General Presentation

Lafarge S.A. is a limited liability company incorporated in France and governed by French law (société anonyme). We produce and sell construction materials – cement, aggregates, concrete, gypsum wallboard, and related products – worldwide, primarily under the commercial name “Lafarge”. Based on sales, we are the world leader in construction materials. Our products are used for residential, commercial and public works construction projects throughout the world, in both new construction and renovation projects. Based on both internal and external analyses, we believe that Lafarge is co-leader of the cement industry, the largest producer of aggregates worldwide, the third largest producer of concrete worldwide and the third largest manufacturer of gypsum wallboard worldwide.

Our financial reporting currency is the euro (€). In fiscal year 2006, we generated 16.9 billion euros in sales and we earned current operating income (as defined in Section 4.1 (Overview – Definition)) of 2.8 billion euros and net income Groupe share of 1.4 billion euros. At year-end 2006, our assets totaled 29.8 billion euros. We currently employ approximately 71,000 people throughout the 70 countries in which we operate. Our shares have traded on the Paris stock exchange since 1923. They are a component of the French CAC-40 market index (and have been since its inception) and are included in the SBF 250 index and the Dow Jones Eurostoxx 50 index. Our shares also trade on the New York Stock Exchange (“NYSE”) under the symbol “LR” in the form of American Depositary Shares (“ADS”). Each ADS represents one-fourth of one share. Our market capitalization totaled 20.6 billion euros at the close of the market on March 21, 2007 including 0.5 billion euros attributable to our treasury shares.

Our Strategy

Our strategy aims to ensure Lafarge’s role as the leader in building materials, combining excellence, in both operating and financial performances, with growth – primarily organic – in our three Divisions: Cement, Aggregates & Concrete, and Gypsum.

In all our lines of business we combine a solid local presence, anchored in the regional and cultural specificities of our different markets, with the strengths of our global expertise – itself the fruit of our enormous industrial and marketing experience, which we have codified into good practices with universal values that are systematically deployed via performance programs, applicable everywhere we do business.

Locally as well as globally, we put into practice principles of action that have been carefully deliberated and considered over the years, principles that are constantly updated and which lie at the heart of the Group’s culture and identity. These principles, together with our drive for operating excellence, have led us to attach great importance to the safety of people – both employees as well as sub-contractors – in all of our activities.

Thanks to these strengths, we now have every chance of being recognized as the best creator of value by our shareholders, as the best supplier of products and services by our customers, as the best employer by our employees, and as the best partner by the communities within which we operate.

We can only realize our ambitions by avoiding dispersion: our priorities are the combined result of an impressive network of key positions in our main markets and of research and development efforts unparalleled in our sector. Today, our priorities are cement in the growing countries, which offer very strong development potential, and innovation – notably in concrete, a source of differentiation and leadership in pricing.

At Lafarge, we have focused on our core businesses, simplified our organization, accelerated the decision-making process, and launched an ambitious cost-cutting program. We are assured of especially strong growth through the organic development of our business portfolio, thus avoiding costly acquisitions. As a result, Lafarge is now positioned to take full advantage of its considerable potential, to further increase operating margins and to generate even more free cash flow, thus maximizing the satisfaction of its shareholders – which we measure by the growth of net earnings per share and the return on capital employed after tax. Our Group will continue to assume its role as natural leader – contributing at its own pace – to the consolidation movement that continues today in our different lines of business.

Lafarge S.A. was incorporated in 1884 under the name “J. et A. Pavin de Lafarge”. Our corporate existence continues through December 31, 2066, which may be extended pursuant to our by-laws. Our registered office is located at 61, rue des Belles Feuilles, 75116 Paris, France, and our telephone number is +33 1 44 34 11 11. We are registered under the number “542 105 572 RCS Paris” with the registrar of the Paris Commercial Court (Tribunal de commerce de Paris).

We began operations in the early 1800’s when Auguste Pavin de Lafarge founded a lime exploitation enterprise in France. Through steady acquisitions of lime and cement companies throughout France, we became France’s largest cement producer by the late 1930s. We first expanded internationally in the 1860’s when we supplied lime for construction of the Suez Canal. Our international expansion continued in the early twentieth century with new operations in North Africa and the United Kingdom

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