Breedon Group Plc · LSE:BREE
Breedon — FY2010 Earnings Presentation
27 slides from Breedon's earnings presentation, Mar 30, 2011
Slide 1: 2010 Results Presentation
2010 Results Presentation 30 March 2011 Essential Products ! Scarce Resources
Slide 2: Introduction
Introduction Peter Tom
Slide 3: Overview
Overview • £160m acquisition of Breedon Holdings completed September 2010 • Company in better shape than anticipated • Immediate action taken on board, management, health & safety, operational improvements, group rebranding • Near 100% take-up of employee free share offer • FY in line with expectati
Slide 4: Financial Review
Financial Review! Ian Peters!
Slide 5: Highlights (statutory)
Highlights (statutory) 2010 2009 Results before non-underlying items £’000 £’000 Revenue 42,679 - EBITDA 3,307 (927) Loss from Operations (289) (927) Loss for the year (1,561) (829) Basic EPS* (0.58p) (0.61p) * weighted average number of shares = 268,785,839! All turnover has been generated since 6t
Slide 6: Closing Balance Sheet
Closing Balance Sheet 2010 Actual £’000 Tangible Fixed Assets 150,207 Investments 1,070 Goodwill arising on Breedon 3,738 Intangible Assets 341 Total Non-current Assets 155,356 Current Assets 36,990 Creditors Less than One Year (35,632) Net Current Assets 1,358 Creditors Greater than One Year (99,88
Slide 7: Analysis of Net Debt
Analysis of Net Debt 2010 Dec 2010 June Actual Pro forma £’m £’m Term Loans 67.0 64.3 Bank overdrafts 1.6 8.8 Cash (3.2) (3.8) Bank Debt 65.4 69.3 Finance Leases (over 1 year) 21.4 24.1 Finance leases (less than 1 year) 5.5 5.8 Finance Leases 26.9 29.9 Net Debt 92.3 99.2 Page "7!
Slide 8: Analysis – Profit & Loss (pro forma 12 months)
Analysis – Profit & Loss (pro forma 12 months) 2010 2009 Variance Pro forma Pro forma v 2009 £’000 £’000 % Turnover 143,831 135,426 6.2% EBITDA 13,725 16,502 (17.0)% Depreciation & Amortisation (12,284) (13,706) (10.0)% Underlying Operating Profit 1,441 2,796 (48.5)% Share of Associate 622 952 (34.7
Slide 9: Analysis by Division (pro forma 12 months)
Analysis by Division (pro forma 12 months) 2010 A 2009 Pro forma Pro forma Variance £’000 £’000 £’000 Turnover England 68,800 57,737 11,063 Scotland 75,031 77,689 (2,658) Total 143,831 135,426 8,405 EBITDA England 5,463 5,554 (91) Scotland 10,226 14,202 (3,976) Head Office (1,964) (3,254) 1,290 Grou
Slide 10: Analysis – Volumes (pro forma 12 months)
Analysis – Volumes (pro forma 12 months) 2010 2009 Variance Pro forma Pro forma % ’000 tonnes ’000 tonnes Aggregates 3,616 3,593 +0.6% Asphalt 1,204 1,097 +9.8% Ready-mixed concrete 270 251 +7.6% Page "10!
Slide 11: Operational review
Operational review Simon Vivian
Slide 12: 2010 group operational review
2010 group operational review • No surprises following acquisition • Management strengthened in key positions • Cost base reduced to minimum; business on sounder financial footing • ‘Best of Breedon’ business improvement scheme launched • Improved procurement and credit terms across group • New plan
Slide 13: Regional review: Breedon Aggregates Scotland
Regional review: Breedon Aggregates Scotland
Slide 14: Scotland
Scotland J] Peterhead © 7 19) 18) DONE Aberdeen 28 Ay @ Glasgow e Agricuttu e Edinburgh Decorative Aggres ‘Sand & Gravel Morefields Quarry Banavie Quarry Benderloch Quarry Bonawe Quarry West Area Contracting Furnace Quarry Shierglas Quarry Meadowside Quarry ‘Aviemore Concrete Plant Inverness Concret
Slide 15: Breedon Aggregates Scotland
Breedon Aggregates Scotland • Impacted severely by December weather – many site closures • Significant additional costs for BEAR Scotland (37.5% associate) • Major new contracts: Scottish Water, A9, Fochabers • Busy Q1 with catch-up activity • High level of activity throughout our regions Aberdeen a
Slide 16: Regional review: Breedon Aggregates England
Regional review: Breedon Aggregates England
Slide 17: Mansfield Asphalt Plant
Mansfield Asphalt Plant > 4 Leaton Quarry Leinthall Quarry 920 8 Breedon Quarry* > Cloud Hill Quarry >) e "y 2) Ling Hall Asphalt & Concrete Plant DE 1 South Witham Quarry > S/R 8/8 8\/2 8/8 4 Corby Asphalt & Concrete Plant ey: =] 4 ef Shropham Quarry** 8 Longwater Asphalt Plant € “Decorae Aggregate
Slide 18: Breedon Aggregates England
Breedon Aggregates England • Tim Hall appointed as CEO • New regional structure: senior appointments completed • Contracting business reorganised and scaled back • Sales volumes ahead of FY09 in all product groups • Major new business: Rolls Royce, Barratt, Westleigh, A41 • Encouraging activity leve
Slide 19: Outlook
Outlook • Market outlook difficult to forecast • Private sector recovery underway, balanced by public sector cuts • Local authority cuts vary significantly and different in Scotland/England • Sharp rise in oil & energy-related costs in Q1 2011 – price recovery lag • Focus on improving performance in
Slide 20: Summary
Leen BREEDON AGGREGATES Summary Peter Tom
Slide 21: Summary
Summary • Unique investment in focused, independent UK aggregates player with highly experienced management • Prime beneficiary of cyclical recovery when it comes • Sound organic growth potential from improved localised service and ongoing business improvement initiatives • Strengthening balance she
Slide 22: Appendices: MPA volumes 2005-10
Appendices: MPA volumes 2005-10
Slide 23: Crushed rock volumes – moving annual trend
Crushed rock volumes – moving annual trend 130.0 120.0 110.0 million tonnes 100.0 90.0 80.0 70.0 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Crushed Rock MAT actual Page "23!
Slide 24: Ready-mixed concrete volumes – moving annual trend
Ready-mixed concrete volumes – moving annual trend 24.0 22.0 20.0 Cubic metres 18.0 16.0 14.0 12.0 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-05 Readymix concrete MAT actual Page "24!
Slide 25: Sand & gravel volumes – moving annual trend
Sand & gravel volumes – moving annual trend 90.0 85.0 80.0 75.0 million tonnes 70.0 65.0 60.0 55.0 50.0 45.0 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-05 Sand & Gravel MAT actual Page "25!
Slide 26: Asphalt volumes – moving annual trend
Asphalt volumes – moving annual trend 29.0 28.0 27.0 26.0 25.0 million tonnes 24.0 23.0 22.0 21.0 20.0 19.0 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-05 Asphalt MAT actual Page "26!
Slide 27: 2010 Results Presentation
2010 Results Presentation 30 March 2011 Essential Products ! Scarce Resources