2002 RESULTS

2

2002 A Year of Contrasts

Good growth of cash flow from operations: 17%

Successful reduction of debt by €1.5bn

Divestments realized as planned

Blue Circle synergies are on track and confirmed

Market conditions weaker in H2, and especially Q4

Significant negative currency fluctuation effect

Provisions for competition issues

BCI performance hindered by adverse environment

2002 RESULTS

Key Figures

Jean-Jacques Gauthier

Executive Vice President and Chief Financial Officer

4

€ m 2002 2001 02 - 01Sales 14 610 13 698 + 7%

Operating income from 2 132(1) 1 934(1) + 10%ordinary activities

Net income group share before 914 892 + 2%extraordinary provision and goodwill

Net income group share beforeextraordinary provision 756 750 + 1%

Net income group share 456 750 - 39%

Income per share 3.5 6.0 - 41%

Net dividend 2.3(2) 2.3

Key Figures

(1) Not including share of equity affiliates: € 131m in 2001 and € 146m in 2002(2) Subject to approval of shareholders meeting 20/5/2003

€

5

Cement 1 606 + 12%+ 3%

Aggregates & concrete 336 - 11%- 10%

Roofing 132 + 3%+ 4%

Gypsum 51 NA

Holdings 7 NA

Total 2 132 + 10%+2%

Operatingincome

Variation2002 - 2001 € m

Divisions Contribution to Operating Income (1)

Like for like

(1) Operating income from ordinary activities

2002 RESULTS

Divisions

7

Growth from first full year consolidation of Blue Circle

A further improvement of underlying operations and operating margins

Mixed markets, particularly in quarter 4

Blue Circle synergies on track, earnings disappointing

Fuel costs reduced by 50 € cents per ton

Negative currency fluctuation effect

ROCE 8.4%Operating margin 21.4%

12%

1 434

1 606

Cement Operating Income (1) : + 12%

(1) Operating income from ordinary activities(2) Not including share of equity affiliates: € 73m in 2001 and € 79m in 2002

€ m

2001(2) 2002(2)

8

Cement: operating margins further progressingdespite challenging year

21,0%

21,9%

23,0% 23,3%

21,4%21,0%

1998 1999 2000 2001 2002

Lafarge without former Blue Circle operations

Lafarge with former Blue Circle operations (1)

(1) 2001 pro forma, with 12 months BCI, comparable consolidation method for Morocco (at 50%), and new depreciation and asset life policy

9

Strong European results supported by favorable price trends

North American results impacted by some weaker markets and a difficult year for asphalt and paving

ROCE 7.1% Operating margin 6.6%

378

-11%

336

2001(2) 2002(2)

Aggregates & Concrete Operating Income (1) : - 11%

(1) Operating income from ordinary activities(2) Not including share of equity affiliates: € 3m in 2001 and € 4m in 2002

€ m

10

Aggregates & Concrete operating margins affectedby unfavorable markets

13,0%14,1%

6,9% 7,1%7,2% 7,4%

6,6%

5,7%

4,2%

3,40%3,80%

1998 1999 2000 2001 2002

(1) 13.2% excluding UK levy introduced in 2002

(1)

Aggregates

Total

Other activities(Asphalt &Paving...)

Ready Mix

11

Roofing Operating Income (1) : + 3%

Operating income maintainedin Germany despite further market decline

Mixed markets across Europe

Improvement in operating incomein the USA and continued growth in Asia

ROCE 4.2%Operating margin 8.6%

3%

128132

(1) Operating income from ordinary activities (2) Not including share of equity affiliates: € 14m in 2001 and € 16m in 2002

2001(2) 2002(2)

€ m

12

7,1%

5,1%

10,6%10,4%

13,6% 13,5%

12,1%

8,1% 8,6%

5,7% 6,5%

1998 1999 2000 2001 2002

Germany

Roofing

Europeexcluding Germany

Asia, America

Roofing Operating Margins

13

Gypsum Operating Income (1)

North American losses reduced significantly

Good results in Europe except for Germany and Poland

Asia and Australia showing further growth

ROCE 3.6% Operating margin 4.4%

3

51

(1) Operating income from ordinary activities(2) Not including share of equity affiliates: € 6m in 2001 and € 12m in 2002

