James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2017)
19 slides from James Hardie Industries's investor day presentation, Sep 14, 2017
Slide 1: James Hardie Investor Update
JAMES HARDIE INVESTOR UPDATE Louis Gries Exhibit 99.2
Slide 2: Agenda
PAGE 2 AGENDA • NA FC Organic Growth Strategy & Returns • Beyond FC in North America • Organization Capability to Deliver
Slide 3: Share Growth in North America
PAGE 3 SHARE GROWTH IN NORTH AMERICA Growth Above Market Index Primary Demand Growth (PDG) Growth against Vinyl, Stucco and Brick Hard Siding Alternatives Growth against Natural Wood Defend against lower value substitutes: OSB, Hardboard, CFC
Slide 4: Homeowner Value Proposition
PAGE 4 HOMEOWNER VALUE PROPOSITION • Curb, porch & deck appeal • Fire & abuse • Low maintenance • Affordable
Slide 5: Market Development to Convert Vinyl
PAGE 5 MARKET DEVELOPMENT TO CONVERT VINYL New Construction - Geography - Category of home - Builder profile - Better home ↔ Better builder ↔ Better development Segment / Target / Position Basics Repair & Remodel - Geography - Neighborhoods - Value proposition direct to home owner
Slide 6: Defend Against Lower Value Substitutes
PAGE 6 DEFEND AGAINST LOWER VALUE SUBSTITUTES Homeowner Value Proposition - Engineered for climate durability - Lower maintenance - Substrate - Surface finish - Full exterior wrap Keys to defend against discounting - Channel partners - Homeowner awareness - Contractor alignment
Slide 7: Safety at the Forefront
PAGE 7 SAFETY AT THE FOREFRONT Safety culture evolving from 2&10 to Zero Harm • Standard and sustainable systems • Establish playbook and train employees • Zero tolerance for unsafe behaviors
Slide 8: Drive Delivered Unit Cost Trends
PAGE 8 DRIVE DELIVERED UNIT COST TRENDS Improving delivered unit cost trend … in a sustainable way 1Q FY18 FY17 Delivered Unit Cost
Slide 9: Expand Product Capability
PAGE 9 EXPAND PRODUCT CAPABILITY Future Capability Durability Density Surface Finish Shapes Sourcing Alternatives Engineered for Climate
Slide 10: North America Manufacturing Capacity
PAGE 10 2.4 3.7 0.2 0.1 0.7 0.3 FY10 Nameplate FY13 Wax Restart FY14 Fontana Restart FY17 Start Ups FY18 Start Ups FY18 Nameplate NORTH AMERICA MANUFACTURING CAPACITY Capacity Expansion Since Housing Downturn • Fontana 1 • Plant City 4 • Cleburne 3 Future capacity additions: • FY19 & FY20 greenfield
Slide 11: FY19 Capacity Outlook
PAGE 11 FY19 CAPACITY OUTLOOK 3.7 2.8 Bi llio ns o f S qu ar e Fe e t FY19 Capacity
Slide 12: Beyond Current North America Organic Growth Strategy
BEYOND CURRENT NORTH AMERICA ORGANIC GROWTH STRATEGY
Slide 13: International
PAGE 13 INTERNATIONAL • Steady share gains in APAC • Reset game plan in Europe • Further expansion with GDP per capita bias
Slide 14: Non-Fiber Cement in North America
PAGE 14 NON-FIBER CEMENT IN NORTH AMERICA Capabilities Assets Differentiated Product or Business Model Target Building Materials Organic Growth Potential with Defendable Moats Leverage James Hardie Growth Segments Searching Across Close Adjacencies Large Market Size Continue to explore options in No
Slide 15: Organizational Capability to Enable
ORGANIZATIONAL CAPABILITY TO ENABLE
Slide 16: Management Team
PAGE 16 MANAGEMENT TEAM Sean Gadd EVP, Markets & Segments 22 Years; 13 JH Years Jack Truong President, International 27 Years; <1 JH Years Matthew Marsh CFO and EVP 20 Years; 4 JH Years Ryan Kilcullen EVP, Operations 14 Years; 10 JH Years Louis Gries CEO 39 Years; 26 JH Years Zean Nielsen EVP, NA Sa
Slide 17: FY17/18 Supply Issues & Ramifications
FY17/18 SUPPLY ISSUES & RAMIFICATIONS
Slide 18: Supply Issues & Ramifications
PAGE 18 SUPPLY ISSUES & RAMIFICATIONS • Focus has shifted to building on traction in manufacturing now that demand / supply equation has returned to balance • Recapturing lost ground in the market … significant effort is required • Improving delivered unit cost trend with network stabilization
Slide 19: Key Messages
PAGE 19 KEY MESSAGES • Zero Harm safety commitment • Manufacturing reset • Regain market traction lost during supply shortage period • International growth • Non-FC opportunity scans • Management team build • Broad-based organizational capability build
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