The document summarizes and discusses the proposed Lafarge-Holcim merger, the influence of declining oil prices on alternative fuels, and the future of alternative fuels. Key points include: - The Lafarge-Holcim merger aims to create a global leader with $27 billion in revenue and presence in 90+ countries by achieving $1 billion in synergies. Up to 15% of assets may need to be divested. - Declining oil prices are driven by increased US production from fracking and higher overall production exceeding energy demand. Lower oil prices could reduce costs of alternative fuels like coal. - In the past, large drops in oil prices have led to reductions in alternative fuel usage. However

1. Page 1MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH
Oil sinks below 50 US$/Barrel, Holcim – Lafarge Merger
What will be the future of Alternative Fuels ?
9th Global Cemfuels Conference & Exhibition on
alternative fuels for cement and lime
16th – 17th of February 2015, Dubai

2. Page 2MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
I. Lafarge Holcim merger - an update
II. Oil price collapse - influence on alternative fuels
III. Summary and outlook
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Presentation contents

3. Page 3MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Lafarge Holcim merger
• The merger aims to create a group with €27b pro-forma
revenue present in ninety countries on all continents
• The companies target operational EBITDA synergies of
ca. €1b plus financial savings and capex benefits
• They anticipate that to satisfy regulatory requirements
they will have to make divestments equivalent to around
15% of revenue (ca. €5b) and 10-15% of EBITDA
• The companies expect two thirds of the divestments (by
revenue) to come from developed markets, the majority
of which in Europe
• Innovation on a larger scale is a key driver behind the
merger, to create new solutions to tackle the challenges
of sustainable construction
• The merger, if successfully executed as planned, will
create a global company with market share outside
China of ca. 14%
• It will put Lafarge Holcim into the league with two
Chinese cement giants
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Largest global cement producers
Company Country
Cement
volume
2013 (mt)
1CNBM China 285
2LafargeHolcim* Switzerland/ France 234
3Anhui Conch China 228
Holcim Switzerland 139
LafargeHolcim France 137
4HeidelbergCement Germany 91
5Sinoma China 89
6CR Cememt China 75
7Cemex Mexico 65
8Shanshui China 63
9Jidong China 56
10Italcementi Italy 43
11Ultratech India 41
12Votorantim Brazil 38
13Buzzi Unicem Italy 27
14Semen Indonesia Indonesia 26
15Eurocement Russia 22
*assuming disposal of 15% of pre-merger total

4. Page 4MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim merger | Influence of fossil fuel prices on AF | Summary
Lafarge Holcim - before merger
Sources for data of specific energy consumption, clinker factor, cement production capacities:
Annual Report Registration Document Lafarge 2013
Sustainability Report Holcim 2013
Holcim at a Glance
Company / Group Country
Capacity
(Mt/yr)
Substitution Rate
2012
(%)
Substitution Rate
2013
(%)
Cemex Mexico 96 24.7 28.4
Heidelberg Cement Germany 118 21.4 21.7
Buzzi Italy 45 17.5 19.1
Votorantim* Brazil 57 6.3 14.8
Italcementi Italy 74 5.5 9.4
Lafarge France 159 13 17.2
Holcim Switzerland 142 12.5 12.8
CRH before Lafarge /
Holcim aq.
Ireland 12 20.1 21.2*

5. Page 5MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Lafarge Holcim - after merger
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Clinker capacities and alternative fuels:
Cement Group
Clinker production
capacity
Substitution rate
2013
Spec. energy
consumption 2013
Equivalent to
alternative fuel at
4000 kcal/kg
Mt/yr % kcal/kg clinker Mio. Mt/yr
Lafarge 159 17.2 874 6
Holcim 144 13.7 828 4.1
After Lafarge/ Holcim
merger
303 15.6 852 10.1

