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James Hardie Industries (JHX)

Participants
Harold Wiens Interim CEO
Sean Gadd North American President
Ryan Kilcullen Executive VP of Global Operations
Jason Miele CFO
Lisa Huynh JPMorgan
Lee Power UBS
Peter Steyn Macquarie
Andrew Scott Morgan Stanley
Keith Chau MST Marquee
Peter Wilson Credit Suisse
Daniel Kang CLSA
Simon Thackray Jefferies
Sam Seow Citi
Paul Quinn RBC
Anderson Chow Jarden
Call transcript
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Operator

0:01 Thank you for standing by, and welcome to the James Hardie Industries Q3 FY22 Results Briefing. [Operator Instructions]. 0:26 I would now like to hand the conference over to Dr. Harold Wiens, Interim CEO. Please go ahead.

Harold Wiens

everyone. Hello, X:XX our to fiscal XXXX year And third call. earnings welcome quarter James Interim Wiens, Harold Hardie. CEO I'm of On page will statements. X, you on cautionary forward-looking note see our standard note statements, contain of Please financial presentation the non-GAAP also use forward-looking information. this that and does where on and our today. X, for will see X:XX Let's page you move to agenda speakers Gadd; by Vice Executive President Global Operations. be I'm Jason our our proud joined to North and Meili; CFO our American President Sean of Kilcullen. Ryan with Sean, Ryan will a and strategy presentation Today, X:XX start update. I the the discuss on and guidance. will Then, financial update quarter Jason provided an third a results AICF review Funding that, After we'll take your questions. we I world XXXX begin, employees X:XX deliver their like Before our to the around to though, results. for to opportunity take strong this from of continued just each thank effort would our financial commitment results without strategy. possible global our our and of be their would of execution None turn X:XX page With that, let's X. to

is Our members. across embedded all strategy three team and unchanged, and our XXXXs remains of it all regions

our ESG. commitment and to Harm Our strategy incorporates Zero

Our are around strategy chain starts with foundational and actually integration. customer LEAN initiatives. supply execution partnership three our manufacturing, focus and strong They

initiatives three Over strategic three foundational drove our is transformation. these last years, it the that

lifestyle a Chip Gaines. Magnolia, & the wildly Hardie fixer Now our with new to and is growth home these commercializing successful strategic proud through demand, embedded turn initiatives company, profitable America. name became Chip updates trusted our and are Today, excited the announce Magnolia of finally on by focused driving profitable provide to page homeowner categories. and into With initiatives. penetrating all across we'll and on team Through brand directly drive six. segments & to James strategic global following upper. please existing in Joanna's now these by three household to X:XX Marketing new partnership show, initiatives. continuing create Joanna X:XX we founded popular the fully globally to expanding in growth and innovations

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months. X:XX three let's Now to four expect more page over to You to the see should on seven. partnership this news turn next

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primary texture with texture sculpted the accent. home used finds Here then a with the you of see cladding as rendering a as a central our clay group

research referred this texture. performed with a of the On and some sculpted like we appearing clay product the slate. right, is up When architects almost to as homeowners, close insights

bottom it a many to texture. While house. clay, of brick, We described the product storey ultimate used provides on the believe XX:XX masonry this half hence fantastic like other a of two name and alternative techniques stone looking this

As you a design architectural panel of are all clay with to at page look myriad turn deliver it or Well, could other planks be with this a panelled Hardie to textures, pairs sculpt can fine please but image, can textures building that and Finally, to well Hardie seagrass. aesthetics. sand see exterior take existing in and also X our sand textures materials XX:XX fine and sand, today. moulded deliver used

traditional provided of more these is As the forward Woodloch unique. of do rendering here mentioned and but at texture looks up IBS week. We style the gray a architects, XX:XX this house is the date. beyond this the shown believe in homeowners the to white. the product customers to aesthetic designs as I significant and on our texture. in and pointing look. of is by right great close with not used materials the new here, new we seagrass products Our seagrass space, builders, seagrass be horizontally. with as showing exterior contrasted new the The currently texture truly an providing house in boards a On building we're delivered truly energized front we seagrass shows this installed can more look installed XX:XX also later earlier, most expansion vertically texture We have This believe

only the of the first not are is However, we collection. done. generation This

to evolve the to at design North our day forward to more builders exterior strategic collection and we endless am I with view intent designed hand some home pleased over empower to the Our to continue XX:XX progress of architects, options in homeowners, discuss is even America. as now Gadd Sean possibilities.

Sean Gadd

is XX:XX and It Thank good speak morning all and to Harold everyone. to pleasure again. you, you evening good a

team's today They're to North left portfolio price American achieved driving a in side in provides simple XX:XX a year which value shift to our the matrix partnership the Tod on and on illustration provided now driving right, of is with a hand illustrating product of profitable product a all this mix Key our focus the added We growth a XX. a turn page, in and ‘XX. page customers customers. have our the Let's homeowners. fiscal mix and is high familiar value to product and with

seen mix strategic America the XX%. for ended Our importantly, North months more mix have intent. nine we growth XXXX, long-term expectation for our ‘XX In XX, December product plus fiscal year and price in

