Slide 1: 2022 Results
Eo) 2022 Results
Slide 2: Agenda
Agenda Market Backdrop & Trading Performance Financial Performance & Capital Allocation Sustainability Update Accelerating Integrated Solutions Listing Considerations & Outlook Full Year Results 2022 1
Slide 3: Key Messages
Key Messages Financial Delivery Strategy Update • Strong performance … further growth • $3.3bn invested in solutions-focused in sales, EBITDA, EPS, cash & returns acquisitions … strong pipeline of opportunities • Margin expansion despite significant cost • New organisational structure … facilitating
Slide 4: 2022 Financial Highlights
2022 Financial Highlights Sales EPS $32.7bn +12% $3.50 +14% EBITDA Cash Flow $5.6bn +13% $4.4bn +4% Margin Returns 17.2% +10bps 13.3% +100bps Full Year Results 2022 3
Slide 5: Market Backdrop & Trading Performance
Market Backdrop & Trading Performance
Slide 6: Market Backdrop – North America
Market Backdrop – North America ~75% of Group EBITDA • US Infrastructure robust ... federal funding underpinned; state budgets strong • New-build single-family Residential softer … but strong multi-family & resilient RMI • Good demand in key Non-Residential segments … manufacturing, utilities & ener
Slide 7: Americas Materials – Trading Performance
Americas Materials – Trading Performance • Further profit growth despite cost headwinds & adverse weather % Change • Successful delivery of end-to-end solutions offering $m Total LFL • Strong commercial discipline & cost control Sales 14,324 +15% +12% • Backlogs ahead … positive momentum in EBITDA 2
Slide 8: Building Products – Trading Performance
Building Products – Trading Performance • Integrated solutions continues to drive performance • Significant portfolio activity … … reshaping & repositioning into higher growth opportunities % Change … outdoor living & critical utility infrastructure $m Total LFL • Breadth of products & services cont
Slide 9: Market Backdrop – Europe
Market Backdrop – Europe ~25% of Group EBITDA • Infrastructure demand underpinned by government & EU funding • New-build Residential activity softer … but RMI resilient • Good demand in Non-Residential segments • Positive pricing momentum Full Year Results 2022 8
Slide 10: Europe Materials – Trading Performance
Europe Materials – Trading Performance • Good performance despite challenging energy cost environment % Change • Resilient activity levels in Central & Eastern Europe $m Total LFL • Significant currency headwinds Sales 10,576 - +11% • 5th consecutive year of positive pricing EBITDA 1,357 -4% +8% Ful
Slide 11: Financial Performance & Capital Allocation
Financial Performance & Capital Allocation
Slide 12: Strong Organic Delivery …
Strong Organic Delivery … (168) 385 408 $5,615m +8% LFL $4,990m EBITDA FY21 Organic Acquisitions / Currency FY22 EBITDA (Divestments) Translation EBITDA Full Year Results 2022 11
Slide 13: Strongest Balance Sheet in Group History …
Strongest Balance Sheet in Group History … 0.9x Net Debt / EBITDA $4.4bn $2.1bn $3.3bn $3.7bn $6.3bn $5.1bn $1.5bn FY21 Cash Divestments* / Dividends / FY22 Acquisitions Capex Net Debt Inflow Other Buybacks Net Debt *Net of $0.4bn one-off tax charge on the profit on divestment of the Building Envelo
Slide 14: Progressive, Disciplined Capital Allocation
Progressive, Disciplined Capital Allocation $4bn Dividends $12bn $10bn $8bn Growth M&A $20bn+ Shareholder Investments Last 5 years Returns $4bn Buybacks $2bn Exp. Capex … expect ~$30bn+ financial capacity in the next 5 years Full Year Results 2022 13
Slide 15: Increasing Share Buybacks …
Increasing Share Buybacks … Strong history of cash returns … … value creation to continue • An embedded part of our capital allocation • ~$30bn+ financial capacity in the next 5 years strategy • Demonstrating confidence in outlook • $4.1bn buybacks last 5 years & continuing strong cash generation …
Slide 16: Sustainability Update
Sustainability Update
Slide 17: Leading the Way in Carbon Reduction
Leading the Way in Carbon Reduction • Raising our ambition & accelerating efforts with new carbon reduction target -30% • Now targeting 30% reduction in absolute carbon emissions by 2030 reduction in carbon • Targets validated by SBTi to be in line with the emissions by 2030 updated 1.5°C framework
Slide 18: Delivering a More Circular Built Environment
Delivering a More Circular Built Environment Advancing circularity for environmental, financial & societal benefits Circularity in 2022 42mt recycled materials Preserving scarce natural resources #1 recycler – of any material – in the US & prolonging the life of reserves World #1 in asphalt recyclin
Slide 19: Accelerating Integrated Solutions
Accelerating Integrated Solutions
Slide 20: Why Solutions?
