James Hardie Industries

®

DRIVING
GROWTH
2 0 17 A N N U A L R E VIE W

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I

 
 
 
 
 
 
 
 
RESULTS AT A GLANCE

ADJUSTED NET 
OPERATING  
PROFIT (1) (US$Million)

NET SALES 
(US$Million) 

ADJUSTED EBIT (2) 
(US$Million) 

ADJUSTED DILUTED 
EARNINGS PER SHARE (1) 
(US cents)

$249M

$1,922M

$354M

56cents

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TOTAL 
SHAREHOLDER 
RETURN (%)

18%

US EBIT  
MARGIN (2)  
(%)

23%

DIVIDENDS PAID 
PER SHARE  
(US cents)

ADJUSTED RETURN 
ON CAPITAL 
EMPLOYED (2) (%)

39cents

31%

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Please refer to the inside back cover for full footnote references.

James Hardie  
is a growth Company.

We are aggressively driving 
demand for and market growth 
of fibre cement products across 
all our businesses and geographies 
in which we operate, while 
actively pursuing future growth 
opportunities, to deliver profitable 
returns and create long-term 
shareholder value.

JAMES HARDIE /   DRIVING GROWTH

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1

 
 
 
 
 
 
 
 
OPERATIONS OVERVIEW

In fiscal year 2017 we continued to create value for 
our investors, customers, employees and the 
communities where we do business. We were able 
to sustain our success in this area through our 
significant investment in our people, plants 
and market development programs, 
which have allowed James Hardie to 
maintain its position as a leader in 
the building materials industry. 

KEY

   North America
  International
   Research & Development
   Manufacturing Facilities

NORTH AMERICA FIBRE CEMENT

NET SALES

SALES VOLUME

AVERAGE NET SALES PRICE

US$1,493M

2,215mmsf

US$665 per msf

u 12% from 2016

u 13% from 2016

t 1% from 2016

GROSS PROFIT

EBIT (2)

EMPLOYEES

u 3% from 2016

GROSS MARGIN

t 3.1PP from 2016

2

US$344M

t 2% from 2016

2,390

u 14% from 2016

NET SALES  
(US$Million)

EBIT (2) 
(US$Million)

EMPLOYEES 
(#)

CAPEX SPEND 
(US$Million)

3,333

$101.2M

$1,905

$439

$1,493M
$412M

$344M
$95M

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   North America

  International

   Research & Development

   Manufacturing Facilities

INTERNATIONAL FIBRE CEMENT

NET SALES

SALES VOLUME (3)

AVERAGE NET SALES PRICE

US$412M

u 9% from 2016

487mmsf

u 3% from 2016

US$775 per msf

u 6% from 2016

GROSS PROFIT

EBIT (2)

EMPLOYEES

u 21% from 2016

GROSS MARGIN

u 3.9PP from 2016

US$95M

u 21% from 2016

943

u 6% from 2016

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3

 
 
 
 
 
 
 
 
CHAIRMAN’S 
REPORT

It has been another significant year for 
James Hardie. We have made solid progress 
on driving our proven growth strategy, 
substantially invested in our people, plants 
and market development programs and 
continued to deliver sound financial results.

NET SALES 
(US$Million)

US$1,922M

u 11% from 2016

NET CASH FROM OPERATING 
ACTIVITIES (US$Million)

$292M

u 12% from 2016

ADJUSTED NET OPERATING  
PROFIT (1) (US$Million)

$249M

u 2% from 2016

TOTAL SHAREHOLDER  
RETURN (%)

18%

t 4pp from 2016

4

The company achieved 10% volume growth and 11% revenue 
growth, which was ahead of expectations and was primarily 
driven by our North American business. Our Australian business 
also contributed to this strong top line result. Our North 
America segment EBIT margin at 23% was within our target 
range of 20 to 25%, but below our internal expectations. The 
International segment EBIT margin improved by 2.6 percentage 
points and was very strong at 23%. Even with some of our 
financial results below our internal expectations, our total 
shareholder returns of 18% and return on capital employed 
of 31%, remain at the top of our peer group. 

