CRH plc 2013 Results Albert Manifold Maeve - PowerPoint PPT Presentation

CRH plc 2013 Results Albert Manifold Maeve Carton Chief Executive Finance Director

Page Page 1 CRH plc, Preliminary Results 2013

Key Points – 2013 Challenging weather in H1, significantly better trading in H2 Marked regional & market differences US – Moderate recovery… stronger res markets… improved profits & margins Europe – Slowing declines… markets difficult, but stabilising 2013 trough earnings… recovery underway Page Page 2 CRH plc, Preliminary Results 2013

CRH 2013 Results – Highlights PBT / EPS Sales EBITDA €540m / 59.5c €18 Bn €1.48 Bn (pre-impairment) Net debt Development Dividend ˂ €3.0 Bn €0.7 Bn maintained at 62.5c EBITDA ahead of guidance... strong cash delivery Page Page 3 CRH plc, Preliminary Results 2013

Trading Overview – CRH Group €m % chg 2013 2012 EBITDA ahead of guidance Sales 0% 18,031 18,084 Continuing challenges in Europe -6% 1,475 1,563 EBITDA  8.2% 8.6% EBITDA % Progress in the US Page Page 4 CRH plc, Preliminary Results 2013

Trading Overview – CRH Group 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales 0% 18,031 18,084 -3% +2% EBITDA -6% 1,475 1,563 -24% +4%  8.2% 8.6% EBITDA % Significant H1 weather impact… good H2 progress Page Page 5 CRH plc, Preliminary Results 2013

Trading Overview – Europe Overall €m % chg 2013 2012 Materials… weather & markets Sales -3% 8,578 8,816 headwinds Products… continued focus on EBITDA -19% 583 721 restructuring & rationalisation Distribution… challenges remain  6.8% 8.2% EBITDA % in the Netherlands Page Page 6 CRH plc, Preliminary Results 2013

Trading Overview – Europe Overall 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales -3% 8,578 8,816 -7% +1% EBITDA -19% 583 721 -43% -1%  6.8% 8.2% EBITDA % Much improved H2 trends Page Page 7 CRH plc, Preliminary Results 2013

Trading Overview – Europe Materials €m % chg 2013 2012 90% of EBITDA from 4 countries Sales -5% 2,266 2,383 CH / FI / PL / UA EBITDA -21% 278 352 Competitive pricing environment  12.3% 14.8% EBITDA % Lower Pension & CO 2 gains ( ∆ €43m) Page Page 8 CRH plc, Preliminary Results 2013

Trading Overview – Europe Materials 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales -5% 2,266 2,383 -13% +3% EBITDA -21% 278 352 -54% -2%  12.3% 14.8% EBITDA % H1 cement volumes down 14%... H2 up 5% Page Page 9 CRH plc, Preliminary Results 2013

Trading Overview – Europe Products €m % chg 2013 2012 BE / NL / FR at all-time lows… Sales -4% 2,376 2,477 historically 50% of EBITDA EBITDA -22% 119 152 Pressure on pricing & margins EBITDA %  5.0% 6.1% On-going restructuring actions Page 10 CRH plc, Preliminary Results 2013

Trading Overview – Europe Products 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales -4% 2,376 2,477 -8% 0% EBITDA -22% 119 152 -40% +5% EBITDA %  5.0% 6.1% 2013 H2 margins ahead of 2012 Page 11 CRH plc, Preliminary Results 2013

Trading Overview – Europe Distribution €m % chg 2013 2012 GBM / SHAP / DIY (EBITDA) 45% : 25% : 30% Sales -1% 3,936 3,956 Weak consumer confidence in NL EBITDA -14% 186 217 30% of EBITDA Good performance in EBITDA %  4.7% 5.5% DE, FR & SHAP segments Page 12 CRH plc, Preliminary Results 2013

Trading Overview – Europe Distribution 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales -1% 3,936 3,956 -3% +2% EBITDA -14% 186 217 -31% -2% EBITDA %  4.7% 5.5% Improved H2 trends Page 13 CRH plc, Preliminary Results 2013

Trading Overview – Americas Overall €m % chg 2013 2012 10% EBITDA growth in USD terms Sales +2% 9,453 9,268 Res up; Non-Res & Infra flat EBITDA +6% 892 842 Products the main growth driver  9.4% 9.1% EBITDA % Page 14 CRH plc, Preliminary Results 2013

Trading Overview – Americas Overall 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales +2% 9,453 9,268 +1% +3% EBITDA +6% 892 842 +4% +7%  9.4% 9.1% EBITDA % Stronger H2 trends with better weather Page 15 CRH plc, Preliminary Results 2013

Trading Overview – Americas Materials €m % chg 2013 2012 Aggregates… modest price Sales -3% 4,721 4,886 & volume increases Asphalt… lower volumes, EBITDA 0% 557 555 margins maintained EBITDA %  11.8% 11.4% Good acquisition contributions Page 16 CRH plc, Preliminary Results 2013

