Crh Plc · NYSE:CRH
Crh — H1 2015 Earnings Presentation
34 slides from Crh's earnings presentation, 2015
Slide 1: CRH plc Interim Results 2015
CRH plc Interim Results 2015
Slide 2: Four key areas of focus
Interim Results 2015 Four key areas of focus Margins and Portfolio returns management Delivering strong Re-allocating performance capital into from continuing value-creating operations opportunities Financial Integration discipline Maximising Restoring the potential debt metrics of recent to normali
Slide 3: Delivering strong performance
Interim Results 2015 Delivering strong performance Continuing operations* Strong earnings delivery Constant Disciplined cost and commercial management Currency Sales Positive currency impact +17% +3% Interim dividend maintained EBITDA +29% +14% Margin +60bps +60bps 2 * Continuing operations exclude
Slide 4: Americas
Interim Results 2015 Americas #1 in North America Integrated building materials business National footprint Balanced across all sectors Continued market momentum Res/Non-Res advancing steadily Infrastructure broadly stable 3
Slide 5: Americas – Trading performance
Interim Results 2015 Americas – Trading performance H1 2015 – continuing operations* Materials Products Distribution Strong H1 performance Sales +33% +32% +30% +32% Healthy volume gains Disciplined pricing and cost control EBITDA +76% +51% +36% +57% Delivering 110bps margin expansion Favourable curr
Slide 6: Europe
Interim Results 2015 Europe Regional leadership positions Vertically integrated heavyside businesses Scalable lightside & distribution platforms Balanced by geography and end-use Mixed economic recovery West – overall stable; some modest recovery Central/East – continued steady growth 5
Slide 7: Europe – Trading performance
Interim Results 2015 Europe – Trading performance H1 2015 – continuing operations* Heavyside Lightside Distribution Satisfactory H1 Sales +1% +3% +5% +3% Volumes broadly stable Pricing remains subdued EBITDA +2% +4% +6% +4% Cost management a key focus Delivering through balance Margin 6 * Continuing
Slide 8: Ahead in all divisions
Interim Results 2015 Ahead in all divisions Continuing operations* Sales EBITDA Margin Americas Materials Americas Products Americas Distribution Europe Heavyside Europe Lightside Europe Distribution Group … continued satisfactory progress 7 * Continuing operations exclude the impact of divested ent
Slide 9: Components of financial performance
Interim Results 2015 Components of financial performance Sales EBITDA €m €m H1 2014 8,324 505 Organic 248 69 Good organic delivery Acquisitions/Divestments (244) (34) Divestments primarily UK/US clay One-off items - (44) One-offs include provision for Swiss fine €32m FX translation 1,042 59 Favourab
Slide 10: Operating cash movements
Interim Results 2015 Operating cash movements H1 2014 H1 2015 €m €m EBITDA 505 555 Capital expenditure (213) (338) Investing in growth, mainly US Working Capital (579) (597) Strong working capital control Other, mainly interest, tax (153) (233) €38m outflow for early bond redemption Cash flow from o
Slide 11: Re-allocating capital into value-creating opportunities
Interim Results 2015 Re-allocating capital into value-creating opportunities Over half-way through €1.5-2bn divestment programme 2 major transactions in 2015 – both earnings accretive in year 1 Active portfolio management embedded at CRH … right markets, right companies, right time 10
Slide 12: Acquisition of LH assets in Europe and the Americas complete
Interim Results 2015 Acquisition of LH assets in Europe and the Americas complete 1 global deal … 4 regional platforms Transaction complete 31 July* H1 2015: trading environment in line with expectations Regional and functional taskforces in place Synergy target confirmed … rigorous focus on integra
Slide 13: C.R. Laurence acquisition – Attractive growth platform
Interim Results 2015 C.R. Laurence acquisition – Attractive growth platform North America’s leading supplier to the glass/glazing industry Innovative high-value custom hardware products Expanding international presence – strong brand Highly complementary to existing BuildingEnvelope® platform Increa
Slide 14: C.R. Laurence acquisition – Significant operational overlap
Interim Results 2015 C.R. Laurence acquisition – Significant operational overlap Financed from existing resources Earnings and returns accretive in year 1 $1.3bn EV; 11x 2015F EBITDA (8x post-synergies) $40m synergies by year 2 – upside potential Procurement optimisation and cross-selling opportunit
Slide 15: Maximising the potential of recent acquisitions
Interim Results 2015 Maximising the potential of recent acquisitions Near-term focus now strongly on integration Applying CRH rigour to deliver profit and synergy ambitions Sharing skills and best practice … continuously improving Driving margins and returns … building better businesses 14
Slide 16: Disciplined capital management
Interim Results 2015 Disciplined capital management Term debt maturity profile – 30 June (€bn) 1.4 1.2 €1.6bn Share Placement (Feb 2015) 1.0 0.8 $1.75bn bond issue (May 2015) 0.6 Current average cost of debt 3.5% 0.4 0.2 No significant bond maturities in 2016/17 0.0 6+ 5 6 7 8 9 0 1 2 3 4 5 1 1 1 1
Slide 17: Restoring debt metrics to normalised levels in 2016
Interim Results 2015 Restoring debt metrics to normalised levels in 2016 1.2 ~1.5 2.0 ~1.0 €bn 2.9 7.4 8.6 ~6.0 2.5 Net debt LH Cash from Net debt CRL Pro forma Divestment On-going Pro forma 2014 acquisition balance post-LH acquisition net debt proceeds cash flows net debt debt sheet Net debt / EBIT
Slide 18: CRH – Continuing operations outlook H2 2015
Interim Results 2015 CRH – Continuing operations outlook H2 2015 Positive demand environment; Res/Non-Res strengthening; Infra stable Americas Expect H2 EBITDA* to be ahead of prior year (H2 2014: €0.7bn) Mixed economic backdrop; overall stable with some modest recovery Europe H2 EBITDA* to be broad
Slide 19: Conclusion
Interim Results 2015 Conclusion Margins and Portfolio returns management Integration Financial discipline 18
Slide 20: Appendix
Appendix
Slide 21: Group Key Components of Performance
Interim Results 2015 Group Key Components of Performance Operating Profit on Finance Equity € million Sales EBITDA PBT profit disposals cost (net) Accounted First Half 2014 8,324 505 171 17 (150) 23 61 Exchange effects 1,042 59 15 2 (14) 1 4 Acquisitions 69 6 3 - - - 3 Divestments (313) (40) (28) 35
Slide 22: Europe Heavyside
Interim Results 2015 Europe Heavyside Six months ended 30 June Analysis of change Total € million % Change 2015 2014 Change Organic Acquisitions Divestments One-off Exchange Sales revenue -7% 1,760 1,885 (125) (25) 3 (151) - 48 EBITDA* -22% 125 160 (35) 2 - (29) (10) 2 Operating profit* -37% 38 60 (
Slide 23: Europe Lightside
Interim Results 2015 Europe Lightside Six months ended 30 June Analysis of change Total € million % Change 2015 2014 Change Organic Acquisitions Divestments One-off Exchange Sales revenue 3% 475 463 12 (8) 1 - - 19 EBITDA* 5% 46 44 2 - - - - 2 Operating profit* 3% 33 32 1 (1) - - - 2 EBITDA/Sales 9.
