CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference 2006
28 slides from CRH's conference presentation, May 18, 2006
Slide 1: Davy Irish Equities Conference, London, May 18th 2006
Davy Irish Equities Conference London, May 18th 2006 Liam O’Mahony, Chief Executive Davy Irish Equities Conference, London, May 18th 2006 0
Slide 2: Contents
CONTENTS CRH Introduction CRH Overview 2 CRH Core Businesses 3 CRH Strategic Balance 4 CRH Track Record 5 2005 Performance Highlights 6 CRH Development CRH Strategy 8 CRH Development 9 2006 Development to-date 11 Halfen 12 MMI 18 Trading and Outlook Europe 23 Americas 24 Conclusion 25 Davy Irish Equ
Slide 3: Introduction
Introduction Introduction Davy Irish Equities Conference, London, May 18th 2006 1
Slide 4: CRH Overview
CRH OVERVIEW z Diversified building materials Group: Europe c. 50%, Americas c. 50% z Three core businesses: Materials 40%, Products 37%, Distribution 23% (2005 sales) z Operating in 25 countries, 2,600+ locations, 66,500+ employees z Market capitalisation c. €15 Bn – in top 5 in sector worldwide z
Slide 5: 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 6: 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% Davy Irish Equities Conference, London, May 18th 2006 4
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 Davy Irish
Slide 8: 2005 Performance
2005 PERFORMANCE Sales €14,449m Ï 13% Operating profit €1,392m Ï 14% Profit before tax €1,279m Ï 16% EPS Basic 186.7c Ï 14% Cash EPS 292.5c Ï 12% Dividend 39.0c Ï 18% 13th consecutive year of profit and EPS growth (20% cagr) 22nd consecutive year of dividend increase (13% cagr) Davy Irish Equities C
Slide 9: Development
Development Development Davy Irish Equities Conference, London, May 18th 2006 7
Slide 10: 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 Generally mid-sized deals with some larger transactions z Negotiate deals that meet sellers needs ... and our needs
Slide 11: CRH Development Approach
CRH DEVELOPMENT APPROACH Identifying Identifyingopportunities opportunities Courtship/negotiation Courtship/negotiation z Ongoing contact; 25 year+ z Patient approach, recognise z Ongoing contact; 25 year+ z Patient approach, recognise database database evolving evolvingcircumstances circumstances z
Slide 12: CRH Development 1994 – 2006 YTD
CRH DEVELOPMENT 1994 – 2006 YTD €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% 1200 €333m Ibstock 51% Halfen €170m MMI €280m 1000 €320m 800 Tilcon US 600 €253
Slide 13: 2006 Acquisitions To-Date
2006 ACQUISITIONS TO-DATE z Total acquisitions spend to-date of €700 million z Comprising over 20 acquisitions z Spanning all operating Divisions z Including two announced deals …. Î Europe - Halfen-Deha (2 May 2006), €170 million Î Americas - MMI (26 April 2006), €280 million ($350 million) Davy Ir
Slide 14: Halfen-Deha
HALFEN-DEHA 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 million; 2005 Sales: €190 million
Slide 15: 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 16: Construction Accessories
CONSTRUCTION ACCESSORIES … Auxiliary AuxiliaryMaterials Materials to tothe theConstruction ConstructionTrade Trade Spacers Spacers Formwork Formwork Fixings Fixings Connectors Connectors Reinforcement Reinforcement Davy Irish Equities Conference, London, May 18th 2006 14
Slide 17: 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 Davy Irish Equit
Slide 18: 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 Davy Irish Equities Conference, London, May 18th 2006 16
Slide 19: 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 20: MMI
MMI 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 Mexico z Consideration: $350 milli
Slide 21: 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) Davy Irish Equities Conference, London, May 18th 2006 19
Slide 22: 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 23: 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 24: Trading and Outlook
Trading Trading and and Outlook Outlook Davy Irish Equities Conference, London, May 18th 2006 22
Slide 25: 2006 Trading & Outlook - Europe
2006 TRADING & OUTLOOK - EUROPE Materials z Ireland & Finland strong broad-based construction activity continuing into 2006 z Switzerland major Infra project complete but stable Res & Non-Res demand z Poland & Ukraine after weather-affected start, good demand emerging for 2006 z Spain & Portugal fav
Slide 26: 2006 Trading & Outlook - Americas
2006 TRADING & OUTLOOK - AMERICAS Materials z As usual, highway construction season in our markets just getting underway z Backlogs encouraging & mild weather supportive of early private sector activity z Key focus on pricing and operational efficiencies to offset input cost increases Outlook … With
Slide 27: In Summary
IN SUMMARY z Strong profit and development performance in 2005 z Continued recovery of significant energy cost increases will be key to current year outcome z Early 2006 has seen good momentum across our businesses & further acquisition success z Continuing focus on operational effectiveness and ong
Slide 28: 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