6-K 1 a5864r.htm PRIMARY 2022 FULL YEAR RESULTS a5864r
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A - 16 OR 15D - 16 OF
THE SECURITIES EXCHANGE ACT OF 1934
 
 
2 March 2023
Commission File No. 001-32846
 
____________________________
CRH public limited company
(Translation of registrant's name into English)
 
 
____________________________
 
 
Belgard Castle, Clondalkin,
Dublin 22, Ireland.
(Address of principal executive offices)
____________________________
 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
 
Form 20-F X Form 40-F___
 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):_________
 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):________
 
 
 
 
 
 
Enclosure: 2022 Full Year Results
 
 
2022 Full Year Results
This document contains inside information
 
 
 
Key Highlights
                                        
●
Strong performance underpinned by our integrated solutions strategy
●
Further growth in sales, EBITDA, margin & EPS despite significant cost inflation
●
Efficient & disciplined approach to capital allocation
●
FY dividend +5%, significantly increasing share buyback to $3bn over next 12 months
●
$3.3bn invested in solutions-focused acquisitions; strong pipeline of opportunities
●
Strong & flexible balance sheet; significant optionality for future value creation
●
Raising sustainability ambitions; updated 1.5°C decarbonisation targets
●
New organisational structure; aligning with integrated solutions strategy
●
Recommending transition to US primary listing in 2023
 
 
Summary Financials1                     2022               Change        
Sales                                             $32.7bn          +12%
EBITDA                                       $5.6bn            +13%
EBITDA Margin                          17.2%             +10bps
EPS                                                $3.50             +14%
           
 
 
 
Albert Manifold, Chief Executive, said today:
"Our 2022 performance reflects the outstanding commitment of our people, the underlying strength and resilience of our business and the continued delivery of our integrated, solutions-focused strategy. Despite significant cost pressures throughout the year, we delivered further improvements in profits, margins and returns. Our strong cash generation together with our relentless focus on disciplined capital allocation has also delivered the strongest balance sheet in our history, providing us with significant opportunities for further growth and value creation going forward."
 
Announced Thursday, 2 March 2023
 
 
 
1 Current and prior year trading information is presented on a continuing operations basis, excluding the results of the Building Envelope business which was divested in April 2022 and has been classified within discontinued operations.
 
 
 
2022 Full Year Results
 
Trading Overview
 
CRH delivered a strong performance in 2022 underpinned by our integrated solutions strategy along with resilient demand and commercial progress in North America and Europe. Group sales of $32.7 billion (2021: $29.2 billion) were 12% ahead of 2021 on both a total and like-for-like basis2. Group EBITDA of $5.6 billion (2021: $5.0 billion) was 13% ahead as good commercial management and further operational efficiencies offset significant cost inflation, overall Group margin was also ahead of prior year. Like-for-like EBITDA was 8% ahead of 2021.
 
●
Americas Materials delivered a strong performance with total sales 15% above 2021 levels and like-for-like sales 12% ahead driven primarily by solid price progression across all lines of business. EBITDA was 6% ahead, or 5% ahead on a like-for-like basis, as good commercial management partially offset the impact of higher input costs and lower volumes resulting from unfavourable weather.
●
Building Products maintained good activity levels as demand for critical utility infrastructure and outdoor living solutions remained resilient. This, together with strong performances from recent acquisitions, delivered total sales 26% ahead of 2021, or 11% ahead on a like-for-like basis. Total EBITDA was 52% ahead, 18% ahead on a like-for-like basis, as a result of continued progress on pricing, cost control and production efficiencies.
●
Europe Materials like-for-like sales were 11% ahead reflecting continued strong pricing progress which offset the impact of lower activity levels. Like-for-like EBITDA was 8% ahead, driven by commercial excellence measures across all countries along with a continued focus on cost savings, partly offset by significant cost inflation and the impact of the conflict in Ukraine. Total sales were in line with 2021 and EBITDA was 4% behind due to the impact of adverse currency translation effects.
 
Profit after tax from continuing operations was 10% ahead of 2021 at $2.7 billion (2021: $2.4 billion) driven primarily by the strong trading performance.
 
Earnings per share (EPS) from continuing operations was 14% higher than 2021 at $3.50 (2021: $3.06). Including the trading contribution and profit on disposal of our discontinued operations, total EPS was $5.07 (2021: $3.29).
 
Note 2 on page 15 analyses the key components of the 2022 performance.
 
Accelerating Integrated Solutions
 
Our 2022 performance reflects the continued delivery of our integrated solutions strategy. By uniquely integrating value-added materials, products and services across the construction project lifecycle, our strategy enables us to provide bespoke solutions for our customers that solve their increasingly complex construction needs, while also creating superior value for our business. To further accelerate the development of our integrated solutions strategy and align our business with the changing needs and future growth opportunities of our industry, the Group has decided to transition to a new organisational structure, effective from 1 January 20233. See Appendix 1 for further information and associated 2022 pro forma disclosures. Further financial information will be provided in advance of our April trading update.
 
Sustainability
 
We remain committed to continuously improving our sustainability performance and decarbonising our businesses. In 2022, we announced an industry leading absolute carbon emissions reduction target by 2030. In early 2023, the Science Based Targets initiative (SBTi) validated our revised targets in line with the updated 1.5°C science-based framework, which now equate to a 30% reduction in absolute carbon emissions by 2030 (from a 2021 base year). This is aligned with our ambition to be a net-zero business by 2050. In addition, we continue to expand our offering of integrated sustainable solutions to address the needs of our customers, advancing circularity and innovating to create a more sustainable built environment.
 
The Group has also recently announced the establishment of CRH Ventures, its venture capital unit, which will support the development of new technologies and innovative solutions to meet the increasingly complex needs of customers and evolving trends in construction. With access to a $250 million venturing and innovation fund to invest, CRH Ventures will partner with construction and climate technology companies, operating across the construction value chain.
 
Trading Outlook
 
Overall, we expect resilient demand and increased pricing in 2023 despite macroeconomic uncertainties and ongoing cost inflation. Our operations in North America will benefit from strong pricing and robust infrastructure demand being underpinned by significant increases in funding at both federal and state level. The non-residential sector is supported by government funding initiatives in clean energy and the onshoring of critical manufacturing, while the residential new-build sector will experience short-term weakness as a result of rising interest rates. In Europe we expect positive pricing momentum to offset lower volumes. Construction activity in Central and Eastern Europe will continue to be supported by EU infrastructure funds, while our businesses in Western Europe remain underpinned by resilient repair, maintenance and improvement (RMI) activity and stable infrastructure demand. Notwithstanding a number of macroeconomic risks and uncertainties, CRH remains well positioned for another year of progress in 2023 due to our uniquely integrated, value-added solutions strategy together with a strong and flexible balance sheet.
 
 
2 See pages 34 to 37 for glossary of alternative performance measures (including EBITDA, like-for-like/organic, Net Debt/EBITDA) used throughout this report.
 
3 Segmental information presented in the 2022 Financial Statements is based on the segment structure as at 31 December 2022 being Americas Materials, Building Products and Europe Materials.
 
 
 
Americas Materials
Analysis of change
$ million
2021
Exchange
Acquisitions
Divestments
Organic
2022
% change
Sales revenue
 
12,407
 
-41
 
+511
 
-60
 
+1,507
 
14,324
 
+15%
 
EBITDA
 
2,588
 
-4
 
+44
 
-13
 
+133
 
2,748
 
+6%
 
Operating profit
 
1,788
 
-2
 
-11
 
-11
 
+145
 
1,909
 
+7%
 
EBITDA/sales
 
20.9%
 
 
 
 
 
19.2%
 
 
Operating profit/sales
 
14.4%
 
 
 
 
 
13.3%
 
 
 
 
Americas Materials sales were 15% ahead driven primarily by solid price progression across all lines of business which was partly offset by lower volumes impacted by unfavourable weather. EBITDA of $2.7 billion and operating profit of $1.9 billion were 6% and 7% ahead of 2021 respectively, as positive pricing was impacted by higher input costs. Like-for-like sales and EBITDA were 12% and 5% ahead of 2021 respectively.
 
Construction market growth remained positive in 2022, primarily driven by strong infrastructure activity, supported by increases in federal, state and local transportation funding. The non-residential market remained resilient, while parts of the new-build residential market faced challenges from rising interest rates and affordability constraints. Canada experienced solid growth in most provinces; however, rising interest rates and inflationary pressures negatively impacted the residential market.
 
During 2022, Americas Materials completed ten solutions-focused acquisitions across the US with a total spend of $0.5 billion. The largest of these was the acquisition of Hinkle Contracting Company, a vertically integrated materials and road solutions business in Kentucky.
 
Materials
Aggregates volumes declined by 1% compared to 2021 as strong volumes in the South and Great Lakes divisions were offset by unfavourable weather which impacted activity in the Northeast and West divisions. Aggregates prices increased by 10%, driven by strong commercial management.
 
Asphalt volumes were 3% ahead, driven by increases in the Great Lakes and South divisions, while volumes were lower in the Northeast and West divisions. Asphalt prices increased by 20% compared to prior year.
 
Readymixed concrete volumes were 6% behind 2021 levels, impacted by less favourable weather conditions in the West and the Northeast. Strong commercial discipline delivered higher prices across all divisions, 14% ahead of 2021, which offset raw materials and energy cost inflation.
 
Paving and construction revenues were 25% ahead of 2021 due to a strong order book and good project execution.
 
Regional Performance
Sales in the Northeast division were 10% ahead of 2021 as prices improved across all lines of business offsetting lower volumes due to less favourable weather. Operating profit increased, driven by improved pricing which offset lower volumes and higher input costs.
 
Great Lakes sales were 20% ahead of 2021, led by improved pricing across all lines of business and solid construction demand. Growth in operating profit was achieved through strong commercial management and ongoing cost control, offsetting input cost inflation.
 
South division sales were 26% ahead of 2021 with volumes ahead of prior year. Pricing was strong across all lines of business. Operating profit marginally declined as strong pricing was offset by increases in energy and bitumen costs.
 
The West division delivered 10% sales growth, driven primarily by disciplined commercial management across all lines of business and strong construction revenues. Unfavourable weather and a late start to the season impacted volumes. Operating profit was slightly ahead of 2021 as lower volumes were offset by improved pricing.
 
Cement
Our cement division delivered sales growth of 8% driven primarily by price realisation of 12% which offset slightly lower volumes  compared with 2021. Operating profit was ahead driven by strong price progression amid an inflationary cost environment.
 
Building Products (Continuing Operations)
Analysis of change
$ million
2021
Exchange
Acquisitions
Divestments
Organic
2022
% change
Sales revenue
 
6,218
 
-167
 
+1,121
 
-4
 
+655
 
7,823
 
+26%
 
EBITDA
 
992
 
-7
 
+350
 
-
 
+175
 
1,510
 
+52%
 
Operating profit
 
729
 
-1
 
+285
 
-
 
+148
 
1,161
 
+59%
 
EBITDA/sales
 
16.0%
 
 
 
 
 
19.3%
 
 
Operating profit/sales
 
11.7%
 
 
 
 
 
14.8%
 
 
 
The table above excludes the trading performance of Building Envelope which, following its divestment, has been classified within discontinued operations.
 
Building Products delivered sales growth of 26%, 11% ahead on a like-for-like basis, due to strong demand for critical utility infrastructure and outdoor living solutions. This, combined with continued strong cost control and production efficiencies resulted in EBITDA 52% ahead of prior year and operating profit 59% ahead, 18% ahead and 20% ahead respectively on a like-for-like basis. This demonstrates the strong contribution from both the underlying businesses and recent acquisitions underpinned by our integrated solutions strategy.
 
Building Products completed ten acquisitions during 2022, mainly in the US, for a total spend of c. $2.7 billion. The largest acquisition was the purchase in July 2022 of Barrette Outdoor Living, North America's leading provider of fencing and railing solutions for the outdoor living space.
 
