© 2013 Holcim Ltd Davy Industrials Conference New York, September 10, 2013 © 2013 Holcim Ltd © 2013 Holcim Ltd Holcim at a glance Holcim’s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook Agenda © 2013 Holcim Ltd Davy Industrials Conference 2013 3 Product focus – two core segments and their channels Cement Aggregates Net sales CHF 21.5 billion Cement Clinker Product segments 2012 Net sales per segment 2012 217.5 million tonnes production capacity 147 cement and grinding plants Sales: 148.0 million tonnes 470 aggregates plants Sales: 159.7 million tonnes 1,286 RMX plants 99 asphalt plants Sales of ready-mix concrete: 46.9 million m 3 Sales of asphalt: 9.1 million tonnes Aggregates Other construction materials & services 10.4% 58.0% 31.6% Op. EBITDA per segment 2012 Op. EBITDA CHF 4.0 billion 3.4% 86.5% 10.1% Other Construction Materials and Services © 2013 Holcim Ltd Holcim – well balanced global portfolio Africa Middle East Europe Net sales per region 2012 14.7% 26.1% 39.2% 4.3% 15.7% Europe Sales volumes per region 2012 North America Latin America Africa Middle East Asia Pacific (million t or m 3 ) Net sales CHF 21.5 billion Op. EBITDA per region 2012 Op. EBITDA CHF 4.0 billion 11.4% 14.9% 44.4% 6.6% 22.7% • Cement 79.2 • Aggregates 27.8 • Ready-mix concrete 12.8 • Cement 24.9 • Aggregates 14.0 • Ready-mix concrete 10.2 • Cement 26.3 • Aggregates 74.3 • Ready-mix concrete 14.7 • Cement 12.0 • Aggregates 41.3 • Ready-mix concrete 8.1 • Cement 8.4 • Aggregates 2.3 • Ready-mix concrete 1.1 Asia Pacific North America Latin America Davy Industrials Conference 2013 4 © 2013 Holcim Ltd Holcim at a glance Holcim’s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook Agenda © 2013 Holcim Ltd Holcim’s Strategy House – base for value creation Creation of Value Mindsets Strategy Goal Base Product Focus Geographic Diversification Local Management Global Standards People Better Cost Management Permanent Marketing Innovation Human Resources Excellence Corporate Social Responsibility Sustainable Environmental Performance Davy Industrials Conference 2013 6 © 2013 Holcim Ltd Holcim Value Chain Transactional Mortars Ready -mix Concrete Asphalt Concrete Products Direct Sales Direct Sales Traders Wholesalers Retailers Traders Wholesalers Retailers End - users General Contractors Civil Engineering Channels Transformational Masons Self - builders Cementitious Materials (cement, mineral components) Supply Basic Materials Processing Aggregates (sand, gravel, stone, recycled aggregates) Infrastructure Commercial / Industrial Building Housing Demand A p p l i c a t i o n s Applications and Construction Fields Davy Industrials Conference 2013 7 © 2013 Holcim Ltd Market maturity defines investment focus Added value through business integration Market maturity Ready-mix Concrete Aggregates Cement India Mexico Eastern Europe France, Spain N. America, UK Emerging markets Transition markets Mature markets Value Added Businesses Davy Industrials Conference 2013 8 © 2013 Holcim Ltd Positioning – Holcim’s cement market portfolio Cumulated population Growth 2012 - 2017E -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% GDP per capita (at PPP) CAGR 2012 - 2017E Western Europe 25.9 Mt Eastern Europe 23.3 Mt Africa Middle East 23.2 Mt Mature markets Emerging markets Size of circles represents influenced capacity 2012 North America 22.0 Mt India 60.5 Mt China 60.0 Mt Asia Pacific excl. India, Oceania, China 43.5 Mt Latin America 35.5 Mt Demand growth Oceania 4.8 Mt Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 Davy Industrials Conference 2013 9 © 2013 Holcim Ltd Positioning – Holcim’s aggregates market portfolio -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Western Europe 64.8 Mt Africa Middle East 2.3 Mt Latin America 14.0 Mt North America 41.3 Mt Asia excl. Oceania 3.8 Mt Mature markets Emerging markets Size of circles represents consolidated sales volumes 2012 Eastern Europe 9.5 Mt Demand growth GDP per capita (at PPP) CAGR 2012 - 2017E Cumulated population Growth 2012 - 2017E Oceania 23.9 Mt Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 Davy Industrials Conference 2013 10 [...]