Slide 1: 2016 Interim Results
Slide 2: H1 2016 Key messages
H1 2016 Key messages • Strong profit delivery • Good operating leverage • Margins & returns ahead in all divisions • Good cash management • De-leveraging ahead of plan 1 2016 Interim Results
Slide 3: H1 2016 Financial highlights
H1 2016 Financial highlights Sales Reported Proforma €12.7bn +35% +8% EBITDA €1.12bn +102% +20% EBITDA margin 8.8% +290bps +90bps Dividend 18.8c +1.6% * Proforma comparisons are at constant currency; include the H1 2015 trading results of the LH and CRL acquisitions; and exclude all divested entitie
Slide 4: Trading Performance
Trading Performance
Slide 5: Europe – Market Backdrop
Europe – Market Backdrop 2016 GDP trends YoY change 0-1% 1-2% >2% • Very early stages of recovery • Impact of Brexit … as yet unclear • Construction markets well below long-term trends • Construction spend due to increase … over time CRH Presence 4 2016 Interim Results
Slide 6: Europe – Trading Performance
Europe – Trading Performance Proforma Sales EBITDA Margin • H1 carry-forward of Q4 2015 trends YoY change Q1 Q2 H1 H1 H1 • Volumes ahead in key markets Heavyside - +6% +4% +4% +10bps • Pricing ahead … in some markets Lightside +6% +11% +8% +14% +50bps • Modest growth expected in H2 Distribution - +2
Slide 7: Europe – Profit & Growth Potential
Europe – Profit & Growth Potential • #1 Heavyside business • New platforms for growth • Integration complete; synergy delivery on track • Significant pent-up demand 6 2016 Interim Results
Slide 8: Americas – Market Backdrop
Americas – Market Backdrop Every decade adds … • Positive economic environment; construction markets outpacing overall economy +30mPeople … • Res & Non-Res markets continue to advance • Infrastructure funding underpinned; real benefit +15mHomes … still to come • Demand environment supporting pricing
Slide 9: Americas – Trading Performance
Americas – Trading Performance Proforma Sales EBITDA Margin • Strong Q1 in benign weather YoY change Q1 Q2 H1 H1 H1 conditions Materials +27% +7% +12% +69% +300bps • Normalising growth rates in Q2 Products +22% +12% +16% +21% +50bps • Margins ahead in all divisions Distribution +17% +7% +11% +26% +5
Slide 10: Americas – Profit & Growth Potential
Americas – Profit & Growth Potential • #1 building materials company … & growing • Margins & returns ahead of expectations for current activity levels • Benefiting from restructuring & investment during downturn • CRL integration complete; performing ahead of expectations 9 2016 Interim Results
Slide 11: Asia – Market Backdrop & Trading Performance
Asia – Market Backdrop & Trading Performance Proforma H1 YoY change Sales EBITDA Margin Philippines +4% +7% +70bps • Philippines – solid fundamentals; positive demand environment; volumes & prices ahead • India* – volumes ahead on increased demand • China* – trading environment remains challenging *
Slide 12: H1 2016 EBITDA Performance Bridge
H1 2016 EBITDA Performance Bridge +20% €bn 21 (25) 190 379 1,120 934 555 H1 2015 H1 2015 H1 2015 H1 2016 H1 2016 FX H1 2016 (CRH) (LH Assets/CRL) (including LH (CRH) (LH Assets/CRL) Assets/CRL) Heritage businesses … delivering in H1 2016 11 2016 Interim Results
Slide 13: Financial Performance
Financial Performance™
Slide 14: Components of performance
Components of performance €m Sales EBITDA H1 2015 9,370 555 Excellent market positions … Organic 795 154 • Strong organic growth LH Assets / CRL 2,862 384 • Good operating leverage Other Acquisitions / (Disposals) (222) 4 Net Other - 32 • Acquisitions performing as expected Currency Translation (112
Slide 15: Operating cash movements
Operating cash movements €m H1 2015 H1 2016 Strong earnings delivery … EBITDA 555 1,120 … focus on cash performance … Capital expenditure (338) (408) • Improved working capital Working capital (597) (774) management Other (mainly interest & tax) (233) (263) • Good capex control Cash flow from operat
