Affordable Housing

November 2014

Affordable Housing

Our definition “Housing for people who do not have access by usual financial ways to decent housing” Emerging countries: 4 billion people (“Base of the pyramid”) Developed countries: 150 million people without decent house conditions

Our objective: build new markets for Lafarge and improve housing conditions Part of our 2015 Innovation & Transformation Programme Part of our Sustainability ambitions: improving housing conditions for 2 million

people by 2020

A dedicated team in Paris and local projects embedded within the marketing teams of Lafarge subsidiaries

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A business and social opportunity

A unique business initiative across the industry which improved the housing conditions of 120,000 people in 2013

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Our 4 types of business initiatives

MICROFINANCE EARTH&CEMENT

SLUM REHABILITATION MASS AFFORDABLE HOUSING

• Customer issue: Individual home builder’s access to finance

• Our solution, based on our cement bags retailers network: Providing access to credits & technical assistance (catalogues of house designs and bill of quantities,)

• Customer issue: looking for durable solution without concrete• Our solution: Mix of cement and soil to produce non burnt

clay bricks, keeping asthetic and thermal inertia of earth construction

• Customer issue: looking for good waterproof solution• Our solution: Bagged concrete supplied to small

customers in informal settlements

• Customer issue: quality & speed of large scale projects• Our solution: Lafarge works with developers to improve

quality & speed of construction.

18 countries with Affordable Housing projects

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Affordable Housing Microfinance offer - Zambia

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Housing MicrofinanceA Complete Housing Solution for Individual Home Builders

Access to financing Technical assistance

Access to Retailers Construction solutions

Site Visits & Building Plans

Complete Housing Solution

Professional advice from Architects

Concrete blocks offer

Modular houses for

bit-by-bit construction

Roofing solutions

Trained & competitive Microfinance Institutions

For home extensions & renovation

For new homes or bit-by-bit construction

Pick-up of materials

Availability of products & prices checked

Trained to basic construction technical

assistance

Cost estimates (Bill of Quantities)

Funding and / or technical assistance

Customer

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Technical assistance

Partner Retailers

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Benefits for Lafarge• Creates a new

market• Contributes to the

social development of low income families

Benefits for the Customer

• Access to top quality technical assistance,

• Ability to generate new income

• A more comfortable life

Benefits for the MFI• Introduces to customers

a needed and financially-beneficial product

• Creates a strong positive impact

• Provides product diversification

• New customers carefully selected

Our approach of Housing Microfinance Creating projects in partnership with MFIs

and building material retailers

In September 2013, Lafarge Zambia launched its ‘Program for Housing Microfinance’, with BancABC as the first partner

Materials including

Lafarge cement bags

Partner(Microfinance) Bank

AchievementsAchievements

Project Launch September 2013

Number of Micro Credits to date 819

Financial Partners •BancABC•Madison Finance •ZNBS

Client Profile• Name: Kelvin Kanyumbu• Married with 2 children • Borrowed for completion of

House and building of a small shop

• Kelvin is a security officer and wife is a trader

Our first client

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Affordable Housing Mass Housing

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Mass Affordable Housing

Innovative construction system for multiple storey housing allowing construction modularity

Project currently developed with a municipality near Bordeaux, a social housing promoter and an architect.

Support from Lafarge to the architect on technical specifications.

Development of such new construction systems could take the form an investment in architects

New social housing in developed economies: e.g. in France

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Mass Affordable Housing

Situation

Government & developers are looking for new construction solutions to Build faster Social Housing projects Improve the quality & perception of such

projects (aesthetic, durability)

Lafarge approach

Identification & test of construction systems to optimize cost, speed, quality and durability

Research Center in France & Construction Development Labs

Facilate implementation of such projects Lafarge Construction Specialists in countries Ready-mix business line

Addressing the needs for Social Housing in emerging countries

Illustrations

Integrated structural formwork

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