Presentation of November 7, 2012 The spoken word prevails. Strength. Performance. Passion. 3 rd quarter results 2012 and outlook 2 2) Holcim sold more cement than in the first nine months of last year. This confirms that the unique geographic diversification of the Group is supporting results. In the aggregates segment and to a lesser extent in the ready-mix concrete business, volumes declined. This is primarily the result of the crisis in Europe and the weaker demand for these construction materials in Oceania. Positive is the fact that over the course of the year Holcim was increasingly able to pass on cost increases to prices. Compared with the volumes and net sales, financial results developed over proportionately positive and the Group also achieved slightly better margins. Furthermore, I would like to highlight the solid cash flow from operating activities and the better gearing compared with year-end 2011. The Holcim Leadership Journey, our Group-wide program introduced in May, is progressing positively. Regions and Group companies have already started to implement measures and organizational adjustments at Group level have been made. These include the introduction of a leaner management structure for Europe, and the creation of a Project Management Office to monitor the progress of the Holcim Leadership Journey. Guidelines to measure the operational and financial progress of the program have also been put in place. The detailed financial impact of the entire Holcim Leadership Journey will be released together with the year-end results 2012. The like-for-like operating EBITDA compared with last year increased by 6.4 percent. This includes restructuring costs of 58 million Swiss francs linked to the Holcim Leadership Journey. Adjusted for the costs and eliminating the favorable impact of CO2 sales this year, the like-for-like operating EBITDA increased by 8 percent. 3) Furthermore, Asia's construction industry benefitted from robust demand, primarily in the big markets. Major private and public construction projects supported our sales volumes. Due to the combination of innovative products and related services, Holcim is a preferred supplier on many big construction sites. However, construction activity was subdued in the Pacific rim, where demand in the non-resource regions remained weak. In the Group region Asia Pacific Holcim sold more cement than last year, primarily supported by rising cement sales volumes in India, the Philippines, Indonesia and Thailand. Due to the excellent business climate in Singapore, deliveries of ready-mix concrete did not decline significantly in this Group region. The drop in aggregates shipments is a consequence of the subdued construction activity in the Pacific region. The construction of the new cement plant in Tuban in East Java made considerable headway. The facilities will commence cement production at the end of 2013 and resolve current capacity bottlenecks. In view of the positive development of the Indonesian market, Holcim has approved the construction of a second identical kiln line in Tuban which will go into operation by end of 2014. Despite heavy competitive pressure, Holcim was able to pass on inflationary-induced cost increases to prices and to generate better margins. In absolute terms, Ambuja Cements achieved the largest improvement in results, followed by Holcim Indonesia, Holcim Australia and Holcim Philippines. © 2012 Holcim Ltd • Rising cement deliveries in the first nine months of 2012 • Price increases support earnings, slightly better margins • Higher operating EBITDA • Solid cash flow from operating activities • Net income significantly higher than last year • Holcim Leadership Journey progresses according to plan Holcim at a glance 2 Group January- Sept 2012 January- Sept 2011 +/- % +/- % like-for- like Sales of cement in million t 111.4 108.1 +3.0 +2.4 Sales of aggregates in million t 120.3 130.4 - 7.7 - 8.7 Sales of ready-mix concrete in million m 3 35.5 36.1 - 1.7 - 2.8 Operating EBITDA in million CHF 3,147 2 ,971 +5.9 +6.4 Net income in million CHF 1,108 1 ,004 +10.3 © 2012 Holcim Ltd • Robust demand in Asia, but subdued building activity in the Pacific rim • Rising cement deliveries, but