CRH PLC · NYSE:CRH
CRH — FY2003 Earnings Presentation
29 slides from CRH's earnings presentation, Mar 2, 2004
Slide 1: Contents
CONTENTS 2003 Highlights - reported 2 2003 Highlights - constant currency 3 2003 Overview 4 Republic of Ireland 5 Britain & Northern Ireland 6 Mainland Europe - Materials 7 Mainland Europe - P&D 8 Americas - Materials 9 Americas - P&D 10 2003 Year-end Results, 2nd March 2004 US Distribution asbestos
Slide 2: 2003 Highlights Reported
2003 HIGHLIGHTS REPORTED 2003 2002 % Reported €m €m change Sales 11,080 10,794 +3% Operating profit before goodwill 1,045 1,048 - 2003 Year-end Results, 2nd March 2004 Profit before tax 864 856 +1% € cent € cent EPS before goodwill 136.2 132.5 +3% EPS after goodwill 121.9 119.2 +2% Cash EPS 223.4 21
Slide 3: 2003 Highlights Constant Currency
2003 HIGHLIGHTS CONSTANT CURRENCY 2003 2002 % At constant 2003 average rates €m €m change Sales 11,080 9,644 +15% Operating profit before goodwill 1,045 936 +12% 2003 Year-end Results, 2nd March 2004 Profit before tax 864 770 +12% € cent € cent EPS before goodwill 136.2 120.1 +13% EPS after goodwill
Slide 4: 2003 Overview
2003 OVERVIEW z Record results despite significant translation hit z Ireland: Similar profits; strong residential demand; but infrastructure slower in H2 z UK: Strong 13% advance in Sterling profits; ahead 3% in euro terms 2003 Year-end Results, 2nd March 2004 z Mainland Europe operating profit up 2
Slide 5: Republic of Ireland
REPUBLIC OF IRELAND Analysis of change Acquisitions €m 2003 2002 FX 2002 2003 Organic Sales +2% 732 714 +18 - - +2 +16 Op profit* -1% 130 131 -1 - - - -1 Op margin 17.8% 18.3% 2003 Year-end Results, 2nd March 2004 *excluding goodwill amortisation €0.3m (2002: €0.3m) and profit on disposal €3.4m (200
Slide 6: Britain & Northern Ireland
BRITAIN & NORTHERN IRELAND Analysis of change Acquisitions/Disposals €m 2003 2002 FX 2002 2003 Organic Sales -1% 692 699 -7 -59 +4 -6 +54 Op profit* +3% 57 56 +1 -5 +2 - +4 Op margin 8.3% 8.0% 2003 Year-end Results, 2nd March 2004 *excluding goodwill amortisation €5.1m (2002: €5.4m) and profit on di
Slide 7: Mainland Europe - Materials
MAINLAND EUROPE - MATERIALS Analysis of change AcquisitionsReorg. €m 2003 2002 FX ‘02 ‘03 costs Organic Sales +4% 1,007 967 +40 -43 +25 +37 - +21 Op profit* +6% 133 126 +7 -6 +3 +4 +6 - Op margin 13.2% 13.0% *excluding goodwill amortisation €20.2m (2002: €19.8m) and profit on disposal €1.2m (2002: €
Slide 8: Mainland Europe - P&D
MAINLAND EUROPE - P&D Analysis of change Acquisitions Reorg. €m 2003 2002 FX ‘02 ‘03 costs Organic Sales +28% 2,636 2,053 +583 -17 +215 +397 - -12 Op profit* +55% 166 107 +59 - +12 +39 - +8 Op margin 6.3% 5.2% *excluding goodwill amortisation €13.8m (2002: €8.8m) and profit on disposal €1.9m (2002 l
Slide 9: Americas - Materials
AMERICAS - MATERIALS Analysis of change Acquisitions €m 2003 2002 FX 2002 2003 Organic Sales -8% 2,831 3,072 -241 -504 +54 +202 +7 Op profit* -13% 291 336 -45 -55 +4 +23 -17 Op margin 10.3% 10.9% 2003 Year-end Results, 2nd March 2004 *excluding goodwill amortisation €17.9m (2002: €19.8m) and profit
