05042010 Publication Finance Shareholder Guide 2010 Uk

IND IV IDUAL SHAREHOLDER ’S GU IDE 2010 | Lafarge | pAGE 01

THE SHAREHOLDERS THE HEART

Of LAfARgE

LAFARGE SHAREHOLDER’SGUIDE 2010

04 Profil 05 Key figures

BUSINESSES OF LAFARGE IN 2009 09 Strategy 11 Cement 12 Aggregates & Concrete 13 Gypsum

BOARd OF dIRECtORS ANd ExECUtIvE COmmIttEE OF LAFARGE 16 Board of directors 17 Executive Committee

LAFARGE ON tHE StOCK mARKEt 20 Lafarge stock 23 Specific codes 24 Actions affecting the shares in the last 10 years

LAFARGE SHAREHOLdERS 28 Lafarge at your service 35 Share account 39 Buying or selling Lafarge shares 42 tax treatment

45 Useful information

The purpose of this guide is to provide information in summary form about topics of interest to any shareholder: about the Group, Lafarge stock, how to own shares, shareholders’ rights, etc.

It is intended to be a summary and might not answer all your questions.

For further information, we recommend that you visit our website at www.lafarge.com, or contact the Individual Shareholders’ Relations Department (details on p. 45).

toll free number, for calls from France only.


Dear shareholders,

I warmly thank you for your continuing trust in a difficult environment in 2009. Your support to the Group contributes to our development and represents a key factor of success.

In this challenging period, I attach a great deal of importance to your support and to the quality of our exchange. We are continuously trying to improve our communication tools and I hope you will find this guide useful.

Yours sincerely,

Bruno LafontChairman and Chief Executive Officer of Lafarge.

04 Profil 05 Key figures

BUSINESSES OF LAFARGE IN 2009 09 Strategy 11 Cement 12 Aggregates & Concrete 13 Gypsum

BOARd OF dIRECtORS ANd ExECUtIvE COmmIttEE OF LAFARGE 16 Board of directors 17 Executive Committee

LAFARGE ON tHE StOCK mARKEt 20 Lafarge stock 23 Specific codes 24 Actions affecting the shares in the last 10 years

LAFARGE SHAREHOLdERS 28 Lafarge at your service 35 Share account 39 Buying or selling Lafarge shares 42 tax treatment

45 Useful information

pAGE 04 | Lafarge | IND IV IDUAL SHAREHOLDER ’S GU IDE 2010

top-ranking positions in Cement, Aggregates & Concrete and Gypsum World leader in building materials, Lafarge is present in 78 countries with 78,000 employees working on more than 2,000 sites.

SALES IN 2009

15,884 million euros

% Western Europe 29.3 North America 19.1 Africa and Middle East 25.3 Central and Eastern Europe 6.6 Latin America 5.0 Asia 14.7

GROUP SALES BY GEOGRAPHIC AREA OF DESTINATION


(1) Excluding net capital gains on sale of Egypt-Titan JV in Q2 2008, the legal provision adjustment for the 2002 Gypsum case in Q2 2008, the impairment loss on goodwill in Q4 2008, the German cement case in Q2 2009, the settlement of the USG litigation in Q4 2009 and the impairment loss on some cement assets in the Western Europe region in Q4 2009.

(2) Earnings Per Share adjusted to reflect the rights issue completed on April 28, 2009 using a 1.1510 factor on the average number of shares for the periods prior to April 28. The adjusted average numbers of shares outstanding are: 222.4m for the period ended December 31, 2008, 265.5m for the period ended December 31, 2009.

(3) Defined as net operating cash generated by continuing operations less sustaining capital expenditures.(4) 2008 – Including Orascom Cement: €8,321 million.(5) Main disposals:

2008 - Lafarge Titan joint venture in Egypt, Aggregates & Concrete operations in Italy. 2009 - Turkish, Venezuelan and Chilean cement activities and some aggregates and concrete assets located in East Canada.

(6) Using the effective tax rate, excluding the impact of impairment losses in 2008.

2008 (1) %2009

Million euros AS AT DECEmBER 31ST CHANGE

Sales 15,884 19,033 -17%

Current operating income 2,477 3,542 -30%

Operating margin (in %) 15.6 18.6 -300 pb

Income Group share 736 1,598

Excluding on-off items (1) 829 1,713 -52%

Earnings per share (in euros) (2) 2.77 7.19

Excluding on-off items (1) (2) 3.12 7.70 -59%

KEY FIGURES

FREE CASH FLOW (3)

2009 €2,834 m

2008 €2,113 m

INVESTmENTS (4)

2009 €1,719 m

2008 €12,067 m

DISPOSALS (5)

2009 €919 m

2008 €763 m

SHAREHOLDERS’ EQUITY

€16,800 m

€14,635 m

NET DEBT

€13,795 m

€16,884 m

RETURN ON CAPITAL EmPLOYED AFTER TAx (6)

6.0%

8.8%

pAGE 6 | Lafarge | LE GU IDE DE L ’Act IONNA IRE IND IV IDUEL 2008


09 StRAtEGy

11 CEmENt

12 AGGREGAtES & CONCREtE

13 GyPSUm

Businesses of Lafarge in 2009

ARcOS pLANBrazil.



Strategy Growth Strategy, focused on:

StRAtEGIc pRIORItIES

3 cement, notably in fast-growing markets • Demographic trends and needs for infrastructure in developing markets will drive demand for building materials. • At the end of 2009, 70% of current cement capacity already positioned to capture emerging market growth. 3 Innovation, especially in concrete • Accelerate the launch of innovative high added value products

(Sensium®, ChronoliaTM, SyniaTM, ExtensiaTM, Ductal®, Agilia®, Thermedia®). • Use the Group’s unique know-how in R&D to develop new solutions for sustainable construction.

SAfEty DAy At tHE fERRyBRIDGE pLAStERBOARD pLANtUnited Kingdom.

