Shareholders & Investors

Consolidated accounts

(1) Excluding net capital gains on sale of Egypt-Titan JV and legal provision adjustment for the 2002 Gypsum case in Q2 2008 and German cement case in Q2 2009.
(2) Basic average number of shares outstanding, as adjusted for the rights issue completed on April 28, 2009, outstanding of 221.8 million at the end of September 2008, compared to 258.9 million at the end of September 2009.

Outlook

Annual cement volumes in Lafarge's markets are expected to decline between -6% to -8% in 2009. Overall pricing is expected to remain solid for the year, despite price declines in a limited number of markets. Energy costs declined in the third quarter and are expected to further ease into the fourth quarter as compared to 2008.

The progressive improvement of the economic environment along with government stimulus plans, with their announced large focus on infrastructure spending, are expected to have a positive impact on our markets as of the second half of 2010. In addition, the fundamental need for cement continues in developing economies due to the long-term trends of urbanization, demographic growth and infrastructure requirements.

Current operating income

Highlights by business

Cement

• Sales -12% year-to-date and -16% in the quarter due to lower volumes led by difficult market conditions in Europe and North America.
• Solid growth in key markets of the Middle East, Africa and Asia.
• Current operating income -20% year-to-date and -19% in the quarter, driven by lower volumes and negative foreign exchange impact.
• EBITDA margin remained strong at 34.8% in the third quarter, stable with last year despite sharp volume declines.
• Pricing remained solid overall with a limited number of markets showing price declines.
• Strong impact of the cost reduction program in all regions.

Aggregates & Concrete

• Sales -20% year-to-date and -26% in the quarter.
• Current operating income -70% year-to-date and -55% in the quarter, reflecting the large presence in developed markets where volumes declined strongly.
• Due to seasonality and exposure to mature markets, the declines in results more heavily impacted the Group in Q3 compared to previous quarters.
• Continuing development of value-added concrete products.
• Pricing improved overall across all product lines, with benefits seen from value-added products.
• Strong impact of the cost reduction program in all regions.

Gypsum

• Sales -13% year-to-date and -11% in the quarter.
• Current operating income improved slightly compared to last year.
• Volume declines resulting from a general slowdown of housing construction in mature markets partially mitigated by some price improvement.
• Strong impact of the cost reduction program in all regions.

Investments and divestments

• Investments totaled €1,208 million year-to-date 2009, compared to €10,839 million in 2008.
  • Sustaining capital expenditure decreased by 64% to €199 million year-to-date.
  • Internal development capital expenditures declined by 20% to €926 million year-to-date.
• Since January 1st, Lafarge has announced total divestments of nearly €800 million. Cash received from disposals amounted to €588 million, compared to €342 million in 2008.

Additional information

Practical information:

There will be an analyst presentation at 9:00 local time at Lafarge Headquarters, 61 rue des Belles Feuilles, 75016 Paris. The presentation will be made in English with simultaneous French translation based on slides that can be downloaded from this website.

The presentation may be followed via a live web cast on the Lafarge website as well as via teleconference:
- Dial in number (France): +33 (0)1 70 99 42 80
- US dial in number: +1 212 444 0896
- International dial in number: +44 (0)20 7138 0843

Please note that in addition to the web cast replay, a conference call playback will be available from November 6, 2009 to November 16, 2009 online through this website or at the following numbers:
- France playback number: +33 (0)1 74 20 28 00 (code: 2562034#)
- US playback number: +1 347 366 9565 (code: 2562034#)
- International playback number: +44 (0)20 7111 124 (code: 2562034#)

Notes to editors

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With more than 84,000 employees in 79 countries, Lafarge posted sales of Euros 19 billion in 2008.
In 2009 and for the fifth year in a row, Lafarge was listed in the ‘Global 100 Most Sustainable Corporations in the World'. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its Internet website (www.lafarge.com). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.
More comprehensive information about Lafarge may be obtained on this website (www.lafarge.com), under Regulated Information.