CRH PLC · NYSE:CRH
CRH — Société Générale Building Materials Conference 2004
28 slides from CRH's conference presentation, Oct 14, 2004
Slide 1: Société Générale Building Materials Conference
Société Générale Building Materials Conference Paris 14th October 2004 Myles Lee Finance Director Société Générale Building Materials Conference, Paris, 14 October 2004 1
Slide 2: Overview
OVERVIEW OVERVIEW Société Générale Building Materials Conference, Paris, 14 October 2004 2
Slide 3: CRH - Overview
CRH - Overview z 1970: Irish Cement & Roadstone: Sales €26m, Ireland 95% z Embarked on a clear, consistent development strategy z Now 24 countries; 3 continents; 1,950+ locations; 54,000+ people z 2003 Sales €11bn across three core businesses z Listed Dublin, London, NASDAQ; Eurotop 300 stock z Mark
Slide 4: The CRH World
The CRH World Materials Products & Distribution Both z Leading regional positions in: Î 18 European countries, plus Israel and Tunisia Î 48 US states, 4 Canadian provinces, Argentina and Chile Société Générale Building Materials Conference, Paris, 14 October 2004 4
Slide 5: Three Core Businesses
Three Core Businesses Primary Materials Building Products Distribution Precast concrete products; concrete blocks, pavers and rooftiles; clay bricks, pavers and tiles; insulation products; fencing & security; glass fabrication, rooflights & ventilation Cement, aggregates, asphalt DIY stores, builder
Slide 6: Strategic Balance
Strategic Balance Regional Product Products Materials Europe 40% 40% Americas 50% 50% Distri- bution 20% End-Use Infra- Non-res structure RMI 30% 30% New 45% 55% Res 40% Based on current annualised sales Société Générale Building Materials Conference, Paris, 14 October 2004 6
Slide 7: Strategic Balance
Strategic Balance z Some key benefits of CRH strategic balance: Î Regions at different phases of economic cycle Î Broad end-use counters market fluctuations Î Consumer demand changes with increased wealth Î Many linkages between products and sectors Î Gives window on total market activity Î Enhances
Slide 8: CRH People
CRH People z An experienced management team Î Managed through previous economic cycles z Managers from 3 very different streams Î Grass-roots managers, now with room to grow Î Highly qualified professionals, business builders with vision Î Owner-entrepreneurs, who question the status quo z Healthy m
Slide 9: Federal Group Organised For Growth
Federal Group Organised For Growth CRH plc CEO Liam O’Mahony Finance Development Myles Lee Joe McCullough Europe Americas Europe Materials Americas Materials Products & Distribution Products & Distribution Declan Doyle Tom Hill Brian Hill John Wittstock Société Générale Building Materials Conference
Slide 10: Organisation is Key
Organisation is Key z Each business type is different Î Capital intensity Î Achievable margins Î Approach to markets/suppliers Î Strategic positioning z Crucial to identify and manage relevant issues z Decentralised structure facilitates this z Specialised experienced local management z With control
Slide 11: CRH Performance 1988 - 2003
CRH Performance 1988 - 2003 1200 PBT +17% pa 1000 800 EPS +14% pa 600 DPS +12% pa 400 200 0 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 1988 = 100 Société Générale Building Materials Conference, Paris, 14 October 2004 11
Slide 12: Development
DEVELOPMENT DEVELOPMENT Société Générale Building Materials Conference, Paris, 14 October 2004 12
Slide 13: Clear Development Strategy
Clear Development Strategy 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 regional development teams z Rigorous approach to evaluation,
Slide 14: Acquisition Approach
Acquisition Approach 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 Patient approach recognising evolving owner circumstances
Slide 15: CRH Acquisition Spend 1994 - 2004
