Crh Plc · NYSE:CRH
Crh — Investor Day (May 2004)
37 slides from Crh's investor day presentation, May 24, 2004
Slide 1: Analysts' Visit: Dutch Distribution Activities
CRH EUROPE PRODUCTS & DISTRIBUTION Analysts’ Analysts’Visit Visit Dutch DutchDistribution DistributionActivities Activities 24th-25th 24th-25thMay May2004 2004 EP&D Analyst Visit May 2004 Brian BrianHill Hill Group GroupManaging ManagingDirector Director 1
Slide 2: Introduction
INTRODUCTION z Objectives of visit Î Overview of CRH EP&D with its 5 product groups Î Update on integration of 2003 acquisitions Î Outline development strategy going forward Î Spotlight on our Distribution activities ...........not a trading update EP&D Analyst Visit May 2004 z This evening Î Overvi
Slide 3: CRH Europe Products & Distribution
CRH EUROPE PRODUCTS & DISTRIBUTION z Europe Products & Distribution Annualised organised in 5 Product Groups Sales c €4bn Concrete 21% Î Concrete Products Distribution Î Clay Products 46% Building Products Î Insulation 10% Î Building Products Clay 9% Î Distribution Sand Lime Insulation Brick CB JV 9
Slide 4: EP&D Organisation
EP&D ORGANISATION CRH EP&D Brian Hill Finance Peter Erkamp EP&D Analyst Visit May 2004 Sand Lime Concrete Clay Insulation Building Distribution Cementbouw Brick Mairtin L Hughes UK Kees Products Stephan JV (45%) R vd Mark Clarke J v Ommen ME Verburg Eric Bax Nanninga J Redeker 4
Slide 5: Concrete Products
EUROPE P&D: Concrete Products Architectural Landscape & infrastructure Sales 2003 € 690m paving, patio tiles, architectural Op. margin c 8% masonry & roof tiles Employees c 5,300 Countries 7 Structural Flooring, façade & structural elements 2003 Sales EP&D Analyst Visit May 2004 Architectural 66% Ut
Slide 6: Concrete Products: Locations & Market Positions
EUROPE P&D: Concrete Products Locations & Market Positions z Architectural Î No.1 Benelux, Germany & Slovakia concrete paving Î No.1 UK architectural masonry z Structural EP&D Analyst Visit May 2004 Î No.1 Benelux precast flooring Î Joint No.1 Danish structural concrete z Utility Î No. 1 French util
Slide 7: Concrete Products: 2003 Development
EUROPE P&D: Concrete Products 2003 Development z Added new territories; Slovakia (Premac) and Denmark (Betonelement) z Expanded Belgian structural and utility ops (Maessen and Duffeleer) z Expanded Dutch (Cementbouw) and German (Gera) concrete ops EP&D Analyst Visit May 2004 z Optimised concrete pol
Slide 8: Concrete Products: Issues and Strategy
EUROPE P&D: Concrete Products Issues Strategy z Architectural: growing spend z Strengthen portfolio in mature by private & public sectors markets z Structural - shortage of z Build positions in developing qualified site labour markets EP&D Analyst Visit May 2004 z Utilities - telco opportunities; z
Slide 9: Clay Products
EUROPE P&D: Clay Products Bricks Sales 2003 € 360m Op. margin c 8% Facing brick & specials Employees c 2,750 Countries 4 Pavers Landscape & infrastructure paving 2003 Sales EP&D Analyst Visit May 2004 Mainland Europe 27% Roof tiles Standard & specialized roof tiles and copings UK 73% Steady and stro
Slide 10: Clay Products: Locations & Market Positions
EUROPE P&D: Clay Products Locations & Market Positions z UK Î No. 1 facing bricks z Mainland Europe Î NL, Poland, Germany EP&D Analyst Visit May 2004 Î No.1 German clay pavers Î No.1 NL quality facing bricks 10
Slide 11: Clay Products: Issues and Strategy
EUROPE P&D: Clay Products Issues Strategy z Driven by new housing sector z Maximise efficiency/capacity utilisation z Tough conditions in mainland Europe z Consolidate leading positions in UK and the Netherlands z Oversupplied, fragmented EP&D Analyst Visit May 2004 German market z Participate in ra
Slide 12: Insulation
EUROPE P&D: Insulation EPS Expanded Polystyrene: used in non- Sales 2003 € 260m residential & residential construction Op. margin c 9% Employees c 1,600 XPS Countries 10 Extruded polystyrene: principal end use in res and non-res construction XPE 2003 Sales EP&D Analyst Visit May 2004 PUR/PIR Extrude
