© 2009 Holcim Ltd Half-Year Results 2009 © Herzog & de Meuron 1 Half-Year Results 2009© 2009 Holcim Ltd Highlights Half-Year 2009 Due to its strong presence in growth markets, Holcim performed well in a difficult economic market environment and significantly increased its cash flow Robust organic growth in Asia Pacific, Latin America and Africa Middle East in the second quarter At 24.8 percent in the second quarter, operating EBITDA margin exceeds previous year’s 23.8 percent Strong balance sheet and sound liquidity Based on the successful cost management, the target for fixed cost reduction in 2009 has been increased from CHF 375 million to CHF 600 million Asia will continue to grow and Latin America and Africa Middle East are also likely to follow favorable trends; in Europe and North America, the stimulus programs will have a positive impact on demand building up gradually over the next year 2 Half-Year Results 2009© 2009 Holcim Ltd Europe: Sales of building materials still falling In some markets, the recession has intensified even more since the beginning of this year Spain, the UK and Eastern Europe including Russia and Azerbaijan are suffering from the economic downturn Group companies quickly adjusted production capacity in all seg- ments: Two kilns in Eastern Europe mothballed; Pleven plant in Bulgaria is presently only operating as a grinding station As previously announced, the Torredonjimeno plant in Spain was permanently closed in the second quarter of 2009 Despite cost-cutting measures in all areas, only the Group companies in Germany and Switzerland were able to match their prior-year performance Internal operating EBITDA development was at -44.8 percent (Q2: -29.8 percent) 3 Half-Year Results 2009© 2009 Holcim Ltd North America: Still no upturn The economic situation remained fraught but in the US, although the downturn became less severe in the second quarter Canada also reported a decline in overall economic output All Group companies registered a decline in deliveries Holcim US responded swiftly to the decline in the market and in addition to the closure of the Dundee and Clarksville plants moth- balled the Artesia and Mason City plants Aggregate Industries US systematically continued with measures to cut costs and reduce capacity The new Ste. Genevieve plant of Holcim US produced its first clinker in July Internal operating EBITDA development was at -57.3 percent (Q2: -35.7 percent) 4 Half-Year Results 2009© 2009 Holcim Ltd Latin America: Regionally mixed demand The global slowdown in growth had a mixed impact on Latin America Positive market trends in Ecuador and Colombia owing to the house- building and infrastructure sectors In the first half, Group companies in Mexico, El Salvador, Brazil, Chile and Argentina each mothballed one kiln line The ready-mix concrete network was streamlined in several markets Despite the deconsolidation of Holcim Venezuela, this Group region achieved good operating results in local currency terms Holcim increased its stake in Cemento El Salvador from 64 to more than 90 percent Internal operating EBITDA growth was 6.6 percent (Q2: 7.7 percent) 5 Half-Year Results 2009© 2009 Holcim Ltd Africa Middle East: Stable construction markets Despite slightly weaker economic growth, the development in Africa Middle East was largely stable High demand for building materials related to housebuilding and infrastructure projects in Morocco After a sluggish start of the year and a strike in the transportation sector, Holcim Morocco increased cement sales slightly The easing of political tensions in Lebanon stimulated construction activity and the Chekka plant