EX-99.3 4 ex993maq1fy19.htm EXHIBIT 99.3

Fiscal 2019 First Quarter Ended 30 June 2018 |

Exhibit 99.3

Management’s Analysis of Results

This Management’s Analysis of Results forms part of a package of information about James Hardie Industries plc’s results. It should be read in conjunction with the other parts of this package, including the Media Release, the Management Presentation and the condensed consolidated financial statements. Except as otherwise indicated in this Management’s Analysis of Results, James Hardie Industries plc is referred to as “JHI plc.” JHI plc, together with its direct and indirect wholly-owned subsidiaries, are collectively referred to as “James Hardie,” the “Company,” “we,” “our,” or “us.” Definitions for certain capitalized terms used in this Management’s Analysis of Results can be found in the section titled “Non-GAAP Financial Measures.”
This Management’s Analysis of Results includes financial measures that are not considered a measure of financial performance under generally accepted accounting principles in the United States (“US GAAP”). These non-GAAP financial measures should not be considered to be more meaningful than the equivalent US GAAP measures. Management has included such measures to provide investors with an alternative method for assessing its financial condition and operating results in a manner that is focused on the performance of its ongoing operations. These measures exclude the impact of certain legacy items, such as asbestos adjustments, or significant non-recurring items, such as debt restructuring and acquisition costs, as well as adjustments to tax expense. In addition, management provides an adjusted effective tax rate, which excludes the tax impact of the pre-tax special items (items listed above) and tax special items. Management believes that this non-GAAP tax measure provides an ongoing effective rate which investors may find useful for historical comparisons and for forecasting and is an alternative method of assessing the economic impact of taxes on the Company, as it more closely approximates payments to taxing authorities. Management uses such non-GAAP financial measures for the same purposes. These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with US GAAP. These non-GAAP financial measures are not prepared in accordance with US GAAP, may not be reported by all of the Company’s competitors and may not be directly comparable to similarly titled measures of the Company’s competitors due to potential differences in the exact method of calculation. For additional information regarding the non-GAAP financial measures presented in this Management’s Analysis of Results, including a reconciliation of each non-GAAP financial measure to the equivalent US GAAP measure, see the section titled “Non-US GAAP Financial Measures.” In addition, this Management’s Analysis of Results includes financial measures and descriptions that are considered to not be in accordance with US GAAP, but which are consistent with financial measures reported by Australian companies. Since James Hardie prepares its condensed consolidated financial statements in accordance with US GAAP, the Company provides investors with a table and definitions presenting cross-references between each US GAAP financial measure used in the Company’s condensed consolidated financial statements to the equivalent non-US GAAP financial measure used in this Management’s Analysis of Results. See the section titled “Non-US GAAP Financial Measures.”
These documents, along with an audio webcast of the Management Presentation on 10 August 2018, are available from the Investor Relations area of our website at http://www.ir.jameshardie.com.au
NOTE TO THE READER:
As of 30 June 2018, the Company changed its reportable operating segments. Previously, the Company reported on four operating segments: (i) North America Fiber Cement, (ii) International Fiber Cement, (iii) Other Businesses, and (iv) Research and Development. As of 30 June 2018, the Company began reporting on five operating segments: (i) North America Fiber Cement, (ii) Asia Pacific Fiber Cement, (iii) Europe Building Products, (iv) Other Businesses, and (v) Research and Development. The significant changes to how certain businesses are reported in the new segment structure are as follows: (i) our European Fiber Cement business, as well as the newly acquired Fermacell business, are now reported as the Europe Building Products segment, and the remaining

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 1

Fiscal 2019 First Quarter Ended 30 June 2018 |

businesses that were historically reported in the International Fiber Cement segment are now reported in the Asia Pacific Fiber Cement segment. The Company has revised its historical segment information for the first quarter ended 30 June 2017 to be consist ent with the new reportable segment structure. The change in reportable segments had no effect on the Company's financial position, results of operations or cash flows for the periods presented. Readers are referred to Note 15 of o ur condensed consolidated financial statements for further information on our segments.
Media/Analyst Enquiries:
Jason Miele
Vice President, Investor and Media Relations

Telephone: |  | +61 2 8845 3352
Email: |  | media@jameshardie.com.au

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 2

GROUP RESULTS |

James Hardie Industries plc
Results for the 1st Quarter Ended 30 June

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change %
Net sales |  | $ | 651.0 |  |  | $ | 507.7 |  |  | 28 |
Cost of goods sold |  | (429.9 | ) |  | (338.7 | ) |  | (27 | )
Gross profit |  | 221.1 |  |  | 169.0 |  |  | 31 |
Selling, general and administrative expenses |  | (104.9 | ) |  | (73.5 | ) |  | (43 | )
Research and development expenses |  | (9.4 | ) |  | (7.6 | ) |  | (24 | )
Asbestos adjustments |  | 25.1 |  |  | (3.9 | ) |  |  |
EBIT |  | 131.9 |  |  | 84.0 |  |  | 57 |
Net interest expense |  | (10.6 | ) |  | (6.5 | ) |  | (63 | )
Other income (expense) |  | 0.2 |  |  | (0.4 | ) |  |  |
Operating profit before income taxes |  | 121.5 |  |  | 77.1 |  |  | 58 |
Income tax expense |  | (30.9 | ) |  | (19.7 | ) |  | (57 | )
Net operating profit |  | $ | 90.6 |  |  | $ | 57.4 |  |  | 58 |
Earnings per share - basic (US cents) |  | 21 |  |  | 13 |  |  |
Earnings per share - diluted (US cents) |  | 20 |  |  | 13 |  |  |
Volume (mmsf) |  | 938.6 |  |  | 690.2 |  |  | 36 |

