Slide 1: Trading Update November 2017
Trading Update November 2017
Slide 2: Key Messages
Key Messages • 9M trading … continuation of H1 trends despite adverse US weather • €1.34bn of YTD acquisition spend … 27 transactions • Expanding US cement platform … further $4.25bn of acquisitions • FY EBITDA expected to be in excess of €3.2bn CRH plc, Trading Update 1
Slide 3: Trading Highlights
Slide 4: Trading Performance
Trading Performance LFL Sales EBITDA • Europe – positive momentum YoY change H1 9M H1 9M • Americas – progress despite adverse Europe +3% +2% +2% +3% weather conditions Americas +1% +2% +6% +4% • Asia – challenging market backdrop Asia -8% -9% -39% -45% • Group – continuation of H1 trends Group +1%
Slide 5: Europe Trading
Europe Trading LFL Sales EBITDA • Market recovery evident in France, YoY change H1 9M H1 9M Netherlands, Poland Heavyside +4% +3% +2% +4% • UK & Finland broadly stable Lightside +3% +3% - - • Good demand in key Lightside markets Distribution +1% +2% +6% -1% • Distribution impacted by challenging tra
Slide 6: Americas Trading
Americas Trading LFL Sales EBITDA • Solid fundamentals … YoY change H1 9M H1 9M good underlying demand Materials +1% +2% +3% +2% • 9M volumes impacted by weather … pricing environment remains favourable Products - +1% +7% +6% • Amid inflationary cost pressures … Distribution +1% +3% +10% +7% good pr
Slide 7: Asia Trading
Asia Trading LFL Sales EBITDA • Philippines – Q3 cement volumes ahead … YoY change H1 9M H1 9M pricing remains challenging Philippines -8% -9% -39% -45% • India – cement volumes & prices ahead … solid demand backdrop • China – positive pricing environment … some volume weakness CRH plc, Trading Upda
Slide 8: Developing US Materials
Developing US Materials
Slide 9: Developing US Materials
Developing US Materials • Recent deals of $4.25bn … US cement & aggregates • Average 10x 2017F EBITDA … 8x post-synergies • Increased investment in higher growth regions … Texas, Northwest & Florida • Geographic infill … strengthened footprint • Attractive platforms for further downstream developmen
Slide 10: Ash Grove Cement Overview
Ash Grove Cement Overview 2 Regional Platforms 2017 Estimates Northwest $ 1.4bn $0.35bn 8.3mt ~30% of sales Sales EBITDA* Cement Midwest & Texas ~70% of sales 2.7m yd 3 13mt 26 Readymixed Aggregates Cement concrete terminals Sales by Product Cement 66% RMC 20% Aggs 8% 6%1 EBITDA by Product Cement 83
Slide 11: Operational Rationale
Operational Rationale Leveraging global Network expertise optimisation Best practice initiatives adding Across all product groups value to acquired businesses Vertical integration Self-supply benefits opportunities Downstream expansion … Aggs & Enhanced purchasing & self-supply Cement volume pull-th
Slide 12: Midwest & Texas – Geographic Infill … & Growth
Midwest & Texas – Geographic Infill … & Growth • #1 in cement … strategic locations & extensive NE IA rail network KS • Strong overlap with existing footprint … MO expanding aggregates business by ~40% OK • Fully integrated across all product lines … AR network optimisation benefits LA • Now #1 buil
Slide 13: Northwest – Strengthening in Key Growth Markets
Northwest – Strengthening in Key Growth Markets WA • #1 market position OR MT • Increasing exposure to high growth markets ID • Population to increase 30% by 2040 … 1.5x faster than national average NV UT • Significant self-supply & downstream development opportunities CRH Cement plant Aggregates RM
Slide 14: Currently Identified Synergies
Currently Identified Synergies $ 80m • $80m run-rate by year 3 • Procurement – global purchasing & supply $ 50m arrangements • Operational – alternative fuels; operating $ 20m efficiencies; vertical integration benefits • Structural – integrating back-office functions; regional centres of administra
Slide 15: Ash Grove Summary
Ash Grove Summary • 2 regional platforms … strong market positions Attractive markets • Growth & geographic infill opportunities • Downstream development potential • Significant overlap with existing footprint Operational fit • Vertical integration & self-supply opportunities • Network optimisation
Slide 16: Florida Cement Acquisition
Florida Cement Acquisition • $0.75bn acquisition • 1mt cement … 1.3mt Aggs … 1.2m yd3 RMC … substantial concrete products operations • Expanding in central & northern Florida • 70+ years of aggregates reserves • Now #1 building materials company in Florida … one of the fastest growing economies in t
Slide 17: Outlook
| hey MM) i Tre ‘il i Outlook
Slide 18: FY 2017 EBITDA Expectations
FY 2017 EBITDA Expectations LFL % Europe Americas Asia Group Chg H1 +2% +6% -39% +2% 9M +3% +4% -45% +2% FY 2017E <€1.2bn ~€2bn <€0.1bn >€3.2bn CRH plc, Trading Update 17
Slide 19: Appendices
Slide 20: Cement Volumes & Prices
Cement Volumes & Prices Volume Price (LC) Volume Price (LC) H1 9M H1 9M H1 9M H1 9M Finland +14% +14% -2% -2% Slovakia +8% +6% -1% - France +11% +9% -1% - Spain +20% +23% +5% +4% Germany -4% -4% - - Switzerland -13% -8% -1% -2% Hungary +10% +6% +4% +3% Ukraine -10% -7% +32% +27% Ireland +13% +8% -6%
Slide 21: Americas Materials Volumes & Prices
Americas Materials Volumes & Prices Volume Price H1 9M H1 9M Total LFL Total LFL Total LFL Total LFL Aggregates +2% -3% +5% -2% +5% +5% +5% +5% Asphalt +3% +1% +5% +2% +1% +1% +1% +2% RMC -3% -2% - +2% +3% +3% +2% +3% CRH plc, Trading Update 20
Slide 22: Disclaimer
Disclaimer In order to utilise the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, CRH public limited company (the “Company”), and its subsidiaries (collectively, “CRH” or the “Group”) is providing the following cautionary statement. This document cont
Slide 23: Contact Information
Contact Information CRH plc Investor Relations Stonemason’s Way Rathfarnham Dublin 16 D16 KH51 Ireland Telephone: +353 1 404 1000 Email: ir@crh.com Website: www.crh.com The inclusion of CRH public limited company in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names