After a somewhat okay 2023, industrial stocks could post more gains. Last year, the Industrial Select Sector SPDR Fund (NYSEARCA:XLI) gained 14%, lagging the S&P 500’s return. Although the sector is fully valued at 19 times the next 12 month’s earnings, there are several tailwinds.So, what are some of these tailwinds? First is reshoring and nearshoring, whereby U.S. companies relocate their manufacturing footprints locally or to Mexico. That addresses geopolitical tensions and the supply chain challenges ex ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

Our next question comes from the line of Anthony Pettinari with Citigroup. Anthony Pettinari You gave some helpful commentary on 2024. And I'm just wondering, in Americas Materials, with positives from public spending, but also some questions around residential. Is your expectation that you can grow aggregates volumes in 2024 in Americas Materials? And then maybe a similar question. When you look at your operating rates in cement in Americas, is there room for organic growth in '24, is that your expectation ...

[Financial & Operational Highlights](index=2&type=section&id=Financial%20%26%20Operational%20Highlights) CRH delivered strong H1 2023 results with significant growth in sales and EBITDA, driven by robust performance in the Americas and strategic capital allocation, alongside a planned transition to a US primary listing [H1 2023 Key Financials](index=2&type=section&id=H1%202023%20Key%20Financials) CRH delivered a strong first-half performance in 2023, with significant growth across all key metrics. Sales increased by 8% to $16.1 billion, and EBITDA rose by 14% to $2.5 billion, resulting in an improved EBITDA margin of 15.6%. Profit after tax from continuing operations grew 26% to $1.2 billion, with EPS up 31% to $1.58 H1 2023 Summary Financials | Summary Financials | H1 2023 | Change | |:---|:---|:---| | Sales | $16.1bn | +8% | | EBITDA | $2.5bn | +14% | | EBITDA Margin | 15.6% | +90bps | | Operating Cash Flow | $1.0bn | +61% | | EPS (continuing ops) | $1.58 | +31% | - On a like-for-like basis, which adjusts for acquisitions and currency effects, H1 2023 sales were 4% ahead of the prior year, and EBITDA was 7% ahead[89](index=89&type=chunk) [Trading Overview](index=2&type=section&id=Trading%20Overview) The Group's performance was driven by strong results in the Americas, where both Materials and Building Solutions segments saw double-digit EBITDA growth. Europe Materials Solutions also performed well with a 13% EBITDA increase, supported by strong pricing. However, Europe Building Solutions faced challenges from adverse weather and softer residential demand, leading to a 15% decline in EBITDA - **Americas Materials Solutions:** EBITDA was 13% ahead of 2022, as strong pricing and commercial management offset higher input costs and lower volumes due to unfavorable weather[70](index=70&type=chunk) - **Americas Building Solutions:** EBITDA grew by 25%, benefiting from acquisitions and strong commercial progress that counteracted weather-related impacts on activity[90](index=90&type=chunk) - **Europe Materials Solutions:** EBITDA increased by 13%, driven by strong pricing and cost savings that more than offset inflation and lower activity levels[71](index=71&type=chunk) - **Europe Building Solutions:** EBITDA was 15% behind the prior year, impacted by extended winter weather and softer residential demand[91](index=91&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) CRH is increasing cash returns to shareholders, highlighted by a 4% increase in the interim dividend to $0.25 per share. The company is also executing a substantial $3 billion share buyback program, with $1 billion completed in the first half of the year and another $1 billion tranche underway - The Board increased the interim dividend by **4% to $0.25 per share**[67](index=67&type=chunk)[92](index=92&type=chunk) - A **$3 billion share buyback program** is underway. **$1 billion** was completed in H1 2023, and a further **$1 billion** tranche was announced on June 30, 2023, to be completed by September 22, 2023[92](index=92&type=chunk) [2023 Trading Outlook](index=3&type=section&id=2023%20Trading%20Outlook) The company expects continued robust infrastructure demand in North America, supported by federal and state funding. While residential markets are expected to remain subdued, the overall outlook is positive. CRH anticipates full-year EBITDA of approximately $6.2 billion and net cash inflow from operating activities of around $5 billion Full-Year 2023 Guidance | Metric | Expected FY 2023 | FY 2022 Actual | |:---|:---|:---| | Group EBITDA | c. $6.2 billion | $5.6 billion | | Net cash inflow from operating activities | c. $5 billion | $4.0 billion | | Year-end net debt to EBITDA ratio | 1.1x to 1.3x | 0.9x | - North American operations are expected to benefit from robust infrastructure demand and government funding in clean energy and manufacturing. European markets are expected to see solid infrastructure and non-residential activity, though residential construction will remain challenging[57](index=57&type=chunk) [Transition to US Primary Listing](index=6&type=section&id=Transition%20to%20US%20Primary%20Listing) CRH shareholders overwhelmingly approved the transition to a US primary listing on the New York Stock Exchange (NYSE), which is expected to become effective on or around September 25, 2023. The company believes this move will provide increased commercial, operational, and acquisition opportunities, particularly in North America, which represents about 75% of Group EBITDA - Shareholders approved the transition to a US primary listing at an EGM on June 8, 2023, with the change expected to be effective around September 25, 2023[56](index=56&type=chunk)[89](index=89&type=chunk) - The company anticipates the US listing will accelerate its integrated solutions strategy and deliver higher profitability, returns, and cash for shareholders[36](index=36&type=chunk) [Segment Performance Review](index=3&type=section&id=Segment%20Performance%20Review) The Group's segments showed varied performance, with strong growth in Americas driven by pricing and acquisitions, while European segments faced mixed conditions due to weather and residential demand [Americas Materials Solutions](index=3&type=section&id=Americas%20Materials%20Solutions) This segment delivered a strong first half, with sales up 9% to $6.1 billion and EBITDA up 13% to $925 million. Performance was driven by solid price progression across all business lines, which more than offset lower volumes caused by unfavorable weather in some regions. Operating profit saw a significant 26% increase Americas Materials Solutions H1 Performance ($ million) | Metric | H1 2022 | H1 2023 | % Change | |:---|:---|:---|:---|\ | Sales Revenue | 5,546 | 6,059 | +9% | | EBITDA | 820 | 925 | +13% | | Operating Profit | 405 | 510 | +26% | | EBITDA Margin | 14.8% | 15.3% | +50bps | - On a like-for-like basis, sales increased by **8%** and EBITDA by **12%**[44](index=44&type=chunk) - Pricing was strong, with aggregates prices up **15%**, cement prices up **17%**, asphalt prices up **13%**, and readymixed concrete prices up **14%**[45](index=45&type=chunk)[46](index=46&type=chunk) [Americas Building Solutions](index=4&type=section&id=Americas%20Building%20Solutions) Americas Building Solutions reported robust growth, with sales increasing 21% to $3.8 billion and EBITDA up 25% to $810 million. This performance reflects strong contributions from prior-year acquisitions, particularly Barrette Outdoor Living, and solid commercial progress. On a like-for-like basis, sales and EBITDA were ahead by 1% and 3% respectively Americas Building Solutions H1 Performance ($ million) | Metric | H1 2022 | H1 2023 | % Change | |:---|:---|:---|:---|\ | Sales Revenue | 3,150 | 3,809 | +21% | | EBITDA | 646 | 810 | +25% | | Operating Profit | 534 | 633 | +19% | | EBITDA Margin | 20.5% | 21.3% | +80bps | - Sales in Outdoor Living Solutions were ahead, driven by good commercial progress and the contribution from the Barrette Outdoor Living acquisition (July 2022)[59](index=59&type=chunk) - Building & Infrastructure Solutions sales benefited from increased demand and robust public funding in telecommunications, water, and energy utility markets[52](index=52&type=chunk) [Europe Materials Solutions](index=4&type=section&id=Europe%20Materials%20Solutions) Sales for Europe Materials Solutions remained flat compared to the prior year at $4.8 billion, but were 5% ahead on a like-for-like basis. Strong pricing offset lower activity levels in most regions. EBITDA grew 13% to $625 million (14% on a like-for-like basis), driven by pricing discipline, operational excellence, and cost savings Europe Materials Solutions H1 Performance ($ million) | Metric | H1 2022 | H1 2023 | % Change | |:---|:---|:---|:---|\ | Sales Revenue | 4,772 | 4,792 | 