Slide 16: Outlook for year-end net debt position
Outlook for year-end net debt position €bn ~1.0 6.6 ~0.0 ~0.4 ~6.0 Cash flow from Acquisitions / FY 2015 Net Dividends FY 2016E operations Divestments Net debt / EBITDA 3x ~2x … De-leveraging ahead of plan 15 2016 Interim Results
Slide 17: CRH … continuing to build on solid foundations
CRH … continuing to build on solid foundations
Slide 18: Financial delivery
Financial delivery • On track to deliver >€3bn EBITDA in 2016 Strong Heritage Delivery • Recycling divestment proceeds for higher … restructuring & investment during downturn … realised through improved returns operating leverage • Good operating leverage; restoring margins & returns Disciplined Cap
Slide 19: Market positions
Market positions building materials • • 90%+ of EBITDA in North America & Europe Significant unutilised capacity across our 1 # company in North America businesses; well invested for growth • Americas not yet mid-cycle … Europe still heavyside building very early cycle 1 # materials company in Europ
Slide 20: US – Point in the cycle
US – Point in the cycle Housing starts (m) 4m 40 year average 1.5 1.1 Construction 1.0 Homes underbuilt 0.9 since 2010 Aggregates production (m tonnes) 2,462 in markets … 1 6 20 year average … well below 2,193 every 2,154 Miles of US roads in 2,030 need of repair Construction spend (as % of GDP) 50
Slide 21: Europe – Point in the cycle
Europe – Point in the cycle Housing starts (m) 400k p.a. 20 year average 1.55 1.14 Construction 1.09 Housing starts below 1.08 long-term averages Cement consumption (kg per capita) 405 market 2015 25 year average recovery … 292 298 All 19 Euroconstruct 304 economies grew Construction output (€ billi
Slide 22: Outlook
Outlook
Slide 23: Expectations for H2 2016
Expectations for H2 2016 • Europe – continued modest growth • Americas – H2 to be ahead of prior year • Asia – positive demand backdrop in the Philippines • FY 2016 – >€3bn EBITDA; ~2x net debt / EBITDA 22 2016 Interim Results
Slide 24: Appendices
Appendices
Slide 25: Group components of performance
Group components of performance Sales Operating Profit Finance Assoc. Pre-tax € million EBITDA revenue profit on disposals costs (net) & JV PAT profit H1 2015 9,370 555 189 72 (199) 1 63 Exchange effects (112) (9) (1) - 3 - 2 2015/2016 acquisitions 2,957 401 215 - (39) 1 177 2015/2016 divestments (3
Slide 26: Europe Heavyside
Europe Heavyside Six months ended Analysis of change 30 June Total € million % Change 2016 2015 Exchange Acquisitions Divestments Organic Change Sales revenue +107% 3,637 1,760 1,877 (42) 1,855 (93) 157 EBITDA +190% 362 125 237 (5) 249 (11) 4 Operating profit +326% 162 38 124 (3) 130 (7) 4 EBITDA/sa
Slide 27: Europe Lightside
Europe Lightside Six months ended Analysis of change 30 June Total € million % Change 2016 2015 Exchange Acquisitions Divestments Organic Change Sales revenue - 477 475 2 (9) 16 (26) 21 EBITDA +7% 49 46 3 (1) 1 (2) 5 Operating profit +15% 38 33 5 (1) 1 (1) 6 EBITDA/sales 10.3% 9.7% Op. profit/sales
Slide 28: Europe Distribution
Europe Distribution Six months ended Analysis of change 30 June Total € million % Change 2016 2015 Exchange Divestments Swiss Fine Organic Change Sales revenue -1% 1,982 2,010 (28) (20) (26) - 18 EBITDA +63% 88 54 34 - (1) 32 3 Operating profit +231% 53 16 37 - - 32 5 EBITDA/sales 4.4% 2.7% Op. prof
Slide 29: Americas Materials
Americas Materials Six months ended Analysis of change 30 June Total € million % Change 2016 2015 Exchange Acquisitions Divestments Organic Change Sales revenue +33% 2,975 2,235 740 - 529 (27) 238 EBITDA +122% 251 113 138 - 33 1 104 Operating n/m 61 (34) 95 - (2) 2 95 profit / (loss) EBITDA/sales 8.
