scope of crh & future developments in materials supply and ... · scope of crh & future...

Scope of CRH & future

developments in materials

supply and technologies

Oliver MahonMarch 2018

Our Heritage …from small local beginnings …

1970 1980 1990 2000 2010 2015

Entry into

the Americas

Step out into

US Glass

Entry into

US

distribution

Lafarge Holcim

assets acquired

Entry into

Eastern

Europe

Entry into

China / India

Opened

Regional HQ in

Singapore

Beyond Ireland

into Netherlands

1970

€28mRevenue

5,350People

Foundation of CRH

100%Ireland

1 | CRH plc | March 2018

2016 2017

To a Global leader today ...

#1North

America

#2Worldwide

31Countries

Fortune

500Company

3,800Locations

€28bnRevenue

2 | CRH plc | March 2018

• Aggregates

• Cement

• Asphalt

• Readymixed Concrete

• Precast Concrete

• Architectural Products

• Glass and Glazing Systems

• Construction Accessories

• Shutters & Awnings

• Perimeter Protection

• Network Access Products

• General Builders Merchants –

to the professional contractor

• SHAP – Specialist distribution of

sanitary, heating & plumbing

• DIY – Home improvement

products to the consumer

Heavyside

Materials

Lightside

Products

Building

Materials

Distribution

Our Products …

Servicing the breadth of construction – exposure to multiple demand drivers

3 | CRH plc | March 2018

2017 Trading by Region …

Europe

€12.5bn

€1.3bn

Americas

€14.6bn

€2.0bn

Asia

€0.4bn

€0.1bn

Group

€27.6bn

€3.3bn

Sales

EBITDA

4 | CRH plc | March 2018

>42,800People

1,750Operating Locations

Americas

• #1 building materials business in North America

• Balanced across all sectors

• 55% exposure to infrastructure

• Operations in all 50 states, nine Canadian

provinces and Southeast Brazil

• Two divisions; Americas Materials &

Americas Products

5 | CRH plc | March 2018

Europe

• Organised in to three segments; Heavyside Materials, Lightside

Products, Building Materials Distribution

• #1 in Heavyside Materials

• Vertically integrated heavyside businesses

• Leading supplier of innovative construction products

• Building materials distribution to professional & private customers

• Operations in 23 countries

• Balanced by geography and end-use

>42,600People

2,000Operating Locations

| CRH plc | March 20186

CRH in Asia

• Cement leadership positions

• #2 Philippines

• #1 North East China (26% stake)

• #1 Andhra Pradesh & Telangana India (50% stake)

• Lightside operations in Malaysia and Australia

• Growth platforms with exposure to

industrialisation, urbanisation and population related

construction demand in Asia’s developing economies

>9,500People

50mtCement Capacity

10Operating Locations

Strong Sustainability performance …

| CRH plc | March 20188

Future

developments in

materials supply

and technologies

March 2018

9

Fundamentals reshaping the world…..

• 65m people a year will

move to cities

• Global growth will

come from 600

megacities, 440 of

which are in the

emerging world

Industrialisation and

urbanisation in

emerging economies

Disruptive

technologies

• There are 12 that will

change the world.

Some will affect

construction materials

more than as others

Global

interconnections

• Global tradeflows

increased by a factor

of 10 between 1990

and 2013

• This has slowed since

the financial crisis

• The proportion of

people 65+ in the

developed world will

have doubled from

2000 to 2050

• It will treble in the

emerging world

An ageing world

| CRH plc | March 201810

Adoption of new technologies is accelerating...

Radio

38 yrsTelevision

13 yrsiPod

4 yrsInternet

3 yrsFacebook

1 yrTwitter

9 mthsPokemon

1 mth

| CRH plc | March 201811

Time for new technologies to reach 50m users….

How buildings interact

with people and the

environment is ever

more important

Construction is built on 6 market fundamentals….

Construction

markets are local

and you need to be

close to the growth to

succeed in heavyside

and distribution …

less so in lightside

#2

The global

construction industry

is large and growing,

but also highly cyclical

#3

#4

Construction is

governed by the

fundamentals

of engineering,

which are

enduring

#1

Productivity in the

construction sector

overall has not

improved much for

many years

The construction

sector is heavily

regulated and risk

adverse

#5

#6

| CRH plc | March 201812

1

3

1

4

1

5

1

6

1

7

1

8

5 Strategic realities facing the construction industry…

Future

global

growth

Sustainable

construction Slow

change in

heavyside

materials

Technological

disruption

Innovation

| CRH plc | March 201819

Future global

growth

| CRH plc | March 201820

Sustainable

construction

| CRH plc | March 201821

Slow change

in heavyside

materials

| CRH plc | March 201822

2

3

Technological

disruption

| CRH plc | March 201823

Innovation

| CRH plc | March 201824

THANK YOU