0% | | EBITDA | 555 | 625 | +13% | | Operating Profit | 308 | 383 | +24% | | EBITDA Margin | 11.6% | 13.0% | +140bps | - Sales in Western Europe were well ahead of 2022, driven by the UK, Ireland, and France, with positive pricing offsetting lower volumes from subdued new-build residential activity[23](index=23&type=chunk) - In Central & Eastern Europe, strong pricing across all countries more than offset softer demand, leading to sales and operating profit growth[24](index=24&type=chunk) [Europe Building Solutions](index=5&type=section&id=Europe%20Building%20Solutions) This segment faced a challenging first half, with sales down 4% to $1.5 billion (6% behind on a like-for-like basis). The decline was driven by lower volumes due to extended winter weather and subdued new-build residential activity. Consequently, EBITDA and operating profit were down 15% and 27% respectively Europe Building Solutions H1 Performance ($ million) | Metric | H1 2022 | H1 2023 | % Change | |:---|:---|:---|:---|\ | Sales Revenue | 1,530 | 1,476 | -4% | | EBITDA | 189 | 160 | -15% | | Operating Profit | 138 | 101 | -27% | | EBITDA Margin | 12.4% | 10.8% | -160bps | - A robust performance from Infrastructure Products was offset by slower markets in Outdoor Living Solutions and Construction Accessories[29](index=29&type=chunk) - Outdoor Living Solutions sales declined due to unfavorable weather and a strong prior year comparative, with market demand slowing in Germany, Belgium, and Slovakia[30](index=30&type=chunk) [Condensed Interim Financial Statements](index=7&type=section&id=Condensed%20Interim%20Financial%20Statements) The Group reported increased revenue and profit in H1 2023, with higher operating cash flow, while total equity decreased and net debt increased due to share buybacks and acquisitions [Condensed Consolidated Income Statement](index=7&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2023, the Group reported revenue of $16.1 billion, an increase from $15.0 billion in H1 2022. Operating profit from continuing operations rose to $1.63 billion from $1.39 billion. Profit before tax from continuing operations was $1.51 billion, and the Group profit for the period was $1.18 billion H1 2023 Income Statement Highlights ($ million) | Metric | H1 2023 | H1 2022 (Continuing Ops) | |:---|:---|:---|\ | Revenue | 16,136 | 14,998 | | Gross Profit | 5,281 | 4,755 | | Group Operating Profit | 1,627 | 1,385 | | Profit Before Tax | 1,510 | 1,203 | | Group Profit for the Period (Continuing Ops) | 1,178 | 938 | - Basic earnings per share from continuing operations increased to **$1.58** from **$1.21** in the prior year period[41](index=41&type=chunk) [Condensed Consolidated Balance Sheet](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2023, the Group's total assets stood at $46.0 billion, a slight increase from $45.2 billion at year-end 2022. Total equity decreased to $21.3 billion from $22.3 billion, primarily due to share buybacks. Net debt increased to $6.9 billion from $5.1 billion at the end of 2022 Balance Sheet Summary ($ million) | Metric | 30 June 2023 | 31 Dec 2022 | |:---|:---|:---|\ | **Assets** | | | | Total Non-current Assets | 30,974 | 30,387 | | Total Current Assets | 15,009 | 14,801 | | **Total Assets** | **45,983** | **45,188** | | **Equity & Liabilities** | | | | Total Equity | 21,346 | 22,337 | | Total Non-current Liabilities | 13,410 | 13,962 | | Total Current Liabilities | 11,227 | 8,889 | | **Total Equity and Liabilities** | **45,983** | **45,188** | - Net debt stood at **$6.9 billion** at June 30, 2023, compared to **$4.3 billion** at June 30, 2022. The increase is partly attributable to the **$1.9 billion** acquisition of Barrette Outdoor Living in H2 2022[37](index=37&type=chunk)[222](index=222&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group generated a net cash inflow from operating activities of $1.0 billion in H1 2023, a significant improvement from $0.6 billion in H1 2022, driven by higher profitability and lower working capital investment. Net cash outflow from financing activities was $1.8 billion, largely due to share buybacks ($0.96 billion) and dividend payments ($0.76 billion) Cash Flow Summary H1 2023 ($ million) | Metric | H1 2023 | H1 2022 | |:---|:---|:---|\ | Net cash inflow from operating activities | 998 | 621 | | Net cash (outflow)/inflow from investing activities | (906) | 2,125 | | Net cash outflow from financing activities | (1,845) | (1,470) | | (Decrease)/increase in cash and cash equivalents | (1,753) | 1,276 | [Notes to the Financial Statements](index=12&type=section&id=Notes%20to%20the%20Financial%20Statements) Key notes detail the drivers of performance, significant acquisitions, the impact of discontinued operations, and ongoing capital returns through dividends and share buybacks [Key Components of Performance (Note 2)](index=13&type=section&id=Key%20Components%20of%20Performance%20(Note%202)) The Group's 8% total sales growth to $16.1 billion was composed of a 4% organic increase, with the remainder from acquisitions. EBITDA grew 14% to $2.5 billion, with organic growth contributing 7% and acquisitions adding significantly. Pre-tax profit from continuing operations increased by 26%, with organic growth accounting for 19% of this increase H1 2023 Performance Bridge vs H1 2022 ($ million) | Metric | H1 2022 | Exchange | Acquisitions | Divestments | Organic | H1 2023 | |:---|:---|:---|:---|:---|:---|:---|\ | Sales | 14,998 | (208) | 813 | (86) | 619 | 16,136 | | EBITDA | 2,210 | (18) | 163 | 2 | 163 | 2,520 | | Pre-tax Profit | 1,203 | (6) | 41 | 50 | 222 | 1,510 | [Business Combinations (Note 13)](index=26&type=section&id=Business%20Combinations%20(Note%2013)) In the first half of 2023, the Group spent $0.2 billion on eight acquisitions. The largest was the acquisition of Ulricehamns Betong AB in Sweden. Total consideration for these acquisitions was $221 million, resulting in $78 million of goodwill. Post-period end, the Group acquired Hydro International, a provider of stormwater and wastewater solutions - The Group spent **$0.2 billion** on eight acquisitions in H1 2023[64](index=64&type=chunk) H1 2023 Acquisitions Summary ($ million) | Metric | Amount | |:---|:---|\ | Total Consideration | 221 | | Identifiable Net Assets Acquired | 143 | | Goodwill Arising | 78 | - Subsequent to June 30, 2023, the Group acquired Hydro International, enhancing its water management solutions portfolio in North America and Europe[65](index=65&type=chunk) [Discontinued Operations (Note 8)](index=20&type=section&id=Discontinued%20Operations%20(Note%208)) In April 2022, the Group completed the divestment of its Building Envelope business, which was classified as a discontinued operation. This resulted in a profit on disposal of $1.47 billion, recognized in H1 2022. There were no discontinued operations in H1 2023 - The divestment of the Building Envelope business was completed in April 2022[191](index=191&type=chunk) Results of Discontinued Operations - H1 2022 ($ million) | Metric | Amount | |:---|:---|\ | Revenue | 647 | | Operating Profit | 95 | | Profit on Disposals | 1,457 | | Profit Before Tax | 1,546 | | Profit After Tax | 1,168 | [Dividends (Note 7)](index=19&type=section&id=Dividends%20(Note%207)) The Board has declared an interim dividend of $0.25 per share, a 4% increase from the prior year. The dividend will be paid on November 22, 2023, to shareholders of record on October 20, 2023. Following the US listing change, the default payment currency will be US Dollar Dividend per Share | Dividend | Amount | |:---|:---|\ | 2023 Interim Dividend (Proposed) | $0.25 | | 2022 Interim Dividend (Paid) | $0.24 | - The ex-dividend date is October 19, 2023, and the payment date is November 22, 2023[188](index=188&type=chunk) [Share Buyback Programme (Note 16)](index=32&type=section&id=Share%20Buyback%20Programme%20(Note%2016)) CRH continued its share buyback program, returning $1.0 billion to shareholders in H1 2023. This brings the total cash returned since the program's inception in May 2018 to $5.1 billion. A further $1.0 billion tranche was announced on June 30, 2023, to be completed by September 22, 2023 - The Group returned **$1.0 billion** to shareholders via share buybacks in H1 2023[275](index=275&type=chunk) - Total cash returned under the program since May 2018 amounts to **$5.1 billion**[275](index=275&type=chunk) [Risk Factors & Forward-Looking Statements](index=34&type=section&id=Risk%20Factors%20%26%20Forward-Looking%20Statements) The Group identifies principal strategic, operational, and financial risks, alongside cautionary statements regarding forward-looking information and their inherent uncertainties [Principal Risks and Uncertainties](index=34&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces a range of risks inherent to its global operations. Key strategic risks include industry cyclicality, economic conditions, and