Q2 FY18 MANAGEMENT PRESENTATION
09 November 2017
Exhibit 99.4
PAGE
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
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 and Exchange Commission, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation
memoranda and prospectuses, in media releases and other written materials and in oral statements made by the Company’s officers, directors or employees to analysts, institutional
investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking
statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include:
• statements about the Company’s future performance;
• projections of the Company’s results of operations or financial condition;
• statements regarding the Company’s plans, objectives or goals, including those relating to strategies, initiatives, competition, acquisitions, dispositions and/or its products;
• expectations concerning the costs associated with the suspension or closure of operations at any of the Company’s plants and future plans with respect to any such plants;
• expectations concerning the costs associated with the significant capital expenditure projects at any of the Company’s plants and future plans with respect to any such projects;
• expectations regarding the extension or renewal of the Company’s credit facilities including changes to terms, covenants or ratios;
• expectations concerning dividend payments and share buy-backs;
• statements concerning the Company’s corporate and tax domiciles and structures and potential changes to them, including potential tax charges;
• statements regarding tax liabilities and related audits, reviews and proceedings;
• statements regarding the possible consequences and/or potential outcome of legal proceedings brought against us and the potential liabilities, if any, associated with such
proceedings;
• expectations about the timing and amount of contributions to Asbestos Injuries Compensation Fund (AICF), a special purpose fund for the compensation of proven Australian
asbestos-related personal injury and death claims;
• expectations concerning the adequacy of the Company’s warranty provisions and estimates for future warranty-related costs;
• statements regarding the Company’s ability to manage legal and regulatory matters (including but not limited to product liability, environmental, intellectual property and
competition law matters) and to resolve any such pending legal and regulatory matters within current estimates and in anticipation of certain third-party recoveries; and
• statements about economic conditions, such as changes in the US economic or housing recovery or changes in the market conditions in the Asia Pacific region, the levels of
new home construction and home renovations, unemployment levels, changes in consumer income, changes or stability in housing values, the availability of mortgages and
other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates, and builder and
consumer confidence.
2
PAGE
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
(continued)
Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,”
“objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are
cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following
cautionary statements.
Forward-looking statements are based on the Company’s current expectations, estimates and assumptions and because forward-looking statements address future results, events
and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond the Company’s control. Such known and unknown
risks, uncertainties and other factors may cause actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements
expressed, projected or implied by these forward-looking statements. These factors, some of which are discussed under “Risk Factors” in Section 3 of the Form 20-F filed with the
Securities and Exchange Commission on 18 May 2017, include, but are not limited to: all matters relating to or arising out of the prior manufacture of products that contained
asbestos by current and former Company subsidiaries; required contributions to AICF, any shortfall in AICF and the effect of currency exchange rate movements on the amount
recorded in the Company’s financial statements as an asbestos liability; the continuation or termination of the governmental loan facility to AICF; compliance with and changes in tax
laws and treatments; competition and product pricing in the markets in which the Company operates; the consequences of product failures or defects; exposure to environmental,
asbestos, putative consumer class action or other legal proceedings; general economic and market conditions; the supply and cost of raw materials; possible increases in competition
and the potential that competitors could copy the Company’s products; reliance on a small number of customers; a customer’s inability to pay; compliance with and changes in
environmental and health and safety laws; risks of conducting business internationally; compliance with and changes in laws and regulations; currency exchange risks; dependence
on customer preference and the concentration of the Company’s customer base on large format retail customers, distributors and dealers; dependence on residential and commercial
construction markets; the effect of adverse changes in climate or weather patterns; possible inability to renew credit facilities on terms favorable to the Company, or at all; acquisition
or sale of businesses and business segments; changes in the Company’s key management personnel; inherent limitations on internal controls; use of accounting estimates; and all
other risks identified in the Company’s reports filed with Australian, Irish and US securities regulatory agencies and exchanges (as appropriate). The Company cautions you that the
foregoing list of factors is not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those referenced in the Company’s forward-looking
statements. Forward-looking statements speak only as of the date they are made and are statements of the Company’s current expectations concerning future results, events and
conditions. The Company assumes no obligation to update any forward-looking statements or information except as required by law.
3
PAGE
USE OF NON-GAAP FINANCIAL INFORMATION; AUSTRALIAN
EQUIVALENT TERMINOLOGY
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 financial measures are designed to provide investors with an alternative method for assessing our performance
from on-going operations, capital efficiency and profit generation. Management uses these financial measures for the same purposes. These financial measures
include:
• Adjusted EBIT;
• Adjusted EBIT margin;
• Adjusted net operating profit;
• Adjusted diluted earnings per share;
• Adjusted operating profit before income taxes;
• Adjusted income tax expense;
• Adjusted effective tax rate;
• Adjusted EBITDA;
• Adjusted EBITDA excluding Asbestos; and
• Adjusted selling, general and administrative expenses (“Adjusted SG&A”)
These financial measures are or may be non-US GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission and may
exclude or include amounts that are included or excluded, as applicable, in the calculation of the most directly comparable financial measures calculated in
accordance with US GAAP. These non-GAAP financial measures should not be considered to be more meaningful than the equivalent US GAAP measure.
