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Earnings per share declined by 7% to 76.5c (2011: 82.6c), reflecting the lower pre-tax profit for the year. Excluding non-cash depreciation, amortisation and impairment charges, cash earnings per share increased by 7% to 206.8c (2011: 194.0c). 

## Financial Performance Indicators 

Some key financial performance indicators which, taken together, are a measure of performance and financial strength are set out below in table 2. 

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The Group EBITDA margin declined by 0.4 percentage points as the significant increase in input costs was not fully recovered in selling prices; operating profit margin similarly declined to 4.5%. Management believes that the EBITDA/net interest cover ratio is useful to investors because it matches the earnings and cash generated by the business to the underlying funding costs. With a higher level of net interest in 2012, the multiple of EBITDA to debt-related interest reduced to 6.4 times (2011: 7.2 times), well in excess of our covenant level of 4.5 times and in keeping with our commitment to maintaining an investment grade rating. 

The effective tax rate of 17.8% of pre-tax profit was higher than 2011 (16%), reflecting the mix of Group profits by geographical region. 

The share price at 31 December 2012 was €15.30, little changed from the 2011 closing price (€15.36); however, with the 2012 dividend at 62.5c, the net return for shareholders for the year was a positive 4%. This follows returns of +3% in 2011, -16% in 2010 and +22% in 2009. At year-end 2012, CRH’s market capitalisation was €11.1 billion (2011: €11 billion), ranking the Group at number four in its building materials peer group. 

Total shareholders’ equity remained unchanged at €10.6 billion, with the net comprehensive income for the year of €0.4 billion offset by dividends of €0.4 billion. Year-end net debt of just under €3 billion was €0.5 billion lower than year-end 2011, and accordingly the percentage of net debt to total equity reduced to 28% (2011: 33%). With year-end market capitalisation broadly in line with year-end 2011, the debt/market capitalisation percentage was also lower at 27% (2011: 32%). 

## Liquidity and Capital Resources 

Table 3 summarises the main cash flows for 2012 and 2011. 

Cash flows from operations Total operating cash inflows amounted to €1,469 million in 2012, a reduction of €27 million compared with 2011, largely as a result of the 5% reduction in profit before tax. 

Operating cash outflows decreased to €1,424 million (2011: €1,470 million) mainly due to a lower net working capital outflow. Working capital levels are driven by trends in overall sales and also by seasonal weather patterns. CRH believes that its working capital is sufficient for the Group’s present requirements. 

Payments during 2012 to address deficits in the Group’s defined benefit pension schemes were €50 million higher than 2011. Stable capital 

