CRH PLC · NYSE:CRH
CRH — Investor Day (May 2004)
24 slides from CRH's investor day presentation, May 25, 2004
Slide 1: CRH Europe Distribution
CRH Europe Distribution CRH EUROPE DISTRIBUTION Stephan Nanninga - Managing Director Distribution Europe May 2004
Slide 2: CRH Distribution Worldwide
CRH DISTRIBUTION WORLDWIDE CRH Distribution Americas & Europe z 2003 Annualised sales*: €2.8 bn Distribution Group Presentation, 25 May 2004 z 442 locations z 8,500 employees US 35% Europe 65% * incl full year Cementbouw 2
Slide 3: CRH Distribution Americas
CRH DISTRIBUTION AMERICAS z 2003 sales: €1bn Distribution Group Presentation, 25 May 2004 z 123 locations z 2,500 employees Specialist Builders Merchants z No.2 US roofing & siding distributor z Developing “interior” product business Î Gypsum products Î Acoustical tile & grid 3
Slide 4: CRH Europe Distribution
CRH EUROPE DISTRIBUTION 2003 Annualised Sales* €1.8bn 3 Businesses z General Builders Merchants Broad product range Distribution Group Presentation, 25 May 2004 Targeting general contractors z Specialist Builders Merchants Focused product range Targeting specialist contractors z DIY Retail business
Slide 5: Europe Distribution Financials
EUROPE DISTRIBUTION FINANCIALS Sales Op. profit €m Sales and Operating Profit €m 1500 100 1250 Sales Distribution Group Presentation, 25 May 2004 80 1000 Op 60 Profit 750 40 500 20 250 0 0 1999 2000 2001 2002 2003 €m 1999* 2000 2001 2002 2003 CAGR 99-03 Sales 595 682 994 1,090 1,362 23% Operating pr
Slide 6: Europe Distribution Organisation
EUROPE DISTRIBUTION ORGANISATION CRH Europe Distribution S Nanninga / K vd Drift Distribution Group Presentation, 25 May 2004 Specialist General DIY Builders Merchants Builders Merchants A Huizing / K vd Drift S Nanninga / K vd Drift S Nanninga / K vd Drift Richner (CH) Sanitary & Ceramics Netherlan
Slide 7: General Builders Merchants
GENERAL BUILDERS MERCHANTS Netherlands Poland Distribution Group Presentation, 25 May 2004 z Joint No. 1 z Operating in fragmented z Countrywide Warsaw market coverage z 10 stores z 49 stores France z No. 2 in Île de France z 28 stores Switzerland z Samse/Doras: No.1 Burgundy, Rhone Alps z No.1 in G
Slide 8: General Builders Merchants
GENERAL BUILDERS MERCHANTS Netherlands Poland Distribution Group Presentation, 25 May 2004 Joint No. 1 Sales €0.8bn* z z Operating in fragmented z Countrywide Warsaw market coverage z 10 stores z 49 stores 51% 4% France 25% z No. 2 in Île de France 20% z 28 stores Switzerland z Samse/Doras: No.1 Bur
Slide 9: General Builders Merchants NL
GENERAL BUILDERS MERCHANTS NL Estimated Market Shares CRH* 17% Other 32% St Gobain 17% Distribution Group Presentation, 25 May 2004 Im abo** Bouw center** 11% 23% z Estimated Dutch BM market c €3bn * Includes cash & carry **Purchasing groups z CRH joint No.1, excluding purchasing groups z CRH & Ceme
Slide 10: General Builders Merchants FR
GENERAL BUILDERS MERCHANTS FR Estimated Market Shares Independents 14% Point P 22% Purchasing Reseau Pro groups 10% Distribution Group Presentation, 25 May 2004 31% Regional groups 23% z Estimated French BM market c €13bn z CRH No.2 in Île-de-France region z Samse and Doras have the No.1 position in
Slide 11: General Builders Merchants CH
GENERAL BUILDERS MERCHANTS CH Estimated Market Shares Other CRH 38% 27% HG Distribution Group Presentation, 25 May 2004 Sabag Com m ercial 10% 25% z Estimated Swiss BM market c €1.5bn. z German speaking Cantons cover 67% z BauBedarf (CRH) is No.1 in German speaking Switzerland z Focus on in-fill opp
Slide 12: Specialist Builders Merchants
SPECIALIST BUILDERS MERCHANTS Netherlands Cash & Carry (Bouwmaat) Supplying small contractors (12 Distribution Group Presentation, 25 May 2004 locations) Roofing (Kelders) Switzerland Leading roofing merchant (19 locations) Ceramic & Sanitaryware (Richner) Ironmongery No. 2 in German (Syntec) Strong
