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Presentation of the Group - Lafarge

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Towards Excellence<br />

Courtesy <strong>of</strong> Patrick Rimoux (architecte)


2<br />

Content<br />

� Materials for life<br />

� <strong>Lafarge</strong>: World leader in building materials<br />

� A unique business portfolio<br />

� World Leader in Cement<br />

� Aggregates & Concrete: No. 1 & No. 3 Worldwide<br />

� Gypsum: No. 3 Worldwide<br />

� A strong growth dynamic<br />

� Innovation at <strong>Lafarge</strong>: A step ahead in our sector<br />

� A long term commitment to Sustainability<br />

� A close partnership with architects<br />

� <strong>Lafarge</strong>’s excellence


3<br />

Materials for Life<br />

� To design and manufacture building materials is<br />

to contribute to legitimate expectations <strong>of</strong> people everywhere:<br />

� Housing<br />

� Mobility<br />

� Health<br />

� Education<br />

� Essential infrastructures to economic growth<br />

and social progress<br />

� Cement is a hydraulic binder (a sort <strong>of</strong> glue)<br />

� Concrete is <strong>the</strong> second most widely used product in <strong>the</strong> world<br />

after water<br />

� 2.5 billion tons <strong>of</strong> cement yearly produce 6 billion m 3 <strong>of</strong> concrete,<br />

which means that each <strong>of</strong> us uses more than 1 m 3 <strong>of</strong> concrete<br />

per year!


<strong>Lafarge</strong><br />

World Leader<br />

in Building Materials<br />

DR Médiathèque <strong>Lafarge</strong>


5<br />

World leader in building materials<br />

� Leadership positions in all our Businesses<br />

� World leader in Cement<br />

� No. 1 in Aggregates & No. 3 in Concrete<br />

� No. 3 worldwide in Gypsum<br />

� Operates in 76 countries<br />

� Employs 90,000 people<br />

� 2,000 industrial sites worldwide<br />

� 17.6 billion euros in Sales<br />

1.9 billion euros in Net Income <strong>Group</strong> share (2007)<br />

� Listed on Euronext Paris stock exchange


6<br />

A well balanced geographical portfolio,<br />

a worldwide presence in 76 countries on every continent


7<br />

A balanced worldwide presence<br />

37,4%<br />

0,1%<br />

8,8%<br />

Sales by<br />

business line<br />

Cement<br />

Aggregates & Concrete<br />

Gypsum<br />

O<strong>the</strong>rs<br />

53,7%<br />

5,0%<br />

4,2%<br />

9,7%<br />

8,3%<br />

10,0%<br />

Sales by<br />

geographic area<br />

27,1%<br />

35,7%<br />

Western Europe<br />

North America<br />

Central and Eastern Europe<br />

Mediterranean Basin and Middle East<br />

Latin America<br />

Sub-Saharan Africa<br />

Asia


8<br />

Cultural diversity<br />

9,3%<br />

25,3%<br />

6,3%<br />

5,0%<br />

10,7%<br />

Split <strong>of</strong><br />

employees<br />

by region<br />

%<br />

11,0%<br />

12,6%<br />

19,8%<br />

� Making diversity an asset…<br />

France<br />

� For a common performance culture<br />

� For sharing knowledge and know-how<br />

� For targeting excellence everywhere<br />

� For applying our values<br />

O<strong>the</strong>r Western Europe<br />

North America<br />

Central and Eastern Europe<br />

Mediterranean Basin and Middle East<br />

Latin America<br />

Sub-Saharan Africa<br />

Asia


9<br />

Acquisition <strong>of</strong> Orascom Cement:<br />

A Decisive Acceleration <strong>of</strong> our Pr<strong>of</strong>itable Growth Strategy<br />

� January 23, 2008 : Acquisition <strong>of</strong> Orascom Cement completed,<br />

<strong>the</strong> leader in Middle East and Mediterranean Basin regions<br />

� No. 1 in <strong>the</strong> key markets <strong>of</strong> Egypt, Algeria,<br />

United Arab Emirates and Iraq<br />

� With strategic positions in Saudi Arabia, Syria, Turkey,<br />

Pakistan, North Korea and Nigeria<br />

� 9 cement production sites with new or recent plants<br />

with 35 MT <strong>of</strong> capacity<br />

� 3 production sites under construction, to bring total capacity to<br />

45 MT by 2010<br />

� A powerful business model<br />

� Recent quality assets,<br />

developed to ease future capacity increases<br />

� High quality teams<br />

� Low production costs


A Unique Business Portfolio<br />

Courtesy <strong>of</strong> <strong>Lafarge</strong> Malayan Cement Communications Dept


World Leader<br />

in Cement<br />

© Patrick Endres - Jim L<strong>of</strong>tus, PE, PDC Inc. (Engineering firm)


