Exhibit 99.5 James Hardie Industries plc Europa House 2nd Floor, Harcourt Centre 24 August 2020 Harcourt Street, Dublin 2, D02 WR20, Ireland T: +353 (0) 1 411 6924 The Manager F: +353 (0) 1 479 1128 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Australian Annual Review for Fiscal Year 2020 James Hardie announced today that it has filed the Australian Annual Review relating to fiscal year 2020 with the ASX. Copies of this document are available on James Hardie’s investor relations website at www.ir.jameshardie.com.au. Shareholders who wish to receive a hard copy of the Australian Annual Review free of charge should contact the company’s investor relations office on +61 2 8845 3356. Alternatively, shareholders can forward their request by email, including their mailing details to: [email protected] Yours faithfully Joseph C. Blasko General Counsel, Chief Compliance Officer and Company Secretary This announcement has been authorised for release by the General Counsel, Chief Compliance Officer and Company Secretary, Mr Joseph C. Blasko. James Hardie Industries plc is a limited liability company incorporated in Ireland with its registered office at Europa House 2nd Floor, Harcourt Centre, Harcourt Street, Dublin 2, D02 WR20, Ireland. Directors: Michael Hammes (Chairman, USA), Brian Anderson (USA), Russell Chenu (Australia), Andrea Gisle Joosen (Sweden), David Harrison (USA), Persio Lisboa (USA), Anne Lloyd (USA), Moe Nozari (USA), Rada Rodriguez (Sweden), Nigel Stein (UK), Harold Wiens (USA). Chief Executive Officer and Director: Jack Truong (USA) Company number: 485719 ARBN: 097 829 895
ANNUAL REVIEW FISCAL 2020 1 APRIL 2019 – 31 MARCH 2020 CREATING A NEW HARDIE
CONTENTS Operations overview 2 Results at a glance 4 Chairman’s message 6 CEO’s report 8 Sustainability overview 12 Shareholder information 36
JAMES HARDIE IS AN INNOVATIVE, CUSTOMER-FOCUSED COMPANY. James Hardie understands building professionals and serves them with innovative building products and solutions. As the world’s largest manufacturer and marketer of fiber cement and fiber gypsum, James Hardie empowers its people to innovate and capitalize on the company’s global scale. Always driven to find a better way to build, James Hardie applies a continuous improvement mindset to research and development, manufacturing and sales. This powers consistent growth above market and strong returns while delivering value to customers and shareholders, and motivating employees around the world. The result isn’t just growth above market and strong returns; it’s better buildings and stronger communities. James Hardie helps inspire and deliver beautifully designed homes that are more durable, more functional, and easier to build. The improvement in liveability and streetscape aesthetics benefit homeowners and communities, alike. 2020 Annual Review 1
OPERATIONS OVERVIEW In fiscal year 2020 we continued our significant transformation while creating considerable value for our investors, customers, employees and the communities in which we operate. GROUP NORTH AMERICA FIBER CEMENT NET SALES NET SALES $2,607M $1,816M 4% from 2019 8% from 2019 North America $1,816M EBIT 2 EBIT MARGIN 2 Asia Pacific $418M Europe $371M $471M 25.9% Other $1M 21% from 2019 2.8pts from 2019 EBIT 2 EBIT MARGIN 2 GROSS PROFIT AVERAGE NET SALES PRICE $487M 18.7% 17% $725per msf 20% from 2019 2.6pts from 2019 from 2019 1% from 2019 ADJUSTED CASHFLOW FROM SALES VOLUME NOPAT 1 OPERATING ACTIVITIES mmsf $353M $451M 2,482 8% from 2019 17% from 2019 48% from 2019 Please refer to the inside back cover for full footnote references. 2 Unless otherwise stated all items denoted are in US currency.
Our substantial investments in our people, manufacturing operations, market development programs, and market-driven innovation have enabled James Hardie to further advance our industry leadership position and create sustainable, profitable growth. KEY Research & Development Manufacturing Facilities ASIA PACIFIC FIBER CEMENT EUROPE BUILDING PRODUCTS NET SALES NET SALES $418M $371M 6% from 2019 1% from 2019 EBIT 2 EBIT MARGIN 2 EBIT 2 EBIT MARGIN 2 $95M 22.7% $17M 4.5% 5% from 2019 0.4pts from 2019 67% from 2019 1.8pts from 2019 GROSS PROFIT AVERAGE NET GROSS PROFIT AVERAGE NET SALES PRICE SALES PRICE 5% $700per msf 1% $345per msf from 2019 3% from 2019 from 2019 3% from 2019 SALES VOLUME SALES VOLUME 533mmsf 828mmsf 2% from 2019 1% from 2019 2020 Annual Review 3
RESULTS AT A GLANCE SUSTAINABLE AND PROFITABLE GROWTH ADJUSTED NET NET SALES ADJUSTED ADJUSTED OPERATING EBIT 2 DILUTED EARNINGS PROFIT 1 PER SHARE 1 $353M $2,607M $487M 79 cents 353 2,607 487 79 2,507 301 68 291 398 405 66 2,055 1,922 351 354 243 249 56 1,728 54 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 NORTH AMERICA DIVIDENDS PAID ADJUSTED RETURN GLOBAL EBIT MARGIN 2 PER SHARE ON CAPITAL EMPLOYEES 2 EMPLOYED 26% 36 cents 31% 4,869 26 58 26 31 4,916 4,869 31 31 24 29 23 23 28 3,960 40 3,577 39 38 36 3,257 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 Please refer to the inside back cover for full footnote references. Unless otherwise stated all items denoted are in US currency. 4
GLOBAL STRATEGY Our global strategy is to deliver organic growth above market with strong returns and to be #1 in every market we choose to participate in. This strategy begins with the foundation of Zero Harm; we are committed to safe people, safe places and safe systems. The culture of our global company and employee engagement is also critical to our success. We are cultivating an engaged workforce that is empowered and accountable, that works cross functionally, shares and replicates best-practices, and maintains a global and continuous improvement mindset. Our global strategy is underpinned by four clear strategic pillars: • Full Hardie Exterior • Expand Interior Business • Innovation • Lean Manufacturing. Organic growth above market with strong returns Be #1 in every market we choose to participate in Full Expand Lean Hardie Interior Innovation Manufac‑ Exterior Business turing Culture and employee engagement Build On Organizational Thrive On Advantage Competition Empowerment PDCA Continuous Global Mindset and accountability Improvement Mindset Embrace Step Operate Change With Respect Cross Functional Best Practice Future Forward Planning Teamwork Sharing and Replication for Predictable Results ZERO HARM 2020 Annual Review 5
CHAIRMAN’S MESSAGE Since the crisis began, the Board and Executive Leadership Team have been focused on relentlessly reviewing and evaluating the challenges and opportunities ahead. Our business continuity plan is critical as we know that our ability to continue to operate our manufacturing facilities in a safe and compliant way is an important part of how we as a company are able to serve our customers and subsequently support the overall well-being of our employees and key stakeholders. We also remain committed to maintaining a strong and flexible balance sheet. Our continued strong profitable sales performance, along with our quick and decisive capital management and working capital actions, helped increase our liquidity position to US$693 million as of 30 June 2020. While it’s very difficult to forecast the full global impact and duration of this unprecedented pandemic, the significant progress Jack and his team have made on the company’s transformation to become an even stronger, truly global business has ensured that we entered this crisis well positioned. Jack and his leadership team have the Board’s full support to successfully navigate James Hardie through this unprecedented time and we are confident that we will emerge even stronger. FISCAL YEAR 2020 OPERATING RESULTS We began fiscal year 2020 by continuing our transformation to drive James Hardie’s next phase of sustainable and profitable growth. By the end of the year we had made significant progress on our strategic plan to drive organic growth above market, deliver strong returns, and be number one in every market we choose to participate in. Our North America segment achieved 8% top line growth and adjusted EBIT margin of 25.9%. We achieved strong growth above market as our commercial transformation James Hardie was well gains traction, while delivering exceptional returns as our Lean manufacturing initiative continued to generate improved prepared and positioned performance across our North American manufacturing when we entered this network. We entered fiscal year 2021 with significant momentum in both our commercial and Lean initiatives, albeit unprecedented crisis. in a rapidly evolving and highly volatile market and economy. We are confident we will During fiscal year 2020 we allocated capital to position our North America manufacturing network for the future. emerge even stronger. We completed the start-up of our greenfield expansion project in Tacoma (Washington) and we continued the construction of a greenfield expansion project in Prattville (Alabama). During this time of global stress and uncertainty, management strength and experience is critical. In Jack Truong and his Our Asia Pacific segment once again provided good returns Executive Leadership Team, we have strong and capable during fiscal year 2020, delivering an adjusted EBIT margin of leadership, along with a deep understanding of James Hardie, 22.7%. During fiscal year 2020, we completed the brownfield our customers and the markets in which we operate. expansion project at our Carole Park (Australia) plant. 6
The global COVID-19 crisis has brought extraordinary challenges BOARD CHANGES in the way we manage our lives, We also remain committed to ensuring we have a our health and our businesses.” strong, diverse and independent Board. During fiscal year 2020 we added three new directors who each bring strong business experience and valuable Our Europe Building Products segment delivered net perspective to James Hardie. “sales growth of 5% in Euros, driven by fiber cement growth Moe Nozari was appointed to the Board on of 32% and fiber gypsum growth of 2%, and an adjusted 6 November 2019. Moe was employed by 3M EBIT margin of 8.2% for fiscal year 2020. The strong growth Company for 38 years and while there his focus in fiber cement net sales was driven by market penetration was on the development of new products, in our existing geographies. brands, identification and the development of people. Moe brings considerable experience CHIEF FINANCIAL OFFICER (“CFO”) in new product development and innovation. APPOINTMENT Nigel Stein was appointed to the Board on 14 May 2020. Nigel has extensive experience in On 26 February 2020 Jason Miele was appointed Senior Vice the global automotive and manufacturing sectors. President and CFO of James Hardie. Jason was previously He currently serves as Chairman of Inchcape plc, our Vice President, Investor Relations, and brings a strong an automotive distribution, retail and financing track record of financial and business leadership, as well company; a position he has held since May 2018. as an in-depth knowledge of the James Hardie business. Nigel joined Inchcape as a non-executive director His financial skills, international experience and leadership in October 2015 and brings significant international, attributes complement our strong performance-oriented manufacturing and financial experience. culture and made him the right choice to lead our finance organization during this critical time as we navigate the Harold Wiens was appointed to the Board on COVID-19 crisis and execute on our global strategic plan. 14 May 2020. Harold worked at 3M Company for 38 years and brings a wealth of experience with The Board would like to acknowledge and thank Anne Lloyd, proven results in driving global business growth who is also a member of the Board of Directors of James with a strong focus on operational experience. Hardie, for her service as Interim CFO during this transition. Anne’s oversight during this interim period provided us the Moe, Nigel and Harold will stand for election opportunity