2007 results and outlook holcim

©2008 Holcim Ltd/Switzerland 2007 results and outlook 1 2007 results©2008 Holcim Ltd/Switzerland 2007: Another record year for Holcim  Excellent operating results  Solid construction activity in most markets  Excellent geographical positioning  Strategy is strengthening Group growth  Proposal for substantial dividend increase 2 2007 results©2008 Holcim Ltd/Switzerland Europe: Rise in earnings from eastern Europe  Construction activity and capacity utilization good  Eastern Europe, Russia and Azerbaijan on the up  Foster Yeoman bolsters aggregates sales in UK  High level of efficiency, stable sales, attractive prices  Europe making biggest contribution to Group result 3 2007 results©2008 Holcim Ltd/Switzerland North America: Cement production at record level  Weak US housing construction straining building industry  Higher cement output and fewer imports  Meyer Material bolsters Aggregate Industries US  Stable earnings despite weak US dollar  Optimized market organization from 2008 4 2007 results©2008 Holcim Ltd/Switzerland Latin America: Solid organic growth  Economy positive and building activity increasing  Cement and ready-mix concrete sales up  Higher volumes and somewhat better prices in Brazil  Sharp increase in raw material and energy prices  Alternative fuels ease energy outlays 5 2007 results©2008 Holcim Ltd/Switzerland Africa Middle East: High capacity utilization  Construction sector bolsters economic development  Higher sales volumes in all segments and markets  South Africa deconsolidated  Better operating results across the board  Equity accounting for Egyptian Cement 6 2007 results©2008 Holcim Ltd/Switzerland Asia Pacific: Results significantly higher  Economy on strong growth path  Housing and infrastructure deficit boosts building volumes  Sharp rise in sales across all segments  ACC and Ambuja Cements consolidated for full year  Stake in Huaxin Cement raised to 40 percent 7 2007 results©2008 Holcim Ltd/Switzerland Sustainable development: Broad recognition  Innovative and sustainable construction solutions  Concrete: an efficient building material much in demand  Composite cements gaining in significance  Growing use of alternative fuels  “Leader of the Industry” in the DJSI 8 2007 results©2008 Holcim Ltd/Switzerland Cement capacity in million tonnes * 2008 2009 2010 2011 Total Europe 1.8 1.2 2.5 1.7 7.2 North America 4.0 4.0 Latin America 0.2 1.6 1.8 Africa Middle East 1.2 1.2 Asia Pacific 0.9 11.7 2.1 14.7 Total Group 3.9 17.1 6.2 1.7 28.9 * Approved Group company projects; some under construction  7 million tonnes cement capacity already commissioned in 2007  By 2011 there will follow a further 29 million tonnes for around CHF 6.5 billion  Additional contribution of CHF 1.1 billion to EBITDA from 2012; CHF 550 million already from 2010 Capacity expansion: Growing with the market 9 2007 results©2008 Holcim Ltd/Switzerland Key financial figures 1 Adjusted in line with revised IFRS 2 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 3 Calculated on the weighted average number of shares outstanding 4 Excluding the non-recurring capital gain on the sale of a stake in Holcim South Africa 5 Proposal of the Board of Directors LFL CIS FX in CHF Net sales 18,468 23,969 27,052 8.1% 3.2% 1.6% 12.9% Operating EBITDA 4,627 6,086 6,930 10.8% 1.8% 1.3% 13.9% Operating profit 3,316 4,385 5,024 13.0% 0.5% 1.1% 14.6% Net income 1,789 2,719 4,545 2 62.8% 3.2% 1.2% 67.2% Cash flow from operating activities 3,405 4,423 5,323 16.0% 3.1% 1.2% 20.3% 6.61 8.64 14.86 72.0% 10.02 4 Dividend per share in CHF 1.65 2.00 3.30 5 65.0% Dividend payment 382 522 868 5 66.3% EPS in CHF 3 Million CHF +/- 2005 1 2006 2007 [...]