12<br />

World leader in Cement<br />

� Cement is a universal material.<br />

It is an hydraulic binder, a kind <strong>of</strong> glue,<br />

necessary to produce concrete<br />

� 163 production sites in 50 countries<br />

� A variety <strong>of</strong> products adapted to our customers’ needs<br />

� A fast-growing demand in developing countries to meet<br />

<strong>the</strong> huge needs for habitat, roads and infrastructures<br />

� An excellent geographic portfolio and strong local positions<br />

� 53 % <strong>of</strong> operating income coming from emerging markets in 2007<br />

� A major acquisition in 2008 <strong>of</strong> <strong>the</strong> leader in <strong>the</strong> Middle East and<br />

Mediterranean Basin regions<br />

� Potential to expand fur<strong>the</strong>r in China, India, Middle East, Russia<br />

and many o<strong>the</strong>r countries<br />

DR Media<strong>the</strong>que <strong>Lafarge</strong>


13<br />

World leader in Cement<br />

� 4 international technical centers: one serving Western<br />

Europe and Africa area, one in Central and Eastern Europe,<br />

one in Asia and one in America<br />

� Multicultural teams<br />

� High quality and high performance products adapted to<br />

markets’ specificities<br />

� Sensium® in France,<br />

� Avancrete in Malaysia,<br />

� Concreto in India…


14<br />

North America<br />

4 MT<br />

A program to build 45 MT <strong>of</strong> new capacities<br />

between 2006 and 2010<br />

Latin America<br />

2 MT<br />

Med.Basin<br />

4 MT<br />

Europe<br />

6 MT<br />

Africa<br />

3 MT<br />

India +<br />

Bangladesh<br />

9 MT<br />

More than 80% in emerging markets<br />

China<br />

15 MT<br />

South East Asia<br />

2 MT


15<br />

The leader in fast-growing emerging markets<br />

� Orascom Cement<br />

� Acquisition <strong>of</strong> <strong>the</strong> cement leader in <strong>the</strong> Middle East region<br />

� A major breakthrough in our strategy <strong>of</strong> development in<br />

emerging markets<br />

� 260 million tons <strong>of</strong> cement capacity in 2010<br />

� Which means a 50% capacity increase compared to 2007<br />

with brand new highly energy efficient assets, respecting our<br />

environmental standards.


Aggregates & Concrete<br />

No. 1 & No. 3 Worldwide<br />

© Claudio Lara Da Costa<br />

Carlos Porto, Geraldo Lopes, Gilson Santos & José Raymundo


17<br />

Innovation and performance<br />

Our successful added-value products<br />

� Concrete is also called ‘liquid stone’.<br />

It is <strong>the</strong> second most widely used product<br />

in <strong>the</strong> world after water. It is made <strong>of</strong><br />

cement, aggregates, water and admixtures.<br />

Concrete has numerous characteristics for different uses<br />

and needs: mechanical properties, resistance to fire,<br />

<strong>the</strong>rmal and acoustic comfort, durability, availability, ease <strong>of</strong><br />

use, versatility…<br />

� World leader in Aggregates and N°3 in Concrete<br />

� 588 quarries and 1,144 concrete plants<br />

in 29 countries<br />

� New products and unique services to improve construction<br />

methods<br />

� Aggregates, ready-mix concretes, value-added products,<br />

asphalt and paving for engineering structures, roads and<br />

buildings<br />

© Jack Clark / KJC Photography


18<br />

Innovation and performance<br />

Our succeeding added-value products<br />

� Strong positions in Aggregates in France, UK, Canada, US<br />

� Strong acceleration <strong>of</strong> our development in emerging markets<br />

� Solid positions built in South Africa, Poland, Ukraine<br />

� Operating income coming from emerging markets up 45% in<br />

2007<br />

� Worldwide success for value-added products<br />

contributing to more than 20% <strong>of</strong> ready-mix volumes<br />

� Ductal®, Agilia®, Artevia: already worldwide successes<br />

� Acceleration <strong>of</strong> product innovation with 2 new revolutionary<br />

concretes: Extensia, Chronolia launched in 2007 in<br />

France, <strong>the</strong> UK and North America, and in Chile, South Africa<br />

and Spain in 2008


19<br />

A well-proven and differentiated business model<br />

� Unique competitive advantages<br />

� Long term know-how<br />

� Constantly improving environmentally-friendly practices<br />

� A step ahead in Research and Innovation<br />

� A strategy to accelerate development<br />

� Grow in both developed and emerging markets<br />

� Through acquisitions and greenfields to consolidate our<br />

positions and enter new markets<br />

� Through accelerated innovation and fast implementation <strong>of</strong><br />

value-added products in our markets


Gypsum<br />

No. 3 Worldwide<br />

© Cedric Arnold - Rea - Archiplan Co., Ltd. (Architect)


21<br />

Innovative solutions for interiors<br />

� Plasterboard is a polyvalent and infinitely<br />

recyclable material. It enables buildings to<br />

progress in terms <strong>of</strong> comfort and aes<strong>the</strong>tics.<br />

