CRH PLC · NYSE:CRH
CRH — FY2009 Earnings Presentation
31 slides from CRH's earnings presentation, Mar 2, 2010
Slide 1: CRH plc 2009 Results
Slide 2: Contents
Contents 1 1 CRH CRH 2009 2009 Operating Operating Overview Overview 1 1 2 2 CRH CRH 2009 2009 Financial Financial Overview Overview 14 14 3 3 Outlook Outlook 21 21 4 4 Supplementary Supplementary Information Information 24 24 5 5 Contact Contact Us Us 30 30 CRH plc, 2009 Preliminary Results, 2nd Ma
Slide 3: 2009: A year of progressive action at CRH
2009 A year of progressive action at CRH Most severe and pervasive downturn in industry memory Strong, prompt management action; intensified focus on cash Implementing initiatives to reduce cost and maximise effectiveness Focusing on elements that contribute most to performance Improving compet
Slide 4: 2009 Outcome
2009 Outcome Results ahead of January guidance Actual Jan 2010 2009 Guidance €m EBITDA 1,803 Close to €1.8 Bn PBT (pre asset impairment) 773 Approx. €0.75 Bn Operating Cashflow 1,160 Approx. €1.0 Bn Development Spend 458 Approx. €0.45 Bn Net Debt* 3,723 Less than €4.0 Bn Net Debt / EBITDA* 2.1x Just
Slide 5: 2009 Key Figures
2009 Key Figures Results impacted by Restructuring / Impairment charges 2009 2008 % Chg €m Sales 17,373 20,887 (17%) EBITDA 1,803 2,665 (32%) Operating Profit 955 1,841 (48%) PBT 732 1,628 (55%) €cent EPS (basic) 88.3 210.2 (58%) DPS 62.5 62.2 +0.5% Excluding Excluding one-offs … one-offs … EBITDA E
Slide 6: Europe Divisions
Europe Divisions Materials/Products hardest hit; Distribution more resilient €m Sales EBITDA Op.Profit EBITDA down (37%) €1,600m 2009 9,384 921 510 2008 11,194 1,456 1,049 Distribution % chg (16%) (37%) (51%) €1,200m 2009 margin 9.8% 5.4% Products 2008 margin 13.0% 9.4% Distribution €800m Change €m
Slide 7: Europe Materials
Europe Materials Sharp volume declines and adverse FX effects EI, FI, UA cement vols down 35-45% €1,600m EBITDA down (46%) PL cement vols in line from mid year Distribution €1,200m Swiss infrastructure resilient Products €0.25Bn development spend Distribution €800m Products Infra Non-Res Res
Slide 8: Europe Products
Europe Products Tough markets across all businesses Concrete: Organic sales down (19%) €1,600m EBITDA down (28%) Clay: some UK pick-up in Q4 ….. Distribution €1,200m Insulation: seeking to exit Products Distribution €800m Products Infra Non-Res Res 2009: 15% 35% 50% €400m Materials New RMI Mat
Slide 9: Europe Distribution
Europe Distribution More resilient than Products due to greater RMI exposure Retail more robust than Trade €1,600m EBITDA down (21%) BM: Organic sales down (11%) Distribution €1,200m DIY: Organic sales down (6%) ….…. Products Distribution €800m Products Non-Res Res 2009: 20% 80% €400m Materials N
Slide 10: Americas Divisions
Americas Divisions Govt. Infra stimulus a counterbalance to Res/Non-Res declines €m Sales EBITDA Op.Profit EBITDA down (27%) €1,250m Distribution 2009 7,989 882 445 2008 9,693 1,209 792 €1,000m % chg (18%) (27%) (44%) Products Distribution 2009 margin 11.0% 5.6% €750m Products 2008 margin 12.5% 8.2%
Slide 11: Americas Materials
