Asia Pacific Manufacturing
Danny De Guzman
Investor/Analyst
Update
–
19
September
2012
Exhibit 99.14

•
Asia Pacific Manufacturing History
•
Operational Philosophy
•
Asia
Pacific
Manufacturing
–
Onward
•
Capacity
AGENDA

LONG TERM EVOLUTION
1980s:
Converted
from
AC
to
Fibre
Cement
(FC)
Technology
•
Converted our entire product capability to FC
1990s:
Increased
Machine
Efficiency
with
FC
Technology
•
Higher throughput per Machine
•
Evolved
Technology
on
Sheet
Machine
–
Pressed
Products,
Tub/Feed
Technology
•
Consolidated
Multiple
Factories
to
Three
Sites
(two
in
AUS,
one
in
NZ)
•
Constructed our Philippines Plant
TM
2000-2005:
Capacity
for
Finishing
Processes
•
Increased our capacity in Finishing
•
Further developed our product portfolio through finishing processes
•
Relocated
our
WA
operations
to
Carole
Park
-
Corrugate
Products
2005-2012:
Developed
our
Scyon 
Technology
•
New Technology to Unlock Market Value

CURRENT STATE
Manufacturing Sites
•
Rosehill, NSW
–
25mmstdm, Scyon
TM
, Flooring
•
Carole Park, QLD
–
18mmstdm, Pressed Products
•
Penrose, New Zealand
–
11mmstdm, Scyon
TM
•
Cabuyao, Philippines
–
19mmstdm

1990 –
2005
•
Throughput focused
•
Core product portfolio developed
•
Engineering driven
•
Single sourced specialty products
OPERATIONAL PHILOSOPHY

2005 –
2010 (New Product Development)
•
Focus on New Product Development
-
Scyon
Product
Range
-
Exterior Cladding
-
Flooring
•
New product learning curve
-
Increased complexity in factories
-
From single step manufacturing to multiple steps
•
Increased Service Promise
-
Reduced lead time
-
Developed new models for planning and logistics
OPERATIONAL PHILOSOPHY
TM

2010 –
2012 (Operational Efficiency)
•
Bed-in operational complexity
-
Focus on efficiency
•
Utilisation and spend focus to reduce costs
-
Treat all costs (except depreciation, tax and insurance) as variable
-
Minimize waste
-
Cost per hour
*
Scalable, linear
-
Lowest delivered cash cost to market
•
Key areas of success
-
Developed better model for matching supply and demand and allowing flexibility
-
Improved ability to manufacture more complex SKU mix
OPERATIONAL PHILOSOPHY

ASIA PAC MANUFACTURING –
ONWARD

2012 –
Onward
•
Product leadership
-
Continuous manufacturing improvement of current products
-
Available capacity to develop new products and meet demand
*
Long
term
capacity
review
–
ongoing
•
Low cost manufacturing
-
Long continuous run
*
Duration vs. frequency of delay
*
Higher utilisation of existing capacity
-
Variable spend/cost
*
Treat all spend/cost as variable
ASIA PAC MANUFACTURING –
ONWARD

LOGO

 

LONG CONTINUOUS RUN

Total Delay – Sheet Machines

ASIA PAC MANUFACTURING
Summary
•
Manufacturing aligned to business strategy
•
Imperatives are clear:
-
Deliver on product promise
-
Low cost manufacturing
•
Framework to drive initiatives in place
-
Focus on execution and continuous improvements
•
Execution of initiatives on-going
-
Early
traction
–
more
work
ahead
of
us
-
Capacity
–
study
ongoing
+
recommendation
pending
•
Organizational development and safety approach in place
-
We’ve got the right people
-
Capability and execution improving

Long Term Capacity
•
Capacity
review
team
–
in
place
•
Capacity
review
–
ongoing
•
Recommendation
–
pending
•
Preliminary insights
-
Land component higher vs. USA capacity projects
-
Labor for construction and operations higher vs. USA capacity projects
-
Input
material
and
freight
costs
–
potential
major
drivers
•
Capacity study further work:
-
Determine size of capacity addition
-
Determine product capability in new capacity
AUSTRALIA CAPACITY REVIEW

Questions