Chairman’s Statement CRH’s operations across the globe faced mixed economic circumstances  during 2012. In our main markets, there was an ongoing improvement in  overall economic activity in the United States, which saw a welcome recovery  in residential construction, while consumer and investor confidence continued  to slow in European economies, particularly in the Netherlands. Against this  backdrop, Group profit before tax amounted to €674 million and earnings per  share were 76.5c. The profit and earnings per share outturns represented  declines of 5% and 7% respectively, compared with 2011 outturns of  €711 million and 82.6c. “CRH’s operations across the globe  faced mixed economic circumstances  during 2012. Management continue  to focus on implementing cost  savings initiatives and on operational  excellence. In the medium to longer  term, as economic growth returns,  the Group is well positioned to benefit  from the significant efforts made over  recent years.” The Group’s results and the performance of the separate business segments  are covered in detail in the Chief Executive’s review and in the Finance and  Operations reviews which follow. In August 2012 the Board decided to maintain the interim dividend of  18.5c. This took into account anticipated strong second-half cash flows  and the Group’s strong balance sheet. With full-year operating cash flow  before dividends of €0.5 billion and taking into account 2012 profit, capital  expenditure, development activity and portfolio rationalisation, the Board is  recommending a final dividend of 44c per share. If approved at the Annual  General Meeting in May 2013, this will maintain the full year 2012 dividend  of 62.5c per share. Total acquisition activity for 2012 was over €0.6 billion, including deferred  consideration of approximately €0.1 billion. This reflects CRH’s long- term value-based approach to developing our balanced portfolio. The  Materials transactions in the United States, including the acquisition of a  majority shareholding in Trap Rock Industries, an integrated aggregates  and asphalt business in New Jersey, bring strong asset-backed resource  positions and, when combined with existing operations, provide significant  opportunities for vertical integration. In Europe we added to our downstream  materials activities in Finland strengthening our presence in that country.  In the Products segment the 2012 acquisitions included seven concrete  paving facilities in Canada and Florida and a significant Shutters & Awnings  enterprise in Germany. These acquisitions reflect our focus on RMI and  sustainability segments and on the optimisation of production networks in  core regions. Our Distribution additions similarly reflected an RMI emphasis  with the ongoing development of our Sanitary, Heating and Plumbing  business in Europe. CRH’s strategy in developing regions is to achieve leading regional market  positions, initially through premium resource-backed assets and, over time,  to pursue vertical integration and develop downstream activities. CRH is  a 26% shareholder in Yatai Building Materials (YBM). YBM is the largest  cement producer in northeast China, with operations in the provinces of Jilin,  Heilongjiang and Liaoning. Since CRH’s purchase of its 26% shareholding in  early-2009, the business has nearly doubled in size. CRH also has operations  Myles Lee, Group Chief Executive, has confirmed to the Board his intention  to retire from CRH at the end of 2013 having reached the age of 60, and  following completion of a 5 year term as Chief Executive and 10 years as an  Executive Director. Myles joined CRH in 1982, joining the Board in November  2003 as Finance Director, later becoming Chief Executive in January 2009. Myles has contributed very significantly over an extended period to the  development and progress of CRH and continues to do so. By advising the  Significant portfolio changes occurred during 2012. These included the  sale of CRH’s 49% shareholding in our Portuguese cement joint venture,  Secil, in May. Our European Products segment also disposed of Magnetic  Autocontrol which manufactures and supplies access control products. Total  proceeds from disposals in 2012 amounted to €0.86 billion. in India, through our My Home Industries Limited 50% joint venture, which  has a state-of-the-art, highly efficient, cement plant in Andhra Pradesh. India  currently has a low per capita cement usage, which provides CRH with an  opportunity to grow with the industry and to build a significant presence over  time. In Russia we have a dedicated base in Moscow focussed on identifying  development opportunities. In addition, we are in the process of opening a  regional headquarters in Singapore, details of which are set out in the Chief  Executive’s review on page 13. Portfolio Review Development Activity Dividend Developing Regions Board and Senior Management 8 CRH