CRH : Interim Results | 2021

2021 Interim Results

Key Highlights

• Positive first-half performance; sales 15% ahead of prior year
• EBITDA 25% ahead; continued margin expansion in all Divisions
• Record cash generation supporting further delivery of shareholder value
• $1.1bn growth investments year-to-date; strong pipeline of opportunities
• Increasing cash returns; interim dividend +4.5% & ongoing share buybacks
• Market outlook improving; H2 EBITDA to be ahead of record prior year

Summary Financials	H1 2021	Change
Sales Revenue	$14.0bn	+15%
EBITDA	$2.0bn	+25%
EBITDA Margin	14.2%	+120bps
Operating Cash Flow	$1.6bn	+55%
EPS ($ cent)	100.1c	+95%

Albert Manifold, Chief Executive, said today:

''I am pleased to report a good first half as the strength and resilience of our business model once again delivers superior performance for CRH. Our integrated and solutions-focused approach leaves us uniquely positioned for the changing needs of construction, while our continued strong cash generation provides us with the flexibility to invest in future growth opportunities for our business. Based on current trading conditions and the positive momentum that we see across our markets, we expect second-half Group EBITDA to be ahead of a record prior year.''

Announced Thursday, 26 August 2021

2021 Interim Results

Health & Safety

The health and safety of our people remains our top priority as a number of markets continue to be affected by COVID-19. Our focus is to ensure that we continue to provide a safe working environment for our employees, contractors and customers, enabling them to carry out their activities in accordance with the health and safety protocols in place across our markets.

Trading Overview

Trading for the first half benefited from a positive underlying backdrop in both North America and Europe. Group sales of $14.0 billion (H1 2020: $12.2 billion) were 15% ahead of the same period last year and 10% ahead on a like-for-like1 basis with the second quarter of 2020 heavily impacted by the pandemic.

• Like-for-likesales in Americas Materials increased by 3% compared to 2020, driven by improved volumes of aggregates, cement and readymixed concrete, with price progress across all lines of business.
• In Europe Materials, strong volume growth against a prior year comparative heavily impacted by COVID-19 restrictions, along with good price momentum in key markets, resulted in like-for-like sales 17% ahead of 2020.
• Building Products benefited from strong residential repair, maintenance and improvement (RMI) activity in North America. Together with price progress across all platforms, the Division delivered like-for-like sales 8% ahead of 2020.

EBITDA of $2.0 billion was 25% ahead of 2020 (H1 2020: $1.6 billion) reflecting strong volume growth as well as a continued focus on price improvements and cost rationalisation which more than offset the impact of cost inflation. EBITDA was 19% ahead on a like-for-like basis and margin expansion was delivered across all three Divisions.

• In Americas Materials, good price progression, focused cost control and operational efficiencies delivered like-for-like EBITDA 6% ahead of 2020.
• Like-for-likeEBITDA in Europe Materials was 52% ahead of 2020, primarily reflecting the strong volume performance in our key markets further supported by price progress and cost control.
• Building Products delivered like-for-like EBITDA 12% ahead of 2020, due to good commercial management, profit improvement initiatives and cost discipline.

First-half profit after tax of $0.8 billion was 101% ahead of 2020 (H1 2020: $0.4 billion). Earnings per share were 95% higher than

last year at 100.1c (H1 2020: 51.3c), reflecting higher trading profits along with the profit on divestment of the Brazil cement operations. Note 2 on page 16 analyses the key components of the first-half 2021 performance.

Capital Allocation

In light of continued strong cash generation and consistent with our progressive dividend policy, the Board has decided to increase the interim dividend2 to 23.0c per share, an increase of 4.5% on prior year. Reflecting our strong financial position and commitment to returning cash to shareholders, the Group completed the most recent tranche of its share buyback programme in June, returning a further $0.3 billion of cash to shareholders in the first half of the year. The Group also announced on 30 June 2021, a further $0.3 billion tranche to be completed no later than 1 October 2021. Demonstrating CRH's strategy of disciplined investment, the Group has invested $1.1 billion year-to-date on acquisitions and expansionary capital expenditure. In addition, our acquisition pipeline remains strong and our significant balance sheet capacity offers flexibility to capitalise on these opportunities and deliver further value to shareholders.

Sustainability

Sustainability has been deeply embedded in all aspects of our strategy and business model for many years. We recognise the importance of decarbonisation in addressing the challenges of climate change and believe that our integrated model of value-added products and innovative solutions has a key part to play in the delivery of a more resilient built environment and a more sustainable future. We are making good progress in relation to our decarbonisation efforts and we are pleased to announce that we now expect to achieve our 2030 carbon emissions reduction target by 2025. We will continue to strive for further improvements in emissions reductions across our businesses and remain fully committed to achieving our ambition of carbon neutrality by 2050.

Trading Outlook

For the second half of the year, our Americas Materials Division is expected to continue to benefit from an improving economic backdrop and good underlying demand. We are further encouraged by the progress being made in relation to infrastructure funding negotiations in the United States (US). In Europe Materials, we expect solid construction demand in our key markets against a backdrop of a strong prior year comparative. Our Building Products Division is expected to continue to benefit from positive residential demand, with early signs of recovery in non-residential activity. Assuming normal weather patterns for the remainder of the construction season and against a backdrop of input cost inflation, we expect second-half Group EBITDA to be ahead of a record prior year comparative.

