CRH PLC · NYSE:CRH
CRH — BB&T Manufacturing & Materials Conference 2008
37 slides from CRH's conference presentation, Mar 19, 2008
Slide 1: BB&T Manufacturing & Materials Conference
BB&T Manufacturing & Materials Conference New York Myles Lee Finance Director March 2008 BB&T Manufacturing & Materials Conference, 19th March 2008 1
Slide 2: Contents
Contents Overview & 2007 Highlights 2 Segmental Review 7 Development 16 Finance 18 Track Record & Outlook 24 Supplementary Information 30 Contact Us 36 BB&T Manufacturing & Materials Conference, 19th March 2008 1
Slide 3: CRH - The International Group
CRH - The International Group In 32 countries and in all 50 US States Developed World c85% EBITDA … Emerging Regions c15% BB&T Manufacturing & Materials Conference, 19th March 2008 2
Slide 4: 2007 Highlights
2007 Highlights A record year of Performance and Growth 2007 2006 2007 €m €m Change US$* Sales 20,992 18,737 +12% 28,770 Operating profit 2,086 1,767 +18% 2,859 Profit before tax 1,904 1,602 +19% 2,609 € cent € cent $ cent* Earnings per share 262.7 224.3 +17% 360.0 Cash Earnings per share 404.9 352.
Slide 5: 2007 Highlights
2007 Highlights A record year of Performance and Growth Revenue up 12%, Operating Profit up 18% Operating Profit margin increased to 9.9% (2006: 9.4%) PBT +19%, Earnings +17%, Dividend +31% Strong €1.1 billion operating cash inflow €2.2+ billion of acquisitions and investments which underp
Slide 6: 2007 Highlights
2007 Highlights Continuing long-term performance and growth EBITDA: €2.86 bn; up 16% EBITDA (€Bn) 10-yr cagr: +20% p.a. Op.Profit: €2.09 bn; up 18% Op. Profit (€Bn) 10-yr cagr: +20% p.a. BB&T Manufacturing & Materials Conference, 19th March 2008 5
Slide 7: 2007 Highlights
2007 Highlights Continuing long-term shareholder return EPS +17%; 15th year of growth EPS (cent) 10-yr cagr: +16% p.a. DPS +31%; 24th year of growth DPS (cent) 10-yr cagr: +18% p.a. BB&T Manufacturing & Materials Conference, 19th March 2008 6
Slide 8: Europe - Overall
Europe - Overall Strong Materials performance; good P&D advance Acquisitions €m 2007 2006 Change Organic 2006 2007 Non-Rec FX Sales +20% 10,714 8,939 +1,775 +694 +245 +861 - (25) Op. profit +36% 1,106 814 +292 +178 +27 +76 +12 (1) Op. margin 10.3% 9.1% Ex. non-rec. +34% 10.3% 9.2% Operating profit e
Slide 9: Europe Materials
Europe Materials Op.Profit +39%; mainly organic; strong margin progress Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +23% 3,651 2,967 +684 +457 +24 +210 (7) Op. profit +39% 586 421 +165 +125 +6 +34 - Op. margin 16.1% 14.2% Operating profit excludes profit on disposal € Op. Profit Irel
Slide 10: Europe Products
Europe Products Op.Profit +22%; good Organic & Acqs contributions Acquisitions €m 2007 2006 Change Organic 2006 2007 Non-Rec FX Sales +14% 3,628 3,186 +442 +161 +196 +85 - - Op. profit +39% 308 221 +87 +30 +20 +6 +31 - Op. margin 8.5% 6.9% Ex. non-rec +22% 8.5% 7.9% Operating profit excludes profit
Slide 11: Europe Products
Europe Products Op.Profit +22%; good Organic & Acqs contributions Acquisitions €m 2007 2006 Change Organic 2006 2007 Non-Rec FX Sales +14% 3,628 3,186 +442 +161 +196 +85 - - Op. profit +39% 308 221 +87 +30 +20 +6 +31 - Op. margin 8.5% 6.9% Ex. non-rec +22% 8.5% 7.9% Operating profit excludes profit
Slide 12: Europe Distribution
Europe Distribution Op.Profit +39%; good Organic & Acqs contributions Acquisitions €m 2007 2006 Change Organic 2006 2007 Non-Rec FX Sales +23% 3,435 2,786 +649 +76 +25 +566 - (18) Op. profit +23% 212 172 +40 +23 +1 +36 (19) (1) Op. margin 6.2% 6.2% Ex. non-rec +39% 6.2% 5.5% Operating profit exclude
Slide 13: Americas - Overall