Architectural Products
Architectural Products in North America delivered strong sales growth in 2022, as sustained RMI activity offset the impact of rising interest rates on certain parts of new-build residential construction activity. Underlying demand in our European businesses was solid, particularly in Poland; however total sales were slightly behind 2021 due to currency headwinds. Pricing progress, improved operational performance and contributions from acquisitions resulted in operating profit ahead of prior year in both North America and Europe despite cost inflation and raw materials shortages. The integration of Barrette Outdoor Living is progressing well with trading in line with expectations and good synergy delivery.
 
Infrastructure Products
Infrastructure Products experienced strong sales growth in 2022, particularly in North America, with robust demand in the communications, energy, water and transportation sectors as well as strong contributions from recent acquisitions. This resulted in operating profit well ahead of prior year as higher activity levels combined with pricing progress and disciplined cost control offset higher energy and materials costs, as well as labour market constraints.
 
Construction Accessories
Proactive pricing actions by our Construction Accessories business resulted in sales ahead of prior year across all regions, with growth primarily driven by the UK, Germany and North America. Operating profit finished well ahead of prior year as commercial excellence measures successfully mitigated the impact of cost inflation.
 
 
Building Envelope (Discontinued Operations)
 
The commentary below refers to the trading results of Building Envelope, prior to its divestment in April 2022, compared to the same period in 2021.
 
Building Envelope delivered sales growth driven by C.R. Laurence and the aluminium glazing business. EBITDA was ahead of 2021 as a result of increased sales and margin expansion achieved through operating efficiencies.
 
Europe Materials
Analysis of change
$ million
2021
Exchange
Acquisitions
Divestments
Organic
2022
% change
Sales revenue
 
10,581
 
-1,151
 
+107
 
-44
 
+1,083
 
10,576
 
-
 
EBITDA
 
1,410
 
-157
 
+8
 
-4
 
+100
 
1,357
 
-4%
 
Operating profit
 
814
 
-79
 
+1
 
-2
 
+90
 
824
 
+1%
 
EBITDA/sales
 
13.3%
 
 
 
 
 
12.8%
 
 
Operating profit/sales
 
7.7%
 
 
 
 
 
7.8%
 
 
 
Europe Materials benefited from commercial management initiatives across all countries, which, along with a continued focus on cost savings, helped to mitigate significant energy and other input cost inflation, as well as the impact of the conflict in Ukraine. Like-for-like sales were 11% ahead reflecting continued strong pricing progress which offset the impact of lower activity levels. In 2022, EBITDA was $1.4 billion, 8% ahead on a like-for-like basis and operating profit was $0.8 billion, 12% ahead like-for-like. Unfavourable currency translation effects resulted in total sales in line with 2021, EBITDA -4% behind, and operating profit 1% ahead.
 
UK & Ireland
UK & Ireland sales and operating profit were well ahead of 2021 driven by strong pricing and ongoing performance optimisation initiatives. In the UK, aggregates and asphalt volumes were behind prior year due to lower paving activity, while readymixed concrete volumes benefited from an increase in project activity. Ireland primarily benefited from improved construction activity and pricing progress.
 
Europe North
Sales in Europe North (Finland, Germany and Switzerland) were in line with 2021 driven mainly by price increases which offset lower volumes, and a strong performance in our lime business. Like-for-like operating profit ended ahead of 2021 as improved pricing and cost savings actions compensated for an inflationary and volatile energy cost environment.
 
Europe West
Europe West (France, Benelux, Denmark and Spain) delivered sales slightly below 2021 due to softening volumes. Higher raw materials, energy and freight costs in all countries were offset by higher pricing, which, along with continued cost saving actions and commercial initiatives, saw like-for-like operating profit ahead of 2021.
 
Europe East
Sales in Europe East (Poland, Ukraine, Romania, Hungary, Slovakia, Serbia, and Croatia) were ahead of prior year due to a strong focus on commercial actions to offset significant cost inflation. Poland, in particular, delivered sales and operating profit strongly ahead of 2021. Activity levels in Ukraine were impacted by the ongoing conflict and we continue to prioritise the support of our employees during this challenging time. Total operating profit in Europe East was behind prior year.
 
Asia
Sales in the Philippines ended the year behind 2021. Construction activity was impacted by a pre-election ban on construction and high cost inflation which slowed large infrastructure project activity. Price increases largely offset weaker volumes; however, operating profit was impacted by high energy and transportation costs which resulted in operating profit significantly below 2021.
 
CRH's operations include a 26% stake in Yatai Building Materials (reported within the Group's share of equity accounted investments) in China where the government's COVID-19 restrictions impacted many areas of the economy, including the construction sector. This resulted in sales and operating profit below 2021.
 
Other Financial Items
 
Depreciation and amortisation charges amounted to $1.7 billion, in line with prior year (2021: $1.7 billion).
 
Divestments and asset disposals from continuing operations generated a total loss on disposals of $49 million (2021: $116 million profit). Profit after tax on the divestment of the Building Envelope business amounted to $1.1 billion and is included in profit after tax from discontinued operations.
 
Net finance costs of $376 million were lower than 2021 (2021: $399 million) primarily as a result of higher interest income and lower debt levels offsetting increased interest expense driven by higher rates.
 
The Group's share of profit from equity accounted investments was $nil (2021: $55 million), primarily driven by the performance of the Group's associate in China where activity levels were impacted by COVID-19 restrictions.
 
Profit before tax was $3.5 billion (2021: $3.1 billion), and the associated tax charge of $785 million (2021: $661 million) represented an effective tax rate of 22.6% (2021: 21.3%) on profit before tax, which was higher than prior year due to the tax impact of divestments.
 
Dividend
In addition to the interim dividend of $0.24 (2021: $0.23) per share which was paid in October 2022, the Board is recommending a final dividend of $1.03 per share. This would result in a total dividend of $1.27 for the year (2021: $1.21), an increase of 5.0% over 2021, in line with the Group's progressive dividend policy. Based on the EPS from continuing operations for the year this represents a dividend cover of 2.8x. It is proposed to pay the final dividend on 4 May 2023 to shareholders registered at close of business on 17 March 2023. The ex-dividend date will be 16 March 2023. The final dividend will be paid wholly in cash.
 
Share Buyback Programme
Reflecting our strong financial position and commitment to returning cash to shareholders, the Group continued its ongoing share buyback programme in 2022 repurchasing 29.8 million (2021: 17.8 million) ordinary shares for a total consideration of $1.2 billion (2021: $0.9 billion).
 
Our strong financial position and cash generation capabilities provides us with the opportunity to increase our cash returns to shareholders, while at the same time continuing to invest in our business and execute our strategic growth initiatives. Having carefully considered our near-term capital allocation opportunities, we intend to substantially increase our share buyback programme through the repurchase of up to $3 billion of CRH shares over the next 12 months4.
 
Consistent with the Group's disciplined approach to capital allocation, the increase in our share buyback programme demonstrates our confidence in the outlook for our business and our continued strong cash generation, while retaining the financial flexibility to invest in further growth and value creation opportunities for our shareholders. We remain committed to our progressive dividend policy and our strong investment grade credit rating.
 
Balance Sheet and Liquidity
2022 marked another year of strong cash generation for the Group with net cash inflow from operating activities of $4.0 billion (2021: $4.2 billion). Excluding higher tax outflows related to the Building Envelope divestment ($0.4 billion) net cash inflow from operating activities was higher than 2021 despite the impact of significant cost inflation on working capital. Year-end net debt of $5.1 billion (2021: $6.3 billion) reflects healthy inflows from operations, proceeds from the Building Envelope divestment, disciplined capital expenditure and value focused investments. Net debt to EBITDA was 0.9x (2021: 1.3x).
 
The Group ended 2022 with $5.9 billion of cash and cash equivalents on hand and $3.7 billion of undrawn committed facilities which are available until 2026. At year end, the Group had sufficient cash balances to meet all maturing debt obligations (including leases) for the next five years and the weighted average maturity of the remaining term debt was 12.2 years. The Group also has a $2.0 billion US Dollar Commercial Paper Programme and a €1.5 billion Euro Commercial Paper Programme of which there were no outstanding issued notes at year end. The Group continues to maintain its robust balance sheet and a strong investment grade credit rating with a BBB+ or equivalent rating with each of the three main rating agencies.
 
Investments and Divestments
 
In 2022 the Group invested $3.3 billion on 29 acquisitions (including deferred and contingent consideration in respect of prior year acquisitions). On the divestment front, the Group completed nine transactions and realised total business and asset disposal proceeds5 of $3.9 billion, primarily relating to the proceeds from the Building Envelope divestment.
 
Investments and Acquisitions
The largest acquisition in 2022 was in our Building Products Division where the Group completed its $1.9 billion acquisition of Barrette Outdoor Living, North America's leading provider of fencing and railing solutions. This acquisition complements and enhances our offering of sustainable outdoor living solutions in North America. In addition, Building Products completed a further seven acquisitions in the US and two in Europe, amounting to a total spend of c. $2.7 billion. The Americas Materials Division completed ten solutions-focused acquisitions in the US for a total spend of $0.5 billion, and the Europe Materials Division completed nine bolt-on acquisitions for $0.1 billion, the largest of which was the acquisition of a precast business in Denmark.
 
 
Divestments and Disposals
The largest divestment in 2022 was the Building Envelope business for cash proceeds of $3.5 billion (enterprise value of $3.8 billion including lease liabilities transferred of $0.3 billion). A further eight divestments were completed across the Group, realising total proceeds of $0.2 billion. In addition to these business divestments, the Group realised proceeds of $0.1 billion from the disposal of surplus property, plant and equipment and other non-current assets.
 
4 In accordance with the applicable authority considered annually by shareholders to repurchase CRH ordinary shares.
5 Net of cash disposed and including deferred consideration proceeds in respect of prior year divestments.
 
 
Listing Considerations
 
Through the active reshaping and repositioning of CRH's business over the last decade, North America now represents approximately 75% of Group EBITDA. The US is expected to be a key driver of future growth for CRH and our exposure to this market is likely to increase further driven by substantial increases in infrastructure funding, a renewed drive for the onshoring of manufacturing activity and significant levels of under-build in the residential construction market.
 
We communicate frequently with our stakeholders regarding our future strategy, our portfolio of businesses and how we keep our listing arrangements regularly under review.
 
We have now come to the conclusion that a US primary listing would bring increased commercial, operational and acquisition opportunities for CRH, further accelerating our successful integrated solutions strategy and delivering even higher levels of profitability, returns and cash for our shareholders.
 
In the coming weeks we will outline to our shareholders why we are recommending that it is in the best interests of our business and our shareholders to pursue a primary listing of CRH, together with US equity index inclusion as soon as possible.
 
This change in listing structure will have no impact on CRH plc, which will remain headquartered, incorporated and tax-resident in Ireland. 
 
We will provide a further update as part of our trading statement on Wednesday 26 April 2023.
 
