James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2022)
133 slides from James Hardie Industries's investor day presentation, Sep 12, 2022
Slide 1: JHX Investor Day 2022 – Day 1
For personal use only JHX Investor Day 2022 Page 1 New York, 12-13 September 2022 – Day 1
Slide 2: Cautionary Note on Forward-Looking Statements
James Hardie Investor Day 2022 CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS For personal use only This Management Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie I
Slide 3: Formalities
James Hardie Investor Day 2022 FORMALITIES Balcony level For personal use only Zero Harm Front of Stage Seating Venue Layout Welcome Bags Lifts WiFi Network: JamesHardie Password: Investor2022 Exit Front of Stage Charging Your Items Seating Meals / Experience Groups Lifts Agenda Exit Lower level Pag
Slide 4: Agenda – Day 1
James Hardie Investor Day 2022 AGENDA – DAY 1 ZIEGFELD BALLROOM Day 1 – Monday, September 12th For personal use only Breakfast 7:45-8:30 AM All Logistics Overview 8:30-8:45 AM James Brennan-Chong CEO Overview 8:45-9:15 AM Aaron Erter Zero Harm and ESG 9:15-9:30 AM Ryan Kilcullen / Jill Kolling Q&A 9
Slide 5: Agenda – Day 2
James Hardie Investor Day 2022 AGENDA – DAY 2 ZIEGFELD BALLROOM Day 2 – Tuesday, September 13th For personal use only Breakfast 7:00-8:00 AM All APAC 8:00-9:15 AM John Arneil & Travis Johnson Q&A 9:15-9:30 AM All Experience Session #1 9:30-10:00 AM Breakout Groups Break 10:00-10:15 AM All Tobias Ben
Slide 6: Investor Day 2022 – CEO Aaron Erter
For personal use only INVESTOR DAY 2022 – CEO AARON ERTER Page 6
Slide 7: Full Year Fiscal Year 2023 Guidance
James Hardie Investor Day 2022 FULL YEAR FISCAL YEAR 2023 GUIDANCE For personal use only Management reaffirms full year FY23 Adjusted Net Income1 guidance of: US$730 million and US$780 million a 22% increase at the mid point relative to FY22 North America Guidance – Full Year FY23 Net Sales Growth 1
Slide 8: Who Am I?
James Hardie Investor Day 2022 WHO AM I? For personal use only 8 Page 8
Slide 9: Who Am I?
James Hardie Investor Day 2022 WHO AM I? For personal use only Demonstrated passion and experience in building consumer-centric and brand led growth organizations Managed diverse Developed insight driven global businesses innovation organizations Driven sustained Integrated customer profitable growt
Slide 10: Why James Hardie?
James Hardie Investor Day 2022 WHY JAMES HARDIE? For personal use only ✓ Great Reputation Within the Industry ✓ Experienced & Talented Team ✓ First Class and Committed Board ✓ Strong Cash Position ✓ Tremendous Growth Opportunities ✓ My Experience is Aligned to Accelerate Value Page 10
Slide 11: Right Global Strategy to Deliver Growth
James Hardie Investor Day 2022 RIGHT GLOBAL STRATEGY TO DELIVER GROWTH For personal use only 1 Market to Homeowners to Create Demand 2 Penetrate and Drive Profitable Growth in Existing and New Segments 3 Commercialize Global Innovations by Expanding Into New Categories Continued Execution and Expans
Slide 12: My Focus
James Hardie Investor Day 2022 MY FOCUS For personal use only Being in the field Successfully Developing a diverse Driving with our customers executing on our world-class team Profitable and team members commitments rooted in respect and growth teamwork Page 12
Slide 13: What to Expect?
