berenberg european conference thomas aebischer cfo holcim group london december 4 2013

Holcim Strategy and Positioning - base for value creation Holcim Leadership Journey Proactive Asset Management - recently announced transactions Regional overview Conclusions... Holcim S

Berenberg European Conference

Thomas Aebischer, CFO Holcim Group

London, December 4, 2013

Holcim Strategy and Positioning - base for value creation

Holcim Leadership Journey

Proactive Asset Management - recently announced transactions

Regional overview

Conclusions

Construction Industry Value Outlook until 2017E (USD bn)

Source: BMI Market Outlook, 2013

Holcim’s Strategy House – base for value creation

Permanent Marketing Innovation

Human Resources Excellence

Corporate Social Responsibility

Sustainable Environmental Performance

Positioning – Holcim’s cement market portfolio

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

Positioning – Holcim’s aggregates market portfolio

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

Holcim Strategy and Positioning - base for value creation

Holcim Leadership Journey

Proactive Asset Management - recently announced transactions

Regional overview

Conclusions

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

Holcim Leadership Journey is on track

-Customer focus

-Value management

-Pricing policies

-Marketing and sales forces skills and motivation

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

Holcim Strategy and Positioning - base for value creation

Holcim Leadership Journey

Proactive Asset Management - recently announced transactions

Regional overview

Conclusions

Lloseta Buñol

Value creative portfolio adjustments in Europe

• Acquisition of Cemex’s operations in

North-Western Germany

• Sale of Holcim Česko to Cemex

• Business combination of Holcim and

Cemex in Spain where Holcim will hold

a 25% shareholding

• One time cash payment of EUR 70

million by Holcim to Cemex

• Closing expected in H1 2014, subject

to due diligence, regulatory and other

approvals

• Holcim to optimize its portfolio in Europe through a series of interlinked

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

Transaction with synergies and strategic relevance driven

by strong geographical focus

Recent developments

transactions with Cemex

 EU Commission opened a Phase II investigation of the German transaction on October 22nd, 2013 Phase II could take until end of April 2014 (90 to max 125 working days)

 EU Commission issued a formal decision on November 14th, 2013 to submit

extensive economic data Due to this formal decision, Phase II is on hold

until November 29th, 2013

Next steps

Recent developments / Next steps

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

Interlinked transaction steps

Holcim Holcim

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

Recent developments

shareholders voted in favor of the deal

received approval from 90.4% of shareholders for the proposed

restructuring

Next steps

under Sec 391-394 of the Companies Act, 1956 (regulatory process)

Recent developments / Next steps

Holcim Strategy and Positioning - base for value creation

Holcim Leadership Journey

Proactive Asset Management - recently announced transactions

Regional overview

Conclusions

• Growth in the construction industry

remained solid

• Drop in sales in all segments: in

cement primarily due to harsher

economic situation in India and in

aggregates due to Holcim Australia

• Holcim Philippines benefitted from

strong demand and better prices

• Despite progress on the cost front,

weaker results in India and negative

currency translation effects led to a

decrease in operating EBITDA

Asia Pacific affected by fall in demand in India

1 Restated due to changes in accounting policies.

• Construction industry built on last

year’s solid performance

• Higher cement deliveries in Ecuador,

Argentina and Costa Rica

• Divestments and temporary market

exits lowered aggregates sales

volumes significantly; ready-mix

concrete shipments also decreased

• Major efforts to keep costs in check led

to higher operating EBITDA

• Chile, Colombia and Ecuador posted

significantly better results

Latin America still on growth track

1 Restated due to changes in accounting policies.

2 The percentage change like-for-like adjusted for internal trading volumes eliminated in

“Corporate/Eliminations” amounts to -0.6%.

• European construction markets still

lacked economic stimuli

• Shipments of cement increased

primarily due to the CIS/Caspian

region

• Sales volumes of aggregates as well

as ready-mix concrete decreased

• Capacity adjustments and cost-cutting

measures led to significantly better

operating EBITDA and strong organic

growth

Europe making further headway

1 Restated due to changes in accounting policies

• The US construction industry became

slightly more dynamic, but in Canada

economic growth slowed down

• Holcim US recorded slight decrease in

cement sales and Aggregate Industries

US sold more aggregates and

ready-mix concrete

• Holcim Canada was unable to

compensate weather-related setbacks

• Improved performances in the US led

to solid organic growth

North America continues its recovery

1 Restated due to changes in accounting policies

• Demand remained strong in Lebanon

despite the turmoil in Syria

• Reduction in sales volumes in all

segments, primarily due to Morocco

• Grinding stations in West Africa and

Gulf region delivered less cement

• Declining sales volumes in Indian

Ocean region

• Operating EBITDA was down mainly

due to the weaker performance in

Morocco

Subdued economic situation in Africa Middle East

1 Restated due to changes in accounting policies

Holcim Strategy and Positioning - base for value creation

Holcim Leadership Journey

Proactive Asset Management - recently announced transactions

Regional overview

Conclusions

• Medium term construction industry growth of 7% is driven by emerging

markets and the recovery in Europe and the US – Holcim is well positioned to participate

Holcim Leadership Journey well on track and with increasing momentum

create more value from the existing asset base

operating EBITDA and operating profit coupled with a further improvement in margins

Conclusions

Contact information and event calendar

February 26, 2014 Press and analyst conference on

annual results for 2013 April, 28, 2014 Results for the first quarter 2014 April 29, 2014 General meeting of shareholders July 30, 2014 Half-year results for 2014

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.