© 2010 Holcim Ltd/Switzerland Third quarter results 2010 and outlook Hermosillo plant, Mexico 1 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Holcim at a glance y Demand for construction materials suffered a setback in the third quarter in several mature markets; in the emerging markets demand increased y Seasonal influences temporarily impacted construction industry y Overall stable volume development y Increasing price pressure in cement y Trend toward higher variable production and distribution costs y Factors that could be influenced by Holcim led to a further substantial fixed cost reduction y Strategic capacity expansion program continued y Operating EBITDA similar to the previous year 2 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Subdued demand for building materials in Europe y Contrasting economic development in Western and Eastern Europe y Slight decline in sales volumes in all segments y Recently, price pressure in several markets slightly diminished y Cost-cutting measures in all areas and the sale of CO 2 emission certificates supported operating results y Lower operating result 3 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Differing market development in North America y Subdued demand in the US, but better market conditions in Canada y Nearly stable cement sales at Holcim US; however, Aggregate Industries US sold less construction materials y Holcim Canada shipped more cement and ready-mix concrete; deliveries of aggregates reached previous year’s level y Higher prices in Canada; more stable market prices in the US in the third quarter y Substantial cost-cutting at Aggregate Industries US and Holcim US – supported by the high efficiency of the new Ste. Genevieve plant y Better results due to Holcim US and Holcim Canada 4 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Stable delivery volumes in Latin America y Solid construction activity in South America y Higher sales of aggregates and ready-mix concrete; cement sales scarcely reached previous year’s level y Overall stable price development y Substantially better operating results in Brazil and Argentina y Strong volume reduction in Mexico and Central America led to lower operating results 5 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Mostly solid markets in Africa Middle East y In Lebanon, residential construction and infrastructure projects led to higher sales of cement and ready-mix concrete y Stable sales volumes on a high level in Morocco and the Gulf region y Cement sales remained at previous year‘s level in West Africa and in the Indian Ocean y Mostly stable price situation and markedly lower costs at Holcim Lebanon y Better operating results 6 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Growing building materials demand in Asia Pacific y Dynamic demand for building materials in many markets y Higher sales volumes in all segments – positively impacted by the expanded market presence in Australia y Temporary price pressure in India due to the monsoon in the third quarter y Increasing variable costs, especially for energy and transportation y Higher operating results due to Ambuja Cements in India, the Group companies in Indonesia and the Philippines as well as the full consolidation in Australia 7 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Key financial figures 2009 2009 2010 LFL CIS FX Total Sales volumes - Cement (mt) 131.9 99.1 102.8 2.2% 1.5% 3.7% - Aggregates (mt) 143.4 103.2 118.8 -1.0% 16.1% 15.1% - Ready-mix (mm 3 ) 41.8 30.4 34.4 0.0% 13.2% 13.2% Net sales 21,132 15,774 16,568 -2.3% 7.0% 0.3% 5.0% Operating EBITDA 4,630 3,614 3,577 -6.7% 5.1% 0.6% -1.0% Operating profit 2,781 2,337 2,178 -12.5% 4.4% 1.3% -6.8% Net income before minorities 1,958 1,577 1,223 -24.2% 2.6% -0.8% -22.4% Net income Holcim shareholders 1,471 1,200 875 -29.3% 3.4% -1.2% -27.1% Cash flow 3,888 2,192 2,053 -12.7% 6.2% 0.2% -6.3% EPS in CHF 1 4.93 4.10 2.73 -33.4% Million CHF (if not otherwise stated) 9M +/-12M 1 Calculated on the weighted average number of shares outstanding 8 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Major changes in the scope of consolidation Effective as at – United Cement Company of Nigeria April 1, 2009 + Holcim Australia and Cement Australia October 1, 2009 +/– Various smaller companies 9 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Cement – sales volumes by region Δ 9M 09/9M 10 LFL Change in structure Total Europe -4.8% 1.0% -3.8% North America 1.2% 0.0% 1.2% Latin America -1.8% 0.0% -1.8% Africa Middle East 7.6% -4.6% 3.0% Asia Pacific 3.2% 3.4% 6.6% Total 2.2% 1.5% 3.7% 8.48.3 11.2 20.1 20.9 26.2 53.2 49.9 49.1 6.8 6.6 7.0 16.8 20.6 17.1 Total Group 9M 2008 108.8 9M 2009 99.1 9M 2010 102.8 Million t [...]