© Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 Bernhard A. Fuchs – Head Investor Relations October 13 / 14, 2009 2 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Agenda 1 Holcim strategy and positioning 2 Attractiveness of Holcim’s business 3 Value creative expansion in Asia Pacific 4 Half-year 2009 results 5 Conclusions 3 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Holcim strategy - based on three pillars Product Focus Geographic Diversification Local Management Global Standards  Cementitious materials  Aggregates  Other construction materials & services (OCMS) Value creation – paramount objective of the strategy  Global presence  Balanced between mature and emer- ging markets  Balanced between and within regions  Global business – strongly anchored in local markets  Supported by global standards  Policies & directives  Exchange of know how & best practices 4 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Holcim Value Chain Transactional Mortars Ready-mix Concrete Asphalt Concrete Products Direct Sales Direct Sales Traders Wholesalers Retailers Traders Wholesalers Retailers End-users General Contractors Civil Engineering Channels Transformational Masons Self - builders Cementitious Materials (cement, mineral components) Supply Basic Materials Processing Aggregates (sand, gravel, stone, recycled aggregates) Infrastructure Commercial / Industrial Building Housing Demand A p p l i c a t i o n s Applications and Construction Fields 5 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Positioning – Holcim’s cement market portfolio -4% -2% 0% 2% 4% 6% 8% 10% 12% -1%0%1%2%3%4%5%6%7%8%9%10% 1 100% Cement Australia incl. capacity expansion to be commissioned in H2 2009 Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, June 2009 GDP per capita (at PPP) CAGR 08-13E Cumulated population growth 2008 - 2013E Mature markets Emerging markets Size of circles represents influenced capacity 2008 Western Europe 25.9 Mt Eastern Europe 23.1 Mt Africa Middle East 23.6 Mt North America 21.3 Mt India 44.6 Mt China 38.5 Mt Asia Pacific excl. India, Australia, China 47.4 Mt Latin America 39.0 Mt Demand growth Australia 5.1 Mt 1 6 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Holcim’s aggregate market portfolio -4% -2% 0% 2% 4% 6% 8% 10% 12% -1%0%1%2%3%4%5%6%7%8%9%10% Cumulated population growth 2008 - 2013E Western Europe 86.1 Mt Africa Middle East 2.7 Mt Latin America 13.4 Mt North America 49.3 Mt Asia 4.7 Mt GDP per capita (at PPP) CAGR 08-13E Mature markets Emerging markets Size of circles represents consolidated sales volumes 2008 Eastern Europe 11.5 Mt Demand growth 1 represents 100% Cemex Australia Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, June 2009 Australia 30.0 Mt 1 7 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 -1.7% -2.9% -0.1% -0.4% -2.3% 2.3% GDP Growth [%] (excl. China) World Mature Market Emerging Market 2009 Holcim World Mature Market Emerging Market GDP Growth weighted with Holcim EBITDA 2008 per country [%] (excl. China) 1.3% 0.1% 2.7% 2.0% 0.1% 4.4% 3.7% 2.9% 4.9% 4.6% 3.3% 6.4% 5.2% 4.2% 6.3% 6.1% 4.5% 8.1% 2010 2011 2012 Holcim generates its EBITDA in countries with GDP growth above average Holcim EBITDA 2008 split: Mature: 32% Emerging: 68% Source: Nominal GDP per Capita (at PPP) in USD: International Monetary Fund - World Economic Outlook Database (April 2009), US Census Bureau 8 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 1 Holcim strategy and positioning 2 Attractiveness of Holcim’s business 3 Value creative expansion in Asia Pacific 4 Half-year 2009 results 5 Conclusions Agenda 9 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Attractiveness of the heavy-side building materials  Housing and infrastructure are basic needs  Diverse customer base include private and public sector  Sustainable Development is our “license to operate” The demand drivers and characteristics of our products provide for continued growth and profitability 10 October 2009Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 The industry invests in physical assets  Own raw material reserves  Inflation hedge (real value)  Limited substitution potential  Products are not affected by short-term life-cycles  No process obsolescence risk  Plant and distribution network Investments in real assets offer long term value [...]... Transaction completed and consolidated as of October 1st 2009 14 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Attractive opportunities – The new setup of Holcim in Australia Holcim Australia 83 Agg plants 249 RMX plants 16 Pipe and precast plants Cement Australia 1 4 cement plants 1 grinding station 2 terminals Cement Australia Holcim Australia 1 Cement Australia... Buildings Conference 2009 October 2009 Positions in China Jiangsu Shaanxi Henan Anhui Sichuan Shanghai Hubei Wuhan r ve Ri e gtz an Y Shanghai Zhejiang Hunan Jiangxi Participation: Plant Grinding station / Terminal City 17 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Agenda 1 Holcim strategy and positioning 2 Attractiveness of Holcim s business 3 Value creative... Lynch – Buildings Conference 2009 October 2009 Agenda 1 Holcim strategy and positioning 2 Attractiveness of Holcim s business 3 Value creative expansion in Asia Pacific 4 Half-year 2009 results 5 Conclusions 22 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Conclusions The heavyside building materials industry is attractive for investments Large-scale, real value... strategy and positioning 2 Attractiveness of Holcim s business 3 Value creative expansion in Asia Pacific 4 Half-year 2009 results 5 Conclusions 13 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Australia – an attractive opportunity to execute on our core strategy in a growing mature market Expand our business by creating a fully integrated position in a growing... expansion in Asia Pacific 4 Half-year 2009 results 5 Conclusions 18 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Highlights Half-Year 2009 Due to its strong presence in growth markets, Holcim performed well in a difficult economic market environment and significantly increased its cash flow Robust organic growth in Asia Pacific, Latin America and Africa Middle... 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 24 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Contact information and event calendar Contact information... Australia is 75% owned by Holcim and 25% by HeidelbergCement © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 15 October 2009 China – Holcim s successful partnership with Huaxin Cement Huaxin is a leading supplier of Clinker & cement Ready-mix & aggregates Environmental solutions Cement plant manufacturing equipment Sustainable cement capacity growth of 26% p .a over the last... Europe and the US, while initial funding has made its way into the economy, programs will have gradual impact on demand over the next year Impact on demand for building materials is seen in China India’s estimated budget of USD 500 billion on infrastructure to be spent over five years is showing signs 12 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 Agenda 1 Holcim. .. to be an enabling factor 23 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 October 2009 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... years Vertical integration into the ready-mix segment is growing Alternative fuels program initiated Focus on operational performance and energy efficiency including product differentiation Implementation of Holcim standard programs in the area of accounting including SAP Timing of the transaction depends on the response of authorities involved 16 © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings . © Holcim Ltd 2009 Bank of America Merrill Lynch – Buildings Conference 2009 Bernhard A. Fuchs – Head Investor Relations October 13 / 14, 2009 2 October 200 9Bank of America Merrill Lynch – Buildings. Mt North America 21.3 Mt India 44.6 Mt China 38.5 Mt Asia Pacific excl. India, Australia, China 47.4 Mt Latin America 39.0 Mt Demand growth Australia 5.1 Mt 1 6 October 200 9Bank of America Merrill Lynch. Exchange of know how & best practices 4 October 200 9Bank of America Merrill Lynch – Buildings Conference 2009 © Holcim Ltd 2009 Holcim Value Chain Transactional Mortars Ready-mix Concrete Asphalt Concrete