Strength Performance Passion Roadshow Mexico City on – May 2014 Thomas Aebischer – Holcim Group CFO and Member of the Executive Committee Urs Birri – CFO Holcim México Thomas Rüeger – Treasury Relationship Manager Angel García de Quevedo – Treasurer Holcim México IFZ - MAS Corporate Finance 20_10 – Funding December 7, 2012, 14.10 – 17.50 Roadshow Mexico City, May 2014 © 2014 Holcim Ltd Agenda Strategy and positioning based on long-term growth Holcim Leadership Journey Footprint in Latin America Results and outlook Financial position and financing Certificados Bursátiles / Transaction Summary Merger of equals between Lafarge and Holcim Roadshow Mexico City, May 2014 © 2014 Holcim Ltd Holcim at a glance > 70’000 employees 130 cement plants around 200 limestone quarries / 450 aggregates operations 1’150 RMX plants in the world over 5’000 own RMX trucks / more than 3’000 subcontracted over 1’600’000’000 cement bags sold Presence on all five continents and in around 70 countries 2013 Net sales of CHF 19.7 bn and operating EBITDA of CHF 3.9 bn Roadshow Mexico City, May 2014 © 2014 Holcim Ltd Holcim’s Strategy House – base for value creation Goal Creation of Value Geographic Diversification Strategy Product Focus Mindsets Sustainable Better Permanent Environmental Cost Marketing Performance Management Innovation Local Management Global Standards Human Resources Excellence Corporate Social Responsibility People Base Roadshow Mexico City, May 2014 © 2014 Holcim Ltd Product focus – two core segments and their channels Product segments 2013 Cement Clinker 206.9 million tonnes production capacity 142 cement and grinding plants Sales: 138.9 million tonnes Net sales per segment 2013 Net sales CHF 19.7 billion 30.7% 58.3% 10.9% Aggregates 426 aggregates plants Sales: 154.5 million tonnes Other construction materials & services Roadshow Mexico City, May 2014 1,100 RMX plants 91 asphalt plants Sales of ready-mix concrete: 39.5 million m3 Sales of asphalt: 8.9 million tonnes Op EBITDA per segment 2013 Op EBITDA CHF 3.9 billion 5.0% 83.5% 11.5% Cement Aggregates Other Construction Materials and Services © 2014 Holcim Ltd Holcim – well balanced global portfolio Sales volumes per region 2013 Asia Pacific Latin America Net sales per region 2013 (million t or m3) • Cement 70.3 • Aggregates 25.2 • Ready-mix concrete 10.9 • Cement • Aggregates • Ready-mix concrete 25.0 10.2 8.0 Europe Net sales CHF 19.7 billion 27.6% 15.6% 16.5% 35.9% 4.4% Op EBITDA per region 2013 • Cement • Aggregates • Ready-mix concrete 26.7 74.1 12.3 Op EBITDA CHF 3.9 billion 22.9% 12.0% North America • Cement • Aggregates • Ready-mix concrete 11.7 42.8 7.5 35.6% 22.7% Africa Middle East • Cement • Aggregates • Ready-mix concrete Roadshow Mexico City, May 2014 7.9 2.2 0.8 Asia Pacific North America Latin America 6.9% Africa Middle East Europe © 2014 Holcim Ltd Positioning – Holcim’s cement market portfolio Cumulated population Growth 2013 - 2018E 12% Mature markets Emerging markets Size of circles represents influenced capacity 2013 10% 8% Oceania 2.6 Mt 6% Latin America 35.5 Mt North America 22.0 Mt 4% Asia Pacific excl India, Oceania, China 43.7 Mt Western Europe 24.8 Mt 2% Africa Middle East 23.5 Mt 0% Demand growth India 60.5 Mt China 67.6 Mt Eastern Europe 22.9 Mt -2% -4% 0% 1% 2% 3% 4% 5% 6% 7% 8% Real GDP growth 2013 - 2018E Sources: Holcim, Business Monitor International, IMF: World Economic Outlook, January 2014 Roadshow Mexico City, May 2014 © 2014 Holcim Ltd Positioning – Holcim’s aggregates market portfolio Cumulated population Growth 2013 - 2018E 12% Mature markets Emerging markets Demand growth Size of circles represents consolidated sales volumes 2013 10% 8% Asia excl Oceania 2.4 Mt Oceania 22.8 Mt 6% Africa Middle East 2.2 Mt North America 42.8 Mt 4% Latin America 10.2 Mt Western Europe 65.3 Mt 2% 0% Eastern Europe 8.8 Mt -2% -4% 0% 1% 2% 3% 4% 5% 6% 7% 8% Real GDP growth 2013 - 2018E Sources: Holcim, Business Monitor International, IMF: World Economic Outlook, January 2014 Roadshow Mexico City, May 2014 © 2014 Holcim Ltd Agenda Strategy and positioning based on long-term growth Holcim Leadership Journey Footprint in Latin America Results and outlook Financial position and financing Certificados Bursátiles / Transaction Summary Merger of equals between Lafarge and Holcim Roadshow Mexico City, May 2014 © 2014 Holcim Ltd The five areas