CRH PLC · NYSE:CRH
CRH — FY2004 Earnings Presentation
29 slides from CRH's earnings presentation, Mar 1, 2005
Slide 1: CRH plc, 2004 Results, 1 March 2005
Liam O’Mahony, Chief Executive Myles Lee, Finance Director CRH plc, 2004 Results, 1 March 2005 1
Slide 2: Contents
Contents 2004 Highlights 2 2004 Overview 3 Republic of Ireland 4 Britain & Northern Ireland 5 Mainland Europe - Materials 6 Mainland Europe - Products & Distribution 7 Americas - Materials 8 Americas - Products & Distribution 9 US Distribution Asbestos Claims 10 2004 Development Spend - €1bn 11 2004
Slide 3: 2004 Highlights
2004 Highlights % change in 2004 2004 2003 Constant Reported €m €m Reported Currency Sales 12,820 11,080 +16% +22% Operating profit before goodwill 1,247 1,045 +19% +25% Profit before tax 1,017 864 +18% +23% € cent € cent EPS before goodwill 163.1 136.2 +20% +26% EPS after goodwill 143.9 121.9 +18%
Slide 4: 2004 Overview
2004 Overview z Substantial 71% increase in H1 PBT to €275m (2003: €161m) reflected: Î Strong organic growth aided by more normal seasonal weather Î Significant incremental contributions from acquisitions Î Minor €4m adverse translation impact due to seasonally low H1 US$ profits z 6% increase in H2
Slide 5: Republic of Ireland
Republic of Ireland Analysis of change Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +10% 804 732 +72 - - - +72 Op profit* -1% 129 130 -1 - - - -1 Op margin 16.1% 17.8% *excluding goodwill amortisation €0.3m (2003: €0.3m) and profit on disposal €0.6m (2003: €3.4m) z Total 2004 construction ou
Slide 6: Britain & Northern Ireland
Britain & Northern Ireland Analysis of change Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +8% 749 692 +57 +13 - +7 +37 Op profit* +12% 64 57 +7 +1 - +1 +5 Op margin 8.6% 8.3% *excluding goodwill amortisation €5.4m (2003: €5.1m) and loss on disposal -€1.0m (2003 profit: €3.5m) z UK housing a
Slide 7: Mainland Europe - Materials
Mainland Europe - Materials Analysis of change Acquisitions JV to €m 2004 2003 FX 2003 2004 Assoc Organic Sales +28% 1,286 1,007 +279 -16 +13 +271 -65 +76 Op profit* +46% 194 133 +61 -2 +1 +40 - +22 Op margin 15.1% 13.2% *excluding goodwill amortisation €21.1m (2003: €20.2m) and profit on disposal €
Slide 8: Mainland Europe - Products & Distribution
Mainland Europe - Products & Distribution Analysis of change Acquisitions Reorg. €m 2004 2003 FX 2003 2004 costs Organic Sales +39% 3,664 2,636 +1,028 -7 +871 +120 - +44 Op profit* +62% 269 166 +103 - +83 +7 - +13 Op margin 7.3% 6.3% *excluding goodwill amortisation €33.4m (2003: €13.8m) and loss on
Slide 9: Americas - Materials
Americas - Materials Analysis of change Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales - 2,842 2,831 +11 -257 +48 +40 +180 Op profit* -7% 272 291 -19 -26 -4 +6 +5 Op margin 9.6% 10.3% *excluding goodwill amortisation €19.2m (2003: €17.9m) and profit on disposal €5.8m (2003: €2.8m) z Improvemen
Slide 10: Americas - Products & Distribution
Americas - Products & Distribution Analysis of change Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +9% 3,475 3,182 +293 -278 +104 +149 +318 Op profit* +19% 319 268 +51 -23 +11 +18 +45 Op margin 9.2% 8.4% *excluding goodwill amortisation €22.0m (2003: €18.2m) and profit on disposal €6.3m (200
Slide 11: US Distribution Asbestos Claims
US Distribution Asbestos Claims z No material change in position z 251 claimants announced 30th September 2002 z 123 new claimants notified in last 29 months z 118 claims disposed of since September 2002 for US$73,200 gross z 256 claimants outstanding at end-February 2005 z We believe these claims a
Slide 12: 2004 Development Spend - €1bn
2004 Development Spend - €1bn z Europe Materials €0.48bn Î Secil 49% with joint control gives new geographic platforms in Iberia/Mediterranean Î Significant bolt-ons in Finland and Switzerland plus Swiss cement plant expansion z Europe Products & Distribution €0.18bn Î Major additions to Concrete an
Slide 13: 2004 Components of Growth
2004 Components of Growth €m Sales EBITA Goodwill Disposals Interest EBT 2003 reported 11,080 1,045 (76) 13 (118) 864 Exchange effects (545) (50) 3 - 7 (40) 2003 at 2004 FX rates 10,535 995 (73) 13 (111) 824 Incremental impact 2003 acquisitions 1,036 91 (23) - (39) 29 2004 acquisition 587 72 (5) - (
Slide 14: Key Financial Data and Ratios
Key Financial Data and Ratios 2004 2003 Sales margins *EBITDA 13.6% 13.6% *EBITA (operating profit) 9.7% 9.4% EBIT 9.0% 8.9% Tax rate 24.3% 25.2% EBITA Return on Average Net Assets 15.0% 13.8% EBIT Return on Average Net Assets 13.9% 13.0% * excluding profit on disposals CRH plc, 2004 Results, 1 Marc
