Presentation

Transcription

Presentation

CRH plc
Investor/Analyst Visit
Switzerland
23 – 25 May, 2007
Europe Products &
Distribution
Máirtín Clarke
Managing Director
Investor/Analyst Switzerland Visit, 2323-25 May 2007
1
Europe Products & Distribution
Agenda
Operations & Strategy …….. Máirtín Clarke
Focus on Switzerland ……... Erik Bax
2
Overview
Prods
Dist
Prods
Dist Total
Total
Sales
€3.2Bn
Sales 2006
2006
€3.2Bn €2.8Bn
€2.8Bn €6Bn
€6Bn
5-yr
c.
5-yr Sales
Sales CAGR
CAGR
c. 22%
22%
Op.
7.9%
5.5%
Op. Margin*
Margin*
7.9%
5.5% 6.8%
6.8%
Countries
Countries
Locations
Locations
Employees
Employees
Res
60%
15
15
663
663
18,000
18,000
Non-Res
30%
77
17
17
537
537 1,200
1,200
8,000
8,000 26,000
26,000
New
60%
RMI
40%
Infra
10%
3
*Excludes non-recurring items
Organisation
Máirtín
MáirtínClarke
Clarke
Managing
ManagingDirector
Director
Peter
PeterErkamp
Erkamp
Finance
FinanceDirector
Director
Rudy
RudyAertgeerts
Aertgeerts
Concrete
ConcreteProducts
Products
Michael
MichaelStirling
Stirling
Human
HumanResources
Resources
Wayne
WayneSheppard
Sheppard
Clay
Products
Clay Products
Marc
MarcSt.
St.Nicolaas
Nicolaas
Building
Products
Building Products
Erik
ErikBax
Bax
Distribution
Distribution
.... A blend of experience, background and cultures ....
4
Development
Development Spend, Sales and EBIT
Sales
€m
Cementbouw
100% Ops & JV
7,000
6,000
Jura
Distribution
5,000
4,000
EHL
Concrete
Products
Stradal
Concrete
Products
EBIT/Dev Spend
€m
Halfen
Construction
Accessories
1,200
1,000
Gétaz
Romang
Ibstock
Brick
buyout
800
600
3,000
400
2,000
200
1,000
0
0
1999
2000
2001
2002
2003
Development Spend
2004
Sales
5
2005
2006
EBIT
2007 to
date
Concrete Products
Architectural
Largest paving/landscaping group in Europe
Landscape & infrastructure paving, patio tiles, architectural masonry,
poles, vaults, channels, environmental products
Structural
2nd largest producer in Europe
Elements & Integrated Systems: flooring & walling, sandl-ime bricks,
lightweight concrete products, stairs, structural beams & columns
6
Concrete Products
European Leader with strong national positions
Sales
Sales 2006
2006
5-yr
5-yr Sales
Sales CAGR
CAGR
Op.
Op. Margin*
Margin*
€1.6Bn
€1.6Bn
c.
c. 30%
30%
c.
c. 9%
9%
Pavers
Pavers &
& Blocks
Blocks 11.4m
11.4m tonnes
tonnes
Structural
6.3m
Structural
6.3m tonnes
tonnes

Architectural
Architectural -- 60%
60%
¾
¾ No.1
No.1 Paving
Paving -- Netherlands,
Netherlands,
Belgium,
Belgium, France,
France, Slovakia,
Slovakia,
Germany
Germany
¾
¾ No.2
No.2 Paving
Paving -- Denmark
Denmark
¾
¾ No.1
No.1 Arch
Arch Masonry
Masonry -- UK
UK

Structural
Structural -- 40%
40%
¾
¾ No.1
No.1 Netherlands,
Netherlands, Belgium,
Belgium,
Switzerland,
Switzerland, Denmark,
Denmark, Poland
Poland
7
Concrete Products - Strategy
Architectural
Annualised Sales
by Country & Sector
UK 13%
Poland
Denmark
Italy
Slovakia
France
25%
Germany
20%
Res
40%
Infra
35%

Consolidate
Consolidate in
in Established
Established
Regions
Regions (NL,
(NL, BE,
BE, FR,
FR, DE,
DE, UK)
UK) ––
Extract
Extract synergies
synergies &
& grow
grow through
through
bolt-ons
bolt-ons

Develop
Develop in
in New
New Regions
Regions
(Scandinavia,
(Scandinavia, CEE,
CEE, Italy):
Italy): Develop
Develop
markets
markets &
& accelerate
accelerate growth
growth

