James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Corporate Update (September 2015)
33 slides from James Hardie Industries's corporate update, Sep 10, 2015
Slide 1: Southern Markets Update September 2015
Southern Markets Update September 2015 Exhibit 99.7
Slide 2: Disclaimer: Forward-Looking Statements
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: Agenda
PAGE AGENDA 4 • South Division Review • Growth / PDG Initiatives • Marketing & Customer Experience • Interiors
Slide 5: South Division at a Glance
PAGE SOUTH DIVISION AT A GLANCE 5 Quick Facts Manufacturing Employees: ~640 Sales Employees: ~100 FY15 Volume: ~970 mmsf FY15 Revenue: $754M ~60% of North American Volume ~80% Exteriors vs Interiors ~85% Single Family vs Multi Family
Slide 6: South Manufacturing & Reload Network
PAGE SOUTH MANUFACTURING & RELOAD NETWORK 6 HZ10 Manufacturing Facility ColorPlus ® Products Facility VMI Distribution Center Big Box Distribution Center
Slide 7: South Division Manufacturing
PAGE SOUTH DIVISION MANUFACTURING 7 KEYS TO OPERATIONAL STRATEGY • Safety • Customer service delivery • Capacity ahead of demand • Network redundancy • Labor efficiency and operational excellence PLANT KEY CAPABILITIES Fontana, CA Sheet Machines: 4’ wide, 5’ wide Low Density Production Primary produ
Slide 8: Growth Against Wood - Trim
PAGE GROWTH AGAINST WOOD - TRIM 8 TRIM ATTACHMENT TO SIDING CONTINUES TO BE A CORE FOCUS AND GROWTH DRIVER FOR THE SOUTH DIVISION
Slide 9: Growth Against Wood – New Trim Products
PAGE GROWTH AGAINST WOOD – NEW TRIM PRODUCTS 9 We have expanded our new trim technologies across numerous markets to increase the size of the addressable market for trim. Mouldings 1x2 Foam-Back Trim
Slide 10: Growth Against Wood - Carolinas Trim Transition
PAGE GROWTH AGAINST WOOD - CAROLINAS TRIM TRANSITION 10 In Q3 FY16 the Carolinas market will transition to a new technology trim finished in our Plant City, FL facility, which enables: - Better Product - No Back-Grooves - Installs Easier - Improved Service Position - Better Capacity Utilization
Slide 11: Growth Against Wood – Artisan V Rustic
PAGE GROWTH AGAINST WOOD – ARTISAN V RUSTIC 11 Artisan V Rustic was launched into the California market in 2014, providing key learning & development in manufacturing and in how to market to fragmented “Top of Market” customers.
Slide 12: Contractor Alliance Program
PAGE CONTRACTOR ALLIANCE PROGRAM 12 A successful launch of the RR Contractor Alliance Program has resulted in more contractors, more sold jobs, and higher engagement in the program.
Slide 13: Growth Against Vinyl – Ambassador Program
PAGE GROWTH AGAINST VINYL – AMBASSADOR PROGRAM 13 The Ambassador Program has expanded into new geographies and we have leveraged our leads to acquire new contractor partners. # Participating Contractors Ambassador Generated Leads
Slide 14: Growth Against Fiber Cement and Chip Board
PAGE Growth Against Fiber Cement and Chip Board 14 Our multi-brand strategy remains key to providing the right products to the right customers. In FY15 we increased investments in promoting our product performance advantages over generic fiber cement and chip board.
Slide 15: Fragmented Customer Marketing
PAGE FRAGMENTED CUSTOMER MARKETING 15 Investments in inside sales and customer aggregation events (mobile tours) have yielded: - Increased lead generation in fragmented markets - Improved customer experiences - Increased sales / conversions
Slide 16: 100% Hardie
PAGE 100% HARDIE 16 The 100% Hardie Program offers concierge-style marketing services to builders who utilize a full-wrap product solution. Services include: - Welcome kits - Co-branded model home marketing tools - PR Announcements - Advertising – Web / Print / Billboard - Parade of Homes support -
Slide 17: Customer Experience
PAGE CUSTOMER EXPERIENCE 17 Our annual survey of customer experience across our distribution channel showed strong progress in almost all areas, especially in areas weighted most important by customers. FY14 FY15 YOY FY14 FY15 YOY Product Quality 4.3 4.6 0.3 On Time & Complete Delivery 3.7 4.1 0.4 F
Slide 18: Marketing
PAGE MARKETING 18 Our new website (launched Nov 2014) and more aggressive digital marketing has driven improvement in our digital presence.
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Slide 20: Marketing – Campaign Example
PAGE MARKETING – CAMPAIGN EXAMPLE 20 To raise awareness of James Hardie’s performance advantage in high-wind markets, a multi-media marketing campaign was launched. Tactics - Direct Sales Education & Promotion - TV – Ads & Consumer Interest Stories - Customer E-Communication - rd Party Sponsorships
Slide 21: Interiors
PAGE INTERIORS 21 • Market Overview • JH Value Proposition and Market Position • Execution and Results
Slide 22: Market Overview
PAGE MARKET OVERVIEW 22 Total Tile Sales = 2,400 mmsf Total Performance Underlayment Opportunity Opportunity = Tile volume less applications that do not require an underlayment: • Direct to concrete • Greenboard/non-wet area walls • Mortar
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Slide 24: Messaging Strategy: The Three Pillars
PAGE MESSAGING STRATEGY: THE THREE PILLARS 24
Slide 25: Made Better
PAGE Made Better 25 Formulation How It’s Made Benefits
Slide 26: Installs Better
PAGE INSTALLS BETTER 26 Cutting Nails and Screws Floor vs. Wall
Slide 27: Performs Better
PAGE PERFORMS BETTER 27 Moisture resistance Mold resistance Tile adhesion Protects the tile and the work
Slide 28: Improved Organizational Execution
PAGE IMPROVED ORGANIZATIONAL EXECUTION Relationship Education Position Inventory Conversion 28 The organization has been designed and staffed to deliver on our retail selling approach R E P I C
Slide 29: Retail Store Segmentation
PAGE RETAIL STORE SEGMENTATION 29 • Enhanced segmentation for rep direction “Where to go, What to do” • Focus on: – Conversions in “Contractor” stores – Retail fundamentals in “Retail” stores High (200 spd) Medium (32spd) Consolidated Fragmented 80 spd C onctractors Identify / Convert C onctractor I
Slide 30: Sales Organization
PAGE SALES ORGANIZATION +32% +28% 30 Conversions (MMSF) Average Rep Tenure (Years) Rep Tenure And Conversions FY16TD FY15TD • Creation of dedicated interiors career path driving tenure • Higher tenured reps delivering more conversions
Slide 31: National Backer Retail POS Results
PAGE NATIONAL BACKER RETAIL POS RESULTS 31 Current Year Previous Year +7% North Texas District Market Share FY 16 FY 15
Slide 32: Summary
PAGE SUMMARY 32 • Manufacturing performing well and new capital investments starting to return value • Continue to invest in growth initiatives – Product line extensions to increase available market – Funding PDG projects and programs – Improvements in customer outreach and experience • Interiors po
Slide 33: Questions
PAGE QUESTIONS 33
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