J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
®
Solid FoundationS
2013 Annual Review
James Hardie Industries plc
(ARBN 097 829 895)
Incorporated in Ireland with its registered office
at Second Floor, Europa House, Harcourt Centre,
Harcourt Street, Dublin 2, Ireland and registered
number 485719. The liability of its members is limited.
FY13 Results at a Glance
ADJUSTED NET OPERATING
PROFIT 1 (US$m)
US$140.8m
NET SAL ES (US$m)
US$1,321.3m
13
12
11
10
09
140.8
144.3
116.7
133.0
100.5
13
12
11
10
09
1,321.3
1,237.5
1,167.0
1,124.6
1,202.6
ADJUSTED EBIT 2 (US$m)
ADJUSTED EBIT MARGIN 2 (%)
US$181m
13.7%
13
12
11
10
09
181.0
194.9
184.0
208.7
170.9
13
12
11
10
09
13.7
15.7
15.8
14.2
18.6
RETURN ON SHARE HOLDERS’
FUNDS 1,3 (%)
ADJUSTED DILUTED EARNIN GS
PER SHARE 1 (US cents)
10.4%
13
12
11
10
09
US 32 cents
10.4
11.2
10.0
13.3
11.6
13
12
11
10
09
32.0
32.9
26.7
30.5
23.1
DIVIDENDS PAID PER SHARE
(US cents)
US 43 cents
43.0
13
12
11
10
09
4.0
8.0
Please refer to the back cover for full footnote references.
2
Summary of Operations in FY13
J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
USA and Europe Fibre Cement
Asia Pacific Fibre Cement
NET SALE S (US$m)
RESULTS
RESULT S
Net sales increased 10% to US$951.4 million
Net sales decreased 2% to US$369.9 million
369. 9
Sales volume increased 12% to 1,488.5 million
square feet
Average net sales price decreased 1% to
US$639 per thousand square feet
Gross profit increased 7% and gross profit
margin decreased by 1.0 percentage point
Gross profit margin was unfavourably
impacted by lower average net sales price,
an increase in fixed manufacturing costs,
and an unfavourable shift in product mix,
partially offset by lower input costs (primarily
pulp and freight)
EBIT (excluding asset impairments) decreased
slightly from US$162.7 million in fiscal year
2012 to US$162.5 million, and EBIT margin
(excluding asset impairment changes) was
1.8 percentage points lower at 17.1%
Sales volume increased slightly from
392.3 million square feet in fiscal year 2012
to 393.7 million square feet
Average net sales price decreased by 1% to
A$911 per thousand square feet
Gross profit decreased 6%. Gross profit
margin decreased by 1.5 percentage
points, impacted by (among other factors)
higher fixed manufacturing costs and an
unfavourable shift in product mix
EBIT (excluding New Zealand product liability
expenses) decreased 13% to US$74.9 million
and EBIT margin (excluding New Zealand
product liability expenses) was 2.5 percentage
points lower at 20.3%
951.4
USA and Europe
Fibre Cement
Asia Pacific
Fibre Cement
EBIT 2 (US$m)
74.9
162.5
USA and Europe
Fibre Cement
Asia Pacific
Fibre Cement
2
3
Chairman’s Report
J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
With a steady recovery in the
US housing market now entering
its third year, and the gradual
improvement of market conditions
in the Asia Pacific market, our focus
in fiscal year 2013 was on investing
in our businesses to ensure they are
well positioned to take advantage
of future market opportunities.
OVER VIEw
With a steady recovery in the US housing
market now entering its third year, and the
gradual improvement of market conditions
in the Asia Pacific market, our focus in fiscal
year 2013 was on investing in our businesses
to ensure they are well positioned to take
advantage of future market opportunities.
Operating earnings for the group were
stable relative to fiscal year 2012. In the US,
we experienced improving demand for our
products and are maintaining our category
share and growing our market share against
other cladding products. Similarly in Australia,
despite the subdued operating environment,
we continue to enjoy strong category share,
with the Scyon® product range becoming
a larger part of that business.
CAPITAL MANAGEMENT
Our continued solid operating performance
and confidence in future market opportunities
enabled the Board to declare a first half
dividend of US5.0 cents and a second half
ordinary dividend of US13.0 cents, as well as
a special dividend of US24.0 cents per security
in May 2013. The resulting full year dividend of
US42.0 cents per security in respect of fiscal
year 2013 (totalling approximately US$185.5
million) was equal to the prior full year dividend.