Its <strong>the</strong>rmal efficiency capacity and hydrometric<br />

characteristics are unique for building<br />

� No. 3 worldwide in Gypsum<br />

� 77 industrial sites in 28 countries<br />

� Differentiated products<br />

� Plasterboard systems, gypsum blocks and plaster<br />

for construction and decoration finishing works,<br />

new construction and renovation<br />

� Strong and competitive positions in our markets<br />

� The market leader in Asia<br />

� Fast internal development to bolster our positions, support<br />

market growth and move into new markets<br />

� Track record in successful innovations<br />

� Deco, Synia, Platec<br />

DR Media<strong>the</strong>que <strong>Lafarge</strong>


22<br />

A Significant Development Program<br />

� Building new capacities to keep pace with market growth<br />

and enter new markets<br />

� A program to increase capacity by 30% between 2006 and<br />

2010<br />

� US, Vietnam, Mexico, Romania, South Africa, UK, Ukraine,<br />

South Korea, India, China, Spain, Turkey, Colombia<br />

� A strategy to accelerate product innovation<br />

� Through accelerated innovation pace and <strong>the</strong> fast spread <strong>of</strong><br />

value-added products in our markets to reach 20% <strong>of</strong> sales<br />

coming from innovative solutions<br />

� With better quality and more value-added services


23<br />

A Strong Growth<br />

Dynamic<br />

DR Médiathèque <strong>Lafarge</strong>


24<br />

A major transformation over <strong>the</strong> past 10 years<br />

� Entry into more than 35 new countries over <strong>the</strong> last 10 years<br />

� Rapid development in emerging markets,<br />

(Asia, Africa, Eastern Europe)<br />

� 52 new cement plants, 25 new plasterboard plants<br />

� Choosing a combined development strategy in Cement,<br />

Aggregates and Concrete for nearly 15 years<br />

� Turnover doubled<br />

� Number <strong>of</strong> employees tripled<br />

� A Research and Innovation orientation


25<br />

Safety<br />

The No. 1 Priority to achieve excellence<br />

� The best organizations in terms <strong>of</strong> Health & Safety<br />

= <strong>the</strong> best performers in <strong>the</strong>ir sector<br />

� Operational discipline<br />

� Motivated work force<br />

� Excellent overall communication<br />

� Strong corporate image<br />

� Full integration <strong>of</strong> safety in business processes<br />

� Accountability for safety performance<br />

� Visible leadership<br />

� Safety is at <strong>the</strong> heart <strong>of</strong> our values and our performance<br />

culture<br />

� Safety is <strong>Lafarge</strong>’s number 1 priority<br />

© Phototèque <strong>Lafarge</strong> / Alam Beg Imtiaz / Interspeed


27<br />

Our Efforts Deliver Results<br />

9<br />

8<br />

7<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

8.35<br />

Lost Time Injury Frequency Rate (LTIFR)*<br />

6.56<br />

4.68<br />

3.22<br />

2.51<br />

2002 2003 2004 2005 2006 2007 T-2008 2009<br />

1.8<br />

1.55<br />

* Number <strong>of</strong> accidents with an injury leading to loss <strong>of</strong> time by million <strong>of</strong> hours worked.


28<br />

Our strategy to be <strong>the</strong> best in our sector for <strong>the</strong><br />

long term<br />

� Pursue a growth strategy focused primarily on development in<br />

Cement in emerging markets and on innovation in Concrete<br />

� 53 % <strong>of</strong> our Cement sales and operating income came from<br />

emerging markets in 2007<br />

� Unlock <strong>the</strong> <strong>Group</strong>’s potential by streamlining our organization<br />

and controlling costs<br />

� Cost reduction program 70% completed, i.e. €240 million at <strong>the</strong><br />

end <strong>of</strong> 2007<br />

� Cost reduction target expected to reach 400 million euros by <strong>the</strong><br />

end <strong>of</strong> 2008 instead <strong>of</strong> 340 million euros


29<br />

Our strategy to be <strong>the</strong> best in our sector for <strong>the</strong><br />

long term<br />

� Deliver results: 2008 objectives exceeded in 2007, a year<br />

early<br />

� Safety: frequency rate divided by 2 in 2 years<br />

� Net income <strong>Group</strong> share up 39% in 2007<br />

� Net income per share up 32% in 2007<br />

� Improvement in Return on capital employed to 11% from<br />

9.4% in 2006


30<br />

Our strategy to be <strong>the</strong> best in our sector for <strong>the</strong> long<br />

term<br />

� With <strong>the</strong> acquisition <strong>of</strong> Orascom Cement, <strong>Lafarge</strong> becomes <strong>the</strong><br />

cement leader <strong>of</strong> fast-growing emerging markets<br />

� 65% <strong>of</strong> <strong>the</strong> <strong>Group</strong>’s results will come from emerging markets in 2010<br />

� Platform for our development in Aggregates & Concrete<br />

� High 2010 targets to be <strong>the</strong> most efficient player in <strong>the</strong> industry<br />

� Net income per share > 15 euros in 2010<br />

� Return on capital employed over 12% in 2010<br />

� Free cash flow over 3,5 billion euros in 2010<br />

� Acceleration <strong>of</strong> our innovation pace and strong lead in sustainable<br />

construction<br />

� Reinforcing <strong>the</strong> commitment to our values following our progress<br />

orientation<br />

� Our values are an integral part <strong>of</strong> our result-oriented culture<br />

