2007 results and outlook presentation of february 27 2008 markus akermann ceo theophil h schlatter cfo

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2007 results and outlook

Presentation of February 27, 2008

Markus Akermann, CEO

Theophil H Schlatter, CFO

The spoken word prevails

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2007 results

2007: Another record year for Holcim

Excellent operating results

Solid construction activity in most markets

Excellent geographical positioning

Strategy is strengthening Group growth

Proposal for substantial dividend increase

1) Holcim had another record year in 2007 In a favorable, but increasingly challenging economic environment, the Group's fundamental strengths were in full view This gratifying development is confirmed by strong internal operating EBITDA growth of 10.8 percent and a remarkable improvement in net income Holcim is excellently positioned in the emerging markets with high development potential, especially given that some three quarters of our cement capacity is located there We succeeded in largely offsetting the decrease in demand

experienced in a few markets Once again, we could reap the fruits of a strategy which has been consistently implemented over the years And we will continue to focus on our goals in order to remain just as successful going forward Based on the good results, the Board of Directors will be proposing to the annual general meeting on May 7 that the gross dividend be increased from 2 Swiss francs to 3 Swiss francs 30 per share We are thus meeting the target we set in 2003 of achieving in the medium term a payout ratio of one third of net income

attributable to equity holders of Holcim Ltd

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2007 results

Europe: Rise in earnings from eastern Europe

Construction activity and capacity utilization good

Eastern Europe, Russia and Azerbaijan on the up

Foster Yeom an bolsters aggregates sales in UK

High level of efficiency, stable sales, attractive prices

Europe making biggest contribution to Group result

2) I now turn to the key facts in the individual Group regions: The robust global economy also provided numerous stimuli for the European building industry In most countries of eastern Europe as well as in Russia and Azerbaijan cement deliveries increased We also lifted sales volumes in France However, demand was lower in Central Europe and Spain Our sales of aggregates also increased – bolstered by the full-year inclusion of Foster Yeoman in the UK By contrast, sales of ready-mix concrete showed a moderate decline That said, lower sales volumes in Spain and Switzerland were virtually offset by the excellent sales trends seen in other markets Thanks to greater operational

efficiency, generally stable sales patterns and largely attractive prices, practically all

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Group companies improved their financial results Good results were achieved above all

by Holcim France Benelux and Aggregate Industries UK as well as the Group

companies in eastern Europe, including Russia and Azerbaijan Overall, Europe made the biggest contribution to the Group result

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2007 results

North America: Cement production at record level

Weak US housing construction straining building industry

Higher cement output and fewer imports

Meyer Material bolsters Aggregate Industries US

Stable earnings despite weak US dollar

Optimized m arket organization from 2008

3) The US economy cooled considerably in the second half Housing construction saw a sharp decline, contrasted with a renewed increase in infrastructure and industrial

building activity Canada turned in a generally solid performance The high plant capacity utilization resulted in a new production record at Holcim US Cement imports were virtually halted In Canada, cement sales remained at a high level But in northeastern

US, St Lawrence Cement sold less cement Aggregate Industries US felt the impact of a tougher market coupled with some poor building weather Deliveries of aggregates were down throughout the market Higher sales volumes in Canada and the first-time full-year consolidation of Meyer Material absorbed the decline to some extent Ready-mix

concrete sales increased thanks to new consolidations Holcim US and St Lawrence Cement virtually matched their good previous-year performance Aggregate Industries

US, on the other hand, reported weaker results Cost-cutting measures, temporary plant closures and a sound price situation meant that the decline in operating EBITDA was considerably smaller than the decrease in volumes Following the buyout of minority interests at St Lawrence Cement, the latter's activities in the northeastern US were integrated into Holcim US at the start of 2008, leading to an improvement in customer service and market development

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2007 results

Latin America: Solid organic growth

Economy positive and building activity increasing

Cem ent and ready-mix concrete sales up

Higher volumes and somewhat better prices in Brazil

Sharp increase in raw material and energy prices

Alternative fuels ease energy outlays

4) Turning to Latin America: 2007 was a successful year for this Group region

Practically all Group companies increased or maintained their sales levels Remarkable volume increases were achieved in Costa Rica, Colombia and Ecuador In Brazil too,

