Slide 1: 2004 Interim Results, 31st August 2004
2004 Interim Results, 31st August 2004 1
Slide 2: Contents
CONTENTS H1 2004 Highlights 3 H1 2004 Overview 4 Republic of Ireland 5 Britain & Northern Ireland 6 Mainland Europe - Materials 7 Europe Materials - 2004 Outlook 8 Mainland Europe - P&D 9 Europe P&D - 2004 Outlook 10 Americas - Materials 11 Americas Materials - 2004 Outlook 12 2004 Interim Results,
Slide 3: H1 2004 Highlights
H1 2004 HIGHLIGHTS 2004 2003 % €m €m change Sales 5,670 4,661 +22% Operating profit before goodwill 385 245 +57% 2004 Interim Results, 31st August 2004 Profit before tax 275 161 +71% € cent € cent EPS before goodwill 47.3 28.9 +64% EPS after goodwill 38.1 22.2 +72% Cash EPS 93.1 70.0 +33% Dividend 9
Slide 4: H1 2004 Overview
H1 2004 OVERVIEW z Significant H1 profit increase after modest adverse translation impact (-€4m) z Ireland: Continuing high residential demand; similar profits z UK: 8% operating profit increase with organic advance and stronger Sterling 2004 Interim Results, 31st August 2004 z Mainland Europe opera
Slide 5: Republic of Ireland
REPUBLIC OF IRELAND Analysis of change H1 Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +9% 386 353 +33 - - - +33 Op profit* -% 68 68 - - - - - Op margin 17.7% 19.4% *excluding goodwill amortisation €0.1m (2003: €0.1m) and profit on disposal €0.5m (2003: €2.2m) 2004 Interim Results, 31st Augu
Slide 6: Britain & Northern Ireland
BRITAIN & NORTHERN IRELAND Analysis of change H1 Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +7% 366 341 +25 +5 - +1 +19 Op profit* +8% 32 30 +2 +1 - - +1 Op margin 8.6% 8.6% *excluding goodwill amortisation €2.6m (2003: €2.6m) and loss on disposal €0.2m (2003: profit €3.0m) 2004 Interim Re
Slide 7: Mainland Europe - Materials
MAINLAND EUROPE - MATERIALS Analysis of change H1 Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +28% 567 444 +123 -14 +13 +75 +49 Op profit* +91% 63 33 +30 - +1 +7 +22 Op margin 11.1% 7.3% *excluding goodwill amortisation €10.1m (2003: €10.1m) and profit on disposal €0.8m (2003: €0.7m) 2004 I
Slide 8: Europe Materials - 2004 Outlook
EUROPE MATERIALS - 2004 OUTLOOK z Euroconstruct 2004 construction forecasts: Poland +3.5% Finland +3.8% Switzerland +1.6% Spain +4.3% Portugal -4.9% 2004 Interim Results, 31st August 2004 z Tougher H2 comparatives in Poland/Finland due to 2003 weather patterns z Continued strong Swiss performance he
Slide 9: Mainland Europe - P&D
MAINLAND EUROPE - P&D Analysis of change H1 Acquisitions Reorg. €m 2004 2003 FX 2003 2004 costs Organic Sales +56% 1,742 1,116 +626 -9 +599 +4 - +32 Op profit* +124% 121 54 +67 - +57 - - +10 Op margin 6.9% 4.9% *excluding goodwill amortisation €16.1m (2003: €4.6m) and profit on disposal €0.9m (2003:
Slide 10: Europe P&D - 2004 Outlook
EUROPE P&D - 2004 OUTLOOK z Euroconstruct 2004 construction forecasts: Netherlands -0.3% Belgium +3.6% Germany +1.0% France +1.1% Switzerland +1.6% Denmark +3.2% 2004 Interim Results, 31st August 2004 z Market backdrop for P&D more subdued than for Materials operations z Slow pick up in Dutch, Belgi
Slide 11: Americas - Materials