� Commitment to being ranked among <strong>the</strong> world’s best industrial<br />

groups in health and safety, protection <strong>of</strong> <strong>the</strong> environment, social<br />

responsibility and corporate governance


Innovation at <strong>Lafarge</strong>:<br />

A step ahead in our sector<br />

© Hamilton De Oliveira - Rea


32<br />

Research is a competitive advantage<br />

� Long term presence in Cement, Aggregates and Concrete<br />

explains our unique multi-disciplinary expertise<br />

� More than ten years <strong>of</strong> development <strong>of</strong> our scientific<br />

approach<br />

� From empirical expertise<br />

to scientific understanding <strong>of</strong> mechanisms<br />

� The largest research center in our sector<br />

� Success <strong>of</strong> our value-added products


33<br />

Customer oriented R&D<br />

� <strong>Lafarge</strong>’s research & development is driven not only by<br />

our customers’ needs… but also by <strong>the</strong>ir dreams<br />

� Our customers’ needs:<br />

major challenges for <strong>the</strong> future <strong>of</strong> building materials<br />

� In buildings and civil works, architects wish for ever<br />

greater mechanical, functional and aes<strong>the</strong>tic performances<br />

� Our society adds sustainability, through cost-effectiveness<br />

and respect for people and <strong>the</strong>ir environment<br />

� Our research & development is solution driven:<br />

it is <strong>the</strong> heart behind <strong>the</strong> <strong>Group</strong>’s growth to develop<br />

innovative products with added value and new solutions<br />

for <strong>the</strong> entire building industry


34<br />

The largest research laboratory for building<br />

materials in <strong>the</strong> world<br />

� An international R&D team and a Central Research<br />

Laboratory (LCR) in France<br />

� Over 500 people worldwide (over 200 at LCR)<br />

dedicated to research<br />

� A decentralized network <strong>of</strong> Divisional Technical Centers<br />

in 5 continents aiming at developing new products<br />

� A global budget <strong>of</strong> € 170 million, up 30% in 2 years<br />

� Key innovations within all our businesses:<br />

a portfolio <strong>of</strong> several hundred patents<br />

� Worldwide academic network and research partnerships<br />

� A close partnership with architects and clients


35<br />

Research collaborations with <strong>the</strong> best universities<br />

� USA: Massachusetts Institute <strong>of</strong> Technology (MIT),<br />

Berkeley, Princeton<br />

� France: framework agreement with <strong>the</strong> Centre National<br />

de Recherche Scientifique (CNRS)<br />

� Switzerland: Ecole Polytechnique Federal de Lausanne<br />

� <strong>Lafarge</strong> is part <strong>of</strong> <strong>the</strong> European research network NANOCEM<br />

which combines <strong>the</strong> forces <strong>of</strong> 12 European cement<br />

manufacturers and 21 academic institutions to share<br />

knowledge and accelerate research<br />

� In 2007, <strong>Lafarge</strong> has reinforced its partnership with <strong>the</strong> two<br />

leading engineering schools, Ecole des ponts and Ecole<br />

Polytechnique, to set up a new international education and<br />

research chair in <strong>the</strong> Science <strong>of</strong> Materials for Sustainable<br />

Construction, integrating international academic partnerships


36<br />

Innovative Research & Development<br />

� With a strong understanding <strong>of</strong> our customers’ needs,<br />

we develop innovative solutions to meet <strong>the</strong>ir expectations:<br />

� Collaborate with architects to make advances<br />

in construction methods<br />

(aes<strong>the</strong>tics, height, new design, energy efficiency)<br />

� Respond to and anticipate client needs to produce quality,<br />

effortless, noiseless and less expensive solutions and improve<br />

conditions on work sites<br />

� Design products with added value and solutions<br />

� Lead <strong>the</strong> way in sustainable construction


37<br />

Already several technological breakthrough<br />

transformed into worldwide successes<br />

� 1980: contribution to <strong>the</strong> development <strong>of</strong> high strength<br />

concretes<br />

� 2000: Ductal ® , ultra-high performance concrete<br />

� 2000: Agilia ® , a range <strong>of</strong> self-placing concretes<br />

� 2002: PLAtec ® , tailored solutions in plasterboard<br />

� 2004: Synia TM , aes<strong>the</strong>tic, simple and competitive solution<br />

� 2006: Sensium, 100% dust free technological cements<br />

� 2007: Extensia TM , <strong>the</strong> concrete to pour very large surfaces<br />

with no joints, and Chronolia, <strong>the</strong> rapid setting concrete<br />

that allows <strong>the</strong> removal <strong>of</strong> formwork in four hours


