Third quarter results and outlook for 2006 holcim

Third quarter results and outlook for 2006 1 3 rd Quarter 2006 Key facts at a glance  Higher sales in all Group regions and segments  Price increases, efficiency gains and expanded scope of consolidation strengthen results  Higher energy costs and competitive pressure in some markets have been largely offset  Internal and external growth produce record results  Holcim again "Leader of the Industry" in the Dow Jones Sustainability Index 2006/07 2 3 rd Quarter 2006 Dynamic growth in key Group markets enables capacity expansion in cement Million t * 2007 2008 2009 Total Europe 1.2 1.5 2.7 North America 0.5 4.0 4.5 Latin America Africa Middle East 1.7 0.6 2.3 Asia Pacific 5.6 3.7 9.3 Total Group 9.0 5.8 4.0 18.8 * Approved projects of Group companies; partly under construction 3 3 rd Quarter 2006  Robust economy supports construction industry  Encouraging order situation in western and southeastern Europe Europe 4 3 rd Quarter 2006 Positions in Europe Cement plant Grinding plant/terminal Aggregates Participation: Cement plant 1 Under construction 1 1 1 5 3 rd Quarter 2006 Facts on Europe  Higher volumes in all segments  Cement sales rising, in particular in France, Benelux, and southeastern Europe  Aggregate Industries UK lifts sales of aggregates and ready- mix concrete  Group companies showed significant improvement in results  Operating EBITDA up by 16.8 percent to CHF 1.464 billion  Internal operating EBITDA growth at 9.5 percent 6 3 rd Quarter 2006  Economic environment largely sound  Housing construction cooling visibly North America 7 3 rd Quarter 2006 Positions in North America 1 Cement plant Grinding plant/terminal Aggregates 1 Under construction 1 8 3 rd Quarter 2006 Facts on North America  Slight increase in cement sales  Cement, clinker and granulated blast furnace slag again had to be imported to cover demand  Sales of aggregates and ready-mix concrete higher thanks to additions to the scope of consolidation  Better prices in all market regions  Operating EBITDA up by 15.1 percent to CHF 776 million  Internal operating EBITDA growth at 14.6 percent 9 3 rd Quarter 2006  Economic upswing continues unbroken  Housing construction robust and infrastructure expanded further Latin America [...]... 3rd Quarter 2006 Facts on Latin America Higher sales in all segments Strong volume increases at Holcim Apasco in Mexico and Holcim Brazil Strong results increase in Mexico, El Salvador, Ecuador and Colombia/Venezuela Operating EBITDA up by 13 percent to CHF 955 million Internal operating EBITDA growth at 10.5 percent 11 3rd Quarter 2006 Africa Middle East Construction activity robust in Morocco and. .. operating EBITDA growth at 10.5 percent 14 3rd Quarter 2006 Asia Pacific Strong growth of Indian construction industry Restrained building activity in Thailand, the Philippines and Indonesia 15 3rd Quarter 2006 Positions in Asia Pacific 1 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Grinding plant/terminal 1 Under construction 16 3rd Quarter 2006 Facts on Asia Pacific Group region strengthened... 20.3% 4.8% 18 3rd Quarter 2006 Major changes in the scope of consolidation Effective as at + Aggregate Industries, UK/US + Ambuja Cement Eastern, India + ACC Limited, India + Gujarat Ambuja Cements, India + Meyer Material Company, US + Foster Yeoman, UK March 21, 2005 April 11, 2005 January 24, 2006 May 3, 2006 July 21, 2006 September 7, 2006 +/– Various smaller companies 19 3rd Quarter 2006 Exchange rates... 