CRH PLC · NYSE:CRH
CRH — FY2002 Earnings Presentation
27 slides from CRH's earnings presentation, Mar 4, 2003
Slide 1: 2002 Year-end Results, 4th March 2003
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Slide 2: Contents
CONTENTS 2002 Highlights 3 2002 Overview 4 Republic of Ireland 5 Britain & Northern Ireland 6 Mainland Europe – Materials 7 Mainland Europe – P & D 8 Americas – Materials 9 2002 Year-end Results, 4th March 2003 Americas – P & D 10 US Distribution Asbestos claims 11 2002 Acquisitions and investments
Slide 3: 2002 Highlights
2002 HIGHLIGHTS 2002 2001 €m €m Change Sales 10,794 10,444 + 3% 2002 Year-end Results, 4th March 2003 Operating profit before goodwill 1,048 1,020 + 3% Profit before tax 856 803 + 7% € cent € cent EPS before goodwill 132.54 127.32 + 4% EPS after goodwill 119.22 115.32 + 3% Cash EPS 219.82 213.73 + 3
Slide 4: 2002 Overview
2002 OVERVIEW z Record earnings, merits of balance again evident in a challenging environment z Ireland: full year construction activity down c.4%, following recovery in H2 z UK: Ibstock margins impacted by higher energy costs, Northern Ireland lower 2002 Year-end Results, 4th March 2003 z Mainland
Slide 5: Republic of Ireland
REPUBLIC OF IRELAND Analysis of change Margins €m 2002 2001 FX Acq '01 Acq '02 Organic 2002 2001 Sales +1% 714 704 +10 - +1 - +9 Op profit * - 2% 131 134 -3 - - - -3 18.3% 19.0% * excluding goodwill amortisation €0.3m (2001: €0.2m) and profit on disposal €7.8m (2001: €16.5m) 2002 Year-end Results, 4
Slide 6: Britain & Northern Ireland
BRITAIN & NORTHERN IRELAND Analysis of change Margins €m 2002 2001 FX Acq '01 Acq '02 Organic 2002 2001 Sales +3% 699 680 +19 -8 +8 +5 +14 Op profit * - 10% 56 62 -6 -1 +1 +1 -7 8.0% 9.1% * excluding goodwill amortisation €5.4m (2001: €5.2m) and profit on disposal €2.8m (2001: €4.9m) 2002 Year-end R
Slide 7: Mainland Europe - Materials
MAINLAND EUROPE - MATERIALS Analysis of change Acq Acq Reorg. Margins €m 2002 2001 FX '01 '02 Costs Organic 2002 2001 Sales +6% 967 908 +59 - 13 +50 +14 - +8 Op profit * - 1% 126 127 -1 -2 +8 +1 -7 -1 13.0% 14.0% * excluding goodwill amortisation €19.8m (2001: €18.9m) and profit on disposal €3.5m (2
Slide 8: Mainland Europe - P & D
MAINLAND EUROPE - P & D Analysis of change Acq Acq Ops Reorg. Margins €m 2002 2001 FX '01 '02 Sold Costs Organic 2002 2001 Sales +18% 2,053 1,744 +309 +4 +136 +257 -45 - -43 Op profit * +65% 107 65 +42 - +12 +24 - +3 +3 5.2% 3.7% * excluding goodwill amortisation €8.8m (2001: €6.3m) and loss on disp
Slide 9: Americas - Materials
AMERICAS - MATERIALS Analysis of change Margins €m 2002 2001 FX Acq '01 Acq '02 Organic 2002 2001 Sales - 3% 3,072 3,168 - 96 - 167 +100 +241 - 270 Op profit * - 3% 336 346 - 10 - 18 +1 +40 - 33 10.9% 10.9% * excluding goodwill amortisation €19.8m (2001: €17.0m) and profit on disposal €3.3m (2001: €
Slide 10: Americas - P & D
AMERICAS - P & D Analysis of change Margins €m 2002 2001 FX Acq '01 Acq '02 Organic 2002 2001 Sales +2% 3,289 3,240 +49 - 206 +141 +161 - 47 Op profit * +2% 292 286 +6 - 17 +12 +14 -3 8.9% 8.8% * excluding goodwill amortisation €15.5m (2001: €13.0m) and loss on disposal €1.5m (2001: loss €2.1m) 2002
Slide 11: US Distribution Asbestos Claims
US DISTRIBUTION ASBESTOS CLAIMS z 251 claimants announced 30th September 2002 z Only 8 new claimants notified in last five months z 8 claims disposed of since September for $5,800 gross 2002 Year-end Results, 4th March 2003 z 251 claimants outstanding at end February 2003 z All claims involve multip
Slide 12: 2002 Acquisitions and Investments of €1bn
2002 ACQUISITIONS AND INVESTMENTS OF €1BN z Europe Materials € 32m: Î Continuation of reserves expansion in Ireland Î Modest bolt-on deals in Finland, Poland and Switzerland z Europe P&D € 242m: 2002 Year-end Results, 4th March 2003 Î EHL Group, the leading player in concrete paving in Germany Î Sig
Slide 13: 2002 Components of Growth
2002 COMPONENTS OF GROWTH Goodwill Profit on €m Sales EBITA Interest EBT amortisation disposals 2001 10,444 1,020 (61) 17 (173) 803 Exchange effects (390) (38) 2 - 8 (28) Disposed businesses (45) - - - - - 2002 Year-end Results, 4th March 2003 2001 acquisitions 436 34 (6) - (25) 3 2002 acquisitions