declining aggregates and ready-mix concrete sales volumes due to Australia • Inflation-induced cost increases have been passed on to customers • Higher operating EBITDA primarily due to India, Indonesia, Holcim Australia and the Philippines • Solid organic growth at operating EBITDA level Asia Pacific continues its growth track 3 Asia Pacific January- Sept 2012 January- Sept 2011 +/- % +/- % like-for- like Sales of cement in million t 59.5 56.2 +5.9 +5.4 Sales of aggregates in million t 21.2 22.3 - 4.7 - 4.7 Sales of ready-mix concrete in million m 3 9.7 9.8 - 0.5 - 0.5 Operating EBITDA in million CHF 1,446 1 ,264 +14.5 +17.5 3 4) In most Latin American markets the construction industry remained robust. This includes countries like El Salvador, Ecuador or Colombia. In Mexico however, building activity declined slightly in the aftermath of the July presidential elections, and in Brazil, the overheated economy cooled down. The economic situation in the inflationary driven Argentina was difficult. Holcim Apasco in Mexico and Holcim El Salvador increased sales volumes in all segments. Holcim also achieved higher cement shipments in Costa Rica, Nicaragua, Colombia, Ecuador, Brazil and Chile. In the ready-mix concrete area, the reduction in volumes is primarily the result of optimizing margins in this business at Holcim Brazil. Due to weaker demand, sales volumes declined in all segments in Argentina. The operating EBITDA of the Group region Latin America increased despite higher input costs and the weaker Brazilian currency. Operating margins also improved. This reflects not only the higher cement sales volumes and the better price situation, but also ongoing efforts to control costs. 5) In the European Union the debt crisis and austerity budgets also impacted business development in the construction sector. Countries in the south and east of the continent were hit particularly hard by the recession. However, economic activity developed positively in Russia and Azerbaijan. Aggregate Industries UK could not escape the negative market development. Holcim also experienced declining sales volumes in Belgium, the Netherlands and France. Despite lower demand in Spain, Holcim Spain was more or less able to maintain sales of cement and clinker due to exports. In Italy, construction markets remained subdued. Holcim Germany sold slightly less cement, but more aggregates and ready-mix concrete. Due to increasing imports, Holcim Switzerland experienced lower sales volumes in all segments. In all markets of this Group region, the price situation remained difficult. In Eastern and Southeastern Europe public and private investment activity remained modest. Due to the integration of VSH in Slovakia, cement shipments in Eastern Europe practically achieved the previous year’s level. In the ready-mix concrete business the Group companies in Romania, Croatia and the Czech Republic increased deliveries. Bulgaria was hit particularly hard by the present difficult market situation. The situation of the construction industry in Russia and Azerbaijan was very different: solid growth in the construction industry supported demand for cement in both markets and price increases could be implemented in Russia. Holcim has also decided to modernize the Volsk plant in the Volga region with a new kiln line which will go on stream in the third quarter of 2016. Including restructuring measures of 47 million Swiss francs, consolidated operating EBITDA declined in Europe. A substantially lower performance was achieved at Holcim Switzerland, Aggregate Industries UK and Holcim France. Better operating results were primarily achieved by the Group companies in Azerbaijan and Russia. The new and leaner management structure of Europe is deployed and in place to handle the difficult economic situation in that Group region. © 2012 Holcim Ltd • Demand for building materials remains predominantly steady • House building and infrastructure expansion are growth drivers • Higher cement sales and partially better market prices • Significantly better operating results in Colombia, Ecuador and El Salvador • Increasing operating EBITDA and better margin, despite higher energy costs Latin America remains a