James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (September 2015)
32 slides from James Hardie Industries's investor presentation, Sep 10, 2015
Slide 1: Business and Northern Markets September 2015
BUSINESS AND NORTHERN MARKETS September 2015 Exhibit 99.5
Slide 2: Disclaimer
PAGE DISCLAIMER FORWARD-LOOKING STATEMENTS This Investor Presentation contains forward-looking statements. James Hardie Industries plc (the “company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission, on F
Slide 3: Disclaimer (continued)
PAGE DISCLAIMER (continued) Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-lo
Slide 4: Strategy
STRATEGY
Slide 5: James Hardie US Strategy
PAGE JAMES HARDIE US STRATEGY 5 • Grow Fiber cement by substituting for both wood and vinyl based sidings and trim all market segments (35) • Maintain our Fiber cement category position by delivering differentiated value to supply chain participants, right through to the home owner (90) • Build the
Slide 6: Growth
PAGE 6 GROWTH - 35 Future Present • Focus on the wood look opportunity • Grow significantly against vinyl and wood based products • Grow in all segments
Slide 7: Hardie Value and Segments at Terminal Share
PAGE HARDIE VALUE AND SEGMENTS AT TERMINAL SHARE Segment Decision Maker Value Creation Share Implications 7 Repair and Remodel • Home Owner • Design • Low Maintenance ++ Single Family New Construction • Builder • Sell house for more, or sell homes faster + Multi Family • Management Firm/Owner • Tota
Slide 8: Defend the Category
PAGE DEFEND THE CATEGORY - 90 8 • Align with channel partners in a way that allows full market access and leverage their local service capabilities and customer relationships • Ensure that supply chain is built and operates in a manner that enables participants to earn acceptable category returns in
Slide 9: JH Value Proposition
PAGE JH VALUE PROPOSITION 9 James Hardie can deliver: • Superior design compared to vinyl with a true wood look • Superior durability and lower maintenance compared to real wood, hardboard/OSB exterior products • Scale, field support and business-building programs to all members in the value chain
Slide 10: Strategic Competitive Advantage
STRATEGIC COMPETITIVE ADVANTAGE
Slide 11: R&D Spend
PAGE 10 YEAR - R&D SPEND 11 • R&D spend is divided between research and development projects • Research – Core understanding of the technologies and science behind them • Development – Focus on implementing new technology and new products
Slide 12: Research Capabilities
PAGE RESEARCH CAPABILITIES 12 Thermal Properties Compositional Analysis Mechanical Properties Microscopy
Slide 13: Research Capabilities: Longer-Term, Real-Life Exposure
PAGE RESEARCH CAPABILITIES 13 Longer-Term, Real-Life Exposure
Slide 14: Platform Development Focus
PAGE PLATFORM DEVELOPMENT FOCUS 14 Platform A (Current) • Plank / Panel • Flat sheets • Higher throughput Platform B (Current) • Thicker products • Functional Platform C (New) • Aesthetics • Product Form • High-end products Platform D (New) • Shapes • Extreme applications • Functional Invest in new
Slide 15: Product Development Focus
PAGE PRODUCT DEVELOPMENT FOCUS 15 Form • Aesthetics • Texture • Shape • Weight • Color Function • Water management • Drainage • Durability • Energy efficiency Features • Concealed fastening • Nail line • Ease of install Balanced mix of step change products and product line extensions to drive JH cat
Slide 16: HardieZone System – Engineered for Climate
PAGE HARDIEZONE ® SYSTEM– ENGINEERED FOR CLIMATE ® 16 Delivered HardieZone ® E ngineered for Climate ® Products th Generation of FC products James Hardie Siding Products
Slide 17: Product Development
PAGE PRODUCT DEVELOPMENT 17 HardieTrim® Mouldings HardieReveal2.0™Panel System HardiePlank® Lap Siding with Insulation Artisan® V-Rustic Siding HardieTrim® 5/4” NT3® Roughsawn
Slide 18: Product Performance
PAGE PRODUCT PERFORMANCE 18 20 40 60 100 TIME HZ5 ® siding performs 5x better than generic FC in system testing Source: James Hardie Internal Research and Testing Generic Fiber Cement HZ5
Slide 19: JH vs. Competitors (OSB)
PAGE JH vs. COMPETITORS (OSB) 19 1/16 1/4 JH OSB JH OSB Real World Movement is 4X, Damp to Ambient Like hardboard, OSB siding is a wood based, manufactured product that can experience similar issues when exposed in external applications: • Fire • Splitting • Mold Growth • Termites • Significant Mois
Slide 20: Flexible and Low Cost Manufacturing
PAGE 20 FLEXIBLE AND LOW COST MANUFACTURING Safety People Quality Service Process Optimization Cost • Low cost manufacturing • Significant R&D investment in plant engineering, construction and design • Significantly lower capital $ per square foot produced than our competitors • Enable James Hardie
Slide 21: Well Developed Supply Chain
PAGE 21 WELL DEVELOPED SUPPLY CHAIN Integrated supply chain designed for on-time service at optimized landed costs Regional Sourcing Zones Customer demand is grouped into sourcing zones Lowest Cost Sourcing Manufacturing & freight costs determine “ideal” source plant Introducing manufacturing capaci
Slide 22: Organization Capability
PAGE ORGANIZATION CAPABILITY 22 Recruit Engage Develop Promote Evaluate • Driving an overall business capability that allows us to profitably participate in all segments • Ability to move a market • Very capable and above the industry norm • Executing at a high level with a single focus • Depth of l
Slide 23: Market Initiatives Driving Non-Product Advantage
MARKET INITIATIVES DRIVING NON-PRODUCT ADVANTAGE
Slide 24: Economic Value Analysis
PAGE Competitive Product Install Costs JH full wrap Install Costs ECONOMIC VALUE ANALYSIS 24 Design Marketing support Durability/ low maintenance Value Warranty Ease of Install
Slide 25: ide C—O
| ide C—O
Slide 26: Slide 26
Slide 27: Market Initiatives
PAGE MARKET INITIATIVES 27 Aimed at facilitating growth • SIDE Master Installation Program • 100% HARDIE in single family new construction • Hardie Ambassadors in repair and Remodel • AskHardie™ Support in smaller markets
Slide 28: SIDE Master Installation Program
PAGE SIDE MASTER INSTALLATION PROGRAM 28 Target SIDE Event Sub-Labor Follow Up Installer Follow Up Process: Output (JH Benefit): 1. Target Builder Conversions 2. New Builder Leads 3. Increased Compliance 1. Increased Compliance 2. New Builder Leads 3. Capacity Leads
Slide 29: 100% Hardie - Single Family New Construction
PAGE 100% HARDIE - SINGLE FAMILY NEW CONSTRUCTION 29 A program that: …inspires confidence …stands above the rest …delivers results
Slide 30: Hardie Ambassador Program – Single Family Repair and Remodel
PAGE HARDIE AMBASSADOR PROGRAM – SINGLE FAMILY REPAIR AND REMODEL 30 • Drive awareness and preference for James Hardie products in vinyl battleground neighborhoods • Reaching homeowners through multiple touch points • Enabling contractor growth in these key neighborhoods
Slide 31: AskHardie Support in Smaller Markets
PAGE ASKHARDIE™ SUPPORT IN SMALLER MARKETS 31 Additional resources for the trade in select Midwest markets providing expedited response times through dedicated single source experts askHardie Support
Slide 32: Questions
PAGE QUESTIONS 32
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