West and Canada Review
Sean Gadd –
Vice President Western USA and Canada
Investor/Analyst Tour –
10 & 11 September 2012
1
Exhibit 99.5

AGENDA
•
Western USA and Canada macro environment
•
Western USA and Canada housing starts and market standards
•
West strategic growth strategy
•
Current comparative market share
•
Pacific Northwest opportunities
•
Pacific Northwest game plans
•
Questions
2

•
Housing permits this year are up slightly
•
Housing starts are showing signs of slow organic growth
•
Multi-family starts continue to increase with increased demand for
rental properties
•
Labor and input costs increasing as supply tightens
•
Builders beginning to put money back into their homes as they look
to differentiate and grow as the market returns
•
Repair and remodel will continue to be strong as homeowners put
money into their homes
3
WEST AND CANADA MACRO ENVIRONMENT

WESTERN US AND CANADA STARTS DATA
US Starts Source:
Dodge, McGraw-Hill Construction Residential Dwelling Units Report, 2012 Q3 Release
4
•
Housing starts are showing signs of slow organic growth
•
Multi-family increasing at a faster rate than single-family new construction

WESTERN US AND CANADA REGIONS
5

WEST STRATEGIC GROWTH STRATEGY
6
•
Grow and defend our overall market position in all market
segments with our channel partners
•
Offer differentiated products with superior value to that of our
competitors
Strategy:
Strategic Stretch Goal:
•
Grow fiber cement to high share position
•
Maintain market share for James Hardie by best meeting the
needs of the market

CURRENT STATE –
MARKET SHARE
British Columbia
Colorado
Northern California
Alberta
Saskatchewan
Manitoba
Oregon
Washington
Ontario
Quebec
Southern California
Idaho, Montana,
Wyoming, Nevada,
Phoenix, New Mexico
High
High
Low
7
Market
Share

STRATEGY FOR HIGH MARKET SHARE MARKETS
•
Washington & Oregon are in-line with both our category share and
market share targets
-
Still room to grow
-
Need to defend our category share
•
Move the market from a basic primed plank to a differentiated full
wrap solution.
8

PRODUCT SHIFT TO DEFEND & GROW
•
James Hardie
®
siding and trim for second move-up and semi-custom homes in single-family
segment
•
Artisan
®
with Artisan
®
Trim for the top of the single-family segment and repair and remodel
segment
•
James
Hardie
®
siding
and
trim
with
ColorPlus
®
technology
in
the
repair
and
remodel
segment
9
FY 08
FY 12
End State

PACIFIC NORTHWEST OPPORTUNITIES
•
Provide the market with the desired wood look without the maintenance
through a full wrap solution
•
Increase the paint cycle of the home, ensure the home looks better
longer through our ColorPlus
®
technology
•
Increase the value to the builder and homeowner
•
Market needs to be educated as it takes time to bear out
•
Reference product is HardiePlank
®
, wood trim with open eaves
10

REFERENCE PRODUCT
HardiePlank®
with wood trim
and open eaves
HardiePlank®
with
HardieTrim®
11

PACIFIC NORTHWEST CHANNEL GAME PLAN
•
Restricted 2-step distribution
•
Support and work with our channel partners to enable product and
segment growth
•
Both Washington and Oregon are highly fragmented, making
distribution involvement and alignment critical
•
Job packs to the piece to enable smaller dealers to participate
competitively and profitably
•
High service model to support low inventory in market
12

PACIFIC NORTWEST DEALERS
•
Dealer segmentation to best align our goals with their business
models
•
Educate the dealer on how to purchase and profitably promote
James
Hardie
®
fiber
cement
siding
with
ColorPlus
®
technology
•
Educate and convert contractor and builder to a full wrap solution
with our channel partners
•
Provide the dealer partners with tools to educate the market
13

PACIFIC NORTHWEST SINGLE FAMILY GAME PLAN
•
Need to educate builders around the significant value that we
bring to their customers, enabling them to sell their homes for
more money or sell their homes faster
•
Education is important
-
There is a price premium versus the market standard and
-
It requires some changes to sequencing of their job site
•
Thus we follow a market development approach
-
Segmentation
-
Model home marketing and leveraging
14

PACIFIC NORTHWEST MULTI FAMILY GAME PLAN
•
Life cycle costs, particularly for long term owners
•
Protection for the owner
•
ColorPlus
®
is
generally
the
lowest
installed
cost
•
Long-term aesthetics and design flexibility
15
c

•
Repair and remodel follows the new construction market standard
•
We educate the homeowner through the contractor
•
Partnering
with
contractors
by
providing
business
building
tools
to
help them  grow their business with us
•
Working with contractors in specific neighborhoods to shift the market
standard
to
James
Hardie
®
siding
with
ColorPlus
®
technology full
wrap
16
PACIFIC NORTHWEST REPAIR & REMODEL GAME PLAN

SUMMARY
•
Markets experiencing organic growth
•
Grow and defend our overall market position in all market segments
with our channel partners
•
Offering differentiated products with superior value to that of our
competitors
•
Achieve this with the help of our channel partners, both 2 step
distribution and our dealers, and
•
Having clear game plans for all market segments
17

Questions
18