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Share Name Share Symbol Market Type Share ISIN Share Description
Crh Plc LSE:CRH London Ordinary Share IE0001827041 ORD EUR 0.32
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -3.00 -0.09% 3,190.00 3,197.00 3,199.00 3,234.00 3,176.00 3,212.00 862,236 16:35:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 21,265.1 1,789.8 203.7 15.4 25,041

CRH PLC 2020 Interim Results

20/08/2020 7:00am

UK Regulatory (RNS & others)


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CRH PLC

20 August 2020

2020 Interim Results

Key Highlights

   --    Health & safety remains our number one priority 
   --    Robust performance in a challenging environment 
   --    Decisive reaction to evolving market backdrop 
   --    EBITDA and margin ahead despite lower sales 
   --    Record cash generation; further underpinning financial strength & flexibility 
   --    $3.8bn improvement in net debt position; $10bn of available liquidity 
   --    Continued dividend delivery; interim dividend in line with prior year 
 
            H1 Summary Financials               2020                  LFL 
            Sales Revenue                       $12.2bn               -3% 
            EBITDA                              $1.6bn                +2% 
            EBITDA Margin                       13.0%                 +70bps 
            Operating Cash Flow                 $1.0bn                +$0.7bn 
 
   --    Q3 EBITDA is expected to be in line with prior year 
   --    Limited visibility for Q4 and into 2021 
   --    Focused on continuing to improve profitability, margins & cash 

Albert Manifold, Chief Executive, said today:

"Our first-half performance is testament to the hard work and dedication of all our people during a very challenging and uncertain period. As ever, health and safety is our number one priority and our primary focus is to provide a safe working environment for all of our employees. As a Group we took swift and comprehensive action in response to the COVID-19 crisis, and our ability to flex our cost base and deliver improved profitability, margins and cash generation in a rapidly evolving environment demonstrates the strength and resilience of our business. The outlook for the rest of the year and into 2021 remains uncertain and is dependent on an improving health situation across our markets."

Announced Thursday, 20 August 2020

2020 Interim Results

Health & Safety

The health and safety of our people remains our number one priority and our approach to workplace safety is uncompromising in our response to the COVID-19 pandemic. In this regard, our primary focus is to ensure that we provide a safe working environment for our employees, contractors and customers, enabling them to carry out their activities in accordance with the various health and safety protocols currently in place across our markets.

Trading Overview

The global COVID-19 pandemic had a material impact across the construction markets in which we operate. First-half sales for the Group were 5% behind, with like-for-like (1) sales 3% behind the first half of 2019, as a positive performance in the first quarter was followed by significant disruption in the second quarter.

-- First-half like-for-like sales for our Americas Materials operations were 1% behind 2019 as the impact of COVID-19 related shutdowns in our North region was partly offset by strong demand in our West region, which experienced more favourable weather conditions than prior year, and improved pricing.

-- In Europe Materials, a solid start to the year was offset by the impact of COVID-19 related government restrictions across a number of key markets in Europe and in Asia. As a result, sales in the first half were down 11% on a like-for-like basis against the same period in 2019.

-- Like-for-like sales in Building Products were 2% ahead of 2019. Strong residential repair, maintenance & improvement (RMI) demand in North America resulted in positive volumes together with pricing progress across most platforms. This was partly offset by the impact of COVID-19 restrictions on a number of our operations in Europe and North America, particularly those serving the non-residential construction sector.

With a strong focus on cost rationalisation to mitigate the financial impacts of the pandemic, EBITDA of $1.59 billion was slightly behind 2019 (H1 2019: $1.62 billion) and was impacted by $65 million of one-off costs primarily due to COVID-19 related restructuring items. On a like-for-like basis Group EBITDA was 2% ahead of 2019, while the like-for-like EBITDA margin increased 70bps.

-- Solid price progression, good cost control and lower energy costs resulted in like-for-like EBITDA in Americas Materials up 20%.

-- In Europe Materials, like-for-like EBITDA was 28% behind primarily reflecting the significant impact of COVID-19 restrictions in the United Kingdom (UK), other Western European markets and the Philippines.

-- Strong operating leverage on increased sales in Building Products, reflected good commercial discipline, cost rationalisation and ongoing profit improvement initiatives. Like-for-like EBITDA was 11% ahead.

First-half profit before tax was $518 million, compared with a profit of $717 million in the first half of 2019 primarily reflecting lower profit on divestments compared with the first half of 2019. Note 2 on page 18 analyses the key components of the first-half 2020 performance.

Mitigating Actions

In response to the COVID-19 crisis, the Group took immediate and decisive actions to right-size our cost base in line with evolving demand levels. These actions included:

   --      Suspension of all non-essential and discretionary expenditure; 
   --      $0.2 billion reduction in fixed costs; 
   --      $0.8 billion improvement in working capital outflow; 
   --      $0.2 billion reduction in capital expenditure; and 
   --      Consolidation of operating locations to adapt to lower levels of activity. 

The Group continued to support our businesses by investing in operational improvements and capacity increases to serve growing demand in markets which were less affected by pandemic restrictions.

Outlook

The near-term outlook for economic and construction activity across our markets remains uncertain and is dependent on an improving health situation. Based on recent trading trends we expect like-for-like sales in the third quarter to be slightly behind the same period in 2019, with Americas Materials slightly behind, Building Products broadly in line, while Europe Materials is expected to be behind prior year levels. Overall EBITDA for the third quarter is expected to be in line with the third quarter in 2019. There is limited visibility for the fourth quarter of the year and as a result the Group is not in a position to provide full-year guidance at this time. The longer-term prospects for CRH remain positive, benefiting from significant financial strength and resilience together with a portfolio of high-quality assets in attractive markets.

[1] See pages 35 to 37 for glossary of alternative performance measures (including EBITDA, like-for-like (LFL)/organic and Net Debt/EBITDA) used throughout this report. Operating cash flow is net cash inflow from operating activities as reported in the Condensed Consolidated Statement of Cash Flows on page 14.

Americas Materials

 
                                               Analysis of change 
===============  ======  ==============================================================  ================= 
 $ million         2019   Exchange   Acquisitions   Divestments   One-offs(1)   Organic    2020   % change 
===============  ======  =========  =============  ============  ============  ========  ======  ========= 
 Sales revenue    4,533        -21            +22           -20             -       -35   4,479        -1% 
 EBITDA             567         +1             +4            +1           -21      +115     667       +18% 
 Operating 
  profit            189         +4             +1            +2           -21      +114     289       +53% 
 EBITDA/sales     12.5%                                                                   14.9% 
 Operating 
  profit/sales     4.2%                                                                    6.5% 
===============  ======  =========  =============  ============  ============  ========  ======  ========= 
 

(1) One-offs primarily due to COVID-19 related restructuring costs

Against the backdrop of regional variations in pandemic restrictions and generally more favourable weather conditions than prior year, Americas Materials reported first-half like-for-like sales 1% behind 2019. Despite the modest decline in sales, like-for-like operating profit was 59% ahead of 2019, as price progression, lower energy costs and strong cost control offset volume challenges. As a result, margins increased compared with the first half of 2019. The reduction in sales was primarily driven by COVID-19 restrictions in the second quarter which impacted volumes across all lines of business particularly in our Northern regions of Quebec, New York, Pennsylvania and Washington following a strong first quarter performance; however good like-for-like sales growth in all products in our West region was experienced due to strong demand, solid backlogs and mild weather.

Aggregates

Total and like-for-like aggregates volumes were in line with 2019. Strong demand in West was offset by lower activity in North which was impacted by COVID-19 restrictions and in South due to unfavourable weather. Total and like-for-like prices increased by 2%, with mid-single digit increases in North and South and flat pricing in West, influenced by sales mix, which resulted in good margin expansion overall.

Asphalt

A reduction in asphalt volumes in the second quarter, as higher volumes in West were unable to offset volume challenges in North and South, resulted in first-half total and like-for-like volumes 5% behind 2019. Average prices were flat however margins expanded benefiting from lower liquid asphalt costs, good cost control and operational efficiencies.

Readymixed Concrete

Readymixed concrete volumes were 4% behind 2019 on a like-for-like basis with strong demand in certain areas in West offset by lower volumes in North and South; overall average prices increased 6% compared with same period in 2019. Strong price increases were experienced particularly in our North and West regions supported by commercial excellence initiatives.

Paving and Construction Services

Paving and construction services revenues were 4% behind the first half of 2019 on a total and like-for-like basis with mixed activity levels across our regions. Profitability benefited from higher margin projects in our South region.

Cement

Sales volumes in the United States (US) were 4% ahead of 2019 on a total and like-for-like basis, as strong volume trends in West supported by growth in our downstream businesses drove performance. Strong price realisation across all markets, operational improvements and synergy delivery resulted in improved operating profits.

Operations in Canada were impacted by COVID-19 related lockdown measures from the beginning of April. The timing and impact of restrictions varied across regions with volumes behind prior year. Prices were ahead of prior year with all regions showing positive or flat prices.

Demand for cement in Brazil has been resilient to the impacts of the pandemic and volumes and prices were ahead of prior year.

Europe Materials

 
                                           Analysis of change 
===============  ======================================================================  ================= 
 $ million         2019   Exchange   Acquisitions   Divestments   One-offs(1)   Organic    2020   % change 
===============  ======  =========  =============  ============  ============  ========  ======  ========= 
 Sales revenue    4,615       -103            +35             -             -      -477   4,070       -12% 
 EBITDA             521        -10             +4             -           -32      -145     338       -35% 
 Operating 
  profit            236         -5              -             -           -32      -137      62       -74% 
 EBITDA/sales     11.3%                                                                    8.3% 
 Operating 
  profit/sales     5.1%                                                                    1.5% 
===============  ======  =========  =============  ============  ============  ========  ======  ========= 
 

(1) One-offs primarily due to COVID-19 related restructuring costs

Despite a strong start to the year, Europe Materials like-for-like sales and like-for-like operating profit fell by 11% and 59% respectively, reflecting the impact of site closures from mid-March to late-May as a result of COVID-19 in the UK, Ireland, France and the Philippines, in particular. Germany, Switzerland, the Benelux and most of Eastern Europe were less impacted as construction activity continued and in certain cases was boosted by government projects and increased local demand.

UK

Widespread plant shutdowns in the UK during March, April and May as a result of COVID-19 resulted in volumes finishing behind in all products compared to 2019 with aggregates volumes showing the most resilience and readymixed concrete being impacted the most. Favourable cement and lime pricing and cost savings did not compensate for the lower volumes and sales and operating profit in the UK finished well behind the first half of 2019.

Western Europe

Construction in Ireland was severely impacted by government restrictions in response to COVID-19 with volumes in all products behind prior year. Pricing remained resilient with improvements on prior year and, despite a significant pick-up in demand in June, sales and operating profit for the first half of the year finished behind 2019. In France , volumes were down across the materials businesses due to the impact of COVID-19 lockdowns. Price improvements, strong volumes in our precast business at the beginning of the year and stringent cost control partly offset the impacts on sales and operating profit, which finished behind 2019. Sales in the Benelux were ahead of 2019 reflecting higher volumes in the Dutch structural business and robust pricing across all products. This was only partly offset by lower volumes across the materials businesses from the COVID-19 related closures of construction sites in Belgium. Strong pricing, combined with cost savings initiatives resulted in operating profit ahead of the first half of 2019. In Denmark, like-for-like sales and operating profit were behind 2019 due to pressure on volumes in our structural business. The continued positive impact of project activity on aggregates volumes in Finland , improved pricing on solid cement volumes and unusually mild weather in the first quarter of 2020 resulted in increased sales and operating profit despite a slowdown in the residential sector and lower volumes in readymixed concrete. In Switzerland , price progress in cement and readymixed concrete and a focus on cost savings initiatives partly compensated for a decline in volumes due to challenging market conditions; consequently like-for-like sales and operating profit finished behind 2019. With

limited impact from COVID-19, cement volumes and pricing in   Germany   improved. 

Eastern Europe

Poland benefited from a mild winter, maintaining solid cement volumes and higher aggregates and asphalt volumes. Price growth offset lower readymixed concrete volumes delivering like-for-like sales and operating profit ahead of 2019. In Ukraine , improved cement pricing more than offset lower cement volumes which were impacted by competitive pressure from imports and a decline in residential construction. Lower input costs and tight cost control further contributed to higher operating profit than 2019. A strong performance was achieved in Romania , with sales and operating profit ahead of 2019 driven by robust pricing, cost savings initiatives and higher volumes due to favourable weather in the first quarter of the year, a strong pipeline of projects and increased demand in the residential sector. In Hungary and Slovakia, like-for-like sales and operating profit increased from the first half of 2019, with price progression and good cement volumes driven by strong infrastructure demand and mild weather earlier in the year. Cement volumes were in line with 2019 in Serbia due to a strong first quarter which offset lower volumes in the second quarter. Improved pricing and cost savings initiatives positively impacted operating profit which finished ahead of 2019.

