2005 annual results and outlook for 2006 holcim ltd

Dynamic development of the Groupƒ Dynamic growth marks Group results ƒ Internal operating EBITDA growth of 10.5 percent ƒ Acquisitions totaling CHF 5.2 billion ƒ Foundations laid for cre

2005 annual results and outlook for 2006

Dynamic development of the Group

ƒ Dynamic growth marks Group results

ƒ Internal operating EBITDA growth of 10.5 percent

ƒ Acquisitions totaling CHF 5.2 billion

ƒ Foundations laid for creation of value in the future

ƒ Solid Group net income permits dividend increase

Pleasing development of existing portfolio

ƒ Group profited fully from its strengths in a favorable

economic environment

ƒ Predominantly friendly price environment and good capacityutilization

ƒ Impressive performance in all Group regions

ƒ Stringent cost management and price increases absorb

higher energy costs

ƒ Foreign currency effects negligible

Group strengthened by significant acquisitions

ƒ Holcim makes the largest acquisitions in the company’s

ƒ Takeover of Aggregate Industries marks a major step

towards implementing a dual product strategy

ƒ All companies making a positive contribution to the Group

result since day one

ƒ Integration of the new companies is going according to plan

ƒ Construction industry largely solid

ƒ Housebuilding and infrastructure projects trigger strong demand

ƒ Strong increase in consumption widespread, especially in

Switzerland

Operations in Europe

Cement plant Grinding plant/

terminal Aggregates

Participation:

Cement plant

Facts on Europe

ƒ Marked increase in deliveries of aggregates and ready-mix

concrete; cement sales gratifying

ƒ Thanks to its excellent market positions, Aggregate Industries

UK lifts sales of aggregates, concrete and asphalt

ƒ All Group companies see improvement in operating result, in particular in Spain, France, Central and Southeastern Europe

ƒ Price recovery and more differentiated product range lead to better operating margins in Germany

ƒ In Europe, operating EBITDA is up by 34 percent to CHF 1.6 billion

ƒ Internal operating EBITDA grows by 11 percent

ƒ Integration of Aggregate Industries well advanced; potential for synergies and savings clearly identified

ƒ Construction activity solid in Canada, but second half weaker

Operations in North America

Cement plant (1under construction) Grinding plant/terminal Aggregates

1

Facts on North America

ƒ Major expansion in aggregates, ready-mix concrete and

asphalt operations thanks to Aggregate Industries US

ƒ Further increase in cement sales and very good capacity

utilization

ƒ Earnings at St Lawrence Cement nearly offset weaker

demand on US East Coast

ƒ Holcim US is profiting from increased plant efficiency and

Latin America

ƒ Economy firms in year under review

ƒ Construction activity remained

at a generally high level

ƒ Housebuilding, infrastructure projects and tourism stimulate demand for building materials

Operations in Latin America

Facts on Latin America

ƒ Higher sales volumes of cement and ready-mix concrete

ƒ Strong improvements in sales and results at almost all Group companies

ƒ Mexico, Ecuador, Argentina and first-time consolidated

Cemento de El Salvador all make sizable contributions

ƒ Pressure on prices impairs financial results in Brazil and

Colombia

ƒ Progress made in use of alternative fuels

ƒ Operating EBITDA up 3 percent to CHF 1.1 billion

ƒ Slight decrease in internal operating EBITDA growth of 4

percent

Africa Middle East

ƒ Generally positive economic climate

ƒ Private and public investments boost demand for construction materials

ƒ Very robust development in South Africa and Morocco

Operations in Africa Middle East

Facts on Africa Middle East

ƒ All Group companies profiting from friendly market

ƒ Sales increases across all segments; strong rise in deliveries of ready-mix concrete in South Africa

ƒ Improved market prices and higher capacity utilization

underpinned local results

ƒ Holcim Lebanon profits from additional export opportunities

ƒ Operating EBITDA increases by 27 percent to CHF 614 million

ƒ Supported by all Group companies, internal operating EBITDA grows 22 percent

Asia Pacific

ƒ Growing construction activity

ƒ Main stimuli coming from housebuilding and infrastructure projects

ƒ Strong increase in cement consumption

Operations in Asia Pacific

Facts on Asia Pacific

ƒ All big Group companies post increase in cement sales

ƒ Significantly higher volumes of ready-mix concrete delivered

ƒ Substantial contributions to results from the Philippines,

Thailand, Vietnam and Indonesia

ƒ A sound market plus efficiency increases produce attractive results in Australia too

ƒ Operating EBITDA up 23 percent to CHF 570 million

ƒ Internal operating EBITDA increases 16 percent

ƒ Ambuja Cement Eastern consolidated since April 2005 and

The Associated Cement Companies since February 2006

ƒ In India acquisitions of 34 million tonnes of cement capacity within 12 months, including Gujarat Ambuja Cements

Key financial figures

+/-Major changes in the scope of consolidation

capacity

Balance sheet

Exchange rates – Translation gains / losses

Sales volumes cement by region

18.2 17.5

17.2

31.8 30.8

26.5

28.9 25.8

23.3

14.8 12.8 14.0

23.7 19.3 20.6

Total Group

Sales volumes aggregates and ready-mix concrete

13,215 12,600

Net sales by region

4704

2630 2507

3158 2785

1760

2003 2004 2005

North America 24.7%

Europe 36.9%

Asia Pacific 12.0%

Africa Middle East

9.8%

Latin America 16.6%

Net sales by region

Net sales 2005

3,588 3,311

Energy cost development

Brent Oil Price (USD)

Electricity expenses

Fuel expenses

Total energy cost

CIS adjusted Operating EBITDA margin target

Aggregate Industries Group India

Holcim Indonesia Holcim Serbia

Group Russia

Operating EBITDA by region

928

551 485

1126 1095

1124

1605

1202 1052

614 483

384

570 465

449

2003 *

2004 *

2005

2,251 1,925

' 2004/2005 LFL Goodwill

amort.

Change in structure

Currency Total

Europe 15.8% 17.1% 21.5% 0.6% 55.0% North America 34.8% 2.2% 37.9% 3.6% 78.5% Latin America -5.6% 8.7% 7.3% 0.5% 10.9%

Operating profit by region

Million CHF

639

305 358

866 781

791

1125

726 530

524 393

233 210

2003 *

2004 *

2005

Group net income

1,818

1,120 928

1,540

881 682

2,622 2,619

Cash flow statement

Cash flow from operating activities 2,619 2,622 3,405 29.9%

Net investments to maintain productive

In(De)crease in cash and

111.7%

64.2%

Million CHF

Funds from operations/

Financial indicators

Holcim Value Added (HVA)

Price/volume variances per region

Domestic cement prices

Price/volume variances per region

Domestic cement prices

Price/volume variances per region

Africa Middle East

Domestic cement prices

Price/volume variances per region

Domestic cement prices

Strength Performance Passion.

Contact information and event calendar

March 1, 2006 Annual results 2005

Conferences for press and analysts May 11, 2006 First quarter results 2006

May 12, 2006 Annual General Meeting May 17, 2006 Dividend payment

August 24, 2006 Half-year results 2006 November 8, 2006 Third quarter results 2006

Conferences for press and analysts February 28, 2007 Annual results 2006

Conferences for press and analysts