EX-99.2 3 ex992annualreview.htm EXHIBIT 99.2
Exhibit 99.2 BUILT FOR GROWTH 2018 ANNUAL REVIEW

RESULTS AT A GLANCE ADJUSTED NET NET SALES ADJUSTED EBIT (2) ADJUSTED DILUTED OPERATING (US$Million) (US$Million) EARNINGS PER SHARE (1) PROFIT (1) (US$Million) (US cents) $291M $2,055M $398M 66cents 66 291 398 2,055 1,922 351 354 56 249 54 243 1,728 50 1,657 221 304 44 1,494 197 253 1,321 32 141 181 13 14 15 16 17 18 13 14 15 16 17 18 13 14 15 16 17 18 13 14 15 16 17 18 TOTAL US EBIT DIVIDENDS PAID ADJUSTED RETURN SHAREHOLDER MARGIN (2) PER SHARE ON CAPITAL RETURN (%) (%) (US cents) EMPLOYED (2) (%) 12% 24% 40cents 32% 26 88 32 48 31 31 24 29 23 22 21 24 35 17 55 17 45 43 22 40 40 18 15 12 13 14 15 16 17 18 13 14 15 16 17 18 13 14 15 16 17 18 13 14 15 16 17 18 Please refer to the inside back cover for full footnote references. b

JAMES HARDIE IS A GROWTH COMPANY. We are aggressively driving market demand for fibre cement products across all our businesses and geographies in which we operate, while actively pursuing future growth opportunities, to deliver unique returns and create long-term shareholder value. JAMES HARDIE /  BUILT FOR GROWTH 1

OPERATIONS OVERVIEW In fiscal year 2018 we created considerable value for our investors, customers, employees and the communities where we do business. Our substantial investment in our people, plants and market development programs, has enabled James Hardie to maintain its position as a leader in the building materials industry and drive future growth opportunities and superior long-term returns. NET SALES EBIT (2) EMPLOYEES CAPEX SPEND (US$Million) (US$Million) (#) (US$Million) 3,709 $201.7M 1,050 $2,040 $490 943 893 874 839 807 2,659 2,390 2,095 2,048 1,915 1,681 $1,578M $382M $462M $108M 13 14 15 16 17 18 13 14 15 16 17 18 NORTH AMERICA FIBRE CEMENT NET SALES SALES VOLUME AVERAGE NET SALES PRICE US$1,578M 2,239mmsf US$698 per msf u 6% from 2017 u 1% from 2017 u 5% from 2017 GROSS PROFIT EBIT (2) EMPLOYEES u 8% from 2017 GROSS MARGIN US$382M 2,659 u 0.6PP from 2017 u 11% from 2017 u 11% from 2017 2

KEY North America  International Research & Development Manufacturing Facilities INTERNATIONAL FIBRE CEMENT NET SALES SALES VOLUME AVERAGE NET SALES PRICE US$462M 529mmsf US$774 per msf u 12% from 2017 u 9% from 2017 Flat from 2017 GROSS PROFIT EBIT (2) EMPLOYEES u 12% from 2017 GROSS MARGIN US$108M 1,050 t 0.2PP from 2017 u 14% from 2017 u 11% from 2017 3