Asia

Cement volumes in the Philippines declined as a result of COVID-19 related plant shutdowns. Reduced volumes and lower prices resulted in sales and operating profit behind the first half of 2019; however, the impact on profitability was partly offset by lower costs. The Group also has a share of profit after tax from its stake in Yatai Building Materials in China which is reported within the Group's share of equity accounted investments' results. Despite continued pricing pressure in Yatai Building Materials, sales and operating profit were ahead of the first half of 2019 due to higher volumes driven by government stimulus packages and reduced costs.

Building Products

 
                                               Analysis of change 
===============  ======  ==============================================================  ================= 
 $ million         2019   Exchange   Acquisitions   Divestments   One-offs(1)   Organic    2020   % change 
===============  ======  =========  =============  ============  ============  ========  ======  ========= 
 Sales revenue    3,699        -29           +174          -257             -       +79   3,666        -1% 
 EBITDA             533         -2            +34           -25           -12       +57     585       +10% 
 Operating 
  profit            371         -1            +16           -11           -12       +50     413       +11% 
 EBITDA/sales     14.4%                                                                   16.0% 
 Operating 
  profit/sales    10.0%                                                                   11.3% 
===============  ======  =========  =============  ============  ============  ========  ======  ========= 
 

(1) One-offs primarily due to COVID-19 related restructuring costs

In the first half of the year Building Products experienced solid pricing and improved volumes supported by robust homecenter demand, particularly in North America, along with more favourable early season weather in North America and Europe. The positive performance was partly offset by the business disruption as a result of COVID-19, as our European operations were particularly impacted by government restrictions from mid-March to late-May along with shutdowns in certain areas of North America. Reduced construction activity in the non-residential sector was more than offset by higher demand in residential RMI as people were confined to their homes during the pandemic. As a result, like-for-like sales were 2% ahead of 2019.

Rapid actions to mitigate the impact of the pandemic, commercial and operational initiatives along with improved selling prices helped deliver margin improvement and like-for-like operating profit was 14% ahead of 2019.

Architectural Products

With significant volume growth in both North America and Europe along with solid pricing, like-for-like sales in Architectural Products increased 12% compared with the first half of 2019, reflecting year-on-year increases in most major markets and product lines. Following steady demand in the first quarter supported by mild weather conditions and selling price increases, our operations in North America experienced a significant increase in demand in the second quarter across hardscapes, dry-mix as well as lawn and garden products as people remained at home during government restrictions. Trading in Europe benefited from volume growth in Germany and Poland.

Operating profit exceeded the same period last year with margin expansion due to volume efficiencies and benefits from profit improvement initiatives including actions taken to control fixed cost overheads during the COVID-19 crisis.

Building Envelope

Lower sales volumes across our C.R. Laurence and architectural glass operations as a result of the COVID-19 crisis resulted in like-for-like revenue 10% behind the first half of 2019. Pricing remained stable. C.R. Laurence was impacted due to a number of US "shelter in place" orders which adversely affected many small customers in the residential, interior and RMI segments.

Operating profit was behind 2019 due to the lower volumes partly offset by cost management initiatives to ensure input and labour costs remained in line with reductions in volumes.

Infrastructure Products

Selling price increases and volume growth in the North American utility enclosures business which was buoyed by strong demand from the communications sector, were offset by lower volumes in the European and Australian businesses; like-for-like sales were flat. The European operations, particularly in the UK and France, were impacted by COVID-19 restrictions while the Australian business was affected by a downturn in the telecoms market.

With a strong focus on cost control including plant rationalisation, performance improvement measures and good pricing, operating profit was ahead of the first half of 2019.

Construction Accessories

Like-for-like sales were 9% behind the first half of 2019 as a result of COVID-19 related business disruption which significantly impacted our operations in the UK, France and Belgium from mid-March. Mild weather conditions in the first quarter along with a strong order backlog in Germany partly offset the weaker trading. The US operations were also impacted by COVID-19 restrictions along with some challenging market conditions.

Operating profit was behind 2019 impacted by the lower volumes but partly offset by performance initiatives including production efficiencies, commercial excellence, procurement savings and overhead cost control.

Other Financial Items

As announced on 28 February 2020, the Group has changed the currency in which it presents its financial results from euro to US Dollar.

Depreciation and amortisation charges of $826 million were in line with 2019.

Divestments and asset disposals during the period generated total profit on disposals of $9 million (H1 2019: $166 million) which primarily related to the divestment of precast concrete production assets in our Building Products Division. The profit of $166 million in 2019 primarily reflected the profit on the divestment of the European Shutters & Awnings business.

The Group's $3 million share of losses from equity accounted investments was behind the first half of 2019 (H1 2019: $16 million profit) mainly due to the divestment of the Indian cement joint venture in 2019 along with weaker performances in a number of operations due to COVID-19 restrictions.

Net finance costs for the period were lower than the first six months of 2019 at $252 million (H1 2019: $261 million) primarily due to lower interest rates introduced by central banks globally to deal with the economic impact of the COVID-19 pandemic.

First-half profit before tax was $518 million (H1 2019: $717 million) and the interim tax charge, which represents an effective tax rate of 21.6% of profit before tax, has been estimated, as in prior years, based on current expectations of the full year tax charge. Earnings per share were 25% lower than last year at 51.3c (H1 2019: 68.1c), primarily reflecting lower profit on divestments compared with the first half of 2019.

Dividend and Share Buyback

In light of the Group's resilient first-half performance and despite the disruption of COVID-19 across our markets, the Board has decided to maintain the interim dividend, now declared in US Dollar, at 22.0c per share. It is proposed to pay the interim dividend wholly in cash on 25 September 2020 to shareholders registered at the close of business on 4 September 2020. Further details on the dividend process, including the default payment currency and currency election options, are set out in note 7 on page 24.

In March 2020, the Group completed the most recent tranche of its share buyback programme, returning a further $220 million of cash to shareholders. This brings total cash returned to shareholders under the Group's share buyback programme to $2 billion since its commencement in May 2018. Share buyback decisions are based on an ongoing assessment of the capital needs of the business and general market conditions. In light of the recent market volatility, the Board has paused the Group's share buyback programme until further notice.

Balance Sheet and Liquidity

Net debt of $7.8 billion at 30 June 2020 was $3.8 billion lower than the figure reported at 30 June 2019 (H1 2019: $11.6 billion). A first-half cash inflow from operating activities of $1.0 billion is an improvement of $0.7 billion over prior year (H1 2019: $0.3 billion) primarily due to strong working capital control. As in prior years, we expect a strong operating cash inflow in the second half of 2020 and for year-end 2020 debt metrics to show an improvement on prior year (Year-end 2019 Net Debt/EBITDA 1.7x).

In April 2020, the Group drew down its EUR3.5 billion revolving credit facility further strengthening its cash position. In April 2020, the Group successfully issued a total of EUR2 billion in euro denominated bonds at a weighted average maturity of seven years and with a weighted average interest rate of 1.35%. As at 30 June 2020, the Group had $10 billion of cash with sufficient liquidity to meet all maturing debt obligations for the next 4.9 years.

The Group continues to maintain its strong balance sheet and a strong investment grade credit rating with a BBB+ or equivalent rating with each of the three main rating agencies.

Acquisitions and Divestments

In H1 2020, the Group invested $129 million on eight acquisitions (including deferred and contingent consideration in respect of prior year acquisitions).

On the divestment front, the Group completed four transactions and realised total business and asset disposal proceeds of $184 million, inclusive of $115 million relating to the receipt of deferred proceeds from prior year divestments.

H1 2020 Acquisitions and Investments

The Building Products Division completed three bolt-on acquisitions in H1 2020 amounting to a total spend of $69 million. The largest acquisition was in Infrastructure Products where it acquired the assets of Highline Products in Tennessee providing increased participation in the enclosures market and an attractive geographic presence in the polymer concrete market.

The Americas Materials Division completed two bolt-on acquisitions in the US for a total spend of $23 million, while the Europe Materials Division completed three small acquisitions for an investment of $5 million.

In addition, the Group paid $32 million of deferred and contingent consideration in H1 2020.

H1 2020 Divestments and Disposals

The largest divestment in H1 2020 was the sale of precast concrete production assets located in Spokane, Washington completed by our Building Products Division, which received $18 million in proceeds . Americas Materials divested of its asphalt and construction business in the Florida Panhandle for total proceeds of $12 million. Two smaller divestments were completed in our Europe Materials Division.

In addition to these business divestments, the Group realised proceeds of $39 million from the disposal of surplus property, plant and equipment and other non-current assets. Furthermore, $115 million cash proceeds were received in H1 2020 relating to prior year divestments, of which $92 million related to deferred consideration for the Group's previous equity interest in My Home Industries Ltd., India.

Condensed Interim

Financial Statements

and

Summarised Notes

Six months ended 30 June 2020

Condensed Consolidated Income Statement

 
                                              Unaudited                    Year ended 
                                                       Six months ended   31 December 
                                                                30 June 
                                                               Restated      Restated 
                                                               (i) (ii)           (i) 
                                                       2020        2019          2019 
                                                         $m          $m            $m 
                                          -----------------  ----------  ------------ 
 
 Revenue                                             12,215      12,847        28,132 
 Cost of sales                                      (8,365)     (8,729)      (18,859) 
                                          -----------------  ----------  ------------ 
 Gross profit                                         3,850       4,118         9,273 
 Operating costs                                    (3,086)     (3,322)       (6,480) 
                                          -----------------  ----------  ------------ 
 Group operating profit                                 764         796         2,793 
 Profit/(loss) on disposals                               9         166         (189) 
                                          -----------------  ----------  ------------ 
 Profit before finance costs                            773         962         2,604 
 Finance costs                                        (206)       (207)         (387) 
 Finance income                                           2           8            22 
 Other financial expense                               (48)        (62)         (125) 
 Share of equity accounted investments' 
  (loss)/profit                                         (3)          16            67 
                                          -----------------  ----------  ------------ 
 Profit before tax from continuing 
  operations                                            518         717         2,181 
 Income tax expense - estimated at 
  interim                                             (112)       (159)         (534) 
                                          -----------------  ----------  ------------ 
 Group profit for the financial period 
  from continuing operations                            406         558         1,647 
 Profit after tax for the financial 
  period from discontinued operations                     -          44            91 
                                          -----------------  ----------  ------------ 
 Group profit for the financial period                  406         602         1,738 
 
 Profit attributable to: 
 Equity holders of the Company 
     From continuing operations                         403         551         1,627 
     From discontinued operations                         -          43            90 
 Non-controlling interests 
     From continuing operations                           3           7            20 
     From discontinued operations                         -           1             1 
                                          -----------------  ----------  ------------ 
 Group profit for the financial period                  406         602         1,738 
                                          =================  ==========  ============ 
 
 Basic earnings per Ordinary Share                    51.3c       73.5c        214.3c 
 Diluted earnings per Ordinary Share                  51.0c       73.1c        212.6c 
                                          =================  ==========  ============ 
 
 Basic earnings per Ordinary Share 
  from continuing operations                          51.3c       68.1c        203.0c 
 Diluted earnings per Ordinary Share 
  from continuing operations                          51.0c       67.8c        201.4c 
 

(i) Restated throughout to be presented in US Dollar. See note 1 and note 18 for further details.

(ii) Restated to show the results of our former Europe Distribution segment in discontinued operations. See note 9 for further details.

