Heidelberg Materials AG

Quarterly Report • Aug 13, 2007

Half-Year Financial Report January to June 2007

• Group turnover rises by 12.5 % to EUR 4.8 billion
• Significant improvement in operating income
• Hanson shareholders approve recommended cash offer
• New Managing Board position established
• Expansion in Russia, China and Turkey

Overview January - June 2007
EURm	April - June		January - June
	2006	2007	2006	2007
Turnover	2,532	2,750	4,276	4,811
Operating income before depreciation (OIBD)	624	691	814	974
Operating income	498	561	562	720
Additional ordinary result	39	792	61	829
Results from participations	55	89	82	107
Earnings before interest and income taxes (EBIT)	592	1,442	705	1,656
Profit before tax	535	1,375	603	1,536
Profit for the financial year	378	1,223	415	1,342
Group share	346	1,194	375	1,303
Investments	142	3,400	304	3,639

Group interim management report

General economic environment

After a good start to 2007, the global economic environment remained continuously positive over the past few months. The slowdown of growth in the US, which resulted from the weakness of the housing market, had no noticeable impact on the dynamics of the international economic environment.

HeidelbergCement further on course for growth

During the first half of the year, HeidelbergCement's cement and clinker sales volumes rose by 12.5% to 41.1 million tonnes (previous year: 36.6). Excluding consolidation effects, the increase amounted to 5.0 %. The growth was strongest in the Asia-Africa-Mediterranean Basin Group area, followed by Europe-Central Asia. In North America, our sales volumes decreased only slightly in the second quarter.

Deliveries of ready-mixed concrete across the Group increased by 3.3 % to 14.7 million cbm (previous year: 14.2); sales volumes of aggregates rose by 8.2 % overall to 48.1 million tonnes (previous year: 44.5).

In the first six months, Group turnover grew by 12.5% to EUR 4,811 million (previous year: 4,276). Negative exchange rate effects resulting from the strong euro outweighed the growth from new consolidations. Excluding currency and consolidation effects, turnover increased by 13.5 %. Operating income before depreciation (OIBD) improved by 19.7%, reaching EUR 974 million (previous year: 814). An increase of 28.1% was recorded in operating income, which amounted to EUR 720 million (previous year: 562). By far the biggest contribution to the improvement in results came from Europe-Central Asia. Despite a decline, operating profit of the North America Group Area remained at a high level.

The additional ordinary result of EUR 829 million (previous year: 61) is heavily characterised by the sale of our participation Vicat. The inclusion of Hanson PLC for the first time as an associated company and the pro rata profit for the financial year achieved by Vicat led to an overall increase of EUR 24.2 million in results from participations, which amounted to EUR 106.7 million. The change of EUR -17.8 million in the financial results is essentially attributable to the additional financing required for the Hanson acquisition. Sustained growth and one-off effects, particularly in the second quarter, led to a profit before tax of EUR 1,536 million (previous year: 603). Taxes on income increased by EUR 6 million to EUR 194 million (previous year: 188). The disproportionately small increase in taxes is due to the below-average taxation of capital gains and the further reduction in Group tax rate. The profit for the financial year improved to EUR 1,342 million (previous year: 415). The Group share in profit more than trebled to EUR 1,303 million (previous year: 375). Without consideration of the additional ordinary result from the sale of our stake in Vicat, Group share in profit rose by 35 % to EUR 508 million (previous year: 375).

The balance sheet total increased by EUR 3.4 billion to EUR 15.7 billion in the first half of 2007. The increase in shares in associated companies amounting to EUR 2.6 billion mainly results from the purchase of 27.6 % of the shares in Hanson PLC and the sale of our investment in Vicat. The increase in trade receivables by EUR 0.3 billion to EUR 1.4 billion reflects the seasonal nature of our business. The changes in shareholders' equity and liabilities result mainly from the cash capital increase of EUR 0.5 billion, the profit for the financial year of EUR 1.3 billion and the increase in interest-bearing liabilities of EUR 1.5 billion.

