fixed income investor update may 2014 christof hassig head corporate finance treasury m a and insurance dominik liebi capital markets bank relationship manager 2014 holcim

Agenda Holcim at a glance First quarter 2014 results, outlook and Holcim Leadership Journey Financial positioning and financing Merger of equals between Holcim and Lafarge... Agenda H

Strength Performance Passion

Fixed-income investor update

IFZ - MAS Corporate Finance 20_10 – Funding

Christof Hässig – Head Corporate Finance & Treasury, M&A and Insurance

Dominik Liebi – Capital Markets Bank Relationship Manager

Agenda

Holcim at a glance

First quarter 2014 results, outlook and Holcim Leadership Journey

Financial positioning and financing

Merger of equals between Holcim and Lafarge

Presence on all five continents and in around 70 countries

2013 Net sales of CHF 19.7 bn and operating EBITDA of CHF 3.9 bn

Agenda

Holcim at a glance

First quarter 2014 results, outlook and Holcim Leadership Journey

Financial positioning and financing

Merger of equals between Holcim and Lafarge

• Like-for-like sales increase in all segments

• Strong momentum of Holcim Leadership Journey continues

• Significant increase in operating profit and further margin

improvement

• Substantial adverse exchange rate impact

• Improved cash flow from operating activities due to strong

operating EBITDA and further reduction in NWC

• Portfolio management in Europe received approval in the

Czech Republic

• Simplification of group structure in India close to completion

• Merger of equals with Lafarge announced – Creating the most advanced Group in the building materials industry

Q1 2014 Milestones

Key financial figures

Net sales by region

Cement – Sales volumes by region

Aggregates – Sales volumes by region

Ready-mix concrete and asphalt – Sales volumes by region

Operating EBITDA by region

The five areas of operating profit growth by 2014

Holcim Leadership Journey is on track

All figures in million CHF

2014

cum Target

achieved cumulative since 2012

4) excluding CHF 16 million of restructuring costs in Europe (mainly Spain)

3) Original amount w as projected < CHF 120 million for 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage

achieved achieved 3M

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 w ithout fluctuations in currency, changes

in scope of consolidation and similar market conditions) Adjusted for the sale of 25% of Cement Australia and Siam City Cement, the new base is CHF 2'193 million

2) Additional CAPEX net comes from prioritization of CAPEX based on the speed of the returns (ROIC).

• Holcim expects cement volumes to increase in all Group

regions

• Aggregates volumes expected to remain flat overall as

increases in Asia Pacific, Europe, North America, and Africa

Middle East are offset by negative volumes in Latin America

• Ready-mix concrete volumes also expected to increase in most regions with the exception of Europe and Latin America

• Holcim expects that organic growth in operating profit can be achieved in 2014

• The ongoing focus on the cost base coupled with all the

benefits expected from the Holcim Leadership Journey will lead

to a further expansion in operating margins

Outlook for 2014

Cost and capex guidance for 2014

• Energy costs per tonne of cement produced slightly above

2013 level

• Average interest rate unchanged at 4.8 percent

• Long term expected tax rate of 27 percent

• Maintenance capex of CHF 0.8 billion net

• Expansion capex of CHF 1.1 billion

Agenda

Holcim at a glance

First quarter 2014 results, outlook and Holcim Leadership Journey

Financial positioning and financing

Merger of equals between Holcim and Lafarge

<1y 1-2y 2-3y 3-4y 4-5y 5-6y 6-7y 7-8y 8-9y 9-10y >10y

Loans Capital markets

Financial debt, maturities and liquidity as of March 31, 2014

Maturity profile 1 (mCHF)

1 After risk-related adjustments of CHF 392 million from current financial

liabilities to long-term financial liabilities

Liquidity summary

• Cash + marketable securities: CHF 2,016 million

• Cash + marketable securities + unused committed credit lines: CHF 6,558 million

Debt summary

• Current financial liabilities 1 : CHF 2,493 million

• Fixed to floating ratio: 58% to 42%

• Capital markets 79%; Loans 21%

• Corporate vs subsidiary debt: 81% to 19%

• Ø total maturity: 5.2 years

• CP borrowings: CHF 466 million

• No financial covenants in Corporate credit lines

ST/LT ratings summary as of April 28, 2014

• S&P Credit Rating: A-2 / BBB, outlook stable

• Fitch Credit Rating: F2 / BBB, outlook stable

• Moody’s Credit Rating: P2 / Baa2, outlook negative

Overall debt reduced by CHF 6.6 billion since 2008

Share of capital market financing at around 80%

Loans Capital markets Share of capital market financing (r.h scale)

Access to a wide range of capital markets – only CHF 0.9 bn

of capital markets instruments maturing until year-end 2014

Capital markets funding distribution as per Q1 2014 Capital market maturities Q1 2014 – 2015

May-14Jul-14Oct-14Dec-14

Mar-15Apr-15Jul-15Nov-15Dec-15

Q4 06

Q4 07

Q4 08

Q4 09

Q4 10

Q4 11

Q4 12

Q4 13

Average maturity substantially increased to 5.2 years with long-dated bonds in USD, EUR and CHF