AMERICAS - MATERIALS Analysis of change H1 Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +4% 955 921 +34 -92 +38 +15 +73 Op loss* +21% (31) (39) +8 +4 -6 +2 +8 Op margin -3.2% -4.3% *excluding goodwill amortisation €9.5m (2003: €8.9m) and profit on disposal €3.4m (2003: €1.3m) 2004 Interim Re
Slide 12: Americas Materials - 2004 Outlook
AMERICAS MATERIALS - 2004 OUTLOOK z 2004 Federal Highway budget US$33.6bn (+7%) z State finances recovery somewhat uneven Generally good demand backdrop and backlogs across our operations 2004 Interim Results, 31st August 2004 z z Strong activity in Western regions through July/August z However, Nor
Slide 13: Americas - P&D
AMERICAS - P&D Analysis of change H1 Acquisitions €m 2004 2003 FX 2003 2004 Organic Sales +11% 1,654 1,486 +168 -142 +94 +57 +159 Op profit* +33% 132 99 +33 -11 +9 +8 +27 Op margin 8.0% 6.7% *excluding goodwill amortisation €10.3m (2003: €9.0m) and profit on disposal €1.0m (2003: loss €1.2m) 2004 In
Slide 14: Americas P&D - 2004 Outlook
AMERICAS P&D - 2004 OUTLOOK z Recent economic data suggests some slowdown in US growth z However, 2004 GDP forecast still a robust 4.5% 2004 Interim Results, 31st August 2004 z Residential continues strong, forecast housing starts 1.9m (+4%) z Gradual pick up in non-residential activity z Generally
Slide 15: US Distribution Asbestos Claims
US DISTRIBUTION ASBESTOS CLAIMS z No material change in position z 251 claimants announced 30th September 2002 z 83 new claimants notified in last 23 months 2004 Interim Results, 31st August 2004 z 18 claims disposed of since September 2002 for US$25,500 gross z 316 claimants outstanding at 27 Augus
Slide 16: H1 2004 Europe Acquisitions
H1 2004 EUROPE ACQUISITIONS z Europe Materials €465m Î Portugal: 49% stake in Secil; cement/aggregates/readymix (CRH sales €205m) Î Switzerland: major aggregates/readymixed concrete producer (annual sales €95m) 2004 Interim Results, 31st August 2004 Î Finland: producer of concrete pipes, piling and
Slide 17: H1 2004 Americas Acquisitions
H1 2004 AMERICAS ACQUISITIONS z Americas Materials €58m Î 7 bolt-on deals yielding annual incremental sales of US$42m Î New England: 2 deals enhancing aggregate reserves in Maine Î NY/NJ: acquisition of long-term sand and gravel reserves in Rochester, NY 2004 Interim Results, 31st August 2004 Î Cent
Slide 18: H1 2004 Components of Growth
H1 2004 COMPONENTS OF GROWTH Profit on €m Sales EBITA Goodwill Interest EBT disposals H1 2003 reported 4,661 245 (35) 6 (55) 161 Exchange effects (252) (6) 2 - - (4) 2004 Interim Results, 31st August 2004 H1 2003 at 2004 FX rates 4,409 239 (33) 6 (55) 157 Incremental impact 2003 acquisitions 744 61
Slide 19: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS H1 2004 2003 Sales margins *EBITDA 11.1% 9.9% 2004 Interim Results, 31st August 2004 *EBITA (operating profit) 6.8% 5.3% EBIT 6.0% 4.6% *excluding profit on disposals Tax rate 25% 26% 19
Slide 20: Cash Earnings per Share & Dividend
CASH EARNINGS PER SHARE & DIVIDEND € cent % change EPS before goodwill amortisation 47.3 +64% 2004 Interim Results, 31st August 2004 Depreciation per share 45.8 +11% Cash earnings per share 93.1 +33% Dividend per share 9.6 +17% 20
Slide 21: H1 Funds Flow
