2005 Sustainability Report - Lafarge

Two social audits were conducted
during 2005 in China and India by an
external organization based on the
Global Compact framework reference.
Market coordinators in the Business
Units are set to monitor progress made
on action plans defined following these
audits. In the future, Lafarge employees
will monitor lower-risk product
categories so as to roll out the program
and entrench the expertise internally.
Results of the social audits are available
on our website.
Sales
€15,969 M
€14,436 M*
To take this approach further, Lafarge
plans to:
• commission a third party to conduct
several social audits on its suppliers
in countries at risk from a Human
Rights perspective;
• introduce a grid to assess the maturity
of Business Units in the way they
handle supplier relations from a
sustainable development perspective.
REDISTRIBUTION OF VALUE CREATED TOWARDS OUR STAKEHOLDERS
Employees
Associations
State
and local
authorities
Wages
Charitable
contributions,
sponsorships and
memberships
Taxes
Dividends
€2,886 M €546 M
Financial
costs
Purchases
€1,232 M*
New issue of capital Transfers
€386 M €155 M
€252 M*
€574 M*
Number of Business
Units that have included
at least one sustainable 55
development initiative
in their PPP
(Purchasing Performance Plan)
Number of sustainable
development initiatives 75
proposed in PPPs
Sales increased by more than 10% in 2005 on the back of expansion in our markets in volume and pricing terms. The increase in capital expenditure
is attributable to a higher capital expenditure devoted to maintaining our production facilities and the launch of work on additional production
capacity to support expansion in our markets.
Clients
Net cash generated by operating activities** €1,340 M
€2,442 M*
Shareholders
Banks and
bond holders
Financial
investment
(acquisition
of shares)
€373 M
Other companies
in our sector
Net repayment
of the debt
€11 M*** €448 M €54 M
€11 M*
Suppliers
Total financial resources
€1,881 M
€2,058 M*
€474 M*
€451 M*
Industrial investments
€526 M €9,872 M €1,454 M
€434 M*
€504 M*
€442 M*
€8,944 M*
* 2004 figures.
** This amount includes a WCR (Working Capital Requirement) variation of €-340M (-427 in 2004).
*** Indicative amount on contributions and sponsorships made by the Group in 2005.
Note: Data displayed in this table is directly extracted from the Group consolidated data and related notes.
€1,133 M*
LAFARGE | 2005 SUSTAINABILITY REPORT | PAGE 35