Strategy

2 strategic priorities:

• Cement, primarily in growth markets.
• Innovation, particularly innovative construction systems corresponding to the new market trends of sustainable construction solutions and affordable housing.

3 operational priorities:

• The health and safety of our employees and contractors - the Group's biggest priority is to become accident-free.
• Cost-cutting - the significant progress seen in recent years shows that cost-consciousness has now become part of Group culture.
• People development - the Group is focusing on four key aspects: filling our talent pipeline, developing our talents, leveraging diversity and optimizing the effectiveness of its organization.

The urbanization and demographics of emerging countries are driving substantial needs for infrastructure and housing.
Despite the economic and financial crisis, global cement demand grew by approximately 9% in 2010, supported by the dynamism of most large emerging markets.
Lafarge is well placed to benefit from this growth thanks to its well diversified geographical portfolio, strengthened during recent years by a cement capacity increase program and the acquisition of Orascom Cement in January 2008.
Emerging markets accounted for 74% of Group's current operating income in 2010, and they are the target for most of its new production capacity projects.

In recent years, the Group has expanded its offer of high value-added products and systems to meet its customers' expectations in terms of performance, ease of use, reduced application time and recycling.

The growing demands of sustainable development are also drivers of innovation: preservation of the environment and the combat against climate change, health protection and corporate social responsibility.

Lafarge supports building methods respectful of man's future and his environment by partnering with different industry players. It focuses its innovations on reducing the carbon footprint of its products and buildings, improving the energy efficiency of its production processes and of buildings built with its solutions, and reducing construction costs.