James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (November 2012)
36 slides from James Hardie Industries's investor presentation, Nov 28, 2012
Slide 1: Investor Presentation November 2012
INVESTOR PRESENTATION November 2012 Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER 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
Slide 3: Agenda
AGENDA Business overview USA and Europe Fibre Cement Asia Pacific Fibre Cement Group Outlook Summary Appendix In this Management Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financial measures included in the Definitions section of
Slide 4: JHX: A Growth Focused Company
Annual net sales US$1.2b Total assets US$1.7b Net cash US$265.4m Operations in North America, Asia Pacific and Europe 2,600 employees Market cap US$3.9b S&P/ASX 100 company NYSE ADR listing Note: Net sales, total assets and net cash are at March 2012. Total assets exclude asbestos compensation. JHX:
Slide 5: Group Overview
GROUP OVERVIEW • For the half year, net operating profit excluding asbestos, ASIC expenses and tax adjustments decreased 2% to US$78.6 million • Half year operating results reflect a recovery of US$2.7 million for legal costs associated with the conclusion of RCI’s disputed amended tax assessment wi
Slide 6: JHX: A World Leader in Fibre Cement
USA Fibre Cement Products Siding Soffit Fascia Trim Backerboard Asia Pacific Fibre Cement Products Residential siding Commercial exteriors Flooring Ceiling and internal walls JHX: A WORLD LEADER IN FIBRE CEMENT
Slide 7: Global Business Portfolio
77% 67% 33% 23% 70% 30% All numbers are for Half Year ended 30 September 2012 * EBIT – Excludes Research and Development EBIT and Asbestos-related items USA and Europe Fibre Cement Asia-Pacific Fibre Cement Volume Sales EBIT* GLOBAL – BUSINESS PORTFOLIO
Slide 8: Fibre Cement: Superior Product Performance
Fibre cement is more durable than wood and engineered wood, and looks and performs better than vinyl, and cheaper and quicker to build with than brick Fire resistant Hail resistant Resists warping Resists buckling Colour lasts longer Dimensional stability Can be repainted Engineered wood ? ? ? ? ? ?
Slide 9: Product Leadership Example: HardieZone System
th Generation versus 2 nd Generation generic fibre cement The HardieZone™ System represents a logical extension of Hardie technology PRODUCT LEADERSHIP EXAMPLE – HARDIEZONE™ SYSTEM
Slide 10: The USA Business: Largest Fibre Cement Producer in North America
Plant locations Production was suspended at the Blandon plant in October 2007; at the Summerville plant in November 2008; and at the Fontana plant in December • Tacoma, WA Plant City, FL Waxahachie, TX Cleburne, TX Peru, IL Blandon, PA Summerville, SC Pulaski, VA • Reno, NV • Fontana, CA JH Plant De
Slide 11: US Exterior Cladding Market
Note: 1) Market share figures reflect siding only; exclude fascia, soffits & trim; data reflects Repair & Remodel and New Construction markets, combined. 2) Siding volumes exclude waste factors, a change from previously reported numbers. Sources: NAHB Builder Practices and Consumer Practices Report
Slide 12: USA Fibre Cement: Top Line Growth
Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau USA FIBRE CEMENT '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Top Line Growth JH Volume Housing Starts JH Revenue
Slide 13: USA and Europe Fibre Cement EBIT and EBIT Margin
Excludes impairment charges of US$45.6 million in Q4 FY08 and US$14.3 million in Q4 FY12 EBIT and EBIT Margin EBIT EBIT Margin USA AND EUROPE FIBRE CEMENT FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Slide 14: USA and Europe Fibre Cement Average Net Sales Price
USA AND EUROPE FIBRE CEMENT Average Net Sales Price (US dollars) US$647 FY13 average net sales price represents nd quarter year-to-date; other years presented are for the full year FY07 FY08 FY09 FY10 FY11 FY12 Q2 YTD FY13
Slide 15: U.S. Housing Starts
600 (Thousands of starts) Source: US Census Bueau- Now Pistly- Owned Housing its Stated U.S. Housing Starts Calendar Quarters TSHousing stats —-%Grovth (same GHPY)
Slide 16: Asia Pacific Fibre Cement
Five manufacturing plants in Asia Pacific Net sales US$376m EBIT US$80m Higher value differentiated products Lower delivered cost Growth model Asia Pacific manufacturing facilities. Net Sales and EBIT as at March 2012. ASIA PACIFIC FIBRE CEMENT
Slide 17: Asia Pacific Fibre Cement Examples
General purpose flooring Exterior cladding Philippines New Zealand Australia Ceilings and partitions Interior walls Australia ASIA PACIFIC FIBRE CEMENT - EXAMPLES
