James Hardie Industries

TRANSFORMING TO DRIVE 
PROFITABLE GROWTH

Annual Review Fiscal Year 2019

CONTENTS

Operations overview 

Results at a glance 

Chairman’s message 

CEO’s report 

Sustainability review 

Corporate directory 

2

4

6

8

12

BC

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1

JAMES HARDIE 
IS A GROWTH 
COMPANY.

We are aggressively driving organic 
growth above market across 
all our businesses and geographies, 
while being number one in every 
market we choose to participate in. 
We have a global presence, with great 
products and great people and have 
consistently delivered strong returns 
and created shareholder value over 
the long term. We must continue to 
transform to become an even stronger, 
global business with consistent 
profitable growth.

JAMES HARDIE 
– TRANSFORMING  
TO DRIVE PROFITABLE 
GROWTH

Annual Review 2019 
 
 
 
 
 
 
 
OPERATIONS  
OVERVIEW

In fiscal year 2019 we began a significant transformation while 
continuing to create considerable value for our customers, 
employees, investors and the communities in which we 
operate. Our substantial investment in our people, plants and 
market development programs, has enabled James Hardie 
to maintain our strategic industry leadership and create 
profitable growth and deliver superior long-term returns. 

GROUP

NORTH AMERICA FIBER CEMENT

NET SALES 

$2,507M

North America: 
Asia Pacific: 
Europe: 
Other: 

$1,677M
$447M
$368M
$15M

NET SALES

SALES VOLUME

$1,677M

2,308mmsf

 6% from 2018

 3% from 2018

EBIT 2 

EBIT MARGIN 2 

EBIT 2 

EBIT MARGIN 2 

$405M

16.1%

$388M
 2% from 2018

23.1%
 1.1pts from 2018

ADJUSTED  
NOPAT 

$301M

1
9
2

1
0
3

18

19

Please refer to the inside back cover for full footnote references. 
Unless otherwise stated all items denoted are in US currency.

2

GROSS PROFIT

3%

from 2018

AVERAGE NET  
SALES PRICE

$718 per msf

 3% from 2018

KEY

   North America
  Asia Pacific
  Europe
   Research & Development
   Manufacturing Facilities

ASIA PACIFIC FIBER CEMENT

EUROPE BUILDING PRODUCTS

NET SALES

SALES VOLUME

NET SALES

SALES VOLUME

$447M

546mmsf

$368M

816mmsf

 5% from 2018

 10% from 2018

 915% from 2018

 2,300% from 2018

EBIT 2 

EBIT MARGIN 2 

EBIT 2 

EBIT MARGIN 2 

$100M
 8% from 2018

22.3%
 3.1pts from 2018

$10M
 $9.7M from 2018

2.7%
 1.9pts from 2018

GROSS PROFIT

AVERAGE NET  
SALES PRICE

GROSS PROFIT

AVERAGE NET  
SALES PRICE

6%

$724 per msf

837%

$354 per msf

from 2018

 5% from 2018

from 2018

 63% from 2018

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Annual Review 2019 
 
 
 
 
 
 
 
RESULTS  
AT A GLANCE

HIGHLIGHTS

ADJUSTED NET 
OPERATING  
PROFIT 1

$301M

1
0
3

1
9
2

9
4
2

3
4
2

1
2
2

7
9
1

NET SALES 

ADJUSTED  
EBIT 2 

ADJUSTED 
DILUTED EARNINGS 
PER SHARE 1

$2,507M

$405M

68cents

7
0
5
2

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5
5
0
2

,

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2
9
8 1
2
7
,
1

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7
5
6
,
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4
9
4
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1

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9
3

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4

1
5
3

4
5
3

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0
3

3
5
2

6
6

8
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6
4 5
5

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5

4
4

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US EBIT  
MARGIN 2 

23%

6
2

4
3 2
2

3
2

2
1 2
2

DIVIDENDS 
PAID PER 
SHARE 

40 cents

8
8

5
5

5
4

9
3

0
8 4
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ADJUSTED RETURN 
ON CAPITAL 
EMPLOYED 2

28%

GLOBAL 
EMPLOYEES 

4,916

2
1 3
3

1
3

8
2

9
2

4
2

6
1
9
4

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0
6
9
3

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7
7
5
3

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3

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5
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3

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3
8
9
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18

19

14

15

16

17

18

19

14

15

16

17

18

19

14

15

16

17

18

19

Please refer to the inside back cover for full footnote references. Unless otherwise stated all items denoted are in US currency.