22.7% 19.9% 11.8% 99.4% 30.5% 25 3rd Quarter 2006 Net sales by region Net sales 9M 2006 North America 22.8% Europe 34.9% Asia Pacific 18.5% Latin America 15.2% Africa Middle East 8.6% 26 3rd Quarter 2006 Operating EBITDA Million CHF 27.9% Margin 26.1% 26.5%* 25.6% 4,489 3,501 2,792 Like -for- Like (LFL) Change in structure Forex movements Total change margin on a like -for- like basis 272 9.7% 475 17.1% -38... 28.2% 28 3rd Quarter 2006 Operating profit Margin Million CHF 17.8% 19.2% 19.9%* 18.7% 3,281 2,576 Goodwill amortization Like -for- Like (LFL) Change in structure Forex movements Total change 1,787 9M 2004 * margin on a like -for- like basis 265 17.1% 23 1.5% -51 -3.3% 237 15.3% 190 310 315 -26 789 10.7% 17.3% 17.6% -1.4% 44.2% 9M 2005 336 13.0% 316 12.3% 53 2.1% 705 27.4% 9M 2006 29 3rd Quarter 2006 Operating... hostilities 12 3rd Quarter 2006 Positions in Africa Middle East 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Grinding plant/terminal 1 Under construction 1 13 3rd Quarter 2006 Facts on Africa Middle East With the exception of Holcim Lebanon, all Group companies lifted domestic sales Morocco and South Africa reported very good sales trend With the exception of Holcim Lebanon, all... holders of Holcim Ltd 1,950 +43.2% 1,505 1,362 1,153 +56.2% 872 +30.5% +68.1% 686 +21.0% +33.0% 1, 2 9M 2004 1 2 9M 2005 restated in line with new and revised IFRS, effective January 1, 2005 2 9M 2006 adjusted in line with IAS 21 amended 31 3rd Quarter 2006 Cash flow from operating activities Million CHF 16.7% Margin 15.3%* 13.9% 13.4% 2,348 1,864 1,669 Like -for- Like (LFL) Change in structure Forex movements... -4.2% 12.8% 22 3rd Quarter 2006 Sales of ready-mix concrete and asphalt Ready-mix concrete in million m3 Asphalt in million t +23.9% 32.8 28.1 +16.7% 21.9 +28.3% +11.2% 9.0 0.2 9M 2004 n/a: not applicable n/a 9M 2005 11.1 +23.3% 9M 2006 23 3rd Quarter 2006 Net sales Million CHF 17,514 13,425 10,017 Like -for- Like (LFL) Change in structure Forex movements Total change 732 7.8% 98 1.0% -208 -2.2% 622... Malaysia and Singapore Sales down in Vietnam and Indonesia The inclusion of India and a stronger presence in major urban centers bolsters ready-mix concrete sales Operating EBITDA up by 121.6 percent to CHF 933 million on generally stable prices Internal operating EBITDA growth at 0.2 percent 17 3rd Quarter 2006 Key financial figures Million CHF Net sales Full Year 2005 18,468 9 Months 1 +/- 2006 LFL... marketable securities (De)Increase in cash and cash equivalents -69.6% -32.4% 34 3rd Quarter 2006 Financial position Million CHF Net financial debt 98.5% Total shareholders' equity Gearing 89.1% 69.2% 18,629 13,466 13,669 30.09.2005 12,693 14,250 31.12.2005 12,892 30.09 .2006 EBITDA net interest coverage 5.9 6.0 6.4 EBIT net interest coverage 4.4 4.3 4.7 35 3rd Quarter 2006 . Third quarter results and outlook for 2006 1 3 rd Quarter 2006 Key facts at a glance  Higher sales in all Group regions and segments  Price increases, efficiency gains and expanded scope. at 14.6 percent 9 3 rd Quarter 2006  Economic upswing continues unbroken  Housing construction robust and infrastructure expanded further Latin America 10 3 rd Quarter 2006 Positions in Latin. plant/terminal 11 3 rd Quarter 2006 Facts on Latin America  Higher sales in all segments  Strong volume increases at Holcim Apasco in Mexico and Holcim Brazil  Strong results increase in Mexico,