Third quarter results and outlook 2005 holcim ltd

Strength. Performance. Passion. Third quarter results and outlook 2005 2 3 rd quarter 2005 Key facts at a glance  Broad-based profit rise due to expansion and internal growth  A worldwide presence and the right portfolio mix in mature and emerging markets add up to pleasing results  Strengthening the aggregates and ready-mix concrete segments and establishing a market presence in India secure new growth potential  Sales increases and cost-savings support robust internal growth  Rising energy costs and price pressure in some markets are more than offset  Holcim "Leader of the Industry" in the Dow Jones Sustainability Index 2006 3 3 rd quarter 2005  Trend largely positive for European construction sector  Good market situation in western and southeastern Europe Europe 4 3 rd quarter 2005 Group: Cement plant Grindingstation Terminal Participation: Cement plant Group cement capacity (Europe): 45.3 million t; further 1.1 million t with partners. Cement and aggregates Cement Positions in Europe 5 3 rd quarter 2005 Facts on Europe  Increased sales in all segments  Cement sales up particularly in Spain, France, Switzerland, Romania, Bulgaria and Russia  In the United Kingdom Aggregate Industries produces good results  Generally improved financial performance  Rising returns in Germany on back of price recovery  Operating EBITDA increases 28 percent to CHF 1,253 million  Internal operating EBITDA growth reaches 8 percent 6 3 rd quarter 2005  Attractive economic conditions in North America  Weaker growth in the Great Lakes region and in the northeast of the US  Stable construction activity in Canada North America 7 3 rd quarter 2005 Group: Cement plant Grinding station Terminal Cement plant (under construction) Group cement capacity (North America): 22.0 million t. Cement and aggregates Positions in North America 8 3 rd quarter 2005 Facts on North America  Further increase in cement deliveries in North America  Holcim US benefits from strong volume increases and better pricing  Decline of sales at St. Lawrence Cement on the US East Coast  Aggregate Industries US complements our product range; financial performance in line with expectations  Operating EBITDA 62 percent higher at CHF 674 million  Internal operating EBITDA growth reaches 16 percent 9 3 rd quarter 2005  Construction sector supported by private investments and public- sector housing and infrastructure programs  Less dynamic construction activity in Central America Latin America 10 3 rd quarter 2005 Positions in Latin America Group: Cement plant Grinding station Terminal Participation: Cement plant Grinding station Terminal Group cement capacity (Latin America): 34.5 million t; additionally with partners 7.8 million t. Group: Cement plant Grinding station Terminal Participation: Cement plant Grinding station Terminal Group cement capacity (Latin America): 34.5 million t; further 7.8 million t with partners. Cement and aggregates Cement [...]... Holcim Morocco builds modern cement plant to better serve Casablanca and Rabat markets 14 3rd quarter 2005 Asia Pacific Housing and infrastructure construction strengthen growth Higher demand for cement in India, Vietnam, Indonesia, Thailand and the Pacific region 15 3rd quarter 2005 Positions in Asia Pacific Cement and aggregates Cement Group: Cement plant Grinding station Terminal Participation: Cement... partners 16 3rd quarter 2005 Facts on Asia Pacific Strong increase in cement sales Ambuja Cement Eastern part of the Group since April Siam City Cement in Thailand and PT Semen Cibinong in Indonesia post the largest growth in volumes Holcim Vietnam benefits from extended grinding capacity Virtually all companies in this Group region report better results – main contributors are Holcim Philippines and Siam... amortization of goodwill and