produced at full capacity The commissioning of a second cement mill at National Cement in Abu Dhabi, strengthened the market position in the Gulf region Internal operating EBITDA development was -1.5 percent (Q2: 9.9 percent) 6 Half-Year Results 2009© 2009 Holcim Ltd Asia Pacific: Construction sector generally growing Construction activity remained lively in most countries of Asia Pacific In India in particular, high pent-up demand in the infrastructure sector and positive development of the agriculture sector The Indian Group companies significantly increased their cement sales in all regions of the country Holcim increased domestic deliveries of cement and ready-mix concrete in the Philippines and in Vietnam Despite predominantly unfavorable exchange rates, this Group region increased its operating EBITDA in Swiss francs Asia Pacific posted an internal operating EBITDA growth of 22.5 percent (Q2: 27.4 percent) 7 Half-Year Results 2009© 2009 Holcim Ltd Holcim in preparation for the next economic upturn Markets such as the US, UK, Spain and Eastern Europe are expected to remain challenging Asia, Latin America as well as Africa Middle East are likely to follow a favorable trend On balance, Holcim's strong footprint in the emerging markets partially offsets the negative EBITDA development in mature markets In Europe and North America, the stimulus programs will have a positive impact on demand building up gradually over the next year Investments will continue to be kept to a minimum, and current assets will be strictly managed Rigorous cost reduction, favorable development of cash flow, successful capital market and refinancing transactions as well as the strategic expansion in Australia and China provide the basis for strengthening the Group in preparation for the next economic upturn 8 Half-Year Results 2009© 2009 Holcim Ltd Key financial figures 2008 2008 2009 LFL CIS FX Total Net sales 25,157 12,434 10,082 -11.2% -0.4% -7.3% -18.9% Operating EBITDA 5,333 2,802 2,143 -14.4% -1.9% -7.2% -23.5% Operating profit 3,360 1,964 1,306 -23.7% -3.0% -6.8% -33.5% Net income 2,226 1,338 787 -33.9% -1.9% -5.4% -41.2% Cash flow from operating activities 3,703 664 805 38.1% -0.8% -16.1% 21.2% 6.27 3.73 1.88 -49.6% 6.99 2 EPS in CHF 1 Million CHF 6M +/-12M 1 Calculated on the weighted average number of shares outstanding retrospectively restated in accordance with IAS 33 2 Net of plant closure costs 9 Half-Year Results 2009© 2009 Holcim Ltd Major changes in the scope of consolidation Effective as at – Egyptian Cement Company January 23, 2008 – Holcim Venezuela December 31, 2008 – Panamá Cement and Cementos Colón December 31, 2008 – United Cement Company of Nigeria April 1, 2009 +/– Various smaller companies [...]... © 2009 Holcim Ltd Half- Year Results 2009 Net income Million CHF Net income Net income - equity holders of Holcim Ltd 2,858 2,423 +162.7% +195.1% 1,338 -41.2% 1,066 -53.2% 787 -56.0% 6M 2007 1 1 6M 2008 Including a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million and a special dividend of CHF 150 million, net © 2009 Holcim Ltd -50.6% 527 6M 2009 21 Half- Year Results 2009. .. 6M 2008 4.3 -25.9% 6M 2009 13 © 2009 Holcim Ltd Half- Year Results 2009 Net sales Million CHF 13,002 12,434 10,082 Like-for-Like (LFL) Change in structure FX movements Total change 1,009 9.3% 962 8.8% 152 1.4% 2,123 19.5% 6M 2007 1,051 -395 -1,224 -568 8.2% -3.0% -9.6% -4.4% 6M 2008 -1,388 -52 -912 -2,352 -11.2% -0.4% -7.3% -18.9% 6M 2009 14 © 2009 Holcim Ltd Half- Year Results 2009 Net sales by region... securities 3 Liquidity III =Liquidity II + unused committed credit lines 2 © 2009 Holcim Ltd 25 Half- Year Results 2009 Financial position Million CHF Net financial debt Total shareholders' equity 76.4% Gearing 83.7% 19,837 15,163 30.06.2008 17,974 15,047 31.12.2008 82.0% 19,580 16,048 30.06 .2009 26 © 2009 Holcim Ltd Half- Year Results 2009 Cement – Price/volume variances per region Domestic cement prices... 