OpERAtIONAL pRIORItIES

3 Health and safety • In 2009, we managed to reduce by 35% the number of work-place accidents resulting in sick leave,

demonstrates our commitment to achieving results in this area. • Establishment of a comprehensive Group-wide occupational health program in 2010.

3 cost reduction • A €400 m cost reduction plan has been announced end of 2008 for the period from 2009 to 2011

out of which €230 m has been achieved in 2009, versus €200 m announced initially. • 2010: €200 m target of structural cost savings.

3 Sustainable development • Preservation of the environment and combating climate change. • Partnership with local communities for a long term development.

3 Developing the potential of the men and women in the Group • Training courses policy maintained and reinforced at every level. • Initiatives to promote diversity.

Group objective: «zero» accident

In 2009, the Group exceeds its target to reduce its global cO2 emissions by 20% between 1990 and 2010

World cement consumption: +5% per year over the last 20 years

More than 50% of R&D resources devoted to the sustai-nable construction


OtAVALO cEMENt pLANtEcuador.

2009 A group focused on strong cash generation and debt reduction in a difficult environment

ExcEEDED 2009 ActION pLAN tO StRENGtHEN fINANcIAL StRUctURE:3 Cost reduction above the €200 m commitment, achieving €230 m in structural savings

3 Capital expenditure reduced by over €1 bn at €1.6 bn

3 €919 m divestments

3 Working capital reduced by more than €1 bn

NEt DEBt -18%3 €13,795 m

fREE cASH fLOW +34%3 €2,834 m


SALES BY GEOGRAPHIC AREA OF DESTINATION

% Western Europe 21 Central and Eastern Europe 8 Africa and Middle East 35 North America 12 Latin America 6 Asia 18

SALES in million euros

9,477NUMBER Of pLANtS

160

NUMBER Of EMpLOyEES

46,468pRESENt IN

48 countries

ActIVItIESLines of cement, hydraulic binders and lime for construction, renovation and public works.

OtAVALO cEMENt pLANt, qUARRyEcuador.

cement World leader


SIMpANG pULAI qUARRyMalaysia.



5,064NUmBER OF PLANTS

1,773

NUmBER OF EmPLOYEES

23,552PRESENT IN

36 countries

ActIVItIESLines of aggregates, ready-mix and precast concrete products, asphalt and paving for engineering structures, roads and buildings.

Aggregates & concrete N° 2 & N° 3 worldwide

% Western Europe 40 North America 36 Energing markets 24


pALAtkA pLAStERBOARD pLANt IN fLORIDANorth America.

NUmBER OF EmPLOYEES

23,552PRESENT IN

36 countries


Gypsum N° 3 worldwideActIVItIESPlasterboard systems and gypsum-based interior solutionsfor new construction andrenovation.


1,334NUmBER OF PLANTS

80

NUmBER OF EmPLOYEES

7,974PRESENT IN

30 countries

% Western Europe 50 North America 15 Asia 11 Other countries 24



16 BOARd OF dIRECtORS

17 ExECUtIvE COmmIttEE

Board of directors and Executive Committeeof Lafarge

MILLAU VIADUcFrance.


Board of directors

1 Bernard kasriel*

2 pierre de Lafarge

3 thierry de Rudder

4 Oscar fanjul

5 Michel Bon

6 philippe Dauman

7 Bertrand collomb

8 Gérald frère

9 Juan Gallardo

10 Bruno Lafont

11 Jean-pierre Boisivon*

12 Hélène ploix

13 philippe charrier

14 paul Desmarais Jr

15 Jérôme Guiraud

16 Nassef Sawiris

17 Michel Rollier

18 Michel pébereau

* Termination of the position after the General Meeting called to approve the financial statements for 2009.

1 2 4 6 10 12 14 16 17 18

3 5 7 8 9 11 13 15


Executive Committee

1 Jean-carlos AnguloExecutive Vice-President,Co-President of the Cement Business

2 thomas farrellExecutive Vice-President,Co-President of the Aggregates& Concrete Business

3 Eric OlsenExecutive Vice-President,Organization and HumanResources

4 Guillaume RouxExecutive Vice-President,Co-President of the Cement Business.

5 Bruno LafontChairman and Chief Executive Officer

6 Jean Desazars de MontgailhardExecutive Vice-President,Strategy, Development and Public Affairs

7 Sara RavellaDirector of Communications

8 christian HerraultExecutive Vice-President,President of the GypsumBusiness

9 Isidoro MirandaExecutive Vice-President,Co-President of the Cement Business

10 Gérard kuperfarbExecutive Vice-President,Co-President of the Aggregates& Concrete Business

11 Jean-Jacques GauthierExecutive Vice-President,Co-President of the Cement Business

1 2 3 4 5 6 7 8 9 10 11



GREEN pOINt 2010 WORLD cUp StADIUM IN cApE tOWNSouth-Africa.

20 LAFARGE StOCK

23 SPECIFIC COdES

24 ACtIONS AFFECtING tHE SHARES IN tHE LASt 10 yEARS

Lafarge on the stock market

pAGE 20 | IND IV IDUAL SHAREHOLDER ’S GU IDE 2010

Lafarge stock

As at December 31st, 2009, the capital stock of Lafarge was divided into 286,453,316 shares, with a par value of 4 euros each.

Lafarge stock market listingISIN code I FR0000120537EpIc code I LGWhere listed I NYSE Euronext (Paris)Indice I CAC 40Ethical indices I FTSE4Good Monde, FTSE4Good EuropeStock market capitalization on April 12, 2010 I 15,4 billion euros

It is only necessary to own one share to be a shareholder and enjoy all the rights afforded to shareholders by law and by the company’s bylaws.Shares are not represented by a document but are recorded by being entered in an account in your name, either with a financial intermediary or with Lafarge.Lafarge stock is eligible for Deferred Settlement Service (SRD).

WHAt IS A SHARE?A share is a negotiableinstrument representinga portion of the company’s capital stock.