Net sales for the quarter increased 28% from the prior corresponding period to US$651.0 million, due to the acquisition of Fermacell in Europe and higher net sales in the North America Fiber Cement and Asia Pacific Fiber Cement segment. The increase in North America Fiber Cement net sales is due to higher sales volumes and higher average net sales price, and the increase in Asia Pacific Fiber Cement net sales is driven by higher volumes.
Gross profit of US$221.1 million for the quarter increased 31% when compared to the prior corresponding period. Gross profit margin of 34% for the quarter increased 0.7 percentage points when compared with the prior corresponding period.
Selling, general and administrative (“SG&A”) expenses of US$104.9 million for the quarter increased 43% when compared to the prior corresponding period. The increase is primarily driven by the SG&A costs of the European Building Products segment which are significantly higher when compared to the prior corresponding period
due to the acquisition of Fermacell on 3 April 2018.
Asbestos adjustments for the quarter primarily reflect the non-cash foreign exchange re-measurement impact on asbestos related balance sheet items, driven by the change in AUD/USD spot exchange rate.
Other income (expense) for the quarter reflects the gains and losses on interest rate swaps.
Income tax expense for the quarter increased compared to the prior corresponding period, primarily due to an increase in reported EBIT and a change in the accounting treatment of intangible assets amortization which did not apply in the prior corresponding period, partially offset by the decrease in US corporate income tax rate.
Net operating profit for the quarter increased compared to the prior corresponding period, primarily driven by the favorable underlying performance of the operating business units and the favorable movement in asbestos adjustments, partially offset by higher SG&A expenses and income tax expense.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 3

OPERATING RESULTS - SEGMENT |

North America Fiber Cement Segment

Operating results for the North America Fiber Cement segment were as follows:

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change
Volume (mmsf) |  | 591.0 |  |  | 561.5 |  |  | 5 | %
Average net sales price per unit (per msf) |  | US$725 |  | US$693 |  | 5 | %
Fiber cement net sales |  | 433.8 |  |  | 393.1 |  |  | 10 | %
Gross profit |  |  |  |  |  | 23 | %
Gross margin (%) |  |  |  |  |  | 3.7 pts
EBIT |  | 107.2 |  |  | 79.8 |  |  | 34 | %
EBIT margin (%) |  | 24.7 |  |  | 20.3 |  |  | 4.4 pts

Net sales for the quarter were favorably impacted by a higher average net sales price and higher volumes compared to prior corresponding period. The increase in average net sales price primarily reflects the annual change in our strategic pricing effective April 2018, as well as favorable product mix. Volume increased 5% versus the prior corresponding quarter reflecting a return to a slightly positive growth above the market index in exteriors, as well as marginal growth in interiors, although this growth remains below the interiors market index. While we have returned to growth above market in our exteriors business, continued momentum will be required to reach our full year goals.
We note that there are a number of data sources that measure US housing market growth. At the time of filing our results for the period ended 30 June 2018, only US Census Bureau data was available. According to the US Census Bureau, single family housing starts for the quarter were 257,900, or 9% above the prior corresponding period.
While we have provided US Census Bureau data above, we note that this data can be different from other indices we use to measure US housing market growth, namely the McGraw-Hill Construction Residential Starts Data (also known as Dodge), the National Association of Home Builders and Fannie Mae.
The change in gross margin for the quarter can be attributed to the following components:

For the Three Months Ended 30 June 2018: |
Higher average net sales price | 3.1 | pts
Lower start up costs | 0.5 | pts
Lower production costs | 0.1 | pts
Total percentage point change in gross margin | 3.7 | pts

Gross margin for the quarter increased 3.7 percentage points compared to the prior corresponding period, primarily driven by higher average net sales price and lower start up costs. Although production costs were slightly favorable compared to the elevated levels reflected in the prior corresponding period, freight and pulp costs remain elevated and continue to compress North America segment margins.
EBIT for the quarter increased 34% compared to the prior corresponding period, primarily driven by a 23% increase in gross profit.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 4

OPERATING RESULTS - SEGMENT |

EBIT margin for the quarter increased 4.4 percentage points to 24.7% when compared to the prior corresponding period, driven primarily by the increase in gross margin as described above. In addition, as a percentage of sales, SG&A expenses decreased 0.6 percentage points for the quarter, when compared to the prior corresponding period.

Asia Pacific Fiber Cement Segment

The Asia Pacific Fiber Cement segment is comprised of the following businesses: (i) Australia Fiber Cement, (ii) New Zealand Fiber Cement, and (iii) Philippines Fiber Cement.
Operating results for the Asia Pacific Fiber Cement segment in US dollars were as follows:

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change
Volume (mmsf) |  | 138.0 |  |  | 120.1 |  |  | 15 | %
Average net sales price per unit (per msf) |  | US$753 |  | US$753 |  | — | %
Fiber cement net sales |  | 117.1 |  |  | 101.6 |  |  | 15 | %
Gross profit |  |  |  |  |  | 9 | %
Gross margin (%) |  |  |  |  |  | (2.2 pts) |
EBIT |  | 28.3 |  |  | 26.4 |  |  | 7 | %
EBIT margin (%) |  | 24.2 |  |  | 26.0 |  |  | (1.8 pts)

Volume for the quarter increased 15% compared to the prior corresponding period, driven by higher sales volumes in all regions, primarily in our Australian and the Philippines businesses. In Australia, growth was driven by market penetration and category share gains. In the Philippines, volume growth was a result of strategic distributor programs implemented in the region. In addition, each business achieved volume growth above their underlying market growth.
Fiber cement net sales for the quarter increased 15% compared to the prior corresponding period, in line with our volume growth for the period.
Gross profit for the quarter increased 9% compared to the prior corresponding period. The increase for the quarter was primarily driven by strong sales growth in our Australian business, partially offset by unfavorable plant performance in New Zealand, as well as, higher production costs driven by higher pulp and freight costs.
The change in gross margin for the quarter can be attributed to the following components:

For the Three Months Ended 30 June 2018: |
Average net sales price | — | pts
Higher production costs | (2.2 pts) |
Total percentage point change in gross margin | (2.2 pts) |

EBIT for the quarter increased 7% when compared to the prior corresponding period to US$28.3 million, primarily due to the 9% increase in gross profit described above, partially offset by higher SG&A expenses. The increase in SG&A expenses for the quarter was primarily driven by higher labor costs. As a percentage of sales, SG&A expense decreased 0.6 percentage points for the quarter when compared to the prior corresponding period.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 5

