Strength. Performance. Passion. © 2013 Holcim Helvea Conference 2013 – ROIC: Past - Present - Future Bernard Fontana, CEO Holcim Ltd © 2013 Holcim Helvea Swiss Equities Conference January 2013 © 2013 Holcim Agenda Assessing our strategy and asset portfolio 3 The first eight months of the Holcim Leadership Journey 11 Identifying and capturing growth globally 16 ROIC: Past, Present, Future 20 Helvea Swiss Equities Conference January 2013 2 © 2013 Holcim Building on a proven strategy… 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 Helvea Swiss Equities Conference January 2013 3 © 2013 Holcim …and increasing the focus on ROIC ROIC & HVA (Holcim Value Added) Outside view Market capitalization (incl. minority interests) + financial debt (Dividend paid + share price appreciation) / Share Price Company result after consideration of all costs of capital, incl. cost of equity Key operational indicator focused on cash-generation/ efficiency TSR (Total Shareholder Return) Op. EBITDA / Op. EBITDA - Margin ROIC & EV (Enterprise Value) - Credit Rating Internal view Value Creation Helvea Swiss Equities Conference January 2013 4 © 2013 Holcim Sustainable growth through the execution of a 14.5 million tonne pipeline provides for cost leadership and returns Capital expansion investments (CHF m) Production capacity cement (mt) Helvea Swiss Equities Conference January 2013 5 © 2013 Holcim Reported figures recorded significant currency fluctuations - total operating EBITDA impact of CHF 1.5 bn (2007- 9M 2012) Index at 100 (1.1.2007) Source: Datastream 6 -23% -25% -37% -1% -38% -36% Helvea Swiss Equities Conference January 2013 © 2013 Holcim Emerging markets continue to record sound growth rates 7 1 IMF World Economic Outlook Databases as of October 2012 -4% -2% 0% 2% 4% 6% 8% 10% 12% -10'000 -5'000 0 5'000 10'000 15'000 20'000 25'000 30'000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CHF m GDP growth Sales Operating EBITDA World (rhs) 1 Advanced economies (rhs) 1 Emerging / developing economies (rhs) 1 Helvea Swiss Equities Conference January 2013 7 © 2013 Holcim Main financing projects concluded within the last 12 months Average interest rate of main financings concluded last 12 months: ~ 3.4% CHF 450 m bond EUR 422 m bilateral loans EUR 2 bn RCF USD 100 m & EUR 38 m ECA financings AUD 500 m bonds AUD 320 m bilateral loans BRL 700 m development banks MXN 4 bn bonds USD 1 bn CP program CAD 250 m RCF EUR 500 m bond Helvea Swiss Equities Conference January 2013 8 © 2013 Holcim Holcim’s ROIC has reached good levels on a pre-crisis level, while witnessing a softening thereafter 1 Based on Invested Capital excluding cash, marketable securities, deferred tax assets/liabilities, prepaid interest, accrued interest receivable and dividends receivable, advance interest received, accrued interest payable and dividends payable ROIC before tax 1 : 10.2% 12.9% 14.2% 14.3% 14.6% 10.2% 9.1% 8.3% 6.5% 0% 2% 4% 6% 8% 10% 12% 14% 16% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Helvea Swiss Equities Conference January 2013 9 © 2013 Holcim Agenda Assessing our strategy and asset portfolio 3 The first eight months of the Holcim Leadership Journey 11 Identifying and capturing growth globally 16 ROIC: Past, Present, Future 20 Helvea Swiss Equities Conference January 2013 10 [...]... 2010 2011 2012E 2013E 2014E 2015E 2016E Source: BMI Market Outlook, 2012 Helvea Swiss Equities Conference January 2013 © 2013 Holcim 18 Agenda Assessing our strategy and asset portfolio The first eight months of the Holcim Leadership Journey Identifying and capturing growth globally ROIC: Past, Present, Future Helvea Swiss Equities Conference January 2013 3 11 16 20 © 2013 Holcim 19 Holcim Leadership... ROICAT > 8%* by 2014 * Corresponds to a ROICBT of > 11.8% Helvea Swiss Equities Conference January 2013 © 2013 Holcim 11 Driving ROIC based on strategy, people, execution ROIC* 2011 ROIC* 2014 Proven strategy < 8% Leadership Journey > 8% Dedicated people Building on competencies, focusing on