materials for building our world april 2003. 2 lafarge in brief w world leader in building materials...

MATERIALSFOR BUILDINGOUR WORLD

April 2003

2

LAFARGE IN BRIEF

World leader in building materials

World leader in its four divisions:no. 1 in Cement, no. 2 in Aggregates & Concrete,no. 1 in Roofing, no. 3 in Gypsum

Operates in 75 countries and employs 77,000 people

2,120 industrial sites worldwide in 2001

€ 14.6 billion in sales in 2002

Listed on Paris, London, Frankfurt, New Yorkstock exchanges

Profile and key figures

3

FOUR DIVISIONS Cement

Cement, hydraulic binder and lime product ranges designed to meet the needs of the construction industry and civil engineers.

Aggregates & Concrete Aggregates, ready-mix concrete, and

prefabricated concrete units, asphalt and paving for builders of engineering structures, roads, buildings, etc.

Profile and key figures

4

FOUR DIVISIONS

Roofing Concrete, clay and metal roof tiles

product ranges,roof system components and chimney systems

Gypsum Plasterboard systems, gypsum

blocks and sprayable plaster intended for construction finishings, new buildings and renovation

Profile and key figures

5As at Dec. 31, 2002

Gypsum8%

Cement48%

Roofing10%

Aggregates& Concrete

33%

SALES BY DIVISION

Other1%

Profile and key figures

6

Western Europe

41%

Asia-Pacific 9%

Africa / Indian Ocean 6%Latin America 5%

North America30%

Mediterranean Basin 4%

Centraland Eastern Europe

5%

29% of sales are generated in emerging markets

Profile and key figures

SALES BY REGION

As at Dec. 31, 2002

7

Africa9%

Asia14%

North America20%

Mediterranean Basin6%

Centraland Eastern Europe

12%

Western Europe33%

Latin America6%

EMPLOYEES BY REGION

46% of all employees are in emerging countries

Profile and key figures

As at Dec. 31, 2002

8

R&D: A GLOBAL STRUCTURE

Central Research Laboratory in France

Over 500 people around the world dedicatedto research

A decentralized network of technical centers on 5 continents

A global budget of over € 100 million

A portfolio of several hundred patents

Profile and key figures

9

GLOBAL R&D PARTNERSHIPS

Canada: Laval, Sherbrooke

United States: MIT, Berkeley, Princeton,

France: framework agreement with the CNRS

Suisse: Ecole Polytechnique de Lausanne

Profile and key figures

10

Resident institutionalinvestors

30.6%

Individualshareholders

13.1%

Non-residentinstitutional investors54.9%

Owm shares held1.4%

247,000 individual shareholders, among which 19.4% are employees of the Group

OWNERSHIPProfile and key figures

Capital as at Dec. 31, 2002

11

SALES AND NET OPERATING INCOME GROWTH

Profile and key figures

14,613,7

9,8

10,5

12,2

2 132

1341

1 544

1 8041 934

5

7

9

11

13

15

17

1998 1999 2000 2001 2002

800

1000

1200

1400

1600

1800

2000

2200

Sales Net operating income

Income in millions of €Sales in billions of €

(*) Operating income on ordinary activities of equity affiliates is no longer included in

the Group's operating income.

*

*

**

*

12

LONG-TERM GROWTH STRATEGY

1956 North America

Brazil 1959

Eastern Europe 1990

1976/1989Western Europe+ Indonesia

1995 Asia

1997

2001

Profile and key figures

13

ACQUISITIONS & MAJOR PARTNERSHIPS IN 2002

China Investment in Chongquing / Acquisition of Shunfan - Cement

Germany - Eastern Europe Acquisition of plasterboard activities of Gyproc - Gypsum

South Korea Joint-venture with Tong Yang - Cement

Serbia and Slovenia Acquisition of BFC and Cementarna Trbovlje - Cement

Thailand Joint-venture Lafarge Siam Roofing - Roofing

Profile and key figures

14

NEW PRODUCTION UNITS IN 2002

China Dujiangyan - Cement

France Ready-mix plant in Vaise - Aggregates and Concrete

Malaisia Dengkil - Roofing

Poland Gacki - Gypsum

United States Sugar Creek (Missouri) Roberta (Alabama) - Cement

Profile and key figures

15

RANKED AS SECTOR LEADER BY MOST SOCIAL RESPONSIBILITY ANALYSTS

Highest sector score in the Dow JonesSustainability Index

Selected for inclusion in the SAM EmployeeOwnership Index

Selected for inclusion in the new Ethibel Sustainability Index

Selected for inclusion in the FTSE4Good Europe and global Index

A commitment to sustainable development

16

ENVIRONMENTAL COMMITMENTS

Reduction of CO2 emissions: target of reducing CO2 emissions

by 20% per ton of cement produced from 1990 to 2010

Air emissions and local impact: target of a maximumof 50 mg/Nm3 for cement plant dust emissions