James Hardie Investor Day 2022 WHAT TO EXPECT? For personal use only Consumer Focused Customer & Trade Driven Page 13
Slide 14: For personal use only
For personal use only Page 14
Slide 15: Zero Harm and ESG
For personal use only ZERO HARM AND ESG
Slide 16: Zero Harm Update and ESG – Presenters
James Hardie Investor Day 2022 ZERO HARM UPDATE AND ESG – PRESENTERS For personal use only Ryan Kilcullen Jill Kolling EVP Global Operations VP ESG and Chief Sustainability Officer Page 16
Slide 17: Agenda – Zero Harm and ESG
James Hardie Investor Day 2022 AGENDA For personal use only Investor Day 2022 – Zero Harm and ESG Topic Presenter Zero Harm Update Ryan Kilcullen ESG Update Jill Kolling Page 17
Slide 18: Zero Harm Update
For personal use only ZERO HARM UPDATE Ryan Kilcullen, EVP Operations
Slide 19: Our conviction that every incident is preventable
For personal use only Our conviction that every incident is preventable Page 19
Slide 20: JH Zero Harm
James Hardie Investor Day 2022 JH ZERO HARM For personal use only Building better safety systems is at the heart of James Hardie’s Zero Harm program. Safety is embedded in our corporate culture 24/7 across our global operations. Page 20
Slide 21: Zero Harm in Action
James Hardie Investor Day 2022 ZERO HARM IN ACTION Leadership Commitment – APAC Safety Day Operator Engagement For personal use only Changing our behaviours is key for our transformation towards Zero Harm Page 21
Slide 22: Zero Harm in Action
James Hardie Investor Day 2022 ZERO HARM IN ACTION Global Replication of Best Practices Total Company Zero Harm For personal use only EU Incident Trend Sales Fleet Office Pre- Today Acquisition BEFORE AFTER Page 22
Slide 23: ESG Update
For personal use only ESG UPDATE Jill Kolling, VP ESG & Chief Sustainability Officer
Slide 24: History of ESG at James Hardie
James Hardie Investor Day 2022 HISTORY OF ESG AT JAMES HARDIE 2018 No Report For personal use only 2020 2021 2022 Page 24
Slide 25: Our Pillars
James Hardie Investor Day 2022 OUR PILLARS For personal use only James Hardie’s sustainability strategy integrates our global strategy for value creation and operational performance. It focuses on our four key pillars of Communities, Environment, Innovation and Zero Harm. Page 25
Slide 26: For personal use only
For personal use only James Hardie Investor Day 2022 Page 26
Slide 27: FY22 Highlights – Eliminating Coal
James Hardie Investor Day 2022 FY22 HIGHLIGHTS – ELIMINATING COAL For personal use only After 50 years, the coal boiler at our Carole Park facility in Queensland, Australia was shut down In March. In its place are two new natural gas boilers. Asia Pacific joins North America as a coal-free region as
Slide 28: FY22 Highlights – Recycling and Reusing Waste
James Hardie Investor Day 2022 FY22 HIGHLIGHTS – RECYCLING AND REUSING WASTE For personal use only In our waste takeback program in Europe, we salvage trim cuttings from our customers and bring them back to our fiber gypsum plants to recycle into new Fermacell® fiber gypsum boards. In Texas, we sign
Slide 29: FY22 Highlights – Inclusion and Diversity
James Hardie Investor Day 2022 FY22 HIGHLIGHTS – INCLUSION AND DIVERSITY For personal use only Our I&D program focuses on culture, employee engagement, employee capabilities, hiring practices, and growing and developing talent in the organization. We prioritize inclusion in the workplace so our empl
Slide 30: FY22 Highlights – Impacting Local Economies
James Hardie Investor Day 2022 FY22 HIGHLIGHTS – IMPACTING LOCAL ECONOMIES For personal use only James Hardie builds value by contributing to local economies through capital expenditure at our plants and by investing in our employees, in local ecosystems and across our supplier base. Page 30
Slide 31: Continuing Our ESG Journey
James Hardie Investor Day 2022 CONTINUING OUR ESG JOURNEY For personal use only • Building out a global ESG team • Continue to evolve our ESG reporting • Incorporate customer and consumer insights • Gain a better understanding of our upstream and downstream carbon footprint • Develop a more strategi