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the second half, they are still insufficient Although consolidated cement and ready-mix concrete sales increased in this Group region, sales of aggregates saw a moderate decline owing to project delays The sharp increase in raw material and energy prices had a negative impact on the financial results of several Group companies However, thanks to extensive operational improvements and the increased use of alternative fuels, the higher expenditure could be partly offset Virtually all Group companies contributed

to the region's improved financial result and the solid organic growth After roughly 15 years' management responsibility for Holcim Apasco in Mexico, I have decided to hand this task over to Thomas Knöpfel with effect from April 1 this year As of this date, he will

be the Executive Committee member responsible for the whole of Latin America

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2007 results

Africa Middle East: High capacity utilization

Construction sector bolsters economic development

Higher sales volumes in all segm ents and markets

South Africa deconsolidated

Better operating results across the board

Equity accounting for Egyptian Cement

5) The general economic situation remained good in Group region Africa Middle East All Group companies lifted cement sales Capacity utilization rates were very good at Holcim Morocco, and Egyptian Cement posted a new sales record In Lebanon, we benefited from booming demand for cement in adjoining areas of neighboring countries Domestic construction activity remained muted The Group companies in the Indian Ocean enjoyed a dynamic sales environment Under the South African Black Economic Empowerment program, the Group has sold the bulk of its majority stake in Holcim South Africa The company was deconsolidated with effect from June 2007 This also had an impact on the Group region's sales volumes and financial results On a like-for-like basis, however, sales increased in all segments All Group companies posted better results Like-for-like, operating EBITDA showed an impressive year-on-year increase, confirming the robust state of the market and the good market positioning of our Group companies Orascom Cement, a joint venture partner of Holcim at Egyptian Cement, was taken over by Lafarge at the beginning of 2008 Egyptian Cement – in which Holcim continues to hold a 44 percent stake – is therefore being accounted for according to the equity method with effect from January 23

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2007 results

Asia Pacific: Results significantly higher

Economy on strong growth path

Housing and infrastructure deficit boosts building volumes

Sharp rise in sales across all segments

ACC and Ambuja Cements consolidated for full year

Stake in Huaxin Cem ent raised to 40 percent

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6) And now to Group region Asia Pacific The region grew in 2007 Construction activity was higher than average, and cement consumption rose virtually across the board Building activity saw a strong increase above all in India, Bangladesh, Vietnam, the Philippines and Indonesia Holcim achieved impressive growth in volumes of cement sold This increase is attributable mainly to the first-time full-year consolidation of ACC and Ambuja Cements in India Malaysia was the only country where we delivered less cement Sales of aggregates were also significantly higher New aggregates plants in Thailand and the solid market trend in Indonesia had a positive impact The increase in sales of ready-mix concrete reflects the stronger market presence in Singapore and other important regional metropolises Practically all Group companies contributed to the substantial improvement in the Group region's operating results In the Philippines, we benefited from rising domestic demand and a solid price environment The full-year consolidation of the Indian Group companies also had a very positive effect Just over a week ago, Huaxin Cement concluded a capital increase through a private placement

We now hold just under 40 percent of one of China's most important cement manu-facturers We are also the biggest shareholder of this dynamically expanding group

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2007 results

Sustainable development: Broad recognition

Innovative and sustainable construction solutions

Concrete: an efficient building material much in demand

Com posite cements gaining in significance

Growing use of alternative fuels

“Leader of the Industry” in the DJSI

7) Sustainability is part of our strategy I would like to remind you of the main thrusts of our efforts in this area: buildings are responsible for some 40 percent of global energy consumption New approaches to construction are therefore of major ecological significance Together with the Holcim Foundation for

