Exhibit 99.4
Exhibit 99.4
Q4 FY13 MANAGEMENT PRESENTATION
23 May 2013
DISCLAIMER
This Management Presentation contains forward-looking statements. James Hardie may from time to time make forward-looking statements in its periodic reports filed with or furnished to the SEC, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases and other written materials and in oral statements made by the companys officers, directors or employees to analysts, institutional investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include: statements about the companys future performance; projections of the companys results of operations or financial condition; statements regarding the companys plans, objectives or goals, including those relating to strategies, initiatives, competition, acquisitions, dispositions and/or our products; expectations concerning the costs associated with the suspension or closure of operations at any of the companys plants and future plans with respect to any such plants; expectations regarding the extension or renewal of the companys credit facilities including changes to terms, covenants or ratios; expectations concerning dividend payments and share buy-backs; statements concerning the companys corporate and tax domiciles and structures and potential changes to them, including potential tax charges; statements regarding tax liabilities and related audits, reviews and proceedings; statements as to the possible consequences of proceedings brought against the company and certain of its former directors and officers by the Australian Securities and Investments Commission (ASIC); statements regarding the possible consequences and/or potential outcome of the legal proceedings brought against two of the companys subsidiaries by the New Zealand Ministry of Education and the potential product liabilities, if any, associated with such proceedings; expectations about the timing and amount of contributions to Asbestos Injuries Compensation Fund (AICF), a special purpose fund for the compensation of proven Australian asbestos-related personal injury and death claims; expectations concerning indemnification obligations; expectations concerning the adequacy of the companys warranty provisions and estimates for future warranty-related costs; statements regarding the companys ability to manage legal and regulatory matters (including but not limited to product liability, environmental, intellectual property and competition law matters) and to resolve any such pending legal and regulatory matters within current estimates and in anticipation of certain third-party recoveries; and statements about economic conditions, such as economic or housing recovery, the levels of new home construction and home renovations, unemployment levels, changes in consumer income, changes or stability in housing values, the availability of mortgages and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates, and builder and consumer confidence.
Words such as believe, anticipate, plan, expect, intend, target, estimate, project, predict, forecast, guideline, aim, will, should, likely, continue, may, objective, outlook and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. Forward-looking statements are based on the companys current expectations, estimates and assumptions and because forward-looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond the companys control. Such known and unknown risks, uncertainties and other factors may cause actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements. These factors, some of which are discussed under Risks Factors in Section 3 of the Form 20-F filed with the Securities and Exchange Commission on 2 July 2012, include, but are not limited to: all matters relating to or arising out of the prior manufacture of products that contained asbestos by current and former James Hardie subsidiaries; required contributions to AICF, any shortfall in AICF and the effect of currency exchange rate movements on the amount recorded in the companys financial statements as an asbestos liability; governmental loan facility to AICF; compliance with and changes in tax laws and treatments; competition and product pricing in the markets in which the company operates; the consequences of product failures or defects; exposure to environmental, asbestos, putative consumer class action or other legal proceedings; general economic and market conditions; the supply and cost of raw materials; possible increases in competition and the potential that competitors could copy the companys products; reliance on a small number of customers; a customers inability to pay; compliance with and changes in environmental and health and safety laws; risks of conducting business internationally; compliance with and changes in laws and regulations; the effect of the transfer of the companys corporate domicile from The Netherlands to Ireland, changes in corporate governance and potential tax benefits; currency exchange risks; dependence on customer preference and the concentration of the companys customer base on large format retail customers, distributors and dealers; dependence on residential and commercial construction markets; the effect of adverse changes in climate or weather patterns; possible inability to renew credit facilities on terms favourable to the company, or at all; acquisition or sale of businesses and business segments; changes in the companys key management personnel; inherent limitations on internal controls; use of accounting estimates; and all other risks identified in the companys reports filed with Australian, Irish and US securities agencies and exchanges (as appropriate). The company cautions you that the foregoing list of factors is not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those in forward-looking statements. Forward-looking statements speak only as of the date they are made and are statements of the companys current expectations concerning future results, events and conditions. The company assumes no obligation to update any forward-looking statements or information except as required by law.
2
AGENDA
Overview and Operating Review Louis Gries, CEO
Financial Review Russell Chenu, CFO
Questions and Answers
In this Management Presentation, James Hardie may present financial measures, sales volume terms, financial ratios, and Non-US GAAP financial measures included in the Definitions section of this document starting on page 51. The company presents financial measures that it believes are customarily used by its Australian investors. Specifically, these financial measures, which are equivalent to or derived from certain US GAAP measures as explained in the definitions, include EBITEBIT, marginOperating, profit before income taxes and Net operating profit. The company may also present other terms for measuring its sales volumes (million square feet or mmsf and thousand square feet or msf); financial ratios (Gearing ratio, Net interest expense cover, Net interest paid cover, Net debt payback, Net debt (cash)); and Non-US GAAP financial measures (EBIT excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses, EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses, Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments, Diluted earnings per share excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments, Operating profit before income taxes excluding asbestos, asset impairments and New Zealand product liability expenses, Effective tax rate on earnings excluding asbestos, asset impairments, New Zealand product liability expenses and tax adjustments, Adjusted EBITDA, General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs and Selling, general and administrative expenses excluding New Zealand product liability expenses). Unless otherwise stated, results and comparisons are of the 4th quarter and full year of the current fiscal year versus the 4th quarter and the full year of the prior fiscal year.
