Group

"Since 2006 we have pursued a strategy of development and differentiation built on clear and ambitious priorities:

We have 2 strategic priorities:

• Pursuing growth in emerging markets.
• Accelerating innovation in order to:
  • meet the need for more sustainable construction methods,
  • increase our competitive advantage through our unparalleled strengths in R&D.

We have also 3 operational priorities:

• Employee and sub-contractor health and safety.
• Cost reduction.
• Our people development.

In 2009, our employees' efforts and their teamwork made us more efficient and gave us a stronger financial structure. The Group remains focused on the same priorities in 2010."

"To stand firm in a very difficult situation, the Group had to prove its reactivity. Yes, the major economic slowdown in the developed countries impacted our volumes.

Fortunately, we profited from sustained growth in most of the emerging countries.

The Group's superb operational mobilization around generating cash-flow and defending our margins let us free up a great increase in free cash-flow despite the net fall in volumes."

"Of course! It's in great part this strategy that enabled us to withstand this turbulent period. In the long run, it's the urbanization and demographics of the emerging countries that will support the cement industry. So we must be well-positioned there. We put an additional 9 million tons into service in these countries in 2009, to which should be added 21 million tons between 2010 and 2011. Today, 90% of our new capacities serve markets seeing robust growth." 

"Every kind of innovation there is! A company that innovates is a company that moves forward. The priority of our innovative strategy is bringing concrete solutions to make buildings more energy efficient and reduce our industry's carbon footprint. It's our duty as a responsible manufacturer, and it's also the course of history, because these innovations meet growing needs in the developed countries and create new markets in the emerging countries.

So the Group will continue to adapt, while benefiting fully from the Group's portfolio and its leading position in innovation."

"Making health and safety Lafarge's top priority is the decision I am most proud of as Chairman and CEO. Our goal is to be world class in this area, although there is still a long way to go to achieve this and a great deal remains to be done. However, we are moving in the right direction. In 2009 we brought our Lost Time Injury Frequency Rate (LTIFR) below 1 for the first time. It is a good level of performance for our employees' safety.

Our Excellence Club, which recognizes business units delivering world class performance on safety, reached 25 members in early 2010 (compared to 11 in 2009). This is the proof health and safety involve all our collaborator."

"Our priority will be growth in earnings and continued strengthening of our capital structure. 2010 should be the year of recovery, but a slow recovery, during which we'll have to continue our efforts:

• continue reducing our structural costs,
• continue carrying out disinvestments,
• continue controlling working capital requirements and capital expenditures.

And as I said, our geographical portfolio and development projects in emerging countries are significant assets which will help us come out of this unprecedented economic scenario stronger than before. We can also count on our innovation capacity, which is the most dynamic and proactive in the sector."