 
 
 
Primary Financial Statements
and
Summarised Notes
Year ended 31 December 2022
 
Consolidated Income Statement
for the financial year ended 31 December 2022
 
 
 
 
Restated (i)
 
 
2022
 
2021
 
 
$m
 
$m
 
 
 
 
 
 
Revenue
32,723
 
29,206
 
Cost of sales
(21,844)
 
(19,350)
 
Gross profit
10,879
 
9,856
 
Operating costs
(6,985)
 
(6,525)
 
Group operating profit
3,894
 
3,331
 
(Loss)/profit on disposals
(49)
 
116
 
Profit before finance costs
3,845
 
3,447
 
Finance costs
(401)
 
(357)
 
Finance income
65
 
-
 
Other financial expense
(40)
 
(42)
 
Share of equity accounted investments' profit
-
 
55
 
Profit before tax from continuing operations
3,469
 
3,103
 
Income tax expense
(785)
 
(661)
 
Group profit for the financial year from continuing operations
2,684
 
2,442
 
Profit after tax for the financial year from discontinued operations
1,190
 
179
 
Group profit for the financial year
3,874
 
2,621
 
 
 
 
 
 
Profit attributable to:
 
 
 
 
 
 
 
 
 
Equity holders of the Company
 
 
 
 
From continuing operations
2,657
 
2,386
 
From discontinued operations
1,190
 
179
 
Non-controlling interests
 
 
 
 
From continuing operations
27
 
56
 
Group profit for the financial year
3,874
 
2,621
 
 
 
 
 
 
Basic earnings per Ordinary Share
$5.07
 
$3.29
 
Diluted earnings per Ordinary Share
$5.03
 
$3.26
 
 
 
 
 
 
Basic earnings per Ordinary Share from continuing operations
$3.50
 
$3.06
 
Diluted earnings per Ordinary Share from continuing operations
$3.48
 
$3.03
 
 
(i)      Restated to show the results of our former Building Envelope business in discontinued operations. See note 8 for further details.
 
 
 
Consolidated Statement of Comprehensive Income
for the financial year ended 31 December 2022
 
 
2022
 
2021
 
 
$m
 
$m
 
 
 
 
 
 
Group profit for the financial year
3,874
 
2,621
 
 
 
 
 
 
Other comprehensive income
 
 
 
 
Items that may be reclassified to profit or loss in subsequent years:
 
 
 
 
Currency translation effects
(641)
 
(338)
 
Gains relating to cash flow hedges
66
 
34
 
Tax relating to cash flow hedges
(14)
 
(8)
 
 
(589)
 
(312)
 
Items that will not be reclassified to profit or loss in subsequent years:
 
 
 
 
Remeasurement of retirement benefit obligations
279
 
264
 
Tax relating to retirement benefit obligations
(63)
 
(36)
 
 
216
 
228
 
 
 
 
 
 
Total other comprehensive income for the financial year
(373)
 
(84)
 
Total comprehensive income for the financial year
3,501
 
2,537
 
 
 
 
 
 
Attributable to:
 
 
 
 
Equity holders of the Company
3,520
 
2,516
 
Non-controlling interests
(19)
 
21
 
Total comprehensive income for the financial year
3,501
 
2,537
 
 
 
 
 
Consolidated Balance Sheet
 
as at 31 December 2022
 
 
 
 
 
2022
 
2021
 
$m
 
$m
ASSETS
 
 
 
Non-current assets
 
 
 
Property, plant and equipment
18,921
 
19,502
Intangible assets
10,287
 
9,848
Investments accounted for using the equity method
649
 
653
Other financial assets
14
 
12
Other receivables
164
 
239
Retirement benefit assets
261
 
166
Derivative financial instruments
3
 
97
Deferred income tax assets
88
 
109
Total non-current assets
30,387
 
30,626
 
 
 
 
Current assets
 
 
 
Inventories
4,194
 
3,611
Trade and other receivables
4,569
 
4,569
Current income tax recoverable
63
 
42
Derivative financial instruments
39
 
39
Cash and cash equivalents
5,936
 
5,783
Total current assets
14,801
 
14,044
 
 
 
 
Total assets
45,188
 
44,670
 
 
 
 
EQUITY
 
 
 
Capital and reserves attributable to the Company's equity holders
 
 
 
Equity share capital
302
 
309
Preference share capital
1
 
1
Treasury Shares and own shares
(297)
 
(195)
Other reserves
380
 
445
Cash flow hedging reserve
5
 
-
Foreign currency translation reserve
(692)
 
(97)
Retained income
21,992
 
19,770
Capital and reserves attributable to the Company's equity holders
21,691
 
20,233
Non-controlling interests
646
 
681
Total equity
22,337
 
20,914
 
 
 
 
LIABILITIES
 
 
 
Non-current liabilities
 
 
 
Lease liabilities
1,059
 
1,374
Interest-bearing loans and borrowings
8,145
 
9,938
Derivative financial instruments
77
 
-
Deferred income tax liabilities
2,868
 
2,734
Other payables
691
 
717
Retirement benefit obligations
277
 
475
Provisions for liabilities
845
 
937
Total non-current liabilities
13,962
 
16,175
 
 
 
 
Current liabilities
 
 
 
Lease liabilities
260
 
297
Trade and other payables
5,872
 
5,692
Current income tax liabilities
702
 
550
Interest-bearing loans and borrowings
1,491
 
549
Derivative financial instruments
51
 
14
Provisions for liabilities
513
 
479
Total current liabilities
8,889
 
7,581
Total liabilities
22,851
 
23,756
 
 
 
 
Total equity and liabilities
45,188
 
44,670
 
 
 
Consolidated Statement of Changes in Equity   
 
for the financial year ended 31 December 2022
 
 
Attributable to the equity holders of the Company
 
 
 
Issued
share
capital
$m
Share
premium
account
$m
Treasury
Shares/
own
shares
$m
Other
reserves
$m
Cash flow hedging reserve
$m
Foreign
currency
translation
reserve
$m
Retained
income
$m
Non-
controlling
interests
$m
Total
equity
$m
 
 
 
 
 
 
 
 
 
 
At 1 January 2022
310
-
(195)
445
-
(97)
19,770
681
20,914
Group profit for the financial year
-
-
-
-
-
-
3,847
27
3,874
Other comprehensive income
-
-
-
-
66
(595)
202
(46)
(373)
Total comprehensive income
-
-
-
-
66
(595)
4,049
(19)
3,501
Reclassifications
-
-
-
-
35
-
(35)
-
-
Share-based payment expense
-
-
-
101
-
-
-
-
101
Shares acquired by CRH plc (Treasury Shares)
-
-
(1,170)
-
-
-
17
-
(1,153)
Treasury Shares/own shares reissued
-
-
24
-
-
-
(24)
-
-
Shares acquired by Employee Benefit Trust (own shares)
-
-
(8)
-
-
-
-
-
(8)
Shares distributed under the Performance Share Plan Awards
-
-
173
(173)
-
-
-
-
-
Cancellation of Treasury Shares
(7)
-
879
7
-
-
(879)
-
-
Hedging gains transferred to inventory
-
-
-
-
(96)
-
-
-
(96)
Tax relating to cash flow hedges
-
-
-
-
-
-
17
-
17
Tax relating to share-based payment expense
-
-
-
-
-
-
(3)
-
(3)
Share option exercises
-
-
-
-
-
-
11
-
11
Dividends
-
-
-
-
-
-
(931)
(13)
(944)
Transactions involving non-controlling interests
-
-
-
-
-
-
-
(3)
(3)
At 31 December 2022
303
-
(297)
380
5
(692)
21,992
646
22,337
 
 
 
 
 
 
 
 
 
 
for the financial year ended 31 December 2021
At 1 January 2021
334
7,493
(386)
444
-
206
11,565
692
20,348
Group profit for the financial year
-
-
-
-
-
-
2,565
56
2,621
Other comprehensive income
-
-
-
-
-
(303)
254
(35)
(84)
Total comprehensive income
-
-
-
-
-
(303)
2,819
21
2,537
Share-based payment expense
-
-
-
110
-
-
-
-
110
Shares acquired by CRH plc (Treasury Shares)
-
-
(880)
-
-
-
(281)
-
(1,161)
Treasury Shares/own shares reissued
-
-
19
-
-
-
(19)
-
-
Shares acquired by Employee Benefit Trust (own shares)
-
-
(16)
-
-
-
-
-
(16)
Shares distributed under the Performance Share Plan Awards
-
-
117
(117)
-
-
-
-
-
Reduction in Share Premium
-
(7,493)
-
-
-
-
7,493
-
-
Cancellation of Income Shares
(16)
-
-
-
-
-
16
-
-
Cancellation of Treasury Shares
(8)
-
951
8
-
-
(951)
-
-
Tax relating to share-based payment expense
-
-
-
-
-
-
24
-
24
Share option exercises
-
-
-
-
-
-
13
-
13
Dividends
-
-
-
-
-
-
(909)
(32)
(941)
At 31 December 2021
310
-
(195)
445
-
(97)
19,770
681
20,914
 
 
 
 
Consolidated Statement of Cash Flows
 
for the financial year ended 31 December 2022
 
 
 
 
Restated (i)
 
 
2022
 
2021
 
 
$m
 
$m
 
Cash flows from operating activities
 
 
 
 
Group profit for the financial year
3,874
 
2,621
 
Finance costs (net)
382
 
417
 
Share of equity accounted investments' profit
-
 
(55)
 
Profit on disposals
(1,422)
 
(119)
 
Depreciation charge
1,644
 
1,691
 
Amortisation of intangible assets
113
 
74
 
Share-based payment expense
101
 
110
 
Income tax expense
1,155
 
721
 
Other
42
 
21
 
Net movement in inventories, receivables, payables and provisions
(518)
 
(228)
 
Cash generated from operations
5,371
 
5,253
 
Interest paid (including leases)
(374)
 
(401)
 
Corporation tax paid
(1,043)
 
(642)
 
Net cash inflow from operating activities
3,954
 
4,210
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
Proceeds from disposals (net of cash disposed and deferred proceeds)
3,827
 
387
 
Interest received
65
 
-
 
Dividends received from equity accounted investments
36
 
32
 
Purchase of property, plant and equipment
(1,523)
 
(1,554)
 
Acquisition of subsidiaries (net of cash acquired)
(3,253)
 
(1,494)
 
Other investments and advances
(45)
 
(4)
 
Net cash flow arising from derivative financial instruments
(11)
 
-
 
Deferred and contingent acquisition consideration paid
(32)
 
(33)
 
Deferred divestment consideration received
52
 
120
 
Net cash outflow from investing activities
(884)
 
(2,546)
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
Proceeds from exercise of share options
11
 
13
 
Transactions involving non-controlling interests
(3)
 
-
 
Increase in interest-bearing loans and borrowings
38
 
-
 
Net cash flow arising from derivative financial instruments
(11)
 
(37)
 
Repayment of interest-bearing loans and borrowings
(364)
 
(1,183)
 
Repayment of lease liabilities (ii)
(249)
 
(264)
 
Treasury Shares/own shares purchased
(1,178)
 
(896)
 
Dividends paid to equity holders of the Company
(917)
 
(906)
 
Dividends paid to non-controlling interests
(13)
 
(32)
 
Net cash outflow from financing activities
(2,686)
 
(3,305)
 
 
 
 
 
 
Increase/(decrease) in cash and cash equivalents
384
 
(1,641)
 
 
 
 
 
 
Reconciliation of opening to closing cash and cash equivalents
 
 
 
 
Cash and cash equivalents at 1 January
5,783
 
7,721
 
Translation adjustment
(231)
 
(297)
 
Increase/(decrease) in cash and cash equivalents
384
 
(1,641)
 
Cash and cash equivalents at 31 December
5,936
 
5,783
 
 
(i)      See the Basis of Preparation and Accounting Policies on page 14 for further details.
 
(ii)     Repayment of lease liabilities amounted to $297 million (2021: $328 million), of which $48 million (2021: $64 million) related to interest paid which is presented in cash flows from operating activities.
 
 
 
 
 
Supplementary Information
 
 
Selected Explanatory Notes to the Consolidated Financial Statements
 
1.    Basis of Preparation and Accounting Policies
 
 
 
Basis of Preparation
The financial information presented in this report has been prepared in accordance with the Group's accounting policies under International Financial Reporting Standards (IFRS) as adopted by the European Union and as issued by the International Accounting Standards Board (IASB).
 
Certain prior year disclosures have been amended to conform to current year presentation. An amount of $46 million relating to the unwinding of the discount element of lease liabilities has been reclassified from other financial expense to finance costs in the period ended 31 December 2021 to align with current year presentation. This has no impact on total net finance costs or any other financial statement line items for any of the periods presented.
 