to conduct a comprehensive search for a new at the 2020 Annual General Meeting (AGM) CFO, considering both internal and external candidates, and are all valuable additions to the Board. ensuring we identified the best leader. On 9 August 2019, at the conclusion of the 2019 AGM, Alison Littley and Rudolf van SHAREHOLDER RETURNS der Meer retired as non-executive directors. On 5 May 2020, to further strengthen James Hardie’s liquidity The retirements were part of the Board’s position and to manage market volatility, we announced the succession plan. The Board expresses its immediate suspension of dividends until further notice. thanks to Ms Littley and Mr van der Meer for their valued contribution to James Hardie Prior to the COVID-19 pandemic, our underlying confidence and wishes them both well in their retirement. in the strength of our businesses enabled the Board to declare a first half dividend of US10.0 cents in November 2019. The first half ordinary dividend declared was US$44.3 million, reflecting a payment of US10.0 cents per security, which was in‑line with the first half ordinary dividend ANNUAL GENERAL MEETING declared and paid for in fiscal year 2019 of US$44.2 million, reflecting a payment of US10.0 cents per security. This year’s AGM will be held in November 2020 on a date and from a location that is dependent upon the relevant ASBESTOS INJURIES COMPENSATION travel restrictions in place due to the COVID-19 pandemic. FUND (AICF) Shareholders can participate via a teleconference. Details regarding the matters to be acted upon at the 2020 AGM will Due to our strong financial performance during fiscal year 2020, be contained in the Notice of Meeting and related materials. we anticipate we will contribute approximately US$153.3 million to the AICF during fiscal year 2021. This amount represents 35% of our free cash flow for fiscal year 2020 which we are obliged to contribute as part of our commitment under the Amended and Restated Final Funding Agreement. Michael Hammes Including this contribution, we will have provided approximately Chairman A$1.6 billion towards asbestos disease-related compensation since the AICF was established in February 2007. 2020 Annual Review 7
CEO’S REPORT During fiscal year 2020 we made significant progress on our strategic transformation from a big, small company to a small, big company: Creating a New Hardie. FISCAL YEAR 2020 OPERATING RESULTS We have continued to execute our global strategic plan, leading to an outstanding performance during fiscal year 2020. As a team we have generated significant positive momentum on the transformation that we embarked on over a year ago. From a global perspective, our group results were driven by an outstanding North America performance, as we continued to grow above our addressable market while delivering exceptional returns. The group achieved adjusted EBIT growth of 20% and adjusted NOPAT increased 17% for the 2020 fiscal year. Our operating cash flow increased an exceptional 48%, providing improved liquidity and financial flexibility for our business. While I am proud of the outstanding fiscal year 2020 performance, I am even more excited about our James Hardie Multi-Family team on stage at the North America continued positive momentum in fiscal year 2021. Sales Meeting in Dallas, Texas in February 2020. 8
The North American business delivered excellent results OUR RESPONSE TO THE across the board in all key financial metrics, including volume growth, EBIT growth and adjusted EBIT margin. In the exteriors COVID-19 PANDEMIC business, our volume growth accelerated in the second half Our approach in managing this crisis has always been of the year resulting in 9% growth for the fiscal year. For our about providing the absolute clarity of direction throughout interiors business, volume growth also continued to improve the organization; and at the same time being able to gain each quarter, delivering 1% growth for the fiscal year. real time feedback on key happenings from all of the markets We continued to improve on the execution of the Hardie that we participate in and from all of our front line employees, Manufacturing Operating System. The North American from around the world. This is essential in allowing and business generated US$29 million of Lean savings for fiscal empowering our leaders at various levels to make the right year 2020, which is ahead of plan. decisions in real time that are fact-based. For fiscal year 2020, our adjusted EBIT margin reached an Consistent with our foundational Zero Harm culture, exceptional 25.9%. These results reflect the significant impact our primary objective is to ensure that the health and safety of our commercial transformation from pull to push-pull and of our employees, customers and suppliers are taken into the Lean transformation in our network of manufacturing plants. consideration in all business decisions we make. For fiscal year 2020, North America delivered greater To this end, we established consistent, clear and specific than 7% growth above the market. This is the first time in pandemic protocols that were implemented across the more than a decade that North America delivered growth globe to ensure we have one global James Hardie standard. above market greater than 6% and an adjusted EBIT margin greater than 25%. This is another confirmation that we are These protocols include: now operating consistently at a new step change level. • Strict physical distancing policy Our Asia Pacific segment produced good financial returns, • Extensive disinfection and hygiene processes delivering a 22.7% adjusted EBIT margin and flat revenue on a regular basis growth in Australian dollars. The Australian business • 24/7 PPE and hygiene kits continued to deliver growth above market and the Australian team remained disciplined in their approach to executing our • Sick leave and child care support push-pull strategy and the Hardie Manufacturing Operating • Work from home model utilized where applicable. System, leveraging best practices from other regions to continuously improve throughout the year. While this crisis presents our leadership team and our employees throughout the world with a very real challenge, The European business delivered net sales growth of I’m confident that our relentless focus on maintaining a safe 5% in Euros for fiscal year 2020, driven by an increase of and sustainable work environment will help strengthen our 32% and 2% in fiber cement and fiber gypsum, respectively. business continuity and ensure we can continue to produce Adjusted EBIT margin was 8.2% for the fiscal year. products and serve our customers seamlessly. Home featuring HardiePlank® lap siding, HardiePanel® vertical siding, HardieTrim® boards and HardieShingle® siding with ColorPlus® Technology. Location: Powell, Ohio 2020 Annual Review 9
CEO’S REPORT (CONTINUED) NORTH AMERICA SALES MEETING, DALLAS, TEXAS IN FEBRUARY 2020 SAFETY AND WELL-BEING Safety and well-being come first in every business decision we make. Zero Harm is a non-negotiable at James Hardie. This starts by developing a culture where everyone is both empowered and accountable for safety. We continuously check and adjust to ensure that we have a safe work environment and systems for our employees, vendors and partners. Everyone should be able to come to work, contribute in their role and return home to their family safely. We continually invest to improve our manufacturing plants and processes to deliver a clean, safe environment to work in. Above all, our employees always have a voice— they are empowered to shut down the production line if they observe a potentially harmful situation for themselves or their co-workers. Since the COVID-19 crisis began, we have implemented a number of measures to ensure safety and well-being of our people and our business partners: Hunter Lansing, CEO, Stephanie Lansing, spouse, and Chris Lansing, Chairman of the Board, of Lansing Building Products • Visitors to our plant and office locations receive the Distinguished Partner Award from Dr. Jack Truong and must have their temperature taken and fill members of the James Hardie Sales Leadership team. out a safety and well-being questionnaire • Increased extra cleaning and hygiene protocols at all plants and offices • Supported customers and business partners by redirecting existing resources to develop new safety measures and best-practices that can be used in the marketplace and on job sites. James Hardie CEO, Dr. Jack Truong, and Supply Chain Director, Jeff James Hardie CEO, Dr. Jack Truong, presenting the Distinguished Wrobel, present the Distinguished Partner Award to Jeff Rettig, VP of Partner Award to Meagan McCoy Jones, President and COO, Supply Chain, and Scott Doyle, Senior Buyer, of Builders FirstSource. of McCoy’s Building Supply. 10
The James Hardie team at the International Builders’ Show Las Vegas, in 2020. We will continue to connect our global businesses together and focus on critical few opportunities to create STRONG CASHFLOW value and earn our customers’ business every day via: (i) increased demand for our products and solutions with AND LIQUIDITY the builders and contractors, (ii) more efficient supply chain Our strong sales performance in the fourth to serve our customers better, (iii) more enabling tools that quarter of fiscal year 2020, along with our quick make it easy for our customers to sell our products, (iv) high and decisive capital management and working impact innovations that expand market opportunities for capital actions, led to a significant improvement our customers. in our liquidity and leverage ratio positions as of When we are able to deliver consistently on all of these 30 June 2020: liquidity of US$693 million and objectives, we will truly be a global company that can leverage ratio to 1.65x. deliver sustainable and profitable growth. I look forward to building on the considerable momentum generated in fiscal year 2020 to navigate effectively through the current crisis with a keen eye toward coming out of the crisis as an even stronger James Hardie. SUMMARY As we enter fiscal year 2021, we continue the path of driving a fundamental transformation in our company, a path of Creating a New Hardie. We are on a journey of transforming our company from being a big, small company to being a small, big company. We are creating and becoming a customer-centric company Dr. Jack Truong that strives to become that trusted and valued partner for CEO our customers, globally. We continue to build capabilities and processes that connect our core strengths to generate scale to deliver profitable growth, consistently. While we are on the right track, our fundamental transformation is far from complete. We still have significant work to do across our key focus areas. 2020 Annual Review 11
SUSTAINABILITY OVERVIEW SHAPING A SUSTAINABLE FUTURE We also recognize the company’s ability to influence the Embedded in a foundation communities in which we live and work around the world. While operating with a global mindset, we put great care into of Zero Harm, James Hardie’s how our business impacts the local communities in which we operate and serve by sourcing locally, employing locally approach to Sustainability and delivering locally. puts people first with a Similarly, James Hardie’s disciplined approach to Lean manufacturing delivers both strong operational and focus on safety. Investing in sustainability performance. From cultivating teamwork and empowerment in our people to resource conservation and a culture of safety ensures waste reduction in our processes, James Hardie helps build better homes, with less. This in turn enables James Hardie both our employees and to continue to invest in developing sustainable and thriving our business partners communities around the globe. During fiscal year 2020, we continued our relentless drive get home safely to their to improve our ESG processes and practices. In doing so, we have made significant progress on our sustainability families, every day. reporting journey. GLOBAL SUSTAINABILITY HIGHLIGHTS Local Community Safety Lean Manufacturing $912M 1.05 $36M Invested into local Global total recordable Global savings communities around incident rate vs industry the globe average of 4.70 12
