CRH PLC · NYSE:CRH
CRH — Citi Building Materials & Construction Conference 2009
30 slides from CRH's conference presentation, Nov 20, 2009
Slide 1: Citi Building Materials & Construction Conference
Citi Building Materials & Construction Conference 20th th November 2009 Glenn Culpepper Finance Director Citi Building Materials & Construction Conference, 20th November 2009 0
Slide 2: Agenda
Agenda 1 CRH – Group Overview 2 CRH – 2009 Trading & Outlook 3 CRH – Our North American Operations 4 CRH – Investment Highlights Citi Building Materials & Construction Conference, 20th November 2009 1
Slide 3: CRH … A Leading Player in the Building Materials Sector worldwide
CRH … A Leading Player in the Building Materials Sector worldwide 20 15 €bn 10 5 0 St Gobain Lafarge Holcim CRH Heidelberg Cemex Wolseley Vulcan Martin Italcementi W'berger Marietta No. No. 44 by by Market Market Capitalisation Capitalisation Citi Building Materials & Construction Conference, 20th N
Slide 4: CRH … A Leading Player in the Building Materials Sector worldwide
CRH … A Leading Player in the Building Materials Sector worldwide 35 Market Cap Debt 30 41% 51% 25 40% 20 €bn 15 65% 28% 54% 10 31% 5 65% 31% 25% 50% 0 Lafarge St Gobain Holcim Cemex Heidelberg CRH Wolseley Italcementi Vulcan Martin W'berger Marietta No. No. 66 by by EV EV … … … … with with the the
Slide 5: CRH... A Balanced Portfolio
CRH... A Balanced Portfolio Providing Building Materials for Our World Materials Products Products Distribution The Fundamentals Constructing Completing Fit-Out the Frame the Envelope and Renewal ¾Aggregates ¾Precast Concrete ¾Clay ¾Builders ¾Cement ¾Architectural ¾Glass Merchants ¾Roofing & Concret
Slide 6: CRH … Broad-based Exposure
CRH … Broad-based Exposure International and Balanced By Geography North Western Emerging America Europe Regions 45% 40% 15% By Product Heavyside 75% Lightside 25% Materials Concrete Other Distribution Products Products 60% 15% 10% 15% By Sector Residential Non-Residential Infrastructure 35% 35% 30%
Slide 7: Agenda
Agenda 1 CRH – Group Overview 2 CRH – 2009 Trading & Outlook 3 CRH – Our North American Operations 4 CRH – Investment Highlights Citi Building Materials & Construction Conference, 20th November 2009 6
Slide 8: CRH Interim Management Statement
CRH Interim Management Statement Third Quarter Trading and Cash Flow Recent economic and financial market news flow more positive than H1 Trading remains difficult; Q3 like-for-like Sales down c19% (H1: -21%) Rate of profit decline eased; cost benefits, lower energy than 2008 Q3 EBITDA down appr
Slide 9: Year-to-date Acquisitions
Year-to-date Acquisitions Focus on Heavyside, Compelling Value, Synergistic Fit H1 total development spend €280 million comprising: €224 million for 26% stake in Yatai Cement in northeastern China 6 further bolt-ons in our Materials and Distribution segments A further €50 million invested July 200
Slide 10: Net Debt further Reduced
Net Debt further Reduced Long debt maturities; Cash reserves/Undrawn facilities of €3bn September 2009 – Including JVs CRH Debt € Bn Undrawn Gross Debt by Maturity (incl. Derivatives) Committed Facilities Overdrafts 0.1 - 2009 0.2 0.2 2010 0.3 0.3 2011 0.6 0.4 2012 0.8 0.8 2013 0.5 0.1 2014 1.0 0.1
Slide 11: 2009 Outlook
2009 Outlook Expect approx. one-third decline in EBITDA (2008: €2.665Bn) Q4 EBITDA % decline likely to exceed Q3 Due to poor October weather and additional one-off cost effects Expect full year PBT in the range €0.73-0.76Bn (2008: 1.628Bn) After cost reduction implementation costs of c€200m* An
Slide 12: Summary
Summary While trading conditions remain extremely difficult Our businesses continue to generate strong cashflow And are focussed on commercial delivery Good benefits from ongoing Cost Savings programmes Strong B.Sheet supports development for compelling value and fit CRH CRH … … well well posit
Slide 13: Agenda
Agenda 1 CRH – Group Overview 2 CRH – 2009 Trading & Outlook 3 CRH – Our North American Operations 4 CRH – Investment Highlights Citi Building Materials & Construction Conference, 20th November 2009 12
Slide 14: CRH in North America
CRH in North America The largest integrated Building Materials Group 1978 – First Step Acquired Amcor a Utah-based concrete products manufacturer Today In Materials, Products & Distribution All 50 US States; 4 Canadian Prov. Residential Non- Non-Residential Infrastructure Infrastructure 25% 40% 3
Slide 15: Americas Materials
Americas Materials #1 Asphalt and a Top 3 Aggregates player Industry Comparisons: Jan-Sep 2009 Vols* CRH VMC MLM Aggregates (m tons) 83 117 97 Asphalt (m tons) 31 6 n/a RMC (m yd3) 5 3 n/a Seasonal Operational bias to H2: Volume split Q1 H1 Aggregates 15% 45% Res Non- Non-Residential Infrastructure