6. Page 6MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Lafarge Holcim merger - sales
Group Plant
Clinker pr.
MT/yr
in 2013
Holcim Brazil Cantagalo 1.19
Holcim Brazil Pedro Leopoldo 1.91
Holcim Brazil Barroso 1.2
Holcim Canada Mississauga 2.9
Holcim Canada Joliette 1.34
Holcim France Rochefort Plant 0.7
Holcim France Lumbers Plant 0.75
Holcim France Heming Plant 1
Holcim Hungary Hejocsaba Plant Miskolc 0.62
Holcim Serbia Novi Popovac 1.4
Holcim Slovakia Rohoznik Plant 1.5
Holcim Slovakia Turna Plant 1.5
Holcim US Trident 0.43
total: 13 16.44
Group Plant
Clinker pr.
MT/yr
in 2013
Lafarge Germany Wössingen 0.8
Lafarge Germany Karsdorf 2.3
Lafarge Republic Inc
Philippines
Norzagaray Plant 1.7
Lafarge Republic Inc
Philippines
Bulacan Plant 0.45
Lafarge Republic Inc
Philippines
Batangas Plant 1.5
Lafarge Republic Inc
Philippines
Teresa plant 1.87
Lafarge Romania Hoghiz Plant 1
Lafarge Romania Medgidia Plant 2.1
Lafarge Tarmac UK Tunstead Cement Plant 0.8
Lafarge Tarmac UK Aberthaw Works 0.55
Lafarge Tarmac UK Cookstown Works 0.5
Lafarge Tarmac UK Dunbar Works 1
total: 12 14.57

7. Page 7MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Lafarge Holcim - after merger
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Sources for data of specific energy consumption, clinker factor, cement production capacities:
Annual Report Registration Document Lafarge 2013
Sustainability Report Holcim 2013
Holcim at a Glance
Company/ Group Country
Capacity
(Mt/yr)
Substitution
Rate 2013
(%)
Substitution
Rate 2015
(%)
Cemex Mexico 96 28.4 ?
Heidelberg Cement Germany 118 21.7 ?
Buzzi Italy 45 19.1 ?
Votorantim* Brazil 57 14.8 ?
Italcementi Italy 74 9.4 ?
Holcim / Lafarge Switzerland / France 271.99 12.8 / 17.2 < 10% est.
CRH new capacity Ireland 43.01 > 30%

8. Page 8MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Oil price drop - influence on AF?
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015
YearlyBasketPricein$
Year
Oil Price Development
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary

9. Page 9MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Oil price reduction - why?
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Fracking USA

10. Page 10MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Oil price reduction - why?
 Oil production higher than energy demand
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Country 1970 1980 1990 2000 2007 2008 2009 2010 2011 2012
part in
%
2012
accumulated
in % 2012
1.Saudi- Arabia 192.2 509.8 342.6 455 492.4 513.5 462.7 466.6 525.8 547 13.3 13.3
2.Russia 307 546.7 515.9 323.3 491.3 488.5 494.2 505.1 511.4 526.2 12.8 26.1
3.USA 533.5 480.2 416.6 352.6 309.8 304.9 328.6 339.9 352.3 394.9 9.6 35.6
4.China 30.7 106 138.3 162.6 186.3 190.4 189.5 203 203.6 207.5 5 40.7
5.Canada 70.1 83.3 92.6 126.9 158.6 155.9 156.1 164.4 172.6 182.6 4.4 45.1
6.Iran 191.6 74.2 162.8 189.4 209.6 213 204 207.1 205.8 174.9 4.2 49.4
7.VAE 36.9 84.2 107.5 123.1 140.7 142.9 126.3 131.4 150.1 154.1 3.7 53.1

11. Page 11MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Oil price reduction - why?
 Oil production higher than energy demand
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Source: www.eia.gov

12. Page 12MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015 Page 12
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Influence of oil prices
Source: www.cmegroup.com

