A Global Building Materials Group

Similar documents
Agenda. Our Business Rock Solid. Performance in last 5 Years. Delivering Returns in CRH. CRH plc, AGM

Key Messages. 9M trading continuation of H1 trends despite adverse US weather. 1.34bn of YTD acquisition spend 27 transactions

Interim Results 2017

CRH plc, the global building materials group, issues the following Trading Update for the period 1 January 2018 to 30 September 2018.

Press Release Trading Update April 2018

H Key messages Interim Results

CRH plc 2013 Results. Albert Manifold Maeve Carton

2017 Results. CRH777 Results 2017 Presentation_cover.indd 1

Citigroup Building Materials Conference November Myles Lee Finance Director Chief Executive Designate

CRH Interim Results August 2014

INTERIM MANAGEMENT STATEMENT

Albert Manifold Myles Lee Maeve Carton COO CEO FD

Davy Irish Equity Market Conference New York Liam O Mahony Chief Executive

2013 Interim Results CRH plc

UBS European Conference 2011

(i) No information is required to be disclosed in respect of Listing Rules (1), (3), (4), (5), (6), (7), (8), (9), (10), (11) and (14).

Capital Markets Day Europe Materials

Myles Lee, Chief Executive. Glenn Culpepper, Finance Director. CRH plc, 2008 Preliminary Results, 3 rd March

CRH Investor Presentation 2014 Media Pack

Performance and Growth

2018 Interim Results

2009 Trading Statement & Development Update Conference Call

CRH Profile. International Leader in Building Materials

2017 Results. CRH777 InterimResults_2017_A4cover.indd 1

MOLSON COORS TO ACQUIRE STARBEV Attractive Value Creation, Growth and Scale Opportunity April 3, 2012

Davy Irish Equities Conference London, May 18 th 2006

Meeting the Management 2017 The road ahead expanding our strengths. Matthias Zachert, CEO

H RESULTS 27 JULY 2017

LafargeHolcim makes good progress in 2017; Strategy 2022 to drive growth. EPS 11.9% up on prior year excluding impairment and divestments

2016 Annual Report and Form 20-F

Liam O'Mahony, Chief Executive Myles Lee, Finance Director. CRH plc, 2006 Interim Results, 29 th August

PRELIMINARY RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2017

Disclaimer. Contact Frank Heisterkamp, Head of Investor Relations Mark Cahalane, Group Director, Corporate Affairs

CRH plc, the international building materials group, issues the following Interim Results for the six months ended 30 June 2014.

INTERIM RESULTS. Interim Results.

CRH Overview M EDIA PACK J ULY 2012

Financial Targets through 2022: Focus on Value Creation

Liam O Mahony Chief Executive CRH plc, 2006 Preliminary Results, 6 th March Myles Lee Finance Director

AXA. Bank of America Merrill Lynch 21st Annual Financials CEO Conference London September 29, Thomas Buberl Chief Executive Officer

CRH Profile. International Leader in Building Materials

W. R. Grace & Co. Fourth Quarter 2014 Business Update. Investor Presentation February 5, 2015

Interim Management Statement

STRATEGIC DISTRIBUTION ACQUISITION IN SOUTH AMERICA

Investor Presentation June 2017

Strengthening the economic model

Accelerating our IPT strategy

Financial Review. John Sznewajs, Chief Financial Officer

Capital Markets Day Developing Regions

Henkel Annual Results Press Conference

YEAR END RESULTS 31 MARCH Russell Down, Chief Executive Chris Morgan, Group Finance Director

ESTABLISHING A GLOBAL LEADER IN WORKWEAR 1. August 14, 2017

Fixed Income Investor Presentation August 2016

Building a better AA Putting Service, Innovation and Data at the heart of the AA

FINANCIAL UPDATE. Marika Fredriksson Executive Vice President & CFO. Copenhagen, 29 November 2018

Adecco Group Investor Presentation. May 2016

We prioritize sustainable, profitable growth

AIRBUS GROUP 2016 CAPITAL MARKETS UPDATE

October 8, 2015 Brookfield Renewable Energy Partners

DEUTSCHE TELEKOM CAPITAL MARKETS DAY 2012 GROUP STRATEGY & OUTLOOK RENÉ OBERMANN

Fourth Quarter Earnings Presentation. March 29, 2016

INTERIM RESULTS PRESENTATION SIX MONTHS TO 30 JUNE 2018

Investor Presentation January 2018

United Rentals to Acquire RSC Holdings

LafargeHolcim continues growth in sales and EBITDA in Q3. Q3 Net Sales grow 4.1% year-on-year to CHF 6.9 billion on a like-for-like basis

