Slide 1: Interim Results 2022
Interim Results 2022
Slide 2: Key Messages
Key Messages • Good performance … further growth in sales, EBITDA & margin • Efficient & disciplined capital allocation … $3.8bn divestment of Building Envelope business … $2.8bn invested in solutions-focused acquisitions … Interim dividend +4%; share buyback ongoing • Strong & flexible balance shee
Slide 3: Financial Highlights
Financial Highlights Sales EBITDA Margin EPS $15.0bn $2.2bn 14.7% $1.21 +14% +21% +90bps +36% Interim Results 2022 2
Slide 4: Performance Driven by Integrated Solutions Strategy
Sustainability Performance Driven by Integrated Solutions Strategy + 200 bps Margin expansion • Uniquely integrating materials, products & services + 100 bps … integrated solutions ~65% of sales 0 bps • Differentiated strategy offsetting inflationary pressures … more deeply embedded with customers -
Slide 5: Solutions in Action
Solutions in Action • Large, complex infrastructure project; 16-miles, 4-lanes • End-to-end offering; design, manufacture, install, maintain, recycle • Integrating base materials, structural bridge elements, water management & utility infrastructure solutions Value creation for the customer … higher
Slide 6: Solutions in Action
Solutions in Action • Preferred partner on Europe’s largest infrastructure project • Providing materials, products, engineering & technical expertise to meet demanding project specifications • Leveraging Group-wide experience & solutions capabilities Value creation for the customer … higher profits,
Slide 7: Deliberate & Focused Execution of Strategy
Sustainability Deliberate & Focused Execution of Strategy … • Geographic focus … good balance between high growth & cash generative mature markets • Increased exposure to public construction … growth underpinned by dedicated infrastructure funding • Increased RMI exposure … more resilient through th
Slide 8: Consistent Value Creation Through The Cycle
Consistent Value Creation Through The Cycle EBITDA Cash Returns 8 consecutive years ~80% cash conversion Industry leading returns of margin expansion ~$28bn operating cash Doubled since 2013 … +910bps cumulative generated in last 10 years +650bps cumulative margin growth +14% CAG
Slide 9: Market Backdrop & Trading Performance
Market Backdrop & Trading Performance
Slide 10: Market Backdrop – North America
Market Backdrop – North America … ~75% of Group EBITDA Attractive sectors & end-markets (Sales exposures) • US Infrastructure robust ... federal funding underpinned next 5 years; state budgets strong ~40% ~50% • Resilient H1 Residential demand despite rising interest ~30% rate environment ~50% • Goo
Slide 11: Outperformance in North America
Outperformance in North America … … uniquely integrated & value-added solutions strategy delivering strong growth EBITDA +12% 2016 Rebased to 100 CAGR Leading market positions across materials, road Peers +8% solutions, utility infrastructure & outdoor living CAGR Differentiated strategy offerin
Slide 12: Americas Materials – Trading Performance
Americas Materials – Trading Performance • Good performance despite challenging weather $m LFL • Further margin progress amid significant cost headwinds ... strong commercial management & disciplined cost control Sales 5,546 +12% EBITDA 820 +12% • Market leading integrated solutions strategy continu
Slide 13: Building Products – Trading Performance
Building Products – Trading Performance • Good demand across all business lines … strong Infrastructure Products activity … further growth in Architectural Products $m LFL … Construction Accessories performing well Sales 4,022 +11% • Consistent delivery in recent years EBITDA 781 +14% … leading posi
Slide 14: Market Backdrop – Europe
Market Backdrop – Europe … ~25% of Group EBITDA Attractive sectors & end-markets (Sales exposures) • Resilient construction demand despite macro-economic volatility ~30% ~35% • Infrastructure growth across major markets ~35% • Good Residential activity ... new-build & RMI ~70% ~30% • Non-Residential
Slide 15: Leading Market Positions in Europe
Leading Market Positions in Europe … … significant opportunities for future growth & development EBITDA Peer +4% 2016 Rebased to 100 Avg. CAGR Western Europe – stable & developed … resilient RMI demand +4% … the centre of sustainable construction innovation CAGR Eastern Europe – higher growth ma
Slide 16: Europe Materials – Trading Performance
Europe Materials – Trading Performance • Positive underlying performance ... sales & EBITDA ahead • Good margin delivery despite inflationary pressures $m LFL • Eastern Europe – continued strong delivery Sales 5,430 +14% EBITDA 609 +14% • Western Europe – solid demand; underpinned by Infrastructure
Slide 17: Financial Performance & Capital Allocation
Financial Performance & Capital Allocation
Slide 18: Strong Organic Delivery
Strong Organic Delivery (51) 204 236 +13% LFL $2,210m EBITDA $1,821m H121 Organic Acquisitions / Currency H122 EBITDA* (Divestments) Translation EBITDA* * Continuing operations (excluding contribution from divested Building Envelope business) Interim Results 2022 17
Slide 19: Strong & Flexible Balance Sheet