in specifically in the X, the increase products ’XX, strategic the the banded attributable growth price our continue to the want to mix in of to the to to proportion to of proportion Continue fiscal increasing the brand. North the ColorPlus plus ’XX, in start grow our volume will Hardie drive plus January you the we in discussion of see branded R&R by and was America volume volume. our important today's to exterior expect proportion in in continue regards fiscal this high American addition, benefits In the increase product backerboard attributable to the last fiscal product and In growth. increase this XX%. year XX:XX to and represents bar in mix ’XX, XXXX, and decrease ColorPlus XX% experience shifts XX:XX the mix Most we the We decrease of price on our from mix. expect proportion In sampling is continue in North FYXX. increase in long-term addition we Collection In year get X% volume consumer. and mixed of driven small year intent Architectural mix to to hottie to be of range father price to to chart, and proportion the chart, volume

that can new to achievable. expand the to significant to drive you products and ColorPlus. is growth proportion innovative believe our this intent of We continue is see, As our with

to to on critical in for products. are and and focus payment continuing the continue let's to the partner I'll discuss of we importance turn America. well-positioned marketing market directly repair and America. repair Now future with and significant we customers, North remodel penetration our remodel in believe commercializing XX initiatives. So XX:XX is the innovative our & of the three accelerate strategic to segment to to penetrate growth three two One homeowner new repair North We remodel in believe market opportunity the page

tried by closely this by brand homeowner, innovative to want, new homeowners do marketing the Having products and but size will and We this opportunity it at homeowner enhancing its of to broader directly exciting the right the and resilience I've this partnering is conditions. the including product with market about the remodel with trust market customers, the our partners. the of XX:XX to credibility page. the is that bottom summarize

sold into to XX% position our with mix current approximately First, we already R&R. strong R&R have XX% market in being of

the Second, large homes old. opportunities with our over XX years million XX

hand around specifically States. for equity past basis believe We the of remodel higher is rates, a homeowners any is markets in United to homeowners turned believe North market focus equity home Third, the for amount the considering segments which more right for than lot Kilcullen interest wealth never out change over the I'll loan earlier. all-time I weeks. resilience approximately their by $XXX,XXX right their the the and home, the other accelerate $XX,XXX remodel an on team have I Four, now to a dollars, products, of have average, monthly to resilient. right $XX. few in been the XX:XX penetration remodel believe mentioned rates R&R to point equity partners especially the global discuss not interest can to is the the do have home homeowners expansion. high. space payment in segment changes it will of Currently, deciding There's been of We strategy, homeowners in regular rates capacity has the this XXX changes taking we home Ryan the in of America. right I

Ryan Kilcullen.

Sean Please everyone. and global XX:XX on to page turn afternoon, good update good expansion and an XX, will Thank you, capacity morning our plan. provide transformational

imperative into kept to it profitable ahead that As growth is supply we demand. regularly new capacity segments, add existing ensure of and drive that is we

strategically in one ColorPlus mix standard adding network projects phase, today. ups, Peru, in In capacity customers network. well, Sean nameplate of truck to product are These already XXX million have ramp online which a add plan South standard XXX number We projects significant blue are earlier, from seats expected the number We market. million located of in slide ensure a the those expansion to XX:XX is is Summerville high commissioning us capacity in additional additional and coming restart our Prattville commissioning just three two, we today. product trim and on continue Prattville saleable to We're from as and finishing do to to July which that, identified production are to of between North finishing be of capacity the to production. which plan included capacity next These which mentioned ColorPlus globally to R&R finishing ColorPlus this nameplate have not on we're product more year. capacity months. our new following we ramp sheet finishing machines XX Tacoma, and Facility, ColorPlus the first September projects of expect we America, our in capacity to which Alabama our ongoing slide, delivering of ship facility enables this within add have projects finishing North capacity include capacity indicated adding ColorPlus addition Carolina facility, feet Washington, this and up integrated to this capacity our our American scheduled commissioning This to critical our schools our adding and Alabama month. Summerville deliver Illinois. later months the Those product, value These for Trim our commissioning are This XX:XX HLD capacity and our Westfield, In about penetrating will ramp ups, customers. segment. dates each. as follows. the and that Massachusetts, additional with Northeast XX we to In

Facility, another of America, fee our capacity. in adding machines million XXX which be Prattville North to add nameplate sheet will Finally, Alabama we'll two standard

months. fiscal capacity Asia site our And We're in to next demonstrate finally, ahead we we is Fiber currently begin Pacific, additional to at Spain months nine capacity adding from selection months we capacity and which over land be these projects demand continue approximately Brisbane at three is the site, the phase will for commissioning months. Park in brownfield in market site next to all acquisitions that regions regions. we as approximately today. Greenfield year And Cement these about brownfield they focused six scheduled ’XX have we this anticipate chips process plans all the In making addition in are of to expansion is today. truly in clear from capacity Orejo, the months, in which on in to We three What the fibre facility have We are is XX:XX projects, This XX global and XX XX:XX plans which Australia. QX announce Carole commissioned transformational occur. XX expansion expect to plan. planning plan to for add a commission

to four $X.X it as projects on the into regularly anticipate investing we capacity next it billion accomplish we mentioned short With I've profitable I Jason and new hand drive that. about demand. is existing of long-term that, is will earlier, this that we over The expansion spoken I'll just US CFO, on and kept add page. today and that the that years, As billion ahead between initiatives our ensure Over supply growth $X.X Miele. segments, XX:XX to imperative dollars now

