Slide 1: Interim Management Statement November 2014
Interim Management Statement 11 November 2014
Slide 2: Agenda
Agenda Trading Overview Strategy & Outlook Appendices CRH plc, Interim Management Statement, November 2014 1
Slide 3: CRH – Business Overview
CRH – Business Overview Moderating trends in Europe after a strong H1 On-going positive momentum in the US; increasing demand Improved margins and returns 2014 EBITDA guidance confirmed CRH plc, Interim Management Statement, November 2014 2
Slide 4: Markets in Brief – Europe Backdrop
Markets in Brief – Europe Backdrop Stalled or mixed recovery? Overall, markets stabilising… …some still weak, others gathering momentum High debt levels constraining construction activity Signs of further EU action to support Eurozone economies CRH – Key markets resilient; CH, Benelux, DE, F
Slide 5: Markets in Brief – Europe Materials & Products
Markets in Brief – Europe Materials & Products Steady performance in key Heavyside markets Switzerland - strong volumes continue Poland - profit ahead; volumes up, pricing competitive Ukraine - resilient amid political turmoil Benelux - markets stabilising Finland - softer markets as expec
Slide 6: Markets in Brief – Europe Distribution
Markets in Brief – Europe Distribution Benefiting from strong positions in key RMI growth markets Belgium - overall stable as improving non-res offsets softer Q3 res Netherlands - signs of improving sentiment Germany - markets weaker but remains ahead Switzerland - continued competitive back
Slide 7: Trading Overview – CRH Europe
Trading Overview – CRH Europe Overall markets stabilising Good delivery in key markets underpins performance Positive impact from initiatives undertaken in previous cycle Expect FY EBITDA to be c.10% ahead (2013: €583m) CRH plc, Interim Management Statement, November 2014 6
Slide 8: Markets in Brief – Americas Backdrop
Markets in Brief – Americas Backdrop Infrastructure Overall US Highway funding down to $100bn State proportion increased to $60bn vs. historical $55bn Growing economy, more jobs, improving res, non-res … demands increased spend Non-residential 2014 expected to grow by c.6%; mainly office/com
Slide 9: Markets in Brief – Americas Operations
Markets in Brief – Americas Operations Materials Strong volume growth for all products in all key regions Aggs: Good leverage on better volumes Asphalt: Benefits from better volumes and stable input costs RMC: Pricing and margins ahead on higher input costs Double digit % increase in const
Slide 10: Markets in Brief – Americas Operations
Markets in Brief – Americas Operations Products Good recovery following weather-impacted H1 Continued growth in res and non-res markets Strongest gains in sunbelt and western regions Q3 margins ahead on operating efficiencies & good cost control Distribution Positive organic growth trend c
Slide 11: Trading Overview – CRH Americas
Trading Overview – CRH Americas Underlying business and economic environment remains upbeat Overall 2014 construction spend c.3% ahead; CRH LFL sales +5% Delivering good operating leverage and improved returns Expect FY EBITDA to be c.10% ahead (2013: €892m) CRH plc, Interim Management Statement, No
Slide 12: Margins & Returns Ahead …
Margins & Returns Ahead … EBITDA Margin H1 2014 9M 2014 Returns Europe Materials & Products Europe Distribution Americas Materials Americas Products Americas Distribution Group CRH plc, Interim Management Statement, November 2014 11
Slide 13: Agenda
Agenda Trading Overview Strategy & Outlook Appendices CRH plc, Interim Management Statement, November 2014 12
Slide 14: Strategic Update
Strategic Update Portfolio analysis complete … €1.5-2bn disposals identified Divestments … 30+ processes underway … estimated c.€0.4bn proceeds 2014 Acquisitions … refined portfolio focuses acquisition strategy Integration of European Materials and Products businesses complete CRH plc, Interim Manag
Slide 15: Outlook
Outlook 2014 EBITDA guidance confirmed Europe stabilising; modest if mixed recovery Americas ahead as positive momentum continues Strong balance sheet - significant capacity for future growth CRH plc, Interim Management Statement, November 2014 14
Slide 16: Restoring margins and returns to peak in the coming cycle
Restoring margins and returns to peak in the coming cycle CRH plc, Interim Management Statement, November 2014 15
Slide 17: Agenda
Agenda Trading Overview Strategy & Outlook Appendices CRH plc, Interim Management Statement, November 2014 16
Slide 18: Appendix – CRH Group
Appendix – CRH Group LFL Sales Europe Americas Group H1 +6% +4% +5% Q3 -2% +6% +3% Cuml 9M +3% +5% +4% CRH plc, Interim Management Statement, November 2014 17
Slide 19: Appendix – Europe
Appendix – Europe LFL Sales Materials Products Distribution Total H1 +7% +9% +4% +6% Q3 -3% - -4% -2% Cuml 9M +2% +7% +1% +3% CRH plc, Interim Management Statement, November 2014 18
Slide 20: Appendix – Americas
Appendix – Americas LFL Sales Materials Products Distribution Total H1 +4% +5% +2% +4% Q3 +6% +7% +9% +6% Cuml 9M +5% +5% +5% +5% H1 LFL vols: Aggs +4%; Asphalt +3%; RMC +7% Q3 LFL vols: Aggs +8%; Asphalt +3%; RMC +6% CRH plc, Interim Management Statement, November 2014 19
Slide 21: Appendix – 2014 Europe Outlook
Appendix – 2014 Europe Outlook FY EBITDA Indications Materials Products Distribution Total 2013 Actual €278m €119m €186m €583m 2014 Expected No change Up c.50% No change Up c.10% CRH plc, Interim Management Statement, November 2014 20
Slide 22: Appendix – 2014 Americas Outlook
Appendix – 2014 Americas Outlook FY EBITDA Indications Materials Products Distribution Total 2013 Actual $740m $327m $118m $1,185m 2014 Expected increase <10% >10% c.10% c.10% CRH plc, Interim Management Statement, November 2014 21
Slide 23: Appendix – 2014 Non-trading Items Outlook
Appendix – 2014 Non-trading Items Outlook FY Indications D&A Prof on Disposals JV & Assoc PAT Finance Costs 2013 Actual €725m* €26m €61m* €297m 2014 Expected c.5% lower No change c.10% lower No change Cash Flow: Continued strong cash flow; €0.5bn reduction in net debt Net Debt: c.1.5x EBITDA expecte
Slide 24: Appendix – European Structure 2014
Appendix – European Structure 2014 CRH Europe Old Structure Materials Products Distribution c.26% Revenue c.28% Revenue c.46% Revenue CRH Europe New Structure Lightside Heavyside Distribution c.10% c.44% Revenue c.46% Revenue Revenue CRH plc, Interim Management Statement, November 2014 23
Slide 25: 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 Website: www.crh.com This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such statements invol