Slide 24: Europe Distribution
Interim Results 2015 Europe Distribution Six months ended 30 June Analysis of change Total € million % Change 2015 2014 Change Organic Acquisitions Divestments One-off Exchange Sales revenue 5% 2,010 1,922 88 (20) 25 - - 83 EBITDA* -32% 54 79 (25) - 1 - (30) 4 Operating profit* -63% 16 43 (27) 1 - -
Slide 25: Americas Materials
Interim Results 2015 Americas Materials Six months ended 30 June Analysis of change Total € million % Change 2015 2014 Change Organic Acquisitions Divestments One-off Exchange Sales revenue 30% 2,235 1,718 517 131 25 (31) - 392 EBITDA* 79% 113 63 50 35 3 - (2) 14 Operating loss* 44% (34) (61) 27 40
Slide 26: Americas Products
Interim Results 2015 Americas Products Six months ended 30 June Analysis of change Total € million % Change 2015 2014 Change Organic Acquisitions Divestments One-off Exchange Sales revenue 21% 1,903 1,575 328 117 15 (131) - 327 EBITDA* 37% 179 131 48 29 2 (11) (2) 30 Operating profit* 40% 112 80 32
Slide 27: Americas Distribution
Interim Results 2015 Americas Distribution Six months ended 30 June Analysis of change Total € million % Change 2015 2014 Change Organic Acquisitions Divestments One-off Exchange Sales revenue 30% 987 761 226 53 - - - 173 EBITDA* 36% 38 28 10 3 - - - 7 Operating profit* 41% 24 17 7 3 - - - 4 EBITDA/
Slide 28: Analysis by Segment
Interim Results 2015 Analysis by Segment Sales (€m) H1 2015 H1 2014 % chg EBITDA (€m) H1 2015 H1 2014 % chg Europe Heavyside 1,760 1,885 -7% Europe Heavyside 125 160 -22% Europe Lightside 475 463 +3% Europe Lightside 46 44 +5% Europe Distribution 2,010 1,922 +5% Europe Distribution 54 79 -32% Americ
Slide 29: Continuing operations by segment
Interim Results 2015 Continuing operations* by segment % Change % Change Reported currency Sales EBITDA Margin Constant currency Sales EBITDA Margin Europe Heavyside +1% +2% +10bps Europe Heavyside -2% - +10bps Europe Lightside +3% +4% +20bps Europe Lightside -1% - +10bps Europe Distribution +5% +6%
Slide 30: Europe Heavyside Cement
Interim Results 2015 Europe Heavyside Cement Volumes Var Price Var^ % chg H1 15 v H1 14 % chg H1 15 v H1 14 Ireland* +23% -1% UK +37% +3% Switzerland -10% -5% Finland -10% +1% Poland +1% -7% Ukraine -5% +23% * Domestic Volumes – excludes exports 29 ^ Based on local currency
Slide 31: Americas Materials Volume and Price Variances H1 15 v H1 14
Interim Results 2015 Americas Materials Volume and Price Variances H1 15 v H1 14 H1 Volumes H1 Prices ($) Total LFL Total LFL Aggregates +6% +3% +2% +4% Asphalt +6% +6% -2% -2% RMC -3% 0% +4% +4% 30
Slide 32: Euroconstruct Estimates 2015
Interim Results 2015 Euroconstruct Estimates 2015 Construction Output 2015 % chg Construction Output 2015 % chg Belgium +0.0% Poland +9.7% Denmark +1.2% Portugal +3.0% Finland +0.0% Spain +2.5% France -0.9% Switzerland -0.6% Germany +0.9% United Kingdom +5.7% Ireland +8.3% West Europe (EC-15) +1.6%
Slide 33: US Estimates 2015 (PCA)
Interim Results 2015 US Estimates 2015 (PCA) Construction Put-in-place % chg Construction Put-in-place % chg Total Construction Put-in-place +4.7% Office +12.3% Total Residential +6.7% Hotels, Motels +8.1% New Housing +8.6% Total Public +3.2% Single-Family +6.1% Highways & Streets +2.1% Multi-Family
Slide 34: Contact Us
Interim Results 2015 Contact Us CRH plc Investor Relations Belgard Castle Clondalkin Dublin D22 AV61 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 natu