© Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Concentrate on what we can influence Markus Akermann – CEO Holcim Group St. Louis, September 14, 2010 2 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 • We cannot jump start the economy, but we have adjusted cost and structures to be fit for the upswing • Leaner structures, the current asset base and the commissioning pipeline will generate substantially higher cash flow • De-commoditization and differentiation of our core products enhance relationship with our customers – we are winning more businesses with higher value • Our superior positions in emerging markets allow us to further expand our cement asset base • Strong Balance Sheet for capturing M&A growth • A performance driven culture combined with talent management and a strong succession pipeline is the base for continuous success Executive Summary – concentrate on what we can influence 3 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 Superior strategy in our markets 2 Value added solutions for our customers 3 Global portfolio geared to growth 4 Performance driven management teams 4 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Our portfolio strength allows us to continue our expansion and acquisition plans through the economic cycle • Growth in emerging markets, above all Asia • Manage margins and cash flow with austerity program  Fixed costs reductions of > CHF 850 million  Strict capex austerity  Capacity re-balancing (mothballing/closure of 23 out of 150 kilns and > 100 ready-mix concrete and aggregates plants) • Execute expansion plans and acquisition moves  Continued the expansion program in growth markets  Acquired the Australia business  Significantly strengthened our financial position 5 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Strong cash flow is proof of management’s agility and cohesion LFL variance 2009/08 Fixed costs reductions Focus on price NWC Management CAPEX austerity Asset Reduction Program (ARP) Net Sales Op. EBITDA -5.1% 32.4% 11.5% -10.0% CF from operations Free op. CF 6 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 140 85 523 543 500 559 209 186 1072 873 Op. EBITDA in million CHF 6M 2009 6M 2010 15.5% 15.1% 6M 2009 6M 2010 Group op. EBITDA 2,143 2,343 Group margin 21.3% 21.5% 5.9% 10.0% 32.4% 30.3% 30.0% 35.0% 28.4% 25.5% Group performance stable and margins improved in first-half 2010 also due to continuous focus on austerity 7 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 In the near term, Holcim’s performance driven by emerging markets, with our strong portfolio positions in Asia • Global GDP growth expected to be ~3% • Most emerging economies are expected to grow GDP by >5%, some even >8% (e.g. India) • Slow market recovery, particularly in the US and parts of Europe Global economic outlook Source: IMF as per July 2010, Holcim estimates Cement market demand outlook • Emerging economies grow ~5% • Some showing >10% regionally (e.g. Brazil, Philippines, India, Indonesia) • Mature economies flat to slightly positive 8 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 17.3 3.7 15.5 4.2 3.4 5.8 1.3 4.7 3.4 21.5 6.5 21.4 6.4 5.8 7.1 2.9 11.7 6.5 Western Europe Eastern Europe North America South & Central America Middle East & Africa Asia Pacific ('developed') India China Asia Pacific ('emerging') 1.9 0.5 1.5 0.5 0.4 0.8 0.2 1.0 0.8 2.3 0.9 2.5 0.8 0.8 0.9 0.6 2.4 1.5 138 56 87 105 132 195 156 168 82 119 161 222 447 300 1'574 55 1'656 69 2009 2020 Note (1): China cement consumption per capita kept at 2009 level, but growing with population. Note (2): Western Europe = FR, DE, IT, GR, ES, UK / Eastern Europe = BU, CZ, HU, RO, RU, / North America = CA, USA / South America = AG, BR, CL, CO / Real GDP (USD tn, 2009-2020) 1'656 Construction Spending (USD tn, 2009-2020) Cement Consumption (Mt, 2009-2020) 2.0% 5.2% 2.9% 3.9% 4.8% 2.0% 7.8% 8.6% 6.1% 1.7% 6.7% 4.4% 5.0% 5.7% 1.6% 9.2% 8.0% 6.5% CAGR CAGR 1.8% 3.4% 2.9% 3.9% 4.8% 2.0% 7.8% 0.5% 6.1% CAGR A sia Pacific (developed) = AU, JP / Asia Pacific (developing) = ID, PH, KR, TH, VN / Africa-Middle East = EG, MA, NG, SA, ZA, AE Longer term, emerging market dynamics and recovery of construction activity in mature markets drive demand Source: Construction Perspectives and Oxford Economics, United Nations World Population Prospects, Holcim estimates 9 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Holcim‘s strategy has been validated during the recent turbulences and remains the right blueprint for the future • Value added solutions for our customers • Superior portfolio and local positioning to capture growth opportunities • Competent local management teams around the world with a shared vision how to develop the business 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 Consistent execution of our strategy is the formula for growth and value creation! 