Americas Materials Margins ahead despite sharp volume declines Aggs: Vols -23%; Prices +6% €1,250m EBITDA down (7%) Distribution Asphalt: Vols -15%; Prices -2% €1,000m Superior margin performance …..…. Products Distribution €750m Products $0.23Bn spend on 10 bolt-ons €500m Infra Non-Res Res Mate
Slide 12: Americas Products
Americas Products Res continues to be weak; Non-Res more significant declines APG: impact of further Res declines €1,250m EBITDA down (53%) Distribution Precast: maintained margins €1,000m Glass: Eng. Products held up well Products Distribution €750m Products MMI: significant operating loss €500
Slide 13: Americas Distribution
Americas Distribution Exterior less affected than Interior Exterior Products (RMI) more robust €1,250m EBITDA down (66%) than Interior Products (new build) Distribution Exterior: Organic sales down (18%) €1,000m Products Distribution Interior: Organic sales down (31%) Products €750m €500m Non-Res
Slide 14: CRH Overall
CRH Overall Delivery in difficult markets EBITDA down (32%) €3,000m Sharp declines in Res & Non-Res Distribution Infrastructure and RMI-exposed businesses more resilient €2,000m Products Distribution Active response to market conditions Products €1,000m Significant cost / restructuring to Ma
Slide 15: Contents
Contents 1 1 CRH CRH 2009 2009 Operating Operating Overview Overview 1 1 2 2 CRH CRH 2009 2009 Financial Financial Overview Overview 14 14 3 3 Outlook Outlook 21 21 4 4 Supplementary Supplementary Information Information 24 24 5 5 Contact Contact Us Us 30 30 CRH plc, 2009 Preliminary Results, 2nd Ma
Slide 16: 2009 Profit Performance
2009 Profit Performance €m Sales EBITDA Op.Profit EBITDA down (32%) €3,000m 2009 17,373 1,803 955 2008 20,887 2,665 1,841 Distribution % chg (17%) (32%) (48%) €2,000m Products 2009 margin 10.4% 5.5% Distribution 2008 margin 12.8% 8.8% Products €1,000m Materials Materials €0m 2008 2009 CRH plc, 2009
Slide 17: 2009 Profit Performance
2009 Profit Performance Operational leverage c18% ... c33% without cost action €m Sales EBITDA Op.Profit Op. Profit down (48%) €3,000m 2009 17,373 1,803 955 2008 20,887 2,665 1,841 % chg (17%) (32%) (48%) €2,000m 2009 margin 10.4% 5.5% Distribution 2008 margin 12.8% 8.8% Products Change €m Sales EBI
Slide 18: Annualised Cost Savings now €1,650m
Annualised Cost Savings now €1,650m P&L Impact Initiatives (€m) ‘07 ‘08 ‘09 ‘10 Annualised 2007 50 50 2008 447 398 845 2009 450 145 595 2010 160 160 Gross savings 50 447 848 305 1,650 Cost to implement - 62 205 45 Net savings 50 385 643 260 Progressive Progressive activity activity across across all
Slide 19: 2009 Cash Performance
2009 Cash Performance Tight working capital and Capex control 2009 2008 % chg Inflows €m €m Profit before tax 732 1,628 (55%) Depreciation 794 781 +2% Amortisation of intangibles 54 43 +26% Working capital 661 (62) 2,241 2,390 (6%) Outflows Tax Paid (104) (322) (68%) Dividends (386) (369) +5% Capita
Slide 20: Cash Generation
Cash Generation €2.4Bn reduction in Net Debt 2009 2008 % chg €m €m Operating cash inflow 1,160 571 Acquisitions and investments (458) (1,072) Disposals 103 168 Share issues 1,445 59 Share purchases (2) (414) Translation 120 (240) Debt decrease / (increase) 2,368 (928) Net Debt / EBITDA 2.1x 2.3x EBI
Slide 21: 2009 Year end Debt
