CRH PLC · NYSE:CRH
CRH — CSFB Building Materials Conference 2003
27 slides from CRH's conference presentation, Oct 15, 2003
Slide 1: Performance and Growth
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Slide 2: CRH - Overview
CRH - OVERVIEW z 1970: Irish Cement & Roadstone: Sales €26m, Ireland 95% CSFB Building Materials Conference, October 15 2003 z Embarked on a consistent development strategy z Now 23 countries; 3 continents; +1,600 locations, 50,000 people z Sales c. €11bn across three core businesses: Î Primary Mate
Slide 3: Clear Development Strategy
CLEAR DEVELOPMENT STRATEGY z Stick to core businesses in building materials CSFB Building Materials Conference, October 15 2003 z Invest at “home”; be the low cost market leader z Develop “overseas”; create platforms for future growth z Pay fair prices that meet sellers need z 14 devolved regional d
Slide 4: CRH Acquisition Spend
CRH ACQUISITION SPEND Cementbouw €m Jura Group €330m 100% Ops & JV CSFB Building Materials Conference, October 15 2003 €693m 1600 Shelly Co. €347m 1400 Ibstock 49% €230m Finnsementti/Rudus €420m ytd 1200 T. McCully €425m 1000 Ibstock 51% €320m 800 600 Tilcon US €253m 400 200 0 '87 '88 '89 '90 '91 '9
Slide 5: CRH - YTD 2003 Acquisitions
CSFB Building Materials Conference, October 15 2003 CRH - YTD 2003 ACQUISITIONS €m Europe Americas Total S.E Johnson - 189 189 H1 Update (19 deals) 152 236 388 Cementbouw 100% 646 - 646 Cementbouw JV 47 - 47 Announced YTD 2003 845 425 1,270 67% 33% 100% 5
Slide 6: Cementbouw - The Deal
CEMENTBOUW - THE DEAL z Largest ever CRH deal at €693m CSFB Building Materials Conference, October 15 2003 z CRH has acquired: Î 100% of DIY, Merchanting and Building Products activities Î Enterprise Value €646m including debt acquired. Goodwill estd € 292m Î 2002 Sales € 790m; EBITDA € 100m; EBITA
Slide 7: CRH in the Netherlands
CSFB Building Materials Conference, October 15 2003 CRH IN THE NETHERLANDS 7
Slide 8: CRH - Netherlands
CRH - NETHERLANDS z Distribution CSFB Building Materials Conference, October 15 2003 Î 1973 - Van Neerbos: Builders Merchanting, Concrete & 1 DIY store Î Recognised attractions of DIY; now 54 DIY stores mainly by acquisition z Concrete Products Î 1988 - Acquisition of Verwo a leading producer of con
Slide 9: CRH - Netherlands sales growth by acquisition
CRH - NETHERLANDS €m Sales CSFB Building Materials Conference, October 15 2003 Yule Catto 1000 Daylight & Ventilation May ‘00 Brakel Rooflights 900 Nov ‘96 Dycore 800 Flooring Dec ‘94 Struyk Paving 700 Dec ‘92 Sellink 600 Insulation Jul ‘90 Dutch Brick 500 Feb ‘89 Verwo 400 Concrete Paving Jul ‘88 H
Slide 10: CRH Netherlands P&D
CRH NETHERLANDS P&D Sales CSFB Building Materials Conference, October 15 2003 €m DIY 325 Builders Merchanting 285 Concrete & Clay 230 Fencing & Rooflights 100 Insulation 20 Total 960 10
Slide 11: CSFB Building Materials Conference, October 15 2003
CSFB Building Materials Conference, October 15 2003 11
Slide 12: Cementbouw - The Company
CEMENTBOUW - THE COMPANY z Leading Dutch building materials group CSFB Building Materials Conference, October 15 2003 z DIY - 2nd largest franchisee of Intergamma, the Dutch market leader z Merchanting - major builders merchant in the Netherlands z Building Products - sand lime brick, concrete & cla
Slide 13: Cementbouw DIY
CEMENTBOUW DIY 100% z Cementbouw - Sales €270m Operations CSFB Building Materials Conference, October 15 2003 Î Second largest franchisee in Intergamma, the Dutch DIY market leader Î 54 of the 236 Dutch Intergamma stores - 37 Gamma / 17 Karwei stores Î 24% shareholding in Intergamma z CRH + Cementbo
Slide 14: Cementbouw - Merchanting
CEMENTBOUW - MERCHANTING 100% z Cementbouw - Sales €320m Operations CSFB Building Materials Conference, October 15 2003 Î Leading Dutch builders merchants Î Strong in North and West of the Netherlands with 36 locations Î Top 5 roofing materials merchant z CRH + Cementbouw Î Combination with CRH Sout
Slide 15: Cementbouw - Manufacturing
