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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

(Mark One)



| ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------------

OR



|X | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended: December 31, 2014

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from to

OR



| ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

Date of event requiring this shell company report

Commission file number: 001-32846



CRH public limited
company

(Exact name of Registrant as specified in its charter)



Republic of Ireland

(Jurisdiction of incorporation or organisation)



Belgard Castle,
Clondalkin, Dublin 22, Ireland

(Address of principal executive offices)



Maeve Carton

Tel: +353 1 404 1000

Fax: +353 1 404 1007

Belgard Castle, Clondalkin, Dublin 22, Ireland

(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)



Securities registered or
to be registered pursuant to Section 12(b) of the Act.



|                                                                   |  |                                          
|------------------------------------------------------------------ |  | -----------------------------------------
|Title of Each Class                                                |  | Name of Each Exchange On Which Registered
|CRH plc                                                            |  |                                          
|Ordinary Shares/Income Shares of 0.34 each                        |  | The New York Stock Exchange*             
|                                                                   | 
|American Depositary Shares, each representing the right to receive |  | The New York Stock Exchange              
|one Ordinary Share                                                 |  |                                          
|CRH America Inc.                                                   |  |                                          
|4.125% Notes due 2016 guaranteed by CRH plc                        |  | The New York Stock Exchange              
|6.000% Notes due 2016 guaranteed by CRH plc                        |  | The New York Stock Exchange              
|8.125% Notes due 2018 guaranteed by CRH plc                        |  | The New York Stock Exchange              
|5.750% Notes due 2021 guaranteed by CRH plc                        |  | The New York Stock Exchange              



|* | Not for trading but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange
Commission.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

Securities registered or to be registered pursuant to Section 12(g) of the Act.None



Securities for which
there is a reporting obligation pursuant to Section 15(d) of the Act. None



Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the
annual report.



|                                                  |  |  |             | 
|------------------------------------------------- |  |  | ----------- | 
|Ordinary Shares/Income Shares of 0.34 each **    |  |  | 744,525,936 | 
|5% Cumulative Preference Shares of 1.27 each     |  |  | 50,000      | 
|7% A Cumulative Preference Shares of 1.27 each |  |  | 872,000     | 



|** | Each Income Share is tied to an Ordinary Share and may only be transferred or otherwise dealt with in conjunction with such Ordinary Share.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes
X No  ̈

If this report is an annual or
transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes
 ̈ No X

Note  Checking the box above
will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No  ̈

Indicate by check mark whether the registrant has
submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).*** Yes  ̈ No  ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):



|                                                                           |  |  |  | 
|-------------------------------------------------------------------------- |  |  |  | 
|Large accelerated filer  X  Accelerated
filer   ̈  Non-accelerated
filer   ̈

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in
this filing:



|            |  |                                                              |  |        
|----------- |  | ------------------------------------------------------------ |  | -------
|U.S. GAAP  ̈ |  | International Financial Reporting Standards as issued by the |  | Other  ̈
|            |  | International Accounting Standards Board X                   |  |        

If Other has been checked in response to the previous question, indicate by check mark which financial
statement item the registrant has elected to follow. Item 17  ̈ Item 18  ̈

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes  ̈ No X



|*** | This requirement does not yet apply to the registrant.
|--- | ------------------------------------------------------





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CRH plc Annual Report on Form 20-F
 in respect of the year ended 31 December 2014Table of Contents


PageCross Reference to Form 20-F Requirements


1Chairmans Introduction


2A. Introduction


5B. Strategy Review


33C. Business Performance Review


65Current Year Review


66Prior Year Review


77D. Governance


85Board of Directors


87Corporate Governance


90Directors Remuneration Report


108E. Consolidated Financial Statements


132Report of Independent Registered Public Accounting Firm


133Consolidated Financial Statements


135F. Shareholder Information


195Listing of ExhibitsSignatures


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Cross Reference to Form 20-F Requirements This table has been provided as a cross reference from the information included in this Annual Report to the requirements of this 20-F.  PageIntroduction and Performance Measures


6PART IItem 1.

Identity of Directors, Senior Management and Advisors


n/aItem 2.

Offer Statistics and Expected Timetable


n/aItem 3.

Key InformationA - Selected financial data


8, 198B - Capitalisation and indebtedness


n/aC - Reasons for the offer and use of proceeds


n/aD - Risk factors


52Item 4.

Information on the CompanyA - History and development of the Company


11B - Business overview


9, 11, 15C - Organisational structure


11D - Property, plants and equipment


29Item 4A.

Unresolved Staff Comments


NoneItem 5.

Operating and Financial Review and ProspectsA - Operating results


31, 34, 66B - Liquidity and capital resources


67C - Research and development, patent and licenses, etc.


32D - Trend information


66E - Off-balance sheet arrangements


69F - Tabular disclosure of contractual obligations


69G - Safe Harbor


9Item 6.

Directors, Senior Management and EmployeesA - Directors and senior management


87B - Compensation


108C - Board practices


90D - Employees


32E - Share ownership


121, 197Item 7.

Major Shareholders and Related Party TransactionsA - Major shareholders


197B - Related party transactions


185C - Interests of experts and counsel


n/aItem 8.

Financial InformationA - Consolidated statements and other financial information


132, 198- Legal proceedings


32- Dividends


198B - Significant changes


68Item 9.

The Offer and ListingA - Offer and listing details


196B - Plan of distribution


n/a
 PageC - Markets


196D - Selling shareholders


n/aE - Dilution


n/aF - Expenses of the issue


n/aItem 10.

Additional InformationA - Share capital


n/aB - Memorandum and articles of association


204C - Material contracts


44D - Exchange controls


207E - Taxation


202F - Dividends and paying agents


n/aG - Statements by experts


n/aH - Documents on display


207I - Subsidiary information


n/aItem 11.

Quantitative and Qualitative Disclosures about Market Risk


68Item 12.

Description of Securities Other than Equity SecuritiesA - Debt securities


n/aB - Warrants and rights


n/aC - Other securities


n/aD - American depositary shares


200PART IIItem 13.

Defaults, Dividend Arrearages and Delinquencies


NoneItem 14.

Material Modifications to the Rights of Security Holders and Use of Proceeds


NoneItem 15.

Controls and Procedures


106Item 16A.

Audit Committee Financial Expert


97Item 16B.

Item 16B. Code of Ethics


106Item 16C.

Principal Accountant Fees and Services


207Item 16D.

Exemptions from the Listing Standards for Audit Committees


n/aItem 16E.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers


198Item 16F.

Change in Registrants Certifying Accountant


NoneItem 16G.

Corporate Governance


90Item 16H.

Mine Safety Disclosures


29PART IIIItem 17.

Financial Statements


n/aItem 18.

Financial Statements


132Item 19.

Exhibits


208


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Chairmans
Introduction Dear Shareholder, In the Chief
Executives introduction to last years Annual Report, Albert Manifold set out the areas of focus for management in 2014. He highlighted dynamic portfolio management together with maintaining CRHs traditional tight cost control,
capital discipline and focus on returns as being key to driving growth and to rebuilding margins in the coming years. A significant amount of progress has
been made in the past 12 months, which is reflected in the results and performance for 2014. In particular, we are pleased with progress in the multi-year divestment programme and the related reshaping of the Groups portfolio. The Groups financial strength was further enhanced during the year by two bond issuances, co-ordinated by Maeve Carton, our Finance Director, and her
team, in the amounts of 600 million and CHF330 million. The record low coupons achieved by the Group for these bonds reflect our track record in debt markets and the value that results from our investment grade credit ratings. In respect of 2014, the Board is recommending a final dividend of 44c per share. If approved at the 2015 Annual General Meeting, this will maintain the
full-year dividend at 62.5c per share. During the last year, my non-executive colleagues and I have spent a considerable amount of time working with
the executive Directors and the wider management team on reviewing and refining the Groups strategy in the context of the evolution of key markets and products over time and in setting the priorities for the Group. On 1 February 2015 we
announced that CRH had entered into a binding commitment to acquire certain assets from Lafarge S.A. (Lafarge) and Holcim Ltd (Holcim) for a total enterprise value of 6.5 billion, subject to: (i) CRH shareholder
approval at an Extraordinary General Meeting to be held on 19 March 2015; (ii) the successful completion of the






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LOGO  proposed merger of Lafarge and Holcim; and (iii) the completion of certain local reorganisations by Lafarge and
Holcim in advance of the acquisition. The Board believes that this acquisition, which arises from regulatory requirements for industry deconsolidation in connection with the merger of Lafarge and Holcim, represents a compelling strategic opportunity
for the Group, and that our financial, capital and operational discipline has positioned the Group to take advantage of this unique opportunity at this time. The placing of approximately 74 million shares in CRH plc, which completed on 5 February
2015, raised 1.6 billion as part of the financing of this acquisition. Further details are set out on page 44 and in note 33 to the Consolidated Financial Statements. In 2015, in addition to the integration plan for the Lafarge/Holcim assets, on the approval of shareholders, the Board will continue to focus on talent
management, cyber security, and working towards the achievement of sustainability, safety and environmental priorities. In relation to safety, 2015 will see the introduction of a new Chairmans award for safety excellence in the Group. During 2014, the Board redoubled its ongoing focus on the area of compliance and ethics to ensure that CRHs processes are robust and in line with best
practice across the Group. In the current training cycle a further 32,000 employees participated in Code of Business Conduct training. A further 11,000 also undertook advanced instruction on changing regulatory environments, anti-bribery rules,
competition law and other relevant areas such as corruption and fraud. We remain vigilant in our business practices in this area and are responsive to all regulatory agencies. Notwithstanding this work, as we announced in May 2014 the Swiss Competition Commission has an open investigation in respect of practices in the sanitary
building products sector in Switzerland and its Secretariat has recommended that the industry, of which certain CRH group companies are members, be fined. Engagement with the Swiss Competition Commission is ongoing and CRH is responding vigorously
to the allegations made by the Secretariat. In doing so, we maintain our initial assessment that the case is ill-founded and that the proposed fine in respect of the Group is unjustified.
 Two new non-executive Directors joined the Board in recent months. Pat Kennedy was appointed in January 2015
while Lucinda Riches has been appointed with effect from 1 March 2015. Their biographies, along with those of the rest of the Board are set out on pages 87 to 89. Further details on the ongoing process of Board renewal are set out in the
Nomination & Corporate Governance Committee Report on page 93. All Directors will retire at the Annual General Meeting on Thursday,
7 May 2015, with those eligible offering themselves for re-election. I strongly recommend that shareholders vote in favour of each of the individuals putting themselves forward for re-election. As part of the Boards planned renewal process, John Kennedy and Dan OConnor will step down from the Board at the conclusion of the 2015 Annual
General Meeting on 7 May 2015. On behalf of the Board, I would like to thank John and Dan for their commitment and great service to CRH over many years. Finally, I would like to take the opportunity to thank Albert and his team for their significant achievements over the past year. Nicky Hartery, Chairman


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4        CRH



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Introduction  PageIntroduction and Performance Measures


6History, Development and OrganisationalStructure of the Company


11Business Overview


11Operational Snapshot


12Operational Reviews


14Mineral Reserves


28Property, Plants and Equipment


29Development Review


30The Environment and Government Regulations


31


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Introduction and Performance Measures  Reconciliation of EBITDA (as defined)* and Operating Profit (by segment) to Group ProfitContinuing operations - year ended 31 DecemberGroup operating profit before
depreciation and amortisation
(EBITDA (as defined)*)


Depreciation, amortisation
and impairment


Group operating profit12014m


2013m


2012m


2014m


2013m


2012m


2014m


2013m


2012mEurope Heavyside


380



326



426



229



721



239



151



(395
)


187Europe Lightside


94



71



78



23



43



29



71



28



49Europe Distribution


190



186



217



78



80



72



112



106



145Europe


664



583



721



330



844



340



334



(261
)


381Americas Materials


609



557



555



254



331



276



355



226



279Americas Products


263



246



204



118



178



118



145



68



86Americas Distribution


105



89



83



22



22



24



83



67



59Americas


977



892



842



394



531



418



583



361



424Total Group


1,641



1,475



1,563



724



1,375



758



917



100



805Profit on disposals


























77



26



230Finance costs less income


























(246
)


(249
)


(256
)Other financial expense


























(42
)


(48
)


(49
)Share of equity accounted investments profit/(loss)











55



(44
)


(84
)Profit/(loss) before tax


























761



(215
)


646Income tax expense


























(177
)


(80
)


(106
)Group profit/(loss) for the financial year











584



(295
)


5401 Throughout this document, Group operating profit as shown in the Consolidated Financial
Statements excludes profit on disposals.  Calculation of EBITDA (as defined)* Net Interest Cover2014m


2013m


2012mInterestFinance costs1



254



262



271Finance income1


(8
)


(13
)


(15
)Net interest


246



249



256EBITDA (as defined)*


1,641



1,475



1,563TimesEBITDA (as defined)* net interest cover (EBITDA (as defined)* divided by net interest)


6.7



5.9



6.11 These items appear on the Consolidated Income
Statement on page 135.  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity
accounted investments result after tax.






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CRH Website  Information on or accessible through our website, www.crh.com, other than the item identified as the Annual
Report on Form 20-F, does not form part of and is not incorporated into this document. References in this document to other documents on the CRH website such as the Circular to shareholders in respect of
the proposed Acquisition, are included only as an aid to their location. The Groups website provides the full text of the Annual and Interim Reports, the Annual Report on Form 20-F, which is filed annually with the United States Securities and
Exchange Commission, trading statements, interim management statements, copies of presentations to analysts and investors and circulars to shareholders. News releases are made available, in the News & Events section of the website,
immediately after release to the Stock Exchanges. Key Information The Consolidated Financial Statements of CRH plc have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted
by the International Accounting Standards Board. Selected financial data has been presented for the five years ended on 31 December 2014 on page 8.
For the three years ended 31 December 2014, the selected financial data is qualified in its entirety by reference to, and should be read in conjunction with, the audited Consolidated Financial Statements, the related Notes and the Business
Performance Review section included elsewhere in this Annual Report on Form 20-F (Annual Report or Form 20-F). Non-GAAP Performance
Measures CRH uses a number of non-GAAP performance measures to monitor financial performance. These are summarised below and discussed later in this
report. Net Debt. Net debt is used by management as it gives a more complete picture of the Groups current debt situation than total
interest-bearing loans and borrowings. Net debt is provided to enable investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. Net debt is a non-GAAP measure and comprises current and non-current
interest-bearing loans and borrowings, cash and cash equivalents and current and non-current derivative financial instruments. A reconciliation of total interest-bearing loans and borrowings to net debt is set out in note 20 to the Consolidated
Financial Statements. EBITDA (as defined). EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment
charges, profit on disposals and the Groups share of equity accounted investments result after tax and is quoted by management to aid investors in their analysis of the performance of the Group and to assist investors in the comparison
of the Groups performance with that of other companies. EBITDA (as defined) and operating profit results by segment are monitored by management in order to allocate resources between segments and to assess performance. Given that net finance
costs and income tax are managed on a centralised basis, these items are not allocated between operating segments for
 the purpose of the information presented to the Chief Operating Decision-Maker. EBITDA (as
defined)* Net Interest Cover. EBITDA net interest cover is used by management as a measure which matches the earnings and cash generated by the business to the underlying funding costs. EBITDA (as defined)* net interest cover is presented to
provide a greater understanding of the impact of CRHs debt and financing arrangements and, as discussed in note 23 to the Consolidated Financial Statements, is a metric used in lender covenants. It is the ratio of EBITDA (as defined)* to net
interest and is calculated on page 6. The definitions and calculations used in lender covenant agreements include certain specified adjustments to the
amounts included in the Consolidated Financial Statements. The ratios as calculated on the basis of the definitions in those covenants are disclosed in note 23 to the Consolidated Financial Statements. Organic Revenue, Organic Operating Profit. CRH pursues a strategy of growth through acquisitions and investments, with 188 million spent on
acquisitions and investments in 2014 (2013: 720 million). Acquisitions completed in 2013 and 2014 contributed incremental sales revenue of 237 million and operating profit of 4 million in 2014. Proceeds from divestments
and non-current asset disposals amounted to 345 million (2013: 283 million). The sales impact of divested activities in 2014 was a negative 25 million and because these operations generated net losses in 2013, the
disposal impact at operating profit level was a contribution of 1 million compared to 2013. During 2014, the US Dollar remained relatively
stable at approximately 1.33 against the euro, however the weakening of currencies like the Ukrainian Hryvnia and Canadian Dollar, partly offset by the strengthening of Sterling, were the principal factors behind the exchange effects disclosed on
page 67. Because of the impact of acquisitions, divestments, exchange translation and other non-recurring items on reported results each year, the Group uses organic revenue and organic operating profit as additional performance indicators to assess
performance of pre-existing (also referred to as underlying, heritage, like-for-like or ongoing) operations each year. Organic revenue and organic
operating profit is arrived at by excluding the incremental revenue and operating profit contributions from current and prior year acquisitions and divestments, the impact of exchange translation and the impact of any non-recurring items. In the
Business Performance Review section which follows, changes in organic revenue and organic operating profit are presented as additional measures of revenue and operating profit to provide a greater understanding of the performance of the Group. A
reconciliation of the changes in organic revenue and organic operating profit to the changes in total revenue and operating profit for the Group and by segment is presented with the discussion of each segments performance in tables contained
in the segment discussion commencing on page 70.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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Introduction and Performance Measures |
continued  Selected Financial DataYear ended
31 December (amounts in millions, except per share data and ratios)2014


20131


20122


20112


20102m


m


m


m


mConsolidated Income Statement DataRevenue


18,912



18,031



18,084



18,081



17,173Group operating profit


917



100



805



871



698Profit/(loss) attributable to equity holders of the Company


582



(296
)


538



580



432Basic earnings/(loss) per Ordinary Share


78.9c



(40.6c
)


74.6c



81.2c



61.3cDiluted earnings/(loss) per Ordinary Share


78.8c



(40.6c
)


74.5c



81.2c



61.2cDividends paid during calendar year per Ordinary Share


62.5c



62.5c



62.5c



62.5c



62.5cAverage number of Ordinary Shares outstanding3


737.6



729.2



721.9



714.4



704.6Ratio of earnings to fixed charges (times)4


2.6



0.75



2.6



2.4



2.1All data relates to continuing operationsConsolidated Balance Sheet DataTotal assets


22,017



20,429



20,900



21,384



21,461Net assets6


10,198



9,686



10,589



10,593



10,411Ordinary shareholders equity


10,176



9,661



10,552



10,518



10,327Equity share capital


253



251



249



247



244Number of Ordinary
Shares3


744.5



739.2



733.8



727.9



718.5Number of Treasury Shares and own shares3


3.8



6.0



7.4



8.9



9.5Number of Ordinary Shares net of Treasury Shares and own
shares3


740.7



733.2



726.4



719.0



709.0 1      Group operating profit includes asset impairment
charges of 650 million in 2013, with an additional 105 million impairment charge included in loss attributable to equity holders of the company in respect of equity accounted investments. Details are contained in note 2 to the
Consolidated Financial Statements. 
2      On 1 January 2013, the Group adopted IFRS 11 Joint Arrangements and IAS 19 Employee
Benefits (revised). As a result, the prior year comparatives were restated as required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The 2010 data was not adjusted retrospectively for the adoption of IAS 19 Employee
Benefits (revised) due to the practical difficulties associated with obtaining such information. 
3      Shown in millions of shares.
 4      For the purposes of
calculating the ratio of earnings to fixed charges, in accordance with Item 503 of Regulation S-K, earnings have been calculated by adding: profit/(loss) before tax adjusted to exclude the Groups share of equity accounted
investments result after tax, fixed charges and dividends received from equity accounted investments; and the fixed charges were calculated by adding interest expensed and capitalised, amortised premiums, discounts and capitalised expenses
related to indebtedness, an estimate of the interest within rental expense and preference security dividend requirements of consolidated subsidiaries. 
5      The amount of the deficiency in 2013 was US$183 million.
 6      Net assets is
calculated as the sum of total assets less total liabilities.






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Forward-Looking Statements  In order to utilise the Safe Harbor provisions of the United States
Private Securities Litigation Reform Act of 1995, CRH public limited company (the Company), and its subsidiaries (collectively, CRH or the Group) is providing the following cautionary statement. This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of CRH and certain of the
plans and objectives of CRH including the statements under: Strategy Review  Chief Executives Introduction  Outlook for 2015; in the Business Performance Review  Finance Directors Introduction
with respect to our belief that the Group has sufficient resources to meet its debt obligations and capital and other expenditure requirements in 2015; in the Business Performance Review section with respect to our expectations regarding
economic activity and fiscal developments in our operating regions; our expectations for the residential, non-residential and infrastructure markets, our expectation for operating profits and/or margins in 2015 under the heading Outlook
in each of the six operating segment reviews; under the heading Strategy Review - Proposed Acquisition - Announced February 2015 with respect to the expected benefits and reasons for the proposed Acquisition, the timing of regulatory
approvals and other conditions and the timing for completion of the proposed Acquisition; under the heading China and India  Equity Accounted Investments  Outlook with respect to future market conditions in China and India;
and under the heading Risk Factors  Financial instruments with respect to the expected PBITDA/net interest cover as a result of the proposed Acquisition. These forward-looking statements may generally, but not always, be identified
by the use of words such as will, anticipates, should, expects, is expected to, estimates, believes, intends or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in
the future and reflect the Companys current expectations and assumptions as to such future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from
those expressed or implied
 by these forward-looking statements, certain of which are beyond our control and which include, among other things: economic and financial conditions generally in various countries and regions
where we operate; the pace of recovery in the overall construction and building materials sector; demand for infrastructure, residential and non-residential construction in our geographic markets; increased competition and its impact on prices;
increases in energy and/or raw materials costs; adverse changes to laws and regulations; adverse political developments in various countries and regions; failure to complete or successfully integrate acquisitions; and the specific factors identified
in the discussions accompanying such forward-looking statements and under Risk Factors in this document. Statements Regarding Competitive Position and
Construction Activity Statements made in the Description of the Group and in the Business Performance Review sections referring to the Groups
competitive position are based on the Groups belief, and in some cases rely on a range of sources, including investment analysts reports, independent market studies and the Groups internal assessment of market share based on
publicly available information about the financial results and performance of market participants. Unless otherwise specified, references to construction
activity or other market activity relate to the relevant market as a whole and are based on publicly available information from a range of sources, including independent market studies, construction industry data and economic forecasts for
individual jurisdictions. Seasonality Activity in the
construction industry is characterised by cyclicality and is dependent to a considerable extent on the seasonal impact of weather in the Groups operating locations, with activity in some markets reduced significantly in winter due to inclement
weather. First-half sales accounted for 44% of full-year 2014 (2013: 44%), while EBITDA (as defined)* for the first six months of 2014 represented 31% of the full-year out-turn (2013: 27%).
    *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share
of equity accounted investments result after tax.


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Introduction and Performance Measures |continued Exchange Rates  In this Form 20-F, references to US$, US Dollars or US cents are to the
United States currency, references to euro, euro cent, cent, c or  are to the euro currency and Stg£ or Sterling are to the currency of the United
Kingdom of Great Britain and Northern Ireland (United Kingdom or UK). Other currencies referred to in this Form 20-F include Polish Zloty (PLN), Swiss Franc (CHF), Canadian Dollar (CAD),
Chinese Renminbi (RMB), Argentine Peso (ARP), Turkish Lira (TRY), Indian Rupee (INR), Ukrainian Hryvnia (UAH) and Israeli Shekel (ILS). For the convenience of the reader, this Form 20-F contains translations of certain euro amounts into US Dollars at specified rates. These translations should
not be construed as representations that the euro amounts actually represent such US Dollar amounts or could be converted into US Dollars at the rate indicated. The Federal Reserve Bank of New York Noon Buying Rate (the FRB Noon Buying
Rate) on 31 December 2014 was 1 = US$1.2101 and on 6 March 2015 was 1 = US$1.0855.
 The table below sets forth, for the periods and dates indicated, the average, high, low and end-of-period
exchange rates in US Dollars per 1 (to the nearest cent) using the FRB Noon Buying Rate. These rates may vary slightly from the rates used for translating foreign currencies into euro in the preparation of the Consolidated Financial Statements
(see page 145). For a discussion on the effects of exchange rate fluctuations on the financial condition and results of the operations of the Group, see
the Business Performance Review section beginning on page 66.
   Exchange
RatesYears ended 31 December

Period End


Average Rate1


High


Low2010


1.33



1.32



1.45



1.202011


1.30



1.40



1.49



1.292012


1.32



1.29



1.35



1.212013


1.38



1.33



1.38



1.282014


1.21



1.32



1.39



1.212015 (through 6 March 2015)


1.09



1.11



1.20



1.09Months endedSeptember 2014


1.26



1.29



1.31



1.26October 2014


1.25



1.27



1.28



1.25November 2014


1.24



1.25



1.26



1.24December 2014


1.21



1.23



1.25



1.21January 2015


1.13



1.16



1.20



1.13February 2015


1.12



1.14



1.15



1.12March 2015 (through 6 March 2015)


1.09



1.11



1.12



1.09 1     The average of the US Dollar/euro exchange rate on the last
day of each month during the period or in the case of monthly averages, the average of all days in the month, in each case using the FRB Noon Buying Rate.






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History, Development and
Organisational Structure of the Company    CRH public limited company is the parent company of a diversified international group of companies which provide
building materials across the spectrum of the construction industry  from building foundations to frame and roofing, to fitting out the interior space and improving the exterior environment, onsite works and infrastructural projects, our
materials and products are used extensively. The Group resulted from the merger in 1970 of two leading Irish public companies, Cement Limited (established
in 1936) and Roadstone, Limited (incorporated in 1949). Cement Limited manufactured and supplied cement while Roadstone, Limited was primarily involved in the manufacture and supply of aggregates, readymixed concrete, mortar, coated macadam, asphalt
and contract surfacing to the Irish construction industry. The Company is incorporated and domiciled in the Republic of Ireland. CRH is a public limited
company operating under the Companies Acts of Ireland, 1963 to 2013 and the Investment Funds, Companies and Miscellaneous Provisions Act, 2006, each as amended. The Groups worldwide headquarters are located in Dublin, Ireland. Our principal
executive offices are located at Belgard Castle, Clondalkin, Dublin 22 (telephone: +353 1 404 1000). The Companys registered office is located at 42 Fitzwilliam Square, Dublin 2, Ireland and our US agent is Oldcastle, Inc., 900 Ashwood
Parkway, Suite 600, Atlanta, Georgia 30338. The Company is the holding company of the Group, with direct and indirect share and loan interests in subsidiaries, joint ventures and associates. From Group headquarters, a small team of executives
exercise strategic control over our decentralised operations. CRH, which has a premium listing on The London Stock Exchange Limited (London Stock
Exchange), is also one of the largest companies, based on market capitalisation, quoted on The Irish
 Stock Exchange Limited (Irish Stock Exchange) in Dublin. CRHs American Depositary
shares are listed on the New York Stock Exchange (NYSE) in the United States. The market capitalisation of CRH as of 31 December 2014 was 14.7 billion. CRH is a constituent member of the FTSE 100 index and the ISEQ 20. As outlined in note 1 to the Consolidated Financial Statements, in conjunction with the ongoing portfolio review, the Group reorganised its European business in
2014 and is organised into six business segments which form the operational organisational structure and are outlined further in the sections that follow. In the detailed description of the Groups business that follows, estimates of the Groups various aggregates and stone reserves have been provided by
engineers employed by the individual operating companies. Details of product end-use by sector for each reporting segment are based on management estimates. As a result of planned geographic diversification since the mid-1970s, and most particularly in the period 2001 to 2008, the Group has expanded by acquisition
and organic growth into an international manufacturer and supplier of building materials. CRH is a leading global building materials group employing approximately 76,000 people at over 3,300 locations worldwide. For over four decades, CRH has
developed and implemented a proven model of business improvement. By building better businesses across our international operations, we have grown to be a leader in the global building materials industry. We operate in 34 countries and we are the
largest building materials company in North America, a regional leader in Europe, and have strategic positions in Asia. The principal subsidiary
undertakings and equity accounted investments are listed in Exhibit 8 to this Annual Report on Form 20-F.
    Business Overview The percentage of Group revenue and operating profit for each of the six reporting segments for 2014, 2013 and 2012 is as follows:  Business
Overview2014




2013




2012Operating







Operating







OperatingRevenue


profit




Revenue


profit




Revenue


profitShare of revenue and operating profitEurope
Heavyside1


21%



16%





21%



(395%
)




22%



23%Europe Lightside


5%



8%





5%



28%





5%



6%Europe Distribution


21%



12%





22%



106%





22%



18%Americas Materials


27%



39%





26%



226%





27%



35%Americas Products


17%



16%





17%



68%





15%



11%Americas Distribution


9%



9%





9%



67%





9%



7%Total


100%



100%





100%



100%





100%



100% 1     See Business Operations in
Europe on page 17 for details of non-European countries grouped with Europe for reporting purposes.


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Operational Snapshot |sector exposure and end-use based on 2014 EBITDA (as defined)*  LOGO  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax. **
Net assets at 31 December 2014 comprise segment assets less segment liabilities as disclosed in note 1 to the Consolidated Financial Statements. 
Including equity accounted investments.






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LOGO  1
Throughout this document annualised volumes have been used which reflect the full-year impact of acquisitions made during the year and may vary from actual volumes produced. 2
Throughout this document tonnes denote metric tonnes (i.e. 1,000 kilogrammes).


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Business Operations in Europe Europe Heavyside  In 2014, the Group reorganised its European business by integrating its former Materials Division with the
concrete and clay businesses of the former Products Division into one Heavyside organisation. The purpose of this reorganisation is to enable CRH to maximise the benefits and synergies of our operating plant network in both Western and Eastern
European markets. Europe Heavysides strategy is to build leading regional positions in businesses that are vertically integrated and which have the
potential to grow further in the large European construction markets. We deliver our strategy through a focus on a balanced exposure to demand, product penetration and on maximising the benefits of scale and best practice. Our business is
differentiated and achieves competitive advantage through a commitment to constant product, process and end-use improvement. Europe Heavyside is organised
into two regional divisions: Western Europe, which comprises our cement, aggregates, asphalt, concrete and clay operations primarily in Switzerland, Germany, UK, Benelux, France, Denmark, Ireland and Spain, and Eastern Europe which includes our
cement, aggregates, asphalt and concrete businesses in Poland, Ukraine and Finland. The business model of vertical integration is founded in resource-backed cement and aggregates assets, which support the manufacture and supply of cement,
aggregates, readymixed and precast concrete, concrete landscaping and asphalt products. Consequently, a key focus for the Heavyside Division is the ongoing process of extending and adding to reserves. We operate a network of well-invested facilities
 and place great emphasis on excellence initiatives across the business. CRHs approach to Building Better
Businesses ensures a focus on achieving greater production efficiencies and realising operational, logistical and procurement synergies across our network. A commitment to a sustainable future results in greater use of alternative fuels and the
manufacture of low carbon cements. Our development focus is centred on bolt-on acquisitions for synergies, reserves and further vertical integration, in
addition to opportunities in contiguous regions to extend and strengthen regional positions; this includes developing markets in Eastern Europe that offer long-term growth potential, with entry via cement and aggregates assets and the potential to
roll out operational excellence programmes and a vertical integration approach over time. In the context of the detailed review of the portfolio undertaken by the Group during 2014, CRH announced in December 2014 that it had reached agreement to
dispose of its clay and concrete businesses in the UK. The transaction closed in the first quarter of 2015. Europe Heavyside employs approximately 19,100
people at close to 800 locations in 21 countries.  Marlux/Stradus Infra created award winning water permeable paving - Virage, shown in this picture. These innovative tiles provide creative opportunities
for architects and consumers, where multiple different patterns can be composed with just one element.
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Cementis a primary
building material used in the construction industry. It is manufactured by reacting limestone with small quantities of other materials in a kiln through a carefully controlled high temperature process. This produces clinker, which is then milled
into a fine powder to become cement. Cement production is capital-intensive. Cement is used principally as a binding agent to bind other materials together  most commonly it is mixed with sand, stone or other aggregates and water. Cement
customers primarily comprise concrete producers and merchants supplying construction contractors and others. Where CRH has both cement and concrete operations, a significant portion of cement sales is typically supplied to those concrete operations.
While cement or clinker may be imported from other countries, competition comes mainly from other large cement producers located within each country. CRHs cement activities in Belgium and the Netherlands relate to cement transport and trading. Aggregatesare naturally occurring sand, gravel or crushed
stone deposits such as granite, limestone and sandstone. Recycled (end-of-life) concrete increasingly features as an aggregate. CRH cement plants are generally located at or near the limestone reserves used to supply the plants. In Finland, CRH buys
the aggregate raw materials for its two cement plants as the Group does not own limestone reserves near the plants. For additional information on the location and adequacy of all of the Groups mineral reserves, see the Mineral Reserves section
on pages 28 and 29. Concrete Products and Readymixed
Concrete:In addition to readymixed concrete CRH manufactures other concrete products for two principal end-uses: pavers, tiles and blocks for architectural use, and floor and wall elements, beams
and vaults for structural use. In addition, sand-lime bricks are produced for the residential market. Principal raw materials include cement, crushed stone and sand and gravel, all of which are readily available locally. The Clay Productsgroup principally produces clay facing bricks, pavers,
blocks and rooftiles. Aggregates, asphalt and related services are sold principally to local governmental highway authorities and to contractors.
Readymixed concrete, concrete products (manufactured mainly at locations with aggregates on site and including block, masonry, pipe, rooftiles and paving) and clay products are sold to both the public and private construction sectors. Competition
comes mainly from other large aggregates, asphalt, readymixed concrete, concrete products producers and clay producers, as well as from a variety of smaller manufacturers in local economies.
 Joint Venture Interests CRH holds a 50% equity interest in My Home Industries Limited (MHIL), a cement producer headquartered in Hyderabad serving the Andhra Pradesh and
Telangana regions of southeast India. In November 2014, CRH disposed of its 50% equity interest in Denizli Çimento, an integrated cement and readymixed concrete business in Turkey. Details of this disposal are set out in note 4 to the
Consolidated Financial Statements on page 151. Associate Interests CRH holds a 26% equity interest in Yatai Building Materials Companys cement operations (Yatai Cement), with cement and concrete operations in
Jilin, Heilongjiang and Liaoning provinces in northeastern China. CRH has a 25% equity interest in Mashav, the holding company for the sole producer of cement in Israel.   Products and Services - Locations1   Cement Belgium, Finland, Ireland, Netherlands, Poland, Spain, Switzerland,
Ukraine, United Kingdom   Aggregates Estonia, Finland, Ireland, Latvia, Netherlands, Poland, Slovakia,
Spain, Switzerland, Ukraine   Asphalt Ireland, Poland, Switzerland   Readymixed Concrete Belgium, Estonia, Finland, Ireland, Netherlands, Poland,
Russia, Spain, Switzerland, Ukraine   Lime Ireland, Poland   Concrete Products Belgium, Denmark, Estonia, Finland, France, Germany, Hungary,
Ireland, Netherlands, Poland, Romania, Slovakia, Spain, Switzerland, United Kingdom, Ukraine   Clay Products Germany, Netherlands, Poland, United Kingdom    1
Excludes joint venture and associate interests. Results for these entities are equity accounted in the Consolidated Financial Statements.


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Business Operations in Europe| continued Europe Lightside  Europe Lightside produces and supplies high-value, award-winning products, expert solutions and other
technologies for often challenging construction projects. The Division is organised into four business areas: Construction Accessories, Shutters & Awnings, Fencing and Cubis (composite access chambers). We buy, build and grow business units
with market-leading positions and strong growth prospects, selling through a range of flagship brands at a regional and European level. The Lightside
Division grows both organically and by acquisition to create leading positions within our chosen markets. We maximise synergies across the business in the areas of performance improvement, procurement, talent management and product development. We have a relentless focus on innovation. Lightside customers are specialist end-users, including architects and engineers. Using our pan-European presence and
scale, we work closely with them to develop design solutions that are approved and certified for individual target markets. We draw upon an outstanding
record of enabling mature and high-growth businesses alike to expand their offerings, and develop their markets. Lightside has achieved consistently attractive returns. The resilience of these returns reflects active, balanced management of our
product range and our geographic and business-cycle exposures. Our development strategy is to deepen our positions in existing markets and technologies in
developed European markets, to broaden our product range in selected growth categories, and to expand our presence in developing regions outside Europe as construction markets in those areas become more sophisticated. This strategy complements CRHs aim to provide innovative solutions that meet the longer-term opportunities presented by economic development, changing
demographics and sustainability. Employees total approximately 5,000 people at circa 100 operating locations in 17 countries. Our Construction Accessories businesses supply a broad range of connecting, fixing and anchor systems to the construction industry. Shutters & Awnings serve the attractive RMI and residential end-use markets, supplying sun protection, energy-saving, and outdoor living
technologies. Fencing designs, manufactures and installs fully integrated perimeter security solutions. Cubis manufactures composite access chambers and access covers for telecoms, rail, roads, water and power. Competition comes mainly from a limited number of multi-country Lightside suppliers as well as from a variety of smaller manufacturers in local economies and
some from more traditional products/solutions (substitutes).
 Products and Services - Locations   Construction Accessories Australia, Austria, Belgium, China, Czech Republic,
France, Germany, Ireland, Italy, Malaysia, Netherlands, Norway, Poland, Spain, Switzerland, Sweden, United Kingdom   Shutters & Awnings Germany, Netherlands, United Kingdom   Fencing and Cubis (Composite Access Chambers) France, Germany, Ireland, Netherlands, Sweden, United Kingdom






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Europe Distribution  Europe Distributions strategy is to grow its network presence in the largely unconsolidated core European
markets while also investing in other attractive segments of building materials distribution. Operational excellence is delivered through optimising the supply chain and providing superior customer service. We have leading General Builders Merchant positions in the Netherlands, Switzerland, northern Germany, Austria and France which service the growing repair,
maintenance and improvement construction sector. Our businesses cater to the needs of small and medium-sized builders, selling a range of bricks, cement, roofing and other building products. Our specialist Sanitary, Heating and Plumbing (SHAP) business services the needs of plumbers, heating specialists and installers in Belgium, Germany
and Switzerland. In addition, Europe Distribution operates under four DIY brands: GAMMA (Netherlands and Belgium), Karwei (Netherlands), Hagebau (Germany)
and Maxmat (Portugal) selling to DIY enthusiasts and home improvers. Significant opportunities remain to expand our existing network and to gain exposure
to rising RMI demand and new growth platforms. Europe Distribution employs over 11,600 people at 659 locations. Professional Builders Merchants Professional Builders Merchants cater
to the heavyside sector and competition is encountered primarily from other merchanting chains and local individual merchants. CRH operates 167 branches in the Benelux and in Switzerland, the Group has a strong position as the largest builders
merchant. CRH is a major regional distributor in France, with 52 locations. The Group also has a strong regional presence in the northwest of Germany. Sanitary,
Heating and Plumbing (SHAP) Our SHAP business has been key to strengthening our exposure to growing RMI market demand. It operates in Belgium, Germany
and Switzerland with a total network of 132 branches. In Switzerland, the Group has a strong position as the only country-wide supplier of SHAP products. DIY CRH operates 135 Karwei and GAMMA DIY stores in the Netherlands and 19 GAMMA stores in Belgium. The stores operate within the Intergamma franchise
organisation, the largest DIY group in the Benelux. Buying and advertising is undertaken by Intergamma, which is owned by its franchisees. In Germany, Bauking operates 30 DIY stores under the brand name Hagebau. In Portugal, Maxmat is a 50% joint
venture cash and carry DIY chain with 30 stores. Associate Interests CRH holds a 21.13% equity interest in Samse S.A., a publicly-quoted distributor of building materials to the merchanting sector in the Rhône-Alpes region.
 Products and Services - Locations1   Professional Builders Merchants Austria, Belgium, France, Germany, Netherlands, Switzerland   Sanitary, Heating and Plumbing (SHAP) Benelux, Germany, Switzerland   DIY Stores Belgium, Germany, Netherlands    1
Excludes joint venture and associate interests. Results for these entities are equity accounted in the Consolidated Financial Statements.


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Business Operations in the Americas Americas Materials  Americas Materials strategy is to build strong regional leadership positions underpinned by well-located,
long-term reserves. We are the largest producer of asphalt and the third largest producer of both aggregates and readymixed concrete in the United States. We operate nationally in 44 states with over 13 billion tonnes of permitted aggregates
reserves of which circa 80% are owned. The business is vertically integrated from primary resource quarries into aggregates, asphalt and readymixed concrete products. With 60% exposure to infrastructure, the business is further integrated into
asphalt paving services through which it is the leading supplier of product to highway repair and maintenance demand in the United States. Our national
network of operations and deep local market knowledge drive local performance and national synergies in procurement, cost management and operational excellence. In a largely unconsolidated sector where the top ten industry participants account for
just 30% of aggregates production, 25% of asphalt production and 25% of readymixed concrete production, CRHs strategy is to position the business to participate as the industry consolidates further. Americas Materials employs approximately 18,400 people at close to 1,200 operating locations. For additional information on the location and adequacy of all of the Groups mineral reserves, see the Mineral Reserves section on pages 28 and 29. Americas Materials is broadly self-sufficient in aggregates and its principal purchased raw materials are liquid asphalt and cement used in the manufacturing of
asphalt and readymixed concrete respectively. These raw materials are available from a number of suppliers. There is a continued focus on improving bitumen and energy purchasing and we continue to source the lowest cost alternative energy for use in
asphalt production. Federal, state and local government authority road and infrastructural projects awarded by public bid represent a significant
proportion of work carried out by the Division. Americas Materials also has a broad commercial base, supplying stone, readymixed concrete and asphalt for industrial, office, shopping mall and private residential development and refurbishment.
 Americas Materials is organised geographically into East and West, divided into four and three further
sub-regions respectively. East: Northeast (including operations
in Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, New York, New Jersey and Connecticut); Mid-Atlantic (Pennsylvania, Delaware, Virginia, West
Virginia, Maryland, Kentucky and North Carolina); Central (Ohio, Indiana and Michigan); and Southeast (Alabama, Georgia, Mississippi, South Carolina and Florida). West: Central West (Oklahoma, Arkansas, western Tennessee, Missouri,
Kansas, Iowa, Nebraska, Minnesota, Illinois, South Dakota and Texas); Mountain West (Colorado, Wyoming, Utah, New Mexico, southern Idaho, Nevada and
Arizona); and Northwest (Washington, Oregon, Montana and northern Idaho).   Products and Services - Locations   Aggregates United States   Asphalt United States   Readymixed Concrete United States






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Americas Products Americas Products strategy is to build a portfolio of businesses which have leading market positions across a balanced range of products and end-use
segments. Our activities are organised into three product groups under the Oldcastle brand: Architectural Products (concrete masonry and hardscapes, clay brick, packaged lawn and garden products, packaged cement mixes, fencing); Precast (utility,
drainage and structural precast, construction accessories); and BuildingEnvelope® (architectural glass and aluminium glazing systems). The Groups commitment to Building Better Businesses
ensures a coordinated approach at national and regional levels to achieve economies of scale and to facilitate the sharing of best practices which drive operational and commercial improvement. Innovation is a hallmark of the business, and through
Oldcastles North American research and development centres, a pipeline of value-added products and design solutions is maintained. In the context of
the detailed review of the portfolio undertaken by the Group during 2014, CRH announced in December 2014 that it had reached agreement to dispose of its Glen-Gery clay business in the United States. The transaction closed in the first quarter of
2015. A national business operating in 39 US states, six Canadian provinces, Mexico and South America. CRH has the breadth of product range and national
footprint that combines providing a national service to customers with the personal touch of a local supplier. Focussing on strategic accounts and influencers in the construction supply chain, the Oldcastle Building Solutions group provides an
additional avenue for growth as it is uniquely positioned in the industry to create value for stakeholders across all phases of construction. The number of
employees in this division totals approximately 17,700 at nearly 400 locations. Building Products Architectural Products Group (APG) services the United States and Canada from 249 operating locations in 39 states and six Canadian provinces. The
residential and non-residential sectors combined account for 95% of APGs output, a significant proportion of which is used in the RMI and Do-It-Yourself (DIY) sectors. Competition for APG arises primarily from other locally-owned
products companies. Principal raw material supplies are readily available. APGs concrete masonry products are used for cladding, walls and
foundations. Hardscape products comprise pavers, retaining wall products and patio products. Lawn and garden products, mainly bagged and bulk mulch, soil and specialty stone products, are marketed to major DIY and homecenter chains across the United
States. Cement mixes, marketed under brands such as Sakrete®, and lightweight aggregates are also important product lines. Merchants Metals is also part of APG, a leading manufacturer and
distributor of fencing and related products, used by the residential, non-residential and infrastructure sectors.


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Business Operations in the Americas|
continued Americas Productscontinued  The Precast group produces precast, prestressed and polymer concrete products, small plastic box enclosures and
concrete pipe in the United States and Canada with 79 operating locations in 24 states and the province of Quebec. The most significant precast concrete
products are underground vaults sold principally to water, electrical and telephone utilities. Other precast items include drainage and sanitary sewer products such as pipe, manholes, inlets and catch basins, and street and highway products such as
median barriers, culverts and short span bridges. In many instances, precast products are an alternative to poured-in-place concrete, which is a significant competing product. Plastic enclosures are also supplied to water, electrical and telephone
utilities. Polymer trench is sold to the electric and railroad market. The Precast groups Building Systems and Modular business manufactures and
installs prestressed concrete flooring plank, modular precast structures and other products. These products are used mainly in structures such as hotels, apartments, dormitories and prisons. Concrete pipe is used for storm and sanitary sewer applications, which are largely local government projects. Competing materials include corrugated steel pipe
and high-density polyethylene pipe in storm sewer applications and plastic pipe in sanitary sewer applications. Precast also includes the Meadow Burke
operations, which supplies thousands of specialised products used in concrete construction activities. BuildingEnvelope® (BE) custom manufactures architectural glass and engineered aluminium glazing systems for multi-storey commercial, institutional and residential construction. With approximately 4,800
people and 52 locations in 22 states and four Canadian provinces, BE is the largest supplier of high-performance glazing products and services in North America, delivering to all of the top 50 Metropolitan Statistical Areas (MSAs) in the United
States and to Canada. Tempered glass and engineered aluminium glazing systems are building products with major applications in the RMI construction sector
and have a wide range of architectural applications. The architectural glass product range includes insulated, spandrel, laminated, security and sound control glass manufactured in a
 variety of shapes, thicknesses, colours and qualities. Engineered aluminium glazing systems include a broad range
of storefront and entrances, curtain wall and architectural windows. South America CRH operates six companies in Argentina and Chile. Canteras Cerro Negro is a clay roofing, wall and floor tiles producer. It owns two state-of-the-art
production facilities in Olavarría, 330 kilometres southwest of Buenos Aires and a greenfield manufacturing facility in Cordoba. Cormela produces clay block at a facility in Campana, 60 kilometres from Buenos Aires. Ladrillos Olavarria
(LOSA), acquired in 2013, produces clay blocks and floor tiles from a plant located in Olavarría. Superglass (Argentina) and Vidrios Dell Orto (Chile) fabricate tempered, laminated and insulated glass. Comercial Duomo is a specialised
construction products retailer and wholesaler in Chile.   Products and Services - Locations   Architectural Concrete Canada, United States   Clay Argentina, United States   Precast Concrete, Pipe and Prestress Products Canada, United States   Glass Fabrication Argentina, Canada, Chile, United States   Glazing Systems Canada, United States   Concrete Accessories United States   Fencing Products Mexico, United States






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Americas Distribution Americas Distribution strategy is focussed on being the leading supplier to contractors of Exterior Products such as roofing and siding. We also apply this
successful distribution model to Interior Products such as ceilings and walls. Demand in the Exterior Products business is largely influenced by
residential and commercial replacement activity with the key products having an average lifespan of 25 to 30 years. Demand for Interior Products is driven
by the new residential, multi-family and commercial construction markets. Through CRHs commitment to continuous business improvement, we employ
state-of-the-art IT systems, disciplined and focussed cash and asset management, and well-established procurement and commercial systems which support supply chain optimisation and enable us to provide superior customer service. Americas Distribution operates in 31 states, and growth opportunities include investment in new and existing markets, in complementary private label and
energy-saving product offerings, and in other attractive building materials distribution segments that service professional dealer networks. The Division
employs approximately 3,800 people at 198 locations. Americas Distribution, trading as Allied Building Products (Allied), is a large
distributor in the roofing, siding and interior products segments in the United States. Allieds Exterior Products segment distributes both commercial and residential roofing, siding and related products and accounts for approximately 60% of
annualised Distribution sales. Allieds Interior Products segment distributes primarily to specialised contractors who are involved in new residential, multi-family and commercial construction.   Products and Services - Locations   Exterior Products   United States   Interior Products United States


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China and India Equity Accounted Investments  China Market
conditions in China remained challenging during 2014 as government policies to rebalance the economy towards a more sustainable growth model impacted on industrial and real estate activity. This resulted in a slowdown which created an unfavourable
short-term environment for the construction sector. Profitability at our 26% associate, Yatai Building Materials, which is a market leader in Northeast China with a capacity of 32 million tonnes of cement, was affected by lower volumes and
selling prices; partially offset by improved operational efficiencies and reduced costs. India CRH has a cement capacity of 8 million tonnes across three locations in Southern India, where it operates through a 50% joint venture; My Home Industries
Limited (MHIL). The regional market has a cement consumption of 75 million tonnes and MHIL is the market leader in the southern states of Andhra Pradesh and Telangana.
 In 2014, MHIL posted a 25% increase in volumes following the acquisition of Sree Jayajothi Cements Limited in
late 2013 and has also made significant gains in adjoining states. Prices were under pressure in the first half due to poor demand, but improved later in the year. Volume growth and acquisition synergies resulted in higher trading profit in 2014. Outlook In China trading conditions looking forward are
expected to recover as the countrys underlying urbanisation trends drive investment in infrastructure and property. Business performance will be further helped by stricter government measures to reduce overcapacity combined with internal
commercial and operational excellence initiatives. Demand for cement in India is expected to show strong growth of over 8% with the government providing a
boost to public infrastructure spending and various housing projects in both urban and rural areas.
 Products and Services - Locations   Cement China, India   Aggregates China, India   Readymixed Concrete China, India   Precast Concrete China   Construction Accessories China    Pictured outside the My Home Industries (MHIL) office, in Hyderabad, India, is the Hyderabad Metro Rail, a rapid transit system currently under
construction. To date, MHIL has supplied over 19,000 tonnes of cement to the project which is expected to be completed by July 2017.
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Mineral Reserves  Activities with Reserves Backing1Property acreage(hectares)2









Percentage of mineral reservesby rock typePhysicalLocation

Number ofquarries/pits




Owned


Leased


Proven &probablereserves3


Years todepletion4


Hardrock


Sand &gravel


Other


2014Annualisedextraction5Europe HeavysideCement

Ireland


2





249



-



217



133



100%



-



-



2.0Poland


2





293



-



185



49



93%



6%



1%



4.0Spain


1





32



-



86



602



100%



-



-



0.2Switzerland


3





165



6



26



17



92%



-



8%



1.6Ukraine


8





871



-



164



62



98%



-



2%



3.0Aggregates

Finland


157





685



399



190



15



70%



30%



-



11.6Ireland


128





5,091



70



897



85



84%



16%



-



10.8Poland


10





466



-



182



20



70%



30%



-



8.5Spain


11





172



184



98



43



99%



1%



-



2.3Other


40





287



526



173



22



74%



26%



-



7.7Lime

Ireland, Poland


2





105



-



46



46



100%



-



-



0.8Clay6

UK, Poland


51





2,793



189



109



49



-



5%



95%



2.4Subtotals




415





11,209



1,374



2,373







82%



13%



5%Americas MaterialsAggregates

East


274





24,793



5,095



9,181



125



87%



13%



-



77.3West


469





20,651



16,067



4,042



76



44%



56%



-



58.5Subtotals




743





45,444



21,162



13,223







74%



26%



-Americas ProductsClay6

United States


25





1,640



308



76



59



-



-



100%



1.6Group totals




1,183





58,293



22,844



15,672







75%



24%



1% 1     The disclosures made in this category refer to those facilities which are engaged in on-site processing of
reserves in the various forms.2     1 hectare equals approximately 2.47 acres.3     Where reserves are leased, the data presented above is restricted to include only that material which can be
produced over the life of the contractual commitment inherent in the lease; the totals shown pertain only to amounts which are proven and probable. All of the proven and probable reserves are permitted and are quoted in millions of
tonnes.4     Years to depletion is based on the average of the most recent three years annualised
production.5     Annualised extraction is quoted in millions of tonnes.6     Includes 104 million tonnes of proven and probable reserves in
relation to businesses classified as held for sale. See further details in note 4 to the Consolidated Financial Statements.  The Groups reserves for the production of primary building materials (which encompass cement, lime,
aggregates (stone, sand and gravel), clay products, asphalt, readymixed concrete and concrete products) fall into a variety of categories spanning a wide number of rock types and geological classifications  see the table above setting out the
activities with reserves backing. Reserve estimates are generally prepared by third-party experts (i.e. geologists or engineers) prior to acquisition; this
procedure
 is a critical component in the Groups due diligence process in connection with any acquisition. Subsequent
to acquisition, estimates are typically updated by company engineers and/or geologists and are reviewed annually by corporate and/or divisional staff. However, where deemed appropriate by management, in the context of large or strategically
important deposits, the services of third-party consultant geologists and/or engineers may be employed to validate reserves quantities outside of the aforementioned due diligence framework on an ongoing basis. The Group has not






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employed third-parties to review reserves over the three-year period ending 31 December 2014 other than in
business combination activities and specific instances where such review was warranted. Reserve estimates are subject to annual review by each of the
relevant operating entities across the Group. The estimation process distinguishes between owned and leased reserves segregated into permitted and unpermitted as appropriate and includes only those permitted reserves which are proven and probable.
The term permitted reserves refers to those tonnages which can currently be mined without any environmental or legal constraints. Permitted owned reserve estimates are based on estimated recoverable tonnes whilst permitted leased reserve
estimates are based on estimated total recoverable tonnes which may be extracted over the term of the lease contract.
 Proven and probable reserve estimates are based on recoverable tonnes only and are thus stated net of estimated
production losses and other matters factored into the computation (e.g. required slopes/benches). In order for reserves to qualify for inclusion in the proven and probable category, the following conditions must be satisfied:  

the reserves must be homogeneous deposits based on drill data and/or local geology; and  

the deposits must be located on owned land or on land subject to long-term lease. None of CRHs
mineral-bearing properties is individually material to the Group.
    Property, Plants and Equipment  At 6 March 2015, CRH had a total of 2,380 building materials production locations and 857 Merchanting and
DIY locations. 1,461 locations are leased, with the remaining 1,776 locations held on a freehold basis. The most significant subsidiary locations are the
cement facilities in Ireland, Finland, Poland, Switzerland, Ukraine and Spain. The capacity for these locations is set out in the table to the right. Further details on locations and products manufactured are provided in the Business Operations
sections on pages 14 to 25. None of CRHs individual properties is of material significance to the Group. CRH believes that all the facilities are in
good condition, adequate for their purpose and suitably utilised according to the individual nature and requirements of the relevant operations. CRH has a continuing programme of improvements and replacements to properties when considered
appropriate to meet the needs of the individual operations. Further information in relation to the Groups accounting policy and process governing any impairment of property, plant and equipment is given on page 141 and in note 13 to the
Consolidated Financial Statements on page 158.
 Significant Locations  Clinker CapacitySubsidiary

Country


Numberof plants


Clinker Capacity(tonnes per hour)Irish Cement


Ireland



2



288Finnsementti


Finland



2



181Grupa Ożarów


Poland



1



342JURA-Holding


Switzerland



2



116OJSC Podilsky Cement


Ukraine



1



313Cementos Lemona


Spain



1



92
     Sources and Availability of
Raw Materials CRH generally owns or leases the real estate on which its main raw materials, namely aggregates and clay reserves, are found. CRH is a
significant purchaser of certain important materials or resources such as cement, liquid bitumen, steel, gas, fuel and other energy supplies, the cost of which can fluctuate significantly and consequently have an adverse impact on CRHs
business. CRH is not generally dependent on any one source for the supply of these materials or resources, other than in certain jurisdictions with regard to the supply of gas and electricity. Competitive markets generally exist in the jurisdictions
in which CRH operates for the supply of cement, bitumen, steel and fuel.
 Mine Safety Disclosures  The information concerning mine safety violations and other regulatory matters required
by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is included in Exhibit 99.1 to this Annual Report on Form 20-F.


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Development Review 2014  Total acquisition and investment activity for 2014 amounted to 188 million on a total of 21 bolt-on
transactions which will contribute annualised sales of approximately 182 million, of which 122 million has been reflected in our 2014 results. Our Heavyside operations in Europe acquired selected readymixed concrete and aggregates assets of Cemex Ireland (including 12 million tonnes of high
quality reserves) and a precast concrete business in Denmark. Our Europe Distribution business completed six acquisitions in the Benelux, France and Germany which added a total of nine branches to our network. Eight bolt-on acquisitions were completed by our Americas Materials Division in 2014 across the United States adding over 230 million tonnes of aggregates
reserves. Our Americas Products Division completed five transactions in the Precast, Architectural Products and Construction Accessories businesses. A
total of 16 divestments, together with asset disposals during the year, generated proceeds of 345 million. In Europe, the disposal of CRHs 50%
equity stake in Denizli Çimento, the Groups only involvement in the Turkish construction market, was the largest single divestment to complete in 2014, realising proceeds of 170 million. The Heavyside Division also disposed of a
number of readymixed concrete and concrete products businesses, while all three European Divisions realised proceeds from the disposal of surplus assets. As most of the divested entities had been equity-accounted by CRH, the impact of these
divestments on Group sales is not material. In the Americas, our Materials Division disposed of several non-core operations across the United States. The
Products Division sold five operations in the Precast, Architectural Products and Building Envelope businesses. Transactions amounting to a further
0.58 billion were signed in 2014. The disposal of the Groups clay and concrete businesses in the UK and the US closed in the first quarter of 2015. 2013 Total acquisition and investment activity for 2013 amounted to
720 million on a total of 28 bolt-on transactions. Eight transactions were completed by our Europe Heavyside operations, including the acquisition of Cementos Lemona in Spain as part of the asset swap in which we divested our 26% stake in
Corporacion Uniland. In September 2013 the Group became the leading cement producer in Ukraine with the acquisition of Mykolaiv Cement in the Lviv region. Two other transactions strengthened our aggregates position in Northern Ireland and expanded
our network of cement import facilities in Britain while an acquisition in Belgium established the Group as market leader in the prestressed hollowcore flooring segment. Three acquisitions in the Europe Distribution segment added 13 branches to our
network of builders merchants across the Benelux and France. Our joint venture business in India also strengthened its market position in Southern India with the acquisition of Sree Jayajothi Cements in August 2013.
 In the Americas, the Materials Division completed 10 bolt-on transactions across its operations in 2013, adding
457 million tonnes of strategically-located aggregates reserves, primarily in the Eastern region of the United States. Our Products business significantly expanded its presence in the high growth region of Western Canada with an acquisition
which complements the footprint of our existing North American architectural products business and forms a platform for further bolt-on opportunities. Three other acquisitions in the Products segment strengthened our local market positions. The
Distribution business completed three acquisitions adding eight locations to our network. Proceeds from divestments during 2013, including
144 million relating to the transfer of Uniland, amounted to 283 million. 2012 The 669 million of development activity during 2012 reflected CRHs long-term, value-based approach to developing the Groups balanced
portfolio. Excluding net deferred payments, total acquisition spend for 2012 amounted to 548 million on a total of 36 bolt-on transactions. Expenditure of 263 million in the first half of 2012 included 18 acquisition and
investment initiatives which strengthened our existing market positions and added valuable and well-located aggregates reserves. In the second half of 2012 the Group completed 18 transactions at a total cost of 404 million (285
million cash spend excluding deferred payments), with the largest transaction being a majority stake in Trap Rock Industries, an integrated aggregates and asphalt business in New Jersey. Total proceeds from completed disposals in 2012 amounted to
784 million. The major disposals were the divestment in May 2012 of our 49% stake in Portuguese cement producer Secil and the sale in April of our wholly-owned Magnetic Autocontrol business.






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The Environment and Government Regulations  The most important environmental government regulations relevant to CRH as a building materials company are those
environmental laws and regulations relevant to our extractive and production processes. In the European Union, operations are subject to national environmental laws and regulations, most of which now emanate from European Union Directives and
Regulations. In the United States, operations are subject to Federal and State environmental laws and regulations. In other jurisdictions, national environmental laws apply. Environmental Compliance Policy In order to comply with environmental
regulations, CRH has developed the following Group environmental policy, approved by the CRH Board and applied across all Group companies, which is to:  

comply, as a minimum, with all applicable environmental legislation and continuously improve our environmental stewardship, aiming all the time to meet or exceed industry best practice;  

ensure that our employees and contractors respect their environmental responsibilities;  

address proactively the challenges and opportunities of climate change;  

optimise our use of energy and all resources;  

promote environmentally driven product innovation and new business opportunities; and  

develop positive relationships and strive to be good neighbours in every community in which we operate. Achieving our environmental policy objectives at all our locations is a management imperative; this line responsibility continues right up to CRH Board level.
Daily responsibility for ensuring that the Groups environmental policy is effectively implemented lies with individual location managers, assisted by a network of Environmental Liaison Officers (ELOs). At each year-end, the ELOs
assist the Group sustainability team in carrying out a detailed assessment of Group environmental performance, which is reviewed by the CRH Board. Addressing
Climate Change CRH recognises that climate change is a major challenge facing humanity and is committed to playing its part in developing practical
solutions. CRH is a core member of the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD). The CSI is a voluntary initiative by the worlds major cement producers,
promoting greater sustainability in the cement industry. Having achieved its initial CO2 reduction
commitment three years ahead of target in 2012, CRH has now pledged a 25% reduction in specific net CO2 cement plant emissions by 2020, compared to 1990 levels. The Group is progressing towards
achieving this commitment, which covers a defined portfolio of Group cement
 plants, and is confident that its ongoing strategic programmes will deliver this commitment by the target date. Through its membership of the CSI of the WBCSD and regional industry associations including the European Cement Association (CEMBUREAU) and the European
Lime Association (EuLA) in Europe and the National Asphalt Pavement Association (NAPA) and the Portland Cement Association (PCA) in the United States, CRH is actively involved in global and regional discussions on the climate change agenda. Relevant
facilities in Europe operate within the EU Emission Trading Scheme for Greenhouse Gas emissions through actively implementing carbon reduction strategies. CRH has implemented capital expenditure programmes in its cement operations in Europe to reduce carbon emissions in the context of the European Union commitment
to reduce greenhouse gas emissions by 20% by 2020. The European Union is committed to increasing this target to 30% should an international agreement be concluded. In addition, the European Union is targeting reductions of 40% by 2030 and suggesting
further reductions for 2040 and 2050. Achieving such reductions would represent a significant extra constraint on cement operations in Europe. US Federal
and State laws are developing proactively to address carbon emissions. The Group will incur costs in monitoring and reporting emissions. Ultimately a cap and trade scheme may be implemented; depending on the scope of the legislation,
this could significantly impact asphalt operations in the United States. As of 6 March 2015, the Group is not aware of any schemes that would materially affect its US operations. Possible Environmental Liabilities At 6 March 2015 there were no
material pending legal proceedings relating to site remediation which are anticipated to have a material adverse effect on the financial position or results of operations or liquidity of the Group, nor have internal reviews revealed any situations
of likely material environmental liability to the Group. Governmental Policies The overall level of government capital expenditures and the allocation by state entities of available funds to different projects, as well as interest rate and
tax policies, directly affect the overall levels of construction activity. The terms and general availability of government permits required to conduct Group business also has an impact on the scope of Group operations. As a result such governmental
decisions and policies can have a significant impact on the operating results of the Group.


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Legal Proceedings  Group companies are parties to various legal proceedings, including some in which claims for damages have been
asserted against the companies. Having taken appropriate advice, we believe that the aggregate outcome of such proceedings will not have a material effect on the Groups financial condition, results of operations or liquidity. Details regarding the pending investigation by the Competition Commission in Switzerland involving CRH plcs Swiss subsidiaries BR Bauhandel AG,
Gétaz-Miauton SA and Regusci Reco SA are set out in note 32 to the Consolidated Financial Statements on page 185. In May 2012 the Group disposed of
its 49% investment in its Portuguese joint venture Secil to our former joint venture partner, Semapa (SGPS, S.A.), following the ruling of the Arbitral Tribunal in Paris that the exercise of a call option for the purchase of CRHs 49%
shareholding in Secil by Semapa was valid and both parties were therefore obligated to complete the sale and purchase of CRHs share in Secil. As disclosed in our previous Annual Reports, Semapa initiated legal proceedings in November 2011 to
appeal against the Tribunal ruling and these proceedings were dismissed by the Cour DAppel on 10 September 2013. On 12 February 2014, Semapa filed an appeal with the Cour de cassation and this appeal is ongoing. No provision has been
made in respect of these proceedings in the Consolidated Financial Statements.   Research and Development Research and development is not a significant focus of the Group. CRHs policy is to expense all research and development costs as they occur.   Employees The average number of
employees for the past three financial years is disclosed in note 5 to the Consolidated Financial Statements on page 152. No significant industrial disputes have occurred at any of CRHs factories or plants during the past five years. The Group
believes that relations with its employees and labour unions are satisfactory.






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Strategy Review  PageChief Executives Introduction


34CRH Strategic Report


37CRH Business Model


40Proposed Acquisition


44Sustainability and Governance


47Risk Factors


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Strategy Review1  Chief Executives
Introduction When I joined CRH in 1998, I quickly learned that a philosophy of business improvement is ingrained in the history of the Group.
At CRH, we seek to build better businesses each and every day. As the construction industry emerges from a tumultuous few years, our approach has never been more relevant and there is nowhere I would rather be at this moment in time than in this
Group, in this industry, at this point in the business cycle. 2014 was a year of good progress for CRH. We were able to use the underlying strength of our
business to capitalise on the recovering markets and deliver a return to profit and margin growth. This progress was made possible by the hard decisions
and hard work undertaken by the Board, management and staff of CRH over the course of the previous seven years since the onset of the global financial crisis. As a result of this, the Group ended 2014 in a position of real strength across our key
metrics  strategic, operational and financial. It is particularly pleasing to report that improvements in performance were achieved last year across
all of our Divisions, leading to a double-digit percentage increase in EBITDA (as defined)*. The year began well in Europe, aided by favourable
early-season weather conditions compared with the prolonged winter of the previous year. Conversely, first-half trading in the Americas was impacted by very severe weather conditions for a second consecutive year. However, strengthening economic
recovery in the United States drove construction activity as the year progressed and enabled our Americas businesses to perform strongly in the second half, when we began to see an easing of trends in Europe. Like-for-like sales were ahead by 5% in the first half of the year and rose by 3% in the second, resulting in a full-year increase of 4%. The US Dollar/euro
average exchange rate of 1.3290 (2013: 1.3281) was relatively unchanged from prior year. Overall sales of 18.9 billion were achieved, an increase of 5%. EBITDA (as defined)* for the year was 1.641 billion, up 11%.
 LOGO Throughout recent times, the Group has maintained its commitment to ongoing cost control, strong cash generation efficiency
and disciplined financial management. Further progress was achieved in these areas in 2014 including an additional 118 million of targeted cost savings delivered by year-end. The reorganisation of our European businesses was largely completed during the year and we now have an integrated heavyside materials and products organisation
that is providing synergies across our operating plant network in European markets. Development spend in 2014 was 0.19 billion on 21 transactions, a
lower spend than in previous years. During 2014 we completed a detailed review of our portfolio and commenced a multi-year divestment programme, of businesses which no longer meet our returns and growth criteria, or for which we believe CRH is no
longer the best long-term owner. We remain focussed on optimising our portfolio to meet our financial objectives and prioritising the allocation and reallocation of capital as we reset for growth and restore margins and returns to peak levels. Portfolio Management is now embedded in our business model as a core competency and a key enabler of value creation within the Group. The discipline of this
process encourages optimal capital efficiency and provides new opportunities for investment and acquisition, the drivers of value creation in our business. On 1 February 2015, the Group announced that it had entered into a binding commitment to acquire certain assets from Lafarge and Holcim for an enterprise
value of 6.5 billion. As noted by the Chairman in his review on pages 2 and 3 the transaction is subject to CRH obtaining shareholder approval and certain other conditions. Assuming these conditions are satisfied, we expect the
acquisition to complete in mid-2015. The acquisition involves a portfolio of quality assets with broad geographical and product spread. The businesses
represented by these assets have market leading positions and
   1
See cautionary statement regarding forward-looking statements on page 9. *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share
of equity accounted investments result after tax.






