Crh Plc · NYSE:CRH
Crh — Investor Day (October 2004)
21 slides from Crh's investor day presentation, Oct 27, 2004
Slide 1: Europe Products & Distribution - History
Europe Europe Products Products & & Distribution Distribution History History Brian Brian Hill Hill Analysts / Investor Briefing, 27 October 2004 1
Slide 2: Europe Products & Distribution - Origins
Europe Products & Distribution - Origins z Pre 1970 - Forticrete (Concrete, UK) and Aerobord (Insulation, Ireland) z 1973 - Van Neerbos, first step on Mainland Europe z Thereafter acquired and grew Î concrete, clay, insulation, fencing & security/daylight & ventilation, distribution in UK, Benelux,
Slide 3: Europe Products & Distribution - 1999 to 2004
Europe Products & Distribution - 1999 to 2004 Concrete z Expansion of Dutch, Belgian and French operations z Acquisition of major German paving producer z Entry into Denmark and Slovakia Clay z Acquired Ibstock z Expansion of Benelux operations Insulation z Expansion of Dutch & German activities z M
Slide 4: Europe Products & Distribution - 1990 to 2004
Europe Products & Distribution - 1990 to 2004 1990 Sales 1998 Sales 2004 Sales €0.7bn €1.5bn ~€4bn 2% 3% 18% 21% 13% 2% 2% 2% 6% 3% 46% 11% 66% 9% 77% 9% 10% Now a c€4bn business in 15 countries Strong Growth & Improved Product Balance Concrete Clay Insulation Building Products Distribution Sand Lim
Slide 5: Europe Products & Distribution - Organisation
Europe Products & Distribution - Organisation Managing Director Brian Hill until 31/10 John Wittstock from 1/11 Finance Peter Erkamp Concrete Sand Lime Clay Insulation Building Distribution Cementbouw Brick Liam Hughes UK Products JV (45%) Mairtin Clarke Marc van Loon Jan v Ommen ME Kees Verburg Eri
Slide 6: Divisional Profile
Europe Europe Products Products & & Distribution Distribution Divisional Divisional Profile Profile John John Wittstock Wittstock Analysts / Investor Briefing, 27 October 2004 6
Slide 7: Products & Distribution
Europe Products & Distribution Financials €m 2003 2002 2001 15 countries Sales 3,083 2,506 2,175 Operating Profit 213 153 117 Avg Net Assets 2,055 1,558 1,432 Operating Margin 6.9% 6.1% 5.4% 2003 2003 22% 25% Sales Concrete Op Profit 2% 12% 5% Clay 13% 8% Insulation Bldg Products 10% 12% Distributio
Slide 8: 2003 Market Positions
2003 Market Positions Concrete blocks # 1 paving Benelux/Slovakia; # 1 paving/landscaping Germany; # 1 arch. masonry UK Precast concrete # 1 flooring Benelux; Joint # 1 structural concrete Denmark; # 1 utility France Sand Lime Joint # 1 Netherlands Clay # 1 pavers Germany; # 1 top-end facing bricks
Slide 9: Europe Products & Distribution - Development
Europe Products & Distribution - Development Sales Development Spend, Sales and EBITA EBITA/Dev Spend €m €m 3500 Cementbouw 1200 100% Ops & JV EHL 3000 1000 Jura Distribution 2500 800 Ibstock 49% 2000 Ibstock 51% Establishment of 600 Europe P&D 1500 Division 400 1000 200 500 0 0 1990 1991 1992 1993
Slide 10: Concrete
Concrete Analysts / Investor Briefing, 27 October 2004 10
Slide 11: Concrete - Review
Concrete - Review Architectural Utility z 2003 Sales €690m z Operating Margin c 8% Structural z 7 Countries Strategy Strategy Product end-use z Strengthen portfolio in mature markets z Strengthen portfolio in mature markets 10% 30% z Build positions in central/eastern Europe 50% z Build positions in
Slide 12: Clay
Clay Analysts / Investor Briefing, 27 October 2004 12
Slide 13: Clay - Review
Clay - Review Bricks Roof tiles z 2003 Sales €360m z Operating Margin c 8% Pavers z 5 Countries Product end-use Strategy Strategy 5% 15% z Maximise efficiency/capacity utilisation 25% z Maximise efficiency/capacity utilisation 70% z Consolidate leading positions in UK and 85% z Consolidate leading p
Slide 14: Insulation
Insulation Analysts / Investor Briefing, 27 October 2004 14
Slide 15: Insulation - Review
Insulation - Review EPS XPE z 2003 Sales €260m z Operating Margin c 9% XPS PUR / PIR z 10 Countries Product end-use Strategy Strategy z Enhance leadership positions 2% z Enhance leadership positions 28% 30% z Leverage synergies through best practice 70% z Leverage synergies through best practice 70%
Slide 16: Building Products
Building Products Analysts / Investor Briefing, 27 October 2004 16
Slide 17: Building Products - Review
Building Products - Review Daylight & Ventilation z 2003 Sales €365m Concrete Accessories z Operating Margin c 8% Fencing & Security z 8 Countries Strategy Strategy Product end-use z Grow and expand from existing bases z Grow and expand from existing bases 10% 20% Î Fencing & Security Î Fencing & Se
Slide 18: Distribution
Distribution Analysts / Investor Briefing, 27 October 2004 18
Slide 19: Distribution - Review
Distribution - Review General Merchants DIY z 2003 Sales €1,362m z Operating Margin c 5% Specialist Merchants z 6 Countries Product end-use Strategy Strategy z Continue to grow DIY in Benelux and z Continue to grow DIY in Benelux and 5% 25% 30% Portugal Portugal 70% 70% z Expand merchanting business
Slide 20: Performance and Growth Focus
Performance and Growth Focus EP&D CONCRETE CLAY INSULATION BLDG PRODUCTS DISTRIBUTION Established Products Established Products Established products New Products Established products Regional Expansion Focus on efficiency Regional Expansion Regional Expansion Regional Expansion Aquisitive Growth & c
Slide 21: Summary
Summary z Organisation well in place: Î clearly defined product groups Î with leading market positions Î strong presence in core European economies Î good initial positions in accession states z Integration of 2003 acquisitions largely complete z Good pipeline of acquisition opportunities, growth se