OPERATING RESULTS - SEGMENT |

Country Analysis
Australia Fiber Cement
Net sales for the quarter increased from the prior corresponding period, primarily due to an increase in volume. The key driver of volume growth was continued market penetration, as we continued to gain market share during the quarter. The category share gains reflect the addition of several large customers, including one large customer in the first half of fiscal year 2018, and another large customer in the current quarter. The volume growth during the quarter was most prominent in the East Coast regions, and was realized in both the new construction and additions and alterations markets.
EBIT for the quarter increased 18% when compared to the prior corresponding period. The increase in EBIT is primarily driven by higher net sales and favorable plant performance, partially offset by higher freight and pulp costs.
According to Australian Bureau of Statistics data, approvals for detached houses, which are a key driver of the Australian business’ sales volume, were 31,249 for the quarter, an increase of 5%, when compared to the prior corresponding quarter. The other key driver of our sales volume is the alterations and additions market, which increased 9% for the three months ended 30 June 2018 when compared to the prior corresponding period.
New Zealand Fiber Cement
Net sales for the quarter increased 8% from the prior corresponding period in line with the increase in volume.
While net sales increased, EBIT for the quarter decreased compared to the prior corresponding period, primarily driven by unfavorable plant performance.
Philippines Fiber Cement
Volume for the quarter increased 13% when compared to the prior corresponding period, primarily as a result of market share gains during the quarter. EBIT for the quarter was higher compared to the prior corresponding period, driven by strong volume growth and favorable plant performance, partially offset by start-up costs associated with our capacity expansion.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 6

OPERATING RESULTS - SEGMENT |

Europe Building Products Segment

The Europe Building Products segment is comprised of: (i) Europe Fiber Cement and (ii) Fiber Gypsum. Operating results for the Europe Building Products segment in US dollars were as follows:

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change
Volume (mmsf) |  | 209.6 |  |  | 8.6 |  |  |
Average net sales price per unit (per msf) |  | US$397 |  | US$953 |  | (58 | %)
Fiber cement net sales |  | 9.2 |  |  | 9.2 |  |  | — | %
Fiber gypsum net sales 1 |  | 86.2 |  |  | — |  |  |
Net sales |  | 95.4 |  |  | 9.2 |  |  |
Gross profit 2 |  |  |  |  |  |
Gross margin (%)2 |  |  |  |  |  |
EBIT 3 |  | (4.6 | ) |  | (0.2 | ) |  |
EBIT margin (%)3 |  | (4.8 | ) |  | (2.2 | ) |  | (2.6 | pts)
1 Also includes cement bonded board net sales 2 The change in gross profit and gross margin is not presented due to the impact from the acquisition of Fermacell during the quarter 3 Includes US$8.7 million of Fermacell transaction and integration costs, and a US$7.3 million inventory fair value adjustment resulting from acquisition accounting adjustments.

Net sales for the quarter increased compared to the prior corresponding period, driven by the increase in volume due to the Fermacell acquisition on 3 April 2018. Average net sales price in US dollars decreased compared to prior corresponding period, primarily due to product mix, as most of the volume for the quarter was from fiber gypsum products, which have lower average net sales price than fiber cement or cement bonded board products.
EBIT loss for the quarter increased US$4.4 million, compared to the prior corresponding period, primarily due to additional transaction and integration costs incurred by the Fermacell acquisition, as well as the one-time inventory fair value adjustment of US$7.3 million. As part of the acquisition of Fermacell, we incurred US$7.2 million of transaction costs and US$1.5 million of integration related costs during the quarter.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 7

OPERATING RESULTS - SEGMENT |

Below, we have included a Non-US GAAP measure, “Europe Building Products segment EBIT excluding costs associated with the acquisition”. Note that the below reconciling items have not been excluded from Adjusted EBIT and Adjusted net operating profit as presented on pages 11 and 13, respectively.

US$ Millions | Three Months Ended 30 June
| FY19
Europe Building Products segment EBIT | (4.6 | )
Inventory fair value adjustment 1 | 7.3 |
Transaction costs 2 | 7.2 |
Integration costs 3 | 1.5 |
Europe Building Products segment Adjusted EBIT excluding costs associated with the acquisition | 11.4 |
Europe Building Products segment Adjusted EBIT margin excluding costs associated with the acquisition | 11.9 | %
1 Under US GAAP, we are required to value the inventory acquired at fair market value, resulting in a preliminary total inventory fair value adjustment of US$7.3 million. As this inventory was sold during the quarter, the entire adjustment was recognized into cost of goods sold 2 Transaction costs include certain non-recurring fees incurred in conjunction with the acquisition of Fermacell 3 Integration costs relate to professional, legal and other fees incurred in conjunction with the integration of Fermacell

Net sales in the Europe Building Products segment of US$95.4 million increased 17% from pro-forma net sales from the prior corresponding period of US$81.5 million. The increase is primarily attributable to net sales increase of 8% driven by fiber gypsum market share growth in certain regions and a 9% favorable impact from changes in Euro to US$ foreign exchange rates.

Other Businesses Segment

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change
Net sales |  | 4.7 |  |  | 3.8 |  |  | 24 | %
Gross profit |  |  |  |  |  | 60 | %
Gross profit margin (%) |  |  |  |  |  | 8.9 pts |
EBIT |  | (1.5 | ) |  | (1.8 | ) |  | 17 | %

We continue to invest in business development opportunities aligned with our long term strategy and continue to incur losses in our Other Businesses segment. EBIT loss for the quarter decreased 17% to a loss of US$1.5 million, when compared to the prior corresponding period. We continue to invest in future growth through our commitment to building quality manufacturing, product development capabilities and organizational capability.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 8

OPERATING RESULTS - SEGMENT |

Research and Development Segment

We record R&D expenses depending on whether they are core R&D projects that are designed to benefit all business units, which are recorded in our R&D segment, or commercialization projects for the benefit of a particular business unit, which are recorded in the individual business unit’s segment results. The table below details the expenses of our R&D segment:

