CRH PLC · NYSE:CRH
CRH — SSSB Building Materials Conference, Munich, January 2003
26 slides from CRH's conference presentation, Jan 15, 2003
Slide 1: SSSB Building Materials Conference, Munich, Jan 2003
SSSB Building Materials Conference, Munich, Jan 2003 SSSB Building Materials Conference Munich January 15th-17th, 2003 Liam O’Mahony, Chief Executive 1
Slide 2: CRH plc - Overview
CRH plc - OVERVIEW SSSB Building Materials Conference, Munich, Jan 2003 z 1970: Irish Cement & Roadstone: Sales €26m, Ireland 95% z Embarked on a consistent development strategy z Now 22 countries; 3 continents; 1,500 locations; 50,000 people z Sales €10.4 bn, Americas 60%±, Europe 40%± z Listed Dub
Slide 3: CRH Performance 1987 - 2001
CRH PERFORMANCE 1987 - 2001 SSSB Building Materials Conference, Munich, Jan 2003 1400 PBT +20% pa 1200 1000 800 EPS +15% pa 600 DPS +12% pa 400 200 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1987 = 100 3
Slide 4: CRH's Record
CRH’s RECORD SSSB Building Materials Conference, Munich, Jan 2003 z Many factors, including; Î a clear, consistent development strategy Î a focus on performance and growth cash flow and rigorous approach to investment Î the development and maintenance of a balanced portfolio Î investment in peop
Slide 5: Three Core Businesses: Primary Materials
THREE CORE BUSINESSES SSSB Building Materials Conference, Munich, Jan 2003 Asphalt paving, Wyoming, USA Primary Materials Cement plant, Switzerland Cement, aggregates, asphalt and surfacing, readymixed concrete 5
Slide 6: Three Core Businesses: Building Products
THREE CORE BUSINESSES Security fencing, Netherlands SSSB Building Materials Conference, Munich, Jan 2003 Building Products Paving, Québec, Canada Precast concrete products; concrete blocks, pavers and rooftiles; clay bricks, pavers and tiles; insulation products; fencing & security; glass fabricatio
Slide 7: Three Core Businesses: Distribution
THREE CORE BUSINESSES SSSB Building Materials Conference, Munich, Jan 2003 DIY, Netherlands Distribution Builders Merchanting, USA DIY stores, builders merchanting, specialist distribution 7
Slide 8: Clear Development Strategy
CLEAR DEVELOPMENT STRATEGY SSSB Building Materials Conference, Munich, Jan 2003 z Stick to core businesses in building materials z Invest “at home” Î reinvest in existing businesses; assets and people Î be low cost market leader; leverage best practices z Develop “overseas” Î build regional market l
Slide 9: Clear Development Strategy: Rigorous Approach
CLEAR DEVELOPMENT STRATEGY SSSB Building Materials Conference, Munich, Jan 2003 z Rigorous approach to: Î evaluation Î project approval Î subsequent performance review z Accelerated pace since mid-90’s Î 280+ acquisitions 1996 to date, totalling €6.5 bn Î traditional focus small to mid-size companie
Slide 10: 2002 Acquisition Spend
2002 ACQUISITION SPEND SSSB Building Materials Conference, Munich, Jan 2003 €m Acquisitions individually announced: US Aggregates 81 EHL 155 H1 Development update (acquisition spend) 385 H2 Development update (acquisition spend) 348 Total spend 969 10
Slide 11: Significant Development Capacity
SIGNIFICANT DEVELOPMENT CAPACITY SSSB Building Materials Conference, Munich, Jan 2003 z Continued development capacity supported by: Î Ongoing strong free cash flow - €700m+ in year to June 2002 Î Rolling 12 month EBITDA interest cover June 2002 - 10.1 times Î Supportive shareholder and lender base
Slide 12: Regional, Product & Sectoral Balance
REGIONAL, PRODUCT & SECTORAL BALANCE SSSB Building Materials Conference, Munich, Jan 2003 z Helps smooth the impact of industry and economic cycles z ….and enhances growth potential Regional Product Europe Products & Materials Americas 39% Distribution 48% 61% 52% Sectoral Infra- structure RMI Resid
Slide 13: Corporate Governance
CORPORATE GOVERNANCE SSSB Building Materials Conference, Munich, Jan 2003 z Non-executive Chairman + Senior Independent Director z Majority of Board (9 out of 15) are non-executive z Audit & Remuneration committees solely non-executive z Share options: Î issued at market value on date of grant to fu
