Slide 1: Liam O’Mahony, Chief Executive; Myles Lee, Finance Director
Liam O’Mahony Chief Executive Myles Lee Finance Director
Slide 2: Contents
Contents H1 2007 Highlights 2 H1 2007 Acquisitions 5 Segmental Review 6 Finance 15 Outlook 22 Supplementary Information 27 CRH plc, 2007 Interim Results, 1 28th August 2007
Slide 3: H1 2007 Highlights
H1 2007 Highlights Record outcome; Continued delivery from balanced portfolio Revenue up 21%, EBITDA up 23%, EBIT up 26% Profit on disposals €22m (2006: €17m, 2005: €10m) 27% increase in PBT, EPS up 26%, Dividend up 48% €1.5 billion investment (acqs & capex) which underpins future growth R
Slide 4: H1 2007 Highlights
H1 2007 Highlights Continuing long-term performance and growth 2007 EBITDA*: €1.14 Bn; up 23% H1 2006 EBITDA* (€ Bn) 2005 Margin*: 11.8% vs 11.5% 2004 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2007 Op.Profit*: €0.77 Bn; up 26% H1 2006 Op.Profit* (€ Bn) 2005 Margin*: 8.0% vs 7.6% 2004 0.0 0.2 0.4 0.6 0.8 1
Slide 5: H1 2007 Highlights
H1 2007 Highlights Continuing long-term shareholder return 2007 H1 EPS: 92.8c; up 26% H1 2006 EPS (cent) 2005 Full year ‘06: up 20% 2004 0 20 40 60 80 100 2007 H1 DPS: 20.0c; up 48% H1 2006 Dividend (cent) 2005 Continuing payout increase 2004 0 5 10 15 20 25 CRH plc, 2007 Interim Results, 4
Slide 6: H1 2007 Acquisitions
H1 2007 Acquisitions €1Bn spend maintaining strong development record Spend split 55% Europe; 25% Americas; 20% Emerging Regions Including 4 important transactions at a combined cost of €0.7Bn: ¾ Materials – First cement investments in Turkey and China ¾ Products – Vistawall, US Glass group expa
Slide 7: Europe Materials
Europe Materials Significant organic profit and margin improvements H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +26% 1,686 1,334 +352 +307 +21 +27 -3 Op. profit* +46% 222 152 +70 +59 +5 +6 - Op. margin* 13.2% 11.4% *Excludes profit on disposal Continuing positive demand/pricing
Slide 8: Europe Products
Europe Products Marked uplift in operating profit and margin H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +23% 1,826 1,486 +340 +122 +185 +28 +5 Op. profit* +61% 180 112 +68 +44 +21 +3 - Op. margin* 9.9% 7.5% *Excludes profit on disposal H1 organic growth ahead of that for full y
Slide 9: Europe Distribution
Europe Distribution Continuing organic performance improvement, plus acquisitions H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +18% 1,559 1,319 +240 +83 +25 +140 -8 Op. profit* +41% 93 66 +27 +17 +1 +9 - Op. margin* 6.0% 5.0% *Excludes profit on disposal Good organic sales growth
Slide 10: Europe - Overall
Europe - Overall Operating profit up 50%; mainly organic H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +23% 5,071 4,139 +932 +512 +231 +195 -6 Op. profit* +50% 495 330 +165 +120 +27 +18 - Op. margin* 9.8% 8.0% *Excludes profit on disposal Positive volume & pricing trends delivered
Slide 11: Americas Materials
Americas Materials Robust heritage performance & excellent APAC contribution H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +57% 2,181 1,393 +788 +93 +791 +8 -104 Op. profit* +89% 66 35 +31 +2 +31 +1 -3 Op. margin* 3.0% 2.5% *Excludes profit on disposal Severe weather in contrast t
Slide 12: Americas Products
Americas Products Operating profit broadly maintained in US$ terms H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales -1% 1,796 1,813 -17 -109 +222 +6 -136 Op. profit* -11% 180 202 -22 -7 - - -15 Op. margin* 10.0% 11.1% *Excludes profit on disposal Impact of housing downturn on APG mit
Slide 13: Americas Distribution
Americas Distribution Acquisition benefits more than offset by organic decline H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales -5% 650 683 -33 -107 +122 +3 -51 Op. profit* -35% 30 46 -16 -24 +11 - -3 Op. margin* 4.6% 6.8% *Excludes profit on disposal Approximately 40% of organic pro
Slide 14: Americas - Overall
Americas - Overall Performance underpinned by product and end-use balance H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales +19% 4,627 3,889 +738 -123 +1,135 +17 -291 Op. profit* -2% 276 283 -7 -29 +42 +1 -21 Op. margin* 6.0% 7.3% *Excludes profit on disposal Materials and Products or
Slide 15: Finance
Finance CRH plc, 2007 Interim Results, 14 28th August 2007
Slide 16: H1 2007 Components of Growth
H1 2007 Components of Growth Over half of EBIT growth generated by ongoing ops H1 Acquisitions €m 2007 2006 Change Organic 2006 2007 FX Sales 9,698 8,028 +1,670 +389 +1,366 +212 (297) Operating Profit 771 613 +158 +91 +69 +19 (21) Profit on disposals 22 17 +5 +5 - - - Trading Profit 793 630 +163 +96
Slide 17: H1 Operating Profit Margins
