Operations Review – Distribution Europe Distribution Americas Distribution CRH distributes building materials to general building contractors, Sanitary,  Heating and Plumbing (SHAP) specialist contractors and Do-It-Yourself (DIY)  customers in Europe and to professional roofing/siding and interior products  contractors in the United States. Europe Distribution’s strategy is to seek  opportunities to increase its network density in the  largely unconsolidated core European markets  while also investing in other attractive segments  of building materials distribution. Organisational  initiatives leverage expertise between DIY and  builders merchants and use best-in-class IT to  deliver operational excellence, optimise the supply  chain and provide superior customer service.  From a solid base in the Netherlands, CRH has  expanded its leading Builders Merchants positions  in Switzerland, Germany, Austria and France in  addition to growing its DIY “Gamma” format in  the Benelux. Substantial opportunities remain to  increase our existing network in core European  markets and to establish new platforms aimed at  growing our exposure to RMI market demand. An  example is CRH’s entry into the developing SHAP  distribution market through the acquisition of a  Swiss provider of high-end sanitary ware, since  replicated in contiguous markets in Germany and  Belgium. Europe Distribution employs approximately  11,900 people at over 780 operating locations. Americas Distribution’s strategy is focussed on  being the supplier of choice to the professional  roofing and siding contractor and to applying  this successful distribution model to the Interior  Products segment. Demand in the Exterior  Products business is largely influenced by residential  and commercial replacement activity with the key  products having an average life span of 25 years.  The Interior Products division has less exposure to  replacement activity as demand is largely driven  by the new commercial construction market.  State-of-the-art IT, disciplined and focussed cash  management and well-established procurement  and commercial systems support supply chain  optimisation and enable CRH to provide superior  customer service. Operating in 31 States, growth opportunities include  investment in new regions, in complementary  private label and energy-saving product offerings,  and in other attractive building materials distribution  segments that service professional dealer networks.  Employees total approximately 3,500 at over 180  operating locations. Top: CRH Bouwmaat, builders merchants in the  Netherlands, provide a one-stop wholesale cash  and carry facility with a wide range of products to  meet the needs of contractors in the RMI market. Bottom: Allied, CRH’s distribution brand in the  United States, supplied the tiles needed to  reconstruct the roof of New Hope Presbyterian  Church in Castle Rock, Colorado, following a  severe hail storm in June 2012. 32 CRH