2006 results and outlook for 2007 holcim switzerland

©2007 Holcim/Switzerland 2006 results and outlook for 2007 1 2006 results©2007 Holcim/Switzerland Key facts at a glance  Record result and strong organic growth  Stake in Ambuja Cements strengthens position in India  Acquisitions in USA and UK underline significance of aggregates segment  Growth in all Group regions  Innovation in terms of markets, products and processes  Recognition as leader in area of sustainable development  Proposal for higher dividend 2 2006 results©2007 Holcim/Switzerland Facts on Europe  Healthy order books in construction sector  Substantially higher cement sales in several markets  Volumes of aggregates and ready-mix concrete up  Improved prices and greater efficiency  Operating EBITDA increases by 22.5 percent  Internal operating EBITDA growth of 14.9 percent 3 2006 results©2007 Holcim/Switzerland Facts on North America  Solid demand in infrastructure and commercial construction, residential construction weak  Local cement production up  Meyer Material strengthens aggregates and ready-mix concrete  Holcim US and St. Lawrence Cement post record results  Operating EBITDA 11.3 percent higher  Internal operating EBITDA growth of 11.7 percent 4 2006 results©2007 Holcim/Switzerland Facts on Latin America  Domestic demand and exports accelerate growth  Higher cement sales volumes posted by all companies  Strong increase in aggregates and ready-mix concrete  Some significantly higher results seen thanks to better prices  Operating EBITDA up by 10.5 percent  Internal operating EBITDA growth of 10.4 percent 5 2006 results©2007 Holcim/Switzerland Facts on Africa Middle East  Economic environment intact, and generally sound construction activity  Cement deliveries up significantly in some cases  Increase in volumes of aggregates and ready-mix concrete sold  With the exception of Holcim Lebanon, better results achieved  Operating EBITDA 12.7 percent higher  Internal operating EBITDA growth of 17.8 percent 6 2006 results©2007 Holcim/Switzerland Facts on Asia Pacific  Huge demand for infrastructure and residential construction  Strong rise in cement sales thanks to new consolidation of ACC/Ambuja Cements in India  New consolidations lift ready-mix concrete deliveries  Several Group companies achieve better results  Operating EBITDA increases 139.6 percent  Internal operating EBITDA growth of 5.3 percent 7 2006 results©2007 Holcim/Switzerland Key financial figures 1 adjusted in line with revised IFRS 2 before goodwill amortization 3 proposal of the board of directors LFL CIS FX in CHF Net sales 13,215 18,468 23,969 9.0% 19.5% 1.3% 29.8% Operating EBITDA 3,588 4,627 6,086 13.2% 17.5% 0.8% 31.5% Operating profit 2,511 2 3,316 4,385 17.0% 14.6% 0.6% 32.2% Net income 1,128 1,789 2,719 0.7% 52.0% Cash flow from operating activities 2,622 3,405 4,423 20.4% 8.6% 0.9% 29.9% EPS in CHF 4.21 6.61 8.64 0.9% 30.7% Dividend per share in CHF 1.25 1.65 2.00 3 21.2% Dividend payment 286 382 509 3 33.2% Million CHF +/- 2004 1 2005 1 2006 8 2006 results©2007 Holcim/Switzerland Major changes in the scope of consolidation Effective as at + Aggregate Industries, UK/US March 21, 2005 + Ambuja Cement Eastern, India April 11, 2005 + ACC, India January 24, 2006 + Gujarat Ambuja Cements, India May 3, 2006 + Meyer Material, US July 21, 2006 + Foster Yeoman, UK September 7, 2006 +/– Various smaller companies 9 2006 results©2007 Holcim/Switzerland Exchange rates Statement of income average exchange rates in CHF 2004 2005 2006 +/- 1 EUR 1.54 1.55 1.58 1.9% 1 GBP 2.27 2.27 2.31 1.8% 1 USD 1.24 1.25 1.25 0.0% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 0.94 1.00 1.02 2.0% 1 African Basket (EGP, ZAR, MAD) 1 0.98 1.00 0.97 -3.0% 1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 1.00 1.00 1.05 5.0% Balance sheet exchange rates in CHF 31/12/04 31/12/05 31/12/06 +/- 1 EUR 1.55 1.56 1.61 3.2% 1 GBP 2.18 2.26 2.40 6.2% 1 USD 1.14 1.32 1.22 -7.6% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 0.82 1.00 0.92 -8.0% 1 African Basket (EGP, ZAR, MAD) 1 0.96 1.00 0.89 -11.0% 1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 0.90 1.00 1.02 2.0% 1 weighted by net sales full year 2005 [...]... 0.2% 8.5% 15.5% 0.0% 10.8% 13 2007 Holcim/ Switzerland 2006 results Ready-mix concrete and asphalt – sales volumes Ready-mix concrete in million m3 Asphalt in million t +23.9% 44.2 38.2 +15.7% 29.3 +30.4% +8.5% 15.3 13.3 0.2 2004 +15.0% 2005 2006 14 2007 Holcim/ Switzerland 2006 results Net sales Million CHF 23,969 18,468 13,215 Like -for- Like (LFL) Change in structure Forex movements Total change 908... 