CRH

1
CRH

2
CRH

• NAME Declan Maguire
• AGE 44 years
• QUALIFICATIONS DIP. IND. ENG. B.L. M.B.A.
• TITLE Regional Director
• Central Eastern Europe
• EXPERIENCE 20 years with CRH
• BASE Warsaw, Poland

3
CRH - OVERVIEW

• 1970 Irish Cement Roadstone Sales 26m,
  Ireland 95
• Embarked on a clear, consistent development
  strategy
• Now 24 countries 3 continents 2,100
  locations 60,000 people
• Sales 12.8 bn across three core businesses
• Listed Dublin, London, NASDAQ Eurotop 300 stock
• Market capitalisation c.10.8 bn Top 5 in sector
  worldwide
• 19 CAGR in Total Shareholder Return since 1970

4
FEDERAL GROUP ORGANISED FOR GROWTH
5
EUROPE MATERIALS

• m 2004 2003
• Sales 2,354 1,984
• Op profit 339 273
• Op margin 14.4 13.8
• 400 locations, 13 Countries
• 12,400 employees (incl. JVs Assoc)
• New build / RMI 80/20
• Residential 40
• Non-Res 30
• Infrastructure 30

6
EUROPE MATERIALS CentralEastern Europe
Grupa Ozarow, Podilsky Cement Bosta Beton,Polbet
B-Complex, Drogomex, Faelbud, Grupa Prefabet,
Masfalt, OKSM
Annualised Production
7
CRH in Ukraine

• PODILSKY CEMENT
• November 1998 CRH acquired 75 1 share of
  Podilsky Cement, continued to purchase shares as
  they became available. Today CRH owns 94.
• Podilsky Cement is located in the city of
  Kamianets, 420 kms South East of Kiev and 360 kms
  East of Polish border.
• Kamianets city is approx. 70k inhabitants.

8
CRH in Ukraine

• DOING THE DEAL
• 1998 Approached by consultants, EPIC, through
  office in Warsaw.
• EPIC represented variety of shareholders
  including oil company.
• Employees owned 10 of the shares.
• CRH insisted on 75 1 share for legal reasons.
• Shareholding facilitated changing of statutes of
  the Company allowing owner to e.g. dismiss the
  management.
• Critical to understand legal system particularly
  in registering share ownership.

9
CRH in Ukraine

• PODILSKY CEMENT 1999
• VOLUMES (000) tns 693
• PRICE (US/ton) 22
• SALES ( m) 15.9
• PBIT/SALES () 0.1
• RONA () 0.2
• DEBT ( m) 4.0
• BARTER () 90
• BARTER NATIONALLY () 45

10
CRH in Ukraine

• PODILSKY CEMENT 2004
• VOLUMES (000) tns 1700
• PRICE (/ton) 30
• SALES ( m) 51
• PBIT/SALES () 10.5
• RONA () 26
• DEBT ( m) 0.5
• BARTER ELIMINATED

11
CRH in Ukraine

• THE FUTURE
• 2005 16 m investment in solid fuel project.
• Ukraine cement consumption 200 kg/capita
• European average 500 kg/capita
• Ireland 1000 kg/capita
• Next stage cement development new dry line
  100 million.
• CRH Ukraine Development Office Kiev June 2005.
• Downstream businesses - concrete products J.V.
• - aggregates
• - asphalt
• - aerated concrete
• - lime