Slide 1: Interim Results 2011
Interim Results 2011
Slide 2: 2011 Interim Results
1 2011 Interim Results First-Half Performance Overview Finance & Development Overview Full Year Outlook CRH plc, 2011 Interim Results, 16th August 2011
Slide 3: 2011 Interim Results Highlights
2 2011 Interim Results Highlights Profit Growth Margins ahead Balance Sheet EBITDA +10% Driven by Net Debt €3.9 Bn EBIT +56% Products & Distribution €0.8Bn below June ‘10 Acquisitions Disposals Dividend €163m H1 cash spend €392m H1 proceeds Maintained at 18.5 cent €380m to mid-Aug CRH plc, 2011 Inte
Slide 4: Group – Positive Profit and Margin Development
3 Group – Positive Profit and Margin Development €m % chg H1’11 H1‘10 Sales Like-for-like growth +5% … Q1 +10%; Q2 +2% Sales +7% 8,166 7,658 EBITDA +10% 574 520 EBITDA/EBIT Europe: EBITDA +€61m; EBIT +€56m Op. profit +56% 184 118 Americas: EBITDA +$4m; EBIT +$11m EBITDA margin 7.0% 6.8% Margin Advan
Slide 5: Europe – Improved Performance
4 Europe – Improved Performance €m % chg H1’11 H1‘10 Materials: Higher input costs impacted margins Sales +13% 4,826 4,267 EBITDA +18% 403 342 Products: Profit & Margin improvements Op. profit +35% 216 160 EBITDA margin 8.4% 8.0% Distribution: Op. margin 4.5% 3.7% Benefits from Acquisitions & RMI de
Slide 6: Europe Materials – Higher Input Costs Impacted Margins
5 Europe Materials – Higher Input Costs Impacted Margins Economies % 2010 H1 2011 Cement €m % chg H1’11 H1‘10 EBITDA Volume Changes Austerity 20% EI -19% PT* -11% Sales +9% 1,337 1,223 Stable 40% CH +3% FI +16% Developing 40% PL +17% UA +9% EBITDA (2%) 149 152 IN* -3% CN* +30% * Shareholding: Portug
Slide 7: Europe Products – Profit & Margin Improvements
6 Europe Products – Profit & Margin Improvements €m % chg H1’11 H1’10 Concrete Clay Higher revenues Higher input costs Sales +1% 1,408 1,398 Restructuring benefits more than offset by Good Profit advance restructuring gains EBITDA +17% 125 107 Op. profit +50% 60 40 B. Products Disposals - H1 Impact
Slide 8: Europe Distribution – Benefits from Acqs & RMI Demand
7 Europe Distribution – Benefits from Acqs & RMI Demand €m % chg H1’11 H1’10 H1 2011 Sales Split Acquisitions - H1 Impact Benelux 35% Sales €250m Sales +26% 2,081 1,646 CH 30%; DE 20% EBITDA €15m FR/AT 15% EBIT €11m EBITDA +55% 129 83 Op. profit +79% 93 52 Builders Merchants DIY L-F-L Sales & Profit
Slide 9: Americas – Results Ahead in US$ Terms
8 Americas – Results Ahead in US$ Terms €m % chg H1’11 H1‘10 Materials: Aggs performance limited margin decline Sales (2%) 3,340 3,391 EBITDA (4%) 171 178 Products: Benefits from Restructuring Op. Loss +24% (32) (42) EBITDA margin 5.1% 5.2% Distribution: Op. margin (1.0%) (1.2%) Continued Progress C
Slide 10: Americas Materials – Aggs Performance Limited Margin Decline
9 Americas Materials – Aggs Performance Limited Margin Decline H1 Volumes Avg Unit Var. €m % chg H1’11 H1‘10 Total Heritage Price Cost Aggs +11% +5% -2% -2% Sales flat 1,546 1,545 Asphalt +4% +3% +3% +4% RMC +13% +6% -2% +3% EBITDA (21%) 59 75 Aggregates Asphalt Op. loss (16%) (73) (63) Good H1 volu
Slide 11: Americas Products – Benefits from Restructuring
10 Americas Products – Benefits from Restructuring €m % chg H1’11 H1’10 Building Products Building Envelope Sales (7%) 1,208 1,300 Profits ahead – acqs & Profits ahead with reorganisation benefits restructuring benefits EBITDA +9% 97 89 Op. profit +89% 36 19 Disposals - H1 Impact EBITDA margin 8.0%
Slide 12: Americas Distribution – Continued Progress
11 Americas Distribution – Continued Progress €m % chg H1’11 H1’10 Exterior Products Interior Products Profits similar Profits ahead Sales +7% 586 546 Lower margin H1 Sales Good recovery in mix CA, TX, NC EBITDA +7% 15 14 Op. profit +150% 5 2 Overall US$ Sales +13% EBITDA margin 2.6% 2.6% EBITDA mar
Slide 13: Group EBITDA Margin Ahead