WHAt IS tHE DEfERRED SEttLEMENt SERVIcE (SRD)?This service, for which a charge is made, enables the settlement of transactions to be deferred to the end of the stock market month (payment for orders or delivery of shares).

WHAt IS AN AMERIcAN DEpOSItARy REcEIpt (ADR)?An ADR is a US negotiable certificate of deposit, representing one or more shares of a non-US company listed.

LAFARGE ON tHE StOck MARkEt

In September 2007, we voluntarily delisted our shares from the New York Stock Exchange but have maintained our American Depositary Receipts (“ADRs”) program, our ADRs now being traded on the Over-the-Counter market (“level one” program). Each ADR represents a quarter of a share.

mORE INFORmATIONabout ownership of shares page 36 onwards


cHANGE BEtWEEN JANUARy 1st, 2006 AND ApRIL 12, 2010:3 LAfARGE SHARE pRIcE I -18.9%3 cAc 40 I -14.8%

Highest closing price of Lafarge shares: 119.20 euros (07/03/07)Lowest closing price of Lafarge shares: 26.06 euros (03/09/09)

the Lafarge share price since January 2006 (basis 100)

In euros 2008 2007 2006 2005 2009

StOck MARkEt DAtA OVER LASt 5 yEARS

on December 31st (closing price) 57.81 37.66 108.16 97.91 66.03

Annual change in share price +53.5% -65.2% +10.5% +48.3% +7.0%

Annual change in CAC 40 +22.3% -42.7% +1.3% +17.5% +23.4%

Session (in euros)

High 66.59 108.99 119.20 99.91 70.72

Low 26.06 27.91 86.45 63.90 57.12

04/12/10

3 LAFARGE €53.88

3 CAC 40 4,050.50

02/01/06

3 LAFARGE €66.46

3 CAC 40 4,754.92

Source JCF 5.0

20

40

60

80

100

120

140

160

180

Lafarge

CAC 40

Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 Apr-10

Note: share prices for periods prior to the April 2009 rights issue have been adjusted using the coefficient publishedby Euronext. Changes are calculated on this adjusted basis.

distribution of capital

At December 31st, 2009, we had 254,000 shareholders reflecting the Group’s international dimension.



DISTRIBUTION BY TYPE OF SHAREHOLDER

% Individual shareholders 10.2 * Treasury shares 0.1 French institutional shareholders 19.4 Non-French institutional shareholders 70.3

GEOGRAPHICAL DISTRIBUTION ON DECEmBER 31ST, 2009

% France 29.6 United States of America 16.0 Belgium 21.9 United-Kingdom 5.0 Luxembourg 14.2 Rest of the world 13.3

* Including 1.70% of the share capital held by Group employees

Specific codes

SpEcIfIc cODES 2010

Date of registration Specific code Entitlement toloyalty dividend in

No later than December 31st, 2007 FR0000066946 2010

Between January 1st and December 31st, 2008

FR0010689547 2011

Between January 1st and December 31st, 2009

FR0010827691 2012


The introduction of the loyalty dividend required the introduction of specific codes to determine which shares were entitled to the ordinary and loyalty dividend each year. These specific codes only apply to registered shares, because bearer shares are not entitled to the loyalty dividend.

Regardless of their specific code, all the shares are listed on NYSE Euronext (Paris) under the ISIN code FR0000120537.

Note: Code FR0010834051 applies to shares arising from the exercise of options between January 1st, 2010 and the dividend detachment date (July 1st, 2010), with entitlement to dividends from January 1st, 2010. These shares will be listed under the code FR0000120537 after the dividend detachment date.

mORE INFORmATIONabout the loyalty dividend page 34



Actions affecting the shares in the last 10 years NEt DIVIDEND

AmOUNT PER SHARE

FOR THE FISCAL YEAR

NORmALDIVIDEND

LOYALTYDIVIDEND

REINVESTmENT AT PRICE OF

2000 2.20 euros 2.42 euros 95.71 euros





2005 2.55 euros 2.80 euros -

20063.00 euros

payablein cash

3.30 eurospayablein cash

-

20074.00 euros

payable in cash

4.40 eurospayable in cash

-

20082.00 euros

payablein cash

2.20 eurospayablein cash

-

20092.00 euros*

payable in cash

2.20 euros*payable in cash

-

* Submitted to the approval of the General Meeting called to approve the financial statements for 2009.

mORE INFORmATIONon the dividend for 2009 page 34


February 17, 2000Issue of 23,332,344 ORANE (bonds repayable in shares or in cash), with attached warrants, with a preferential subscription right for the benefit of shareholders, between February 17 and March 1st, 2000.Each old share carried one preferential subscription right, and 9 preferential subscription rights entitled the holder to subscribe for 2 ORANE + 2 warrants at a price of 74 euros each.The ORANE were repaid on May 24, 2000 at the price of 74.72 euros each.The warrants could be exercised at the rate of: • 4 warrants for 1 share at a price of 74 euros, until January 29, 2001, • 4 BSA for 1.024 shares at a price of 74 euros from February 9, to March 20, 2001.

January 22, 2001Issue with a Preferential Subscription Right for Shareholders of 14,110,592 new shares subscribed at the rate of 1 new share for 8 old shares, at the price of 80 euros per share.Subscription period from January 22 to February 2, 2001 inclusive.

march 30, 2001Issue of 5,861,951 shares through the exercise of warrants, between March 20, 2000 and March 20, 2001.

July 15, 2003Issue with a Preferential Subscription Right for Shareholders of 31,831,528 new shares subscribedat the rate of 4 new shares for 17 old shares, at the price of 41 euros per share. Subscription period from June 19 to July 2, 2003, inclusive.

April 28, 2009Issue with a Preferential Subscription Right for Shareholders of 90,109,164 new shares subscribed at the rate of 6 new shares for 13 old shares, at the price of 16.65 euros per share.Subscription period from April 2 to April 15, 2009, inclusive.



