Slide 1: 2013 Interim Results
€. » 2 2013 Interim Results CRH plc
Slide 2: Group Agenda
CRH Group Agenda Results Overview Financial Overview Cost Reductions Full Year Outlook CRH plc, 2013 Interim Results, 20th August 2013 Page 1
Slide 3: 2013 H1 Backdrop
CRH Group 2013 H1 Backdrop H1 outturn in line with AGM guidance Continuing challenges in Europe Americas improving Tough weather conditions vs 2012 Continued focus on cost reduction CRH plc, 2013 Interim Results, 20th August 2013 Page 2
Slide 4: 2013 H1 Overview
CRH Group 2013 H1 Overview Sales €8.0 Bn • Change -3%; like-for-like -6% EBITDA €0.4 Bn • -18% excluding Pension / CO2 gains Margins • Americas ahead; Europe lower Development €0.5 Bn • €0.8 Bn over last 12 months Net Debt €4.2 Bn • €0.4 Bn higher than June 2012 Dividend • Maintained at 18.5c CRH pl
Slide 5: Europe Materials: Tough start; lower Pension / CO2 gains
Europe Materials Tough start; lower Pension / CO2 gains €m % chg H1’13 H1‘12 EBITDA & EBIT Pension / CO2 gains €5m (H1’12 €44m) Sales -13% 993 1,141 EBITDA -54% 59 129 Volume & Price Volume: LFL -14%; Price: LFL -2% Op. Loss -116% (10) 63 Difficult start in Poland & Ukraine EBITDA % 5.9% 11.3% Eff
Slide 6: Europe Products: Poor economic backdrop; continued restructuring
Europe Products Poor economic backdrop; continued restructuring €m % chg H1’13 H1‘12 Sales Moderating rate of sales decline Sales -8% 1,147 1,249 LFL Jan-Apr -13%; May-Jun -3% EBITDA -40% 54 90 Netherlands Adverse Spring weather Op. Profit -91% 3 34 Challenging markets persist EBITDA % 4.7% 7.2% G
Slide 7: Europe Distribution: Difficult environment; sales & margin pressures
Europe Distribution Difficult environment; sales & margin pressures €m % chg H1’13 H1‘12 Sales LFL Jan-Apr -9%; May-Jun -5% Sales -3% 1,837 1,892 EBITDA -31% 63 91 Merchants Widespread weather effect Op. Profit -54% 26 57 Netherlands most impacted by market conditions EBITDA % 3.4% 4.8% DIY Op. Ma
Slide 8: Americas Materials: Operational efficiency impacted by poor H1 weather
Americas Materials Operational efficiency impacted by poor H1 weather €m % chg H1’13 H1‘12 Volumes Infrastructure most impacted by weather Sales -7% 1,710 1,839 Private sector improving EBITDA -27% 52 71 Pricing Overall pricing positive Op. Loss -20% (79) (66) Improved construction margin EBITDA %
Slide 9: Americas Products: Strong May / June sales & profit delivery
Americas Products Strong May / June sales & profit delivery €m % chg H1’13 H1‘12 Precast Improved demand in West Sales +9% 1,562 1,435 Benefited from cost reduction measures taken EBITDA +19% 145 122 APG Margin improvement Op. Profit +35% 88 65 Contributions from acquisitions EBITDA % 9.3% 8.5% Bu
Slide 10: Americas Distribution: Sales and margin advance led by Interior Products
Americas Distribution Sales and margin advance led by Interior Products €m % chg H1’13 H1‘12 Exterior Northeast strong; other regions softer Sales +6% 758 715 Sales/Profits in line with H1’12 EBITDA +20% 24 20 Interior Op. Profit +44% 13 9 Wallboard shipments up nationally Benefits from improving ne
Slide 11: First half recap & recent sales trends
CRH Group First half recap & recent sales trends Like-for-like Sales Trends Tough H1 Materials backdrop; marked improvement Europe Jan/Apr May/June July since end-June Materials -17% -13% -3% Moderating P&D sales declines; Products & Distribution -10% -5% +2% July up; too early to draw conclusions -
Slide 12: Group Agenda
CRH Group Agenda Results Overview Financial Overview Cost Reductions Full Year Outlook CRH plc, 2013 Interim Results, 20th August 2013 Page 11
Slide 13: Components of 2013 Group Performance
Financial Overview Components of 2013 Group Performance €m Sales EBITDA H1 2012 8,271 523 Acquisitions Seasonal impact Translation (84) (5) Acquisitions / Divestments 294 22 Pension / CO2 gains €5m in 2013; €44m in 2012 Restructuring / Impairments - 1 Pension / CO2 gains - (39) Organic Organic (474)
Slide 14: Comparison with 2012; significant one-offs
Financial Overview Comparison with 2012; significant one-offs €m H1’13 H1‘12 €m PBT Operating profit 41 162 H1 2012 102 Pension / CO2 gains (39) Profit on disposals 18 196 Secil / Magnetic disposal (183) Net finance costs (146) (151) Impairment of Uniland 130 Equity accounted entities 16 (105) Organ
Slide 15: Operating cash movements
Financial Overview Operating cash movements €m H1’13 H1’12 Results before tax (71) 102 Depreciation/Amortisation 356 361 Working Capital Profit on disposals (18) (196) Seasonal first half outflow Share of equity accounted results (16) 105 Working capital (668) (616) Capital Expenditure Capital Expen
Slide 16: Net debt
