© Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Region North America Benoît-H. Koch – Executive Committee North America St. Louis, September 14, 2010 2 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Executive Summary Region North America • North America and the US in particular continues to be important in economic terms and for Holcim due to its sheer size and growth prospects • Holcim has over many years invested in a flexible and efficient asset base that will allow it to capitalize on the recovery • We have consistently executed our strategy in North America before, during and after the recession • We are organized to best meet the market demands in vastly different markets across Canada and the US allowing for integrated solution offerings where needed • Synergies have and continue to be achieved in North America by optimizing organizational structures, shared service centers and tax efficient structures 3 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 The importance of North America 2 Our North American portfolio and major recent acquisitions 3 How we are reaping the benefits of these acquisitions 4 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 The US remains the country with the largest economy – its GDP is higher than Japan, China and Germany combined GDPs of US States vs. Nations Worldwide [base year 2007]2009 GDP Comparison [bn USD] Source: World Bank and IMF 14’256 5’068 3’347 1’336 Source: MatadorNetwork 12’456 4’909 US GDP is expected to grow by 4.3% (CAGR 2010 – 2014) 5 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 North America will maintain its high population growth, increasing the need for housing & infrastructure ultimately driving cement demand -1 % 0 % 1 % 2 % 0,9 0,0 1,1 0,6 -0,2 0,7 2020-25 0,7 -0,1 0,9 2015-20 0,8 0,0 1,0 2010-15 North America Europe World 2045-50 0,4 -0,3 0,3 2040-45 0,4 -0,2 0,4 2035-40 0,5 -0,2 0,5 2030-35 0,5 -0,2 0,6 2025-30 Increase of North American Population by +10% from 2010 to 2020 Forecasted Population Growth 2010-2015 [CAGR] Source: UNData - United Nations Data Retrieval System (Medium Variant) 6 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 US Cement Demand Forecasts [M t cem] Despite a notably lower Summer Forecast, PCA is still predicting a steady recovery of cement demand over the next 5 years 80 71 200820072006 127 84 2015 120 2014201320122009 2010 100 120 60 2011 0 40 20 140 +16% +2% +19% +71% -45% +14% PCA 2008 Summer FC PCA 2007 Fall FC PCA 2010 Spring FC PCA 2009 Fall FC PCA 2009 Summer FC PCA 2010 Summer FC Source: Portland Cement Association (PCA) 7 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 North America is crucial to Holcim’s geographic diversification strategy – this is true for the cement segment… Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010 Cumulated population growth 2010 - 2014E Demand growth -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% Western Europe 26.8 Mt Eastern Europe 24.3 Mt Africa Middle East 27.2 Mt North America 20.6 Mt India 50.7 Mt China 51.0 Mt Asia Pacific excl. India, Australia, China 46.9 Mt Latin America 34.2 Mt Australia 4.5 Mt Mature markets Emerging markets Size of circles represents influenced capacity 2009 GDP per capita (at PPP) CAGR 2010 - 2014E 8 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 … as well as for the Aggregates segment, where the developed countries have a higher weight Western Europe 70.0 Mt North America 40.2 Mt 1 including 3 months Australia Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010 GDP per capita (at PPP) CAGR 2010 - 2014E Cumulated population growth 2010 - 2014E -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% Western Europe 70.0 Mt Africa Middle East 2.6 Mt North America 40.2 Mt Asia 10.4 Mt 1 Eastern Europe 8.4 Mt Mature markets Emerging markets Size of circles represents consolidated sales volume 2009 Latin America 11.8 Mt Demand growth 9 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 The importance of North America 2 Our North American portfolio and major recent acquisitions 3 How we are reaping the benefits of these acquisitions 10 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 The extensive network of plants, terminals, quarries and pits will allow Holcim to participate in the recovery of demand PCA Forecasted Cement Demand Growth [CAGR 2009-15] Source: PCA US State Forecast Summer 2010 (Aug 2010), PCA Canadian Summer 2010 Forecast (Aug 2010) Cement Plant Mothballed Cement Plant z Cement Terminal S Aggregates Quarry/Pit lgdXArC o 0.0% to 2.5% lgdXArC o 2.5% to 5.0% lgdXArC o 5.0% to 7.5% lgdXArC o 7.5% to 10.0% lgdXArC o 10.0% to 12.5% lgdXArC o 12.5% to 15.0% lgdXArC o 15.0% to 17.5% z z z z z z z z zz z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z S SSS S S S S S S S S S S S S S S S S S S S S S S S S S SS S S S S S S S S S S S S S S SS S S S S S S S S S S S S S S S S S S S z z z z z z z z z z z z z S S S S S S S S S S S S S S S S S S S S S SS S S S S S S S SS S S Catskill Holly Hill Theodore Trident Ada Midlothian Portland Devil's Slide Hagerstown Joliette Mississauga Ste. Genevieve Recently inaugurated Ste. Genevieve plant can serve most of the markets along the Mississippi in a cost effective way [...]