World Leader in Building Materials. April 2011

Transcription

1 World Leader in Building Materials April

2 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 2 2

3 A well balanced geographical portfolio, present in 78 countries and on every continent Western Europe Workforce: 15,700 Sales: 4,313 M Central and Eastern Europe Workforce: 7,700 Sales: 1,043 M North America Workforce: 10,800 Sales: 3,336 M Asia Workforce: 19,500 Sales: 2,680 M Latin America Workforce:3,400 Sales: 894 M Middle East and Africa Workforce: 18,900 Sales: 3,903 M 3 Lafarge 2010 key figures 3

4 A worldwide presence to benefit from different markets opportunities 8,8% 16,6% 26,7% 31,5% Sales by business line 59,7% 5,5% 6,5% Sales by geographic area 24,1% 20,6% Cement Aggregates & Concrete Gypsum Western Europe North America Africa & Middle East Central and Eastern Europe Latin America Asia 4 4

5 Cultural diversity to enrich the Group s skills 25,7% 20,7% Western Europe 4,4% 10,1% Split of employees by region % 14,2% North America Africa & Middle East Central & Eastern Europe Latin America Asia 24,9% 5 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 5

6 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. focus on Sustainable Construction Carbon footprint reduction of our products and of buildings built with our products Energy savings in our production processes and in buildings built with our products Reduction of the cost of construction 6 6

7 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 7 7

8 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 8 8

9 Cement: a universal product used daily 9 9

10 Priority to emerging fast-growing markets World Leader in Cement 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

11 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 & Our dust emissions were reduced by 35.7% between 2005 and

12 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

13 Aggregates & Concrete: Innovation at the heart of our strategy DR Médiathèque Lafarge - Ignus Gerber

14 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 14 14

15 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 15 15

16 Gypsum: No. 3 Worldwide 16 16

17 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

18 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

19 Health & Safety: Lafarge s Top Priority 19 DR Médiathèque Lafarge - Diego Giudice 19

20 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

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22 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

23 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

24 More than ever committed to Sustainable Development 24 24

25 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 25 25

26 26 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

27 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 27 Example BEFORE (1996) AFTER (2010) UNDER WORKING (1996) Limestone quarry, Korea, Baekdudaegan Canada - Rehabilitation of Brookfield quarry. Having diverted 2 waterways and recreated their occupants' habitat, Brookfield now offers footpaths to discover Canadian nature and is certified by the Wildlife Habitat Council. 27

28 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

29 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 29 29

30 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 countries rewarded By trade organizations and independent associations For initiatives in health and safety, sustainable construction, respect for the environment, support to stakeholders * WBCSD: Worldwide Business Council for Sustainable Development 30

31 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 31 31

32 Dialogue with stakeholders (1/3) Who are we talking about? Main families of stakeholders around our sites Local media Elected officials Government and public services Local dignitaries & professionals Associations A special place for Employees / representatives Opinion makers: doctors, teachers Professional & trade organizations Other industries Schools colleges Neighbors Customers Shareholders (if listed) Stakeholders Stakeholders are.. All are.. All those those who who exercise, exercise, or or could could exercise, exercise, influence influence over over the the activity activity of of a a site site and and all all those those who who are, are, or or could could be, be, influenced influenced by by the the activity activity of of a a site. site

33 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 33 Indonesia: implementation of a programme that facilitates the availability of capital loans (micro-credits) for small and micro entrepreneurs of a community. In partnership with local financial organisations, and with the aim to improve the community general economic welfare. New small business started by a woman from the local community Sharing experiences 33

34 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 34 34

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