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BRUNO LAFONT APPOINTED CHAIRMAN AND CEO OF LAFARGE GROUP


Bertrand Collomb steps down as Chairman of LafargeBruno Lafont appointed Chairman and Chief Executive Officer of the Group   
The Board of Directors of Lafarge, at a meeting on May 3 2007 chaired by Bertrand Collomb, appointed Bruno Lafont Chairman and Chief Executive Officer of Lafarge. The Board thanked Bertrand Collomb for the 18 years he had devoted to the growth and international development of the Group and the promotion of its values. The Board congratulated him on the manner in which he had prepared his succession and on his continued commitment to exemplary standards of corporate governance. During this period, sales and net income were multiplied by five and enterprise value increased tenfold. Bertrand Collomb has been appointed Honorary Chairman of the Group. The Board recognised the contribution made by Bruno Lafont, who has fully demonstrated his talents in his role as Chief Executive Officer of Lafarge since January 1 2006.  On Bertrand Collomb and Bruno Lafont’s recommendation, the Board adopted the principle of appointing a Vice Chairman of the Board of Directors, to be chosen from amongst the independent directors. This decision marks the Group’s desire to continue to implement best practice in terms of corporate governance. This appointment will be made at a future date.  Bertrand Collomb commented:  “It is with considerable emotion, but also confidence in the future of the Group, that I am standing down as Chairman of Lafarge. I would like to thank all of those who I have had the pleasure of working with at Lafarge over the years. Together, we have built a Group which today has a huge potential. Lafarge is an exceptional company, and I am proud to have been at its head. One essential quality in a manager is to know how to prepare for his succession. In my case this is now done, and I am delighted to be handing over to Bruno Lafont, who has all the qualities that will be needed to lead our Group in a changing world.”  Enclosed: Biographies of Bertrand Collomb and Bruno Lafont  


  
Notes to editorsLafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 71,000 employees in over 70 countries, Lafarge posted sales of Euros 17 billion in 2006.Lafarge has been committed to sustainable development for many years, pursuing a strategy that combines industrial know-how with performance, value creation, respect for employees and local cultures, environmental protection and the conservation of natural resources and energy. Lafarge is the only company in the construction materials sector to be listed in the 2007 ‘100 Global Most Sustainable Corporations in the World’. To make advances in building materials, Lafarge places the customer at the heart of its concerns. It offers the construction industry and the general public innovative solutions bringing greater safety, comfort and quality to their everyday surroundings.Additional information is available on the web site at www.lafarge.com.     

Investor Relations Yvon Brindamour :               +33 (1) 44 34 11 26Yvon.brindamour@lafarge.com Daniele Daouphars :          +33 (1) 44 34 11 51Daniele.daouphars@lafarge.com Stéphanie Billet :                                 +33 (1) 44 34 94 59           Stephanie.billet@lafarge.com
 COMMUNICATIONS Stéphanie Tessier :            +33(1) 44 34 92 32Stephanie.tessier@lafarge.com Lucy Wadge :                        +33(1) 44 34 19 47Lucy.wadge@lafarge.com Claire Mathieu :                    +33(1) 44 34 18 18Claire.mathieu@lafarge.com

  

