Breedon Group Plc · LSE:BREE
Breedon — FY2019 Earnings Presentation
30 slides from Breedon's earnings presentation, Mar 11, 2020
Slide 1: 2019 Full-Year Results
2019 FULL-YEAR RESULTS 11 March 2020 BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 1
Slide 2: 2019 Results Agenda and Presenters
2019 RESULTS AGENDA PRESENTERS Introduction and highlights Pat Ward Group Chief Executive Group financial review Rob Wood Group operational review Group Finance Director Q&A BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 2
Slide 3: 2019 Highlights
2019 HIGHLIGHTS • Excellent performance in challenging conditions • Improved results from all three Divisions • Strong cash flow reduced post IFRS 16 closing Leverage to 1.6x • Integration of Lagan largely completed • Acquisition of Roadway strengthened our position in North Wales • Capital Concrete
Slide 4: Rob Wood, Group Finance Director
ROB WOOD Group Finance Director BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 4
Slide 5: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS Revenue Underlying EBIT* Underlying EBIT margin* £929.6m £116.6m 12.5% FY 2018: £862.7m +8% FY 2018: £103.5m +13% FY 2018: 12.0% +0.5ppt Profit before taxation Underlying basic EPS* Net debt £94.6m 5.08p £290.3m FY 2018: £79.9m +18% FY 2018: 4.70p +8% Dec 2018: £310.7m * Un
Slide 6: Financial Highlights Excluding the Impact of IFRS 16
2019 FINANCIAL HIGHLIGHTS EXCLUDING THE IMPACT OF IFRS 16 Revenue Underlying EBIT Underlying EBIT margin £929.6m £115.6m 12.4% Unchanged Reported: £116.6m Reported: 12.5% Profit before taxation Underlying basic EPS Net debt £95.9m 5.15p £246.7m Reported: £94.6m Reported: £5.08p Reported: £290.3m BRE
Slide 7: Income Statement
2019 INCOME STATEMENT 2018 2019 £ million £ million Variance Revenue 862.7 929.6 +8% Underlying EBITDA 154.4 180.2 +17% Depletion & depreciation (52.6) (65.2) Underlying operating profit 101.8 115.0 +13% Share of associate and joint ventures 1.7 1.6 Underlying EBIT 103.5 116.6 +13% Interest (11.8) (
Slide 8: Segmental Performance
2019 SEGMENTAL PERFORMANCE 2018 2019 2018 2019 Underlying Underlying Underlying Underlying EBIT EBIT EBIT EBIT £ million £ million Variance margin margin Variance Great Britain 61.4 62.8 +2% 10.1% 10.2% +0.1ppt Ireland 20.9 26.8 +28% 13.4% 13.3% -0.1ppt Cement 31.4 36.3 +16% 17.8% 19.5% +1.7ppt Cent
Slide 9: Product Volumes
2019 PRODUCT VOLUMES Volume data have been rounded to the nearest 0.1 million BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 9
Slide 10: Net Debt Movement
2019 NET DEBT MOVEMENT BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 10
Slide 11: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 11
Slide 12: Track Record
TRACK RECORD BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 12
Slide 13: Pat Ward, Group Chief Executive
PAT WARD Group Chief Executive BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 13
Slide 14: Highlights: GB
2019 HIGHLIGHTS: GB Market backdrop GB total construction output (£bn) • Total construction output +0.6% 163.1 161.7 • Infrastructure strongest sector: output +6.2% 160.5 160.6 161.2 • All key product volumes down • Improved selling prices, more benign input costs • As always, significant regional v
Slide 15: Highlights: Ireland
2019 HIGHLIGHTS: IRELAND Market backdrop RoI construction output €bn • RoI construction output +8.0% • Strong RoI housing performance: +33.6% 25.8 27.9 29.6 30.3 • Total NI construction output +1.2% 23.8 Progress • Completed New Ross Bypass & Dublin Airport • Lagan quarry network extended in RoI • C
Slide 16: Highlights: Cement
2019 HIGHLIGHTS: CEMENT Market backdrop • Market conditions in GB broadly stable • Irish market challenging outside Dublin Progress • All three shutdowns completed on time and budget • Hope kiln reliability maintained at high level • Hope raw mill drive and kiln shell replacement completed • Average
Slide 17: Acquisition of CEMEX Assets
ACQUISITION OF CEMEX ASSETS • Quality UK assets, underpinned by c170m tonnes of mineral reserves & resources • Around 650 talented and experienced employees • Infills six key regional markets, strengthening our GB footprint • Enables significant step-change in development of national asphalt strateg
Slide 18: Progress on ESG
2019 PROGRESS ON ESG • Confirmed commitment to GCCA Sustainability Charter To make a material • SECR reporting included in Annual Report difference to the lives of 12 months early our colleagues, customers and communities • Non-exec Chairman and two new non- exec directors welcomed • Appointed Group
Slide 19: Group Strategy
GROUP STRATEGY BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 19
Slide 20: 2020 Group Outlook
2020 GROUP OUTLOOK Market - GB • Overall flat construction output in 2020, growing into 2021 • However, 8% growth in infrastructure forecast in 2020-21 • Significant regional variations Market - Ireland • RoI construction output forecast to grow by 9% in 2020-21 • NI steady 0.8% average construction
Slide 21: Q&A
Q&A BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 21
Slide 22: Appendices
APPENDICES BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 22
Slide 23: Business Model
BUSINESS MODEL BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 23
Slide 24: Key Performance Indicators
KEY PERFORMANCE INDICATORS BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 24
Slide 25: Key Performance Indicators
KEY PERFORMANCE INDICATORS BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 25
Slide 26: MPA Aggregates Volumes: MAT
MPA AGGREGATES VOLUMES: MAT 170 150 million tonnes 130 110 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 26
Slide 27: MPA Asphalt Volumes: MAT
MPA ASPHALT VOLUMES: MAT 27 25 million tonnes 23 21 19 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 27
Slide 28: MPA RMX Volumes: MAT
MPA RMX VOLUMES: MAT 24 22 million cubic metres 20 18 16 14 12 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 28
Slide 29: Disclaimer
The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in any security and should not be considered as inves
Slide 30: 2019 Full-Year Results
2019 FULL-YEAR RESULTS 11 March 2020 BREEDON GROUP: 2019 FULL YEAR RESULTS 11 March 2020 30