pillar of the Group’s success 4 Latin America January- Sept 2012 January- Sept 2011 +/- % +/- % like-for- like Sales of cement in million t 18.5 18.0 +3.0 +3.0 Sales of aggregates in million t 10.6 10.9 - 3.3 - 3.3 Sales of ready-mix concrete in million m 3 7.8 8.2 - 5.2 - 5.2 Operating EBITDA in million CHF 721 662 +8.8 +8.4 © 2012 Holcim Ltd • Debt crisis and restrictive budgetary policies weaken demand • Declining sales in all segments and further price pressure • Restructuring costs impact performance • Better results in Russia and Azerbaijan • Weaker operating results in Group region Europe Europe’s economy is suffering from the debt crisis 5 Europe January- Sept 2012 January- Sept 2011 +/- % +/- % like-for- like Sales of cement in million t 20.1 20.6 - 2.3 - 4.6 Sales of aggregates in million t 56.2 63.6 - 11.7 - 12.4 Sales of ready-mix concrete in million m 3 11.1 12.2 - 8.7 - 8.8 Sales of asphalt in million t 3.5 4.2 - 16.6 - 16.6 Operating EBITDA in million CHF 577 707 - 18.4 - 18.2 4 6) In North America the economy continued to expand at a moderate pace. Development in the US construction sector differed considerably from region to region. In the northern states with a Holcim market presence, demand for residential and commercial real estate increased. In Canada, investment activity remained lively. Holcim US sold more cement. Aggregate Industries US increased deliveries of ready-mix concrete. Shipments of aggregates remained below the previous year's level, and asphalt sales declined. Holcim Canada also sold more cement and ready-mix concrete, partly due to favorable weather conditions for construction. Due to delays in projects, sales of aggregates decreased. Sales of asphalt remained stable. Operating EBITDA for Group region North America improved significantly. All three Group companies achieved better financial results, and the operating results of Holcim US and Holcim Canada improved strongly. Aside from increases in sales volumes, the reasons for the improvement in margin included lower energy costs and better prices. 7) Over the course of the year, Africa Middle East lost some momentum due to the lack of dynamism in important markets such as Morocco and Lebanon. Social housing remained the main pillar of growth. The Lebanese economy felt the conflict and turmoil in Syria. This had an impact on construction activity particularly in the north of the country, while it remained lively in the region of Beirut. In all segments, delivery volumes of Holcim Morocco almost reached the level of the previous year, but market prices weakened over the course of 2012. At Holcim Lebanon, shipments of cement declined. However, due to several construction projects in the region of Beirut, deliveries of ready-mix concrete slightly rose. In the Indian Ocean region, the Group companies recorded slightly lower sales of cement. In West Africa and the Arabian Gulf local grinding stations increased their deliveries of cement. The reduction in operating EBITDA can be attributed largely to adverse market conditions and higher production costs in Lebanon. © 2012 Holcim Ltd • Moderate economic growth continues in the US with regional differences; in Canada, investment activity remains lively • Higher cement and ready-mix concrete shipments, but declining aggregates business • Lower energy costs and partially higher prices • All Group companies achieved higher operating EBITDA North America with higher cement and ready-mix concrete deliveries 6 North America January- Sept 2012 January- Sept 2011 +/- % +/- % like-for- like Sales of cement in million t 8.9 8.5 +4.2 +4.2 Sales of aggregates in million t 30.6 31.9 - 4.2 - 6.9 Sales of ready-mix concrete in million m 3 6.0 5.1 +17.8 +10.5 Sales of asphalt in million t 3.1 3.5 - 10.5 - 10.5 Operating EBITDA in million CHF 348 264 +32.0 +25.2 © 2012 Holcim Ltd • In Morocco, construction activity decreased over the course of the year, and Lebanon was affected by the political unrest in the region • Stable construction markets in the Indian Ocean and in West Africa • Lower sales volumes of cement, but higher deliveries of aggregates and ready-mix concrete • Decreasing operating EBITDA due to Lebanon, but stable results in