12 Group EBITDA Margin Ahead EBITDA % H1’11 H1’10 Product Balance Delivered Margin Progress Europe Products 8.9% 7.7% Europe Distribution 6.2% 5.0% Europe P&D Positive RMI trends/Restructuring benefits Americas Products 8.0% 6.8% Americas Distribution 2.6% 2.6% Americas P&D Products reorganisation b
Slide 14: 2011 Interim Results
13 2011 Interim Results First-Half Performance Overview Finance & Development Overview Full Year Outlook CRH plc, 2011 Interim Results, 16th August 2011
Slide 15: Group Overall – Earnings Up; Dividend Maintained
14 Group Overall – Earnings Up; Dividend Maintained €m % chg H1’11 H1‘10 Profit on Disposals 19 13 Net Finance Costs (120) (129) Share of Associates’ PAT 12 23 Trialis disposal Profit Before Tax +280% 95 25 Well ahead EPS (cent) +312% 10.7 2.6 Estimated 18% tax rate DPS (cent) 18.5 18.5 Maintained C
Slide 16: €380m Development Spend YTD mid-August
15 €380m Development Spend YTD mid-August H1 2011 YTD Aug-2011 Europe €29m €211m Americas €134m €169m Total €163m €380m H1 2011 12 bolt-ons to our Materials platforms 9 bolt-ons across our Products and Distributions businesses Since end-June VVM in Belgium (2 cement mills & 2 RMC plants) – com
Slide 17: Strong Financial Profile
16 Strong Financial Profile Gross Debt €5.0 Bn New 5-yr €1.5Bn bank facility Gross Cash (€1.1 Bn) 13 major international banks Net Debt €3.9 Bn Net Debt/EBITDA 2.4x July 2016 maturity EBITDA/Net Interest 7.0x Replaced €0.6Bn short-term facilities Cash/Undrawn facilities* €3.0 Bn * Actual Cas
Slide 18: Balanced Debt Maturity Profile
17 Balanced Debt Maturity Profile € Bn June 2011 (incl. JVs) 1.5 1.0 0.5 0.0 CRH plc, 2011 Interim Results, 16th August 2011
Slide 19: CRH Debt Metrics Amongst Best in Sector
18 CRH Debt Metrics Amongst Best in Sector End June Net Debt / LTM EBITDA 10x Europe Peers Americas Peers 8x 8.8x 6x 7.0x 4x 4.4x 3.6x 2x 3.0x 2.4x 1.8x 0x BBB BBB+ BBB+ BB BB+ B BB CRH CRH plc, 2011 Interim Results, 16th August 2011 Source: Bloomberg Data; S&P Ratings
Slide 20: 2011 Interim Results
19 2011 Interim Results First-Half Performance Overview Finance & Development Overview Full Year Outlook CRH plc, 2011 Interim Results, 16th August 2011
Slide 21: 2011 Outlook
20 2011 Outlook Positive H1 Outcome H2 Backdrop Profits and margins ahead Downward economic growth revisions Advantages of balance & financial market turbulence Restructuring benefits adding to market risks & uncertainties CRH Focus on … Operational / commercial excellence, achieving price improveme
Slide 22: CRH Strengths
21 CRH Strengths Proven Business Model Balance Sheet Disciplined approach One of to long-term value creation the sector’s strongest Dividend Delivery Acquisition Capability Unique Substantial capacity sector record for appropriate opportunities CRH plc, 2011 Interim Results, 16th August 2011
Slide 23: Supplementary Information
22 S UPPLEMENTARY I NFORMATION CRH plc, 2011 Interim Results, 16th August 2011
Slide 24: CRH Group – Components of Performance
23 CRH Group – Components of Performance € million Operating Profit on Finance Associates Sales EBITDA Profit Disposals Costs PAT PBT H1 2010 7,658 520 118 13 (129) 23 25 Exchange (91) - 9 (1) 5 - 13 2010/2011 Acquisitions 389 33 19 - (4) - 15 2010/2011 Divestments (174) (4) 4 9 2 - 15 Restructuring
Slide 25: Europe Materials – Components of Performance
24 Europe Materials – Components of Performance Analysis of Change €m % Chg H1 ‘11 H1 ‘10 Change Organic Acquisitions Divestments Restructuring Exchange Sales +9% 1,337 1,223 +114 +70 +50 (22) - +16 EBITDA (2%) 149 152 (3) (17) +6 (1) +4 +5 Op.Profit* (7%) 63 68 (5) (15) +3 - +4 +3 EBITDA Margin 11.
Slide 26: Europe Products – Components of Performance
25 Europe Products – Components of Performance Analysis of Change €m % Chg H1 ‘11 H1 ‘10 Change Organic Acquisitions Divestments Restructuring Exchange Sales +1% 1,408 1,398 +10 +112 +7 (115) - +6 EBITDA +17% 125 107 +18 +20 +1 (7) +3 +1 Op.Profit* +50% 60 40 +20 +20 - (3) +3 - EBITDA Margin 8.9% 7.