Takeover of Hanson PLC

On 15 May 2007, HeidelbergCement submitted a formal cash takeover bid to all shareholders of the British building material manufacturer Hanson PLC for the acquisition of their shares at the price of 1,100 pence per share. This bid values Hanson at around GBP 8 billion (approximately EUR 11.7 billion). Hanson's Board of Directors has recommended that its shareholders accept the bid. The Hanson shareholders gave their consent in an Extraordinary General Meeting on 31 July with a convincing majority of over 99%. Authorisation from the American anti-trust authorities and the European Commission is still required before the takeover can be deemed complete. We remain confident that we can complete the transaction in August or September.

The recommended cash offer submitted to the shareholders of Hanson PLC is a logical consequence of the reorientation of our strategy: To strengthen its market position in the long term, HeidelbergCement is taking a dual strategic approach with a focus on cement in growing markets and on aggregates in mature markets and North America. Taking over Hanson would mean that HeidelbergCement now belongs to the select group of global players in our industry and become the global market leader for aggregates.

Europe-Central Asia EURm Cement Concrete Building materials Intra Group eliminations Total 1,497 805 85 -139 2,247 1,214 718 65 -129 1,868 2006 2007

North America EURm	2006	2007
Cement	703	632
Concrete	595	586
Building materials
Intra Group eliminations	-93	-95
Total	1,205	1,123

Turnover by business lines January to June 2007

Financing measures

The necessary acquisition financing is initially being provided via a credit facility concluded with Deutsche Bank and the Royal Bank of Scotland. This facility has now been successfully syndicated to 46 banks. HeidelbergCement received around EUR 527 million from a capital increase for cash with a subscription price of EUR 120 per share; VEM Vermögensverwaltung GmbH, which belongs to the Merckle group, subscribed to the capital increase. The net cash generated from the sale of our participation in Vicat S.A., amounting to around EUR 1.4 billion, was used for early repayment of part of the syndicated loan already utilised. Furthermore, the intention is that the facility will be partially refinanced by the issue of a hybrid loan as well as via senior loans and the divestment of parts of the Group that do not form part of the core business.

Changes on the Managing Board

The Personnel Committee of HeidelbergCement has decided to recommend to the Supervisory Board that two positions on the Managing Board be re-assigned. A new Managing Board position is to be created in order to cope with the increasing size of the Group, a result of the planned takeover of Hanson, and ensure that the company is rapidly integrated. From 1 October, Dr. Dominik von Achten, formerly a responsible partner & Managing Director of The Boston Consulting Group, will be the head of this Managing Board responsibility.

Dr. Albert Scheuer, who has belonged to the Group since 1992, will also be appointed to the Managing Board. He has held the position of Executive Vice-President of Lehigh Cement Company in the US since 1 August and will continue to do so until the end of the year. From 1 January 2008, he will succeed Helmut S. Erhard, who is retiring, as President and CEO of Lehigh Cement Company.

Asia-Africa-Mediterranean Basin
EURm	2006	2007
Cement	586	715
Concrete	39	46
Building materials
Intra Group eliminations	-14	-17
Total	611	744

maxit Group EURm	2006	2007
Cement
Concrete
Building materials	562	650
Intra Group eliminations
Total	562	650

Sale of Vicat

In June, HeidelbergCement sold its 35% participation in the French building materials company Vicat as part of its strategic reorientation. The total sales revenue of EUR 1.4 billion was used to partially repay the aforementioned syndicated loan.

Important expansion measures in our Group areas

In April 2007, the foundation stone was laid for the construction of the Tulacement plant in Russia. The cement plant, located 130 km south of Moscow in Gurovo in the Tula region, will have a capacity of 2 million tonnes and will supply Russia's largest cement market – the Moscow area. The ultramodern plant, constructed according to the latest environmental standards, is to be commissioned at the end of 2008.

At the end of June, we commissioned the new Jingyang cement plant in the Chinese province of Shaanxi, which we operate as a joint venture with the Chinese cement manufacturer Jidong Cement. The plant, with a capacity of 2.3 million tonnes of cement, primarily supplies the growing market around the provincial capital Xi'an.

In Turkey, our joint venture Akçansa acquired the Ladik cement plant, 80 km from the harbour city of Samsun. By taking over this plant with a cement capacity of 1.2 million tonnes, Akçansa is extending its activities to the Central Black Sea region and securing its leading market position in Turkey.

