InvestorEvent 2010

Italcementi Group
Investor Event
Ait Baha (Morocco) cement plant

Agadir 24-25
September 2010
Italcementi
Group
Investor Event 24-25 Title

September 2010
0
0
Welcome to Agadir
Opening remarks
Macroeconomic and construction cycle
Key strategic guidelines and actions
Focus on selected markets
Medium term financials
Concluding remarks
Italcementi Group
Investor Event 24-25 September 2010
Italcementi Group
Investor Event
Welcome to Agadir
Italcementi
Group
Agadir 24-25
September 2010

September 2010
Morocco plays a major role in Africa thanks to free trade

agreements and enjoys a strategic status with the European
Community
Free trade agreements with:
Egypt
Tunisia
Jordan
Turkey
U.S.A.
Withdrawal of all custom duties with
the European Community by 2012
Italcementi Group
Political and cultural milestones

Independence date: 18 November 1955
King (23rd of the Alaouite Dynasty): Mohammed VI
Parliament (2 Chambers) with elected representatives
Government rests on a Parliamentary majority, with Abbas El Fassi as
Prime Minister
Local democracy at regional, provincial and municipal levels, with
administrative control by Interior Minister representatives (Walis,
Governors)
Official language: Arabic
Native language: Berber
Working languages: French, Spanish (in the North)
Religion: Islam
Italcementi Group
Souss Massa Draa: one of the most important regions

of the country
Regional capital: Agadir
10% of the territory
10% of the population
12% of GDP
Agadir
Main activities:
Agriculture
Tourism
Sea fishing
Italcementi Group
Key economic indicators (2009)

Population (mln):
32.4
GDP (EURbn):
65.4
Gross fixed investment (% GDP):
30.7
Inflation (%):
1.0
Exports (EURbn):
10.0
Imports (EURbn):
23.6
Expatriate remittances (EURbn):
5.2
Tourism revenues (EURbn):
3.9
Public deficit (EURbn):

Rating
(1.4)
Fitch
BBB-/stable
Standard & Poors
BBB-/stable
Moodys
Italcementi Group
Ba1/stable
Ciments du Maroc: an old and successful story

of continuous growth
1951: setting up by Ciments Franais of Socit des Ciments dAgadir
(SCA)
1969: SCA listed on the Casablanca Stock Exchange
1989: setting up of two subsidiaries in Ready-mix and Aggregates
businesses
1992: merger of SCA and Cimasfia), to form Ciments du Maroc
1999: took control of Asmarb) and mergered with Ciments du Maroc
2000: construction of the Laayoune grinding center
2010: start-up of the Ait Baha plant
a) Controls Safi plant construction

b) Owner of the Marrakech plant
Italcementi Group
Ciments du Maroc: a listed company with a shareholders

including major Moroccan and foreign investors
Shares listed on the Casablanca Stock Exchange in 1969
Market capitalization: EURm 1,500 (beginning of September 2010)
Market capitalization ranking: 8th
Shareholding
Others 15.8%
ADFD 5.4%
CIMR 7.8%
ITC* 62.3%
CDG 8.7%
ADFD: Abu Dhabi Fund For Development

CIMR: Caisse Interprofessionnelle Marocaine de Retraites
CDG:
Caisse de Dpt et de Gestion
Italcementi Group
* Through Ciments Franais
Agadir plant: the birth place of Ciments du Maroc
July 1952
Italcementi Group
Ait Baha greenfield: the last major investment, increasing

the production capacity and generating significant savings
July 2010
Italcementi Group
10
Welcome to Agadir
Opening remarks
Concluding remarks
Italcementi Group
11
When we last met in Sept. 2008 we were anticipating

The global economic
environment is deteriorating
making medium term

forecasts more uncertain
Two shockwaves have halted a

five-year-long world economic
boom...
According to most analysts, the

risk of a full-blown depression (i.e.
a 1929 style crisis) is still
relatively low
Resurgent inflation and reduced

output growth...
However, restoring confidence

and reducing existing imbalances
will take time
Volatility dominates....
On balance, recessionary
conditions....
Italcementi Group
World growth rates will remain

less bright than in the recent past
for some years ahead
Also, the ongoing crises signal an
urgent need to shift to a less
leveraged, less energy-intensive
economic system
12
We promptly responded with a specific framework

of actions...
Cost savings plan - structurally lower break even point
Capacity adjustments, but four major investments completed
Focus on cash generation
Tight control on CapEx but priority on strategic investments

(capacity and efficiency)
Strong reduction of Working Capital
Reinforced our financial structure
Italcementi Group
13
and leveraging on our well balanced geographical

diversification
Cement country ranking and market shares
BELGIUM
CANADA
U.S.A.
MOROCCO
3rd - 15%
36% - 1st
5th - 4%
6% - 8th
7th - 5%
2nd - 25%
2nd -15% (*)
14% - 4th
3%
2009 Revenues: Breakdown by Geography
n.m.
BULGARIA
TURKEY
KAZAKHSTAN
CHINA
(after eliminations)
SPAIN
FRANCE
ITALY
7th - 6%
2nd - 32%
1st - 25%
Market Share in regions

where the Group operates
(Italcementi estimates)
(*) excluding Puerto Rico
Italcementi Group
Other Emerging Markets,

Trading & Others
14%
15% - 4th
5%
n.m.
24% - 1st
7% - 3rd
THAILAND
INDIA
EGYPT
GREECE
Source: Italcementi analysis based on brokers reports
14
We rank 5th among international cement players

2009 (EURm)
Company
Declared capacity
Mt
Revenues
15,884
203
203
110
97
73
EBITDA
3,600
13,993
3,066
11,117
2,102
10,433
1,906
5,006
972
SOURCE: Bloomberg; Company Reports
Italcementi Group
15
with a clear focus on cement

Cement + Clinker, Ready-mix, Aggregates volumes sold, 2000-2009
Cement
Mt
Player
Aggregates
Mt
2000
2009
2000
2009
2000
2009
68
141
29
37
176
196
82
132
25
42
87
143
47
79
26
35
76
239
52
65
16
54
NA
168
39
56
18
11*
53
39*
SOURCE: Company data; annual reports
Italcementi Group
Ready-mix
Mm3
(*) Calcestruzzi not included
16
and a fairly good profitability

EBITDA margin, percent
Company
20092009
H1-2010
H1-2010
22,7
21,4
21,9
21,5
18,9
15,8
18,3
17,3
19,4
17,7
SOURCE: Italcementi; Company reports
Italcementi Group
17
A still adverse short/medium term setting

Recovery is on track but remains lacklustre and unevenly spread
Economic policy reactions have helped, but rescue costs will have
long-term repercussion
Financial fragility remains a key issue and weak growth prospects will
not help to solve the problem
Current accounts and public debt imbalances are also a severe threat
to the stability of the global scenario
All in all, we have surfaced from more than a normal recession and
a new, more sustainable equilibrium has to be found. This process will
take time
Italcementi Group
18
Agenda
09:15
Welcome to Agadir
09:30
Opening remarks
09:50
10:10

10:40
M. Chaibi
C. Pesenti
C. Fortuna
G. Ferrario
Coffee break
G. Ferrario
11:10
Sustainable development
Innovation
S. Gardi
E. Borgarello
Industrial efficiency
F. Vitaletti
Power strategy
12:30
First Q&A session
Italcementi Group
G. De Beni
C. Pesenti - ITC Team
19
Agenda
14:30
G. Ferrario
Roundtable on
Italy
F. Pedetta
North America
J.P. Meric
Egypt
F. Doneg
Morocco
India
16:00
10:10
16:20
M. Chaibi
M Caneppele
Coffee break

2010 2014 forecast
G. Ferrario
Financial policy
17:00
Final Q&A session
G. Maggiora
C. Pesenti - ITC Team
Conclusions
Italcementi Group
C. Pesenti
20
Vision and Mission guided by strong values
Building our vision

To be a world class local business building
a better and sustainable future
for all our stakeholders
Building our mission

To create value in the building
materials sector through
the Innovative and Sustainable
use of natural resources for the benefit
of our communities and clients
Italcementi Group
21
Global forces and long term trends will continue to drive

the growth of our industry
Forces
Most relevant for

construction/cement
Trends
Growing life sciences and healthcare

Changing
demographics
Emerging new consumers

Changing social values
Shifting centers of economic activity
Experiencing
Earth's limits
Increasing link of world economies

Growing infrastructure congestion
Continuing urbanization and the rise of mega cities
Proliferating
technology and
knowledge
Entering a second "agricultural revolution"

Accelerating green economy
Increasing weight of public sector
Rebounding regulation
Key uncertainties/decisions
Market economy reversal
A post-crisis "new normal"
Inflation or deflation
Italcementi Group
Emerging uncertainties
Green new normal
Battle for resources
Africa rising
22

Forces
Most relevant for

construction/cement
Trends

Changing
demographics
Experiencing
Earth's limits
Proliferating
technology and
knowledge

Morecenters
resources
will become
supply limited vs.. growing
Shifting
of economic
activity
demand (not only fossil fuels)
Widespread awareness of environmental issues will add
Growing
infrastructure
congestion
costs and
require higher
investments per output
Continuing
urbanization
and thescarce,
rise of megacities
Water has
already become
40% gap projected in
2030
Italcementi Group
Green new normal
Africa rising
23

Forces
Most relevant for

construction/cement
Trends

Changing
demographics

Experiencing
Earth's limits
Proliferating
technology and
knowledge

Growing
congestion
infrastructure
By 2020 more
than 50% of world GDP will come
from developing economies
Continuing urbanization and the rise of megacities
More than 60% of population growth to 2030 will
come from Africa, India and Middle East; of which
Accelerating
1/3 from
greenSub-Saharan
economy
Africa
Italcementi Group
Green new normal
Africa rising
24

Forces
Most relevant for

construction/cement
Trends

Changing
demographics

Experiencing
Earth's limits

Proliferating
technology and
knowledge
Entering
a second
"agricultural
World
trade
growth torevolution"
2020 forecasted @ 2-2.5X GDP
growth
Accelerating
green economy
Massive
investment
on infrastructure required to cope
Increasing
weight of
public sector
with surge in demand
Italcementi Group
Green new normal
Africa rising
25

Forces
Changing
demographics
Experiencing
Earth's limits
Most relevant for

construction/cement
Trends

By 2020, developing countries will account for
Emergingalmost
new consumers
80% of the worlds total urban population
19
new values
megacities (2X current) in the next 10
Changing
social
years, and all in developing countries
Continuing urbanization and the rise of mega cities
Proliferating
technology and
knowledge

Italcementi Group
Green new normal
Africa rising
26

Forces
Most relevant for

construction/cement
Trends

Changing
demographics
Experiencing
Earth's limits

Consumers are increasingly interested in buying
Changing green
social values
and willing to pay a premium for
environmentally
products/services
Shifting centers
of economicsustainable
activity
New mindsets and regulations will create a very
significant market for clean tech, fostering
Growing infrastructure
congestion
technology advancements
in a virtuous cycle
Proliferating
technology and
knowledge

Italcementi Group
Green new normal
Africa rising
27

Forces
Changing
demographics
Experiencing
Earth's limits
Proliferating
technology and
knowledge
Most relevant for

construction/cement
Trends

new
GDPconsumers
growth in emerging countries will foster
Emerging
emergence of new world-class players, supported
Changing social
values developing-world business models
by innovative
Shifting centers
of economic
activitya new wave of regulation
In developed
countries
coming,
address an increasingly complex
Increasing is
link
of worldtoeconomies
and interconnected business environment
Regulation in developing countries will evolve to
Continuingensure
urbanization
the rise oflong
megacities
more and
sustainable
term growth
Italcementi Group
Green new normal
Africa rising
28
Welcome to Agadir
Opening remarks
Concluding remarks
Italcementi Group
29
Scope of this presentation

From short
term
conditions
To long term
trends
What lies in the
middle, namely in the
Plan horizon, in terms
of GDP and
construction
evolution?
Hesitant and
uneven recovery
Clear-cut destination,
more uncertain path
Italcementi Group
Shifting centres of
economic activity
Growing infrastructure
congestion
Continuing urbanization
Shifting centres of
economic activity

Accelerating green
economy
30
The recovery is eventually on track, though at a very

moderate pace
G7: Shape of Recovery after Past Recessions
Slope of rebound
smaller than in past
recoveries. Resuming
from financial crises
is normally more
painful
At current rates it will
take at least another
year to regain
previous cyclical
peaks
New signs of
weakness emerging
here and there
Italcementi Group
31
and there is limited economic policy room to exploit

Net Government Balance/GDP (%)
2008
2009
0.0
2010*
-3.3
-3.3
-5.0
-6.4
-2.7
-4.1
-5.3 -5.3
-7.5
-8.0
-10.0
-11.0
US
Germany France
-9.8
-11.2
Italy
Spain
Source: European Union; * Spring 2010 forecast
Short Term Interest Rate: US and Euro area
The unprecedented swelling

of public deficits must revert
to austerity
Sudden change in the fiscal
stance soon after the Greek
crisis
Ultra-loose monetary policy
also ahead (close-to-zero
policy interest rates +
continuing quantitative
easing)
Credit conditions set to
remain under stress
Italcementi Group
32
A persisting divide between developed

and emerging economies (1)
GDP in ITC Developed Countries*
(Cagr, % ch)
2.1
Euro Area
1.3
0.3
North
America
Total
Developed
Adjustments to the
2007-2009
structural break
continuing over
2010-11
In the new
normal we project
moderate growth
also in the outer
years of the
forecast (20122014)
The US will
continue to
outperforme
Europe
* Weighted by ITC cement volume sales in 2009
Italcementi Group
33
A persisting divide between developed

and emerging economies (2)
Emerging area
still on the rise
solidly, with
growth largely
self-sustained
GDP in ITC Emerging Countries*

(Cagr, % ch)
Other
Emerging
Emerging
Asia
Total
Emerging
China and India

should remain the
stars among the
Group developing
countries
Marginally lower
figures compared
to the previous
five years may be
credited to Egypt
and Morocco
Italcementi Group
34
In the developed economies recessionary effects have

proved the most severe in the construction sector
Construction Investment in ITC Developed Countries*
5.9
4.2
CI
3.0
1.9
0.7
2.7
1.9
3.6
2.6
2.0
1.0 Cagr 1996-10: 0.9%
-0.3
-2.9
-3.6
-8.4
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Source: our calculations on national statistics and EU data; * Weighted
by ITC's cement volume sales in 2009 excl. Greece, 2010: R1 estimates
Italcementi Group
A long and vigorous

expansion preceded a
dramatic construction
slump (-15% cumulated
fall)
Exceptional conditions
favouring past housing
boom:
good
macroeconomics
record-low interest
rates
wide financial
innovations
GDP has begun to recover
this year though
construction continues to
decline
35
although results - particularly in housing - have been

widely different between the two Atlantic sides
US: Housing investments, permits and starts
In the US:
housing has more than
halved over a four years
time-span
the downturn has ended;
however, the recovery is
not in full swing
leading indicators still
send ambiguous signals
Euro area: Housing investments and permits
In the Euro area:

overall less painful
decline in both depth and
length
widely uneven national
outcomes
leading indicators still
trending downwards
Italcementi Group
36
2010 will be another year of contraction in developed

construction markets
Construction in ITC Developed Countries*
(%)
Negative carry-over from