Biography of Bruno Lafont, Chairman and Chief Executive Officer of Lafarge

  Bruno Lafont (born in 1956) is a graduate of the Hautes Etudes Commerciales leading business school (HEC 1977, Paris) and the Ecole Nationale d'Administration (ENA 1982, Paris). Bruno Lafont started his career at Lafarge as an internal auditor in the Finance Department in 1983. In 1984, he joined the Sanitaryware Division (no longer part of the Group) and moved to Germany. He successively headed up the Administrative and Finance Department in Germany (1984-1986), and then the Division's Finance Department (1986-1988), before becoming Head of International Development (1988-1989).  In 1990, he was appointed Vice President for Lafarge’s Cement and Aggregates & Concrete operations in Turkey and the Eastern Mediterranean zone, a position which he held until 1994. In 1994, he was appointed Group Executive Vice President, Finance, joining the Group’s Executive Committee. He was responsible for setting up EVA, a system to measure value creation based on return on capital employed, which forms the basis for calculating bonus payments to the Group's managers. He actively developed relations with shareholders and played a key role in the inception and running of the Shareholders' Consultative Committee.     In 1998, Bruno Lafont was appointed Executive Vice President of the Gypsum business and successfully orchestrated its international expansion, first in the US, which accounts for half the worldwide plasterboard market, and then in AsiaBetween 1998 and 2003, this business saw its sales double and its geographical presence expand from 12 to 25 countries.     In May 2003, Bruno Lafont joined the Group’s Direction générale as Chief Operating Officer. He had joint responsibility for the Cement business and oversaw the Group’s activities in North America. During this period, he visited all the Group's international operations and accelerated development in Asia, notably via a joint venture with Shui On in China, which made Lafarge one of China’s top three cement producers and leader in the South-West of the country. At the same time, he also oversaw the Group's Aggregates and Concrete operations, identifying the importance of innovation as a key factor of market differentiation and added value in concrete.  Under his leadership, Lafarge set about redefining the Group’s vision and reformulating its principles of action by rallying its 80,000 employees around four key priorities: sharpening its customer focus, promoting a performance-based culture, creating a more efficient organization and developing employees’ expertise. Bruno Lafont was appointed as a Member of the Group’s Board of Directors on May 25, 2005.  On January 1, 2006, he became Chief Executive Officer, subsequently launching the "Excellence 2008" strategic plan in June 2006, to ensure sustainable leadership for the Group. 2006 saw two major strategic operations: the buyout of minority interests in Lafarge North America and the sale of the Roofing business.  In May 2007, Bruno Lafont was appointed Chairman and Chief Executive Officer of the Group.  


 

 

Key events since Bruno Lafont took office

 §         February 2006: Launch of the Lafarge North America minority interests buyout, to optimize Lafarge's continued development in North America.

§         March 2006: Launch of the safety roadmap, priority n°1 for the Group's employees. For Lafarge, safety lies at the heart of its humanist values and is a key factor in improving productivity. Lafarge aims to be among the leading industrial companies worldwide in terms of safety, and has made it a strategic priority.

§         March 2006 - Lafarge launches a project targeting energy self-sufficiency in buildings by 2050. Under the auspices of the World Business Council for Sustainable Development, Lafarge is the instigator of a debate on energy efficiency in residential and commercial buildings. The aim is to design and construct buildings which do not consume any external energy, which are carbon-neutral and which can be built and managed for the lowest possible cost.

§         June 2006: Announcement of the "Excellence 2008" strategic plan. Concentrating on the group's strengths, focusing on achieving its ambitions and with a more efficient organization, this plan reflects Lafarge's determination to be the best in its industry, for its customers, its shareholders, its workforce and all its stakeholders.  The plan's objectives include a simplified organization, cost reductions and a clarification of the group's growth strategy, focusing primarily on cement in growth markets and on innovation.

§         August 2006: Start-up of the first cement plant in BangladeshThe start-up of the first cement plant in Bangladesh, a market of rapid urban development, is the outcome of a bold challenge, on a technical, political and human level. The cement plant, in the North of the country, receives limestone from neighbouring India, via the world's longest conveyor belt (17 km).

§         September 2006: Bruno Lafont becomes Special Advisor to the Mayor of Chongging in China. Lafarge, the number one cement manufacturer in South-West China, stands out through its commitment to environmental protection and health and safety for its employees and subcontractors.

§         September 2006: Development stepped up on growth markets Population growth, urban development and economic growth generate annual growth of some 100 million tonnes on the world cement market. Lafarge is particularly well placed to take advantage of this growth, which is why the Group has chosen to focus on internal development. In cement and mainly in emerging markets, Lafarge announces a construction programme for 40 million tonnes in additional capacity between 2006 and 2010, corresponding to six times the equivalent of its current cement production in France: in particular in India, China, Ecuador, Russia, Morocco, South Africa and Uganda, as well as North America and France.

