CRH PLC · NYSE:CRH
CRH — FY2000 Earnings Presentation
29 slides from CRH's earnings presentation, Mar 6, 2001
Slide 1: 2000 Year End Results, 6 March 2001
2000 Year End Results, 6 March 2001 1
Slide 2: 2000 Highlights
2000 HIGHLIGHTS Sales € 8,870 m +32% Before goodwill After goodwill amortisation amortisation Trading profit € 931 m + 36% € 888 m + 34% 2000 Year End Results, 6 March 2001 Profit before tax € 740 m + 25% € 697 m + 22% Earnings per share 135.77 c +22% 124.92 c + 17% Cash earnings per share 223.94 c
Slide 3: 2000 Overview
2000 OVERVIEW n Geographic balance & sectoral spread maintains growth n Ireland: further strong volume and profit increases n UK: underlying advance despite tougher H2 markets n Europe: Materials strong, Products & Distribution mixed 2000 Year End Results, 6 March 2001 n Americas: good advance despi
Slide 4: Republic of Ireland
REPUBLIC OF IRELAND Exchange Acquisitions Organic 2000 1999 2000 Sales € 671 m + 12% + € 71 m - - +€6m + € 65 m EBIT* € 139 m + 21% + € 24 m - - +€1m + € 23 m EBIT margin 20.7% (1999: 19.1% ) * after goodw ill amortisation nil (1999: nil) & including profit on disposals €5.0m (1999: €0.9m) n Strong
Slide 5: Britain & Northern Ireland
BRITAIN & NORTHERN IRELAND Exchange Acquisitions Disposals* * Organic 2000 1999/ 2000 Sales € 698 m - 18% - € 150 m + € 47 m + € 27 m - € 270 m + € 46 m EBIT* € 56 m - 6% -€ 4m +€ 4m +€ 1m - € 11 m +€ 2m EBIT margin 8.0% (1999: 7.0% ) * after goodw ill amortisation €5.1m (1999: €4.3m) & including pr
Slide 6: Mainland Europe
MAINLAND EUROPE Exchange Acquisitions Organic 2000 1999 2000 Sales € 2,031 m + 29% + € 450 m +€ 9m + € 192 m + € 200 m + € 49 m EBIT* € 160 m + 54% + € 56 m +€ 1m +€ 28 m + € 12 m + € 15 m EBIT margin 7.9% (1999: 6.6% ) * after goodw ill amortisation €19.1m (1999: €7.6m) & including profit on dispos
Slide 7: The Americas
THE AMERICAS Exchange Acquisitions Organic 2000 1999 2000 Sales € 5,470 m + 48% + €1,765 m + € 571 m + € 270 m + € 814 m + € 110 m EBIT* € 533 m + 39% + € 148 m + € 59 m - € 15 m + € 88 m + € 16 m EBIT margin 9.8% (1999: 10.4% ) * after goodw ill amortisation €19.1m (1999: €7.7m) & including profit
Slide 8: The Americas
THE AMERICAS Exchange Acquisitions Organic 2000 1999 2000 Sales € 5,470 m + 48% + €1,765 m + € 571 m + € 270 m + € 814 m + € 110 m EBIT* € 533 m + 39% + € 148 m + € 59 m - € 15 m + € 88 m + € 16 m EBIT margin 9.8% (1999: 10.4% ) * after goodw ill amortisation €19.1m (1999: €7.7m) & including profit
Slide 9: Acquisition Spend of €1.6bn
2000 ACQUISITION SPEND OF €1.6bn n Larger deals € 0.9 bn: Ô The Shelly Company, Materials USA: € 348 m Ô Yule Catto Rooflights, Germany, Netherlands, UK, Ireland: € 77 m Ô Dolomite Group and Northern Ohio Paving, Materials USA: € 179 m 2000 Year End Results, 6 March 2001 Ô The Jura Group, Materials
Slide 10: Components of Growth
2000 COMPONENTS OF GROWTH €m Sales EBITA Goodw ill Interest EBT Amortisation 1999 6,734 684 (20) (93) 571 2000 Year End Results, 6 March 2001 2000 8,870 931 (43) (191) 697 Increase +32% +36% +22% 10
Slide 11: Components of Growth
2000 COMPONENTS OF GROWTH €m Sales EBITA Goodw ill Interest EBT Amortisation 1999 6,734 684 (20) (93) 571 Exchange effects 627 65 (1) (10) 54 2000 Year End Results, 6 March 2001 2000 8,870 931 (43) (191) 697 Increase +32% +36% +22% 11
Slide 12: Components of Growth
2000 COMPONENTS OF GROWTH €m Sales EBITA Goodw ill Interest EBT Amortisation 1999 6,734 684 (20) (93) 571 Exchange effects 627 65 (1) (10) 54 Disposed Businesses (270) (11) - 8 (3) 2000 Year End Results, 6 March 2001 2000 8,870 931 (43) (191) 697 Increase +32% +36% +22% 12
Slide 13: Components of Growth
2000 COMPONENTS OF GROWTH €m Sales EBITA Goodw ill Interest EBT Amortisation 1999 6,734 684 (20) (93) 571 Exchange effects 627 65 (1) (10) 54 Disposed Businesses (270) (11) - 8 (3) 1999 acquisitions 470 27 (12) (36) (21) 2000 Year End Results, 6 March 2001 2000 8,870 931 (43) (191) 697 Increase +32%
Slide 14: Components of Growth
2000 COMPONENTS OF GROWTH €m Sales EBITA Goodw ill Interest EBT Amortisation 1999 6,734 684 (20) (93) 571 Exchange effects 627 65 (1) (10) 54 Disposed Businesses (270) (11) - 8 (3) 1999 acquisitions 470 27 (12) (36) (21) 2000 Year End Results, 6 March 2001 2000 acquisitions 1,039 110 (10) (60) 40 20
Slide 15: Components of Growth
