CRH PLC · NYSE:CRH
CRH — UBS European Conference 2011
26 slides from CRH's conference presentation, Nov 15, 2011
Slide 1: UBS European Conference 2011
UBS European Conference 2011 M YLES L EE C HIEF E XECUTIVE 1 5 TH N OVEMBER 2 0 1 1
Slide 2: Agenda
1 Agenda CRH Overview & Strategy CRH YTD Trading & FY Outlook CRH Share Listing Amendments Wrap-up Contact Us UBS European Conference 2011, 15th November 2011
Slide 3: CRH Overview & Strategy
2 CRH O VERVIEW & S TRATEGY UBS European Conference 2011, 15th November 2011
Slide 4: CRH Overview
3 CRH Overview CRH ………….……. a diversified, international building materials Group Scale …….…..……. 35 countries; 3,600 locations; 75k people; Sales €17+Bn (2010) Long-term …….… record of delivering superior shareholder return Listed …………………London (CRH LN), Dublin (CRH ID), and NYSE (CRH US) Market Ca
Slide 5: CRH – An International Group – 35 Countries
4 CRH – An International Group – 35 Countries Strong developed world base (85% Group EBITDA) Growing presence in developing economies (15% Group EBITDA) UBS European Conference 2011, 15th November 2011
Slide 6: CRH – A Sector Leader Worldwide
5 CRH – A Sector Leader Worldwide € Bn Building Materials Sector EVs 30 42% 68% Debt % EV Net Debt Mkt Cap 25 42% 20 79% 58% 31% 15 10 8% 40% 5 22% 35% 0 2011e St Gobain Lafarge Holcim Cemex H'berg CRH CRH Wolseley Vulcan Martin W'berger Net Debt 1.4x 3.6x 2.8x 7.0x 3.4x 2.0x 0.7x 7.8x 2.6x 1.4x EBI
Slide 7: CRH – A Proven Business Model
6 CRH – A Proven Business Model Outstanding long-term record of performance & growth Based on: Balanced portfolio Leadership positions Distinct organisational approach Strong cash generation Rigorous capital allocation Focus on shareholder returns Unique dividend record A disciplin
Slide 8: CRH Balance – Expanding Geographic Footprint
7 CRH Balance – Expanding Geographic Footprint 1980 1990 2000 2010 Ireland W.Europe USA Emerging Strong positions in developed markets Growing presence in emerging economies UBS European Conference 2011, 15th November 2011 Basis: Annualised EBITDA
Slide 9: CRH Balance – Exposure to Multiple Demand Drivers
8 CRH Balance – Exposure to Multiple Demand Drivers Materials Products Distribution Cement & Aggregates Products for General Merchants Asphalt & Paving Construction Solutions Specialised Distribution Readymixed Concrete Do-It-Yourself Early Cycle Servicing the breadth of construction Late Cycle New
Slide 10: CRH – The International Building Materials Group
9 CRH – The International Building Materials Group Geography Nth America 45% Europe 40% Emerging 15% Product Materials 60% Products 23% Distribution 17% Sector Infra 35% Non-Res 30% Res 35% End-Use New 55% RMI 45% A Balanced Business by Geography, Product, Sector and End-Use UBS European Conference
Slide 11: CRH – Leadership Positions
10 CRH – Leadership Positions Europe United States Emerging Top 10 Cement No. 1 Asphalt No. 1 Building Materials Region Aggregates & No. 3 Aggregates in Poland Leader RMC Top 5 RMC No. 1 Cement (26%) No.1 Concrete Northeastern Products No. 1 Concrete China No. 1 Construction Products Accessories No.