10 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 Superior strategy in our markets 2 Value added solutions for our customers 3 Global portfolio geared to growth 4 Performance driven management teams [...]... roller Transfer HGRS to Bardon Concrete (UK), Demix (Canada), Holcim Apasco (Mexico) and Minetti (Argentina) HGRS – Holcim Group Support © Holcim Ltd 2010 15 Investor / Analyst Capital Markets Event 2010 Providing innovative solutions to the market based on collaboration from R&D to the field and on close cooperation with external partners • CEMROC® – concrete with minimum carbon footprint and unique durability... acquisitions Europe – additional CHF 1 billion op EBITDA US – additional CHF 500 million op EBITDA • In recovery, Europe and the US will deliver substantial additional op EBITDA & FCF • Both regions have the substance to double their op EBITDA contribution to the Group • Based on stream-lined operations and leaner structures B/S – Balance sheet © Holcim Ltd 2010 18 Investor / Analyst Capital Markets Event 2010. .. excellence Operational performance in Ready-mix Concrete drives margins Key Performance Improvement Products & Services Methodology: Concrete Operational Review MARKET & SALES DISTRIBUTION PRODUCTION CONCRETE TECHNOLOGY Consumption Centre Consumption Centre Plant Level Plant Level Strategy Implementation and Market Positioning Maximizing Fleet Efficiency, Resources and Productivity Maximize Operational Efficiency/Productivity... Corporate Social Responsibility 33 Investor / Analyst Capital Markets Event 2010 Contact information Bernhard A Fuchs Marco Knuchel Binit Sanghvi 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 34 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Disclaimer Cautionary statement regarding... Drivers for construction are urbanization & infrastructure • Sharpen our front-end skills and understand what our customers and our customer‘s customers really need • Product innovation & value added services have to be geared to this end • As solution provider we can differentiate & create value 24 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Customers needs and our position in the... dealers and retailers based on real time information (application on mobile phones) 13 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Examples of service solutions – offer superior customer satisfaction • Ceneri Base Tunnel (Holcim Switzerland) 0.4m t cement 2 m t aggregates 1.1m m3 ready-mix concrete Full service provider of Cement, Aggregates and Ready-mix Concrete, logistics, material... treatment and tech lab on site • Nord Stream project (Holcim Germany) Product and individual logistic delivery solution are perfectly meeting customer needs • Petrobras office building in Espirito Santo (Holcim Brazil) Special mix design RMX for pre-cast concrete parts Self-leveling concrete Technical support supplied by Holcim along the entire construction chain 14 © Holcim Ltd 2010 Investor / Analyst... Cementitious Materials (cement, mineral components) Channels Transactional Transformational Direct Sales Ready -mix Concrete Traders Concrete Products General Contractors Masons, Self- builders Wholesalers Mortars Aggregates Retailers (sand, gravel, stone, recycled aggregates) Demand Applications and Construction Fields End - users Asphalt Civil engineering contractors A p p l i c a t i o n s Housing... value for them … and us 11 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Example of sustainable solution provider – Aggregate Industries UK London Olympics 2012 “The Sustainable Games” • AI UK won tender for up to 1.5 million t AGG and 0.9 million m3 RMX • Tailored solutions provided to meet strict environmental customer requirements: 20-25% recycled content for AGG & RMX 50% sustainable... ton of aggregates is not enough – we focus on differentiation and de-commoditization Sao Paulo Tailor-made solutions for each job N America, UK Mumbai France, Spain Value Added businesses Eastern Europe Aggregates Mexico India Ready-mix concrete Cement Emerging markets Transition markets Mature markets Market maturity Value Added Solution Evolution Mexico City Added value through business integration . © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Concentrate on what we can influence Markus Akermann – CEO Holcim Group St. Louis, September 14, 2010 2 © Holcim Ltd 2010 Investor. Executive Summary – concentrate on what we can influence 3 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 Superior strategy in our markets 2 Value added solutions for our customers 3 Global. and retailers based on real time information (application on mobile phones) 14 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Examples of service solutions – offer superior