Presentation

Transcription

Presentation

CRH plc
Investor/Analyst
Visit Switzerland
23 – 25 May, 2007
CRH Europe
Distribution
Focus on
Switzerland
Erik Bax,
Managing Director
Investor/Analyst Swiss Visit, 2323-25 May 2007
1
Development History
Building the leading Distribution position in Switzerland
BauBedarf
BauBedarf
Vicom
Vicom
2000
2001
2002
2003
Fr.
Fr.Schneider
Schneider
Baucasch
Baucasch
2004
2005
2006
Gétaz
Gétaz Romang
Romang
2007
BAB,
BAB,BAF
BAF&&BAW
BAW
BMH
BMHHägendorf
Hägendorf
Dennler
Dennler
Richner
Richner
Proforma
Proforma2006
2006
Sales
Sales€1.0Bn
€1.0Bn
Margin
Marginc.
c.5.5%
5.5%
c.
c.6.5%
6.5%with
withsynergies
synergies
c.
c.€455m
€455mSpend
Spend
88Deals
Deals
2
Richner BauBedarf
Market leader in German-speaking Switzerland
Sales
Sales (2006)
(2006)
EBIT
EBIT margin
margin
€0.4Bn
€0.4Bn
c.
c. 4.5%
4.5%
Locations
Locations
Employees
Employees
58
58
800
800
Res:Non-Res:Infra
Res:Non-Res:Infra
New:RMI
New:RMI
Tiles
9%
Sanitary
Ware
26%
3
Other
3%
60:25:15
60:25:15
60:40
60:40
Building
Materials
62%
Gétaz Romang
Market leader in French-speaking Switzerland
Sales
Sales (2006)
(2006)
EBIT
EBIT margin
margin
Locations
Locations
Employees
Employees
Other
19%
€0.55Bn
€0.55Bn
c.
c. 6.5%
6.5%
43
43
1,383
1,383
Building
Materials
31%
Heating &
Plumbing
9%
Wood 12%
Tiles 8%
4
Sanitary
Ware
21%
Acquisition of Gétaz Romang
An excellent geographical fit
Richner BauBedarf
Gétaz Romang
5
Acquisition of Gétaz Romang
Friendly Public Tender Offer

Agreed acquisition of a 23.6% stake, at a fixed price of CHF 1,125 per
share, prior to public tender offer

Friendly public tender offer (99.24% acceptance) on remaining 76.4%
shares at CHF 1,125 per share

CRH now controls 99.49%, and intends to petition for invalidation of
remaining publicly held shares

Intends to delist Gétaz Romang from the Swiss Stock Exchange
6
Deal synergies
Driving value on many fronts

Deal adding value at acceptable multiples
Multiples

2006 results
Pre-synergies
Post-synergies
Sales
0.65
0.65
EBITDA
8.4x
c. 7x
Anticipated synergies c. 1% of combined sales
¾ Combination of purchase volume
¾ Cost reduction, integration and delisting

NWC improvement :
¾ Improved stock turn
• focus on inventory management and improved purchasing conditions
• logistic optimisation via combination of distribution centres
¾ Improvement of creditors
• renegotiating payment terms and conditions with suppliers
7
Management challenges
Performance and Growth

Performance
¾ Delivering all synergies as soon as possible
¾ Integration and commitment of teams at top management level
¾ IT integration is critical for back-office and logistics synergies

Growth
¾ Greenfields and acquisitions to infill French and German-speaking regions
¾ Acquisitions in Italian-speaking Switzerland to realise nationwide coverage
8
Switzerland Distribution
Where we will visit

Richner Sanitaryware and Ceramic Tile Showroom, Aarau
¾ Richner AG (founded 1799), acquired with Jura Holding Dec ‘00
¾ Distribution of sanitary ware and ceramic tiles
¾ Customers are plumbers & tilers, private/public building owners,
architects and general contractors

BR Bauhandel Hunzenschwil Builders Merchant
¾ HQ of Richner building materials (built 1996)
¾ Integrated into BauBedarf post acquisition Oct ‘02
¾ Distribution of building materials and tools
¾ Main customers are professional contractors, roof layers,
plasterers, gardeners and other craftsmen
9