portfolio management. Operational risks involve people management, supply chain continuity, and health and safety. Financial and compliance risks include taxation, financial instruments, laws and regulations, and IT/cyber security - **Strategic Risks:** Industry cyclicality, economic conditions, public policy, climate change, commodity competition, and portfolio management (M&A)[287](index=287&type=chunk)[288](index=288&type=chunk)[308](index=308&type=chunk) - **Operational Risks:** People management, securing strategic mineral reserves, health and safety, IT and cyber security, and supply chain continuity[10](index=10&type=chunk)[11](index=11&type=chunk)[290](index=290&type=chunk) - **Financial & Compliance Risks:** Financial instruments (interest rate, currency, credit), goodwill impairment, taxation, laws and regulations, and foreign currency translation[14](index=14&type=chunk)[15](index=15&type=chunk)[313](index=313&type=chunk) [Forward-Looking Statements](index=36&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding CRH's financial condition, results, and business strategy. These statements are subject to risks and uncertainties, and actual results could differ materially. The company disclaims any obligation to update these statements, and cautions readers not to place undue reliance on them - The document includes forward-looking statements concerning demand outlook, business strategy, financial capacity, the US listing transition, and decarbonisation targets[18](index=18&type=chunk)[295](index=295&type=chunk) - These statements are made under the "Safe Harbor" provisions of the US Private Securities Litigation Reform Act of 1995[316](index=316&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) This section provides a glossary of Alternative Performance Measures (APMs) used by CRH to assess and report its financial and operational performance [Glossary of Alternative Performance Measures (APMs)](index=32&type=section&id=Glossary%20of%20Alternative%20Performance%20Measures%20(APMs)) CRH uses several non-GAAP Alternative Performance Measures (APMs) to monitor performance, including EBITDA, Net Debt, and Organic Growth. EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortization, and other specific items. Organic measures exclude the impact of acquisitions, divestments, and currency translation - Key APMs include EBITDA, Net Debt, and Organic Revenue/EBITDA. These are used by management to assess performance and allocate resources[111](index=111&type=chunk)[277](index=277&type=chunk) Reconciliation of Group Profit to EBITDA (Continuing Ops, $m) | Metric | H1 2023 | H1 2022 | |:---|:---|:---|\ | Group Profit for the Period | 1,178 | 938 | | Add back: Income Tax Expense | 332 | 265 | | Add back: Finance Costs less Income | 127 | 177 | | Add back: Depreciation & Amortisation | 893 | 835 | | Other Adjustments | (10) | (5) | | **EBITDA** | **2,520** | **2,210** |

CRH 2022 Results Agenda Market Backdrop & Trading Performance Financial Performance & Capital Allocation Sustainability Update Accelerating Integrated Solutions Listing Considerations & Outlook Full Year Results 2022 1 Key Messages • Strong performance … further growth in sales, EBITDA, EPS, cash & returns • Margin expansion despite significant cost inflation • Strongest balance sheet in Group history … optionality for further value creation • FY dividend +5% … announcing $3bn share buyback over next 12 mon ...

Financial Performance - Total sales for 2022 reached $32.7 billion, representing a 12% increase compared to 2021[21] - EBITDA for 2022 was $5.6 billion, up 48% from $3.9 billion in 2021[21] - Operating profit increased by 17% to $3.9 billion in 2022, compared to $3.3 billion in 2021[22][23] - Earnings per share rose to $3.50 in 2022, up from $3.06 in 2021[24] - Dividend per share increased to $1.27 in 2022, compared to $1.21 in 2021[30] - Profit after tax for 2022 was $3.9 billion, up from $2.6 billion in 2021, while EBITDA increased to $5.6 billion from $5.0 billion[165] - Operating cash flow for 2022 was $4.0 billion, compared to $4.2 billion in 2021[165] - The company generated a Return on Net Assets (RONA) of 13.3%, which is an increase of 340 basis points since 2018[63] - The company has 22.8 billion tonnes of reserves and $26.8 billion in net debt, indicating strong resource availability and financial positioning[158] Sustainability Initiatives - The company aims for a 30% reduction in absolute carbon emissions by 2030 from a 2021 base year, aligning with its net-zero ambition by 2050[53] - CRH aims to achieve net-zero emissions by 2050, with a target of a 30% reduction in absolute carbon emissions by 2030[88] - The company is focused on low-carbon materials and has over 100 research and innovation projects underway[43][44] - The company is embedding its Purpose into operational and strategic processes to guide organizational culture[83] - The company is committed to zero harm and continues to invest in safety technologies[85] - The company is working towards delivering its sustainability ambitions by 2050, with a focus on circularity and climate resilience[86] - The company is focused on sustainability, including decarbonization, waste recycling, and water conservation, to enhance resilience and create circular supply chains[144] - The company aims to address global challenges such as decarbonization, waste, and water through its new sustainability framework[186] - Eqiom, part of the Europe Materials Division, is involved in constructing the first carbon-free district in Paris, covering approximately 34,000 m² with up to 80% low-carbon concrete, resulting in CO2 savings of approximately 40% overall[200] Strategic Growth and Innovation - The company has allocated approximately 60% of its capital over the last five years to value-accretive acquisitions and internal growth investments, with around 40% returned to shareholders through dividends and share buybacks[62] - The company spent $3.3 billion on acquisitions in 2022, significantly up from $1.5 billion in 2021, including the $2.0 billion acquisition of Barrette Outdoor Living[109] - CRH launched CRH Ventures and an Innovation Fund in 2022 to support sustainable product development[43] - The company is investing $250 million in a venturing and innovation fund to support the development of new technologies and solutions in North America and Europe[55] - The company is focused on operational and commercial excellence programs to build better businesses globally[60] - The company is expanding and building strength through scale and improving business operations[103] - The company is committed to investing in talent and growing skills to drive business performance[100] - The company is focused on developing innovative solutions to meet customer and community demands for sustainable construction[195] Market Position and Demand - CRH has positioned itself in resilient sectors of the construction market, reducing business cyclicality[50] - The company anticipates resilient demand in North America, supported by strong pricing and government funding initiatives in clean energy and manufacturing[125] - Construction demand is driven by significant infrastructure needs and a resurgence in non-residential demand, particularly in the US, where resilient RMI activity is noted in the Northeast and Midwest[131] - In Europe, resilient RMI demand and sustainable construction are observed, particularly in stable Western Europe, alongside significant new build and residential needs[132] - The global population is projected to grow by approximately 2.5 billion by 2050, increasing demand for infrastructure, residential, and commercial projects[135] - The global economy is forecasted to more than double in size by 2050, continuing to drive investment in infrastructure, residential, and commercial projects[139] Safety and Workforce - There were five reportable fatalities in 2022, involving one employee and four contractors, highlighting the company's commitment to safety initiatives[85] - The company employs approximately 75,800 people, highlighting its significant workforce in the construction materials sector[158] - Approximately 2,789 frontline leaders completed leadership training, with 1,300 leaders participating in development programs[178] - The company is addressing labor shortages and wage inflation by investing in technology and digital solutions, creating significant value[156] Customer Focus and Solutions - The company focuses on delivering integrated end-to-end solutions, enhancing customer relationships and increasing customer spend[163] - The focus on customer connectivity aims to create preferred solutions that exceed customer expectations[100] - The company aims to address evolving customer demands for holistic solutions that reduce costs and complexity while improving environmental performance[142] - CRH's solutions strategy leverages scale and deep customer understanding to provide value-added materials and services[177] Regulatory and Environmental Challenges - Climate change and changing customer preferences are driving demand for critical infrastructure and sustainable materials, influencing CRH's strategic direction[153] - Regulatory changes aimed at decarbonizing the industry are stimulating demand for circularity and sustainable materials[156] - The construction sector accounts for approximately 40% of global carbon emissions, primarily from energy used in buildings and material manufacturing[192] - The company recognizes the need to reduce carbon emissions and manage exposure to climate change impacts while providing sustainable solutions[193]

