James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (September 2010)
22 slides from James Hardie Industries's investor presentation, Sep 16, 2010
Slide 1: US Business Overview
US Business Overview Nigel Rigby
Slide 2: Disclaimer
Disclaimer This Management's 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 United States Securities and Exchange Commission on Forms 20-F and 6-K, in the annual reports to sh
Slide 3: Overview Agenda
Overview Agenda US Business Macro Environment Strategic Growth Strategy and Initiatives Category Share Initiatives Summary 3
Slide 4: Macro Environment
Macro Environment Initial market demand in Q1 reversed in Q2 Structural shift in new construction to starter / 1st move up homes i.e. smaller homes Strong Hardie markets underperforming in 2010 e.g. Texas Key raw material costs continue at cycle highs Repair / remodel is down but still constitutes 7
Slide 5: Strategic Growth Years Strategy
5 5 Strategic Growth 12 Years Strategy: Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Offer products with superior value to that of our competitors Introduce differentiated products to deli
Slide 6: Non Metro Strategy
Non Metro Strategy Strategic Objective Grow fiber cement penetration in non metro markets to be at least equal to what it is in its reference metro while maintaining category share Game plan Build product awareness with home owners for Contractor Built, Owner's built and R&R segments through channel
Slide 7: R&R Segment Strategy, Objectives, Initiatives
R&R Segment Strategy, Objectives, Initiatives 7 Business Strategy - Switch the preference from vinyl to fiber cement by directly communicating the benefits and affordability of James Hardie to the consumer Strategic Objectives: Get into the home via Education, Contractor and Both PDG (Terminal Share
Slide 8: R&R Market Opportunities
R&R Market Opportunities Penetration Curve Mix Shift in High Penetration Markets Charlottes ®, Pa be 2 mmm | Large PDG Opportunity Detroit Sasi in Early $ Curve Markets
Slide 9: Color Job / House Packs
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2004 - 2010 Color focused at the North vinyl substitution model Focused channel access to scale dealers Focused Color / Product range due to inventory constraints Job / House Packs remove the supply chain barriers to ColorPlus adoption in Primed to C
Slide 10: Next Evolution of Color - Color Job / House Packs
10 Next Evolution of Color - Color Job / House Packs Category Share ("90") Speed the shift to ColorPlus Increase market Access to products Market Share ("35") Sell better against alternative products, such as vinyl, with an attractive, low maintenance, ColorPlus full exterior Lower system costs by t
Slide 11: HardieTrim NT3 and the James Hardie Innovation Path
11 HardieTrim(r)NT3(tm) HardieTrim(r)NT3 EXTRUDED FC TRIM, COLORPLUS(tm) TECHNOLOGY FINISHED SURFACE, EASED EDGES FLEX FORMULATIONS 12' LENGTHS, CONCEALED NAILS THE JAMES HARDIE INNOVATION PATH PRODUCT EXTENSION 11
Slide 12: Photo of bad shingle
Photo of bad shingle 12
Slide 13: In just a year of weathering...
In just a year of weathering... 13
Slide 14: Single Family - Complete Exterior
Single Family - Complete Exterior Launch of a new look Hardie Custom Colonial Plank Hardie complete exterior package targeted at differentiated regional and national builders Reposition of the Hardie brand in high share markets Complete Exterior product range positioned at all segments - Cemplank /
Slide 15: Single Family - Complete Exterior Model Homes
Single Family - Complete Exterior Model Homes are Hardie's retail store to Brand Position with the consumer Program designed around web based demand to model homes 16
Slide 16: HardieZone - HardieAdvantage
HardieZone - HardieAdvantage Drip edge Sloped top Rounded drip edge eliminates damage More durable than square edge Maintains drainage function 17
Slide 17: Category Share
Category Share Current State Increase in price conscious builders and contractors Gaps in Hardie - Multi Family, Production Builders and Key Channel Two price increases over the last year have increased the Hardie premium 18
Slide 18: Production Builders and Dealers
Production Builders and Dealers Top 18 Production Builders account for approximately 26% of new, single-family, residential construction in the United States Executed a Scale Builder and Dealer program in May 2009 Dealer channel better aligned, understanding and supportive of James Hardie Strategies
Slide 19: Retail
Retail Committed to Programs with both Home Depot and Lowe's across exteriors and interiors Hardiebacker is now 50%+ of retail cement backer board market Opportunity in R&R segment around our Color house pack program 20
Slide 20: Multi Family
Multi Family Early and Late stage sales approach Early stage specific to Color where value exits - Lifecycle value Late stage focused at project identification, pricing and supply chain efficiency Executing a model in PNW and Atlanta Launched Brand for MF direct to job site which enables a 5 day shi
Slide 21: Summary
Summary Focused on Category Share Strategic Growth - continuing to fund and execute market development initiatives Manufacturing - safety / cost / efficiency - creating flexibility managing through the demand swings and raw material cycles Continue to adjust with uncertain market shifts and demand 2
Slide 22: Questions
Questions 23
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