Strength. Performance. Passion. Vontobel Summer Conference Bernhard A. Fuchs, Head Investor Relations John M. Feigl, Investor Relations Officer © 2013 Holcim Ltd Agenda 2 Holcim Leadership Journey is on track Holcim’s Strategy House – base for value creation Key financial figures 1st Quarter 2013 Vontobel Summer Conference © 2013 Holcim Ltd Holcim Leadership Journey is on track 3 All figures in million CHF 2012 2013 2014 Target achieved Target Q1 Customer Excellence (operating profit impact) 50-100 31 150-200 26 500 -Customer focus -Value management -Pricing policies -Marketing and sales forces skills and motivation Cost Leadership (operating profit impact) 100-200 127 400-500 143 > 1,000 -Energy and AFR 40 32 > 300 -Logistics 029> 250 -Procurement 48 27 > 250 -Fixed cost 39 55 > 200 Total increase in operating profit 1) 150-300 158 550-700 169 > 1,500 Cash cost to achieve the savings (one-off) < 80 239 3) 0 3) 0 Additional CAPEX net 2) 0-40 48 100-180 15 100-180 1) The base line is the financial year 2011 amounting to CHF 2,308 million (excluding one-off charges 2011 of CHF 375 m and without fluctuations in currency, changes in scope of consolidation and similar market conditions) 2) Additional CAPEX net will come from prioritization of CAPEX based on the speed of the returns (ROIC). Current energy fund of CHF 100 million will be maintained through the period 2012 – 2014 3) 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 Vontobel Summer Conference © 2013 Holcim Ltd Value creation through new solutions and innovation 4 Innovation is paramount to sustain attractive profits and address the increasing speed of change, customer demand, society and other stakeholders Vontobel Summer Conference © 2013 Holcim Ltd Growing ROIC through different levers Combining these three levers of growth Holcim is able to capture the market growth, the growth coming from customer excellence and in addition the growth coming from cost leadership and efficiency improvements that together result in a considerable increase of ROIC ROIC Cost Leadership Customer Excellence Selective divestments Investment efficiency Market growth NWC improvement Internal External Holcim Leadership Journey + 5 Vontobel Summer Conference © 2013 Holcim Ltd Agenda 6 Holcim Leadership Journey is on track Holcim’s Strategy House – base for value creation Key financial figures 1st Quarter 2013 Vontobel Summer Conference © 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 7 Vontobel Summer Conference © 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 8 Vontobel Summer Conference © 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 9 Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 Vontobel Summer Conference © 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 10 Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 Vontobel Summer Conference [...]... in North America Cement plant Grinding plant/ terminal Aggregates Cement capacity: 22.0 million t Vontobel Summer Conference © 2013 Holcim Ltd 30 Positions in Latin America Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal 1 Aggregates 1 Under construction Cement capacity: 35.7 million t; further 0.2 million t with partners Vontobel Summer Conference. .. Cement • Aggregates • Ready-mix concrete 8.4 2.3 1.1 Vontobel Summer Conference Asia Pacific North America Latin America 6.6% Africa Middle East Europe © 2013 Holcim Ltd 12 Agenda Holcim Leadership Journey is on track Holcim s Strategy House – base for value creation Key financial figures 1st Quarter 2013 Vontobel Summer Conference © 2013 Holcim Ltd 13 Key financial figures 1st Quarter 2013 Million CHF... 2013 Holcim Ltd 31 Positions in Africa Middle East 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Aggregates Cement capacity: 10.7 million t; further 12.5 million t with partners Vontobel Summer Conference © 2013 Holcim Ltd 32 Positions in Asia Pacific 1 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal... plant/terminal 1 1 Under construction Cement capacity: 100.1 million t; further 68.2 million t with partners Vontobel Summer Conference © 2013 Holcim Ltd 33 Positions in China Jiangsu Shaanxi Henan Anhui Sichuan Shanghai Hubei Shanghai Wuhan Zhejiang Hunan Jiangxi Vontobel Summer Conference Participation: Plant Grinding station / Terminal City © 2013 Holcim Ltd 34 Contact information and event calendar Contact... long-term financial liabilities Vontobel Summer Conference © 2013 Holcim Ltd 20 Outlook for 2013 • Asia Pacific: Unchanged positive development in Asia, stable Pacific Rim • Latin America: Higher demand for construction materials • Europe: Only slight decrease in sales volumes; positive development of construction activity in Russia and Azerbaijan • North America: Increase in sales volumes in the US and Canada... www .holcim. com/subscribe Vontobel Summer Conference © 2013 Holcim Ltd 35 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... indicated calculation based on local currencies -7.8% -5.0% -8.1% -23.9% -14.7% -9.5% 1 Weighted average like-for-like Vontobel Summer Conference © 2013 Holcim Ltd 27 Aggregates – Price/volume variances per region Domestic aggregates prices ∆ Q1 12/Q1 13 * Europe 1 United Kingdom Belgium France Germany Switzerland Italy Romania Bulgaria Spain North America Canada United States Domestic aggregates volumes... Canada • Africa Middle East: Muted demand at previous year’s level Turning to operating EBITDA and operating profit, the Board of Directors and Executive Committee expect a further improvement of margins The Holcim Leadership Journey, which will gain further momentum in all streams as planned, will also contribute to this development Under similar market conditions, significant organic growth in operating... 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 quarter 2013 has been restated for each financial statement line item in this presentation Vontobel Summer Conference © 2013 Holcim Ltd 14 Net sales by region Net sales Q1 2013 Vontobel Summer. .. ready-mix concrete: 46.9 million m3 Sales of asphalt: 9.1 million tonnes Vontobel Summer Conference Op EBITDA per segment 2012 Op EBITDA CHF 4.0 billion 3.4% 86.5% 10.1% Cement Aggregates Other Construction Materials and Services © 2013 Holcim Ltd 11 Holcim – well balanced global portfolio Sales volumes per region 2012 Asia Pacific Latin America Net sales per region 2012 (million t or m3 ) • Cement . Strength. Performance. Passion. Vontobel Summer Conference Bernhard A. Fuchs, Head Investor Relations John M. Feigl, Investor Relations Officer © 2013 Holcim Ltd Agenda 2 Holcim Leadership. India, Oceania, China 43.5 Mt Latin America 35.5 Mt Demand growth Oceania 4.8 Mt 9 Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 Vontobel Summer Conference ©. Marketing Innovation Human Resources Excellence Corporate Social Responsibility Sustainable Environmental Performance 7 Vontobel Summer Conference © 2013 Holcim Ltd Holcim Value Chain Transactional Mortars Ready