1. Connect With Concrete Residential Outlook: 2010-2014 Ed Sullivan, Chief Economist PCA International Homebuilders’ Show January 2010 Named Most Accurate Forecaster By Chicago Federal Reserve, 2009

2. Connect With Concrete Residential Cement Consumption Thousand Metric Tons - 29.6 MMT 55% of Total Cement Consumption decline is attributed to residential Residential sector’s adverse impact on cement consumption has run its course.

3. Connect With Concrete Upside Risk?  PCA’s projections lie below consensus estimates by a significant margin.  May imply upside risks to cement consumption…but perhaps less than suggested by the consensus.  Differences in assessments and assumptions regarding potential hurdles facing housing :  Interpretation of current optimism – recent data.  Expected labor market gains & timing.  Potential of a payback arising from federal homebuyers tax credit.  Assessments regarding foreclosure activity.  Pricing recovery for new homes.  Mortgage assessments.

4. Connect With Concrete Criteria For Starts Recovery

5. Connect With Concrete Ingredients for a Starts Recovery Inventory no higher than 5 months supply Price stability Carry costs erode expected ROI. Weaker the price increases…lower the months supply trigger point. Homebuilders Expected ROI

6. Connect With Concrete Point One: Labor Markets Slowly Add Jobs

7. Connect With Concrete Sub-Prime Financial Crisis Energy Labor Markets 2006 2008 2007 2009 2010 State Deficits Economic Adversity Abates Mid-2010

8. Connect With Concrete Job Recovery: Past Recessions - Change, Thousands of Jobs 1980-1982 Recession 2000-2001 Recession 1990-1991 Recession Current Recession

9. Connect With Concrete Point Two: Federal Taxpayer Credit - Payback

10. Connect With Concrete Recent Sales Increase: Real ?  Sales are accelerating!  Reduces months’ supply and creates new optimism.  Incentives work – particularly in the context of uncertainty.  Seasonally adjusted annual home sales pace 17% higher than remainder of 2009 in the three months preceding scheduled November expiration.  Estimated Impacts of Federal Homebuyers Tax Credit:  2009 = +200,000 2010 = +180,000  Factoring out credit = Sept-Nov 4.9 million SAAR (+5.5%)

11. Connect With Concrete Federal Homebuyer Tax Credit Incentive Incentives Expand the market Pull Forward Existing Buyers Enhances affordability & brings in want to be buyers on the margin. Changes purchase timing. No expansion. Implies payback. 1/3 125, 000 2/3 255,000

12. Connect With Concrete Payback?  Implies payback begins in July.  Will the private sector fundamentals be strong enough to maintain sustained improvement in sales?  Labor markets just beginning to add jobs.  Potential for a moderation or stall in sales momentum during second half 2010.  4% to 8% drag on second half sales.

13. Connect With Concrete Point Three: Foreclosure Activity Accelerates

14. Connect With Concrete Foreclosure Assessments  Current Status:  Foreclosures up 18% over 2008 levels.  But…foreclosure rates improve August-November…leading to optimism.  Large December reversal.  Outlook:  Unemployment will worsen and replaced by tepid job growth in second half of 2010.  Roughly 25% of mortgages “underwater”  Private & public moratoriums end.  Huge backlogs will wind down.

15. Connect With Concrete Foreclosures Accelerate Foreclosure Impacts Add to Inventory Depress Prices 2.8 Foreclosures in 2009. 871K Bank possessions. Equates to one out of every 5 homes on the market. Depressed Homebuilder ROI Adds supply. Bank owned properties discounted. Pressures new home prices. Longer carry costs. Lower revenues. Erodes expected ROI. Delays recovery in starts.

16. Connect With Concrete Mortgage Delinquency 90 Days + Source: FRB California, Nevada, Arizona & Florida = 28%+ of housing market

17. Connect With Concrete Point Four: Financing Issues Remain

18. Connect With Concrete Bank Charge-Offs versus Unemployment Rate - % Loans Charged-Off, % Unemployed

19. Connect With Concrete More Favorable Lending: Slow Process Risk Aversion Remains high as long as nonperforming loans increase. Weak price performance. Slow gains in labor market. High lending risk. Tight lending standards. High Risk premiums. Fed gradual withdrawal. Higher rates? Begins 2 nd half 2010

20. Connect With Concrete Summary

21. Connect With Concrete Reasons to Bridle Current Optimism  Slow labor market recovery.  Potential payback from federal homebuyers tax credit.  Increased foreclosures.  Heightened price pressures from bank possessed properties.  Continued tight lending standards.  Potential for interest rate increases.

22. Connect With Concrete Point Five: Pent-up Demand Generated

23. Connect With Concrete 000 Starts Single Family Housing– United States Pent-Up Demand Interest Rates low, Decline in Home Price, Job Recovery Translate into Improved Affordability

24. Connect With Concrete 000 Starts Single Family Housing– Pent-Up Demand Pent-up demand released when economy stabilizes – resulting in large percentage gains..

25. Connect With Concrete Point Six: Longer Term Environment Favors ICF

26. Connect With Concrete Oil Prices Dollars per Barrel

27. Connect With Concrete Per Home, Lifetime C02 Savings ICF Home Over Frame Co2 Metric Tons, Per Home Additional C02 Emitted by Cement Production Total Heating & Cooling C02 Saving: 92 Tons per Home Conservatively Assumes 50 Year Life of Home

28. Connect With Concrete ICF & Related Systems: CO2 Savings Metric Tons of CO2 Gains Achieved Though Energy Savings In Space Heating & Cooling 2030: Housing Starts Average 1.9 Million Annually. ICF & Related Systems Reach 30% Market Share 10% of Total Housing Starts 20% 25% 30%

29. Connect With Concrete Potential “Green” Gains: ICF & Related Systems Incremental Gains in Cement Consumption, Metric Tons 2030: Housing Starts Average 1.9 Million Annually. ICF & Related Systems Reach 30% Market Share 10% of Total Housing Starts 20% 25% 30%

30. Connect With Concrete Concluding Remarks

31. Connect With Concrete Residential Outlook: 2010-2014 Ed Sullivan, Chief Economist PCA International Homebuilders’ Show January 2010 Named Most Accurate Forecaster By Chicago Federal Reserve, 2009