Slide 1: CRH plc 2008 Preliminary Results
Myles Lee, Chief Executive Glenn Culpepper, Finance Director CRH plc, 2008 Preliminary Results, 3rd March 2009 1
Slide 2: Contents
Contents 2008 Results Overview 2 Segment Performance 7 Financial Overview 16 Outlook 23 Contact Us 27 CRH plc, 2008 Preliminary Results, 3rd March 2009 1
Slide 3: 2008 Results Overview
2008 Results Overview CRH plc, 2008 Preliminary Results, 3rd March 2009 2
Slide 4: 2008 Key Points
2008 Key Points Robust delivery in a year of significant challenges Results in line with Nov IMS / Jan Trading Update guidance Revenue flat, EBITDA down -7%, Operating Profit down -12% Operating Profit margin 8.8% versus 9.9% in 2007 PBT down -14%, EPS -11% reflecting buyback & lower % tax c
Slide 5: Long Term Dividend Delivery
Long Term Dividend Delivery 25 consecutive years of dividend growth March ’07 – Indicated phased reductions in dividend cover From 4.8x (2005) … to 4.3x (2006) … to a target of c3.5x for 2008 Actual 2008 cover 3.4x, Dividend €0.69 vs. €0.39 in 2005 Current strong cover level allows for signi
Slide 6: 2008 Development Activity
2008 Development Activity Curtailed in response to economic environment 2008 spend c€1 billion – H1 €0.7 billion, H2 €0.3 billion H2 spend deliberately curtailed in a deteriorating economic environment Main transactions … ¾ 50% MHIL; Indian cement manufacturer (3.2 mtpa current capacity) ¾ 100
Slide 7: 2008 Capital Expenditure
2008 Capital Expenditure Also being adjusted to reflect demand environment 2008 Capex of c€1 billion (2007: €1 billion) … … including €0.25bn (2007: €0.1bn) on major cement projects ¾ Ireland: 1.3 mtpa line - part replacement; commissioned ¾ US: 50% JV; 1.1 mtpa greenfield plant; in commissionin
Slide 8: Segment Performance
Segment Performance CRH plc, 2008 Preliminary Results, 3rd March 2009 7
Slide 9: Europe - Overall
Europe - Overall Solid CEE performance; generally weaker elsewhere Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales +4% 11,194 10,714 +480 (434) +563 +411 (60) Op. profit (5%) 1,049 1,106 (57) (130) +32 +41 - Op. margin 9.4% 10.3% Operating profit excludes profit on disposals Materials
Slide 10: Europe Materials
Europe Materials Operating Profit up 8%; good margin progress Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales +1% 3,696 3,651 +45 (205) +194 +74 (18) Op. profit +8% 631 586 +45 +4 +19 +16 +6 Op. margin 17.1% 16.1% Operating profit excludes profit on disposals € Op. Profit 2008 Ireland W.
Slide 11: Europe Products
Europe Products Operating Profit down 27% after €35m rationalisation Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales +2% 3,686 3,628 +58 (143) +100 +172 (71) Op. profit (27%) 224 308 (84) (99) +6 +16 (7) Op. margin 6.1% 8.5% Operating profit excludes profit on disposals € Op. Profit 2008
Slide 12: Europe Distribution
Europe Distribution Operating Profit down 8%; margin lower Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales +11% 3,812 3,435 +377 (86) +269 +165 +29 Op. profit (8%) 194 212 (18) (35) +7 +9 +1 Op. margin 5.1% 6.2% Operating profit excludes profit on disposals € Op. Profit W. 2008 Benelux S
Slide 13: Americas - Overall
Americas - Overall US$ Operating Profit down 13%; balance limits downside Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales (6%) 9,693 10,278 (585) (814) +809 +119 (699) Op. profit (19%) 792 980 (188) (171) +38 +12 (67) Op. margin 8.2% 9.5% Operating profit excludes profit on disposals M
Slide 14: Americas Materials
Americas Materials High input costs drove strong pricing; negative for volumes Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales (8%) 5,007 5,445 (438) (464) +332 +65 (371) Op. profit (19%) 462 570 (108) (86) +9 +8 (39) Op. margin 9.2% 10.5% Operating profit excludes profit on disposals US
Slide 15: Americas Products