CEO’S MESSAGE Last year the Executive Leadership Team and I With the full support of the Board, we plan to publish committed to delivering a full sustainability report a report prepared in accordance to the GRI Standards in calendar year 2021. As we progress this transition toward by the end of fiscal year 2021. fiscal year 2021, we have continued to improve upon the sustainability reporting we include in our Annual Review Throughout fiscal year 2020 we have had clear and proactive and Annual Report on Form 20-F. Environment Social and Governance conversations with many stakeholders and have decided to adopt the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards). The GRI Standards is the most widely adopted framework for Environmental, Social and Governance reporting and will provide a framework for us to Employee health, safety and report on material topics, their related impacts and how they well‑being are our highest priority are managed. These stakeholder discussions also looked at future challenges and how James Hardie will respond during the COVID-19 crisis. to the recommendations set out by the Task Force for Climate‑related Financial Disclosures (TCFD). The safety and well-being of all of our employees come first. This is front of mind for any business decisions we make As we reflect on the progress of our sustainability journey, as we navigate through this unprecedented COVID-19 we are developing a roadmap for the future. We are crisis. We remain very focused on business continuity discussing the next stage with key stakeholders to confirm because we know that our ability to continue to operate what is important for them and what they expect from our manufacturing facilities in a safe and compliant way is James Hardie to ensure we continue to create value now an important part of how we as a company are able to serve and well into the future. What is clear is that we play a key our customers better and subsequently support the overall role in shaping a sustainable future and that partnerships well-being of our employees. will be critical to achieving shared objectives. In this report we cover our sustainability performance for fiscal year ended 31 March 2020, across our global operations, while referencing the GRI Standards. We intend to strengthen our application of the GRI Standards and other relevant frameworks, such as the SASB Sustainability Accounting Standards and the TCFD recommendations, to improve the quality and comparability of our reporting. Dr. Jack Truong CEO 2020 Annual Review 13
SUSTAINABILITY OVERVIEW (CONTINUED) INTEGRATED APPROACH TO SUSTAINABILITY • Product design and innovation considers James Hardie is undertaking sustainability‑related impacts and ongoing enhancements. a transformation to deliver • Lean Manufacturing promotes resource conservation and waste reduction. greater value to stakeholders. • Our people are at the heart of all we do. Fostering high Our global strategy for levels of engagement and a culture in which people can thrive promotes shared success. value creation embeds the • The Zero Harm foundation ensures the safety of our products and employees, partners, customers sustainability principles and and communities. practices that inform our In the coming years, we will continue to develop our sustainability strategy and define the next steps in our ESG strategy. ESG journey. Future areas of advancement include improving the quality of our sustainability reporting and CDP submission using recognized frameworks (GRI • The leadership position we earn within the market every Standards, SASB Sustainability Accounting Standards day extends to our sustainability objectives and our aim and TCFD recommendations), growing our internal ESG to be a leader in sustainability performance and reporting. team, strengthening systems, setting targets, and planning • We deliver long-term value through our responsibly initiatives to meet them. produced line of high-quality, built-to-last products. Home featuring HardiePlank® lap siding and HardieShingle® siding with Cobble Stone finish and HardieTrim® boards with Arctic White finish. Location: Philadelphia, Pennsylvania 14
MATERIALITY AND STAKEHOLDER ENGAGEMENT ENGAGING WITH STAKEHOLDERS Engaging with our stakeholders, which represent individuals and entities impacted by our operations and products or that have an impact on our success, is an essential aspect of our day-to-day operations and management. The following table lists some of the ways we regularly engage and communicate with our stakeholders. Stakeholder Group Methods of Engagement Employees • Manage online and in-person working groups • Execute employee surveys • Distribute newsletters • Coordinate monthly global town hall meetings with follow-up surveys Regulatory Agencies • Monitor compliance mechanisms • Lead focus sessions aimed at better preparing for regulatory changes Investors • Lead quarterly earnings calls • Hold annual shareholder meeting • Address requests for ESG ratings and rankings agencies • Respond to direct requests from our institutional investors Municipalities • Implement outreach, including community development • Coordinate with neighborhood associations • Participate in volunteering activities, community events and make charitable contributions • Assist in disaster recovery initiatives Customers • Lead discussions with installers, building professionals, intermediaries, and homeowners aimed at assessing opportunities for product innovation • Investigate ways to optimize logistics with distributors and dealers • Offer training and conduct product-level training initiatives • Participate in industry-led initiatives where relevant • Communicate construction best practices through our blog, newsletters and on the job site Suppliers • Direct interaction through the selection process and ongoing relationship management • Educate on our Supplier Code of Conduct 2020 Annual Review 15
SUSTAINABILITY OVERVIEW (CONTINUED) DETERMINING OUR MATERIAL TOPICS Validation At James Hardie, we’re committed to reporting on what matters To ensure completeness, we vetted results with most to our stakeholders. This includes governance and ethics, internal stakeholders. along with topics that are environmentally or socially impacted After initial review and refinement, the Global ESG Lead by our operations, influence the decisions of our stakeholders consulted with the ESG Steering Committee and senior or that have strategic significance for the company. executives on the proposed list of material topics and assessment results for further refinement and approval. This year as part of our efforts to strengthen our reporting practices, we undertook our first formal materiality assessment to identify, prioritize and validate topics List of Material Topics for reporting and informing our sustainability strategy. The process, which was led by our Global ESG Leader Governance and Ethics and supported by external sustainability consultants, Structures and practices in place for governing and managing applied the GRI Reporting Principles for defining report James Hardie according to sound ethics and principles of content (stakeholder inclusiveness, sustainability context, accountability, transparency, responsibility and fairness, materiality and completeness), as outlined below. including the governance of ESG/sustainability impacts. To ensure stakeholder inclusiveness, we took stakeholder interests and perspectives into account throughout the Occupational Health and Safety process, some by proxy (such as employees, customers Efforts to ensure healthy and safe work conditions across and local communities) and others through direct our operations, including the prevention of physical and mental harm, and promotion of workers’ health. consultation (global and regional senior leaders from across the company and institutional investors). Product Quality and Safety Identification Management of product service quality and safety and ensuring customer requirements are met, which includes We applied the sustainability context principle sustainability-related aspects and product liability. to identify relevant topics for prioritization. We developed a list of environmental, social and Human Capital Management governance topics relevant to James Hardie’s business Our approach to attract, develop, engage and retain our workforce and operations through the lens of sustainable development through a culture that promotes inclusion, innovation, performance and stakeholder interests. and growth, resulting in James Hardie being an employer of choice. The initial list of topics and their definitions were drafted using a range of sources, including: Water and Effluents • Topics identified in our previous sustainability reports Our approach to conserving, managing and reusing/recycling water, including the amount of water withdrawn and consumed • United Nations Sustainable Development Goals and the quality of the water we discharge (effluents). • Relevant frameworks, including the GRI Standards and SASB Construction Materials Sustainability Accounting Standard Waste The generation, treatment and disposal of both hazardous • Peer benchmarking, industry initiatives and sectoral trends and non-hazardous waste (including efforts to divert waste • Stakeholder feedback. from landfills) and the management of chemical, oil and fuel spills, or any other substances. Prioritization Emissions We applied the materiality principle to evaluate topics Management of the release of air emissions associated with and set a threshold for materiality. our operations and impacts across the value chain, including greenhouse gases through the use of electricity, natural gas, fossil For each relevant topic, we evaluated the significance of fuels, refrigerants, etc., particulates and embodied in materials. the associated impacts and level of stakeholder interest and strategic priority. We quantified topics for prioritization based on factors drawn from the GRI Materiality Tests and informed Energy by further desktop research, organizational factors, and Management of energy consumption across our operations, stakeholder interviews with more than 30 cross-functional including types of energy, energy conservation and use of internal stakeholders from our North American, Asia Pacific renewable energy. and European regions and with institutional investors. We plotted topics on a materiality matrix and set a threshold Product Design and Lifecycle Management for materiality, which designated the top nine topics for Efforts to manage the lifecycle impacts of our products and reporting (see List of Material Topics). meet demands for high-quality, sustainable products, including material recovery at end-of-life. 16