Slide 27: Europe Distribution – Components of Performance
26 Europe Distribution – Components of Performance Analysis of Change €m % Chg H1 ‘11 H1 ‘10 Change Organic Acquisitions Divestments Restructuring Exchange Sales +26% 2,081 1,646 +435 +119 +250 - - +66 EBITDA +55% 129 83 +46 +21 +15 - +8 +2 Op.Profit* +79% 93 52 +41 +20 +11 - +8 +2 EBITDA Margin 6.2
Slide 28: Americas Materials – Components of Performance
27 Americas Materials – Components of Performance Analysis of Change €m % Chg H1 ‘11 H1 ‘10 Change Organic Acquisitions Divestments Restructuring Exchange Sales Flat 1,546 1,545 +1 +29 +57 - - (85) EBITDA (21%) 59 75 (16) (15) +6 - (3) (4) Op.Loss* (16%) (73) (63) (10) (12) +1 - (3) +4 EBITDA Margin
Slide 29: Americas Products – Components of Performance
28 Americas Products – Components of Performance Analysis of Change €m % Chg H1 ‘11 H1 ‘10 Change Organic Acquisitions Divestments Restructuring Exchange Sales (7%) 1,208 1,300 (92) (13) +22 (37) - (64) EBITDA +9% 97 89 +8 (1) +5 +4 +3 (3) Op.Profit* +89% 36 19 +17 +3 +4 +7 +3 - EBITDA Margin 8.0% 6
Slide 30: Americas Distribution – Components of Performance
29 Americas Distribution – Components of Performance Analysis of Change €m % Chg H1 ‘11 H1 ‘10 Change Organic Acquisitions Divestments Restructuring Exchange Sales +7% 586 546 +40 +67 +3 - - (30) EBITDA +7% 15 14 +1 +2 - - - (1) Op.Profit* +150% 5 2 +3 +3 - - - - EBITDA Margin 2.6% 2.6% Op.Profit Ma
Slide 31: H1 2011 Operating Cash Outflow
30 H1 2011 Operating Cash Outflow H1 2011 H1 2010 Inflows (€m) Profit before tax 95 25 Depreciation/Amortisation 390 402 485 427 Outflow (€m) Working capital (706) (503) Dividends (pre-Scrip) (312) (307) Capital expenditure (294) (219) Tax / Other (151) (51) (1,463) (1,080) Operating cash outflow (€
Slide 32: Net Debt Level Well Below June 2010
31 Net Debt Level Well Below June 2010 H1 2011 H1 2010 Operating cash outflow (€ m) (978) (653) Acquisitions and investments (163) (159) Disposals 392 55 Share issues (net) 111 170 Translation 169 (452) Debt (increase) (469) (1,039) Opening Net Debt (3,473) (3,723) Period end Net Debt (3,942) (4,762
Slide 33: Analysis by Segment
32 Analysis by Segment Sales Revenue (€ m) H1 ‘11 H1 ‘10 % chg EBITDA Profit (€m) H1 ‘11 H1 ‘10 % chg Europe Materials 1,337 1,223 +9% Europe Materials 149 152 (2%) Europe Products 1,408 1,398 +1% Europe Products 125 107 +17% Europe Distribution 2,081 1,646 +26% Europe Distribution 129 83 +55% Ameri
Slide 34: Analysis by Segment
33 Analysis by Segment Operating Profit (€m) H1 ‘11 H1 ‘10 % chg Profit on Disposal (€m) H1 ‘11 H1 ‘10 Europe Materials 63 68 (7%) Europe Materials - 2 Europe Products 60 40 +50% Europe Products 12 - Europe Distribution 93 52 +79% Europe Distribution 1 6 Americas Materials (73) (63) (16%) Americas M
Slide 35: Euroconstruct Forecasts – June 2011
34 Euroconstruct Forecasts – June 2011 Construction Output 2011 % change Construction Output 2011 % change Belgium +1.8% Poland +12.8% Denmark +2.7% Portugal (6.3%) Finland +4.0% Spain (15.0%) France +2.7% Switzerland +0.8% Germany +1.7% United Kingdom (2.2%) Ireland (15.0%) We
Slide 36: PCA Forecasts (United States) – July 2011
35 PCA Forecasts (United States) – July 2011 GDP 2.4% Construction Put-in-Place % change Total Construction Put-in-Place (4.9%) Industrial (25.0%) Cement Consumption 0.2% Office (10.7%) Hotels, Motels (26.6%) Construction Put-in-Place % change Total Non-residential (14.4%) New Housing
Slide 37: Contact Us
36 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 This presentation contains certain forward-looking statements as defined under US legislation. By their Website: www.crh.com nature, such statements in