The ordinary dividend announced in May 2013
represents an early increase in the company’s
dividend payout ratio, which was announced in
November 2012, from between 20% and 30%
to between 30% and 50% of net operating
profit (excluding asbestos adjustments)
beginning in fiscal year 2014 onwards. The
special dividend represents amounts that were
not utilised in the company’s share buyback
program which expired in May 2013.
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J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
The company also announced a new share
buyback program in May 2013 to acquire up
to 5% of its issued capital. To the extent the
company does not undertake share buybacks,
the Board may consider further distributions to
shareholders during fiscal year 2014, as part of
its capital management strategy.
BOARD RENEw AL
Donald McGauchie has advised the Board that
he will not be standing for a further term if he is
re-elected at the 2013 Annual General Meeting
(AGM). For more than ten years, Donald has
made a significant contribution to the success
of the company, particularly in his capacity as
Deputy Chairman during the past six years.
The Board and I have been very fortunate to
benefit from his considerable financial and
commercial expertise as well as his insight into
Australian matters. We are pleased that Donald
has agreed to serve a further term so that the
Board can consider an appropriate director to
take his place.
David Dilger has also advised the Board of
his intention to retire at the conclusion of his
current term, in August 2013. During the past
four years David has served as a member of
the Audit and Remuneration Committees as
well as a director on some of the company’s
Irish subsidiaries. The company has benefited
from his substantial executive and board level
experience and the Board and I thank him for
his valuable contribution.
several significant legacy issues facing James
Hardie, including establishment of the Amended
and Restated Final Funding Agreement covering
asbestos compensation arrangements in
Australia, the redomicile of James Hardie from
the Netherlands to Ireland and the resolution
of the 1999 Disputed Amended Assessment
with the Australian Taxation Office. Russell also
served on James Hardie’s Managing Board
between August 2005 and June 2010.
Russell’s contribution to James Hardie has been
immense. There is no doubt that the company
is in a significantly stronger position than it was
when he joined, both financially and through the
resolution of the company’s legacy issues.
ANNUAL GENERAL MEETING
This year’s AGM will be held on Monday,
12 August 2013, in Dublin, Ireland.
Shareholders can participate in person in
Dublin, online or via a teleconference. Details
are contained in the notice for the 2013 AGM.
CONCLUSION
Under the leadership of CEO, Louis Gries,
and the management team, the company
has delivered a stable operating result and
is strongly positioned to take advantage of
the anticipated upswing in our key product
segments and markets.
RETI REMENT OF RUSSELL CH ENU,
CH IEF FINANCIAL OFFICER
Michael Hammes
On 12 June we announced that Russell Chenu,
the company’s Chief Financial Officer (CFO) has
decided to retire from executive duties in 2013.
Russell joined James Hardie as Interim CFO
in October 2004 and was appointed CFO in
February 2005. During his tenure, Russell has
been intimately involved in the resolution of
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5
CEO’s Report
J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
Operating conditions in fiscal year 2013, particularly in the US,
improved when compared to the prior year. The US housing
recovery is now well underway and we have seen an increase
in volume and net sales as a result.
OVER VIEw
Operating conditions in fiscal
year 2013, particularly in the US,
improved when compared to the
prior year. The US housing recovery
is now well underway and we have
seen an increase in volume and net
sales as a result.
As is typical for the early stages of a housing
recovery in the US, multi-family and starter
homes have accounted for a greater proportion
of housing starts than single detached
dwellings, which have traditionally provided
the highest returns to the company.
For fiscal year 2013, net sales increased 7% to
US$1,321.3 million due to higher sales volume
in the USA and Europe segment, partially
offset by lower average net sales prices in both
the USA and Europe segment and the Asia
Pacific segment.
USA AND EUROPE FIBRE CEM ENT
For fiscal year 2013, net sales in the USA and
Europe Fibre Cement segment increased 10%
to US$951.4 million compared to the prior year,
due to higher sales volume, partially offset by
a lower average net sales price.