Management has included such measures to provide investors with an alternative method for assessing its operating results in a manner that is focused on the
performance of its ongoing operations and excludes the impact of certain legacy items, such as asbestos adjustments. Additionally, management uses such non-
GAAP financial measures for the same purposes. However, these non-GAAP financial measures are not prepared in accordance with US GAAP, may not be
reported by all of the Company’s competitors and may not be directly comparable to similarly titled measures of the Company’s competitors due to potential
differences in the exact method of calculation. For additional information regarding the non-GAAP financial measures presented in this Management Presentation ,
including a reconciliation of each non-GAAP financial measure to the equivalent US GAAP measure, see the slide titled “Non-US GAAP Financial Measures”
included in the Appendix to this Management Presentation.
In addition, this Management Presentation includes financial measures and descriptions that are considered to not be in accordance with US GAAP, but which are
consistent with financial measures reported by Australian companies, such as operating profit, EBIT and EBIT margin. Since the Company prepares its
Consolidated Financial Statements in accordance with US GAAP, the Company provides investors with a table and definitions presenting cross-references between
each US GAAP financial measure used in the Company’s Condensed Consolidated Financial Statements to the equivalent non-US GAAP financial measure used in
this Management Presentation. See the section titled “Non-US GAAP Financial Measures” included in the Appendix to this Management Presentation.
4
PAGE
AGENDA
• Fermacell Acquisition – Louis Gries, CEO
• Overview and Operating Review – Louis Gries, CEO
• Financial Review – Matt Marsh, EVP and CFO
• Questions and Answers – Q2
• Questions and Answers – Fermacell Acquisition
5
FERMACELL ACQUISITION
Louis Gries, CEO
PAGE
Fermacell: Transaction Summary
7
Valuation
► All-cash transaction valued at €473 million (approximately
US$549 million)
► Represents ~9x multiple on projected CY2017 EBITDA
Financial
Impact
Financing
► Committed bridge financing from HSBC
► Plan to replace bridge financing with long-term debt
► Above net debt leverage target range, in the short term
Closing
► Estimated completion in Q4 FY2018
► Subject to customary closing conditions
► Accretive in year 2
► Accretive in year 1 excluding transaction, integration and other
one time costs
Fermacell is Europe’s leading producer of premium fiber gypsum boards
PAGE
Fermacell: Transaction Rationale
8
Compelling Strategic Fit
Creates Platform for
Leading European
Fiber Cement Business
Attractive Opportunity
► Category leader
► Differentiated product
► Strong brand
► Technical Sales
► Track record of growth
► Strong management team
► Deep knowledge of European markets
► Strong industry relationships
► Established technical salesforce
► Routes to market
► Strong brand recognition
► Accretive in year 2
► Delivers strong returns and cash flow
► Long-term upside growth potential
PAGE
Fermacell: Leading Producer of Premium Fiber Gypsum Boards
9
► Differentiated category of fiber
gypsum and floor boards
► Top player in the category
► A European business of scale
► Consistent, profitable growth
► Strong management team
Commercial
Residential New
Construction
Residential Repair &
Remodel
Top 5 Countries/Regions by Revenue
Revenue by Segment
Germany
Switzerland / Austria
France
Scandinavia
BeNeLux
PAGE
Fermacell: a European Business of Scale
10
Manufacturing
R&D
Headquarters
Countries with own
salesforce (exl. UAE)
► CY2017 projected
revenue of
~€270million
► ~800 employees
► 6 manufacturing
plants
► Salesforce in 12
countries
► #1 category share
position in key
countries
► HQ in Germany
PAGE
Transaction Enables Step-Change Growth in Fiber Cement
11
What we can leverage from
Fermacell…
…leading to a step-
change in Fiber Cement
Growth
…enables strong returns
for Fiber Cement
Deep knowledge of
European markets
Strong industry relationships
Established technical
salesforce
Routes to market: Channel
and Customer
Strong brand recognition
European-specific fiber
cement product development
Local fiber cement
manufacturing
Potential technology sharing
benefits between fiber
gypsum and fiber cement
OVERVIEW AND OPERATING REVIEW
Louis Gries, CEO
PAGE
GROUP OVERVIEW
13
• North America Fiber Cement: Manufacturing stabilizing and improving; volume still tracking slightly behind
market index due to prior year capacity constraint. Confident we are on the right track.
