Sustainable Performance and Growth - CSR Presentation, August 2005 5 About CRH plc zCRH was formed in

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    SustainableSustainable Performance and GrowthPerformance and Growth

    CSR Presentation, August 2005CSR Presentation, August 2005

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    Introduction to this PresentationIntroduction to this Presentation

    CRH is committed to conducting all its activities in an ethical and responsible manner

    We continually focus on integrating Corporate Social Responsibility (CSR) values into Group operations, with particular regard to our employees, customers, other stakeholders and the environment

    This document, based on data for the calendar year 2004, is designed to give an overview of our CSR activities across the entire Group to the investment community and other interested stakeholders: it is our second CSR Presentation, following the first of October 2004

    The aim is to provide a CSR Presentation which coherently links and explains: Our Strategic Vision

    What CSR means for CRH

    Our CSR Policies

    Our CSR Management, Reporting and Communications

    Our Sustainability Ratings

    This CSR Presentation has been verified by Det Norske Veritas

    We intend to incrementally progress towards reporting in accordance with the GRI (Global Reporting Initiative) Guidelines

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    Contents of this PresentationContents of this Presentation

    73-75Sustainability Ratings 76-77DNV Verification Statement 78-79Relationship to GRI Reporting Guidelines 80Contact for further Information

    71-72Stakeholder Communications

    27-43Environment

    44-54Health & Safety

    4-18Brief Introduction to CRH 19-21Corporate Social Responsibility 22-26Corporate Governance

    55-70Social

    SlidesSection

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    Brief Introduction to CRHBrief Introduction to CRH

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    About CRH plcAbout CRH plc

    CRH was formed in 1970 through a merger of two Irish public companies. These

    were Irish Cement (founded in 1936) and Roadstone (founded in 1949). The Group

    was first called “Cement-Roadstone Holdings”, which was later abbreviated to CRH

    CRH’s strategy since then has been to become an international leader in building

    materials, delivering superior performance and growth, with sustained shareholder

    returns. It has reduced its dependence on individual markets by achieving a balance

    in its geographic presence and portfolio of products

    In 1970 the Group’s sales totalled €26m, 95% of which were in Ireland, while 2004

    sales amounted to €13bn spread over 24 countries. The Group has averaged over

    19% total shareholder return per annum since 1970

    CRH now employs over 60,000 people at 2,100 locations in Europe and in the

    Americas, with its headquarters at Belgard Castle in Dublin

    CRH ranks among the top 5 in its sector worldwide

    Our website www.crh.com contains extensive information about CRH

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    Our Core ActivitiesOur Core Activities

    Precast concrete products; concrete blocks, pavers and rooftiles; clay bricks, pavers and tiles; insulation products; fencing & security; glass, rooflights & ventilation, construction accessories

    Building Products

    Cement, lime, aggregates, asphalt and road paving, readymixed concrete

    Primary Materials

    DIY stores, builders merchanting, specialist distribution

    Distribution

    CRH has a uniquely balanced portfolio of building materials activities

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    Our Organisational StructureOur Organisational Structure

    Primary Materials DistributionBuilding Products

    The key organisational characteristics of CRH plc are:

    A federal Group organised for performance and growth

    A business balanced by product, geography and end use

    An experienced management team

    A remuneration policy that rewards performance

    A responsible corporate ethos

    The Group operates as four Divisions as illustrated below and described in the four

    slides following

    CRH plc

    Americas Products & Distribution

    Americas Materials

    Europe Products & Distribution

    Europe Materials

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    Irl UK Spa Swi Port Pol Fin Est Lat Rus Ukr Tun Isr Volumes Cement 12.6m tonnes Aggregates 74.1m tonnes Asphalt 4.2m tonnes Readymix Concrete 11.5m m3

    Agricultural Lime 1.4m tonnes Concrete Products 7.8m tonnes

    Europe MaterialsEurope Materials

    2004: Sales €2.4bn, margin 14.4%

    400+ locations, 13 countries

    10,100+ employees

    By market; end use is: New construction projects 80%

    Repair, maintenance and improvement 20%

    By sector; end use is: Residential (housing) 40%

    Non-Residential 30%

    Infrastructure (roads, bridges etc.) 30%

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    Europe Products & DistributionEurope Products & Distribution

    Irl UK Por Spa Fr Bel NL Ger Swi Den Swe Pol Fin Est Slov Volumes Concrete Products 13.1m tonnes Clay Products 2.7m tonnes Insulation 5.8m m3

    Fencing & Security 2,000 lineal km Daylight & Ventilation 1.1m m2

    Distribution 381 stores

    2004: Sales €4.1bn, margin 7.6%

    700+ locations, 15 countries

    18,700+ employees

    By market; end use is: New construction projects 60%

    Repair, maintenance and improvement 40%

    By sector; end use is: Residential (housing) 60%

    Non-Residential 30%

    Infrastructure (roads, bridges etc.) 10%

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    Americas MaterialsAmericas Materials

    New England New York / New Jersey Central West Volumes

    Aggregates 134.8m tonnes Asphalt 34.0m tonnes Readymix Concrete 5.9m m 3

    2004: Sales €2.8bn, margin 9.6%

    650+ locations, 28 US States

    13,800+ employees

    By market; end use is: New construction projects 30%

    Repair, maintenance and improvement 70%

    By sector; end use is: Residential (housing) 15%

    Non-Residential 20%

    Infrastructure (roads, bridges etc.) 65%

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    Americas Products & DistributionAmericas Products & Distribution

    USA Canada Argentina Chile Volumes Precast Concrete Products 2.3m tonnes Concrete Products & Mixes 10.7m tonnes Clay Products/Ceramic Tiles 1.6m tonnes Glass 14.1m m 2 Distribution 124 stores

    2004: Sales €3.5bn, margin 9.2%

    400+ locations, 45 US States, 4 Canadian Provinces, Argentina and Chile

    17,800+ employees

    By market; end use is: New construction projects 55%

    Repair, maintenance and improvement 45%

    By sector; end use is: Residential (housing) 50%

    Non-Residential 40%

    Infrastructure (roads, bridges etc.) 10%

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    Our Regional, Product & Sectoral BalanceOur Regional, Product & Sectoral Balance

    CRH has a unique balance of sales by region, product and end-use, ensuring long

    term Performance and Growth in a cyclical industry

    *Based on 2004 sales

    Europe 51%

    Americas 49%

    Materials 40%

    Distrib- ution 23%

    Products 37%

    RegionalRegional ProductProduct

    Non-Res 30%

    Residential 45%

    Infra- structure

    25% RMI 45%

    New 55%

    EndEnd--UseUse

    Sales* are Sales* are balanced by:balanced by:

    RMI= Repair, Maintenance and Improvement

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    Driving our PerformanceDriving our Performance

    After the merger in 1970, the Board set a clear strategy for the development of the Group

    We aim for world-class Performance and Growth in all our activities and regions

    We enhance our Performance by Investing in new capacity Investing in technology to improve quality and efficiency Developing new & innovative products Offering a more focused service to customers Expanding the customer base through new channels Leveraging our brands locally and regionally

    We Continuously Improve by Sharing of Best Practice throughout the Group Leveraging product and process know-how Measuring and re