23 May 2018 The Manager Company Announcements Office Australian Securities Exchange ...

276 Pages·2017·2.09 MB·English

James Hardie Industries plc
Europa House 2nd Floor,
Harcourt Centre
Harcourt Street, Dublin 2, Ireland
T: [phone]
F: [phone]
23 May 2018
The Manager
Company Announcements Office
Australian Securities Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
Fiscal Year 2018 Irish Statutory Accounts
James Hardie announced today that it has filed the following document relating to fiscal year 2018 with
the ASX:
● Irish Statutory Accounts, which will be filed with the Irish Companies Registration Office (CRO).
Copies of this document are available on the company’s investor relations website at
www.ir.jameshardie.com.au.
Shareholders who wish to receive a hard copy of the company’s Irish Statutory Accounts free of charge
should contact the company’s Investor relations office on [phone].
Alternatively, shareholders can forward their request by email, including their mailing details, to:
[email protected].
Yours faithfully
Natasha Mercer
Company Secretary
James Hardie Industries plc is a limited liability company incorporated in Ireland with its registered office at
Europa House, Harcourt Centre, Harcourt Street, Dublin 2, Ireland.
Directors: Michael Hammes (Chairman, USA), Brian Anderson (USA), Russell Chenu (Australia),
Andrea Gisle Joosen (Sweden), David Harrison (USA), Persio Lisboa (USA), Alison Littley (United Kingdom),
Steven Simms (USA), Rudy van der Meer (Netherlands).
Chief Executive Officer and Director: Louis Gries (USA)
Company number: 485719
ARBN: 097 829 895
James Hardie Industries plc
Irish Statutory Accounts
For the Year Ended 31 March 2018
James Hardie Industries plc
Directors’ Report and
Consolidated Financial Statements
For the Year Ended 31 March 2018
FY 2018 Irish Statutory Accounts
James Hardie Industries plc
Table of Contents
Reading this Report ii
Directors’ Report 1
Directors’ Responsibilities Statement 6
Appendix to the Directors’ Report 7
Independent Auditor’s Report 8
Consolidated Statements of Operations and Comprehensive Income 15
Consolidated Balance Sheets 16
Consolidated Statements of Cash Flows 17
Consolidated Reconciliation of Movement in Shareholders’ Deficit 18
Notes to Consolidated Financial Statements 19
Glossary of Abbreviations and Terms 32
Forward-Looking Statements 34
Company Balance Sheet 36
Company Statement of Changes in Equity 37
Notes to Company Financial Statements 38
FY 2018 Irish Statutory Accounts i
James Hardie Industries plc
Reading this Report
These Irish Statutory Accounts contain a Directors’ Report and audited consolidated financial statements
and accompanying footnote disclosures prepared in accordance with accounting principles generally
accepted in the United States of America (“US GAAP”), modified to comply with specific provisions of Irish
Company Law for the consolidated entity consisting of James Hardie Industries plc and its direct and indirect
wholly-owned subsidiaries and special purpose entity, (collectively referred to as “the Company”). In addition,
these Irish Statutory Accounts include the James Hardie Industries plc Company Balance Sheet and related
footnotes prepared on the going concern basis under the historical cost convention in accordance with the
Companies Act 2014 and Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”).
For the year ended 31 March 2018, the Company has included, as an Appendix to the Directors’ Report, its
fiscal year 2018 US and Australian Annual Report (“FY2018 Annual Report”). This report has been filed with
the US Securities and Exchange Commission (“SEC”) and, except for the exhibits to the FY2018 Annual
Report, is included in its entirety as an Appendix to the Directors’ Report. These exhibits can be obtained
by accessing the Company’s FY2018 Annual Report on Form 20-F on the SEC’s website at www.sec.gov
and on the Investor Relations area of the Company’s website at www.jameshardie.com.au. Disclosures in
the Directors’ Report and consolidated financial statements that are duplicative to the FY2018 Annual Report
have been cross-referenced to the relevant section(s) in the FY2018 Annual Report.
