MARKET POSITION
SEAN GADD
EXECUTIVE VICE PRESIDENT, MARKETS AND SEGMENTS
SEPTEMBER 2017
Exhibit 99.9
PAGE
PAGE
Agenda
• Growth against the market index
• James Hardie segment approach
• Product thinking
2
PAGE
PAGE
Growth Above the Market Index
Market Growth
above our
Market Index
Market
Development
to convert vinyl
Growth against
natural wood
Defend against
lower-value
substitutes
OSB and
Hardboard
Competitive
Fiber Cement
3
Single Family
New Construction
Single Family
Repair & Remodel
Multi-Family
PAGE
PAGE
Become the Market Standard in the Wood-Look Market
Gain share against Vinyl and Wood while defending against lower value substitutes
Competitive Fiber
Cement, wood
and hardboard
Vinyl & Lower
Value
Substitutes
Vinyl
*Source: NAHB & JH internal analysis
PAGE
PAGE
Market Development Against Vinyl
• Value Proposition
– Curb, front porch and deck appeal
– Fire and abuse
– Low maintenance
– Affordable
• New construction segmentation, targeting and positioning (STP)
– Geography
– Category of home
– Builder profile - Better home, Better builder, Better development
– Risk profile
• Repair and remodel STP
– Geography
– Neighborhood
– Value proposition directly to the homeowner
• Colorplus® enabled by the preferred target customer channel
5
PAGE
PAGE
Sales Approach Against OSB and Hardboard
• Value Proposition
– James Hardie company support
– The full exterior
– Low maintenance
– Fire, rot, warp, termites
– Core colors
• Building company partnerships with all key stakeholders along the
value chain
6
PAGE
PAGE
Sales Approach Against Competitive Fiber Cement
• Value Proposition
– James Hardie invented fiber cement
– #1 brand
– Engineered for Climate ® positioning
– Superior technology around durability, density, coatings
– Manufacturing scale and platform advantage
– Diversified segment participation
– Representation and support
• Maintaining our category share by delivering value through the
supply chain to the homeowner
7
Segments
PAGE
PAGE
Primary demand growth - PDG
9
• Taking share against vinyl with ColorPlus® technology
• Market Development
– Significant cost difference
– Required to sell value
– Switching costs / barriers risks
On The Wall Cost
(OTWC)
JH
Material
JH Labor
Vinyl
Material
Vinyl
Labor
• New Dealer
• New Installer
• Different takeoffs/elevations
• Different phasing of trades
• New selling tools
PAGE
PAGE
New Construction Market Development
1. Establish position at top of the market aspirational product
2. Delivered to the right builder
3. “Shift left” to the next highest price band
4. Drive adoption
• Highly effective sales organization
• Full stakeholder engagement
• Comprehensive marketing strategy
5. Drive affordability through an efficient supply chain with ColorPlus® Technology
Must Win Must Win Faster
0%
20%
40%
60%
80%
100%
$100k to
$350k
$350k to
$450k
$450k to
$550k
$550k to
$700k
$700k to
$900k
$900k+
Product Penetration by Price Band
Vinyl JH Cedar
PAGE
PAGE
Repair and Remodel - Vinyl Standard Markets
• Drive awareness and preference for James Hardie products with ColorPlus® technology
in vinyl “battleground neighborhoods”
• Convert battlegrounds into “lock downs”
• Enable contractor growth in these key neighborhoods
• Reach homeowners through multiple touch points
• “Boat and Wake”
11
JH
Lock-
down
Vinyl
Battle-
ground
Vinyl
Battle-
ground
JH Lock-
down
PAGE
PAGE
Enhancing the “Wake”
12
Request for quote
Request for quote
Sold Job
Referrals Canvasing (Before and After)
Digital
(Website and Email)
Retail Direct Mail in
Targeted NeighborhoodsDoor Hangers /
Yard Signs
Request for
Information
Local Events
PAGE
PAGE
Partnering - Contractor Alliance Program
13
• First-time user acquisition
• Account development (YoY business growth)
• Enhanced value to promote loyalty
PAGE
PAGE
Defend against OSB Siding
• Win in all segments / all geographies
• Win with core colors
• Add non-product value programs
• Value chain engagement & alignment
Sales development approach
14
PAGE
PAGE
100% Hardie™
15
• Position the value of full wrap
• Engineered for Climate® positioning
