Crh Plc · NYSE:CRH
Crh — Investor Day (October 2004)
19 slides from Crh's investor day presentation, Oct 27, 2004
Slide 1: Europe Materials Divisional Profile
Europe Europe Materials Materials Divisional Divisional Profile Profile Declan Declan Doyle Doyle Analysts / Investor Briefing, 27 October 2004 1
Slide 2: Europe Materials
Europe Materials Ireland Financials €m 2003 2002 2001 Spain Sales 1,984 1,927 1,861 Poland & Ukraine Operating Profit 273 267 271 Finland & Baltics Avg Net Assets 1,548 1,619 1,556 Switzerland Operating Margin 13.8% 13.9% 14.6% Portugal (49%) Tunisia (48%) Israel (25%) 2003 4% 4% 2003 8% 10% Ireland
Slide 3: Europe Materials - Organisation
Europe Materials - Organisation Managing Director Declan Doyle Finance Development Alan Connolly Frank Heisterkamp Technical Eamon Geraghty Chief Operating Officer Central Eastern Anthony O'Loghlen Europe Declan Maguire ICL Roadstone Wood / Spain / Finland / Farrans Group Portugal Switzerland Jim No
Slide 4: Market Positions & 2003 Product Volumes
Market Positions & 2003 Product Volumes Market Positions Ireland Spain Poland Ukraine Finland Switzerland Israel Portugal Total (incl NI) (Catalonia) Catalonia) Vols* Vols* Cement #1 #3 #2 #1 #2 #1 #2 11.0mt Aggregates #1 #1 #2 #1 #2 65.7mt Readymix #1 #1 #1 #2 8.7mcmts Lime #1 #2 1.5mt Concrete Pro
Slide 5: Europe Materials - Development
Europe Materials - Development Sales Development Spend, Sales and EBITA EBITA/Dev Spend €m €m Jura 2200 600 Finnsementti/Rudus Switzerland Secil Finland/Baltics Portugal 2000 1800 500 Establishment of 1600 Europe Materials Division 400 1400 1200 300 1000 800 200 600 400 Poland entry 100 200 0 0 1990
Slide 6: Regional Review
Regional Review Î Ireland Î Ireland Î Spain Î Spain Î Poland/Ukraine Î Poland/Ukraine Î Finland/Baltics Î Finland/Baltics Î Switzerland Î Switzerland Î Portugal Î Portugal Analysts / Investor Briefing, 27 October 2004 6
Slide 7: Ireland - Regional Review
Ireland - Regional Review €bn 25 Republic of Ireland Output in constant prices 20 z 2003 Sales €993m 15 z Operating Margin c 14% 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004F 2005F 2006F Total Construction Market €23.3bn (18% GDP) Strategy Strategy 19% z Invest in reserves and plant z I
Slide 8: Spain - Regional Review
Spain - Regional Review €bn 145 Output in constant prices 130 z 2003 Sales €206m 115 z Operating Margin c 9% 100 85 70 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004F 2005F 2006F Total Construction Market €127.5bn (17% GDP) Strategy Strategy z Optimise price/volumes 32% z Optimise price/volumes
Slide 9: Poland/Ukraine - Regional Review
Poland/Ukraine - Regional Review €bn 25 Poland Output in constant prices 20 z 2003 Sales €226m 15 z Operating Margin c 12% 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004F 2005F 2006F Total Construction Market €18.4bn (10% GDP) Strategy Strategy 23% z Strengthen regional market positions 3
Slide 10: Finland/Baltics - Regional Review
Finland/Baltics - Regional Review €bn 25 Finland Output in constant prices 20 z 2003 Sales €324m 15 z Op. Margin c 15% 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004F 2005F 2006F Total Construction Market €18.8bn (13% GDP) Strategy Strategy 21% z Improve margins z Improve margins 38% z Bo
Slide 11: Switzerland - Regional Review
Switzerland - Regional Review €bn 35 Output in constant prices 30 z 2003 Sales €164m 25 z Operating Margin c 17% 20 15 10 5 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004F 2005F 2006F Total Construction Market €32.3bn (11% GDP) Strategy Strategy z Bolt-on acquisitions 30% z Bolt-on acquisitions
Slide 12: Portugal - Regional Review
Portugal - Regional Review €bn 25 Output in constant prices 20 z 2003 Sales (49%) €205m 15 z Operating Margin c 17% 10 z Acquired June 2004 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004F 2005F 2006F Total Construction Market €24.0bn (17% GDP) Strategy Strategy 29% z Invest in related busine
Slide 13: Europe Materials - Strategy
Europe Materials - Strategy Established Extend Markets: z Ireland z Ireland Maintain Maintain z Iberia z Iberia z Iberia && z Poland z Iberia z Poland z Mature EU Build z Finland z Mature EU Build z Finland z Switzerland z Switzerland Developing Growth Options Markets: z Baltic States z Accession St
Slide 14: Strategy in Action - CRH in Poland
Strategy in Action - CRH in Poland Why Poland? z Long association as a CRH trading partner z Transition well advanced - worst was over by 1995: Î Inflation 250% in 1990, 15% in 1995 Î GDP growth 1995 +3.8%, after output fall of +25% 1990-92 Î Set to join EU & NATO z Strategic location, at heart of e
Slide 15: Strategy in Action - Poland 1995 - 1996
Strategy in Action - Poland 1995 - 1996 Exposure to Market: High Medium Low MARKETS Market New Non- Infrastructure Products New Res RMI Other Turnover Position Res / Civil € 14 m Cement #3 PLN 65m Analysts / Investor Briefing, 27 October 2004 15
Slide 16: Strategy in Action - Poland 2000
Strategy in Action - Poland 2000 Exposure to Market: High Medium Low MARKETS Market New Non- Infrastructure Products New Res RMI Other Turnover Position Res / Civil Cement #3 Aggregates #1 € 208 m Readymix - PLN 830m Concrete Products #4 Blacktop - Analysts / Investor Briefing, 27 October 2004 16
Slide 17: Strategy in Action - Poland 2003
Strategy in Action - Poland 2003 Exposure to Market: High Medium Low MARKETS Market New Non- Infrastructure Products New Res RMI Other Turnover Position Res / Civil Cement #3 Aggregates #2 Readymix - € 200 m Concrete Products #4 PLN 870m Blacktop - Lime #2 Aerated Blocks #2 Analysts / Investor Brief
Slide 18: Poland Future Prospects
Poland Future Prospects z Built great business in short time …. Strong early returns z Sustainable economic growth supported by EU accession and of structural reforms z EU structural funds to benefit economy & construction sector: Funds Breakdown: €12.1bn Î 2004 - 2006: €15.5bn in total Î €12.1 bn c
Slide 19: Europe Materials Summary
Europe Materials Summary z Strong positions in stable economies z Well positioned to benefit from EU enlargement z Mediterranean options z Good reserves in strategic locations z Increased use of alternative fuels z Good cash flows z Strong leadership development focus to maintain track record of gro