 
 Condensed Consolidated Statement of Comprehensive Income 
                                                           Unaudited                       Year ended 
                                                                   Six months ended       31 December 
                                                                            30 June 
                                                                           Restated          Restated 
                                                                    2020       2019              2019 
                                                                      $m         $m                $m 
                                                       -----------------  ---------  ---------------- 
 Group profit for the financial period                               406        602             1,738 
                                                       -----------------  ---------  ---------------- 
 
 Other comprehensive income 
 Items that may be reclassified to profit or loss in subsequent 
  periods: 
 Currency translation effects                                      (298)         63               472 
 (Losses)/gains relating to cash flow 
  hedges                                                             (1)         33                27 
 Tax relating to cash flow hedges                                      -        (4)               (4) 
                                                       -----------------  ---------  ---------------- 
                                                                   (299)         92               495 
                                                       -----------------  ---------  ---------------- 
 Items that will not be reclassified to profit or loss in subsequent 
  periods: 
 Remeasurement of retirement benefit 
  obligations                                                       (84)      (148)              (19) 
 Tax relating to retirement benefit 
  obligations                                                         16         17               (4) 
                                                       -----------------  ---------  ---------------- 
                                                                    (68)      (131)              (23) 
                                                       -----------------  ---------  ---------------- 
 
 Total other comprehensive income 
  for the financial period                                         (367)       (39)               472 
                                                       -----------------  ---------  ---------------- 
 Total comprehensive income for the 
  financial period                                                    39        563             2,210 
                                                       =================  =========  ================ 
 
 Attributable to: 
 Equity holders of the Company                                        30        545             2,174 
 Non-controlling interests                                             9         18                36 
                                                       -----------------  ---------  ---------------- 
 Total comprehensive income for the 
  financial period                                                    39        563             2,210 
                                                       =================  =========  ================ 
 
 

Condensed Consolidated Balance Sheet

 
                                          Unaudited   Unaudited         As at 
                                           As at 30       As at     31 December 
                                               June     30 June 
                                                       Restated        Restated 
                                               2020        2019            2019 
                                                 $m          $m              $m 
 ASSETS 
 Non-current assets 
 Property, plant and equipment               19,099      20,308          19,574 
 Intangible assets                            9,378       9,702           9,475 
 Investments accounted for using the 
  equity method                                 737       1,344             775 
 Other financial assets                          13          26              13 
 Other receivables                              299         205             356 
 Derivative financial instruments               190          89              85 
 Deferred income tax assets                      85          77              76 
                                         ----------  ----------  -------------- 
 Total non-current assets                    29,801      31,751          30,354 
                                         ----------  ----------  -------------- 
 
 Current assets 
 Inventories                                  2,940       3,673           3,080 
 Trade and other receivables                  4,917       5,984           4,231 
 Current income tax recoverable                  29          24              22 
 Derivative financial instruments                27          10               7 
 Cash and cash equivalents                   10,088       1,592           4,218 
 Total current assets                        18,001      11,283          11,558 
                                         ----------  ----------  -------------- 
 
 Total assets                                47,802      43,034          41,912 
                                         ==========  ==========  ============== 
 
 EQUITY 
 Capital and reserves attributable 
  to the Company ' s equity holders 
 Equity share capital                           335         352             335 
 Preference share capital                         1           1               1 
 Share premium account                        7,493       7,493           7,493 
 Treasury Shares and own shares               (540)     (1,378)           (360) 
 Other reserves                                 393         351             411 
 Foreign currency translation reserve         (506)       (606)           (202) 
 Retained income                             11,108      11,578          11,350 
                                         ----------  ----------  -------------- 
 Capital and reserves attributable 
  to the Company's equity holders            18,284      17,791          19,028 
 Non-controlling interests                      642         620             607 
                                         ----------  ----------  -------------- 
 Total equity                                18,926      18,411          19,635 
                                         ----------  ----------  -------------- 
 
 LIABILITIES 
 Non-current liabilities 
 Lease liabilities                            1,326       1,709           1,393 
 Interest-bearing loans and borrowings       15,108      10,022           9,211 
 Derivative financial instruments                 5           -               1 
 Deferred income tax liabilities              2,609       2,518           2,627 
 Other payables                                 626         541             545 
 Retirement benefit obligations                 569         652             480 
 Provisions for liabilities                     865         832             854 
                                         ----------  ----------  -------------- 
 Total non-current liabilities               21,108      16,274          15,111 
                                         ----------  ----------  -------------- 
 
 Current liabilities 
 Lease liabilities                              283         407             304 
 Trade and other payables                     5,031       5,773           4,916 
 Current income tax liabilities                 612         560             565 
 Interest-bearing loans and borrowings        1,329       1,164             916 
 Derivative financial instruments                18          25              17 
 Provisions for liabilities                     495         420             448 
 Total current liabilities                    7,768       8,349           7,166 
                                         ----------  ----------  -------------- 
 Total liabilities                           28,876      24,623          22,277 
                                         ----------  ----------  -------------- 
 
 Total equity and liabilities                47,802      43,034          41,912 
                                         ==========  ==========  ============== 
 

Condensed Consolidated Statement of Changes in Equity

 
                                        Attributable to the equity holders of 
                                                      the Company 
                          ----------------------------------------------------------------- 
                                               Treasury                  Foreign 
                            Issued     Share    Shares/                 currency                     Non- 
                             share   premium        own      Other   translation   Retained   controlling    Total 
                           capital   account     shares   reserves       reserve     income     interests   equity 
                                $m        $m         $m         $m            $m         $m            $m       $m 
                          --------  --------  ---------  ---------  ------------  ---------  ------------  ------- 
 For the financial period ended 30 
  June 2020 (unaudited) 
 
 At 1 January 2020             336     7,493      (360)        411         (202)     11,350           607   19,635 
 Group profit for 
  the financial period           -         -          -          -             -        403             3      406 
 Other comprehensive 
  income                         -         -          -          -         (304)       (69)             6    (367) 
                          --------  --------  ---------  ---------  ------------  ---------  ------------  ------- 
 Total comprehensive 
  income                         -         -          -          -         (304)        334             9       39 
 Share-based payment 
  expense                        -         -          -         47             -          -             -       47 
 Shares acquired 
  by CRH plc (Treasury 
  Shares)                        -         -      (220)          -             -          -             -    (220) 
 Treasury Shares/own 
  shares reissued                -         -          4          -             -        (4)             -        - 
 Shares acquired 
  by the Employee 
  Benefit Trust (own 
  shares)                        -         -       (29)          -             -          -             -     (29) 
 Shares distributed 
  under the Performance 
  Share Plan Awards              -         -         65       (65)             -          -             -        - 
 Tax relating to 
  share-based payment 
  expense                        -         -          -          -             -        (7)             -      (7) 
 Share option exercises          -         -          -          -             -          3             -        3 
 Dividends                       -         -          -          -             -      (537)           (5)    (542) 
 Transactions involving 
  non-controlling 
  interests                      -         -          -          -             -       (31)            31        - 
 At 30 June 2020               336     7,493      (540)        393         (506)     11,108           642   18,926 
                          ========  ========  =========  =========  ============  =========  ============  ======= 
 
 
 For the financial period ended 30 June 2019 (unaudited) 
 
 At 1 January 2019 
  (restated)               353   7,493     (920)    378   (659)   11,705   602   18,952 
 Group profit for 
  the financial period       -       -         -      -       -      594     8      602 
 Other comprehensive 
  income                     -       -         -      -      53    (102)    10     (39) 
                          ----  ------  --------  -----  ------  -------  ----  ------- 
 Total comprehensive 
  income                     -       -         -      -      53      492    18      563 
 Share-based payment 
  expense                    -       -         -     43       -        -     -       43 
 Shares acquired 
  by CRH plc (Treasury 
  Shares)                    -       -     (492)      -       -    (128)     -    (620) 
 Treasury Shares/own 
  shares reissued            -       -        32      -       -     (32)     -        - 
 Shares acquired 
  by the Employee 
  Benefit Trust (own 
  shares)                    -       -      (68)      -       -        -     -     (68) 
 Shares distributed 
  under the Performance 
  Share Plan Awards          -       -        70   (70)       -        -     -        - 
 Tax relating to 
  share-based payment 
  expense                    -       -         -      -       -        1     -        1 
 Share option exercises      -       -         -      -       -       17     -       17 
 Dividends                   -       -         -      -       -    (477)   (6)    (483) 
 Non-controlling 
  interests arising 
  on acquisition of 
  subsidiaries               -       -         -      -       -        -     2        2 
 Transactions involving 
  non-controlling 
  interests                  -       -         -      -       -        -     4        4 
                          ----  ------  --------  -----  ------  -------  ----  ------- 
 At 30 June 2019 
  (restated)               353   7,493   (1,378)    351   (606)   11,578   620   18,411 
                          ====  ======  ========  =====  ======  =======  ====  ======= 
 

Condensed Consolidated Statement of Changes in Equity - continued

 
                                            Attributable to the equity holders of 
                                                          the Company 
                              ----------------------------------------------------------------- 
                                                   Treasury                  Foreign 
                                Issued     Share    Shares/                 currency                     Non- 
                                 share   premium        own      Other   translation   Retained   controlling    Total 
                               capital   account     shares   reserves       reserve     income     interests   Equity 
                                    $m        $m         $m         $m            $m         $m            $m       $m 
                              --------  --------  ---------  ---------  ------------  ---------  ------------  ------- 
 For the financial year ended 31 December 
  2019 
 
 At 1 January 2019 
  (restated)                       353     7,493      (920)        378         (659)     11,705           602   18,952 
 Group profit for 
  the financial year                 -         -          -          -             -      1,717            21    1,738 
 Other comprehensive 
  income                             -         -          -          -           457          -            15      472 
                              --------  --------  ---------  ---------  ------------  ---------  ------------  ------- 
 Total comprehensive 
  income                             -         -          -          -           457      1,717            36    2,210 
 Share-based payment 
  expense                            -         -          -         86             -          -             -       86 
 Shares acquired 
  by CRH plc (Treasury 
  Shares)                            -         -      (886)          -             -          -             -    (886) 
 Treasury Shares/own 
  shares reissued                    -         -         42          -             -       (42)             -        - 
 Shares acquired 
  by the Employee 
  Benefit Trust (own 
  shares)                            -         -       (68)          -             -          -             -     (68) 
 Shares distributed 
  under the Performance 
  Share Plan Awards                  -         -         70       (70)             -          -             -        - 
 Cancellation of 
  Treasury Shares                 (17)         -      1,402         17             -    (1,402)             -        - 
 Tax relating to 
  share-based payment 
  expense                            -         -          -          -             -         11             -       11 
 Share option exercises              -         -          -          -             -         22             -       22 
 Dividends                           -         -          -          -             -      (652)          (11)    (663) 
 Disposal of non-controlling 
  interests                          -         -          -          -             -          -           (9)      (9) 
 Non-controlling 
  interests arising 
  on acquisition of 
  subsidiaries                       -         -          -          -             -          -             1        1 
 Transactions involving 
  non-controlling 
  interests                          -         -          -          -             -        (9)          (12)     (21) 
 At 31 December 2019 
  (restated)                       336     7,493      (360)        411         (202)     11,350           607   19,635 
                              ========  ========  =========  =========  ============  =========  ============  ======= 
 

Condensed Consolidated Statement of Cash Flows

 
                                                   Unaudited                    Year ended 
                                                         Six months ended 30   31 December 
                                                                        June 
                                                                    Restated      Restated 
                                                             2020       2019          2019 
                                                               $m         $m            $m 
                                             --------------------  ---------  ------------ 
 Cash flows from operating activities 
 Profit before tax from continuing 
  operations                                                  518        717         2,181 
 Profit before tax from discontinued 
  operations                                                    -         56           117 
                                             --------------------  ---------  ------------ 
 Profit before tax                                            518        773         2,298 
 Finance costs (net)                                          252        266           498 
 Share of equity accounted investments' 
  loss/(profit)                                                 3       (23)          (81) 
 (Profit)/loss on disposals                                   (9)      (168)           191 
                                             --------------------  ---------  ------------ 
 Group operating profit                                       764        848         2,906 
 Depreciation charge                                          789        859         1,721 
 Amortisation of intangible assets                             37         33            66 
 Impairment charge                                              -          -             9 
 Share-based payment expense                                   47         43            86 
 Other (primarily pension payments)                             8          8           (3) 
 Net movement on working capital and 
  provisions                                                (356)    (1,132)          (71) 
                                                                   --------- 
 Cash generated from operations                             1,289        659         4,714 
 Interest paid (including leases)                           (209)      (228)         (469) 
 Corporation tax paid                                        (72)      (125)         (364) 
                                                                   --------- 
 Net cash inflow from operating activities                  1,008        306         3,881 
                                             --------------------  ---------  ------------ 
 
 Cash flows from investing activities 
 Proceeds from disposals (net of cash 
  disposed and deferred proceeds)                              69        415         2,343 
 Interest received                                              2          8            22 
 Dividends received from equity accounted 
  investments                                                  10         16            39 
 Purchase of property, plant and equipment                  (514)      (718)       (1,374) 
 Acquisition of subsidiaries (net 
  of cash acquired)                                          (96)      (322)         (727) 
 Other investments and advances                               (1)        (9)          (32) 
 Deferred and contingent acquisition 
  consideration paid                                         (32)       (30)          (54) 
 Deferred and contingent divestment                           115          -             - 
  consideration received 
                                             --------------------  ---------  ------------ 
 Net cash (outflow)/inflow from investing 
  activities                                                (447)      (640)           217 
                                             --------------------  ---------  ------------ 
 
 Cash flows from financing activities 
 Proceeds from exercise of share options                        3         17            22 
 Transactions involving non-controlling 
  interests                                                     -          4          (21) 
 Increase in interest-bearing loans 
  and borrowings                                            6,174      1,077           106 
 Net cash flow arising from derivative 
  financial instruments                                        51       (11)          (40) 
 Repayment of interest-bearing loans 
  and borrowings                                             (26)      (592)         (640) 
 Repayment of lease liabilities*                            (132)      (190)         (356) 
 Treasury Shares/own shares purchased                       (249)      (560)         (954) 
 Dividends paid to equity holders 
  of the Company                                            (537)      (477)         (652) 
 Dividends paid to non-controlling 
  interests                                                   (5)        (6)          (11) 
                                             --------------------  ---------  ------------ 
 Net cash inflow/(outflow) from financing 
  activities                                                5,279      (738)       (2,546) 
                                             --------------------  ---------  ------------ 
 Increase/(decrease) in cash and cash 
  equivalents                                               5,840    (1,072)         1,552 
                                             ====================  =========  ============ 
 
 Reconciliation of opening to closing 
  cash and cash equivalents 
 Cash and cash equivalents at 1 January                     4,218      2,686         2,686 
 Translation adjustment                                        30       (22)          (20) 
 Increase/(decrease) in cash and cash 
  equivalents                                               5,840    (1,072)         1,552 
                                             --------------------  ---------  ------------ 
 Cash and cash equivalents at 30 June                      10,088      1,592         4,218 
                                             ====================  =========  ============ 
 
 

* Repayment of lease liabilities capitalised under IFRS 16 Leases in the period to 30 June 2020 amounted to $167 million (30 June 2019: $229 million; 31 December 2019: $433 million), of which $35 million (30 June 2019: $39 million; 31 December 2019: $77 million) related to interest paid which is presented in cash flows from operating activities.

