CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference, New York, January 2004
34 slides from CRH's conference presentation, January 2004
Slide 1: Davy Irish Equities Conference, New York, January 2004
CONTENTS Agenda 2 Davy Irish Equities Conference, New York, January 2004 CRH - Overview 4 Clear Development Strategy 5 Acquisition Approach 6 Federal Group Organised for Growth 7 Europe Materials 8 Europe P&D 9 Americas Materials 10 Americas P&D 11 CRH Acquisition Spend 1987 - 2003 13 Europe Materia
Slide 2: Agenda
Davy Irish Equities Conference, New York, January 2004 AGENDA z CRH Overview z 2003 Acquisitions in Context z US Construction z 2003 Trading Update Statement 2
Slide 3: CRH Overview
Davy Irish Equities Conference, New York, January 2004 CRH OVERVIEW 3
Slide 4: CRH - Overview
CRH - OVERVIEW z 1970: Irish Cement & Roadstone: Sales €25m, Ireland 95% Davy Irish Equities Conference, New York, January 2004 z Embarked on a clear, consistent development strategy z Now 23 countries; 3 continents; 1,800+ locations; 55,000+ people z Sales c. €11bn across three core businesses: Î P
Slide 5: Clear Development Strategy
CLEAR DEVELOPMENT STRATEGY z Stick to core businesses in building materials Davy Irish Equities Conference, New York, January 2004 z Invest at “home”; be the low cost market leader z Develop “overseas”; create platforms for future growth z Pay fair prices that meet sellers needs z 14 devolved region
Slide 6: Acquisition Approach
ACQUISITION APPROACH z Identifying deals Davy Irish Equities Conference, New York, January 2004 Î Ongoing contact with extensive 25 year+ target database Î Each deal done opens doors to further opportunities Î CRH scale ensures access to all larger industry transactions z Courtship / negotiation Î P
Slide 7: Federal Group Organised for Growth
Davy Irish Equities Conference, New York, January 2004 FEDERAL GROUP ORGANISED FOR GROWTH CRH plc CEO Liam O’Mahony Finance Development Myles Lee Joe McCullough Europe Americas Europe Materials Americas Materials Products & Distribution Products & Distribution Declan Doyle Tom Hill Brian Hill John W
Slide 8: Europe Materials
EUROPE MATERIALS z Sales c. €2bn Davy Irish Equities Conference, New York, January 2004 z 350+ locations; 11 countries z 9,500+ employees z New build / RMI 80/20 z Residential 35% z Non-Res 30% z Infrastructure 35% Irl UK Spain Swiss Pol Fin Est Lat Rus Ukr Isr Cement 9 9 9 9 9 9 Aggregates 9 9 9 9
Slide 9: Europe Products & Distribution
EUROPE PRODUCTS & DISTRIBUTION z Sales c. €4bn (incl. Cementbouw) Davy Irish Equities Conference, New York, January 2004 z 500+ locations; 15 countries z 18,000+ employees z New build / RMI 60/40 z Residential 60% z Non-Res 30% z Infrastructure 10% Irl UK Por Sp Fr B NL Ger Swiss Den Sw Pol Fin Est
Slide 10: Americas Materials
AMERICAS MATERIALS z Sales c. $3bn Davy Irish Equities Conference, New York, January 2004 z 550+ locations; 29 states z 13,000+ employees z New build / RMI 30/70 z Residential 15% z Non-Res 20% z Infrastructure 65% New York / New England New Jersey Central West Aggregates 9 9 9 9 Asphalt 9 9 9 9 Rea
Slide 11: Americas Products & Distribution
AMERICAS PRODUCTS & DISTRIBUTION z Sales c. $3.5bn Davy Irish Equities Conference, New York, January 2004 z 380+ locations z 43 US states z 4 provinces z S Americas z 16,000+ employees z New build / RMI 55/45 z Residential 45% z Non-Res 40% z Infrastructure 15% USA Canada Argentina Chile Precast con
Slide 12: 2003 Acquisitions in Context
Davy Irish Equities Conference, New York, January 2004 IN CONTEXT 2003 ACQUISITIONS 12