Jason Miele

time to continued but I'm XX:XX financial commentary and want we you, afternoon, are morning, the not XX today, and to slide your strong to on slides, AICF deliver In the the results. There discuss market start them the focus I keep to speak We guidance XX:XX sure, reference. returns. global I on and within will third with have a global my on answer our growth make standard above our included Thank few will your team of results to for quarter, of the brief Appendix third Ryan. update quarter. everyone. on Good and today good financial questions. provide funding, all we going an have

execution global digit deliver regions sales growth and digit global net increasing $XXX.X in adjusted continue move income to sales million. to and double adjusted net million. $XXX our Global North three double invest to to the strong execution to the growth results. To America million third third adjusted with XX:XX was support strategic growth growth. The price delivered team growth XX% significantly and delivered of EBIT penetration growth XX%. in in sales quarter net customers. our exceptional $XXX.X of momentum, partnership XX% product net to Let's of continued The XX% EBIT, quarter, increasing close to we XX mix increasing and price maintain driving team global In mix discuss page through XX% $XXX.X volume million. delivered the high-value teams our all North As resulted American XX% The in initiatives.

execution continued we at top able results increasing with of a adjusted foundational XX% addition, margin a bottom were In line with our translate EBIT, initiatives, of into $XXX.X strong the to to XX.X%. million line outcome

EBIT XX:XX capability. We continue high-value future continued and outstanding contributed growth sales price the quarter, through team's to mix. to page increased growth innovation penetration product million which execution €XX.X to increased in significant investment talents through sales now XX% the to adjusted we to of net XX, Turning delivered Cement an and million. the XX% Europe In results. XX% net make in will sales in marketing discuss third The growth the XX% quarter, Europe, €XX.X in increased the was strategy, net Fiber

be year. are XX cost set in resulted to XX:XX to hyperinflation inception along This provided top delivered each and discuss our up performed cash been details of team up calculations than two hyperinflation June June Let's business European In was XX determine XX cash is AICF the The the XX, approximately our the of in to to calculations, with our Further, James leading manufacturing in high-value we adjusted that calculation up XX:XX AICF an fiscal the of EBIT the significant it XX% helped percent to on XX:XX Hardie’s been. XX.X%. energy calculation year points annual mix believe ’XX. impacted June business APAC we operating on will on XX:XX percentage be the contribution required quarter. XXXX when Calculation have sales The year of The of of a page XX% €X.X and calculation. region. quarter across I to anticipate XX% the The the operating was to to to This XXXX continue references the remains terms to the execution This AICF position. make this calculation penetration, in lower that be million in calculation and January, our provide A$XXX.X Now margin environment, will growth consider the this terms of the as adversely EBIT paid AICF June Pacific costs. cash contribution flow. We recent driving of product focus XX, since would one on the being and a cash contribution calculation. AFFA, EBIT on tops XXX refer to page As will percentage must adjusted on years of Calculation the does million James of the to consistently Amended AICF, by momentum. Pacific. of mix is given to liquidity Per to the flagged of business we're to move growth growth gain AICF AFFA. to our calculation years, in contribution these estimate funding. XX% XXXX. to XX% are which the on liquidity. appendix growth of fiscal product price in in otherwise top Hardie the have basis contribution Based net business the continues moving the the calculation Europe Per Funding the resulting cap Agreement, two margin the of page flow update Asia in operating third not source XXXX, the continues data. June an of up LEAN determine in the the the XXXX its annual we on flow and flow, to ensuring to three current has to forecasts, high-value that adjusted Execution annually, in utilized top we the the has lower now inflationary performed offset the be track Final AICF strong Asia AICF. XX%

Today, So you you calculation we have our in significantly. AICF. as A$XXX now the the review January million actuaries our detail believe the XXXX and understand investments. claims increasing cash contributed Let's can for few with operating on we Hardie three data AICF, performed Now page we has have the to made be of the years has calculation. our lags flow. to by James over AICF the the June as in are robust simple an guidance. The Xth, in in to year will top significantly, calculation investment cash calculation year investment XXXX. terms reiterate, the XXXX, longer-term, AICF’s up few we are move XX anticipate as and we dramatically how annually. XXXX the we will the indeed has and to estimate specific that the AICF up curve page fiscal AICF approximately and persist. this over has the cash June remain to XX. sources be the these XX% contributions in to persist future within of the work up to year when and If continue resulted approximate our we is the operating XX:XX determine XXXX. reducing situation the fit, does A$X.X up AICF To cash years a calculation AFFA billion June the a see XX% fiscal past as page flows estimated ‘XX. example, the cash a claims the increased cash calculation the that way curve upcoming which cash believe and calculation and approximate XXXX, June to to turn projected amount top To to And in operating create We top should to and determine contribute and top the claims to calculations now the in fiscal flow the balance, top approximately paid better calculations and the discuss contributions to calculations where XX:XX the This in XX:XX the balance strong our will this past of our the to committed anticipate contribution In of to AICF position, this years continue grown pleased We let's robust combined to should AICF in discussion. continue XXXX, payment

combined both CEO associated determined will Our year guidance execution of million year that year as and fact product income guidance. net in we guidance assumed $XXX fiscal Today value full-year year the share ’XX. providing $X will ’XX adjusted to range the fiscal adjusted guidance in financial from a LEAN to introducing favorable income. are guidance mix expect impacts the fiscal guidance. to net in net market penetration XX:XX income raise providing year related mentioned XX:XX points revised segment, regions, Turning our in X, Subsequent income it would net million confidence and we benefits XX, fiscal a in XX:XX have and range The the $XXX a and $XXX high in America We demonstrated on adjusted $XXX of net not On momentum that will but in that of these guidance regular ’XX. reported fiscal from income and guidance and represents adjusted rather year North we a earnings relates note net two XX% specific adjusted XXXX to termination CEO this to continued range XXXX specifically to benefits ’XX. we January with ’XX leave all income impact $XXX to January costs. be million in we and termination net in XX% net million. we're $XXX of adjust updated costs I X, year in discuss One as costs these call gives XXXX of fiscal the net fiscal page XXXX, million range earnings year million. adjusted benefits ’XX well on as fiscal range $XXX of us income ’XX year-on-year for three fiscal gains with fiscal raising adjusted the year fiscal our amounts adjusted we full year guidance related item to XXXX year XXXX, to guidance. approximately income fiscal million, and year year In million improvement for excluded

net EBIT XX:XX expect tax Lastly, of currently out margin to that and I wanted we XX% basis growth points. XX%. First, we point rate anticipate to XXX effective of an XX% we XXX an adjusted XX% in increase range to of sales to in expect the

