CRH PLC · NYSE:CRH
CRH — Davy Irish Equity Market Conference, New York 2008
22 slides from CRH's conference presentation, Jan 8, 2008
Slide 1: Davy Irish Equity Market Conference
Davy Irish Equity Market Conference New York Liam O’Mahony Chief Executive January 2008 0
Slide 2: Contents
Contents Overview 1 2007 Trading & Development Updates 7 Delivering through the Cycle 18 Outlook 19 Contact Us 20 Davy Irish Equity Market Conference, New York, 8th January 2008 0
Slide 3: CRH Overview
CRH Overview 1 ‘en
Slide 4: CRH Overview
CRH Overview The International Building Materials Group 1970 merger of Irish Cement and Roadstone; Sales €26M, 95% Ireland Now in 31 countries; 3,500+ locations; 90,000+ people Annualised Sales over €20Bn focused on three core businesses Evenly balanced across geographies, products and secto
Slide 5: CRH - The International Group
CRH - The International Group In 31 countries and in all 50 US States Developed Developed World World c85% c85% EBITDA EBITDA … … Emerging Emerging Regions Regions c15% c15% Davy Irish Equity Market Conference, New York, 8th January 2008 3
Slide 6: CRH - The Building Materials Group
CRH - The Building Materials Group Leading positions in local / regional markets Materials Materials Products Products Distribution Distribution Concrete Concrete Other Other Europe Europe Europe Europe Europe Europe Europe Europe Top Top10 10Cement Cement No No11Architectural Architectural No No11A
Slide 7: CRH - Servicing the Breadth of Demand
CRH - Servicing the Breadth of Demand Balanced exposure to industry demand drivers Product End Use* Geographic End-Use* Materials Products Americas Emerging 55% 33% 45% Regions 15% Distribution 12% Europe 40% Sectoral End Use* Residential Non Residential New 40% 30% 55% Infrastructure RMI 30% 45% Ba
Slide 8: CRH - Track Record
CRH - Track Record A strong culture of delivering superior Performance & Growth 90,000 PBT 75,000 +20%pa Growth Index [1970 = 100] 60,000 45,000 EPS 30,000 +17%pa 15,000 DPS +12%pa 0 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 18% 18% CAGR CAGR in in Total Total Shareholder Shareholder Return
Slide 9: 2007 Trading & Development Updates
2007 Trading & Development Updates 7
Slide 10: CRH Trading Statement
CRH Trading Statement 2007 - another robust year of performance for CRH Expect full year profit before tax of close to €1.9Bn Reflecting a high-teen % increase on 2006 (€1.6Bn) Despite adverse FX impact of c€70m on profit before tax Delivering CRH’s 15th consecutive year of PBT and EPS growt
Slide 11: CRH Financials
CRH Financials Continued focus on development delivery 2007 EBITDA/ net interest cover to remain high at c 9 times Phased reduction in dividend cover to c 3.5 times for FY’08 continues Board decision to introduce a share repurchase programme Limited to a maximum of 5% of Issued Shares, to be
Slide 12: Europe
Europe 2007 Operating Profit Indications € bn Materials Products Distribution Total 2007 Indications ~0.6 ~0.3 ~0.2 ~1.1 2006 Actual 0.421 0.221 0.172 0.814 Materials ¾ Significant H1 advance; continued to perform strongly in H2 ¾ CEE particularly busy; Irish activity continued at a high level P
Slide 13: Americas
Americas 2007 Operating Profit Indications US$ bn Materials Products Distribution Total 2007 Indications >0.75 ~0.47 ~0.10 ~1.35 2006 Actual 0.596 0.470 0.130 1.196 Materials ¾ Strong full year organic EBIT improvement; good margin delivery ¾ Excellent performance from APAC, acquired end-August 20
Slide 14: CRH 2007 Acquisition Delivery
CRH 2007 Acquisition Delivery €2.2 billion spend; a new record for CRH EV Annualised EV / Sales EV / EBITDA** Dimensions (€ Bn) Sales* (€Bn) (x) (x) Europe 0.37 0.30 Americas* 0.58 0.60 Total Materials 0.95 0.90 1.05 6.5 Europe 0.24 0.30 Americas* 0.36 0.50 Total Products 0.60 0.80 0.75 6.5 Europe 0
Slide 15: Materials Acquisitions
Materials Acquisitions €0.95Bn Spend … EV / EBITDA* 6.5x … Sales** €0.9Bn Europe/Asia … 14 acquisitions … EV €0.37Bn, Sales €0.3Bn ¾ 50% Denizli Cement (Turkey); 1.8 mtpa cement capacity ¾ 100% Harbin Sanling Cement (China); 0.65 mtpa cement capacity ¾ 11 other bolt-ons, 6 CEE/Med Basin, 5 Western
Slide 16: Products Acquisitions
Products Acquisitions €0.6Bn Spend … EV / EBITDA* 6.5x … Sales** €0.8Bn Europe … 16 acquisitions … EV €0.24Bn, Sales €0.3Bn ¾ Concrete Products: 8 bolt-ons with EV of approx €0.2Bn ¾ Construction Accessories: 4 bolt-ons to No.1 European position ¾ Building Products: 3 bolt-ons to Fencing & Securit
Slide 17: Distribution Acquisitions
Distribution Acquisitions €0.65Bn Spend … EV / EBITDA* 7.7x … Sales** €1.05Bn Europe … 10 acquisitions … EV €0.45Bn, Sales €0.7Bn ¾ 100% publicly quoted Getaz Romang; CRH now #1 Swiss BM ¾ 7 BM and 2 DIY bolt-ons to existing networks [FR, DE, NL, ES, CH] Americas … 4 acquisitions … EV €0.2Bn, Sa
Slide 18: CRH 2007 Major Cement Development
CRH 2007 Major Cement Development €0.7Bn Investment Commitment over 3 years Ireland: €200m investment … on-stream end-2008 ¾ new state-of-the-art 1.3 mtpa line to replace old 0.4 mtpa kiln Ukraine: JI-0001 €210m investment … on-stream end-2009 ¾ wet to dry conversion to give new state-of-the-art
Slide 19: CRH Performance & Growth
CRH Performance & Growth Our Twin Goals Diverse yet balanced geographic, sectoral and product end-use Disciplined approach to acquisition evaluation Dedicated people with ambition to achieve Experience of managing through economic cycles Devolved structure enables quick and effective respo
Slide 20: Delivering through the Cycle
Delivering through the Cycle CRH strong track record GDP EPS Growth € cent 5% W Europe GDP US GDP CRH EPS 300 4% 240 3% 180 2% 120 1% 60 0% Source: IMF (1% ) (60) 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 e 07 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 1993 1993 –– 2007 2007 … …
Slide 21: 2008 Outlook
2008 Outlook Continuing delivery … 2008 economic f/casts show continued growth but slower pace than 2007 Europe ¾ CEE continuing strong dynamic, more moderate for broader EU ¾ further benefits from 2007’s €1Bn acquisition activity Americas ¾ with balance, goal is to broadly maintain like-for-l
Slide 22: 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
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