Slide 12: CRH Balance – The Benefits
11 CRH Balance – The Benefits GDP RoIC Growth 9% 15% 6% 10% 3% 5% 0% 0% 1990 1995 2000 2005 2008 2010 -3% -5% European Union GDP United States GDP ROIC -6% -10% Relative Stability of Returns in Normal Market Cycles UBS European Conference 2011, 15th November 2011 IMF World Economic Outlook Database,
Slide 13: CRH Balance – The Benefits
12 CRH Balance – The Benefits GDP RoIC Growth 9% 15% 6% 10% 3% 5% 0% 0% 1990 1995 2000 2005 2010 -3% -5% European Union GDP United States GDP ROIC -6% -10% Most Severe Recession Since 1930’s UBS European Conference 2011, 15th November 2011 IMF World Economic Outlook Database, Sep 2011
Slide 14: 2008-10 Downturn - Short-term Tactical Response …
13 2008-10 Downturn - Short-term Tactical Response … Significant variable cost reductions as volumes declined Fixed cost savings from organisational restructuring Active approach to cash generation Reductions in working capital / capital expenditure More measured acquisition approach (from
Slide 15: … Combined with Structural Changes
14 … Combined with Structural Changes Increased co-ordination to maximise the benefits of CRH’s operational footprint Group-wide initiatives focussed on: Operational & Commercial excellence Top line sales growth Purchasing Developing our people Health & Safety improvements Review of
Slide 16: Core Elements of Long-Term CRH Strategy Unchanged
15 Core Elements of Long-Term CRH Strategy Unchanged Balance remains the key By geography, sector end-use, new build vs. repair & maintenance (RMI) Continued “Build & Grow” approach Creating clustered groups of businesses Rigorous value-based approach to development The priority – superi
Slide 17: CRH YTD Trading & 2011 Outlook
16 CRH YTD T RADING & 2011 O UTLOOK UBS European Conference 2011, 15th November 2011
Slide 18: YTD (Sept) 2011: Sales +5%; EBITDA in line with 2010
17 YTD (Sept) 2011: Sales +5%; EBITDA in line with 2010 Q3 like-for-like Sales up +4%; (H1 up +5%) Q3 overall Sales up +3%; YTD September up +5% Q3 EBITDA €0.65Bn (2010: €0.7Bn) E.Distribution, A.Products, A.Distribution ahead of 2010 E.Materials in line, E.Products and A.Materials lower
Slide 19: 2011 Outlook: Expect Full Year EBITDA of c€1.6 Bn
18 2011 Outlook: Expect Full Year EBITDA of c€1.6 Bn Q4 2011 EBITDA expected to be similar to 2010 (2010: €0.4Bn) To give full year EBITDA of approx. €1.6Bn (2010: €1.6Bn) Expect €20-50 million increase in pre-impairment PBT (2010: €658 million) FY impairment charges expected to be significa
Slide 20: YTD (Nov) 2011: Acquisition spend c€0.45 Bn
19 YTD (Nov) 2011: Acquisition spend c€0.45 Bn €Bn H1 2011 H2 to-date Year-to-Date Europe / Asia 0.03 0.19 0.22 Americas 0.13 0.10 0.23 Total 0.16 0.29 0.45 H2 to-date spend well ahead of H1 Acquisition (Aug) of VVM Cement grinding/RMC operations in Belgium Further bolt-on activity (4 transactio
Slide 21: CRH Share Listing Amendments
20 CRH S HARE L ISTING A MENDMENTS UBS European Conference 2011, 15th November 2011
Slide 22: Realignment of Ireland & UK Share Listings
21 Realignment of Ireland & UK Share Listings CRH’s operations, profile and shareholder base have grown internationally Majority of trading in CRH shares is now in London (LSE and MTFs) November 8th announcement to realign share listings Premium listing on LSE retained; CRH shares to trade i
Slide 23: Presents Opportunity for FTSE UK Index Series Inclusion
22 Presents Opportunity for FTSE UK Index Series Inclusion Timetable 8 Nov: FTSE Nationality Committee decision … confirmed 9 Nov: CRH trading on LSE switches from EUR to GBp … confirmed 6 Dec: Reclassification of Irish listing effective 7 Dec: FTSE Index Review Committee meets 16 Dec: New
Slide 24: Wrap-up
23 W RAP - UP UBS European Conference 2011, 15th November 2011
Slide 25: CRH – Well Positioned
24 CRH – Well Positioned Financial Operational Strong cashflow & Credit rating Decisive action through downturn Excellent debt maturity profile c40% savings permanent in nature Access to global capital markets Ops better balanced to demand Significant development capacity With sustainable benefits i
Slide 26: Contact Us
25 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 This presentation contains certain forward-looking statements as defined under US legislation. By their Website: www.crh.com nature, such statements in