Third quarter results and outlook for 2004 Strength. Performance. Passion. Key facts at a glance Solid internal growth outweighs rising energy prices and partly weaker Group currencies. Thanks to strong positions in growth markets, sales volumes were up across all segments in all five Group regions. Efficiency-enhancing measures in sales, administration and production are taking hold. Stronger operating result and further margin improvements confirm that Holcim continues to stay on the road to success. Above-average increase in consolidated net income after minority interests. 2 3Q 2004 1 Europe Ongoing progress in third quarter. Except for Germany, strong construction activity in Western Europe. Encouraging development in Southeast Europe, too. New kiln line at the Alesd plant (Romania) 3 3Q 2004 Facts on Europe Higher deliveries across all segments. In Western Europe, Holcim reports impressive increase in cement sales in Spain, and deliveries are higher in Switzerland, too. In a still difficult market, Holcim Germany lifts turnover thanks to improved prices. We achieve above-average growth rates in Bulgaria and Romania. Our Russian Group company’s sales are positively impacted by the construction boom in the Greater Moscow region. Consolidated operating profit in Europe grew by 20.7 percent to CHF 577 million. 4 3Q 2004 2 Operations in Europe Group: Cement plant Grinding plant Terminal Grinding plant under construction Participation: Cement plant Cement capacity Group (Europe): 44.7 million t; further 1.0 million t with partners. 5 3Q 2004 North America Continued dynamic growth in the construction sector. Strong demand on the back of private residential construction and modernization work on the transport infrastructure. Cement still being imported despite new capacity. New kiln line at the Holly Hill plant (USA) 6 3Q 2004 3 Facts on North America Holcim US and St. Lawrence Cement achieved higher sales volumes. In financial terms, both companies made considerable progress. Increased productivity largely helped cushion the impact of rising energy costs. Despite a weak US dollar, Group region North America posted a 35.2 percent increase in operating profit to CHF 242 million. 7 3Q 2004 Operations in North America Cement plant Grinding plant Terminal Cement plant (project) Cement capacity Group (North America): 21.3 million t. 8 3Q 2004 4 Latin America Solid construction activity. Cement demand sound in most markets. Brazilian and Chilean construction markets regained momentum. Marked upsurge, especially in Argentina, Venezuela and Ecuador. New kiln line at the Cartago plant (Costa Rica) 9 3Q 2004 Facts on Latin America In Latin America delivery volumes increased in all segments. Group companies in Mexico and Central America also performed well. Argentina, Venezuela and Ecuador posted the biggest increases in cement deliveries. In Mexico Holcim Apasco lifted sales of ready-mix concrete very significantly. Steps taken early to increase efficiency largely countered heightened competitive pressure and rising energy prices. Despite a weaker USD, operating profit in Group region Latin America declined by only 5.7 percent to CHF 559 million. 10 3Q 2004 5 Operations in Latin America Group: Cement plant Grinding plant Terminal Participation: Cement plant Grinding plant Terminal Cement capacity Group (Latin America): 31.0 million t; further 9.5 million t with partners. 11 3Q 2004 Africa Middle East Lively construction activity, despite different growth pattern across regions. Growth driven by road network expansion projects and an upturn in new housing starts. Especially in South Africa high construction investment outlays. Modernized kiln line at Dudfield (South Africa) 12 3Q 2004 6 Facts on Africa Middle East All Group companies increased cement deliveries. Ready-mix concrete sales volumes were also encouraging. Group companies in Egypt and Lebanon benefited from an increase in export contracts. Group companies in West and Southern Africa also showed a good performance. With the exception of Holcim Morocco, all Group companies improved their performance. Group region Africa Middle East lifted operating profit by 29.3 percent to CHF 269 million. 