CEMENTBOUW - MANUFACTURING 100% z Cementbouw - Sales €200m Operations CSFB Building Materials Conference, October 15 2003 Î Sand Lime Bricks - joint leader in Dutch market Î Structural Concrete - Top 5 in flooring / pre-fabricated housing elements Î Paving/APG - leading producer of clay and concrete
Slide 16: Cementbouw - JV Operations
CEMENTBOUW - JV OPERATIONS z Trading / Transport - Sales €150m* CSFB Building Materials Conference, October 15 2003 Î Largest independent cement trader in the Netherlands Î Major processor and trader of cementitious minerals Î Significant logistics capability: storage depots, inland ships, road tank
Slide 17: Cementbouw - Integration
CSFB Building Materials Conference, October 15 2003 CEMENTBOUW - INTEGRATION z Expect relatively straightforward integration process due to Î Similar distinct business segments in both CRH and Cementbouw Î No DIY branch overlaps; only 1 merchanting branch overlap Î Only modest rationalisation requir
Slide 18: CRH Netherlands + Cementbouw
CRH NETHERLANDS + CEMENTBOUW Sales Business €m Position CSFB Building Materials Conference, October 15 2003 DIY 600 c 16% of Dutch DIY market Builders Merchanting 600 c 17% of Dutch market Concrete/Clay/Sand Lime 430 market leader in sand lime bricks, concrete and clay pavers and precast flooring Fe
Slide 19: Netherlands - Construction
NETHERLANDS - CONSTRUCTION % change at constant prices CSFB Building Materials Conference, October 15 2003 Construction* 2001A 2002A 2003F 2004F New Residential -3.5% -4.6% +0.5% +0.5% RMI Residential +0.7% +1.8% +1.6% +1.7% Non-Residential +3.4% -2.3% -6.6% +2.4% Civil Engineering +5.8% -3.5% -0.4%
Slide 20: Netherlands - Economy
NETHERLANDS - ECONOMY % 7 CSFB Building Materials Conference, October 15 2003 6 5 4 3 2 1 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 -1 -2 -3 Construction Sector Output GDP z Sharp slowdown in GDP and construction output since 2001 z Moderate recovery expected from 2004 20
Slide 21: 2003 Outlook
CSFB Building Materials Conference, October 15 2003 2003 OUTLOOK 21
Slide 22: H1 2003 Summary
H1 2003 SUMMARY €m Sales EBITA EBT CSFB Building Materials Conference, October 15 2003 H1 2002 4,801 295 196 Exchange effects (575) (25) (10) Acquisitions 517 34 18 Rationalisation - 7 7 Organic (82) (66) (50) H1 2003 4,661 245 161 Change -3% -17% -18% z Difficult first half in context of: Î Tough m
Slide 23: Full Year Outlook - Europe
FULL YEAR OUTLOOK - EUROPE z Ireland CSFB Building Materials Conference, October 15 2003 Î New residential strong; non-residential weak; infrastructure slower in H2 Î Strong H1; with lower overall H2 activity levels expect full year similar to ‘02 z Britain and Northern Ireland Î Slightly softer ton
Slide 24: Full Year Outlook - Americas
FULL YEAR OUTLOOK - AMERICAS z Materials CSFB Building Materials Conference, October 15 2003 Î Good backlogs but clawback of H1 deficit hampered by wet July / August Î Continuing high energy costs largely recovered through higher prices Î TEA-21 extended to end-February 2004 at an annualised $33.8bn
Slide 25: Full Year - Outlook
CSFB Building Materials Conference, October 15 2003 FULL YEAR - OUTLOOK z Good level of ongoing monthly bolt-on acquisition activity z Continuing emphasis on cost control, cash flow optimisation z Weakening of US$ will have a higher adverse impact in H2 Î A continuing $1.18/€ rate would give ‘03 ave
Slide 26: Summary
SUMMARY z Clear development strategy continues CSFB Building Materials Conference, October 15 2003 z CRH twin focus - tight operations, prudent expansion z Emphasis on cost control, cash flow, performance z Uniquely strong balance sheet and development focus for growth z Well positioned to benefit f
Slide 27: Contact Us
CONTACT US CRH plc CSFB Building Materials Conference, October 15 2003 Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 E-mail: ir@crh.com or look up our Website - www.crh.com CRH® is a registered Trade Mark of CRH plc 27