Crh Plc · NYSE:CRH
Crh — FY2005 Earnings Presentation
20 slides from Crh's earnings presentation, Mar 7, 2006
Slide 1: CRH plc Year-end Results 2005
Liam O’Mahony, Chief Executive Myles Lee, Finance Director CRH plc Year-end Results 2005, 7th March, 2006 1
Slide 2: 2005 Highlights (IFRS)
2005 HIGHLIGHTS (IFRS) Sales €14,449m 13% Operating profit €1,392m 14% Profit before tax €1,279m 16% EPS Basic 186.7c 14% Cash EPS 292.5c 12% Dividend 39.0c 18% Like-for-like IFRS comparison CRH plc Year-end Results 2005, 7th March, 2006 2
Slide 3: 2005 Overview
2005 OVERVIEW Record sales and profits Strong organic growth and good contributions from acquisitions Europe: EBIT €676M, +7%: Materials higher, Products lower, Distribution similar Americas: EBIT €716M, +22%, profit advances in all three segments Development activity € 1.45Bn; Europe € 0.75Bn, Amer
Slide 4: Europe Materials
EUROPE MATERIALS Analysis of change Acquisitions IFRS €m 2005 2004 FX 2004 2005 Organic Sales +15% 2,646 2,307 +339 +28 +107 +24 +180 Op profit +18% 377 320 +57 +4 +17 +3 +33 Op margin 14.2% 13.9% Ireland: Another solid year with cement volumes up c.5% and profits ahead Finland: H2 recovery left cem
Slide 5: Europe Products
EUROPE PRODUCTS Analysis of change Acquisitions Reorg. IFRS €m 2005 2004 FX 2004 2005 costs Organic Sales +13% 2,533 2,245 +288 +9 +124 +137 - +18 Op profit* -8% 176 191 -15 - +11 +4 -7 -23 Op margin 6.9% 8.5% *including €10m reorganisation costs (2004: €3m) Concrete: Profits similar: contributions
Slide 6: Europe Distribution
EUROPE DISTRIBUTION Analysis of change Acquisitions Reorg. IFRS €m 2005 2004 FX 2004 2005 costs Organic Sales +15% 2,193 1,904 +289 +2 +186 +70 - +31 Op profit* +2% 123 121 +2 - +5 - - -3 Op margin 5.6% 6.4% *Operating profit from 2004 acquisitions is after €3m integration costs Ongoing reorganisati
Slide 7: Americas Materials
AMERICAS MATERIALS Analysis of change Acquisitions IFRS €m 2005 2004 FX 2004 2005 Organic Sales +12% 3,165 2,823 +342 - +54 +109 +179 Op profit +20% 328 274 +54 - +6 +8 +40 Op margin 10.4% 9.7% Highway markets generally favourable, Residential strong, Non-Residential improving Price increases and ti
Slide 8: Americas Products
AMERICAS PRODUCTS Analysis of change Acquisitions IFRS €m 2005 2004 FX 2004 2005 Organic Sales +12% 2,756 2,462 +294 +11 +58 +58 +167 Op profit +23% 308 251 +57 +2 +2 - +53 Op margin 11.2% 10.2% Strong 2005 Residential activity with continuing recovery in Non-Residential Rising input costs successfu
Slide 9: Americas Distribution
AMERICAS DISTRIBUTION Analysis of change Acquisitions IFRS €m 2005 2004 FX 2004 2005 Organic Sales +14% 1,156 1,014 +142 - +7 +50 +85 Op profit +27% 80 63 +17 - +1 +3 +13 Op margin 7.0% 6.2% Substantial H1 benefits from strong RMI demand post 2004 FL hurricanes H2: moderation in FL demand and absenc
Slide 10: Europe: 2005 Development €0.75Bn
EUROPE: 2005 DEVELOPMENT €0.75BN Significant Expansion of the Geographic Footprint Europe Materials € 0.35Bn Spain: 26.3% equity stake in Uniland; a leading cement producer in Catalonia CEE: Poland aerated concrete/paver bolt-ons, energy/fuel efficiency CX in Pol/Ukraine Finland: 2 precast acqs supp
Slide 11: Americas: 2005 Development €0.70Bn