1. See pages 30 to 32 for glossary of alternative performance measures (including EBITDA, like-for-like (LFL)/organic), used throughout this report. Operating cash flow is net cash inflow from operating activities as reported in the Condensed Consolidated Statement of Cash Flows on page 13.
2. Further details on the dividend process, including the relevant dates, payment currency and currency election options, are set out in note 7 on page 20.
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CRH Interim Results | 2021

Americas Materials

Analysis of change

$ million	2020	Exchange	Acquisitions	Divestments	One-offs1	Organic	2021	% change
Sales revenue	4,479	+34	+115	-23	-	+145	4,750	+6%
EBITDA	667	-3	+9	-3	+21	+39	730	+9%
Operating profit	289	-7	+4	-	+21	+41	348	+20%
EBITDA/sales	14.9%						15.4%
Operating profit/sales	6.5%						7.3%

1One-offs primarily due to COVID-19 related restructuring costs in 2020

Despite inclement weather across parts of North America, particularly in the South, Americas Materials reported first-halflike-for-like sales 3% ahead and EBITDA 6% ahead of prior year. The increase in sales was driven by price progression across all lines of business and improved volumes in aggregates, cement and readymixed concrete, as some regions were impacted by pandemic restrictions in the second quarter of 2020. Like-for-like operating profit was 15% ahead of prior year. Strong sales and operating performance more than offset the impact of input cost inflation.

Americas Materials completed the divestment of its Brazil cement operations in April 2021 for consideration of $0.2 billion.

Aggregates

Total and like-for-like aggregates volumes were 5% ahead of 2020 driven by good demand in Northeast, Great Lakes and West. This was only partly offset by declines in South, which experienced adverse weather conditions. Total and like-for-like prices improved 1% over prior year, with average prices reflecting a sales mix impact. On a mix adjusted basis, aggregates pricing increased 4%, which resulted in good margin expansion overall.

Asphalt

First-half asphalt volumes were 1% lower than 2020 on a like-for-like basis. Inclement weather in South and lower volumes in Northeast offset good demand and strong backlog execution in West. Great Lakes volumes were in line with prior year. Overall, average prices were slightly ahead on a like-for-like basis.

Readymixed Concrete

Readymixed concrete volumes were 6% ahead of prior year on a total and like-for-like basis with good residential demand across all regions. Average prices increased 4%, ahead in all regions, benefiting from solid market demand.

Paving and Construction Services

Paving and construction revenues were 6% behind the first half of 2020 on a like-for-like basis, primarily driven by unfavourable weather in South, but also impacted by a slower start to the season in both our Great Lakes and Northeast regions. West saw increased activity driven by mild winter weather and strong demand. Construction margins were ahead of prior year.

Cement

Our cement business delivered operating profit growth in the first half of 2021, driven by improved volumes, strong price progression and continued contributions from cost saving initiatives. Sales volumes in our US operations were 3% ahead of prior year as strong demand in the West and South regions offset lower volumes in the Central region due to poor weather conditions in February and May. Volumes in Canada were ahead of 2020 due to healthy backlogs and strong market demand. Strong pricing trends were delivered with overall cement pricing 4% ahead of prior year, with increases in all regions.

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CRH Interim Results | 2021

Europe Materials

Analysis of change

$ million	2020	Exchange	Acquisitions	Divestments	One-offs1	Organic	2021	% change
Sales revenue	4,070	+355	+1	-35	-	+767	5,158	+27%
EBITDA	338	+25	-	-	+32	+190	585	+73%
Operating profit	62	+2	-	+1	+32	+198	295	+376%
EBITDA/sales	8.3%						11.3%
Operating profit/sales	1.5%						5.7%

1One-offs primarily due to COVID-19 related restructuring costs in 2020

Europe Materials like-for-like sales increased by 17% in the first half of the year reflecting volume growth and price progress in our key markets, against a prior year comparative which was heavily impacted by COVID-19.Like-for-like EBITDA was 52% ahead of prior year as price progress, strong fixed cost control and cost saving actions more than offset cost inflation. Operating profit was also well ahead.

United Kingdom (UK)

First-half sales were significantly ahead of prior year against the backdrop of COVID-19 restrictions during the second quarter of 2020. Cement, aggregates, asphalt and readymixed concrete volumes were ahead of prior year, with price progression across all products in the period. Operating profit was well ahead of prior year reflecting the improved sales performance despite increasing levels of input cost inflation.