• International Fiber Cement out performing expectations
• Declared first half ordinary dividend of US10.0 cents per security
1 Excludes Asbestos related expenses and adjustments and tax adjustments
2 Excludes Asbestos related expenses and adjustments
Adjusted Net Operating Profit1 Adjusted Diluted EPS1
2nd Qtr Half Year 2nd Qtr Half Year
US$73.9M 1% US$135.6M 4% US17 cents Flat US31 cents 3%
Adjusted EBIT 2 Net Operating Cash Flow
2nd Qtr Half Year Half Year
S$104.1M 2% US$192.4M 6% US$98.0M 25%
Adjusted EBIT Margin % 2
2nd Qtr Half Year
19.8% 1.6 pts 18.6% 2.3 pts
PAGE
NORTH AMERICA FIBER CEMENT SUMMARY
Volume
• Growth below market index
• FY17 capacity constraint dampened FY18 demand
Price
• Favorably impacted by annual changes in strategic pricing
effective April 2017; and tactical pricing strategies
Manufacturing Capacity and Production Costs
• Stabilizing and performance improving quarter-to-quarter
• Prior year analysis impacted by inefficiencies resulting
from capacity constraint not fully reflected in 1H’17 results
EBIT
• 1H’18 EBIT decreased compared to pcp, primarily driven by
the higher production costs and higher freight cost
• Partially offset by higher average net price compared to pcp
14
Q2'18 1H'18
Net Sales US$398.1M US$791.2M
4% 5%
Sales Volume 561.6 mmsf 1,123.1 mmsf
2% FLAT
Average Price US$702 per msf US$697 per msf
6% 5%
EBIT US$97.4M US$177.2M
FLAT 8%
PAGE
NORTH AMERICA DELIVERED UNIT COST
15
• Delivered unit cost improved Q2FY18 vs Q1FY18
• Throughputs, freight and spending all improved Q2FY18 vs Q1FY18
• Continued improvements expected throughout the second half of FY18
• Delivered unit cost in Q2 FY18 and 1H FY18 remains higher than pcp
PAGE
0
5
10
15
20
25
30
0
10
20
30
40
50
60
70
80
90
100
FY13 FY14 FY15 FY16 FY17 FY18
EBI
T M
argi
n
EBI
T US$
M
Quarterly EBIT and EBIT Margin1
EBIT EBIT/Sales
NORTH AMERICA FIBER CEMENT
16
HY FY18 EBIT Margin % down 310 bps to 22.4%
compared to pcp, but remains within target range
1 Excludes asset impairment charges of US$5.8 million in Q3 FY13 and US$11.1 million in Q4 FY13
PAGE
NORTH AMERICA FIBER CEMENT
17
• Strategic price increase effective April 2017
• Satisfied with tactical pricing and price positioning
• US housing starts outpace our volume growth
1 Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau
$0
$400
$800
$1,200
$1,600
0
500
1,000
1,500
2,000
2,500
3,000
Re
ve
nu
e (
US
$M
)
JH
V
ol
ume
(m
m
sf)
, S
ta
rt
s (
00
0s
U
ni
ts
)
Top Line Growth1
JH Volume Housing Starts JH Revenue
630
616
641
666
669
665
697
550
590
630
670
710
FY12 FY13 FY14 FY15 FY16 FY17 1H'18
US
$
pe
r M
SF
Average Net Sales Price
PAGE 18
Volume
• Growth primarily in our Philippines and Australian
businesses
Lower average selling price compared to pcp
• Favorably impacted by modest annual changes in
Australia strategic pricing
• Adversely impacted by tactical pricing strategies and
volume growth in the Philippines
EBIT
• Strong results driven by volume growth and a higher
average net sales price in our Australian business
INTERNATIONAL FIBER CEMENT SUMMARY
Q2'18 1H'18
Net Sales US$123.9M US$234.7M
16% 12%
Sales Volume 139.4 mmsf 268.1 mmsf
15% 9%
Average Price US$785 per msf US$776 per msf
4% 1%
EBIT US$30.8M US$57.0M
20% 15%
PAGE
INTERNATIONAL FIBER CEMENT (USD)
19
Australia
• Strong market and PDG performance
• EBIT favorably impacted by volume, price
and product mix
New Zealand
• Higher net sales driven by higher volume
• Higher EBIT driven by increased net sales
and reduced SG&A expenses
Philippines
• Q2 favorably impacted by strong volume
• 1H EBIT unfavorably impacted by tactical
pricing strategies
Europe
• Higher net sales and EBIT for the quarter
due to favorable foreign translation impact
• Lower net sales and EBIT for the half year
driven by lower volume in certain regions
Volume Net Sales EBIT Volume Net Sales EBIT
Australia
Q2'18 1H'18
Australia
Volume Net Sales EBIT Volume Net Sales EBIT
1H'18
New Zealand
Q2'18
New Zealand
Volume Net Sales EBIT Volume Net Sales EBIT
Europe
1H'18
Europe
Q2'18
Volume Net Sales EBIT Volume Net Sales EBIT
Philippines
1H'18Q2'18
Philippines
FINANCIAL REVIEW
Matt Marsh, EVP and CFO
PAGE
Net sales increased 6%