During fiscal year 2013, we funded a number
of initiatives in the US business to support
market and organisational development,
as well as planning for capacity expansion
based on our belief that the housing recovery
now underway is sustainable. This additional
expenditure reduced the impact of strong top
line performance on the overall profitability
of the group.
EBIT (excluding asset impairments) decreased
slightly from US$162.7 million in the prior
corresponding period to US$162.5 million.
The decrease in EBIT was primarily driven by
increased organisational costs in anticipation
of higher activity levels, a lower average net
sales price, an increase in fixed manufacturing
costs and an unfavourable shift in product mix,
partially offset by lower input costs (primarily
pulp and freight).
EBIT margin (excluding asset impairment
charges) was 1.8 percentage points lower
at 17.1%.
ASIA P ACIFIC FIBRE CEMENT
When compared to the prior fiscal year, the
Asia Pacific Fibre Cement segment contributed
lower operating earnings, reflecting a relatively
subdued and increasingly competitive operating
environment in Australia and the Philippines.
The New Zealand business delivered improved
results when compared to the prior year.
Net sales in the Asia Pacific business
decreased 2% to US$369.9 million and EBIT
(excluding New Zealand product liability
expenses) decreased 13% to US$74.9 million.
The decrease in EBIT was due to higher fixed
manufacturing costs and an unfavourable shift
in product mix, plant performance and foreign
currency exchange rates.
The EBIT margin, on the same basis, was
2.5 percentage points lower at 20.3%.
On 16 April, 2013, the New Zealand Ministry
of Education (MoE) initiated a ‘representative
action’ in the New Zealand High Court against
several building materials manufacturers,
including two of the company’s New Zealand
subsidiaries in relation to weathertightness
issues in several thousand New Zealand school
buildings. Weathertightness has been an issue
in New Zealand for longer than a decade and
relates to moisture penetration of a building’s
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J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
exterior due primarily to poor design and
construction practices.
construction market in fiscal year 2013 are
expected to continue.
The company is not yet able to determine
the amount or range of loss, if any, that the
company’s New Zealand subsidiaries may
become liable for in future periods.
The Philippines operating environment is likely
to remain robust and the business is expected
to contribute improved operating earnings
during fiscal year 2014.
CONCLUSION
We are confident that the improvements we are
seeing in the US housing market are sustainable
and we are investing in our marketing,
manufacturing capacity and organisational
capability to meet anticipated growing demand.
In Asia Pacific, while the core fundamentals
for the housing market look positive, it would
appear that we are in for another challenging
year, with operating conditions expected to
remain relatively subdued, at least for the
remainder of calendar year 2013.
Louis Gries
We stand by our products and remain confident
that our products and the technical information
and support we provide to our customers are
industry leading and of the highest quality.
The company’s New Zealand subsidiaries
intend to vigorously defend the MoE claim.
OU TLOOk
The US operating environment continues to
reflect an increasing number of housing starts,
improving house values and ongoing but low
growth in the repair and remodel market.
In anticipation of further improving
markets and gains in market share, we are
investing in capacity expansion in both the
US and Australia.
This includes refurbishing and bringing our
Fontana, California plant back online in early
2014, and our recently announced plans
to acquire the land upon which our Carole
Park, Brisbane manufacturing facility is
located (together with the buildings) and the
construction of new manufacturing capacity
on that site.
The decision to invest in additional Australian
fibre cement manufacturing capacity is in
response to a long term trend in the Australian
residential and commercial construction
industries towards greater use of composite
building materials, of which James Hardie is
a major beneficiary.
For fiscal year 2014, we believe the operating
environment in Australia is likely to remain
relatively subdued. In New Zealand the strong
upward trends that were experienced in the
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Sustainability Report
J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
As a product leader in the building and construction industry,
James Hardie recognises its obligation to promote energy
efficient design and sustainable communities.
James Hardie’s approach to sustainability
extends beyond manufacturing practices.
We focus on designing innovative products
that have an extended lifespan, require little
maintenance and can be used in energy
efficient buildings.
SUSTAINABLE HOUSING
We support housing projects that deliver
exceptional energy star ratings and regularly
work with local builders to design and develop
sustainable housing projects.
The durability and longevity of our products
sets us apart from alternative materials allowing
James Hardie products to be specified on
sustainable building projects throughout the
United States and Australia and other markets
we service.
