James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q1 FY22 Earnings Presentation
33 slides from James Hardie Industries's earnings presentation, Aug 10, 2021
Slide 1: Q1 FY22 Management Presentation
Q1 FY22 MANAGEMENT PRESENTATION 10 August 2021
Slide 2: Cautionary Note on Forward-Looking Statements
James Hardie Q1 FY22 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 FY22 Results AGENDA • Strategy Update Dr. Jack Truong Chief Executive Officer • Q1 FY22 Financial Results • Questions and Answers Jason Miele Chief Financial Officer Page 3
Slide 4: Strategy Update
STRATEGY UPDATE
Slide 5: FY22 and Beyond: Drive Profitable Growth Globally
James Hardie Q1 FY22 Results FY22 AND BEYOND: DRIVE PROFITABLE GROWTH GLOBALLY 1 Market to Homeowners to Create Demand 2 Penetrate and Drive Profitable Growth in Existing and New Segments 3 Commercialize Global Innovations by Expanding Into New Categories Continued Execution and Expansion of Foundat
Slide 6: Profitable Organic Growth Through Marketing to Homeowners
James Hardie Q1 FY22 Results 1 PROFITABLE ORGANIC GROWTH THROUGH MARKETING TO HOMEOWNERS 360 INTEGRATED MARKETING CAMPAIGN AWARENESS It’s Possible With James Hardie™ Page 6
Slide 7: Profitable Organic Growth Through Marketing to Homeowners
James Hardie Q1 FY22 Results 1 PROFITABLE ORGANIC GROWTH THROUGH MARKETING TO HOMEOWNERS CONSIDERATION SOCIAL & PROGRAMMATIC INFLUENCER EPICENTER CREATIVE MARKETING CAMPAIGN – KIA MALONE Link to Instagram Post Page 7
Slide 8: Drive High Value Product Mix in North America
James Hardie Q1 FY22 Results 2 PENETRATE AND DRIVE PROFITABLE GROWTH IN EXISTING AND NEW SEGMENTS Drive High Value Product Mix in North America Price 21% Average Net Sales Price (US$/msf) 10% 17% 20% $2,000 9% 10% Hardie® market-led % Price/Mix Growth Over pcp 15% % Volume Growth Over pcp 11% 10% 11
Slide 9: Profitable Organic Growth via Innovation – North America
James Hardie Q1 FY22 Results 3 PROFITABLE ORGANIC GROWTH VIA INNOVATION – NORTH AMERICA HARDIE® TEXTURED PANELS Oregon, USA Oregon, USA California, USA Utah, USA Page 9
Slide 10: Profitable Organic Growth via Innovation – Australia
James Hardie Q1 FY22 Results 3 PROFITABLE ORGANIC GROWTH VIA INNOVATION – AUSTRALIA HARDIE™ FINE TEXTURE CLADDING Victoria, Australia Queensland, Australia Queensland, Australia New South Wales, Australia Page 10
Slide 11: Profitable Organic Growth via Innovation – Europe
James Hardie Q1 FY22 Results 3 PROFITABLE ORGANIC GROWTH VIA INNOVATION – EUROPE HARDIE® VL PLANK United Kingdom United Kingdom France Page 11
Slide 12: Nine Consecutive Quarters of Delivering Growth Above Market
James Hardie Q1 FY22 Results NINE CONSECUTIVE QUARTERS OF DELIVERING GROWTH ABOVE MARKET AND STRONG RETURNS North America Global Net Sales Net Sales US$577.1 million +28% Adj. EBIT US$169.3 million +29% US$843.3 million Adjusted EBIT Margin 29.3% +35% Europe Net Sales €103.3 million +37% Allmillion
Slide 13: Q1 FY22 Financial Results
Q1 FY22 FINANCIAL RESULTS
Slide 14: Global Results
James Hardie Q1 FY22 Results GLOBAL RESULTS • All 3 regions delivered exceptional net sales and EBIT growth • Adjusted EBIT increased 45% for the quarter, driven by: ◦ North America +29% (+US$38.4 million) ◦ Europe +575% (+€11.5 million) ◦ APAC +50% (+A$16.8 million) • Adjusted Net Income increased
Slide 15: North America Summary
James Hardie Q1 FY22 Results NORTH AMERICA SUMMARY • Net sales growth of +28% for the quarter, to US$577.1 million • Volume increased +21% for the quarter • Exteriors volume +23% • Interiors volume +13% • Price/Mix increased +7% • Gaining momentum in High Value Product penetration with our customers
Slide 16: Europe Summary
James Hardie Q1 FY22 Results EUROPE SUMMARY • Net Sales growth of +37%, to €103.3 million, for the quarter • Volume increased +28% for the quarter • Price/Mix increased +9% • Fiber Cement Net Sales +91% for the quarter • Adjusted EBIT growth of +575% at an EBIT margin of 13.1% for the quarter • Stro
Slide 17: APAC Summary
James Hardie Q1 FY22 Results APAC SUMMARY • Net sales growth of +33%, to A$184.1 million, for the quarter • Volumes +41% for the quarter • All 3 countries delivered exceptional volume growth • Philippine's volume +158% versus pcp causing blended APAC price/mix impact to be negative (Net Sales growth