However, we today's XX:XX updated presentation throughout taxes potential to appropriate. year on for adjusted as further page summarize note to wanted Before the that highlight guidance will adjusted provide XX. we international moving the ETR movement could in there's on questions, the our impact and ETR, of we

clear partnership two products by global we Collection, of our brand that against week, home at we the the execution founded homeowner. the to showcase Commercializing decisive last brands fiscal Joanna XX:XX we International Hardie Sean Global strategy have the today including intent and of announced brand continued initiatives, popular repair price/mix capacity builder marketing our strategic year We High and significant our The resilient described with drive continue & ’XX, remodel growth. Architectural we will our Sean outlines announced Today value mix, how and penetration importantly, show. Magnolia, new directly large drive to to long-term more to but lifestyle strategic and accelerate price/mix late strong continue this launch segments. market, Gaines. Chip to growth in the expansion. will innovations, a

net expect more our our of a believe was As income that strong XX:XX fiscal to a continue range be years guidance cash fiscal year fiscal $XXX $XXX ’XX announced net new guidance we income operating year strong profitable ahead double that which Ryan our demand. just of adjusted outlined, to deliver In regards against ensure midpoints compared fiscal growth. adjusted us million, to is highlights, Hardie. to We XX% fiscal ago. ’XX, increase XX% adjusted of continue the to capacity to Finally, XX%, we million is to three fiscal we ’XX continued truly than by This $XXX into of our an between add we financial to In year to we million. transformed illustrated $XXX flow. AICF payments have ’XX on net of strategy James XX:XX income year plan year the we the our have of year XX% ‘XX clear to execution ’XX guidance million, our is announced enable to

chairman. the be will nor wanted session, Those flag any prior the into to the search questions to CEO, regarding head about CEO. a directed questions of we Before the I new not that Q&A questions answering we be should for the termination

understanding. department, If you out IR your reach they have have for Q&A regard, answered. we appreciate in please the concluded further to our be any Operator, questions arrange remarks. those this can to Please commence prepared our We and session. questions

Operator

XX:XX go JPMorgan. Lisa Your Please comes from Thank Hagan question first from ahead. Instructions] you. [Operator

Lisa Huynh

XX:XX Hi, good morning team.

year, elaborate in driving [Indiscernible] do terms XX:XX can uptake you're be can America, Better in tailoring approach uptake drive? will some this through it your in of to North the we’ll, or product you how markets? on your get So think you Northeast you of existing just

Harold Wiens

our goes that my least expect for outgoing perspective, back the Northeast their in the most to work targeting at remains in consumer, to if we and an extra remain XX:XX [Indiscernible] Northeast the look with partnership six together our we through a basically will looked penetration. with be to going segments, from expanded. that R&R months Magnolia perspective, to so it's before And our accelerate of

Now my as brand, goal as is a national a brand.

we've the penetration I color nationally So do [Indiscernible]. grown

Lisa Huynh

that's Yeah, right. XX:XX

is APAC by So regions North uptake Hardie a talk pursuing more shifts can as whether higher moving that like ASP generic which it now in more ColorPlus other just bit APAC board the recent driven expect, we were ASP you well, America? you're should in looks – or seen about and you to outside board the of

A –Jason Miele

across is Asia the the than differ high-value about strategy different Lisa, But products America in don't APAC three. same Europe sell in product pack. It's high-value color are same. products. by in the region. is Yeah, the all strategy versus we the XX:XX location, They currently, high-value products But North

can higher the our products the So where customers, those of I'm partnering we segments through value with penetrating right push more homeowner.

So customers the the high our us. delivering to higher. and for way the our And we're homeowner for in were connecting homeowner is good products through customers, which same value to ultimately the ensuring the all regions is three is value and

Operator

Thank XX:XX you.

go from comes Your Power Lee from question Please next ahead. UBS.

Lee Power

XX:XX Hi, you. thank

American You've growth kindly XX% the it probably the market to for to think shots you've in XX% share the told given your of So what going to step how to we XX% that kind and FYXX. there should sales get guidance assumption? you net Is X% FYXX? to from through possible is North mixed us do

Harold Wiens

thank fairly we respect X% somewhere we be is going have of low-single and and sort market question. to between believe XX:XX volume From favorable, perspective, is you our Yeah, be good and the seen, going with my XX%. to digit

price So obviously to then Understand up will taking already move we're color, R&R driving on come believe more the through as focus going price segment. mixed that the rest we we the we've mix. in towards be to we taken and share increase. continue X% I think

Lee Power

run placed cost you. seen, Yeah, generally happen? hyperinflation inflation and than price like, to needs XX:XX with input one to more quoted in then increase, you've how And I and think obviously the price it do increase? increase think annual you will price be – Europe, a traditionally just do on pretty taken year? an that if thank the mean, accept And you've we've significantly, doing market about you then up out how