• Higher average net sales price in North America Fiber
Cement segment
• Volume growth in International Fiber Cement segment
Gross profit increased 3%, gross margin %
down 110 bps
SG&A expenses increased 9%
Adjusted net operating profit decreased 1%
• North America Fiber Cement segment EBIT was flat
versus pcp
• International Fiber Cement segment EBIT increased 20%
versus pcp
RESULTS – 2nd QUARTER FY18
21
1 Excludes Asbestos related expenses and adjustments
2 Excludes Asbestos related expenses and adjustments and tax adjustments
US$ Millions Q2'18 Q2'17 % Change
Net sales 525.8 495.8 6
Gross profit 187.2 182.1 3
SG&A expenses (75.0) (69.1) (9)
EBIT 97.1 88.5 10
Net operating
profit
66.4 57.0 16
Adjusted EBIT
1 104.1 106.1 (2)
Adjusted net
operating profit
2 73.9 74.7 (1)
Three Months Ended 30 September
PAGE
Net sales increased 6%
• Higher average net sales price in North America Fiber
Cement segment
• Volume growth in International Fiber Cement segment
Gross profit decreased 1%, gross margin %
down 240 bps
SG&A expenses increased 5%
• Investing in future growth and organization capability
Adjusted net operating profit decreased 4%
• North America Fiber Cement segment EBIT decreased
8% versus pcp
• International Fiber Cement Segment EBIT increased
15% versus pcp
RESULTS – HALF YEAR FY18
22
1 Excludes Asbestos related expenses and adjustments
2 Excludes Asbestos related expenses and adjustments and tax adjustments
US$ Millions 1H'18 1H'17 % Change
Net sales 1,033.5 973.5 6
Gross profit 356.2 358.9 (1)
SG&A expenses (148.5) (141.1) (5)
EBIT 181.1 206.3 (12)
Net operating
profit
123.8 144.1 (14)
Adjusted EBIT
1 192.4 203.7 (6)
Adjusted net
operating profit
2 135.6 141.4 (4)
Half Year Ended 30 September
PAGE
1 As Reported 1H'18 figures converted using 1H'17 weighted average exchange rates
2 Reflects the difference between 1H'18 As Reported and 1H'18 using 1H'17 w ighted average exchange rates
CHANGES IN AUD vs. USD
23
0.60
0.70
0.80
30 Sep 15 31 Dec 15 31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 31 Mar 17 30 Jun 17 30 Sep 17
AU
D/USD
Ex
cha
nge
Ra
te
$ Favorable %
1.9 -
0.9 -
0.8 -
1.4 t 1%
Translation Impact 2
US$ Millions 1H'18 1H'17 % Change 1H'18 % Change
Net Sales $ 1,033.5 973.5 t 6% $ 1,031.6 t 6%
Gross Profit 356.2 358.9 u 1% 355.3 u 1%
Adjusted EBIT 192.4 203.7 u 6% 191.6 u 6%
Adjusted net operating profit $ 135.6 141.4 u 4% $ 134.2 u 5%
As Reported
Excluding Translation
Impact 1
PAGE
NORTH AMERICA INPUT COSTS
• The price of NBSK pulp increased 11%
compared to pcp
• Cement prices continue to rise, up 5%
compared to pcp
• Freight market prices increased 16%
compared to pcp
• Gas prices are up 13% compared to pcp
• Electricity prices are down 5% compared to
pcp
24
The information underlying the table above is sourced as follows:
• Pulp – Cost per ton – from RISI
• Gas – Cost per thousand cubic feet for industrial users – from US Energy Information Administration
• Electric – Cost per thousand kilowatt hour for industrial users – from US Energy Information Administration
• Cement – Relative index from the Bureau of Labor Statistics
• Freight – Cost per mile – from Dial-a-Truck Solutions
• Gas and Electric prices for Q2’18 are based on Q1’18 actuals
0
1
2
3
4
5
6
7
8
9
10
0
200
400
600
800
1,000
1,200
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18
Ce
m
en
t,
Ga
s,
Ele
ct
ric
a
nd
F
re
igh
t P
ric
es
Pu
lp
P
ric
es
Quarterly US Input Costs
PULP GAS ELECTRIC CEMENT FREIGHT
PAGE
NORTH AMERICA FIBER CEMENT – Q2 FY18 vs Q1 FY18
25
2Q’18 Gross margin improved 270 bps compared to 1Q’18
• Average net sales price improved
Full quarter of strategic price change
Tactical pricing
• Production costs improved as expected
• Continuing to invest in SG&A and organization capability, although
declining as a percentage of revenue
• EBIT margin increased 420 basis points to 24.5%
702.0
693.0
Q2 FY18 Q1 FY18
Average net sales price (per msf)
561.6 561.5
Q2 FY18 Q1 FY18
Volume (mmsf)
24.5
20.3
Q2 FY18 Q1 FY18
EBIT margin (%)
PAGE
North America Fiber Cement EBIT summary
• Q2 EBIT remained flat and 1H EBIT decreased 8%
compared to pcp
• Primarily driven by higher production costs and
