bank of america merrill lynch pan european building infrastructure conference london october 9 2013 holcim strength performance passion

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Bank of America Merrill Lynch

Pan-European Building & Infrastructure Conference

London, October 9, 2013

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Holcim at a glance

Holcim’s Strategy House – base for value creation

Holcim Leadership Journey

Proactive Asset Management – recently announced transactions

Key financial figures H1 2013 and outlook

Agenda

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Product focus – two core segments and their channels

Cement Aggregates

Net sales CHF 21.5 billion

Cement Clinker

 217.5 million tons production capacity

 147 cement and grinding plants

 Sales: 148.0 million tons

 470 aggregates plants

 Sales: 159.7 million tons

 1,286 RMX plants

 99 asphalt plants

 Sales of ready-mix concrete: 46.9 million

m 3

 Sales of asphalt: 9.1 million tons

Op EBITDA per segment 2012

Op EBITDA CHF 4.0 billion

3.4%

86.5%

10.1%

Other Construction Materials and Services

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Holcim – well balanced global portfolio

Africa Middle East Europe

Net sales per region 2012

14.7%

26.1%

39.2% 4.3%

Africa Middle East

Op EBITDA per region 2012

Op EBITDA CHF 4.0 billion

44.4% 6.6%

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BofAML Pan-European Building & Infrastructure Conference

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Holcim at a glance

Agenda

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People

Better Cost Management

Permanent Marketing Innovation

Human Resources Excellence

Corporate Social Responsibility

Sustainable Environmental Performance

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Concrete Products Direct Sales

Civil Engineering

Channels

Transformational

Masons Self - builders

Cementitious

Materials

(cement,

mineral components)

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Market maturity defines investment focus

Added value through

business integration

Market maturity

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Eastern Europe 23.3 Mt

Africa Middle East 23.2 Mt

Mature markets Emerging markets

Size of circles represents influenced capacity 2012

North America 22.0 Mt

India 60.5 Mt

China 60.0 Mt

Asia Pacific excl

India, Oceania, China

43.5 Mt

Latin America 35.5 Mt

Demand growth

Oceania 4.8 Mt

Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013

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Africa Middle East

2.3 Mt

Latin America 14.0 Mt

North America 41.3 Mt

Asia excl

Oceania 3.8 Mt

Mature markets Emerging markets

Size of circles represents consolidated sales volumes 2012

Eastern Europe 9.5 Mt

Demand growth

GDP per capita (at PPP) CAGR 2012 - 2017E

Cumulated population

Growth 2012 - 2017E

Oceania 23.9 Mt

Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013

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Holcim at a glance

Agenda

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The Holcim Leadership Journey and a focused capital

allocation to increase short and long term returns

Holcim Leadership Journey

Operating profit increase of at least CHF 1.5 bn and ROIC AT > 8%* by 2014

Marketing and sales

Energy and AFR

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Holcim Leadership Journey is on track

All figures in million CHF 2012 2013 2014

Target achieved Target 6M

Customer Excellence (operating profit impact) 50-100 31 150-200 47 500

-Customer focus

-Value management

-Pricing policies

-Marketing and sales forces skills and motivation

Cost Leadership (operating profit impact) 100-200 127 400-500 329 > 1,000

-Energy and AFR 40 126 > 300

-Logistics 0 52 > 250

-Procurement 48 39 > 250

-Fixed cost 39 111 > 200

Total increase in operating profit 1) 150-300 158 550-700 376 > 1,500

Cash cost to achieve the savings (one-off) < 80 239 3) 0 3) 0

Additional CAPEX net 2) 0-40 48 100-180 62 100-180

1) The base line is the financial year 2011 amounting to CHF 2,308 million (excluding one-off charges 2011 of CHF 375 m and without fluctuations in currency, changes in scope of consolidation and similar market conditions) 2) Additional CAPEX net will come from prioritization of CAPEX based on the speed of the returns (ROIC) Current energy fund of CHF 100 million will be maintained through the period 2012 – 2014 3) Original amount was projected < CHF 120 million for 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage

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Holcim at a glance

Agenda

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Value creative portfolio adjustments in Europe

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Asset combination in Spain with 25% shareholding by Holcim

