©2008 Holcim Ltd/Switzerland Third quarter results and outlook for 2008 1 3rd quarter of 2008©2008 Holcim Ltd/Switzerland Overview: Further slowdown in third quarter y Turbulence in financial sector slowing down real economy y Inflation and surge in cost of energy and resources y Differing regional economic developments y Strong Swiss franc hurts income statement y Satisfactory results despite difficult environment y Measures to further improve efficiency 2 3rd quarter of 2008©2008 Holcim Ltd/Switzerland Operating EBITDA growth tampered by a few important markets Diversification helps to mitigate negative EBITDA contributions Change in internal growth USA/UK: Recession -350  Downsizing, plant closures  Efficiency improvements  Pass on costs Spain: Recession -140  Downsizing, plant closures  Efficiency improvements  Pass on costs India: Price/Cost -110  Continued volume growth  Efficiency improvements  Pass on costs -276 +324 -600 -110 -140 -350 -5%Change in operating EBITDA India +6%All other Holcim countries -11%Total Spain USA/UK 9 months 2008 vs 2007, like-for-like in million CHF 3 3rd quarter of 2008©2008 Holcim Ltd/Switzerland Europe: Slowdown in construction activity y Marked declines in the UK and Spain y Rest of western and central Europe has held up well y Eastern and southeastern Europe remain strong y Increase in energy costs partially offset y Slightly declining operating EBITDA y Planned closure of Torredonjimeno plant in Spain 4 3rd quarter of 2008©2008 Holcim Ltd/Switzerland North America: Declining construction activity y US residential tumbling – infrastructure held up y Slowdown in growth in Canada too y Cement production scaled back at some US plants y Sales of aggregates down; sales of concrete rising y Sharp decrease in operating EBITDA y Planned closure of the Dundee and Clarksville plants in the USA 5 3rd quarter of 2008©2008 Holcim Ltd/Switzerland y Support from residential and infrastructure construction y Rising sales across all segments y Higher-than-average rise in ready-mix concrete y High energy costs and unfavorable exchange rates y Strong internal operating EBITDA growth Latin America: Robust building materials demand 6 3rd quarter of 2008©2008 Holcim Ltd/Switzerland Africa Middle East: Strong construction markets y Mainly impulses from residential construction y South Africa and Egypt no longer consolidated y Higher like-for-like sales volumes across the board y New Settat plant making key contribution to results y Gratifying internal operating EBITDA growth 7 3rd quarter of 2008©2008 Holcim Ltd/Switzerland y Building materials demand high; falling market momentum y Rising sales across all segments y Margins squeezed by inflation-related surge in costs y Less room for maneuver in adjusting prices in India y Decline in operating EBITDA Asia Pacific: Good capacity utilization in construction 8 3rd quarter of 2008©2008 Holcim Ltd/Switzerland Key financial figures 2007 2007 2008 LFL CIS FX in CHF Net sales 27,052 20,286 19,340 6.6% -1.7% -9.6% -4.7% Operating EBITDA 6,930 5,340 4,365 -5.2% -4.7% -8.4% -18.3% Operating profit 5,024 3,961 3,087 -7.9% -6.3% -7.9% -22.1% Net income 4,545 1 3,857 1 2,107 -38.6% 1 -2.1% -4.7% -45.4% Cash flow from operating activities 5,323 3,260 1,658 -42.6% -2.3% -4.2% -49.1% 14.86 12.73 6.63 -47.9% 10.02 3 7.87 3 -15.8% EPS in CHF 2 Million CHF 9 Months +/- in %Full Year 1 Including a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million and a special dividend of CHF 150 million, net. Like- for-like and excluding the onetime effects of the previous year net income declined by -8.8% 2 Calculated on the weighted average number of shares outstanding 3 Excluding the non-recurring capital gain on the sale of a stake in Holcim South Africa 9 3rd quarter of 2008©2008 Holcim Ltd/Switzerland Major changes in the scope of consolidation Effective as at – Holcim South Africa June 5, 2007 – Egyptian Cement Company January 23, 2008 + Tarmac Iberia September 1, 2008 +/– Various smaller companies [...]... 2009 Annual results 2008 Conferences for press and analysts May 6, 2009 First quarter results 2009 May 7, 2009 Annual General Meeting May 12, 2009 Dividend payment (ex date) August 20, 2009 Half-year results 2009 November 11, 2009 Third quarter results 2009 Conferences for press and analysts Mailing list: www .holcim. com/subscribe 33 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Strength Performance... 