© 2013 Holcim Ltd Investors Day – St.Galler Kantonalbank Bernhard A. Fuchs – September 12, 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 Investors Day 2013 – St.Galler Kantonalbank © 2013 Holcim Ltd 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 3 Investors Day 2013 – St.Galler Kantonalbank © 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 4 Investors Day 2013 – St.Galler Kantonalbank © 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 Investors Day 2013 – St.Galler Kantonalbank © 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 6 Investors Day 2013 – St.Galler Kantonalbank © 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 7 Investors Day 2013 – St.Galler Kantonalbank © 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 8 Investors Day 2013 – St.Galler Kantonalbank © 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 9 Investors Day 2013 – St.Galler Kantonalbank © 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 10 Investors Day 2013 – St.Galler Kantonalbank [...]... at this stage Investors Day 2013 – St. Galler Kantonalbank © 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 Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd Value creative portfolio adjustments in Europe © 2013 Holcim. ..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 Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd The Holcim Leadership Journey and a focused capital allocation to increase short and long term returns Holcim Leadership Journey Customer... 41.8% 46.0% Calculated on the weighted average number of shares outstanding Note: Due to the changes in accounting policies explained in note 2 of the interim financial statements, the comparative information for the first half and full year 2 012 has been restated for each financial statement line item Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd 23 Outlook for 2013 • Asia Pacific: Positive... to exist • Independent go-to-market strategy with strong dealer networks / distribution in respective markets Commit to India Group • Investment in Marwar Mundwa • Intent to increase economic ownership in ACC over time • ACC is a perfect fit, being a Holcim Group company already Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd 21 Agenda Holcim at a glance Holcim s Strategy House – base for... St. Galler Kantonalbank © 2013 Holcim Ltd 17 Strengthening geographic footprint in Germany and value creative combination in Spain Germany • Holcim to acquire Cemex’s operations in West Germany, consisting of 1 cement plant and 2 grinding stations (total cement capacity of 2.5 million tons), 22 aggregates locations, 79 ready-mix plants and 1 slag granulator • Strong German economy • Strengthened aggregates... 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 Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd 18 Unlocking Synergies Deriving Further Value from the India Platform © 2013 Holcim Ltd ACL acquires Holcim s 50.01%... House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd Key financial figures – H1 2013 Million CHF (if not otherwise stated) Sales volumes - Cement (mt) - Aggregates (mt) 3 - Ready-mix (mm ) Net sales Operating EBITDA Operating profit Net... www .holcim. com/subscribe Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd 25 Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the Group’s future business, development and economic performance Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited... Cost Leadership Customer focus Energy and AFR Value management Logistics Pricing policies Procurement Marketing and sales Fixed cost Capture demand through advice & service Optimization of cost base CHF 500 m > CHF 1 bn Operating profit increase of at least CHF 1.5 bn and ROICAT > 8%* by 2014 • In similar markets conditions Corresponds to a ROICBT of > 11.8% Investors Day 2013 – St. Galler Kantonalbank. .. post cancellation of Holcim India’s 9.76% stake in ACL upon merger • The transaction steps are inter-linked and subject to requisite approvals Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd 20 Value creation opportunity Improve Structure • More efficient capital structure & EPS accretive • Re-investment of cash into business • Collaboration under ‘India Management’ structure Unlock Synergies . © 2013 Holcim Ltd Investors Day – St. Galler Kantonalbank Bernhard A. Fuchs – September 12, 2013 © 2013 Holcim Ltd © 2013 Holcim Ltd Holcim at a glance Holcim s Strategy House – base for value. at this stage Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd Holcim at a glance Holcim s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management. Datastream – IMF: World Economic Outlook, January 2013 10 Investors Day 2013 – St. Galler Kantonalbank © 2013 Holcim Ltd Holcim at a glance Holcim s Strategy House – base for value creation Holcim