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cover a range of segments in the building
materials sector in both developed and emerging markets. On completion, the acquisition will strengthen our presence in important markets across North America, Western, Central and Eastern Europe in addition to providing new platforms for growth in
the Philippines and Brazil. Further details are set out on page 44 and in note 33 to the Consolidated Financial Statements. Acquiring these businesses
represents a compelling opportunity for the Group to employ our proven strategy in a transformative way. Our approach to value creation is straightforward  we deploy capital efficiently, to support vertically integrated businesses, which we
then improve with our unrelenting commitment to operational excellence. Through this systematic process, we create significant and sustainable shareholder value. We have followed this model successfully for decades and, we believe that this
acquisition will deliver enhanced opportunities to roll out our vertical integration and bolt-on acquisition models. Throughout the period of recession and
downturn in construction activity that followed the global financial crisis, the Group maintained strict financial discipline. This discipline has served us well and has positioned us strongly to avail of the opportunity to acquire these businesses
at an attractive valuation and at the right point of the business cycle. Upon completion, CRH will become the third largest building materials company in the world. Outlook for 2015 In the United States, the pace of GDP growth is
expected to pick up in 2015 and we believe that the fundamentals are in place for continued positive momentum in the economy. Demand in the residential construction market continues to expand, albeit at a more moderate rate, while recovery in the
non-residential market is starting to gather pace. While the infrastructure market remains broadly stable, there is upside potential due to the growing economy and increased state spending. In Europe, the general market environment continues to normalise across our main markets. The outlook for 2015 is somewhat mixed, particularly in the first half
for which the 2014 comparatives reflect the benefit of very benign weather conditions. In our generally stable markets in Western Europe we expect to see some improvement in overall demand in 2015, particularly in residential activity. While the
outlook in Ukraine remains very uncertain, we anticipate that demand will increase in Eastern Europe, driven primarily by an expected pick up in the roads programme in Poland towards the second half of the year. With the improvements expected in market conditions across our main geographies, together with easing commodity prices, the benefits of cost efficiencies and a
favourable foreign exchange translation effect, we expect 2015 to be a further year of progress. Albert Manifold, Chief Executive


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CRH Footprint  The Group has good balance across its operations in North America and Western Europe. Our heavyside building
materials operations give us exposure to new-build and also to infrastructure repair, maintenance and improvement (RMI) construction. Elsewhere, our lightside and distribution businesses are mainly exposed to residential and non-residential markets,
where we also have positions of scale, global brands and potential for growth. Our strategic priority in these mature markets is to develop our businesses
further through a dynamic allocation and reallocation of capital, investment in greenfield projects and
 in acquisitions which meet our criteria of achieving vertical integration, and which add to reserves and expand our regional and product positions. Elsewhere, in developing regions, such as Asia, our entry platforms tend to be in cement. Industrialisation, urbanisation and population growth are key drivers
in these markets and CRH targets businesses that have the potential to develop further downstream into integrated building materials businesses as construction markets become more sophisticated.
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Portfolio Review In
2014, in light of a vastly changed environment following the global financial crisis and recession of the previous seven years, CRH undertook a comprehensive review of its entire portfolio of businesses to determine which of those businesses offered
the most attractive returns and potential for growth in the emerging new cycle. Following this review, a multi-year divestment programme has been initiated for up to 1.5 billion - 2 billion of assets. Portfolio Management is now an
intrinsic part of the Groups strategy and value creation model, which is outlined in the next section.
 CRHs vision
is to be the leadingbuilding materialsbusiness in theworld
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At the core of theCRH mission is acommitment to
createvalue and deliverbest-in-class returnsfor all stakeholders,consistently andsustainably
 The CRH Business Model CRHs business model has played an instrumental role in the consistent delivery by the Group of industry leading return on invested capital through the
cycle. In the period 1970  2014, CRH has, in euro terms, delivered a formidable compound annual Total Shareholder Return (TSR) of 15.7%. At the heart
of this enduring performance is our long standing and relentless commitment to our value creation model, which is delivered by an international team of dedicated people. The five elements of the model are:  

A Balanced Portfolio  

A Unique Acquisition Model  

A Focus on Building Better Businesses  

Dynamic Portfolio Management  

Financial Strength
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Balanced Portfolio Building a balanced portfolio is a core constituent of our philosophy and a key determinant of value creation for CRH. The Group is a broad-based building
materials business that is diversified with many products, geographies and sector end-uses. We are a multi-product company and the breadth and depth of our product range differentiates our positioning relative to peers in the industry. Maintaining a balanced portfolio enables the Group to take advantage of differing demand cycles across our businesses. Diversification also opens up a greater
number of opportunities for acquisitions, while having vertically integrated businesses creates potential for synergies and operational leverage.
 Acquisition Model Each year, the Groups balanced portfolio grows, primarily by way of acquisition. For over four decades, CRH has successfully employed its unique
acquisition model with a focus on adding small to mid-sized companies that complement and add value to our existing portfolio. On occasion, larger and/or step-change acquisitions are made when the value proposition and strategic rationale are
compelling. Details of a proposed major acquisition in 2015 are set out on page 44 and in note 33 to the Consolidated Financial Statements. Many of our
core end markets in mature economies remain fragmented or relatively unconsolidated and will continue to offer growth opportunities via our proven acquisition model in the decades ahead. Our acquisition model for creating new value and growth platforms also offers considerable long-term potential in developing economies, in particular those in
Asia, where the Group is currently building select leading regional positions.
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Building Better Businesses  Building Better Businesses is a core CRH competency. With over 3,300 operating locations in 34 countries
worldwide, the potential for value creation is significant. Through the extraction of inherent value in newly acquired businesses, and a focus on
delivering organic performance improvement in existing businesses, our commitment to Building Better Businesses is a key component of the CRH value creation model. Every day we strive to make improvements. Attention to detail by our 76,000 strong team, together with the multiplier effect of businesses involving millions of
tonnes of aggregates, asphalt and cement, and millions of units of construction accessories and distribution stock keeping units, has a material and cumulative impact over time. By leveraging the scale of the Group, benefits accrue in the areas of procurement, merchandising, selling prices, category management, distribution and IT.
Through the sharing of knowledge, ongoing people development, optimisation of our networks, operational leverage and utilisation of the Groups
 financial strength, we can deliver greater value from these businesses. CRHs operations benefit
from an active philosophy of continuous improvement. The Group provides guidance, support, functional expertise and control in the areas of performance measurement, financial reporting, cash management, strategic planning, business development,
talent management, governance and compliance, risk management, sustainability, health & safety and environment. Portfolio Management Through the past number of very difficult years for the global construction industry, CRH has worked hard to position itself to maximise the opportunities
presented by the coming growth cycle. An objective of the ongoing Portfolio Management process is to create a narrower and deeper suite of businesses that
are positioned either by virtue of size, product mix, location or
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operational expertise to benefit most from improvements in demand activity and pricing in their respective
markets. The impact of Portfolio Management on value creation is twofold: capital will be continuously released from low growth areas and reallocated to
core businesses for growth, while balance sheet capacity will be enhanced to boost acquisition capabilities. Financial Strength Maintaining a position of financial strength is a cornerstone of the CRH business model and the Group adopts a rigorous commitment to financial discipline,
strong cash generation and retaining balance sheet capacity. Financial strength enables the Group to create value in two key ways: to provide the resources
to fund value enhancing investments and long-term growth; and to reduce the cost of capital which ultimately translates into higher margins and profitability.
 The combination of two key financial measures  robust cash generation and solid interest cover 
support the investment grade credit ratings CRH enjoys. These ratings enable the Group to gain access to multiple sources of funding. In recent times, our
financial discipline has enabled the Group to secure lower and more diversified long-term interest rates on our debt, which will reduce the Groups average interest rate from above 5% in 2012 to circa 3% from 2018 onwards. Financial strength is a fundamental tenet of the business and has given CRH the capacity to increase or maintain the dividend payment to shareholders in each of
the last 31 years.  The Shelly Companys Smith Concrete supplied and delivered 14,715 m3 of concrete and over 45,000 tonnes of aggregates to the Zanesville, Ohio, Genesis Healthcare 2014 expansion project. Smith Concretes 4-H-themed readymix truck promotes the largest youth
development organisation in the United States.
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Proposed Acquisition  Announced February 2015  Definitions:the following definitions apply throughout this Annual Report on Form-20-F, unless the
context otherwise requires: NewCo Group:the collection of newly incorporated or pre-existing subsidiaries of the Sellers which hold the
assets for sale pursuant to the proposed Acquisition. proposed Acquisition:the acquisition by CRH of the NewCo Group. Combined Group:the CRH Group and the NewCo Group. Sellers:Lafarge and Holcim. On 7 April 2014,
Lafarge S.A. and Holcim Ltd announced their intention to merge their businesses. In order to obtain the regulatory clearances necessary to complete the Merger, they agreed to divest certain of their businesses. The assets for sale are held by newly
incorporated or pre-existing subsidiaries of the Sellers, collectively referred to as the NewCo Group. As outlined in note 33 to the Consolidated Financial
Statements, CRH announced on 1 February 2015 that it had entered into a Binding Offer Letter and Philippines SPA dated 31 January 2015 in which it has made a binding irrevocable offer to acquire the NewCo Group for an enterprise value of 6.5
billion. The cash consideration will be paid in a combination of euro, Sterling and Canadian Dollars. The proposed Acquisition is subject to: (i) CRH
shareholder approval at an Extraordinary General Meeting to be held on 19 March 2015; (ii) the successful completion of the proposed merger of Lafarge and Holcim; and (iii) the completion of certain local reorganisations by Lafarge and Holcim in
advance of the proposed Acquisition. A Circular has been distributed to shareholders to seek their approval of the proposed Acquisition and is available on
the CRH website, www.crh.com1. Information on the NewCo Group The NewCo Group comprises a global portfolio of assets in the buildings materials industry. It is a global producer of cement, aggregates, ready-mix and related
construction activities across four regional platforms in North America, Western Europe, Central and Eastern Europe and Emerging Markets. In 2013 the NewCo Group produced 23mt of cement, 79mt of aggregates, 8mt of asphalt and 10m m3 of
ready-mix concrete. Approximately two-thirds of the NewCo Groups revenue is generated in the European region. Outside Europe, Canada is the largest country in terms of estimated revenue for 2014. The NewCo Group has market-leading positions and covers all segments of the building materials sector in developed, transition and emerging markets. It operates
24 integrated cement plants together with 10 grinding stations for a total capacity of approximately 36mt per annum. The NewCo Group has assets and approximately 15,000 employees across 11 countries:
 

Canada and the United States;  

Western Europe: the UK, Germany, France and La Réunion;  

Central and Eastern Europe: Slovakia, Serbia, Hungary and Romania; and  

Emerging Markets: the Philippines and Brazil. Reasons for the proposed Acquisition The NewCo Group represents high quality assets which are core strategic parts of both Lafarges and Holcims global portfolios. CRH believes the
proposed Acquisition provides a compelling strategic fit for the Group for a number of reasons including:  

The NewCo Group represents a geographically diversified portfolio with leading market positions and provides a strong strategic fit across four strong growth platforms.  

The NewCo Group is highly complementary to CRHs existing footprint and the NewCo Group integrates well with CRHs existing network in North America, across Europe and in Asia.  

The proposed Acquisition is being executed at the right time and at an attractive valuation and the cost of funds for the Group is at an all-time-low.  

The NewCo Group is expected to deliver attractive financial returns, with additional value expected from the Combined Group in annual synergies from cost savings and operational efficiency improvements with the
programme expected to be implemented in the first three years of ownership.  

CRH will launch procurement programmes across the NewCo Group leveraging the procurement systems and expertise of both CRH and the NewCo Group.  

The combination of technical services will improve operational performance. The integration of the NewCo Group into existing CRH structures in place in North America, Europe and Asia will allow for rationalisation of
administration and optimisation of manning levels.  

The proposed Acquisition provides the opportunity to re-allocate capital at attractive multiples in recovering regions. Balance sheet strength remains a key focus for the Group. CRH remains strongly committed to investment grade credit ratings. Following CRHs announcement
confirming discussions were taking place with Lafarge and Holcim and the announcement, on 2 February 2015, of the proposed Acquisition, Standard and Poors Ratings Services and Moodys Investors Service affirmed their pre-announcement
investment grade ratings and their outlooks remain stable. Fitch Ratings put CRHs pre-announcement ratings on Rating Watch Negative (changed from Negative Outlook).
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CRH has a strategy of active portfolio management which will continue post acquisition of the NewCo Group. CRH is
exploring options to involve partners for certain of the assets acquired to meet local regulatory requirements or our strategic objectives, though we have not entered into any such agreement concerning the assets of the NewCo Group as of 11 March
2015. Principal terms and conditions of the proposed Acquisition The CRH Group has (i) made a binding irrevocable offer to acquire the NewCo Group (excluding the Philippines business), and (ii) entered into the Philippines
SPA to acquire the Philippines business. Lafarge and Holcim may elect to accept the offer and have full discretion whether to do so. The offer will remain
open for acceptance until the earlier of (a) two weeks following the conclusion of the works council consultation process and (b) 31 August 2015. If the Sellers accept the offer, the proposed share purchase agreement to be entered into between the
parties will come into effect. This proposed agreement (the Global SPA) is conditional on:  

Approval of the proposed Acquisition by CRHs shareholders at the EGM to be convened for that purpose;  

Successful completion of the proposed merger of Lafarge and Holcim; and  

Completion of certain local reorganisations by Lafarge and Holcim in advance of the proposed Acquisition. The
long stop date for the Global SPA is the earlier of (a) three months following completion of the merger between Lafarge and Holcim and (b) 31 December 2015 but in any case no earlier than 31 August 2015. The Global SPA provides for the payment of a
termination fee by either side in certain circumstances as described in note 33 to the Consolidated Financial Statements. CRH has committed to the Sellers
to do all things necessary to obtain regulatory approvals required for certain parts of the NewCo Group. If certain approvals are not obtained by the long stop date, then the proposed Acquisition will proceed to completion in all jurisdictions other
than those where regulatory approval has not been obtained and a divestiture trustee will be appointed to sell the businesses in those jurisdictions. Any loss or profit on such sale will be for the account of CRH. The CRH Group has agreed to acquire the NewCo Group on a cash-free, debt-free basis, with normalised levels of working capital. The agreement contains customary
warranties, including compliance with law, antitrust, environmental matters, litigation, tax and material contracts. It also indemnifies the CRH Group against any pre-closing tax liabilities subject to certain exclusions and limitations.
 CRH has agreed that, for a period of not less than one year from closing of the agreement between the parties, it
will maintain NewCo Group employee benefits on at least as favourable terms to the current terms, to not close a plant in that period, and not to engage in any collective redundancy programme or mass lay-off. Where CRH disposes of any business within the NewCo Group within 18 months of closing of the agreement, it has agreed to share any profit on disposal equally
with Lafarge and Holcim. The Philippines SPA is a put and call options agreement dated 31 January 2015 between CRH International, CRH plc, Lafarge Holdings
(Philippines) Inc., Calumboyan Holdings, Inc., Southwestern Cement Ventures, Inc., and Round Royal Inc. for the sale and purchase of the Philippines business being sold in connection with the proposed merger of Lafarge and Holcim. It is conditional
on CRH entering into arrangements with a local partner in the Philippines so as to comply with the laws of the Philippines in relation to restrictions on foreign ownership of certain Philippine assets and if a local partner is not found on or before
15 August 2015, the assets will be sold with any profit on disposal split equally between CRH and the sellers under the Philippines SPA but any loss for the account of CRH. The Philippines SPA contains conditions to closing which are consistent with
the conditions in the Global SPA and is also conditional upon completion of the Global SPA. Financing CRH proposes to finance the proposed Acquisition through existing cash resources, new bank facilities and the proceeds of a placing of new Ordinary Shares in
CRH plc. The drawn amount of the loan facilities shall bear interest at the rate of EURIBOR plus a margin, which is subject to certain step-ups according to a time and credit ratings based schedule. The facilities consist of a 0.4 billion
tranche with a maturity date of 31 December 2015, a 1.5 billion tranche with a maturity date of 30 June 2016, and a 1.0 billion tranche with a maturity date of 30 June 2018. Further details of the placing and the loan facilities are set
out in note 33 to the Consolidated Financial Statements. Dividend policy of the Combined Group CRH has a strong dividend track record, being one of the few companies within the sector to have maintained its dividend throughout the downturn. Following
completion of the proposed Acquisition, the dividend will remain a key focus for CRH. In this regard, while each dividend decision is made based on current trading and expectations regarding future performance, the Board anticipates that the
proposed Acquisition will result in significant earnings accretion and enhanced cash generation for the Combined Group.


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Environment & Climate Change  With a global base, CRH recognises the part it can play in improving the sustainability of the built environment.
CRH is committed to the highest standards of environmental management and to addressing proactively the challenges and opportunities of climate change. The
Group implements programmes across its worldwide operations to promote energy and resource efficiency, achieve targeted air emission reductions, enhance biodiversity, restore worked-out quarries and, in addition, realise environmentally driven
product and process innovation and new business opportunities. In 2012, three years ahead of the target date, CRH achieved its commitment to reduce
specific net carbon dioxide (CO2) emissions from cement plants by 15% on 1990 levels. CRH is now on track to achieving its 2020 commitment to a 25% reduction in specific net CO2 cement plant emissions on 1990 levels.
 Further progress was made in 2014. CRH continued to increase sales of lower carbon products such as warm-mix
asphalt, which now accounts for approximately 40% of CRHs US asphalt sales. In Europe, CRH provides low carbon cement for sustainable construction and approximately one third of CRHs cement plant fuel requirements are met by alternative
fuels, generating cost benefits in addition to carbon savings. As well as being recyclable themselves, many CRH products incorporate significant quantities
of recycled and other alternative materials. In 2014, the Group used 19 million tonnes of externally sourced alternative materials to replace raw materials, including recycled asphalt pavement and shingles which together provide a fifth of
asphalt requirements in US operations.
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People & Community  CRH believes that continued sustainable business success is built on maintaining excellent relationships with all
stakeholders. The Group is committed to fostering respect in the workplace and to developing an inclusive workforce based on merit and ability. Good people
are at the heart of all successful organisations. It is a guiding Group philosophy to develop and nurture all employees, to provide training and skills learning, offering strong career paths and upskilling opportunities. The Group endorses human and labour rights and supports the principles set out in the articles of the United Nations Universal Declaration of Human Rights
and the International Labour Organisations Core Labour Principles. CRH operates a comprehensive Code of Business Conduct and has additionally implemented an Ethical Procurement Code and Supplier Code of Conduct.
 The building materials industry traditionally attracts more male than female employees. In 2014, 18% of
CRHs employees were female. At Board level, CRH has three female directors including the Finance Director. Following the Annual General Meeting 25% of the CRH Board will be female. CRH also recognises a wider responsibility beyond core business activities in the communities in which Group companies operate. It is Group policy to actively
support and engage with our neighbours. In 2014, Group companies hosted over 600 stakeholder engagement events. CRH assists local neighbourhood and
community initiatives, in addition to supporting programmes in education, environmental protection and job creation. For example, during 2014, CRHs US subsidiary, Oldcastle, continued in its national partnership with Habitat for Humanity and
also continues to support the Wildlife Habitat Council.
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Delivering Best-in-Class Governance  CRH is committed to adopting and maintaining best-in-class governance, which is a hallmark of successful
organisations and businesses. At CRH, our values based approach to building and running a global business places an emphasis on respect for the law and an unrelenting commitment to compliance with the highest standards of business ethics. CRH adopts an open and transparent environment in the workplace and we have developed an internal principle of conduct for all employees that there is
never a good reason to do the wrong thing. Within this environment, we also foster a speak up culture to empower and encourage participation among employees. CRHs Compliance & Ethics teams implement a Code of Business Conduct programme and work to ensure its
 success. The Code of Business Conduct sets out policies and guidelines, training, and monitoring and review mechanisms. In the current training cycle a further 32,000 employees participated in Code of Business Conduct training. A further 11,000 also undertook advanced instruction
on changing regulatory environments, anti-bribery rules, competition law and other relevant areas such as corruption and fraud. Further information is
provided in the Corporate Governance section of this report on page 106.
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Managing Risk Managing risk is an area of vital importance to CRH and the Group has adopted a formal Enterprise Risk Management (ERM) framework as a basis for assessing and
mitigating risks associated with our range of businesses and corporate decisions. The Group adopts the best international practice of incorporating the
three lines of defence structure into our corporate risk management: (i) local management, (ii) divisional and corporate oversight, and (iii) the internal audit function. The principal risks and uncertainties faced by the Group are outlined on pages 52 to 63 and are reported to the Audit Committee on a biannual basis.
 Performance Reporting CRH has formal structures in place to identify, evaluate and manage potential risks and opportunities in sustainability areas. Group performance in this
regard, together with the effectiveness of actions, is reviewed regularly by the Board of Directors. CRH is committed to reporting on the breadth of its sustainability performance in a comprehensive and transparent manner and to publishing
performance indicators and ambitions in key identified sustainability areas.  Oldcastle Precast provided Storm Capture®as a solution for the underground
stormwater detention system at the new administration building site at Quantico National Cemetery, in Virginia  a military cemetery for veterans of the United States Armed Forces.
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Risk Factors This section describes the principal risks and uncertainties that could affect the Groups (and if the proposed Acquisition (see page 44) is completed,
the Combined Groups) business. The risks and uncertainties listed below should be considered in connection with any forward-looking statements in this Form 20-F and the cautionary statements contained in Introduction and Performance
Measures  Forward-Looking Statements. The Risk Factors have been grouped to focus on key strategic risks and key financial and reporting risks. The definitions set out on page 44 apply throughout the Risk Factors that follow, unless the context otherwise requires.  Key Strategic Risk FactorsIndustry cyclicalityRisk Factor

DiscussionThe level of construction activity in local and national markets is inherently cyclical being influenced by a wide variety of factors including global and national economic circumstances, ongoing
austerity programmes in the developed world, governments ability to fund infrastructure projects, consumer sentiment and weather conditions. Financial performance may also be negatively impacted by unfavourable swings in fuel and other
commodity/raw material prices. Failure of the CRH Group and/or the Combined Group to respond on a timely basis and/or adequately to unfavourable events beyond the CRH Groups and/or the Combined Groups control will adversely affect
financial performance.

The CRH Groups operating and financial performance is, and the Combined Groups would be, influenced by general
economic conditions and the state of the residential, industrial and commercial and infrastructure construction markets in the countries in which it operates, particularly in Europe and North America. Closing of the proposed Acquisition will extend
or expand the geographic scope of the CRH Groups existing heavyside activities in France & La Reunion, Germany, the United Kingdom, Hungary, Serbia, Romania, Slovakia, the United States, Canada, Brazil and the Philippines.
 In general, economic uncertainty exacerbates negative trends in construction activity
leading to postponement in orders. Construction markets are inherently cyclical and are affected by many factors that are beyond the CRH Groups control, including:

the price of fuel and principal energy-related raw materials such as bitumen and steel (which accounted for approximately 9% of annual Group
sales revenues in 2014);

the performance of the national economies in the 34 countries in which the CRH Group operates (37 for the Combined Group);

monetary policies in the countries in which the CRH Group operates  for example, an increase in interest rates typically reduces the
volume of mortgage borrowings thus impacting residential construction activity;

the allocation of government funding for public infrastructure programmes, such as the development of highways in the United States under the
Moving Ahead for Progress in the 21st Century Act (MAP-21); and

the level of demand for construction materials and services, with sustained adverse weather conditions leading to potential disruptions or
curtailments in outdoor construction activity.While economic conditions appear to be improving in the United States, a prolongation of or further deterioration in economic
performance in Europe may result in further general reductions in construction activity in that area. Against this backdrop, the adequacy and timeliness of the actions taken by the CRH Groups management team are of critical importance in
maintaining financial performance at appropriate levels.Each of the above factors could have a material adverse effect on the CRH Groups and/or the Combined Groups operating results and the market price of CRH plcs Ordinary Shares.






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Political and economic uncertaintyRisk Factor

DiscussionAs an international business, the CRH Group operates, and the Combined Group would operate, in many
countries with differing, and in some cases potentially fast-changing economic, social and political conditions. These conditions could include political unrest, strikes, war and other forms of instability including natural disasters, epidemics,
widespread transmission of diseases and terrorist attacks. With particular reference to developing markets, changes in these conditions, or in the governmental or regulatory requirements in any of the countries in which the CRH Group operates, or in
which the Combined Group would operate, may adversely affect the business, results of operations, financial condition or
prospects of the CRH Group and/or the Combined Group thus leading to possible impairment of financial performance and/or
restrictions on future growth opportunities.

The adverse developments in eurozone economic performance in recent years, together with ongoing austerity programmes in various
countries in Europe, have contributed to heightened global uncertainty. These uncertainties include whether the euro will continue as a unit of currency. While various actions have been taken by central banks and other institutions to stabilise the
economic situation, the success of these actions cannot be guaranteed.The CRH Group currently operates mainly in Western Europe and North America as well as, to a lesser degree, in developing
countries/emerging markets in Eastern Europe, South America, China and India. The Combined Group would include a number of countries where the CRH Group does not currently have a significant presence, namely Serbia, Brazil and the Philippines. The
economies of these countries are at varying stages of socioeconomic and macroeconomic development which could give rise to a number of risks, uncertainties and challenges and could include the following:

changes in political, social or economic conditions;

trade protection measures and import or export licensing requirements;

potentially negative consequences from changes in tax laws;

labour practices and differing labour regulations;

procurement which contravenes ethical considerations;

unexpected changes in regulatory requirements;

state-imposed restrictions on repatriation of funds; and

the outbreak of armed conflict.With regard to Ukraine, where the CRH Group has significant business interests, the outlook remains uncertain and the implications for construction activity in 2015 and beyond are unclear.Commodity products and substitutionRisk Factor

DiscussionThe CRH Group faces, and the Combined Group would face, strong volume and price competition across its product lines. In addition, existing products may be replaced by substitute products which the
CRH Group and/or the Combined Group does not produce or distribute. Against this backdrop, if the CRH Group and/or the Combined Group fails to generate competitive advantage through differentiation and innovation across the value chain (for example,
through superior product quality, engendering customer loyalty or excellence in logistics), market share, and thus financial performance, may decline.

The competitive environment in which the CRH Group operates, and the Combined Group would operate, can be significantly impacted by general economic conditions in combination with local factors including the number of
competitors, the degree of utilisation of production capacity and the specifics of product demand. Across the multitude of largely local markets in which the CRH Group conducts business, and the Combined Group would conduct business, downward
pricing pressure is experienced from time to time, and the CRH Group and/or the Combined Group may not always be in a position to recover increased operating expenses (caused by factors such as increased fuel and raw material prices) through higher
sale prices.A number of the products sold by the CRH Group and/or the Combined Group (both those manufactured internally and those distributed) compete with other building products that do not feature in the existing product range.
Any significant shift in demand preference from the CRH Groups and/or the Combined Groups existing products to substitute products, which the CRH Group and/or the Combined Group does not produce or distribute, could adversely impact
market share and results of operations.


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Acquisition activityRisk Factor

DiscussionGrowth through acquisition is a key element of the CRH Groups strategy. The CRH Group and/or the Combined Group may not be able to continue to grow as contemplated in its business plan if it
is unable to identify attractive targets (including potential new platforms for growth), execute full and proper due diligence, raise funds on acceptable terms, complete such acquisition transactions, integrate the operations of the acquired
businesses and realise anticipated levels of profitability and cash flows. The CRH Group and/or the Combined Group may be liable for the past acts, omissions or liabilities of companies or businesses it has acquired, which may either be unforeseen
or greater than anticipated at the time of the relevant acquisition.

The CRH Groups acquisition strategy focuses on value-enhancing mid-sized acquisitions supplemented from time to time by larger strategic
acquisitions into new markets or new building products. Subject to the factors highlighted below, the CRH Board intends that this will continue to be the case following completion of the proposed Acquisition.The realisation of the CRH Groups and/or the Combined Groups acquisition strategy is dependent on the ability to identify and acquire suitable assets at appropriate prices thus satisfying the stringent cash flow and
return on investment criteria underpinning such activities. The CRH Group and/or the Combined Group may not be able to identify such companies, and, even if identified, may not be able to acquire them because of a variety of factors including the
outcome of due diligence processes, the ability to raise funds (as required) on acceptable terms, the need for competition authority approval in certain instances and competition for transactions from peers and other entities exploring acquisition
opportunities in the building materials sector. If the proposed Acquisition is not completed, other acquisitions may not be identified and the Placing proceeds may be used for other corporate purposes. The CRH Groups and/or the Combined
Groups ability to realise the expected benefits from acquisition activity depends, in large part, on its ability to integrate newly-acquired businesses in a timely and effective manner. Situations may arise where the CRH Group and/or the
Combined Group may be liable for the past acts or omissions or liabilities of companies acquired; for example, the potential environmental liabilities addressed under the Sustainability Risk Factor below. Even if the CRH Group
and/or the Combined Group is able to acquire suitable companies, it still may not be able to incorporate them successfully into the relevant legacy businesses and, accordingly, may be deprived of the expected benefits thus leading to potential
dissipation and diversion of management resources and constraints on financial performance. See also Risk Factors  Risks and Uncertainties Related to the Proposed Acquisition.Joint ventures and associatesRisk Factor

DiscussionThe CRH Group does not have, and the Combined Group would not have, a controlling interest in certain of the businesses (i.e. joint ventures and associates) in which it has invested and may invest.
The absence of a controlling interest gives rise to increased governance complexity and a need for proactive relationship management, which may restrict the CRH Groups and/or the Combined Groups ability to generate adequate returns and
to develop and grow these businesses.

Due to the absence of full control of joint ventures and associates, important decisions such as the approval of business plans and the timing and amount of cash distributions and capital expenditures, for example, may require the
consent of partners or may be approved without the CRH Groups consent.These limitations could impair the CRH Groups and/or the Combined Groups ability to manage joint ventures and associates effectively and/or realise the strategic goals for these businesses. In addition, improper
management or ineffective policies, procedures or controls for non-controlled entities could adversely affect the business, results of operations or financial condition of the relevant investment and, by corollary, the CRH Group and/or the Combined
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Human resourcesRisk Factor

DiscussionExisting processes to recruit, develop and retain talented individuals and promote their mobility may be inadequate thus giving rise to employee/management attrition and difficulties in succession
planning and potentially impeding the continued realisation of the core strategy of performance and growth. In addition, the CRH Group and/or the Combined Group is exposed to various risks associated with collective representation of employees in
certain jurisdictions. These risks could include strikes and increased wage demands with possible reputational consequences. The performance of the Combined Group would, amongst other things, be dependent on the retention and motivation of certain
key management currently employed within the entities the CRH Group is proposing to acquire.

The identification and subsequent assessment, management, development and deployment of talented individuals is of major importance in continuing to deliver on the CRH Groups and/or the Combined Groups core strategy of
performance and growth and in ensuring that succession planning objectives for key executive roles throughout its international operations are satisfied. Programmes designed to focus on performance management skills and leadership development may
not achieve their desired objectives.The maintenance of positive employee and trade/labour union relations is key to the successful operation of the CRH Group and/or the Combined Group. Some of the CRH Groups employees, and those employed in the NewCo Group, are
represented by trade/labour unions under various collective agreements. For unionised employees, the CRH Group and the individual entities within the NewCo Group may not be able to renegotiate satisfactorily the relevant collective agreements upon
expiration and may face tougher negotiations and higher wage demands than would be the case for non-unionised employees. In addition, existing labour agreements may not prevent a strike or work stoppage with any such activity creating reputational
risk and potentially having a material adverse effect on the results of operations and financial condition of the CRH Group and/or the Combined Group.Corporate communicationsRisk Factor

DiscussionAs a publicly-listed company, the CRH Group undertakes, and the Combined Group would undertake, regular communication with its stakeholders. Given that these communications may contain forward-looking
statements, which by their nature involve uncertainty, actual results and developments may differ from those communicated due to a variety of external and internal factors giving rise to reputational risk.

The CRH Group places, and the Combined Group would place, great emphasis on timely and relevant corporate communications with overall responsibility for these matters being vested in senior management at the Group Head Office
(largely the Chief Executive, the Finance Director, the Head of Investor Relations and the Group Director, Corporate Affairs) supported by engagement with highly experienced external advisors, where appropriate. The strategic, operational and
financial performance of the CRH Group and of its constituent entities, including following the proposed Acquisition, the NewCo Group, is reported to the Board on a monthly basis with all results announcements and other externally-issued
documentation (e.g. the Annual Report on Form 20-F) being discussed by the Board/Audit Committee prior to release.Cyber and information technologyRisk Factor

DiscussionAs a result of the proliferation of information technology in the world today, the CRH Group is, and the Combined Group would be, dependent on the employment of advanced information systems and is exposed to
risks of failure in the operation of these systems. Further, the CRH Group is, and the Combined Group would be, exposed to security threats to its digital infrastructure through cyber-crime which might lead to interference with production processes,
manipulation of financial data, the theft of private data or misrepresentation of information via digital media. In addition to potential irretrievability or corruption of critical data, the CRH Group and/or the Combined Group could suffer
reputational losses and incur significant financial costs in remediation. Such attacks are by their nature technologically sophisticated and may be difficult to detect and defend in a timely fashion.

The CRH Group attaches importance to addressing security and cyber threats to its digital infrastructure given the increasing sophistication and evolving nature of these threats. Such attacks may result in interference with
production software, corruption or theft of sensitive data, manipulation of financial data accessible through its digital infrastructure, or reputational losses as a result of misrepresentation via social media and other websites. While the CRH
Group has made a significant investment in upgrading its digital infrastructure and governance processes with the overall objective of further enhancing system security, there can be no assurance that future attacks will not be successful due to
their increasing sophistication and the difficulties in detecting and defending against them in a timely fashion.


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SustainabilityRisk Factor

DiscussionThe CRH Group is, and the Combined Group would be, subject to stringent and evolving laws, regulations, standards and best practices in the area of sustainability (comprising corporate governance,
environmental management and climate change (specifically capping of emissions), health and safety management and social performance) which may give rise to increased ongoing remediation and/or other compliance costs and may adversely affect the CRH
Groups and/or the Combined Groups business, results of operations, financial condition and/or prospects.

The CRH Group is, and the Combined Group would be, subject to a broad and increasingly stringent range of existing and evolving laws,
regulations, standards and best practices with respect to governance, the environment and health and safety measures in each of the jurisdictions in which it operates/would operate giving rise to significant compliance costs, potential legal
liability exposure and potential limitations on the development of its operations. These laws, regulations, standards and best practices relate to, amongst other things, climate change, noise, emissions to air, water and soil, the use and handling
of hazardous materials and waste disposal practices. Given the above, the risk of increased environmental and other compliance costs and unplanned capital expenditure is inherent in conducting business in the building materials sector and the impact
of future developments in these respects on the CRH Groups and/or the Combined Groups activities, products, operations, profitability and cash flow cannot be estimated; there can therefore be no assurance that material liabilities and
costs will not be incurred in the future or that material limitations on the development of its operations will not arise.Environmental and health and safety and other laws, regulations, standards and best practices may expose the CRH Group and/or the Combined
Group to the risk of substantial costs and liabilities, including liabilities associated with assets that have been sold or acquired and activities that have been discontinued. In addition, many of the CRH Groups manufacturing sites have a
history of industrial use and, while strict environmental operating standards are applied and extensive environmental due diligence is undertaken in acquisition activity, some soil and groundwater contamination has occurred in the past at a limited
number of sites. Although the associated remediation costs incurred to date have not been material, they may become more significant in the future. Despite the CRH Groups policy and efforts to comply with all applicable environmental and
health and safety laws, it may face increased remediation liabilities and additional legal proceedings concerning environmental and health and safety matters in the future. 
Based on information currently available, the CRH Group has budgeted capital and revenue expenditures for environmental improvement projects and has established
reserves for known environmental remediation liabilities that are probable and reasonably capable of estimation. These figures are not material in the context of the CRH Group. However, neither the CRH Group nor the Combined Group can predict
environmental and health and safety matters with certainty, and budgeted amounts and established reserves may not be adequate for all purposes. In addition, the development or discovery of new facts, events, circumstances or conditions, including
future decisions to close plants, which may trigger remediation liabilities, and other developments such as changes in laws or increasingly strict enforcement by governmental authorities, could result in increased costs and liabilities or prevent or
restrict some of the operations of the CRH Group and/or the Combined Group, which in turn could have a material adverse effect on the reputation, business, results of operations and overall financial condition of the CRH Group and/or the Combined
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Laws and regulationsRisk Factor

DiscussionThe CRH Group is, and the Combined Group would be, subject to many local and international laws and regulations, including those relating to competition law, corruption and fraud, across many
jurisdictions of operation and is/would be exposed to changes in those laws and regulations and to the outcome of any investigations conducted by governmental, international and other regulatory authorities, which may result in the imposition of
fines and/or sanctions for non-compliance, and may potentially inflict reputational damage.

The CRH Group is, and the Combined Group would be, subject to various statutes, regulations and laws applicable to businesses generally in the
countries and markets in which it operates/would operate. These include statutes, regulations and laws affecting land usage, zoning, labour and employment practices, competition, financial reporting, taxation, anti-bribery, anti-corruption,
governance and other matters. The CRH Group mandates that its employees comply with its Code of Business Conduct which stipulates best practices in relation to regulatory matters. Neither the CRH Group, nor the Combined Group, can guarantee that
their employees will at all times be successful in complying with all demands of regulatory agencies in a manner which will not materially adversely affect the business, results of operations, financial condition or prospects of the CRH Group and/or
the Combined Group.The CRH Group seeks to comply fully with legislation such as the Foreign Corrupt Practices Act in the United States and the Bribery Act in the United Kingdom and has put in place significant internal controls and compliance policies
and procedures. However, there can be no assurance that such established policies and procedures will afford adequate protection against fraudulent and/or corrupt activity and any such activity could have a material adverse effect on the CRH
Groups and/or the Combined Groups business, results of operations, financial condition or prospects.Key Financial and Reporting Risk FactorsFinancial instruments (interest rate and leverage, foreign currency, counterparty, credit ratings and liquidity)Risk Factor

DiscussionThe CRH Group uses, and the Combined Group would use, financial instruments throughout its businesses giving rise to interest rate and leverage, foreign currency, counterparty, credit rating and liquidity
risks. A significant portion of the cash generated by the CRH Group and/or the Combined Group from operational activity is currently/would be dedicated to the payment of principal and interest on indebtedness. In addition, the CRH Group has entered
into certain financing agreements containing restrictive covenants requiring it to maintain a certain minimum interest coverage ratio and a certain minimum net worth. A downgrade of the CRH Groups and/or the Combined Groups credit
ratings may give rise to increases in funding costs in respect of future debt and may impair the CRH Groups and/or the Combined Groups ability to raise funds on acceptable terms. In addition, against the backdrop of heightened
uncertainties in the eurozone, insolvency of the financial institutions with which the CRH Group and/or the Combined Group conducts business (or a downgrade in their credit ratings) may lead to losses in derivative assets and cash and cash
equivalents balances or render it more difficult either to utilise existing debt capacity or otherwise obtain financing for operations.

Interest rate and leverage risks:The CRH Groups exposures to changes in interest rates result from investing and borrowing
activities undertaken to manage liquidity and capital requirements and stem predominantly from long-term debt obligations. Borrowing costs are managed through employing a mix of fixed and floating rate debt and interest rate swaps, where
appropriate. As at 31 December 2014, the Group had outstanding net indebtedness of approximately 2.5 billion (2013: 3.0 billion). On Closing, the Combined Group will have significant outstanding indebtedness, which may impair its
operating and financial flexibility over the longer term and could adversely affect its business, results of operations and financial position. This high level of indebtedness could give rise to the Combined Group dedicating a substantial portion of
its cash flow to debt service thereby reducing the funds available in the longer term for working capital, capital expenditure, acquisitions, distributions to shareholders and other general corporate purposes and limiting its ability to borrow
additional funds and to respond to competitive pressures. In addition, the increased level of indebtedness as a result of the proposed Acquisition may give rise to a general increase in interest rates borne and there can be no assurance that the
Combined Group will not be adversely impacted by increases in borrowing costs in the future. 
For the year ended 31 December 2014, PBITDA/net interest (all as defined in the relevant agreements as discussed in note 23 to the Consolidated Financial
Statements), which is the CRH Groups principal financial covenant, was 7.0 times (2013: 6.3 times); we anticipate that, aside from the impact of once-off costs arising on acquisition, PBITDA/net interest cover will be largely unchanged as a
result of the proposed Acquisition. The prescribed minimum PBITDA/net interest cover ratio is 4.5 times and the prescribed minimum net worth is 5 billion. 
Foreign currency risks:If the euro, which is the CRH Groups reporting currency, weakens relative to the basket of foreign currencies in which net
debt is denominated (principally the US Dollar, Pound Sterling and the Swiss Franc), the net debt balance would increase; the converse would apply if the euro was to strengthen. The CRH Groups established policy to spread its net worth across
the currencies of its operations, with the objective of limiting its exposure to individual currencies and thus promoting consistency with geographical balance, may not be successful.


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Financial instruments (interest rate and leverage, foreign currency, counterparty, credit ratings and liquidity)  continued

Counterparty risks: Insolvency of the financial institutions with which the CRH Group and/or the Combined Group conducts business, or a downgrade in their credit ratings, may lead to losses in derivative assets and cash and
cash equivalents balances or render it more difficult either to utilise existing debt capacity or otherwise obtain financing for operations. The maximum exposure arising in the event of default on the part of the counterparty (including insolvency)
is the carrying amount of the relevant financial instrument.The CRH Group holds significant cash balances on deposit with a variety of highly-rated financial institutions (typically invested on a short-term basis) which, together with cash and cash equivalents at 31 December 2014, totalled
3.3 billion (2013: 2.5 billion). In addition to the above, the CRH Group enters into derivative transactions with a variety of highly-rated financial institutions giving rise to derivative assets and derivative liabilities; the relevant
balances as at 31 December 2014 were 102 million and 23 million respectively (2013: 80 million and 53 million respectively). The counterparty risks inherent in these exposures may give rise to losses in the event that the
relevant financial institutions suffer a ratings downgrade or become insolvent. In addition, certain of the CRH Groups activities (e.g. highway paving in the United States) give rise to significant amounts receivable from counterparties at the
balance sheet date; at year-end 2014, this balance was 0.5 billion (2013: 0.4 billion). In the current business environment, there is increased exposure to counterparty default, particularly as regards bad debts.Credit rating risks:A downgrade of the CRH Groups and/or the Combined Groups credit ratings may give rise to increases in funding costs in respect of future debt and may, among other concerns, impair its ability
to access debt markets or otherwise raise funds or enter into letters of credit, for example, on acceptable terms. Such a downgrade may result from factors specific to the CRH Group and/or the Combined Group, including as a result of the increased
indebtedness resulting from the proposed Acquisition, or from other factors such as general economic or sector-specific weakness or sovereign credit rating ceilings.Liquidity risks:The principal liquidity risks stem from the maturation of debt obligations and derivative transactions. The CRH Group aims to achieve flexibility in funding sources through a variety of means including (i)
maintaining cash and cash equivalents with a number of highly-rated counterparties; (ii) limiting the maturity of such balances; (iii) meeting the bulk of debt requirements through committed bank lines or other term financing; and (iv) having
surplus committed lines of credit. However, market or economic conditions may make it difficult at times to realise this objective.For additional information on the above risks see note 21 to the Consolidated Financial Statements. See also Risk Factors  Risks and Uncertainties Related to the Proposed Acquisition.






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Defined benefit pension schemes and related obligationsRisk Factor

DiscussionThe CRH Group, and various entities within the NewCo Group, operate a number of defined benefit pension
schemes and related obligations (e.g. termination indemnities and jubilee/long-term service benefits, which are accounted for as defined benefit) in certain of their operating jurisdictions.
 The assets and liabilities of defined benefit pension schemes may
exhibit significant period-on-period volatility attributable primarily to asset values, changes in bond yields/discount rates and anticipated longevity. In addition to the contributions required for the ongoing service of participating employees,
significant cash contributions may be required to remediate deficits applicable to past service. In addition, fluctuations in the accounting surplus/deficit may adversely impact credit metrics thus harming the CRH Groups and/or the Combined
Groups ability to raise funds.

The assumptions used in the recognition of pension assets, liabilities, income and expenses (including discount rates, rate of
increase in future compensation levels, mortality rates and healthcare cost trend rates) are updated based on market and economic conditions at the respective balance sheet date and for any relevant changes to the terms and conditions of the pension
and post-retirement plans. These assumptions can be affected by (i) for the discount rate, changes in the rates of return on high-quality fixed income investments; (ii) for future compensation levels, future labour market conditions and anticipated
inflation; (iii) for mortality rates, changes in the relevant actuarial funding valuations or changes in best practice; and (iv) for healthcare cost trend rates, the rate of medical cost inflation in the relevant regions. The weighted average
actuarial assumptions used and sensitivity analysis in relation to the significant assumptions employed in the determination of pension and other post-retirement liabilities are disclosed on pages 176 and 178. A prolonged period of financial market
instability would have an adverse impact on the valuations of pension scheme assets.  In
addition, a number of the defined benefit pension schemes in operation throughout the CRH Group have reported material funding deficits thus necessitating remediation either in accordance with legislative requirements or as agreed with the relevant
regulators. These obligations are reflected in the contracted payments disclosure on page 69. The extent of such contributions may be exacerbated over time as a result of a prolonged period of instability in worldwide financial
markets.Adequacy of insurance arrangements and related counterparty exposuresRisk Factor

DiscussionThe building materials sector is subject to a wide range of operating risks and hazards, not all of which can be covered, adequately or at all, by insurance; these risks and hazards would include
climatic conditions such as floods and hurricanes/cyclones, seismic activity, technical failures, interruptions to power supplies, industrial accidents and disputes, environmental hazards, fire and crime. In its worldwide insurance programme, into
which the NewCo Group would be assimilated, the CRH Group provides coverage for its operations at a level believed to be commensurate with the associated risks. In the event of failure of one or more of its insurance counterparties, the CRH Group
and/or the Combined Group could be impacted by losses where recovery from such counterparties is not possible.

Insurance protection is maintained with leading, highly-rated international insurers with appropriate risk retention by
wholly-owned insurance companies (captive insurers) and by insured entities in the context of the deductibles/excesses borne. The coverage includes property damage and business interruption, public and products liability/general liability,
employers liability/workmens compensation, environmental impairment liability, automobile liability and directors and officers liability. Adequate coverage at reasonable rates is not always commercially available to cover all
potential risks and no assurance can be given that the insurance arrangements in place would be sufficient to cover all losses or liabilities to which the CRH Group and/or the Combined Group might be exposed. The occurrence of a significant adverse
event not covered, or only partially covered, by insurance could have a material adverse impact on the business, results of operations, financial condition or prospects of the CRH Group and/or the Combined Group.
 As at 31 December 2014, the total insurance provision, which is subject to periodic
actuarial valuation and is discounted, amounted to 208 million (2013: 181 million); a substantial proportion of this figure pertained to claims which are classified as incurred but not reported.


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Foreign currency translationRisk Factor

DiscussionThe CRH Groups activities are conducted primarily in the local currency of the country of operation resulting in low levels of foreign currency transactional risk. This situation is equally applicable to
the activities of the NewCo Group. The principal foreign exchange risks to which the Consolidated Financial Statements of the CRH Group are exposed pertain to adverse movements in reported results when translated into euro (which is the CRH
Groups, and would be the Combined Groups, reporting currency) together with declines in the euro value of net investments, which are denominated in a wide basket of currencies other than the euro. Closing of the proposed Acquisition will
increase exposure to a number of currencies, which have hitherto been immaterial, and will introduce exposures to some new currencies. The most significant currency exposures for the Combined Group will be the US Dollar, the Canadian Dollar, the
Swiss Franc, the Polish Zloty, the Pound Sterling and the Philippine Peso.

A significant proportion of the CRH Groups revenues, expenses, assets and liabilities are denominated in currencies other than the euro, principally US Dollars, Swiss Francs, Polish Zlotys and Pounds Sterling. From year to
year, adverse changes in the exchange rates used to translate these and other foreign currencies into euro have impacted and will continue to impact consolidated results and net worth. For additional information on the impact of foreign exchange
movements on the Consolidated Financial Statements for the CRH Group for the year ended 31 December 2014, see the Business Performance Review section commencing on page 66 and note 21 to the Consolidated Financial Statements.Goodwill impairmentRisk Factor

DiscussionSignificant under-performance in any of the CRH Groups and/or the Combined Groups major cash-generating units or the divestment of businesses in the future may give rise to a material write-down of
goodwill, which would have a substantial impact on income and equity.

An acquisition generates goodwill to the extent that the price paid exceeds the fair value of the net assets acquired. Under IFRS, goodwill and indefinite-lived intangible assets are not amortised but are subject to annual
impairment testing. Other intangible assets deemed separable from goodwill arising on acquisitions are amortised. A detailed discussion of the impairment testing process, the key assumptions used, the results of that testing and the related
sensitivity analysis is contained in note 14 to the Consolidated Financial Statements on pages 159 and 160.Whilst a goodwill impairment charge does not impact cash flow, a full write-down at 31 December 2014 would have resulted in a charge to income and a reduction in equity of 4.0 billion (2013: 3.7 billion).Inspections by the Public Company Accounting Oversight Board (PCAOB)Risk Factor

DiscussionOur auditors, like other independent registered public accounting firms operating in Ireland and a number of other European countries, are not currently permitted to be subject to inspection by the PCAOB, and
as such, investors are deprived of the benefits of PCAOB inspections.

As a public company, our auditors are required by United States law to undergo regular PCAOB inspections to assess their compliance with United States law and professional standards in connection with their audits of financial
statements filed with the SEC. Under Irish law, the PCAOB is currently unable to inspect and evaluate the audit work and quality control procedures of auditors in Ireland. Accordingly investors who rely on our auditors audit reports are
deprived of the benefits of PCAOB inspections of auditors.






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Risks and Uncertainties Related to the Proposed Acquisition This section documents the principal transaction-specific risks and uncertainties presented by the proposed Acquisition.  Closing of the proposed Acquisition is subject to the satisfaction (or waiver, where applicable) of various conditions precedentRisk Factor

DiscussionClosing of the proposed Acquisition is subject to the fulfilment of the following conditions: (i) the
approval by CRH shareholders of the Resolution to undertake the proposed Acquisition at an Extraordinary General Meeting of CRH plc; (ii) successful completion of the proposed merger of Lafarge and Holcim; and (iii) the completion of certain local
reorganisations by Lafarge and Holcim in advance of the proposed Acquisition.

There can be no guarantee that these conditions precedent will be met and that the proposed Acquisition will be completed as
proposed or at all.A failure to consummate the proposed Acquisition would give rise to a number of risks. The most material of these risks are the
following:

a decline in the market price of CRHs Ordinary Shares;

the incurrence of break fees as outlined on page 186;

the failure to meet strategic objectives; and

the incurrence of standby financing costs pending completion of the proposed Acquisition.Risks of executing the transaction could cause the market price of CRHs Ordinary Shares to declineRisk Factor

DiscussionThe market price of CRHs Ordinary Shares may decline as a result of the proposed Acquisition.

Among other factors, the following could cause the market price of CRHs Ordinary Shares to decline as a result of the
proposed Acquisition:

regulatory approvals may take longer than expected, may not be forthcoming or conditions may be imposed;

the integration of the acquired businesses is delayed or unsuccessful leading to the failure to meet strategic objectives;

the Combined Group does not achieve the anticipated benefits and synergies of the proposed Acquisition within the timescale envisaged by the CRH Board and management; and

the effect of the proposed Acquisition on CRHs consolidated financial results of operations falls short of the expectations of the CRH Board and management.


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The Combined Group may fail, or may take longer than currently anticipated, to realise the perceived benefits of the proposed Acquisition. In addition, the Combined Group may encounter difficulties in integrating the
acquired entities into pre-existing organisational structures.Risk Factor

DiscussionThere can be no assurance that the integration of the proposed Acquisition into the existing operations of the CRH Group will achieve the business growth opportunities, margin benefits, cost savings
and other synergies anticipated by the CRH Board and management. Should the anticipated benefits and synergies fail to materialise or the quantum thereof falls short of expectations, the assumptions used to justify the consideration payable may
prove to be incorrect and the results of operations and the financial condition of the Combined Group may be adversely affected.

The future prospects of the Combined Group will, in part, be dependent upon CRHs ability to integrate the acquired entities.
Some of the potential challenges in integration may not become known until after Closing. The key potential difficulties associated with integration of the NewCo Group could include the following:

the complexity and costs of transferring employees and assets and consolidating and integrating operations, infrastructure, processes,
procedures, systems, facilities, services and policies across different countries, jurisdictions, regulatory systems and cultures;

ability to maintain employee engagement and retain and incentivise key employees;

diversion of management time and resources away from the day-to-day operations of the CRH Group and disrupting business continuity;

redeploying resources in different areas of operations causing disruption of the business;

unforeseen legal, regulatory, contractual, labour and other issues arising from the proposed Acquisition together with ineffective mitigation thereof and limited recourse against the Sellers;

unanticipated capital expenditure requirements; and

the risk of the regulatory authorities requiring the CRH Group to sell assets below the valuation reflected in the purchase price.Difficulties experienced in the integration process could potentially lead to, amongst other matters, higher integration costs, lower benefits or cost savings, interruption of business operations and loss of customers,
suppliers or key personnel, which could have a material adverse effect on the business, results of operations, overall financial condition and prospects of the Combined Group.






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Financing for the proposed Acquisition (i) will increase the CRH Groups and/or the Combined Groups leverage and interest costs; (ii) may reduce operating
flexibility under existing financial covenants; and (iii) may adversely impact credit ratings and the ability to obtain additional financing for future opportunities

In order to finance the proposed Acquisition, the CRH Group plans to use existing cash resources and enter into new bank facilities (as well as using the proceeds of the placing by CRH of 74,039,915 new Ordinary Shares), which would
increase its leverage and interest costs, may reduce its operating flexibility under the financial covenants for its existing debt and may adversely impact the CRH Groups and/or the Combined Groups credit ratings and its ability to
obtain additional financing for future opportunities either in the medium or longer term. The incurrence of this additional indebtedness and the related increase in funding costs could result in downgrades of credit ratings potentially making future
financing more difficult to obtain due to limitations imposed by financial covenants and perceptions about the CRH Groups and/or the Combined Groups ability to meet its debt obligations.Transaction-related costs may exceed expectations

Should the proposed Acquisition proceed, CRH will incur costs in integrating the acquired entities and in delivering the synergies identified. The actual costs incurred may exceed current estimates and additional and unforeseen
expenses may arise in connection with the proposed Acquisition. In addition, CRH has incurred and will incur legal, accounting and transaction fees and other costs relating directly to the proposed Acquisition, the majority of which are payable
irrespective of Closing. Such costs could materially and adversely affect the realisation of synergies and the results of operations of the CRH Group and/or the Combined Group.Reliance on third party information

Information has been provided to CRH by the Sellers in respect of the NewCo Group. Any failure by the Sellers to disclose matters that CRH is unaware of may affect the significance or accuracy of any such information. If any such
undisclosed matters exist and are adverse to the NewCo Group, they may have an adverse effect on the Combined Groups future financial condition and results of operations and/or may result in additional costs or liabilities to the Combined
Group.


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Preferred Materials performed the paving and supplied 36,240 tonnes of asphalt on Boyette Road, a 2.2 mile project in
Lithia, Florida.


Business Performance ReviewPageCurrent Year Review


66

Finance Directors Introduction


66

Contractual Obligations


69

Operating Segment Reviews


70Prior Year Review


77


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Business
Performance Review1 Finance Directors Introduction 2014 was a year of growth for CRH, with improved performance in the first half driven by favourable weather in Europe, and the second half benefiting from
improved momentum in the United States. The Group continued to focus on cash generation finishing the year in a strong and flexible financial position. Net debt at year-end 2014 reduced by 0.5 billion compared to 2013. This was achieved with
strong cash inflows from operations, and proceeds of 0.35 billion from disposals, partly offset by spend of 0.62 billion on acquisitions, investments and capital expenditure, and dividend payments of 0.36 billion. Key Components of 2014 Performance Overall sales for 2014 were 5%
ahead of 2013, while organic sales from underlying operations were up 4%, reflecting strong favourable weather-impacted demand in Europe in the first half and increasing activity in the United States. In Europe, after the encouraging start to the year which saw like-for-like sales increase by 6% helped by favourable early-season weather, trading in the second
half was impacted by moderating trends across all three segments. Overall like-for-like sales for the year increased by 2%. EBITDA (as defined)* margin increased due to increased capacity utilisation, efficiency measures and cost saving actions. Against an improving market backdrop as the year progressed, like-for-like sales in the Americas were up 8% in the second half, compared with a first half
increase of 4%. In our Materials business, like-for-like sales improved throughout the year and finished 7% ahead. Our Products and Distribution businesses which were impacted by unfavourable weather patterns in the early part of the year, benefited
from improving demand in the second half particularly from new residential construction, and like-for-like sales were 5% ahead of 2013. With higher sales and good cost control, EBITDA (as defined)* margins improved in all three Americas segments. 1 See cautionary statement regarding forward-looking statements on page 9. *Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of
equity accounted investments result after tax.






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LOGO  During 2014, the US Dollar remained relatively stable at approximately 1.33 against the euro, however the
weakening of currencies like the Ukrainian Hryvnia and Argentine Peso, partly offset by the strengthening of Sterling, were the principal factors behind the exchange effects shown in the table below. The average and year-end 2014 exchange rates of
the major currencies impacting on the Group are set out on page 145. We continued to advance the significant cost-reduction initiatives which have been
progressively implemented since 2007 and which by year-end had generated cumulative annualised savings of over 2.5 billion. Total restructuring costs associated with these initiatives (which generated savings of 118 million in 2014)
amounted to 51 million in 2014 (2013: 71 million) and were once again heavily focussed on our European Divisions.
 Liquidity and Capital Resources  2014 compared with 2013 The comments that follow refer to the major components of the Groups cash flows as shown in the Consolidated Statement of Cash Flows on page 138. Throughout 2014 the Group continued to keep a focus on cash management, targeting in particular working capital and capital expenditure. Year-end working
capital of 2 billion represented just 10.6% of sales, an improvement compared with year-end 2013 (11.2%). This performance delivered a net positive movement (inflow) for the year of 35 million (2013: 77 million). CRH believes
that its current working capital is sufficient for the Groups present requirements. Strong control of spending on property, plant and equipment resulted in lower cash outflows of 435 million (2013: 497 million), with spend in
2014 representing 69% of depreciation (2013: 74%).
  Key
Components of 2014 Performance million

Revenue


EBITDA(as defined)*


Operatingprofit


Profit ondisposal


Financecosts (net)


Equityaccountedinvestments


Pre-taxprofit/(loss)2013


18,031



1,475



100



26



(297
)


(44
)


(215
)Exchange effects


(62
)


(11
)


(4
)


-



(1
)


5



-2013 at 2014 exchange rates


17,969



1,464



96



26



(298
)


(39
)


(215
)Incremental impact in 2014 of:- 2014 and 2013 acquisitions


237



16



4



-



-



(2
)


2- 2014 and 2013 divestments


(25
)


-



1



43



-



(1
)


43- Restructuring costs


-



20



20



-



-



-



20- Pension/CO2
gains


-



(23
)


(23
)


-



-



-



(23
)- Impairment charges


-



-



601



-



-



105



706Ongoing operations


731



164



218



8



10



(8
)


2282014


18,912



1,641



917



77



(288
)


55



761 CRHs share
of after-tax profits of joint ventures and associated undertakings * Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and
the Groups share of equity accounted investments result after tax.


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Business Performance Review| continued  Other major movements in net debt during the year comprised acquisition spend of 181 million on 21
transactions which was more than offset by divestment and disposal proceeds of 345 million. Cash dividend payments of 357 million and
proceeds of 22 million from exercise of share options were similar to last year. Year-end interest-bearing loans and borrowings increased by
0.3 billion to 5.9 billion (2013: 5.5 billion). Net debt of 2.5 billion at 31 December 2014 was 0.5 billion lower than year-end 2013. At year-end the stronger US Dollar (1.2141 versus the euro compared with
1.3791 at year-end 2013) was the main factor in the negative translation and mark-to-market impact of 181 million on net debt. The Group is in a
strong financial position. It is well funded and interest cover (EBITDA (as defined)*/Net Interest) of 6.7 times is significantly higher than the minimum requirements in the Group covenant agreements  further details are set out in note 23 to
the Consolidated Financial Statements. We successfully completed two bond issues during 2014: in July 600 million of 7-year euro bonds were
issued with a coupon of 1.75% and in September we completed our first Swiss Franc bond issuance for a further CHF330 million of 8-year bonds with a coupon of 1.375% . These were the lowest-ever coupons obtained by the Group and reflect CRHs
commitment to managing debt and maintaining an investment grade credit rating. The Group remains in a very strong financial position with total liquidity
at end 2014 of 5.9 billion comprising 3.3 billion of cash and cash equivalents on hand and 2.6 billion of committed undrawn facilities which do not mature until 2019. These cash balances were enough to meet all maturing debt
obligations for the next five years and the weighted average maturity of the remaining term debt was eight years. Significant Changes On 1 February 2015, CRH announced that it had made a binding irrevocable offer to acquire certain businesses and assets of Lafarge S.A.
(Lafarge) and Holcim Ltd (Holcim) for a total enterprise value of 6.5 billion. The proposed Acquisition is subject to: (i) CRH shareholder approval at an Extraordinary General Meeting to be held on 19 March 2015; (ii)
the successful completion of the proposed merger of Lafarge and Holcim; and (iii) the completion of certain local reorganisations by Lafarge and Holcim in advance of the acquisition.
 The Board believes that this acquisition, which arises from the decision by Lafarge and Holcim to divest certain
of their businesses and assets in order to obtain regulatory clearances necessary to complete their merger, represents a compelling strategic opportunity for CRH. The acquisition will be funded through a combination of 2 billion from existing
cash resources, the proceeds of 1.6 billion from the placing, which completed on 5 February 2015, of 74,039,915 Ordinary Shares in CRH plc (which rank pari passu in all respects with the existing Ordinary Shares including the right to
receive all future dividends declared or paid after the date of the placing) and by new debt facilities in the amount of 2.9 billion. Further details are set out on page 44 and in note 33 to the Consolidated Financial Statements. Other than the events above, no significant changes have occurred since the balance sheet date. Business Performance Reviews The sections on pages 70 to 76 outline
the scale of CRHs business in 2014, and provide a more detailed review of performance in each of CRHs six reporting segments. Quantitative and Qualitative Information about Market Risk The Group addresses the sensitivity of the Groups interest rate swaps and debt obligations to changes in interest rates in a sensitivity analysis
technique that measures the estimated impacts on the income statement and on equity of either an increase or decrease in market interest rates or a strengthening or weakening in the US Dollar against all other currencies, from the rates applicable
at 31 December 2014, for each class of financial instrument with all other variables remaining constant. The technique used measures the estimated impact on profit before tax and on total equity arising on net year-end floating rate debt and on
year-end equity, based on either an increase/decrease of 1% and 0.5% in floating interest rates or a 5% and 2.5% strengthening/weakening in the US$/ exchange rate. The US$/ rate has been selected for this sensitivity analysis given the
materiality of the Groups activities in the United States. This analysis, set out in note 21 to the Consolidated Financial Statements, is for illustrative purposes only as in practice interest and foreign exchange rates rarely change in
isolation. Quantitative and Qualitative information and sensitivity analysis of market risk is contained in notes 20 to 24 to the Consolidated Financial
Statements.
   
As disclosed in note 20 to the Consolidated Financial Statements, net debt comprises interest-bearing loans and borrowings, cash and cash equivalents, and derivative financial instruments.  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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Off-Balance Sheet Arrangements CRH does not have any off-balance sheet arrangements that have, or are reasonably likely to have a, current or future effect on CRHs financial condition,
changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
 
    Contractual Obligations An analysis of the maturity profile of debt, finance and operating leases, purchase obligations, deferred and contingent acquisition consideration and pension
scheme contribution commitments at 31 December 2014 is as follows:  Contractual
ObligationsPayments due by period

Totalm


Less than1 yearm


1-3 yearsm


3-5 yearsm


More than5 yearsmInterest-bearing loans and borrowings1


5,742



452



1,372



1,036



2,882Finance leases


13



2



4



3



4Estimated interest payments on contractually-committed debt
and finance leases2


1,149



253



364



227



305Deferred and contingent acquisition consideration


207



59



118



16



14Operating leases3


1,390



310



414



249



417Purchase obligations4


263



226



30



3



4Retirement benefit obligation commitments5


154



26



49



31



48Total


8,918



1,328



2,351



1,565



3,674 1      Of the 5.7 billion total gross debt, 0.1 billion is drawn on revolving facilities which may be
repaid and redrawn up to the date of maturity. The interest payments are estimated assuming these loans are repaid on facility maturity dates.2      These amounts have been estimated on the basis of the following assumptions: (i) no change in
variable interest rates; (ii) no change in exchange rates; (iii) that all debt is repaid as if it falls due from future cash generation; and (iv) none is refinanced by future debt issuance.3      Includes 54 million in relation to businesses classified as held for sale. See further details
in note 4 to the Consolidated Financial Statements.4      Includes contracted for capital expenditure. A summary of the Groups future purchase commitments as
at 31 December 2014 for capital expenditure are set out in note 13 to the Consolidated Financial Statements. These expenditures for replacement and new projects are in the ordinary course of business and will be financed from internal
resources.5      Represents the contracted payments related to our pension schemes in
the United Kingdom and Ireland. This includes 65 million in relation to schemes reclassified as held for sale. See further details in note 27 to the Consolidated Financial Statements.


