OPERATIONS
Ryan Kilcullen & Dave Merkley
September 2017
Exhibit 99.8
PAGE
AGENDA
2
Our Zero Harm Commitment
Manufacturing Innovation & Operational Excellence
Tacoma Greenfield Update
JH Supply Chain Advantage
JOURNEY TO ZERO HARM
PAGE
WHAT DOES OUR JOURNEY LOOK LIKE
4
Zero Harm Safety Performance Driven by a Culture Shift that…
Ensures that safety is our first gate
Thrives on leadership commitment
and visibility
Empowers/engages all employees to
proactively participate
Results in a predictive approach to
safety management in our business
We are committed to a multi-year initiative that results in a World Class
Safety Organization
Pre-2007 2007-2016 Current State World Class
In
cide
n
t
Fr
eq
u
enc
y
Industry Average
PAGE
ZERO HARM APPROACH
5
Safe People
• Engaged, Empowered and Trained
• Visible Leadership
• Committed 24/7/365
Safe Plants
• Clean & Organized
• Facilities that Represent “The Brand”
• Capable Machines and Processes
Safe Systems
• Real-Time Feedback
• Data/Tools for Continuous Risk Reduction
• Verification/Audits
Safe
Plants
Safe
Systems
Safe
People
Zero Harm Culture
Vision: World Class Safety Organization focused on Safe People,
Safe Plants, and Safe Systems to drive a Zero Harm Culture
PAGE
SAFE PEOPLE
6
A key component of our culture shift is to partner with world class
safety programs that support plant floor ownership in safety…
Peer-based observations
Self-triggering assessments
3rd Party verification of JH
execution
PAGE
SAFE PLANTS & SAFE SYSTEMS
7
Safe Plants Safe Systems
Safety as a core philosophy in
plant & process design
Significant reduction in
operator-to-machine interface
Facility maintenance to a JH
brand standard
Predictive measures of
employee engagement
Safety data management
system
World Class training systems in
LOTO, on-boarding, etc.
Our journey to World Class includes a shift in how we engineer, operate
and manage our manufacturing facilities…
PAGE
ZERO HARM SUMMARY
• We are fully committed to a significant culture shift that
results in JH becoming a World Class safety organization
• Core elements of our program are visible leadership
commitment, operator empowerment and predictive systems
• One year in, significant progress has been achieved but
much work remains
8
DELIVERING ON THE POTENTIAL OF JH
MANUFACTURING
PAGE
MANUFACTURING ADVANTAGE
10
Unique throughput advantage in our
manufacturing processes
Engineered scale creates labor and
capital advantage
Flexible manufacturing achieves low
unit cost through market cycles
JH manufacturing: Major lever in our competitive advantage
Proprietary technology delivers unit
cost & ROCE advantage
Innovation in process capability
enables product leadership
Process capability delivers
innovative product differentiation
Innovation approach delivers speed
to market advantage
Network flexibility creates delivered
cost advantage
PAGE
JH MANUFACTURING EVOLUTION
11
Historical focus on step change innovation has delivered significant business value
4x4 FC Line 5x6 FC Line 5x9 FC Line
She
et
Ma
ch
ine
Th
ro
u
gh
p
u
t
Platform Advancement
with continuous
improvement focus
Actual machine performance
Machine design potential
Who we have been
Who we will become
We are becoming a manufacturing organization that can deliver step change &
continuous improvement innovation
PAGE
JH REACHING ITS FULL POTENTIAL
We have created a continuous improvement organization, the sole focus of
which is to shift JH manufacturing from…
Reactive Operations Predictive Manufacturing
Enabled by…
Dependence on operator intervention Lean standard work & process control
Maintenance on equipment failures Predictive reliability program
Local decisions on critical assets Center of excellence on facility investment
to
12
PAGE
SAMPLE OF CONTINUOUS IMPROVEMENT INITIATIVES
13
Creating a JH Approach to Lean
Manufacturing
Establishing Foundational
Capabilities in Reliability
Leader Standard Work
Standard Work Initiative
Visual Workplace Management
Greater consistency within plants, and across our network, will significantly reduce
variation and capture the majority of our potential performance opportunities
PAGE
JH MANUFACTURING STEP CHANGE
14
We have also doubled down on our ability to deliver break through
engineering step change in all areas of JH manufacturing
Next Generation Hatschek
New Product Enablers
Mfg Platform Development
Step innovation in… …enables break through progress
JH Man
u
fa
ct
u
ring
Ca
p
abi
lit
y
Time
PAGE
STEP CHANGING THE HATSCHEK PROCESS
15
Current Speeds vs. Nameplate Enabled by step change innovation…
• Significant increase in drainage rate
• Raw material formation modifications
• Felt technology innovation
• New approach to sheet forming
5x6
Nameplate
Textured
Plank
Product With
Speed Discount
She
et
Mach
ine
Spee
d
Current
Speed
Potential Speed
Gains Beyond Design
Potential to Close
Gap to Nameplate
Current
Speed
PAGE
MANUFACTURING PLATFORM STEP CHANGE
16
Platform A Platform B Platform C
Manufacturing platform innovation has the potential to unlock significant
process, product and cost levers in fiber cement manufacturing.