The Independent Auditor’s Report included on pages 8-14 refers solely to the financial statements included
in the Irish Statutory Accounts. The Report of Independent Registered Public Accounting Firm included in
the FY2018 Annual Report (Appendix to the Directors’ Report) refers solely to the financial statements in
the FY2018 Annual Report which were prepared under US GAAP. As such, readers should not rely on the
Report of Independent Registered Public Accounting Firm included in the FY2018 Annual Report as it does
not relate to the financial statements included in the Irish Statutory Accounts.

FY 2018 Irish Statutory Accounts ii
James Hardie Industries plc
Directors’ Report
For the year ended 31 March 2018
The directors present their report and audited consolidated financial statements for the fiscal year ended 31
March 2018 on the consolidated entity of James Hardie Industries plc (“JHI plc”) and its wholly-owned
subsidiaries and a special purpose entity. Unless the context indicates otherwise, JHI plc and its direct and
indirect wholly-owned subsidiaries and special purpose entity (as of the time relevant to the applicable
reference) are collectively referred to as “James Hardie”, the “James Hardie Group” or the “Company”.
The directors have elected to prepare the consolidated financial statements in accordance with Section 279
of the Companies Act 2014, which provides that a true and fair view of the assets and liabilities, financial
position and profit or loss may be given by preparing the financial statements in accordance with accounting
principles generally accepted in the United States of America (“US GAAP”), as defined in Section 279(1) of
the Companies Act 2014, to the extent that the use of those principles in the preparation of the financial
statements does not contravene any provision of the Companies Act 2014 or of any regulations made
thereunder.
Directors’ Compliance Statement
As required by section 225(2) of the Companies Act 2014, the directors acknowledge that they are responsible
for the Company's compliance with its relevant obligations (as defined in section 225(1) of the Companies
Act 2014). The directors confirm that a “compliance policy statement” (as defined in section 225(3)(a)) has
been drawn up, that appropriate arrangements and structures that are, in the directors' opinion, designed
to secure material compliance with the company’s relevant obligations have been put in place and that a
review of those arrangements and structures has been conducted in the financial year to which this report
relates.
Audit Committee
As required by section 167(3) of the Companies Act 2014, the directors hereby state that the Company has
established an audit committee.
Principal Activities
See “Information on the Company – Business Overview – General Overview of our Business” in Section 1
of the Appendix to this Directors’ Report.
Review of the Development and Performance of the Business
Trends and Economic Events
See “Management’s Discussion and Analysis – Outlook and Trend Information” in Section 2 of the Appendix
to this Directors’ Report.
Operating Results
See “Management’s Discussion and Analysis – Operating Results” in Section 2 of the Appendix to this
Directors’ Report.
In addition, refer to Note 1 of the consolidated financial statements in relation to the differences arising
between the Irish Statutory Accounts and the Appendix to the Directors' Report for the years ended 31 March
2018 and 2017.
FY 2018 Irish Statutory Accounts 1
James Hardie Industries plc
Directors’ Report (continued)
For the year ended 31 March 2018
Liquidity and Capital Allocation
See “Management’s Discussion and Analysis – Liquidity and Capital Allocation” subsections “Overview”,
“Sources of Liquidity”, “Cash Flow – Year Ended 31 March 2018”, “Borrowings”, “Capital Expenditures”,
“Capital Management and Dividends” and “Management’s Discussion and Analysis – Contractual
Obligations” in Section 2 of the Appendix to this Directors’ Report.
In addition, refer to Note 1 of the consolidated financial statements in relation to the differences arising
between the Irish Statutory Accounts and the Appendix to the Directors' Report for the years ended 31 March
2018 and 2017.
Principal Risks and Uncertainties
See “Risk Factors” in Section 3 of the Appendix to this Directors’ Report.
Legal Proceedings
See “Legal Proceedings” in Section 3 of the Appendix to this Directors’ Report.