Slide 18: Capital Management
The company expects to be in a position to make further distributions to shareholders in the near term as follows: An ordinary dividend of US5.0 cents per security (approximately US$22.0 million) was announced on 15 November 2012. The dividend is declared in US currency and will be paid on 25 Januar
Slide 19: Group Outlook
GROUP OUTLOOK United States Industry data indicates consistent improvement in builder confidence and increased activity in US housing market The early stages of a recovery in the residential market appears to be underway The extent and rate of improvement, however, is uncertain The business is being
Slide 20: Summary
We have a strong, well-established, growth-focused, strong cash-generating and high return business We have a sustainable competitive advantage Our model for strong growth is based on: – Large market opportunity – Superior value proposition – Proprietary and/or protected technology – Ongoing commitm
Slide 21: Appendix
APPENDIX
Slide 22: Global Strategy
Aggressively grow demand for our products in targeted market segments Grow our overall market position while defending our share in existing market segments Introduce differentiated products to deliver a sustainable competitive advantage Industry leadership and profitable growth GLOBAL STRATEGY
Slide 23: Key Ratios
Note: For the 2012 and 2011 financial years, key ratios at the half year ended have been presented above for comparative purposes KEY RATIOS HY '13 HY '12 HY '11 EPS (Diluted) 17.9c 18.3c 14.0c EBIT/ Sales (EBIT margin) 15.4% 17.7% 17.7% Gearing Ratio -6.4% 2.7% 10.6% Net Interest Expense Cover 51.8
Slide 24: USA and Europe 5 Year Results Overview
FY07 FY08 FY09 FY10 FY11 FY12 Net Sales US$m 1,262 1,144 Sales Volume mmsf 2,148 1,916 1,508 1,303 1,248 1,332 Average Price US$ per msf EBIT US$m EBIT Margin % USA AND EUROPE 5 YEAR RESULTS OVERVIEW
Slide 25: Asia Pacific 5 Year Results Overview
FY07 FY08 FY09 FY10 FY11 FY12 Net Sales US$m Sales Volume mmsf Average Price US$ per msf EBIT US$m EBIT Margin % ASIA PACIFIC 5 YEAR RESULTS OVERVIEW
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Slide 27: Results – Half Year
RESULTS – Half Year US$ Millions HY '13 HY '12 % Change Net sales 674.1 645.2 Gross profit 221.3 220.8 - SG&A expenses (100.9) (94.1) (7) Research & Development expenses (17.9) (14.3) (25) Asbestos adjustments 2.8 48.7 (94) EBIT 105.3 161.1 (35) Net interest income (expense) 0.2 (2.2) - Other income
Slide 28: Definitions
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 Consolidated Financial Statements Definitions Non-financial Terms
Slide 29: Endnotes (continued)
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 foot is defined as a standard square foot of 5/16” thickness Financial Ratios Gearing Ratio – Net debt (cash) divided by net debt (cash) pl
Slide 30: Non-US GAAP Financial Measures
EBIT and EBIT margin excluding asbestos and ASIC expenses – EBIT and EBIT margin excluding asbestos and ASIC expenses are not measures of financial performance under US GAAP and should not be considered to be more meaningful than EBIT and EBIT margin. Management has included these financial measures
Slide 31: Non-US GAAP Financial Measures (continued)
Net operating profit excluding asbestos, ASIC expenses and tax adjustments – Net operating profit excluding asbestos, ASIC expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than net income. Management has included
Slide 32: Non-US GAAP Financial Measures (continued)
Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments – Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than diluted earnings per sha
Slide 33: Non-US GAAP Financial Measures (continued)
Effective tax rate excluding asbestos and tax adjustments – Effective tax rate excluding asbestos and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than effective tax rate. Management has included this financial measure to
Slide 34: Non-US GAAP Financial Measures (continued)
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 GAAP or as a measure of profitability or liquidity. Not all companies calculate EBITDA in the sa
Slide 35: Non-US GAAP Financial Measures (continued)
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 of RCI legal costs is not a measure of financial performance under US GAAP and should
Slide 36: INVESTOR
INVESTOR PRESENTATION November 2012
James Hardie Industries — Investor Presentation (November 2012) on 6ix