Western Europe

An uplift in demand in Ireland following the easing of COVID-19 restrictions in the second quarter of 2021 resulted in sales significantly ahead of the first half of 2020. Strong sales volumes in all products and cost saving initiatives saw operating profit significantly outperform the first half of 2020. In France, strong volume demand across all products and price growth in cement and aggregates drove sales improvements in the first half of 2021; operating profit was significantly ahead of a COVID-19 impacted 2020 comparative. In Denmark, like-for-like sales and operating profit were behind due to a challenging pricing environment in the precast business and lower activity levels which were partly offset by cost saving initiatives. In the Benelux, sales were ahead of prior year due to an improved performance in the Belgian cement business leading to increased operating profit which was also supported by increased activity in the Dutch structural business. Prolonged winter weather as well as the non-recurrence of a major project impacted activity levels in Finland, resulting in sales and operating profit behind prior year. Sales in Switzerland benefited from higher volumes and prices in the cement business, with operating profit ahead in the first half. In Germany, sales and operating profit were ahead of 2020 with improved cement pricing supported by favourable weather and the commencement of a major infrastructure project, together with strong lime volumes and cost saving initiatives.

Eastern Europe

Sales in Poland were ahead of 2020 as positive pricing across all products more than offset lower cement volumes due to adverse winter weather in the first quarter. Operating profit was ahead due to a strong pricing performance and a continued focus on fixed cost reduction. In Ukraine, sales were ahead due to strong cement volumes driven by robust market demand, partly offset by lower cement prices as a result of a competitive pricing environment. Lower maintenance costs and tight cost control further contributed to higher operating profit than 2020. In Romania, sales and operating profit both exceeded prior year, as a result of higher cement volumes and prices coupled with cost saving initiatives. In Slovakia and Hungary, a positive impact from higher cement pricing and strong volumes in Hungary contributed to overall operating profit ahead of 2020. In Serbia, sales and operating profit were ahead due to higher cement volumes driven mainly by strong infrastructure demand and results were further supported by operational excellence initiatives.

Asia

Strong cement volumes in the Philippines were partly offset by lower prices, resulting in increased sales compared to a COVID-19 impacted 2020. Operating profit improved significantly due to higher volumes further supported by performance improvement and cost saving initiatives.

The Group also has a share of profit after tax from its stake in Yatai Building Materials in China which is reported within the Group's share of equity accounted investments' results. Improved cement prices were partially offset by lower volumes reflecting lower demand. Sales and operating profit were both ahead of the first half of 2020.

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CRH Interim Results | 2021

Building Products

Analysis of change

$ million	2020	Exchange	Acquisitions	Divestments	One-offs1	Organic	2021	% change
Sales revenue	3,666	+80	+94	-13	-	+309	4,136	+13%
EBITDA	585	+6	+8	-2	+12	+71	680	+16%
Operating profit	413	+2	+1	-2	+12	+78	504	+22%
EBITDA/sales	16.0%						16.4%
Operating profit/sales	11.3%						12.2%

1One-offs primarily due to COVID-19 related restructuring costs in 2020

In the first half of the year, Building Products recorded like-for-like sales growth of 8% as economic recovery spurred demand across the North American and European businesses. Growth continued in the residential sector driven by increased home improvement activity while non-residential construction activity remained subdued despite early signs of recovery.

Against a backdrop of an inflationary input cost environment, our businesses delivered higher margins through production efficiencies, commercial excellence initiatives, procurement savings and overhead cost control. On a like-for-like basis, EBITDA increased by 12% and operating profit by 19% as a result of volume growth, pricing discipline and cost saving initiatives.

Architectural Products

With strong volume growth in North America, along with solid pricing, Architectural Products' like-for-like sales were well ahead of the first half of 2020, reflecting a continuation of positive market demand across all regions and product groups. With heightened residential RMI demand, sales through both our retail and professional channels increased against a robust prior year comparative. Operating profit was ahead of 2020 and the businesses delivered good margin expansion with a continued focus on operational excellence, solid pricing growth and tight overhead cost control. Sales in our European businesses were ahead mainly due to improved pricing and volume growth in Germany.

Building Envelope

Building Envelope's like-for-like sales were ahead of the first half of 2020 in our architectural glass operations and our hardware and accessories business, C.R. Laurence, primarily due to good pricing discipline which offset lower volumes impacted by subdued non-residential markets. Operating profit was ahead of 2020 due to cost saving initiatives and favourable pricing more than offsetting lower sales volumes.

Infrastructure Products

Like-for-like sales were higher than the first half of 2020 due to strong volume growth in Europe driven by the technology and infrastructure markets. In North America, like-for-like sales were in line with prior year as growth in the utility enclosures business was offset by project delays in the pipe & precast business. The product group recorded strong like-for-like operating profit growth, particularly in Europe, due to continued performance improvement measures, pricing discipline and focused cost control. In Australia, like-for-like sales were behind the first half of 2020 due to a challenging economic backdrop coupled with the imposition of COVID-19 restrictions in the first half of 2021.

Construction Accessories

Like-for-like sales were ahead of the first half of 2020 driven by strong volumes as the business benefited from fewer COVID-19 restrictions and economic recovery, particularly in Europe, in addition to higher residential demand and project activity. Sales growth was primarily led by the UK, France and North America where operations were significantly disrupted by COVID-19 in 2020. Operating profit was ahead of 2020 due to higher sales volumes, favourable pricing and continued cost saving initiatives.

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CRH Interim Results | 2021