Supplementary Information

Selected Explanatory Notes to the Condensed Consolidated Interim 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 approved by the European Union, as issued by the International Accounting Standards Board (IASB) and in accordance with IAS 34 Interim Financial Reporting.

These Condensed Consolidated Interim Financial Statements do not include all the information and disclosures required in the Annual Consolidated Financial Statements and should be read in conjunction with the Group's 2019 Annual Report and Form 20-F.

The accounting policies and methods of computation employed in the preparation of the Condensed Consolidated Interim Financial Statements are the same as those employed in the preparation of the Annual Consolidated Financial Statements in respect of the year ended 31 December 2019, except for the change in presentation currency and adoption of new standards, interpretations and standard amendments effective as of 1 January 2020 as set out below.

Change in presentation currency

On 28 February 2020 the Group announced that from the beginning of the current financial year it would be changing the currency in which it presents its financial results from euro to US Dollar. Within our current portfolio of businesses, our euro denominated earnings, while sizeable, are a relatively lower proportion of overall earnings. To reduce the potential for foreign exchange volatility in our future reported earnings, the Board determined that, with effect from 1 January 2020, CRH will present its results in US Dollar. Given the current composition of the Group's activities, this change is expected to reduce the impact of currency movements on reported results.

Accordingly, to satisfy the requirements of IAS 21The Effects of Changes in Foreign Exchange Rates, the reported results for the six months ended 30 June 2019 and for the year ended 31 December 2019 have been translated from euro to US Dollar using the following procedures:

-- Assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at the relevant closing rates of exchange;

-- The trading results of subsidiaries where the functional currency was other than US Dollar were translated into US Dollar at the relevant average rates of exchange;

-- Movements in other reserves were translated into US Dollar at the relevant average rates of exchange;

-- Significant business divestments were translated at the spot rates prevailing on the date of divestment;

-- Share capital, share premium, Treasury Shares/own shares and dividends were translated at the historic rates prevailing on the date of each transaction; and

-- The cumulative translation reserve was set to nil at 1 January 2004, the date of transition to IFRS, and has been restated on the basis that the Group has reported in US Dollars since that date.

A change in presentation currency represents a change in accounting policy which is accounted for retrospectively. The average and closing rates used for this exercise are provided overleaf.

   1.   Basis of Preparation and Accounting Policies - continued 

Translation of Foreign Currencies

The financial information is presented in US Dollar. Results and cash flows of operations based in non-US Dollar countries have been translated into US Dollar at average exchange rates for the period, and the related balance sheets have been translated at the rates of exchange ruling at the balance sheet date. The principal rates used for translation of results, cash flows and balance sheets into US Dollar were:

 
                                           Average                                      Period end 
                                Six months ended     Year ended               Six months ended     Year ended 
                                  30 June           31 December                    30 June        31 December 
     USD 1 =                    2020         2019          2019            2020            2019          2019 
 
     Brazilian Real           4.9150       3.8429        3.9423          5.4045          3.8235        4.0197 
     Canadian Dollar          1.3650       1.3338        1.3269          1.3682          1.3087        1.2994 
     Chinese Renminbi         7.0331       6.7869        6.9098          7.0742          6.8704        6.9615 
     Euro                     0.9078       0.8851        0.8933          0.8932          0.8787        0.8902 
     Hungarian Forint       313.4895     283.6075      290.5732        318.2500        284.1740      294.2229 
     Indian Rupee            74.1511      70.0336       70.4208         75.5102         69.0018       71.3788 
     Philippine Peso         50.6487      52.2047       51.7955         49.8210         51.2610       50.6498 
     Polish Zloty             4.0073       3.7989        3.8389          3.9795          3.7343        3.7892 
     Pound Sterling           0.7939       0.7732        0.7841          0.8150          0.7879        0.7573 
     Romanian Leu             4.3733       4.1970        4.2388          4.3228          4.1602        4.2576 
     Serbian Dinar          106.7435     104.5147      105.2592        105.0205        103.6340      104.8813 
     Swiss Franc              0.9658       0.9997        0.9937          0.9516          0.9758        0.9662 
     Ukrainian Hryvnia       26.0077      26.9013       25.8045         26.6989         26.1626       23.8007 
 

Adoption of IFRS and International Financial Reporting Interpretations Committee (IFRIC) interpretations

The following standard amendments became effective for the Group as of 1 January 2020:

   --     Amendments to IFRS 3 Business Combinations - Definition of a business 

-- Amendments to IFRS 9 Financial instruments, IAS 39 Financial instruments: Recognition and measurement and IFRS 7 Financial instruments: Disclosures - Interest Rate Benchmark Reform

-- Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of material

   --     Amendments to References to the Conceptual Framework in IFRS Standards 

The standard amendments did not result in a material impact on the Group's results.

The following standard amendment was issued in May 2020 effective for annual reporting periods beginning on or after 1 June 2020 with earlier application permitted:

-- Amendments to IFRS 16 Leases - COVID-19-related rent concessions. The amendment, which would not have been material for the Group for the first half of 2020, has not yet been adopted.

IFRS and IFRIC interpretations being adopted in subsequent years

-- IFRS 17 Insurance Contracts is expected to be effective for reporting periods beginning on or after 1 January 2023, with presentation of comparative figures required. The Group is currently evaluating the impact of this standard on future periods.

There are no other IFRS or IFRIC interpretations that are effective subsequent to the CRH 2020 financial year end that would have a material impact on the results or financial position of the Group.

   1.   Basis of Preparation and Accounting Policies - continued 

Significant Estimates, Assumptions and Judgements

The preparation of the Condensed Consolidated Interim Financial Statements in accordance with IFRS requires management to make certain estimates, assumptions and judgements that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Management believes that the estimates, assumptions and judgements upon which it relies are reasonable based on the information available to it at the time that those estimates, assumptions and judgements are made.

Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances or experiences on which the estimate was based or as a result of new information.

The significant judgements, the key sources of estimation uncertainty and underlying assumptions applied in the preparation of the Condensed Consolidated Interim Financial Statements were the same as those applied in preparing the Consolidated Financial Statements for the year ended 31 December 2019 with the addition of assessing the impact of the COVID-19 pandemic as set out below.

COVID-19

The current health emergency caused by the global spread of COVID-19 has significant implications for the economies and construction markets in which we operate, and the Group has taken measures in response to the pandemic as outlined on page 2.

The Group has considered the impact of these measures with respect to all significant estimates, assumptions and judgements it makes in the application of the Group's accounting policies and is discussed further below.

Impairment

As at 30 June 2020, the Group performed a review for potential indicators of impairment relating to goodwill of $9.0 billion (30 June 2019: $9.3 billion) allocated to cash-generating units ("CGUs"). When reviewing for indicators of impairment in interim periods, the Group considers, amongst others, the results of the last annual impairment test, the level of headroom and financial performance in the first half of the year.

For the current interim period this review also considered the impact of COVID-19 on the long-term outlook for our businesses which currently remains positive and supports our CGU valuations. As a result, no impairment indicators were identified. The carrying values of items of property, plant and equipment were also reviewed for indicators of impairment. These reviews did not give rise to any impairment charges in the first half of 2020 (H1 2019: $nil million).

While we have not identified any impairments, uncertainty remains in relation to the pace and extent of recovery in some challenging markets (particularly in our Europe Materials segment) with the medium-term outlook dependent on an improving health situation. We will continue to monitor our assessment of the economic environments and in particular the impact of the COVID-19 pandemic and our consequential management actions, to determine whether they have an impact on the long-term valuation of our CGUs. Accordingly, we will update our impairment reviews as part of the finalisation of the full-year Consolidated Financial Statements for 2020.

Other significant estimates and judgements

The impact of COVID-19 on the significant judgements, key sources of estimation uncertainty and underlying assumptions applied in provisions for liabilities, retirement benefit obligations and taxation has also been considered and the impacts are not considered material in the context of the 2020 Condensed Consolidated Interim Financial Statements.

Going Concern

The time period that the Directors have considered in evaluating the appropriateness of the going concern basis in preparing the 2020 Condensed Consolidated Interim Financial Statements is a period of at least twelve months from the date of approval of these financial statements (the 'period of assessment').

The Group has considerable financial resources and a large number of customers and suppliers across different geographic areas and industries. The increase in cash and liquidity available to the Group including our ongoing ability to access the debt markets, the quantum of our liquidity facilities, the absence of financial covenants associated with our debt obligations and the continuing maintenance of strong investment grade credit ratings demonstrate the significant financial strength and resilience of the Group. No concerns or material uncertainties have been identified as part of our assessment, which also considered the impact of the COVID-19 pandemic.

Having assessed the relevant business risks including the pandemic risk identified and discussed in our Principal Risks and Uncertainties on page 38, the Directors believe that the Group is well placed to manage these risks successfully and they have a reasonable expectation that CRH plc, and the Group as a whole, has adequate financial and other resources to continue in operational existence for the period of assessment with no material uncertainties. For this reason, the Directors continue to adopt the going concern basis in preparing the Condensed Consolidated Interim Financial Statements.

   2.   Key Components of Performance for the First Half of 2020 

Continuing operations

 
                                               Operating      Profit on   Finance costs     Assoc. and         Pre-tax 
 $ million        Sales revenue   EBITDA          profit      disposals           (net)     JV PAT (i)          profit 
 
 First half 
  2019                   12,847    1,621             796            166           (261)             16             717 
 Exchange 
  effects                 (153)     (11)             (2)            (1)               2              -             (1) 
                 --------------  -------  --------------  -------------  --------------  -------------  -------------- 
 2019 at 2020 
  rates                  12,694    1,610             794            165           (259)             16             716 
 Incremental 
 impact in 2020 
 of: 
  2019/2020 
   acquisitions             231       42              17              -             (6)              -              11 
  2019/2020 
   divestments            (277)     (24)             (9)          (127)             (2)            (7)           (145) 
  One-offs                    -     (65)            (65)              -               -              -            (65) 
  Organic                 (433)       27              27           (29)              15           (12)               1 
 First half 
  2020                   12,215    1,590             764              9           (252)            (3)             518 
                 ==============  =======  ==============  =============  ==============  =============  ============== 
 
 % Total change             -5%      -2%             -4%                                                          -28% 
 % Organic 
  change                    -3%       2%              3%                                                             - 
 
   (i)     CRH's share of after-tax result 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. As shown in the table above, the Group ' s operations exhibit a high degree of seasonality and can be significantly impacted by the timing of acquisitions and divestments; for example first half EBITDA from continuing operations in the 2019 financial period accounted for 36% of the EBITDA from continuing operations reported for the full year of 2019. Due to the impact of COVID-19, the performance of the Group in the second half of 2020 will also be dependent on an improving health situation across our markets.

   4.   Revenue 

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.

