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 Our objectives Analyze all active quarries to evaluate their environmental potential Develop a biodiversity program on all potential sites Ensure that rehabilitation plans are in place for all quarries Our achievements In 2010, 94% of the Group quarries were analyzed based on WWF criteria In 2010, 35% of the Group quarries had identified local opportunities for habitat enhancement or education In 2010, 84.5% of the Group quarries had a rehabilitation plan
BEFORE (1996) UNDER WORKING (1996) AFTER (2010) Limestone quarry, Korea, Baekdudaegan
Example Canada - Rehabilitation of Brookfield quarry . Having diverted 2 waterways and recreated their occupants' habitat, Brookfield now offers footpaths to discover 2727 Canadian nature and is certified by the Wildlife Habitat Council. 27 Environment protection: reduce Water Footprint (3/3)
Our objectives Map sites in areas of water scarcity and measure their water footprint Choose pilot sites
Our achievements 73% of our sites had a water recycling system in 2010 Experience acquired at pilot sites allowed writing guidance for implementation of the water action plan. It includes instructions for • Step 1: Raising awareness • Step 2: Building the water footprint • Step 3: Reducing water footprint • Step 4: Launching actions with the local communities
Example Romania : The pilot project conducted at Medgidia cement plant has identified measures to reduce water consumption, so that the plant has an action plan which is rolled out in 2011
2828 28 Acting globally: Group Partnerships
With WWF since 2000
Climate change: continue CO2 emissions reduction
Persistent pollutants: improve tracking and reporting
Water footprint: improve understanding in order to reduce
Biodiversity: apply biodiversity indicator and quarry rehabilitation management system
Promote sustainable construction
Help Business Units develop local joint initiatives with WWF
With Care since 2003
Spread our know-how regarding the fight against HIV/AIDS
A system to evaluate the impact of our actions regarding local communities
Program to improve the quality of housing of lower income people in emerging countries
2929 29 Acting globally: leadership role in international bodies and recognition by third parties
Member of the United Nations Global Compact since 2003
Member of the Global Business Coalition against AIDS since its founding in 2002
Member of WBCSD* : Founder and core-member of the Cement Initiative for Sustainable Development (CSI) • The world’s 23 largest cement companies work to improve sustainable development • 5 Chinese cement manufacturers joined CSI in 2009 Co-chair of Energy Efficiency in Buildings • An international project aiming to reduce energy use in buildings
More than 80 external recognitions in 2010 19 countries rewarded By trade organizations and independent associations For initiatives in health and safety, sustainable construction, respect for the environment, support to stakeholders...
3030 * WBCSD: Worldwide Business Council for Sustainable Development 30 Acting globally: permanent dialogue with two expert external panels who act as ‘critical friends’
Stakeholder Panel 10 members : NGOs, architect, unions’ representatives, environmental experts, socially responsible investor,… Created in 2003 Two formal meetings per year and one Lafarge industrial site visit Gives recommendations on the Group’s sustainable development management and performance Participates in the Sustainability Report
Consultative Biodiversity Panel 10 members Created in 2006 Two meetings per year Advises the Group on its biodiversity strategy
3131 31 Dialogue with stakeholders (1/3) Who are we talking about? Main ‘families’ of stakeholders around our sites
Local Elected Government and media officials public services
Opinion makers: Local dignitaries doctors, teachers & professionals A special place for Employees / Professional & representatives trade Associations organizations
Shareholders Other (if listed) industries Schools Neighbors Customers colleges
Stakeholders are…..“All those who exercise, or could exercise, influence over the activity of a site and all those who are, or could be, influenced by the activity of a site.”