Slide 32: Q&A
For personal use only Q&A
Slide 33: Break
For personal use only 30 MINUTE BREAK
Slide 34: Investor Day 2022 – North America
For personal use only INVESTOR DAY 2022 – NORTH AMERICA Page 34
Slide 35: Presenters
James Hardie Investor Day 2022 PRESENTERS For personal use only Sean Gadd Chad Fredericksen John Madson Atousa Ghoreichi President VP North America VP North America SVP North America North America Professional Channel Sales Marketing, PR, and Communications Page 35
Slide 36: Agenda – North America
James Hardie Investor Day 2022 AGENDA Investor Day 2022 – North America For personal use only Topic Presenter North America Overview Sean Gadd Built for Growth Why We Win Regional Approach Q&A Lunch Northeast & Midwest Repair & Remodel Chad Fredericksen Customer John Madson Contractor Chad Frederick
Slide 37: North America: Overview
For personal use only NORTH AMERICA: OVERVIEW Sean Gadd, President North America Page 37
Slide 38: North America – Summary
James Hardie Investor Day 2022 NORTH AMERICA – SUMMARY For personal use only Proven track record as a growth company James Hardie fiber cement proven to deliver high value We want to win in all regions and all segments Accelerate sustainable profitable growth in Northeast and Midwest Repair & Remode
Slide 39: North America: Built for Growth
For personal use only NORTH AMERICA: BUILT FOR GROWTH Page 39
Slide 40: Volume and Net Sales Growth
James Hardie Investor Day 2022 VOLUME AND NET SALES GROWTH NA Total Volume (mmsf) 20 Year Performance 3,500 For personal use only 3,000 ↑ 3.1x vs 2002 volumes - mmsf 2,500 2,000 Volume 1,500 6% CAGR 1,000 500 ↑5.7x vs 2002 - Net Sales FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Slide 41: Driving Profitable Mix Through Full Wrap Solutions & ColorPlus Technology
James Hardie Investor Day 2022 DRIVING PROFITABLE MIX THROUGH FULL WRAP SOLUTIONS & COLORPLUS® TECHNOLOGY 20 Year Volume For personal use only ColorPlus® Technology and Trim Volume (mmsf) 1,000 Performance ColorPlus® ColorPlus® 21% CAGR Trim Trim 12% CAGR Volume - mmsf 500 10 Year Volume Performance
Slide 42: Penetrating Repair & Remodel Segment
James Hardie Investor Day 2022 PENETRATING REPAIR & REMODEL SEGMENT For personal use only Volume vs SF Housing Starts Indexed Volume vs SF Housing Starts 2,000 3,500 400 SF starts JH total volumes 1,800 350 Average SF starts JH total volumes 3,000 JH total volumes - '000 mmsf 1,600 300 1,400 2,500 S
Slide 43: Long Term Profitability
James Hardie Investor Day 2022 LONG TERM PROFITABILITY For personal use only Adjusted EBIT 800 20 Year Performance 700 600 ↑7.6x vs 2002 Adjusted EBIT 500 11% CAGR US$ million 400 300 200 10 Year Performance 100 ↑4.6x vs 2012 0 Adjusted EBIT 16% CAGR FY01 FY17 FY00 FY02 FY03 FY04 FY05 FY06 FY07 FY08
Slide 44: Built for Growth
James Hardie Investor Day 2022 BUILT FOR GROWTH For personal use only 10 Year 10 Year 10 Year Adjusted Volume CAGR Net Sales CAGR EBIT CAGR 9% 12% 16% Page 44
Slide 45: North America: Why We Win
For personal use only NORTH AMERICA: WHY WE WIN Page 45
Slide 46: Value Proposition
James Hardie Investor Day 2022 James Hardie Value Proposition For personal use only Exterior Design ✓ Curb Appeal Superior Durability ✓ Resistance to Fire & Weather Low Maintenance ✓ Full Wrap Solution Trusted Brand ✓ On Over 10 Million Homes Unrivaled Business Support Page 46
Slide 47: Why We Win Against the Competition
James Hardie Investor Day 2022 WHY WE WIN AGAINST THE COMPETITION For personal use only Vinyl Wood Other FC ▪ Exterior Design ▪ Superior Durability ▪ Trusted Brand ▪ Superior Durability ▪ Low Maintenance ▪ Engineered for Climate™ ▪ Low Maintenance with a ▪ Design ▪ Technology refresh solution − Full
Slide 48: Full Wrap Solution
James Hardie Investor Day 2022 FULL WRAP SOLUTION For personal use only We Manufacture High Performance Fiber Cement Building Solutions Page 48
Slide 49: Growth Through Innovation & Capacity Expansion
