CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference, New York 2005
33 slides from CRH's conference presentation, Jan 7, 2005
Slide 1: Davy Irish Equities Conference, New York
a~îó=fêáëÜ=bèìáíáÉë `çåÑÉêÉåÅÉ kÉï=vçêâ T=g~åì~êó=OMMR iá~ã=lÛj~Üçåó `ÜáÉÑ=bñÉÅìíáîÉ Davy Irish Equities Conference, New York, 7 January 2005 1
Slide 2: Contents
Contents CRH Overview 4 Three Core Businesses 5 Clear Development Strategy 6 Federal Group Organised for Growth 7 Europe Materials 8 Europe Products & Distribution 9 Americas Materials 10 Americas Products & Distribution 11 Acquisition Approach 13 CRH Development Spend 1994 - 2004 14 Europe Material
Slide 3: Overview
OVERVIEW OVERVIEW Davy Irish Equities Conference, New York, 7 January 2005 3
Slide 4: 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; 2,000+ locations; 60,000+ people z Annualised Sales circa €12.5bn across three core businesses z Listed Dublin (CRH.I), London (CRH.L), NA
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: 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 the sellers (and our) needs z 14 devolved regional development teams z Rigorous approach
Slide 7: Federal Group Organised For Growth
Federal Group Organised For Growth CRH plc CEO Liam O’Mahony Finance Development Myles Lee Europe Americas Europe Materials Americas Materials Products & Distribution Products & Distribution Declan Doyle Tom Hill John Wittstock Joe McCullough Davy Irish Equities Conference, New York, 7 January 2005
Slide 8: Europe Materials
Europe Materials z Sales c €2.5bn z 360+ locations, 13 countries z 10,000+ employees z New build / RMI 80/20 z Residential 35% z Non-Res 30% z Infrastructure 35% Irl UK Spain Sw iss Port Pol Fin Est Lat Rus Ukr Tun Isr Cement 9 9 9 9 9 9 9 9 Aggregates 9 9 9 9 9 9 9 9 9 9 9 Asphalt 9 9 9 Readymix Co
Slide 9: Europe Products & Distribution
Europe Products & Distribution z Sales c €4bn z 620+ locations, 15 countries z 18,500+ employees z New build / RMI 55/45 z Residential 65% z Non-Res 25% z Infrastructure 10% Irl UK Por Sp Fr B NL Ger Swiss Den Sw Pol Fin Est Slov Concrete 9 9 9 9 9 9 9 Clay 9 9 9 9 Insulation 9 9 9 9 9 9 9 9 9 9 Bui
Slide 10: Americas Materials
Americas Materials z Sales c $3.5bn z 600+ locations, 28 states z 13,500+ employees z New build / RMI 30/70 z Residential 15% z Non-Res 20% z Infrastructure 65% New York / New England New Jersey Central West Aggregates 9 9 9 9 Asphalt 9 9 9 9 Readym ix Concrete 9 9 9 9 Davy Irish Equities Conference
Slide 11: Americas Products & Distribution
Americas Products & Distribution z Sales $4bn z 400+ locations z 44 US States z 4 Canadian Provinces z 2 South American Countries z 18,000+ employees z New build / RMI 55/45 z Residential 50% z Non-Res 40% z Infrastructure 10% USA Canada Argentina Chile Precast concrete products 9 9 Concrete blocks,
Slide 12: 2004 Development in Context
2004 2004 DEVELOPMENT DEVELOPMENT IN IN CONTEXT CONTEXT Davy Irish Equities Conference, New York, 7 January 2005 12
Slide 13: 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 14: CRH Development Spend 1994 - 2004
CRH Development Spend 1994 - 2004 €m Jura Group €330m Shelly Co. €347m Cementbouw 1800 100% Ops & JV €0.7bn 1600 Ibstock 49% €230m Finnsementti/Rudus €420m 1400 T. McCully €425m Secil €333m. 1200 Ibstock 51% €320m 1000 800 Tilcon US €253m 600 400 200 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 Dea
Slide 15: Europe Materials 2004 Development Spend €0.5bn
Europe Materials 2004 Development Spend €0.5bn z Portugal; a new geographic platform (‘03 sales €418m: CRH share €205m) Î 49% stake in Secil, shareholders agreement gives joint management control Î Major positions in Portuguese cement, aggregates and readymixed concrete markets Î Brings development
Slide 16: Europe P&D 2004 Development Spend €0.2bn
Europe P&D 2004 Development Spend €0.2bn z Concrete Products; significant additions to existing operations (sales €118m) Î Precast structural concrete manufacturer with operations in Belgium and France Î Paving, sewerage and water treatment producer with markets in Belgium and Holland Î Buy-out of o
Slide 17: Americas Materials 2004 Development Spend €0.15bn
Americas Materials 2004 Development Spend €0.15bn z New England; bolt-ons in Northern and Central Maine Î 2 deals enhancing reserves and market position z New York/New Jersey; major addition to aggregate reserves Î Aggregate/asphalt business in north-east NJ with 300m tons of permitted reserves Î 2
