Slide 1: CRH plc 2011 Results
CRH plc 2011 Results F E B R UA RY 2 0 1 2 Maeve Carton Myles Lee Albert Manifold Finance Director Chief Executive Chief Operating Officer
Slide 2: 2011 Results
1 2011 Results • Trading Performance • Financial Overview • Outlook CRH plc, 2011 Preliminary Results, 28th February 2012
Slide 3: 2011 Results Highlights
2 2011 Results Highlights Sales PBT & EPS Growth Margins resilient FY Like-for-like +5% PBT +33% Supported by H1 +5%; H2 +5% EPS +35% Products & Distribution Acquisitions Disposals Dividend €0.6 Bn cash spend €0.5 Bn total proceeds Maintained at 62.5 cent 45 Transactions On-going portfolio review Gr
Slide 4: 2011 Outcome – Ahead of November Guidance
3 2011 Outcome – Ahead of November Guidance PBT €m EBITDA Impairment Pre Impairment Post Impairment “Approximately “Significantly Between “Well ahead IMS Guidance €1.6 billion” Lower” €678m and €708m of 2010” Actual 2011 1,656 (32) 743 711 +3% +13% +33% Actual 2010 1,615 (124) 658 534 CRH plc, 2011
Slide 5: Europe Materials – EBITDA Margin Steady Excluding CO2
4 Europe Materials – EBITDA Margin Steady Excluding CO2 €m % chg 2011 2010 EBITDA Split Sales +12% 2,985 2,665 Developing Poland, Ukraine, Turkey, China, India EBITDA +3% 436 423 40% 45% "Austerity" Stable Op. profit +5% 264 251 Switzerland, Finland, Netherlands 15% EBITDA margin 14.6% 15.9% Stable
Slide 6: Europe Materials – Operational Delivery in 2011
5 Europe Materials – Operational Delivery in 2011 2011 Results • FY vols +5% (H1:+4%); FY prices +4% (H1:+2%); Improved H2 cost recovery • Underlying EBITDA ex CO2 +€11m; H1 -€22m; H2 +€33m • EBITDA margin excluding CO2 steady at 13.3% 2011 Highlights • Increased alternative fuel usage from c13% to
Slide 7: Europe Products – Margin Improvement
6 Europe Products – Margin Improvement €m % chg 2011 2010 EBITDA Split Sales (6%) 2,648 2,817 Concrete EBITDA (2%) 194 198 35% Clay 50% Op. profit n/m 66 11 15% EBITDA margin 7.3% 7.0% Building Products Op. margin 2.5% 0.4% Includes Restructuring € 24m (2010: € 16m) and Impairment € 15m (2010: € 54m
Slide 8: Europe Products – Operational Delivery in 2011
7 Europe Products – Operational Delivery in 2011 2011 Results • Business disposals impact; sales -€364m, EBITDA -€8m, EBIT +€3m • FY like-for-like sales +6%; strong H1 +8%; slower H2 +4% • Good H1 EBITDA progress; additional restructuring costs in H2 2011 Highlights • Recovery in Structural Concrete
Slide 9: Europe Distribution – Significant Progress
8 Europe Distribution – Significant Progress €m % chg 2011 2010 EBITDA Split Sales +22% 4,340 3,566 Builders EBITDA +25% 267 214 Merchants 30% Op. profit +41% 190 135 55% SHAP Sanitary, Heating 15% & Plumbing EBITDA margin 6.2% 6.0% DIY Op. margin 4.4% 3.8% Includes Restructuring € 4m (2010: € 4m) a
Slide 10: Europe Distribution – Operational Delivery in 2011
9 Europe Distribution – Operational Delivery in 2011 2011 Results • Acquisitions impact; sales +€486m, EBITDA +€32m, EBIT +€23m • FY like-for-like sales +4%; strong H1 +7%; slower H2 +2% • DIY operations impacted by weakening consumer confidence in H2 2011 Highlights • Procurement programme deliveri
Slide 11: Americas Materials – US$ EBITDA ahead of Nov. guidance