James Hardie Investor Day 2022 GROWTH THROUGH INNOVATION & CAPACITY EXPANSION For personal use only Tacoma – 1998 Tacoma 2 – 2018 PNW Mountain Midwest & Northeast Peru – 2000 Peru Trim – 2004 Reno – 2004 Pulaski – 2005 Fontana – 1989 Prattville - Carolinas Cleburne – 2021 Southwest 1997 Mid South So
Slide 50: North America: Regional Approach
For personal use only NORTH AMERICA: REGIONAL APPROACH Page 50
Slide 51: Regional Map
James Hardie Investor Day 2022 REGIONAL MAP For personal use only PNW Mountain Midwest & Northeast Carolinas Southwest South Mid South Central South East Page 51
Slide 52: Volume Overview
James Hardie Investor Day 2022 VOLUME OVERVIEW FY22 Exteriors FY22 Exteriors vs Interiors By Product By End Market1 For personal use only High Value High Value Hardie® Exteriors Innovation 1% w/ColorPlus® Technology Cemplank® Interiors 9% 12% 22% New Construction 35% Repair & High Value Hardie® Remo
Slide 53: North America 2021 Exterior Cladding Market
James Hardie Investor Day 2022 NORTH AMERICA 2021 EXTERIOR CLADDING MARKET For personal use only Total Market Repair & Remodel New Construction Other, 2% Other Wood 11% 31% Vinyl Masonry R&R Wood 60% Vinyl 15% 26% New 31% Construction 34% Fiber 40% Cement Stucco 8% 25% 17% 9% 6% Masonry Fiber Cement
Slide 54: Pacific Northwest Overview
James Hardie Investor Day 2022 PACIFIC NORTHWEST OVERVIEW For personal use only Region: Pacific Northwest Standard: Fiber cement, 56% of New Construction Market Background: ▪ 4 side Architecture ▪ Moving to Modern Our Approach: Defend with Primed Full Wrap, penetrate modern with Aspyre® and Hardie®
Slide 55: Southwest Overview
James Hardie Investor Day 2022 SOUTHWEST OVERVIEW For personal use only Region: Southwest Standard: Stucco, 57% of New Construction Market Background: ▪ Mediterranean look Our Approach: Win with Primed full wrap everywhere, with separate focus on Southern California Coast and Northern California wit
Slide 56: Mountain Overview
James Hardie Investor Day 2022 MOUNTAIN OVERVIEW For personal use only Region: Mountain Standard: Wood, 37% of New Construction Market Background: ▪ Denver is largest market ▪ 4 side Architecture ▪ Consolidated builder market Our Approach: Win with Primed Full Wrap Mountain Market % of Homes >40 as
Slide 57: Carolinas Overview
James Hardie Investor Day 2022 CAROLINAS OVERVIEW For personal use only Region: Carolinas Standard: Vinyl, Fiber Cement (both ~30% of New Construction); Vinyl, 36% of R&R Market Background: ▪ Largest ColorPlus® market ▪ Consolidated builder market 4 Sided Architecture Our Approach: ColorPlus® Techno
Slide 58: Southeast Overview
James Hardie Investor Day 2022 SOUTHEAST OVERVIEW For personal use only Region: Southeast Standard: Stucco, 36% of New Construction; Fiber Cement Market Background: ▪ Atlanta very consolidated 4 Side Architecture ▪ Florida: Stucco liability Our Approach: Defend with Primed in Atlanta, and grow in Fl
Slide 59: Mid South Overview
James Hardie Investor Day 2022 MID SOUTH OVERVIEW For personal use only Region: Mid South Standard: Brick, 33% of New Construction Market Background: ▪ Fairly fragmented ▪ High paint costs on the coast Our Approach: Exteriors with ColorPlus® Technology on the coast and Primed Full Wrap everywhere el
Slide 60: South Central Overview
James Hardie Investor Day 2022 SOUTH CENTRAL OVERVIEW For personal use only Region: South Central Standard: Brick/Masonry, 37% of New Construction Market Background: ▪ Historical ordinance for 80% masonry until 2018 ▪ Region moving to 4 Sided Architecture Our Approach: Win with Primed Full Wrap, pen
Slide 61: Northeast and Midwest Overview
James Hardie Investor Day 2022 NORTHEAST AND MIDWEST OVERVIEW For personal use only Region: Northeast & Midwest Standard: Vinyl, 39% of R&R (Fiber Cement 7% of R&R) Market Background: ▪ Old Housing Stock primarily with Vinyl and Wood siding ▪ Northeast is 4 side Architecture ▪ Predominantly wood loo
Slide 62: Q&A
For personal use only Page 62 Q&A
Slide 63: Lunch
For personal use only 90 MINUTE LUNCH Page 63
Slide 64: North America: Northeast and Midwest R&R
For personal use only NORTH AMERICA: NORTHEAST AND MIDWEST R&R Chad Fredericksen, VP North America Pro Channel Page 64