CHAIRMAN’S REPORT James Hardie has made by 1.2 percentage points. Our North manufacturing network for the future, America segment experienced capacity including the start-up of our Summerville significant strides in constraints in fiscal year 2017 which (South Carolina) plant and the continued dampened demand in fiscal year 2018. construction of a greenfield expansion building a stronger Despite this challenge our exterior volume project on land adjacent to our existing foundation to deliver growth improved each quarter throughout Tacoma (Washington) plant. We also the fiscal year. We exited fiscal year 2018 announced our plans to build a new future growth. Our with growth at our market index rate, and manufacturing plant in Prattville (Alabama). on track to return to primary demand fiscal year 2018 was In our International segment, we added growth in our targeted range by the end capacity in the Philippines, and we have of fiscal year 2019. During the year we highlighted by solving committed to a brownfield expansion made significant investments in capacity project at our Carole Park (Australia) plant. a series of challenges resulting in a substantial increase in our and delivering a strong manufacturing capacity. Additionally, We have continued to make significant we progressively improved the performance investment in our people and organisational financial result. of our North America manufacturing capability, including expanding the breadth network. The EBIT margin was 24% and and depth of our already strong global returned towards the top of our target management team. Zean Nielsen joined We have made sound progress on range of 20‑25%, with steady improvement us as our Executive Vice President of Sales improving our manufacturing capacity as the fiscal year progressed. in August 2017 bringing with him over 20 and performance and positioning our years of experience in sales and marketing management team for the future. We also The International segment delivered strong from his time with Bang and Olufsen and made progress on driving our proven results during fiscal year 2018. Net sales Tesla Motors. Additionally, Dave Merkley growth strategy, and we substantially increased 12% due to strong volume rejoined James Hardie in October 2016 invested in our people, plants and market growth in our Asia Pacific business and and was promoted to Executive Vice development programs. As a result, we are EBIT increased 14%, driven by a very strong President, Manufacturing and Engineering strongly positioned to continue to deliver performance in our Australian business. in November 2017. Dave was previously quality earnings and create long-term Investing in building capability to drive employed by us from 1994 until 2006 and shareholder value. long-term organic growth remains a top brings 30 years of industry experience and Our North America segment achieved 6% priority. During fiscal year 2018 we allocated the unique set of skills required to oversee top line growth and EBIT margin improved capital to position our North America our manufacturing operations and capacity 4

expansion. Finally, Jack Truong joined us in the year we added two new directors who April 2017 as President of our International bring strong business experience and business bringing with him over 30 years valuable perspective to James Hardie. of business experience from his previous Persio Lisboa was appointed to the senior leadership roles at Electrolux and James Hardie Board on 2 February 2018. 3M Company. Persio will stand for election at the 2018 FERMACELL ACQUISITION Annual General Meeting (AGM). Persio has extensive senior executive experience and In April 2018 we completed the strategic brings significant operating and international NET SALES acquisition of Fermacell GmbH, Europe’s expertise to the Board. (US$Million) leading manufacturer of fibre gypsum boards. The acquisition represents Steven Simms was appointed to the James a significant milestone in growing our Hardie Board on 14 May 2017. Steven was US$2,055M business beyond our existing products elected at the 2017 AGM and has extensive senior executive experience at leading and geographies. Fermacell has a strong u 7% from 2017 European footprint and is a high quality global corporations. business which shares our philosophy On 21 August 2017 the Board and I were of driving a differentiated market position very sad to acknowledge the passing as the result of a premium fibre gypsum of James Osborne, who was appointed product. Fermacell has strong brands that as an independent non-executive director NET CASH FROM OPERATING stand for quality and a substantial market of James Hardie in March 2009. James ACTIVITIES (US$Million) position that generates consistent positive was an experienced company director cash flows. with a strong legal background and We are excited to start realising the benefits a considerable knowledge of international of this strategic acquisition as it represents business operations in North America and $295M Europe. The Board and I were very fortunate a major step forward in developing u 1% from 2017 a meaningful position for James Hardie to benefit from his valuable contribution in Europe and a stronger platform for future to the success of James Hardie for close fibre cement growth in the region, which to a decade and his insights, candour and has long been a strategic goal. quick wit are missed by all of us. I would also like to welcome our more ASBESTOS INJURIES ADJUSTED NET OPERATING (1) than 800 new Fermacell employees COMPENSATION FUND (AICF) PROFIT (US$Million) to the James Hardie group. Due to our strong financial performance CAPITAL ALLOCATION AND during fiscal year 2018, we will contribute SHAREHOLDER RETURNS approximately US$103.0 million to the AICF $291M in July 2018. This amount represents 35% We remain committed to investing in of our free cash flow for fiscal year 2018 u 17% from 2017 organic growth, maintaining our ordinary which we are obliged to contribute as part dividend, and having the capacity for of our commitment under the Amended strategic opportunities or additional and Restated Final Funding Agreement. shareholder returns while maintaining a strong balance sheet. Including this contribution, we have provided over A$1.4 billion towards asbestos disease TOTAL SHAREHOLDER RETURN (%) Our underlying confidence in the strength related compensation and medical research of our businesses and the geographies and education since 2001. in which they operate enabled the Board to declare a first half ordinary dividend of ANNUAL GENERAL MEETING 12% US10.0 cents and a second half ordinary This year’s AGM will be held on Friday dividend of US30.0 cents. 10 August 2018 in Dublin, Ireland. t 6pp from 2017 The resulting full year ordinary dividend Shareholders can participate via declared of US$178.7 million, reflecting a teleconference. Details regarding the a payment of US40.0 cents per security, matters to be acted upon at the 2018 AGM was in-line with the full year ordinary will be contained in the Notice of Meeting dividend declared and paid for fiscal and related materials. year 2017 of US$177.9 million, reflecting a payment of US38.0 cents per security. The ordinary dividend represents our commitment to provide shareholder returns within the ordinary dividend payout ratio Michael Hammes of 50% to 70% of net operating profit, Chairman 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 independent Board. During 5