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LOGO


Europe Heavyside  Results















Analysis
of change million

%
Change


2014


2013


Total
Change






Organic


Acquisitions


Divestments


Restructuring/
Impairment


Pension/
CO2 gains


ExchangeSales revenue


4%



3,929



3,786



143







105



51



-4



-



-



-9EBITDA (as defined)*


17%



380



326



54







47



2



1



22



-11



-7Operating profit


138%



151



-395



546







73



-2



1



489



-11



-4EBITDA (as defined)* margin



9.7%



8.6%Operating profit/sales



3.8%



-10.4%No pension restructuring gains were recorded
(2013: 12 million) Gains from CO2trading amounted to 9 million (2013: 8
million)




Restructuring costs amounted to
15 million (2013: 37 million) Impairment charges of 35 million were incurred (2013: 502 million)  The commentary below excludes the impact of impairment charges on operating profit. Excellent weather conditions, especially in the first quarter, provided a platform for a like-for-like sales increase of 7% in the first six months. With sales
marginally behind 2013 in the second half, overall like-for-like sales for the year increased by 3%. The EBITDA (as defined)* margin improved significantly due to increased capacity utilisation, efficiency measures, cost savings and relatively
stable input costs. Western Europe Sales increased by 4% in 2014
with double-digit growth in Ireland and the UK partly offset by declines in the Benelux and France. EBITDA (as defined)* increased significantly, mainly driven by excellent results in the UK. With the residential construction market remaining strong in Switzerland, our cement volumes were 8% ahead of 2013, although we continued to experience price
pressure. Prices in the downstream businesses were stable while volumes declined slightly. Overall operating profit declined. In the UK the residential market remained very strong both for our clay and concrete businesses, and sales and operating
profit increased during the year. There was a mixed outcome in the Benelux. While overall demand in the Netherlands was weak, resulting in lower volumes for readymixed concrete and landscaping products, cement volumes remained in line with the prior
year and in Belgium were better than in 2013. Both markets experienced significant price pressure and operating profit was lower than prior year. In Ireland an increase in residential activity in Dublin resulted in higher volumes, however prices
remained competitive due to overcapacity in the market. Overall operating profit was in line with 2013. Construction output in France continued to decline
and precast concrete volumes fell sharply resulting in lower operating profit. In Germany, volumes were higher in our concrete landscaping activity and prices remained under pressure; underlying operating profit was in line with 2013. Residential
activity in Denmark improved, and although pricing remained difficult due to the overcapacity in the market; operating profit increased. In Spain, the decline in national cement volumes moderated, while volumes for our cement business in the Basque
region were slightly ahead of 2013; overall operating profit was ahead of the 2013 outcome.
 Eastern Europe Our
operations benefited from favourable weather at the start of the year, with like-for-like sales up 9% in the first half. However, sales fell by 6% in the second half, resulting in a marginal increase in like-for-like sales for the year overall. The
slight improvement was achieved against a backdrop of political turmoil in Ukraine offset by improved demand in Poland. A relatively stable input cost environment, together with ongoing efficiency measures, resulted in an overall stable EBITDA (as
defined)* margin. Construction output in Poland increased by 5% in 2014, reflecting an early start to the season due to very mild weather in the first
quarter, stronger economic growth and a pick-up in the previously sluggish residential sector. National cement volumes for the year increased by 6%. Our readymixed concrete and landscaping volumes also increased. While prices for many of our
products remained under pressure, operating profit in Poland increased due to strong volumes and the benefit of previously implemented cost-reduction programmes. Despite the uncertain political backdrop in Ukraine and a 13% reduction in national
construction output, our like-for-like cement volumes were only down 1% on 2013 reflecting the concentration of our plants in western Ukraine and the ongoing commitment and dedication of our Ukrainian-based team. Due to better pricing, continued
focus on cost efficiencies and the full-year benefit of the acquisition of Mykolaiv, operating profit in local currency was ahead of 2013. Construction output in Finland remained relatively weak in 2014 mainly as a result of a continuing decline in
housing starts and a 2% drop in our cement volumes. Volumes and prices in readymixed concrete and aggregates were also under pressure and operating profit was below 2013. Sales and operating profit were ahead in 2014 in our concrete products
operations in Romania, Hungary and Slovakia as a result of improved activity. Outlook Western Europe: In the Netherlands we expect to see further improvements in the residential sector, which should have a positive impact in 2015, while
the non-residential and infrastructure sectors are expected to improve marginally. In Switzerland construction activity is expected to decline slightly but remain on a relatively high level with some improvement from larger infrastructure (tunnel)
projects, which are expected to
  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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commence in 2015. The outlook for construction output in Belgium is flat. Ireland should continue to grow with
overall construction activity mainly driven by the residential segment. France is expected to decline further especially in the infrastructure sector. The outlook for Germany and Denmark is positive, but showing only modest growth. Spain remains
challenging and we expect that 2014 was the bottom of the cycle, with moderate improvements anticipated in 2015.
 Eastern Europe: The growth in activity in Poland during 2014 is expected to continue to be led by a
pick-up in road programme activity in the second half of 2015. The outlook for Ukraine is uncertain; we expect construction activity to decline, and the local currency is expected to remain very weak. The outlook remains challenging for Finland,
although with the benefits of cost efficiencies we expect to improve margins. Further growth is expected in Romania, Hungary and Slovakia.
    Europe Lightside  Results




Analysis of
change million

%Change


2014


2013


TotalChange






Organic


Acquisitions


Restructuring/Impairment


Pensions


ExchangeSales revenue


7%



913



856



57







53



-



-



-



4EBITDA (as defined)*


32%



94



71



23







22



-



1



-1



1Operating profit


154%



71



28



43







31



-



14



-1



-1EBITDA (as defined)* margin



10.3%



8.3%Operating profit/sales



7.8%



3.3%Restructuring costs amounted to 5 million (2013: 6 million)No pension restructuring gains were recorded (2013: 1 million)







No impairment charges were recorded (2013: 13 million)  The commentary below excludes the impact of impairment charges on operating profit. 2014 saw good progress for Europe Lightside, with our portfolio of businesses benefiting from mild weather early in the year. Like-for-like sales were 6% ahead
of 2013, helped by good export levels to markets outside of Europe. Market demand in the Netherlands and France remained weak, while activity in Germany, Belgium and Switzerland was more resilient. The UK experienced robust growth, particularly in
residential construction. With the benefit of new product innovation, market share gains and cost reduction initiatives, the Division achieved substantial growth in both EBITDA (as defined)* and operating profit margins. Construction Accessories This division supplies a broad range of
connecting, fixing and anchor systems to the construction industry. Like-for-like sales grew by almost 6% in 2014, with a significant increase in operating profit. Engineered Accessories benefited from new product innovation and previous
restructuring initiatives. Our businesses in Germany and the UK delivered strong growth in operating profits, while Switzerland also performed well. The more commodity-focussed Building Site Accessories businesses had a mixed year, with
better performances in the UK, Belgium and Spain offset by rationalisation costs and more difficult trading conditions in Germany and France. Shutters &
Awnings Our operations in this division serve the attractive RMI and residential end-use markets, supplying sun protection, energy-
 saving, and outdoor living technologies. The Netherlands business benefited from the introduction of innovative
new products with strong margins. The UK business also delivered improved sales and margins. In Germany, strong demand for our awnings products was offset by a weaker performance in the shutters business due to lower exports to France and
restructuring measures. Overall, like-for-like sales and operating profits increased. Fencing & Cubis Our Permanent Fencing business again experienced difficult markets, especially in the Netherlands, although a number of initiatives contributed to
improved sales and operating profits. Despite challenging market conditions, results for Mobile Fencing were only slightly lower year-on-year, as a result of various operational excellence measures. Cubis, our composite access chamber
business, had another good year in which sales and operating profits increased due to strong UK demand and the introduction of a range of new products. Outlook While we are positive about the UK and Switzerland in 2015, we expect France to remain challenging, and are cautious about the outlook for Germany and
the Netherlands. Given Europe Lightsides robust business mix, we anticipate further organic growth in 2015, achieved through new products, maximising export opportunities and a continued RMI focus. This growth, combined with commercial and
operational excellence programmes, is expected to deliver further improvement in our operating profit in the year ahead.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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LOGO


Europe Distribution  Results







Analysis of
change million

%Change


2014


2013


TotalChange






Organic


Acquisitions


Restructuring/Impairment


Pensions


ExchangeSales revenue


2%



3,999



3,936



63







7



41



-



-



15EBITDA (as defined)*


2%



190



186



4







15



-



-



-11



-Operating profit


6%



112



106



6







14



-1



4



-11



-EBITDA (as defined)* margin



4.8%



4.7%Operating profit/sales



2.8%



2.7%No pension restructuring gains were recorded (2013: 11 million)




Restructuring costs amounted to 4 million (2013: 4 million)No impairment charges were recorded (2013: 4 million)  With the benefit of mild weather in the early months of 2014, first-half like-for-like sales increased by 4%.
Although the Netherlands saw some recovery in consumer confidence as the year progressed, financing conditions remained tight; our other key markets, particularly Switzerland, France and Germany, experienced more subdued demand and intense
competition. While sales in the third quarter declined by 4% on a like-for-like basis, by December activity had flattened to a level similar to last year, resulting in a full-year like-for-like sales outturn that was broadly similar to 2013. With
the benefit of procurement and other commercial excellence initiatives, and in spite of the absence in 2014 of the once-off pension gain of 11 million reported in 2013, overall operating profit and margin was ahead of last year. Six builders merchants acquisitions were completed in 2014 at a total cost of 27 million. In the Benelux, we acquired seven branches mainly to expand our
footprint in our growing builders merchants platform in Belgium. We also acquired two branches in northern France, strengthening our network in Normandy. Professional Builders Merchants Overall operating profit for our
wholly-owned professional builders merchants business, which operates 343 branches in six countries, was ahead of 2013. Mild first-quarter weather together with the incremental contribution from acquisitions offset weaker demand as the year
progressed, resulting in full-year sales in line with the previous year. Operating profit advanced mainly due to procurement initiatives in the Benelux and France and ERP optimisation in Austria. Sales in the Benelux ended slightly ahead of 2013 due
mainly to our recent Belgian acquisitions with operating profit well ahead as a result of procurement and cost savings initiatives. In Switzerland, sales finished slightly behind 2013, with the main driver for lower sales being a softening of local
residential markets in particular; operating profit was impacted by lower volumes and pricing pressure partly coming from the strong Swiss Franc. Our builders merchants activities in Germany made a strong start to the year in mild weather; this
moderated as the year progressed leaving full-year sales and operating profit slightly ahead of prior year. Sales in France were slightly ahead of 2013 due to acquisition contributions, while operating profit improved following a continued focus on
pricing, purchasing and cost control. Sales levels in Austria were slightly behind 2013, although operating profit was ahead due to measures taken to leverage the recently implemented ERP system.
 Sanitary, Heating and Plumbing (SHAP) Sales in our SHAP business, which operates 132 branches, were ahead of 2013 due to an organic improvement in our Belgian businesses which continue to perform
strongly. Sales in our German business moderated in the second half, finishing broadly in line with prior year. Due to the challenging market conditions in Switzerland, results were lower compared with 2013. Underlying operating profit for our SHAP
activities in 2014 was broadly in line with 2013 as organic improvement in Belgium was offset by weaker Swiss results. DIY Our wholly-owned DIY business operates 184 stores in the Netherlands, Germany and Belgium. Similar to our other businesses, DIY made a strong start to 2014 with
garden sales in particular benefiting from mild weather conditions. Despite improving consumer confidence and mild weather, competition remained intense in the Dutch market with high levels of price discounting featuring prominently during the year.
Overall sales ended broadly in line with 2013 in both the Netherlands and Belgium. Sales in our DIY business in Germany were higher than the previous year in part due to recent greenfield investments. Overall operating profit for the DIY business
was ahead of the prior year with weaker pricing in the Netherlands more than offset by cost savings initiatives, lower restructuring costs and a good performance in our German DIY business. Outlook While the Dutch economy continues to show progress, as seen
in improving consumer confidence indicators, underlying financing conditions remain somewhat constrained and therefore we expect measured progress in 2015. The German market outlook remains broadly positive despite some moderation in economic
growth. Markets in Austria are expected to be flat in 2015. In Switzerland, consistent with recent Euroconstruct indicators, residential markets in particular are expected to be subdued, so we remain cautious for 2015. Construction activity in
France is also expected to be constrained in the near term. Overall 2015 is likely to be another challenging year, but we expect improved operating profit due mainly to further initiatives in commercial and operational excellence programmes and our
continued focus on cost-reduction measures.
  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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Americas Materials  Results







Analysis of
change million

%Change


2014


2013


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


ExchangeSales revenue


7%



5,070



4,721



349







317



37



-2



-



-3EBITDA (as defined)*


9%



609



557



52







42



7



-



3



-Operating profit


57%



355



226



129







61



5



-



63



-EBITDA (as defined)* margin



12.0%



11.8%Operating profit/sales



7.0%



4.8%Restructuring costs amounted to 9 million (2013: 12 million)No impairment charges were recorded (2013: 60 million)  The commentary below excludes the impact of impairment charges on operating profit. After the early months of 2014 which were impacted by harsh winter weather, trading conditions improved as the year progressed, led by improved residential and
non-residential segments and stable infrastructure. Americas Materials delivered another year of growth, with like-for-like sales revenues growing 7% and overall EBITDA (as defined)* increasing 9% compared to 2013. Positive trends in pricing
continued for the third year in a row for aggregates and readymixed concrete, with asphalt pricing also improving in 2014. Americas Materials completed
eight acquisition transactions in 2014 at a total cost of 91 million, adding over 230 million tonnes of aggregates reserves, 2 operating quarries, 6 asphalt plants and 2 aggregates terminals, with annual production of
4.3 million tonnes of aggregates and 0.2 million tonnes of asphalt. In addition divestments during the year generated proceeds of 12 million. Energy and related costs: The price of bitumen, a key component of asphalt mix, increased by 3% in 2014 following a 4% decrease in 2013. Prices for
diesel and gasoline, important inputs to aggregates, readymixed concrete and paving operations, decreased by 2% and 3% respectively. The price of energy used at our asphalt plants, consisting of fuel oil, recycled oil, electricity and natural gas,
remained flat. Recycled asphalt and shingles accounted for approximately 22% of total asphalt requirements in 2014, lessening demand on virgin bitumen. Aggregates:Like-for-like volumes increased 6% from 2013 while total volumes including acquisitions increased 10%. Average prices increased by 2% on a
like-for-like basis and 1% overall compared with 2013. These price and volume increases, together with efficient cost control, resulted in improved margin for our aggregates business. Asphalt: Volumes increased 5% on a like-for-like basis and 6% overall compared to 2013. Volume increases together with pricing increases of 1%
contributed to an overall asphalt margin expansion. Readymixed Concrete: Like-for-like volumes increased 6% while total volumes including
acquisitions were up 7% compared with 2013. Average prices increased 4% on both a like-for-like and an overall basis, contributing to margin expansion for this business.
 Paving and Construction Services: With flat federal funding and pockets of increased state infrastructure
spending, like-for-like sales increased 2% and overall sales including acquisitions increased 3%. Bidding continued to be under pressure in a competitive environment. However, efficient cost controls enabled overall margin to improve by 0.5% in
2014. Regional Performance East The East region comprises operations in 23 states, the most important of which are Ohio, New York, Florida, Michigan, New Jersey, Pennsylvania and West
Virginia. After a harsh winter, the Northeast division was able to take advantage of favourable weather and improving economic conditions during the remainder of the year with operating profit growing strongly compared with 2013. Operating profit
was more stable in the Mid-Atlantic and Central divisions where very wet conditions hampered activity in the peak production months. The strong residential and non-residential markets in Florida contributed to higher volumes, better prices and
margin growth in the Southeast division. Overall operating profit for the East region was higher than in 2013, with overall volumes 7%, 6% and 5% ahead of prior year for aggregates, asphalt and readymixed concrete respectively. West The West region has operations in 21 states, the most important
of which are Utah, Texas, Washington, Iowa, Kansas and Colorado. All three divisions, Central West, Northwest, and Mountain West reported higher operating profit. Early season earnings improvements throughout the West continued into the autumn and
early winter, with modest price gains building on strong operating and overhead cost management across the product lines. Recovery in construction margins provided very positive year-on-year improvements from this line of business. Overall West
volumes increased 15%, 4% and 9% ahead of 2013 for aggregates, asphalt and readymixed concrete respectively.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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Americas Materials |continued Outlook  We expect that US GDP growth in 2015 will be similar to 2014 and that housing will continue to recover. We also
expect non-residential construction to show modest gains. Federal funding for infrastructure is expected to be flat in 2015. A more robust federal highway bill is being explored by Congress and has the support of the President, but if passed the
impact would most likely be evident in 2016 and beyond. State fiscal conditions are improving with certain states passing infrastructure funding measures. We expect 2015 volumes for aggregates and asphalt to show single-digit growth and readymixed concrete volumes to be up slightly
 more due to improving residential markets. Targeted price increases in all product lines, combined with cost controls and stable/improving energy markets are expected to lead to another year of
margin expansion in 2015.
    Americas Products  Results







Analysis of change million

%Change


2014


2013


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


ExchangeSales revenue


5%



3,225



3,068



157







169



75



-19



-



-68EBITDA (as defined)*


7%



263



246



17







24



6



-1



-7



-5Operating profit


113%



145



68



77







24



2



-



50



1EBITDA (as defined)* margin



8.2%



8.0%Operating profit/sales



4.5%



2.2%Restructuring costs amounted to 18 million (2013: 11 million)Impairment charges of 14 million were incurred (2013: 71 million)  The commentary below excludes the impact of impairment charges on operating profit. Our Products business in the Americas is located primarily in the United States but also in Canada, Mexico and South America. Construction activity in the
eastern and northern parts of North America was hampered by unseasonably wintry weather into May. Good weather in the second half of the year and an ongoing pick-up in US macroeconomic fundamentals, particularly stronger labour markets and consumer
confidence, led to improved trading results in the remainder of the year. Overall like-for-like sales increased by 6%. With improving market conditions, input cost pressures accelerated but were more than offset by the effects of improved
operational efficiencies and targeted price increases. Combined with the benefits of organic growth, cost reduction initiatives and contributions from acquisitions, Americas Products achieved a 7% increase in EBITDA (as defined)* and improved
margins. Five bolt-on acquisitions were completed in 2014 at a total spend of 60 million. The acquisition by our Architectural Products Group
(APG) of Hope Agri Products, a supplier of packaged mulches and soils, extended our footprint into the growing Texas market; while five divestments in 2014 generated net proceeds of 50 million.
 Architectural Products APG is a leading supplier of masonry and hardscape products, packaged lawn and garden products, clay brick and fencing solutions. In addition to
contractor-based new construction, the DIY and professional RMI segments are significant end-users. The business benefited from improving private residential and non-residential construction and increasing RMI spend. In general, activity was more
robust in the West and South, while trading in the Midwest, Northeast, and Eastern Canada started slowly during the first four months due to unseasonably bad weather. The strengthening housing market, together with product innovation and commercial
initiatives, drove gains across nearly all business segments resulting in a 7% increase in like-for-like sales compared with 2013. While our markets remain competitive, the combination of cost reduction measures and selected price improvements
broadly offset the impact of higher input costs. Overall, APG recorded strong improvements in operating profit and margin for the year. Precast The Precast group manufactures a broad range of value-added concrete and polymer-based products primarily for utility
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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infrastructure applications. In addition, the business is a leading manufacturer of accessories to the concrete
construction industry. While public infrastructure spend remained subdued, the business saw an otherwise improved market environment in 2014 and registered solid sales gains as growth initiatives continued to deliver. Operating profit increases were
achieved in most precast markets although selected areas were slow to recover from the weather-impacted start to the year. Our utility enclosures and construction accessories businesses also continued to grow and improve. Overall, like-for-like
sales rose by 5%, operating profit was marginally ahead and backlogs continued to improve. BuildingEnvelope® The BuildingEnvelope® group is North Americas leading supplier of architectural glass and
aluminium glazing systems that close the building envelope. New non-residential building activity, a key market segment for this business, experienced improved market conditions and healthy increases in demand in 2014. Sales growth was also driven
by ongoing initiatives to gain market share and differentiate the business through innovative product and technology offerings. Organic sales rose 2%, slightly less than the overall market, as our Engineered Glazing Systems (EGS)
division
 concentrated on completing existing major project work. The Architectural Glass and Storefront division continued to benefit from an improved pricing environment, resilient non-residential RMI
activity and a generally more favourable product mix. With a tight focus on cost control, product quality and improved processes, the business delivered operating profit and margin improvements. South America Our South American operations were negatively impacted
by challenging economic conditions and operating profit was lower than in 2013. Slow economic growth and high inflation led to lower volumes and higher operating costs in the Argentine clay products businesses. Our Chilean business also recorded
reduced profits due to soft demand in a very competitive market. Outlook Based on the improving macroeconomic backdrop, which will benefit both residential and non-residential construction demand, we expect further organic sales
growth in 2015. Combined with the impact of 2014 acquisitions and divestments, and the benefits of internal growth and cost initiatives, we expect to record improved operating profit and margin in 2015.
    Americas Distribution  Results







Analysis of change million

%Change


2014


2013


TotalChange






Organic


Acquisitions


Restructuring


ExchangeSales revenue


7%



1,776



1,664



112







80



33



-



-1EBITDA (as defined)*


18%



105



89



16







14



1



1



-Operating profit


24%



83



67



16







15



-



1



-EBITDA (as defined)* margin






5.9%



5.3%Operating profit/sales






4.7%



4.0%No restructuring costs were recorded (2013: 1 million)  Americas Distribution, trading as Allied Building Products (Allied), experienced improved performance
across its activities in 2014, leading to strong overall reported results. Both business divisions benefited from sales growth providing increased operating profit compared to 2013. Performance in our Exterior Products business was led by strong
demand in our Midwest (Chicago) and Mountain (Colorado) markets aided by early storm activity. The Northeast and West Coast markets experienced modest setbacks due to the completion of Hurricane Sandy rebuilding efforts in New York/New Jersey and
exceptionally dry and drought-like weather patterns experienced in California. The Interior Products business continued to show growth as both volumes and
pricing improved throughout the year. The strongest gains were experienced in our Atlantic markets, in part due to the full-year effect of our prior year acquisitions, and also the
 Southwest and West markets which were driven by multi-family construction. In 2014, Allied management
maintained its focus on improving employee safety, controlling variable costs, streamlining administrative procedures and eliminating redundant processes. The simplification of our business processes, along with the ongoing evolution of our
organisational structure and go-to-market strategies, is aimed at improving business integration and enhancing operating leverage, allowing for greater economies of scale as our business, and the overall market, grows. While no acquisitions were completed within the Americas Distribution group in 2014, we have continued to build on our organic greenfield and service centre
strategy by opening six bolt-on locations within some of our key existing markets. Our service
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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Americas Distribution |continued  centre model enables us to improve customer service, consolidate fixed costs and more efficiently leverage branch
assets. Progress continued to be made in 2014 to increase brand awareness of Tri-Built, our proprietary private label brand, as both sales and product offerings grew. The addition of our new service centre
locations combined with the continued growth of our Tri-Built private label brand and our commitment to developing our people continued to differentiate Allied in the marketplace. Exterior Products The Exterior Products business is largely comprised
of both commercial and residential roofing, siding and related products, and is the third largest distributor in the United States. Exterior Products demand is greatly influenced by residential and commercial replacement activity (75% of sales
volume is RMI-related). Commercial roofing experienced modest industry-wide growth while residential roofing shipments saw a slight decline leading to an overall flat market from 2013. As a result, product mix shifted more towards lower-margin
commercial products. Additionally, with no volume growth, markets across the industry remained very competitive leading to pricing pressure in all regions. In spite of flat market conditions and the pressures mentioned above, the Exterior Products
division reported modest sales growth and operating profit just slightly behind prior year. Interior Products The Interior Products business, which is the third largest specialty distributor in the United States, sells gypsum wallboard, acoustical ceiling systems and
related products to specialised contractors. The primary market is new construction including residential, multi-family and commercial, with limited exposure to the repair and remodel market. Performance in this business was strong in all markets
with increased volumes and prices of core products contributing to higher sales and improved operating margins. In addition, a more favourable mix toward higher-margin core products combined with efficiency initiatives implemented in recent years,
helped to drive improved sales and operating profit for 2014. Outlook The overall outlook for 2015 is encouraging as commercial and residential construction is expected to grow. While headwinds are expected to continue in our
Exterior Products business, as pricing pressures remain and only modest growth is expected, our Interior Products business continues to experience favourable markets, with another year of sales and profit growth expected. Overall, the expected
benefits of the six service centre additions in 2014 combined with our continued focus on efficiency and cost control should provide a year of further improvement in operating performance in 2015.






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Business Performance Review  Prior Year  Trading conditions in 2013 proved challenging, especially in the first half of the year, and the Group continued
to focus on cash generation finishing the year in a strong and flexible financial position. With increased cash inflows from operations and proceeds from disposals, net debt at year-end 2013 remained broadly in line with 2012 despite a total spend
of 1.2 billion on acquisitions, investments and capital expenditure and cash dividend payments which at 368 million were similar to 2012. While reported sales for 2013 were similar to 2012, organic sales from underlying operations fell by 2%, reflecting difficult market conditions in Europe and
poor weather across the Group in the first half. In Europe the decline in like-for-like sales moderated to less than 1% in the second half of 2013, a
significant improvement on the weather-impacted decline of 10% in the first half. This resulted in a full-year reduction of 5% in underlying European sales in 2013, which was partly offset by contributions from acquisitions to give a 3% overall
decline. Lower sales impacted EBITDA (as defined)* margin, which despite intense management focus and internal actions, fell in all European segments in response to competitive market pressures. Against an improving backdrop as 2013 progressed, like-for-like sales in the Americas were up 5% in the second half, compared with a first half which saw
organic volumes down by 1%. In our Materials business, which was impacted by unfavourable weather patterns in the early part of 2013, like-for-like sales were 3% lower than 2012; however, with good contributions from
 acquisitions overall US Dollar sales revenue was in line with 2012. Our Products and Distribution businesses continued to benefit from improving demand, particularly from new residential
construction, and like-for-like sales were 8% ahead of 2012. With higher sales and good cost control, EBITDA (as defined)* margins improved in all three Americas segments. Operating profit fell significantly from 2012, due principally to the non-cash impairment charge of 650 million taken largely as a result of the
comprehensive portfolio review in 2013. The initial phase of this review identified business units that would not meet our returns criteria, and an orderly disposal process is underway. The Europe segment accounted for the majority of the
write-down. The portfolio review also identified further impairments of 105 million in respect of equity accounted investments. During 2013 the
euro strengthened by more than 3% against the US Dollar, resulting in an adverse translation impact on the Groups results; this is the principal factor behind the exchange effects shown in the table below. We continued to advance the significant cost-reduction initiatives which have been progressively implemented since 2007 and which by year-end 2013 had generated
cumulative annualised savings of almost 2.4 billion. Total restructuring costs associated with these initiatives (which generated savings of 195 million in 2013) amounted to 71 million in 2013 (2012: 60 million) and
were once again heavily focussed in our European Divisions.
   Key
Components of 2013 Performance million

Revenue


EBITDA(as defined)*


Operatingprofit


Profit ondisposals


Financecosts (net)


Equityaccountedinvestments


Pre-taxprofit/(loss)2012


18,084



1,563



805



230



(305
)


(84
)


646Exchange effects


(404
)


(36
)


(19
)


(1
)


5



(2
)


(17
)2012 at 2013 exchange rates


17,680



1,527



786



229



(300
)


(86
)


629Incremental impact in 2013 of:- 2013 and 2012 acquisitions


672



73



43



-



(3
)


3



43- 2013 and 2012 divestments


(42
)


-



2



(191
)


(2
)


4



(187
)- Restructuring costs


-



(11
)


(11
)


-



-



-



(11
)- Pension/CO2 gains


-



(29
)


(29
)


-



-



-



(29
)- Impairment charges


-



-



(622
)


-



-



41



(581
)Ongoing operations


(279
)


(85
)


(69
)


(12
)


8



(6
)


(79
)2013


18,031



1,475



100



26



(297
)


(44
)


(215
)CRHs share
of after-tax profits of joint ventures and associated undertakings  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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Business Performance Review  Prior Year |continued  Liquidity and Capital Resources  2013 compared with 2012 The comments that follow refer to the major components of the Groups cash flows as shown in the Consolidated Statement of Cash Flows on page 138. Throughout 2013 the Group continued to keep a very sharp focus on cash management, targeting in particular working capital and capital expenditure. Year-end
2013 current working capital of 2.0 billion represented just 11.2% of sales, an improvement compared with year-end 2012 (11.5%). This performance delivered net inflows for 2013 of 77 million (2012: outflows of 58 million).
Strong control of spending on property, plant and equipment resulted in lower cash outflows of 497 million (2012: 544 million), with spend in 2013 representing 74% of depreciation (2012: 79%). Other major cash flow movements during 2013 comprised acquisition spend of 676 million on 28 transactions, including 144 million in
respect of the asset exchange in Spain which is also included in the total proceeds from disposals and investments of 266 million. Cash dividend
payments of 368 million and proceeds of 19 million from exercise of share options were very similar to 2012. Year-end 2013
interest-bearing loans and borrowings increased by 0.7 billion to 5.5 billion (2012: 4.8 billion). At year-end 2013, net debt of 2.97 million was just 64 million higher than year-end 2012. The weaker US
Dollar (1.3791 versus the euro at year-end 2013 compared with 1.3194 at year-end 2012) was the main factor in the positive translation and mark-to-market impact of 87 million on net debt. CRHs share price increased by 20% in 2013 to 18.30 at year-end; combined with the maintained dividend of 62.5c, shareholder returns were 24% in 2013
and resulted in net debt as a % of market capitalisation decreasing to 22% (2012: 26%). As disclosed in note 20 to the Consolidated
Financial Statements, net debt comprises interest-bearing loans and borrowings, cash and cash equivalents, and derivative financial instruments.






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##### Table of Contents

Europe Heavyside  2013  Results







Analysis of
change million

%Change


2013


2012


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


Pension/CO2gains


ExchangeSales revenue


-5%



3,786



3,972



-186







-258



+125



-8



-



-



-45EBITDA (as defined)*


-23%



326



426



-100







-61



+9



+1



-2



-41



-6EBITDA (as defined)* margin



8.6%



10.7%Operating profit


n/m



-395



187



582







-58



+1



+3



-483



-41



-4Pension restructuring gains amounted to 12 million (2012: 30 million)
Gains from CO2trading were 8 million (2012: 31 million)




Restructuring costs amounted to 37 million (2012: 35 million)Impairment charges of 502 million were incurred (2012: 21 million)  EBITDA (as defined)* above includes pension restructuring gains and gains from CO2 trading. Operating profit is also stated after impairment charges; the net 482 million adverse impact of these items has been excluded from the commentary that follows. Adverse weather in the first half of 2013, combined with significant overcapacity in very competitive markets, resulted in like-for-like sales for the year
overall being down by 7% versus 2012. Our cement operations experienced weak volumes in Poland, Finland and Benelux, in particular, combined with further, albeit more modest, declines in construction activity in Ireland. The UK market was the only
major market showing growth in 2013, benefiting from strong residential markets. However, our continued cost reduction and efficiency measures partly offset the impact of lower demand. Overall, EBITDA (as defined)* margin excluding pensions and CO2 gains was 8.1% compared with 9.2% in 2012. On the development front during 2013, we concluded an asset
swap in February in which we acquired Cementos Lemona in the Basque region in Spain in exchange for our 26% stake in Corporacion Uniland. In September 2013 we became the market leader in Ukraine through the acquisition of Mykolaiv Cement. We
completed two smaller transactions in 2013 strengthening our presence in Northern Ireland and expanding our network of cement import facilities in Britain. In addition, we acquired a manufacturer of pre-stressed hollow core elements in Belgium,
expanding and strengthening our position as market leader in Belgiums pre-stressed hollow core flooring segment. Western Europe Construction spend in Switzerland increased again in 2013 with the residential market remaining one of the major drivers of activity and infrastructure spend
continuing at good levels. With the benefit of mild weather in the fourth quarter of 2013, construction remained strong to the end of the year. Our cement volumes were 12% higher than 2012 benefiting both from increased infrastructure projects and
large individual projects. Aggregates and readymixed concrete volumes continued the slightly upward trend of recent years. Sales prices, particularly cement, saw some slippage in 2013 due to the continued strong Swiss Franc. Operating profit was
ahead of 2012. New residential markets in the UK experienced significant growth due to the governments Help to Buy scheme and industry brick volumes finished 9% ahead of 2012. Selling price increases were
 also achieved and, despite higher natural gas costs, operating profit was ahead of 2012. Our clay businesses in the Netherlands were impacted by weaker residential demand in very competitive
markets, with volumes and prices under pressure. In 2013, we decided to close part of our clay business in the Netherlands, contributing to the overall increase in restructuring charges compared with 2012. Operating results for our Clay business
overall were broadly in line with 2012. Our cement and readymixed concrete businesses in the Netherlands and Belgium were impacted by falling construction activity in 2013. Lower volumes, together with pricing pressure in very competitive markets,
resulted in lower operating profit in spite of the benefits from ongoing cost reduction programmes. Profitability in our Structural Concrete business in the Benelux was in line with 2012 with lower organic results offset by the contribution from the
acquisition during 2013. Our operations in Denmark, Germany and France all saw weaker activity levels in 2013. The decline in construction activity in Ireland moderated in 2013 and cement volumes were similar to 2012 levels. With a lower cost base,
operating losses declined. In Spain, while construction activity fell by a further 23% with declines across all sectors, our like-for-like results were in line with 2012 due to the benefit of previously-implemented cost reduction programmes. Trading
in our newly-acquired cement business Cementos Lemona was in line with expectations. Eastern Europe A pick-up in second-half construction activity in Poland was insufficient to offset the weather-impacted first half of 2013; national construction output fell
by an estimated 11% in 2013 and cement volumes fell 9%. The residential sector remained sluggish throughout 2013 with new starts down over 11%. Infrastructure activity picked up as the year progressed and the second half of 2013 saw the restart of a
number of stalled projects. Mild weather late in 2013 enabled construction to continue until year-end. Against the improving backdrop our second-half cement volumes increased by 8% compared with 2012, reducing the decline in our full-year 2013
volumes to 11%. Our aggregates and readymixed concrete volumes also declined year-on-year. Prices for all products remained under pressure in very competitive markets, and overall operating profit in Poland was lower than 2012. In Ukraine, while the
first half of 2013 was negatively impacted by the prolonged winter conditions, demand was much stronger in the second half
   *Defined as earnings before
interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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Europe Heavyside  Prior Year |continued  and national cement volumes for the year were down 3% compared with 2012. Our like-for-like volumes were 13%
ahead of 2012 in the second half of 2013, bringing our full-year volumes almost in line with 2012 (down 1%) and overall operating profit in Ukraine was broadly similar to 2012. In Finland, construction spend was down in 2013 mainly due to reduced residential activity. The government introduced two stimulus packages related mainly to
the residential and RMI sectors, but execution was slow. With increasing levels of public debt,
 spending on infrastructure was reduced and progress on a number of large projects was delayed. While our businesses delivered modest price increases in cement, aggregates and readymixed concrete,
cement and aggregates volumes were lower in 2013 and overall operating profit was below 2012. In South-Eastern Europe, our concrete and clay operations were negatively impacted by fragile markets and strong competition, with 2013 operating profit
and margins down versus 2012.
   Europe
Lightside  2013  Results







Analysis of
change million

%Change


2013


2012


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


Pensiongains


ExchangeSales revenue


-4%



856



888



-32







-30



+33



-28



-



-



-7EBITDA (as defined)*


-9%



71



78



-7







-7



+2



-1



-1



+1



-1EBITDA (as defined)*margin



8.3%



8.8%Operating profit


-43%



28



49



-21







-10



-



-1



-11



+1



-Pension restructuring gains amounted to
1 million (2012: nil)







Restructuring costs amounted to 6 million (2011: 5 million)Impairment charges of 13 million were incurred (2012: 3 million)  EBITDA (as defined)* above includes pension restructuring gains and operating profit is also stated after
impairment charges; the net 12 million adverse impact of these items has been excluded from the commentary that follows. Our Lightside business
in Europe is located primarily in Germany, the UK, Netherlands, Switzerland, Belgium and France. The division is one-third exposed to repair activity and two-thirds exposed to new build work. Construction activity in most of these markets was
severely impacted by the prolonged winter conditions in the early months of 2013. Although the Lightside business was less impacted due to its greater exposure to the repairs sector, weaker trading in key markets in the first half led to a reduction
in overall operating profit in 2013. Trading levels in the second half of 2013 were broadly in line with 2012, leading to an overall full-year like-for-like sales decline of 3% versus 2012. Our markets remained weak in the Netherlands where
new-build activity continued to deteriorate, while Switzerland, Belgium and France were somewhat more resilient. In Germany the market backdrop was more mixed with declines in non-residential and infrastructure activity offset by improving
residential RMI activity. The UK was the only major market showing growth in 2013, benefiting from strong residential markets. Despite a sharp focus on continued cost discipline, overcapacity in some more competitive markets led to margin erosion,
impacting negatively on overall profitability. In response to these challenging markets, as in prior years, we continued to engage in a number of restructuring measures to help realign our cost base to lower volumes.
 Construction Accessories With lower construction activity in our major markets, 2013 operating profit was behind 2012 due to lower volumes and continuing margin pressure in parts of the
business. Difficult European markets, combined with the adverse weather effect in the first half of 2013, negatively impacted profits. However, the export side of our business and the UK performed solidly. Shutters & Awnings This business, which is concentrated in
Germany and the Netherlands, benefited from stable demand in 2013, despite difficult markets, and with the contribution from 2012 acquisitions, 2013 operating profit was ahead of 2012. Fencing & Cubis Our Fencing business in the Netherlands
suffered declining sales in 2013 due to intense competition and a weather-impacted first half of the year. Price pressure was a key feature in this market, but a recovery in the German side of this business offset this somewhat. We also benefited
from a shift in product mix in our UK Fencing & Security businesses, which helped to improve margins. The Mobile Fencing business also experienced difficult markets, however, due to cost reduction measures, 2013 operating profit and margin
were in line with 2012. Cubis, our composite access chambers business, benefited from a robust UK market which drove higher sales and profits in 2013.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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##### Table of Contents

Europe Distribution  2013  Results







Analysis of
change million

%Change


2013


2012


TotalChange






Organic


Acquisitions


Restructuring/Impairment


Pensions


ExchangeSales revenue


-1%



3,936



3,956



-20







-175



+180



-



-



-25EBITDA (as defined)*


-14%



186



217



-31







-47



+7



-1



+11



-1EBITDA (as defined)* margin



4.7%



5.5%Operating profit


-27%



106



145



-39







-48



+4



-5



+11



-1Pension restructuring gains amounted to 11 million (2012: nil)







Restructuring costs amounted to 4 million (2012: 3 million)Impairment charges of 4 million were incurred (2012: nil)  EBITDA (as defined)* above includes pension restructuring gains and operating profit is also stated after
impairment charges; the net 7 million impact of these items has been excluded from the commentary that follows. The Distribution business was
also impacted by the adverse first-half weather conditions in 2013. This together with weak construction activity and low consumer confidence, particularly in the Netherlands (which accounts for almost 30% of 2013 Distribution sales), contributed to
a 4% reduction in like-for-like sales in 2013, the impact of which was largely offset by the incremental impact of acquisitions completed in 2012 and 2013. Following sharp profit reductions in the first half of 2013, the second half saw a moderation
in the rate of decline which, combined with previous restructuring efforts and cost saving initiatives and certain pension curtailment benefits, limited the overall decline in full-year EBITDA (as defined)* to 14%. Our professional builders merchants network was strengthened by three acquisitions during 2013. In the Benelux, we acquired a well-established seven-branch
builders merchant, which complements our existing Dutch business, and a two-branch Belgian operator. We also acquired four branches in northern France increasing our Normandy network to 19 locations. Professional Builders Merchants Overall 2013 results for our
wholly-owned professional builders merchants business, which operates 349 branches in six countries, were lower than in 2012. The incremental contribution from acquisitions more than offset the shortfall in like-for-like sales in the Benelux where
weak markets, especially in Dutch residential and new-build, continued to impact performance. Despite strong cost control and economies of scale from acquisitions, operating profit was behind 2012. Sales levels in France were slightly lower for 2013
overall but operating profit improved due to the continued focus on pricing, purchasing and cost control. In Switzerland, the strength of the Swiss Franc continued to affect competitiveness contributing to a decline in sales and, despite the ongoing
roll-out of various excellence programmes, both operating margin and profit were also lower than 2012. Sales levels in Austria were severely impacted by the bad weather in the first quarter of 2013 and operational challenges due to a system
implementation, resulting in operating
 profit that was significantly behind 2012. Despite the severe impact of the bad weather in early 2013, our builders merchants activities in Germany saw improved trading from April onwards and,
together with better margins and good cost control, resulted in operating profit for the year that was in line with 2012. DIY Our wholly-owned DIY business operates 196 stores in the Netherlands, Germany and Belgium. Operating profit for 2013 was lower than in 2012. In the Netherlands,
the combination of the very severe weather during the first quarter of 2013 and the continued weakness in consumer confidence resulted in sales levels in our Dutch DIY business that were significantly lower than 2012 and operating profit declined
despite restructuring and cost-saving measures. In Belgium, our DIY activities proved more resilient and reported similar sales and operating profit in 2013 to those achieved in 2012. In a challenging environment for the German DIY sector, sales in
our German DIY business were also impacted by the adverse weather and, despite continued cost focus, operating profit and margin were lower than 2012. Sanitary,
Heating and Plumbing 2013 sales for our SHAP business, which operates 126 branches, were ahead of 2012 due to an organic improvement in our German and
Belgian businesses together with the incremental impact of the two Belgian acquisitions completed in the second half of 2012. Due to the challenging market conditions in Switzerland, 2013 results were lower compared with 2012. Overall operating
profit for our SHAP activities was ahead of 2012 assisted by the contribution from acquisitions.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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##### Table of Contents

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Americas Materials  2013  Results







Analysis of
change million

%Change


2013


2012


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


ExchangeSales revenue


-3%



4,721



4,886



-165







-147



+141



-



-



-159EBITDA (as defined)*


-



557



555



+2







-15



+33



-



+2



-18EBITDA (as defined)* margin



11.8%



11.4%Operating profit


-19%



226



279



-53







-12



+26



-



-58



-9Restructuring costs amounted to 12 million (2012: 14 million)Impairment charges of 60 million were incurred (2012: nil)  The commentary below excludes the adverse impact of impairment charges on operating profit. Adverse weather conditions in 2013, which had resulted in a 25% decline in first-half US$ EBITDA (as defined)*, continued to impact operations in July and in
the early weeks of August. Trading conditions proved much more favourable thereafter through to November and second-half US$ EBITDA (as defined)* was ahead of the corresponding period in 2012. Positive first-half trends in pricing continued into the
second half of 2013. Though overall like-for-like sales revenue was 3% lower than 2012, contributions from acquisitions resulted in overall US$ EBITDA (as defined)* for 2013 being 4% ahead of 2012. A total of 10 acquisitions were completed in 2013 at a cost of 77 million, adding 457 million tonnes of reserves, 13 operating quarries, 5
strategic reserves locations, 6 asphalt plants and 7 readymixed concrete plants with annual production of 2.0 million tonnes of aggregates, 0.4 million tonnes of asphalt and 0.1 million cubic metres of readymixed concrete. Energy and related costs: The price of bitumen, a key component of asphalt mix, declined by 4% in 2013 following a 7% increase in 2012. Prices for diesel
and gasoline, important inputs to aggregates, readymixed concrete and paving operations, decreased by 2% and 3% respectively. The price of energy used at our asphalt plants, consisting of fuel oil, recycled oil, electricity and natural gas, fell by
1%. Recycled asphalt and shingles accounted for approximately 20% of total asphalt requirements in 2013. Wider use of warm-mix asphalt continued to deliver cost and customer benefits. With the positive effects of lower bitumen costs and further
increased use of recycled asphalt, unit costs reduced by 2% from 2012. Aggregates: 2013 like-for-like volumes were slightly ahead of 2012 while
total volumes including acquisitions increased 7%. Average prices increased by 3% on a like-for-like basis and 2% overall compared with 2012. Price increases together with efficient cost control resulted in an improved margin for this business in
2013. Asphalt: Impacted by poor weather and a later start to paving projects, like-for-like volumes were down 7% in 2013 with total volumes
including acquisitions down 3%. While the average like-for-like sales price fell 1% in 2013 and overall average price fell 2%, with the benefit of the 4% reduction in bitumen costs, margin per unit was maintained in 2013.
 Readymixed Concrete: Like-for-like volumes decreased 2% in 2013 while total volumes including acquisitions
were up 2% compared with 2012. With average prices 4% higher on a like-for-like basis and up 5% overall, margins improved in 2013. Paving and
Construction Services: The poor first-half weather also contributed to a later start on paving projects, resulting in 2013 sales being 5% lower than 2012, and a reduction of 6% on a like-for-like basis in 2013. Pricing remained under pressure in
a competitive bidding environment; however, efficiency improvements enabled an improvement in overall margin. Regional Performance East The East region comprises operations in 22
states, the most important of which are Ohio, New York, Florida, Michigan, New Jersey, Pennsylvania and West Virginia. The adverse weather conditions in the first half of 2013 had the greatest impact on the Mid-Atlantic division, which reported
lower results than in 2012. In the Northeast division, 2013 results benefited from the inclusion of acquisitions completed at the end of 2012, and operating results improved. The Central division profits were broadly consistent with 2012 with lower
volumes offset by improved prices. The residential market in Florida continued its upward trend contributing to strong volumes, better prices and margin growth, and positively impacting performance in the Southeast division. Overall 2013 operating
profit for the East region was higher than 2012 with volumes 8%, 4% and 9% ahead of 2012 for aggregates, asphalt and readymixed concrete respectively. West The West region also has operations in 22 states, the most important of which are Utah, Texas, Washington, Missouri, Iowa, Kansas and Mississippi. Poor
weather conditions that persisted through to mid-August affected 2013 results in both the Central West and Mountain West divisions, with a reduction in large infrastructure contracts in Utah further contributing to the lower outcome in Mountain West
compared with 2012. More positively, the Northwest division saw substantial improvement over 2012s record lows. With overall declines in asphalt and readymixed concrete volumes of 14% and 3% respectively, only partly offset by increases in
aggregates volumes of 4%, 2013 operating profit was lower than in 2012.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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##### Table of Contents

Americas Products  2013  Results







Analysis of
change million

%Change


2013


2012


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


ExchangeSales revenue


+9%



3,068



2,806



+262







+219



+166



-6



-



-117EBITDA (as defined)*


+21%



246



204



+42







+37



+21



-



-9



-7EBITDA (as defined)* margin



8.0%



7.3%Operating profit


-21%



68



86



-18







+49



+12



-



-76



-3Restructuring costs amounted to 11 million (2012: 2 million)Impairment charges of 71 million were incurred (2012: 4 million)  The commentary below excludes the adverse impact of impairment charges on operating profit. A recovery in residential construction in the United States and an ongoing pick-up in overall economic activity helped Americas Products improve its results in
2013. Like-for-like sales were 8% ahead of 2012. The impact of input cost pressures was more than offset by a continued tight focus on operational efficiency and targeted pricing improvements. As a result, with the benefit of organic growth, modest
pricing benefits, cost reduction initiatives and contributions from acquisitions, the segment achieved a significant increase in operating profit and margin in 2013. Four acquisitions were completed in 2013 at a total spend of 123 million. Of particular note was the acquisition by our Architectural Products Group
(APG) of hardscape and masonry operations both in Western Canada (seven facilities) and the Carolinas (14 plants), extending our footprints of core product categories into new markets. The Canadian acquisition establishes APG as the only
coast-to-coast manufacturer of masonry and hardscape products. Architectural Products APG is a leading supplier of masonry and hardscape products, packaged lawn and garden products, clay brick and fencing solutions. In addition to
contractor-based new construction, the DIY and professional RMI segments are significant end-users. After a slow start to 2013, the business benefited from improving new residential construction, increasing RMI spend and favourable weather in the
second half of the year. However, overall growth was dampened somewhat by weak recovery in the non-residential segment. Generally activity was more robust in the West and South while remaining more challenged in the Northeast, Midwest and Eastern
Canada. The improving housing market, together with product innovation and commercial initiatives, drove gains across most businesses while further cost reduction measures and selected price improvements offset the impact of higher input costs.
Overall, APG recorded a higher operating profit for 2013, reflecting a 3% increase in like-for-like sales, margin improvement and a solid contribution from recent acquisitions. Precast The Precast group manufactures a broad range of value-added
concrete and polymer-based products primarily for utility
 infrastructure applications. The business saw an improved market environment in 2013 and registered solid gains as growth initiatives continued to deliver. Improvements were seen in most regions
with particular progress in the Great Plains, northern California and Mid-Atlantic regions. Commercial and infrastructure markets remained generally subdued but residential demand, as well as energy and environment-related markets, continued to show
positive trends. In our traditional utility and structural precast products businesses volumes increased 5% over 2012 and higher input costs were recovered through price increases. Overall like-for-like sales increased by 6% in 2013 and operating
profit advanced significantly in 2013. BuildingEnvelope® The BuildingEnvelope® group is North Americas leading supplier of architectural glass and
aluminium glazing systems to close the building envelope. New non-residential building activity, a key market segment for this business, was largely flat in 2013 resulting in challenging market conditions. Despite this backdrop, ongoing initiatives
to gain market share and differentiate the business through innovative product and technology offerings drove solid top-line growth. Organic sales rose 14% in 2013, outpacing the overall market. The Architectural Glass and Storefront division
benefited from an improved pricing environment, resilient non-residential RMI activity and a generally more favourable product mix. Our Engineered Glazing Systems division enjoyed increased activity as major project work progressed. With a tight
focus on cost control, product quality and improved processes, the business delivered operating profit improvement in 2013. South America 2013 results for our operations in Argentina improved compared with 2012; production and sales mix changes contributed to an increase in volumes, prices and
marginal contribution in the floor and wall tile segments. Results from our businesses in Chile were down on 2012 with modest gains in specialised construction products offset by lower prices in our glass products due to increased competition.
Overall 2013 sales and operating profit for our South American operations were higher than in 2012.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.


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##### Table of Contents

LOGO


Americas Distribution  2013  Results







Analysis of
change million

%Change


2013


2012


TotalChange






Organic


Acquisitions


Divestments


Restructuring/Impairment


ExchangeSales revenue


+6%



1,664



1,576



+88







+112



+27



-



-



-51EBITDA (as defined)*


+7%



89



83



+6







+8



+1



-



-



-3EBITDA (as defined)* margin



5.3%



5.3%Operating profit


+14%



67



59



+8







+10



-



-



-



-2Restructuring costs amounted to 1 million (2012: 1 million)  Americas Distribution, trading as Allied Building Products (Allied), experienced solid performance
across its activities in 2013 and reported good overall results. Both business divisions continued to advance and sales and operating profit were ahead of 2012. Performance in our Exterior Products business was led by a strong Northeast and the
rebuilding efforts following Hurricane Sandy. The Interior Products business continued to show growth as both volumes and pricing improved throughout 2013. In 2013, Allied management maintained its focus on streamlining administrative procedures and eliminating redundant processes through a significant internal
initiative. This simplification of business processes, along with the ongoing evolution of our organisational structure, is aimed at improving acquisition integration and enhancing operating synergies and should allow for greater economies of scale
as our business, and the overall markets, grow. We completed three small transactions in 2013. A three-branch Interior Products company based in the
Baltimore/Washington, D.C. market was acquired in April and a four-branch Interior Products business based in northern Florida was added in October 2013. Certain assets of a small distressed business in Houston were also acquired to provide a
platform for an Exterior Products strategy in Texas. Progress continued to be made in 2013 to increase brand awareness of Tri-Built, Allieds
proprietary private label brand, as both sales and product offerings grew. Additionally, Allied implemented a new greenfield and service centre strategy in order to help drive growth in existing markets. The new service centre model will enable us
to improve customer service, consolidate fixed costs and more efficiently leverage branch assets. This new customer service platform, together with our process and procedure streamlining efforts and our commitment to employee development, continue
to further help differentiate Allied in the marketplace.
 Exterior Products Exterior Products are largely comprised of roofing and siding products, the demand for which is greatly influenced by residential and commercial replacement
activity (75% of sales volume is RMI-related) with key products having an average life span of 25 years. Allied continued to maintain its position as one of the top three roofing and siding distributors in the United States. Strong growth was
experienced in the Northeast in 2013 driven by the rebuilding efforts following Hurricane Sandy. However, competitive pressures across the industry continued as the overall market contracted from 2012 leading to price pressure in all regions. A regional restructuring was completed in 2013 with the focus on reducing costs and improving customer service, which allowed us to maintain operating margin at
a level consistent with 2012. Overall the Exterior Products division reported sales and operating profit ahead of 2012. Interior Products The Interior Products business sells wallboard, steel studs and acoustical ceiling systems to specialised contractors and is heavily dependent on the new
residential and commercial construction market, having low exposure to weather-driven replacement activity. Allied is the third-largest Interior Products distributor in the United States. Performance in this business was strong in all markets in
2013 with increased volumes and prices of our core products contributing to higher sales and improved operating margin, which further benefited from the lower cost base resulting from the cost savings initiatives undertaken in recent years.
   *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.






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GovernancePageBoard of Directors


87Corporate Governance Report


90Directors Remuneration Report


108


LOGO






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LOGO



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Board of
Directors  Nicky Hartery 
Chairman 
Appointed to the Board:June 2004 
Nationality:Irish 
Age:63 
Committee membership:Acquisitions Committee; Finance
Committee; Nomination & Corporate Governance
Committee; Remuneration Committee

LOGO

Skills and experience: Nicky was Vice President of Manufacturing and Business Operations for Dell Inc.s
Europe, Middle East and Africa (EMEA) operations from 2000 to 2008. Prior to joining Dell, he was Executive Vice President at Eastman Kodak and previously held the position of President and Chief Executive Officer at Verbatim Corporation, based in
the United States. Qualifications: C.Eng, FIEI, MBA. 
External appointments:Chief Executive of Prodigium, a consulting company which provides business advisory services; non-executive
director of Musgrave Group plc, a privately-owned international food retailer, Eircom Limited, a telecommunications services provider in Ireland, and of Finning International, Inc., the worlds largest Caterpillar equipment
dealer.Albert Manifold 
Chief Executive 
Appointed to the Board:January 2009 
Nationality:Irish 
Age:52 
Committee membership:Acquisitions Committee

LOGO

Skills and experience:Albert was appointed a CRH Board Director in January 2009. He joined CRH in 1998. Prior to joining CRH, he was Chief Operating
Officer with a private equity group. While at CRH, he has held a variety of senior positions, including Finance Director of the Europe Materials Division, Group Development Director and Managing Director of Europe Materials. He became Chief
Operating Officer in January 2009 and was appointed Group Chief Executive with effect from 1 January 2014. Qualifications: FCPA, MBA, MBS.Maeve Carton 
Finance Director 
Appointed to the Board:May 2010 
Nationality:Irish 
Age:56 
Committee membership:Acquisitions Committee; Finance
Committee

LOGO

Skills and experience:Since joining CRH in 1988, Maeve has held a number of roles in the Group Finance area and
was appointed Group Controller in 2001, Head of Group Finance in January 2009 and to the position of Finance Director in May 2010. She has broad-ranging experience of CRHs reporting, control, budgetary and capital expenditure processes and has
been extensively involved in CRHs evaluation of acquisitions. Prior to joining CRH, she worked for a number of years as a chartered accountant in an international accountancy practice. Qualifications: MA, FCA.
 External appointments:Board member of the National Treasury
Management Agency (NTMA), a state body that provides asset and liability management services to the Irish Government.Mark S. Towe 
Chief Executive Officer Oldcastle, Inc. 
Appointed to the Board:July 2008 
Nationality:United States 
Age:65 
Committee membership:Not applicable

LOGO

Skills and experience:Mark joined CRH in 1997 and was appointed a CRH Board Director with effect from July 2008. In 2000, he was appointed President
of Oldcastle Materials, Inc. and became the Chief Executive Officer of this Division in 2006. He was appointed to his current position of Chief Executive Officer of Oldcastle, Inc. (the holding company for CRHs operations in the Americas) in
July 2008. With over 40 years of experience in the building materials industry, he has overall responsibility for the Groups aggregates, asphalt and readymixed concrete operations in the United States and its products and distribution
businesses in the Americas.


LOGO






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LOGO


Board of Directors| continued  Ernst J. Bärtschi 
Non-executive Director 
Appointed to the Board:October 2011 
Nationality:Swiss 
Age:62 
Committee membership:Audit Committee (Financial
expert); Finance Committee

LOGO

Skills and experience: Ernst was Chief Executive of Sika AG, a manufacturer of speciality chemicals for
construction and general industry, until 31 December 2011. Prior to joining Sika, he worked for the Schindler Group and was Chief Finance Officer between 1997 and 2001. Over the course of his career he has gained extensive experience in India, China
and the Far East generally. Qualifications: LIC.OEC.HSG. 
External appointments:Chairman of the Board of Directors of Conzetta AG, a broadly diversified Swiss company, member of the board of
Bucher Industries AG, a mechanical and vehicle engineering company based in Switzerland; member of the advisory board of China Renaissance Capital Investment Inc., a private equity investment company in Hong Kong, China.William P. Egan 
Non-executive Director 
Appointed to the Board:January 2007 
Nationality:United States 
Age:69 
Committee membership:Nomination & Corporate Governance
Committee; Remuneration Committee

LOGO

Skills and experience:Bill is founder and General Partner of Alta Communications and Marion Equity Partners LLC,
Massachusetts-based venture capital firms. He is past Chairman of Cephalon Inc., and past President and Chairman of the National Venture Capital Association. He was until May 2014, director of the Irish venture capital company Delta Partners
Limited. Qualifications: BA, MBA.  External
appointments:He serves on the boards of several communications, cable and information technology companies.Utz-Hellmuth Felcht 
Non-executive Director 
Appointed to the Board:July 2007 
Nationality:German 
Age:67 
Committee membership:Acquisitions Committee;
Finance Committee

LOGO

Skills and experience:Utz-Hellmuth was, until May 2011, Chairman of the Supervisory Board of Süd-Chemie
Aktiengesellschaft. He was also Chief Executive of Degussa AG, Germanys third largest chemical company, until May 2006, and a partner in the private equity group One Equity Partners Europe GmbH until July 2014.
 External appointments:Chairman of the Supervisory board of
German rail company Deutsche Bahn AG and director of Jungbunzlauer Holding AG.John W. Kennedy 
Non-executive Director 
Appointed to the Board:June 2009 
Nationality:Irish 
Age:64 
Committee membership:Acquisitions Committee; Finance Committee

LOGO

Skills and experience:John is past Chairman of Wellstream Holdings plc. In a 40 year career, he has served as
Executive Vice President of Halliburton Company, President of Dresser Enterprises and Chief Operations Officer of Brown and Root Services. He is a past director of the UK Atomic Energy Authority and Integra Group. Qualifications: M.Sc, BE, C.Eng,
FIEE.  External appointments:Non-executive Chairman of
Lamprell plc; director of Maxwell Drummond International Limited and BiFold Group Limited.Patrick J. Kennedy 
Non-executive Director 
Appointed to the Board:January 2015 
Nationality:Irish 
Age:61 
Committee membership:Acquisitions Committee; Audit
Committee

LOGO

Skills and experience:Pat was Chairman of the Executive Board of Directors of SHV Holdings (SHV), a large family-owned Dutch multinational company
with a diverse range of operational and investment activities, including the production and distribution of energy, the provision of industrial services, heavy lifting and transport solutions, cash and carry wholesale and the provision of private
equity. He retired from SHV mid-2014. During a 32 year career with SHV, he held various leadership roles across SHVs diverse portfolio of businesses, while living in various parts of the world, and was a member of the Executive Board of SHV
from 2001, before becoming Executive Chairman in 2006. Qualifications: MBS, BComm.






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Donald A. McGovern, Jr. 
Non-executive Director* 
Appointed to the Board:July 2013 
Nationality:United States 
Age:63 
Committee membership:Nomination & Corporate
Governance Committee; Remuneration Committee

LOGO

Skills and experience: Don retired from PricewaterhouseCoopers (PwC) in June 2013, following a 39 year career with the firm. During
that time he was Vice Chairman, Global Assurance at PwC, a position he had held since July 2008 and directed the US firms services for a number of large public company clients. He also held various leadership roles in PwC and was, from July
2001 to June 2008, a member of, and past lead director for, the Board of Partners and Principals of the US firm as well as a member of PwCs Global Board. Qualifications: CPA, MBA.
 External appointments:Director of Neuraltus Pharmaceuticals, Inc.
 * Don McGovern is Senior Independent DirectorHeather Ann McSharry 
Non-executive Director 
Appointed to the Board:February 2012 
Nationality:Irish 
Age:53 
Committee membership:Audit Committee; Finance Committee

LOGO

Skills and experience:Heather Ann is a former Managing Director Ireland of Reckitt Benckiser and Boots Healthcare and was previously a
non-executive director of Bank of Ireland plc and IDA Ireland. Qualifications: BComm, MBS. 
External appointments:Non-executive director of Greencore Group plc and Jazz Pharmaceuticals plc; Chairman of the Bank of Ireland Pension Fund Trustees
Board; director of Ergonomics Solutions International and the Institute of Directors.Dan OConnor 
Non-executive Director 
Appointed to the Board:June 2006 
Nationality:Irish 
Age:55 
Committee membership:Nomination & Corporate Governance
Committee; Remuneration Committee

LOGO

Skills and experience:Dan is a former President and Chief Executive Officer of GE Consumer Finance - Europe and a former Senior
Vice-President of GE. He was Executive Chairman of Allied Irish Banks, p.l.c. until October 2010. Qualifications: BComm, FCA. 
External appointments:Director of Glanbia plc, an Irish food company and International Personal Finance plc, a consumer lending business.Henk Rottinghuis 
Non-executive Director 
Appointed to the Board:February 2014 
Nationality:Dutch 
Age:58 
Committee membership:Acquisitions Committee; Audit Committee

LOGO

Skills and experience:Henk has a background in distribution, wholesale and logistics. He was until 2010, Chief Executive Officer at
Pon Holdings B.V., a large, privately held international company which is focussed on the supply and distribution of passenger cars and trucks, and equipment for the construction and marine sectors. He was also a member of the Supervisory Board of
the Royal Bank of Scotland N.V. and the retail group Detailresult Groep. Qualifications: Masters degree in Dutch Law. 
External appointments:Chairman of the Supervisory Board of Stork Technical Services and member of the Supervisory Board of the retail group Blokker
Holding B.V.Lucinda Riches 
Non-executive Director 
Appointed to the Board:March 2015 
Nationality:British 
Age:53 
Committee membership:Nomination & Corporate Governance
Committee; Remuneration Committee

LOGO

Skills and experience:Lucinda spent the majority of her career in investment banking, including 21 years in UBS Investment Bank and
its predecessor firms where she worked until 2007. She held senior management positions in the UK and the US, including Global Head and Chairman of the UBS Capital Markets Group and Vice Chairman of the Investment Banking Division.
Qualifications: Masters in Philosophy, Politics and Economics and a Masters in Political Science. 
External appointments:Non-executive director of UK Financial Investments Limited, which manages the UK governments investments in financial
institutions. She is also a non-executive director of Diverse Income Trust plc, Graphite Enterprise Trust plc, the British Standards Institution and a non-executive member of the Partnership Board of King & Wood Mallesons LLP. She is also a
trustee of Sue Ryder.


LOGO






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|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|CRH plc has a secondary listing on the Irish Stock Exchange. For this reason, CRH plc
is not subject to the same ongoing listing requirements as would apply to an Irish company with a primary listing on the Irish Stock Exchange. For further information, shareholders should consult their own financial adviser. Further details on the
Groups listing arrangements, including its premium listing on the London Stock Exchange, are set out on page 92. |  |  |  | LOGO |  | Corporate Governance Report
 Chairmans Introduction
 The following report outlines our approach to corporate governance and how we implement
the 2012 UK Corporate Governance Code (the 2012 Code).  The reports from the Chairmen of
Audit, Nomination & Corporate Governance and Remuneration Committees on pages 97, 102 and 108 respectively highlight the key areas of focus for, and the background to the principal decisions taken by, those
Committees.  In relation to 2014, we complied in full with the provisions of the 2012
Code. We also have procedures in place for compliance with our obligations under the applicable rules and regulations issued by the United States Securities and Exchange Commission.
 Board Renewal and Re-election
We have recently appointed two new non-executive Directors to the Board. Pat Kennedy, former Chief Executive of SHV Holdings, a large family owned Dutch
multi-national company with a diverse range of operational and investment activities, was appointed in January 2015. Lucinda Riches, who spent the majority of her career in investment banking, including 21 years in UBS Investment Bank and its
predecessor firms where she worked in senior management positions in the UK and the US, was appointed on 1 March 2015. Their biographies, along with those of the other Board members are set out on pages 87 to 89. The Groups approach to
Board renewal and succession planning is set out on page 93 and in the Nomination & Corporate Governance Committee section.





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Last year, I reported that the Board had set itself the goal of increasing the number of female Directors to
circa 25% of the Board by the end of 2015. In this regard, I am pleased to report that, following the 2015 Annual General Meeting, to be held in early May, one quarter of the Board will be female. In relation to each of the Directors putting themselves forward for reelection at the 2015 Annual General Meeting, I have conducted a formal evaluation of the
performance of each Director, which included training needs where appropriate. I can confirm that each of the Directors continues to perform effectively and to demonstrate strong commitment to the role. As referred to in my introduction on page 2, John Kennedy and Dan OConnor, after many years service to CRH, will retire from the Board following the
conclusion of the 2015 Annual General Meeting. Board Effectiveness and Training During the course of 2015, an external consultant will be engaged to facilitate the external evaluation of the effectiveness of the Board. The external
evaluation will supplement our existing internal evaluation processes, details of which are set out on page 94. The last externally facilitated evaluation was carried out in 2012. Also this year, together with Don McGovern who took over as Senior
Independent Director in January 2015, I will be reviewing the training arrangements we have in place for Directors with a view to partnering with an external firm to provide a range of programmes which Directors can avail of on an ongoing basis.
 Talent Management / Succession Planning Throughout its history, CRHs approach to recruiting, developing and retaining talented executives has resulted in a long standing tradition of making
internal appointments for critical senior roles and is an important component in the achievement of the Groups strategic priorities. Nevertheless, the Board recognises that CRHs evolving organisation structure and the expansion of the
Groups geographic footprint over time will bring additional challenges. In this regard, we will be working with the Chief Executive and the Group Human Resources and Talent Development Director to take a fresh look at our processes in 2015 and
the coming years to ensure we have a pipeline of executives at all levels to match our needs. Shareholder Engagement and Reporting This year the Senior Independent Director and I will again hold meetings with large shareholders prior to the Annual General Meeting to discuss
any areas of concern in relation to the agenda for that meeting or other topical governance-related matters. We appreciate the level of interest and engagement in this process, which provides us with an insight into the views of shareholders on
CRHs governance structures and in relation to recent or upcoming developments in this area. I am always available to meet with shareholders outside of this process should the need arise.
 Conclusion As a Board, we are committed to a process of continued improvement in our collective effectiveness. In this regard, I look forward to the feedback from our
upcoming external evaluation process. Nicky Hartery Chairman


LOGO






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LOGO


Corporate Governance Report |continued  Stock Exchange Listings and Corporate Governance Codes CRH, which is incorporated in Ireland and subject to Irish company law, has a premium listing on the London Stock Exchange, a secondary listing on the Irish
Stock Exchange and its American Depositary Shares are listed on the New York Stock Exchange. This Report describes CRHs governance principles and
practice and the Groups risk management and internal control systems. The Report also sets out how CRH applies the main and supporting principles of the 2012 UK Corporate Governance Code (the 2012 Code). A copy of the 2012 Code can be obtained from the Financial Reporting Councils website, www.frc.org.uk. Board of Directors   What are the responsibilities of the Board?  LOGO The Board is responsible for the leadership, oversight, control, development and
long-term success of the Group. It is also responsible for instilling the appropriate culture, values and behaviour throughout the organisation.   There is a formal schedule of matters reserved to the
Board for consideration and decision. This includes the matters set out in table 1 below.  Matters Reserved
to the Board

Table 1Appointment of DirectorsStrategic plans for the GroupAnnual budgetMajor acquisitions and disposalsSignificant capital expenditureApproval of the Annual ReportApproval of the Interim ResultsIssuance of guarantees The Groups strategy, which is regularly reviewed by the Board, and its business model are summarised in the Strategic
Report on pages 34 to 43. The Board has delegated some of its responsibilities to Committees of the Board. The work of each Committee is set out on pages
97 to 131 of this Report. While
 responsibility for monitoring the effectiveness of the Groups risk management and internal control systems
has been delegated to the Audit Committee*, the Board retains ultimate responsibility for determining the Groups risk tolerance and annually considers a report in relation to the monitoring, controlling and reporting of
identified risks and uncertainties. In addition, the Board receives regular reports from the Chairman of the Audit Committee in relation to the work of that Committee in the area of risk management. Individual Directors may seek independent professional advice, at the expense of the Company, in the furtherance of their duties as a Director. The Group has a Directors and Officers Liability insurance policy in place.   How do the roles of the Chairman and Chief Executive differ?  LOGO It has been CRHs practice since the formation of the Group in the 1970s that
the roles of Chairman and Chief Executive are not combined.   The Board has delegated responsibility for the management of the Group, through the Chief Executive, to executive management. There is a clear division of
responsibilities between the roles of the Chairman and the Chief Executive, which is set out in writing and has been approved by the Board. A summary of the respective roles is set out in table 2 across.   What is the membership structure of the Board?  LOGO It is CRHs practice that a majority of the Board comprises non-executive
Directors.   At present, there are 3 executive and 11** non-executive Directors. Biographical details are set out on pages 87 to 89. Non-executive Directors are expected to
challenge management proposals constructively and to examine and review management performance in meeting agreed objectives and targets. In addition, they are expected to draw on their experience and knowledge in respect of any challenges facing the
Group and in relation to the development of proposals on strategy.
 We consider the current size and composition of the Board to be within a range which is appropriate. We also
believe that the current size of the Board is sufficiently large to enable its Committees to operate without undue reliance on individual non-executive Directors, while being dynamic and responsive to the needs of the Group. The spread of
nationalities of the Directors reflects the geographical reach of the Group and we consider that the Board as a whole has the appropriate blend of skills, knowledge and experience, from a wide range of industries, regions and backgrounds, necessary
to lead the Group. None of the executive Directors is a non-executive director of another listed company. The current membership structure of the Board is set out in table 3 on page 93.    Chairmanis responsible for

Table 2The efficient and effective working of the BoardEnsuring that Board agendas cover the key strategic issues confronting the Group, that the Board reviews and approves managements plans for the Group and that the Directors receive accurate,
timely, clear and relevant informationMaking certain that the Board applies sufficient challenge to management proposals and examines and reviews management performance in meeting agreed objectives and targetsOverseeing the search for new Board membersChief Executiveis responsible forFull day-to-day operational and profit performance of the Group and accountability to the Board for all authority delegated to executive managementExecuting strategy agreed with the Board and reporting regularly on the progress and performance of the GroupCo-ordinating and overseeing the profitable growth of the Groups diverse portfolio of international businessesMaximising the contribution of senior management to business planning, operational control and profit performance
   *   In accordance with Regulation
91(6)(b) of the European Communities (Statutory Audits) (Directive 2006/43) Regulations 2010. ** Will reduce to nine following the conclusion of the 2015
Annual General Meeting.






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Corporate Governance Report| continued   LOGO  How does the Board plan for succession and what is its policy on diversity?  LOGO The Board plans for its own succession with the assistance of theNomination & Corporate Governance Committee.   For non-executive appointments, independent consultants
are normally engaged to search for suitable candidates. The process to identify, evaluate and appoint a non-executive Director with the suitable experience, skills and time commitment takes into account both the needs of CRH and the tenure and
skills of existing Board members. As a result, Board renewal and the appointment of non-executive Directors is a continuous process. The process put in place
 in respect of appointments made since the 2013 Annual Report was published is set out in the Chairmans
introduction to the Nomination & Corporate Governance Committees Report on pages 102 and 103. External consultants are engaged
for executive Director recruitment if, and when, required. In the case of the Chief Executive role, the Board appoints a succession committee of long standing non-executive Directors, when required. The incumbent Chief Executive generally acts as
advisor to that committee. We are committed to ensuring that the Board is sufficiently diverse and appropriately balanced. In its work in the area of Board
renewal, the Nomination & Corporate Governance Committee looks at the following four criteria when considering non-executive Director candidates:



international business experience, particularly in the regions in which the Group operates or into which it intends to expand;  
skills, knowledge and expertise in areas relevant to the operation of the Board;  
diversity, including nationality and gender; and  
the need for an appropriately sized Board. During the ongoing process of Board renewal, each, or a combination,
of these factors can take priority. In 2014, the Board set itself the goal of increasing the number of female Board members to circa 25% by the end of
2015. Following the 2015 Annual General Meeting, this objective will have been achieved.   What criteria are used to determine the
independence of non-executive Directors?  LOGO The Board considers the principles relating to independence contained in the 2012
Code, together with the guidance provided by a number of shareholder voting agencies, and takes into account a Directors character, objectivity and integrity.   The independence of non-executive Board members is
considered annually. The Board is assisted in this by the annual review carried out by the Senior Independent Director which addresses the independence of the individual members of the Board, and by the work of the Nomination & Corporate
Governance Committee, which annually reviews each Board members directorships, and considers any relevant business relationships between Board members. We have concluded that all of the non-executive Directors bring independent judgement
to bear on issues of strategy, performance, resources, key appointments and standards, and have determined that each of the non-executive Directors is independent.   When was the Chairman appointed and does he
have non-CRH commitments?  LOGO While the Chairman holds other directorships (see details on page 87), the Board
considers that these do not interfere with the discharge of his duties to CRH.   Nicky Hartery was appointed Chairman of the Group in
2012. On his appointment as Chairman, he met the independence criteria


LOGO






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LOGO


Corporate Governance Report| continued  set out in the 2012 Code. During 2014, Nicky joined the Board of a Canadian listed company. The Board has
satisfied itself that this would not impact on his role as CRH Chairman. In February 2015, the Board considered the outcome of the annual review, carried
out by the Senior Independent Director, of the performance of the Chairman, whose initial term of office is due to expire at the conclusion of the Annual General Meeting in May 2015. The Board, chaired by the Senior Independent Director for this
purpose, resolved that Mr. Harterys term in office be extended for a further three years.   Who is the Senior Independent Director?  LOGO The Senior Independent Director is available to shareholders who have concerns that
cannot be addressed through the Chairman, Chief Executive or Finance Director.   Don McGovern was appointed as Senior Independent
Director in January 2015.   Who is the Company Secretary?  LOGO All Directors have access to the advice and services of the Company Secretary, who is
responsible to the Board for ensuring that Board procedures are complied with.   Neil Colgan was appointed Company Secretary in June
2009. The appointment and removal of the Company Secretary is a matter for the Board.   For what period are non-executive Directors
appointed?  LOGO Non-executive Directors are typically expected to serve two three-year terms,
although they may be invited by the Board to serve for further periods.   The standard terms of the letter of appointment for
non-executive Directors, which states that they are generally expected to serve two terms of three years, are available for inspection at the Companys registered office and at the Annual General Meeting. A non-executive Directors term of
office is subject to his/her annual re-election by shareholders and the letter of appointment does not provide for any compensation for loss of office.
 How are the induction, training and development needs of Directors catered for?  LOGO The Chairman agrees a tailored and comprehensive induction programme with each new
Director.   New Directors are provided with extensive briefing materials on the Group and its operations, the procedures relating to the Board and its Committees and their
duties and responsibilities as Directors under legislation and regulations that apply to the Company. A typical induction programme, which generally takes
place over the first year of a Directors appointment, would cover the topics set out in table 4 on page 95. Sessions are held periodically with the
Chairman at which progress is reviewed and feedback is sought. For newly-appointed members of the Audit Committee, additional training arrangements
include the topics set out in table 5 on page 95. Members of the Audit Committee receive periodic updates on accounting developments. Directors can also avail of opportunities to hear the views of, and meet with, the Groups shareholders. Directors regularly receive copies of research and
analysis conducted on CRH and the building materials sector. The Board receives regular updates from the external auditors in relation to regulatory and accounting developments. Updates in relation to other relevant matters, for example, changes in
company law, are provided from time to time.   What processes are in place for appraising the performance of Directors and for evaluating the effectiveness of the Board and its Committees?  LOGO An annual review of individual Directors performance is conducted by the
Chairman and each Director is provided with feedback gathered from other members of the Board.   The performance of individual Directors is assessed
against a number of measures, including the ability of the Director to contribute to the development of strategy, to understand the major risks affecting the Group, to contribute to the cohesion of the Board, to commit the time required to fulfil
 the role and to listen to and respect the views of other Directors and the management team. As part of that
review process the Chairman discusses with each individual their training and development needs and, where appropriate, agrees suitable arrangements to be put in place to address those needs. The Senior Independent Director conducts an annual review of Board effectiveness and the balance of skills, experience, independence and knowledge of the
Company on the Board, the operation and performance of the Chairman, the Board and its Committees and the effectiveness of Board communications. This is achieved through discussion in one-toone sessions with each Director, aided by the completion by
each Director of a questionnaire in advance. The meetings, which cover specific topics and allow for free-ranging discussion, provide a forum for an open and frank discourse. The Senior Independent Director circulates a written report to the Board,
which summarises the outcome of the review and sets out any recommendations from Board members in relation to areas where improvements can be made. Consideration of the Senior Independent Directors report is a formal agenda item at a scheduled
Board meeting.   When was the last external Board evaluation completed and what was the outcome?  LOGO The 2012 evaluation was facilitated by ICSA Board Evaluation, which has an extensive
record in facilitating evaluations in large listed companies both in Ireland and the UK.   An externally facilitated Board evaluation was carried
out by an independent third party, ICSA Board Evaluation in 2012, the outcome of which was very positive. The recommendations were reported in the 2012 Corporate Governance Report, a copy of which is available on the CRH website. The next external
evaluation will be conducted during 2015.






