Slide 1: 2016 Results
Bu | Aan ys tme tt
Slide 2: 2016 Financial Performance
2016 Financial Performance Sales EBITDA Dividend Increase €27.1bn €3.1bn Proforma Proforma 2016 +4% +15% +4% +41% +10% 65c Return on Net Assets EBITDA Margin Net Debt/EBITDA 2016 2016 2015 2015 9.7% 2015 11.5% 3.0x 2016 7.6% 9.4% 1.7x CRH plc, Preliminary Results 2016 1
Slide 3: Performance
Performance ING Trad
Slide 4: 2016 Trading by Region
2016 Trading by Region Europe Americas Asia Group Sales €12.4bn €14.2bn €0.5bn €27.1bn EBITDA €1.1bn €1.9bn €0.1bn €3.1bn CRH plc, Preliminary Results 2016 3
Slide 5: Europe Heavyside
Europe Heavyside 119mt Aggregates • #1 in heavyside building materials in Europe 26mt Cement • 18 countries … top 3 position in all major markets 16m m3 Readymixed Concrete • Vertically integrated business; Cement & Aggregates focused 13mt Concrete • Balanced sector & end-use exposures Products 35%
Slide 6: Europe Heavyside – Trading Performance
Europe Heavyside – Trading Performance • Markets ahead in the UK, France & Germany Change vs. 2015 2016 €m • Profit improvement through continued focus on Proforma commercial & operational excellence Sales 7,396 +41% +6% • Pricing environment remains challenging EBITDA 814 +77% +2% • Poland & Switze
Slide 7: Europe Lightside & Distribution
Europe Lightside & Distribution • Leading supplier of engineered & value-added construction products Engineered Construction Products • Distributor of building materials … primarily to 100 locations professional builders & specialist contractors Distribution 7 Countries • Late cycle business … Res &
Slide 8: Europe Lightside – Trading Performance
Europe Lightside – Trading Performance Change vs. 2015 • Positive trends continued in the Netherlands; 2016 €m particularly new-build Res Proforma Sales 941 -2% +7% • UK & Germany performed well EBITDA 104 +4% +12% • Margin expansion … self-help measures, portfolio management & commercial initiative
Slide 9: Europe Distribution – Trading Performance
Europe Distribution – Trading Performance Change vs. 2015 • Netherlands & Belgium continued ahead; 2016 €m Germany stable Proforma Sales 4,066 -2% - • France & Switzerland remained competitive EBITDA 206 +20% +3% • Good profit delivery … improved category management & cost control Margin 5.1% +100bp
Slide 10: 2016 Trading by Region
2016 Trading by Region Europe Americas Asia Group Sales €12.4bn €14.2bn €0.5bn €27.1bn EBITDA €1.1bn €1.9bn €0.1bn €3.1bn CRH plc, Preliminary Results 2016 9
Slide 11: Americas Materials
Americas Materials 157mt Aggregates • #1 Building materials company in North America • 43 US states & 8 Canadian provinces 46mt Asphalt • Leading market positions … backed by substantial mineral reserves 9m m3 Readymixed • 55% exposure to infrastructure Concrete 6mt Cement CRH plc, Preliminary Resul
Slide 12: Americas Materials – Trading Performance
Americas Materials – Trading Performance Change vs. 2015 • Good growth in all US regions … and Canada 2016 €m Proforma • Volumes & margins ahead … in all products Sales 7,598 +8% +2% • Good operating leverage … benefiting from EBITDA 1,204 +26% +15% performance initiatives in recent years Margin 15.