increased SG&A expenses
SEGMENT EBIT – 2nd QUARTER and HALF YEAR FY18
26
International Fiber Cement EBIT summary
• Q2 EBIT increased 20% and 1H EBIT increased 15%
compared to pcp
• Strong volume growth in the Philippines and Australia
• Favorable conditions in our addressable markets and
increased market penetration in Australia
91.4 97.7
97.4
182.4 192.3 177.2
0
50
100
150
200
250
FY16 FY17 FY18
US
$
M
ill
io
ns
North America Fiber Cement
Q2 EBIT
1H EBIT
22.2
25.7
30.8
42.2
49.6
57.0
0
15
30
45
60
FY16 FY17 FY18
US
$
M
ill
io
ns
International Fiber Cement
Q2 EBIT
1H EBIT
PAGE
Other Businesses
• Incremental investment in product and manufacturing
capabilities
R&D
• On strategy to invest 2-3% of net sales
General Corporate Costs
• Increase driven by higher discretionary expenses and
decrease in recognized foreign exchange gains
• 1H increase partially offset by the gain on the sale of a
storage building near our Fontana facility in Q1 FY18
SEGMENT EBIT – 2nd QUARTER and HALF YEAR FY18
27
1
Excludes Asbestos related expenses and adjustments
(2.1)
(1.2)
(2.1)
(4.1)
(2.6)
(3.9)
(5)
(4)
(3)
(2)
(1)
0
FY16 FY17 FY18
US
$
Mi
lli
on
s
Other Businesses
Q2 EBIT
1H EBIT
(6.0) (6.0)
(7.2)
(12.0) (12.1)
(13.3)
(15)
(10)
(5)
0
FY16 FY17 FY18
US
$
Mi
lli
on
s
Research and Development
Q2 EBIT
1H EBIT
(10.1) (10.1)
(14.8)
(23.6) (23.5) (24.6)
(30)
(20)
(10)
0
FY16 FY17 FY18
US
$
Mi
lli
on
s
General Corporate Costs
1
Q2 EBIT
1H EBIT
PAGE
1 Includes Asbestos adjustments, AICF SG&A expenses and net AICF interest (income) expense
2 Excludes tax effects of Asbestos and other tax adjustments
23.8% estimated adjusted effective tax rate for
the year
• Adjusted income tax expense decreased due to
changes in geographical mix of earnings, and a
lower Adjusted operating profit before income taxes
• Income taxes are paid and payable in Ireland, the
US, Canada, New Zealand and the Philippines
• Income taxes are not currently paid or payable in
Europe (excluding Ireland) or Australia due to tax
losses. Australian tax losses primarily result from
deductions relating to contributions to AICF
INCOME TAX
28
US$ Millions Q2’18 Q2’17 1H'18 1H'17
Operating profit before taxes 90.3 82.0 167.4 193.0
Asbestos adjustments
1 6.4 17.5 10.6 (2.0)
Adjusted operating profit
before income taxes
96.7 99.5 178.0 191.0
Adjusted income tax expense
2 (22.8) (24.8) (42.4) (49.6)
Adjusted effective tax rate 23.6% 24.9% 23.8% 26.0%
Income tax exp ns (23.9) (25.0) (43.6) (48.9)
Income taxes paid 21.2 38.0
Income taxes pay ble 4.0 1.2
Three Months and Half Year Ended 30 September
PAGE
1
CASHFLOW
29
Decrease in net operating cash flow
• Building inventory levels
• Increase in the payment to AICF
Higher investing activities
• Increase in capacity expansion related capital
expenditures
• Includes proceeds from the sale of a storage
building near our Fontana facility
Lower financing activities
• Decrease driven by lower share buyback activity
1 Excludes AP related to capital expenditures
2 Includes capitalized interest
3 Distinct from the term defined by the AFFA for purposes of calculating our annual contribution to AICF
4 Includes debt issuance costs
US$ Millions 1H'18 1H'17
Change
(%)
Net Income 123.8 144.1 (14)
Adjustment for non-cash items 71.1 54.8 30
Annual AICF contribution (102.2) (91.1) (12)
Operating working capital
1 (11.7) 36.6
Other net operating activities 17.0 (13.5)
Cash Flow from Operations 98.0 130.9 (25)
Purchases of property, plant and equipment
2 (85.4) (36.7)
Proceeds from sale of property, plant and
equipment
7.9 -
Free Cash Flow
3 20.5 94.2 (78)
Dividends paid (131.3) (130.2) (1)
Net proceeds from borrowings and notes
4 115.0 110.6 4
Share related activiti s 0.2 (97.1)
Free Cash Flow after Financing Activities 4.4 (22.5)
PAGE
CAPITAL EXPENDITURES
• Half year CAPEX spend of US$83.6 million increased
US$48.0 million compared to pcp
• North America capacity projects during Q2 FY18:
Completed the start-up of the 4th sheet machine at
our Plant City facility
Continued the start-up at our Summerville facility
Continued construction of a greenfield expansion in
Tacoma, expected commissioning Q1 FY19
Continued planning our Prattville, Alabama facility.