4

 
 
INDUSTRY ENDORSEMENTS

US:  
BRAND  
LEADER 

Chosen by 
builders as a 
Brand Leader in 
Builder magazine 
for over 20 years

US:  
MOST 
SUSTAINABLE 
PRODUCT

Green Builder 
Magazine Readers’ 
Choice, “Most 
Sustainable 
Product” 2019

AUSTRALIA: 
NATIONAL 
SUPPLIER 
OF THE YEAR

Won National 
Supplier of the Year 
from Australian 
Plaster & Building 
Accessories

US:  
GOOD 
HOUSEKEEPING 
ENDORSEMENT

HardiePlank® 
lap siding 
is backed 
by the Good 
Housekeeping Seal

US:  
TOP BUILDING 
MATERIALS 
AND PRODUCTS

Listed as top 
building materials 
and products 
by Professional 
Builder 2018

GERMANY: 
OUTSTANDING 
BRAND AWARD 

Fermacell was 
recognised as 
one of the best 
building material 
brands in Germany

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Annual Review 2019

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CHAIRMAN’S  
MESSAGE

In fiscal year 2019 we 
began a transformation 
that we are confident 
will lead to the next 
phase of sustained 
profitable growth 
for James Hardie. 

We start and end fiscal year 2019 with two key transactions 
that will be critical to this transformation. We began the year 
by acquiring Fermacell, which we believe positions us to create 
a significant European building materials business, and toward 
the end of the year we appointed Dr Jack Truong as the new 
James Hardie CEO on 31 January 2019. 

Jack has already set James Hardie on the path of this 
transformation. In Jack we have a strong and capable executive 
to lead James Hardie’s strategic direction, and the company’s 
operational and financial performance into the future. At the 
January 2019 Board meeting Jack presented his 3 year strategic 
plan to transform James Hardie to become an even stronger, 
global business and deliver our next phase of profitable growth. 
The Board endorses the strategic plan to drive organic growth 
above market, deliver strong returns and be number one in every 
market we choose to participate in.

Our North America segment achieved 3% top line growth and 
EBIT margin of 23.1%, which is within our target range of 20–25%. 
Our primary focus for fiscal year 2020 will be to return primary 
demand growth to our targeted range and we are confident that 
the strategic plan that Jack outlined will drive this outcome. 

During fiscal year 2019 we allocated capital to position our North 
America manufacturing network for the future, including continuing 
the start-up of our greenfield expansion project in Tacoma 
(Washington), and the start of construction of a greenfield expansion 
project in Prattville (Alabama). We also initiated the expansion project 
within our ColorPlus product line including equipment, land and 
buildings, this includes projects at our Peru (Illinois) and Pulaski 
(Virginia) plants, and a greenfield project in Massachusetts.

Our Asia Pacific segment once again contributed strong 
results during fiscal year 2019. Net sales increased 11% 
in Australian dollars due to strong volume growth in our 
Australia and Philippines businesses and EBIT margin was 
22.3%, driven by a very strong performance in our Australian 
business. During fiscal year 2019, we continued the start-up 
of the additional capacity expansion in the Philippines, 
and we continued the planning and design of a brownfield 
expansion project at our Carole Park (Australia) plant. 

Our Europe Building Products segment delivered a strong pro forma 
net sales increase of 7% in Euros and an adjusted EBIT margin 
of 10.6% for fiscal year 2019.

6

LOUIS GRIES RETIREMENT
Louis’ contribution to James Hardie has been immense. Louis joined 
James Hardie in 1991, becoming CEO in February 2005 and under 
his leadership, James Hardie delivered strong top‑line growth and 
differentiated returns. The Board would like to acknowledge and 
thank Louis for his considerable contribution. 

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

Our underlying confidence in the strength of our businesses 
and the geographies in which they operate enabled the Board 
to declare a first half dividend of US10.0 cents and a second half 
ordinary dividend of US26.0 cents. 

The resulting full year ordinary dividend declared of US$158.6 million, 
reflecting a payment of US36.0 cents per security, was in‑line with 
the full year ordinary dividend declared and paid for fiscal year 
2018 of US$178.7 million, reflecting a payment of US40.0 cents 
per security. 