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change %
Segment R&D expenses |  | $ | (6.9 | ) |  | $ | (5.6 | ) |  | (23 | )
Segment R&D SG&A expenses |  | (0.5 | ) |  | (0.5 | ) |  | — |
Total R&D EBIT |  | $ | (7.4 | ) |  | $ | (6.1 | ) |  | (21 | )

The change in segment R&D expenses for the quarter is due to an increase in core research and development projects being undertaken by the R&D team. The expense will fluctuate period to period depending on the nature and number of core R&D projects being worked on and the AUD/USD exchange rates during the period.
Other R&D expenses associated with commercialization projects in business units are recorded in the results of the respective business unit segment. Other R&D expenses associated with commercialization projects were US$2.5 million for the quarter, compared to US$2.0 million for the prior corresponding period.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 9

OPERATING RESULTS - SEGMENT |

General Corporate

Results for General Corporate were as follows:

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change %
General Corporate SG&A expenses |  | $ | (14.9 | ) |  | $ | (9.8 | ) |  | (52 | )
Asbestos: |  |  |  |  |  |
Asbestos adjustments |  | 25.1 |  |  | (3.9 | ) |  |  |
AICF SG&A expenses 1 |  | (0.3 | ) |  | (0.4 | ) |  | 25 |
General Corporate EBIT |  | $ | 9.9 |  |  | $ | (14.1 | ) |  |  |
1 Relates to non-claims related operating costs incurred by AICF, which we consolidate into our financial results due to our pecuniary and contractual interests in AICF.

For the quarter, General Corporate SG&A expenses increased US$5.1 million, primarily due to a non-recurring US$3.4 million gain in the prior year from the sale of a storage building located near our Fontana facility, as well as the settlement of a US$1.6 million New Zealand weathertightness legal claim.
Asbestos adjustments for both periods primarily reflect the non-cash foreign exchange re-measurement impact on asbestos related balance sheet items, driven by the change in the AUD/USD spot exchange rate from the beginning balance sheet date to the ending balance sheet date, for each respective period.
The AUD/USD spot exchange rates are shown in the table below:

FY19 | FY18
31 March 2018 |  | 0.7681 |  | 31 March 2017 |  | 0.7644 |
30 June 2018 |  | 0.7387 |  | 30 June 2017 |  | 0.7697 |
Change ($) |  | (0.0294 | ) | Change ($) |  | 0.0053 |
Change (%) |  | (4 | ) | Change (%) |  | 1 |

Readers are referred to Note 9 of our 30 June 2018 condensed consolidated financial statements for further information on asbestos adjustments.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 10

OPERATING RESULTS - OTHER |

EBIT

The table below summarizes EBIT results as discussed above:

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change %
North America Fiber Cement |  | $ | 107.2 |  |  | $ | 79.8 |  |  | 34 |
Asia Pacific Fiber Cement |  | 28.3 |  |  | 26.4 |  |  | 7 |
Europe Building Products |  | (4.6 | ) |  | (0.2 | ) |  |  |
Other Businesses |  | (1.5 | ) |  | (1.8 | ) |  | 17 |
Research and Development |  | (7.4 | ) |  | (6.1 | ) |  | (21 | )
General Corporate 1 |  | (14.9 | ) |  | (9.8 | ) |  | (52 | )
Adjusted EBIT |  | 107.1 |  |  | 88.3 |  |  | 21 |
Asbestos: |  |  |  |  |  |  |
Asbestos adjustments |  | 25.1 |  |  | (3.9 | ) |  |  |
AICF SG&A expenses |  | (0.3 | ) |  | (0.4 | ) |  | 25 |
EBIT |  | $ | 131.9 |  |  | $ | 84.0 |  |  | 57 |
1 Excludes Asbestos-related expenses and adjustments

Net Interest Expense

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change %
Gross interest expense |  | $ | (13.2 | ) |  | $ | (7.6 | ) |  | (74 | )
Capitalized interest |  | 1.8 |  |  | 0.9 |  |  |  |
Interest income |  | 0.5 |  |  | 0.1 |  |  |  |
Net AICF interest income |  | 0.3 |  |  | 0.1 |  |  |  |
Net interest expense |  | $ | (10.6 | ) |  | $ | (6.5 | ) |  | (63 | )

Gross interest expense for the quarter increased US$5.6 million when compared to the prior corresponding period, primarily due to the higher outstanding balance of our senior unsecured notes, as well as interest on our 364-day term loan facility. Net AICF interest income for the quarter increased US$0.2 million primarily due to higher balances on deposits.

Other Income (Expense)

During the quarter, other income increased from a US$0.4 million loss in the prior corresponding period to a US$0.2 million gain. The movement in other income is primarily driven by the valuation of our interest rate swaps.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 11

OPERATING RESULTS - OTHER |

Income Tax

|  | Three Months Ended 30 June
|  |  | FY19 |  | FY18
| Income tax expense (US$ Millions) |  | (30.9 | ) |  | (19.7 | )
| Effective tax rate (%) |  | 25.4 |  |  | 25.6 |
| Adjusted income tax expense 1 (US$ Millions) |  | (16.5 | ) |  | (19.6 | )
| Adjusted effective tax rate 1 (%) |  | 17.1 |  |  | 24.1 |
| 1 Adjusted income tax expense represents income tax on net operating profit excluding asbestos, the amortization benefit of certain US intangible assets and other tax adjustments.

