Slide 1: CRH Interim Results 2014
CRH Interim Results 2014 19 August 2014
Slide 2: Agenda
Agenda H1 2014 Results Portfolio Review Full Year Outlook Q&A CRH plc, Interim Results 2014 Page 1
Slide 3: Key Points – H1 2014
Key Points – H1 2014 • Results in-line with guidance • Modest if mixed recovery • Strong operating leverage • Portfolio Review progressing • H1 dividend maintained CRH plc, Interim Results 2014 Page 2
Slide 4: Trading Overview – CRH Group
Trading Overview – CRH Group €m % chg H1’14 H1’13 Contrasting weather patterns US/EU Sales +4% 8,324 8,007 EBITDA +27% 505 397 Positive start; Solid growth (+5% LFL) EBITDA % 6.1% 5.0% Strong operating leverage Strong bottom-line delivery on moderate top-line growth CRH plc, Interim Results 2014 P
Slide 5: H1 2014 – Sales Trends (LFL)
H1 2014 – Sales Trends (LFL) Europe Americas Strong start … easing trends Continued improvement % chg Jan/Apr May/Jun H1 % chg Jan/Apr May/Jun H1 Materials +8% +2% +7% Materials +4% +3% +4% Products +16% - +9% Products +3% +5% +5% Distribution +8% -4% +4% Distribution -2% +7% +2% Europe +10% -1% +6%
Slide 6: Trading Overview – Europe Materials
Trading Overview – Europe Materials €m % chg H1’14 H1’13 Significant volume growth Sales +9% 1,087 993 EBITDA +75% 103 59 Pricing competitive EBITDA % 9.5% 5.9% Strong margin advance Strong operational leverage CRH plc, Interim Results 2014 Page 5
Slide 7: Trading Overview – Europe Products
Trading Overview – Europe Products €m % chg H1’14 H1’13 UK/DE good markets Sales +10% 1,261 1,147 EBITDA +87% 101 54 NL/BE stabilising; FR remains weak EBITDA % 8.0% 4.7% Restructuring benefits Stabilising economies … good weather … improved margins CRH plc, Interim Results 2014 Page 6
Slide 8: Trading Overview – Europe Distribution
Trading Overview – Europe Distribution €m % chg H1’14 H1’13 GBM – significant profit growth Sales +5% 1,922 1,837 EBITDA +25% 79 63 DIY – resilient RMI demand EBITDA % 4.1% 3.4% SHAP – improvement in BE/DE Benefits of leverage and profit improvement initiatives CRH plc, Interim Results 2014 Page 7
Slide 9: Trading Overview – Americas Materials
Trading Overview – Americas Materials €m % chg H1’14 H1’13 H1 Volumes Price Sales - 1,718 1,710 Total LFL LFL EBITDA +21% 63 52 Aggs +6% +4% +3% Asphalt +3% +3% - EBITDA % 3.7% 3.0% RMC +8% +7% +4% US$ sales (LFL) up +4% CRH plc, Interim Results 2014 Page 8
Slide 10: Trading Overview – Americas Products
Trading Overview – Americas Products €m % chg H1’14 H1’13 LFL US$ sales +5% Sales +1% 1,575 1,562 EBITDA -10% 131 145 Res – Single vs Multi-family units EBITDA % 8.3% 9.3% Non-Res – improving order backlogs Weather-affected first half … Good fundamentals CRH plc, Interim Results 2014 Page 9
Slide 11: Trading Overview – Americas Distribution
Trading Overview – Americas Distribution €m % chg H1’14 H1’13 LFL US$ Sales +2% Sales - 761 758 Exterior: Lower roofing activity EBITDA +17% 28 24 Tough price environment EBITDA % 3.7% 3.2% Interior: Positive pricing Multi-family Res growth Benefits of balance … Strong Interiors offsetting weaker
Slide 12: H1 2014 – EBITDA Margins Ahead in 5 of 6 Divisions
H1 2014 – EBITDA Margins Ahead in 5 of 6 Divisions EBITDA % H1’14 H1’13 Europe Materials 9.5% 5.9% Europe Products 8.0% 4.7% Europe Distribution 4.1% 3.4% Americas Materials 3.7% 3.0% Americas Products 8.3% 9.3% Americas Distribution 3.7% 3.2% Group 6.1% 5.0% CRH plc, Interim Results
Slide 13: H1 2014 – Components of Performance