Slide 13: Americas Products & Distribution
Americas Products & Distribution • Supplier & manufacturer er of value-added construction products Architectural • Specialist distributor off building materials to Construction professional contractors rs Products • 43 US states … 5 Canadian adian provinces Building … leading market positions tions
Slide 14: Americas Products – Trading Performance
Americas Products – Trading Performance • Increased volumes … improving product mix … strong operating leverage Change vs. 2015 2016 €m Proforma • Good growth in Res single-family construction Sales 4,280 +11% +10% • Margin expansion … supported by portfolio EBITDA 543 +39% +18% management Margin 12
Slide 15: Americas Distribution – Trading Performance
Americas Distribution – Trading Performance • Broad based recovery; solid Res & Non-Res Change vs. 2015 demand 2016 €m Proforma • Residential roofing shipments ahead; Sales 2,315 +4% +4% good growth in RMI activity EBITDA 150 +7% +7% • Interior Products performed well Margin 6.5% +20bps +20bps … Off
Slide 16: 2016 Trading by Region
2016 Trading by Region Europe Americas Asia Group Sales €12.4bn €14.2bn €0.5bn €27.1bn EBITDA €1.1bn €1.9bn €0.1bn €3.1bn CRH plc, Preliminary Results 2016 15
Slide 17: Asia Division
Asia Division • Philippines ... 55% stake in 6mt cement business; #2 market position India … 50% stake in 9.5mt cement China … 26% stake in 32mt cement • Focus on expanding capacity in the Philippines to meet demand CRH plc, Preliminary Results 2016 16
Slide 18: Asia Division – Trading Performance
Asia Division – Trading Performance • Philippines – selling prices up in competitive Proforma 2016 €m markets … volumes lower % change Sales 508 +1% • Good Res demand in major urban centres EBITDA 109 - • Government supportive of increased infrastructure spend Margin 21.5% -20bps 2015 reflected part
Slide 19: Financial Performance
eee ormance miei (Clad
Slide 20: Components of Performance
Components of Performance €m Sales EBITDA 2015 23,635 2,219 • Good organic performance Organic 684 239 • Strong operating leverage Acquisitions/(Disposals) 3,118 669 • Full year contribution from 2015 Net Other (including FX) (333) 3 acquisitions 2016 27,104 3,130 • Accelerated synergy delivery CRH
Slide 21: Cash Flow Movements
Cash Flow Movements €m 2016 EBITDA 3,130 • Significant area of focus in 2016 Working Capital 56 • 75% of EBITDA converted to cash Interest (346) • Continued improvement in working Tax (481) capital management Other (19) Net cash inflow from operating activities 2,340 CRH plc, Preliminary Results 201
Slide 22: FY 2016 Net Debt Bridge
FY 2016 Net Debt Bridge €bn 0.1 0.3 2.3 0.8 6.6 5.3 FY 2015 Net Cash Capex Acquisitions / Net Dividend FY 2016 Inflow Divestments Net debt / EBITDA 3.0x 1.7x … strong financial discipline CRH plc, Preliminary Results 2016 21
Slide 23: Dividend
Dividend • Committed to performance & growth … value-accretive acquisitions & capex … recognising importance of dividend • Full year dividend increased to 65c • Now targeting dividend cover of ~3x CRH plc, Preliminary Results 2016 22
Slide 24: Capital Allocation
Capital Allocation Capital Allocation 2014-2017 • Active divestment programme underway post Portfolio Review in 2014 … €2bn disposals to date Divestments 10x EBITDA • Major transactions in 2017 … European divestment … €350m proceeds … 13x EBITDA Acquisitions 8x EBITDA Americas acquisitions … €400m E
Slide 25: Margins & Returns
Margins & Returns FY 2016 Margins Returns • Margins & returns ahead; good progress Europe all divisions ahead • Benefits of capital allocation, restructuring & reorganisation Americas all divisions ahead • Strong focus on commercial & operational excellence Asia • Americas good progress … Europe sti
