2005 annual results and outlook for 2006 holcim ltd

2005 annual results and outlook for 2006 1 2005 annual results Dynamic development of the Group  Dynamic growth marks Group results  Internal operating EBITDA growth of 10.5 percent  Acquisitions totaling CHF 5.2 billion  Foundations laid for creation of value in the future  Solid Group net income permits dividend increase 2 2005 annual results Pleasing development of existing portfolio  Group profited fully from its strengths in a favorable economic environment  Predominantly friendly price environment and good capacity utilization  Impressive performance in all Group regions  Stringent cost management and price increases absorb higher energy costs  Foreign currency effects negligible 3 2005 annual results Group strengthened by significant acquisitions  Holcim makes the largest acquisitions in the company’s history  Thanks to a strong balance sheet, the acquisitions could be financed almost exclusively from borrowed capital  With India and El Salvador the focus of investment in cement is in growth markets  Takeover of Aggregate Industries marks a major step towards implementing a dual product strategy  All companies making a positive contribution to the Group result since day one  Integration of the new companies is going according to plan and synergy potentials are to be exploited step-by-step 4 2005 annual results Europe  Construction industry largely solid  Housebuilding and infrastructure projects trigger strong demand  Strong increase in consumption widespread, especially in Switzerland 5 2005 annual results Operations in Europe Cement plant Grinding plant/ terminal Aggregates Participation: Cement plant 6 2005 annual results Facts on Europe  Marked increase in deliveries of aggregates and ready-mix concrete; cement sales gratifying  Thanks to its excellent market positions, Aggregate Industries UK lifts sales of aggregates, concrete and asphalt  All Group companies see improvement in operating result, in particular in Spain, France, Central and Southeastern Europe  Price recovery and more differentiated product range lead to better operating margins in Germany  In Europe, operating EBITDA is up by 34 percent to CHF 1.6 billion  Internal operating EBITDA grows by 11 percent  Integration of Aggregate Industries well advanced; potential for synergies and savings clearly identified 7 2005 annual results North America  Robust market development in North America  US cement capacity fully utilized and cement imports at record level  Construction activity solid in Canada, but second half weaker 8 2005 annual results Operations in North America Cement plant ( 1 under construction) Grinding plant/terminal Aggregates 1 9 2005 annual results Facts on North America  Major expansion in aggregates, ready-mix concrete and asphalt operations thanks to Aggregate Industries US  Further increase in cement sales and very good capacity utilization  Earnings at St. Lawrence Cement nearly offset weaker demand on US East Coast  Holcim US is profiting from increased plant efficiency and improved prices  In North America, operating EBITDA rises by 68 percent to CHF 928 million  Internal operating EBITDA grows by 21 percent despite higher energy and raw material expense  US Group companies benefit from various synergies, despite separate operational management [...]... Housebuilding, infrastructure projects and tourism stimulate demand for building materials 10 2005 annual results Operations in Latin America Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal 11 2005 annual results Facts on Latin America Higher sales volumes of cement and ready-mix concrete Strong improvements in sales and results at almost all Group companies... Generally positive economic climate Private and public investments boost demand for construction materials Very robust development in South Africa and Morocco 13 2005 annual results Operations in Africa Middle East 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Grinding plant/terminal 1 Under construction 14 2005 annual results Facts on Africa Middle East All Group companies profiting from... consumption 16 2005 annual results Operations in Asia Pacific Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal 17 2005 annual results Facts on Asia Pacific All big Group companies post increase in cement sales Significantly higher volumes of ready-mix concrete delivered Substantial contributions to results from the Philippines, Thailand, Vietnam and Indonesia... 28.3% 1.4% Total 48.3% 78.9% 13.4% 21.6% 17.6% 39.8% 27 2005 annual results Net sales by region Net sales 2005 North America 24.7% Europe 36.9% Asia Pacific 12.0% Latin America 16.6% Africa Middle East 9.8% 28 2005 annual results Operating EBITDA Million CHF Margin 26.3% 27.2% 27.3%* 25.1% 4,627 3,588 3,311 Like -for- Like (LFL) Change in structure Forex movements Total change 177 5.3% 50 1.5% -257 -7.7%... EBITDA margin on a like -for- like basis 376 11.4% 28 0.8% -127 -3.8% 277 8.4% 2004 377 10.5% 607 16.9% 55 1.6% 1,039 29.0% 2005 29 2005 annual results Energy cost development Yearly Ø Brent Oil Price (USD) % of net sales 12% 10.4% Total energy cost 10% 50 9.2% 40 8% Electricity expenses 30 5.7% 6% 20 4.6% 4% 4.7% 4.6% 10 Fuel expenses 0 2% 2001 2002 2003 2004 2005 30 2005 annual results Operating EBITDA... 2005 annual results Sales volumes cement by region Million t 30.8 31.8 Total Group 2003 94.3 2004 102.1 2005 110.6 26.5 17.2 17.5 18.2 23.3 12.8 19.3 20.6 23.7 14.0 25.8 28.9 14.8 2004 /2005 Europe North America Latin America Africa Middle East Asia Pacific Total LFL 3.0% 4.0% 9.0% 5.7% 6.9% 5.8% Change in structure 0.2% 0.0% 6.0% 0.0% 5.1% 2.5% Total 3.2% 4.0% 15.0% 5.7% 12.0% 8.3% 24 2005 annual results. .. attractive results in Australia too Operating EBITDA up 23 percent to CHF 570 million Internal operating EBITDA increases 16 percent Ambuja Cement Eastern consolidated since April 2005 and The Associated Cement Companies since February 2006 In India acquisitions of 34 million tonnes of cement capacity within 12 months, including Gujarat Ambuja Cements Platform to expand network in the Indian Ocean 18 2005 annual. .. 1 restated in line with new and revised IFRS, effective January 1, 2005 excludes the amortization of goodwill and other intangible assets 3 proposal of the board of directors 2 19 2005 annual results Major changes in the scope of consolidation Effective as at + Cemento de El Salvador December 31, 2004 + Aggregate Industries March 21, 2005 + Ambuja Cement Eastern April 11, 2005 Cement capacity 1.7 million... 15.3% 3,316 2,251 Like -for- Like (LFL) Goodwill amortization Change in structure Forex movements Total change 1,925 151 7.9% 388 20.2% 33 1.7% -162 -8.5% 22 1.2% 20 1.0% -82 -4.3% 326 16.9% 2003 * operating profit margin on a like -for- like basis 2004 401 260 362 42 1,065 17.8% 11.6% 16.1% 1.8% 47.3% 2005 33 2005 annual results Operating profit by region Million CHF 2003 * 2004 * 2005 1125 639 726 358... 47.3% 34 2005 annual results Group net income Million CHF 1,818 Net income + 62.3% Net income - equity holders of Holcim Ltd 1,540 + 74.8% 1,120 928 + 12.3% + 20.7% 682 881 + 29.2% 27.5 % 2003 * 2004 * * restated in line with new and revised IFRS, effective January 1, 2005 2005 35 2005 annual results . 2005 annual results and outlook for 2006 1 2005 annual results Dynamic development of the Group  Dynamic growth marks Group results  Internal operating EBITDA. widespread, especially in Switzerland 5 2005 annual results Operations in Europe Cement plant Grinding plant/ terminal Aggregates Participation: Cement plant 6 2005 annual results Facts on Europe  Marked. plan and synergy potentials are to be exploited step-by-step 4 2005 annual results Europe  Construction industry largely solid  Housebuilding and infrastructure projects trigger strong demand 