© Holcim Ltd 2010 Holcim – Positioned for future growth Marco Knuchel – Investor Relations Binit Sanghvi – Investor Relations May 18, 2010 Deutsche Bank – Swiss Equities Conference Phu My Bridge, Vietnam 2 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Agenda 1 Strategy and positioning 2 Value driven investment criteria 3 First quarter 2010 results 4 Conclusions 5 Appendix – Maps 3 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Holcim strategy… …effective execution is the base for success 1 Reported as per 12M 2009 YTD Product Focus Geographic Diversification Local Management Global Standards • Two basic resources • Cement • Aggregates • Value-adding products and services • Ready-mix concrete • Asphalt • Concrete products • Business – strongly anchored in local markets • Supported by global standards • Policies & directives • Exchange of know how & best practices / benchmarking • Truly global • Balanced between • regions • mature / emerging markets 34% 16 % 15 % 6% 29% 25% 8% 22% 8% 37% Latin America Africa Middle East Asia Pacific Europe North America Net sales 1 Op. EBITDA 1 4 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Holcim Value Chain Transactional Mortars Ready-mix Concrete Asphalt Concrete Products Direct Sales Direct Sales Traders Wholesalers Retailers Traders Wholesalers Retailers End-users General Contractors Civil Engineering Channels Transformational Masons Self - builders Cementitious Materials (cement, mineral components) Supply Basic Materials Processing Aggregates (sand, gravel, stone, recycled aggregates) Infrastructure Commercial / Industrial Building Housing Demand A p p l i c a t i o n s Applications and Construction Fields 5 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference -1.1% 0.6% 1.3% -1.7% 4.4% -2.3% GDP Growth [%] (excl. China) World Mature Market Emerging Market 2009 Holcim World Mature Market Emerging Market GDP Growth weighted with Holcim op. EBITDA 2009 per country [%] (excl. China) 3.9% 2.7% 5.4% 5.7% 3.1% 8.2% 4.7% 3.5% 6.3% 6.4% 3.8% 8.8% 5.2% 3.9% 6.8% 6.7% 4.1% 9.0% 2010 2011 2012 Holcim generates its EBITDA in countries with GDP growth above average 2009 Holcim op. EBITDA split: Mature: 30% Emerging: 70% Source: Nominal GDP per Capita (at PPP) in USD: International Monetary Fund - World Economic Outlook Database (April 2010), Holcim estimates 6 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference 1970 2000 2030 2050 0 5 10 1.3 2.4 2.9 3.2 5.0 3.3 6.4 2.8 urban rural 1970 2000 2030 2050 0 5 10 1.3 2.4 2.9 3.2 5.0 3.3 6.4 2.8 urban rural 0 5 10 2050 1970 2000 2030 0 5 10 Emerging markets Mature markets 0 5 10 2050 1970 2000 2030 0 5 10 0 5 10 2050 1970 2000 2030 0 5 10 Emerging markets Mature markets Demand drivers – population growth and urbanization World population • 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 Population in rural and urban areas 7 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Global construction outlook still rock-solid and dynamic! With a presence in 13 out of 15 top construction markets Holcim is very well positioned to capture growth opportunities USA 1 China 2 Japan 3 Germany 4 Spain 5 France 6 Italy 7 South Korea 8 India 9 UK 10 Canada 11 Brazil 12 Australia 13 Russia 14 Indonesia 15 China 1 USA 2 India 3 Japan 4 South Korea 5 Germany 6 Spain 7 Russia 8 UK 9 Canada 10 France 11 Italy 12 Indonesia 13 Brazil 14 Australia 15 Largest construction markets 2009E Largest construction markets 2020E Global ranking Global ranking Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 2009 8 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Holcim BRIC pro-forma op. EBITDA 2009 1 Holcim influenced capacity 2009 (M tonnes) Brazil Russia/CIS India China 8% 4% 16% 72% Europe 51.1 18% North America 20.6 7% Latin America 34.2 12% Africa Middle East 27.2 10% Asia Pacific 153.1 54% Total influenced capacity 286.2 100% - of which BRIC 111.4 39% Russia – Shurovo renewal All BRICs in one basket? Positions and challenges are very different! 1 Pro-forma incl. China (Holcim participation in Huaxin Cement is 39.9 percent – therefore it’s not fully consolidated) Brazil – platform for growth Brasilia Belo Horizonte Rio de Janeiro Sao Paulo Southeast – in % of Brazil Population 53% GDP 73% Cement demand 66% ~85km~130km 9 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Holcim BRIC pro-forma op. EBITDA 2009 1 Holcim influenced capacity 2009 (M tonnes) Brazil Russia/CIS India China 8% 4% 16% 72% Europe 51.1 18% North America 20.6 7% Latin America 34.2 12% Africa Middle East 27.2 10% Asia Pacific 153.1 54% Total influenced capacity 286.2 100% - of which BRIC 111.4 39% All BRICs in one basket? Positions and challenges are very different! Delhi Calcutta Mumbai Madras Pan-Indian footprint Attractive positions Rauri in the Himalayas China – focus on provinces >3,000 km • Eight provinces along the Yangtze River • Market size of 450M t • Huaxin – capacity 51M tonnes 1 Pro-forma incl. China (Holcim participation in Huaxin Cement is 39.9 percent – therefore it’s not fully consolidated) 10 © Holcim Ltd 2010 May 18, 2010Deutsche Bank – Swiss Equities Conference Not only BRICs – a lot of other emerging markets show above average growth rates… …and Holcim holds top-three market positions in most of them CAGR 2010 – 2020 construction output Order of other emerging markets according to construction market size. Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 2009 World average 10% 5% 0% W o r l d B r a z i l R u s s i a C h i n a I n d i a I n d o n e s i a M e x i c o P o l a n d T u r k e y S a u d i A r a b i a G r e e c e U A E C o l o m b i a R o m a n i a A r g e n t i n a C z e c h R e p u b l i c P h i l i p p i n e s S o u t h A f r i c a T h a i l a n d E g y p t V i e t n a m H u n g a r y M o r o c c o U k r a i n e B u l g a r i a N i g e r i a No Holcim presence Markets with Holcim presence [...]... retained Holcim will start the next upturn from a stronger position 18 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Agenda 1 Strategy and positioning 2 Value driven investment criteria 3 First quarter 2010 results 4 Conclusions 5 Appendix – Maps 19 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Conclusions • Early internationalization – today, Holcim. .. presentation Holcim assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise 28 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 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. .. 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 29 © Holcim Ltd 2010 Deutsche Bank – Swiss. .. 1.6 13.1 14 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Agenda 1 Strategy and positioning 2 Value driven investment criteria 3 First quarter 2010 results 4 Conclusions 5 Appendix – Maps 15 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Key financial figures Million CHF (if not otherwise stated) Full Year 1st Quarter +/- 2009 2009 2010 LFL CIS Sales... quarter 2010 – organic growth achieved Holcim s strategy has successfully executed on the opportunities offered by the emerging markets 20 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Agenda 1 Strategy and positioning 2 Value driven investment criteria 3 First quarter 2010 results 4 Conclusions 5 Appendix – Maps 21 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May. .. with partners 25 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Positions Asia Pacific 1 1 1 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal 1 Under construction Cement capacity: 90.7 million t; further 62.4 million t with partners 26 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Positions in India... 23 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Positions in Latin America 1 1 Cement plant 1 Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Aggregates 1 Under construction Cement capacity: 31.0 million t; further 3.2 million t with partners 24 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Positions in Africa... Group 21% India, JP and Shree Cements 5% each 27 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 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... Deutsche Bank – Swiss Equities Conference May 18, 2010 Organic expansion – most efficient way to grow USA: Ste Genevieve Indonesia: Tuban Java Mexico: Hermosillo Know how from past projects applied to new expansions 13 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Holcim s cement capacity expansion projects Cement capacity in million tonnes 2013 2010 2011 Europe North America Latin... 18, 2010 Positions in Europe 1 Cement plant Grinding plant/ terminal Aggregates Participation: 1 Cement plant 1 Under construction Cement capacity: 49.4 million t; further 1.7 million t with partners 22 © Holcim Ltd 2010 Deutsche Bank – Swiss Equities Conference May 18, 2010 Positions in North America Cement plant Grinding plant/ terminal Aggregates Cement capacity: 20.6 million t 23 © Holcim Ltd 2010 . © Holcim Ltd 2010 Holcim – Positioned for future growth Marco Knuchel – Investor Relations Binit Sanghvi – Investor Relations May 18, 2010 Deutsche Bank – Swiss Equities Conference Phu. Construction Perspectives, Oxford Economics, November 2009 8 © Holcim Ltd 2010 May 18, 201 0Deutsche Bank – Swiss Equities Conference Holcim BRIC pro-forma op. EBITDA 2009 1 Holcim influenced capacity. 73% Cement demand 66% ~85km~130km 9 © Holcim Ltd 2010 May 18, 201 0Deutsche Bank – Swiss Equities Conference Holcim BRIC pro-forma op. EBITDA 2009 1 Holcim influenced capacity 2009 (M tonnes) Brazil Russia/CIS India China 8% 4% 16% 72% Europe