Enabling Product
Attributes
Enabling Total
Cost Optimization
Enabling New
Products
Longer
Lighter
Flatter/Smoother
Lower Capex
Lower Cost RM
Higher Utilization Engineered
Properties
Higher Strength
Better Finish
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MANUFACTURING CAPABILITY SUMMARY
• We have an established history in step change manufacturing
innovation
• We are adding to and enhancing the talent and capability of
our engineering teams to accelerate the pace of step change
in JH
• The value associated with continuous improvement has
increased with our scale and we are organizing to deliver
• Step change & continuous improvement efforts are both
critical to delivering on our manufacturing strategy
17
TACOMA GREENFIELD CORE CONCEPTS
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TACOMA EXPANSION – SITE OVERVIEW
19
• Nameplate Capacity –
300 Mmstdft/year
• Capabilities – Plank, Backer,
Heritage, ColorPlus® Technology
• 130 Employees at full production
• Site benefits
• Low input cost
• Proximity to growing markets
PAGE
TACOMA EXPANSION
20
Q1 FY18
Building
Erected
Q4 FY18
Start-Up
Q2 FY19
Break
Ground
Install
Complete
85% Design
Capability
Q3 FY18
Q1 FY19
Equipment Install Commission
Timeline Update
People Operational
Zero Harm trained – Day 1
Network-wide staffing plan
Building on existing Tacoma base
Maximize learning per dollar
Intense focus on site yield
Build on Cleburne SM3 approach
Start-Up Approach
PAGE
TACOMA EXPANSION – PRE-AUTOCLAVE CONCEPTS
Safety Integrated into Design
3rd Party Safety Design Consultants
Large Reduction in Human/Fork Lift Interface
Housekeeping Integrated into Design
Material Handling Step Change
Zero Forklifts from Stacker to Finishing
Enables Building Space Optimization
Reduction in Product Handling Damage
21
PAGE
TACOMA EXPANSION – POST-AUTOCLAVE CONCEPTS
Safety Integrated into Design
Focus on Operator Access & Work Floor for Safe Operation
Total Plant Product Flow Designed to Minimize Human Interface
Coating Line Process Step Change
Integrated High Speed Break Out Line
Nested Coating Lines Enabling Operator Efficiency
Single-Line ColorPlus® Technology Coating Applications
High Efficiency Coatings Applications
22
JH SUPPLY CHAIN EVOLUTION
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JH Supply Chain Overview
24
Procurement
Network
Planning
Outbound
Freight
Channel
Management
Production
Scheduling
Customer
Experience
A fully integrated value chain that begins with customer value creation…
...and has capabilities that create a substantial competitive advantage:
– Highly integrated customer/channel relationships
– To-the-piece order flow, manufacturing, & delivery capability
– Automated production scheduling that leverages manufacturing scale
– Flexible network model providing redundancy & optimal landed cost
PAGE
JH Supply Chain – Capability Advantage
Automated
Order Taking
Software
Sequential low
cost tendering
for delivery
Optimization
Planning
Software builds &
aggregates large
production runs
System
Generates VMI
Replenishments
Trucks
TMS Software
combines job packs
and VMI
replenishments to
optimize truck weight
and multi-stop routing
Highly automated, integrated systems…
Enable Customer
Integration
Leverage & Exploit
Manufacturing Scale
Optimize Delivered Cost with
Freight/Sourcing
25
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CAPABILITY INVESTMENTS TO ENABLE GROWTH
26
An expanding network enables a
variety of optimization levers…
…requiring a new level of
network planning capability to…
Achieve the true lowest landed cost
network
Fully exploit the scale of our VMI &
reload network
Appropriately level load production
through our seasonal demand cycles
Make optimized trade-off decisions
between relative cost differences
We are investing in our significant network planning & modeling capability
to enable full leverage of our increasing scale
Existing & potential reloads
JH Plants
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ENABLING GROWTH “INSIDE THE WALLS”
27
Increasing plant scale & value-add processing
is changing our plant size & flow…
…requiring new capabilities inside
the walls…
• Product flow optimization
• Automated material handling
• Warehouse management system
• Work design & flow analysis
We are investing in new capabilities to capture the full benefit of our plant
scale & to enable new processing to enhance customer value
Sheet
Machine
Raw
Mats
Finishing
Primed
Inventory
Raw Mats
Traditional Hardie Plant Future State Hardie Plant
Sheet
Machine
Sheet
Machine
Sheet
Machine
Finishing
Break
Out Line
ColorPlus
Operations
Heritage
Operations
ToM
Processing
Cell
Full Product Finished Goods Inventory &
Accessories
PAGE
FREIGHT OUTLOOK
28
Continued economic recovery
Market supply/demand dynamics continue to create upward cost pressure…
JH continues to view freight capability as a core competency and expects to
offset market pressure through continued performance gains
Market Pressure
Driver shortage
Decreasing trend in driver efficiency
Congested & under-performing rail
JH Response
Optimize proven freight model
Operate as “shipper of choice”
Leverage network product capability
Intense focus on all controllable levers
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SUPPLY CHAIN SUMMARY
• We continue to invest in supply chain capability to enable
customer value creation at an optimized unit cost
• Our current efforts are focused on leveraging the full benefit
of our network and plant scale
• Freight market headwinds persist, but we are well positioned
to offset them with industry leading freight capabilities
29
PAGE
KEY MESSAGES
30
• We are becoming a Zero Harm organization
• Step change innovation in manufacturing will continue to deliver
significant business value
• We are increasing our focus on continuous improvement to
become a more predictable manufacturer
• Tacoma Greenfield on track and includes step change in plant
design
• We are continuing to invest in supply chain capability to enable
organic growth