Crh Plc · NYSE:CRH
Crh — Investor Presentation (May 2007)
25 slides from Crh's investor presentation, May 23, 2007
Slide 1: Investor/Analyst Visit Switzerland – Europe Materials
CRH plc Investor/Analyst Visit Switzerland 23–25 May, 2007 Europe Materials Declan Doyle, Managing Director Albert Manifold, Managing Director Designate Henry Morris, Chief Operating Officer Investor/Analyst Swiss Visit, 23- 23-25 May 2007 1
Slide 2: Agenda
Europe Materials Agenda Operations & Strategy …….. Declan Doyle Developing Regions ………. Albert Manifold Focus on Switzerland ……... Henry Morris Investor/Analyst Swiss Visit, 23- 23-25 May 2007 2
Slide 3: Europe Materials Overview
Europe Materials Overview Sales Sales (2006) (2006) €3.0 €3.0 Bn Bn 5-yr 5-yr Sales Sales CAGR CAGR c. c. 10% 10% Op. Op. Margin Margin 14.2% 14.2% Countries Countries 16 16 Locations Locations 470+ 470+ Employees Employees 12,000+ 12,000+ Res Non-Res New 45% 25% 80% Infra RMI 30% 20% Investor/Analy
Slide 4: Organisation
Europe Materials Organisation Declan DeclanDoyle Doyle Albert AlbertManifold Manifold Managing Director Managing Director Managing ManagingDirector Director Designate Designate Jim JimNolan Nolan Eamon EamonGeraghty Geraghty Henry HenryMorris Morris Alan AlanConnolly Connolly Frank FrankHeisterkamp
Slide 5: Development History
Development History Switzerland: Switzerland: Switzerland: Switzerland: Spain: Spain: Irish Irish Ireland: Ireland: Poland: Poland: Turkey: Turkey: Jura JuraGroup Group Hastag Hastag Uniland Uniland Cement Cement Northstone Northstone Cementownia CementowniaOżarów Ożarów Denizli Denizli (€0.3Bn) (€0
Slide 6: Strategic Considerations
Strategic Considerations Key priorities across all regions… Maintain position as “low-cost” producer Focus on energy efficiency Invest for future growth Secure long-term reserves Investor/Analyst Swiss Visit, 23- 23-25 May 2007 6
Slide 7: Ireland Overview
Ireland Overview Sales Sales (2006) (2006) €1.2Bn €1.2Bn 5-yr 5-yr Sales Sales CAGR CAGR c. c. 6% 6% Op. Op. Margin Margin c. c. 13% 13% Cement Cement 3.6 3.6 m m tonnes tonnes Aggregates Aggregates 34.7 34.7 m m tonnes tonnes Asphalt Asphalt 3.1 3.1 m m tonnes tonnes R’mixed R’mixed Concrete Concre
Slide 8: Ireland Economic Backdrop
Ireland Economic Backdrop Strong Strong GDP GDP growth growth (c.5% (c.5% in in 2007) 2007) Continued Continued high high construction construction output output levels levels Slowing Slowing residential residential construction construction offset offset by by strong strong non-residential
Slide 9: Ireland Strategy
Ireland Strategy Maintain Maintain leading leading position position as as lowest lowest cost/best cost/best value value producer producer Recover Recover input input cost cost increases increases Operate Operate to to highest highest environmental environmental standards standards New N
Slide 10: Finland / Baltics Overview
Finland / Baltics Overview Sales Sales (2006) (2006) €0.5Bn €0.5Bn 5-yr 5-yr Sales Sales CAGR CAGR c. c. 9% 9% Op. Op. Margin Margin c. c. 15% 15% Cement Cement 1.6 1.6 m m tonnes tonnes Aggregates Aggregates 26 26 m m tonnes tonnes Asphalt Asphalt 0.1 0.1 m m tonnes tonnes R’mixed R’mixed Concrete
Slide 11: Finland / Baltics Economic Backdrop
Finland / Baltics Economic Backdrop Finland Finland ¾Robust ¾Robust GDP GDP growth growth (+3% (+3% ‘07) ‘07) ¾Construction ¾Construction keeping keeping pace pace Baltic Baltic States States ¾Increased ¾Increased construction construction activity activity underpinned underpinned by by strong
Slide 12: Finland / Baltics Strategy
Finland / Baltics Strategy Maintain Maintain strong strong market market positions positions Bolt-on Bolt-on acquisitions acquisitions to to expand expand product product portfolio portfolio and and improve improve sectoral sectoral balance balance Invest Invest for for operational operatio
Slide 13: Central Eastern Europe Overview
Central Eastern Europe Overview Sales Sales (2006) (2006) €0.5Bn €0.5Bn 5-yr 5-yr Sales Sales CAGR CAGR c. c. 16% 16% Op. Op. Margin Margin c. c. 17% 17% Cement Cement 5.0m 5.0m tonnes tonnes Aggregates Aggregates 9.4m 9.4m tonnes tonnes Asphalt Asphalt 0.8m 0.8m tonnes tonnes R’mixed R’mixed Concre
