Q3 FY18 MANAGEMENT PRESENTATION
02 February 2018
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; the
consummation of the Fermacell acquisition and integration of Fermacell into our business; 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 Update – Louis Gries, CEO
• Overview and Operating Review – Louis Gries, CEO
• Financial Review – Matt Marsh, EVP and CFO
• Questions and Answers
5
FERMACELL UPDATE
Louis Gries, CEO
PAGE
Fermacell: Integration Update
Manufacturing
R&D
Headquarters
November 2017
• Entered into Purchase
Agreement for €473 million
(~ US$549 million)
December 2017
-March 2018
• Bridge loan facility of €525.0
secured to fund acquisition
• Due diligence and integration
planning going as planned
• Customary closing procedures
March 2018
• Acquisition on target for
completion in Q4FY18
7
Countries with own
salesforce (exl. UAE)
OVERVIEW AND OPERATING REVIEW
Louis Gries, CEO
PAGE
GROUP OVERVIEW
9
• Higher volumes and net sales in North America Fiber Cement and International Fiber Cement segments
• Higher average net sales price in North America Fiber Cement segment
• North America Fiber Cement: YTD EBIT margin of 23.8%; manufacturing stabilizing, volume improving
• International Fiber Cement: YTD EBIT margin of 23.6%; strong performance
1 Excludes Asbestos related expenses and adjustments, loss on early debt extinguishment and tax adjustments
2 Excludes Asbestos related expenses and adjustments
Adjusted Net Operating Profit1 Adjusted Diluted EPS1
3rd Qtr Nine Months 3rd Qtr Nine Months
US$69.9M 33% US$205.5M 6% US16 cents 33% US47 cents 7%
Adjusted EBIT 2 Net Operating Cash Flow
3rd Qtr Nine Months Nine Months
US$97.4M 33% US$289.8M 5% US$239.4M 10%
Adjusted EBIT Margin % 2
3rd Qtr Nine Months
19.7% 3.5 pts 19.0% 0.4 pts
PAGE
NORTH AMERICA FIBER CEMENT SUMMARY
Volume
• FY17 capacity constraint dampened FY18 demand
• Marginal volume growth … Exterior volume in line with
market index growth for the quarter
Price
• Favorably impacted by annual change in our strategic
pricing effective April 2017; and tactical pricing strategies
EBIT
• EBIT for the quarter increased compared to pcp:
• Higher average net sales price and improved plant
performance
• Partially offset by higher input and freight costs
• EBIT for the nine months increased compared to pcp:
• Higher average net sales price, partially offset by
higher production costs
10
Q3'18 9 Months FY18
Net Sales US$376.8M US$1,168.0M
7% 6%
Sales Volume 528.9 mmsf 1,652.0 mmsf
2% 1%
Average Price US$705 per msf US$700 per msf
5% 5%
EBIT US$101.3M US$278.5M
34% 4%
PAGE
NORTH AMERICA DELIVERED UNIT COST
11
Delivered unit cost improved quarter to quarter throughout FY18
• Improvements in manufacturing inefficiencies and production cost
• Experiencing higher input costs
PAGE
0
5
10
15
20
25
30
0
20
40
60
80
100
120
FY13 FY14 FY15 FY16 FY17 FY18
EBI
T M
arg
in
EBI
T U
S$M
Quarterly EBIT and EBIT Margin1
EBIT EBIT/Sales
NORTH AMERICA FIBER CEMENT
12
YTD EBIT Margin % in target range, but down 40 bps to
23.8% compared to pcp
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
13
• Strategic price increase effective April 2017
• Satisfied with tactical pricing and price positioning
• US housing conditions remain favorable
• New construction starts continue modest single-
digit 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
700
550
590
630
670
710
FY12 FY13 FY14 FY15 FY16 FY17 9 Months
FY18
US
$
pe
r M
SF
Average Net Sales Price
PAGE 14
Volume
• Growth primarily in our Australian and Philippines
businesses
Lower average selling price compared to pcp
• Favorably impacted by modest annual changes in
strategic pricing in Australia
