Crh Plc · NYSE:CRH
Crh — Investor Day (October 2004)
18 slides from Crh's investor day presentation, Oct 27, 2004
Slide 1: Americas Materials Divisional Profile
Americas Americas Materials Materials Divisional Divisional Profile Profile Tom Tom Hill Hill Analysts / Investor Briefing, 27 October 2004 1
Slide 2: Americas Materials
Americas Materials Financials $m 2003 2002 2001 28 US States Sales 3,202 2,905 2,837 # 1 Asphalt Operating Profit 329 318 310 Avg Net Assets 3,036 2,685 2,338 # 4 Aggregates Operating Margin 10.3% 10.9% 10.9% Top 10 readymixed concrete 2003 15% 15% 2003 Sales New England 25% Op Profit 33% 16% New Yo
Slide 3: Americas Materials - Organisation
Americas Materials - Organisation Chief Executive Officer Tom Hill Finance Government Relations Glenn Culpepper John Hay Development Michael Brady Chief Operating Officer Mark Towe New England Division NY / NJ Division Central Division West Division Randy Pike Chris Madden Don Eshleman Bill Sandbroo
Slide 4: Americas Materials - Development
Americas Materials - Development Sales Development Spend, Sales and EBITA EBITA/Dev Spend US$m US$m Shelly Mt Hope 3500 Ohio NJ US Aggregates 700 Thompson McCully West/Central Tilcon Michigan 3000 600 New England NY/NJ SE Johnson Ohio/Michigan 2500 500 2000 400 1500 300 1000 200 500 100 0 0 1990 199
Slide 5: Regional Review: New England
Regional Review New New England England Analysts / Investor Briefing, 27 October 2004 5
Slide 6: New England
New England z 2003 Sales $453m Maine Maine New z Operating Margin c 11% NewHampshire Hampshire Vermont Vermont z Aggregates (m tons) 19.8 Massachusetts Massachusetts z Asphalt (m tons) 7.6 Connecticut Connecticut z Readymixed concrete (mcyds) 0.4 Rhode RhodeIsland Island Strategy Strategy z Mature m
Slide 7: Regional Review: New York / New Jersey
Regional Review New New York York // New New Jersey Jersey Analysts / Investor Briefing, 27 October 2004 7
Slide 8: New York / New Jersey
New York / New Jersey z 2003 Sales $604m New NewYork York New z Operating Margin c 12% NewJersey Jersey z Aggregates (m tons) 29.3 z Asphalt (m tons) 7.0 z Readymixed concrete (mcyds) 0.6 Strategy Strategy z Enhance strong NY Metro / New Jersey z Enhance strong NY Metro / New Jersey market marketpos
Slide 9: Regional Review: Central
Regional Review Central Central Analysts / Investor Briefing, 27 October 2004 9
Slide 10: Central
Central z 2003 Sales $1,132m Michigan Michigan Ohio z Operating Margin c 11% Ohio Pennsylvania Pennsylvania z Aggregates (m tons) 54.3 Delaware Delaware z Asphalt (m tons) 15.1 West WestVirginia Virginia z Readymixed concrete (mcyds) 0.6 Tennessee Tennessee Alabama Alabama Georgia Georgia Strategy S
Slide 11: Regional Review: West
Regional Review West West Analysts / Investor Briefing, 27 October 2004 11
Slide 12: West
West z 2003 Sales $1,013m Washington Washington Utah Utah New NewMexico Mexico Oregon Montana South z Operating Margin c 8% Oregon Montana SouthDakota Dakota Nevada Nevada Wyoming Wyoming Nebraska Nebraska z Aggregates (m tons) 35.4 Idaho Idaho Colorado Colorado Iowa Iowa z Asphalt (m tons) 6.1 z Re
Slide 13: Highway Funding Backdrop
Highway Funding Backdrop z Infrastructure including highway construction accounts for c 65% of Divisional sales z Federal Govt accounts for c50% of highway investment: States & Local c50% z Highway funding popular issue with politicians and public; “Car is King” culture z Americans are growing more
Slide 14: Highway Funding Backdrop
Highway Funding Backdrop z Federal funding has increased historically Highway Program Expenditures 35.0 30.0 25.0 (US $BN) 20.0 15.0 10.0 5.0 0.0 1985 1987 1988 1990 1991 1993 1995 1996 1997 1998 1999 2001 2002 2004 1986 1989 1992 1994 2000 2003 Year Analysts / Investor Briefing, 27 October 2004 14
Slide 15: Highway Funding Backdrop
Highway Funding Backdrop z State Highway Funding Î Federal projects require state to fund a portion of the project Î Many states have faced recent deficits; improving economy easing the pressures z Federal Highway Funding Î TEA-21 expired September 30th 2003 Î 2004 funding $33.6 bn (+7% on 2003 leve
Slide 16: Business Issues - Energy
Business Issues - Energy $ BBL US Crude Oil Prices 60 50 40 30 20 10 0 Jul 88 Jul 89 Jul 90 Jul 91 Jul 92 Jul 93 Jul 94 Jul 95 Jul 96 Jul 97 Jul 98 Jul 99 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jan 88 Jan 89 Jan 90 Jan 91 Jan 92 Jan 93 Jan 94 Jan 95 Jan 96 Jan 97 Jan 98 Jan 99 Jan 00 Jan 01 Jan 02 Jan 0
Slide 17: Business Issues - Energy
Business Issues - Energy z Focus on managing energy cost increases through Î Substitution: RAP, Used Oil Î Hedging: Bitumen storage 1998 2004 RAP % of Asphalt Tons 5% 10% Used Oil % of burner fuel used 5% 65% Bitumen Storage ‘000 tons 50 700 Î Price recovery Analysts / Investor Briefing, 27 October
Slide 18: Summary
Summary z State budgets deficits improving z Successful completion to TEA-21 renewal in Spring 2005 z Energy prices stabilising? z Focus on cost recovery z Continuing growth opportunities Î Good population of small to medium sized add-ons Î Some larger family-owned targets Analysts / Investor Briefi