Financial Instruments
See Financial Instruments in Note 2 to the US GAAP consolidated financial statements in Section 2 of the
Appendix to this Directors’ Report and “Quantitative and Qualitative Disclosures About Market Risk” in Section
3 of the Appendix to this Directors’ Report.
Research and Development
See “Information on the Company - Business Overview - Dependence on Trade Secrets and Research and
Development (“R&D”)” in Section 1 of the Appendix to this Directors’ Report.
Capital Management and Dividends
See Note 16 to the US GAAP consolidated financial statements in Section 2 of the Appendix to this Directors’
Report and “Management’s Discussion Analysis – Liquidity and Capital Allocation – Capital Management
and Dividends” in Section 2 of the Appendix to this Directors’ Report.
In respect of the share buy-back plan, see Note 8 in the Company financial statements.
Results for the Year and Proposed Transfer to Reserves
The results for the year are set out in the consolidated statements of operations and comprehensive income
on page 15. The balance to be transferred to reserves is US$146.1 million (2017: US$276.5 million)
Future Developments
See “Management’s Discussion and Analysis – Outlook and Trend Information” in Section 2 of the Appendix
to this Directors’ Report.
FY 2018 Irish Statutory Accounts 2
James Hardie Industries plc
Directors’ Report (continued)
For the year ended 31 March 2018
Accounting Records
The measures taken by the directors to ensure compliance with the Company’s obligations under Section
281 to 285 of the Companies Act 2014 to keep adequate accounting records are the implementation of
necessary policies and procedures for recording transactions, the employment of competent accounting
personnel with appropriate expertise and the provision of adequate resources to the financial function.
The accounting records are maintained at the Company’s registered office at Second Floor, Europa House,
Harcourt Centre, Harcourt Street, Dublin 2.
See “Memorandum and Articles of Association – Key Provisions of Our Constitution – Company Books of
Accounts” in Section 3 of the Appendix to this Directors’ Report.

Important Events Since Year End
Dividend Announcement
On 22 May 2018, the Company announced an ordinary dividend of US30.0 cents per security with a record
date of 7 June 2018 and payment date of 3 August 2018.
Acquisition
On 3 April 2018, the Company completed its acquisition of German-based XI (DL) Holdings GmbH and its
subsidiaries (including, but not limited to, Fermacell GmbH) (collectively, "Fermacell") under the terms of the
previously announced Sale and Purchase Agreement with Xella International S.A. Fermacell manufactures
and sells gypsum fiber and cement-bonded board primarily in continental Europe.
On 7 November 2017, the Company had entered into the Sales and Purchase Agreement with Xella
International S.A., whereby the Company agreed to purchase the stock of Fermacell based on an enterprise
value of €473.0 million, resulting in 100% ownership of Fermacell. At the closing of the acquisition, the
Company funded the closing payment and related fees and expenses with a combination of cash on-hand
and a €400.0 million (US$492.4 million based on exchange rate at 3 April 2018) drawdown from the Term
Loan Facility. Refer to Note 9 for further details on the Term Loan Facility.
The final determination of the purchase price allocation is expected to be completed as soon as practicable
after consummation of the acquisition. Due to the limited time between the acquisition date and the filing of
this report, it is not practicable for the Company to disclose: (i) the allocation of purchase price to assets
acquired and liabilities assumed as of the date of close, and (ii) pro forma revenues and earnings of the
combined company for the period ended 31 March 2018.
Beginning with the first quarter fiscal year 2019 results, the Company intends to include a European Building
Products segment in its report of quarterly results. This new segment will include the on-going James Hardie
European Fiber Cement business and the newly acquired Fermacell business. The current International
Fiber Cement segment will be renamed Asia Pacific Fiber Cement segment and will include our Australia,
New Zealand and Philippines businesses.
FY 2018 Irish Statutory Accounts 3
James Hardie Industries plc
Directors’ Report (continued)
For the year ended 31 March 2018
Directors of the Company
See “Board of Directors” in Section 1 of the Appendix to this Directors’ Report for a list of the Company’s
directors along with their biographies. Other than James Osborne who ceased to be a non-executive director
of the Company on 18 August 2017, Steven Simms who was appointed as an independent non-executive
director on 14 May 2017 and Persio Lisboa who was appointed as an independent non-executive director
on 2 February 2018, the directors listed served on the Board throughout fiscal year 2018.