Q2/10 in our major
developed markets
0.9
Euro Area
-2.9
-6.2
-4.9
-7.2
North
America
-14.5
Total
Developed
Italcementi Group
Another negative overall

result now seems likely in
the US given particularly
weak non-residential
Further 5% contraction of
construction markets in
Europe with close to, or
higher than double-digit
negative figures in Spain
and Greece
37
while prospects between Europe and North America

should diverge remarkably in the medium term
Construction in ITC Developed Countries*
(Cagr, % ch)
Euro Area
4.3
3.2
2.5
North
America
0.5
-4.7
-1.4
Total
Developed
In North America
construction is
expected to rebound
strongly (mainly thanks
to housing)
In the Euro area a mild
recovery should set in
during 2011 (later on in
Spain and Greece),
with full period results
still slightly negative
Even allowing for the
recovery, in the final
year construction
would remain 4-5 pp
below levels of ten
years before
Italcementi Group
38
feeding slightly better results in terms of cement demand

On balance a
1.4% CAGR is
expected for
cement demand
in the Group
developed
countries
During recoveries
cement demand
tends to
outperform
construction
investment (not in
France)
Sources: elaborations on Aitec, US Geological Survey, national statistics and Eurostat data; quarterly data
Italcementi Group
39
which, however, will not affect the mature feature

of the cement market in the developed area
US+EU15+Japan: GDP and Cement Consumption
(index numbers 1950=100)
Cagr (%)
Consumption in most
industrialized areas is back
to mid-Sixties levels
Even in the growth period
1983-2007 cement
demand increased by a
weak 1.3% p.a. (vis--vis
2.8% for GDP)
As a matter of fact,
markets are mature in two
respects:
declining weight of
construction on GDP
decreasing content of
cement per unit
invested in
construction
Italcementi Group
40
Medium term construction prospects remain buoyant

for the Group emerging countries
Construction in ITC Emerging Countries*
(Cagr, % ch)
An overall growth well

over 6% reasonable in
the medium term
Asian countries
expected to outperform
the Med Rim ones
Outlook supported by:
Other
Emerging
Emerging
Asia
strong
macroeconomic
context
margins to
stimulate domestic
demand
Total
Emerging
high infrastructure/
housing needs
(which explains
why construction
far outpaces GDP
growth)
Italcementi Group
41
which translates into an equally bullish cement demand

trend
World ex China (US+EU15+Japan):
GDP and Cement Consumption
(index numbers 1950=100)
CAGR (%)
Even considering that

some markets are
approaching a more
mature stage, a CAGR of
over 6% for the Group
emerging seems a fairly
cautious prospect in the
forecast horizon
As a matter of fact, in the
whole emerging world,
excluding China, cement
demand grew 1
percentage point p.a.
above GDP since 1992
(an even wider difference
emerges taking China
into account)
Italcementi Group
42
To sum up
Macroeconomic environment
Recovery ongoing; risks of

another very weak year
(2011) not negligible
Robust growth across the

whole period
Growth remaining moderate

also over the outer forecast
years
Risks of overheating in some

countries (China, India );
political risks in other nations
not clearly measurable
The US continues to
outperform Europe
Construction
Only tepid recovery in sight, in
some cases after 2011
No industrial country (except
Canada) expected to regain
pre-crisis levels within the
Plan horizon
The US expected to far
outshine Europe
Italcementi Group
Asia remains in the lead
Emerging area
Developed area
Macroeconomic environment
Construction
Activity continuing at close-to7% average growth pace
Reduced differences in
performances expected
among countries
Construction intensity set to
increase further in the Group
emerging
43
Welcome to Agadir
Opening remarks
Context & guidelines

Innovation
Power strategy

Concluding remarks
Italcementi Group
44
Overview of Group strategic guidelines

Strategic guidelines
Strengthen performance on
Sustainable Development
Improve product portfolio and

technologies through innovation
Focus on industrial efficiency
(the cost leader is the industry
leader)
Improve Group
Organizational
performance
Be prepared to capture growth

opportunities in emerging markets
Target: deliver significant recovery in Groups performance

and prepare for the next wave of growth
Italcementi Group
45
Cement demand historical trend

Cement demand trend in Italcementi domestic markets
All domestic markets (Mt)
401
450
400
400
350
300
200
300
255
370
327
283
250
200
150
1996
1996
Italcementi Group
2000
2000
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
46
Key Historical Financials
(*) Local GAAP before 2004.. 2009 figures prepared in compliance with IAS 23 and 2008 figures restated accordingly
Italcementi Group
47
Expected cement demand trend

Cement demand trend in Italcementi
domestic markets/areas (Mt)
US 1
35
30
25
0
All domestic markets
5.9%
32
24
Europe
500
450
400
0
2007 08
470
4.9%
150
100
0
370
09
CAGR
2009-14
10
11
12
13
2014
98
101
2 2
Emerging countries
350
300
250
0
2007 08
1 Essroc area
2 Include Egypt, Morocco, South India, Bulgaria, Thailand, China Shaanxi, Kazakhstan, Turkey
Italcementi Group
0.6%
337
6.3%
248
09
10
11
12
13 2014
48
Expected cement demand trend by country

Cement demand trend in ITC domestic markets (CAGR 2009-2014 percent)
Country
Construction market
France
Mature
markets
Belgium
Italy
Spain
Greece
0.4
0.2
-1.5
1.0
-2.0
0.0
Italcementi Group
5.7
4.2
5.0
8.3 2
8.6
India
SOURCE: Italcementi
5.9
6.2
Morocco
5-71
Bulgaria
Thailand
Kuwait
Kazakhstan
Turkey
4.3
Egypt
China
0.4
0.4
0.6
-0.3
North America
Emerging
countries
Cement market
5.9
5.6
3.7
21.0
NA
8-101
6-81
5.4
7.2 2
3.3
9.2
5.3
1 Based on gross fixed investments growth

2 ITC local market
49
Cement price assumptions for Italcementi markets

Country
Mature
markets
Price
Rationale
France-Belgium
Continuing stable dynamic in

line with inflation
Italy
Price recovery from 2010 very

weak levels
Spain
Negative trend of real prices in a
scenario of slow recovery of the
utilization rate
Greece
North America
Thailand
Turkey
Price recovery from 2009-2010 level
China
Week real price trend because of
overcapacity in the regional area
Bulgaria
Emerging
markets
Morocco
Price dynamics lower than inflation due

to pressure from new players in the
market
India
Kuwait
Price trend under inflation rate
Kazakhstan
Pressure on real prices from new

players and governmental control
Egypt
Expected trend
Italcementi Group
stability
increase
50
Upward trend is expected for petcoke and steam coal prices

API 4 & High Pace Index + 50 HGI FOB yearly average 2006-2014 ($/t)
API 4 & High Pace Index +50 HGI FOB yearly average 2006-2014 ($/t)
140
120.2
120
Steam Coal
CAGR 09-14=7.2%
100
80
80
63.7
50.8
90
62
66
70
72
56
55.4
40
87
73
86.2
62.7
60
84
46.3
Petcoke
CAGR 09-14=16.2%
34.0
20
0
2006
2007
2008
2009
API 4
2010
2011
2012
2013
2014
High +50 HGI
SOURCE: Italcementi
Italcementi Group
51
as well as for power prices

ITC Group average power cost (index 2006 = 100)
160
140
120
100
80
2006
2007
2008
2009
2010
2011
2012
2013
2014
SOURCE: Italcementi
Italcementi Group
52
Carbon scenario and business perspectives
The Kyoto Protocol is still binding for signatory countries, while new
commitments for developed countries in the period post-2012 are still to be
negotiated
National and regional carbon and energy efficiency constraints keep on coming:
main developing countries, such as China and India, are running tests on sector
trading, while progress is extremely slow in US, at least at a Federal level
Europe target for post-2012 is emissions 20% below 1990 levels by 2020; 30%
option still on the table; accordingly, ETS Phase 3 implementation will keep
tackling emissions from industry and the power sector
Details on the application of EU ETS Phase 3 are being finalized: benchmark
based allocation applies to the cement sector, requiring a strong effort on
improvement
Carbon footprint reduction is becoming more and more crucial

Italcementi Group
53
Overview of the strategic guidelines

Context and Outlook
After huge market

downturn, recovery
scenario still uncertain and
volatile
Decoupling of the growth
path between emerging and
mature countries
Price scenario still
uncertain, value is to be
captured from industrial
efficiencies and product
innovation
CO2 and other emissions
footprint will be key to
compete in the new green
normal
Italcementi Group
Strategic guidelines
Strengthen performance on
Sustainable Development
Improve product portfolio and

technologies through innovation
(the cost leader is the industry
leader)
Improve Group
Organizational
performance
Be prepared to capture growth

opportunities in emerging markets
54
Strengthen performance on Sustainable Development

Main actions
Reduce CO2 emissions per
clinker ton:
Alternative fuels/biomass
Thermal consumption
Clinker content in cement (fly ashes,

slag, limestone, pozzolan cement):
Base line decrease not satisfactory;
dedicated action plan still to be
identified
Strengthen renewable power
generation: Italgen projects to
supply green and cost competitive
energy to ITC plants (i.e. Wind farm
in Turkey, Morocco, Bulgaria, Egypt
and hydro revamping in Italy)
Italcementi Group
870
209
193
CO2
Kg/t clinker
Roll out best technologies to

reduce dust, SO2, NOx emissions
904
Dust
g/t clinker
46
633
SO2
g/t clinker
NOx
g/t clinker
843
481
1,595
1,543
2007
2010 E
294
1,255
2014
55
Innovation: improve product portfolio and technologies

Technology improvements
Low temperature clinkerization
Recyclable raw materials for clinker production
Biotechnological production of clinker
Continuing innovation
Products/Applications/Branding
Thermal
Cement
Reduces
organic
and inorganic
pollutants in
the air
Cement
optimizing
thermal
efficiency
of buildings
Biodegradable
cement bag
Italcementi Group
Reduced water consumption

Carbon capture and
sequestration
Improve product portfolio towards a more

green offer, Cement 2008, percent
Alipre
Sulfoaluminate
technology to
assure rapid
setting, high
early strength
Highperformance
concrete
Transparent
cement
Concrete for
special
applications
Percentage of clinker
Ordinary
Portland
44
Limestone
22
Multiple
Blend
17
Fly ash
Slag
Cement
Pozzolan
Others
Higher clinker rate means higher CO2

emission on cement
56
Improve industrial efficiency

Main actions
Optimize industrial processes

(STEP)
Share operational best practices

across Group countries
Leverage CTG competences

and increase its role in
performance improvement
projects
976
920
Thermal
consumption
MCal/t clinker
855
Improve local skills and

capabilities
Focused performance
improvement investments:
capacity de-bottlenecking, energy
efficiency, productivity
improvement
Selected major
renewal/revamp of older
technology capacity (e.g.
Bulgaria, Egypt, Italy)
7.0
Labour
productivity
Kt cement/
employee1
4.9
2007
5.5
2010E
2014
1 Operational FTE dedicated to cement production
Italcementi Group
57
Growth opportunities: differentiated strategy in Group

markets
Size of bubble depicts size of cement market
Investment projects included in industrial plan
in terms of domestic demand (2008)
base case
155
South India1
Morocco
105
China
(Shaanxi)1
Egypt
Pursue opportunistic
growth/ consolidation
55
% growth
Cumulated 2009-25 expected growth
110
Thailand
50
Kazakhstan
45
Turkey
Kuwait
Belgium
Defend
USA1
-5
Italy
-10
-15
Bulgaria
Rationalize/
Restructure
Spain South
(Andalusia)
Greece
France
Spain North
(N.Basque)
Lower
Higher
Profitability
1 Italcementis regional market
Italcementi Group
58
Growth opportunities: focused regional approach

in new markets
Size of bubble depicts
Cumulated 2009-25 expected cement demand growth1 (percent)
Cumulated 2009-25 expected cement demand growth1
(Percent)
High
size of market capacity (2008)
300
Ethiopia Zambia
280
Tanzania
Cambodia
260
140
120
100
Cameroon
Bangladesh
Vietnam
Philippines
Saudi Arabia
Russia
80
Angola
Jordan
Iran
40
Algeria
Tunisia
20
0
Not enter
South Africa
Malaysia
Libya
United Arab Emirates

Lower
Ghana
Syria
Ukraine
60
Low -20
Indonesia
Very high margins but

high risk and/or
difficult to access
Sub-Saharan Africa:
approach through
asset light initiatives
(e.g. terminals)
South East Asia:
medium-term
opportunity scouting
Qatar
Medium
Potential profitability2
Good potential profitability

Additional new markets to be
limited to Italcementi proximity
Higher
areas
1 Based on the structural curve where available and on estimates elsewhere

2 Index based on the relative performance of markets on: Supply demand balance (Utilization rate 2008), Market concentration (Market share of top 3 players), Market
conduct (Price of cement 2008; structural overcapacity of the area)
Italcementi Group
59
Welcome to Agadir
Opening remarks

Innovation
Power strategy

Concluding remarks
Italcementi Group
60
Sustainable Development Key Actions

Energy efficiency
Reduction of
carbon footprint
Alternative fuels and biomass

Clinker/cement ratio
Emissions to atmosphere
Protection of
the environment
Natural resources, including water

Biodiversity
Health & Safety
Social
Responsibility
Stakeholder engagement
Support to communities
Italcementi Group
61
Reduction of carbon footprint

After a continuous improvement over the last few years ...
50
747
740
40
730
30
720
717
20
710
10
700
0
2004
2005
2006
2007
2008
million t CO2 / year
kg CO2 / t cement
750
2009
4% reduction
vs. 2004
Italcementi Group
62
Reduction of carbon footprint

... the industrial plan 2010-14 is accelerating the trend
kg CO2 / t cement
38% of total
reduction
9% of total
reduction
717
53% of total
reduction
need further
development
11% reduction
vs. 2009
640
2009
Italcementi Group
Improvement of
Increase of
energy efficiency alternative fuels
reduction of
clinker/cement
target 2014
63
Protection of the environment: emissions to atmosphere

Group stack emissions are constantly decreasing over the last years, with the
exception of dust, still heavily affected by the consolidation of the Egyptian
plants starting from 2006
dust
2493
SO2
g/t clinker
NOx
42% reduction
vs. 2004
1453
1296
66% reduction
vs. 2004
440
199
146
2004
Italcementi Group
2005
2006
2007
2008
2009
64
Protection of the environment: stack emissions

The industrial plan 2010-14 is further reducing emission of SO2 and NOx, but
mainly resulting in a significant reduction of dust emissions
78% reduction
vs. 2009
Dust
g/t clinker
46,5
2009
Impact from previous

plan investment
Process
improvements and
small CAPEX
Major CAPEX
E2014
37% reduction
vs. 2009
293,8
SO2
g/t clinker
2009
Impact from previous

plan investment
Process
improvements and
small CAPEX
Major CAPEX
NOx
g/t clinker
E2014
16% reduction
vs. 2009
1254,5
2009
Italcementi Group
Impact from
previous plan
investment
Process
improvements and
small CAPEX
Major CAPEX
E2014
65
Protection of the environment: water

The cement manufacturing process uses limited amount of water and has no
major discharge. However, with population growth and economic development
accelerating demand for everything, freshwater is becoming scarcer, and the
full value of water is becoming increasingly apparent
Italcementi Group
66
Protection of the environment: water

The Group has completed the water-risk assessment of its
sites using the Global Water Tool developed by the World
Business Council for Sustainable Development.
25
0,00
Italcementi Group
million m3
0,25
2009
50
2008
0,50
2007
m3/t cem
Only a limited number of plants is located in critical areas.

