Crh Plc · NYSE:CRH
Crh — H1 2023 Earnings Presentation
40 slides from Crh's earnings presentation, 2023
Slide 1: Interim Results 2023
‘Interim Results 2023
Slide 2: Agenda
Agenda 2023 Interim Results Well Positioned for Future Growth 2023 Outlook US Primary Listing Update Interim Results 2023 1
Slide 3: Key Messages
Key Messages • Record H1 performance … EBITDA +14%; Operating Cash Flow +61% • Further margin expansion … +90bps • Accelerating share buybacks … $1bn in H1; further $1bn in Q3 • Continued delivery … expect FY EBITDA of ~$6.2bn • Overwhelming support for transition to US primary listing … effective 2
Slide 4: Financial Highlights
Financial Highlights Sales EBITDA Margin EPS Cash Flow $16.1bn $2.5bn 15.6% $1.58 $1.0bn +8% +14% +90bps +31% +61% Interim Results 2023 3
Slide 5: Trading Performance
Trading Performance
Slide 6: Americas Materials Solutions – Trading Performance
Americas Materials Solutions – Trading Performance • Continued strong performance & margin delivery Change … good commercial discipline & cost control $m Total LFL • Unique strategy delivering superior growth & performance Sales 6,059 +9% +8% • Robust Infrastructure funding backdrop EBITDA 925 +13%
Slide 7: Americas Building Solutions – Trading Performance
Americas Building Solutions – Trading Performance • Strong profit growth & further margin expansion Change … good contribution from recent acquisitions $m Total LFL • Positive momentum in key Non-Residential segments Sales 3,809 +21% +1% … water, energy & onshoring of manufacturing EBITDA 810 +25% +
Slide 8: Europe Materials Solutions – Trading Performance
Europe Materials Solutions – Trading Performance • Good delivery despite softer underlying activity levels Change & adverse weather conditions $m Total LFL • EBITDA & margin ahead of PY Sales 4,792 - +5% • Strong commercial management & disciplined cost control EBITDA 625 +13% +14% • 6 consecutive y
Slide 9: Europe Building Solutions – Trading Performance
Europe Building Solutions – Trading Performance • Performance impacted by subdued Residential activity Change & extended winter weather conditions $m Total LFL • Resilient Infrastructure & Non-Residential demand Sales 1,476 -4% -6% • Disciplined commercial management & cost control EBITDA 160 -15% -
Slide 10: Financial Performance & Capital Allocation
Financial Performance & Capital Allocation
Slide 11: Strong Organic Delivery & Acquisition Contribution
Strong Organic Delivery & Acquisition Contribution EBITDA +14% (18) 165 163 164 +7% +7% 165 $2,520m $2,210m H122 Acquisitions / Currency H123 Organic EBITDA (Divestments) Translation EBITDA Interim Results 2023 10
Slide 12: Strong & Flexible Balance Sheet
Strong & Flexible Balance Sheet 1.2x Net Debt / Trailing 12mth EBITDA 1.7 1.0 0.3 0.8 $6.9bn $5.1bn FY22 Cash Net M&A / Dividends / H123 Capex Net Debt Inflow Other Buybacks Net Debt Interim Results 2023 11
Slide 13: Efficient & Disciplined Capital Allocation
Efficient & Disciplined Capital Allocation $12bn $8bn Growth Investments Cash Returns $4bn Dividends Expansionary Capex $10bn Progressive Dividend M&A $20bn+ Expanding capacity in high growth markets 50+ years of uninterrupted dividend delivery Last 5 years Low risk, high returning investments
Slide 14: Strong Track Record of Financial Delivery
DRAFT Strong Track Record of Financial Delivery
Slide 15: Strong Delivery Through the Cycle
Strong Delivery Through the Cycle Sales EBITDA EBITDA Margin +37% +187% +900bps $32.7bn $5.6bn 17.2% $23.9bn 8.2% $2.0bn EPS Operating Cash Returns +319% +203% $4.4bn +750bps $3.50 13.3% 5.8% $1.5bn $0.84 Interim Results 2023 14
Slide 16: Consistent Outperformance vs. Sector Peers
Consistent Outperformance vs. Sector Peers EBITDA Growth EBITDA Margin (% Change 2017 - 2022) (2017 - 2022) +62% +550 +49% bps +33% -50bps -90bps -70bps +11% Global Global Peers US Peers Peer Avg. CRH US Peers Peer Avg. CRH Peers Operating Cash Returns (% Change 2017 - 2022) (2017 - 2022) +78% +260
Slide 17: Consistent Outperformance vs. Sector Peers
Consistent Outperformance vs. Sector Peers EBITDA Growth EBITDA Margin Leading positions in attractive, 9 consecutive years of margin high-growth markets improvement Differentiated strategy delivering Relentless focus on continuous business consistent outperformance improvement Unique mode
Slide 18: Well Positioned for Future Growth
DRAFT Well Positioned for Future Growth
Slide 19: US Infrastructure …
US Infrastructure … ~40% Americas sales • $1.2tn IIJA – the most transformative public investment programme since the 1930s • Underpinning 5+ years of robust infrastructure demand • Road & highway funding +50% • Significant focus on water, energy & technology … $200bn+ • Uniquely positioned … full-s
Slide 20: US Non-Residential …
US Non-Residential … ~30% Americas sales 100+ major projects across the US … supporting future investment & job creation • Onshoring activity to drive demand to 2030 & beyond • $200bn+ projects announced by world’s major corporations … bringing critical manufacturing back to the US … >2.5x historica
Slide 21: US Residential …
US Residential … ~30% Americas sales • Recent weakness driven by affordability challenges ~5m US … rising mortgage rates & home prices housing deficit • Long-term demand underpinned Record home equity levels • Structural under-build over the last decade Only 3 months of housing supply • Aging housin