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

Overall, we continue to maintain a strong balance sheet and 
our financial management practices remain consistent with 
an investment‑grade rated company.

BOARD CHANGES 
We also remain committed to ensuring we have a strong, diverse 
and independent Board. During the year we added two new 
directors who bring strong business experience and valuable 
perspective to James Hardie.

Anne Lloyd was appointed to the Board on 4 November 2018. 
Anne will stand for election at the 2019 Annual General Meeting 
(AGM). Anne has extensive public company financial and business 
experience and is a valuable addition to the Board.

Rada Rodriguez was appointed to the Board on 13 November 2018. 
Rada will stand for election at the 2019 AGM. Rada has a strong 
understanding of the building and construction market across 
Europe and a deep knowledge of the German market. She also 
has significant experience leading business integrations which 
is valuable given our recent acquisition of Fermacell.

On 23 August 2018 Steven Simms resigned from the Board. 
The Board would like to express its thanks to Mr Simms for his 
service and significant efforts during his tenure.

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ASBESTOS INJURIES 
COMPENSATION FUND (AICF) 
Due to our strong financial performance during fiscal year 2019, 
we will contribute approximately US$100.9 million to the AICF 
in July 2019. This amount represents 35% of our free cash flow 
for fiscal year 2019 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 since 2001. 

ANNUAL GENERAL MEETING
This year’s AGM will be held on Friday 9 August 2019 
in Dublin, Ireland. 

Shareholders can participate via a teleconference. Details regarding 
the matters to be acted upon at the 2019 AGM will be contained 
in the Notice of Meeting and related materials.

Michael Hammes 
Chairman

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Annual Review 2019

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7

 
 
 
 
 
 
 
 
CEO’S  
REPORT

I would like to start by sharing how honoured I am to serve as the 
CEO of James Hardie, and to lead its more than 5,000 employees 
worldwide into the future. I want to thank the Board for their trust 
in me to lead this incredible company. I would also like to take the 
opportunity to thank Louis Gries for his vision and leadership during 
the past 14 years as James Hardie CEO. I am grateful for the very 
strong foundation that he built. 

James Hardie is a company with a global presence, with great 
products and great people. It is a company that has consistently 
delivered strong operational and financial results over the long term. 

However, in 2019 we began a transformation to ensure we become 
an even stronger, global business with consistent profitable growth. 

The Commercial Transformation in our North American business 
will help ensure we return to our growth above market targets and 
ultimately achieve our long term ambition of 35% market share and 
90% category share (“35/90”).

Shifting to being a company underpinned with a Lean mentality 
will not only deliver considerable cost out within our manufacturing 
plants, but ensure we are a global organisation focused on continuous 
improvement in everything we do. 

Our long term value creation targets remain unchanged, and 
we have a clear and tangible three year plan to drive the necessary 
momentum and traction needed to take the next step toward 
achieving these long term targets. 

88

Fiscal year 2019 marks 
the beginning of a 
critical transformation 
that will launch the 
next phase of growth 
at James Hardie.

LONG TERM VALUE CREATION

NORTH AMERICA

35/90 with 20–25% 

EBIT 
MARGIN

with 20–25% EBIT 

MARGIN

ASIA PACIFIC

DELIVER  
GROWTH 
ABOVE MARKET 

EUROPE

1BILLION € 

REVENUE   with 20+% 

EBIT 
MARGIN

GLOBAL
STRATEGY

Organic growth above 
market with strong returns

Be #1 in every market  

we choose to participate in

FULL 
HARDIE 
EXTERIOR

EXPAND 
INTERIOR  
BUSINESS

INNOVATION

LEAN
MANUFACTURING

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BUILD ON  
ORGANISATIONAL  
ADVANTAGE

EMBRACE STEP 
CHANGE

Culture and employee engagement

Empowerment 
& accountability

PDCA Continuous 
Improvement Mindset

Global Mindset

Cross Functional 
Teamwork

Best Practice  
Sharing & Replication

Future Forward Planning 
for Predictable Results

THRIVE ON 
COMPETITION

OPERATE  
WITH RESPECT

’

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ZERO HARM

GLOBAL STRATEGY
Our global strategy is to deliver organic 
growth above market with strong returns 
and to be #1 in every market we choose 
to participate in. 