Morocco, West Africa and Indian Ocean Lack of activity in Africa Middle East 7 Africa Middle East January- Sept 2012 January- Sept 2011 +/- % +/- % like-for- like Sales of cement in million t 6.4 6.5 - 0.9 - 0.9 Sales of aggregates in million t 1.8 1.7 +6.0 +6.0 Sales of ready-mix concrete in million m 3 0.9 0.8 +1.4 +1.4 Operating EBITDA in million CHF 221 237 - 7.1 - 7.4 5 8) Let us begin with the review of the key financial figures of the third quarter before turning to the nine months 2012 results. Net sales increased by 9.8 percent driven by like-for-like growth of 3.2 percent and foreign currency developments contributing 6.2 percent. While Cement recorded a flat volume growth and Aggregates and Ready-Mix concrete continued to witness negative volume developments compared to last year, all three product categories continued to record mid- to high-single digit price that contributed substantially to the overall sales growth. Continued efforts on the operating cost base resulted in fixed costs growing at a lower rate than sales, offsetting parts of the proportional increase in variable costs driven by higher raw material and energy costs. As a result of this and above all the higher prices, the operating EBITDA increased to 1.2 billion Swiss francs, expanding the operating EBITDA margin on a like-for-like base from 20.2 percent in the third quarter 2011 to 20.8 percent in the third quarter 2012. Adjusting for the 21 million Swiss francs restructuring costs related to Hungary and the 3 million Swiss francs lower CO2 sales, the margin even reached 21.2 percent. The operating profit benefited from the aforementioned developments and together with a slightly reduced depreciation and amortization increased by 13.9 percent to 762 million Swiss francs. Adjusting for the 3 million Swiss francs lower CO2 sales in Europe and the one- off costs of 60 million Swiss francs related to the Holcim Leadership Journey, the operating profit margin improved to 14.1 percent, up from 12.6 percent a year ago. The net income attributable to Holcim shareholders increased by 10.5 percent to 394 million Swiss francs, while the cash flow from operating activities, driven by the improved operating EBITDA, increased to 896 million Swiss francs. 9) Let us now cover the key financial figures for the first nine months of 2012. Net sales amounted to 16.2 billion Swiss francs, up 4.8 percent compared to the first nine months of 2011. On the pricing side all three product groups recorded encouraging results, hence contributing to top line growth. Volume developments offered a somewhat different picture, with volumes in Cement softening during the course of the nine months compared to last year prompted mainly by lower demand in Argentina and Morocco. Aggregates and Ready- mix concrete recorded negative year-on-year volume developments mainly in mature markets. Continued efforts on the cost side resulted in fixed costs increasing under proportionally, hence partially compensating for the increase in variable costs related to an increase mainly in raw material and energy. As a result the operating EBITDA increased by 5.9 percent, or a good 6.4 percent on a like-for-like base. Adjusting for the higher CO2 sales of 11 million Swiss francs and the 58 million Swiss francs restructuring costs, the operating EBITDA increased to nearly 3.2 billion Swiss francs, yielding a margin of 19.7 percent compared to the stated 19.4 percent. Excluding the one-off impacts from the Holcim Leadership Journey of 98 million Swiss francs on operating profit level and the aforementioned CO2 sales, the operating profit margin reached 12.1 percent compared to the stated 11.6 percent. Cash flow from operating activities improved by a good 19.1 percent to 1.1 billion Swiss francs, driven by a higher operating EBITDA and lower taxes paid. © 2012 Holcim Ltd Key financial figures – Q3 2012 Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. 