© 2013 Holcim Ltd Société Générale Premium Review Conference Bernard Fontana, CEO Holcim Group Paris, December 4, 2013 © 2013 Holcim Ltd © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Agenda 2 Holcim Strategy and Positioning - base for value creation Holcim Leadership Journey Proactive Asset Management - recently announced transactions Regional overview Conclusions © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Europe (mature) Asia Pacific (mature) North America 0 1'000 2'000 3'000 4'000 5'000 6'000 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E -6% 0% -1% 7% 8% 6% 16% 4% 12% 3% 11% 8% 1% 10% Asia Pacific (emerging) Europe (emerging) Global construction growth is driven by emerging markets and recovery in Europe and US Construction Industry Value Outlook until 2017E (USD bn) Source: BMI Market Outlook, 2013 3 Share of market 2008 2017E - Emerging markets 29% 48% - Developed markets 71% 52% Africa / Middle East Latin America CAGR ‘13-’17: 7% CAGR ‘08-’12: 3% © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Holcim’s Strategy House – base for value creation Creation of Value Mindsets Strategy Goal Base Product Focus Geographic Diversification Local Management Global Standards People Better Cost Management Permanent Marketing Innovation Human Resources Excellence Corporate Social Responsibility Sustainable Environmental Performance 4 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Positioning – Holcim’s cement market portfolio Cumulated population Growth 2012 - 2017E -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% GDP per capita (at PPP) CAGR 2012 - 2017E Western Europe 25.9 Mt Eastern Europe 23.3 Mt Africa Middle East 23.2 Mt Mature markets Emerging markets Size of circles represents influenced capacity 2012 North America 22.0 Mt India 60.5 Mt China 60.0 Mt Asia Pacific excl. India, Oceania, China 43.5 Mt Latin America 35.5 Mt Demand growth Oceania 4.8 Mt Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 5 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Positioning – Holcim’s aggregates market portfolio -4% -2% 0% 2% 4% 6% 8% 10% 12% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Western Europe 64.8 Mt Africa Middle East 2.3 Mt Latin America 14.0 Mt North America 41.3 Mt Asia excl. Oceania 3.8 Mt Mature markets Emerging markets Size of circles represents consolidated sales volumes 2012 Eastern Europe 9.5 Mt Demand growth GDP per capita (at PPP) CAGR 2012 - 2017E Cumulated population Growth 2012 - 2017E Oceania 23.9 Mt Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013 6 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Agenda 7 Holcim Strategy and Positioning - base for value creation Holcim Leadership Journey Proactive Asset Management - recently announced transactions Regional overview Conclusions © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale The Holcim Leadership Journey and a focused capital allocation to increase short and long term returns Holcim Leadership Journey Operating profit increase of at least CHF 1.5 bn and ROIC AT > 8%* by 2014 Customer Excellence Cost Leadership CHF 500 m > CHF 1 bn Capture demand through advice & service Optimization of cost base Customer focus Value management Pricing policies Marketing and sales Energy and AFR Logistics Procurement Fixed cost * In similar markets conditions. Corresponds to a ROIC BT of > 11.8% 8 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Holcim Leadership Journey is on track All figures in million CHF 2012 2013 2014 Target achieved Target 9M Customer Excellence (operating profit impact) 50-100 31 150-200 95 500 -Customer focus -Value management -Pricing policies -Marketing and sales forces skills and motivation Cost Leadership (operating profit impact) 100-200 127 400-500 531 > 1,000 -Energy and AFR 40 146 > 300 -Logistics 0 104 > 250 -Procurement 48 131 > 250 -Fixed cost 39 151 > 200 Total increase in operating profit 1) 150-300 158 550-700 626 > 1,500 Cash cost to achieve the savings (one-off) < 80 239 3) 0 3) 0 Additional CAPEX net 2) 0-40 48 100-180 105 100-180 1) The base line is the financial year 2011 amounting to CHF 2,308 million (excluding one-off charges 2011 of CHF 375 m and without fluctuations in currency, changes in scope of consolidation and similar market conditions) 2) Additional CAPEX net will come from prioritization of CAPEX based on the speed of the returns (ROIC). Current energy fund of CHF 100 million will be maintained through the period 2012 – 2014 3) Original amount was projected < CHF 120 million for 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage 9 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Agenda 10 Holcim Strategy and Positioning - base for value creation Holcim Leadership Journey Proactive Asset Management - recently announced transactions Regional overview Conclusions [...]