Slide 1: Myles Lee, Albert Manifold, Maeve Carton
Myles Lee Albert Manifold Maeve Carton CEO COO FD
Slide 2: 2012 Interim Results
1 2012 Interim Results Results Overview Finance Overview Full Year Outlook CRH plc, 2012 Interim Results, 14th August 2012
Slide 3: 2012 Interim Results Highlights
2 2012 Interim Results Highlights Sales €8.6 Bn +5% EBITDA €0.57 Bn ‐1% Margins Like‐for‐like +1% In line with Americas margins ahead FX impact +4% May guidance Europe lower Net Debt €3.9 Bn Operating Cash Flow Dividend Similar to H1 2011 Seasonal H1 Outflow of Maintained at 18.5 cent Despite US$ 1.
Slide 4: Europe – Challenging Market Backdrop
3 Europe – Challenging Market Backdrop €m % chg H1’12 H1‘11 Materials: Ahead despite adverse weather conditions and weak market backdrop Sales (5%) 4,569 4,826 EBITDA (13%) 352 403 Products: Impacted by deteriorating confidence and poor Q1 weather Op. profit (18%) 177 216 EBITDA margin 7.7% 8.4% Dis
Slide 5: Europe Materials – Resilient Performance
4 Europe Materials – Resilient Performance €m % chg H1’12 H1‘11 Adjusted for Pension Margins EBITDA flat Similar to H1 ’11 EBIT +3% excluding pension gain Sales ‐ 1,334 1,337 Volumes Ukraine EBITDA +11% 166 149 H1 overall l‐f‐l volumes Good contribution from down 2% on 2011 new cement plant Op. prof
Slide 6: Europe Products – Weakening Demand
5 Europe Products – Weakening Demand €m % chg H1’12 H1’11 Adjusted for Pension Margins Sales (11%) 1,251 1,408 EBITDA ‐17% Excluding pension gain EBIT ‐23% slightly down on H1’11 EBITDA (28%) 90 125 Op. profit (43%) 34 60 Concrete/Clay Building Products EBITDA margin 7.2% 8.9% Concrete EBITDA down M
Slide 7: Europe Distribution – Difficult H1 Backdrop
6 Europe Distribution – Difficult H1 Backdrop €m % chg H1’12 H1’11 Netherlands Switzerland Sales (5%) 1,984 2,081 Weak retail sales Weather and CHF related Margin pressures pricing pressure EBITDA (26%) 96 129 Op. profit (35%) 60 93 Other Regions SHAP EBITDA margin 4.8% 6.2% DE/FR/AT Good performanc
Slide 8: Americas – Good Progress in H1
7 Americas – Good Progress in H1 €m % chg H1’12 H1‘11 Materials: Aggs/Asphalt/RMC volumes and prices ahead; construction still competitive Sales +20% 4,019 3,340 EBITDA +26% 216 171 Products: Key driver of H1 profit and margin progress Op. Profit n/m 7 (32) EBITDA margin 5.4% 5.1% Distribution: Posi
Slide 9: Americas Materials – Strong H1 Volume Growth
8 Americas Materials – Strong H1 Volume Growth H1 Volumes Avg Unit Var. €m % chg H1’12 H1‘11 Total Heritage Price Cost Aggs +10% +8% +1% +3% Sales +21% 1,869 1,546 Asphalt +11% +6% +5% +4% RMC +11% +7% +2% ‐ EBITDA +25% 74 59 Aggregates Asphalt Op. loss +8% (67) (73) Strong H1 volumes Improved margi
Slide 10: Americas Products – Profit & Margin Improvement
9 Americas Products – Profit & Margin Improvement €m % chg H1’12 H1’11 Sales US$ Precast Sales +19% 1,435 1,208 Total +$165m up 10% L‐f‐l sales up 19% L‐f‐l +$148m up 9% Backlogs 23% ahead EBITDA +26% 122 97 Op. profit +81% 65 36 APG Building Envelope EBITDA margin 8.5% 8.0% L‐f‐l Sales up 6% L‐f‐l
Slide 11: Americas Distribution – Continued Progress
10 Americas Distribution – Continued Progress €m % chg H1’12 H1’11 Sales US$ Acqs – Sales $68m Sales +22% 715 586 Total +$105m (+13%) Minimal EBITDA/EBIT in L‐f‐l +$37m (+5%) H1 due to seasonality EBITDA +33% 20 15 Op. profit +80% 9 5 Exterior Products Interior Products EBITDA margin 2.8% 2.6% L‐f‐l
Slide 12: Group EBITDA Margin
11 Group EBITDA Margin EBITDA % H1’12 H1’11 Europe Europe Materials 12.4% 11.1% EBITDA % excluding pension gains Materials 10.9% vs. 10.9% in H1’11 Europe Products 7.2% 8.9% Products 7.2% vs. 7.7% in H1’11 Europe Distribution 4.8% 6.2% Americas Materials 4.0% 3.8% Americas Americas Products 8.5% 8.0
