CRH PLC · NYSE:CRH
CRH — Merrion Irish Stock Market Conference 2006
33 slides from CRH's conference presentation, Jul 20, 2006
Slide 1: Merrion Irish Stock Market Conference
Merrion Irish Stock Market Conference London, July 20th 2006 Myles Lee, Finance Director Merrion Irish Stock Market Conference, London, July 20th 2006 0
Slide 2: Contents
CONTENTS CRH Introduction CRH Overview 2 CRH Strategic Balance 3 CRH Core Businesses 4 CRH Track Record 5 2004 / 2005 Performance Highlights 6 H1 2006 Trading Update H1 Trading Update - Overview 8 H1 Trading Update - Europe 9 H1 Trading Update - Americas 12 2006 Full Year Outlook 15 H1 Development A
Slide 3: Introduction
Introduction Introduction Merrion Irish Stock Market Conference, London, July 20th 2006 1
Slide 4: CRH Overview
CRH OVERVIEW z Diversified building materials Group; 25 countries, 2,600+ locations, 66,500+ employees z Three core businesses in Materials, Products and Distribution z 2005 Sales €14.45 bn, EBITDA €1.96 bn, EBT €1.28 bn, EPS 187c z Market cap. c.€13.5 bn (at share price of €25.00) - top 5 in sector
Slide 5: CRH Balance
CRH BALANCE Product Balance* Geographic Balance* Materials Products Americas 40% 37% 49% Europe Distribution 51% 23% Product End-Use Balance* Residential Non-Residential New 45% 30% 55% RMI Infrastructure * based on 2005 Sales (IFRS) 45% 25% Merrion Irish Stock Market Conference, London, July 20th 2
Slide 6: Three Core Businesses
THREE CORE BUSINESSES Primary Materials Building Products Distribution Precast concrete products; concrete blocks, pavers, rooftiles; clay bricks, pavers, tiles; insulation products; fencing & security; glass fabrication, rooflights & ventilation, construction accessories Cement, aggregates, asphalt
Slide 7: Delivering Superior Performance
DELIVERING SUPERIOR PERFORMANCE 1,250 PBT* +17% 1,000 EPS 750 +13% DPS +13% 500 250 0 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 *PBT: 1998-2003 excludes goodwill amortisation, 2004-2005 IFRS basis Growth Index: 1989 = 100 … Creating Significant Shareholder Value TSR since 1
Slide 8: 2004 / 2005 Performance
2004 / 2005 PERFORMANCE 2004* 2005* Sales Ï 16% Ï 13% Operating profit Ï 19% Ï 14% Profit before tax Ï 18% Ï 16% EPS Basic Ï 18% Ï 14% Cash EPS Ï 15% Ï 12% Dividend Ï 17% Ï 18% 2005: 13th consecutive year of profit and EPS growth (20% cagr) 22nd consecutive year of dividend increase (13% cagr) Merri
Slide 9: H1 2006 Trading Update
H1 H1 2006 2006 Trading Trading Update Update Merrion Irish Stock Market Conference, London, July 20th 2006 7
Slide 10: H1 2006 Trading Update - Overview
H1 2006 TRADING UPDATE - OVERVIEW Trading update issued 5th July 2006 indicated … z A particularly good start to the year z Continuing strong performance in our American businesses z Progress from European operations despite subdued trading in some major markets z Expectation that H1 PBT will increa
Slide 11: H1 Update – Europe Materials
H1 UPDATE – EUROPE MATERIALS z Ireland Improved activity; higher input costs being offset by phased price recovery z Finland Strong start helped by broad-based construction demand z Switz. Lower cement volumes compensated by improved downstream performance z Poland Rapid recovery in activity after w
Slide 12: H1 Update – Europe Products
H1 UPDATE – EUROPE PRODUCTS z Concrete Î Structural: benefiting from stronger demand in Benelux, France and Denmark Î Architectural: after slow start, improved demand in May / June Î Overall, with acquisition benefits / organic growth, expect strong H1 advance z Clay Î Winter shutdowns in UK / DE to
Slide 13: H1 Update – Europe Distribution
H1 UPDATE – EUROPE DISTRIBUTION z DIY Î Pick-up in overall Dutch retail sentiment evident since early 2006 Î However, only in recent months reflected across DIY ops Î In consequence, H1 Benelux results expected to be similar to 2005 z Builders Merchants Î Improving momentum in Ben, FR, CH with good
Slide 14: H1 Update – Americas Materials
H1 UPDATE – AMERICAS MATERIALS z Despite heavy rains in parts of East and Mid-West in latter weeks of June … z … H1 demand exceeded expectations helped by mild winter & early private sector demand z Overall volumes were satisfactory with continuing strong performance in West z Ongoing focus on prici
Slide 15: H1 Update – Americas Products
H1 UPDATE – AMERICAS PRODUCTS z Excellent H1: generally favourable weather, good Res activity, further Non-Res improvement z Annual Products revenues: broadly 40% Residential, 45% Non-Residential, 15% Infrastructure z Precast Significant benefits from broad-based Non-Res growth & good Infra demand z
Slide 16: H1 Update – Americas Distribution
H1 UPDATE – AMERICAS DISTRIBUTION z Following on from a record performance in 2005 z H1 saw continued positive trading conditions in both Roofing & Siding and Interior Products z Florida market has remained particularly buoyant z Moderation in new housing demand has had little adverse impact to-date
Slide 17: 2006 Full Year Outlook
