Bank of America Merrill Lynch Pan-European Building & Infrastructure Conference London, October 9, 2013 © 2013 Holcim Ltd Agenda Holcim at a glance Holcim’s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook © 2013 Holcim Ltd Product focus – two core segments and their channels Product segments 2012 Cement Clinker  217.5 million tons production capacity  147 cement and grinding plants  Sales: 148.0 million tons Net sales per segment 2012 Net sales CHF 21.5 billion 31.6% 58.0% 10.4% Aggregates  470 aggregates plants  Sales: 159.7 million tons Other construction materials & services  1,286 RMX plants  99 asphalt plants  Sales of ready-mix concrete: 46.9 million m3  Sales of asphalt: 9.1 million tons BofAML Pan-European Building & Infrastructure Conference Op EBITDA per segment 2012 Op EBITDA CHF 4.0 billion 3.4% 86.5% 10.1% Cement Aggregates Other Construction Materials and Services © 2013 Holcim Ltd Holcim – well balanced global portfolio Sales volumes per region 2012 Asia Pacific Net sales per region 2012 (million t or m3) • Cement 79.2 • Aggregates 27.8 • Ready-mix concrete 12.8 Net sales CHF 21.5 billion 26.1% 14.7% Latin America • Cement • Aggregates • Ready-mix concrete 24.9 14.0 10.2 Europe 15.7% 39.2% 4.3% Op EBITDA per region 2012 • Cement • Aggregates • Ready-mix concrete 26.3 74.3 14.7 North America Op EBITDA CHF 4.0 billion 14.9% 11.4% • Cement • Aggregates • Ready-mix concrete 12.0 41.3 8.1 44.4% 22.7% Africa Middle East • Cement • Aggregates • Ready-mix concrete BofAML Pan-European Building & Infrastructure Conference 8.4 2.3 1.1 Asia Pacific North America Latin America 6.6% Africa Middle East Europe © 2013 Holcim Ltd Agenda Holcim at a glance Holcim’s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook © 2013 Holcim Ltd Holcim’s Strategy House – base for value creation Goal Creation of Value Geographic Diversification Strategy Product Focus Mindsets Sustainable Better Permanent Environmental Cost Marketing Performance Management Innovation Local Management Global Standards Human Resources Excellence Corporate Social Responsibility People Base BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd Holcim Value Chain Supply Basic Materials Processing Cementitious Materials (cement, mineral components) Channels Transactional Transformational End - users Direct Sales Ready - mix Concrete Traders General Contractors Concrete Products Self - builders Masons Wholesalers Mortars Aggregates Retailers (sand, gravel, stone, recycled aggregates) Demand Applications and Construction Fields Asphalt Direct Sales BofAML Pan-European Building & Infrastructure Conference Civil Engineering A p p l i c a t i o n s Housing Commercial / Industrial Building Infrastructure © 2013 Holcim Ltd Market maturity defines investment focus Added value through business integration N America, UK France, Spain Value Added Businesses Eastern Europe Aggregates Mexico India Ready-mix Concrete Cement Emerging markets Transition markets BofAML Pan-European Building & Infrastructure Conference Mature markets Market maturity © 2013 Holcim Ltd Positioning – Holcim’s cement market portfolio Cumulated population Growth 2012 - 2017E 12% Mature markets Emerging markets Asia Pacific excl Size of circles represents influenced capacity 2012 India, Oceania, China 43.5 Mt Africa Oceania India Middle East 4.8 Mt 60.5 Mt 10% 8% Demand growth 23.2 Mt 6% North America 22.0 Mt 4% Latin America 35.5 Mt Western Europe 25.9 Mt 2% 0% China 60.0 Mt Eastern Europe 23.3 Mt -2% -4% 2% 3% 4% 5% 6% 7% 8% 9% GDP per capita (at PPP) CAGR 2012 - 2017E 10% 11% 12% Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd Positioning – Holcim’s aggregates market portfolio Cumulated population Growth 2012 - 2017E 12% Mature markets Emerging markets Size of circles represents consolidated sales volumes 2012 10% Asia excl Oceania 3.8 Mt Oceania 23.9 Mt 8% Demand growth Africa Middle East 2.3 Mt 6% North America 41.3 Mt 4% 2% Latin America 14.0 Mt Western Europe 64.8 Mt Eastern Europe 9.5 Mt 0% -2% -4% 2% 3% 4% 5% 6% 7% 8% 9% GDP per capita (at PPP) CAGR 