Adoption of IFRS and International Financial Reporting Interpretations Committee (IFRIC) interpretations
The following standard amendments became effective for the Group as of 1 January 2022:
 
●         Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework
●         Amendments to IAS16 Property, Plant and Equipment - Proceeds before Intended Use
●         Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets - Onerous Contracts - Costs of Fulfilling a Contract
●         Annual Improvements 2018 - 2020 Cycle
 
The standard amendments did not result in a material impact on the Group's results.
 
Voluntary Change in Accounting Policy
For the period ended 31 December 2022, the Group retrospectively adopted a voluntary change in accounting policy in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors with respect to the presentation of operating cash flows under IAS 7 Statement of Cash Flows. The impact of this change is to replace "Profit before tax" with "Group profit for the financial year" as the starting point for the reconciliation to net cash flows from operating activities in the Consolidated Statement of Cash Flows. The new presentation reconciles net cash flows from operating activities on a total Group basis, including both continuing and discontinued operations. This has no impact on net cash inflow from operating activities or any other financial statement line items for any of the periods presented.
 
 
 
Translation of Foreign Currencies
 
The financial information is presented in US Dollar millions. Results and cash flows of operations with non-US Dollar functional currencies have been translated into US Dollar at average exchange rates for the year, and the related balance sheets have been translated at the rates of exchange in effect at the balance sheet date. The principal rates used for the translation of results, cash flows and balance sheets into US Dollar were:
 
 
 
Average
 
Year end
US Dollar 1 =
2022
2021
 
2022
2021
 
 
 
 
 
 
Brazilian Real
5.1648
5.3968
 
5.2794
5.5716
Canadian Dollar
1.3017
1.2538
 
1.3535
1.2716
Chinese Renminbi
6.7334
6.4493
 
6.8987
6.3513
Danish Krone
7.0805
6.2919
 
6.9662
6.5652
Euro
0.9518
0.8460
 
0.9368
0.8829
Hungarian Forint
373.1682
303.3739
 
375.1400
325.9300
Indian Rupee
78.6295
73.9391
 
82.7211
74.3009
Philippine Peso
54.5318
49.2983
 
55.7290
50.9800
Polish Zloty
4.4631
3.8633
 
4.3881
4.0579
Pound Sterling
0.8120
0.7270
 
0.8310
0.7417
Romanian Leu
4.6930
4.1641
 
4.6357
4.3692
Serbian Dinar
111.7836
99.4732
 
109.8553
103.7590
Swiss Franc
0.9551
0.9145
 
0.9230
0.9119
Ukrainian Hryvnia
32.6730
27.2588
 
36.9172
27.2850
 
 
 
 
 
2.   Key Components of 2022 Performance
Continuing operations
 
 
$ million
Sales revenue
EBITDA
Operating profit
Profit/(loss) on disposals
Finance costs (net)
Assoc. and JV PAT (i)
Pre-tax profit
 
 
 
 
 
 
 
 
2021
29,206
4,990
3,331
116
(399)
55
3,103
Exchange effects
(1,359)
(168)
(82)
(2)
19
(3)
(68)
2021 at 2022 rates
27,847
4,822
3,249
114
(380)
52
3,035
Incremental impact in 2022 of:
 
 
 
 
 
 
 
2021/2022 acquisitions
1,739
402
275
-
(55)
-
220
2021/2022 divestments
(108)
(17)
(13)
(177)
47
-
(143)
Organic
3,245
408
383
14
12
(52)
357
2022
32,723
5,615
3,894
(49)
(376)
-
3,469
 
 
 
 
 
 
 
 
% Total change
12%
13%
17%
 
 
 
12%
% Organic change
12%
8%
12%
 
 
 
12%
 
 
(i)      CRH's share of after-tax results of joint ventures and associated undertakings.
 
 
 
3.    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 46% of full-year 2022 (2021: 45%), while EBITDA for the first six months of 2022 represented 39% of the full-year out-turn (2021: 36%).
 
 
 
 
4.    Revenue
 
 
A.    Disaggregated revenue
 
In the following tables, revenue is disaggregated by primary geographic market and by principal activities and products. Due to the diversified nature of the Group, the basis on which management reviews its businesses varies across the Group. Geography is the primary basis for the Americas Materials and Europe Materials businesses; while activities and products are used for the Building Products businesses.
 
 
 
Revenue from external customers (as defined in IFRS 8 Operating Segments) attributable to the country of domicile and all foreign countries of operation greater than 10% are included below. Further operating segment disclosures are set out in note 5.
 
 
 
 
Year ended 31 December
 
Americas Materials
Building Products
Europe Materials
Total
 
Americas Materials
Building Products
Europe Materials
Total
 
2022
2022
2022
2022
 
2021
2021
2021
2021
 
$m
$m
$m
$m
 
$m
$m
$m
$m
Primary geographic markets
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
Republic of Ireland (country of domicile)
-
-
801
801
 
-
-
706
706
United Kingdom
-
238
4,003
4,241
 
-
220
3,979
4,199
Rest of Europe (i)
-
1,074
5,219
6,293
 
-
1,073
5,243
6,316
United States
13,050
6,038
-
19,088
 
11,172
4,446
-
15,618
Rest of World (ii)
1,274
473
553
2,300
 
1,235
479
653
2,367
Total Group from continuing operations
14,324
7,823
10,576
32,723
 
12,407
6,218
10,581
29,206
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
United Kingdom - Building Envelope
-
7
-
7
 
-
24
-
24
Rest of Europe (i) - Building Envelope
-
4
-
4
 
-
12
-
12
United States - Building Envelope
-
576
-
576
 
-
1,575
-
1,575
Rest of World (ii) - Building Envelope
-
58
-
58
 
-
164
-
164
Total Group from discontinued operations
-
645
-
645
 
-
1,775
-
1,775
 
 
Footnotes (i) and (ii) appear on page 17.
 
 
 
 
 
 
4.    Revenue - continued
 
 
 
Year ended 31 December
 
 
Americas Materials
(iii)
BuildingProducts
Europe Materials
(iii)
Total
 
Americas Materials
(iii)
Building Products
Europe Materials
(iii)
Total
 
2022
2022
2022
2022
 
2021
2021
2021
2021
 
$m
$m
$m
$m
 
$m
$m
$m
$m
 
 
 
 
 
 
 
 
 
 
Principal activities and products
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
Cement, lime and cement products
1,554
-
3,481
5,035
 
1,483
-
3,463
4,946
Aggregates, asphalt and readymixed products
6,979
-
3,515
10,494
 
6,262
-
3,606
9,868
Construction contract activities*
5,791
88
2,101
7,980
 
4,662
92
2,065
6,819
Architectural products
-
4,409
1,308
5,717
 
-
3,790
1,264
5,054
Infrastructure products
-
2,531
171
2,702
 
-
1,605
183
1,788
Construction accessories
-
795
-
795
 
-
731
-
731
Total Group from continuing operations
14,324
7,823
10,576
32,723
 
12,407
6,218
10,581
29,206
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
Construction contract activities* - Building Envelope
-
16
-
16
 
-
83
-
83
Architectural glass and glazing systems and related hardware - Building Envelope
-
629
-
629
 
-
1,692
-
1,692
Total Group from discontinued operations
-
645
-
645
 
-
1,775
-
1,775
 
 
 
 
 
 
 
 
 
 
 
 
 
   * Revenue principally recognised over time. Construction contracts are generally completed within the same financial reporting year.
 
Footnotes to revenue disaggregation on pages 16 & 17
(i)      The Rest of Europe principally includes Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland and Ukraine.
 
(ii)     The Rest of World principally includes Australia, Brazil, Canada and the Philippines.
 
(iii)    Americas Materials and Europe Materials both operate vertically integrated businesses, which are founded in resource-backed cement and aggregates assets and which support the manufacture and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Accordingly, for the purpose of disaggregation of revenue we have included certain products together, as this is how management reviews and evaluates this business line.
 
B.    Unsatisfied long-term construction contracts and other performance obligations
 
Revenue yet to be recognised from long-term construction contracts, primarily within our Americas Materials and Europe Materials businesses, amounted to $3,742 million at 31 December 2022 (2021: $3,177 million). The Group has applied the practical expedient set out in IFRS 15 Revenue from Contracts with Customers whereby revenue yet to be recognised on contracts that had an original expected duration of less than one year is not disclosed. The majority of open contracts at 31 December 2022 will close and revenue will be recognised within 12 months of the balance sheet date.
 
 
 
5.    Segment Information
 
Effective 1 January 2023 the Group restructured into two Divisions, CRH Americas and CRH Europe. During the first quarter of 2023, the Group's reportable segments increased from three to the following four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions and Europe Building Solutions. This realignment reflects the way resources are allocated and performance is assessed by the Chief Operating Decision Maker.
 
 
In the Group's financial reporting for 2023 comparative information for 2021 and 2022 will be restated to reflect the changes in reportable segments. The segmental information presented is based on the segment structure as at 31 December 2022 being Americas Materials, Building Products and Europe Materials.
 
 
 
 
 
The change in segment reporting post year end does not have a financial impact on the Group's Consolidated Financial Statements.
 
 
2022
 
2021
 
$m
%
 
$m
%
Revenue
 
 
 
 
 
Continuing operations
 
 
 
 
 
Americas Materials
14,324
43.8
 
12,407
42.5
Building Products
7,823
23.9
 
6,218
21.3
Europe Materials
10,576
32.3
 
10,581
36.2
Total Group from continuing operations
32,723
100.0
 
29,206
100.0
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
Building Products - Building Envelope
645
 
 
1,775
 
Total Group from discontinued operations
645
 
 
1,775
 
 
 
 
 
 
 
EBITDA
 
 
 
 
 
Continuing operations
 
 
 
 
 
Americas Materials
2,748
48.9
 
2,588
51.9
Building Products
1,510
26.9
 
992
19.9
Europe Materials
1,357
24.2
 
1,410
28.2
Total Group from continuing operations
5,615
100.0
 
4,990
100.0
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
Building Products - Building Envelope
131
 
 
360
 
Total Group from discontinued operations
131
 
 
360
 
 
 
 
 
 
 
Depreciation, amortisation and impairment
 
 
 
 
 
Continuing operations
 
 
 
 
 
Americas Materials
839
48.7
 
800
48.2
Building Products
349
20.3
 
263
15.9
Europe Materials
533
31.0
 
596
35.9
Total Group from continuing operations
1,721
100.0
 
1,659
100.0
 
 
 
 
 
 
Group Operating profit
 
 
 
 
 
Continuing operations
 
 
 
 
 
Americas Materials
1,909
49.0
 
1,788
53.7
Building Products
1,161
29.8
 
729
21.9
Europe Materials
824
21.2
 
814
24.4
Total Group from continuing operations
3,894
100.0
 
3,331
100.0
 
 
 
 
 
 
5.    Segment Information - continued
 
 
 
2022
 
2021
 
$m
 
$m
Reconciliation of Group operating profit to profit before tax:
 
 
 
Continuing operations
 
 
 
Group operating profit
3,894
 
3,331
(Loss)/profit on disposals (i)
(49)
 
116
Profit before finance costs
3,845
 
3,447
Finance costs less income
(336)
 
(357)
Other financial expense
(40)
 
(42)
Share of equity accounted investments' profit
-
 
55
Profit before tax from continuing operations
3,469
 
3,103
 
 
 
 
(i)   (Loss)/profit on disposals
 
 
 
Americas Materials
38
 
126
Building Products
3
 
(27)
Europe Materials
(90)
 
17
Total Group from continuing operations
(49)
 
116
 
 
2022
 
2021
 
$m
%
 
$m
%
Total assets
 
 
 
 
 