Americas - Overall US$ Op. Profit +12%; robust Organic & strong Acqs Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +5% 10,278 9,798 +480 (456) +1,391 +354 (809) Op. profit +3% 980 953 +27 (14) +94 +25 (78) Op. margin 9.5% 9.7% Ex. APAC/MMI 10.6% 10.5% Operating profit excludes profit o
Slide 14: Americas Materials
Americas Materials Good funding & strong price dynamic drive margins Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +14% 5,445 4,778 +667 (61) +1,002 +127 (401) Op. profit +20% 570 475 +95 +42 +80 +12 (39) Op. margin 10.5% 9.9% Ex. APAC 12.1% 11.2% Operating profit excludes profit on di
Slide 15: Americas Products
Americas Products Resilient performance; NonRes growth an offset to Res Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales (2%) 3,510 3,572 (62) (186) +226 +185 (287) Op. profit (9%) 340 375 (35) (17) (1) +13 (30) Op. margin 9.7% 10.5% Ex. MMI 11.0% 11.3% Operating profit excludes profit on
Slide 16: Americas Distribution
Americas Distribution Resilient margin performance; down from 2006 high Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales (9%) 1,323 1,448 (125) (209) +163 +42 (121) Op. profit (32%) 70 103 (33) (39) +15 - (9) Op. margin 5.3% 7.1% Operating profit excludes profit on disposal US$ Op. Profit
Slide 17: CRH 2007 Acquisition Delivery
CRH 2007 Acquisition Delivery €2.2 billion spend; a new record for CRH EV Annualised EV / Sales EV / EBITDA** Dimensions (€ Bn) Sales* (€Bn) (x) (x) Europe 0.36 0.30 Americas* 0.64 0.60 Total Materials 1.00 0.90 1.1 6.5 Europe 0.22 0.30 Americas* 0.36 0.50 Total Products 0.58 0.80 0.7 6.5 Europe 0.4
Slide 18: CRH 2007 Major Cement Development
CRH 2007 Major Cement Development €0.7Bn Investment Commitment over 3 years Ireland: €200m investment … on-stream end-2008 ¾ new state-of-the-art 1.3 mtpa line to replace old 0.4 mtpa kiln Ukraine: JI-0001 €210m investment … on-stream end-2009 ¾ wet to dry conversion to give new state-of-the-art
Slide 19: Finance
Finance BB&T Manufacturing & Materials Conference, 19th March 2008 18
Slide 20: 2007 Components of Growth
2007 Components of Growth Continued Organic and Acquisition growth Acquisitions €m 2007 2006 Change Organic 2006 2007 Non-Rec FX Sales 20,992 18,737 +2,255 +238 +1,636 +1,215 - (834) Operating Profit 2,086 1,767 +319 +164 +121 +101 +12 (79) Profit on disposals 57 40 +17 +18 - - - (1) Trading Profit
Slide 21: Funds Flow
Funds Flow Strong operating cash inflow … 2007 2006 Inflows €M €M Profit before tax 1,904 1,602 Depreciation 739 664 Amortisation of intangibles 35 25 Working capital 227 (76) 2,905 2,215 Outflows Tax paid (388) (378) Dividends (318) (222) Capital expenditure (1,028) (832) Other (81) (51) (1,815) (1
Slide 22: Funds Flow
Funds Flow ... limits net Debt increase post record investment spend 2007 2006 €M €M Operating cash inflow 1,090 732 Acquisitions and investments (2,227) (2,311) Disposals (incl. ’06 APAC disposals) 156 252 Share issues 104 112 Purchase of Shares (31) (15) Translation 237 187 Debt increase (671) (1,
Slide 23: Key Financial Data
Key Financial Data Substantial capacity to pursue further opportunities Financial Strength ¾ 2007 EBITDA Interest Cover 9.4x … (bank covenants 4.5x) ¾ Strong €1.1 billion operating cashflow (post divs, tax, total CX) ¾ Committed to maintaining investment grade debt rating Focus is value-creation
Slide 24: Capital Management
Capital Management Delivering value for Shareholders Dividend Policy ¾ 2007 total dividend (up 31%), cover 3.9 times ¾ Target to achieve c 3.5 times cover for 2008 financial year Share Buyback ¾ Share repurchase programme of up to 5%, initiated January 2008 ¾ To-date, c.6m shares repurchased at
