CRH PLC · NYSE:CRH
CRH — Davy Equity Conference 2010
24 slides from CRH's conference presentation, Jan 8, 2010
Slide 1: Davy Equity Conference New York
Davy Equity Conference New York 8th January 2010 Myles Lee Chief Executive
Slide 2: Agenda
Agenda 1 2009 Trading Update 2 Cash Generation & Debt Profile 3 2009 Development Update 4 Cost Reduction Update 5 2010 Outlook Davy Equity Conference, 8th January 2010 1
Slide 3: CRH Trading Statement
CRH Trading Statement Expect 2009 Outcome In Line with Nov IMS Guidance Expect full year EBITDA close to €1.8Bn; (2008: €2.665Bn) With Profit Before Tax of approximately €0.75Bn; (2008: €1.628Bn) After €0.2Bn cost reduction implementation costs And before asset impairment charges PBT forecast r
Slide 4: 2009 Full Year Europe
2009 Full Year Europe Expect c40% decline on 2008 EBITDA Indications Materials Products Distribution Total c45 % c30 % c25 % c40 % 2009 Change decrease decrease decrease decrease 2008 Actual €806m €392m €258m €1,456m Materials ¾c€70m of decline attributable to translation impact of weaker PLN/UAH
Slide 5: 2009 Full Year Americas
2009 Full Year Americas Expect c30% US$ EBITDA decline; down c25% in euro Indications Materials Products Distribution Total Low teen % c55 % c70 % c30 % 2009 Change decrease decrease decrease decrease 2008 Actual $1,065m $543m $170m $1,778m Materials ¾Margins ahead with strong cost/commercial deliv
Slide 6: Agenda
Agenda 1 2009 Trading Update 2 Cash Generation & Debt Profile 3 2009 Development Update 4 Cost Reduction Update 5 2010 Outlook Davy Equity Conference, 8th January 2010 5
Slide 7: Operating Cash Flow
Operating Cash Flow Expect Full Year Operating Cash Inflow of c€1Bn Estd Actual € Bn 2009 2008 Profit before tax 0.7 1.6 Depreciation/Amortisation 0.8 0.8 Working capital 0.5 (0.1) Tax Paid (0.1) (0.3) Dividends (gross) (0.4) (0.4) Capital expenditure (0.5) (1.0) Other --- --- Operating cash inflow
Slide 8: Net Debt
Net Debt Full Year Net Debt reduction of €2Bn+ to under €4Bn Estd Actual € Bn 2009 2008 Operating cash inflow 1.0 0.6 Acquisitions and investments (0.4) (1.1) Disposals 0.1 0.2 Share issues (incl. scrip div.) 1.4 --- Share purchases --- (0.4) Translation 0.1 (0.2) Debt decrease (increase) 2.2 (0.9)
Slide 9: Excellent Debt Maturity Profile
Excellent Debt Maturity Profile Cash reserves/Undrawn facilities c€3bn December 2009 Estimates – Including JVs Gross Debt by Maturity Undrawn € Bn (incl. Derivatives) Committed Facilities Overdrafts 0.1 - 2010 0.2 0.2 2011 0.6 0.4 2012 0.9 0.8 2013 0.5 0.1 2014 1.0 0.1 2015 0.3 0.0 2016+ 1.7 0.0 Tot
Slide 10: Agenda
Agenda 1 2009 Trading Update 2 Cash Generation & Debt Profile 3 2009 Development Update 4 Cost Reduction Update 5 2010 Outlook Davy Equity Conference, 8th January 2010 9
Slide 11: 2009 Development Activity
2009 Development Activity c€0.45Bn Acquisition Spend €Bn H1 H2 Full Year Europe 0.02 0.01 0.03 Americas 0.04 0.15 0.19 Asia 0.22 0.01 0.23 Total 0.28 0.17 0.45 Highlights … H1: 26% investment in Yatai Cement in northeastern China H2: 4 important materials bolt-ons in Missouri (Nov), Texas & Utah (
Slide 12: Americas Materials Development Activity
Americas Materials Development Activity 7 Bolt-ons with 380mts permitted Aggs reserves Lafarge assets: • Aggs & Asphalt assets • Central/Eastern Missouri • 136mts Aggs reserves • St. Louis market entry Hilty: • Integrated Aggs/Asphalt & Construction; Kansas City • 105mts Aggs reserves • Strong fit w
Slide 13: US Infrastructure Investment
