U.S. Construction & Cement Outlook: 2006

NIRMMA

February 6, 2006

Delray Beach, Florida

Edward J. Sullivan

Staff Vice President and PCA Chief Economist

Anatomy of Growth:Illinois

2001 Total

4.162 MMT

Residential

.829 MMT : (20%)

Nonresidential

.649 MMT: 16%)

Public

2.666 MMT: (64%)

2005 Total

4.163 MMT (0.0%,2005)

Residential

1.127 MMT : (27%)

Nonresidential

.588 MMT: (14%)

Public

2.421 MMT: (58%)

2009 Total

4.621 MMT

Residential

.963 MMT : (21%)

Nonresidential

0.795 MMT: (17%)

Public

2.863 MMT: (62%)

0.001 MMT

0.298 MMT

-.061 MMT

-.245 MMT

0.457 MMT

-0.164 MMT

.207 MMT

.441 MMT

Key Points of Analysis

U.S. Economic Outlook

Construction Outlook

Cement Outlook

Residential

Nonresidential

Public

Demand

Operating Conditions

Demographic Outlook

Economic Outlook: 2007-2009

Real GSP Growth:Illinois

0%

1%

2%

3%

4%

5%

2001 2002 2003 2004 2005 2006 2007 2008 2009

Annual Percent Change

U.S.

U.S. & Regional Demographic Outlook

US Population

Thousands of Persons

200000

220000

240000

260000

280000

300000

320000

340000

360000

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

2020

US Population Adds Roughly 40 million People by 2020 …and 8 million by 2007

Demographics & Connection to Construction Activity: 2005-2009

Population Adds 14 Million PersonsPopulation Adds 14 Million Persons

Adds 420,000 School Age PersonsAdds 420,000 School Age Persons Education ConstructionEducation Construction

Adds 3.2 Million Retirement Age PersonsAdds 3.2 Million Retirement Age Persons MedicalMedical

Adds 4.7 Million HouseholdsAdds 4.7 Million Households Housing, Retail & Infrastructure.Housing, Retail & Infrastructure.

Population Growth Rate: Illinois

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1994 1996 1998 2000 2002 2004 2006 2008

Annual Growth Rate

United States

Net Migration Growth: Illinois

-20

-10

0

10

20

30

40

1991 1993 1995 1997 1999 2001 2003 2005

(000) Persons

Demographics 2005-2009: Illinois

Population Adds 270,000 PersonsPopulation Adds 270,000 Persons

Addition of 13,000 School Age PersonsAddition of 13,000 School Age Persons Education ConstructionEducation Construction

Adds 64,000 Retirement Age PersonsAdds 64,000 Retirement Age Persons MedicalMedical

Adds 141,000 HouseholdsAdds 141,000 Households Housing, Retail & Infrastructure.Housing, Retail & Infrastructure.

Population Share of Total US: Illinois

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Share of Total United States, %

Cement Per Capita: Illinois

0.368

.319

0.200 0.250 0.300 0.350 0.400

Illinois

United States

Cement Tons Per Thousand Persons, Based on 2000-2004 Average

Demographics Only: Illinois

200

5,200

10,200

15,200

20,200

25,200

30,200

35,200

1995 1999 2003 2007

Tons Added Annually Due to Expanding Population

Total Population Change X Constant Five Year Average Cement Per Capita

Construction & Cement OutlookOverview

Single Family Construction: Illinois Permits

0

10,000

20,000

30,000

40,000

50,000

60,000

2001 2003 2005 2007 2009

# of units

Multi-Family Construction: Illinois Permits

0

5,000

10,000

15,000

20,000

25,000

2001 2003 2005 2007 2009

# of units

Home Appreciation: Illinois

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1995

Q1

1996

Q1

1997

Q1

1998

Q1

1999

Q1

2000

Q1

2001

Q1

2002

Q1

2003

Q1

2004

Q1

2005

Q1

Annual Percent Change

Ratio of Home Prices to Income:Illinois

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

1980 1983 1986 1989 1992 1995 1998 2001 2004

Annual Growth Rate Comparison

20 Year U.S. Average

Residential Cement Consumption:Illinois

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Metric Tons

Nonresidential Cement Consumption:Illinois

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Metric Tons

Public Cement Consumption: Illinois

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Metric Tons

Cement Outlook: Illinois

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Metric Tons