Slide 13: CRH Acquisition Spend 1987-2003
CRH ACQUISITION SPEND 1987-2003 Cementbouw Davy Irish Equities Conference, New York, January 2004 €m Jura Group €330m 100% Ops & JV €693m 1600 Shelly Co. €347m 1400 Ibstock 49% €230m Finnsementti/Rudus €420m 1200 T. McCully €425m 1000 Ibstock 51% €320m 800 600 Tilcon US €253m 400 Beton Catalan €77m
Slide 14: Europe Materials 2003 Acquisition Spend
EUROPE MATS 2003 ACQUISITION SPEND €46m z Finland; expansion of aggregates and readymix concrete ops Davy Irish Equities Conference, New York, January 2004 Î Veljekset Turpeinen, one rock quarry and four sand and gravel pits Î NCC Tampere and Betokari, readymix concrete businesses Î Further strength
Slide 15: Europe P&D 2003 Acquisition Spend
EUROPE P&D 2003 ACQUISITION SPEND €1bn z Concrete Products; a year of significant progress Davy Irish Equities Conference, New York, January 2004 Î Added new territories; Slovakia (Premac) and Denmark (Betonelement) Î Expansion of Belgian structural and utility ops (Maessen and Duffeleer) Î Expansio
Slide 16: Europe P&D 2003 Acquisition Spend
EUROPE P&D 2003 ACQUISITION SPEND €1bn z Insulation; now a leader in European foam insulation Davy Irish Equities Conference, New York, January 2004 Î Acquired major expanded polystyrene (EPS) producer (Unidek) Î With leading positions and excellent facilities in Benelux/Germany Î Ideal fit with EPS
Slide 17: Europe P&D 2003 Acquisition Spend
EUROPE P&D 2003 ACQUISITION SPEND €1bn z Distribution; a landmark year in Benelux Davy Irish Equities Conference, New York, January 2004 Î Cementbouw added 54 DIY and 36 Builders Merchants stores Î 3 Bolt-ons, Bricorama, Heeren and Leuven, added 16 DIY stores Î Now 129 DIY stores - c. 16% of Dutch D
Slide 18: Cementbouw
Davy Irish Equities Conference, New York, January 2004 CEMENTBOUW z Acquired 100% of DIY, Merchanting and Building Products for €646m Î DIY - second largest franchisee of Intergamma Î Merchanting - major builders merchant in the Netherlands Î Building Products - sand lime brick, concrete & clay prod
Slide 19: Americas Materials 2003 Acquisition Spend
AMERICA MATS 2003 ACQUISITION SPEND €276m z Central Group; significant strengthening of market positions Davy Irish Equities Conference, New York, January 2004 Î S.E. Johnson (May €189m), excellent fit with existing OH/MI ops Î Offering considerable synergies and strong reserves backing Î SEJ non-co
Slide 20: Americas P&D 2003 Acquisition Spend
AMERICAS P&D 2003 ACQUISITION SPEND €255m z APG; record spend - strategic entry to new markets + bolt-ons Davy Irish Equities Conference, New York, January 2004 Î Record spend of €192m on 6 deals Î Illinois; 4 masonry plants serving Chicago metro market (Northfield Block) Î Wisconsin; Three plants i
Slide 21: Americas P&D 2003 Acquisition Spend
AMERICAS P&D 2003 ACQUISITION SPEND €255m z Glass Group; product and geographic expansion Davy Irish Equities Conference, New York, January 2004 Î Arizona producer of custom aluminum storefront glazing systems Î Expand product offering in branded entrance systems Î Acquisition in the attractive Mont
Slide 22: Development Spend 1999-2003
Davy Irish Equities Conference, New York, January 2004 DEVELOPMENT SPEND 1999-2003 €bn Europe Americas Total Materials 1.1 2.4 3.5 53% Products 1.3 1.0 2.3 34% Distribution 0.7 0.2 0.9 13% Total 3.1 3.6 6.7 100% 46% 54% 100% 22
Slide 23: US Construction
Davy Irish Equities Conference, New York, January 2004 US CONSTRUCTION 23
Slide 24: US Housing Trends
