Crh Plc · NYSE:CRH
Crh — Investor Presentation (September 2015)
26 slides from Crh's investor presentation, September 2015
Slide 1: CRH plc 2015 - The International Building Materials Group
CRH plc 2015 - The International Building Materials Group 1
Slide 2: CRH Overview, Financial Performance, 2015 Acquisitions
CRH Overview Financial Performance 2015 Acquisitions
Slide 3: CRH – The International Building Materials Group
CRH – The International Building Materials Group Diversified Balanced Building Materials Sector & End Use Exposure Proven Strong Business Model Balance Sheet Unique BBB+ Acquisition Model Investment Grade INDUSTRY LEADING RETURNS THOUGH THE CYCLE CRH Overview, September 2015 3
Slide 4: CRH – Global Reach
CRH – Global Reach 37 Countries Building Materials spectrum Foundations to roofing 4,000 to interior space Locations and exterior environment 93,000 Employees 400 million tonnes Fortune 500 company of manufactured product London, Dublin & NY listing CRH Overview, September 2015 4
Slide 5: Americas
Americas #1 in North America Integrated building materials business National footprint Balanced across all sectors Attractive macro fundamentals Economy advancing steadily CRH Overview, September 2015 5
Slide 6: Europe
Europe Regional leadership positions Vertically integrated heavyside businesses Scalable lightside & distribution platforms Balanced by geography and end-use West – overall stable; some modest recovery Central/East – continued steady growth CRH Overview, September 2015 6
Slide 7: Emerging Markets
Emerging Markets #1 in North East China 26% associate stake in Yatai Building Materials 32m tonne cement capacity #1 in Andhra Pradesh & Telangana, India 50% JV with My Home Industries 8m tonne cement capacity New Markets in Philippines & Brazil #2 in Philippines, 5m tonne cement capacity Top #5 in
Slide 8: CRH Balance – Competitive Advantage from a Balanced Portfolio
CRH Balance – Competitive Advantage from a Balanced Portfolio Americas Europe Emerging Markets Materials – Aggs, Asphalt, RMC Heavyside – Cement, Aggs, Asphalt, RMC Heavyside – Cement, Aggs, RMC Products – Architectural, Precast, OBE Lightside – Const. Acc, Shutters, Fencing Distribution – Exterior
Slide 9: Leadership Positions
Leadership Positions Developing Europe Americas Economies Top 10 Cement No. 1 Asphalt No. 1 Building materials in Poland Regional leader No. 3 Aggregates and RMC No. 1 Cement North East in Aggregates & RMC China (26% Associate) No. 1 Construction No. 3 Construction No. 1 Cement Andhra Pradesh access
Slide 10: CRH Business Segments
CRH Business Segments Europe Americas Group Sales €8.8bn; EBITDA €0.67bn Sales €10.1bn; EBITDA €0.98bn Sales €18.9bn; EBITDA €1.64bn 11% 29% Heavyside Materials Europe 40% Lightside 27% Products 60% 57% 62% 14% Distribution Distribution Americas Sector Exposure Europe Americas Group Residential 50%
Slide 11: Proven Acquirer
Proven Acquirer 2.5 2.3 2.2 Development Spend 2.0 1.6 1.6 1.5 1.3 € bn 1.1 1.1 1.0 0.9 1.0 0.7 0.6 0.6 0.5 0.5 0.5 0.2 0.0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 # Deals 49 50 41 41 40 58 69 78 53 17 28 45 36 28 21 Over 650 acquisitions from 2000 - 2014 Total Spend: €16.2bn 2/3
Slide 12: Unique Dividend Record in Sector
Unique Dividend Record in Sector 70 300 60 250 DPS EPS 200 50 DPS (Euro Cent) EPS (Euro Cent) 150 40 100 30 50 20 0 10 -50 0 -100 1984 1989 1994 1999 2004 2009 2014 DIVIDEND MAINTAINED 2009-2014 AFTER 26 OF GROWTH CRH Overview, September 2015 As of year end 31/12/2014 12
Slide 13: Broad International Shareholder Base
Broad International Shareholder Base 741 million shares Close to 25,000 shareholders World class investor base Largely long-term institutional investors ADR: c7% CRH Overview, September 2015 As of year end 31/12/2014 13
Slide 14: CRH – A Sector Leader in Sustainable Performance
CRH – A Sector Leader in Sustainable Performance HIGHLY RANKED BY SOCIALLY RESPONSIBLE INVESTMENT RATING AGENCIES CRH Overview, September 2015 14
Slide 15: CRH Introduction, Financial Performance, 2015 Acquisitions
CRH Introduction Financial Performance 2015 Acquisitions
Slide 16: 2014 Highlights
2014 Highlights A year of profit growth 150bps improvement in RONA Margins up in all 6 divisions 22% operating leverage €0.9bn cash generated from operations Efficient allocation of capital 2014 - A YEAR OF GROWTH CRH Overview, September 2015 As of year end 31/12/2014 16
Slide 17: 2014 Headline Numbers
2014 Headline Numbers Sales €18.91bn 5% EBITDA €1.64bn 11% EPS 78.9c 33%* Dividend 62.5c Net Debt €2.5bn 16% *Based on 2013 EPS of 59.5c (pre-impairment) DELIVERY AHEAD OF GUIDANCE CRH Overview, September 2015 As of year end 31/12/2014 17
Slide 18: Restoring Margins and Returns to Peak Over Cycle
Restoring Margins and Returns to Peak Over Cycle EBITDA 2014 Margin RONA Europe Heavyside Europe Lightside Europe Distribution 2014 a year of progress on all fronts Americas Materials Operating leverage coming through Americas Products Margin progression and RONA improvement in Americas Distribution
Slide 19: Disciplined Capital Management
Disciplined Capital Management Term debt maturity profile – 30 June 2015 (€bn) 1.4 1.2 €1.6bn Share Placement (Feb 2015) 1.0 0.8 $1.75bn bond issue (May 2015) 0.6 0.4 Current average cost of debt 3.5% 0.2 No significant bond maturities in 2016/17 0.0 COMMITED TO INVESTMENT GRADE RATING CRH Overview,
Slide 20: CRH Introduction, Financial Performance, 2015 Acquisitions
CRH Introduction Financial Performance 2015 Acquisitions
Slide 21: Re-allocating capital into value-creating opportunities
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 CRH Overview, September 2015 21
Slide 22: Lafarge Holcim assets in Europe, Americas & Emerging Markets
Lafarge Holcim assets in Europe, Americas & Emerging Markets 1 global deal … 4 regional platforms Transaction completed H1 2015: trading environment in line with expectations Regional and functional taskforces in place Synergy target confirmed RIGOROUS FOCUS ON INTEGRATION AND DELIVERY CRH Overview,
Slide 23: Lafarge Holcim - Leading Market Positions in Regional Platforms
Lafarge Holcim - Leading Market Positions in 4 Regional Platforms Cement Aggregates RMC Asphalt North Canada America Great Britain Western France Europe Germany Romania Central and Slovakia Eastern Europe Hungary Serbia Emerging Philippines Markets Brazil STRENGTHENING EXISTING POSITIONS, DEVELOPING
Slide 24: C.R. Laurence – Attractive growth platform
C.R. Laurence – 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 Increased exposure to attractive Res/No
Slide 25: Maximising the potential of recent acquisitions
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 CRH Overview, September 2015 25
Slide 26: Contact Us
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 nature, such statements i