Slide 10: Americas - P&D
AMERICAS - P&D Analysis of change Acquisitions €m 2003 2002 FX 2002 2003 Organic Sales -3% 3,182 3,289 -107 -527 +191 +194 +35 Op profit* -8% 268 292 -24 -46 +9 +23 -10 Op margin 8.4% 8.9% 2003 Year-end Results, 2nd March 2004 *excluding goodwill amortisation €18.2m (2002: €15.5m) and profit on disp
Slide 11: US Distribution Asbestos Claims
US DISTRIBUTION ASBESTOS CLAIMS z 251 claimants announced 30th September 2002 z 53 new claimants notified in last 17 months z 13 claims disposed of since September ‘02 for US$11,700 gross 2003 Year-end Results, 2nd March 2004 z Continuing to settle only on a minimal and pragmatic basis z 291 claiman
Slide 12: 2003 Europe Acquisitions
2003 EUROPE ACQUISITIONS z Europe Materials €58m Î Finland: modest expansion of aggregates and readymixed concrete operations Î Poland: development of a substantial lime business (Trzuskawica, Kujawy) z Europe P&D €1bn 2003 Year-end Results, 2nd March 2004 Î Cementbouw: 100% of Distribution/Building
Slide 13: 2003 Americas Acquisitions
2003 AMERICAS ACQUISITIONS z Americas Materials €320m Î Central Group: significant strengthening of Mid-West market positions May acquisition S.E. Johnson (SEJ), an excellent fit with existing OH/MI ops Subsequent swap of non-core SEJ Indiana assets for quarries in GA/AL/TN/MI 2003 Year-end Results,
Slide 14: 2003 Components of Change
2003 COMPONENTS OF CHANGE Profit on €M Sales EBITA Goodwill Interest EBT disposals 2002 reported 10,794 1,048 (70) 16 (138) 856 Exchange effects (1,150) (112) 7 - 19 (86) 2003 Year-end Results, 2nd March 2004 2002 at 2003 FX rates 9,644 936 (63) 16 (119) 770 Incremental Impact 2002 acquisitions 489
Slide 15: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS 2003 2002 Sales margins *EBITDA 13.6% 13.9% 2003 Year-end Results, 2nd March 2004 *EBITA (operating profit) 9.4% 9.7% EBIT 8.9% 9.2% *excluding profit on disposals Tax Rate 25.2% 26.5% EBIT Return on Average Net Assets 13.0% 13.3% 15
Slide 16: Cash Earnings per Share & Dividend
CASH EARNINGS PER SHARE & DIVIDEND % change € cent Reported 2003 FX rates EPS before goodwill amortisation 136.2 +3% +13% 2003 Year-end Results, 2nd March 2004 Depreciation per share 87.2 - Cash earnings per share 223.4 +2% +13% Dividend per share 28.1 +11% +11% 16
Slide 17: Funds Flow
FUNDS FLOW 2003 2002 Inflows €m €m Profit before tax 864 856 Depreciation 458 456 Goodwill amortisation 76 70 1,398 1,382 2003 Year-end Results, 2nd March 2004 Outflows Working capital (58) 90 Tax paid (103) (162) Dividends (150) (135) Capital expenditure (402) (367) Other (30) (21) (743) (595) Oper
Slide 18: Debt Ratios & Interest Cover
DEBT RATIOS & INTEREST COVER Y/E Y/E 2003 2002 Debt (€bn) 2.3 1.7 Shareholders’ funds (€bn) 4.8 4.8 2003 Year-end Results, 2nd March 2004 Debt/shareholders’ funds 48% 36% Debt/year-end market capitalisation 27% 28% Interest cover EBITDA/Interest 13.1 11.3 EBIT/Interest 8.4 7.3 18
Slide 19: 2004 Outlook - Europe