• Adversely impacted by tactical pricing strategies and
volume growth in the Philippines
EBIT
• Strong result in our Australian business. Higher market
penetration and improved manufacturing performance
INTERNATIONAL FIBER CEMENT SUMMARY
Q3'18 9 Months FY18
Net Sales US$114.5M US$349.2M
15% 13%
Sales Volume 131.7 mmsf 399.8 mmsf
14% 11%
Average Price US$773 per msf US$775 per msf
2% 1%
EBIT US$25.4M US$82.4M
16% 15%
PAGE
INTERNATIONAL FIBER CEMENT (USD)
15
Australia
• Strong market and PDG performance
• EBIT favorably impacted by volume, price and
manufacturing performance
New Zealand
• Higher net sales driven by higher volume
• Q3 EBIT unfavorably impacted by plant performance
Philippines
• Tactical pricing and foreign translation unfavorably
impacted EBIT
• Nine months EBIT higher in local currency
Europe
• Lower volume in certain regions
• EBIT favorably impacted by lower SG&A expenses
Volume Net Sales EBIT Volume Net Sales EBIT
Australia
Q3'18 9 Months FY18
Australia
Volume Net Sales EBIT Volume Net Sales EBIT
FLAT
9 Months FY18
New Zealand
Q3'18
New Zealand
Volume Net Sales EBIT Volume Net Sales EBIT
Philippines
9 Months FY18Q3'18
Philippines
Volume Net Sales EBIT Volume Net Sales EBIT
Europe
9 Months FY18
Europe
Q3'18
FINANCIAL REVIEW
Matt Marsh, EVP and CFO
PAGE
Net sales increased 9%
• Higher average net sales price and volume in the North
America Fiber Cement segment
• Strong volume growth in International Fiber Cement
Gross profit increased 18%, gross margin % up
270 bps
SG&A expenses increased 4%
• SG&A expenses as a percentage of sales decreased 70 bps
Adjusted net operating profit increased 33%
• North America Fiber Cement segment EBIT increased 34%
versus pcp
• International Fiber Cement segment EBIT increased 16%
versus pcp
RESULTS – 3rd QUARTER FY18
17
1 Excludes Asbestos related expenses and adjustments
2 Excludes Asbestos related expenses and adjustments, loss on early debt
extinguishment and other tax adjustments
US$ Millions Q3'18 Q3'17 % Change
Net sales 495.1 453.8 9
Gross profit 182.9 155.0 18
SG&A expenses (77.7) (74.6) (4)
EBIT 143.9 108.7 32
Net operating
profit
79.9 87.9 (9)
Adjusted EBIT
1 97.4 73.5 33
Adjusted net
operating profit
2 69.9 52.6 33
Three Months Ended 31 December
PAGE
Net sales increased 7%
• Higher average net sales price in the North America
Fiber Cement segment
• Strong volume growth in the International Fiber Cement
Gross profit increased 5%, gross margin %
down 70 bps
SG&A expenses increased 5%
• SG&A expenses as a percentage of sales decreased 30
bps
Adjusted net operating profit increased 6%
• North America Fiber Cement segment EBIT increased
4% versus pcp
• International Fiber Cement Segment EBIT increased
15% versus pcp
RESULTS – NINE MONTHS FY18
18
US$ Millions
9 Months
FY18
9 Months
FY17
% Change
Net sales 1,528.6 1,427.3 7
Gross profit 539.1 513.9 5
SG&A expenses (226.2) (215.7) (5)
EBIT 325.0 315.0 3
Net operating
profit
203.7 232.0 (12)
Adjusted EBIT
1 289.8 277.2 5
Adjusted net
operating profit
2 205.5 194.0 6
Nine Months Ended 31 December
1 Excludes Asbestos related expenses and adjustments
2 Excludes Asbestos related expenses and adjustments, loss on early debt
extinguishment and other tax adjustments
PAGE
1 As Reported 9 Months FY18 figures converted using 9 Months FY17 weighted average exchange rates
2 Reflects the difference between 9 Months FY18 As Reported and 9 Months FY18 using 9 Mo ths FY17 weighted average exchange rates
CHANGES IN AUD vs. USD
19
$ Favorable
(Unfavorable)
%
3.4 -
1.5 -
1.1 t 1%
(2.3) u 1%
Translation Impact 2
US$ Millions
9 Months
FY18
9 Months
FY17
% Change
9 Months
FY18
% Change