CEO’S REPORT During fiscal year momentum and our exteriors volume grew driven by unfavourable plant performance and in-line with our market index. As a result, for higher employment and freight costs. The 2018 we solved the full year 2018, our volume growth was well Philippines business delivered strong volume a series of challenges below our expectations and we did not increase growth in fiscal year 2018, as we successfully primary demand growth. won back volumes from competitor imports in the Philippines market. and significantly For the management team and myself, growing strengthened above our market index and increasing primary OUTLOOK the company for demand growth remains one of our most important priorities. First, we are no longer We expect the steady market growth in the future growth. capacity constrained and are in free supply, US housing market to continue into fiscal year as a result of our capacity additions which 2019. The single family new construction market added approximately 1 billion MSF of capacity and repair and remodel market are expected Operating earnings for fiscal year 2018 were during the past two fiscal years. Second, our to grow similarly to the year‑on‑year growth solid with strong revenue growth and cash commercial efforts are focused on winning experienced in fiscal year 2018. We expect our generation, lifted by good performances in back lost customers due to our capacity issues North America segment sales volume growth to both our North American and International and we are making good traction on re-earning outpace overall market growth and our EBIT segments. Highlights include revenue their business. Third, we are again focused on margin to be in our stated target range of increasing by 7%, adjusted net operating profit driving sustainable demand growth and driving 20-25%. This expectation is based upon increasing by 17% and total shareholder return market penetration against vinyl and hardboard the company continuing to achieve strong remaining strong at 12%. alternatives. Finally, we are continuing to invest operating performance in our plants, stable In North America, revenue increased primarily in our commercial organisation to ensure our exchange rates and a moderate inflationary due to a higher average net sales price and people, processes and technology make trend for input costs. James Hardie an easier company for our slightly higher volumes. Our North America Net sales from the Australian business are customers to do business with. segment EBIT margin was strong at 24% and expected to trend in-line with the average was toward the top end of our target range The Australian business delivered strong growth of the domestic repair and remodel of 20-25%. Our North America segment volume growth and increased market and single detached housing markets in experienced a capacity constraint in fiscal 2017 penetration. Favourable conditions in the the eastern states of Australia. Similarly, and the first half of fiscal year 2018 that impacted domestic repair and remodel and single the New Zealand business is expected to volume growth and margin performance in the detached housing markets in the Eastern deliver higher sales volumes supported by first half of the year. In the first half of fiscal year States of Australia contributed to this high growth in residential markets in the North 2018 exterior volume growth was below our quality result. The New Zealand business Island. Our Philippines business is expected expectations and lower than market growth. contributed increased net sales and volumes to deliver record volume growth, albeit at a In the second half of the year we began to build offset by higher production costs, primarily slower rate than in fiscal year 2018. 6

