Breedon Group Plc · LSE:BREE
Breedon — H1 2019 Earnings Presentation
16 slides from Breedon's earnings presentation, Jul 25, 2019
Slide 1: 2019 Half-Year Results
2019 HALF-YEAR RESULTS 25 July 2019 1
Slide 2: H1 2019 Results: Introduction
H1 2019 RESULTS Introduction Financial review Rob Wood Group Finance Director Group & operational review Pat Ward Group Chief Executive Q&A 2
Slide 3: Rob Wood, Group Finance Director
H1 2019 RESULTS ROB WOOD Group Finance Director BREEDON GROUP 3
Slide 4: H1 2019 Financial Highlights
H1 2019 FINANCIAL HIGHLIGHTS Revenue Underlying EBIT* Underlying EBIT margin* £447.4m £49.5m 11.1% H1 2018: £378.4m +18% H1 2018: £42.0m +18% H1 2018: +11.1% Profit before taxation Underlying basic EPS* Net debt £39.5m 2.03p £343.7m H1 2018: £30.4m +30% H1 2018: 1.96p +4% Dec 2018: £310.7m * Underly
Slide 5: Financial Highlights Excluding the Impact of IFRS 16
H1 2019 FINANCIAL HIGHLIGHTS EXCLUDING THE IMPACT OF IFRS 16 Revenue Underlying EBIT Underlying EBIT margin £447.4m £48.9m 10.9% Unchanged Reported: £49.5m Reported: 11.1% Profit before taxation Underlying basic EPS Net debt £40.1m 2.07p £297.8m Reported: £39.5m Reported: £2.03p Reported: £343.7m 5
Slide 6: H1 2019 Income Statement
H1 2019 INCOME STATEMENT H1 2018 H1 2019 £ million £ million Variance Revenue 378.4 447.4 +18% Underlying EBITDA 66.0 81.1 +23% Depletion & depreciation (24.9) (32.4) Underlying operating profit 41.1 48.7 +18% Share of associate and joint ventures 0.9 0.8 Underlying EBIT 42.0 49.5 +18% Interest (4.6
Slide 7: Segmental Performance
H1 2019 SEGMENTAL PERFORMANCE H1 2018 H1 2019 H1 2018 H1 2019 Underlying Underlying Underlying Underlying EBIT EBIT EBIT EBIT £ million £ million Variance margin margin Variance Great Britain 30.5 30.8 +1% 10.2% 10.3% +0.1 ppt Ireland 4.4 8.9 +102% 11.9% 9.5% -2.4 ppt Cement 12.0 15.8 +32% 15.4% 16.
Slide 8: Product Volumes
H1 2019 PRODUCT VOLUMES y BREEDON Aggregates Asphalt Concrete Cement million tonnes million tonnes million m? million tonnes 9.9 1.4 1.6 1.0 9.3 0.9 H1 2018 H1 2019 H1 2018 H1 2019 Ht 2018 H1 2019 H1 2018 H1 2019, +6% +20% -5% +19%
Slide 9: Net Debt Movement
H1 2019 NET DEBT MOVEMENT BREEDON £ MILLION fe) 0 | | Opening debt EBITDA Non- Working _interest Tax Dividend Capital ~—-Disposals. Equity Debt Reported Impact of Closing debt underlying’ capital expenditure issued assumed on closing debt IFRS 160n excluding other adoption of closing debt IFRS 16 IF
Slide 10: Pat Ward, Group Chief Executive
H1 2019 RESULTS PAT WARD Group Chief Executive BREEDON GROUP 10
Slide 11: Market Background
H1 2019 MARKET BACKGROUND • UK economy grew by 0.5% in Q1 2019 & 0.3% in 3 months to May 2019 • RoI economy grew by 2.4% in Q1 2019 Great Britain • Construction output: Q1 vs Q4 2018 +1; flat in 3 months to May 2019 • Q1 2019 vs Q4 2018 sales volumes o aggregates -4.2% o asphalt -1.9% o concrete -4.
Slide 12: Group Highlights
H1 2019 GROUP HIGHLIGHTS • Improved performance across the business • Benefits of a full six-month contribution from Lagan • Strong cash generation • Leverage held at 2.0x EBITDA, post adoption of IFRS 16 • Healthy acquisition pipeline • July has started well, with positive medium-term market outloo
Slide 13: Business Reviews
H1 2019 BUSINESS REVIEWS Great Britain • Market leadership maintained in subdued Scottish market • Supply & lay contract won for 2nd phase of A9 Dualling • Good, broad-based performance in England and Wales • New aggregates reserves, asphalt and concrete capacity added • Blinkbonny, Staffs Concrete
Slide 14: 2019 Group Outlook
2019 GROUP OUTLOOK Market - GB • Improved trading conditions expected in H2 • Construction output set to be almost flat over year, recovering to +1.4% in 2020 • Significant regional variations • Underpinned by 30% growth in infrastructure in 2019-21 Market - Ireland • RoI construction output forecas
Slide 15: Q&A
y = BREEDON BREEDON GROUP 15
Slide 16: The information contained in this presentation document (the “presentation”, which term includes any Whilst
The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in any security and should not be considered as inves