Expected to be commissioned in 1H FY20
• Continued to expand capacity at our Philippines facility,
expected to be completed 2H FY18
0
10
20
30
40
50
60
Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18
U
S
$
M
il
li
o
n
s
CAPEX Spend
Capacity Maintenance & Other
30
PAGE
FINANCIAL MANAGEMENT SUPPORTING GROWTH
31
Strong Financial
Management
Disciplined Capital
Allocation
Liquidity and Funding
• Strong margins and operating
cash flows
• Strong governance and
transparency
• Investment-grade financial
management
• Invest in R&D and capacity
expansion to support organic
growth
• Maintain ordinary dividends within
the defined payout ratio
• Flexibility for:
Accretive and strategic
inorganic opportunities
Cyclical market volatility
Further shareholder returns
when appropriate
• Conservative leveraging of
balance sheet at a target within
1-2 times Adjusted EBITDA
excluding asbestos
US$500 million of
unsecured revolving
credit facility; US$400
million senior unsecured
notes at Q2 FY18
Weighted average
maturity of 3.2 years on
bank facilities; 4.2 years
on total debt at Q2 FY18
42% liquidity on bank
debt at Q2 FY18
Financial management consistent with investment grade credit
Ability to withstand market cycles and other unanticipated events
Moody’s S&P Fitch
Ba1
upgraded Jun’16
outlook stable
BB
affirmed Feb’17
outlook positive
BBB-
affirmed Mar’17
outlook stable
PAGE
LIQUIDITY PROFILE
32
Strong balance sheet
US$78.8 million cash
US$601.9 million net debt3 at 30 September 2017
42% liquidity on bank debt at 30 September 2017
Corporate debt structure
US$500 million unsecured revolving credit facility,
with a December 2020 maturity
US$400 million senior unsecured notes2 maturing
February 2023
Leverage strategy
1.39x net debt to Adjusted EBITDA excluding
asbestos; within the 1-2x leverage target range
$400 $400
$500
$290
$250
Available Debt Outstanding at 30 September
2017
Debt Profile
US$ Millions
Senior Notes Bank Facilities Accordion
2
1
1 Incremental liquidity of up to US$250 million may be accessed via an accordion
feature, which is provided for under the terms of the syndicated revolving credit
facility agreement, but not credit approved
2 Callable from 15 February 2018; callable at par from 15 February 2021
3 Excludes Short-term debt – Asbestos; includes unamortized OID ($1.7 million); bond
premium ($1.9 million) and debt issuance costs ($9.5 million)
PAGE
FY2018 GUIDANCE
• Management notes the range of analysts’ forecasts for net operating profit excluding asbestos for the year
ending 31 March 2018 is between US$251 million and US$279 million
• Management expects full year Adjusted net operating profit to be between US$245 million and
US$275 million assuming, among other things, housing conditions in the United States continue to improve
in line with our assumed forecast of new construction starts between approximately 1.2 and 1.3 million,
input prices remain consistent and an average USD/AUD exchange rate that is at or near current levels for
the remainder of the year
• Management cautions that although US housing activity has been improving, market conditions remain
somewhat uncertain and some input costs remain volatile. Management is unable to forecast the
comparable US GAAP financial measure due to uncertainty regarding the impact of actuarial estimates on
asbestos-related assets and liabilities in future periods
33
QUESTIONS- Q2
QUESTIONS – FERMACELL ACQUISITION
APPENDIX
PAGE
FINANCIAL SUMMARY
1 Excludes Asbestos related expenses and adjustments
2 Excludes AICF interest income/expense
37
US$ Millions Q2'18 Q2'17 % Change 1H'18 1H'17 % Change
Net Sales
North America Fiber Cement 398.1$ 384.5$ 4 791.2$ 754.8$ 5
International Fiber Cement 123.9 106.6 16 234.7 209.5 12
Other Businesses 3.8 4.7 (19) 7.6 9.2 (17)
Total Net Sales 525.8$ 495.8$ 6 1,033.5$ 973.5$ 6
EBIT
North America Fiber Cement 97.4$ 97.7$ - 177.2$ 192.3$ (8)
International Fiber Cement 30.8 25.7 20 57.0 49.6 15