STRATEGIC PILLARS 2018 PROGRESS Our ability to drive profitable growth and deliver superior returns continues to be underpinned by four strategic pillars. The four pillars provide a strategic framework to invest in our people, market position, industry leading brand, and new strategic opportunities driving growth for the next decade. PEOPLE MARKET POSITION We are improving our organisational capability by: We are aiming to grow our market share in all our businesses and geographies by: §§ Ensuring safety is at the forefront; as we pursue a zero harm culture §§ Growing fibre cement as a valuable substitute §§ Developing and promoting our people for wood and vinyl siding and trim in the new construction, repair and remodel and §§ Attracting top external talent multifamily segments §§ Embracing a culture of engagement §§ Maintaining our fibre cement category position by delivering differentiated value across all points of the supply chain through to the home owner §§ Driving an increase in our share of the rigid backer board market, while extending our BRAND PROMISE presence in the underlayment market to non-fiber cement categories and adjacent accessories We are delivering differentiated products and §§ Developing an international growth strategy services by: beyond our current business, including new geographies and new products and segments. §§ An unrivalled commitment to research The strategic acquisition of Fermacell provides and development a broad European footprint and capabilities §§ Maintaining our manufacturing advantage which offer the right platform to accelerate our §§ Delivering industry leading quality and fibre cement business growth in Europe and service levels also diversifies our geographic, product and §§ Investing globally in future manufacturing end‑market portfolio capability and capacity §§ Utilising a segmented approach to brand §§ Leveraging technology to better improve positioning and strategic pricing the customer experience NON-FIBRE CEMENT SUMMARY We will continue to explore opportunities for growth James Hardie is a company built for beyond our existing fibre cement business by: growth and we continue to improve §§ Realising the future growth opportunities our capabilities. As we deliver on our of Fermacell’s fibre gypsum business in Europe four strategic pillars we are confident §§ Investing in fibreglass protrusion technology and in driving growth for the next decade our existing fibreglass window frame business while delivering superior returns. §§ Prioritising early stage technology where our existing core competencies around product innovation, process improvement and market development can add value 7

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REVIEW SUSTAINABILITY PRACTICES The foundation of James Hardie’s sustainability initiative infrastructural upgrade as well which will result in starts with our innovative products which have an extended improved energy efficiency across the region. lifespan that require minimal maintenance and can be used A highlight of our waste minimisation efforts over the in energy efficient buildings. These incorporate product past year was our Reno, Nevada manufacturing facility’s design, manufacturing processes and logistics resulting in partnership with a local mining company to secure a holistic approach toward sustainability. the environmental permits necessary to allow us to beneficially reuse our treated process water effluent for §§ Sustainable Product Design the purpose of controlling dust across their operations. Our products are manufactured with a focus on The joint initiative had the added benefit of not only reducing their environmental impact, using sustainable allowing the mining company to avoid pumping ground and low toxicity products with minimal volatile organic water thereby reducing their energy use, but also compounds (VOCs). We have continued to invest preserving valuable groundwater at this arid location. heavily in the development and design of fibre cement The success of this project has encouraged us to look products and other building product materials that are for other similar opportunities. durable, low maintenance and energy efficient. §§ Sustainable Approach to Logistics §§ Sustainable Manufacturing Processes Raw Materials Use Our manufacturing facilities in Virginia, Illinois and Nevada The majority of raw materials used in our manufacturing continue to maintain the internationally recognised ISO process are sourced from local or regional suppliers 14001 certification with recent upgrade to the new in close proximity to each manufacturing facility. 2015 standards. In addition, our global environmental As a consequence, our operations benefit from policy mandates all of our manufacturing facilities minimising fuel and maximising transport efficiency and implement ISO 14001 best practices. As such, the rest reduces our facilities’ impact on the environment. This of the manufacturing locations worldwide operate in approach is a key factor that has been incorporated conformance with our global environmental policy. into our long-term planning for future manufacturing Emissions Reductions and Controls locations. Further, James Hardie does not use any Aligned with our effort and focus to meet or exceed all conflict minerals in the manufacturing of our products. applicable environmental regulations and requirements, Product Distribution we have implemented effective environmental control By strategically locating our manufacturing facilities near systems such as high efficiency dust collectors at each key markets, we minimise the overall shipping distances facility worldwide. Our new Tacoma plant expansion, of our products and thus reduce our carbon footprint which we expect to commission in fiscal year 2019, will associated with downstream product distribution. include state of the art material handling equipment and water treatment facilities which will continue to reduce our environmental footprint. Resource Conservation and Waste Minimisation ISO14001 CERTIFIED Another key area of focus is the practice of recycling ISO 14001 is the international raw materials that are used in our manufacturing standard that specifies process, which include water, sludge, and dust. requirements for an effective In addition, we continue to make energy efficient environmental management system (EMS). infrastructural improvements at our facilities, such as LED lights which dramatically reduce overall electricity use. Our Asia Pacific operations are undergoing an 8

