Keller Group Plc · LSE:KLR
Keller — Investor Day (October 2012)
20 slides from Keller's investor day presentation, Oct 16, 2012
Slide 1: Keller Group plc Capital Markets Day - Keller North America
Keller Group plc Capital Markets Day 16 October 2012 Keller North America
Slide 2: Contents
Contents • Overview of Keller North America • Hayward Baker: A day in the life… • Market conditions and outlook • Major opportunities and challenges • Summary 1
Slide 3: Keller North America - Overview
Keller North America - Overview • The US Market Leader in Geotechnical Construction – 2011 foundation sales of $638m – ENR ranks Keller as 3.5x larger than our closest competitor although in a highly fragmented industry – The most complete set of product offerings of any contractor in the US market
Slide 4: Keller North America – Foundation Business Overview
Keller North America – Foundation Business Overview The largest of our US foundation businesses with national reach focused on ground improvement, grouting and earth retention markets Our “heavy” drilled shaft business focused on larger, more technically challenging national drilled shaft projects (
Slide 5: The US market leader in Post Tension Products
Keller’s market leading supplier of post – tension materials to the construction Industry • The US market leader in Post Tension Products – 2011 sales of $116m – Residential Slab-on-Ground (SOG) PT Market • PT SOG concentrated in the Sunbelt including Texas, Arizona and California – High Rise Reside
Slide 6: Keller North America – Evolution of the Business
Keller North America – Evolution of the Business Keller’s Organic Start in Florida Hayward Baker Woodbine Jaques Co. VFS Atlanta (NCC) Denver Grouting Hayward TCDI Baker FSI CATOH G. Donaldson Craig Olden, Inc. Nilex Construction Anderson Drilling Case Foundation Company CASE Smith Drilling/Case Atl
Slide 7: US Geographic Coverage
US Geographic Coverage MAINE WASHINGTON NORTH VERMONT MONTANA DAKOTA NEW HAMPSHIRE MINNESOTA OREGON WISCONSIN MASSACHUSETTS IDAHO NEW YORK SOUTH RHODE ISLAND DAKOTA MICHIGAN CONNECTICUT WYOMING PENNSYLVANIA NEW JERSEY IOWA NEBRASKA OHIO WASHINGTON D.C. DELAWARE NEVADA ILLINOIS INDIANA MARYLAND WEST
Slide 8: Keller North America – Competitive advantages (the best of being small)
Keller North America – Competitive advantages • The only truly “national” US geotechnical contractor competing on a local/ regional basis – Keller leverages the best of being big with the best of being small – The best of being small • 50 regional offices allow Keller to be responsive and competitiv
Slide 9: Keller North America – Competitive advantages (the best of being big)
Keller North America – Competitive advantages • The only truly “national” US geotechnical contractor competing on a local/ regional basis – Keller leverages the best of being big with the best of being small – The best of being big • Ability to team up across divisional and company lines to tackle b
Slide 10: Video - Hayward Baker: a day in the life
Video - Hayward Baker: a day in the life …. Click to play video - (not available offline). 9
Slide 11: Summary: Market Outlook
Summary: Market Outlook • The broad US economic outlook – The good news: – Housing prices have rebounded 2% over last 12 months – Net worth to disposable income slowly recovering from the trough in early 2009 – Consumer Confidence Index (The Conference Board) improved in September; “despite continui
Slide 12: US Non-residential Construction Market
US Non-residential Construction Market $bn US Construction Put-in-Place Total US non-residential 750 construction market up 8% YTD Aug 2011 to Aug 2012 with 700 increases across most categories 650 • Power and related construction remains strong; up 31% 600 • Manufacturing up 26% 550 • Highway and S
Slide 13: North America Revenue by End Market
North America Revenue by End Market H1 2012 FY 2008 Total revenue $427m Total revenue $990m • Relative movements largely reflect US construction spend 23% 22% 32% • Keller has the flexibility to 41% move where the money is 11% being spent 24% 22% • Keller also enjoys a 25% healthy mix of remedial an
Slide 14: North America: Suncoast
North America: Suncoast US Housing Starts (000s) 800 • US housing starts appear to have begun slow recovery 700 − at or above 700k for last 10 months • Overhang of foreclosed properties now less of an 600 issue 500 • New homes inventory at an all-time low 400 • Mortgage rates at all-time lows 300 •
Slide 15: Summary: Market Outlook
Summary: Market Outlook – Non-Residential Construction up 8% year on year – FMI Non-Residential Construction Survey: – Backlogs up but participants very guarded about prospects for the coming year – Expectation of more bankruptcies as weaker firms are weeded out to the benefit of stronger firms – At
Slide 16: Opportunities: Transmission Lines
Opportunities: Transmission Lines US Transmission Line Expansion • Significant expenditure expected to extend over circa 5 years • National line contractors with the need for extensive local resources to install their foundations matches well with Keller’s profile • 2011 Sales circa $10m • 2012 Sale
Slide 17: Opportunities: Canada Expansion
Opportunities: Canada Expansion The Canadian Market • Keller’s foundation businesses have gained significant traction in recent years • By following our US customers to their Canadian projects • Kinder Morgan • Suncor • By teaming with Canadian specialists to offer more sophisticated solutions • Geo
Slide 18: Opportunities: Small Contracts
Opportunities: Small Contracts Florida Residential Sinkhole Repair Market • Hayward Baker re-levels and prevents further settlement to houses affected by sinkhole activity in central Florida • Sinkhole market strategy includes: • Uniformed “single mission” field crew • A dedicated sales team which e
Slide 19: Keller North America: Summary
Keller North America: Summary • Keller is the market leader in geotechnical construction – 3.5x larger than our closest competitor – Only truly national player • Suncoast well positioned to benefit from a recovery in the US residential market • US construction markets generally appear to be recoveri
Slide 20: Slide 20