Europe Products Results Analysis of change € million % Change 2012 2011 Total Change Organic Acquisitions  Divestments Restructuring/ Impairment Exchange Sales revenue  -6% 2,481 2,648 -167 -111 +125 -207 - +26 EBITDA -22% 152 194 -42 -51 +15 -6 -3 +3 Operating profit -73% 18 66 -48 -48 +9 +1 -12 +2 EBITDA/sales 6.1% 7.3% Op.profit/sales 0.7% 2.5% EBITDA and operating profit exclude profit on disposals  Pension curtailment gains were nil (2011: €17 milllion) Restructuring costs amounted to €27 million (2011: €24 million)  Impairment charges of €24 million were incurred (2011: €15 million) Clay Products (10% of EBITDA) Lightside Building Products (40% of EBITDA) Concrete Products (50% of EBITDA) Outlook Europe Products experienced very difficult trading conditions in 2012. In  particular, the first quarter was significantly impacted by an extremely harsh  winter and Eurozone economic difficulties continued to affect business  confidence, especially in the Netherlands. Although the negative trend eased  somewhat in the second half of the year, overall like-for-like sales were down  4% on 2011. In response to these difficult trading conditions, we implemented  significant cost reductions, rationalisation and plant closures.  Acquisition spend for the year amounted to €151 million on a total of four  transactions, of which the largest was the acquisition of a European  RMI-oriented Shutters & Awnings business in Germany. The divestments  impact above mainly reflects the sale in 2011 of our Insulation and Climate  Control business together with the disposal in 2012 of our German-based  access controls business. Concrete Products was significantly affected by difficult trading conditions in the  Netherlands, Germany, Belgium and France, but the impact was partly offset  by improvements in Denmark and Eastern Europe. Further significant cost  reduction initiatives have been implemented across all activities and countries.  Lower trading combined with restructuring costs resulted in operating profit  falling significantly below last year. The Architectural operations (tiles, pavers, blocks) were negatively impacted  by the deteriorating market backdrop in the Netherlands, Belgium and France.  Sales were lower than in 2011 due to continuing weak consumer confidence  and lower government spending in landscaping and civil network products in  France, in particular. Despite lower sales and operating profit compared with  2011, our German landscaping activities performed better than expected given  the challenging market conditions.  Our Structural business experienced very difficult market conditions in the  Netherlands where residential and non-residential construction activity  declined. Further restructuring initiatives were announced and are being  implemented in order to adjust our cost base and production footprint to the  changed market conditions. In Belgium we also saw a negative impact on  sales and operating profit due to continuing market deterioration, but this was  partly offset by the continued strong performance of our specialities business,  which supplies the residential, industrial and agricultural sector. Our business  in Denmark continued to perform strongly and showed further improvement in  operating profit compared with last year. Trading conditions for our activities  in Eastern Europe, especially Hungary and Poland, showed improvement and  operating profit increased. Our Products businesses are predominantly located in the Netherlands,  Germany, Belgium and France and are principally exposed to new construction.  We expect 2013 to be another difficult year with little progress on 2012. We  believe that market conditions in the Netherlands, Belgium, UK and France  will be challenging and we are cautious about Germany. We are more positive  about Denmark, the Nordic countries and growth outside of Europe, especially  in Asia. Against this backdrop, we will continue our efforts to reduce our cost  base, rationalise our manufacturing footprint and adapt to market conditions. In Construction Accessories operating profit was lower due to strong price  competition in Mainland European markets. In contrast, the UK market  experienced increased levels of activity in the London area. Our activities in  China, after a difficult start, are making progress. In April 2012, we acquired a  business in southeast Asia, expanding our footprint in this developing region. During 2012, our footprint in the attractive RMI-focussed Shutters & Awnings  segment was significantly expanded by an acquisition in Germany. The  underlying Shutters & Awnings business in the Netherlands was impacted by  negative economic sentiment and operating profit, while still at a satisfactory  level, was lower than in 2011.  The Outdoor Security business was negatively impacted by the very difficult  trading conditions across Europe, as sales and operating profit in the  Netherlands, Germany, France and the UK declined. However, the performance  of our Nordic and Mobile Fencing activities was broadly in line and Germany  in particular has begun to benefit from restructuring activities started in 2011. Lightside Building Products activities also showed a decline compared with  2011 but not to the same extent as our Concrete and Clay Products activities.  Both new and repair and maintenance activity declined in the United Kingdom  in 2012 and industry brick volumes were down 3% versus last year. While we  also saw lower volumes at our UK brick business we achieved higher average  prices and, excluding the pension gain in 2011, operating profit was maintained  broadly in line with last year. Difficult trading conditions were experienced in  Mainland Europe, with particularly challenging markets in the Netherlands. This  resulted in lower overall sales and operating profit for our Clay business. 30 CRH