Slide 1: Interim Results 2020
Slide 2: Agenda
Agenda Market Backdrop & Trading Performance Financial Performance Outlook CRH plc, Interim Results 2020 1
Slide 3: Key Messages & Financial Highlights
Key Messages & Financial Highlights … Sales • Resilient construction demand in N. America & E. Europe $12.2bn -3% LFL ... W. Europe more impacted by COVID-19 restrictions EBITDA • Decisive reaction to rapidly changing environment in Q2 ... improved profitability despite lower sales $1.6bn +2% LFL Ma
Slide 4: Market Backdrop & Trading Performance
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Slide 5: Evolving Market Backdrop
Evolving Market Backdrop … H1 2020 Monthly LFL Sales (YoY % Change) LFL Q1 Q2 H1 Sales +3% -8% -3% +6% +6% +3% (1%) (9%) (21%) • Positive start to the year … unprecedented disruption in Q2 • Significant regional variances Jan Feb Mar Apr May Jun … varying sector & end-use dynamics … improving trends
Slide 6: Pandemic Restrictions by Market
Pandemic Restrictions by Market … Limited • US Infrastructure Market • US Residential RMI +$0.2bn EBITDA Restrictions • Central & Eastern Europe Significantly • US Non-Residential Impacted • Western Europe -$0.2bn EBITDA Markets • UK … the benefits of portfolio balance CRH plc, Interim Results 2020
Slide 7: Swift & Agile Response
Swift & Agile Response … • Decisive reaction to unprecedented shutdowns … flexed cost base significantly in Q2 … lower capex & working capital investment • Continued to support businesses less impacted by shutdowns … active engagement across our portfolio of businesses … differing approaches for the
Slide 8: Adapting Our Approach to Different Market Situations
Adapting Our Approach to Different Market Situations Managing Costs … … Supporting Growth • Right-sized cost base with evolving demand • Expanded APG production facilities amid strong Residential RMI demand • Reduced fixed costs by ~$0.2bn in H1 ... labour; repair & maintenance; restructuring • Incr
Slide 9: Robust H1 Performance
Robust H1 Performance … Sales EBITDA Margin Operating Cash $12.2bn $1.6bn 13.0% $1.0bn Health & Safety of Employees Remains Paramount -3% LFL +2% LFL +70bps LFL +$0.7bn LFL … focused portfolio … decisive actions CRH plc, Interim Results 2020 8
Slide 10: Americas Materials – Trading Performance
Americas Materials – Trading Performance • Regional variances in pandemic restrictions ... US NE & NW most impacted ... South & West less affected H1 2020 $m LFL Chg Sales 4,479 -1% • Resilient demand for Infrastructure & Residential construction EBITDA 667 +20% • Disciplined commercial management d
Slide 11: Europe Materials – Trading Performance
Europe Materials – Trading Performance • Varying declines in activity levels across Europe … UK significantly impacted … Western Europe mixed H1 2020 $m LFL Chg … Eastern Europe resilient Sales 4,070 -11% • Good pricing discipline in an uncertain environment EBITDA 338 -28% • Adapting cost base in l
Slide 12: Building Products – Trading Performance
Building Products – Trading Performance • Strong delivery in H1 ... LFL sales, EBITDA & margin ahead • Record performance in Architectural Products H1 2020 $m LFL Chg ... benefiting from significant repair & maintenance exposure Sales 3,666 +2% • Good performance in Infrastructure business EBITDA 58
Slide 13: Financial Performance
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Slide 14: Strong Financial Performance
Strong Financial Performance ... • Flexed cost base to protect profits & margins • Disciplined cash management … capex & working capital • €2bn bond issuance & €3.5bn RCF drawdown ... supporting liquidity & investment grade rating • $1.0bn cash generation … further underpinning financial strength &
Slide 15: Components of Financial Performance
Components of Financial Performance 18 (11) 27 (65) +2% LFL $1,621m $1,590m One-off H1 19 Acquisitions / Currency H1 20 Organic Restructuring EBITDA (Divestments) Translation EBITDA Costs CRH plc, Interim Results 2020 14
Slide 16: Record H1 Cash Performance