Lafarge shareholders

28 LAFARGE At yOUR SERvICE

35 SHARE ACCOUNt

39 BUyING ANd SELLING LAFARGE SHARES

42 tAx tREAtmENt

BEIJING NAtIONAL cENtRE fOR tHE pERfORMING ARtSChina


LAFARGE SHAREHOLDERS

Publications3 Financial notices in the financial and economic press3 Press releases, which can be consulted on our website,

www.lafarge.com.3 Notices in the Bulletin des Annonces Légales et Obligatoires (BALO),

which can be downloaded from the website http://balo.journal-officiel.gouv.fr

Lafarge at your service

To deepen your knowledge of the Group, Lafarge provides you with a series of tools.

Une flexibilité financière rétablieForte génération de cash flow libreUn portefeuille optimal pour bénéficier de la croissance des pays émergents

Résultats annuels 2009

Face au ralentissement économique mondial, la performance opérationnelle du Groupe et son portefeuille géographique bien orienté sur les pays émergents, nous ont permis de tenir les engagements de notre plan d’actions de réduction de la dette sans renoncer à notre stratégie de croissance.

Lafarge démontre sa réactivité et sa solidité.L’année 2009 a été marquée par des baisses de volumes sans précédent dans les pays mûrs. Notre portefeuille géographique bien orienté sur les marchés émergents a atténué l’impact de ces baisses de volumes sur nos résultats. L’excellente mobilisation opérationnelle autour de la génération de cash flow a préservé nos marges, qui restent à des niveaux élevés.

Dans un environnement dégradé, Lafarge a tenu ses engagements et rétabli sa flexibilité financière en réduisant l’endettement net du Groupe de 3,1 Mds .

En 2010, nous continuerons à renforcer notre structure financière, en réduisant encore nos coûts structurels et en contrôlant strictement nos investissements.

Nos positions géographiques sont idéales pour capter les besoins croissants des pays émergents.Nos innovations apportent des solutions concrètes pour l’amélioration de l’efficacité énergétique des bâtiments et contribuent ainsi à réduire l’empreinte carbone. Elles répondent à des besoins croissants dans les pays développés et créent de nouveaux marchés dans les pays émergents.

Lafarge a un potentiel de rebond considérable pour saisir toute croissance dans une année 2010 de reprise progressive.

> Chiffre d’affaires

15 884 M- 17 %

> Résultat d’exploitation courant

2 477 M- 30 %

> Cash Flow libre

2 834 M+ 34 %

> Réduction de la dette nette de

3,1 Mds> Dividende par action*

2 * soumis à l’approbation de

l’Assemblée générale du 6 mai 2010

Prochains rendez-vouser trimestre : 5 mai 2010

Leader mondial des matériaux de constructionCiment, Béton, Granulats, Plâtre

Retrouvez l’intégralité du communiqué de presseet tous les rendez-vous actionnaires sur www.lafarge.com

LAFARGE_RESULT2009_JDF.indd 1 19/02/10 15:57:08

mORE INFORmATIONabout these documents 3 www.lafarge.com

mORE INFORmATIONon the diary of events for shareholders in 20103 www.lafarge.com3 Individual Shareholders’ Relations Department


A panel of documents

lettre auxactionnaires

Mars 2010

AU SOMMAIRE

Pages 2-3

L’actualitédu Groupe

Pages 4-6

Lafarge en Chine

Page 7

La vie du Club des actionnaires

Page 8

Au service de nos actionnaires

Clubdes actionnaires

Comment le Groupe Lafarge s’est-il com-porté dans la tourmente de l’année 2009 ?

Pour résister dans un environnement très difficile, il était essentiel que le Groupe fasse la preuve de sa capacité de réaction. Effectivement, le fort ralentissement économique dans les pays développés a pesé sur nos volumes, avec une baisse de l’ordre de 25 % en Amérique du Nord et en Europe. Heureusement, nous avons bénéficié d’une croissance soutenue dans la plupart des pays émergents - hormis en Europe Centrale et Orientale.L’excellente mobilisation opérationnelle du Groupe autour de la génération de cash flow et de la défense de nos marges nous a permis de dégager un cash flow libre en forte hausse malgré le net repli des volumes.

Qu’en est-il de l’endettement du Groupe ?

Nous avons tenu nos engagements et rétabli notre flexibilité financière en réduisant considérablement la dette nette du Groupe. Notre programme de désinvestissements a été réalisé, notre refinancement s’est fait dans de très bonnes conditions, nous avons réduit nos coûts et nos investissements, ainsi que notre besoin en fonds de roulement. Nous avons donc délivré notre plan d’action dans un environnement plus dégradé qu’au moment de son annonce en février 2009. C’est une belle performance que nous devons à des équipes engagées et solidaires, où qu’elles soient dans le monde.

Suite page 2

Malgré le très fort ralentissement économique et la baisse des volumes, le Groupe a tenu ses engagements de réduction de la dette sans mettre en péril sa stratégie de croissance future. Retour sur une année de défis avec Bruno Lafont, Président-Directeur général du Groupe.

Rencontre avec Bruno Lafont,Président-Directeur général

3 The letter to shareholders (only in french)

THE SHAREHOLDERS THE HEART

OF LAFARGE

LAFARGE SHAREHOLDER’SGUIDE 2010

3 The individual shareholder’s guide

3 The facts and figures brochure

3 Crescendo, the Group’s half-yearly review

3 The institutional brochure

ANNUAL REPORT

Document de Référence

2009

PARTNER OF THE FRANCE PAVILION FOR THE SHANGHAI 2010 EXPO

3 The annual report & reference document

www.lafarge.com

Contacts

Awards granted by trade associationsAWARD OF EXCELLENCE

COMMITMENT TO ENVIRONMENTAL EXCELLENCE

ENVIRONMENTAL EXCELLENCE AWARDAWARD FOR EXCELLENCE BRONZE MEDAL

LEVEL 4BRITISH PRECAST SUSTAINABILITY

CHAMPION AWARD 2 AWARDS BEST QUARRY RESTORATION PROJECTS

COLORADO RECLAMATION SAFETY AWARDSJACK STARNER MEMORIAL RECLAMATION AWARD

RANKED A+ LABEL ARGENT TOP OF THE 75 FRENCH SITES EVALUATED AND IN THIRD PLACE AMONG THE SECTOR ‘CONSTRUCTION & MATERIALS’ WEBSITES GLOBAL