SUSTAINABLE PRODUCTS
James Hardie fibre cement is resistant to
damage from fire, moisture, mould and pests.
Today we are producing our 7th generation fibre
cement product – the most advanced fibre
cement available.
In the United States, we have developed
products that are engineered for specific
climates, referred to as the HardieZone®
system. This system categorises the United
States into specific zones based on climate,
allowing us to provide tailored product solutions
to our customers according to where they live.
SUSTAINABL E RA w MATERIAL S
We use natural and sustainable raw materials
such as cement, sand, wood fibre and water.
We are committed to delivering quality products
people have come to expect while minimising
the impacts the use of these materials has on
the environment.
SUSTAINABL E MANUFACTURING
In 2013, our Peru (Illinois), Reno (Nevada) and
Pulaski (Virginia) factories were certified under
ISO 14001, a voluntary certification issued
by a third party certified auditor, attesting
that we have established environmental
management best practices as laid out in the
ISO 14001 requirements framework. These
best practices include a standardised approach
to environmental training, internal auditing,
record keeping and documentation, as well as
continuous improvement processes from
a resource conservation and energy reduction
perspective.
SUSTAINABILITy PROGRAM S
James Hardie’s manufacturing operations
maintain several sustainability programs with
a focus on:
Waste minimisation/recycling: We
continually test new waste minimisation and
solid waste recycle technologies as part of our
Zero to Landfill program. On an annual basis,
we convert approximately 11,000 tonnes of
reject fibre cement sheet into cement and an
additional 8,000 tonnes of fibre cement by-
products (dust/fines) into road base
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J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
Raw Materials: We source about 90% of our
raw materials from local or regional suppliers
Reduced fuel usage: Our nationwide network
of factories reduces overall shipping distance
and fuel consumption
Balancing VOC emissions: In the US, installers
using James Hardie products with ColorPlus®
Technology have less exposure to paint fumes
Water recycling: We are developing
technologies that enable us to recycle a
larger percentage of our water used in the
manufacturing process
Our Australian plants are registered under
the National Energy Efficient Opportunities
Program. At all production sites energy usage
is compared with production output to monitor
and ultimately improve energy usage efficiency.
SUSTAINABLE DESIGN
James Hardie’s investment in research
and development, manufacturing know-
how and product design has enabled us to
bring to market a range of products that are
valued for durability, low maintenance and
energy efficiency.
In New Zealand, following the success
of a similar Australian initiative, we recently
launched The Smarter Small Home™ concept.
The construction techniques and innovative
architectural design mean the house can be
situated on less than 350 square metres,
making maximum use of available land, while
also being ideal for further development of
existing properties and multi-family, medium
density developments.
In the United States, James Hardie products
are also NAHB Green Approved and have
contributed LEED points to green building
projects across the country.
SUSTAINABL E COMMUNIT IES
James Hardie believes in giving back to our
communities in all of our locations, including
in and around the areas where we have a
manufacturing presence.
We support and participate in community
welfare programs such as Extreme Makeover:
Home Edition, Habitat for Humanity and
Rebuilding Together/Heros at Home by
donating products and volunteering.
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The Smarter Small HomeTM
James Hardie New Zealand
Workplace Safety
J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
James Hardie is committed to sustaining a
safe working environment and has committed
to the following objectives:
Achieve within our plants an incident rate
of less than 2 (an “incident rate” is the
number of recordable incidents that occur
per 200,000 hours worked) and a severity
rate of less than 20 (the “severity rate” is the
number of days lost or requiring restricted
duty from recordable incidents per 200,000
hours worked)
Eliminate serious bodily harm
Achieve zero fatalities
It should be noted that James Hardie’s
severity rate relates to factory employees
and does not include our sales force,
corporate or administrative employees.
Enhancing supervisor development and
leadership presence on the floor
Driving improved accountability through
pro-active coaching and positive recognition
ASIA P ACIFIC FIBRE CEMENT SAFETy
PERFORMANCE IN FISCAL yEAR 201 3
For the third consecutive year, the Asia Pacific Fibre
Cement business recorded incident and severity
rates below its safety goals of “2 and 20” with an
incident rate of 0.5 and a severity rate of 4.5.