Disclosure of Information to Auditors
As required by section 330 of the Companies Act 2014, the directors who held office at the date of approval
of this Directors’ Report confirm that so far as they are each aware, there is no relevant audit information of
which the Company’s statutory auditors are unaware and each director has taken all steps that they ought
to have taken as a director to make themselves aware of any relevant audit information and to establish that
the Company’s statutory auditors are aware of that information.
Going Concern
The business activities, together with the factors likely to affect its future development, its financial position,
financial risk management objectives, details of its financial instruments and derivative activities, and its
exposures to price, credit, liquidity and cash flow risk of the Company are set out in Section 3 of the Appendix
to this Directors’ Report. The James Hardie Group has considerable financial resources together with long-
term contracts with a number of customers and suppliers across different geographic areas and industries.
As a consequence, the directors believe that the James Hardie Group is well placed to manage its business
risks successfully despite the current uncertain economic outlook. After making enquiries, the directors have
a reasonable expectation that the James Hardie Group has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing
the annual report and accounts.
James Hardie Industries plc (“JHI plc” or the “Parent Company”) was in a net current asset position of US
$8.5 million and a net current liability position of US$1.4 million at 31 March 2018 and 2017, respectively.
The Parent Company has minimal liabilities other than amounts owed to the Group. These undertakings will
not be repaid until all other debts are satisfied. In addition, the Group has US$400.0 million of available
unused external loan facilities at 31 March 2018 which the Parent Company can access through an inter-
company facility with its Treasury subsidiary. The directors are satisfied that the Parent Company will continue
to generate adequate cash to meet all its obligations as they fall due. On this basis, and after making inquiries,
the directors have reasonable expectations that the Parent Company has adequate resources to continue
in operational existence for the foreseeable future. Accordingly, the Parent Company continues to adopt the
going concern assumption in preparing the financial statements. These financial statements do not include
any adjustments to the carrying amount or classification of assets and liabilities that would result if the Parent
Company were unable to continue as a going concern.
Directors’ and Secretary’s Interests
No director, the Company Secretary nor any member of their immediate family had any interest in shares
or debentures of any subsidiary. The interests of the executive director (Mr Louis Gries) and non-executive
directors in the ordinary share capital of the Company at the beginning (or date of appointment if later) and
end of fiscal year 2018 are set out in “Remuneration – Share Ownership and Stock Based Compensation
FY 2018 Irish Statutory Accounts 4
James Hardie Industries plc
Directors’ Report (continued)
For the year ended 31 March 2018
Arrangements” in Section 1 of the Appendix to this Directors’ Report. The non-executive directors had no
options or restricted stock units at the beginning and end of fiscal year 2018.
The interests of Ms Mercer, the Company Secretary, in the ordinary share capital of the Company was 110
shares, nil options and 5,725 RSUs at 31 March 2018 and 110 shares, nil options and 5,622 RSUs at 31
March 2017.
Political Donations
No political contributions that require disclosure under Irish law were made during fiscal year 2018.
Subsidiary Companies
Information regarding subsidiary undertakings is provided in Note 29 to the consolidated financial statements.
Branches
As of 31 March 2018, the Company does not operate any branches outside of Ireland.
Annual General Meeting
The Annual General Meeting of the Company will be held on 10 August 2018 at James Hardie’s Corporate
Headquarters in Dublin, Ireland.
Auditors
The auditors Ernst & Young, Chartered Accountants, are willing to continue in office and a resolution
authorising the directors to fix their remuneration will be submitted at the Annual General Meeting.
On behalf of the Directors
/s/ Michael Hammes /s/ Brian Anderson
Michael Hammes Brian Anderson
May 22, 2018
FY 2018 Irish Statutory Accounts 5