Slide 22: The Largest Building Materials Business in Europe …
The Largest Building Materials Business in Europe … The global centre for construction innovation $200bn+ high-tech manufacturing projects & significant funding for critical infrastructure • The most regulated & technically advanced construction market in the world • Driving innovation & advancing s
Slide 23: Uniquely Positioned for Future Growth …
Uniquely Positioned for Future Growth … • CRH – a differentiated strategy … … processing essential materials (aggregates & cement) … & transforming them into innovative, value-added solutions … to improve the way we build our world • Strength of major markets to continue in H2 2023 … … & through 202
Slide 24: 2023 Outlook
2023 Outlook
Slide 25: 2023 Outlook
2023 Outlook EBITDA Operating Cash Net Debt / EBITDA ~$6.2bn ~$5bn 1.1x – 1.3x … another record year for CRH … Interim Results 2023 24
Slide 26: US Primary Listing Update
US Primary Listing Update
Slide 27: US Primary Listing Update
US Primary Listing Update Strong shareholder approval Capitalising on strong Increased commercial, (>95%) to transition to US growth opportunities operational & acquisition primary listing (IIJA, IRA, onshoring) opportunities 25th September 2023 8 weeks of shareholder ADR converts to US primary list
Slide 28: NYSE Listing Event
NYSE Listing Event Event Format • In-person investor presentation in New York (webcast option also available) • Hosted by CRH senior executive team • Monday 25 September 2023 • Registration details to follow on crh.com Interim Results 2023 27
Slide 29: Appendices
Appendices
Slide 30: Group Components of Performance
Group Components of Performance Continuing operations Sales Operating Profit on Finance Assoc. and Pre-tax $ million EBITDA revenue profit disposals costs (net) JV PAT1 profit H1 2022 14,998 2,210 1,385 7 (197) 8 1,203 Exchange effects (208) (18) (8) - 2 - (6) H1 2022 at 2023 rates 14,790 2,192 1,37
Slide 31: Americas Materials Solutions
Americas Materials Solutions Analysis of change $ million H1 2022 Exchange Acquisitions Divestments Organic H1 2023 % Change Sales revenue 5,546 (26) 111 - 428 6,059 +9% EBITDA 820 (2) 11 - 96 925 +13% Operating profit 405 - (1) - 106 510 +26% EBITDA/sales 14.8% 15.3% Operating profit/sales 7.3% 8.4
Slide 32: Americas Building Solutions
Americas Building Solutions Analysis of change $ million H1 2022 Exchange Acquisitions Divestments Organic H1 2023 % Change Sales revenue 3,150 (13) 626 - 46 3,809 +21% EBITDA 646 (3) 145 - 22 810 +25% Operating profit 534 (2) 97 - 4 633 +19% EBITDA/sales 20.5% 21.3% Operating profit/sales 17.0% 16.
Slide 33: Europe Materials Solutions
Europe Materials Solutions Analysis of change $ million H1 2022 Exchange Acquisitions Divestments Organic H1 2023 % Change Sales revenue 4,772 (146) 21 (86) 231 4,792 - EBITDA 555 (10) 3 2 75 625 +13% Operating profit 308 (4) - 7 72 383 +24% EBITDA/sales 11.6% 13.0% Operating profit/sales 6.5% 8.0%
Slide 34: Europe Building Solutions
Europe Building Solutions Analysis of change $ million H1 2022 Exchange Acquisitions Divestments Organic H1 2023 % Change Sales revenue 1,530 (23) 55 - (86) 1,476 (4%) EBITDA 189 (3) 4 - (30) 160 (15%) Operating profit 138 (2) (2) - (33) 101 (27%) EBITDA/sales 12.4% 10.8% Operating profit/sales 9.0%
Slide 35: Segment Financials
Segment Financials Americas Europe H1 2023 Sales EBITDA Sales EBITDA Materials Solutions 6,059 925 4,792 625 Essential Materials 2,062 2,478 Road Solutions 3,997 2,314 Building Solutions 3,809 810 1,476 160 Building & Infrastructure Solutions 1,248 1,159 Outdoor Living Solutions 2,561 317 Sub-total
Slide 36: Summary Financial Performance
Summary Financial Performance YoY Change YoY LFL Change H1 2023 Sales EBITDA Margin Sales EBITDA Margin Americas Materials Solutions +9% +13% +50bps +8% +12% +60bps Americas Building Solutions +21% +25% +80bps +1% +3% +40bps Americas +13% +18% +70bps +5% +8% +40bps Europe Materials Solutions - +13%
Slide 37: Materials Volumes & Prices
Materials Volumes & Prices Americas Europe YoY % Change Volume Price Volume Price Aggregates -2% +15% -8% +9% Asphalt -1% +13% -9% +15% Cement -5% +17% -12% +24% RMC -3% +14% -16% +23% Interim Results 2023 36
Slide 38: The Leader in Sustainable Construction
The Leader in Sustainable Construction Deeply embedded in all aspects of our business #1 The largest recycler 42mt Recycled materials in ‘22 36% Alternative fuels usage AAA MSCI ESG rating 30% CO2 reduction target by in North America – double since 2014 – leading the industry #1 in the sector 2030 (
Slide 39: Disclaimer / Forward-Looking Statements
Disclaimer / Forward-Looking Statements In order to utilise the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, CRH public limited company (the “Company”), and its subsidiaries (collectively, “CRH” or the “Group”) is providing the following cautionary
Slide 40: CRH plc Investor Relations
CRH plc Investor Relations Stonemason’s Way Rathfarnham Dublin 16 D16 KH51 Ireland Telephone: +353 1 404 1000 Email: ir@crh.com Website: www.crh.com Interim Results 2023 39