Nomination and Corporate Governance  Committee’s time allocation in 2012 65% 10% 20% Board renewal/succession planning/ Committee composition Board evaluation Corporate governance developments/report  to shareholders Review of Committee’s performance 5% In accordance with its terms of reference, he will  step down as a member of the  Audit Committee following the Annual General Meeting in May  2013. On the recommendation of the  Nomination  and Corporate Governance Committee  the Board  has appointed Ernst Bärtschi to succeed Jan  Maarten as  Audit Committee  Chairman. Ernst has  been a member of the  Audit Committee  since  March 2012 and is one of that Committee’s  designated financial experts. We will be reviewing  the membership of the  Audit Committee  in the  coming months. As reported to shareholders in the 2011 Annual  Report, we recommended that the Board  appoint a UK-based service provider to facilitate  the external evaluation of the Board. The  Committee agreed the terms of reference of the  chosen provider, ICSA Board Evaluation (ICSA).  The outcome of the evaluation and ICSA’s  recommendations are set out on page 42. The next external evaluation will be carried out in 2015. We also considered developments in the area of  corporate governance. In relation to the changes  to the UK Corporate Governance Code published  by the FRC in September 2012 and which will  apply to CRH for the financial year ending on 31  December 2013, we have considered whether the  Audit Committee  should undertake additional  work to provide advice to the Board on whether  the Annual Report and accounts, taken as a  whole, is fair, balanced and understandable. We  concluded that, at present, this should remain the  collective responsibility of the full Board. However,  this matter will be kept under review.  During 2013 we will continue our work on Board  renewal and refreshment. In addition, we will  monitor developments in the EU regarding the  implementation of the corporate governance plan  announced in December 2012. This may lead to  the introduction of new measures aimed at  enhancing transparency and increasing  shareholder engagement, although some of the  proposals cover issues where CRH already has  suitable measures in place.  Nomination and Corporate  Governance Committee Chairman February 2013 Nicky Hartery  Key areas of focus for 2013  CRH 49