©2011 Holcim Ltd/Switzerland New Shurovo plant (Russia) Third quarter results 2011 and outlook 1 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Holcim at a glance Better results in third quarter and organic growth Higher sales volumes in cement, aggregates and ready-mix concrete over nine months and in the third quarter Latin America and Asia Pacific on growth path Europe and North America lack key stimuli Strong Swiss franc impacts operating EBITDA by CHF 458 million Declining operating EBITDA due to cost increases which could not yet be passed on completely to sales prices Like-for-like operating EBITDA is expected to be close to last year's level 2 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Higher sales of cement and aggregates in Europe Higher sales of cement and aggregates; volumes of ready- mix concrete nearly matched the previous year's level Higher sales volumes especially in France, Germany, Switzerland and Russia, as well as some parts of Eastern Europe Slow construction activity in Italy, Spain and the UK; deconsolidations and closures of ready-mix concrete plants Higher costs could only be partially offset by prices increases Operating EBITDA also impacted by outstanding sales of CO 2 emissions certificates and the weak euro Organic growth in third quarter 3 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Slightly better building materials demand in North America Higher sales volumes in all segments thanks to US road- building Full takeover of Lattimore Materials in Texas strengthened sales of aggregates and ready-mix concrete Holcim Canada felt the decline in construction activity in all relevant markets Operating EBITDA impacted by increased production costs amid relatively stable prices and expenses incurred by temporary closure of the Catskill plant 4 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Solid markets in Latin America Building activity solid in nearly all markets Numerous infrastructure projects, particularly in Brazil, Argentina, Chile and Colombia All Group companies sold more cement and aggregates; ready-mix concrete was also up significantly Operating EBITDA impacted by rising energy and distribution costs and the fact that prices could not yet be fully adjusted, as well as strong Swiss franc Organic growth nevertheless achieved over nine months, primarily in the third quarter 5 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Unchanged business situation in Africa Middle East Solid construction activity in Morocco, Lebanon and some parts of the Indian Ocean region New competitors depressed cement and aggregate sales at Holcim Morocco Despite project delays at construction sites in Beirut, Holcim Lebanon sold more cement and ready-mix concrete Positive volume development in the Indian Ocean region Operating EBITDA declined primarily due to the currency impact, but was clearly positive in the third quarter 6 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Continuing volume growth in Asia Pacific The Asian markets remained on their path of growth In Oceania, there was a lack of concrete-intensive projects Higher deliveries of cement thanks to India and Indonesia, and of aggregates due to Holcim Australia Stronger results posted above all in Thailand, Vietnam, Singapore, Indonesia and at Holcim Australia Inflation could not be passed on in full to prices One-off costs for closure of Kandos in Australia Operating EBITDA lower due to strong Swiss franc; organic growth of Group region 7 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Fund to promote energy efficiency Fund for promotion of innovative approaches to improving energy efficiency set up in 2010 A component of the Group's comprehensive energy strategy Roughly CHF 100 million at its disposal on annual basis Emphasis for approved projects: Heat recovery for electricity production Alternative fuels for replacement of traditional heat sources Wind power for electricity production Fund financed by receipts from sale of surplus CO 2 emissions certificates 8 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Reduction of 200,000 tonnes in annual CO 2 emissions Untervaz (Switzerland) Waste heat recovery CO 2 reduction: 400 tonnes p.a. Rabriyawas (India) Waste heat recovery CO 2 reduction: 25,900 tonnes p.a. Mississauga (Canada) Waste heat recovery CO 2 reduction: 4,800 tonnes p.a. Técoman (Mexico) Waste heat recovery CO 2 reduction: 10,800 tonnes p.a. Héming (France) Alternative fuels CO 2 reduction: 3,800 tonnes p.a. Rohoznik (Slovakia) Waste heat recovery CO 2 reduction: 14,500 tonnes p.a. Hon Chong (Vietnam) Waste heat recovery CO 2 reduction: 25,900 tonnes p.a. Gagal (India) Waste heat recovery CO 2 reduction: 57,600 tonnes p.a. Chekka (Lebanon) Waste heat recovery CO 2 reduction: 10,200 tonnes p.a. Alesd (Romania) Waste heat recovery CO 2 reduction: 11,300 tonnes p.a. Lägerdorf (Germany) Alternative fuels CO 2 reduction: 37,800 tonnes p.a. 9 Results Q3 2011 ©2011 Holcim Ltd/Switzerland Examples of Holcim's innovative approach Gagal, India Waste Heat Recovery Lägerdorf, Germany Alternative fuels [...]