Slide 14: Central Eastern Europe Economic Backdrop
Central Eastern Europe Economic Backdrop Poland Poland ¾ ¾GDP GDP growth growth remains remains strong strong (c.6% (c.6% inin 2007) 2007) ¾ ¾Construction Construction output output supported supported by by EU EU funding funding ¾ ¾Exceptionally Exceptionally robust robust demand demand across a
Slide 15: Central Eastern Europe Strategy
Central Eastern Europe Strategy Invest Invest to to capitalise capitalise on on growing growing economies economies Continue Continue to to develop develop strong strong vertically vertically integrated integrated businesses businesses Extend Extend product product coverage coverage and and
Slide 16: Ukraine: Dry production at Podilsky Cement
Ukraine Dry production at Podilsky Cement JI JI Project Project … … UN-backed UN-backed project project to to convert convert to to dry dry production production at at Kamenets-Podilsky Kamenets-Podilsky €210 €210 million million total total investment investment CO CO22 emissions emissions
Slide 17: Switzerland Overview
Switzerland Overview Sales Sales (2006) (2006) €0.25Bn €0.25Bn 5-yr 5-yr Sales Sales CAGR CAGR c. c. 10% 10% Op. Op. Margin Margin c. c. 17% 17% Cement Cement 1.0 1.0 m m tonnes tonnes Aggregates Aggregates 5.7 5.7 m m tonnes tonnes Asphalt Asphalt 0.1 0.1 m m tonnes tonnes R’mixed R’mixed Concrete
Slide 18: Switzerland Economic Backdrop
Switzerland Economic Backdrop Stable Stable GDP GDP growth growth (c.2% (c.2% in in 2007) 2007) Low Low inflation inflation and and favourable favourable exchange exchange rates rates Construction Construction outlook outlook stable stable after after good good growth growth in in recent re
Slide 19: Switzerland Strategy
Switzerland Strategy Enhance Enhance existing existing market market positions positions Margin Margin improvement improvement Optimise Optimise alternative alternative fuel fuel usage usage Acquire Acquire strategically strategically located located businesses businesses Explore Expl
Slide 20: Iberia / Mediterranean Overview
Iberia / Mediterranean Overview Sales Sales (2006) (2006) €0.5Bn €0.5Bn 5-yr 5-yr Sales Sales CAGR CAGR c. c. 25% 25% Op. Op. Margin Margin c. c. 13% 13% Cement* Cement* 3.7 3.7 m m tonnes tonnes Aggregates Aggregates 5.8 5.8 m m tonnes tonnes R’mixed R’mixed Concrete Concrete 6.3 6.3 m m c.metres c
Slide 21: Iberia / Mediterranean Economic Backdrop
Iberia / Mediterranean Economic Backdrop Spain Spain ¾ ¾ 2007 2007 GDP GDP growth growth c.c. 4% 4% ¾ ¾ Strong Strong construction construction growth growth ¾ ¾ Increasingly Increasingly competitive competitive market market Portugal Portugal ¾ ¾ Subdued Subdued economic economic backdrop bac
Slide 22: Iberia / Mediterranean Strategy
Iberia / Mediterranean Strategy Spain Spain ¾ ¾ Optimise Optimise existing existing market market positions positions ¾ ¾ Develop Develop new new product product and and regional regional markets markets ¾ ¾ Advance Advance Uniland Uniland position position Portugal Portugal ¾ ¾ Maintain Maint
Slide 23: Superior Performance …
Europe Materials Superior Performance … Maintain and build existing operations in mature European markets: ¾ Strong leading market positions in stable economies ¾ Selectively expand in related products ¾ Geographic infill Rigorous focus on operating excellence: “Lowest cost producer” ¾ Energy co
Slide 24: … and Growth
Europe Materials … and Growth Developed Europe ¾ Bolt-ons to existing platforms, expand to adjacent geographies ¾ Acquisition of new strategic “clusters” ( Aggregates, Lime, Readymixed Concrete) ¾ Leverage Med. Basin presence with cautious step-out to North Africa & Middle East Eastern Europe &
Slide 25: Conclusion
Conclusion Core Product Group Primary materials are a core product group in CRH and a major contributor to Group EBIT (51% in 2006 – Europe 24%, Americas 27%) ¾ Cash flows ….. Strong & stable ¾ Returns ….. Excellent long-term returns ¾ Strategic benefits …… Platform facilitates downstream growth ¾