10 Americas Materials – US$ EBITDA ahead of Nov. guidance €m % chg 2011 2010 EBITDA Split Sales - 4,395 4,417 10% Residential EBITDA (6%) 530 566 25% Op. profit (8%) 264 288 Non-residential 65% EBITDA margin 12.1% 12.8% Infrastructure Op. margin 6.0% 6.5% Includes Restructuring € 9m (2010: € 17m) an
Slide 12: Americas Materials – Operational Delivery in 2011
11 Americas Materials – Operational Delivery in 2011 Aggs Asphalt RMC Paving 2011 Results 122m tons 42m tons 7.3m yd3 • ∆ Volumes (LFL) +4% (1%) +10% LFL Sales flat • ∆ Prices (LFL) (1%) +5% (1%) • ∆ Unit Var. Cost (LFL) (2%) +8% +1% • ∆ EBITDA Ahead Lower Flat Lower 2011 Highlights • Energy costs a
Slide 13: Americas Products – Benefits from Restructuring
12 Americas Products – Benefits from Restructuring €m % chg 2011 2010 EBITDA Split Sales (4%) 2,378 2,469 10% Residential EBITDA +6% 164 154 50% Non-residential Op. profit n/m 42 (24) 40% EBITDA margin 6.9% 6.2% Infrastructure Op. margin 1.8% (1.0%) Includes Restructuring € 4m (2010: € 29m) and Impa
Slide 14: Americas Products – Operational Delivery in 2011
13 Americas Products – Operational Delivery in 2011 2011 Results • Positive disposals impact: sales -€70m, EBITDA +€8m, EBIT +€13m • FY like-for-like sales +2%; weak H1 -1%; strong H2 +6% • Higher input costs; lower restructuring and impairment 2011 Highlights • Good benefits from organisational rea
Slide 15: Americas Distribution – Good Progress
14 Americas Distribution – Good Progress €m % chg 2011 2010 EBITDA Split Sales +8% 1,335 1,239 EBITDA +8% 65 60 Residential 50% 50% Op. profit +22% 45 37 EBITDA margin 4.9% 4.8% Non-Residential Op. margin 3.4% 3.0% Includes Restructuring € 1m (2010: € 1m) and Impairment € nil (2010: € nil) CRH plc,
Slide 16: Americas Distribution – Operational Delivery in 2011
15 Americas Distribution – Operational Delivery in 2011 2011 Results • FY like-for-like sales +11%; strong H1 +13%; H2 +10% • Strong operational response to supplier price increases • Overall margins ahead 2011 Highlights • Further streamlining of organisational structures • Private label brand (Tri
Slide 17: EBITDA Margin Resilient … Benefits of Balance
16 EBITDA Margin Resilient … Benefits of Balance EBITDA % 2011 2010 Europe P&D Europe Products 7.3% 7.0% Restructuring benefits/Resilient RMI trends Europe Distribution 6.2% 6.0% Americas Products 6.9% 6.2% Americas P&D Products reorganisation benefits Americas Distribution 4.9% 4.8% Europe Material
Slide 18: 2011 Results
17 2011 Results • Trading Performance • Financial Overview • Outlook CRH plc, 2011 Preliminary Results, 28th February 2012
Slide 19: Group Overall – Earnings Up; Dividend Maintained
18 Group Overall – Earnings Up; Dividend Maintained €m % chg 2011 2010 Associates PAT Similar after impairment of Profit on Disposals 55 55 €11m (2010: €22m) Net Finance Costs (257) (247) Share of Associates’ PAT 42 28 EPS After tax at 16.0% Profit Before Tax +33% 711 534 (2010: 17.8%) EPS (cent) +3
Slide 20: 2011 Operating Cash Inflow
19 2011 Operating Cash Inflow €m 2011 2010 Working Capital Inflows Profit before tax 711 534 Outflow reflects higher sales Depreciation/Impairment 785 917 and good finish to year 1,496 1,451 Outflows Working capital (161) 256 Capital Expenditure 78% of depreciation Dividends (Pre scrip) (445) (438)
Slide 21: Net Debt in-line with 2011
