Crh Plc · NYSE:CRH
Crh — Investor Day (November 2010)
24 slides from Crh's investor day presentation, November 2010
Slide 1: CRH Investor Day 2010: Americas Products & Distribution
CRH Investor Day 2010 AMERICAS PRODUCTS & DISTRIBUTION B I L L S A N D B RO O K
Slide 2: Americas Products and Distribution (APD)
2 Americas Products and Distribution (APD) y BUSINESS MODEL y COMPETITIVE ADVANTAGES y OPERATIONAL EXCELLENCE y DEVELOPMENT OPPORTUNITY y KEY TAKE‐AWAYS CRH Investor Day, November 2010
Slide 3: Americas P&D – Organisational Realignment
3 Americas P&D – Organisational Realignment Prior Structure New Structure APD APD Building Products Architectural (BP) BuildingEnvelopeTM Precast Consolidated (BE) MMI Distribution Glass Oldcastle Building Solutions (OBS) Distribution Streamlined operating model to leverage cross‐product group syner
Slide 4: Americas P&D – What We Do
4 Americas P&D – What We Do APD Divisions Building Products BuildingEnvelopeTM Distribution $2.6B $0.9B $1.6B • Architectural masonry • Architectural glass • Roofing systems Commercial • Precast products • Aluminum glazing systems • Gypsum wallboard Products • Concrete accessories • Curtain walls/wi
Slide 5: Americas P&D – A Balanced Product Portfolio
5 Americas P&D – A Balanced Product Portfolio APD platform acquisitions: Year Business Area Business Lines 1978 Building Products Masonry, Precast 1990 BuildingEnvelope Glass 1996 Distribution Distribution 2006 Building Products Constr. Accessories 2007 BuildingEnvelopeTM Glazing Systems Locations:
Slide 6: Americas P&D – Today
6 Americas P&D – Today y Leader in our markets in scope, scale and performance y Organisational structure optimised to fit market reality Leading Industry Positions •No. 1 Masonry Building •No. 1 Hardscapes Products •No. 1 Specialised Precast •No. 1 Brick – Northeast Building •No. 1 Engineered Archi
Slide 7: Americas Products and Distribution (APD)
7 Americas Products and Distribution (APD) y BUSINESS MODEL y COMPETITIVE ADVANTAGES y OPERATIONAL EXCELLENCE y DEVELOPMENT OPPORTUNITY y KEY TAKE‐AWAYS CRH Investor Day, November 2010
Slide 8: Americas P&D – Competitive Advantages
8 Americas P&D – Competitive Advantages y Breadth of Product Offering { Designed to support new and RMI construction needs { Simplified vendor coordination for customers y National footprint { Scope to support national customers with personal touch of local supplier y Commitment to Operational and C
Slide 9: APD Competitive Advantage – Breadth of Product Offering
9 APD Competitive Advantage – Breadth of Product Offering I: Site work II: Building Envelope III: Exterior improvements/ Interior Finishes • Foundations • Masonry • Pavers • Vaults • Windows • Wall board • Bridges • Siding • Soils/mulches • Water mgmt. • Roofing • Fencing Coordinated support through
Slide 10: APD Competitive Adv. – Why coordination creates value
10 APD Competitive Adv. – Why coordination creates value Increased Coordination/Integration y Newly established Oldcastle Building Solutions to drive collaboration further { Simplify vendor coordination for customers { Offer value‐added solutions unique to Oldcastle { Supporting national customers w
Slide 11: APD Competitive Advantage – National footprint
11 APD Competitive Advantage – National footprint % Sales # Locations Population (m) Alaska West 31% 172 101 Northeast 22% 137 64 South 19% 142 61 Midwest 18% 94 81 International1 10% 29 372 Total APD 100% 574 344 Strong, asset‐backed business servicing key market areas 1 International includes Cana
Slide 12: APD Competitive Adv. – Operational/Commercial Excellence