Other Businesses (2.1) (1.2) (75) (3.9) (2.6) (50)
Research & Development (7.2) (6.0) (20) (13.3) (12.1) (10)
General Corporate
1
(14.8) (10.1) (47) (24.6) (23.5) (5)
Adjusted EBIT 104.1$ 106.1$ (2) 192.4$ 203.7$ (6)
Net interest expense
2 (7.4) (7.1) (4) (14.0) (12.5) (12)
Other income (expense) - 0.5 - (0.4) (0.2) -
Adjusted income tax expense (22.8) (24.8) 8 (42.4) (49.6) 15
Adjusted net operating profit 73.9$ 74.7$ (1) 135.6$ 141.4$ (4)
Three Months and Half Year Ended 30 September
PAGE
ASBESTOS CLAIMS DATA
38
• Quarter and half year claims received were 8%
and 5% above actuarial estimates, respectively
• Quarter and half year claims received increased
by 19% and 6%, respectively, compared to pcp
• Claims reporting during the half year for
mesothelioma:
• 11% higher than actuarial estimates
• 13% higher than pcp
• Average claim settlement for the half year was 7%
below actuarial estimates:
Lower average claim settlement sizes across
most disease types
Lower average claim size for non-large
mesothelioma claims
Favorable large claims experience
1 Average claim settlement is derived as the total amount paid divided by the number of non-nil claim
156 144 131
302 288 285
Q2'18
Actuals
Q2'18
Actuarial
Estimates
Q2'17
Actuals
1H'18
Actuals
1H'18
Actuarial
Estimates
1H'17
Actuals
Claims Received
305,000
283,000
226,000
264,000
283,000
225,000
Q2'18
Actuals
Q2'18
Actuarial
Estimates
Q2'17
Actuals
1H'18
Actuals
1H'18
Actuarial
Estimates
1H'17
Actuals
Average Claim Settlement (A$)1
PAGE
DEPRECIATION AND AMORTIZATION
39
US$ Millions
Q2'18 Q2'17 1H'18 1H'17
Depreciation and amortization
North America Fiber Cement 18.2$ 15.2$ 35.3$ 30.2$
International Fiber Cement 3.3 3.0 6.4 5.9
Other Businesses 0.6 0.6 1.1 1.1
Research and Development 0.4 0.5 0.8 0.9
General Corporate 0.9 1.1 1.6 1.8
Total depreciation and amortization 23.4$ 20.4$ 45.2$ 39.9$
Three Months and Half Year Ended 30 September
PAGE
NON-US GAAP FINANCIAL MEASURES AND TERMS
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 Condensed Consolidated Financial
Statements
Definitions
EBIT – Earnings before interest and taxes
EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales
Sales Volumes
mmsf – million square feet, where a square foot is defined as a standard square foot of 5/16” thickness
msf – thousand square feet, where a square foot is defined as a standard square foot of 5/16” thickness
Non-financial Terms
AFFA – Amended and Restated Final Funding Agreement
AICF – Asbestos Injuries Compensation Fund Ltd
40
PAGE
NON-US GAAP FINANCIAL MEASURES
Financial Measures – US GAAP equivalents
This document contains financial statement line item descriptions that are considered to be non-US GAAP, but are consistent with those
used by Australian companies. Because the company prepares its Condensed Consolidated Financial Statements under US GAAP, the
following table cross-references each non-US GAAP line item description, as used in Management’s Analysis of Results and Media
Release, to the equivalent US GAAP financial statement line item description used in the company’s Condensed Consolidated Financial
Statements:
41
Management's Analysis of Results and Consolidated Statements of Operations
Media Release and Other Comprehensive Income (Loss)
(US GAAP)
Net sales Net sales
Cost of goods sold Cost of goods sold
Gross profit Gross profit
Selling, general and administrative expenses Selling, general and administrative expenses
Research and development expenses Research and development expenses
Asbestos adjustments Asbestos adjustments
EBIT* Operating income (loss)
Net interest income (expense)* Sum of interest expense and interest income
O r i c (expense) Other income (expense)
Operating profit (loss) before income taxes* Income (loss) before income taxes
Income tax (expense) benefit Income tax (expense) benefit
Net operating profit (loss)* Net income (loss)
*- Represents non-US GAAP descriptions used by Australian companies.