Americas Products APG/Precast most affected; other operations ahead Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales (8%) 3,243 3,510 (267) (291) +223 +39 (238) Op. profit (30%) 238 340 (102) (94) +11 +4 (23) Op. margin 7.3% 9.7% Operating profit excludes profit on disposals US$ Op. Profi
Slide 16: Americas Distribution
Americas Distribution Successful organic delivery + acquisitions; margins ahead Acquisitions €m 2008 2007 Change Organic 2007 2008 FX Sales +9% 1,443 1,323 +120 (59) +254 +15 (90) Op. profit +31% 92 70 +22 +9 +18 - (5) Op. margin 6.4% 5.3% Operating profit excludes profit on disposals US$ Op. Profit
Slide 17: Financial Overview
Financial Overview CRH plc, 2008 Preliminary Results, 3rd March 2009 16
Slide 18: 2008 Components of Performance
2008 Components of Performance FX effects reduced profits by c3% Acquisitions €m 2008 2007 Change Organic 2007 2008 Exchange Sales 20,887 20,992 (105) (1,248) +1,372 +530 (759) Operating Profit 1,841 2,086 (245) (301) +70 +53 (67) Profit on Disposals 69 57 +12 +13 - - (1) Trading Profit 1,910 2,143
Slide 19: Funds Flow
Funds Flow Robust operating cash inflow … 2008 2007 2006 €m €m €m Inflows Profit before tax 1,628 1,904 1,602 Depreciation 781 739 664 Amortisation of intangibles 43 35 25 2,452 2,678 2,291 Outflows Working capital (62) 227 * (76) Tax Paid (322) (388) (378) Dividends (369) (318) (222) Capital expend
Slide 20: Funds Flow
Funds Flow ... limits Debt increase after Buyback, Dev Cx, Translation 2008 2007 2006 €m €m €m Operating cash inflow 571 1,090 732 Acquisitions and investments (1,072) (2,227) (2,311) Disposals 168 156 252 * Share issues 28 104 112 Share purchases (383) (31) (15) Translation (240) 237 187 Debt incre
Slide 21: Focussed on Cash Generation
Focussed on Cash Generation Traditional strong H2 cash inflow €m 2008 H2 H1 Profit before tax 1,628 1,022 606 Depreciation/Amortisation 824 432 392 Working capital (62) 544 (606) Tax Paid (322) (173) (149) Dividends (369) (110) (259) Capital expenditure (1,039) (479) (560) Other (89) (88) (1) Operat
Slide 22: Focussed on Debt Management
Focussed on Debt Management Pro-active 2008 Financing Programme €3 billion refinancing initiatives in 2008: ¾ €0.8 billion of new long-term funding (Stg£ 250m and US$ 650m Bonds) ¾ €0.5 billion of new bank term finance ¾ €1.7 billion of facility renewals and extensions Unutilised committed facil
Slide 23: Focussed on Debt Management
Focussed on Debt Management Well positioned in terms of debt maturity schedule Breakdown of Net Debt Maturity Profile € Bn Total YE 2008 € Bn Gross Debt 7.0* 2009 1.1 Gross Cash (0.9) 2010 1.3 Net Debt 6.1 2011 0.8 2012 1.0 2013 0.6 Breakdown of Gross Debt Beyond 2013 2.2 € Bn YE 2008 Total 7.0 Outs
Slide 24: Outlook
Outlook CRH plc, 2008 Preliminary Results, 3rd March 2009 23
Slide 25: 2009 Europe Outlook
2009 Europe Outlook Materials ¾ Ireland & Spain set to fall further; less severe declines in Finland & Portugal ¾ Switzerland again forecast to perform robustly ¾ Poland Infra likely to be offset by Res/Non-Res declines; Ukraine lower ¾ Currency weakness in Poland/Ukraine will have negative effect
Slide 26: 2009 Americas Outlook
2009 Americas Outlook Materials ¾ Infra component of recent stimulus package should benefit H2 ¾ Res/Non-Res demand expected to face further erosion ¾ Moderation in bitumen/energy suggests more stable cost levels in 2009 ¾ Continuing focus on costs, efficiency and price improvement ¾ Should partly
Slide 27: Overall Outlook
Overall Outlook Twin goals – Performance and Growth Outlook for 2009 is extremely challenging In addition, most severe winter for many years in both Europe and US H1 expected to be sharply lower – tough comparatives versus H1 2008 Lower energy costs, interest rate reductions and US stimulus
Slide 28: 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