James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q1 FY24 Earnings Presentation
30 slides from James Hardie Industries's earnings presentation, Aug 8, 2023
Slide 1: Q1 FY24 Management Presentation
Q1 FY24 Management Presentation 8 AUGUST 2023
Slide 2: Cautionary Note on Forward-Looking Statements
JAMES HARDIE Q1 FY24 RESULTS CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Management Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the “Comp
Slide 3: Agenda
JAMES HARDIE Q1 FY24 RESULTS AGENDA • Strategy and Operations Update Aaron Erter CEO • Q1 FY24 Financial Results • Outlook and Guidance • Q&A Jason Miele CFO Page 3
Slide 4: Strategy and Operations Update
Strategy and Operations Update 8 AUGUST 2023
Slide 5: CEO Operations Update: Managing Decisively to Deliver Differentiated Results
JAMES HARDIE Q1 FY24 RESULTS CEO OPERATIONS UPDATE: MANAGING DECISIVELY TO DELIVER DIFFERENTIATED RESULTS Managed Decisively… …Delivered Differentiated Results Continue Strong Execution of • Global Adjusted Net Income of Our Strategy US$174.5 Million up 13% vs pcp Drive Profitable Volume • Record
Slide 6: Global Strategic Framework
JAMES HARDIE Q1 FY24 RESULTS GLOBAL STRATEGIC FRAMEWORK Homeowner Focused, Customer and Contractor Driven™ Strategic Initiatives Enabled by Profitably grow and take share where we Customer Integration 1 have the right to win Innovative Solutions Bring our customers high valued, 2 differentiated solu
Slide 7: Profitably Grow and Take Share Where We Have The Right to Win
JAMES HARDIE Q1 FY24 RESULTS 1. Profitably Grow and Take Share 2. Bring Our Customers High Valued, Where We Have The Right to Win Differentiated Solutions 8 Geographic Regions Product Solutions Magnolia Home Hardie™ Hardie® Plank Tacoma – 1998 Tacoma 2 – 2018 by James Hardie Architectural Lap Siding
Slide 8: Connect and Influence All Participants in the Customer Value Chain
JAMES HARDIE Q1 FY24 RESULTS 3. CONNECT AND INFLUENCE ALL THE PARTICIPANTS IN THE CUSTOMER VALUE CHAIN Homeowner Focused, Customer and Contractor Driven™ Customer Builder/Contractor Homeowners Brand of Choice Homeowner Marketing Cause Marketing Trade Marketing Retail Local Marketing Sponsorships Tex
Slide 9: Taking Share Profitably Over the Long-Term
JAMES HARDIE Q1 FY24 RESULTS TAKING SHARE PROFITABLY OVER THE LONG-TERM Fiber Cement Share of Primary Cladding of North America Adjusted EBIT Margin Single Family New Construction1 US$ Millions 24 +7% 23% Est. Share 900 13% 26% Share Gain 2022 23 ‘12 – ‘22 800 10 Yr Adj. 10 Yr Adj. EBIT CAGR EBIT Ma
Slide 10: Q1 FY24 Financial Results
Q1 FY24 Financial Results 8 AUGUST 2023
Slide 11: Strong Global Results in Q1
JAMES HARDIE Q1 FY24 RESULTS STRONG GLOBAL RESULTS IN Q1 Global Global Adjusted Record Global Operating Net Sales Net Income Adj. EBITDA% Cash Flow $954.3M $174.5M 29.2% $252.3M -5% +13% +430 bps +64% vs. pcp vs. pcp vs. pcp vs. pcp Page 11
Slide 12: Global Adjusted Net Income
JAMES HARDIE Q1 FY24 RESULTS GLOBAL ADJUSTED NET INCOME Adjusted Net Income of US$174.5 million increased US$20.2 million versus prior corresponding period • North America and APAC EBIT growth US$ Millions contributed US$29.9 million • Increased General Corporate Costs lowered Adjusted Net Income by
Slide 13: North America Summary
JAMES HARDIE Q1 FY24 RESULTS NORTH AMERICA SUMMARY Q1 FY24 Net Sales of US$694.8 Million 747.8 mmsf Sales Volume • Volume down 9% driven by reduced housing market activity -9% US$923 /msf • Average Net Sales Price up 3% Average Net Sales Price +3% US$694.8 M EBIT of US$217.6 Million, up US$25.8 Mill
Slide 14: APAC Summary
JAMES HARDIE Q1 FY24 RESULTS APAC SUMMARY Q1 FY24 Net Sales of A$209.7 Million 138.4 mmsf Sales Volume • Average Net Sales Price up 12% -8% A$1,358 /msf • Volume down 8% Average Net Sales Price +12% A$209.7 M EBIT of A$69.5 Million, up 35% and A$18.2 million vs pcp Net Sales +5% • Higher Net Sales A