Slide 65: Northeast and Midwest Repair & Remodel – Summary
James Hardie Investor Day 2022 NORTHEAST AND MIDWEST REPAIR & REMODEL – SUMMARY For personal use only The Repair & Remodel market in the Northeast and Midwest is a Sustainable Profitable Growth Opportunity James Hardie has industry leading capabilities across the entire Repair & Remodel value chain
Slide 66: What It Takes to Turn a Dream into a Reality
James Hardie Investor Day 2022 WHAT IT TAKES TO TURN A DREAM INTO A REALITY For personal use only CUSTOMER CONTRACTOR HOMEOWNER Supply Expertise Home Service Material Inspiration COMPLETED RE-SIDE Education Labor Investment Page 66
Slide 67: Industry Leading Capabilities Across the Entire Value Chain
James Hardie Investor Day 2022 INDUSTRY LEADING CAPABILITIES ACROSS THE ENTIRE VALUE CHAIN For personal use only CUSTOMER CONTRACTOR HOMEOWNER Past 15 years Past 3 years Today Page 67
Slide 68: Connecting the Value Chain to Drive Growth
James Hardie Investor Day 2022 CONNECTING THE VALUE CHAIN TO DRIVE GROWTH For personal use only CUSTOMER CONTRACTOR HOMEOWNER Ensuring our Customers capture a disproportionate amount of the demand created and become the force multiplier Page 68
Slide 69: North America: Customer
For personal use only NORTH AMERICA: CUSTOMER John Madson, VP North America Sales Page 69
Slide 70: Customer – Key Takeaways
James Hardie Investor Day 2022 CUSTOMER – KEY TAKEAWAYS For personal use only We are better aligned with our customers today than ever before Our customers are motivated to support us as they make more money per transaction selling James Hardie than competitive products The customer interacts with e
Slide 71: How James Hardie Delivers What the Customer Values
James Hardie Investor Day 2022 HOW JAMES HARDIE DELIVERS WHAT THE CUSTOMER VALUES For personal use only CUSTOMER THE CUSTOMER CARES ABOUT Organic growth Higher value products Defined as any building materials supplier. Their customers include; R&R contractors, Efficient working capital utilization s
Slide 72: How James Hardie Delivers What the Customer Values
James Hardie Investor Day 2022 HOW JAMES HARDIE DELIVERS WHAT THE CUSTOMER VALUES only ORGANIC GROWTH HIGHER VALUE PRODUCTS EFFICIENT WORKING CAPITAL useNeed personalCustomer JH Value Creation Broad product Superior demand portfolio LEAN inventory creation management For Innovation Page 72
Slide 73: How James Hardie Delivers What the Customer Values
James Hardie Investor Day 2022 HOW JAMES HARDIE DELIVERS WHAT THE CUSTOMER VALUES For personal use only INTEGRATED APPROACH SHARED GOALS ENABLEMENT Consistent CUSTOMER Communication Executive Executive Leadership Leadership Senior Leaders Senior Leaders Associate Trainings Functional Functional Grou
Slide 74: Customer – Summary
James Hardie Investor Day 2022 CUSTOMER – SUMMARY For personal use only We are better aligned with our customers today than ever before Our customers are motivated to support us as they make more money per transaction selling James Hardie than competitive products The customer has a broad reach to c
Slide 75: North America: Contractor
For personal use only NORTH AMERICA: CONTRACTOR Chad Fredericksen, VP North America Pro Channel Page 75
Slide 76: The R&R Contractor – Summary
James Hardie Investor Day 2022 THE R&R CONTRACTOR – SUMMARY For personal use only Expand the number of contractors that sell James Hardie through our customer partnerships Empower contractors to make more revenue and profit selling James Hardie over competitors Retain the contractors by continually
Slide 77: James Hardie Capability – Understanding the Contractor
James Hardie Investor Day 2022 JAMES HARDIE CAPABILITY – UNDERSTANDING THE CONTRACTOR For personal use only R&R CONTRACTOR THERE ARE THREE WAYS A CONTRACTOR CAN MAKE MORE MONEY Sell more projects Increase the price of projects Defined as any residential contractor who sells and produces an exterior
Slide 78: James Hardie Value Proposition to Contractors