Report Publication - The 2022 Annual Report has been published on 10th March 2023 and is available on the Company's website[2] - The report has been filed with the US Securities and Exchange Commission, allowing US shareholders to request a hard copy free of charge[3] - The 2022 Annual Report is expected to be posted to shareholders who requested a hard copy on 29 March 2023[7]

[Report Information](index=1&type=section&id=Report%20Information) [Filing Details](index=1&type=section&id=Filing%20Details) This document is a Form 6-K report submitted by CRH public limited company, disclosing the company's full-year results for fiscal year 2022 and containing inside information - This report is a Form 6-K filing by CRH public limited company, disclosing full-year results for fiscal year 2022[25](index=25&type=chunk)[30](index=30&type=chunk)[54](index=54&type=chunk) - The document explicitly states it contains inside information[25](index=25&type=chunk)[264](index=264&type=chunk) [Key Highlights](index=2&type=section&id=Key%20Highlights) [2022 Performance & Strategic Initiatives](index=2&type=section&id=2022%20Performance%20%26%20Strategic%20Initiatives) The company achieved strong performance in 2022 with double-digit growth in sales and EBITDA, and a 14% increase in EPS, while adopting efficient capital allocation, boosting share buybacks, and strengthening its portfolio through strategic acquisitions, alongside updated decarbonization targets and a planned US primary listing - **Strong 2022 performance** with growth in sales, EBITDA, margins, and EPS, despite significant cost inflation[30](index=30&type=chunk)[33](index=33&type=chunk)[55](index=55&type=chunk) - Adopted an efficient and disciplined capital allocation approach, with a **5% increase in annual dividend** and a plan to significantly increase share buybacks to **$3.0 billion** over the next 12 months[26](index=26&type=chunk)[75](index=75&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - Invested **$3.3 billion** in solutions-focused acquisitions, with a strong pipeline of future opportunities[26](index=26&type=chunk)[77](index=77&type=chunk)[103](index=103&type=chunk) - Maintained a **robust and flexible balance sheet**, providing significant optionality for future value creation[26](index=26&type=chunk)[76](index=76&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - Elevated sustainability ambitions, updating the **1.5°C decarbonization target**[26](index=26&type=chunk)[59](index=59&type=chunk) - Introduced a new organizational structure aligned with the integrated solutions strategy[26](index=26&type=chunk)[58](index=58&type=chunk) - Proposed a transition to a **US primary listing in 2023**[26](index=26&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) 2022 Key Financial Summary | Metric | 2022 Data | Change Rate | |:-----------|:-----------|:-------| | Sales | $32.7 billion | +12% | | EBITDA | $5.6 billion | +13% | | EBITDA Margin | 17.2% | +10bps | | EPS | $3.50 | +14% | [CEO Statement](index=2&type=section&id=CEO%20Statement) [CEO's Message](index=2&type=section&id=CEO's%20Message) CEO Albert Manifold emphasized that 2022's strong performance resulted from employee commitment, business resilience, and the integrated solutions strategy, leading to enhanced profit, margins, and returns despite cost pressures, and building the strongest-ever balance sheet for future growth and value creation - **2022 performance** reflects outstanding employee commitment, underlying strength and resilience of the business, and continued execution of the integrated solutions strategy[27](index=27&type=chunk) - Achieved further improvements in profit, margins, and returns despite significant cost pressures throughout the year[27](index=27&type=chunk) - Strong cash generation and continued focus on disciplined capital allocation resulted in the **strongest balance sheet in the company's history**, providing significant opportunities for future growth and value creation[27](index=27&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) [Group Financial Highlights](index=2&type=section&id=Group%20Financial%20Highlights) CRH achieved significant financial growth in 2022, with double-digit increases in group sales and EBITDA, and substantial improvements in profit after tax from continuing operations and EPS, demonstrating effective management in addressing cost inflation 2022 Group Financial Performance (Continuing Operations) | Metric | 2022 ($m) | 2021 ($m) | Change Rate | |:---------------------|:------------|:------------|:-------| | Group Sales | 32,700 | 29,200 | +12% | | Group EBITDA | 5,600 | 5,000 | +13% | | Profit After Tax from Continuing Operations | 2,700 | 2,400 | +10% | | EPS from Continuing Operations | 3.50 | 3.06 | +14% | | Total EPS | 5.07 | 3.29 | +54% | - Group sales increased by **12%** year-on-year, and EBITDA increased by **13%**, primarily due to good commercial management and operational efficiency, offsetting significant cost inflation[33](index=33&type=chunk) - Profit after tax from continuing operations increased by **10%** compared to 2021, driven by strong trading performance[29](index=29&type=chunk) [Segmental Performance Summary](index=2&type=section&id=Segmental%20Performance%20Summary) All business segments performed strongly in 2022, with Americas Materials and Building Products achieving significant sales and EBITDA growth, while Europe Materials also saw sales and EBITDA increases driven by pricing, despite adverse currency impacts - Americas Materials performed strongly, with **total sales up 15%**, **like-for-like sales up 12%**, and **EBITDA up 6%** (like-for-like up 5%), primarily due to robust price increases across all product lines[56](index=56&type=chunk) - Building Products maintained good activity levels, with **total sales up 26%**, **like-for-like sales up 11%**, and **total EBITDA up 52%** (like-for-like up 18%), driven by strong demand in key utility infrastructure and outdoor living solutions[56](index=56&type=chunk) - Europe Materials reported **like-for-like sales growth of 11%** and **like-for-like EBITDA growth of 8%**, reflecting sustained strong pricing progress offsetting lower activity levels, but total sales were flat compared to 2021, and EBITDA decreased by **4%** due to adverse currency impacts[56](index=56&type=chunk) [Strategic Initiatives & Outlook](index=3&type=section&id=Strategic%20Initiatives%20%26%20Outlook) [Integrated Solutions Strategy & Organizational Structure](index=3&type=section&id=Integrated%20Solutions%20Strategy%20%26%20Organizational%20Structure) The company continues to advance its integrated solutions strategy by combining value-added materials, products, and services to meet increasingly complex customer construction needs, transitioning to a new organizational structure effective January 1, 2023, with two divisions and four reporting segments - **2022 performance** reflects the continued execution of the company's integrated solutions strategy, which provides tailored solutions by combining value-added materials, products, and services for customers[58](index=58&type=chunk) - To accelerate strategic development and adapt to industry changes, the company transitioned to a new organizational structure effective **January 1, 2023**, comprising two divisions (CRH Americas and CRH Europe) and four reporting segments (Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions)[38](index=38&type=chunk)[58](index=58&type=chunk)[169](index=169&type=chunk) [Sustainability & Decarbonization](index=3&type=section&id=Sustainability%20%26%20Decarbonization) The company is committed to continuously improving its sustainability performance and decarbonizing its operations, announcing an industry-leading absolute carbon emissions reduction target by 2030, validated by SBTi, and launching CRH Ventures with a $250 million fund for construction and climate technology investments - The company announced a target to achieve a **30% absolute reduction in carbon emissions by 2030** (from a 2021 base year), validated by the Science Based Targets initiative (SBTi), consistent with its 2050 net-zero target[59](index=59&type=chunk) - Launched