38<br />

Ductal®, an ultra high performance concrete<br />

� Ductal® a new material with a unique combination<br />

<strong>of</strong> superior characteristics<br />

� Compressive strength: 6 to 8 times greater than conventional concrete<br />

� Flexural strength: 10 times greater than conventional concrete<br />

� Ductility: ability to deform under excessive loads without breaking<br />

� Superior surface aspects<br />

� Durability: 100 times greater than standard references<br />

� Ductal® is a structural and architectural material designed<br />

to be used without re-bars<br />

� very relevant for earthquake resistant structures<br />

� lighter structures, with reduced volumes and weight<br />

� major civil engineering projects and buildings<br />

A step ahead


39<br />

Ductal®, an ultra high performance concrete with a<br />

lower impact on <strong>the</strong> environment<br />

Comparison <strong>of</strong> raw materials use, energy<br />

consumption and CO 2 emissions between a bridge<br />

built out <strong>of</strong> Ductal ® and a composite concrete/steel<br />

Base 100<br />

composite<br />

steel/concrete<br />

solution<br />

65<br />

Quantity <strong>of</strong><br />

raw<br />

materials<br />

54<br />

Primary<br />

Energy<br />

� Ductal ® solution<br />

47<br />

CO2<br />

Emissions


40<br />

Agilia ® , <strong>the</strong> first self-placing<br />

and self-leveling concrete<br />

� Agilia ® , <strong>the</strong> first self-placing, self-leveling concrete in <strong>the</strong><br />

world<br />

� Easy to use, aes<strong>the</strong>tic and ergonomic, for high quality results<br />

� Great fluidity, enabling to effortlessly fill all <strong>the</strong> corners and<br />

areas in <strong>the</strong> formwork or mold, eliminating some <strong>of</strong> <strong>the</strong> more<br />

physical or noisy steps, such as vibration<br />

� Overall construction costs reduced through productivity gains<br />

� Illustrates our successful vertical integration strategy:<br />

� Cement / Aggregates / Concrete<br />

� Illustrates our cutting edge research<br />

� Generate value for customers<br />

� Sales and pr<strong>of</strong>its expected to double by 2008


41<br />

Chronolia TM , <strong>the</strong> construction site booster<br />

� Chronolia TM combines two apparently contradictory features<br />

requested by customers:<br />

� a concrete product that can be transported and handled<br />

like conventional fluid concrete<br />

� a concrete which, once laid, very rapidly develops<br />

high mechanical strength<br />

� Improves construction site working conditions by increasing<br />

efficiency and productivity<br />

� Becomes resistant in record time and formwork can be removed<br />

just 4 hours after manufacture, whereas between 12 and 20 hours<br />

are needed with conventional concrete<br />

� Can be used on all construction sites, as well as to repair<br />

road surfaces and civil engineering structures, with <strong>the</strong> same<br />

workability as a conventional ready-mix concrete<br />

� Makes it possible to rethink <strong>the</strong> organization <strong>of</strong> a building site in<br />

terms <strong>of</strong> deadlines, cycle times, <strong>the</strong> use <strong>of</strong> equipment and costs<br />

� Launched in France, <strong>the</strong> United Kingdom and North America in<br />

2007, and in Spain, South Africa and Chile in 2008


42<br />

Extensia TM , <strong>the</strong> new dimension <strong>of</strong> concrete<br />

� Extensia TM enables <strong>the</strong> construction <strong>of</strong> surface areas <strong>of</strong> up to 400m²<br />

� without joints thus limiting <strong>the</strong> problem <strong>of</strong> cracks<br />

and <strong>the</strong>ir consequent maintenance costs<br />

� whereas conventional concrete allows for only<br />

a maximum possible joint-free surface area <strong>of</strong> 25m²<br />

� Improves construction site working conditions<br />

� Specially designed for concrete flooring applications,<br />

by nature subject to heavy traffic and storage loads<br />

� Offers increased resistance and better performance<br />

in terms <strong>of</strong> abrasion, flexion and traction<br />

� Allows a reduction in slab thickness<br />

� Makes it possible to reduce <strong>the</strong> CO 2 emissions associated<br />

with <strong>the</strong> production <strong>of</strong> concrete flooring thanks to a lower quantity<br />

<strong>of</strong> raw materials employed and no need for steel mesh or steel fibers<br />

� Launched in France, <strong>the</strong> United Kingdom and North America<br />

in 2007, and in Spain, South Africa and Chile in 2008


43<br />

Synia TM , <strong>the</strong> new generation plasterboard<br />

� A major revolution in <strong>the</strong> plasterboard industry:<br />

� Synia TM , <strong>the</strong> first plasterboard with four tapered edges<br />

� An exclusive and patented technology made possible<br />

after four years <strong>of</strong> development<br />

� Easy to install and gives a perfect finish: ideal for ceilings,<br />

high partition walls and for creating large, flat surfaces<br />

free from imperfections<br />

� Four tapered edges that considerably simplify <strong>the</strong> work<br />

<strong>of</strong> plasterboard installers and ensure a perfect finish.<br />

On site, <strong>the</strong> installation time is reduced because installers<br />

no longer need to finish <strong>of</strong>f <strong>the</strong> joins, reducing installation<br />

costs<br />

� Following its successful launch in France two years ago,<br />

Synia TM is now produced and adapted to specific local<br />

market conditions in Italy, Poland and Thailand.