H1 2014 – Components of Performance €m Sales EBITDA H1 2013 8,007 397 Acquisitions – Seasonal impact FX translation (203) (13) Acquisitions/Divestments 130 6 Action –– Cumulative Cost action Cumulative benefits benefits Restructuring/CO2 - 16 Organic 390 99 Organic – Mainly Europe H1 2014 8,324 505
Slide 14: H1 2014 – Debt Position
H1 2014 – Debt Position €bn 30 June 14 Gross Debt 4.8 EBITDA/Interest 6.2x Gross Cash 1.1 S&P BBB+ … Moody’s Baa2 Net Debt 3.7 Cash/undrawn facilities* of €4.3bn Net Debt €0.5bn lower than June 2013 CRH plc, Interim Results 2014 * Including €600m Bond issuance in July 2014 Page 13
Slide 15: H1 2014 – Operating Cash Movements
H1 2014 – Operating Cash Movements €m H1’14 H1’13 • Investment in Working Capital 13% WC outflow 579 668 • Capital Expenditure reduced 26% CapEx 213 287 Delivered €0.3bn improvement in Operating Cash Flow vs. H1 2013 Tight cash management CRH plc, Interim Results 2014 Page 14
Slide 16: CRH – Financial Discipline
CRH – Financial Discipline Active debt management Balanced maturity profile Cash Reduced cost of debt Lowering the cost of capital supporting value creation CRH plc, Interim Results 2014 Page 15
Slide 17: Agenda
Agenda H1 2014 Results Portfolio Review Full Year Outlook Q&A CRH plc, Interim Results 2014 Page 16
Slide 18: Portfolio Review – Update
Portfolio Review – Update Optimise portfolio … reset CRH for growth Focus on core businesses … c80% of net assets; c90% of EBITDA Likely divestments … €1.5bn - €2bn Orderly multi-year programme Active portfolio management Restoring margins and returns to peak CRH plc, Interim Results 2014 Page 17
Slide 19: Portfolio Review – Concentrating on the Core
Portfolio Review – Concentrating on the Core Strong strategic platforms Proven value creation capability Opportunities for acquisition Organic growth potential A narrower, deeper, balanced portfolio … CRH plc, Interim Results 2014 Page 18
Slide 20: Portfolio Review – In Summary
Portfolio Review – In Summary Continuous Process … on-going portfolio management Capital Discipline … with dynamic capital re-allocation Balance … right markets; right companies Value Creation … returning to peak returns Active portfolio management … Delivering returns and growth CRH plc, Interim Re
Slide 21: Agenda
Agenda H1 2014 Results Portfolio Review Full Year Outlook Q&A CRH plc, Interim Results 2014 Page 20
Slide 22: 2014 – Full Year Outlook
2014 – Full Year Outlook • Modest if mixed economic recovery • H2’14 somewhat ahead of H2’13 (€1.08bn) ― H2 Europe … broadly in line ― H2 Americas … ahead • Full Year 2014 … a year of profit growth CRH plc, Interim Results 2014 Page 21
Slide 23: Agenda
Agenda H1 2014 Results Portfolio Review Full Year Outlook Q&A CRH plc, Interim Results 2014 Page 22
Slide 24: Appendices
Appendices CRH Interim Results 2014 19 August 2014
Slide 25: Key Components of H1 2014 Group Performance
Key Components of H1 2014 Group Performance Appendices € million Sales EBITDA (i) Operating Profit on Finance Assoc. Pre-tax revenue profit disposals costs and JV (loss)/ PAT profit First half 2013 as reported 8,007 397 41 18 (146) 16 (71) Exchange effects (203) (13) (4) (1) 3 (1) (3) Incremental im
Slide 26: Equity Accounted Investments
Equity Accounted Investments Appendices € million H1’14 H1’13 Sales 685 671 EBITDA 80 69 Operating Profit 46 33 Share of Joint Ventures’ Profit After Tax 9 9 Share of Associates’ Profit After Tax 14 7 Share of Equity Accounted Investments’ Profit After Tax 23 16 Prior to adoption of IFRS 11 ‘Joint A
Slide 27: Europe Materials – Performance components
