filings.toolsCRH 2019 20-F Annual Report
CRH · CIK 849395 · Form 20-F · Fiscal year ended December 31, 2019 · Filed March 6, 2020
23 sections, 1073K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
20-F 1 d790396d20f.htm 20-F
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
| (Mark One) | WASHINGTON, D.C. 20549 |
FORM 20-F
☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2019
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
OR
☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
Commission file number: 001-32846
CRH public limited company
(Exact name of Registrant as specified in its charter)
Republic of Ireland
(Jurisdiction of incorporation or organisation)
Stonemason’s Way, Rathfarnham, Dublin 16, Ireland
(Address of principal executive offices)
Senan Murphy
Tel: +353 1 404 1000
Stonemason’s Way, Rathfarnham, Dublin 16, Ireland
(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
| CRH plc | ||||
| Ordinary Shares/Income Shares of €0.34 each | New York Stock Exchange* | |||
| American Depositary Shares, each representing the right to receive one Ordinary Share | CRH | New York Stock Exchange | ||
| CRH America Inc. | ||||
| 5.750% Notes due 2021 guaranteed by CRH plc | CRH/21 | New York Stock Exchange |
–
| * | Not for trading but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission. |
|---|
Securities registered or to be registered pursuant to Section 12(g) of the Act. None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
| Ordinary Shares/Income Shares of €0.34 each ** | 799,640,338 | |||
| 5% Cumulative Preference Shares of €1.27 each | 50,000 | |||
| 7% ‘A’ Cumulative Preference Shares of €1.27 each | 872,000 |
–
| ** | Each Income Share is tied to an Ordinary Share and may only be transferred or otherwise dealt with in conjunction with such Ordinary Share. |
|---|
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes X No ☐
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No X
Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes X No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer X Accelerated filer ☐ Non-accelerated filer ☐ Emerging Growth Company ☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act ☐
| † | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
|---|
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
| U.S. GAAP ☐ | International Financial Reporting Standards as issued by the | Other ☐ | ||
| International Accounting Standards Board X |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ☐ Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No X
Table of Contents
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Table of Contents
| 2019 Annual Report and Form 20-F |
Table of Contents
| Contents | ||||||||||||||||||||
| Overview | Business Performance | Financial Statements | ||||||||||||||||||
| CRH at a glance | 2 | Business Overview | 32 | Independent Auditor’s Reports | 125 | |||||||||||||||
| Chairman’s Introduction | 4 | Finance Director’s Review | 33 | Consolidated Income Statements | 128 | |||||||||||||||
| Strategy Review | Segmental Reviews | 40 | Accounting Policies | 133 | ||||||||||||||||
| Why Invest in Us | 8 | Governance | Notes on Consolidated Financial Statements | 145 | ||||||||||||||||
| Our Executive Leadership | 9 | Board of Directors | 56 | |||||||||||||||||
| Chief Executive’s Review | 10 | Corporate Governance Report | 60 | Supplementary 20-F Disclosures | ||||||||||||||||
| Market Backdrop | 12 | Directors’ Remuneration Report | 74 | 224 | ||||||||||||||||
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Item 1. Identity of Directors, Senior Management and Advisors n/a
