James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (November 2013)
38 slides from James Hardie Industries's investor presentation, Nov 25, 2013
Slide 1: Investor Presentation November 2013
For personal use only INVESTOR PRESENTATION NOVEMBER 2013 1
Slide 2: Disclaimer
For personal use only DISCLAIMER 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 shareh
Slide 3: Disclaimer (continued)
For personal use only DISCLAIMER (CONTINUED) Investor Presentation Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressi
Slide 4: Agenda
For personal use only AGENDA Investor Presentation • 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 financ
Slide 5: JHX: A Growth Focused Company
For personal use only JHX: A GROWTH FOCUSED COMPANY Investor Presentation Annual net sales US$1.5b Total assets US$1.6b Net cash US$126m Operations in North America, Asia Pacific and Europe 2,700 employees Market cap US$5.0b S&P/ASX 100 company NYSE ADR listing Note: Market capitaliz
Slide 6: Group Overview
For personal use only 1 GROUP OVERVIEW Investor Presentation US Millions Q2 Q2 % % HY2014 HY2013 FY2014 FY2013 Change Change Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses 56.3 38.9 45 108.3 82.7 31 and tax adjustments Net Operating Profit 51.9 15.0 19
Slide 7: JHX: A World Leader in Fibre Cement
For personal use only JHX: A WORLD LEADER IN FIBRE CEMENT Investor Presentation USA and Europe Fibre Cement Products Siding Soffit Fascia Trim Backerboard Asia Pacific Fibre Cement Products Residential siding Commercial exteriors Flooring Ceilings and internal walls 7
Slide 8: Global Business Portfolio
For personal use only 1 GLOBAL BUSINESS PORTFOLIO Investor Presentation 100% 90% 80% 70% 81% 76% 75% 60% 50% 40% 30% 20% 24% 25% 19% 10% 0% Volume Net Sales EBIT* USA and Europe Fibre Cement Asia Pacific Fibre Cement 1 All numbers are for the 2nd quarter ended 30 September 2013 *EBIT – Excludes Rese
Slide 9: Fibre Cement: Superior Product Performance
FIBRE CEMENT: For personal use only SUPERIOR PRODUCT PERFORMANCE Investor Presentation 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
Slide 10: Product Leadership Example: HardieZone System
PRODUCT LEADERSHIP EXAMPLE: For personal use only HARDIEZONE™ SYSTEM Investor Presentation • 7th Generation versus 2nd Generation generic fibre cement • The HardieZone™ System represents a logical extension of Hardie technology 10
Slide 11: The USA Business: Largest Fibre Cement Producer in North America
THE USA BUSINESS: LARGEST FIBRE For personal use only CEMENT PRODUCER IN NORTH AMERICA Investor Presentation 11
Slide 12: USA Fibre Cement Top Line Growth
For personal use only USA FIBRE CEMENT Investor Presentation Top Line Growth 3,000 $1,300 2,800 JH Volume (mmsf), Starts (000s Units) $1,200 2,600 $1,100 2,400 $1,000 2,200 $900 Revenue (US$M) 2,000 1,800 $800 1,600 $700 1,400 $600 1,200 $500 1,000 $400 800 $300 600 400 $200 200 $100 0 $0 '02 '00 '0
Slide 13: USA and Europe Fibre Cement
For personal use only USA AND EUROPE FIBRE CEMENT Investor Presentation 13
Slide 14: USA and Europe Fibre Cement
For personal use only USA AND EUROPE FIBRE CEMENT Investor Presentation 14
Slide 15: Total US Housing Starts
For personal use only TOTAL US HOUSING STARTS Investor Presentation U.S. Housing Starts Calendar Quarters 800 50% 37.8% 600 40% 28.0% 34.3% 30% 400 23% 17% 18.4% 25.2% 20% 200 23.4% 12% (Thousands of Starts) 17.2% 6% 7% 7% 4% 6% 10% 4% 0 -1% 0% -200 -9% -5% -10% -3% -7% -400 -19% -19% -21% -25% -23%
Slide 16: Asia Pacific Fibre Cement
For personal use only ASIA PACIFIC FIBRE CEMENT Investor Presentation Five manufacturing plants in Asia Pacific 1 Net sales US$374.8m 1 EBIT US$86.4m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities 1 Net Sales and EBIT equal to
Slide 17: Asia Pacific Fibre Cement - Examples
For personal use only ASIA PACIFIC FIBRE CEMENT - EXAMPLES Investor Presentation Ceilings and partitions Exterior cladding Philippines Australia Australia Interior walls New Zealand General purpose flooring 17
Slide 18: Capital Management and Dividends
For personal use only CAPITAL MANAGEMENT AND DIVIDENDS Investor Presentation • On 14 November 2013, the company announced an ordinary dividend of US8.0 cents per security, up from US5.0 cents per security in the prior corresponding half year. The dividend was declared in US currency and will be paid
Slide 19: Capital Management and Dividends (Cont'd)