The Group is taking action on all of them. Ait Baha plant in
Morocco is a good example.
Group water consumption

is decreasing
67
Protection of the environment: biodiversity

For the cement industry, quarry rehabilitation is the starting point for the
preservation of biodiversity and protection of ecosystems
The Group lists 273 quarries, 74 of which contain or are

adjacent to areas designated for their high biodiversity
value. As of today, 221 quarries (80% of the total) have
a rehabilitation plan in place.
The Group has already set a new target: 90% of quarries
with a rehabilitation plan by 2012.
Italcementi Group
68
Health & Safety

Safety performance is steadily improving
since the launch of Zero Infortuni project
in 2000. As of today the frequency of injuries
has decreased by 78%, down to 5.1 Lost
Time Injuries per million hours worked.
Special efforts are devoted to the managing
contractor safety.
Occupational health issues are addressed,
extending best local practices to all
subsidiaries .
As of today, 44% of potentially exposed
workers are protected with monitoring of
basic exposure agents at work, far beyond
locally enforced legislation.
78% of monitored workers are already
aligned with the highly demanding Group
standard.
Italcementi Group
69
Health & Safety
30
Lost Time Injuries frequency rate
Cement
25
Aggregates
23,5
Concrete
20
Group
15
78% reduction
vs. 2000
10
5,1
5
0
2000
2001
Italcementi Group
2002
2003
2004
2005
2006
2007
2008
2009
70
Stakeholder engagement
The Group aims to build enduring
relationships with the communities based on
mutual respect, active partnership and long
term commitment.
71% of Group cement plants have structured
frameworks or formal agreements to engage
with local stakeholders.
45% of Group cement plants organised an
Open Door event in the last 3 years.
Italcementi Group
71
The Group supports community based
projects that can make a difference in a
sustainable way without creating dependency
and supports regional development and small
business opportunities.
In 2009, the Groups subsidiaries invested

EURm 2.8 to support communities (0.6% of
Group EBIT). Moreover, EURm 1.9 were
dedicated to Open Door events and
sponsorships.
In addition, the Fondazione Italcementi Cavaliere
del Lavoro Carlo Pesenti earmarked around
EURm 2 for donations and local development and
EURm 0.7 for sponsorships
Italcementi Group
72
Morocco: plages propre initiative

Italcementi Group
73
Welcome to Agadir
Opening remarks

Innovation
Power strategy

Concluding remarks
Italcementi Group
74
Product Innovation
Creation of value for our customers with innovative and tailor-made solutions
Products, applications and services at low cost, with consistent quality
and sustainable for the environment and the people.
Produced by a team of excellent people with technical, marketing and
commercial skills
Italcementi Group
75
Cement & Light i.light

i.light is the latest result of Italcementi research.
The material is innovative because it is realized
with a pre-mixed concrete and new additives
which bind plastic resins, thus ensuring
the transport of light.
Physical and Mechanical characteristics

Elastic Limit in flexure: 1.92 MPa
Peak Stress: 7.70 MPa
Post peak Response: strain hardening plastic
behavior
Italcementi Group
76
Expo Shanghai 2010 - The Italian Pavilion External view (day)
Italcementi Group
77
Expo Shanghai 2010 - The Italian Pavilion Internal light
Italcementi Group
78
Expo Shanghai 2010 - The Italian Pavilion External view (night)
Italcementi Group
79
The new thermal cement for class A buildings
Italcementi Group
new thermal cement
Is able to ensure optimized energy
management thanks to very low
heat transfer coefficients
Has the same durability and
strength characteristics as
conventional concrete
Has thermal conductivity 0.15-0.5
watt/mK compared with 1.6
watt/mK (traditional concrete)
Helps to keep the home warmer in
winter and cooler in summer
Italcementi Group
Material
Thermal
Conductivity
()
Resistance to
steam
()
Traditional
Concrete
1.2-1.6
50-120
Insulating
Concrete
0.15
80
LEED certification
i.Lab: building designed by Richard Meier
7,500 m2 reserved for research laboratories
Photovoltaic panels
High
Solarperformance
panels (provide
65%
of
and
durable
annual energy requirements)
materials
Geothermal plant
Italcementi Group
Energetic efficiency (renewable

sources, thermal efficiency, etc.)
81
i.Lab Awards
i.Lab recently received two important awards.
The first is the Good Design Award, a
prestigious international award, created in 1950
in Chicago (USA) by celebrated designers and
architects like Eero Saarinen, Edgar J.
Kaufmann Jr. and Charles and Ray Eames.
The second is the European Greenbuilding

Award 2010, awarded by the European
Commission to i.Lab as the best Italian building
for Energy Efficiency in the category Best New
Building.
Italcementi Group
82
Improve product portfolio and technologies

Technology improvements
Low temperature clinkerization

Recyclable raw materials for clinker production
Biotechnological production of clinker
Reduced water consumption

Carbon capture and sequestration
Continuing innovation
Improve product portfolio towards a more green offer

Products/Applications/Branding
Reduces organic
and inorganic
pollutants in the air
Thermal
Cement
Alipre
Cement
optimizing thermal
efficiency
of buildings
Sulphoaluminate
technology to assure
rapid setting, high
early strength
Highperformance
concrete
Transparent
cement
Italcementi Group
Biodegradable
cement bag
Concrete for
special
applications
83
Already on the market
Product innovations roll out over plan period

Roll-out plan
Business unit
Cement and
binders
Product
Italy
FB
Spain
Morocco NA
BulGreece Turkey Egypt garia
Underway (by 2012)

Potential further
Introductions (2012 +)
Kazakhstan India
Thailand
Alipre &
derivatives
TX Active
Izycrete
Acoust. Ins.
Concrete
RMC
I.Clime
Roadcrete
Remix
TX Active
derivat.
Secondlife
Dry mortars
l.Tech
Alipre & derivat.
I.Clime
Others
I.Light
Admixtures
Polycarboxylate
admixtures
Italcementi Group
84
Facts
Around 170 dedicated R&D and Innovation staff located in Bergamo (Italy) and
Guerville (France).
Around 7,500 m2 of Lab floorspace in Bergamo and the same in Guerville
64 active patents on products and applications filed since 1994
Italcementi Group
85
Facts
0.4% of Group turnover invested in innovation in 2008 (0.2% in R&D), 0.5%
in 2010 (0.3% in R&D)
Innovation rate defined according to strict criteria which consider a product
innovative for only 5 years after its commercial launch rose from about 3%
in 2008 to 4% in 2010
The margin on innovative products is typically 2 or 3 times that of traditional
products
Italcementi Group
86
Facts
In the 2010-2014 period innovation turnover is mainly driven by mature
markets (65% in mature markets, 35% in emerging markets)
In the 2010-2014 period innovative product margins are mainly concentrated
in mature markets (76%)
In the 2010-2014 period innovation margin is mainly concentrated in the
cement & binder (52%) and the ready mix businesses (33%). Admixtures and
Premixes account for the remaining 15%
Italcementi Group
87
Facts
ITC & CF patents **
Filed Jul 1998- Jun 2010
Original patents*
Published Jul 1998-Jun 2008 C04B Code
26
128
61
15
40
12
37
25
1998-2002
NOTE
* Number of Derwent families comprising all patents relating to a specific innovation.
The graph shows patents of the controlled companies in the International Patent
Classification (IPC) class C04B which covers Lime; magnesia; slag; cements;
compositions thereof, e.g. mortars, concrete or like building materials; artificial
stone; ceramics; refractories; treatments of natural stone
Italcementi Group
2002-2006
2006-2010
NOTE
** Number of patents filed by Italcementi and Ciments Franais,
independently of the IPC class
88
The Research and Innovation Network

Universities
Standards,
Regulations,
Requirements
Architects
Italcementi Group
Research centres
R&I
Designers
Industry
Solutions
Clients
89
Innovation as a group value

We believe in the importance of
innovation not only in the development
of new products, applications and
services, but also in our management
approach. We must embrace change and
be open to new ideas in order to attract
the best talents.
Our ambition:
to be one of the most innovative
cement group in the world
Italcementi Group
90
A perfect path to creating value: down to brand and product

Corporate Brand
Master Brand
Group Innovation
Brands
Group Product
Traditional Brands
Italcementi Group
91
up to an increment in corporate value

Corporate Brand
Master Brand
Group Innovation
Brands
Group Product
Traditional Brands
Italcementi Group
92
Welcome to Agadir
Opening remarks

Innovation
Power strategy

Concluding remarks
Italcementi Group
93
Industrial efficiency benchmarks 2006-2009

global trends
Group cumulative, differences 2006-2009, EUR/calorie, EURt
Example: FUEL cost trend vs..
total industrial cost trend
+41.6%
Fuel is the biggest

industrial cost
(approx 60%)
+35.7%
vs.
+22.2%
STEAM COAL
PETCOKE
INCREASED ACTUAL
PURCHASING COST
OF ONE KCALORY, CIF
Italcementi Group
TOTAL INCREASE
IND.VARIABLE COST
OF ONE TON OF CEMENT
INDUSTRIAL PRICES RISE BUT:

Electrical consumption in KWh/t
cement -0.6%
Heat consumption at clinker in
calories/t clinker -3%
Increase in alternative fuels in % of
heat calories from 4.2% to 5.3%
Less clinker purchased in tons (-28%
between 2006 and 2009)
ACTIONS
Effects of structured continuous
performance improvements and
structured programs (STEP), focused
maintenance.
Effects of previous additions and
closures with actions on approx. on 1.8
MTons capacity
Opportunistic temporary capacity
closures (64 kilns in 2009) in addition to
final closures (11 kilns in 2009) all in
mature markets to improve cost factors
94
Step projects Main Italian plant Calusco results, an example

of short term impact of Step
Results 7 months from project startup
(EURm)
Cost
perimeter
analyzed
Total
savings
identified
53.1
short
term
5.2
med
term 7.4
2.2
Extra savings not

planned , but achieved
Savings from other
actions
implemented
3.6
1.1
2.5
2.7
short med
Total
investment term term 2.2
1.7 0.5
required
Target savings on
short term actions
1.6
Savings achieved
0.9
Savings to be achieved
Total
Achieved
0.9
Savings in 2009
Saving to work on
1 Impact calculated considering same 2007 conditions for: cement mix, cement quantity, clinker quantity, raw meal quantity, purchasing unit prices, clinker value. All
actions completed by the end of 2008.
Italcementi Group
95
Containment of industrial working capital receives the

highest attention. Clinker stock control has been steadily
decreasing over the past 18 months
Group clinker stock evolution 2009 -2010
(index January 2009 = 100)
100
80
-52%
60
40
Italcementi Group
96
Under the 2010-2014 plan industrial efficiency drivers are in

the first line of management focus, with increasing impact
Levers
Targets
Performance improvements,
operations, maintenance and SD
investments
Clinker to cement ratio
Variable industrial cost efficiency
Increased usage of alternative fuels

New plants and renewals
Capacity location, utilization and
technology cost effectiveness
Environmental performance
Capital expenditure effectiveness
Reduced clinker purchase

Opportunistic stop+go of plants
selecting the best
Italcementi Group
97
Plan 2010-2014 shows a strong effort in improving

industrial efficiency and then reducing industrial variable
costs
Group cumulative industrial variable cost, differences y/y, EUR/Ton
+22,2%
+12%
Vs.
2006-2009
Italcementi Group
2010-2014
98
Expected evolution of industrial KPIs
Thermal
consumption
MCal/t clinker
Power
consumption
KWh/t clinker
948.4
24.7
45.4
23.7
854.6
-10%
Total Fuel
vs -3%
in 2006-2009
78.2
2.0
6.8
0.9
68.6
-8%
Total Power
1.5
Power
consumption
KWh/t cement
(grinding only)
2009
1.3
vs -0,6%
in 2006-2009
0.5
Impact from
Process
previous plan improvements
investments
and small
CAPEX
Major
CAPEX
Performance
2014E
SOURCE: Italcementi; team analysis
Italcementi Group
99
Expected evolution of industrial KPIs
Labour
productivity
Kt cement/
employee1
40%
5.0
2009
0.5
Impact from
previous plan
investments
0.7
Process
improvements
and small
CAPEX
0.7
Major
CAPEX
7.0
Performance
2014E
SP 08-12
SOURCE: Italcementi; team analysis
Italcementi Group
100

Levers
Targets
investments


selecting the best
Italcementi Group
101
Clinker/cement ratio, levers and determinants of Countries

differentiation
Different factors influence feasibility
and define Countries differences
Clinker to Cement
Mix of products
offered/ demand of
user segments
/competition
Clientele mix i.e. roads vs.