ASSESSING IMPACTS ALONG THE VALUE CHAIN As part of our materiality assessment, we evaluated impacts associated with topics along the value chain. We manage impacts under our direct operational control through integrated operating and management systems, such as the Hardie Manufacturing Operating System (HMOS). In areas where we have some level of influence over impacts as they relate to our operations, we seek ways up and downstream to help minimize negative and maximize positive impacts. SUPPORTING SUSTAINABLE Across our North American network, we deliver this ECONOMIES high value with the smallest environmental footprint. At James Hardie, we operate with a global mindset but also put great care into considering how our business impacts the local communities we serve. We know that our success brings both direct and indirect Source locally economic benefits to the communities and regions in which we operate. It’s why we invest significantly in local ecosystems, across our suppliers, capital expenditure in our plants, and employees, to help develop local economies. Our direct spending through payroll and taxes, the purchase of local materials, and our local distribution network makes a positive economic Deliver locally impact in our communities. This approach benefits the local economies as well Employ locally as our customers. Source locally • Purchasing local materials, goods and services benefits both the environment and local economies. • 83% of raw materials (by weight) are sourced within 100 miles of a plant. $912M Employ locally In fiscal year 2020 James Hardie • We are proud to provide jobs and invest in our invested over $912 million in our people across many communities. Suppliers, Plants and Employees • Through our direct spending in payroll and taxes we help drive economic benefits at a local level. where we operate. Deliver locally • Supplying customers via a local distribution network decreases our environmental footprint and provides a positive local economic impact. • 70% of products are shipped to customers within 500 miles of a plant. 2020 Annual Review 17
SUSTAINABILITY OVERVIEW (CONTINUED) SAFETY At James Hardie, we believe that safety is a non-negotiable value for business success, and we prioritize the protection of our people and those who use or interact with our products. Our Zero Harm Safety Culture mission is to become a world‑class safety organization focused on safe people, SAFETY PERFORMANCE safe places and safe systems. Our performance in fiscal year 2019 and fiscal year 2020 continues to be significantly better than the industry average. DEPLOYING ZERO HARM GLOBALLY Global Incident and DART Rates 2020 Industry Average TRIR DART Rate TRIR DART Rate Vision 1.05 0.53 4.70 3.20 Global Global Approach Requirements Notes: Figures are reported across our global operations and include employees and temporary/contract workers. Calculations follow OSHA guidelines. Industry average is from Global Standards US Bureau of Labor Statistics NAICS 32739, Industry Other Concrete product manufacturing. Regionally TRIR refers to total recordable incident rate. Designed TRIR is the standard reporting term expected from GRI, Regional EHS Systems & Managed ISS, MSCI and Sustainalytics. Strategy Procedures, Game Plans, Tools DART refers to days away from work, restricted work activity or job transfer. Leadership & Behavior Actively Engaging/ Empowering all Employees safe behaviors. We also have dedicated safety professionals at each of our facilities. Our global strategy begins with the foundation of Zero Harm, our commitment to safe people, safe places and safe systems. • To enable Zero Harm safety 24/7, at work and at home, we utilize SafeStart. The program is aimed at reducing risk and the probability of injury through behavioral‑based safety Safe People awareness and skills development. SafeStart includes Achieving world-class safety starts with people working in an in-the-field application called Rate Your State, which a culture where everyone is empowered to be—and seeks combines the role of self-discipline and peer-to-peer to be—a health and safety leader. We are developing an communication to build and sustain safety-minded engaged workforce that is empowered and accountable, behaviors and reduce risks. that works cross-functionally, sharing and replicating best practices and maintaining a global and continuous • We established Safety Steering Committees at our facilities, improvement mindset. which are led by a cross-functional group of employees. The Safety Steering Committees have shifted our culture • Safety is everyone’s responsibility; therefore, all from a top-down program to an employee-driven program. employees have clearly defined safety responsibilities, A subset of the Safety Steering Committees has been are given appropriate authority to stop work for safety created to enable additional employee engagement in concerns, and are held accountable for demonstrating areas of higher risk within each plant. 18
• We evaluate employee safety engagement based on peer-to-peer observations, hazard identification and positive recognitions entered within our safety management system. This reinforces a “brother’s/sister’s keeper” spirit at our facilities, where everyone is looking out for the person next to them. Safe Places We ensure a safe work environment for our people. • Each site has a continuous improvement strategy and a safety scorecard. We undertake annual audits and an annual review of regulatory changes, which helps inform improvement measures, especially around critical safety risks. • We encourage the reporting of safety observations and require every accident be reported to all regions. Each week, we hold safety meetings at all facilities so our people can share significant events, near misses and best practices, and suggest potential changes to policies and procedures. • Comprehensive hazard abatement measures, such as lockout/tagout programs, help prevent injuries. Site‑level safety assessments are being implemented in each International Builders’ Show: SAFETY365 at James Hardie. region to reduce hazards further. In North America, for example, we are conducting energy-related assessments for risks in high-voltage areas, mobile equipment and pedestrian interfaces. • HMOS implementation has enhanced our focus on housekeeping and has had a positive impact on safety in our manufacturing facilities. HMOS also provides us with a clear methodology of sustaining our safety culture. Safe Systems PROMOTING SAFETY Integrated data-driven management systems and robust safety AT THE BUILDING SITE training programs support our people and our performance. • Data management: In 2019, we implemented a global Our commitment to Zero Harm safety database system, Zero Harm Data Management, follows our products to the building as part of the standardization of our processes and sites and homes where they are used, procedures. It includes a repository for safety audits, supporting the safety of professional incidents and near misses, observations, actions, and builders, siding contractors and installers, regulatory reporting requirements. The system enables and homeowners. the Safety Team to operate on a standardized, global platform across all our facilities, using data to focus on We share our technical and operational expertise and manage known and potential risk areas. through training and resources on installation best practices, building science fundamentals, • Contractor management: We partnered with construction and installation efficiencies. ISNetworld, a third-party vendor, to provide oversight Along with our work with our business partners, and guidance to our contractors and vendors that this ensures our end consumers receive products perform work at James Hardie facilities. Global that are installed safely and correctly. In North implementation is underway during fiscal year 2021. America, for example, our “First Board, First Nail” • Training: All employees receive safety training upon hire, training at the beginning of key projects helps annually and as needed if they transition to new roles or ensure the best start possible. Online resources when there are regulatory or process changes. Training provide guidance to help professionals meet exceeds compliance standards through mandatory safety standards, such as OSHA’s silica dust and company-specific safety training and education. standard, and information on best practices. In addition, all plant operational meetings start with safety. In these meetings, all employees stretch, share Safety 365 engagements, recognize the safety contributions of Developed by James Hardie and the National others, identify high-risk work for the day, highlight Association of Home Builders (NAHB), this hazardous conditions, and review any network or simple-yet-comprehensive program gives siding plant safety incidents from the last 24 hours. contractors the tools to set up a proactive safety • Continuous engagement and improvement: program to help keep crews safe—365 days a year. To assess the level of employee engagement in the safety management system, managers set participation goals and monitor employee performance. 2020 Annual Review 19
SUSTAINABILITY OVERVIEW (CONTINUED) PROACTIVE APPROACH An example of this commitment is at our TO ZERO HARM Prattville, Alabama greenfield construction project, where we halted a $240 million, For James Hardie, Zero Harm isn’t just a phrase. It’s the 780,000 square feet project with over foundation of who we are. It drives our decisions across 360 contractors, all in the name of safety. the globe, from how we operate our manufacturing facilities to how we support our employees and partners At James Hardie, Zero Harm is a foundational standard to help ensure they get home safely every night. that drives proactive change and inspires action at all levels, every single day. It is a non-negotiable value for Our unwavering commitment to Zero Harm is put into everyone who works in, and with, our company. action every single day, at every level of the business. Situation Action Result Day 0 Day 1 Day 5 • A $240 million project was Day 1 • Work was able to safely underway to construct a The James Hardie resume five days after new 780,000 square feet Executive Leadership Team the job was halted. James Hardie Prattville, partnered with the CEO of the • Third party contractor Alabama plant facility. primary contractor to establish and vendor management • James Hardie employees clear safety standard expectations systems in place to verify reported a series of serious and determine actions needed compliance to James safety observations (not before work could continue. Hardie safety standards. injuries) involving our primary Days 2–5 contractor and some of its sub-contractors. The contractor’s leadership team incidents worked with our Zero Harm team 0 on site in FY20 • Actions observed indicated to develop an updated risk-based the contractors’ practices safety plan to reduce overall risk decrease were not aligned with at the site and provide a safer 6x in Near Misses Zero Harm. working environment. Enhanced safety measures included: increase • Upon learning of these 2x in engagement observations, the Executive • Assigning six additional safety Leadership Team resources on-site through immediately made the project completion. decision to stop work on the plant construction project • More engagement with craft due to the safety standard trades workers on hazard concerns, standing down awareness and abatement. all 360 contractors on site. • Providing James Hardie and third-party safety personnel to ensure successful execution of the plan. 20
IMPLEMENTING ZERO HARM: REAL RESULTS Safety has always been of utmost importance to James Hardie, especially in our plants. In order to run a true Zero Harm organization, we knew it was critical to thoroughly educate groups across all environments so that the purpose and standardization were fully embraced. Teams across the globe held risk awareness training workshops to improve operator abilities in recognizing hazards and developing proper measures. Meeting structures changed across all disciplines to prioritize Zero Harm issues first and address them at the appropriate management level. Review and optimization of standard operating procedures became a regular occurrence to embrace continuous improvement. Every small behavioral adjustment allowed the full cultural transformation toward our Zero Harm focus. Zero Harm Implementation in European Plants Standardized new Standardized Improved equipment— Implemented clearly personal protective colored marking handrails, catwalks defined housekeeping equipment for plant systems for pedestrian and access to machines standards to empower employees and ways and railings for by eliminating safety employees to change visitors to maximize clear guidance. hazards. their work environment protection and visibility. and make work more efficient. The proof is in the results 63% lower incident rate 365 days Implementing Zero Harm lowered the incident rate Thanks to Zero Harm practices, our Calbe, Germany by 63% in fiscal year 2020 for our European plants, plant significantly improved their accident rate as well, bringing the Europe incident rate to 0.64. achieving their one-year accident‑free anniversary in fiscal year 2020. Our Wijchen, Netherlands plant celebrating 1,176 days without a safety incident. 2020 Annual Review 21
