CRH PLC · NYSE:CRH
CRH — FY2001 Earnings Presentation
20 slides from CRH's earnings presentation, Mar 5, 2002
Slide 1: 2001 Year-End Results, 5 March, 2002
2001 Year-End Results, 5 March, 2002 Liam O'Mahony, Chief Executive Harry Sheridan, Finance Director 1
Slide 2: 2001 Highlights
2001 HIGHLIGHTS Sales € 10,444m + 18% Before goodwill After goodwill amortisation amortisation 2001 Year-End Results, 5 March, 2002 Trading profit € 1,035m + 11% € 976m + 10% Profit before tax € 862m + 16% € 803m + 15% Earnings per share 127.05c + 3% * 115.32c + 1% * Cash earnings per share 213.45c
Slide 3: 2001 Overview
2001 OVERVIEW l Geographic & sectoral balance underpins performance in difficult year l Weather-extended US season, group profits beat November update 2001 Year-End Results, 5 March, 2002 l Ireland: overall construction activity flat with weakening in H2 l UK: new house building remains weak, brick
Slide 4: Republic of Ireland
REPUBLIC OF IRELAND Exchange Acquisitions Disposals Organic 2001 Sales €704m + 5% + €33m - + € 8m - + €25m EBIT* €150m + 8% + €12m - + €1m + €11m - EBIT margin 21.3% (2000: 20.7%); excl. disposals 19.0% (2000: 19.9%) *after goodwill amortisation nil (2000: nil) & including profit on disposals €16.4m
Slide 5: Britain & Northern Ireland
BRITAIN & NORTHERN IRELAND Exchange Acquisitions Discontinued Disposals Organic 2001 Operations Sales €680m - 3% - €18m - €14m + €18m - €16m - - €6m EBIT* € 62m +10% + € 6m - € 1m + € 1m - + €5m + €1m EBIT margin 9.0% (2000: 8.0%); excl. disposals 8.3% (2000: 8.0%) *after goodwill amortisation €5.2m
Slide 6: Mainland Europe
MAINLAND EUROPE Exchange Acquisitions Disposals Closure Organic 2001 2000 2001 Costs Sales €2,652m + 31% + €621m + €25m + €483m + €136m - - - €23m EBIT* € 163m + 2% + € 3m + € 3m + € 31m + € 13m - €9m - €10m - €25m EBIT margin 6.2% (2000: 7.9%); excl. disposals 6.3% (2000: 7.6%) *after goodwill amor
Slide 7: Americas - Materials
AMERICAS - MATERIALS Exchange Acquisitions Disposals Organic 2001 2000 2001 Sales €3,168m + 17% + €456m + €85m + €48m + €237m - + €86m EBIT* € 330m + 30% + € 76m + € 8m - €16m + € 39m - €2m + €47m EBIT margin 10.4% (2000: 9.4%) *after goodwill amortisation €17.0m (2000: €12.4m) & including profit on
Slide 8: Americas - Products & Distribution
AMERICAS - PRODUCTS & DISTRIBUTION Exchange Acquisitions Disposals Organic 2001 2000 2001 Sales €3,240m + 17% + €482m + €86m + €252m + €100m - + €44m EBIT* € 271m - 3% - € 9m + € 9m + € 15m + € 7m - €2m - €38m EBIT margin 8.4% (2000: 10.1%) *after goodwill amortisation €12.9m (2000: €6.7m) & includi
Slide 9: Acquisitions and Investments of €1.1bn
2001 ACQUISITIONS AND INVESTMENTS OF €1.1bn l Europe Materials € 0.2 bn: è 25% stake in Mashav, Israel's sole cement producer è Bolt-on deals in Finland and Poland l Europe P&D € 0.2 bn: 2001 Year-End Results, 5 March, 2002 è Expansion of DIY in Benelux and Insulation activities into Nordic region è
Slide 10: Components of Growth