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transactions with Cemex in Germany, Spain and the Czech Republic

reality

Germany and connect current Northern Germany and France Benelux

operations

EUR 20 million p.a

synergies

approvals

Transaction with synergies and strategic relevance driven

by strong geographical focus

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Strengthening geographic footprint in Germany and value creative combination in Spain

Germany • Holcim to acquire Cemex’s operations in West Germany, consisting of 1 cement plant and 2 grinding stations

(total cement capacity of 2.5 million tons), 22 aggregates locations, 79 ready-mix plants and 1 slag granulator

• Strong German economy

• Strengthened aggregates position

• Access to stable slag supply in Germany

• West German assets will be integrated with our existing Northern German operations and fully consolidated

Czech

Republic

• Holcim to sell Holcim Česko including 1 cement plant (cement capacity 1.1 million tons), 4 aggregates locations and 17 ready-mix plants to Cemex

• Holcim to serve customers in the Czech Republic from the Rohoznik plant in Slovakia

• Holcim to de-consolidate Holcim Česko

Spain • Holcim and Cemex to combine their entire operations in

Spain: cement, ready-mix and aggregates

• Holcim will hold 25% shareholding of the combined operations and equity account the investment going forward

• Substantial synergies through higher asset utilization in Spain

• Value creative option benefiting from synergies and potential economic upturn

• Holcim to remain shareholder of the combined entity for

at least 5 years

Holcim Cemex

Integrated cement plants (#) 3 6 Grinding stations (#) 1 2 Cement Capacity (Mt) 3.5 9.4 Aggregates quarries (#) 30 30 Ready-Mix plants (#) 57 63

as of August 2013

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Unlocking Synergies

Deriving Further Value from the India Platform

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ACL acquires Holcim’s 50.01% equity stake in ACC

Evolution of current to target shareholder structure

11,727 crore (USD ~2.0 bn) and 9.76% stake in ACL for INR 2,857 crore (USD ~0.4 bn)

bn) to Holcim post cancellation of Holcim India’s 9.76% stake in ACL upon merger

Step II: Merge Holcim India into ACL Target Structure

Interlinked transaction steps

Holcim Holcim

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Value creation opportunity

Improve

Structure

• More efficient capital structure & EPS accretive

• Re-investment of cash into business

• Collaboration under ‘India Management’ structure

• Consolidated pan-India footprint with 58 mio tpa capacity

• Confirmed >10 mio tpa capacity expansion underway in both companies; additional projects in planning (e.g ACC Ametha)

• Strong and debt free balance sheet; cash flow diversification

Maintain

Front-end

• Complementary premium brands will continue to exist

• Independent go-to-market strategy with strong dealer networks / distribution in respective markets

Commit to

India Group

• Investment in Marwar Mundwa

• Intent to increase economic ownership in ACC over time

• ACC is a perfect fit, being a Holcim Group company already

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Holcim at a glance

Agenda

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1 Calculated on the weighted average number of shares outstanding

Note: Due to the changes in accounting policies explained in note 2 of the interim financial statements, the comparative information for the first half and full year 2012 has been restated for each financial statement line item

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Outlook for 2013

• Asia Pacific: Positive development in Asia, stable cement

demand in Pacific Rim

• Latin America: Higher demand for construction materials

• Europe: Only slight decrease in sales volumes; positive development

of construction activity in Russia and Azerbaijan

• North America: Cement sales volumes similar to previous year

• Africa Middle East: Muted demand at previous year’s level

Turning to operating EBITDA and operating profit, the Board of Directors and Executive Committee expect a further improvement of margins The Holcim Leadership Journey, which gains further momentum, will contribute to this development Under similar market conditions, organic growth in operating EBITDA and operating profit should be achieved in 2013

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Regional Backup Slides

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Positions in North America

Cement capacity*: 22.0 Mt

Cement plant Grinding plant/

terminal Aggregates

* as of June 30, 2013

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Positions in Africa Middle East

Cement capacity*: 10.7 Mt; further 12.5 Mt with partners

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Positions in Asia Pacific

Cement capacity*: 90.6 Mt; further 81.5 Mt with partners

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annual results for 2013 April 29, 2014 General meeting of shareholders

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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 important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general

financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity

and news coverage, which 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

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