Earnings Presentation October 25, 2018

FY2018 RESULTS PRESENTATION 27 August 2018

Investor Presentation

2018 FOURTH QUARTER EARNINGS CALL

Compass Group PLC. CAGE Annual Conference 2017 Sandra Moura Head of Investor Relations & Corporate Affairs

Berenberg / Goldman Sachs German Corporate Conference. 21 September 2015, Munich

Facultad de Educación UADY, México. Juan Pablo San Agustín EVP of Strategic Planning and New Business Development

September 11, Corporate Update. Rich Tobin, President & Chief Executive Officer

Lavendon Group plc European and Middle Eastern Market Leader for Powered Access Rental

Interim Results Presentation. 28 August 2017

Investor Presentation

Investor Presentation

Q2 & H1 FINANCIAL RESULTS. July

Investor Presentation. J.P. Morgan ATI Conference March 14, 2018 New York, NY

Q Investors Presentation

Henkel FY/Q Kasper Rorsted Carsten Knobel. Düsseldorf Feb 20, 2014

FUA. For personal use only INVESTOR PRESENTATION. $5b $4b. $3b 7 months $2b 11 months $1b 27 months $100m June 12

Cumulative like for like Sales declines eased progressively through H1. from 23% end Feb, 17% end Mar, 14% end Apr to 10% at end Jun

IPL Plastics plc AGM May 2018

RPC GROUP PLC CAPITAL MARKETS DAY 2017

Bank of America Merrill Lynch Global Industrials Conference 2018 March 2018

Credit Suisse 6 th Annual Industrials Conference November 2018

Investor Deck December 2018

9 May Half Year Results

Foro Boca, Mexico. Juan Pablo San Agustín EVP Strategic Planning and New Business Development

4th Quarter and Full Year 2011 Earnings Summary. February 14, 2012

4 th ANNUAL MORGAN STANLEY LAGUNA CONFERENCE

Britvic plc Interim Results 2018

RESULTS FOR THE YEAR ENDED. 31 March 2018

Ambition AXA Investor Day June 1, US Life. Mark Pearson President & CEO of AXA in the US

CRANE CO. FINANCIAL OVERVIEW

Henkel AG & Co. KGaA. Klaus Keutmann Frankfurt,

4Q 2017 Presentation. February 27, 2018

HSBC Telecom Conference December 2-3,

FY16 YEAR END RESULTS 5 APRIL 2016

H RESULTS PRESENTATION

Transcription:

A Global Building Materials Group 27.6bn Revenue 3.3bn EBITDA #2 Worldwide 32 Countries 85,000 People Fortune 500 Company Euro Stoxx 50 Company FTSE 100 Company CRH plc, May 2018 1

Why Invest in Building Materials? Natural demand for construction products driven by: Population growth Economic development New-build and repair, maintenance & improvement The Industry is fragmented: Opportunities for acquisitions room to grow Significant benefits of scale locally, regionally, globally Long-term drivers of construction growth CRH plc, May 2018 2

Why Invest in Building Materials? 160 150 Population Growth US 350 300 GDP Growth US CAGR +4% 300 275 250 Construction Growth US CAGR +4% 140 130 120 110 EUR 250 200 150 EUR CAGR +3% 225 200 175 150 125 EUR CAGR +3% 100 100 100 1970 1980 1990 2000 20102017 1990 1995 2000 2005 2010 2015 2017 1990 1995 2000 2005 2010 2015 2017 Strong fundamentals underpin growth in our main markets CRH plc, May 2018 3

% Decline from peak % Decline from peak Where are we in the Recovery Cycle? Our main markets 0% -25% -50% U.S. Year 0 1 2 3 4 5 6 7 8 9 10 11 12 1970s 1930s 07 1980s 14 15 16 13 08 11 12 17 18F 10 09 0% -20% -40% Europe Year 0 1 2 3 4 5 6 7 8 9 10 11 1990s 1980s 1970s 08 09 10 11 12 13 14 15 16 17 18F -75% 1973-1978 1979-1985 1929-1941 2006-2018F U.S. Cement Demand -60% 1973-1980 1980-1989 1991-1998 2007-2018F Europe Cement Demand Still some way to run in the cycle Recovery in early stages CRH plc, May 2018 4 Source: Global Cement Report, US Geological Survey, PCA, UN, Morgan Stanley