ENVIRONMENTAL MANAGEMENT PRINCIPLES We maintain a comprehensive environmental management system in support of our stated environmental policy which is designed to help reduce our global environmental impact. Whenever possible, we seek to use renewable and recyclable resources, practice appropriate conservation techniques and take steps to protect the environment against pollution. In fiscal year 2018, we began reporting global carbon emissions via the Carbon Disclosure Project (CDP) reporting platform. James Hardie is committed to the continued improvement of its environmental performance as evidenced by the upgrade to the new ISO 14001‑2015 global standard. The new standard increases engagement with all stakeholders in the value chain, including key vendors, via life cycle analysis to ensure we positively influence our supply chain partners. To assist, a third‑party EHS management system was purchased in fiscal year 2018 and is currently being implemented across the organisation. 9

WORKPLACE SAFETY We are committed to providing a safe working environment The Safety Culture Steering Committee developed a multi- for every employee. In fiscal year 2018, our global Incident year plan on how to achieve our Zero Harm Culture goal with Rate and Days Away, Restricted or Transferred (DART) emphasis placed on a number of safety activities such as: rates were 1.1 and 0.5 respectively, compared to 4.0 §§ SafeStart® and Milliken Safety Way® training and 2.2 for all general manufacturing industries – a result for manufacturing employees and management consistent with the low industry average that we have team members; maintained for the past decade. §§ Sustainable housekeeping in manufacturing plants; During fiscal year 2018, we strengthened our focus on our §§ Installation of additional dust capture controls to Zero Harm Culture initiative, adopted by our executive ensure compliance with the new OSHA Silica Rule; leadership team, recognising that a single incident §§ Inclusion of intensive EHS analysis in all plant process that results in physical harm to an employee is one too modifications and expansion projects; many. To ensure the inclusion of our employees, we §§ Global standardisation and optimisation of safety have established the Safety Culture Steering Committee procedures and processes to ensure minimum standards – a team made up of a broad cross-section of employees are implemented across world-wide operations; and from each plant and representatives from various corporate §§ Implementation of a streamlined EHS Management manufacturing and support functions. System that provides the structure and guidance to support and direct expected behaviours for the business. THE ZERO HARM SAFETY CULTURE IS DEFINED AS: To become a World-Class Safety Organisation focused on Safe People, Safe Plants, and Safe Systems to drive a Zero-Harm Culture SAFE PEOPLE Committed and Passionate Safety Leaders Team Members who are empowered and engaged Visible Commitment 24/7/365 SAFE SYSTEMS SAFE PLACES Provide the structure World Class Facilities for Zero Harm A focus on continuous Sets clear Standards improvement through and Expectations safety in design Real time data to support Housekeeping as the risk reduction and barometer of safety continuous improvement 10