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Corporate Governance Report| continued   Induction Programme

Table 4Board
MembersTopic

Sessions withGroup strategy and finance: 
  Group strategy, the current challenges facing the Group and the trading backdrop
   Financial reporting, trading results,
acquisition models, funding sources/debt maturity, group treasury and credit rating metrics

Chief Executive, Finance Director, senior finance and treasury managementDivisional strategy and structure: 
 Divisional strategy and organisational structure 
 Development priorities 
 IT strategy

Chief Executive, Heads of Divisions and senior operational managementSenior management team: 
  Succession planning 
  Leadership development programmes 
  Remuneration trends

Chief Executive and Group Human Resources and Talent Development DirectorDirectors legal duties and responsibilities: 
  Legal duties and responsibilities 
  Management of inside information 
  Dealings in CRH securities 
  Listing rule requirements

Finance Director, Company Secretary and the Groups legal advisersCompliance & ethics, health & safety, risk management, investor relations and remuneration:
   Compliance & ethics policies and the
structures in place to ensure ongoing compliance 
  Health & safety programme, including the fatality elimination programme, and the Groups Corporate
Social Responsibility policies 
  Investor Relations programme and the views of the Groups major investors
   Enterprise Risk Management, insurance
arrangements and captive insurance programme

Finance Director, executives responsible for the relevant area, the Groups stockbrokers and the Remuneration Committees remuneration advisors  Audit Committee

Table 5Topic

Sessions withExternal Audit 
  Audit planning 
  Auditors responsibilities

Finance Director, senior finance management, Head of Internal Audit and external auditorsInternal Audit 
  Strategy and workplan 
  IT audit


What are the requirements regarding the retirement and re-election of Directors?  LOGO All Directors retire at each Annual General Meeting and, unless they are stepping
down from the Board, submit themselves to shareholders for re-election.   Re-appointment of Directors retiring at Annual General
Meetings is not automatic. Directors who are seeking re-election are subject to a satisfactory performance appraisal. All Directors are subject to the Memorandum and Articles of Association of the Company (a summary of provisions in the Memorandum
and Articles of Association relating to the Directors is set out on pages 204 and 205).   How often does the Board meet?  LOGO Details of the number of Board and Committee meetings during 2014, and of
Directors attendance at those meetings, is set out in table 11 on page 104.   There were eight full meetings of the Board during
2014. Each year, additional meetings, to consider specific matters, are held if and when required. Prior to their appointment, potential non-executive
Directors are made aware of the calendar of meetings and are asked to confirm that they are able to allocate sufficient time to meet the expectations of their role. The agreement of the Chairman is required before a Director accepts additional
commitments that might impact adversely on the time he or she is able to devote to CRH. The Board typically makes two visits each year to Board operations;
one in Europe and one in North America. Each visit lasts between three and five days and incorporates a scheduled Board meeting. In 2014, these visits were to Amsterdam in the Netherlands and Los Angeles in the United States.   How are Board agendas determined?  LOGO The Chairman sets the agenda for each meeting in consultation with the Chief
Executive and Company Secretary.   In setting the agendas, the Chairman ensures that sufficient time is allocated to strategy setting and review, performance monitoring, portfolio management,
including acquisitions


LOGO






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LOGO


Corporate Governance Report| continued  Typical Board Agenda Items

Table 6Recurring items on each agenda: 
  Minutes 
  Board matters (including Board Committee updates)
   Trading results
   Acquisitions/Disposals/Capital Expenditure
ProjectsPeriodic agenda items during the year: 
  Group strategy and Divisional strategy updates
   Group budget
   Full-year/interim financial results and
reports    Investor interaction and
feedback    Performance review of acquisitions
against the original Board proposal following three years of Group ownership 
  Funding proposals 
  Human resources and succession planning 
  Risk management and internal controls 
  Compliance & Ethics 
  Health & Safety review, with a particular focus on the Groups fatality elimination programme
   Environmental review and divestments, succession planning and talent management. Board agendas typically cover items set out in table 6 above. The non-executive Directors regularly meet before or after each Board meeting without executives being present. The papers for meetings are generally circulated electronically in the week prior to the meeting.   How does the Board ensure its reports are Fair, Balanced and Understandable?  LOGO The Board collectively determines whether or not it is appropriate to include in the
Annual Report a statement that the Board considers the document, taken as a whole, to be Fair, Balanced and Understandable.   The Groups Financial Reporting and Disclosure
Group (FRADG) reviews draft disclosures such as the annual and interim reports, and meets with the Finance Director to discuss proposed disclosures, in the context of whether draft reports fulfil the
 criteria of being fair, balanced and understandable. The conclusions of the FRADG are reported to the Board. To
ensure the Groups disclosures are in line with evolving best practice in this area, the FRADG, which is made up of executives with responsibilities across a range of functions, regularly receives feedback from external experts who review
published documents and provide guidance regarding developments. In the case of the Annual Report, to facilitate each Directors individual review, the draft document is circulated to Board members circa two weeks prior to the finalisation of
the report.   Are the Directors subject to securities dealing policies or codes?  LOGO Directors are required to obtain clearance from the Chairman and Chief Executive
before dealing in CRH securities.   Details of the CRH shares held by Directors are set out on page 121. CRH has a policy on dealings in securities that applies to all Directors and senior management. Directors and senior management are prohibited from dealing in
CRH securities during designated prohibited periods and at any time at which the individual is in possession of inside information (as defined in the Market Abuse (Directive 2003/6/EC) Regulations 2005). The policy adopts the terms of the Model
Code, as set out in the Listing Rules published by the UK Listing Authority subject to amendments in relation to Irish company law and taxation references.   What are the Committees of the Board?  LOGO The Board has established five permanent Committees to assist in the execution of its
responsibilities.   The current permanent Committees1 of the Board are the Acquisitions Committee, the Audit
Committee, the Finance Committee, the Nomination & Corporate Governance Committee and the Remuneration Committee. In
addition, ad-hoc Committees are formed from time to time to deal with specific matters. Each of the permanent Committees has terms of reference, under which authority is delegated to them by the Board. The Chairman of each Committee reports to the
 Board on its deliberations and minutes of all Committee meetings are circulated to all Directors. The current membership of each Committee and each members length of service is set out in the relevant sections in the remainder of this report.
Attendance at meetings held in 2014 is set out in table 11 on page 104. Chairmen of the Committees attend the Annual General Meeting and are available to
answer questions from shareholders.
   1
The Terms of Reference of these Committees comply fully with the 2012 Code requirements; CRH considers that they are generally responsive to the relevant
NYSE rules but may not address all aspects of these rules.






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Audit CommitteeThe Audit Committee currently consists of four non-executive Directors considered by the
Board to be independent1. The biographical details of each member are set out on pages 87 to 89. Together the members of the Committee bring a broad range of experience and expertise from a wide
range of industries which is vital in supporting effective governance.  The primary responsibilities of the Committee are to: 
  monitor the financial reporting process, the integrity of the financial statements,
including the Annual and Interim Reports, preliminary results announcements, interim management statements and any other formal announcement relating to the financial performance of the Company, and to review significant financial reporting issues
and judgements exercised in the preparation thereof; 
  monitor the audit of the financial statements;
   keep under review
the effectiveness of the Companys internal financial controls and the internal control and risk management systems and review and approve statements to be included in the Annual Report regarding internal control and risk management;
   review the
Companys arrangements for its employees to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters and review the Companys procedures and systems for detecting fraud and preventing
bribery; 
  keep under review the adequacy of the Groups compliance and ethics
function; 
  monitor and review the effectiveness of the internal audit function;
   review the
effectiveness of the audit process and the independence and objectivity of the external auditors; 
  develop and monitor the policy on non-audit services to be provided by the external
auditors; 
  approve the remuneration and terms of engagement of the external auditors;
   make recommendations
to the Board in relation to the appointment or removal of the external auditor; 
  report to the Board on how it has discharged its responsibilities.
 The responsibilities of the Audit Committee are set out in full in its
Terms of Reference, which are available on the CRH website, www.crh.com. 
1   The Board has determined that all of
the non-executive Directors on the Audit Committee are independent according to the requirements of Rule 10A 3 of the rules of the Securities and Exchange Commission.



LOGO

Chairmans overview
 On behalf of the Audit Committee, I am pleased to introduce the Audit
Committee Report for the year ended 31 December 2014. The non-executive Directors who were members of the Committee during 2014, together with their record of attendance at Committee meetings, are identified in table 11 on page 104. A
summary of recent and upcoming changes to the membership of the Audit Committee is set out in the Chairmans overview section of the Nomination & Corporate Governance Committee Report on page 103.
 Financial Reporting and External Audit
In July 2014, the Committee met with Ernst & Young to agree the 2014 external audit plan. Table 7 on page 99 outlines the key areas identified as being
potentially significant and how they were addressed by the Committee.  Impairment Testing / Accounting for Divestments The Committee reviewed managements goodwill impairment testing
methodology and process, through discussion with both management and Ernst & Young, and found the methodology to be robust and the results of the testing process appropriate. The Committee also reviewed the re-assessment of the carrying
value of the business units identified for divestment in 2013 (in respect of which an impairment charge of 683 million was recorded in the 2013 Consolidated Financial Statements). No goodwill impairments or reversal of previous
impairments were recorded during the year (see note 14 on pages 159 to 161 for more details). However, a number of the business units identified for divestment met the held for sale criteria contained within IFRS 5 Non-current Assets
Held for Sale and Discontinued Operations at 31 December 2014 and have been re-classified as such in the Consolidated Financial Statements (see note 4 on page 151 for more details).


LOGO






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LOGO


Corporate Governance Report |continued  Enterprise Risk Management During 2014 the Committee received and considered an update from management on progress in respect of the ongoing development of the
Groups enterprise risk management framework, which included detailed reports identifying the key risks at Divisional and Group level and the related mitigation steps. The Committee also considered an annual report on the assessment of risk
management and internal control systems. This had regard to all material controls, including financial, operational and compliance controls that could affect the Groups business. Further details in relation to the Groups risk management
and internal control systems are set out on page 105. External Auditors Ernst & Young have been the Groups auditors since 1988. In last years report, I informed shareholders that the Committee
had deferred making a decision on the timeframe for putting the external audit out to tender until the finalisation of EU legislation on the reform of the audit sector. This EU legislation, which includes a requirement for mandatory auditor rotation
and will necessitate, in the case of CRH, an audit tender by the end of 2020, was enacted in June 2014. However, taking into account the differing requirements of the EU legislation and the 2012 Code (the current provision in the 2012 Code which
would require a tender process in 2015 remains in place), and the organisational change in Europe (see page 16), the Committee has determined that it is not in the best interests of the Group to carry-out a tender at this time. The Committee will
continue to review this position on an ongoing basis. In the interim, the Committee has again recommended to Board that the continuance in office of Ernst & Young should be subject to a non-binding
 advisory vote at the 2015 Annual General Meeting. Further details in relation to the external auditors, including information on how auditor objectivity and independence are maintained and how the effectiveness
of the external audit is assessed, are included on pages 100 and 101. Audit Committee Effectiveness and Priorities for 2015 During 2014 the Committee, together with the Finance Director and Company Secretary, carried out a review of the operation of the Committee.
This involved an assessment of the Committees primary role and responsibilities, training arrangements for Committee members, the time allocated for consideration of key issues, the format and content of the information provided to the
Committee and the priorities for 2015 and onwards. A number of helpful recommendations resulted from the process which I believe will further improve the efficiency and effectiveness of the Committee. The key areas of focus for the Committee in 2015 will be on internal control, external audit planning, IT governance, cyber security and risk management. Ernst Bärtschi Audit Committee Chairman






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Corporate Governance Report
|continued





Audit Committee Members The biographies of the members of the Audit Committee are set out on pages 87 to 89. The tenure of each Committee member is as follows:    E.J. Bärtschi

3 yearsH.A. McSharry

3 yearsH. Th. Rottinghuis

0.75 years   Mr. P.J. Kennedy joined the Committee with effect from 25 February 2015. Mr. E.J. Bärtschi has been designated by the Board as the Committees Financial Expert. The Committee reviewed its Terms of Reference in December 2014 and determined that no changes were required. The Terms of Reference, which were last updated in
December 2013, are available on the CRH website. Committee meetings The Committee met ten times during 20141, with meetings held to coincide with key dates in the financial
reporting and audit cycle. The Finance Director and the Head of Internal Audit generally attend Committee meetings. The external auditors, Ernst & Young, attend the majority of meetings and have direct access to the Chairman of the
Committee. The Group Chairman, Chief Executive and other senior finance personnel attend meetings (or for particular agenda items) at the invitation of the Committee. During 2014, the Committee met with the Head of Internal Audit, and separately
with the external auditors, in the absence of management. A typical calendar of meetings, which includes a general outline of the main agenda items, is set out in table 8 on page 100. In February each year, the Chairman of the Committee formally reports to the Board on how the Committee has discharged its responsibilities in respect of the
prior financial year. Internal Audit The Head of Internal Audit attends the majority of the meetings of the Audit Committee. The Committee agrees the Internal Audit strategy, its charter and
the annual workplan, which is developed on a risk-based approach.  1
Attendance by non-independent Directors and management is by invitation only.


Areas identified for focus during the 2014 Audit Planning Process

Table 7Area of Focus

Audit Committee ActionImpairment of goodwill

For the purposes of its annual
impairment testing process, the Group assesses the recoverable amount of each of CRHs cash-generating units (CGUs  see details in note 14 to the Consolidated Financial Statements) based on a value-in-use computation. The annual goodwill
impairment testing was conducted by management and papers outlining the methodology and assumptions used in, and the results of, that assessment were presented to the Audit Committee. Following its deliberations, the Audit Committee
was satisfied that the methodology used by management (which was consistent with prior years) and the results of the assessment, together with the disclosures in note 14, were appropriate.
 A separate assessment was carried out in 2014 in respect of the business units identified in 2013 for
divestment as part of the Group- wide portfolio review initiated in November of that year. A total impairment charge of 683 million (of which
315 million related to goodwill) was recorded in the 2013 Consolidated Financial Statements. The valuation of each business unit (based on the estimated fair value less costs of disposal) at
year-end 2013 was reassessed in 2014 on a standalone CGU basis. The revised valuations were then compared with the carrying value of each business. The Audit Committee reviewed and considered the methodology used by management in the
reassessment process and was satisfied that it was appropriate.Impairment of property, plant and   equipment and financial assets

In addition to the goodwill
impairment testing process discussed above, the Group also annually assesses the need for impairment of other non-current assets (property, plant and equipment and financial assets) as and when indicators of impairment exist. The Audit
Committee considered the methodology used by management in that process and was satisfied that it was appropriate.Divestments  appropriate application of IFRS 5Non-current Assets Held for Sale and Discontinued
Operations

In 2013, the Group announced
that it had identified a number of business units for divestment globally. None of these businesses met the held for sale criteria at 31 December 2013. However, the status of the businesses identified for divestment evolved during 2014
and those businesses which met the held for sale criteria at 31 December 2014 have been reclassified as such in the Consolidated Financial Statements (see note 4 to the Consolidated Financial Statements for more details). Following
detailed discussions with management and Ernst & Young, the Audit Committee was satisfied that the treatment in 2014 was appropriate.Contract revenue recognition

IAS 11 Construction Contracts requires revenue and
expenses to be recognised on uncompleted contracts, with the underlying principle that, once the outcome of a long-term construction contract can be reliably estimated, revenue and expenses associated with that contract should be recognised by
reference to the stage of completion of the contract activity at the balance sheet date. If it is anticipated that the contract will be loss-making, the expected loss must be recognised immediately. Following discussions with management and Ernst
& Young, the Audit Committee was satisfied that contract revenue recognition was not a material issue for the Group in 2014 as the majority of contracts were completed within the financial year.


LOGO






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LOGO


Corporate Governance Report| continued  Typical Audit Committee Calendar

Table 8Meeting

Activity

Attendees by invitation(in addition to the Finance Director and the Head
of Internal Audit)February

  Consideration of the financial
statements (including the report from the external auditors on Integrated Audit Results and Communications) 
  Approval of external audit fee 
  Annual review of external auditor independence
   Annual assessment of risk management and
internal control systems    Approval of
Internal Audit workplan    Review of reports
on the operation of the CRH Code of Business Conduct, the Competition/Anti-trust Compliance Code and the arrangements in place to enable employees to raise concerns, in confidence, in relation to possible wrongdoing in financial reporting or other
matters    Enterprise Risk Management
Review

Chief Executive and executives responsible for the relevant areasMarch

  Review of Annual Report on Form 20-F

Senior
finance personnelMay

  Review of interim management statement1

Group
Chairman and Chief ExecutiveJune

  Meeting with Finance Director,
Europe    Cyber Security Update

Senior
Europe finance personnelJuly

  Preliminary consideration of interim
results    Approval of the external audit
plan    Updates on accounting and auditing
developments    Update on Internal Audit
work/activities    Annual review of Committee
effectiveness    Enterprise Risk Management
Review

Chief Executive and executives responsible for the relevant areasAugust

  Review of interim results
announcement

Group
Chairman and Chief ExecutiveSeptember

  Meeting with the Chief Financial Officer
for the Americas    Preliminary review of
goodwill impairment and sensitivity analysis  
 Cyber Security Update

Senior Americas finance personnelOctober

  Enterprise Risk Management Review
   Preliminary review of interim management
statement    Pensions Update

Executives responsible for the relevant areasNovember

  Review of interim management statement1

Group
Chairman and Chief ExecutiveDecember

  Review of outcome of goodwill impairment
and sensitivity analysis    Update on Internal
Audit work/activities    Enterprise Risk
Management Review    Approval of non-audit
fees provided by external auditors    Review
of the Committees performance and Terms of Reference

Senior finance personnel1   A Committee of the Group Chairman, Audit Committee Chairman, Chief Executive and Finance Director are
authorised from time to time to review and approve the release of interim management statements.


The Head of Internal Audit reports to the Audit Committee on the findings of
internal audit reviews and related follow-ups and the outcome of control testing in connection with Section 404 of the Sarbanes-Oxley Act 20022. In recent years, there has been a significant increase in the resources allocated to IT Audit. The Committee meets regularly with the senior IT Audit Manager to
discuss IT Audit strategy, the key areas of focus and agrees the annual IT Audit workplan. Assessments of the Internal Audit function have been carried out
periodically by management and validated by an independent third party assessor. An external assessment, which principally involved a series of interviews with key stakeholders throughout the organisation, including the members of the Audit
Committee, was commenced in December 2014. The results of that assessment will be presented to the Audit Committee for consideration in the first half of 2015. Risk management and internal controls The Board has delegated responsibility for monitoring the effectiveness of the Groups risk management and internal control systems to the Audit
Committee. Further details in relation to the Committees work in this area are set out in the section on Risk Management and Internal Controls on page 105. External Auditors There are no
contractual obligations which act to restrict the Committees choice of external auditor. The Committee periodically considers the risk of withdrawal by Ernst & Young from the market and the potential impact on the Group, were that
eventuality to materialise. The Audit Committee has put in place safeguards to ensure that the independence of the audit is not compromised. Such
safeguards include:  
seeking confirmation from the external auditors that they are, in their professional judgement, independent from the Group;  
obtaining from the external auditors an account of all relationships between the auditors and the Group;   2
A copy of Section 404 of the Sarbanes-Oxley Act 2002 can be obtained from the US Securities and Exchange Commissions website www.sec.gov.






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Corporate Governance Report| continued  LOGO 
monitoring the Groups policy prohibiting the employment of former staff of the external auditors, who were part of the CRH audit team, in senior management positions with the Group until two years have elapsed
since the completion of the audit;  
monitoring the number of former employees of the external auditors currently employed in senior positions in the Group and assessing whether those appointments impair, or appear to impair, the external auditors
judgement or independence;  
considering whether, taken as a whole, the various relationships between the Group and the external auditors impair, or appear to impair, the auditors judgement or independence;  
reviewing the economic importance of the Group to the external auditors and assessing whether that importance impairs, or appears to impair, the external auditors judgement or independence. The Group external audit engagement partner is replaced every five years and other senior audit staff are rotated every seven years. The Group has a policy governing the conduct of non-audit work by the auditors1. The policy, which was
updated in 2012, is available on the CRH website. Under the policy, the external auditors are prohibited from performing services where they:  
may be required to audit their own work;  
participate in activities that would normally be undertaken by management;  
are remunerated through a success fee structure; and  
act in an advocacy role for the Group.
 Other than the above, the Group does not impose an automatic ban on the external auditors undertaking non-audit
work. The external auditors are permitted to provide non-audit services that are not, or are not perceived to be, in conflict with auditor independence or prohibited by Rule 2-01 of SEC Regulation S-X, provided they have the skill and competence to
carry out the work and are considered by the Committee to be the most appropriate party to undertake such work in the best interests of the Group. The
engagement of the external auditors to provide any non-audit services must be pre-approved by the Audit Committee or entered into pursuant to pre-approval policies and procedures established by the Committee. The pre-approval policy specifies
the services that are prohibited and the services which have general pre-approval. The Committee has delegated to the Finance Director responsibility for confirming whether a service, which has general pre-approval, can be provided by
Ernst & Young. In addition, Internal Audit reviews the pre-approval process to ensure that it is robust in addressing the requirements of the PCAOB and does not impinge on Ernst & Youngs independence. The Finance Director
reports regularly to the Committee on services which have been approved. In 2014, the external auditors provided a number of audit-related services,
including Sarbanes-Oxley Section 404 attestation, and non-audit services, including due diligence services associated with proposed acquisitions and disposals. Ernst & Young were also engaged during 2014 in a number of jurisdictions in
which the Group operates to provide help with local tax compliance, advice on taxation laws and other related matters; assignments which typically involve relatively small fees. The Audit Committee is satisfied that the external
auditors knowledge of the Group was an important factor in choosing them to provide these services. The Committee is also satisfied that the fees paid to Ernst & Young for non-audit work, which amounted to
   1
The term of any general pre-approval is 12 months from the date of pre-approval.


11% of the total fee in 2014, did not
compromise their independence or integrity. Details of the amounts paid to the external auditors during the year for audit and other services are set out in note 3 to the Consolidated Financial Statements on page 150. The Audit Committees primary means of assessing the effectiveness of the external audit process is by monitoring performance against the agreed
audit plan. In addition, each year the Committee considers (i) the experience and knowledge of the Ernst & Young audit team; (ii) the results of post-audit interviews with management and the Audit Committee Chairman;
(iii) the transparency reports issued under EU regulations by Ernst & Young Ireland; and (iv) where applicable, relevant reports by regulatory bodies on the performance of Ernst & Young. These annual procedures are
supplemented by periodic formal reviews of the performance of Ernst & Young, the most recent of which took place in late 2014. The 2014 review captured the views of relevant stakeholders across the Group and members of the Committee. The
preliminary results indicated a high level of satisfaction with Ernst & Young and the services provided by them to CRH. The Audit Committee will consider a full report on the findings and recommendations arising from the review in
the first half of 2015.


LOGO






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Governance Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 
|The Nomination & Corporate
Governance Committee consists of four non-executive Directors. 
The primary responsibilities of the Committee are: 
  regularly reviewing the size, structure and composition (including skills, knowledge,
experience and diversity) of the Board and making recommendations to the Board regarding any changes; 
  giving consideration to succession planning for Directors and senior
executives; 
  identifying and recommending candidates to fill Board vacancies;
   in respect of the
appointment of a chairman, preparing a job specification including the time commitment expected; 
  keeping under review the leadership needs of the organisation;
   approving the terms
of reference for external board evaluations;    keeping under review corporate governance developments with the aim of ensuring that CRHs governance policies and practices continue to be in line with best practice;
   ensuring that the
principles and provisions set out in the 2012 Code (and any other governance code that applies to the Company) are observed; 
  reviewing the disclosures and statements made in the Corporate Governance Report to
shareholders.  The responsibilities of the Nomination &
Corporate Governance Committee are set out in full in its Terms of Reference, which are available on the CRH website, www.crh.com. |  |  |  | LOGO |  | Chairmans overview
 Board Renewal
The Nomination & Corporate Governance Committee regularly reviews the Boards skill mix, experience and tenure in order that the renewal
process is orderly and planned. A skills matrix has been developed to aid this process and is used by the Committee. During 2014, and to date in 2015, the Committee identified and recommended to the Board that the following individuals be appointed
as non-executive Directors: 
    Pat Kennedy, appointed with effect from 1 January 2015; and
     Lucinda Riches,
appointed with effect from 1 March 2015.  The search criteria for these
appointments included candidates with a Chief Executive or senior management background who had general industry, emerging markets and, in the context of recent and impending Board retirements, finance, investment banking or private equity
experience.  Biographies for Pat Kennedy and Lucinda Riches are included on pages 88 and
89. The Committee worked with Korn/Ferry in relation to the appointment of Lucinda. Korn/Ferry has no other connection with the Company. We did not use the services of a recruitment agency in relation to the appointment of Pat; he had been
identified as a candidate for a non-executive Director a number of years ago. At that time he was Executive Chairman of SHV Holdings, a large family owned multi-national based in the Netherlands. We remained in contact with him and when he retired
from his executive role at SHV he met with all of the current members of the Nomination & Corporate Governance Committee and a number of other Board members. He brings to CRH wide experience in a range of industries, emerging markets
and the provision of private equity. Lucinda has significant experience in equity and capital markets both in London and New York. While she worked for the majority of her career up to 2007 in UBS, the Companys broker, the Committee is
satisfied that no issues of independence arise. |  | 
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Ernst Bärtschi was appointed to the Board in 2011 and Heather Ann McSharry was appointed in 2012. They completed their first three year
terms as non-executive Directors in November 2014 and February 2015 respectively. Following a performance review, on the recommendation of the Committee, the Board has asked Ernst and Heather Ann to each continue on the Board for a further three
year term.  Following the appointment of Lucinda Riches, female Directors will represent
25% of the Board after the conclusion of the 2015 Annual General Meeting. The Nomination & Corporate Governance Committee will continue to retain gender diversity as a key factor to consider in all Board appointments for the
foreseeable future.  Board Committees / Senior Independent
Director On the recommendation of the Nomination & Corporate Governance Committee, the Board has appointed Don McGovern as
Chairman of the Remuneration Committee, with effect from March 2015. Don succeeds Dan OConnor, who will remain on the Committee until his retirement at the conclusion of the 2015 Annual

General Meeting. Don also succeeds Dan as Senior Independent Director. A summary of recent changes to the Boards Committees are set out
in table 10 below.  Voting at General
Meetings The Committee reviewed the voting outcome at the 2014 Annual General Meeting and concluded that there was no issue or pattern in voting
which was unexplained or warranted discussion with individual shareholders.  Nicky
Hartery Nomination & Corporate Governance Committee Chairman  Summary of Board Committee Changes

Table 10Acquisitions

Audit

Finance

Nomination

RemunerationErnst
Bärtschi

-

M (Ch)

D

-

-John Kennedy

D

-

D

o

oPat Kennedy

D

D

-

-

-Albert Manifold

M

-

o

-

-Don McGovern

-

o

-

D

D(Ch)Heather Ann 
McSharry

-

M

D

-

-Dan OConnor

-

o

-

M

M (prev. Ch)Henk Rottinghuis

D

M

-

-

-Lucinda
Riches

-

-

-

D

D  D=
Appointed to committee;o= ceased to be a committee member; (Ch) = committee Chairman; -= not applicable or no change;M= continuing member


LOGO






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LOGO


Corporate Governance Report| continued  Nomination & Corporate Governance Committee Members The biographies of the members of the Nomination & Corporate Governance Committee are set out on pages 87 to 89. The tenure of each Committee member is as follows:    W. P. Egan

7.5 yearsN. Hartery

10.5 yearsD. McGovern

0.25 yearsD. OConnor

2.5 years   Ms. L. Riches joined the Nomination & Corporate Governance Committee following her appointment to the Board on 1 March 2015. The factors taken into account by the Nomination & Corporate Governance Committee in considering the composition of the Board are set out
in the policy for Board renewal which is detailed on page 93. The Committee reviewed its Terms of Reference in December 2014 and determined that no changes
were required. The Terms of Reference, which were last updated in December 2013, are available on the CRH website. Remuneration Committee The Directors Remuneration Report on pages 108 to 131 contains an overview of the responsibilities and activities of the Remuneration
Committee during 2014. Under its Terms of Reference, the Remuneration Committee must be made up of at least three members, all of whom must be
independent non-executive Directors. Members of the Committee can serve for up to a maximum of three terms of three years. The Group Chairman may be a member of the Committee provided he was independent on appointment as Chairman and the Board
 continues to consider him to be independent. Only members of the Committee have the right to attend Committee
meetings. However, other individuals such as the Chairman, if not a member of the Committee, the Chief Executive, the Group Human Resources and Talent Development Director and external advisers may be invited to attend for all or part of any meeting
as and when appropriate. The Chief Executive is fully consulted about remuneration proposals. Remuneration Committee Members The biographies of the members of the Remuneration Committee are set out on pages 87 to 89. The tenure of each Committee member is as follows:    W. P. Egan

7.5 yearsN. Hartery

10.5 yearsD. McGovern

0.25 yearsD. OConnor

2.5 years   Ms. L. Riches joined the Remuneration Committee following her appointment to the Board on 1 March 2015. The Committee reviewed its Terms of Reference in December 2014 and determined that no changes were required. The Terms of Reference, which were last updated in
December 2013, are available on the CRH website. Acquisitions Committee Acquisitions Committee Members The
biographies of the members of the Acquisitions Committee are set out on pages 87 to 89.
 The tenure of each Committee member is as follows:    N. Hartery

2.5 yearsM. Carton

4.5 yearsU-H. Felcht

3.0 yearsJ.W. Kennedy

0.5 yearsA. Manifold

6.0 years   Mr. P. Kennedy and Mr. H. Rottinghuis were appointed to the Committee on 25 February 2015. The attendance at Acquisitions Committeemeetings is set out in table 11 below. Role and Responsibilities The
Acquisitions Committee has been delegated authority by the Board to approve acquisitions and disposals and large capital expenditure projects up to agreed limits. Finance Committee Finance
Committee Members The biographies of the members of the Finance Committeeare set out on pages 87 to 89. The tenure of each Committee member is as follows:    N. Hartery

2.5 yearsM. Carton

4.5 yearsU-H. Felcht

7.5 yearsJ.W. Kennedy

0.5 years   Mr. E.J. Bärtschi and Ms. H.A. McSharry were appointed to the Committee on 25 February 2015. The attendance at Finance Committeemeetings is set out in table 11 below. Role and Responsibilities The Finance
Committee is responsible for:  
advising the Board on the financial requirements of the Group and on
   Attendance at Board and
Board Committee meetings during the year ended 31 December 2014


Table 11Board

Acquisitions

Audit

Finance

Nomination

RemunerationNo. of Meetings

No. of Meetings

No. of Meetings

No. of Meetings

No. of Meetings

No. of MeetingsTotal

Attended

Total

Attended

Total

Attended

Total

Attended

Total

Attended

Total


AttendedE.J. Bärtschi

8

8





10

10M. Carton

8

8

8

8





7

7W.P. Egan

8

7













7

7

8


8U-H. Felcht

8

7

8

8





7

7N. Hartery

8

8

8

8





7

7

7

7

8


8J.M. de Jong*

2

2

1

1





2

2J.W. Kennedy

8

8

2

2









5

5

7


7D.A. McGovern, Jr.

8

8





10

10H.A. McSharry

8

8





10

10A. Manifold

8

8

8

8





7

7D.N. OConnor

8

8





5

5





7

7

8


8H. Th. Rottinghuis**

8

8





5

4M.S. Towe

8

8*   Retired May 2014** Appointed to Board February 2014Note: See summary of Board Committee changes in table 10 on page 103.






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Corporate Governance Report| continued  appropriate funding arrangements;  
considering and making recommendations to the Board in relation to the issue and buy-back of shares and debt instruments and on the Groups financing arrangements;  
considering and making recommendations to the Board in relation to dividend levels on the Ordinary Shares;  
keeping the Board advised of the financial implications of Board decisions in relation to acquisitions;  
assisting management, at their request, in considering any financial or taxation aspect of the Groups affairs; and  
reviewing the Groups insurance arrangements. Risk Management and Internal Control The Board has delegated responsibility for the monitoring of the effectiveness of the Groups risk management and internal control systems
to the Audit Committee1. Such systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and, in the case of internal control systems, can
provide only reasonable and not absolute assurance against material misstatement or loss. The Consolidated Financial Statements are prepared subject to
oversight and control of the Finance Director, ensuring correct data is captured from Group locations and all required information for disclosure in the Consolidated Financial Statements is provided. An appropriate control framework has been put in
place around the recording of appropriate eliminating journals and other adjustments. The Consolidated Financial Statements are reviewed by the CRH Financial Reporting and Disclosure Group prior to being reviewed by the Audit Committee and
approved by the Board of Directors. The Directors confirm that the Groups ongoing process for identifying, evaluating and managing its principal
risks and uncertainties (as outlined on pages 52 to 63) is in accordance with the updated Turnbull guidance (Internal Control: Revised Guidance for Directors on the Combined Code) published in October 2005. The process has been in place
throughout the accounting period and up to the date of approval of the Annual Report and financial statements. Group management has responsibility for
major strategic development and financing decisions. Responsibility for operational issues is devolved, subject to limits of authority, to product group and operating company management. Management at all levels is responsible for internal control
over the business functions that have been delegated. This embedding of the system of internal control throughout the Groups operations ensures that the organisation is capable of responding quickly to evolving business risks, and that
significant internal control issues,
 should they arise, are reported promptly to appropriate levels of management. During the year, the Board and Audit Committeereceived, on a regular basis, reports from management on the key risks to the business and the
steps being taken to manage such risks. They also considered whether the significant risks faced by the Group were being identified, evaluated and appropriately managed, having regard to the balance of risk, cost and opportunity. In addition, the
Audit Committee met with internal auditors on a regular basis and satisfied itself as to the adequacy of the Groups internal control system; met with the Chairman of the Remuneration Committee to ensure that the Groups
remuneration policies and structures were appropriate and in line with the Groups risk tolerance; and reviewed the principal risks and uncertainties outlined on pages 52 to 63. The Audit Committee also met with, and received reports
from, the external auditors. The Chairman of the Audit Committee reported regularly to the Board on all significant issues considered by the Committee and the minutes of its meetings were circulated to all Directors. The Directors confirm that, in addition to the monitoring carried out by the Audit Committee under its Terms of Reference, they have reviewed the
effectiveness of the Groups risk management and internal control systems up to and including the date of approval of the financial statements. This had regard to all material controls, including financial, operational and compliance controls
that could affect the Groups business. Managements Report on Internal Control over Financial Reporting In accordance with the requirements of Rule 13a-15 of the US Securities Exchange Act, the following report is provided by management in respect of the
Companys internal control over financial reporting. As defined by the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of, the Companys principal executive
and principal financial officers, or persons performing similar functions, and effected by the Companys Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of the Consolidated Financial Statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:  
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;  
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated Financial Statements in accordance with generally accepted accounting principles,
 and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and  
Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the Companys assets that could have a material effect on the Consolidated Financial
Statements. Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in
Rules 13a-15(f) and 15d-15(f) under the US Securities Exchange Act. Our internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our Companys published
Consolidated Financial Statements for external purposes under generally accepted accounting principles. In connection with the preparation of the
Companys annual Consolidated Financial Statements, management has undertaken an assessment of the effectiveness of the Companys internal control over financial reporting as of 31 December 2014, based on criteria established in
Internal Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organisations of the Treadway Commission. As permitted by the
Securities and Exchange Commission, the Company has elected to exclude an assessment of the internal controls of acquisitions made during the year 2014. These acquisitions, which are listed in note 30 to the Consolidated Financial Statements,
constituted 0.7% of total assets and 1.2% of net assets, as of 31 December 2014 and 0.6% and 0.8% of revenue and Group profit for the financial year, respectively, for the year then ended. Managements assessment included an evaluation of the design of the Companys internal control over financial reporting and testing of the operational
effectiveness of those controls. Based on this assessment, management has concluded and hereby reports that as of 31 December 2014, the Companys internal control over financial reporting is effective. Our auditors, Ernst & Young, a registered public accounting firm, who have audited the Consolidated Financial Statements for the year ended
31 December 2014, have audited the effectiveness of the Companys internal controls over financial reporting. Their report, on which an unqualified opinion is expressed thereon, is included on page 134. Changes in Internal Control over Financial Reporting During 2014, there has been no change in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15
that occurred during the period covered by this Annual Report that
   1In accordance with Regulation 91(6)(b) of the European Communities (Statutory Audits) (Directive 2006/43)
Regulations 2010.


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Corporate
Governance Report| continued







LOGO


has materially affected, or is reasonably likely to materially affect, our internal control over financial
reporting. Evaluation of Disclosure Controls and Procedures Management has evaluated the effectiveness of the design and operation of the disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) as
of 31 December 2014. Based on that evaluation, the Chief Executive and the Finance Director have concluded that these disclosure controls and procedures were effective as of such date at the level of providing reasonable assurance. In designing and evaluating our disclosure controls and procedures, management, including the Chief Executive and the Finance Director, recognised that any
controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgement in evaluating the cost-benefit
relationship of possible controls and procedures. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have
been detected. Compliance & Ethics The Group Compliance & Ethics (C&E) programme continues to develop in scope and reach. The structure of the C&E organisation was realigned in
2014 to serve the new CRH Europe organisation. A CRH Europe Head of C&E was appointed from the existing Compliance pool. Business Unit Compliance Coordinators (BUCCs) were also appointed for Heavyside East, Heavyside West, Lightside and
Distribution and a European Compliance Officer was appointed to assist the European Head of C&E. CRHs Code of Business Conduct1 (COBC) and related policies were updated and approved by the Board and the C&E teams primary focus since then has been to ensure all relevant employees receive appropriate training. In the
current training cycle over 32,000 employees have participated in COBC training and a further 11,000 have also undertaken advanced instruction on competition law and anti-bribery, corruption and fraud. In addition, our development teams and procurement teams have received appropriate instruction on both our C&E Mergers, Acquisitions and Joint Venture Due
Diligence Programme and our Ethical Procurement Code. Our Supplier Code of Conduct was developed to communicate our minimum Corporate Social Responsibility requirements to existing and new suppliers to the Group and to outline how we ensure
compliance with these requirements. Similar procedures have been developed for any engagements


Investor Relations Activities

Table 12Formal Announcements,including the release of the annual and interim results and the issuance of interim management statements. These announcements are typically accompanied by presentations
and webcasts or conference calls.Investor Roadshows,typically held following the release of formal announcements, provide an opportunity for the management team to meet existing and/or potential investors in a concentrated
set of meetings.Industry Conferences:Attendance at key sector and investor conferences affords members of the senior management team the opportunity to engage with key investors and analysts.Investor Briefings:In addition to regular contact with investors and analysts during the year, the Company periodically holds capital market days, which include presentations on various
aspects of CRHs operations and strategy and provide an opportunity for investors and analysts to meet with CRHs wider management team.Media Briefings:Each year, the Company provides media briefings on numerous issues.   with business partners. Further guidelines developed during the year include a Competition Law Toolbox 
which gathers into one place various CRH guidelines, policies and notes to help the businesses comply with Competition Law requirements. The following
existing policies are under review;  

The Competition/Antitrust Compliance Code 

The Donations Policy 

The Anti-Fraud Policy The COBC has scored an A rating by New York Stock Exchange Governance
Services and incorporates some welcome new features, including learning aids, an ethical-decision making guide and a clear focus on the core values of the Group: Integrity, Honesty and Respect for the law. It was translated and distributed during
2014 and related training is being migrated to an on-line module. A robust communication plan is in place to complement the training programme. A multi-lingual hotline facility  Speak Up is also available to employees
as a secure channel to report ethical issues that concern them or suspected violations of our Codes. All hotline reports received are fully reviewed and investigated by appropriately qualified personnel. The C&E programme has been integrated into our standard Internal Audit procedures and forms part of an annual management certification process. Its
effectiveness is also regularly reviewed by the C&E function with appropriate oversight from senior management and the Audit Committee. The collective goal is to ensure the message is clearly understood that at CRH there is never a
good business reason to do the wrong thing. Sustainability and Corporate Social Responsibility Sustainability and Corporate Social Responsibility (CSR) concepts are embedded in all CRH operations and activities.
 Excellence in the areas of health & safety, environment & climate change, governance and
people & community is a daily priority of line management. The Groups policies and implementation systems are summarised on pages 47 to 51. During 2014, CRH was again recognised by several leading socially responsible investment
(SRI) agencies as being among the leaders in its sector in these important areas. Communications with Shareholders Communications with shareholders are given high priority and the Group devotes considerable time and resources each year to shareholder engagement. We recognise
the importance of effective dialogue as an integral element of good corporate governance. The Investor Relations team, together with the Chief Executive, Finance Director and other senior executives, meet regularly with institutional shareholders
(each year covering over 50% of shareholder base). Detailed reports on the issues covered in those meetings and the views of shareholders are circulated to the Board after each group of meetings. Table 12 above provides a brief outline of the nature
of the activities undertaken by our Investor Relations team. During 2014, the Chairman, Senior Independent Director and Company Secretary participated in a
number of conference calls with some of the Groups major shareholders in advance of the 2014 Annual General Meeting. The meetings were organised to provide those shareholders with an opportunity to discuss the resolutions on the 2014 Annual
General Meeting agenda and corporate governance matters generally. In addition to the above, major acquisitions are notified to the Stock Exchanges in
accordance with the requirements of the Listing Rules and development updates, giving details of other acquisitions completed and major capital expenditure projects, are issued periodically (typically in January and July each year). In addition, we respond throughout the year to






| | 1 | The Code of Business Conduct is applicable to all Group employees including the Chief Executive and senior financial officers. The Code promotes honest and
ethical conduct; full, fair, accurate, timely and understandable disclosures and compliance with applicable governmental laws, rules and regulations and complies with the applicable code of ethics regulations of the United States Securities and
Exchange Commission arising from the Sarbanes-Oxley Act.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|                                      
|--------------------------------------
|Corporate Governance Report| continued
|                                      
|                                      

correspondence from shareholders on a wide range of issues. The Chief Executive made a presentation to shareholders at the 2014 Annual General Meeting on CRHs businesses. General Meetings The Companys
Annual General Meeting (AGM), which is held in Ireland, affords individual shareholders the opportunity to question the Chairman and the Board. All Directors attended the 2014 AGM. The Notice of the AGM, which specifies the time, date, place and the
business to be transacted, is sent to shareholders at least 20 working days before the meeting. At the meeting, resolutions are voted on by way of a poll using an electronic voting system. The votes of shareholders present at the meeting are added
to the proxy votes received in advance and the total number of votes for, against and withheld for each resolution are announced. This information is made available on the Companys website following the meeting. All other general meetings are called Extraordinary General Meetings (EGMs). An EGM called for the passing of a special resolution requires at least 21 clear
days notice. A quorum for a general meeting of the Company is constituted by five or more shareholders present in person and entitled to vote. The
passing of resolutions at a meeting of the Company, other than special resolutions, requires a simple majority. To be passed, a special resolution requires a majority of at least 75% of the votes cast. Shareholders have the right to attend, speak, ask questions and vote at general meetings. In accordance with Irish company law, the Company specifies record
dates for general meetings, by which date shareholders must be registered in the Register of Members of the Company to be entitled to attend. Record dates are specified in the notes to the notice of a general meeting. Shareholders may exercise their
right to vote by appointing, by electronic means or in writing, a proxy/proxies to vote some or all of their shares. The requirements for the receipt of valid proxy forms are set out in the notes to the notice convening the meeting and in the notes
on the proxy form. A shareholder, or a group of shareholders, holding at least 5% of the issued share capital of the Company, has the right to requisition a general meeting. A shareholder, or a group of shareholders, holding at least 3% of the
issued share capital of the Company, has the right to put an item on the agenda of an AGM or to table a draft resolution for inclusion in the agenda of a general meeting, subject to any contrary provision in Irish company law. Going Concern The Companys
business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategy Review section on pages 34 to 43. The financial position of the Company, its cash flows, liquidity position


and borrowing facilities are described in the Business Performance Review on pages 66 to 76. In addition, notes
20 to 24 to the Consolidated Financial Statements include the Companys objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its
exposures to credit, currency and liquidity risks. The Company has considerable financial resources and a large number of customers and suppliers across
different geographic areas and industries. In addition, the local nature of building materials means that the Groups products are not usually shipped cross-border. Having assessed the relevant business risks, the Directors believe that the Company is well placed to manage these risks successfully, and they have a
reasonable expectation that the Company, and the Group as a whole, have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Consolidated
Financial Statements. Compliance Statement Non-US companies such as CRH are exempt from most of the corporate governance rules of the NYSE. In common with companies listed on the Irish Stock Exchange and
the London Stock Exchange, CRHs corporate governance practices reflect, inter alia, compliance with (a) domestic company law; (b) the Listing Rules of the UK Listing Authority and the Irish Stock Exchange; and (c) the Code,
which is appended to the listing rules of the London and Irish Stock Exchanges. CRH has adopted a robust set of Board governance principles, which reflect
the Code and its principles-based approach
 to corporate governance. Accordingly, the way in which CRH makes determinations of Directors independence
differs from the NYSE rules. The Board has determined that, in its judgement, all of the non-executive Directors are independent. In doing so, however, the Board did not explicitly take into consideration the independence requirements outlined in
the NYSEs listing standards. Shareholder Approval of Equity Compensation Plans The NYSE rules require that shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions to those plans. CRH
complies with Irish requirements, which are similar to the NYSE rules. The CRH Board, however, does not explicitly take into consideration the NYSEs detailed definition on what are considered material revisions.
   The following are available on the CRH website, www.crh.com:

Table 13Corporate Governance section:      Terms of Reference of Acquisitions Committee (amended December
2010)      Terms of Reference of Audit Committee (amended December
2013)      Terms of Reference of Finance Committee (amended February
2004)      Terms of Reference of Nomination & Corporate Governance
Committee (amended December 2013)      Terms of Reference of Remuneration Committee (amended December
2013)      The Memorandum and Articles of Association of the Company      Pre-approval policy for non-audit services provided by the
auditors      Compliance & Ethics statement,
Code of Business Conduct and Hotline contact numbers       The 2014 Remuneration
PolicyInvestors section:      Annual and Interim Reports, the Annual Report on Form 20-F, Interim
Management Statements and copies of presentations to analysts and investors      News releases      Webcast recordings of key investor briefings      General Meeting dates, notices, shareholder circulars, presentations
and poll results      Answers to Frequently Asked
Questions, including questions regarding dividends and shareholder rights in respect of general meetings


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| |  | The Remuneration
Committee consists of four non-executive Directors considered by the Board to be independent. They bring a range of experience of large organisations and public companies, including experience in the area of senior executive remuneration, to enable
the Committee to fulfil its role. Their biographical details are set out on pages 87 to 89. 
The main focus of the Committee is to: 
  determine and agree with the Board the Groups policy on executive
remuneration;  
 seek shareholder approval for the policy at least every three years; 
  ensure that CRHs remuneration structures are fair and responsible; and
   consider and approve
remuneration packages for the executive Directors and the Chairman.  In addition, the Committee:    recommends and monitors the level and structure of remuneration for senior management; and 
  oversees the preparation of this Directors Remuneration Report.
 In considering remuneration levels for executive Directors
particularly, the Committee takes into account remuneration trends across the CRH Group, which has a diverse range of operations in 34 countries, in geographic regions which are often at different stages in the economic cycle.
 Additional details in relation to the Committee, its role
and responsibilities and how it operates are included in the Remuneration Committee section of the Corporate Governance report on page 104. 
The Chief Executive attends meetings except when his own remuneration is being discussed. |  |  |  | Directors Remuneration Report
 LOGO  LOGO  LOGO  LOGO |  | 



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##### Table of Contents

Introduction  LOGO  On behalf of the Remuneration
Committee, I am pleased to introduce the Directors Remuneration Report for the year ended 31 December 2014. The Remuneration Report (excluding the Remuneration Policy summary on pages 126 to 131), will be included on the agenda of the
2015 Annual General Meeting for shareholder consideration.  The purpose of CRHs
Remuneration Policy, which was approved by shareholders at the 2014 Annual General Meeting, is to provide an appropriate framework to support the creation of value for shareholders over the longer term, the attraction and retention of key executives
and succession planning, without paying more than is necessary. The full Remuneration Policy is available on the CRH website, www.crh.com. 
2014 Performance 
2014 was a year of growth and progress in terms of our aim of restoring margins and returns to peak levels in the coming years.

Recent Remuneration Snapshot: 
  Updated Remuneration Policy approved at 2014 AGM
   New performance share plan adopted at
2014 AGM    Incentive payout
levels linked to stretching performance criteria 
  Strong support from shareholders for policy and implementation
 
In addition, there was significant achievement regarding the Groups multi-year divestment programme of 1.5 billion to 2.0 billion, with
proceeds from disposals completed in 2014 of 0.35 billion since the programme was announced in August 2014. 
Overall, CRHs strong balance sheet and cash generation capability leave the Company well positioned to take advantage of value-creating acquisition
opportunities.  In the context of the Groups performance in 2014, and performance
against individual and strategic goals, the Remuneration Committee has determined that the annual bonus levels for 2014 should be set at the maximum level of 150% for each of the executive Directors.
 In accordance with CRHs Remuneration Policy, approved by shareholders at the 2014
Annual General Meeting, 25% of the 2014 bonus will be deferred into shares for a period of three years.

The basis for each bonus award is set out in detail on page 112. In line with evolving best practice, we have
increased the level of disclosure in relation to payout levels to provide shareholders with a greater level of insight into the approach for determining bonus payments. We have also disclosed the targets for the bonus payments in respect of 2013 as
these are no longer considered to be commercially sensitive. Similarly, the Remuneration Committee intends that the targets for the 2014 bonus plan will be disclosed in the 2015 Directors Remuneration Report.
 The 2014 Remuneration Policy also made provision for the Remuneration Committee to
introduce clawback provisions, in addition to the malus2 provisions already in place for the annual bonus plan and the long-term performance share plan. The Committee has decided, in accordance
with the provisions of the 2014 UK Corporate Governance Code, to introduce clawback provisions for the cash element of the annual bonus plan for 2015 and onwards. 
The long-term awards made under the 2006 Performance Share Plan and the 2010 Share Option Scheme made in 2012 (each with a three year performance period 2012 -
2014) did not meet the relevant performance criteria required to vest and, consequently, those awards lapse in full. Further details are set out on pages 114 and 115. 
Executive Director Salaries 
As reported in the 2013 Directors Remuneration Report, following consideration of the scope of the Finance Directors responsibilities and her
performance since being appointed in 2010, the Committee decided that Maeve Cartons salary should be increased, subject to continuedSales

+ 5%

Return on Net Assets

+150bpsEBITDA (as defined)*

+11%

Operating Cash 
Flow

+23%EPS

+33%1

Net Debt

-16%  *
Defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.  1
Based on adjusted 2013 EPS (excluding impairments and the related tax impact).  2
Malus is a mechanism whereby the Remuneration Committee may decide not to release deferred share or performance share plan awards if an unusual event such as a material financial misstatement occurred, significant
losses were incurred or the Company suffered significant reputational damage.


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##### Table of Contents

LOGO


Directors Remuneration Report |continued  individual and business performance, to 675,000 in two steps. Her salary increased to
625,000 (+9.7%) in 2014. The Remuneration Committee has determined that it is appropriate to make the second increase (to 675,000) in respect of 2015 (+8%). The Committee has also reviewed the salary levels for Albert Manifold and Mark Towe and determined that increases of 7.5% to 1,290,000
and 3% to US$1,420,000 respectively are appropriate. The increase for Albert Manifold reflects the speed with which he has developed in the Chief Executive role, demonstrated by the progress in the delivery of strategy and the improvement in returns
and margins referred to above. The Remuneration Committee also noted that the salary of Albert Manifold remains below the level of 1,450,000 awarded to the Chief Executive of CRH in 2008. The increase for Mark Towe is in line with
increases across the general employee population in the United States. 2015 Awards under the 2014 Performance Share Plan Awards under the 2014 Performance Share Plan in 2015 will be made at the same level as in 2014 and will continue to be based
on TSR and adjusted cash flow. The adjusted cash flow targets have not yet been set by the Remuneration Committee and will be set when the outcome of the proposed acquisition of assets from Lafarge S.A. and Holcim Ltd is known. As in previous
years, the targets will be demanding and aligned to value creation for shareholders, with significant stretch ensuring that only exceptional performance will result in maximum payout. Remuneration Policy As referred to in the Chairmans introduction to the Annual Report on page 2, CRH has entered into a binding commitment to acquire
certain assets from Lafarge S.A. and Holcim Ltd for a total enterprise value of 6.5 billion. In the context of this proposed acquisition, the Committee will review the remuneration policy during the
 course of 2015 to ensure it remains appropriate for the needs of the business. Conclusion Shareholders play a crucial
role in the design of appropriate, balanced and fair remuneration structures and, as I will retire from the Board of CRH following the 2015 Annual General Meeting, I would like to thank all those who have engaged with CRH during my tenure as
Remuneration Committee Chairman, for their constructive approach to dialogue with the Company. I have no doubt that my successor, Don McGovern, will benefit from your continued strong support for CRH. Dan OConnor Remuneration Committee Chairman






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##### Table of Contents

Directors Remuneration Report |continued  Annual Statement on Remuneration The following section sets out details of:  
the remuneration paid to Directors in respect of 2014;  
how CRHs remuneration policy will operate for 2015; and  
other areas of disclosure. The Directors Remuneration Report, excluding the Remuneration Policy summary
on pages 126 to 131, will be
 put to shareholders for the purposes of an advisory vote at the Annual General Meeting to be held on 7 May
2015. The Company is not seeking shareholder approval for a revised Remuneration Policy this year and, therefore, we have not included the full policy in
this report. We have, however, included the executive Director and non-executive Director policy tables, as well as details of the Chief Executives service contract as information for shareholders.
 Executive Directors Remuneration received by executive Directors in respect of 2014 Details of individual remuneration for executive Directors for the year ended 31 December 2014, including explanatory notes, are given in table 18 below.
Details of Directors remuneration charged against profit in the year are given in table 49 on page 125 in the Other Disclosuressection.
   Individual remuneration
for the year ended 31 December 2014 (Audited)



Table 18Annual Bonus Plan







RetirementBasic Salary







Cash



Deferred



Long-Term



Benefitsand Fees



Benefits



Element



Shares



Incentives



Expense



Total



Total



Total(a)



(b)



(c)



(c)



(d)



(e) 000



 000



 000



 000



 000



 000



 000



 000



 0002014



2014



2014



2014



2014



2014



2014



2013



2012Executive DirectorsMaeve Carton


625



16



703



234



-



260



1,838



1,412



921Albert Manifold


1,200



39



1,350



450



-



559



3,598



2,088



1,385Mark Towe


1,036



59



1,166



389



-



207



2,857



2,965



1,9832,861



114



3,219



1,073



-



1,026



8,293



6,465



4,289 (a)Basic Salary and Fees:The
background to the increase in Maeve Cartons salary in 2014 is set out on Pages 109 and 110. When he assumed the role of Chief Executive in January 2014, Albert Manifolds salary was set at broadly the same level as the outgoing Chief
Executive. Mark Towes salary increased in US$ terms by 2% in line with general trends in CRH operations in the United States. 
(b)Benefits:For executive Directors these relate principally to the
use of company cars, medical insurance and life assurance and, where relevant, the value of the discount on the grant of options under the Groups 2010 Savings-related Share Option Scheme (see table 38 on page 119) for more details) and the
reimbursement of legal fees in relation to the putting in place of service contracts (see page 129 for more details). 
(c)Annual Bonus Plan:Under the executive Directors
Annual Bonus Plan for 2014, a bonus is payable for meeting clearly defined and stretch targets and strategic goals. The structure of the 2014 plan, together with details of the performance against targets and payouts in respect of 2014, is set out
on pages 112 to 114. 
(d)Long-Term Incentives:In February 2015, the Remuneration Committee
determined that the award made in 2012 under the 2006 Performance Share Plan would lapse as, over the three-year period 2012-2014, CRHs TSR performance was below the median of both the peer group and the Eurofirst 300 Index. The share options
granted in 2012 under the 2010 Share Option Scheme will also lapse in full as the option failed to meet the necessary EPS performance targets. As a result, no long-term incentive award with a performance period ending in 2014 has vested or will
vest. Long-Term Incentive amounts for 2013 reflect the value of vested long-term incentive awards with a three-year performance period ending in 2013. These amounts have been updated to reflect the market value of the shares on the date of vesting,
which for Irish based executives was 21.28 and for the US based executive was 21.505. In the 2013 Directors Remuneration Report the value of the award was estimated based on the three month average share price to 31 December 2013
(see page 92 of the 2013 Annual Report on Form 20-F for more details). The structure of the 2006 Performance Share Plan is set out in table 31 on page 116. The performance criteria for the 2010 Share Option Scheme are set out in table 32 on page
116. 
(e)Retirement Benefits Expense:The Irish Finance Act 2006
effectively established a cap on pension provision by introducing a penalty tax charge on pension assets in excess of the higher of 5 million or the value of individual prospective pension entitlements as at 7 December 2005. This cap was
further reduced by the Irish Finance Act 2011 to 2.3 million and, by the Finance (No. 2) Act 2013, to 2 million. As a result of these legislative changes, the Remuneration Committee has decided that executive Directors who are members of
Irish pension schemes should have the option of continuing to accrue pension benefits as previously, or of choosing an alternative arrangement - by accepting pension benefits limited by the cap - with a similar overall cost to the Group. Maeve
Carton and Albert Manifold chose to opt for the alternative arrangement which involved capping their pensions in line with the provisions of the Finance Acts and receiving a supplementary taxable non-pensionable cash allowance, in lieu of
prospective pension benefits foregone. These allowances are similar in value to the reduction in the Companys liability represented by the pension benefit foregone. They are calculated based on actuarial advice as the equivalent of the
reduction in the Companys liability to each individual and spread over the term to retirement as annual compensation allowances. For 2014 the compensation allowances amount to 259,950 (2013: 187,141; 2012: 174,931) for Maeve
Carton and 559,150 (2013: 290,190; 2012: 288,117) for Albert Manifold.


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##### Table of Contents

LOGO


Directors Remuneration Report| continued  2015 Salaries - Executive
Directors

Table 19Director

2014

2015

% ChangeAlbert Manifold
(Chief Executive)

1,200,000

1,290.000

+7.5%Maeve Carton(Finance Director)

625,000

675,000

+8%Mark Towe(Chief Executive, Oldcastle, Inc.)

US$1,377,000

US$1,420,000

+3%  Basic Salary and Benefits Details of executive Directors salaries for 2015 compared with 2014 are set out in table 19 above. The background to the increases in respect of 2015 are set out in the Remuneration Committee Chairmans introduction on pages 109 and 110. Salary level increases for executive Directors since 2009 are shown in table 14 on page 108. Details in relation to employment-related benefits are set out in note (b) in table 18 on page 111. Annual Bonus Plan A summary of the
structure of CRHs Annual Bonus Plan is set out in table 20 below. 2014 Annual Bonus Outcomes CRHs Annual Bonus Plan for 2014 was based on a combination of financial targets and personal/strategic goals. The specific weightings for each executive
Director are shown in table 21 on page 113. In terms of the relative weighting of the components of the plan, the Committee has increased the focus on returns on net
 assets, with a corresponding reduction in the percentage of the plan based on earnings per share to ensure that
there is sufficient focus on delivering sustainable growth. Indicative performance for each measure is given in tables 22 and 23 on page 113. Specific targets for the 2014 Annual Bonus Plan have not been disclosed in this report as they are
considered by the Board to be commercially sensitive. However, it is intended that Group-related targets for 2014 will be disclosed in the 2015 Directors Remuneration Report. Overall, strong performance against the 2014 Annual Bonus Plan metrics resulted in bonus payments of 150% of salary for Albert Manifold, Maeve Carton and Mark
Towe. In accordance with the Groups remuneration policy, 25% of the bonus amount will be deferred into shares for a period of three years. Deferred Shares are not subject to any additional performance conditions during the deferral period. Similar to 2014, CRHs Annual Bonus Plan for 2013 was based on a combination of financial targets and
  Structure of CRHs
Annual Bonus Plan

Table 20Operation:



80% of awards based on financial measures, such as
profits, cash flow and returns

20% of awards based on personal and strategic goalsPerformance:



50% of maximum bonus awarded for delivering target
performance

Maximum award size of 150% of salary for all executive DirectorsDeferral:



25% of all
bonus awards deferred into shares for three yearsMalus/Clawback:



Malus provisions for deferred share awards to provide
the ability to scale back awards prior to vesting in the event of material misstatement, serious reputational damage or the Company suffering serious losses

In line with the requirements of the 2014 UK Corporate Governance Code, clawback
provisions will apply to the cash element of the Annual Bonus Plan for 2015 awards onwards, for the same events as apply in respect of malus, for a period of three years


personal/strategic goals. Due to
commercial sensitivity, specific targets were not disclosed in the 2013 Directors Remuneration Report. The Remuneration Committee considers that Group-related targets for 2013 have ceased to be commercially sensitive and, accordingly,
these are set out in table 24 on page 114. Indicative performance against Oldcastle targets for 2013 is shown in table 25 on page 114; the actual targets have not been disclosed as it is considered that the information remains commercially
sensitive. Please see table 11 on page 93 of the 2013 Annual Report on Form 20-F for performance in 2013 against personal/strategic measures. The 2015
Annual Bonus Plan will be operated broadly in line with the 2014 Annual Bonus Plan. However, in line with the requirements of the 2014 UK Corporate Governance Code, the Remuneration Committee has decided that, in addition to the malus
provisions already in place, clawback provisions for the cash element of the Annual Bonus Plan will apply for 2015 onwards (see pages 116 and 117 for more details). Share Scheme Awards A summary of share scheme awards made to executive Directors in 2014 is set out in table 27 on page 115.
Details of outstanding performance share awards and share options held by executive Directors are shown in tables 36, 37 and 38 on pages 118 and 119. In
addition to the awards set out in table 27 on page 115, Maeve Carton was granted an option under the Groups 2010 Savings-related Share Option Scheme. Further details in relation to that award are set out in table 38 on page 119. Long-Term Incentives 2014
Performance Share Plan A summary of the structure of CRHs 2014 Performance Share Plan is set out in table 26 on page 115. In 2014, shareholders approved the introduction of the 2014 Performance Share Plan (the 2014 PSP). Following approval by shareholders, awards were
made to the executive Directors, details of which are summarised in table 37 on page 118. It is anticipated that awards in 2015 under the 2014 PSP will be on broadly the same basis as those made in 2014.






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##### Table of Contents

Directors Remuneration Report | continued  2014 Annual Bonus -
Measures and Weightings

Table 21Albert Manifold



Maeve Carton

Mark Towe% of salary



% of salary



% of salaryMeasure

Target

Maximum



Target

Maximum



Target

MaximumCRH EPS

18.75%

37.5%



18.75%

37.5%



15.0%

30.0%CRH Cash Flow(i) Operating Cash Flow

11.25%

22.5%



11.25%

22.5%



-

-(ii) Divestments

11.25%

22.5%



11.25%

22.5%



-

-CRH Return on Net Assets

18.75%

37.5%



18.75%

37.5%



7.5%

15.0%Oldcastle* Group PBIT**

-

-



-

-



15.0%

30.0%Oldcastle Cash Flow(i) Operating Cash Flow

-

-



-

-



15.0%

30.0%(ii) Divestments

-

-



-

-



7.5%

15.0%Personal/Strategic

15.00%

30.0%



15.00%

30.0%



15.0%

30.0%Total

75.0%

150.0%



75.0%

150.0%



75.0%

150.0%*   Oldcastle is the holding company for the Groups
operations in the Americas **  PBIT is defined as earnings before interest and taxes  2014 Annual Bonus -
Achievement against targets*

Table 22Performance achieved relative to targetsMeasure

Threshold**

Target

Maximum





Performanceachieved***

Payout% of maxCRH EPS

























LOGO





78.9c

100%CRH Cash Flow(i) Operating Cash Flow****

























LOGO





1,477m

100%(ii) Divestments

























LOGO





345m

100%CRH Return on Net Assets

























LOGO





7.4%

100%Oldcastle Group PBIT

























LOGO





N/D

100%Oldcastle Cash Flow(i) Operating Cash Flow

























LOGO





N/D

100%(ii) Divestments

























LOGO





N/D

100%*       Specific targets have not been
disclosed as these are deemed commercially sensitive at this time. Target will be disclosed retrospectively when no longer sensitive.
**     0% of each element is earned at threshold.
***    Oldcastle cash flow targets have not been disclosed as it would result in the disclosure of
information which is not generally available and is commercially sensitive. ****  For this purpose, operating cash
flow has been defined as reported internally.  2014 Annual Bonus -
Achievement against Personal/Strategic targets



Table 23Payout% ofDirectors

Strong delivery in relation to:



MaximumAlbert Manifold


Effective leadership of the Groups portfolio review;
continued progress in relation to organisational change in particular in Europe; supporting and mentoring the senior executive team; effective and clear managemnt of investor communications and building up the Groups general communication
capability.



100%Maeve Carton

Continued build up of finance organisation and expansion of
finance roles to support performance management; achievements in relation to succession to ensure a strong pipeline of finance executives; completion of two bond issues in 2014 (including a debut Swiss bond issuance) at the lowest coupons achieved
by the Group; continued build up of Group IT security and project management roles.



100%Mark Towe

Continued input in to the Groups talent management process and supporting newly appointed
Group Human Resources and Talent Development Director; working closely with the Chief Executive to refine succession planning in the Americas; leading the portfolio review process in the Americas.