13 3Q 2004 Operations in Africa Middle East Group: Cement plant Grinding plant Terminal Participation: Cement plant Grinding plant Terminal Cement capacity Group (Africa Middle East): 12.9 million t; further 5.1 million t with partners. 14 3Q 2004 7 Asia Pacific Economies sound in Asia, Australia and New Zealand. Housing construction and transport infrastructure expansion the main growth drivers. The winners in the construction sector include Thailand, the Philippines and Vietnam. Grinding plant and terminal at Cat Lai (Vietnam) 15 3Q 2004 Facts on Asia Pacific Consolidated cement sales in Asia Pacific have gone up substantially. The largest volume increases were posted by Group companies in Thailand, the Philippines and Vietnam. In financial terms, the strongest improvements were achieved by our companies in the Philippines, Thailand and New Zealand. Group region Asia Pacific increased operating profit by 23.8 percent to CHF 187 million. 16 3Q 2004 8 Operations in Asia Pacific Group: Cement plant Grinding plant Terminal Participation: Cement plant Grinding plant Terminal Cement capacity Group (Asia Pacific): 36.0 million t; further 18.4 million t with partners. 17 3Q 2004 Key financial figures Full Year +/- 2003 2003 2004 in CHF in loc. curr. Net sales 12'600 9'395 10'017 6.6% 8.8% Operating EBITDA 3'311 2'537 2'792 10.1% 13.1% Operating profit 1'925 1'550 1'787 15.3% 18.6% Group net income after minority interests 686 518 691 33.4% 39.1% Cash flow from operating activities 2'619 1'527 1'669 9.3% 11.8% EPS in CHF 3.51 2.65 3.33 25.7% 31.1% Cash EPS in CHF 1 4.96 3.81 4.51 18.4% 22.4% 1 Excludes the amortization of goodwill and other intangible assets 18 3Q 2004 9 Million CHF 9 Months Balance sheet exchange rates in 30.9.03 31.12.03 30.9.04 +/- 1 EUR 1.54 1.56 1.55 -0.6% 1 USD 1.32 1.24 1.26 1.6% 1 African Basket (EGP, ZAR, MAD) 2 1.02 1.00 1.03 3.0% 1 Asian Basket (AUD, NZD, THB, PHP) 2 1.02 1.00 0.99 -1.0% Statement of income average exchange 9M 02 9M 03 9M 04 +/- 1 EUR 1.47 1.51 1.55 2.6% 1 USD 1.59 1.36 1.27 -6.6% 1 African Basket (EGP, ZAR, MAD) 1 0.98 1.00 1.04 4.0% 1 Asian Basket (AUD, NZD, THB, PHP) 1 1.09 1.00 1.00 0.0% Effective as at Cement capacity + Proportionate consolidation of Cement Australia (integration of Queensland Cement) June 1, 2003 – – Eternit AG, Switzerland November 10, 2003 – + Alpha Cement, Russia December 31, 2003 4.3 million t + Rohrbach Zement / – Geisingen January 1, 2004 – +/– Various smaller companies Major changes in the scope of consolidation 19 3Q 2004 2 weighted by net sales full year 2003 20 3Q 2004 10 Exchange rates 1 weighted by net sales 9 months 2003 [...]... investor.relations @holcim. com www .holcim. com/investors May 2, 2005 First quarter results 2005 May 3, 2005 General Meeting of Shareholders May 6, 2005 Dividend payment August 18, 2005 Half-year results 2005 November 9, 2005 Third quarter results 2005 Conference for press and analysts Mailing list: www .holcim. com/subscribe Annual results 2004 Conference for press and analysts 37 3Q 2004 19 ... expect the annual forecast of 8 percent internal growth on the operating profit level to be clearly exceeded The positive development in the Group’s operating EBITDA margin is likely to continue 35 3Q 2004 Strength Performance Passion 36 3Q 2004 18 Contact information and event calendar Contact information Corporate Communications Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications @holcim. com Event... securities 30 and cash