Slide 13: Responding to More Difficult European Conditions
12 Responding to More Difficult European Conditions Adapting our European capacity and reducing our cost base Significant multi‐year programme – €1Bn since 2007 (c50% Group) 2012: Further re‐sizing of operations in challenged markets Increasing our effectiveness and efficiency Aggressively pur
Slide 14: 2012 Interim Results
13 2012 Interim Results Results Overview Finance Overview Full Year Outlook CRH plc, 2012 Interim Results, 14th August 2012
Slide 15: Group – EBITDA Close to 2011; EBIT Unchanged
14 Group – EBITDA Close to 2011; EBIT Unchanged €m % chg H1’12 H1‘11 Sales Like‐for‐like +1% … Q1 +2%; Q2 ‐1% Sales 5% 8,588 8,166 EBITDA (1%) 568 574 EBITDA/EBIT Europe: EBITDA ‐€51m; EBIT ‐€39m Op. profit ‐ 184 184 Americas: EBITDA +€45m; EBIT +€39m EBITDA margin 6.6% 7.0% Margins lower Op. margin
Slide 16: Group Overall – Earnings Ahead; Dividend Maintained
15 Group Overall – Earnings Ahead; Dividend Maintained €m % chg H1’12 H1‘11 Profit on Disposals 196 19 Secil/Magnetic disposals Associates (118) 12 Uniland impairment Net Finance Costs (145) (120) FX, Eurobond, etc. Profit Before Tax +23% 117 95 Net benefits from disposals/impairments Basic EPS (cen
Slide 17: Improved Seasonal Cash Outflow
16 Improved Seasonal Cash Outflow H1 2012 H1 2011 Inflows (€m) Profit before tax 117 95 Depreciation/Amortisation 384 390 501 485 Outflows (€m) Working capital (636) (706) Dividends (pre‐Scrip) (317) (312) Capital expenditure (314) (294) Tax / Other (143) (151) (1,410) (1,463) Operating cash outflow
Slide 18: Net Debt Level Below June 2011
17 Net Debt Level Below June 2011 H1 2012 H1 2011 Operating cash outflow (€ m) (909) (978) Acquisitions and investments (256) (163) Disposals 761 392 Share issues (net) 45 111 Translation (73) 169 Debt (increase) (432) (469) Period end Net Debt (3,915) (3,942) ... at constant FX net debt c€370m lowe
Slide 19: 2012 Interim Results
18 2012 Interim Results Results Overview Finance Overview Full Year Outlook CRH plc, 2012 Interim Results, 14th August 2012
Slide 20: 2012 Outlook
19 2012 Outlook Europe Eurozone problems have intensified over the past six months Continuing to erode consumer and business confidence Expect H2 l‐f‐l sales to show a higher decline than H1’s ‐5% Americas Current trends suggest Q1 weather pulled forward demand After good early momentum US
Slide 21: CRH Focus
20 CRH Focus Cost base Commercial Further adjusting cost base in Sharpening commercial focus in response to evolving demand face of ongoing margin pressures Cash Generation Development Optimising cash generation capacity Maintaining strong balance sheet ‐ working capital & capex control for acquisit
Slide 22: Supplementary Information
21 S UPPLEMENTARY I NFORMATION CRH plc, 2012 Interim Results, 14th August 2012
Slide 23: CRH Group – Components of Performance
22 CRH Group – Components of Performance € million Operating Profit on Finance Associates Sales EBITDA Profit Disposals Costs PAT PBT H1 2011 8,166 574 184 19 (120) 12 95 Exchange +305 +10 (6) ‐ (6) ‐ (12) 2011/2012 Acquisitions +251 +25 +12 ‐ (5) ‐ +7 2011/2012 Divestments (192) (12) (2) +174 +3 ‐
Slide 24: Europe Materials – Components of Performance
23 Europe Materials – Components of Performance Analysis of Change €m % Chg H1 ‘12 H1 ‘11 Change Organic Acquisitions Divestments Restructuring Exchange Sales ‐ 1,334 1,337 (3) +7 +44 (49) ‐ (5) EBITDA +11% 166 149 +17 +27 +8 (12) (2) (4) Op.Profit +32% 83 63 +20 +29 +4 (8) (2) (3) EBITDA Margin 12.