 
                           Six months ended 30 June 2020 - Unaudited     Six months ended 30 June 2019 - Unaudited 
                         --------------------------------------------  --------------------------------------------- 
                           Americas       Europe    Building    Total    Americas       Europe     Building    Total 
                          Materials    Materials    Products            Materials    Materials     Products 
                                 $m           $m          $m       $m          $m           $m           $m       $m 
                         ----------  -----------  ----------  -------  ----------  -----------  -----------  ------- 
 Primary geographic 
 markets 
 Continuing operations 
 Republic of Ireland 
  (Country of domicile)           -          243           -      243           -          320            -      320 
 United Kingdom                   -        1,368          79    1,447           -        1,707          138    1,845 
 Rest of Europe (i)               -        2,238         484    2,722           -        2,311          661    2,972 
 United States                4,023            -       2,858    6,881       4,050            -        2,663    6,713 
 Rest of World (ii)             456          221         245      922         483          277          237      997 
                         ----------  -----------  ----------  -------  ----------  -----------  -----------  ------- 
 Total Group from 
  continuing operations       4,479        4,070       3,666   12,215       4,533        4,615        3,699   12,847 
                         ==========  ===========  ==========           ==========  ===========  =========== 
 
 Discontinued 
 operations 
 Rest of Europe (i) - 
  Europe Distribution                                               -                                          2,086 
                                                              -------                                        ------- 
 Total Group                                                   12,215                                         14,933 
                                                              =======                                        ======= 
 

Footnotes (i) and (ii) appear on page 20.

   4.   Revenue - continued 
 
                         Six months ended 30 June 2020 - Unaudited         Six months ended 30 June 2019 - Unaudited 
                  ------------------------------------------------  ------------------------------------------------ 
                     Americas        Europe      Building    Total     Americas        Europe      Building    Total 
                    Materials     Materials      Products             Materials     Materials      Products 
                        (iii)         (iii)                               (iii)         (iii) 
                           $m            $m            $m       $m           $m            $m            $m       $m 
                  -----------  ------------  ------------  -------  -----------  ------------  ------------  ------- 
 Principal 
 activities and 
 products 
 Continuing 
 operations 
 Cement, lime 
  and cement 
  products                615         1,327             -    1,942          608         1,445             -    2,053 
 Aggregates, 
  asphalt and 
  readymixed 
  products              2,353         1,370             -    3,723        2,351         1,687             -    4,038 
 Construction 
  contract 
  activities*           1,511           746            82    2,339        1,574           855           104    2,533 
 Architectural 
  products                  -           548         1,808    2,356            -           528         1,703    2,231 
 Infrastructure 
  products (iv)             -            79           663      742            -           100           673      773 
 Construction 
  accessories 
  (iv)                      -             -           302      302            -             -           333      333 
 Architectural 
  glass and 
  glazing 
  systems and 
  wholesale 
  hardware 
  distribution              -             -           811      811            -             -           886      886 
                  -----------  ------------  ------------  -------  -----------  ------------  ------------  ------- 
 Total Group 
  from 
  continuing 
  operations            4,479         4,070         3,666   12,215        4,533         4,615         3,699   12,847 
                  ===========  ============  ============           ===========  ============  ============ 
 
 Discontinued 
 operations 
 General 
  Builders 
  Merchants, DIY 
  Germany and 
  Sanitary, 
  Heating & 
  Plumbing - 
  Europe 
  Distribution                                                   -                                             2,086 
                                                           -------                                           ------- 
 Total Group                                                12,215                                            14,933 
                                                           =======                                           ======= 
 

* Revenue principally recognised over time. Construction contracts are generally completed within the same financial reporting year.

Footnotes to revenue disaggregation on pages 19 & 20

(i) The Rest of Europe principally includes Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Luxembourg, 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 review and evaluate this business line.

(iv) Comparative amounts for 2019 have been restated where necessary to reflect the disaggregation of revenue for our construction accessories business.

   5.   Segment Information 
 
                                                         Unaudited                   Year ended 
                                                 Six months ended 30 June            31 December 
                                                     2020            2019               2019 
                                                  $m       %       $m       %         $m        % 
                                             -------  ------  -------  ------  ---------  ------- 
         Revenue 
          Continuing operations 
          Americas Materials                   4,479    36.7    4,533    30.4     11,626     36.7 
          Europe Materials                     4,070    33.3    4,615    30.9      9,509     30.0 
          Building Products                    3,666    30.0    3,699    24.8      6,997     22.1 
         Total Group from continuing 
          operations                          12,215   100.0   12,847    86.1     28,132     88.8 
          Discontinued operations - Europe 
           Distribution                            -       -    2,086    13.9      3,557     11.2 
          Total Group                         12,215   100.0   14,933   100.0     31,689    100.0 
                                             =======  ======  =======  ======  =========  ======= 
 
         Group EBITDA 
          Continuing operations 
          Americas Materials                     667    41.9      567    32.6      2,194     46.7 
          Europe Materials                       338    21.3      521    29.9      1,208     25.7 
          Building Products                      585    36.8      533    30.7      1,076     22.8 
         Total Group from continuing 
          operations                           1,590   100.0    1,621    93.2      4,478     95.2 
          Discontinued operations - Europe 
           Distribution                            -       -      119     6.8        224      4.8 
                                             -------  ------  -------  ------  ---------  ------- 
          Total Group                          1,590   100.0    1,740   100.0      4,702    100.0 
                                             =======  ======  =======  ======  =========  ======= 
 
          Depreciation, amortisation 
           and impairment 
          Continuing operations 
          Americas Materials                     378    45.8      378    42.5        771     42.9 
          Europe Materials                       276    33.4      285    31.9        586     32.6 
          Building Products                      172    20.8      162    18.1        328     18.3 
         Total Group from continuing 
          operations                             826   100.0      825    92.5      1,685     93.8 
          Discontinued operations - Europe 
           Distribution                            -       -       67     7.5        111      6.2 
                                             -------  ------  -------  ------  ---------  ------- 
          Total Group                            826   100.0      892   100.0      1,796    100.0 
                                             =======  ======  =======  ======  =========  ======= 
 
          Group operating profit 
          Continuing operations 
          Americas Materials                     289    37.8      189    22.3      1,423     49.0 
          Europe Materials                        62     8.1      236    27.8        622     21.4 
          Building Products                      413    54.1      371    43.8        748     25.7 
         Total Group from continuing 
          operations                             764   100.0      796    93.9      2,793     96.1 
          Discontinued operations - Europe 
           Distribution                            -       -       52     6.1        113      3.9 
                                             -------  ------  -------  ------  ---------  ------- 
          Total Group                            764   100.0      848   100.0      2,906    100.0 
                                             =======  ======  =======  ======  =========  ======= 
 
 
 
   5.   Segment Information - continued 
 
                                                                      Unaudited          Year ended 
                                                                 Six months ended 30    31 December 
                                                                         June 
                                                                2020             2019          2019 
                                                                  $m               $m            $m 
                                                    ----------------  ---------------  ------------ 
          Reconciliation of Group operating 
           profit to profit before tax: 
          Group operating profit from 
           continuing operations (analysed 
           on page 21)                                           764              796         2,793 
          Profit/(loss) on disposals (i)                           9              166         (189) 
                                                    ----------------  ---------------  ------------ 
          Profit before finance costs                            773              962         2,604 
          Finance costs less income                            (204)            (199)         (365) 
          Other financial expense                               (48)             (62)         (125) 
          Share of equity accounted investments' 
           (loss)/profit                                         (3)               16            67 
                                                    ----------------  ---------------  ------------ 
          Profit before tax from continuing 
           operations                                            518              717         2,181 
                                                    ================  ===============  ============ 
 
          (i) Profit/(loss) on disposals 
           - continuing operations 
         Americas Materials                                      (1)               10           (2) 
         Europe Materials                                          3               18         (283) 
         Building Products                                         7              138            96 
                                                    ----------------  ---------------  ------------ 
         Total Group                                               9              166         (189) 
                                                    ================  ===============  ============ 
 
 
                                                  Unaudited           Unaudited              As at 
                                                  As at 30            As at 30            31 December 
                                                     June                June 
                                                    2020                2019                 2019 
                                                     $m       %          $m       %            $m       % 
                                             ----------  ------  ----------  ------  ------------  ------ 
          Total assets 
          Americas Materials                     16,586    45.3      17,106    42.9        16,410    44.7 
          Europe Materials                       12,565    34.3      12,973    32.5        13,109    35.7 
          Building Products                       7,482    20.4       9,793    24.6         7,197    19.6 
          Total Group                            36,633   100.0      39,872   100.0        36,716   100.0 
                                                         ======              ======                ====== 
 
          Reconciliation to total assets 
           as reported in the Condensed 
           Consolidated Balance Sheet: 
          Investments accounted for using 
           the equity method                        737               1,344                   775 
          Other financial assets                     13                  26                    13 
          Derivative financial instruments 
           (current and non-current)                217                  99                    92 
          Income tax assets (current and 
           deferred)                                114                 101                    98 
          Cash and cash equivalents              10,088               1,592                 4,218 
          Total assets                           47,802              43,034                41,912 
                                             ==========          ==========          ============ 
 
 
 
 
   6.   Earnings per Ordinary Share 

The computation of basic and diluted earnings per Ordinary Share is set out below:

 
                                                   Unaudited                 Year ended 
                                                         Six months ended   31 December 
                                                                  30 June 
                                                            2020     2019          2019 
                                                              $m       $m            $m 
                                               -----------------  -------  ------------ 
 Numerator computations 
 Group profit for the financial period                       406      602         1,738 
 Profit attributable to non-controlling 
  interests                                                  (3)      (8)          (21) 
                                               -----------------  -------  ------------ 
 Profit attributable to ordinary equity 
  holders of the Company - numerator 
  for basic/diluted earnings per Ordinary 
  Share                                                      403      594         1,717 
 Profit after tax for the financial 
  period from discontinued operations 
  - attributable to equity holders of 
  the Company                                                  -       43            90 
                                               -----------------  -------  ------------ 
 Profit attributable to ordinary equity 
  holders of the Company - numerator 
  for basic/diluted earnings per Ordinary 
  Share from continuing operations                           403      551         1,627 
                                               -----------------  -------  ------------ 
 
                                                          Number   Number        Number 
                                                              of       of            of 
                                                          Shares   Shares        Shares 
                                               -----------------  -------  ------------ 
 Denominator computations 
 Weighted average number of Ordinary 
  Shares (millions) outstanding for 
  the financial period                                     785.4    808.7         801.3 
 Effect of dilutive potential Ordinary 
  Shares (employee share options) (millions)                 4.8      4.4           6.4 
                                               -----------------  -------  ------------ 
 Denominator for diluted earnings per 
  Ordinary Share                                           790.2    813.1         807.7 
                                               -----------------  -------  ------------ 
 
 Earnings per Ordinary Share 
  - basic                                                  51.3c    73.5c        214.3c 
  - diluted                                                51.0c    73.1c        212.6c 
 
 Earnings per Ordinary Share from continuing 
  operations 
  - basic (i)                                              51.3c    68.1c        203.0c 
  - diluted                                                51.0c    67.8c        201.4c 
                                               =================  =======  ============ 
 
 

(i) Basic earnings per Ordinary Share from continuing operations were 25% lower than prior year at 51.3c (H1 2019: 68.1c), primarily reflecting lower profit on divestments.

   7.   Dividends 
 
                                                     Unaudited                 Year ended 
                                                        Six months ended 30   31 December 
                                                                       June 
                                                               2020    2019          2019 
                                               --------------------  ------  ------------ 
 Net dividend paid per share (i)                              70.0c   59.2c         81.2c 
 Net dividend declared for the period 
  (i)                                                         22.0c   22.0c         92.0c 
 Dividend cover (Earnings per share/Dividend 
  declared per share) - continuing 
  and discontinued operations                                  2.3x    3.3x          2.3x 
 Dividend cover - continuing operations                        2.3x    3.1x          2.2x 
 
 

(i) The dividends per share disclosed above are presented in US Dollar. 2019 Interim and final dividends per share declared previously in euro have been translated to US Dollar using the dividend record date exchange rate. All future dividends will be declared in US Dollar.

The Board has decided to maintain the interim dividend at 22.0c per share in line with prior year. It is proposed to pay the interim dividend on 25 September 2020 to shareholders registered at the close of business on 4 September 2020.

The interim dividend will be paid wholly in cash. If shareholders receive dividend payments in euro or Pounds Sterling, the exchange rate is expected to be set on Friday, 11 September 2020.

Existing currency elections and currency payment defaults will remain in place unless revoked or otherwise amended by shareholders. Therefore, the interim dividend will be paid in euro, Pounds 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 CREST system, continue to be paid automatically in euro, unless a currency election is made. In respect of the interim dividend, the latest date for receipt of currency elections is 4 September 2020.

