Strength. Performance. Passion. © 2012 Holcim Ltd Holcim in Latin America Andreas Leu, Member of the Executive Committee © 2012 Holcim Ltd © 2012 Holcim Ltd Agenda Latin America from a Macroeconomic Perspective 3 Holcim in Latin America 16 - A Rich History 16 - A Promising Future 31 Concluding Remarks 40 Investor and Analyst Day 2012 2 © 2012 Holcim Ltd Mexico Guatemala Honduras Costa Rica El Salvador Nicaragua Panama Ecuador Colombia Chile Peru Venezuela Guayanas Brazil Argentina Uruguay Paraguay Bolivia Cuba Haiti/ Dom.Rep. Puerto Rico Jamaica ~8‘000 km ~10‘700 km Latin America, a large region… Latin America covers an area of around 21 Mio km 2 Argentina accounts for roughly 13% of Latin America in terms of size and is roughly 16% smaller than India Brazil accounts for roughly 40% of Latin America in terms of size and is nearly 12% larger than Australia Investor and Analyst Day 2012 3 © 2012 Holcim Ltd …with a young and growing population… 40.8 Mio people 196.7 Mio people 114.8 Mio people 17.3 Mio people 29.4 Mio people 46.9 Mio people Buenos Aires (13.4 Mio) Bogota (8.5 Mio) Lima (9.0 Mio) Mexico D.F. (20.1 Mio) Rio de Janeiro (11.9 Mio) Sao Paulo (19.7 Mio) Santiago (6.0 Mio) Belo Horizonte (5.4 Mio) Caracas (5.0 Mio) Source: : BMI Country Business Forecast 3Q12, United Nations World Urbanization Prospects report (data: 2011) 0 100 200 300 400 500 600 700 2011 2020E < 25 years old > 25 years old 327 384 268 267 • An increasing number of people is entering the middle class • The continued strong youth base offers future growth Mio people Investor and Analyst Day 2012 4 © 2012 Holcim Ltd 0 3000 6000 9000 12000 15000 18000 0 2000 4000 6000 8000 10000 12000 2011 2020E GDP nominal GDP per capita (rhs) …and income power development potential… 10’076 USD p.c. 12’577 USD p.c. 10’059 USD p.c. 10’771 USD p.c. 4’080 USD p.c. 5’108 USD p.c. Source: : BMI Country Business Forecast 3Q12 (data: 2011) USD bn USD • CAGR GDP nominal: 7.9% • CAGR GDP per capita: 6.8% 9’638 17’415 5’738 11’330 Investor and Analyst Day 2012 5 © 2012 Holcim Ltd …with many similarities… • 3 regional commercial blocks • 2 main languages • 1 main religion • 91% literacy • 79% urbanization Trade areas Mercosur (Mercado Común del Sur) CAN (Comunidad Andina) APEC (Asia-Pacific Economic Cooperation NAFTA (North America Free Trade Agreement) SICA (Sistema de la Integración Centro Americana Source: WDI (2010/11 data) Main Free Trade Agreements Investor and Analyst Day 2012 6 © 2012 Holcim Ltd Rich ethnic (> 500 indigenous languages) & cultural diversity … but more diverse than often perceived abroad Source: Wikipedia, Google images Investor and Analyst Day 2012 7 © 2012 Holcim Ltd Weather, biodiversity & natural resources …but more diverse than often perceived abroad Source: Wikipedia, Google images Investor and Analyst Day 2012 8 © 2012 Holcim Ltd Political orientation, social & economic stability/development, security, trade partners, etc. …but more diverse than often perceived abroad Source: Wikipedia, Google images Investor and Analyst Day 2012 9 © 2012 Holcim Ltd However, a common need for infrastructure and housing, Source: CEPAL & internal estimates. Country Project Panama Canal expansion Peru/Brazil HW Peru-Brazil Peru Port Tacna Brazil Port Açu Brazil Dam Monte Belo Paraguay Aluminium plant Chile Casela Chile Dam Castilla 8 12 13 14 15 20 25 Examples of announced infrastructure projects 26 x x Projects < USD 3.5 bn Projects > USD 3.5 bn Roughly USD 300 bn housing deficit (~ 18.5 million units) and more than USD 160 bn announced infrastructure projects to be executed until 2020 Investor and Analyst Day 2012 10 [...]