US HOUSING TRENDS z Harvard housing group estimates need for 16m new homes in coming decade: Davy Irish Equities Conference, New York, January 2004 Î Driven by demographics including immigration Î Supported by solid, innovative financing sector i.e. Fannie Mae and Freddie Mac z Current strong housin
Slide 25: US Non-Res Construction Trends
US NON-RES CONSTRUCTION TRENDS z Spending on non-residential buildings peaked in 1999/2000 Davy Irish Equities Conference, New York, January 2004 Î Significant declines from peak through 2003 Î Modest recovery expected to commence in 2004 Non-Residential Buildings Construction 1980 - 2003 Forecast (
Slide 26: SAFETEA
SAFETEA - (SAFE, ACCOUNTABLE, FLEXIBLE & EFFICIENT TRANSPORTATION EQUITY ACT OF 2003) SAFETEA - successor to TEA-21 which now expires Feb 2004 Davy Irish Equities Conference, New York, January 2004 z z TEA-21 provided $31.6bn of Federal Highway Funding in 2003 z Varying SAFETEA proposals for core hi
Slide 27: 2003 Trading Update Statement
Davy Irish Equities Conference, New York, January 2004 STATEMENT 2003 TRADING UPDATE 27
Slide 28: 2003 Trading Update Statement - Group Overview
2003 TRADING UPDATE STATEMENT Group Overview Davy Irish Equities Conference, New York, January 2004 z US$ decline a major feature of 2003 Î 2003 average US$/euro rate 1.1312 (2002: 0.9456) Î At average 2003 FX rates, 2002 PBT €856m would be €86m lower z Despite translation hit, expect 2003 PBT broad
Slide 29: 2003 Trading Update Statement - Europe Materials
2003 TRADING UPDATE STATEMENT Europe Materials Davy Irish Equities Conference, New York, January 2004 z Irish construction output similar to 2002; residential very strong z After slow start Polish/Finnish cement volumes recovered well z Higher cement volumes in Switzerland due to major infrastructur
Slide 30: 2003 Trading Update Statement - Europe Products & Distribution
2003 TRADING UPDATE STATEMENT Europe Products & Distribution Davy Irish Equities Conference, New York, January 2004 z With weak backdrop, legacy operations will broadly match 2002 z Reflects benefits of restructuring, cost controls z Acquisitions will result in strong profit advance z Concrete: full
Slide 31: 2003 Trading Update Statement - Americas Materials
2003 TRADING UPDATE STATEMENT Americas Materials Davy Irish Equities Conference, New York, January 2004 z Record wet weather, despite H2 recovery heritage volumes down z Higher energy costs largely recovered through improved pricing z US$ operating profits ahead; heritage declines more than offset b
Slide 32: 2003 Trading Update Statement - Americas Products & Distribution
2003 TRADING UPDATE STATEMENT Americas Products & Distribution Davy Irish Equities Conference, New York, January 2004 z Good outcome despite wet spring and weak commercial markets z Precast: ongoing cost cutting maintained margins and profits z APG: growth in hardscape/homecentre market & record dev
Slide 33: Summary
Davy Irish Equities Conference, New York, January 2004 SUMMARY z Strong 2003 performance despite difficult backdrop z Ongoing strong cash flow and comfortable interest cover z Sustained focus on cost control and efficiency improvements z Uncertainties in economies and currencies, but …. z …. facing
Slide 34: Contact Us
CONTACT US CRH plc Davy Irish Equities Conference, New York, January 2004 Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 E-mail: ir@crh.com or look up our Website - www.crh.com CRH® is a registered Trade Mark of CRH plc 34
CRH — Davy Irish Equities Conference, New York, January 2004 on 6ix