Holcim – Positioned for Sustainable Growth Theophil H. Schlatter – CFO UBS – Global Basic Materials Conference June 9, 2010 Phu My Bridge, Vietnam © Holcim Ltd 2010 1 Strategy – sustainable development 2 Positioning – capture future growth 3 Conclusion © Holcim Ltd 2010 UBS – Global Basic Materials Conference 2 June 9, 2010 Holcim's success in strategy execution – Local management leveraged by global standards Product segments 2009 Net sales per segment 2009 Cement Clinker • 202.9 million tonnes production capacity • 154 cement and grinding plants • Sales: 131.9 million Net sales CHF 21.1 billion 59% Aggregates tonnes 32% 9% • 485 aggregates plants • Sales: 143.4 million Op. EBITDA per segment 2009 Op. EBITDA CHF 4.6 billion Other construction tonnes 6% 85% materials & services • 1,457 RMX plants • 114 asphalt plants • Sales of ready-mix concrete: 41.8 million m 3 • Sales of asphalt: 11.0 million tonnes 9% Cement Aggregates Other Construction Materials and Services 3 © Holcim Ltd 2010 UBS – Global Basic Materials Conference June 9, 2010 Holcim's Strategy – Base for value creation and sustainable growth Goal Strateg y Creatio n of Value Product Focus Geographic Diversification Local Management Global Standards Mindsets Sustainable Environmental Better Cost Permanent Marketing Human Resources Corporate Social Performance Management Innovation Excellence Responsibility Base © Holcim Ltd 2010 People Triple Bottom Line UBS – Global Basic Materials Conference 4 June 9, 2010 Concept of Triple Bottom Line World Business Council for Sustainable Development (WBCSD) Triple bottom line means optimization of financial, ecological and social performance. This translates into • Climate and energy • Sustainable products and construction UN Global Compact (UNGC) • Resources conservation • Occupational health & safety (OH&S) • Stakeholder engagement International Uni on for Conservation of Nature (IUCN) © Holcim Ltd 2010 • Corporate Governance • Financial Performance UBS – Global B asic Materials C onference 5 June 9, 2010 Climate and energy – sustainable performance Replacing 4 old plants by one new state of the art production facility: • Thermal energy: -43% • Power consumption: -30% • CO 2 emissions: -20% • NO x emissions: -66% • SO 2 emissions: -92% US Cement plant St. Genevieve (4 mtpa) operational since August 2009 6 © Holcim Ltd 2010 UBS – Global Basic Materials Conference June 9, 2010 Agenda 1 Strategy – sustainable development 2 Positioning – capture future growth 3 Conclusion © Holcim Ltd 2010 UBS – Global Basic Materials Conference 7 June 9, 2010 Global construction market: ~13% of global GDP Largest construction markets 2009E USD bn % USA China Japan Germany Spain France Italy South Korea India UK Canada Brazil Australia Russia Indonesi a Others Total 1,313 17% 1,035 14% 592 8% 303 4% 292 4% 271 4% 262 3% 248 3% 247 3% 243 3% 218 3% 173 2% 157 2% 154 2% 138 2% 1,899 25% 7,542 100% Global demand • Cement: ~ 3bn t • Aggregates: ~20bn t • Read-mix concrete: ~1.6bn m3 Cement, aggregates and ready-mix concrete markets account for ~10% of global construction Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 2009, JPM Full Sector Note 2009, Global Cement Statistics, 18 year Database 1990 – 2008, Holcim Estimates 8 © Holcim Ltd 2010 UBS – Global Basic Materials Conference June 9, 2010 Continuous growth in cement demand even in recessionary environments Global cement demand 1970 to 2009E (in million tonnes) 3500 [...]... 8.2% 8.8% 9. 0% Source: Nominal GDP per Capita (at PPP) in USD: International Monetary Fund - World Economic Outlook Database (April 2010) , Holcim estimates © Holcim Ltd 2010 UBS – Global Basic Materials Conference Agenda 1 Strategy – sustainable development 2 Positioning – capture future growth 13 June 9, 2010 3 Conclusion 14 UBS – Global Basic Materials Conference © Holcim Ltd 2010 June 9, 2010 Conclusions... while the need for infrastructure in mature markets will support demand • Holcim is well positioned for sustainable growth! Strength Performance Passion 15 © Holcim Ltd 2010 Buildin UBS – Global Basic Materials Conference June 9, 2010 foundations for society's future SAC's New Monte Rosa Hut, Switzerland © Holcim Ltd 2010 Disclaimer Cautionary statement regarding forward-looking statements This presentation... Global Basic Materials Conference June 9, 2010 Holcim generates its EBITDA in countries with GDP growth above average GDP Growth [%] (excl China) 20 09 World Mature Market Emerging Market 2010 2011 3 .9% -1.1% 2.7% -2.3% 0.6% 2012 4.7% 3.5% 5.4% GDP Growth weighted with Holcim op EBITDA 20 09 per country [%] (excl China) 20 09 Holcim 5.2% 3 .9% 6.3% 6.8% op EBITDA split: Holcim World • Mature: 30% Mature... Materials Conference June 9, 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 Press and 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...Oil crisis 197 3 Financial crisis 199 0 Financial crisis 198 1 Asian crisis 199 7 urban 3000 rural Recession 2002 Financial crisis 2008 2500 2000 6.4 1500 5.0 1000 2 .9 2.4 500 3.2 3.3 2.8 1.3 0 197 0 CAGR 198 0 4.2% 199 0 2.7% 2000 3.6% 05 08 2010 7.4% 5.8% 9 Source: Cembureau, Global Cement Statistics, 18 year Database 199 0 – 2008, Holcim estimates © Holcim Ltd 2010 UBS – Global Basic Materials Conference. .. China USA India Japan South Korea Germany Spain Russia UK Canada France Italy Indonesia Brazil Australia with Holcim presence 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 higher ranking lower ranking Holcim is very well positioned to capture growth opportunities Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 20 09 © Holcim Ltd 2010 UBS – Global Basic Materials Conference. .. 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 UBS – Global Basic Materials Conference 18 © Holcim Ltd 2010 June 9, 2010 ... March 20 09 – in billion © Holcim Ltd 2010 UBS – Global Basic Materials Conference June 9, 2010 0 Global construction outlook 2000 2030 2050 197 0 Largest construction markets 2009E USA China Japan Germany Spain France 197 0 2000 2030 2050 Largest construction markets 2020E It a l y S o ut h Ko re a India UK Canada Brazil Australia Russia Indonesia Global ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Global. .. no forecast Africa Middle East Net sales in % of Group: ~6% op EBITDA: ~8% dd …which account for ~50% of net sales and ~70% of op EBITDA Reported consolidated cement capacities, net sales and op EBITDA as 20 09, China not consolidated Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 20 09, Holcim Estimates 12 © Holcim Ltd 2010 UBS – Global Basic Materials Conference. .. from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially 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 17 © Holcim Ltd 2010 UBS – Global Basic Materials . Holcim – Positioned for Sustainable Growth Theophil H. Schlatter – CFO UBS – Global Basic Materials Conference June 9, 2010 Phu My Bridge, Vietnam © Holcim Ltd 2010 1 Strategy – sustainable . demand • Holcim is well positioned for sustainable growth! Strength. Performance. Passion. 15 © Holcim Ltd 2010 UBS – Global Basic Materials Conference June 9, 2010 Buildin foundations for society's . Perspectives, Oxford Economics, November 20 09, Holcim Estimates 12 © Holcim Ltd 2010 UBS – Global Basic Materials Conference June 9, 2010 Holcim generates its EBITDA in countries with GDP growth above