The document discusses Lafarge's initiatives in affordable housing. It aims to improve housing conditions for 2 million people by 2020 through four main initiatives: microfinance, earth and cement construction, slum rehabilitation, and mass affordable housing. Microfinance provides loans and technical assistance to individual home builders. Earth and cement mixes are used for durable, affordable construction. Slum rehabilitation improves conditions in informal settlements. Mass affordable housing explores modular construction systems to build quality social housing faster and at lower cost. In 2013, Lafarge improved housing for 120,000 people across 18 countries through these affordable housing programs.

1. Affordable Housing
November 2014

2. Affordable Housing
 Our definition “Housing for people who do not have access by usual
financial ways to decent housing”
 Emerging countries: 4 billion people (“Base of the pyramid”)
 Developed countries: 150 million people without decent house conditions
 Our objective: build new markets for Lafarge and improve housing
conditions
 Part of our 2015 Innovation & Transformation Programme
 Part of our Sustainability ambitions: improving housing conditions for 2 million
people by 2020
 A dedicated team in Paris and local projects embedded within the
marketing teams of Lafarge subsidiaries
2
A business and social opportunity
A unique business initiative across the industry
which improved the housing conditions of 120,000 people in 2013

3. Our 4 types of business initiatives
3
MICROFINANCE EARTH&CEMENT
SLUM REHABILITATION MASS AFFORDABLE HOUSING
• Customer issue: Individual home builder’s access to
finance
• Our solution, based on our cement bags retailers network:
Providing access to credits & technical assistance
(catalogues of house designs and bill of quantities,)
• Customer issue: looking for durable solution without concrete
• Our solution: Mix of cement and soil to produce non burnt
clay bricks, keeping asthetic and thermal inertia of earth
construction
• Customer issue: looking for good waterproof solution
• Our solution: Bagged concrete supplied to small
customers in informal settlements
• Customer issue: quality & speed of large scale projects
• Our solution: Lafarge works with developers to improve
quality & speed of construction.

4. 18 countries with Affordable Housing projects
4

5. 5
Affordable Housing
Microfinance offer - Zambia

6. Housing Microfinance
6
A Complete Housing Solution for Individual Home Builders
Access to financing Technical assistance
Access to Retailers Construction solutions
Site Visits &
Building Plans
Complete
Housing
Solution
Professional
advice from
Architects
Concrete
blocks offer
Modular
houses for
bit-by-bit
construction
Roofing
solutions
Trained & competitive Microfinance Institutions
For home extensions
& renovation
For new homes or
bit-by-bit construction
Pick-up of materials
Availability of products
& prices checked
Trained to basic
construction technical
assistance
Cost estimates
(Bill of Quantities)

7. Funding
and / or
technical
assistance
Customer
Microloans
Loan officers
Promotion
Technical
assistance
Partner
Retailers
LAFARGE
Loanstoretailers
Benefits for Lafarge
• Creates a new
market
• Contributes to the
social development of
low income families
Benefits for the
Customer
• Access to top quality
technical assistance,
• Ability to generate
new income
• A more comfortable
life
Benefits for the MFI
• Introduces to customers
a needed and financially-
beneficial product
• Creates a strong positive
impact
• Provides product
diversification
• New customers carefully
selected
Our approach of Housing Microfinance
Creating projects in partnership with MFIs
and building material retailers
In September 2013, Lafarge Zambia launched its ‘Program for Housing Microfinance’,
with BancABC as the first partner
Materials
including
Lafarge cement
bags
Partner
(Microfinance) Bank

8. Achievements
Achievements
Project Launch September 2013
Number of Micro Credits to date 819
Financial Partners •BancABC
•Madison Finance
•ZNBS
Client Profile
• Name: Kelvin Kanyumbu
• Married with 2 children
• Borrowed for completion of
House and building of a
small shop
• Kelvin is a security officer
and wife is a trader
Our first client

9. 9
Affordable Housing
Mass Housing

10. Mass Affordable Housing
 Innovative construction system for
multiple storey housing allowing
construction modularity
 Project currently developed with a
municipality near Bordeaux, a social
housing promoter and an architect.
 Support from Lafarge to the
architect on technical specifications.
 Development of such new
construction systems could take the
form an investment in architects
10
New social housing in developed economies: e.g. in France

11. Mass Affordable Housing
Situation
 Government & developers are looking for new
construction solutions to
 Build faster Social Housing projects
 Improve the quality & perception of such
projects (aesthetic, durability)
Lafarge approach
 Identification & test of construction systems
to optimize cost, speed, quality and durability
 Research Center in France & Construction
Development Labs
 Facilate implementation of such projects
 Lafarge Construction Specialists in countries
 Ready-mix business line
11
Addressing the needs for Social Housing in emerging countries
Illustrations
Integrated structural formwork

12. 12
Roll out Model – Lafarge Zambia
 Find an adequate technology to make houses affordable
 Build Employee houses as proof of concept
 Roll out to the rest of the country