We are continuing to invest in building capability for long‑term 
organic growth. During fiscal year 2017 we invested heavily 
in our manufacturing network, including the start‑up of four 
new lines across North America, the announcement of 
a greenfield expansion project next to our existing Tacoma 
(Washington) plant and the continued addition of capacity 
in the Philippines. Additionally we made significant investment 
in our people and market development programs globally, 
to better position us for future growth.

We are continuing to expand the breadth and depth of our 
managerial talent and have recruited externally to fill positions 
on our executive management team. Our goal is to add to the 
already strong management capability in place and enhance 
the breadth and depth of the executive team. As an example, 
Jack Truong recently joined as our President, International 
Operations in early April 2018 bringing with him more than 
three decades of experience and a unique set of skills to drive 
both market demand for fibre cement and our market share 
in all our businesses and geographies, while being open to 
future growth opportunities. Additionally, we are committed 
to strengthening the management team beyond the executive 
team through a combination of recruiting to add capability and 
an increased focus on development and retention of our high 
potential employees to ensure our management depth and 
capability are in place to drive our growth strategy.

CAPITAL ALLOCATION AND SHAREHOLDER RETURNS

We remain committed to investing in organic growth; 
maintaining our ordinary dividend; and having the capacity 
for strategic opportunities or additional shareholder returns 
while maintaining a strong balance sheet.

Our underlying confidence in the strength of our businesses 
and the environments in which they operate enabled the 
Board to declare a first half dividend of US10.0 cents and 
a second half ordinary dividend of US28.0 cents. 

The resulting full year ordinary dividend declared of 
US$170.0 million, reflecting a payment of US38.0 cents 
per security, was in‑line with the full year ordinary dividend 
declared and paid for fiscal year 2016 of US$169.9 million, 
reflecting a payment of US38.0 cents per security. 

The ordinary dividend reflects our commitment to provide 
shareholder returns within the ordinary dividend payout 
ratio of 50 to 70% of net operating profit, excluding 
asbestos adjustments. 

Additionally, during the second quarter of fiscal year 2017 
we returned an additional $100 million to shareholders 
in the form of repurchased and cancelled 6,090,133 
shares of our common stock. The aggregate cost of the 
shares repurchased and cancelled was A$131.4 million 
(US$99.8 million), at an average market price of A$21.58 
(US$16.40).

Overall, the company maintains a strong balance sheet 
strategy and operated within our stated leverage target 
of 1‑2 times adjusted EBITDA. Our financial management 
remains consistent with an investment grade rated company.

ASBESTOS INJURIES COMPENSATION 
FUND (AICF) 
Due to our strong financial performance during fiscal year 
2017, we will contribute approximately US$102.2 million 
to the AICF in July 2017. This amount represents 35% of our 
free cash flow for fiscal year 2017 which we are obliged to 
contribute as part of our commitment under the Amended 
and Restated Final Funding Agreement. 

Including this contribution, we have provided over A$1.3 billion 
towards asbestos disease related compensation and medical 
research and education since 2001. 

ANNUAL GENERAL MEETING
This year’s AGM will be held on Tuesday, 8 August 2017, 
in Dublin, Ireland.

Shareholders can participate via a teleconference. Details 
regarding the matters to be acted upon at the 2017 AGM will 
be contained in the Notice of Meeting and related materials.

Michael Hammes 
Chairman

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5

 
 
 
 
 
 
 
 
 
CEO’S 
REPORT

James Hardie is 
a growth company. 
Our fiscal year 2017 
results reflect this with 
the company delivering 
strong revenue growth 
and cash generation. 
Revenue increased 
by 11%, allowing us 
to achieve our highest 
ever revenue result 
of $1.9 billion, net 
cash provided from 
operating activities 
increased by 12% and 
total shareholder return 
was strong at 18%. 