2009 Year end Debt Balanced maturity profile; well within covenants Breakdown of Net Debt Maturity Profile € Bn Total YE 2009 € Bn Gross Debt 5.1* 2010 0.4 Gross Cash (1.4) 2011 0.5 Net Debt 3.7 2012 0.8 2013 0.5 2014 0.9 Breakdown of Gross Debt € Bn Beyond 2014 2.0 YE 2009 Outstanding Bond Debt 4.7
Slide 22: Contents
Contents 1 1 CRH CRH 2009 2009 Operating Operating Overview Overview 1 1 2 2 CRH CRH 2009 2009 Financial Financial Overview Overview 14 14 3 3 Outlook Outlook 21 21 4 4 Supplementary Supplementary Information Information 24 24 5 5 Contact Contact Us Us 30 30 CRH plc, 2009 Preliminary Results, 2nd Ma
Slide 23: 2010 – External Environment
2010 – External Environment Expect difficult demand backdrop through much of 2010 Prolonged severe weather in January and February Europe fiscal deficit concerns; but … PL resilient & well placed for growth US Res recovery unclear; SAFETEA-LU extension progressing Potential translation benefits
Slide 24: CRH Focus – Internal Action
CRH Focus – Internal Action Significant adjustment to cost base over past 3 years Ongoing focus on the fundamentals ¾Scaling operations to market demand ¾Delivering further commercial and cost benefits ¾Maximising cash generation to ensure balance sheet flexibility ¾Generating value-enhancing devel
Slide 25: Contents
Contents 1 1 CRH CRH 2009 2009 Operating Operating Overview Overview 1 1 2 2 CRH CRH 2009 2009 Financial Financial Overview Overview 14 14 3 3 Outlook Outlook 21 21 4 4 Supplementary Supplementary Information Information 24 24 5 5 Contact Contact Us Us 30 30 CRH plc, 2009 Preliminary Results, 2nd Ma
Slide 26: Analysis by Segment
Analysis by Segment Sales Revenue (€m) 2009 2008 % change Europe Materials 2,749 3,696 (26%) Europe Products 3,002 3,686 (19%) Europe Distribution 3,633 3,812 (5%) Americas Materials 4,280 5,007 (15%) Americas Products 2,536 3,243 (22%) Americas Distribution 1,173 1,443 (19%) Total 17,373 20,887 (17
Slide 27: Analysis by Region
Analysis by Region Sales Revenue (€m) 2009 2008 % change Ireland 726 1,116 (35%) Benelux 2,762 3,070 (10%) Rest of Europe 5,888 6,999 (16%) Americas 7,997 9,702 (18%) Total 17,373 20,887 (17%) Operating Profit (€m) 2009 2008 % change Ireland (34) 110 (131%) Benelux 154 257 (40%) Rest of Europe 389 6
Slide 28: Profit on Disposal
Profit on Disposal Analysis by Segment (€m) 2009 2008 Europe Materials 4 16 Europe Products 1 15 Europe Distribution 5 15 Americas Materials 17 20 Americas Products (1) 2 Americas Distribution - 1 Total 26 69 Analysis by Region (€m) 2009 2008 Ireland 3 12 Benelux 2 18 Rest of Europe 5 16 Americas 16
Slide 29: Foreign Currency Rates
Foreign Currency Rates Average Rates Year end Rates euro 1= 2009 2008 2009 2008 US Dollar 1.3948 1.4708 1.4406 1.3917 Pound Sterling 0.8909 0.7963 0.8881 0.9525 Polish Zloty 4.3276 3.5121 4.1045 4.1535 Ukrainian Hryvnia 11.2404 7.7046 11.4738 10.8410 Swiss Franc 1.5100 1.5874 1.4836 1.4850 Canadian
Slide 30: Euroconstruct Forecasts
Euroconstruct Forecasts Construction Output 2010 (Euroconstruct November 2009) % Change Belgium Ð (3.2%) Denmark Ï +2.0% Finland Ð (5.1%) France Ð (0.7%) Germany Ï +0.8% Ireland Ð (21.7%) Italy Ð (2.0%) Netherlands Ð (9.3%) Poland Ï +9.6% Portugal Ð (9.3%) Spain Ð (9.7%) Switzerland Ï +0.4% United K
Slide 31: 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 s