CRH Acquisition Spend 1994 - 2004 Jura Group €330m Shelly Co. €347m Cementbouw €m 100% Ops & JV €0.7bn 1600 1400 Ibstock 49% €230m Finnsementti/Rudus €420m T. McCully €425m 1200 Ibstock 51% Secil €333m. 1000 €320m 800 Announced Tilcon US YTD €253m 600 400 200 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '0
Slide 16: Development Spend 1999 - H1 2004
Development Spend 1999 - H1 2004 €bn Europe Americas Total Materials 1.6 2.5 4.1 55% Products 1.2 1.1 2.3 31% Distribution 0.8 0.2 1.0 14% Total 3.7 3.7 7.4 100% 50% 50% 100% Société Générale Building Materials Conference, Paris, 14 October 2004 16
Slide 17: CRH Development in Mainland Europe 1990 - 2004
CRH CRH DEVELOPMENT DEVELOPMENT IN IN MAINLAND MAINLAND EUROPE EUROPE 1990 1990 -- 2004 2004 Société Générale Building Materials Conference, Paris, 14 October 2004 17
Slide 18: CRH Mainland Europe 1990
CRH Mainland Europe 1990 z Sales €0.5 billion, Operating profit €40 million; 2 countries z Materials Î Spain - Aggregates & Concrete Products z Products & Distribution Î Netherlands - Distribution, Concrete, Clay, Insulation, Fencing & Security Société Générale Building Materials Conference, Paris,
Slide 19: CRH Mainland Europe 1990
CRH Mainland Europe 1990 z Backdrop Î Existing CRH positions confined to Netherlands and Spain Î Relatively consolidated heavy-end markets in France and Germany Î Wide language and cultural differences z Strategy Î Expand Dutch products and distribution (P&D) activities Î Seek further P&D opportunit
Slide 20: CRH Mainland Europe 1995
CRH Mainland Europe 1995 z Sales €0.9 billion, Operating profit €65 million; 6 countries z Materials Î 1995 - 40% stake in leading Polish cement producer z Products & Distribution Î 1991 - 50% JV in German clay products Î 1992 - Expansion of Dutch distribution and concrete operations Î 1994 - Move i
Slide 21: CRH Mainland Europe 2000
CRH Mainland Europe 2000 z Sales €2 billion, Operating profit €174 million; 13 countries z Materials Î 98/00 - Stake in Polish cement ops increased to 99% Î 1999 - Acquisition of sole Finnish cement producer Î 1999 - 76% stake in Ukrainian cement producer Î 2000 - Acquisition of Swiss cement produce
Slide 22: CRH Mainland Europe 2004
CRH Mainland Europe 2004 z Annualised Sales circa. €5 billion; 18 countries z Materials Î 2001 - 25% stake in Israeli cement JV Î 02/03 - Ongoing bolt-ons in Finland and Switzerland Î 2004 - Acquired major Swiss aggs/rmc producer Î 2004 - 49% JV in #2 Portuguese cement producer z Products & Distribu
Slide 23: CRH Mainland Europe
CRH Mainland Europe Sales EBITA €m CRH Sales and EBITA 1990 to 2003 €m 4000 400 3500 350 3000 300 2500 250 2000 200 1500 150 1000 100 500 50 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Sales EBITA z 1998 re-organisation of European ops on product group basis contributed
Slide 24: Mainland European Construction Output
Mainland European Construction Output Total Construction Output 1990 - 2004 €bn constant 2004 euro 700 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Belgium Netherlands Spain France Germany z CRH growth achieved against a flat construction backd
Slide 25: Conclusion
CONCLUSION CONCLUSION Société Générale Building Materials Conference, Paris, 14 October 2004 25
Slide 26: CRH - Summary
CRH - Summary z Clear development strategy continues Î Tight operations with emphasis on cost control, cash flow, performance Î Prudent expansion, build on existing regions, products and sectors Î Participate in industry consolidation; where we see value Î Develop new platforms in a measured way z S
Slide 27: Strategic Vision
STRATEGIC VISION Our strategic vision is consistent and clear …. “to be a leading international building materials group delivering superior performance and growth” Société Générale Building Materials Conference, Paris, 14 October 2004 27
Slide 28: Société Générale Building Materials Conference
Société Générale Building Materials Conference Paris 14th October 2004 Myles Lee Finance Director Société Générale Building Materials Conference, Paris, 14 October 2004 28
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