Breedon Group Plc · LSE:BREE
Breedon — H1 2020 Earnings Presentation
19 slides from Breedon's earnings presentation, Jul 29, 2020
Slide 1: Breedon Group Interim Results Presentation
BREEDON GROUP INTERIM RESULTS PRESENTATION 29 July 2020
Slide 2: Agenda
Agenda Group highlights Pat Ward, Group Chief Executive Financial review Rob Wood, Group Finance Director Operational review & outlook Pat Ward Q & A 2 BREEDON INTERIM RESULTS PRESENTATION 29 July 2020
Slide 3: Pat Ward, Group Chief Executive
Pat Ward Group Chief Executive 3 BREEDON INTERIM RESULTS PRESENTATION 29 July 2020
Slide 4: H1 Group highlights
H1 Group highlights Encouraging performance in first 12 weeks of the year COVID-19 lockdown at end of March prompted immediate fall in demand and managed shutdown of most operations Early and decisive action taken to keep colleagues safe and preserve liquidity Site reopenings commenced in ea
Slide 5: Rob Wood, Group Finance Director
Rob Wood Group Finance Director 5 BREEDON INTERIM RESULTS PRESENTATION 29 July 2020
Slide 6: H1 2020 highlights
H1 2020 highlights Revenue Underlying EBIT* Underlying EBIT margin* £335.3m -25% £(0.6)m -101% (0.2)% -11.3ppt H1 2019: £447.4m H1 2019: £49.5m H1 2019: 11.1% Loss before taxation Underlying basic EPS* Net debt £(10.1)m -126% (0.65)p -132% £253.6m H1 2019: profit of £39.5m H1 2019: 2.03p H1 2019: £3
Slide 7: H1 2020 income statement
H1 2020 income statement H1 2019 H1 2020 £ million £ million Variance Revenue 447.4 335.3 -25% Underlying EBITDA 81.1 32.6 -60% Depletion & depreciation (32.4) (33.1) Underlying operating (loss)/profit 48.7 (0.5) -101% Share of associate and joint ventures 0.8 (0.1) Underlying EBIT 49.5 (0.6) -101%
Slide 8: H1 2020 segmental performance
H1 2020 segmental performance 93.4 (37.6) 93.5 75.6 (24.4) 69.2 298.1 447.4 214.9 335.3 Great Britain Ireland Cement Eliminations Group Great Britain Ireland Cement Eliminations Group H1 2019 H1 2020 H1 2019 H1 2020 Underlying Underlying Underlying Underlying EBIT EBIT EBIT EBIT £ million £ million
Slide 9: H1 2020 product volumes
H1 2020 product volumes 2.5 2.5 2.5 Aggregates Asphalt Concrete Cement million tonnes million tonnes million m3 million tonnes 9.9 2.0 2.0 2.0 1.3 8.0 1.5 1.5 1.5 1.5 1.1 1.4 0.1 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.1 0.8 0.3 0.5 0.5 0.5 8.6 6.9 0.9 0.7 1.4 0.9 - - - H1 2019 H1 2020 H1 2019 H1 2020 H1 2019
Slide 10: H1 2020 net debt movement
H1 2020 net debt movement £ million 0 ((211.4) 211.4) 38.4 (5.5) (10.0) (15.6) 32.6 (253.6) 42.2 (290.3) Opening debt EBITDA Working capital Interest Tax Net capital expenditure Other Reported statutory Reported statutory Impact of IFRS 16 on Closing Closing debt excluding debt closing debt closing
Slide 11: Pat Ward, Group Chief Executive
Pat Ward Group Chief Executive 11 BREEDON INTERIM RESULTS PRESENTATION 29 July 2020
Slide 12: H1 market background
H1 market background* UK GDP -2.0% in Q1 2020; April -20.3%, May +1.8% % MPA sales volumes in GB: April & May 0 RoI GDP +1.2% in Q1 2020; April -15/21% -10 GREAT BRITAIN -20 Construction output in Q1: -3% -30 April -44%, May -40% -40 UK construction PMI up from 28.9 in May to 55.3 in June
Slide 13: H1 2020 business reviews
H1 2020 business reviews GREAT BRITAIN Good start to the year in all regions, with England and Wales recovering relatively quickly from lockdown in Q2 Recovery in Scotland more protracted as lockdown measures relaxed more slowly Early supply contracts won for HS2 Loak Farm operational to sup
Slide 14: Acquisition of CEMEX assets
Acquisition of CEMEX assets Completion expected imminently Assets will be held separate until completion of the CMA’s investigation Business will trade as Pinnacle Construction Materials under an independent management team To be headquartered near East Midlands airport with regional offices
Slide 15: 2020 Group outlook: markets
2020 Group outlook % GB construction outlook: 2020-22 30 MARKET – GB 20 10 CPA construction output -25% in 2020, +25% in 2021 0 Sales volumes forecast to decline 20-30% across all products in 2020 -10 -20 Recovery underpinned by increased infrastructure investment -30 2020 2021 2022 CPA Experi
Slide 16: 2020 Group outlook
2020 Group outlook BREEDON Recovery well underway and enquiry levels encouraging Increased demand from major projects, e.g. A9, HS2, N4, Dublin Airport Further self-help to secure maximum benefit from recovery Continuing benefits of geographical diversity CEMEX acquisition due to be comple
Slide 17: The recovery in our markets now appears to be well underway
“ The recovery in our markets now appears to be well underway and we have seen continued improvement into July. The great majority of our sites are now open, including both our cement plants. While near-term uncertainty remains, there is significant pent-up demand to be satisfied in both housing and
Slide 18: Q & A
Q&A 18 BREEDON INTERIM RESULTS PRESENTATION 29 July 2020
Slide 19: Disclaimer
The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in any security and should not be considered as inves