EX-99.1 2 d571776dex991.htm EX-99.1 EX-99.1
INVESTOR PRESENTATION
1
Exhibit 99.1
JULY/AUGUST 2013

Investor Presentation
2
This investor 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 company’s 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 company’s future performance; 
•
projections of the company’s results of operations or financial condition; 
•
statements regarding the company’s 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 company’s plants and future plans with respect to any such plants; 
•
expectations regarding the extension or renewal of the company’s credit facilities including changes to terms, covenants or ratios; 
•
expectations concerning dividend payments and share buy-backs; 
•
statements concerning the company’s 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 company’s 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 company’s warranty provisions and estimates for future warranty-related costs; 
•
statements regarding the company’s 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 company’s 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 company’s 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 “Risk Factors” in Section 3 of
the Form 20-F filed with the Securities and Exchange Commission on 27 June 2013, 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 company’s 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 company’s products; reliance on a small number of customers; a customer’s 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 company’s corporate domicile from The Netherlands to Ireland including changes in corporate governance and potential tax
benefits; currency exchange risks; dependence on customer preference and the concentration of the company’s 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 company’s key management personnel; inherent limitations on internal controls; use of accounting estimates; and all other risks identified in the company’s 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 company’s 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.
Disclaimer

Investor Presentation
Agenda
3
•
Business Overview
•
USA & Europe Fibre Cement
•
Asia Pacific Fibre Cement 
•
Group Outlook
•
Summary
•
Appendix
In this Investor 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 26. 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 “EBIT”,
“EBIT margin”, “Operating 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.

Investor Presentation
JHX: A GROWTH FOCUSED COMPANY
Annual net sales US$1.3b
Total assets US$1.2b
Net cash US$154m
Operations in North America, Asia Pacific and Europe
2,700 employees
Market cap US$4.3b
S&P/ASX 100 company
NYSE ADR listing   
Note:
Market
capitalization,
net
sales
annualised,
total
assets
and
net
cash
are
at
31
March
2013.
Total
assets
exclude
asbestos
compensation.
4

Investor Presentation
GROUP OVERVIEW
1
Comparisons
are
of
the
4
th
quarter
and
full
fiscal
year
as
at
31
March
2013
versus
the
4
th
quarter
and
full
year
result
of
the
prior
fiscal
year.
2
Includes $485.2m tax benefit arising on conclusion of RCI’s disputed amended assessment with the Australian Taxation Office.
1
5
2
2

JHX: A WORLD LEADER IN FIBRE CEMENT
USA Fibre Cement Products
Siding
Soffit
Fascia
Trim
Backerboard
Asia Pacific Fibre Cement Products
Residential siding
Commercial exteriors
Flooring
Ceilings and internal walls
6
Investor Presentation

Investor Presentation
GLOBAL BUSINESS PORTFOLIO
All numbers are for the financial year ended 31 March 2013
7
21%
Volume
72%
68%
32%
EBIT*
USA  and Europe Fibre Cement
Asia-Pacific Fibre Cement
79%
28%
Net Sales
*  EBIT – Excludes Research and Development EBIT, Asbestos-related items, Asset impairment charges, New Zealand product liability expenses and general corporate costs. 

Investor Presentation
FIBRE CEMENT –
SUPERIOR PRODUCT PERFORMANCE
Fibre cement is more durable than wood and engineered wood, looks and performs
better than vinyl, and is more cost effective and quicker to build with than brick
Fibre
Cement
Vinyl
Engineered
Wood
Fire resistant
Hail resistant
Resists warping
Resists buckling
Colour lasts longer
Dimensional stability
Can be repainted
8

Investor Presentation
7
th
Generation
versus
2
nd
Generation
generic
fibre
cement
The HardieZone™
System represents a logical extension of Hardie technology
9
PRODUCT
LEADERSHIP
EXAMPLE
–
HARDIEZONE™
SYSTEM
•
•

Investor Presentation
THE
USA
BUSINESS
–
LARGEST
FIBRE
CEMENT
PRODUCER
IN
NORTH
AMERICA
10

Investor Presentation
USA FIBRE CEMENT
Rolling 12 month average of seasonally adjusted estimate of housing starts by US Census Bureau
Market and category share tracked as planned in FY13
11

Investor Presentation
USA & EUROPE FIBRE CEMENT
Quarterly EBIT and EBIT Margin
12
1 
Excludes
asset
impairment
charges
of
US$38.6
million
in
4
th
quarter
FY08,
US$14.3
million
in
4
th
quarter
FY12,
US$5.8
million
in
3
rd
quarter
FY13
and
US$11.1
million
in
4
th
quarter
FY13
1

Investor Presentation
USA & EUROPE FIBRE CEMENT
Average Net Sales Price (US dollars)
13
US$639

Investor Presentation
TOTAL US HOUSING STARTS
14

Investor Presentation
ASIA PACIFIC FIBRE CEMENT
Five manufacturing plants in Asia
Pacific
Net sales US$370m
EBIT US$75m
Higher value differentiated products
Lower delivered cost
Growth model
Asia Pacific manufacturing facilities.
Net Sales and EBIT for the financial year ended 31 March 2013, and EBIT excludes New Zealand product liability expenses of US$13.2 million.
15
1
1
1

Investor Presentation
ASIA
PACIFIC
FIBRE
CEMENT
-
EXAMPLES
Ceilings and partitions
Philippines
Exterior cladding
Australia
General purpose flooring
Australia
New Zealand
Interior walls
16