H1 FUNDS FLOW 2004 2003 Inflows €m €m Profit before tax 275 161 Depreciation 242 216 Goodwill amortisation 49 35 566 412 2004 Interim Results, 31st August 2004 Outflows Working capital (296) (300) Tax paid (80) (41) Dividends (111) (99) Capital expenditure (259) (218) Other (22) (9) (768) (667) Oper
Slide 22: Debt Ratios & Interest Cover
DEBT RATIOS & INTEREST COVER H1 Y/E H1 2003 2003 2004 2.3 2.3 Debt (€bn) 3.2 4.6 4.8 Shareholders’ funds (€bn) 5.1 2004 Interim Results, 31st August 2004 51% 48% Debt/shareholders’ funds 62% 33% 27% Debt/market capitalisation 35% Interest cover* 12.5 13.1 EBITDA/Interest 13.4 8.0 8.4 EBIT/Interest 8
Slide 23: H1 Summary & 2004 Outlook Overall
H1 SUMMARY & 2004 OUTLOOK OVERALL z Strong first half out-turn with: Î good organic bounce back from weather depressed 2003 Î significant incremental impact from 2003/2004 acquisitions Î modest adverse translation impact due to seasonally low H1 US Dollar profits 2004 Interim Results, 31st August 20
Slide 24: Supplementary Information
2004 Interim Results, 31st August 2004 INFORMATION SUPPLEMENTARY 24
Slide 25: Analysis by Region
ANALYSIS BY REGION H1 % €m 2004 2003 change Sales Ireland 386 353 +9% Britain & Northern Ireland 366 341 +7% Mainland Europe 2,301 1,560 +48% 2004 Interim Results, 31st August 2004 Americas 2,617 2,407 +9% Total 5,670 4,661 +22% Operating profit* Ireland 68 68 -% Britain & Northern Ireland 32 30 +8%
Slide 26: Analysis by Region
ANALYSIS BY REGION H1 €m 2004 2003 Goodwill amortisation Ireland 0.1 0.1 Britain & Northern Ireland 2.6 2.6 2004 Interim Results, 31st August 2004 Mainland Europe 26.2 14.7 Americas 19.8 17.9 Total 48.7 35.3 Profit on disposal Ireland 0.5 2.2 Britain & Northern Ireland (0.2) 3.0 Mainland Europe 1.7
Slide 27: Analysis by Division
ANALYSIS BY DIVISION H1 % €m 2004 2003 change Sales Europe Materials 1,076 913 +18% Europe Products 1,090 763 +43% Europe Distribution 895 578 +55% 2004 Interim Results, 31st August 2004 Americas Materials 955 921 +4% Americas Products 1,208 1,047 +15% Americas Distribution 446 439 +2% Total 5,670 4
Slide 28: Analysis by Division
ANALYSIS BY DIVISION H1 €m 2004 2003 Goodwill amortisation Europe Materials 10.1 10.1 Europe Products 11.3 6.8 Europe Distribution 7.5 0.5 2004 Interim Results, 31st August 2004 Americas Materials 9.5 8.9 Americas Products 8.1 6.9 Americas Distribution 2.2 2.1 Total 48.7 35.3 Profit on disposal Euro
Slide 29: Foreign Currency Rates
FOREIGN CURRENCY RATES H1 Average 30th June euro 1 = 2004 2003 2004 2003 US Dollar 1.2273 1.1049 1.2155 1.1427 2004 Interim Results, 31st August 2004 Pound Sterling 0.6735 0.6855 0.6708 0.6932 Polish Zloty 4.7324 4.2720 4.5236 4.4775 Swiss Franc 1.5531 1.4919 1.5242 1.5544 Argentine Peso 3.5641 3.32
Slide 30: Euroconstruct Forecasts
EUROCONSTRUCT FORECASTS Construction output 2004 % Belgium Ï +3.6 Denmark Ï +3.2 Finland Ï +3.8 France Ï +1.1 2004 Interim Results, 31st August 2004 Germany Ï +1.0 Ireland Ï +6.0 Netherlands Î -0.3 Poland Ï +3.5 Portugal Ð -4.9 Spain Ï +4.3 Sweden Ï +1.7 Switzerland Ï +1.6 United Kingdom Ï +3.2 30
Slide 31: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Clondalkin 2004 Interim Results, 31st August 2004 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 This results presentation contains certain forward-looking statements as defi