RENEWABLE ENERGY AWARDS 2009GLOBAL 100 MOST SUSTAINABLE CORPORATIONS

Awards granted by third partiesEMERALD AWARD

2 GOLD MEDALS FOR LAFARGE CEMENT FRANCEMANAGEMENT AWARD FOR SUSTAINABLE

DEVELOPMENT BEST IN ENVIRONMENTAL IMPROVEMENT PRACTICES CATEGORY AND 1 RUNNER-UP IN THE

OVERALL COMPANY OF THE YEAR KOREA GREEN ENERGY AWARD

PHILIPPINE MINERAL INDUSTRY ENVIRONMENTAL AWARDSGREEN OFFICE CERTIFICATE

2 SUSTAINABLE DEVELOPMENT NATIONAL PRIZE

WATER SAVE AWARDCHIEF EXECUTIVE’S AWARD

AWARD SCHEME INTERNATIONAL RECOGNITION FOR CONTRIBUTIONS TO WILDLIFE HABITAT CONSERVATION

LAFARGE HERACLES IN THE TOP 10 OF THE LEADING CSR REPORTERS VICTORIAN ENGINEERING EXCELLENCE AWARDS LAFARGE HERACLES

AMONG THE TOP 10 IN THE ACCOUNTABILITY RATING IN GREECEBEST CORPORATE AWARD

GOLDEN MERCURYINNOVATION AWARD

HOPE WORKS RAIL PROJECT BES 6001 RESPONSIBLE SOURCING CERTIFICATE SILVER PARTNER AWARD

NATIONAL DIAMOND ACHIEVEMENT COMMENDATION FOR EXCELLENCE 10 AWARDS IN 11

DIFFERENT CATEGORIES BEST TRAINING OFFER IN CHINACSR EXCELLENCE AWARD FOR

OCCUPATIONAL HEALTH & SAFETY EXCELLENCE AWARD IN HEALTH AND SAFETY MANNY AWARDS BEST PLACE TO

WORK AWARDCOMMUNITY RELATION AWARD

Lafarge received more than 50 sustainability awards in 2009

sustainability report

http://sustainabilityreport.lafarge.com

3� The substainability report


dedicated tools and team3 The Individual Shareholders’ Relations Department, at your service for

any question or request for documentation.3 The shareholders’ information area on our website, www.lafarge.com

meetings to discuss matters with you

3 The General Meeting3 Information meetings (on average 4 per year)3 Actionaria exhibition in November in Paris (stand and meeting)

FRANCK BICHOT Manager Individual Investor Relations

DALILA TOUNSI Assistant Individual Investor Relations

CONTACT3 phone

(toll free number, for calls from France only)

3 e-mail : [email protected]

3 site Internet : www.lafarge.com

3 address : LAFARGE Individual Shareholders’ Relations Department 61, rue des Belles-Feuilles BP 40 75782 Paris Cedex 16 France



Consultation prior to the General meetingAvailable on our website, the consultation enables shareholders to express their expectations (subjects they would like to be discussed, questions they would like to ask during the Meeting, etc.).


Role

The individual shareholders’ consultative committee was created in 1995.It is designed to:3 improve the Group’s financial communica-tions with individual shareholders,3 engage with shareholders and be attentive to their expectations,3 inform and educate individual sharehol-ders.

composition and operation

The shareholders’ consultative committee is made up of 12 people reflecting the compo-sition of our private shareholder base:3 11 members, individual shareholder,3 1 position is reserved for a representative of the individual shareholders’ association.The term of office for members is 4 years. A member of CCAI is authorized to make several non-successive mandates. Calls for application are launched in the letter to share-holders.

The committee meets an average of 3 times a year (2 plenary session with the Chairman and CEO and 1 site visit).

the shareholders’ consultative committee

LISt Of tHE MEMBERS

3 Daniel Bouchacourt (Val-de-Marne),

3 Thierry Bunel (Aisne),

3 Laurent Coupier (Bouches-du-Rhône),

3 Richard Deschamps (Rhône),

3 Anne Doris Dupuy (Gironde),

3 Vincent Gaffiot (Yonne),

3 Michel Gouy (Nord),

3 Claude Haroche (Paris),

3 Didier de Lavergnolle (Paris),

3 Hugues Mitton (Paris),

3 Yves Rambaud (Yvelines),

3 Chantal Thiebaut (Meurthe-et-Moselle).


LAFARGE SHAREHOLDER

WHAt DIffERENt kINDS Of GENERAL MEEtING ARE tHERE?

3 Ordinary General meetings take place within six months of the end of the fiscal year, and entail a report from the Board of Directors on its management of the company during the previous year. It approves the financial statements for the fiscal year, appoints and renews directors and auditors, and fixes the amount of the dividend and the manner in which it will be paid.

3 Extraordinary General meetings can be convened at any time, and have powers to make amendments to the bylaws and make deci-sions about the issue of negotiable securities other than ordinary bonds.

3 Combined General meetings conducts ordinary and extraordinary business on the same date and are convened by a single notice of meeting.

You are reminded that it is not necessary to block your shares to vote on resolutions at Lafarge General Meetings.

Documents relating to General Meetings

If your shares are registered, or if you own at least 200 bearer shares, full documentation enabling you to take part in General Meetings will be sent to you automatically.

If you have less than 200 bearer shares, you can take part in General Meetings by asking your account holder for the meeting documentation.