3232 32 Dialogue with stakeholders (2/3) Group local communities targets Commitments made in Sustainable Development Report
Our objectives Have 100% of local site managers trained Ensure frequent, regular and structured meetings with identified local stakeholders Ensure an annual structured local action plan for each site Implement a vision on partnering communities to support long-term development
Our achievements, in 2010 include: 55% of key managers trained on stakeholder management 65% of sites meeting with their local communities regularly 51% of sites with annual action plans to engage with local stakeholders 70% of managers have a long-term vision
Example Indonesia : implementation of a programme that facilitates New small business the availability of capital loans started by (micro-credits) for small and a woman from the micro entrepreneurs of a local community. In partnership with community local financial organisations, and with the aim to improve the Sharing experiences community general economic welfare. 3333 33 Dialogue with stakeholders (3/3) Further actions with local communities in countries where we operate
India - Training in masonry for unemployed youths Located in rural areas where the population is hit by low-income levels and unemployment, the Lafarge India plants participate in projects to integrate unemployed youths in masonry jobs.
Ecuador - Assistance program for local growers Lafarge carries out an agricultural development project by teaching communities around the plant how to grow blackberries to provide a regular source of income.
Nigeria – IT learning centers development in Nigeria Why ? To anticipate the intellectual needs of the region's young people and students. Since 2010, these centers in Ewekoro and Sagamu have been certified by Microsoft
3434 34 Addressing new construction trends
3535 35 Research & Innovation at Lafarge A competitive advantage
Long term presence in Cement, Concrete, Aggregates and Gypsum
A scientific approach developed over 20 years
From empirical expertise to scientific understanding of mechanisms
A unique multidisciplinary expertise
DR Médiathèque Lafarge
3636 36 The Technology Center near Lyon: an international pool of highly skilled experts
Research & Development Undertake research projects in a multi-disciplinary environment Design the solutions for tomorrow’s construction systems Preserve natural resources and reduce the Group’s carbon footprint Cement Division engineering teams Provide technical assistance to cement plants Manage cement project engineering Continuously improve industrial performance
3737 37 An international network linking our research and technical centers
150 M€ per year (1% of our turnover) dedicated to technology and innovation in products, systems and industrial processes
Multi-division research center
Division Technical Centers
Development laboratories in the largest BUs
Our Technical Centers 3838 38 The world’s largest building materials research center
Research in France: 250 employees, and over a dozen nationalities
40 research projects every year
A portfolio of more than 800 patents
Unique research facilities dedicated to concrete innovation Real-time testing of research results conducted in laboratories, on an industrial scale
Accelerated launch of new and innovative concretes onto the market
3939 39 Cutting-edge research in collaboration with the best academic teams in the world
Close partnerships with the most prestigious universities and engineering schools, to accelerate advances in materials science
Europe Asia North America
An education and research chair: “The Science of materials for sustainable construction”
Member of the Nanocem network
4040 Collaboration with MIT’s Concrete Sustainability Hub 40 Over 60% of the Research Center’s budget dedicated to sustainable construction issues
Key challenges for Lafarge research and development:
Improving energy efficiency of our production processes and buildings made with our products
Reducing carbon footprint
CO 2 emissions Limiting environmental impact Other reduction
Effective water management Energy Preserving natural resources efficiency
Reducing the cost of construction Comfort & Natural resources Quality of Life Improving aesthetics Health & Safety
4141 41 Building sustainably A major global challenge
Environment Demographic Growth Climate Change
An opportunity for Lafarge
4242 42 A global and strategic challenge for Lafarge
Combining construction and sustainable development ⇒Building homes and infrastructures which contribute to social and economic development while preserving an environment in which future generations can live
Taking into account the entire lifecycle of constructions
Usage of the construction Demolition and Construction deconstruction
Quarrying & production of Recycling materials
Beyond the production of materials, the vital challenge of sustainable construction lies in the life of buildings and infrastructures. 4343 43 Lafarge 7 strategic axes towards sustainable construction
1. Process and manufacturing 2. Products and services 3. Research and Development 4. Training 5. Communication 6. Lobby 7. Partnerships
4444 44 Lafarge is tackling all levels of the construction chain
Aggregates
Development of innovative materials with a lower environmental footprint
Clinker Cement Concrete
The material itself
4545 45 Lafarge is tackling all levels of the construction chain
Aggregates
Clinker Cement Concrete
The material itself
4646 46 Lafarge is tackling all levels of the construction chain
Aggregates Plasterboard
Concrete Construction Buildings method To create efficient solutions over the lifecycle of buildings and the infrastructures 4747 47 Developing local sustainable construction partnerships