That strategy begins with the foundation 
of Zero Harm; we are committed to safe 
people, safe places and safe systems. 
The culture of our global company and 
employee engagement is also critical 
to our success. We are cultivating an 
engaged workforce that is empowered 

and accountable, that works cross 
functionally, sharing best practices 
and maintains a global and continuous 
improvement mindset. 

Our global strategy is underpinned 
by four clear strategic pillars: 

 §

 §

 §

 §

Full Hardie Exterior; 

Expand Interior Business; 

Innovation; and

Lean Manufacturing.

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Annual Review 2019

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CEO’S REPORT (CONTINUED)

FY19 OPERATING RESULTS 
Our operating results for fiscal year 2019 reflected good 
and disciplined financial performance in a significant inflationary 
cost environment. Highlights include revenue increasing by 22%, 
adjusted net operating profit increasing by 3% and adjusted 
return on capital employed remaining strong at 28%.

The North American business delivered good volume growth of 3% 
for fiscal year 2019. Our exteriors business continued to grow above 
our addressable market throughout the year. It is a good improvement 
over our fiscal year 2018 performance, albeit below our expectations. 
North America segment generated respectable EBIT margins 
at 23.1%, in a challenging input cost environment. Our management 
team is transforming our commercial strategy and implementing Lean 
manufacturing as our operating approach in North America. We are 
confident these transformations will lead to improvement in our ability 
to execute and deliver on expected results. 

Our Asia Pacific business delivered excellent revenue growth of 
11% in Australian dollars along with 22.3% EBIT margin. The strong 
revenue growth of the Asia Pacific segment was led by market share 
and category share gains in Australia, and supported by additional 
strong volume growth in the Philippines. 

The Europe business delivered strong pro forma net sales growth 
of 7% in Euros for fiscal year 2019 and an adjusted EBIT margin 
of 10.6%, which was in line with expectations. Since the acquisition 
of Fermacell on 3 April 2018 the integration has progressed well 
and we continue to be encouraged by the early indicators from 
our European business.

NET OPERATING  
PROFIT AFTER TAX 1

$301M
 3% from 2018

EBIT  
NORTH AMERICA 2

$388M
 2% from 2018

EBIT  
ASIA PACIFIC

$100M
 8% from 2018

EBIT  
EUROPE

$10M
 9.7M from 2018

1010

ZERO HARM 

Zero Harm is a non-negotiable value 
for our company, as employees of 
James Hardie we are all responsible 
for Zero Harm and we need to 
demonstrate that commitment every 
day. In FY19 we made progress in 
our Zero Harm journey, improving our 
Incident Rate from 1.10 to 0.84 and our 
DART Rate from 0.50 to 0.39. However, 
we still have significant work to ensure 
we continue to improve and achieve 
our Zero Harm goal. 

SUMMARY
This is an exciting time for James Hardie as 
we transform our business to drive even more 
consistent profitable growth globally. I am confident 
that we are on the right path with the right talent, 
drive and capability to reach our goals of being 
a world class company.

Dr Jack Truong 
CEO

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OUTLOOK 

We expect to see modest growth in the US housing 
market in fiscal year 2020. The single family new 
construction market and repair and remodel market 
growth rates in fiscal year 2020 are expected to grow, 
albeit at a growth rate lower than that in fiscal year 
2019. The company expects new construction starts 
between approximately 1.2 million and 1.3 million.

We expect our North America Fiber Cement segment 
EBIT margin to be in the top half of our range of 20% 
to 25% for fiscal year 2020. This expectation is based 
upon the company continuing to improve operating 
performance in our plants, higher net average sales 
price and mix, continued inflation for input costs and 
modest underlying housing growth.

In Australia, it is anticipated that our addressable 
underlying market will decrease in fiscal year 2020 
compared to fiscal year 2019. Net sales from our 
Australian business are expected to continue to trend 
above the average growth of the domestic repair and 
remodel and single family detached housing markets 
in the eastern states of Australia.

We expect our Europe Building Products segment 
to achieve year on year net sales and EBIT 
margin growth.