SUSTAINABILITY OVERVIEW (CONTINUED) SUSTAINABLE OPERATIONS THROUGH LEAN MANUFACTURING James Hardie’s transformation from the world’s best fiber cement producer to a world-class manufacturer is powered by the philosophy and practices EMPLOYEE EMPOWERMENT of Lean manufacturing. AND ACCOUNTABILITY Employee engagement, empowerment and accountability are critical to strengthening our business and ensuring that HARDIE MANUFACTURING OPERATING we maintain our competitive advantage. We recognize that SYSTEM (HMOS) better engagement leads to a more productive workforce. Our deployment of Lean is through the Hardie Manufacturing Lean encourages employee engagement, responsibility Operating System (HMOS); a single operating system that and accountability. We have invested significantly in integrates our global network of plants and our people. training initiatives and building organizational capabilities, Introduced in 2019, HMOS is a cultural transformation establishing Lean roles at all of our manufacturing facilities. in how we operate. To launch HMOS we held multi-day training sessions on-site and conducted follow-up education. In addition, new data Delivering strong operational and management systems are being implemented at the plants to support performance monitoring and reporting. sustainability performance HMOS drives improvement in our manufacturing and environmental performance through employee engagement Cultivating teamwork and shared progress and empowerment, elimination of daily variability, and continuous HMOS also promotes communication and feedback improvement in the manufacturing processes. Through HMOS among and between operators, supervisors and leadership, we are standardizing policies and processes globally to replicate to engage all employees in continuously and consistently best practices while enabling regional management specific improving results and minimizing variability. to local regulatory requirements and product lines. Our level-based meeting approach integrates Lean HMOS plays a key role in our sustainability initiatives, continually principles to promote vertical and lateral communication driving improvements in manufacturing efficiency, resource and coordination across the organization, ensures prompt conservation, waste reduction and safety. The emphasis on response on issues and supports progress on goals. employee engagement, cross-functional collaboration, and The meetings occur at designated intervals and with knowledge sharing on best practices and lessons learned, broadening facility and organizational representation. supports improvement initiatives across the company. In manufacturing, for example, each shift begins with an L1 meeting, with all operators to review the plan for the shift and address any issues from the previous shift. There is a daily L2 meeting with department supervisors at which unresolved issues from L1 meetings are discussed and addressed, and a daily L3 meeting with plant management to review progress and resolve escalated matters. A weekly network‑wide L4 manufacturing meeting, with the CEO, brings together cross‑functional representatives from areas such as accounting, human resources, safety and R&D to discuss results, share recognitions and $36M address any escalated manufacturing issues or needs. This structured approach is executed by all departments Global Lean Manufacturing in the organization. Consistent communication at all levels, Savings in Fiscal Year 2020 and timely follow‑through on issues or opportunities arising from L-meetings, is building engagement and promoting accountability across the entire organization. 22
INCLUSION AND DIVERSITY We recognize that we have not done enough in the past to proactively address the inequalities and social injustices throughout the world. We want to be a part of the solution. We are now listening, learning and actively engaging to support positive change. We have seen and felt what’s wrong and we are dedicated to doing what’s right. We are fully committed to becoming an inclusive and globally diverse workplace, free from any form of discrimination, prejudice, inequality or injustice, with a workforce that reflects the communities we operate in and the markets we serve. We believe fostering an environment where employees have a sense of belonging, feel comfortable and are able to do their best work, is part of our overall commitment to employee well-being. We recognize the value of the diverse perspectives, experiences, skills, and capabilities of our global team. We unequivocally reject any form of intolerance and believe that each of our employees should always be treated with respect, whether in the plant, office, or at a customer/vendor site. Employee Retention The implementation of EMPLOYEE SNAPSHOT HMOS and coordinated efforts to improve talent Because our continued growth and innovation depend on the growth recruitment, onboarding and innovation of our people, we work to attract, develop, engage and and employee engagement retain a strong team. have contributed to significant reductions in turnover. Workforce Profile 2020 2019 2018 North America Business 2,760 2,634 2,840 – Female 342 331 326 – Diversity Characteristics 1,054 989 1,048 Non North America Businesses 2,109 2,282 1,120 – Female 335 362 210 85% – Diversity Characteristics n/a n/a n/a Manufacturing Employee Retention in Total 4,869 4,916 3,960 North America during fiscal year 2020 Notes: Most of our employees work full-time. Contract/temporary workers make up a small percentage of our workforce. Diversity characteristics include gender, race or national origin. Turnover Race/national origin diversity characteristics vary between countries and are therefore not captured in aggregate for Non North America businesses. FY20 15% FY19 30% 2020 Annual Review 23
SUSTAINABILITY OVERVIEW (CONTINUED) PRODUCT DESIGN AND INNOVATION As builders and homeowners alike are increasingly eco-minded, we remain committed to implementing high-quality solutions that deliver exceptional value, including sustainability-related features, while improving environmental impacts across the product lifecycle. PRODUCT SUSTAINABILITY HIGHLIGHTS CUSTOMER-DRIVEN INNOVATION • Durability is a hallmark of sustainable James Hardie is the global leader in fiber cement technology, products. Built-to-last fiber cement and has been furthering founder James Hardie’s innovative, materials not only require fewer resources entrepreneurial legacy around the world for more than for replacement, but also help reduce 125 years. The brand invented fiber cement siding products in maintenance and repair costs. the early 1980s as a durable, low-maintenance alternative to wood and vinyl. James Hardie products combine innovation ® • HardieBacker product line is certified and versatility to offer a variety of design possibilities, GREENGUARD Gold, which can contribute matched with specific performance attributes relative to the to the LEED New Construction points for climate where the product is being used. At the heart of this Low-Emitting Materials. unmatched approach lies a customer-driven approach. • At least 75% of raw materials used are locally It’s with the end-user in mind that we build products sourced, reducing energy and emissions to last and withstand the test of time, including severe from transportation. weather‑related events. Whereas wood siding has to be • Raw materials (Portland cement, cellulose refinished every two to five years, manufactured materials pulp, sand, and water) are low in toxicity. like fiber cement are designed to last, even when exposed to high heat, moisture, UV radiation, and snowstorms. Understanding the relevance of our products in an ever‑changing market requires ongoing engagement, research, design and testing. Quality is defined by meeting customer requirements; therefore, we rely on customer insights to drive product innovation. The following recent product introductions showcase our ability to innovate and meet customer interests. 24
NEW PRODUCTS LAUNCHED IN FISCAL YEAR 2020 NORTH AMERICA EUROPE ASIA PACIFIC Aspyre HardieSoffit® Dream HardieBacker® HardieWindbreaker® ExoTec ® Vero™ EasyTex™ Collection by VentedPlus® CollectionTM cement sheathing board panel panel James Hardie® panel board with Hydrodefense™ Technology Homes featuring Statement Collection™ and Dream Collection™ range Location: Nashville, Tennessee 2020 Annual Review 25
SUSTAINABILITY OVERVIEW (CONTINUED) ENVIRONMENTAL STEWARDSHIP We are dedicated to environmental excellence and sustainability. INTEGRATED ENVIRONMENTAL MANAGEMENT James Hardie seeks to minimize the impact of our business on the environment by concentrating on environmental compliance, resource conservation and continuous improvement. Our approach integrates our comprehensive environmental management system with the focus on efficient manufacturing processes within HMOS and our Zero Harm Culture. Our environmental policy, which is communicated with employees, subcontractors and customers, outlines four guiding principles: use of renewable and recyclable resources; conservation of water, resources and energy; waste reduction; and the protection of the environment. Three of our North American and all our European manufacturing plants maintain ISO14001-certified environmental management systems. The remaining locations have documented systems, which implement ISO14001 best practices in compliance with our global policy. The HMOS Home featuring HardiePanel® vertical siding and HardieTrim® boards. emphasis on quality and elimination of all forms of waste Location: Orange County, California. reduces rework, which conserves energy and resources. Product life cycle Environmental aspects are also considered as part of COLORPLUS® TECHNOLOGY product development and innovation. We pursue ways LOWERS VOCS ASSOCIATED to enhance the sustainability performance across the WITH PAINTING product lifecycle, such as lower-emissions, recycled content, and local sourcing of raw materials. James Hardie’s unique ColorPlus® Technology finishes deliver a high-quality, consistent finish Evaluating performance and driving to the market, while reducing environmental improvement impacts across the building lifecycle. The use of James Hardie siding with ColorPlus® Technology To evaluate progress, we monitor environmental eliminates the need for exterior painting at the performance data on a regular basis, from plant-level jobsite, significantly reduces paint waste, and analysis to executive management reviews. Plant managers minimizes exposure to volatile organic compounds are responsible for results and achievement of targets at (VOCs), because color coatings are applied in their specific location, but also work together to collaborate a controlled environment at our manufacturing and share effective practices. We are working on developing facilities. This revolutionary process, combined company-wide goals and targets. with the use of ultra-low VOC paint, results in less than half the VOCs as compared to in-the-field paint methods. This process not only minimizes our environmental impact, but also the overall lifecycle impact of the project. 26
