results 2011 and outlook presentation of february 29 2012 holcim ltd

Results 2011 and Outlook First cement plant in Holderbank (Switzerland) © 2012 Holcim Ltd/Switzerland Presentation of February 29, 2012 The spoken word prevails. Holcim at a glance  Growth in most of the emerging markets, but subdued building activity in many mature markets  Higher sales volumes in cement, aggregates and ready-mix concrete with significant volume increases and higher operating EBITDA in the 4 th quarter  Increasing costs for raw materials, energy and transport as well as the strong Swiss franc impacted operating result  Holcim achieved higher turnover and stable operating EBITDA like-for-like  Non-cash impairments impacted net income  Proposal for a cash payout from capital reserves of CHF 1.00 per registered share (2010: 1.50) 1 © 2012Holcim Ltd/Switzerland Financialresults2011 1) 2011 was a year in which the global economy moved at two different speeds. Whereas the emergin g markets of Asia and Latin America remained on a solid growth trajectory, the construction economy in t he industrialized nations was subdued. Holcim increased sales of cement, aggregates and ready-mix concrete, and in all four large Group regions. The biggest increase was in aggregates. Holcim reported higher vo lumes of cement and aggregates above all in Latin America and Asia. The rise in sales of ready-mix concrete in North America was particularly strong as a result of acquisitions. Performance was very positive in the fourth quarter with respect to both volumes and the operating result. In many markets, strong competition me ant that inflation-related cost increases, in particular for raw materials, energy and transport, could not yet be fully passed on to selling prices. A further factor was the strong Swiss franc, which also had a negative impact on the consolidated financial statements. On a like-for-like basis Holcim achieved higher turnover, with operating EBITDA at last year's level. And in the fourth quarter of 2011, like-for-like operating EBITDA was up by as much as 15 percent year-on-year. However, the non-cash impairments announced back in January – and Thomas Aebischer will go into more detail on these in his commentary – had the effect of reducing Group net income by 775 million francs. Nonetheless, the Board of Directors is proposing a c ash distribution of one franc per registered share from the capital contribution reserves. Positive volume development in Europe  Debt crisis dampened economic recovery in the building industry  Higher sales of cement, aggregates and ready-mix concrete  Restructuring and plant closures in Italy, Spain and Eastern Europe  Start-up of the Shurovo plant in Russia and first clinker production at the Garadagh plant in Azerbaijan  Strong Swiss franc, higher costs and lower receipts from the sale of CO2 certificates impacted result  Non-cash impairments in Spain and Eastern Europe 2 © 2012Holcim Ltd/Switzerland Financialresults2011 2) In 2011, the economies of the Western European countries in which Holcim is present performed reasonably, with the exception of Italy and Spain. Within the EU, however, the debt crisis weighed on th e economic recovery as the year progressed, unsettling many investors. In Eastern Europe, many governments were forced to resort to drastic cost-cutting measures. Economic recovery remained strong in Switzerland, Russia and Azerbaijan. Holcim sold more cement, aggregates and ready-mix concrete in Group region Europe. Only in the area of asphalt did we experience a decline. In order to align Group capacit y with anticipated demand, Holcim took the decision to discontinue certain operations – in Italy and Spain in particular, but also in Eastern Europe – in all segments. This was in stark contrast to the growth market s: One of the most modern cement plants commenced operations in Shuruvo, in Russia, primarily servin g the booming market of Moscow. Shortly before the end of the year, Holcim also produced the first clinker at a new kiln line at the Garadagh plant in Azerbaijan. The strong Swiss franc, higher costs for energy and transport, lower receipts from the sale of CO2 emission certificates, and the difficulty of adjusting prices to cost inflation in a difficult competitive environment all had an impact on the operating result. In addition, the non-cash impairments affecting fixed assets and goodwill in Spain and Eastern Europe also weighed on the Group result. 