Innovation for render-look market • Offering full systems as fast and efficient solutions Western European facade market FC Wood TM 3% Metal Easylap Light- Brick weight Other 500m sqm Concrete Render Source: JH internal, B+L (2018), Freedonia (2
Slide 22: Case study: Market Gemba of global innovation team
Case study: Market Gemba of global innovation team Façade in UK Façade in Switzerland Façade in Italy Façade in Germany Façade in Netherlands 22
Slide 23: Agenda
Agenda • JHEU – platform built for accelerated growth • Growing fiber cement in Europe • Increased profitability through better operations 23
Slide 24: Six plants operating in a truly European supply chain
Six plants operating in a truly European supply chain Fiber gypsum plants 4 Cement bonded plant 1 Raw materials plant 1 Warehouses 14 Truck deliveries / day 285 Source: JH internal 24
Slide 25: Production based on recycling and automation
Production based on recycling and automation Recycling paper in Münchehof, Germany Sustainability certificates Production line and control room in Wijchen, Netherlands 25
Slide 26: Our fiber gypsum network has further upside potential
Our fiber gypsum network has further upside potential • Focus on preventive maintenance and run-to-standard • Launch HMOS to unlock capacity • Invest in organization and capabilities to improve the business Annual output of fiber gypsum network (sqm) ~20% Value stream mapping and HMOS pre-launch in
Slide 27: Case study: Best-practice replication from US
Case study: Best-practice replication from US European Operations team meeting JH experts in US in July 2019 Implementation of Global Zero Harm Standards in European plants Source: JH internal 27
Slide 28: We are on a continuous improvement track
We are on a continuous improvement track • Leveraging global JH manufacturing know how • Best-practice sharing Continuous improvement track in recent period* Net productive hours vs. PY (%) Output (sqm) 2.6% 1.7% 1.5% 1.6% 0.3% Mar 19 Apr 19 May 19 Jun 19 Jul 19 Loading fermacell® fiber gypsum board
Slide 29: Growing Europe to 1bn € at Hardie like returns
Growing Europe to 1bn € at Hardie like returns • James Hardie Europe has the right platform and the right people for accelerated growth • We are well positioned for accelerated growth in fiber gypsum and fiber cement capitalizing on growing market trends • EBIT improvements will be driven by improvi
James Hardie Industries — Investor Day (September 2019) on 6ix