Strategy
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Clear priorities

With the success of the 2008 Excellence plan, Lafarge continues in its development and differentiation strategy centered on clear priorities. There is a clear focus on sustainable growth, despite a more difficult short-term economic outlook.

Excellence 2008: very positive results

Very positive conclusions can be drawn from the Excellence 2008 plan. In terms of cost reduction, for example, Lafarge has already exceeded its ambitions, with 420 million euros achieved between 2006 and 2008, instead of the 340 million euros initially forecast.
Overall, Lafarge is reporting the best performance in the sector in the last 3 years, while maintaining a solid financial structure.

Free cash flow

Free cash flow is defined as the net operating cash generated by continuing operations less sustaining capital expenditures.

Clear strategic priorities

The Group strategy can be broken down into clear and ambitious priorities:

 

  • 2 strategic priorities:
    • continuing development on emerging markets
    • accelerating innovation to reach sales of €3bn with innovative products by 2012
  • 3 operational priorities:
    • ensuring the safety of our employees and targeting 0 accidents
    • continuing with cost reduction
    • developing the potential of the men and women in the Group.

Responses to current challenges

In a more difficult economic context linked to the economic consequences of the financial crisis, Lafarge is committed to a number of actions:

  • Cost reduction by €200 million by the end of 2009, as part of a new €400 million cost cutting program to be achieved over a 3 year period from 2009 to 2011. This follows Lafarge's successful cost reduction program carried out from 2006 to 2008 that will exceed €400 million at the end of 2008.
  • Total capital expenditure limitation in 2009 to approximately €2 billion.
  • Divestment program expansion beyond the €1 billion target set for 2008-2009, in order to provide additional financial flexibility.

Last update on 07/22/2009

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Completed projects

Products at the heart of architectural projects

The innovative properties of Lafarge's range of products stimulates architectural creativity. Residential buildings, foot bridges, road bridges, airports, rail stations: discover examples of projects that make use of Lafarge products.

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