Recognising that the safety of employees
is critical, James Hardie has made safety
one of the scorecard measures for the Board
to use to determine payments to senior
executives under the company’s Long Term
Incentive Plan.
These results are a great achievement for
the region and are due to the ongoing efforts
of every person in our business and their
commitment to ensuring we continue to
provide a safe environment for our employees,
contractors and visitors.
USA AND EUROPE FIBRE CEMENT SAF ETy
PERFORMA NCE IN FISCAL yEAR 2 013
The USA and Europe Fibre Cement business
recorded 31 incidents in fiscal year 2013. The
incident rate was 2.1 and the severity rate
was 41.0.
From a safety perspective, the company’s focus
in fiscal year 2013 was on:
In 2013, we continued with our “on the spot”
risk assessment program which further
embedded our hazard identification and control
processes as part of our day to day operations.
Looking forward to fiscal year 2014, our
focus will be to build upon our current safety
momentum and lock in improvements in our
safety performance by:
Improving consistency in reporting across
and within plants
Standardising safety metric effectiveness
between plants
Further strengthening our safety culture
among employees
Enhanced site specific safety training
and professional development for safety
personnel
Looking forward to fiscal year 2014, we will be:
Consolidating previous efforts and initiatives
to cement safety as a core value at the
factory floor level among employees by
fostering a “brother’s keeper” approach
to managing safety – building a culture
of interdependency by increasing
accountability for co-workers
Ensuring effective safety leadership,
communication and consultation by
developing our leaders so that they
can drive safety performance through
their teams
Ensuring a structured approach is taken
for the identification of hazards in our
operations so that they can be assessed
and eliminated or controlled
Auditing our performance to ensure
continuous improvement in safety risk
management and to identify any areas
for improvement
By continuing to promote a culture of safety
and enhance our systems that identify, assess,
eliminate and control hazards, the company
has been able to sustain the gains achieved in
workplace safety.
1 0
1 1
Asbestos Funding
J A M E S H A R D I E A N N U A L R E V I E W 2 0 1 3
As of 31 March 2013, the Asbestos Injuries Compensation Fund
(AICF) had net cash and investments of A$128.1 million
In 2013, James Hardie contributed A$177.5
million to the AICF.
Since the AICF was established in February
2007 through to March 2013, James Hardie has
contributed A$599.2 million to the fund.
James Hardie has also been contributing
A$500,000 each year since 2007, towards medical
research into the prevention, treatment and cure
of asbestos diseases. Since 2012, we have
directed the entirety of our contributions to the
Asbestos Diseases Research Foundation (ADRF),
which conducts research at the Concord Hospital
campus located in Sydney, Australia.
In 2013, James Hardie contributed an additional
A$75,000 to the ADRF, for clinical trials to
develop a new treatment for mesothelioma.
The company has also been contributing
A$75,000 a year since 2007, for an education
program to inform home renovators of the risks
associated with asbestos.
ANNUAL ACTUA RIAL ASSESSM ENT
KPMG Actuarial conducts an annual
actuarial assessment of the liabilities of the AICF
to enable projections to be regularly updated in
line with actual claims experience and the claims
outlook. Subject to the Annual Cash Flow Cap,
James Hardie makes contributions to the AICF
based on these annual actuarial assessments.
James Hardie discloses summary information
on claims numbers each quarter with
its quarterly results releases. Additional
information contained in the annual actuarial
report is available in the Investor Relations
area of the James Hardie website
(www.jameshardie.com.au).
UPDATED ACTUARIAL ASSESS MEN T
James Hardie received an updated actuarial
report from KPMG Actuarial at 31 March 2013,
which showed the discounted central estimate
of the asbestos liability increasing from A$1.580
billion at 31 March 2012, to A$1.694 billion at
31 March 2013.
The increase in the discounted central estimate
of A$114 million is primarily due to lower
discount rates, and an increase in the projected
future number of claims to be reported for
a number of disease types (specifically
mesothelioma), partially offset by a decrease
in the average claim settlement amount, and a
decrease in the expected rate of claim inflation
in the near-term.
