James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Day (September 2014)
28 slides from James Hardie Industries's investor day presentation, Sep 24, 2014
Slide 1: Slide 1
Slide 2: North Division – Sean Gadd, September 2014
NORTH DIVISION Sean Gadd 24 September 2014 Exhibit 99.3
Slide 3: Forward-looking statements
2 This Management 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 shareholders, in offering circulars, invitation memoranda
Slide 4: Forward-looking statements (continued)
3 Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are n
Slide 5: Agenda
4 North Division Overview North Strategy Sales Execution Update Market Moving Initiatives Summary AGENDA
Slide 6: North Division Overview
5 NORTH DIVISION OVERVIEW Market Dynamics 40 % of JH volume ~20% of wood-look products Wood-look at ~65% of market Quick Facts ~1060 employees 4 manufacturing facilities Predominately HZ5 volume Midwest Northeast Mountain Pacific Northwest Canada
Slide 7: North Strategy
6 Grow Fiber Cement share by substituting for both vinyl and wood based sidings and trims in the new construction and repair and remodel market segments (35) Maintain our Fiber Cement category position by delivering differentiated value to supply chain participants, right through to the home owner (
Slide 8: North Division Overview: Regions
7 5 regions Approach differs due to opportunity and competitor NORTH DIVISION OVERVIEW Vinyl and wood market shares are James Hardie internal estimates. Northwest Vinyl share 5% Wood share 30% Mountain Vinyl share 10% Wood share 35% Canada Vinyl share 50% Wood share 15% Midwest Vinyl share 40% Wood
Slide 9: Product Strategy
8 PRODUCT STRATEGY Northeast & Canada Midwest Mountain Pacific Northwest x x x x x x x Vinyl Vinyl & Wood Wood Fiber Cement MARKET STANDARD MARKET
Slide 10: James Hardie Value Proposition
9 JAMES HARDIE VALUE PROPOSITION James Hardie can deliver superior design to vinyl with a true wood look James Hardie can deliver superior durability and lower maintenance than real wood, hardboard/OSB exterior products
Slide 11: Slide 11
Slide 12: Segments
10 Single family new construction Market development Builders and developers Single family repair and remodel Hardie standard / vinyl standard neighborhoods Sold through the contractor Multifamily Developers and Architects Bid process SEGMENTS
Slide 13: Channel Strategy
11 Align with channel partners in a way that allows full market access and leverage their local service capabilities and customer relationships. Ensure that the supply chain is built and operates in a manner that enables participants to earn acceptable category returns CHANNEL STRATEGY
Slide 14: Manufacturing Strategy
12 Enable James Hardie’s product leadership Delivers James Hardie brand promise Ensure capacity is available during periods of peak demand Allows delivered unit cost to remain relatively flat in all market types MANUFACTURING STRATEGY
Slide 15: Manufacturing – Plant / Market Coverage
13 MANUFACTURING – PLANT / MARKET COVERAGE Plank, Panel, Backer, Trim, ColorPlus ® Products, Artisan ® and Artisan ® V-Groove Products Panel, Backer Plank, Panel Plank, Panel, Backer, NT3 ® Trim, ColorPlus ® Products Plank, Panel, Backer Heritage ® , soffit, ColorPlus ® Products, Mouldings
Slide 16: Organization / Leadership
14 Recruit Engage Develop Promote Evaluate ORGANIZATION / LEADERSHIP Driving an overall business capability Ability to move a market Executing at a high level with a single focus Depth and leadership Tenure and continuity
Slide 17: Sales Execution – Starts
15 New construction growth has slowed First 3 quarters of 2014:North starts up 1% versus 2013 Repair & Remodel up roughly 3% year over year SALES EXECUTION - STARTS Source: NAHB Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 E Q4 E FY 13 FY 13 FY 13 FY 13 FY 14 FY 14 FY 14 FY 14 FY 15 FY 15 FY 15 FY 15 Addressabl
Slide 18: Market Performance
16 MARKET PERFORMANCE FY11 YTD FY12 YTD FY13 YTD FY14YTD FY15YTD North Exterior Volume
Slide 19: Market Specific Initiatives
17 Ambassador program in repair and remodel segment 100% Hardie in single family new construction segment MARKET SPECIFIC INITIATIVES
Slide 20: Hardie Ambassador Program: Large Metros
18 HARDIE AMBASSADOR PROGRAM: LARGE METROS Invest early in a neighborhood Drive awareness and preference for James Hardie products in vinyl standard neighborhoods Reaching homeowners through multiple touch points
Slide 21: Ambassador Performance
19 AMBASSADOR PERFORMANCE Chicago DC/Baltimore Boston New Jersey % Growth - Year Before Ambassador Program to Now
Slide 22: 100% Hardie: Minneapolis Program Promise
PROGRAM PROMISE INFLUENCE CHOICE 20 100% HARDIE: MINNEAPOLIS CHOOSE 100% Hardie LIVE 100% Hardie BUILD 100% Hardie Differentiate James Hardie brand and create value for both builders and homeowners Extend and deepen relationship with brand
Slide 23: Hardie Program: Minneapolis
21 100% HARDIE PROGRAM: MINNEAPOLIS Single family new construction target Responds to Hardboard/OSB positioning of; looks like James Hardie but costs less Creates and builds additional value at the builder level, and ultimately for the homeowner, to offset Hardboard/OSB siding discounts
Slide 24: 100% Hardie: Minneapolis
22 100% HARDIE: MINNEAPOLIS 100% Hardie Components 100% Hardie Positioning Color palette reset Marketing campaign Siding Solution Center
Slide 25: Siding Solution Center: Minneapolis
23 SIDING SOLUTION CENTER: MINNEAPOLIS Increase the quality of installation in the market Increase the supply of qualified labor to install James Hardie in the new construction segment Responds to the ease of install perception of Hardboard/OSB that some builders value, especially in a recovery mark
Slide 26: Performance of 100% Hardie: Minneapolis
24 PERFORMANCE OF 100% HARDIE: MINNEAPOLIS May June July August Builder Adoption of the Program
Slide 27: Summary
25 Growth will come through substituting both vinyl and wood based sidings and trims Market development against vinyl Defend and grow against wood based exterior products through; enhanced sales programs, more effective product positioning improved channel alignment. We are growing share in repair &
Slide 28: Questions
QUESTIONS
James Hardie Industries — Investor Day (September 2014) on 6ix