Crh Plc · NYSE:CRH
Crh — Investor Presentation (September 2023)
49 slides from Crh's investor presentation, September 2023
Slide 1: The Leader in Building Materials Solutions
The Leader in Building Materials Solutions September 2023 Investor Presentation 0
Slide 2: Today's Agenda
Today’s Agenda Our Business Differentiated Strategy Geographic Positioning Strong Track Record of Financial Delivery Well Positioned for Future Growth What You Should Expect From CRH Investor Presentation 1
Slide 3: The Leader in Building Materials Solutions
The Leader in Building Materials Solutions 2022 Key Financials 5-year CAGR Industry-leading Total Shareholder Return 15% Compound annual Sales $33bn EBITDA Cashflow $4.4bn Returns Sales +8% EBITDA Cashflow +12% EPS TSR since 1970 $5.6bn 13.3% +13% +16% EBITDA End-Markets ~$40bn 76k 25% 25% 40% N. Am
Slide 4: Our Business
Our Business Investor Presentation 3
Slide 5: Transforming Essential Materials into Value-Added Solutions
Transforming Essential Materials into Value-Added Solutions Aggregates Cement Essential Materials Road Solutions Utility Infrastructure Outdoor Living Investor Presentation 4
Slide 6: #1 in Essential Materials
#1 in Essential Materials • Leading provider of aggregates & cement • Finite, valuable & difficult to replace … #1 aggregates producer in North America … regional #1 in Europe • High margin & heavily integrated into downstream solutions businesses • Unique network of assets and expertise … a trusted
Slide 7: #1 in Road Solutions
#1 in Road Solutions • Largest roadbuilder in publicly funded & resilient infrastructure markets with significant investment needs • Bespoke solution for every project with capability to adapt materials, products & services • Full-service, end-to-end offering across the project lifecycle • Deliverin
Slide 8: #1 in Utility Infrastructure
#1 in Utility Infrastructure • Engineered systems to collect, protect & connect vital utility infrastructure (water, communications, energy) • Highly specified & innovative solutions for complex construction projects • Value-added products & services – design, specification, manufacture, install & m
Slide 9: #1 in Outdoor Living
#1 in Outdoor Living • ‘Owning the backyard’ with innovative & bespoke products • Transforming essential materials into value-added solutions • Full service customer offering – materials, products & supply- chain, digital design services, technology & logistics • Strong growth track record with unma
Slide 10: Differentiated Strategy
Differentiated Strategy Investor Presentation 9
Slide 11: A Customer-Centric Approach
A Customer-Centric Approach Leveraging our scale & expertise Uniquely integrating materials, Materials science products & services across the Design concepts construction value chain Technical expertise Manufacturing capabilities Developing new technologies Investing in Innovation to improve
Slide 12: A Differentiated Strategy
A Differentiated Strategy Creating value for customers … maximizing profits, returns & cash for shareholders • Fully integrated & interconnected businesses • More resilient through the cycle … maximizing growth, profitability & asset utilization … more agile, more flexible, less volatile • Significa
Slide 13: Vertical Integration in Action
Vertical Integration in Action Creating value for customers & shareholders Summary Financial Profile Materials only (“Pure-play”) Vs. CRH Americas integrated offering EBITDA Margin ~25% EBITDA Margin ~20% … lower margin … but Cash Conversion ~70% Cash Conversion ~80% higher cash … and greater Return
Slide 14: Geographic Positioning
Geographic Positioning Investor Presentation 13
Slide 15: The Largest Building Materials Company in North America
The Largest Building Materials Company in North America ~75% of Group EBITDA Sales by region 2022 Market Positions #1 Mineral Reserves in North America (billion US tons at year-end 2022) #1 Aggregates Production Northeast #3 Cement Production West 19 Uc.25% c.30% OH #1 Utility Infrastructure T 17 #1
Slide 16: The Largest Building Materials Company in Europe
The Largest Building Materials Company in Europe ~25% of Group EBITDA CRH footprint • #1 in Western Europe (~55% of EBITDA) … resilient RMI demand … global center for construction innovation • #1 in Central & Eastern Europe (~45% of EBITDA) … high growth markets … emerging demand for end-to-end solu
Slide 17: Leveraging the Benefits of our Scale & Agility
Leveraging the Benefits of our Scale & Agility Innovation & Sustainability North America Procurement & Synergy Europe ~75% of EBITDA ~25% of EBITDA A large and fast-growing Talent & The most regulated construction market … Expertise construction market … • Scaling innovations • Exacting specificatio