Harold Wiens

perspective, long-term have when taken XX:XX year X%. would Yeah, we from our talking typically guess, this basis, X$ you're more I year, every we took to X%

in through right then as We the mix Technology with increase, we'll drive next our strategy rest into Business and going customers year, be pricing. of price working our price considering and we together them the North we'll American price our get have with the planned now as the

Jason Miele

where significant nine in that margin significant through we, through talent into and just our with EBIT in said, Yeah, long-term we And months. add we're inflation and now giving to business assuming marketing, you going we've guidance that for January future. North partnerships XX:XX about and just North And next this as line XX%. is obviously year X% delivered price the acquisition, one know, of margin, had growth year growth Sean you X, investments last because increase increase, a of back a took I volumes top Hardie for position we're are to EBIT strong XX% customers continue drive XX% with to America for a to with price XX.X% That American XX% innovation. to for

Operator

XX:XX Thank you.

Please from comes next question from Steyn Your Macquarie. Peter ahead. go

Peter Steyn

evening, gents. slightly in for interplay full your texture as time, to of foresee of of on of of on environment. realization side your Do headwinds shown ColorPlus Thanks that more things? the the do strategic you relation the some of market? the the well the to growth lot you tactics Obviously to intentions with penetration ask some much question was prep in as developments affordability panel Good How some keen very on the market XX:XX a just see on front. a chatter these

Harold Wiens

think a don’t a I do XX:XX proceed – for got don’t Peter, new we've learning to No, amount us. I process work I products, of fair

from to noise our we quite focusing repairing they continue very get pent we've a do with robustly believe a less of labor commitment for are they'll builders. and obviously, that up that assuming they through year, what about strong demand remodel I We is we're hearing, on and to sensitive we next their year. work their the feel can materials, we suspect segments, seen will, lot believe is which obviously but

Jason Miele

comments, job and segments. We very high. great I'd to It's he going in plan on been described repair page Homeowner stronger all-time have Sean's North XX. focused on penetrate we're on an as how remodel And strong. market game we We're buy wealth did on add multiple never to that. seeking America. do XX:XX think [Indiscernible] and plan, someone is game has and so loan impact think to new I versus sources. Repair Sean scenario those Remodel we good a a thought We we have penetrated, explaining different track home. a home Very external the equity the

are for market of fiscal a ’XX. year our All them strong calling in R&R

Peter Steyn

How you chain the that XX:XX extra is Thanks, a architectural the to extensions, much very supply question around complexity? like overcomplicated have risk number extend just of you Jason, the a with briefly with ColorPlus ago? better is panel there deal had range chains to supply positioned years

Jason Miele

we strategic a moving offer to to product is the on is limited have partners sort which since material general Peter. them on complex our low? One you so customer when after, ask worked but really prime to start start, to over capital full That’s key been a look good so or most XX:XX tell with the are you I'll parenting Yeah, is model ground, in go me we then will and to get of working last of with me couple months of our that carrying want some then inventory is, hard Coast we innovative pretty less the engine question. the materials at working get you in [Indiscernible] Do have be things. really to want where the partners as West you we've part. XX the

Operator

XX:XX Thank you.

question comes Morgan next Andrew go Please Your from Scott from ahead. Stanley.

Andrew Scott

XX:XX you've clear, start of classic by a cash to as call want XX% Thanks, the And just we Or gents, i.e. might what there. flow after operating thanks important Jason, to the to the definition? with the XX% to with is AICF. be reference update cash milestone question the flow, for you for I made when is that operating referenced the that operating cash AFFA prior payment? flow

Jason Miele

is of XX:XX Classic GAAP. US Andrew. definition, it's based one off The caveat XXXX

in outlined well. So we've ultimately is. minor there's our as that appendix what page the cash the number that adjustments But some operating between flow detail stated and in

So roughly operating cash it's US our flow.

Andrew Scott

in XX:XX giving was then was here much XX you a much integration divergence spoken customers your so I months obviously, improved. secondly, Got out, also Thank visibility improved. this and January, was with And your therefore your said know you. guidance it? about what And

is businesses, insights, North fact committed much dime a American guarding what can given particularly you're are to understand Just on customers that for with the the versus just market of rates how times? rising, at just turn want

Harold Wiens

also bit the bring a will which working to XX:XX commitments our got got what little from to enter, in orders they And customers business. as with future both it’s our determine back customers. of we've Yeah, we've we forward we

we So again. can

very So commitments end with work we then and that then, tying And what we've the telling confident future. we right. team that users the strong all feel working together, as they are very, got in and our us fairly without see through them, numbers

Operator

XX:XX Thank you.