2 Slight recovery tendencies in North America  Slightly better economic performance in the US and moderate development in Canada  Higher sales volumes in all segments – supported by acquisitions in the field of aggregates and ready-mix concrete  Strong Swiss franc and higher production and distribution costs led to a lower operating EBITDA  The Catskill and Artesia plants were permanently closed in the 4 th quarter, resulting in non-cash impairments 3 © 2012Holcim Ltd/Switzerland Financialresults2011 3) Although the US economy grew slightly, particularly in the second half of 2011, the construction eco nomy did not really get going due to spending cuts in the public sector. In Canada, the economy weakened a bit following a strong previous year; in this country too a number of cement-intensive infrastructure projects were postponed. Holcim US increased its cement sales, with monthly deliveries in the second half of t he year exceeding the million-tonne mark on two occasions. Not since October 2008 had this level of sales been achieved. Holcim Canada recorded lower exports to the north-east of the US, which accounts for the decline in cement deliveries. Aggregate Industries US posted a significant volume increase in aggrega tes and ready-mix concrete, which is largely attributable to the full takeover of Lattimore Materials in Texas in the first quarter of 2011, and the acquisition of Ennstone in Virginia in October of the year under review. Sa les of asphalt rose slightly despite a decline in street repair activity. Holcim Canada was able to significantly increase its sales of aggregates in the second half of the year, with ready-mix concrete sales close to the previous year's level. Operating EBITDA for Group region North America declined significantly. This w as attributable to negative currency effects, continued weak demand, and higher production and distributi on costs that could not be fully offset despite slight price adjustments. As demand for construction materia ls in the US will only recover slowly, non-cash impairments on fixed assets were booked in the fourth quarter of 2011. These relate to the permanent closure of the Catskill and Artesia plants of Holcim US. Solid economic development in Latin America  Lively construction activity in most countries and increased cement demand  Higher sales volumes in all segments and a strong rise in the aggregates segment  In Ecuador, capacity expansion was concluded and decision taken to build a new kiln line in Brazil  Despite higher costs for energy and transport, operating EBITDA increased like-for-like 4 © 2012Holcim Ltd/Switzerland Financialresults2011 4) The modest economic recovery continued in Mexico and Central America. Ecuador, Colombia and Brazil benefited from improved access to foreign financing sources and from stable oil and commodity prices . Economic conditions also remained sound in Argentina and Chile. Sales volumes increased in all seg ments in Latin America. The biggest increase was in aggregates. Capacity was substantially increased at Hol cim Ecuador's Guyaquil plant in 2011. This will enable the company to participate more in the country's gro wth. Capacity is also being expanded in the booming market in Brazil. By 2014, Holcim will have built a ne w kiln line at the Barroso plant, which will increase the capacity of this company by 2.6 million tonnes of cem ent to around 8 million tonnes. Operating EBITDA declined in Group region Latin America. Group companies in El Salvador, Colombia and Chile recorded better results, but sales prices in some markets could not be adjusted to the rise in costs. The strong Swiss franc also made itself felt. Group region Latin America d id register organic growth on operating EBITDA level. 