Establish
Establish further
further footholds
footholds in
in
Med
Med region
region and
and CEE
CEE

Provide
Provide support
support from
from established
established
to
to newer
newer regions:
regions: product
product
assortment,
assortment, logistics,
logistics, marketing
marketing
skills,
skills, technology
technology
NL 15%
Belgium
15%
New
60%
Non-Res
25%
RMI
40%
8
Concrete Products - Strategy
Structural
Annualised Sales
by Country & Sector
France
Belgium

Established
Established Regions
Regions (NL,
(NL, BE,
BE,
DK,
DK, CH)
CH)
¾
¾ Extract
Extract synergies
synergies
¾
¾ Promote
Promote precast
precast penetration
penetration
¾
¾ Develop
Develop Systems
Systems approach
approach

Adjacent
Adjacent Regions
Regions (FR
(FR &
& DE)
DE)
¾
¾ Replicate
Replicate successful
successful model
model in
in
France
France &
& Germany
Germany

Establish
Establish New
New Platforms
Platforms (Med
(Med
region
region and
and CEE)
CEE)

Achieve
Achieve excellence
excellence –– through
through
first
first class
class engineering,
engineering, project
project
management,
management, logistics
logistics and
and
marketing
marketing skills
skills
Switz
Denmark
30%
13%
NL 47%
Res
50%
New
95%
Non-Res
50%
RMI
5%
9
Clay Products
Cladding Solutions
Facing bricks & Façade solutions
Structural
Pavers – Landscape & infrastructure paving
Roof tiles – Standard & specialised roof tiles
Blocks – Structural blocks
10
Clay Products
Strong regional positions
Sales
Sales 2006
2006
5-yr
5-yr Sales
Sales CAGR
CAGR
Op.
Op. Margin
Margin
Volumes
Volumes
€0.4Bn
€0.4Bn
c.
c. 4%
4%
c.
c. 9%
9%
3.0m
3.0m tonnes
tonnes

No
No 22 facing
facing bricks,
bricks, pavers
pavers and
and
blocks
blocks in
in Europe
Europe

Facing
Facing bricks
bricks
No.1
No.1 UK
UK facing
facing bricks
bricks
¾
¾ No.1
No.1 NL
NL top-segment
top-segment facing
facing bricks
bricks
¾
¾ Top
Top 22 Poland
Poland facing
facing bricks
bricks
¾
¾

Landscape
Landscape &
& infra
infra paving
paving
No.2
No.2 German
German clay
clay pavers
pavers
¾
¾ No.2
No.2 Dutch
Dutch clay
clay pavers
pavers
¾
¾

Structural
Structural blocks
blocks
¾
¾
11
Strong
Strong regional
regional player
player in
in Poland
Poland
Clay Products
Strategy
Annualised Sales
by Country & Sector

UK,
UK, Netherlands
Netherlands and
and manage
manage
UK 60%
improving
improving German
German market
market
Poland

Germany
Strengthen
Strengthen leadership
leadership positions
positions in
in
Polish
Polish market
market and
and focus
focus
NL 25%
Belgium
Res
85%
development
development on
on CEE
CEE

New
70%
Infra
5%
Optimise
Optimise capacity
capacity utilisation,
utilisation, cost
cost
efficiencies
efficiencies

Non-Res
10%
Expand
Expand presence
presence in
in fast
fast growing
growing
RMI
30%
12
Invest
Invest to
to improve
improve energy
energy
efficiency,
efficiency, enhance
enhance flexibility
flexibility
Building Products
Construction Accessories
Insulation
F&S, D&V, RSA
Metal & plastic accessories
for construction
Foam-based insulation:
EPS, XPS, XPE
PUR/PIR
Fences, gates, mobile
fencing, perimeter security
& access control
Continuous rooflights,
roof domes, roofing
systems, active & natural
ventilation systems
Roller Shutter/Awnings
components & systems
13
Building Products
Building positions in growth sectors
Sales
Sales 2006
2006
5-yr
5-yr Sales
Sales CAGR
CAGR
Op.
Op. Margin
Margin
€1.2Bn
€1.2Bn
c.
c. 24%
24%
c.
c. 6%
6%

Construction
Accessories
¾
¾
No.1
No.1 in
in Western
Western Europe
Europe

Insulation
Insulation
¾
¾
Leading
Leading player
player in
in European
European foam
foam
3
insulation
insulation -- 6.3m
6.3m m
m3/year
/year