In North America, we increased volumes and revenue driven by underlying market 
growth and continued improvement in our commercial execution resulting in improved 
market penetration. Our North American segment EBIT margin was 23% and within our 
target range of 20 to 25%, but below our internal expectations. During fiscal year 2017 
we significantly increased our manufacturing capacity in North America with the addition 
of 4 new lines and 750 million feet of brownfield capacity that will continue to drive a high 
return on capital for the company. However, the capacity growth also created challenges 
for our North America manufacturing network as we accelerated commissioning of new 
capacity and overall performance of the network lagged fiscal year 2016 performance. 
During fiscal year 2017 we commissioned lines at our Cleburne (Texas) and Plant City 
(Florida) facilities, continued to start up both sheet machines at our Fontana (California) 
facility, and began work to restart our Summerville (South Carolina) facility which 
is on track to be commissioned in early fiscal year 2018. 

In Australia, increased volumes and favourable product mix drove higher net sales. 
Favourable conditions in the domestic repair and remodel and single detached housing 
markets in the eastern states of Australia contributed to this solid result. Similarly, the 
New Zealand business delivered improved results supported by growth in residential 
markets in the North Island. Volumes in the Philippines business were lower due to 
the entrance of competitive imports during the fiscal year and the European business 
contributed both higher volumes and margins.

OUTLOOK
We expect the modest market growth and more prolonged recovery of the US housing 
market to continue into fiscal year 2018. The single family new construction market and 
repair and remodel market are expected to grow similar to the year‑on‑year growth 
experienced in fiscal year 2017. We expect our North America segment sales volume 
growth to outpace overall market growth and our EBIT margin to be in our stated target 
range of 20% to 25%. Finally, we expect to deliver improved operating performance in our 
manufacturing network.

Net sales from the Australian business are expected to trend in‑line with the average growth 
of the domestic repair and remodel and single detached housing markets in the eastern 
states of Australia. Similarly, the New Zealand business is expected to deliver improved 
results supported by growth in residential markets in the North Island. Our Philippines 
business was adversely impacted by the entrance of imports from a competitor during 
fiscal year 2017; while the change in the overall competitive landscape is expected to 
persist the impact on volumes has steadied in recent periods and we expect net volume 
growth in fiscal year 2018.

6

2017

STRATEGIC PILLARS 
PROGRESS

Driving profitable growth and delivering superior returns is what we expect, and what you expect. 
Our ability to deliver growth and returns is underpinned by four strategic pillars. The four pillars 
provide a strategic framework to invest in people, market position, our industry leading brand, 
and new strategic opportunities, driving growth for the next decade. 

PEOPLE

MARKET POSITION

We are improving our organisational capability by:

 § Ensuring a safe work environment
 § Developing and promoting our people, including 

building a pipeline of talent for critical roles

 § Attracting top external talent
 § Embracing a culture of engagement with 

our employees

 § Delivering a better employee retention outcome

BRAND PROMISE

We are delivering differentiated products and 
services by:

 § An unrivalled commitment to research 

and development

 § Maintaining our manufacturing cost advantage
 § Delivering industry leading quality and 

 §

 §

service levels
Investing globally in future manufacturing 
capability and capacity
Leveraging technology to better improve the 
customer experience

SUMMARY

James Hardie is a growth company, 
and we are continuing to put additional 
capability in place. As we deliver on the 
strategic objectives of the four pillars we 
are confident in driving growth for the next 
decade while delivering superior returns. 