constructors vs. industrial users,
ready mix requests, pricing
policies on differentiated
products.
Technical
management
Stability of plant output, of fuel

mix, quality of local raw materials
etc
Availability of
blending
components
Energy (for fly ashes) or steel (for

slag) plants closeby, economic cycle,
scarcity of raw material (i.e.
Pozzolane)
Countries laws and

limitations
Italcementi Group
Local laws on clinker minimum

content, communication
102
To improve clinker/cement ratio, products portfolio

should be moved towards blended cements
Cement, 2008 percentage
TARGET
Percentage of clinker
Ordinary portland
44
Limestone
22
Multiple Blend
17
Fly ash
Slag Cement
Pozzolan
Others
SOURCE: Company reports, Italcementi; team Analysis
Italcementi Group
100
103
Further actions required on clinker/cement ratio

and alternative fuels
3.6
Alternative
fuels
Percent
5.4
2009
Italcementi Group
1.2
9.8
0.4
Additional
Process
Impact from
previous plan improvements major
CAPEX
and small
investment
CAPEX
Performance
E2014
104
Current Alternative Fuels usage and 2014 guidelines

Spain
TDF (S. Tyres)
Animal meal
Sewage sludge
Belgium
France
RDF, sewage sludge,

animal meal, TDF
RDF/SRF
Animal meal, TDF (s. tyres),
Hazardous liquid and solid waste
Morocco,
Bulgaria
Kazakistan, China
TDF ( S.Tyres)
RDF/SRF study
Market investigation
Turkey
Waste oil
TDF (Tyres)
RDF (future)
USA-Canada-Puerto Rico
(Hazardous. waste)
RDF/SRF
Greece
Thailand
Sewage sludge
RDF (study)
Egypt
Italy
SRF/RDF
TDF (Shredded tyres)
Animal meal,
Sewage sludge
Biomass (vegetal)
Biomass (vegetal)
Sewage sludge
Oil base mud
sandy oil
RDF (future)
Biomass (vegetal)
Industrial liq. waste
India
Biomass (vegetal)
Industrial waste
TDF (tyres)
TDF= Shredded Tyres

RDF/SRF = refuse derived fuel or solid derived fuel
Italcementi Group
105

Levers
Targets
investments


selecting the best
Italcementi Group
106
Key industrial performance improvements in the plan:

major investments
Impacts beyond 2014
Next 5 years
2010
New plants/
revamping
Main investments from

previous year (~EURm
1,000) :
Italy: new Matera
Morocco: Ait Baha
USA: Martinsburg
India: Yarraguntla
Major investments in the plan Major investments in the

(~EUR 800 million) of which: plan, but completed after
Bulgaria: New Devnya
2014:
(~240 EUR m)
Egypt: Tourah wet
Italy: revampings and
line relocation (~200
reorganization (~240 EUR
EURm in the plan
m)
period)
Other Major CapEx (~350
EURm)
7 mt/y of modern capacity

In place of 2.9 mt of old cement capacity
Ind.EBITDA improved by approx
10EUR/t on the total capacity + extra
capacity
Total impact expected steady state 150
EURm EBITDA
Italcementi Group
2014
5.5 Mt/y of modern capacity
107
Martinsburg/ WestVirginia, USA

Full line 5,000 tpd clinker (2 Mt/y cement) in place of old 2,000tpd (0.640 Mt/y of
clinker). Reduction of variable costs per ton ~ 45%. Opened in June 2010,
operating since late 2009.
Quantum leap in consumption:

Fuel fm 1570 to 760 Kcal/tclk
Power down to 130 KWh/tcem
Significantly reduced emissions, i.e.
dust to lowest 15 mg/Nm3
Italcementi Group
108
Yerraguntla/ Andra Pradesh, South India

Full new line 5,500 tpd clinker (2.3 Mt/y cement) at lowest Group variable cost
level. Started shipping clinker 1stQ 2010
Very efficient new line:

Fuel 708 Kcal/tclk
Power 72 KWh/tcem
Variable costs at minimum in India
Significantly reduced emissions, i.e. dust
down to 15 mg/Nm3
Italcementi Group
109
Matera/ Basilicata, Southern Italy

Old Lepol kiln revamped in new dry line with PRH. Capacity increase from
1,650tpd to 2,200 tpd clinker (+250kt/y). ~ 30% reduction in variable cost per ton
and sharp reduction in emissions. Started in March 2010.
Strong reduction in consumption:

Fuel fm 946 to 760 Kcal/tclk
Power fm 141 to 122 KWh/tcem
Significantly reduced emissions, i.e.
CO2 down to 830kg/Tclk, SO2 down to
50mg/Nm
Italcementi Group
110
Ait Baha/ South of Agadir, Morocco

Greenfield full line 1.6Mt/y or 5,000tpd clinker and 2.2Mt cement. Two cement
mills, plant started to ship cement in late 2009 and produce clinker in July 2010.
Innovative closed circuit diathermic oil waste heat recovery and cooling.
Strong reduction in consumption vs. Agadir :

Fuel from 996 to 725 Kcal/tclk
Power from 98 to 30.7 KWh/tcem
Significantly reduced emissions, i.e. dust down
to 15 mg/Nm3
~ 20% reduction in variable costs per ton
Italcementi Group
111
Ait Baha, Waste Heat Recovery System (WHRS)*

GAS
IN
GAS
OUT
In Ait Baha a large amount of thermal

energy is available from the gas coming
from the preheater.
To reduce the temperature of gases, the
most frequently applied technology is
based on water injection in a conditioning
tower, where the gases are cooled down by
water evaporation.
Strong benefits in
resource constrained
conditions or available
at high cost:
Reduced usage of
water and power,
Power generation for
the plant.
Innovative WHR
on such a small
scale (1.5 MW),
first worldwide
application in the
cement sector on
a full scale PRH.
To avoid the use of hundreds of thousands

of m3 of water, which would be wasted
because dispersed as steam in the
processed gases, the WHR system has
been adopted with the additional
advantage to produce electrical energy.
In operating conditions at nominal
production the power produced is around
1.5 MW. The whole system is operated by
the central control room.
*double circuit diathermic oil + siliconic fluid and 1 stage turbine.
Italcementi Group
112
Under 2010-2014 plan capacity location shifts from

industrialized to emerging markets
Levers
Targets
investments


selecting the best
Italcementi Group
113
Capacity almost stable in volume terms, but approx 23% is

new or renewed. Competitiveness means improved utilization
Total net capacity
1.6
Emerging
countries
53%
54%
57%
57%
Mature
countries
47%
46%
43%
43%
2007/2008
2009
2010
2014
87
77
77
88
Utilization
rate
percent
Italcementi Group
New line in
Egypt (2015)
114
Greater rationalization in mature countries

Grey clinker capacity evolution
Bessemer: -0.6 Mt
Frederick: -0.3 Mt
Italy clinker lines
Martinsburg:
Italy closures:
Matera revamping:
1.5% reduction in capacity

4 plants for 4.3 Mt capacity
revamped or 18% of final
capacity
Italy rationalization and
closing
new investments
47%
46%
2008
Utilization
rate
percent
86
Italcementi Group
43%
2009
2010
72
71
43%
2014
84
Cluster weight on total
115
Strong focus on emerging countries

Grey clinker capacity evolution
Takli, Thailand
Yerraguntla:
Ait Baha:
Devnya, Bulgaria
Egypt rationalization, closures and
revamping
Another plant/revamping (India)
3.4
53%
2008
Utilization
rate
percent
88
54%
2009
82
57%
57%
2010
2014
81
92
9% capacity
increase
1-2 plants for 4-5
Mt capacity
revamped or 15%
of final capacity
New line
in Egypt
Cluster weight on total
Italcementi Group
116
Shifting to dry kilns technology has a huge impact on fuel

consumption
Expected evolution of kilns by process type
Does not include new line in
Egypt (Dry with pre-calciner)
Kilns production capacity breakdown % by technology

Wet
Dry long
Semi-dry
10
Dry with
preheater
16
16
19
20
2
8
Typical thermal
consumption
without by-pass
MCal/t
1,200
13
18
18
1,050
820
Dry with
precalciner
54
55
61
70
770
770
% mature
markets
2007=2008
2009
2010
2014
47.1%
45.8%
43.4%
43.2%
Italcementi Group
117
Similar impact of new mills on power consumption

Expected evolution of cement mills by process type
Mills production capacity breakdown % by technology
Typical power
consumption
Kwh/t
Open circuit
26%
24%
26%
24%
26%
22%
22%
Ball
I gen
24%
17%
II gen
17%
17%
20%
40
20%
40
17%
40
17%
40
III gen
34%
34%
34%
36%
39%
30
Vertical
Italcementi Group
0%
0%
0%
4%
4%
2007
2008
2009
2010
2014
118
Plan 2010-2014 summary

Levers
Targets
investments


selecting the best
Italcementi Group
119
Welcome to Agadir
Opening remarks

Innovation
Power strategy

Concluding remarks
Italcementi Group
120
A snapshot of Italgen
Initially as Italcementi, and as
Italgen since 2001, the Group has
had links to energy production for
more than 100 years.
Hydroplants
Transmissionlines
Italgen generates and distributes

electricity through its 14 installed
hydro power plants and 400 km of
transmission lines across Italy.
In 2009:
Installed capacity:
56 MW
Production:
308,000 MWh
Plant availability:
99%
Italcementi Group
121
Strongly focused on reinforcing a sustainable competitive

position in Italy
EURm
56,8
60
50,7
48,1%
50
38,6
40
30
Revenues
EBITDA on
Revenues
60,0%
50,0%
36,8%
40,0%
30,0%
24,1%
20,9
20
20,0%
13,7%
10
10,0%
0,0%
2007
Renewable Energy
Certificate System 300,000
certificates sold annually
2007
Italcementi Group
2008
2009
kWh
Certification
achieved for all
14 hydro plants
2008
2010 IH
Eco-Management
Audit Scheme
Italgen joined
Desertec Industrial
Initiative as Associated
Partner in March 2010
2009
2010
122
After securing efficiency and competitiveness in Italy by

leveraging the Group platform, new opportunities have
been identified
Energy demand is enjoying robust growth
Local quality of renewable energy sources is high
Competition from other players is limited
Local government is introducing new regulatory framework to

support renewable energy
Our flexible internal structure is able to fit with project

implementation requirements
Italcementi Group
123
An international renewable portfolio was launched

Bulgariaa)
Kavarna I - 9 MW (in operation)
Kavarna II- 9 MW (under construction)
Italy
56 MW (in operation)
Salerno - 1 MW (in operation)

Guiglia - 6 MW (fully permitted)
Turkey
Bares - 142.5 MW (fully permitted)
Hydro
Morocco
Laayoune - 5 MW (under construction)
Solar
Egypt
Wind
Gulf El Zeit - 120MW (under development)

a) 49% stake in Gardawind
Italcementi Group
124
with a defined corporate structure
99.9%
1% Suez Cement
1% Helwan
Cement
49 %
99.87%
99.9%
98%
GARDAWINDSrl
99.9%
Italcementi Group
125
Ongoing actions
Various efforts are ongoing on RE project development for each pipeline
Feasibility
Legal and
Permits
Implementation
and Erection
Commissioning
and Operation
Bulgaria
(Kavarna I)
2010
(Kavarna II)
2010
Morocco
(Laayoune)
2011
Italy
2011
(Guiglia)
Turkey
(Bares)
2012
Egypt
2013
(Gulf El Zeit)
Italcementi Group
126
Bulgaria - Kavarna II
Main Data
Location
Status
Expected operation
Installed capacity
Capacity factor
Estimated production
Kavarna, Bulgaria
Under construction
Q4 2010
9 MW
28-30% (2,450-2,600 h/y)
22,300-23,600 MWh/y
CO2 savings
10,503-11,116 t/y
Feed-in tariff, bilateral
contracts
Business model
Italcementi Group
127
Morocco - Laayoune
Main Data
Location
Status
Expected operation
Installed capacity
Capacity factor
Estimated production
Laayoune, Morocco
Under construction
Q4 2011
5.1MW (first step)
36% (3,150 h/y)
16,100 MWh/y
CO2 savings
12,300-13,000 t/y
Captive use for Indusaha
Grinding Center
Business model
Italcementi Group
128
Turkey - Bares
Main Data
Location
Balikesir, Turkey
Fully permitted , turn-key
Status
EPC and financing in
progress
Expected operation
2012
Installed capacity
142.5 MW
Capacity factor
35-40% (3,100 - 3,500 h/y)
Estimated production 442,200-503,400 MWh/y
CO2 savings
204,000- 232,000 t/y
Open market, bilateral
Business model
contract and feed-in tariff
Italcementi Group
129
Egypt - Gulf El Zeit

Main Data
Location
Status
Expected operation
Installed capacity
Capacity factor
Gulf El Zeit, Egypt

Under development
2013
120 MW
55-58% (4,800-5,100 h/y)
Estimated production 580,000-613,000 MWh/y

CO2 savings
243,000-257,000 t/y
Captive use to companies
of Suez Cement Group
Business model
Concessionary area
(93.7 kmq)
11.9 km2
26.7 km2
Italcementi Group
130
Egypt - Gulf El Zeit - Environmental Impact Assessment
Italcementi Group
131
Strategic guidelines and targeted goals

From 2009.
to 2014
Project developer
Assets operator and new RE pipeline developer
Italian Market
Diversified geographical presence
Pioneering new Business Model
Adopted Business Model
Unbalanced technology mix in RE
Balanced technology mix in RE
Installed capacity: 56 MW
Installed capacity: 347.5 MW
Production: 308,000 MWh
Production: 1,400,000 MWh
CO2 savings: 208,000 t
CO2 savings: 950,000 t
Italcementi Group
132
Italgens role in Italcementis overall strategy
Egypt : eligible as CDM

project, PIN approved,
PDD in progress
Strong inverse correlation with key Italcementi cost factors
Energy and
CO2 Hedge
Generating proxy offset to future volatility in CO2 emission charges

Egypt:
MoU signed thanks to ITC platform.
New cement licences released only if
captive energy production assured
Morocco:
5 MW permitted only for captive use
New law on RE just approved (March 2010)
nergie Renouvelable now the market is open
Project development skills, leveraging ITC platform
Value
Creation
Opportunity
Initial development cost is valuable as goodwill once

the project is fully permitted, EPCs established and
financing (project-based) secured
Turkey
Potential for deconsolidation and valorization through

opening to partnerships for minority/majority stakes
Turkey
Egypt
Italcementi Group
133
Conclusions
Coherently with our centenary mission, we are contributing
to secure Group energy needs and
Kavarna - Bulgaria
Salerno - Italy
Vaprio dAdda - Italy
be sure, we are doing our best to be ready for the next

Green new Normal wave of growth
Italcementi Group
Thank you
134
Welcome to Agadir
Opening remarks
Concluding remarks
Italcementi Group
135
Summing up
Realistic basic assumptions for future cement market trends for both
volumes and prices
Pricing pressures on key production factors
Sustainability, innovation and efficiency are the levers for delivering
significant recovery in Groups performances while increasing
financial flexibility
1,800
EBITDA, 2007-14 (EURm)
1,400
1,000
2007
Italcementi Group
08
09
10
11
12
13
2014
136
Welcome to Agadir
Opening remarks
Concluding remarks
Italcementi Group
137
2009 Revenues: Breakdown by Geography*

