James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q4 FY24 Earnings Presentation
33 slides from James Hardie Industries's earnings presentation, May 21, 2024
Slide 1: Q4 FY24 Management Presentation
Q4 FY24 Management Presentation 2 1 M AY 2024
Slide 2: Cautionary Note on Forward-Looking Statements
JAMES HARDIE Q4 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 Q4 FY24 RESULTS AGENDA • Strategy and Operations • Financial Results Aaron Erter CEO • Outlook and Guidance • Q&A Rachel Wilson CFO Page 3
Slide 4: Strategy and Operations
Strategy and Operations 2 1 M AY 2024
Slide 5: CEO Update: Outperforming the Markets in Which We Participate
JAMES HARDIE Q4 FY24 RESULTS CEO UPDATE: OUTPERFORMING THE MARKETS IN WHICH WE PARTICIPATE Operational Focus… …Delivered Strong FY24 Results Continue Strong Execution of • Record Global Net Sales of US$3,936 Our Strategy Million +4% vs pcp • Record Global Adjusted Net Income of US$708 Million up 1
Slide 6: Global Strategic Framework
JAMES HARDIE Q4 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 solut
Slide 7: 11+ Million Homes and Counting
JAMES HARDIE Q4 FY24 RESULTS 11+ MILLION HOMES AND COUNTING 12 11 • 45 billion standard feet of product since 2000 • 28 billion standard feet of exterior siding, 10 equivalent coverage for 11+ million homes1 Millions of Homes (Cumulative) 8 • Material conversion and demand creation driven by our sup
Slide 8: Hardie: A Virtuous Cycle to Deliver Long Term Value Creation
JAMES HARDIE Q4 FY24 RESULTS HARDIE: A VIRTUOUS CYCLE TO DELIVER LONG TERM VALUE CREATION Profitable Share Gain Over The Create Demand Across The Long-Term Customer Value Chain 24 +7% 23% Est. Share Share Gain 2022 Homeowner Focused, Customer and Contractor Driven™ 23 ‘12 – ‘22 22 21 Customer Builde
Slide 9: Financial Results
Financial Results 2 1 M AY 2024
Slide 10: Global Results – Q4 FY24
JAMES HARDIE Q4 FY24 RESULTS GLOBAL RESULTS – Q4 FY24 Global Global Adjusted Global Full Year Operating Net Sales Net Income Adj. EBITDA% Cash Flow $1.0Bn $174.2M 27.9% $914.2M +9%1 +19%1 +250bps1 +50%1 Record Quarterly Global Net Sales & Full Year Operating Cash Flow Page 10 1. All changes presente
Slide 11: Global Adjusted Net Income
JAMES HARDIE Q4 FY24 RESULTS GLOBAL ADJUSTED NET INCOME Key Controllables Adjusted Net Income of $174.2 million increased $28.0 million versus the prior corresponding period • North America, APAC, and Europe EBIT US$ Millions growth contributed $39.3 million • SG&A increased 24% to $164.2 million, p
Slide 12: North America Summary
JAMES HARDIE Q4 FY24 RESULTS NORTH AMERICA SUMMARY Q4 FY24 FY24 Q4 Net Sales of US$735.2 Million 766.3 mmsf 3,053.8 mmsf Sales Volume • Volume up 9%; supported by single family new construction +9% +1% with South-Central & West as the best performing regions. US$954 /msf US$941 /msf Average Net Sale
Slide 13: APAC Summary
JAMES HARDIE Q4 FY24 RESULTS APAC SUMMARY Q4 FY24 FY24 Q4 Net Sales of A$215.2 Million 139.7 mmsf 553.7 mmsf Sales Volume • Average Net Sales Price up 9% -4% -4% A$1,380 /msf A$1,381 /msf • Volume down 4%; the best performing region was New Zealand Average Net Sales Price which was up year over year
Slide 14: Europe Summary
JAMES HARDIE Q4 FY24 RESULTS EUROPE SUMMARY Q4 FY24 FY24 Q4 Net Sales of €118.0 Million 192.7 mmsf 734.4 mmsf Sales Volume • Average Net Sales Price up 5% -9% -13% €473 /msf €480 /msf • Volume down 9%, driven by reduced market activity in Fiber Average Net Sales Price Gypsum. High Value Products up
Slide 15: Liquidity, Cash Flow, Capital Allocation & Capital Expenditure
JAMES HARDIE Q4 FY24 RESULTS LIQUIDITY, CASH FLOW, CAPITAL ALLOCATION & CAPITAL EXPENDITURE Cash Flow Capital Allocation • FY24 Operating Cash Flow of $914.2 million up Framework 50% vs pcp • Invest in Organic Growth • Maintain Flexible Balance Sheet • FY24 Working Capital improved by $31.1 million
Slide 16: HOS Progress
JAMES HARDIE Q4 FY24 RESULTS HOS PROGRESS JAMES HARDIE Q2 FY24 RESULTS HARDIE OPERATING SYSTEM (HOS) HOS: How Work Gets Done Progress in FY24 HMOS HMOS Realised $31M in $100M Expected Cumulative Global Savings in Manufacturing FY24-FY261 HMOS Savings Enterprise Management System Procurement Saving
Slide 17: Global Capacity Update