With effect from the 2020 interim dividend, shareholders holding their shares in the CREST system will have the option to elect to receive dividends electronically via the CREST system. CREST holders wishing to avail of this facility should follow the applicable procedures in the CREST Operating Manual.

   8.   Share of Equity Accounted Investments' (Loss)/Profit 

Continuing operations

The Group's share of joint ventures' and associates' result after tax is equity accounted and is presented as a single line item in the Condensed Consolidated Income Statement; it is analysed as follows between the principal Condensed Consolidated Income Statement captions:

 
                                                  Unaudited                      Year ended 
                                                    Six months ended 30         31 December 
                                                                   June 
                                                            2020   2019              2019 
                                                              $m     $m                $m 
                                            --------------------  -----      ------------ 
 Group share of: 
 Revenue                                                     479    587             1,399 
 EBITDA                                                       35     59               153 
 Operating profit                                              8     28                87 
 (Loss)/profit after tax (i)                                 (3)     16                67 
                                            ====================  =====      ============ 
 
 Analysis of Group share of (loss)/profit 
  after tax: 
 Share of joint ventures' profit after 
  tax                                                          1     17                46 
 Share of associates' (loss)/profit 
  after tax                                                  (4)    (1)                21 
                                            --------------------  -----      ------------ 
 Share of equity accounted investments' 
  (loss)/profit after tax                                    (3)     16                67 
                                            ====================  =====      ============ 
 
 

(i) Share of profit after tax including discontinued operations amounted to $23 million for the six months ended 30 June 2019 (31 December 2019: $81 million).

     9.   Assets Held for Sale and Discontinued Operations 

As disclosed in our 2019 Annual Report and Form 20-F, in October 2019, the Group completed the divestment of its Europe Distribution business, formerly part of our Building Products segment. With the exception of our Europe Distribution business in 2019, no other businesses divested in 2020 or 2019 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.

Assets and liabilities that met the IFRS 5 criteria at 30 June 2020 and 30 June 2019 have not been separately disclosed as held for sale as they were not considered material in the context of the Group.

R esults of discontinued operations

The results of the discontinued operations included in the Group profit for the financial period are set out as follows:

 
                                                              Unaudited 
                                               Six months ended 30 June 
                                                                   2019 
                                                                     $m 
                                                                 ------ 
 Revenue                                                          2,086 
                                                                 ====== 
 
 EBITDA                                                             119 
 Depreciation                                                      (66) 
 Amortisation                                                       (1) 
                                                                 ------ 
 Operating profit                                                    52 
 Profit on disposals                                                  2 
                                                                 ------ 
 Profit before finance costs                                         54 
 Finance costs                                                      (5) 
 Share of equity accounted investments' profit                        7 
                                                                 ------ 
 Profit before tax                                                   56 
 Attributable income tax expense                                   (12) 
                                                                 ------ 
 Profit after tax for the financial period from discontinued 
  operations                                                         44 
                                                                 ====== 
 
 Profit attributable to: 
 Equity holders of the Company                                       43 
 Non-controlling interests                                            1 
                                                                 ------ 
 Profit for the financial period from discontinued operations        44 
                                                                 ====== 
 
 Basic earnings per Ordinary Share from discontinued 
  operations                                                       5.4c 
 Diluted earnings per Ordinary Share from discontinued 
  operations                                                       5.3c 
                                                                 ====== 
 
 Cash flows from discontinued operations 
 Net cash inflow from operating activities                           20 
 Net cash outflow from investing 
  activities                                                       (10) 
 Net cash outflow from financing 
  activities                                                       (46) 
                                                                 ------ 
 Net cash outflow                                                  (36) 
                                                                 ====== 
 

10. Future Purchase Commitments for Property, Plant and Equipment

 
                                             Unaudited               Year ended 
                                                 Six months ended   31 December 
                                                          30 June 
                                                      2020   2019          2019 
                                                        $m     $m            $m 
                                         -----------------  -----  ------------ 
 
 Contracted for but not provided in 
  these Condensed Consolidated Interim 
  Financial Statements                                 309    568           419 
                                         =================  =====  ============ 
 
 

11. Net Finance Costs

 
 Continuing operations 
 
                                               Unaudited               Year ended 
                                                   Six months ended   31 December 
                                                            30 June 
                                                        2020   2019          2019 
                                                          $m     $m            $m 
                                           -----------------  -----  ------------ 
 Finance costs                                           206    207           387 
 Finance income                                          (2)    (8)          (22) 
 Other financial expense                                  48     62           125 
                                           -----------------  -----  ------------ 
 Total net finance costs                                 252    261           490 
                                           =================  =====  ============ 
 
 The overall total is analysed as 
  follows: 
 Net finance costs on interest-bearing 
  loans and borrowings and cash and 
  cash equivalents                                       203    196           367 
 Net cost/(credit) re change in fair 
  value of derivatives and fixed rate 
  debt                                                     1      3           (2) 
                                           -----------------  -----  ------------ 
 Finance costs less income                               204    199           365 
 Unwinding of discount element of 
  lease liabilities                                       35     34            69 
 Unwinding of discount element of 
  provisions for liabilities                              10     13            25 
 Unwinding of discount applicable 
  to deferred and contingent acquisition 
  consideration                                           11      8            16 
 Unwinding of discount applicable                       (14)      -             - 
  to deferred and contingent divestment 
  proceeds 
 Unwinding of discount applicable                          1      -             - 
  to leased mineral reserves 
 Pension-related finance costs (net)                       5      7            15 
 Total net finance costs                                 252    261           490 
                                           =================  =====  ============ 
 
 

12. Net Debt

Components of net debt

Net debt is a non-GAAP measure which we provide to investors as we believe they find it useful. Net debt comprises lease liabilities under IFRS 16, cash and cash equivalents, derivative financial instrument assets and liabilities and interest-bearing loans and borrowings and enables investors to see the economic effects of these in total. Net debt is commonly used in computations such as Net Debt as a % of total equity and Net Debt as a % of market capitalisation.

 
                                          Unaudited   Unaudited         As at 
                                           As at 30    As at 30   31 December 
                                               June        June 
                                               2020        2019          2019 
                                                 $m          $m            $m 
                                         ----------  ----------  ------------ 
 Lease liabilities under IFRS 16            (1,609)     (2,116)       (1,697) 
 Interest-bearing loans and borrowings     (16,437)    (11,186)      (10,127) 
 Derivative financial instruments               194          74            74 
 Cash and cash equivalents                   10,088       1,592         4,218 
                                         ----------  ----------  ------------ 
 Group net debt                             (7,764)    (11,636)       (7,532) 
                                         ==========  ==========  ============ 
 
 
                                           Unaudited   Unaudited         As at 
                                            As at 30    As at 30   31 December 
                                                June        June 
                                                2020        2019          2019 
 Reconciliation of opening to closing             $m          $m            $m 
  net debt: 
                                          ----------  ----------  ------------ 
 At 1 January                                (7,532)     (7,998)       (7,998) 
 Movement in period 
 Effect of adopting IFRS 16                        -     (2,237)       (2,237) 
 Debt, including lease liabilities, 
  in acquired companies                          (9)        (31)          (81) 
 Debt, including lease liabilities, 
  in disposed companies                            -          43           463 
 Increase in interest-bearing loans 
  and borrowings                             (6,174)     (1,077)         (106) 
 Net increase in lease liabilities 
  under IFRS 16                                 (65)        (62)         (184) 
 Net cash flow arising from derivative 
  financial instruments                         (51)          11            40 
 Repayment of interest-bearing loans 
  and borrowings                                  26         592           640 
 Repayment of lease liabilities under 
  IFRS 16                                        132         190           356 
 Mark-to-market adjustment                       (4)          30            28 
 Translation adjustment on financing 
  activities                                      43         (3)            15 
                                          ----------  ----------  ------------ 
 Increase in liabilities from financing 
  activities                                 (6,102)     (2,544)       (1,066) 
 Translation adjustment on cash and 
  cash equivalents                                30        (22)          (20) 
 Increase/(decrease) in cash and cash 
  equivalents                                  5,840     (1,072)         1,552 
 At 30 June                                  (7,764)    (11,636)       (7,532) 
                                          ==========  ==========  ============ 
 

12. Net Debt - continued

 
                                          Unaudited             Unaudited              As at 
                                          As at 30              As at 30            31 December 
                                             June                  June 
                                       Fair       Book       Fair       Book      Fair      Book 
                                       value      value      value      value     Value     value 
                                        (i)                   (i)                  (i) 
                                            2020                  2019                 2019 
 Net debt                                  $m         $m         $m         $m        $m        $m 
                                    ---------  ---------  ---------  ---------  --------  -------- 
 Non-current assets 
 Derivative financial instruments         190        190         89         89        85        85 
 Current assets 
 Derivative financial instruments          27         27         10         10         7         7 
 Cash and cash equivalents             10,088     10,088      1,592      1,592     4,218     4,218 
 Non-current liabilities 
 Interest-bearing loans 
  and borrowings                     (15,740)   (15,108)   (10,375)   (10,022)   (9,838)   (9,211) 
 Derivative financial instruments         (5)        (5)          -          -       (1)       (1) 
 Lease liabilities under 
  IFRS 16                             (1,326)    (1,326)    (1,709)    (1,709)   (1,393)   (1,393) 
 Current liabilities 
 Interest-bearing loans 
  and borrowings                      (1,329)    (1,329)    (1,164)    (1,164)     (916)     (916) 
 Derivative financial instruments        (18)       (18)       (25)       (25)      (17)      (17) 
 Lease liabilities under 
  IFRS 16                               (283)      (283)      (407)      (407)     (304)     (304) 
                                    ---------  ---------  ---------  ---------  --------  -------- 
 Group net debt                       (8,396)    (7,764)   (11,989)   (11,636)   (8,159)   (7,532) 
                                    =========  =========  =========  =========  ========  ======== 
 
   (i)     All interest-bearing loans and borrowings are Level 2 fair value measurements. 
 
                                            Unaudited   Unaudited         As at 
                                                As at       As at   31 December 
                                              30 June     30 June 
                                                 2020        2019          2019 
 Gross debt, net of derivatives, matures           $m          $m            $m 
  as follows: 
                                           ----------  ----------  ------------ 
 Within one year                                1,603       1,586         1,230 
 Between one and two years                        915       1,566         1,319 
 Between two and three years                    1,520         939           628 
 Between three and four years                   1,376       1,482           994 
 Between four and five years                    5,290         846           798 
 After five years                               7,148       6,809         6,781 
                                           ----------  ----------  ------------ 
 Total                                         17,852      13,228        11,750 
                                           ==========  ==========  ============ 
 

In April 2020, the Group successfully issued a total of EUR2.0 billion in euro denominated bonds at a weighted average maturity of 7 years and with a weighted average interest rate of 1.35%. In July 2020, the Group exercised a par-call option to repay a EUR750 million bond originally due to mature in October 2020.

Market capitalisation

Market capitalisation, calculated as the period-end share price multiplied by the number of Ordinary Shares in issue, is as follows:

 
                                            Unaudited   Unaudited         As at 
                                                As at       As at   31 December 
                                              30 June     30 June 
                                                 2020        2019          2019 
                                                   $m          $m            $m 
                                           ----------  ----------  ------------ 
 Market capitalisation - Euronext Dublin 
  (i)                                          26,795      26,149        31,640 
                                           ==========  ==========  ============ 
 

(i) The market capitalisation figure of EUR23.9 billion (30 June 2019: EUR23.0 billion and 31 December 2019: EUR28.2 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.

12. 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 30 June 2020.

 
                                 Unaudited   Unaudited         As at 
                                     As at       As at   31 December 
                                   30 June     30 June 
                                      2020        2019          2019 
                                        $m          $m            $m 
                                ----------  ----------  ------------ 
 Between one and two years              11           -            13 
 Between two and three years             5          15             5 
 Between three and four years            -          62            57 
 Between four and five years             -       3,983         3,932 
 After five years                       29           -            48 
                                ----------  ----------  ------------ 
 Total                                  45       4,060         4,055 
                                ==========  ==========  ============ 
 

The Group successfully carried out an amendment of its EUR3.5 billion revolving credit facility in March 2020 whereby the Group extended the maturity date of the facility for a further year to 2025. In April 2020, as a liquidity precaution against the evolving COVID-19 pandemic, the EUR3.5 billion revolving credit facility was drawn down in full. EUR1.75 billion has been repaid since the balance sheet date.