20 Net Debt in-line with 2011 €m 2011 2010 Acquisitions Operating cash inflow 26 665 H1 €163m; H2 €447m Acquisitions and investments (610) (567) Disposals 492 188 Disposals Share issues (net) 141 185 Businesses €390m Surplus land/PPE €102m Translation (59) (221) Debt (increase) / decrease (10) 250 O
Slide 22: Strong Financial Profile
21 Strong Financial Profile Gross Debt €4.8 Bn Aug ’11 €1.5Bn 5-yr bank facility Gross Cash (€1.3 Bn) 13 major international banks Net Debt €3.5 Bn Replaced €0.6Bn short-term facilities Net Debt/EBITDA 2.1x Jan ’12 €0.5Bn 7-yr bond issue EBITDA/Net Interest 6.4x 5% coupon; over 230 investo
Slide 23: Balanced Debt Maturity Profile
22 Balanced Debt Maturity Profile € Bn Dec 2011 (incl. JVs) – Pro Forma 2.0 1.5 1.0 0.5 0.0 Cash 2012 2013 2014 2015 2016 2017 2018 2019 2020+ Jan-12 Bond CRH plc, 2011 Preliminary Results, 28th February 2012
Slide 24: CRH Debt Metrics Amongst Best in Sector
23 CRH Debt Metrics Amongst Best in Sector End December Net Debt / LTM EBITDA 10x Europe Peers Americas Peers 8x 8.0x 6x 6.9x 4x 3.5x 3.7x 3.3x 2x 2.9x 2.1x 1.6x 0x BBB BBB+ BBB BBB+ BB BB+ B- BB CRH CRH plc, 2011 Preliminary Results, 28th February 2012 Source: Company Reports; Davy Book 17 Feb 2012
Slide 25: 2011 Results
24 2011 Results • Trading Performance • Financial Overview • Outlook CRH plc, 2011 Preliminary Results, 28th February 2012
Slide 26: 2012 Outlook
25 2012 Outlook Assuming no major economic or energy market dislocations Further like-for-like revenue growth expected Achievement of targeted price increases a key priority We expect a further year of progress in 2012 CRH plc, 2011 Preliminary Results, 28th February 2012
Slide 27: CRH Strengths
26 CRH Strengths Proven Business Model Balance Sheet Disciplined approach One of the to long-term value creation strongest in the sector Dividend Delivery Acquisition Capability Unique Substantial capacity sector record for appropriate opportunities CRH plc, 2011 Preliminary Results, 28th February 2
Slide 28: Supplementary Information
27 S UPPLEMENTARY I NFORMATION CRH plc, 2011 Preliminary Results, 28th February 2012
Slide 29: CRH Group – Components of Performance
28 CRH Group – Components of Performance Operating Profit on Finance Associates € million Sales EBITDA Profit Disposals Costs PAT PBT 2010 17,173 1,615 698 55 (247) 28 534 Exchange (243) (24) (4) (1) 5 2010/2011 Acquisitions 805 78 49 (8) 41 2010/2011 Divestments (469) (1) 16 17 5 (3) 35 Restructuri
Slide 30: Europe Materials – Components of Performance
29 Europe Materials – Components of Performance Analysis of Change €m % Chg 2011 2010 Change Organic Acquisitions Divestments Restructuring Exchange Sales +12% 2,985 2,665 +320 +243 +110 (35) - +2 EBITDA +3% 436 423 +13 (18) +17 (1) +14 +1 Op. Profit +5% 264 251 +13 (13) +10 - +14 +2 EBITDA Margin 1
Slide 31: Europe Products – Components of Performance
30 Europe Products – Components of Performance Analysis of Change Restructuring/ €m % Chg 2011 2010 Change Organic Acquisitions Divestments Impairment Exchange Sales (6%) 2,648 2,817 (169) +175 +20 (364) - - EBITDA (2%) 194 198 (4) +9 +3 (8) (8) - Op. Profit n/m 66 11 +55 +19 +1 +3 +31 +1 EBITDA Mar
Slide 32: Europe Distribution – Components of Performance