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Annual Review 2019 
 
 
 
 
 
 
 
SUSTAINABILITY  
REVIEW

SUSTAINABILITY HIGHLIGHTS

Drove our Zero Harm initiative which led to 
the implementation of James Hardie’s global 
EHS Management System

Engaged in Lean Manufacturing 
transformation through the implementation 
of the Hardie Management Operating 
System (HMOS)

Invested in plant infrastructure to 
upgrade Water Recycling Capability 
and Reduce Water Use

Continued to support corporate and 
employee engagement in local communities 
where we live and work

Upgraded our ISO14001 System 
at three North American plants 
and at our European plants 

Selected the 2019 Readers’ Choice 
“Greenest Siding Product” 
by Green Builder magazine

12
12

SUSTAINABLE MANUFACTURING 

James Hardie’s commitment 
to environmental 
excellence and the value 
the company places on 
long‑term sustainability is 
reflected in its maintenance 
of a comprehensive 
environmental management 
system together with our 
commitment to efficient 
manufacturing processes. 

In fiscal year 2019 we introduced the Hardie Manufacturing 
Operating System (HMOS). HMOS drives improvement in 
our manufacturing and environmental performance through: 
(1) Employee Engagement and Empowerment, (2) Elimination 
of Daily Variability, and (3) Continuous Improvement in the 
Manufacturing Processes. HMOS is a key aspect of James Hardie’s 
sustainability initiative, continually driving collective improvements 
in manufacturing efficiency, resource utilisation, and housekeeping.

James Hardie manufactures products that reflect our commitment 
to environmental stewardship. By producing environmentally friendly 
products we contribute to a variety of LEED New Construction 
points including:

James Hardie ® Exterior Products:

MR5 (MR4 for Homes) Recycled Content
MR5 (MR4 for Homes) Regional Materials

James Hardie ® Interior Products:

Low‑Emitting Materials (our HardieBacker ® product line 
is certified GREENGUARD Gold)

Sustainably Manufactured Product Highlights:

 § High quality standards for the raw materials used to drive best 

in class performance of our products;

 §

At least 75% of our raw materials are locally sourced, reducing 
the environmental impact caused by transportation of materials;

 § Our 19 manufacturing plants on four continents support the 

respective regional economies in which they are located, again 
reducing the environmental impact caused by transportation 
of our product;

 § Raw materials such as cement, cellulose pulp, sand, and water 

are low in toxicity; and

 § Durable fiber cement and fiber gypsum materials not only require 
fewer resources for replacement, but help reduce maintenance, 
repair and replacement costs.

ZERO TO LANDFILL IN EUROPE

James Hardie Europe has four fiber gypsum 
manufacturing facilities across three European 
countries: Germany, the Netherlands and Spain. 
We are proud that all of these facilities are zero 
waste facilities with no landfill generated. We utilise 
four sources of gypsum, three of which are recycled 
materials. The fiber we utilise in our fiber gypsum 
products is produced from waste paper which is 100% 
recycled. We are proud to maintain a manufacturing 
process that leverages a majority of materials that 
are recycled and produces zero waste.

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Annual Review 2019 
 
 
 
 
 
 
 
SUSTAINABILITY REVIEW (CONTINUED)

ENVIRONMENTAL MANAGEMENT 
& STEWARDSHIP

James Hardie embraces an Environmental Policy that is based 
on four guiding principles: 

CEO MESSAGE ON 
SUSTAINABILITY REPORTING

RENEWABLE AND 
RECYCLABLE RESOURCES

WATER, RESOURCE AND 
ENERGY CONSERVATION

PROTECTION OF THE 
ENVIRONMENT

FULL LIFECYCLE AND 
PRODUCT SUSTAINABILITY

James Hardie remains committed to implementing innovative 
solutions that optimise the use of raw materials, water and energy 
resources. Environmental stewardship highlights include:

 § Beneficial use of waste water for companies 
in the mining industry near our facilities;

 §

 §

 §

 §

Enhanced recycling of waste material into our 
manufacturing process;

Improved raw material use from improved 
manufacturing yields;

Installation of energy efficient LED lighting across 
our global operations;

Enhanced boiler efficiency modifications in our 
Asia Pacific operations;

 § Beneficial use of 100% recycled paper 

in European fiber gypsum operations; and

 § Upgrades to ISO 14001‑2015 standard in our 

North American and European plants. 

14

The Executive Leadership Team and I are 
committed to delivering a full sustainability 
report by the end of fiscal year 2021. 