2001(2) 2002(2)

€ m

14

4,4%

0,3%

5,1%

13,7%

10,8%

1998 1999 2000 2001 2002

Gypsum Operating Margins

15

€ m 2002Cash flow from operations 1 956Changes in working capital -165Sustaining capex -704

Free cash flow 1 087

Development investments -809Divestments 725

Free cash flow after investments 1 003

Dividends -388Equity issuance 256Currency fluctuation impact 572Other 44

Debt reduction 1 487

Debt as 01.01.02 11 703Debt as 31.12.02 10 216

Significant Debt Reduction

16

2002 2001 2000

Gearing 110%(1) 110% 84%

Net debt/EBITDA 3.3 4.1 2.6

Cash Flow/Net debt 19% 14% 24%

Operating income interest cover 4.1 3.6 3.9

(1) Excluding extraordinary provision and currency effects, the gearing amounts to 96%

Financial Structure:progressive improvement of financial ratios

2002 RESULTS

Bertrand Collomb

Chairman and Chief Executive Officer

18

Blue Circle Operations

First full year of consolidation

Operational integration successfully realized

Synergies delivery on track: € 117m in 2002

Bottom line performance held back by a few specific

market and operational circumstances

19

Blue Circle Operations

Synergies € 117m Negative market impact: -€ 79m

Philippines (price not offset by volumes)BCNA (volume NE, price SE for cementand volumes SE for aggregates and concrete)Malaysia (immigrants)

• Operating issues: € 10m

Ravena

Start-up costs

Halkis strike

20

Our Strengths and Weaknesses

Geographical diversity Growth drivers linked to GDP Local business with worldwide

expertise Technical performance know

how and achievements Regional technical support Strong cash flow generation Value creation potential Currency exposure limited to

accounting translation

Profit generation stronger in Western Europe & North America (so exposure to slowdown)

Time required to implement and roll out performance improvements

Value creation challenge in Roofing and Gypsum

Competition issues Currency exposure to some

volatile regions

21

Confirmed Strength of Cash Flow Generation

2002 Strong cash flow generation of € 2bn Debt reduction of € 1.5bn Controlled capital expenditure at € 1.5bn

2003 Maintain momentum

Strong cash flow (performance improvement) Divestment program Investment limited to € 1.5bn

Return to 2000 financial structure

22

Investments

2002 Limited capital expenditure Sustaining capital expenditure € 704m Internal development € 380m USA, Poland,Morocco, China External development € 429m

Serbia, Slovenia, South Korea

2003 Limited capital expenditure Sustaining capital expenditure € 750m Internal & External Development € 750m

23

Divestments

2002 Divestments € 725m

Achieved at good prices in a challenging environment Andalusia in Southern Spain, Brumado in Brazil Concrete activities in Canada

2003 Continue selective asset pruning

24

Competition Issues

To be cautious,we have taken a provision for both gypsum and German cement cases.

We have appealed the EC gypsum fine, and will discuss fine amount for German cement

We are making sure anti-competitive practices (or the appearance of) will not happen any more

We believe profitability is linked to concentration, performance, differentiation and innovation.

Industry shares more and more return on capital objectives

OUTLOOK

26

Outlook

An uncertain economic environment North America:

• Slight decline in cement and aggregates volumes

• Good prospects for gypsum wallboard Europe: soft markets, with upside in Eastern Europe and

continuing decrease in Germany Emerging markets: continued growth

A generally positive pricing outlook, but with a few difficult markets

Limited impact of oil prices on our fuel costs

27

Outlook

We will not expect too much from the markets,

and will focus on performance improvement

We will maintain strict financial discipline

New organization of senior management plays

on the strengths and the traditions of the Group

29

Lafarge is a corporation listed in the NYSE and Euronext Paris. Statements made in this presentation that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors") which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonality of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's Reference Document filed with the French COB under the reference number D02-162 and updated under the reference number D02-162/A1, and its annual report on Form 20-F filed with the Securities and Exchange Commission in the USA. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.

Disclaimer