execution * After tax Helvea Swiss Equities Conference January 2013 © 2013 Holcim 12 Evolution of VALUE ADDED SOLUTION... considerable increase of ROIC Helvea Swiss Equities Conference January 2013 © 2013 Holcim 21 Conclusion • Holcim s strategy has proven successful in the past and will continue to do so going forward • The Holcim Leadership Journey will leverage the benefits of the strategy • Organizational changes at Holcim enable initiatives in the Holcim Leadership Journey • Discipline, incentive and performance management... February 27, 2013 Press and analyst conference on annual results for 2012 April 17, 2013 General meeting of shareholders Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations @holcim. com www .holcim. com/investors May 8, 2013 Results for the first quarter 2013 August 15, 2013 Half-year results for 2013 November 5, 2013 Press and analyst conference for the third quarter 2013 Mailing... in a new tropical garden © 2013 Holcim 14 Agenda Assessing our strategy and asset portfolio The first eight months of the Holcim Leadership Journey Identifying and capturing growth globally ROIC: Past, Present, Future Helvea Swiss Equities Conference January 2013 3 11 16 20 © 2013 Holcim 15 Construction demand is linked to size and growth of GDP… Average Investment ratio (Investments / GDP) 40% 35% Emerging... improved returns • Holcim has high upside potential on cash flow generation and is well financed, with a balanced maturity profile, a strong cash position and access to a wide range of capital markets By 2014 Holcim will earn at least its ROICAT of 8%* based on its strategy, people and execution * Corresponds to a ROICBT of > 11.8% Helvea Swiss Equities Conference January 2013 © 2013 Holcim 22 Contact... received, accrued interest payable and dividends payable Helvea Swiss Equities Conference January 2013 © 2013 Holcim 20 Customer Excellence Internal Holcim Leadership Journey Growing ROIC through different levers Cost Leadership NWC improvement Selective divestments Investment efficiency External + ROIC Market growth Combining these three levers of growth Holcim is able to capture the market growth, the growth... concrete floors Holcim Canada offered the solutions for the Niagara Tunnel project in terms of innovative concrete types, the transportation and several additional process innovations – built to last for 100 years without maintenace Helvea Swiss Equities Conference January 2013 Holcim Canada developed a special concrete for road repairs A high-early -strength concrete mix and the dedication of Holcim s crews... create value for our customers and us Customer Care Consistent Quality Helvea Swiss Equities Conference January 2013 Solid Quote-toCash Processes © 2013 Holcim 13 Driving innovation on a global scale through our network Ceneri tunnel Niagara Tunnel Road mobility Innovative flooring Supertrees Working closely with the customer, Holcim Apasco tailormade a number of mix designs with specialized application... 2013 3 11 16 20 © 2013 Holcim 19 Holcim Leadership Journey will allow Holcim to post a ROICBT of at least 11.8%1 by 2014 ROIC before tax2: 16% 14.6% 14.2% 14.3% 14% 12.9% > 11.8% 12% 10.2% 10% 10.2% 9.1% 8.3% 8% 6.5% 6% 4% 2% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 2 Corresponding to Holcim s WACCBT and a ROICAT of at least 8% Based on Invested Capital excluding cash, marketable . Strength. Performance. Passion. © 2013 Holcim Helvea Conference 2013 – ROIC: Past - Present - Future Bernard Fontana, CEO Holcim Ltd © 2013 Holcim Helvea Swiss Equities Conference January 2013 ©. eight months of the Holcim Leadership Journey 11 Identifying and capturing growth globally 16 ROIC: Past, Present, Future 20 Helvea Swiss Equities Conference January 2013 19 © 2013 Holcim 10.2% 12.9% 14.2% 14.3% 14.6% 10.2% 9.1% 8.3% 6.5% >. cost * Corresponds to a ROIC BT of > 11.8% Helvea Swiss Equities Conference January 2013 11 © 2013 Holcim Driving ROIC based on strategy, people, execution < 8% ROIC* 2011 ROIC* 2014 Building