Slide 1: Q3 Earnings Update
Q3 Earnings Update November 2023
Slide 2: Key Messages
Key Messages 9M Financial Highlights • Transition to US primary listing complete Sales • Strong performance … further growth in sales, EBITDA & margin $26.3bn +8% • $2.1bn acquisition of materials assets in Texas … delivering further growth and value creation EBITDA $4.8bn +14% • Disciplined & value
Slide 3: Market Backdrop – North America & Europe
Market Backdrop – North America & Europe • Positive underlying demand across key end-use markets • Robust Infrastructure activity underpinned by historic increase in government funding • Non-Residential demand driven by Industrial & Manufacturing segments • New-build Residential impacted by affordab
Slide 4: Americas Materials Solutions – Trading Performance
Americas Materials Solutions – Trading Performance • Strong performance & continued margin expansion % Change YoY Total LFL • Good commercial management & disciplined cost control Q3 9M Q3 9M • Robust Infrastructure backdrop … IIJA funding coming through Sales +5% +7% +3% +6% EBITDA +10% +11% +8% +1
Slide 5: Americas Building Solutions – Trading Performance
Americas Building Solutions – Trading Performance % Change YoY • Good operating leverage & further margin expansion Total LFL • Strong growth trends continue in Utility Infrastructure & Q3 9M Q3 9M Outdoor Living Sales +4% +15% flat +1% • Positive momentum in key Non-Residential segments EBITDA +19%
Slide 6: Europe Materials Solutions – Trading Performance
Europe Materials Solutions – Trading Performance • Positive pricing momentum more than offsetting % Change YoY subdued Residential demand Total LFL Q3 9M Q3 9M • 6th consecutive year of pricing progress Sales +17% +6% +4% +5% • Disciplined cost control & good operating leverage EBITDA +33% +20% +21%
Slide 7: Europe Building Solutions – Trading Performance
Europe Building Solutions – Trading Performance • Continued subdued Residential activity % Change YoY Total LFL • Resilient Infrastructure & Non-Residential demand Q3 9M Q3 9M • Disciplined commercial management Sales +10% +1% -5% -5% • Cost saving actions to mitigate lower activity levels EBITDA -1
Slide 8: Strong & Flexible Balance Sheet
Strong & Flexible Balance Sheet ~1.1x Net Debt / EBITDA ~$4bn ~$7bn $5.1bn ~$5bn ~$1.8bn ~$1bn FY22 Cash Net M&A / Dividends / FY23e Capex Net Debt Inflow Other Buybacks Net Debt CRH plc, Earnings Update 7
Slide 9: Transitioning to Quarterly Dividends from Q1 2024
Transitioning to Quarterly Dividends from Q1 2024 Dividend Per Share • Long-standing history of dividend payments $1.33 +56% • 40 consecutive years of increasing or stable dividend +9% CAGR • Accelerating payment of 2023 dividend … FY23 DPS +5% to $1.33 $0.85 • Transitioning to quarterly dividends w
Slide 10: Acquisition of Materials Assets in Texas
Acquisition of Materials Assets in Texas Increasing exposure to attractive & high-growth markets • Further strengthening our #1 market position in Texas Foreman, AR … the fastest growing state in the US Dallas-Fort Worth • Located in central Texas Austin … high-growth San Antonio / Austin region San
Slide 11: Significant Growth & Value Creation
Significant Growth & Value Creation Asset Summary • $2.1bn total consideration … c.$170m EBITDA (PF 2023) 1 4 20 • Modern & high-quality portfolio of assets Cement Cement RMC plant terminals plants • Margin accretive with attractive returns profile • Completion expected in H1 2024 2.1mt 140 1.6m cy
Slide 12: 2023 Outlook … Raising Full Year EBITDA Guidance
2023 Outlook … Raising Full Year EBITDA Guidance EBITDA EBITDA Margin Operating Cash Net Debt / EBITDA ~$6.3bn ~$5bn ~1.1x 2022: $5.6bn 10th consecutive year 2022: $4.4bn 2022: 0.9x … another record year for CRH … CRH plc, Earnings Update 11
Slide 13: End-Market Outlook for 2024
End-Market Outlook for 2024 Resilient underlying demand with positive pricing momentum North America Europe ~75% EBITDA ~25% EBITDA Infrastructure Continued rollout of once-in-a- Infrastructure Robust demand underpinned by ~40% Sales generation federal & state investment ~35% Sales government & EU f
Slide 14: Appendices
Appendices
Slide 15: Transition to US GAAP
Transition to US GAAP Next Steps / Expected Timeline • 29th February 2024 – CRH FY23 Results (Form 10-K) 2021/22 financial restatements (incl. IFRS to US GAAP reconciliations) available in advance • May 2024 – Q1 Results (Form 10-Q) CRH plc, Earnings Update 14
Slide 16: Summary Financial Performance
Summary Financial Performance YoY Total % Change YoY LFL % Change Q3’23 9M’23 Q3’23 9M’23 Sales EBITDA Margin Sales EBITDA Margin Sales EBITDA Margin Sales EBITDA Margin Americas Materials Solutions +5% +10% +120bps +7% +11% +70bps +3% +8% +130bps +6% +10% +70bps Americas Building Solutions +4% +19%
Slide 17: Materials Volumes & Prices
Materials Volumes & Prices Q3 YoY % Change 9M YoY % Change Americas Europe Americas Europe Volume Price Volume Price Volume Price Volume Price Aggregates -3% +13% -6% +6% -2% +14% -7% +9% Asphalt -1% +4% +1% +5% -1% +8% -6% +11% Cement -4% +13% -7% +15% -5% +16% -11% +21% RMC -6% +11% -13% +15% -4%
Slide 18: CRH plc hosted an Investor Presentation on 25 September
CRH plc hosted an Investor Presentation on 25 September to mark the transition of our primary listing to the New York Stock Exchange Click here to view a replay of the video webcast CRH plc, Earnings Update 17
Slide 19: 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 20: 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