Investments

In the first half of the year, cash flow investments amounted to EUR 3,639 million (previous year: 304). Investments in tangible fixed assets, which primarily related to maintenance and optimisation measures in our cement plants, accounted for EUR 385 million (previous year: 213) of this total. Investments in financial fixed assets rose to EUR 3,254 million (previous year: 91). These mainly include the acquisition of 27.6% of the shares of Hanson PLC and the purchase of a majority participation in the Georgian cement company Saqcementi.

Employees

In the first half of the year, HeidelbergCement employed 46,256 members of staff (previous year: 43,050) throughout the Group. The increase of 3,206 employees essentially results from the consolidation of our activities in Georgia and India.

Sustainability Report

At the end of July, we completed our second Group Sustainability Report, in which we report on the progress and goals of our sustainability programme. The report is available on our website www.heidelbergcement.com.

4

Europe-Central Asia shows high growth rates in Eastern Europe

Economic growth remains sound in the Europe-Central Asia Group area; growth rates in the Eastern European countries are significantly above average. Exports remain the most important driving force in Germany despite the high euro exchange rate.

Overall, our cement business showed a clear upward trend in the first half of the year. The countries of Eastern Europe and Central Asia, particularly Poland, Romania, the Baltic region and Bosnia-Herzegovina, achieved high double-digit growth rates. In Scandinavia, domestic demand also increased further, while exports to the US declined significantly. Cement demand also weakened in Germany and the United Kingdom over the past three months. By the end of June, the sales volumes of the German plants were only slightly above the previous year's figures.

Overall, our cement and clinker sales volumes in Europe-Central Asia rose by 14.6 % to 20.4 million tonnes (previous year: 17.8). Adjusted for consolidation effects, the increase amounted to 8.4 %. Deliveries of ready-mixed concrete and aggregates also showed the strongest increase in the countries of Eastern Europe; the Northern European and the Benelux countries also recorded pleasing growth. In contrast, Germany suffered losses in both operating lines also as a result of changes in the scope of consolidation.

In the Europe-Central Asia Group area, turnover rose by 20.3 % to EUR 2,247 million (previous year: 1,868).

Continuing high level of results in North America

In the first half of the year, the American construction industry was adversely affected by the decline in housing construction, which was heavier than expected. Commercial construction and infrastructure projects were only able to offset this decline in some regions. No significant improvement is expected this year. The declining construction activity in the US also affected the markets of Eastern Canada, while the western provinces continue to enjoy lively construction activity and strong cement demand.

In the first six months, the cement sales volumes of our North American subsidiary Lehigh were 6.2% below the previous year's level at 6.9 million tonnes (previous year: 7.4), following a doubledigit decline in the first quarter. While sales volumes in Canada reached the previous year's level, the plants in the US recorded losses as a result of economic development and adverse weather conditions. In order to ensure that our plants continue to be fully utilised, we have significantly reduced imports from other Group areas. The difference in the levels of construction activity in the US and Western Canada is also reflected in sales volumes of ready-mixed concrete and aggregates. Overall, deliveries in both operating lines slightly exceeded the previous year's level.

In US dollars, the North America Group area recorded a slight increase in turnover of 0.6 %. In euro terms, turnover fell by 6.8 % to EUR 1,123 million (previous year: 1,205).

Asia-Africa-Mediterranean Basin continues to achieve strong growth

In the emerging countries of the Asia-Africa-Mediterranean Basin Group area, the economy continued to develop dynamically in the first half of the year; once again, China recorded the highest growth.

By the end of June, the cement and clinker sales volumes of the Asia-Africa-Mediterranean Basin Group area had risen by 21.3% to 13.8 million tonnes (previous year: 11.4). Excluding our activities in India, which were consolidated for the first time this year, the increase amounted to 7.3 %. Our joint venture Akçansa in Turkey achieved the highest growth of 14.7% thanks to a strong increase in domestic demand. In Indonesia, construction activity increased significantly again following the heavy monsoon rainfall in the first quarter. The sales volumes of our subsidiary Indocement will exceed the expected market growth of 5% this year. A welcome rise in sales volumes was also recorded in China, primarily in our plants in the southern Chinese province of Guangdong. Africa recorded strong growth, particularly in Tanzania, Nigeria and Ghana; we achieved an overall increase of 12.6 % in sales volumes in Africa.

