James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Hardie James Industries — Investor Day (September 2008)
12 slides from James Hardie Industries's investor day presentation, Sep 17, 2008
Slide 1: James Hardie US Investor Visit: ColorPlus
James Hardie US Investor A @Jsames Hardie 14-17 September 2008 | Denver C ColorPlus Nigel Rigby, Vice President — G Manager Northern Divisio
Slide 2: Forward-looking statements
This Management Presentation contains forward-looking statements. We may from time to time make forward-looking statements in our periodic reports filed with or furnished to the United States Securities and Exchange Commission on Forms 20-F and 6-K, in our annual reports to shareholders, in offering
Slide 3: Contents
ColorPlus Business Model ColorPlus Business Evolution ColorPlus Operating Efficiency Internal and External Supply Chain Efficiency ColorPlus Market Performance Improvement ColorPlus Go Forward Contents
Slide 4: Color Business Model
Vinyl Penetration through optimising the supply chain closing the gap to Vinyl to <$1.0sf / $3000 per home Eliminate the site painter through full warp ColorPlus Reduce the complexity and improve efficiency from Hardie to the Builder Increase the Revenue per home through ColorPlus full wrap differen
Slide 5: ColorPlus Business Evolution
Color development 2003 - 2006 Design and commissioning of ColorPlus JIT process and lines Development and execution of the ColorPlus supply chain Color Operational Efficiency 2006 - 2008 Drive the Made to Order / JIT operation efficiency Evolve the supply chain to the builder driving ColorPlus penet
Slide 6: Color Operating Efficiency
Evolving ColorPlus JIT business is achieving operating efficiency We are targeting Hardie fiber cement yields in Paint efficiency Step change in technology - Paint, Application and Laminate Color Operating Efficiency Cash Costs ColorPlus Q1 FY07 Q2 FY07 Q3 FY07 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY0
Slide 7: Internal Supply Chain Efficiency
Goal - 10 days delivered Moved from a weekly batch to a rolling lead time and variable schedule eliminating 2 days. Automated shop floor control Light Dark Flexible Colour Sequence Internal Supply Chain Efficiency
Slide 8: External Supply Chain Efficiency
Execute the Value Proposition to the Builder 4 distribution models are evolving consolidating ColorPlus inventory per market Rural and fragmented markets Logistics Partner, Job Pack to Site, In market DC Consolidated dealer partners who drive scale and penetration Network of market leader dealers (c
Slide 9: Stepped up changing the Industry: ColorPlus efficiency
Stepped up changing the Industry ColorPlus efficiency leveraging the declining market New England - On The Wall Cost $- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 Cost per Square (100 sqft) XLD Trim w/ Labor $108.00 $126.00 $118.00 $108.00 $100.00 $- Vinyl trim w/ labor $- $- $- $- $- $65.00 Pa
Slide 10: Color Mix is moving to dark colors
Color Mix is moving to dark colors which plays to Hardie ColorPlus advantage over Vinyl Color Mix is Moving to Hardie Color Type Trend - Northern Division 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Total C+ Light Colors 90% 89% 89% 84% 83% 79% 76% 77% 78% 75% 75% 75% 72% Dark Colors 10% 11% 11
Slide 11: ColorPlus has continued to grow in the declining market
ColorPlus has continued to grow in the declining market ColorPlus penetration is driven by vinyl conversion - primed to color remains a focus ColorPlus Growth - - 10 20 30 40 50 60 70 80 90 100 110 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2est Q3est Q4est (mmsf) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Slide 12: ColorPlus Go Forward
Develop the next generation ColorPlus Supply Chain building on the model we have successfully executed Flexible, low volume / high changeover ColorPlus line possibly in market Southern ColorPlus capacity in Texas Automate the shop floor from Wip to Dealer enabling 10 days delivered Drive ColorPlus o
Hardie James Industries — Investor Day (September 2008) on 6ix