Slide 13: Insulation: Locations & Market Positions
EUROPE P&D: Insulation Locations & Market Positions No.1 European Foam Insulation z EPS Î No.1 Ireland, Netherlands, Poland, Nordic regions. Î Joint No.1 UK EP&D Analyst Visit May 2004 z XPS Î Germany, Belgium Î No.1 Germany z XPE Î No.1 Germany z PUR/PIR Î UK, NL, Germany, Poland 13
Slide 14: Insulation: 2003 Development
EUROPE P&D: Insulation 2003 Development z Acquired major EPS producer (Unidek)...... z ...with leading positions and excellent facilities in Benelux / Germany z Ideal fit with EPS ops in Ireland / UK / Poland / Nordic region EP&D Analyst Visit May 2004 z Ongoing consolidation opportunities: market s
Slide 15: Insulation: Issues and Strategy
EUROPE P&D: Insulation Issues Strategy z Energy costs, Kyoto Protocol, z Take full advantage of stringent insulation industry consolidation regulations are strong growth Î Add to existing strongholds drivers Î Acquisition of new growth platforms z Insulation growth outpaces z Benefit from implementa
Slide 16: Building Products
EUROPE P&D: Building Products Daylight & Ventilation Sales 2003 € 365m Continuous rooflights, roof domes, roofing systems, Op. margin c 8% active & natural ventilation Employees c 2,350 systems Countries 8 Fencing & Security Fences, gates, mobile 2003 Sales fencing, perimeter security & access contr
Slide 17: Building Products: Locations & Market Positions
EUROPE P&D: Building Products Locations & Market Positions z Daylight & Ventilation Î UK, Ireland, Benelux, Germany Î No.1 Benelux rooflights & ventilation Î Joint No.1 German rooflights & ventilation z Fencing & Security Î UK, Benelux, Germany, France, EP&D Analyst Visit May 2004 Spain, Poland Î No
Slide 18: Building Products: 2003 Development
EUROPE P&D: Building Products 2003 Development z Fencing & Security Î Acquired leading German fencing company (Adronit).... Î ...and major European access control supplier (Magnetic Autocontrol) with international sales network Î Good growth opportunities with proprietary technology EP&D Analyst Vis
Slide 19: Building Products: Strategy
EUROPE P&D: Building Products Strategy z Daylight & Ventilation (annual sales c €150m) Î Continue expansion in the Benelux, Germany, Ireland and the UK Î Accelerate product/technology exchange z Fencing & Security (annual sales c €200m) EP&D Analyst Visit May 2004 Î Grow from current strong bases in
Slide 20: Distribution
EUROPE P&D: Distribution General Merchants Sales 2003 € 1,360m Op. margin c 5% General heavy building materials merchants Employees c 6,000 Countries 6 Specialist Merchants Ironmongery, roofing, 2003 Sales ceramics, aluminium, sanitary EP&D Analyst Visit May 2004 and cash & carry DIY 33% DIY Broad c
Slide 21: Distribution: Locations & Market Positions
EUROPE P&D: Distribution Locations & Market Positions z General Merchants Î No. 1 NL & Switzerland Î No. 2 Ile-de-France Î No. 1 France Comte, Burgundy & Rhone-Alpes regions in France z Specialist Merchants EP&D Analyst Visit May 2004 Î No. 1 Dutch Roofing Distribution Î No. 2 Swiss sanitary ware &
Slide 22: Distribution: 2003 Development
EUROPE P&D: Distribution 2003 Development z Cementbouw added 54 DIY and 36 Builders Merchant stores z 3 DIY Bolt-ons in Belgium: Bricorama, Heeren and Leuven (16 stores) z Now c 16% of Dutch DIY market; c 17% share Dutch Builders Merchants EP&D Analyst Visit May 2004 z Samse / Doras deal will expand
Slide 23: Distribution: Strategy
EUROPE P&D: Distribution Stategy z To build a Pan-European Distribution group Î In mature economies Î With top class regional positions Î Supported by strong brands EP&D Analyst Visit May 2004 Î Driven by focused and entrepreneurial management teams Î Delivering superior EBIT margins 23
Slide 24: Financial History