China Kazakhstan
Bulgaria
1%
2%
1%
Turkey
Thailand 3%
India
3%
Other and
trading
4%
Italy
17%
3%
Morocco
6%
France
27%
Egypt
16%
N. America
8%
Spain
4%
Greece
2%
Belgium
3%
Focus on next pages
(*) after eliminations
Italcementi Group
138
Welcome to Agadir
Opening remarks
Italy
North America
Egypt
Morocco
India

Concluding remarks
Italcementi Group
139
Italcementi Group
Investor Event
Italy
Matera (Italy) cement plant

Italcementi
Group
Agadir 24-25
September 2010
Title Investor Event 24-25 September 2010
140
140
GDP and population evolution

Population evolution in Italy
64,0
population
62,0
60,0
58,0
Immigration
effect
56,0
54,0
2047
2042
2037
2032
2027
2022
2017
2012
2007
2002
1997
1992
1982
1987
52,0
year
GDP evolution
Construction investment
8%
4%
6%
4%
2%
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
0%
-2%
1980
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
-2%
1982
0%
1980
Var. % y/y
2%
Var. % y/y
6%
-4%
-4%
-6%
-6%
-8%
years
years
Source: ISTAT, ITC estimates
Italcementi Group
141
Cement market: historical and medium-term trend

50.000
Ktons
45.000
1986/1992
+23%
1996/2006
+36%
40.000
35.000
30.000
1981/1986
-15%
1992/1996
- 23%
2006/2010
-27%
25.000
20.000
15.000
10.000
5.000
-
Source: AITEC, ITC estimates
Italcementi Group
142
Italian cement market final destination

All segments are suffering
Cement consumption (Mt)
45
Public Works
40
35
Non Resid.
Residential
33%
34%
30
36%
25
20
31%
31%
15
29%
10
5
36%
35%
35%
2008 ACT.
2009 ACT.
2010 FOR.
Source: ITC estimates
Italcementi Group
143
Production capacity vs market volumes (Mt)
2007
2008
2009
2010e
Capacity a)
49.6
49.6
49.0
49.3
Consumption
46.4
41.8
36.1
34.2
Import
5.2
4.1
3.7
2.6
Export
2.8
2.6
2.0
2.3
Over-capacity
5.6
9.3
14.6
15.4
Utilization rate
89%
81%
70%
69%
Source: ITC estimates
Italcementi Group
CAGR 07-10
-9.6%
a) Cement equivalent of clinker capacity ( clk/cem ratio = 0.75)
144
Price evolution in last 10 years

Current price at 2001 level
INDEX 2000 =100
140
130
-21.1%
120
110
100
90
2000
2001
Italcementi Group
2002
2003
2004
2005
2006
2007
2008
2009
H1
2010
145
Cement players in Italy: market shares

ITALCEMENTI
BUZZI UNICEM
COLACEM
CEMENTIR
HOLCIM
SACCI
ROSSI
BARBETTI
CALME
GRIGOLIN (gr.)
ZILLO
MONSELICE
CEM. COSTANTINOPOLI
MOCCIA
BETONCEM (gr.)
LUCANIA
CEM. CENTRO ITALIA (gr.)
VICAT (gr.)
BAUMIT (gr.)
CEM. LAURIANO (gr.)
BETON CANDEO (gr.)
# operators: 25
+ terminalists
TASSULLO (gr.)
DIANO (gr.)
CEM. VICTORIA
CEM. ARIANO
IMPORTAZIONI
Italcementi Group
(gr.) = Grinders
Source: our estimates on Aitec data
146
ITC: 2010 clinker production capacity

Zone
Sarche
Calusco
Trieste
Rezzato
Broni
North
Monselice
Novi L.
Clinker capacity
(Mlt)
Ravenna
Borgo
Pontassieve
Scafa
Montalto
Center
1.6
South + Island
4.1
Total
9.7
Guardiaregia
Colleferro
Matera
Salerno
Castrovillari
Samatzai
Vibo V.
Grinding Center (4)
Isola d.F.
Cement plant (17)

Porto Emp.
Italcementi Group
147
Go to market model
Sales office
5 Commercial areas
15 Sales offices
3 Key account manager
3 Product managers
3 Market managers
7,000 customers (out of a

total 15,000)
A homogeneous presence in
all market channels
Area Headquarter
Italcementi Group
148
Steady improvement
Environment
clinker ratio
trend
Clinker
ratio
trend
Alternative fuel
Alternative fuel
Index
2008
=100
2008
index=100
2008 index=100
Index 2008 =100

100,0
300
99,5
-1.4%
183%
250
200
99,0
150
98,5
100
98,0
50
97,5
0
2008
2009
Innovation
Italcementi Group
Target 2010
Target 2011
2008
2009
Target 2010
Target 2011
Innovation rate
149
Fixed and variable cost savings

2009 vs. 2008
2010 Forecast vs. 2009
-17.1%
-8.1%
-8.2%
-3.8%
Savings on
Fixed costs
09vs08
Italcementi Group
Savings on
Variable
Costs
09vs08
-4.0%
-1.8
Total Cost
Savings
09 vs08
Savings on
Fixed costs
10vs09
Savings on
Variable
Costs
10vs09
Total Cost
Savings
10vs09
150
Reduction of Operational Working Capital achieved

(EURm)
(108.4)
(56.8)
(23.5)
Act Dec of 2009
vs.. Dec 2008
Italcementi Group
Act June 2010

vs. Dec 2009
For Dec 2010

vs. Dec 2009
151
How can the industry recover from the current situation?

The whole sector is suffering
the current situation
Obsolete and critically located

plants
Potential conditions for some

restructuring
Plants with limited reserves

of raw materials
Overcapacity
SHORT TERM
MEDIUM TERM
Heavy competitive pressures on

market not sustainable vs.
investment requirements to
upgrade the industrial network
Industry restructuring/
consolidation
Italcementi Group
152
Our plan: revamping, industrial efficiency, fixed cost

reduction and innovation
Revamping
Variable cost today is at 2007
levels due to efficiency recovery
and reduced energy costs:
additional improvements are
expected through plants
revamping and further
optimization of fuel mix
Reduction of fixed production
cost partially offsets the
negative impact of volumes:
further actions are planned to
optimize plant structure
Alreadyidentifiedcoreplants
Otherplants
Newgrindingcentres
Exploit the full potential of

innovative products
Othergrindingcentres
Italcementi Group
153
Planned improvement of industrial KPIs

Thermal consumption
Mcal/kg clinker
960
920
-9.0%
880
840
800
2009
2014
kWh/ton clinker
Clinker power consumption
85
80
-9.6%
75
70
2009
Italcementi Group
2014
154
Conclusions:
Improvements in the next future should come from:
Efficiency:
Industrial efficiency (e.g.: alternative fuel usage, technical performance)
Labour productivity FTE optimization
Plants revamping (Rezzato/Monselice)
Network rationalization
We expect to have a positive impact on EBITDA at steady state in the region of
EURm70 at current market conditions
Market:
The current average market price is not sustainable for the industry
A price range similar to other European markets
(Spain/Germany/Austria) should have a positive impact on EBITDA at
steady state in the region of EURm75-80
Some partial help could also come from a slight increase in volumes
Italcementi Group
155
Welcome to Agadir
Opening remarks
Italy
North America
Egypt
Morocco
India

Concluding remarks
Italcementi Group
156
Italcementi Group
Investor Event
North America
Martinsburg, WV (USA) cement plant
Italcementi
Group
Agadir 24-25
September 2010
Title
157
20
18
16
14
12
10
8
6
Inhabitants, millions
350
300
250
200
150
100
50
0
1964
1974
1984
Population
1994
4
2
0
2004
2014
Real GDP
Real GDP (trillions, 2009$)
Over the last 45 years, the US population grew 1.1%/y to

306M and its economy by 2.7%. Similar growth are expected
by 2014.
SOURCES: US Census Bureau, US Commerce Dept
Outlook 2010-2014
GDP to grow 2.5% (CAGR)
Construction to grow 4.3%, mainly from public works
2009 Stimulus Plan: $Bn140 in infrastructure, of which $50Bn into highways
Sept. 2010: Obama proposal for US$50Bn in transportation infrastructure
SOURCES: Italcementi estimates
Italcementi Group
158
From 1993 to 2006, the US cement market grew 3.7% a

year to 127 Mt. Since then it has fallen 45%. PCA forecasts
120 Mt in 2015
Cement consumption in USA (mainland)
150
Mt
127 Mt
1993/2006
120 Mt
100
PCA Sep 2010
forecast
2010-2015
1973/1993
1946/1973
70 Mt in
2009
50
1928/1946
1900/1928
0
1900
1915
1930
1945
1960
1975
1990
2005
2020
SOURCES: USGS, PCA
Italcementi Group
159
The Top 5 cement producers in North America have 63%

market share. ITC ranks 7 with 5% market share
Main
Competitors
Market share 2009

%
Rank
Lafarge
16
Recent moves
Minorities buy out
Holcim
14
Built 4 Mt/y Ste Genevieve on Mississippi
Heidelberg
13
Integrate Hansons volume
Cemex
12
Reduce costs post Rinker
Modernize Festus to 2+ Mt/y
Buzzi
Ash Grove
Italcementi
Votorantim
TXI
Titan
12
Vicat
13
Shut 11 kilns; modernize Martinsburg
SOURCES: Companys Annual Reports, ITC analysis
Italcementi Group
160
In North America, Italcementi is focused on cement

and located in the Northeast and Puerto Rico
Sales breakdown
Market presence
Other
5
RMC
17
78
Cement
% of 2009 total revenue
Italcementi Group
Puerto Rico
161
In the Northeast (total market cement capacity of 31.7 Mt),

Italcementi ranks second among 11 players
Geographical distribution
of plants and grindings
Essroc Area
2009
Capacity installed
in Essroc market area, 2009
7.3
Lafarge
Italcementi
5.3
4.2
Heidelberg
3.9
Votorantim
3.0
Cemex
2.6
Holcim
2.4
Buzzi
Titan
1.1
Eagle Materials
1.0
Cementos Portland
Amstrong
6.0 since end

2009 with
2.0Mt new
Martinsburg
line
0.6
0.3
Mt
SOURCES: ITC analysis
Italcementi Group
162
Italcementis network is based on 6 full-cycle plants,

2 grinding centers and 20 terminals
CT. QUEBECa)
2010 Preliminary Budget Sourcing
Montreal
PICTON
ESSEXVILLE
Osweg
o
Rocheste
r
Toronto
East Baldwin
Bow
Palmer
Chicago
Windsor
Bessemer
Clevelan
d
LOGANSPORT
MBO
Columbus
SPEED
40 RMC plants
3 aggregates pits
MARTINSBURG
Fairfield
Wilder
NAZARETH
Leetsdale
Baltimore
Frederick
Cement Plant
Grinding
Nitro
Richmond
Cement Terminal
Ciment Quebeca)
NPT News
Salisbury
200 mi
200 km
Charlotte
Smithfield
PUERTO RICO
a) Joint-venture in which ITC holds 50%
Italcementi Group
163
Revenue and EBITDA were severely affected

by the market slump
US$M
750
828
830
736
Revenues
559
EBITDA
161
196
174
78
a)
2005
IFRS figures
Italcementi Group
2006
2007
2008
2009
a) including US$14M of non-recurring charges
164
Since 2006, ITC significantly optimized its network,

reducing its total industrial costsa) by 20%...
Shut 11 kilns
4(b) in Nazareth in 2006
2(c) in Frederick in 2008
2(c) in Bessemer in 2009
3(c) in Martinsburg in 2009
Replaced 1.8 Mt obsolete

cement capacity by brand
new Martinsburg
production line
Reduced cost factors:

Heat consumption (th/t CK)
Power consumption (kWh/t CT)
Manpower (FTE, Cement business only)
2005
2010d)
1200
900
156
146
1348
883
Total closure of 2 plants (Frederick and Bessemer)

Resulting industrial savings (% of industrial costsa))
a)
Like-for-like on 2010 volume
b) Long dry process
c)
Wet process
d) Budget
Italcementi Group
20
165
and greatly improving its environmental footprint

Shut 11 kilns
4(b) in Nazareth in 2006
2(c) in Frederick in 2008
2(c) in Bessemer in 2009
3(c) in Martinsburg in 2009
Reduced environmental footprint:
Replaced 1.8 Mt obsolete

cement capacity by brand
new Martinsburg
production line
2005
2010d)
CO2 (kg/t CK)
1004
842
SOx (kg/t CK)
2.7
1.3
NOx (kg/t CK)
3.2
1.7
Fugitive Dust
13 ESPs(b)
b) Long dry process
Italcementi Group
c) Wet process
100% Baghouse
d) Budget
166
Over 6 years, Italcementi has significantly modernized

its industrial network
2005
Kiln technology
% of capacity
Kiln size
kt clinker/year
Kiln vintage
Year
Thermal
consumption
Mcal/t
Italcementi Group
Precalciner
Preheater
Long Dry
Wet
8%
2011
36%
43%
18%
47%
31%
10%
7%
365
39
1200
640
28
870
167
Italcementi benefits from good locations and can leverage

its modern plants on the East Coast
Strengths
Key plants well located to serve major markets, with good, long term
reserves
2 large modern plants on East Coast: Martinsburg and Nazareth
Low cost water distribution on Great Lakes
Strong package business/brand
Opportunities
Market growth opportunities in Martinsburg area

Speed and Picton still have opportunities for improvement
Further ready mix development
Leverage good rail connections to support market coverage
Potential new Federal Infrastructure program
Italcementi Group
168
Italcementis performance is expected to improve, thanks to

ongoing actions and planned investments
Main actions: 2010 to 2014
Increase sales
volume
Increase sales volume through market growth and better market
positioning
Develop terminal network to support market coverage
Improve
industrial
performance
Leverage full benefit of new Martinsburg and of modernized
Reduce logistic
costs
Optimize logistic flows, in order to address relevant markets

Develop rail transportation from Martinsburg
Sustainable
development
Adapt plants to upcoming environmental regulations (Hg, CO2)

Increase Alternate Fuels usage
Improve & Sustain Safety performance
Italcementi Group
Nazareth
Leverage increased labour productivity
169
Martinsburg, WV. Capacity: 2 Mt/y cement.