We have decided to adopt the Global 
Reporting Initiatives (GRI) framework. The GRI 
will provide a framework for us to report on 
material topics, their related impacts and how 
they are managed, and is the most widely 
adopted framework for Environmental, Social 
and Governance reporting. 

Management’s plan has the full support of the 
Board. As we engage in this transition toward 
fiscal year 2021, we will continue to improve 
upon the sustainability reporting we include 
in our Annual Review and Annual Report 
on Form 20-F. 

Dr Jack Truong 
CEO

ZERO HARM SAFETY CULTURE 

Our Zero Harm Safety Culture mission is to become a World‑Class Safety 
Organisation focused on Safe People, Safe Plants, and Safe Systems.

SAFE PEOPLE
Committed and Passionate Safety Leaders

Team Members who are empowered and engaged

Visible Commitment 24/7/365

SAFE SYSTEMS
Provide the structure 
for Zero Harm

Sets clear Standards 
and Expectations

Real time data to support 
risk reduction and 
continuous improvement

SAFE PLACES
World Class Facilities

A focus on continuous 
improvement through safety 
in design

Housekeeping as the 
barometer of safety

ZERO HARM IN ACTION 
IN OUR COMMUNITY

PRODUCT SAFETY 
– RESOURCES ON THE GROUND

Zero Harm extends beyond the workplace. A James 
Hardie employee at our Pulaski (Virginia) facility 
was recognised by leadership for providing a high 
visibility vest to a citizen directing traffic at the 
scene of an auto accident and for taking the time 
to provide instruction on how to position himself 
on the road to reduce risk. One of many examples 
of James Hardie’s Zero Harm initiative in action.

More than 50 technical specialists around the country 
share their expertise in training and applying installation 
best practices, building science fundamentals, 
construction and installation efficiencies, and small 
business development assistance. In many parts 
of North America, this includes on‑site “First Board, 
First Nail” training at the beginning of key projects 
to ensure they get off to the best start possible.

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In February 2019 our Wijchen, Netherlands plant 
celebrated 1000 days without a safety incident.

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Annual Review 2019

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15

Annual Review 2019 
 
 
 
 
 
 
 
SUSTAINABILITY REVIEW (CONTINUED)

SOCIAL RESPONSIBILITY

ASBESTOS FUNDING

James Hardie and its employees contribute to and support 
community improvement activities in the areas in which we operate 
through participation in and monetary donations to charitable 
groups and activities, including:

 §

 §

School supply drives at various locations across the company;

Food donations and food drives for homeless shelters;

During July 2019, James Hardie will contribute approximately 
US$100.9 million to Asbestos Injuries Compensation Fund (AICF). 

This amount represents 35% of James Hardie’s free cash flow 
for fiscal year 2019, which James Hardie is obliged to contribute 
as part of its commitment under the Amended and Restated Final 
Funding Agreement (AFFA). 

 § United Way Labor of Love initiative – Repairs and winterisation 

of over two dozen homes near our Peru (Illinois) plant;

Including its July 2019 contribution, James Hardie will have provided 
over A$1.3 billion towards asbestos compensation. 

 §

Toys for Tots;

 § Habitat for Humanity;

 § Relay for Life;

 § Wreaths Across America;

 § Over US$1 million in employee and company matching 

donations to charitable organisations; and

 § Donated over US$100,000 of building products to the 

Christopher House, a family of schools that helps low‑income, 
at‑risk families succeed in school, the workplace, and in life. 

Annual Actuarial Assessment

KPMG Actuarial conducts an annual actuarial assessment of AICF’s 
liabilities as a regular update of projections in line with actual claims 
experience and the claims outlook. 

James Hardie received an updated actuarial report from KPMG 
Actuarial at 31 March 2019, which showed the undiscounted and 
uninflated central estimate net of insurance recoveries decreased from 
A$1.443 billion at 31 March 2018 to A$1.400 billion at 31 March 2019.

James Hardie discloses summary information on claims numbers as 
part of its quarterly results releases. For additional information, please 
see the full 2019 actuarial report of KPMG Actuarial, which is available 
on our Investor Relations website (www.ir.jameshardie.com.au).

16

WORKPLACE SAFETY 

We are fully committed to providing a safe and healthy 
working environment for every individual that works 
at or visits any James Hardie site.

