Europe Materials Divisional Profile Declan Doyle

Transcription

1 Europe Materials Divisional Profile Declan Doyle 1

2 Europe Materials Ireland Spain Poland & Ukraine Finland & Baltics Switzerland Portugal (49%) Financials m Sales 1,984 1,927 1,861 Operating Profit Avg Net Assets 1,548 1,619 1,556 Operating Margin 13.8% 13.9% 14.6% Tunisia (48%) Israel (25%) 2003 Sales 8% 4% Ireland 10% 4% 2003 Op Profit 10% Finland/Baltics 7% Poland/Ukraine 11% 50% Spain 10% 50% Switzerland 17% Israel 19% 2

3 Europe Materials - Organisation Managing Director Declan Doyle Finance Alan Connolly Development Frank Heisterkamp Technical Eamon Geraghty Chief Operating Officer Anthony O'Loghlen Central Eastern Europe Declan Maguire ICL Roadstone Wood / Spain / Finland / Jim Nolan Farrans Group Donal Dempsey Portugal Albert Manifold Switzerland Henry Morris 3

4 Market Positions & 2003 Product Volumes Market Positions Ireland Spain Poland Ukraine Finland Switzerland Israel Portugal Total (incl NI) (Catalonia) Vols* Cement # 1 # 3 # 2 # 1 # 2 # 1 # mt Aggregates # 1 # 1 # 2 # 1 # mt Readymix # 1 # 1 # 1 # 2 8.7mcmts Lime # 1 # 2 1.5mt Concrete Products # 1 # 1 # 4 4.6mt Blacktop # 1 # 5 3.2mt *Total volumes exclude Portugal 4

5 Europe Materials - Development Sales m Establishment of Europe Materials Division Poland entry Development Spend, Sales and EBITA Finnsementti/Rudus Finland/Baltics Jura Switzerland EBITA/Dev Spend m Secil Portugal # of Deals Development Spend Sales EBITA 5

6 Regional Review Ireland Spain Poland/Ukraine Finland/Baltics Switzerland Portugal 6

7 Ireland - Regional Review bn Republic of Ireland Output in constant prices 2003 Sales 993m 15 Operating Margin c 14% E 2004F 2005F 2006F Total Construction Market 23.3bn (18% GDP) Residential Non-Residential Infrastructure 18% 19% 63% Invest Invest in in reserves reserves and and plant plant Focus Focus on on customer customer service service On-going On-going cost cost reduction reduction Bolt-on Bolt-on acquisitions acquisitions Source: Euroconstruct June

8 Spain - Regional Review bn Output in constant prices 2003 Sales 206m Operating Margin c 9% E 2004F 2005F 2006F Total Construction Market 127.5bn (17% GDP) Residential Non-Residential Infrastructure Source: Euroconstruct June % 21% 47% Optimise Optimise price/volumes price/volumes Invest Invest in in reserves reserves and and plant plant Develop Develop new new regional regional & product product markets markets 8

9 Poland/Ukraine - Regional Review bn Poland Output in constant prices 2003 Sales 226m Operating Margin c 12% E 2004F 2005F 2006F Total Construction Market 18.4bn (10% GDP) Residential Non-Residential Infrastructure Source: Euroconstruct June % 46% 23% Strengthen Strengthen regional regional market market positions positions Extend Extend product product coverage coverage Improve Improve product product margins margins Continue Continue to to develop develop management management resources resources 9

10 Finland/Baltics - Regional Review bn Finland Output in constant prices 2003 Sales 324m Op. Margin c 15% E 2004F 2005F 2006F Total Construction Market 18.8bn (13% GDP) Residential Non-Residential Infrastucture Source: Euroconstruct June % 41% 38% Improve Improve margins margins Bolt-on Bolt-on acquisitions acquisitions to to diversify diversify the the product product and and sectoral sectoral balance balance Strengthen Strengthen positions positions in in St. St. Petersburg Petersburg and and the the Baltic Baltic States States 10

11 Switzerland - Regional Review bn Output in constant prices 2003 Sales 164m Operating Margin c 17% E 2004F 2005F 2006F Total Construction Market 32.3bn (11% GDP) 30% 39% Bolt-on Bolt-on acquisitions acquisitions Maximise Maximise alternative alternative fuel fuel usage usage Residential Non-Residential Infrastructure Source: Euroconstruct June % Explore Explore perimeter perimeter areas areas 11

12 Portugal - Regional Review bn Output in constant prices 2003 Sales (49%) 205m Operating Margin c 17% Acquired June E 2004F 2005F 2006F Total Construction Market 24.0bn (17% GDP) Residential Non-Residential Infrastructure 29% 26% 45% Invest Invest in in related related businesses businesses Look Look at at further further opportunities opportunities in in the the Mediterranean Mediterranean Benefits Benefits from from Best Best Practice Practice Source: Euroconstruct June

13 Europe Materials - Established Markets: Extend Maintain Maintain & Build Build Ireland Ireland Iberia Iberia Poland Poland Finland Finland Switzerland Switzerland Iberia Iberia Mature Mature EU EU Developing Markets: Cautious Cautious Development Development Baltic Baltic States States Russia Russia Ukraine Ukraine Tunisia Tunisia Israel Israel Growth Options Accession Accession States States Mediterranean Mediterranean Former Former CIS CIS Far Far East East 13

14 in Action - CRH in Poland Why Poland? Long association as a CRH trading partner Transition well advanced - worst was over by 1995: Inflation 250% in 1990, 15% in 1995 GDP growth %, after output fall of +25% Set to join EU & NATO Strategic location, at heart of enlarged Europe Commitment to democracy and West People and culture - a big plus Long-term opportunity for significant growth 14

15 in Action - Poland Exposure to Market: High Medium Low MARKETS Products Market Position New Res New Non- Res Infrastructure / Civil RMI Other Turnover Cement # 3 14 m PLN 65m 15

16 in Action - Poland 2000 Exposure to Market: High Medium Low MARKETS Products Market Position New Res New Non- Res Infrastructure / Civil RMI Other Turnover Cement # 3 Aggregates # 1 Readymix m PLN 830m Concrete Products # 4 Blacktop - 16

17 in Action - Poland 2003 Exposure to Market: High Medium Low MARKETS Products Market Position New Res New Non- Res Infrastructure / Civil RMI Other Turnover Cement # 3 Aggregates # 2 Readymix - Concrete Products # m PLN 870m Blacktop - Lime # 2 Aerated Blocks # 2 17

18 Poland Future Prospects Built great business in short time. Strong early returns Sustainable economic growth supported by EU accession and of structural reforms EU structural funds to benefit economy & construction sector: Funds Breakdown: 12.1bn : 15.5bn in total 12.1 bn construction related : 10 bn p.a. (5% of GDP) Transport Infrastructure 12% Agriculture 12% Motorways & Sewage Treatment 43% Residential housing deficit expected to improve as interest rates Regional Development 33% fall and government housing strategy implemented Strong local management team now leading growth for CRH businesses Evolving organisation - products/regions 18

19 Europe Materials Summary Strong positions in stable economies Well positioned to benefit from EU enlargement Mediterranean options Good reserves in strategic locations Increased use of alternative fuels Good cash flows Strong leadership development focus to maintain track record of growth 19