Americas Materials
17,609
45.8
 
17,064
45.0
Building Products
9,165
23.9
 
8,504
22.4
Europe Materials
11,622
30.3
 
12,367
32.6
Subtotal
38,396
100.0
 
37,935
100.0
 
 
 
 
 
 
Reconciliation to total assets as reported in the Consolidated Balance Sheet:
 
 
 
 
 
Investments accounted for using the equity method
649
 
 
653
 
Other financial assets
14
 
 
12
 
Derivative financial instruments (current and non-current)
42
 
 
136
 
Income tax assets (current and deferred)
151
 
 
151
 
Cash and cash equivalents
5,936
 
 
5,783
 
Total assets as reported in the Consolidated Balance Sheet
45,188
 
 
44,670
 
 
 
 
 
 
 
Total liabilities
 
 
 
 
 
Americas Materials
3,227
33.9
 
3,292
33.0
Building Products
2,045
21.5
 
2,579
25.9
Europe Materials
4,245
44.6
 
4,100
41.1
Subtotal
9,517
100.0
 
9,971
100.0
 
 
 
 
 
 
Reconciliation to total liabilities as reported in the Consolidated Balance Sheet:
 
 
 
 
 
Interest-bearing loans and borrowings (current and non-current)
9,636
 
 
10,487
 
Derivative financial instruments (current and non-current)
128
 
 
14
 
Income tax liabilities (current and deferred)
3,570
 
 
3,284
 
Total liabilities as reported in the Consolidated Balance Sheet
22,851
 
 
23,756
 
 
 
 
 
 
 
 
6.    Earnings per Ordinary Share
 
The computation of basic and diluted earnings per Ordinary Share is set out below:
 
 
2022
 
2021
 
$m
 
$m
Numerator computations
 
 
 
Group profit for the financial year
3,874
 
2,621
Profit attributable to non-controlling interests
(27)
 
(56)
Profit attributable to ordinary equity holders of the Company - numerator for basic/diluted earnings per Ordinary Share
3,847
 
2,565
Profit after tax for the financial year from discontinued operations - attributable to equity holders of the Company
1,190
 
179
Profit attributable to ordinary equity holders of the Company - numerator for basic/diluted earnings per Ordinary Share from continuing operations
2,657
 
2,386
 
 
 
 
 
Number of
 
Number of
 
Shares
 
shares
Denominator computations
 
 
 
Weighted average number of Ordinary Shares (millions) outstanding for the year
758.3
 
780.2
Effect of dilutive potential Ordinary Shares (employee share awards) (millions)
5.8
 
6.6
Denominator for diluted earnings per Ordinary Share
764.1
 
786.8
 
 
 
 
Earnings per Ordinary Share
 
 
 
 - basic
$5.07
 
$3.29
 - diluted
$5.03
 
$3.26
 
 
 
 
Earnings per Ordinary Share from continuing operations
 
 
 
 - basic
$3.50
 
$3.06
 - diluted
$3.48
 
$3.03
 
 
7.    Dividends
 
 
2022
 
2021
Net dividend paid per share
$1.22
 
$1.16
Net dividend declared for the year
$1.27
 
$1.21
Dividend cover - continuing operations
2.8x
 
2.5x
 
The Board is recommending a final dividend of $1.03 per share. This would give a total dividend of $1.27 for the year (2021: $1.21), an increase of 5% over last year.
 
Existing currency elections and currency payment defaults will remain in place unless revoked or otherwise amended by certificated shareholders. Therefore, the final dividend will be paid in euro, Pound Sterling and US Dollar to shareholders in accordance with their existing payment instructions. If no such instructions are in place, the currency for dividend payments will be based on shareholders' addresses on CRH's Share Register, or will, in the case of shares held in the Euroclear Bank system, continue to be paid automatically in euro, unless a currency election is made for the final dividend. Investors holding CREST Depositary Interests (CDIs) should refer to the CREST International Service Description. In respect of the final dividend, the latest date for receipt of currency elections (and DWT exemption forms) is 31 March 2023. Earlier closing dates may apply to holders in Euroclear Bank and in CREST.
 
If shareholders receive dividend payments in euro or Pound Sterling, the exchange rate is expected to be set on Thursday, 20 April 2023.
 
 
 
 
 
 
 
8.    Assets Held for Sale and Discontinued Operations
 
 
A. Profit on disposal of discontinued operations
In April 2022, the Group completed the divestment of its Building Envelope business, formerly part of our Building Products segment. With the exception of our Building Envelope business, no other businesses divested during 2022 are 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 Non-Current Assets Held for Sale and Discontinued Operations.
 
 
 
No businesses met the IFRS 5 held for sale criteria at 31 December 2022.
 
The table below sets out the proceeds and related profit recognised on divestment which were included in profit after tax for the financial year from discontinued operations.
 
 
2022
 
$m
Assets/(liabilities) disposed of at net carrying amount:
 
- non-current assets*
2,016
- cash and cash equivalents
27
- inventories, receivables, payables and provisions
406
- lease liabilities
(338)
- interest-bearing loans and borrowings
(6)
- deferred tax
(42)
- retirement benefit obligations
(14)
Net assets disposed
2,049
Reclassification of currency translation effects on disposal
5
Total
2,054
Proceeds from disposal (net of disposal costs)
3,525
Profit on disposal from discontinued operations
1,471
 
 
Net cash inflow arising on disposal
 
Proceeds from disposal from discontinued operations
3,525
Less: cash and cash equivalents disposed
(27)
Total
3,498
 
 
 
 
*Non-current assets comprise property, plant and equipment, intangible assets and investments accounted for using the equity method.
 
 
 
 
 
 
 
8.    Assets Held for Sale and Discontinued Operations - continued
 
 
B. Results of discontinued operations
The results of the discontinued operations included in the Group profit for the financial year are set out as follows:
 
2022
 
2021
 
$m
 
$m
Revenue
645
 
1,775
Cost of sales (i)
(412)
 
(1,143)
Gross profit
233
 
632
Operating costs (i)
(138)
 
(378)
Operating profit
95
 
254
Profit on disposals
1,471
 
3
Profit before finance costs
1,566
 
257
Finance costs
(6)
 
(18)
Profit before tax
1,560
 
239
Attributable income tax expense (ii)
(370)
 
(60)
Profit after tax for the financial year from discontinued operations
1,190
 
179
 
 
 
 
Profit attributable to:
 
 
 
Equity holders of the Company
1,190
 
179
Profit for the financial year from discontinued operations
1,190
 
179
 
 
 
 
Basic earnings per Ordinary Share from discontinued operations
$1.57
 
$0.23
Diluted earnings per Ordinary Share from discontinued operations
$1.55
 
$0.23
 
 
 
 
Cash flows from discontinued operations
 
 
 
Net cash (outflow)/inflow from operating activities (iii)
(435)
 
234
Net cash inflow/(outflow) from investing activities (iv)
3,446
 
(102)
Net cash outflow from financing activities
(6)
 
(28)
 
(i)     The depreciation and amortisation charge for discontinued operations amounted to $26 million and $10 million respectively
 
(2021: $78 million and $28 million).
 
(ii)    2022 attributable income tax expense includes $347 million relating to the profit on disposal of discontinued operations.
 
(iii)   Includes the corporation tax paid on the sale of discontinued operations.
 
(iv)   Includes the proceeds from the disposal of discontinued operations.
 
 
 
 
 
 
 
9.    Business and Non-Current Asset Disposals
 
 
 
Business disposals
 
Disposal of other non-current assets
 
Total
 
2022
2021
 
2022
2021
 
2022
2021
Continuing operations
$m
$m
 
$m
$m
 
$m
$m
Net assets disposed
321
188
 
65
80
 
386
268
Reclassification of currency translation effects on disposal
(4)
29
 
-
-
 
(4)
29
Total
317
217
 
65
80
 
382
297
Proceeds from disposals (net of disposal costs)
218
295
 
115
118
 
333
413
(Loss)/profit on disposals from continuing operations
(99)
78
 
50
38
 
(49)
116
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
Profit on disposals from discontinued operations (note 8)
1,471
-
 
-
3
 
1,471
3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash inflow arising on disposal
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
Proceeds from disposals from continuing operations
218
295
 
115
118
 
333
413
Less: cash and cash equivalents disposed
(4)
(31)
 
-
-
 
(4)
(31)
Less: deferred proceeds arising on disposal
-
(1)
 
-
-
 
-
(1)
Net cash inflow arising on disposal from continuing operations
214
263
 
115
118
 
329
381
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
Net cash inflow arising on disposal from discontinued operations
3,498
-
 
-
6
 
3,498
6
Total Group net cash inflow arising on disposal
3,712
263
 
115
124
 
3,827
387
 
 
 
 
 
 
 
10.  Net Finance Costs
Continuing operations
 
 
2022
 
2021
 
$m
 
$m
 
 
 
 
Finance costs
401
 
357
Finance income
(65)
 
-
Net other financial expense
40
 
42
Total net finance costs
376
 
399
 
 
 
 
The overall total is analysed as follows:
 
 
 
Net finance costs on interest-bearing loans and borrowings including leases and cash and cash equivalents
337
 
361
Net credit re change in fair value of derivatives and fixed rate debt
(1)
 
(4)
Finance costs less income
336
 
357
Unwinding of discount element of provisions for liabilities
16
 
18
Unwinding of discount applicable to deferred and contingent acquisition consideration
20
 
20
Unwinding of discount applicable to deferred divestment proceeds
(8)
 
(12)
Unwinding of discount applicable to leased mineral reserves
6
 
6
Pension-related finance cost (net) (note 15)
6
 
10
Total net finance costs
376
 
399
 
 
 
11.  Net Debt
 
 
2022
 
2021
 
Book value
Fair
value
 
Book value
Fair
value
 
$m
$m
 
$m
$m
Non-current assets
 
 
 
 
 
Derivative financial instruments
3
3
 
97
97
Current assets
 
 
 
 
 
Cash and cash equivalents
5,936
5,936
 
5,783
5,783
Derivative financial instruments
39
39
 
39
39
Non-current liabilities
 
 
 
 
 
Interest-bearing loans and borrowings (i)
(8,145)
(7,517)
 
(9,938)
(10,786)
Lease liabilities
(1,059)
(1,059)
 
(1,374)
(1,374)
Derivative financial instruments
(77)
(77)
 
-
-
Current liabilities
 
 
 
 
 
Interest-bearing loans and borrowings (i)
(1,491)
(1,484)
 
(549)
(554)
Lease liabilities
(260)
(260)
 
(297)
(297)
Derivative financial instruments
(51)
(51)
 
(14)
(14)
Group net debt
(5,105)
(4,470)
 
(6,253)
(7,106)
 
(i)      Interest-bearing loans and borrowings are Level 2 instruments whose fair value is derived from quoted market prices.
 