Keith Your Please from go Chau Marquee. from ahead. next question MST comes

Keith Chau

very Thanks XX:XX Good gents. evening, much.

to up Sean. Just question, a follow Andrews

sight. of In of line of duration terms

costs the back second locked six of you how forward much I the your half the the same FYXX half can what the and on cost split what can say versus we of of in the So to second also if year half? customers Would and out then a costs, it's months first the estimation the is volumes, and general backlog based you're just order for in visibility. locked the of first from for broadly see about But base we around discussion is or in and get? year know, clearing your going spoke January, revenue least you of at revenue

Sean Gadd

a backlog I'll describe have been of certainly Yeah, Keith, tell it. committed. XX:XX not it's as have as orders you we clear you that just But

to of that with robust end think where our tell customers the to going for on customers and pretty some business, to and they're future, would need what unlock. understand All the the be model are XX% still future preparing working I quite is us our users the XX% that's all bullish time. We being of the our through as market

good it. about we feel So will

as say us. what that. and good point, quite about months, what orders months feel with been into communicated XX as good some at really we've six coming But up Now you are we

Jason Miele

I much better homes is to on mean, construction a this to. side-lines XX:XX Yeah, used still we are happen? mean, we it's are many dependent question, middle forecast. to year. new Obviously, than many going going Just homeowners [Indiscernible] their this how have remodel of I starts How

our customers. great have partnerships We with

new of market. year. within a the a of currently looking through So have but indicates uncompleted we're commitments, market we construction backlogs and not we full A new lot well. and space strong R&R the data strong But There's construction as do a at lot all homes. the

today. revenue So guidance XX% that for XX% confident to gave feel in we we very

Keith Chau

XX:XX just Understood. you the Thank side contracted cost in a terms follow and on question of your costs. then up

can useful you If the SG&A know That that and as the and you in can are how assumptions you would just past, then indicators run through give Jason are around the moving. provided Sean the a what that please LEAN, you've reinvestment, be if sense well. typical Thank costs us of you.

Jason Miele

mean, the XX:XX guidance past bring Yeah, LEAN, in gives I point. our LEAN, getting a LEAN sooner. confidence more several the you Yeah, fair up good enough, and initiative started is over we Keith. with ability years, us

FYXX, historically, far inflation is caused are think the space. starts as and our million goes, that be of in in reduced, material raw our FYXX, P&L A$XXX more A$XX versus LEAN million there as costs, within year, last around variability We here. and globally we don't it A$XXX so with to network somewhere variability the But range this FYXX that that uncertainties So to though, within built our we have into year, so we which inflation see about used and that's talked costs. year-on-year plant something A$XX million million inflationary so

invest we And se. and see So a much and to can SG&A SG&A, per describe comp as you in R&D. better will continue

in continue this and have talent strongly we growth. we continue marketing, innovation as drive invest year, to to as will So

Operator

Thank XX:XX you.

from from Suisse. Credit Your ahead. Peter comes go Please Wilson next question

Peter Wilson

potential an for where rollout on going Sean, just collection, you morning. that volume, you plan. you're, North customs expected and also allocation, question manage are it's and you now, update into give this to we still Can where how could weave whether a American some answer, you me please. that? Good XX:XX Yeah, capacity and

Sean Gadd

impact sure understand doesn't they're then time. we perspective, our end right where and and we're our they're degree customers but doesn't to because to in their an to all customers allocation, the them, think got needed to that with as working the continues, we From day some Peter. you needed, every gets it make obviously you throughout adjust – thank user that Yeah, that usage, [Indiscernible] when it the have really XX:XX

flow better is than our So tremendously ever been. it's

terms how of together being which but ramp closely the In with sure making obviously, under are – with performing, tracked that Ryan obviously with capacity, are there control, plants new of capacity, on the and also cells working up. my

between to start-up, do the two, has now the which there, bought we and and the been of So what get still for growth. Collection. we to year out help question year and some would inside from end or that around growing. and the some XX:XX on us in eventually into a final then to us needed. work side got roll one market then the more perhaps we the development allow perspective next look really of delivered the capacity got of where got And west We've get terms We've Architectural

that's marketplace. our think the get coming focus will be managing it I mix of we as out in and right made gets now which and we sort from momentum our

Peter Wilson

you good. in quarter? perhaps, you. be costs, was explain able once one contained you Thank Okay, And can so Europe XX:XX to just energy how the that

Sean Gadd

you Peter, being do Sorry, XX:XX contained? by mean what

Peter Wilson

far the is for [Indiscernible]? to As European returned XX:XX advisors as guidance

Sean Gadd

at will European the we margin January increase some take yeah, that which X, understand, think And, QX. team hyperinflation, Yeah. costs generate significant we okay. help going forward, did European we're better price a experiencing Oh, abates point. still XX:XX heater, on a energy do including But

Operator

XX:XX Thank you.

Please go question ahead. from comes from Kang Daniel Your next CLSA.

Daniel Kang

everyone. Good XX:XX morning,

top to that the you very high-end up I range? I confidence quite just high-end with confirm expectation. the of the and just may clear end of Can see guidance guess guidance other variable Just key range? from responses low on for Any raw regard questions your materials as low terms prior of FYXX. line follow a that the the variables quick impact in Jason, the the

Jason Miele

obviously can Daniel, year significantly, Yeah, swing quarter obviously. volume a or volume always, XX:XX is

to much of be. price while it create used raw to narrow plant more band So assumptions, range mix material Sean And then XX%. performance, than that's, costs, volume gave you X% and range a ultimately then it's a a

control. for on when All developing and we page. in put potential outcomes. variation consider of potential do feel three confident that all we range of there the some that have There's we all guidance the of that points We said, under

Daniel Kang

on Got your an Do Got it. I it impact XXX your see Sean, just demand, a in work that R&R rates rates issue? comment that does what unlikely Fed aggressively. raise XX:XX with a, an issue? become basis becoming to point, it. rising And, points, At interested and more will you forecast was

Sean Gadd

from only my the to perspective, put is payments it high, it money recites I issue potential in think and I was large XX:XX equity doesn't. ever is the is the all-time consumer households deter confidence in how at going US said it not to $XX,XXX Their enough home. remarkable much be and

months. three, homes I there's see not so at said enough are least homes So I the and opportunity and moving buy now do four don't see a pre-robust, new out inventory and for this next the us point, it's to of people for at being go

