1

Rodolfo Danielli

Chief Operating Officer

Milano, February 23rd , 2006

India: the Italcementi India: the Italcementi experienceexperience

2

Index

Italcementi GroupItalcementi Group

Indian PresenceIndian Presence

The Indian MarketThe Indian Market

3

18

8

1

19 Countries

62 Cement plants

12 Grinding centres

570 Concrete plants

TOTAL GROUP

152 Quarries

4 Terminals (one of which is also grinding center)

Over 20.000 Employees (*)

FRANCE

BELGIUM ITALYEGYPT (*)

BULGARIA

ALBANIANORTH AMERICA (U.S.A./CANADA)9

1

5

1

MOROCCO3

1

17

3

SPAIN

3 37

9

9

1

193

81

1 11

3

246

52

5

8

2

TURKEY

4

1

18

1

1

CIPRUS (**)

2

1

2

3

351

GAMBIA

MAURITANIA

1

1

1

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)

4

...with an organisation focused on four strategic areas...

CEOCarlo Pesenti

CEOCarlo Pesenti

StaffStaff

North AmericaNorth America EuropeEurope MENA a)MENA a)AsiaAsia

- India

- Thailand

- Kazakhstan

- Italy

- France

- Belgium

- Spain

- Greece

COORodolfo Danielli

COORodolfo Danielli

- Morocco

- Egypt

- Turkey

- Cyprus

- Bulgariab)

StaffStaff

StaffStaffStaffStaff

- United Staes

- Canada

- Puerto Rico

Mature

Emerging

a) Middle East North Africab) Included in MENA for consistency with Italcementi Group strategic portfolio

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a) full capacity included for participation > 33%,

Million tons

94%94%

> 20

1992

42%

> 45

47%

11%

1997 2007

42%

> 70

27%

31%

2002

Emerging countries

Other mature countries

Italy

~ 50%

~ 50%

...and a perspective of further growth in emerging markets...1992-2007 Influenced Cement Capacity a)

6

KazakhstanShymkent Cement

ThailandAsia Cement

IndiaZuari Cement (JV 50%)

...particularly in Asia where the Group already operates in Kazakhstan, India and Thailand (at 30/06/2005)

7

Index

Italcementi GroupItalcementi Group

Indian PresenceIndian Presence

The Indian MarketThe Indian Market

8

India is the second largest national cement market worldwide, driven by an emerging economy and a buoyant population …

Source: macroeconomic data, EIU January ’05cement data, Cement Manufacturers Ass.

Companies: 55

Cement sector ‘04:

Plantsc): 127

Production Capacityc) (mt): 146

Cement Consumption:

- million tons:

- Kg/inhab:

119,4c)

110

Population: 1.080 m

GDP per head: 610 US $

GDPa) CAGR ’99 - ’04: 5,7 %

GFIb) CAGR ’99 - ’04: 6,9 %

Pop. CAGR '99-'04: 1,5%

a) Gross Domestic Productb) Gross Fixed Investmentc) CMA plants with production capacity > 200 kt, 2005 est. 131 mt

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...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)

100

130

160

190

220

1993-94 1996-97 1999-00 2002-03

AgricolturaCostruzioniIndustriaServiziPIL

Agricolture

Construction

Industry

Services

GDP

GDP at cost of factors by origin (index 1993-94=100)

Source: Ministry of Statistics

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...and is expected to further grow due to high development rates and infrastructure programs...

Infrastructures development

supported by private/public

partnerships:

National Highway Development

Plana)

National Marine Development

Programb)

Airports development c)

Relaunch of railways d)

Legenda Stato avanzamento lavori al 30 novembre 2005 Golden quadrilater*: NS & EW corridor: Lavori completati Lavori in corso Progetti da assegnare * Completato al 90%. Fonte: Governo indiano

Legenda Stato avanzamento lavori al 30 novembre 2005 Golden quadrilater*: NS & EW corridor: Lavori completati Lavori in corso Progetti da assegnare * Completato al 90%. Fonte: Governo indiano

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

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... with a positive impact on cement demand growth in the medium and long termIndia cement demand, mt/year

0

20

40

60

80

100

120

140

160

180

200

Actual data Structural Curve

Long term expected growth

CAGR 5,5%

Period CAGR%

1973 - 83 6,71983 - 93 7,21993 - 03 7,6

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Index

Italcementi GroupItalcementi Group

Indian PresenceIndian Presence

The Indian MarketThe Indian Market

13

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 1.950 kt

Net Sales 2005: USD82,6m

Sitapuram

January 2002: acquisition (through Zuari Cement) of Sri Vishnu Cement (Sitapuram)

Capacity 1.250 kt

Net Sales 2005: USD39,5m

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...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

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India: India: a successful integration and a successful integration and

an increasingly bright futurean increasingly bright future