Collaborate with builders and engineer on the design and construction of energy efficient building projects using Lafarge concrete-based and other solutions with optimized or reduced costs
Example Jambert -Lafarge Energy Efficient House France Supplying with: Expertise on construction materials to support the contractor, design office, workers on the jobsite Materials: Agilia® concrete solutions, Unimat™ insulating flooring solutions , Pregymax™ 29.5 and Pregymetal™ plasterboard systems, Synia®, Pregydro™… Pedagogic information on efficiency aspects of the project to public all along the construction
4848 48 Our value-added solutions
DR Médiathèque Lafarge Blended cements with reduced CO 2
Growing use of cement additives such as slag or fly ash to produce blended cements with a lower carbon footprint
Today, 60 % of Lafarge’s cement products are blended cements
Example: Athlos TM , a blended cement for the Greek market
Masonry cement CEM IV 32.5 with a clinker, fly ash and limestone
=> Reduced environmental footprint
-50% CO2 emissions versus Portland cement
5050 50 Ductal®, a material that combines exceptional performance characteristics
Compressive strength: 6 to 8 times greater than conventional concrete
Flexural strength: 10 times greater than conventional concrete
Ductility: ability to bend under excessive loads without breaking
Superior surface aspects
Durability: 100 times greater than standard references
Ductal® is a structural and architectural material designed to be used without re-bars
very relevant for earthquake resistant structures
lighter structures, with reduced volumes and weight
major civil engineering projects and buildings
5151 5151 Ductal®: reducing environmental impact over the full lifecycle
7,30m
0,20m Typical braced steel girders - concrete slab bridge 1,10m Two lanes, 30m span
7,30m DUCTAL ® « Pi » shape bridge – developed in collaboration with 1,00 m ...... FHWA and MIT
DUCTAL ® bridge vs. Standard concrete-steel bridge
35% savings in terms of raw materials
46% savings in terms of primary energy
53% savings in terms of CO 2 emissions
5252 52 Agilia ®, the first self-compacting concrete
Easy to use, aesthetic and ergonomic for superior quality results
Very fluid, able to pour easily into the smallest corners and spaces of the mold or frame, eliminating some of the most physical or noisy steps, such as vibration
Allows worksite productivity gains
5353 5353 Chronolia ®, the construction site booster
Can be transported and handled like conventional concrete
Once laid, very rapidly develops high mechanical strength Formwork can be removed just 4 hours after manufacture, vs. 12-20 hours for conventional concrete
Used on all construction sites, with the same workability as a conventional ready -mix concrete
Increases worksite efficiency and productivity Optimizes deadlines, cycle times, the use of equipment and costs
5454 5454 Extensia ®, the new dimensions of concrete
Allows large surface pouring without joints up to 400m² for floors subjected to heavy traffic and storage loads
Provides better performance in terms of abrasion, flexion and traction
Allows a reduced slab thickness and a reduction in CO 2 emissions over its life cycle
5555 5555 Synia ®, the new generation plasterboard
A major revolution in the plasterboard industry
The first plasterboard with four tapered edges produced on line
An exclusive and patented technology based on four years of studies
Easy to use, offering a perfect finish: ideal for ceilings and high partition walls as well as for creating large, flat surfaces free from imperfections
5656 5656 PLAtec ®, made-to-measure solutions for interior design
PLAtec ®, tailor-made plasterboard solutions for use in creative interior layouts Made-to-measure plasterboard shapes from the drawing board to final factory production and assembly Time saving, easier installation and quality finishing
Easy to use and inexpensively designed plasterboard that works! PLAtec ® products can be easily assembled on the work site to build architectural works PLAtec ® can be widely applied in finishing work: to cover columns, structures and suspended ceiling friezes and to create totally concealed access hatches
5757 5757 WAB a water-resistant plasterboard
Three key benefits:
Very low water absorption <3%
High resistance to mold
More stable mechanical strength after damping
Same level of performance and aesthetic qualities whatever the ambient humidity
Ideal for areas prone to very high humidity, pools, saunas, exterior walls
Sold under different brands in the United Kingdom, France, Germany, Sweden, USA, South Korea, Poland and Romania
5858 5858 Thermedia® , a new generation of concretes to reduce heat losses in buildings
First product developed for the French market, in partnership with French contractor Bouygues: a C25 with 3 times lower thermal conductivity than a standard concrete, with equivalent mechanical strength
35% reduction in energy losses from thermal bridges
λ = 0.58 W/m.K Ψ = 0.63 W/m.K
5959 59 Pregymax™ 29.5, the market leader in thermal and acoustic insulation
Plaster board combining highest thermal and acoustic insulation properties
Maximum ease of installation
Maximum acoustic comfort with an acoustic absorption factor Rw = +17dB
Highest thermal insulation properties with expanded polystyrene foam (thermal conductivity λ=29,5 m².K/W)
6060 60 Artevia ®: the art of concrete
A decorative concrete range for internal or external use
Offers aesthetic, economic and sustainable solutions
6161 61 Hydromedia™: an innovative solution for Sustainable Urban Drainage Systems
A new fast draining concrete pavement solution that rapidly directs storm water off streets, parking surfaces, driveways and walkways.