Net sales $ 1,528.6 1,427.3 t 7% $ 1,525.2 t 7%
Gross profit 539.1 513.9 t 5% 537.6 t 5%
Adjusted EBIT 289.8 277.2 t 5% 288.7 t 4%
Adjusted net operating profit $ 205.5 194.0 t 6% $ 207.8 t 7%
As Reported
Excluding Translation
Impact 1
PAGE
NORTH AMERICA INPUT COSTS
• Freight market prices increased 21%
compared to pcp
• The price of NBSK pulp increased 19%
compared to pcp
• Electricity prices are up 9% compared to pcp
• Cement prices continue to rise, up 5%
compared to pcp
• Gas prices are down 5% compared to pcp
20
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 Q3’18 are based on Q2’18 actuals
0
1
2
3
4
5
6
7
8
9
10
0
200
400
600
800
1,000
1,200
1,400
Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
Ce
m
en
t, Gas
, E
le
ct
ric
a
nd
Fr
ei
gh
t P
ric
es
Pu
lp
P
ric
es
Quarterly US Input Costs
PULP GAS ELECTRIC CEMENT FREIGHT
PAGE
North America Fiber Cement EBIT summary
• Q3 EBIT increased 34% and nine months EBIT
increased 4% compared to pcp
• Quarter increase primarily driven by higher net sales
and lower production costs
• Nine months increase primarily driven by higher net
sales price, partially offset by higher production cost
SEGMENT EBIT – 3rd QUARTER and NINE MONTHS FY18
21
International Fiber Cement EBIT summary
• Q3 EBIT increased 16% and nine months EBIT increased
15% compared to pcp
• Strong volume growth in Australia and the Philippines
• Favorable conditions in our addressable markets and
increased market penetration in Australia during the year
84.4 75.5
101.3
266.8 267.8 278.5
0
50
100
150
200
250
300
FY16 FY17 FY18
US
$
M
ill
io
ns
North America Fiber Cement
Q3 EBIT
9 months
16.2
21.9
25.4
58.4
71.5
82.4
0
15
30
45
6
75
9
FY16 FY17 FY18
US
$
M
ill
io
ns
International Fiber Cement
Q3 EBIT
9 months
PAGE
Other Businesses
• Additional investments in product and manufacturing
capabilities
R&D
• On strategy to invest 2-3% of net sales
• Increased spend for Other Businesses segment, and
overall increase in number of projects
General Corporate Costs
• Higher discretionary spend and increase in foreign
exchange losses during the nine months, partially offset by
the gain on the sale of a storage building near our Fontana
facility in Q1 FY18
SEGMENT EBIT – 3rd QUARTER and NINE MONTHS FY18
22
1
Excludes Asbestos related expenses and adjustments
(2.1) (2.1) (1.9)
(6.2)
(4.7)
(5.8)
(7)
(6)
(5)
(4)
(3)
(2)
(1)
0
FY16 FY17 FY18
US
$
Mi
lli
on
s
Other Businesses
Q3 EBIT
9 months
(5.5) (6.2)
(7.2)
(17.5) (18.3)
(20.5)
(25)
(20)
(15)
(10)
(5)
0
FY16 FY17 FY18
US
$
Mi
lli
on
s
Research and Development
Q3 EBIT
9 months
(11.4)
(15.6)
(20.2)
(35.0)
(39.1)
(44.8)
5
(40
(3 )
(20)
(10)
0
FY16 FY17 FY18
US
$
Mi
lli
on
s
General Corporate Costs
1
Q3 EBIT
9 months
PAGE
1 Includes Asbestos adjustments, AICF SG&A expenses and net AICF interest (income) expense
2 Excludes tax effects of Asbestos, loss on early debt extinguishment and other tax adjustments
23.1% estimated adjusted effective tax rate for
the year
• YTD Adjusted income tax expense decrease driven
by a reduction of the US tax rate
• 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
23
US$ Millions Q3’18 Q3’17
9 Months
FY18
9 Months
FY17
Operating profit before taxes 110.1 102.9 277.5 295.9
Asbestos adjustments
1 (46.8) (35.0) (36.2) (37.0)
Loss on early debt extinguishment 26.1 - 26.1 -
Adjusted operating profit
before income taxes
89.4 67.9 267.4 258.9
Adjusted income tax expense
2 (19.5) (15.3) (61.9) (64.9)
Adjusted effective tax rate 21.8% 22.5% 23.1% 25.1%
Income tax expense (30.2) (15.0) (73.8) (63.9)
Income taxes paid 33.7 42.4
Income taxes pay ble 31.0 5.7
Three Months and Nine Months Ended 31 December
PAGE
US INCOME TAX REFORM
24