of operating profit growth by 2014 Customer Excellence CHF 500 million Fixed cost > CHF 200 million Energy and AFR Operating Profit > CHF 1,500 million > CHF 300 million Procurement Logistics > CHF 250 million > CHF 250 million Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 10 Average maturity substantially increased to 5.2 years with long-dated bonds in USD, EUR and CHF Major capital market transactions since January 1, 2013 USD 500 m bond (10 years) USD 250 m bond (30 years) USD 50 m bond (20 years) EUR 500 m bond (10 years) CHF 250 m bond (8.5 years) Average maturity of financial liabilities (in years) 5.5 5.0 4.5 4.0 Target 3.5 3.0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 05 06 07 08 09 10 11 12 13 Roadshow Mexico City, May 2014 Amendment and extension EUR 2.0 bn Syndicated Revolving Committed Credit Facility © 2014 Holcim Ltd 27 Agenda Strategy and positioning based on long-term growth Holcim Leadership Journey Footprint in Latin America Results and outlook Financial position and financing Certificados Bursátiles / Transaction Summary Merger of equals between Lafarge and Holcim Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 28 Certificados Bursátiles / Transaction Summary Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 29 Agenda Strategy and positioning based on long-term growth Holcim Leadership Journey Footprint in Latin America Results and outlook Financial position and financing Certificados Bursátiles / Transaction Summary Merger of equals between Lafarge and Holcim Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 30 KEY TRANSACTION HIGHLIGHTS COMPANY NAME » LafargeHolcim DEAL STRUCTURE » » Merger of equals Company domiciled in Switzerland EXCHANGE RATIO » Exchange ratio of Holcim share for Lafarge share REBALANCED PORTFOLIO » » » » Capitalise on developed markets recovery Divestments of assets representing CHF 6bn / EUR 5bn of sales 60% exposure to emerging markets post divestments No country above c 10% of sales » » » » Best growth platform in the industry and superior operating profitability CHF 1.7bn / EUR 1.4bn of run-rate synergies Strict capital allocation discipline and strong financial structure: targeted solid Investment Grade credit ratings Attractive dividend payout policy BOARD & SHAREHOLDER SUPPORT » » Boards of both companies have unanimously approved the transaction Thomas Schmidheiny, GBL and NNS fully support the transaction TIMETABLE » Transaction closing expected in H1 2015 VALUE PROPOSITION 31 A MERGER OF EQUALS BALANCED GOVERNANCE AND LEADERSHIP BOARD OF DIRECTORS MANAGEMENT INTEGRATION COMMITTEE » » Chairman: Wolfgang Reitzle Equally composed Board with members from Holcim and members from Lafarge » » » CEO: Bruno Lafont CFO: Thomas Aebischer CIO: Jean-Jacques Gauthier » PRO FORMA SHAREHOLDING STRUCTURE Co-Chaired by Holcim and Lafarge OTHER LAFARGE SHAREHOLDERS 30% OTHER HOLCIM SHAREHOLDERS 42% NNS SHARE LISTING CENTRAL CORPORATE FUNCTIONS » » SIX (Zurich) Euronext (Paris) 7% GBL 10% THOMAS SCHMIDHEINY 11% » Balanced allocation across Zurich and Paris COMBINED MARKET CAP CHF 48.8 bn / EUR 39.9 bn 1 Combined market cap based on closing share prices on April 2014 32 A COMBINATION OF TWO SUCCESSFUL GROUPS ILLUSTRATIVE COMBINED DISPOSALS SYNERGIES1 ILLUSTRATIVE PRO FORMA2 COUNTRIES 90 2013 SALES (CHF / EUR bn) CHF 38.6 / EUR 31.6 c CHF (6) / EUR (5) CHF 0.5 / EUR 0.4 c CHF 33 / EUR 27 2013 EBITDA (CHF / EUR bn) CHF 7.8 / EUR 6.4 c CHF (1) / EUR (0.8) CHF 1.2 / EUR 1.0 c CHF / EUR 6.6 90 Notes: Full run-rate Excluding implementation costs 33 GEOGRAPHICAL COMPLEMENTARITY OF PORTFOLIOS Combined sales by region Emerging markets (in billion) 49% Total 73 17 90 # of countries CHF 11.0 / EUR 9.0 51% Developed markets 5.6 CHF 8.6 / EUR 7.0 5.4 CHF 7.0 / EUR 5.7 5.2 Europe 3.2 61% 45% 55% 39% 3.8 3.3 Asia North America CHF 5.9 / EUR 4.8 CHF 2.0 / EUR 1.7 0.9 CHF 4.4 / EUR 3.6 76% 3.3 24% 1.1 15% 85% 100% 5.0 2.0 Pacific Africa & ME Latin America Holcim Combined Cement Capacity (mT) 221 206 427 Aggregates volume sold (mT) 193 155 348 RMC volume sold (mm3) Global presence of Holcim and Lafarge Holcim sales (CHF) Lafarge sales (CHF) Lafarge 31 39 70 Note: pre-disposals, pre-group elimination, post regional elimination 34 STRATEGIC PORTFOLIO OPTIMISATION Selected divestments in Developed markets DEVELOPED MARKETS c CHF bn / EUR bn Revenues c