Crh Plc · NYSE:CRH
Crh — Investor Day (November 2010)
16 slides from Crh's investor day presentation, November 2010
Slide 1: CRH Investor Day 2010 Finance Review
CRH Investor Day 2010 FINANCE REVIEW M A E V E C A RTO N F I N A N C E D I R EC TO R
Slide 2: CRH Finance
2 CRH Finance y CASH GENERATION y BALANCE SHEET STRENGTH y DISCIPLINE & RETURNS CRH Investor Day, November 2010
Slide 3: Cash Generation
3 Cash Generation y Key priority throughout CRH y Key CRH characteristics: { Low level of minorities ‐ strong ability to control own cash { High rate of conversion of EBITDA to Cash y Specific actions by CRH: { On‐going focus on tight control of Working Capital { Scaling of Capital Expenditure to ma
Slide 4: Trade Working Capital
4 Trade Working Capital TWC % Sales 30% 25% 20% 15% 10% 5% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CRH Source: Bloomberg 1% point improvement in 2009 … Continued Focus on Inventory CRH Investor Day, November 2010
Slide 5: Capital Expenditure – Investment Through The Cycle
5 Capital Expenditure – Investment Through The Cycle Generally multiple small projects … can be curtailed for a period without limiting the business CRH Investor Day, November 2010
Slide 6: Cash Generation from EBITDA
6 Cash Generation from EBITDA FCF % EBITDA 100% 80% 60% 40% 20% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CRH Source: Bloomberg Strong Cash Generation with a high FCF % EBITDA … CRH a Sector Leader CRH Investor Day, November 2010
Slide 7: Cash Flow
7 Cash Flow ‘09 vs. ‘07 €m 2007 2008 2009 Change PBT 1,904 1,628 732 ‐62% Depreciation / Amortisation 774 824 848 Capital Expenditure (1,028) (1,039) (532) Working Capital 227 (62) 661 Dividend (gross) (318) (369) (386) Tax (388) (322) (104) Other (81) (89) (59) Operating Cash Inflow 1,090 571 1,160
Slide 8: CRH Finance
8 CRH Finance y CASH GENERATION y BALANCE SHEET STRENGTH y DISCIPLINE & RETURNS CRH Investor Day, November 2010
Slide 9: Balance Sheet Strength – Goodwill % Total Assets
9 Balance Sheet Strength – Goodwill % Total Assets Goodwill % Total Assets 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CRH Source: Bloomberg Low Goodwill % Total Assets reflects disciplined deal valuations … …even in the good times CRH Investor Day, November 2010
Slide 10: Balance Sheet Strength – Credit Metrics
10 Balance Sheet Strength – Credit Metrics Mkt Cap Net Debt / S&P €bn EBITDA ‘10F Rating 19 1.7x BBB 16 2.8x BBB 13 3.8x BBB-/Neg 10 2.1x BBB+ 8 3.5x BB- /Pos 7 6.8x B 4 6.4x BBB- 3 2.6x BBB+ /Neg Source: Davy Committed to maintaining our investment grade rating CRH Investor Day, November 2010
Slide 11: Balance Sheet Strength – Net Debt to EBITDA
11 Balance Sheet Strength – Net Debt to EBITDA Historic Net Debt to EBITDA 7.0x 6.0x 5.0x 4.0x CRH Covenant 3.0x 2.0x 1.0x 0.0x 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CRH Source: Bloomberg Well below covenant level … CRH Investor Day, November 2010
Slide 12: Balance Sheet Strength – Debt Maturity Profile
12 Balance Sheet Strength – Debt Maturity Profile €Bn September 2010 (incl. JVs) 1.8 1.6 Gross Debt: €5.4Bn 1.4 Gross Cash: (€1.4Bn) 1.2 Net Debt: €4.0Bn 1.0 0.8 0.6 0.4 0.2 0.0 Cash reserves/undrawn committed facilities of over €2.9Bn CRH Investor Day, November 2010
Slide 13: CRH Finance
13 CRH Finance y CASH GENERATION y BALANCE SHEET STRENGTH y DISCIPLINE & RETURNS CRH Investor Day, November 2010
Slide 14: CRH – Industry-leading Returns on Invested Capital
14 CRH – Industry‐leading Returns on Invested Capital ROIC Return on Invested Capital 16% Industry Peers CRH 12% 8% 4% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Bloomberg Delivering long‐term out‐performance ... through the cycle CRH Investor Day, November 2010
Slide 15: Group Margins
15 Group Margins EBITDA % EBIT % Upside leverage to margins as markets normalise CRH Investor Day, November 2010
Slide 16: Key Take-Aways
16 Key Take‐Aways y Discipline and focus on cash generation y Prudent management of balance sheet y Good credit metrics and investment grade rating y Long term value creation and delivery of returns CRH Investor Day, November 2010