US Tax Cuts and Jobs Act enacted 22
December 2017
• Provisional charge to income tax expense of
US$2.5 million comprising:
• Estimated US$32.5 million on deemed
repatriated earnings
• Partially offset by an estimated US$30.0
million revaluation of our US-based net
deferred tax liabilities, as a result of the
lowered US federal income tax rate
• Impact of US Tax Reform on future earnings is
currently uncertain
1 Excludes Asbestos related expenses and adjustments, loss on early debt extinguishment and tax adjustments
Impact from US Tax Reform
Income tax expense
3rd Qtr Nine Months
US$2.5M 9% US$2.5M 4%
Adjusted Net Operating Profit1
3rd Qtr Nine Months
US$2.5M 3% US$2.5M 1%
Net Operating Cash Flow
Nine Months
US$2.5M 1%
PAGE
1
CASHFLOW
25
Decrease in net operating cash flow
• Building inventory levels
• Increase in the payment to AICF
Higher investing activities
• Increase in capacity expansion related capital expenditures
• Includes proceeds from the sale of a storage building near
our Fontana facility
Cash provided by financing activities
• Driven by net proceeds of our senior unsecured notes
• Partially offset by associated call redemption premium,
debt issuance and lower share buyback activity
1 Excludes AP related to capital expenditures
2 Includes capitalized interest
3 Distinct from the term defined by the AFFA for purposes of calculating our annual contribution to AICF
4 Includes debt issuance costs
US$ Millions
9 Months
FY18
9 Months
FY17
Change
(%)
Net Income 203.7 232.0 (12)
Adjustment for non-cash items 62.1 50.5 23
Annual AICF contribution (102.2) (91.1) (12)
Operating working capital
1 10.0 75.3 (87)
Other net operating activities 65.8 (0.9)
Cash Flow from Operations 239.4 265.8 (10)
Purchases of property, plant and equipment
2 (151.9) (60.1)
Proceeds from sale of property, plant and
equipment
7.9 -
Free Cash Flow
3 95.4 205.7 (54)
Dividends paid (131.3) (130.2) (1)
Net repayments of credit facilities (175.0) (80.0)
Net proceeds from senior unsecured notes
4 386.1 75.6
Call redemptio premium paid to note holders (19.5) -
Share related activities 0.2 (96.6)
Free Cash Flow after Financing Activities 155.9 (25.5)
PAGE
CAPITAL EXPENDITURES
• YTD CAPEX spend of US$148.8 million increased
US$90.3 million compared to pcp
• North America capacity projects during Q3 FY18:
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 commissioning 1H FY20
• Continued to expand capacity at our Philippines facility,
expected to be completed in Q4 FY18
• Announced A$28.5 million brownfield expansion project
at our Carole Park facility in Australia, expected to be
commissioned by Q1 FY21
0
10
20
30
40
50
60
70
Q1
FY17
Q2
FY17
Q3
FY17
Q4
FY17
Q1
FY18
Q2
FY18
Q3
FY18
U
S
$
M
il
li
o
n
s
CAPEX Spend
Cap city M intenance & Other
26
PAGE
FINANCIAL MANAGEMENT SUPPORTING GROWTH
27
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:
Cyclical market volatility
Accretive and strategic
inorganic opportunities
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$800 million senior
unsecured notes at Q3 FY18
Weighted average maturity of
5.0 years on bank debt; 7.2
years on total debt at Q3 FY18
€525m / US$627.4m bridge
finance available to fund
Fermacell acquisition
Financial management consistent with investment grade credit
Ability to withstand market cycles and other unanticipated events
Moody’s S&P Fitch
Ba1
affirmed Nov’17
outlook stable
BB
affirmed Nov’17
outlook stable
BBB-
affirmed Nov’17
outlook stable
PAGE
LIQUIDITY PROFILE
28
Strong balance sheet
US$231.3 million cash
US$552.6 million net debt 3 at 31 December 2017
100% liquidity on bank debt at 31 December 2017
Corporate debt structure