2009 Holcim Ltd Half- Year Results 2009 Operating profit Margin Million CHF 18.6% 15.8% 1 13.6% 13.0% 2,423 1,964 1,306 Like-for-Like (LFL) Change in structure FX movements Total change 307 15.8% 164 8.4% 11 0.6% 482 24.8% 6M 2007 1 Margin on a like-for-like basis © 2009 Holcim Ltd -58 -205 -196 -459 -2.4% -8.5% -8.0% -18.9% 6M 2008 -466 -23.7% -59 -3.0% -133 -6.8% -658 -33.5% 6M 2009 19 Half- Year Results. .. currencies © 2009 Holcim Ltd 1 Calculation in USD 28 Half- Year Results 2009 Cement – Price/volume variances per region Domestic cement prices Domestic cement volumes +/- 6M 08/6M 09 * +/- 6M 08/6M 09 Africa Middle East Morocco Lebanon Indian Ocean * If not otherwise indicated calculation based on local currencies © 2009 Holcim Ltd 8.1% 6.4% -2.9% -0.6% 4.6% -17.3% 29 Half- Year Results 2009 Cement –... local currencies © 2009 Holcim Ltd 30 Half- Year Results 2009 Contact information and event calendar Contact information Event calendar Corporate Communications Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications @holcim. com November 11, 2009 Press and analyst conference for the third quarter 2009 March 3, 2010 Press and analyst conference for the annual results 2009 May 5, 2010 Results for the first... 2010 General meeting of shareholders August 19, 2010 Half- year results for 2010 November 10, 2010 Press and analyst conference for the third quarter 2010 Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors Mailing list: www .holcim. com/subscribe 31 © 2009 Holcim Ltd Half- Year Results 2009 ... © 2009 Holcim Ltd Half- Year Results 2009 Financing Million CHF 12M 6M 2008 2008 2009 -2,877 -2,979 -1,012 Share capital paid-in – – – Capital paid-in by minority interests 2 1 – -349 -5 -17 4,119 3,093 702 895 110 +/- Financing requirement Movements of treasury shares net Increase in financial liabilities Increase (or decrease) in cash and cash equivalents -66.0% -327 -397.3% 24 © 2009 Holcim Ltd Half- Year. .. sales 6M 2009 North America 13.9% Latin America 16.1% Europe 34.5% Asia Pacific 29.6% Africa Middle East 5.9% 16 © 2009 Holcim Ltd Half- Year Results 2009 Operating EBITDA Million CHF Margin 25.6% 22.5% 1 21.7% 21.3% 3,324 2,802 2,143 Like-for-Like (LFL) Change in structure FX movements Total change 340 12.5% 244 9.0% 23 0.8% 607 22.3% 6M 2007 1 Margin on a like-for-like basis © 2009 Holcim Ltd -29 -210... change 801 98.2% 99 12.1% 17 2.1% 917 112.4% 6M 2007 -908 -115 -46 -1,069 -52.4% -6.6% -2.7% -61.7% 6M 2008 253 38.1% -5 -0.8% -107 -16.1% 141 21.2% 6M 2009 22 © 2009 Holcim Ltd Half- Year Results 2009 Cash flow statement Million CHF 12M 6M +/- 2008 2008 2009 3,703 664 805 21.2% -1,104 -429 -111 -74.1% 2,599 235 694 195.3% Expansion investments -3,287 -1,283 -1,026 -20.0% Financial investments net -1,084 . © 2009 Holcim Ltd Half- Year Results 2009 © Herzog & de Meuron 1 Half- Year Results 2009 2009 Holcim Ltd Highlights Half- Year 2009 Due to its strong presence in growth markets, Holcim. next year 2 Half- Year Results 2009 2009 Holcim Ltd Europe: Sales of building materials still falling In some markets, the recession has intensified even more since the beginning of this year . 87.3 6M 2008 79.7 6M 2009 62.5 Million t 13 Half- Year Results 2009 2009 Holcim Ltd Ready-mix concrete and asphalt – Sales volumes 5.8 4.3 21.2 23.6 19.3 6.1 6M 2007 6M 2008 6M 2009 -25.9% +11.3% Ready-mix