Slide 25: Track Record & Outlook
Track Record & Outlook BB&T Manufacturing & Materials Conference, 19th March 2008 24
Slide 26: Delivering through the Cycle
Delivering through the Cycle CRH strong track record GDP EPS Growth € cent 5% W Europe GDP US GDP CRH EPS 300 4% 240 3% 180 2% 120 1% 60 0% (1% ) (60) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1993 1993 –– 2007 2007 … … 15 15 consecutive consecutive ye
Slide 27: CRH Strategy
CRH Strategy Balanced exposure to industry demand drivers 2007 Product Balance Heavyside 75% Lightside 25% Concrete Other Distribution Materials Products Products 2007 Geographic Balance Europe Americas Emerging Yields performance stability & growth opportunity Approximate annualised EBITDA BB&T Man
Slide 28: 2008 Europe Outlook
2008 Europe Outlook Organic growth - strong CEE, moderate Eurozone Materials ¾ Expect further good progress in 2008 ¾ Although organic growth unlikely to be as strong as 2007 ¾ Ireland/Spain off their highs but strong growth in Poland/Ukraine Products & Distribution ¾ Following successful delive
Slide 29: 2008 Americas Outlook
2008 Americas Outlook Infra and Non-Res a counterbalance to Res Materials ¾ US Highway funding will increase further in 2008 ¾ Strong price dynamic, efficiency benefits & 2006/07 acqs contributions ¾ Look to another year of progress for this Infra-focused business Products & Distribution ¾ New U
Slide 30: Overall Outlook
Overall Outlook Twin goals – Performance and Growth Developments in recent months have added to economic uncertainties CRH well positioned to deal with evolving market conditions Relentless focus on price/cost effectiveness, benefits from 2007 acqs Higher dividend payout and share buyback
Slide 31: Supplementary Information
Supplementary Information BB&T Manufacturing & Materials Conference, 19th March 2008 30
Slide 32: Analysis by Segment
Analysis by Segment % €M 2007 2006 change Sales Europe Materials 3,651 2,967 +23% Europe Products 3,628 3,186 +14% Europe Distribution 3,435 2,786 +23% Americas Materials 5,445 4,778 +14% Americas Products 3,510 3,572 -2% Americas Distribution 1,323 1,448 -9% Total 20,992 18,737 +12% Operating Profi
Slide 33: Analysis by Region
Analysis by Region % €M 2007 2006 change Sales Ireland 1,402 1,251 +12% Benelux 2,918 2,628 +11% Rest of Europe 6,382 5,058 +26% Americas 10,290 9,800 +5% Total 20,992 18,737 +12% Operating Profit Ireland 159 157 +1% Benelux 270 218 +24% Rest of Europe 675 438 +54% Americas 982 954 +3% Total 2,086 1
Slide 34: Profit on Disposal
Profit on Disposal €M 2007 2006 Analysis by Segment Europe Materials 29 28 Europe Products 11 2 Europe Distribution 3 4 Americas Materials 11 2 Americas Products 2 3 Americas Distribution 1 1 Total 57 40 Analysis by Region Ireland 26 23 Benelux 7 3 Rest of Europe 9 8 Americas 15 6 Total 57 40 BB&T M
Slide 35: Foreign Currency Rates
Foreign Currency Rates Average Year-end euro 1= 2007 2006 2007 2006 US Dollar 1.3705 1.2556 1.4721 1.3170 Pound Sterling 0.6843 0.6817 0.7334 0.6715 Polish Zloty 3.7837 3.8959 3.5935 3.8310 Ukrainian Hryvnia 6.8982 6.3290 7.3588 6.6583 Swiss Franc 1.6427 1.5729 1.6547 1.6069 Canadian Dollar 1.4678 1
Slide 36: Euroconstruct Forecasts
Euroconstruct Forecasts Construction output 2008 (Euroconstruct November 2007) % Belgium Ï +2.1 Denmark Ï +0.5 Finland Ï +2.5 France Ï +1.5 Germany Ï +1.6 Ireland Ð -6.5 Netherlands Ï +3.2 Poland Ï +15.2 Portugal Ï +0.4 Spain Ð -0.6 Sweden Ï +3.6 Switzerland Ï +1.6 United Kingdom Ï +2.4 BB&T Manufac
Slide 37: 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 or look up our Website - www.crh.com This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such