SOCIAL RESPONSIBILITY Operate with Respect is a core value that is shared In fiscal year 2018, the company and our employees globally by all James Hardie employees and reflected in contributed to the following charitable organisations: the company’s focus on social responsibility. Through our §§ Habitat for Humanity, in the form of materials, tools and labor Charitable Giving Program, we seek to have a positive to housing projects at various locations across the country social impact in the communities where we operate and §§ Hurricane Harvey, Irma and Maria Relief fund drives in our markets by actively participating in charitable and §§ Lower Nine organisation, a non‑profit organisation humanitarian activities and projects. Every employee dedicated to the long-term recovery of the Lower Ninth and each of our facilities is encouraged to support local Ward of New Orleans charitable efforts that align with the company’s dual vision §§ A Soldier’s Journey Home of (1) meeting the basic needs of at-risk individuals and families by helping them gain stability and self-sufficiency §§ Toys for Tots and (2) enhancing a community’s vitality through the §§ Relay for Life support of organisations that serve our communities or §§ Tacoma Rescue Mission create and foster economic and environmental vitality. Our §§ Product donations to schools commitment can be in the form of matching financial gifts §§ Donation of school supplies and material to foster made or time volunteered by our employees, as well as homes and shelters through the donation of James Hardie products. §§ Philippines medical out-reach program donating medical supplies to local displaced people 11

ASBESTOS FUNDING Additionally James Hardie is the primary supporter of During July 2018, James Hardie will contribute Australia’s largest educational campaign regarding the approximately US$103.0 million to the risks associated with asbestos. The educational campaign Asbestos Injuries Compensation Fund (AICF). is aimed at educating home renovators about asbestos hazards in the built environment. An example of the Asbestos Education Committee’s work can be found This amount represents 35% of James Hardie’s free cash on their website (www.asbestosawareness.com.au). flow for fiscal year 2018, which James Hardie is obliged to contribute as part of its commitment under the Amended ANNUAL ACTUARIAL ASSESSMENT and Restated Final Funding Agreement (AFFA). KPMG Actuarial conducts an annual actuarial assessment of AICF’s liabilities as a regular update of projections in line Including its July 2018 contribution, James Hardie has with actual claims experience and the claims outlook. provided over A$1.4 billion towards asbestos compensation and medical research and education since 2001. James Hardie received an updated actuarial report from KPMG Actuarial at 31 March 2018, which showed James Hardie continues to contribute to medical research the undiscounted and uninflated central estimate net through the Asbestos Diseases Research Foundation of insurance recoveries increased from A$1.386 billion (ADRF), which was established in 2006 as a charitable, at 31 March 2017 to A$1.443 billion at 31 March 2018. not‑for-profit organisation dedicated to assist and support the research efforts into asbestos-related diseases. James Hardie discloses summary information on claims The ADRF established and operates the Asbestos Diseases numbers as part of its quarterly results releases. For Research Institute (ADRI), a dedicated research institute. additional information, please see the full 2018 actuarial More information regarding the ADRI and ADRF can be report of KPMG Actuarial, which is available on our Investor obtained on their website (www.adri.org.au). Relations website (www.ir.jameshardie.com.au). 12