For personal use only CAPITAL MANAGEMENT AND DIVIDENDS (CONT’D) Investor Presentation The company will be undertaking a further review of its capital structure and capital management objectives and expects to be in a position to make further distributions to shareholders in the near term as follows:
Slide 20: Group Outlook
For personal use only GROUP OUTLOOK Investor Presentation USA and Europe Fibre Cement • The US operating environment continues to reflect an increasing number of housing starts and improving house values • The company is continuing with its plan to expand capacity through new capital investments and
Slide 21: Summary
For personal use only SUMMARY Investor Presentation 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
Slide 22: Appendix
For personal use only APPENDIX 22
Slide 23: Global Strategy
For personal use only GLOBAL STRATEGY Investor Presentation 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 Australia Introduce differentiated
Slide 24: Key Ratios
For personal use only KEY RATIOS Investor Presentation 24
Slide 25: USA and Europe Fibre Cement Year Results Overview
USA AND EUROPE FIBRE CEMENT For personal use only 5 YEAR RESULTS OVERVIEW Investor Presentation FY09 FY10 FY11 FY12 FY13 Net Sales 929 828 814 862 951 US$m Sales Volume 1,527 1,304 1,248 1,332 1,489 mmsf Average Price 608 632 648 642 627 2 US$ per msf EBIT US$m 1 199 209 160 163 163 EBIT Margin % 1
Slide 26: Asia Pacific Fibre Cement Year Results Overview
ASIA PACIFIC FIBRE CEMENT For personal use only 5 YEAR RESULTS OVERVIEW Investor Presentation FY09 FY10 FY11 FY12 FY13 Net Sales 273 297 353 376 370 US$m Sales Volume 391 390 408 392 394 mmsf Average Price 871 886 906 906 901 US$ per msf 2 1 EBIT US$m 47 59 79 86 75 1 EBIT Margin % 17 20 23 23 20 1E
Slide 27: Financial Summary
For personal use only FINANCIAL SUMMARY 1 Investor Presentation US$ Millions Q2 '14 Q2 '13 % Change HY '14 HY '13 % Change Net Sales USA and Europe Fibre Cement $ 298.7 $ 238.1 25 $ 576.8 $ 490.1 18 Asia Pacific Fibre Cement 93.3 96.3 (3) 187.4 184.0 2 Total Net Sales $ 392.0 $ 334.4 17 $ 764.2 $ 67
Slide 28: Endnotes
For personal use only ENDNOTES Investor Presentation This Investor Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Media Release and Condensed Conso
Slide 29: Endnotes (continued)
For personal use only ENDNOTES (CONTINUED) Investor Presentation 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
Slide 30: Endnotes (continued)
For personal use only ENDNOTES (CONTINUED) Investor Presentation 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
Slide 31: Non-US GAAP Financial Measures
For personal use only NON-US GAAP FINANCIAL MEASURES Investor Presentation EBIT and EBIT margin excluding asbestos, ASIC expenses and New Zealand product liability expenses – EBIT and EBIT margin excluding asbestos, ASIC expenses and New Zealand product liability expenses are not measures of financi
Slide 32: Non-US GAAP Financial Measures (Cont'd)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments – Net operating profit excluding asbestos, ASIC expenses, New Zealand product liability expenses and
Slide 33: Non-US GAAP Financial Measures (Cont'd)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Diluted earnings per share excluding asbestos, ASIC expenses, New Zealand product liability expenses and tax adjustments – Diluted earnings per share excluding asbestos, ASIC expenses, New Zealand product liability e
Slide 34: Non-US GAAP Financial Measures (Cont'd)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation Effective tax rate excluding asbestos, New Zealand product liability expenses and tax adjustments – Effective tax rate on earnings excluding asbestos, New Zealand product liability expenses and tax adjustments is not
Slide 35: Non-US GAAP Financial Measures (Cont'd)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation 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 GAA
Slide 36: Non-US GAAP Financial Measures (Cont'd)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs – General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery o
Slide 37: Non-US GAAP Financial Measures (Cont'd)
For personal use only NON-US GAAP FINANCIAL MEASURES (CONT’D) Investor Presentation 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 financ
Slide 38: For personal use only
For personal use only INVESTOR PRESENTATION NOVEMBER 2013 38
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