Slide 18: Scale & Agility in Action
Scale & Agility in Action Leveraging capabilities, talent, and expertise from across our markets Ash Grove Acquisition (2018) Significant growth & value creation • Successful integration with existing CRH network since acquisition • Significant synergy delivery … process, procurement, structural … m
Slide 19: Strong Track Record of Financial Delivery
Strong Track Record of Financial Delivery Investor Presentation 18
Slide 20: Strong Delivery Through the Cycle
Strong Delivery Through the Cycle Sales EBITDA EBITDA Margin +37% +187% +900bps $32.7bn $5.6bn 17.2% $23.9bn 8.2% $2.0bn EPS Operating Cash Returns +319% +203% $4.4bn +750bps $3.50 13.3% 5.8% $1.5bn $0.84 Investor Presentation 19
Slide 21: Consistent Outperformance vs. Sector Peers
Consistent Outperformance vs. Sector Peers EBITDA Growth EBITDA Margin (% Change 2017 - 2022) (2017 - 2022) +62% +550 +49% bps +33% -50bps -90bps -70bps +11% Global Global Peers US Peers Peer Avg. CRH US Peers Peer Avg. CRH Peers Operating Cash Returns (% Change 2017 - 2022) (2017 - 2022) +78% +260
Slide 22: Consistent Outperformance vs. Sector Peers
Consistent Outperformance vs. Sector Peers EBITDA Growth EBITDA Margin Leading positions in attractive, 9 consecutive years of margin high-growth markets improvement Differentiated strategy delivering Relentless focus on continuous business consistent outperformance improvement Unique mode
Slide 23: Efficient & Disciplined Capital Allocation
Efficient & Disciplined Capital Allocation $12bn $8bn Growth Investments Cash Returns $4bn Dividends Expansionary Capex $10bn Progressive Dividend M&A $20bn+ Expanding capacity in high growth markets 50+ years of uninterrupted dividend delivery Last 5 years Low risk, high returning investments
Slide 24: Well Positioned for Future Growth
Well Positioned for Future Growth Investor Presentation 23
Slide 25: Growth Pillars
Growth Pillars Organic Inorganic Leading market positions … #1 beneficiary 1,200+ acquisitions in CRH history of a golden age for construction Proven track record of value creation Unprecedented investment in critical … delivering two-thirds of historical growth infrastructure & re-industria
Slide 26: US Infrastructure
US Infrastructure … ~40% Americas sales • $1.2tn IIJA – the most transformative public investment program since the 1930s • Underpinning 5+ years of robust infrastructure demand • Road & highway funding +50% • Significant focus on water, energy & technology … $200bn+ • Uniquely positioned … full-ser
Slide 27: US Non-Residential
US Non-Residential … ~30% Americas sales 100+ major projects across the US … supporting future investment & job creation • Onshoring activity to drive demand to 2030 & beyond • $200bn+ projects announced by world’s major corporations … bringing critical manufacturing back to the US … >2.5x historica
Slide 28: US Residential
US Residential … ~30% Americas sales • Recent weakness driven by affordability challenges ~5m US … rising mortgage rates & home prices housing deficit • Long-term demand underpinned Record home equity levels • Structural under-build over the last decade Only 3 months of housing supply • Aging housin
Slide 29: Europe: the global center for construction innovation
Europe … the global center for construction innovation $200bn+ high-tech manufacturing projects & significant funding for critical infrastructure • The most regulated & technically advanced construction market in the world • Driving innovation & advancing sustainability • Significant benefits of sca
Slide 30: Proven Acquisition Growth Strategy
Proven Acquisition Growth Strategy Uniquely Positioned for Growth CRH Framework Extensive industry • Decades of experience and M&A expertise … 1,200+ bolt-on acquisitions since 1970 Discipline Market Fit Robust M&A • Significant market fragmentation 8x EBITDA pipeline Attractive growth since 2014 ma
Slide 31: Accelerating Growth through Innovation & Agility
Accelerating Growth through Innovation & Agility • Increasing demand for a higher performing built environment … solving complex customer problems • Differentiated strategy … leveraging benefits of scale, knowledge & agility … delivering superior value & opportunities for growth • Leading the indust
Slide 32: Sustainability in Action
Sustainability in Action Deeply embedded in all aspects of our business CO2 Circularity Decarbonization Innovation • 42mt recycled materials • Targeting 30% reduction in • Uniquely integrating materials, #1 recycler – of any material – in absolute carbon emissions by 2030 products & services across