2018 KEY DATES AND CALENDAR 31 MARCH END OF JAMES HARDIE INDUSTRIES PLC FISCAL YEAR 2018 22 MAY FY18 Quarter 4 and Full Year results and management presentation 23 MAY Annual Review released 8 AUGUST Voting Instruction Forms close 10.00am (Irish Standard Time) / 7.00pm (Australian Eastern Standard Time) for Annual General Meeting 10 AUGUST Annual General Meeting, Dublin 10 AUGUST FY19 Quarter 1 results and management presentation 8 NOVEMBER FY19 Quarter 2 and Half Year results and management presentation CORPORATE HEADQUARTERS FORWARD-LOOKING STATEMENTS Europa House, Second Floor Certain statements in this Annual Review may constitute “forward-looking Harcourt Centre statements” as defined in the Private Securities Litigation Reform Act of 1995. James Hardie uses such words as “believe,” “anticipate,” “plan,” “expect,” Harcourt Street, Dublin 2, Ireland “intend,” “target,”, “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” Telephone +353 1 411 6924 “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook,” and similar Facsimile +353 1 479 1128 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 ANNUAL GENERAL MEETING (AGM) forward-looking statements are qualified in their entirety by reference to the The 2018 AGM of James Hardie Industries plc will be held in following cautionary statements. Dublin, Ireland, at 7.00am (Irish Standard Time), on Friday, 10 Forward-looking statements are based on James Hardie’s current August 2018. The AGM will be broadcast via a teleconference expectations, estimates and assumptions and because forward-looking at 4.00pm (Australian Eastern Standard Time). Further details statements address future results, events and conditions, they, by their will be set out in the Notice of Annual General Meeting 2018. 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 SHARE/CUFS REGISTRY materially different from those expressed or implied in this Annual Review, including, among others, the risks and uncertainties set forth in Section 3 James Hardie Industries plc’s registry is managed “Risk Factors” in James Hardie’s Annual Report on Form 20-F for the year by Computershare. All enquiries and correspondence ended 31 March 2018; changes in general economic, political, governmental regarding holdings should be directed to: and business conditions globally and in the countries in which James Hardie does business; changes in interest rates, changes in inflation rates; changes Computershare Investor Services Pty Ltd in exchange rates; the level of construction generally; changes in cement Level 5, 115 Grenfell Street demand and prices; changes in raw material and energy prices; changes Adelaide SA 5000 in business strategy and various other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove Or incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this Annual GPO Box 2975 Review and James Hardie does not assume any obligation to update them, Melbourne VIC 3001 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 Telephone within Australia: 1300 850 505 therein, as it contains important disclosures regarding the risks attendant to Telephone outside Australia: +61 (0) 3 9415 4000 investing in our securities. Website: www.computershare.com NON-GAAP FINANCIAL INFORMATION James Hardie Industries plc This Annual Review contains financial measures that are not considered (ARBN 097 829 895) a measure of financial performance under US GAAP and should not be considered to be more meaningful than the equivalent US GAAP measure. Incorporated in Ireland with its registered office at Europa Management has included such measures to provide investors with an House, Second Floor, Harcourt Centre, Harcourt Street, alternative method for assessing its operating results in a manner that is focused on the performance of its ongoing operations. Additionally, Dublin 2, Ireland and registered number 485719. The liability management uses such non-GAAP financial measures for the same purposes. of its members is limited. 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 ™ or ® denotes a trademark or Registered mark owned may not be directly comparable to similarly titled measures of James Hardie’s by James Hardie Technology Ltd. competitors due to potential differences in the exact method of calculation. For additional information regarding the non-GAAP financial measures ©2018. James Hardie Industries plc. 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 2018. FINANCIAL FOOTNOTES (1) Unless otherwise stated for fiscal years 2018, 2017, 2016, 2015, (2) Unless otherwise stated for fiscal years 2018, 2017, 2016, 2015, 2014 2014 and 2013 Adjusted Net Operating Profit graphs and editorial and 2013 Adjusted EBIT graphs and editorial comments throughout comments throughout this report refer to results from operations this report refer to EBIT that may exclude asbestos, asset impairments, that may exclude asbestos, asset impairments, ASIC expenses, New ASIC expenses, New Zealand weathertightness claims and Fermacell Zealand weathertightness claims, tax adjustments, loss on early debt acquisition costs. extinguishment and Fermacell acquisition costs. 13

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