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Aggregates & Concrete  No World Leader in Building Materials April 2011 11 1 World leader in building materials Leadership positions in all our Businesses World leader in Cement No. 2 & No. 3 worldwide in Aggregates & Concrete No. 3 worldwide in Gypsum Operating in 78 countries Employing 76,000 people 1,963 industrial sites worldwide 16,2 billion Euros in Sales 2,441 million Euros in Current Operating Income Listed on Euronext Paris stock exchange 22 2 A well balanced geographical portfolio, present in 78 countries and on every continent Western Europe Central Workforce: 15,700 and Eastern Europe Sales: 4,313 M€ Workforce : 7,700 Sales: 1,043 M€ North America Workforce: 10,800 Asia Sales: 3,336 M€ Workforce: 19,500 Sales: 2,680 M€ Latin America Workforce:3,400 Middle East and Sales: 894 M€ Africa Workforce: 18,900 Sales: 3,903 M€ Lafarge 2010 key figures 33 3 A worldwide presence to benefit from different markets’ opportunities 8,8% 16,6% 26,7% 5,5% 31,5% Sales by Sales by business line 6,5% geographic area 59,7% 20,6% 24,1% Western Europe North America Africa & Middle East Central and Eastern Europe Cement Latin America Aggregates & Concrete Asia Gypsum 44 4 Cultural diversity to enrich the Group’s skills 20,7% 25,7% Western Europe Split of North America employees Africa & Middle East Central & Eastern Europe 4,4% by region 14,2% Latin America % Asia 10,1% 24,9% About 50% in developed markets 50% in emerging markets Making diversity an asset for a common performance culture for sharing knowledge and know-how for targeting excellence everywhere for applying our values 55 5 Lafarge at the heart of sustainable construction Lafarge supports building methods respectful of man’s future and his environment by partnering with different industry players and innovates. Carbon footprint reduction of our products and of buildings built with our products focus on Sustainable Energy savings in our production processes and in buildings built with our Construction products Reduction of the cost of construction 66 66 Our priorities (1) Be among the best industrial companies in safety by ensuring a safe and healthy work environment for our stakeholders Strengthen our position in emerging countries to meet their infrastructure and housing needs in Cement, Aggregates and Gypsum respecting people and cultures 77 7 Our priorities (2) Provide our customers with innovative products and solutions to push forward the boundaries of construction An R&D center with around 240 researchers To develop value-added products and solutions Over 50% of our R&D budget is dedicated to sustainable development requirements Committed to sustainable development Reducing our environmental footprint throughout our products’ entire life cycle Care for our neighboring communities and contributing to their social and economic development 88 8 Cement: a universal product used daily 9 9 Priority to emerging fast-growing markets World Leader in Cement 44 250 employees in 49 countries 125 plants & 43 grinding stations 215 million ton annual capacity A growth strategy centered around emerging markets Chine, India, Latin America, Central & Eastern Europe, Middle East and Africa The majority of our new capacity projects are in these countries High growth potential • Huge needs in infrastructures & housing 10 10 Performance improvement continues Industrial expertise supported by over 175 years of experience Four technical centers with over 600 engineers and technicians worldwide Knowledge and experience sharing culture Continuous improvement of environmental performance Our alternative fuel usage rate reached 12% in 2010 Continuous improvement in substitution material rate: • Cement to clinker ratio was 1.30 in 2010 compared to 1.29 in 2009 and 1.28 in 2008 We’ve achieved, one year ahead of schedule, our objective of Reducing our net CO2 per ton of cement emissions rate by 21.7% between 1990 & 2010 Our dust emissions were reduced by 35.7% between 2005 and 2010 11 11 Developing Innovative and efficient solutions Advanced solutions to meet our customer’s demands varying from a basic cement to high-performance applications Ready-To-Use in UK Concreto in India Basis in Greece Mascrete in Malaysia Developing technological breakthroughs in reducing the CO2 footprint in cement applications. Full range of lower carbon cements Rapidcem in South Africa Dynamik in Poland Multibat Plus in Czech Republic 12 Aggregates & Concrete: Innovation at the heart of our strategy DR Médiathèque Lafarge - Ignus Gerber Growth in emerging countries World No.2 in Aggregates and No.3 in Concrete 579 quarries and 1,139 concrete plants in 36 countries Products and services to meet construction and infrastructure needs Aggregates, ready-mix