© Holcim Ltd 2011 Deutsche Bank Swiss Equities Conference 2011 Holcim – Ready to shift gears Bernhard A. Fuchs – Head Investor Relations May 18, 2011 2 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 Agenda 1 Strategy & positioning based on long term growth 2 Performance driven management teams 3 Ready to shift gears – cash generation capacity 4 Conclusions 3 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 Founded 1912, Holcim expanded over time and is present today in the most attractive construction markets worldwide 1930 1950 1960 1970 1990 2000 1920 1980 2011 4 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 • Two basic resources Cement Aggregates • Value-adding products and services Ready-mix concrete Asphalt Concrete products Holcim strategy… …the effective execution is the base for success 1 FY 2010 Product Focus Geographic Diversification Local Management Global Standards • Business – strongly anchored in local markets • ~ 2500 locations • Supported by global standards Policies & directives Exchange of know how & best practices / benchmarking 38.9% Latin America Africa Middle East Asia Pacific Europe North America • Truly global • Balanced between regions mature / emerging markets Net sales 1 Op. EBITDA 1 29.3% 22.3% 14.6% 15.5% 4.9% 35.7% 7.7% 21.3% 9.8% 5 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 The emerging markets show growth while the mature economies continue to seek traction -8 -6 -4 -2 0 2 4 6 8 10 12 2009 2011 Annual GDP growth in percent Source: IMF World Economic Outlook Update April 2011 Mature Total Emerging Total • Stimulus measures quickly changed to austerity measures in mature markets • Strong growth continuing in Asia Pacific and parts of Latin America Holcim’s strategy remains consistent through the cycle 6 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 Positioning – Holcim’s cement market portfolio -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, April 2011 GDP per capita (at PPP) CAGR 2010 - 2014E Cumulated population growth 2010 - 2014E Western Europe 27.0 Mt Eastern Europe 23.9 Mt Africa Middle East 27.2 Mt Mature markets Emerging markets Size of circles represents influenced capacity 2010 North America 23.2 Mt India 54.0 Mt China 54.7 Mt Asia Pacific excl. India, Oceania, China 46.3 Mt Latin America 36.6 Mt Demand growth Oceania 4.9 Mt 7 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 Positioning – Holcim’s aggregates market portfolio -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% Western Europe 69.3 Mt Africa Middle East 2.5 Mt Latin America 12.2 Mt North America 39.2 Mt Asia excl. Oceania 3.2 Mt Mature markets Emerging markets Size of circles represents consolidated sales volumes 2010 Eastern Europe 8.2 Mt Demand growth GDP per capita (at PPP) CAGR 2010 - 2014E Cumulated population growth 2010 - 2014E Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, April 2011 Oceania 23.2 Mt 8 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 Our geographic portfolio captures the long term demand drivers Population growth (2010 – 2050) Urbanization (2010 – 2050) Refurbishment (2010 – 2050) Holcim sales split development Holcim operating EBITDA split development •Additional 2 billion people (+40%) in emerging markets •No growth between 2010 and 2050 on average in mature markets •Emerging markets: Urban population + 103% / Rural population -14% •Mature markets: Urban population + 18% / Rural population -43% Key drivers for continued growth •Emerging markets: Infrastructure void and generally inadequate in many markets / modernization projects •Mature markets: Huge need for major modernization / replacement projects Source: United Nations (World Urbanization Prospects & World Population Prospects - 2010), Oxford Economics, March 2011 0% 25% 50% 75% 100% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Emerging Markets Mature Markets 0% 25% 50% 75% 100% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Emerging Markets Mature Markets 9 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 0 1 2 3 4 5 6 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Population bn Urban mature markets Urban emerging markets Rural mature markets Rural emerging markets “Popurbanization” = population growth + urbanization shifts the urban population from ~ 50% to ~ 70% in 2050 Source: United Nations (World Urbanization Prospects - 2010) 2010: ~ 50% urban 2050: ~ 70% urban 10 © Holcim Ltd 2011 May 18, 2011 Swiss Equities Conference 2011 0 1'000 2'000 3'000 4'000 5'000 6'000 7'000 GDP / capita emerging markets USD / capita 2010E 2020E 0 10'000 20'000 30'000 40'000 50'000 60'000 70'000 80'000 90'000 2010E 2020E USD bn Mature markets Emerging markets The boost in demand will be strongly driven by the evolving middle class in the emerging markets… Sources: Oxford Economics, March 2011, The Economist, Pocket World in Figures, 2011, Euromonitor International, March 2010 + 8 3 % + 2 0 % 4 . 