... • and establishing itself as a good neighbor in the community Over the last 60 years Holcim has laid the foundations for a sustainable business in Latin America Investor and Analyst Day 2012 © 2012 Holcim Ltd 26 Consolidating a sustainable, profitable business • Asia heads today Holcim growth but Latin America continues generating cash for the Group • Some 2011 figures: • Lost Time Injury Frequency... sum of total shareholder’s gain (share price growth + dividends paid) divided by previous year’s share price) Investor and Analyst Day 2012 © 2012 Holcim Ltd 29 Agenda Latin America from a Macroeconomic Perspective Holcim in Latin America - A Rich History - A Promising Future Concluding Remarks Investor and Analyst Day 2012 3 16 16 31 40 © 2012 Holcim Ltd 30 Holcim Leadership journey in Latin America. .. according to 2020 national cement demand estimates Investor and Analyst Day 2012 Source: Global Cement Review & internal estimates © 2012 Holcim Ltd 13 Agenda Latin America from a Macroeconomic Perspective Holcim in Latin America - A Rich History - A Promising Future Concluding Remarks Investor and Analyst Day 2012 3 16 16 31 40 © 2012 Holcim Ltd 14 Agenda Latin America from a Macroeconomic Perspective Holcim. .. estimates Investor and Analyst Day 2012 Indicates Holcim country presence © 2012 Holcim Ltd 16 Investing in its people • Training at all levels of the company • • More than 90% of employees enrolled in formal training 355’476 hours spent on training in 2011 • Implementation of insurance and pension schemes LatAm Maintenance course • Short and long term transfers • • personal and professional in- house... experience within the Group, the opportunities offered by Holcim rewarded me with a number of external acknowledgments” General Director of Holcim Nicaragua, “Entrepreneur Woman of the Year for the Construction Industry” and “Extraordinary Services Provider to the Central America Construction Industry”, awarded in 2011 Investor and Analyst Day 2012 © 2012 Holcim Ltd 18 Developing strong professionals... personally and professionally thereby supporting me all the way ” Plant Manager of Holcim Argentina • “During the 19 years of my professional journey , The Group has offered me many development opportunities … with special emphasis in sustainable management and delivering on our promises to all our stakeholders” Commercial Director of Holcim Argentina • “Besides the enriching personal and professional experience... sharing and spread of best practice Sustainably maintaining Holcim s image as a preferred employer who rarely loses talent to the competition or other industries LatAm CAPEX project management course 40th Global CEM manufacturing conference Investor and Analyst Day 2012 © 2012 Holcim Ltd 17 Developing strong professional and local teams • “I am grateful to Holcim because they trusted me and gave me the. .. achieved/expected in rest of the region (different development stages) Investor and Analyst Day 2012 © 2012 Holcim Ltd 34 Customer Excellence – integrated retail market solutions • • • • • • Holcim Apasco Holcim Ecuador Holcim El Salvador Holcim Costa Rica Holcim Nicaragua Holcim Argentina (Mi Casa / Obra) (Disensa) (ConstruFacil) (ConstruRed) (ConstruMas) (Red Minetti) • • • • • ACC and Ambuja Holcim Indonesia Holcim. .. Global Cement Review & internal estimates Investor and Analyst Day 2012 © 2012 Holcim Ltd 11 today led by Brazil and Mexico, … ~ 34 Mio t ~ 10 Mio t ~ 9 Mio t ~ 65 Mio t ~ 13 Mio t Bubbles size according to 2011 national cement demand estimates Investor and Analyst Day 2012 Source: Global Cement Review & internal estimates © 2012 Holcim Ltd 12 which together with the rest of Latin America will drive future... Mio t CEM (17% of Holcim Group) 14.5 Mio t AGG (8% of Holcim Group) 11.0 Mio m3 RMX (23% of Holcim Group) • Net Sales: CHF 3’310 Mio (16% of Holcim Group) • Op EBITDA: CHF 888 Mio (22% of Holcim Group) • EBITDA Margin: 26.8% 20 cement plants 7 grinding stations 25 AGG quarries 220 RMX plants Investor and Analyst Day 2012 © 2012 Holcim Ltd 27 based on a sound strategy 12.2 mtpa Grow with the market where . © 2012 Holcim Ltd Holcim in Latin America Andreas Leu, Member of the Executive Committee © 2012 Holcim Ltd © 2012 Holcim Ltd Agenda Latin America from a Macroeconomic Perspective 3 Holcim. Perspective 3 Holcim in Latin America 16 - A Rich History 16 - A Promising Future 31 Concluding Remarks 40 Investor and Analyst Day 2012 14 © 2012 Holcim Ltd Agenda Latin America from. km 2 Argentina accounts for roughly 13% of Latin America in terms of size and is roughly 16% smaller than India Brazil accounts for roughly 40% of Latin America in terms of size and is