Slide 14: Federal Group Organised for Growth
FEDERAL GROUP ORGANISED FOR GROWTH SSSB Building Materials Conference, Munich, Jan 2003 CRH plc CEO Liam O’Mahony Finance Development Harry Sheridan Joe McCullough Europe Americas Europe Materials Americas Materials Products & Distribution Products & Distribution Brian Griffin Tom Hill Brian Hill Jo
Slide 15: Europe Materials
EUROPE MATERIALS SSSB Building Materials Conference, Munich, Jan 2003 z Sales 2001: € 1,861m; 5yr CAGR +20 % z Operating profit 2001 : € 271m z 340+ locations; 11 countries z 9,800 employees z New build / RMI 80/20 z Residential 33% z Non-Res 36% z Infrastructure 31% Irl UK Spain Swiss Pol Fin Est L
Slide 16: Europe P&D
EUROPE P&D SSSB Building Materials Conference, Munich, Jan 2003 z Sales 2001: € 2,175M; 5yr CAGR +13 % z Operating profit 2001 : € 117m z 370+ locations; 13 countries z 12,500 employees z New build / RMI 60/40 z Residential 55% z Non-Res 20% z Infrastructure 10% z DIY 15% Irl UK Por Fr B NL Ger Swis
Slide 17: Americas Materials
AMERICAS MATERIALS SSSB Building Materials Conference, Munich, Jan 2003 z Sales 2001: $ 2,840m; 5yr CAGR +31 % z Op profit 2001 : $ 310m z 530+ locations z 25 US states z 15,000 employees z New build / RMI 30/70 z Residential 15% z Non-Res 20% z Infrastructure 65% New New York / England New Jersey C
Slide 18: Americas P&D
AMERICAS P&D SSSB Building Materials Conference, Munich, Jan 2003 z Sales 2001: $ 2,900M; 5yr CAGR +22 % z Op profit 2001 : $ 256M z 370+ locations z 45 US states z 4 provinces z S America z 15,000 employees z New build / RMI 60/40 z Residential 45% z Non-Res 40% z Infrastructure 15% USA Canada Arge
Slide 19: Distribution USA: Asbestos Litigation
DISTRIBUTION USA SSSB Building Materials Conference, Munich, Jan 2003 Asbestos litigation (announcement Sept 30, 2002) z Companies in distribution group named in asbestos litigation z 244 pending cases, 251 claimants z 95% one law firm z 52% pipe fitters z Pace decreasing z No material financial imp
Slide 20: Success Through Breadth
SUCCESS THROUGH BREADTH …. SSSB Building Materials Conference, Munich, Jan 2003 z CRH exclusively building materials z But broad product range within this: Î primary materials Î added value building products Î specialists distribution z With appropriate regional leading positions z Some key benefits
Slide 21: But Organisation a Key
…. BUT ORGANISATION A KEY SSSB Building Materials Conference, Munich, Jan 2003 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 t
Slide 22: Switzerland - Jura Acquisition Nov 2000
SWITZERLAND - JURA ACQUISITION NOV 2000 SSSB Building Materials Conference, Munich, Jan 2003 z Gross cost €425m: €268 net of surplus asset disposals z No 2 cement producer with 2 modern energy efficient plants z Strong aggregate/readymix operations in central/northeast Switzerland z Significant regi
Slide 23: Switzerland Materials - Since Acquisition
SWITZERLAND MATERIALS - SINCE ACQUISITION SSSB Building Materials Conference, Munich, Jan 2003 z €115M of surplus asset disposals z Fully integrated into Europe Materials z Acquisition of Hard AG (Dec 2002) a first step into the Zurich market z Maximising alternative fuel usage z Exploring further b
Slide 24: Switzerland Distribution - Since Acquisition
SWITZERLAND DISTRIBUTION - SINCE ACQUISITION SSSB Building Materials Conference, Munich, Jan 2003 z Renamed Richner AG z Sold 2 DIY stores and 3 locations in French speaking area for €27m z June 2002 Vicom acquisition Sales €70m; 7 locations in German speaking Switzerland z October 2002 Baubedarf ac
Slide 25: Summary
SUMMARY SSSB Building Materials Conference, Munich, Jan 2003 z Diversity is a key strength for CRH z Providing balanced geographic, sectoral and product focus and… z Exposure to a wide range of development opportunities z 2001 and 2002 have been challenging years z 2003 World economic outlook - sign
Slide 26: SSSB Building Materials Conference, Munich
SSSB Building Materials Conference, Munich, Jan 2003 SSSB Building Materials Conference Munich January 15th-17th, 2003 Liam O’Mahony, Chief Executive 26
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