Thermal consumption: 760 MCal/t CK. 150 employees
Italcementi Group
170
Welcome to Agadir
Opening remarks
Italy
North America
Egypt
Morocco
India

Concluding remarks
Italcementi Group
171
Italcementi Group
Investor Event
Egypt
Suez plant (Egypt)
Italcementi
Group
Agadir 24-25
September 2010

September 2010
172
172
Egypt is experiencing a positive growing cycle driven by

political stability, economical reforms and internal consumption
Economic reforms implemented since 2004, including reduced corporate
income taxes, privatization, foreign trade and investment liberalization, and
increasing banking supervision, helped Egypt to pull through the global crisis
relatively untouched.
Egypt with 78 million inhabitants has the Arab worlds largest population and a
quickly expanding youth demographic.
2008
2009
2010
05-09
09-14
Actual
Actual
Forecast
CAGR
CAGR
Population growth (%)
1.8
1.8
1.6
1.8%
1.6%
Gross Domestic Product (% yoy)
6.0
4.6
4.5
5.5%
4.5%
Inflation (% annual average)
18.3
11.8
8.0
7.4%
6.6%
Construction (% yoy)
11.9
14.2
4.0
8.7%
6.2%
Sources: Italcementi and Business Monitor International
Italcementi Group
173
Construction sector growth has boosted cement

consumption
CAGR 2009-14
+5.7%
CAGR 2005-09
+13.9%
Grey Cement
Egypt Market
Volumes
Mt
28.5
30.1
34.5
38.5
2005
2006
2007
2008
Egypt grey cement market outlook

Structural demand (Mt)
48.0
49.6
53.1
56.3
59.7
63.2
2009
2010F
2011F
2012F
2013F
2014F
Cement final destination
Source: Ministry of Investment
Italcementi Group
174
Demand and supply balance has lead the government to

announce the issuance of new licenses for an increased
clinker capacity of almost 17mt within 2014.
2008
2009
2010
2014
Clinkerplantcapacity
41.3
43.0
47.1
59.9
(A)
Clinkerproduction
38.3
40.9
44.9
59.3
(B)
DomesticUtilizationRate
93%
95%
95%
99%
(B/A)
Demand
Clinkerdomesticconsumption
35.0
41.9
43.8
56.0
Clinkerbalance
3.3
1.0
1.1
3.3
Supply
Volumes/MT
Balance
Cement Market
Grey Clinker Supply / Demand Balance (Mt)
Source: Italcementi
Italcementi Group
175
Italcementi is the largest cement producer within

a fragmented supply market
Volumes 2009 in Mt
Italcementi
Market Share % 2009
11.7
Lafarge
9.6
Cemex
5.7
Titan
4.3
Cimpor
4.2
Sinai
3.5
NCC
3.1
MisrBeniSuef
1.9
Qena
1.8
SouthValley
0.9
Others
1.3
Misr Beni Suef

4,0%
NCC
6,4%
South
Valley
2,0%
Qena Others
3,7% 2,8%
Italcementi
24,4%
Sinai
7,3%
Cemex
11,9%
Cimpor
8,6%
Titan
8,9%
Lafarge
20,0%
Source: Ministry of Investment
Italcementi Group
176
Italcementi volumes and prices have risen steadily, but market

share has decreased because of additional capacity
30.6%
30.9%
Market Share
ITC Egypt
Volumes
M tons
14
12
10
8
6
4
2
0
28.3%
24.4%
1
2
30.1%
8,6
9,3
10,6
10,9
11,7
2005
2006
2007
2008
2009
5,9
6.1
H1 2009
H1 2010
ITC Egypt
OPC Bags Exwork price
EGP/t
2007
Italcementi Group
2008
2009
2010
177
To follow market growth trends, Italcementi invested

significantly in operational efficiency projects
Increased clinker and cement production by improving plant reliability
Decreased the clinker cement ratio by enlarging the product range
Decreased fuel consumption and improved fuel mix
Improved labour productivity
Implemented Group sustainable development policies with special focus on
environment and social responsibility
Italcementi Group
178
and the results are confirmed by the key performance

indicators
Cementproduction
production (kt/year)
Cement
(kt/year)
Clinker/cement ratio
Clinker/cement
ratio
13000
2007-2010= -2,8%
12500
= -1,4%
= -0,1%
12000
= -1,3%
11500
11000
10500
2007
2008
2009
2007
2010
2009
2010
Cement
Cementproduction/Staff
production/Staff
Fuel
FuelMix
Mix
(kton/FTE)
(kton/FTE)
100%
80%
60%
2008
44%
52%
GAS
48%
53%
4
40%
20%
56%
48%
OIL
52%
47%
2
0%
2007
2008
Italcementi Group
2009
2010
2007
2008
2009
2010
179
and the financial results (EGPm)

Rec. EBITDA
Revenue
1.910
2005
3.543
4.167
2006
2007
6.138
5.313
892
2008
2009
2005
1.602
1.783
1.915
2.030
2006
2007
2008
2009
Cash Flow
1.348
1.212
2006
2007
577
2005
1.584
1.736
2008
2009
IFRS compliant
Italcementi Group
180
Italcementis challenges in a fast changing environment

In a country where:
Less than 10 years ago, Egypt was an export oriented low-cost cement
producer: now it is importing and has production costs close to the
Mediterranean average
The cost of thermal and electrical energy nearly doubled together with raw
material costs in less than 24 months
Government intervention in the cement sector has been intense (licensing,
price monitoring, taxation, export ban, etc.)
Growth in cement consumption has been faster than expected
The Group should balance its growth portfolio
Italcementi has 3 main challenges:
Defend profitability
Respond to market needs
Balance geographical exposures
Italcementi Group
181
Actions to defend profitability

Continuous efficiency program aimed at raising:
Production by de-bottlenecking and improved reliability
Productivity by improving quality of personnel
Fuel energy optimization
Product portfolio
Vertical integration
Italcementi Group
182
Actions in response to market needs

Organic growth
Investment in a brown field site to replace old kiln technology at the Tourah
and Helwan plants (1mt/y) and increase capacity (1mt/y), in response to market
and efficiency needs and for proactive sustainable development action.
Total investment is expected to be in the region of 200-250 EURm and should

have an incremental EBITDA of approx 50 EURm/y.
Italcementi Group
183
Action to balance geographical exposure

To exploit Egypt as a platform for future investments in the region, as already
done in Kuwait for the cement and ready-mix operation.
Continuous scouting activities to capture the best development opportunities.
Italcementi Group
184
The financial health of Italcementi in Egypt is helping the

Group to achieve is objectives in the region
The strong Egyptian balance sheet combined with the positive

market outlook and steady cash flow generation contribute to the
accomplishment of the three mains goals and the growth plans for
the Egyptian subsidiary.
Italcementi Group
185
Welcome to Agadir
Opening remarks
Italy
North America
Egypt
Morocco
India

Concluding remarks
Italcementi Group
186
Italcementi Group
Investor Event
Morocco
Italcementi
Group
Agadir 24-25
September 2010
Title
187
187
Moroccos population is relatively young, mainly concentrated

in the north-west, and increasing moving to urban areas
Demographics and urbanization
Population
32.4m (45 inhab/Km2)
1.7%
1.4%
2003-07:
69.9 years
2008-12:
72 years
29% (0-14 years)
63% (15-64 years)
8% (>65 years)
Population 2007:
CAGR: 02-07:
07-12:
Life expectancy at birth:
Age pyramid (2007):
45000
Rabat
0.7
Casablanca
3.6
Agadir
0.4
Fes
0.7
Marrakech
0.7
Urbanization
(Rural and urban population trends)
40000
35000
70%
total
30000
25000
20000
urban
15000
5000
63%
CAGR 2012/25
Total:
1.1%
Urban: 2.0%
rural
10000
CAGR 2000/12
Total:
1.4%
Urban: 2.5%
46%
Largest city population (mln)
1986
1990
2000
Italcementi Group
2012
2025
188
Overall situation is positive with real GDP growth in recent

years and forecast for the next few years
Key indicators
Real GDP growth (%)
Gross fixed investment (% GDP)
Consumer price inflation (%)
a)
2011
a)
2005
2006
2007
2008
2009
2010
2012-14
3.0
7.8
2.7
5.6
4.9
4.0
4.0
4.5
27.5
28.1
31.2
33.0
30.7
32.0
32.0
32.0
1.0
3.3
2.0
3.7
1.0
1.1
2.2
2.4
a)
a) Forecasts
Sources of GDP
2009
16,8%
55,1%
Italcementi Group
28,1%
Agriculture
Services
Industry
189
Construction outpacing GDP growth in recent years driven by

real estate projects and infrastructure modernization under
implementation
Expenditure in EBITDA index 2002 = 100
Projects under implementation

Residential
Social housing programmes
Self-construction
Non-Residential
Growing demand for service buildings
(schools, hospitals, stadiums)
Commercial buildings
Financial centres
Tourist facilities: hotels, resorts,
entertainment structures
Residential and non-residential benefiting Civil Works/ Infrastructure

from low interest rate, private investment
Road/rail network
and governmental social housing program
Public transport
(with fresh tax benefits on home builders
Ports/airports
introduced with the 2010 budget)
Power generation
Increasing infrastructure
Water projects (including desalination)
Utilities
Investment in tourism development
Italcementi Group
190
Acceleration growth in cement demand over the last 7 years,

to 14.5 Mt in 2009
Cement demand since 1990
14.5 Mt
+ 3.4% vs. 2008
~450 kg pro capita
Kt
8.0%
CAGR
4.5%
3.4%
Italcementi Group
Acceleration boosted by:

2002: 50 DHM/t. cem. tax (100 from 2004)
to finance Social Housing Programme
2003: tax exemptions for social housing builders
191
mostly concentrated in the Northern and coastal part of

Morocco, with central regions growing very fast, and demand
mainly driven by residential activity
Cement demand breakdown
Breakdown by region
Tanger
Rabat
Casablanca
Settat - Ben Ahmed
2
3
Safi
Breakdown by final destination
Tetouan
Nador
Fes
Meknes
Beni-Mellal
Marrakech
Infrastructure
14%
Non residential
6%
Agadir
Cement demand
(2009, kt)
Top 5 regions in terms of

cement demand growtha)
a) CAGR 2009 vs. 2007

1- Tadla-Azilal:
2- Taza-Al Hoceima:
3- Fes-Bouleman:
4- Gharb-Cherarda:
5- Chaouia-Ourdigha:
Italcementi Group
+21.8 %
+20.6 %
+14.5 %
+13.5 %
+10.1 %
200-400
401-600
601-800
801-1000
1001-1200
1201-1400
1401-1600
>1600
Residential, 80%
(including civil engineering
for social housing programme)
192
18.8 Mt cement capacitya) in 2010, with the entry

of a new independent player
Cementplant
Grindingcenter
Capacitya) (2010, Mt)*

Lafarge:
ITC:
Holcim:
Cimpor:
Cimat:
Total:
6.3
5.7
4.0
1.2
1.6
18.8
Market share (2009, %)*

Lafarge:
ITC:
Holcim:
Cimpor:
41
26
24
9
a) Cement equivalent to clinker

* Ciments du Maroc estimates
Italcementi Group
193
Full utilization of Morocco cement plant capacity over

the last four years with the recent high domestic demand
resulting in a sharp fall in exports
Cement plant utilization ratea)
Cement & Clinker

exports less imports (kt)
a) Based on cement equivalent to clinker locally produced
Italcementi Group
194
... with long term 5% CAGR in structural demand,

thanks to favourable changes in cement demand drivers
Change in cement demand drivers
2009
14,5 Mt
16
Technological factors
Change in housing
characteristics
Increasing competitiveness of
cement vs. other building
materials
Introduction of new building
technologies
Change in building code
Improvement of concrete
quality
14
The cement sector has enjoyed buoyant growthin recent

years, having benefited from big infrastructure projects such
as the deepwater port on the Mediterranean, the development
of six new tourist resorts, important public housing programs,
and construction of roads, dams and power plants.
12
10
Demographic factors
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
Italcementi Group
Deficit of 1 million housing

units to recover
Decrease in emigration
Increase in transit migration
(becoming permanent settlers)
Increased return migration rates
195
Italcementi has developed a large industrial network

in the Southern region of the country ...
Cement plant
Grinding center
Plants:
ISO certificates:
4
9001 & 14001
Grinding centers:
Clinker capacity (kt):
3,920
Cement capacity (kt):
5,840
Sales volumes (2009, kt):
3,689
Market share (2009, %):
Italcementi Group
26
196
... reinforced by the new Ait Baha greenfield

Start-up:
2010
Clinker capacity (kt):
1,550
Cement capacity (kt):
2,200
ITC capacity increase:
+ 31%
Technology type:
dry (modern)
Self-production of power through heat

recovery
Achievement
33
years
ITCITC
team
work
years
team
work
Layout
Italcementi Group
197
Ait Baha plant: the most technological advanced, the biggest

kiln in the country, generating significant savings
Savings vs.. old Agadir plant

Heat consumption:
- 24%
Power consumption:
- 20%
Variable costs:
- 20%
Fixed costs:
- 10%
CO2 emissions:
- 15%
Italcementi Group
198
Investments are already engaged to improve the efficiency

of the other plants
Safi capacity:
+ 25 kt of clinker per year
Marrakech de-bottlenecking:
+ 60 kt of clinker per year
Laayoune wind farm (5 MW):

Savings of 1 EURm per year
Italcementi Group
199
An historical vertical integration in the ready-mix business with

a strategic presence in the largest cities of the Central region,
and in aggregates
Ready-mix business
Aggregates business
Market (2009, Mm3):
4.6
Market (2009, Mt):
Batching units:
23
Quarries:
Market share (2009, %):
17
Capacity (Mt):
2.7
Sales volumes (2009, Mm3):
0.8
Sales volumes (2009, Mt):
2.6
Italcementi Group
130.0
3
200
2009 full year snapshot on sales volumes

and recurring EBITDA
Cement (kt)
Aggregates (kt)
Ready-mix (km3)
-0.9%
-0.7%
-10.8%
Cement (EURm)
Aggregates (EURm)
Ready-mix (EURm)
Volumes
+41.2%
Recurring
EBITDA
-12.9%
Italcementi Group
-1.7%
201
Positive price effects and efficient procurement management

have generated a sharp rise in recurring EBITDA margin
versus 2008
350
70%
300
60%
250
50%
43.8%
200
43.0%
41.3%
37.9%
30.8%
150
40%
30%
100
20%
50
10%
0%
2005
2006
Turnover
Italcementi Group
2007
RecurringEBITDA
2008
2009
%RecurringEBITDA
202
Outlook and Actions

