Strength. Performance. Passion. © 2013 Holcim Cheuvreux German Corporate Conference 2013 Bernhard A. Fuchs, Head Investor Relations John M. Feigl, Investor Relations Officer © 2013 Holcim © 2013 Holcim Agenda Assessing our strategy and asset portfolio 7 The first eight months of the Holcim Leadership Journey 15 Identifying and capturing growth globally 20 ROIC: Past, Present, Future 24 Focus on safety and sustainability 3 Cheuvreux GCC 2013 2 © 2013 Holcim Safety is our first priority • Lost-Time Injury Frequency Rate (LTIFR) for own employees has dropped to 1.6 in 2011 • Puts us amongst the top per- formers in the industry for LTIFR • LTIFR YTD June 2012 was 1.4 which is within our current target of 1.5 • Aim to improve even further – Target: <1 by 2013 3 LTIFR 0 2 4 6 8 10 2004 2005 2006 2007 2008 2009 2010 2011 30. Sep 12 Actual Target 2010 Target 2012 Target 2013 Cheuvreux GCC 2013 © 2013 Holcim Broader stakeholder perspective: Sustainable Development (SD) is our “license to operate” Vision Our vision is to provide foundations for society's future Mission Our mission is to be the world's most respected and attractive company in our industry – creating value for all our stakeholders  Member of World Business Council for Sustainable Development (WBCSD)  Selected as an index component for the Dow Jones Sustainability World Index and the European Dow Jones STOXX Sustainability Index for seven years 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 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 Triple bottom line Social progress Economic growth Environmental performance Holcim Strategy House Cheuvreux GCC 2013 4 © 2013 Holcim • 1990-2011:  2010 target reached ahead of schedule: net 1 CO2 emissions per tonne of cement down by 22% in 2011  Cement prod. increased 100% – absolute net CO2 by 55% • New target – 25% lower emissions per tonne of cement than 1990 baseline by 2015 Holcim met its CO 2 reduction target ahead of schedule – new ambitious target set for 2015 Specific CO 2 emissions (kg CO 2 / tonne cement Thermal substitution rate by alternative fuels (% of thermal energy from alternative fuels) Cheuvreux GCC 2013 5 © 2013 Holcim Agenda Assessing our strategy and asset portfolio 7 The first eight months of the Holcim Leadership Journey 15 Identifying and capturing growth globally 20 ROIC: Past, Present, Future 24 Focus on safety and sustainability 3 Cheuvreux GCC 2013 6 © 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 Cheuvreux GCC 2013 7 © 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 Cheuvreux GCC 2013 8 © 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) 9 Cheuvreux GCC 2013 © 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 10 -23% -25% -37% -1% -38% -36% Cheuvreux GCC 2013 [...]... 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% Cheuvreux GCC 2013 © 2013 Holcim 26 Contact information and event calendar Contact information Event calendar Bernhard A Fuchs Binit B Sanghvi John M Feigl February 27, 2013 Press and analyst conference on annual results for 2012 April... 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 list: www .holcim. com/subscribe Cheuvreux GCC 2013 © 2013 Holcim 27 ... 2013 Holcim 11 Main financing projects concluded within the last 12 months CAD 250 m RCF CHF 450 m bond EUR 500 m bond EUR 422 m bilateral loans USD 1 bn CP program EUR 2 bn RCF USD 100 m & EUR 38 m ECA financings AUD 500 m bonds MXN 4 bn bonds BRL 700 m development banks AUD 320 m bilateral loans Average interest rate of main financings concluded last 12 months: ~ 3.4% Cheuvreux GCC 2013 © 2013 Holcim. .. 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 will ensure growth and 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... types, the transportation and several additional process innovations – built to last for 100 years without maintenace Cheuvreux GCC 2013 Holcim Canada developed a special concrete for road repairs A high-early -strength concrete mix and the dedication of Holcim s crews guaranteed continuous mobility Holcim Switzerland is supplying the concrete solution for the 15 km long Ceneri base tunnel Part of this... receivable, advance interest received, accrued interest payable and dividends payable Cheuvreux GCC 2013 © 2013 Holcim 13 Agenda Focus on safety and sustainability Assessing our strategy and asset portfolio The first eight months of the Holcim Leadership Journey Identifying and capturing growth globally ROIC: Past, Present, Future Cheuvreux GCC 2013 3 7 15 20 24 © 2013 Holcim 14 The Holcim Leadership... 2013 Holcim 21 Global construction growth is strongly driven by emerging markets Construction Market Outlook until 2016E (USD bn) (Share of Market) 2007 2016E Emerging markets: Developed markets: 1400.0 28% 72% CAGR 2012E -2016E 49% 51% 1200.0 Asia Pacific (emerging markets): 12.0%: 1000.0 Europe (mature markets): 2.5%: North America: 2.7%: 800.0 Asia Pacific (developed markets): 1.0%: Latin America:... solution is a unique concrete batching plant in a cavern deep inside the mountain Holcim Singapore delivers the green lablled and high-density concretes for the construction of manmade supertrees in a new tropical garden © 2013 Holcim 18 Agenda Focus on safety and sustainability Assessing our strategy and asset portfolio The first eight months of the Holcim Leadership Journey Identifying and capturing... 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 methodologies to deliver highly durable and attractive industrial concrete floors Holcim Canada offered the solutions for the Niagara Tunnel project in terms of innovative concrete... External + ROIC Market growth Combining these three levers of growth Holcim is able to capture the market growth, the growth coming from customer excellence and in addition the growth coming from cost leadership and efficiency improvements that together result in a considerable increase of ROIC Cheuvreux GCC 2013 © 2013 Holcim 25 Conclusion • Holcim s strategy has proven successful in the past and will . Strength. Performance. Passion. © 2013 Holcim Cheuvreux German Corporate Conference 2013 Bernhard A. Fuchs, Head Investor Relations John M. Feigl, Investor Relations Officer © 2013 Holcim © 2013. years 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. Resources Excellence Corporate Social Responsibility Sustainable Environmental Performance Creation of Value Mindsets Strategy Goal Base Product Focus Geographic Diversification Local Management Global Standards People Better Cost Management Permanent