CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference 2003
26 slides from CRH's conference presentation, May 20, 2003
Slide 1: Davy Irish Equities Conference, London, May 20th 2003
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Slide 2: Contents
CONTENTS Davy Irish Equities Conference, London, May 20th 2003 2002 Highlights 2 CRH Performance 1987-2002 3 Operating Cash Flow 4 Acquisition Expenditure 5 Financial Capacity to Expand 6 Three Core Businesses 7-9 The CRH Way 10 Clear Development Strategy 11 Acquisition Approach 12 Federal Group Org
Slide 3: 2002 Highlights
2002 HIGHLIGHTS Davy Irish Equities Conference, London, May 20th 2003 2002 2001 €m €m Change Sales 10,794 10,444 + 3% Operating profit before goodwill 1,048 1,020 + 3% Profit before tax 856 803 + 7% € cent € cent EPS before goodwill 132.54 127.32 + 4% EPS after goodwill 119.22 115.32 + 3% Cash EPS 2
Slide 4: CRH Performance 1987-2002
CRH PERFORMANCE 1987 - 2002 Davy Irish Equities Conference, London, May 20th 2003 1600 PBT 1400 +20% pa 1200 1000 800 EPS +14% pa 600 DPS +12% pa 400 200 0 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 1987 = 100 4
Slide 5: Operating Cash Flow
OPERATING CASH FLOW Davy Irish Equities Conference, London, May 20th 2003 €m +37% 800 700 +67% 600 500 400 +77% 300 200 100 0 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 5
Slide 6: Acquisition Expenditure
ACQUISITION EXPENDITURE Davy Irish Equities Conference, London, May 20th 2003 €m 1800 1600 1400 1200 1000 800 600 400 200 0 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Deals# 9 7 13 13 3 9 5 18 25 26 22 26 40 66 50 45 6
Slide 7: Financial Capacity to Expand
FINANCIAL CAPACITY TO EXPAND Davy Irish Equities Conference, London, May 20th 2003 Y/E Y/E 2002 2001 Debt (€bn) 1.7 1.9 Shareholders' funds (€bn) 4.8 4.8 Debt/shareholders' funds 36% 40% Debt/market capitalisation 28% 18% Interest cover EBITDA/Interest 11.3 8.5 EBIT/Interest 7.3 5.6 7
Slide 8: Three Core Businesses: Primary Materials
THREE CORE BUSINESSES Davy Irish Equities Conference, London, May 20th 2003 Cement Plant, Poland Primary Materials Asphalt paving, USA Cement, aggregates, asphalt and surfacing, readymixed concrete 8
Slide 9: Three Core Businesses: Building Products
THREE CORE BUSINESSES Davy Irish Equities Conference, London, May 20th 2003 Clay bricks, USA Building Products Paving, Germany Precast concrete products; concrete blocks, pavers and rooftiles; clay bricks, pavers and tiles; insulation products; fencing & security; glass fabrication, rooflights & ven
Slide 10: Three Core Businesses: Distribution
THREE CORE BUSINESSES Davy Irish Equities Conference, London, May 20th 2003 DIY, Netherlands Distribution Specialist distribution, USA DIY stores, builders merchanting, specialist distribution 10
Slide 11: The CRH Way
THE CRH WAY…. Davy Irish Equities Conference, London, May 20th 2003 z Many characteristics make up CRH, including; Î tried and tested development strategy Î rigorous approach to investment Î decentralised organisation Î development and maintenance of a balanced portfolio Î focus on: performance an
Slide 12: Clear Development Strategy
CLEAR DEVELOPMENT STRATEGY Davy Irish Equities Conference, London, May 20th 2003 z Stick to core businesses in building materials z Invest at “home”; be the low cost market leader z Develop “overseas”; create platforms for future growth z Pay fair prices that meet sellers needs z 14 devolved regiona
Slide 13: Acquisition Approach
ACQUISITION APPROACH Davy Irish Equities Conference, London, May 20th 2003 z Identifying deals Î ongoing contact with extensive 25 year+ target database Î each deal done opens doors to further opportunities Î CRH scale ensures access to all larger industry transactions z Courtship / negotiation Î pa
Slide 14: Federal Group Organised For Growth
FEDERAL GROUP ORGANISED FOR GROWTH Davy Irish Equities Conference, London, May 20th 2003 CRH plc Liam O’Mahony Finance Development Harry Sheridan Joe McCullough Myles Lee Europe Americas Europe Materials Americas Materials Products & Distribution Products & Distribution Declan Doyle Tom Hill Brian H