13. Page 13MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Influence of oil prices - on coal prices
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Countries
Clinker production
capacity
Substitution rate
2013
Spec. energy
consumption 2013
Equivalent to
alternative fuel at
4000 kcal/kg
Mio Mt/yr % kcal/kg clinker Mio Mt/yr
China 2400 0.4 920 2.2
ROW 1719 1.5 850 5.5
World 4119 1.9 891 17.4

14. Page 14MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Influence of oil prices - on AF substitution
1.475.105.032
1.464.510.674
1.363.585.476
1.252.065.919
1.100.000.000
1.150.000.000
1.200.000.000
1.250.000.000
1.300.000.000
1.350.000.000
1.400.000.000
1.450.000.000
1.500.000.000
Baseline: Coal 1,9 20 40
CO2[t/a]
Reduction of fossil CO2 emissions
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary

15. Page 15MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Influence of oil prices - on AF substitution
Simulation Tool
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Kiln data
Total clinker production
World
[t/a] 4,119,000,000
Specific heat consumption [kcal/kg clinker] 891
Heat consumption [Gcal/a] 3,670,029,000
Thermal Substitution
Baseline Substitution scenario
coal RDF Remaining coal
Net calorific value [kcal/kg] 6,200 4,000 6,200
Dosage fuels [t/a] 591,940,161 17,432,638 580,693,298
Heat portions [Gcal/a] 3,670,029,000 69,730,551 3,600,298,449
Substitution rate [%] 1.9%
Costs [US$/t] 65 35 65
[US$/a] 38,476,110,484 610,142,321 37,745,064,385
Savings [US$/a] 120,903,778

16. Page 16MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Influence of oil prices - on AF substitution
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Reduction of Biomass substitution after „crash“ in 2008:

17. Page 17MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Influence of oil prices - on AF substitution
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Significant AF downturn in 2008:

18. Page 18MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Influence of oil prices - on AF substitution
Significant AF downturn in 2008:

19. Page 19MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Influence
Source: Deutsche Bank, Thomson Reuters

20. Page 20MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Influence??????
Major 0il Exporters' Fiscal Constraints
All figures USD
Country
Approximate
break- even price
Percent of
government
revenue from oil
Current reserve in
billions
Bahrain $137 87% $5.3
Iran $137 44% $100
Kazakhstan $66 54% $27.7
Kuwait $71 79% $32.2
Libya $148 99% $100
Nigeria $128 64% $39.5
Oman $105 87% $65.0
Qatar $72 33% $43.5
Russia $102 30% $443.8
Saudi Arabia $95 89% $740.3
UAE $75 76% $68.2
Venezuela $140 45% $20.6
Source: www.stratfor.com