F&S,
F&S, D&V,
D&V, RSA
RSA
No.1
No.1 security
security fencing
fencing &
& perimeter
perimeter
protection
protection in
in Europe
Europe -- 3.0m
3.0m lineal
lineal mtrs
mtrs
¾
¾ Top
Top 22 Europe
Europe –– glass
glass structures,
structures, plastic
plastic
rooflights,
rooflights, natural
natural ventilation
ventilation systems
systems -2
1.2m
1.2m m
m2
¾
¾ No.1
No.1 in
in the
the Netherlands
Netherlands RSA
RSA
¾
¾
14
Building Products

2006 Sales €0.3Bn
by Country
UK
France
13%
Switz Poland
Sweden
Spain
Accessory
Accessory products
products used
used in
in precast
precast
industry
industry and
and on-site
on-site to
to improve:
improve:
¾
¾ Building
Building process
process efficiency
efficiency
(easy
(easy fixing,
fixing, formwork
formwork
accessories,
accessories, spacers,
spacers, lifting
lifting and
and
transport
transport accessories)
accessories)
¾
¾ Technical
Technical performance
performance
(sealing,
(sealing, acoustics,
acoustics, dowels,
dowels,
balcony
balcony insulation)
insulation)
New
95%
Others
Non-Res
70%
NL
Infra
10%
Belgium
10%
Germany
40%
Res
20%
Op Margin c. 10%
15
RMI
5%
Building Products
Insulation

Growing
Growing market
market driven
driven by
by
¾
¾ Regulation
Regulation and
and environmental
environmental
considerations
considerations
¾
¾ Changing
Changing attitudes
attitudes towards
towards
building
building energy
energy efficiency
efficiency
¾
¾ Strong
Strong New
New build
build and
and RMI
RMI
opportunities
opportunities
2006 Sales €0.4Bn
by Country
UK
13%
New
65%
Poland Denmark
Ireland
Finland
Res
75%
Sweden
Others
Germany
20%
Non-Res
20%
NL 35%
Infra
5%
Op Margin c. 4%
(in recovery mode)
16
RMI
35%
Building Products
Fencing & Security, Daylight & Ventilation, Roller Shutters & Awnings

Complementary
Complementary building
building products
products
used
used to
to control
control and
and enhance
enhance the
the
building
building environment:
environment:
¾
¾ Growing
Growing markets
markets driven
driven by
by
increasing
increasing demand
demand for
for Climate,
Climate,
Security
Security &
& Entrance
Entrance Control
Control
2006 Sales €0.5Bn
by Country
New
New75%
France
UK
Germany
25%
Non-Res
85%
Ireland
Others
95%
Infra
5%
Belgium
Res
10%
NL 40%
Op Margin c. 6%
(impacted by weak D&V in 2006)
17
RMI
RMI
25%
5%
Building Products - Strategy
Building positions in growth sectors

Construction
Accessories
¾
¾ Expand
Expand our
our pan-European
pan-European presence
presence in
in this
this fast-growing,
fast-growing, fragmented
fragmented market
market

Insulation
Insulation
¾
¾ Continue
Continue profit/margin
profit/margin recovery
recovery programme
programme and
and best
best practice
practice exchange
exchange
¾
¾ Build
Build on
on leading
leading positions
positions and
and develop
develop improved
improved insulation
insulation systems
systems
¾
¾ Selective
Selective acquisitions
acquisitions and
and greenfielding
greenfielding in
in niche
niche sectors
sectors

F&S,
F&S, D&V,
D&V, RSA
RSA
¾
¾ Grow
Grow security
security fencing
fencing &
& perimeter
perimeter protection
protection from
from current
current strong
strong base
base
¾
¾ D&V:
D&V: Focus
Focus on
on organic
organic profit/margin
profit/margin improvement
improvement &
& develop
develop in
in new
new product
product areas
areas
¾
¾ Build
Build on
on leading
leading RSA
RSA Dutch
Dutch position;
position; expand
expand to
to other
other countries
countries
18
Distribution
Professional Builders Merchants
General heavy building materials merchants, cash & carry and
roofing merchants
DIY
Specialist Merchants
Broad consumer-oriented
light building materials outlets
Ceramics & Sanitary Ware,
Aluminium, Ironmongery
19
Distribution
7 countries, sales c. €3.5Bn post Gétaz-Romang
Sales
Sales 2006
2006
5-yr
5-yr Sales
Sales CAGR
CAGR
Op.
Op. Margin*
Margin*
Builders
Builders Merch
Merch
DIY
DIY