CRH Ventures, a venture capital arm with a **$250 million** venture and innovation fund, to partner with construction and climate technology companies, supporting the development of new technologies and innovative solutions for customer needs and a sustainable built environment[36](index=36&type=chunk) [Trading Outlook](index=3&type=section&id=Trading%20Outlook) Despite macroeconomic uncertainties and persistent cost inflation, the company anticipates resilient demand and price increases in 2023, with North American operations benefiting from strong pricing and infrastructure demand, while Europe expects positive pricing momentum to offset volume declines - **Resilient demand and price increases** are anticipated for 2023, despite macroeconomic uncertainties and persistent cost inflation[37](index=37&type=chunk) - North American operations will benefit from **strong pricing** and significant increases in federal and state-level infrastructure funding[37](index=37&type=chunk) - The non-residential sector is supported by clean energy government funding and key manufacturing reshoring, while the residential new-build market will experience short-term weakness due to rising interest rates[37](index=37&type=chunk) - Europe anticipates positive pricing momentum to offset lower volumes, with Central and Eastern European construction activity supported by EU infrastructure funds, and Western European operations underpinned by resilient repair, maintenance, and improvement (RMI) activity and stable infrastructure demand[37](index=37&type=chunk) [Segmental Performance](index=3&type=section&id=Segmental%20Performance) [Americas Materials](index=3&type=section&id=Americas%20Materials) Americas Materials delivered strong performance in 2022, with growth in both sales and EBITDA, primarily driven by robust price increases across all business lines, despite adverse weather and rising input costs, further consolidating its market position through acquisitions Americas Materials 2022 Financial Performance | Metric | 2021 ($m) | 2022 ($m) | Change Rate | |:-----------------|:------------|:------------|:-------| | Sales Revenue | 12,407 | 14,324 | +15% | | EBITDA | 2,588 | 2,748 | +6% | | Operating Profit | 1,788 | 1,909 | +7% | | EBITDA/Sales | 20.9% | 19.2% | -1.7pp | | Operating Profit/Sales | 14.4% | 13.3% | -1.1pp | - Sales increased by **15%**, EBITDA by **6%**, and operating profit by **7%**, primarily driven by robust price increases across all business lines, partially offset by lower volumes due to adverse weather and rising input costs[39](index=39&type=chunk)[62](index=62&type=chunk) - Completed **10 solutions-focused acquisitions** in 2022, totaling **$500 million** in expenditure, with the largest being Hinkle Contracting Company in Kentucky[63](index=63&type=chunk) [Product & Regional Performance](index=4&type=section&id=Product%20%26%20Regional%20Performance) Americas Materials achieved price increases across aggregates, asphalt, ready-mixed concrete, and cement product lines, offsetting some volume declines and cost inflation, with varied regional market performance due to weather and other factors - Aggregates volumes decreased by **1%** but prices increased by **10%**; asphalt volumes increased by **3%** with prices up **20%**; ready-mixed concrete volumes decreased by **6%** but prices increased by **14%**; cement volumes slightly decreased but prices increased by **12%**[41](index=41&type=chunk)[45](index=45&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - Southern region sales increased by **26%**, with volumes ahead of the prior year, but operating profit slightly decreased as strong pricing was offset by increased energy and asphalt costs[67](index=67&type=chunk) - Northeast region sales increased by **10%**, with operating profit up, primarily due to price increases offsetting lower volumes and increased input costs[66](index=66&type=chunk) - Great Lakes sales increased by **20%**, and Western region sales increased by **10%**, primarily through commercial management and pricing strategies to counter cost inflation[43](index=43&type=chunk)[44](index=44&type=chunk) [Building Products](index=4&type=section&id=Building%20Products) Building Products achieved significant growth in 2022, with substantial increases in sales and operating profit, driven by strong demand in key utility infrastructure and outdoor living solutions, as well as contributions from successful acquisitions, further enhancing profitability through effective cost control and production efficiency improvements Building Products 2022 Financial Performance | Metric | 2021 ($m) | 2022 ($m) | Change Rate | |:-----------------|:------------|:------------|:-------| | Sales Revenue | 6,218 | 7,823 | +26% | | EBITDA | 992 | 1,510 | +52% | | Operating Profit | 729 | 1,161 | +59% | | EBITDA/Sales | 16.0% | 19.3% | +3.3pp | | Operating Profit/Sales | 11.7% | 14.8% | +3.1pp | - Sales increased by **26%** (like-for-like up 11%), EBITDA by **52%** (like-for-like up 18%), and operating profit by **59%** (like-for-like up 20%), primarily due to strong demand in key utility infrastructure and outdoor living solutions, coupled with sustained cost control and production efficiency[46](index=46&type=chunk) - Completed **10 acquisitions** in 2022, primarily in the US, totaling approximately **$2.7 billion** in expenditure, with the largest being Barrette Outdoor Living, a leading North American provider of fencing and railing solutions[69](index=69&type=chunk) [Product Performance](index=5&type=section&id=Product%20Performance) Building Products' sub-categories performed well, with sales growth in architectural products across North America and Europe, strong demand for infrastructure products, and leading sales in building envelope solutions through aggressive pricing, while the divested Building Envelope business also grew sales and EBITDA prior to its divestment - North American architectural products sales grew strongly, with robust performance in Europe despite currency headwinds; integration of Barrette Outdoor Living is progressing well[70](index=70&type=chunk) - Infrastructure products sales grew strongly, particularly in North America, benefiting from strong demand in communications, energy, water, and transportation sectors, and contributions from recent acquisitions[71](index=71&type=chunk) - Building envelope solutions achieved leading sales across all regions through aggressive pricing actions, with operating profit significantly ahead of the prior year[91](index=91&type=chunk) - The Building Envelope business (divested) reported sales and EBITDA ahead of 2021 prior to its divestment in April 2022, benefiting from sales growth and margin expansion from operational efficiencies[92](index=92&type=chunk) [Europe Materials](index=5&type=section&id=Europe%20Materials) Europe Materials successfully offset significant energy and other input cost inflation, as well as the impact of the conflict in Ukraine, through commercial management and cost-saving initiatives in 2022, resulting in like-for-like sales and EBITDA growth, despite adverse currency translation effects on total sales and EBITDA Europe Materials 2022 Financial Performance | Metric | 2021 ($m) | 2022 ($m) | Change Rate | |:-----------------|:------------|:------------|:-------| | Sales Revenue | 10,581 | 10,576 | - | | EBITDA | 1,410 | 1,357 | -4% | | Operating Profit | 814 | 824 | +1% | | EBITDA/Sales | 13.3% | 12.8% | -0.5pp | | Operating Profit/Sales | 7.7% | 7.8% | +0.1pp | - Like-for-like sales grew by **11%**, like-for-like EBITDA by **8%**, and operating profit like-for-like by **12%**, primarily due to sustained strong pricing progress and cost-saving initiatives[93](index=93&type=chunk) - Adverse currency translation effects resulted in total sales being flat compared to 2021, EBITDA decreasing by **4%**, and operating profit increasing by **1%**[93](index=93&type=chunk) [Regional Performance](index=5&type=section&id=Regional%20Performance) Europe Materials' performance varied across regions, with strong sales and operating profit in the UK and Ireland, flat sales but growing operating profit in Northern Europe, and slight sales decline but like-for-like operating profit growth in Western Europe, while Eastern Europe's sales were ahead despite the Ukraine conflict impacting total operating profit, and Asian regions saw lower sales and operating profit due to construction restrictions and cost inflation - UK and Ireland sales and operating profit significantly exceeded 2021, driven by strong pricing and ongoing performance optimization[49](index=49&type=chunk) - Northern Europe (Finland, Germany, and Switzerland) sales were flat compared to 2021, primarily due to price increases offsetting volume declines, with like-for-like operating profit ahead[72](index=72&type=chunk) - Western Europe (France, Benelux, Denmark, and