3
OVERVIEW AND OPERATING REVIEW
Louis Gries, CEO
GROUP OVERVIEW1
US$ Millions Q4 Q4 % %
FY 2013 FY 2012 Change FY 2013 FY 2012 Change
Net operating (loss) profit (69.5) 480.745.5 604.3 (92)
Net operating profit excluding asbestos, asset
impairments, ASIC expenses, New Zealand product 30.7 34.5 (11) 140.8 144.3 (2)
liability expenses and tax adjustments
Diluted earnings per share excluding asbestos, asset
impairments, ASIC expenses, New Zealand product liability 6.9 7.9 (13) 32.0 32.9 (3)
expenses and tax adjustments (US cents)
Fiscal year 2013 net operating profit reflects:
Asset impairment charges of US$16.9 million in the USA and Europe Fibre Cement segment
New Zealand product liability expenses of US$13.2 million, in the Asia Pacific Fibre Cement segment
Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments reflects, on a pre-tax basis, a foreign exchange gain of US$5.5 million on an Australian dollar intercompany loan and a recovery of US$2.7 million of legal costs relating to the conclusion of RCIs disputed amended assessment with the ATO
FY13 second half ordinary dividend of US13.0 cents per security and FY13 special dividend of US24.0 cents per security announced today. Both dividends will be paid on 26 July 2013, with a record date of
28 June 2013
1 Comparisons are of the 4th quarter and full year of the current fiscal year versus the 4th quarter and full year of the prior fiscal year 5
USA & EUROPE FC 4TH QUARTER SUMMARY 1
USA and Europe Fibre Cement results reflected:
Higher sales volume
Lower average net sales price
Lower input costs
Operating costs of re-commissioning idled capacity
Higher fixed manufacturing costs
Asset impairment charges of US$11.1 million
Higher organisational costs to fund initiatives that enhance capability in anticipation of an improved operating environment in the US housing market
1 Comparisons are of the 4th quarter of the current fiscal year versus the 4th quarter of the prior fiscal year 6
USA & EUROPE FIBRE CEMENT
4th Quarter Result 1
Net Sales up 7% to US$236.8 million
Sales Volume up 8% to 379.8 mmsf
Average Price down 1% to US$623 per msf
EBIT 2 up 4% to US$37.8 million
EBIT Margin 2 down 0.5 pts to 16.0%
1 Comparisons are of the 4th quarter of the current fiscal year versus the 4th quarter of the prior fiscal year
2 Excludes asset impairment charges of US$11.1 million and US$14.3 million in 4th quarter FY13 and the 4th quarter FY12, respectively
7
USA & EUROPE FIBRE CEMENT
Full Year Result 1
Net Sales up 10% to US$951.4 million
Sales Volume up 12% to 1,488.5 mmsf
Average Price down 1% to US$639 per msf
EBIT 2 flat from US$162.7 million to US$162.5 million
EBIT Margin 2 down 1.8 pts to 17.1%
1 Comparisons are of the full year of the current fiscal year versus the full year of the prior fiscal year
2 Excludes asset impairment charges of US$16.9 million and US$14.3 million in FY13 and FY12, respectively 8
USA AND EUROPE FIBRE CEMENT
Quarterly EBIT and EBIT Margin 1
140 35
120 30
100 25
M
$
US 80 20
EBIT 60 15
40 10
20 5
0 0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
EBIT EBIT Margin
1 Excludes asset impairment charges of US$38.6 million in 4th quarter FY08, US$14.3 million in 4th quarter FY12, US$5.8 million in
3rd quarter FY13 and US$11.1 million in 4th quarter FY13
9
USA FIBRE CEMENT
Top Line Growth
its)
Un
(000s M)
$
Starts (US
ue
/
(mmsf) Reven
lume
Vo
00 01 02 03 04 05 06 07 08 09 10 11 12 13
JH Volume Housing Starts JH Revenue
Market and category share tracked as planned in FY13
Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau 10
USA & EUROPE FIBRE CEMENT
Average Net Sales Price (US dollars)
680
US$639
640
MSF 600
per 560
$
US 520
480
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
11
US ORGANISATIONAL CAPABILITY INITIATIVES
The company incurred higher employment and marketing costs to strengthen organisational capabilities in fiscal year 2013
Such costs include:
Increase in headcount relative to 31 March 2012:
Manufacturing overheads to support start ups and capacity build up 10%
Marketing, Sales and General and Administrative up 15%
Supply Chain up 39%
R&D up 8%
Increase in sales and marketing expenses for promotions, tradeshows and advertising
New R&D facility opened in Q3 FY13 and continued investment in core R&D projects
Future sales growth is anticipated to exceed organisational cost increases, with EBIT to revenue margins expected to improve in financial year 2014
12
APFC 4TH QUARTER SUMMARY 1
Asia Pacific Fibre Cement results reflected:
Higher sales volume and average net sales price
Higher fixed manufacturing costs
Lower input costs (primarily pulp)
Competitive operating environment in Australia
An improved operating environment in New Zealand
Lower operating earnings in the Philippines business
1 Comparisons are of the 4th quarter of the current fiscal year versus the 4th quarter of the prior fiscal year 13
ASIA PACIFIC FIBRE CEMENT
4th Quarter Result 1
Net Sales up 2% to US$90.0 million
Sales Volume up 2% to 96.2 mmsf
Average Price up 1% to A$900 per msf
EBIT 2 down 6% to US$16.7 million
EBIT Margin 2 down 1.4 pts to 18.6%
1 Comparisons are of the 4th quarter of the current fiscal year versus the 4th quarter of the prior fiscal year
2 Excludes New Zealand product liability expenses of nil and US$3.4 million in 4th quarter FY13 and 4th quarter FY12, respectively
14
ASIA PACIFIC FIBRE CEMENT
Full Year Result 1
Net Sales down 2% to US$369.9 million
Sales Volume up from 392.3 mmsf to 393.7 mmsf
Average Price down 1% to A$911 per msf
EBIT 2 down 13% to US$74.9 million
EBIT Margin 2 down 2.5 pts to 20.3%
1 Comparisons are of the current fiscal year versus the prior fiscal year
2 Excludes New Zealand product liability expenses of US$13.2 million and US$5.4 million in FY13 and FY12, respectively