100%


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##### Table of Contents

LOGO


Directors Remuneration Report|
continued  2013
Annual Bonus - Achievement against Group targets (Albert Manifold, Maeve Carton and Mark Towe)


Table 24 Performance needed for payout atMeasure

Threshold

Target

Maximum

PerformanceAchieved

Payout% of maxCRH EPS

74c

80c

84c

59.5c*

0.0%Operating Cash Flow**

1,075m

1,240m

1,340m

1,204m

52.0%CRH Return on Net Assets

6.0%

6.5%

7.0%

5.9%

0.0%*  Adjusted EPS, excluding the impact of non cash
impairment recorded in 2013.** For this purpose, operating cash flow has been defined as reported
internally.  2013
Annual Bonus - Achievement against Oldcastle targets (Mark Towe)


Table 25 Performance achieved
relative to targetsMeasure

Threshold**

Target



Maximum

Payout            % of maxOldcastle Group PBIT*















LOGO



93.3%Oldcastle Cash Flow















LOGO



92.6%Oldcastle Return on Net Assets















LOGO



93.3%*  PBIT is defined as earnings before interest and
taxes.** 0% of each element is earned at threshold.  75% of each award made in 2014 is subject to a Total Shareholder Return (TSR) performance measure, with
performance being measured against sector peers (see table 30 on page 116). The vesting schedule is shown in table 28 on page 116. The Committee believes that, for a cyclical business such as CRH, TSR is the most appropriate performance measure at
present and is a key measure of the value generated for shareholders. The TSR performance measure will be subject to a financial underpin. This means that
when determining vesting under the 2014 PSP, the Committee will review whether the TSR performance has been impacted by unusual events and whether it is, therefore, an appropriate reflection of underlying performance. In addition, the Committee will
consider EPS performance in the period to ensure that TSR performance was consistent with the objectives of the performance criteria and had not been distorted by extraneous factors. The remaining 25% of each award is subject to a cumulative cash flow metric. This Group financial measure supports dividend delivery, development activity and,
in the context of the Groups 1.5 - 2.0 billion multi-year divestment programme, provides an emphasis on asset/business disposals. The cash flow
 target is based on a cumulative adjusted cash flow figure over three financial years. The definition of cash flow
is adjusted to exclude:  
dividends to shareholders;  
acquisition/investment expenditure;  
share issues (scrip dividend, share options, other);  
financing cash flows (new loans/ repayments);  
back funding pension payments; and  
foreign exchange translation. The Remuneration Committee considers that it is appropriate to make these
adjustments in order to remove items that do not reflect the quality of managements operational performance, or are largely outside of management control. This is to ensure that management remains incentivised to make decisions which are in
the best long-term interests of the business and shareholders. The cumulative adjusted cash flow target for the award made in 2014 under the 2014 PSP are
set out in table 29 on page 116. The adjusted cash flow target for awards in 2015 under the 2014 PSP have not yet been set by the Remuneration
Committee. The target will be set once
 the outcome of the proposed acquisition of assets from Lafarge S.A. and Holcim Ltd is known. The targets will be
demanding with significant stretch ensuring that only exceptional performance will result in a maximum payout. Vested awards will be required to be held
for a further two years post-vesting. 2006 Performance Share Plan The 2006 Performance Share Plan (the 2006 PSP), which was approved by shareholders in May 2006, is tied to TSR over a three year performance period.
It has been replaced by the 2014 PSP (see page 112), which was approved by shareholders at the 2014 Annual General Meeting. Consequently, the last award under the 2006 PSP was made in 2013. Half of each award is assessed against TSR for a group of
global building materials companies (see table 30 on page 116) and the other half against TSR for the constituents of the Eurofirst 300 Index. The
performance criteria for the 2006 PSP are set out in table 31 on page 116. Participants are not entitled to any dividends (or other distributions made) and have no right to vote in respect of the shares subject to the award, until the shares vest. The rules of the 2006 PSP provide that no award, or portion of an award, which






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##### Table of Contents

Directors Remuneration Report| continued   Structure of
the 2014 Performance Share Plan

Table 26Operation:

  Conditional share award
which vests, subject to performance, over a three year period 
  Awards subject to a two year holding period post vestingPerformance:

  75% of awards based on
relative TSR performance compared to key peers (see table 30 on page 116) 
  25% of awards based on cumulative cash flow performance (see table 29 on page 116)
   Maximum award size of 250% of salary for Chief
Executive and 200% of salary for other executive DirectorsMalus/Clawback:

  Malus provisions provide the
Remuneration Committee with the ability to scale back awards up to five years from grant in the event of material misstatement, serious reputational damage or the Company suffering serious losses  has satisfied the TSR performance criteria should be released unless the Remuneration Committee has
confirmed the validity of the TSR performance and reviewed EPS performance to assess its consistency with the objectives of the assessment. In respect of
the award made in 2012 (with a performance period 2012-2014), in February 2015, the Remuneration Committee determined that the award would lapse as, over the three-year period 2012 -2014, CRHs TSR performance was below the median of
both the peer group and the Eurofirst Index. The Companys TSR performance was reviewed by the Remuneration Committees remuneration consultants.
 During 2014, the Remuneration Committee determined that 49% of the award made under the 2006 PSP in 2011
(with a performance period 2011-2013) had vested. Details of the value of that award are set out in table 18 on page 111. Further details are provided in the 2013 Directors Remuneration Report. Details of outstanding awards to Directors under the 2006 PSP are provided in table 36 on page 118. Outstanding awards are subject to the performance conditions
outlined above. 2010 Share Option Scheme At the 2010 Annual General Meeting, shareholders approved the introduction of the Earnings Per Share (EPS) based share option scheme (the 2010
Scheme). Following the approval by


shareholders for the introduction of the 2014 PSP, no further awards will be made under the 2010 Scheme. Consequently, the last award under the 2010 Scheme was
made in 2013. Options were granted at the market price of the Companys shares at the time of grant. The vesting period for options is three years,
with vesting only occurring once an initial EPS performance target has been reached. Awards under the 2010 Scheme were limited to 150% of salary. The
performance criteria for the 2010 Scheme were agreed with the Irish Association of Investment Managers (the IAIM) and are set out in table 32 on page 116. The performance targets were designed to provide for proportionately more vesting
for higher levels of EPS growth. Vesting levels are subject to any reduction which the Remuneration Committee deems appropriate in the context of
the overall results of the Group. The grant of options under the 2010 Scheme made in 2010 and 2011 did not meet the EPS performance criteria set out above
and, accordingly, the options lapsed on the third anniversary of the date of grant. Similarly, the grant of options made in 2012, having failed to meet the appropriate EPS criteria, will lapse in full in April 2015.


LOGO




Summary of Scheme Interests Granted in 2014

Table 27Directors

Scheme

Basis of
award    (% of salary)

Number of    shares

Face value*

Exercise    price

Percentage vesting
at threshold
performance
(% of maximum)

Performance    period
end date

Expected
date of    release2014 PSPAlbert Manifold

(conditional
shares)

250%

142,900

 2,928,021

n/a

25%

31-Dec-16



Feb-20192014 PSPMaeve Carton

(conditional
shares)

200%

59,500

 1,219,155

n/a

25%

31-Dec-16



Feb-20192013 Annual
Bonus**

5%

2,561

 54,000

n/a

n/a

n/a



Mar-2017Mark Towe

(deferred
shares)2014 PSP
(conditional

200%

97,100

1,989,579

n/a

25%

31-Dec-16



Feb-2019shares)*  Face value has been calculated using the share
price at the date of grant for 2014 PSP awards (20.49).** See table 9 on page 93 of the 2013 Annual Report on Form 20-F for the structure of the 2013 Annual Bonus Plan.








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##### Table of Contents



Directors Remuneration
Report| continued







LOGO


Details of outstanding awards to Directors under the 2010 Scheme are provided in tables 38 and 39 on page 119. The Remuneration Committee has discretionary powers regarding the implementation of the rules of the 2010 Scheme. These powers have not been
exercised since the adoption of the 2010 Scheme. 2000 Share Option Scheme At the Annual General Meeting held in 2000, shareholders approved the introduction of a share option scheme (the 2000 Scheme). This scheme was
superseded by the 2010 Scheme referred to above. No awards have been made under the 2000 Scheme since 2009. Details of outstanding awards and the performance criteria for the 2000 Scheme are set out in tables 38 and 39 on page 119. Other employee share plans Maeve Carton
and Albert Manifold also participate in the 2010 Savings-related Option Scheme (Republic of Ireland) (the 2010 SAYE) and in the Groups Irish Revenue approved Share Participation Scheme (the Participation Scheme). The 2010 SAYE is an Irish Revenue approved plan open to all Irish employees. Participants may save up to 500 a month from their net salaries for a fixed
term of three or five years and at the end of the savings period they have the option to buy CRH shares at a discount of up to 15% of the market price on the date of invitation of each savings contract. Details of the outstanding awards of Maeve
Carton and Albert Manifold under the 2010 SAYE are set out in tables 38 and 39 on page 119. The Participation Scheme is open to all employees in Ireland,
and grants can be made to participants up to a maximum of 12,700 annually in CRH shares. Malus and Clawback From 2015 all incentive awards to executive Directors are subject to recovery provisions. Annual bonus awards will be subject to recovery provisions for three
years from the date of payment (cash awards) or grant (deferred awards). Performance Share


2014 Performance Share Plan
(2014 PSP) Metrics3-year TSR* performance compared to peer
group(75% of award)

Vesting Level

Table 28Equal to or greater than 75thpercentile

100%Between 50thand 75thpercentile

Straight line between 25% and 100%Equal to 50thpercentile

25%Below 50thpercentile

0%*  The methodology for calculating TSR assumes all
dividends are reinvested on the ex-dividend date at the closing share price on that day; the open and close price is based on the three month average closing price on the last day before the start of the performance period and the final
day of the performance period respectively.Cumulative Cash Flow 2014 - 2016(25% of award)

Vesting Level

Table 29Equal to or greater than 3.5bn

100%Between 2.9bn - 3.5bn

Straight line between 25% - 100%Equal to 2.9bn

25%Below 2.9bn

0%  Peer Group for TSR Performance Metric for awards under the 2014 PSP
and 2006 PSP

Table 30 Boral

Italcementi

Titan Cement

Additional company included in the 2006 PSP Peer Group:Buzzi Unicem

Kingspan Group

Travis Perkins

Home DepotCemex

Lafarge

Vulcan MaterialsGrafton Group

Martin Marietta Materials

WeinerbergerHeidelberg Cement

Saint Gobain

WolseleyHolcim  2006 Performance Share Plan
(2006 PSP) Metrics

Table 313-year TSR* performance compared
to peer group/Eurofirst 300 Index

Vesting LevelEqual to or greater than 75thpercentile

100%Between 50thand 75thpercentile

Straight line between 30% and 100%Equal to 50thpercentile

30%Below 50thpercentile

0%*  The methodology for calculating TSR assumes all
dividends are reinvested on the ex-dividend date at the closing share price on that day; the open and close price is based on the closing price on the last day before the start of the performance period and the final day of the performance
period respectively.  Share Option Scheme
Metrics

Table 32Compound EPS* Growth
Performance over three yearsAwarded in 2010 & 2011

Awarded in 2012 & 2013

Vesting LevelEqual to or greater than 27.5% p.a.

Equal to or greater than 20% p.a.

100%Between 17.5% and 27.5% p.a.

Between 13% and 20% p.a.

Straight line between 40% and 100%Between 12.5% and 17.5% p.a.

Between 10% and 13% p.a.

Straight line between 20% and 40%Equal to 12.5% p.a.

Equal to 10% p.a.

20%Less than 12.5% p.a.

Less than 10% p.a.

0%*  The EPS figure used for the purposes of the 2010
Scheme is the basic consolidated earnings per share of the Company for the accounting period concerned as shown in the Annual Report issued by the Company for that accounting period.






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|                                         
|-----------------------------------------
|Directors Remuneration Report| continued
|                                         
|                                         





Plan awards will be subject to malus for the three years prior to performance assessment and the two further
years of the holding period. Malus or clawback provisions may be triggered in the event of:  
material misstatement;  
serious reputational damage; or  
the Company suffering serious losses. Retirement Benefit Expense Maeve Carton and Albert Manifold are participants in a contributory defined benefit plan which is based on an accrual rate of 1/60th of salary* for each year of pensionable service and is designed to provide two-thirds of career average salary at retirement for full service. If either Maeve Carton or Albert Manifold leave service
prior to Normal Retirement Age (60) they will become entitled to a deferred pension, payable from Normal Retirement Age, based on the pension they have accrued to their date of leaving. The Finance Act 2006 effectively established a cap on pension provisions by introducing a penalty tax charge on pension assets in excess of the higher of
5 million (in the Finance Act 2011, this threshold was reduced to 2.3 million and reduced further to 2 million by the Finance Act (No. 2) Act 2013) or the value of individual accrued pension entitlements as at
7 December 2005. As a result of these legislative changes, the Remuneration Committee decided that executive Directors should have the option of continuing to accrue pension benefits as previously, or of choosing an alternative
arrangement - by accepting pension benefits limited by the cap - with a similar overall cost to the Group. Maeve Carton and Albert Manifold have opted for an arrangement whereby their pensions are capped in line with the provisions of the Finance
Acts and receive a supplementary taxable non-pensionable cash supplement in lieu of pension benefits forgone. There was, therefore, no additional accrual in 2014. The cash pension supplements for 2014 are detailed in table 18 on page 111. These
supplements are similar in value to the reduction in the Companys


Pension Entitlements - Defined Benefit (Audited)







Table 33Increase in
accrued
personal pension
during 2014
(i)

000






Transfer value
of increase in
dependents
pension
(i)
 
000






Total accrued
personal
pension at
year-end
(ii)
 
000Executive DirectorsAlbert Manifold


-







208







273Maeve Carton


-







29







266 (i)    As noted on page 111, the pensions of Albert Manifold and Maeve Carton have been capped in line
with the provisions of the Irish Finance Acts. However, dependants pensions continue to accrue resulting in Greenbury transfer values which have been calculated on the basis of actuarial advice. These amounts do not represent sums paid out or
due, but are the amounts that the pension scheme would transfer to another pension scheme in relation to benefits accrued in 2014 in the event of these Directors leaving service.
 (ii)    The accrued pensions shown
are those which would be payable annually from normal retirement date.  Pension
Entitlements - Defined Contribution (Audited)






Table
34The
accumulated liablilities related to the unfunded Supplemental Executive Retirement Plans for Mark
Towe are as follows:As at
31 December
2013
 000




2014
contribution
 000




2014
Notional
interest
(iii)
 000




Translation
adjustment
 000




As at
31 December
2014
 000Executive DirectorMark Towe


1,923





194





97





288





2,502 (iii)   Notional interest, which is calculated based on the average bid yields of United States
Treasuryfixed-coupon securities with remaining terms to maturity of approximately 20 years, plus 1.5%, is credited to the above plans.  liability represented by the pension benefits foregone. They are calculated based on actuarial advice as the
equivalent of the reduction in the Companys liability to each individual and spread over the term to retirement as annual compensation allowances. The contributory defined benefit plan in which Albert Manifold and Maeve Carton participate is closed to new entrants. Mark Towe participates in a defined contribution retirement plan in respect of basic salary; and in addition he participates in an unfunded defined contribution
Supplemental Executive Retirement Plan (SERP) also in respect of basic salary, to which contributions are made at an agreed rate (20%), offset by contributions made to the other retirement plan.
 Details regarding pension entitlements for the executive Directors are set out in tables 33 and 34 above. There is no change to the pension arrangements for 2015.


LOGO






|* | Salary is defined as basic annual salary and excludes any fluctuating emoluments.
|- | ---------------------------------------------------------------------------------



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##### Table of Contents

LOGO


Directors Remuneration Report|
continued Directors Interests in Shares and Share Scheme Awards  Deferred
Share Awards under the Annual Bonus Plan (i) (Audited)











Table 3531 December
2013




Awards in
2014
(ii)




Alloted under
the scrip dividend
scheme in
2014




Released in
2014




31 December
2014




Release
DateMark Towe


-





2,561





65





-





2,626





Feb 2017 (i)     Under the Annual Bonus Plan in operation in respect of the financial year ended 31 December
2013, up to one-third of the earned bonus was receivable in CRH shares, deferred for a period of three years, with forfeiture in the event of departure from the Group in certain circumstances during that period.
 (ii)     The shares awarded
during 2014 related to the deferred portion of 2013 bonus and were included in total remuneration reported for 2013. These shares were purchased by the Trustees of the CRH plc Employee Benefit Trust on 26 February 2014 at 20.375 per Ordinary
Share.  Directors awards under the 2006 Performance Share Plan (i) (Audited)


Table 36Market31 December


Granted in


Released in


Lapsed in


31 December


Performance


Release


Price in euro2013


2014


2014 (ii)


2014 (ii)


2014


Period


Date


on awardMaeve Carton


42,000



-



20,626



21,374



-



01/01/11 - 31/12/1350,000



-



-



-



50,000



01/01/12 - 31/12/14







15.1950,000



-



-



-



50,000



01/01/13 - 31/12/15



February 2016



16.19142,000



-



20,626



21,374



100,000Albert Manifold


62,000



-



30,448



31,552



-



01/01/11 - 31/12/1370,000



-



-



-



70,000



01/01/12 - 31/12/14







15.1972,000



-



-



-



72,000



01/01/13 - 31/12/15



February 2016



16.19204,000



-



30,448



31,552



142,000Mark Towe


68,000



-



33,394



34,606



-



01/01/11 - 31/12/1390,000



-



-



-



90,000



01/01/12 - 31/12/14







15.1990,000



-



-



-



90,000



01/01/13 - 31/12/15



February 2016



16.19248,000



-



33,394



34,606



180,000 (i)2006 Performance Share Plan:This is a long-term share incentive plan under
which share awards are granted in the form of a provisional allocation of shares for which no exercise price is payable. The shares scheduled for release in February 2016 will be allocated to the extent that the relative TSR performance conditions
are achieved. The structure of the 2006 Performance Share Plan is set out on pages 114 and 115.(ii)   In 2014, the Remuneration Committee determined that
49.11% of the 2011 award vested and that portion of the award was released to participants. The balance of the 2011 award lapsed. The market value per share for tax purposes on the date of release was 21.28 for Directors resident in Ireland
and 21.505 for Directors resident outside Ireland.  Directors Awards under the 2014 Performance Share Plan (i) (Audited)


Table 37Market31 December


Granted in


Dividend
Equivalents


Released in


Lapsed in


31 December


Performance


Release


Pricein euro2013


2014


2014 (ii)


2014


2014


2014


Period


Date


on awardMaeve Carton


-



59,500



618



-



-



60,118



01/01/14 - 31/12/16



February 2019



20.49Albert Manifold


-



142,900



1,484



-



-



144,384



01/01/14 - 31/12/16



February 2019



20.49Mark Towe


-



97,100



1,008



-



-



98,108



01/01/14 - 31/12/16



February 2019



20.49 (i)2014 Performance Share Plan:This is a long-term share incentive plan under
which share awards are granted in the form of a provisional allocation of shares for which no exercise price is payable. The shares scheduled for release in February 2019 will be allocated to the extent that the relevant performance conditions are
achieved. The structure of the 2014 Performance Share Plan is set out in table 26 on page 115.(ii)   The Remuneration Committee has determined that
dividend equivalents should accrue on awards under the 2014 Performance Share Plan. Subject to the satisfaction of the applicable performance criteria, such dividend equivalents will be released to participants in the form of additional shares at
vesting.






118      CRH




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##### Table of Contents

Directors Remuneration Report| continued  Directors Share Options (Audited)


Table 38Details of movements on outstanding options and those exercised during the year are set out in the table below


Options exercised during
201431 December2013


Granted in2014


Lapsed in2014


Exercised
in 2014


31 December2014

6 March
2015




Weighted
average option price at31 December2014 


Weightedaverageexerciseprice



Weightedaverage
marketprice at dateof exercise
Maeve Carton


55,831



-



-



-


55,831

55,831


(a
)


25.75



-



-13,308



-



13,308



-


-

-


(b
)


-



-



-139,500



-



42,500



-


97,000

97,000


(c
)


15.67



-



--



1,726



-



-


1,726

1,726


(d
)


17.67



-



-Albert Manifold


166,445



-



-



-


166,445

149,810


(a
)


21.97



-



-16,635



-



16,635



-


-

-


(b
)


-



-



-200,000



-



62,500



-


137,500

137,500


(c
)


15.68



-



-2,236



-



-



-


2,236

2,236


(d
)


13.64



-



-Mark Towe


155,425



-



-



22,344


133,081

105,356


(a
)


24.38



15.09



21.5349,905



-



49,905



-


-

-


(b
)


-



-



-245,000



-



70,000



-


175,000

175,000


(c
)


15.68



-



-1,044,285



1,726



254,848



22,344


768,819

724,459  Option by price
(Audited)


Table 3931 December


Granted


Lapsed


Exercised


31 December






Earliest

2013


in 2014


in 2014


in 2014


2014






exercise date


Expiry date15.0674


29,943



-



29,943



-


-


(b
)15.0854


22,344



-



-



22,344


-


(a
)15.0854


49,905



-



49,905



-


-


(b
)18.7463


16,635



-



-



-


16,635


(a
)




February 2015



April 201518.8545


27,725



-



-



-


27,725


(a
)




February 2015



April 201526.1493


72,085



-



-



-


72,085


(a
)








April 201629.4855


53,232



-



-



-


53,232


(a
)








April 201729.8643


36,043



-



-



-


36,043


(a
)








April 201721.5235


99,637



-



-



-


99,637


(a
)








April 201816.58


50,000



-



-



-


50,000


(a
)








April 201916.38


175,000



-



175,000



-


-


(c
)15.19


210,000



-



-



-


210,000


(c
)








April 202216.19


199,500



-



-



-


199,500


(c
)








April 202313.64


2,236



-



-



-


2,236


(d
)




August 2017



January 201817.67


-



1,726



-



-


1,726


(d
)




August 2019



January 20201,044,285



1,726



254,848



22,344


768,819 The market price of the Companys shares at
31 December 2014 was 19.90 and the range during 2014 was 15.86 to 21.82. 
(a)   Granted under the 2000 share option scheme, these options are only exercisable when EPS growth exceeds
the growth of the Irish Consumer Price Index by 5% compounded over a period of at least three years subsequent to the granting of the options.
(b)   Granted under the 2000 share option scheme, these options are only exercisable if, over a period of at
least five years subsequent to the granting of the options, the growth in EPS exceeds the growth of the Irish Consumer Price Index by 10% compounded and places the Company in the top 25% of EPS performance of a peer group of international building
materials and other manufacturing companies. If below the 75thpercentile, these options are not exercisable.
(c)   Granted under the 2010 share option scheme. Vesting will only occur once an initial performance target
has been reached and, thereafter, will be dependent on performance. The performance criteria are set out in table 32 on page 116.
(d)   Granted under the 2010 savings-related share option scheme.


LOGO






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##### Table of Contents

LOGO


Directors Remuneration Report |continued  Shareholding guidelines for executive Directors The Remuneration Committee adopted a policy in 2013 whereby executive Directors are required to build up (and maintain), within five years of appointment
a minimum holding in CRH shares which is equivalent to one times basic salary. For existing executive Directors this level must be achieved by 31 December 2015, unless the executive Director has a significant change in role which results in a
step change in salary in which case the one times salary level
 must be achieved within five years of the change. The shareholding levels as a multiple of basic salary are shown
in table 40. Following his appointment as Chief Executive on 1 January 2014, the Remuneration Committee determined that Albert Manifold will be
required to meet the shareholding guideline by 31 December 2017. As part of the remuneration review carried out in 2013, the Remuneration
 Committee considered whether the shareholding level should be increased, particularly in relation to the Chief Executive role. The Remuneration Committee concluded that, as the
guidelines were only recently introduced, it was not appropriate to increase the requirement at this time. However, the Committee will look to increase shareholding guidelines in the future as the Chief Executive builds on his existing holding.
   LOGO  *
The shareholdings are calculated based on the closing share price on 24 February 2015 (24.92) and do not include Deferred Shares to be awarded under the 2014 Annual Bonus Plan (which will be released
in 2018). If the Deferred Shares were included in the above table (on a post-tax basis) the executive Directors shareholdings would be approximately 0.9, 3.2 and 2.6 times salary respectively.






120      CRH




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##### Table of Contents

Directors Remuneration Report |continued Shareholdings of Directors and Company Secretary as at 31 December 2014  Directors Interests in Share Capital at 31 December 2014 (Audited)

Table 41 The interests of the Directors and Secretary in the shares of the Company, which are beneficial unless otherwise indicated, are shown
below. The Directors and Secretary have no beneficial interests in any of the Groups subsidiary, joint venture or associated
undertakings.6 March





31 December





31 DecemberOrdinary Shares


2015





2014





2013DirectorsE.J. Bärtschi


25,200





25,200





7,200M. Carton


82,546





82,036





60,100W.P. Egan


16,112





16,112





16,112- Non-beneficial


12,000





12,000





12,000U-H. Felcht


1,285





1,285





1,285N. Hartery


12,265





12,265





1,430J.W. Kennedy


1,083





1,083





1,049P.J. Kennedy


2,000





-





-D.A. McGovern, Jr.


5,131





5,131





4,000H.A. McSharry


3,886





3,886





3,789A. Manifold


42,518





39,998





38,981D.N. OConnor


17,344





17,344





16,915H. Th. Rottinghuis


15,124





15,124





-
**M. Towe


105,276
*




100,276
*




77,117SecretaryN. Colgan


9,463





15,549





10,836351,233





347,289





250,814Of the above holdings, the following are held in the form of
American Depository Receipts:6 March





31 December





31 December2015





2014





2013W.P. Egan


15,000





15,000





15,000- Non-beneficial


12,000





12,000





12,000D.A. McGovern, Jr.


5,131





5,131





4,000Patrick J.
Kennedy became a Director on 1 January 2015.  Lucinda Riches became a Director on
1 March 2015. She does not have a holding of CRH shares. 
*   Excludes awards of Deferred Shares, details of which are disclosed in table 35 on page 118.
** Holding at date of appointment


LOGO






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##### Table of Contents

LOGO


Directors Remuneration Report |continued  Non-executive Directors Remuneration paid to non-executive Directors in 2014 is set out in table 42 below. The remuneration of non-executive Directors is determined by the Board of Directors as a whole. In determining
 the remuneration, the Board receives recommendations from a committee of the Chairman and the executive Directors. The Remuneration Committeedetermines the remuneration of the Chairman.
 Fees for the non-executive Directors were reviewed during 2014. It was concluded that CRHs fees are
competitively positioned at present and should remain unchanged in 2015. Fees for 2015 are set out in table 43 below.
   Individual Remuneration for the year ended 31 December 2014 (Audited)

Table 42 Basic



OtherSalary and Fees

Benefits

Remuneration

Total

Total

Total(a)

(b)

(c) 000

 000

 000

 000

 000

 0002014

2014

2014

2014

2013

2012Non-executive DirectorsE.J. Bärtschi

68

-

71

139

116

105W.P. Egan

68

-

52

120

120

120U-H. Felcht

68

-

37

105

105

105N. Hartery (d)

68

10

382

460

473

305J.M. de Jong (e)

24

5

13

42

128

139J.W. Kennedy

68

-

37

105

105

105D.A. McGovern Jr. (f)

68

-

52

120

60

-K. McGowan (d)

-

-

-

-

-

145H.A. McSharry (g)

68

-

22

90

90

77D.N. OConnor

68

-

56

124

124

112H.Th. Rottinghuis (h)

59

-

27

86

-

-627

15

749

1,391

1,321

1,213 (a)

Fee
levels for non-executive Directors were unchanged in 2014.(b)

Benefits: In the case of Nicky Hartery the amount reflects the
reimbursement of travel expenses from his residence to his Chairmans office in Dublin, which have been grossed up for Irish tax purposes. In the case of Jan Maarten de Jong, it includes the value of a gift given to him on his
retirement.(c)

Other Remuneration: Includes remuneration for Chairman, Board Committee
work and allowances for non-executive Directors based outside of Ireland.(d)

Nicky Hartery became Chairman on 9 May 2012 succeeding Kieran McGowan who
retired as a non-executive Director on the same date.(e)

Jan Maarten de Jong retired as a Director on 7 May 2014.(f)

Don McGovern became a Director on 1 July 2013.(g)

Heather Ann McSharry became a Director on 22 February 2012.(h)

Henk Rottinghuis became a Director on 18 February 2014.  Non-executive Director Fee Structure


Table 43 Role


AmountGroup Chairman (including non-executive Director salary and fees for committee
work)


450,000Non-executive Director (basic salary and fees for committee work)


90,000Additional fees:Senior Independent Director/Remuneration Committee Chairman*


34,000Audit Committee Chairman


34,000Fee for Europe-based non-executive Directors


15,000Fee for US-based non-executive Directors


30,000*  If the roles of Senior Independent Director and Remuneration Committee Chair are
not combined, fees of 25,000 and 15,000 apply respectively.






122      CRH




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##### Table of Contents

Directors Remuneration Report |continued  LOGO

LOGO  (i)
For the purposes of comparability, the FTSE 100 Index has been converted to euro using the closing exchange rate at each year-end.  Other Disclosures 
Fees paid to former Directors No payments
have been made to individual former directors in excess of the de minimis threshold of 20,000 per annum agreed by the Remuneration Committee. 
Executives external appointments
The executive Directors may accept external appointments with the prior approval of the Board provided that such appointments do not prejudice the
individuals ability to fulfil their duties at the Group. Whether any related fees are retained by the individual or remitted to the Group is considered on a case-by-case basis.

Remuneration paid to Chief Executive 2009 - 2014
Table 46 below shows the total remuneration paid to the Chief Executive in the period 2009 to 2014 inclusive and shows bonuses and vested long-term incentive
awards as a percentage of the maximum bonus and award that could have been received in each year. Albert Manifold succeeded Myles Lee as Chief Executive effective from 1 January 2014.
 The percentage increase in the Chief Executives salary in the period 2009 to 2014 is
set out in table 14 on page 108.

The percentage change in the Chief Executives salary, benefits and bonus between 2013 and 2014 was as follows:
 Salary     +1.7%
Benefits  +69.6%
Bonus     +327.6% 
The combined percentage change was +87.1%. 
There was a 1.5% increase in the total average employment costs in respect of employees in the Group as a whole between 2013 and 2014.Maeve Carton was appointed as a non-executive member of the National Treasury Management Agency, an Irish state body that provides asset and
liability management services to the Irish government in December 2014. 
Total Shareholder Return The value at
31 December 2014 of 100 invested in 2004 and 2008 respectively, compared with the value of 100 invested in the Eurofirst 300 Index and the FTSE 100 Index (which CRH joined in December 2011) is shown in the graphs above.
 TSR performance has been compared against the FTSE 100 and the Eurofirst 300 as these are
broad general market indices on which CRH is a constituent. The Committee, therefore, considers that they offer a reasonable comparison for performance. 
Compound TSR growth since the formation of the Group in 1970 (assuming the reinvestment of dividends) is 15.7%.

LOGO 
1  Value of bonus award each year as a percentage of the maximum opportunity.
2  Value of vested incentive awards as a percentage of the maximum opportunity; in respect of 2013 the long-term
incentive award value is made up of vestings under the 2006 Performance Share Plan (49.1% of maximum) and the 2009 CEO LTIP (33.7% of maximum). There was no long-term incentive vesting in relation to awards with a performance period ending in 2012
or 2014.


LOGO






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##### Table of Contents

Directors
Remuneration Report |continued





LOGO


Relative importance of spend on pay Table 47 across sets out the amount paid by the Group in remuneration to employees compared to dividend distributions made to shareholders in 2013 and 2014. The
average number of employees is set out in note 5 to the Consolidated Financial Statements on page 152. We have also shown the change in EBITDA (as defined)* performance year on year to provide an indication of the change in profit performance. TheRemuneration Committeeand Advisors The non-executive Directors who were members of the Remuneration Committee during 2014, together with their record of attendance at Committee meetings,
are identified on page 104. Don McGovern joined the Committee with effect from 1 January 2015. Risk policies and systems During 2014, the Chairman of the Remuneration Committee reviewed with the Audit Committee the Groups remuneration structures
from a risk perspective. Remuneration consultants Deloitte LLP was appointed as the Committees remuneration consultants in 2013 following a tender process. The Committee has satisfied itself that the
advice provided by Deloitte is robust and independent and that the Deloitte LLP engagement partner and team that provide remuneration advice to the Committee do not have connections with CRH plc that may impair their independence. Deloitte are
signatories to the Voluntary Code of Conduct in relation to executive remuneration consulting in the UK. During 2014, Deloitte provided the following
remuneration services:  
research and advice regarding remuneration trends, best practice and remuneration levels for executive and non-executive directors in companies of similar size and complexity;  
guidance and advice in relation to remuneration developments;  
analysis of TSR workings under the 2006 Performance Share Plan;


LOGO  2014 AGM
 Remuneration Related Votes

Table 48 % in Favour

% Against

No. of voteswithheld

Total No. ofvotes cast(incl. voteswithheld)

% of issuedshare capitalDirectors Remuneration Report (Say on Pay)

98.1%

1.9%

13,587,697

511,227,387

69.6%Remuneration Policy Report

95.2%

4.8%

3,648,186

511,208,343

69.6%  
advice in relation to remuneration matters generally; and  
attendance at Committee meetings, when required. Deloitte also provide other consultancy services to the
Company in relation to support for Internal Audit, when required and in respect of talent management and human resources, taxation and sustainability. In
respect of work carried out by Deloitte on behalf of the Remuneration Committee in 2014, fees in the amount of 49,000 were incurred. 2014 Annual General Meeting votes on remuneration matters The voting outcome in respect of the remuneration
related votes at the 2014 Annual General Meeting is set out in table 48 above. Shareholder Engagement The Chairman and the Remuneration Committee Chairman met with a number of the Groups major shareholders in advance of the 2014 Annual General
 Meeting. No issues of concern in relation to remuneration arose. As the voting was overwhelmingly in favour of
the Say on Pay resolution, following the meeting the Remuneration Committee determined that there were no concerns with the Groups remuneration structures that required investigation. Following the 2014 Annual General Meeting we also met with a major shareholder to discuss the metrics used for CRHs long-term incentive structures and we
received correspondence from another shareholder regarding their perspectives in relation to the disclosure of annual targets (which we believe our disclosures on pages 113 and 114 address).






*  Defined as earnings before interest, taxes, depreciation, amortisation, asset
impairment charges, profit on disposals and the Groups share of equity accounted investments result after tax.124      CRH




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##### Table of Contents

Directors Remuneration Report |continued Details of remuneration charged against profit in 2014  Directors Remuneration1(Audited)


Table 49 2014



2013



2012 000



 000



 000Executive DirectorsBasic salary


2,861



3,591



3,512Performance-related incentive plan- cash element


3,219



1,833



1,540- deferred shares element


1,073



54



-Retirement benefits expense


1,026



1,660



1,645Benefits


114



126



1288,293



7,264



6,825Provision for Chief Executive long-term incentive plan2


-



(1,062)



460Total executive Directors remuneration


8,293



6,202



7,285Average number of executive Directors


3.00



4.00



4.00Non-executive DirectorsFees


627



578



557Other remuneration


749



720



656Benefits


15



23



-Total non-executive Directors remuneration


1,391



1,321



1,213Average number of non-executive Directors


9.30



8.50



8.20Payments to former Directors3


23



23



29Total Directors remuneration


9,707



7,546



8,527 1

See analysis of 2014 remuneration by individual in tables 18 and 42 on pages 111 and 122.2

As set out on page 95 of the 2013 Annual Report on Form 20-F, former Chief Executive Myles Lee had a special long-term incentive plan tied to the
achievement of exceptional growth and key strategic goals for the five-year period 2009 to 2013 with a total maximum earnings potential of 40% of aggregate basic salary, amounting to a potential 2,312,000. The actual earnings under this plan
amounted to 778,127, payment of which was made in 2014. Annual provisions of 40% of basic salary were made in respect of this plan for the years 2009 through 2012 amounting in total to 1,840,000. The difference between the total provided
for and the sum paid, which amounts to 1,061,873, is reflected as a reduction in the amount of total Directors remuneration for 2013.3

Consulting and other fees paid to a number of former directors.


LOGO






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##### Table of Contents

LOGO


Directors Remuneration Report |continued  Remuneration Policy Summary The following summarises the key elements of CRHs Remuneration Policy (the Policy), which was approved by shareholders at the 2014 Annual
General Meeting. A copy of the Policy is available on the Groups website, www.crh.com. As an Irish incorporated company, CRH is not required to
comply with section 439A of the UK Companies Act 2006 which requires UK companies to submit their remuneration policy to a binding shareholder vote. However, maintaining high levels of corporate governance is important to CRH and, therefore, the
Company intends to operate within the Policy unless it is not practical to do so in exceptional circumstances. However, as an Irish incorporated company, CRH cannot rely on the statutory provisions applicable to UK companies under the 2013 UK
Regulations which, in certain circumstances, can resolve any inconsistency between a remuneration policy and any contractual or other right of a Director. In the event there were to be such an inconsistency the Company may be obliged to honour any
such right, notwithstanding it may be inconsistent with the Policy. The Remuneration Committees aim is to make sure that CRHs pay
structures are fair, responsible and competitive, in order that CRH can attract and retain staff of the calibre necessary for it to compete in all of its markets. The Groups remuneration structures are designed to drive performance and link rewards to responsibility and the individual contribution of executives. It
is policy to grant participation in the Groups performance-related plans to key management to encourage identification with shareholders interests and to create a community of interest among different regions and nationalities. The policy on Directors remuneration, which is derived from the overall Group policy, is designed to:  

help attract and retain Directors of the highest calibre who can bring their experience and independent views to the policy, strategic decisions and governance of CRH;
 

properly reward and motivate executive Directors to perform in the long-term interest of the shareholders;  

provide an appropriate blend of fixed and variable remuneration and short and long-term incentives for executive Directors;  

complement CRHs strategy of fostering entrepreneurship in its regional companies by rewarding the creation of shareholder value through organic and acquisitive growth;  

reflect the spread of the Groups operations so that remuneration packages in each geographical area are appropriate and competitive for that area; and  

reflect the risk policies of the Group. In setting remuneration levels, the Remuneration Committee takes
into consideration the remuneration practices of other international companies of similar size and scope and trends in executive remuneration generally, in each of the regions in which the Company operates. The Remuneration Committee also
takes into account the EU Commissions recommendations on remuneration in listed companies. Executive Director service contracts and
policy on payment for loss of office When determining leaving arrangements for an executive Director, the Committee takes into account any
contractual agreements (including any incentive arrangements) and the performance and conduct of the individual. Service contracts The Chief Executive has entered into a service contract with the Company. Table 51 on page 127 sets out the key remuneration terms of this
contract. The Finance Director (Maeve Carton) and Chief Executive, Oldcastle, Inc. (Mark Towe) do not currently have service contracts. They do not have a
notice period in excess of 12 months or an entitlement to any benefits on termination of employment. The Committee will determine the amount, if any, paid on termination taking into account the circumstances around departure and the prevailing
employment law.
 The Committees policy in this area is that service contracts will be put in place for newly appointed
executive Directors and in cases where there is a significant step change in Directors responsibilities. It is currently anticipated that these terms will be similar to those agreed with the Chief Executive. Under Irish company law, CRH is not required to make service contracts available for inspection as the notice period is less than 12 months. Service contracts
will only be available with the executive Directors consent due to data protection reasons. On behalf of the Board Dan OConnor Remuneration Committee Chairman






126      CRH




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##### Table of Contents

Directors Remuneration Report |continued Remuneration Policy for non-executive Directors  Approach to Setting Fees



Basis of Fees



Other Items

Table 50   The remuneration of
non-executive Directors is determined by a Board committee of the Chairman and the executive Directors. 
   The Remuneration Committeedetermines the remuneration of the Chairman within the framework or
broad policy agreed with the Board. 
   Remuneration is set at a level which will attract individuals with the necessary experience and ability
to make a substantial contribution to the Companys affairs and reflect the time and travel demands of Board duties. 
   Fees are set taking into account typical practice at other companies of a similar size and complexity to
CRH.     Fees are reviewed at
appropriate intervals.



   Fees are paid in cash.
    Non-executive Director fees policy
is to pay:  -   A basic fee for membership
of the Board;  -   An additional fee for
chairing a Committee;  -   An additional
fee for the role of Senior Independent Director (SID) (if the SID is not the Chairman of the RemunerationCommittee); 
-   An additional fee to reflect committee work (combined fee for all committee roles); and
 -   An additional fee based on the location
of the Director to reflect time spent travelling to Board meetings. 
   Other fees may also be paid to reflect other board roles or responsibilities.
    In accordance with the Articles of
Association, shareholders set the maximum aggregate amount of the fees payable to non-executive Directors. The current limit of 750,000 was set by shareholders at the Annual General Meeting held
in 2005.



   The non-executive Directors do not participate in any of the Companys
performance-related incentive plans or share schemes. 
   Non-executive Directors do not receive pensions.
    The Group Chairman is reimbursed for
expenses incurred in travelling from his residence to his CRH office. The Company settles any tax incurred on this on his behalf. 
   Non-executive Directors do not currently receive any benefits. However, benefits may be provided in the
future if, in the view of the Board (for non-executive Directors or for the Chairman), this was considered appropriate. The Company may settle any tax due on benefits.  Chief Executive Service Contract

Table 51Notice period

   12 months
notice by the Company or the executive.Expiry date

   Indefinite
duration.     Terms of contract will
automatically terminate on the executives 62nd birthday.Termination payments

   On lawful
termination of employment, the Committee may, at its absolute discretion, make a termination payment in lieu of 12 months notice based on base salary, benefits and pension contribution due during that period.
    Where the Company terminates the
contract lawfully without notice then no payment in lieu of notice shall be due. 
   If, in the event of a change of control, there is a diminution in the role and responsibilities of the
Chief Executive he may terminate the contract; on such termination a payment equal to one years remuneration (being salary, pension, other benefits and vested incentive awards) will be made to the executive.Disability

   In the event that
the Chief Executive falls ill or is injured in such a way as which would constitute ill-health or disablement so that the Chief Executive could not work for a period of more than six months, in lieu of the early ill-health retirement provisions in
the pension scheme which would otherwise operate in such cases, he shall be entitled to receive a disability salary of 1,000,000 per annum. Such payment would cease when the Chief Executive
reaches age 60, returns to work or if the service agreement is terminated.Other information

   The Company
retains the ability to suspend the executive from employment on full salary and to require the executive to observe a period of garden leave of up to 12 months on full salary, contractual benefits and pension contribution.


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Directors Remuneration Report |continued  Policy table

Further details regarding
the operation of the Policy can be found on pages 111 to 125 of the Annual Statement on Remuneration.FixedElement

Base salary



PensionPurpose and link to strategy

   Competitive salaries help to attract and retain staff with the
experience and knowledge required to enable the Group to compete inits markets.



   Pension arrangements provide
competitive and appropriate retirement plans. 
   Given the long-term nature of the business, pension is an important part of the remuneration package to
support creation of value and succession planning.Operation

   Base salaries are set by the
Committeetaking into account: 
   the size and scope of the executive Directors role and responsibilities;
    the individuals skills,
experience and performance; 
   salary levels at FTSE listed companies ofa similar size and complexity to CRH and other international
construction andbuilding materials companies; and 
   pay and conditions elsewhere in the Group.
    Base salary is normally reviewed
annually with changes generally effective on 1 January, although the Committee may make an out-of-cycle increase if it considers it to be appropriate.



   Irish-based executive
Directors participate in a contributory defined benefit scheme. 
   The US-based executive Director participates in a defined contribution scheme and in an unfunded
Supplemental Executive Retirement Plan (SERP). 
   The defined benefit scheme which the Directors participate in is closed to new entrants.
    For new appointments to the Board,
the Committee may determine that alternative pension provisions will operate (for example a defined contribution scheme or cash contribution). When determining pension arrangements for new appointments, the Committee will give regard to existing
entitlements, the cost of the arrangements, market practice and the pension arrangements received elsewhere in the Group.Maximum opportunity

   Base salaries are set at a
level which the Committee considers to be appropriate taking into consideration the factors outlined in the operation section. 
   While there is no maximum base salary, normally increases will be in line with the typical level of
increase awarded to other employees in the Group but may be higher in certain circumstances. These circumstances may include: 
   Where a new executive Director has been appointed at a lower salary, higher increases may be awarded over
an initial period as the executive Director gains in experience and the salary is moved to what the Committee considers is an appropriate positioning; 
   Where there has been a significant increase in the scope or responsibility of an executive
Directors role or where an individual has been internally promoted, higher salary increases may be awarded; and 
   Where a larger increase is considered necessary to reflect significant changes in market practice.



   The defined benefit pension
is provided through an Irish Revenue approved retirement benefit scheme up until the pension cap established in the Finance Act 2006 (see details on page 111). Accrued benefits for service to 31 December 2011 are based on pensionable salary and
years of service as at that date (annual accrual of 1/60th), with this tranche being revalued annually at the Consumer Price Index subject to a 5% ceiling. For service subsequent to that date, a
career-average revalued earnings system was introduced with each year of service being subject to annual revaluation on the same basis as outlined above. Irish based executive Directors receive a supplementary taxable non-pensionable cash allowance
in lieu of pension benefits foregone as a result of the pension cap. These allowances are similar in value to the reduction in the Companys liability represented by the pension benefit foregone. Whilst there is no absolute maximum to the
quantum of these payments they are calculated based on actuarial advice as the equivalent of the reduction in the Companys liability to each individual and spread over the term to retirement as annual compensation allowances.
    The US-based executive Director
participates in a defined contribution retirement plan in respect of basic salary; and in addition he participates in an unfunded defined contribution SERP also in respect of basic salary, to which contributions are made at an agreed rate (20%),
offset by contributions made to the other retirement plan.Performance
measures

n/a



n/a






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Directors Remuneration Report |continued  Table 52Benefits   To provide a
market-competitive level of benefits for executive Directors.   The
Committees policy is to set benefit provision at an appropriate market competitive level taking into account market practice, the level of benefits provided for other employees in the Group, the individuals home jurisdiction and the
jurisdiction in which the individual is based. 
   Employment-related benefits include the use of company cars (or a car allowance), medical insurance for
the Director and his/her family/life assurance. 
   In the event that the Chief Executive falls ill or is injured in such a way as which would constitute
ill-health or disablement so that the Chief Executive could not work for a period of more than six months, in lieu of the early ill-health retirement provisions in the pension scheme which would otherwise operate in such cases, he shall be entitled
to receive a disability salary of 1,000,000 per annum. Such payment would cease when the Chief Executive reaches age 60, returns to work or if the service agreement is terminated.
    The Chief Executive, Oldcastle Inc.
also receives benefits in relation to club membership and short term disability insurance. 
   Benefits may also be provided in respect of legal fees incurred in respect of agreeing service contracts,
or similar agreements (for which the Company may settle any tax incurred by the executive Director) and a gift on retirement. 
   The Committee may remove benefits that executive Directors receive or introduce other benefits if it is
considered appropriate to do so. The Company may also pay the tax due on benefits if it considers that it is appropriate to do so. 
   All-employee share schemes executive Directors are eligible to participate in the
Companys all-employee share schemes on the same terms as other employees. 
   Relocation policy where executive Directors are required to relocate to take up their role,
the Committee may determine that they should receive appropriate relocation and ongoing expatriate benefits. The level of such benefits would be determined based on individual circumstances taking into account typical market practice.   The level of
benefit provided will depend on the cost of providing individual items and the individuals circumstances, and therefore the Committee has not set a maximum level of benefits.n/a


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Directors Remuneration Report |continued  Policy table continuedPerformance-related
payElement

Annual Bonus PlanPurpose and
link to strategy

   The Annual
Performance-related Incentive Plan is designed to reward the creation of shareholder value through operational excellence and organic and acquisitive growth. The Plan incentivises executive Directors to deliver Group and individual goals that
support long-term value creation. 
   A Deferred Annual Performance-related Incentive Plan element links the value of executive Directors
reward with the long-term performance of the CRH share price and aligns the interests of executive Directors with shareholders interests. 
   The malus provision enables the Company to mitigate risk.Operation

   The Annual
Performance-related Incentive Plan rewards executive Directors for meeting Company performance goals over a financial year of the Company. Targets are set annually by the Committee.
    The annual bonus is paid in a mix of
cash and shares (structured as a deferred share award). 
   For 2014: 
   75% of the bonus will be paid in cash; and
    25% will be paid in shares.
    In future years, the Committee may
determine that a different balance between cash and shares is appropriate and adjust the relevant payments accordingly. 
   When assessing performance and determining bonus payouts the Committee also considers the underlying
financial performance of the business to ensure it is consistent with the overall award level. 
   The deferred element of the bonus will be structured as a conditional share award or nil cost option and
will normally vest after three years from grant (or a different period determined by the Committee). Deferred share awards may be settled in cash. 
   Dividend equivalents may be paid on deferred share awards in respect of dividends paid during the vesting
period. These payments may be made in cash or shares and may assume the reinvestment of dividends on a cumulative basis. 
   For deferred awards granted from 2014, malus provisions apply. Cash bonus payments may be subject to
clawback of the net amount paid for a period of three years from payment.Maximum
opportunity

   Maximum annual opportunity of 150% of base salary.Performance measures

   The Annual
Performance-related Incentive Plan is based on achieving clearly defined and stretching annual targets and strategic goals set by the Committee each year based on key business priorities.
    The performance metrics used are a
mix of financial targets including return goals and personal/strategic objectives generally including safety. Currently 80% of the bonus is based on financial performance measures. The Committee may vary the weightings of measures but no less than
50% shall be based on financial performance measures. 
   A portion of the bonus metrics for any Director may be linked to his/her specific area of
responsibility.     Up to 50% of the
maximum bonus will be paid for achieving target levels of performance.






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##### Table of Contents

Directors Remuneration Report |continued  Table 522014 Performance Share Plan (PSP)   The role of the
PSP is to align the interest of key management across different regions and nationalities with those of shareholders through an interest in CRH shares and by incentivising the achievement of long-term performance goals.   Awards (in the
form of conditional share awards or nil cost options) normally vest based on performance over a period of not less than three years. Awards may also be settled in cash. 
   Awards are normally subject to an additional holding period ending on the fifth anniversary of the grant
date (or another date determined by the Committee). 
   Dividend equivalents may be paid on PSP awards that vest in respect of dividends paid during the vesting
period until the end of the holding period. These payments may be made in cash or shares and may assume reinvestment on a cumulative basis. 
   For 2014 awards onwards, malus provisions (as set out in the rules of the PSP) will apply to awards.   The normal
maximum award is 250% of salary per annum. In exceptional circumstances, the Committee may grant awards of up to 350% of base salary. 
   For 2014 the intended award levels are:
    Chief Executive  250% of base
salary     Other executive Directors
 200% of base salary   Awards to be
granted in 2014 will vest based on a relative TSR return compared to key peers and cumulative cash flow performance. 
   For threshold levels of performance 25% of the award vests with straight-line vesting to maximum.
    When determining vesting under the
PSP the Committee reviews whether the TSR performance has been impacted by unusual events and whether it, therefore, reflects the underlying performance of the business. In addition, the Committee will consider financial performance (including EPS)
in the period to ensure that TSR performance is consistent with the objectives of the performance criteria and was not distorted by extraneous factors. 
   The Committee may amend the performance conditions if an event occurs that causes it to consider that an
amended performance condition would be more appropriate and would not be materially less difficult to satisfy.


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Consolidated Financial StatementsThe following Consolidated Financial Statements, together with the reports of the Independent Registered Public Accounting Firm thereon, are filed as part of
this Annual Report:PageReport of Independent Registered Public Accounting Firm


133Consolidated Income Statement


135Consolidated Statement of Comprehensive Income


135Consolidated Balance Sheet


136Consolidated Statement of Changes in Equity


137Consolidated Statement of Cash Flows


138Accounting Policies


139Notes on Consolidated Financial Statements


146






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##### Table of Contents

REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of CRH public limited company (CRH plc): We have audited the accompanying Consolidated Balance Sheets of CRH plc as of 31 December 2014 and 2013, and the related
Consolidated Income Statements and Consolidated Statements of Comprehensive Income, Changes in Equity and Cash Flows for each of the three years in the period ended 31 December 2014. These Consolidated Financial Statements are the
responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the Consolidated Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Consolidated Financial Statement
presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the Consolidated
Financial Statements referred to above present fairly, in all material respects, the consolidated financial position of CRH plc at 31 December 2014 and 2013, and the consolidated results of its operations and its consolidated cash flows for
each of the three years in the period ended 31 December 2014, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), CRH
plcs internal control over financial reporting as of 31 December 2014, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organisations of the Treadway Commission (2013 Framework)
and our report dated 11 March 2015 expressed an unqualified opinion thereon. ERNST & YOUNG Dublin, Ireland 11 March 2015


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REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING To
the Board of Directors and Shareholders of CRH public limited company (CRH plc): We have audited CRH plcs internal
control over financial reporting as of 31 December 2014, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organisations of the Treadway Commission (2013 Framework) (the COSO
criteria). CRH plcs management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying
Managements Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Companys internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of
internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. A
companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements for external purposes in
accordance with generally accepted accounting principles. A companys internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated Financial Statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the Consolidated Financial Statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. As indicated in the accompanying Managements Report on Internal Control over Financial Reporting, managements
assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of business combinations completed during the year ended 31 December 2014, which are included in the 2014
Consolidated Financial Statements of CRH plc and constituted 0.7% and 1.2% of total and net assets, respectively, as of 31 December 2014 and 0.6% and 0.8% of revenues and Group profit, respectively, for the year then ended. Our audit of
internal control over financial reporting of CRH plc also did not include an evaluation of the internal control over financial reporting of business combinations completed during the year ended 31 December 2014. In our opinion, CRH plc maintained, in all material respects, effective internal control over financial reporting as of
31 December 2014, based on the COSO criteria. We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the 2014 Consolidated Financial Statements of CRH plc and our report dated 11 March 2015 expressed an unqualified opinion thereon. ERNST & YOUNG Dublin, Ireland 11 March 2015






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##### Table of Contents

Consolidated Income Statement for the financial year ended 31 December 2014  2014
m


2013
m


2012
mNotes1


Revenue


18,912



18,031



18,0842


Cost of sales


(13,427
)


(13,153
)


(13,018
)Gross profit


5,485



4,878



5,0662


Operating costs


(4,568
)


(4,778
)


(4,261
)1,3,5,6


Group operating profit


917



100



8051,4


Profit on disposals


77



26



230Profit before finance costs


994



126



1,0358


Finance costs


(254
)


(262
)


(271
)8


Finance income


8



13



158


Other financial expense


(42
)


(48
)


(49
)9


Share of equity accounted investments profit/(loss)


55



(44
)


(84
)1


Profit/(loss) before tax


761



(215
)


64610


Income tax expense


(177
)


(80
)


(106
)Group profit/(loss) for the financial year


584



(295
)


540Profit/(loss) attributable to:Equity holders of the Company


582



(296
)


538Non-controlling interests


2



1



2Group profit/(loss) for the financial year


584



(295
)


54012


Basic earnings/(loss) per Ordinary Share


78.9c



(40.6c
)


74.6c12


Diluted earnings/(loss) per Ordinary Share


78.8c



(40.6c
)


74.5cAll of the results relate to continuing operations.Consolidated
Statement of Comprehensive Income  for the financial year ended 31 December 20142014m


2013m


2012mNotesGroup profit/(loss) for the financial year


584



(295
)


540Other comprehensive incomeItems that may be reclassified to profit or loss in subsequent years:Currency translation effects


599



(373
)


(51
)24


Losses relating to cash flow hedges


(6
)


(2
)


1593



(375
)


(50
)Items that will not be reclassified to profit or loss in subsequent years:27


Remeasurement of retirement benefit obligations


(414
)


162



(146
)10


Tax on items recognised directly within other comprehensive income


69



(43
)


23(345
)


119



(123
)Total other comprehensive income for the financial year


248



(256
)


(173
)Total comprehensive income for the financial year


832



(551
)


367Attributable to:Equity holders of the Company


830



(552
)


366Non-controlling interests


2



1



1Total comprehensive income for the financial year


832



(551
)


367


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Consolidated Balance Sheet as at 31 December 2014  2014
m


2013
mNotesASSETSNon-current assets13


Property, plant and equipment


7,422



7,53914


Intangible assets


4,173



3,91115


Investments accounted for using the equity method


1,329



1,34015


Other financial assets


23



2317


Other receivables


85



9324


Derivative financial instruments


87



6326


Deferred income tax assets


171



107Total non-current assets


13,290



13,076Current assets16


Inventories


2,260



2,25417


Trade and other receivables


2,644



2,516Current income tax recoverable


15



2624


Derivative financial instruments


15



1722


Cash and cash equivalents


3,262



2,5404


Assets held for sale


531



-Total current assets


8,727



7,353Total assets


22,017



20,429EQUITYCapital and reserves attributable to the Companys equity holders28


Equity share capital


253



25128


Preference share capital


1



128


Share premium account


4,324



4,21928


Treasury Shares and own shares


(76
)


(118
)Other reserves


213



197Foreign currency translation reserve


57



(542
)Retained income


5,405



5,65410,177



9,662Non-controlling interests


21



24Total equity


10,198



9,686LIABILITIESNon-current liabilities23


Interest-bearing loans and borrowings


5,419



4,57924


Derivative financial instruments


3



3426


Deferred income tax liabilities


1,305



1,16618


Other payables


257



28927


Retirement benefit obligations


711



41025


Provisions for liabilities


257



231Total non-current liabilities


7,952



6,709Current liabilities18


Trade and other payables


2,894



2,754Current income tax liabilities


154



15123


Interest-bearing loans and borrowings


447



96124


Derivative financial instruments


20



1925


Provisions for liabilities


139



1494


Liabilities associated with assets classified as held for sale


213



-Total current liabilities


3,867



4,034Total liabilities


11,819



10,743Total equity and liabilities


22,017



20,429






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##### Table of Contents

Consolidated Statement of Changes in Equity for the financial year ended 31 December 2014  Attributable to the equity holders of the CompanyIssued
share capital
m


Share
premium account
m


Treasury
Shares/ own
shares m


Other
reserves m


Foreign
currency translation
reservem


Retained
income m


Non-
controlling interests
m


Total
equity mNotesAt 1 January 2014


252



4,219



(118
)


197



(542
)


5,654



24



9,686Group profit for the financial year


-



-



-



-



-



582



2



584Other comprehensive income


-



-



-



-



599



(351
)


-



248Total comprehensive income


-



-



-



-



599



231



2



83228


Issue of share capital (net of expenses)


2



105



-



-



-



-



-



1077


Share-based payment expense- share option schemes


-



-



-



1



-



-



-



1- Performance Share Plans/Restricted Share Plan


-



-



-



15



-



-



-



1528


Treasury/own shares reissued


-



-



42



-



-



(42
)


-



-Share option exercises


-



-



-



-



-



22



-



2211


Dividends (including shares issued in lieu of dividends)


-



-



-



-



-



(460
)


(4
)


(464
)Acquisition of non-controlling interests


-



-



-



-



-



-



(1
)


(1
)At 31 December 2014


254



4,324



(76
)


213



57



5,405



21



10,198for the financial year ended 31 December 2013At 1 January 2013


250



4,133



(146
)


182



(169
)


6,303



36



10,589Group loss for the financial year


-



-



-



-



-



(296
)


1



(295
)Other comprehensive income


-



-



-



-



(373
)


117



-



(256
)Total comprehensive income


-



-



-



-



(373
)


(179
)


1



(551
)28


Issue of share capital (net of expenses)


2



86



-



-



-



-



-



887


Share-based payment expense- share option schemes


-



-



-



1



-



-



-



1- Performance Share Plans/Restricted Share Plan


-



-



-



14



-



-



-



1428


Treasury/own shares reissued


-



-



34



-



-



(34
)


-



-28


Shares acquired by Employee Benefit Trust (own shares)


-



-



(6
)


-



-



-



-



(6
)Share option exercises


-



-



-



-



-



19



-



1911


Dividends (including shares issued in lieu of dividends)


-



-



-



-



-



(455
)


(1
)


(456
)30


Non-controlling interests arising on acquisition of subsidiaries


-



-



-



-



-



-



1



1Acquisition of non-controlling interests


-



-



-



-



-



-



(13
)


(13
)At 31 December 2013


252



4,219



(118
)


197



(542
)


5,654



24



9,686for the financial year ended 31 December 2012At 1 January 2012


248



4,047



(183
)


168



(119
)


6,358



41



10,560Group profit for the financial year


-



-



-



-



-



538



2



540Other comprehensive income


-



-



-



-



(50
)


(122
)


(1
)


(173
)Total comprehensive income


-



-



-



-



(50
)


416



1



36728


Issue of share capital (net of expenses)


2



86



-



-



-



-



-



887


Share-based payment expense- Performance Share Plans (PSP)


-



-



-



14



-



-



-



14Treasury/own shares reissued


-



-



37



-



-



(37
)


-



-Share option exercises


-



-



-



-



-



16



-



1611


Dividends (including shares issued in lieu of dividends)


-



-



-



-



-



(450
)


(4
)


(454
)Acquisition of non-controlling interests


-



-



-



-



-



-



(2
)


(2
)At 31 December 2012


250



4,133



(146
)


182



(169
)


6,303



36



10,589


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Consolidated Statement of Cash Flows for the financial year ended 31 December 2014  2014
m


2013
m


2012
mNotesCash flows from operating activitiesProfit/(loss) before tax


761



(215
)


6468


Finance costs (net)


288



297



3059


Share of equity accounted investments result


(55
)


44



844


Profit on disposals


(77
)


(26
)


(230
)Group operating profit


917



100



8052


Depreciation charge


631



671



6862


Amortisation of intangible assets


44



54



442


Impairment charge


49



650



287


Share-based payment expense


16



15



14Other (primarily pension payments)


(66
)


(96
)


(152
)19


Net movement on working capital and provisions


35



77



(58
)Cash generated from operations


1,626



1,471



1,367Interest paid (including finance leases)


(262
)


(269
)


(258
)Corporation tax paid


(127
)


(110
)


(124
)Net cash inflow from operating activities


1,237



1,092



985Cash flows from investing activities4


Proceeds from disposals (net of cash disposed)


345



122



782Interest received


8



13



16Dividends received from equity accounted investments


30



33



3513


Purchase of property, plant and equipment


(435
)


(497
)


(544
)30


Acquisition of subsidiaries (net of cash acquired)


(151
)


(336
)


(418
)15


Other investments and advances


(3
)


(78
)


(56
)19


Deferred and contingent acquisition consideration paid


(26
)


(105
)


(30
)Net cash outflow from investing activities


(232
)


(848
)


(215
)Cash flows from financing activitiesProceeds from exercise of share options


22



19



16Acquisition of non-controlling interests


(1
)


(13
)


(2
)Increase in interest-bearing loans, borrowings and finance leases


901



1,491



487Net cash flow arising from derivative financial instruments


(11
)


64



1328


Treasury/own shares purchased


-



(6
)


-Repayment of interest-bearing loans, borrowings and finance leases


(934
)


(586
)


(394
)11


Dividends paid to equity holders of the Company


(353
)


(367
)


(362
)11


Dividends paid to non-controlling interests


(4
)


(1
)


(4
)Net cash (outflow)/inflow from financing activities


(380
)


601



(246
)Increase in cash and cash equivalents


625



845



524Reconciliation of opening to closing cash and cash equivalentsCash and cash equivalents at 1 January


2,540



1,747



1,246Translation adjustment


130



(52
)


(23
)Increase in cash and cash equivalents


625



845



52422


Cash and cash equivalents at 31 December


3,295



2,540



1,747






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Accounting Policies (including key accounting estimates and assumptions)  Basis of Preparation The Consolidated Financial Statements of CRH plc have been prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted by the International Accounting Standards Board. CRH plc, the Parent Company, is a publicly traded limited company incorporated and
domiciled in the Republic of Ireland. The Consolidated Financial Statements, which are presented in euro millions, have been prepared under
the historical cost convention as modified by the measurement at fair value of share-based payments, retirement benefit obligations and certain financial assets and liabilities including derivative financial instruments. The accounting policies set out below have been applied consistently by all the Groups subsidiaries, joint ventures and associates to all
periods presented in these Consolidated Financial Statements. Certain prior year disclosures have been amended to conform to current year
presentation. 161 million and 143 million has been reclassified from cost of sales to operating expenses in 2013 and 2012 respectively to align with current year presentation. Adoption of IFRS and International Financial Reporting Interpretations Committee (IFRIC) interpretations  (i)
The following standards and amendments have been adopted during the financial year  

Offsetting Financial Assets and Financial Liabilities (Amendments toIAS 32Financial Instruments: Presentation)  

Recoverable Amount Disclosures for Non-Financial Assets(Amendments toIAS 36Impairment of Assets)  

Novation of Derivatives and Continuation of Hedge Accounting (Amendments toIAS 39Financial Instruments: Recognition and Measurement)  

IFRIC 21 Levies The application of the above
standards and interpretations did not result in material changes to the results or financial position of the Group. (ii) IFRS and IFRIC interpretations being adopted in subsequent years IFRS 15 Revenue from Contracts with Customers will replace IAS 18 Revenue, IAS 11 Construction Contractsand related
interpretations. The new standard is applicable from 1 January 2017 and is subject to EU endorsement. IFRS 15 provides a new five step model to be applied to revenue arising from contracts with customers. The principles in IFRS 15 provide a more
structured approach to measuring and recognising revenue and may impact the timing and amount of revenue recognised from contracts with customers. The Group is currently assessing the impact of IFRS 15. IFRS 9 Financial Instruments reflects the final phase of the IASBs work on the replacement of IAS 39 Financial Instruments:
Recognition and Measurementand applies to the classification and measurement of financial assets and liabilities as defined in IAS 39, impairment, and the application of hedge accounting. IFRS 9 is effective from 1 January 2018 and is
awaiting EU endorsement. The Group is currently assessing the impact of IFRS 9. There are no other IFRS or IFRIC interpretations that are
effective subsequent to the CRH 2014 financial year-end that would have a material impact on the results or financial position of the Group. Key Accounting Policies which involve Estimates, Assumptions and Judgements The preparation of the Consolidated Financial Statements in accordance with IFRS requires management to make certain estimates, assumptions and
judgements that affect the application of accounting policies and the
 reported amounts of assets, liabilities, income and expenses. Management believes that the estimates, assumptions and judgements upon which it relies are reasonable based on the information
available to it at the time that those estimates, assumptions and judgements are made. In some cases, the accounting treatment of a particular transaction is specifically dictated by IFRS and does not require managements judgement in its
application. Management consider that their use of estimates, assumptions and judgements in the application of the Groups accounting
policies are interrelated and therefore discuss them together below. The critical accounting policies which involve significant estimates, assumptions or judgements, the actual outcome of which could have a material impact on the Groups
results and financial position outlined below, are as follows: Impairment of long-lived assets and goodwill  Notes 13 and 14 Impairment of property, plant and equipment and goodwill The carrying values of items of property, plant and equipment are reviewed for indicators of impairment at each reporting date and are subject
to impairment testing when events or changes in circumstances indicate that the carrying values may not be recoverable. Goodwill is subject to impairment testing on an annual basis and at any time during the year if an indicator of impairment is
considered to exist. A decision to dispose of a business unit represents one such indicator and in these circumstances the recoverable amount is assessed on a fair value less costs of disposal basis. In the year in which a business combination is
effected and where some or all of the goodwill allocated to a particular cash-generating unit arose in respect of that combination, the cash-generating unit is tested for impairment prior to the end of the relevant annual period. Property, plant and equipment assets are reviewed for potential impairment by applying a series of external and internal indicators specific to
the assets under consideration; these indicators encompass macroeconomic issues including the inherent cyclicality of the building materials sector, actual obsolescence or physical damage, a deterioration in forecast performance in the internal
reporting cycle and restructuring and rationalisation programmes. Where the carrying value exceeds the estimated recoverable amount (being
the greater of fair value less costs of disposal and value-in-use), an impairment loss is recognised by writing down the assets to their recoverable amount. In assessing value-in-use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. The estimates of future cash flows exclude
cash inflows or outflows attributable to financing activities and income tax. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined by reference to the cash-generating unit to which the asset
belongs. Impairment losses arising in respect of goodwill are not reversed once recognised. Goodwill relating to associates and joint
ventures is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Where indicators of impairment of an investment arise in accordance with the requirements of IAS 39 Financial
Instruments: Recognition and Measurement, the carrying amount is tested for impairment by comparing its recoverable amount with its carrying amount. The impairment testing process requires management to make significant judgements and estimates regarding the future cash flows expected to be
generated by the use of and, if applicable, the eventual disposal of, long-lived assets and goodwill as well as other factors to determine the fair value of the assets. Management periodically evaluates and updates the estimates based on the
conditions which influence these variables. A detailed discussion of the impairment methodology applied and key assumptions used by the Group in the context of long-lived assets and goodwill is provided in note 14 to the Consolidated Financial
Statements.