ENERGY AND EMISSIONS James Hardie is committed to expanding the HYDRODEFENSE™ TECHNOLOGY: management and reporting of the energy consumption AN INDUSTRY FIRST DELIVERS and emissions associated with its operations. As part of PROTECTION AND SAVES TIME that commitment, we have responded to CDP’s climate change questionnaire since 2017. In addition, we recognize HardieBacker® Cement Board with that James Hardie may be exposed to the physical and HydroDefense™ Technology is the industry’s transition impacts of climate change in the short, medium first 100% waterproof cement backer board. and long term. Climate-related events have the potential After listening to customer input, we developed the to damage our assets, disrupt operations and impact technology to address builders’ interest in saving our people. James Hardie will review its preparedness to time and their desire for better protection from report against the Taskforce for Climate‑Related Financial moisture penetration for tile installations and wall Disclosures (TCFD) recommendations in the next fiscal cavities. Our solution, which meets ANSI 118.10 year to formalize our approach towards the identification, standards for waterproofness, allows for faster assessment, management and disclosure of climate-related and easier installation by eliminating the need risks and opportunities. to apply a waterproof coating across the entire board, while continuing to deliver exceptional A significant portion of the greenhouse gas (GHG) footprint of tile adhesion and strength. Furthermore, by our products occurs upstream, primarily from the embedded using 2% pre-consumer recycled content and carbon in the cement we use. We believe the durability of achieving VOC Green Certification, we’ve realized our products, longer life span compared to other building a 10% reduction in Scope 3 emissions compared materials, and increased energy efficiency of structures when to our standard HardieBacker® product. our products are applied, support cement siding as the building material of choice. Our teams continue to seek ways to optimize the use of cement in our fiber cement products. Our HydroDefense™ technology, for example, has reduced the cement inputs required while developing a superior product. Focusing on energy efficiency to reduce costs and emissions WASTE The industrial processes to manufacture our products have Our focus on resource a high energy demand, and we take a variety of approaches conservation and Lean to reduce our energy intensity. Our continued emphasis on manufacturing drives our quality through HMOS reduces the need for reworked product waste reduction strategies. or built-in surplus, and we regularly assess our equipment The implementation of for efficiency, safety and emissions performance. We expect HMOS has resulted in a other initiatives, such as lighting retrofits and energy audits, more controlled operation, will contribute to reductions in our energy use. thus reducing waste in our Within our operations, the use of electricity and natural gas manufacturing processes. generates GHG emissions, and our production processes also generate other air emissions. Our goal is to reduce our We concentrate on reducing materials used, emissions within our control, through initiatives aimed at using recycled material and maximizing the energy efficiency and shifts in energy sources. To improve beneficial reuse or recycling of materials in our energy efficiency, we conduct energy audits and invest in waste streams. We strive to reduce waste overall projects, such as lighting retrofits, equipment upgrades and and to send zero waste to landfill. For example, optimization, and process improvements. we have achieved this in our European fiber gypsum plants and are working towards this • In fiscal year 2019 and 2020, four of our facilities installed/ standard at other locations. Through HMOS upgraded boilers, which resulted in an annual 50-tonne and the best practice sharing it promotes, reduction in Nitrogen Oxide (NOx) emissions. plants across the company are making progress. • We completed lighting upgrades at seven facilities In Asia Pacific, for example, a percentage of waste in North America over the past two years, and all to landfill has been reduced through HMOS and of our Asia Pacific facilities have been upgraded to further reduced by pursuing local opportunities high-efficiency LED lighting. The projects collectively for beneficial use and recycling of byproducts. contributed to reducing GHG emissions by roughly Initiatives to reduce packaging materials and 6,000 metric tons of CO2e. In addition to the reduction minimize associated waste downstream have in energy and associated emissions, LED fixtures deliver included decreasing the use of plastic on pallets better lighting, which enhances safety. and reducing strapping as appropriate. • Efforts to move to lower-emission and renewable energy Assessing our progress: In addition to reviewing sources are also underway. waste metrics, we gauge overall improvement in material use and waste reduction through our For additional information on our GHG emissions, refer to throughput yield (TPY) performance. This measure James Hardie’s annual CDP reports which are available on drives us to not generate waste in the first place, the CDP website (www.cdp.net). keeping the focus on quality and consistency. 2020 Annual Review 27
SUSTAINABILITY OVERVIEW (CONTINUED) ZERO WASTE: RECYCLING FROM START TO FINISH Operating with a continuous improvement mindset, at James Hardie we are constantly working to reduce our ecological footprint. James Hardie We are proud to produce a sustainable product, and we take numerous measures to further improve our impact. recycles its In Europe, our fiber gypsum boards are naturally a sustainable product that water, not consists only of raw materials that occur in nature, such as gypsum, cellulose, once, but up and water. The fiber used in our fiber gypsum products is produced from 100% to four times. recycled waste paper. Beyond our sustainable inputs, we proudly run our European plants as Zero Waste facilities with no landfill generated. All waste materials from WATER our production are being constantly collected, processed and, if possible, reused in the production to achieve our Zero Waste production goals. Nearly no Our manufacturing exhausts are produced due to the use of non-hazardous and natural raw materials process relies (gypsum, water, paper). All inevitable waste from our production is being collected heavily on water. and disposed in accordance with the local and EU guidelines. We recognize the Our focus on Zero Harm and Zero Waste go hand-in-hand. We are committed to doing importance of everything we can to protect our people and the greater environment that we all share. responsible water management, not Zero Waste Production Approach: Fiber Gypsum Boards only in water‑stressed regions of the world, but in all Recycled Inputs of our facilities. • FGD-gypsum, a leftover material from de-sulfurization units of coal-fired power stations James Hardie maximizes the efficient use of water • Waste material from industrial paper production internally and we are • Recycled gypsum, taken from renovated and continually researching demolished homes alternative technologies • Collected cut-losses and other waste-material to reduce our water from our customers consumption. Water reuse/ recycle projects have been implemented at several facilities, and Ongoing Energy Improvements these best practices are • Constant monitoring and energetic shared globally across improvement of main energy consumption units our network. For example, • Use of new, efficient production technologies we also ensure proper • Constant process-monitoring and modelling treatment of effluents to improve raw material usage and energy prior to discharge and consumption avoid run-off into the surrounding environment or waterways. Repurposing Production Waste • Side cutoffs from boards are put back into production • Paper dust is collected into bricks for further use • Leftover water is pumped back into production • Waste from cement bound boards is put back into production, and is also used by a partner company to fill abandoned tunnels from the coal mining era to help keep ground water clean 28
ZERO WASTE: COMMITTED TO REDUCE AND REUSE Being a global industry leader with high standards for quality, innovation and manufacturing excellence has helped make our Zero Waste goals a reality. Part of this is focusing on producing consistently sellable, high-quality products to reduce unnecessary waste, and part is in making great strides to reuse as much material as possible. Our Philippines plant is a shining example of this. By leveraging both our best-in-class Research & Development and Central Operations teams, all groups worked together with our Philippines plant to ensure new formulations met high James Hardie standards while also maximizing efficiency in recycling product back into the production process and maintaining full operational efficiency. This collaborative solution enabled the plant to begin recycling over 40 metric tons of material per day. Over 90% of potential landfill waste is put back into our production process. Even dust collected is reprocessed with water in sludge as another method to avoid landfill waste. Every improvement, no matter how big or small, makes a meaningful impact. It takes strong determination, expertise and people working together to make such positive change. We believe the more we can preserve, the more the business, MAKING STRIDES TO REDUCE and our environment, benefit for years to come. HAZARDOUS WASTE When it comes to our fiber cement production, We strive for continuous improvement we are also always looking for ways to reduce every day across all facets of our and reuse. business. As part of our Zero Waste initiative, a key focus has been managing the generation of hazardous waste in our facilities to find ways to make Up to 90% 40 impactful improvements. metric tons per day Amount of waste As a global industry leader, we are committed to recycled back Amount of material seeking solutions that help protect our environment into the product, recycled in the for future generations. Through rigorous research avoiding landfills Philippines plant and collaboration with other industries, we have been able to find uses for 98% of what would be classified as hazardous waste into postindustrial recycled materials used as raw materials for others. With this, only 2% of this waste stream is sent out of our North American facilities as hazardous waste. We are proud of strides made so far to reduce our impact and look forward to continuing to find new ways to improve. 98% of our hazardous waste is recycled Europe Investor Tour participants visiting our Wijchen, Netherlands plant. 2020 Annual Review 29
SUSTAINABILITY OVERVIEW (CONTINUED) COMMUNITY IMPACT We strive to positively impact the people and families in the communities in which we operate and where our products are used. COMPANY GIVING AND Company matching to amplify EMPLOYEE VOLUNTEERING employees’ impact James Hardie and our employees are committed to making In addition to making direct charitable contributions, a positive difference in the communities where we live James Hardie offers employees a donation matching and work. Our locally-driven approach supports a range program to increase support to the nonprofits and causes of community needs through company donations and that matter most to them. employee-led engagement initiatives. We also form long‑term In fiscal year 2020, James Hardie donated over relationships with organizations that respond to specific US$1.5 million in product and company matching needs related to housing and community resilience. to organizations including but not limited to: • World Vision Donating products to help build or rebuild homes • Habitat for Humanity Our products help build and protect homes for families • Urban Housing Solutions around the world, providing us with a direct path for • Christopher House working with nonprofits in need of building materials. As a result, we have established a number of long-term • Sacred Earth Foundation relationships with several partners that focus on affordable • Boy Scouts housing, homebuilding and repair, and disaster recovery for families in need, including organizations such as • Helping Overcome Poverty’s Existence Habitat for Humanity and World Vision. • Knox Housing Partnership • Valley Youth House—Camp Fowler • Appalachian Agency for Senior Citizens (AASC) • MTK Foundation—Camp Kamassa • Camille Place • Pulaski County High School VA • Willow Oak Montessori School. Supporting local needs through employee‑led efforts At each location, employees participate in, and often initiate, local neighborhood initiatives and community support activities. Efforts across the company include: • Donating food, school supplies, clothing, toys and more • Volunteering at food banks, homeless shelters and home building and repair events Habitat for Humanity homes built using James Hardie products. • Participating in fundraising events such as Relay for Life. Location: Traverse City, Michigan 30