44<br />

PLAtec TM , made-to-measure solutions for interior<br />

design<br />

� PLAtec TM, tailor-made plasterboard solutions for use<br />

in creative interior layouts<br />

� Made-to-measure plasterboard shapes. From <strong>the</strong> drawing board<br />

to final factory production and assembly, this allows for time<br />

saving, easier installation and quality finishing<br />

� Easy to use and inexpensively designed plasterboard that<br />

works!<br />

� PLAtecTM products are made-to-measure flush or <strong>of</strong>fset shapes<br />

with varied contours which can be easily assembled on <strong>the</strong> work<br />

site to build architectural works aimed at maximizing volumes<br />

and playing on space and light<br />

� PLAtecTM can be widely applied in finishing work, for example,<br />

to cover columns, structures and suspended ceiling friezes,<br />

and to create totally concealed access hatches


A long term commitment<br />

to Sustainability<br />

© Hamilton De Oliveira - Rea


46<br />

The leader’s commitment<br />

� Integrity, responsibility, ethics, respect as well as courage,<br />

empathy and openness are <strong>the</strong> values underpinning<br />

<strong>Lafarge</strong>’s philosophy.<br />

� It is at <strong>the</strong> core <strong>of</strong> our Principles <strong>of</strong> Action written in 1977<br />

� For many years, <strong>Lafarge</strong> has been pursuing a strategy<br />

that combines industrial know-how with:<br />

� Performance<br />

� Value creation<br />

� Respect for employees and local cultures<br />

� Environmental protection<br />

� The conservation <strong>of</strong> natural resources and energy<br />

A strong conviction:<br />

There cannot be a sustainable leader without respect<br />

for <strong>the</strong> environment and social responsibility


47<br />

Sustainability Ambitions 2012<br />

� In 2007, <strong>Lafarge</strong> renewed its commitment to sustainability<br />

with <strong>the</strong> launch <strong>of</strong> its Sustainability Ambitions 2012<br />

� This roadmap is <strong>the</strong> result <strong>of</strong> a review and in-depth dialogue<br />

with stakeholders and <strong>Lafarge</strong>’s management team, leading<br />

to <strong>the</strong> definition <strong>of</strong> <strong>the</strong> major issues for <strong>the</strong> <strong>Group</strong>:<br />

� The areas where it has a real impact<br />

� The areas where <strong>Lafarge</strong> can positively influence <strong>the</strong> industry<br />

� It fixes clear, measurable and ambitious objectives that <strong>the</strong><br />

<strong>Group</strong> is committed to achieving by 2012<br />

� 3 major priorities:<br />

� Fighting against climate change<br />

� Protecting biodiversity<br />

� Health & Safety


48<br />

Worldwide partnerships and global commitments<br />

� Global partnerships with civil society<br />

� United Nations Global Compact - signed in 2003<br />

� Global Business Coalition on HIV/AIDS membership<br />

since it was created in 2002<br />

� WBCSD*: <strong>Lafarge</strong> was <strong>the</strong> leader for <strong>the</strong> Cement Sustainability<br />

Initiative (CSI) launched in 2002, a worldwide action plan for<br />

sustainable development in <strong>the</strong> sector in collaboration with 14 o<strong>the</strong>r<br />

cement manufacturers, which is developing a joint sectorial approach<br />

to reduce CO2 emissions.<br />

� Co-leader <strong>of</strong> <strong>the</strong> “Energy Efficiency in Buildings” project, lead within<br />

<strong>the</strong> WBCSD. Working to identify solutions to enable <strong>the</strong> design <strong>of</strong><br />

buildings with zero net energy.<br />

� Global Corporate Citizenship member since 2001<br />

� Global partnerships with NGOs<br />

� WWF – to improve our environmental performance<br />

� Care - in <strong>the</strong> fight against HIV/Aids<br />

� Habitat for Humanity - to provide people in need with decent,<br />

affordable housing<br />

* World business council for<br />

sustainable development


49<br />

Respect for <strong>the</strong> environment<br />

� Pioneering partnership with <strong>the</strong> WWF since 2000<br />

to improve our environmental performance<br />

– “Two worlds, one planet” – contributing<br />

to raising standards across <strong>the</strong> industry<br />

� Preservation <strong>of</strong> natural resources and energy:<br />

increased use <strong>of</strong> alternative fuels.<br />

� 9.8% <strong>of</strong> energy used worldwide comes<br />

from alternative fuels (at end 2007)<br />

� Commitment to reduce CO2 emissions by 20% by 2010<br />

� Results: -16% at end 2007 (base 1990)<br />

� Rehabilitation <strong>of</strong> quarries<br />

� By <strong>the</strong> end <strong>of</strong> 2007, 75% <strong>of</strong> quarries with rehabilitation plans<br />

� <strong>Lafarge</strong> standards to be adopted worldwide<br />

� Investing to research in more environmentally-friendly products


50<br />

Improving our social responsibility<br />

� Our Principles <strong>of</strong> Action: a commitment to make our people<br />

successful and contribute to <strong>the</strong> development <strong>of</strong> <strong>the</strong>ir talents<br />