Slide 14: Cash Earnings per Share & Dividend
CASH EARNINGS PER SHARE & DIVIDEND € cent % Earnings per share before goodwill amortisation 132.54 +4 2002 Year-end Results, 4th March 2003 Depreciation per share 87.28 +1 Cash earnings per share 219.82 +3 Dividend per share 25.40 +10 14
Slide 15: 2002 Funds Flow
2002 FUNDS FLOW 2002 2001 Inflows €m €m Profit before tax 856 803 Depreciation 456 436 Goodwill amortisation 70 61 Working capital 90 (61) 1,472 1,239 2002 Year-end Results, 4th March 2003 Outflows Tax paid (162) (79) Dividends (135) (103) Capital expenditure (367) (452) Other (21) (31) (685) (665)
Slide 16: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS 2002 2001 Sales margins *EBITDA 13.9% 13.9% *EBITA (operating profit) 9.7% 9.8% 2002 Year-end Results, 4th March 2003 EBIT 9.2% 9.3% * excluding profit on disposals Tax rate 26.5% 27.0% EBIT return on Average Net Assets 13.3% 14.0% 16
Slide 17: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS Y/E Y/E 2002 2001 Debt (€bn) 1.7 1.9 2002 Year-end Results, 4th March 2003 Shareholders' funds (€bn) 4.8 4.8 Debt/shareholders' funds 36% 40% Debt/market capitalisation 28% 18% Interest cover EBITDA/Interest 11.3 8.5 EBIT/Interest 7.3 5.6 17
Slide 18: Pension Costs
PENSION COSTS z Total SSAP 24 pension cost charged to P&L €108m (2001: €96m) z FRS 17 charge would be lower at €85m (2001: €81m) 2002 Year-end Results, 4th March 2003 z Defined benefit scheme members c.23% of total employees z 2002 FRS 17 net pension liability €130m (2001: €119m asset) z €130m just
Slide 19: Europe - 2003 Outlook
EUROPE - 2003 OUTLOOK z Euroconstruct forecasts for major CRH markets: Î Belgium 0.0% Ï Finland +0.5% Î France 0.0% Ð Germany -1.1% Ð Ireland -7.2% Ð Netherlands -1.9% Ï Poland +3.4% Ï Spain +3.2% Î Switzerland +0.1% 2002 Year-end Results, 4th March 2003 Ï UK +3.8% z Ireland: strong H1, H2 likely to
Slide 20: Americas - 2003 Outlook
AMERICAS - 2003 OUTLOOK z Construction forecast c.-2% z Materials Î 2003 Federal Highway funding finally agreed at $31.6 billion Î High oil prices have curtailed bitumen winter fill programme 2002 Year-end Results, 4th March 2003 Î State funding constraints also a concern Î Recovery of energy costs
Slide 21: Overall - 2003 Outlook
OVERALL - 2003 OUTLOOK z World political / economic / energy backdrop uncertain z Markets likely to remain difficult for immediate future 2002 Year-end Results, 4th March 2003 z However, CRH well positioned in majority of markets z Continuing emphasis on cost control, cash flow optimisation z Unique
Slide 22: Supplementary Information
2002 Year-end Results, 4th March 2003 INFORMATION SUPPLEMENTARY 22
Slide 23: Analysis by Region
ANALYSIS BY REGION €M 2002 2001 % change Sales Ireland 714 704 + 1% Britain & Northern Ireland 699 680 + 3% 2002 Year-end Results, 4th March 2003 Mainland Europe 3,020 2,652 + 14% Americas 6,361 6,408 - 1% Total 10,794 10,444 + 3% EBITA Ireland 131 134 - 2% Britain & Northern Ireland 56 62 - 10% Mai
Slide 24: Analysis by Region
ANALYSIS BY REGION €M 2002 2001 % change Goodwill amortisation Ireland 0.3 0.2 + 50% Britain & Northern Ireland 5.4 5.2 + 4% 2002 Year-end Results, 4th March 2003 Mainland Europe 28.6 25.2 + 13% Americas 35.3 30.0 + 18% Total 69.6 60.6 + 15% Profit on disposals Ireland 7.8 16.5 - 53% Britain & North
Slide 25: Analysis by Division
ANALYSIS BY DIVISION €M 2002 2001 % change Sales Europe Materials 1,927 1,861 + 4% Europe P&D 2,506 2,175 + 15% 2002 Year-end Results, 4th March 2003 Americas Materials 3,072 3,168 - 3% Americas P&D 3,289 3,240 + 2% Total 10,794 10,444 + 3% EBITA Europe Materials 266 271 - 2% Europe P&D 154 117 + 32
Slide 26: Analysis by Division
ANALYSIS BY DIVISION €M 2002 2001 % change Goodwill amortisation Europe Materials 19.9 18.9 + 5% Europe P&D 14.4 11.7 + 23% 2002 Year-end Results, 4th March 2003 Americas Materials 19.8 17.0 + 16% Americas P&D 15.5 13.0 + 19% Total 69.6 60.6 + 15% Profit on disposals Europe Materials 11.7 17.8 - 34%
Slide 27: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Clondalkin 2002 Year-end Results, 4th March 2003 Dublin 22 Ireland Phone: + 353 1 404 1000 Fax: + 353 1 404 1007 E-mail: ir@crh.com or look up our Website - www.crh.com CRH® is a registered Trade Mark of CRH plc 27