2011 2012 LFL CIS FX Total Sales volumes - Cement (mt) 37.2 37.3 -0.4% 0.7% 0.3% - Aggregates (mt) 49.2 44.8 -9.6% 0.7% -8.9% - Ready-mix (mm 3 ) 13.0 12.7 -2.9% 0.5% -2.5% Net sales 5'318 5'841 3.2% 0.4% 6.2% 9.8% Operating EBITDA 1'074 1'214 6.7% 0.3% 6.1% 13.0% Operating profit 669 762 8.7% -0.7% 6.0% 13.9% Net income 418 484 9.6% 0.4% 5.6% 15.6% Net income - shareholders of Holcim Ltd 356 394 4.6% 0.4% 5.4% 10.5% Cash flow 858 896 4.3% 0.4% -0.2% 4.4% Million CHF (if not otherwise stated) Q3 +/- 8 © 2012 Holcim Ltd Key financial figures – 9M 2012 1 Calculated on the weighted average number of shares outstanding. F Full Year 2011 2011 2012 LFL CIS FX Total Sales volumes - Cement (mt) 144.3 108.1 111.4 2.4% 0.7% 3.0% - Aggregates (mt) 173.0 130.4 120.3 -8.7% 1.0% -7.7% - Ready-mix (mm 3 ) 48.4 36.1 35.5 -2.8% 1.1% -1.7% Net sales 20'744 15'461 16'198 4.9% 0.2% -0.3% 4.8% Operating EBITDA 3'958 2'971 3'147 6.4% 0.1% -0.7% 5.9% Operating profit 1'933 1'753 1'879 9.4% -1.0% -1.3% 7.2% Net income 682 1'004 1'108 12.2% -0.6% -1.2% 10.3% 275 713 783 10.3% -0.9% 0.3% 9.8% Cash flow 2'753 930 1'107 22.7% 0.1% -3.8% 19.1% EPS in CHF 1 0.86 2.23 2.42 8.5% Million CHF (if not otherwise stated) 9M +/- Net income - shareholders of Holcim Ltd 9 6 © 2012 Holcim Ltd Cement – Sales volumes by region Million t 53.2 56.2 59.5 16.8 18.0 18.5 20.1 20.6 20.1 8.4 8.5 8.9 6.8 6.5 6.4 ∆ 9M 11/9M 12 LFL Change in structure Total Asia Pacific 5.4% 0.5% 5.9% Latin America 3.0% 0.0% 3.0% Europe -4.6% 2.3% -2.3% North America 4.2% 0.0% 4.2% Africa Middle East -0.9% 0.0% -0.9% Total 2.4% 0.7% 3.0% Total Group 9M 2010 102.8 9M 2011 108.1 9M 2012 111.4 10 © 2012 Holcim Ltd Aggregates – Sales volumes by region Million t ∆ 9M 11/9M 12 LFL Change in structure Total Asia Pacific -4.7% 0.0% -4.7% Latin America -3.3% 0.0% -3.3% Europe -12.4% 0.7% -11.7% North America -6.9% 2.7% -4.2% Africa Middle East 6.0% 0.0% 6.0% Total -8.7% 1.0% -7.7% 19.6 22.3 21.2 9.0 10.9 10.6 59.5 63.6 56.2 28.8 31.9 30.6 1.9 1.7 1.8 Total Group 9M 2010 118.8 9M 2011 130.4 9M 2012 120.3 11 © 2012 Holcim Ltd Ready-mix concrete and asphalt – Sales volumes by region Million m 3 /t 9.4 9.8 9.7 7.7 8.2 7.8 Total Asphalt 9M 2010 7.8 9M 2011 7.6 9M 2012 6.6 12.4 12.2 11.1 4.4 4.2 3.5 4.2 5.1 6.0 3.4 3.5 3.1 0.8 0.8 0.9 ∆ 9M 11/9M 12 LFL Change in structure Total Asia Pacific -0.5% 0.0% -0.5% Latin America -5.2% 0.0% -5.2% Europe -8.8% 0.1% -8.7% North America 10.5% 7.3% 17.8% Africa Middle East 1.4% 0.0% 1.4% Total -2.8% 1.1% -1.7% Total Ready-mix 9M 2010 34.4 9M 2011 36.1 9M 2012 35.5 12 © 2012 Holcim Ltd Exchange rates 1 Weighted by net sales 9M 2012, 2 Weighted by net sales full year 2011 Statement of income average exchange rates in CHF 9M 10 9M 11 9M 12 +/- 1 EUR 1.40 1.24 1.21 -2.6% 1 GBP 1.63 1.42 1.48 4.2% 1 USD 1.06 0.88 0.94 6.4% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 1.15 1.00 0.96 -4.0% 1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 1.14 1.00 0.98 -1.6% Statement of financial position exchange rates in CHF 30/09/11 31/12/11 30/09/12 +/- 1 EUR 1.22 1.22 1.21 -0.7% 1 GBP 1.40 1.45 1.52 4.5% 1 USD 0.90 0.94 0.93 -0.7% 1 LATAM Basket (MXN, BRL, ARS, CLP) 2 1.18 1.00 1.04 4.0% 1 Asian Basket (AUD, IDR, INR, THB, PHP) 2 1.13 1.00 1.03 2.6% 13 7 16) Net sales amounted ot 16.2 billion Swiss francs, representing an overall increase of 4.8 percent. Excluding changes in the scope of consolidation amounting to 0.2 percent and foreign exchange movements contributing a negative 0.3 percent, the like-for-like change amounted to an increase of 4.9 percent. On a like-for-like base Group sales benefitted from solid cement volume growth in Group region Asia Pacific, North America and Latin America, while on Group region Africa Middle East recorded sound volume growth in aggregates. Group region North America recorded good growth in ready-mix concrete volumes. On a like- for-like base cement prices increased in Group region Asia Pacific, Latin America and to a lesser extent North America, Africa Middle East and Europe. Aggregates pricing on a like-for-like base was mainly driven by Group region Asia Pacific, followed by Europe, North America and Latin America. © 2012 Holcim Ltd -178 -228 -435 -916 -854 -508 -244 -140 331 -32 -41 -73 -203 -181 -98 -47 -38 65 -3.1% -4.3% -9.2% -14.9% -15.1% -9.0% -5.2% -2.6% 6.2% -2.2% -4.1% -8.0% -14.2% -14.7% -10.5% -6.2% -3.3% 6.1% Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Net sales impact Operating EBITDA impact Foreign exchange rate impact 14 