Slide 15: 2004 Funds Flow
2004 Funds Flow 2004 2003 Inflows €m €m Profit before tax 1,017 864 Depreciation 494 458 Goodwill amortisation 101 76 1,612 1,398 Outflows Working capital (100) (58) Tax paid (188) (103) Dividends (163) (150) Capital expenditure (520) (402) Other (58) (30) (1,029) (743) Operating cash inflow 583 655
Slide 16: Debt Ratios & Interest Cover
Debt Ratios & Interest Cover Y/E Y/E 2004 2003 Debt (€bn) 2.4 2.3 Shareholders’ funds (€bn) 5.2 4.7 Debt/shareholders’ funds 46% 48% Debt/year-end market capitalisation 23% 27% Interest cover* EBITDA/Net Interest 13.2 13.1 EBIT/Net Interest 8.5 8.4 * excluding JVs CRH plc, 2004 Results, 1 March 2005
Slide 17: 2005 Outlook - Europe Materials
2005 Outlook - Europe Materials z Ireland: Housing strong but moderating, non-res improving, infrastructure timing factors z Finland: Residential and non-residential demand to offset infrastructure declines z Poland: Expect improving housing market and benefits from EU structural funds z Switzerland
Slide 18: 2005 Outlook - Europe Products & Distribution
2005 Outlook - Europe Products & Distribution z Holland: Modest growth driven by new housing and broadly based RMI z Belgium: Stronger housing and continued strength in commercial activity z France: Continued growth, but at a lower rate than 2004 z Germany: Construction activity is forecast to show
Slide 19: 2005 Outlook - Americas Materials
2005 Outlook - Americas Materials z TEA-21 extended to end-May with annualised funding of US$34.4bn z New 6-year programme expected to be authorised towards mid-2005 z Unlikely to benefit 2005, but should lead to stronger volumes thereafter z State finances generally improving but still some deficit
Slide 20: 2005 Outlook - Americas Products & Distribution
2005 Outlook - Americas Products & Distribution z Approximately 90% residential/non-residential building end-use z 2005 US economic growth looks likely to be solid z US housing expected to remain broadly at current strong levels z Demand underpinned by demographics, moderate unemployment, low intere
Slide 21: 2005 Outlook - Overall
2005 Outlook - Overall z Continuing volatility in energy and currency markets z Current outlook for our various markets on the whole positive z Expect further progress in our European operations z And an improved US$ outcome in the Americas z Continuing relentless emphasis on performance and input c
Slide 22: Supplementary Information
SUPPLEMENTARY SUPPLEMENTARY INFORMATION INFORMATION CRH plc, 2004 Results, 1 March 2005 21
Slide 23: Analysis by Division
Analysis by Division % €m 2004 2003 change Sales Europe Materials 2,354 1,984 +19% Europe Products 2,245 1,721 +30% Europe Distribution 1,904 1,362 +40% Americas Materials 2,842 2,831 - Americas Products 2,461 2,196 +12% Americas Distribution 1,014 986 +3% Total 12,820 11,080 +16% Operating profit*
Slide 24: Analysis by Division
Analysis by Division €m 2004 2003 Goodwill amortisation Europe Materials 21.2 20.3 Europe Products 24.2 16.1 Europe Distribution 14.8 3.0 Americas Materials 19.2 17.9 Americas Products 17.6 14.0 Americas Distribution 4.4 4.2 Total 101.4 75.5 Profit on disposal Europe Materials 0.6 6.3 Europe Product
Slide 25: Analysis by Region
Analysis by Region % €m 2004 2003 change Sales Ireland 804 732 +10% Britain & Northern Ireland 749 692 +8% Mainland Europe 4,939 3,635 +36% Americas 6,328 6,021 +5% Total 12,820 11,080 +16% Operating profit* Ireland 129 130 -1% Britain & Northern Ireland 64 57 +12% Mainland Europe 462 298 +55% Ameri
Slide 26: Analysis by Region
Analysis by Region €m 2004 2003 Goodwill amortisation Ireland 0.3 0.3 Britain & Northern Ireland 5.4 5.1 Mainland Europe 54.5 34.0 Americas 41.2 36.1 Total 101.4 75.5 Profit on disposal Ireland 0.6 3.4 Britain & Northern Ireland (1.0) 3.5 Mainland Europe (0.4) 3.1 Americas 12.1 3.0 Total 11.3 13.0 C
Slide 27: Foreign Currency Rates
Foreign Currency Rates Average Year-end euro 1 = 2004 2003 2004 2003 US Dollar 1.2439 1.1312 1.3621 1.2630 Pound Sterling 0.6787 0.6920 0.7051 0.7048 Polish Zloty 4.5268 4.3996 4.0845 4.7019 Swiss Franc 1.5438 1.5212 1.5429 1.5579 Argentine Peso 3.6572 3.3314 4.0488 3.6955 CRH plc, 2004 Results, 1 M
Slide 28: Euroconstruct Forecasts
Euroconstruct Forecasts Construction output 2005 % Belgium Ï +9.8 Denmark Ï +1.3 Finland Ï +2.8 France Ï +1.7 Germany Ð -0.8 Ireland Ï +0.5 Netherlands Ï +2.3 Poland Ï +9.3 Portugal Ï +2.4 Spain Ï +3.4 Sweden Ï +3.6 Switzerland Ï +0.7 United Kingdom Ï +2.5 CRH plc, 2004 Results, 1 March 2005 27
Slide 29: 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