James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Investor Presentation (July 2017)
29 slides from James Hardie Industries's investor presentation, Jul 20, 2017
Slide 1: Sydney Analyst and Investor Tour
For personal use only SYDNEY ANALYST AND INVESTOR TOUR 20 July 2017
Slide 2: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS For personal use only This Management Presentation contains forward-looking statements. James Hardie Industries plc (the “company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities an
Slide 3: Cautionary Note on Forward-Looking Statements (continued)
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS (continued) For personal use only Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and sim
Slide 4: Note to the Reader
NOTE TO THE READER For personal use only As of 30 June 2016, the Company changed its reportable operating segments. Previously, the Company reported on three operating segments: (i) North America and Europe Fiber Cement, (ii) Asia Pacific Fiber Cement, and (iii) Research and Development. As of 30 Ju
Slide 5: Use of Non-GAAP Financial Information; Australian Equivalent Terminology
USE OF NON-GAAP FINANCIAL INFORMATION; AUSTRALIAN EQUIVALENT TERMINOLOGY For personal use only This Management Presentation includes financial measures that are not considered a measure of financial performance under generally accepted accounting principles in the United States (US GAAP). These fina
Slide 6: Agenda
Agenda For personal use only • James Hardie – Australian context • Australian market overview • Our Focus • Our Performance • Our Growth Investment PAGE 6
Slide 7: James Hardie – a growth business in a mature market
James Hardie – a growth business in a mature market For personal use only An unwavering focus on the health and safety of our people. A long standing commitment to and track record of market valued innovation. A unique market development model, transforming the Australian way to build. A commitment
Slide 8: The Australian business in context – FY17
The Australian business in context – FY17 For personal use only PAGE 8 2 EBIT excludes asbestos, asset impairments, ASIC expenses, non-recurring stamp duty and/or New Zealand weathertightness claims. 3 Sales volume excludes Australian Pipes business sold in the first quarter of fiscal year 2016
Slide 9: We provide products for all major segments in the building market
We provide products for all major segments in the building market For personal use only Home Improvement Detached Semi-detached Low-rise Mid-rise Mixed Commercial 10 year volume CAGR 4%. 10 year revenue CAGR 7%. PAGE 9
Slide 10: We have wide channel distribution enabling us to serve all end user building segments
We have wide channel distribution enabling us to serve all end user building segments… For personal use only The Australian Fibre Cement Market Home Commercial improvement builders specialists and DIY Suppliers & key players Channel End user segments Small- Volume medium builders builders others Med
Slide 11: A product portfolio that delivers growth through the market cycle
… with a product portfolio that delivers growth through the market cycle… For personal use only Adoption / Penetration Ceilings Rate and Walls, Linings facades and floors MATURITY Decking GROWTH and fire walls EMERGING Life Cycle Progression Products in all market lifecycles PAGE 11
Slide 12: Transforming Australian ceilings and linings
…and transforming Australian ceilings and linings For personal use only HardieGroove™ lining Villaboard® lining ARChitectural™ InRaw™ panel Versilux® lining PAGE 12
Slide 13: Transforming Australian facades
…transforming Australian facades… For personal use only ExoTec™ cladding – durable, low-maintenance, impact resistant, and deemed non-combustible PAGE 13
Slide 14: Transforming Australian walls
…transforming Australian walls… For personal use only Linea™ weatherboards Stria™ cladding Axon™ cladding Matrix™ cladding PAGE 14
Slide 15: Transforming floors
…transforming floors… For personal use only Scyon™ Secura™ interior flooring Scyon™ Secura™ interior flooring PAGE 15
Slide 16: Transforming Australian decking
…transforming Australian decking… For personal use only HardieDeck™ decking PAGE 16
Slide 17: We are near the cyclical market peak
We are near the cyclical market peak… For personal use only FY17 relative to FY16 (YOY change) addressable market Segment National Eastern seaboard Rest of country Detached residential +1% starts +8% starts -17% starts Medium density residential +17% starts +23% starts +6% starts High density reside
Slide 18: Coupled with structural changes in the market
… coupled with structural changes in the market… For personal use only Apartment living: • changed consumer preference, • trade of place vs space, and • proximity to employment. Source: ABS Smaller lot housing: • response to affordability issues. Source: UDIA PAGE 18
Slide 19: Impacting the demand for building products
… which are impacting the demand for building products For personal use only A change in construction starts… …impacts addressable external wall area 250,000 +7% Insights 200,000 Over the past decade, Adressable External Cladding Area • 58,697 detached housing starts have increased 2%, whereas Numbe
Slide 20: Our unique demand generation model is key to growth
In response, our unique demand generation model is key to growth… For personal use only James Hardie go to market Differentiated Increased Targeting the right Engaging in the Growth focused Sustainable products and on-the-wall segments path to purchase tools growth systems coverage • Evolving demand
Slide 21: Bolstered by our investment in our customers
…bolstered by our investment in our customers For personal use only • Customer Insights – industry leading understanding of the human factors driving the Australian built environment. • Customer Excellence – creating a market led culture. • Sales process excellence – transforming how we create value
Slide 22: Differentiated product and system innovation enable growth
Differentiated product and system innovation enable growth For personal use only 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • Track record of industry Linea™ Scyon™ leading product and systems Axon™ Stria™ innovation. Matrix™ Axent™ Trim Secura™ Exterior • Delivered through a Secura
Slide 23: HardieSmart 2.0 – a recent launch
HardieSmart™ 2.0 – a recent launch For personal use only • Launched 2016/17. • Next generation wall solutions for fire, acoustic, thermal and bracing applications. • Fibre cement boards, insulation and accessories. HardieSmart™ sales run-rate up 30% since 2.0 launch PAGE 23
Slide 24: Structural walling – a recent bolt-on M&A
Structural walling – a recent bolt-on M&A For personal use only • Ritek® wall systems – acquired in February 2017, now part of James Hardie Systems. • Permanent formwork walling system for medium and high density construction, using fibre cement skin and proprietary core. • Proven solution that deli
Slide 25: Local manufacturing is a cornerstone of our ability to provide the right products
Local manufacturing is a cornerstone of our ability to provide the RIGHT products to transform the way Australians build For personal use only • Local manufacturing focused on meeting our market needs • Responsive to demand – capacity and range • Focused on investing where we can create value PAGE 2
Slide 26: Our manufacturing strategy aligns with our market objectives
Our manufacturing strategy aligns with our market objectives For personal use only Organisational Capability Develop organisation capability to enable Safety First People Hardie Advantage execution Deliver on Brand Asset Utilization Ongoing Pursuit of Promise Lowest Cost No compromise on Maximise Av
Slide 27: Invested in capacity to meet the market needs
Invested in capacity to meet the market needs For personal use only • Recent phased capital investment of A$89M in our facility at Carole Park, Queensland. • Increasing capacity to align with market demand. • In full operational phase - delivering incremental capacity to fulfil our primary demand gr
Slide 28: James Hardie – a growth business in a mature market
James Hardie – a growth business in a mature market For personal use only An unwavering focus on the health and safety of our people. A long standing commitment to and track record of market valued innovation. A unique market development model, transforming the Australian way to build. A commitment
Slide 29: Questions
For personal use only QUESTIONS
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