23.2% 17.3% 16.4% 11.4% 107.4% 29.8% 16 2007 Holcim/ Switzerland 2006 results Net sales by region Net sales 2006 North America 22.3% Europe 35.1% Asia Pacific 19.2% Latin America 14.9% Africa Middle East 8.5% 17 2007 Holcim/ Switzerland 2006 results Operating EBITDA Million CHF 27.2% Margin 1 25.1% 26.0% 25.4% 6,086 4,627 3,588 Like -for- Like (LFL) Change in structure Forex movements Total change 376 11.4%... like -for- like basis 2007 Holcim/ Switzerland 377 10.5% 607 16.9% 55 1.6% 1,039 29.0% 2005 611 13.2% 809 17.5% 39 0.8% 1,459 31.5% 2006 18 2006 results Operating EBITDA by region Million CHF 2004* 2005 2006 1966 1605 1202 1033 928 551 1366 483 1095 1126 1244 614 Δ 2005 /2006 Europe North America Latin America Africa Middle East Asia Pacific Total * adjusted to exclude certain Group charges 2007 Holcim/ Switzerland. .. margin (%) for: Standard & Poor's Rating Fitch Rating 1 adjusted in line with revised IFRS 2007 Holcim/ Switzerland 28 2006 results Holcim Foundation for Sustainable Construction First competition cycle completed Over 3,000 projects submitted 46 projects win regional awards 4 projects receive global accolades Close collaboration with ETH in Zurich and four other universities of renown Platform for innovation... identified in Sri Lanka 30 2007 Holcim/ Switzerland 2006 results Buyout of minorities at St Lawrence Cement Stake in St Lawrence Cement (Canada) since 1953 Holcim holds 79 percent of the company's voting rights Offer corresponds to a premium of 21 percent CAD 571 million to acquire all shares Closer integration of St Lawrence Cement into the Group 31 2007 Holcim/ Switzerland 2006 results Dynamic expansion... Pacific Total Group 2007 2008 2009 1.8 0.6 4.0 2.4 4.4 8.0 12.6 2.3 15.5 24.6 0.4 1.7 6.2 8.3 0.6 1.3 3.7 as of 2010 * Approved Group company projects; partly under construction 33 2007 Holcim/ Switzerland 2006 results Outlook for 2007 In 2006 the Group profited not only from a wider scope of consolidation and a dynamic building sector, but also from exceptionally favorable weather for construction activity... 18.3% 4,385 3,316 2,511 Like -for- Like (LFL) Change in structure Forex movements Total change 1 margin on a like -for- like basis 2 before goodwill amortization 2007 Holcim/ Switzerland 416 19.3% 20 0.9% -82 -3.8% 354 16.4% 2004 2 401 16.0% 362 14.4% 42 1.7% 805 32.1% 2005 564 17.0% 483 14.6% 22 0.6% 1,069 32.2% 2006 21 2006 results Operating profit by region Million CHF 2004* 2005 2006 1402 1125 639 677 850... construction activity Despite the slowdown in some markets, Holcim will reach again in 2007 the long-term growth target of 5 percent in internal operating EBITDA 34 2007 Holcim/ Switzerland 2006 results Cement – Price/volume variances per region Domestic cement prices Domestic cement volumes +/- 2005 /2006 * +/- 2005 /2006 Europe Belgium France Germany Switzerland Italy Hungary Czech Republic Slovakia Croatia... Platform for innovation and expertise in the area of sustainable construction Next cycle to be opened in Shanghai 29 2007 Holcim/ Switzerland 2006 results Partnership with World Conservation Union Holcim launches initiative with World Conservation Union Measures to protect ecosystems in quarries Development of a comprehensive policy and strategy Definition of new standards and promotion of good practices... Net income Net income - equity holders of Holcim Ltd 2,719 +52.0% 2,104 1,789 1,511 +39.2% +55.7% 1,128 889 +66.0% +21.6% +30.4% 2004 1 1 adjusted in line with revised IFRS 2007 Holcim/ Switzerland 2005 1 2006 23 2006 results Cash flow from operating activities Million CHF Margin 19.8% 18.4% 20.4% 1 18.5% 4,423 3,405 2,622 Like -for- Like (LFL) Change in structure Forex movements Total change 62 2.4% 24 . 2007 Holcim/ Switzerland 2006 results and outlook for 2007 1 2006 results 2007 Holcim/ Switzerland Key facts at a glance  Record result and strong organic growth . 24, 2006 + Gujarat Ambuja Cements, India May 3, 2006 + Meyer Material, US July 21, 2006 + Foster Yeoman, UK September 7, 2006 +/– Various smaller companies 9 2006 results 2007 Holcim/ Switzerland Exchange. concrete  Holcim US and St. Lawrence Cement post record results  Operating EBITDA 11.3 percent higher  Internal operating EBITDA growth of 11.7 percent 4 2006 results 2007 Holcim/ Switzerland Facts