Slide 33: What You Should Expect From CRH
What You Should Expect From CRH Investor Presentation 32
Slide 34: Organic Growth Drivers
Organic Growth Drivers Infrastructure Residential Non-Residential Near-term activity Momentum building End-market Robust demand to remain subdued … increased demand underpinned by ... fundamentals onshoring activity US federal, state supportive of underpinned by & EU funding robust long-term signifi
Slide 35: What You Should Expect From CRH
What You Should Expect From CRH A double-digit growth company • Leading positions in structurally attractive markets Mid to high-single digit Sales growth • Value-focused bolt-on acquisitions growth p.a. • Innovation driving new opportunities • ~25% operating leverage Double-digit EBITDA growth • Ma
Slide 36: 2023 Outlook
2023 Outlook EBITDA EBITDA Margin Operating Cash Net Debt / EBITDA ~$6.2bn ~$5bn 1.1x – 1.3x 2022: $5.6bn 10th consecutive year 2022: $4.4bn 2022: 0.9x … another record year for CRH … Investor Presentation 35
Slide 37: Why Invest
Why Invest Industry-leading performance & growth Leading Market Industry-leading Best-In-Class Strongest 1 Positions 2 Growth 3 Operators 4 Balance Sheet #1 in the US & Europe Industry-leading profits, in our History the fastest growing & most Agile & Innovative margins, returns & cash attract
Slide 38: Appendices
Appendices Investor Presentation 37
Slide 39: Solutions in Action
Solutions in Action • Large, complex infrastructure project; 16-miles, 4-lanes • End-to-end offering; design, manufacture, install, maintain, recycle • Integrating base materials, structural bridge elements, water management & utility infrastructure solutions Value creation for the customer … higher
Slide 40: Solutions in Action
Solutions in Action • Custom-built stormwater management system for LAX airport • Bespoke solution to capture, clean & infiltrate 45,000ft3 of water • Highly specified project with numerous stakeholders Value creation for the customer … higher profits, returns & cash for CRH Los Angeles, California,
Slide 41: Solutions in Action
Solutions in Action • Preferred partner on Europe’s largest infrastructure project • Providing materials, products, engineering & technical expertise to meet demanding project specifications • Leveraging Group-wide experience & solutions capabilities Value creation for the customer … higher profits,
Slide 42: Solutions in Action
Solutions in Action LAX Airport America’s biggest asphalt I-69 Freeway Los Angeles maker faces a ‘Golden Age’ Michigan Play Play Play Customer CNBC Customer Video Video Video Custom-built stormwater CNBC profile of CRH … Combined 4 projects management system Inside America’s largest into a single en
Slide 43: Organic Growth Drivers
Organic Growth Drivers Americas (2022) Europe (2022) Materials Solutions Building Solutions Materials Solutions Building Solutions $14.3bn Sales (5YR CAGR +10%) $6.2bn Sales (5YR CAGR +14%) $9.3bn Sales (5YR CAGR +5%) $2.9bn Sales (5YR CAGR -2%) $2.7bn EBITDA (5YR CAGR +14%) $1.3bn EBITD
Slide 44: Summary Financials
Summary Financials Americas Europe FY 2022 Sales EBITDA Sales EBITDA Materials Solutions 14,324 2,748 9,349 1,246 Essential Materials 4,160 4,625 Road Solutions 10,164 4,724 Building Solutions 6,188 1,255 2,862 366 Building & Infrastructure Solutions 2,379 2,252 Outdoor Living Solutions 3,809 610 Su
Slide 45: Strongest Balance Sheet in Group History
Strongest Balance Sheet in Group History Financial discipline through Balanced maturity profile Strong credit ratings the cycle 2.6 Agency Rating Outlook 1.7x 3.0x Net Debt / EBITDA 10yr avg. S&P BBB+ Stable 2.1x 2.0x 1.6 1.5 1.4 1.8x $bn 1.7x 1.6x 1.3 1.5x Moody’s Baa1 Stable 1.3x 1.2x 0.8 0.8 0.8
Slide 46: Market Leading Brands
Market Leading Brands Essential Materials Road Solutions Building & Infra Outdoor Living Solutions Solutions Investor Presentation 45
Slide 47: The Leader in Sustainable Construction
The Leader in Sustainable Construction Deeply embedded in all aspects of our business #1 The largest recycler 42mt Recycled materials in ‘22 36% Alternative fuels usage AAA MSCI ESG rating 30% CO2 reduction target by in North America – double since 2014 – leading the industry #1 in the sector 2030 (
Slide 48: Disclaimer / Forward-Looking Statements
Disclaimer / Forward-Looking Statements 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
Slide 49: CRH plc Investor Relations
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 Investor Presentation 48