H1 Operating Profit Margins Excellent European advance, robust US delivery 2007 2006 Europe Materials 13.2% 11.4% Europe Products 9.9% 7.5% Europe Distribution 6.0% 5.0% Europe +1.8% 9.8% 8.0% Americas Materials 3.0% 2.5% Americas Products 10.0% 11.1% Americas Distribution 4.6% 6.8% Americas -1.3% 6
Slide 18: H1 2007 Funds Flow
H1 2007 Funds Flow Outflow reflects traditional H1 working capital build up … 2007 2006 Inflows €m €m Profit before tax 670 526 Depreciation 354 300 Amortisation of intangibles 16 12 Disposals 62 60 1,102 898 Outflows Working capital (329) (474) Tax paid (103) (61) Dividends (208) (149) Capital expe
Slide 19: H1 2007 Funds Flow
H1 2007 Funds Flow … yet H1 debt increase less than net investment spend 2007 2006 €m €m Operating cash outflow (79) (238) Non-Operating Acquisitions and investments (983) (901) Share issues 78 70 Purchase of Shares (31) (15) Translation 57 137 (879) (709) Debt increase (958) (947) Acqs, Capex less
Slide 20: Key Financial Ratios
Key Financial Ratios Substantial capacity to pursue further opportunities H1 H1 Y/E 2007 2006 2006 Debt incl JVs (€Bn) 5.5 4.4 4.5 Total Equity (€Bn) 7.6 6.4 7.1 Debt/Total Equity 72% 69% 63% Debt/Market Capitalisation 27% 32% 26% Interest cover (times)* EBITDA/Net Interest 9.2 11.2 9.7 EBIT/Net Int
Slide 21: Dividend Strategy
Dividend Strategy Higher payout & earnings momentum driving dividend growth 2005 dividend cover 4.8x; 2006 4.3x; target of c.3.5x for 2008 2006 Interim 13.5c up 20%; Final 38.5c up 39%; Total 52.0c up 33% 2007 Interim 20.0c up 48% to broadly re-establish Interim/Final split 2007 will see ano
Slide 22: Outlook
Outlook CRH plc, 2007 Interim Results, 21 28th August 2007
Slide 23: 2007 Europe Outlook
2007 Europe Outlook Continued organic growth & contributions from acquisitions Materials ¾ Overall trading outlook remains very positive ¾ Further strong progress expected in H2 Products ¾ Strong H1 impetus from favourable weather / growth in key markets ¾ Continued H2 growth expected but at a m
Slide 24: 2007 Americas Outlook
2007 Americas Outlook Balance and acquisitions to deliver higher US$ profits Materials ¾ Continuing benefits from price improvements / cost reductions ¾ Expect strong H2 organic performance plus further APAC benefits Products ¾ Financial market disruption has added to Residential uncertainty ¾ H
Slide 25: Overall 2007 Outlook
Overall 2007 Outlook Strong overall trading performance & development activity Geographic, sectoral and product balance continues to deliver Ongoing focus on price / cost effectiveness driving organic performance Benefits from record 2006 acquisition spend and … … Sustained development empha
Slide 26: Going Forward
Going Forward Continuation of our clear consistent strategic vision… be a responsible international leader in building materials delivering superior performance and growth CRH plc, 2007 Interim Results, 25 28th August 2007
Slide 27: Supplementary Information
Supplementary Information CRH plc, 2007 Interim Results, 26 28th August 2007
Slide 28: Analysis by Segment
Analysis by Segment H1 H1 % €m 2007 2006 change Sales Europe Materials 1,686 1,334 +26% Europe Products 1,826 1,486 +23% Europe Distribution 1,559 1,319 +18% Americas Materials 2,181 1,393 +57% Americas Products 1,796 1,813 -1% Americas Distribution 650 683 -5% Total 9,698 8,028 +21% Operating Profi
Slide 29: Analysis by Region
Analysis by Region H1 H1 % €m 2007 2006 change Sales Ireland 695 571 +22% Benelux 1,444 1,269 +14% Rest of Europe 2,933 2,293 +28% Americas 4,626 3,895 +19% Total 9,698 8,028 +21% Operating Profit Ireland 73 72 +1% Benelux 136 110 +24% Rest of Europe 286 148 +93% Americas 276 283 -2% Total 771 613 +
Slide 30: Profit on Disposal
Profit on Disposal €m H1 H1 Analysis by Segment 2007 2006 Europe Materials 12 9 Europe Products 2 - Europe Distribution - 2 Americas Materials 7 5 Americas Products - 1 Americas Distribution 1 - Total 22 17 Analysis by Region Ireland 11 7 Benelux 3 - Rest of Europe - 4 Americas 8 6 Total 22 17 CRH p
Slide 31: Foreign Currency Rates
Foreign Currency Rates Average Period ended Six months ended Year ended Six months ended Year ended euro 1= 2007 2006 2006 2007 2006 2006 US Dollar 1.3291 1.2296 1.2556 1.3505 1.2713 1.3170 Pound Sterling 0.6746 0.6870 0.6817 0.6740 0.6921 0.6715 Polish Zloty 3.8441 3.8901 3.8959 3.7677 4.0546 3.831
Slide 32: Euroconstruct Forecasts
Euroconstruct Forecasts Construction output 2007 (Euroconstruct June 2007) % Belgium Ï +1.0 Denmark Ð (0.1) Finland Ï +3.6 France Ï +1.0 Germany Ï +2.6 Ireland Ð (2.1) Italy Ï +0.1 Netherlands Ï +5.3 Poland Ï +10.6 Portugal Ð (3.9) Spain Ï +4.5 Sweden Ï +8.9 Switzerland Ï +1.2 United Kingdom Ï +1.9
Slide 33: 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