Strength. Performance. Passion. © 2012 Holcim Ltd Holcim in South Asia / ASEAN Paul Hugentobler, Member of the Executive Committee © 2012 Holcim Ltd © 2012 Holcim Ltd Agenda Regional Overview and Trends 2 Business Subregion India 12 Business Subregion Lower Mekong Subregion 19 Business Subregion Indonesia 24 Regional Contribution to the Holcim Leadership Journey 31 Concluding Remarks 45 Investor and Analyst Day 2012 2 © 2012 Holcim Ltd Holcim footprint in South Asia / ASEAN* • Cement sales 42 mt • FTEs 34’014 • Net Sales CHF 3.4 bn • EBITDA CHF 0.9 bn • Cash Flow CHF 0.5 bn Key Figures H1 2012 Source: Corporate Controlling * Association of Southeast Asian Nations Investor and Analyst Day 2012 3 Integrated Plant Grinding Station Under construction Terminal © 2012 Holcim Ltd A relatively young history within Holcim Group 0 10 20 30 40 50 60 70 1912 1920 1930 1940 1950 1960 1970 1980 1990 2010 Qatar Dubai India United Kingdom Norway Ireland Serbia Croatia China New Caledonia Tanzania Sri Lanka Bulgaria Romania Honduras Poland Kosovo Madagascar Mauritius Guinea Angola Iran Malaysia Thailand El Salvador Dom. Republic Indonesia Nicaragua Guatemala French Guyana Azerbaijan Austria Ivory Coast Nigeria Namibia La Réunion Fiji Haiti Carib. Islands Panama Bangladesh Yemen Singapore Vietnam Switzerland France Belgium Netherlands Egypt Lebanon Germany South Africa Canada Brazil USA Mexico Costa Rica Italy Colombia New Zealand Philippines Ecuador Chile Australia Cyprus Venezuela Spain Hungary Czech Republic Greece Slovak Republic Morocco Peru Argentina Russia Europe Africa Middle East Asia Pacific North America Latin America Number of countries Investor and Analyst Day 2012 4 © 2012 Holcim Ltd Solid platform: 53% Holcim CEM volume, 27% of Net Sales, 33% of EBITDA in 2011 OpCo Sales 2011 (t cem /m3 RMX) EBITDA 2011 (CHF) at actual 2011 constant FX rates Holcim Lanka 1.5 mt CHF 21 m Holcim Bangladesh 0.9 mt CHF 8 m Siam City Cement: 11.8 mt / 2.7 mm3 CHF 168 m Ambuja Cement 21.5 mt CHF 382 m Holcim Vietnam 3.7 mt / 0.8 mm3 CHF 47 m Holcim Malaysia 0.7 mt / 0.3 mm3 CHF 14 m Holcim Philippines 5.3 mt / 0.1 mm3 CHF 99 m Holcim Singapore 1.3 mm3 CHF 13 m Holcim Indonesia 8.0 mt / 1.5 mm3 CHF 235 m ACC 24.0 mt / 1.8 mm3 CHF 390 m Source: Corporate Controlling Quoted companies Investor and Analyst Day 2012 5 Integrated Plant Grinding Station Under construction Terminal © 2012 Holcim Ltd Regional network of manufacturing sites and markets Holcim United Arab Emirates Middle East, Holcim Madagascar Holcim Reunion Australia Australia Investor and Analyst Day 2012 6 Integrated Plant Grinding Station Under construction Terminal © 2012 Holcim Ltd Our regional management approach… • Robust business growth strategy for every country; coordinated across region to optimize capacity utilization and flows of clinker and cement • Lean Regional Management structure and strong local management teams • De-centralized but standardized philosophy deploys making and accountability to the local management teams • Focus on functional excellence through faster multiplication of best practices across the region • Focus on people development and capability building Investor and Analyst Day 2012 7 © 2012 Holcim Ltd …is based on a blend of skills and emotional engagement Principles • Ensure leadership development at both the front-line and management level • Deploy large efforts to internationalize talent across the region and the Group • Rely on formal levers to achieve alignment (within OpCo’s and across the region), while focusing on informal levers to mobilize the human capital • Identify the “pride builders” within the organization and leverage their ability to energize people Alignment Motivation Vision Values Strategy Integrating Mechanisms Purpose Pride Commit- ment Top Leaders Team Members Rational Compliance Emotional Commitment Pride Bell Curve Energize Pride Score Indicator (PSI) Pride builders Achieving Alignment and Motivation Investor and Analyst Day 2012 8 © 2012 Holcim Ltd Best practice multiplication to accelerate delivery of bottom line impact OpCo Leadership OpCo Leadership OpCo Leadership RMX, LIP (Large and Infrastructure Projects) Finance OH&S, Geocycle, Procurement, Manufacturing People Exchanges Customer Excellence (CRM, M&S) Cross- Regional Bench- marking and Best Practices Sharing Contribution to Holcim Leadership Journey Investor and Analyst Day 2012 9 © 2012 Holcim Ltd In the past ten years Holcim Group rapidly increased its exposure to South Asia and ASEAN… Indexed development of Holcim Group vs. Holcim South Asia / ASEAN (excl. the Philippines), (2002=100) Cement Capacity Cement Volumes Sold Net Sales Operating EBITDA 2002 2004 2006 2008 2010 2012 1′000 800 600 400 200 0 Holcim South Asia / ASEAN Holcim Group 2002 2004 2006 2008 2010 2012 1′000 800 600 400 200 0 2002 2004 2006 2008 2010 2012 1′000 800 600 400 200 0 2002 2004 2006 2008 2010 2012 1′000 800 600 400 200 0 India acquisitions India acquisitions India acquisitions India acquisitions Source: Corporate Controlling Investor and Analyst Day 2012 10 [...]