Operator

you. Thank XX:XX

Thackray Simon ahead. question from go Your from Please Jeffries. comes next

Simon Thackray

XX:XX Thanks very much.

was, smaller whether it couple we the shift overall we if high just them it left explained tactically, together. get commodity learn But a strategically you board that Just mix now, guidance which never leaving towards component to the identifying, mix. because products capabilities becomes want and commodity is that competitors all leave Cement used are the would case, Sean I terrific. them of The much the in in questions. would Fiber a moved is they to I you're I and mean, way which to it be the in to the of it to board understand value

don't be the how of capabilities to on brands? that that capability some what's audio? to capacity clear, just commitment ongoing to develop fighting to what's and ensure And So these take what the have view competitors

Sean Gadd

good. Yes, XX:XX mean, it's I

partner going we noticed They're product the completely, The America to of is turn will point at portfolio. still important view, part I'm not homes, partner have their jobsite only though, and is We’re that built builders they long-term the been what look, our like brand North which left when the afraid what basically they skews, you'd the skews directly – from that drifted and meant brand it. product of the delivered of product mean, it. states largest of also originally in to exactly market long-term when have our eliminating brand reset future do. increased, review mix, you pointed for the have do is that a certainly we point, two on it we're important items so to we and our product. that they their I'm view, sampling expectations we skews it I'm deliberately lots about take not we need role and if like not and leads think future sure segments that And number it so. share when I has for two when to which have we get reason We know of into to in wound in your meant an plays What's

to And needed both users we to customer through it. end need understand there. to capability get get our they when we're from able the homes our Now have which

outsource next. So opportunity or as start competitors get then other and but as future where consider future, pointed we think today, there's and about for and to we capacity, to demand in, not in the capacity, maybe that's we'll

and so have time for haven't to exactly what go, we go. learn I to allow about that but And needs pinpoint to I feel the now eliminated much very are better we us these where reason. it capabilities will

Simon Thackray

Yeah. XX:XX

Okay.

consistent terms strategy, So historical the in still, still in terms of protection. of still,

altogether? terms Hardie short, over just in Architectural time of will rid of other the the etc. Fiber I range, seen understand, Collection, pedal, quickly to those actually just some this it So on the display panels get Cement replace we've the sky structural Does those the just like replace New of trying is that

Sean Gadd

not very reason Australian will open you started west brand, but honestly category. that’s on to from we that [Indiscernible] sure, US the the new as I has a make change, XX:XX we've for coast up perspective, so really the to tell

We existing lines. are trying to on capitalise

it's do – will good said after be to to in that May. that go we us But purpose accessible it and it. for XX% be an Now, wasn't opportunity our to there’ll do as other we still the financials our is

get into And so can these today. exist Sea step obviously, you see and, to are designs able don't the these, more designs Grass, we're first that with

where okay, one different deliver competitors, going of are we we a puts to a look. one, to So very our which a great It's anybody, place us can in spot.

[Indiscernible]. a, not we that guess, I category a So new as necessarily quite more and see as

Jason Miele

piece. other on cover Yes, off XX:XX the I'll

you Collection we panels So today, Woodloch, in see Woodloch. the made panels are this the Architectural non deliver

non end that As delivered. non have So people four of that exciting they when it's penetrate them And the vary us delivering within XX% are utilizing mentioned, we've market. it's see textures different. will we helping but so How Woodloch. the Sean you North about think focus we Woodlochs up the That there on is and America, is can region,

Operator

Thank you. XX:XX

next comes from Your City, Seow go question ahead. Sam from please

Sam Seow

visits etc. quarters, XX:XX in to I have Great website seems able the our can't out. price well to seen, look be months. and mix when few Hi And add guys. before couple [Indiscernible] picking kind of it brand was started outcome, TV CME of a consume improvement back, past over guess the Even but started today and I the recently

Just ask not whether else as should this really wanted the mix the in result much is results flow the Christine and to same quarters program in future or profit how Christine periods? only something actually through and really whether,

Sean Gadd

impact guess definitely are from campaign. I I perspective, of an marketing seeing my think we XX:XX our

I the is new me reality you think do construction. can't when that I marketplace, backlog contracts like If will on also into that. We're to just size a I working that. the how ask get the have do it,

four backlog. month got a we've about So

that to we've had jobs the So I year. going lot on year. of that impact into But we're impact the a suspect far and so double next do next down will

really obviously, the market to So, directly consumer. to continue

us. continue work going with to guys come of the we're the at really to to partnership that's father to out ready color accelerant demand. then how yes on, going long a Demand contract access contractors You acknowledge work is that's dropping control really I that. get and going – would installed? for being [Indiscernible] to question cement, take then between then over kind is the have it but to like, our yes, and of and that are basically customers ease where be signed focus being to no say who And But to

Sam Seow

board when percent Europe, guess XX:XX sell shouldn't it think appears I about factor obviously, I in period. we read? from margin where bought the I basically adding think sell Cool, this in results cool, guess US I you're segment know cool. of how that And to only can that instead but do environment small, and it's choosing you forward? looking of we kind everything to that

Sean Gadd

years from for that now, continue a put North in Fiber right plans capacity, we We Sam, strategic product with continue it to the €XXX we that execute here's we American Yeah, to of to going will Fiber and we through XX:XX growth. to million want Cement to continue ocean we're growth and us. of are a want until deliver ensure Cement, said time, the starting Europe we'll Europe, Europe. million to will XX we we €XXX Europe, ship across to the and path of on that's X% Gypsum Fiber focus penetrate

it globally, the and in create Hardie. we So opportunity, commitment significant growing ensuring a the we're company, team. Fiber Europe they're Western we homes. global to X% that those of Europe, if That have business, think a big as full a as there's James for we right significant big a global conversations Cement number But business population global about can win

Operator

XX:XX Thank you.

next Your Please RBC Capital question from go Quinn comes from Paul Markets. ahead.