2001 COMPONENTS OF GROWTH Goodwill €m Sales EBITA Amortisation Interest EBT 2000 8,870 931 (43) (191) 697 Exchange effects 182 20 (1) (7) 12 Disposed businesses (16) - - - - 2001 Year-End Results, 5 March, 2002 2001 10,444 1,035 (59) (173) 803 Increase +18% +11% +15% 10
Slide 11: Components of Growth
2001 COMPONENTS OF GROWTH Goodwill €m Sales EBITA Amortisation Interest EBT 2000 8,870 931 (43) (191) 697 Exchange effects 182 20 (1) (7) 12 Disposed businesses (16) - - - - 2001 Year-End Results, 5 March, 2002 2000 acquisitions 801 42 (10) (38) (6) 2001 acquisitions 481 64 (5) (24) 35 2001 10,444 1
Slide 12: Components of Growth
2001 COMPONENTS OF GROWTH Goodwill €m Sales EBITA Amortisation Interest EBT 2000 8,870 931 (43) (191) 697 Exchange effects 182 20 (1) (7) 12 Disposed businesses (16) - - - - 2001 Year-End Results, 5 March, 2002 2000 acquisitions 801 42 (10) (38) (6) 2001 acquisitions 481 64 (5) (24) 35 Share issues
Slide 13: Cash Earnings per Share
CASH EARNINGS PER SHARE cent % Earnings per share before goodwill amortisation 127.05 +3 2001 Year-End Results, 5 March, 2002 Depreciation per share 86.40 +8 Cash earnings per share 213.45 +5 13
Slide 14: Funds Flow
2001 FUNDS FLOW 2001 2000 €m € m Inflows PBT 803 697 Depreciation 436 352 Goodwill amortisation 59 43 1,298 1,092 Outflows 2001 Year-End Results, 5 March, 2002 Working capital (61) (75) Tax paid (79) (140) Dividends (103) (82) Replacement capital expenditure (336) (320) Other (29) (23) (608) (640) O
Slide 15: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS 2001 2000 Sales margins EBITDA 14.1% 14.5% EBITA 9.9% 10.5% 2001 Year-End Results, 5 March, 2002 EBIT 9.3% 10.0% Tax Rate 27.0% 27.8% EBIT return on average net assets 14.0% 16.3% 15
Slide 16: Key Financial Data and Ratios
KEY FINANCIAL DATA AND RATIOS Y/E Y/E 2001 2000 Debt (€m) 1,893.7 2,619.8 2001 Year-End Results, 5 March, 2002 Shareholders' funds (€m) 4,775.3 3,128.1 Debt/shareholders' funds 39.7% 83.8% Debt/market capitalisation 18.3% 31.9% Interest cover EBITDA/Interest 8.5 6.7 EBIT/Interest 5.6 4.6 16
Slide 17: Outlook 2002
OUTLOOK 2002 Ireland Residential; expect slower H1, Budget changes should help H2 Commercial and industrial expected to moderate further National Development Plan to underpin infrastructure 2001 Year-End Results, 5 March, 2002 Benefits of recent price increases should help UK Outlook relatively flat
Slide 18: Outlook 2002
OUTLOOK 2002 Americas Residential continues strong Non-residential likely to decline Infrastructure: some state funding issues … 2001 Year-End Results, 5 March, 2002 … but underpinned by TEA-21 Energy costs, overhead reductions and improving prices are key Our balance should mitigate any individual
Slide 19: Summary
SUMMARY l Good 2001 performance in context of: è Difficult trading conditions in many markets è First-time inclusion of seasonal US winter losses 2001 Year-End Results, 5 March, 2002 è €10m European closure costs l Challenging 2002 outlook, but supported by: è Contributions from 2001/2002 acquisitio
Slide 20: Year-End Results, March, 2002
2001 Year-End Results, 5 March, 2002 Liam O'Mahony, Chief Executive Harry Sheridan, Finance Director 20