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FINANCIAL ANALYSTS MEETING 2003 Results
Paris, 17 february 2004
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In an unfavorable economic context, a lower
Operating Result mainly due to exchange rates,
but a higher net income thanks to financial and
exceptional items.
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A mixed evolution of the EU Markets

• France rebound of cement market in Q4
• demand stability in 2003.

• Belgium decreasing domestic market and effect of
  German imports.

• Spain continuing dynamism of construction sector
  in 2003. 1st cement market in Europe (46.1 MT).

• Greece big impact of forthcoming Olympic games.

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A difficult year for Ciments Français market in
North America

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Fair business conditions in most of our emerging
markets

• Morocco exceptional harvest, infrastructure
  projects and social housing programs.
• Thailand strong economic growth
• Bulgaria growth in the construction sector
• Southern India sustained activity
• Turkey signs of recovery

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Higher cement and Ready Mixed Concrete volumes
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with a sharp increase of cement and clinker
sales in emerging markets, a softer growth in the
EU and a decrease in North America.
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Cement sales are down mainly due to exchange rate
effect, but aggregates/ready mixed concrete sales
are up
(Sales contribution by business in M)
CEMENT CLINKER 1,864 1,918 - 2.8
3.3 AGGREGATES/CONCRETE 951 921 3.2 4.1
OTHER ACTIVITIES 84 91 - 7.7 - 3.3
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... with a stable level in the EU ( 0.4 ),
strong activity in emerging markets ( 6.4 )
but receding sales in North America due to the
devaluation of US Dollar vs Euro.

- 3.7
12.8
0.0
27.0
Total 2,899 2,930 - 1.1
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Lower consolidated Operating Income (-5,6 )...
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...due to a negative impact of exchange rates
despite balancing of activity by cost effects...
(Operating results variation analysis in M)

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...with the addition of improving industrial
efficiency...

• Efficiency
• Thermal 4
• Electricity -
• Logistics 4
• Manpower 4
• 12 M

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and the decrease of fuel costs.

• Fuel costs - 8.9 (clinker volumes like for
  like)
• Improvement of per ton consumption - 2.2
• Fuel price 0.3
• Exchange rate effect - 7.0
• Fuel mix evolution
  2003 2002
• Coal 50 49
• Petcoke 36 36
• Substitute fuels 9 10
• High viscosity fuel 3 3
• Others (Fuel oil, gas) 2 2

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Highly contrasted Operating Income among
countries.
- 34.5
19.6
ns
170.0
Total 529 560 - 5.6
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Net Income Group share is up thanks to a high
level of exceptional income and lower financial
charges...
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Lower financial charges

• Financial income / charges variation in M (14)
  
• Of which
• Volume effect (5)
• Lower Interest rates (5)
• Foreing exchange 2
• Turkey net financial and currency adjustments
  (6)

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Exceptional items
(M)

• Tax refund in Belgium 37
• Capital gains 21
• Favorable outcome of a pending legal procedure 21
  
• Pension and welfare liabilities (17)
• Assets write off (9)
• Miscellaneous (5)
• TOTAL 48

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Valuation of long term assets
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Significant reduction of net financial debt
higher Cash Flow and lower financial investments


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Balance sheet
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Improved Gearing and debt coverage
(M)
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Shareholder value
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OUTLOOK 2004
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Outlook 2004
European Union
France/Belgium Stability
Greece Activitydownturn
Spain Small increase
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Outlook 2004
North America
North America Slight growth
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Outlook 2004
Emerging Markets
Turkey Sustained recovery
Thailand Market still growing
Morocco Persisting favorable trend
Bulgaria Continuing growth
Egypt Mild recovery
India Up
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2004 More favorable market conditions and our
strong balance sheet will allow for renewed
growth
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