Slide 18: Operating Cash Flow and Capital Expenditures
James Hardie Q1 FY22 Results OPERATING CASH FLOW CAPITAL EXPENDITURES 781.8 Operating Cash Flow US$ Millions 800 700 600 500.2 1 500 400 300 189.2 184.1 200 100 0 Q1 FY21 Q1 FY22 Quarterly TTM Strong operating cash flow of US$184.1 million Prattville plant on track to be best startup for Q1 FY22 and
Slide 19: Capital Allocation Aligned to Profitable Growth Strategy
James Hardie Q1 FY22 Results CAPITAL ALLOCATION ALIGNED TO PROFITABLE GROWTH STRATEGY • Preserve strong liquidity and flexibility • Invest in organic growth: capacity expansion, market driven innovation & marketing directly to the homeowner • Maintain net leverage ratio of 1-2x • 1.0x leverage ratio
Slide 20: Full Year Fiscal Year 2022 Guidance
James Hardie Q1 FY22 Results FULL YEAR FISCAL YEAR 2022 GUIDANCE Management raises full year FY22 Adjusted Net Income1 to range of US$550 million and US$590 million (From US$520 million and US$570 million)3 North America Net Sales Growth 20+% growth versus FY21 Price/Mix +7% to +9% improvement versu
Slide 21: Questions
QUESTIONS
Slide 22: Appendix
APPENDIX
Slide 23: Driving a Higher Value Product Mix – Average Net Sales Price
James Hardie Q1 FY22 Results DRIVING A HIGHER VALUE PRODUCT MIX – AVERAGE NET SALES PRICE Page 23
Slide 24: General Corporate Costs and Research & Development
James Hardie Q1 FY22 Results GENERAL CORPORATE COSTS RESEARCH & DEVELOPMENT Research and Development (10) (8.4) US$ Millions (6.0) (5) Q1 EBIT 0 FY21 FY22 • Unfavorable movement in foreign • Customer Driven Innovation remains exchange gains and losses and core strategic pillar • Investment in growth
Slide 25: Liquidity Profile
James Hardie Q1 FY22 Results LIQUIDITY PROFILE Corporate debt structure • €400 million (US$476 million)2 3.625% senior unsecured notes, maturing 2026 (callable in October 2021) • US$400 million 5.00% senior unsecured notes maturing 2028 (callable in January 2023) 2 • US$500 million unsecured RCF, ma
Slide 26: Depreciation and Amortization
James Hardie Q1 FY22 Results DEPRECIATION AND AMORTIZATION US$ Millions Three Months Ended 30 June Q1 FY22 Q1 FY21 Depreciation and amortization North America Fiber Cement $ 26.4 $ 21.2 Asia Pacific Fiber Cement 3.6 2.8 Europe Building Products 7.6 6.1 Research and Development 0.3 0.3 General Corpor
Slide 27: Asbestos Claims Data
James Hardie Q1 FY22 Results ASBESTOS CLAIMS DATA Quarter ended 30 June 2021: • Net cash outflow was 26% below actuarial expectations • Gross cash outflow was 20% below actuarial expectations • Claims received were 6% below actuarial estimates and 13% below pcp • Number of claims settled were 35% be
Slide 28: Non-GAAP Financial Measures
James Hardie Q1 FY22 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 29: Non-GAAP Financial Measures
James Hardie Q1 FY22 Results NON-GAAP FINANCIAL MEASURES Adjusted EBIT and Adjusted EBITDA US$ Millions Three Months Ended 30 June Q1'22 Q1'21 Q1'20 EBIT $ 183.0 $ 49.8 $ 132.5 Asbestos: Asbestos adjustments (gain) loss (2.8) 63.7 (8.5) AICF SG&A expenses 0.3 0.3 0.4 Restructuring expenses - 11.1 -
Slide 30: Non-GAAP Financial Measures
James Hardie Q1 FY22 Results NON-GAAP FINANCIAL MEASURES Asia Pacific Fiber Cement Segment Adjusted EBIT and Adjusted EBITDA US$ Millions Three Months Ended 30 June Q1'22 Q1'21 Q1'20 Asia Pacific Fiber Cement Segment EBIT $ 38.8 $ 18.9 $ 24.8 Restructuring expenses - 3.4 - Asia Pacific Fiber Cement
Slide 31: Non-GAAP Financial Measures
James Hardie Q1 FY22 Results NON-GAAP FINANCIAL MEASURES Adjusted interest expense, net US$ Millions Three Months Ended 30 June Q1'22 Q1'21 Interest expense, net $ 10.1 $ 12.6 AICF interest income, net (0.1) (0.1) Adjusted interest expense, net $ 10.2 $ 12.7 Adjusted net income US$ Millions Three Mo
Slide 32: Non-GAAP Financial Measures
James Hardie Q1 FY22 Results NON-GAAP FINANCIAL MEASURES Adjusted effective tax rate US$ Millions Three Months Ended 30 June Q1 FY22 Q1 FY21 Income before income taxes $ 172.7 $ 37.4 Asbestos: Asbestos adjustments (gain) loss (2.8) 63.7 AICF SG&A expenses 0.3 0.3 AICF interest income, net (0.1) (0.1
Slide 33: Q1 FY22 Management Presentation
Q1 FY22 MANAGEMENT PRESENTATION 10 August 2021
James Hardie Industries — Q1 FY22 Earnings Presentation on 6ix