© 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