Slide 16: Americas Materials
Americas Materials Strong asset-backed business Aggregates Reserves (Bn tons) CRH VMC MLM Owned 9.1 6.5 7.5 Leased 2.3 4.0 5.6 Part Owned/Leased - 2.8 - Total 11.4 13.3 13.1 % Owned 80% 49% 57% CRH (US) Strategically located long-term aggregates reserves 11+ billion tons permitted to-date; 15+ bil
Slide 17: Americas Materials
Americas Materials Structured to service US Infrastructure demand Current underlying SAFETEA-LU funding for US Infra c$80Bn p.a. Funded 45:55 from Federal Programmes and State/Local budgets American Recovery & Reinvestment Act (ARRA) … Providing US$787Bn to the US economy over 2009 – 2012 Of which
Slide 18: Americas – Infrastructure Sector
Americas – Infrastructure Sector Federal Funding programmes 90 90 SAFETEA-LU ($227Bn highways) 80 80 expired 30-Sep-09 70 70 House T&I C’tee 60 60 proposes $337Bn 50 50 (+48%) Fed highway 4.0% CAGR funding over 6 yrs 40 40 8.0% CAGR Temporary extension 30 30 CAGR 3.8% in place to 18-Dec-09 20 20
Slide 19: Americas – Infrastructure Sector
Americas – Infrastructure Sector What ARRA means for Highways & Bridges – US$27.5Bn Mass Transit Airports / Ports / Coast Estimated timing of $27.5Bn spend $8.4 Guard $2.6 ¾’09 c$ 5.5Bn Discretionary Rail $1.5 ¾’10 c$ 12Bn $9.3 ¾’11 c$ 8Bn Highways / ¾’12 c$ 2Bn Bridges $27.5 $19.9Bn (75%) obligat
Slide 20: Americas Products & Distribution
Americas Products & Distribution #1 Concrete Products; #1 Glass/Glazing Systems, Top3 Distributor Business areas: ¾Architectural Concrete Products ¾Precast Concrete Products ¾Glass Fabrication ¾Engineered Glazing Systems Res Non- Non-Res Infra Infra ¾Construction Accessories 35% 55% 10% 10% ¾Exterio
Slide 21: Americas – Residential Sector
Americas – Residential Sector Indication of recovery commencing 2010 Starts 000's Housing Starts 1970 - 2014e population 2008 m 3,000 360 2,500 300 2,000 240 1,500 180 1,000 120 500 60 0 0 1970 1975 1980 1985 1990 1995 2000 2005 2010e Population Multi Family Starts Single Family Starts Total Starts
Slide 22: Americas – Non Residential Sector
Americas – Non Residential Sector ABI up from Jan-09 low; New projects inquiry highest since Sep-07 ABI Index 50 = Neutral ABI = Architectural Billings Index 2000 - 2009 Jan 2009 70 60 50 40 30 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Source: US ABI 2000 – Sep 2009 ABI A
Slide 23: Americas – Non Residential Sector
Americas – Non Residential Sector Indication of Non-Res recovery to lag Res by c12-24 mths US$ Bn Non-Residential v. Residential 1970 - 2014e 2008 350 300 250 200 150 100 50 1970 1975 1980 1985 1990 1995 2000 2005 2010e Non-Residential Residential(new) Source: 1970 – 2006 Dodge 2007 – 2014 PCA (Fall
Slide 24: Leveraging the Portfolio
Leveraging the Portfolio Integrated solutions for the Building Industry One supplier to … Advantage to the customer … Manufacture Early value-engineered savings Manage Less co-ordination of suppliers Deliver Less risk of delay … a sizeable component of the Better efficiency total project CRH
Slide 25: Leveraging the Portfolio
Leveraging the Portfolio Strategy in Action – The Dallas Cowboy Stadium 2009 Citi Building Materials & Construction Conference, 20th November 2009 24
Slide 26: Leveraging the Portfolio
Leveraging the Portfolio CRH companies provided … Glass Aluminium framing for all entrances Glass covering for all 400 luxury suites Aluminium frame and glass for hand/guard rails Precast Utility boxes and pads APG Waterproofing, concrete sealer, block fill speciality concrete Distribution Wallb
Slide 27: Summary – CRH in North America
Summary – CRH in North America No. 1 in North America No.1 Building Materials player with strong regional/national positions Prompt response to deteriorating market conditions 2007-2009 No. 1 supplier of materials for road construction in US Residential Non- Non-Residential Infrastructure Infrast
Slide 28: Agenda
Agenda 1 CRH – Group Overview 2 CRH – 2009 Trading & Outlook 3 CRH – Our North American Operations 4 CRH – Investment Highlights Citi Building Materials & Construction Conference, 20th November 2009 27
Slide 29: CRH Investment Highlights
CRH Investment Highlights Consistent strategy and growth record over c.40 years Geographic, sectoral and product balance a key strength Strong market positions and well located strategic reserves Experienced management team responding to the credit crisis Aggressive cost cutting, debt reduction
Slide 30: 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 s
CRH — Citi Building Materials & Construction Conference 2009 on 6ix