CRH Performance & Growth 2013 18bn Revenue 2017 28bn Revenue +53% 1.5bn EBITDA 3.3bn EBITDA +124% 1.2bn Free Cash 13bn Market Cap 2.3bn Free Cash 25bn Market Cap +97% +87% CRH plc, May 2018 5 Free Cash = EBITDA +/- WC movements - Interest - Tax

CRH a Better Business Significant portfolio review initiated in 2014 4bn+ divestment proceeds Since then, we have reallocated capital & reshaped our business This also included value-accretive M&A 10bn acquisitions Increasing our exposure to higher growth markets e.g. Southern / Western U.S. and Eastern Europe Leading to structurally higher margins, a better business mix and improving returns & cash Continuously adapting to changing markets CRH plc, May 2018 6

Strong growth in Sales and EBITDA 30 Sales ( bn) 27.1 27.6 3.7 3.2 EBITDA ( bn) 3.1 3.3 25 20 18.0 18.9 23.6 CAGR +11% 2.7 2.2 1.7 1.5 1.6 2.2 CAGR +22% 15 2013 2014 2015 2016 2017 1.2 2013 2014 2015 2016 2017 CRH plc, May 2018 7

Improved Margins and Returns 13% 11% 9% EBITDA % Returns % 12% 9% 9% 8% 12% +400bps 11% 9% 7% 9% 7% 6% 10% 11% +500bps 7% 2013 2014 2015 2016 2017 5% 2013 2014 2015 2016 2017 CRH plc, May 2018 8 Returns = EBIT / Net Assets

Generating Strong Cash Flows 2.5 Free Cash Flow ( bn) 2.3 2.4 2.3 2.0 Converting ~80% of profits into cash Generating 2bn+ cash p.a. 1.5 1.2 1.3... before disposals 1.0 0.5 2013 2014 2015 2016 2017 CRH plc, May 2018 9 Free Cash = EBITDA +/- WC movements - Interest - Tax

Building a Simpler & More Focused Business Previous Structure Europe Heavyside Asia Europe Lightside Europe Distribution Americas Products Americas Materials Americas Distribution Narrower & Deeper (Divested Jan 2018) New Structure (Jan 2019) Europe Materials (i) Building Products (ii) Americas Materials ~30% of EBITDA (iii) ~30% of EBITDA (iii) ~40% of EBITDA (iii) Further re-shaping the Group for future growth CRH plc, May 2018 11 (i) (ii) (iii) Europe Heavyside and Asia Europe Lightside, Europe Distribution and Americas Products 2017 reported, continuing operations

Building Products Establishing a Global Platform Related businesses, organised under separate structures in Europe and U.S. Now combining regional structures to form one global platform together, ~30% of Group EBITDA Significant further opportunities for growth and value creation Strong track record of profitable growth leadership positions in high-growth segments Leverage our scale & capabilities and benefit from horizontal integration & network synergies Meet the changing needs of construction Creating value through our global scale CRH plc, May 2018 12

Strategic Review of Europe Distribution Leading European distributor of Building Materials 4bn sales across 6 countries in a number of different segments Mixed performance in recent years Strategic Review of the business is underway This will be focused on improving our margins & returns and will also explore other strategic options Identifying opportunities to create further value CRH plc, May 2018 13

As Announced at our Recent AGM (April 2018) CRH plc, May 2018 14

Market Outlook to 2021 North America United States Solid fundamentals Funded Infra programmes to drive investment (+3% p.a.) Continued Res (+3% p.a.) Non-Res (+2% p.a.) demand Positive price dynamics in the marketplace Canada Favourable backdrop construction market growth +2% p.a. Pricing in line with recent trends CRH plc, May 2018 15

Market Outlook to 2021 Europe Market recovery driven by residential sector Recovery underway across European markets (+2% p.a.) Eastern Europe strong new-build growth (+5% p.a.) Western Europe RMI focus (+1% to +2% p.a.) Pricing continuing to show signs of recovery CRH plc, May 2018 16