Million CHF © 2012 Holcim Ltd Net sales 9M 10 9M 11 9M 12 16,568 15,461 16,198 Like-for-Like (LFL) -358 -2.3% 967 5.8% 757 4.9% Change in structure 1'106 7.0% 130 0.8% 33 0.2% Forex movements 46 0.3% -2'205 -13.3% -53 -0.3% Total change 794 5.0% -1'107 -6.7% 737 4.8% 15 Million CHF © 2012 Holcim Ltd Net sales by region 9M 2010 9M 2011 9M 2012 6020 5929 6579 2587 2467 2613 5136 4691 4434 2449 2151 2394 849 706 726 Million CHF ∆ 9M 11/9M 12 LFL Change in structure Currency Total Asia Pacific 12.8% 0.2% -2.0% 11.0% Latin America 7.4% -0.8% -0.7% 5.9% Europe -5.2% 0.1% -0.4% -5.5% North America 3.7% 1.8% 5.8% 11.3% Africa Middle East 2.4% -0.3% 0.8% 2.9% Total 4.9% 0.2% -0.3% 4.8% 16 8 18) Operating EBITDA nearly reached 3.2 billion Swiss francs, an increase of 5.9 percent. This was mainly driven by better prices and a favorable development of the cost base that more than offset the impact from the overall slight volume decline in Aggregates and Ready-mix concrete. Adjusting for the slightly negative currency impact of minus 0.7 percent and the changes in the scope of consolidation of 0.1 percent, the operating EBITDA increased by a solid 6.4 percent. Excluding the impact from higher CO2 sales of 22 million Swiss francs compared to the previous year’s 11 million Swiss francs and deducting the 58 million Swiss francs related to the Holcim Leadership Journey one-off cash costs, the like-for-like operating EBITDA increased by some 8 percent. 19) The Group region Asia Pacific improved its operating EBITDA by 14.5 percent to roughly 1.5 billion Swiss francs despite the weak Indian rupee. On a like-for-like base the growth even reached 17.5%. Key contributors were Ambuja Cements, Holcim Indonesia, Holcim Australia and Holcim Philippines. While slightly lower volumes prevented Holcim Vietnam from reaching last years level, higher costs impacted the financial result of Holcim Malaysia. The operating EBITDA in Group region Latin America increased by a good 8.8 percent to 721 million Swiss francs despite inflationary cost pressures in Argentina in addition to higher energy costs in some countries. On a like-for-like base the increase amounted to a solid 8.4 percent. This result was achieved from a combination of volume growth, partially improved market prices and last but not least the continued cost focus. While the Group companies in Colombia, Ecuador, El Salvador and Chile © 2012 Holcim Ltd Net sales by region Net sales 9M 2012 Europe 26.5% Asia Pacific 39.3% Africa Middle East 4.3% Latin America 15.6% North America 14.3% 17 © 2012 Holcim Ltd Operating EBITDA 21.6% 19.2% 19.4% Margin Million CHF 9M 10 9M 11 9M 12 3'577 2'971 3'147 Like-for-Like (LFL) -241 -6.7% -156 -4.4% 191 6.4% Change in structure 183 5.1% 8 0.2% 4 0.1% Forex movements 21 0.6% -458 -12.8% -20 -0.7% Total change -37 -1.0% -605 -16.9% 175 5.9% 3'577 2'971 3'147 18 © 2012 Holcim Ltd Operating EBITDA by region 9M 2010 9M 2011 9M 2012 1439 1264 1446 762 662 721 855 707 577 366 264 348 286 237 221 Million CHF ∆ 9M 11/9M 12 LFL Change in structure Currency Total Asia Pacific 17.5% 0.1% -3.1% 14.5% Latin America 8.4% -0.2% 0.7% 8.8% Europe -18.2% 0.4% -0.6% -18.4% North America 25.2% 0.3% 6.6% 32.0% Africa Middle East -7.4% 0.2% 0.1% -7.1% Total 6.4% 0.1% -0.7% 5.9% 19 9 posted substantially better operating results compared to last year, Mexico, Brazil and Argentina were not able to match previous year’s levels due to increasingly challenging market conditions. Brazil’s operating result was particularly impacted by adverse currency developments. The Group region Europe witnessed an 18.4 percent decline of its operating EBITDA to 577 million Swiss francs. On a like-for-like base this decline was only slightly lower at minus 18.2 percent. Restructuring costs of 47 million Swiss francs in Spain, Hungary and UK negatively impacted the operating EBITDA development, while higher CO2 sales of 11 million Swiss francs had a positive impact. While the Group companies in Russia and Azerbaijan posted significantly better operating results, Holcim Switzerland, Aggregate Industries UK and Holcim France recorded lower results compared to last year due to weaker demand. Group region North America posted the highest operating EBITDA growth at 32.0 percent and 25.2 on a like-for-like base to 348 million Swiss francs. The strengthening of the US Dollar contributed some 6.6 percent to this performance. All Group companies posted better operating results. Operating EBITDA in Group region Africa Middle East declined by 7.1 percent to 221 million Swiss francs. The decline was largely driven by adverse market conditions and higher production costs in Lebanon. The Group companies in Morocco and West Africa managed to match last year's levels. 