Sustainable Construction, we thus support research and development for

innovative solutions in the construction industry Globally, concrete is the second most used commodity by volume after water It is of enormous significance for economic development A functioning infrastructure would be inconceivable without it Given its long life cycle, concrete is one of the most energy-efficient and eco-friendly building materials We also invest in process and product

optimization at the semi-finished clinker and cement stages For instance, by using alternative fuels and developing new types of cement Holcim is thus

making a major contribution to reducing the level of CO2 per tonne of cement produced What is more, we are on course to meet our voluntary reduction

target Sustainable development also embraces measures in the social area The annual report contains more information on innovation and sustainable

development Last year, we were named "Leader of the Industry" in the Dow Jones Sustainability Index for the third time in succession And at the World Economic Forum in Davos, the Sustainable Asset Management Group (SAM) and PricewaterhouseCoopers presented us with the "Sector Leader" prize and a

"Gold Class" distinction Such recognition strengthens us in our resolve

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2007 results

Cement capacity in million tonnes * 2008 2009 2010 2011 Total

* App roved Gro up company projects; some under construction

7 million tonnes cem ent capacity already commissioned in

2007

By 2011 there will follow a further 29 million tonnes for

around CHF 6.5 billion

Additional contribution of CHF 1.1 billion to EBITDA from

2012; CHF 550 million already from 2010

Capacity expansion: Growing with the market

8) In the year under review, Holcim commissioned just under 7 million tonnes of cement capacity worldwide – including almost 5 million tonnes in India alone In Morocco, we successfully commissioned the Settat plant, which already

produces at full capacity A further 29 million tonnes are to be added by the end

of 2011 The Group is creating a strong foundation for future growth The new facilities will make Holcim more cost-efficient and strengthen its environmental profile The investment costs for this extensive capacity expansion are estimated

at around 6.5 billion Swiss francs At all locations, we have the necessary permits and capacity is built, where we already have guaranteed reserves of raw

materials and robust market positions Holcim expects this extra capacity to produce an additional contribution of around 1.1 billion Swiss francs per year to EBITDA from 2012, with around half of this figure generated already from 2010 Investments are also being made in the aggregates segment Projects and

acquisitions are focusing mainly on Europe and North America In the ready-mix concrete sector, new capacity is being created in practically all markets along the entire value chain

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2007 results

Key financial figures

1 Adju ste d in li ne wi th rev ised IFRS

2 In clud ing a ca pital g ain on the sal e of a stake i n Hol cim South Afr ica of CHF 1 ,110 mil lio n and a spe cial divid end o f CH F 15 0 m ill ion , net

3 Cal cul ate d on the wei ghted a verag e numb er o f sha res outstandi ng

4 Exclud ing the n on-re cu rrin g capital g ain o n th e sa le of a sta ke i n Hol cim South Africa

5 Propo sal of th e B oard of Dire cto rs

Ca sh flow fro m

10 0 2 4

Di vi dend per share

65.0%

6 6.3%

EPS in CHF 3

+/-9) Net sales increased by 13 percent and operating EBITDA by 14 percent Operating profit improved by 15 percent and cash flow from operating activities advanced 20 percent In 2007, we have had only a few changes in the scope of consolidation and foreign exchange rates only had a minor impact However, on June 5, 2007, we have sold a stake in Holcim South Africa which led to a non-recurring gain of 1,260 million Swiss francs and to the deconsolidation of the South African Group The remaining participation in Holcim South Africa amounts

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to 15 percent and is equity accounted The income statement and balance sheet were affected by a mixture of strengthening and weakening currencies against the Swiss franc The US dollar in particular continued to weaken

