EX-99.3 4 marshfinal.htm EXHIBIT 99.3
EXTERNAL ENVIRONMENT & BUSINESS FUNDAMENTALS Matthew Marsh, EVP & CFO Exhibit 99.3

PAGE 2 AGENDA • U.S. Economic Conditions • Housing Environment • North America Capacity

PAGE 3 KEY ECONOMIC INDICATORS STABLE GDP Growth Source: Bureau of Economic Analysis S&P Index Source: Yahoo! Finance GDP remains 2-3%. Market strong.

PAGE 4 KEY ECONOMIC INDICATORS STABLE Crude Oil USD$/Barrel Consumer Confidence Index Source: World Bank Oil prices stable. Continued strength in consumer confidence. Source: OECD

PAGE 5 KEY ECONOMIC INDICATORS STABLE U.S. Unemployment Rate Average Hourly Wage Source: Bureau of Labor Statistics Source: Bureau of Labor Statistics U.S. returned to near full employment. Wage growth in line with inflation.

PAGE 6 POLITICAL ENVIRONMENT ( + ) Corporate Tax Reform ↔ Infrastructure Bill ↔ NAFTA ↔ Mortgage Interest Deduction ↔ Healthcare ( - ) Immigration Policy / DACA

PAGE 7 U.S. NATURAL DISASTERS • Hurricanes Harvey and Irma marked the first time two Atlantic Category 4 hurricanes have made U.S. landfall in the same year. • Comparatively, Sandy (‘12) and Katrina (‘05) made landfall as Category 3s. • Hurricane impacted area represents ~15% of JH NA volume. • Plant City manufacturing operations were halted in anticipation of Hurricane Irma.

PAGE 8 SOLID CONFIDENCE & INVESTMENT IN HOUSING Residential Fixed Investment as % of GDP Source: Federal Reserve Economic Data, Federal Reserve Bank of St. Louis Real Estate Confidence Index Source: National Association of Realtors, Realtors Confidence Survey, June 2017 2008 2017

PAGE 9 GROWTH OF NEW HOUSING CONTINUES Housing Permits Source: U.S. Census Bureau

PAGE 10 GROWTH ACROSS NEW CONSTRUCTION SEGMENTS Housing Starts by Segment Thousands of Starts Positive growth in all segments. Single-family continues to outpace multi-family. Source: U.S. Census Bureau

PAGE 11 DEMAND EXCEEDING SUPPLY Source: Core Logic Case-Schiller Home Price Index U.S. Housing Supply # Months Supply Case-Shiller Home Price Index Supply remains tight. Prices continue to escalate. Source: Federal Reserve Economic Data, Federal Reserve Bank of St. Louis

PAGE 12 NEW OCCUPANT POPULATION EXISTS U.S. Population by Age Young Adults, 18-34, Living at Home Source: U.S. Census, American Community Survey Source: U.S. Census New residence eligible population living at home

PAGE 13 AFFORDABILITY REMAINS SIGNIFICANT HEADWIND Source: Urban Institute, CoreLogic, eMBS, HMDA, SIFMA Outstanding Credit & Student Loan Debt Borrower FICO Score at Origination Student debt continues to rise. Financing eligibility remains elevated. Source: Federal Reserve Economic Data

PAGE 14 AVAILABILITY OF LABOR CONTINUED CONCERN Source: NAHB % Builders Reporting Labor Shortages 2016

PAGE 15 REPAIR & REMODEL REMAINS STABLE GROWTH SEGMENT Source: U.S. Census Bureau, American Housing Survey Source: Hanley Wood Repair & remodel projects continue to grow at ~5% annually Average Age = 41 Years Repair & Remodel Project Growth Age of Housing Stock

PAGE 16 HISTORIC MARKET SHARE Present Future 100% JH wins against wood-look alternatives

PAGE 17 DEMAND TO DETERMINE FUTURE CAPACITY Future capacity decisions based on: - Geographic demand - Location - Product mix - Optimal delivered unit cost - Materials sourcing - Efficient freight - Skilled labor availability Peru, IL Pulaski, VA Summerville, SC Plant City, FL Prattville, AL Waxahachie, TX Cleburne, TX Fontana, CA Reno, NV Tacoma, WA

PAGE 18 HISTORIC & FUTURE CAPACITY UTILIZATION Current gross hours utilization ~94% FY09 FY11 FY13 FY15 FY17 FY19 FY21 • Protect 20% growth • 85% utilization trigger • Capacity adds to keep supply ahead of demand 100%

PAGE 19 TACOMA, WASHINGTON • Currently under construction • Expected commissioning Q1 FY19 • Nameplate capacity - 300 mmsqft/year • Plank, Backer, Heritage, ColorPlus® Technology • ~130 employees at full production • Site benefits • Low input cost • Proximity to growing markets

PAGE 20 PRATTVILLE, ALABAMA GREENFIELD • Anticipate ground breaking Q3 FY18 • Expected commissioning Q1 FY20 • Minimum nameplate capacity – 600 mmsqft/year • Plan for diverse product capability • Plank, Trim, Backer, Heritage, ColorPlus® Technology • ~200 – 275 employees at full production • Site benefits • Low input cost • Skilled manufacturing workforce • Proximity to growing markets • Rail accessibility

PAGE 21 KEY MESSAGES • U.S. economy strong • Housing recovery slow but steady • Capacity in place to support growth