ASBE STOS FU NDING LIABI LI TY
ASBE STOS FUNDING LIABIL ITy
N
O
I
L
L
I
M
$
A
7000
6000
5000
4000
3000
2000
1000
0
JUN 04 MAR 05 JUN 05 MAR 06 SEP 06 MAR 07 MAR 08 MAR 09 MAR 10 MAR 11 MAR 12 MAR 13
Sensitivity range (net, undiscounted)
Undiscounted central estimate (net)
Discounted central estimate (net)
Asbestos Liability Valuations: KPMG Acturial
1 0
1 1
Wherever we operate, our goal is to be at the forefront of
the building materials industry, capitalising on our global
leadership in product innovation, market development
and manufacturing efficiency.
It is James Hardie’s commitment to quality and industry
leading products that differentiates us from other building
materials companies.
®
Corporate Headquarters
Second Floor, Europa House
Harcourt Centre
Harcourt Street, Dublin 2, Ireland
+353 1 411 6924
Telephone
+353 1 479 1128
Facsimile
Key Dates
31 MARCH
End of James Hardie Industries plc Fiscal Year 2013
23 MA y
FY13 Quarter 4 and Full Year results and
management presentation
28 JU NE
Annual Review released
8 AU GUST
Voting Instruction Forms close 7.00pm Sydney time
for Annual General Meeting
12 AUGUST
FY14 Quarter 1 results announcement and
management presentation
12 AUGUST
Annual General Meeting, Dublin
14 NO VE MBER
FY14 Quarter 2 and Half Year results and
management presentation
ANNU AL G ENERA L MEET I NG
The 2013 Annual General Meeting of CUFS
holders of James Hardie Industries plc will be
held in Dublin, Ireland, at 7:30am Dublin time, on
Monday, 12 August 2013. The AGM will also be
simultaneously broadcast via a teleconference and
webcast at 4:30pm AEST. Further details are set out
in the Notice of Annual General Meeting 2013.
SHARE/C UF S REGIS TR y
James Hardie Industries plc’s registry is managed by
Computershare. All enquiries and correspondence
regarding holdings should be directed to:
Computershare Investor Services Pty Ltd
Level 4, 60 Carrington Street
Sydney NSW 2000
or GPO Box 2975
Melbourne VIC 3001
Telephone within Australia: 1300 855 080
Telephone outside Australia: +61 (03) 9415 4000
Email: web.queries@computershare.com.au
Website: www.computershare.com
James Hardie Industries plc
(ARBN 097 829 895)
Incorporated in Ireland with its registered office
at Second Floor, Europa House, Harcourt Centre,
Harcourt Street, Dublin 2, Ireland and registered
number 485719. The liability of its members is limited.
™ or ® denotes a trademark or Registered mark
owned by James Hardie Technology Ltd.
© 2013. James Hardie Industries plc.
For more information about
James Hardie, pl ease vis it o ur we b si te :
www.jameshardie.com.au
Disclaimer: Certain statements in this Annual Review may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. James Hardie uses such words as
“believe,” “anticipate,” “plan,” “expect,” “intend,” “target,”, “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook,” or similar
expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are not guarantees of future results.
Rather, these forward-looking statements are based on James Hardie’s current assumptions, expectations and projections about future events, and involve known and unknown risks, uncertainties and
other factors which are discussed in further detail in our annual report on Form 20-F (“Annual Report”), which will be filed with the United States Securities and Exchange Commission and the Australian
Securities Exchange. These forward-looking statements are made as of the date of this Annual Review and James Hardie does not assume any obligation to update them. Investors are encouraged to
review James Hardie’s Annual Report, and specifically the risk factors discussed therein, as it contains important disclosures regarding the risks attendant to investing in our securities.
1 Unless otherwise stated for fiscal years 2013 and 2012, Adjusted Net Operating Profit graphs and editorial comments throughout this report refer to results from operations excluding asbestos,
asset impairments, ASIC expenses, New Zealand product liability expenses and tax adjustments. The same can be said for 2009, 2010 and 2011 except they do not exclude New Zealand product
liability expenses.
2 Unless otherwise stated for fiscal years 2013 and 2012, Adjusted EBIT graphs and editorial comments throughout this report refer to EBIT excluding asbestos, asset impairments, ASIC expenses and
New Zealand product liability expenses. The same can be said for 2009, 2010 and 2011 except they do not exclude New Zealand product liability expenses.
3 Includes restricted cash set aside for AFFA.