Slide 1: CRH plc 2006 Interim Results, 29th August 2006
Liam O'Mahony, Chief Executive Myles Lee, Finance Director CRH CRH plc, plc, 2006 2006 Interim Interim Results, 29th Results, 29 th August August 2006 2006 11
Slide 2: Contents
CONTENTS H1 2006 Highlights 2 2006 Overview 3 Europe Materials 4 Europe Products 5 Europe Distribution 6 Americas Materials 7 Americas Products 8 Americas Distribution 9 Development Activity 10 H1 2006 Components of Growth 11 Key Financial Data and Ratios 12 H1 2006 Funds Flow 13 Debt Ratios & Inter
Slide 3: H1 2006 Highlights
H1 2006 HIGHLIGHTS Sales €8,028m Ï 27% Operating profit €613m Ï 38% Profit before tax €526m Ï 37% EPS Basic 73.7c Ï 32% Cash EPS 131.7c Ï 25% Dividend 13.50c Ï 20% 23rd consecutive year of dividend increase CRH CRH plc, plc, 2006 2006 Interim Interim Results, 29th Results, 29 th August August 2006 2
Slide 4: 2006 Overview
2006 OVERVIEW z Europe – Operating Profit +19% Î Materials: good improvement on H1 2005 outcome Î Products: profit advanced; good acquisition contributions plus organic growth Î Distribution: strong increase with the bulk of advance from underlying operations z Americas – Operating Profit +68% Î Mat
Slide 5: Europe Materials
EUROPE MATERIALS Analysis of change H1 Acquisitions €m 2006 2005 FX 2005 2006 Organic Sales +10% 1,334 1,216 +118 +4 +11 +6 +97 Op. profit +8% 152 141 +11 - +1 +1 +9 Op. margin 11.4% 11.6% z Ireland: Higher input costs offset by gradual price recovery to give modest profit advance z Finland/Baltics:
Slide 6: Europe Products
EUROPE PRODUCTS Analysis of change H1 Acquisitions Reorg. €m 2006 2005 FX 2005 2006 Costs Organic Sales +25% 1,486 1,189 +297 +1 +186 +73 - +37 Op. profit +30% 112 86 +26 - +19 +6 -1 +2 Op. margin 7.5% 7.2% z Concrete: Structural: Strong organic profit increase in Benelux, France, Denmark Architectu
Slide 7: Europe Distribution
EUROPE DISTRIBUTION Analysis of change H1 Acquisitions Reorg. €m 2006 2005 FX 2005 2006 Costs Organic Sales +30% 1,319 1,016 +303 -2 +246 +17 - +42 Op. profit +33% 66 50 +16 - +4 +1 -1 +12 Op. margin 5.0% 4.9% z DIY: Pick-up in overall Dutch consumer confidence evident from early in the year But not
Slide 8: Americas Materials
AMERICAS MATERIALS Analysis of change H1 Acquisitions €m 2006 2005 FX 2005 2006 Organic Sales +31% 1,393 1,065 +328 +48 +83 +45 +152 Op. profit n/m 35 -4 +39 - +1 +7 +31 Op. margin 2.5% -0.4% z H1 outcome exceeded expectations helped by mild winter & early private sector demand z Satisfactory volume
Slide 9: Americas Products
AMERICAS PRODUCTS Analysis of change H1 Acquisitions €m 2006 2005 FX 2005 2006 Organic Sales +36% 1,813 1,337 +476 +67 +94 +138 +177 Op. profit +40% 202 144 +58 +8 +3 +5 +42 Op. margin 11.1% 10.7% z Excellent H1; generally favourable weather, good Res activity, further Non-Res improvement z APG: Fur
Slide 10: Americas Distribution
AMERICAS DISTRIBUTION Analysis of change H1 Acquisitions €m 2006 2005 FX 2005 2006 Organic Sales +35% 683 506 +177 +23 +88 +25 +41 Op. profit +64% 46 28 +18 +1 +9 +2 +6 Op. margin 6.8% 5.6% z H1 saw continued positive trading conditions in both roofing/siding and interior products z With RMI focus,
Slide 11: Development Activity
DEVELOPMENT ACTIVITY z H1 activity over €0.8Bn Î MMI – $350m – fencing products, welded wire reinforcement & construction accessories Î Halfen-Deha – €170m – construction accessories Î Over 30 other transactions z July/August activity over €1.1Bn Î $1.3Bn acquisition of Ashland Paving And Constructi
Slide 12: H1 2006 Components of Growth
H1 2006 COMPONENTS OF GROWTH €m Sales EBIT Disposals Finance Assocs EBT H1 2005 reported 6,329 445 10 (78) 6 383 Exchange effects 141 9 - (2) - 7 H1 2005 at H1 2006 FX rates 6,470 454 10 (80) 6 390 Incremental impact 2005 acquisitions 708 37 - (26) - 11 2006 acquisitions 304 22 - (10) - 12 Ongoing o
