CRH is divided into six regionally focussed business segments, three in the Americas and three in Europe, supported by a lean Group centre. Within these segments:

• experienced operational management are given a high degree of individual responsibility
• local autonomy, within Group guidelines and controls, helps accommodate national and cultural needs and capitalises on local market knowledge
• the Group’s size and structure is leveraged to drive margin improvement and earnings growth
• product-based best practice teams promote performance improvement through the sharing of experience, technologies and ideas

CRH was founded in 1970 following the merger of two major Irish companies, Irish Cement and Roadstone. Shortly afterwards the Board set a clear strategy for the development of the Group which, while it has evolved over the years, is still broadly applicable.

This strategy involves:

• sticking to core businesses in building materials and building regional market leadership positions
• reinvesting in existing assets and people to be the low cost market leader
• gaining exposure to new development opportunities which create horizons for future growth
• negotiating deals that meet sellers’ and CRH’s needs
• implementation by devolved development teams reporting to regional and product group managers
• a rigorous approach to the evaluation, approval and subsequent performance review of all projects

CRH has twin imperatives – to perform and to grow. Throughout the Group, businesses are required to deliver performance by achieving a targeted return on capital employed thereby earning the right to grow.

• key performance metrics are understood and consistently applied across the Group
• financial control is exercised through a rigorous annual budgeting process and timely monthly reporting
• monthly results are vetted by Divisional management and critically reviewed at Group headquarters
• full year performance is regularly reforecast under prudent accounting policies
• best practice initiatives in production, distribution and administration are benchmarked against quantified targets

Growth is achieved:

• through investing in new capacity
• from developing new products and markets
• by acquiring and growing mid-sized companies, augmented from time to time with larger deals

CRH has a highly experienced management team and the development of talented successors is a priority of all managers. Regular formal reviews of management development strategy are carried out by each Division with guidance and support provided by the Group Human Resources function.

Managers come from three very different streams, comprising:

• internally developed operating managers who have room to grow
• highly qualified finance and development professionals, business builders with vision
• owner-entrepreneurs who have joined with their companies and question the status quo

This provides a healthy mix and depth of skills and a wealth of experience at senior level with many managers having managed through previous economic cycles.

CRH’s market-driven approach is central to attracting, retaining and motivating exceptional managers. Performance-related rewards are based on measured targets for the creation of shareholder value.

• there is potential for a high proportion of compensation to be variable
• share options are granted to key managers to encourage identification with shareholders’ long-term interests
• employee share participation and savings related share option schemes create a community of interest among different regions and nationalities

CRH’s strategic vision is to “be an international leader in building materials delivering superior performance and growth”. Corporate responsibility is a core element of this vision.

CRH strives to:

• ensure that our businesses operate in an environmentally responsible manner
• be a responsible employer achieving best practice and international standards of health and safety throughout all of the Group businesses
• be a responsible neighbour and a responsible member of the local communities within which we operate
• ensure that our business is conducted in an ethical and proper manner
• ensure that the Group communicates effectively, coherently and in a timely manner with all of its key stakeholder groups

Regional and product balance

CRH's unique balance, both in terms of geographic spread and involvement across its three core businesses, smooths the effects of varying economic conditions and provides greater opportunities for growth.

	Geographic
Americas	52%
Europe	48%
Total	100%

	Segmental
Materials	41%
Products	36%
Distribution	23%
Total	100%

Sectoral balance

CRH seeks to reduce the effects of varying demand patterns across building and construction end-use sectors by maintaining a balanced portfolio of products serving a broad customer base.

	Product end-use
Residential	40%
Non-residential	30%
Infrastructure	30%
Total	100%
New	55%
Repair, Maintenance & Improvement	45%
Total	100%