Finance Review The key aspects of CRH’s 2012 results are highlighted in the Chief Executive’s  overview on page 13. Improved trading for our Americas segments, reflecting  an overall pick-up in economic activity and a strong recovery in residential  construction, was more than offset by the impact of slowing momentum in  the economies of our major European markets. Table 1 overleaf analyses the  change in results from 2011 to 2012. The Group remains in a very strong and flexible financial position with  €1.8 billion of cash, cash equivalents and liquid investments together with  €1.8 billion of undrawn committed bank facilities at year-end; year-end cash  balances would cover all debt maturities in 2013 and 2014. Net debt of just  under €3 billion at year-end 2012 was €0.5 billion lower than year-end 2011.  The net debt to EBITDA ratio at end-2012 was 1.8 times (2011: 2.1 times) and, based on net debt-related interest costs of €258 million (excluding  non-debt-related financial expenses of €31 million (2011: €28 million),  EBITDA/net interest cover for the year was 6.4 times (2011: 7.2 times). Table 1 on page 18 summarises the key components of CRH’s performance  in 2012. Additional detail on the sales, EBITDA and operating profit for each of CRH’s  six reporting segments is set out in the reviews on pages 24 to 35. An 8% strengthening of the US Dollar over 2011 has been the main factor  in the positive exchange effects for 2012, adding approximately 4% to both  sales and pre-tax profits. Acquisitions completed in 2011 and 2012 contributed incremental sales  revenue of €603 million and operating profit of €33 million in 2012. The impact  of divested activities was a negative €389 million in sales and €23 million at  operating profit level. We continue to review and, when required, extend our cost reduction  programme. Costs of €60 million incurred in 2012 to implement these  savings were similar to last year (2011: €61 million).  Total impairment charges for 2012 at €174 million were significantly higher  than last year (2011: €32 million), and included €146 million related to  our 26% associate stake in Uniland, the Spanish cement producer. The  associates’ impairment of €11 million in 2011 related to our investment in  French distribution business Trialis which was divested in March 2011.  Revenue from ongoing operations decreased by €384 million (2%) in 2012,  with Europe segments declining 6% whereas Americas segments grew  3%. Competition remained intense, limiting our ability to recover input cost  increases, and as a result organic operating profit declined by €62 million. Total net finance costs of €289 million included discount unwinding and  pension-related financial expenses of €31 million (2011: €28 million). Interest  on net debt increased to €258 million (2011: €229 million), due to the  stronger US Dollar, the ending of interest capitalisation on major cement plant  projects, the additional cost of our early-2012 €500 million bond issue and  lower interest income. Key Components of 2012 Performance  “The Group remains in a very  strong and flexible financial  position with €1.8 billion of cash, cash equivalents and  liquid investments together  with €1.8 billion of undrawn  committed bank facilities  at year-end. Year-end cash  balances would cover all debt  maturities in 2013 and 2014.” Maeve Carton CRH 17