In the Asia-Africa-Mediterranean Basin Group area, turnover was 21.6 % above the previous year at EUR 744 million (previous year: 611).

maxit Group

In the second quarter, maxit once again showed a clearly positive trend. Apart from a few exceptions, turnover rose significantly in all countries in which maxit Group operates. The Northern European countries in particular achieved high double-digit growth rates, while the markets of Eastern Europe and Russia also developed very positively. maxit Group's turnover increased by 15.7% overall to EUR 650 million (previous year: 562).

As part of the increased focus on the core activities of cement and aggregates (sand/gravel), the Managing Board of HeidelbergCement has commissioned the investment bank Goldman Sachs to examine all possible strategic options for maxit Group.

Group Services

The trade volume of our subsidiary HC Trading decreased by 16 % to 5.7 million tonnes (previous year: 6.8) in the first half of the year. Cement deliveries in particular declined heavily, while a slight increase was recorded in clinker trading.

As a result of the increase in turnover achieved by our subsidiary HC Fuels, which is responsible for purchasing fossil fuels, the total turnover of the Group Services business unit once again reached the previous year's level at EUR 333 million (previous year: 334).

Risk report

As a result of their worldwide operations, all business lines within HeidelbergCement are exposed to a variety of risks in relation to their entrepreneurial activities. Identifying these risks and dealing with them professionally is the responsibility of the Managing Board and is a key task for managers throughout the Group. HeidelbergCement's aim is not to avoid risks altogether, but to take risks on the basis of careful assessment whenever there are opportunities that may optimise the Group's earnings position. Our risk management system, standardised across the Group, consists of a number of different elements, which are systematically incorporated in all of HeidelbergCement's organisational structures and processes. It is mainly based on operational planning and the established risk management strategy.

Based on the well-practised structures of our risk management system, we confirm that we are not aware of any circumstances which would lead us to a different assessment of the risks than the one set out in the 2006 Annual Report. No new risk factors have emerged which might have a significant or lasting impact on the net assets, financial position and results of the Group.

Prospects

The broad-based upturn in the global economy should continue in the second half of 2007, with only a slight fall in dynamics. Growth rates are particularly strong in the emerging countries, not only in China, but now also in India. Overall, Europe is continuing its solid growth trend. The German economy will be primarily supported by the unabated level of export activity, while consumption is still characterised by a backlog of demand. The Eastern European countries are growing at a considerably above-average rate. On the other hand, the weakness of the American housing market and the significant devaluation of the US dollar still pose high risks.

With its broad geographical positioning, HeidelbergCement is confident of once again achieving the planned significant improvement in turnover and results in 2007. The Eastern European and Asian markets will play a particularly important role in reaching this target. The expansion of our capacities, as well as investments to improve efficiency and protect the environment, increases our results potential.

Group profit and loss accounts

Group profit and loss accounts EUR '000s	April - June		January - June
	2006	2007	2006	2007
Turnover	2,531,800	2,750,494	4,276,079	4,810,756
Change in stocks and work in progress	-25,625	16,185	-14,583	25,714
Own work capitalised	515	323	637	651
Operating revenues	2,506,690	2,767,002	4,262,133	4,837,121
Other operating income	31,240	39,180	75,925	86,051
Material costs	-939,032	-1,053,215	-1,699,614	-1,936,481
Employees and personnel costs	-375,682	-393,612	-730,550	-763,655
Other operating expenses	-598,953	-668,073	-1,093,547	-1,248,543
Operating income before depreciation (OIBD)	624,263	691,282	814,347	974,493
Depreciation of tangible fixed assets	-123,660	-127,865	-247,701	-249,545
Amortisation of intangible assets	-2,394	-2,496	-4,612	-5,255
Operating income	498,209	560,921	562,034	719,693
Additional ordinary result	38,598	792,108	60,502	829,202
Result from associated companies 1)	59,791	88,178	85,796	104,598
Results from other participations	-4,781	1,247	-3,315	2,136
Earnings before interest and income taxes (EBIT)	591,817	1,442,454	705,017	1,655,629
Interest and similar income	6,515	9,868	12,700	30,816
Interest and similar expenses	-60,878	-74,654	-118,695	-143,023
Exchange rates gains and losses	-2,653	1,051	3,864	-3,458
Financial result on puttable minorities		-3,840		-4,238
Profit before tax	534,801	1,374,879	602,886	1,535,726
Taxes on income	-156,726	-152,037	-187,780	-193,750
Profit for the financial year	378,075	1,222,842	415,106	1,341,976
Minority interests	-31,868	-29,101	-39,624	-39,292
Group share in profit	346,207	1,193,741	375,482	1,302,684
Earnings per share in EUR (IAS 33)	3.00	10.26	3.25	11.20