US$400 million 4.75% senior unsecured notes
maturing January 2025
US$400 million 5.00% senior unsecured notes
maturing January 2028
US$500 million unsecured revolving credit facility,
with a December 2022 maturity
€525m (US$627.4m) bridge finance available2
Leverage strategy
1.22x net debt to Adjusted EBITDA excluding
asbestos; within the 1-2x leverage target range
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 On 13 December 2017, a 364-day term loan bridge facility was executed to facilitate
the Fermacell acquisition. The facility limit is €525 million, or $627.4 million
equivalent at 31 December 2017. The facility was undrawn at 31 December 2017
3 Includes debt issuance costs ($16.2 million)
PAGE
REDEMPTION OF 2023 SENIOR UNSECURED NOTES
29
$19.5m
28-Dec-17 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Cumulative interest saved by replacing 5.875% notes with 4.75% Redemption Premium
Benefit of 2-
Year Tenor
Extension
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$267 million and US$278 million
• Management expects full year Adjusted net operating profit to be between US$260 million and
US$275 million assuming, among other things, housing conditions in the United States continue to improve
in line with our assumed forecast of new construction starts between approximately 1.2 and 1.3 million,
input prices remain consistent and an average USD/AUD exchange rate that is at or near current levels for
the remainder of the year
• Management cautions that although US housing activity has been improving, market conditions remain
somewhat uncertain and some input costs remain volatile. Management is unable to forecast the
comparable US GAAP financial measure due to uncertainty regarding the impact of actuarial estimates on
asbestos-related assets and liabilities in future periods
30
QUESTIONS
APPENDIX
PAGE
FINANCIAL SUMMARY
1 Excludes Asbestos related expenses and adjustments
2 Excludes AICF interest income/expense
33
US$ Millions Q3'18 Q3'17 % Change
9 Months
FY18
9 Months
FY17
% Change
Net Sales
North America Fiber Cement 376.8$ 350.9$ 7 1,168.0$ 1,105.7$ 6
International Fiber Cement 114.5 99.5 15 349.2 309.0 13
Other Businesses 3.8 3.4 12 11.4 12.6 (10)
Total Net Sales 495.1$ 453.8$ 9 1,528.6$ 1,427.3$ 7
EBIT
North America Fiber Cement 101.3$ 75.5$ 34 278.5$ 267.8$ 4
International Fiber Cement 25.4 21.9 16 82.4 71.5 15
Other Businesses (1.9) (2.1) 10 (5.8) (4.7) (23)
Research & Development (7.2) (6.2) (16) (20.5) (18.3) (12)
General Corporate
1
(20.2) (15.6) (29) (44.8) (39.1) (15)
Adjusted EBIT 97.4$ 73.5$ 33 289.8$ 277.2$ 5
Net interest expense
2 (8.6) (7.0) (23) (22.6) (19.5) (16)
Other income 0.6 1.4 (57) 0.2 1.2 (83)
Adjusted income tax expense (19.5) (15.3) (27) (61.9) (64.9) 5
Adjusted net operating profit 69.9$ 52.6$ 33 205.5$ 194.0$ 6
Three Months and Nine Months Ended 31 December
PAGE
ASBESTOS CLAIMS DATA
34
• Quarter and nine months claims received were 9%
below and in line with actuarial estimates,
respectively
• Quarter and nine months claims received
decreased 8% and increased 1%, respectively,
compared to pcp
• Mesothelioma claims reported during the nine
months:
• 8% above actuarial estimates
• 7% higher than pcp
• Average claim settlement for the nine months was
8% 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
131 144 143
433 432 428
Q3'18
Actuals
Q3'18
A tuarial
Estimates
Q3'17
Actuals
9 Months
FY18
Actuals
9 Months
FY18
Actuarial
Estimates
9 Months
FY17
Actuals
Claims Received
254,000
283,000
195,000
261,000
283,000
215,000
Q3'18
Actuals
Q3'18
Actuarial
Estimates
Q3'17
Actuals
9 Months
FY18
Actuals
9 Months
FY18
Actuarial
Estimates
9 Months
FY17
Actuals