15
NEW AUSTRALIAN MANUFACTURING CAPACITY
James Hardie has entered into a contract to acquire the land and buildings at its existing Carole Park (Queensland) facility
The company will expand capacity at the site
Estimated expenditure of A$89 million for the purchase of property and construction of a six tub, high-through-put JHX sheet machine and finishing line
Construction is to commence in the first quarter of CY14 with the new capacity to be fully operational in the first half of CY15
Expected benefits of investment in the Carole Park facility include:
Enhanced product capability on core product lines
Scyon product manufacturing in Queensland
Lower freight costs
Improved operating efficiencies leading to lower manufacturing unit costs
Increased capacity of the Australian business to meet future demand
Production at our Rosehill (NSW) and Meeandah (Queensland) sites will continue
16
GROUP OUTLOOK
United States
US operating environment continues to reflect an increasing number of housing starts and improved house values
NAHB expects growth of US repair and remodel market to continue into CY13, albeit at a slower rate than the new housing market
The company is investing in capacity expansions through the re-commissioning of idled facilities, as well as funding market and organisational development initiatives
The company expects EBIT to revenue margins in FY14 to increase as growth in sales revenues is expected to exceed spending on organisational initiatives
Asia Pacific
In Australia, the market environment is likely to remain relatively subdued and the company is not anticipating any substantial increase in net sales in CY14
In New Zealand, the housing market continues to improve
In the Philippines, the business is expected to contribute improved operating earnings over the next twelve months 17
FINANCIAL REVIEW
Russell Chenu, CFO
FINANCIAL REVIEW
Summary
Fourth quarter and full year earnings impacted by:
Increased sales volume in the US business reflecting an improved market environment
Price in the US business constrained by targeted penetration into price-sensitive market segments
Initiatives in the US business to support market and organisational development in anticipation of an improved operating environment
Unfavourable movements in accounting provisions for legacy product liability claims in New Zealand, resulting in a charge of nil (Q4 FY13) and US$13.2 million (full year FY13)
Asset impairment charges of US$11.1 million (Q4 FY13) and US$16.9 million (full year FY13)
Non-recurring foreign exchange gain of US$5.5 million and recovery of RCI legal costs of US$2.7 million (full year FY13)
Total contribution of US$184.1 million (A$177.5 million) to AICF in the 2013 financial year
Dividends paid during the full year increased to US$188.5 million (US$17.4 million in FY12), reflecting a payment of US43.0 cents per security (US4.0 cents in FY12)
FY13 second half ordinary dividends of US13.0 cents per security and FY13 special dividend of US24.0 cents per security announced today. Both dividends will be paid on 26 July 2013
FY13 dividends announced today total US37.0 cents per security, together with the FY13 first half dividend of US5.0 cents per security, brings the full year 2013 dividend to US42.0 cents per security (US42.0 cents in FY12) 19
RESULTS Q4
US$ Millions Q4 13 Q4 12 % Change
Net sales 326.8 309.3 6
Gross profit 101.8 95.6 6
SG&A expenses (58.0) (48.9) (19)
Research & development expenses (9.4) (8.8) (7)
Asset impairments (11.1) (14.3) 22
Asbestos adjustments (131.6) (31.0)
EBIT (108.3) (7.4)
Net interest income (expense) 0.1 (3.7)
Other income 0.6 3.5 (83)
Income tax benefit 1 38.1 488.3 (92)
Net operating (loss) profit (69.5) 480.7
1 4th quarter FY12 includes US$485.2 million tax benefit arising on conclusion of RCIs disputed amended assessment with the ATO
20
RESULTS Q4 (CONTINUED)
US$ Millions Q4 13 Q4 12 % Change
Net operating (loss) profit (69.5) 480.7
Asbestos:
Asbestos adjustments 131.6 31.0
Other asbestos 1 (0.9) (0.6) (50)
Tax benefit related to asbestos adjustments (38.0) (2.6)
Asset impairments 11.1 14.3 (22)
ASIC expenses 2.1 0.1
New Zealand product liability expenses3.4
Tax adjustments 2 (5.7) (491.8) 99
Net operating profit excluding asbestos, asset
impairments, ASIC expenses, New Zealand
product liability expenses and tax adjustments 30.7 34.5 (11)
1 Includes AICF SG&A expenses and AICF interest income
2 4th quarter FY12 includes US$485.2 million tax benefit arising on conclusion of RCIs disputed amended assessment with the ATO 21
RESULTS FULL YEAR
US$ Millions
FY 2013 FY 2012 % Change
Net sales 1,321.3 1,237.5 7
Gross profit 419.3 407.0 3
SG&A expenses (218.6) (191.0) (14)
Research & development expenses (37.2) (30.4) (22)
Asset impairments (16.9) (14.3) (18)
Asbestos adjustments (117.1) (15.8)
EBIT 29.5 155.5 (81)
Net interest income (expense) 2.4 (7.4)
Other income 1.8 3.0 (40)
Income tax benefit 1 11.8 453.2 (97)
Net operating profit 45.5 604.3 (92)
1 FY12 includes US$485.2 million tax benefit arising on conclusion of RCIs disputed amended assessment with the ATO
22
RESULTS FULL YEAR (CONTINUED)
US$ Millions
FY 2013 FY 2012 % Change
Net operating profit 45.5 604.3 (92)
Asbestos:
Asbestos adjustments 117.1 15.8
Other asbestos 1 (5.3) (0.5)
Tax benefit related to asbestos adjustments (32.9) (2.7)
Asset impairments 16.9 14.3 18
ASIC expenses 2.6 1.1
New Zealand product liability expenses 13.2 5.4
Tax adjustments 2 (16.3) (493.4) 97
Net operating profit excluding asbestos, asset
impairments, ASIC expenses, New Zealand
product liability expenses and tax adjustments 140.8 144.3 (2)
1 Includes AICF SG&A expenses and AICF interest income 23
2 FY12 includes US$485.2 million tax benefit arising on conclusion of RCIs disputed amended assessment with the ATO