... and his staff CEO Aggregate Industries US W Glusac North Region Nort East Region South Region Mid Atlandic Region Western Region Midwest Region 16 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 In Canada on the other hand, industry structure and geographic concentration of operations require a single integrated company Structure Comments CEO HOLCIM Canada P Ostrander • Market & HCA (Holcim. .. more from stimulus road & highway projects 18 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 The buyout of Holcim Canada* minority shareholders allowed to get full strategic freedom and to streamline NA operations The full ownership of Holcim Canada (HCA) allowed to substantially reduce costs in North America, through: Integration of HCA’s US operations into Holcim US Further centralization... quickly, whilst keeping the current low cost levels • The recovery of the North American economy is therefore expected to result in above average returns 21 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Contact information Bernhard A Fuchs Marco Knuchel Binit Sanghvi Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors Mailing... operations geographically more concentrated in Canada than in the US • Higher degree of vertical integration than in the US • Higher degree of consolidation on all product levels than in the US • EXCO Member B -H Koch Regional structure under one VP allows the optimization of vertical integration strategy VP Ontario & Western Region VP Quebec & Atlantic Region 17 © Holcim Ltd 2010 Investor / Analyst Capital... of our North American (NA) organizations have been standardized and centralized 2001 Accounting 2008 2009 2010 HUS HCA AIUS Payroll 2007 HUS HCA AIUS Risk Management 2006 HUS HCA AIUS Procurement 2005 HUS HCA AIUS Tax 2004 HUS HCA AIUS Treasury 2003 HUS HCA AIUS IT Service Centre 2002 HUS HCA AIUS Separate Service Centre Merger of Service Centres Across Operating Companies HUS = Holcim US HCA = Holcim. .. between HCA and Holcim US Process standardization across HCA and HUS Tax efficiency gains Avoidance of costs for SLC* being a public company Integrated North American market strategy Through the buyout of SLC* minorities, Holcim was able to realize sustainable synergies of USD 24M p.a * Former company name: St Lawrence Cement (SLC) © Holcim Ltd 2010 19 Investor / Analyst Capital Markets Event 2010 An... Acquisition of Aggregate Industries 11 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Major acquisitions over the last 5 years in the US, provided Holcim the required base for the implementation of its twin-leg strategy Holcim s main Acquisition in N.A in the last 5 years Aggregate Industries (2005): RMX: 96 Plants Agg: 77 Operations, 2’280M t reserves* Other: 43 Asphalt Plants Meyer Materials... 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 As part of Holcim' s global commitment to compliance with competition laws, please note that this presentation has been comprehensively reviewed by counsel in both the United States and Switzerland 23 © Holcim Ltd 2010. .. recent acquisitions How we are reaping the benefits of these acquisitions 13 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 With the twin-leg strategy, Holcim also diversified its product portfolio, moved closer to the end customer and became a true solution provider Holcim Value Chain Supply Basic Materials Processing Cementitious Materials (cement, mineral components) Channels Transactional... Materials Paul Ostrander – CEO Holcim Canada Former Positions: - Senior Vice President Ontario Division, Holcim Canada - General Manager Dufferin Construction 15 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 US Area Management Structure allows synergies to be captured while maintaining strong & entrepreneurial local management Structure Comments • CEO HOLCIM US B Terver Maintains the required . © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Region North America Benoît -H. Koch – Executive Committee North America St. Louis, September 14, 2010 2 © Holcim Ltd 2010 Investor. acquisitions 4 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 The US remains the country with the largest economy – its GDP is higher than Japan, China and Germany combined GDPs of US States. PPP) CAGR 2010 - 2014E 8 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 … as well as for the Aggregates segment, where the developed countries have a higher weight Western Europe 70.0