Slide 1: Interim Trading & Development Update
Interim Trading & Development Update July 2010 Myles Lee Chief Executive
Slide 2: Focussed on delivery in challenging times
Expect H1 like-for-like Sales down c10% (H1’09: €8.3 Bn) With H1 EBITDA down c20% (H1’09: €0.65 Bn) H1 Operating Profit down c50% (H1’09: €0.24 Bn) And PBT close to breakeven (H1’09: €0.1 Bn) H1 development initiatives c€0.24 Bn; emphasis on Materials platforms Rolling 12-mth EBITDA / Ne
Slide 3: Europe: H1 like-for-like sales by division
Europe Materials Products Distribution Total H1 2010 Indications c.-10% c.-25% c.-20% high-teen % decline H1 2009 Actual €163m €149m €98m €410m Materials: H1 like-for-like Sales down c-10% Weather effects Jan/Feb/May; Pricing more competitive; Input costs stable Volumes: EI/ES challenged; PT/UA
Slide 4: Americas: H1 like-for-like sales by division
Americas Materials Products Distribution Total H1 2010 Indications c.-45% c.-10% c.+30% c.-30% H1 2009 Actual $180m $127m $14m $321m Materials: H1 like-for-like Sales down c-10% Volumes (like-for-like): Aggs -8%; Asphalt -10%; RMC -9% Pricing: Aggs modestly ahead; Asphalt/RMC/Construction more c
Slide 5: Cumulative Annualised Savings 2007 – 2010
Cumulative Annualised Savings 2007 – 2010 Announced: Jan-10 Gross savings of ... €1,650m … revised to … €1,710m Jul-10 Total savings increased by €60m on the €1,650m savings announced Jan-10 CRH Interim Trading & Development Update, 7th July 2010 4
Slide 6: P&L Impact of cost savings initiatives
P&L Impact Initiatives (€m) 2007 2008 2009 2010 2011 Annualised 2007 50 50 2008 447 398 845 2009 450 145 595 2010 190# 30# 220 Gross savings 50 447 848 335 30 1,710 Cost to implement - 62 205 58 - Net savings 50 385 643 277 30 # In progress in 2010 Progressive activity across all Divisions c40% perm
Slide 7: Increased H1 seasonal working capital build
Estimated Actual Actual € Bn H1 ’10 H1 ’09 H1 ’08 Profit before tax - 0.11 0.61 Depreciation/Amortisation 0.40 0.41 0.39 Working capital (0.40) (0.10) (0.61) Tax Paid (0.05) (0.04) (0.15) Dividends (0.30) (0.26) (0.26) Capital expenditure (0.25) (0.32) (0.56) Other - - - Operating cash outflow (0.60
Slide 8: Net Debt / Equity ratio c10 %points lower than at June 2009
Estimated Actual Actual € Bn H1 ’10 H1 ’09 H1 ’08 Operating cash outflow (0.60) (0.20) (0.58) Acquisitions / Investments (0.15) (0.28) (0.74) Disposals 0.05 0.05 0.06 Share Issues (net) 0.15 1.35 (0.30) Translation (0.48) 0.05 0.16 Debt decrease (increase) (1.03) 0.97 (1.40) Opening Net Debt 3.72 6.
Slide 9: Gross Debt by Maturity and Undrawn Committed Facilities
June 2010 Estimates – Including JVs Gross Debt by Maturity Undrawn € Bn (incl. Derivatives) Committed Facilities Overdrafts 0.1 - 2010 (H2) 0.2 0.2 2011 0.8 0.4 2012 1.0 0.8 2013 0.6 0.2 2014 0.9 0.0 2015 0.4 0.0 2016+ 1.8 0.0 Total 5.8 1.6 Cash/Liquid Invs 1.0 Strong capacity to pursue appropriate
Slide 10: Development activity: acquisitions and investments
Acquisition spend of €133 million on 13 transactions … includes … ◦ 9 bolt-ons to Americas Materials adding 243m tonnes aggregates reserves ◦ 4 bolt-ons to Europe Materials incl. a downstream acquisition in India €19 million equity investment in Yatai Cement in China ◦ CRH’s share of funding for
Slide 11: EBITDA to be ahead of last year in the seasonally more important H2
Concerns regarding European fiscal deficits and economic growth US indicators better though recent data suggests slower pace of recovery We expect ... … ongoing improvement in cumulative rate of like-for-like (LFL) sales declines … … full year LFL sales decline somewhat greater than previously
Slide 12: CRH plc Investor Relations
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 statements i