 
 
 
 
 
 
 
11.  Net Debt - continued
 
Gross debt, net of derivatives, matures as follows:
 
 
 
 
2022
 
2021
 
$m
 
$m
Within one year
1,763
 
821
Between one and two years
881
 
1,642
Between two and three years
1,403
 
866
Between three and four years
920
 
1,399
Between four and five years
982
 
971
After five years
5,092
 
6,337
Total
11,041
 
12,036
 
Reconciliation of opening to closing net debt:
 
31 December 2022
At 1 January Book value
Cash flow
Movement attributable to acquired companies
Movement attributable to disposed companies
Mark-to-market and other
non-cash adjustments
Translation adjustment
At 31 December Book value
 
$m
$m
$m
$m
$m
$m
$m
Cash and cash equivalents
5,783
393
22
(31)
-
(231)
5,936
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing loans and borrowings
(10,487)
326
(8)
6
159
368
(9,636)
Lease liabilities
(1,671)
249
(107)
342
(189)
57
(1,319)
Derivative financial instruments - financing
122
11
-
-
(194)
(9)
(70)
Liabilities from financing activities
(12,036)
586
(115)
348
(224)
416
(11,025)
Derivative financial instruments - non-financing
-
(58)
-
-
38
4
(16)
Group net debt
(6,253)
921
(93)
317
(186)
189
(5,105)
 
 
 
 
 
 
 
 
The equivalent disclosure for the prior year is as follows:
 
 
 
 
 
 
 
 
31 December 2021
 
 
 
 
 
 
 
Cash and cash equivalents
7,721
(1,617)
7
(31)
-
(297)
5,783
Interest-bearing loans and borrowings
(12,215)
1,183
(3)
-
90
458
(10,487)
Lease liabilities
(1,635)
264
(88)
3
(249)
34
(1,671)
Derivative financial instruments (net)
188
37
-
-
(52)
(51)
122
Group net debt
(5,941)
(133)
(84)
(28)
(211)
144
(6,253)
 
 
Market capitalisation
 
Market capitalisation, calculated as the year end share price multiplied by the number of Ordinary Shares in issue, is as follows:
 
 
 
 
2022
 
2021
 
$m
 
$m
Market capitalisation - Euronext Dublin (i)
29,462
 
40,593
 
(i)      The market capitalisation figure of €27.6 billion (2021: €35.9 billion), based on the euro denominated share price per CRH's listing on Euronext Dublin, was translated to US Dollar using the relevant closing rates as noted in the principal foreign exchange rates table in note 1.
 
 
 
 
 
11.  Net Debt - continued
 
Liquidity information - borrowing facilities
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 undrawn committed facilities figures shown in the table below represent the facilities available to be drawn by the Group at 31 December 2022.
 
 
2022
 
2021
 
$m
 
$m
Within one year
-
 
19
Between three and four years
3,736
 
-
Between four and five years
9
 
3,964
Total
3,745
 
3,983
 
Net debt metrics
The net debt metrics based on net debt as shown in note 11 are as follows:
 
 
 
 
 
 
2022
 
2021
 
 
 
 
Net debt as a percentage of market capitalisation
17%
 
15%
Net debt as a percentage of total equity
23%
 
30%
 
 
 
12.  Future Purchase Commitments for Property, Plant and Equipment
 
 
 
2022
 
2021 (i)
 
$m
 
$m
 
 
 
 
Contracted for but not provided in the financial statements
862
 
628
Authorised by the Directors but not contracted for
530
 
417
 
(i)     Includes contracted for but not provided for and authorised by the Directors but not contracted for commitments of $11 million and $25 million respectively relating to discontinued operations.
 
 
 
 
 
13.  Related Party Transactions
 
Sales to and purchases from joint ventures and associates are as follows:
 
 
     Joint Ventures
 
      Associates
 
2022
 
2021
 
2022
 
2021
 
$m
 
$m
 
$m
 
$m
Continuing operations
 
 
 
 
 
 
 
Sales
192
 
157
 
45
 
42
Purchases
41
 
29
 
20
 
19
 
 
Loans extended by the Group to joint ventures and associates are included in financial assets. 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 in trade and other receivables and trade and other payables respectively in the Consolidated Balance Sheet.
 
 
 
 
 
14.  Business Combinations
 
The acquisitions completed during the year ended 31 December 2022 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:
 
 
Americas Materials:
 
Alabama: North Alabama Paving, Inc. (30 June);
 
Arkansas: Marion County Paving (18 March);
 
Colorado: Granby Sand & Gravel (31 March);
 
Florida: certain assets of Kudzue 3 Trucking, Inc. (11 March);
 
Kentucky: Hinkle Contracting, LLC (13 May);
 
Mississippi: Krystal Gravel, Inc. (23 December);
 
Texas: LD Construction Company and PTSS Investments, LLC (2 December) and Moore Brothers Construction Company (16 December);
 
Utah: Chapman Construction (16 December); and
 
West Virginia: Jefferson Asphalt Products Company (23 September).
 
 
Building Products:
 
Substantial Acquisition: on 8 July, CRH acquired Barrette Outdoor Living, Inc. (Barrette), North America's leading provider of residential fencing and railing solutions headquartered in Middleburg Heights, Ohio, US. The assets acquired are all in the US and are expected to enhance our existing offering of sustainable outdoor living solutions in North America.
 
Americas
 
California: Calstone Company (29 March);
 
Ohio: Normandy Industries, Inc. (21 October);
 
South Carolina: Sterling Sand, LLC (19 October);
 
Texas: certain assets of Rinker Materials (18 April); Soil Mender Products (25 July); and Inwesco, Inc. (12 December); and
 
West Virginia: Grant County Mulch, Inc. (19 December).
 
Other
 
Ireland: RS Sockets Ltd. (15 December); and
 
Poland: certain assets of Libet Company (2 September).
 
 
Europe Materials:
 
Croatia: Thermostone (1 April);
 
Denmark: Confac Holdings A/S (1 April) and Gunderup (1 December);
 
Finland: Terrawise Oy Stone Aggregates (31 May);
 
Poland: Mabau Group (75%, 21 March);
 
Romania: certain assets of SUT-ICIM and Irca SRL (23 February) and Simbeton SRL (29 July); and
 
Slovakia: certain assets of U.S. Steel Košice, s.r.o. (1 January) and certain assets of COLAS Slovakia, a.s. (10 January).
 
 
 
 
 
 
 
 
14.  Business Combinations - continued
        
The identifiable net assets acquired, including adjustments to provisional fair values, were as follows:
 
 
Barrette
Other acquisitions
Total
 
 
2022
2022
2022
2021
ASSETS
$m
$m
$m
$m
Non-current assets
 
 
 
 
Property, plant and equipment
309
597
906
609
Intangible assets (i)
809
178
987
131
Equity accounted investments
-
28
28
-
Total non-current assets
1,118
803
1,921
740
 
 
 
 
 
Current assets
 
 
 
 
Inventories
247
128
375
157
Trade and other receivables (ii)
168
59
227
191
Cash and cash equivalents
8
14
22
7
Total current assets
423
201
624
355
 
 
 
 
 
LIABILITIES
 
 
 
 
Trade and other payables
(148)
(47)
(195)
(143)
Provisions for liabilities
(16)
(3)
(19)
(1)
Lease liabilities
(48)
(59)
(107)
(88)
Interest-bearing loans and borrowings
-
(8)
(8)
(3)
Deferred income tax liabilities
(192)
(55)
(247)
(37)
Total liabilities
(404)
(172)
(576)
(272)
 
 
 
 
 
Total identifiable net assets at fair value
1,137
832
1,969
823
Goodwill arising on acquisition (iii)
774
546
1,320
679
Total consideration
1,911
1,378
3,289
1,502
 
 
 
 
 
Consideration satisfied by:
 
 
 
 
Cash payments
1,911
1,364
3,275
1,501
Deferred consideration (stated at net present cost)
-
10
10
-
Contingent consideration
-
4
4
1
Total consideration
1,911
1,378
3,289
1,502
 
 
 
 
 
Net cash outflow arising on acquisition
 
 
 
 
Cash consideration
1,911
1,364
3,275
1,501
Less: cash and cash equivalents acquired
(8)
(14)
(22)
(7)
Total outflow in the Consolidated Statement of Cash Flows
1,903
1,350
3,253
1,494
 
Footnotes (i), (ii) and (iii) appear on page 29.
 
14.  Business Combinations - continued
 
The acquisition balance sheet presented on the previous page reflects the identifiable net assets acquired in respect of acquisitions completed during 2022, together with adjustments to provisional fair values in respect of acquisitions completed during 2021. The measurement period for a number of acquisitions completed in 2021, closed in 2022 with no material adjustments identified.
 
CRH performs a detailed quantitative and qualitative assessment of each acquisition in order to determine whether it is material for the purposes of separate disclosure under IFRS 3 Business Combinations. The acquisition of Barrette is deemed to be a material acquisition. None of the remaining acquisitions completed during the financial year were considered sufficiently material to warrant separate disclosure of the attributable fair values. Due to the size and scale of the Barrette acquisition, the determination of the fair values of identifiable assets acquired and liabilities assumed as disclosed above are provisional (principally in respect of property, plant and equipment, provisions for liabilities and the associated goodwill and deferred tax aspects). The fair value assigned to identifiable assets and liabilities acquired is based on estimates and assumptions made by management at the time of acquisition. CRH may revise its purchase price allocation during the subsequent reporting window as permitted under IFRS 3.
 
Footnotes to the acquisition balance sheet on page 28
(i)     Marketing-related, customer-related and contract-based intangible assets of $174 million, $594 million and $41 million respectively arose on the acquisition of Barrette. These primarily related to brand names, patents and non-contractual customer relationships. Due to the asset-intensive nature of operations in the Americas Materials and Europe Materials business segments, no significant separately identifiable intangible assets were recognised on business combinations in these segments.
 
(ii)     Trade and other receivables
 
 
Gross contractual amounts due
 
 
Loss allowance
 
 
Fair value
 
 
2022
 
2021
 
 
2022
 
2021
 
 
2022
 
2021
 
 
$m
 
$m
 
 
$m
 
$m
 
 
$m
 
$m
 
Barrette
 
169
 
-
 
 
1
 
-
 
 
168
 
-
 
Other acquisitions
 
60
 
192
 
 
1
 
1
 
 
59
 
191
 
Total
 
229
 
192
 
 
2
 
1
 
 
227
 
191
 
 
 
(iii)    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. $1,289 million of the goodwill recognised in respect of acquisitions completed in 2022 is expected to be deductible for tax purposes (2021: $284 million).
 
 
 
Acquisition-related costs
 
2022
2021
 
$m
$m
Barrette
27
-
 
Other acquisitions
12
13
 
Total
39
13
 
 
The above acquisition-related costs, which exclude post-acquisition integration costs, have been included in operating costs in the Consolidated Income Statement.
 
 
 
 
 
 
14.   Business Combinations - continued
 
 
The following table analyses the 29 acquisitions completed in 2022 (2021: 20 acquisitions) by reportable segment and provides details of the goodwill and consideration figures arising in each of those segments:
 
 
Number of acquisitions
 
Goodwill
 
Consideration
 
2022
 
2021
 
2022
 
2021
 
2022
 
2021
Reportable segments
 
 
 
 
$m
 
$m
 
$m
 
$m
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
Americas Materials
10
 
8
 
172
 
239
 
493
 
694
Building Products
10
 
7
 
1,205
 
417
 
2,652
 
734
Europe Materials
9
 
4
 
34
 
1
 
144
 
17
Total Group from continuing operations
29
 
19
 
1,411
 
657
 
3,289
 
1,445
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Building Products - Building Envelope
-
 
1
 
-
 
17
 
-
 
56
 
 
 
 
 
1,411
 
674
 
3,289
 
1,501
 
 
 
 
 
 
 
 
 
 
 
 
Adjustment to provisional fair value of prior year acquisitions
 
(91)
 
5
 
-
 
1
Total
 
 
 
 
1,320
 
679
 
3,289
 
1,502
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Post-acquisition impact
The post-acquisition impact of acquisitions completed during the year on the Group's profit for the financial year was as follows:
 
 
Barrette
Other acquisitions
Total
 
 
2022
2022
2022
2021
 
$m
$m
$m
$m
Continuing operations
 
 
 
 
Revenue
347
414
761
524
(Loss)/profit before tax for the financial year
(33)
25
(8)
55
 
The revenue and profit 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:
 
 
2022
acquisitions
CRH Group
excluding 2022
acquisitions
Consolidated
Group including
acquisitions
 
 
 
$m
$m
$m
Revenue
1,730
31,962
33,692
Profit before tax for the financial year
51
3,477
3,528
 
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. Development updates, giving details of acquisitions which do not require separate disclosure on the grounds of materiality, are published periodically.
 
