CRH – Servicing the Breadth of Construction Demand

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					CRH – Servicing the Breadth of Construction Demand

Materials: The Fundamentals                                                           Products: Constructing the Frame
CRH operates vertically integrated primary materials businesses with strategically-   CRH manufactures architectural and structural concrete products for use in
located long-term reserves in all its major markets. With an emphasis on              residential, non-residential and infrastructure applications. These include
servicing infrastructure and new construction demand, operations include              building systems and engineered concrete solutions for use in the electrical,
cement, aggregates, asphalt and readymixed concrete. CRH has permitted                transportation, drainage and communications industries; construction
aggregates reserves totalling approximately 13 billion tonnes worldwide:              accessories and components to assist in the construction process; and
circa 10 billion tonnes in the Americas and circa 3 billion tonnes in Europe.         architectural products to enhance the facade and surroundings of buildings.

Strategy                                                                              Strategy
To build and maintain strong vertically integrated businesses with leading            To build and expand leadership positions in targeted markets in the manufacture
market positions.                                                                     of structural and architectural concrete products and related accessories.

Implementation focuses on accumulating long-term permitted reserves,                  Implementation focuses on continuously improving the businesses with state-
continuously investing in plant and equipment for product quality, operational        of-the-art IT, exchange of process and product know-how and leveraging
efficiency and customer service while seeking value-creating expansion                engineering, project management, logistics and marketing skills to add more
opportunities via greenfield development and acquisitions in selected markets.        value for customers, while simultaneously pursuing new product and new region

Annualised production volumes                                                         Annualised production volumes

Aggregates – 225.9 million tonnes                                                     Structural/Precast Concrete – 10.6 million tonnes
Cement – 16.5 million tonnes                                                          Architectural Concrete – 29.3 million tonnes
Asphalt – 49.6 million tonnes
Readymixed Concrete – 20.9 million cubic metres

                                        60%                                    EBITDA                                  15%

4   CRH
CRH, a group centred in heavy materials and construction elements, embraces
the benefits of vertical integration in manufacturing and of horizontal integration in
servicing the breadth of construction demand. Strategy implementation underpins
performance and has enabled CRH to achieve positions of scale in each core
business area.

Products: Completing the Envelope                                                      Distribution: Fit-out and Renewal
CRH produces a range of complementary value-added building products to                 CRH distributes building materials to general building contractors and
complete the building envelope and to optimise the climate control and energy          Do-It-Yourself (DIY) customers in Europe and to professional roofing/siding
efficiency of buildings. Products include architectural glass, clay brick and block,   and interior products contractors in the United States. With a network of 717
insulation materials, entrance control and climate control products, each of           branches in Europe and 202 branches in the United States, CRH is now a
which serves to provide a balanced exposure to demand drivers.                         leading international player in building materials distribution.

Strategy                                                                               Strategy
To develop current strong positions and seek new platforms for growth in these         To build and grow a strong network of professional builders merchants and DIY
complementary product segments.                                                        stores primarily in metropolitan areas.

Implementation focuses on increasing penetration for CRH products, edge                Implementation focuses on organisational initiatives and best-in-class IT to
expansion into new architectural products and solutions, developing positions          realise operational excellence, optimise the supply chain and provide superior
to benefit from scale and best practice, and creating competitive advantage            customer service, while seeking opportunities to invest in new regions and other
through product, process and end-use innovation.                                       attractive segments of building materials distribution.

Annualised production volumes                                                          Outlets

Clay – 3.7 million tonnes                                                              Builders Merchants – 673 stores
Glass/Rooflights – 12.4 million square metres                                          DIY – 246 stores
Insulation – 6.0 million cubic metres
Fencing & Security – 11.5 million lineal metres

                                         10%                                   EBITDA                                   15%

                                                                                                                                                               CRH     5

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Description: CRH – Servicing the Breadth of Construction Demand