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In fiscal year 2019, our global Incident Rate and Days Away, Restricted or Transferred (DART) rates were 
0.84 and 0.39, respectively. These rates are significantly better than the average in our specific industry, 
cement and concrete product manufacturing, which had rates at 5.0 and 3.2, respectively. 

We strongly believe that any injury at any one 
of our sites is one too many. During fiscal year 2019 
we continued to intensify our progress on our Zero 
Harm Culture initiative, with an enhanced focus 
on our commitment to provide a workplace that 
does not result in physical harm to any individual 
at any of our sites. We ensure our employees are 
included at the core of this commitment through 
their active participation in our Safety Culture 
Steering Committee. The Steering Committee 
consists of a broad cross-section of employees from 
each plant as well as representatives from various 
corporate manufacturing and support functions. 

The Safety Culture Steering Committee developed 
and is now implementing their multi-year plan 
to attain our Zero Harm Culture goal, with specific 
emphasis placed on a number of safety activities 
such as: 

 §

 §

SafeStart ® and Milliken Safety Way ® 
training for manufacturing employees and 
management team members;

Sustainable housekeeping in manufacturing 
plants as part of our 5S initiative. Our 5S 
housekeeping standards are Sort, Set in order, 
Shine, Standardise, Sustain;

 §

 §

Installation, evaluation, and improvement 
of our dust capture and control mechanisms 
to eliminate harmful employee exposures 
and to ensure compliance with the OSHA 
Silica Standard;

Inclusion of intensive EHS analysis 
in all plant process modifications and 
expansion projects;

 § Global standardisation and optimisation 

of safety procedures and processes to ensure 
minimum standards are implemented across 
our world-wide operations;

 §

 §

Implementation of our Zero Harm 
Management System that provides 
reporting, root cause analysis, corrective 
action tracking, and other data analytics 
to support and focus resources on 
opportunities for improvement; and

Provide tools and training to the installation 
specialists James Hardie partners with 
to ensure our product is installed safely 
and correctly.

Annual Review 2019

17

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2019 KEY DATES AND CALENDAR

31 MARCH

21 MAY

22 MAY

7 AUGUST

End of James Hardie Industries plc Fiscal 
Year 2019

FY19 Quarter 4 and Full Year results and 
management presentation

Annual Review released

Voting Instruction Forms close 10.00am (Irish 
Standard Time) / 7.00pm (Australian Eastern 
Standard Time) for Annual General Meeting

9 AUGUST

Annual General Meeting, Dublin, Ireland

9 AUGUST

FY20 Quarter 1 results and management 
presentation

12–13 SEPTEMBER

Europe Investor Tour – Dusseldorf

16 SEPTEMBER

North America Investor Tour – New York City

7 NOVEMBER

FY20 Quarter 2 and Half Year results and 
management presentation

CORPORATE HEADQUARTERS
Europa House, Second Floor 
Harcourt Centre 
Harcourt Street, Dublin 2, D02 WR20, Ireland 
Telephone +353 1 411 6924 
Facsimile +353 1 479 1128

ANNUAL GENERAL MEETING (AGM)
The 2019 AGM of James Hardie Industries plc will be held in Dublin, 
Ireland, at 7.00am (Irish Standard Time), on Friday, 9 August 2019. 
The AGM will be broadcast via a teleconference at 4.00pm 
(Australian Eastern Standard Time). Further details will be set 
out in the Notice of Annual General Meeting 2019.

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 850 505 
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, D02 WR20, 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.

©2019. 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 2019; 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 2019.

FINANCIAL FOOTNOTES
1 

 Unless otherwise stated for fiscal years 2019, 2018, 2017, 2016, 2015 and 2014 adjusted net operating profit graphs and editorial comments throughout this report refer 
to operations that may exclude asbestos, asset impairments, New Zealand weathertightness claims, acquisition costs incurred prior to the close of Fermacell and product 
line discontinuation expenses.

2 

 Unless otherwise stated for fiscal years 2019, 2018, 2017, 2016, 2015 and 2014 adjusted EBIT graphs and editorial comments throughout this report refer to EBIT 
that may exclude asbestos, asset impairments, New Zealand weathertightness claims, acquisition costs incurred prior to the close of Fermacell and product line 
discontinuation expenses.

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