Financial Overview Net debt €m H1’13 H1’12 Increase in net debt Operating cash outflow (1,044) (904) Acquisitions Acquisitions and investments (470) (263) 18 bolt-on transactions Proceeds from disposals 202 688 Share issues 46 45 Disposals 2013: Includes Uniland swap Translation (16) (70) 2012: Seci
Slide 17: Strong and flexible financial position
Financial Overview Strong and flexible financial position Debt Maturity Profile June 2013 € Bn Gross debt (incl derivatives) (5.4) 2.0 Gross cash 1.2 Net debt (4.2) 1.5 1.0 April 2013 – Bond Issue 0.5 €0.75Bn 10-yr Eurobond issue Lowest ever coupon at 3.125% 0.0 Brings H1’13 cash/undrawn to €3.0Bn C
Slide 18: Group Agenda
CRH Group Agenda Results Overview Financial Overview Cost Reductions Full Year Outlook CRH plc, 2013 Interim Results, 20th August 2013 Page 17
Slide 19: Recap from Nov 2012 Capital Markets Day
Cost Reductions Recap from Nov 2012 Capital Markets Day CRH plc, 2013 Interim Results, 20th August 2013 Page 18
Slide 20: Additional cost reductions targeted in Europe
Cost Reductions Additional cost reductions targeted in Europe • Continued weakness in key European markets • Requiring further adjustments to our cost base in Europe • Increasing projected savings in 2012/13 Cost reductions increased by c.€75m in 2012-13 CRH plc, 2013 Interim Results, 20th August 20
Slide 21: Increasing cost savings
Cost Reductions Increasing cost savings €m €150m €166m €125m €185m 200 +€16m +€60m 150 100 50 0 2012 2012 2013 2013 2012F 2012A CMD Actual CMD Forecast Structural Process Procurement Additional reductions vs CMD €16m higher than CMD projections in 2012… … and a further €60m higher in 2013 CRH plc, 2
Slide 22: Cumulative 2012-13 cost reductions
Cost Reductions Cumulative 2012-13 cost reductions Cost reductions by Category Cost reductions by Division Americas P&D c.20% Procurement Americas Europe Materials Materials c.50% Structural c.30% Process Europe P&D c.70% of cost reductions c.75% of cost reductions are permanent are in Europe CRH pl
Slide 23: Summary
Cost Reductions Summary • CRH has an industry leading track record in cost reduction… • …delivering €2.2bn savings to end-2012… and increasing 2013 target to €185m • Process of cost reduction is on-going in response to evolving market demand • We will provide a further update with our full-year resu
Slide 24: Group Agenda
CRH Group Agenda Results Overview Financial Overview Cost Reductions Full Year Outlook CRH plc, 2013 Interim Results, 20th August 2013 Page 23
Slide 25: 2013 Outlook
CRH Group 2013 Outlook • Indicators suggest Eurozone emerging from recession Europe • Moderating rate of overall like-for-like sales decline • Expect challenging trading conditions for H2 • Strengthening US economic growth in recent quarters Americas • Res / Non-Res positive; Infra delivery weather
Slide 26: 2013 Interim Results Supplementary Information
2013 Interim Results Supplementary Information
Slide 27: Components of H1 2013 Group Performance
Appendices Components of H1 2013 Group Performance Finance Equity €m Sales EBITDA EBIT Disposals PBT costs accounted H1 2012 8,271 523 162 196 (151) (105) 102 Translation (84) (5) (1) - - - (1) Acquisitions / Divestments 294 22 8 (183) (2) (2) (179) Restructuring / Impairments - 1 2 - - 130 132 Pens
Slide 28: Equity accounted entities
Appendices Equity accounted entities €m H1’13 H1‘12 (As previously proportionately consolidated) Sales 221 317 EBITDA 25 45 Op. Profit 12 22 Share of JV Profit After Tax 9 13 Share of Associates Profit After Tax 7 12 Associates Impairment - (130) Total share of Equity Accounted Entities 16 (105) CRH
Slide 29: Europe Materials - Performance components
Appendices Europe Materials - Performance components Analysis of change €m % chg H1’13 H1’12 Change Organic Acquisitions Restructuring Pension / CO2 Exchange Sales -13% 993 1,141 (148) (183) +42 - - (7) EBITDA -54% 59 129 (70) (36) +4 +2 (39) (1) Op. Loss -116% (10) 63 (73) (36) - +2 (39) - EBITDA %
Slide 30: Europe Products - Performance components
Appendices Europe Products - Performance components Analysis of change Restructuring/ €m % chg H1’13 H1’12 Change Organic Acquisitions Divestments Exchange Impairments Sales -8% 1,147 1,249 (102) (104) +34 (26) - (6) EBITDA -40% 54 90 (36) (31) +3 (3) (5) - Op. Profit -91% 3 34 (31) (26) +1 (2) (4)
Slide 31: Europe Distribution - Performance components
Appendices Europe Distribution - Performance components Analysis of change €m % chg H1’13 H1’12 Change Organic Acquisitions Divestments Restructuring Exchange Sales -3% 1,837 1,892 (55) (139) +96 - - (12) EBITDA -31% 63 91 (28) (30) +3 - - (1) Op. Profit -54% 26 57 (31) (31) +1 - - (1) EBITDA % 3.