Slide 26: Improvement in all Divisions
Improvement in all Divisions 14% 13% EBITDA +400bps Return on +530bps 13% 12% Margin Net Assets 12% 11% +350bps 10% +400bps 11% 9% 10% 8% 9% +250bps +310bps 7% 8% 6% 7% 5% 6% 4% 2013 2014 2015 2016 2013 2014 2015 2016 Americas Europe Group CRH plc, Preliminary Results 2016 25
Slide 27: Key Takeaways & Outlook
Key Takeaways & Outlook
Slide 28: Key Takeaways
Key Takeaways Profit & Margins & Cash Returns Continued growth … … ahead in all divisions … Capital Balance Sheet Allocation Restored … creating shareholder value … … capability … and capacity … well positioned for continued growth CRH plc, Preliminary Results 2016 27
Slide 29: 2017 Outlook
2017 Outlook • Progress in Europe; further advancement in the Americas; improvement in Asia • Balance sheet capacity … for the right opportunities • Relentless focus on performance & growth … another year of growth for CRH CRH plc, Preliminary Results 2016 28
Slide 30: Appendices
» Aopendices a
Slide 31: Group Components of Performance
Group Components of Performance Sales Operating Profit Finance Assoc. Pre-tax € million EBITDA revenue profit on disposals costs (net) & JV PAT profit 2015 23,635 2,219 1,277 101 -389 44 1,033 Exchange effects -333 -29 -11 -7 3 1 -14 2015 at 2016 rates 23,302 2,190 1,266 94 -386 45 1,019 Incremental
Slide 32: Europe Heavyside
Europe Heavyside Analysis of change Total € million 2015 Exchange Acquisitions Divestments LH Costs Organic 2016 % Change Change Sales revenue 5,256 -228 2,129 -111 - 350 7,396 2,140 41% EBITDA 460 -21 299 -11 89 -2 814 354 77% Operating profit 135 -8 183 -7 89 5 397 262 194% EBITDA/sales 8.8% 11.0%
Slide 33: Europe Lightside
Europe Lightside Analysis of change Total € million 2015 Exchange Acquisitions Divestments Organic 2016 % Change Change Sales revenue 961 -28 30 -50 28 941 -20 -2% EBITDA 100 -4 2 -3 9 104 4 4% Operating profit 75 -4 2 -1 9 81 6 8% EBITDA/sales 10.4% 11.1% Op. profit/sales 7.8% 8.6% CRH plc, Prelimi
Slide 34: Europe Distribution
Europe Distribution Analysis of change Total € million 2015 Exchange Divestments Swiss Fine Organic 2016 % Change Change Sales revenue 4,158 -24 -53 - -15 4,066 -92 -2% EBITDA 171 -1 -2 32 6 206 35 20% Operating profit 94 -1 -1 32 6 130 36 38% EBITDA/sales 4.1% 5.1% Op. profit/sales 2.3% 3.2% CRH pl
Slide 35: Americas Materials
Americas Materials Analysis of change Total € million 2015 Exchange Acquisitions Divestments LH Costs Organic 2016 % Change Change Sales revenue 7,018 -4 715 -78 - -53 7,598 580 8% EBITDA 955 - 72 -7 50 134 1,204 249 26% Operating profit 620 - 23 -3 50 128 818 198 32% EBITDA/sales 13.6% 15.8% Op. pr
Slide 36: Americas Products
Americas Products Analysis of change Total € million 2015 Exchange Acquisitions Divestments Organic 2016 % Change Change Sales revenue 3,862 -48 390 -214 290 4,280 418 11% EBITDA 391 -3 80 -6 81 543 152 39% Operating profit 249 2 58 -1 103 411 162 65% EBITDA/sales 10.1% 12.7% Op. profit/sales 6.4% 9
Slide 37: Americas Distribution
Americas Distribution Analysis of change Total € million 2015 Exchange Organic 2016 % Change Change Sales revenue 2,229 5 81 2,315 86 4% EBITDA 140 - 10 150 10 7% Operating profit 111 - 8 119 8 7% EBITDA/sales 6.3% 6.5% Op. profit/sales 5.0% 5.1% CRH plc, Preliminary Results 2016 36
Slide 38: Asia Division
Asia Division Analysis of change Total € million 2015 Exchange Acquisitions LH Costs Organic 2016 % Change Change Sales revenue 151 -6 360 - 3 508 357 236% EBITDA 2 - 93 13 1 109 107 n/m Operating profit -7 - 71 13 -6 71 78 n/m EBITDA/sales 1.3% 21.5% Op. profit/sales -4.6% 14.0% n/m not meaningful