Any Lafarge shareholder, who proves his or her status before 3 days in advance of the date of the Meeting, has the right to vote at the General Meeting. Shareholders can vote:3 by attending the Meeting, 3 by post, 3 by giving a proxy to their spouse or to another Shareholder, 3 or by giving a proxy to the Chairman.

Participate and vote at the General meeting

mORE INFORmATION on Lafarge General meetings (notices of meetings, etc.)3 www.lafarge.com3 Individual Shareholders’ Relations Department


The Annual General Meeting decides to distribute dividends to shareholders.

the loyalty dividend

Since 1999, Lafarge shares which have been registered for at least two years (either in a direct or administered registered account) receive a dividend bonus of 10%.The period of two years which enables a share-holder to benefit from this loyalty dividend is calculated from January 1st of the year following the year of registration of the shares in a registered account. The number of shares giving entitlement to such increase held by any one shareholder cannot exceed 0.5% of the total share capital at the relevant financial year time. The loyalty divi-dend is sometimes referred to as a “prime de fidélité” (PF).

Receive dividends

WHAt IS A DIVIDEND?

Dividends are variable income, the amount of which depends on the profits made by the company. They represent the portion of the profits that the Annual General Meeting decides to distribute to share-holders. The remainder is put in reserve to increase the company’s equity and provide financing for its development. In order for a dividend to be paid, share-holders adopt a resolution at the Ordinary General Meeting called to approve the financial statements for the previous fiscal year.

ON WHAt DAtE DO yOU HAVE tO OWN SHARES tO BE ENtItLED tO tHE DIVIDEND?

You must be the owner of your shares on the day before the dividend detachment date(exception are possible notably in case of rights issue).

Dividends paid during the last three fiscal years

Dividend for 2009:3 payment in cash, 3 ex-dividend date: July 1, 20010,3 payment date: July 6, 20010.

Euros

For the fiscal year

Net dividend

2007 Normal dividend

4.00

Loyaltydividend

4.40


2.00

Loyaltydividend

2.20


2.00*

Loyaltydividend

2.20*

Participate in transactions affecting the capital

Such rights can be in one of two forms:3 a preferential subscription right, when the company goes into the market to increase its share capital in cash,3 an allotment right, when the company increases the share capital by the incorporation of reserves. It can then create new shares and allot them to its shareholders free of charge.

* Submitted to the approval of the General Meeting called to approve the financial statements for 2009.



the characteristics of the various share accounts

En Euros Direct registered account Administered registered account Bearer account

Account management BNP Paribas Securities Services appointed by Lafarge Bank or stockbroker

Registered shares in a share savings scheme

Administered registered accounts are recommended rather than direct registered accounts

Notices of General Meetings Sent automatically to the shareholders Sent automatically by the bank or stockbroker to shareholders with 200 shares or more

Admission to General Meetings Upon presentation of the admission letter or of identification Upon presentation of the admission letter issued on the basis of a certificate of holdings

Participation in General Meetings Any Lafarge shareholder, who proves his or her status before 3 days in advance of the date of the Meeting, has the right to vote at the General Meeting.

Voting rights(1) Double voting rights allocated to any share owned in registered form for at least two years (from date to date) One voting right per share

Dividends(1) Dividend increased by 10% for any share owned in registered form for at least two years(2) No loyalty dividend

Letters to shareholders Sent automatically to the shareholders Sent on request

Custodians’ fees Paid by Lafarge Paid by the shareholder

Variable fees depending on the bank or stockbroker

Purchases/sales Orders(3) placed:• directly via the internet, on the GISnomi website(4) (https:gisnomi.bnpparibas.com)• or by letter, fax or telephone(5) to BNP Paribas Securities ServicesThe shareholder himself calculates any gains realized

Orders placed with the bank or stockbroker

Certain banks and stock market companies manage the gainsrealized

Fees on purchases/sales • Brokerage commission: 0.30% exc. VAT(6) of the grossamount (without any minimum or maximum)• Bank commission: 7.62 euros exc. VAT(6)

Variable depending on the bank or stockbroker

the different kinds of share account

There are three kinds of share account:3 bearer accounts. These are opened with your usual bank or stockbroker,3 administered registered accounts. If you have expressly requested that your shares be registered. These accounts are opened with your usual bank or stockbroker,3 direct registered accounts. If you have expressly requested that your shares be direct registered. These accounts are opened

with BNP Paribas Securities Services (contact details on p. 45), appointed by Lafarge to manage direct registered accounts.

Share account


the characteristics of the various share accounts

En Euros Direct registered account Administered registered account Bearer account

Account management BNP Paribas Securities Services appointed by Lafarge Bank or stockbroker

Registered shares in a share savings scheme

Administered registered accounts are recommended rather than direct registered accounts

Notices of General Meetings Sent automatically to the shareholders Sent automatically by the bank or stockbroker to shareholders with 200 shares or more

Admission to General Meetings Upon presentation of the admission letter or of identification Upon presentation of the admission letter issued on the basis of a certificate of holdings

Participation in General Meetings Any Lafarge shareholder, who proves his or her status before 3 days in advance of the date of the Meeting, has the right to vote at the General Meeting.

Voting rights(1) Double voting rights allocated to any share owned in registered form for at least two years (from date to date) One voting right per share

Dividends(1) Dividend increased by 10% for any share owned in registered form for at least two years(2) No loyalty dividend

Letters to shareholders Sent automatically to the shareholders Sent on request

Custodians’ fees Paid by Lafarge Paid by the shareholder

Variable fees depending on the bank or stockbroker

Purchases/sales Orders(3) placed:• directly via the internet, on the GISnomi website(4) (https:gisnomi.bnpparibas.com)• or by letter, fax or telephone(5) to BNP Paribas Securities ServicesThe shareholder himself calculates any gains realized

Orders placed with the bank or stockbroker

Certain banks and stock market companies manage the gainsrealized

Fees on purchases/sales • Brokerage commission: 0.30% exc. VAT(6) of the grossamount (without any minimum or maximum)• Bank commission: 7.62 euros exc. VAT(6)

Variable depending on the bank or stockbroker

(1) In the event of the inheritance or gift of shares, double voting rights attached to shares registered for more than two years in the name of the same shareholder will be maintained for the heirs or beneficiaries of the gift (right holders having a family relationship with the deceased or donor sufficient to entitle them under an intestacy), on condition that the shares continue to be held in a registered account. In the event of the inheritance, loyalty dividends attached to shares registered for more than two years in the name of the same shareholder will be main-tained for their heirs (right holders having a family relationship with the deceased sufficient to entitle them under an intestacy), on condition that the shares continue to be held in a registered account.