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Item 2. Offer Statistics and Expected Timetable n/a
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Item 3. Key Information
| | | | | | | | | | | | | A | | - Selected Financial Data | | | | 224 | | | | | | | | | | | | | | B | | - Capitalisation and Indebtedness | | | | n/a | | | | | | | | | | | | | | C | | - Reasons for the Offer and Use of Proceeds | | | | n/a | | | | | | | | | | | | | | D | | - Risk Factors | | | | 233 | | | | | | | | | | | | | | | | | | | | |
Item 4. Information on the Company
| | | | | | | | | | | | | A | | - History and Development of the Company | | 2, 3, 35, 37, 245 | | | | | | | | | | | | | | | | B | | - Business Overview | | | | 32, 38, 244 | | | | | | | | | | | | | | C | | - Organisational Structure | | | | 245 | | | | | | | | | | | | | | D | | - Property, Plants and Equipment | | | | 230 | | | | | | | | | | |
Item 4A. Unresolved Staff Comments None
| | | | | | | | | |
Item 5. Operating and Financial Review and Prospects
| | | | | | | | | | | | | A | | - Operating Results | | | | 10, 30, 225 | | | | | | | | | | | | | | B | | - Liquidity and Capital Resources | | 33, 34, 37, 177, 229 | | | | | | | | | | | | | | | | C | | - Research and Development, Patents and Licences, etc. | | | | 245 | | | | | | | | | | | | | | D | | - Trend Information | | | | 10, 33 | | | | | | | | | | | | | | E | | - Off-Balance Sheet Arrangements | | | | 229 | | | | | | | | | | | | | | F | | - Tabular Disclosure of Contractual Obligations | | | | 229 | | | | | | | | | | | | | | G | | - Safe Harbor | | | | 103 | | | | | | | | | | |
Item 6. Directors, Senior Management and Employees
| | | | | | | | | | | | | A | | - Directors and Senior Management | | | | 56 | | | | | | | | | | | | | | B | | - Compensation | | | | 74 | | | | | | | | | | | | | | C | | - Board Practices | | | | 60 | | | | | | | | | | | | | | D | | - Employees | | | | 245 | | | | | | | | | | | | | | E | | - Share Ownership | | 99, 248, 249, 251 | | | | | | | | | | | | |
Item 7. Major Shareholders and Related Party Transactions
| | | | | | | | | | | | | A | | - Major Shareholders | | | | 72, 248 | | | | | | | | | | | | | | B | | - Related Party Transactions | | | | 206 | | | | | | | | | | | | | | C | | - Interests of Experts and Counsel | | | | n/a | | | | | | | | | | |
Item 8. Financial Information
| | | | | | | | | | | | | A | | - Consolidated Statements and Other Financial Information | | | | 128–215 | | | | | | | | | | | | | | | | - Legal Proceedings | | | | 245 | | | | | | | | | | | | | | | | - Dividends | | | | 250 | | | | | | | | | | | | | | B | | - Significant Changes | | | | 245 | | | | | | | | | | |
Item 9. The Offer and Listing
| | | | | | | | | | | | | A | | - Offer and Listing Details | | | | 248 | | | | | | | | | | | | | | B | | - Plan of Distribution | | | | n/a | | | | | | | | | | | | | | C | | - Markets | | | | 248 | | | | | | | | | | | | | | D | | - Selling Shareholders | | | | n/a | | | | | | | | | | | | | | E | | - Dilution | | | | n/a | | | | | | | | | | | | | | F | | - Expenses of the Issue | | | | n/a |
| Page | ||||||||
Item 10. Additional Information
| | | | | | | | | | | | | A | | - Share Capital | | | | n/a | | | | | | | | | | | | | | B | | - Memorandum and Articles of Association | | | | 255 | | | | | | | | | | | | | | C | | - Material Contracts | | | | None | | | | | | | | | | | | | | D | | - Exchange Controls | | | | 257 | | | | | | | | | | | | | | E | | - Taxation | | | | 253 | | | | | | | | | | | | | | F | | - Dividends and Paying Agents | | | | n/a | | | | | | | | | | | | | | G | | - Statements by Experts | | | | n/a | | | | | | | | | | | | | | H | | - Documents on Display | | | | 257 | | | | | | | | | | | | | | I | | - Subsidiary Information | | | | 260 | | | | | | | | | | |
