Oldcastle Architectural Products Group

Oldcastle Architectural Products Group

Oldcastle Architectural Products Group
Doug Black
CEO
Investor / Analyst Visit, October 2005
1
o
Overview
$1.8bn
$1.8bn
21%
21%
~10%
~10%
197
197
35
35
22
+7,500
+7,500
Sales
Sales(2004)
(2004)
5-yr
5-yrSales
SalesCAGR
CAGR
Op.
Margin
Op. Margin
Locations
Locations
US
USStates
States
Canadian
CanadianProvinces
Provinces
Employees
Employees
60
60::35
35::55 Res/Non-res
Res/Non-res/Infra
/Infra
60
60::40
40 New/RMI
New/RMI
#1 Masonry, Paving, Patio producer in US
#1 Brick producer in Northeast US
#1 Paving and Patio producer in Canada
Investor / Analyst Visit, October 2005
2
o
Development History
Adams
Adams
Amcor
Amcor
1978
1980
1985 1989
Betco
Betco
Superlite
Superlite50%
50%
American
American
Stone
Stone
Mix
Mix
Permacon
Permacon
50%
50%
1994 1996
1999
Glen-Gery
Glen-Gery
Superlite
Superlite100%
100%
~$5m
~$5mSales
Sales
2000
~$1.5bn
~$1.5bn Spend
Spend
61
61Acquisitions
Acquisitions
24
24Greenfields
Greenfields
27
27Years
Years
Investor / Analyst Visit, October 2005
3
Anchor
Anchor
2001
2002
W.R.
W.R.Bonsal
Bonsal
Permacon
Permacon100%
100%
Paver
PaverSystems
Systems50%
50%
Greenleaf
Greenleaf
2003
2004
2005
Northfield
NorthfieldBlock
Block
Matt
MattStone
Stone
$1.8bn
$1.8bnSales
Sales
o
Organization
CEO
Doug Black
Finance
Kelly Elliott
Glen-Gery
President
S. Matsick
Development
Scott Salmon
APG Canada
President
G. Archambault
APG Retail
President
J. Dean
APG West
President
T. Kozikowski
APG Northeast
President
P. Kelly
APG Midwest
President
P. Valentine
APG South
President
K. Haas
Bonsal American
President
D. Maske
Easton Plant
President
Randy Gottlieb
Investor / Analyst Visit, October 2005
4
o
Business Segments
Building Products
Retail
Retail
35%
35%
Lawn & Garden Products
Block
Dry-Mix
Patio / Walls
Bagged stone/soil/mulch
Masonry
Dry-Mix
Masonry
Masonry
APG
APG
2004 Sales:
$1.8bn
Retaining Walls
40%
40%
Clay Brick
Pavers
Hardscapes
Hardscapes
15%
15%
Garden Walls
LW Aggregates
Specialty/Concrete stone
"Niche"
"Niche"
Roof Tiles
10%
10%
Dec. Precast
Investor / Analyst Visit, October 2005
5
o
APG Evolution
Era 1
Geographic
Expansion
Era 2
+ Product
Expansion
Era 3
+ Channel
Expansion
Era 4
Leveraging Infrastructure
to Fully Penetrate
Multiple Channels
End-Use
New Build
+ RMI (Prof)
+ RMI (Retail)
Segment
Commercial
+ Residential
+ DIY + Infrastructure
+ New Segments
Customers
Contractors
+ Distributors
+ Homebuilders + Homecenters
+ Extend Reach
Market
Local
+ National/Regional
+ Geographic Infill
Brand
Company
+ National
+ Customer
+ Extend Reach
Products
Masonry
+ Hardscapes
+ Patio Products + Packaged Mixes
+ Expand Range
Investor / Analyst Visit, October 2005
6
o
APG Retail
Patio Products
Dry-Mixes
Bagged Stone, Soil & Mulch
Primary
’s, Home
Primarycustomers
customersare
areLowe
Lowe’s,
HomeDepot,
Depot,
Walmart
, Independents
Walmart,
Independents
Investor / Analyst Visit, October 2005
7
o
Masonry
Architectural
Glazed Block
Standard Block
Structural Retaining Wall
Clay Brick
Primary
Primarycustomers
customersare
aremasonry
masonrycontractors
contractors
Investor / Analyst Visit, October 2005
8
o
Hardscapes
Hardscape Growth
Belgard® program = demand creation
+
branded products
+
contractor / dealer
partnerships
Primary
Primarycustomers
customersare
arelandscaping
landscaping
contractors
contractorsand
anddealers
dealers
Investor / Analyst Visit, October 2005
9
o
"Niche"
Decorative Precast
Natural Stone
Counter Tops
Roof Tiles
Primary
Primarycustomers
customersare
arespecialty
specialtysubcontractors
subcontractors
Investor / Analyst Visit, October 2005
10
o
The Belgard Envelope
DUFFERIN®
Stone
Hardscapes
Value-added
Value-addedproduct
productbundles
bundles
Investor / Analyst Visit, October 2005
11
o
Strategy
z
Retail – maximise value from the retail channel
Î Dedicated
Î Bundled
Î Product
Î Plant
z
innovation and branding
Masonry – expand the core with value-added products
Î Create
with national customers
regional leadership positions
Î Improve
the product mix
Hardscapes – grow and exploit the market opportunity
Î Aggressive
marketing to create demand
Î Proprietary
products and processes
Î New
z
offerings in mixed loads to improve delivery efficiencies
rollout to achieve low cost production
Î Partner
z
customer teams
plant capacity & selective acquisitions
"Niche" – identify platforms for growth that complement masonry,
hardscape and retail offerings
Investor / Analyst Visit, October 2005
12
o
Compelling Business Proposition
z
Strong US residential fundamentals underpin new build and RMI demand
z
Pursue growth through a Balanced & Value-added business mix
z
Greenfield development now a core APG skill
z
New core platforms: Dry Mix, Decorative Stone, Soil/Mulch
z
Significant acquisition opportunities identified in all core businesses
Geography,
Geography,Product,
Product,Channel
ChannelMix
Mix
==
Three
Threetiered
tieredgrowth
growthpotential
potential
Investor / Analyst Visit, October 2005
13
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