(2) The period of two years runs with effect from January 1st in the year following the year in which the shares were registered. The number of shares giving entitlement to such increases held by any one shareholder cannot exceed 0.5% of the total share capital at the relevant financial year time.

(3) In order for your orders to be processed, BNP Paribas Securities Services must first have received your stock exchange service agreement, duly completed and signed.

(4) Excluding legal persons, minors or persons under a disability.

(5) For orders placed by fax or telephone, you must send a letter of confirmation to BNP Paribas Securities Services within 48 hours.

(6) As required by law, VAT is charged to French and European Union residents at the rate of 19.60%, and to residents of French overseas territories at the rate of 8.50%. No VAT is charged to residents of Guyana or other non-residents.



Standard letters for share registration

To be sent to your bank to request the registration of your shares in an administered registered account

Forename(s)SurnameAddressShare account references Addressee Bank AddressDate

Re: Registration of my Lafarge shares in an administered registered account

Dear Sir/Madam,

Upon receipt of this letter, could you please register the XX Lafarge shares that I hold in the above-mentioned share account, in an administered registered account to be opened in my name at your branch. Since this registration will entitle me to the loyalty dividend offered by Lafarge, it must be effective by no later than December 31st, 20XX.

Yours truly.

Signature


If yOU HOLD SHARES IN A SHARE SAVINGS ScHEME, ADMINIStERED REGIStERED AccOUNtS ARE REcOMMENDED RAtHER tHAN DIREct REGIStERED AccOUNtS.

To be sent to your bank to request the registration of your shares in a direct registered account

Forename(s) SurnameAddressShare account references Addressee Bank AddressDate

Re: Transfer of my Lafarge shares into a direct registered account

Dear Sir/Madam,

Upon receipt of this letter, could you please transfer the XX Lafarge shares that I hold in the above-mentioned share account, to BNP Paribas Securities Services, in order for them to be registered in a direct registered account. Since this transfer will entitle me to the loyalty dividend offered by Lafarge, I should be grateful if you would ensure that my shares are effectively transferred to: BNP Paribas Securities Services

GCT Services aux Emetteurs Services relations actionnaires Lafarge Grands Moulins de Pantin 9 rue du Débarcadère - 93761 Pantin Cedex - France

Before December 31st, 20XX.

Yours truly.

Signature

mORE INFORmATION download these standard letters on 3 www.lafarge.com



Buying or selling shares

your shares are bearer shares or are in an administered registered account

You must place your order with your bank or stockbroker.

your shares are in a direct registered account

Via the internet*On the GISnomi website (https:/gisnomi.bnpparibas.com). Your confidential access codes will be sent to you by BNP Paribas Securities Services after your shares are registered in a direct registered account.

*Excludes legal persons, minors or persons under a disability.

By letter, fax or telephoneAddressed to BNP Paribas Securities Services. In the case of orders placed by fax or telephone, you must send a letter of confirmation to BNP Paribas Securities Services within 48 hours.

IN ORDER fOR yOUR ORDERS tO BE pROcESSED (WHIcHEVER MEtHOD IS USED), BNp pARIBAS SEcURItIES SERVIcES MUSt fIRSt HAVE REcEIVED yOUR StOck ExcHANGE SERVIcE AGREEMENt, DULy cOMpLEtED AND SIGNED.


Information your order must contain

In order to be processed, your order must be clear and must provide certain information:3 the name and ISIN code of the shares to be traded,3 the type of transaction (purchase, sale),3 the quantity of shares to be traded,3 the execution price,3 the duration of the order (no later than the end of the month).

the transfer of shares upon inheritance

If your shares are held in a direct registered account, they may be transferred into the name of your heir or heirs upon a request made by letter by the notary handling the estate, to BNP Paribas Securities Services, stating the names of the heirs and the number of shares to which each is entitled. The heirs may request that the shares be registered in their name, in a direct registered account, or that they be transferred into the share account held by their financial intermediary, either in bearer form or in an administered registered account.

WHAt ARE tHE MOSt cOMMON StOck MARkEt ORDERS?

3 “limit” order indicates that you do not want to pay more than the stated price, if you are a buyer, and that you do not want to sell below that price, if you are a seller. They allow you to be protected against market fluctuations, but involve a risk of non-execution.

3 order “at best” contains no indication of a price, and will be executed at the price determined by the order book. They may be only partially filled. Any surplus is treated as a “limit” order. This type of order is useful for very liquid shares that one wishes to buy or sell quickly.

3 “market” order contains no indication of a price and can only be completely filled (i.e. these orders cannot be split). In exchange, these orders take priority over other types of orders. They are used to trade securities in very liquid markets. The person placing the order is sure of buying or selling the securities, but takes a risk as to the price of execution.



Lafarge offers an advantage to its registered shareholders (whether direct or administered): the right to the loyalty dividend is transferred to heirs* on condition that the shares continue to be held in a registered account.

If your shares are held in an administered account or as bearer shares, you must take the same steps as regards the bank or stockbroker responsible for the management of your shares.

transfer of shares by gift

If your shares are held in a direct registered account, all that is required is for you to write to BNP Paribas Securities Services asking them to transfer the shares to the share account of the beneficiary of the gift. This share account may be a direct registered account opened by BNP Paribas Securities Services in the name of the beneficiary, or any other share account opened with a bank or stockbroker.

