Third quarter results and outlook for 2006 holcim

Key facts at a glanceƒ Higher sales in all Group regions and segments ƒ Price increases, efficiency gains and expanded scope of consolidation strengthen results ƒ Higher energy costs an

Third quarter results and outlook for 2006

Key facts at a glance

ƒ Higher sales in all Group regions and segments

ƒ Price increases, efficiency gains and expanded

scope of consolidation strengthen results

ƒ Higher energy costs and competitive pressure in

some markets have been largely offset

ƒ Internal and external growth produce record results

ƒ Holcim again "Leader of the Industry" in the Dow

Jones Sustainability Index 2006/07

Dynamic growth in key Group markets enables

capacity expansion in cement

Latin America

ƒ Robust economy supports construction industry

ƒ Encouraging order situation in western and southeastern Europe

Europe

Positions in Europe

Cement plantGrinding plant/terminalAggregates

Participation:

Cement plant

1 1

1

1

Facts on Europe

ƒ Higher volumes in all segments

ƒ Cement sales rising, in particular in France, Benelux, and

southeastern Europe

ƒ Aggregate Industries UK lifts sales of aggregates and mix concrete

ready-ƒ Group companies showed significant improvement in results

ƒ Operating EBITDA up by 16.8 percent to CHF 1.464 billion

ƒ Internal operating EBITDA growth at 9.5 percent

ƒ Economic environment largely sound

ƒ Housing construction cooling visibly

North America

Positions in North America

1

Cement plantGrinding plant/terminalAggregates

1 Under construction

1

Facts on North America

ƒ Slight increase in cement sales

ƒ Cement, clinker and granulated blast furnace slag again had to

be imported to cover demand

ƒ Sales of aggregates and ready-mix concrete higher thanks to additions to the scope of consolidation

ƒ Better prices in all market regions

ƒ Operating EBITDA up by 15.1 percent to CHF 776 million

ƒ Internal operating EBITDA growth at 14.6 percent

ƒ Economic upswing continues unbroken

ƒ Housing construction robust and infrastructure expanded further

Latin America

Positions in Latin America

Facts on Latin America

ƒ Higher sales in all segments

ƒ Strong volume increases at Holcim Apasco in Mexico

and Holcim Brazil

ƒ Strong results increase in Mexico, El Salvador, Ecuador and Colombia/Venezuela

ƒ Operating EBITDA up by 13 percent to CHF 955 million

ƒ Internal operating EBITDA growth at 10.5 percent

Africa Middle East

ƒ Construction activity robust in Morocco and South Africa

ƒ Building activity recovered fast in Lebanon after end of hostilities

Positions in Africa Middle East

Facts on Africa Middle East

ƒ With the exception of Holcim Lebanon, all Group

companies lifted domestic sales

ƒ Morocco and South Africa reported very good sales trend

ƒ With the exception of Holcim Lebanon, all Group

companies contributed to the improved financial result

ƒ Significant 8 percent increase in operating EBITDA to CHF 512 million

ƒ Internal operating EBITDA growth at 10.5 percent

ƒ Strong growth of Indian construction industry

ƒ Restrained building activity in Thailand, the Philippines and Indonesia

Asia Pacific

Positions in Asia Pacific

1

1 1

Cement plantGrinding plant/terminalAggregates

Participation:

Grinding plant/terminal

Facts on Asia Pacific

ƒ Group region strengthened by acquisitions in India

ƒ Cement sales volumes increasing in India, Sri Lanka, Bangladesh, Malaysia and Singapore

ƒ The inclusion of India and a stronger presence in

major urban centers bolsters ready-mix concrete

sales

million on generally stable prices

ƒ Internal operating EBITDA growth at 0.2 percent

+/-Key financial figures

Major changes in the scope of consolidation

Effective as at

+/– Various smaller companies

1 LATAM Basket (MXN, BRL, ARS, CLP) 1 0.97 1.00 1.05 5.0%

1 African Basket (EGP, ZAR, MAD) 1 0.99 1.00 1.00 0.0%

1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 1.03 1.00 1.05 5.0%

Sales of cement by region

13.7 13.5

13.2

24.7 24.0

23.6

39.4

21.9 19.1

11.3 11.2

10.6

19.5 15.4 17.6

Total Group 9M 2004 77.3 9M 2005 83.0 9M 2006 103.8 Million t

Sales of aggregates by region

15.3

69.6 58.8

43.9

2.3 2.4

3.3

8.4 7.3

6.8

9.7

Total Group 9M 2004 78.5 9M 2005 122.3 9M 2006 138.0 Million t

Sales of ready-mix concrete and asphalt

Net sales by region

4110 3349

1932

2750 2294

1459

9M 2004 9M 2005 9M 2006 Million CHF

North America 22.8%

Europe 34.9%

Asia Pacific 18.5%

Africa Middle East

8.6%

Latin America 15.2%

Net sales by region

Net sales 9M 2006

Operating EBITDA by region

674

955 845

353

933

421 373

9M 2004* 9M 2005 9M 2006 Million CHF

Million CHF

Operating profit by region

765 657

602

1058 923

626

445 411

286

645

276 198

9M 2004* 9M 2005 9M 2006

272

Group net income

1,950

1,362 872

1,505 1,153

Cash flow statement

Net investments to maintain productive

+/-Financing

Net financial debt Total shareholders' equity Gearing

EBITDA net interest coverage 5.9 6.0 6.4

Financial position

EBITDA margin targets per segment in future

ƒ Growth strategy in Asia and expansion in the Aggregates and Other Construction Materials and Services segments lead to individual margin targets

ƒ The new operating EBITDA margin targets are aimed at

sustainably exceeding the weighted average costs of capital (WACC) of 8 percent after tax.

ƒ The new operating EBITDA margin targets are:

 33 percent for Cement and Mineral Components

 27 percent for the Aggregates segment

 8 percent for Other Construction Materials and

Operating EBITDA margin target by segment

Cement and Mineral

Outlook for 2006

In the 2006 business year, internal operating EBITDA growth will substantially exceed the long-term average

of 5 percent

Cement – Price/volume variances per region

Domestic cement prices

Domestic cement prices

Cement – Price/volume variances per region

Africa Middle East

Domestic cement prices

Cement – Price/volume variances per region

Domestic cement prices

Cement – Price/volume variances per region

Contact information and event calendar

Conferences for press and analysts

November 7, 2007 Third quarter results 2007

Conferences for press and analysts

Strength Performance Passion.