§         October 2006: French launch of the Sensium technological cements, which combine three key innovations: dust-free technology, a new production process and innovative properties to improve fluidity and workability on construction sites.

§         December 2006: Sale of the Roofing business for an enterprise value of EUR 2.4 billion. The group maintains a 35% stake in the capital of the new entity.

§         February 2007: Record annual results announced by the Group Sales: +17%                     Current operating income: +23% Net income: +25%               Net earnings per share: +23%

 

 

 

Biography of Bertrand Collomb, Honorary Chairman of Lafarge

  Career  Bertrand Collomb (1942) is Honorary Chairman of Lafarge. After graduating from the Ecole Polytechnique and the Ecole des Mines in Paris, Bertrand Collomb started a government career, working for the Industry Ministry’s Regional Department in Lorraine (1967-1970). During this period, he also obtained a law degree and taught economics at the Ecole des Mines de Nancy. In 1970, he went to the United States, where he obtained a PhD in Management at the University of Texas.
Returning to France, he held various posts in the Industry Ministry and in ministerial teams of staff. Alongside this, he also taught courses in management theory at ESSEC.
Strongly influenced by his research on management during his PhD studies in the United States, he founded and, from 1971 to 1973, managed the Centre for Management Research at the Ecole Polytechnique.
He joined Lafarge in 1975, as Regional Director for the West of France, based in Nantes. After occupying various positions within the group, he was appointed CEO of Lafarge Corporation, the group’s North American subsidiary (1985-1988), before becoming chairman and CEO of the group in August 1989, at the age of 47. In 2003, he became Chairman of the Lafarge Board of Directors, remaining in this position until May 2007, when Bruno Lafont was appointed Chairman and Chief Executive Officer of the Group. 
  

Development of the Group  At the helm of the company, he created a new Research Centre at l'Isle d’Abeau, in 1991. He accelerated Lafarge’s international development, while preserving the humanist spirit and entrepreneurial values that have always been a feature of the group. Under his management, the group multiplied in size, particularly with the acquisition of Redland in 1997 and Blue Circle in 2001, becoming the world leader in building materials. In 2002, Bertrand Collomb began preparing his succession and launched Leader for Tomorrow, a far-reaching project to mobilize the group’s 80,000 employees, placing Bruno Lafont in charge of this project.     

Sustainable development  Convinced of the private sector’s role in the field of sustainable development, he has been the driving force behind Lafarge’s approach in this domain. One of the rare CEOs to attend the Rio Summit in 1992, he understood very early on the importance of the issue of climate change. In 2000, he personally initiated the pioneering partnership between Lafarge and the WWF International – a partnership in the context of which Lafarge made ambitious commitments to reduce its CO2 emissions. In 2003, on behalf of the group, he endorsed the ten commitments of the United Nations Global Compact, as well as the Diversity Charter in 2004. In an ever more complex environment and in a much wider dimension, he has continued the group’s humanist tradition, insisting on respect for the men and women who work at the company, anticipation and preparation for change, and social dialogue.        

A committed player As a committed player, Bertrand Collomb has contributed for many years to initiatives involving the corporate world in the vital issues of modern citizenship. From 1992 to 2000, he presided over the creation of ANVIE (French association for the inter-disciplinary valorisation of social sciences in companies), and, at the same time, was Vice-President of the French association “Entreprises pour l’Environnement”.  From 1996 to 2001, he chaired the “Institut de l’Entreprise” and, in 2000, was co-Chairman of the Trans-Atlantic Business Dialogue, an organisation bringing together European and American companies to facilitate trade. Since 2003, he has been Vice-Chairman of the Global Business Coalition against HIV/AIDS, an organisation grouping together companies from all over the world to combat AIDS.  Chairman of the WBCSD (World Business Council for Sustainable Development) in 2004 and 2005, he pushed for the creation of the Cement Sustainability Initiative, the world’s first sectorial initiative in support of sustainable development and against climate change.  A long-standing participant at Davos, Bertrand Collomb has been a member of the European round table of Industrialists since 1989 and has been Chairman of IFRI (the French Institute of International Relations) since 2004. Today, maintaining his great interest in economic and social issues, Bertrand Collomb continues to play an active role in several institutions. He has been president of AFEP (Association Française des Entreprises Privées), which brings together the 80 biggest French groups, since 2002. In 2001, he was elected as a member of the “Institut de France” (Academy of Moral and Political Science).  Bertrand Collomb is also a director of Total, DuPont and ATCO.     