James Hardie Investor Day 2022 JAMES HARDIE VALUE PROPOSITION TO CONTRACTORS use only SELL MORE PROJECTS INCREASE THE PRICE INSTALL MORE EFFICIENTLY Contractor Need personal Proprietary install High quality Higher value product Creation efficiency training consumer leads portfolio ForJH Value Market
Slide 79: Contractor Profitability | Most Valuable Asset Is Time
James Hardie Investor Day 2022 CONTRACTOR PROFITABILITY | MOST VALUABLE ASSET IS TIME For personal use only R&R Contractor’s Siding Installation Crew 1 2 40 50 3 6,000 Hours Per Working Installers Man-hours Per Year Week Weeks a Per Crew 3 Year It is better for a contractor to deploy their finite la
Slide 80: For personal use only
For personal use only Page 80
Slide 81: Aligning Customers and Contractors | From – To
James Hardie Investor Day 2022 ALIGNING CUSTOMERS AND CONTRACTORS | FROM – TO For personal use only CUSTOMER CONTRACTOR FROM: Page 81
Slide 82: Aligning Customers and Contractors | From – To
James Hardie Investor Day 2022 ALIGNING CUSTOMERS AND CONTRACTORS | FROM – TO HOMEOWNER For personal use only CONTRACTOR CUSTOMER TO: Page 82
Slide 83: Expanding Contractor Alliance Program Membership
James Hardie Investor Day 2022 EXPANDING CONTRACTOR ALLIANCE PROGRAM MEMBERSHIP It’s Possible™ For personal use only Campaign | Events Push Pull 2016 Today Growth of Contractor Alliance Program membership in the Northeastern United States over time. Page 83 *Representative of total Contractor Allian
Slide 84: The R&R Contractor – Summary
James Hardie Investor Day 2022 THE R&R CONTRACTOR – SUMMARY For personal use only Expand the number of contractors that sell James Hardie through our customer partnerships Empower contractors to make more revenue and profit selling James Hardie over competitors Retain the contractors by continually
Slide 85: Q&A
For personal use only Page 85 Q&A
Slide 86: Break
For personal use only 30 MINUTE BREAK Page 86
Slide 87: North America: Homeowner
For personal use only NORTH AMERICA: HOMEOWNER Sean Gadd, President North America Page 87
Slide 88: How James Hardie Delivers What the Homeowner Values
James Hardie Investor Day 2022 HOW JAMES HARDIE DELIVERS WHAT THE HOMEOWNER VALUES For personal use only HOMEOWNER THE HOMEOWNER CARES ABOUT Exterior appeal and design Superior durability Low maintenance Page 88
Slide 89: The Homeowner – Summary
James Hardie Investor Day 2022 THE HOMEOWNER – SUMMARY For personal use only Our 360 degree Marketing Strategy to the Homeowner is working We have researched and drawn insights into the pain points of the Homeowner’s path to purchase We have specific programs and tools to alleviate the homeowner pai
Slide 90: 360 Degree Marketing Program Delivered Significant Results in FY22
James Hardie Investor Day 2022 360 DEGREE MARKETING PROGRAM DELIVERED SIGNIFICANT RESULTS IN FY22 Equals Increased For personal use only 1.4 M Demand in FY22 New Web Sessions +505% YoY 33K 6K +11% 2 Marketing Sales Volume Leads Leads +209% YoY +102% YoY ▪ Targeted 3 Key Metros in the ▪ Demand in 3 T
Slide 91: Improving the Homeowner's Path to Purchase
James Hardie Investor Day 2022 IMPROVING THE HOMEOWNER’S PATH TO PURCHASE Value Chain For personal use only CUSTOMER CONTRACTOR HOMEOWNER Typical Path to Purchase Idea Decision Start Complete Page 91
Slide 92: We Are Enhancing How We Connect to the Homeowner
James Hardie Investor Day 2022 WE ARE ENHANCING HOW WE CONNECT TO THE HOMEOWNER For personal use only Improving & Building Trust Via Developing Augmenting Expanding Magnolia Visualization Tool Retail Presence Marketing Program Collaboration Page 92
Slide 93: North America: Homeowner – It's Possible
For personal use only NORTH AMERICA: HOMEOWNER – IT’S POSSIBLE™ Atousa Ghoreichi, SVP North America Marketing Page 93
Slide 94: The Homeowner: It's Possible – Summary
James Hardie Investor Day 2022 THE HOMEOWNER: IT’S POSSIBLE™ – SUMMARY For personal use only Building a consumer brand is a journey and results of the year one launch are promising We have taken learnings from this first year to inform and enhance the program moving forward Given the positive result
Slide 95: This Is What Success Looks Like