other intangible assets * restated 3.7% 9.0% 18 3rd quarter 2005 Major changes in the scope of consolidation Effective as at + Cemento de El Salvador S.A de C.V December 31, 2004 + Aggregate Industries plc March 31, 2005 + Ambuja Cement Eastern Ltd April 11, 2005 Cement capacity 1.7 million t – 2.0 million t +/– Various smaller companies 19 3rd quarter 2005 Exchange rates Statement... to counter rise in energy costs 11 3rd quarter 2005 Africa Middle East Housing, tourism and infrastructure improvements stimulate the construction sector High demand for building materials in South Africa’s mining industry 12 3rd quarter 2005 Positions in Africa Middle East Group: Cement plant Grinding station Terminal Cement plant (under construction) Cement and aggregates Cement Participation: Cement... 13.6% 3.4% -1.1% 17.3% 10.7% 17.6% -1.4% Total 47.4% 76.8% 9.1% 43.7% 39.4% 44.2% 29 3rd quarter 2005 Group net income Million CHF 1,384 Net income +58.2% Net income attributable to equity holders of Holcim Ltd 1,175 +70.5% 875 +21.0% 723 689 -0.6% 33.0% 518 +0.8% 9M 2003 * restated 9M 2004 * 9M 2005 30 3rd quarter 2005 Cash flow from operating activities Million CHF 1'864 1'669 1'527 Like-for-like (LFL)... equivalents 456.5% 106.3% 33 3rd quarter 2005 Financial position Million CHF 111.9% 98.5% 14,365 64.2% 12,835 13,669 13,466 10,661 6,846 31/12/2004 * Total shareholders' equity * restated 30/06 /2005 Net financial debt 30/09 /2005 Gearing 34 3rd quarter 2005 Price/volume variances per region Domestic cement prices +/- 9M 04/9M 05 * Europe Belgium France Germany Switzerland Italy Hungary Czech Republic... 24 3rd quarter 2005 Net sales by region Sales 9 months 2005 North America 24% Europe 37% Asia Pacific 12% Latin America 17% Africa Middle East 10% 25 3rd quarter 2005 Operating EBITDA Million CHF Margin 27.9% 27.0% 28.2%* 26.1% 3,501 2,792 2,537 Like-for-like (LFL) 82 Change in structure 53 Forex movements -214 Total change -79 3.2% 2.0% -8.2% -3.0% 9M 2003 * excluding Aggregate Industries and India... 27 3rd quarter 2005 Operating profit Margin Million CHF * 21.1% 19.2% 17.8% 16.5% 2,576 1,787 1,550 Like-for-like (LFL) 97 Goodwill amortization Change in structure 29 Forex movements -135 Total change -9 6.2% 265 17.1% 1.9% -8.7% -0.6% 23 -51 237 1.5% -3.3% 15.3% 9M 2003 * excluding Aggregate Industries and India 9M 2004 310 190 315 -26 789 17.3% 10.7% 17.6% -1.4% 44.2% 9M 2005 28 3rd quarter 2005 Operating... 3rd quarter 2005 Facts on Africa Middle East Higher sales volumes in all segments Substantially increased cement sales in Morocco, Lebanon and South Africa All Group companies contribute to the pleasing improvement in results Operating EBITDA increases 34 percent to CHF 474 million Internal operating EBITDA grows by 29 percent Holcim Morocco builds modern cement plant to better serve Casablanca and. .. structure 0.4% 0.0% 5.9% 0.4% 4.6% 2.5% Total 1.7% 2.3% 14.3% 5.7% 14.7% 7.4% 21 3rd quarter 2005 Sales volumes aggregates and ready-mix concrete Aggregates in million t Ready-mix concrete in million m3 122.3 + 55.8% 78.5 + 13.9% 68.9 + 1.5% 28.1 19.7 21.9 + 4.2% + 11.2% 9M 2003 9M 2004 28.3% 9M 2005 22 3rd quarter 2005 Net sales Million CHF 13'425 9'395 Like-for-Like (LFL) Change in structure Forex . Performance. Passion. Third quarter results and outlook 2005 2 3 rd quarter 2005 Key facts at a glance  Broad-based profit rise due to expansion and internal growth  A worldwide presence and the right. markets 15 3 rd quarter 2005  Housing and infrastructure construction strengthen growth  Higher demand for cement in India, Vietnam, Indonesia, Thailand and the Pacific region Asia Pacific 16 3 rd quarter. partners. Cement and aggregates Cement 11 3 rd quarter 2005 Facts on Latin America  Increase in cement and ready-mix concrete sales  Cemento de El Salvador – consolidated for the first time in 2005 –