Investor Presentation
17
•
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 company’s
dividend policy subject to:
•
an
assessment
of
the
current
and
expected
industry
conditions
in
the
group’s
major
markets
of
the
US and Australia
•
an assessment of the group’s 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
•
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 on 23 May 2013:
FUTURE SHAREHOLDER RETURNS

Investor Presentation
GROUP OUTLOOK
United States
The 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 refurbishment and                      
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 growth in organisational spend
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
18

Investor
Presentation
SUMMARY
We have a strong, well-established, growth-focused, strong cash-generating and
high return business
We have a sustainable competitive advantage
Our model for strong growth is based on:
Large market opportunity
Superior value proposition
Proprietary and/or protected technology
Ongoing commitment to research and development
Significant organisational advantages
Focused strategy and organisational effort
Scale
Throughout the low demand environment the company has performed exceptionally
well, consistently delivering solid financial returns
The company is well positioned to leverage its increased capabilities as the housing
market recovery progresses
19

APPENDIX
20

Investor Presentation
GLOBAL STRATEGY
Industry
leadership and profitable growth
Aggressively grow demand for
our products in targeted market
segments
Grow our overall market position
while defending our share in
existing market segments
Introduce differentiated products
to deliver a sustainable
competitive advantage
21

Investor
Presentation
KEY RATIOS   
*
*
Certain reclassifications have been reflected in the prior periods shown above to conform with current period presentation
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
22
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
FY 2013
FY 2012
FY2011
EPS (Diluted)
32.0c
32.9c
26.7c
Dividend Paid per share
42.7c
4.0c
N/A
Return on Shareholders’
Funds
1, 3 
10.4%
11.2%
10.0%
Return on Capital Employed
2, 3
20.4%
21.0%
19.7%
EBIT/ Sales (EBIT margin)
13.7%
15.7%
15.8%
Gearing Ratio
(12.9)%
(24.4)%
3.2%
Net Interest Expense Cover
39.3x
23.8x
22.9x
Net Interest Paid Cover
-
24.5x
21.8x
Net Debt Payback
-
-
0.2yrs
1
1
2
2 
3
2

Investor Presentation
USA & EUROPE 5 YEAR RESULTS OVERVIEW
FY09
FY10
FY11
FY12
FY13
Net Sales
US$m
929
828
814
862
951
Sales Volume
mmsf
1,527
1,304
1,248
1,332
1,489
Average Price
US$ per msf
609
635
652
647
639
EBIT
US$m
199
209
160
163
163
EBIT Margin %
21
25
20
19
17
23
1
1
Excludes
asset
impairment
charges
of
US$14.3
million
and
US$16.9
million
in
FY12
and
FY13,
respectively.
1

Investor Presentation
ASIA PACIFIC 5 YEAR RESULTS OVERVIEW
FY09
FY10
FY11
FY12
FY13
Net Sales
US$m
273
297
353
376
370
Sales Volume
mmsf
391
390
408
392
394
Average Price
US$ per msf
879
894
916
916
911
EBIT
US$m
47
59
79
86
75
EBIT Margin %
17
20
23
23
20
24
1
1
Excludes New Zealand product liability expenses of US$5.4 million and US$13.2 million in FY12 and FY13, respectively.
1

Investor Presentation
FINANCIAL SUMMARY
1
USA
and
Europe
Fibre
Cement
EBIT
excludes
asset
impairments
of
US$11.1
million
(4
quarter
FY13),
US$14.3
million
(4
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
(4
quarter
FY13),
US$3.4
million
(4
quarter
FY12),
US$13.2
million
(FY13)
and
US$5.4
million
(FY12)
1
25
th
th
th
th
US$ Millions
% Change
% 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
EBIT -
US$ Millions
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)
Q4 '13
Q4 '12
FY2013
FY2012

Investor
Presentation
ENDNOTES
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 company's benchmark grade of pulp
26
This investor presentation forms part of a package of information about the company’s results. It should be read in conjunction with the company’s most
recent results material  for Q4 and full year 2013,  including  Management’s Analysis of Results, Media  Release and Consolidated Financial Statements.

Investor
Presentation
ENDNOTES (CONTINUED)
27
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 Management’s Analysis of Results and Media
Release,
to
the
equivalent
US
GAAP
financial
statement
line
item
description
used
in
the
company’s
consolidated
financial
statements:
Management's 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.

Investor
Presentation
ENDNOTES (CONTINUED)
28
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

Investor Presentation
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.
29
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 expenses
-
3.4
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%

Investor Presentation
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.
30
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 expenses
-
3.4
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

Investor
Presentation
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.
31
Q4
Q4
US$ Millions
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

Investor
Presentation
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.
32
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 expenses
-
3.4
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%

Investor
Presentation
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
company’s
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
33

Investor
Presentation
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
34
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
General
corporate
costs
excluding
ASIC
expenses,
intercompany
foreign
exchange
gain
and
recovery
of
RCI
legal
costs
–
General
Q4
US$ Millions
FY 2012
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
Q4
FY 2013
FY 2013

Investor
Presentation
NON-US GAAP FINANCIAL MEASURES (CONTINUED)
35
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
US$ Millions
FY 2012
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%
Q4
FY 2013
FY 2013

INVESTOR
PRESENTATION
36
JULY/AUGUST 2013