Credit Suisse – European Building Materials Conference Theophil H Schlatter – CFO Bernhard A Fuchs – Head Investor Relations June 1, 2010 Phu My Bridge, Vietnam © Holcim Ltd 2010 Agenda Strategy and positioning Value driven investment criteria First quarter 2010 results Conclusions Appendix – Maps © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Holcim strategy… Geographic Diversification Product Focus • Two basic resources • Cement • Aggregates Local Management Global Standards • Business – strongly anchored in local markets • Truly global • Balanced between • Value-adding products and services • Ready-mix concrete • Asphalt • Concrete products • regions • mature / emerging markets Net sales1 Op EBITDA1 25% 29% 34% 37% 8% 6% 15 % 16 % Europe North America 8% 22% Latin America Africa Middle East Asia Pacific • Supported by global standards • Policies & directives • Exchange of know how & best practices / benchmarking …effective execution is the base for success Reported as per 12M 2009 YTD © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Holcim Value Chain – positioning aligned with the maturity profile of a market Supply Basic Materials Processing Cementitious Materials (cement, mineral components) Channels Transactional Transformational End - users Direct Sales Ready -mix Concrete Traders General Contractors Concrete Products Self - builders Masons Wholesalers Mortars Aggregates Retailers (sand, gravel, stone, recycled aggregates) Demand Applications and Construction Fields Asphalt Direct Sales Civil Engineering A p p l i c a t i o n s Housing Commercial / Industrial Building Infrastructure © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positioning – Holcim’s cement market portfolio Cumulated population growth 2010 - 2014E 12% Mature markets Asia Pacific excl India, Australia, China 46.9 Mt 10% 8% Australia 4.5 Mt 6% 2% Size of circles represents influenced capacity 2009 Africa Middle East 27.2 Mt India 50.7 Mt China 51.0 Mt Western Europe 26.8 Mt 0% Demand growth Latin America 34.2 Mt North America 20.6 Mt 4% Emerging markets Eastern Europe 24.3 Mt -2% -4% 2% 3% 4% 5% 6% 7% 8% 9% GDP per capita (at PPP) CAGR 2010 - 2014E Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference 10% 11% June 1, 2010 Positioning – Holcim’s aggregates market portfolio Cumulated population growth 2010 - 2014E 12% Mature markets Size of circles represents consolidated sales volumes 2009 10% Latin Asia 10.4 Mt1 America 11.8 Mt 8% 6% North America 40.2 Mt 4% 2% 0% Emerging markets Western Europe 70.0 Mt Demand growth Africa Middle East 2.6 Mt Eastern Europe 8.4 Mt -2% -4% 2% 3% 4% 5% 6% 7% 8% 9% GDP per capita (at PPP) CAGR 2010 - 2014E 10% 11% including months Australia Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Holcim generates its EBITDA in countries with GDP growth above average GDP Growth [%] (excl China) 2009 World Mature Market 2010 3.9% -1.1% 2012 4.7% 2.7% -2.3% Emerging Market 2011 3.5% 5.4% 0.6% 5.2% 3.9% 6.3% 6.8% 6.4% 6.7% GDP Growth weighted with Holcim op EBITDA 2009 per country [%] (excl China) 2009 Holcim op EBITDA split: Holcim World Mature: 30% Mature Market Emerging: 70% Emerging Market 5.7% 1.3% 3.1% -1.7% 4.4% 3.8% 8.2% 4.1% 8.8% 9.0% Source: Nominal GDP per Capita (at PPP) in USD: International Monetary Fund - World Economic Outlook Database (April 2010), Holcim estimates © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Demand drivers – population growth and urbanization World population Population in rural and urban areas 10 10 10 urban rural 6.4 5 Emerging markets 5.0 3.2 2.4 Mature markets 0 1970 2000 2030 2050 3.3 2.8 2.9 1.3 1970 2000 2030 2050 • Likely little or even no population growth in most developed countries while population growth in emerging countries will continue • In emerging and mature countries migration from rural areas into urban agglomerations will continue Source: United Nations, World Population Prospects, March 2009 – in billion © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Global construction outlook still rock-solid and dynamic! Largest construction markets 2009E Largest construction markets 2020E Global ranking USA China Japan Germany Spain France Italy South Korea India UK Canada Brazil Australia Russia Indonesia 10 11 12 13 14 15 Global ranking China USA India Japan South Korea Germany Spain Russia UK Canada France Italy Indonesia Brazil Australia 10 11 12 13 14 15 With a presence in 13 out of 15 top construction markets Holcim is very well positioned to capture growth opportunities Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 2009 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 All BRICs in one basket? Positions and challenges are very different! Holcim influenced capacity 2009 (M tonnes) Europe North America Latin America Africa Middle East Asia Pacific 51.1 20.6 34.2 27.2 153.1 18% 7% 12% 10% 54% Total influenced capacity - of which BRIC Holcim BRIC pro-forma op EBITDA 20091 286.2 100% 111.4 39% Brazil – platform for growth 16% 8% 4% 72% Brazil Russia/CIS India China Russia – Shurovo renewal Southeast – in % of Brazil Population GDP Cement demand 53% 73% 66% Brasilia Belo Horizonte Sao Paulo ~130km ~85km Rio de Janeiro Pro-forma incl China (Holcim participation in Huaxin Cement is 39.9 percent – therefore it’s not fully consolidated) © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference 10 June 1, 2010 Agenda Strategy and positioning Value driven investment criteria First quarter 2010 results Conclusions Appendix – Maps 17 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Key financial figures Million CHF (if not