Slide 39: CRH Proforma Sales – 2015
CRH Proforma Sales – 2015 Exclude CRH LH/CRL CRH incl. Divested Currency Proforma Sales (€m) Reported Proforma1 LH/CRL entities Translation2 2015 Europe Heavyside 5,256 2,260 7,516 -115 -407 6,994 Europe Lightside 961 - 961 -50 -28 883 Europe Distribution 4,158 - 4,158 -53 -24 4,081 Europe 10,375 2,
Slide 40: CRH Proforma Sales – 2016
CRH Proforma Sales – 2016 Exclude CRH Divested Proforma Proforma Proforma Sales (€m) Reported entities 2016 2015 % Change Europe Heavyside 7,396 -6 7,390 6,994 6% Europe Lightside 941 - 941 883 7% Europe Distribution 4,066 - 4,066 4,081 0% Europe 12,403 -6 12,397 11,958 4% Americas Materials 7,598 -
Slide 41: CRH Proforma EBITDA – 2015
CRH Proforma EBITDA – 2015 Exclude CRH LH/CRL CRH incl. LH Divested One- Currency Proforma EBITDA (€m) Reported Proforma1 Assets/CRL entities off items² translation³ 2015 Europe Heavyside 460 309 769 -11 121 -51 828 Europe Lightside 100 - 100 -3 - -4 93 Europe Distribution 171 - 171 -2 32 -1 200 Eur
Slide 42: CRH Proforma EBITDA – 2016
CRH Proforma EBITDA – 2016 Exclude CRH Divested One-off Proforma Proforma Proforma EBITDA (€m) Reported Entities Items1 2016 2015 % Change Europe Heavyside 814 -1 32 845 828 2% Europe Lightside 104 - - 104 93 12% Europe Distribution 206 - - 206 200 3% Europe 1,124 -1 32 1,155 1,121 3% Americas Mater
Slide 43: Margins & Returns
Margins & Returns EBITDA Margin RONA 2013 2014 2015 2016 2013 2014 2015 2016 Heavyside 8.6% 9.7% 11.1% 11.4% Heavyside 3.3% 5.4% 5.8% 6.9% Lightside 8.3% 10.3% 10.4% 11.1% Lightside 6.2% 12.5% 14.3% 16.3% Distribution 4.7% 4.8% 4.9% 5.1% Distribution 6.6% 6.9% 8.0% 8.4% Europe 6.8% 7.5% 8.5% 9.3% Eu
Slide 44: Cement Volumes & Prices
Cement Volumes & Prices Proforma¹ Proforma¹ Volume Price (LC) Volume Price (LC) YoY % chg YoY % chg Finland +13% -2% Slovakia +1% +2% France +6% -1% Spain² +9% -6% Germany +10% -3% Switzerland -3% -6% Hungary +1% - Ukraine +11% +26% Ireland² +18% -4% United Kingdom +6% +1% Poland -18% - Canada +1% +
Slide 45: Americas Materials Volumes & Prices
Americas Materials Volumes & Prices Proforma¹ Volume Price YoY % chg Aggregates +3% +3% Asphalt +2% -7% RMC +4% +3% 1. Year on year Proforma comparisons include the 2015 trading results of the now integrated LH Assets. CRH plc, Preliminary Results 2016 44
Slide 46: Euroconstruct Estimates 2016
Euroconstruct Estimates 2016 Total Construction Output Change Total Construction Output Change Austria +1.6% Portugal -1.0% Belgium +3.1% Netherlands +5.5% Denmark +2.1% Poland -0.8% Finland +6.8% Slovakia -5.4% France +2.4% Spain +2.1% Germany +2.5% Switzerland +0.1% Hungary -3.3% United Kingdom -0
Slide 47: US Estimates 2016 (PCA)
US Estimates 2016 (PCA) Construction Put-in-place Change Construction Put-in-place Change Total Construction Put-in-place +2.7% Hotels, Motels +22.0% Total Residential +1.9% Total Public -0.1% New Housing +3.8% Highways & Streets +3.0% Improvements -1.7% Public Utility & Other +2.9% Total Non-Reside
Slide 48: Disclaimer
Disclaimer 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 statement. This document cont
Slide 49: Contact Information
Contact Information 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 CRH plc, Preliminary Results 2016 48
Slide 50: CRH plc Registered Office
Cover Image: Car park at Bispebjerg Hospital, Copenhagen, Denmark, built from prefabricated concrete supplied by CRH business, Betonelement. Using 22,000m3 of slabs and panels, in addition to 900 tonnes of beams, columns and stairs, the Betonelement solution enabled project completion three months a