� Health and safety management system launched in 2003<br />

covering 90% <strong>of</strong> <strong>Lafarge</strong> employees<br />

� Focus on training:<br />

� Launch <strong>of</strong> <strong>Lafarge</strong> University – over 2000 <strong>Lafarge</strong> managers attended<br />

training in 2006<br />

� 90% <strong>of</strong> non-senior and senior managers and 65% non-management<br />

employees attended at least one day <strong>of</strong> training in 2006<br />

� Continuous dialogue with unions and employee representatives<br />

at all appropriate levels<br />

� 2005: Signing <strong>of</strong> a four-party agreement with 3 international<br />

trade union federations on social responsibility and international<br />

labor relations applying to all <strong>Lafarge</strong>’s employees around <strong>the</strong> world<br />

� 2006: Safety is <strong>the</strong> N°1 priority


51<br />

Contributing to building a better world<br />

for our neighboring communities<br />

� Contributing to local economic development<br />

� Making sustainable development part <strong>of</strong> our decision-making<br />

processes and purchasing practices<br />

� Managing political, economic and financial issues linked<br />

to our locations with integrity<br />

• To guide our investment decisions<br />

• Ensuring we respect Human Rights everywhere we operate<br />

� Providing solutions geared to local communities’ needs<br />

� A multi-local involvement: good relations with communities<br />

is part <strong>of</strong> each Business unit’s performance program<br />

� Actively contributing to economic and social development <strong>of</strong><br />

local communities everywhere we operate


52<br />

Leading <strong>the</strong> way in sustainable construction<br />

� Two key areas: research and partnership with <strong>the</strong> construction chain<br />

� One <strong>of</strong> <strong>the</strong> priorities <strong>of</strong> <strong>the</strong> <strong>Lafarge</strong>-WWF partnership:<br />

� Promote sustainable construction in <strong>the</strong> construction industry<br />

� Partnerships with architects to develop sustainable construction<br />

concepts and projects<br />

Launch <strong>of</strong> Hypergreen, a concept <strong>of</strong> an ecologically responsible<br />

building for <strong>the</strong> world’s mega cities, developed in partnership with<br />

architect Jacques Ferrier.<br />

� Creation <strong>of</strong> a university chair in <strong>the</strong> « Science <strong>of</strong> materials for<br />

sustainable construction », with leading centers <strong>of</strong> academic<br />

excellence in France and <strong>the</strong> US in 2006<br />

� Creation and co-leading <strong>of</strong> a 3-year project launched in 2006 with<br />

WBCSD: Energy Efficiency in Buildings to map out <strong>the</strong> transition to a<br />

world where buildings consume zero net energy<br />

� Leading member <strong>of</strong> <strong>the</strong> United Nations Environmental Program for<br />

sustainable building and construction


Hypergreen, a concept tower for a sustainable<br />

world<br />

� Developed by<br />

French architect Jacques Ferrier<br />

in partnership with <strong>Lafarge</strong>:<br />

� Designed for <strong>the</strong> world’s megacities<br />

with <strong>Lafarge</strong>’s innovative products,<br />

especially Ductal® and Agilia®,<br />

its orientation enables <strong>the</strong> capture<br />

<strong>of</strong> <strong>the</strong> maximum amount <strong>of</strong> sunlight<br />

and wind.<br />

Hypergreen generates <strong>the</strong> main<br />

energy necessary to cover<br />

its own needs<br />

53 ©Jacques Ferrier architectes


A close partnership<br />

with architects<br />

© Benoît Fougeirol<br />

Agence ECDM


55<br />

A long-term partnership<br />

� Sharing expertise with architects through regular working<br />

sessions to our Research Center<br />

� Developing new products to meet <strong>the</strong> needs <strong>of</strong> architects<br />

and being a source <strong>of</strong> creation<br />

� Organizing conferences on future challenges in architecture<br />

� Princeton, USA “Architecture and Technology:<br />

Concrete Futures”<br />

� Shanghai, Tongji University (China): “urban planning<br />

in <strong>the</strong> world’s mega cities”<br />

� Columbia University, NY : ‘’Concrete Innovation<br />

& Sustainable Architecture’’<br />

� Being <strong>the</strong> exclusive partner <strong>of</strong> international architecture<br />

exhibitions and symposiums<br />

� Partner <strong>of</strong> <strong>the</strong> Cité Internationale de l’Architecture in Paris<br />

� Supporting young architects


56<br />

Recent milestones<br />

� May 2008 – inauguration <strong>of</strong> <strong>the</strong> villa Navarra, Muy, France, by<br />

Rudy Ricciotti, ro<strong>of</strong>ing structure made with Ductal®<br />

� April 2007 – inauguration <strong>of</strong> <strong>the</strong> administrative building<br />