otherwise stated) Full Year 1st Quarter +/- 2009 2009 2010 LFL CIS Sales volumes - Cement (mt) 131.9 29.7 31.0 3.4% 1.0% 4.4% - Aggregates (mt) 143.4 25.1 29.5 -2.8% 20.3% 17.5% - Ready-mix (mm3) 41.8 8.7 9.5 -4.6% 13.8% 9.2% 21,132 4,523 4'741 -3.3% 6.3% 1.8% 4.8% Operating EBITDA 4,630 763 909 12.7% 4.7% 1.7% 19.1% Operating profit Net income before minorities Net income (loss) Holcim shareholders Cash flow 2,781 343 460 27.7% 3.2% 3.2% 34.1% 1,958 195 66 -51.3% 0.5% -15.4% -66.2% 1,471 74 3,888 -161 -257 4.93 0.26 -0.21 Net sales EPS in CHF 1 -68 -154.1% -72.7% Calculated on the weighted average number of shares outstanding Based on IAS 33 the average number of shares was retrospectively increased by 8.8% © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference FX Total 1.4% -39.2% -191.9% 1.9% 11.2% -59.6% -180.8% 18 June 1, 2010 Operating EBITDA by region Million CHF 424 119 -14 -54 Q1 2008 Q1 2009 Q1 2010 137 507 -29 403 78 419 91 105 284 253 248 Δ Q1 09/Q1 10 Europe North America Latin America Africa Middle East Asia Pacific Total LFL Change in Currency structure 14.3% 2.5% -1.7% 40.7% 0.0% 5.6% -2.4% 0.0% 0.4% 28.2% -3.8% -7.7% 8.4% 8.8% 3.8% 12.7% 4.7% 1.7% Total 15.1% 46.3% -2.0% 16.7% 21.0% 19.1% 19 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Outlook 2010 – confirmed • Europe – markets will recover but only slowly • North America – no rapid recovery in the construction market • Latin America and Africa Middle East – expect business to develop on a stable footing • Asia Pacific – markets will remain on track for growth • Australia – the acquisition will make a solid contribution • Cost savings – the savings implemented in 2009 will be retained Holcim will start the next upturn from a stronger position 20 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Agenda Strategy and positioning Value driven investment criteria First quarter 2010 results Conclusions Appendix – Maps 21 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Conclusions • Early internationalization – today, Holcim is truly global with strong positions in the most attractive construction markets worldwide • Holcim built up a balanced portfolio – approximately 70 percent of operating EBITDA is generated in fast growing countries • BRICs account for approximately 30 percent of Holcim’s pro-forma operating EBITDA • Challenges in the BRICs are very different and need customized approaches • Value driven investment criteria – leverage know how from former projects to new expansions globally • Good performance in the first quarter 2010 – organic growth achieved Holcim’s strategy has successfully executed on the opportunities offered by the emerging markets 22 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Agenda Strategy and positioning Value driven investment criteria First quarter 2010 results Conclusions Appendix – Maps 23 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positions in Europe Cement plant Grinding plant/ terminal Aggregates Participation: Cement plant Under construction Cement capacity: 49.4 million t; further 1.7 million t with partners 24 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positions in North America Cement plant Grinding plant/ terminal Aggregates Cement capacity: 20.6 million t 25 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positions in Latin America 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Aggregates Under construction Cement capacity: 31.0 million t; further 3.2 million t with partners 26 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positions in Africa Middle East Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Aggregates Cement capacity: 11.2 million t; further 16.0 million t with partners 27 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positions Asia Pacific 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Under construction Cement capacity: 90.7 million t; further 62.4 million t with partners 28 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Positions in India ACL and ACC Cement plant Grinding plant / terminal 1 Delhi Under construction Calcutta Market share Mumbai ACL/ACC 20% Others 44% Madras Aditya Birla Group 21% India, JP and Shree Cements 5% each 29 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 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 30 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 Contact information and event calendar Contact information Event calendar Bernhard A Fuchs Marco Knuchel Binit Sanghvi August 19, 2010 Half-year results for 2010 November 10, 2010 Press and analyst conference for the third quarter 2010 Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations@holcim.com www.holcim.com/investors March 2, 2011 Press and analyst conference for the annual results for 2010 May 4, 2011 Results for the first quarter 2011 May 5, 2011 General meeting of shareholders Mailing list: www.holcim.com/subscribe 31 © Holcim Ltd 2010 Credit Suisse – European Building Materials Conference June 1, 2010 ... Russia Indonesia 10 11 12 13 14 15 Global ranking China USA India Japan South Korea Germany Spain Russia UK Canada France Italy Indonesia Brazil Australia 10 11 12 13 14 15 With a presence in 13 ... Database (April 2 010 ), Holcim estimates © Holcim Ltd 2 010 Credit Suisse – European Building Materials Conference June 1, 2 010 Demand drivers – population growth and urbanization World population... Latin America Africa Middle East Asia Pacific 2 .1 1.7 3.8 2.3 1. 8 4 .1 Total Group 8.0 3.6 Total 1. 6 3.5 5.2 1. 6 13 .1 16 © Holcim Ltd 2 010 Credit Suisse – European Building Materials Conference June