We are aiming to grow our market share in all our 
businesses and geographies by:

 § Growing fibre cement as a valuable substitute 
for wood and vinyl siding and trim in the 
new construction, repair and remodel and 
multifamily segments

 § Maintaining our fibre cement category position 
by delivering differentiated value from across 
all points of the supply chain through to the 
home owner

 § Driving an increase in our share of the rigid 
backer board market, while extending our 
presence in the underlayment market to non‑fibre 
cement categories and adjacent accessories
 § Developing an international growth strategy 
beyond our current business, including new 
geographies and new products and segments

 § Utilising a segmented approach to brand 

positioning and strategic pricing

NON-FIBRE CEMENT

We will continue to explore opportunities for growth 
beyond our existing fibre cement business by:

 §

 §

Investing in fibreglass protrusion technology and 
our existing fibreglass window frame business
Identifying other non‑fibre cement businesses 
within the building materials sector

 § Prioritising early stage technology where our 
existing core competencies around product 
innovation, process improvement and market 
development can add value

 § Giving consideration to fibre cement opportunities 

beyond existing geographies

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7

 
 
 
 
 
 
 
 
ENVIRONMENTAL, 
SOCIAL AND 
GOVERNANCE REVIEW

As a leader in the building 
materials industry, James 
Hardie is committed to creating 
long-term sustainable value 
for everyone connected to our 
organisation. Our commitment 
to sustainability includes not only 
our efforts to promote efficient 
manufacturing processes, but 
also our commitment to become 
a world-class safety organisation 
and positively impact the 
communities in which we operate. 
At James Hardie, we embrace 
our corporate commitment to 
sustainability and seek to build 
on our significant progress toward 
these important goals.

8

SUSTAINABLE MANUFACTURING 
We understand that efficient and sustainable 
manufacturing processes are critical to our success. 
Many of our customers require that their product suppliers 
retain an ISO 14001 certification, a voluntary accreditation 
process in which the International Organization for 
Standardization certifies that a party has met certain 
substantive qualifications that signify excellence 
in environmental management. Three of our largest 
facilities continue to maintain this globally recognised 
external certification and all of our manufacturing 
locations implement ISO 14001 best practices 
in compliance with our global environmental policy, 
a copy of which is available on our Investor Relations 
website (www.ir.jameshardie.com.au). Programs focusing 
on manufacturing sustainability include:

 § Resource Conservation and Waste Minimisation 

– Initiatives within our US and Asia Pacific 
operations include enhanced water reuse and raw 
material recycling efforts, as well as retrofitting the 
lighting in our manufacturing facilities with new, 
highly energy efficient LED lights and the piloting 
of solar panels at our Carole Park facility.

 § Raw Materials – We continue to source the majority 

of the raw materials used in our manufacturing 
process from local or regional suppliers in close 
proximity to our manufacturing facilities, reducing 
the distance travelled in the procurement of such 
materials. This consideration is also incorporated 
into our long‑term planning when identifying future 
manufacturing locations.

 § Transportation Footprint – Our manufacturing 
facilities are strategically located in those areas 
of the world nearest to our key markets, minimising 
the overall shipping distances of our products. 
 § Emissions Reductions – We have implemented 

effective environmental control systems at 
each facility worldwide, reducing our overall 
emissions profile.

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9

 
 
 
 
 
 
 
 
ENVIRONMENTAL, SOCIAL AND 
GOVERNANCE REVIEW CONTINUED

WORKPLACE SAFETY

We are committed to providing a safe working environment 
for all of our employees and have sustained incident rates 
well below industry average for the past decade. For fiscal 
year 2017, our global incident and Days Away, Restricted 
or Transferred (DART) rates were 1.4 and 0.7, respectively, 
compared to 3.8 and 1.0, for all manufacturing industries. 

During fiscal year 2017, our focus shifted from lagging 
to leading indicators in our pursuit of a Zero‑Harm 
Culture, recognising that any one incident that results 
in physical harm to an employee is one too many. In 2016, 
as part of this advanced approach, we established 
a Safety Culture Steering Committee in the United States 
comprised of hourly and salaried leaders representing each 
manufacturing location. The Committee’s primary objective 
has been to take the next step in our development 
toward becoming a company that is identified as having 
a best‑in‑class safety culture. Taking a long‑term approach, 
the Committee has started by identifying both current 
factors that forestall the company’s progression toward 
zero‑harm, as well as best practices capable of driving 
improvement of safety performance within our organisation.

