James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (June 2015)
18 slides from James Hardie Industries's investor day presentation, Jun 22, 2015
Slide 1: Australian Investor Day June 2015
INVESTOR PRESENTATION Australian Investor Day 19 JUNE 2015 Exhibit 99.2
Slide 2: Disclaimer: Forward-Looking Statements
PAGE DISCLAIMER 2 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
Slide 3: Disclaimer (continued)
PAGE DISCLAIMER (continued) 3 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-
Slide 4: Agenda
PAGE AGENDA 4 James Hardie - Australian context Australian market overview Our performance Our focus Growth investment
Slide 5: The Australian business in context
PAGE The Australian business in context 5 5 ² EBIT excludes asbestos,non-recurring stamp duty and New Zealand weathertightness claims
Slide 6: We operate in the Australian building and construction market
PAGE We operate in the Australian building and construction market, with focus on buildings where people live and work 6 Renovation Mixed Commercial Attached Medium density Detached
Slide 7: Broad market access through our distribution channel
End user segments Channel Suppliers & major players We have broad market access through our distribution channel, with propositions targeted to key end user segments Volume builders Medium density Small- medium builder Commercial builder A&A 7 PAGE Australian Fibre Cement Market
Slide 8: The Australian building and construction market is in a favourable phase of the cycle
The Australian building and construction market is in a favourable phase of the cycle from a James Hardie perspective 8 8 PAGE FY15 relative to FY14 (YOY change) addressable market Our product portfolio is currently biased to new detached residential dwellings, medium density and A&A. We are looking
Slide 9: Structural change is occurring in the built form
PAGE Structural change is occurring in the built form, driven by employment opportunity and lifestyle choices 9 These two trends are creating the structural change to increased demand for higher density living. “Cities are shaped by where people live, where they work, and how they get around.” Jane-
Slide 10: A range of urban design and built form solutions are emerging
PAGE A range of urban design and built form solutions are emerging to create good quality higher density living 10 PAGE An increasing range of housing solutions is being delivered to the market to enable the living, working and transport preferences. 100 people per hectare 250 people per hectare 300
Slide 11: Increasing density leads to a change to the building material requirements
PAGE Increasing density leads to a change to the building material requirements 11 A change in construction starts… Impacts addressable external wall area Source: ABS Source: Abraham Akra – JH Market Analyst • Over the past decade, detached housing starts have been flat, whereas medium and high dens
Slide 12: Our long run performance is well above market
JH Top Line Growth Our long run performance is well above market, in line with a structural shift in demand 12 PAGE Top line growth Insights House price improvements along the east coast is expected to lift A&A activity and JH revenue in FY16 and FY17 Over the past decade, we have grown the business
Slide 13: Our demand generation model continues to be a key competitive advantage
PAGE Sustainable growth Increased OTW coverage Growth focused tools Targeting the right segments Differentiated products and systems Our demand generation model continues to be a key competitive advantage 13 PAGE James Hardie go to market - James Hardie’s demand driven model has been progressively d
Slide 14: Slide 14
Slide 15: There is a continued structural shift to modern methods of construction
There is a continued structural shift to modern methods of construction 15 PAGE Traditional methods of construction reducing in demand, driven by: – Growth in demand for lightweight solutions – Converting builders from double brick to frame construction – Shift away from detached dwellings to densit
Slide 16: The Australian capacity utilisation in fibre cement is strong
PAGE The Australian capacity utilisation in fibre cement is strong 16 JHX CSR BGC - JH estimate of total fibre cement capacity is 67M STM. - Market capacity utilisation in excess of 90%. - Structural rather than cyclical demand driving utilisation.
Slide 17: We are investing in capacity to support continued market penetration
17 We are investing in capacity to support continued market penetration 17 PAGE • Phased capital investment of $89M. • Increasing capacity to align with market demand. • Commissioning in line with expectations.
Slide 18: Questions?
Questions?