holcim strength performance passion bellevue seminar 2013 roic past present future thomas aebischer cfo holcim ltd

Bellevue Seminar 2013 – ROIC: Past - Present - Future Thomas Aebischer, CFO Holcim Ltd... © 2013 Holcim Broader stakeholder perspective: Sustainable Development SD is our “license to o

Strength Performance Passion

Bellevue Seminar 2013 – ROIC: Past - Present - Future

Thomas Aebischer, CFO Holcim Ltd

Agenda

2

Bellevue meets Management Seminar January 2013

Safety is our first priority

• Lost-Time Injury Frequency Rate (LTIFR) for own employees has dropped to 1.6 in 2011

• Puts us amongst the top per- formers in the industry for LTIFR

• LTIFR YTD June 2012 was 1.4 which is within our current target of 1.5

• Aim to improve even further – Target: <1 by 2013

LTIFR

0 2 4 6 8 10

2004 2005 2006 2007 2008 2009 2010 2011 30.

© 2013 Holcim

Broader stakeholder perspective:

Sustainable Development (SD) is our “license to operate”

Vision

Our vision is to provide

foundations for society's future

Mission

Our mission is to be the world's

most respected and attractive

company in our industry –

creating value for all our

stakeholders

 Member of World Business Council for

Sustainable Development (WBCSD)

 Selected as an index component for the Dow

Jones Sustainability World Index and the

European Dow Jones STOXX Sustainability Index

for seven years

Creation of Value

MindsetsStrategyGoal

Base

Product Focus Geographic

Diversification

Local ManagementGlobal Standards

People

BetterCostManagement

Permanent MarketingInnovation

Human ResourcesExcellence

CorporateSocialResponsibility

SustainableEnvironmental Performance

Creation of Value

MindsetsStrategyGoal

Base

Product Focus Geographic

Diversification

Local ManagementGlobal Standards

People

BetterCostManagement

Permanent MarketingInnovation

Human ResourcesExcellence

CorporateSocialResponsibility

SustainableEnvironmental Performance

Triple bottom

line progress Social

Economic growth

Environmental performance

Holcim Strategy House

• 1990-2011:

 2010 target reached ahead of schedule: net 1

CO2 emissions per tonne of cement down by 22% in 2011

baseline by 2015

new ambitious target set for 2015

Specific CO2 emissions (kg CO2 / tonne cement Thermal substitution rate by alternative fuels (% of thermal

energy from alternative fuels)

© 2013 Holcim

Agenda

6

Bellevue meets Management Seminar January 2013

Building on a proven strategy…

People

Better Cost Management

Permanent Marketing Innovation

Human Resources Excellence

Corporate Social Responsibility

Sustainable Environmental Performance

© 2013 Holcim

…and increasing the focus on ROIC

ROIC & HVA

(Holcim Value Added)

Company result after consideration of all costs of capital, incl cost of equity

Key operational indicator focused on cash-generation/

efficiency

TSR

(Total Shareholder Return)

Op EBITDA /

Op EBITDA - Margin

ROIC & EV

(Enterprise Value)

- Credit Rating

Internal view Value Creation

Sustainable growth through the execution of a 14.5 million tonne pipeline provides for cost leadership and returns

Capital expansion investments (CHF m) Production capacity cement (mt)

Emerging markets continue to record sound growth rates

© 2013 Holcim

Main financing projects concluded within the last 12 months

CHF 450 m bond

EUR 422 m bilateral loans

EUR 2 bn RCF USD 100 m &

EUR 38 m ECA financings

AUD 500 m bonds

AUD 320 m bilateral loans

BRL 700 m development banks

Holcim’s ROIC has reached good levels on a pre-crisis level, while witnessing a softening thereafter

ROIC before tax 1 :

© 2013 Holcim

Agenda

14

Bellevue meets Management Seminar January 2013

The Holcim Leadership Journey and its two pillars

Holcim Leadership Journey

Capture demand through advice & service Optimization of cost base

Customer focus

Value management

Pricing policies

Marketing and sales

Energy and AFR

Logistics

Procurement

Fixed cost

Leadership Journey

Dedicated people

> 8%

* After tax

Differentiation and de-commoditization

Reliable Supplier

Consistent Quality

Customer Care

Solid Quote-to-

Competitive Price

Sustainability

Innovative Solutions

Technical Consulting &

Sales

Range of Products &

Services

Early Supplier Involvement

• Differentiation of product &

service offer in all segments

• Tailor-made solutions for customer segments and single

projects => increase value

© 2013 Holcim

Driving innovation on a global scale through our network

Holcim Switzerland is supplying the concrete solution for the 15 km long Ceneri base tunnel

Part of this solution is a unique concrete batching plant in a cavern deep inside the mountain

Holcim Canada developed a special concrete for road repairs

A high-early-strength concrete mix and the dedication of Holcim’s crews guaranteed continuous mobility

Working closely with the

customer, Holcim Apasco

innovations – built to last for 100 years without maintenace

Holcim Singapore delivers the green lablled and high-density concretes for the construction of man- made supertrees in a new tropical garden

Agenda

Emerging Economies GDP: 2011 - 2017E

Developed Economies GDP: 1980 -2011 Developed

Economies GDP: 2011 -2017E

Developed Economies

Emerging Economies

Source: IMF (World Economic Outlook, October 2012), World Bank (Population Statistics, November 2012)

…in addition to Popurbanization representing a

considerable source of steady demand globally

© 2013 Holcim

Global construction growth is strongly driven by emerging markets

Construction Market Outlook until 2016E (USD bn)

Europe (mature markets):

North America:

Africa Middle East:

Latin America:

Asia Pacific (emerging markets):

Asia Pacific (developed markets):

Source: BMI Market Outlook, 2012

CAGR 2012E -2016E

12.0%:

2.5%: 2.7%: 1.0%: 11.8%:

2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E

Europe (emerging markets): 11.9%:

Agenda

1 Corresponding to Holcim’s WACCBT and a ROICAT of at least 8%

2 Based on Invested Capital excluding cash, marketable securities, deferred tax assets/liabilities, prepaid interest, accrued interest receivable and dividends receivable, advance interest received, accrued interest payable and dividends payable

ROIC before tax 2 :

Growing ROIC through different levers

Combining these three levers of growth Holcim is able to capture the market growth,

ROIC

Cost Leadership Customer Excellence

Selective divestments Investment efficiency

© 2013 Holcim

• Holcim’s strategy has proven successful in the past and will

continue to do so going forward

• The Holcim Leadership Journey will leverage the benefits of the strategy

• Organizational changes at Holcim enable initiatives in the

Holcim Leadership Journey

• Discipline, incentive and performance management will ensure growth and improved returns

• Holcim has high upside potential on cash flow generation and

is well financed, with a balanced maturity profile, a strong cash position and access to a wide range of capital markets

Contact information and event calendar

November 5, 2013 Press and analyst conference for the third

quarter 2013