Guarantees

The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $15.8 billion in respect of loans and borrowings, bank advances and derivative obligations (30 June 2019: $10.6 billion and 31 December 2019: $9.6 billion) and $0.4 billion in respect of letters of credit (30 June 2019: $0.4 billion and 31 December 2019: $0.4 billion).

Net debt metrics

The net debt metrics based on net debt as shown on page 27, EBITDA as defined on page 35 and net debt-related interest as shown in note 11 are as follows:

 
                                                 Unaudited               Year ended 
                                                     Six months ended   31 December 
                                                              30 June 
                                                          2020   2019          2019 
                                             -----------------  -----  ------------ 
 EBITDA net interest cover 
  (times) -                   - six months 
  continuing operations        to 30 June                  7.8    8.1             - 
  - rolling 12 
   months                                                 12.0   10.7          12.3 
 EBIT net interest cover 
  (times) -                   - six months 
  continuing operations        to 30 June                  3.7    4.0             - 
  - rolling 12 
   months                                                  7.5    6.7           7.7 
 
 Net debt as a percentage 
  of market capitalisation                                 29%    45%           24% 
 Net debt as a percentage 
  of total equity                                          41%    63%           38% 
 
 

13. Fair Value of Financial Instruments

The table below sets out the valuation basis of financial instruments held at fair value by the Group:

 
                                           Level 2 (i)                   Level 3 (i) 
                                  ----------------------------  ---------------------------- 
                                     Unaudited           As at     Unaudited           As at 
                                     As at 30                      As at 30 
                                        June       31 December        June       31 December 
                                    2020    2019          2019    2020    2019          2019 
                                      $m      $m            $m      $m      $m            $m 
                                  ------  ------  ------------  ------  ------  ------------ 
 Assets measured at fair 
  value 
 Fair value hedges - interest 
  rate swaps                         189      87            84       -       -             - 
 Cash flow hedges - currency 
  and commodity forwards              13       9             4       -       -             - 
 Net investment hedges - 
  currency swaps                       9       3             3       -       -             - 
 Not designated as hedges 
  (held for trading) - currency 
  swaps and forwards                   6       -             1       -       -        - 
                                  ------  ------  ------------  ------  ------  ------------ 
 Total                               217      99            92       -       -             - 
                                  ======  ======  ============  ======  ======  ============ 
 Liabilities measured at 
  fair value 
 Cash flow hedges - currency 
  and commodity forwards            (20)     (9)          (10)       -       -             - 
 Net investment hedges - 
  currency swaps                     (3)    (12)           (4)       -       -             - 
 Not designated as hedges 
  (held for trading) - currency 
  swaps and forwards                   -     (4)           (4)       -       -             - 
 Contingent consideration              -       -             -   (295)   (264)         (278) 
                                  ------  ------  ------------  ------  ------  ------------ 
 Total                              (23)    (25)          (18)   (295)   (264)         (278) 
                                  ======  ======  ============  ======  ======  ============ 
 
 

The carrying amount of trade and other payables approximate their fair value largely due to the short-term maturities and nature of these instruments. There were no transfers between Levels 2 and 3 during the periods.

There were no significant changes in contingent consideration recognised in profit or loss or other comprehensive income in the current period. Further details in relation to the inputs into valuation models for contingent consideration are available in the Group's 2019 Annual Report and Form 20-F.

(i) For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety.

14. Business Combinations

The acquisitions completed during the period ended 30 June 2020 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:

Georgia: Chester White Construction, Inc. (12 June); and

Mississippi: WG Construction (19 February).

Europe Materials:

France: Calexy (21 January) and Bras-Panon (31 March); and

Spain: Formigons Palafolls S.L. (10 January).

Building Products:

Colorado: US Mix Co. (21 February);

Minnesota: Suttle Solutions (11 March); and

Tennessee: Highline Products (13 January).

The acquisition balance sheet presented on the following page reflects the identifiable net assets acquired in respect of acquisitions completed during 2020, together with adjustments to provisional fair values (to the extent identified as of 30 June 2020) in respect of acquisitions completed during 2019. The measurement period for a number of acquisitions completed in 2019, closed in 2020 with no material adjustments identified.

14. Business Combinations - continued

The identifiable net assets acquired, including adjustments to provisional fair values, were as follows:

 
                                                         Unaudited                   Year ended 
                                                         Six months ended 30 June   31 December 
                                                                      2020   2019          2019 
       ASSETS                                                           $m     $m            $m 
                                                 -------------------------  -----  ------------ 
       Non-current assets 
       Property, plant and equipment                                    35    169           358 
       Intangible assets                                                12     38           103 
       Total non-current assets                                         47    207           461 
                                                 -------------------------  -----  ------------ 
 
       Current assets 
       Inventories                                                       9     27            65 
       Trade and other receivables (i)                                   7     31            73 
       Cash and cash equivalents                                         -      2            11 
                                                 -------------------------  -----  ------------ 
       Total current assets                                             16     60           149 
                                                 -------------------------  -----  ------------ 
 
       LIABILITIES 
       Trade and other payables                                        (3)   (33)          (82) 
       Provisions for liabilities                                        -      -           (7) 
       Retirement benefit obligations                                    -    (1)           (1) 
       Lease liabilities                                               (9)   (26)          (71) 
       Interest-bearing loans and borrowings                             -    (5)          (10) 
       Current income tax liabilities                                    -      1            10 
       Deferred income tax liabilities                                   -    (5)             - 
                                                 -------------------------  -----  ------------ 
       Total liabilities                                              (12)   (69)         (161) 
                                                 -------------------------  -----  ------------ 
 
       Total identifiable net assets at 
        fair value                                                      51    198           449 
       Goodwill arising on acquisition 
        (ii)                                                            52    141           310 
       Non-controlling interests*                                        -    (2)           (1) 
                                                 -------------------------  -----  ------------ 
       Total consideration                                             103    337           758 
                                                 =========================  =====  ============ 
 
       Consideration satisfied by: 
       Cash payments                                                    96    324           738 
       Deferred consideration (stated 
        at net present cost)                                             7      9            12 
       Contingent consideration                                          -      4             8 
       Total consideration                                             103    337           758 
                                                 =========================  =====  ============ 
 
       Net cash outflow arising on acquisition 
       Cash consideration                                               96    324           738 
       Less: cash and cash equivalents 
        acquired                                                         -    (2)          (11) 
                                                 -------------------------  -----  ------------ 
       Total outflow in the Condensed 
        Consolidated Statement of Cash 
        Flows                                                           96    322           727 
                                                 =========================  =====  ============ 
 
 

* Non-controlling interests are measured at the proportionate share of net assets.

Footnotes (i) and (ii) appear on page 32.

14. Business Combinations - continued

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. None of the acquisitions completed during the financial period were considered sufficiently material to warrant separate disclosure of the attributable fair values. The initial assignment of the fair values to identifiable assets acquired and liabilities assumed as disclosed are provisional (principally in respect of property, plant and equipment) in respect of certain acquisitions due to timing of close. 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 31

(i) The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to $7 million (30 June 2019: $31 million). The fair value of these receivables is $7 million (30 June 2019: $31 million), all of which is expected to be recoverable.

(ii) The principal factor contributing to the recognition of goodwill on acquisitions entered into by the Group is the realisation of cost savings and other synergies with existing entities in the Group which do not qualify for separate recognition as intangible assets. Due to the asset-intensive nature of operations in the Americas Materials and Europe Materials business segments, no significant separately identifiable intangible assets are recognised on business combinations in these segments. $45 million of the goodwill recognised in respect of acquisitions completed in 2020 is expected to be deductible for tax purposes (30 June 2019: $109 million).

Acquisition-related costs

Acquisition-related costs, which exclude post-acquisition integration costs, amounting to $1 million (H1 2019: $2 million) have been included in operating costs in the Condensed Consolidated Income Statement.

The following table analyses the 8 acquisitions completed in 2020 (H1 2019: 25 acquisitions) by reportable segment and provides details of the goodwill and consideration figures arising in each of those segments:

 
                                                           Six months ended 30 June - Unaudited 
                                           ------------------------------------------------------------------- 
                                             Number of acquisitions               Goodwill      Consideration 
                                                    2020        2019          2020      2019     2020     2019 
 Reportable segments                                                            $m        $m       $m       $m 
                                           -------------  ----------      --------  --------  -------  ------- 
 Continuing operations 
 Americas Materials                                    2          16            10        35       23      154 
 Europe Materials                                      3           1             -         -        6        5 
 Building Products                                     3           7            32        83       70      174 
Total Group from continuing operations                 8          24            42       118       99      333 
 
 Discontinued operations 
 Europe Distribution                                   -           1             -         -        -        4 
 Total Group                                           8          25            42       118       99      337 
 
Adjustments to provisional fair values of prior period acquisitions             10        23        4        - 
 
 Total                                                                          52       141      103      337 
 
 

Post-acquisition impact

The post-acquisition impact of acquisitions completed during the period on the Group's profit for the financial period was as follows:

 
                                                 Unaudited 
                                                    Six months ended 
                                                             30 June 
                                                          2020  2019 
Continuing operations                                       $m    $m 
 Revenue                                                    35    54 
 Profit before tax for the financial period                  2     2 
 
 

14. Business Combinations - continued

The revenue and profit of the Group for the financial period determined in accordance with IFRS as though the acquisitions effected during the period had been at the beginning of the period would have been as follows:

 
                                                           Pro-forma 2020 
                                                                CRH Group     Pro-forma 
                                                      2020      excluding  Consolidated 
                                                                     2020 
                                              acquisitions   acquisitions         Group 
                                                        $m             $m            $m 
                                             -------------  ------------- 
Revenue                                                 42         12,180        12,222 
Profit before tax for the financial period               3            516           519 
 

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. Related Party Transactions

There have been no related party transactions or changes in the nature and scale of the related party transactions described in the 2019 Annual Report and Form 20-F that could have had a material impact on the financial position or performance of the Group in the first six months of 2020.

16. Retirement Benefit Obligations

The Group operates either defined benefit or defined contribution pension schemes in all of its principal operating areas.

In consultation with the actuaries to the various defined benefit pension schemes (including jubilee schemes, long-term service commitments and post-retirement healthcare obligations, where relevant), the valuations of the applicable assets and liabilities have been marked-to-market as at the end of the financial period, taking account of prevailing bid values, actual investment returns, corporate bond yields and other matters such as updated actuarial valuations conducted during the period.

Financial assumptions - scheme liabilities

The discount rates used by the Group's actuaries in the computation of the pension scheme liabilities and post-retirement healthcare obligations are as follows:

 
                                 Unaudited               Year ended 
                                   Six months ended 30  31 December 
                                                  June 
                                           2020   2019         2019 
                                              %      %            % 
 Eurozone                                  1.57   1.46         1.43 
 United States and Canada                  2.57   3.30         3.14 
 Switzerland                               0.35   0.40         0.30 
 
 

16. Retirement Benefit Obligations - continued

The following table provides a reconciliation of scheme assets (at bid value) and the actuarial value of scheme liabilities (using the aforementioned assumptions):

 
                                                       Six months ended 30 June - Unaudited 
                                                     Assets        Liabilities      Net liability 
                                                   2020   2019      2020     2019     2020    2019 
                                                     $m     $m        $m       $m       $m      $m 
                                                                -------- 
       At 1 January                               3,013  3,335   (3,493)  (3,821)    (480)   (486) 
       Administration expenses (i)                  (2)    (2)         -        -      (2)     (2) 
       Current service cost (i)                       -      -      (26)     (36)     (26)    (36) 
       Interest income on scheme assets 
        (i)                                          28     39         -        -       28      39 
       Interest cost on scheme liabilities 
        (i)                                           -      -      (33)     (46)     (33)    (46) 
       Arising on acquisition                         -      -         -      (1)        -     (1) 
       Remeasurement adjustments: 
       -return on scheme assets excluding 
        interest income                            (10)    246         -        -     (10)     246 
       -actuarial loss from changes 
        in financial assumptions                      -      -      (74)    (394)     (74)   (394) 
       Employer contributions paid                   20     30         -        -       20      30 
       Contributions paid by plan participants        4      8       (4)      (8)        -       - 
       Benefit and settlement payments             (72)   (73)        72       73        -       - 
       Translation adjustment                      (26)     12        34     (14)        8     (2) 
       At 30 June                                 2,955  3,595   (3,524)  (4,247)    (569)   (652) 
       Related deferred income tax 
        asset                                                                          120     128 
                                                                                   ------- 
       Net pension liability                                                         (449)   (524) 
 

(i) The net expense to the Condensed Consolidated Income Statement for the six months ended 30 June 2019 includes an expense of $11 million relating to discontinued operations.