Trading Overview – Americas Materials 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales -3% 4,721 4,886 -7% -1% EBITDA 0% 557 555 -27% +4% EBITDA %  11.8% 11.4% H2 EBITDA margin 16.8% (vs. 15.9% H2 2012) Page 17 CRH plc, Preliminary Results 2013

Trading Overview – Americas Products €m % chg 2013 2012 Advances in all segments Sales +9% 3,068 2,806 Volumes up; Modest pricing EBITDA +21% 246 204 benefit EBITDA %  8.0% 7.3% Leverage on the way back up Page 18 CRH plc, Preliminary Results 2013

Trading Overview – Americas Products 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales +9% 3,068 2,806 +9% +10% EBITDA +21% 246 204 +19% +23% EBITDA %  8.0% 7.3% Good H1 & H2 margin progression Page 19 CRH plc, Preliminary Results 2013

Trading Overview – Americas Distribution €m % chg 2013 2012 EBITDA split... Ext 70% : Int 30% Sales +6% 1,664 1,576 Exterior Products: Hurricane Sandy activity in H1 EBITDA +7% 89 83 Some margin pressures in H2 Interior Products: EBITDA % - 5.3% 5.3% Benefiting from multi-family Res growth Page 20 CRH plc, Preliminary Results 2013

Trading Overview – Americas Distribution 2013 v 2012 €m % chg 2013 2012 ∆ H1 ∆ H2 Sales +6% 1,664 1,576 +6% +5% EBITDA +7% 89 83 +20% +3% EBITDA % - 5.3% 5.3% Hurricane Sandy repair activity in H1 Page 21 CRH plc, Preliminary Results 2013

Page Page 22 CRH plc, Preliminary Results 2013

Financial Results – Components of 2013 Performance €m Sales EBITDA 2012 18,084 1,563 Good performance from 2012 Translation (404) (36) acquisitions Acquisitions / Divestments 630 73 Lower Pension / CO 2 gains in 2013 Restructuring - (11) Pension / CO 2 gains - (29) H1 organic EBITDA down €105m Organic (279) (85) H2 progress, €20m ahead 2013 18,031 1,475 Page 23 Page CRH plc, Preliminary Results 2013

Financial Results – Excluding Impairment €m 2013 2012 PBT before impairments €m Operating profit 750 833 2012 820 Profit on disposals 26 230 Secil / Magnetic disposal (187) Net finance costs (297) (305) Organic (79) Equity-accounted entities 61 62 Other (14) 2013 540 Profit before tax 540 820 Page 24 Page CRH plc, Preliminary Results 2013

Cost Actions – 2013 Targets Exceeded 200 +€70m 150 Increased Saving Procurement €m 100 Process 50 Structural 0 Target* 2013 2013 CMD 2013F Achieved €195m cost savings in 2013 * Capital Markets Day Nov. 2012 Page 25 CRH plc, Preliminary Results 2013

Cost Actions – Increasing Targets 2012-2015 600 +€85m Increased Saving 400 Procurement €m Process 200 Structural 0 Target* Forecast Target Forecast €450m €535m ~50% of savings to date are permanent in nature * Capital Markets Day Nov. 2012 Page 26 CRH plc, Preliminary Results 2013

Impairment – 2013 Impairment of €755m 100% Americas Businesses impaired & identified Europe for disposal 80% ~3% of EBITDA 60% ~10% of Assets 40% Disposal processes underway 20% 0% Products Materials Distribution Impairment exercise complete Page 27 Page CRH plc, Preliminary Results 2013

Cash Generation €m 2013 2012 EBITDA 1,475 1,563 Capital expenditure (497) (544) Working capital 118 5 Other, mainly interest & tax (360) (384) Cash from operations 736 640 Continuing tight Capex & Working capital management Page 28 CRH plc, Preliminary Results 2013

Debt – Liquidity & Debt Profile Liquidity Debt Maturity Profile 2.5 Y/E undrawn facilities €1.95Bn €Bn 2.0 €1.5Bn bond issues, record low coupons 1.5 Y/E 2013 cash of €2.5Bn 1.0 Net Debt €2.97Bn 0.5 Net Debt / EBITDA 2.0x 0.0 Cash 2014 2015 2016 2017 2018 2019+ Well positioned to fund future growth Page 29 Page CRH plc, Preliminary Results 2013

Financial Overview – Key Points in 2013 Tight capex & Good cash Strong working capital generation liquidity control Impairment Increased Dividend exercise cost savings maintained complete Page Page 30 CRH plc, Preliminary Results 2013

Page Page 31 CRH plc, Preliminary Results 2013

Portfolio Review – Context 25% Return on Invested Capital 20% CRH Group Peers 15% 10% 5% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Industry-leading returns… through the cycle Source: Bloomberg Page CRH plc, Preliminary Results 2013 32

Portfolio Review – Context CRH strong long-term track record of performance & growth Sustainable model for operational improvement Relentless focus on returns Bolt-on acquisition strategy Resulting legacy… a strong portfolio of businesses However, the crisis has highlighted some concerns Page Page 33 CRH plc, Preliminary Results 2013