... -50.0% 0.0% 2.9% 4.0 Total 14.0% -12.6% -1.6% -49.1% 25.0% 0.2% 15 ©2008 Holcim Ltd/Switzerland 2007 results Ready-mix concrete and asphalt – Sales volumes Ready-mix concrete in million m3 Asphalt in million t 45.2 44.2 38.2 +2.3% +15.7% +30.4% 15.3 14.8 +15.0% -3.3% 13.3 n.a 2005 2006 2007 16 ©2008 Holcim Ltd/Switzerland 2007 results Net sales Million CHF 27,052 23,969 18,468 Like-for-Like (LFL) Change... ©2008 Holcim Ltd/Switzerland 2007 results Net sales by region Net sales 2007 North America 19.2% Latin America 14.4% Europe 37.3% Asia Pacific 22.5% Africa Middle East 6.6% 19 ©2008 Holcim Ltd/Switzerland 2007 results Operating EBITDA Margin Million CHF 25.1% 25.4% 1 26.0% 25.6% 6,930 6,086 4,627 Like-for-Like (LFL) Change in structure Forex movements Total change Margin on a like-for-like basis ©2008 Holcim. .. ©2008 Holcim Ltd/Switzerland 2007 results Net income Million CHF Net income Net income - equity holders of Holcim Ltd 4,545 3,865 +67.2% 2,719 1,789 2,104 +83.7% 1,511 +52.0% +55.7% +66.0% 2005 1 2 1 +39.2% 2006 2007 2 Adjusted in line with revised IFRS 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 ©2008 Holcim. .. Ltd/Switzerland 25 2007 results Cash flow from operating activities Million CHF 18.4% Margin 18.5% 19.7% 5,323 4,423 3,405 Like-for-Like (LFL) Change in structure Forex movements Total change 244 501 38 783 9.3% 19.2% 1.4% 29.9% 2005 695 20.4% 293 8.6% 30 0.9% 1,018 29.9% 2006 710 137 53 900 16.0% 3.1% 1.2% 20.3% 2007 26 ©2008 Holcim Ltd/Switzerland 2007 results Cash flow statement Million CHF 2005 2006 2007. .. 8.5 >3 Standard & Poor's Rating BBB+ BBB+ BBB+ Fitch Rating BBB+ BBB+ BBB+ Operating EBITDA margin (%) for: 1 Adjusted in line with revised IFRS ©2008 Holcim Ltd/Switzerland 30 2007 results Outlook for 2008: Further growth Holcim enjoys excellent geographical diversification and in 2008 is expected to again reach its long-term growth target of five percent in internal operating EBITDA 31 ©2008 Holcim. .. ©2008 Holcim Ltd/Switzerland 1 Calculation in USD 33 2007 results Cement – Price/volume variances per region Domestic cement prices Domestic cement volumes +/- 2006 /2007 * +/- 2006 /2007 Africa Middle East Morocco Egypt Lebanon Indian Ocean * If not otherwise indicated calculation based on local currencies 1 Calculation in USD ©2008 Holcim Ltd/Switzerland 5.8% 6.8% 5.5% 1 8.3% 12.6% 21.9% 11.9% 7.0% 34 2007. .. Holcim Ltd/Switzerland 2007 results Cement – Price/volume variances per region Domestic cement prices Domestic cement volumes +/- 2006 /2007 * +/- 2006 /2007 Europe Belgium France Germany Switzerland Italy Hungary Czech Republic Slovakia Croatia Romania Bulgaria Serbia Russia Azerbaijan Spain * If not otherwise indicated calculation based on local currencies ©2008 Holcim Ltd/Switzerland 7.1% 5.4% 9.1%... Cement and Mineral Components: 33 percent 200 0% 0 2003 2004 2005 2006 2007 22 ©2008 Holcim Ltd/Switzerland 2007 results Operating profit Margin Million CHF 18.0% 18.3% 18.6% 5,024 4,385 3,316 Like-for-Like (LFL) Change in structure Forex movements Total change 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 569 13.0% 23 0.5% 47 1.1% 639 14.6% 2007 23 ©2008 Holcim. .. 3,735 28.2% 189 1.5% 5,253 39.8% 1,647 9.0% 3,608 19.5% 246 1.3% 5,501 29.8% 2005 2006 1,933 8.1% 759 3.2% 391 1.6% 3,083 12.9% 2007 17 ©2008 Holcim Ltd/Switzerland 2007 results Net sales by region Million CHF 2005 2006 2007 10401 8673 7037 4704 5520 5365 6292 4745 1873 2086 Δ 2006 /2007 3158 3675 4010 Europe North America Latin America Africa Middle East Asia Pacific Total 1831 2288 LFL Change in Currency... 35.0% 13.9% 21 ©2008 Holcim Ltd/Switzerland 2007 results Operating EBITDA margin target by segment Aggregates: 27 percent 8'000 1'400 1'200 30% 30% 6'000 4'000 2'000 21.2% 20.9% 20.6% % of net sales 32.6% in million CHF 32.6% 31.4% 20.7% 20.3% 1'000 800 20% 600 400 10% 200 0% 0 2003 2004 2005 2006 2007 0 2003 Other Construction Materials and Services: 8 percent 10% 2004 6.0% 7.0% 2007 1'400 1'200 1'000 . ©2008 Holcim Ltd/Switzerland 2007 results and outlook 1 2007 results 2008 Holcim Ltd/Switzerland 2007: Another record year for Holcim  Excellent operating results  Solid construction. 2008 4 2007 results 2008 Holcim Ltd/Switzerland Latin America: Solid organic growth  Economy positive and building activity increasing  Cement and ready-mix concrete sales up  Higher volumes and. segments and markets  South Africa deconsolidated  Better operating results across the board  Equity accounting for Egyptian Cement 6 2007 results 2008 Holcim Ltd/Switzerland Asia Pacific: Results