3 Stable markets in Africa Middle East  Positive economic development in Morocco, Lebanon, West Africa and in the Middle East  Decreasing shipments of aggregates, but increased sales volumes of ready-mix concrete  Project for doubling clinker capacity at the Fès plant continued as scheduled  Operating EBITDA almost reached previous year’s level like-for-like 5 © 2012Holcim Ltd/Switzerland Financialresults2011 5) The construction sector developed very positively in the markets relevant to Holcim. Cement and aggregate volumes declined, however. This is attributable to increased competition in Morocco, where new players have joined the market. By contrast, sales of ready-mix concrete increased. The project to double clinker capacity at the Fès plant continues to progress according to schedule. This facility will commenc e production in the second half of 2012. The operating EBITDA of Group region Africa Middle East declin ed, primarily as a result of the currency impact. In Morocco, the operating result was adversely affected by l ower volumes, higher fuel costs, and strong pressure on prices. In order to keep pace with the growth of the market, the Lebanese Chekka plant had to purchase expensive clinker on specific occasions. At least s elling prices could be increased slightly. The Group companies in the Indian Ocean only just failed to match t he previous year's result. On a like-for-like basis, operating EBITDA almost reached the level of the previous year. Dynamic building activity in Asia Pacific  Asia predominantly remained on a growth path and in Oceania only the mining sector is enjoying a good workload  Floods and an earthquake impacted building activity in Australia, Thailand and New Zealand  Higher sales volumes in all segments  Selective capacity expansion  Despite cost pressure, operating EBITDA increased significantly like-for-like 6 © 2012Holcim Ltd/Switzerland Financialresults2011 6) Economic growth was strong in the Group region Asia Pacific. Thailand's economy stalled temporaril y following the serious floods in the fall. In Oceania, the year kicked off with severe flooding in eastern Australia, while the earthquake in New Zealand also hindered the construction sector for a while. In Indi a, ACC and Ambuja Cements sold significantly more cement thanks to capacity increases. Siam City Ce ment in Thailand supplied rather more cement domestically, and deliveries of aggregates and ready-mix concrete were up sharply. Holcim Vietnam won a number of key orders in the commercial and industrial sector. I n the Philippines, cement sales declined due to weak infrastructure construction, and Holcim Indonesia poste d robust sales increases in all segments thanks to a booming construction sector. The project for a ceme nt plant in Tuban on the main island of Java progressed according to schedule, and will enter production i n 2013. Cement Australia sold rather less cement, while Holcim Australia also suffered from poor weathe r conditions, but managed to increase its sales of aggregates. Ready-mix concrete sales only just fell short of the previous year’s level. Operating EBITDA for the Group region Asia-Pacific declined due to inflation- related cost pressure, which could not yet be passed on to prices everywhere. On a like-for-like basis, however, significant growth was recorded. 