The Committee collaborated with North American, 
European and Asia Pacific operational teams to develop 
a new global safety vision for James Hardie:

To become a World-Class Safety Organisation focused 
on Safe People, Safe Plants, and Safe Systems to drive 
a Zero-Harm Culture.

The Safety Culture Steering Committee developed and 
our executive leadership adopted a multi‑year plan on 
how to achieve our goal of achieving a Zero‑Harm Culture. 
As such, the emphasis has been placed on:

 § Engaging, empowering and training Safe People 

through visible leadership support and a commitment 
to safety that is evident 24/7/365. 

 § Cleaning and organising Safe Plants through 

a structured housekeeping approach and provide 
improvements that promote sustainable housekeeping 
processes at each facility.

 § Developing Safe Systems that provide real‑time 
data and tools for continuous risk reduction.

SOCIAL RESPONSIBILITY

ENVIRONMENTAL MANAGEMENT PRINCIPLES 

We maintain a comprehensive environmental management 
system that is consistent with our stated environmental 
policy and designed to help reduce our global 
environmental impact. Whenever possible, we seek to use 
renewable and recyclable resources, practice appropriate 
conservation techniques and take steps to protect the 
environment against pollution. For example, water usage 
forms a critical part of the fibre cement manufacturing 
process and is reused at least four times before being 
treated and released. During fiscal year 2017, we have 
undertaken efforts to enhance water reuse by partnering 
with local business that can further reuse waste water 
produced during our manufacturing process. 

In addition we continue to successfully reintroduce raw 
material components back into our process and have 
developed resource applications for our by‑products 
for use in the manufacture of cement and road based 
products. Our goal is to continuously improve the effective 
use of natural resources and energy efficiency of our 
operations by setting objectives, targets, and programs 
for improvement.

We are also committed to reporting and tracking our 
carbon footprint through voluntary participation in the 
globally recognised Carbon Disclosure Project (CDP). 
We will make our initial submission in June 2017. 
Participation in the CDP will allow us to track our progress 
on key environmental indicators such as manufacturing 
and transportation related carbon reduction efforts and 
energy efficiency. Other initiatives in the coming fiscal year 
include a transition to the new ISO14001‑2015 certification 
standard and the selection and implementation of a new 
Environmental Health and Safety (EHS) Management 
System platform which will enhance our ability to track 
key EHS metrics on a real‑time basis.

“Operate with Respect” is a core value at James Hardie 
globally and reflected in our approach to Social Responsibility. 
Through our Charitable Program, we seek to have a positive 
social impact in the communities where we operate and 
in our markets by actively participating in charitable and 
humanitarian activities and projects. Every employee and 
each of our facilities is encouraged to support local charitable 
efforts that align with the company’s dual vision of meeting 
the basic needs of at‑risk individuals and families, by helping 
them gain stability and become self‑sufficient and enhancing 
a community’s vitality through the support of organisations 
that serve our communities or create and foster economic 
and environmental vitality. Our commitment can be in the 
form of matching financial gifts made and time volunteered 
by our employees, as well as through the donation of James 
Hardie products. 

In fiscal year 2017, the company and its employees 
contributed nearly $3,000,000 in monetary and product 
donations to 67 organisations in the United States including: 

 § Habitat For Humanity, a global non‑profit housing 
organisation working in nearly 1,400 communities 
across the United States and in approximately 
70 countries around the world. 

 § Cope Environmental Center, an organisation located 

in Centerville, Indiana that educates thousands of kids 
a year through its school and nature programs, received 
donated product that was installed on the organisation’s 
new Kid’s Nature Center where children of all ages can 
learn about different aspects of environmental science.

 § Calgary Homeless Foundation, an organisation located 
in Calgary, Alberta in Canada that works with the local 
community to provide the resources and infrastructure 
necessary to meet the needs of the homeless community, 
received donated product that was installed on area homes 
that re‑house members of the local homeless community.