Group cash flow statement

EUR '000s January - June 2006 Operating income before depreciation (OIBD) 814,347 Additional ordinary result before depreciation 59,748 Dividends received 12,972 Interest paid -127,303 Taxes paid -148,713 Elimination of non-cash items 8,685 Cash flow 619,736 Changes in operating assets -407,653 Changes in operating liabilities 18,825 Cash flow from operating activities 230,908 Intangible assets -908 Tangible fixed assets -212,108 Financial fixed assets -90,510 Investments (cash outflow) -303,526 Proceeds from fixed asset disposals 85,031 Cash from changes in consolidation scope 9,641 Cash flow from investing activities -208,854 Capital increase 229 Dividend payments – HeidelbergCement AG -132,938 Dividend payments – minority shareholders -22,734 Proceeds from bond issuance and loans 219,498 Repayment of bonds and loans -169,833 Cash flow from financing activities -105,778 Net change in cash and cash equivalents -83,724 Effect of exchange rate changes 35,234 Cash and cash equivalents at 1 January 316,816 Cash and cash equivalents at 30 June 1) 268,326	Group cash flow statement
		2007
		974,493
		828,238
		12,297
		-153,281
		-152,954
		-691,255
		817,538
		-424,242
		-10,577
		382,719
		-37,427
		-347,298
		-3,254,374
		-3,639,099
		1,430,561
		8,938
		-2,199,600
		527,067
		-144,508
		-23,665
		1,634,551
		-124,300
		1,869,145
		52,264
		997
		218,839
		272,100

1) In the balance sheet, the item "Securities and similar rights" also lists the market value of hedging transactions and the "available for sale financial assets" amounting to EUR 21.4 million (previous year: 51.8)

Group balance sheet

Assets
EUR '000s	31 Dec. 2006	30 June 2007
Long-term assets
Intangible assets	2,802,535	2,931,964
Tangible fixed assets
Land and buildings	2,048,053	2,030,411
Plant and machinery	2,916,338	2,880,415
Fixtures, fittings, tools and equipment	197,138	192,124
Payment on account and assets under construction	379,799	531,413
	5,541,328	5,634,363
Financial fixed assets
Shares in associated companies	850,561	3,436,456
Shares in other participations	234,493	271,154
Loans to participations	32,052	47,053
Other loans	45,416	40,584
	1,162,522	3,795,247
Fixed assets	9,506,385	12,361,574
Deferred taxes	132,829	132,907
Other long-term receivables	75,932	85,313
Long-term tax assets		25,608
	9,715,146	12,605,402
Short-term assets
Stocks
Raw materials and consumables	504,088	532,563
Work in progress	91,095	111,130
Finished goods and goods for resale	283,881	290,703
Payments on account	16,970	26,034
	896,034	960,430
Receivables and other assets
Short-term financial receivables	100,818	75,014
Trade receivables	1,024,255	1,354,846
Other short-term operating receivables	291,497	332,490
Current income tax assets	56,516	48,747
	1,473,086	1,811,097
Short-term investments and similar rights	19,261	24,725
Cash at bank and in hand	214,919	268,783
	2,603,300	3,065,035
Balance sheet total	12,318,446	15,670,437

1) Includes puttable minorities with an amount of EUR '000s 89,234 (previous year: 105,974).

