Manufacturing

Dave Kessner –

Vice President Manufacturing

Kevin Yelle –

Director Manufacturing Support

Chris Davis –

Fontana Plant/Project Manager

Investor/Analyst USA Tour –

10 & 11 September 212

Exhibit 99.2

–

Learning

–

Go forward

AGENDA

Fiber

Cement

History/Evolution

–

David

Kessner

Capacity

–

Kevin

Yelle

Fontana

–

Chris

Davis

Dave Kessner –

Manufacturing Overview

1990:

Started with 4 tubs x 4 feet wide sheet machines

-

Interleavers

-

Finishing

-

No Coating

-

Coatings

–

Systems

developed

for

sheet

machine/finishing

2005:

Moved to 9 tubs  x 5 feet wide sheet machines

LONG TERM EVOLUTION

Low throughput (evolved from 40 mmsf to 90 mmsf)

Manual Handling

Higher throughput (90 mmsf to 200 mmsf)

Automation (No manual handling)

Primed

2002:

Higher

throughput

(250

mmsf)

–

Not

linear

Automation

Steel Interleavers

Capacity

for

FC

siding

with

ColorPlus

®

Technology

1997:

Moved to 6 tubs x 5 feet wide sheet machines

1990 –

2006

OPERATIONAL PHILOSOPHY

Throughput focused

Product mix (primarily textured plank)

Engineering driven

Single sourced specialty products

Supply constrained

2007 –

2011 (Housing Market Downturn)

-

Downsized plants

-

Treat all costs (except depreciation, tax and  insurance) as variable

-

Minimize waste

-

Cost per hour

*

Scalable, linear

-

Lowest delivered cash cost to market

-

Compressible spend per unit remained relatively flat

-

Developed better model for matching supply and demand and allowing flexibility

-

OPERATIONAL PHILOSOPHY

Excess capacity due to weak market demand

More complex product mix, increased # of SKUs resulted in shorter production

runs

Cash

cost

focused

–

High

focus

on

$

spent

given

significant

drop

in

volume

Key Areas of Success

Improved ability to manufacture

more complex SKU mix

2011 –

Present

-

Smooth

-

Thickness

-

Edge details

-

Precision cut

-

Packaging (job packs)

-

HardieTrim

®

*

East Coast

*

West Coast

-

HardieBacker

®

*

SE Capability

-

HardiePlank

®

*

HZ10 Plant with HZ5 flexibility

OPERATIONAL PHILOSOPHY

Product mix shift

Regional

sourcing

–

West,

Central

and

East

2012 and Beyond

-

Higher utilization of existing capacity

*

Duration vs. frequency of delay

*

Planned stops

*

Prepare for long continuous runs

-

Maintenance / Production

*

Working off  same game plan

*

Break work into smaller pieces

OPERATIONAL PHILOSOPHY

Peru Project

30% reduction

MACHINE OPERATIONS

Sheet Machine Delay

Kevin Yelle –

Capacity

Capacity ahead of demand

CAPACITY: 2012 –

2015

Ramp up “flex capacity”

Brownfield restart capacity

Greenfield capacity

Ramp Up Flex Capacity

CAPACITY: 2012 –

2015

Increase run time on operational lines

Restart idled lines in operational facilities

–

Example: Waxahachie sheet machine #1

*

East Coast HardieTrim

®

*

South East HardieBacker

®

CAPACITY: 2012 –

2015

Use regional supply/demand model to determine which plants/when

Fontana, CA options

Summerville, SC options

Provide additional flexibility

Support regional product mix concept

Examples

Brownfield Startups

Greenfield Plants

CAPACITY: 2012 –

2015

Use model to determine where and when

North options

Midsouth options

Pacific Northwest options

Chris Davis –

Fontana

1990 –

2007

FONTANA

Roofing

HardieBacker

®

,

HardiePanel

®

and

HardiePlank

®

support

for

out

of

market geographies

Manual handling

Inputs

high

–

utilities,

labor,

raw

materials

Be competitive in local market

Natural West Coast backer market, panel supplier for West Coast

Lead the business in low headcount operations

*

Multi skilled workforce

*

Automation

*

Culture of continuous improvement & work elimination

R&D Development Plant

Experiment with operational models

Leverage Fontana site resources

FONTANA –

RESTART

Make Fontana healthy longer term

Fontana: 2014 and Forward

Questions