 § Happy Hallow Children’s Camp, an organisation located 
in Central Indiana that provides disadvantaged children 
the opportunity to spend time away from the city in 
a natural setting to develop self‑sufficiency skills, received 
donated product for their 60‑year old main cabin. 
 § Queretaro Institute for Children, an organisation 

located in Laredo, Texas that provides early education 
programs for local low‑income pre‑school children 
between the ages three and six, received donated 
product for a new pre‑school.

 § World Vision, we continued to support the organisation 
with product donations needed to restore the homes 
of individuals in communities impacted by the floods 
in the Pacific Northwest and Virginia.
Lower Nine Organisation a community group that 
represents New Orleans’ Ninth Ward, which is still 
recovering from the devastation caused by Hurricane 
Katrina, continues to receive donated product from 
James Hardie for home restorations. 

 §

In addition, we continue to participate in projects 
supporting our disabled and homeless veterans.

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11

 
 
 
 
 
 
 
 
ASBESTOS FUNDING

During July 2017, James Hardie 
will contribute approximately 
US$102.2 million to the Asbestos 
Injuries Compensation Fund (AICF).

This amount represents 35% of James Hardie’s free cash flow 
for fiscal year 2017, which the company is obliged to contribute 
as part of its commitment under the Amended and Restated 
Final Funding Agreement (AFFA). 

Including its July 2017 contribution, James Hardie has provided 
over A$1.3 billion towards asbestos compensation and medical 
research and education since 2001. 

James Hardie continues to contribute to medical research 
through the Asbestos Diseases Research Foundation (ADRF) 
which was established in 2006 as a charitable, not‑for‑profit 
organisation dedicated to assist and support the research 
efforts into asbestos and other dust‑related diseases. 
The Foundation established and operates the Asbestos 
Diseases Research Institute (ADRI) a dedicated research 
institute. More information regarding the ADRI can be obtained 
on their website (www.adri.org.au).

Additionally James Hardie is the primary supporter (and only 
commercial supporter) of Australia’s largest educational 
campaign regarding the dangers of asbestos. The educational 
campaign is aimed at educating home renovators about the 
risk of asbestos in the built environment. An example of the 
Asbestos Education Committee’s work can be found on their 
website (www.asbestosawareness.com.au). 

ANNUAL ACTUARIAL ASSESSMENT
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. 

James Hardie received an updated actuarial report from 
KPMG Actuarial at 31 March 2017, which showed the 
undiscounted and uninflated central estimate net of insurance 
recoveries decreased from A$1.434 billion at 31 March 2016 
to A$1.386 billion at 31 March 2017.

James Hardie discloses summary information on claims 
numbers as part of its quarterly results releases. For additional 
information, please see the full 2017 actuarial report of KPMG 
Actuarial, which is available on our Investor Relations website 
(www.ir.jameshardie.com.au).

12

CORPORATE HEADQUARTERS
Europa House, Second Floor 
Harcourt Centre 
Harcourt Street, Dublin 2, Ireland 
Telephone +353 1 411 6924 
Facsimile +353 1 479 1128

KEY DATES
31 March 
End of James Hardie Industries plc Fiscal Year 2017

18 May 
FY17 Quarter 4 and Full Year results and 
management presentation

19 May 
Annual Review released

6 August 
Voting Instruction Forms close 9.45am (Dublin time)/ 
6.45pm (Sydney time) for Annual General Meeting

8 August 
Annual General Meeting, Dublin

8 August 
FY18 Quarter 1 results and management presentation

9 November 
FY18 Quarter 2 and Half Year results and management 
presentation

ANNUAL GENERAL MEETING (AGM)
The 2017 AGM of James Hardie Industries plc will 
be held in Dublin, Ireland, at 6.45am Dublin time, 
on Tuesday, 8 August 2017. The AGM will be broadcast 
via a teleconference at 3.45pm AEST. Further details will 
be set out in the Notice of Annual General Meeting 2017.