Liabilities EUR '000s	31 Dec. 2006	30 June 2007
Shareholders' equity and minority interests
Subscribed share capital	346,974	360,000
Capital reserves	2,462,144	2,976,186
Revenue reserves	2,845,682	4,033,477
Currency translation	-303,455	-291,638
Company shares	-2,934
Capital entitled to shareholders	5,348,411	7,078,025
Minority interests	479,511	512,052
	5,827,922	7,590,077
Long-term provisions and liabilities
Provisions
Provisions for pensions	678,906	676,314
Deferred taxes	506,583	520,391
Other long-term provisions	459,597	480,195
	1,645,086	1,676,900
Liabilities
Debenture loans	748,207	299,177
Bank loans	694,061	2,083,002
Other long-term financial liabilities	475,307	410,653 1)
	1,917,575	2,792,832
Other long-term operating liabilities	13,327	15,922
	1,930,902	2,808,754
	3,575,988	4,485,654
Short-term provisions and liabilities
Provisions	143,762	137,116
Liabilities
Debenture loans (current portion)	672,400	452,826
Bank loans (current portion)	437,943	793,103
Other short-term financial liabilities	392,869	841,714 1)
	1,503,212	2,087,643
Trade payables	657,362	608,902
Current income taxes payables	72,646	135,157
Other short-term operating liabilities	537,554	625,888
	2,770,774	3,457,590
	2,914,536	3,594,706
Balance sheet total	12,318,446	15,670,437

Statement of recognised income and expense

Statement of recognised income and expense
EUR '000s	January - June
	2006	2007
IAS 39 Financial Instruments: Recognition and Measurement	-6,495	29,695
Currency translation	-172,547	9,781
Other consolidation adjustments	7,976	356
Income and expense directly recognised in equity	-171,066	39,832
Profit for the financial year	415,106	1,341,976
Total earnings for the period	244,040	1,381,808
Part of minorities	2,099	37,688
Part of shareholders HeidelbergCement AG	241,941	1,344,120

Group equity capital grid /notes

Group equity capital grid /notes	Subscribed share	Capital reserves	Revenue reserves	Currency translation	Company shares	Capital entitled to	Minority interests	Total
EUR '000s	capital					shareholders
1 January 2006	296,065	2,512,679	1,999,286	-174,938	-2,936	4,630,156	427,709	5,057,865
Profit for the financial year			375,482			375,482	39,624	415,106
Capital increase
from issuance of new shares	12	217				229		229
Issuance of company shares					2	2		2
Dividends			-132,938			-132,938	-22,734	-155,672
Changes without effects on results
Consolidation adjustments			7,976			7,976	40,714	48,690
IAS 39 Financial instruments: Recognition and Measurement			-5,279			-5,279	-1,216	-6,495
Exchange rate				-136,238		-136,238	-36,309	-172,547
30 June 2006	296,077	2,512,896	2,244,527	-311,176	-2,934	4,739,390	447,788	5,187,178
1 January 2007	346,974	2,462,144	2,845,682	-303,455	-2,934	5,348,411	479,511	5,827,922
Profit for the financial year			1,302,684			1,302,684	39,292	1,341,976
Capital increase
from issuance of new shares	13,181	514,042				527,223		527,223
Withdrawal of company shares	-155				2,934	2,779		2,779
Dividends			-144,508			-144,508	-23,665	-168,173
Changes without effects on results
Consolidation adjustments			356			356	18,518	18,874
IAS 39 Financial instruments: Recognition and Measurement			29,263			29,263	432	29,695
Exchange rate				11,817		11,817	-2,036	9,781
30 June 2007	360,000	2,976,186	4,033,477	-291,638		7,078,025	512,052	7,590,077

Segment reporting /notes

Group areas January to June 2007 (Primary reporting format under IAS 14 No. 50 ff.)
EURm	Europe-Central Asia		North America
	2006	2007	2006	2007
External turnover	1,816	2,211	1,205	1,123
Inter-area turnover	52	36
Turnover	1,868	2,247	1,205	1,123
Change to prior year in %		20.3 %		-6.8 %
Operating income before depreciation (OIBD)	352	502	249	216
in % of turnover	18.8 %	22.3 %	20.6 %	19.2 %
Depreciation	137	139	49	46
Operating income	214	363	199	170
in % of turnover	11.5 %	16.2 %	16.5 %	15.1 %
Results from participations	76	102	1	0
Total additional ordinary result
Earnings before interest and income taxes (EBIT)	291	465	200	170
Investments 1)	95	147	70	93
Employees	21,989	22,271	6,104	6,047

1) Investments = in the segment columns: tangible and intangible fixed asset investments; in the reconciliation column: financial fixed asset investments