 
 
 
 
 
15.  Retirement Benefit Obligations
 
         The Group operates either defined benefit or defined contribution pension schemes in all of its principal operating areas.
 
Financial assumptions - scheme liabilities
The major long-term assumptions used by the Group's actuaries in the computation of scheme liabilities and post-retirement healthcare obligations are as follows:
 
    Eurozone
 
      United States
    and Canada
 
      Switzerland
 
2022
2021
 
2022
2021
 
2022
2021
 
%
%
 
%
%
 
%
%
Rate of increase in:
 
 
 
 
 
 
 
 
- salaries
3.30
2.92
 
3.00
3.03
 
2.50
1.25
- pensions in payment
2.10
1.90
 
-
-
 
-
-
Inflation
2.30
1.90
 
2.10
2.00
 
2.00
0.75
Discount rate
4.20
1.43
 
5.20
2.82
 
2.20
0.30
Medical cost trend rate
n/a
n/a
 
1.87
5.91
 
n/a
n/a
 
The following table provides a reconciliation of scheme assets (at bid value) and the actuarial value of scheme liabilities (using the aforementioned assumptions):
 
 
Year ended 31 December 2022
 
Assets
 
Liabilities
 
Total
 
Impact of asset ceiling
 
Net Pension Asset
 
$m
 
$m
 
$m
 
$m
 
$m
 
 
 
 
 
 
 
 
 
 
At 1 January
3,174
 
(3,483)
 
(309)
 
-
 
(309)
Administration expenses
(5)
 
-
 
(5)
 
-
 
(5)
Current service cost
-
 
(46)
 
(46)
 
-
 
(46)
Past service credit (net)
-
 
1
 
1
 
-
 
1
Interest income on scheme assets
52
 
-
 
52
 
-
 
52
Interest cost on scheme liabilities
-
 
(58)
 
(58)
 
-
 
(58)
Disposals
-
 
25
 
25
 
-
 
25
Remeasurement adjustments:
 
 
 
 
 
 
 
 
 
-return on scheme assets excluding interest income
(534)
 
-
 
(534)
 
-
 
(534)
-experience variations
-
 
(48)
 
(48)
 
-
 
(48)
-actuarial gain from changes in financial assumptions
-
 
951
 
951
 
-
 
951
-actuarial loss from changes in demographic assumptions
-
 
(2)
 
(2)
 
-
 
(2)
-impact of asset ceiling
-
 
-
 
-
 
(88)
 
(88)
Employer contributions paid
35
 
-
 
35
 
-
 
35
Contributions paid by plan participants
7
 
(7)
 
-
 
-
 
-
Benefit and settlement payments
(142)
 
142
 
-
 
-
 
-
Translation adjustment
(144)
 
154
 
10
 
-
 
10
At 31 December (i)
2,443
 
(2,371)
 
72
 
(88)
 
(16)
Related deferred income tax asset
 
 
 
 
 
 
 
 
22
Net pension asset
 
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
 
 
 
(i)   Reconciliation to Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
Retirement benefit assets
 
 
 
 
 
 
 
 
261
Retirement benefit obligations
 
 
 
 
 
 
 
 
(277)
Net pension deficit
 
 
 
 
 
 
 
 
(16)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.  Retirement Benefit Obligations - continued
 
 
 
 
 
 
Year ended 31 December 2021
 
 
 
 
 
Assets
 
Liabilities
 
Net Pension Liability
 
 
 
 
 
$m
 
$m
 
$m
 
 
 
 
 
 
 
 
 
 
At 1 January
 
 
 
 
3,321
 
(3,877)
 
(556)
Administration expenses
 
 
 
 
(4)
 
-
 
(4)
Current service cost
 
 
 
 
-
 
(55)
 
(55)
Past service credit (net)
 
 
 
 
-
 
3
 
3
Loss on settlements
 
 
 
 
-
 
(6)
 
(6)
Interest income on scheme assets
 
 
 
 
46
 
-
 
46
Interest cost on scheme liabilities
 
 
 
 
-
 
(56)
 
(56)
Disposals
 
 
 
 
-
 
1
 
1
Remeasurement adjustments:
 
 
 
 
 
 
 
 
 
-return on scheme assets excluding interest income
 
 
 
 
165
 
-
 
165
-experience variations
 
 
 
 
-
 
(7)
 
(7)
-actuarial gain from changes in financial assumptions
 
 
 
 
-
 
70
 
70
-actuarial gain from changes in demographic assumptions
 
 
 
 
-
 
36
 
36
Employer contributions paid
 
 
 
 
43
 
-
 
43
Contributions paid by plan participants
 
 
 
 
7
 
(7)
 
-
Benefit and settlement payments
 
 
 
 
(258)
 
258
 
-
Translation adjustment
 
 
 
 
(146)
 
157
 
11
At 31 December (i)
 
 
 
 
3,174
 
(3,483)
 
(309)
Related deferred income tax asset
 
 
 
 
 
 
 
 
89
Net pension liability
 
 
 
 
 
 
 
 
(220)
 
 
 
 
 
 
 
 
 
 
(i)   Reconciliation to Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
Retirement benefit assets
 
 
 
 
 
 
 
 
166
Retirement benefit obligations
 
 
 
 
 
 
 
 
(475)
Net pension deficit
 
 
 
 
 
 
 
 
(309)
 
 
 
 
16.  Statutory Accounts and Audit Opinion
 
The financial information presented in this report does not constitute the statutory financial statements for the purposes of Chapter 4 of Part 6 of the Companies Act 2014. Full statutory financial statements for the year ended 31 December 2022 prepared in accordance with IFRS, upon which the Auditor has given an unqualified audit report, have not yet been filed with the Registrar of Companies. Full statutory financial statements for the year ended 31 December 2021, prepared in accordance with IFRS and containing an unqualified audit report, have been delivered to the Registrar of Companies.
 
17.  Annual Report and Form 20-F and Annual General Meeting (AGM)
 
The 2022 Annual Report and Form 20-F is expected to be published on the CRH website, www.crh.com, on 10 March 2023 and posted on 29 March 2023 to those shareholders who have requested a paper copy. A paper copy of the Annual Report and Form 20-F may be obtained at the Company's registered office from 29 March 2023.
 
The Company's AGM is scheduled to be held at 11:00 a.m. on 27 April 2023. The AGM Notice is expected to be posted to shareholders on 29 March 2023.
 
18.  Board Approval
 
This announcement was approved by the Board of Directors of CRH plc on 1 March 2023.
 
 
 
Glossary of Alternative Performance Measures
 
CRH uses a number of alternative performance measures (APMs) to monitor financial performance. These measures are referred to throughout the discussion of our reported financial position and operating performance and are measures which are regularly reviewed by CRH management.
 
The APMs as summarised below should not be viewed in isolation or as an alternative to the equivalent GAAP measure.
 
The APMs may not be uniformly defined by all companies and accordingly they may not be directly comparable with similarly titled measures and disclosures by other companies. Certain information presented is derived from amounts calculated in accordance with IFRS but is not itself an expressly permitted GAAP measure.
 
EBITDA
EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Group's share of equity accounted investments' profit after tax. It is quoted by management, in conjunction with other GAAP and non-GAAP financial measures, 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 is 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 Maker6 (Group Chief Executive, Chief Financial Officer and Chief Operating Officer). EBITDA margin is calculated by expressing EBITDA as a percentage of sales.
 
Operating profit is defined as earnings before interest, taxes, profit on disposals and the Group's share of equity accounted investments' profit after tax.
 
A reconciliation of Group profit to EBITDA is presented below.
 
 
Continuing operations
 
2022
 
2021
 
$m
 
$m
 
 
 
 
Group profit for the financial year
2,684
 
2,442
Income tax expense
785
 
661
Profit before tax
3,469
 
3,103
Share of equity accounted investments' profit
-
 
(55)
Other financial expense
40
 
42
Finance costs less income
336
 
357
Profit before finance costs
3,845
 
3,447
Loss/(profit) on disposals
49
 
(116)
Group operating profit
3,894
 
3,331
Depreciation charge
1,618
 
1,613
Amortisation of intangibles
103
 
46
EBITDA
5,615
 
4,990
 
 
 
6 Effective 1 January 2022, following the appointment of the Chief Operating Officer and a resultant change in the reporting line of the "segment managers" as outlined in IFRS 8, the Group has determined that the Group Chief Executive, Chief Financial Officer and Chief Operating Officer (formerly the Group Chief Executive and Chief Financial Officer) together fulfil the role of Chief Operating Decision Maker (as defined in IFRS 8). This did not result in any change to the Group's operating segments.
 
 
 
 
 
Glossary of Alternative Performance Measures - continued
 
RONA
Return on Net Assets is a key internal pre-tax and pre-non-cash-impairment measure of operating performance throughout the CRH Group and can be used by management and investors to measure the relative use of assets between CRH's business segments and to compare to other businesses. The metric measures management's ability to generate profits from the net assets required to support that business, focusing on both profit maximisation and the maintenance of an efficient asset base; it encourages effective fixed asset maintenance programmes, good decisions regarding expenditure on property, plant and equipment and the timely disposal of surplus assets, and also supports the effective management of the Group's working capital base.
 
RONA is calculated by expressing total Group operating profit excluding non-cash-impairment charges as a percentage of average net assets. Net assets comprise total assets by segment (including assets held for sale) less total liabilities by segment (excluding lease liabilities and including liabilities associated with assets classified as held for sale) as shown in note 5 on page 19, and excludes equity accounted investments and other financial assets, net debt, and tax assets and liabilities. The average net assets for the year is the simple average of the opening and closing balance sheet figures.
 
The calculation of RONA is presented below:
 
 
2022
 
2021
 
$m
 
$m
 
 
 
 
Group operating profit - continuing operations
3,894
 
3,331
Group operating profit - discontinued operations
95
 
254
Group operating profit (numerator for RONA computation)
3,989
 
3,585
 
 
 
 
 
 
 
 
Current year
 
 
 
Segment assets (i)
38,396
 
37,935
Segment liabilities (i)
(9,517)
 
(9,971)
Group segment net assets
28,879
 
27,964
Lease liabilities (ii)
1,319
 
1,671
Group segment net assets excluding lease liabilities
30,198
 
29,635
 
 
 
 
Prior year
 
 
 
Segment assets (i)
37,935
 
36,218
Segment liabilities (i)
(9,971)
 
(9,136)
Group segment net assets
27,964
 
27,082
Lease liabilities (ii)
1,671
 
1,635
Group segment net assets excluding lease liabilities
29,635
 
28,717
 
 
 
 
 
 
 
 
Average net assets (denominator for RONA computation)
29,917
 
29,176
RONA
13.3%
 
12.3%
 
 
 
 
 
(i)      Segment assets and liabilities as disclosed in note 5 on page 19.
 
(ii)     Segment liabilities include lease liabilities which are debt in nature and are therefore adjusted for in arriving at the calculation of Group segment net assets for the calculation of RONA. Segment lease liabilities at 31 December 2022 amounted to: Americas Materials $393 million (2021: $381 million), Building Products $468 million (2021: $773 million) and Europe Materials $458 million (2021: $517 million).
 
 
 
 
 
 
Glossary of Alternative Performance Measures - continued
 
Net Debt and Net Debt/EBITDA
Net debt is used by management as it gives additional insight into the Group's current debt situation less available cash. 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, lease liabilities, cash and cash equivalents and current and non-current derivative financial instruments (net).
 
Net Debt/EBITDA is monitored by management and is useful to investors in assessing the Company's level of indebtedness relative to its profitability. It is the ratio of Net Debt to EBITDA and is calculated below:
 
 
2022
 
2021
 
$m
 
$m
Net debt
 
 
 
Cash and cash equivalents (i)
5,936
 
5,783
Interest-bearing loans and borrowings (i)
(9,636)
 
(10,487)
Lease liabilities (i)
(1,319)
 
(1,671)
Derivative financial instruments (net) (i)
(86)
 
122
Group net debt
(5,105)
 
(6,253)
 
 
 
 
EBITDA - from continuing operations
5,615
 
4,990
 
 
 
 
 
Times
 
Times
Net debt divided by EBITDA - from continuing operations
0.9
 
1.3
 
 
 
 
 
(i)      These items appear in note 11 on page 24.
 
