CRH PLC · NYSE:CRH
CRH — DRKW Basic Materials Conference 2006
30 slides from CRH's conference presentation, Apr 3, 2006
Slide 1: DRKW Basic Materials Conference, London, April 3rd 2006
DRKW Basic Materials Conference London, April 3rd 2006 Myles Lee, Finance Director DRKW Building Materials Conference, London, April 3 2006 1
Slide 2: CRH Overview
CRH OVERVIEW z Diversified building materials Group: Europe c. 50%, Americas c. 50% z Three core businesses: Materials 40%, Products 37%, Distribution 23% (2005 sales) z Operating in 25 countries, 2,600+ locations, 66,500+ employees z Market capitalisation c. €15 Bn – in top 5 in sector worldwide z
Slide 3: CRH Performance
CRH PERFORMANCE z 2005 IFRS PBT ©16%, 2005 EPS ©14%, z 1992 to 2005 EPS* CAGR ©20% z 2005 dividend ©18%, (2004 ©17%) z 1983 to 2005 dividend CAGR ©13% z A consistent development approach; 2005 activity of €1.45Bn, average '99 – '05 €1.3Bn 13th consecutive year of profit and EPS growth 22nd consecuti
Slide 4: CRH Development Approach
CRH DEVELOPMENT APPROACH Identifying Identifyingopportunities opportunities Courtship/negotiation Courtship/negotiation z Ongoing contact; 25 year+ z Patient approach, recognise z Ongoing contact; 25 year+ z Patient approach, recognise database database evolving evolvingcircumstances circumstances z
Slide 5: CRH Development Spend 1999-2005
CRH DEVELOPMENT SPEND 1999-2005 €Bn Europe Americas Total Materials 2.1 3.0 5.1 54% Products 1.5 1.5 3.0 32% Distribution 1.0 0.3 1.3 14% Total 4.6 4.8 9.4 100% 49% 51% 100% DRKW Building Materials Conference, London, April 3 2006 5
Slide 6: Continuing Financial Strength
CONTINUING FINANCIAL STRENGTH €Bn 2005 2004 Acquisitions & Investments 1.30 1.02 Capital Expenditure 0.65 0.55 Total Investment Spend 1.95 1.57 Net Debt increase 0.7 0.2 Year-end Net Debt 3.4 2.7 Debt/Shareholders Funds 55% 55% Debt/Market Capitalisation 26% 26% EBITDA/Net Interest Cover 12.7x 11.3x
Slide 7: Three Core Businesses
THREE CORE BUSINESSES Primary Materials Building Products Distribution Precast concrete products; concrete blocks, pavers, rooftiles; clay bricks, pavers, tiles; insulation products; fencing & security; glass fabrication, rooflights & ventilation, construction accessories Cement, aggregates, asphalt
Slide 8: Federal Group
FEDERAL GROUP Chief Executive Group Functions Finance y Development y Human Resources y Environment y Health & Safety Europe Europe Americas Americas Materials Products & Distribution Materials Products & Distribution Materials Products Distribution Materials Products Distribution DRKW Building Mate
Slide 9: Europe Materials - Positions
EUROPE MATERIALS - POSITIONS IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,646 2,646 2,307 2,307 Operating OperatingProfit Profit 377 377 320 320 Operating OperatingMargin Margin 14.2% 14.2% 13.9% 13.9% Leadership LeadershipPositions Positions Aggregates Aggregates No. No.11F
Slide 10: Europe Materials - Strategy
EUROPE MATERIALS - STRATEGY IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,646 2,646 2,307 2,307 Operating OperatingProfit Profit 377 377 320 320 Operating OperatingMargin Margin 14.2% 14.2% 13.9% 13.9% Strategy Strategy zzMaintain Maintainand andbuild buildstrong strongmarket
Slide 11: Europe Materials - Outlook
EUROPE MATERIALS - OUTLOOK IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,646 2,646 2,307 2,307 Operating OperatingProfit Profit 377 377 320 320 Operating OperatingMargin Margin 14.2% 14.2% 13.9% 13.9% 2006 2006Outlook Outlook zzBroadly Broadlypositive positiveoutlook outlooka
Slide 12: Europe Products - Positions
EUROPE PRODUCTS - POSITIONS IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,533 2,533 2,245 2,245 Operating OperatingProfit Profit 176 176 191 191 Operating OperatingMargin Margin 6.9% 6.9% 8.5% 8.5% Leadership LeadershipPositions Positions Concrete ConcreteProducts Products No
Slide 13: Europe Products - Strategy
EUROPE PRODUCTS - STRATEGY IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,533 2,533 2,245 2,245 Operating OperatingProfit Profit 176 176 191 191 Operating OperatingMargin Margin 6.9% 6.9% 8.5% 8.5% Strategy Strategy zzBuild Buildleadership leadershippositions positionsininexis
Slide 14: Europe Products - Outlook
EUROPE PRODUCTS - OUTLOOK IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,533 2,533 2,245 2,245 Operating OperatingProfit Profit 176 176 191 191 Operating OperatingMargin Margin 6.9% 6.9% 8.5% 8.5% 2006 2006Outlook Outlook zzExcept Exceptfor forUK UKand andGermany, Germany,mark
Slide 15: Europe Distribution - Positions
EUROPE DISTRIBUTION - POSITIONS IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,193 2,193 1,904 1,904 Operating OperatingProfit Profit 123 123 121 121 Operating OperatingMargin Margin 5.6% 5.6% 6.4% 6.4% Leadership LeadershipPositions Positions Merchanting MerchantingNo.1 No.1