The new entrant to the cement market is challenging historical market shares
with pressure on sales prices
Strategic actions to consolidate our market share are currently defined and
ongoing
The shutdown of the Agadir plant is an upcoming issue, land propertie values
are a strategic opportunity
Other major investments for improving industrial efficiency are already planned
and/or launched (Safi, Laayoune wind farm, Marrakech plant
de-bottlenecking, alternative fuels)
The integration strategy between Cement and Materials continues to be
reinforced on a regular basis
The development of the ready-mix business as a strategic distribution channel
for cement in the medium/long term is a major priority
Italcementi Group
203
Conclusions
In 2010:
We shall exploit the benefits from the completion of the Ait Baha plant
We are improving our operating results
We will continue the optimization of working capital begun in 2009
In 2011:
We will begin industrial cement network rationalization
We will capture the full impact of the Ait Baha plant efficiency
We will significantly reduce the environmental impact of our cement plants
We will begin to reap the benefit of other industrial efficiency investments
A solid and efficient sustainable platform ready for new strategic developments
Italcementi Group
204
Welcome to Agadir
Opening remarks
Italy
North America
Egypt
Morocco
India

Concluding remarks
Italcementi Group
205
Italcementi Group
Investor Event
India
Yerraguntla :New Clinker Plant
Italcementi
Group
Agadir 24-25
September 2010
Title Investor Event 24-25 September 2010
206
206
The strong Indian economy can sustain long-term high growth

Key Growth Drivers
Strong demographics
Stable political environment
Internal demand driven; less export reliant
Healthy financial sector
Aggressive Infrastructure plan of 1,000$bn
(2013-17)
Million
Population & Urbanization rate
1500
1000
40%
500
30%
28%
26%
0
1991
2001
2008
2030
GDP 2030
GDP 2010
>1 $tn
17,0%
4-5x
14,0%
Urban
9,2%
9,3%
7,0%
6,5%
8,0%
8,0%
8,0%
8,6%
144
65
2006
2007
252
225
9,0%
7,5%
Rural
2008
2009
GDP%
Construction%
E2010
2010-14
80
97
161
180
201
117
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Infrastructure Plan XI & XII ($bn)
Source: ITC estimates, CMIE, EIU, World Bank, other analysts
Italcementi Group
207
Cement demand: housing and infrastructure to drive growth

Per capita consumption: great
potential
Demand evolution (mt)

350
+100mt
297
INDIA
2005-09 : 9.4% (actual)
2009-14 : 9.0% (forecast)
300
272
200
151
150135
164
179
193
229
210
1091
1000
800
600
53
59
62
42
47
0
2005
2006
2007
2008
2009
72
67
79
85
92
2011
2012
427
403
317
170
200
0
SOUTH
2005-09 : 10.6% (actual)
2009-14 : 8.3% (forecast)
2010
490
400
+30mt
100
50
1200
250
250
Kg/ Person (2009)
2013
China
2014
W.Europe
World
Japan
US
India
India Demand Source (2010-14)
South India demand is ~30% of All-India

Infrastructure
30%
Housing continues to be major growth driver

Infrastructure contribution 2014, +10% vs. 2009
Residential
55%
Nonresidential
15%
Source: ITC estimates, CMIE, JP Morgan, other analysts
Italcementi Group
208
Cement supply evolution: South leading capacity additions

Capacity (mt) year end (by region)
400
270
200
164
24
25
31
29
55
172
26
25
33
30
59
191
30
27
40
34
216
31
30
49
34
61
73
42
38
60
38
92
301
48
39
64
46
104
322
335 348
361
50
50
54
41
43
39
39
64
67
70
71
49
51
51
51
120
128
136
142
50
A strong wave of capacity

additions will take the total
India installed capacity to
~360mt by 2014 (+67% vs.
2008)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
South.
West
North
Central
23
13
145mt
22
69
East
Cumulated capacity addition (mt) (by region) 2009-14
South has attracted highest capacity additions

(~48%) following recent high profitable cycle
Most new entrants are also expected in South
Market.
18
Italcementi Group
209
South capacity utilization expected to drop to 73% by 2012

before starting to recover
93%
96%
97%
88%
86%
77%
74%
73%
74%
132
124
112
(million tons)
98
79
55
8
5
42
57
4
5
47
60
2
5
53
65
2
5
59
9
8
62
34
30
23
9
67
10
72
12
79
34
13
85
77%
Capacity Utilization
139
Estimated Available
Capacity
32
Unutilized Cap.
15
Net Exports
92
Demand
CAGR 09-14: 8.3%
10,0
0,0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
A long run of high saturation (2005-09) led to strong profits and cash flows for
the industry
Reinvestment by existing players plus new players have further fragmented
the market
Recovery expected from 2013 while possible consolidation moves can help
Italcementi Group
210
ITC in India : milestones

JAN 01 - Start-up of a 50 / 50 JV with KK Birla Group in Zuari Cement Ltd (ZCL)
Yerraguntla plant (South Andhra Pradesh), 2.2 MT capacity.
JAN 02 - Acquisition of Sri Vishnu Cement Ltd.
Sitapuram plant (Central Andhra Pradesh), 1.3 MT capacity.
JUN 06 - Zuari Cement becomes a 100% subsidiary of ITC.
JAN 07 - Sri Vishnu Cement merges into Zuari Cement.
MAY 07 - Launch of PRIMO premium cement.
MAR 08 - Sitapuram 43MW captive power plant startup
MAR10 - Commissioning of Yerraguntla second line, 2.0 MT clinker capacity
(to be followed by Chennai grinding centre ,1 MT cement by July2011)
Italcementi Group
211
ZCL: strongly rooted in the vast South India market with

potential to expand to East & Maharastra
2002
2009
2011
ZCL Capacity (mt)
3.5
3.5
6.0
South Market Share
6.8%
4.9%
5.7%
Recently commissioned
Yerraguntla brown-field
expansion and upcoming
Chennai grinding unit will boost
ZCL market share.
East markets
Maharashtra
Mumbai
20.9 M.inhab.
Hyderabad
6.2 M.inhab.
ITC Sitapuram
2009:1.3mt
ITC Yerraguntla
2009: 2.2mt
2010: 3,7mt
South India
Geographical expansion to high

potential secondary markets
(Maharashtra and East) helps to
increase volumes and improve
margins.
Italcementi Group
Bangalore
6.4 M.inhab.
Chennai
7.2 M.inhab.
Chennai GU
2011: 1,0mt
Main Cities
Full Cycle
Plant
Grinding
212
10 years of successful presence of ITC in highly competitive

South India
ITC entered India at the right time and, over a decade of continuous
improvements, has established a solid and profitable presence in one of the
most challenging and competitive environments.
This has been achieved through a predominantly indigenous management team
and a strong local focus
Industrial performance
65% local coal (cost advantage vs. competitors)
82 Kwh / ton of cement (-15% reduction)
30% decrease in work-force
Reinforced industrial footprint

43 MW captive power plant (Sitapuram)
Sitapuram railway connection
Yerraguntla 2nd line
Chennai grinding unit
~25M$ investments planned over 5 years to further improve industrial performance :
7M$ per annum in energy and fuels
Italcementi Group
213
Sustainable Development: a continuous commitment

Relentless improvement of Safety results
(zero frequency rate in 2009 and 2010)
2 CDM projects under certification process
(wet fly-ash)
Alternative fuels project under execution in
Yerraguntla
Continuous support to nearby communities in
schooling, medical assistance and
infrastructures
Potable water treatment plants covering 6
villages surrounding our plants
Green belt: 15,000 trees planted each year
~30M$ investment planned over next 5
years
Italcementi Group
214
Zuari Cement: from rookie to top brand position

Primary Market spanning most of South India (30% of
total India), with initial presence in Maharashtra (West)
and Orissa (East) to expand further
Traditional focus on Trade segment (60-70% of sales)
to optimize operations
Main cities Bangalore and Chennai as ZCL strongholds,
taking advantage of Yerraguntla proximity
Solid reputation in the market, aggressive brand-building
and leverage on ITC innovative products (TX planned
launch next year, followed by Transparent Cement)
Innovative advertisement (eg. Web 2.0 platform) and
customers retention schemes
Italcementi Group
215
ZCL performance: steady improvement in volumes

and brand positioning ...
3.507
3.600
3.100
3.252
CY (Jan-Dec)
3.258
3.240
2.925
2.657
2.600
2.244
2.280
2.100
1.693
1.600
1.100
600
100
-400
2002
2003
2004
2005
2006
Sales - Cement+Clinker (kt)
Brand
position
C+
Italcementi Group
B+
A/A+
2007
2008
2009
H1 2010
Price trend
A/A+
A/A+
216
supported by strong industrial performance

has enhanced profitability
Turnover
14000
EBITDA (%)
70,0%
CY (Jan-Dec)
12000
60,0%
10000
50,0%
8000
40,0%
6000
30,0%
4000
20,0%
2000
10,0%
0,0%
2002
2003
2004
2005
2006
Turnover (mINR)
Italcementi Group
2007
2008
2009
H1 2010
EBITDA %
217
and has made ZCL a consistent top financial performer in

the South
EBITDA % evolution (*)
CY (Jan-Dec) vs.. South market leaders
38,2%
37,6%
33,9%
34,7%
36,3%
35,0%
32,1%
34,0%
31,0%
31,8%
28,9%
25,4%
25,4%
24,8%
21,1%
11,9%
9,0%
2003
11,7%
Madras Cements
22,6% Zuari Cements
20,3%
15,2%
12,2%
12,7%
India Cements
10,4%
2004
2005
2006
2007
2008
2009
H1 2010
(*) Zuari: EBITDA adjusted for like to like comparison with competitors results
Competitors: local GAAP (source: BSE)
Italcementi Group
218
ITC: ready to grab opportunities for rapid growth

ITC is evaluating all the options (organic and inorganic ) to establish itself as a
leading player in the South and adjacent markets.
Organic
Mumbai
20.9 M.inhab.
Hyderabad
6.2 M.inhab.
Greenfield
Sitapuram
~ 2 Mt clinker/y
Yerraguntla
Second line
~ 2 Mt clinker/y
ZCL has ready options for brownfield (Sitapuram) and green-field

projects (North Karnataka)
Localize production in grinding
centers to allay logistic constraints
(Orissa in the East, Kerala/ Tamil
Nadu in the South , )
Second line
~ 2Mt clinker/y completed
Grinding center
Bangalore
6.4 M.inhab.
Chennai
7.2 M.inhab.
Grinding center (under evaluation)

Cement plant
Grinding centre (under construction)
New production facilities (under evaluation)
Major Metropolitan Areas
1Mt/y under
construction
Non organic
Despite recent fairly high priced
acquisitions , we expect valuations /
expectations to ease
Plenty of room for further
consolidation in South and
other adjoining regions
To diversify geographically, actively
considering opportunities beyond
current South markets
(Estimated Million inhabitants)
Italcementi Group
219
Welcome to Agadir
Opening remarks
2010-2014 forecast
Financial Policy
Concluding remarks
Italcementi Group
220
Group sales volumes by business expected

to grow by 3.7%-4.1%
Ready-mix volumes sold

Million Mc
Volumes, 2009-14
4.1%
13.7
11.2
Cement and clinker volumes sold
Million tons
2009A
66.8
11
12
55
13
Percentage of emerging
countries on total1
CAGR
13
2014
44
Aggregates volumes sold

Million tons
4.0%
2014
57
12
CALCESTRUZZI not included
55.7
10
11
39
3.7%
2009A
10
47.5
39.1
2009A
10
11
12
13
2014
14
CALCESTRUZZI not included
1 Excluding export and eliminations
Italcementi Group
221
CapEx to support future significant growth
EURbn
4.0
2.0
0.3
0.4
0.4
0.4
1.0
1.1
1.3
1.2
20052009
20102014
0.0
Sustainingandotherinvestments
Majorprojects
Strategyinvestments(w/omajor)
Performanceinvestments
3 EURbn; 10.7%
on cumulated
revenues
Italcementi Group
3.1 EURbn; 10.9%

on cumulated
revenues
222
Major projects included in the industrial plan

Bulgaria
Devnya
Egypt
Italy
cement capacity
Efficiency
Capacity
Sustainability
240 EURm
2010 - 2012
Wet Line
Relocation
Efficiency
Capacity
Sustainability
200 EURm
2012 - 2014
Efficiency
Rationalization
240 EURm
2011 - 2014
Capacity
100 EURm
2013 - 2014
. EURm
New Line
2.9 mt/y
2 Kilns
Revamping
India
New Line
Sitapuram
.....
Italcementi Group
..
223
Deliver significant recovery in economic performance

EBITDA, 2007-14 (EURm)
1,800
Further growth options and
capacity increase to be evaluated
Market share increase
in selected countries
1,400
Market volumes recovery
1,000
2007
EBITDA evolution with

industrial efficiencies1
08
09
Tight cost and cash

management (e.g. working
capital, etc.)
Postponement of some major
investments
10
11
12
13
2014

Continue with renewal of industrial footprint
through available cash flow (especially in the
second part of the plan)
Be ready to capture growth opportunities
Commissioning of the
renewed plants
(Bulgaria, Italy, ......Egypt)
1 Including effect of basic assumptions on prices and costs
Italcementi Group
224
ITC Group evolution in cement capacity, revenues

and EBITDA
1996
2000
2004
Industrial
Plan 2014E
2008
15%
35%
Cement
Capacity(*)
42 mt
55 mt
11%
14%
46%
68 mt
52%
55%
73 mt
~80mt
16%
Revenues
36%
43%
45%
46%
(after
eliminations)
14%
15%
21%
EBITDA
recurring
(*) Full capacity included for all shareholdings 33%
Italcementi Group
Mature countries
Emerging countries
Further growth options
225
In summary, based on scenario assumptions and action plan
Recovery of volume and profitability at pre-crisis level, but better operating

leverage thanks to higher efficiency of industrial network
cumulated cash flow from operating activities of ~4.4 EURbn

over next 5 years
total industrial investments over next 5 years at ~ 3

EURbn, leaving room
to take advantage of additional organic or

non-organic growth opportunities and/or
compensate for market downside risk
Italcementi Group
226
Welcome to Agadir
Opening remarks
2010-2014 forecast
Financial Policy
Concluding remarks
Italcementi Group
227
Financial Management Policy

Steady long term policy aiming to ensure support for the Groups long term growth
across cycles
Balance Sheet
Management
Coherent with BBB/Baa2 mid-cycle rating
Liquidity
Management
Italcementi Group
228

Steady long term policy aiming to ensure support for the Groups long term growth
across cycles
Dividend
Policy
Leverage /
Gearing
Debt Structure
Balance Sheet
Management
Sources
Diversification
Liquidity
Management
Term Structure
Liquidity
Support
Italcementi Group
229