CHF 0.5 bn / EUR 0.4 bn EBITDA 10% to 15% of combined EBITDA Limited divestments in Emerging markets EMERGING MARKETS c CHF bn / EUR 1.5 bn Revenues c CHF 0.4 bn / EUR 0.3 bn EBITDA STRATEGIC PORTFOLIO OPTIMISATION WHILST ANTICIPATING REGULATORY REQUIREMENTS STRONG CAPITAL STRUCTURE AFTER DIVESTMENTS DIVESTMENT COMMITTEE IS BEING FORMED 35 OPERATIONAL SYNERGIES • SOURCE » • ESTIMATED EBITDA RUN-RATE SYNERGIES Operational optimisation / best practices E.g logistics, distribution, IT, energy consumption » CHF 240 m / EUR 200 m Procurement Savings in overlapping countries Economies of scale in centralized procurement for selected categories » Selling, General and Administrative » CHF 410 m / EUR 340 m Innovation deployed on a larger scale Cross-fertilization of value-added product portfolios TOTAL SYNERGIES AT EBITDA LEVEL CHF 300 m / EUR 250 m CHF 240 m / EUR 200 m CHF 1.2 bn / EUR 1.0 bn 36 FINANCING & CASH-FLOW SYNERGIES • • SOURCE » Financing savings » ESTIMATED RUN-RATE SYNERGIES CHF 120 m / EUR 100 m (from end of year 1) Up to CHF 240 m / EUR 200 m (over time) Capital expenditures Best practice on maintenance capex CHF 250 m / EUR 200 m Higher efficiency on expansion capex TOTAL SYNERGIES » Working capital savings Sharing of best practices CHF 1.7 bn / EUR 1.4 bn CHF 500 m / EUR 410 m (over years) 37 KEY STEPS TO CLOSING MAJOR STEPS DESCRIPTION WORKS COUNCIL CONSULTATIONS » Lafarge and Holcim Works Council consultations initiated immediately DIVESTMENTS » Process to start immediately INTEGRATION PREPARATION » Prepare an integration plan for implementation straight after closing of the transaction » Regulatory proceedings initiated in all relevant jurisdictions shortly » After regulatory approvals: Holcim EGM approvals Launch public exchange offer REGULATORY APPROVALS SHAREHOLDER APPROVAL AND ACCEPTANCES TRANSACTION CLOSING EXPECTED IN H1 2015 38 Contact information and event calendar Contact information Event calendar Corporate Finance & Treasury Phone +41 58 858 87 20 treasury-hts@holcim.com www.holcim.com/bondholders July 30, 2014 Half-year results for 2014 November 4, 2014 Press and analyst conference third quarter results for 2014 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 Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 39 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 to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation Holcim assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise Neither this presentation nor its content constitute an offer, invitation or request to buy or subscribe any securities or other instruments, and shall not be considered as base to any agreement, commitment or decision of any kind Clients or investors shall not take any investment decision based on the information contained herein This presentation may contain summarized or non-audited information Following this order of ideas, the information contained herein is subject to, and shall be read along with all the public information of Holcim Ltd and Holcim Capital México, S.A de C.V which is available, including any other documents or reports which may contain further or more ample information or figures, such as the corresponding Prospectus and the Supplements for each issuance All the material or relevant information on Holcim Capital México, S.A de C.V and, in particular, the information connected with risk factors is provided within the Prospectus Every investor shall review the definitive Prospectus corresponding to the securities referred hereto The preliminary Prospectus is available with the bookrunners and on the web page of the Bolsa Mexicana de Valores, S.A.B de C.V (www.bmv.com.mx) Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 40 ... Lafarge and Holcim Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 28 Certificados Bursátiles / Transaction Summary Roadshow Mexico City, May 2014 © 2014 Holcim Ltd 29 Agenda Strategy and positioning... results for 2014 November 4, 2014 Press and analyst conference third quarter results for 2014 Investor Relations Phone +41 58 8 58 87 87 Fax +41 58 8 58 80 09 investor.relations @holcim. com www .holcim. com/investors... 28. 2% -6.0% 2 .7% 24.9% - 58. 6% © 2014 Holcim Ltd 20 Operating EBITDA by region 2011 2012 2013 Million CHF 946 930 3,9 58 3 ,88 9 3 ,89 6 615 346 480 170 0 494 1 473 312 88 8 960 2 78 283 9 38 ∆ 2012 / 2013