James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (October 2003)
14 slides from James Hardie Industries's investor presentation, Oct 30, 2003
Slide 1: James Hardie
@) 4ames Hardie James Hardie 30 October 2003
Slide 2: Overview
@) James Hardie Overview « Establishment of Foundation — Recap * Background = Structure = Assets = Benefits for claimants = Benefits for shareholders « Foundation developments « Foundation statement « Foundation funding largely intact # Establishment was fair, legitimate and transparent « JHI NV’s l
Slide 3: Background
Establishment of Foundation - Recap Background Established in February 2001 to: =» Compensate people injured by asbestos from former group subsidiaries = Fund medical research aimed at finding cures Completely independent, non profit organisation with its own board and management Established with as
Slide 4: Structure
Establishment of Foundation - Recap Structure * Foundation controls two former subsidiaries of the former parent company, AMABA and AMACA, that manufactured asbestos = All shares in AMABA and AMACA were vested to Foundation « Assets in AMABA and AMACA totalled A$296 million including A$90m above net
Slide 5: Assets
@) James Hardie Establishment of Foundation - Recap Assets « Established with assets of A$296 million to meet legitimate asbestos related claims on AMABA and AMACA s Investment income from assets would enable total claims payments to significantly exceed A$296 million « Independent advice was provid
Slide 6: Benefits for Claimants
@) James Hardie Establishment of Foundation - Recap Benefits for Claimants « Greater certainty = Foundation focussed on compensation « Anticipated future claims were expected to be met * Foundation has irrevocable rights to the assets = Assets not to be used for other purposes ahead of claims ® Righ
Slide 7: Benefits for Shareholders
Establishment of Foundation - Recap Benefits for Shareholders « Greater certainty « Asbestos costs no longer impact P&L No future asbestos provision required Nature and extent of liability is clarified Management focus entirely on core business Investor focus entirely on core business Increased attr
Slide 8: Foundation Developments
Foundation Developments Impact of AASB 1044 * Requirement for AMACA and AMABA to disclose actuarial assessment of estimated contingent asbestos liability = tis understood that AMABA and AMACA accounts show a shortfall in assets available to meet estimated contingent liability ® Disclosing contingent
Slide 9: Foundation Statement
Foundation Statement # Foundation claims existing funding could be exhausted within 5 years * Foundation unsuccessfully sought additional funding from James Hardie to meet expected liabilities # Foundation is investigating a range of legal options involving James Hardie or related entities to ensure
Slide 10: Foundation Funding Largely Intact
@) James Hardie Foundation Funding Largely Intact * Clearly there is no funding shortfall today. The Foundation’s net worth is close to what it was at time of establishment * It will receive $130 million from agreed schedule of indemnity payments and insurance settlements — this is on top of its cas
Slide 11: Establishment was fair, legitimate & transparent
Establishment was fair, legitimate & transparent « Former parent company board took expert advice in determining funds provided # Best information available was used « |ncome assumptions were low end of 10 year historical performance « Extensive consultation with acknowledged experts and interested
Slide 12: James Hardie's Legal and Financial Position Unchanged
@) James Hardie . . o James Hardie’s Legal and Financial Position Unchanged = There was no parent company liability for AMACA and AMABA before or after the establishment of the Foundation, or before or after the restructure s There is no basis for legal action by the Foundation against JHI NV or any
Slide 13: Wider Issue
@) James Hardie Wider Issue « Actuarial cost estimates adopted in AMACA and AMABA accounts show a dramatic departure from many years of consistent and stable actuarial estimates of future claim costs # Itis difficult to contemplate any basis for such a change but a substantial departure would indica
Slide 14: Disclaimer
@) James Hardie Disclaimer This presentation contains forward-looking statements. Words such as "believe," “anticipate,” "plan," "expect," “intend,” “target,” "estimate," “project,” “predict,” “forecast,” “guideline,” “should,” "aim" and similar expressions are intended to identify forward-looking s
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