12 APD Competitive Adv. – Operational/Commercial Excellence Coordinated Operational Value‐Added Sales procurement Excellence & Service Adding Value: y Capitalize on regional/national economies of scale on common inputs y Share best practices to drive operational/commercial improvement y Leverage IT
Slide 13: APD Competitive Advantage – Innovation Capability
13 APD Competitive Advantage – Innovation Capability APD Division Consistent focus on innovation… Building • R&D Center Products • New Product Development (BP) Building • Project Management EnvelopeTM • Design Solutions (BE) • Green Products Distribution • Private Label CRH Investor Day, November 20
Slide 14: APD Competitive Advantage – Our Returns
14 APD Competitive Advantage – Our Returns ROIC Return on Invested Capital 20% Industry Peers 16% CRH Americas P&D 12% 8% 4% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Bloomberg Americas P&D 2009 ROIC impacted by exceptional MMI costs Industry‐leading returns will recover when US R
Slide 15: Americas Products and Distribution (APD)
15 Americas Products and Distribution (APD) y BUSINESS MODEL y COMPETITIVE ADVANTAGES y OPERATIONAL EXCELLENCE y DEVELOPMENT OPPORTUNITY y KEY TAKE‐AWAYS CRH Investor Day, November 2010
Slide 16: Americas P&D – Operational Excellence
16 Americas P&D – Operational Excellence A Focus on the Fundamentals y Operational Efficiency y Cash Generation y Product Quality & Customer Service Precast y 7% improvement 2008‐2010fc y Maximising productivity of reduced workforce CRH Investor Day, November 2010
Slide 17: Americas P&D – Operational Excellence
17 Americas P&D – Operational Excellence BuildingEnvelopeTM y 79% improvement in inventory turns y Increased focus on managing inventory levels Distribution TWC / Sales y Improved 2.8%pts in 4 years y Disciplined and focussed cash conservation through downturn CRH Investor Day, November 2010
Slide 18: APD Operational Excellence – Our Products Margins
18 APD Operational Excellence – Our Products Margins EBITDA % EBIT % Upside leverage to margins as markets normalise CRH Investor Day, November 2010
Slide 19: APD Operational Excellence – Our Distribution Margins
19 APD Operational Excellence – Our Distribution Margins EBITDA % EBIT % Upside leverage to margins as markets normalise CRH Investor Day, November 2010
Slide 20: Americas Products and Distribution (APD)
20 Americas Products and Distribution (APD) y BUSINESS MODEL y COMPETITIVE ADVANTAGES y OPERATIONAL EXCELLENCE y DEVELOPMENT OPPORTUNITY y KEY TAKE‐AWAYS CRH Investor Day, November 2010
Slide 21: Americas P&D Development – The Last 10 years
21 Americas P&D Development – The Last 10 years Development Activity 2000 ‐ 2009 y 121 acquisitions Spend $ Bn 1.0 y Across all 3 APD Divisions 0.9 0.8 y With a total value of c$3 billion 0.7 0.6 y Comprising deals valued: 0.5 0.4 { 86 <$20 million 0.3 0.2 { 24 $20‐50 million 0.1 0.0 { 7 $50‐100 mil
Slide 22: Americas P&D Development – Opportunities
22 Americas P&D Development – Opportunities Objectives • Building solutions • Commercial performance improvement Internal Development • Automation and IT investment • New product innovation • Increased brand recognition • Optimise product portfolio Acquisitions • Distressed asset opportunities • Fil
Slide 23: Americas Products and Distribution (APD)
23 Americas Products and Distribution (APD) y BUSINESS MODEL y COMPETITIVE ADVANTAGES y OPERATIONAL EXCELLENCE y DEVELOPMENT OPPORTUNITY y KEY TAKE‐AWAYS CRH Investor Day, November 2010
Slide 24: Americas P&D – Key Take-Aways
24 Americas P&D – Key Take‐Aways The US Market y Residential / Non‐Residential challenges remain y Large customers seeking strong resilient suppliers … with national footprint y Specifiers seeking value‐added business solutions CRH Americas Products & Distribution National Local Broad Product Innova