4 Key financial figures – Q4 2011 Million CHF Q4 +/- (ifnototherwisestated) 2010 2011 LFL CIS FX Total Sales volumes - Cement (mt) 33.9 36.2 6.3% 0.4% 6.7% - Aggregates (mt) 39.1 42.6 7.2% 1.8% 8.9% - Ready-mix (mm 3 ) 11.5 12.2 3.0% 3.6% 6.5% Net sales 5,085 5,284 13.1% 0.8% -10.0% 3.9% Operating EBITDA 936 987 15.5% 0.3% -10.5% 5.3% Operating profit 441 180 -55.6% -1.8% -1.9% -59.2% Net income 398 -322 -197.6% -1.1% 17.8% -180.8% Net income attr. to Holcim shareholders 307 -438 -270.4% -1.4% 28.8% -242.9% Cash flow 1,606 1,823 28.4% 0.3% -15.2% 13.5% 7 © 2012Holcim Ltd/Switzerland Financialresults2011 7) Let us begin with the review of the key financial figures of the fourth quarter before turning to the full -year 2011 results. Cement volumes increased by 6.7 percent, driven mainly by the Group regions Asia Pacif ic and, to a lesser extent, Latin America, North America and Europe. Sales volumes in Group region Afri ca Middle East declined slightly. Aggregates sales volumes increased by 8.9 pecent, or 7.2 percent on a li ke- for-like base. This result was mainly driven by Group region Europe, Latin America and Asia Pacific. Ready- mix concrete recorded a 6.5 percent volume growth of which 3.6 percent are due to acquisitions in Eur ope and North America. Net sales increased by 3.9 percent to 5.3 billion Swiss francs, or a strong 13.1 per cent on a like-for-like base. This result is a combination of a good overall volume growth and improving pricing levels achieved towards the end of 2011. The increasingly positive impact from pricing together with th e good volume growth and some 32 million Swiss francs higher sales from CO2 trading, more than offse t the increased costs. As a result the like-for-like operating EBITDA improved by an impressive 15.5 percent. For the first time since the first quarter 2010, the operating EBITDA margin increased on a quarterly like- for-like base. As already previously announced, the impairment charges and provisions of 775 million Swiss fr ancs after tax booked in the quarter under review negatively impacted net income attributable to Holcim shareholders, thus turning it to a negative 438 million Swiss francs. Adjusting for this 775 million Swiss francs, the net income attributable to Holcim shareholders would have reached 337 million Swiss franc s, an increase of 9.8 percent. Key financial figures – Full year 2011 Million CHF (ifnototherwisestated) 2009 2010 2011 +/- LFL CIS FX Total Sales volumes - Cement (mt) 131.9 136.7 144.3 5.5% 0.1% 5.6% - Aggregates (mt) 143.4 157.9 173.0 5.6% 4.0% 9.6% - Ready-mix (mm 3 ) 41.8 45.9 48.4 2.2% 3.2% 5.4% Net sales 21,132 21,653 20,744 7.5% 0.8% -12.5% -4.2% Operating EBITDA 4,630 4,513 3,958 -0.2% 0.2% -12.3% -12.3% Operating profit 2,781 2,619 1,933 -14.7% -0.5% -11.0% -26.2% Net income 1,958 1,621 682 -52.3% -0.4% -5.2% -57.9% Net income attr. to Holcim shareholders 1,471 1,182 275 -74.9% -0.5% -1.3% -76.7% Cash flow 3,888 3,659 2,753 -14.0% -0.3% -10.5% -24.8% EPS CHF 1 4.93 3.69 0.86 -76.7% Dividend / payout per share CHF 1.50 1.50 1.00 2 -33.3% 1 Calculatedontheweightedaveragenumberofsharesoutstanding 2 ProposedbytheBoardofDirectorsforapayoutfromcapitalcontributionreserves © 2012Holcim Ltd/Switzerland 8 Financialresults2011 8) Let us now cover the key financial figures for the full year 2011. Sales volumes of cement increased by around 5.6 percent, supported by positive developments in all Group regions but Africa Middle East. Aggregates sales volumes increased by a strong 9.6 percent with high single-digit to double-digit growth rates in most regions except Africa Middle East. The result was also supported by a number of smaller acquisitions such as Lattimore Materials Inc. in the United States of America and Est Granulats / Aube Bétons in France. Ready-mix concrete volumes increased by some 5.4 percent of which some 3.2 percent being contributed by the aforementioned smaller acquisitions. All regions contributed to this volume inc rease, albeit at varying levels. The overall volume increases benefitted on the one hand from an improved de mand in a number of developed markets, while on the other hand from continued building activity in many emerging markets. Net sales amounted to 20.7 billion Swiss francs, down 4.2 percent compared to the previous year predominantly due to the negative currency impact with the very strong Swiss franc contributing a negative 12.5 percent to the top line development. On a like-for-like base sales increased by a good 7.5 percent. The operating EBITDA declined by some 12.3 percent just falling short of 4 billion S wiss francs. On a like-for-like base, the