Slide 25: Europe Products – Components of Performance
24 Europe Products – Components of Performance Analysis of Change €m % Chg H1 ‘12 H1 ‘11 Change Organic Acquisitions Divestments Restr/Impair Exchange Sales (11%) 1,251 1,408 (157) (73) +50 (143) ‐ +9 EBITDA (28%) 90 125 (35) (38) +6 ‐ (2) (1) Op.Profit (43%) 34 60 (26) (40) +5 +6 +4 (1) EBITDA Marg
Slide 26: Europe Distribution – Components of Performance
25 Europe Distribution – Components of Performance Analysis of Change €m % Chg H1 ‘12 H1 ‘11 Change Organic Acquisitions Divestments Restructuring Exchange Sales (5%) 1,984 2,081 (97) (152) +23 ‐ ‐ +32 EBITDA (26%) 96 129 (33) (38) +1 ‐ +2 +2 Op.Profit (35%) 60 93 (33) (37) +1 ‐ +2 +1 EBITDA Margin
Slide 27: Americas Materials – Components of Performance
26 Americas Materials – Components of Performance Analysis of Change €m % Chg H1 ‘12 H1 ‘11 Change Organic Acquisitions Divestments Restructuring Exchange Sales +21% 1,869 1,546 +323 +134 +61 ‐ ‐ +128 EBITDA +25% 74 59 +15 +7 +8 ‐ (5) +5 Op.Loss +8% (67) (73) +6 +15 +2 ‐ (5) (6) EBITDA Margin 4.0% 3
Slide 28: Americas Products – Components of Performance
27 Americas Products – Components of Performance Analysis of Change €m % Chg H1 ’12 H1 ‘11 Change Organic Acquisitions Divestments Restructuring Exchange Sales +19% 1,435 1,208 +227 +114 +21 ‐ ‐ +92 EBITDA +26% 122 97 +25 +15 +2 ‐ +1 +7 Op.Profit +81% 65 36 +29 +24 +1 ‐ +1 +3 EBITDA Margin 8.5% 8.0%
Slide 29: Americas Distribution – Components of Performance
28 Americas Distribution – Components of Performance Analysis of Change €m % Chg H1 ’12 H1 ‘11 Change Organic Acquisitions Divestments Restructuring Exchange Sales +22% 715 586 +129 +28 +52 ‐ ‐ +49 EBITDA +33% 20 15 +5 +4 ‐ ‐ ‐ +1 Op.Profit +80% 9 5 +4 +5 (1) ‐ ‐ ‐ EBITDA Margin 2.8% 2.6% Op.Profit
Slide 30: H1 2012 Development Spend €0.25Bn
29 H1 2012 Development Spend €0.25Bn H1 2012 Europe €175m Americas €81m Total €256m H1 2012 10 bolt‐ons to our Materials platforms & 1 investment in our associate Yatai 7 bolt‐ons across our Products and Distribution businesses CRH plc, 2012 Interim Results, 14th August 2012
Slide 31: Translation of Foreign Currencies
30 Translation of Foreign Currencies Average Period ended Six months ended Year ended 30 June 31 December 30 June 31 December euro 1 = 2012 2011 2011 2012 2011 2011 US Dollar 1.2965 1.4038 1.3922 1.2590 1.4453 1.2939 Pound Sterling 0.8225 0.8682 0.8679 0.8068 0.9025 0.8353 Polish Zloty 4.2459 3.9527
Slide 32: Balanced Debt Maturity Profile
31 Balanced Debt Maturity Profile € Bn June 2012 (incl. JVs) 1.5 1.0 0.5 0.0 CRH plc, 2012 Interim Results, 14th August 2012
Slide 33: CRH Debt Metrics Amongst Best in Sector
32 CRH Debt Metrics Amongst Best in Sector End December 2011 Net Debt / LTM EBITDA 8x Europe Peers Americas Peers 7.5x 6.9x 6x 4x 3.7x 3.3x 3.3x 2.9x 2x 2.1x 1.6x 0x BBB BBB+ BBB BBB+ BB BB+ B‐ BB CRH CRH plc, 2012 Interim Results, 14th August 2012 Source: Company Reports; Davy Weekly Aug 2012; S&P
Slide 34: Analysis by Segment
33 Analysis by Segment Sales Revenue (€ m) H1 ‘12 H1 ‘11 % chg EBITDA Profit (€m) H1 ‘12 H1 ‘11 % chg Europe Materials 1,334 1,337 ‐ Europe Materials 166 149 +11% Europe Products 1,251 1,408 (11%) Europe Products 90 125 (28%) Europe Distribution 1,984 2,081 (5%) Europe Distribution 96 129 (26%) Amer
Slide 35: Analysis by Segment
34 Analysis by Segment Operating Profit (€m) H1 ‘12 H1 ‘11 % chg Profit on Disposal (€m) H1 ‘12 H1 ‘11 Europe Materials 83 63 +32% Europe Materials 140 ‐ Europe Products 34 60 (43%) Europe Products 45 12 Europe Distribution 60 93 (35%) Europe Distribution ‐ 1 Americas Materials (67) (73) +8% America
Slide 36: Euroconstruct 2012 Forecasts – June 2012
35 Euroconstruct 2012 Forecasts – June 2012 Construction Output % change Construction Output % change Belgium (1.5%) Poland +6.0% Denmark +3.2% Portugal (12.9%) Finland (2.6%) Spain (21.1%) France +2.2% Switzerland +2.6% Germany +1.6% United Kingdom (4.0%) Ireland (14.2%) Weste
Slide 37: PCA 2012 Forecasts (United States) – July 2012
36 PCA 2012 Forecasts (United States) – July 2012 GDP +1.9% Construction Put‐in‐Place % change Total Construction Put‐in‐Place +5.5% Industrial +26.7% Cement Consumption +7.0% Office +4.1% Hotels, Motels +23.0% Construction Put‐in‐Place % change Total Non‐residential +11.6% New Housing
Slide 38: Contact Us
37 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 This presentation contains certain forward‐looking statements as defined under US legislation. By their Website: www.crh.com nature, such statements in