Slide 32: Americas Materials - Performance components
Appendices Americas Materials - Performance components Analysis of change €m % chg H1’13 H1’12 Change Organic Acquisitions Divestments Restructuring Exchange Sales -7% 1,710 1,839 (129) (161) +55 - - (23) EBITDA -27% 52 71 (19) (27) +6 - +4 (2) Op. Loss -20% (79) (66) (13) (20) +3 - +4 - EBITDA %
Slide 33: Americas Products - Performance components
Appendices Americas Products - Performance components Analysis of change €m % chg H1’13 H1’12 Change Organic Acquisitions Divestments Restructuring Exchange Sales +9% 1,562 1,435 +127 +68 +86 - - (27) EBITDA +19% 145 122 +23 +15 +9 - - (1) Op. Profit +35% 88 65 +23 +18 +5 - - - EBITDA % 9.3% 8.5%
Slide 34: Americas Distribution - Performance components
Appendices Americas Distribution - Performance components Analysis of change €m % chg H1’13 H1’12 Change Organic Acquisitions Divestments Restructuring Exchange Sales +6% 758 715 +43 +45 +7 - - (9) EBITDA +20% 24 20 +4 +4 - - - - Op. Profit +44% 13 9 +4 +4 - - - - EBITDA % 3.2% 2.8% Op. Margin %
Slide 35: Changes in accounting standards – effective Jan 2013
Appendices Changes in accounting standards – effective Jan 2013 2012 Revised €m Joint Ventures Pension Reported Unaudited Revenue 18,659 (575) - 18,084 EBITDA 1,640 (77) - 1,563 Op. profit 845 (40) - 805 Equity accounted (112) 28 - (84) Net finance costs (289) 2 (18) (305) PBT 674 (10) (18) 646 EPS
Slide 36: Changes in accounting standards – effective Jan 2013
Appendices Changes in accounting standards – effective Jan 2013 2012 Revised €m Joint Ventures Pension Reported Unaudited Non-current assets 14,168 (76) (4) 14,088 Current assets 7,000 (188) - 6,812 Total assets 21,168 (264) (4) 20,900 Non-current liabilities 6,781 (168) (20) 6,593 Current liabiliti
Slide 37: Analysis by segment
Appendices Analysis by segment Sales (€m) % chg H1’13 H1’12 EBITDA (€m) % chg H1’13 H1’12 Europe Materials -13% 993 1,141 Europe Materials -54% 59 129 Europe Products -8% 1,147 1,249 Europe Products -40% 54 90 Europe Distribution -3% 1,837 1,892 Europe Distribution -31% 63 91 Americas Materials -7%
Slide 38: Analysis by segment
Appendices Analysis by segment Operating Profit (€m) % chg H1’13 H1’12 Profit on Disposal (€m) % chg H1’13 H1’12 Europe Materials -116% (10) 63 Europe Materials n/m 1 140 Europe Products -91% 3 34 Europe Products -84% 7 45 Europe Distribution -54% 26 57 Europe Distribution n/m 1 - Americas Materials
Slide 39: H1 2013 acquisition activity €0.47 Bn
Appendices H1 2013 acquisition activity €0.47 Bn €Bn H1 2013 Europe / Asia 0.24 Americas 0.23 Group 0.47 Acquisitions: €0.47 Bn • 6 Europe deals (3 Materials; 1 Products; 2 Distribution) • 12 Americas deals (7 Materials; 4 Products; 1 Distribution) CRH plc, 2013 Interim Results, 20th August 2013 Pag
Slide 40: Euroconstruct estimates June 2013
Appendices Euroconstruct estimates June 2013 Construction Output 2013 % chg Construction Output 2013 % chg Belgium -0.1% Poland -5.6% Denmark 3.0% Portugal -18.0% Finland -1.2% Spain -23.8% France -3.3% Switzerland 0.5% Germany 1.2% United Kingdom -2.0% Ireland -8.8% Western Europe (EC-15) -2.7% Net
Slide 41: PCA Spring Forecast 2013
Appendices PCA Spring Forecast 2013 Real GDP 2.4% Construction Put-in-place % chg To be updated Construction Put-in-place 6.0% Industrial 6.7% Cement consumption 6.1% Office 6.2% Hotels, motels 14.5% Construction Put-in-place % chg New housing 21.5% Total Non-residential 5.5% Single family 20.3% Hig
Slide 42: Contact Us
CRH plc 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 Website: www.crh.com This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such statemen