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
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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