operating EBITDA only decreased by 0.2 percent, thus reflecting the good volume and pricing momentum recorded during the second half of 2011 that nearly managed to offset the negative impact of higher raw material, energy and distribution costs on the one hand, and lower inco me 5 from CO2 trading on the other. Net income attributable to shareholders of Holcim Ltd amounted to 275 million Swiss francs, down 76.7 percent year-on-year. This decline was strongly driven by the announced impairment charges in Spain, Eastern Europe and the US as well as by the AfriSam investment. Reconciliation of impairment charges on results Million CHF Net sales 21,653 20,744 One-off Pro forma items vs. 2010 20,744 -4.2% Operating EBITDA 4,513 3,958 17 1 3,975 -11.9% Depreciation -1,894 -2,025 359 2 -1,666 -12.0% Operating profit 2,619 1,933 375 2,308 -11.9% Financial expenses -897 -1,210 415 3 -795 -11.4% Income taxes -615 -449 15 4 -464 -24.6% Net income 1,621 682 775 1,457 -10.1% Net income attr. to Holcim shareholders 1,182 275 775 1,050 -11.2% EPS CHF 5 3.69 0.86 3.28 -11.1% 1 EnvironmentalprovisionsrelatedtotheclosuresinNorthAmerica 2 ImpairmentchargesofwhichCHF327millionrelatedtoEuropeandCHF32millionrelatedtoNorthAmerica 3 ImpairmentandreclassificationofforeignexchangelossesrelatedtoAfriSam 4 Taxeffectrelatedtoimpairmentcharges 5 Calculatedontheweightedaveragenumberofsharesoutstanding © 2012Holcim Ltd/Switzerland 9 Financialresults2011 9) Before giving you a more detailed picture of our 2011 results, I would like to highlight an important p oint that was already mentioned but needs to be further elaborated. On January 16, 2012, impairment char ges amounting to 775 million Swiss francs after tax were announced and recognized in the Group’s financi al statements of the fourth quarter 2011 in the amount of 790 million Swiss francs before tax. On a pre operating EBITDA level provisions of 17 million Swiss francs relating to the plant closures in the US we re booked. The depreciation charge of just above 2 billion Swiss francs was negatively impacted by impai rment charges of 359 million Swiss francs; stemming from Spain with 237 million Swiss francs, with the remai nder split among Hungary, the Czech Republic and 32 million Swiss francs being related to the United State s of America. Adjusting for these impairments and provisions, the operating profit would have reached 2.3 billion Swiss francs, a decline of 11.9 percent compared to the previous year. The impairment on the AfriSam investment amounted to 415 million Swiss francs, therefore resulting in an increase of the financial exp enses to 1.2 billion. The tax effect of these provisions and impairments amounted to 15 million Swiss francs. While the reported net income attributable to Holcim Ltd shareholders amounted to 275 million Swiss francs, representing a decline of 76.7 percent, the result excluding for the aforementioned amount would have reached more than 1 billion Swiss francs, declining some 11.2 percent compared to the previous year. Major changes in the scope of consolidation Effective as at + Est Granulats, Aube Bétons and Hupfer AG (Moldau) January 1, 2011 + Lattimore Materials Inc. March 4, 2011 +/– Various smaller companies © 2012Holcim Ltd/Switzerland 10 Financialresults2011 2011 6 Cement – Sales volumes by re gion Million t Total Group 2009 131.9 2010 136.7 2011 144.3 ∆ 2010/2011 LFL Change in Total © 2012Holcim Ltd/Switzerland structure Europe 1.9% 0.3% 2.2% North America 2.9% 0.0% 2.9% Latin America 6.7% 0.0% 6.7% Africa Middle East -2.1% 0.0% -2.1% Asia Pacific 5.8% 0.1% 5.9% Total 5.5% 0.1% 5.6% 11 Financialresults2011 Aggregates – Sales volumes by region Million t Total Group 2009 143.4 2010 157.9 2011 173.0 ∆ 2010/2011 LFL Change in Total © 2012Holcim Ltd/Switzerland structure Europe 3.3% 3.7% 7.0% North America 2.4% 8.7% 11.0% Latin America 18.7% 0.0% 18.7% Africa Middle East -7.0% 0.0% -7.0% Asia Pacific 12.6% 0.0% 12.6% Total 5.6% 4.0% 9.6% 12 Financialresults2011 Ready-mix concrete and asphalt – Sales volumes by region