Total income tax expense for the quarter increased US$11.2 million, when compared to the prior corresponding period. The increase in income tax expense for the quarter was primarily due to an increase in reported EBIT and the change in the accounting treatment of the amortization of intangible assets which did not apply in the prior corresponding period, partially offset by the decrease in US corporate income tax rate.
Total Adjusted income tax expense for the quarter decreased US$3.1 million compared to the prior corresponding period. The decrease in Adjusted income tax expense was driven by a reduction in the US statutory corporate tax rate following the enactment of the US Tax Cuts and Jobs Act, offset by adjustments from the ongoing accounting treatment of amortization of intangible assets.
Readers are referred to Note 12 of our 30 June 2018 condensed consolidated financial statements for further information related to income tax.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 12

OPERATING RESULTS - OTHER |

Net Operating Profit

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18 |  | Change %
EBIT |  | $ | 131.9 |  |  | $ | 84.0 |  |  | 57 |
Net interest expense |  | (10.6 | ) |  | (6.5 | ) |  | (63 | )
Other income (expense) |  | 0.2 |  |  | (0.4 | ) |  |  |
Income tax expense |  | (30.9 | ) |  | (19.7 | ) |  | (57 | )
Net operating profit |  | 90.6 |  |  | 57.4 |  |  | 58 |
Excluding: |  |  |  |  |  |
Asbestos: |  |  |  |  |  |
Asbestos adjustments |  | (25.1 | ) |  | 3.9 |  |  |  |
AICF SG&A expenses |  | 0.3 |  |  | 0.4 |  |  | (25 | )
AICF interest income, net |  | (0.3 | ) |  | (0.1 | ) |  |  |
Tax adjustments 1 |  | 14.4 |  |  | 0.1 |  |  |  |
Adjusted net operating profit |  | 79.9 |  |  | 61.7 |  |  | 29 |
Adjusted diluted earnings per share (US cents) |  | 18 |  | 14 |  |  |
1 Includes tax adjustments related to Asbestos, the amortization benefit of certain US intangible assets and other tax adjustments.

Adjusted net operating profit of US$79.9 million for the quarter increased US$18.2 million, or 29%, compared to the prior corresponding period, primarily due to the US$18.8 million increase in Adjusted EBIT. This increase was primarily driven by the underlying performance of the operating business units, as reflected by the US$27.4 million increase in Adjusted EBIT in the North America Fiber Cement segment.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 13

OTHER INFORMATION |

Cash Flow

Operating Activities
Cash provided by operating activities increased US$30.1 million to US$113.3 million. The increase in cash provided by operating activities was primarily driven by a US$25.8 million increase in net income adjusted for non-cash items and favorable change in working capital of US$20.6 million, partially offset by unfavorable changes in other operating assets and liabilities of US$16.3 million. The favorable change in working capital was primarily due to rebuilding inventories in the North American Fiber Cement segment, in the prior year, related to our then capacity constraint. The changes in other operating assets and liabilities was driven by normal variations in the course of our business.
Investing Activities
Cash used in investing activities increased US$554.6 million to US$595.7 million. The increase in cash used in investing activities was primarily due to the US$558.7 million acquisition of Fermacell, as well as an increase in purchases in property, plant and equipment of US$25.5 million. The increase in capital expenditures was primarily related to the greenfield expansion project in Tacoma, as well as expenditures at our greenfield expansion project in Prattville. This was partially offset by US$38.4 million in proceeds received by AICF from short-term investments, which matured into cash during the year.
Financing Activities
Cash provided by financing activities increased US$469.1 million to US$392.4 million. The increase in cash provided by financing activities was driven by the proceeds from our 364-day term loan facility of US$492.4 million, and the US$51.9 million repayment by AICF of its NSW loan in the prior year, compared to nil in the current year. This increase was partially offset by higher net repayments of credit facilities of US$75.0 million in the current year.

Capacity Expansion

We continually evaluate the capacity required to service the housing markets in which we operate to ensure we meet demand and achieve our market penetration objectives. During the current quarter:
In North America we:

• | Completed the start-up at our Summerville facility;

• | Completed the construction of a greenfield expansion project on land adjacent to our existing Tacoma facility at a previously announced estimated total cost of US$121.5 million, which was commissioned during the quarter and continues to start-up as planned; and

• | Commenced the construction of a greenfield expansion project in Prattville, Alabama, which is expected to be commissioned in the first half of fiscal year 2020 at a previously announced estimated total cost of US$240.0 million.

In Asia Pacific we:

• | Completed the additional capacity expansion in the Philippines, which continues to start-up as planned; and

• | Continued the planning and design of a brownfield expansion project at our existing Carole Park facility in Australia with an estimated total cost of A$28.5 million. The brownfield expansion project is expected to be commissioned by the first quarter of fiscal year 2021.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 14

OTHER INFORMATION |

Liquidity and Capital Allocation

Our cash position decreased from US$281.6 million at 31 March 2018 to US$182.7 million at 30 June 2018.
At 30 June 2018, we held three forms of debt: an unsecured revolving credit facility; a 364-day term loan facility; and senior unsecured notes. The effective weighted average interest rate on our total debt was 3.6% and 4.7% at 30 June 2018 and 31 March 2018, respectively. The weighted average term of all debt, including undrawn facilities, was 5.1 years and 6.9 years at 30 June 2018 and 31 March 2018, respectively. The reduction in the weighted average term of all debt was driven by the inclusion of the 364-day term loan facility.
At 30 June 2018, we had US$500.0 million available in an unsecured revolving credit facility. At 30 June 2018, we had no amounts drawn under the unsecured revolving credit facility, compared to US$100.0 million at 31 March 2018. The unsecured revolving credit facility's expiration date is December 2022 and the size of the facility may be increased by up to US$250.0 million.
On 3 April 2018, we drew €400.0 million (US$466.2 million based on the exchange rate at 30 June 2018) from the 364-day term loan facility, and used these funds to complete the Fermacell acquisition. No further drawdowns are permitted under this term loan facility. We anticipate we will refinance the 364-day term loan facility with a long term debt facility during the current fiscal year.
Based on our existing cash balances, together with anticipated operating cash flows arising during the year and unutilized committed credit facilities, we anticipate that we will have sufficient funds to meet our planned working capital and other expected cash requirements for the next twelve months.
We have historically met our working capital needs and capital expenditure requirements from a combination of cash flows from operations and credit facilities. Seasonal fluctuations in working capital generally have not had a significant impact on our short or long term liquidity.