... Q1 2011 Q2 2011 -854 -15.1% Q3 2011 15 2011 Holcim Ltd/ Switzerland Results Q3 2011 Net sales Million CHF 15,774 Like-for-Like (LFL) Change in structure Forex movements Total change 16,568 15,461 -2,000 -10.3% -134 -0.7% -1,432 -7.4% 3,566 -18.4% -358 -2.3% 1,106 7.0% 46 0.3% 794 5.0% 967 5.8% 130 0.8% -2,205 -13.3% -1,107 -6.7% 9M 2009 9M 2010 9M 2011 16 2011 Holcim Ltd/ Switzerland Results Q3 2011. .. -698 -703 -0.7% 1,578 536 -729 236.1% 25 2011 Holcim Ltd/ Switzerland Results Q3 2011 Financial position Million CHF Net financial debt 58.4% 53.8% 21,805 12,723 9M 2010 Total shareholders' equity Gearing 62.4% 21,121 11,363 12M 2010 19,424 12,127 9M 2011 26 2011 Holcim Ltd/ Switzerland Results Q3 2011 Financial debt, maturities and liquidity as of September 30, 2011 Maturity profile (CHF million) 5'000... -16.9% 20 2011 Holcim Ltd/ Switzerland Results Q3 2011 Operating profit Margin Million CHF 14.8% 13.1% 11.3% 2,337 Like-for-Like (LFL) Change in structure Forex movements Total change -421 -92 -237 -750 -13.6% -3.0% -7.7% -24.3% 9M 2009 2,178 -292 -12.5% 103 4.4% 30 1.3% -159 -6.8% 9M 2010 1,753 -139 -6.4% -6 -0.3% -280 -12.8% -425 -19.5% 9M 2011 21 2011 Holcim Ltd/ Switzerland Results Q3 2011 Operating... 13.5% 9.8% 12 2011 Holcim Ltd/ Switzerland Results Q3 2011 Ready-mix concrete and asphalt – Sales volumes by region Million m3/t 13.0 3.9 4.1 3.4 4.2 5.1 12.4 4.4 4.2 3.5 0.8 12.2 0.8 4.2 Total Ready-mix 9M 2009 30.4 9M 2010 34.4 9M 2011 36.1 9.8 9.3 0.8 4.9 7.6 7.7 8.2 9M 10/9M 11* Total Asphalt 9M 2009 8.1 9M 2010 7.8 9M 2011 7.6 * Ready-mix concrete only 2011 Holcim Ltd/ Switzerland Europe North... -6.8% -1,123 -54.7% 9M 2010 9M 2011 24 2011 Holcim Ltd/ Switzerland Results Q3 2011 Cash flow statement Million CHF Cash flow from operating activities Net investments to maintain productive capacity and to secure competitiveness Free cash flow Expansion investments Financial investments net Dividends paid Financing surplus / (requirement) Full Year 9 months +/- 2010 2010 2011 3,659 2,053 930 -54.7% -410... -11.3% -19.5% 22 2011 Holcim Ltd/ Switzerland Results Q3 2011 Net income Million CHF Net income Net income - shareholders of Holcim Ltd 1,577 1,200 1,223 875 -25.2% -31.0% 9M 2009 -22.4% -27.1% 9M 2010 1,004 713 -17.9% -18.5% 9M 2011 23 2011 Holcim Ltd/ Switzerland Results Q3 2011 Cash flow from operating activities Million CHF 13.9% 12.4% Margin 6.0% 2,192 2,053 930 Like-for-Like (LFL) Change in structure... long-term committed credit lines 2011 Holcim Ltd/ Switzerland 27 Results Q3 2011 Outlook Europe: demand remains solid in many places North America: slight improvement in construction sector Latin America: remains on track for growth Africa Middle East: no change in business conditions Asia Pacific: brisk construction activity continues For the current financial year, Holcim expects a like-forlike... change -317 -7.3% -93 -2.1% -341 -7.8% -751 -17.2% 9M 2009 -241 -6.7% 183 5.1% 21 0.6% -37 -1.0% 9M 2010 -156 -4.4% 8 0.2% -458 -12.8% -605 -16.9% 9M 2011 19 2011 Holcim Ltd/ Switzerland Results Q3 2011 Operating EBITDA by region Million CHF 9M 2009 9M 2010 9M 2011 1 1035 855 707 328 366 1439 264 1306 279 818 762 662 286 9M 10/9M 11 Europe North America Latin America Africa Middle East Asia Pacific Total... throughout this report may not add up precisely to the totals provided All ratios and variances are calculated using the underlying amount rather than the presented rounded amount 2011 Holcim Ltd/ Switzerland 10 Results Q3 2011 Cement – Sales volumes by region Million t 20.9 8.3 20.1 20.6 Total Group 9M 2009 99.1 9M 2010 102.8 9M 2011 108.1 8.5 8.4 49.9 6.6 17.1 16.8 18.0 6.8 53.2 56.2 6.5 9M 10/9M 11 Europe... 2011 Holcim Ltd/ Switzerland Results Q3 2011 North America – regional overview Million CHF (if not otherwise stated) Cement volumes (mt) Aggregates volumes (mt) Ready-mix volumes (mm3) Net sales Operating EBITDA 9 months 2010 2011 8.4 8.5 +/LFL CIS 1.2% 0.0% 1.2% 28.8 31.9 2.2% 8.8% 11.0% 4.2 5.1 -3.3% 24.4% 21.0% 2,449 2,151 -1.0% 4.7% -15.8% -12.1% 366 264 -17.1% 1.3% -12.3% -28.0% FX Total 30 ©2011 . 2011 Holcim Ltd/ Switzerland New Shurovo plant (Russia) Third quarter results 2011 and outlook 1 Results Q3 2011 2011 Holcim Ltd/ Switzerland Holcim at a glance Better results in third quarter. outstanding sales of CO 2 emissions certificates and the weak euro Organic growth in third quarter 3 Results Q3 2011 2011 Holcim Ltd/ Switzerland Slightly better building materials demand in. p.a. 9 Results Q3 2011 2011 Holcim Ltd/ Switzerland Examples of Holcim& apos;s innovative approach Gagal, India Waste Heat Recovery Lägerdorf, Germany Alternative fuels 10 Results Q3 2011 2011 Holcim