2006 FULL YEAR OUTLOOK z Emergence of somewhat firmer demand in some previously subdued European economies z With ongoing momentum in the more strongly performing European countries z While US housing moderating, activity remains at strong levels; Non-Res continues to grow z US highway markets robus
Slide 18: Development
Development Development Merrion Irish Stock Market Conference, London, July 20th 2006 16
Slide 19: Clear Strategy
CLEAR STRATEGY z Stick to core businesses in building materials - but broad z Invest at “home”; be the low cost market leader z Develop “overseas”; create platforms for future growth z Mid-sized deals with some larger transactions z Negotiate deals that meet sellers needs ... and our needs z Rigorou
Slide 20: H1 2006 Acquisitions
H1 2006 ACQUISITIONS z Total development spend in H1 2006 of over €800 million z Comprising 36 acquisitions and 2 large capital projects z Spanning all business segments z Split approximately 35% Europe, 65% Americas z Including two announced deals …. Î Europe - Halfen-Deha (2 May 2006), €170 millio
Slide 21: Halfen-Deha – Construction Accessories
HALFEN-DEHA – CONSTRUCTION ACCESSORIES z Leading European producer of metal construction accessories including … z Anchoring technology and systems for façades, transport, reinforcement & fixing/framing z Used in commercial, civil engineering and residential construction z Consideration: €170 millio
Slide 22: Construction Accessories in Europe
CONSTRUCTION ACCESSORIES IN EUROPE Plakabeton Mavotrans Aschwanden Syncotec Halfen (Belgium) (Netherlands) (Switzerland) (Central Europe) (Germany) Leading supplier Leading NL Market leader European market Leading metal & plastic distributor of a in specified leader European accessories broad range
Slide 23: Construction Accessories …
CONSTRUCTION ACCESSORIES … Auxiliary AuxiliaryMaterials Materials to tothe theConstruction ConstructionTrade Trade Spacers Spacers Formwork Formwork Fixings Fixings Connectors Connectors Reinforcement Reinforcement Merrion Irish Stock Market Conference, London, July 20th 2006 21
Slide 24: Halfen Business Segments …
HALFEN BUSINESS SEGMENTS … z Leading European producer of metal construction accessories … Anchoring AnchoringTechnology Technology Façade FaçadeSystems Systems Transport TransportSystems Systems Reinforcement ReinforcementSystems Systems Fixing/Framing Fixing/FramingSystems Systems Merrion Irish St
Slide 25: Some Prestige Projects …
SOME PRESTIGE PROJECTS … z HALFEN cladding panel suspension system used to fix the pre-cast concrete façade elements, Grande Arche, Paris z HALFEN bolts used to fix the curtain wall facade for the Petronas Towers, Kuala Lumpur Merrion Irish Stock Market Conference, London, July 20th 2006 23
Slide 26: Fit with CRH …
FIT WITH CRH … Existing Halfen Businesses Anchoring / Fixing Systems 9 9 Brickwork / Stone Fixings 9 9 Spacers 9 Reinforcement Systems 9 9 Formwork 9 Lifting / Transport Systems 9 9 Seating / Sealing Systems 9 Halfen brings … regional leadership positions in complementary products, strong brand reco
Slide 27: MMI – New Americas Product Platform
MMI – NEW AMERICAS PRODUCT PLATFORM z Leading US manufacturer & distributor (mainly fencing) of … z Fencing products, welded wire reinforcement and construction accessories z Used in non-residential, residential and infrastructure z Network of 19 well positioned manufacturing facilities in US and Me
Slide 28: MMI Business Segments …
MMI BUSINESS SEGMENTS … Construction ConstructionAccessories Accessories(20% (20%of ofSales) Sales) Fencing Fencing(45% (45%of ofSales) Sales) Welded WeldedWire WireReinforcement Reinforcement(35% (35%of ofSales) Sales) Merrion Irish Stock Market Conference, London, July 20th 2006 26
Slide 29: MMI Rationale
MMI RATIONALE z New product platforms – an ongoing feature of CRH's US expansion … z … Materials (1985) Æ Glass (1990) Æ Distribution (1996) z Ongoing search for new platform over recent years z With focus on fragmented sectors offering consolidation opportunities z MMI an ideal platform in familiar
Slide 30: MMI The Opportunity
MMI THE OPPORTUNITY z MMI with 70% exposure to US Non-Res sector - in recovery from 2001-2003 lows z Potential to accelerate growth by building on European expertise z CA – potential for joint purchasing & product development with European operations z Welded Wire – US market penetration just 10% ve
Slide 31: CRH Development 1994 – H1 2006
CRH DEVELOPMENT 1994 – H1 2006 €m Jura Group €330m Shelly Co. €347m Cementbouw 1800 100% Ops & JV Uniland 26.3% €300m €0.7bn Mountain €344m 1600 Ibstock 49% €230m Finnsementti/Rudus €420m 1400 T. McCully €425m Secil 49% Halfen €170m 1200 €333m MMI €280m Ibstock 51% 1000 €320m 800 Tilcon US €253m 600
Slide 32: In Conclusion
IN CONCLUSION z Particularly good start to 2006 with expectation of approx. one-third increase in H1 PBT z Strong H1 2006 development spend of approx. €800 million z Pipeline of potential development opportunities remains strong z Due diligence of APAC in progress under exclusivity agreement with As
Slide 33: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 Email: ir@crh.com or look up our Website - www.crh.com This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such