equivalents -99 Financial position 94.3% 87.4% 70.9% 10'891 9'695 9'144 30.09.2003 Equity in million CHF 9'499 8'299 31.12.2003 Net financial debt in million CHF 7'726 30.09 .2004 Gearing 34 3Q 2004 17 Outlook for 2004 Substantial operating progress in Europe Improved market environment in North America Robust performance in Latin America Encouraging results in Africa Middle East and Asia... 9M 2002 9M 2003 21.9 + 11.2% 9M 2004 22 3Q 2004 11 Net sales Million CHF 9'928 Volume/price Change in structure Forex movements Total change -12 319 -680 -373 10'017 9'395 -0.1% 3.1% -6.6% -3.6% 9M 2002 39 71 -643 -533 0.4% 0.7% -6.5% -5.4% 9M 2003 732 98 -208 622 7.8% 1.0% -2.2% 6.6% 23 9M 2004 3Q 2004 Net sales by region Million CHF 1'844 3'343 9 months 2003 9 months 2004 1'932 921 2'136 3'631 2'177... -3.3% 17.1% 1.5% -3.3% Total 20.7% 35.2% -5.7% 29.3% 23.8% 15.3% 29 3Q 2004 Group net income Before minority interests in million CHF After minority interests in million CHF 877 +21.3% 727 723 -6.0% -0.6% 691 +33.4% 514 518 -16.2% +0.8% 9M 2002 9M 2003 9M 2004 30 3Q 2004 Cash flow from operating activities Million C HF 9 Months +/- 2003 2004 1'527 1'669 9.3% -510 -415 -18.6% 1'017 1'254 23.3% -323 -238... 3.2% 2.0% -8.2% -3.0% 302 11.9% 30 1.2% -77 -3.0% 255 10.1% 26 9M 2002 9M 2003 9M 2004 3Q 2004 13 EBITDA Margin Million CHF 27.4% 2'719 28.2% 27.6% 2'597 - 1.0% 2'820 + 8.6% - 4.5% 9M 2002 9M 2003 9M 2004 27 3Q 2004 Operating profit Margin Million CHF 17.8% 15.7% 16.5% 1'787 1'559 Volume/price/cost Change in structure Forex movements Total change 132 -8 -118 6 8.5% -0.5% -7.6% 0.4% 9M 2002 1'550 97...Cement and clinker sales volumes by region Million t 9 months 2003 9 months 2004 23.6 13.2 20.0 12.6 17.6 19.1 10.6 9.5 15.4 ∆ 9M 03/9M 04 14.3 Volume Change in 2.5% 4.8% 7.7% 11.4% 8.3% 5.0% structure 15.5% 0.0% 0.0% 0.2% 0.2% 4.6% Total Europe North America Latin America Africa Middle East Asia Pacific Total 18.0% 4.8% 7.7% 11.6% 8.5% 9.6% 21 3Q 2004 Sales volumes aggregates and ready-mix... -0.2% -3.8% Total 7.8% 1.0% -2.2% 1'459 Total 8.6% 4.8% 1.9% 23.9% 11.5% 6.6% 24 3Q 2004 12 Net sales by region Sales 9 months 2004 Europe 35% North America 19% Latin America 21% Asia Pacific 14% Africa Middle East 11% 25 3Q 2004 Operating EBITDA Million CHF Margin 26.3% 2'616 Volume/price/cost Change in structure Forex movements Total change 183 53 -185 51 7.1% 2.1% -7.2% 2.0% 27.0% 27.9% 2'792 2'537... 521.0% 17.4% 1'732 16.3% 16.7% 1'669 1'527 Volume/price/cost Change in structure Forex mov 363 37 25.0% 2.6% 9 Months -141 -8.1% 55 3.2% ements +/- 2003 2004 -124 -770 - 1'456 4 -555 -22 10.4% 1.4% -7.9% -6.9% -2.5% 19.7% 31 -11.8% 9.3% -48 661 158 22 -115 -119 -38 285 -205 142 44 Total chan 521.0% ge 9M 2002 9M 2004 9M 2003 3Q 2004 519 127 -75.5% Cash flow statement Investments to maintain productive Million... flow from operating activities 2'619 32 capacity and to secure competitiveness -802 Free cash flow 1'817 Expansion investments -490 3Q 2004 Financial investments net 442 - Dividends paid 368 - Financing surplus (requirement) Financing 517 16 (De)Increase in cash Million CHF Full Year 2003 Financing surplus (requirement) 517 Capital paid-in 33 26 3Q 2004 Movements of treasury shares net 4 (De)Increase . Third quarter results and outlook for 2004 Strength. Performance. Passion. Key facts at a glance Solid internal growth outweighs rising energy prices and partly weaker Group. 19 investor.relations @holcim. com www .holcim. com/investors Mailing list: www .holcim. com/subscribe Event calendar March 2, 2005 Annual results 2004 Conference for press and analysts May 2, 2005 First quarter results. 2004 Strength. Performance. Passion. 36 3Q 2004 18 Contact information and event calendar Contact information Corporate Communications Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications @holcim. com Investor