Slide 1: 2003 Interim Results, September 2 2003
2003 Interim Results, September 2 2003 Liam O’Mahony, Chief Executive Harry Sheridan, Finance Director 1
Slide 2: Contents
CONTENTS H1 2002 Highlights 3 H1 2003 Overview 4 Republic of Ireland 5 Britain & Northern Ireland 6 Mainland Europe - Materials 7 Mainland Europe - P&D 8 Mainland Europe - 2003 Outlook 9 2003 Interim Results, September 2 2003 Americas - Materials 10 Americas - P&D 11 Americas - 2003 Outlook 12 US Di
Slide 3: Forward-looking statements
This interim results presentation contains certain forward-looking statements as defined under US legislation. By their nature, such 2003 Interim Results, September 2 2003 statements involve uncertainty; as a consequence, actual results and developments may differ from those expressed in or implied
Slide 4: H1 2003 Highlights
H1 2003 HIGHLIGHTS 2003 2002 €m €m change Sales 4,661 4,801 -3% Operating profit before goodwill 245 295 -17% 2003 Interim Results, September 2 2003 Profit before tax 161 196 -18% € cent € cent EPS before goodwill 28.89 33.51 -14% EPS after goodwill 22.16 26.78 -17% Cash EPS 69.95 76.59 -9% Dividend
Slide 5: H1 2003 Overview
H1 2003 OVERVIEW z Ireland: Strong residential demand; higher sales and profits z UK: Higher Sterling outcome; but similar euro profits due to FX z Europe: 2003 Interim Results, September 2 2003 Î Materials: Poland and Finland hit by weather; lower profits Î P&D: Higher profits reflecting benefits f
Slide 6: Republic of Ireland
REPUBLIC OF IRELAND Analysis of change H1 Acquisitions €m 2003 2002 FX 2002 2003 Organic Sales +14% 353 309 +44 - - - +44 Op profit* +14% 68 60 +8 - - - +8 Op margin 19.4% 19.6% 2003 Interim Results, September 2 2003 *excluding goodwill amortisation €0.1m (2002: €0.1m) and profit on disposal €2.2m (
Slide 7: Britain & Northern Ireland
BRITAIN & NORTHERN IRELAND Analysis of change H1 Acquisitions/Disposals €m 2003 2002 FX 2002 2003 Organic Sales +3% 341 330 +11 -31 +6 -4 +40 Op profit* - 30 30 - -3 +1 - +2 Op margin 8.6% 8.9% 2003 Interim Results, September 2 2003 *excluding goodwill amortisation €2.6m (2002: €2.7m) and profit on
Slide 8: Mainland Europe - Materials
MAINLAND EUROPE - MATERIALS Analysis of change H1 Acquisitions Reorg. €m 2003 2002 FX ‘02 ‘03 costs Organic Sales - 3% 444 460 -16 -24 +12 +10 - -14 Op profit* -27% 33 45 -12 -2 +1 +1 +7 -19 Op margin 7.3% 9.8% *excluding goodwill amortisation €10.1m (2002: €10.8m) and profit on disposal €0.7m (2002
Slide 9: Mainland Europe - P&D
MAINLAND EUROPE - P&D Analysis of change H1 Acquisitions Reorg. €m 2003 2002 FX ‘02 ‘03 costs Organic Sales +19% 1,116 939 +177 -5 +168 +32 - -18 Op profit* +10% 54 49 +5 - +8 +2 - -5 Op margin 4.9% 5.2% *excluding goodwill amortisation €4.6m (2002: €4.2m) and profit on disposal €0.4m (2002: €1.5m);
Slide 10: Mainland Europe - 2003 Outlook
MAINLAND EUROPE - 2003 OUTLOOK z Euroconstruct forecasts continued weak markets z Materials: Î Better demand in Poland and Finland in recent months 2003 Interim Results, September 2 2003 Î Incremental H2 impact of 2002/2003 acquisitions Î Should largely recover first half operating profit decline z
Slide 11: Americas - Materials
AMERICAS - MATERIALS Analysis of change H1 Acquisitions €m 2003 2002 FX 2002 2003 Organic Sales -17% 921 1,108 -187 -208 +47 +36 -62 Op loss* -31% (39) (30) -9 +6 +2 +3 -20 Op margin -4.3% -2.7% 2003 Interim Results, September 2 2003 *excluding goodwill amortisation €8.9m (2002: €9.9m) and profit on
Slide 12: Americas - P&D
AMERICAS - P&D Analysis of change H1 Acquisitions €m 2003 2002 FX 2002 2003 Organic Sales -10% 1,486 1,655 -169 -307 +143 +67 -72 Op profit* -30% 99 141 -42 -26 +6 +10 -32 Op margin 6.7% 8.5% 2003 Interim Results, September 2 2003 *excluding goodwill amortisation €9.0m (2002: €7.4m) and loss on disp
Slide 13: Americas - 2003 Outlook
AMERICAS - 2003 OUTLOOK z Construction forecasts: -3.1% (Dodge) z Materials: Î Good backlogs but clawback of H1 deficit hampered by wet July/August Î Continuing high energy costs largely recovered through higher prices 2003 Interim Results, September 2 2003 Î SAFETEA: reauthorisation process will in
Slide 14: US Distribution Asbestos Claims