2012 - 2017E 10% 11% 12% Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 10 Strengthening geographic footprint in Germany and value creative combination in Spain Germany • Holcim to acquire Cemex’s operations in West Germany, consisting of cement plant and grinding stations (total cement capacity of 2.5 million tons), 22 aggregates locations, 79 ready-mix plants and slag granulator • Strong German economy • Strengthened aggregates position • Access to stable slag supply in Germany • West German assets will be integrated with our existing Northern German operations and fully consolidated Czech Republic • Holcim to sell Holcim Česko including cement plant (cement capacity 1.1 million tons), aggregates locations and 17 ready-mix plants to Cemex • Holcim to serve customers in the Czech Republic from the Rohoznik plant in Slovakia • Holcim to de-consolidate Holcim Česko Spain • Holcim and Cemex to combine their entire operations in Spain: cement, ready-mix and aggregates • Holcim will hold 25% shareholding of the combined operations and equity account the investment going forward • Substantial synergies through higher asset utilization in Spain • Value creative option benefiting from synergies and potential economic upturn Holcim Cemex Integrated cement plants (#) Grinding stations (#) Cement Capacity (Mt) 3.5 9.4 Aggregates quarries (#) 30 30 Ready-Mix plants (#) 57 63 as of August 2013 • Holcim to remain shareholder of the combined entity for at least years BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 18 Unlocking Synergies Deriving Further Value from the India Platform © 2013 Holcim Ltd ACL acquires Holcim’s 50.01% equity stake in ACC Evolution of current to target shareholder structure Interlinked transaction steps Step I: Acquire 24% in Holcim India 40.79% 0.29% Holcim Step II: Merge Holcim India into ACL 40.79% 76% 24% 76% 24% Holcim India 9.76% ACL 0.29% Holcim ACC ACL Holcim 0.29% 61.39% Holcim India 9.76% 50.01% Target Structure ACL 50.01% ACC 50.01% ACC • Holcim India value of INR 14,584 crore (USD ~2.4 bn) consists of 50.01% stake in ACC for INR 11,727 crore (USD ~2.0 bn) and 9.76% stake in ACL for INR 2,857 crore (USD ~0.4 bn) • Two step transaction for a total deal value of INR 11,727 crore (USD ~2 bn)  Step I: ACL acquires 24% of Holcim India for INR 3,500 crore (USD ~0.6 bn)  Step II: ACL issues net 434 mio equity shares for a total value of INR 8,226 crore (USD ~1.4 bn) to Holcim post cancellation of Holcim India’s 9.76% stake in ACL upon merger • The transaction steps are inter-linked and subject to requisite approvals BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 20 Value creation opportunity Improve Structure • More efficient capital structure & EPS accretive • Re-investment of cash into business • Collaboration under ‘India Management’ structure Unlock Synergies • Synergy potential of approximately INR 900 crore (USD 150 mio) through supply chain and fixed cost optimisation Get Scale • Consolidated pan-India footprint with 58 mio tpa capacity • Confirmed >10 mio tpa capacity expansion underway in both companies; additional projects in planning (e.g ACC Ametha) • Strong and debt free balance sheet; cash flow diversification Maintain Front-end • Complementary premium brands will continue to exist • Independent go-to-market strategy with strong dealer networks / distribution in respective markets Commit to India Group • Investment in Marwar Mundwa • Intent to increase economic ownership in ACC over time • ACC is a perfect fit, being a Holcim Group company already BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 21 Agenda Holcim at a glance Holcim’s Strategy House – base for value creation Holcim Leadership Journey Proactive Asset Management – recently announced transactions Key financial figures H1 2013 and outlook © 2013 Holcim Ltd Key financial figures – H1 2013 Million CHF (if not otherwise stated) Sales volumes - Cement (mt) - Aggregates (mt) - Ready-mix (mm3) Net sales Operating EBITDA Operating profit Net income Net income - shareholders of Holcim