SEGMENT EBIT Q4
US$Millions
Q4 13 Q4 12 % Change
USA and Europe Fibre Cement 1 37.8 36.4 4
Asia Pacific Fibre Cement 2 16.7 17.7 (6)
Research & Development 3 (6.9) (5.5) (25)
Total segment EBIT excluding asset impairments
and New Zealand product liability expenses 47.6 48.6 (2)
General corporate costs excluding asbestos and (10.6) (6.7) (58)
ASIC expenses
Total EBIT excluding asbestos, asset
impairments, ASIC expenses and New Zealand 37.0 41.9 (12)
product liability expenses
Asbestos adjustments (131.6) (31.0)
AICF SG&A expenses (0.5) (0.5)
Asset impairments (11.1) (14.3) 22
ASIC expenses (2.1) (0.1)
New Zealand product liability expenses(3.4)
Total EBIT (108.3) (7.4)
1 USA and Europe Fibre Cement EBIT excludes asset impairments
2 Asia Pacific Fibre Cement EBIT excludes New Zealand product liability expenses
3 Research and development expenses include costs associated with research projects that are designed to benefit all business units. These
costs are recorded in the Research and Development segment rather than attributed to individual business units 24
SEGMENT EBIT FULL YEAR
USMillions$ FY 2013 FY 2012 % Change
USA and Europe Fibre Cement 1 162.5 162.7
Asia Pacific Fibre Cement 2 74.9 85.7 (13)
Research & Development 3 (26.0) (20.7) (26)
Total segment EBIT excluding asset impairments 211.4 227.7 (7)
and New Zealand product liability expenses
General corporate costs excluding asbestos and
ASIC expenses 4 (30.4) (32.8) 7
Total EBIT excluding asbestos, asset
impairments, ASIC expenses and New Zealand 181.0 194.9 (7)
product liability expenses
Asbestos adjustments (117.1) (15.8)
AICF SG&A expenses (1.7) (2.8) 39
Asset impairments (16.9) (14.3) (18)
ASIC expenses (2.6) (1.1)
New Zealand product liaiblity expenses (13.2) (5.4)
Total EBIT 29.5 155.5 (81)
1 USA and Europe Fibre Cement EBIT excludes asset impairment charges
2 Asia Pacific Fibre Cement EBIT excludes New Zealand product liability expenses
3 Research and development expenses include costs associated with research projects that are designed to benefit all business units. These
costs are recorded in the Research and Development segment rather than attributed to individual business units
4 General corporate costs excluding asbestos and ASIC expenses for the current fiscal year reflects a$legalUScost recovery of 2.7 million
associated with the conclusion of RCIs disputed amended tax assessment with the ATO and a US5.5$ million foreign exchange gain related
to an Australian dollar intercompany loan
25
INCOME TAX EXPENSE Q4
US$ Millions Q4 13 Q4 12
Operating loss before income taxes (107.6) (7.6)
Asbestos:
Asbestos adjustments 131.6 31.0
Other asbestos 1 (0.9) (0.6)
Asset impairments 11.1 14.3
New Zealand product liability expenses3.4
Operating profit before income taxes excluding asbestos,
asset impairments and New Zealand product liability 34.2 40.5
expenses
Income tax benefit 2 38.1 488.3
Asbestos:
Tax benefit related to asbestos adjustments (38.0) (2.6)
Tax adjustments 2 (5.7) (491.8)
Income tax expense excluding tax adjustments (5.6) (6.1)
Effective tax rate excluding asbestos, asset impairments,
New Zealand product liability expenses and tax 16.4% 15.0%
adjustments
1 Includes AICF SG&A expenses and AICF interest income
2 4th quarter FY12 includes US$485.2 million tax benefit arising on conclusion of RCIs disputed amended assessment with the ATO 26
INCOME TAX EXPENSE FULL YEAR
USMillions$ FY 2013 FY 2012
Operating profit before income taxes 33.7 151.1
Asbestos:
Asbestos adjustments 117.1 15.8
Other asbestos 1 (5.3) (0.5)
Asset impairments 16.9 14.3
New Zealand product liability expenses 13.2 5.4
Operating profit before income taxes excluding asbestos,
asset impairments and New Zealand product liability 175.6 186.1
expenses
Income tax benefit 2 11.8 453.2
Asbestos:
Tax benefit related to asbestos adjustments (32.9) (2.7)
Tax adjustments 2 (16.3) (493.4)
Income tax expense excluding tax adjustments (37.4) (42.9)
Effective tax rate excluding asbestos, asset impairments,
New Zealand product liability expenses and tax 21.3% 23.1%
adjustments
1 Includes AICF SG&A expenses and AICF interest income 27
2 FY12 includes US485.2 million tax benefit arising on conclusion of RCIs disputed amended assessment with$ the ATO
CASHFLOW 1
USMillions$ FY 2013 FY 2012
EBIT 29.5 155.5
Non-cash items:
Asbestos adjustments 117.1 15.8
Asset impairments 16.9 14.3
Other non-cash items 11.6 73.0
Net working capital movements (34.0) 82.1
Cash Generated By Trading Activities 141.1 340.7
Tax payments, net (83.3) 238.1
Change in other non-trading assets and liabilities 2 241.0 (127.1)
Change in asbestos-related assets & liabilities (5.3) (1.8)
Payment to the AICF (184.1) (51.5)
Interest paid (net) (0.1) (11.2)
Net Operating Cash Flow 109.3 387.2
Purchases of property, plant & equipment (61.1) (35.8)
Proceeds from sale of property, plant & equipment 1.4 0.3
Deposit on acquisition(14.4)
Common stock repurchased and retired(19.0)
Dividends paid (188.5) (17.4)
Proceeds from issuance of shares 26.3 11.0
Tax benefit from stock options exercised 3.5
Effect of exchange rate on cash (2.6) (6.1)
Movement In Net (Debt) Cash (111.7) 305.8
Beginning Net Cash (Debt) 265.4 (40.4)
Ending Net Cash 153.7 265.4
1 Certain reclassifications have been reflected in the prior period to conform with current period presentation
2 Includes restricted cash movements related to the early contribution made to AICF on 2 April 2012 (see page 33 for further information) 28
CAPITAL EXPENDITURE
US$ Millions FY 2013 FY 2012 % Change
USA and Europe Fibre Cement (including
Research and Development) 50.4 29.1 73
Asia Pacific Fibre Cement 10.7 6.7 60
Total 61.1 35.8 71
The company is expanding production capacity in anticipation of the continued improvement of