Million m 3 /t Total Ready-mix 2009 41.8 2010 45.9 2011 48.4 ∆ 2010/2011 * LFL Change in s tructure Total Total Asphalt 2009 11.0 2010 10.6 2011 10.3 * Ready-mixconcreteonly © 2012Holcim Ltd/Switzerland Exchange rates Europe 0.3% 0.3% 0.5% North America 0.2% 25.3% 25.4% Latin America 5.2% 0.0% 5.2% Africa Middle East 4.0% 0.0% 4.0% Asia Pacific 2.8% 0.0% 2.8% Total 2.2% 3.2% 5.4% 13 Financialresults2011 Statement of income 2010 2011 +/- 1 EUR 1.51 1.38 1.24 -10.1% 1 GBP 1.70 1.61 1.42 -11.8% 1 USD 1.09 1.04 0.89 -14.4% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 0.98 1.00 0.87 -13.0% 1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 0.95 1.00 0.89 -11.0% Statement of financial position +/- 1 EUR 1.49 1.25 1.22 -2.4% 1 GBP 1.66 1.45 1.45 0.0% 1 USD 1.03 0.94 0.94 0.0% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 1.06 1.00 0.90 -10.0% 1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 1.03 1.00 0.93 -7.0% 1 Weightedbynetsalesfullyear2011 © 2012Holcim Ltd/Switzerland 14 Financialresults2011 7 Foreign exchange rate impact Million CHF Netsalesimpact OperatingEBIT DAimpact Salesimpact EBITDAimpact 86 139 1.8% 2.5% 1.7% 40 2.9% - 1 7 9 - 3 . 1 % -32 -2.2% -42 -4.1% -228 -4.3% -73 -8.0% -181 -14.2% -14.7% -98 -10.5% -435 -9.2% -508 -10.0% -916 -854 -14.9% -15.1% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 15 © 2012Holcim Ltd/Switzerland Net sales Million CHF Financialresults2011 Like-for-Like (LFL) -2,510 -10.0% -444 -2.1% 1,632 7.5% Change in structure 195 0.8% 1,147 5.4% 171 0.8% Forex movements -1,710 -6.8% -182 -0.8% -2,712 -12.5% Total change -4,025 -16.0% 521 2.5% -909 -4.2% 16 © 2012Holcim Ltd/Switzerland Financialresults2011 Net sales by region average exchange rates in CHF exchange rates in CHF 31/12/09 31/12/10 13 -203 Million CHF 2009 21,132 2010 21,653 2011 20,744 ∆ 2010/2011 LFL Change in Currency Total structure Europe 3.1% 0.4% -9.9% -6.3% North America 1.3% 4.7% -13.9% -7.8% Latin America 11.1% -0.4% -14.5% -3.8% Africa Middle East -0.3% 0.0% -12.4% -12.6% Asia Pacific 14.2% 0.0% -13.7% 0.5% Total 7.5% 0.8% -12.5% -4.2% 17 © 2012Holcim Ltd/Switzerland Financialresults2011 17) Net sales amounted to 20.7 billion Swiss francs, representing an overall decrease of 4.2 percent. Excluding changes in the scope of consolidation amounting to 0.8 percent and foreign exchange move ments contributing a negative 12.5 percent, the like-for-like change amounted to an increase of 7.5 percent. The main driver of the change in structure was the already mentioned acquisition of Lattimore Materials Inc. in Group region North America and some smaller acquisitions in Group region Europe. On a like-for-like base Group sales benefitted from good to very good cement and aggregates volume growth in Group region Latin America and Asia Pacific, and solid growth in ready-mix concrete volumes in Group region Latin America and Africa Middle East. On a like-for-like base pricing in cement benefitted from solid increases in Group region Latin America and above all Asia Pacific and to a somewhat lesser extent Europe. Aggregates p ricing on a like-for-like base was mainly driven by Group region North America, Latin America and Asia Pacific. 8 Net sales by region Net sales 2011 Europe 28.6% North America 14.0% Asia Pacific 37.4% Latin Americ a 15.5% Africa Middle East 4.5% © 2012Holcim Ltd/Switzerland Operating EBITDA 18 Financialresults2011 Million CHF Margin [...]... meeting of shareholders May 9, 2012 © 201 2Holcim Ltd/ Switzerland Results for the first quarter 2012 August 15, 2012 Half-year results for 2012 September 3/4, 2012 Investor &Analyst Day 2012 November 7, 2012 Press and analyst conference for the third quarter 2012 43 Financialresults2011 Asia Pacific – mature and emerging market highlights +/- Million CHF LFL CIS FX Total Cement volumes (mt) - of which... 