ubs 2nd european large cap day holcim positioned for future growth bernhard a fuchs head investor relations marco knuchel investor relations june 3 2010 holcim

© Holcim Ltd 2010 Holcim – Positioned for future growth Bernhard A. Fuchs – Head Investor Relations Marco Knuchel – Investor Relations June 3, 2010 UBS – 2 nd European Large Cap Day Phu My Bridge, Vietnam 2 © Holcim Ltd 2010 June 3, 2010 2nd European Large Cap Day Agenda 1 Strategy and positioning 2 Value driven investment criteria 3 First quarter 2010 results 4 Conclusions 5 Appendix – Maps 3 © Holcim Ltd 2010 June 3, 2010 2nd European Large Cap Day 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 June 3, 2010 2nd European Large Cap Day Holcim Value Chain – positioning aligned with the maturity profile of a market 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 June 3, 2010 2nd European Large Cap Day -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 June 3, 2010 2nd European Large Cap Day 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 June 3, 2010 2nd European Large Cap Day 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 June 3, 2010 2nd European Large Cap Day 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 June 3, 2010 2nd European Large Cap Day 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 June 3, 2010 2nd European Large Cap Day 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 [...]... North America 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 14 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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 2nd European Large Cap Day June 3, 2010 Key financial figures... plant/ terminal Aggregates Cement capacity: 20.6 million t 23 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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 2nd European Large Cap Day June. .. 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 28 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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... investment analysis and discipline 12 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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 2nd European Large Cap Day June 3, 2010 Holcim s cement capacity expansion projects Cement capacity in million tonnes 20 13 2010 2011... savings – the savings implemented in 2009 will be retained Holcim will start the next upturn from a stronger position 18 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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 2nd European Large Cap Day June 3, 2010 Conclusions • Early internationalization... quarter 2010 results 4 Conclusions 5 Appendix – Maps 21 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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 2nd European Large Cap Day June 3, 2010 Positions in North America Cement plant... Day June 3, 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 25 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 2010 Positions Asia Pacific 1 1 1 1 Cement plant Grinding plant/terminal 1 Aggregates Participation: Cement plant Grinding... Grinding plant/terminal 1 Under construction Cement capacity: 90.7 million t; further 62.4 million t with partners 26 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 2010 Positions in India ACL and ACC Cement plant Grinding plant / terminal 1 1 1 Delhi Under construction 1 Calcutta 1 Market share Mumbai ACL/ACC 20% Others 44% Madras Aditya Birla Group 21% India, JP and Shree Cements 5% each 27 © Holcim. .. 21.0% 19.1% 17 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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... each 27 © Holcim Ltd 2010 2nd European Large Cap Day June 3, 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 . © Holcim Ltd 2010 Holcim – Positioned for future growth Bernhard A. Fuchs – Head Investor Relations Marco Knuchel – Investor Relations June 3, 2010 UBS – 2 nd European Large Cap Day Phu. Outlook Database (April 2010) , Holcim estimates 6 © Holcim Ltd 2010 June 3, 2010 2nd European Large Cap Day 1970 2000 2 030 2050 0 5 10 1 .3 2.4 2.9 3. 2 5.0 3. 3 6.4 2.8 urban rural 1970 2000 2 030 2050 0 5 10 1 .3 2.4 2.9 3. 2 5.0 3. 3 6.4 2.8 urban. how from past projects applied to new expansions Indonesia: Tuban Java 14 © Holcim Ltd 2010 June 3, 2010 2nd European Large Cap Day Holcim s cement capacity expansion projects Cement capacity in