concretes, asphalt and paving for engineering structures, roads and buildings Acceleration of our development in emerging markets Solidify positions in India, South Africa and Eastern Europe Reinforce our presence in China, Algeria and the Middle East 1414 14 Differentiation through Innovation Growing contribution of value-added products … Concrete value-added products accounted for 24% of our Concrete sales in 2010 Launch of new concretes contributing to energy performance Thermedia® developed in partnership with Bouygues Ductal® based thermal breaker International brands guaranteeing product quality and consistency Agilia ®, Chronolia ®, Extensia ®, Artevia ® 1515 15 Gypsum: No. 3 Worldwide 16 16 A profitable growth strategy No. 3 worldwide in Gypsum 8,000 employees 77 industrial sites in 30 countries Consolidate and reinforce our positions In Europe and North America: reinforce our competitive advantage and increase innovative product and solution sales Eastern Europe: develop our production capacities and product ranges Asia and Latin America: confirm our leadership through profitable growth Differentiate ourselves Increase innovative products and customer service levels Contribute to sustainable construction strengthen our expertise and human resources Reinforce benchmarking and product and process transfer 17 17 Innovative and ecological solutions for interiors Strong innovation potential for plasterboard A « system » approach: plasterboards, metal studs, compounds In 2010, 15% of our sales came from new products Some promising innovations: Synia®, plasterboard with 4 tapered edges WAB, water-resistant plasterboard Tenace 936, a light plasterboard for ceilings BA 18/900, partition system that replaces two traditional plasterboards “low dust” compound that produces less dust An ecological product 100% recyclable With a low energy content Easy to install 18 18 Health & Safety: Lafarge’s Top Priority 19 DR Médiathèque Lafarge - Diego Giudice 19 Health & Safety: our No 1 priority Our ambition is: Zero incidents and zero occupational illnesses Be amongst the safest companies worldwide Our KPIs are: LTI frequency rate (including sub-contractors) divided by 2 every 3 years 75% of our Business Units meet the strict criteria for membership of Lafarge’s H&S Excellence Club by 2015 To be achieved through: Visible and strong commitment of our leaders Continuous development of employees’ competency and behavior Implementation of common rules and standards Full integration of Health & Safety within our processes Best practices and experience sharing with the world’s best performers Recognizing Business Units with strong Health & Safety performance 20 20 21 21 Reinforcing our efforts to deliver results Reduction of Employee LTI FR* * Number of accidents leading to loss of time by million hours worked 22 22 Recognizing achievements, rewarding people H&S Month A month dedicated to Health & Safety events worldwide Targeting employees, their families, contractors, customers, communities H&S Excellence Club Recognizing Business Units which have achieved a superior level of performance DR Médiathèque Lafarge 23 23 More than ever committed to Sustainable Development 2424 24 Continue our 2012 Sustainability Ambitions Lafarge has defined a roadmap of its social and environmental commitments: 2012 Sustainability Ambitions Measurable and ambitious objectives to achieve by 2012 Results from an in-depth dialogue with stakeholders concerning: Areas where the Group has a real impact Areas where the Group can positively influence the industry Three major priorities: Health & Safety management Environment: fighting against climate change, biodiversity protection, emissions reduction Stakeholder relations management 2525 25 Environment protection: reduce emissions (1/3) Reduce CO 2 emissions Our objective Reduce net emissions per ton of cement produced from 1990 to 2010 by 20% Our achievements In 2010, we continued to outperform the CO2 emissions targets we had set for 2010,with a reduction of 21.7%, thanks to: • Fossil fuel substitution with biomass, industrial waste… • Replacement of clinker by cementitious products • Energy efficiency improvement Example China : 40% reduction in our specific heat consumption between 1990 and 2009, leading to a 29% reduction of specific net CO 2 missions over the same period. Cut other emissions Our objectives Cut our dust emissions by 30% by 2012 Cut our SO 2 and NOx emissions by 20% by 2012 Our achievements Dust emissions reduced by 35.7% in 2010 SO 2 emissions reduced by 52.8% in 2010 and NOx emissions reduced by 27.9% in 2010 2626 26 Environment protection: protect and develop biodiversity (2/3) A systematic and professional approach to biodiversity
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