the operating environment and expects to incur significant capital expenditures in FY14 and
beyond to meet anticipated demand increases in its major markets
29
DEBT
The company refinanced its existing credit facilities during the fourth quarter of the 2013
financial year
At 31 March 2013:
US$ Millions
Total facilities 405.0
Gross debt
Cash 153.7
Net cash (153.7)
Unutilised facilities and cash 558.7
Weighted average remaining term of total facilities was 3.1 years at 31 March 2013, up from 0.9 years at 31 March
2012
Net cash of US$153.7 million compared to net cash of US$265.4 million at 31 March 2012
James Hardie remains well within its financial debt covenants
30
DIVIDENDS FROM FY13 EARNINGS
The company announced today an ordinary dividend of US13.0 cents per security (FY13 second half dividend) and a special dividend of US24.0 cents per security (FY13 special dividend)
Both dividends are declared in US currency and will be paid on 26 July 2013, with a record date of 28 June 2013
The FY13 second half dividend represents an early increase in the companys dividend payout ratio from between 20% and 30% to between 30% and 50% of net operating profit (excluding asbestos adjustments), which was announced in November 2012 to apply from FY14 onwards
The FY13 special dividend represents amounts that were not utilised in the companys share buyback program which expired in May 2013
Full year dividend of US42.0 cents per security (approximately US$185.5 million) is equal to prior full year dividend of US42.0 cents per security (US$183.8 million) 31
FUTURE SHAREHOLDER RETURNS
The company announced in November 2012 a dividend payout ratio of between 30% and 50% of net operating profit (excluding asbestos adjustments) from FY14 onwards
The company also announced today:
A new share buyback program to acquire up to 5% of issued capital over the next 12 months. The actual shares that the company may buyback will be subject to share price levels, consideration of the effect of the share buyback on return on equity, and capital requirements
If and to the extent the company does not undertake share buybacks during FY14, the company will consider further distributions to shareholders over and above those contemplated under the companys dividend policy subject to:
an assessment of the current and expected industry conditions in the groups major markets of the US and Australia
an assessment of the groups capital requirements, especially for funding of expansion and growth initiatives
global economic conditions and outlook, and
total net operating profit (excluding asbestos adjustments) for financial year 2014 32
ASBESTOS COMPENSATION
Summary
Updated actuarial report completed as at 31 March 2013
Discounted central estimate increased to A$1.694 billion from A$1.580 billion
Total contributions of US$184.1 million were made to AICF during FY13, including an early contribution of US$138.7 million made on 2 April 2012
In accordance with the terms of the AFFA, and the arrangements agreed with the NSW Government and AICF for the early contribution, the Company does not anticipate making a contribution to AICF in FY14
33
FUNDING ARRANGEMENTS
Net accounting liability under AFFA
A$ millions (except where stated) 31-Mar-13 31-Mar-12
Central Estimate Discounted 1,693.6 1,580.1
Discounting and inflation allowance (348.6) (267.0)
Provision for claims handling costs of AICF 36.2 44.3
Other US GAAP adjustments 21.8 25.9
Net assets of AICF (128.1) (32.7)
Contributions for asbestos research and education 1.8 2.1
Effect of tax (459.3) (446.5)
Net post-tax unfunded liability in A$ 817.4 906.2
Exchange rate US$ per A$1.00 1.0420 1.0402
Net post-tax unfunded liability in US$ millions 851.6 942.6
34
UPDATED ACTUARIAL ESTIMATE
7,000
6,000
5,000
million 4,000
$
A 3,586 3,604
3,000
3,131 3,079 3,169 3,027 3,124
2,811 2,906
2,000 2,661 2,525 2,513
1,685 1,782 1,694
1,000 1,536 1,568 1,517 1,555 1,355 1,426 1,537 1,478 1,580
0
30 Jun 2004 31 Mar 2005 30 June 2005 31 Mar 2006 30 Sept 2006 31 Mar 2007 31 Mar 2008 31 Mar 2009 31 Mar 2010 31 Mar 2011 31 Mar 2012 31 Mar 2013
Sensitivity Range (net, undiscounted) Discounted central estimate (net) Undiscounted central estimate (net)
35
NET CLAIMS
Net claims paid full year FY13:
KPMG
AICF AICF
Actuarial
A$ Millions Full Year Full Year
Estimate For
2013 2012
FY 2013*
Claims Paid 112.6 109.9 88.2
Legal Costs 8.7 12.3 10.9
Insurance and cross claim recoveries (35.7) (14.9) (23.8)
Total net claims costs 85.6 107.3 75.3
* FY13 Actuarial Estimate as of 31 March 2012
36
ASBESTOS FUND
A$ millions
AICF cash and investments31 March 2012 62.5
Contribution to AFFA by James Hardie 1 177.5
Insurance and cross claim recoveries 35.7
Interest income and unrealised gain on investments 7.7
Claims paid including legal costs (121.3)
Operating costs (4.0)
Repayment of NSW Government loan facility (29.7)
Other (0.3)
AICF net cash and investments31 March 2013 128.1
1 In accordance with Amended and Restated Final Funding Agreement
37
NEW ZEALAND WEATHERTIGHTNESS
Since FY02 James Hardie NZ subsidiaries have been joined to product liability claims that relate to buildings primarily constructed from 1998 to 2004
These claims often involve multiple parties and poor construction practices, and allege losses due to excessive moisture penetration
During FY13 the company recognised US$13.2 million in expenses related to NZ product liability claims
At 31 March 2013 the provision for NZ product liability claims was US$15.2 million
New Zealand Ministry of Education (MoE) claim:
On 16 April 2013, the MoE filed a representative action against two James Hardie NZ subsidiaries and other parties
The company is not yet able to determine the amount or range of loss, if any, that the NZ subsidiaries may be liable for
