Crh Plc · NYSE:CRH
Crh — Investor Day (October 2004)
20 slides from Crh's investor day presentation, Oct 27, 2004
Slide 1: Americas Products & Distribution Divisional Profile
Americas Americas Products Products & & Distribution Distribution Divisional Divisional Profile Profile Joe Joe McCullough McCullough Analysts / Investor Briefing, 27 October 2004 1
Slide 2: Americas Products & Distribution
Americas Products & Distribution Financials $m 2003 2002 2001 Sales 3,600 3,110 2,902 44 US States Operating Profit 303 276 256 4 Canadian Avg Net Assets 1,803 1,543 1,325 Provinces Operating Margin 8.4% 8.9% 8.8% South America 1% 2% 2003 2003 Sales APG 20% Op. Profit 31% 39% Precast 45% Glass Distr
Slide 3: Americas Products & Distribution - Organisation
Americas Products & Distribution - Organisation Chief Executive Officer John Wittstock 31/10 Joe McCullough 01/11 Finance Development Michael O'Driscoll David Clark Architectural Precast Glass Distribution South Products America Doug Black Jim Schack Ted Hathaway Michael Lynch Juan Carlos Girotti An
Slide 4: Americas Products & Distribution - Development
Americas Products & Distribution - Development Sales Development Spend, Sales and EBITA EBITA/Dev Spend $m $m 3600 Hoffers Northfield Block 400 Matt Stone 3200 Glen-Gery 350 2800 CCN Buyout 300 Permacon 2400 Allied 250 2000 Distribution HGP Glass (50%) CCN (20%) 200 1600 HGP Glass 150 1200 (50%) 100
Slide 5: Dodge Construction Index
Dodge Construction Index 190 180 170 160 150 140 130 120 110 100 90 Jan-97 Jan-99 Jan-00 Jan-02 Jan-04 Jan-98 Jan-01 Jan-03 Monthly Rolling Average z Composite index from F.W. Dodge (contract data) z Base: 1996 Monthly average =100 z Recovery evident since early-2003 Analysts / Investor Briefing, 27
Slide 6: Architectural Products
Architectural Products Analysts / Investor Briefing, 27 October 2004 6
Slide 7: Architectural Products - Review
Architectural Products - Review z 2003 Sales $1,390m z Operating Margin c 10% z 34 US States, 2 Canadian Provinces z Concrete products Î # 1 masonry, paving, patio in US Î # 1 paving, patio in Canada z Prepackaged concrete mixes Î # 2 in US z Clay bricks, pavers, tiles Î # 1 brick producer in NE US
Slide 8: Precast
Precast Analysts / Investor Briefing, 27 October 2004 8
Slide 9: Precast - Review
Precast - Review z 2003 Sales $600m z Operating Margin c 8% z 23 US States z 1 Canadian Province z Precast concrete products Î # 1 in US Strategy Strategy Product end-use z Geographic in-fill and penetration z Geographic in-fill and penetration 10% 15% z Broaden product range for growth sectors z Br
Slide 10: Glass
Glass Analysts / Investor Briefing, 27 October 2004 10
Slide 11: Glass - Review
Glass - Review z 2003 Sales $450m z Operating Margin c 12% z 20 US States z 4 Canadian Provinces z Glass fabrication Î # 1 US architectural glass fabricator Strategy Strategy Product end-use z Develop proprietary products across the z Develop proprietary products across the building buildingenvelope
Slide 12: Distribution
Distribution Analysts / Investor Briefing, 27 October 2004 12
Slide 13: Distribution - Review
Distribution - Review z 2003 Sales $1,115m z Operating Margin c 5% z 28 US States z 125 Branches Î # 2 US roofing/siding distributor Strategy Strategy Product end-use z Create leading positions in major metros z Create leading positions in major metros z Focus on core products z Focus on core produc
Slide 14: South America
South America Analysts / Investor Briefing, 27 October 2004 14
Slide 15: South America - Review
South America - Review z 2003 Sales $45m z Operating Margin c 13% z Argentina Î # 1 clay rooftiles Î # 3 wall and floor tiles z Chile Î glass fabrication Strategy Strategy Product end-use z Focused growth of existing operations z Focused growth of existing operations z Explore export opportunities t
Slide 16: Development In Action - APG
Development In Action - APG Goal is national development in multiple but interrelated product/market segments Analysts / Investor Briefing, 27 October 2004 16
Slide 17: APG Evolution: 1979 - Sales $10m
APG Evolution: 1979 - Sales $10m New Build Segment Non-residential Customers Contractors Market Local Brand Company Products Masonry Analysts / Investor Briefing, 27 October 2004 17
Slide 18: APG Evolution: 1991 - Sales $108m
APG Evolution: 1991 - Sales $108m New Build RMI (Professional) RMI (Retail) Segment Commercial Residential DIY Residential Customers Contractors Distributors Homecenters Market Local Local National/Regional Brand Company Company Company Products Masonry Pavers Patio Products Pavers Formation of Prod
Slide 19: APG Evolution: 2003 - Sales $1.4bn
APG Evolution: 2003 - Sales $1.4bn New Build RMI (Professional) RMI (Retail) Segment Commercial Residential DIY Residential Infrastructure Customers Contractors Distributors Homecenters Home Builders Large Contractors Mass Merchants Home Builders Market Local Local National/Regional Brand Company Co
Slide 20: Summary
Summary z Leading positions in each product group Î Internal growth opportunities z Increased focus on margin improvement and recovery of higher input costs z Sufficient growth opportunities exist in each group: valuations a challenge Î Greenfield strategy in APG, Distribution Î Edge-out Glass, Prec