DEMONSTRATING THE JAMES HARDIE SPIRIT OF GIVING Our Philippines employees display great commitment to improving the lives of those in their community. From donating school supplies to underprivileged students and HardieFlex® boards to Habitat for Humanity projects to help emergency teams and families impacted by the eruption of the Taal volcano, we are proud of this team that rises to the occasion time and time again to support others. The James Hardie Philippines team participated in many service efforts in fiscal year 2020, collectively supporting more than 3,000 individuals in various ways: Provided free Donated Adopted and Donated food, Donated blood consultations school supplies cleaned up a clothes, hygiene in coordination and medicine to ~200 two kilometer kits and more to with the to nearly 300 underprivileged stretch of the others affected Philippine adults, children students of Pulo San Cristobal at an evacuation National Red and infants at a Elementary River as part site housing Cross. medical mission school in of the annual approximately at Barangay San Cabuyao. International 250 families Isidro in the City Coastal and more than of Cabuyao. Cleanup. 1,000 evacuees. RECOGNIZED FOR A DECADE OF HELPING FAMILIES REBUILD As a leader in the building industry, James Hardie has a unique opportunity 250,000 sq ft 10+ years, to help families and communities rebuild of siding and trim in a way that provides the much‑needed donated in 2019 1,950 homes healing and peace that only the protection of a home can bring. In North America we have a partnership with World Vision, a humanitarian organization that provides new, top-quality building materials, school supplies and more to people in low-income communities. We have partnered with World Vision for more than 10 years, donating enough material to cover ~1,950 homes, helping North American families refurbish and rebuild in the wake of financial crises and natural disasters. James Hardie donated over 250,000 square feet of siding and trim in 2019 alone. We are proud of what we accomplish together and were humbled when our longstanding philanthropic efforts Chief Commercial Officer, Sean Gadd, accepting the 2019 were honored by World Vision in January 2020 when Crystal Vision Award, honoring James Hardie’s 10+ years we were presented with the 2019 Crystal Vision Award. of philanthropic efforts. 2020 Annual Review 31
SUSTAINABILITY OVERVIEW (CONTINUED) GOVERNANCE AND ETHICS James Hardie believes strong PROMOTING ETHICAL AND RESPONSIBLE CONDUCT corporate governance is James Hardie seeks to maintain the highest standards of essential to fulfilling our integrity. We are committed to ensuring that the company conducts business ethically, responsibly and in compliance mission and achieving our with applicable legal and regulatory requirements. vision for growth. Our Global Code of Business Conduct communicates expectations for directors, employees and managers, as well as those acting on behalf of the company to do the right thing. It describes what personal, business and financial integrity It also ensures we maintain the trust and confidence of means at a best-in-class, industry-leading organization. Our core investors, customers, employees, communities, regulatory values, along with our collective commitment to Zero Harm, agencies and other stakeholders. Moreover, in an serve as a critical foundation in how we conduct ourselves. ever‑changing market, we find it increasingly important to integrate the oversight of social and environmental James Hardie operates under the regulatory requirements considerations at the highest levels of governance as of numerous jurisdictions, including those of its corporate well as in our strategic, risk management and operational domicile (Ireland) and its principal stock exchange listings practices to ensure long‑term performance and resiliency. (Australia and the United States). All employees and directors are expected to comply with OVERSIGHT OF both the spirit and the letter of all laws and other statutory SUSTAINABILITY‑RELATED TOPICS requirements, including International Trade Controls (ITCs) and James Hardie’s Anti-Bribery and Corruption Policy, To ensure oversight of sustainability-related topics and which govern our business conduct in all countries in which strategy by the Board of Directors, we have established we operate. Policies are available on our Investor Relations a cross-functional ESG Steering Committee, headed by website (www.ir.jameshardie.com.au). the CEO and members of the Executive Leadership Team. The CEO then reports regularly to the James Hardie Board. Training and engagement To help lead and coordinate ESG efforts across our Employees receive training during the onboarding process operations, we established a Global Working Group led by and are required to review the Code of Conduct annually. the Global ESG Leader with representatives from functions We also provide communications to reinforce various topics across our business such as Legal/Risk, Human Resources, on an ongoing basis. In 2019, we updated our Code of Operations, Research & Development, Investor Relations Conduct and deployed training across the company, both and Environmental Health & Safety. The Global Working online and on-site in locations at higher risk for certain issues, Group reports to the ESG Steering Committee. This structure to ensure employees understand how to identify and navigate promotes strong lateral input and support across the situations with integrity. In addition, the CEO spoke at a company while ensuring sustainability matters are reported global employee town hall to reinforce the importance of the to and receive consultation from the most senior-level Code of Conduct. At the end of fiscal year 2020, the rollout executives in our company and Board. was nearly 90% complete, with the remaining employees expected to be fully trained in the first half of fiscal year 2021. Executive remuneration Although we are not required to produce a remuneration report under applicable Irish, Australian or US rules or regulations, we have voluntarily produced one since 2005. The report is available on our Investor Relations website (www.ir.jameshardie.com.au). The Remuneration report describes the executive remuneration philosophy, programs and objectives of the Remuneration Committee and the Board of Directors, as well as the executive remuneration plans and programs implemented by James Hardie. 32
James Hardie Board ESG Steering Committee (CEO and Executive Leadership Team) Global ESG Leader and Global Working Group Human Research & Investor Environmental Legal/Risk Operations Resources Development Relations Health & Safety Safe avenues to raise concerns We encourage our employees to speak up if they see something that is questionable or appears to be in ASBESTOS FUNDING violation of the Code of Conduct either to their manager, During fiscal year 2021, a representative in our HR or Legal and Compliance James Hardie will contribute departments or anonymously via our Complaints/Ethics Hotline. This hotline is managed by an independent, approximately US$153.3 million external provider. All complaints, whether to the Ethics to the Asbestos Injuries Hotline or otherwise, are initially reported directly to Compensation Fund (AICF). the General Counsel and Chief Compliance Officer, This amount represents 35% of James Hardie’s US Employment Counsel and the Director of Internal Audit free cash flow for fiscal year 2020, which (except in cases where the complaint refers to one of them). James Hardie is obliged to contribute as part of Complaints deemed material are referred immediately its commitment under the Amended and Restated to the Chairman of the Board and the Audit Committee. Final Funding Agreement (AFFA). We are intending Less serious complaints are reported to the Audit Committee to make our annual contribution to the Asbestos on a quarterly basis. The Committee meets periodically Injuries Compensation Fund (AICF) in quarterly with management and the General Counsel to discuss installments, versus one lump sum in July 2020, whistleblower complaints received by the company, if any, as allowed under the provisions of the AFFA. and the procedures for the reporting and handling of relevant whistleblower complaints. James Hardie has zero tolerance Including its July 2020 contribution, James Hardie for retaliation against those who raise concerns in good faith. will have provided over A$1.6 billion towards asbestos compensation. Responsible procurement James Hardie is committed to the sustainable and ethical Annual Actuarial Assessment procurement of products and services and continuous KPMG Actuarial conducts an annual actuarial improvement to minimize the environmental and social assessment of AICF’s liabilities as a regular impacts associated with our network. Our Supplier Code update of projections in line with actual claims of Conduct, which outlines minimum standards for health, experience and the claims outlook. safety, environment and labor, including prohibiting the use James Hardie received an updated actuarial report of child and enslaved labor, is shared with all vendors and from KPMG Actuarial at 31 March 2020, which suppliers. We manage supplier relationships through our showed that the undiscounted and uninflated contractor and supplier management portal, which includes central estimate net of insurance recoveries minimum requirements that vendors must meet, along increased from A$1.400 billion at 31 March 2019 with ongoing engagements with our business partners. to A$1.452 billion at 31 March 2020. We encourage self-auditing on adherence to the Supplier Code of Conduct, along with working collectively to address James Hardie discloses summary information and responsibly solve issues for all involved. In line with this, on claims numbers as part of its quarterly results we are also working towards understanding and assessing releases. For additional information, please see modern slavery risks within our supply chains to prohibit the the full 2020 actuarial report of KPMG Actuarial, use of any illegal, forced, bonded or involuntary labor. which is available on our Investor Relations website (www.ir.jameshardie.com.au). 2020 Annual Review 33
