CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference 2007
23 slides from CRH's conference presentation, May 16, 2007
Slide 1: Performance and Growth
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Slide 2: Contents
Contents CRH Overview 2 Three Core Businesses 3 Geographic Presence 4 2006 Highlights 5 Dividend Strategy 6 Consistently Superior Performance 7 Development 1997 – 2007 ytd 9 Europe Materials – Recent Highlights 11 Europe Products – Recent Highlight 12 Europe Distribution – Recent Highlight 13 Americ
Slide 3: CRH Overview
CRH Overview 20% CAGR in Total Shareholder Return since 1970 International Building Materials Group Market Cap c.€19Bn, top 5 in sector worldwide Now in 28 countries; 3 continents; 3,300+ locations; 80,000+ people Annualised Sales over €20Bn focused on three core businesses ¾ Primary materia
Slide 4: Three Core Businesses
Three Core Businesses Primary Materials Building Products Distribution Precast concrete products; concrete blocks, pavers, rooftiles; clay bricks, pavers, tiles; insulation products; fencing & security; glass fabrication, rooflights & ventilation, construction accessories Cement, aggregates, asphalt
Slide 5: Geographic Presence
Geographic Presence Operating in 28 countries, 3,300+ locations, 80,000+ employees Davy Irish Equities Conference, May 16 2007 4
Slide 6: 2006 Highlights
2006 Highlights 14th consecutive year of profit growth € billion Sales Revenue 18.7 +30% Operating Profit 1.77 +27% Profit before Tax 1.60 +25% € cent Basic Earnings per Share 224 +20% Cash Earnings per Share 352 +20% Dividend per Share 52 +33% Davy Irish Equities Conference, May 16 2007 5
Slide 7: Dividend Strategy
Dividend Strategy 23rd consecutive year of dividend increase 2005 cover 4.8 times; aiming at c.3.5 times for 2008 First step 2006, dividend +33%, cover 4.3 times Expect further reductions in cover for 2007 and 2008 Subject as always to no major changes in market conditions No impact on dev
Slide 8: Consistently Superior Performance
Consistently Superior Performance 1,750 PBT 1,500 +17% 1,250 1,000 EPS +13% 750 DPS +14% 500 250 0 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Davy Irish Equities Conference, May 16 2007 7 Growth Index: 1989 = 100
Slide 9: Development
DEVELOPMENT Davy Irish Equities Conference, May 16 2007 8
Slide 10: Development 1997 – 2007 ytd
Development 1997 – 2007 ytd 2006 Record Acquisition spend exceeding €2 billion €m 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 To date* 600 400 200 0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Deals # 22 26 40 66 50 45 41 38 58 69 18 Davy Irish Equities Conference, May 16 2007 9 * Includes Gétaz-R
Slide 11: Development 2006 – 2007 ytd - €2.8 Bn
Development 2006 – 2007 ytd - €2.8 Bn €Bn Europe Americas Total % Materials 0.3 1.1 1.4 50% Products 0.4 0.4 0.8 28% Distribution* 0.4 0.2 0.6 22% Total 1.1 1.7 2.8 40% 60% Davy Irish Equities Conference, May 16 2007 10 * Includes Gétaz-Romang Switzerland, due to complete in May 2007
Slide 12: Europe Materials
Europe Materials Recent Development Highlights Initial steps into China & Turkey, new regional platforms RUSSIA KAZAKHSTAN MONGOLIA Harbin N.KOREA Beijing CHINA S.KOREA JAPAN INDIA Pacific Ocean Harbin Sanling Cement Denizli cement 0.65m tpa cement capacity 1.8m tpa cement + rmc Acquired
Slide 13: Europe Products
Europe Products Recent Development Highlight Halfen, leading European metal construction accessories producer Sales c. €0.2Bn – acquired May 2006 : 7.7x EBITDA CRH now No.1 in Construction Accessories in Europe Anchoring AnchoringTechnology Technology Façade FaçadeSystems Systems Fixing/Framin
Slide 14: Europe Distribution
Europe Distribution Recent Development Highlight Gétaz Romang, leading BM distributor in French-speaking Switz Sales CHF 0.9Bn (€0.5Bn) – closes May 2007; 8.4x EBITDA Excellent fit with CRH ops in German-speaking Switzerland Davy Irish Equities Conference, May 16 2007 13
Slide 15: Americas Materials
Americas Materials Recent Development Highlight APAC, Aug ‘06, major expansion into midwestern & southern US Substantial synergies; selective post-acq disposals Sales post-disposals $2.4Bn : 5.8x EBITDA multiple Existing CRH APAC Davy Irish Equities Conference, May 16 2007 14
Slide 16: Americas Products
Americas Products Recent Development Highlight MMI, April 2006, New Americas product platform 19 well positioned manufacturing facilities Fencing Fencing(45% (45%of ofSales) Sales) Sales $0.7Bn : 7.0x EBITDA multiple Construction ConstructionAccessories Accessories Welded WeldedWire WireReinfo
Slide 17: Americas Distribution
Americas Distribution Recent Development Highlights 8 acquisitions (2006: 6; 2007: 2) added $0.4Bn Sales : c.6x EBITDA Included expansions of Florida, Texas, Carolina and Hawaii Mainly focused on Interior Products segments Davy Irish Equities Conference, May 16 2007 16
Slide 18: Trading to Date & Outlook
TRADING TO DATE & OUTLOOK Davy Irish Equities Conference, May 16 2007 17
Slide 19: Europe Trading to date
Europe Trading to date Materials ¾ Favourable seasonal weather conditions in early months ¾ Continuing positive demand and pricing environment Products ¾ Improving economies (incl. Germany) & favourable building conditions ¾ Have contributed to marked uplift in operating performance Distributi
Slide 20: Americas Trading to date
Americas Trading to date Materials ¾ Severe Jan – Apr weather in contrast to mild 2006 ¾ H’way season just underway; encouraging backlogs/strong pricing env Products ¾ Challenging start; New-Res decline leading to tough H1 comps ¾ However, continuing benefits from ongoing Non-Res advance Distr
Slide 21: 2007 Outlook
2007 Outlook Europe ¾ Continuing positive backdrop for Europe Materials ¾ Ongoing improvements in Europe Products main markets ¾ Look to step up pace of organic profit growth in 2007 Americas ¾ Severe winter & New-Res decline will affect H1 comparatives ¾ However, comparatives in more important
Slide 22: Going Forward
Going Forward Continuation of our clear consistent strategic vision… be a responsible international leader in building materials delivering superior performance and growth Davy Irish Equities Conference, May 16 2007 21
Slide 23: 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