Accordingly, the company has not made a provision for the MoE claim
38
SUMMARY
Net operating profit of US$140.8 million, which excludes asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments reflected:
Improved sales volume in the US business reflecting an improved market environment
Price in the US business constrained by targeted penetration into price-sensitive market segments
Higher employment and marketing costs to strengthen organisational capabilities in anticipation of an improved operating environment in the US
Lower operating earnings from Asia Pacific
Non-recurring foreign exchange gain of US$5.5 million and recovery of RCI legal costs of US$2.7 million
Total contribution to AICF of US$184.1 million
Dividends paid of US$188.5 million
39
QUESTIONS
APPENDIX
FINANCIAL SUMMARY
USMillions$ Q4 13 Q4 12 % Change FY2013 FY2012 % Change
Net Sales
USA and Europe Fibre Cement $ 236.8 $ 220.7 7 $ 951.4 $ 862.0 10
Asia Pacific Fibre Cement 90.0 88.6 2 369.9 375.5 (2)
Total Net Sales $ 326.8 $ 309.3 6 $ 1,321.3 $ 1,237.5 7
1
EBITUSMillions$
USA and Europe Fibre Cement $ 37.8 $ 36.4 4 $ 162.5 $ 162.7 -
Asia Pacific Fibre Cement 16.7 17.7 (6) 74.9 85.7 (13)
Research & Development (6.9) (5.5) (25) (26.0) (20.7) (26)
General corporate costs excluding
asbestos and ASIC (10.6) (6.7) (58) (30.4) (32.8) 7
Total EBIT excluding asbestos, asset
impairments, ASIC expenses and
New Zealand product liability
expenses $ 37.0 $ 41.9 (12) $ 181.0 $ 194.9 (7)
Net interest expense excluding AICF
interest income (1.3) (4.8) 73 (4.6) (10.7) 57
Other income 0.6 3.5 (83) 1.8 3.0 (40)
Income tax expense excluding
asbestos and tax adjustments (5.6) (6.1) 7 (37.4) (42.9) 13
Net operating profit excluding
asbestos, asset impairments, ASIC
expenses, New Zealand product
liability expenses and tax
adjustments $ 30.7 $ 34.5 (11) $ 140.8 $ 144.3 (2)
1 USA and Europe Fibre Cement EBIT excludes asset impairments of US$11.1 million (4th quarter FY13), US$14.3 million (4th quarter FY12), US$16.9 million (FY13) and US$14.3 million (FY12). Asia Pacific Fibre Cement EBIT excludes New Zealand product liability expenses of nil (4th quarter FY13), US$3.4 million (4th quarter FY12), US$13.2 million (FY13) and US$5.4 million (FY12)
42
KEY RATIOS*
FY 2013 FY 2012 FY2011
EPS (Diluted) 1 32.0c 32.9c 26.7c
Dividend Paid per share 42.7c 4.0c N/A
Return on Shareholders Funds1, 3 10.4% 11.2% 10.0%
Return on Capital Employed 2, 3 20.4% 21.0% 19.7%
EBIT/ Sales (EBIT margin) 2 13.7% 15.7% 15.8%
Gearing Ratio 1 (12.9)% (24.4)% 32%.
Net Interest Expense Cover 2 39.3x 23.8x 22.9x
Net Interest Paid Cover 2 - 24.5x 21.8x
Net Debt Payback 3 0.2yrs
* Certain reclassifications have been reflected in the prior periods shown above to conform with current period presentation
1 Excludes asbestos adjustments, AICF SG&A expenses, AICF interest income, tax benefit related to asbestos adjustments, ASIC expenses/recoveries, asset impairments, New Zealand product liability expenses and tax adjustments
2 Excludes asbestos adjustments, AICF SG&A expenses, asset impairments, New Zealand product liability expenses and ASIC expenses/recoveries
3 Includes restricted cash set aside for AFFA
43
EBITDA Q4
USMillions$ Q4 13 Q4 12 % Change
EBIT
USA and Europe Fibre Cement 1 37.8 36.4 4
Asia Pacific Fibre Cement 2 16.7 17.7 (6)
Research & Development (6.9) (5.5) (25)
General corporate excluding asbestos and ASIC expenses (10.6) (6.7) (58)
Depreciation and Amortisation
USA and Europe Fibre Cement 3 10.8 14.7 (27)
Asia Pacific Fibre Cement 2.4 2.7 (11)
Total EBITDA excluding asbestos, asset impairments,
ASIC expenses and New Zealand product liability 50.2 59.3 (15)
expenses
Asbestos adjustments (131.6) (31.0)
AICF SG&A expenses (0.5) (0.5)
Asset impairments (11.1) (14.3) 22
ASIC expenses (2.1) (0.1)
New Zealand product liability expenses(3.4)
Total EBITDA (95.1) 10.0
1 Excludes asset impairments
2 Excludes New Zealand product liability expenses
3 USA and Europe Fibre Cement depreciation and amortisation in 4th quarter of FY13 includes a favourable accounting adjustment, 44
which is not expected to recur in the future, related to the companys estimated useful life for certain production assets
EBITDA FULL YEAR
FY 2013 FY 2012 % Change
USMillions$
EBIT
USA and Europe Fibre Cement 1 162.5 162.7
Asia Pacific Fibre Cement 2 74.9 85.7 (13)
Research & Development (26.0) (20.7) (26)
General corporate excluding asbestos and ASIC expenses (30.4) (32.8) 7
Depreciation and Amortisation
USA and Europe Fibre Cement 3 51.4 54.5 (6)
Asia Pacific Fibre Cement 9.8 10.7 (8)
Total EBITDA excluding asbestos, asset impairments,
ASIC expenses and New Zealand product liability
expenses 242.2 260.1 (7)
Asbestos adjustments (117.1) (15.8)
AICF SG&A expenses (1.7) (2.8) 39
Asset impairments (16.9) (14.3) (18)
ASIC expenses (2.6) (1.1)
New Zealand product liability expenses (13.2) (5.4)
Total EBITDA 90.7 220.7 (59)
1 Excludes asset impairments
2 Excludes New Zealand product liability expenses
3 USA and Europe Fibre Cement depreciation and amortisation in FY13 includes a favourable accounting adjustment, which is not 45
expected to recur in the future, related to the companys estimated useful life for certain production assets
GENERAL CORPORATE COSTS Q4
US$ Millions
Q4 13 Q4 12 % Change
Stock compensation expense 2.1 2.7 22
Other costs 8.5 4.0
General corporate costs excluding ASIC 10.6 6.7 (58)
expenses
ASIC expenses 2.1 0.1
General corporate costs 12.7 6.8 (87)
46
GENERAL CORPORATE COSTS FULL YEAR
US$ Millions
FY 2013 FY 2012 % Change
Stock compensation expense 10.8 11.1 3
Other costs 27.8 21.7 (28)
General corporate costs excluding ASIC
expenses, intercompany foreign exchange 38.6 32.8 (18)
gain and recovery of legal costs
ASIC expenses 26. 11.
