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1 worldwide market growth through technology ANNUAL REPORT 2001 james hardie growth through innovation

2 new frontiers research accelerate growth The worldwide market for fibre cement is large and growing rapidly. We have a leading position in this industry, which we can further strengthen using our proprietary technology. Our objective is to accelerate growth for our fibre cement products and secure high shares of new markets while vigorously defending our well established markets.

3 leading position 02 Growth Through Technology 04 Financial and Operational Highlights 06 Chairman s Report 08 Chief Executive s Report 10 Frontiers of Competition 12 Technology and Innovation 14 US Fibre Cement 16 Asia Pacific Fibre Cement 18 Chile Fibre Cement 19 US Pipes 20 US Gypsum 21 Board and Management 22 Financial and Statistical Review 24 Financial Statements Our leading position in the USA gypsum wallboard industry enables us to produce above average returns which will provide attractive earnings over the business cycle. By pursuing the growth opportunities in fibre cement, and continuing to develop our gypsum business, we can sustain above average returns for shareholders over the long term. 3 James Hardie Annual Report 2001

4 Shareholder Information/Enquiries All enquiries and correspondence regarding shareholdings should be referred to the Share Registrar. Share Registrar Computershare Investor Services Pty Ltd Level 3, 60 Carrington Street, GPO Box 7045, Sydney NSW 1115, Australia Telephone (61 2) Toll Free Within Australia Facsimile (61 2) Website Annual Report All shareholders are entitled to receive a copy of the Annual Report. Shareholders who do not require the Annual Report or who receive more copies than required should notify the Share Registrar in writing. Registered Office and Operational Headquarters Registered Office: James Hardie Industries Limited ABN th Floor, 65 York Street, GPO Box 3935, Sydney NSW 2001, Australia Telephone (61 2) Facsimile (61 2) Operational Headquarters: La Alameda, Suite 100, Mission Viejo, CA USA Facsimile (1 949) Website > Dividend Choices James Hardie shareholders have a choice between receiving dividends by cheque or by electronic funds transfer to an Australian bank account. To participate in the electronic service, shareholders should contact the Share Registrar. James Hardie Investor Relations James Hardie Corporate Affairs 7th Floor, 65 York Street, Telephone (61 2) Facsimile (61 2) investor.relations@jameshardie.com.au Website Share Buy-Back James Hardie has a current on-market buy-back program. Stock Exchange Listing James Hardie s ordinary shares are listed on the Australian Stock Exchange Limited and trade under the code HAH. Depositary Receipt Facility James Hardie has a sponsored American Depositary Receipt facility trading on the over-the-counter market under the code JHINY. The facility is sponsored by The Bank of New York. For further information visit their website: Place of Incorporation James Hardie Industries Limited is incorporated in New South Wales, Australia. Designed and produced by Spatchurst People pictured are James Hardie employees

5 JAMES HARDIE BUILDING PRODUCTS USA La Alameda, Suite 250 MISSION VIEJO CA Facsimile (1 949) Australia 10 Colquhoun Street ROSEHILL NSW 2142 Australia Telephone (61 2) Facsimile (61 2) New Zealand 50 O Rorke Road PENROSE AUCKLAND New Zealand Telephone (64 9) Facsimile (64 9) Philippines Barangay San Isidro CABUYAO LAGUNA 4025 Philippines Telephone (63 2) Facsimile (63 2) Chile Avenida Los Boldos 620 Parque Industrial Valle Grande LAMPA SANTIAGO Chile Telephone (56 2) Facsimile (56 2) HARDIE PIPE 5100 West Lemon Street, Suite 105 TAMPA FL Telephone (1 813) Facsimile (1 813) JAMES HARDIE GYPSUM La Alameda, Suite 250 MISSION VIEJO CA Facsimile (1 949) growth through leadership

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