James Hardie Investor Day 2022 THIS IS WHAT SUCCESS LOOKS LIKE For personal use only Sessions New Users Leads ↑197% ↑202% ↑132% May - June 2021 May - June 2022 May - June 2021 May - June 2022 May - June 2021 May - June 2022 Page 95 Source: JH Estimates
Slide 96: For personal use only
For personal use only Page 96
Slide 97: It's Possible 1.0 Evolves to 2.0
James Hardie Investor Day 2022 IT’S POSSIBLE™ 1.0 EVOLVES TO 2.0 For personal use only May 2021 May 2022 June 2022 July 2022 August 2022 Added New It’s Possible™ 1.0 Added New Data Expanded Magnolia Markets Launch Launched and Creative Audience • Formats • Washington DC • Biggest product Boston • Ch
Slide 98: Strategic Media Pillars in FY23
James Hardie Investor Day 2022 STRATEGIC MEDIA PILLARS IN FY23 For personal use only BUILD UPON LEVERAGE AUDIENCE CHRISTINE(S) ARE EARLIER MEDIA & DATA SEGMENTATION & READY TO BUY SUCCESS INNOVATION PERSONALIZATION Page 98
Slide 99: Building Upon Our Winning Formula
James Hardie Investor Day 2022 BUILDING UPON OUR WINNING FORMULA For personal use only Homeowner at 360 Marketing Communications Drive to Website Capture the Lead Center of Attention Expanded Audience Optimize Ad Campaigns Initiate Path To Purchase Lead Capture & Nurture Page 99
Slide 100: Growing Our Audience
James Hardie Investor Day 2022 GROWING OUR AUDIENCE For personal use only THE POWER COUPLE THE PROJECT HOME THE EMPTY NESTER CHRISTINE The Dreamer, the Doer BUYER The Retired, Downsizer Taking on the next project Page 100
Slide 101: Refreshed Creative to Drive Further Engagement
James Hardie Investor Day 2022 REFRESHED CREATIVE TO DRIVE FURTHER ENGAGEMENT For personal use only Page 101
Slide 102: Inspiring with Design, Reassuring with Durability
James Hardie Investor Day 2022 INSPIRING WITH DESIGN, REASSURING WITH DURABILITY For personal use only Page 102
Slide 103: Inspiring with Design, Reassuring with Durability
James Hardie Investor Day 2022 INSPIRING WITH DESIGN, REASSURING WITH DURABILITY For personal use only Page 103
Slide 104: Maximizing Video Across TV, Influencers & Organic Channels
James Hardie Investor Day 2022 MAXIMIZING VIDEO ACROSS TV, INFLUENCERS & ORGANIC CHANNELS For personal use only Influencer Stories Exterior Design Week Lead Gen TV Spot Page 104
Slide 105: Expansion of Marketing Program Covering Majority of NE/MW Market
James Hardie Investor Day 2022 EXPANSION OF MARKETING PROGRAM COVERING MAJORITY OF NE/MW MARKET For personal use only Expanding 360 Marketing Program Expanding to 3 New Metro Areas Minneapolis Saint Paul Boston Covers the 6 Largest Tri-State Chicagoland Metro Areas Philadelphia Metro In Northeast an
Slide 106: Q1 Performance Summary
James Hardie Investor Day 2022 Q1 PERFORMANCE SUMMARY For personal use only Year over year, overall lead volume was up around 33% in Q1 for Epicenter FY23. Paid Search (search) has grown 4x YoY and made up 78% of total Q1 leads. Display (ad banners) exceeded Q1 forecasted leads at 105% Page 106
Slide 107: North America: Homeowner – Magnolia
For personal use only NORTH AMERICA: HOMEOWNER – MAGNOLIA Atousa Ghoreichi, SVP North America Marketing Page 107
Slide 108: The Homeowner: Magnolia – Summary
James Hardie Investor Day 2022 THE HOMEOWNER: MAGNOLIA – SUMMARY For personal use only Chip and Joanna Gaines, and the significant reach of Magnolia will help drive awareness of James Hardie and allow us to sell more full-wrap ColorPlus® Technology finished products Joanna Gaines helps build credibi
Slide 109: For personal use only
For personal use only James Hardie Investor Day 2022 Page 109
Slide 110: For personal use only
For personal use only James Hardie Investor Day 2022 Page110 Contents are confidential and subject to disclosure and insider trading considerations 110
Slide 111: For personal use only
For personal use only Page 111
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For personal use only James Hardie Investor Day 2022 Page 112
Slide 113: For personal use only
For personal use only James Hardie Investor Day 2022 ~18+ Total Months ~11+ ~4+ ~3+ Page 113
Slide 114: Why Collaborate?
