CRH PLC · NYSE:CRH
CRH — H1 2009 Earnings Presentation
29 slides from CRH's earnings presentation, Aug 25, 2009
Slide 1: CRH plc 2009 Interim Results
Myles Lee Albert Manifold Glenn Culpepper Chief Executive Chief Operating Officer Finance Director CRH plc, 2009 Interim Results, 25 August 2009 1
Slide 2: Contents
Contents Trading Performance 2 Cost Reduction Measures 12 Finance 17 Overview and Outlook 24 Contact Us 28 CRH plc, 2009 Interim Results, 25 August 2009
Slide 3: Trading Performance
Trading Performance Myles Lee Chief Executive CRH plc, 2009 Interim Results, 25 August 2009 3
Slide 4: H1 2009 Key Points
H1 2009 Key Points Results in line with July IMS guidance Reported Revenue -15%; EBITDA -41%; Operating Profit -66% PBT €108m after €74m restructuring and €21m adverse FX effects Traditional H1 Op. cash outflow reduced to €0.2Bn (H1 2008: €0.6Bn) 18.50c Interim dividend; maintains rights-adjuste
Slide 5: Europe – Overall
Europe – Overall Tough trading exacerbated by harsh winter & adverse FX % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (16%) 4,614 5,523 (909) (1,001) +213 +11 (132) EBITDA (42%) 410 707 (297) (280) +23 +1 (41) Op. profit (57%) 221 515 (294) (278) +19 +1 (36) EBITDA margin 8.9%
Slide 6: Europe Materials
Europe Materials Cost savings tempered the impact of volume reductions % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (28%) 1,303 1,810 (507) (434) +45 - (118) EBITDA (54%) 163 352 (189) (166) +14 - (37) Op. profit (70%) 80 267 (187) (164) +10 - (33) EBITDA margin 12.5% 19.4% O
Slide 7: Europe Products
Europe Products Sharp residential declines; less severe H1 Non-Res impact % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (19%) 1,546 1,908 (362) (359) +44 - (47) EBITDA (37%) 149 236 (87) (85) +4 - (6) Op. profit (53%) 75 158 (83) (83) +4 - (4) EBITDA margin 9.6% 12.4% Op. marg
Slide 8: Europe Distribution
Europe Distribution More robust than Products reflecting higher RMI exposure % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (2%) 1,765 1,805 (40) (208) +124 +11 +33 EBITDA (18%) 98 119 (21) (29) +5 +1 +2 Op. profit (27%) 66 90 (24) (31) +5 +1 +1 EBITDA margin 5.6% 6.6% Op. marg
Slide 9: Americas – Overall
Americas – Overall Impacted by poor weather and rapid Non-Res fall-off % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (12%) 3,678 4,181 (503) (1,125) +33 +2 +587 EBITDA (39%) 241 397 (156) (210) +2 - +52 Op. profit (90%) 20 197 (177) (204) +2 - +25 EBITDA margin 6.6% 9.5% Op. m
Slide 10: Americas Materials
Americas Materials Stable EBITDA margin despite 23% US$ Sales decline % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (12%) 1,648 1,874 (226) (516) +11 +1 +278 EBITDA (15%) 135 158 (23) (47) +1 - +23 Op. profit (106%) (2) 31 (33) (38) +1 - +4 EBITDA margin 8.2% 8.4% Op. margin (
Slide 11: Americas Products
Americas Products Overall Products US$ Sales down 24%; MMI down 40% % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (13%) 1,442 1,660 (218) (452) +21 - +213 EBITDA (52%) 95 199 (104) (130) +2 - +24 Op. profit (82%) 24 137 (113) (132) +2 - +17 EBITDA margin 6.6% 12.0% Op. margin
Slide 12: Americas Distribution
Americas Distribution Sales in US$ down 21% in difficult markets % H1 Acquisitions €m chg 2009 2008 Change Organic 2008 2009 FX Sales (9%) 588 647 (59) (157) +1 +1 +96 EBITDA (73%) 11 40 (29) (33) (1) - +5 Op. profit (107%) (2) 29 (31) (34) (1) - +4 EBITDA margin 1.9% 6.2% Op. margin (0.3%) 4.5% Ex
Slide 13: Cost Reduction Measures
Cost Reduction Measures Albert Manifold Chief Operating Officer CRH plc, 2009 Interim Results, 25 August 2009 13
Slide 14: Increased Cost Savings
Increased Cost Savings Announced July 2009 Cumulative annualised 2007 - 2010 Announced Jan-09 Jan-09 Gross Savings of €€895m 895m Updated July-09 July-09 to Gross Savings of €€1,450m 1,450m Total Total annualised annualised savings savings increased increased by by €€555m 555m to to €€1,450m 1,450m
Slide 15: Cost Savings Overview
Cost Savings Overview Announced July 2009 Impact Gross Annualised Initiatives (€m) ‘07 ‘08 ‘09 ‘10 Savings 2007 50 - - - 50 2008 - 447 398 - 845 2009 - - 450 105 555 Gross savings 50 447 848 105 1,450 Cost to implement - 62 158 30 Net savings 50 385 690 75 Implementation Implementation ongoing ongoi