Slide 16: Europe Distribution - Strategy
EUROPE DISTRIBUTION - STRATEGY IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,193 2,193 1,904 1,904 Operating OperatingProfit Profit 123 123 121 121 Operating OperatingMargin Margin 5.6% 5.6% 6.4% 6.4% Strategy Strategy zzExpand Expandexisting existingmerchanting merchantingop
Slide 17: Europe Distribution - Outlook
EUROPE DISTRIBUTION - OUTLOOK IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,193 2,193 1,904 1,904 Operating OperatingProfit Profit 123 123 121 121 Operating OperatingMargin Margin 5.6% 5.6% 6.4% 6.4% 2006 2006Outlook Outlook zzImproving ImprovingDutch Dutchconsumer consumerco
Slide 18: Americas Materials - Positions
AMERICAS MATERIALS - POSITIONS IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 3,165 3,165 2,823 2,823 Operating OperatingProfit Profit 328 328 274 274 Operating OperatingMargin Margin 10.4% 10.4% 9.7% 9.7% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 Leadership LeadershipPositions
Slide 19: Americas Materials - Strategy
AMERICAS MATERIALS - STRATEGY IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 3,165 3,165 2,823 2,823 Operating OperatingProfit Profit 328 328 274 274 Operating OperatingMargin Margin 10.4% 10.4% 9.7% 9.7% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 Strategy Strategy zzLeverage Lev
Slide 20: Americas Materials - Outlook
AMERICAS MATERIALS - OUTLOOK IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 3,165 3,165 2,823 2,823 Operating OperatingProfit Profit 328 328 274 274 Operating OperatingMargin Margin 10.4% 10.4% 9.7% 9.7% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 2006 2006Outlook Outlook zzSAFETE
Slide 21: Americas Products - Positions
AMERICAS PRODUCTS - POSITIONS IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,756 2,756 2,462 2,462 Operating OperatingProfit Profit 308 308 251 251 Operating OperatingMargin Margin 11.2% 11.2% 10.2% 10.2% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 Leadership LeadershipPositions
Slide 22: Americas Products - Strategy
AMERICAS PRODUCTS - STRATEGY IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,756 2,756 2,462 2,462 Operating OperatingProfit Profit 308 308 251 251 Operating OperatingMargin Margin 11.2% 11.2% 10.2% 10.2% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 Strategy Strategy zzExpand Expa
Slide 23: Americas Products - Outlook
AMERICAS PRODUCTS - OUTLOOK IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 2,756 2,756 2,462 2,462 Operating OperatingProfit Profit 308 308 251 251 Operating OperatingMargin Margin 11.2% 11.2% 10.2% 10.2% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 2006 2006Outlook Outlook zzExpec
Slide 24: Americas Distribution - Positions
AMERICAS DISTRIBUTION - POSITIONS IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 1,156 1,156 1,014 1,014 Operating OperatingProfit Profit 80 80 63 63 Operating OperatingMargin Margin 7.0% 7.0% 6.2% 6.2% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 Leadership LeadershipPositions Pos
Slide 25: Americas Distribution - Strategy
AMERICAS DISTRIBUTION - STRATEGY IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 1,156 1,156 1,014 1,014 Operating OperatingProfit Profit 80 80 63 63 Operating OperatingMargin Margin 7.0% 7.0% 6.2% 6.2% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 Strategy Strategy zzCreate Createle
Slide 26: Americas Distribution - Outlook
AMERICAS DISTRIBUTION - OUTLOOK IFRS IFRSFinancials Financials€m €m 2005 2005 2004 2004 Sales Sales 1,156 1,156 1,014 1,014 Operating OperatingProfit Profit 80 80 63 63 Operating OperatingMargin Margin 7.0% 7.0% 6.2% 6.2% $/euro $/euro 1.2438 1.2438 1.2439 1.2439 2006 2006Outlook Outlook zzOn Onbala
Slide 27: 2006 Outlook - Overall
2006 OUTLOOK - OVERALL z Strong profit and development performance in 2005 z Recovery of significant energy cost increases will again be crucial z Current outlook is on the whole positive with good momentum entering 2006 z Gradual pick-up in European economies seems broadly under way z US Residentia
Slide 28: Summary
SUMMARY z Business balance – a strategic strength …. Î Geographic balance – smooths the effects of world economic cycles Î End-use balance – optimises the effects of varying sector demand patterns Î Product balance – provides multiple platforms for growth …. a diversified exposure to construction de
Slide 29: Strategic Vision
STRATEGIC VISION CRH's strategic vision is clear and consistent – "be a responsible international leader in building materials delivering superior Performance and Growth" DRKW Building Materials Conference, London, April 3 2006 29
Slide 30: DRKW Basic Materials Conference, London, April 3rd 2006
DRKW Basic Materials Conference London, April 3rd 2006 Myles Lee, Finance Director DRKW Building Materials Conference, London, April 3 2006 30