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LOGO


Accounting Policies|continued  The assumptions and conditions for determining impairments of long-lived assets and goodwill
reflect managements best assumptions and estimates, but these items involve inherent uncertainties described above, many of which are not under managements control. As a result, the accounting for such items could result in different
estimates or amounts if management used different assumptions or if different conditions occur in future accounting periods. Retirement benefit obligations 
Note 27 Costs arising in respect of the Groups defined contribution pension schemes are charged to the Consolidated Income
Statement in the period in which they are incurred. The Group has no legal or constructive obligation to pay further contributions in the event that the fund does not hold sufficient assets to meet its benefit commitments. The liabilities and costs associated with the Groups defined benefit pension schemes (both funded and unfunded) are assessed on the basis
of the projected unit credit method by professionally qualified actuaries and are arrived at using actuarial assumptions based on market expectations at the balance sheet date. The discount rates employed in determining the present value of the
schemes liabilities are determined by reference to market yields at the balance sheet date on high-quality corporate bonds of a currency and term consistent with the currency and term of the associated post-employment benefit obligations. The net surplus or deficit arising on the Groups defined benefit pension schemes, together with the liabilities associated with the
unfunded schemes, are shown either within non-current assets or non-current liabilities in the Consolidated Balance Sheet. The deferred tax impact of pension scheme surpluses and deficits is disclosed separately within deferred tax assets or
liabilities as appropriate. Remeasurements, comprising of actuarial gains and losses and the return on plan assets (excluding net interest), are recognised immediately in the Consolidated Balance Sheet with a corresponding debit or credit to
retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods. The defined benefit pension asset or liability in the Consolidated Balance Sheet comprises the total for each plan of the present value of the
defined benefit obligation less the fair value of plan assets out of which the obligations are to be settled directly. Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance policies. Fair value is based on
market price information and, in the case of published securities, it is the published bid price. The value of any defined benefit asset is limited to the present value of any economic benefits available in the form of refunds from the plan and
reductions in the future contributions to the plan. The Groups obligation in respect of post-employment healthcare and life assurance
benefits represents the amount of future benefit that employees have earned in return for service in the current and prior periods. The obligation is computed on the basis of the projected unit credit method and is discounted to present value using
a discount rate equating to the market yield at the balance sheet date on high-quality corporate bonds of a currency and term consistent with the currency and estimated term of the post-employment obligations. Assumptions The
assumptions underlying the actuarial valuations from which the amounts recognised in the Consolidated Financial Statements are determined (including discount rates, rates of increase in future compensation levels, mortality rates and healthcare cost
trend rates) are updated annually based on current economic conditions and for any relevant changes to the terms and conditions of the pension and post-retirement plans. These assumptions can be affected by (i) for the discount rate, changes in
the rates of return on high-quality corporate bonds; (ii) for future compensation levels, future labour market conditions and (iii) for healthcare cost trend rates, the rate of medical cost inflation in the
 relevant regions. The weighted average actuarial assumptions used and sensitivity analysis in
relation to the significant assumptions employed in the determination of pension and other post-retirement liabilities are contained in note 27 to the Consolidated Financial Statements. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the
obligations and expenses recognised in future accounting periods. The assets and liabilities of defined benefit pension schemes may exhibit significant period-on-period volatility attributable primarily to changes in bond yields and longevity. In
addition to future service contributions, significant cash contributions may be required to remediate past service deficits. Provisions for liabilities 
Note 25 A provision is recognised when the Group has a present obligation (either legal or constructive) as a result of a past event,
it is probable that a transfer of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group anticipates that a provision will be reimbursed, the reimbursement is
recognised as a separate asset only when it is virtually certain that the reimbursement will arise. The expense relating to any provision is presented in the Consolidated Income Statement net of any reimbursement. Provisions are measured at the
present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as an interest expense. Provisions arising on business combination activity are recognised only to
the extent that they would have qualified for recognition in the financial statements of the acquiree prior to acquisition. Provisions are not recognised for future operating losses. Rationalisation and redundancy provisions Provisions for rationalisation and redundancy are established when a detailed restructuring plan has been drawn up, resolved upon by the
responsible decision-making level of management and communicated to the employees who are affected by the plan. These provisions are recognised at the present value of future disbursements and cover only expenses that arise directly from
restructuring measures and are necessary for restructuring; these provisions exclude costs related to future business operations. Restructuring measures may include the sale or termination of business units, site closures and relocation of business
activities, changes in management structure or a fundamental reorganisation of departments or business units. Environmental and remediation
provisions The measurement of environmental and remediation provisions is based on an evaluation of currently available facts
with respect to each individual site and considers factors such as existing technology, currently enacted laws and regulations and prior experience in remediation of sites. Inherent uncertainties exist in such evaluations primarily due to unknown
conditions, changing governmental regulations and legal standards regarding liability, the protracted length of the clean-up periods and evolving technologies. The environmental and remediation liabilities provided for in the Consolidated Financial
Statements reflect the information available to management at the time of determination of the liability and are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. Due to the
inherent uncertainties described above, many of which are not under managements control, the accounting for such items could result in different amounts if management used different assumptions or if different conditions occur in future
accounting periods. Legal contingencies The status of each significant claim and legal proceeding in which the Group is involved is reviewed by management on a periodic basis and the
Groups potential financial exposure is assessed. If the potential loss from any claim or legal proceeding is considered probable, and the amount can be estimated, a liability is recognised for the estimated loss. Because of the uncertainties
inherent in such matters, the related provisions are based on






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the best information available at the time; the issues taken into account by management and
factored into the assessment of legal contingencies include, as applicable, the status of settlement negotiations, interpretations of contractual obligations, prior experience with similar contingencies/ claims, the availability of insurance to
protect against the downside exposure and advice obtained from legal counsel and other third parties. As additional information becomes available on pending claims, the potential liability is reassessed and revisions are made to the amounts accrued
where appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position of the Group. Taxation  current and deferred  Notes 10 and 26 Current tax represents the expected tax payable (or recoverable) on the taxable profit for the year using tax rates enacted for the period. Any
interest or penalties arising are included within current tax. Where items are accounted for outside of profit or loss, the related income tax is recognised either in other comprehensive income or directly in equity as appropriate. Deferred tax is recognised using the liability method on temporary differences arising at the balance sheet date between the tax bases of assets
and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; in addition, deferred income tax is not accounted for
if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. For the most part, no provision has been
made for temporary differences applicable to investments in subsidiaries and joint ventures as the Group is in a position to control the timing of reversal of the temporary differences and it is probable that the temporary differences will not
reverse in the foreseeable future. However, a temporary difference has been recognised to the extent that specific assets have been identified for sale or where there is a specific intention to unwind the temporary difference in the foreseeable
future. Due to the absence of control in the context of associates (significant influence only), deferred tax liabilities are recognised where appropriate in respect of CRHs investments in these entities on the basis that the exercise of
significant influence would not necessarily prevent earnings being remitted by other shareholders in the undertaking. Deferred tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets and liabilities are not subject to discounting. Deferred tax assets are recognised in respect of all deductible temporary differences, carry-forward of unused tax credits and unused tax losses to the extent that it is probable
that taxable profits will be available against which the temporary differences can be utilised. The carrying amounts of deferred tax assets are subject to review at each balance sheet date and are reduced to the extent that future taxable profits
are considered to be inadequate to allow all or part of any deferred tax asset to be utilised. The Groups income tax charge is based
on reported profit and expected statutory tax rates, which reflect various allowances and reliefs and tax planning opportunities available to the Group in the multiple tax jurisdictions in which it operates. The determination of the Groups
provision for income tax requires certain judgements and estimates in relation to matters where the ultimate tax outcome may not be certain. The recognition or non-recognition of deferred tax assets as appropriate also requires judgement as it
involves an assessment of the future recoverability of those assets. In addition, the Group is subject to tax audits which can involve complex issues that could require extended periods for resolution. Although management believes that the estimates
included in the Consolidated Financial Statements and its tax return positions are reasonable, no assurance can be given that the final outcome of these
 matters will not be different than that which is reflected in the Groups historical income tax provisions and accruals. Any such differences could have a material impact on the income tax
provision and profit for the period in which such a determination is made. Property, plant and equipment  Note 13 The Groups accounting policy for property, plant and equipment is considered critical because the carrying value of
7,422 million at 31 December 2014 represents a significant portion (34%) of total assets at that date. Property, plant and equipment are stated at cost less any accumulated depreciation and any accumulated impairments except for
certain items that had been revalued to fair value prior to the date of transition to IFRS (1 January 2004). Repair and maintenance
expenditure is included in an assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. All other repair and maintenance expenditure is charged to the Consolidated Income Statement during the financial period in which it is incurred. Borrowing costs incurred in the construction of major assets which take a substantial period of time to complete are capitalised in the
financial period in which they are incurred. In the application of the Groups accounting policy, judgement is exercised by management
in the determination of residual values and useful lives. Depreciation and depletion is calculated to write off the book value of each item of property, plant and equipment over its useful economic life on a straight-line basis at the following
rates: Land and buildings: The book value of mineral-bearing land, less an estimate of its residual value, is depleted over
the period of the mineral extraction in the proportion which production for the year bears to the latest estimates of proven and probable mineral reserves. Land other than mineral-bearing land is not depreciated. In general, buildings are
depreciated at 2.5% per annum (p.a.). Plant and machinery:These are depreciated at rates ranging from 3.3% p.a. to
20% p.a. depending on the type of asset. Plant and machinery includes transport which is, on average, depreciated at 20% p.a. Depreciation
methods, useful lives and residual values are reviewed at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the
depreciation period or method as appropriate on a prospective basis. For the Groups accounting policy on impairment of property, plant and equipment please see impairment of long-lived assets and goodwill. Other Significant Accounting Policies Basis of
consolidation The Consolidated Financial Statements include the financial statements of the Parent Company and all subsidiaries, joint
ventures and associates, drawn up to 31 December each year. The financial year-ends of the Groups subsidiaries, joint ventures and associates are co-terminous. Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases. A change in the ownership interest of a subsidiary without a change in control is accounted for as an equity transaction. Non-controlling interests represent the portion of the equity of a subsidiary not attributable either directly or indirectly to the Parent
Company and are presented separately in the Consolidated Income Statement and within equity in the Consolidated Balance Sheet, distinguished from Parent


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LOGO


Accounting Policies|continued  Company shareholders equity. Acquisitions of non-controlling interests are accounted for as
transactions with equity holders in their capacity as equity holders and therefore no goodwill is recognised as a result of such transactions. On an acquisition by acquisition basis, the Group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interests proportionate share of the acquirees net assets. Investments in
associates and joint ventures  Notes 9 and 15 An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of
the joint venture. Joint control is the contractually agreed sharing of control of the arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The Groups investments in its associates and joint ventures are accounted for using the equity method from the date significant
influence/joint control is deemed to arise until the date on which significant influence/joint control ceases to exist or when the interest becomes classified as an asset held for sale. The Consolidated Income Statement reflects the Groups share of profit after tax of the related associates and joint ventures. Investments
in associates and joint ventures are carried in the Consolidated Balance Sheet at cost, adjusted in respect of post-acquisition changes in the Groups share of net assets, less any impairment in value. Loans advanced to equity accounted
investments that have the characteristics of equity financing are also included in the investment held on the Consolidated Balance Sheet. If necessary, impairment losses on the carrying amount of an investment are reported within the Groups
share of equity accounted investments results in the Consolidated Income Statement. If the Groups share of losses exceeds the carrying amount of an associate or joint venture, the carrying amount is reduced to nil and recognition of
further losses is discontinued except to the extent that the Group has incurred obligations in respect of the associate or joint venture. Transactions eliminated on consolidation Intra-group balances and transactions, income and expenses, and any unrealised gains or losses arising from such transactions, are eliminated in
preparing the Consolidated Financial Statements. Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the Groups interest in the entity. Unrealised losses are eliminated in the same
manner as unrealised gains, but only to the extent that there is no evidence of impairment in the Groups interest in the entity. Revenue recognition Revenue represents the value of goods and services supplied and is net of trade discounts and value added tax/sales tax. Other than in
the case of construction contracts, revenue is recognised to the extent that revenue and related costs incurred or to be incurred are subject to reliable measurement, that it is probable that economic benefits will flow to the Group and that the
significant risks and rewards of ownership have passed to the buyer, usually on delivery of the goods. Construction contracts The Group engages primarily in the performance of fixed price contracts, as opposed to cost plus contracts. Contract costs are
recognised as incurred. When the outcome of a contract can be estimated reliably the Group recognises revenue in accordance with the
percentage-of-completion method. The completion percentage is generally measured based on the proportion of contract costs incurred at the balance sheet date relative to the total estimated costs of the contract. When the outcome of a construction
contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred where it is probable that these costs will be recoverable.
 When it is probable that total contract costs will exceed total contract revenue, the expected
loss is recognised immediately as an expense. Revenue and/or costs in respect of variations or contracts claims and incentive payments, to the extent that they arise, are recognised when it is probable that the amount, which can be measured
reliably, will be recovered from/paid to the customer. If circumstances arise that may change the original estimates of revenues, costs or
extent of progress towards completion, estimates are revised. These revisions may result in increases or decreases in revenue or costs and are reflected in income in the period in which the circumstances that give rise to the revision became known
by management. Segment reporting  Note 1 Operating segments are reported in a manner consistent with the internal organisational and management structure and the internal reporting
information provided to the Chief Operating Decision-Maker who is responsible for allocating resources and assessing performance of the operating segments. Assets
and liabilities held for sale  Note 4 Non-current assets and disposal groups classified as held for sale are measured at the
lower of carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as held for sale if their
carrying amounts will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present
condition subject only to terms that are usual and customary for sales of such assets. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification
as held for sale. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
The Group ceases to use the equity method of accounting from the date on which an interest in a joint venture or associate becomes held for sale. Non-current assets classified as held for sale and liabilities directly associated with those assets
are presented separately as current items in the Consolidated Balance Sheet. Share-based payments  Note 7 The Group operates a number of equity-settled share-based payment plans. Its policy in relation to the granting of share options and awards
under these plans, together with the nature of the underlying market and non-market performance and other vesting conditions, are addressed in the Directors Remuneration Report on page 112. The Group has no exposure in respect of cash-settled
share-based payment transactions and share-based payment transactions with cash alternatives. Share options Fair value is determined on the basis that the services to be rendered by employees as consideration for the granting of share options will be
received over the vesting period, which is assessed as at the grant date. The share options granted by the Company are at market value at date of grant and are not subject to market-based vesting conditions within the meaning of IFRS 2
Share-based Payment. The cost is recognised, together with a corresponding increase in equity, over the period in which the
performance and/or service conditions are fulfilled. The cumulative expense recognised at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Groups best estimate of the number of
equity instruments that will ultimately vest. The Consolidated Income Statement expense/credit for a period represents the movement in cumulative expense recognised at the beginning and end of that period. The cumulative charge to the Consolidated
Income Statement is reversed only where the performance condition is not met or where an employee in receipt of share options leaves service prior to completion of the expected vesting period and those options forfeit in consequence.






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No expense is recognised for awards that do not ultimately vest, except for share-based payments
where vesting is conditional upon a non-vesting condition which is treated as vesting irrespective of whether or not it is satisfied, provided that all other performance and/or service conditions are satisfied. Where an award is cancelled, it is treated as if it is vested on the date of cancellation, and any expense not yet recognised for the award is
recognised immediately. This includes any award where non-vesting conditions within the control of either the Company or the employee are not met. All cancellations of awards are treated equally. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when
the options are exercised. The dilutive effect of outstanding options is reflected as additional share dilution in the determination of
diluted earnings per share. To the extent that the Group receives a tax deduction relating to the services paid in shares, deferred tax in
respect of share options is provided on the basis of the difference between the market price of the underlying equity as at the date of the financial statements and the exercise price of the option; where the amount of any tax deduction (or
estimated future tax deduction) exceeds the amount of the related cumulative remuneration expense, the current or deferred tax associated with the excess is recognised directly in equity. Awards under the Performance Share Plans All awards granted under the 2006 Performance Share Plan and 75% of the awards granted under the 2014 Performance Share Plan are subject to a
total shareholder return-based (and hence market-based) vesting condition. Accordingly, the fair value assigned to the related equity instruments at the grant date is adjusted so as to reflect the anticipated likelihood as at the grant date of
achieving the market-based vesting condition. Awards are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance and/or service conditions are satisfied. The remaining 25% of awards granted under the 2014 Performance Share Plan are subject to a cumulative cash flow target (non-market based)
vesting condition. The fair value of the awards is calculated as the market price of the shares at the date of grant. No expense is recognised for awards that do not ultimately vest. At the balance sheet date the estimate of the level of vesting is
reviewed and any adjustment necessary is recognised in the Consolidated Income Statement. Awards under the Restricted Share Plan The fair value of shares granted under the Restricted Share Plan is calculated as the market price of the shares at the date of
grant reduced by the present value of dividends expected to be paid over the vesting period. Information on the models used by the Group to
estimate the fair value of awards granted is included in note 7. Business combinations  Note 30 The Group applies the acquisition method in accounting for business combinations. The cost of an acquisition is measured as the aggregate of the
consideration transferred (excluding amounts relating to the settlement of pre-existing relationships), the amount of any non-controlling interest in the acquiree and, in a business combination achieved in stages, the acquisition-date fair value of
the acquirers previously-held equity interest in the acquiree. Transaction costs that the Group incurs in connection with a business combination are expensed as incurred. To the extent that settlement of all or any part of consideration for a business combination is deferred, the fair value of the deferred
component is determined through discounting the amounts payable to their present value at the date of exchange. The discount component is unwound as an interest charge in the Consolidated Income Statement over the life of the obligation. Any
contingent consideration is recognised at fair value at the acquisition date and included in the cost of the acquisition. The fair value of contingent consideration at acquisition date is arrived at through
 discounting the expected payment (based on scenario modelling) to present value. In general, in order for contingent consideration to become payable, pre-defined profit and/or profit/net asset
ratios must be exceeded. Subsequent changes to the fair value of the contingent consideration will be recognised in profit or loss unless the contingent consideration is classified as equity, in which case it is not remeasured and settlement is
accounted for within equity. The assets and liabilities arising on business combination activity are measured at their acquisition-date
fair values. Contingent liabilities assumed in business combination activity are recognised as of the acquisition date, where such contingent liabilities are present obligations arising from past events and their fair value can be measured reliably.
In the case of a business combination achieved in stages, the acquisition-date fair value of the acquirers previously-held equity interest in the acquiree is remeasured to fair value as at the acquisition date through profit or loss. When the
initial accounting for a business combination is determined provisionally, any adjustments to the provisional values allocated to the consideration, identifiable assets or liabilities (and contingent liabilities, if relevant) are made within the
measurement period, a period of no more than one year from the acquisition date. Goodwill  Note 14 Goodwill arising on a business combination is initially measured at cost, being the excess of the cost of an acquisition over the net
identifiable assets and liabilities assumed at the date of acquisition and relates to the future economic benefits arising from assets which are not capable of being individually identified and separately recognised. Following initial recognition,
goodwill is measured at cost less any accumulated impairment losses. If the cost of the acquisition is lower than the fair value of the net assets of the subsidiary acquired, the identification and measurement of the related assets and liabilities
and contingent liabilities are revisited and the cost is reassessed with any remaining balance recognised immediately in the Consolidated Income Statement. The carrying amount of goodwill in respect of associates and joint ventures is included in investments accounted for using the equity method
(i.e. within financial assets) in the Consolidated Balance Sheet. Where a subsidiary is disposed of or terminated through closure, the
carrying value of any goodwill of that subsidiary is included in the determination of the net profit or loss on disposal/termination. Intangible assets (other
than goodwill) arising on business combinations  Note 14 An intangible asset is capitalised separately from goodwill as part of a
business combination at cost (fair value at date of acquisition). Subsequent to initial recognition, intangible assets are carried at cost
less any accumulated amortisation and any accumulated impairment losses. The carrying values of definite-lived intangible assets (the Group does not currently have any indefinite-lived intangible assets other than goodwill) are reviewed for
indicators of impairment at each reporting date and are subject to impairment testing when events or changes in circumstances indicate that the carrying values may not be recoverable. Intangible assets are amortised on a straight-line basis. In general, definite-lived intangible assets are amortised over periods ranging from
one to ten years, depending on the nature of the intangible asset. Amortisation periods, useful lives, expected patterns of consumption and
residual values are reviewed at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method as
appropriate on a prospective basis. Leases  Notes 3 and 29 Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Operating lease rentals
are charged to the Consolidated Income Statement on a straight-line basis over the lease term.


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Accounting Policies|continued  Other financial assets  Note 15 All investments are initially recognised at the fair value of consideration given plus any directly attributable transaction costs. Where equity
investments are actively traded in organised financial markets, fair value is determined by reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date. Unquoted equity investments are recorded at
historical cost given that it is impracticable to determine fair value in accordance with IAS 39 and are included within financial assets in the Consolidated Balance Sheet. Inventories and construction contracts  Note 16 Inventories are stated at the lower of cost and net realisable value. Cost is based on the first-in, first-out principle (and weighted average,
where appropriate) and includes all expenditure incurred in acquiring the inventories and bringing them to their present location and condition. Raw materials are valued on the basis of purchase cost on a first-in, first-out basis. In the case of
finished goods and work-in-progress, cost includes direct materials, direct labour and attributable overheads based on normal operating capacity and excludes borrowing costs. Net realisable value is the estimated proceeds of sale less all further costs to completion, and less all costs to be incurred in marketing,
selling and distribution. Estimates of net realisable value are based on the most reliable evidence available at the time the estimates are made, taking into consideration fluctuations of price or cost directly relating to events occurring after the
end of the period, the likelihood of short-term changes in buyer preferences, product obsolescence or perishability (all of which are generally low given the nature of the Groups products) and the purpose for which the inventory is held.
Materials and other supplies held for use in the production of inventories are not written down below cost if the finished goods, in which they will be incorporated, are expected to be sold at or above cost. Amounts recoverable on construction contracts, which are included in receivables, are stated at the net invoiced value of the work done less
amounts received as progress payments on account. Cumulative costs incurred, net of amounts transferred to cost of sales, after deducting foreseeable losses, provisions for contingencies and payments on account not matched with revenue, are included
as construction contract balances in inventories. Cost includes all expenditure directly related to specific projects and an allocation of fixed and variable overheads incurred in the Groups contract activities based on normal operating
capacity. Trade and other receivables  Note 17 Trade receivables are carried at original invoice amount less an allowance for potentially uncollectible debts. Provision is made when there is
objective evidence that the Group will not be in a position to collect the associated debts. Bad debts are written-off to the Consolidated Income Statement on identification. Cash and cash equivalents  Note 22 Cash and
cash equivalents comprise cash balances held for the purpose of meeting short-term cash commitments and investments which are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Bank overdrafts
are included within current interest-bearing loans and borrowings in the Consolidated Balance Sheet. Where the overdrafts are repayable on demand and form an integral part of cash management, they are netted against cash and cash equivalents for the
purposes of the Consolidated Statement of Cash Flows. Interest-bearing loans and borrowings  Note 23 All loans and borrowings are initially recorded at the fair value of the consideration received net of directly attributable transaction costs.
Subsequent to initial recognition, current and non-current interest-bearing loans and borrowings are, in general, measured at amortised cost employing the effective interest methodology. Fixed rate term loans, which have been hedged to floating
rates (using interest rate swaps), are measured at amortised cost adjusted for changes in value attributable
 to the hedged risks arising from changes in underlying market interest rates. The computation of
amortised cost includes any issue costs and any discount or premium materialising on settlement. Gains and losses are recognised in the
Consolidated Income Statement through amortisation on the basis of the period of the loans and borrowings. Borrowing costs arising on
financial instruments are recognised as an expense in the period in which they are incurred (unless capitalised as part of the cost of property, plant and equipment). Derivative financial instruments and hedging practices  Note 24 In order to manage interest rate, foreign currency and commodity risks and to realise the desired currency profile of borrowings, the Group
employs derivative financial instruments (principally interest rate swaps, currency swaps and forward foreign exchange contracts). Derivative financial instruments are recognised initially at fair value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair value. The carrying value of derivatives is fair value based on discounted future cash flows and adjusted for counterparty risk. Future floating rate cash flows are estimated based on future
interest rates (from observable yield curves at the end of the reporting period). Fixed and floating rate cash flows are discounted at future interest rates and translated at period-end foreign exchange rates. At the inception of a derivative transaction, the Group documents the relationship between the hedged item and the hedging instrument together
with its risk management objective and the strategy underlying the proposed transaction. The Group also documents its assessment, both at the inception of the hedging relationship and subsequently on an ongoing basis, of the effectiveness of the
hedging instrument in offsetting movements in the fair values or cash flows of the hedged items. Where derivatives do not fulfil the criteria for hedge accounting, changes in fair values are reported in the Consolidated Income Statement. Fair value and cash flow hedges The Group uses fair value hedges and cash flow hedges in its treasury activities. For the purposes of hedge accounting, hedges are classified
either as fair value hedges (which entail hedging the exposure to movements in the fair value of a recognised asset or liability or an unrecognised firm commitment that could affect profit or loss) or cash flow hedges (which hedge exposure to
fluctuations in future cash flows derived from a particular risk associated with a recognised asset or liability, or a highly probable forecast transaction that could affect profit or loss). Where the conditions for hedge accounting are satisfied and the hedging instrument concerned is classified as a fair value hedge, any gain or
loss stemming from the remeasurement of the hedging instrument to fair value is reported in the Consolidated Income Statement. In addition, any gain or loss on the hedged item which is attributable to the hedged risk is adjusted against the carrying
amount of the hedged item and reflected in the Consolidated Income Statement. Where the adjustment is to the carrying amount of a hedged interest-bearing financial instrument, the adjustment is amortised to the Consolidated Income Statement with the
objective of achieving full amortisation by maturity. Where a derivative financial instrument is designated as a hedge of the variability
in cash flows of a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective part of any gain or loss on the derivative financial instrument is recognised as other comprehensive income,
net of the income tax effect, with the ineffective portion being reported in the Consolidated Income Statement. The associated gains or losses that had previously been recognised as other comprehensive income are transferred to the Consolidated
Income Statement contemporaneously with the materialisation of the hedged transaction. Any gain or loss arising in respect of changes in the time value of the derivative financial instrument is excluded from the measurement of hedge effectiveness
and is recognised immediately in the Consolidated Income Statement.






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Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or
exercised, or no longer qualifies for hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised as other comprehensive income remains there until the forecast transaction occurs. If a hedged
transaction is no longer anticipated to occur, the net cumulative gain or loss previously recognised as other comprehensive income is transferred to the Consolidated Income Statement in the period. Net investment hedges Where foreign currency borrowings provide a hedge against a net investment in a foreign operation, and the hedge is deemed to be effective,
foreign exchange differences are taken directly to a foreign currency translation reserve. The ineffective portion of any gain or loss on the hedging instrument is recognised immediately in the Consolidated Income Statement. Cumulative gains and
losses remain in equity until disposal of the net investment in the foreign operation at which point the related differences are transferred to the Consolidated Income Statement as part of the overall gain or loss on sale. Fair value hierarchy  Note 24 For financial
reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: valuation techniques for which the lowest level of inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly; and Level 3: valuation techniques for which the lowest level of inputs that have a significant effect on the
recorded fair value are not based on observable market data. Share capital and dividends  Notes 11 and 28 Treasury Shares and own shares Ordinary Shares acquired by the Parent Company or purchased by the Employee Benefit Trust on behalf of the Parent Company under the terms of the
Performance Share Plans and the Restricted Share Plan are deducted from equity and presented on the face of the Consolidated Balance Sheet. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Parent
Companys Ordinary Shares. Dividends Dividends on Ordinary Shares are recognised as a liability in the Consolidated Financial Statements in the period in which they are declared by
the Parent Company. Emission rights Emission
rights are accounted for such that a liability is recognised only in circumstances where emission rights have been exceeded from the perspective of the Group as a whole and the differential between actual and permitted emissions will have to be
remedied through the purchase of the required additional rights at fair value. Assets and liabilities arising in respect of under and over-utilisation of emission credits respectively are accordingly netted against one another in the preparation of
the Consolidated Financial Statements. To the extent that excess emission rights are disposed of during a financial period, the profit or loss materialising thereon is recognised immediately within cost of sales in the Consolidated Income Statement. Foreign currency translation Items included in
the financial statements of each of the Groups entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The Consolidated Financial Statements are presented
in euro, which is the presentation currency of the Group and the functional currency of the Parent Company.
 Transactions in foreign currencies are recorded at the rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All currency translation differences are taken to the Consolidated Income Statement with the
exception of all monetary items that provide an effective hedge for a net investment in a foreign operation. These are recognised in other comprehensive income until the disposal of the net investment, at which time they are recognised in the
Consolidated Income Statement. Results and cash flows of subsidiaries, joint ventures and associates with non-euro functional currencies
have been translated into euro at average exchange rates for the year, and the related balance sheets have been translated at the rates of exchange ruling at the balance sheet date. Adjustments arising on translation of the results and net assets of
non-euro subsidiaries, joint ventures and associates are recognised in a separate translation reserve within equity, net of differences on related currency borrowings. All other translation differences are taken to the Consolidated Income Statement.
Goodwill and fair value adjustments arising on acquisition of a foreign operation are regarded as assets and liabilities of the foreign operation and are translated accordingly. The principal exchange rates used for the translation of results, cash flows and balance sheets into euro were as follows:  Average


Year-endeuro 1 =

2014


2013


2012


2014


2013


2012US Dollar


1.3290



1.3281



1.2848



1.2141



1.3791



1.3194Pound Sterling


0.8062



0.8493



0.8109



0.7789



0.8337



0.8161Polish Zloty


4.1839



4.1975



4.1847



4.2732



4.1543



4.0740Ukrainian Hryvnia


15.8908



10.8339



10.3933



19.1814



11.3583



10.6259Swiss Franc


1.2147



1.2311



1.2053



1.2024



1.2276



1.2072Canadian Dollar


1.4664



1.3684



1.2842



1.4063



1.4671



1.3137Argentine Peso


10.7785



7.2892



5.8492



10.2645



8.9910



6.4890Turkish Lira


2.9068



2.5335



2.3135



2.8320



2.9605



2.3551Indian Rupee


81.0576



77.9300



68.5973



76.7190



85.3660



72.5600Chinese Renminbi


8.1883



8.1646



8.1052



7.5358



8.3491



8.2207


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Notes on Consolidated Financial Statements 1. Segment Information CRH is a
diversified international building materials group which manufactures and distributes a range of building materials products from the fundamentals of heavy materials and elements to construct the frame, through value-added products that complete the
building envelope, to distribution channels which service construction fit-out and renewal. In conjunction with the ongoing portfolio review, the Group reorganised its European business in 2014. Following this, the Group is now organised into six
segments: Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products and Americas Distribution. Comparative segment information has been restated. No operating segments have been aggregated to form these segments. Europe Heavyside businesses are predominantly engaged in the manufacturing and supply of cement, aggregates, readymixed and precast concrete,
concrete landscaping and asphalt products. Europe Lightside businesses are predominately engaged in the production and supply of construction
accessories, shutters & awnings, fencing and composite access chambers. Europe Distribution businesses are predominantly engaged in
supplying Do-It-Yourself (DIY), General Merchants and Sanitary, Heating and Plumbing (SHAP) businesses catering to the general public and small and medium-sized builders, selling a range of bricks, cement, sanitary, heating, plumbing and other
building products. Americas Materials businesses are predominantly engaged in the production and sale of aggregates, asphalt and readymixed
concrete products and provide asphalt paving services. Americas Products businesses are predominantly engaged in the production and sale of
concrete masonry and hardscapes, clay brick, packaged lawn and garden products, packaged cement mixes, fencing, utility, drainage and structural precast products, glass and aluminium glazing systems and construction accessories. Americas Distribution businesses are predominantly engaged in supplying Exterior Products such as roofing and siding and Interior Products such as
gypsum wallboard, metal studs and acoustical ceiling systems. The principal factors employed in the identification of the six segments reflected in
this note include the Groups organisational structure in 2014, the nature of the reporting lines to the Chief Operating Decision-Maker (as defined in IFRS 8 Operating Segments), the structure of internal reporting documentation such as
management accounts and budgets, and the degree of homogeneity of products, services and geographical areas within each of the segments from which revenue is derived. The Chief Operating Decision-Maker monitors the operating results of segments separately in order to allocate resources between segments and to assess
performance. Segment performance is predominantly evaluated based on operating profit. As performance is also evaluated using operating profit before depreciation and amortisation (EBITDA (as defined)*), supplemental information based on EBITDA (as
defined)* is also provided below. Given that net finance costs and income tax are managed on a centralised basis, these items are not allocated between operating segments for the purposes of the information presented to the Chief Operating
Decision-Maker and are accordingly omitted from the detailed segmental analysis below. There are no asymmetrical allocations to reporting segments which would require disclosure.  *
EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share
of equity accounted investments result after tax.






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##### Table of Contents

1. Segment Information|continued A. Operating segments disclosures - Consolidated Income Statement data  Continuing operations - year ended 31 DecemberGroup operating profitbefore depreciation and


Depreciation,amortisation (EBITDA


amortisation and


Group operating profitRevenue


(as defined)*)


impairment (i)


(EBIT)2014


2013


2012


2014


2013


2012


2014


2013


2012


2014


2013


2012m


m


m


m


m


m


m


m


m


m


m


mEurope Heavyside


3,929



3,786



3,972



380



326



426



229



721



239



151



(395
)


187Europe Lightside


913



856



888



94



71



78



23



43



29



71



28



49Europe Distribution


3,999



3,936



3,956



190



186



217



78



80



72



112



106



145Europe


8,841



8,578



8,816



664



583



721



330



844



340



334



(261
)


381Americas Materials


5,070



4,721



4,886



609



557



555



254



331



276



355



226



279Americas Products


3,225



3,068



2,806



263



246



204



118



178



118



145



68



86Americas Distribution


1,776



1,664



1,576



105



89



83



22



22



24



83



67



59Americas


10,071



9,453



9,268



977



892



842



394



531



418



583



361



424Total Group


18,912



18,031



18,084



1,641



1,475



1,563



724



1,375



758



917



100



805Profit on disposals (ii)



























77



26



230Finance costs less income



























(246
)


(249
)


(256
)Other financial expense



























(42
)


(48
)


(49
)Share of equity accounted investments profit/(loss) (iii)















55



(44
)


(84
)Profit/(loss) before tax



























761



(215
)


646(i) See notes 13 and 14 for details of the impairment charge.(iii) Share of equity(ii) Profit/(loss) on


accounted investmentsdisposals (note 4)


profit/(loss) (note 9)Europe Heavyside















38



6



158



35



(60
)


(99
)Europe Lightside















1



6



44



-



-



-Europe Distribution















6



(2
)


3



13



9



14Europe















45



10



205



48



(51
)


(85
)Americas Materials















11



19



24



7



7



1Americas Products















20



(3
)


1



-



-



-Americas Distribution















1



-



-



-



-



-Americas















32



16



25



7



7



1Total Group















77



26



230



55



(44
)


(84
)  *
EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share
of equity accounted investments result after tax.


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##### Table of Contents

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1. Segment Information|continued B. Operating segments disclosures - Consolidated Balance Sheet data  Continuing operations - as at 31 DecemberTotal assets


Total liabilities2014


2013


2014


2013m


m


m


mEurope Heavyside


3,864



4,605



1,468



1,428Europe Lightside


761



768



215



180Europe Distribution


2,221



2,217



644



542Europe


6,846



7,590



2,327



2,150Americas Materials


6,245



5,510



969



772Americas Products


2,542



2,360



679



656Americas Distribution


951



853



283



255Americas


9,738



8,723



1,931



1,683Total Group


16,584



16,313



4,258



3,833Reconciliation to total assets as reported in the Consolidated Balance Sheet:Investments accounted for using the equity method


1,329



1,340Other financial assets


23



23Derivative financial instruments (current and non-current)


102



80Income tax assets (current and deferred)


186



133Cash and cash equivalents


3,262



2,540Assets held for sale


531



-Total assets as reported in the Consolidated Balance Sheet


22,017



20,429Reconciliation to total liabilities as reported in the Consolidated Balance Sheet:Interest-bearing loans and borrowings (current and non-current)










5,866



5,540Derivative financial instruments (current and non-current)










23



53Income tax liabilities (current and deferred)










1,459



1,317Liabilities associated with assets classified as held for sale










213



-Total liabilities as reported in the Consolidated Balance Sheet










11,819



10,743 C. Operating segments disclosures - other items Additions to non-current assets  Continuing operations - year ended 31 DecemberProperty, plant and


Financial assets


Total Groupequipment (note 13)


(note 15)2014


2013


2012


2014


2013


2012


2014


2013


2012m


m


m


m


m


m


m


m


mEurope Heavyside


113



132



165



-



70



44



113



202



209Europe Lightside


14



13



20



-



-



2



14



13



22Europe Distribution


36



49



70



-



1



1



36



50



71Europe


163



194



255



-



71



47



163



265



302Americas Materials


173



199



212



3



7



9



176



206



221Americas Products


81



83



69



-



-



-



81



83



69Americas Distribution


18



21



8



-



-



-



18



21



8Americas


272



303



289



3



7



9



275



310



298Total Group


435



497



544



3



78



56



438



575



600






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##### Table of Contents

1. Segment Information|continued D. Entity-wide disclosures Section 1: Information
about products and services The Groups revenue from external customers in respect of its principal products and services is analysed in the
disclosures above. Segment revenue includes 3,351 million (2013: 3,268 million, 2012:
3,456 million) in respect of revenue applicable to construction contracts. The bulk of our construction activities are performed by our Americas Materials reportable segment, are for the most
part short-term in nature and are generally completed within the same financial reporting period. Revenue derived through the supply of services and
intersegment revenue is not material to the Group. The transfer pricing policy implemented by the Group between operating segments and across its constituent entities is described in greater detail in note 31. In addition, due to the nature of
building materials, which exhibit a low value-to-weight ratio, the Groups revenue streams include a low level of cross-border transactions. Section 2: Information about geographical areas and customers CRH has a presence in 34 countries worldwide. The revenues from external customers and non-current assets (as defined in IFRS 8) attributable to the
country of domicile and all foreign countries of operation are as follows; individual foreign countries which exceed 10% of total external Group revenue have been highlighted separately on the basis of materiality.  Year ended 31 December


As at 31 DecemberRevenue by destination


Non-current assets2014


2013


2012


2014


2013m


m


m


m


mCountry of domicile - Republic of Ireland


306



278



267



477



475United States of America


9,650



8,991



8,880



6,948



6,241Benelux (mainly the Netherlands)


2,350



2,324



2,327



1,231



1,280Other


6,606



6,438



6,610



4,268



4,794Total Group


18,912



18,031



18,084



12,924



12,790 There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8.
The individual entities within the Group have a large number of customers spread across various activities, end-uses and geographies.   2. Cost Analysis  2014


2013


2012m


m


mCost of sales analysisRaw materials and goods for resale


7,527



7,240



7,282Employment costs (note 5)


1,985



1,974



1,946Energy conversion costs


655



644



670Repairs and maintenance


452



421



411Depreciation, amortisation and impairment (i)


532



792



559Change in inventory (note 19)


34



37



(93
)Other production expenses (primarily sub-contractor costs and equipment rental)


2,242



2,045



2,243Total


13,427



13,153



13,018Operating costs analysisSelling and distribution costs


3,143



3,054



3,035Administrative expenses


1,425



1,724



1,226Total


4,568



4,778



4,261 (i) Depreciation, amortisation and impairment analysis  Cost of sales


Operating costs


Total2014


2013


2012


2014


2013


2012


2014


2013


2012m


m


m


m


m


m


m


m


mDepreciation and depletion (note 13)


485



521



538



146



150



148



631



671



686Impairment of property, plant and equipment (note 13)


47



271



21



2



4



4



49



275



25Impairment of intangible assets (note 14)


-



-



-



-



375



3



-



375



3Amortisation of intangible assets (note 14)


-



-



-



44



54



44



44



54



44Total


532



792



559



192



583



199



724



1,375



758


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2. Cost Analysis|continued Segmental analysis of 2013 impairment charges  Portfolioreviewincluded inAnnual







Included in


share of equityimpairment


Portfolio




operating


accountedprocess


review




profit


entities




Totalm


m




m


m




mEurope Heavyside


58



444





502



101





603Europe Lightside


-



13





13



-





13Europe Distribution


4



-





4



4





8Europe


62



457





519



105





624Americas Materials


-



60





60



-





60Americas Products


10



61





71



-





71Americas Distribution


-



-





-



-





-Americas


10



121





131



-





131Total Group


72



578





650



105





755 Narrative disclosures regarding the 2013 impairments are included in section (b) of note 14.   3. Operating Profit Disclosures  2014


2013


2012m


m


mOperating lease rentals- hire of plant and machinery


149



108



99- land and buildings


216



220



187- other operating leases


48



47



69Total


413



375



355Auditors
remunerationFees for professional services provided by the Groups independent auditor in respect of each of the following categories were:Audit fees (i)


14



14



14Audit-related fees (ii)


1



2



2Tax fees


1



1



1All other fees


-



-



-Total


16



17



17  (i)
Audit of the Group accounts includes Sarbanes-Oxley attestation and parent and subsidiary statutory audit fees, but excludes 2 million (2013: 1 million; 2012: 1 million) paid to auditors other than EY.  (ii)
Other assurance services includes attestation and due diligence services that are closely related to the performance of the audit.






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4. Business and Non-current Asset Disposals  (a) Profit on disposal










Disposal of otherBusiness disposals


non-current assets


Total2014(i)


2013


2012 (ii)


2014


2013


2012


2014


2013


2012m


m


m


m


m


m


m


m


mAssets/(liabilities) disposed of at net carrying amount:- non-current assets (notes 13,14,15)


117



43



432



83



66



90



200



109



522- cash and cash equivalents


-



-



3



-



-



-



-



-



3- working capital and provisions (note 19)


11



6



21



-



-



-



11



6



21- asset held for sale (iii) (note 15)


-



139



-



-



-







-



139



-- interest-bearing loans and borrowings


-



(17
)


(2
)


-



-



-



-



(17
)


(2
)- deferred tax (note 26)


-



-



1



-



-



-



-



-



1- retirement benefit obligations (note 27)


-



-



(4
)


-



-



-



-



-



(4
)Net assets disposed


128



171



451



83



66



90



211



237



541Reclassification of currency translation effects on disposal


57



3



14



-



-



-



57



3



14Total


185



174



465



83



66



90



268



240



555Proceeds from disposals (net of disposal costs)


224



26



652



121



96



133



345



122



785Asset exchange (iii) (note 30)


-



144



-



-



-



-



-



144



-Profit/(loss) on disposals


39



(4
)


187



38



30



43



77



26



230Net cash inflow arising on disposalCash proceeds


224



26



652



121



96



133



345



122



785Less: cash and cash equivalents disposed


-



-



(3
)


-



-



-



-



-



(3
)Total


224



26



649



121



96



133



345



122



782  (i)
This relates principally to the disposal of our 50% equity stake in our Turkish joint venture, Denizli Çimento (which was part of the Europe
Heavyside segment). (ii)
This relates principally to the disposal of our 49% investment in our Portugese joint venture, Secil (which was part of the Europe Heavyside segment). (iii)
On 25 February 2013, the Group transferred its 26% stake in Corporacion Uniland to Cementos Portland Valderrivas in exchange for a 99% stake in
Cementos Lemona, an integrated cement, readymixed concrete and aggregates business. (b) Assets held for sale In November 2013, a Group-wide portfolio review was initiated which identified a number of business units which did not meet our future returns objectives
and which were in line for divestment. This review was completed during 2014; a multi-year divestment programme commenced during the year, with proceeds of 0.35 billion realised on business and
non-current asset disposals in 2014. On 15 December 2014, the Group announced that it had reached agreement to dispose of its clay and concrete
businesses in the United Kingdom (Europe Heavyside) and its clay business in the United States (Americas Products) for an Enterprise Value (EV) of Stg £414 million. As part of the transaction, the purchaser will assume certain debt and pension
liabilities and accordingly, the net cash consideration payable to CRH is expected to be approximately Stg £295 million. The transaction closed in the first quarter of 2015. The assets associated with this transaction, together with a number
of smaller business units, met the held for sale criteria set out in IFRS 5 Non-current Assets Held for Sale and Discontinued Operations as at 31 December 2014 and the relevant assets and liabilities have accordingly been
reclassified as assets or liabilities held for sale as appropriate as set out in the table below. The businesses either divested in 2014 or held for
sale at year-end 2014 are not considered to be either separate major lines of business or geographical areas of operation and therefore do not constitute discontinued operations as defined in IFRS 5.  31 December2014mAssetsProperty, plant and equipment (note 13)


262Intangible assets (note 14)


17Financial assets (note 15)


34Deferred income tax assets (note 26)


4Inventories (note 19)


102Trade and other receivables (note 19)


79Cash and cash equivalents (note 22)


33Assets held for sale


531LiabilitiesTrade and other payables (note 19)


98Current income tax liabilities


4Provisions for liabilities (note 19)


7Deferred income tax liabilities (note 26)


23Retirement benefit obligations (note 27)


81Liabilities associated with assets classified as held for sale


213Net assets held for sale


318 Total losses recognised in other comprehensive income and accumulated in equity relating to assets held for sale amounted
to 164 million at 31 December 2014.


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5. Employment The average number of employees is as follows:  Year ended 31 December2014



2013



2012Europe Heavyside


19,096



19,996



19,879Europe Lightside


5,003



4,849



4,664Europe Distribution


11,607



11,263



11,086Europe


35,706



36,108



35,629Americas Materials


18,457



18,216



18,106Americas Products


17,707



17,276



15,546Americas Distribution


3,836



3,709



3,532Americas


40,000



39,201



37,184Total Group


75,706



75,309



72,813Employment costs charged in the Consolidated Income Statement are analysed as follows:2014


2013


2012m


m


mWages and salaries


2,987



2,915



2,876Social welfare costs


368



360



359Other employment-related costs


448



464



432Share-based payment expense (note 7)


16



15



14Total retirement benefits expense (note 27)


215



201



181Total


4,034



3,955



3,862Total charge analysed between:Cost of sales


1,985



1,974



1,946Operating costs


2,035



1,959



1,891Finance costs (net) - applicable to retirement benefit obligations (note 8)


14



22



25Total


4,034



3,955



3,862   6. Directors Emoluments and Interests Directors emoluments (which are included in administrative expenses in note 2) and interests are presented in the Directors Remuneration
Report on pages 108 to 131 of this Annual Report.   7. Share-based Payment Expense  2014


2013


2012m


m


mShare option expense (i)


1



1



-Performance Share Plans and Restricted Share Plan expense (ii)


15



14



14Total


16



15



14  (i)
Relates to options granted under the 2000 share option scheme, the 2010 share option scheme and the savings-related share option schemes.  (ii)
Relates to awards granted under the 2006 and 2014 Performance Share Plans and the 2013 Restricted Share Plan. The share-based payment expense is reflected in operating costs in the Consolidated Income Statement. In May 2014, shareholders approved the adoption of a new Performance Share Plan (the 2014 Performance Share Plan), which replaced the 2006
Performance Share Plan (approved by shareholders in May 2006), the 2010 Share Option Scheme (approved by shareholders in May 2010) and the 2013 Restricted Share Plan (together, the Existing Plans). Following the introduction of the 2014
Performance Share Plan, no further awards will be made under the Existing Plans. Consequently, the last awards under the Existing Plans were made in 2013. The general terms and conditions applicable to the various plans are set out in the
Directors Remuneration Report on pages 112 to 116. The Group also operates savings-related share option schemes. Due to the immateriality of
the savings-related schemes expense and the level of savings-related share options outstanding, detailed financial disclosures have not been provided in relation to these schemes.






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7. Share-based Payment Expense|continued Share option schemes Details of options granted under the share option
schemes (excluding savings-related share option schemes)  Weighted average


Number of


Weighted average


Number of


Weighted average


Number ofexercise price


options


exercise price


options


exercise price


options2014





2013





2012Outstanding at beginning of year


18.75



21,798,887



18.84



23,295,955



19.13



23,591,756Granted


-



-



16.19



3,853,400



15.19



3,889,100Exercised (a)


16.58



(919,205
)


13.21



(1,245,029
)


11.98



(1,010,780
)Lapsed


16.77



(5,398,491
)


18.53



(4,105,439
)


18.68



(3,174,121
)Outstanding at end of year (b)


19.58



15,481,191



18.75



21,798,887



18.84



23,295,955Exercisable at end of year


18.79



1,248,698



17.94



2,114,772



16.24



3,364,448  (a)
The weighted average share price at the date of exercise of these options was 20.47 (2013: 17.28; 2012: 14.95).  (b)
The level of vesting of options outstanding at the end of the year will be determined by reference to certain performance targets (outlined on page 116 of
this Annual Report). If the performance criteria have been met, these options, or portion thereof as appropriate, may be exercised after the expiration of three years from their date of grant. All options granted have a life of ten years.  2014


2013


2012Weighted average remaining contractual life for the share options outstanding at 31 December (years)


4.89



5.54



5.69Euro-denominated options outstanding at the end of the year (number)


15,389,922



21,683,559



23,182,257Range of exercise prices ()


15.19-29.86



15.07-29.86



11.86-29.86Sterling-denominated options outstanding at the end of the year (number)


91,269



115,328



113,698Range of exercise prices (Stg£)


12.80-20.23



10.04-20.23



8.17-20.23The CRH share price at 31 December 2014 was 19.90 (2013:
18.30; 2012: 15.30). The following analysis shows the number of outstanding share options with exercise prices lower/higher than the
year-end share price:Number of options with exercise prices lower than year-end price:Exercisable


1,248,698



506,581



1,677,365Not exercisable


8,789,200



13,788,399



5,382,29610,037,898



14,294,980



7,059,661Number of options with exercise prices higher than year-end price:Exercisable


-



1,608,191



1,687,083Not exercisable


5,443,293



5,895,716



14,549,2115,443,293



7,503,907



16,236,294Total options outstanding


15,481,191



21,798,887



23,295,955 The Group measures the fair value of options granted using the trinomial model (a lattice option-pricing model in
accordance with IFRS 2 Share-based Payment). Due to the immateriality of the share option expense in the current and prior years, detailed fair value disclosures have not been included. 2014 Performance Share Plan The general terms and conditions
of the 2014 Performance Share Plan were set out in a circular issued to shareholders prior to the Annual General Meeting held in 2014, a copy of which is available on www.crh.com. The structure of the 2014 Performance Share Plan is set out in the
Directors Remuneration Report on page 112. An expense of 5 million was recognised in 2014. Details of awards granted under the 2014 Performance Share Plan  Period to


Number of SharesShare price


earliestat date


release


Initial


Netof award


date


award


outstandingGranted in 2014


20.49



3 years



2,283,960



2,270,340 75% of vesting is subject to Total Shareholder Return (TSR) performance against sector peers, while the remaining 25% of
vesting is subject to a cumulative cash flow target. A small number of awards are subject only to a three year service period (i.e. no performance conditions).


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7. Share-based Payment
Expense|continued The fair value assigned to the portion of awards which are subject to TSR performance was 10.88. The fair value of these awards was calculated using a TSR pricing model taking account of peer group TSR, volatilities and correlations together with the following assumptions:  2014Risk-free interest rate (%)


0.13Expected volatility (%)


21.9 The expected volatility was determined using a historical sample of 37 month-end CRH share prices. The fair value of (i) the portion of awards subject to cash flow performance and (ii) the awards with no performance conditions (which are
subject to a three year service period) was 20.49. The fair value was calculated using the closing CRH share price at the date the award was granted. Awards vest only if all performance and
service conditions are met. No expense is recognised for awards that do not ultimately vest. At the balance sheet date the estimate of the level of vesting is reviewed and any necessary adjustment to the share-based payment expense is recognised in
the Consolidated Income Statement. 2006 Performance Share Plan The expense of 8 million (2013: 13
million; 2012: 14 million) reported in the Consolidated Income Statement has been arrived at through applying a Monte Carlo simulation technique to model the combination of market-based and
non-market-based performance conditions in the Plan. Details of awards granted under the 2006 Performance Share Plan  Period to


Number of SharesShare price


earliestat date


release


Initial


Net


Fairof award


date


award


outstanding


valueGranted in 2011


16.52



3 years



1,684,250



-



9.72Granted in 2012


15.63



3 years



2,079,000



1,849,000



7.77Granted in 2013


16.69



3 years



1,195,500



1,040,500



8.54 In February 2014, 742,604 of the shares awarded under the Performance Share Plan in 2011 vested and accordingly were
released to the participants of the scheme. The remaining awards granted in 2011 lapsed. The fair value of the shares awarded was determined using a
Monte Carlo simulation technique taking account of peer group TSR, volatilities and correlations, together with the following assumptions:  2013


2012Risk-free interest rate (%)


0.10



0.33Expected volatility (%)


31.3



35.4 2013 Restricted Share Plan Due
to the immateriality of the Restricted Share Plan expense and the level of awards outstanding in this plan at 31 December 2014 and 31 December 2013, detailed financial disclosures have not been provided in relation to this share-based
payment arrangement.






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8. Finance Costs and Finance Income  2014


2013


2012m


m


mFinance costsInterest payable on borrowings


308



323



327Net income on interest rate and currency swaps


(42
)


(55
)


(47
)Mark-to-market of derivatives and related fixed rate debt:- interest rate swaps (i)


(15
)


68



22- currency swaps and forward contracts


-



1



3- fixed rate debt (i)


8



(79
)


(34
)Net (gain)/loss on interest rate swaps not designated as hedges


(5
)


4



-Net finance cost on gross debt including related derivatives


254



262



271Finance incomeInterest receivable on loans to joint ventures and associates


(3
)


(3
)


(2
)Interest receivable on cash and cash equivalents and other


(5
)


(10
)


(13
)Finance income


(8
)


(13
)


(15
)Finance costs less income


246



249



256Other financial expenseUnwinding of discount element of provisions for liabilities (note 25)


16



15



15Unwinding of discount applicable to deferred and contingent acquisition consideration (note 18)


12



11



9Pension-related finance cost (net) (note 27)


14



22



25Total


42



48



49 (i) The Group uses interest rate swaps to convert fixed rate debt to floating rate. Fixed rate debt, which has been
converted to floating rate through the use of interest rate swaps, is stated in the Consolidated Balance Sheet at adjusted value to reflect movements in underlying fixed rates. The movement on this adjustment, together with the offsetting movement
in the fair value of the related interest rate swaps, is included in finance costs in each reporting period.   9. Share of Equity Accounted
Investments Profit/(Loss) The Groups share of joint ventures and associates result after tax is equity accounted
and is presented as a single-line item in the Consolidated Income Statement; it is analysed as follows between the principal Consolidated Income Statement captions:  Joint Ventures


Associates


Total2014
m


2013
m


2012
m


2014
m


2013
m


2012
m


2014
m


2013
m


2012
mGroup share of:Revenue


488



469



575



953



961



978



1,441



1,430



1,553EBITDA (as defined)*


62



60



77



106



109



118



168



169



195Depreciation and amortisation


(27
)


(27
)


(37
)


(45
)


(39
)


(50
)


(72
)


(66
)


(87
)Impairment (i)


-



(54
)


-



-



(51
)


(146
)


-



(105
)


(146
)Operating profit/(loss)


35



(21
)


40



61



19



(78
)


96



(2
)


(38
)Finance costs (net)


(6
)


(2
)


(2
)


(21
)


(22
)


(26
)


(27
)


(24
)


(28
)Profit/(loss) before tax


29



(23
)


38



40



(3
)


(104
)


69



(26
)


(66
)Income tax expense


(3
)


(5
)


(10
)


(11
)


(13
)


(8
)


(14
)


(18
)


(18
)Profit/(loss) after tax


26



(28
)


28



29



(16
)


(112
)


55



(44
)


(84
) An analysis of the result after tax by operating segment is presented in note 1. The aggregated balance sheet data
(analysed between current and non-current assets and liabilities) in respect of the Groups investment in joint ventures and associates is presented in note 15. (i) See section (b) of note 14 for details of the 2013 impairment charge.  *
EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges and profit on disposals.


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10. Income Tax Expense  Recognised within the Consolidated Income Statement

2014
m


2013
m


2012
m(a) Current taxRepublic of Ireland


-



(1
)


(4
)Overseas


141



77



103Total current tax expense


141



76



99(b) Deferred taxOrigination and reversal of temporary differences:Retirement benefit obligations


7



16



20Share-based payment expense


-



(1
)


1Derivative financial instruments


6



4



(9
)Other items


23



(15
)


(5
)Total deferred tax expense


36



4



7Income tax expense reported in the Consolidated Income Statement


177



80



106Recognised within equity(a) Within the Consolidated Statement of Comprehensive Income:Deferred tax - retirement benefit obligations


69



(43
)


23Income tax recognised directly within equity


69



(43
)


23Reconciliation of applicable tax rate to effective tax rateProfit/(loss) before tax (m)


761



(215
)


646Tax charge expressed as a percentage of profit/(loss) before tax (effective tax rate):- current tax expense only


18.5%



(35.3%
)


15.3%- total income tax expense (current and deferred)


23.2%



(37.2%
)


16.4%The following table reconciles the applicable Republic of Ireland statutory tax rate to the effective tax rate (current and deferred) of the
Group:% of profit/(loss) before taxIrish corporation tax rate


12.5



12.5



12.5Higher tax rates on overseas earnings


9.6



17.8



3.1Other items (primarily comprising items not chargeable to tax/expenses not deductible for tax):- arising from 2013 impairment


-



(70.2
)


-- other items


1.1



2.7



0.8Total effective tax rate


23.2



(37.2
)


16.4 Other disclosures Changes in tax rates The total tax charge in future periods will be affected by any changes to the tax rates in force in the countries in which the Group operates. Excess of capital allowances over depreciation The current tax
charge will also be impacted by changes in the excess of tax depreciation (capital allowances) over accounting depreciation. Based on current capital investment plans, the Group expects to continue to be in a position to claim capital allowances in
excess of depreciation in future years. Investments in subsidiaries Given that participation exemptions and tax credits would be available in the context of the Groups investments in subsidiaries in the majority of
the jurisdictions in which the Group operates, the aggregate amount of temporary differences in respect of which deferred tax liabilities have not been recognised would be immaterial. Proposed dividends There are no income tax consequences for
the Company in respect of dividends proposed prior to issuance of the Consolidated Financial Statements and for which a liability has not been recognised.






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11. Dividends The dividends paid and proposed in respect of each class of share capital are as follows:  2014
m


2013
m


2012
mDividends to shareholdersPreference5% Cumulative Preference Shares 3,175 (2013: 3,175; 2012:
3,175)


-



-



-7% A Cumulative Preference Shares 77,521 (2013: 77,521; 2012:
77,521)


-



-



-EquityFinal - paid 44.00c per Ordinary Share (2013: 44.00c; 2012: 44.00c)


323



320



317Interim - paid 18.50c per Ordinary Share (2013: 18.50c; 2012: 18.50c)


137



135



133Total


460



455



450Dividends proposed (memorandum disclosure)EquityFinal 2014 - proposed 44.00c per Ordinary Share (2013: 44.00c; 2012: 44.00c)


359



323



320Reconciliation to Consolidated Statement of Cash FlowsDividends to shareholders


460



455



450Less: issue of scrip shares in lieu of cash dividends (note 28)


(107
)


(88
)


(88
)Dividends paid to equity holders of the Company


353



367



362Dividends paid by subsidiaries to non-controlling interests


4



1



4Total dividends paid


357



368



366   12. Earnings per Ordinary Share The computation of basic and diluted earnings per Ordinary Share is set out below:  2014
m


2013
m


2012
mNumerator computationsGroup profit/(loss) for the financial year


584



(295
)


540Profit attributable to non-controlling interests


(2
)


(1
)


(2
)Profit/(loss) attributable to equity holders of the Company


582



(296
)


538Preference dividends


-



-



-Profit/(loss) attributable to ordinary equity holders of the Company - numerator for basic/diluted earnings per Ordinary Share


582



(296
)


538Denominator computationsDenominator for basic earnings per Ordinary ShareWeighted average number of Ordinary Shares (millions) outstanding for the year (i)


737.6



729.2



721.9Effect of dilutive potential Ordinary Shares (employee share options) (millions) (i) and (ii)


0.7



-



0.3Denominator for diluted earnings per Ordinary Share


738.3



729.2



722.2Basic earnings/(loss) per Ordinary Share


78.9c



(40.6c
)


74.6cDiluted earnings/(loss) per Ordinary Share


78.8c



(40.6c
)


74.5c  (i)
The weighted average number of Ordinary Shares included in the computation of basic and diluted earnings per Ordinary Share has been adjusted to exclude
shares held by the Employee Benefit Trust and Ordinary Shares repurchased and held by the Company (CRH plc) as Treasury Shares given that these shares do not rank for dividend. The number of Ordinary Shares so held at the balance sheet date is
detailed in note 28.  (ii)
Contingently issuable Ordinary Shares (totalling 19,062,236 at 31 December 2014, 24,282,615 at 31 December 2013 and 24,856,007 at 31 December
2012) are excluded from the computation of diluted earnings per Ordinary Share where the conditions governing exercisability have not been satisfied as at the end of the reporting period or they are antidilutive for the periods presented. Subsequent to year end the Group completed a share placing. Further details are set out in note 33.


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13. Property, Plant and
Equipment  Land and
buildings(i) m


Plant and
machinery m


Assets in
course of construction
m


Total
mAt 31 December 2014Cost/deemed cost


6,068



8,940



220



15,228Accumulated depreciation (and impairment charges)


(1,892
)


(5,914
)


-



(7,806
)Net carrying amount


4,176



3,026



220



7,422At 1 January 2014, net carrying amount


4,096



3,214



229



7,539Translation adjustment


329



64



1



394Reclassifications


66



34



(100
)


-Additions at cost


45



264



126



435Arising on acquisition (note 30)


20



71



-



91Disposals at net carrying amount


(68
)


(27
)


-



(95
)Reclassified as held for sale


(173
)


(88
)


(1
)


(262
)Depreciation charge for year


(132
)


(499
)


-



(631
)Impairment charge for year (ii)


(7
)


(7
)


(35
)


(49
)At 31 December 2014, net carrying amount


4,176



3,026



220



7,422The equivalent disclosure for the prior year is as follows:At 31 December 2013Cost/deemed cost


5,912



8,847



229



14,988Accumulated depreciation (and impairment charges)


(1,816
)


(5,633
)


-



(7,449
)Net carrying amount


4,096



3,214



229



7,539At 1 January 2013, net carrying amount


4,313



3,371



287



7,971Translation adjustment


(129
)


(114
)


(8
)


(251
)Reclassifications


7



144



(151
)


-Additions at cost


46



350



101



497Arising on acquisition (note 30)


132



210



-



342Disposals at net carrying amount


(30
)


(44
)


-



(74
)Depreciation charge for year


(132
)


(539
)


-



(671
)Impairment charge for year (iii)


(111
)


(164
)


-



(275
)At 31 December 2013, net carrying amount


4,096



3,214



229



7,539At 1 January 2013Cost/deemed cost


5,838



8,694



287



14,819Accumulated depreciation (and impairment charges)


(1,525
)


(5,323
)


-



(6,848
)Net carrying amount


4,313



3,371



287



7,971  (i)
The carrying value of mineral-bearing land included in the land and buildings category above amounted to
1,997 million at the balance sheet date (2013: 1,824 million).  (ii)
The impairment charge of 49 million in 2014, of which
47 million has been charged against cost of sales (see note 2), relates to the write down of property, plant and equipment in Europe Heavyside
(35 million) and Americas Products (14 million).  (iii)
The property, plant and equipment impairment charge of 275 million in 2013, of which 271 million was charged against cost of sales (see note 2), arose primarily from a Group-wide portfolio review initiated in November 2013; further details of this, and of the related impairment
of intangible assets in 2013, are set out in section (b) of note 14. Future purchase commitments for property, plant and equipment  2014
m


2013
mContracted for but not provided in the financial statements


211



155Authorised by the Directors but not contracted for


70



91






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14. Intangible Assets  Other intangible assetsGoodwill
m


Marketing-
related m


Customer-
related (i) m


Contract-
based m


Total
mAt 31 December 2014Cost/deemed cost


4,362



52



448



37



4,899Accumulated amortisation (and impairment charges)


(344
)


(40
)


(322
)


(20
)


(726
)Net carrying amount


4,018



12



126



17



4,173At 1 January 2014, net carrying amount


3,734



12



151



14



3,911Translation adjustment


279



3



6



1



289Arising on acquisition (note 30)


31



2



10



4



47Disposals


(10
)


(1
)


(2
)


-



(13
)Reclassified as held for sale


(16
)


-



(1
)


-



(17
)Amortisation charge for year


-



(4
)


(38
)


(2
)


(44
)At 31 December 2014, net carrying amount


4,018



12



126



17



4,173The equivalent disclosure for the prior year is as follows:At 31 December 2013Cost/deemed cost


4,158



48



420



31



4,657Accumulated amortisation (and impairment charges)


(424
)


(36
)


(269
)


(17
)


(746
)Net carrying amount


3,734



12



151



14



3,911At 1 January 2013, net carrying amount


4,067



17



177



6



4,267Translation adjustment


(117
)


(1
)


(2
)


(1
)


(121
)Arising on acquisition (note 30)


169



1



20



18



208Disposals


(12
)


-



-



(2
)


(14
)Amortisation charge for year


-



(5
)


(42
)


(7
)


(54
)Impairment charge for year


(373
)


-



(2
)


-



(375
)At 31 December 2013, net carrying amount


3,734



12



151



14



3,911At 1 January 2013Cost/deemed cost


4,122



51



413



17



4,603Accumulated amortisation (and impairment charges)


(55
)


(34
)


(236
)


(11
)


(336
)Net carrying amount


4,067



17



177



6



4,267  (i)
The customer-related intangible assets relate predominantly to non-contractual customer relationships. (a) Annual goodwill testing The net book value of goodwill
capitalised under previous GAAP (Irish GAAP) as at the transition date to IFRS (1 January 2004) has been treated as deemed cost. Goodwill arising on acquisition since that date is capitalised at cost. Cash-generating units Goodwill acquired through business
combination activity has been allocated to cash-generating units (CGUs) that are expected to benefit from synergies in that combination. The cash-generating units represent the lowest level within the Group at which the associated goodwill is
monitored for internal management purposes, and are not larger than the operating segments determined in accordance with IFRS 8 Operating Segments. A total of 20 (2013: 19) cash-generating units have been identified and these are analysed
between the six business segments in the Group below. The increase in the number of CGUs in 2014 relates to organisational changes in our Europe segments. As a result, a number of entities have been added to the Benelux CGU in Europe Heavyside, two
new CGUs have been added (Germany - Europe Heavyside and Europe Lightside) and the Europe Products CGU has been removed. All businesses within the various cash-generating units exhibit similar and/or consistent profit margin and asset intensity
characteristics. Assets, liabilities, deferred tax and goodwill have been assigned to the CGUs on a reasonable and consistent basis. Significant
under-performance in any of CRHs major cash-generating units may give rise to a material write-down of goodwill which would have a substantial impact on the Groups income and equity.  Cash-generating units





Goodwill (m)2014


2013





2014


2013Europe Heavyside*


8



7







650



697Europe Lightside*


1



1







346



313Europe Distribution


1



1







649



641Europe


10



9







1,645



1,651Americas Materials


7



7







1,313



1,151Americas Products


2



2







703



618Americas Distribution


1



1







357



314Americas


10



10







2,373



2,083Total Group


20



19







4,018



3,734  *
Included in the goodwill numbers of Europe Heavyside and Europe Lightside at 31 December 2014 are amounts of 54 million and
9 million respectively (2013: 53 million and 9 million respectively) relating to businesses identified for divestment as part of the portfolio review, which have been tested separately (see section (b) below).


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14. Intangible Assets|continued Impairment testing methodology and results Goodwill is subject to impairment testing on an annual basis. The recoverable amount of each of the 20 CGUs is determined based on a value-in-use
computation, using Level 3 inputs in accordance with the fair value hierarchy. The cash flow forecasts are primarily based on a five-year strategic plan document formally approved by senior management and the Board of Directors and specifically
exclude the impact of future development activity. These cash flows are projected forward for an additional five years to determine the basis for an annuity-based terminal value, calculated on the same basis as the Groups acquisition modelling
methodology. As in prior years, the terminal value is based on a 20-year annuity. The projected cash flows assume zero growth in real cash flows beyond the initial evaluation period. The value-in-use represents the present value of the future cash
flows, including the terminal value, discounted at a rate appropriate to each CGU. The real pre-tax discount rates used range from 7.5% to 12.2% (2013: 7.8% to 11.7%); these rates are in line with the Groups estimated weighted average cost of
capital, arrived at using the Capital Asset Pricing Model. The 2014 annual goodwill impairment testing process has resulted in no intangible asset
impairments. The 2013 annual impairment testing process resulted in an impairment of 58 million being recorded in respect of our Benelux CGU in Europe Heavyside due to a difficult trading
environment in 2013 and a slower recovery than previously anticipated. The assumptions underlying the 2013 value-in-use model projections resulted in a present value (using a real pre-tax discount rate of 9.4%) of 241 million and a related goodwill impairment being recorded of 58 million. Key sources of estimation uncertainty The cash flows have been
arrived at taking account of the Groups strong financial position, its established history of earnings and cash flow generation and the nature of the building materials industry, where product obsolescence is very low. However, expected future
cash flows are inherently uncertain and are therefore liable to material change over time. The key assumptions employed in arriving at the estimates of future cash flows factored into impairment testing are subjective and include projected EBITDA
(as defined)* margins, net cash flows, discount rates used and the duration of the discounted cash flow model. Significant goodwill amounts The goodwill allocated to the Europe Distribution and the Oldcastle Building Products (Americas Products segment) CGUs accounts for between 10% and 20% of
the total carrying amount of 4,018 million. The goodwill allocated to each of the remaining CGUs is less than 10% of the total carrying value in all other cases. The additional disclosures
required for the two CGUs with significant goodwill are as follows:  Europe Distribution





OldcastleBuilding Products2014



2013







2014



2013Goodwill allocated to the cash-generating unit at balance sheet date


649m



641m







699m



615mDiscount rate applied to the cash flow projections (real pre-tax)


9.4%



9.4%







11.9%



11.7%Average EBITDA (as defined)* margin over the initial 5-year period


5.9%



6.4%







11.0%



10.6%Value-in-use (present value of future cash flows)


2,015m



2,201m







2,588m



2,380mExcess of value-in-use over carrying amount


336m



431m







509m



579m The key assumptions and methodology used in respect of these two CGUs are consistent with those described above. The
values applied to each of the key estimates and assumptions are specific to the individual CGUs and were derived from a combination of internal and external factors based on historical experience and took into account the cash flows specifically
associated with these businesses. The cash flows and 20-year annuity-based terminal value were projected in line with the methodology disclosed above. Europe Distribution and Oldcastle Building Products are not included in the CGUs referred to in the Sensitivity analysis section below. Given
the magnitude of the excess of value-in-use over carrying amount, and our belief that the key assumptions are reasonable, management believe that it is not reasonably possible that there would be a change in the key assumptions such that the
carrying amount would exceed the value-in-use. Consequently no further disclosures relating to sensitivity of the value-in-use computations for the Europe Distribution or Oldcastle Building Products CGUs are considered to be warranted. Sensitivity analysis Sensitivity analysis has been performed
and results in additional disclosures in respect of 2 of the 20 CGUs. The key assumptions, methodology used and values applied to each of the key assumptions for the two cash-generating units are in line with those outlined above. The two CGUs had
goodwill of 178 million at the date of testing. The table below identifies the amounts by which each of the following assumptions may either decline or increase to arrive at a zero excess
of the present value of future cash flows over the book value of net assets in the two CGUs selected for sensitivity analysis disclosures:  2 CGUsReduction in EBITDA (as defined)* margin


1.3 to 2.0 percentage pointsReduction in profit before tax


8.6% to 15.9%Reduction in net cash flow


7.9% to 13.6%Increase in pre-tax discount rate


0.7 to 1.4 percentage points The average EBITDA (as defined)* margin for the aggregate of these two CGUs over the initial 5-year period was 9.2%. The
value-in-use (being the present value of the future net cash flows) was 619 million and the carrying amount was 542 million,
resulting in an excess of value-in-use over carrying amount of 77 million. While the Ukraine
CGU is not considered to require additional sensitivity-related disclosures based on analysis performed, the countrys ongoing political situation remains uncertain. CRHs activities in Ukraine are mainly located in the west of the country
and are therefore not directly affected by the continuing conflict; however, the economic outlook for the country as a whole remains unclear. The net asset value of the Ukrainian CGU amounts to
267 million at year-end 2014.  *
EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share
of equity accounted investments result after tax.