Record H1 Cash Performance … • Strong operating cash inflow … $0.8bn reduction in working capital investment $1.0bn • Supporting essential growth in our business Operating … $0.2bn reduction in capex Cash +$0.7bn vs. PY • And continued cash returns to shareholders … $0.8bn dividends & buybacks … sig
Slide 17: Significant Reduction in Net Debt Position
Significant Reduction in Net Debt Position ~1.7x 3.6 Net Debt / Trailing 12M EBITDA 1.0 $11.6bn 0.5 1.4 1.8 0.7 $7.8bn H1 19 H2 19 H1 20 Net M&A / H2 19 H1 20 Dividends / H1 20 Net Debt Cash Inflow Cash Inflow Other Capex Capex Buybacks Net Debt CRH plc, Interim Results 2020 16
Slide 18: Outlook
Slide 19: Continued Execution of Long-term Strategy
Continued Execution of Long-term Strategy … • Experienced management team … proven track record of delivery • A clear strategy with a robust & resilient business model • Re-shaping & re-positioning our business for superior growth, returns & cash generation • Relentless focus on continuous business
Slide 20: Expect Q3 LFL sales to be slightly down vs. prior year
Expect Q3 LFL sales to be slightly down vs. prior year … Americas Materials Europe Materials Building Products Q3 sales slightly down vs. PY Q3 sales behind prior year Q3 sales broadly in line with PY • Solid underlying demand • Improving trends in WE • US Res RMI demand remains • Positive pricing •
Slide 21: Medium-term
Medium-term … • Outlook dependent on an improving health situation • Limited visibility for Q4 … and into 2021 ... market uncertainties to continue ... pace & shape of recovery to vary by geography & end-use • Focused on continuing to improve profitability, margins & cash … fundamentals to remain at
Slide 22: Appendices
Slide 23: Sustainability is at the Core of our Thinking
Sustainability is at the Core of our Thinking • Deeply embedded in all aspects of our strategy • 30+ years delivering innovative & sustainable solutions … reducing the impact of construction on our world • Continued recognition of sector leadership by major rating agencies • Leading the industry in
Slide 24: Group Components of Performance
Group Components of Performance Sales Operating Profit on Finance Assoc. and Pre-tax $ million EBITDA revenue profit disposals costs (net) JV PAT1 profit H1 2019 12,847 1,621 796 166 -261 16 717 Exchange effects -153 -11 -2 -1 2 - -1 H1 2019 at 2020 rates 12,694 1,610 794 165 -259 16 716 Incremental
Slide 25: Americas Materials
Americas Materials Analysis of change $ million H1 2019 Exchange Acquisitions Divestments One-offs1 Organic H1 2020 % Change Sales revenue 4,533 -21 +22 -20 - -35 4,479 -1% EBITDA 567 +1 +4 +1 -21 +115 667 +18% Operating profit 189 +4 +1 +2 -21 +114 289 +53% EBITDA/sales 12.5% 14.9% Operating profit
Slide 26: Europe Materials
Europe Materials Analysis of change $ million H1 2019 Exchange Acquisitions Divestments One-offs1 Organic H1 2020 % Change Sales revenue 4,615 -103 +35 - - -477 4,070 -12% EBITDA 521 -10 +4 - -32 -145 338 -35% Operating profit 236 -5 - - -32 -137 62 -74% EBITDA/sales 11.3% 8.3% Operating profit/sale
Slide 27: Building Products
Building Products Analysis of change $ million H1 2019 Exchange Acquisitions Divestments One-offs1 Organic H1 2020 % Change Sales revenue 3,699 -29 +174 -257 - +79 3,666 -1% EBITDA 533 -2 +34 -25 -12 +57 585 +10% Operating profit 371 -1 +16 -11 -12 +50 413 +11% EBITDA/sales 14.4% 16.0% Operating pro
Slide 28: Cement Volumes & Prices
Cement Volumes & Prices YoY % Change Volumes Price (LC) YoY % Change Volumes Price (LC) Finland = = Slovakia + ++ France -- + Spain ++ -- Germany ++ + Switzerland -- + Legend >5% ++ Hungary + ++ Ukraine - ++ 2% to 5% + Ireland -- + United Kingdom -- + -1% to +1% = -5% to -2% - Poland = ++ North Amer
Slide 29: Americas Materials Volumes & Prices
Americas Materials Volumes & Prices Heritage YoY % Change Volumes Price Aggregates 0% 2% Asphalt -5% 0% RMC -4% 6% CRH plc, Interim Results 2020 28
Slide 30: 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 31: 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