21. Page 21MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Fossil Fuels versus Alternative Fuels Scenario
Alternative fuel shares presented exclude the additional energy requirement for CCS. The CO2 storage figures presented here
are based on capture potentials. Additional analysis is needed to verify the storage potential in different regions.
Source: CEMENT ROADMAP EIA/ WBCSD
Canada and United States BLUE low demand BLUE high demand India BLUE low demand BLUE high demand
Technologies 2015 2030 2050 2015 2030 2050 Technologies 2015 2030 2050 2015 2030 2050
Energy use (Mtoe) 12.4 11.4 12.3 12.2 11.3 14.2 Energy use (Mtoe) 19.4 29.9 47.4 19.6 33.6 60.1
Share of alternative fuel use 8% 21% 37% 9% 22% 38% Share of alternative fuel use 13% 23% 33% 15% 27% 35%
Clinker to cement ratio 0.90 0.85 0.81 0.90 0.84 0.81 Clinker to cement ratio 0.77 0.73 0.71 0.77 0.72 0.72
CO2 captured (Mt) 0 4.9 21.5 0 9.3 43.0 CO2 captured (Mt) 0 23.7 99.8 0 28.8 173.1
European Union 25 BLUE low demand BLUE high demand Other developing Asia BLUE low demand BLUE high demand
Technologies 2015 2030 2050 2015 2030 2050 Technologies 2015 2030 2050 2015 2030 2050
Energy use (Mtoe) 15.5 13.3 13.7 16.5 15.7 19 Energy use (Mtoe) 24.7 35.1 51.2 26.3 39.4 64.5
Share of alternative fuel use 17% 28% 39% 18% 30% 40% Share of alternative fuel use 11% 21% 34% 15% 28% 35%
Clinker to cement ratio 0.76 0.73 0.69 0.76 0.72 0.71 Clinker to cement ratio 0.78 0.72 0.7 0.78 0.72 0.73
CO2 captured (Mt) 0 4.3 20.7 0 9.4 69.8 CO2 captured (Mt) 0 21.4 100.2 0 21 150.6
Other OECD Europe BLUE low demand BLUE high demand Economies in transition BLUE low demand BLUE high demand
Technologies 2015 2030 2050 2015 2030 2050 Technologies 2015 2030 2050 2015 2030 2050
Energy use (Mtoe) 2.7 3.3 3.9 2.9 3.9 5.4 Energy use (Mtoe) 14.7 12.7 10.8 17.9 15.2 16.2
Share of alternative fuel use 19% 30% 39% 21% 30% 40% Share of alternative fuel use 14% 22% 35% 7% 16% 37%
Clinker to cement ratio 0.82 0.80 0.80 0.78 0.72 0.73 Clinker to cement ratio 0.77 0.74 0.72 0.77 0.74 0.72
CO2 captured (Mt) 0 1.7 5.5 0 4.6 3.7 CO2 captured (Mt) 0 1.5 12.9 0 4.1 19
OECD Pacific BLUE low demand BLUE high demand Latin America BLUE low demand BLUE high demand
Technologies 2015 2030 2050 2015 2030 2050 Technologies 2015 2030 2050 2015 2030 2050
Energy use (Mtoe) 9.7 8.2 7.5 10.3 9.5 10.7 Energy use (Mtoe) 14.5 18.4 26.4 14.4 18.5 32.7
Share of alternative fuel use 12% 23% 35% 13% 24% 35% Share of alternative fuel use 16% 25% 39% 16% 25% 40%
Clinker to cement ratio 0.83 0.77 0.72 0.82 0.76 0.72 Clinker to cement ratio 0.73 0.71 0.7 0.73 0.71 0.72
CO2 captured (Mt) 0 4.0 15.8 0 7.2 38.2 CO2 captured (Mt) 0 9.7 49.7 0 11.8 73.3
China BLUE low demand BLUE high demand Africa and Middle East BLUE low demand BLUE high demand
Technologies 2015 2030 2050 2015 2030 2050 Technologies 2015 2030 2050 2015 2030 2050
Energy use (Mtoe) 118.2 66.1 53.3 118.8 85.6 76.9 Energy use (Mtoe) 25.5 30.5 47 26.4 35.3 68
Share of alternative fuel use 8% 20% 36% 8% 14% 34% Share of alternative fuel use 11% 22% 33% 14% 25% 35%
Clinker to cement ratio 0.72 0.69 0.68 0.71 0.69 0.7 Clinker to cement ratio 0.82 0.77 0.74 0.81 0.76 0.76
CO2 captured (Mt) 0 25.0 82.0 0 40.3 236.8 CO2 captured (Mt) 0 8.4 97.1 0 21.5 158.7