2004 OUTLOOK - EUROPE z Materials Î Ireland: record housing expected to moderate in H2, infrastructure picking up Î Finland/Switzerland: housing/infrastructure to offset softness in other sectors Î Poland: EU entry likely to sustain improvement evident in H2 of 2003 2003 Year-end Results, 2nd March
Slide 20: 2004 Outlook - Americas
2004 OUTLOOK - AMERICAS z Materials Î 2004 Federal highway budget US$33.6bn (+7%) Î Senate/House converging on a US$240bn 6-year ‘04-’09 highway proposal Î Negotiations with the Administration continuing 2003 Year-end Results, 2nd March 2004 Î Despite continuing state budget deficits expect similar
Slide 21: 2004 Outlook - Overall
2004 OUTLOOK - OVERALL z Economic growth in Europe generally subdued z US economy is recovering 2003 Year-end Results, 2nd March 2004 z Continued focus on cost effectiveness and operational performance z 2004 profits likely to be impacted by weakness of US$ …. z …. however 2003 acquisitions should c
Slide 22: Supplementary Information
2003 Year-end Results, 2nd March 2004 INFORMATION SUPPLEMENTARY 22
Slide 23: Analysis by Region
ANALYSIS BY REGION % €m 2003 2002 change Sales Ireland 732 714 +2% Britain & Northern Ireland 692 699 -1% 2003 Year-end Results, 2nd March 2004 Mainland Europe 3,635 3,020 +20% Americas 6,021 6,361 -5% Total 11,080 10,794 +3% Operating profit * Ireland 130 131 -1% Britain & Northern Ireland 57 56 +3
Slide 24: Analysis by Region
ANALYSIS BY REGION €m 2003 2002 Goodwill amortisation Ireland 0.3 0.3 Britain & Northern Ireland 5.1 5.4 2003 Year-end Results, 2nd March 2004 Mainland Europe 34.0 28.6 Americas 36.1 35.3 Total 75.5 69.6 Profit on disposal Ireland 3.4 7.8 Britain & Northern Ireland 3.5 2.8 Mainland Europe 3.1 3.3 Am
Slide 25: Analysis by Division
ANALYSIS BY DIVISION % €m 2003 2002 change Sales Europe Materials 1,984 1,927 +3% Europe P&D 3,083 2,506 +23% 2003 Year-end Results, 2nd March 2004 Americas Materials 2,831 3,072 -8% Americas P&D 3,182 3,289 -3% Total 11,080 10,794 +3% Operating profit* Europe Materials 273 266 +2% Europe P&D 213 15
Slide 26: Analysis by Division
ANALYSIS BY DIVISION €m 2003 2002 Goodwill amortisation Europe Materials 20.3 19.9 Europe P&D 19.1 14.4 2003 Year-end Results, 2nd March 2004 Americas Materials 17.9 19.8 Americas P&D 18.2 15.5 Total 75.5 69.6 Profit on disposal Europe Materials 6.3 11.7 Europe P&D 3.7 2.2 Americas Materials 2.8 3.3
Slide 27: Foreign Currency Rates
FOREIGN CURRENCY RATES Average Year-end euro 1 = 2003 2002 2003 2002 US Dollar 1.1312 0.9456 1.2630 1.0487 2003 Year-end Results, 2nd March 2004 Pound Sterling 0.6920 0.6288 0.7048 0.6505 Polish Zloty 4.3996 3.8574 4.7019 4.0210 Swiss Franc 1.5212 1.4670 1.5579 1.4524 Argentine Peso 3.3314 2.9514 3.
Slide 28: Euroconstruct Forecasts
EUROCONSTRUCT FORECASTS Construction output 2004 % Belgium Ï +2.3 Denmark Ï +1.9 Finland Ï +2.2 France Ï +0.1 2003 Year-end Results, 2nd March 2004 Germany Ð -0.3 Ireland Ð -4.0 Netherlands Ï +0.5 Poland Ï +3.3 Portugal Ð -4.8 Spain Ï +2.6 Sweden Ï +3.1 Switzerland Ð -0.9 United Kingdom Ï +3.3 28
Slide 29: Contact Us
CONTACT US CRH plc Investor Relations Belgard Castle Clondalkin 2003 Year-end Results, 2nd March 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 defin