Recovery of RCI legal costs (2.7)
Intercompany foreign exchange gain (5.5)
General corporate costs 33.0 33.9 3
47
NET INTEREST INCOME (EXPENSE)
US$ Millions
Q4 13 Q4 12 FY 2013 FY 2012
Gross interest expense (0.9) (0.8) (3.4) (3.7)
Interest income 0.2 0.3 0.9 0.5
Realised loss on interest rate swaps (0.6) (4.3) (2.1) (7.5)
Net interest expense excluding AICF interest income (1.3) (4.8) (4.6) (10.7)
AICF interest income 1.4 1.1 7.0 3.3
Net interest income (expense) 0.1 (3.7) 2.4 (7.4)
48
CHANGES IN A$ VERSUS US$
1.20
1.10
Rate 1.00
Exchange 0.90
$ 0.80
US
/
$
A 0.70
0.60
30 Jun 09 30 Sep 09 31 Dec 09 31 Mar 10 30 Jun 10 30 Sep 10 31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 30 Jun 12 30 Sep 12 31 Dec 12 31 Mar 13
Unfavourable impact from translation of Asia Pacific results Q4 FY13 Earnings Balance Sheet
vs Q4 FY12 N/A
Favourable impact on corporate costs incurred in Australian dollars
Q4 FY13 vs Q4 FY12 N/A
Unfavourable impact from translation of asbestos liability balance 31
March 2013 vs 31 March 2012
49
TOTAL US HOUSING STARTS
U.S. Housing starts
Calendar Quarters
800
600
400
200
0
-200
-400
-600
-800
-1000
-1200
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
(Thousand of starts)
Housing starts
%Growth (same QtrPY)
37.8%
36.1%
28.0%
25.2%
23%
23.4%
6%
17%
12%
-5%
-7%
-3%
-19%
-31%
-46%
-51%
-44%
-33%
-31%
-28%
-24%
-23%
-21%
-31%
-25%
-19%
-9%
6%
7%
7%
4%
4%
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
50
ENDNOTES
This Management Presentation forms part of a package of information about the companys results. It should be read in conjunction with the other parts of this package, including the Managements Analysis of Results, Media Release and Consolidated Financial Statements
Definitions
Non-financial Terms
ABS Australian Bureau of Statistics
AFFA Amended and Restated Final Funding Agreement
AICF Asbestos Injuries Compensation Fund Ltd
ASIC Australian Securities and Investments Commission
ATO Australian Taxation Office
NBSK Northern Bleached Soft Kraft; the companys benchmark grade of pulp
51
ENDNOTES (CONTINUED)
Financial Measures US GAAP equivalents
This document contains financial statement line item descriptions that are considered to be non-US GAAP, but are consistent with those used by Australian companies. Because the company prepares its consolidated financial statements under US GAAP, the following table cross-references each non-US GAAP line item description, as used in Managements Analysis of Results and Media Release, to the equivalent US GAAP financial statement line item description used in the companys consolidated financial statements:
Managements Analysis of Results and Consolidated Statements of Operations
Media Release and Other Comprehensive Income (Loss)
(US GAAP)
Net sales Net sales
Cost of goods sold Cost of goods sold
Gross profit Gross profit
Selling, general and administrative expenses Selling, general and administrative expenses
Research and development expenses Research and development expenses
Asbestos adjustments Asbestos adjustments
EBIT* Operating income (loss)
Net interest income (expense)* Sum of interest expense and interest income
Other income (expense) Other income (expense)
Operating profit (loss) before income taxes* Income (loss) before income taxes
Income tax (expense) benefit Income tax (expense) benefit
Net operating profit (loss)* Net income (loss)
*- Represents non-U.S. GAAP descriptions used by Australian companies.
52
ENDNOTES (CONTINUED)
EBIT margin EBIT margin is defined as EBIT as a percentage of net sales.
Sales Volumes mmsf million square feet, where a square foot is defined as a standard square foot of 5/16 thickness msf thousand square feet, where a square foot is defined as a standard square foot of 5/16 thickness
Financial Ratios
Gearing Ratio Net debt (cash) divided by net debt (cash) plus shareholders equity
Net interest expense cover EBIT divided by net interest expense (excluding loan establishment fees) Net interest paid cover EBIT divided by cash paid during the period for interest, net of amounts capitalised Net debt payback Net debt (cash) divided by cash flow from operations Net debt (cash) Short-term and long-term debt less cash and cash equivalents Return on Capital employed EBIT divided by gross capital employed
53
NON-US GAAP FINANCIAL MEASURES
EBIT and EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses
EBIT and EBIT margin excluding asbestos, asset impairments, ASIC expenses and New Zealand product liability expenses are not measures of financial performance under US GAAP and should not be considered to be more meaningful than EBIT and EBIT margin. Management has included these financial measures to provide investors with an alternative method for assessing its operating results in a manner that is focussed on the performance of its ongoing operations and provides useful information regarding its financial condition and results of operations. Management uses these non-US GAAP measures for the same purposes
Q4 Q4
US$Millions FY 2013 FY 2012 FY 2013 FY 2012
EBIT $ (108.3) $ (7.4) $ 29.5 $ 155.5
Asbestos:
Asbestos adjustments 131.6 31.0 117.1 15.8
AICF SG&A expenses 0.5 0.5 1.7 2.8
Asset impairments 11.1 14.3 16.9 14.3
ASIC expenses 2.1 0.1 2.6 1.1
New Zealand product liability expenses3.4 13.2 5.4
EBIT excluding asbestos, asset impairments, ASIC
expenses and New Zealand product liability
expenses 37.0 41.9 181.0 194.9
Net sales $ 326.8 $ 309.3 $ 1,321.3 $ 1,237.5
EBIT margin excluding asbestos, asset
impairments, ASIC expenses and New Zealand
product liability expenses 11.3% 13.5% 13.7% 15.7%
54
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments Net operating profit excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than net operating profit. Management has included this financial measure to provide investors with an alternative method for assessing its operating results in a manner that is focussed on the performance of its ongoing operations. Management uses this non-US GAAP measure for the same purposes
Q4 Q4
US$Millions FY 2013 FY 2012 FY 2013 FY 2012
Net operating (loss) profit $ (69.5) $ 480.7 $ 45.5 $ 604.3
Asbestos:
Asbestos adjustments 131.6 31.0 117.1 15.8
AICF SG&A expenses 0.5 0.5 1.7 2.8
AICF interest income (1.4) (1.1) (7.0) (3.3)
Tax benefit related to asbestos adjustments (38.0) (2.6) (32.9) (2.7)