22) Below operating profit, other income amounted to 20 million Swiss francs, up 17 million Swiss francs. The contribution from associated companies declined to 73 million Swiss francs, down from 104 million © 2012 Holcim Ltd Operating profit 13.1% 11.3% 11.6% 9M 10 9M 11 9M 12 2'178 1'753 1'879 Margin Like-for-Like (LFL) -292 -12.5% -139 -6.4% 165 9.4% Change in structure 103 4.4% -6 -0.3% -17 -1.0% Forex movements 30 1.3% -280 -12.8% -22 -1.3% Total change -159 -6.8% -425 -19.5% 126 7.2% 20 Million CHF © 2012 Holcim Ltd Operating profit by region 1 9M 2010 9M 2011 9M 2012 1003 890 1044 608 515 557 377 295 159 95 30 110 245 201 184 ∆ 9M 11/9M 12 LFL Change in structure Currency Total Asia Pacific 21.2% 0.2% -4.0% 17.3% Latin America 7.0% -0.2% 1.1% 8.0% Europe -42.9% -4.1% 1.1% -45.9% North America 278.9% -20.2% 12.9% 271.5% Africa Middle East -9.2% 0.5% -0.2% -8.9% Total 9.4% -1.0% -1.3% 7.2% 21 Million CHF © 2012 Holcim Ltd Net income 1,223 1,004 1,108 875 713 783 -22.4% -17.9% 10.3% -27.1% -18.5% 9.8% 9M 10 9M 11 9M 12 Net income Net income - shareholders of Holcim Ltd 22 Million CHF 10 Swiss francs over first nine months in 2011 with the main driver being the lower profit from the stake in China and Egypt. Financial income increased by 28 million Swiss francs to 189 million Swiss francs mainly driven by higher interest on cash and marketable securities. Financial expenses decreased from 606 million to 572 million Swiss francs mainly as a result of lower foreign exchange losses and lower unwinding of discounts on provisions. After a tax charge of 482 million Swiss francs, Group net income increased from 1,004 million Swiss francs to 1,108 million Swiss francs. Adjusting for non-controlling interests, the net income improved by 9.8 percent to 783 million Swiss francs. 24) The financing requirement for the first nine months of 2012 amounted to 229 million Swiss francs. Higher operating EBITDA and lower income taxes more than offset higher working capital needs and financial expenses, thus resulting in a cash flow from operating activities of 1,107 million Swiss francs, up 19.1 percent. On a like-for-like base the increase reached 22.7 percent. For the first nine months, investments to sustain the asset base decreased to 394 million Swiss francs on a net base, with roughly 75 percent of this being allocated to Cement. Expansion investments at 469 million Swiss francs, was down 19.6 percent. While around 80 percent of this was invested in Cement, Aggregates and Ready-mix concrete each accounted for 10 percent. These lower investments combined with the dividends paid supported the overall increase of the cash flow generation capacity in the first nine months 2012. © 2012 Holcim Ltd Cash flow from operating activities 9M 10 9M 11 9M 12 2'053 12.4% 6.0% 6.8% Like-for-Like (LFL) -279 -12.7% -968 -47.1% 211 22.7% Change in structure 135 6.2% -16 -0.8% 1 0.1% Forex movements 5 0.2% -140 -6.8% -35 -3.8% Total change -139 -6.3% -1'123 -54.7% 177 19.1% 1'107 930 23 Million CHF © 2012 Holcim Ltd Statement of cash flows Full Year 2011 2011 2012 Cash flow from operating activities 2,753 930 1'107 19.1% Net investments to maintain productive capacity and to secure competitiveness -752 -427 -394 7.7% Free cash flow 2,001 502 713 41.8% Expansion investments -886 -583 -469 19.6% Financial investments net -153 54 61 12.7% Dividends paid -713 -703 -535 23.9% Financing surplus/(requirement) 248 -729 -229 68.5% +/- Million CHF 9M 24 © 2012 Holcim Ltd Financial position Million CHF 12,127 11,549 11,579 19,424 19,656 20,570 62.4% 58.8% 56.3% 30.9.2011 31.12.2011 30.9.2012 Net financial debt Total shareholders' equity Gearing 25 [...]