Average Claim Settlement (A$)1
PAGE
DEPRECIATION AND AMORTIZATION
35
US$ Millions
Q3'18 Q3'17 9 Months FY18 9 Months FY17
Depreciation and amortization
North America Fiber Cement 18.8$ 17.8$ 54.1$ 48.0$
International Fiber Cement 3.1 3.0 9.5 8.9
Other Businesses 0.5 0.6 1.6 1.7
Research and Development 0.3 0.5 1.1 1.4
General Corporate 0.7 0.7 2.3 2.5
Total depreciation and amortization 23.4$ 22.6$ 68.6$ 62.5$
Three Months and Nine Months Ended 31 December
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
36
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:
37
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
38
Adjusted EBIT
US$ Millions
Q3'18 Q3'17 9 Months FY18 9 Months FY17
EBIT 143.9$ 108.7$ 325.0$ 315.0$
A b stos:
Asbestos adjustments (47.0) (35.6) (36.5) (39.0)
AICF SG&A expenses 0.5 0.4 1.3 1.2
Adjusted EBIT 97.4$ 73.5$ 289.8$ 277.2$
Net sales 495.1$ 453.8$ 1,528.6$ 1,427.3$
Adjusted EBIT margin 19.7% 16.2% 19.0% 19.4%
Three Months and Nine Months Ended 31 December
Adjusted net operating profit
US$ Millions
Q3'18 Q3'17 9 Months FY18 9 Months FY17
Net operating profit 79.9$ 87.9$ 203.7$ 232.0$
sbe tos:
Asbestos adjustments (47.0) (35.6) (36.5) (39.0)
AICF SG&A expenses 0.5 0.4 1.3 1.2
AICF interest (income) expense, net (0.3) 0.2 (1.0) 0.8
Loss on early debt extinguishment 26.1 - 26.1 -
Asbestos, loss on early debt extinguishment and
other tax adjustments 10.7 (0.3) 11.9 (1.0)
Adjusted net operating profit 69.9$ 52.6$ 205.5$ 194.0$
Three Months and Nine Months Ended 1 December
PAGE 39
NON-US GAAP FINANCIAL MEASURES
Adjusted diluted earnings per share
Q3'18 Q3'17 9 Months FY18 9 Months FY17
Adjusted net operating profit (US$ Millions) 69.9$ 52.6$ 205.5$ 194.0$
Weighted average common shares outstanding -
Diluted (millions)
442.0 441.6 441.7 444.8
Adjusted diluted earnings per share (US cents) 16 12 47 44
Three Months and Nine Months Ended 31 December
Adjusted effective tax rate
US$ Millions
Q3'18 Q3'17 9 Months FY18 9 Months FY17
Operating profit before income taxes 110.1$ 102.9$ 277.5$ 295.9$
Asbestos:
Asbestos adjustments (47.0) (35.6) (36.5) (39.0)
AICF SG&A expenses 0.5 0.4 1.3 1.2
AICF interest (income) expense, net (0.3) 0.2 (1.0) 0.8
Loss on early debt extinguishment 26.1 - 26.1 -
j ste operating profit before income taxes 89.4$ 67.9$ 267.4$ 258.9$
Income tax expense (30.2)$ (15.0)$ (73.8)$ (63.9)$
Asbestos, loss on early debt extinguishment and
other tax adjustments 10.7 (0.3) 11.9 (1.0)
Adjusted income tax expense (19.5)$ (15.3)$ (61.9)$ (64.9)$
Effective tax rate 27.4% 14.6% 26.6% 21.6%
Adjusted effective tax rate 21.8% 22.5% 23.1% 25.1%
Three Months and Nine Months Ended 31 December
PAGE
NON-US GAAP FINANCIAL MEASURES
40
Adjusted EBITDA excluding Asbestos
US$ Millions
Q3'18 Q3'17 9 Months FY18 9 Months FY17
EBIT 143.9$ 108.7$ 325.0$ 315.0$
Depreciation and amortization 23.4 22.6 68.6 62.5
Adjusted EBITDA 167.3$ 131.3$ 393.6$ 377.5$
Asbestos:
Asbestos adjustments (47.0) (35.6) (36.5) (39.0)
AICF SG&A expenses 0.5 0.4 1.3 1.2
Adjusted EBITDA excluding Asbestos 120.8$ 96.1$ 358.4$ 339.7$
Three Months and Nine Months Ended 31 December
Adjusted selling, general and administrative expenses ("Adjusted SG&A")
US$ Millions
Q3'18 Q3'17 9 Months FY18 9 Months FY17
SG&A expens s 77 7$ 74 6$ 226 2$ 215 7$
Excluding:
AICF SG&A expenses (0.5) (0.4) (1.3) (1.2)
Adjusted SG&A expenses 77.2$ 74.2$ 224.9$ 214.5$
Net sales 495.1$ 453.8$ 1,528.6$ 1,427.3$
SG&A expenses as a percentage of net sales 15.7% 16.4% 14.8% 15.1%
Adjusted SG&A expenses as a percentage of net
sales
15.6% 16.4% 14.7% 15.0%
Three Months and Nine Months Ended 1 December
Q3 FY18 MANAGEMENT PRESENTATION
02 February 2018