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2007 results

Major changes in the scope of consolidation

Effe ctive as at

+/- Vario us smaller compa nies

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2007 results

Exchange rates

Stat eme nt of inc ome

1 LATAM B asket ( MX N, B RL , ARS, CL P) 1 0.98 1.00 0.97 -3.0%

1 Afri can Basket (EGP, ZAR, MAD) 1 1.03 1.00 0.95 -5.0%

1 Asi an Basket (AUD, IDR, INR, THB, P HP) 1

1.00 1.00 1.05 5.0%

Ba lanc e shee t

1 LATAM B asket ( MX N, B RL , ARS, CL P) 1 1.08 1.00 0.95 -5.0%

1 Afri can Basket (EGP, ZAR, MAD) 1 1.13 1.00 0.96 -4.0%

1 Asi an Basket (AUD, IDR, INR, THB, P HP) 1 1.03 1.00 1.03 3.0%

1 Weig hte d by net sa les full ye ar 200 6

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2007 results

Exchange rates – Translation gains / losses

Net sales 189 24 6 391

Opera ti ng EB ITDA 55 3 9 74

Opera ti ng pro fi t 42 2 2 47

Net income - e quity ho lde rs of Holcim Ltd 25 1 6 17

Ca sh flow fro m ope rating activitie s 38 3 0 53

Total share holders' equity 1,474 -61 9 - 450

Net fi nancial debt 1,070 1 1 - 342

1 Adju ste d in li ne wi th rev ised IFRS

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2007 results

Currency sensitivity

USD sens itiv it y

Million CHF

USD/CHF

at 1 2 0 USD/CHF

Euro se ns itivity

Million CHF

Euro/CHF

at 1 6 5

E uro/CHF

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2007 results

Cement – Sales volumes by region

structure Total

16.4 17.7 18.2

34.3 31.8 32.9

64.9 55.0

28.9 14.5 15.3 14.8

26.6 23.7 25.9

Total Group

2005 110.6

2006 140.7

2007 149.6 Million t

14) Consolidated cement sales volumes increased 6 percent to 150 million tonnes with all regions attaining positive internal growth with the exception of North America

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2007 results

Aggregates – Sales volumes by region

structure Total

56.9 65.1 65.0

4.0 3.2 3.2 5.7 11.2 9.7

12.5

Total Group

2005 169.3

2006 187.6

2007 187.9

Million t

1 08.8 79.7 95.4

15) Aggregates sales volumes reached 188 million tonnes and remained stable

compared to the previous year despite the sluggish US construction market

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2007 results

38.2

13.3

Ready-mix concrete and asphalt – Sales volumes

-3.3%

+1 5.7%

Ready-mix concrete in million m 3

Asphalt in million t

+2.3%

+30.4%

+15 0%

n.a.

16) Shipments of ready-mix concrete increased by 2 percent to 45 million cubic meters Total asphalt volumes sold decreased by 3 percent to 15 million tonnes mainly due to lower deliveries in the US and the UK

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2007 results

27,052 23,969

18,468

Net sales

Like-for-Like (LFL) 1,329 10.1% 1,647 9.0% 1,933 8.1%

Change in structure 3,735 28.2% 3,608 19.5% 759 3.2%

Forex movements 189 1.5% 246 1.3% 391 1.6%

Total change 5,253 39.8% 5,501 29.8% 3,083 12.9%

Million CHF

17) Total consolidated net sales amounted to 27 billion Swiss francs resulting in a growth of 13 percent on an overall basis and 8 percent like-for-like

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2007 results

Net sales by region

structure

5365 5520 4704

4010 3675 3158

1873 2086 1831

6292 4745 2288

2006 2007

10401

7037 8673

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2007 results

North America

19.2%

Europe 37.3%

Asia Pacific 22.5%

Africa Middle East 6.6%

Latin America 14.4%

Net sales by region

Net sales 2007

19) Europe’s share in net sales increased to 37 percent of Group total while North America contributed 19 percent 14 percent of net sales were generated in Latin America and 7 percent in Africa Middle East The region Asia Pacific gained importance by expanding its share from 19 percent to 23 percent

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2007 results

4,627

6,086

6,930

25.1% 25.4% 25.6%

26.0%

Operating EBITDA

Margin

Like-for-Like (LFL) 377 10.5% 611 13.2% 660 10.8%

Change in structure 607 16.9% 809 17.5% 110 1.8%

Forex movements 55 1.6% 39 0.8% 74 1.3%

Total change 1,039 29.0% 1,459 31.5% 844 13.9%

1 Margi n on a li ke-for-li ke basi s

20) Operating EBITDA grew from 6.1 billion Swiss francs to 7 billion Swiss francs It increased by 14 percent on an overall basis or by 11 percent excluding changes in structure and currency effects The overall EBITDA margin improved further to 25.6 percent or to 26 percent on a like-for-like basis thanks to performance improvements despite energy cost rises and a slowdown in construction activity in some of the markets

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2007 results

Operating EBITDA by region

structure

999

928 1033

1256 1244 1126

65 3 692

61 4

1 844 1366

570

2006 2007

2399

1605

1 966

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