• Service guarantee
PAGE
PAGE
SIDE Master – Installer Affiliation Program
• An affiliation platform launched in the Midwest in 2015 and now expanding
• Target installer SIDE Event Engagement Alignment
• Adjust SIDE based on needs by market
16
Business Building Bootcamp
Key Topic Breakout Sessions
Research & Development
Tour
N
et
w
o
rk
in
g
• Inclusive – Build a base, make it credible
• Gain installer alignment
• O e size fits all
• Value creation focus – relationship heavy,
work on developing rational value drivers
• Continue to provide rational drivers to all
installerMa
rke
t Pa
rtic
ipa
tion
Today Future
• Exclusive
• 2 Tier program based on alignment
• Provide differentiated value to installer
TM
TM
PAGE
PAGE
Defend against Competitive Fiber Cement
• Competitive fiber cement manufacturers take a ‘me-too’ approach and
compete on lower price against James Hardie products
• Leverage our advantages to prevent commoditization of the category
– #1 brand
– Differentiated products
– Manufacturing scale
– Diversified segment participation
– Representation and support
17
• For cost conscious buyers in
targeted segments, fighter
brands backed by James Hardie
protect our category share
Competitive
Fiber Cement
Color-
Plus®
Full Wrap Aspyre™
Fighter
Brands
Products
PAGE
PAGE
Product Strategy
19
Take a 3C, 4P approach - Deliver the optimal product, price, placement and promotion
for each segment in all geographies to deliver the long term market position for James
Hardie
PAGE
PAGE
ColorPlus® Technology
• Delivers a high quality, factory-controlled coating designed for our substrate
• Delivers a single-source, low-maintenance solution at reduced total cost
• Drives growth against vinyl
• Builds fences against close alternatives
20
PAGE
PAGE
ColorPlus® Technology
Key initiatives to drive growth
21
Continue demand
creation in metro
markets to make
ColorPlus® Technology
the standard.
Leverage installer
affiliation to
accelerate market
adoption
Deliver non-metro supply
chain solution to
increase market
opportunity
Next generation
manufacturing model &
non product value
enhancements
PAGE
PAGE
HardieTrim®
• Continue to sell and promote a complete exterior solution as the
ultimate low maintenance solution
• Continued growth through product line extensions, installer affiliation
programs and non-product value-add programs
22
PAGE
PAGE
Cemplank®
• Cemplank® serves as a fighter brand offering a low-cost solution to cost-conscious
buyers in target segments and aids category share
• Maintain James Hardie brand vs. fighter brand position through marketing mix and
differentiation with our channel partners
23
Market Led 24
The ASPYRE Collection from James Hardie
TM
PAGE
PAGE 25
PAGE
PAGE
The Aspyre Collection from James HardieTM
What is the Top of Market segment?
- Top 10% of homes by price band
- 400-500mmsf total opportunity, 250-300mmsf
wood-look
- Wood-Look opportunity dominated by cedar
Why enter the Top of the Market segment?
- Extend the fiber cement S-curve – pull up the
middle of the market
- Growth opportunity vs. wood
- Accretive price and profitability
- Competitive defense against new entrants
- Commitment to product leadership strategy
26
PAGE
PAGE
The Aspyre™ Collection from James Hardie™
How will we win the Top of the Market?
- Commitment to continuous product
innovation
- Embracing the architect as key influencer
- Selling tools fit for the customer
- Investing in centralized marketing to combat
fragmentation
- Aspyredesign.com
- Earned vs. Paid media
- Focus on digital & social content marketing
- Centrally run sales model
27
PAGE
PAGE
The Aspyre Collection from James Hardie™
What’s next?
- Launched on the West Coast in July 2017
- Capital investment made to support
national launch in FY19
- Generation 2 product design efforts
underway
28
PAGE
PAGE
Key Messages
• Become the market standard in the wood-look market
• Drive PDG through the right sales approach, right products and right
market programs
• Penetrate the Top of Market leveraging The Aspyre Collection from
James HardieTM
29