Agenda CRH plc 2014 Results TAGLINE TO GO HERE CRH plc, Preliminary Results 2014 1
CRH - Key Points A year of earnings growth Delivery on strategy Improving returns and margins Capital reallocatjon Financial discipline Strong cash generatjon GLOBAL DIVERSIFIED BUILDING MATERIALS GROUP CRH plc, Preliminary Results 2014 1
2014 Highlights A year of profjt growth 150bps improvement in RONA Margins up in all 6 divisions 22% operatjng leverage €0.9bn cash generated from operatjons Effjcient allocatjon of capital 2014 - A YEAR OF GROWTH CRH plc, Preliminary Results 2014 2
2014 Headline Numbers Sales €18.91bn 5% EBITDA €1.64bn 11% EPS 78.9c 33%* Dividend 62.5c Net debt €2.5bn 16% DELIVERY AHEAD OF GUIDANCE *Based on 2013 EPS of 59.5c (pre-impairment) CRH plc, Preliminary Results 2014 3
Market Backdrop TAGLINE TO GO HERE
Market Backdrop - Europe Well positjoned across Europe W . Europe normalising C. & N. Europe stable with steady advancement E. Europe encouraging growth - Ukraine uncertain Strong H1, pull-back over summer, pick-up Y/E Good operatjng leverage across all divisions STARTED ON A RECOVERY PATH CRH plc, Preliminary Results 2014 5
Trading Overview - Europe Heavyside €m 2014 2013 Change Like-for-Like sales up 3% Sales 3,929 3,786 +4% Pricing remains subdued EBITDA 380 326 +17% Stable input cost environment Good profjt and margin improvement EBITDA % 9.7% 8.6% +110bps CRH plc, Preliminary Results 2014 6
Trading Overview - Europe Lightside €m 2014 2013 Change Strong profjt and margin performance Sales 913 856 +7% Benefjt of reorganisatjon and EBITDA 94 71 +32% cost cuttjng coming through Double-digit returns; 13% RONA EBITDA % 10.3% 8.3% +200bps CRH plc, Preliminary Results 2014 7
Trading Overview - Europe Distributjon Strong positjons in key RMI markets €m 2014 2013 Change 9% profjt growth absent 2013 Sales 3,999 3,936 +2% pension gain EBITDA 190 186* +2% Resilient performance in challenging environments EBITDA % 4.8% 4.7%* +10bps 40bps increase in organic margin *Includes pension gain of €11m CRH plc, Preliminary Results 2014 8
Market Backdrop - Americas Aturactjve macro fundamentals Economy advancing steadily Demand led by Res and Non-Res Infrastructure spending stable Profjt and margin growth in all Divisions POSITIVE MOMENTUM CONTINUES CRH plc, Preliminary Results 2014 9
Trading Overview - Americas Materials €m 2014 2013 Change Good volume and pricing environment Sales 5,070 4,721 +7% Res/Non-Res contributjng positjvely EBITDA 609 557 +9% Industry highway constructjon up Strong season fjnish - good momentum EBITDA % 12.0% 11.8% +20bps CRH plc, Preliminary Results 2014 10
Trading Overview - Americas Products Strong margin recovery in H2 €m 2014 2013 Change afuer diffjcult H1 Sales 3,225 3,068 +5% Good Q3 growth contjnued into Q4 Res growth at steady pace EBITDA 263 246 +7% Non-Res recovery acceleratjng EBITDA % 8.2% 8.0% +20bps Strongest markets in South and West CRH plc, Preliminary Results 2014 11
Trading Overview - Americas Distributjon Increased roofjng volumes in tough markets €m 2014 2013 Change Positjve wallboard performance; Sales 1,776 1,664 +7% volumes and prices ahead EBITDA 105 89 +18% Benefjts of branch network optjmisatjon EBITDA % 5.9% 5.3% +60bps Strong sales and profjt growth CRH plc, Preliminary Results 2014 12
Components of 2014 Performance €m Sales EBITDA 2013 18,031 1,475 Overall results ahead of guidance Translation (62) (11) Realising the benefjts of prior year cost initjatjves Acquisition/Disposals 212 16 €164m increase in organic EBITDA Net Other - (3) 22% operatjng leverage Organic 731 164 2014 18,912 1,641 STRONG ORGANIC EBITDA GROWTH ON MODEST SALES GROWTH CRH plc, Preliminary Results 2014 13
Cash Generatjon in 2014 €m 2014 2013 Change EBITDA 1,641 1,475 +166 Tight capex management Capital Expenditure (435) (497) Working capital infmow despite 5% Working Capital 69 118 sales growth Other (mainly interest & tax) (373) (360) EBITDA increase converted directly to cash Cash from Operations 902 736 +166 STRONG OPERATING CASH FLOW OF €0.9BN CRH plc, Preliminary Results 2014 14
Liquidity & Term Debt Profjle Term Debt Maturity Profjle (€bn) 3.5 4.1% 4% 3.0 Y/E cash balance of €3.3bn Avg. cost of debt 2.5 Undrawn facilitjes of €2.6bn 2.0 €0.9bn bond issuances at record 3.0% 3% 1.5 low coupons 1.0 Investment grade credit ratjngs 0.5 Net debt €2.5bn (2013: €3.0bn) 0 2% 2014 2014 2015 2016 2017 2018 2019 2020+ Y/E Cash BALANCE SHEET SUPPORTS FINANCIAL STRENGTH AND AGILITY CRH plc, Preliminary Results 2014 15
