Slide 1: Trading Update
Trading Update November 2022
Slide 2: Key Messages
Key Messages 9M Financial Highlights • Further growth in sales, EBITDA & margin Sales … resilient performance in an inflationary cost environment $24.4bn +13% • Strong & flexible balance sheet … $3bn invested in solutions-focused acquisitions EBITDA … ongoing share buyback; returning $1.2bn in 2022
Slide 3: Market Backdrop – North America & Europe
Market Backdrop – North America & Europe • Resilient demand despite economic uncertainty & inflationary pressures • Infrastructure underpinned by government funding • Residential new-build easing due to higher interest rates … RMI demand stable • Good demand in key Non-Residential segments … manufac
Slide 4: Americas Materials – Trading Performance
Americas Materials – Trading Performance • Good delivery amid challenging cost environment, adverse weather & strong PY comparative % Change YoY Total LFL • Strong commercial management & disciplined cost control Q3 9M Q3 9M • Backlogs ahead … supported by significant increase in Sales +19% +18% +16
Slide 5: Europe Materials – Trading Performance
Europe Materials – Trading Performance • Softer activity levels in Q3 amid challenging energy backdrop … adverse currency headwinds % Change YoY Total LFL • Strong price progression across all product categories … focus on cost discipline & margin management Q3 9M Q3 9M Sales -9% - +11% +13% • Weste
Slide 6: Building Products – Trading Performance
Building Products – Trading Performance • Continuation of structural growth trends in utility infrastructure % Change YoY & outdoor living solutions Total LFL • Good operating leverage & further margin expansion Q3 9M Q3 9M • Strong contribution from recent acquisitions Sales +36% +27% +13% +12% EBI
Slide 7: Disciplined M&A … $3.0bn
Disciplined M&A … • Acquisition of Barrette at <8x EBITDA post-synergies $1.9bn • Integrating well with good synergy delivery • Resilient RMI end-market exposure Total YTD Spend $3.0bn • 20 solutions-focused bolt-ons YTD at 8x EBITDA $1.1bn • Including Calstone, Hinkle, Rinker & Normandy … enhanced
Slide 8: Disciplined Capital Allocation
Disciplined Capital Allocation Strongest balance sheet in Group history ~1x Net Debt / EBITDA ~$3.7bn ~$3bn ~$2.1bn ~$4bn $6.3bn ~$1.5bn ~$5.2bn FY21 Cash Dividends / FY22e Acquisitions Divestments Capex Net Debt Inflow* Buybacks Net Debt *Including c.$0.4bn tax charge on Building Envelope divestmen
Slide 9: Continued Progress on Sustainability
Continued Progress on Sustainability CO2 Decarbonisation Circularity Innovation Delivering in line Low carbon mix ~$1bn invested in with existing representing >25% of innovation every 10 years decarbonisation targets concrete sales … currently involved in 60+ research projects Increasing our ambitio
Slide 10: 2022 Outlook
2022 Outlook • Fundamentals in N. America & Europe remain positive … robust Infra & Non-Res demand offsetting softer Res • Guidance confirmed … FY EBITDA to be c.$5.5bn • Strongest balance sheet in Group history … significant optionality for value creation Relentless focus on improving profits, marg
Slide 11: What We See for 2023
What We See for 2023
Slide 12: Infrastructure … Robust Outlook …
Infrastructure … Robust Outlook … ~40% of North American Sales “What markets say” “What we see” • Demand underpinned by significant increase in funding … federal & state • Positive momentum in bidding activity … contract awards & backlogs … Infrastructure solutions delivering superior profit & m
Slide 13: Residential … Slowing …
Residential … Slowing … ~30% of North American Sales “What markets say” “What we see” • Demand for large scale single-family homes softening • Multi-family & starter homes resilient … steady RMI demand … Expect near-term slowdown to be short & shallow … CRH plc, Trading Update 12
Slide 14: Non-Residential … More Resilient Than Expected …
Non-Residential … More Resilient Than Expected … ~30% of North American Sales “What markets say” “What we see” • Strong government support … ~$1tn for clean energy, utilities & semiconductors • Significant increase in manufacturing & onshoring activity … Integrated solutions delivering stronger
Slide 15: CRH Europe …
CRH Europe … “What markets say” “What we see” • C&E Europe … strong Infrastructure activity … EU funds underpinned … • Western Europe … new Res slowing; resilient RMI … Embedding sustainable solutions … • UK … demand slowing … Resilient Infra offsets Res softness … • Positive pricing in H1 202
Slide 16: What We See for 2023 …
What We See for 2023 … CRH Americas CRH Europe ~75% of EBITDA ~25% of EBITDA • Infrastructure … robust demand backdrop • CEE … better pricing to offset slower volumes • Residential … new-build slowing … in parts • W. Europe … resilient RMI activity • Non-Residential … resilient … with upside • UK …
Slide 17: Appendices
is Appendices
Slide 18: Summary Financial Performance
Summary Financial Performance YoY Total % Change YoY LFL % Change Q3’22 9M’22 Q3’22 9M’22 Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Americas Materials +19% +5% +18% +8% +16% +4% +14% +7% Building Products +36% +62% +27% +57% +13% +21% +12% +17% Europe Materials -9% -19% - -6% +11% -4% +13%
Slide 19: Materials Volumes & Prices
Materials Volumes & Prices 9M YoY % Change Americas Materials Europe Materials Volume Price Volume Price Aggregates +1% +10% -5% +12% Asphalt +6% +20% -8% +17% Cement -1% +12% -7%1 +22% RMC -4% +14% - +17% 1 Europe Materials cement volumes were +1% excluding the Philippines and Ukraine. CRH plc, Tra
Slide 20: 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”) are providing the following cautionary
Slide 21: 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 CRH plc, Trading Update 20