... years and 5 years preceding July 23, 2013 based on NSE prices Davy Industrials Conference 2013 © 2013 Holcim Ltd 22 Agenda Holcim at a glance Holcim s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook © 2013 Holcim Ltd Key financial figures – H1 2013 Million CHF (if not otherwise stated)... local currencies Davy Industrials Conference 2013 1 Weighted -0.2% 2.1% -5.7% 26.1% -26.0% 12.2% 5.8% -27.7% 13.8% -35.4% -9.2% -8.5% -10. 0% average like-for-like © 2013 Holcim Ltd 33 Positions in Europe Cement plant Grinding plant/ terminal Aggregates Participation: Cement plant 1 Under construction Cement capacity*: 47.9 Mt * as of June 30, 2013 Davy Industrials Conference 2013 © 2013 Holcim Ltd 34... Grinding plant/ terminal Aggregates * as of June 30, 2013 Davy Industrials Conference 2013 © 2013 Holcim Ltd 35 Positions in Latin America Cement plant Grinding plant/terminal Aggregates Participation: Cement plant 1 Grinding plant/terminal Aggregates 1 Under construction Cement capacity*: 35.2 Mt * as of June 30, 2013 Davy Industrials Conference 2013 © 2013 Holcim Ltd 36 ... million for 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage Davy Industrials Conference 2013 © 2013 Holcim Ltd 13 Agenda Holcim at a glance Holcim s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook © 2013 Holcim Ltd Value... economic upturn Holcim Cemex Integrated cement plants (#) 3 6 Grinding stations (#) 1 2 Cement Capacity (Mt) 3.5 9.4 Aggregates quarries (#) 30 30 Ready-Mix plants (#) 57 63 as of August 2013 • Holcim to remain shareholder of the combined entity for at least 5 years Davy Industrials Conference 2013 © 2013 Holcim Ltd 18 Unlocking Synergies Deriving Further Value from the India Platform © 2013 Holcim Ltd... ROICAT > 8%* by 2014 • In similar markets conditions Corresponds to a ROICBT of > 11.8% Davy Industrials Conference 2013 © 2013 Holcim Ltd 12 Holcim Leadership Journey is on track All figures in million CHF 2012 Target Customer Excellence (operating profit impact) 2013 achieved Target 2014 6M 50 -100 31 150-200 47 500 100 -200 127 400-500 329 > 1,000 126 52 39 111 > 300 > 250 > 250 > 200 376 > 1,500 -Customer... Executive Committee expect a further improvement of margins The Holcim Leadership Journey, which gains further momentum, will contribute to this development Under similar market conditions, organic growth in operating EBITDA and operating profit should be achieved in 2013 Davy Industrials Conference 2013 © 2013 Holcim Ltd 25 Cost and capex guidance for 2013 • Energy costs of around CHF 16 per ton of cement... as of July 16, 2013 0 10y • S&P Credit Rating: A-2 / BBB, outlook stable • Fitch Credit Rating: F2 / BBB, outlook stable • Moody’s Credit Rating: P2 / Baa2, outlook stable 1 After risk-related adjustments of CHF 540 million from current financial liabilities to long-term financial liabilities Davy Industrials Conference 2013 © 2013 Holcim Ltd 27 Cement... bn) Step I: ACL acquires 24% of Holcim India for INR 3,500 core (USD ~0.6 bn) Step II: ACL issues net 434 mio equity shares for a total value of INR 8,226 crore (USD ~1.4 bn) to Holcim post cancellation of Holcim India’s 9.76% stake in ACL upon merger • The transaction steps are inter-linked and subject to requisite approvals Davy Industrials Conference 2013 © 2013 Holcim Ltd 20 Value creation opportunity... Ltd ACL acquires Holcim s 50.01% equity stake in ACC Evolution of current to target shareholder structure Interlinked transaction steps Step I: Acquire 24% in Holcim India 40.79% 0.29% Holcim Step II: Merge Holcim India into ACL 40.79% 76% 24% 76% 24% Holcim India 9.76% ACL 0.29% Holcim ACC ACL Holcim 0.29% 61.39% Holcim India 9.76% 50.01% Target Structure ACL 50.01% ACC 50.01% ACC • Holcim India value . © 2013 Holcim Ltd Davy Industrials Conference New York, September 10, 2013 © 2013 Holcim Ltd © 2013 Holcim Ltd Holcim at a glance Holcim s Strategy House – base for value creation Holcim. August 2013 Davy Industrials Conference 2013 18 © 2013 Holcim Ltd Unlocking Synergies Deriving Further Value from the India Platform © 2013 Holcim Ltd © 2013 Holcim Ltd ACL acquires Holcim s. 2017E Oceania 23.9 Mt Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 Davy Industrials Conference 2013 10 © 2013 Holcim Ltd Holcim at a glance Holcim s Strategy House