Spain) sales were slightly below 2021, but like-for-like operating profit was ahead, benefiting from higher pricing and sustained cost savings[94](index=94&type=chunk) - Eastern Europe (Poland, Ukraine, Romania, Hungary, Slovakia, Serbia, and Croatia) sales were ahead, but the Ukraine conflict impacted activity levels, leading to total operating profit being below the prior year[73](index=73&type=chunk) - Philippines sales lagged 2021, with operating profit significantly impacted by high energy and transportation costs; performance of Chinese associates was affected by COVID-19 restrictions[95](index=95&type=chunk)[97](index=97&type=chunk) [Other Financial Items](index=6&type=section&id=Other%20Financial%20Items) [Depreciation, Tax & Finance Costs](index=6&type=section&id=Depreciation%2C%20Tax%20%26%20Finance%20Costs) Depreciation and amortization expenses in 2022 were flat compared to the prior year, profit before tax increased, but the effective tax rate rose due to the tax impact of divested businesses, while net finance costs decreased, primarily benefiting from higher interest income and lower debt levels - Total depreciation and amortization expenses were **$1.7 billion**, flat compared to the prior year (2021: **$1.7 billion**)[52](index=52&type=chunk) - Profit before tax was **$3.5 billion** (2021: **$3.1 billion**), with related tax expenses of **$785 million** (2021: **$661 million**), resulting in an effective tax rate of **22.6%** (2021: **21.3%**), higher than the prior year, primarily due to the tax impact of divested businesses[53](index=53&type=chunk) - Net finance costs were **$376 million**, lower than **$399 million** in 2021, primarily due to increased interest income and lower debt levels offsetting higher interest expenses from rising interest rates[74](index=74&type=chunk) [Disposals & Equity Accounted Investments](index=6&type=section&id=Disposals%20%26%20Equity%20Accounted%20Investments) Disposals from continuing operations resulted in a total loss of $49 million, while the divestment of the Building Envelope business generated a profit after tax of $1.1 billion, and profit from equity-accounted investments was zero, mainly due to the impact of COVID-19 restrictions on Chinese associates' performance - Disposals and asset sales from continuing operations resulted in a total loss of **$49 million** (2021: **$116 million** profit)[96](index=96&type=chunk) - Profit after tax from the divestment of the Building Envelope business was **$1.1 billion**, recognized in profit after tax from discontinued operations[96](index=96&type=chunk) - Profit from equity-accounted investments was **zero** (2021: **$55 million**), primarily due to the impact of COVID-19 restrictions on Chinese associates' performance[97](index=97&type=chunk) [Shareholder Returns](index=6&type=section&id=Shareholder%20Returns) [Dividend Policy & Declaration](index=6&type=section&id=Dividend%20Policy%20%26%20Declaration) The Board recommends a final dividend of $1.03 per share, bringing the total annual dividend to $1.27 per share, a 5% increase from 2021, consistent with the company's progressive dividend policy, with payments to be made entirely in cash - The Board recommends a final dividend of **$1.03 per share**, bringing the total annual dividend to **$1.27 per share** (2021: **$1.21 per share**), an increase of **5.0%** from 2021, consistent with the company's progressive dividend policy[98](index=98&type=chunk) - Dividend cover was **2.8x** based on EPS from continuing operations[98](index=98&type=chunk) - The final dividend will be paid on **May 4, 2023**, to shareholders registered at the close of business on **March 17, 2023**, with an ex-dividend date of **March 16, 2023**, and will be paid entirely in cash[98](index=98&type=chunk) [Share Buyback Programme](index=6&type=section&id=Share%20Buyback%20Programme) The company continued its share buyback program in 2022, repurchasing 29.8 million ordinary shares for a total consideration of $1.2 billion, and plans to significantly increase its share buyback program to up to $3.0 billion of CRH shares over the next 12 months, given its strong financial position and cash generation - The company continued its share buyback program in 2022, repurchasing **29.8 million ordinary shares** (2021: **17.8 million shares**) for a total consideration of **$1.2 billion** (2021: **$0.9 billion**)[99](index=99&type=chunk) - The company plans to significantly increase its share buyback program to up to **$3.0 billion** of CRH shares over the next 12 months, to return value to shareholders while maintaining financial flexibility for investment growth[75](index=75&type=chunk)[100](index=100&type=chunk) [Balance Sheet and Liquidity](index=6&type=section&id=Balance%20Sheet%20and%20Liquidity) [Financial Position & Debt Metrics](index=6&type=section&id=Financial%20Position%20%26%20Debt%20Metrics) At the end of 2022, the company held $5.9 billion in cash and cash equivalents, along with $3.7 billion in undrawn committed credit facilities, ensuring debt repayment capacity for the next five years, with year-end net debt at $5.1 billion and a net debt/EBITDA ratio of 0.9x, indicating a strong financial position and investment-grade credit ratings - At year-end 2022, the Group held **$5.9 billion** in cash and cash equivalents, and **$3.7 billion** in undrawn committed credit facilities, available until 2026[76](index=76&type=chunk) - Year-end net debt was **$5.1 billion** (2021: **$6.3 billion**), with a net debt/EBITDA ratio of **0.9x** (2021: **1.3x**), reflecting healthy operating cash inflows and proceeds from divestments[101](index=101&type=chunk)[229](index=229&type=chunk) - The Group maintains a **robust balance sheet** and strong investment-grade credit ratings, achieving BBB+ or equivalent from all three rating agencies[102](index=102&type=chunk) - The weighted average remaining debt maturity was **12.2 years**, with sufficient cash balances to meet all debt obligations maturing over the next five years[76](index=76&type=chunk) [Investments and Divestments](index=7&type=section&id=Investments%20and%20Divestments) [Acquisitions](index=7&type=section&id=Acquisitions) In 2022, the company invested $3.3 billion in 29 acquisitions, the largest being the $1.9 billion acquisition of Barrette Outdoor Living, a leading North American provider of fencing and railing solutions, to enhance its outdoor living solutions portfolio, with Americas Materials and Europe Materials segments also completing several solutions-focused acquisitions - In 2022, the Group invested **$3.3 billion** in **29 acquisitions** (including deferred and contingent consideration for prior acquisitions)[77](index=77&type=chunk)[103](index=103&type=chunk) - The largest acquisition was the Building Products segment's **$1.9 billion** purchase of Barrette Outdoor Living, a leading North American provider of fencing and railing solutions, to enhance its sustainable outdoor living solutions portfolio[77](index=77&type=chunk) - Americas Materials segment completed **10 solutions-focused acquisitions** totaling **$500 million** in expenditure; Europe Materials segment completed **9 bolt-on acquisitions** totaling **$100 million** in expenditure[77](index=77&type=chunk) [Divestments](index=7&type=section&id=Divestments) In 2022, the company completed nine transactions, generating total proceeds of $3.9 billion from business and asset disposals, primarily from the divestment of the Building Envelope business, which yielded $3.5 billion in cash proceeds - In 2022, the Group completed **9 transactions**, generating total proceeds of **$3.9 billion** from business and asset disposals, primarily related to the divestment of the Building Envelope business[103](index=103&type=chunk) - The largest divestment was the Building Envelope business, which generated **$3.5 billion** in cash proceeds (enterprise value of **$3.8 billion**, including **$300 million** of transferred lease liabilities)[104](index=104&type=chunk) - Additionally, the Group completed **8 other divestments**, generating total proceeds of **$200 million**, and received **$100 million** from the disposal of remaining property, plant, and equipment and other non-current assets[104](index=104&type=chunk) [Listing Considerations](index=7&type=section&id=Listing%20Considerations) [Rationale for US Primary Listing](index=7&type=section&id=Rationale%20for%20US%20Primary%20Listing) North American operations currently account for approximately 75% of the Group's EBITDA and are expected to be a key driver of CRH's future growth, with the company believing a US primary listing will provide more commercial, operational, and acquisition opportunities, further accelerating its integrated solutions strategy and delivering higher profitability, returns, and cash for shareholders, without affecting CRH plc's headquarters, place of incorporation, or tax