James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (July 2013)
36 slides from James Hardie Industries's investor presentation, Jul 23, 2013
Slide 1: Investor Presentation July/August 2013
INVESTOR PRESENTATION JULY/AUGUST 2013 Exhibit 99.1
Slide 2: Forward-looking statements
Investor Presentation 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 shareholders, in offering circulars, in
Slide 3: Agenda
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 financial measures included
Slide 4: JHX: A Growth Focused Company
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 capitalization, net sales annualised, total ass
Slide 5: Group Overview
Investor Presentation GROUP OVERVIEW Comparisons are of the th quarter and full fiscal year as at March versus the th quarter and full year result of the prior fiscal year. Includes $485.2m tax benefit arising on conclusion of RCI’s disputed amended assessment with the Australian Taxation Office.
Slide 6: JHX: A World Leader in Fibre Cement
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
Slide 7: Global Business Portfolio
Investor Presentation GLOBAL BUSINESS PORTFOLIO All numbers are for the financial year ended 31 March 2013 21% Volume 72% 68% 32% EBIT* USA and Europe Fibre Cement Asia-Pacific Fibre Cement 79% 28% Net Sales * EBIT – Excludes Research and Development EBIT, Asbestos-related items, Asset impairment ch
Slide 8: Fibre Cement – Superior Product Performance
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 resistant Hail resistant Resists
Slide 9: Product Leadership Example – HardieZone System
Investor Presentation th Generation versus nd Generation generic fibre cement The HardieZone™ System represents a logical extension of Hardie technology PRODUCT LEADERSHIP EXAMPLE – HARDIEZONE™ SYSTEM • •
Slide 10: The USA Business – Largest Fibre Cement Producer in North America
Investor Presentation THE USA BUSINESS – LARGEST FIBRE CEMENT PRODUCER IN NORTH AMERICA
Slide 11: USA Fibre Cement
Investor Presentation USA FIBRE CEMENT Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau Market and category share tracked as planned in FY13
Slide 12: USA & Europe Fibre Cement: Quarterly EBIT and EBIT Margin
Investor Presentation USA & EUROPE FIBRE CEMENT Quarterly EBIT and EBIT Margin Excludes asset impairment charges of US$38.6 million in th quarter FY08, US$14.3 million in th quarter FY12, US$5.8 million in rd quarter FY13 and US$11.1 million in th quarter FY13
Slide 13: USA & Europe Fibre Cement: Average Net Sales Price
Investor Presentation USA & EUROPE FIBRE CEMENT Average Net Sales Price (US dollars ) US$639
Slide 14: Total US Housing Starts
Investor Presentation TOTAL US HOUSING STARTS
Slide 15: Asia Pacific Fibre Cement
Investor Presentation ASIA PACIFIC FIBRE CEMENT Five manufacturing plants in Asia Pacific Net sales US$370m EBIT US$75m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities. Net Sales and EBIT for the financial year ended 31 March 2013, and EBI
Slide 16: Asia Pacific Fibre Cement – Examples
Investor Presentation Ceilings and partitions Philippines Exterior cladding General purpose flooring Australia New Zealand Interior walls ASIA PACIFIC FIBRE CEMENT - EXAMPLES Australia
Slide 17: Share buyback program and capital distributions
Investor Presentation • A new share buyback program to acquire up to 5% of issued capital over the next 12 months. The actual shares that the company may buyback will be subject to share price levels, consideration of the effect of the share buyback on return on equity, and capital requirements • If
Slide 18: Group Outlook
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 new housing market The comp
Slide 19: Summary
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 Proprietary and/or protected tech
Slide 20: Appendix
APPENDIX
Slide 21: Global Strategy
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 Introduce differentiated products to deliver a sustainable comp
Slide 22: Key Ratios
Investor Presentation KEY RATIOS * * Certain reclassifications have been reflected in the prior periods shown above to conform with current period presentation Excludes asbestos adjustments, AICF SG&A expenses, asset impairments, New Zealand product liability expenses and ASIC expenses/recoveries In
Slide 23: USA & Europe Year Results Overview
Investor Presentation FY09 FY10 FY11 FY12 FY13 USA & EUROPE 5 YEAR RESULTS OVERVIEW Net Sales US$m Sales Volume mmsf 1,527 1,304 1,248 1,332 1,489 Average Price US$ per msf EBIT US$m EBIT Margin % Excludes asset impairment charges of US$14.3 million and US$16.9 million in FY12 and FY13, respectively
Slide 24: Asia Pacific Year Results Overview
Investor Presentation FY09 FY10 FY11 FY12 FY13 ASIA PACIFIC 5 YEAR RESULTS OVERVIEW Net Sales US$m Sales Volume mmsf Average Price US$ per msf EBIT US$m EBIT Margin % Excludes New Zealand product liability expenses of US$5.4 million and US$13.2 million in FY12 and FY13, respectively .
Slide 25: Financial Summary
Investor Presentation FINANCIAL SUMMARY USA and Europe Fibre Cement EBIT excludes asset impairments of US$11.1 million (4 quarter FY13), US$14.3 million (4 quarter FY12), US$16.9 million (FY13) and US$14.3 million (FY12). Asia Pacific Fibre Cement EBIT excludes New Zealand product liability expenses
Slide 26: Endnotes – Definitions
Investor Presentation ENDNOTES Definitions Non-financial Terms ABS – Australian Bureau of Statistics AFFA – Amended and Restated Final Funding Agreement AICF – Asbestos Injuries Compensation Fund Ltd ASIC – Australian Securities and Investments Commission ATO – Australian Taxation Office NBSK – Nort
Slide 27: Endnotes (continued)
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 its consolidated finan
Slide 28: Endnotes (continued)
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 foot is defined as a
Slide 29: Non-US GAAP Financial Measures
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 liability expenses are not mea
Slide 30: Non-US GAAP Financial Measures (continued)
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, New Zealand product liab
Slide 31: Non-US GAAP Financial Measures (continued)
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 expenses, New Zealand
Slide 32: Non-US GAAP Financial Measures (continued)
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 liability expenses and tax
Slide 33: Non-US GAAP Financial Measures (continued)
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 GAAP or as a measure o
Slide 34: Non-US GAAP Financial Measures (continued)
Investor Presentation NON-US GAAP FINANCIAL MEASURES (CONTINUED) corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than general corpora
Slide 35: Non-US GAAP Financial Measures (continued)
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 financial performance und
Slide 36: July/August 2013
INVESTOR PRESENTATION JULY/AUGUST 2013
James Hardie Industries — Investor Presentation (July 2013) on 6ix