Item 11. Quantitative and Qualitative Disclosures about Market Risk 229
| | | | | | | | | |
Item 12. Description of Securities Other than Equity Securities
| | | | | | | | | | | | | A | | - Debt Securities | | | | n/a | | | | | | | | | | | | | | B | | - Warrants and Rights | | | | n/a | | | | | | | | | | | | | | C | | - Other Securities | | | | n/a | | | | | | | | | | | | | | D | | - American Depositary Shares | | | | 252 | | | | | | | | | | | | | | | | | | | | | | PART II | | | | | | | | | | | | | | | | | | |
Item 13. Defaults, Dividend Arrearages and Delinquencies None
| | | | | | | | | |
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds None
| | | | | | | | | |
Item 15. Controls and Procedures 127, 242
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Item 16A. Audit Committee Financial Expert 57, 58, 59
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Item 16B. Code of Ethics 72
| | | | | | | | | |
Item 16C. Principal Accountant Fees and Services 64, 73, 153, 257
| | | | | | | | | | | Item 16D. | | Exemptions from the Listing Standards for Audit Committees | | | | | | n/a | | | | | | | | | | | | Item 16E. | | Purchases of Equity Securities by the Issuer and Affiliated Purchasers | | | | | | 249 | | | | | | | | | | | | Item 16F. | | Change in Registrant’s Certifying Accountant | | | | | | 243 | | | | | | | | | | | | Item 16G. | | Corporate Governance | | | | | | 242 | | | | | | | | | | | | Item 16H. | | Mine Safety Disclosures | | | | | | 230 | | | | | | | | | | | | | | | | | | | | | | PART III | | | | | | | | | | | | | | | | | | |
Item 17. Financial Statements n/a
| | | | | | | | | |
Item 18. Financial Statements 128–215
| | | | | | | | | |
Item 19. Exhibits 266
| | | | | | | | | |
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| 268 | CRH ANNUAL REPORT AND FORM 20-F I 2019 |
Our Products and Services Locations
| Cement | Aggregates | Lime | Readymixed | Asphalt | Paving & | |||||||
| Concrete | Construction | |||||||||||
| Australia | ||||||||||||
| Austria | ||||||||||||
| Belgium |  | |||||||||||
| Brazil | | |||||||||||
| Canada | |  | | | | |||||||
| China1 | | |||||||||||
| Czech Republic | | | | |||||||||
| Denmark | | |||||||||||
| Estonia | | | ||||||||||
| Finland | | | | |||||||||
| France | | | | |||||||||
| Germany | | | | | ||||||||
| Hungary | | | | |||||||||
| Ireland | | | | | | | ||||||
| Italy | ||||||||||||
| Malaysia | ||||||||||||
| Netherlands | | | | | ||||||||
| Norway | ||||||||||||
| Philippines | | |||||||||||
| Poland | | | | | | | ||||||
| Romania | | | | |||||||||
| Russia | | |||||||||||
| Serbia | | | ||||||||||
| Slovakia | | | | |||||||||
| Spain | | | | | ||||||||
| Sweden | ||||||||||||
| Switzerland | | | | | ||||||||
| Ukraine | | | | |||||||||
| United Kingdom | | | | | | | ||||||
| United States | | | | | |
- Includes the Group’s equity accounted investments.
Table of Contents
| CRH ANNUAL REPORT AND FORM 20-F I 2019 | 269 |
| Infrastructural | Architectural | Glass & Glazing | Custom Glazing | Construction | Network Access | |||||
| Concrete | Products | Systems | Hardware | Accessories | Products | |||||
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| 270 | CRH ANNUAL REPORT AND FORM 20-F I 2019 |
Index
| A | ||||
| Accounting Policies | 133 | |||
| Acquisitions Committee | 72 | |||
| American Depositary Shares | 252 | |||
| Americas Materials | 40 | |||
| Annual General Meeting | 105 | |||
| Audit Committee | 64 | |||
| Auditors (Directors’ Report) | 104 | |||
| Auditor’s Remuneration | 64, 153, 220 | |||