Slide 15: Europe Summary
JAMES HARDIE Q1 FY24 RESULTS EUROPE SUMMARY Q1 FY24 Net Sales of €109.7 Million 187.0 mmsf Sales Volume • Average Net Sales Price up 22% -18% €478 /msf • Volume down 18% Average Net Sales Price +22% €109.7 M EBIT down 5% to €10.8 Million Net Sales -1% • Relatively flat Net Sales €10.8 M EBIT • Highe
Slide 16: Liquidity, Cash Flow, Capital Allocation & Capital Expenditure
JAMES HARDIE Q1 FY24 RESULTS LIQUIDITY, CASH FLOW, CAPITAL ALLOCATION & CAPITAL EXPENDITURE Liquidity Capital Allocation • US$580.7 million of liquidity at 30 June 2023 Framework • Invest in Organic Growth • 0.85x leverage ratio at 30 June 2023 • Maintain Flexible Balance Sheet • Strong liquidity po
Slide 17: Refined Approach to APAC Capacity
JAMES HARDIE Q1 FY24 RESULTS REFINED APPROACH TO APAC CAPACITY Creation of central capital/engineering team No change in ability to meet share gain goals for ANZ business for 15+ years Existing capacity potential increased by HMOS Better use of capital dollars Announced Rosehill pilot plan
Slide 18: Outlook and Guidance
Outlook and Guidance 8 AUGUST 2023
Slide 19: FY24 Market Outlook: North America
JAMES HARDIE Q1 FY24 RESULTS FY24 MARKET OUTLOOK: NORTH AMERICA1 External Range Change vs External Data Provider Average Presented 16 May 2023 US Single Family New Construction 0% to -21% Calendar 2023 Growth Outlook2 +5% Average: -12% External Range US Multi Family New Construction -6% to -25% Cale
Slide 20: North America – FY24 Quarterly Volume Sensitivity
JAMES HARDIE Q1 FY24 RESULTS NORTH AMERICA – FY24 QUARTERLY VOLUME SENSITIVITY Quarterly Volume Scenarios 600 650 700 750 mmsf mmsf mmsf mmsf Estimated Quarterly EBIT Margin (%) 25 – 27% 26 – 28% 28 – 30% 30 – 32% Given the uncertain nature of the US housing market, we have modeled our expected quar
Slide 21: Guidance: Q2 Fiscal Year 2024
JAMES HARDIE Q1 FY24 RESULTS GUIDANCE: Q2 FISCAL YEAR 2024 North America Volume 740 – 770 million standard feet North America EBIT Margin 30% - 32% Adjusted Net Income US$ 170 – 190 million Positioned for a Strong Second Quarter Page 21
Slide 22: James Hardie – A Global Growth Company
JAMES HARDIE Q1 FY24 RESULTS JAMES HARDIE – A GLOBAL GROWTH COMPANY Strong Growth Opportunities Experienced Management Team Brand of Choice Strong Balance Sheet & Cash Generation Innovation Pipeline Attractive Returns Integrated Localized Supply Chain Premium Products and Services Multi-Segment Focu
Slide 23: Questions
Questions 8 AUGUST 2023
Slide 24: Appendix
G JamesHardie aa, 8) AUGUST
Slide 25: Non-GAAP Financial Measures
JAMES HARDIE Q1 FY24 RESULTS NON-GAAP FINANCIAL MEASURES This Management 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
Slide 26: Non-GAAP Financial Measures
JAMES HARDIE Q1 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Page 26
Slide 27: Non-GAAP Financial Measures
JAMES HARDIE Q1 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Page 27
Slide 28: Non-GAAP Financial Measures
JAMES HARDIE Q1 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted interest, net US$ Millions Three Months Ended 30 June FY24 FY23 Interest, net $ 5.8 $ 8.8 AICF interest income, net (2.3) (0.2) Adjusted interest, net $ 8.1 $ 9.0 Page 28
Slide 29: Non-GAAP Financial Measures
JAMES HARDIE Q1 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted diluted earnings per share Three Months Ended 30 June FY24 FY23 Adjusted net income (US$ Millions) $ 174.5 $ 154.3 Weighted average common shares outstanding - 442.8 445.9 Diluted (millions) Adjusted diluted earnings per share $ 0.39
Slide 30: Q1 FY24 Management Presentation
Q1 FY24 Management Presentation 8 AUGUST 2023
James Hardie Industries — Q1 FY24 Earnings Presentation on 6ix