BOARD OF DIRECTORS James Hardie’s non-executive directors have widespread experience, spanning general management, innovation, finance, manufacturing, marketing and accounting. Michael Hammes BS, MBA Persio V. Lisboa BS Non-executive Chairman Non-executive director Michael Hammes was elected as an Persio Lisboa was appointed as an independent non-executive director in February independent non-executive director in 2007. He was appointed Chairman of the February 2018. He is Chairman of the Board in January 2008 and is a member of the Remuneration Committee. Remuneration Committee and the Nominating and Governance Committee. Jack Truong BS, PhD Anne Lloyd BS, CPA Executive director Non-executive director Dr. Jack Truong joined James Hardie in April Anne Lloyd was appointed as an independent 2017 and was announced CEO successor and non-executive director in November 2018. appointed President and Chief Operating Officer Ms Lloyd served as a member of the Audit with the responsibility of running the company’s Committee until 26 August 2019, at which time global business in September 2018. He was she stepped down from such position concurrent officially appointed CEO and to the Board of with her appointment as Interim CFO; a position Directors in January 2019. she held until 25 February 2020. Brian Anderson BS, MBA, CPA Moe Nozari BA, MS, PhD and Non-executive director Postdoctoral Research Fellow Brian Anderson was appointed as an Non-executive director independent non-executive director in Dr. Moe Nozari was appointed as an December 2006. He is Chairman of the independent non-executive director Audit Committee and a member of the in November 2019. He is a member of Remuneration Committee. the Remuneration Committee and the Nominating and Governance Committee. Russell Chenu BCom, MBA Rada Rodriguez MSc Non-executive director Non-executive director Russell Chenu was appointed as a Rada Rodriguez was appointed non‑executive director in August 2014. He is a as an independent non-executive member of the Remuneration Committee and director in November 2018. She is the Nominating and Governance Committee. a member of the Nominating and Governance Committee. David D. Harrison BA, MBA, CMA Nigel Stein CA, BSc Non-executive director Non-executive director David Harrison was appointed as an Nigel Stein was appointed as an independent non-executive director in independent non-executive director May 2008. He is Chairman of the Nominating in May 2020. He is a member of the and Governance Committee and a member Audit Committee. of the Audit Committee. Andrea Gisle Joosen BSc, MSc Harold Wiens BS Non-executive director Non-executive director Andrea Gisle Joosen was appointed as Harold Wiens was appointed as an an independent non-executive director independent non-executive director of James Hardie in March 2015. She is in May 2020. He is a member of the a member of the Audit Committee. Remuneration Committee. 34
EXECUTIVE LEADERSHIP TEAM Our management is overseen by our executive team, whose members cover the key areas of general management, commercial, innovation, manufacturing and operations, finance, human resources and legal. Jack Truong BS, PhD Sean Gadd BEng, MBA Chief Executive Officer Executive Vice President, Dr. Jack Truong joined James Hardie North America Commercial in April 2017 and was announced CEO Sean Gadd joined James Hardie in 2004 successor and appointed President and and was appointed Executive Vice President, Chief Operating Officer with the responsibility North America Commercial in December of running the company’s global business in 2018 with responsibility for sales, products, September 2018. He was officially appointed segments and marketing. CEO in January 2019. Jason Miele BA Robert Stefansic BSc, MBA Chief Financial Officer Executive Vice President, Jason Miele joined James Hardie in 2007 North America End to End Supply Chain and was appointed as CFO in February 2020. Bob Stefansic joined James Hardie in July 2020 As CFO he oversees the company’s overall as Executive Vice President, North America, End financial activities, including accounting, tax, to End Supply Chain with responsibility for driving treasury, performance and competitor analysis, operational efficiencies and improvements across the internal audit, financial operations, information supply chain, with emphasis on delivering business systems, and investor and media relations. value via the Hardie Manufacturing Operating System. Julie Katigan BA, MA Johnny Cope BA Chief Human Resources Officer Senior Vice President, Julie Katigan joined James Hardie in May North America Sales 2019 as Chief Human Resources Officer Johnny Cope joined James Hardie in February with responsibility for the company’s 2019 as the Senior Vice President, North America global human resource activities, including Sales with responsibility for delivering the James employee engagement, leadership and talent Hardie value proposition, trusted brand and products, development, and human resources strategy. best-in-class supply chain and technical service framework to the company’s most valued customers. Joe Blasko BSFS, JD Ryan Kilcullen BSc, MS General Counsel, Chief Compliance Executive Vice President, Officer and Company Secretary North America Operations Joe Blasko joined James Hardie as General Ryan Kilcullen joined James Hardie in Counsel and Chief Compliance Officer in June 2007 and was appointed Executive Vice 2011 and was appointed Company Secretary President, Operations in August 2016 in June 2020. Mr Blasko has responsibility with responsibility for the company’s supply for the company’s legal and regulatory chain, manufacturing, engineering and compliance, corporate governance, enterprise environmental, health & safety operations. risk management and government relations. Conrad Groenewald B.Tech, MDP, MBA General Manager, Asia Pacific Conrad Groenewald joined James Hardie in January 2015 as General Manager, Asia Pacific and has responsibility for running the company’s business across Australia, New Zealand, the Philippines and the rest of South East Asia. Jörg Brinkmann MS, PhD General Manager, Europe Dr. Jörg Brinkmann joined James Hardie in April 2018 as General Manager, Europe as part of the Fermacell GmbH acquisition. In this role he is responsible for running the company’s European activities, which are headquartered in Düsseldorf, Germany. 2020 Annual Review 35
SHAREHOLDER INFORMATION 2020 KEY DATES AND CALENDAR SHARE/CUFS REGISTRY End of James Hardie James Hardie Industries plc’s registry 31 MARCH Industries plc fiscal year 2020 is managed by Computershare. All enquiries and correspondence FY20 Quarter 4 and Full Year regarding holdings should be directed to: 19 MAY results and management Computershare Investor Services Pty Ltd presentation Level 5, 115 Grenfell Street Adelaide SA 5000 Annual Report on Form 20-F 20 MAY released OR FY21 Quarter 1 results and GPO Box 2975 11 AUGUST management presentation Melbourne VIC 3001 Telephone within Australia: 1300 850 505 24 AUGUST Annual Review released Telephone outside Australia: +61 (0) 3 9415 4000 Voting Instruction Forms close Website: www.computershare.com 8:00am (Irish Standard Time)/ 4 NOVEMBER 7:00pm Sydney (Australian James Hardie Industries plc Eastern Standard Time) for (ARBN 097 829 895) Annual General Meeting Incorporated in Ireland with its registered office NOVEMBER Annual General Meeting at Europa House, Second Floor, Harcourt Centre, Harcourt Street, Dublin 2, D02 WR20, Ireland FY21 Quarter 2 and Half Year and registered number 485719. The liability of its 10 NOVEMBER results and management members is limited. presentation ™ or ® denotes a trademark or Registered mark owned by James Hardie Technology Ltd. ©2020. James Hardie Industries plc. CORPORATE HEADQUARTERS Europa House, Second Floor Harcourt Centre Harcourt Street, Dublin 2, D02 WR20, Ireland Telephone +353 1 411 6924 Facsimile +353 1 479 1128 ANNUAL GENERAL MEETING (AGM) The 2020 AGM of James Hardie Industries plc will be held in November 2020 on a date and from a location that is dependent upon the relevant travel restrictions in place due to the COVID-19 pandemic. Further details will be set out in the Notice of Annual General Meeting 2020. 36
DISCLAIMER FORWARD-LOOKING NON-GAAP FINANCIAL STATEMENTS INFORMATION Certain statements in this Annual Review may This Annual Review contains financial measures constitute “forward-looking statements” as that are not considered a measure of financial defined in the Private Securities Litigation Reform performance under US GAAP and should not Act of 1995. James Hardie uses such words as be considered to be more meaningful than the “believe,” “anticipate,” “plan,” “expect,” “intend,” equivalent US GAAP measure. Management has “target,” “estimate,” “project,” “predict,” “forecast,” included such measures to provide investors “guideline,” “aim,” “will,” “should,” “likely,” “continue,” with an alternative method for assessing its “may,” “objective,” “outlook” and similar expressions operating results in a manner that is focused are intended to identify forward‑looking statements on the performance of its ongoing operations. but are not the exclusive means of identifying such Additionally, management uses such non‑GAAP statements. Readers are cautioned not to place financial measures for the same purposes. undue reliance on these forward-looking statements However, these non-GAAP financial measures and all such forward-looking statements are are not prepared in accordance with US GAAP, qualified in their entirety by reference to the may not be reported by all of James Hardie’s following cautionary statements. competitors and may not be directly comparable to similarly titled measures of James Hardie’s Forward-looking statements are based on competitors due to potential differences in the James Hardie’s current expectations, estimates exact method of calculation. For additional and assumptions and because forward-looking information regarding the non‑GAAP financial statements address future results, events and measures presented in this Annual Review, conditions, they, by their very nature, involve including a reconciliation of each non‑GAAP inherent risks and uncertainties, many of which financial measure to the equivalent US GAAP are unforeseeable and beyond the company’s measure, see the sections titled “Definition and control. Many factors could cause the actual Other Terms” and “Non-US GAAP Financial results, performance or achievements of Measures” included in James Hardie’s James Hardie to be materially different from Management’s Analysis of Results for the fourth those expressed or implied in this Annual quarter and 12 months ended 31 March 2020. Review, including, among others, the risks and uncertainties set forth in Section 3 “Risk Factors” in James Hardie’s Annual Report on Form 20-F for the year ended 31 March 2020; changes in general economic, political, governmental and business conditions globally and in the countries in which James Hardie does business, including the effect and consequences of the FINANCIAL FOOTNOTES novel coronavirus public health crisis; changes in Unless otherwise stated all $’s are US$ millions. interest rates, changes in inflation rates; changes in exchange rates; the level of construction 1 Unless otherwise stated for fiscal years 2020, generally; changes in cement demand and 2019, 2018, 2017 and 2016 Adjusted Net Operating prices; changes in raw material and energy Profit graphs and editorial comments throughout prices; changes in business strategy and various this report refer to results from operations that other factors. Should one or more of these risks may exclude asbestos-related expenses and adjustments, asset impairment charges, product or uncertainties materialize, or should underlying line discontinuation expenses, New Zealand assumptions prove incorrect, actual results may weathertightness claims, tax adjustments, loss on vary materially from those described herein. early debt extinguishment and acquisition costs These forward-looking statements are made as incurred prior to the close of Fermacell. of the date of this Annual Review and James 2 Hardie does not assume any obligation to update Unless otherwise stated for fiscal years 2020, 2019, them, except as required by law. Investors are 2018, 2017 and 2016 Adjusted EBIT graphs and editorial comments throughout this report refer to encouraged to review James Hardie’s Annual EBIT that may exclude asbestos-related expenses Report on Form 20-F, and specifically the risk and adjustments, asset impairment charges, factors discussed therein, as it contains important product line discontinuation expenses, New Zealand disclosures regarding the risks attendant to weathertightness claims and acquisition costs investing in our securities. incurred prior to the close of Fermacell. 2020 Annual Review 37