Energy consumption and alternative energies:30% of cement plants are equipped for the use of alternative fuels

Implementation of environmental audits:in 2004, 100% of sites must have been subjected to environmental audits within the past 4 years

Rehabilitation of quarries: target of 80% of quarriesdeploying rehabilitation plans by 2004

A commitment to sustainable development

17

STRATEGIC PARTNERSHIPS

WWF Plan to reduce C02 emissions

Performance indicators and quantified objectives

Biodiversity strategy for quarry redevelopment

Contribution to Forests Reborn program

Local partnership agreements (China, Spain, Austria)

WBCSD* A joint action plan to promote sustainable development

in conjunction with nine of the world’s other leading cement producers (CSI: Cement Sustainability Initiative)

A commitment to sustainable development

* World Business Council for Sustainable Development

18

CEMENT: KEY FIGURES

€ 6,948 million in sales

37,521 employees

142 production sites in 42 countries Businesses:

• Cement, hydraulic binder and lime product ranges designed to meet the needs of the construction industry and civil engineers

Cement

As at Dec. 31, 2002

19

CEMENT SALES BY REGIONCement

In millions of €

North America1,579

Western Europe 2,274

Sub-Sahara Africa / Indian Ocean756

Latin America 502

Asia-Pacific981

Mediterranean Basin 455 Central

and Eastern Europe401

As at Dec. 31, 2002

20

CEMENT WORKFORCE BY REGIONCement

As at Dec. 31, 2002

North America3,653

Western Europe 7,876

Sub-Saharan Africa / Indian Ocean5,957

Latin America 2,483

Asia-Pacific7,535

Mediterranean Basin 3,670

Eastern Europe6,350

21As at 31.12 2002

THE CEMENT DIVISION WORLDWIDE

Cement

22

AGGREGATES & CONCRETE: KEY FIGURES

€ 4,768 million in sales

21,069 employees

674 quarries and 1,078 concrete plantsin 23 countries

Businesses:

• Aggregates, ready-mix concrete, prefabricated concrete units, asphalt and paving for builders of engineering structures, roads, buildings, etc

Aggregates & Concrete

As at Dec. 31, 2002

23

AGGREGATES & CONCRETE SALES BY REGIONAggregates & Concrete

In millions of €

Western Europe 1,856

Other countries507

North America1,405

As at Dec. 31, 2002

24

AGGREGATES & CONCRETEWORKFORCE BY REGION

Aggregates & Concrete

North America9,961

Western Europe 6,819

Sub-Saharan Africa / Indian Ocean818Latin America 1,455

Asia-Pacific718

MediterraneanBasin431

Eastern Europe867

As at Dec. 31, 2002

25

THE AGGREGATES & CONCRETE DIVISION WORLDWIDE

Aggregates & Concrete

As at Dec. 31, 2002

26

ROOFING: KEY FIGURES

€ 1,538 million in sales

12,106 employees

159 locations in 32 countries Businesses:

• Concrete, clay and metal roof tile product lines,roof system components and chimney systems

Roofing

As at Dec. 31, 2002

27

ROOFING: BREAKDOWN OF SALESRoofing

Western Europe without Germany

714

Rest of the world 376

Germany 448

As at Dec. 31, 2002

In millions of €

28

ROOFING WORKFORCE BY REGIONRoofing

North America618

Western Europe 7,595

Sub-Saharan Africa / Indian Ocean300Latin America 449

Asia-Pacific1,679MediterraneanBasin58

Eastern Europe1,408

As at Dec. 31, 2002

29

THE ROOFING DIVISION WORLDWIDERoofing

As at Dec. 31, 2002

30

GYPSUM: KEY FIGURES

€ 1,146 million in sales

5,319 employees

67 production sites in 22 countries Businesses:

• Plasterboard systems, gypsum blocks and sprayable plaster intended for construction finishings, new buildings and renovation

Gypsum

As at Dec. 31, 2002

31

GYPSUM SALES BY REGIONGypsum

In millions of €

Western Europe 604

Other countries297

North America245

As at Dec. 31, 2002

32

GYPSUM WORKFORCE BY REGIONGypsum

As at Dec. 31, 2002

North America703

Western Europe 2,755

Latin America 180

Asia-Pacific1,033

MediterraneanBasin119

Eastern Europe532

33

THE GYPSUM DIVISION WORLDWIDEGypsum

As at Dec. 31, 2001

M a t e r i a l s f o rbuilding our world

www.lafarge.com