0 Rodolfo Danielli Chief Operating Officer Milano, February 23 rd, 2006 India: the Italcementi experience

1 Index Italcementi Group Indian Presence The Indian Market

Countries 62 Cement plants 12 Grinding centres 570 Concrete plants TOTAL GROUP 152 Quarries 4 Terminals (one of which is also grinding center) Over Employees (*) FRANCE BELGIUM ITALY EGYPT (*) BULGARIA ALBANIA NORTH AMERICA (U.S.A./CANADA) MOROCCO SPAIN TURKEY CIPRUS (**) GAMBIA MAURITANIA KAZAKHSTAN INDIA SRI LANKA THAILAND GREECE (*) N° employees in the consolidated area (*) including 2 plants of Asec Cement, consolidated from August 2005 (**) Not consolidated on a line-by-line basis The Group has secured a worldwide presence... (at 30/06/2005)

3...with an organisation focused on four strategic areas... CEO Carlo Pesenti CEO Carlo Pesenti Staff North America Europe MENA a) Asia - India - Thailand - Kazakhstan - Italy - France - Belgium - Spain - Greece COO Rodolfo Danielli COO Rodolfo Danielli - Morocco - Egypt - Turkey - Cyprus - Bulgaria b) Staff - United Staes - Canada - Puerto Rico Mature Emerging a) Middle East North Africa b) Included in MENA for consistency with Italcementi Group strategic portfolio

4 a) full capacity included for participation > 33%, Million tons 94% > % > 45 47% 11% % > 70 27% 31% 2002 Emerging countries Other mature countries Italy ~ 50%...and a perspective of further growth in emerging markets Influenced Cement Capacity a)

5 Kazakhstan Shymkent Cement Thailand Asia Cement India Zuari Cement (JV 50%)...particularly in Asia where the Group already operates in Kazakhstan, India and Thailand (at 30/06/2005)

6 Index Italcementi Group Indian Presence The Indian Market

7 India is the second largest national cement market worldwide, driven by an emerging economy and a buoyant population … Source: macroeconomic data, EIU January ’05 cement data, Cement Manufacturers Ass. Companies: 55 Cement sector ‘04: Plants c) : 127 Production Capacity c) (mt): 146 Cement Consumption: - million tons: - Kg/inhab: 119,4 c) 110 Population: m GDP per head: 610 US $ GDP a) CAGR ’99 - ’04:5,7 % GFI b) CAGR ’99 - ’04:6,9 % Pop. CAGR '99-'04: 1,5% a) Gross Domestic Product b) Gross Fixed Investment c) CMA plants with production capacity > 200 kt, 2005 est. 131 mt

8...with a construction sector showing solid growth, overcome in recent years only by the growth of Services...  Construction sector accounts today for 5% of Indian GDP  Strong growth in recent years driven by non-residential (incentives to FDI)  Increasing weight of residential (easier access to financial credit, strong development of major cities) Agricolture Construction Industry Services GDP GDP at cost of factors by origin (index =100) Source: Ministry of Statistics

9...and is expected to further grow due to high development rates and infrastructure programs... Infrastructures development supported by private/public partnerships:  National Highway Development Plan a)  National Marine Development Program b)  Airports development c)  Relaunch of railways d) a)Creation of 52 thousands km of new highways and modernisation of secondary roads b)Modernisation of 180 Indian ports c)New airports (Hyderbad, Bangalore) and modernisation of existing (New Delhi, Bombay) d)New 9 thousand km railway corridor

10... with a positive impact on cement demand growth in the medium and long term India cement demand, mt/year Long term expected growth CAGR 5,5%

11 Index Italcementi Group Indian Presence The Indian Market

12 Italcementi plants in South India Italcementi invested USD120m since 2001 to acquire 2 plants with 3,2 mt capacity and a 7% a) - 8% b) share of the South India market... a) on total market b) on CMA market Yerraguntla  January 2001: acquisition of 50% of Zuari Cement (Yerraguntla)  Capacity kt  Net Sales 2005: USD82,6m Sitapuram  January 2002: acquisition (through Zuari Cement) of Sri Vishnu Cement (Sitapuram)  Capacity kt  Net Sales 2005: USD39,5m

13...with the aim to further develop its presence in the country  It has taken time to fully assimilate the complexities of operating in the country (challenging cement market, strong price pressure, changing fiscal environment)  The high expertise of local human resources allows today to maintain only one expatriate as General Manager in the organisation, and various plans are underway to capitalise Groupwide on Indian resources  Several important industrial investments are underway: - 40 MW steam coal power plant - second clinker line in Yerraguntla - grinding centre in Chennai  The Group is continuosly seeking opportunities for further growth in the Country through acquisitions

14 India: a successful integration and an increasingly bright future