2007 10.3 -1.9% 9M 2008 13 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Net sales Million CHF 20,286 19,340 17,514 Like -for- Like (LFL) Change in structure Forex movements Total change 1,209 9.0% 2,536 18.9% 344 2.6% 4,089 30.5% 1,511 8.6% 892 5.1% 369 2.1% 2,772 15.8% 1,340 6.6% -348 -1.7% -1,938 -9.6% -946 -4.7% 9M 2006 9M 2007 9M 2008 14 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Net sales... cash equivalents 186.7% n.a 24 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Financial position Million CHF Net financial debt Total shareholders' equity Gearing 66.7% 77.7% 58.7% 21,945 21,745 14,509 30.09.2007 20,449 15,881 12,873 31.12.2007 30.09 .2008 25 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Financial debt, maturity and liquidity as of September 30, 2008 Maturity profile (billion CHF)... 20 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Net income Million CHF Net income Net income - equity holders of Holcim Ltd 3,857 3,300 +97.8% 2,107 1,950 1,505 -45.4% +43.2% -47.3% +30.5% 9M 2006 1 1,739 +119.3% 9M 2007 1 Including a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million and a special dividend of CHF 150 million, net 2008 Holcim Ltd/ Switzerland 9M 2008. .. 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Operating profit Margin Million CHF 18.7% 19.5% 1 16.9% 16.0% 3,961 3,281 Like -for- Like (LFL) Change in structure Forex movements Total change 3,087 Margin on a like -for- like basis 2008 Holcim Ltd/ Switzerland 528 16.1% 100 3.0% 52 1.6% 680 20.7% -313 -250 -311 -874 9M 2006 1 336 13.0% 316 12.3% 53 2.1% 705 27.4% -7.9% -6.3% -7.9% -22.1% 9M 2007 9M 2008. .. by region Net sales 9M 2008 North America 16.8% Latin America 15.8% Europe 39.5% Asia Pacific 22.9% Africa Middle East 5.0% 16 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Operating EBITDA Margin Million CHF 25.6% 26.3% 1 5,340 4,489 Like -for- Like (LFL) Change in structure Forex movements Total change 23.4% 22.6% 4,365 Margin on a like -for- like basis 2008 Holcim Ltd/ Switzerland 586 13.1% 185 4.1%... O N D J F M A 2008 1 M J J A S D BBB+ LT stable Moody’s Credit Rating: Baa1 LT stable 2009 Liquidity II =Cash + marketable securities Liquidity III =Liquidity II + unused committed credit lines 2008 Holcim Ltd/ Switzerland O N BBB+ LT stable Fitch Credit Rating: 0.1 26 3rd quarter of 2008 Outlook for 2008: Holcim well positioned Against the backdrop of a slowing global economy, Holcim forecasts that... calculation based on local currencies 2008 Holcim Ltd/ Switzerland 1 1 1 1 1 1 1 Calculation in USD 30 3rd quarter of 2008 Cement – Price/volume variances per region Domestic cement prices +/- 9M 07/9M 08 * Africa Middle East Morocco Lebanon Indian Ocean * If not otherwise indicated calculation based on local currencies 2008 Holcim Ltd/ Switzerland 7.2% 18.6% 6.1% Domestic clinker and cement volumes +/- 9M 07/9M... costs, will continue to weaken in the fourth quarter 27 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Prepared for a difficult economic environment Uncertain medium and long-term market forecasts Cost management tremendously important Increased efficiency Safeguarding margins in shrinking markets Demand-related capacity adjustments Temporary production halt and selected plant closures Necessary adjustment... Ltd/ Switzerland 9M 2008 21 3rd quarter of 2008 Cash flow from operating activities Margin Million CHF 13.4% 16.1% 8.6% 3,260 2,348 Like -for- Like (LFL) Change in structure Forex movements Total change 377 90 17 484 20.3% 4.8% 0.9% 26.0% 9M 2006 807 34.3% 46 2.0% 59 2.5% 912 38.8% 9M 2007 1,658 -1,389 -42.6% -74 -2.3% -139 -4.2% -1,602 -49.1% 9M 2008 22 2008 Holcim Ltd/ Switzerland 3rd quarter of 2008 Cash flow statement . 2008 Holcim Ltd/ Switzerland Third quarter results and outlook for 2008 1 3rd quarter of 2008 2008 Holcim Ltd/ Switzerland Overview: Further slowdown in third quarter y Turbulence. EBITDA India +6%All other Holcim countries -11%Total Spain USA/UK 9 months 2008 vs 2007, like -for- like in million CHF 3 3rd quarter of 2008 2008 Holcim Ltd/ Switzerland Europe: Slowdown in construction. at – Holcim South Africa June 5, 2007 – Egyptian Cement Company January 23, 2008 + Tarmac Iberia September 1, 2008 +/– Various smaller companies 10 3rd quarter of 2008 2008 Holcim Ltd/ Switzerland Exchange