Slide 13: Specialist Builders Merchants
SPECIALIST BUILDERS MERCHANTS Netherlands Cash & Carry (Bouwmaat) Supplying small contractors (12 Distribution Group Presentation, 25 May 2004 locations) Sales €0.3bn* Roofing (Kelders) Switzerland Leading roofing merchant (19 locations) Ceramic & 42% Sanitaryware (Richner) 58% Ironmongery No. 2 in
Slide 14: DIY
DIY Netherlands z Member of Intergamma franchise z 2 Formulae Distribution Group Presentation, 25 May 2004 z Gamma: General DIY No.1 formula 86 stores z Karwei: Focused on decorative sector No.3 formula 30 stores Portugal Belgium z Maxmat JV z Gamma z Joint No.1 z No.2 formula z 16 stores z 14 store
Slide 15: DIY
DIY Netherlands z Member of Intergamma franchise z 2 Formulae Distribution Group Presentation, 25 May 2004 z Gamma: General DIY 72% No.1 formula 86 stores Sales €0.7bn* z Karwei: Focused on 18% decorative sector 3% 7% No.3 formula 30 stores Portugal Belgium z Maxmat JV z Gamma z Joint No.1 z No.2 fo
Slide 16: DIY NL
DIY NL Estimated Market Shares Sm all Shops Intergam m a 31% 36% Distribution Group Presentation, 25 May 2004 Vendex z Estimated Dutch DIY Sales c €4bn Other 26% 7% z Intergamma Franchise - Gamma/Karwei – clear market leader z Vendex - Praxis/Formido - a strong No. 2 z CRH has 116 of 236 Dutch Inter
Slide 17: Our Mission
OUR MISSION To build a leading pan-European distribution group... Distribution Group Presentation, 25 May 2004 z In mature economies z With top class regional positions z Supported by strong brands z Driven by focused and entrepreneurial management teams z Delivering superior margins 17
Slide 18: Key Success Factors
KEY SUCCESS FACTORS #1 CRITICAL MASS z Dense regional network z Location, clustering & strong brand recognition “Top of mind ” Distribution Group Presentation, 25 May 2004 z Economies of scales: purchasing, logistics & back office efficiency #2 BUSINESS FOCUS z Rigorous focus on margins z Tight work
Slide 19: General BM Strategy
GENERAL BM STRATEGY OPPORTUNITIES z European market rationalising Distribution Group Presentation, 25 May 2004 z Providing growth opportunities in existing and new regions z Central/Eastern Europe markets at early stage, not yet desirable STRATEGY z Strengthen portfolio of leading regional positions
Slide 20: General BM Strategy: By Region
GENERAL BM STRATEGY STRATEGY: BY REGION Netherlands Î Focus on in-fill opportunities from expanded base Distribution Group Presentation, 25 May 2004 Switzerland Î Ongoing margin improvement program Î In-fill existing position in German speaking area Î Seek new positions in French speaking region Fra
Slide 21: Specialist BM Strategy
SPECIALIST BM STRATEGY SPECIALIST MERCHANTS z Specialist merchants: “develop to core” activities Distribution Group Presentation, 25 May 2004 z To become sizeable pan-European businesses z Grow or exit 21
Slide 22: DIY Strategy
DIY STRATEGY OPPORTUNITIES z European regions largely consolidated z Limited potential in non-CRH regions; in-fill in existing regions Distribution Group Presentation, 25 May 2004 STRATEGY z Strengthen existing positions; examine opportunities in consolidated markets Benelux Î Take advantage of gree
Slide 23: In Conclusion
IN CONCLUSION.... So far …. z Rapid growth z Strong margin improvement Distribution Group Presentation, 25 May 2004 z Top class regional positions …. looking forward z Relentless focus on performance z Strengthen existing posititions z Growth to continue in rationalising markets Distribution - a str
Slide 24: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Distribution Group Presentation, 25 May 2004 Clondalkin Dublin 22 Ireland Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 E-mail: ir@crh.com or look up our Website - www.crh.com This results presentation contains certain forward-looking statements a