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##### Table of Contents

14. Intangible Assets|continued (b) Portfolio review update In November 2013, a Group-wide
portfolio review was initiated to identify and focus on those businesses within our portfolio which offer the most attractive future returns, and to prioritise capital allocation to ensure profitable growth across our network of businesses. This
review was completed during the year and a multi-year divestment programme has commenced with proceeds of 0.35 billion realised on business and non-current asset disposals in 2014 (see note 4). The decision to divest of these business units resulted in the need to assess them for impairment, either individually or combined where they form a
new group for disposal purposes. Excluding business units divested during 2014, the remainder were assessed for impairment or reversal of previous impairments and also assessed from the perspective of the held for sale criteria set out in IFRS 5
Non-current Assets Held for Sale and Discontinued Operations (see note 4). A valuation was prepared based on the estimated fair value less
costs of disposal (FVLCD) for each business unit. The valuations were then compared to the carrying value of each business and where that valuation fell below the carrying value an impairment charge was taken. No goodwill impairments or reversal of previous impairments were recorded during the year. In 2013, the total impairments (including financial asset impairments) arising from the portfolio review amounted to 683 million, of which 261 million related to property, plant and equipment (see note 13) and
317 million related to intangible assets. The largest impairments in 2013 arose in two business units within Europe Heavyside. Both businesses serve the residential new-build sector in
mature markets. Financial asset impairments of 105 million were recorded in 2013 relating to two Europe Heavyside equity accounted investments. The additional disclosures required are as
follows:  Business 1




Business 2




Financial Assets2013




2013




2013Amount of impairment loss recognised in 2013


99m





75m





105mDescription of valuation technique


Income-based





Income-based





Income-basedLevel of fair value hierarchy


Level 3





Level 3





Level 3Recoverable amount (FVLCD)


182m





34m





172mDiscount rate applicable to cash flow projections (real pre-tax)


8.9%





9.2%





9.2% - 9.8%Average EBITDA (as defined)* margin over initial 5-year period


13.5%





13.7%





20.1% - 22.5%  *
EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Groups share
of equity accounted investments result after tax.


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15. Financial Assets  Investments accounted forusing the equity method(i.e. joint ventures and associates)Share of net
assets m


Loans
m


Total
m


Asset held
for sale m


Other(i)
mAt 1 January 2014


1,211



129



1,340



-



23Translation adjustment


73



14



87



-



-Investments and advances


-



3



3



-



-Disposals and repayments


(82
)


(10
)


(92
)


-



-Reclassified as held for sale


(34
)


-



(34
)


-



-Retained profit


25



-



25



-



-At 31 December 2014


1,193



136



1,329



-



23The equivalent disclosure for the prior year is as follows:At 1 January 2013


1,291



131



1,422



143



34Translation adjustment


(72
)


(5
)


(77
)


(1
)


(1
)Investments and advances


64



10



74



-



4Disposals and repayments


-



(7
)


(7
)


(139
)


(14
)Arising on acquisition (note 30)


2



-



2



-



-Retained loss


(74
)


-



(74
)


(3
)


-At 31 December 2013


1,211



129



1,340



-



23 (i) Other financial assets primarily comprise trade investments carried at historical cost. Summarised financial information for the Groups investment in joint ventures and associates which are accounted for using the equity method is as
follows:  Joint Ventures


Associates


Total2014
m


2013
m


2014
m


2013
m


2014
m


2013
mNon-current assets


548



600



955



862



1,503



1,462Current assets


121



176



538



557



659



733Non-current liabilities


(161
)


(174
)


(209
)


(230
)


(370
)


(404
)Current liabilities


(73
)


(106
)


(526
)


(474
)


(599
)


(580
)Net assets


435



496



758



715



1,193



1,211 A listing of the principal equity accounted investments is contained in Exhibit 8 to the Annual Report. The Group holds a 21.13% stake (2013: 21.13%) in Samse S.A., a publicly-listed distributor in France which is accounted for as an associate investment
above. The fair value of this investment at the balance sheet date, calculated based on the number of shares held multiplied by the closing share price at 31 December 2014 (Level 1 input in the fair value hierarchy), was 75 million (2013: 58 million).






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##### Table of Contents

16. Inventories  2014
m


2013
mRaw materials


612



606Work-in-progress (i)


80



86Finished goods


1,568



1,562Total inventories at the lower of cost and net realisable value


2,260



2,254  (i)
Work-in-progress includes 8 million (2013:
2 million) in respect of the cumulative costs incurred, net of amounts transferred to cost of sales under percentage-of-completion accounting, for construction contracts in progress at the
balance sheet date. An analysis of the Groups cost of sales expense is provided in note 2 to the financial statements. Write-downs of inventories recognised as an expense within cost of sales amounted to
29 million (2013: 19 million; 2012: 12 million).   17. Trade and Other Receivables  2014
m


2013
mCurrentTrade receivables


1,810



1,725Amounts receivable in respect of construction contracts (i)


476



422Total trade receivables, gross


2,286



2,147Provision for impairment


(106
)


(118
)Total trade receivables, net


2,180



2,029Amounts receivable from equity accounted investments


6



4Prepayments and other receivables


458



483Total


2,644



2,516Non-currentOther receivables


85



93 The carrying amounts of current and non-current trade and other receivables approximate their fair value largely due to
the short-term maturities and nature of these instruments.  (i)
Includes unbilled revenue and retentions held by customers in respect of construction contracts at the balance sheet date amounting to 119 million and 82 million respectively (2013: 121 million and 63 million respectively). Valuation and qualifying accounts (provision for impairment) The movements in the provision for impairment of receivables during the financial year were as follows:  2014
m


2013
m


2012
mAt 1 January


118



123



136Translation adjustment


4



(2
)


-Provided during year


28



36



40Written-off during year


(36
)


(33
)


(50
)Recovered during year


(6
)


(6
)


(3
)Reclassified as held for sale


(2
)


-



-At 31 December


106



118



123 Information in relation to the Groups credit risk management is provided in note 21 to the financial statements. Aged analysis The aged analysis of trade receivables and
amounts receivable in respect of construction contracts at the balance sheet date was as follows:  2014
m


2013
mNeither past due nor impaired


1,638



1,554Past due but not impaired:- less than 60 days


373



290- 60 days or greater but less than 120 days


117



126- 120 days or greater


45



53Past due and impaired (partial or full provision)


113



124Total


2,286



2,147 Trade receivables and amounts receivable in respect of construction contracts are in general receivable within 90 days of
the balance sheet date.


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18. Trade and Other
Payables  2014m


2013mCurrentTrade payables


1,506



1,495Construction contract-related payables (i)


129



103Deferred and contingent acquisition consideration (ii)


59



24Accruals and other payables


1,148



1,093Amounts payable to equity accounted investments


52



39Total


2,894



2,754Non-currentOther payables


109



105Deferred and contingent acquisition consideration (ii)


148



184Total


257



289  (i)
Construction contract-related payables include billings in excess of revenue, together with advances received from customers in respect of work to be
performed under construction contracts and foreseeable losses thereon. Other than deferred and contingent consideration, the
carrying amounts of trade and other payables approximate their fair value largely due to the short-term maturities and nature of these instruments.  (ii)
Deferred and contingent acquisition consideration The fair value of total contingent consideration is 122 million (2013: 120 million), (Level 3 input in the fair value hierarchy) and deferred consideration is 85 million (2013: 88 million). On an undiscounted basis, the corresponding basis for which the Group may be liable for contingent consideration ranges from nil
million to a maximum of 145 million. The movement in deferred and contingent consideration during the financial year was as follows:  At 1 January


208



297Translation adjustment


16



(9
)Arising on acquisitions and investments during year (note 30)


3



17Changes in estimate


(6
)


(3
)Paid during year


(26
)


(105
)Discount unwinding


12



11At 31 December


207



208






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##### Table of Contents

19. Movement in Working Capital and Provisions for Liabilities  Inventories
m


Trade
and other receivables
m


Trade
and other payables
m


Provisions
for liabilities
m


Total
mAt 1 January 2014


2,254



2,609



(3,043
)


(380
)


1,440Translation adjustment


128



165



(173
)


(27
)


93Arising on acquisition (note 30)


23



20



(17
)


(1
)


25Disposals


(9
)


(4
)


2



-



(11
)Deferred and contingent acquisition consideration:- arising on acquisitions during year (note 30)


-



-



(3
)


-



(3
)- paid during year


-



-



26



-



26Reclassified as held for sale


(102
)


(79
)


98



7



(76
)Interest accruals and discount unwinding


-



-



(1
)


(16
)


(17
)(Decrease)/increase in working capital and provisions for liabilities


(34
)


18



(40
)


21



(35
)At 31 December 2014


2,260



2,729



(3,151
)


(396
)


1,442The equivalent disclosure for the prior years is as follows:At 1 January 2013


2,333



2,603



(3,052
)


(366
)


1,518Translation adjustment


(74
)


(80
)


91



9



(54
)Arising on acquisition (note 30)


41



53



(80
)


(14
)


-Disposals


(9
)


(4
)


7



-



(6
)Deferred and contingent acquisition consideration:- arising on acquisitions during year (note 30)


-



-



(17
)


-



(17
)- paid during year


-



-



105



-



105Interest accruals and discount unwinding


-



-



(14
)


(15
)


(29
)(Decrease)/increase in working capital and provisions for liabilities


(37
)


37



(83
)


6



(77
)At 31 December 2013


2,254



2,609



(3,043
)


(380
)


1,440At 1 January 2012


2,179



2,602



(2,901
)


(365
)


1,515Translation adjustment


(15
)


(5
)


8



2



(10
)Arising on acquisition (note 30)


98



103



(57
)


(1
)


143Disposals


(22
)


(23
)


23



1



(21
)Deferred and contingent acquisition consideration:- arising on acquisitions during year (note 30)


-



-



(151
)


-



(151
)- paid during year


-



-



30



-



30Interest accruals and discount unwinding


-



-



(31
)


(15
)


(46
)Increase/(decrease) in working capital and provisions for liabilities


93



(74
)


27



12



58At 31 December 2012


2,333



2,603



(3,052
)


(366
)


1,518


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20. Analysis of Net Debt Components of net debt Net debt is a non-GAAP
measure which we provide to investors as we believe they find it useful. Net debt comprises cash and cash equivalents, derivative financial instrument assets and liabilities and interest-bearing loans and borrowings and enables investors to see the
economic effects of these in total (see note 21 for details of the capital and risk management policies employed by the Group). Net debt is commonly used in computations such as net debt as a % of total equity and net debt as a % of market
capitalisation.  As at 31 December 2014




As at 31 December 2013Fair value(i)
m


Book valuem




Fair value (i)m


Book valuemCash and cash equivalents (note 22)


3,295



3,295





2,540



2,540Interest-bearing loans and borrowings (note 23)


(6,302
)


(5,866
)




(5,799
)


(5,540
)Derivative financial instruments (net) (note 24)


79



79





27



27Group net debt


(2,928
)


(2,492
)




(3,232
)


(2,973
) (i) All interest-bearing loans and borrowings are Level 2 fair value measurements. The following table shows the effective interest rates on period-end fixed, gross and net debt:  As at 31 December 2014




As at 31 December 2013m


Interest
rate


Weighted averagefixed period
Years




m


Interestrate


Weighted averagefixed
period YearsInterest-bearing loans and borrowings nominal - fixed rate (i)


(5,657
)












(5,362
)Derivative financial instruments - fixed rate


1,227













1,518Net fixed rate debt including derivatives


(4,430
)


4.5%



5.2





(3,844
)


5.5%



5.1Interest-bearing loans and borrowings nominal - floating rate (ii)


(63
)












(54
)Adjustment of debt from nominal to book value (i)


(146
)












(124
)Derivative financial instruments - currency floating rate


(1,148
)












(1,491
)Gross debt including derivative financial instruments


(5,787
)


4.1%









(5,513
)


4.6%Cash and cash equivalents - floating rate


3,295













2,540Group net debt


(2,492
)












(2,973
)Cash at bank and in hand reclassified as held for sale (note 22)


(33
)












-Group net debt excluding cash reclassified as held for sale


(2,525
)












(2,973
)  (i)
Of the Groups nominal fixed rate debt at 31 December 2014, 1,616 million (2013: 1,882 million) was hedged to floating rate at inception using interest rate swaps. The balance of nominal fixed rate debt of 4,041 million
(2013: 3,480 million) pertains to financial liabilities measured at amortised cost in accordance with IAS 39 Financial Instruments: Recognition and Measurement.  (ii)
Floating rate debt comprises bank borrowings and finance leases bearing interest at rates set in advance for periods ranging from overnight to less than one
year largely by reference to inter-bank interest rates. Reconciliation of opening to closing net debt  2014m


2013m


2012mAt 1 January


(2,973
)


(2,909
)


(3,335
)Debt in acquired companies


(7
)


(44
)


(42
)Debt in disposed companies


-



17



2Increase in interest-bearing loans, borrowings and finance leases


(901
)


(1,491
)


(487
)Net cash flow arising from derivative financial instruments


11



(64
)


(13
)Repayment of interest-bearing loans, borrowings and finance leases


934



586



394Increase in cash and cash equivalents


625



845



524Mark-to-market adjustment


(3
)


10



9Translation adjustment


(178
)


77



39At 31 December


(2,492
)


(2,973
)


(2,909
)






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20. Analysis of Net Debt|continued Currency profile The currency profile of the Groups net
debt and net worth (capital and reserves attributable to the Companys equity holders) as at 31 December 2014 and 2013 is as follows:  eurom


USDollarm


PoundSterlingm


SwissFrancm


Other(iii)m


TotalmGroup net debt* by major currency


(871
)


(1,117
)


(68
)


(250
)


(219
)


(2,525
)Non-debt assets (including cash reclassified as held for sale) and liabilities analysed as follows:Non-current assets


3,061



7,003



346



778



2,015



13,203Current assets


1,611



2,558



489



326



466



5,450Non-current liabilities


(616
)


(1,481
)


(92
)


(270
)


(71
)


(2,530
)Current liabilities


(1,117
)


(1,436
)


(368
)


(191
)


(288
)


(3,400
)Non-controlling interests


(5
)


(4
)


-



(12
)


-



(21
)Capital and reserves attributable to the Companys equity holders


2,063



5,523



307



381



1,903



10,177The equivalent disclosure for the prior year is as follows:Group net debt by major currency


(1,304
)


(1,476
)


(57
)


11



(147
)


(2,973
)Non-debt assets and liabilities analysed as follows:Non-current assets


3,378



6,293



433



796



2,113



13,013Current assets


1,568



2,138



234



330



526



4,796Non-current liabilities


(522
)


(1,221
)


(107
)


(169
)


(77
)


(2,096
)Current liabilities


(1,126
)


(1,221
)


(208
)


(198
)


(301
)


(3,054
)Non-controlling interests


(8
)


(3
)


-



(12
)


(1
)


(24
)Capital and reserves attributable to the Companys equity holders


1,986



4,510



295



758



2,113



9,662  (iii)
The principal currencies included in this category are the Chinese Renminbi, the Polish Zloty, the Indian Rupee, the Ukrainian Hryvnia, the Canadian Dollar,
the Israeli Shekel, the Turkish Lira and the Argentine Peso. * Excluding 33 million cash reclassified as held for
sale which is analysed by major currency in current assets above.


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21. Capital and Financial
Risk Management Capital management Overall summary The primary objectives of CRHs capital management strategy are to ensure that the Group maintains a strong credit rating to support its business and
to create shareholder value by managing the debt and equity balance and the cost of capital. No changes were made in the objectives, policies or processes for managing capital during 2014. The Board periodically reviews the capital structure of the Group, including the cost of capital and the risks associated with each class of capital. The
Group manages and, if necessary, adjusts its capital structure taking account of underlying economic conditions; any material adjustments to the Groups capital structure in terms of the relative proportions of debt and equity are approved by
the Board. In order to maintain or adjust the capital structure, the Group may issue new shares, dispose of assets, amend investment plans, alter dividend policy or return capital to shareholders. The Group is committed to optimising the use of its
balance sheet within the confines of the overall objective to maintain an investment grade credit rating. The capital structure of the Group, which
comprises net debt and capital and reserves attributable to the Companys equity holders, may be summarised as follows:  2014m


2013mCapital and reserves attributable to the Companys equity holders


10,177



9,662Net debt


2,492



2,973Capital and net debt


12,669



12,635 Financial risk management objectives and policies The Group uses financial instruments throughout its businesses: interest-bearing loans and borrowings, cash and cash equivalents and finance leases are
used to finance the Groups operations; trade receivables and trade payables arise directly from operations; and derivatives, principally interest rate and currency swaps and forward foreign exchange contracts, are used to manage interest rate
risks and currency exposures and to achieve the desired profile of borrowings. The Group does not trade in financial instruments nor does it enter into any leveraged derivative transactions. The Groups corporate treasury function provides services to the business units, co-ordinates access to domestic and international financial markets,
and monitors and manages the financial risks relating to the operations of the Group. The Head of Group Financial Operations reports to the General Manager of Finance and the activities of the corporate treasury function are subject to regular
internal audit. Systems are in place to monitor and control the Groups liquidity risks. The Groups net debt position forms part of the monthly documentation presented to the Board of Directors. The main risks attaching to the Groups financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk.
Commodity price risk arising from financial instruments is of minimal relevance given that exposure is confined to a small number of contracts entered into for the purpose of hedging future movements in energy costs. The Board reviews and agrees
policies for the prudent management of each of these risks as documented below. Interest rate risk The Groups exposure to market risk for changes in interest rates stems predominantly from its long-term debt obligations. Interest cost is managed
using a mix of fixed and floating rate debt. With the objective of managing this mix in a cost-efficient manner, the Group enters into interest rate swaps, under which the Group contracts to exchange, at predetermined intervals, the difference
between fixed and variable interest amounts calculated by reference to a pre-agreed notional principal. Such contracts enable the Group to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt and the cash flow
exposures of issued floating rate debt. The majority of these swaps are designated under IAS 39 Financial Instruments: Recognition and
Measurement to hedge underlying debt obligations and qualify for hedge accounting; undesignated financial instruments are termed not designated as hedges in the analysis of derivative financial instruments presented in note 24. The
following table demonstrates the impact on profit/(loss) before tax and total equity of a range of possible changes in the interest rates applicable to net floating rate borrowings, with all other variables held constant. These impacts are
calculated based on the closing balance sheet for the relevant period and assume all floating interest rates and interest curves change by the same amount. For profit/(loss) before tax, the impact shown is the impact on closing balance sheet
floating rate net debt for a full year while for total equity the impact shown is the impact on the value of financial instruments.  Percentage change in cost of borrowings



+/- 1%

+/- 0.5%Impact on profit/(loss) before tax

2014

+/- 21m

+/- 10m2013

+/- 10m

+/- 5m2012

+/- 5m

+/- 3mImpact on total equity

2014

-/+ 5m

-/+ 2m2013

-/+ 8m

-/+ 4m2012

+/- 1m

+/-0.5m






168      CRH




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##### Table of Contents

21. Capital and Financial Risk Management|continued Foreign currency risk Due to the nature of building materials,
which in general exhibit a low value-to-weight ratio, CRHs activities are conducted primarily in the local currency of the country of operation resulting in low levels of foreign currency transaction risk; variances arising in this regard are
reflected in operating costs or cost of sales in the Consolidated Income Statement in the period in which they arise. Given the Groups presence
in 34 countries worldwide, the principal foreign exchange risk arises from fluctuations in the euro value of the Groups net investment in a wide basket of currencies other than the euro; such changes are reported separately within the
Consolidated Statement of Comprehensive Income. A currency profile of the Groups net debt and net worth is presented in note 20. The Groups established policy is to spread its net worth across the currencies of its various operations
with the objective of limiting its exposure to individual currencies and thus promoting consistency with the geographical balance of its operations. In order to achieve this objective, the Group manages its borrowings, where practicable and cost
effective, to hedge a portion of its foreign currency assets. Hedging is done using currency borrowings in the same currency as the assets being hedged or through the use of other hedging methods such as currency swaps. The following table demonstrates the sensitivity of profit/(loss) before tax and equity to selected movements in the relevant US$/ exchange rate (with all other variables held constant); the US Dollar has been selected as the appropriate currency for this analysis given the materiality of the Groups activities in the
United States. The impact on profit/(loss) before tax is based on changing the US$/ exchange rate used in calculating profit/(loss) before tax for the period. The impact on total equity and
financial instruments is calculated by changing the US$/ exchange rate used in measuring the closing balance sheet.  Percentage change in relevant US$/ exchange rate



+/- 5%

+/- 2.5%Impact on profit/(loss) before tax

2014

-/+ 26m

-/+ 13m2013

-/+ 14m

-/+ 7m2012

-/+ 14m

-/+ 7mImpact on total equity*

2014

-/+ 263m

-/+ 135m2013

-/+ 215m

-/+ 110m2012

-/+ 210m

-/+ 108m* Includes the impact on financial instruments which is as follows:

2014

+/- 53m

+/- 27m2013

+/- 70m

+/- 36m2012

+/- 87m

+/- 45m Financial instruments include deposits, money market funds, bank loans, medium term notes and other fixed term debt,
interest rate swaps, commodity swaps and foreign exchange contracts. They exclude trade receivables and trade payables. Credit/counterparty risk In addition to cash at bank and in hand, the Group holds significant cash balances which are invested on a short-term basis and are classified as cash
equivalents (see note 22). These deposits and other financial instruments (principally certain derivatives and loans and receivables included within financial assets) give rise to credit risk on amounts due from counterparty financial institutions
(stemming from their insolvency or a downgrade in their credit ratings). Credit risk is managed by limiting the aggregate amount and duration of exposure to any one counterparty primarily depending on its credit rating and by regular review of these
ratings. Acceptable credit ratings are high investment-grade ratings - generally counterparties have ratings of A2/A or higher from Moodys/Standard & Poors ratings agencies. The maximum exposure arising in the event of default
on the part of the counterparty (including insolvency) is the carrying value of the relevant financial instrument. In its worldwide insurance
programme, the Group carries appropriate levels of insurance for typical business risks (including product liability) with various leading insurance companies. However, in the event of the failure of one or more of its insurance counterparties, the
Group could be impacted by losses where recovery from such counterparties is not possible. Credit risk arising in the context of the Groups
operations is not significant with the total bad debt provision at the balance sheet date amounting to 4.6% of gross trade receivables (2013: 5.5%). Customer credit risk is managed at appropriate Group locations according to established policies,
procedures and controls. Customer credit quality is assessed in line with strict credit rating criteria and credit limits established where appropriate. Outstanding customer balances are regularly monitored and a review for indicators of impairment
(evidence of financial difficulty of the customer, payment default, breach of contract etc.) is carried out at each reporting date. Significant balances are reviewed individually while smaller balances are grouped and assessed collectively.
Receivables balances are in general unsecured and non-interest-bearing. The trade receivables balances disclosed in note 17 comprise a large number of customers spread across the Groups activities and geographies with balances classified as
neither past due nor impaired representing 72% of the total trade receivables balance at the balance sheet date (2013: 72%); amounts receivable from related parties (notes 17 and 31) are immaterial. Factoring and credit guarantee arrangements are
employed in certain of the Groups operations where deemed to be of benefit by operational management. Liquidity risk The principal liquidity risks faced by the Group stem from the maturation of debt obligations and derivative transactions. A downgrade of CRHs
credit ratings may give rise to increases in funding costs in respect of future debt and may impair the Groups ability to raise funds on acceptable terms. The Groups corporate treasury function ensures that sufficient resources are
available to meet such liabilities as they fall due through a combination of cash and cash equivalents, cash flows and undrawn committed bank facilities. Flexibility in funding sources is achieved through a variety of means including
(i) maintaining cash and cash equivalents only with a diversity of highly-rated counterparties; (ii) limiting the maturity of such balances; (iii) borrowing the bulk of the Groups debt requirements under committed bank lines or
other term financing; and (iv) having surplus committed lines of credit. The undrawn committed facilities available to the Group as at the
balance sheet date are quantified in note 23; these facilities span a wide number of highly-rated financial institutions thus minimising any potential exposure arising from concentrations in borrowing sources. The repayment schedule (analysed by
maturity date) applicable to the Groups outstanding interest-bearing loans and borrowings as at the balance sheet date is also presented in note 23.


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21. Capital and Financial
Risk Management|continued The tables below show the projected contractual undiscounted total cash outflows (principal and
interest) arising from the Groups trade and other payables, gross debt and derivative financial instruments. The tables also include the gross cash inflows projected to arise from derivative financial instruments. These projections are based
on the interest and foreign exchange rates applying at the end of the relevant financial year.  Within1 yearm


Between1 and 2yearsm


Between2 and 3yearsm


Between3 and 4yearsm


Between4 and 5yearsm


After5 yearsm


TotalmAt 31 December 2014Financial liabilities - cash outflowsTrade and other payables


2,894



178



25



16



11



56



3,180Finance leases


2



2



2



1



2



4



13Other interest-bearing loans and borrowings


452



1,371



1



536



500



2,882



5,742Interest payments on other interest-bearing loans and borrowings


253



207



157



137



90



305



1,149Cross-currency swaps - gross cash outflows


1,729



-



-



-



-



-



1,729Gross projected cash outflows


5,330



1,758



185



690



603



3,247



11,813Derivative financial instruments - cash inflowsInterest rate swaps - net cash inflows


(34
)


(28
)


(19
)


(14
)


(6
)


(18
)


(119
)Cross-currency swaps - gross cash inflows


(1,738
)


-



-



-



-



-



(1,738
)Gross projected cash inflows


(1,772
)


(28
)


(19
)


(14
)


(6
)


(18
)


(1,857
)The equivalent disclosure for the prior year is as follows:At 31 December 2013Financial liabilities - cash outflowsTrade and other payables


2,754



140



20



22



22



128



3,086Finance leases


3



2



1



6



1



2



15Other interest-bearing loans and borrowings


955



353



1,203



-



472



2,445



5,428Interest payments on finance leases


1



1



-



-



-



-



2Interest payments on other interest-bearing loans and borrowings


263



214



178



134



116



318



1,223Cross-currency swaps - gross cash outflows


2,196



327



-



-



-



-



2,523Gross projected cash outflows


6,172



1,037



1,402



162



611



2,893



12,277Derivative financial instruments - cash inflowsInterest rate swaps - net cash inflows


(40
)


(30
)


(20
)


(12
)


(13
)


(22
)


(137
)Cross-currency swaps - gross cash inflows


(2,183
)


(308
)


-



-



-



-



(2,491
)Gross projected cash inflows


(2,223
)


(338
)


(20
)


(12
)


(13
)


(22
)


(2,628
) Commodity price risk The fair
value of derivatives used to hedge future energy costs was 19 million unfavourable as at the balance sheet date (2013: 4 million
unfavourable).   22. Cash and Cash Equivalents Cash and cash equivalents balances are spread across a wide number of highly-rated financial institutions. The credit risk attaching to these items is
documented in note 21. Cash and cash equivalents are included in the Consolidated Balance Sheet at fair value and are analysed as follows:  2014


2013m


mCash at bank and in hand


689



582Investments (short-term deposits)


2,573



1,958Total


3,262



2,540 Cash at bank earns interest at floating rates based on daily deposit bank rates. Short-term deposits, which include bank
and money market deposits, are made for varying periods of between one day and three months depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. Cash and cash equivalents at fair value include the following for the purposes of the Consolidated Statement of Cash Flows:  Cash at bank and in hand


689



582Investments (short-term deposits)


2,573



1,958Cash at bank and in hand reclassified as held for sale


33



-Total


3,295



2,540






170      CRH




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##### Table of Contents

23. Interest-bearing Loans and Borrowings Loans and borrowings outstanding  2014m


2013mBank overdrafts


70



40Bank loans


16



28Finance leases


13



15Bonds and private placements


5,750



5,439Other


17



18Interest-bearing loans and borrowings*


5,866



5,540  *
Including loans of 1 million (2013: 1 million) secured on specific items of property, plant and equipment; these figures do not include
finance leases. Maturity profile of loans and borrowings and undrawn committed facilities  As at 31 December 2014





As at 31 December 2013Loans and
borrowings m


Undrawn
committed
facilities** m





Loans and
borrowings m


Undrawn
committed
facilities** mWithin one year


447



22







961



-Between one and two years


1,395



-







349



40Between two and three years


-



-







1,240



1,625Between three and four years


562



-







4



85Between four and five years


505



2,641







506



200After five years


2,957



-







2,480



-Total


5,866



2,663







5,540



1,950  **
The Group manages its borrowing ability by entering into committed borrowing agreements. Revolving committed bank facilities are generally available to the
Group for periods of up to five years from the date of inception. The figures shown above are the undrawn committed facilities available to be drawn by the Group at 31 December 2014. Guarantees The Company has given letters of guarantee to secure
obligations of subsidiary undertakings as follows: 5.8 billion in respect of loans, bank advances, derivative obligations and future lease obligations (2013: 5.5 billion), 288 million in respect of letters of credit (2013: 270 million) and 5 million in respect of other obligations (2013: nil million). Pursuant to the provisions of Section 17, Companies (Amendment) Act, 1986, the Company has guaranteed the liabilities of its wholly-owned subsidiary
undertakings and the Oldcastle Finance Company and Oldcastle North America Funding Company general partnerships in the Republic of Ireland for the financial year ended 31 December 2014 and, as a result, such subsidiary undertakings and the
general partnerships have been exempted from the filing provisions of Section 7, Companies (Amendment) Act, 1986 and Regulation 20 of the European Communities (Accounts) Regulations, 1993 respectively. Lender covenants The Groups major bank facilities and
debt issued pursuant to Note Purchase Agreements in private placements require the Group to maintain certain financial covenants. Non-compliance with financial covenants would give the relevant lenders the right to terminate facilities and demand
early repayment of any sums drawn thereunder thus altering the maturity profile of the Groups debt and the Groups liquidity. Calculations for financial covenants are completed for twelve-month periods half-yearly on 30 June and 31
December. The Group was in full compliance with its financial covenants throughout each of the periods presented. The Group is not aware of any stated events of default as defined in the Agreements. The financial covenants are:  (1)
Minimum interest cover defined as PBITDA/net interest (all as defined in the relevant agreement) cover at no lower than 4.5 times. As at
31 December 2014 the ratio was 7.0 times (2013: 6.3 times; 2012: 6.5 times);  (2)
Minimum net worth defined as total equity plus deferred tax liabilities and capital grants less repayable capital grants being in aggregate no
lower than 5.0 billion (2013: 5.1 billion) (such minimum being adjusted for foreign exchange translation impacts). As at 31 December
2014 net worth (as defined in the relevant agreement) was 11.5 billion (2013: 10.9 billion).


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24. Derivative Financial
Instruments The fair values of derivative financial instruments are analysed by year of maturity and by accounting designation as
follows:  Fairvaluehedgesm


Cash flowhedgesm


Netinvestmenthedges
m


Notdesignatedas hedgesm


TotalmAt 31 December 2014Derivative assetsWithin one year - current assets


-



2



13



-



15Between one and two years


22



-



-



-



22Between three and four years


26



-



-



-



26Between four and five years


-



-



-



9



9After five years


30



-



-



-



30Non-current assets


78



-



-



9



87Total derivative assets


78



2



13



9



102Derivative liabilitiesWithin one year - current liabilities


-



(7
)


(4
)


(9
)


(20
)Between one and two years


-



(1
)


-



-



(1
)Between two and three years


-



(1
)


-



-



(1
)Between three and four years


-



(1
)


-



-



(1
)Non-current liabilities


-



(3
)


-



-



(3
)Total derivative liabilities


-



(10
)


(4
)


(9
)


(23
)Net asset arising on derivative financial instruments


78



(8
)


9



-



79The equivalent disclosure for the prior year is as follows:At 31 December 2013Derivative assetsWithin one year - current assets


9



-



8



-



17Between two and three years


30



-



-



-



30Between four and five years


28



-



-



-



28After five years


-



-



-



5



5Non-current assets


58



-



-



5



63Total derivative assets


67



-



8



5



80Derivative liabilitiesWithin one year - current liabilities


-



(2
)


(17
)


-



(19
)Between one and two years


-



(21
)


-



-



(21
)Between two and three years


-



(1
)


-



-



(1
)Between three and four years


-



(1
)


-



-



(1
)After five years


(11
)


-



-



-



(11
)Non-current liabilities


(11
)


(23
)


-



-



(34
)Total derivative liabilities


(11
)


(25
)


(17
)


-



(53
)Net asset arising on derivative financial instruments


56



(25
)


(9
)


5



27






172      CRH




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##### Table of Contents

24. Derivative Financial Instruments|continued At 31 December 2014 and 2013, the Group had no master netting or similar arrangements, collateral posting requirements, and enforceable right of
set-off agreements with any of its derivative counterparts. Fair value hedges consist of interest rate swaps and currency swaps. These instruments
hedge risks arising from changes in asset/liability fair values due to interest rate and foreign exchange rate movements. Cash flow hedges consist of
forward foreign exchange and commodity contracts and interest rate and currency swaps. These instruments hedge risks arising to future cash flows from movements in foreign exchange rates, commodity prices and interest rates. Cash flow hedges are
expected to affect profit and loss over the period to maturity. Net investment hedges comprise cross-currency swaps and hedge changes in the value of
net investments due to currency movements. The profit/(loss) arising on fair value, cash flow, net investment hedges and related hedged items
reflected in the Consolidated Income Statement is shown below:  2014m


2013
m


2012
mCash flow hedges - ineffectiveness


-



-



(3
)Fair value of hedge instruments


15



(68
)


(16
)Fair value of the hedged items


(16
)


71



21Components of other comprehensive income - cash flow hedgesLosses arising during the year:- commodity forward contracts


(6
)


(2
)


-Reclassification adjustments for losses included in:- the Consolidated Income Statement


-



-



1Total


(6
)


(2
)


1Fair value hierarchy




2014


2013Level 2m


Level 2mAssets measured at fair valueFair value hedges - cross currency and interest rate swaps






78



67Net investment hedges - cross currency swaps






13



8Not designated as hedges (held-for-trading) - interest rate swaps






9



5Cash flow hedges - cross currency, interest rate swaps and commodity forwards






2



-Total






102



80Liabilities measured at fair valueFair value hedges - cross currency and interest rate swaps






-



(11
)Cash flow hedges - cross currency, interest rate swaps and commodity forwards






(10
)


(25
)Net investment hedges - cross currency swaps






(4
)


(17
)Not designated as hedges (held-for-trading) - interest rate swaps






(9
)


-Total






(23
)


(53
) At 31 December 2014 and 2013 there were no derivatives valued using Level 1 or Level 3 fair value techniques.
Valuation methods for Levels 1, 2 and 3 are described in the fair value hierarchy section of the accounting policies on page 145.


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25. Provisions for
Liabilities  Net present cost

At 1Januarym


Translationadjustmentm


Arising onacquisition(note 30)m


Providedduringyear
m


Utilisedduringyearm


Reclassifiedas heldfor sale
m


Reversedunusedm


Discountunwindingm


At 31Decemberm31 December 2014Insurance (i)


181



20



-



52



(50
)


-



(3
)


8



208Environment and remediation (ii)


87



5



-



12



(4
)


(4
)


(4
)


4



96Rationalisation and redundancy (iii)


43



1



-



30



(48
)


-



(3
)


1



24Other (iv)


69



1



1



14



(8
)


(3
)


(9
)


3



68Total


380



27



1



108



(110
)


(7
)


(19
)


16



396Analysed as:Non-current liabilities


231































257Current liabilities


149































139Total


380































396The equivalent disclosure for the prior year is as follows:31 December 2013Insurance (i)


191



(7
)


-



42



(50
)


-



(4
)


9



181Environment and remediation (ii)


82



(1
)


5



6



(4
)


-



(4
)


3



87Rationalisation and redundancy (iii)


26



-



5



55



(38
)


-



(6
)


1



43Other (iv)


67



(1
)


4



14



(11
)


-



(6
)


2



69Total


366



(9
)


14



117



(103
)


-



(20
)


15



380Analysed as:Non-current liabilities


256































231Current liabilities


110































149Total


366































380  (i)
This provision relates to actual and potential obligations arising under the self-insurance components of the Groups insurance arrangements which
comprise employers liability (workers compensation in the United States), public and products liability (general liability in the United States), automobile liability, property damage, business interruption and various other insurances;
a substantial proportion of the total provision pertains to claims which are classified as incurred but not reported. Due to the extended timeframe associated with many of the insurances, a significant proportion of the total provision
is subject to periodic actuarial valuation. The projected cash flows underlying the discounting process are established through the application of actuarial triangulations, which are extrapolated from historical claims experience. The triangulations
applied in the discounting process indicate that the Groups insurance provisions have an average life of six years (2013: six years).  (ii)
This provision comprises obligations governing site remediation and improvement costs to be incurred in compliance with either local or national environmental
regulations together with constructive obligations stemming from established best practice. Whilst a significant element of the total provision will reverse in the medium-term (two to ten years), the majority of the legal and constructive
obligations applicable to long-lived assets (principally mineral-bearing land) will unwind over a 30-year timeframe. In discounting the related obligations, expected future cash outflows have been determined with due regard to extraction status and
anticipated remaining life.  (iii)
These provisions relate to irrevocable commitments under various rationalisation and redundancy programmes, none of which is individually material to the
Group. In 2014, 30 million (2013: 55 million; 2012: 48 million) was provided in
respect of rationalisation and redundancy activities as a consequence of undertaking various cost reduction initiatives across all operations. These initiatives included removing excess capacity from manufacturing and distribution networks and
scaling operations to match market supply and demand; implementation of these initiatives resulted in a reduction in staffing levels in all business segments over recent years. The Group expects that these provisions will be utilised within one to
two years of the balance sheet date (2013: one to two years).  (iv)
This includes provisions relating to guarantees and warranties of 13 million (2013: 14 million) throughout the Group at 31 December 2014. The Group expects that these provisions will be utilised within two years of the balance sheet date (2013: two years). Discount rate sensitivity analysis All non-current provisions
are discounted at a rate of 5% (2013: 5%; 2012: 5%), consistent with the average effective interest rate for the Groups borrowings. There is nil million impact (2013: nil million; 2012: 1 million) on profit before tax of a 1% change in the discount rate applicable to provisions, with all other variables held
constant.






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26. Deferred Income Tax The deductible and taxable temporary differences in respect of which deferred tax has been recognised are as follows:  2014m


2013mReported in balance sheet after offsetDeferred tax liabilities


1,305



1,166Deferred tax assets


(171
)


(107
)Net deferred income tax liability


1,134



1,059Deferred income tax assets (deductible temporary differences)Deficits on Group retirement benefit obligations (note 27)


140



74Revaluation of derivative financial instruments to fair value


14



15Tax loss carryforwards


97



98Share-based payment expense


2



2Provisions for liabilities and working capital-related items


187



144Other deductible temporary differences


37



38Total


477



371 Deferred income tax assets have been recognised in respect of all deductible temporary differences, with the exception of
some tax loss carryforwards. The amount of tax losses where recovery is not probable and is therefore not recognised in the Consolidated Balance Sheet is 937 million (2013: 712 million). The vast majority will expire post 2019 (2013: 2018).  Deferred income tax liabilities (taxable temporary differences)Taxable temporary differences principally attributable to accelerated tax depreciation and fair value adjustments arising on acquisition (i)


1,575



1,400Revaluation of derivative financial instruments to fair value


18



13Rolled-over capital gains


18



17Total


1,611



1,430(i) Fair value adjustments arising on acquisition principally relate to property, plant and equipment.Movement in net deferred income tax liabilityAt 1 January


1,059



1,041Translation adjustment


125



(37
)Net expense for the year (note 10)


36



4Arising on acquisition (note 30)


2



8Reclassified as held for sale


(19
)


-Movement in deferred tax asset on Group retirement benefit obligations


(69
)


43At 31 December


1,134



1,059


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27. Retirement Benefit
Obligations The Group operates either defined benefit or defined contribution pension schemes in all of its principal operating areas.
The disclosures included below relate to all pension schemes in the Group, including any schemes reclassified as held for sale. The Group operates
defined benefit pension schemes in the Republic of Ireland, Britain and Northern Ireland, the Netherlands, Belgium, Germany, Switzerland and the United States; for the purposes of the disclosures which follow, the schemes in the Republic of Ireland,
the Netherlands, Belgium and Germany have been aggregated into a Eurozone category on the basis of common currency and financial assumptions. The majority of the defined benefit pension schemes operated by the Group are funded as
disclosed in the analysis of the defined benefit obligation presented below with unfunded schemes restricted to one scheme in each of the Netherlands and the United States and three schemes in Germany. All funded defined benefit schemes are administered by separate funds that are legally separate from the Group under the jurisdiction of Trustees. Each of
the Groups schemes operate under broadly similar regulatory frameworks. The Trustees of the various pension funds in existence across the Group are required by law and by their Articles of Association to act in the best interests of the scheme
participants and are responsible for the definition of investment strategy and for scheme administration. The level of benefits available to members depends on length of service and either their average salary over their period of employment or
their salary in the final years leading up to retirement. The Groups pension schemes in Switzerland are contribution-based schemes with guarantees to provide further contributions in the event that certain targets are not met largely in
relation to investment return and the annuity conversion factor on retirement. Provision has been made in the financial statements for
post-retirement healthcare obligations in respect of certain current and former employees principally in the United States and for long-term service commitments in respect of certain employees in the Eurozone and Switzerland. These obligations are
unfunded in nature and the required disclosures form part of this note. Defined benefit pension schemes - principal risks Through its defined benefit pension schemes and post-retirement healthcare plans, the Group is exposed to a number of risks, the most significant of which
are detailed below: Asset volatility: Under IFRS, the assets of the Groups defined benefit pension schemes are reported at fair value
(using bid prices, where relevant). The majority of the schemes assets comprise of equities, bonds and property all of which may fluctuate significantly in value from period to period. Given that liabilities are discounted to present value
based on bond yields and that bond prices are inversely related to yields, an increase in the liability discount rate (which would reduce liabilities) would reduce bond values though not necessarily by an equal magnitude. Given the maturity of certain of the Groups funded defined benefit pension schemes, de-risking frameworks have been introduced to mitigate deficit
volatility and enable better matching of investment returns with the cash outflows related to benefit obligations. These frameworks entail the usage of asset-liability matching techniques whereby triggers are set for the conversion of equity
holdings into bonds of similar average duration to the relevant liabilities. Discount rates: The discount rates employed in determining the
present value of the schemes liabilities are determined by reference to market yields at the balance sheet date on high-quality corporate bonds of a currency and term consistent with the currency and term of the associated post-employment
benefit obligations. Changes in discount rates impact the quantum of liabilities as discussed above. Inflation risk: Some of the Groups
pension obligations have an inflation linkage; higher inflation will lead to higher liabilities (although in most cases, caps on the level of inflationary increases are in place to protect the scheme against extreme inflation). Longevity risk: In the majority of cases, the Groups defined benefit pension schemes provide benefits for life with spousal and dependent
child reversionary provisions; increases in life expectancy will therefore give rise to higher liabilities. Financial assumptions - scheme liabilities The major long-term assumptions used by the Groups actuaries in the computation of scheme liabilities as at 31 December 2014 , 31 December 2013 and
31 December 2012 are as follows:  Eurozone


Britain and
Northern Ireland


Switzerland


United States2014


2013


2012


2014


2013


2012


2014


2013


2012


2014


2013


2012%


%


%


%


%


%


%


%


%


%


%


%Rate of increase in:- salaries


3.75



4.00



4.00



4.00



4.30



4.00



2.25



2.25



2.25



3.50



3.50



3.50- pensions in payment


1.75



2.00



2.00



3.00-3.20



3.30-3.50



3.00-3.40



-



0.25



0.25



-



-



-Inflation


1.75



2.00



2.00



3.00



3.30



3.00



1.25



1.25



1.25



2.00



2.00



2.00Discount rate


2.00



3.70



3.80



3.50



4.60



4.50



1.15



2.35



1.85



3.80



4.70



3.75Medical cost trend rate


n/a



n/a



n/a



n/a



n/a



n/a



n/a



n/a



n/a



16.70



7.40



6.25The mortality assumptions employed in determining the present value of scheme liabilities under IAS 19 Employee Benefits are in accordance with the
underlying funding valuations and represent actuarial best practice in the relevant jurisdictions taking account of mortality experience and industry circumstances. With regard to the most material of the Groups schemes, the future life
expectations factored into the relevant valuations, based on retirement at 65 years of age for current and future retirees, are as follows:Republic of
Ireland


Britain and
Northern Ireland


Switzerland2014


2013


2012


2014


2013


2012


2014


2013


2012Current retirees- male



22.8



22.7



22.6



23.2



23.2



23.2



21.3



21.3



19.7- female



24.9



24.9



24.4



25.8



25.7



25.8



23.8



23.8



22.0Future retirees- male



25.8



25.7



25.7



25.6



25.5



24.8



23.5



23.5



19.7- female



26.8



26.7



26.7



28.2



28.2



27.4



25.9



25.9



22.0 The above data allow for future improvements in life expectancy.






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27. Retirement Benefit Obligations|continued Impact on Consolidated Income Statement The total retirement
benefit expense in the Consolidated Income Statement is as follows:  2014


2013


2012m


m


mTotal defined contribution expense


152



149



142Total defined benefit expense


63



52



39Total expense in Consolidated Income Statement


215



201



181 At 31 December 2014, 44 million (2013: 34 million) was included in other payables in respect of defined contribution pension liabilities. Analysis of
defined benefit expense Eurozone


Britain andNorthern Ireland


Switzerland


United States


Total Group2014


2013


2012


2014


2013


2012


2014


2013


2012


2014


2013


2012


2014


2013


2012m


m


m


m


m


m


m


m


m


m


m


m


m


m


mCharged in arriving at Group profit before finance costs:Current service cost


11



11



7



14



13



14



24



27



25



2



-



(2
)


51



51



44Administration expenses


1



1



-



2



1



2



-



1



-



-



-



-



3



3



2Past service costs


(5
)


(6
)


(33
)


-



(3
)


-



-



(15
)


1



-



-



-



(5
)


(24
)


(32
)7



6



(26
)


16



11



16



24



13



26



2



-



(2
)


49



30



14Included in finance income and finance costs respectively:Interest income on scheme assets


(29
)


(27
)


(29
)


(31
)


(26
)


(26
)


(16
)


(12
)


(16
)


(9
)


(6
)


(7
)


(85
)


(71
)


(78
)Interest cost on scheme liabilities


37



39



44



34



30



31



17



14



17



11



10



11



99



93



103Net interest expense


8



12



15



3



4



5



1



2



1



2



4



4



14



22



25Net charge to Consolidated Income Statement


15



18



(11
)


19



15



21



25



15



27



4



4



2



63



52



39 Past service costs also include curtailment and settlement gains. During 2014, there were no significant curtailment or
settlement gains (2013: curtailment gain of 15 million). The prior year curtailment gain arose due to the implementation of changes to the terms of a number of the Groups defined benefit
pension schemes in Switzerland. No reimbursement rights have been recognised as assets in accordance with IAS 19. Reconciliation of scheme assets (bid value) Eurozone


Britain andNorthern Ireland


Switzerland


United States


Total Group2014


2013


2014


2013


2014


2013


2014


2013


2014


2013m


m


m


m


m


m


m


m


m


mAt 1 January


790



710



662



597



683



661



179



174



2,314



2,142Movement in yearAdministration expenses


(1
)


(1
)


(2
)


(1
)


-



(1
)


-



-



(3
)


(3
)Interest income on scheme assets


29



27



31



26



16



12



9



6



85



71Remeasurement adjustments- return on scheme assets excluding interest income


87



30



54



44



34



25



4



9



179



108Employer contributions paid


72



70



19



28



17



17



7



9



115



124Contributions paid by plan participants


3



3



-



-



10



10



-



-



13



13Benefit and settlement payments


(45
)


(49
)


(25
)


(21
)


(30
)


(31
)


(14
)


(11
)


(114
)


(112
)Reclassified as held for sale


-



-



(633
)


-



-



-



-



-



(633
)


-Translation adjustment


-



-



49



(11
)


15



(10
)


26



(8
)


90



(29
)At 31 December


935



790



155



662



745



683



211



179



2,046



2,314


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27. Retirement Benefit
Obligations|continued Reconciliation of actuarial value of liabilities Eurozone


Britain andNorthern Ireland


Switzerland


United States


Total Group2014


2013


2014


2013


2014


2013


2014


2013


2014


2013m


m


m


m


m


m


m


m


m


mAt 1 January


(1,045
)


(1,054
)


(723
)


(705
)


(727
)


(765
)


(229
)


(271
)


(2,724
)


(2,795
)Movement in yearCurrent service cost


(11
)


(11
)


(14
)


(13
)


(24
)


(27
)


(2
)


-



(51
)


(51
)Past service costs


5



6



-



3



-



15



-



-



5



24Interest cost on scheme liabilities


(37
)


(39
)


(34
)


(30
)


(17
)


(14
)


(11
)


(10
)


(99
)


(93
)Remeasurement adjustments- experience variations


20



23



1



2



7



17



-



-



28



42- actuarial (loss)/gain from changes in financial assumptions


(306
)


(16
)


(129
)


(13
)


(142
)


64



(27
)


30



(604
)


65- actuarial loss from changes in demographic assumptions


-



-



-



(2
)


-



(51
)


(17
)


-



(17
)


(53
)Contributions paid by plan participants


(3
)


(3
)


-



-



(10
)


(10
)


-



-



(13
)


(13
)Benefit and settlement payments


45



49



25



21



30



31



14



11



114



112Reclassified as held for sale


-



-



714



-



-



-



-



-



714



-Translation adjustment


-



-



(56
)


14



(17
)


13



(37
)


11



(110
)


38At 31 December


(1,332
)


(1,045
)


(216
)


(723
)


(900
)


(727
)


(309
)


(229
)


(2,757
)


(2,724
)Recoverable deficit in schemes


(397
)


(255
)


(61
)


(61
)


(155
)


(44
)


(98
)


(50
)


(711
)


(410
)Related deferred income tax asset


59



39



12



6



30



9



39



20



140



74Net pension liability


(338
)


(216
)


(49
)


(55
)


(125
)


(35
)


(59
)


(30
)


(571
)


(336
)During the year, there were no settlement payments (2013: 11 million) made in respect of the
Groups schemes.Split of scheme liabilities - funded and unfundedFunded defined benefit pension schemes


(1,274
)


(999
)


(930
)


(723
)


(894
)


(722
)


(297
)


(219
)


(3,395
)


(2,663
)Unfunded defined benefit pension schemes


(52
)


(40
)


-



-



-



-



(8
)


(7
)


(60
)


(47
)Total - defined benefit pension schemes


(1,326
)


(1,039
)


(930
)


(723
)


(894
)


(722
)


(305
)


(226
)


(3,455
)


(2,710
)Post-retirement healthcare obligations (unfunded)


-



-



-



-



-



-



(4
)


(3
)


(4
)


(3
)Long-term service commitments (unfunded)


(6
)


(6
)


-



-



(6
)


(5
)


-



-



(12
)


(11
)Actuarial value of liabilities (present value)


(1,332
)


(1,045
)


(930
)


(723
)


(900
)


(727
)


(309
)


(229
)


(3,471
)


(2,724
)Reclassified as held for sale


-



-



714



-



-



-



-



-



714



-Actuarial value of liabilities (present value) excluding schemes reclassified as held for sale


(1,332
)


(1,045
)


(216
)


(723
)


(900
)


(727
)


(309
)


(229
)


(2,757
)


(2,724
) Sensitivity analysis The
impact of a movement (as indicated below) in the principal actuarial assumptions would be as follows:  Eurozone2014
m


Britain andNorthernIreland2014
m


Switzerland2014
m


United
States
2014 m


Total
Group
2014 mScheme liabilities at 31 December 2014


(1,332
)


(930
)


(900
)


(309
)


(3,471
)Revised liabilitiesDiscount rate

Decrease by 0.25%


(1,398
)


(979
)


(941
)


(320
)


(3,638
)Inflation rate

Increase by 0.25%


(1,394
)


(965
)


(900
)


(309
)


(3,568
)Life expectancy

Increase by 1 year


(1,376
)


(963
)


(921
)


(319
)


(3,579
) The above sensitivity analysis is derived through changing the individual assumption while holding all other assumptions constant.






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27. Retirement Benefit Obligations|continued Split of scheme assets Eurozone


Britain andNorthern Ireland


Switzerland


United States


Total Group2014


2013


2014


2013


2014


2013


2014


2013


2014


2013m


m


m


m


m


m


m


m


m


mInvestments quoted in active marketsEquity instruments:- Developed markets


281



262



329



340



260



229



69



92



939



923- Emerging markets


10



12



55



53



-



-



-



-



65



65Debt instruments:- Non Government debt instruments


279



29



166



139



226



210



59



26



730



404- Government debt instruments


265



390



165



69



65



58



67



51



562



568Property


37



29



41



43



31



68



-



-



109



140Cash and cash equivalents


16



47



2



1



-



2



16



4



34



54Investment funds


24



12



17



9



-



-



-



6



41



27Assets held by insurance company


-



-



-



-



-



5



-



-



-



5Unquoted investmentsEquity instruments:- Developed markets


-



-



-



-



1



-



-



-



1



-- Emerging markets


-



-



6



-



-



-



-



-



6



-Debt instruments:- Non Government debt instruments


-



-



-



-



2



-



-



-



2



-Property


3



2



-



-



97



68



-



-



100



70Cash and cash equivalents


17



4



7



2



44



31



-



-



68



37Investment funds


-



-



-



6



-



-



-



-



-



6Assets held by insurance company


3



3



-



-



19



12



-



-



22



15Total assets


935



790



788



662



745



683



211



179



2,679



2,314Reclassified as held for sale


-



-



(633
)


-



-



-



-



-



(633
)


-Total excluding schemes reclassified as held for sale


935



790



155



662



745



683



211



179



2,046



2,314 Actuarial valuations - funding requirements and future cash flows In accordance with statutory requirements in Ireland and Britain (minimum funding requirements), additional annual contributions and lump-sum payments are
required to certain of the schemes in place in those jurisdictions. The funding requirements in relation to the Groups defined benefit schemes are assessed in accordance with the advice of independent and qualified actuaries and valuations are
prepared in this regard either annually, where local requirements mandate that this be done, or at triennial intervals at a maximum in all other cases. In Ireland and Britain, either the attained age or projected unit credit methods are used in the
valuations. In the Netherlands and Switzerland, the actuarial valuations reflect the current unit method, while the valuations are performed in accordance with the projected unit credit methodology in Germany. In the United States, valuations are
performed using a variety of actuarial cost methodologies - current unit, projected unit and aggregate cost. The dates of the actuarial valuations range from April 2011 to January 2014. In general, actuarial valuations are not available for public inspection; however, the results of valuations are advised to the members of the various
schemes on request. The maturity profile of the Groups contracted payments (on a discounted basis) to certain schemes in the Eurozone (Ireland)
and Britain and Northern Ireland is as follows: Eurozone


Britain andNorthern Ireland


Total2014


2013


2012


2014


2013


2012


2014


2013


2012m


m


m


m


m


m


m


m


mWithin one year


18



18



18



8



7



18



26



25



36Between one and two years


17



17



17



8



7



7



25



24



24Between two and three years


17



16



16



7



7



6



24



23



22Between three and four years


17



16



16



7



6



6



24



22



22Between four and five years


-



15



15



7



6



6



7



21



21After five years


-



-



15



48



47



41



48



47



5669



82



97



85



80



84



154



162



181 Total contracted payments disclosed above include commitments of 65
million in relation to schemes reclassified as held for sale. Employer contributions payable in the 2015 financial year including minimum funding payments (expressed using year-end exchange rates for 2014) are estimated at 191 million of which 96 million relates to schemes reclassified as held for sale. Average duration and scheme composition  Eurozone


Britain andNorthern Ireland


Switzerland


United States2014


2013


2012


2014


2013


2012


2014


2013


2012


2014


2013


2012Average duration of defined benefit obligation (years)


16.0



15.9



16.9



17.5



18.1



20.8



16.0



16.0



16.0



12.0



13.3



13.2Allocation of defined benefit obligation by participant:Active plan participants


37%



39%



40%



27%



27%



28%



85%



86%



87%



35%



36%



38%Deferred plan participants


21%



20%



20%



34%



34%



34%



-



-



-



30%



30%



30%Retirees


42%



41%



40%



39%



39%



38%



15%



14%



13%



35%



34%



32%


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28. Share Capital and
Reserves  Equity Share Capital

2014




2013Ordinary
Shares of
0.32 each(i)


Income
Shares of
0.02 each(ii)




Ordinary
Shares of 0.32 each (i)


Income
Shares of 0.02 each (ii)AuthorisedAt 1 January 2014 and 31 December 2014 (m)


320



20





320



20Number of Shares at 1 January 2014 and 31 December 2014 (000s)


1,000,000



1,000,000





1,000,000



1,000,000Allotted, called-up and fully paidAt 1 January (m)


237



14





235



14Issue of scrip shares in lieu of cash dividends (iii)


2



-





2



-At 31 December (m)


239



14





237



14The movement in the number of shares (expressed in 000s) during the financial year was as follows:At 1 January


739,231



739,231





733,821



733,821Issue of scrip shares in lieu of cash dividends (iii)


5,294



5,294





5,410



5,410At 31 December


744,525



744,525





739,231



739,231  (i)
The Ordinary Shares represent 93.68% of the total issued share capital.  (ii)
The Income Shares, which represent 5.85% of the total issued share capital, were created on 29 August 1988 for the express purpose of giving shareholders
the choice of receiving dividends on either their Ordinary Shares or on their Income Shares (by notice of election to the Company). The Income Shares carried a different tax credit to the Ordinary Shares. The creation of the Income Shares was
achieved by the allotment of fully paid Income Shares to each shareholder equal to his/her holding of Ordinary Shares but the shareholder is not entitled to an Income Share certificate, as a certificate for Ordinary Shares is deemed to include an
equal number of Income Shares and a shareholder may only sell, transfer or transmit Income Shares with an equivalent number of Ordinary Shares. Income Shares carry no voting rights. Due to changes in Irish tax legislation since the creation of the
Income Shares, dividends on the Companys shares no longer carry a tax credit. As elections made by shareholders to receive dividends on their holding of Income Shares were no longer relevant, the Articles of Association were amended on
8 May 2002 to cancel such elections. Share schemes The aggregate number of shares which may be committed for issue in respect of any share option scheme, savings-related share option scheme, share
participation scheme, performance share plan or any subsequent option scheme or share plan, may not exceed 10% of the issued ordinary share capital from time to time. Share option schemes Details of share options granted under the
Companys share option schemes and the terms attaching thereto are provided in note 7 to the financial statements and on page 112 of the Directors Remuneration Report.  Number of Shares2014


2013Options exercised during the year (satisfied by the reissue of Treasury Shares)


1,307,406



1,310,187 Share participation schemes As at
31 December 2014, 7,509,125 (2013: 7,386,047) Ordinary Shares had been appropriated to participation schemes. In the financial year ended 31 December 2014, the appropriation of 123,078 shares was satisfied by the reissue of Treasury Shares
(2013: 113,415). The Ordinary Shares appropriated pursuant to these schemes were issued at market value on the dates of appropriation. The shares issued pursuant to these schemes are excluded from the scope of IFRS 2 Share-based Payment and
are hence not factored into the expense computation and the associated disclosures in note 7. Performance Share Plan During the year, 742,604 Ordinary Shares were acquired by the Employee Benefit Trust by way of the reissue of Treasury Shares by CRH plc to satisfy the
release of shares in respect of the 2011 award under the 2006 Performance Share Plan. Restricted Share Plan During 2013, the Employee Benefit Trust purchased 391,250 shares on behalf of CRH plc in respect of awards under the 2013 Restricted Share Plan. There
were no such purchases in 2014. The nominal value of own shares, on which dividends have been waived by the Trustees of the 2013 Restricted Share
Plan, amounted to 0.1 million at 31 December 2014 (2013: 0.1 million). (iii) Issue of scrip shares in lieu of cash dividends: Number of Shares




Price per Share2014


2013


2012




2014


2013


2012May 2014 - Final 2013 dividend (2013: Final 2012 dividend; 2012: Final 2011 dividend)


4,081,636



2,011,165



2,653,368





20.99



17.01



15.40October 2014 - Interim 2014 dividend (2013: Interim 2013 dividend; 2012: Interim 2012 dividend)


1,212,700



3,398,992



3,270,169





17.81



15.79



14.27Total


5,294,336



5,410,157



5,923,537






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##### Table of Contents

28. Share Capital and Reserves|continued  5% Cumulative




7% A CumulativePreference Shares of




Preference Shares ofPreference Share Capital

1.27 each(iv)




1.27 each(v)Number of







Number ofShares 000s


m




Shares 000s


mAuthorisedAt 1 January 2014 and 31 December 2014


150



-





872



1Allotted, called-up and fully paidAt 1 January 2014 and 31 December 2014


50



-





872



1 There was no movement in the number of cumulative preference shares in either the current or the prior year.  (iv)
The holders of the 5% Cumulative Preference Shares are entitled to a fixed cumulative preference dividend at a rate of 5% per annum and priority in a
winding-up to repayment of capital, but have no further right to participate in profits or assets and are not entitled to be present or vote at general meetings unless their dividend is in arrears. Dividends on the 5% Cumulative Preference Shares
are payable half-yearly on 15 April and 15 October in each year. The 5% Cumulative Preference Shares represent 0.03% of the total issued share capital.  (v)
The holders of the 7% A Cumulative Preference Shares are entitled to a fixed cumulative preference dividend at a rate of 7% per annum, and
subject to the rights of the holders of the 5% Cumulative Preference Shares, priority in a winding-up to repayment of capital, but have no further right to participate in profits or assets and are not entitled to be present or vote at general
meetings unless their dividend is in arrears or unless the business of the meeting includes certain matters, which are specified in the Articles of Association. Dividends on the 7% A Cumulative Preference Shares are payable half-yearly
on 5 April and 5 October in each year. The 7% A Cumulative Preference Shares represent 0.44% of the total issued share capital.  Treasury Shares/own shares



2014
m


2013
mAt 1 January




(118
)


(146
)Treasury Shares/own shares reissued




42



34Shares acquired by Employee Benefit Trust (own shares)




-



(6
)At 31 December




(76
)


(118
) As at the balance sheet date, the total number of Treasury Shares held was 3,775,455 (2013: 5,951,104); the nominal value of these shares was 1 million (2013: 2 million). During the year ended 31 December 2014, 1,430,484 (2013: 1,423,602) shares were reissued to satisfy
exercises and appropriations under the Groups share option and share participation schemes and 2,561 (2013: nil) shares were reissued to satisfy deferred share awards. In addition, 742,604 (2013: nil) shares were reissued to the CRH plc
Employee Benefit Trust in connection with the release of the award under the 2006 Performance Share Plan. These reissued Treasury Shares were previously purchased at an average price of 19.40
(2013: 24.08). No Treasury Shares were purchased during 2014 or 2013. Reconciliation of shares issued to net proceeds

2014
m


2013
m


2012
mShares issued at nominal amount:- scrip shares issued in lieu of cash dividends


2



2



2Premium on shares issued


105



86



86Total value of shares issued


107



88



88Issue of scrip shares in lieu of cash dividends (note 11)


(107
)


(88
)


(88
)Net proceeds from issue of shares


-



-



-Share Premium




2014
m


2013
mAt 1 January






4,219



4,133Premium arising on shares issued






105



86At 31 December






4,324



4,219   29. Commitments under Operating and Finance Leases Operating leases Future minimum rentals payable under
non-cancellable operating leases at 31 December are as follows: 2014
m


2013
m


2012
mWithin one year


310



301



270After one year but not more than five years


663



596



653More than five years


417



357



3981,390



1,254



1,321 Total operating lease commitments disclosed above include commitments of
54 million in relation to businesses classified as held for sale. Finance leases Future minimum lease payments under finance leases are not material for the Group.


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30. Business Combinations The principal acquisitions completed during the year ended 31 December 2014 by reportable segment, together with the completion
dates, are detailed below; these transactions entailed the acquisition of an effective 100% stake except where indicated to the contrary: Europe
Heavyside: Denmark: selected assets of a precast concrete business (11 August); Ireland: selected assets of Cemex Ireland (31 August). Europe Distribution:Belgium: Heumatop (24 March), Costermans (2 July) and Van Den Broeck (17 July); France: assets of two
Toute Faire Materiaux branches (1 April); the Netherlands: Hoogeveen branch of Kroon Bouwcenter (9 April). Americas
Materials:Iowa: Shipley Contracting asphalt plant and paving assets (6 June); Kentucky: selected assets of MAC Construction & Excavating (5 November); Maine: Marriner quarry (10 April) and selected assets of
Lane Construction (26 September); Texas: selected assets of Capitol Aggregates (6 May); Virginia: Kendrick reserves (6 August); Washington: asphalt assets of Eucon Corporation in Spokane (15 December); West Virginia:
assets of Yellowstar Materials (7 January). Americas Products:California: assets of Kristar Enterprises (6 January); North
and South Carolina: concrete pipe assets of MC Precast (19 May); Iowa: Thermomass (10 September); Texas: assets of Hope Agri Products (20 February, also Arkansas, Louisiana and Oklahoma) and assets of Ashley Concrete (19 May).  The identifiable net assets acquired, including adjustments to provisional fair values, were as follows:

2014
m


2013
m


2012
mAssetsNon-current assetsProperty, plant and equipment


91



342



253Intangible assets


16



39



65Equity accounted investments


-



2



-Deferred income tax assets


-



-



10Total non-current assets


107



383



328Current assetsInventories


23



41



98Trade and other receivables (i)


20



53



103Cash and cash equivalents


1



11



19Total current assets


44



105



220LiabilitiesTrade and other payables


(17
)


(80
)


(57
)Provisions for liabilities (stated at net present cost)


(1
)


(14
)


(1
)Interest-bearing loans and borrowings and finance leases


(7
)


(44
)


(42
)Current income tax liabilities


-



-



(3
)Deferred income tax liabilities


(2
)


(8
)


(19
)Total liabilities


(27
)


(146
)


(122
)Total identifiable net assets at fair value


124



342



426Goodwill arising on acquisition (ii)


31



169



162Excess of fair value of identifiable net assets over consideration paid (ii)


-



(2
)


-Non-controlling interests*


-



(1
)


-Total consideration


155



508



588Consideration satisfied by:Cash payments


152



347



437Asset exchange (note 4)


-



144



-Deferred consideration (stated at net present cost)


1



4



75Contingent consideration (iii)


2



13



76Total consideration


155



508



588* Measured at the non-controlling interests proportionate share of the acquirees identifiable net assets.Net cash outflow arising on acquisitionCash consideration


152



347



437Less: cash and cash equivalents acquired


(1
)


(11
)


(19
)Total


151



336



418






182      CRH




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##### Table of Contents

30. Business Combinations|continued None of the acquisitions completed during the financial years 2014, 2013 or 2012 were considered sufficiently material to warrant separate disclosure of
the attributable fair values. The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis in respect of certain acquisitions; any amendments to these fair values made during the subsequent
reporting window (within the measurement period imposed by IFRS 3 Business Combinations) will be subject to subsequent disclosure.  (i)
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to 22 million (2013: 57 million; 2012: 106 million). The fair value of these receivables is 20 million
(all of which is expected to be recoverable) (2013: 53 million; 2012: 103 million) and is inclusive of an aggregate allowance for
impairment of 2 million (2013: 4 million; 2012: 3 million).  (ii)
The principal factor contributing to the recognition of goodwill on acquisitions entered into by the Group is the realisation of cost savings and other synergies with existing entities in the Group which do not qualify
for separate recognition as intangible assets. Due to the asset-intensive nature of operations in the Europe Heavyside and Americas Materials business segments, no significant intangible assets are recognised on business combinations in these
segments. 18 million of the goodwill recognised in respect of acquisitions completed in 2014 is expected to be deductible for tax purposes (2013:
49 million). No excess of fair value of identifiable net assets over consideration arose during the year (2013: 2 million; 2012: nil million).  (iii)
The fair value of contingent consideration recognised is 2 million (including adjustments to prior year acquisitions of
1 million). On an undiscounted basis, the corresponding future payments on current year acquisitions for which the Group may be liable range from
nil million to a maximum of 1 million. Acquisition-related costs amounting to 2 million (2013: 2 million; 2012: 4 million) have been included in operating costs in the Consolidated Income Statement (note 2). No contingent liabilities were recognised on the acquisitions completed during the financial year or the prior financial years. The carrying amounts of the assets and liabilities acquired determined in accordance with IFRS before completion of the acquisition, together with the
adjustments made to those carrying values to arrive at the fair values disclosed above, were as follows:  Book
values m


Fair value
adjustments m


Accounting
policy alignments
m


Adjustments
to provisional fair values
m


Fair
value
mNon-current assets


95



11



-



1



107Current assets


45



(3
)


-



2



44Liabilities


(22
)


(2
)


-



(3
)


(27
)Identifiable net assets acquired


118



6



-



-



124Goodwill arising on acquisition (see (ii) above)


38



(5
)


-



(2
)


31Total consideration


156



1



-



(2
)


155The equivalent disclosure for 2013 is as follows:Non-current assets


257



106



-



20



383Current assets


130



(12
)


(2
)


(11
)


105Liabilities


(107
)


(34
)


-



(5
)


(146
)Identifiable net assets acquired


280



60



(2
)


4



342Non-controlling interests


(2
)


1



-



-



(1
)Goodwill arising on acquisition


224



(61
)


2



2



167Total consideration


502



-



-



6



508The equivalent disclosure for 2012 is as follows:Non-current assets


178



155



-



(4
)


329Current assets


217



2



-



-



219Liabilities


(95
)


(19
)


(1
)


(7
)


(122
)Identifiable net assets acquired


300



138



(1
)


(11
)


426Goodwill arising on acquisition


287



(138
)


1



12



162Total consideration


587



-



-



1



588


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##### Table of Contents

LOGO


30. Business Combinations| continued The following table analyses the 21 acquisitions (2013: 25 acquisitions; 2012: 32 acquisitions) by reportable segment
and provides details of the goodwill and consideration figures arising in each of those segments:  Reportable segments

Number of
acquisitions


Goodwill


Consideration2014


2013


2012


2014
m


2013
m


2012
m


2014
m


2013
m


2012
mEurope Heavyside


2



6



2



2



80



25



7



265



58Europe Lightside


-



-



4



-



-



68



-



-



151Europe Distribution


6



3



3



9



10



8



20



15



40Europe


8



9



9



11



90



101



27



280



249Americas Materials


8



9



14



5



19



34



71



76



226Americas Products


5



4



9



17



48



14



59



124



112Americas Distribution


-



3



-



-



8



-



-



22



-Americas


13



16



23



22



75



48



130



222



338Total Group


21



25



32



33



165



149



157



502



587Adjustments to provisional fair values of prior year acquisitions



(2
)


4



13



(2
)


6



1Total














31



169



162



155



508



588 The post-acquisition impact of acquisitions completed during the year on the Groups profit/(loss) for the financial year was as follows:2014
m


2013
m


2012
mRevenue














122



306



270Cost of sales














(89
)


(232
)


(201
)Gross profit














33



74



69Operating costs














(26
)


(63
)


(56
)Group operating profit














7



11



13Profit on disposals














-



-



-Profit before finance costs














7



11



13Finance costs (net)














-



(3
)


(2
)Profit before tax














7



8



11Income tax expense














(2
)


(2
)


(4
)Group profit for the financial year














5



6



7 The revenue and profit/(loss) of the Group for the financial year determined in accordance with IFRS as though the acquisitions effected
during the year had been at the beginning of the year would have been as follows:  Pro-forma 20142014
acquisitions m


CRH Group excluding
2014 acquisitions m


Pro-forma
consolidated Group
m


Pro-forma
2013 mRevenue


182



18,790



18,972



18,159Group profit/(loss) for the financial year


7



579



586



(300
)Pro-forma 20132013
acquisitions m


CRH Group excluding
2013 acquisitions m


Pro-forma
consolidated Group m


Pro-forma
2012 mRevenue


434



17,725



18,159



19,054Group (loss)/profit for the financial year


1



(301
)


(300
)


571 There have been no acquisitions completed subsequent to the balance sheet date which would be individually material to
the Group, thereby requiring disclosure under either IFRS 3 or IAS 10 Events after the Balance Sheet Date. Details of events after the balance sheet date are set out in note 33. Development updates, giving details of acquisitions which do not
require separate disclosure on the grounds of materiality, are typically published in January and July each year.






