Results 2011 and outlook 2012 holcim ltd switzerland

© 2012 Holcim Ltd/Switzerland First cement plant in Holderbank (Switzerland) Results 2011 and Outlook 1 Financial results 2011 © 2012 Holcim Ltd/Switzerland Holcim at a glance  Growth in most of the emerging markets, but subdued building activity in many mature markets  Higher sales volumes in cement, aggregates and ready-mix concrete with significant volume increases and higher operating EBITDA in the 4 th quarter  Increasing costs for raw materials, energy and transport as well as the strong Swiss franc impacted operating result  Holcim achieved higher turnover and stable operating EBITDA like-for-like  Non-cash impairments impacted net income  Proposal for a cash payout from capital reserves of CHF 1.00 per registered share (2010: 1.50) 2 Financial results 2011 © 2012 Holcim Ltd/Switzerland Positive volume development in Europe  Debt crisis dampened economic recovery in the building industry  Higher sales of cement, aggregates and ready-mix concrete  Restructuring and plant closures in Italy, Spain and Eastern Europe  Start-up of the Shurovo plant in Russia and first clinker production at the Garadagh plant in Azerbaijan  Strong Swiss franc, higher costs and lower receipts from the sale of CO 2 certificates impacted result  Non-cash impairments in Spain and Eastern Europe 3 Financial results 2011 © 2012 Holcim Ltd/Switzerland Slight recovery tendencies in North America  Slightly better economic performance in the US and moderate development in Canada  Higher sales volumes in all segments – supported by acquisitions in the field of aggregates and ready-mix concrete  Strong Swiss franc and higher production and distribution costs led to a lower operating EBITDA  The Catskill and Artesia plants were permanently closed in the 4 th quarter, resulting in non-cash impairments 4 Financial results 2011 © 2012 Holcim Ltd/Switzerland Solid economic development in Latin America  Lively construction activity in most countries and increased cement demand  Higher sales volumes in all segments and a strong rise in the aggregates segment  In Ecuador, capacity expansion was concluded and decision taken to build a new kiln line in Brazil  Despite higher costs for energy and transport, operating EBITDA increased like-for-like 5 Financial results 2011 © 2012 Holcim Ltd/Switzerland Stable markets in Africa Middle East  Positive economic development in Morocco, Lebanon, West Africa and in the Middle East  Decreasing shipments of aggregates, but increased sales volumes of ready-mix concrete  Project for doubling clinker capacity at the Fès plant continued as scheduled  Operating EBITDA almost reached previous year’s level like-for-like 6 Financial results 2011 © 2012 Holcim Ltd/Switzerland Dynamic building activity in Asia Pacific  Asia predominantly remained on a growth path and in Oceania only the mining sector is enjoying a good workload  Floods and an earthquake impacted building activity in Australia, Thailand and New Zealand  Higher sales volumes in all segments  Selective capacity expansion  Despite cost pressure, operating EBITDA increased significantly like-for-like 7 Financial results 2011 © 2012 Holcim Ltd/Switzerland 2010 2011 LFL CIS FX Total Sales volumes - Cement (mt) 33.9 36.2 6.3% 0.4% 6.7% - Aggregates (mt) 39.1 42.6 7.2% 1.8% 8.9% - Ready-mix (mm 3 ) 11.5 12.2 3.0% 3.6% 6.5% Net sales 5,085 5,284 13.1% 0.8% -10.0% 3.9% Operating EBITDA 936 987 15.5% 0.3% -10.5% 5.3% Operating profit 441 180 -55.6% -1.8% -1.9% -59.2% Net income 398 -322 -197.6% -1.1% 17.8% -180.8% Net income attr. to Holcim shareholders 307 -438 -270.4% -1.4% 28.8% -242.9% Cash flow 1,606 1,823 28.4% 0.3% -15.2% 13.5% Million CHF (if not otherwise stated) +/-Q4 Key financial figures – Q4 2011 8 Financial results 2011 © 2012 Holcim Ltd/Switzerland LFL CIS FX Total Sales volumes - Cement (mt) 131.9 136.7 144.3 5.5% 0.1% 5.6% - Aggregates (mt) 143.4 157.9 173.0 5.6% 4.0% 9.6% - Ready-mix (mm 3 ) 41.8 45.9 48.4 2.2% 3.2% 5.4% Net sales 21,132 21,653 20,744 7.5% 0.8% -12.5% -4.2% Operating EBITDA 4,630 4,513 3,958 -0.2% 0.2% -12.3% -12.3% Operating profit 2,781 2,619 1,933 -14.7% -0.5% -11.0% -26.2% Net income 1,958 1,621 682 -52.3% -0.4% -5.2% -57.9% Net income attr. to Holcim shareholders 1,471 1,182 275 -74.9% -0.5% -1.3% -76.7% Cash flow 3,888 3,659 2,753 -14.0% -0.3% -10.5% -24.8% EPS CHF 1 4.93 3.69 0.86 -76.7% Dividend / payout per share CHF 1.50 1.50 1.00 2 -33.3% Million CHF (if not otherwise stated) +/- 2009 2010 2011 Key financial figures – Full year 2011 1 Calculated on the weighted average number of shares outstanding 2 Proposed by the Board of Directors for a payout from capital contribution reserves 9 Financial results 2011 © 2012 Holcim Ltd/Switzerland Net sales 21,653 20,744 20,744 -4.2% Operating EBITDA 4,513 3,958 17 1 3,975 -11.9% Depreciation -1,894 -2,025 359 2 -1,666 -12.0% Operating profit 2,619 1,933 375 2,308 -11.9% Financial expenses -897 -1,210 415 3 -795 -11.4% Income taxes -615 -449 15 4 -464 -24.6% Net income 1,621 682 775 1,457 -10.1% Net income attr. to Holcim shareholders 1,182 275 775 1,050 -11.2% EPS CHF 5 3.69 0.86 3.28 -11.1% Million CHF (if not otherwise stated) 2010 2011 Pro forma 2011 One-off items vs. 2010 Reconciliation of impairment charges on results 1 Environmental provisions related to the closures in North America 2 Impairment charges of which CHF 327 million related to Europe and CHF 32 million related to North America 3 Impairment and reclassification of foreign exchange losses related to AfriSam 4 Tax effect related to impairment charges 5 Calculated on the weighted average number of shares outstanding [...]... Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 15 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Net sales Million CHF Like-for-Like (LFL) Change in structure Forex movements Total change -2,510 -10.0% 195 0.8% -1,710 -6.8% -4,025 -16.0% -444 -2.1% 1,147 5.4% -182 -0.8% 521 2.5% 1,632 7.5% 171 0.8% -2,712 -12.5% -909 -4.2% 16 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Net sales by region... © 2012 Holcim Ltd/ Switzerland Financial results 2011 Aggregates – Sales volumes by region Million t Total Group 2009 143.4 2010 157.9 2011 173.0  2010 /2011 Europe North America Latin America Africa Middle East Asia Pacific Total LFL 3.3% 2.4% 18.7% -7.0% 12.6% 5.6% Change in structure 3.7% 8.7% 0.0% 0.0% 0.0% 4.0% Total 7.0% 11.0% 18.7% -7.0% 12.6% 9.6% 12 © 2012 Holcim Ltd/ Switzerland Financial results. .. 4.5% 18 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Operating EBITDA Million CHF Like-for-Like (LFL) Change in structure Forex movements Total change Margin -270 -39 -394 -703 -5.1% -0.7% -7.4% -13.2% -284 -6.1% 188 4.1% -21 -0.5% -117 -2.5% -11 -0.2% 11 0.2% -556 -12.3% -556 -12.3% 19 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Operating EBITDA by region Million CHF 1  2010 /2011 Europe... 6.9% -100.4% -0.1% -0.2% -13.5% -13.8% -2.4% 0.0% -11.6% -14.0% 10.3% 0.0% -14.1% -3.8% -14.7% -0.5% -11.0% -26.2% 22 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Net income Million CHF -12.0% -17.5% -17.2% -19.6% -57.9% -76.7% 23 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Cash flow from operating activities Million CHF Like-for-Like (LFL) Change in structure Forex movements Total change... develop skills to support strategic goals and commercial & operational excellence  31 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Capacity expansion at ACC in East India Sindri grinding plant, expansion: 1.35 million t Kharagpur grinding plant, new: 2.7 million t Jamul cement plant, replacement/expansion: 1.1 million t / / / © 2012 Holcim Ltd/ Switzerland Cement plant ACC / ACL Capacity expansion... the scope of consolidation Effective as at + Est Granulats, Aube Bétons and Hupfer AG (Moldau) + Lattimore Materials Inc January 1, 2011 March 4, 2011 +/– Various smaller companies 10 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Cement – Sales volumes by region Million t Total Group 2009 131.9 2010 136.7 2011 144.3  2010 /2011 Europe North America Latin America Africa Middle East Asia Pacific... negative Current financial liabilities adjusted for short-term drawings under long-term committed credit lines © 2012 Holcim Ltd/ Switzerland 27 Financial results 2011 100 years of Holcim  On February 15, 2012, Holcim celebrated 100 years in business  From a cement plant in Holderbank, Holcim evolved into a leading construction materials Group  Dominik Flammer has described the company's history... volunteering activities, employees thank the communities and neighbors at production sites 28 © 2012 Holcim Ltd/ Switzerland Financial results 2011 A great company with upside potential  A very well organized CEO transition  Strong strategy and strategy processes  Committed leaders and employees  A "deliver" culture with close attention paid to costs and prices  A sound balance sheet  Multiple opportunities... Constantly optimize strategic footprint and review growth opportunities  Be open to selective divestments if/when it makes sense   Reduce Total Cost of Ownership of future expansion capex 30 © 2012 Holcim Ltd/ Switzerland Financial results 2011 Areas of focus  Engage and develop employees and leaders Health & Safety: journey to "Zero Harm to People"  Develop leaders and promote best practice exchange... 2011 Financial position Million CHF Debt ratios FFO1/Net financial debt 2009 2010 2011 27.6% 31.3% 26.4% 2.6x 2.3x 2.7x Net financial debt/EBITDA 1 Net income plus depreciation, amortization and impairment © 2012 Holcim Ltd/ Switzerland 26 Financial results 2011 Financial debt, maturities and liquidity as of December 31, 2011 Maturity profile (CHF million) Liquidity summary 5'000 Loans Capital markets . © 2012 Holcim Ltd/ Switzerland First cement plant in Holderbank (Switzerland) Results 2011 and Outlook 1 Financial results 2011 © 2012 Holcim Ltd/ Switzerland Holcim at a glance . 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Net sales impact Operating EBITDA impact Sales impact EBITDA impact Million CHF 16 Financial results 2011 © 2012 Holcim Ltd/ Switzerland Like-for-Like. Group 2009 143.4 2010 157.9 2011 173.0 Million t 13 Financial results 2011 © 2012 Holcim Ltd/ Switzerland Ready-mix concrete and asphalt – Sales volumes by region  2010 /2011 * LFL Change in structure Total Europe