CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference, New York 2007
28 slides from CRH's conference presentation, Jan 5, 2007
Slide 1: Davy Irish Equities Conference, New York
Davy Irish Equities Conference, New York 5 January 2007 Myles Lee, Finance Director Davy Irish Equities Conference, New York, 5 January 2007 1
Slide 2: Contents
CONTENTS CRH Overview CRH Overview 3 Three Core Businesses 4 Geographic Presence 5 CRH Balance 6 CRH Development 1994 - 2006 7 Delivering Superior Performance 8 Business Review 2006 2006 Overview 10 Europe Materials – 2006 Trading Review 11 Europe Products – 2006 Trading Review 12 Europe Distributio
Slide 3: Overview
Overview Overview Davy Irish Equities Conference, New York, 5 January 2007 2
Slide 4: CRH Overview
CRH Overview z International Building Materials Group; Market Cap c.€17bn; Top 5 in sector worldwide z Now in 26 countries; 3 continents; 3,000+ locations; 80,000+ people z Annualised Sales over €20bn focussed on three core businesses Î Primary materials Î Value-added building products Î Building ma
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: Geographic Presence
Geographic Presence Now in 26 Countries and all 50 US States Davy Irish Equities Conference, New York, 5 January 2007 5
Slide 7: CRH Balance
CRH Balance Product End Use* Geographic End-use* Materials Products Americas 40% 37% 49% Distribution Europe 23% 51% Sectoral End Use* New 55% Residential Non Residential 45% 30% RMI Infrastructure 45% 25% Balanced exposure to industry demand drivers * based on 2005 sales Davy Irish Equities Confere
Slide 8: CRH Development 1994 - 2006
CRH Development 1994 - 2006 €m 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Deals # 18 25 26 22 26 40 66 50 45 41 38 58 69 Davy Irish Equities Conference, New York, 5 January 2007 7
Slide 9: Delivering Superior Performance
Delivering Superior Performance …. 1,500 PBT 1,250 +17% 1,000 EPS 750 +13% DPS +12% 500 250 0 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Creating significant shareholder value Growth Index: 1989 = 100 Davy Irish Equities Conference, New York, 5 January 2007 8
Slide 10: Business Review 2006
Business Business Review Review 2006 2006 Davy Irish Equities Conference, New York, 5 January 2007 9
Slide 11: 2006 Overview
2006 Overview z Strong performance despite higher input costs and declining US Residential z Record full year organic growth z Significant incremental contributions from €3.3bn acquisition activity in 2005/06 z Full Year PBT expected to be approx. €300m ahead of 2005’s €1.279bn (up 23%) z Record €2.
Slide 12: Europe Materials – 2006 Trading Review
Europe Materials – 2006 Trading Review z Ireland: Residential the main driver in 2006 Other sectors also strong z Finland: Strong broad-based activity Good volume and price increases z Poland: Strong cement volumes & op. leverage delivered significant profit advance z Switzerland: As expected, cemen
Slide 13: Europe Products – 2006 Trading Review
Europe Products – 2006 Trading Review z Improving markets particularly in H2 z Concrete: Excellent organic growth + good acqs contributions Arch: Broad-based pick-up after slow start Structural: Better demand backdrop through year z Clay: UK decline offset by better Mainland Europe outcome UK: Lower
Slide 14: Europe Distribution – 2006 Trading Review
Europe Distribution – 2006 Trading Review z DIY: Benelux: Satisfactory year; improved profitability despite moderate DIY market growth z Merchanting: Benelux: Increased profitability due to strong recovery in NL new housing France: Good market demand with benefits from profit improvement initiatives
Slide 15: Americas Materials – 2006 Trading Review
Americas Materials – 2006 Trading Review z Excellent outcome: significant success in recovering higher energy and other input costs z Satisfactory improvement in highway funding but with fixed budgets, volumes were impacted by price increases z New England: Strong year in MA/NH/VT more than offset d
Slide 16: Americas Products – 2006 Trading Review
Americas Products – 2006 Trading Review z Following strong H1, growth rates moderated through H2 as Res construction declined z Nevertheless, overall H2 demand remained broadly positive with growing Non-Res markets z Precast: Record year with growth in commercial & infra construction z APG: Robust 2
Slide 17: Americas Distribution – 2006 Trading Review
Americas Distribution – 2006 Trading Review z Another year of growth with good performance from heritage and acquired businesses z Replacement demand remained generally robust throughout the year z Roofing & Siding: H2 Florida decline following very strong activity post 2004/5 hurricanes z Interior
Slide 18: Development Activity 2006
Development Development Activity Activity 2006 2006 Davy Irish Equities Conference, New York, 5 January 2007 17
Slide 19: 2006 Acquisitions
2006 Acquisitions z Total development activity in 2006 of €2.1 billion z Comprising 69 acquisitions spanning all business segments z Split approximately 20% Europe, 80% Americas z Including three significant individual deals at a combined cost of €1.3 billion … Î Europe - Halfen-Deha (announced May
Slide 20: 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 21: Halfen Business Segments
HALFEN Business Segments … Anchoring AnchoringTechnology Technology Façade FaçadeSystems Systems Transport TransportSystems Systems Reinforcement ReinforcementSystems Systems Fixing/Framing Fixing/FramingSystems Systems Davy Irish Equities Conference, New York, 5 January 2007 20
Slide 22: 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 (c.70% Sales), residential and infrastructure z Network of 19 well positioned manufacturing facilitie
Slide 23: 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, New York, 5 January 2007 22
Slide 24: APAC – New Americas Materials Platform
APAC – New Americas Materials Platform z Major expansion into midwestern and southern US states z Significantly increases US aggregates and asphalt positions z Increases exposure to positive US infrastructure spending trend z Substantial scope for administrative, operational and purchasing synergies
Slide 25: APAC – New Americas Materials Platform
APAC – New Americas Materials Platform Americas Materials heritage operations APAC operations Davy Irish Equities Conference, New York, 5 January 2007 24
Slide 26: Outlook
Outlook Outlook Davy Irish Equities Conference, New York, 5 January 2007 25
Slide 27: Outlook
Outlook z Overall European construction demand outlook remains positive z While decline in US Res (<10% of CRH t/over) will impact overall US construction … z … CRH expects to benefit from its broad geographic, product and end-use diversity z With … Î Ongoing focus on price and cost effectiveness Î
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