... committed credit lines 2 © 2010 Holcim Ltd/Switzerland 23 Third quarter 2010 Financial position Million CHF Net financial debt Total shareholders' equity Gearing 59.7% 62.8% 22,044 21,599 12,905 30.09.2009 58.3% 13,833 31.12.2009 21,805 12,723 30.09 .2010 24 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Outlook for 2010 Prospects for the European construction markets remain subdued for 2010 In North America,... 16.6% 1.4% -8.0% 4.7% 1.3% -29.5% 31.9% -9.5% 3.4% 0.9% -6.8% 19 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Net income Million CHF Net income Net income - shareholders of Holcim Ltd 2,107 1,739 1,577 1,200 -45.4% 1,223 -25.2% -47.3% -31.0% -22.4% 875 -27.1% 9M 2008 9M 2009 9M 2010 20 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Cash flow from operating activities Margin Million CHF 13.9% 12.4%... -2.3% 7.0% FX Total -5.2% 0.5% 2.5% -7.5% 7.2% 0.3% -9.3% -6.7% 2.4% -7.4% 32.7% 5.0% 14 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Net sales by region Net sales 9M 2010 North America 14.4% Latin America 15.2% Europe 30.1% Asia Pacific 35.3% Africa Middle East 5.0% 15 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Operating EBITDA Margin Million CHF 22.6% 22.9% 1 21.9% 21.6% 4,365 3,614 Like-for-Like... calculation based on local currencies © 2010 Holcim Ltd/Switzerland 33 Third quarter 2010 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 March 2, 2011 Press and analyst conference on annual results for 2010 May 4, 2011 Results for the first quarter 2011 May 5, 2011 General meeting... General meeting of shareholders August 18, 2011 Half-year results for 2011 November 9, 2011 Press and analyst conference for the third quarter 2011 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 34 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Disclaimer Cautionary statement regarding forward-looking... (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 35 © 2010 Holcim Ltd/Switzerland Third quarter 2010 ... -102 536 625.5% Cash flow from operating activities Net investments to maintain productive capacity and to secure competitiveness Free cash flow 1 Retrospectively adjusted based on IAS 7 © 2010 Holcim Ltd/Switzerland 22 Third quarter 2010 Financial debt, maturities and liquidity as of September 30, 2010 Maturity profile (CHF million) 1 Liquidity summary 4,000 Loans Capital Markets 3,000 Current financial... 5.6% 0.6% -17.4% 11.6% -6.8% 2.5% 10.2% -1.0% 17 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Operating profit Margin Million CHF 16.0% 14.8% 1 13.3% 13.1% 3,087 2,337 Like-for-Like (LFL) Change in structure FX movements Total change -313 -250 -311 -874 -7.9% -6.3% -7.9% -22.1% 9M 2008 1 Margin on a like-for-like basis © 2010 Holcim Ltd/Switzerland -421 -13.6% -92 -3.0% -237 -7.7% -750 -24.3% 9M... local currencies © 2010 Holcim Ltd/Switzerland 1 Weighted average like-for-like 2 Calculation in USD 29 Third quarter 2010 Cement – price/volume variances per region Domestic cement prices Domestic cement volumes +/- 9M 09/9M 10* +/- 9M 09/9M 10 Africa Middle East1 Morocco Lebanon Indian Ocean * If not otherwise indicated calculation based on local currencies © 2010 Holcim Ltd/Switzerland -1.4% -0.3%... 572 283 -14.0% -13.1% -15.7% 1.2% 1.5% 0.6% -4.6% -4.0% -5.6% -17.4% -15.6% -20.7% 26 © 2010 Holcim Ltd/Switzerland Third quarter 2010 Asia Pacific – mature and emerging market highlights Million CHF (if not otherwise stated) Cement volumes (mt) - of which mature markets - of which emerging markets 9 months 2009 2010 49.9 53.2 2.1 3.6 47.8 49.6 Aggregates volumes (mt) - of which mature markets - of . © 2010 Holcim Ltd/Switzerland Third quarter results 2010 and outlook Hermosillo plant, Mexico 1 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Holcim at a glance y Demand for construction. Industries US and Holcim US – supported by the high efficiency of the new Ste. Genevieve plant y Better results due to Holcim US and Holcim Canada 4 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Stable. situation and markedly lower costs at Holcim Lebanon y Better operating results 6 Third quarter 2010 © 2010 Holcim Ltd/Switzerland Growing building materials demand in Asia Pacific y Dynamic demand