... annual results for 2013 April, 28, 20 14 Results for the first quarter 20 14 April 29, 20 14 General meeting of shareholders July 30, 20 14 Half-year results for 20 14 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 Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 25 Disclaimer... in Morocco 1 Annual Premium Review Conference 2013 - Société Générale Restated due to changes in accounting policies © 2013 Holcim Ltd 22 Agenda Holcim Strategy and Positioning - base for value creation Holcim Leadership Journey Proactive Asset Management - recently announced transactions Regional overview Conclusions Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 23 Conclusions... 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, 5 84 crore (USD ~2 .4 bn) consists of 50.01% stake in ACC for INR 11,727 crore (USD... issued a formal decision on November 14th, 2013 to submit extensive economic data Due to this formal decision, Phase II is on hold until November 29th, 2013 Next steps • Decision of the European Commission by March / April, 20 14 • Transaction expected to be closed in Q2 20 14 Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 13 ACL acquires Holcim s 50.01% equity stake in ACC... Short-term, for 2013 Holcim expects on a like-for-like basis growth in operating EBITDA and operating profit coupled with a further improvement in margins Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 24 Contact information and event calendar Contact information Event calendar Bernhard A Fuchs Michel R Gerber Swetlana Iodko February 26, 20 14 Press and analyst conference on... 90 .4% of shareholders for the proposed restructuring Next steps • High Court approval (Delhi and Gujarat) on the scheme of amalgamation under Sec 391-3 94 of the Companies Act, 1956 (regulatory process) • Clearance from Foreign Investment Promotion Board (FIPB) • Transaction expected to be closed in Q2 / Q3 20 14 Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 16 Agenda Holcim. .. 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 Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 15... expected synergies Annual Premium Review Conference 2013 - Société Générale © 2013 Holcim Ltd 12 Recent developments / Next steps Recent developments • European Union antitrust regulators to further investigate series of transactions with Cemex   EU Commission opened a Phase II investigation of the German transaction on October 22nd, 2013 Phase II could take until end of April 20 14 (90 to max 125 working... India and in aggregates due to Holcim Australia • Holcim Philippines benefitted from strong demand and better prices • Despite progress on the cost front, weaker results in India and negative currency translation effects led to a decrease in operating EBITDA 1 Annual Premium Review Conference 2013 - Société Générale Restated due to changes in accounting policies © 2013 Holcim Ltd 18 Latin America still... 1 Annual Premium Review Conference 2013 - Société Générale Restated due to changes in accounting policies © 2013 Holcim Ltd 20 North America continues its recovery • The US construction industry became slightly more dynamic, but in Canada economic growth slowed down • Holcim US recorded slight decrease in cement sales and Aggregate Industries US sold more aggregates and readymix concrete • Holcim Canada . © 2013 Holcim Ltd Société Générale Premium Review Conference Bernard Fontana, CEO Holcim Group Paris, December 4, 2013 © 2013 Holcim Ltd © 2013 Holcim Ltd Annual Premium Review Conference 2013. Performance 4 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Positioning – Holcim s cement market portfolio Cumulated population Growth 2012 - 2017E -4% -2% 0% 2% 4% 6% 8% 10% 12% 2%. 0.29% 24% 76% Step II: Merge Holcim India into ACL Target Structure Interlinked transaction steps HolcimHolcim 14 © 2013 Holcim Ltd Annual Premium Review Conference 2013 - Société Générale Value creation