Capital Management and Dividends

The following table summarizes the dividends declared or paid in respect of fiscal years 2019, 2018 and 2017:

US$ Millions |  | US Cents/ Security |  | US$ Total Amount |  | Announcement Date |  | Record Date |  | Payment Date
FY 2018 second half dividend 1 |  | 0.30 |  | 132.5 |  | 22 May 2018 |  | 7 June 2018 |  | 3 August 2018
FY 2018 first half dividend |  | 0.10 |  | 46.2 |  | 9 November 2017 |  | 13 December 2017 |  | 23 February 2018
FY 2017 second half dividend |  | 0.28 |  | 131.3 |  | 18 May 2017 |  | 8 June 2017 |  | 4 August 2017
FY 2017 first half dividend |  | 0.10 |  | 46.6 |  | 17 November 2016 |  | 21 December 2016 |  | 24 February 2017
FY 2016 second half dividend |  | 0.29 |  | 130.2 |  | 19 May 2016 |  | 9 June 2016 |  | 5 August 2016
1 The FY2018 second half dividend total amount of US$132.5 million represents the value of the dividend declared. Any difference between the amount declared and the amount payable per the Company’s condensed consolidated balance sheets is due to unrealized foreign exchange gain or loss associated with the change in the dividend liability between the record date and the balance sheet date.

We periodically review our capital structure and capital allocation objectives and expect the following prioritization to remain:

• | invest in R&D and capacity expansion to support organic growth;

• | provide ordinary dividend payments within the payout ratio of 50-70% of net operating profit, excluding asbestos;

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 15

OTHER INFORMATION |

• | maintain flexibility for accretive and strategic inorganic growth and/or flexibility to manage through market cycles; and

• | consider other shareholder returns when appropriate.

Other Asbestos Information

Claims Data

|  | Three Months Ended 30 June
|  |  | FY19 |  | FY18 |  | Change %
| Claims received |  | 125 |  |  | 146 |  |  | 14 |
| Actuarial estimate for the period |  | 144 |  |  | 144 |  |  | — |
| Difference in claims received to actuarial estimate |  | 19 |  |  | (2 | ) |  |  |
| Average claim settlement 1 (A$) |  | 276,000 |  |  | 228,000 |  |  | (21 | )
| Actuarial estimate for the period 2 |  | 290,000 |  |  | 283,000 |  |  | (2 | )
| Difference in claims paid to actuarial estimate |  | 14,000 |  |  | 55,000 |  |  |  |
| 1 Average claim settlement is derived as the total amount paid divided by the number of non-nil claim settlements 2 This actuarial estimate is a function of the assumed experience by disease type and the relative mix of settlements assumed by disease type. Any variances in the assumed mix of settlements by disease type will have an impact on the average claim settlement experience

For the quarter ended 30 June 2018, we noted the following related to asbestos-related claims:

• | Claims received during the quarter were 13% below actuarial estimates and 14% lower than the prior corresponding period;

• | Mesothelioma claims reported for the quarter were 14% below actuarial expectations and 17% lower than the prior corresponding period;

• | The average claim settlement for the quarter was 5% below actuarial expectations and 21% higher than the prior corresponding period;

• | Average claim settlement sizes for mesothelioma were at or below actuarial expectations for most age groups during the quarter and were generally lower compared to actuarial expectations for all other disease types for the quarter;

• | The decrease in the average claim settlement for the quarter versus actuarial estimates was largely attributable to a lower number of and a lower average claim settlement for non-mesothelioma claims.

AICF Funding
On 2 July 2018, we made a payment of A$138.4 million (US$103.0 million) to AICF, representing 35% of our free cash flow for fiscal year 2018. Free cash flow, as defined in the AFFA, was equivalent to our fiscal year 2018 operating cash flow of US$295.0 million, adjusted to 2006 US GAAP, for free cash flow of US$294.2 million.
Free cash flow as defined in the AFFA for the three months ended 30 June 2018 is US$137.5 million, which is equivalent to operating cash flows of US$113.3 million, plus adjustments of US$24.2 million.
From the time AICF was established in February 2007 through 2 July 2018, we have contributed approximately A$1,193.4 million to the fund.
Readers are referred to Note 9 of our 30 June 2018 condensed consolidated financial statements for further information on asbestos.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 16

NON-US GAAP FINANCIAL MEASURES |

Financial Measures - US GAAP equivalents

This document contains financial statement line item descriptions that are considered to be non-US GAAP, but are consistent with those used by Australian companies. Because we prepare our condensed consolidated financial statements under US GAAP, the following table cross-references each non-US GAAP line item description, as used in Management’s Analysis of Results and Media Release, to the equivalent US GAAP financial statement line item description used in our condensed consolidated financial statements:

Management’s Analysis of Results and Media Release |  | Consolidated Statements of Operations and Other Comprehensive Income (Loss) (US GAAP)
Net sales |  | Net sales
Cost of goods sold |  | Cost of goods sold
Gross profit |  | Gross profit
Selling, general and administrative expenses |  | Selling, general and administrative expenses
Research and development expenses |  | Research and development expenses
Asbestos adjustments |  | Asbestos adjustments
EBIT* |  | Operating income (loss)
Net interest income (expense)* |  | Sum of interest expense and interest income
Other income (expense) |  | Other income (expense)
Operating profit (loss) before income taxes* |  | Income (loss) before income taxes
Income tax (expense) benefit |  | Income tax (expense) benefit
Net operating profit (loss)* |  | Net income (loss)
*- Represents non-US GAAP descriptions used by Australian companies.

EBIT – Earnings before interest and tax.
EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales.
Sales Volume
mmsf – million square feet, where a square foot is defined as a standard square foot of 5/16” thickness.
msf – thousand square feet, where a square foot is defined as a standard square foot of 5/16” thickness.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 17

NON-US GAAP FINANCIAL TERMS |

This Management’s Analysis of Results includes certain financial information to supplement the Company’s condensed consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”). These financial measures are designed to provide investors with an alternative method for assessing our performance from on-going operations, capital efficiency and profit generation. Management uses these financial measure for the same purposes. These financial measures include:

• | Adjusted EBIT;

• | Europe Building Products Segment Adjusted EBIT excluding costs associated with the acquisition;

• | Adjusted EBIT margin;

• | Europe Building Products Segment Adjusted EBIT margin excluding costs associated with the acquisition;

• | Adjusted net operating profit;

• | Adjusted diluted earnings per share;

• | Adjusted operating profit before income taxes;

• | Adjusted income tax expense;

• | Adjusted effective tax rate;

• | Adjusted EBITDA;

• | Adjusted EBITDA excluding Asbestos; and

• | Adjusted selling, general and administrative expenses (“Adjusted SG&A”).