6 % C A G R + 5 6 . 5 % GDP development GDP / capita development • Between 2010 and 2020 China and India for example are expected to see the number of middle class households increase from around 150 million to over 300 million [...]... statements whether as a result of new information, future events or otherwise 31 © Holcim Ltd 2011 Swiss Equities Conference 2011 May 18, 2011 Contact information and event calendar Contact information Bernhard A Fuchs Binit B Sanghvi John M Feigl Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor. relations @holcim. com www .holcim. com/investors Event calendar August 18, 2011 Half-year... Financing in line with Holcim policy • Investment scorecard • Accountability Success factor – rigorous investment analysis and discipline 28 © Holcim Ltd 2011 Swiss Equities Conference 2011 May 18, 2011 Agenda 1 Strategy & positioning based on long term growth 2 Performance driven management teams 3 Ready to shift gears – cash generation capacity 4 Conclusions 29 © Holcim Ltd 2011 Swiss Equities Conference. .. resources, and • CSR is about local embedding & stakeholder outreach • Sustainable Construction is the lever in the value chain SD – Sustainable Development © Holcim Ltd 2011 CSR – Corporate Social Responsibility Swiss Equities Conference 2011 23 May 18, 2011 Agenda 1 Strategy & positioning based on long term growth 2 Performance driven management teams 3 Ready to shift gears – cash generation capacity... resource management in a broad sense Goal Creation of Value Geographic Diversification Strategy Product Focus Mindsets Sustainable Better Permanent Environmental Cost Marketing Performance Management Innovation Base Local Management Global Standards Human Resources Excellence Corporate Social Responsibility People • Each employee is an ambassador of our SD culture • SD is about stewardship of our natural... Sustainable high equipment availability at adequate maintenance costs and replacement investments Plant Master Plan Passion for Performance Top Class Maintenance For strategic development of the plant eight KPI’s Benchmarking fosters continuous improvement Measuring excellence in cement manufacturing ranking People development Best in class Best in class Plant X AFR – Alternative Fuels and Raw Materials... Transactional Transformational Direct Sales Ready -mix Concrete Traders Concrete Products General Contractors Masons, Self- builders Wholesalers Mortars Aggregates Retailers (sand, gravel, stone, recycled aggregates) Demand Applications and Construction Fields End - users Asphalt Civil engineering contractors A p p l i c a t i o n s Housing Commercial / Industrial Building Pulling from the customer side Infrastructure... mining practices 17 AGG – Aggregates © Holcim Ltd 2011 Evaluations, Results plans Reporting Performance Excellence in AGG1 AGG Managers Training Example: AOR – Process Optimization OPE Swiss Equities Conference 2011 May 18, 2011 Customers needs and our position in the market People development Operational performance excellence Create value from our asset base and superior positioning „Glue“ of the Holcim. .. 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... Direct Sales • Drivers of construction are urbanization & infrastructure • Sharpen our front-end skills and understand what our customers and our customer‘s customers really need • Product innovation & value added services have to be geared to this end • As solution provider we can differentiate & create value 14 © Holcim Ltd 2011 Swiss Equities Conference 2011 May 18, 2011 Customers needs and our... Half-year results for 2011 November 9, 2011 Press and analyst conference for the third quarter 2011 February 29, 2012 Press and analyst conference on annual results for 2011 April 17, 2012 General meeting of shareholders May 9, 2012 Results for the first quarter 2012 Mailing list: www .holcim. com/subscribe 32 © Holcim Ltd 2011 Swiss Equities Conference 2011 May 18, 2011 Strength Performance Passion 33 © Holcim . © Holcim Ltd 2011 Deutsche Bank Swiss Equities Conference 2011 Holcim – Ready to shift gears Bernhard A. Fuchs – Head Investor Relations May 18, 2011 2 © Holcim Ltd 2011 May 18, 2011 Swiss Equities. Update April 2011 Mature Total Emerging Total • Stimulus measures quickly changed to austerity measures in mature markets • Strong growth continuing in Asia Pacific and parts of Latin America Holcim s. Equities Conference 2011 Agenda 1 Strategy & positioning based on long term growth 2 Performance driven management teams 3 Ready to shift gears – cash generation capacity 4 Conclusions 3 © Holcim