Slide 16: Cost Savings by Division
Cost Savings by Division Focus on continuous and sustainable cost savings Jan -09 Jan-09 Increased Increased to to €€895m 895m €€1,450m 1,450m Europe Americas Americas Materials P&D 23% Europe P&D 29% Materials 32% 38% Americas Materials Europe Europe 26% P&D P&D Americas 15% 13% Materials 24% Cost
Slide 17: Breakdown of Cost Savings
Breakdown of Cost Savings Focus on continuous and sustainable cost savings Cumulative Cumulative Cost Cost Savings Savings Direct Labour Savings €508m €€1,450m 1,450m Layoffs, rotating crews, reduced shift patterns Overheads Savings €428m Overheads Direct labour 30% 35% Shared services, headcoun
Slide 18: Finance
Finance Glenn Culpepper Finance Director CRH plc, 2009 Interim Results, 25 August 2009 18
Slide 19: H1 2009 Components of Performance
H1 2009 Components of Performance Cost reduction tempered impact of organic sales decline Op. Profit on Finance Assoc. €m Sales EBITDA Profit Disposals Costs PAT PBT H1 ’08 Reported 9,704 1,104 712 24 (161) 31 606 FX effects 455 11 (11) 1 (10) (1) (21) H1’08 @ ’09 FX rates 10,159 1,115 701 25 (171)
Slide 20: Cash and Debt Management
Cash and Debt Management Liquidity Focus Reduced cash outflow from TWC and Capital Expenditure Inventory – intense focus on balancing supply with demand Receivables – focus on collections – DSO’s remain stable Capex – spending restraint – H1 levels c.50% of H1 2008 Excellent debt maturity profi
Slide 21: H1 2009 Funds Flow
H1 2009 Funds Flow Cash generation focus delivered strongly in H1 €m H1 H1 12 mths to 2009 2008 June 2009 Inflows Profit before tax 108 606 1,130 Depreciation 388 371 798 Amortisation of intangibles 22 21 44 518 998 1,972 Outflows Working capital (96) (606) 439 Tax Paid (41) (149) (214) Dividends (2
Slide 22: Debt Ratios & Interest Cover
Debt Ratios & Interest Cover Amongst the best in the sector H1 H1 Year-end 2009 2008 2008 Total Net Debt (incl share of JVs) €m 5,122 6,563 6,091 Total Equity €m 9,222 7,546 8,157 Debt/Total Equity 56% 87% 75% Debt/Market Capitalisation 45% 66% 64% Debt/EBITDA* (times) 2.3x 2.3x 2.3x EBITDA Net inte
Slide 23: June 2009 Debt Maturity Profile
June 2009 Debt Maturity Profile No undue concentration of maturities June 2009 CRH Debt € Bn Gross Debt by Maturity Undrawn (incl. Derivatives) (incl. JVs) Committed Facilities O/Ds 0.1 - Within 1 year 0.9 0.5 2 years 0.4 0.4 3 years 1.2 0.7 4 years 0.1 0.1 5 years 1.3 0.1 5 years + 2.2 0.1 Total 6.
Slide 24: Dividend
Dividend Maintained Interim Dividend Good H1 operating cash flow delivery despite profit decline Expect strong operating cash inflow in seasonally more profitable H2 18.50c Interim dividend; maintains rights adjusted ‘08 Interim of 18.48c Board will decide and announce final dividend decision in
Slide 25: Overview and Outlook
Overview and Outlook Myles Lee Chief Executive CRH plc, 2009 Interim Results, 25 August 2009 25
Slide 26: 2009 Outlook: H1 Overview and Recent Economic Indicators
2009 Outlook H1 Overview and Recent Economic Indicators H1 Overview Very tough H1 trading but rate of decline eased substantially in Q2 Significant cost reduction measures tempered H1 profit decline With marked reduction in seasonal operating cash outflow Recent Economic Indicators Generally mor
Slide 27: 2009 Outlook: Europe and Americas
2009 Outlook Europe and Americas Europe Outlook particularly challenging for Materials ops in Ireland & Finland ….. ….. and for Non-Res segments in Products & Distribution With less demanding comps, more favourable Polish cement trends, & ….. ..... benefits from restructuring, rate of EBIT decli
Slide 28: 2009 Outlook: Overall
2009 Outlook Overall Overall we expect H1 rate of profit decline to moderate in H2 ….. ….. with benefits from aggressive cost reduction measures and ….. ….. more moderate H2 energy related input costs than in ’08 Continuing focus on commercial delivery & cash generation to ensure… ….. CRH is wel
Slide 29: Contact Us
Contact Us CRH plc Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone:+ 353 1 404 1000 Fax: + 353 1 404 1007 Email: ir@crh.com or look up our Website - www.crh.com This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such s