| Auditor’s Report, Independent (US) | 125 | |||
| B | ||||
| Balance Sheet | ||||
| - Consolidated | 130 | |||
| Balanced Portfolio | 12 | |||
| Board Approval of Financial Statements (note 36) | 206 | |||
| Board Committees | 72 | |||
| Board Effectiveness | 70 | |||
| Board of Directors | 56 | |||
| Board Responsibilities | 71 | |||
| Building Products | 48 | |||
| Business and Non-Current Asset Disposals (note 6) | 154 | |||
| Business Combinations (note 32) | 141, 201 | |||
| Business Model | 16 | |||
| Business Overview | 32 | |||
| Business Performance | 30 | |||
| C | ||||
| Capital and Financial Risk Management (note 24) | 182 | |||
| Cash and Cash Equivalents (note 25) | 142, 186 | |||
| Cash Flow, Operating | 19 | |||
| Cash Flow Statement, Consolidated | 132 |
| Chairman’s Introduction | 4 | |||
| Chief Executive’s Review | 10 | |||
| Communications with Shareholders | 73 | |||
| Company Secretary | 73 | |||
| Compliance and Ethics | 72 | |||
| Contractual Obligations | 229 | |||
| Corporate Governance Practices | 242 | |||
| Corporate Governance Report | 60 | |||
| Cost Analysis (note 4) | 152 | |||
| CREST | 249 | |||
| D | ||||
| Debt, Analysis of Net (note 23) | 177 | |||
| Deferred Income Tax | ||||
| - expense (note 12) | 137, 160 | |||
| - assets and liabilities (note 29) | 137, 191 | |||
| Depreciation | ||||
| - cost analysis (note 4) | 152 | |||
| - property, plant and equipment (note 15) | 140, 164 | |||
| - segment analysis (note 2) | 147 | |||
| Derivative Financial Instruments (note 27) | 142, 188 | |||
| Directors’ Emoluments and Interests (note 8) | 155, 221 | |||
| Directors’ Interests in Share Capital | 99 | |||
| Directors’ Remuneration Report | 74 | |||
| Directors’ Report | 102 | |||
| Directors’ Responsibilities, Statement of | 105 | |||
| Directors’ Share Options | 92 | |||
| Discontinued Operations (note 3) | 150 | |||
| Dividend Payments (Shareholder Information) | 102, 250 | |||
| Dividend per Share | 1 | |||
| Dividends (note 13) | 143, 162 |
| E | ||||
| Earnings per Ordinary Share (note 14) | 163 | |||
| Employees, Average Number (note 7) | 155 | |||
| Employment Costs (note 7) | 155 | |||
| End-use Exposure | 12 | |||
| Equity Accounted Investments’ Profit, Share of (note 11) | 160 | |||
| Europe Materials | 44 | |||
| Events After the Balance Sheet Date (note 35) | 206 | |||
| Exchange Rates | 144 | |||
| Exhibits | 266 | |||
| F | ||||
| Finance Committee | 72 | |||
| Finance Costs and Finance Income (note 10) | 159 | |||
| Finance Director’s Review | 33 | |||
| Financial Assets (note 17) | 169 | |||
| Financial Calendar | 257 | |||
| Financial Statements, Consolidated | 128 | |||
| Foreign Currency Translation | 113, 241 | |||
| Frequently Asked Questions | 257 | |||
| G | ||||
| Global Business | 2 | |||
| Going Concern | 104 | |||
| Governance | 54 | |||
| Greenhouse Gas Emissions | 18 | |||
| Guarantees (note 26) | 187 | |||
| H | ||||
| Health and Safety | 18 |
Table of Contents
| CRH ANNUAL REPORT AND FORM 20-F I 2019 | 271 |
| I | ||||
| Inclusion and Diversity | 18, 61 | |||
| Income Statement, Consolidated | 128 | |||
| Income Tax Expense (note 12) | 160 | |||
| Intangible Assets (note 16) | 141, 166 | |||
| Inventories (note 18) | 142, 170 | |||
| Investor Relations Activities | 73 | |||
| K | ||||
| Key Components of 2019 Performance | 33 | |||
| KPIs, Financial | 19 | |||
| KPIs, Non-Financial | 18 | |||
| L | ||||
| Leases (note 22) | 133, 141, 175 | |||
| Listing Rule 9.8.4C | 103 | |||
| Loans and Borrowings, Interest-Bearing (note 26) | 142, 186 | |||
| M | ||||
| Measuring Performance | 18 | |||
| Memorandum and Articles of Association | 73, 255 | |||