Asset impairments 11.1 14.3 16.9 14.3
ASIC expenses 2.1 0.1 2.6 1.1
New Zealand product liability expenses3.4 13.2 5.4
Tax adjustments (5.7) (491.8) (16.3) (493.4)
Net operating profit excluding asbestos, asset
impairments, ASIC expenses, New Zealand product
liability expenses and tax adjustments $ 30.7 $ 34.5 $ 140.8 $ 144.3
55
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
Diluted earnings per share excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments Diluted earnings per share excluding asbestos, asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than diluted earnings per share. Management has included this financial measure to provide investors with an alternative method for assessing its operating results in a manner that is focussed on the performance of its ongoing operations. Management uses this non-US GAAP measure for the same purposes
Q4 Q4
USMillions$ FY 2013 FY 2012 FY 2013 FY 2012
Net operating profit excluding asbestos, asset
impairments, ASIC expenses, New Zealand
product liability expenses and tax adjustments $ 30.7 $ 34.5 $ 140.8 $ 144.3
Weighted average common shares outstanding
Diluted (millions) 442.6 437.5 440.6 437.9
Diluted earnings per share excluding asbestos,
asset impairments, ASIC expenses, New Zealand
product liability expenses and tax adjustments
(US cents) 6.9 7.9 32.0 32.9
56
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
Effective tax rate excluding asbestos, asset impairments, New Zealand product liability expenses and tax adjustments
Effective tax rate on earnings excluding asbestos, asset impairments, New Zealand product liability expenses and tax adjustments is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than effective tax rate. Management has included this financial measure to provide investors with an alternative method for assessing its operating results in a manner that is focussed on the performance of its ongoing operations. Management uses this non-US GAAP measure for the same purposes
Q4 Q4
US$ Millions FY 2013 FY 2012 FY 2013 FY 2012
Operating (loss) profit before income taxes $ (107.6) $ (7.6) $ 33.7 $ 151.1
Asbestos:
Asbestos adjustments 131.6 31.0 117.1 15.8
AICF SG&A expenses 0.5 0.5 1.7 2.8
AICF interest income (1.4) (1.1) (7.0) (3.3)
Asset impairments 11.1 14.3 16.9 14.3
New Zealand product liability expenses3.4 13.2 5.4
Operating profit before income taxes excluding asbestos, asset
impairments and New Zealand product liability expenses $ 34.2 $ 40.5 $ 175.6 $ 186.1
Income tax benefit 38.1 488.3 11.8 453.2
Asbestos:
Tax benefit related to asbestos adjustments (38.0) (2.6) (32.9) (2.7)
Tax adjustments (5.7) (491.8) (16.3) (493.4)
Income tax expense excluding asbestos and tax adjustments (5.6) (6.1) (37.4) (42.9)
Effective tax (benefit) rate 35.4% 6425.0% (35.0%) (299.9%)
Effective tax rate excluding asbestos, asset impairments, New
Zealand product liability expenses and tax adjustments 16.4% 15.0% 21.3% 23.1% 57
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
Adjusted EBITDA is not a measure of financial performance under US GAAP and should not be considered an alternative to, or more meaningful than, income from operations, net income or cash flows as defined by US GAAP or as a measure of profitability or liquidity. Not all companies calculate Adjusted EBITDA in the same manner as James Hardie has and, accordingly, Adjusted EBITDA may not be comparable with other companies. Management has included information concerning Adjusted EBITDA because it believes that this data is commonly used by investors to evaluate the ability of a companys earnings from its core business operations to satisfy its debt, capital expenditure and working capital requirements
Q4 Q4
US$ Millions FY 2013 FY 2012 FY 2013 FY 2012
EBIT $ (108.3) $ (7.4) $ 29.5 $ 155.5
Depreciation and amortisation 13.2 17.4 61.2 65.2
Adjusted EBITDA $ (95.1) $ 10.0 $ 90.7 $ 220.7
58
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs
General corporate costs excluding ASIC expenses, intercompany foreign exchange gain and recovery of RCI legal costs is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than general corporate costs. Management has included these financial measures to provide investors with an alternative method for assessing its operating results in a manner that is focussed on the performance of its ongoing operations and provides useful information regarding its financial condition and results of operations. Management uses these non-US GAAP measures for the same purposes
Q4 Q4
US$ Millions FY 2013 FY 2012 FY 2013 FY 2012
General corporate costs $ 12.7 $ 6.8 $ 33.0 $ 33.9
Excluding:
ASIC expenses (2.1) (0.1) (2.6) (1.1)
Intercompany foreign exchange gain 5.5
Recovery of RCI legal costs 2.7
General corporate costs excluding ASIC
expenses, intercompany foreign exchange gain
and recovery of RCI legal costs $ 10.6 $ 6.7 $ 38.6 $ 32.8
59
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
Selling, general and administrative expenses excluding New Zealand product liability expenses Selling, general and administrative expenses excluding New Zealand product liability expenses is not a measure of financial performance under US GAAP and should not be considered to be more meaningful than selling, general and administrative expenses. Management has included these financial measures to provide investors with an alternative method for assessing its operating results in a manner that is focussed on the performance of its ongoing operations and provides useful information regarding its financial condition and results of operations. Management uses these non-US GAAP measures for the same purposes
Q4 Q4
USMillions$ FY 2013 FY 2012 FY 2013 FY 2012
Selling, general and administrative expenses $ 58.0 $ 48.9 $ 218.6 $ 191.0
Excluding:
New Zealand product liability expenses (3.4) (13.2) (5.4)
Selling, general and administrative expenses
excluding New Zealand product liability expenses $ 58.0 $ 45.5 $ 205.4 $ 185.6
Net Sales $ 326.8 $ 309.3 $ 1,321.3 $ 1,237.5
Selling, general and administrative expenses as a
percentage of net sales 17.7% 15.8% 16.5% 15.4%
Selling, general and administrative expenses
excluding New Zealand product liability expenses as
a percentage of net sales 17.7% 14.7% 15.5% 15.0%
60
Q4 FY13 MANAGEMENT PRESENTATION
23 May 2013