Slide 15: Europe Materials
EUROPE MATERIALS Davy Irish Equities Conference, London, May 20th 2003 z Sales 2002: €1,927m z Operating profit 2002: €267m z 350+ locations; 11 countries z 9,500 employees z New build / RMI 80/20 z Residential 35% z Non-Res 30% z Infrastructure 35% Irl UK Spain Swiss Pol Fin Est Lat Rus Ukr Isr Cem
Slide 16: Europe P&D
EUROPE P&D Davy Irish Equities Conference, London, May 20th 2003 z Sales 2002: €2,506m z Operating profit 2002: €153m z 400+ locations; 13 countries z 13,000 employees z New build / RMI 60/40 z Residential 60% z Non-Res 30% z Infrastructure 10% Irl UK Por Fr B NL Ger Swiss Den Sw Pol Fin Est Concret
Slide 17: Americas P&D
AMERICAS P&D Davy Irish Equities Conference, London, May 20th 2003 z Sales 2002: $3,110m z Op profit 2002: $277m z 380+ locations z 43 US states z 4 provinces z S America z 15,000 employees z New build / RMI 55/45 z Residential 45% z Non-Res 40% z Infrastructure 15% USA Canada Argentina Chile Precas
Slide 18: Americas Materials
AMERICAS MATERIALS Davy Irish Equities Conference, London, May 20th 2003 z Sales 2002: $2,905m z Op profit 2002: $317m z 540+ locations z 27 US states z 12,500 employees z New build / RMI 30/70 z Residential 15% z Non-Res 20% z Infrastructure 65% New New York / England New Jersey Central West Aggreg
Slide 19: Americas Materials - Michigan/Ohio
AMERICAS MATS - MICHIGAN/OHIO Davy Irish Equities Conference, London, May 20th 2003 z July 1999 - Thompson-McCully z Feb 2000 - The Shelly Co z 2001-2002 - 16 bolt-ons z May 2003 - S.E. Johnson Î excellent fit with existing ops Î significant synergies Î strong reserves backing Existing operations S.
Slide 20: SAFETEA - Transportation Equity Act of 2003
SAFETEA - (SAFE, ACCOUNTABLE, FLEXIBLE & EFFICIENT TRANSPORTATION EQUITY ACT OF 2003) Davy Irish Equities Conference, London, May 20th 2003 z SAFETEA - the successor to TEA-21 which ends Sept 2003 z TEA-21 provided $31.6bn of Federal Highway Funding in 2003 z Varying SAFETEA proposals for core highw
Slide 21: CRH People
CRH PEOPLE Davy Irish Equities Conference, London, May 20th 2003 z An experienced management team Î managed through previous economic cycles z Managers from 3 very different streams Î owner-entrepreneurs, who question the status quo Î grass-roots managers: now with room to grow Î highly qualified pr
Slide 22: Governance and Sustainability
GOVERNANCE AND SUSTAINABILITY Davy Irish Equities Conference, London, May 20th 2003 z Governance Î Non-executive Chairman + Senior Independent Director Î Majority of Board non-executive Î Audit & Remuneration committees solely non-executive Î Transparent reporting / shareholder communications a prio
Slide 23: 2003 Trading - Europe
2003 TRADING - EUROPE Davy Irish Equities Conference, London, May 20th 2003 z Materials ÎIreland: residential buoyant, strong ytd volume increases ÎFinland/Poland: adversely impacted by severe Q1 weather, lower volumes ÎSwitzerland: normal seasonal demand levels ÎSpain: strong demand but competition
Slide 24: 2003 Trading - Americas
2003 TRADING - AMERICAS Davy Irish Equities Conference, London, May 20th 2003 z Materials Îlow early season activity reduced by severe snowfalls Îmain construction season now getting underway Îgood outlook for Federally funded projects, however …. Îsome state/municipal funding issues Îfocus on price
Slide 25: 2003 - Overall Outlook
2003 - OVERALL OUTLOOK Davy Irish Equities Conference, London, May 20th 2003 z Contrasting weather patterns have affected early trading z Normal seasonal pick-up now underway z Some moderation in energy costs z Markets likely to remain difficult for immediate future z Weaker US$ will significantly i
Slide 26: Contact Us
CONTACT US CRH plc Davy Irish Equities Conference, London, May 20th 2003 Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 E-mail: ir@crh.com or look up our Website - www.crh.com CRH® is a registered Trade Mark of CRH plc 26