JAMES HARDIE Q4 FY24 RESULTS GLOBAL CAPACITY UPDATE Europe - Orejo Brownfield adding 252 mmsf to bring total nameplate capacity to 527 mmsf - Land purchased in FY2024 for a future Fiber Cement Greenfield site in Europe North America - Prattville Sheet machine 3 on track for commissioning in Q1 FY25
Slide 18: Outlook and Guidance
Outlook and Guidance 2 1 M AY 2024
Slide 19: CY24 Market Outlook: North America
JAMES HARDIE Q4 FY24 RESULTS CY24 MARKET OUTLOOK: NORTH AMERICA1 Change in Average from Feb Results External Range US Single Family New Construction +2% to +13% Calendar 2024 Growth Outlook2 +2% Average: +7% External Range US Multi Family New Construction -32% to -5% Calendar 2024 Growth Outlook3 Un
Slide 20: North America – FY25 Quarterly Volume Sensitivity
JAMES HARDIE Q4 FY24 RESULTS NORTH AMERICA – FY25 QUARTERLY VOLUME SENSITIVITY Quarterly Volume Scenarios 650 750 850+ mmsf mmsf mmsf Estimated Quarterly EBIT Margin (%) <28% 30 – 32% 32+% Given the uncertain nature of the US housing market, we have modeled our expected quarterly EBIT margin outcome
Slide 21: Guidance: Q1 Fiscal Year 2025
JAMES HARDIE Q4 FY24 RESULTS GUIDANCE: Q1 FISCAL YEAR 2025 North America Volume 745 – 775 million standard feet North America EBIT Margin 30% - 32% Adjusted Net Income US$ 155 – 175 million Driving Profitable Share Gain Page 21
Slide 22: Guidance: Fiscal Year 2025
JAMES HARDIE Q4 FY24 RESULTS GUIDANCE: FISCAL YEAR 2025 North America Volume 2,950 – 3,150 million standard feet North America EBIT Margin 29% - 31% Adjusted Net Income US$ 630 – 700 million Customer Continued Strong Investing Demand Creation Partnerships PDG in NA for Growth Page 22
Slide 23: James Hardie – A Global Growth Company
JAMES HARDIE Q4 FY24 RESULTS JAMES HARDIE – A GLOBAL GROWTH COMPANY Responsible Corporate Citizenship Experienced Management Team Demand Creation Strong Cash Generation & Balance Sheet Brand of Choice Attractive Returns Innovative Solutions Premium Products and Services Localized Manufacturing Hardi
Slide 24: Questions
Questions 2 1 M AY 2024
Slide 25: Appendix
Appendix 2 1 M AY 2024
Slide 26: Non-GAAP Financial Measures
JAMES HARDIE Q4 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 Consolida
Slide 27: Asbestos Compensation
JAMES HARDIE Q4 FY24 RESULTS ASBESTOS COMPENSATION KEY POINTS 1 • Updated actuarial report completed as of 31 March 2024 • Undiscounted and uninflated estimate increased from A$1,335 million to A$1,394 million • For fiscal year 2024, we noted the following related to asbestos-related claims experien
Slide 28: Asbestos Claims Data, Liability and Cash Movements
JAMES HARDIE Q4 FY24 RESULTS ASBESTOS CLAIMS DATA, LIABILITY AND CASH MOVEMENTS Net Post-Tax Unfunded Liability 750 612.9 534.5 500 399.0 358.7 250 0 FY24 FY23 A$ Million US$ Million AICF Cash and Investments – 31 March 2024 (A$ Millions) 344.4 364.7 31 Mar 2024 31 Mar 2023 1 Average claim settlemen
Slide 29: Non-GAAP Financial Measures
JAMES HARDIE Q4 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted EBIT and Adjusted EBITDA US$ Millions Quarter and Full Year Ended 31 March Q4 FY24 Q4 FY23 FY24 FY23 EBIT $ 84.0 $ 130.6 $ 767.4 $ 741.4 Asbestos: Asbestos adjustments loss 148.0 56.5 151.7 37.0 AICF SG&A expenses 0.5 0.4 1.6 1.4 Asse
Slide 30: Non-GAAP Financial Measures
JAMES HARDIE Q4 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Asia Pacific Fiber Cement Segment EBIT and EBITDA US$ Millions Quarter and Full Year Ended 31 March Q4 FY24 Q4 FY23 FY24 FY23 Asia Pacific Fiber Cement Segment EBIT $ 38.5 $ 40.3 $ 166.1 $ 142.8 Asia Pacific Fiber Cement Segment net sales 141.
Slide 31: Non-GAAP Financial Measures
JAMES HARDIE Q4 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted interest, net US$ Millions Quarter and Full Year Ended 31 March Q4 FY24 Q4 FY23 FY24 FY23 Interest, net $ 1.9 $ 6.7 $ 15.3 $ 30.7 AICF interest income, net (2.3) (1.7) (9.0) (4.2) Adjusted interest, net $ 4.2 $ 8.4 $ 24.3 $ 34.9 Adjus
Slide 32: Non-GAAP Financial Measures
JAMES HARDIE Q4 FY24 RESULTS NON-GAAP FINANCIAL MEASURES Adjusted diluted earnings per share Quarter and Full Year Ended 31 March Q4 FY24 Q4 FY23 FY24 FY23 Adjusted net income (US$ Millions) $ 174.2 $ 146.2 $ 707.5 $ 605.5 Weighted average common shares outstanding - 436.4 444.5 439.6 445.6 Diluted
Slide 33: Q4 FY24 Management Presentation
Q4 FY24 Management Presentation 2 1 M AY 2024
James Hardie Industries — Q4 FY24 Earnings Presentation on 6ix