Slide 1: 2021 Results
2021 Results Full Year Results 2021 0
Slide 2: Agenda
Agenda Market Overview Financial Performance & Capital Allocation Strategic Positioning 2022 Outlook Full Year Results 2021 1
Slide 3: Key Messages
Key Messages • Another year of record delivery … margins ahead despite inflationary environment • Strong cash generation … significant financial strength & flexibility • Disciplined capital allocation … $2bn invested in acquisitions & expansionary capex … $1.8bn cash returned to shareholders • Agree
Slide 4: 2021 Financial Highlights
2021 Financial Highlights Sales EPS $31.0bn +12% $3.29 +35% EBITDA Cash Flow $5.35bn +16% $4.2bn +7% Margin Returns 17.3% +50bps 12.3% +220bps Full Year Results 2021 3
Slide 5: Market Overview
Market Overview
Slide 6: No. 1 in North America
No. 1 in North America • Largest provider of integrated building materials … in the most profitable construction market in the world • Repositioned in recent years Steady RMI … NE & Midwest – resilient RMI activity Demand Higher Growth Markets … South & West – migration driving new-build growth … gr
Slide 7: Americas Materials – Trading Performance
Americas Materials – Trading Performance • Record performance … sales & EBITDA $m LFL • Volumes & prices ahead across all lines of business Sales 12,407 +6% • Margin expansion amid inflationary environment EBITDA 2,588 +7% • Positive demand backdrop … healthy backlogs Margin 20.9% +20bps Full Year R
Slide 8: Building Products – Trading Performance
Building Products – Trading Performance • Continued delivery across key businesses ... ... Architectural Products – ahead of record PY ... Infrastructure Products – strong demand ... Building Envelope – Non-Res activity improving $m LFL Sales 7,993 +5% • Integrated solutions strategy continuing to d
Slide 9: No. 1 in Europe
No. 1 in Europe • Western Europe … stable & developed … resilient RMI demand … the centre of sustainable construction innovation • Eastern Europe … higher growth Stability Growth … strong Infrastructure & Residential activity … emerging demand for end-to-end solutions … well positioned to benefit fr
Slide 10: Europe Materials – Trading Performance
Europe Materials – Trading Performance • Sales & EBITDA well ahead of PY and 2019 • Progressive margin management amid inflationary $m LFL environment Sales 10,581 +11% • Positive underlying construction demand EBITDA 1,410 +22% … Infrastructure growth in major markets … robust Residential demand Ma
Slide 11: Financial Performance & Capital Allocation
Financial Performance & Capital Allocation
Slide 12: Financial strength & flexibility …
Financial strength & flexibility … ~80% 1.2x Cash conversion Net Debt / EBITDA from EBITDA 1.8 4.2 1.6 $6.3bn $5.9bn 1.2 FY20 Net M&A / Dividends / FY21 Net Cash Inflow Capex Net Debt Other Buybacks Net Debt Full Year Results 2021 11
Slide 13: Acquisitions update ...
Acquisitions update ... • Increased M&A activity as visibility improved … 20 bolt-on transactions completed … $1.5bn invested; average multiple 7x EBITDA • Further developing integrated solutions strategy … materials, products & services across the value chain – “from products, to end-to-end solutio
Slide 14: Divestment of Building Envelope business
Divestment of Building Envelope business • Agreement reached to divest Building Envelope business … $3.8bn enterprise value • Attractive valuation … 10.5x 2021 EBITDA • Significant opportunity for capital reallocation … strong & active acquisition pipeline • Closing expected in H1 2022 … shareholder
Slide 15: Capital Allocation Optionality …
Capital Allocation Optionality … Expansionary Returns to Acquisitions Capex Shareholders • Attractive growth markets • Expanding capacity in high • Progressive dividends • Strong pipeline of growth markets • Ongoing share buyback opportunities • Low risk & high returning programme • Disciplined & va
Slide 16: Outperforming industry peers …
Outperforming industry peers … EBITDA Growth Margin Expansion Operating Cash (% Change 2018 - 2021) (2018 - 2021) (% Change 2018 - 2021) +480 +51% +33% +35% bps +39% +41% +40% +320 +24% +240 +18% bps +130 bps bps Global US Peers Peer Avg. CRH Global US Peers Peer Avg. CRH Global US Peers Peer Avg. C
Slide 17: Integrated Solutions Strategy
Integrated Solutions Strategy
Slide 18: An evolving business …
An evolving business … From base materials … … to end-to-end solutions … value-added products & services now ~65% of sales Full Year Results 2021 17
Slide 19: Integrated solutions strategy
Integrated solutions strategy A customer-centric approach ... • Partnering with customers to address the changing needs of construction • Full-service, end-to-end offering … design, manufacture, install, maintain, recycle • Uniquely integrating materials, products & services across the construction
Slide 20: Integrated solutions strategy
Integrated solutions strategy ... significant growth opportunities ... • Focusing on higher-growth markets with attractive fundamentals • Residential & large-scale horizontal construction ... on or below ground • Increasing demand for sustainable products & solutions • Evolving government policy & e