22. Page 22MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Source: EIA / WBCSD

23. MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015 Page 23
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Oil price forecast: US
U.S. Energy Prices
U.S. Energy Information Administration, Short-Term Energy Outlook - January 2015:
2014 2015 2016
Jan Feb May Jun Dec Jan Feb Mar Aug Dec Jan Apr Jul Aug Dec
Crude Oil (dollars per barrel)
West Texas Intermediate Spot
Average
94.62 100.82 102.18 105.79 59.29 46 46 47 57 67 66 71 73 73 72
Brent Spot Average 108.12 108.9 109.54 111.8 62.34 49 49 50 60 70 70 75 77 77 76
Imported Average 89.63 96.04 98.44 100.17 55.79 42.5 42.5 43.5 53.5 63.5 62.5 67.5 69.5 69.5 68.5
Refiner Average Acquisition
Cost
93.52 99.32 100.57 102.45 58.29 45 45 46 56 66 65 70 72 72 71
Liquid Fuels (cents per gallon)
Refiner Prices for Resale
Gasoline 260 270 295 300 161 134 143 152 174 171 173 211 217 215 183
Diesel Fuel 298 309 299 297 191 166 170 171 187 213 215 232 234 234 228
Heating Oil 306 305 288 288 189 171 168 164 170 209 213 218 220 218 226
Refiner Prices to End Users
Jet Fuel 299 299 297 295 187 164 165 167 180 208 211 226 226 228 223
No. 6 Residual Fuel Oil (a) 248 253 242 242 175 139 128 121 142 165 162 167 174 178 175
Retail Prices Including Taxes
Gasoline Regular Grade (b) 331 336 367 369 254 215 213 219 241 239 241 280 288 288 254

24. MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015 Page 24
Commodity market
40,00
70,00
100,00
130,00
160,00
190,00
Jan '07 Jan '08 Jan '09 Jan '10 Jan '11 Jan '12 Jan '13 Jan '14 Jan '15
$US nominal, 2010=100
Energy
Metals
Agriculture
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary

25. Page 25MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
• Holcim Lafarge merger will loose significant volumes of AF in developed
markets
• AF knowledge transfer to ?
• Oil price decrease will have a significant impact on alternative fuels projects
especially in the MENA region
• First AF investment already “on hold” due to favourable coal/ fossil fuel prices
• Sustainable waste management systems by producing AF / RDF will not be
feasible at such low fossil fuel prices
• 1,2 €/ GJ “all in price” max feasible price for emerging markets
• Slow down in AF / energy efficiency in the cement industry in 2015/2016
| Content | Lafarge Holcim Merger | Influence of fossil fuel prices on AF | Summary
Summary

26. Page 26MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
The most comprehensive compendium of alternative
fuels and raw materials for the cement and lime industry
Special Conference
Discount!

27. Page 27MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Leading consultant company in alternative fuels and energy
Advise in “Sustainable Development”
Project development for municipalities in production of alternative fuels
Project development for cement industries (worldwide) in using of AF as
environmental friendly and cost-effective energy - independently
Supply Chain Management
Technical support in AF implementation (engineering)
Project management
Engineering and development of WTE plants
WTE, waste processing and AF facilities acquisitions due diligence reports
Energy Efficiency concepts
What do we do?

28. Page 28MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Consultancy
• Waste processing plants
• Waste management strategies
• Alternative fuel implementation
• Environmental impact
assessment
• RDF dosing/feeding systems
• Quality management
• CDM
• Engineering of WTE facilities
• Sustainable development
• Aluminum industry
• Utility industry
• Mergers & acquisitions
• Energy efficiency concepts
Supply Chain
Management
• RDF supply by vessels and trucks
• Organising logistics solutions
• Stock management
• Permitting process for
transfrontier shipments
• Biomass supply
• Deliveries to cement plants since
1986
• More than 250.000 tons of RDF
/year supplies
Development
We are interested in participating
in different AF project through:
• Own investment
• JVs
• Minority shareholding with the
management contract for
operating the plant
Collaboration for AF projects
• Supplier side
• User side
Business Activities

29. Page 29MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Some references

30. Page 30MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Experience in AFR since more then 25 years!!

31. Page 31MVW Lechtenberg Projektentwicklungs- und Beteiligungsgesellschaft mbH 16th - 17th of February 2015
Thank you for your attention!!