CRH by 2021 Higher Operating Leverage Recent years guided organic leverage of 15% to 20% Our improving business mix brings structurally higher margins with better cash generation and higher returns Now guiding operating leverage of 20%+ CRH plc, May 2018 17

CRH by 2021 Higher Margins Our business mix is narrower & deeper driving greater value through our operations Enhancing our Process efficiencies Leveraging our scale increasing Procurement savings Simpler, leaner structures supporting our businesses Targeting EBITDA margin improvement of 300bps by 2021 CRH plc, May 2018 18

CRH by 2021 Generating More Cash Continued strong cash conversion (FCF / EBITDA) of 70%+ Working capital discipline Strong capex management guiding to be broadly in line with depreciation Continued commitment on dividends Maintain investment grade credit rating guiding net debt / EBITDA at 2.0x provides 7bn unutilised financial capacity by 2021 before divestments CRH plc, May 2018 19 Free Cash = EBITDA +/- WC movements - Interest - Tax

Efficient Capital Management Portfolio Review In 2014 announced a 1.5bn to 2bn divestment programme realised in excess of 4bn Continuously managing our asset base an embedded practice in CRH Delivering value through efficient recycling of capital Further 1.5bn to 2bn of divestments over the medium-term CRH plc, May 2018 20

Capital Allocation Significant Optionality Value-accretive Capex Supporting our business... low risk investments Dividends Continued commitment Value-driven M&A Significant opportunities Surplus Cash Return to shareholders Relentless focus on shareholder value CRH plc, May 2018 21

Key Takeaways Organisation Simpler with 3 divisions global Building Products review of Europe Distribution Market outlook Solid fundamentals N. America +2% to +3%... Europe +2% Operating leverage Guiding operating leverage of 20%+ EBITDA margins Targeting EBITDA margin improvement of 300bps by 2021 Efficient Capital Management further 1.5bn to 2bn of divestments over the medium-term Cash generation capacity of 7bn after capex & dividends before divestments Capital allocation value-accretive capex dividends value-driven M&A surplus cash returns CRH plc, May 2018 22

CRH plc, May 2018 23

Building Products Overview (2017) m Europe Lightside Europe Distribution Americas Products Building Products Sales 1,440 4,145 4,327 9,912 EBITDA 143 269 573 985 EBITDA Margin 9.9% 6.5% 13.2% 9.9% EBIT 102 207 435 744 Construction Accessories, 35% General Builders Merchants, 60% Architectural Products, 45% Americas Products, 44% Shutters & Awnings, 15% Network Access Products & Perimeter Protection, 20% Architectural Products, 30% DIY, 20% SHAP, 20% Precast, 20% Building Envelope, 35% Europe Distribution, 42% Europe Lightside, 14% Residential, 40% Residential, 75% Residential, 45% Residential, 57% Non-Res, 40% Non-Res, 20% Non-Res, 50% Infra, 20% Infra, 5% Infra, 5% Infra, 7% Non-Res, 36% CRH plc, May 2018 24 Product and sector exposures are based on sales

Disclaimer In order to utilise the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995, CRH public limited company (the Company ), and its subsidiaries (collectively, CRH or the Group ) is providing the following cautionary statement. This document contains certain forward-looking statements with respect to the financial condition, results of operations, business, viability and future performance of CRH and certain of the plans and objectives of CRH. These forward-looking statements may generally, but not always, be identified by the use of words such as "will", "anticipates", "should", "expects", "is expected to", "estimates", "believes", "intends" or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future and reflect the Company's current expectations and assumptions as to such future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, certain of which are beyond our control, as detailed in the section entitled Risk Factors in our 2017 Annual Report on Form 20-F as filed with the US Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. The Company expressly disclaims any obligation to update these forward-looking statements other than as required by law. The forward-looking statements in this document do not constitute reports or statements published in compliance with any of Regulations 6 to 8 of the Transparency (Directive 2004/109/EC) Regulations 2007. CRH plc, May 2018 25

Contact Information CRH plc Investor Relations Stonemason s Way Rathfarnham Dublin 16 D16 KH51 Ireland Telephone: +353 1 404 1000 Email: ir@crh.com Website: www.crh.com The inclusion of CRH public limited company in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of CRH public limited company by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates. CRH plc, May 2018 26