The letter must also be signed by the beneficiary.

If your shares are held in an administered account or as bearer shares, you must take the same steps as regards the bank or stockbroker responsible for the management of your shares.

The right to loyalty dividend is transmitted only to heirs as part of an estate. In case of shares donation, the right to loyalty dividend is not transmitted.

*Right holders having a family relationship with the deceased sufficient to entitle them under an intestacy.

mORE INFORmATIONS contact your regular tax adviser


tax treatment*

tax applicable to dividends

For 2009 income (tax declaration completed in 2010)For dividends received as from January 1st, 2009, it is possible to choose between two tax regimes.

The first provides for a final withholding tax of 18% computed on the gross dividend received, as provided by Article 117 quater of the CGI. In order to benefit from this regime, you must expressly mention it to the financial institution that holds your shares.

Absent such option, the taxable dividend is subject to progressive income tax. Such taxable dividend is computed by applying a first tax relief of 40% of the dividend received (not capped) as well as a second flat tax relief depending on your personal situation which amounts to 1,525 euros per year for single persons and to 3,050 euros per year for couples.In this case, you also benefit from a tax credit equal to 50% of the dividend received which is capped at 115 euros (single person) or 230 euros (couple). This tax credit is deducted from income tax and gives rise to a repayment if in excess of the amount of that tax.

For 2010 income (tax declaration completed in 2011)The above described provisions will still be applicable to dividends received in 2010 (to be mentioned on the tax return filed in 2011), including the various ceilings and tax credit mentioned here above.

* The information in this part summarizes the tax provisions which apply to shareholders, physical persons, and residents for tax purposes in France.



tax applicable to capital gains For 2009 income (tax declaration completed in 2010)The tax provisions applicable to capital gains on sales of negotiable securities realized in 2009 set the level of tax on chargeable capital gains at 30.1% (18% of income tax and 12.1% of various social security contributions) when the annual amount of the sales is in excess of 25,730 euros.

It is reminded that when assessing the capital gains threshold for tax purposes, it is necessary to take into account all the operations carried out by members of the household, directly or through intermediaries.In case of an exceptional change in the personal, family or professional taxpayer’s situation, the threshold will be assessed by reference to the average proceeds of the year and the previous two years.

As from January 1st, 2006, a new system giving progressive income tax exemption for capital gains arising from share sales has been introduced.The taxable capital gain is reduced by one third per year of detention after the fifth, so that complete exemption is granted after 8 years of continuous ownership. However, the period of ownership of shares acquired before January 1st, 2006 is calculated as from that date: therefore total exemption cannot be acquired before 2014.This exemption only covers income tax. The various social security contributions are still due on the whole amount of capital gains.

Example:� 3 Until the end of the 5th year of ownership: tax charge of 18%

+12.1% of social security contributions on the whole amount of capital gains. 3 In the 6th year of ownership: tax charge of 18% on 2/3d of the capital gains

+12.1% of social security contributions on the whole amount of capital gains.� 3 In the 7th year of ownership: tax charge of 18% on 1/3d of the capital gains

+12.1% of social security contributions on the whole amount of capital gains.� 3 After the end of the 7th year of ownership: tax exemption +12.1% of social security contributions on the whole amount of capital gains.

Capital gains arising on the sale of shares registered in share savings schemes are not liable to tax, when the legal conditions are met.

mORE INFORmATION contact your regular tax adviser


For 2010 income (tax declaration completed in 2011)As for capital gains realized in 2010, the latter are subject to a total tax rate of 30.1% (18% of income tax and 12.1% of social security contributions) if the annual amount of the sales exceeds 25 830 euros. The other provisions described above remain applicable.

french wealth tax (Impôt de solidarité sur la fortune) 3 the last quoted price on December 31st, 2009: 57.81 euros, or3 the average of the closing prices during the last 30 stock market sessions of 2009: 56.73 euros.

LAfARGE61, rue des Belles-feuilles – Bp 40

75782 paris cedex 16 – francetél. : + 33 1 44 34 11 11fax : + 33 1 44 34 12 00

www.lafarge.com

tHE INDIVIDUAL SHAREHOLDERS’ RELAtIONS DEpARtMENt3 phone


3 e-mail : [email protected] Site Internet : www.lafarge.com 3 address:LAFARGEIndividual Shareholders’ Relations Department61, rue des Belles-Feuilles – BP 4075782 Paris Cedex 16 – France3 fax : + 33 1 44 34 12 37

BNp pARIBAS SEcURItIES SERVIcES3 phone


ou + 33 1 55 77 61 003 e-mail :[email protected] address:BNP Paribas Securities ServicesGCT Services aux émetteursService relations actionnaires LafargeGrands Moulins de Pantin 9 rue du Débarcadère - 93761 Pantin Cedex – France3 fax : + 33 1 55 77 34 17

Photo credits : DR Médiathèque Lafarge (p. 8), Gerber Ignus (p. 2, 13, 19, 47), Gettyimages G. Vanderelst - M. Diebel (p. 1), Diego Giudice (p.10-11, 24, 47), Stéphane de Bourgies - Abaca Press (p. 3, 17), Carolina Reis (p. 6, 23), Zisiang See (p. 12), Photothèque Eiffage - Daniel Jamme - Norman Foster (architecte)(p. 15), Alain Le Breton (p. 16, 30), Jacques Ferrier Architectures - Image Ferrier Production (p. 23), Veit Mülller - S et P Heinze Gesellschaft u. Architekten GmbH (p. 24), Vincent Rackelboom (p. 31, 36-37), Xinping Zhang - Paul Andreu (architecte) (p. 27), Henri Alain Ségalen - Rudy Ricciotti (architecte) (p. 47), Alain Tendero - Rudy Ricciotti (architecte) - Romain Ricciotti (ingénieur) (p. 47), Judy B. Smith (p. 47).

THE WEBSITE, www.lafarge.com AND ITS DEDICATED SHAREHOLDERS’ INFORMATION AREA