US Infrastructure Investment Current Sources of Funding Ongoing sources of funding for US Infra c.$80Bn p.a. 45:55 from Fed (SAFETEA-LU) and State/Local budgets SAFETEA-LU … expired 30 Sep 2009 Continuing Resolution to 28 Feb 2010 ARRA introduced 2009 to support job creation ($27.5Bn over 3 - 4
Slide 14: US Infrastructure Investment: ARRA
US Infrastructure Investment American Recovery & Reinvestment Act (ARRA) $27.5Bn for highways and bridges Expected profile of spend: ¾2009: $ 5.5Bn ¾2010: $ 11.8Bn ¾2011: $ 8.1Bn ¾2012: $ 2.0Bn New highway contract awards, slow H1, accelerated H2 driven by ARRA Highway Highway and and Bridge Brid
Slide 15: ARRA Funds Obligated and Paid Out
ARRA Funds Obligated and Paid Out (30 Nov 2009) 3.0 Left to Obligate Obligated 25.0 Outlay 2.5 20.0 $5.0Bn 15.0 $Bn 10.0 $13.5Bn 2.0 5.0 $4.2Bn 0.0 1.5 CRH States c.20% Paid-out 1.0 0.5 0.0 CA WI AK ND HI DC TX FL NY PA OH IL GA MI NC VA IN NJ MO TN AZ AL MNWA SC OKMA LA MD KY CO IA MS AR KS OR CT N
Slide 16: US Infrastructure Investment
US Infrastructure Investment House proposal on future funding measures Surface Transportation Extension Act (STEA) of 2009 ¾Extends highway program through 30 Sep 2010 fully funded - $41.5Bn ¾Resolution to impending HTF shortfall for 2010 ¾20% state match waived Jobs for Main Street Act, 2010 ¾In
Slide 17: Agenda
Agenda 1 2009 Trading Update 2 Cash Generation & Debt Profile 3 2009 Development Update 4 Cost Reduction Update 5 2010 Outlook Davy Equity Conference, 8th January 2010 16
Slide 18: Cost Reduction Action continues
Cost Reduction Action continues … Cumulative annualised 2007 - 2010 Announced Jan-09 Gross savings of: €895m Revised Jul-09 Gross savings of: €1,450m Revised Jan-10 Gross savings of: €1,650m Total Total savings savings … … increased increased by by €€200m 200m on on the the €€1,450m 1,450m savings s
Slide 19: Annualised Cost Savings now €1,650m
Annualised Cost Savings now €1,650m P&L Impact Initiatives (€m) ‘07 ‘08 ‘09 ‘10 Annualised 2007 50 50 2008 447 398 845 2009 450 145 595 2010 160 160 Gross savings 50 447 848 305 1,650 Cost to implement - 62 200 45 Net savings 50 385 648 260 Progressive Progressive activity activity across across all
Slide 20: Permanent Cost Savings … c40%
Permanent Cost Savings … c40% Permanent Permanent Savings Savings Delivered Delivered across across c40% c40% 55 Key Key Areas Areas Energy Optimisation c11% Permanent Administration Savings Procurement c34% 40% & Other c22% Volume-related Savings 60% Production Operational Sales Efficiencies Distri
Slide 21: Permanent Cost Savings … c€660m
Permanent Cost Savings … c€660m 2007-10 Target Reconfiguring Org Structures ADMINISTRATION Regional back office consolidation €225m Review of all spend items PRODUCTION, Challenging our Fixed Cost Base SALES & €75m Closure of production facilities DISTRIBUTION Consolidation of sales regions Redu
Slide 22: Agenda
Agenda 1 2009 Trading Update 2 Cash Generation & Debt Profile 3 2009 Development Update 4 Cost Reduction Update 5 2010 Outlook Davy Equity Conference, 8th January 2010 21
Slide 23: 2010 Outlook
2010 Outlook Economic & financial market newsflow more positive over recent months Nevertheless trading conditions remain difficult With timing of any sustained construction demand pick-up unclear CRH focus on cost reduction & operational initiatives will benefit 2010 With a strong balance shee
Slide 24: Contact Us
Contact Us CRH plc Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone:+ 353 1 404 1000 Fax: + 353 1 404 1007 Email: ir@crh.com or look up our Website - www.crh.com This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such s