Key metrics targets at mid-cycle within BBB/Baa2 expected ranges
Dividend
Policy
Target
Leverage /
Gearing
Balance Sheet
NetManagement
Debt / EBITDA
Debt Structure
2.0x 2.5x
Coherent with
BBB/Baa2
mid-cycle
rating
GCF
/ Net Debt
30%
35%
Sources
Diversification
Liquidity
EBITDA
/ Net Interest
Management
Net Debt / Total Equity
2009
2.5x
29.8%
> 6x
9.1x
Term Structure
< 70%
52%
Liquidity
Support
Italcementi Group
230

Moderate dividend policy at holding level to ensure preservation of appropriate
gearing and leverage
Dividend
Policy
Leverage /
Italcementi Payout
Ratio 2004-2009
Debt
Structure
Gearing
Normalized
payout
in the 25%
Balance Sheet
range at ITC level
75%
0.40
Management
0.36
0.36
70%
0.33
o Willing to significantly sacrifice
0.35
65%
0.30
absolute
DPS levels in lower part
Coherent with BBB/Baa2
mid-cycle
rating
60%
0.30
DPS (Ord)
55%
47%
50%
45%
Sources
Payout
Diversification
40%
35%
30%
25%
24%
23%
2004
2005
2006
25%
25%
0.18
38%
0.12
20%
15%
10%
Italcementi Group
2007
2008
2009
of the cycle
0.25
Liquidity Payout ratios progressively

Management
0.20
increasing at lower levels of Group
Term Structure
structure to maximize cash

upstreaming, allowing for CapEx0.10
Liquidity related debt servicing
0.05
Support o Listed operating subsidiaries
0.00
payout in 60-80% range
0.15
231

While our equity structure remains for the time being complex (two holdings),
we are determined to remove a key constraint to debt management
Dividend
Policy
Leverage /
Gearing
Balance Sheet
Significantly reduce structural subordination
Management
(to the 20-25% area)
Debt Structure
Sources
Diversification
Liquidity
Management
Term Structure
Liquidity
Support
Italcementi Group
232

while reaffirming long term policy commitments to rating agencies and
debt holders
Maintain a long-dated debt maturityDividend
profile
Policy
(>3 years at all times)
Leverage
/
Ensure significant
liquidity
back-up headroom
Gearing
(>2 years of debt maturities at Balance
all times)Sheet
Management
Debt Structure
Tap bond markets for approx 50% of total debt

and maintain strong banking relationships
Sources
Diversification
Liquidity
Management
Term Structure
Liquidity
Support
Italcementi Group
233
2010 Refinancing Plan

Beginning in Q1 2010, we launched a global refinancing plan that will reorganize
the Groups debt structure with several goals
Create synergies across
holding company levels
Tap financial markets on largest available funding

base ITC to be the market interface for the
Group, funding CF on interco basis
Remove structural
subordination
Historical two-tier approach to Group debt structure

was a negative in rating analysis for both ITC and
CF
Reinforce funding
sources diversification
Provide bond market access to ITC previously

relying exclusively on bank funding while CF was
the bond issuer
Reinforce liquidity
backup headroom
Safely bridge the Group towards a more favourable

phase of the business cycle
Mitigate liquidity
insurance cost increase
Right-size unutilized liquidity back-up lines to offset

higher fee levels due to new bank market
conditions
Italcementi Group
234
2010 Refinancing Plan

Execution of the plan is following a clearly laid out sequence that builds on each
steps success as precondition to the next
Refinance prepayment of CF USPP Notes
ITC Inaugural EMTN Issue
Replenish liquidity backups by refinancing

CFs outstanding CP and part of ITCs RCFs
ITC Syndicated Backup Facility
Replace 2012 CF Syndicated Backup RCF

and other maturing bilaterals
ITC Commercial Paper Program
Replace CF Commercial Paper program
ITC refinancing of
EURm500 CF 2017 Bond
Further reduce CF third party debt,

structural subordination
Italcementi Group
Q1
Q3
Q4
TBD
235
Debt Profile before and after the Bond issue Groupwide view
March bond issue was key first step in the plan, resulting in longer average debt
life and reduced structural subordination at Group level
Bonds outstanding were 40% of gross debt vs. 29% at 2009 year-end
Gross Debt Breakdown by Borrower
Gross Debt Breakdown by Borrower
as of 31/12/2009
as of 30/6/2010
EURm
EURm
3.500
3.500
3,165(*)
3.000
3,283(*)
Italcementi ex ITC Finance S.A. and CF Group
Italcementi ex CF Group
3.000
Ciments Franais Group
Italcementi Finance S.A.

1.059
2.500
1.137
2.500
Average Life: 4.1 years
2.000
2.000
1,020
1.500
193
477
445
217
813
772
643
201
477
351
257
1.500
64%oftotal
55
44%oftotal
1.000
2.028
1.000
231
70
500
789
0
Gross
Debt
0-1yr
1,355
761
1.451
500
2
191
1-2yr
743
330
327
147
118
176
41
2-3yr
3-4yr
4-5yr
103
12
528
3
198
439
228
232
38
123
25
1-2yr
2-3yr
3-4yr
4-5yr
0
5+ yr
Gross
Debt
0-1yr
539
5+ yr
(*)ExcludingMTMofderivativesinstruments
Italcementi Group
236
Liquidity Profile as is Groupwide view (as of June 30, 2010)

Long term debt issuance has not addressed back-up lines maturities, mostly at CF
Liquidity headroom nearing policy limit
Liquidity Backup vs. Maturing Debt*
Unutilized Backup Lines Maturity Profile

EURm
EURm
3.500
3.500
Italcementi ex ITC Finance S.A. and CF

Group
3.000
Available Backup Lines

Cumulated Matured Debt**
Available Backup lines + Eurozone Cash
3.000

2.500
2.000
2,456
2.500
670
150
511
800
330
195
420
2.6 years of
liquidity headroom
2.000
200
1.500
1.500
67%oftotal
1.000
1.000
1.636
500
(***)
100
150
261
0
Total
0-1yr
500
800
1-2yr
320
100
230
195
100
150
50
2-3yr
3-4yr
4-5yr
5+ yr
0
Y0
Y1
Y2
Y3
Y4
Y5
Y>5
(*)EURm373ofoutstandingBdT classifiedonBalanceSheetasL/Tdebtareshownhereas01yrmaturityfollowingratingagencyanalysis;unutilisedM/Tcreditlinesareshowngrossofthesameamount
(**)ExcludingMTMofderivativesinstruments(***)1yrswingline,additional150MstilloutstandingasCFlinereplacedinJuly
Italcementi Group
237
New ITCFIN Revolving Credit Facility

On September 22, we entered into a new RCF providing a fundamental shift in our
liquidity backup structure
Thanks to an effective transaction process we believe optimal terms have been
achieved, well inside preliminary indications received in April-June
Borrower
Italcementi Finance SA
Guarantor
Italcementi SpA
Bookrunners
8 core relationships (club deal)
Participants
8 additional core relationships
Tenor
5 years bullet
Amount
EURm 920 vs. EURm 800 minimum target
Financial
Covenant
Consolidated Net Debt / EBITDA: max 3.75x

Acquisition Event allows 12 month bump to max 4.0x
Italcementi Group
238
Liquidity Profile Proforma for New Transaction Groupwide view

Thanks to the new facility and the cancellation of short-dated lines,
80% of liquidity backup is now managed at top Group level with 3.9 years
of headroom
Liquidity Backup vs. Maturing Debt*
Unutilized Backup Lines Maturity Profile

EURm
EURm
3.500
3.500
Italcementi ex ITC Finance S.A.

and CF Group
3.000
Available Backup Lines

Cumulated Matured Debt**
Available Backup lines + Eurozone Cash
3.000
3.9 years of
liquidity
headroom
2.500
2.500
2,261

2.000
545
0
561
105
205
270
1,120
1.500
1.500
1.000
2.000
1.270
20%oftotal
100
500
446
0
Total
350
(***)
111
25
80
205
0-1yr
1-2yr
2-3yr
3-4yr
150
1.000
920
500
50
270
4-5yr
5+ yr
Y0
Y1
Y2
Y3
Y4
Y5
Y>5
(*)EURm 373ofoutstandingBdT classifiedonBalanceSheetasL/Tdebtareshownhereas01yrmaturityfollowingratingagencyanalysis;unutilisedM/Tcreditlinesareshowngrossofthesameamount

(**)ExcludingMTMofderivativesinstruments(***)ProformafornewswinglinessignedinJuly
Italcementi Group
239
Financial Management - Conclusions

A pivotal year to reinforce our financial policies to prepare the ground for the
execution of our industrial strategic plan
Dividend
Policy
Leverage /
Gearing
Balance Sheet
Management
Debt Structure
Sources
Diversification
Liquidity
Management
Term Structure
Liquidity
Support
Italcementi Group
240
Welcome to Agadir
Opening remarks
Concluding remarks
Italcementi Group
241
In summary: focus on efficiency, sustainability and

innovation in an uncertain and volatile scenario (1/2)
Conservative macroeconomic scenario and demand recovery still uncertain
and volatile in the medium term
Decoupling of growth pattern between Emerging markets (still growing) and

Mature (delayed and slow recovery in most economies)
Price scenario still uncertain with increasing pressure in selected markets

Risk of a double dip not to be ruled out
Key actions focused on delivering recovery of Groups economic performance,
enhancing environmental sustainability and generating financial resources for
the next wave of development
Selected investments to upgrade plant technology and environmental

sustainability coupled with continuous improvement of industrial efficiency
Research and Innovation to improve technologies and product portfolio

Marked improvement of Group organizational performance
Italcementi Group
242
In summary: selective approach to development

opportunities with flexibility to withstand market downside
risks (2/2)
Selective approach to development options in light of the available cash
Industrial network restructuring in mature domestic markets (e.g.: Italy,

Bulgaria, France initial steps)
Mix of options (expansion CapEx and bolt-on acquisitions)

To capture growth in domestic emerging markets (e.g.: Morocco, India, Egypt
and China/Shaanxi)
To enter new emerging markets, also to capture synergies with current
presence
Ability to withstand the negative impact of a possible further worsening of the

macroeconomic scenario and associated market downside risk by:
Continued tight cash management (maintenance CapEx and operating

working capital)
Continuous alignment of current capacity and capacity expansion projects to

the specific dynamics of each market
Italcementi Group
243
A concrete plan in a fragile planet
Italcementi Group
244
Disclaimer
This presentation contains forward-looking statements regarding future events and future results of Italcementi and its
affiliate Ciments Franais that are based on the current expectations, estimates, forecasts and projections about the
industries in which Italcementi and Ciments Franais operate, and on the beliefs and assumptions of the management
of Italcementi and Ciments Franais. In particular, among other statements, certain statements with regard to
management objectives, trends in results of operations, margins, costs, return on equity, risk management,
competition, changes in business strategy and the acquisition and disposition of assets are forward-looking in nature.
Words such as expects, anticipates, scenario, outlook, targets, goals, projects, intends, plans, believes,
seeks, estimates, as well as any variation of such words and similar expressions, are intended to identify such
forward-looking statements. Those forward-looking statements are only assumptions and are subject to risks,
uncertainties and assumptions that are difficult to predict because they relate to events and depend upon
circumstances that will occur in the future. Therefore, actual results of Italcementi or of its affiliate Ciments Franais
may differ materially and adversely from those expressed or implied in any forward-looking statement and neither
Italcementi nor Ciments Franais does assume any liability with respect thereto. Factors that might cause or
contribute to such differences include, but are not limited to, global economic conditions, the impact of competition, or
political and economic developments in the countries in which Italcementi and Ciments Franais operate. Any
forward-looking statements made by or on behalf of Italcementi or of Ciments Franais speak only as of the date they
are made. Neither Italcementi nor Ciments Franais does undertake to update forward-looking statements to reflect
any change in their expectations with regard thereto, or any change in events, conditions or circumstances which any
such statement is based on. The reader is advised to consult any further disclosure that may be made in documents
filed by Italcementi with Borsa Italiana S.p.A (Italy) and by Ciments Franais with the Autorit des Marchs Financiers
(France).
The Manager in Charge of preparing Italcementi SpA financial reports, Carlo Bianchini, hereby certifies pursuant to
paragraph 2 of art. 154-bis of the Consolidated Law on Finance (Testo Unico della Finanza), that the accounting
disclosures of this document are consistent with the accounting documents, ledgers and entries.
This presentation has been prepared solely for the use at the meeting/Analyst Meeting with investors and analysts at
the date shown below. Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation
to buy or a solicitation of an offer to buy securities of any kind in any jurisdiction where such an offer, solicitation or
sale should follow any registration, qualification, notice, disclosure or application under the securities laws and
regulations of any such jurisdiction.
Italcementi Group
245

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Italcementi Group

Ait Baha (Morocco) cement plant

Investor Event 24-25 Title

Investor Event 24-25 September 2010

Ait Baha (Morocco) cement plant

Investor Event 24-25 Title

Morocco plays a major role in Africa thanks to free trade

Investor Event 24-25 September 2010

Political and cultural milestones

Investor Event 24-25 September 2010

Souss Massa Draa: one of the most important regions

Investor Event 24-25 September 2010

Key economic indicators (2009)

Gross fixed investment (% GDP):

Expatriate remittances (EURbn):

Tourism revenues (EURbn):

Public deficit (EURbn):

Standard & Poors

Ciments du Maroc: an old and successful story

a) Controls Safi plant construction

Investor Event 24-25 September 2010

Ciments du Maroc: a listed company with a shareholders

ADFD: Abu Dhabi Fund For Development

Caisse de Dpt et de Gestion

* Through Ciments Franais

Investor Event 24-25 September 2010

Agadir plant: the birth place of Ciments du Maroc

Investor Event 24-25 September 2010

Ait Baha greenfield: the last major investment, increasing

Investor Event 24-25 September 2010

Investor Event 24-25 September 2010

When we last met in Sept. 2008 we were anticipating

making medium term

Two shockwaves have halted a

According to most analysts, the

Resurgent inflation and reduced

However, restoring confidence

World growth rates will remain

We promptly responded with a specific framework

Tight control on CapEx but priority on strategic investments

Strong reduction of Working Capital

Reinforced our financial structure

Investor Event 24-25 September 2010

and leveraging on our well balanced geographical

2nd -15% (*)

2009 Revenues: Breakdown by Geography

Market Share in regions

Other Emerging Markets,

Source: Italcementi analysis based on brokers reports

Investor Event 24-25 September 2010

We rank 5th among international cement players

SOURCE: Bloomberg; Company Reports

Investor Event 24-25 September 2010

with a clear focus on cement

SOURCE: Company data; annual reports

(*) Calcestruzzi not included

Investor Event 24-25 September 2010

and a fairly good profitability

SOURCE: Italcementi; Company reports

Investor Event 24-25 September 2010

A still adverse short/medium term setting

Investor Event 24-25 September 2010

Macroeconomic and construction cycle