... local clinker only Capacity - existing players - with local clinker only Main drivers are urbanization (in Java) and infrastructure and housing development (Sumatra, Kalimantan) Source: HIL analysis Investor and Analyst Day 2012 © 2012 Holcim Ltd 27 Holcim Indonesia’s existing footprint is concentrated in Java Existing footprint 2012 Johor Bahru Cement Grinding 1.2 mtpa Ciwandan Cement Grinding 0.7... proceeding according to plan Investor and Analyst Day 2012 © 2012 Holcim Ltd 29 Footprint strategy to improve competitiveness across Indonesia • Enhance cost leadership position in Java through commissioning of first line in Tuban (East Java) end of 2013 • Catch up with fast growing Java and the Islands through second line in Tuban • Expand asset footprint in Southern Sumatra to further optimize cost-to-serve... talent remains an ongoing challenge Training and development of people and leaders to ensure skills at all levels • Top quartile financial performance in the Indian cement industry Investor and Analyst Day 2012 © 2012 Holcim Ltd 18 Agenda Regional Overview and Trends Business Subregion India Business Subregion Lower Mekong Subregion Business Subregion Indonesia Regional Contribution to Holcim Leadership... kiln lines of 4’600 tpd and 8’000 tpd 3.9 mtpa clinker 4.7 mtpa cement Cilacap Plant 1 kiln line of 7’800 tpd 2.4 mtpa clinker 2.9 mtpa cement Tuban Plant (as of 2014) 1 kiln line of 4’000 tpd 1.2 mtpa clinker 1.7 mtpa cement Holcim (Malaysia) Cement plant Grinding plant Investor and Analyst Day 2012 Under construction Cement flow Clinker flow © 2012 Holcim Ltd 28 Tuban – Construction work is proceeding...…paying back in increasing Operating EBITDA contribution Development of operating EBITDA in South Asia / ASEAN (excl the Philippines), (CHF m, at constant exchange rates per 30.6 .2012) 359 7%* 311 311 301 297 298 291 285 350 291 264 249 257 248 229 243 235 237 234 225 234 182 2007 2008 2009 Q1 2010 Q2 Q3 Q4 2011 2012 * CAGR of H1 results Source: Corporate Controlling Investor and Analyst Day 2012 © 2012. .. optimize cost-to-serve position in this key market Investor and Analyst Day 2012 © 2012 Holcim Ltd 30 Agenda Regional Overview and Trends Business Subregion India Business Subregion Lower Mekong Subregion Business Subregion Indonesia Regional Contribution to Holcim Leadership Journey Concluding Remarks Investor and Analyst Day 2012 2 12 19 24 31 45 © 2012 Holcim Ltd 31 Holcim Leadership Journey Regional... 2012 Holcim Ltd 11 Agenda Regional Overview and Trends Business Subregion India Business Subregion Lower Mekong Subregion Business Subregion Indonesia Regional Contribution to Holcim Leadership Journey Concluding Remarks Investor and Analyst Day 2012 2 12 19 24 31 45 © 2012 Holcim Ltd 12 India’s short-term macro environment is challenging… GDP Population • Subdued real GDP growth at 6 - 6.5% in 2012. .. Subregion Business Subregion Indonesia Regional Contribution to Holcim Leadership Journey Concluding Remarks Investor and Analyst Day 2012 2 12 19 24 31 45 © 2012 Holcim Ltd 24 Indonesia is growing faster and gaining confidence Indonesia’s investment ratings upgraded Middle class population is growing fast (millions) 269 1% • Moody’s Baa3 (investment grade) 98 246 -6% • Fitch’s BBB- (investment grade) • Standard... positions in the Lower Mekong Subregion SCCC / HVL Integrated Plant SCCC / HVL Grinding Station SCCC / HVL Terminal Border Sales Cost Competitive Position (Core) Holcim Vietnam We still need to network these regions with an expanded asset footprint Investor and Analyst Day 2012 © 2012 Holcim Ltd 23 Agenda Regional Overview and Trends Business Subregion India Business Subregion Lower Mekong Subregion Business... (2011) • ~23‘400 FTE (2011) ► ► ► ► Integrated Plant Grinding Station Terminal Existing ACL Existing ACC Under construction Investor and Analyst Day 2012 © 2012 Holcim Ltd 17 Strategic priorities for India • “Zero Harm to People” to become a license to lead • Capturing growth potential and sustaining our competitive position • • • Capacity expansion of approx 15 mtpa over the next 5 years Attractive acquisition . Passion. © 2012 Holcim Ltd Holcim in South Asia / ASEAN Paul Hugentobler, Member of the Executive Committee © 2012 Holcim Ltd © 2012 Holcim Ltd Agenda Regional Overview and Trends 2 Business. 9 © 2012 Holcim Ltd In the past ten years Holcim Group rapidly increased its exposure to South Asia and ASEAN Indexed development of Holcim Group vs. Holcim South Asia / ASEAN (excl. the. Corporate Controlling * Association of Southeast Asian Nations Investor and Analyst Day 2012 3 Integrated Plant Grinding Station Under construction Terminal © 2012 Holcim Ltd A relatively