These financial measures are or may be non-US GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission and may exclude or include amounts that are included or excluded, as applicable, in the calculation of the most directly comparable financial measures calculated in accordance with US GAAP. These financial measures are not meant to be considered in isolation or as a substitute for comparable US GAAP financial measures and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with US GAAP. In evaluating these financial measures, investors should note that other companies reporting or describing similarly titled financial measures may calculate them differently and investors should exercise caution in comparing the Company’s financial measures to similar titled measures by other companies.

Non-financial Terms

AFFA – Amended and Restated Final Funding Agreement
AICF – Asbestos Injuries Compensation Fund Ltd
Legacy New Zealand weathertightness claims ("New Zealand weathertightness") – Expenses arising from defending and resolving claims in New Zealand that allege poor building design, inadequate certification of plans, inadequate construction review and compliance certification and deficient work by sub-contractors
New South Wales loan facility ("NSW Loan") – AICF has access to a secured loan facility made available by the New South Wales Government, which can be used by AICF to fund the payment of asbestos claims and certain operating and legal costs.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 18

NON-US GAAP FINANCIAL MEASURES |

Financial Measures - US GAAP equivalents

Adjusted EBIT

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18
EBIT |  | $ | 131.9 |  |  | $ | 84.0 |
Asbestos: |  |  |  |
Asbestos adjustments |  | (25.1 | ) |  | 3.9 |
AICF SG&A expenses |  | 0.3 |  |  | 0.4 |
Adjusted EBIT |  | $ | 107.1 |  |  | $ | 88.3 |
Net sales |  | 651.0 |  |  | 507.7 |
Adjusted EBIT margin |  | 16.5 | % |  | 17.4 | %

Europe Building Products Segment Adjusted EBIT excluding costs associated with the acquisition

US$ Millions | Three Months Ended 30 June
|  | FY19
Europe Building Products Segment EBIT |  | $ | (4.6 | )
Inventory fair value adjustment |  | 7.3 |
Transaction costs |  | 7.2 |
Integration costs |  | 1.5 |
Europe Building Products Segment Adjusted EBIT excluding costs associated with the acquisition |  | $ | 11.4 |
European Building Products segment net sales |  | 95.4 |
Europe Building Products Segment Adjusted EBIT margin excluding costs associated with the acquisition |  | 11.9 | %

Adjusted Net Operating Profit

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18
Net operating profit |  | $ | 90.6 |  |  | $ | 57.4 |
Asbestos: |  |  |  |
Asbestos adjustments |  | (25.1 | ) |  | 3.9 |
AICF SG&A expenses |  | 0.3 |  |  | 0.4 |
AICF interest income, net |  | (0.3 | ) |  | (0.1 | )
Tax adjustments 1 |  | 14.4 |  |  | 0.1 |
Adjusted net operating profit |  | $ | 79.9 |  |  | $ | 61.7 |
1 Includes tax adjustments related to Asbestos,amortization benefit of certain US intangible assets and other tax adjustments.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 19

NON-US GAAP FINANCIAL MEASURES |

Adjusted diluted earnings per share

| Three Months Ended 30 June
|  | FY19 |  | FY18
Adjusted net operating profit (US$ millions) |  | $ | 79.9 |  |  | $ | 61.7 |
Weighted average common shares outstanding - Diluted (millions) |  | 443.0 |  |  | 441.6 |
Adjusted diluted earnings per share (US cents) |  | 18 |  |  | 14 |

Adjusted effective tax rate

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18
Operating profit before income taxes |  | $ | 121.5 |  |  | $ | 77.1 |
Asbestos: |  |  |  |
Asbestos adjustments |  | (25.1 | ) |  | 3.9 |
AICF SG&A expenses |  | 0.3 |  |  | 0.4 |
AICF interest income, net |  | (0.3 | ) |  | (0.1 | )
Adjusted operating profit before income taxes |  | $ | 96.4 |  |  | $ | 81.3 |
Income tax expense |  | (30.9 | ) |  | (19.7 | )
Tax adjustments 1 |  | 14.4 |  |  | 0.1 |
Adjusted income tax expense |  | $ | (16.5 | ) |  | $ | (19.6 | )
Effective tax rate |  | 25.4 | % |  | 25.6 | %
Adjusted effective tax rate |  | 17.1 | % |  | 24.1 | %
1 Includes tax adjustments related to Asbestos, the amortization benefit of certain US intangible assets and other tax adjustments

Adjusted EBITDA excluding Asbestos

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18
EBIT |  | $ | 131.9 |  |  | $ | 84.0 |
Depreciation and amortization |  | 28.1 |  |  | 21.8 |
Adjusted EBITDA |  | $ | 160.0 |  |  | $ | 105.8 |
Asbestos: |  |  |  |
Asbestos adjustments |  | (25.1 | ) |  | 3.9 |
AICF SG&A expenses |  | 0.3 |  |  | 0.4 |
Adjusted EBITDA excluding Asbestos |  | $ | 135.2 |  |  | $ | 110.1 |

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 20

NON-US GAAP FINANCIAL MEASURES |

Adjusted selling, general and administrative expenses (“Adjusted SG&A”)

US$ Millions | Three Months Ended 30 June
|  | FY19 |  | FY18
SG&A expenses |  | $ | 104.9 |  |  | $ | 73.5 |
Excluding: |  |  |  |
AICF SG&A expenses |  | (0.3 | ) |  | (0.4 | )
Adjusted SG&A expenses |  | $ | 104.6 |  |  | $ | 73.1 |
Net sales |  | $ | 651.0 |  |  | $ | 507.7 |
SG&A expenses as a percentage of net sales |  | 16.1 | % |  | 14.5 | %
Adjusted SG&A expenses as a percentage of net sales |  | 16.1 | % |  | 14.4 | %

