James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (July 2013)
36 slides from James Hardie Industries's investor presentation, Jul 22, 2013
Slide 1: Investor Presentation July/August 2013
For personal use only INVESTOR PRESENTATION JULY/AUGUST 2013 1
Slide 2: Disclaimer
For personal use only Investor Presentation Disclaimer This investor 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 SEC, on Forms 20-F and 6-K, in its annual reports to shareh
Slide 3: Agenda
For personal use only Investor Presentation Agenda • Business Overview • USA & Europe Fibre Cement • Asia Pacific Fibre Cement • Group Outlook • Summary • Appendix In this Investor Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financ
Slide 4: JHX: A Growth Focused Company
For personal use only Investor Presentation JHX: A GROWTH FOCUSED COMPANY Annual net sales US$1.3b Total assets US$1.2b Net cash US$154m Operations in North America, Asia Pacific and Europe 2,700 employees Market cap US$4.3b S&P/ASX 100 company NYSE ADR listing Note: Market capitaliz
Slide 5: Group Overview
For personal use only Investor Presentation 1 GROUP OVERVIEW 2 2 1 Comparisons are of the 4th quarter and full fiscal year as at 31 March 2013 versus the 4th quarter and full year result of the prior fiscal year. 2 Includes $485.2m tax benefit arising on conclusion of RCI’s disputed amended assessme
Slide 6: JHX: A World Leader in Fibre Cement
For personal use only Investor Presentation JHX: A WORLD LEADER IN FIBRE CEMENT USA Fibre Cement Products Siding Soffit Fascia Trim Backerboard Asia Pacific Fibre Cement Products Residential siding Commercial exteriors Flooring Ceilings and internal walls 6
Slide 7: Global Business Portfolio
For personal use only Investor Presentation GLOBAL BUSINESS PORTFOLIO 100% 90% 80% 70% 60% 50% 79% 72% 68% 40% 30% 20% 21% 28% 32% 10% 0% Volume NetSales Volume Sales EBIT*EBIT USA and Europe Fibre Cement Asia-Pacific Fibre Cement All numbers are for the financial year ended 31 March 2013 * EBIT – E
Slide 8: Fibre Cement – Superior Product Performance
For personal use only Investor Presentation FIBRE CEMENT – SUPERIOR PRODUCT PERFORMANCE Fibre cement is more durable than wood and engineered wood, looks and performs better than vinyl, and is more cost effective and quicker to build with than brick Fibre Cement Vinyl Engineered Wood Fire resistan
Slide 9: Product Leadership Example – HardieZone System
For personal use only Investor Presentation PRODUCT LEADERSHIP EXAMPLE – HARDIEZONE™ SYSTEM • 7th Generation versus 2nd Generation generic fibre cement • The HardieZone™ System represents a logical extension of Hardie technology 9
Slide 10: The USA Business – Largest Fibre Cement Producer in North America
For personal use only Investor Presentation THE USA BUSINESS – LARGEST FIBRE CEMENT PRODUCER IN NORTH AMERICA 10
Slide 11: USA Fibre Cement
For personal use only Investor Presentation USA FIBRE CEMENT Market and category share tracked as planned in FY13 Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau 11
Slide 12: USA & Europe Fibre Cement: Quarterly EBIT and EBIT Margin
For personal use only Investor Presentation USA & EUROPE FIBRE CEMENT 1 Quarterly EBIT and EBIT Margin 1 Excludes asset impairment charges of US$38.6 million in 4th quarter FY08, US$14.3 million in 4th quarter FY12, US$5.8 million in 3rd quarter FY13 and US$11.1 million in 4th quarter FY13 12
Slide 13: USA & Europe Fibre Cement: Average Net Sales Price
For personal use only Investor Presentation USA & EUROPE FIBRE CEMENT Average Net Sales Price (US dollars) US$639 US$ per MSF 13
Slide 14: Total US Housing Starts
For personal use only Investor Presentation TOTAL US HOUSING STARTS 14
Slide 15: Asia Pacific Fibre Cement
For personal use only Investor Presentation ASIA PACIFIC FIBRE CEMENT Five manufacturing plants in Asia Pacific 1 Net sales US$370m 1 EBIT US$75m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities. 1 Net Sales and EBIT for the fin
Slide 16: Asia Pacific Fibre Cement – Examples
For personal use only Investor Presentation ASIA PACIFIC FIBRE CEMENT - EXAMPLES Ceilings and partitions Exterior cladding Philippines Australia Australia Interior walls New Zealand General purpose flooring 16
Slide 17: Future Shareholder Returns
For personal use only Investor Presentation FUTURE SHAREHOLDER RETURNS • The company announced in November 2012 a dividend payout ratio of between 30% and 50% of net operating profit (excluding asbestos adjustments) from FY14 onwards • The company also announced on 23 May 2013: • A new share buyback
Slide 18: Group Outlook
For personal use only Investor Presentation GROUP OUTLOOK United States The US operating environment continues to reflect an increasing number of housing starts and improved house values NAHB expects growth of US repair and remodel market to continue into CY13, albeit at a slower rate than the n