Strong & Flexible Balance Sheet ~1.1x Pro-forma Net Debt / Trailing 12M EBITDA 1.9 3.3 $6.0bn 2.2 $6.2bn $4.3bn 2.2 1.6 H121 Cash Net M&A / Dividends / H122 Barrette Pro-forma Capex Net Debt Inflow Other Buybacks Net Debt Acquisition Net Debt (July 2022) Interim Results 2022 18
Slide 20: Efficient & Disciplined Capital Allocation
Efficient & Disciplined Capital Allocation Investing for Growth Increasing Cash Returns • Efficient re-allocation of capital … $3.8bn Building Envelope divestment (10.5x) • Progressive dividend policy … $1.9bn acquisition of Barrette Outdoor Living … 38 years stable or increasing (<8x post-synergies
Slide 21: Enhancing Outdoor Living Solutions with Barrette acquisition
Enhancing Outdoor Living Solutions with Barrette acquisition Leading outdoor living brands $1.9bn enterprise value <8x EBITDA post-synergies • Leveraging strengths of CRH’s outdoor living solutions … comprehensive product offering … industry leading brands … strong growth in existing APG business (A
Slide 22: 2022 Growth Investments
2022 Growth Investments … further developing our integrated solutions strategy 15 solutions-focused bolt-on acquisitions (~$0.9bn YTD at ~8x EBITDA) Barrette ($1.9bn) • Outdoor living solutions • Vertically integrated, • Engineered water characterised by quality, end-to-end infrastructure infrastruc
Slide 23: Sustainability
Sustainability
Slide 24: Leading the Industry on Decarbonisation
Sustainability Leading the Industry on Decarbonisation Industry-leading CO2 reduction … … targeting 25% reduction by 2030 Targeting 25% reduction in absolute 50mt Group-wide emissions by 2030 (vs. 2020) 40mt SBTi certified & aligned with ambition to be a net-zero business by 2050 30mt Detailed
Slide 25: Leading the Industry on Circularity
Sustainability Leading the Industry on Circularity Materials recycling doubled since 2014 Enhancing value through circularity 40mt ~40 Global leader in fossil fuel substitution 30mt #1 recycler in North America 20mt ~20 ~25% of every mile of road we build is from 10mt recycled materials … ambi
Slide 26: Investing in Innovative & Sustainable Building Solutions
Investing in Innovative & Sustainable Building Solutions $250m Collaborating with customers to develop more value-added committed for new solutions & building practices innovation fund Uniquely integrating 46% materials, products & services across the value chain & construction lifecycle >60 ongoing
Slide 27: Outlook
Outlook
Slide 28: 2022 Outlook
2022 Outlook • Outlook positive in a challenging cost environment • North America – good underlying demand amid inflationary pressures • Europe – activity levels resilient despite significant energy cost volatility & ongoing conflict in Ukraine • Focused on commercial management, cost control & cont
Slide 29: Focused on Delivering Through the Cycle
Focused on Delivering Through the Cycle … Leading positions Reduced cyclicality Strongest balance sheet in attractive markets ~50% from publicly funded in CRH history ~75% North America; ~25% Europe construction; ~50% RMI; ~1.1x Pro-forma Integrated solutions strategy delivering flexible cost
Slide 30: Appendices
1 8 Appendices
Slide 31: Materials Volumes & Prices
Materials Volumes & Prices Americas Materials Europe Materials YoY % Change Volume Price Volume Price Aggregates -1% +9% -3% +11% Asphalt +10% +15% -7% +14% Cement +1% +11% -7%1 +21% RMC -6% +12% +3% +15% 1 Europe Materials cement volumes +4% excluding the Philippines and Ukraine. Interim Results 20
Slide 32: Group Components of Performance (Continuing Operations)
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 2021 13,167 1,821 1,025 100 (206) 10 929 Exchange effects (490) (51) (25) (1) 8 (1) (19) H1 2021 at 2022 rates 12,677 1
Slide 33: Americas Materials
Americas Materials Analysis of change $ million H1 2021 Exchange Acquisitions Divestments Organic H1 2022 % Change Sales revenue 4,750 (6) 290 (52) 564 5,546 +17% EBITDA 730 (1) 13 (12) 90 820 +12% Operating profit 348 - (30) (10) 97 405 +16% EBITDA/sales 15.4% 14.8% Operating profit/sales 7.3% 7.3%
Slide 34: Building Products (Continuing Operations)
Building Products (Continuing Operations) Analysis of change $ million H1 2021 Exchange Acquisitions Divestments Organic H1 2022 % Change Sales revenue 3,259 (67) 476 (4) 358 4,022 +23% EBITDA 506 (1) 203 - 73 781 +54% Operating profit 382 - 184 - 70 636 +66% EBITDA/sales 15.5% 19.4% Operating profi
Slide 35: Europe Materials
Europe Materials Analysis of change $ million H1 2021 Exchange Acquisitions Divestments Organic H1 2022 % Change Sales revenue 5,158 (417) 42 (15) 662 5,430 +5% EBITDA 585 (49) 1 (1) 73 609 +4% Operating profit 295 (25) (1) - 75 344 +17% EBITDA/sales 11.3% 11.2% Operating profit/sales 5.7% 6.3% Inte
Slide 36: Summary Financial Performance
Summary Financial Performance YoY LFL Change Sales EBITDA Margin Americas Materials +12% +12% +10bps Building Products +11% +14% +50bps Europe Materials +14% +14% - Group +12% +13% +10bps Interim Results 2022 35
Slide 37: 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”) are providing the following cautionary
Slide 38: 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 2022 37