Why Solutions? • The world around us is changing … 2 billion more people by 2050 with 70% urbanisation • Significant backlog of aging infrastructure • We cannot continue producing harmful emissions & consuming scarce resources at our current pace … society & regulators are demanding action • Busines
Slide 21: How Do Solutions Work?
How Do Solutions Work? • Integrating planning, design, manufacturing & delivery of essential materials, products & services • Customers, designers, engineers & manufacturers working together in partnership Integrating capabilities … … to develop solutions which are … Materials science More susta
Slide 22: How Are Solutions Going to Evolve?
How Are Solutions Going to Evolve? • Greater collaboration & stronger partnerships along the value chain Manufacturers with Accelerating innovative solutions comprehensive Promoting more sustainable delivery of construction projects knowledge Ever-increasing circularity & capabilities across
Slide 23: Why CRH?
Why CRH? Differentiated strategy with unmatched experience of materials, products & services Industry leader in sustainability, recycling and innovation #1 in the most innovative & regulated construction markets in the world … US & Europe Proven leader in delivering end-to-end integrated sol
Slide 24: Industry-Leading Financial Performance
Industry-Leading Financial Performance EBITDA Growth Margin Performance Operating Cash (% Change 2017 - 2022) (2017 - 2022) (% Change 2017 - 2022) +62% +78% +550 +49% bps +33% +45% +33% -50 -90 -70 +11% +16% bps bps bps Global US Peers Peer Avg. CRH Global US Peers Peer Avg. CRH Peers Peers Global U
Slide 25: We Leverage the Unique Capabilities of CRH …
We Leverage the Unique Capabilities of CRH … North Europe ~25% ~75% EBITDA EBITDA Innovation America Sustainability Talent & Expertise Synergy delivery Innovations from Europe … to end-to-end The most regulated construction market … solutions of scale in N. America Exacting specifications Growth p
Slide 26: Positioning CRH for the Next Decade of Growth …
Positioning CRH for the Next Decade of Growth … Essential Materials Outdoor Living Solutions Combining materials, products & value-added services … Planning Repairing Innovation Designing Logistics Engineering Maintaining Technology Manufacturing Recycling … end-to-end & inter-connected Road Solutio
Slide 27: A Natural Evolution of our Integrated Solutions Strategy …
A Natural Evolution of our Integrated Solutions Strategy … … aligning our business with the future growth of our industry Americas Materials Building Products Europe Materials $14.3bn sales (44% of Group) $7.8bn sales (24% of Group) $10.6bn sales (32% of Group) New organisational structure (effectiv
Slide 28: Listing Considerations
sn || Ee ® a ; Listing Considerations
Slide 29: Transition to a US Primary Listing
Transition to a US Primary Listing … the natural listing location for our business Background & context Key rationale Recommendation • Active reshaping & • Significant commercial & • Move primary listing to repositioning of CRH operational benefits … the US, together with US over the last decade ind
Slide 30: Outlook
7 y ea / / / i, f || 1 | = = Sateen = —— — = rr cee Outlook
Slide 31: North America
North America … favourable demand backdrop; pricing positive • Infrastructure – Robust demand underpinned by significant increases in federal highway funding (~50% higher in next 5 years) • Non-Residential – Key segments supported by government investment & onshoring of critical manufacturing • Resi
Slide 32: Europe
Europe … softer activity levels offset by positive pricing • C&E Europe – Infrastructure supported by EU funds … CRH #1 in materials, products & services … construction market ~70% the size of the US … significant growth opportunities ahead • W. Europe – Resilient Infrastructure & RMI … increasing d
Slide 33: Well Positioned for 2023 & Beyond …