residency in Ireland - North American operations currently account for approximately **75% of Group EBITDA** and are expected to be a key driver of CRH's future growth, with potential for further increased exposure in this market due to significant increases in infrastructure funding, manufacturing reshoring, and undersupply in the residential construction market[79](index=79&type=chunk) - The company believes a US primary listing will provide more commercial, operational, and acquisition opportunities, further accelerating its integrated solutions strategy and delivering **higher profitability, returns, and cash** for shareholders[80](index=80&type=chunk) - This change in listing structure will **not affect CRH plc's headquarters, place of incorporation, or tax residency in Ireland**[81](index=81&type=chunk) - The company will present the rationale for the recommended US primary listing to shareholders in the coming weeks and will provide further updates in its trading statement on **April 26, 2023**[106](index=106&type=chunk)[107](index=107&type=chunk) [Primary Financial Statements](index=8&type=section&id=Primary%20Financial%20Statements) [Consolidated Income Statement](index=8&type=section&id=Consolidated%20Income%20Statement) The 2022 consolidated income statement shows growth in both group revenue and profit, with significant improvements in profit after tax from continuing operations and EPS, though losses from disposed businesses had some impact on total profit Consolidated Income Statement Summary (2022 vs 2021) | Metric | 2022 ($m) | 2021 ($m) | |:-----------------------------------|:------------|:------------| | Revenue | 32,723 | 29,206 | | Cost of Sales | (21,844) | (19,350) | | Gross Profit | 10,879 | 9,856 | | Operating Costs | (6,985) | (6,525) | | Group Operating Profit | 3,894 | 3,331 | | Profit/(Loss) on Disposals | (49) | 116 | | Profit Before Tax from Continuing Operations | 3,469 | 3,103 | | Income Tax Expense | (785) | (661) | | Profit After Tax from Continuing Operations | 2,684 | 2,442 | | Profit After Tax from Discontinued Operations | 1,190 | 179 | | Group Profit for the Year | 3,874 | 2,621 | | Basic EPS from Continuing Operations | $3.50 | $3.06 | | Diluted EPS from Continuing Operations | $3.48 | $3.03 | | Basic EPS | $5.07 | $3.29 | | Diluted EPS | $5.03 | $3.26 | [Consolidated Statement of Comprehensive Income](index=8&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The consolidated statement of comprehensive income shows a group profit for the year of $3.874 billion in 2022, with other comprehensive income of negative $373 million, resulting in a total comprehensive income for the year of $3.501 billion Consolidated Statement of Comprehensive Income Summary (2022 vs 2021) | Metric | 2022 ($m) | 2021 ($m) | |:-----------------------------------|:------------|:------------| | Group Profit for the Year | 3,874 | 2,621 | | Other Comprehensive Income | (373) | (84) | | - Items that may be reclassified to profit or loss in subsequent periods | (589) | (312) | | - Items that will not be reclassified to profit or loss in subsequent periods | 216 | 228 | | Total Comprehensive Income for the Year | 3,501 | 2,537 | [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2022, total group assets slightly increased, non-current assets remained stable, and current assets rose, while total liabilities decreased, primarily due to a reduction in non-current liabilities, with shareholder equity growing significantly, reflecting the company's robust financial position Consolidated Balance Sheet Summary (2022 vs 2021) | Metric | 2022 ($m) | 2021 ($m) | |:---------------------|:------------|:------------| | **Assets** | | | | Total Non-Current Assets | 30,387 | 30,626 | | Total Current Assets | 14,801 | 14,044 | | **Total Assets** | **45,188** | **44,670** | | **Liabilities** | | | | Total Non-Current Liabilities | 13,962 | 16,175 | | Total Current Liabilities | 8,889 | 7,581 | | **Total Liabilities** | **22,851** | **23,756** | | **Equity** | | | | Equity Attributable to Company Shareholders | 21,691 | 20,233 | | Non-Controlling Interests | 646 | 681 | | **Total Equity** | **22,337** | **20,914** | [Consolidated Statement of Changes in Equity](index=10&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The consolidated statement of changes in equity details various changes in shareholder equity in 2022, including group profit, other comprehensive income, share buybacks, dividend payments, and other adjustments, ultimately leading to an increase in total equity from $20.914 billion at year-end 2021 to $22.337 billion at year-end 2022 - Total equity was **$20.914 billion** on January 1, 2022, and increased to **$22.337 billion** by December 31, 2022[135](index=135&type=chunk) - Changes in equity primarily include group profit for the year of **$3.874 billion**, other comprehensive income of negative **$373 million**, as well as share buybacks (**$1.153 billion**) and dividend payments (**$944 million**)[135](index=135&type=chunk) [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The consolidated statement of cash flows shows net cash inflow from operating activities of $3.954 billion, net cash outflow from investing activities of $884 million, and net cash outflow from financing activities of $2.686 billion in 2022, ultimately leading to a $384 million increase in cash and cash equivalents, despite a slight decrease in operating cash inflow Consolidated Statement of Cash Flows Summary (2022 vs 2021) | Metric | 2022 ($m) | 2021 ($m) | |:---------------------------|:------------|:------------| | Net Cash Inflow from Operating Activities | 3,954 | 4,210 | | Net Cash Outflow from Investing Activities | (884) | (2,546) | | Net Cash Outflow from Financing Activities | (2,686) | (3,305) | | Increase/(Decrease) in Cash and Cash Equivalents | 384 | (1,641) | | Cash and Cash Equivalents at Year-End | 5,936 | 5,783 | - Net cash inflow from operating activities was **$3.954 billion**, and excluding increased tax outflows related to the Building Envelope divestment, operating cash inflow was higher than in 2021[101](index=101&type=chunk)[112](index=112&type=chunk) - Net cash outflow from investing activities significantly decreased, primarily due to proceeds from business disposals (**$3.827 billion**), offsetting expenditures for subsidiary acquisitions (**$3.253 billion**) and property, plant, and equipment purchases (**$1.523 billion**)[89](index=89&type=chunk)[112](index=112&type=chunk) - Net cash outflow from financing activities primarily included share buybacks (**$1.178 billion**) and dividend payments (**$917 million**)[89](index=89&type=chunk) [Selected Explanatory Notes to the Consolidated Financial Statements](index=12&type=section&id=Selected%20Explanatory%20Notes%20to%20the%20Consolidated%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=12&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial information in this report is prepared in accordance with International Financial Reporting Standards (IFRS), with no material impact from 2022 standard revisions, and a voluntary change in operating cash flow presentation from January 1, 2022, had no impact on net cash inflow - Financial information is prepared in accordance with **International Financial Reporting Standards (IFRS)**[114](index=114&type=chunk) - Revisions to standards effective **January 1, 2022** (including amendments to IFRS 3, IAS 16, IAS 37, and annual improvements), had no material impact on the Group's performance[115](index=115&type=chunk) - The company voluntarily changed its accounting policy for presenting operating cash flow in the consolidated statement of cash flows from **January 1, 2022**, using "Group profit for the year" as the starting point, but this had no impact on net cash inflow or any other financial statement items[116](index=116&type=chunk) [Translation of Foreign Currencies](index=13&type=section&id=Translation%20of%20Foreign%20Currencies) The Group presents financial information in US Dollars, with results and cash flows of non-USD functional currency operations translated at annual average exchange rates, and the balance sheet translated at year-end exchange rates, with the report providing 2022 and 2021 average and year-end exchange rates for major currencies against the US Dollar - Financial information is presented in **US Dollars**, with results and cash flows of non-USD functional currency operations translated at annual average exchange rates, and the balance sheet translated at year-end exchange rates[117](index=117&type=chunk) Major Foreign Currency Exchange Rates vs USD (2022 vs 2021) | Currency | 2022 Average Rate | 2021 Average Rate | 2022 Year-End Rate | 2021 Year-End Rate | |:-----------------|:---------------|:---------------|:-------------|:-------------| | Brazilian Real | 5.1648 | 5.3968 | 5.2794 | 5.5716 | | Canadian Dollar | 1.3017 | 1.2538 | 1.3535 | 1.2716 | | Euro | 0.9518 | 0.8460 | 0.9368 | 0.8829 | | Pound Sterling | 0.8120 | 0.7270 | 0.8310 | 0.7417 | | Swiss Franc | 0.9551 | 0.9145 | 0.9230 | 0.9119 | | Ukrainian Hryvnia | 32.6730 | 27.2588 | 36.9172 | 27.2850 | [Key Components of 2022 Performance & Seasonality](index=13&type=section&id=Key%20Components%20of%202022%20Performance%20%26%20Seasonality) The growth in 2022 performance was primarily driven by a combination of organic growth, acquisition contributions, and exchange rate impacts, with the construction industry exhibiting seasonal characteristics and weather dependency, resulting in a lower proportion of full-year sales and EBITDA recognized in the first half 2022 Performance Change Analysis (Continuing Operations) | Metric | 2021 ($m) | FX Impact ($m) | 2021/2022 Acquisition Increments ($m) | 2021/2022 Divestment Decrements ($m) | Organic Growth ($m) | 2022 ($m) | Total Change Rate | Organic Change Rate | |:-----------------|:------------|:--------------|:-----------------------|:-----------------------|:--------------|:------------|:---------|:-----------| | Sales Revenue | 29,206 | (1,359) | 1,739 | (108) | 3,245 | 32,723 | 12% | 12% | | EBITDA | 4,990 | (168) | 402 | (17) | 408 | 5,615 | 13% | 8% | | Operating Profit | 3,331 | (82) | 275 | (13) | 383 | 3,894 | 17% | 12% | | Profit Before Tax | 3,103 | (68) | 220 | (143) | 357 | 3,469 | 12% | 12% | - The construction industry is cyclical and seasonal, affected by weather, with **46%** of full-year sales (2021: **45%**) and **39%** of full-year EBITDA (2021: **36%**) recognized in the first half[119](index=119&type=chunk) [Revenue Disaggregation](index=14&type=section&id=Revenue%20Disaggregation) Group revenue is disaggregated by major geographical markets and by major activities and products, with the United States being the largest revenue source, followed by the UK and other European regions, and construction contract activities, aggregates/asphalt/ready-mixed products, and cement/lime products serving as primary revenue sources Revenue by Major Geographical Market (2022 vs 2021) | Geographical Market | 2022 ($m) | 2021 ($m) | |:-----------------|:------------|:------------| | United States | 19,088 | 15,618 | | United Kingdom | 4,241 | 4,199 | | Rest of Europe | 6,293 | 6,316 | | Republic of Ireland | 801 | 706 | | Rest of World | 2,300 | 2,367 | | **Total Continuing Operations** | **32,723** | **29,206** | | Total Discontinued Operations | 645 | 1,775 | Revenue by Major Activity and Product (2022 vs 2021) | Activity and Product | 2022 ($m) | 2021 ($m) | |:-------------------|:------------|:------------| | Construction Contract Activities | 7,980 | 6,819 | | Building Products | 5,717 | 5,054 | | Infrastructure Products | 2,702 | 1,788 | | Building Envelope Solutions | 795 | 731 | | Cement, Lime & Cement Products | 5,035 | 4,946 | | Aggregates, Asphalt & Ready-Mixed Products | 10,494 | 9,868 | | **Total Continuing Operations** | **32,723** | **29,206** | | Total Discontinued Operations | 645 | 1,775 | - As of December 31, 2022, unrecognised long-term construction contract revenue was **$3.742 billion** (2021: **$3.177 billion**), with the majority expected to be recognized within 12 months[148](index=148&type=chunk) [Segment Information](index=15&type=section&id=Segment%20Information) The Group reorganized into CRH Americas and CRH Europe divisions on January 1, 2023, and increased its reporting segments, with Americas Materials, Building Products, and Europe Materials serving as primary reporting segments in 2022, with detailed disclosures of their revenue, EBITDA, depreciation, amortization, and operating profit - Effective **January 1, 2023**, the Group reorganized into two divisions, CRH Americas and CRH Europe, increasing reporting segments from three to four: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions[169](index=169&type=chunk) - Changes in segmental reporting have no financial impact on the Group's consolidated financial statements[170](index=170&type=chunk) Revenue, EBITDA, Depreciation, Amortization & Operating Profit by Segment (2022 vs 2021) | Metric | Segment | 2022 ($m) | Share (%) | 2021 ($m) | Share (%) | |:-------------------------|:-----------------|:------------|:---------|:------------|:---------| | **Revenue** | Americas Materials | 14,324 | 43.8 | 12,407 | 42.5 | | | Building Products | 7,823 | 23.9 | 6,218 | 21.3 | | | Europe Materials | 10,576 | 32.3 | 10,581 | 36.2 | | **EBITDA** | Americas Materials | 2,748 | 48.9 | 2,588 | 51.9 | | | Building Products | 1,510 | 26.9 | 992 | 19.9 | | | Europe Materials | 1,357 | 24.2 | 1,410 | 28.2 | | **Depreciation, Amortization & Impairment** | Americas Materials | 839 | 48.7 | 800 | 48.2 | | | Building Products | 349 | 20.3 | 263 | 15.9 | | | Europe Materials | 533 | 31.0 | 596 | 35.9 | | **Group Operating Profit** | Americas Materials | 1,909 | 49.0 | 1,788 | 53.7 | | | Building Products | 1,161 | 29.8 | 729 | 21.9 | | | Europe Materials | 824 | 21.2 | 814 | 24.4 | Segment Assets & Liabilities (2022 vs 2021) | Metric | Segment | 2022 ($m) | Share (%) | 2021 ($m) | Share (%) | |:-----------------|:-----------------|:------------|:---------|:------------|:---------| | **Total Assets** | Americas Materials | 17,609 | 45.8 | 17,064 | 45.0 | | | Building Products | 9,165 | 23.9 | 8,504 | 22.4 | | | Europe Materials | 11,622 | 30.3 | 12,367 | 32.6 | | **Total Liabilities** | Americas Materials | 3,227 | 33.9 | 3,292 | 33.0 | | | Building Products | 2,045 | 21.5 | 2,579 | 25.9 | | | Europe Materials | 4,245 | 44.6 | 4,100 | 41.1 | [Earnings per Ordinary Share](index=17&type=section&id=Earnings%20per%20Ordinary%20Share) In 2022, the company's basic and diluted EPS from continuing operations both increased, while total EPS significantly rose due to the profit contribution from discontinued operations Earnings per Ordinary Share (2022 vs 2021) | Metric | 2022 ($) | 2021 ($) | |:-----------------------------------|:-----------|:-----------| | Basic EPS from Continuing Operations | 3.50 | 3.06 | | Diluted EPS from Continuing Operations | 3.48 | 3.03 | | Basic EPS | 5.07 | 3.29 | | Diluted EPS | 5.03 | 3.26 | - Profit attributable to ordinary shareholders (numerator for basic/diluted EPS) was **$3.847 billion** (2021: **$2.565 billion**)[171](index=171&type=chunk) - Profit after tax from discontinued operations attributable to company shareholders was **$1.190 billion** (2021: **$179 million**)[171](index=171&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board recommends a final dividend of $1.03 per share, bringing the total annual dividend to $1.27 per share, a 5% increase from the prior year, with payments to be made in Euros, Pound Sterling, and US Dollars according to shareholders' existing instructions Dividend Information (2022 vs 2021) | Metric | 2022 ($) | 2021 ($) | |:---------------------|:-----------|:-----------| | Net Dividend Paid Per Share | 1.22 | 1.16 | | Net Dividend Declared Per Share | 1.27 | 1.21 | | Dividend Cover from Continuing Operations | 2.8x | 2.5x | - The Board recommends a final dividend of **$1.03 per share**, bringing the total annual dividend to **$1.27 per share**, a **5% increase** from the prior year[174](index=174&type=chunk) - The final dividend will be paid in Euros, Pound Sterling, and US Dollars according to shareholders' existing payment instructions, with exchange rates expected to be determined on **April 20, 2023**[154](index=154&type=chunk)[175](index=175&type=chunk) [Assets Held for Sale and Discontinued Operations](index=18&type=section&id=Assets%20Held%20for%20Sale%20and%20Discontinued%20Operations) In April 2022, the Group completed the divestment of its Building Envelope business, which was classified as a discontinued operation, generating a profit of $1.471 billion and proceeds from disposal of $3.525 billion, with cash flow from discontinued operations in 20

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ____________________________ FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A - 16 OR 15D - 16 OF THE SECURITIES EXCHANGE ACT OF 1934 30 September 2022 Commission File No. 001-32846 ____________________________ CRH public limited company (Translation of registrant's name into English) Belgard Castle, Clondalkin, Dublin 22, Ireland. (Address of principal executive offices) ____________________________ Indicate by check mark w ...

Interim Results 2022 Key Messages • Good performance … further growth in sales, EBITDA & margin • Efficient & disciplined capital allocation … $3.8bn divestment of Building Envelope business … $2.8bn invested in solutions-focused acquisitions … Interim dividend +4%; share buyback ongoing • Strong & flexible balance sheet • Outlook positive in a challenging cost environment … FY EBITDA expected to be c.$5.5bn … performance underpinned by resilient & integrated solutions strategy * 2021 continuing operations ...