PAGE
Financial Measures – US GAAP equivalents
NON-US GAAP FINANCIAL MEASURES
42
Adjusted EBIT
US$ Millions
Q2'18 Q2'17 1H'18 1H'17
EBIT 97.1$ 88.5$ 181.1$ 206.3$
Asb stos:
Asbestos adjustments 6.6 17.2 10.5 (3.4)
AICF SG&A expenses 0.4 0.4 0.8 0.8
Adjusted EBIT 104.1$ 106.1$ 192.4$ 203.7$
Net sales 525.8$ 495.8$ 1,033.5$ 973.5$
Adjusted EBIT margin 19.8% 21.4% 18.6% 20.9%
Three Months and Half Year Ended 30 September
dj ted net operating profit
US$ Millions
Q2'18 Q2'17 1H'18 1H'17
et operating profit 66.4$ 57.0$ 123.8$ 144.1$
Asbestos:
Asbestos adjustments 6.6 17.2 10.5 (3.4)
AICF SG&A expenses 0.4 0.4 0.8 0.8
AICF interest (income) expense, net (0.6) (0.1) (0.7) 0.6
Asbestos and other tax adjustments 1.1 0.2 1.2 (0.7)
Adjusted net operating profit 73.9$ 74.7$ 135.6$ 141.4$
Three Months and Half Year Ended 30 September
PAGE 43
NON-US GAAP FINANCIAL MEASURES
Adjusted diluted earnings per share
Q2'18 Q2'17 1H'18 1H'17
Adjusted net operating profit (US$ Millions) 73.9$ 74.7$ 135.6$ 141.4$
Weighted average common shares outstanding -
Diluted (millions)
441.5 445.4 441.5 446.4
Adjusted diluted earnings per share (US cents) 17 17 31 32
Three Months and Half Year Ended 30 September
Adjusted effective tax rate
US$ Millions
Q2'18 Q2'17 1H'18 1H'17
Operating profit before income taxes 90.3$ 82.0$ 167.4$ 193.0$
Asbestos:
Asbestos adjustments 6.6 17.2 10.5 (3.4)
AICF SG&A expenses 0.4 0.4 0.8 0.8
AICF interest (income) expense, net (0 6) (0 1) (0 7) 0 6
Adjus operating profit before income taxes 96.7$ 99.5$ 178.0$ 191.0$
Income tax expense (23.9)$ (25.0)$ (43.6)$ (48.9)$
Asbestos and other tax adjustments 1.1 0.2 1.2 (0.7)
Adjusted income tax expense (22.8)$ (24.8)$ (42.4)$ (49.6)$
Effective tax rate 26.5% 30.5% 26.0% 25.3%
Adjusted effective tax rate 23.6% 24.9% 23.8% 26.0%
Three Months and Half Year Ended 30 September
PAGE
NON-US GAAP FINANCIAL MEASURES
44
Adjusted EBITDA excluding Asbestos
US$ Millions
Q2'18 Q2'17 1H'18 1H'17
EBIT 97.1$ 88.5$ 181.1$ 206.3$
Depreciation and amortization 23.4 20.4 45.2 39.9
Adjusted EBITDA 120.5$ 108.9$ 226.3$ 246.2$
Asbestos:
Asbestos adjustments 6.6 17.2 10.5 (3.4)
AICF SG&A expenses 0.4 0.4 0.8 0.8
Adjusted EBITDA excluding Asbestos 127.5$ 126.5$ 237.6$ 243.6$
Three Months and Half Year Ended 30 September
Adjusted selling, general and administrative expenses ("Adjusted SG&A")
US$ Millions
Q2'18 Q2'17 1H'18 1H'17
SG&A expens s 75 0$ 69 1$ 148 5$ 141 1$
Excluding:
AICF SG&A expenses (0.4) (0.4) (0.8) (0.8)
Adjusted SG&A expenses 74.6$ 68.7$ 147.7$ 140.3$
Net sales 525.8$ 495.8$ 1,033.5$ 973.5$
SG&A expenses as a percentage of net sales 14.3% 13.9% 14.4% 14.5%
Adjusted SG&A expenses as a percentage of net
sales
14.2% 13.9% 14.3% 14.4%
Three Months and Half Year Ended 30 September
Q2 FY18 MANAGEMENT PRESENTATION
09 November 2017