Slide 21: Integrated solutions strategy
Integrated solutions strategy ... delivering superior long-term shareholder value • Structurally higher growth & profitability • Reduced cyclicality ... increased exposure to publicly funded construction & RMI • Higher margins & returns ... simpler, leaner, less capital intensive • Strong cash gener
Slide 22: Well positioned for future growth & value creation …
Well positioned for future growth & value creation … Markets & solutions-driven growth Disciplined & value-focused acquisition strategy High-returning expansionary capex investments Mindset of continuous business improvement Increasing cash returns to shareholders Full Year Results 2021 21
Slide 23: Sustainability at the core of integrated solutions strategy
Sustainability at the core of integrated solutions strategy Increasing demand for a more resilient & circular built environment CO2 -25% Collaborating with customers to develop more value-added solutions & building practices … uniquely positioned across the value-chain reduction in carbon Delivering
Slide 24: Reducing the impact of construction on our world
Reducing the impact of construction on our world CO2 Alternative Green Lower Carbon Sustainable Recycled Materials Fuels Footprint End-Use Protecting scarce natural Replacing fossil fuels with Products that offer Innovative solutions that resources & prolonging neutral biomass enhanced sustainabilit
Slide 25: April Investor Update
April Investor Update
Slide 26: Investor Update – Agenda
Investor Update – Agenda $ Integrated Capital Sustainability Portfolio solutions allocation … key components of future growth strategy Full Year Results 2021 25
Slide 27: Investor Update – Agenda
Investor Update – Agenda Integrated solutions Portfolio • Delivering value to our ... • Continuing to re-shape & refine ... Customers ... value-added products & services Building out our integrated solutions strategy Business ... significant growth opportunities Complementary businesses Sh
Slide 28: Investor Update – Event Format
Investor Update – Agenda Event Format • Live webcast • Hosted by Albert Manifold (CEO), Jim Mintern (CFO), Randy Lake (COO) • 2pm GMT (9am EST), Thursday 21 April 2022 • Approximately 90 minutes duration including Q&A Full Year Results 2021 27
Slide 29: 2022 Outlook
2022 Outlook
Slide 30: 2022 Outlook …
2022 Outlook … • Underlying momentum remains supportive … favourable demand backdrop to continue • Challenges & uncertainties remain • Key areas of operational focus … … commercial excellence … strong cost control … supply chain management … another year of progress Full Year Results 2021 29
Slide 31: Appendices
Appendices
Slide 32: Group Components of Performance
Group Components of Performance Sales Operating Profit on Finance Assoc. and Pre-tax $ million EBITDA revenue profit disposals costs (net) JV PAT1 profit 2020 27,587 4,630 2,263 9 (490) (118) 1,664 Exchange effects 563 50 11 1 (9) - 3 2020 at 2021 rates 28,150 4,680 2,274 10 (499) (118) 1,667 Increm
Slide 33: Americas Materials
Americas Materials Analysis of change Impairment/ $ million 2020 Exchange Acquisitions Divestments Organic 2021 % Change One-offs1 Sales revenue 11,273 73 468 (96) - 689 12,407 +10% EBITDA 2,405 5 30 (48) 24 172 2,588 +8% Operating profit 1,631 (2) 3 (45) 28 173 1,788 +10% EBITDA/sales 21.3% 20.9% O
Slide 34: Europe Materials
Europe Materials Analysis of change Impairment1/ $ million 2020 Exchange Acquisitions Divestments Organic 2021 % Change One-offs2 Sales revenue 9,141 403 8 (57) - 1,086 10,581 +16% EBITDA 1,055 34 - (5) 83 243 1,410 +34% Operating profit (190) 7 - (2) 748 251 814 +528% EBITDA/sales 11.5% 13.3% Opera
Slide 35: Building Products
Building Products Analysis of change Impairment/ $ million 2020 Exchange Acquisitions Divestments Organic 2021 % Change One-offs1 Sales revenue 7,173 87 380 (29) - 382 7,993 +11% EBITDA 1,170 11 71 (5) 15 90 1,352 +16% Operating profit 822 6 49 (4) 19 91 983 +20% EBITDA/sales 16.3% 16.9% Operating p
Slide 36: Summary Financial Performance
Summary Financial Performance YoY LFL Change Sales EBITDA Margin Americas Materials +6% +7% +20bps Europe Materials +11% +22% +100bps Building Products +5% +8% +30bps Group +8% +11% +50bps Full Year Results 2021 35
Slide 37: Materials Volumes & Prices
Materials Volumes & Prices Americas Materials Europe Materials YoY % Change Volumes Price Volumes Price Aggregates1 +5% +2% +6% +4% Asphalt +8% +3% +4% +5% Cement +5% +5% +10% +1% RMC +4% +5% +8% +1% 1 Americas Materials aggregates pricing +4% on a mix-adjusted basis. Full Year Results 2021 36
Slide 38: Disclaimer / Forward-Looking Statements
Disclaimer / Forward-Looking Statements In order to utilise the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, CRH public limited company (the “Company”), and its subsidiaries (collectively, “CRH” or the “Group”) is providing the following cautionary
Slide 39: CRH plc Investor Relations
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 Full Year Results 2021 38