Well Positioned for 2023 & Beyond … • Clear growth strategy delivering superior performance … integrated solutions a key differentiator • Best-in-class operators focused on growing profits, margins, returns & cash • Leading on sustainability … decarbonisation, circularity, innovation … uniquely posi
Slide 34: Appendix – Accelerating Integrated Solutions
Appendix – Accelerating Integrated Solutions
Slide 35: New Organisational Structure (Effective 1 Jan 2023)
New Organisational Structure (Effective 1 Jan 2023) Americas Europe FY22 Sales EBITDA Sales EBITDA Materials Solutions 14,324 2,748 9,349 1,246 Essential Materials 4,160 4,625 Road Solutions 10,164 4,724 Building Solutions 6,188 1,255 2,862 366 Building & Infrastructure Solutions 2,379 2,252 Outdoor
Slide 36: Essential Materials …
Essential Materials … • Leading provider of essential building materials … aggregates & cement • Finite, valuable & difficult to replace … #1 aggregates reserves in North America … regional #1 in Europe • High margin & heavily integrated into downstream solutions businesses • Unique network of asset
Slide 37: Road Solutions …
Road Solutions … • Fully integrated offering across the project lifecycle … design, manufacture, install, maintain & recycle • Significant investment needs … publicly funded & resilient • #1 in sustainable road solutions … leading on innovation & circularity • Maximising value through the supply cha
Slide 38: Building & Infrastructure Solutions …
Building & Infrastructure Solutions … • Leading provider of critical utility infrastructure & commercial solutions … fully integrated with essential materials … closely connected to road solutions • Highly engineered, specified & innovative solutions for complex construction projects … addressing th
Slide 39: Outdoor Living Solutions …
Outdoor Living Solutions … • Owning the backyard with innovative & bespoke sustainable solutions • Complete customer solution … materials, products & supply-chain … digital design services, technology & logistics … fully integrated with essential materials business • Strong growth track record … RMI
Slide 40: Appendix – 2022 Financials
Appendix – 2022 Financials
Slide 41: 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 2021 29,206 4,990 3,331 116 (399) 55 3,103 Exchange effects (1,359) (168) (82) (2) 19 (3) (68) 2021 at 2022 rates 27,847 4,822 3,249 114 (380) 52
Slide 42: Americas Materials
Americas Materials Analysis of change $ million 2021 Exchange Acquisitions Divestments Organic 2022 % Change Sales revenue 12,407 (41) 511 (60) 1,507 14,324 +15% EBITDA 2,588 (4) 44 (13) 133 2,748 +6% Operating profit 1,788 (2) (11) (11) 145 1,909 +7% EBITDA/sales 20.9% 19.2% Operating profit/sales
Slide 43: Europe Materials
Europe Materials Analysis of change $ million 2021 Exchange Acquisitions Divestments Organic 2022 % Change Sales revenue 10,581 (1,151) 107 (44) 1,083 10,576 - EBITDA 1,410 (157) 8 (4) 100 1,357 (4%) Operating profit 814 (79) 1 (2) 90 824 1% EBITDA/sales 13.3% 12.8% Operating profit/sales 7.7% 7.8%
Slide 44: Building Products (Continuing Operations)
Building Products (Continuing Operations) Analysis of change $ million 2021 Exchange Acquisitions Divestments Organic 2022 % Change Sales revenue 6,218 (167) 1,121 (4) 655 7,823 +26% EBITDA 992 (7) 350 - 175 1,510 +52% Operating profit 729 (1) 285 - 148 1,161 +59% EBITDA/sales 16.0% 19.3% Operating
Slide 45: Summary Financial Performance
Summary Financial Performance YoY Total Change YoY LFL Change Sales EBITDA Sales EBITDA Americas Materials +15% +6% +12% +5% Europe Materials - -4% +11% +8% Building Products +26% +52% +11% +18% Group +12% +13% +12% +8% Full Year Results 2022 44
Slide 46: Materials Volumes & Prices
Materials Volumes & Prices Americas Materials Europe Materials YoY % Change Volumes Price Volumes Price Aggregates -1% +10% -7% +13% Asphalt +3% +20% -9% +20% Cement -3% +12% -9%1 +24% RMC -6% +14% -4% +18% 1 Europe Materials cement volumes were -2% excluding the Philippines & Ukraine. Full Year Res
Slide 47: 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 48: 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 2022 47