Ltd Cash flow EPS in CHF Full Year 2012 +/- 6M 2012 2013 LFL CIS 142.3 158.2 45.3 71.2 74.8 22.1 68.6 69.4 18.8 -2.9% -6.2% -9.5% -0.7% -1.0% -5.6% 21,160 3,889 1,749 1,002 10,166 1,884 1,082 614 9,649 1,819 1,046 760 -1.4% -0.6% 0.1% -2.9% -2.1% -2.2% 610 2,643 387 188 571 267 1.89 1.20 1.75 47.7% -3.2% FX Total -3.7% -7.2% -15.0% -0.7% -0.7% -1.2% -2.6% -5.1% -3.4% -3.3% 23.8% 47.4% 41.8% 46.0% Calculated on the weighted average number of shares outstanding Note: Due to the changes in accounting policies explained in note of the interim financial statements, the comparative information for the first half and full year 2012 has been restated for each financial statement line item BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 23 Outlook for 2013 • Asia Pacific: Positive development in Asia, stable cement demand in Pacific Rim • Latin America: Higher demand for construction materials • Europe: Only slight decrease in sales volumes; positive development of construction activity in Russia and Azerbaijan • North America: Cement sales volumes similar to previous year • Africa Middle East: Muted demand at previous year’s level Turning to operating EBITDA and operating profit, the Board of Directors and Executive Committee expect a further improvement of margins The Holcim Leadership Journey, which gains further momentum, will contribute to this development Under similar market conditions, organic growth in operating EBITDA and operating profit should be achieved in 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 24 Regional Backup Slides Positions in Europe Cement plant Grinding plant/ terminal Aggregates Participation: Cement plant Under construction Cement capacity*: 47.9 Mt * as of June 30, 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 26 Positions in North America Cement capacity*: 22.0 Mt Cement plant Grinding plant/ terminal Aggregates * as of June 30, 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 27 Positions in Latin America Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Aggregates Under construction Cement capacity*: 35.2 Mt * as of June 30, 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 28 Positions in Africa Middle East 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Aggregates Cement capacity*: 10.7 Mt; further 12.5 Mt with partners * as of June 30, 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 29 Positions in Asia Pacific 1 Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal 1 Under construction Cement capacity*: 90.6 Mt; further 81.5 Mt with partners * as of June 30, 2013 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 30 Contact information and event calendar Contact information Event calendar Bernhard A Fuchs Michel R Gerber Swetlana Iodko November 5, 2013 Press and analyst conference for the third quarter 2013 February 26, 2014 Press and analyst conference on annual results for 2013 Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations@holcim.com www.holcim.com/investors April 29, 2014 General meeting of shareholders Mailing list: www.holcim.com/subscribe BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 31 Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the Group’s future business, development and economic performance Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals 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 BofAML Pan-European Building & Infrastructure Conference © 2013 Holcim Ltd 32 ... being a Holcim Group company already BofAML Pan- European Building & Infrastructure Conference © 2013 Holcim Ltd 21 Agenda Holcim at a glance Holcim? ??s Strategy House – base for value creation Holcim. .. Holcim India 40. 79% 0. 29% Holcim Step II: Merge Holcim India into ACL 40. 79% 76% 24% 76% 24% Holcim India 9. 76% ACL 0. 29% Holcim ACC ACL Holcim 0. 29% 61. 39% Holcim India 9. 76% 50.01% Target Structure... construction Cement capacity*: 47 .9 Mt * as of June 30, 2013 BofAML Pan- European Building & Infrastructure Conference © 2013 Holcim Ltd 26 Positions in North America Cement capacity*: 22.0 Mt