31 Europe Distribution – Components of Performance Analysis of Change Restructuring/ €m % Chg 2011 2010 Change Organic Acquisitions Divestments Impairment Exchange Sales +22% 4,340 3,566 +774 +154 +486 - - +134 EBITDA +25% 267 214 +53 +12 +32 - - +9 Op. Profit +41% 190 135 +55 +19 +23 - +6 +7 EBITDA
Slide 33: Americas Materials – Components of Performance
32 Americas Materials – Components of Performance Analysis of Change €m % Chg 2011 2010 Change Organic Acquisitions Divestments Restructuring Exchange Sales - 4,395 4,417 (22) +59 +130 - - (211) EBITDA (6%) 530 566 (36) (37) +20 - +8 (27) Op. Profit (8%) 264 288 (24) (28) +10 - +8 (14) EBITDA Margin
Slide 34: Americas Products – Components of Performance
33 Americas Products – Components of Performance Analysis of Change Restructuring/ €m % Chg 2011 2010 Change Organic Acquisitions Divestments Impairment Exchange Sales (4%) 2,378 2,469 (91) +51 +37 (70) - (109) EBITDA +6% 164 154 +10 (26) +7 +8 +25 (4) Op. Profit n/m 42 (24) +66 (16) +6 +13 +61 +2 E
Slide 35: Americas Distribution – Components of Performance
34 Americas Distribution – Components of Performance Analysis of Change €m % Chg 2011 2010 Change Organic Acquisitions Divestments Restructuring Exchange Sales +8% 1,335 1,239 +96 +133 +22 - - (59) EBITDA +8% 65 60 +5 +9 (1) - - (3) Op. Profit +22% 45 37 +8 +11 (1) - - (2) EBITDA Margin 4.9% 4.8% Op
Slide 36: 2011: Acquisition Spend c€0.61 Bn
35 2011: Acquisition Spend c€0.61 Bn €Bn H1 2011 H2 2011 Full Year Europe / Asia 0.03 0.26 0.29 Americas 0.13 0.19 0.32 Total 0.16 0.45 0.61 2011 acquisition spend in line with 2010 Acquisitions well spread across regions Active pipeline across all business segments CRH plc, 2011 Preliminary Res
Slide 37: Analysis by Segment
36 Analysis by Segment Sales Revenue (€ m) 2011 2010 % chg EBITDA Profit (€m) 2011 2010 % chg Europe Materials 2,985 2,665 +12% Europe Materials 436 423 +3% Europe Products 2,648 2,817 (6%) Europe Products 194 198 (2%) Europe Distribution 4,340 3,566 +22% Europe Distribution 267 214 +25% Americas Ma
Slide 38: Analysis by Segment
37 Analysis by Segment Operating Profit (€m) 2011 2010 % chg Profit on Disposal (€m) 2011 2010 Europe Materials 264 251 +5% Europe Materials 14 4 Europe Products 66 11 n/m Europe Products 20 13 Europe Distribution 190 135 +41% Europe Distribution 7 21 Americas Materials 264 288 (8%) Americas Materia
Slide 39: Euroconstruct Estimates for 2011
38 Euroconstruct Estimates for 2011 Construction Output 2011 % change Construction Output 2011 % change Belgium +3.9% Poland +12.9% Denmark +3.3% Portugal (10.0%) Finland +2.6% Spain (19.4%) France +3.8% Switzerland +2.6% Germany +3.7% United Kingdom (2.0%) Ireland (17.5%) West
Slide 40: PCA Estimates for 2011 (United States)
39 PCA Estimates for 2011 (United States) 2011 Real GDP +1.7% Construction Put-in-Place 2011 % change 2011 Construction Put-in-Place (3.7%) Industrial (17.6%) 2011 Cement Consumption +1.2% Office (8.0%) Hotels, Motels (27.4%) Construction Put-in-Place 2011 % change Total Non-residential
Slide 41: Contact Us
40 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 This presentation contains certain forward-looking statements as defined under US legislation. By their Website: www.crh.com nature, such statements in