CRH PLC · NYSE:CRH
CRH — Davy Irish Equities Conference 2009
25 slides from CRH's conference presentation, January 2009
Slide 1: Davy Irish Equities Conference January 2009
Davy Irish Equities Conference January 2009 Myles Lee Chief Executive
Slide 2: Contents
Contents CRH Overview 2 January Trading Statement 12 Conclusion 22 Contact Us 24 Davy Irish Equity Conference, Jan 2009 1
Slide 3: CRH Overview
CRH Overview
Slide 4: CRH Overview: The International Building Materials Group
CRH Overview The International Building Materials Group 1970 merger of Irish Cement and Roadstone; Sales €26M, 95% Ireland Now in 34 countries; 3,500+ locations; 92,000+ people Annualised Sales over €20Bn focused on three core businesses Evenly balanced across geographies, products and secto
Slide 5: CRH – Focused and Diversified: Materials
CRH – Focused and Diversified Servicing the breadth of Building Materials demand Materials (55% EBITDA) The Fundamentals Europe ¾Top 10 Cement ¾Leader Aggregates, R/mix US ¾No.3 Aggregates ¾No.1 Asphalt, Top 5 R/mix Vertically integrated primary materials businesses with strategically located long-t
Slide 6: CRH – Focused and Diversified: Concrete Products
CRH – Focused and Diversified Servicing the breadth of Building Materials demand Concrete Prods (20% EBITDA) Constructing the Frame Europe ¾No.1 Arch/Structural Concrete ¾No.1 Construction Accessories Americas ¾No.1 Arch/Precast Concrete ¾No.2 Construction Accessories Building systems and engineered
Slide 7: CRH – Focused and Diversified: Other Products
CRH – Focused and Diversified Servicing the breadth of Building Materials demand Other Products (12% EBITDA) Completing the Envelope Europe ¾No.1 Facing Brick [UK/NL] ¾No.1 EPS Insulation [EI/NL/PL/Nordics] ¾No.1 Fencing & Security Americas ¾No.1 Architectural Glass ¾No.1 Clay Brick [NE/MidW US] Com
Slide 8: CRH – Focused and Diversified: Distribution
CRH – Focused and Diversified Servicing the breadth of Building Materials demand Distribution (13% EBITDA) Fit-out and Renewal Cementbouw Store Europe ¾Top 3 BM Distributor Mainland Europe ¾No.1 NL, No.2 BE - DIY Americas ¾Top 3 Roofing / Siding ¾Top 3 Interior Products Distribution channels to serv
Slide 9: Providing Building Materials for Our World
CRH – Focused and Diversified 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 & Concr
Slide 10: CRH … International and Balanced
CRH … International and Balanced By Geography North Western Emerging America Europe Regions 45% 40% 15% By Product Heavyside 75% Lightside 25% Materials Concrete Other Distrib Products Products 55% 20% 12% 13% By Sector Residential Non-Residential Infrastructure 40% 35% 25% By End-use New Repair Mai
Slide 11: Balanced Portfolio contributes to Margin Stability
CRH … Balanced Portfolio contributes to Margin Stability GDP EBITDA Growth Margin 5% W Europe GDP US GDP EBITDA Margin 15% 4% 12% 3% 9% 2% 6% 1% 3% 0% 0% -1% -3% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e Source: IMF October 2008, CRH Operational
Slide 12: Building Materials Sector 2008 Share Price Performance
Building Materials Sector 2008 Share Price Performance Market Cap (€bn) Share Price Share Price % 31 Dec 08 31 Dec 07 31 Dec 08 Change Vulcan 5.5 $ 79.09 $ 69.58 (12%) CRH 9.5 € 23.85 € 17.85 (25%) Martin Marietta 2.9 $ 133.12 $ 97.08 (27%) St.Gobain 12.9 € 64.49 € 33.60 (48%) Wolseley 2.7 £ 7.42 £
Slide 13: January Trading Statement
January Trading Statement
Slide 14: CRH Trading Statement January 2009
CRH Trading Statement January 2009 Expect full year Profit Before Tax in excess of €1.6Bn Representing a mid-teen % decline on 2007 (€1.904Bn) After an adverse FX impact of c€50m (principally due to weaker US$) With a lesser % EPS reduction due to share buyback & lower % tax rate 2008 acqu
Slide 15: 2008 Full Year Europe
2008 Full Year Europe Mid to high single digit % decline on 2007 Op. Profit Indications Materials Products Distribution Total mid to high mid to high c30% 2008 Change single digit % single digit % €1.0 - 1.05 Bn decrease increase decrease 2007 Actual €586m €308m €212m €1.106Bn Materials ¾ Poland/U
Slide 16: 2008 Full Year Americas
2008 Full Year Americas Low-teen % $ Op. Profit decline (high-teen % € decline) Indications Materials Products Distribution Total low-teen % c25% c40% 2008 Change $1.15 - 1.20 Bn decrease decrease increase 2007 Actual $781m $466m $96m $1.343Bn Materials ¾ Robust performance; strong pricing to reco
Slide 17: 2008 Development Activity: €1 billion Acquisition Spend
2008 Development Activity €1 billion Acquisition Spend 2008 spend c€1 billion – H1 €0.7 billion, H2 €0.3 billion H2 spend deliberately curtailed in a deteriorating economic environment 2008 activity includes … ¾ 50% MHIL; Indian cement manufacturer (3.2 mtpa capacity) ¾ 100% Ancon; UK construc
Slide 18: 2008 Capital Expenditure
2008 Capital Expenditure €1 billion spend in line with 2007 Capex also being adjusted to reflect the reduced demand environment 2008 Capex of c€1 billion (2007: €1 billion) … … including €250m (2007 €100m) on major cement projects ¾ Ireland: 1.3 mtpa line - part replacement; in commissioning ¾
Slide 19: Cost Reduction: Annualised Savings
Cost Reduction Annualised Savings €m Europe Americas Total Labour Cost Savings 150 185 335 Bought-in Services, mainly contracted labour 160 110 270 Energy Related 40 40 80 Purchasing Initiatives and other 110 100 210 Total Gross Savings: 460 435 895 Cost to Implement: c€85m 2007 2008 2009 Net
Slide 20: Finance: Continuing to Strengthen Financial Flexibility
Finance Continuing to Strengthen Financial Flexibility 2008 EBITDA / Net interest cover - expected to remain strong at c7.5x Active 2008 financing programme included; ¾ €0.8 billion of new long-term funding (Stg£ 250m and US$ 650m Bonds) ¾ €0.5 billion of new bank term finance ¾ €1.7 billion of
Slide 21: 2009 Outlook: Extremely challenging … but there are positives
2009 Outlook Extremely challenging … but there are positives While the outlook for 2009 is extremely challenging … ¾ given severe impact of ongoing financial market turmoil ¾ on both developed and emerging economies worldwide There are a number of positives … ¾ lower energy costs ¾ recent step-u
Slide 22: 2009 Outlook: Focussed on ensuring CRH is strongly positioned
2009 Outlook Focussed on ensuring CRH is strongly positioned Our attention and actions are resolutely focussed … … on commercial delivery … on ensuring CRH businesses are strongly positioned … through additional cost reduction and cash generation measures … to cope with whatever circumstances may
Slide 23: Conclusion
Conclusion
Slide 24: CRH Investment Highlights
CRH Investment Highlights … Consistent strategy and growth record over 38 years Disciplined approach to acquisition through the cycle Geographic, sectoral and product balance a key strength Strong market positions and well located strategic reserves Experienced senior management team devel
Slide 25: 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