	Asia-Africa
	Mediterranean Basin	maxit Group			Group Services		Reconciliation		Group
2006	2007	2006	2007	2006	2007	2006	2007	2006	2007
567	705	561	649	127	123			4,276	4,811
45	38	1	1	207	211	-304	-287
611	744	562	650	334	333	-304	-287	4,276	4,811
	21.6 %		15.7 %		-0.1%				12.5 %
131	156	71	95	11	6			814	974
21.5 %	20.9 %	12.7 %	14.6 %	3.3 %	1.9%			19.0 %	20.3 %
39	41	26	28	0	0			252	255
92	114	46	67	11	6			562	720
15.1 %	15.4 %	8.1 %	10.3 %	3.2 %	1.8%			13.1 %	15.0 %
5	3	0	1					82	107
						61	829	61	829
97	118	46	68	11	6	61	829	705	1,656
32	120	16	25			91	3,254	304	3,639
9,986	12,755	4,922	5,130	48	53			43,050	46,256

Additional comments

Accounting and con solidation principles	The Group interim financial statements of HeidelbergCement AG for the six months ended 30 June 2007 have been drawn up in accordance with those International Financial Reporting Standards (IFRS) as adopted in the European Union which apply to interim reporting. In the Group interim financial statements, we have used the same accounting policies as those used to prepare the Group financial statements for the year ended 31 December 2006, and have also applied IAS 34 "Interim Financial Reporting". The Group interim financial statements have not been audited or reviewed. Results from participations comprise both income from other participations and amounts written off financial fixed assets.
Seasonal nature of the business	Regional weather conditions are reflected in HeidelbergCement's production and sales position.
Consolidation scope	At equity consolidated companies The 27.6% stake in Hanson PLC has been included in the Group financial statements at equity since 17 May 2007. The acquisition costs for the shares amounted to EUR 3.1 billion. Our investment in Vicat S.A. which had been accounted for using the equity method was sold on 18 June 2007 for EUR 1.4 billion. Fully consolidated companies In the Europe-Central Asia Group area, there were changes in the consolidation scope in compari son with 31 December 2006 as detailed below. The percentage of shares owned by the Group in each case is given in brackets.

CaucasusCement Holding B.V., 's-Hertogenbosch (75 %), acquired in the Netherlands, was included in the Group accounts for the first time on 1 February 2007 as a fully consolidated company. This company in turn holds a share of 100% in the Georgian subsidiaries Limited Liability Company KaspiCementi, Kaspi City, Limited Liability Company RustavCementi, Rustavi City and Limited Liability Company SaqCementi, Manglisi village, Tetritskaro. Acquisition costs amounted to EUR 95.5 million. The first-time consolidation resulted in goodwill of EUR 87.7 million.

In addition, Bialostockie Kopalnie Surowców Mineralnych Sp. z o.o., Bialostockie/Poland, and Limited Liability Company "Rybalsky Quarry", Dnipropetrovsk/Ukraine, have been included in the consolidation scope since the beginning of the year at an acquisition cost of EUR 7.9 million. The resulting goodwill amounts to EUR 6.2 million.

In accordance with IFRS 3.61 ff., the acquired assets and liabilities of the companies consolidated for the first time are included in the Group accounts of HeidelbergCement AG on the basis of provisional information.

The goodwill comprises market shares purchased that cannot be assigned to any other determinable and separable intangible fixed assets.

The formerly fully consolidated Swedish companies Reci Industrie AB, Danderyd, and Millfill AB, Örebro, left the consolidation scope following their sale.

The opening balance sheet values as well as the turnover and results from the first half of 2007 of companies acquired and included for the first time in the Group annual accounts (Business Combinations) are as follows, in accordance with IFRS 3.67 ff.:

Assets
EUR '000s	30 June 2007
Long-term assets
Intangible assets	411
Tangible fixed assets	7,031
Financial fixed assets	1,304
Fixed assets	8,746
Deferred taxes	175
	8,921
Short-term assets
Stocks	6,084
Receivables and other assets	10,970
Cash at bank and in hand	351
	17,405
Balance sheet total	26,326

Liabilities
EUR '000s	30 June 2007
Shareholders' equity and minority interests	8,315
Long-term provisions and liabilities
Provisions	905
Liabilities	6,917
	7,822
Short-term provisions and liabilities
Provisions	3,809
Liabilities	6,380
	10,189
Balance sheet total	26,326

Results of the companies consolidated for the first time in the first half year of 2007 EUR '000s
Turnover	34,400
Profit for the financial year	7,279
Minority interests	-1,724
Group share in profit	5,555

Assuming that the first-time consolidations took place on 1 January 2007, the Group turnover would have been EUR '000s 3,703 higher. For reasons of materiality, we refrained from individual disclosures (IFRS 3.68).