Slide 13: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS H1 2006 2005 Sales margins EBITDA 11.5% 11.2% Operating profit 7.6% 7.0% Profit before finance costs 7.8% 7.2% Tax rate 23.4% 21.1% CRH CRH plc, plc, 2006 2006 Interim Interim Results, 29th Results, 29 th August August 2006 2006 12 12
Slide 14: H1 Funds Flow
H1 FUNDS FLOW 2006 2005 Inflows €m €m Profit before tax 526 383 Depreciation 300 260 Amortisation of intangibles 12 3 838 646 Outflows Working capital (474) (350) Tax paid (61) (59) Dividends (149) (125) Capital expenditure (434) (347) Other (17) (5) (1,135) (886) Operating cash outflow (297) (240)
Slide 15: Debt Ratios & Interest Cover
DEBT RATIOS & INTEREST COVER H1 Y/E H1 2005 2005 2006 3,268 3,448 Debt incl JVs (€Bn) 4,395 5,414 6,234 Total Equity (€Bn) 6,412 60% 55% Debt/Total Equity 69% 28% 26% Debt/Market Capitalisation 32% Interest cover (times)* 11.4 12.3 EBITDA/Net Interest 11.2 8.1 8.8 EBIT/Net Interest 8.0 * rolling 12-
Slide 16: 2006 Outlook - Europe
2006 OUTLOOK - EUROPE z Materials Î Continuing strength in Ireland & Finland; Iberia expected to be similar to 2005 Î Poland strong but tougher H2 comparatives; H2 comparatives easier in Switzerland Î Expect further improvement in underlying profits in H2 z Products Î Anticipate further H2 benefits
Slide 17: 2006 Outlook - Americas
2006 OUTLOOK - AMERICAS z Materials Î Highway markets robust; with higher prices may see some late season volume effect Î Primary focus; recovery of higher input costs and underlying margin improvement Î Modest positive impact expected for APAC post restructuring costs z Products Î Continuing to adv
Slide 18: 2006 Outlook - Overall
2006 OUTLOOK - OVERALL z Outlook broadly positive, despite some statistical evidence of slower US economic growth z CRH has had a particularly good start to the year z Our ongoing focus on recovery of input costs is showing good success z Have delivered record development activity over past 12 month
Slide 19: Supplementary Information
SUPPLEMENTARY INFORMATION 18 18
Slide 20: Analysis by Segment
ANALYSIS BY SEGMENT % €M 2006 2005 change Sales Europe Materials 1,333.5 1,215.7 10% Europe Products 1,485.9 1,188.9 25% Europe Distribution 1,319.5 1,016.0 30% Americas Materials 1,393.2 1,065.3 31% Americas Products 1,812.9 1,337.1 36% Americas Distribution 683.1 506.3 35% Total 8,028.1 6,329.3 27
Slide 21: Analysis by Region
ANALYSIS BY REGION % €M 2006 2005 change Sales Ireland 571.3 561.3 2% Benelux 1,269.0 1,191.9 6% Rest of Europe 2,292.9 1,661.8 38% Americas 3,894.9 2,914.3 34% Total 8,028.1 6,329.3 27% Operating Profit Ireland 71.6 70.5 2% Benelux 110.5 89.7 23% Rest of Europe 147.4 116.4 27% Americas 283.2 168.2
Slide 22: Profit on Disposal
PROFIT ON DISPOSAL €M 2006 2005 Analysis by Segment Europe Materials 8.8 4.7 Europe Products 0.5 0.6 Europe Distribution 2.2 (0.6) Americas Materials 4.6 4.7 Americas Products 1.1 0.2 Americas Distribution - 0.4 Total 17.2 10.0 Analysis by Region Ireland 6.9 3.3 Benelux 0.1 0.1 Rest of Europe 4.5 1.
Slide 23: Foreign Currency Rates
FOREIGN CURRENCY RATES Average Period ended Six months ended Year ended Six months ended Year ended euro 1= 2006 2005 2005 2006 2005 2005 US Dollar 1.2296 1.2847 1.2438 1.2713 1.2092 1.1797 Pound Sterling 0.6870 0.6859 0.6838 0.6921 0.6742 0.6853 Polish Zloty 3.8901 4.0796 4.0224 4.0546 4.0388 3.860
Slide 24: Euroconstruct Forecasts
EUROCONSTRUCT FORECASTS Construction output 2006 (Euroconstruct June 2006) % Belgium Ï +6.4 Denmark Ï +1.5 Finland Ï +3.6 France Ï +3.7 Germany Ï +1.2 Ireland Ï +5.7 Netherlands Ï +4.0 Poland Ï +8.9 Portugal Ð (3.2) Spain Ï +4.4 Sweden Ï +6.8 Switzerland Ï +1.7 United Kingdom Ï +1.5 CRH CRH plc, plc
Slide 25: 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