LAFARGE REPUBLIC INC. POSTS 15% TOTAL SALES REVENUE INCREASE IN 2012, RECORDS 1 BILLION PESO PROFIT IN Q1 2013

Manila, May 28 2013 – Lafarge Republic Inc. (LRI) reported during its Annual General Stockholders meeting that its consolidated 2012 sales revenue amounted to Php 19.9 Billion, a 15% increase over the previous year. LRI cited innovative sales and marketing campaigns as major contributors to the growth which was achieved despite of one-off reliability issues with key equipment during the first half of the year.

The increase matched the impressive growth that the industry experienced in 2012 with nationwide demand reaching 18.4 Million metric tons (MT) or 18% higher than that of 2011. According to LRI President Renato C. Sunico, “This is the first time in the history of the industry that the nationwide demand exceeded 16.0 Million MT. The infrastructure and other construction projects of the Government both at the national and local levels coupled with the sustained demand from the private and commercial sectors contributed to this record growth.”

LRI similarly recorded an increase in consolidated net profit to Php 2.8 Billion for the same year. This increase was attributable to the growth of the domestic cement industry and improvement of cement prices allowing LRI to partly recover the increase in manufacturing inputs such as power, raw materials and logistics costs.

Sunico cited several innovations that the company implemented including the introduction of a new product Lafarge wallMASTERTM, an advanced masonry cement that quickly gained acceptance in the individual housing, residential and commercial building markets. With wider coverage, less wastage and smoother finish, wallMASTERTM improves productivity, resulting to lower overall costs for contractors and developers.

Construction of the feeding system for Refuse-Derived Fuel (RDF) in the Bulacan, Norzagaray and Teresa plants were completed and became operational in 2012. RDF is produced by separating the combustible components of Municipal Solid Wastes (MSW) which is then processed into shredded and plastic-wrapped bales that can be safely and efficiently transported to the cement plants and used as alternative fuel, while simultaneously manufacturing cement, in a single combined operation called “co-processing”. Benefits of increased use of alternative fuel include, lower emissions of greenhouse gases, maximized energy recovery from wastes and lesser use of fossil fuels, such as coal and oil.

Sunico reported that capitalized expenditures during the year were for additional capacity mainly the revamping of Danao Plant, Lafarge Iligan’s Pre-heater Project, and for the RDF feeding systems mentioned above.

Sharing his outlook, Sunico foresees continued growth in cement demand which LRI is better placed to meet with last year’s investment for additional 1 Million MT in cement milling capacity in 2013. He also announced approval by the Board of Directors to invest on a new mill at Teresa Plant which will have capacity to produce 850 K MT per annum, starting 2015. In the meantime, various productivity improvement projects are expected to deliver additional capacity to supply the estimated continuing increase in cement consumption.

LRI recently released its first quarter results for 2013 reporting sales of almost Php 6 Billion and with a net profit of Php 1 Billion for the period, a 35% increase from that of the same period last year. Net sales improved due to increase in volume and improvements in the average selling price.


LAFARGE IN THE PHILIPPINES

Lafarge has an established presence in the Philippines through Lafarge Holdings (Philippines), Inc. and its associated companies – Lafarge Republic, Inc., Lafarge Iligan, Inc., Lafarge Mindanao, Inc., Batong Angono Aggregates Corporation and Lafarge Cement Services (Philippines), Inc. Combining the strength of the global presence of Lafarge with the solid reputation of its local affiliates, Lafarge associated companies are reshaping the construction landscape in the Philippines with their innovative building solutions. They offer the widest range of top-quality cement, aggregates and other building materials under the brands Republic, Fortune, Mindanao, Rapidset, Portland Duo, and Wallmaster to meet the growing needs of an increasingly sophisticated construction industry.

With a national manufacturing footprint composed of 5 cement plants, a cement terminal, and an aggregates quarry, operated by 1300+ skilled professionals, Lafarge in the Philippines is committed to a vision of helping build green communities for a better quality of life. Additional information is available on the website at www.lafarge.com.ph

LAFARGE GROUP

A world leader in building materials, Lafarge employs 65,000 people in 64 countries, and posted sales of €15.8 billion in 2012. As a top-ranking player in its Cement, Aggregates and Concrete businesses, it contributes to the construction of cities around the world, through its innovative solutions providing them with more housing and making them more compact, more durable, more beautiful, and better connected. With the world’s leading building materials research facility, Lafarge places innovation at the heart of its priorities in order to contribute to more sustainable construction and to better serve architectural creativity.

Since 2010, the Lafarge Group has been part of the Dow Jones Sustainability World Index, the first global sustainability benchmark in recognition of its sustainable development actions. More information is available on Lafarge’s website: www.lafarge.com





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