Slide 19: Summary
For personal use only Investor Presentation SUMMARY We have a strong, well-established, growth-focused, strong cash-generating and high return business We have a sustainable competitive advantage Our model for strong growth is based on: Large market opportunity Superior value proposition
Slide 20: Appendix
For personal use only APPENDIX 20
Slide 21: Global Strategy
For personal use only Investor Presentation GLOBAL STRATEGY Industry leadership and profitable growth Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Australia Introduce differentiated
Slide 22: Key Ratios
For personal use only Investor Presentation KEY RATIOS * * Certain reclassifications have been reflected in the prior periods shown above to conform with current period presentation 1 Excludes asbestos adjustments, AICF SG&A expenses, AICF interest income, tax benefit related to asbestos adjustments
Slide 23: USA & Europe Year Results Overview
For personal use only Investor Presentation USA & EUROPE 5 YEAR RESULTS OVERVIEW FY09 FY10 FY11 FY12 FY13 Net Sales 929 828 814 862 951 US$m Sales Volume 1,527 1,304 1,248 1,332 1,489 mmsf Average Price 609 635 652 647 639 US$ per msf 1 EBIT US$m 199 209 160 163 163 1 EBIT Margin % 21 25 20 19 17 1
Slide 24: Asia Pacific Year Results Overview
For personal use only Investor Presentation ASIA PACIFIC 5 YEAR RESULTS OVERVIEW FY09 FY10 FY11 FY12 FY13 Net Sales 273 297 353 376 370 US$m Sales Volume 391 390 408 392 394 mmsf Average Price 879 894 916 916 911 US$ per msf EBIT US$m 1 47 59 79 86 75 EBIT Margin % 1 17 20 23 23 20 1 Excludes New Ze
Slide 25: Financial Summary
For personal use only Investor Presentation FINANCIAL SUMMARY US$ Millions Q4 '13 Q4 '12 % Change FY2013 FY2012 % Change Net Sales USA and Europe Fibre Cement $ 236.8 $ 220.7 7 $ 951.4 $ 862.0 10 Asia Pacific Fibre Cement 90.0 88.6 2 369.9 375.5 (2) Total Net Sales $ 326.8 $ 309.3 6 $ 1,321.3 $ 1,23
Slide 26: Endnotes
For personal use only Investor Presentation ENDNOTES This investor presentation forms part of a package of information about the company’s results. It should be read in conjunction with the company’s most recent results material for Q4 and full year 2013, including Management’s Analysis of Results,
Slide 27: Endnotes (Continued)
For personal use only Investor Presentation ENDNOTES (CONTINUED) Financial Measures – US GAAP equivalents This document contains financial statement line item descriptions that are considered to be non-US GAAP, but are consistent with those used by Australian companies. Because the company prepares
Slide 28: Endnotes (Continued)
For personal use only Investor Presentation ENDNOTES (CONTINUED) EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales. Sales Volumes mmsf – million square feet, where a square foot is defined as a standard square foot of 5/16” thickness msf – thousand square feet, where a square
Slide 29: Non-US GAAP Financial Measures
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES EBIT and EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses – EBIT and EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liabilit
Slide 30: Non-US GAAP Financial Measures (Continued)
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments – Net operating profit excluding asbestos, asset impairments, ASIC expenses, Ne
Slide 31: Non-US GAAP Financial Measures (Continued)
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) Diluted earnings per share excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments – Diluted earnings per share excluding asbestos, asset impairments, ASIC
Slide 32: Non-US GAAP Financial Measures (Continued)
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) Effective tax rate excluding asbestos, asset impairments, New Zealand product liability expenses and tax adjustments – Effective tax rate on earnings excluding asbestos, asset impairments, New Zealand product liab
Slide 33: Non-US GAAP Financial Measures (Continued)
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) Adjusted 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
Slide 34: Non-US GAAP Financial Measures (Continued)
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs – General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recover
Slide 35: Non-US GAAP Financial Measures (Continued)
For personal use only Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) Selling, general and administrative expenses excluding New Zealand product liability expenses – Selling, general and administrative expenses excluding New Zealand product liability expenses is not a measure of fin
Slide 36: For personal use only
For personal use only INVESTOR PRESENTATION JULY/AUGUST 2013 36
James Hardie Industries — Investor Presentation (July 2013) on 6ix