| N | ||||
| Nomination & Corporate Governance Committee | 68 | |||
| Non-controlling Interests (note 33) | 205 | |||
| Non-GAAP Performance Measures | 225 | |||
| Notes on Consolidated Financial Statements | 145 | |||
| O | ||||
| Operating Costs (note 4) | 152 |
| P | ||||
| Pensions, Retirement Benefit Obligations (note 30) | 136, 192 | |||
| Principal Equity Accounted Investments | 264 | |||
| Principal Subsidiary Undertakings | 260 | |||
| Profit on Disposals (note 6) | 154 | |||
| Property, Plant and Equipment (note 15) | 140, 164 | |||
| Property, Plants and Equipment | 230 | |||
| Provisions for Liabilities (note 28) | 136, 190 | |||
| Proxy Voting, Electronic | 257 | |||
| R | ||||
| Registrars | 257 | |||
| Regulatory Information | 103 | |||
| Related Party Transactions (note 34) | 206 | |||
| Remuneration Committee | 88 | |||
| Reserves, Mineral | 231 | |||
| Retirement Benefit Obligations (note 30) | 136, 192 | |||
| Return on Net Assets (RONA) | 19, 226, 228 | |||
| Revenue (note 1) | 145 | |||
| Risk Governance | 26 | |||
| Risk Management and Internal Control | 104, 242 | |||
| Risk Factors | 233 | |||
| S | ||||
| Safety, Environment & Social Responsibility Committee | 20, 60, 244 | |||
| Sector Exposure and End-Use | ||||
| - Americas Materials | 40 | |||
| - Europe Materials | 44 | |||
| - Building Products | 48 | |||
| Segment Information (note 2) | 139, 147 | |||
| Selected Financial Data | 224 | |||
| Senior Independent Director | 57 |
| Share-based Payments (note 9) | 140, 156 | |||
| Share Capital and Reserves (note 31) | 143, 198 | |||
| Share Options | ||||
| - Directors | 92 | |||
| - Employees (note 9) | 156 | |||
| Share Price Data | 248 | |||
| Shareholder Communication | 73 | |||
| Shareholdings as at 31 December 2019 | 72, 248 | |||
| Statement of Changes in Equity, Consolidated | 131 | |||
| Statement of Comprehensive Income, Consolidated | 129 | |||
| Statement of Directors’ Responsibilities | 105 | |||
| Stock Exchange Listings | 72, 248 | |||
| Strategy | 14 | |||
| Substantial Holdings | 72 | |||
| Supplemental Guarantor Information (note 37) | 207 | |||
| Sustainability | 20 | |||
| T | ||||
| Total Shareholder Return (TSR) | 8, 19 | |||
| Trade and Other Payables (note 20) | 173 | |||
| Trade and Other Receivables (note 19) | 170 | |||
| V | ||||
| Volumes, Annualised | ||||
| - Americas Materials | 41 | |||
| - Europe Materials | 45 | |||
| W | ||||
| Website | 73, 257 | |||
| Working Capital and Provisions for Liabilities, Movement in (note 21) | 174 |
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Table of Contents
| 272 | CRH ANNUAL REPORT AND FORM 20-F I 2019 |
Signatures
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this Annual Report on its behalf.
| CRH public limited company | ||
| (Registrant) | ||
| /s/ S. Murphy | ||
| By: | ||
| Senan Murphy | ||
| Group Finance Director |
Dated: 6 March 2020
Table of Contents
Table of Contents
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| CRH plc Stonemason’s Way Rathfarnham Dublin 16 D16 KH51 Ireland Telephone: +353 1 404 1000 E-mail: mail@crh.com Website: www.crh.com Registered Office 42 Fitzwilliam Square Dublin 2 D02 R279 Ireland Telephone: +353 1 634 4340 E-mail: crh42@crh.com | Cover image: Oldcastle Infrastructure, part of CRH’s Building Products Division, designed bespoke floating concrete slabs for a Los Angeles Metro Rail project in California. The slabs reduce vibration and noise from trains passing under the Walt Disney Concert Hall. When complete, over 500 slabs will support a section of track around three-quarters of a mile long. | |||
| CRH® is a registered trade mark of CRH plc. |