Minimizes the urban impact on the natural water cycle, providing natural groundwater recharge in urban environments.
Thanks to high permeability and drainage capacity, allows for rapid surface water removal in the event of storms, reducing the risk of flash flooding.
Reduces the risk of water pollution, since rainwater is not trapped on the surface.
6262 62 A close partnership with architects
63 63 A long-term partnership
Sharing expertise with architects through regular working sessions in our Research Center
Developing new products to meet the needs of architects and be a source of creation
Organizing conferences on future challenges in architecture Princeton, USA “Architecture and Technology: Concrete Futures”
Shanghai, Tongji University (China): “urban planning in the world’s mega cities”
Columbia University, NY : ‘’Concrete Innovation & Sustainable Architecture’’ – October 2008
Being the exclusive partner of international architecture exhibitions and symposiums
Partner of the Cité Internationale de l’Architecture in Paris
Supporting young architects
6464 64 French Pavilion, 2010 World Expo: Shanghai, China
Lafarge is a sponsor of the French Pavilion in the 2010 World Expo in Shanghai. The pavilion was designed by architect Jacques Ferrier. The Lafarge alcove was created with Ductal ®, the Group’s ultra high- performance concrete and PLAtec ® plasterboard.
6565 65 Minas Gerais State Administrative Center, Brazil
Belo Horizonte, a cement concrete and gypsum project designed by architect Oscar Niemeyer, Governor Palace
6666 66 CCTV Headquarters: Beijing, China
The Chinese Central Television (CCTV) Headquarters uses Lafarge cement and was designed by architects Ole Scheeren and Rem Koolhaas from the firm OMA.
6767 67 The Musée d’Art Moderne in Lille, France
The Musée d'Art Moderne in Lille, in northern France, now has a new perforated Ductal® façade. The new façade of the extension, designed by architect Manuelle Gautrand, is composed of mesh panels made from Ductal® with a total surface area of 185m². The ductile properties of the material made it possible to produce large but thin openwork panels with randomly dispersed openings - something impossible to create using traditional concrete. The panels are up to 5.5m wide, between 3m and 8m high and a maximum of 7cm to 9cm thick.
6868 68 Cape Town Stadium: Cape Town, South Africa
The Cape Town Stadium, which hosts the 2010 World Cup, hold 68,000 spectators and was built using « Ultra Post Tension » a value-added concrete available in South Africa.
6969 69 Olympic Village: Vancouver, Canada
Completed in 2009, the Vancouver Olympic Village is a certified LEED project (Leadership Energy and Environmental Design), built using Ultra Series ® and Agilia ® concretes.
Over 85,000m 3 of concrete were supplied to the worksite. An example of sustainable construction.
7070 70 Energy Efficient Social Housing: Colombes, France
Due to its partnership with Bouyues Construction, Thermedia 0.6 B, a new generation of concrete contributing to a building’s energy performance, was able to used in this project.
Facades built using Thermedia 0.6 B. An example of sustainable construction
7171 71