1. U.S. Construction & Cement Outlook: 2006 NIRMMA February 6, 2006 Delray Beach, Florida Edward J. Sullivan Staff Vice President and PCA Chief Economist

2. Anatomy of Growth: Illinois 2001 Total 4.162 MMT Residential.829 MMT : (20%) Nonresidential.649 MMT: 16%) Public 2.666 MMT: (64%) 2005 Total 4.163 MMT (0.0%,2005) Residential 1.127 MMT : (27%) Nonresidential.588 MMT: (14%) Public 2.421 MMT: (58%) 2009 Total 4.621 MMT Residential.963 MMT : (21%) Nonresidential 0.795 MMT: (17%) Public 2.863 MMT: (62%) 0.001 MMT 0.298 MMT -.061 MMT -.245 MMT 0.457 MMT -0.164 MMT.207 MMT.441 MMT

3. Key Points of Analysis U.S. Economic Outlook Construction Outlook Cement Outlook Residential Nonresidential Public Demand Operating Conditions Demographic Outlook

4. Economic Outlook: 2007-2009

5. Real GSP Growth: Illinois Annual Percent Change U.S.

6. U.S. & Regional Demographic Outlook

7. US Population Thousands of Persons US Population Adds Roughly 40 million People by 2020 …and 8 million by 2007

8. Demographics & Connection to Construction Activity: 2005-2009 Population Adds 14 Million Persons Population Adds 14 Million Persons Adds 420,000 School Age Persons Adds 420,000 School Age Persons Education Construction Education Construction Adds 3.2 Million Retirement Age Persons Adds 3.2 Million Retirement Age Persons Medical Medical Adds 4.7 Million Households Adds 4.7 Million Households Housing, Retail & Infrastructure. Housing, Retail & Infrastructure.

9. Population Growth Rate: Illinois Annual Growth Rate United States

10. Net Migration Growth: Illinois (000) Persons

11. Demographics 2005-2009: Illinois Population Adds 270,000 Persons Population Adds 270,000 Persons Addition of 13,000 School Age Persons Addition of 13,000 School Age Persons Education Construction Education Construction Adds 64,000 Retirement Age Persons Adds 64,000 Retirement Age Persons Medical Medical Adds 141,000 Households Adds 141,000 Households Housing, Retail & Infrastructure. Housing, Retail & Infrastructure.

12. Population Share of Total US: Illinois Share of Total United States, %

13. Cement Per Capita: Illinois Cement Tons Per Thousand Persons, Based on 2000-2004 Average

14. Demographics Only: Illinois Tons Added Annually Due to Expanding Population Total Population Change X Constant Five Year Average Cement Per Capita

15. Construction & Cement Outlook Overview

16. Single Family Construction: Illinois Permits # of units

17. Multi-Family Construction: Illinois Permits # of units

18. Home Appreciation: Illinois Annual Percent Change

19. Ratio of Home Prices to Income: Illinois Annual Growth Rate Comparison 20 Year U.S. Average

20. Residential Cement Consumption: Illinois Metric Tons

21. Nonresidential Cement Consumption: Illinois Metric Tons

22. Public Cement Consumption: Illinois Metric Tons

23. Cement Outlook: Illinois Metric Tons