US DISTRIBUTION ASBESTOS CLAIMS z 251 claimants announced 30th September 2002 z 35 new claimants notified in last eleven months z 11 claims disposed of since September ‘02 for US$11,200 gross 2003 Interim Results, September 2 2003 z Continuing to settle only on a minimal and pragmatic basis z 275 cl
Slide 15: H1 2003 Acquisitions
H1 2003 ACQUISITIONS z Europe Materials €35m Î 85% stake in Trzuskawica Lime in Poland Î Bolt-on aggregates deal in Finland z Europe P&D €117m Î Plakabeton, Belgian metal building accessories operation 2003 Interim Results, September 2 2003 Î 16 Gamma stores in 3 deals in Holland/Belgium Î Concrete;
Slide 16: H1 2003 Components of Change
H1 2003 COMPONENTS OF CHANGE Goodwill Profit on €M Sales EBITA Interest EBT amortisation disposals H1 2002 4,801 295 (35) 10 (74) 196 Exchange effects (575) (25) 4 - 11 (10) 2003 Interim Results, September 2 2003 2002 Acquisitions 376 18 (2) - (8) 8 2003 Acquisitions 145 16 (2) - (4) 10 2003 Disposa
Slide 17: Cash Earnings per Share & Dividend
CASH EARNINGS PER SHARE & DIVIDEND €cent % Earnings per share before goodwill amortisation 28.89 -14 2003 Interim Results, September 2 2003 Depreciation per share 41.06 -5 Cash earnings per share 69.95 -9 Dividend per share 8.20 +10 16
Slide 18: H1 Funds Flow
H1 FUNDS FLOW 2003 2002 2001 Inflows €m €m €m Profit before tax 161 196 186 Depreciation 216 225 209 Goodwill amortisation (excluding JVs) 34 34 27 411 455 422 Outflows 2003 Interim Results, September 2 2003 Working capital (300) (214) (363) Tax paid (41) (52) (13) Dividends (99) (90) (68) Capital e
Slide 19: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS H1 H1 2003 2002 Sales margins *EBITDA 9.9% 10.8% 2003 Interim Results, September 2 2003 *EBITA (operating profit) 5.3% 6.1% EBIT 4.6% 5.6% *excluding profit on disposals Tax Rate 26% 27% 18
Slide 20: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS H1 Y/E H1 2002 2002 2003 2.3 1.7 Debt (€bn) 2.3 4.5 4.8 Shareholder’s funds (€bn) 4.6 2003 Interim Results, September 2 2003 51% 36% Debt/shareholders’ funds 51% 26% 28% Debt/market capitalisation 33% Interest cover* 10.0 11.3 EBITDA/Interest 12.5 6.4 7.3 EBIT/Interest
Slide 21: H1 Summary & Full Year 2003 Outlook
H1 SUMMARY & FULL YEAR 2003 OUTLOOK z Difficult first half in context of: Î Tough markets in most regions; generally severe weather Î €10m adverse foreign exchange translation effect at PBT level z However, second half is seasonally much more important 2003 Interim Results, September 2 2003 z Deal f
Slide 22: Supplementary Information
2003 Interim Results, September 2 2003 INFORMATION SUPPLEMENTARY 21
Slide 23: Analysis by Region
ANALYSIS BY REGION €m 2003 2002 change Sales Ireland 353 309 +14% Britain & Northern Ireland 341 330 +3% 2003 Interim Results, September 2 2003 Mainland Europe 1,560 1,399 +12% Americas 2,407 2,763 -13% Total 4,661 4,801 -3% EBITA Ireland 68.6 60.4 +14% Britain & Northern Ireland 29.4 29.5 - Mainlan
Slide 24: Analysis by Region
ANALYSIS BY REGION €m 2003 2002 change Goodwill amortisation Ireland 0.1 0.1 - Britain & Northern Ireland 2.6 2.7 -4% 2003 Interim Results, September 2 2003 Mainland Europe 14.7 15.0 -2% Americas 17.9 17.3 +3% Total 35.3 35.1 +1% Profit on disposals Ireland 2.2 3.5 -37% Britain & Northern Ireland 3.
Slide 25: Analysis by Division
ANALYSIS BY DIVISION €m 2003 2002 change Sales Europe Materials 913 874 +4% Europe P&D 1,341 1,164 +15% 2003 Interim Results, September 2 2003 Americas Materials 921 1,108 -17% Americas P&D 1,486 1,655 -10% Total 4,661 4,801 -3% EBITA Europe Materials 105.1 108.8 -3% Europe P&D 79.6 74.7 +7% America
Slide 26: Analysis by Division
ANALYSIS BY REGION €m 2003 2002 change Goodwill amortisation Europe Materials 8.9 10.8 -18% Europe P&D 8.5 7.0 +21% 2003 Interim Results, September 2 2003 Americas Materials 8.9 9.9 -10% Americas P&D 9.0 7.4 +22% Total 35.3 35.1 +1% Profit on disposals Europe Materials 4.6 5.5 -16% Europe P&D 1.7 2.
Slide 27: Euroconstruct Forecasts
EUROCONSTRUCT FORECASTS Construction output 2003 % Belgium Ï +0.4 Denmark Î 0.0 Finland Ï +0.9 France Ð -1.1 2003 Interim Results, September 2 2003 Germany Ð -1.6 Ireland Ð -3.2 Netherlands Ð -1.9 Poland Ð -2.5 Portugal Ð -4.2 Spain Ï +3.0 Sweden Ï +0.3 Switzerland Ð -1.5 United Kingdom Ï +4.9 26
Slide 28: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Clondalkin 2003 Interim Results, September 2 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