Crh Plc · NYSE:CRH
Crh — Non-Deal Roadshow (October 2005)
16 slides from Crh's roadshow presentation, October 2005
Slide 1: Oldcastle Materials
Oldcastle Materials Tom Hill CEO Investor / Analyst Visit, October 2005 1 o
Slide 2: Overview
Overview $3.5bn $3.5bn Sales Sales(2004) (2004) 15.3% 15.3% 5-yr 5-yr SalesCAGR Sales CAGR 9.7% 9.7% Op. Op.Margin Margin(2004) (2004) 650 650 Locations Locations 28 28 US USStates States +13,800 Employees +13,800 Employees 15 15::20 20::65 65 Res/Non-res/Infra Res/Non-res/Infra 30 30::70 70 New/RMI
Slide 3: History
History EBITA/De v s pe nd Sale s US$m Development Spend, Sales, EBITA US$m Shelly Mt Hope 700 4000 Thompson Ohio NJ McCully Michigan US Aggregates 3500 600 West/Central Tilcon New England 3000 500 NY/NJ SE Johnson Ohio/Michigan 2500 400 2000 300 1500 200 1000 100 500 0 0 1990 1991 1992 1993 1994 19
Slide 4: Regional Development
Regional Development NY NY // NJ NJ 1985 1985 -- 2005 2005 New New England England 1988 1988 -- 2005 2005 West Central Central West 1995 1992 1992 -- 2005 2005 1995 -- 2005 2005 Regional RegionalOrganization Organizationsince since2003 2003 Investor / Analyst Visit, October 2005 4 o
Slide 5: Products & Customers
Products & Customers Aggregates Infrastructure • Highways • Roads Asphalt Non-Res • Car Parks • Sitework • Structural Concrete • Roads Readymixed Concrete Residential • Basements • Roads Infrastructure Infrastructurecore core Actively Activelygrowing growingNon-residential Non-residentialand andResi
Slide 6: Organization
Organization Chief Executive Officer Tom Hill Finance Chief Operating Officer Development Government Relations Glenn Culpepper Mark Towe Michael Brady John Hay New England Division NY/NJ Division Central Division West Division John Keating Chris Madden Don Eshleman Bill Sandbrook Mount Hope George T
Slide 7: New England
New England Maine Maine 2004 2004Sales Sales $0.5 $0.5bn bn New NewHampshire Hampshire Op. Op.Margin Margin ~9% ~9% Vermont Vermont Massachusetts Massachusetts Connecticut Connecticut Aggregates Aggregates 21 21mmtons tons Rhode RhodeIsland Island Asphalt Asphalt 88mmtons tons R’mixed R’mixedConcret
Slide 8: New York / New Jersey
New York / New Jersey New NewYork York 2004 2004Sales Sales $0.6 $0.6bn bn New NewJersey Jersey Op. Op.Margin Margin ~11% ~11% Aggregates Aggregates 31 31mmtons tons Asphalt Asphalt 77mmtons tons R’mixed R’mixedConcrete Concrete 0.6 0.6mcyds mcyds Locations Locations 71 71 zzStrong StrongNY NYmetro
Slide 9: Central
Central Michigan Michigan 2004 2004Sales Sales $1.2 $1.2bn bn Ohio Ohio Op. Op.Margin Margin ~10% ~10% Pennsylvania Pennsylvania Delaware Delaware West Aggregates 55 55mmtons WestVirginia Virginia Aggregates tons Tennessee Asphalt Asphalt 16 16mmtons tons Tennessee Alabama R’mixed R’mixedConcrete Co
Slide 10: West
West Washington WashingtonUtah Utah New NewMexico Mexico 2004 2004Sales Sales $1.2 $1.2bn bn Oregon Oregon Montana Montana South SouthDakota Dakota Op. Op.Margin Margin ~9% ~9% Nevada Nevada Wyoming Wyoming Nebraska Nebraska Idaho Idaho Colorado Colorado Iowa Iowa Aggregates Aggregates 37 37mmtons t
Slide 11: SAFETEA-LU
SAFETEA-LU z Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users Î $286.5bn available for highways, public transportation, safety over 6 years Î Signed by President on August 10, 2005; little impact in 2005 z Importance of road network = highway funding a popular iss
Slide 12: SAFETEA-LU
SAFETEA-LU z Post reauthorization - State spending programs (50% Highway Spend) crucial Î Highway system investment doubled over past 20 years Î But slowdown since 2000 Î With States substituting federal funds for State/Local investment Î Recent recovery in state finances should limit substitution z
Slide 13: Energy
Energy Daily Crude Oil Price $70 $60 $50 $ per barrel $40 $30 $20 $10 $0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 z Significant volatility in oil prices in recent years z High oil prices likely to remain post Katrina and Rita z All players large and s
Slide 14: Energy
Energy z Our Exposure Î Public work (65% Sales): 3-9 month leadtime; limited and imperfect escalators Î Private work (35% Sales): 1-2 months leadtime; can reflect more current energy costs Î Major component: liquid asphalt; not a hedgeable commodity z Our Approach Î Price recovery, delivery surcharg
Slide 15: Strategy
Strategy z Sustained focus on cost recovery z Leverage new quarry technology to reduce costs and improve returns z Maintain bolt-on acquisition activity z Augmented by larger deals as opportunities arise Equal Equalfocus focuson on…… cost costreduction, reduction,organic organicdevelopment developme
Slide 16: Compelling Business Proposition
Compelling Business Proposition z Aggregates are a fundamental resource Î Long term reserves Î Value of residual real estate z Federal funding secured to 2009 (SAFETEA-LU); State finances improving z Product demand underpinned by infrastructural renewal & recovering non-residential US USeconomic eco