17. Taxation

The taxation expense for the interim period is an estimate based on the expected full year effective tax rate on full year profits.

18. Statutory Accounts and Audit Opinion

The financial information presented in this interim report does not represent full statutory accounts as defined by the Companies Act 2014 and has not been reviewed or audited by the Company's auditors, Deloitte Ireland LLP. A copy of the full statutory accounts for the year ended 31 December 2019 presented in euro and prepared in accordance with IFRS, have been filed with the Registrar of Companies. Ernst & Young, the Company's previous auditors, reported on the 31 December 2019 full statutory accounts and have issued an unqualified audit report. Ernst & Young will issue an audit opinion on the re-presented US Dollar 2019 financial statements, as part of the completion of the 2020 statutory financial statements.

19. Board Approval

This announcement was approved by the Board of Directors of CRH plc on 19 August 2020.

20. Distribution of Interim Report

This interim report is available on the Group's website (www.crh.com). A printed copy is available to the public at the Company's registered office.

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 before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Group's share of equity accounted investments' result 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 and operating profit by segment are monitored by management in order to allocate resources between segments and to assess performance. Given that net finance costs and income tax are managed on a centralised basis, these items are not allocated between operating segments for the purpose of the information presented to the Chief Operating Decision Maker (Group Chief Executive and Finance Director). EBITDA margin is calculated by expressing EBITDA as a percentage of revenue.

Operating profit (EBIT) is defined as earnings before interest, taxes, profit on disposals and the Group's share of equity accounted investments' result after tax.

A reconciliation of Group profit before tax to EBITDA is presented below.

 
                                                                       Continuing Operations 
                                                                  Unaudited              Year ended 
                                                              Six months ended 30 June  31 December 
                                                                           2020   2019         2019 
                                                                             $m     $m           $m 
Group profit for the financial period                                       406    558        1,647 
Income tax expense - estimated at interim                                   112    159          534 
Profit before tax                                                           518    717        2,181 
Share of equity accounted investments' loss/(profit)                          3   (16)         (67) 
Other financial expense                                                      48     62          125 
Finance costs less income                                                   204    199          365 
Profit before finance costs                                                 773    962        2,604 
(Profit)/loss on disposals                                                  (9)  (166)          189 
Group operating profit                                                      764    796        2,793 
Depreciation charge                                                         789    793        1,613 
Amortisation of intangibles                                                  37     32           64 
Impairment charge                                                             -      -            8 
EBITDA                                                                    1,590  1,621        4,478 
 
 

Glossary of Alternative Performance Measures - continued

EBITDA Net Interest Cover

EBITDA net interest cover is used by management as a measure which matches the earnings and cash generated by the business to the underlying funding costs. EBITDA net interest cover is presented to provide investors with a greater understanding of the impact of CRH's debt and financing arrangements.

It is calculated below:

 
                                                                 Continuing Operations 
                                                      Unaudited                         Year ended 
                                                                 Six months ended      31 December 
                                                                          30 June 
                                                                      2020   2019               2019 
                                                                        $m     $m                 $m 
                                                                                       ------------- 
Interest 
Finance costs (i)                                                      206    207                387 
Finance income (i)                                                     (2)    (8)               (22) 
Net interest                                                           204    199                365 
 
EBITDA                                                               1,590  1,621              4,478 
 
EBITDA net interest cover (EBITDA divided 
 by net interest)                                                     7.8x   8.1x              12.3x 
 
 
 
                                                 Unaudited 
                                             Rolling 12 months 
                                               ended 30 June 
                                                 2020      2019 
                                                   $m        $m 
                                            ---------  -------- 
Interest - continuing operations 
Net interest - full year prior year (2019 
 and 2018)                                        365       360 
Net interest - H1 prior year (2019 and 
 2018)                                          (199)     (174) 
Net interest - H2 prior year (2019 and 
 2018)                                            166       186 
Net interest - H1 current year (2020 
 and 2019)                                        204       199 
Net interest - rolling 12 months to 
 30 June                                          370       385 
 
EBITDA - continuing operations 
EBITDA - full year prior year (2019 and 
 2018)                                          4,478     3,799 
EBITDA - H1 prior year (2019 and 2018)        (1,621)   (1,299) 
EBITDA - H2 prior year (2019 and 2018)          2,857     2,500 
EBITDA - H1 current year (2020 and 2019)        1,590     1,621 
EBITDA - rolling 12 months to 30 June           4,447     4,121 
 
                                                Times     Times 
EBITDA net interest cover (EBITDA divided 
 by net interest)                                12.0      10.7 
 

(i) These items appear on the Condensed Consolidated Income Statement on page 9.

EBIT net interest cover is the ratio of EBIT to net debt-related interest costs.

Glossary of Alternative Performance Measures - continued

Net Debt and Net Debt/EBITDA

Net debt is used by management as it gives a more complete picture of the Group's current debt situation than total interest-bearing loans and borrowings. Net debt is provided to enable investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. Net debt is a non-GAAP measure and comprises current and non-current interest-bearing loans and borrowings, lease liabilities under IFRS 16, cash and cash equivalents and current and non-current derivative financial instruments.

Net Debt/EBITDA is monitored by management and is useful to investors in assessing the Company's level of indebtedness relative to its profitability and cash-generating capabilities. It is the ratio of Net Debt to EBITDA and is calculated below:

 
                                                            Year ended 
                                                           31 December 
                                                                  2019 
                                                                    $m 
                                                          ------------ 
Net debt 
Lease liabilities under IFRS 16 (i)                            (1,697) 
Interest-bearing loans and borrowings (i)                     (10,127) 
Derivative financial instruments (net) (i)                          74 
Cash and cash equivalents (i)                                    4,218 
Group net debt                                                 (7,532) 
 
EBITDA - from continuing operations                              4,478 
 
                                                                 Times 
                                                          ------------ 
Net debt divided by EBITDA - from continuing operations            1.7 
                                                          ============ 
 
   (i)    These items appear in note 12 on page 27. 

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 period, the Group uses organic revenue, organic operating profit and organic EBITDA as additional performance indicators to assess performance of pre-existing operations each period.

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 2020, 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 adverse economic conditions: Construction activity, and therefore demand for the Group's products, is inherently cyclical as it is influenced by global and national economic circumstances, governments' ability to fund infrastructure projects, consumer sentiment and weather conditions. The Group may also be negatively impacted by unfavourable swings in fuel and other commodity/raw material prices. Failure to predict and plan for cyclical events or adverse economic conditions could negatively impact financial performance.

Portfolio management: The Group may engage in acquisition and divestment activity during the year as part of the Group's 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 identify and execute deals in an efficient manner may limit the Group's growth potential and impact financial performance.

Brexit: Uncertainties resulting from the UK's withdrawal from the European Union could pose challenges with currency devaluations, a fall in construction activity in the UK, challenges in labour resources accessing the UK, movement of goods and services and repatriating earnings. Failure by the Group to manage the uncertainties posed by Brexit could result in adverse financial performance and a fall in the Group's net worth.

Commodity products and substitution: Many of the Group's products are commodities, which face strong volume and price competition, and may be replaced by substitute products which the Group does not produce. Further, the Group must maintain strong customer relationships to ensure changing consumer preferences are addressed. Failure to differentiate and innovate could lead to market share decline, thus adversely impacting financial performance.

Geopolitical and/or social instability: Adverse and fast changing economic, social, political and public health situations in any country in which the Group operates could lead to business interruption, restrictions on repatriation of earnings or a loss of plant access. Changes in these conditions may adversely affect the Group's business, results of operations, financial condition or prospects.

Strategic mineral reserves: Appropriate reserves are an increasingly scarce commodity and licences and/or permits required to enable operation are becoming harder to secure. There are numerous uncertainties inherent in reserves estimation and in projecting future rates of production. Failure by the Group to plan for reserve depletion, or to secure permits, may result in operation stoppages, adversely impacting financial performance.

People management: Existing processes around people management (such as attracting, retaining and developing people, leadership succession planning, as well as dealing with collective representation groups) may not deliver, inhibiting the Group achieving its strategy. Failure to effectively manage talent and plan for leadership succession could impede the realisation of strategic objectives.

Joint ventures and associates: The Group does not have a controlling interest in certain of the businesses (i.e. joint ventures and associates) in which it has invested and may invest, which gives rise to increased governance complexity and a need for proactive relationship management. The lack of a controlling interest could impair the Group's ability to manage joint ventures and associates effectively and/or realise its strategic goals for these businesses.

Principal Operational Risks and Uncertainties

COVID-19 pandemic: The recent emergence and spread of the COVID-19 pandemic has had a material impact across the construction markets in which the Group operates. The continued uncertainty around the global pandemic, which may further adversely impact the Group's operations through a fall in demand for the Group's products, a reduction in staff availability and business interruption, could have a material impact on the Group's operating results, cashflows, financial condition and/or prospects.

Climate change and policy: The cement industry has recognised the impact of climate change and its responsibilities in transitioning to a lower carbon economy. The Group is exposed to financial, reputational and market risks arising from changes to CO(2) policies and regulations. Should the Group not reduce its greenhouse gases (GHGs) emissions by its identified targets, or should CO(2) policies or regulations change unexpectedly, the Group may be subject to increased costs, adverse financial performance and reputational damage.

Health and safety performance: The Group's businesses operate in an industry where health and safety risks are inherently prominent. Further, the Group is subject to stringent regulations from a health and safety perspective in the various jurisdictions in which it operates. A serious health and safety incident could have a significant impact on the Group's operational and financial performance, as well as the Group's reputation.

Sustainability and corporate social responsibility: The nature of our activities poses inherent environmental, social and governance (ESG) 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.

Principal Risks and Uncertainties - continued

Information technology and/or cyber security: The Group is dependent on information and operational technology systems to support its business activities. Any significant operational event, whether caused by external attack, insider threat or error, could lead to loss of access to systems or data, adversely impacting business operations. Security breaches, IT interruptions or data loss could result in significant business disruption, loss of production, reputational damage and/or regulatory penalties. Significant financial costs in remediation are also likely in a major cyber security incident.

Principal Compliance Risks and Uncertainties

Laws and regulations: The Group is subject to a wide variety of local and international laws and regulations across the many jurisdictions in which it operates, which vary in complexity, application and frequency of change. Potential breaches of local and international laws and regulations could result in the imposition of significant fines or sanctions and may inflict reputational damage.

Principal Financial and Reporting Risks and Uncertainties

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 not impacting cash flows, a write-down of goodwill could have a material impact on the Group's reported financial income and equity.

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 or inability to maintain certain financial ratios 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.

Defined benefit pension schemes and related obligations: The assets and liabilities of defined benefit pension schemes, in place in certain operating jurisdictions, exhibit significant period-on-period volatility attributable primarily to asset values, changes in bond yields/discount rates and anticipated longevity. Significant cash contributions may be required to remediate deficits applicable to past service. Fluctuations in the accounting surplus/deficit may adversely impact the Group's credit metrics which could increase the cost of, or ultimately, impair the Group's ability to raise funds.

Taxation charge and balance sheet provisioning: The Group is exposed to uncertainties stemming from governmental actions in respect of taxes paid and payable 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 not be borne out in practice. Changes in tax regimes or assessment of additional tax liabilities in future audits could result in incremental tax liabilities which could have a material adverse effect on cash flows, financial condition and results of operations.

Foreign currency translation: The principal foreign exchange risks to which the Condensed 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 would negatively affect retained earnings. The annual impact is reported in the Condensed Consolidated Statement of Comprehensive Income.

Responsibility Statement

The Directors of CRH plc are responsible for preparing the interim management report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 as amended and with IAS 34, as adopted by the European Union.

The Directors of CRH plc, being the persons responsible within CRH plc, confirm that to the best of their knowledge:

1) the Condensed Consolidated Unaudited Financial Statements for the six months ended 30 June 2020 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, the accounting standard applicable to interim financial reporting adopted pursuant to the procedure provided for under Article 6 of Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the six months ended 30 June 2020;

   2)    the interim management report includes a fair review of: 

I. the important events that have occurred during the first six months of the financial year, and their impact on the condensed consolidated set of financial statements;

   II.    the principal risks and uncertainties for the remaining six months of the financial year; 

III. any related parties ' transactions that have taken place in the first six months of the current financial year that have materially affected the financial position or the performance of the enterprise during that period; and

IV. any changes in the related parties ' transactions described in the 2019 Annual Report and Form 20-F that could have had a material effect on the financial position or performance of the enterprise in the first six months of the current financial year.

 
Albert Manifold  Chief Executive 
 
Senan Murphy     Finance Director 
 

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. 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", "estimates", "believes", "intends" 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, as detailed in the section entitled "Risk Factors" in our 2019 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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