JAMES HARDIE
INVESTOR UPDATE
Louis Gries
Exhibit 99.2
PAGE 2
AGENDA
• NA FC Organic Growth Strategy & Returns
• Beyond FC in North America
• Organization Capability to Deliver
PAGE 3
SHARE GROWTH IN NORTH AMERICA
Growth Above
Market Index
Primary
Demand Growth
(PDG)
Growth against
Vinyl, Stucco
and Brick
Hard Siding
Alternatives
Growth against
Natural Wood
Defend against
lower value
substitutes:
OSB,
Hardboard, CFC
PAGE 4
HOMEOWNER VALUE PROPOSITION
• Curb, porch & deck appeal
• Fire & abuse
• Low maintenance
• Affordable
PAGE 5
MARKET DEVELOPMENT TO CONVERT VINYL
New Construction
- Geography
- Category of home
- Builder profile
- Better home ↔ Better builder ↔ Better development
Segment / Target / Position Basics
Repair & Remodel
- Geography
- Neighborhoods
- Value proposition direct to home owner
PAGE 6
DEFEND AGAINST LOWER VALUE SUBSTITUTES
Homeowner Value Proposition
- Engineered for climate durability
- Lower maintenance
- Substrate
- Surface finish
- Full exterior wrap
Keys to defend against discounting
- Channel partners
- Homeowner awareness
- Contractor alignment
PAGE 7
SAFETY AT THE FOREFRONT
Safety culture evolving from 2&10 to Zero Harm
• Standard and sustainable systems
• Establish playbook and train employees
• Zero tolerance for unsafe behaviors
PAGE 8
DRIVE DELIVERED UNIT COST TRENDS
Improving delivered unit cost trend … in a sustainable way
1Q FY18 FY17
Delivered Unit Cost
PAGE 9
EXPAND PRODUCT CAPABILITY
Future
Capability
Durability
Density
Surface
Finish Shapes
Sourcing
Alternatives
Engineered
for Climate
PAGE 10
2.4
3.7
0.2 0.1
0.7
0.3
FY10
Nameplate
FY13
Wax Restart
FY14
Fontana Restart
FY17
Start Ups
FY18
Start Ups
FY18
Nameplate
NORTH AMERICA MANUFACTURING CAPACITY
Capacity Expansion Since Housing Downturn
• Fontana 1
• Plant City 4
• Cleburne 3
Future capacity additions:
• FY19 & FY20 greenfield additions: Tacoma (300 mmsf) + Alabama (600 mmsf)
• Fontana 2
• Waxahachie 1
• Plant City 3
• Summerville 1
PAGE 11
FY19 CAPACITY OUTLOOK
3.7
2.8
Bi
llio
ns
o
f S
qu
ar
e
Fe
e
t
FY19 Capacity
BEYOND CURRENT NORTH AMERICA
ORGANIC GROWTH STRATEGY
PAGE 13
INTERNATIONAL
• Steady share gains in APAC
• Reset game plan in Europe
• Further expansion with GDP per capita bias
PAGE 14
NON-FIBER CEMENT IN NORTH AMERICA
Capabilities
Assets
Differentiated Product or
Business Model
Target Building Materials
Organic Growth Potential
with Defendable Moats
Leverage James Hardie
Growth Segments
Searching Across
Close Adjacencies
Large Market Size
Continue to explore options in North America where we have a strong
presence to leverage in a large market
ORGANIZATIONAL CAPABILITY TO ENABLE
PAGE 16
MANAGEMENT TEAM
Sean Gadd
EVP, Markets &
Segments
22 Years; 13 JH Years
Jack Truong
President, International
27 Years; <1 JH Years
Matthew Marsh
CFO and EVP
20 Years; 4 JH Years
Ryan Kilcullen
EVP, Operations
14 Years; 10 JH Years
Louis Gries
CEO
39 Years; 26 JH Years
Zean Nielsen
EVP, NA Sales &
Marketing
20 Years; <1 JH Years
Kirk Williams
CHRO
18 Years; <1 JH Years
EVP, Manufacturing
Open
Chief Technology
Officer
Open
FY17/18 SUPPLY ISSUES & RAMIFICATIONS
PAGE 18
SUPPLY ISSUES & RAMIFICATIONS
• Focus has shifted to building on traction in manufacturing now that
demand / supply equation has returned to balance
• Recapturing lost ground in the market … significant effort is required
• Improving delivered unit cost trend with network stabilization
PAGE 19
KEY MESSAGES
• Zero Harm safety commitment
• Manufacturing reset
• Regain market traction lost during supply shortage period
• International growth
• Non-FC opportunity scans
• Management team build
• Broad-based organizational capability build