James Hardie Industries (JHX) investor relations material

Company overview and growth strategy

• Focused on fiber cement siding and premium exterior solutions, with North America representing 80% of business.

• Recent merger with AZAC more than doubled addressable market to $23B, positioning as a leader in outdoor living and exterior solutions.

• Strong brands include James Hardie (siding), TimberTech (decking), and AZAC, all leading in their categories.

• Go-to-market strategy centers on material conversion, targeting contractors, dealers, and homeowners through training, service, and direct marketing.

• Long-term growth algorithm targets double-digit CAGR, with growth from market outperformance, price/mix, and revenue synergies.

Merger integration and synergy realization

• Integration with AZAC is progressing well, emphasizing a merger of equals and cultural alignment.

• Early cost synergy targets are being met or exceeded, with revenue synergies showing strong customer reception.

• Joint sales efforts and cross-selling are generating optimism and early wins, especially through winter buy programs.

• Contractor adoption of both product lines is incentivized, with lead sharing and success stories emerging.

• Commercial synergy benefits are not yet included in current guidance.

Market dynamics, guidance, and forecasting

• Guidance reflects a conservative approach due to a dynamic environment, with destocking and soft spring selling season impacting forecasts.

• Legacy AZAC and international businesses are performing well, while North American fiber cement faces new construction headwinds.

• Demand forecasting leverages a large sales force, macroeconomic data, and statistical models, with guidance extending through March.

• Inventory management is cautious, assuming continued market decline and defensive customer positioning.