FINANCIAL HISTORY Sales & Avg Net Op. profit Assets €m Sales, Op. Profit and Net Assets €m 3500 300 Sales 3000 Op 250 2500 Profit 200 2000 Net 1500 Assets 150 EP&D Analyst Visit May 2004 1000 100 500 0 50 1999 2000 2001 2002 2003 €m 1999 2000 2001 2002 2003 CAGR 99-03 Sales 1,718 1,763 2,175 2,506 3
Slide 25: CRH & Cementbouw Pre-Deal
CRH & CEMENTBOUW PRE-DEAL CRH EP&D Building Concrete Clay Insulation Distribution Products Structural Clay ME D&V EPS DIY Builders Architectural Clay UK F&S XPS / XPE Merchants Developing Conc. Specialist PUR / PIR Regions Accessories BM Cementbouw Handel & Industrie (Holdings) BV Builders Binding &
Slide 26: Cementbouw Integration I
CEMENTBOUW INTEGRATION I CRH EP&D Building Cementbouw Concrete Clay Insulation Distribution Products JV Binding & Structural Clay ME D&V EPS DIY Logistics Builders Readymix Architectural Clay UK F&S XPS / XPE Merchants Concrete Developing Conc. Specialist PUR / PIR Regions Accessories BM JV with CVC
Slide 27: Cementbouw Integration II
CEMENTBOUW INTEGRATION II CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Builders Readymix Architectural Clay UK F&S XPS / XPE Merchants Concrete Developing Conc. Specialist PUR / PIR Regions Accessori
Slide 28: Cementbouw Integration III
CEMENTBOUW INTEGRATION III CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Clay Builders Readymix Architectural F&S XPS / XPE Products Merchants Concrete Developing Conc. Specialist Clay UK PUR / PIR Re
Slide 29: Cementbouw Integration IV
CEMENTBOUW INTEGRATION IV CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Prefab Clay Builders Readymix F&S XPS / XPE Systems Products Merchants Concrete Conc. Specialist Architectural Clay UK PUR / PIR
Slide 30: Cementbouw Integration V
CEMENTBOUW INTEGRATION V CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Prefab Clay Readymix F&S XPS / XPE DIY Systems Products Concrete Conc. Builders Architectural Clay UK PUR / PIR Accessories Merch
Slide 31: Cementbouw Integration VI
CEMENTBOUW INTEGRATION VI CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Prefab Clay Readymix F&S XPS / XPE DIY Systems Products Concrete Conc. Builders Architectural Clay UK PUR / PIR Accessories Merc
Slide 32: Cementbouw Integration VI
CEMENTBOUW INTEGRATION VI CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Prefab Clay Readymix F&S XPS / XPE DIY Systems Products Concrete Conc. Builders Architectural Clay UK PUR / PIR Accessories Merc
Slide 33: Post-Integration
POST-INTEGRATION CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Prefab Clay Readymix F&S XPS / XPE DIY Systems Products Concrete Conc. Builders Architectural Clay UK PUR / PIR Accessories Merchants Con
Slide 34: Post-Integration
POST-INTEGRATION CRH EP&D Building Cementbouw Sand Lime Concrete Clay Insulation Distribution Products JV Brick Binding & Structural Clay ME D&V EPS DIY Logistics Prefab Clay Readymix F&S XPS / XPE DIY Systems Products Concrete Conc. Builders Architectural Clay UK PUR / PIR Accessories Merchants Con
Slide 35: P&D Market Backdrop
EUROPE P&D MARKET BACKDROP z Netherlands, UK, France and Germany account for c 80% of CRH EP&D z Netherlands Î Early signs of economic recovery Î Improvement in new residential order books Î Non-res remains weak and infrastructure over peak z UK Î Economy remains robust; Barker report to release pen
Slide 36: In Conclusion: 2004 Outlook
IN CONCLUSION.... 2004 Outlook z Though showing signs of improvement, markets remain subdued z Nevertheless, our businesses continue to advance …. z …. with ongoing operating improvement and strong acquisition contributions Looking forward EP&D Analyst Visit May 2004 z Relentless focus on further pr
Slide 37: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland EP&D Analyst Visit May 2004 Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 E-mail: ir@crh.com or look up our Website - www.crh.com This results presentation contains certain forward-looking statements as defined under U