Slide 18: Americas P&D 2004 Development Spend €0.15bn
Americas P&D 2004 Development Spend €0.15bn z APG; 5 deals with annualised sales of US$125m plus 4 development CX projects Î 50% stake (plus put/call option) in leading Florida paving producer Î Manufacturer of retaining walls/masonry in fast growing Florida market Î Supplier of bagged lawn/garden p
Slide 19: Development Spend 1999 - 2004
Development Spend 1999 - 2004 €bn Europe Americas Total Materials 1.7 2.6 4.3 54% Products 1.3 1.3 2.6 33% Distribution 0.8 0.2 1.0 13% Total 3.8 4.1 7.9 100% 49% 51% 100% Davy Irish Equities Conference, New York, 7 January 2005 19
Slide 20: US Construction
US US CONSTRUCTION CONSTRUCTION Davy Irish Equities Conference, New York, 7 January 2005 20
Slide 21: US Housing Trends
US Housing Trends z Harvard housing group estimates need for 18.5-19.5m new homes in next decade z Driven by demographics Î Immigrants have accounted for more than a third of household growth since the ‘90s Î Women are increasingly heading up their own households z Soft landing in the housing market
Slide 22: US Non-Residential Building Construction
US Non-Residential Building Construction z Spending on non-residential building peaked in 1999/2000 Î Significant declines from peak through 2003 Î Modest recovery in 2004 US Non-Residential Building Construction 1980 - 2004 Forecast (constant $) 1980 = 100 160 140 120 100 80 60 40 20 0 '80 '81 '82
Slide 23: US Highway Funding Backdrop
US Highway Funding Backdrop z Background Î Federal Govt accounts for c 50% of highway investment: States and Local c 50% Î High road dependency, many in poor or mediocre condition Î General broad political support, highway funding has increased historically z State Highway Funding Î Federal projects
Slide 24: 2004 Trading Update Statement
2004 2004 TRADING TRADING UPDATE UPDATE STATEMENT STATEMENT Davy Irish Equities Conference, New York, 7 January 2005 24
Slide 25: 2004 Trading Update Statement: Group Overview
2004 Trading Update Statement Group Overview z Strong H1, as anticipated H2 more challenging z Substantial 71% increase in H1 PBT to €275m (2003: €161m) reflected: Î Strong organic growth due to more normal seasonal weather patterns Î Significant incremental contributions from acquisitions Î Minor a
Slide 26: 2004 Trading Update: Europe Materials
2004 Trading Update Statement Europe Materials z Ireland: Good volume growth, prices did not compensate for cost increases z Finland: Housing and infrastructure contributed to strong demand z Poland: Improved economy, reorganisation benefits, more normal weather patterns z Switzerland: Ongoing stron
Slide 27: 2004 Trading Update: Europe Products & Distribution
2004 Trading Update Statement Europe Products & Distribution z Overall makets subdued, H2 failed to sustain the somewhat firmer H1 tone z Concrete: Good growth despite some weak markets and rising costs z Sand Lime Brick: Excellent performance in first full year with CRH z Clay: Improved results thr
Slide 28: 2004 Trading Update: Americas Materials
2004 Trading Update Statement Americas Materials z Modest volume declines in asphalt offset by improvements in aggregates/rmc z Higher energy costs eroded the benefits of price improvements z Strong focus on cost reduction maintained US$ profits despite lower margins z New England: Similar profits,
Slide 29: 2004 Trading Update: Americas Products & Distribution
2004 Trading Update Statement Americas Products & Distribution z A strong year; continuing good residential and improving non-residential demand z Precast: Improved profits despite higher input costs z APG: Significant profit advance with good organic performance and acquisitions z Glass: Benefits f
Slide 30: Conclusion
CONCLUSION CONCLUSION Davy Irish Equities Conference, New York, 7 January 2005 30
Slide 31: CRH - Summary
CRH - Summary z Strong 2004; good organic growth plus significant acquisition contributions z For 2005, recovery of higher input costs remains a priority z Uncertainties in economies and currency markets continue z However with our relentless focus on operations, strong cash flow…. z ….comfortable i
Slide 32: Strategic Vision
STRATEGIC VISION Our strategic vision is consistent and clear …. “to be a leading international building materials group delivering superior performance and growth” Davy Irish Equities Conference, New York, 7 January 2005 32
Slide 33: 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