Slide 30: Americas Products
Americas Products Six months ended Analysis of change 30 June Total € million % Change 2016 2015 Exchange Acquisitions Divestments Organic Change Sales revenue +18% 2,249 1,903 346 (41) 283 (145) 249 EBITDA +47% 264 179 85 (3) 60 - 28 Operating profit +78% 199 112 87 3 44 4 36 EBITDA/sales 11.7% 9.4
Slide 31: Americas Distribution
Americas Distribution Six months ended Analysis of change 30 June Total € million % Change 2016 2015 Exchange Acquisitions Divestments Organic Change Sales revenue +11% 1,099 987 112 - - - 112 EBITDA +26% 48 38 10 - - - 10 Operating profit +38% 33 24 9 - - - 9 EBITDA/sales 4.4% 3.9% Op. profit/sales
Slide 32: Asia
Asia Six months ended 30 June € million % Change 2016 2015 Sales revenue n/m 274 - EBITDA n/m 58 - Operating profit n/m 42 - EBITDA/sales 21.2% - Op. profit/sales 15.3% - 31 2016 Interim Results
Slide 33: CRH Proforma Sales – H1 2015
CRH Proforma Sales – H1 2015 Exclude CRH LH/CRL CRH incl. Divested Currency Proforma Reported Proforma1 LH/CRL entities Translation2 H1 2015 Sales €m €m €m €m €m €m Europe Heavyside 1,760 1,961 3,721 (93) (125) 3,503 Europe Lightside 475 475 (26) (9) 440 Europe Distribution 2,010 2,010 (26) (20) 1,9
Slide 34: CRH Proforma Sales – H1 2016
CRH Proforma Sales – H1 2016 Exclude CRH Divested Proforma Proforma Proforma Reported entities H1 2016 H1 2015 % Change Sales €m €m €m €m Europe Heavyside 3,637 - 3,637 3,503 4% Europe Lightside 477 - 477 440 8% Europe Distribution 1,982 - 1,982 1,964 1% Europe 6,096 - 6,096 5,907 3% Americas Materi
Slide 35: CRH Proforma EBITDA – H1 2015
CRH Proforma EBITDA – H1 2015 Exclude CRH LH/CRL CRH incl. LH Divested One- Currency Proforma Reported Proforma1 Assets/CRL entities off items² translation³ H1 2015 EBITDA €m €m €m €m €m €m €m Europe Heavyside 125 255 380 (10) 8 (16) 362 Europe Lightside 46 - 46 (2) - (1) 43 Europe Distribution 54 -
Slide 36: CRH Proforma EBITDA – H1 2016
CRH Proforma EBITDA – H1 2016 Exclude CRH Divested One-off Proforma Proforma Proforma Reported Entities Items1 H1 2016 H1 2015 % Change EBITDA €m €m €m €m €m Europe Heavyside 362 - 15 377 362 4% Europe Lightside 49 - - 49 43 14% Europe Distribution 88 - - 88 84 5% Europe 499 - 15 514 489 5% Americas
Slide 37: Cement Volumes & Prices – H1 2016
Cement Volumes & Prices – H1 2016 Proforma¹ Proforma¹ Volume Price (LC) Volume Price (LC) YoY % chg YoY % chg Finland +18% -2% Slovak Republic -2% +2% France +4% 0% Spain2 +9% -8% Germany +10% -3% Switzerland +5% -7% Hungary +7% -2% Ukraine +15% +18% Ireland² +15% -2% United Kingdom +21% -1% Poland
Slide 38: Americas Materials Volumes & Prices – H1 2016
Americas Materials Volumes & Prices – H1 2016 Proforma¹ Volume Price YoY % chg Aggregates +13% +3% Asphalt +17% -8% RMC +12% +4% 1 Year on year Proforma comparisons include the H1 2015 trading results of the now integrated LH Assets 37 2016 Interim Results
Slide 39: Euroconstruct Estimates 2016
Euroconstruct Estimates 2016 Total Construction Output Change Total Construction Output Change Austria +0.8% Portugal +2.5% Belgium +1.0% Netherlands +3.6% Denmark +1.8% Poland +5.8% Finland +5.3% Slovak Republic +2.0% France +2.5% Spain +3.7% Germany +2.2% Switzerland +1.2% Hungary +1.1% United Kin
Slide 40: US Estimates 2016 (PCA)
US Estimates 2016 (PCA) Construction Put-in-place Change Construction Put-in-place Change Total Construction Put-in-place +3.9% Hotels, Motels +12.8% Total Residential +5.5% Total Public +3.4% New Housing +9.5% Highways & Streets +4.2% Improvements -2.0% Public Utility & Other +2.9% Total Non-Reside
Slide 41: Contact Us
Contact Us CRH plc Investor Relations Stonemason’s Way Rathfarnham Dublin 16 D16 KH51 Ireland Telephone: +353 1 404 1000 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 involve unce