... communications @holcim. com February 27, 2013 Press and analyst conference annual results for 2012 April 17, 2013 General meeting for shareholders May 8, 2013 Results for the first quarter 2013 Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors 15 August, 2013 Half-year results for 2013 5 November, 2013 Press and analyst conference third quarter results. .. EBITDA FX Total 8.2 7. 8 -5.2% 0.0% 2,4 67 2,613 7. 4% -0.8% -0 .7% -5.2% 5.9% 662 72 1 8.4% -0.2% 0 .7% 8.8% © 2012 Holcim Ltd 30 Europe – regional overview +/- 9M 2011 2012 LFL CIS Cement volumes (mt) - of which mature markets - of which emerging markets 20.6 12 .7 7.9 20.1 11.5 8.6 -4.6% -9.1% 2.8% 2.3% 0.0% 6.0% -2.3% -9.1% 8.8% Aggregates volumes (mt) - of which mature markets - of which emerging markets... case, Holcim will accord cost management the closest attention, and pass on inflation-induced cost increases Holcim s approach to new investments will be cautious Holcim expects the Group to achieve organic growth in 2012 on the level of operating EBITDA, and additionally to reap the first positive effects of the Holcim Leadership Journey this year © 2012 Holcim Ltd 27 27) Holcim expects demand for... -0 .7% 5.8% 6.1% 3.2% 0 .7% 7. 3% -2.9% 4.6% 1 * If not otherwise indicated calculation based on local currencies -12.4% -9.3% -4 .7% -7. 7% 8.4% - 17. 0% -30 .7% 4.1% -8.8% -44.1% 3.9% 3.3% 3.1% -6.9% -5.1% -3 .7% 1 Weighted average like-for-like © 2012 Holcim Ltd 14 39 Contact information and event calendar Contact information Event calendar Corporate Communications Phone +41 58 858 87 10 Fax +41 58 858 87. .. 7. 2 -12.4% -11.9% -15 .7% 0 .7% 0.0% 5.5% -11 .7% -11.9% -10.2% Ready-mix volumes (mm3) - of which mature markets - of which emerging markets 12.2 10.8 1.4 11.1 9.8 1.4 -8.8% -9.0% -6.5% 0.1% -0.6% 5.6% -8 .7% -9.6% -0.9% Net sales - of which mature markets - of which emerging markets 4,691 3,858 833 4,434 3,529 904 -5.2% -7. 9% 7. 3% 0.1% -0.9% 4.6% -0.4% 0.2% -3.4% -5.5% -8.5% 8.5% Operating EBITDA - of. .. (mt) - of which mature markets - of which emerging markets 22.3 19.4 2.9 21.2 18.3 2.9 -4 .7% -5.4% 0.4% 0.0% 0.0% 0.0% -4 .7% -5.4% 0.4% Ready-mix volumes (mm3) - of which mature markets - of which emerging markets 9.8 4.3 5.5 9 .7 4.2 5.6 -0.5% -3.4% 1 .7% 0.0% 0.0% 0.0% -0.5% -3.4% 1 .7% Net sales - of which mature markets - of which emerging markets 5,929 1 ,78 4 4,145 6, 579 1,960 4,619 12.8% 3.4% 16.8%... rate of 27 percent • Maintenance capex of CHF 0 .75 billion net due to lower utilization levels mainly in Europe • Expansion capex of CHF 1.1 billion © 2012 Holcim Ltd 28 Asia Pacific – regional overview +/- 9M 2011 2012 LFL CIS Cement volumes (mt) - of which mature markets - of which emerging markets 56.2 3.5 52 .7 59.5 3.5 56.0 5.4% -0.5% 5.8% 0.5% 0.0% 0.5% 5.9% -0.5% 6.3% Aggregates volumes (mt) - of. .. Capital markets 77 %; Loans 23% • Corporate vs subsidiary debt: 77 % corporate 2'000 • Ø total maturity: 4.0 years 1'000 • CP borrowings: CHF 394 million • No material financial covenants at Corporate level 0 10y ST/LT ratings summary as of November 6, 2012 • S&P Credit Rating: A-2 / BBB, outlook stable • Fitch Credit Rating: F2 / BBB, outlook stable... -6.9% 2 .7% -4.2% 5.1 6.0 10.5% 7. 3% 17. 8% 2,151 2,394 3 .7% 1.8% 5.8% 11.3% 264 348 25.2% 0.3% 6.6% 32.0% FX Total 4.2% © 2012 Holcim Ltd 32 Africa Middle East – regional overview Million CHF (if not otherwise stated) 9M 2011 + /2012 LFL CIS FX Total Cement volumes (mt) 6.5 6.4 -0.9% 0.0% -0.9% Aggregates volumes (mt) 1 .7 1.8 6.0% 0.0% 6.0% Ready-mix volumes (mm3) 0.8 0.9 1.4% 0.0% Net sales 70 6 72 6 2.4%... 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 © 2012 Holcim Ltd 41 © 2012 Holcim Ltd 42 Strength Performance Passion 15 . -605 -16.9% 175 5.9% 3' 577 2' 971 3'1 47 18 © 2012 Holcim Ltd Operating EBITDA by region 9M 2010 9M 2011 9M 2012 1439 1264 1446 76 2 662 72 1 855 70 7 577 366 264 348 286 2 37 221 Million. Presentation of November 7, 2012 The spoken word prevails. Strength. Performance. Passion. 3 rd quarter results 2012 and outlook . 9 67 5.8% 75 7 4.9% Change in structure 1'106 7. 0% 130 0.8% 33 0.2% Forex movements 46 0.3% -2'205 -13.3% -53 -0.3% Total change 79 4 5.0% -1'1 07 -6 .7% 73 7 4.8% 15 Million CHF © 2012