Strength. Performance. Passion. Bellevue Meets Management Seminar Thomas Aebischer, CFO Flims, January 10, 2014 © 2014 Holcim Ltd © 2014 Holcim Ltd Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership Journey Society's future: Sustainable development and innovation Holcim sustainability: Safety and development of leaders Conclusions Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Holcim at a glance 130 cement plants around 200 limestone quarries / 450 aggregates operations 1’150 RMX plants in the world 74’000 employees over 5’000 own RMX trucks / more than 3’000 subcontracted over 1’600’000’000 cement bags sold Presence on all five continents and in around 70 countries 2012 Net sales of CHF 21.5 bn and operating EBITDA of CHF 4.0 bn 3 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Cement the biggest earnings contributor in a well balanced global portfolio Net sales per region 15% 26.1% 36% 4.3% 17% Op. EBITDA per region 12% 22% 36% 7% 23% Africa Middle East Europe Asia Pacific North America Latin America Other Construction Materials and Services Cement Aggregates Net sales per segment 11% 59% 30% Op. EBITDA per segment 5% 84% 28% Nine months figures as of September 30, 2013 11% 4% 4 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership Journey Society's future: Sustainable development and innovation Holcim sustainability: Safety, compliance, development of leaders Conclusions Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Rapid urbanization: In 2010, for the first time in history urban population exceeded rural population São Paulo 6 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Growing demand for housing and infrastructure Shanghai 7 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 8 Europe 37% 45% 55% 22% 78% 16% 84% North America 10% Asia Pacific 30% Latin America 8% Africa Middle East 14% Europe 18% North America 6% Latin America 11% Asia Pacific 38% Africa Middle East 27% Europe 13% North America 5% Latin America 10% Asia Pacific 42% Africa Middle East 29% 1990 2012 2030 1990: ~0.8 Bn t 2012: ~1.6 Bn t 2030*: ~2.7 Bn t Cement demand Split Mature vs. Emerging markets Cement demand evolution by region, excl. China Mature Emerging *Source: BMI, Holcim estimates Long-term cement consumption growth is driven by emerging markets and recovery in Europe and US Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 9 5 60 18 26 26 11 19 3 5 65* 4 12 7 11 Holcim cement capacity as of September 30, 2013: 207 Mt Holcim is well positioned to address growth in cement demand * China not consolidated Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership Journey Society's future: Sustainable development and innovation Holcim sustainability: Safety and development of leaders Conclusions Bellevue meets Management Seminar 2014 [...]... (TSR) Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 21 Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership Journey Society's future: Sustainable development and innovation Holcim sustainability: Safety and development of leaders Conclusions Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd The OH&S key attributes of being a leader in Holcim. .. structure and technology Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 26 Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership Journey Society's future: Sustainable development and innovation Holcim sustainability: Safety and development of leaders Conclusions Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Conclusions • Long-term cement consumption... ROICAT > 8%* by 2014 *Under similar markets conditions Corresponds to a ROICBT of > 11.8% Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 11 Holcim Leadership Journey is on track All figures in million CHF 2012 Target Customer Excellence (operating profit impact) 2013 Cumulative Target achieved 2014 Cumulative Target 9M 50 -100 31 150-200 95 500 100 -200 127 400-500 531 > 1,000 146 104 131 151 >... Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 23 Rewarding Excellence North America & UK Europe 9 21 5 5 1 Entries Shortlist Winners Entries 1 Shortlist Winners SESA 31 5 Entries Latin America Africa Middle East 22 Entries Shortlist Winners East Asia Oceania 12 7 2 3 3 6 2 Shortlist Winners Bellevue meets Management Seminar 2014 1 1 Entries Shortlist Winners Entries Shortlist Winners © 2014. .. production 730 710 690 KgCO2/ton 670 650 • Net CO2 emissions per ton of cement are a key indicator for process and resource efficiency Average 630 610 590 Holcim 570 550 2008 2009 2 010 2011 2012 Source: Annual sustainability reports, average industry assumed from PwC-GNR report Holcim has lowest CO2 emissions per ton of cement in the industry Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 16 Holcim. .. energy fund of CHF 100 million will be maintained through the period 2012 – 2014 Original amount was projected < CHF 120 million for 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 12 Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership... operations Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 17 …and valorizes waste as alternative fuel and material Sources of Green House Gas emissions 5% 30% Cement industry 31% 18% 4% 12% Industry Buildings Transportation Waste Other Direct and indirect sources; excluding emissions from forestry and agriculture Source: IPCC Efficient for economic, social and environmental reasons Bellevue meets Management. .. strategy and positioning based on long term growth Holcim Leadership Journey Society's future: Sustainable development and innovation Holcim sustainability: Safety and development of leaders Conclusions Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd By 2020 ~60% of Holcim sales should be in markets with CO2 regulations Canada: regulations in Quebec, Ontario, British Columbia, Alberta EU-EFTA:... Concrete is one of the most eco-friendly building material over the life cycle of the product Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 20 The business case for sustainable development • Sustainable development is our license to operate • Sustainability is not philanthropy but a sound business case • Holcim s sustainability initiatives lead to a reduction in the use or emission of energy,... Management Seminar 2014 © 2014 Holcim Ltd 14 Holcim has taken substantial measures to improve energy efficiency and to reduce CO2 emissions… Substantial change in energy mix (in TJ equivalents) 1990 Holcim specific CO2 emissions 2012 kgCO2/t cem % improvement 800 750 -10 650 -15 600 -20 550 -25 500 -30 Energy from waste Biomass -5 700 Power (electricity) 0 Traditional (coal, petcoke etc.) 1990 2000 2005 2010 . Strength. Performance. Passion. Bellevue Meets Management Seminar Thomas Aebischer, CFO Flims, January 10, 2014 © 2014 Holcim Ltd © 2014 Holcim Ltd Agenda Holcim at a Glance Holcim. São Paulo 6 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Growing demand for housing and infrastructure Shanghai 7 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd 8. 30, 2013 11% 4% 4 Bellevue meets Management Seminar 2014 © 2014 Holcim Ltd Agenda Holcim at a Glance Holcim strategy and positioning based on long term growth Holcim Leadership Journey