2000 COMPONENTS OF GROWTH €m Sales EBITA Goodw ill Interest EBT Amortisation 1999 6,734 684 (20) (93) 571 Exchange effects 627 65 (1) (10) 54 Disposed Businesses (270) (11) - 8 (3) 1999 acquisitions 470 27 (12) (36) (21) 2000 Year End Results, 6 March 2001 2000 acquisitions 1,039 110 (10) (60) 40 Or
Slide 16: Cash Earnings Per Share
2000 CASH EARNINGS PER SHARE % cent increase Earnings before goodwill amortisation 135.77 22 Depreciation 88.17 35 2000 Year End Results, 6 March 2001 Cash earnings per share 223.94 27 16
Slide 17: Funds Flow
2000 FUNDS FLOW 1999 2000 €m € m Inflows PBT 571 697 Depreciation 255 352 Goodwill amortisation 20 43 846 1,092 Outflows Working capital (47) (75) Tax paid (160) (140) Dividends (71) (82) 2000 Year End Results, 6 March 2001 Replacement capital expenditure (246) (320) Other (14) (23) (538) (640) Oper
Slide 18: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS 1999 2000 Sales margins 13.9% EBITDA 14.5% 10.1% EBITA 10.5% 9.9% EBIT 10.0% 2000 Year End Results, 6 March 2001 26.6% Tax Rate 27.8% 17.5% Return on average net assets 16.3% 18.3% Return on average equity 16.6% 18
Slide 19: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS Y/ E Y/ E 1999 2000 1,420.7 Acquisition spend (€ m) 1,605.1 1,669.3 Debt (€ m) 2,619.8 2,257.5 Shareholders’ funds (€ m) 3,128.1 2000 Year End Results, 6 March 2001 73.9 Debt/shareholders’ funds (% ) 83.8 19.9 Debt/market capitalisation (% ) 31.9 Interest cover 10.1 EBI
Slide 20: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n CRH is organised for performance and growth n Devolved development structure with 14 teams delivers acquisition momentum n Acquisition spend ‘96: €532m, ‘97:€241m, ‘98:€604m, ‘99:€1,421m, ‘00:€1,605m n Reflected in an exceptional 5 year growth record 2000 Year End Result
Slide 21: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n CRH is organised for performance and growth n Devolved development structure with 14 teams delivers acquisition momentum n Acquisition spend ‘96: €532m, ‘97:€241m, ‘98:€604m, ‘99:€1,421m, ‘00:€1,605m n Reflected in an exceptional 5 year growth record 1996 1997 1998 1999
Slide 22: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n CRH is organised for performance and growth n Devolved development structure with 14 teams delivers acquisition momentum n Acquisition spend ‘96: €532m, ‘97:€241m, ‘98:€604m, ‘99:€1,421m, ‘00:€1,605m n Reflected in an exceptional 5 year growth record 1996 1997 1998 1999
Slide 23: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n CRH is organised for performance and growth n Devolved development structure with 14 teams delivers acquisition momentum n Acquisition spend ‘96: €532m, ‘97:€241m, ‘98:€604m, ‘99:€1,421m, ‘00:€1,605m n Reflected in an exceptional 5 year growth record 1996 1997 1998 1999
Slide 24: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n CRH is organised for performance and growth n Devolved development structure with 14 teams delivers acquisition momentum n Acquisition spend ‘96: €532m, ‘97:€241m, ‘98:€604m, ‘99:€1,421m, ‘00:€1,605m n Reflected in an exceptional 5 year growth record 1996 1997 1998 1999
Slide 25: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n CRH is organised for performance and growth n Devolved development structure with 14 teams delivers acquisition momentum n Acquisition spend ‘96: €532m, ‘97:€241m, ‘98:€604m, ‘99:€1,421m, ‘00:€1,605m n Reflected in an exceptional 5 year growth record 1996 1997 1998 1999
Slide 26: Background to Rights Issue
BACKGROUND TO RIGHTS ISSUE n Backs the substantial resources committed to development n Enables us to take advantage of future opportunities n At 5 March, 2001 € 453 m deals approved and pending; 80% Europe, 20% Americas n Occasional equity inputs a feature of CRH development Issue Price Amount % of
Slide 27: Outlook 2001
OUTLOOK 2001 Ireland Residential, commercial and industrial demand still buoyant National Development Plan underpins infrastructure Prospect of another good year UK Outlook relatively flat, high energy costs a challenge Emphasis on efficiency improvements and realisation of price increases Europe Ge
Slide 28: Conclusion
CONCLUSION n Strong 2000 performance despite energy, weather n Some challenges ahead, but markets positive on balance n Keen operational and cost focus 2000 Year End Results, 6 March 2001 n Unique balance underpins performance and prospects n Tried and tested development strategy n Current funding t
Slide 29: Year End Results, March 2001
2000 Year End Results, 6 March 2001 29