For personal use only James Hardie Investor Day 2022 Why Collaborate? • Fixer Upper: #1 Show on HGTV • Led to their own TV Network, Magnolia, launched in January • National partnership with Target • 30,000 weekly visitors to The Silos (Magnolia Land in Waco, TX) • More than 35 million followers acro
Slide 115: For personal use only
For personal use only Page 115
Slide 116: For personal use only
For personal use only James Hardie Investor Day 2022 Page 116
Slide 117: Magnolia Media Channel Overview
James Hardie Investor Day 2022 MAGNOLIA 360 MEDIA CHANNEL OVERVIEW For personal use only Social Partners Print Display/Video Search Page 117
Slide 118: Landing Page: jameshardie.com/magnolia
James Hardie Investor Day 2022 LANDING PAGE: JAMESHARDIE.COM/MAGNOLIA Desktop Mobile For personal use only Page 118
Slide 119: Magnolia Buzz: Examples
James Hardie Investor Day 2022 MAGNOLIA BUZZ: EXAMPLES For personal use only Page 119
Slide 120: Magnolia Buzz: People Magazine
James Hardie Investor Day 2022 MAGNOLIA BUZZ: PEOPLE MAGAZINE For personal use only “In an interview with PEOPLE, Joanna explains the reason why she loves partnering with James Hardie. ‘We drive by the homes we did 20 years ago down by Baylor University, and those were all Hardie-sided homes. This i
Slide 121: Magnolia Buzz
James Hardie Investor Day 2022 MAGNOLIA BUZZ 42 Media 1.5 B+ Potential For personal use only Placements Audience Page 121
Slide 122: North America: Homeowner – Visualization
For personal use only NORTH AMERICA: HOMEOWNER – VISUALIZATION Chad Fredericksen, VP North America Pro Channel Page 122
Slide 123: The Homeowner: Visualization – Summary
James Hardie Investor Day 2022 THE HOMEOWNER: VISUALIZATION – SUMMARY For personal use only Visualization is an invaluable tool to help inspire homeowners to reach their vision and better communicate that vision to contractors The visualization tool is a simple 3 step process that allows homeowners
Slide 124: The Importance of Visualization
James Hardie Investor Day 2022 THE IMPORTANCE OF VISUALIZATION For personal use only Most consumers will re-side their home once to twice in a lifetime. Visualization is an invaluable tool that can help inspire them to reach their vision and better communicate that vision to a contractor who will br
Slide 125: The Process
James Hardie Investor Day 2022 THE PROCESS For personal use only Consumer Experiments with Can connect to an takes photos different product aligned James Hardie of their home. profiles and colors contractor. on their home. Page 125
Slide 126: Replicate the Experience at Scale Through Technology
James Hardie Investor Day 2022 REPLICATE THE EXPERIENCE AT SCALE THROUGH TECHNOLOGY For personal use only Currently collaborating with an industry leading visualization provider. Actively testing the effect visualization can have on inspiring the consumer and empowering them to communicate their vis
Slide 127: The Homeowner: Visualization – Summary
James Hardie Investor Day 2022 THE HOMEOWNER: VISUALIZATION – SUMMARY For personal use only Visualization is an invaluable tool to help inspire homeowners to reach their vision and better communicate that vision to contractors The visualization tool is a simple 3 step process that allows homeowners
Slide 128: Connecting the Value Chain to Drive Profitable Growth
James Hardie Investor Day 2022 CONNECTING THE VALUE CHAIN TO DRIVE PROFITABLE GROWTH For personal use only CUSTOMER CONTRACTOR HOMEOWNER James Hardie – Maximizing value & profit across the entire Repair & Remodel value chain Page 128
Slide 129: North America: Closing
For personal use only NORTH AMERICA: CLOSING Sean Gadd, President North America Page 129
Slide 130: North America – Summary
James Hardie Investor Day 2022 NORTH AMERICA – SUMMARY For personal use only 10 Year 10 Year 10 Year Proven track record as a growth company Volume CAGR Net Sales CAGR Adj. EBIT CAGR 9% 12% 16% James Hardie fiber cement proven to deliver high value PNW Mountain Midwest & Northeast CUSTOMER CONTRACTO
Slide 131: Q&A
For personal use only Page 131 Q&A
Slide 132: End of Day
For personal use only Page 132 END OF DAY 1
Slide 133: JHX Investor Day 2022 – Day 1
For personal use only JHX Investor Day 2022 Page 133 New York, 12-13 September 2022 – Day 1
James Hardie Industries — Investor Day (September 2022) on 6ix