Crh Plc · NYSE:CRH
Crh — Non-Deal Roadshow (May 2007)
13 slides from Crh's roadshow presentation, May 23, 2007
Slide 1: Europe Materials Developing Regions
CRH plc Investor/Analyst Visit Switzerland 23–25 May, 2007 Europe Materials Developing Regions Albert Manifold, Managing Director Designate, Europe Materials Investor/Analyst Swiss Visit, 23- 23-25 May 2007 1
Slide 2: CRH Development Strategy
Developing Regions CRH Development Strategy Initial focus on Cement ¾ Proven entry point for CRH in emerging economies (e.g. Poland, Ukraine) ¾ Meaningful first presence in industry with improving market practices ¾ Leverage CRH technical & commercial knowledge ¾ Strong platform to grow downstream
Slide 3: Turkey Country Overview
Turkey Country Overview Large geographic area RUSSIA ¾ 2x size Poland, 785K km2 ¾ 73M people, growing at 1.4% p.a. ¾ 50% of population under 25 years Strong economic growth ¾ Among highest in OECD ¾ GDP growth +7% CAGR since 2002 ¾ Continued reform, outlook positive ¾ FDI of US$20bn in 2006 Se
Slide 4: Turkey Construction Market Overview
Turkey Construction Market Overview Strong recent construction growth Turkey: Cement Volumes 2001 - 2006E Domestic ¾ Linked to strong economic growth….. Exports 45.0 ¾ …..still accounts for only c. 6% GDP 40.0 ¾ Lower interest rates & new mortgage 35.0 30.0 system driving Res. construction 25.0 20
Slide 5: Turkey Aegean Region
Turkey Aegean Region Located along Southwestern coast RUSSIA ¾ Higher growth rates than the rest of Turkey ¾ Growing industrial/manufacturing base ¾ Expanding centre for tourism Denizli Key Market Area for Denizli: ¾ City of Denizli, population of c. 0.5 m ¾ Population of c. 13M within 200km rad
Slide 6: Denizli Cement
Turkey Denizli Cement Acquisition of 50% of Denizli Cement ¾ Completed April 2007 ¾ Integrated cement & readymixed concrete business ¾ Market leader in Aegean region ¾ First-class partner & management team ¾ Joint management control ¾ Pre-emption rights Excellent Assets ¾ Modern cement plant, 1.
Slide 7: China Country Overview
China Country Overview Population of 1.3 billion ¾ Concentrated in south & east ¾ Growing to 1.5 billion by 2050 ¾ 100+ cities with over 1 m people A rapidly changing society ¾ 39% urban to 50% by 2010 ¾ 15 m moving to cities each year ¾ Reducing household sizes (1993: 4.1 persons, 2003: 3.4) ¾
Slide 8: China Construction Market Overview
China Construction Market Overview 280 World’s largest cement market Output in constant 2000 prices Forecast ¾ 1.2 Bn tonnes, 50%+ of global total 240 ¾ Volume growth of c.16% in 2006 200 ¾ 950kg/person (US:400kg, India:150kg) 160 A fragmented industry ¾ Top 10 players c.15% of production 120 ¾
Slide 9: China Regional Strategy
China Regional Strategy Regional Strategy China’s 32 Provinces ¾ Reviewed China’s 32 provinces over a 2-year period…… Heilongjiang ¾ …..to identify the most suitable regions Jilin and cement market(s) Liaoning We identified a number of provinces that satisfied key criteria ¾ Economic & construct
Slide 10: Focus on Northeast China
China Focus on Northeast China Northeast China RUSSIA ¾ Heilongjiang, Jilin and Liaoning KAZAKHSTAN ¾ 1950s industrial heartland MONGOLIA Harbin ¾ “Northeast Revival”….govt. commitment N.KOREA to modernise infrastructure & industry Beijing CHINA S.KOREA JAPAN Heilongjiang Province ¾ Pop. 38 m, l
Slide 11: Harbin Sanling Cement
China Harbin Sanling Cement 100% Asset Acquisition ¾ Completed February 2007 Plant located 45km from Harbin ¾ 2 modern dry-process kilns ¾ Includes a new line (installed 2004) ¾ Cement Capacity of 0.65 m tpa A solid first step for CRH in China ¾ Strong regional market growth ¾ Good local manag
Slide 12: Next Steps
China Next Steps Continue focus on Northeast cement…..Jilin Yatai ¾ Regional cement leader in Northeast China (Top 10 in China, c. 9 m tpa) ¾ Signed LOI in October 2006 to acquire 26% equity, option to go to 49% ¾ ……ongoing negotiations Other Regions ¾ Identify & pursue individual cement opportu
Slide 13: New Regions: Potential Further Development Fronts
New Regions Potential Further Development Fronts Russia ¾ A number of “clusters” in focus: • Southern Federal District • Yekaterinburg area, Kazakhstan, etc • Far-eastern Russia…..Vladivostok ¾ Heavy Building Materials …..cement, lime, etc. India ¾ Large, growing market ¾ Cement demand c. 150kg/