Presentation to the analysts and investors - Lafarge
Presentation to the analysts and investors - Lafarge
Presentation to the analysts and investors - Lafarge
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20<br />
III - In What Conditions Could <strong>the</strong> Current Slow Down<br />
Significantly Impact our Industry?<br />
� It would take <strong>the</strong> combination of<br />
• An important amount of very low cost homeless <strong>to</strong>ns that are easily transportable<br />
• And deflationary trends in several markets at <strong>the</strong> same time<br />
� However, we see several positive fac<strong>to</strong>rs offsetting this<br />
� Dem<strong>and</strong><br />
• Price <strong>and</strong> availability of steel bars makes finished concrete cheaper, spurring growth<br />
• Backlog of big developers is a sign of resilience : Vinci, Bouygues, Siemens, Als<strong>to</strong>m<br />
• <strong>Lafarge</strong> position streng<strong>the</strong>ned with cus<strong>to</strong>mer loyalty, br<strong>and</strong>ing <strong>and</strong> innovation<br />
� Costs<br />
• Energy costs still his<strong>to</strong>rically high, making it difficult <strong>to</strong> lower selling prices<br />
dramatically<br />
• USD evolution increases costs for importers<br />
• Many players have invested at high costs <strong>and</strong> with high indebtedness<br />
• Cost of working capital<br />
� Supply<br />
• Cement producers already lowering capacity