Turnover development by Group areas and business lines January to June 2007 Intra Group
EURm	Cement		Concrete		Building materials		eliminations		Total
	2006	2007	2006	2007	2006	2007	2006	2007	2006	2007
Europe-Central Asia	1,214	1,497	718	805	65	85	-129	-139	1,868	2,247
North America	703	632	595	586			-93	-95	1,205	1,123
Asia-Africa-Mediterranean
Basin	586	715	39	46			-14	-17	611	744
maxit Group					562	650			562	650
Total	2,503	2,844	1,353	1,436	627	736	-237	-251	4,247	4,764
Group Services									334	333
Inter-area turnover									-304	-287
Total Group									4,276	4,811

Exchange rates		Exchange rates at		Average exchange rates
		31 Dec. 2006	30 June 2007	01-06/2006	01-06/2007
	Country	EUR	EUR	EUR	EUR
USD	US	1.3196	1.3541	1.2310	1.3296
CAD	Canada	1.5373	1.4423	1.4010	1.5088
CNY	China	10.3015	10.3061	9.8862	10.2619
GBP	Great Britain	0.6737	0.6739	0.6872	0.6748
GEL	Georgia	2.2544	2.2519	2.2233	2.2491
HRK	Croatia	7.3502	7.2944	7.3201	7.3559
IDR	Indonesia	11,902.79	12,260.02	11,282.92	12,039.90
INR	India	58.2076	54.8411	55.3147	56.5086
KZT	Kazakhstan	167.46	165.30	156.12	163.64
NOK	Norway	8.2248	7.9702	7.9361	8.1361
PLN	Poland	3.8279	3.7695	3.8928	3.8412
RON	Romania	3.3808	3.1263	3.5434	3.3294
SEK	Sweden	9.0331	9.2396	9.3313	9.2178
SKK	Slovakia	34.4442	33.5979	37.5891	34.0255
CZK	Czech Republic	27.4741	28.7435	28.5089	28.1268
HUF	Hungary	251.0803	246.5004	260.8126	250.1329
TRY	Turkey	1.8672	1.7766	1.7199	1.8248

Other disclosures

Besides the cash capital increase of EUR 527 million, to which the sole subscriber was VEM Vermögensverwaltung GmbH, which belongs to the Merckle group, no reportable related parties transactions have been carried out which went beyond normal business relations.

Subsequent events after the reporting period

Takeover of Hanson PLC

In an Extraordinary General Meeting on 31 July the Hanson shareholders gave their consent with a majority of over 99 % to the takeover of Hanson PLC by HeidelbergCement.

Passage of Corporate Tax Reform Bill 2008

On 6 July 2007, the Bundesrat, the upper house of the German Parliament, approved the German Corporate Tax Reform Bill 2008. As a result of the new overall tax rate in Germany, tax burden of HeidelbergCement Group will slightly decrease. We do not expect that the decrease in the tax rate from average 38.65% to 29.83% will have a significant impact on the net assets, financial position or results of operations of the Group.

maxit Group

The Managing Board of HeidelbergCement has commissioned the investment bank Goldman Sachs to examine all possible strategic options for maxit Group, including the sale of the company.

Representation from the legal representatives of the Group

To the best of our knowledge, we affirm that the Group interim financial statements, prepared in accordance with those accounting standards which apply to interim reporting, give a true and fair view of the net assets, financial position and results of operations of the Group, that the Group interim management report presents the business performance of the Group, including the operating results and position of the Group, in such a way as to provide a true and fair view of the Group, and that a description has been given of the main opportunities and risks associated with the future development of the Group in the remaining part of the financial year.

Heidelberg, 6 August 2007

HeidelbergCement AG

The Managing Board

Financial calendar Interim report January to September 2007 6 November 2007 First overview of the financial year 2007 January 2008 Press and analysts' conference on annual accounts 17 March 2008 Annual General Meeting 2008 8 May 2008

HeidelbergCement AG Berliner Strasse 6 69120 Heidelberg, Germany www.heidelbergcement.com