<strong>of</strong> Thiais Bus Center, France covered with a Ductal® skin<br />

� May 2006 - inauguration <strong>of</strong> first highway bridge made<br />

with Ductal® in Iowa, USA<br />

� 2005 – <strong>the</strong> world’s largest aquarium in Atlanta, USA,<br />

whose ultra resistant tanks were made with Agilia®<br />

� 2005 – <strong>the</strong> Millau viaduct, France, whose piers are<br />

constructed with a high performance concrete<br />

� The Footbridge <strong>of</strong> Peace in Seoul designed by Rudy Ricciotti<br />

and built using Ductal®<br />

� Hypergreen, a concept <strong>of</strong> an ecological tower for <strong>the</strong> world’s<br />

mega cities in partnership with Jacques Ferrier


57<br />

Ductal® for <strong>the</strong> Footbridge <strong>of</strong> Peace<br />

in Seoul, Korea, by architect Rudy Ricciotti<br />

� Built in 2002<br />

using Ductal® ultra-high<br />

performance fiber-reinforced<br />

concrete<br />

� It crosses <strong>the</strong> Han River, linking<br />

Sunyudo Island to <strong>the</strong> heart<br />

<strong>of</strong> Seoul<br />

� The Footbridge <strong>of</strong> Peace is 130m<br />

long and 4.3m large, its deck is<br />

a mere 3cm thick with a static height<br />

<strong>of</strong> 1.30m<br />

� This was made possible by using<br />

Ductal®<br />

� “Concrete is now blending into<br />

<strong>the</strong> landscape!”<br />

© E.Jae-Seong/Architecte Rudy Ricciotti


58<br />

Agilia® for <strong>the</strong> Spinnaker Tower<br />

in Portsmouth, UK<br />

� By Scott Wilson Advanced<br />

Technology <strong>Group</strong><br />

Built in 2004<br />

� The UK’s tallest public viewing<br />

tower outside London - 170m above<br />

<strong>the</strong> sea<br />

� Made with <strong>the</strong> innovative concrete<br />

Agilia®, a self-placing and self<br />

leveling concrete,<br />

a well adapted solution for this<br />

vertical architectural structure giving<br />

a perfectly finished, aes<strong>the</strong>tic and<br />

high quality result<br />

� The Spinnaker Tower <strong>of</strong>fers<br />

a sight for 23 miles or more thanks<br />

to three viewing platforms at 100m,<br />

105m<br />

and 110m<br />

©Garth Dale


59<br />

The Millau Viaduct, France<br />

� Architect Lord Norman Foster,<br />

Foster and Partners<br />

� The world’s tallest bridge with<br />

343m high to <strong>the</strong> top <strong>of</strong> <strong>the</strong> pylons<br />

� An extraordinary multi-span-cable<br />

-stay structure <strong>of</strong> 2,460m in length<br />

� The seven piers were constructed<br />

in C60 high performance concrete,<br />

a concrete 0/14 dosed at 400kg/m3<br />

<strong>of</strong> CPA – CEM I, 52.5 PMES CP2<br />

cement produced by two concrete<br />

plants with a nominal capacity <strong>of</strong> 80m3/h.<br />

� A concrete chosen for its durability and its high mechanical resistance:<br />

• Protection against alkaline reaction (level C)<br />

• Protection against differential internal sulphate reactions<br />

• Frost resistance according to <strong>the</strong> GRA 2002 rules<br />

• Durability in relation to protection <strong>of</strong> <strong>the</strong> reinforcing material<br />

Daniel Jamme / Photothèque Eiffage


60<br />

High performance aggregates for<br />

<strong>the</strong> Rion-Antirion Bridge<br />

� Built in 2004 by Gefyra<br />

� The idea first came out a century ago: to conceive a bridge<br />

that links <strong>the</strong> Pelopponesus to mainland Greece<br />

� It is 2,800m long - <strong>the</strong> longest suspension bridge ever built<br />

requiring:<br />

� 750,000 tons <strong>of</strong> <strong>Lafarge</strong><br />

high performance aggregates<br />

were supplied to guarantee<br />

an extremely durable structure<br />

� The bridge can withstand<br />

250km/h winds, a collision<br />

with an 180,000-ton oil tanker<br />

and an earthquake measuring<br />

up to 7 on <strong>the</strong> Richter scale<br />

©Harry Paralis


<strong>Lafarge</strong>’s Excellence<br />

Courstesy <strong>of</strong> <strong>Lafarge</strong> Building Materials Holding Egypt


62<br />

Our Strengths<br />

� Our people and <strong>the</strong>ir know-how<br />

� Our unique business mix, with worldwide and local leadership positions<br />

in all our activities<br />

� Our balanced geographical presence, with a proven potential<br />

for organic growth and multiple development opportunities<br />

� Our innovative products adding value for our customers<br />

� Our competitive advantage in research & development<br />

� Our strong commitment to sustainable development, with tangible<br />

results in social and environmental areas and <strong>the</strong> commitment<br />

to leading <strong>the</strong> way in sustainable construction and to achieving<br />

<strong>the</strong> level <strong>of</strong> <strong>the</strong> world’s safest industrial groups<br />

� Commitment to being ranked among <strong>the</strong> world’s best industrial groups<br />

in: health and safety, protection <strong>of</strong> <strong>the</strong> environment,<br />

social responsibility and corporate governance<br />

A step ahead

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