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 21

SUPPLEMENTAL FINANCIAL INFORMATION |

As set for th in Note 9 o f t he condensed consolidated financial statements, the net AFFA liability, while recurring, is based on periodic actuarial determinations, claims experience and currency fluctuations. The company’s management measures its financial position, operating performance and year-over-year changes in operating results with and without the effect of the net AFFA liability. Accordingly, management believes that the following non-GAAP information is useful to it and investors in evaluating the company’s financial position and ongoing operating financial performance. The following non-GAAP table should be read in conjunction with the condensed consolidated financial statements and related notes contained therein.
James Hardie Industries plc
Supplementary Financial Information
30 June 2018
(Unaudited)

US$ Millions |  | Total Excluding Asbestos Compensation |  | Asbestos Compensation |  | As Reported (US GAAP)
Restricted cash and cash equivalents – Asbestos |  | $ | — |  |  | $ | 38.9 |  |  | $ | 38.9 |
Restricted short term investments – Asbestos |  | — |  |  | — |  |  | — |
Insurance receivable – Asbestos 1 |  | — |  |  | 54.1 |  |  | 54.1 |
Workers compensation asset – Asbestos 1 |  | — |  |  | 29.8 |  |  | 29.8 |
Deferred income taxes – Asbestos |  | — |  |  | 363.2 |  |  | 363.2 |
Asbestos liability 1 |  | — |  |  | 1,143.3 |  |  | 1,143.3 |
Workers compensation liability – Asbestos 1 |  | — |  |  | 29.8 |  |  | 29.8 |
Income taxes payable 1 |  | 39.1 |  |  | (5.1 | ) |  | 34.0 |
Asbestos adjustments |  | — |  |  | 25.1 |  |  | 25.1 |
Selling, general and administrative expenses |  | (104.6 | ) |  | (0.3 | ) |  | (104.9 | )
Net interest expense |  | (10.9 | ) |  | 0.3 |  |  | (10.6 | )
Income tax expense |  | (30.9 | ) |  | — |  |  | (30.9 | )
1 The amounts shown on these lines are a summation of both the current and non-current portion of the respective asset or liability as presented on our condensed consolidated balance sheets.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 22

FORWARD-LOOKING STATEMENTS |

This Management’s Analysis of Results contains forward-looking statements. James Hardie Industries plc (the “Company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases and other written materials and in oral statements made by the Company’s officers, directors or employees to analysts, institutional investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include:

▪ | statements about the Company’s future performance;

▪ | projections of the Company’s results of operations or financial condition;

▪ | statements regarding the Company’s plans, objectives or goals, including those relating to strategies, initiatives, competition, acquisitions, dispositions and/or its products;

▪ | expectations concerning the costs associated with the suspension or closure of operations at any of the Company’s plants and future plans with respect to any such plants;

▪ | expectations concerning the costs associated with the significant capital expenditure projects at any of the Company’s plants and future plans with respect to any such projects;

▪ | expectations regarding the extension or renewal of the Company’s credit facilities including changes to terms, covenants or ratios;

▪ | expectations concerning dividend payments and share buy-backs;

▪ | statements concerning the Company’s corporate and tax domiciles and structures and potential changes to them, including potential tax charges;

▪ | statements regarding tax liabilities and related audits, reviews and proceedings;

▪ | statements regarding the possible consequences and/or potential outcome of legal proceedings brought against us and the potential liabilities, if any, associated with such proceedings;

▪ | expectations about the timing and amount of contributions to AICF, a special purpose fund for the compensation of proven Australian asbestos-related personal injury and death claims;

▪ | expectations concerning the adequacy of the Company’s warranty provisions and estimates for future warranty-related costs;

▪ | statements regarding the Company’s ability to manage legal and regulatory matters (including but not limited to product liability, environmental, intellectual property and competition law matters) and to resolve any such pending legal and regulatory matters within current estimates and in anticipation of certain third-party recoveries; and

▪ | statements about economic conditions, such as changes in the US economic or housing market conditions or changes in the market conditions in the Asia Pacific region, the levels of new home construction and home renovations, unemployment levels, changes in consumer income, changes or stability in housing values, the availability of mortgages and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates, and builder and consumer confidence.

Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements.
Forward-looking statements are based on the Company’s current expectations, estimates and assumptions and because forward-looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond the Company’s control. Such known and unknown risks, uncertainties and other factors may cause actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements. These factors, some of which are discussed under “Risk Factors” in Section 3 of the Form 20-F filed with the Securities and Exchange Commission on 22 May 2018, include, but are not limited to: all matters relating to or arising out of the prior manufacture of products that contained asbestos by current and former Company subsidiaries; required contributions to AICF, any shortfall in AICF and the effect of currency exchange rate movements on the amount recorded in the Company’s financial statements as an asbestos liability; the continuation or termination of the governmental loan facility to AICF; compliance with and changes in tax laws and treatments; competition and product pricing in the markets in which the Company operates; the consequences of product failures or defects; exposure to environmental, asbestos, putative consumer class action or other legal proceedings; general economic and market conditions; the supply and cost of raw materials; possible increases in competition and the potential that competitors could copy the Company’s products; reliance on a small number of customers; a customer’s inability to pay; compliance with and changes in environmental and health and safety laws; risks of conducting business internationally; compliance with and changes in laws and regulations; currency exchange risks; dependence on customer preference and the concentration of the Company’s customer base on large format retail customers, distributors and dealers; dependence on residential and commercial construction markets; the effect of adverse changes in climate or weather patterns; possible inability to renew credit facilities on terms favorable to the Company, or at all; acquisition or sale of businesses and business segments; changes in the Company’s key management personnel; inherent limitations on internal controls; use of accounting estimates; the integration of Fermacell into our business; and all other risks identified in the Company’s reports filed with Australian, Irish and US securities regulatory agencies and exchanges (as appropriate). The Company cautions you that the foregoing list of factors is not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those referenced in the Company’s forward-looking statements. Forward-looking statements speak only as of the date they are made and are statements of the Company’s current expectations concerning future results, events and conditions. The Company assumes no obligation to update any forward-looking statements or information except as required by law.

Management's Analysis of Results: James Hardie - 1 st Quarter Fiscal Year 2019 | 23