Glossary of Alternative Performance Measures - continued
 
Organic Revenue, Organic Operating Profit and Organic EBITDA
The terms 'like-for-like' (LFL) and 'organic' are used interchangeably throughout this report.
 
Because of the impact of acquisitions, divestments, exchange translation and other non-recurring items on reported results each year, the Group uses organic revenue, organic operating profit and organic EBITDA as additional performance indicators to assess performance of pre-existing operations each year.
 
Organic revenue, organic operating profit and organic EBITDA are arrived at by excluding the incremental revenue, operating profit and EBITDA contributions from current and prior year acquisitions and divestments, the impact of exchange translation and the impact of any non-recurring items. Organic EBITDA margin is calculated by expressing organic EBITDA as a percentage of organic revenue.
 
In the Business Performance review on pages 1 to 7, changes in organic revenue, organic operating profit and organic EBITDA are presented as additional measures of revenue, operating profit and EBITDA to provide a greater understanding of the performance of the Group. A reconciliation of the changes in organic revenue, organic operating profit and organic EBITDA to the changes in total revenue, operating profit and EBITDA 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 3.
 
 
 
 
 
Principal Risks and Uncertainties
 
Under Section 327(1)(b) of the Companies Act 2014 and Regulation 5(4)(c)(ii) of the Transparency (Directive 2004/109/EC) Regulations 2007, the Group is required to give a description of the principal risks and uncertainties which it faces. These risks and uncertainties reflect the international scope of the Group's operations and the Group's decentralised structure. During the course of 2023, new risks and uncertainties may materialise attributable to changes in markets, regulatory environments and other factors and existing risks and uncertainties may become less relevant.
 
Principal Strategic Risks and Uncertainties
Industry cyclicality and economic conditions: Construction activity, and therefore demand for the Group's products, is inherently cyclical and influenced by multiple factors, including global and national economic circumstances (particularly those affecting the infrastructure and construction markets), monetary policy, consumer sentiment, swings in fuel and other input costs, and weather conditions that may disrupt outdoor construction activity.
 
People management: The Group may not achieve its strategic objectives if it is not successful in attracting, engaging, retaining and developing employees, planning for leadership succession, developing a diverse and inclusive workforce, and building constructive relationships with collective representation groups.
 
Commodity products and substitution: Many of the Group's products are commodities that face strong volume and price competition. Such products may also face competition from substitute products, including new products, that the Group does not produce. The Group must maintain strong customer relationships to ensure it can respond to changing consumer preferences and approaches to construction. Failure to differentiate and innovate could lead to market share decline, thus adversely impacting financial performance.
 
Portfolio management: The Group engages in acquisition and divestment activity as part of active portfolio management which presents risks around due diligence, execution and integration of assets. Additionally, the Group may be liable for liabilities of companies it has acquired or divested. Failure to efficiently identify and execute deals may limit the Group's growth potential and impact financial performance.
 
Public policies and geopolitics: Adverse public policy, economic, social and political situations in any country in which the Group operates could lead to health and safety risks for the Group's people, a fall in demand for the Group's products, business interruption, restrictions on repatriation of earnings or a loss of plant access.
 
Strategic mineral reserves: Appropriate reserves are increasingly scarce, and licences and permits required for operations are becoming harder to secure. Numerous uncertainties are inherent in estimating reserves and projecting production rates of the minerals used in the Group's products. Failure of the Group to plan for reserve depletion and secure or maintain permits may result in operation stoppages, adversely impacting financial performance.
 
Principal Operational Risks and Uncertainties
Climate change and policy: The impact of climate change may adversely affect the Group's operations and cost base and the stability of markets in which the Group operates. Risks related to climate change that could affect the Group's operations and financial performance include both physical risks (such as acute and chronic changes in weather) and transitional risks (such as technological development, policy and regulation change and market and economic responses).
 
Information technology and cyber security: The Group is dependent on information and operational technology systems (including those for which third-parties are in whole or in part responsible) to support its business activities. Security incidents and cyber-attacks are becoming increasingly sophisticated, and our systems for protecting our assets and data against cyber security risks may be insufficient. Security breaches, IT interruptions or data loss could result in significant business disruption, loss of production, reputational damage and/or regulatory penalties.
 
 
Health and safety performance: The Group's businesses operate in an industry with inherent health and safety risks, including operation of heavy vehicles, working at height, and use of mechanised processes. Failure to ensure safe workplaces could result in a deterioration in the Group's safety performance and related adverse regulatory action or legal liability. Health and safety incidents could significantly impact the Group's operational and financial performance, as well as its reputation.
 
Sustainability and corporate social responsibility: The nature of the Group's activities poses certain environmental and social risks, which are also subject to an evolving regulatory framework and changing societal expectations. Failure to embed sustainability principles within the Group's businesses and strategy may result in non-compliance with relevant regulations, standards and best practices and lead to adverse stakeholder sentiment and reduced financial performance.
 
 
Supply chain continuity: The Group must reliably and economically source various raw materials, equipment and other inputs from various third-party suppliers and then transport finished products to satisfy customer demands and meet contractual requirements. Our ability to balance maintaining resilient supply chains with optimising our working capital and inventory levels is critical to the continuity and strong financial returns of our operations. Failure to manage any material disruption in our supply chains could adversely impact our ability to service our customers and result in a deterioration in operational and/or financial performance.
 
 
 
 
Principal Risks and Uncertainties - continued
 
 
Principal Compliance Risks and Uncertainties
Laws, regulations and business conduct: The Group is subject to a wide variety of local and international laws and regulations. There can be no assurance that the Group's policies and procedures afford adequate protection against compliance failures or other fraudulent and/or corrupt activities. Potential breaches of local and international laws and regulations could result in litigation or investigations, the imposition of significant fines, sanctions, adverse operational impact (to include an inability to operate in key markets/debarment) and reputational damage.
 
Principal Financial and Reporting Risks and Uncertainties
Taxation charge and balance sheet provisioning: The Group is exposed to uncertainties stemming from governmental actions in respect of taxes paid or payable in the future in all jurisdictions of operation. In addition, various assumptions are made in the computation of the overall tax charge and in balance sheet provisions which may need to be adjusted over time. Changes in tax regimes or assessment of additional tax liabilities in future tax audits could result in incremental tax liabilities which could have a material adverse effect on cash flows and the financial results of operations.
 
 
Financial instruments: The Group uses financial instruments throughout its businesses giving rise to interest rate and leverage, foreign currency, counterparty, credit rating and liquidity risks. A downgrade of the Group's credit ratings may give rise to increases in future funding costs and may impair the Group's ability to raise funds on acceptable terms. In addition, insolvency of the financial institutions with which the Group conducts business may adversely impact the Group's financial position.
 
Goodwill impairment: Significant under performance in any of the Group's major cash-generating units or the divestment of businesses in the future may give rise to a material write-down of goodwill. While a non-cash item, a material write-down of goodwill could have a substantial impact on the Group's income and equity.
 
Foreign currency translation: The principal foreign exchange risks to which the Consolidated Financial Statements are exposed pertain to (i) adverse movements in reported results when translated into the reporting currency; and (ii) declines in the reporting currency value of net investments which are denominated in a wide basket of currencies other than the reporting currency. Adverse changes in the exchange rates could negatively affect retained earnings.
 
 
 
 
 
Disclaimer / 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 statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations, business, viability and future performance of CRH and certain of the plans and objectives of CRH, including but not limited to the statements under: "Key Highlights", regarding the pipeline of opportunities and future value creation; the Chief Executive's quote, regarding future growth opportunities and value creation; "Listing Considerations" regarding the proposed transition to a US primary listing, the benefits of such transition and our expectations regarding growth in the US market; "Sustainability", regarding the Group's decarbonisation targets, expansion of sustainable product offerings and establishment of CRH Ventures; "Trading Outlook", regarding expectations for demand, sales volumes, pricing, market trends, government funding, onshoring and macroeconomic conditions, including interest rates and inflation; "Dividend", regarding the timing and amount of dividend payments, as well as plans and expectations regarding the Group's progressive dividend policy; "Share Buyback Programme", regarding the timing and amount of share buybacks; our intent to increase our share buyback programme, our outlook for cash generation, our progressive dividend policy and our credit rating; "Balance Sheet and Liquidity", with respect to our belief that the Group has sufficient cash balances to meet all maturing debt obligations for the next 5 years; "Annual Report and Form 20-F and Annual General Meeting (AGM)", regarding timing of the AGM and the publication of the Group's 2022 Annual Report and Form 20-F; and "Principal Risks and Uncertainties", regarding the nature and magnitude of risks and uncertainties facing the Group.
 
 
These forward-looking statements may generally, but not always, be identified by the use of words such as "will", "anticipates", "should", "could", "would", "targets", "aims", "may", "continues", "expects", "is expected to", "is likely to," "estimates", "believes", "intends," "plans," "objective," or similar expressions. These forward-looking statements include all matters that are not historical facts or matters of fact at the date of this document.
 
 
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 factors: economic and financial conditions, including increased interest rates, inflation, price volatility and/or labour and materials shortages in countries and regions where we operate; the pace of growth 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, including in relation to climate change and sustainability; the impact of unfavourable weather, including due to climate change; our ability to successfully develop and integrate sustainable solutions into our business and investor and/or consumer sentiment regarding the importance of sustainable practices and products; approval or allocation of funding for infrastructure programmes; adverse political developments in various countries and regions, including war and acts of terrorism; failure to completely or successfully integrate acquisitions; indirect and direct effects of the COVID-19 pandemic; cyber-attacks, sabotage or other incidents and their direct or indirect effects on our business; and the specific factors identified in the section entitled "Principal Risks and Uncertainties" herein and in the section entitled "Risk Factors" in our 2021 Annual Report on Form 20-F as filed with the US Securities and Exchange Commission. You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. The Company expressly disclaims any obligation or undertaking to publicly update or revise these forward-looking statements other than as required by applicable law. The forward-looking statements in this document do not constitute reports or statements published in compliance with any of Regulations 6 to 8 of the Transparency (Directive 2004/109/EC) Regulations 2007 (as amended).
 
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (including as it forms part of UK domestic law). For the purposes of Article 2 of Commission Implementing Regulation (EU) 2016/1055, the person responsible for arranging for the release of this announcement on behalf of CRH plc is Jim Mintern, Chief Financial Officer.  The date and time of this statement is the same as the date and time that it has been communicated to the media.
 
 
 
Appendix 1    2023 Organisational Structure
 
 
Americas
 
Europe
Pro forma FY22 $ million
Sales
EBITDA
 
Sales
EBITDA
Materials Solutions
14,324
 
2,748
 
 
9,349
 
1,246
 
   Essential Materials
4,160
 
 
 
4,625
 
 
   Road Solutions
10,164
 
 
 
4,724
 
 
 
 
 
 
 
 
Building Solutions
6,188
 
1,255
 
 
2,862
 
366
 
   Building & Infrastructure Solutions
2,379
 
 
 
2,252
 
 
   Outdoor Living Solutions
3,809
 
 
 
610
 
 
 
 
 
 
 
 
Sub-total
20,512
 
4,003
 
 
12,211
 
1,612
 
Group
 
 
 
32,723
 
5,615
 
 
 
 
 
 
 
SIGNATURE
 
 
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
CRH public limited company
 
 
(Registrant)
 
 
 
Date 2 March 2023
 
 
 
By:___/s/Neil Colgan___
 
 
N.Colgan
 
 
Company Secretary