€2.8Bn
€2.8Bn
c.
c. 23%
23%
5.5%
5.5%
331
331 branches
branches
206
206 stores
stores
Builders
Builders Merchants
Merchants -- 72%
72%
¾
¾ General
General heavy
heavy building
building
materials
materials merchants
merchants
¾
¾ Specialised
Specialised merchants
merchants in
in flat
flat
roofing
roofing products,
products, sanitary
sanitary ware
ware
and
and tiles
tiles

DIY
DIY -- 28%
28%
¾
¾ Broad
Broad consumer-oriented
consumer-oriented light
light
building
building materials
materials outlets
outlets
20
CRH Distribution Europe
Building a pan-European Distribution group

In
In mature
mature economies
economies

With
With top
top class
class regional
regional positions
positions
2006 Sales €2.8Bn*
by Country
France 10%

Strong
Strong commercial
commercial focus
focus on
on
regional
regional markets
markets
Switz
15%
Germany
¾Supported
¾Supported by
by strong
strong brands
brands
Austria
10%
Portugal
1%
10%
¾Driven
¾Driven by
by focused
focused and
and
entrepreneurial
entrepreneurial management
management
teams
teams

Centralised
Centralised purchasing,
purchasing, logistics
logistics
Benelux
54%
and
and back-office
back-office by
by region
region to
to achieve
achieve
operational
operational excellence
excellence
Op Margin 5.5%

Achieving
Achieving industry
industry best
best practice
practice
(excl. Non-recurring items)
standards
standards of
of health
health and
and safety
safety
*Excludes Gétaz-Romang
21
Distribution
Builders Merchants

Netherlands:
Netherlands: No.1
No.1

Switzerland
Switzerland No.1
No.1 (incl
(incl Gétaz
Gétaz Romang)
Romang)

Austria:
Austria: No.1
No.1

France
France
¾No.2
¾No.2 in
in Ile
Ile de
de France
France
¾No.1
¾No.1 in
in SE
SE (Samse
(Samse 22%/Doras
22%/Doras 58%)
58%)

Germany:
Germany: No.3
No.3 (Bauking
(Bauking 48%)
48%)
2006 Sales €2.0Bn
by Country
New
60%
Switz 20%
Austria
France
15%
15%
Res
60%
Germany
10%
Infra
10%
Benelux 40%
Op Margin c. 4%
Non-Res
30%
22
RMI
40%
Distribution
DIY
2006 Sales €0.8Bn
by Country

Benelux
Benelux
¾
¾ No.1
No.1 Netherlands
Netherlands
¾
¾ No.2
No.2 Belgium
Belgium
¾
¾ Member
Member of
of Gamma
Gamma and
and Karwei
Karwei
franchises
franchises

Portugal:
Portugal: No.2
No.2 (MaxMat
(MaxMat 50%)
50%)

Germany
Germany
¾
¾ Member
Member of
of Hagebau
Hagebau franchise
franchise
(Bauking
(Bauking 48%)
48%)
Germany
Portugal
RMI
100%
Benelux
90%
Res
100%
Op Margin c. 10%
23
Distribution - Strategy
Continue to build on success

Builders
Builders Merchants
Merchants
¾
¾
¾
¾

Build
Build on
on our
our strong
strong local
local positions
positions
Expand
Expand into
into neighbouring
neighbouring regions
regions
DIY
DIY
¾
¾ Continue
Continue to
to grow
grow in
in Benelux
Benelux
Portugal
Portugal and
and Germany
Germany through
through
greenfield
greenfield investments
investments and
and
acquisitions
acquisitions

New
New Regions
Regions
¾
¾ Develop
Develop new
new regions
regions both
both in
in
builders
builders merchants
merchants and
and DIY
DIY

24
Continue
Continue to
to realise
realise operational
operational
excellence
excellence from
from expanded
expanded
network
network
Conclusion
Performance enhancement & growth to continue

Emerging from difficult markets

Good start to 2007, optimistic outlook

Existing businesses, well positioned to capitalise on:
¾ Strong solid platforms post restructuring in early 2000’s
¾ Scale effect & leading market positions
¾ Increasing construction demand
¾ Aim to stretch our businesses, increase sales & margins

Development, well positioned to grow in mature & developing regions
¾ Strong pipeline, robust development activity
¾ High degree of fragmentation in our mature, developed core markets
¾ Excellent opportunities in new regions and Eastern Europe
.... Leading to performance enhancement and significant growth ....
25