184      CRH




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##### Table of Contents

31. Related Party Transactions The principal related party relationships requiring disclosure in the Consolidated Financial Statements of the Group under IAS 24 Related Party
Disclosures pertain to: the existence of subsidiaries, joint ventures and associates; transactions with these entities entered into by the Group; and the identification and compensation of key management personnel. Subsidiaries, joint ventures and associates The Consolidated
Financial Statements include the financial statements of the Company (CRH plc, the ultimate parent) and its subsidiaries, joint ventures and associates as documented in the accounting policies on pages 139 to 145. The Groups principal
subsidiaries, joint ventures and associates are disclosed in Exhibit 8 of this Annual Report on Form 20-F. Sales to and purchases from joint ventures
are immaterial in 2014, 2013 and 2012. Loans extended by the Group to joint ventures and associates (see note 15) are included in financial assets. Sales to and purchases from associates during the financial year ended 31 December 2014 amounted
to 33 million (2013: 24 million; 2012: 21 million) and 411 million (2013: 411 million; 2012: 446 million) respectively. Amounts receivable
from and payable to equity accounted investments (arising from the aforementioned sales and purchases transactions) as at the balance sheet date are included as separate line items in notes 17 and 18 to the Consolidated Financial Statements. Terms and conditions of transactions with subsidiaries, joint ventures and associates In general, the transfer pricing policy implemented by the Group across its subsidiaries is market-based. Sales to and purchases from joint ventures and
associates are conducted in the ordinary course of business and on terms equivalent to those that prevail in arms-length transactions. The outstanding balances included in receivables and payables as at the balance sheet date in respect of
transactions with joint ventures and associates are unsecured and settlement arises in cash. No guarantees have been either requested or provided in relation to related party receivables and payables. Loans to joint ventures and associates (as
disclosed in note 15) are extended on normal commercial terms in the ordinary course of business with interest accruing and, in general, paid to the Group at predetermined intervals. Key management personnel For the purposes of the disclosure
requirements of IAS 24, the term key management personnel (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the Company) comprises the Board of Directors which manages the
business and affairs of the Company.  Key management remuneration amounted to:

2014
m


2013
m


2012
mShort-term benefits


9



7



6Post-employment benefits


1



2



2Share-based payments - calculated in accordance with the principles disclosed in note 7


2



2



2Total


12



11



10 Other than these compensation entitlements, there were no other transactions involving key management personnel.   32. Contingent Liabilities On
30 May 2014, CRH announced that the secretariat of the Competition Commission in Switzerland had invited CRHs Swiss subsidiaries BR Bauhandel AG, Gétaz-Miauton SA and Regusci Reco SA, to comment on a proposal to impose sanctions on
the Association of Swiss Wholesalers of the Sanitary Industry and all other major Swiss wholesalers, including CRHs subsidiaries, regarding the pending investigation into the sanitary (bathroom fixtures and fittings) industry in Switzerland.
The secretariat alleges competition law infringements and proposes a total fine of approximately CHF 283 million on all parties, of which approximately CHF 119 million (99 million) is
attributable to CRHs Swiss subsidiaries, based on Swiss turnover. CRH believes that the position of the secretariat is fundamentally
ill-founded and views the proposed fine as unjustified. The Group has made submissions to this effect to the Competition Commission. Any decision of the Competition Commission on this matter is not expected before April 2015. Any decision finding an
infringement can be appealed to the Federal Administrative Tribunal, and ultimately to the Federal Supreme Court. No provision has been made in respect of this proposed fine in the 2014 Consolidated Financial Statements.


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LOGO


33. Events after the
Balance Sheet Date On 1 February 2015, CRH announced that it had made a binding irrevocable offer to acquire certain of the
businesses and assets of Lafarge S.A. (Lafarge) and Holcim Ltd (Holcim and together with Lafarge the Sellers) comprising a global portfolio of assets in the building materials industry (which are complementary to
CRHs footprint) for an enterprise value of 6.5 billion (based on exchange rates at 30 January 2015). The consideration will be paid in a combination of euro, Sterling and Canadian
Dollars. The proposed acquisition constitutes a Class 1 transaction under the UKLA Listing Rules and therefore requires the approval of a simple
majority of CRHs shareholders. An Extraordinary General Meeting (EGM) will be held on 19 March 2015 to seek shareholder approval of the acquisition. If the acquisition is not approved by CRHs shareholders at the EGM, a
termination fee of approximately 158 million in total will be payable by CRH to the Sellers. A termination fee of approximately
158 million will be payable by the Sellers to CRH in either of the following circumstances: 1) if the Sellers do not accept CRHs offer; or 2) if the proposed merger of Lafarge and
Holcim (the Merger) does not proceed to successful completion. The acquisition is also conditional upon: 1) the successful completion of
the Merger; and 2) the completion of certain local reorganisations that need to take place before completion of the acquisition. In addition, CRH has committed to the Sellers that it will take all steps and do all things necessary to obtain
regulatory approvals required in relation to the acquisition. The long stop date for completion of the acquisition is the earlier of: 1) three months following completion of the Merger; or 2) 31 December 2015, but in any case no earlier than
31 August 2015. In connection with the proposed acquisition, CRH completed a placing of 74,039,915 new Ordinary Shares raising gross proceeds of
approximately 1.6 billion, and representing approximately 9.99% of CRHs issued ordinary share capital before the placing. Closing of the placing and admission of the placing shares to the
official lists and to trading on the main markets of the London Stock Exchange and Irish Stock Exchange took place on 5 February 2015. On
1 February 2015, CRH agreed a 6.5 billion senior unsecured bridge loan facility which has subsequently been reduced by 1.6 billion to
reflect the proceeds of the placing and by a further 2.0 billion to reflect other cash balances which are intended to fund the acquisition. The remaining
2.9 billion of the loan facilities are available to be used to complete the debt-funded portion of the proposed acquisition. Subject to certain carve-outs, the facilities contain provisions
requiring mandatory prepayment from disposal proceeds and the proceeds of capital market transactions. Other terms and conditions are otherwise substantially similar to CRHs existing 2.5
billion revolving credit facility dated 11 June 2014.   34. Supplemental Guarantor Information The following consolidating information presents Condensed Consolidated Balance Sheets as at 31 December 2014 and 2013 and Condensed Consolidated
Income Statements and Condensed Consolidated Cash Flows for the years ended 31 December 2014, 2013 and 2012 of the Company and CRH America, Inc. as required by Article 3-10(c) of Regulation S-X. This information is prepared in accordance with
IFRS with the exception that the subsidiaries are accounted for as investments under the equity method rather than being consolidated. CRH America, Inc. is 100% owned by the company. The Guarantees of the Guarantor are full and unconditional. CRH America Inc. (the Issuer) has the following notes which are fully and unconditionally guaranteed by CRH plc (the Guarantor): US$350 million 4.125% Notes due 2016  listed on the New York Stock Exchange US$1,250 million 6.000% Notes due 2016  listed on the New York Stock Exchange US$650 million 8.125% Notes due 2018  listed on the New York Stock Exchange US$400 million 5.75% Notes due 2021  listed on the New York Stock Exchange US$300 million 6.40% Notes due 2033  listed on the Irish Stock Exchange






186      CRH




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##### Table of Contents

34. Supplemental Guarantor Information|continued Supplemental Condensed Consolidated Balance Sheet as at 31 December 2014  Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH and    subsidiariesmASSETSNon-current assetsProperty, plant and equipment


-



-



7,422



-



7,422Intangible assets


-



-



4,173



-



4,173Subsidiaries


4,239



218



1,682



(6,139
)


-Investments accounted for using the equity method


-



-



1,329



-



1,329Advances to subsidiaries and parent undertakings


-



3,923



-



(3,923
)


-Other financial assets


-



-



23



-



23Other receivables


-



-



85



-



85Derivative financial instruments


-



48



39



-



87Deferred income tax assets


-



-



171



-



171Total non-current assets


4,239



4,189



14,924



(10,062
)


13,290Current assetsInventories


-



-



2,260



-



2,260Trade and other receivables


-



10



2,634



-



2,644Advances to subsidiaries and parent undertakings


5,532



-



1,003



(6,535
)


-Current income tax recoverable


-



-



15



-



15Derivative financial instruments


-



-



15



-



15Cash and cash equivalents


1,411



25



1,826



-



3,262Assets held for sale


-



-



531



-



531Total current assets


6,943



35



8,284



(6,535
)


8,727Total assets


11,182



4,224



23,208



(16,597
)


22,017EQUITYCapital and reserves attributable to the Companys equity holders


10,177



1,606



4,533



(6,139
)


10,177Non-controlling interests


-



-



21



-



21Total equity


10,177



1,606



4,554



(6,139
)


10,198LIABILITIESNon-current liabilitiesInterest-bearing loans and borrowings


-



2,518



2,901



-



5,419Derivative financial instruments


-



-



3



-



3Deferred income tax liabilities


-



-



1,305



-



1,305Other payables


-



-



257



-



257Advances from subsidiary and parent undertakings


-



-



3,923



(3,923
)


-Retirement benefit obligations


-



-



711



-



711Provisions for liabilities


-



-



257



-



257Total non-current liabilities


-



2,518



9,357



(3,923
)


7,952Current liabilitiesTrade and other payables


-



54



2,840



-



2,894Advances from subsidiary and parent undertakings


1,003



-



5,532



(6,535
)


-Current income tax liabilities


-



-



154



-



154Interest-bearing loans and borrowings


2



46



399



-



447Derivative financial instruments


-



-



20



-



20Provisions for liabilities


-



-



139



-



139Liabilities associated with assets classified as held for sale


-



-



213



-



213Total current liabilities


1,005



100



9,297



(6,535
)


3,867Total liabilities


1,005



2,618



18,654



(10,458
)


11,819Total equity and liabilities


11,182



4,224



23,208



(16,597
)


22,017


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##### Table of Contents

LOGO


34. Supplemental Guarantor
Information|continued Supplemental Condensed Consolidated Balance Sheet as at 31 December 2013  Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH and    subsidiariesmASSETSNon-current assetsProperty, plant and equipment


-



-



7,539



-



7,539Intangible assets


-



-



3,911



-



3,911Subsidiaries


4,603



183



1,682



(6,468
)


-Investments accounted for using the equity method


-



-



1,340



-



1,340Advances to subsidiaries and parent undertakings


-



3,469



-



(3,469
)


-Other financial assets


-



-



23



-



23Other receivables


-



-



93



-



93Derivative financial instruments


-



58



5



-



63Deferred income tax assets


-



-



107



-



107Total non-current assets


4,603



3,710



14,700



(9,937
)


13,076Current assetsInventories


-



-



2,254



-



2,254Trade and other receivables


-



9



2,507



-



2,516Advances to subsidiaries and parent undertakings


6,394



-



1,453



(7,847
)


-Current income tax recoverable


-



-



26



-



26Derivative financial instruments


-



-



17



-



17Cash and cash equivalents


175



174



2,191



-



2,540Total current assets


6,569



183



8,448



(7,847
)


7,353Total assets


11,172



3,893



23,148



(17,784
)


20,429EQUITYCapital and reserves attributable to the Companys equity holders


9,662



1,413



5,055



(6,468
)


9,662Non-controlling interests


-



-



24



-



24Total equity


9,662



1,413



5,079



(6,468
)


9,686LIABILITIESNon-current liabilitiesInterest-bearing loans and borrowings


-



2,279



2,300



-



4,579Derivative financial instruments


-



-



34



-



34Deferred income tax liabilities


-



-



1,166



-



1,166Other payables


-



-



289



-



289Advances from subsidiary and parent undertakings


-



-



3,469



(3,469
)


-Retirement benefit obligations


-



-



410



-



410Provisions for liabilities


-



-



231



-



231Total non-current liabilities


-



2,279



7,899



(3,469
)


6,709Current liabilitiesTrade and other payables


-



54



2,700



-



2,754Advances from subsidiary and parent undertakings


1,453



-



6,394



(7,847
)


-Current income tax liabilities


-



-



151



-



151Interest-bearing loans and borrowings


57



147



757



-



961Derivative financial instruments


-



-



19



-



19Provisions for liabilities


-



-



149



-



149Total current liabilities


1,510



201



10,170



(7,847
)


4,034Total liabilities


1,510



2,480



18,069



(11,316
)


10,743Total equity and liabilities


11,172



3,893



23,148



(17,784
)


20,429






188      CRH




---

##### Table of Contents

34. Supplemental Guarantor Information| continued Supplemental Condensed Consolidated Income Statement  Year ended 31 December 2014Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH andsubsidiariesmRevenue


-



-



18,912



-



18,912Cost of sales


-



-



(13,427
)


-



(13,427
)Gross profit


-



-



5,485



-



5,485Operating income/(costs)


1,208



-



(5,776
)


-



(4,568
)Group operating profit/(loss)


1,208



-



(291
)


-



917Profit on disposals


-



-



77



-



77Profit/(loss) before finance costs


1,208



-



(214
)


-



994Finance costs


-



(211
)


(262
)


219



(254
)Finance income


-



219



8



(219
)


8Other financial expense


-



-



(42
)


-



(42
)Share of subsidiaries (loss)/profit before tax


(504
)


35



-



469



-Share of equity accounted investments profit


55



-



55



(55
)


55Profit/(loss) before tax


759



43



(455
)


414



761Income tax expense


(177
)


(17
)


(160
)


177



(177
)Group profit/(loss) for the financial year


582



26



(615
)


591



584Profit/(loss) attributable to:Equity holders of the Company


582



26



(617
)


591



582Non-controlling interests


-



-



2



-



2Group profit/(loss) for the financial year


582



26



(615
)


591



584Supplemental Condensed Consolidated Statement of Comprehensive IncomeGroup profit for the financial year


582



26



(615
)


591



584Other comprehensive incomeItems that may be reclassified to profit or loss in subsequent years:Currency translation effects


599



167



432



(599
)


599Losses relating to cash flow hedges


(6
)


-



(6
)


6



(6
)593



167



426



(593
)


593Items that will not be reclassified to profit or loss in subsequent years:Remeasurement of retirement benefit obligations


(414
)


-



(414
)


414



(414
)Tax on items recognised directly within other comprehensive income


69



-



69



(69
)


69(345
)


-



(345
)


345



(345
)Total other comprehensive income for the financial year


248



167



81



(248
)


248Total comprehensive income for the financial year


830



193



(534
)


343



832Attributable to:Equity holders of the Company


830



193



(536
)


343



830Non-controlling interests


-



-



2



-



2Total comprehensive income for the financial year


830



193



(534
)


343



832


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##### Table of Contents

LOGO


34. Supplemental Guarantor
Information| continued Supplemental Condensed Consolidated Income Statement  Year ended 31 December 2013Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH andsubsidiariesmRevenue


-



-



18,031



-



18,031Cost of sales


-



-



(13,153
)


-



(13,153
)Gross profit


-



-



4,878



-



4,878Operating income/(costs)


3



-



(4,781
)


-



(4,778
)Group operating profit


3



-



97



-



100Profit on disposals


-



-



26



-



26Profit before finance costs


3



-



123



-



126Finance costs


-



(242
)


(270
)


250



(262
)Finance income


-



250



13



(250
)


13Other financial expense


-



-



(48
)


-



(48
)Share of subsidiaries (loss)/profit before tax


(175
)


33



-



142



-Share of equity accounted investments loss


(44
)


-



(44
)


44



(44
)(Loss)/profit before tax


(216
)


41



(226
)


186



(215
)Income tax expense


(80
)


(16
)


(64
)


80



(80
)Group (loss)/profit for the financial year


(296
)


25



(290
)


266



(295
)(Loss)/profit attributable to:Equity holders of the Company


(296
)


25



(291
)


266



(296
)Non-controlling interests


-



-



1



-



1Group (loss)/profit for the financial year


(296
)


25



(290
)


266



(295
)Supplemental Condensed Consolidated Statement of Comprehensive IncomeGroup (loss)/profit for the financial year


(296
)


25



(290
)


266



(295
)Other comprehensive incomeItems that may be reclassified to profit or loss in subsequent years:Currency translation effects


(373
)


(57
)


(316
)


373



(373
)Losses relating to cash flow hedges


(2
)


-



(2
)


2



(2
)(375
)


(57
)


(318
)


375



(375
)Items that will not be reclassified to profit or loss in subsequent years:Remeasurement of retirement benefit obligations


162



-



162



(162
)


162Tax on items recognised directly within other comprehensive income


(43
)


-



(43
)


43



(43
)119



-



119



(119
)


119Total other comprehensive income for the financial year


(256
)


(57
)


(199
)


256



(256
)Total comprehensive income for the financial year


(552
)


(32
)


(489
)


522



(551
)Attributable to:Equity holders of the Company


(552
)


(32
)


(490
)


522



(552
)Non-controlling interests


-



-



1



-



1Total comprehensive income for the financial year


(552
)


(32
)


(489
)


522



(551
)






190      CRH




---

##### Table of Contents

34. Supplemental Guarantor Information| continued Supplemental Condensed Consolidated Income Statement  Year ended 31 December 2012Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH andsubsidiariesmRevenue


-



-



18,084



-



18,084Cost of sales


-



-



(13,018
)


-



(13,018
)Gross profit


-



-



5,066



-



5,066Operating income/(costs)


1,004



-



(5,265
)


-



(4,261
)Group operating profit/(loss)


1,004



-



(199
)


-



805Profit on disposals


2



-



228



-



230Profit before finance costs


1,006



-



29



-



1,035Finance costs


-



(205
)


(279
)


213



(271
)Finance income


-



213



15



(213
)


15Other financial expense


-



-



(49
)


-



(49
)Share of subsidiaries (loss)/profit before tax


(278
)


28



-



250



-Share of equity accounted investments loss


(84
)


-



(84
)


84



(84
)Profit/(loss) before tax


644



36



(368
)


334



646Income tax expense


(106
)


(14
)


(92
)


106



(106
)Group profit/(loss) for the financial year


538



22



(460
)


440



540Profit/(loss) attributable to:Equity holders of the Company


538



22



(462
)


440



538Non-controlling interests


-



-



2



-



2Group profit/(loss) for the financial year


538



22



(460
)


440



540Supplemental Condensed Consolidated Statement of Comprehensive IncomeGroup profit/(loss) for the financial year


538



22



(460
)


440



540Other comprehensive incomeItems that may be reclassified to profit or loss in subsequent years:Currency translation effects


(51
)


(26
)


(25
)


51



(51
)Gains relating to cash flow hedges


1



-



1



(1
)


1(50
)


(26
)


(24
)


50



(50
)Items that will not be reclassified to profit or loss in subsequent years:Remeasurement of retirement benefit obligations


(146
)


-



(146
)


146



(146
)Tax on items recognised directly within other comprehensive income


23



-



23



(23
)


23(123
)


-



(123
)


123



(123
)Total other comprehensive income for the financial year


(173
)


(26
)


(147
)


173



(173
)Total comprehensive income for the financial year


365



(4
)


(607
)


613



367Attributable to:Equity holders of the Company


365



(4
)


(608
)


613



366Non-controlling interests


-



-



1



-



1Total comprehensive income for the financial year


365



(4
)


(607
)


613



367


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| |  | CRH      191



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##### Table of Contents

LOGO


34. Supplemental Guarantor
Information| continued Supplemental Condensed Consolidated Statement of Cash Flow  Year ended 31 December 2014Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH andsubsidiariesmCash flows from operating activitiesProfit/(loss) before tax


759



43



(455
)


414



761Finance costs (net)


-



(8
)


296



-



288Group share of subsidiaries loss/(profit) before tax


504



(35
)


-



(469
)


-Share of equity accounted investments result


(55
)


-



(55
)


55



(55
)Profit on disposals


-



-



(77
)


-



(77
)Group operating profit/(loss)


1,208



-



(291
)


-



917Depreciation charge


-



-



631



-



631Amortisation of intangible assets


-



-



44



-



44Impairment charge


-



-



49







49Share-based payment expense


-



-



16



-



16Other (primarily pension payments)


-



-



(66
)


-



(66
)Net movement on working capital and provisions


-



(7
)


42



-



35Cash generated from operations


1,208



(7
)


425



-



1,626Interest paid (including finance leases)


-



(211
)


(270
)


219



(262
)Corporation tax paid


-



(17
)


(110
)


-



(127
)Net cash inflow/(outflow) from operating activities


1,208



(235
)


45



219



1,237Cash flows from investing activitiesProceeds from disposals


-



-



345



-



345Interest received


-



219



8



(219
)


8Dividends received from equity accounted investments


-



-



30



-



30Purchase of property, plant and equipment


-



-



(435
)


-



(435
)Advances from subsidiary and parent undertakings


414



17



-



(431
)


-Acquisition of subsidiaries (net of cash acquired)


-



-



(151
)


-



(151
)Other investments and advances


-



-



(3
)


-



(3
)Deferred and contingent acquisition consideration paid


-



-



(26
)


-



(26
)Net cash inflow/(outflow) from investing activities


414



236



(232
)


(650
)


(232
)Cash flows from financing activitiesProceeds from exercise of share options


22



-



-



-



22Acquisition of non-controlling interests


-



-



(1
)


-



(1
)Advances to subsidiary and parent undertakings


-



-



(431
)


431



-Increase in interest-bearing loans, borrowings and finance leases


-



-



901



-



901Net cash flow arising from derivative financial instruments


-



16



(27
)


-



(11
)Repayment of interest-bearing loans, borrowings and finance leases


(55
)


(175
)


(704
)


-



(934
)Dividends paid to equity holders of the Company


(353
)


-



-



-



(353
)Dividends paid to non-controlling interests


-



-



(4
)


-



(4
)Net cash outflow from financing activities


(386
)


(159
)


(266
)


431



(380
)Increase/(decrease) in cash and cash equivalents


1,236



(158
)


(453
)


-



625Reconciliation of opening to closing cash and cash equivalentsCash and cash equivalents at 1 January


175



174



2,191



-



2,540Translation adjustment


-



9



121



-



130Increase/(decrease) in cash and cash equivalents


1,236



(158
)


(453
)


-



625Cash and cash equivalents at 31 December


1,411



25



1,859



-



3,295






192      CRH




---

##### Table of Contents

34. Supplemental Guarantor Information| continued Supplemental Condensed Consolidated Statement of Cash Flow  Year ended 31 December 2013Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH andsubsidiariesmCash flows from operating activities(Loss)/profit before tax


(216
)


41



(226
)


186



(215
)Finance costs (net)


-



(8
)


305



-



297Group share of subsidiaries loss/(profit) before tax


175



(33
)


-



(142
)


-Share of equity accounted investments result


44



-



44



(44
)


44Profit on disposals


-



-



(26
)


-



(26
)Group operating profit


3



-



97



-



100Depreciation charge


-



-



671



-



671Amortisation of intangible assets


-



-



54



-



54Impairment charge


-



-



650



-



650Share-based payment expense


-



-



15



-



15Other (primarily pension payments)


-



-



(96
)


-



(96
)Net movement on working capital and provisions


-



1



76



-



77Cash generated from operations


3



1



1,467



-



1,471Interest paid (including finance leases)


-



(242
)


(277
)


250



(269
)Corporation tax paid


-



(16
)


(94
)


-



(110
)Net cash inflow/(outflow) from operating activities


3



(257
)


1,096



250



1,092Cash flows from investing activitiesProceeds from disposals


-



-



122



-



122Interest received


-



250



13



(250
)


13Dividends received from equity accounted investments


-



-



33



-



33Purchase of property, plant and equipment


-



-



(497
)


-



(497
)Advances from subsidiary and parent undertakings


299



179



-



(478
)


-Acquisition of subsidiaries (net of cash acquired)


-



-



(336
)


-



(336
)Other investments and advances


-



-



(78
)


-



(78
)Deferred and contingent acquisition consideration paid


-



-



(105
)


-



(105
)Net cash inflow/(outflow) from investing activities


299



429



(848
)


(728
)


(848
)Cash flows from financing activitiesProceeds from exercise of share options


19



-



-



-



19Acquisition of non-controlling interests


-



-



(13
)


-



(13
)Advances to subsidiary and parent undertakings


-



-



(478
)


478



-Increase in interest-bearing loans, borrowings and finance leases


55



-



1,436



-



1,491Net cash flow arising from derivative financial instruments


-



43



21



-



64Treasury/own shares purchased


(6
)


-



-



-



(6
)Repayment of interest-bearing loans, borrowings and finance leases


-



(601
)


15



-



(586
)Dividends paid to equity holders of the Company


(367
)


-



-



-



(367
)Dividends paid to non-controlling interests


-



-



(1
)


-



(1
)Net cash (outflow)/inflow from financing activities


(299
)


(558
)


980



478



601Increase/(decrease) in cash and cash equivalents


3



(386
)


1,228



-



845Reconciliation of opening to closing cash and cash equivalentsCash and cash equivalents at 1 January


172



570



1,005



-



1,747Translation adjustment


-



(10
)


(42
)


-



(52
)Increase/(decrease) in cash and cash equivalents


3



(386
)


1,228



-



845Cash and cash equivalents at 31 December


175



174



2,191



-



2,540


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##### Table of Contents

LOGO


34. Supplemental Guarantor
Information| continued Supplemental Condensed Consolidated Statement of Cash Flow  Year ended 31 December 2012Guarantorm


Issuerm


Non-Guarantorsubsidiariesm


Eliminate andreclassify
m


CRH andsubsidiariesmCash flows from operating activitiesProfit before tax


644



36



(368
)


334



646Finance costs (net)


-



(8
)


313



-



305Group share of subsidiaries loss/(profit) before tax


278



(28
)


-



(250
)


-Share of equity accounted investments result


84



-



84



(84
)


84Profit on disposals


(2
)


-



(228
)


-



(230
)Group operating profit/(loss)


1,004



-



(199
)


-



805Depreciation charge


-



-



686



-



686Amortisation of intangible assets


-



-



44



-



44Impairment charge


-



-



28



-



28Share-based payment expense


-



-



14



-



14Other (primarily pension payments)


-



-



(152
)


-



(152
)Net movement on working capital and provisions


-



3



(61
)


-



(58
)Cash generated from operations


1,004



3



360



-



1,367Interest paid (including finance leases)


-



(205
)


(266
)


213



(258
)Corporation tax paid


(1
)


(14
)


(109
)


-



(124
)Net cash inflow/(outflow) from operating activities


1,003



(216
)


(15
)


213



985Cash flows from investing activitiesProceeds from disposals (net of cash disposed)


2



-



780



-



782Interest received


-



213



16



(213
)


16Dividends received from equity accounted investments


-



-



35



-



35Purchase of property, plant and equipment


-



-



(544
)


-



(544
)Advances to subsidiary and parent undertakings


(653
)


(42
)


-



695



-Acquisition of subsidiaries (net of cash acquired)


-



-



(418
)


-



(418
)Other investments and advances


-



-



(56
)


-



(56
)Deferred and contingent acquisition consideration paid


-



-



(30
)


-



(30
)Net cash (outflow)/inflow from investing activities


(651
)


171



(217
)


482



(215
)Cash flows from financing activitiesProceeds from exercise of share options


16



-



-



-



16Acquisition of non-controlling interests


-



-



(2
)


-



(2
)Advances from subsidiary and parent undertakings


-



-



695



(695
)


-Increase in interest-bearing loans, borrowings and finance leases


-



-



487



-



487Net cash flow arising from derivative financial instruments


-



25



(12
)


-



13Repayment of interest-bearing loans, borrowings and finance leases


(1
)


(363
)


(30
)


-



(394
)Dividends paid to equity holders of the Company


(362
)


-



-



-



(362
)Dividends paid to non-controlling interests


-



-



(4
)


-



(4
)Net cash (outflow)/inflow from financing activities


(347
)


(338
)


1,134



(695
)


(246
)Increase/(decrease) in cash and cash equivalents


5



(383
)


902



-



524Reconciliation of opening to closing cash and cash equivalentsCash and cash equivalents at 1 January


167



962



117



-



1,246Translation adjustment


-



(9
)


(14
)


-



(23
)Increase/(decrease) in cash and cash equivalents


5



(383
)


902



-



524Cash and cash equivalents at 31 December


172



570



1,005



-



1,747






194      CRH




---

##### Table of Contents

Shareholder InformationPageStock Exchange Listings


196Ownership of Ordinary Shares


197Major Shareholders


197Dividends


198Share Plans


199American Depositary Shares


200Taxation


202Memorandum and Articles of Association


204Financial Calendar


206Electronic Communications


206Principal Accountant Fees and Services


207Documents on Display


207


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| |  |             
| |  | ------------
| |  | CRH      195



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##### Table of Contents

LOGO


Shareholder Information Stock Exchange Listings CRH has a premium listing on the London Stock Exchange and a secondary listing on the Irish Stock Exchange. American Depositary Shares (ADSs), each representing one Ordinary Share, are listed on the New York Stock Exchange (NYSE). The
ADSs are evidenced by American Depositary Receipts (ADRs) issued by The Bank of New York Mellon (the Depositary) as Depositary under an Amended and Restated Deposit Agreement dated 28 November 2006. Each ADS represents
one Ordinary Share of the Company. The ticker symbol for the ADSs on the NYSE is CRH. The following table sets forth, for the periods indicated, the
reported high and low closing sales prices for the Ordinary Shares in euro on the Irish Stock Exchange from 2010 through 6 March 2015 and in Sterling on the London Stock Exchange from 6 December 2011 (as the London Stock Exchange became
CRHs sole premium listing on that date) through 6 March 2015. The table also sets forth, for the same periods, the high and low closing sale prices for the ADSs on the NYSE.  Sterling per




Euro per




US DollarsOrdinary Share




Ordinary Share




per ADSHigh



Low





High



Low





High



LowCalendar Year2010












22.00



11.51





$29.43



$14.772011


£12.80(i
)


£11.09(i
)




17.00(ii
)


10.50(ii
)




$24.95



$14.382012


£14.09



£10.52





16.79



12.99





$22.20



$16.352013


£16.17



£12.15





19.30



14.68





$26.26



$19.562014


£17.88



£12.66





21.82



15.86





$29.72



$20.472013First Quarter


£15.40



£12.15





17.86



14.68





$23.05



$19.56Second Quarter


£14.77



£12.59





17.36



14.81





$22.24



$19.62Third Quarter


£15.27



£12.92





18.13



15.19





$24.60



$19.86Fourth Quarter


£16.17



£14.19





19.30



16.85





$26.26



$23.262014First Quarter


£17.88



£15.39





21.82



18.47





$29.72



$25.32Second Quarter


£17.75



£15.01





21.40



18.74





$29.71



$25.85Third Quarter


£15.55



£13.43





19.58



16.81





$26.77



$22.71Fourth Quarter


£15.79



£12.66





20.04



15.86





$24.52



$20.47Recent MonthsSeptember 2014


£14.88



£13.85





18.58



17.47





$24.20



$22.81October 2014


£14.02



£12.66





18.00



15.86





$22.69



$20.47November 2014


£15.11



£13.52





19.00



17.00





$23.45



$21.45December 2014


£15.79



£14.21





20.04



17.85





$24.52



$22.17January 2015


£16.80



£14.71





22.35



18.73





$25.06



$22.51February 2015


£18.47



£17.18





25.32



22.97





$28.47



$25.80March 2015(through 6 March 2015)


£18.13



£17.70





24.98



24.40





$28.20



$27.02  (i)
The Sterling high and low closing prices displayed for 2011, based on the London Stock Exchange, are only for the period from 6 December 2011, from
which date it became the sole premium listing.  (ii)
The euro high and low closing prices displayed for 2011 are for the entire period shown and based on the Irish Stock Exchange prices. For further information on CRH shares see note 28 to the Consolidated Financial Statements.








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Shareholder Information|continued Ownership of Ordinary Shares Shareholdings as at 31 December 2014  Geographic Location1

Number of
shares held 000s


% of totalNorth America


309,829



41.61United Kingdom


185,851



24.96Europe/Other


125,413



16.85Retail


87,458



11.75Ireland


32,198



4.32Treasury


3,776



0.51744,525



100  1
This represents a best estimate of the number of shares controlled by fund managers resident in the geographic regions indicated. Private
shareholders are classified as retail above.  Holdings

Number of
Shareholders


% of total


Number of
shares held 000s


% of total1 - 1,000


14,973



60.13



4,989



0.671,001 - 10,000


8,375



33.63



24,431



3.2810,001 - 100,000


1,152



4.63



31,838



4.28100,001 - 1,000,000


310



1.24



109,383



14.69Over 1,000,000


93



0.37



573,884



77.0824,903



100



744,525



100 Major Shareholders The Company is not owned or controlled directly or indirectly by any government or by any corporation or by any other natural or legal person severally or
jointly. The major shareholders do not have any special voting rights. As at 6 March 2015, the Company had received notification of the following interests in its Ordinary share capital:  6 March 2015


31 December 2014


31 December 2013


31 December 2012Name

Holding/Voting
Rights


%
at period end


Holding/Voting
Rights


%
at year end


Holding/Voting
Rights


%
at year end


Holding/Voting
Rights


%
at year endBlackRock, Inc.1


67,412,664



8.26



40,681,647



5.49



43,857,751



5.98



28,961,677



3.98The Capital Group Companies, Inc. (CGC)


-



-



-



-



-



-



35,763,581



4.92Harbor International Fund


21,853,816



2.68



21,999,275



2.96



21,999,275



3.00



21,999,275



3.02Legal & General Group Plc


-



-



-



-



-



-



22,496,003



3.09Norges Bank (The Central Bank of Norway)


-



-



-



-



-



-



21,543,277



2.96Templeton Global Advisors Limited


21,503,171



2.63



21,503,171



2.90



21,503,171



2.93



21,503,171



2.96UBS AG


26,380,604



3.23



26,380,604



3.56



26,380,604



3.59



26,380,604



3.63  1
BlackRock, Inc. has advised that its interests in CRH shares arise by reason of discretionary investment management arrangements entered into by it or its
subsidiaries.


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Shareholder Information|continued Purchases of Equity Securities by the Issuer and Affiliated Persons There were no purchases of equity securities by the issuer and/or affiliated persons during the course of 2014. Dividends The Company has paid dividends on its Ordinary Shares in respect of each fiscal year since the formation of the Group in 1970. Dividends are paid to
shareholders as of record dates, which are determined by the Board of Directors. An interim dividend is normally declared by the Board of Directors in August of each year and is generally paid in October. A final dividend is normally recommended by
the Board of Directors following the end of the fiscal year to which it relates and, if approved by the shareholders at an Annual General Meeting, is generally paid in May of that year. Each ordinary shareholder in CRH holds an Income Share which is tied to each Ordinary Share and may only be transferred or otherwise dealt with in
conjunction with that Ordinary Share. The payment of future cash dividends will be dependent upon future earnings, the financial condition of the Group and other factors. The following table sets forth the amounts of interim, final and total dividends in euro cent per Ordinary Share declared in respect of each fiscal year
indicated. Each amount represents the actual dividend payable. Solely for the convenience of the reader, these dividends have been translated into US cents per American Depositary Share (ADS) (each representing one Ordinary Share) using
the FRB Noon Buying Rate on the date of payment. The final dividend, if approved at the forthcoming Annual General Meeting of shareholders to be held on 7 May 2015, will be paid on 12 May 2015 and will bring the full year dividend for 2015
to 62.50 cent. The proposed final dividend has been translated using the FRB Noon Buying Rate on 6 March 2015.  Euro cent




Translated intoper ordinary share




US cents per ADSYears ended 31 December

Interim


Final


Total




Interim


Final


Total2010


18.50



44.00



62.50





25.64



62.23



87.872011


18.50



44.00



62.50





25.43



58.36



83.792012


18.50



44.00



62.50





24.09



57.18



81.272013


18.50



44.00



62.50





25.52



60.54



86.062014


18.50



44.00a



62.50





23.45



47.76a



71.21  a
Proposed Dividend
Withholding Tax (DWT) must be deducted from dividends paid by an Irish resident company, unless a shareholder is entitled to an exemption and has submitted a properly completed exemption form to the Companys Registrars, Capita Asset Services
(the Registrars). DWT applies to dividends paid by way of cash or by way of shares under a scrip dividend scheme and is deducted at the standard rate of Income Tax (currently 20%). Non-resident shareholders and certain Irish companies,
trusts, pension schemes, investment undertakings and charities may be entitled to claim exemption from DWT. Copies of the exemption form may be obtained from the Registrars. Shareholders should note that DWT will be deducted from dividends in cases
where a properly completed form has not been received by the record date for a dividend. Individuals who are resident in the Republic of Ireland for tax purposes are not entitled to an exemption. Shareholders who wish to have their dividend paid direct to a bank account, by electronic funds transfer, should complete the required dividend mandate
form and submit it to the Registrars. A copy of the required form can be obtained from the shareholder services section of CRH website, www.crh.com, under Equity Investors. Alternatively, shareholders can contact the Registrars to obtain
a mandate form (see contact details on page 207). Tax vouchers will be sent to the shareholders registered address under this arrangement. Dividends are generally paid in euro. However, in order to avoid costs to shareholders, dividends are paid in Sterling and US Dollars to shareholders
whose shares are not held in the CREST system (see page 199) and whose address, according to the Share Register, is in the UK and the United States respectively, unless they require otherwise. Dividends in respect of 7% A Cumulative Preference Shares are paid half-yearly on 5 April and 5 October. Dividends in respect of 5% Cumulative Preference Shares are paid half-yearly on 15 April and 15 October. Shareholders have the option of taking their dividend in the form of shares under the Companys Scrip Dividend Scheme.








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Shareholder Information|continued CREST Transfer of the
Companys shares takes place through the CREST system. Shareholders have the choice of holding their shares in electronic form or in the form of share certificates. Where shares are held in CREST, dividends are automatically paid in euro unless a currency election is made. CREST members should use the facility in
CREST to make currency elections. Such elections must be made in respect of entire holdings as partial elections are not permissible. Share Plans The Group operates share option schemes, performance share plans, share participation schemes and savings-related share
option schemes (the Schemes) for eligible employees in all regions where the regulations permit the operation of such schemes. A brief description of the Schemes is outlined below. Shares issued (whether by way of the allotment of new
shares or the reissue of Treasury Shares) in connection with the Schemes rank pari passu in all respects with the Ordinary and Income shares of the Company. 2000 Share Option Schemes At the Annual General Meeting held on 3 May 2000, shareholders approved the adoption of Share Option Schemes (the 2000 Schemes) to
replace schemes which were approved in May 1990. The 2000 Schemes were replaced by new schemes in May 2010 (see below). Details of the performance
criteria applicable to basic tier and second tier options granted under the 2000 Schemes in the ten years following the Adoption Date are contained in the Directors Remuneration Report in table 39 on page 119. Options may be exercised not later than ten years from the date of grant of the option, and not earlier than the expiration of three years from the date
of grant for the basic tier and five years for the second tier. Benefits under the schemes are not pensionable. 2010 Share
Option Schemes At the Annual General Meeting held on 5 May 2010, shareholders approved the adoption of new share option schemes to
replace the schemes which were approved in May 2000 (see above). Following the approval by shareholders of the 2014 Performance Share Plan (see below), no further awards will be granted under the 2010 Share Option Schemes (the 2010
Schemes). Consequently, the last award under the 2010 Schemes was made in 2013. The 2010 Schemes are based on one tier of options with a single
vesting test. The performance criteria for the 2010 Schemes are EPS-based. Vesting will only occur once an initial performance target has been reached and, thereafter, will be dependent on performance. In considering the level of vesting based on
EPS performance, the Remuneration Committee will also consider the overall results of the Group. Please refer to the Directors Remuneration Report in table 32 on page 116 in relation to the performance criteria for the 2010 Schemes. Subject to the achievement of the EPS performance criteria, options may be exercised not later than ten years from the date of grant of the option, and
not earlier than the expiration of three years from the date of grant. Benefits under the schemes are not pensionable. 2000
Savings-related Share Option Schemes At the Annual General Meeting held on 3 May 2000, shareholders approved the adoption of
savings-related share option schemes. CRH Group schemes were subsequently established in the Republic of Ireland and the United Kingdom (the 2000 Savings-related Share Option Schemes), under which eligible subsidiary companies of the
Group were nominated as participating subsidiaries. No further options will be granted under the 2000 Savings-related Share Option Schemes as those schemes were replaced by new savings-related share option schemes in May 2010 (see below). At 6 March 2015, 2,158,570 Ordinary Shares have been issued1 pursuant to the 2000
Savings-related Share Option Schemes. 2010 Savings-related Share Option Schemes At the Annual General Meeting held on 5 May 2010, shareholders approved the adoption of savings-related share option schemes (the 2010
Savings-related Share Option Scheme) to replace the 2000 Savings-related Share Option Schemes. All employees of a participating subsidiary in
the Republic of Ireland or United Kingdom, who have satisfied a required qualifying period, are invited to participate in this scheme. Eligible
employees who wish to participate in the scheme enter into a savings contract with a nominated savings institution, for a three or a five year period, to save a maximum of 500 or Stg£500,
as appropriate, per month.  1
Whether by way of the allotment of new shares or the reissue of Treasury Shares.


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Shareholder Information
| continued At the commencement of each contract period employees are granted an option to acquire Ordinary Shares in the Company at an
option price which is equal to the amount proposed to be saved plus the bonus payable by the nominated savings institution at the end of the savings period. The price payable for each Ordinary Share under an option will be not less than the higher
of par or 75% (or in the case of the UK scheme 80%) of the market value of a share on the day the invitation to apply for the option is issued. On
completion of the savings contract, employees may use the amount saved, together with the bonus earned, to exercise the option. 139,239 Ordinary
Shares have been issued1 pursuant to the 2010 Savings-related Share Option Schemes to date. Share Participation Schemes At the Annual General Meeting on 13 May 1987, the shareholders approved the
establishment of Share Participation Schemes for the Company, its subsidiaries and companies under its control. Directors and employees of the companies who have at least one years service may elect to participate in these Share Participation
Schemes. At 6 March 2015, 7,551,453 Ordinary Shares have been issued1 pursuant to the Share Participation Schemes. 2006 Performance Share Plan See the Directors Remuneration Report on page 114 for more details. The 2006 Performance Share Plan (the 2006 PSP) has been replaced by
the 2014 Performance Share Plan (the 2014 PSP, see below), which was approved by shareholders at the 2014 Annual General Meeting. Consequently, the last award under the 2006 PSP was made in 2013. 2014 Performance Share Plan The 2014 PSP was approved by shareholders at the Annual General Meeting on 7 May 2014. It replaces the 2010 Share Option Schemes and the 2006 PSP.
See the Directors Remuneration Report on page 112 for more details. Restricted Share Plan In 2013, the Board approved the adoption of the 2013 Restricted Share Plan (the 2013 RSP). Under the rules of the 2013 RSP, certain senior
executives (excluding executive Board Directors) received a conditional award of shares in 2013 on a time-vested basis. As (i) executive Directors were excluded from the award and (ii) no shares were allotted or re-issued to satisfy the
awards, the listing rules of the London and Irish Stock Exchanges did not require shareholder approval of the 2013 RSP. During 2013, the Employee
Benefit Trust purchased 391,250 shares on behalf of CRH plc in respect of awards under the 2013 RSP. No further awards will be made under the 2013 RSP. American Depositary Shares Fees and
charges payable by a holder of American Depositary Shares (ADSs) The Depositary collects fees for delivery and surrender of
ADSs directly from investors or from intermediaries acting for them depositing shares or surrendering ADSs for the purpose of withdrawal. The Depositary collects fees for making distributions to investors by deducting those fees from the amounts
distributed or by selling a portion of distributable property to pay the fees. The Depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.   1
Whether by way of the allotment of new shares or the reissue of Treasury Shares.








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Shareholder Information| continued  Persons depositing or withdrawing shares must
pay:

For:$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)

   Issuance of ADSs, including issuances resulting from a distribution of shares or rights or
other property     Cancellation of ADSs
for the purpose of withdrawal, including if the deposit agreement terminates$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) (A fee equivalent to the fee that would be payable if securities distributed had been shares and the shares had been deposited for issuance of ADSs)

   Distribution of deposited securities by the Depositary to ADS registered holdersApplicable Registration or transfer fees

   Transfer and registration of shares on our share register to or from the name of the Depositary or its agent when the holder
deposits or withdraws sharesApplicable Expenses of the Depositary

   Cable, telex and facsimile transmissions
    Converting foreign currency to US
DollarsApplicable Taxes and other governmental charges the Depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes

   As necessary Fees and direct and indirect payments made by the Depositary to the Company The Bank of New York Mellon, as Depositary, has agreed to reimburse certain Company expenses related to the Companys ADS programme and incurred by
the Company in connection with the ADS programme. For the year ended 31 December 2014 the Depositary reimbursed to the Company, or paid amounts on its behalf to third parties, a total sum of $175,192. The table below sets forth the category of expense that the Depositary has agreed to reimburse the Company and the amounts reimbursed for the year ended
31 December 2014:  Category of expense reimbursed to the Company

Amount reimbursed for the
year ended 31 December 2014NYSE listing fees


$98,345Investor relations expenses


$37,580Total


$135,925 The table below sets forth the types of expenses that the Depositary has paid to third parties and the amounts reimbursed
for the year ended 31 December 2014:  Category of expense waived or paid directly to third parties

Amount reimbursed for the
year ended 31 December 2014Printing, distribution and administration costs paid directly to third parties in connection with US shareholder communications and AGM related expenses in connection with
the ADS program1


$39,267Total


$39,267  1
During 2014, $39,267 was paid by the Depositary to third parties, relating to services provided in 2014. These fees are SEC approved.


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Shareholder Information| continued The Depositary has also agreed to waive fees for standard costs associated with the administration of the ADS
programme and has paid certain expenses directly to third parties on behalf of the Company. Under certain circumstances, including removal of the
Depositary or termination of the ADS programme by the Company before November 2016, the Company is required to repay the Depositary, up to a maximum of $250,000, the amounts waived, reimbursed and/or expenses paid by the Depositary to or on behalf
of the Company. Taxation The following summary outlines the material aspects of US federal income and Republic of Ireland tax law regarding the ownership and disposition of ADSs
or Ordinary Shares. Because it is a summary, holders of ADSs or Ordinary Shares are advised to consult their tax advisors with respect to the tax consequences of their ownership or disposition. This summary does not take into account the specific
circumstances of any particular holders (such as tax-exempt entities, certain insurance companies, broker-dealers, traders in securities that elect to mark-to-market, investors liable for alternative minimum tax, investors that actually or
constructively own 10% or more of the stock of the Company (by vote or value), investors that hold Ordinary Shares or ADSs as part of a straddle or a hedging or conversion transaction, investors that hold Ordinary Shares or ADSs as part of a wash
sale for tax purposes or investors whose functional currency is not the US Dollar), some of which may be subject to special rules. In addition, if a partnership holds the Ordinary Shares or ADSs, the US federal income tax treatment of a partner will
generally depend on the status of the partner and the tax treatment of the partnership and may not be described fully below. Holders of ADSs or Ordinary Shares are advised to consult their tax advisors with respect to US federal, state and local,
Republic of Ireland and other tax consequences of owning and disposing of Ordinary Shares and ADSs in their particular circumstances, and in particular whether they are eligible for the benefits of the Income Tax Treaty (as defined below) in respect
of their investment in the Ordinary Shares or ADSs. The statements regarding US and Irish laws set forth below are based, in part, on representations
of the Depositary and assume that each obligation in the Deposit Agreement and any related agreement will be performed in accordance with their terms. This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed US Treasury regulations, published
rulings and court decisions, and the laws of the Republic of Ireland all as currently in effect, as well as the Convention between the Government of the United States of America and the Government of Ireland for the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains (the Income Tax Treaty). These laws are subject to change, possibly on a retroactive basis. In general, holders of ADSs will be treated as the owners of Ordinary Shares represented thereby for the purposes of the Income Tax Treaty and for US
federal income tax purposes. Exchanges of Ordinary Shares for ADSs, and ADSs for Ordinary Shares, generally will not be subject to US federal income or Irish tax. As used herein, the term US holder means a beneficial owner of an ADS or Ordinary Share who (i) is a US citizen or resident, a US
corporation, an estate whose income is subject to US federal income tax regardless of its source, or a trust if a US court can exercise primary supervision over the trusts administration and one or more US persons are authorised to control all
substantial decisions of the trust, and (ii) is not a resident of, or ordinarily resident in, the Republic of Ireland for purposes of Irish taxes. Taxation of Dividends paid to US Holders Under general Irish tax law, US holders are not liable for Irish tax on
dividends received from the Company. On the payment of dividends, the Company is obliged to withhold a Dividend Withholding Tax (DWT). The statutory rate at present is 20% of the dividend payable. Dividends paid by the Company to a US
tax resident individual will be exempt from DWT, provided the following conditions are met:  1.
the individual (who must be the beneficial owner) is resident for tax purposes in the US (or any country with which Ireland has a double tax treaty) and neither resident nor ordinarily resident in Ireland; and  2.
the individual signs a declaration to the Company, which states that he/she is a US tax resident individual at the time of making the declaration and that he/she will notify the Company in writing when he/she no longer
meets the condition in (1) above; or  3.
the individual provides the Company with a certificate of tax residency from the US tax authorities. Dividends paid by the Company to a US tax resident company (which must be the beneficial owner) will be exempt from DWT, provided the following conditions
are met:








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Shareholder Information| continued  1.
the recipient company is resident for tax purposes in the US (or any country with which Ireland has a double tax treaty) and not under the control, either directly or indirectly, of Irish resident persons; and  2.
the recipient company is not tax resident in Ireland; and  3.
the recipient company provides a declaration to the Company, which states that it is entitled to an exemption from DWT, on the basis that it meets the condition in (1) above at the time of making the declaration,
and that it will notify the Company when it no longer meets the condition in (1) above. For US federal income tax purposes, and
subject to the passive foreign investment company (PFIC) rules discussed below, US holders will include in gross income the gross amount of any dividend paid by the Company out of its current or accumulated earnings and profits (as
determined for US federal income tax purposes) as ordinary income when the dividend is actually or constructively received by the US holder, in the case of Ordinary Shares, or by the Depositary, in the case of ADSs. Any Irish tax withheld from this
dividend payment must be included in this gross amount even though the amount withheld is not in fact received. Dividends paid to non-corporate US holders that constitute qualified dividend income will be taxed at the preferential rates applicable
to long-term capital gains provided certain holding period requirements are met. Dividends the Company pays with respect to Ordinary Shares or ADSs generally will be qualified dividend income. Dividends will not be eligible for the dividends
received deduction generally allowed to US corporations in respect of dividends received from other US corporations. The amount of the dividend
distribution includable in income of a US holder will be the US Dollar value of the euro payments made, determined at the spot euro/US Dollar rate on the date such dividend distribution is includable in the income of the US holder, regardless of
whether the payment is in fact converted to US Dollars. Generally any gain or loss resulting from currency exchange fluctuations during the period from the date the dividend payment is includable in income to the date such payment is converted into
US Dollars will be treated as ordinary income or loss and will not be eligible for the special tax rate applicable to qualified dividend income. Such gain or loss will generally be income or loss from sources within the US for foreign tax credit
limitation purposes. Distributions in excess of current and accumulated earnings and profits, as determined for US federal income tax purposes, will
be treated as a non-taxable return of capital to the extent of the US holders basis in the Ordinary Shares or ADSs and thereafter as capital gain. However, the Company does not calculate earnings and profits in accordance with US federal
income tax principles. Accordingly, US holders should expect to generally treat distributions the Company makes as dividends. For foreign tax credit
limitation purposes, dividends the Company pays with respect to Ordinary Shares or ADSs will be income from sources outside the US, and will, depending on your circumstances, be either passive or general income for purposes
of computing the foreign tax credit allowable to a US holder. Any Irish tax withheld from distributions will not be eligible for a foreign tax credit to the extent an exemption from the tax withheld is available to the US holder. Capital Gains Tax A US holder will
not be liable for Irish tax on gains realised on the sale or other disposition of ADSs or Ordinary Shares unless the ADSs or Ordinary Shares are held in connection with a trade or business carried on by such holder in the Republic of Ireland through
a branch or agency. A US holder will be liable for US federal income tax on such gains in the same manner as gains from a sale or other disposition of any other shares in a company. Subject to the PFIC rules below, US holders who sell or otherwise
dispose of Ordinary Shares or ADSs will recognise capital gain or loss for US federal income tax purposes equal to the difference between the US Dollar value of the amount realised on the sale or disposition and the tax basis, determined in US
Dollars, in the Ordinary Shares or ADSs. Capital gains of a non-corporate US holder are generally taxed at a preferential rate where the holder has a holding period greater than one year, and the capital gain or loss will generally be US source for
foreign tax credit limitation purposes. Capital Acquisitions Tax (Estate/Gift Tax) Although non-residents may hold Ordinary Shares, the shares are deemed to be situated in the Republic of Ireland, because the Company is required to
maintain its Share Register in the Republic of Ireland for Irish Capital Gains Tax purposes. Accordingly, holders of Ordinary Shares may be subject to Irish gift or inheritance tax, notwithstanding that the parties involved are domiciled and
resident outside the Republic of Ireland. Certain exemptions apply to gifts and inheritances depending on the relationship between the donor and donee. Under the Ireland-US Estate Tax Treaty with respect to taxes on the estates of deceased persons, credit against US federal estate tax is available in
respect of any Irish inheritance tax payable in respect of transfers of Ordinary Shares.


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Shareholder Information| continued Additional Federal US Income Tax Considerations The Company believes that Ordinary Shares and ADSs should not be treated as stock of a PFIC for US federal income tax purposes, but this conclusion is a
factual determination that is made annually and thus may be subject to change. If the Company is treated as a PFIC and you are a US holder that did not make a mark-to-market election, you will be subject to special rules with respect to any gain you
realise on the sale or other disposition of your Ordinary Shares or ADSs and any excess distribution that the Company makes to you. Generally, any such gain or excess distribution will be allocated ratably over your holding period for the Ordinary
Shares or ADSs, the amount allocated to the taxable year in which you realised the gain or received the excess distribution will be taxed as ordinary income, the amount allocated to each prior year will be generally taxed as ordinary income at the
highest tax rate in effect for each such year, and an interest charge will be applied to any tax attributable to such gain or excess distribution for the prior years. With certain exceptions, Ordinary Shares or ADSs will be treated as stock in a
PFIC if the company was a PFIC at any time during the investors holding period in the Ordinary Shares or ADSs. In addition, dividends that you receive from the Company will not constitute qualified dividend income to you if the Company is
deemed to be a PFIC either in the taxable year of the distribution or the preceding taxable year, but instead will be taxable at rates applicable to ordinary income. Stamp Duty Section 90 Stamp
Duties Consolidation Act 1999 exempts from Irish stamp duty transfers of ADSs where the ADSs are dealt in and quoted on a recognised stock exchange in the US and the underlying deposited securities are dealt in and quoted on a recognised stock
exchange. The Irish tax authorities regard NASDAQ and the NYSE as recognised stock exchanges. Irish stamp duty will be charged at the rate of 1% of the amount or value of the consideration on any conveyance or transfer on sale of Ordinary Shares
(exemption generally available in the case of single transfers with a value of less than 1,000). Memorandum and Articles of Association The Companys
Memorandum of Association sets out the objects and powers of the Company. The Articles of Association detail the rights attaching to each share class; the method by which the Companys shares can be purchased or reissued; the provisions which
apply to the holding of and voting at general meetings; and the rules relating to the Directors, including their appointment, retirement, re-election, duties and powers. A copy of the current Memorandum and Articles of Association can be obtained from the Groups website, www.crh.com. The following summarises certain provisions of CRHs Memorandum and Articles of Association and applicable Irish law. Objects and Purposes CRH is
incorporated under the name CRH public limited company and is registered in Ireland with registered number 12965. Clause 4 of CRHs Memorandum of Association provides that its objects include the business of quarry masters and proprietors,
lessees and workers of quarries, sand and gravel pits, mines and the like generally; the business of road-makers and contractors, building contractors, builders merchants and providers and dealers in road making and building materials, timber
merchants; and the carrying on of any other business calculated to benefit CRH. The memorandum grants CRH a range of corporate capabilities to effect these objects. Directors The Directors manage the business and affairs of CRH. Directors who are in any way, whether directly or indirectly, interested in contracts or other arrangements with CRH must declare the nature of their
interest at a meeting of the Directors, and, subject to certain exemptions, may not vote in respect of any contract or arrangement or other proposal whatsoever in which they have any material interest other than by virtue of their interest in shares
or debentures in the Company. However, in the absence of some other material interest not indicated below, a Director is entitled to vote and to be counted in a quorum for the purpose of any vote relating to a resolution concerning the following
matters:  

the giving of security or indemnity with respect to money lent or obligations taken by the Director at the request or for the benefit of the Company;  

the giving of security or indemnity to a third party with respect to a debt or obligation of the Company which the Director has assumed responsibility for under a guarantee, indemnity or the giving of security;  

any proposal under which the Director is interested concerning the underwriting of Company shares, debentures or other securities;








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Shareholder Information| continued  

any other proposal concerning any other company in which the Director is interested, directly or indirectly (whether as an officer, shareholder or otherwise) provided that the Director is not the holder of 1% or more of
the voting interest in the shares of such company; and  

proposals concerning the modification of certain retirement benefits under which the Director may benefit and which have been approved or are subject to approval by the Irish Revenue Commissioners. The Directors may exercise all the powers of the Company to borrow money, except that such general power is restricted to the aggregate amount of
principal borrowed less cash balances of the Company and its subsidiaries not exceeding an amount twice the aggregate of (a) the share capital of the Company; and (b) the amount standing to the credit of retained income, foreign currency
translation reserve and other reserves, capital grants, deferred taxation and non-controlling interest; less any repayable government grants; less (c) the aggregate amount of Treasury Shares and own shares held by the Company. The Company in general meeting from time to time determines the fees payable to the Directors. The CRH Board may grant special remuneration to any of its
number who being called upon, shall render any special or extra services to the Company or go or reside abroad in connection with the conduct of any of the affairs of the Company. The qualification of a Director is the holding alone and not jointly with any other person of 1,000 Ordinary Shares in the capital of the Company. Voting Rights The Articles provide
that, at shareholders meetings, holders of Ordinary Shares, either in person or by proxy, are entitled on a show of hands to one vote and on a poll to one vote per share. No member is entitled to vote at any general meeting unless all calls or
other sums immediately payable in respect of their shares in the Company have been paid. Laws, Decrees or other Regulations There are no restrictions under the Memorandum and Articles of Association of the Company or under Irish law that limit the right of non-Irish residents
or foreign owners freely to hold their Ordinary Shares or to vote their Ordinary Shares. Liquidation Rights/Return of Capital In the event of the Company being wound-up, the liquidator may, with the sanction of a shareholders special resolution, divide among
the holders of the Ordinary Shares the whole or any part of the net assets of the Company (after the return of capital and payment of accrued dividends on the preference shares) in cash or in kind, and may set such values as he deems fair upon any
property to be so divided and determine how such division will be carried out. The liquidator may, with a like sanction, vest such assets in trust as he thinks fit, but no shareholders will be compelled to accept any shares or other assets upon
which there is any liability. Variation in Class Rights Subject to the provisions of the Irish Companies Acts, the rights attached to any class of shares may be varied with the consent in writing of the holders
of not less than three-fourths in nominal value of the issued shares of that class, or with the sanction of a special resolution passed at a separate general meeting of the holders of those shares. Disclosure of Shareholders Interests A shareholder may lose the right to vote by not complying with any statutory notice or notice pursuant to Article 14 of the Articles of Association given
by the Company requiring an indication in writing of: (a) the capacity in which the shares are held or any interest therein; (b) the persons who have an interest in the shares and the nature of their interest; or (c) whether any of
the voting rights carried by such shares are the subject of any agreement or arrangement under which another person is entitled to control the shareholders exercise of these rights. Issue of Shares Subject to the
provisions of the Irish Companies Acts and the Articles of Association, the issue of shares is at the discretion of the Directors. Dividends Shareholders may by ordinary resolution declare final dividends and the Directors may declare interim dividends but no final dividend may
be declared in excess of the amount recommended by the Directors and no dividend may be paid otherwise than out of income available for that purpose in accordance with the Irish Companies Acts. There is provision to offer scrip dividends in lieu of
cash. The preference shares rank for fixed rate dividends in priority to the Ordinary and Income Shares for the time being of the


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Shareholder Information| continued Company. Any dividend which has remained unclaimed for twelve years from the date of its declaration shall, if the
Directors so decide, be forfeited and cease to remain owing by the Company. Meetings Shareholder meetings may be convened by majority vote of the Directors or requisitioned by shareholders holding not less than 5% of the voting rights of
the Company. A quorum for a general meeting of the Company is constituted by five or more shareholders present in person and entitled to vote. The passing of resolutions at a meeting of the Company, other than special resolutions, requires a simple
majority. A special resolution, in respect of which not less than 21 days notice in writing must be given, requires the affirmative vote of at least 75% of the votes cast. Preference Shares Details of the
5% and 7% A Cumulative Preference Shares are disclosed in note 28 to the Consolidated Financial Statements. Use of Electronic
Communication Whenever the Company, a Director, the Secretary, a member or any officer or person is required or permitted by the Articles
of Association to give information in writing, such information may be given by electronic means or in electronic form, whether as electronic communication or otherwise, provided that the electronic means or electronic form has been approved by the
Directors. 2015 Changes At
the Annual General Meeting to be held on 7 May 2015, the approval of shareholders will be sought for proposed changes to the Memorandum and Articles of Association, which will become effective on commencement of the Companies Act 2014
(currently expected to be 1 June 2015), as follows: Resolution 14 to be proposed at the Annual General Meeting is a special resolution and seeks
shareholder approval for certain changes to the Memorandum of Association. The proposed amendments, if approved, will update the statutory references in the Memorandum of Association in order to be consistent with the Companies Act 2014. Resolution 15 to be proposed at the Annual General Meeting is a special resolution and seeks shareholder approval for certain changes to the Articles of
Association. The proposed changes, if approved, will:  (i)
update Article 1 to disapply the optional sections of the Companies Act 2014, many of which deal with matters already specified in the Companys Articles
of Association;  (ii)
update all references to sections in the existing Companies Acts to their equivalent provision in the Companies Act 2014; and  (iii)
insert a new Article 96(d), which requires directors to seek approval of the Board before making a commitment which could require them to restrict their
independent judgement and permits these types of arrangements where they have been approved by the Board or pursuant to an authority delegated by the Board.  Financial CalendarAnnouncement of final results for 2014


26 February 2015Ex-dividend date


5 March 2015Record date for dividend


6 March 2015Extraordinary General Meeting


19 March 2015Latest date for receipt of scrip forms


24 April 2015Interim Management Statement


6 May 2015Annual General Meeting


7 May 2015Dividend payment date and first day of dealing in scrip dividend shares


12 May 2015Announcement of interim results for 2015


27 August 2015Interim Management Statement


19 November 2015 Electronic Communications Following the introduction of the 2007 Transparency Regulations, and in order to adopt a more environmentally friendly and cost effective approach, the
Company provides the Annual Report to








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Shareholder Information| continued shareholders electronically via the CRH website, www.crh.com, and only sends a printed copy to those shareholders who specifically request a copy.
Shareholders who choose to do so can receive other shareholder communications, for example, notices of general meetings and shareholder circulars, electronically. However, shareholders will continue to receive printed proxy forms, dividend
documentation and, if the Company deems it appropriate, other documentation by post. Shareholders can alter the method by which they receive communications by contacting the Registrars. Electronic Proxy Voting Shareholders may lodge a proxy form for the 2015 Annual General Meeting electronically by accessing the Registrars website as described below. CREST members wishing to appoint a proxy via CREST should refer to the CREST Manual and the notes to the Notice of the Annual General Meeting. Registrars Enquiries concerning
shareholdings should be addressed to the Registrars: Capita Asset Services P.O. Box 7117 Dublin 2 Ireland Telephone: +353 (0) 1 553 0050 Fax: +353 (0) 1 224 0700 Website:
www.capitaassetservices.com Shareholders with access to the internet may check their accounts by accessing the Registrars website and selecting
Shareholder Portal (Ireland). This facility allows shareholders to check their shareholdings and dividend payments, register e-mail addresses, appoint proxies electronically and download standard forms required to initiate changes in
details held by the Registrars. Shareholders will need to register for a User ID before using some of the services. Frequently Asked
Questions (FAQs) The Groups website contains answers to questions frequently asked by shareholders, including questions regarding
shareholdings, dividends payments, electronic communications and shareholder rights. The FAQ can be accessed in the Investors section of the website under Equity Investors. Exchange Controls Certain aspects of CRHs international monetary operations outside the EU were, prior to 31 December 1992, subject to regulation by the Central
Bank of Ireland. These controls have now ceased. There are currently no Irish foreign exchange controls, or other statute or regulations that restrict the export or import of capital, that affect the remittance of dividends, other than dividend
withholding tax on the Ordinary Shares, or that affect the conduct of the Companys operations. Principal Accountant Fees and Services Details of auditors fees are set out in note 3 to the Consolidated Financial Statements.
For details on the audit and non-audit services pre-approval policy see Corporate Governance  External Auditors on page 100. Documents on Display It is possible to read and copy documents referred to in this Annual Report on Form
20-F, which have been filed with the SEC at the SECs public reference room located at 100 F Street, NW, Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms and their copy charges.
The SEC filings are also available to the public from commercial document retrieval services and, for most recent CRH periodic filings only, at the Internet World Wide Web site maintained by the SEC at www.sec.gov.


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Exhibits

The following documents are filed as part of this Annual Report:



|1. | Memorandum and Articles of Association.*
|-- | ----------------------------------------



|2.1 | Amended and Restated Deposit Agreement dated 28 November 2006, between CRH plc and The Bank of New York Mellon.**
|--- | -----------------------------------------------------------------------------------------------------------------



|7. | Computation of Ratios of Earnings to Fixed Charges.
|-- | ---------------------------------------------------



|8. | Listing of principal subsidiary undertakings and equity accounted investments.
|-- | ------------------------------------------------------------------------------



|12. | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Public Company Accounting Reform and Investor Protection Act of 2002.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|13. | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Public Company Accounting Reform and Investor Protection Act of
2002.***
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|15. | Consent of Independent Registered Public Accounting Firm.
|--- | ---------------------------------------------------------



|99.1 | Disclosure of Mine Safety and Health Administration (MSHA) Safety Data.
|---- | -------------------------------------------------------------------------



|* | Incorporated by reference to Annual Report on Form 20-F for the year ended 31 December 2012 that was filed by the Company on 27 March 2013.
|- | -------------------------------------------------------------------------------------------------------------------------------------------



|** | Incorporated by reference to Annual Report on Form 20-F for the year ended 31 December 2006 that was filed by the Company on 3 May 2007.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------



|*** | Furnished but not filed.
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Signatures The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned
to sign this Annual Report on its behalf.  CRH public limited company(Registrant)By:

/s/ M. CartonMaeve CartonFinance DirectorDated: 12 March 2015