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors August 15, 2012 General meeting of shareholders Results for the first quarter 2012 Half-year results for 2012 September 3/4, 2012 Investor &Analyst Day 2012 Press and analyst conference for the third quarter 2012 Mailing list: www .holcim. com/subscribe 43 © 201 2Holcim Ltd/ Switzerland Financialresults2011 17 Disclaimer Cautionary statement... investments will be cautious Holcim expects that the Group will achieve organic growth in terms of operating EBITDA 33 © 201 2Holcim Ltd/ Switzerland Financialresults2011 33) Holcim expects demand for building material to rise in emerging markets in Latin America and Asia , as well as in Russia and Azerbaijan in 2012 A slight improvement for North America can also be expecte d In Europe, demand should remain stable,... Long-term corporate credit rating (February 2012) 2009 Standard & Poor's Fitch Moody's 2010 BBB BBB Baa2 2011 Current BBB BBB Baa2 BBB BBB Baa2 BBB BBB Baa2 37 Financialresults2011 © 201 2Holcim Ltd/ Switzerland Cement – Price/volume variances per region Domestic clinker and cement volumes +/- 2010 /2011 Domestic cement prices +/- 2010 /2011 * Europe 1 Belgium France Germany 2 Switzerland Italy Hungary Czech Republic... development  Upside potential 29 © 201 2Holcim Ltd/ Switzerland Financialresults2011 29) I started as CEO on February 1 and enjoyed an extremely well-organized transition I wish to thank Rolf Soiron, Markus Akermann and the Holcim EXCO members for this, as well as all those who contribute d to this exceptional induction This excellent transition allowed me to meet with customers, many of our le aders, our employees,... -0.1% -0.2% -13.5% -13.8% -2.4% 0.0% -11.6% -14.0% 10.3% 0.0% -14.1% -3.8% -14.7% -0.5% -11.0% -26.2% 22 © 201 2Holcim Ltd/ Switzerland Net income Million CHF Financialresults2011 -12.0% -17.5% -17.2% -19.6% -76.7% -57.9% 23 © 201 2Holcim Ltd/ Switzerland Financialresults2011 23) Below operating profit, other income amounted to 69 million Swiss francs, up 61 million Swiss franc s The contribution from associated... rate of inflation  Average interest rate slightly above the 4.4 percent level recorded in 2011  Long term expected tax rate of 27 percent  Maintenance capex of CHF 0.9 billion net  Expansion capex of CHF 1.1 billion  Initiatives to further reduce costs 34 Financialresults2011 © 201 2Holcim Ltd/ Switzerland Europe – mature and emerging market highlights Million CHF 2010 (ifnototherwisestated) +/- 2011. .. thank the communities and neighbors at production sites 28 © 201 2Holcim Ltd/ Switzerland Financialresults2011 28) The Aargauische Portland Cement Factory was founded in Holderbank, in the Canton of Aargau, o n February 15, 1912 Within a year, this plant, state -of- the-art facility for its era, commenced operations producing 90,000 tonnes annually Over the next hundred years, one of the world's leading... leaders and promote best practice exchange Focus on talent management Engage all employees to further develop skills to support strategic goals and commercial & operational excellence   31 © 201 2Holcim Ltd/ Switzerland Financialresults2011 31) Last but not least, in this first review of my areas of focus, I want to mention the Group’s employees and leaders We are a company that cares for its people, and. .. Notyetpublishedlocally © 201 2Holcim Ltd/ Switzerland Financialresults2011 Contact information and event cale ndar Contact information Corporate Communications Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications @holcim. com Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors Mailing list: www .holcim. com/subscribe Event calendar April 17, 2012 General . Results 2011 and Outlook First cement plant in Holderbank (Switzerland) © 2012 Holcim Ltd/ Switzerland Presentation of February 29, 2012 The spoken word prevails. Holcim at a. -26.2% © 201 2Holcim Ltd/ Switzerland Operating profit by region Million CHF 21 Financialresults2011 2009 2’781 1 2010 2’619 © 201 2Holcim Ltd/ Switzerland Net income Million CHF 2011 1’933 ∆. companies © 201 2Holcim Ltd/ Switzerland 10 Financialresults2011 2011 6 Cement – Sales volumes by re gion Million t Total Group 2009 131.9 2010 136.7 2011 144.3 ∆ 2010 /2011 LFL Change in Total © 2012Holcim