Europe Materials – Performance components Appendices Analysis of change € million % Chg H1’14 H1’13 Change Organic Acquisitions Restructuring Pensions/CO2 Exchange Sales revenue +9% 1,087 993 +94 +69 +34 - - (9) EBITDA* +75% 103 59 +44 +37 +2 +1 +5 (1) Operating n/m 35 (10) +45 +40 (1) +1 +5 - profi
Slide 28: Europe Products – Performance components
Europe Products – Performance components Appendices Analysis of change € million % Chg H1’14 H1’13 Change Organic Acquisitions Divestments Restructuring Exchange Sales revenue +10% 1,261 1,147 +114 +105 +6 - - +3 EBITDA* +87% 101 54 +47 +37 - - +10 - Operating profit* n/m 57 3 +54 +44 - - +10 - EBIT
Slide 29: Europe Distribution – Performance components
Europe Distribution – Performance components Appendices Analysis of change € million % Chg H1’14 H1’13 Change Organic Acquisitions Divestments Restructuring Exchange Sales revenue +5% 1,922 1,837 +85 +72 +9 - - +4 EBITDA* +25% 79 63 +16 +18 - - (2) - Operating profit* +65% 43 26 +17 +19 - - (2) - EB
Slide 30: Americas Materials – Performance components
Americas Materials – Performance components Appendices Analysis of change € million % Chg H1’14 H1’13 Change Organic Acquisitions Divestments Restructuring Exchange Sales revenue - 1,718 1,710 +8 +62 +17 - - (71) EBITDA* +21% 63 52 +11 +9 +2 - +2 (2) Operating loss* +23% (61) (79) +18 +12 +1 - +2 +3
Slide 31: Americas Products – Performance components
Americas Products – Performance components Appendices Analysis of change € million % Chg H1’14 H1’13 Change Organic Acquisitions Divestments Restructuring Exchange Sales revenue +1% 1,575 1,562 +13 +71 +47 (6) - (99) EBITDA* -10% 131 145 (14) (7) +2 - - (9) Operating profit* -9% 80 88 (8) (2) - - -
Slide 32: Americas Distribution – Performance components
Americas Distribution – Performance components Appendices Analysis of change € million % Chg H1’14 H1’13 Change Organic Acquisitions Divestments Restructuring Exchange Sales revenue - 761 758 +3 +11 +23 - - (31) EBITDA* +17% 28 24 +4 +5 - - - (1) Operating profit* +31% 17 13 +4 +5 - - - (1) EBITDA/s
Slide 33: Analysis by segment
Analysis by segment Appendices Sales € m % Chg H1’14 H1’13 EBITDA € m % Chg H1’14 H1’13 Europe Materials +9% 1,087 993 Europe Materials +75% 103 59 Europe Products +10% 1,261 1,147 Europe Products +87% 101 54 Europe Distribution +5% 1,922 1,837 Europe Distribution +25% 79 63 Americas Materials - 1,7
Slide 34: Analysis by segment
Analysis by segment Appendices Operating Profit € m % Chg H1’14 H1’13 Profit on Disposal € m H1’14 H1’13 Europe Materials n/m 35 (10) Europe Materials 6 1 Europe Products n/m 57 3 Europe Products 3 7 Europe Distribution +65% 43 26 Europe Distribution - 1 Americas Materials +23% (61) (79) Americas Ma
Slide 35: H1 2014 acquisition activity €130m
H1 2014 acquisition activity €130m Appendices Acquisitions €130m 3 Europe deals 3 Distribution €11m 8 Americas deals 4 Materials; 4 Products €109m Other investments €10m €130m CRH plc, Interim Results 2014 Page 34
Slide 36: Euroconstruct estimates June 2014
Euroconstruct estimates June 2014 Appendices Construction Output 2014 % chg Construction Output 2014 % chg Belgium +0.3% Poland +4.2% Denmark +2.5% Portugal +0.0% Finland +0.8% Spain -5.0% France -1.2% Switzerland +2.0% Germany +2.9% United Kingdom +4.4% Ireland +9.7% Western E
Slide 37: PCA Spring Forecast 2014
PCA Spring Forecast 2014 Appendices Construction Put-in-place % chg Construction Put-in-place % chg New housing +23.2% Industrial +11.1% Single family +24.6% Office +9.7% Multi family +16.1% Hotels, motels +14.6% Improvements +2.8% Total Non-residential +8.7% Total Residential +8.3%
Slide 38: Contact Us
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 statements invol