Crh Plc · NYSE:CRH
Crh — Investor Day (November 2010)
11 slides from Crh's investor day presentation, November 2010
Slide 1: CRH Investor Day 2010: US Market Backdrop
CRH Investor Day 2010 US MARKET BACKDROP M A R K T OW E C EO, C R H A M E R I C A S
Slide 2: US Construction Market Backdrop
2 US Construction Market Backdrop y Most severe downturn since 1930’s PCA Construction Forecasts 140 Fall 2010 Summer 2010 y All sectors impacted 130 Spring 2010 Winter 2009 y Visibility limited; hard to forecast 120 110 y Continued revision by PCA 100 y Latest PCA forecast shows slower pace 90 y Re
Slide 3: US Cement Consumption in Recessions
3 US Cement Consumption in Recessions Year 0 1 2 3 4 5 6 7 8 9 10 11 12 0% '06 ‐10% 1970s '15F % Decline from peak '07 1980s ‐20% '14F ‐30% '08 '13F Current (PCA) '12F ‐40% '09 '10F '11F 1930s ‐50% ‐60% ‐70% 1929‐1941 1973‐1978 1979‐1986 2006‐2015F CRH Investor Day, November 2010
Slide 4: US Infrastructure backdrop
4 US Infrastructure backdrop US Infra Funding c$80Bn pa excluding ARRA Stimulus y c$40 billion from Fed (“SAFETEA‐LU”) y c$10 billion from State matching y c$30 billion from State/Local Current Status y Fed Funds: SAFETEA‐LU expired Sep‐09; extended to YE 2010 y State Funds: significantly impacted b
Slide 5: US Residential & Non-Residential
5 US Residential & Non‐Residential Residential y Recent data releases show improving trends y Bumping along the bottom; timing of recovery unclear Non‐Residential y Significant demand pressures in 2009/10 y ABI lead‐indicator now positive for first time since Jan‐08 y Challenging environment expecte
Slide 6: US Res – PCA forecasts accelerating recovery from 2012
6 US Res – PCA forecasts accelerating recovery from 2012 Source: 1970 – 2015 US Census Bureau; 2009 – 2015 PCA (Nov 2010) Annual Housing starts: 0.6m (2010e) … vs ... 1.6m (1970 – 2007) Annual starts/‘000 population: 1.8 (2010e) … vs ... 6.5 (1970 – 2007) CRH Investor Day, November 2010
Slide 7: US Non Res – ABI low (Jan-09); back to neutral (Sep-10)
7 US Non Res – ABI low (Jan‐09); back to neutral (Sep‐10) Jan 2009 Source: US ABI 2000 – Sep 2010 12‐18 month leading indicator of Non Res activity First positive reading (Sep‐10) in 32 months CRH Investor Day, November 2010
Slide 8: US Non Res recovery forecast to lag Res by c12-24 mths
8 US Non Res recovery forecast to lag Res by c12‐24 mths Source: 1970 – 2006 Dodge; 2007 – 2015 PCA (Nov 2010) Non‐Res recession 2001‐2005 … recovery 2006‐2007 2009‐2010 decline impacted by constrained credit CRH Investor Day, November 2010
Slide 9: CRH Business in the US
9 CRH Business in the US Materials Products Distribution Aggregates Products for Specialised Cement Construction Solutions Distribution Asphalt Readymix Early Cycle Late Cycle New Servicing the breadth of construction RMI CRH Investor Day, November 2010
Slide 10: CRH Business in the US
10 CRH Business in the US Materials Products Distribution Aggregates Products for Specialised Cement Construction Solutions Distribution Asphalt Readymix Sector 50% Infrastructure 30% Non Residential 20% Residential End‐use 40% New Build 60% RMI CRH Investor Day, November 2010
Slide 11: CRH in the Americas
11 CRH in the Americas y Complementary divisions y Multiple growth platforms y Knowledge‐sharing with Europe y Developing our people y Focussed on driving returns CRH Investor Day, November 2010