Paul Quinn

a thanks lot. Yeah, XX:XX

her I'm to margin wondering to looks then on ’XX and XX% looking just and the the Just uplift there some innovation? going the going it ColorPlus to in a XX% here. slide at ’XX describe and XX fiscal look XX% your a and year if ballpark question is if exterior XX%, ColorPlus could you scale, plank I'm from then if like to ColorPlus from between right, Take is

Sean Gadd

the value is right, not roughly few of though, quick make the as real roughly all represents products Paul, right. others. blank percentage But products, just Yeah, XX:XX of a But sure boards backer a is bar which your our includes are and gray products. well, and on gray just the include backerboard, a left few bar low that percentages your other

further that's price the what margin we As for into far ColorPlus, products, the and level, group. would the at the what seeing up between product you're deliver we a get points higher on some us our those of don't various specific see innovation margins year, to next in and XX% push help by as XX% as margins guidance you there

Paul Quinn

XX:XX Alrighty, I that's all had.

Sean Gadd

XX:XX Thanks, Paul.

Operator

you. Thank XX:XX

Anderson go Your Please from question comes from Jarden ahead. in Chow Australia. next

Anderson Chow

for my just North questions XX:XX business. I American Yeah, a have couple taking you much on very question. thank

XX% of higher Architectural side, you of Are are war kind about to comment cost probably how plus the What cost are talking for hence, comparison, is, starting the you and Collection, raw and to in also marketing. new new see stabilize? of have with kind (ph) are one able say kind of on the product? So partnership? to the the that on Thanks. we first of much able quarter? the previous contributed say lot SG&A XXXX We also The you on a the regards that the about to it with, to to to that we just in talked about clarify sort material EBIT have, questions, the inflation just StuCo may margin anything I on want

Harold Wiens

this of to I'll I'm first over XX:XX Jason. probably, take it probably and the part hand that

So from war know the business I like and is talked would at is, has pretty that critical. it think like that to One costs all up about. on going the becomes about I two look only about think and our perspective, vinyl I'd guess, he about we on when historically, plank cost war been products things point, him Hardie

little also is labor. going to this We're labor, to labor stone, up For bit intensive. breaking very we're of the shortage intensive, again, start different. One, up labor going over

I about think and – world So less the more about unless I time costs I thinking do spend design.

about she consumer, likes to design, likes and required. as a So She's what's think pay the willing she color. to we

So very it's us. for different just a thought

realize you bias we I'm about price not voting on we in [Indiscernible] construction. nearly We're going As up XXX. this about critique and is design, to think the obviously not about more she's as that more as more sensitive go

segment when this go cost So, is on out [Indiscernible]? In significant? what we to our

Jason Miele

raw we think, had yes. materials mean, In FYXX to I we have million significant $XXX in more you circa a use are and Yeah, I XX:XX XX. also versus is, in, FYXX. versus about lot headwinds, inflation they stabilization FYXX FYXX live FY FYXX, than in way a $XXX

significant, in three all we very margins to are was able that regions. and deliver So still strong

year, the this FYXX, we near to inflationary expect some into pressures, Going still but same extent. nowhere

Anderson Chow

XX:XX Okay. Thank you.

Jason Miele

that have had XX:XX any in announced on provided not guidance You today however, marketing be What today. got would our would impact QX, our another we around forecast we costs? question

Anderson Chow

XX:XX Right, okay. Got it. Thank you.

Jason Miele

XX:XX Thanks, Anderson.

Operator

XX:XX Thank you.

comes from go Campbell-Crawford [Indiscernible]. next Brooke ahead. from Your question Please

Unidentified Analyst

XX:XX Yeah, hi.

relevant question target XX% be if a you've Just North division to the to XX% to what wondering luxury still for and FYXX, get margin around is us America scenario XX% range just given XX% to in would that XX%? XX%

Harold Wiens

certainly, But was the year long-term The increase change to the XX% is XX% one-year for to won't guidance XX:XX an to specific see and going into within would XX% FYXX long-term conditions FYXX, And a for Yeah, year, etc. period, XX% XX% ’XX. very we change this take XX% but XX% it market be FYXX. range we we're used more persist how Depending what ranges, to competent and things that to fiscal on Brooke, to range. to than for one with long-term XX%.

take into So as consideration it we'll into get deeper FYXX. we

Unidentified Analyst

Thanks. Okay. XX:XX

Operator

our for closing Jason questions. Miele remarks. That Thank to you. time for I back now hand does XX:XX conclude

Jason Miele

XX:XX thank for Great, to us everyone thank you. We'd joining like today.

you have seeing entire there and to forward and our to would you We results For those showing strategy makes execute employees every look leadership possible. our finally, day, all new Orlando products Thank of team to XXXX the which like our of week. you. exciting thank IVs who in continue these you this

Operator

conference participating. XX:XX you for today. Thank does That you. our Thank for conclude

now You may disconnect.