USD 50 m bond (20 years)

USD 500 m bond (10 years) USD 250 m bond (30 years)

Major capital market transactions since January 1, 2013

Average maturity of financial liabilities (in years)

CHF 250 m bond (8.5 years)

EUR 500 m bond (10 years)

Amendment and extension EUR 2.0 bn Syndicated Revolving Committed Credit Facility

Target

Agenda

Holcim at a glance

First quarter 2014 results, outlook and Holcim Leadership Journey

Financial positioning and financing

Merger of equals between Holcim and Lafarge

KEY TRANSACTION HIGHLIGHTS

COMPANY

DEAL STRUCTURE »» Merger of equals Company domiciled in Switzerland

REBALANCED

PORTFOLIO

» Capitalise on developed markets recovery

» Divestments of assets representing CHF 6bn / EUR 5bn of sales

» 60% exposure to emerging markets post divestments

» No country above c 10% of sales

BOARD &

SHAREHOLDER

SUPPORT

» Boards of both companies have unanimously approved the transaction

» Thomas Schmidheiny, GBL and NNS fully support the transaction

VALUE

PROPOSITION

» Best growth platform in the industry and superior operating profitability

» CHF 1.7bn / EUR 1.4bn of run-rate synergies

» Strict capital allocation discipline and strong financial structure:

targeted solid Investment Grade credit ratings

» Attractive dividend payout policy

EXCHANGE

A MERGER OF EQUALS

SHARE LISTING » SIX (Zurich)

» Euronext (Paris)

MANAGEMENT »» CEO: Bruno Lafont CFO: Thomas Aebischer

» CIO: Jean-Jacques Gauthier

» Chairman: Wolfgang Reitzle

» Equally composed Board with 7 members from Holcim and 7 members from Lafarge

PRO FORMA SHAREHOLDING STRUCTURE BALANCED GOVERNANCE AND LEADERSHIP

OTHER LAFARGE SHAREHOLDERS

SHAREHOLDERS

42%

NNS 7%

GBL 10% SCHMIDHEINY THOMAS

11%

1 Combined market cap based on closing share prices on 4 April 2014

COMBINED MARKET CAP CHF 48.8 bn / EUR 39.9 bn 1 INTEGRATION

COMMITTEE » Co-Chaired by Holcim and Lafarge

A COMBINATION OF TWO SUCCESSFUL GROUPS

90

CHF 38.6 / EUR 31.6

CHF 7.8 / EUR 6.4

ILLUSTRATIVE PRO FORMA 2

Notes:

1 Full run-rate

2 Excluding implementation costs

GEOGRAPHICAL COMPLEMENTARITY OF PORTFOLIOS

Holcim sales (CHF)

Lafarge sales (CHF)

Global presence of Holcim and Lafarge

Lafarge Holcim Combined

Emerging markets

Developed markets Total

100%

CHF 2.0 / EUR 1.7

3.3 5.2

Asia

61%

39%

CHF 8.6 / EUR 7.0

STRATEGIC PORTFOLIO OPTIMISATION

STRATEGIC PORTFOLIO OPTIMISATION WHILST ANTICIPATING REGULATORY REQUIREMENTS

STRONG CAPITAL STRUCTURE AFTER DIVESTMENTS DIVESTMENT COMMITTEE IS BEING FORMED

OPERATIONAL SYNERGIES

» Operational optimisation / best practices

 E.g logistics, distribution, IT, energy consumption

RUN-RATE SYNERGIES

CHF 240 m / EUR 200 m

» Procurement

 Savings in overlapping countries

 Economies of scale in centralized procurement for

selected categories

» Selling, General and Administrative

» Innovation deployed on a larger scale

 Cross-fertilization of value-added product portfolios

CHF 410 m / EUR 340 m

CHF 300 m / EUR 250 m

CHF 240 m / EUR 200 m

CHF 1.2 bn / EUR 1.0 bn TOTAL SYNERGIES AT EBITDA LEVEL

FINANCING & CASH-FLOW SYNERGIES

» Financing savings

SYNERGIES

CHF 120 m / EUR 100 m (from end of year 1)

Up to CHF 240 m / EUR 200 m (over time)

» Capital expenditures

 Best practice on maintenance capex

 Higher efficiency on expansion capex

» Working capital savings

 Sharing of best practices

CHF 250 m / EUR 200 m

CHF 500 m / EUR 410 m (over 3 years)

CHF 1.7 bn / EUR 1.4 bn TOTAL SYNERGIES

KEY STEPS TO CLOSING

INTEGRATION

PREPARATION » Prepare an integration plan for implementation straight after closing of the transaction

REGULATORY

APPROVALS » Regulatory proceedings initiated in all relevant jurisdictions shortly

TRANSACTION CLOSING EXPECTED IN H1 2015

Contact information and event calendar

quarter results for 2014

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