SHARE/CUFS REGISTRY
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 5, 115 Grenfell Street 
Adelaide SA 5000

Or 

GPO Box 2975 
Melbourne VIC 3001

Telephone within Australia: 1300 556 161 
Telephone outside Australia: +61 (0) 3 9415 4000

Website: www.computershare.com

James Hardie Industries plc 
(ARBN 097 829 895)

Incorporated in Ireland with its registered office 
at Europa House, Second Floor, 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.

©2017. James Hardie Industries plc.

FORWARD-LOOKING STATEMENTS 
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”, 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 James Hardie’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. Many factors could 
cause the actual results, performance or achievements of James Hardie 
to be materially different from those expressed or implied in this Annual 
Review, including, among others, the risks and uncertainties set forth in 
Section 3 “Risk Factors” in James Hardie’s Annual Report on Form 20‑F 
for the year ended 31 March 2017; changes in general economic, political, 
governmental and business conditions globally and in the countries in 
which James Hardie does business; changes in interest rates, changes 
in inflation rates; changes in exchange rates; the level of construction 
generally; changes in cement demand and prices; changes in raw material 
and energy prices; changes in business strategy and various other factors. 
Should one or more of these risks or uncertainties materialise, or should 
underlying assumptions prove incorrect, actual results may vary materially 
from those described herein. 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, except as required by law. Investors are 
encouraged to review James Hardie’s Annual Report on Form 20‑F, 
and specifically the risk factors discussed therein, as it contains important 
disclosures regarding the risks attendant to investing in our securities.

NON-GAAP FINANCIAL INFORMATION
This Annual Review contains financial measures that are not considered 
a measure of financial performance under US GAAP and should not be 
considered to be more meaningful than the equivalent US GAAP measure. 
Management has included such measures to provide investors with 
an alternative method for assessing its operating results in a manner that 
is focused on the performance of its ongoing operations. Additionally, 
management uses such non‑GAAP financial measures for the same 
purposes. However, these non‑GAAP financial measures are not prepared 
in accordance with US GAAP, may not be reported by all of James Hardie’s 
competitors and may not be directly comparable to similarly titled measures 
of James Hardie’s competitors due to potential differences in the exact 
method of calculation. For additional information regarding the non‑GAAP 
financial measures presented in this Annual Review, including a reconciliation 
of each non‑GAAP financial measure to the equivalent US GAAP measure, 
see the sections titled “Definition and Other Terms” and “Non‑US GAAP 
Financial Measures” included in James Hardie’s Management’s Analysis 
of Results for the fourth quarter and twelve months ended 31 March 2017.

FINANCIAL FOOTNOTES
(1)  Unless otherwise stated for fiscal years 2017, 2016, 2015, 2014, 
2013, 2012 and 2011 Adjusted Net Operating Profit graphs and 
editorial comments throughout this report refer to results from 
operations that may exclude asbestos, asset impairments, ASIC 
expenses, New Zealand weathertightness claims, non‑recurring 
stamp duty and/or tax adjustments. 

(2)  Unless otherwise stated for fiscal years 2017, 2016, 2015, 2014, 

2013, 2012, and 2011 Adjusted EBIT graphs and editorial comments 
throughout this report refer to EBIT that may exclude asbestos, 
asset impairments, ASIC expenses, non‑recurring stamp duty and/or 
New Zealand weathertightness claims. 

(3)  Excludes Australian Pipes business sold in the first quarter of fiscal year 2016.
(4)  For fiscal year 2017 the reporting segments were to changed North 

America Fibre Cement and International Fibre Cement. The North 
America Fibre Cement segment includes North America Fibre 
Cement businesses only (previously it included North America 
Fibre Cement, Europe Fibre Cement and certain non‑fibre cement 
manufacturing and sales activities in North America) and the 
International Fibre cement segment includes our Fibre Cement 
businesses in Australia, New Zealand, Philippines and Europe 
(previously it included Australia, New Zealand and the Philippines).

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W .J A M E S H A R DIE.C O M

W

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