Balance Sheet Impact – Lafarge-Holcim Transactjon €6.5bn commitued to L/H acquisitjon €1.6bn from equity placement €2.9bn senior unsecured debt facility Net Debt /EBITDA pro forma ratjo of 3.1x Commitued to restoring debt metrics to normalised levels in 2016 CRH plc, Preliminary Results 2014 16
2014 Progress on Key Agenda Items TAGLINE TO GO HERE
Restoring Margins and Returns to Peak Over Cycle EBITDA 2014 RONA Margin Europe Heavyside Europe Lightside 2014 a year of progress on all fronts Europe Distribution Operatjng leverage coming through Americas Materials Margin progression and RONA improvement in all divisions Americas Products Americas Distribution Group DELIVERING ON MARGINS AND RETURNS CRH plc, Preliminary Results 2014 18
Capital Effjciency Divestment programme progressing well €0.93bn divestments commitued since mid-2014 €0.35bn signed and completed in 2014 €0.58bn signed in 2014...to complete in Q1 2015 €0.19bn bolt-on acquisitjons in 2014 Reallocatjon of capital at aturactjve multjples *EV/EBITDA multiples RECYCLING CAPITAL AT HIGHER RETURNS CRH plc, Preliminary Results 2014 19
CRH - Positjoned for Growth TAGLINE TO GO HERE CRH plc, Preliminary Results 2014 20
Industry in the Early Stage of Growth Cycle Constructjon Output 130 Organic markets improving 120 Index (2013 = 100) US recovery gaining momentum 110 Res/Non-Res advancing; Infrastructure stable 100 EU normalising Benefjtjng from strong 2013 2014e 2015f 2016f 2017f regional footprint W. Europe E. Europe US Source: Euroconstruct and PCA CRH plc, Preliminary Results 2014 21
CRH Opportunitjes for Growth CRH #1 building materials producer in N. America N. America (4% CAGR*) MARKETS ~50% pro forma EBITDA (post L/H) Constructjon to grow at 4% CAGR* US market recovery to drive organic growth New Canada platgorm US STRATEGY Regional in-fjll and network optjmisatjon Further vertjcal integratjon; pull-through demand Canada Vertjcal integratjon Adjacent products Balanced across all sectors * Constructjon output 2015 - 2025 Source: Global Constructjon 2025 CRH plc, Preliminary Results 2014 22
CRH Opportunitjes for Growth Pro forma EBITDA ~€0.9 bn (post L/H) W. Europe (1% CAGR*) MARKETS across 14 countries 6 key countries account for >80% of EBITDA Stable developed markets Enhanced network benefjts STRATEGY Increased pull-through demand Build on Distributjon platgorm - currently #2 in Contjnental Europe Scalable Lightside platgorms * Constructjon output 2015 - 2025 Source: Global Constructjon 2025 CRH plc, Preliminary Results 2014 23
CRH Opportunitjes for Growth #1 building materials producer in CEE CEE (4% CAGR*) MARKETS Long-term constructjon growth drivers New-build driving demand ~65% Regional constructjon growth of 4% CAGR* Leverage existjng materials network STRATEGY Roll-out vertjcal integratjon model Regional productjon fmexibility Enhanced procurement benefjts - self-supply optjons * Constructjon output 2015 - 2025 Source: Global Constructjon 2025 CRH plc, Preliminary Results 2014 24
CRH Opportunitjes for Growth Asia ~60% global populatjon Asia (7% CAGR*) MARKETS Urbanisatjon driving demand Constructjon growth of 7% CAGR* Further develop existjng China/India platgorms STRATEGY Heavyside entry into new regions - Philippines Lightside product opportunitjes S. Am. (3% CAGR*) Top 5 positjon in SE Brazil S. AMERICA On-going infrastructure needs * Constructjon output 2015 - 2025 Source: Global Constructjon 2025 CRH plc, Preliminary Results 2014 25
Cash and Effjcient Capital Allocatjon Financial discipline underpins Strong cash generatjon investment grade ratjngs funds growth Balance Sheet strength Capital effjciency gives competjtjve advantage “chasing out stranded capital” Positjoned to reinvest capital at higher returns FINANCIAL AGILITY – A KEY STRATEGIC ASSET CRH plc, Preliminary Results 2014 26
Outlook 2015 Tough comparatjves vs H1 2014 General market environment contjnues to improve US - Contjnued positjve momentum Europe - normalisatjon across main markets Benefjts from Easing of commodity prices Favourable FX translatjon efgect Pricing environment in US positjve - Europe more mixed Further improvement in earnings and returns 2015 - a year of growth CRH plc, Preliminary Results 2014 27
Key Messages Growth EBITDA +11% EBITDA margin +50bps Margins RONA +150bps Returns Op. Cash Flow €0.9bn Cash Recycling capital at higher returns Capital Effjciency CRH POSITIONED FOR GROWTH CRH plc, Preliminary Results 2014 28
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