James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Shareholder Meeting (August 2007)
23 slides from James Hardie Industries's shareholder meeting presentation, Aug 15, 2007
Slide 1: Australian Information Meeting
For personal use only Australian Information Meeting Louis Gries, CEO 15 August 2007 Text goes here Agenda Presentation Outline FY07 Results Overview Q1 FY08 Results Overview – released today Organisational Focus Corporate Issues and Challenges Summary 2
Slide 2: FY07 Results Overview - Very solid net operating profit
Text goes here Agenda FY07 – Results Overview For personal use only 3 Text goes here Agenda FY07 – Results Overview Very solid net operating profit Very solid net operating profit excluding asbestos adjustments, particularly given weaker markets in the US, Australia and New Zealand % US$ Million F
Slide 3: FY07 Operating performance; USA Fibre Cement
Text goes here Agenda For personal use only FY07 – Results Overview Operating performance USA Fibre Cement – strong operating performance with both sales and EBIT up in a significantly weaker US housing market, especially in the 2nd half Asia Pacific Fibre Cement – sales up, but EBIT lower due t
Slide 4: USA Fibre Cement - Key Points and Business Re-set
Text goes here Agenda For personal use only FY07 – Results Overview USA Fibre Cement – Key Points Housing market weakened significantly, particularly in 2nd half Sales of exterior products affected most by weaker market Healthy repair and remodel market helped buoy sales of interior products
Slide 5: USA Fibre Cement revenue per employee; Asia Pacific results
Text goes here Agenda For personal use only FY07 – Results Overview USA Fibre Cement – growing revenue per employee $570 $552 $495 $413 $381 US$ thousands $367 $354 $329 $326 $298 $251 $250 $166 $153 $115 $48 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07avg. Revenue
Slide 6: Hardie Pipe, Europe and Long-Term Targets
Text goes here Agenda For personal use only FY07 – Results Overview USA Hardie Pipe Net sales higher due to increased sales volumes and higher average sales price EBIT positive Europe Fibre Cement Sales continuing to grow steadily 11 Text goes here Agenda FY07 – Results Overview Long-Term Targ
Slide 7: 1st Quarter Results FY08 - Overview
Text goes here Agenda 1st Quarter Results FY08 – Overview For personal use only 13 Text goes here Agenda Q1 FY08 – Results Overview Strong operating performance despite further weakness in major markets Net operating profit affected by asbestos (mostly related to stronger A$) Q1 Q1 % US$ Million
Slide 8: Q1 FY08 Strong operating performance; USA Fibre Cement
Text goes here Agenda For personal use only Q1 FY08 – Results Overview Strong operating performance USA Fibre Cement – improved market penetration, price growth and cost management helped deliver a very strong EBIT result despite further weakness in US housing Asia Pacific Fibre Cement – both sa
Slide 9: USA Fibre Cement - Market Conditions and Key Points
Text goes here Agenda For personal use only Q1 FY08 – Results Overview USA Fibre Cement - Market Conditions Further weakness in new housing construction activity Starts down 22% and 31% for June and March quarters, respectively Market demand affected by affordability issues: Higher interest
Slide 10: Top Line Growth; Average Net Selling Price
Text goes here Agenda For personal use only Q1 FY08 – Results Overview Top Line Growth 3,000 JH Volume (mmsf), Starts (000's Units) $1,300 2,600 $1,100 2,200 Revenue (USDM) $900 1,800 $700 1,400 $500 1,000 $300 600 200 $100 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 JH Volume JH Revenue H
Slide 11: EBIT and EBIT Margin; Asia Pacific Fibre Cement
Text goes here Agenda For personal use only Q1 FY08 – Results Overview EBIT and EBIT Margin* 140 35 120 30 EBIT MARGIN % 100 25 EBIT US$M 80 20 60 15 40 10 20 5 0 0 FY02 FY03 FY04 FY05 FY06 FY07 Q1 FY08 EBIT EBIT/Sales *Excludes restructuring and other operating expenses of US$12.6 million in Q3 FY0
Slide 12: Asia Pacific Key Points; Share Buy-back Announced
Text goes here Agenda For personal use only Q1 FY08 – Results Overview Asia Pacific Fibre Cement - Key Points Further weakness in new housing and renovations activity in Australia, flat in New Zealand and slightly stronger construction activity in the Philippines Net sales up 8% in A$; volumes u
Slide 13: Organisational Focus - USA Fibre Cement
Text goes here Agenda For personal use only Organisational Focus 25 Text goes here Agenda Organisational Focus USA Fibre Cement Aggressively grow demand for our products in our targeted markets Grow our overall market position and share in existing markets while defending share in existing marke
Slide 14: USA Fibre Cement - Future Growth and Market Penetration
Text goes here Agenda For personal use only Organisational Focus USA Fibre Cement – Future Growth Job 1 Deliver terminal share in current USA Fibre Cement business Job 2 Extend the current business model in the US (eg new products, new markets) Job 3 Bolt-on acquisition opportunity in th
Slide 15: Asia Pacific Fibre Cement; Product Leadership
Text goes here Agenda For personal use only Organisational Focus Asia Pacific Fibre Cement Grow primary demand for our products Leverage our superior technology to offer differentiated products and systems with superior value to those of competitors Promote a smarter way to build composite con
Slide 16: Product Leadership - examples
Text goes here Agenda For personal use only Organisational Focus Product Leadership - examples USA Fibre Cement: ColorPlus® Collection (pre-painted siding and trim): Driving growth against vinyl in Northern Division Launched in Western and Southern Divisions FY07 31 Text goes here Agenda Organ
Slide 17: Product Leadership - Scyon; US Product Mix
Text goes here Agenda For personal use only Organisational Focus Product Leadership – examples Asia Pacific Fibre Cement ScyonTM range of value-added, differentiated products launched 2007 ScyonTM Trim and ScyonTM LineaTM weatherboards ScyonTM wet area ScyonTM Matrix flooring cladding 33 Text goes
Slide 18: Corporate Issues and Challenges
Text goes here Agenda For personal use only Corporate Issues and Challenges 35 Text goes here Agenda Corporate Issues and Challenges The company continues to focus on the effective management of a number of corporate matters, including: Ongoing compliance with Amended Final Funding Agreement (rece
Slide 19: Summary; Disclaimer
Text goes here Agenda For personal use only Summary Our operations have performed very well despite weaker housing markets The short-term outlook is for some further housing market weakness in the US and Australia In the US, we remain focussed on continuing to outperform the market overall and
Slide 20: Endnotes and Definitions
Text goes here Agenda For personal use only Endnotes 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 Management’s Analysis of Results, a Media Release and a Financial Rep
Slide 21: Non-US GAAP Financial Measures (continued)
Text goes here Agenda For personal use only Non-US GAAP Financial Measures (continued) EBIT and EBIT margin excluding asbestos – EBIT and EBIT margin excluding asbestos are not measures of financial performance under US GAAP and should not be considered to be more meaningful than EBIT and EBIT margi
Slide 22: Non-US GAAP Financial Measures - Diluted EPS excluding asbestos
Text goes here Agenda For personal use only Non-US GAAP Financial Measures (continued) Diluted earnings per share excluding asbestos – Diluted earnings per share excluding asbestos is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than diluted
Slide 23: Non-US GAAP Financial Measures - Net operating profit reconciliation
Text goes here Agenda For personal use only Non-US GAAP Financial Measures (continued) Net operating profit excluding asbestos adjustments, tax benefit related to asbestos adjustments, impairment charge, SCI and other related expenses, make-whole payment and tax provision write-back– Net operating p
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