Restatement of 2004 Results under International Financial Reporting Standards

Transcription

1 Restatement of 2004 Results under International Financial Reporting Standards Myles Lee, Finance Director 31 May

2 IFRS Transition - Overview Standards of particular relevance to CRH: Adoption of IFRS (IFRS 1) - provides some exemptions to retrospective restatement Share-based Payment (IFRS 2)- expensing of share-based payments at fair value Business Combinations (IFRS 3) - non-amortisation of goodwill/impairment review Deferred Taxation (IAS 12) - accounting on the basis of temporary differences Employee Benefits (IAS 19) - assets/liabilities of DB schemes included in balance sheet Joint Ventures (IAS 31) - proportionate consolidation in balance sheet/income statement Provisions (IAS 37) - provisions/deferred consideration discounted to net present cost Intangible Assets (IAS 38) - recognition and amortisation on business combinations Financial Instruments (IAS 32 and IAS 39) - derivatives included at fair value Other standards and pronouncements of lesser relevance to CRH 1

3 IFRS Transition - Exemptions Availed of by CRH IFRS 1 transition exemptions selected by CRH No restatement of business combinations prior to 1 January 2004 Previous fixed asset revaluations regarded as deemed cost Cumulative actuarial gains and losses for DB pension schemes recognised in full Cumulative currency translation differences set at zero Group financial history summary prior to 2004 will not be restated for IFRS Most listed companies are availing of these exemptions to ease transition burden Certain other standards provide transition options for first-time IFRS adopters 2

4 IFRS Restatement of Key 2004 P&L Captions Full Year Interim Irish Irish m IFRS GAAP Change IFRS GAAP Change Turnover 12,755 12,820 (65) 5,608 5,670 (62) EBITA 1,220 1,247 (27) (15) EBIT 1,231 1, Interest (146) (140) (6) (64) (67) 3 Associates PAT PBT 1,104 1,

5 IFRS Restatement of 2004 Turnover m Full Year Interim Turnover - Irish GAAP 12,820 5,670 JVs Re-classified as Associates (65) (62) Turnover - IFRS 12,755 5,608 Change in Turnover (65) (62) 4

6 Restatement of Operating Profit (EBITA) m Full Year Interim Operating Profit - Irish GAAP 1, Expensing of Share Options (10) (4) Business Combinations 8 (1) Amortisation of Intangibles (4) (2) Associates included at PAT level (22) (3) JVs Re-classified as Associates (5) (8) Sundry 6 3 Operating Profit - IFRS 1, Change in Operating Profit (27) (15) 5

7 Restatement of Profit Before Interest (EBIT) m Full Year Interim Profit before Interest - Irish GAAP 1, EBITA Adjustments (slide 5) (27) (15) Elimination of 2004 Goodwill Amortisation Profit before Interest - IFRS 1, Change in EBIT

8 IFRS Restatement of Net Interest m Full Year Interim Net Interest - Irish GAAP (140) (67) Net Pension Interest Income 9 4 Unwinding of Discounts (11) (5) Derivatives (4) 4 Minority Interest Re-classification (2) (1) Associates included at PAT level 2 1 Net Interest - IFRS (146) (64) Change in Net Interest (6) 3 7

9 IFRS Restatement of Profit Before Tax (PBT) m Full Year Interim Profit before Tax - Irish GAAP 1, EBIT adjustments (slide 6) Interest adjustments (slide 7) (6) 3 Associates PAT 19 7 Profit before Tax - IFRS 1, Change in Profit before Tax

10 IFRS Restatement of Attributable Profit Full Year Interim Irish Irish m IFRS GAAP Change IFRS GAAP Change PBT 1,104 1, Taxation (232) (247) 15 (63) (69) 6 Minorities (6) (8) 2 (4) (5) 1 Attributable Tax rate % 21.0% 24.3% 19.9% 25.1% 9

11 IFRS Restatement of Earnings Per Share Full Year Interim Irish Irish IFRS GAAP IFRS GAAP Attributable Profit ( m) Avg shares (m) Basic EPS (c) EPS pre Goodwill (c) Basic EPS under IFRS very similar to previously reported Irish GAAP EPS excluding goodwill amortisation 10

12 IFRS 1/1/2004 Transition Balance Sheet Total Total Total Net m Assets Liabilities Equity Debt Irish GAAP 11,065 (6,216) 4,849 (2,308) Consolidation of JVs (IAS 31) 302 (301) 1 (178) Deferred Tax (IAS 12) 36 (403) (367) - Net Pension Liabilities (IAS 19) 78 (210) (132) - Minority Interest (IAS 32) - (66) (66) (66) Discounting of Provisions (IAS 37) Derivatives (IAS 39) 225 (229) (4) (3) Deferred Tax Re-allocation (IAS 12) 195 (195) - - Proposed Dividends (IAS 10) Sundry IFRS 11,924 (7,477) 4,447 (2,555) 11

13 IFRS Restatement of 2004 Equity m Year End Interim Total Equity - Irish GAAP 5,300 5,166 Deferred Tax (IAS 12) (342) (376) Net Pension Liabilities (IAS 19) (211) (137) Minority Interest Re-classification (IAS 32) (54) (65) Discounting of Provisions (IAS 37) Derivatives (IAS 39) (6) 2 Proposed Dividends (IAS 10) Business Combinations (IFRS 3)/Intangibles (IAS 38) Sundry Total Equity - IFRS 4,979 4,753 12

14 IFRS Restatement of 2004 Net Debt m Year End Interim Net Debt - Irish GAAP 2,441 3,175 Consolidation of Joint Ventures (IAS 31) Minority Interest Re-classification (IAS 32) Derivatives (IAS 39) 6 (5) Net Debt - IFRS 2,758 3,493 Change in Net Debt

15 IFRS Restatement - Summary Full Year 2004 PBT 9% higher under IFRS mainly due to non-amortisation of goodwill 2004 PAT 13% higher reflecting PBT increase and lower IFRS tax charge 2004 Basic EPS 14% higher under IFRS Year End 2004 Equity c. 300m lower under IFRS mainly due to inclusion of deferred taxation on asset revaluations and pension liabilities Year End 2004 Net Debt c. 300m higher mainly due to proportionate consolidation of debt in joint ventures which is non-recourse to CRH Detailed description of IFRS adjustments is contained in Press Release of 31 May 2005 available on our website at 14

16 Contact Us CRH plc Investor Relations Belgard Castle Clondalkin Dublin 22 Ireland Phone: Fax: ir@crh.com or look up our Website - This presentation contains certain forward-looking statements as defined under US legislation. By their nature, such statements involve uncertainty; as a consequence, actual results and developments may differ from those expressed in or implied by such statements depending on a variety of factors including the specific factors identified in this presentation and other factors discussed in our Annual Report on Form 20-F filed with the SEC. CRH is a registered Trade Mark of CRH plc 15