AMERICAS: 2005 DEVELOPMENT €0.70BN New Platforms for Materials … Broad-based Bolt-on Activity Americas Materials € 0.42Bn Central: Major expansion in KY, VA and WV (Mountain/Bizzack), plus 5 bolt-ons West: 10 transactions across 7 states including first moves in MN Other: Acqs in Portland ME (New En
Slide 12: 2005 Components of Growth (IFRS)
2005 COMPONENTS OF GROWTH (IFRS) €M Sales EBIT Disposals Finance Assocs EBT 2004 reported (IFRS) 12,755 1,220 11 (146) 19 1,104 Exchange effects 50 6 - (2) - 4 2004 at 2005 FX rates 12,805 1,226 11 (148) 19 1,108 Incremental impact 2004 acquisitions 536 42 - (12) - 30 2005 acquisitions 448 18 - (14)
Slide 13: Key Financial Data (IFRS)
KEY FINANCIAL DATA (IFRS) Sales margins 2005 2004 EBITDA* 13.5% 13.6% EBIT* 9.6% 9.6% EBIT plus disposals 9.7% 9.6% Tax rate excl. Associates 21.8% 21.4% Return on Average Net Assets 15.0% 15.0% * excluding profit on disposals CRH plc Year-end Results 2005, 7th March, 2006 13
Slide 14: 2005 Funds Flow (IFRS)
2005 FUNDS FLOW (IFRS) 2005 2004 Inflows €M €M Profit before tax 1,279 1,104 Depreciation 556 516 Goodwill amortisation 9 4 1,844 1,624 Outflows Working capital (119) (78) Tax paid (260) (205) Dividends (185) (156) Capital expenditure (652) (551) Other (19) (29) (1,235) (1,019) Operating cash inflow
Slide 15: Debt Ratios & Interest Cover (IFRS)
DEBT RATIOS & INTEREST COVER (IFRS) Y/E Y/E 2005 2004 Debt (€Bn) 3.4 2.7 Shareholders’ funds (€Bn) 6.2 5.0 Market capitalisation (€Bn) 13.3 10.5 Debt/shareholders’ funds 55% 55% Debt/year-end market capitalisation 26% 26% Interest cover* EBITDA/Net Interest 12.7x 12.3x EBIT/Net Interest 9.0x 8.6x *
Slide 16: 2006 Markets Outlook - Europe
2006 MARKETS OUTLOOK - EUROPE Materials Group Ireland: Housing expected to ease, offset by good Non-Res & continued strong Infra Finland: Further growth forecast for Finland / Baltic region Poland: Positive construction activity levels, Infrastructure to benefit from EU funds Switz.: Stable construc
Slide 17: 2006 Segment Outlook - Europe
2006 SEGMENT OUTLOOK - EUROPE Materials Broadly positive outlook across our principal markets Cost saving CX projects beginning to feed through to bottom line Expect further organic growth and another year of progress Products Except for UK and Germany, market forecasts show growth With pick-up in N
Slide 18: 2006 Markets Outlook - Americas
2006 MARKETS OUTLOOK - AMERICAS Though regional variations, expect continued growth in key US economy Further progress for Canada and South America US Infrastructure Represents 65% Materials and 10% Products & Distribution demand Re-authorisation of the Federal Highway funding programme now in place
Slide 19: 2006 Segment Outlook - Americas
2006 SEGMENT OUTLOOK - AMERICAS Materials SAFETEA-LU and improving state finances should give stronger highway markets Pricing strategy will continue to focus on recovery of higher input costs, and … … with efficiency benefits and acquisition contributions, look to further progress in 2006 Products
Slide 20: 2006 Outlook - Overall
2006 OUTLOOK - OVERALL Strong profit and development performance in 2005 Recovery of significant energy cost increases will again be crucial Current outlook is on the whole positive with good momentum entering 2006 Gradual pick-up in European economies seems broadly under way US Residential may mode