 

The transformation of the Group / 1989- 2007

 Key dates for the group

1989            Bertrand Collomb becomes Chairman and CEO

1991             Inauguration of the Central Research Laboratory in Isle d’Abeau, the world’s leading building materials research facility

1997             Acquisition of Redland

2001             Acquisition of Blue Circle

2001    Listing on the New York Stock Exchange

2002    Launch of Leader for Tomorrow, a far-reaching corporate project to mobilize the group’s 80,000 employees, after the group doubled in size following the Blue Circle buyout

2003    Separation of the functions of Chairman and CEO (permitted under a new company             law). Bertrand Collomb steps down from his post as the group’s CEO. Bernard Kasriel, previously COO of the group, becomes CEO. He remains in this function until his retirement, at the end of December 2005. Bruno Lafont is appointed Chief Operating Officer of the group, with joint responsibility for the cement division.

2004    Bruno Lafont is appointed as a director of the group

2006    Bruno Lafont becomes the group’s CEO on January 1st

2007    Bertrand Collomb steps down as Chairman and becomes Honorary Chairman

            Bruno Lafont becomes Chairman and CEO 

International development

1990    The group enters the East European market, a few months after the fall of the Berlin wall (East Germany in 1990, then the Czech Republic in 1992, Poland in 1995, Russia in 1996, Romania in 1997, Ukraine in 1999…) 

1994    First plant in China

1997    Entry into South Korea, at the time of the Asian crisis  Acquisition of Redland, raising the group to the rank of world leader in Aggregates

1998    The group moves into South Africa

1999    The group moves into India

2001    Acquisition of Blue Circle, making Lafarge the world’s leading cement company and the world leader in building materials The group moves into several countries: Malaysia, Chile, Greece, the UK, Nigeria

2005    Joint venture with Shui On in China: Lafarge becomes one of China’s top three cement producers and the leader in South-West China

2006    Start-up of the first cement plant in Bangladesh, supplied with limestone from India by a 17 km-long conveyor belt.  

Sustainable development

1996            Creation of the European Works Council

2000            Signature of the pioneering partnership with the WWF

2001            Voluntary commitment to reduce the group’s CO2 emissions throughout the world by 20 % per ton of cement.

2002            Signature of the partnership with CARE to design and implement a Group programme to combat AIDS in the most severely affected zones, primarily in Africa

2003            Signature of the United Nations Global Compact

2004            Signature of the Diversity Charter

2004            Group-wide mobilization following the tsunami that struck its cement plant in Banda Aceh in Indonesia. After initial emergency relief work, the group launches longer-term aid projects to help the local population and starts rebuilding the plant.

2005            Signature of an agreement with the international trade union federations concerning social responsibility and international social relations.  


 

Key figures 1989/2007Sales multiplied by 5 Net income multiplied by 5 Market capitalization multiplied by 7 Enterprise value multiplied by 10 Number of employees: from 22,000 in 1989 to 71,000 in 2007Number of countries: from 8 in 1989 to 70 in 2007 Lafarge became the world leader in building materials   

19882006
Sales€ 3.4 billion € 17 billion
Net income€ 286 million€ 1,372  million
Market Capitalisation € 2.8 billion€ 20.2 billion
Enterprise value € 3.1 billion€ 30.1 billion
   
World ranking Cement Number 6Number 1
World ranking AggregatesNumber 8Number 1
World ranking Concrete Number 2
World ranking Gypsum Number 12Number 3
  

May 07, 2007

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