2005 annual results and outlook for 2006 presentation of march 1 2006 holcim ltd

2005 annual res ults Dynamic development of the Group Dynamic growth marks Group results Internal operating EBITDA growth of 10.5 percent Acquisitions totaling CHF 5.2 billion Foundation

Presentation of March 1, 2006

Markus Akermann, CEO

Theophil H Schlatter, CFO

The spoken word prevails

2005 annual results and outlook for 2006

2005 annual res ults

Dynamic development of the Group

Dynamic growth marks Group results

Internal operating EBITDA growth of 10.5 percent

Acquisitions totaling CHF 5.2 billion

Foundations laid for creation of value in the future

Solid Group net income permits dividend increase

1) For Holcim, last financial year was exceptionally dynamic, setting new standards in terms of both organic and acquisition-based growth Within its existing portfolio, the Group generated organic growth of about 10 percent in terms of sales, operating EBITDA and cash flow The acquisitions came to a total of 5.2 billion Swiss francs Extrapolated to the year as a whole these companies represent sales of 5.5 billion Swiss francs This is equivalent to just under a third of consolidated net sales and results in an additional contribution to operating EBITDA of nearly one billion Swiss francs The fundamentally solid positioning and swift integration of the newly acquired companies provide an excellent basis for continuing to generate substantial added value going forward In light of a marked rise in net income, this year the Board of Directors once again proposes that the General Meeting adopt an increase in dividend from 1 franc 25 to 1 franc 65 per share This corresponds to an increase of 32 percent

2

2005 annual res ults

Pleasing development of existing portfolio

Group profited fully from its strengths in a favorable

economic environment

Predominantly friendly price environment and good capacity

utilization

Impressive performance in all Group regions

Stringent cost management and price increases absorb

higher energy costs

Foreign currency effects negligible

2) In a favorable economic environment, Holcim applied the Group's strengths to the full The consolidated financial statements are based on a solid regional business development and confirm our leading position as a global building materials group With a few exceptions, we were able to positively influence results with targeted price adjustments Good capacity utilization also had an impact In operating terms, the main focus of our efforts was on the cost side, as we wished to offset the massive rise in energy costs as much as possible These efforts were successful thanks to a range of measures, but in particular thanks to greater use of alternative fuels and an

improvement in the marketing of composite cements In contrast with previous years, the impact of foreign currency effects on the income statement in Swiss francs was only negligible

2005 annual res ults

Group strengthened by significant acquisitions

Holcim makes the largest acquisitions in the company’s

history

Thanks to a strong balance sheet, the acquisitions could be

financed almost exclusively from borrowed capital

With India and El Salvador the focus of investment in cement

is in growth markets

Takeover of Aggregate Industries marks a major step

towards implementing a dual product strategy

All companies making a positive contribution to the Group

result since day one

Integration of the new companies is going according to plan

and synergy potentials are to be exploited step-by-step

3) Last financial year Holcim made the largest acquisitions in its history, financed – thanks to a strong balance sheet – almost exclusively from borrowed capital The main areas of investment were the takeover of Aggregate Industries, the acquisition of a majority stake in Cemento de El Salvador, and the entry into the Indian market The decision to step up our presence in emerging market India as announced in January

2006 rounds out the picture In the emerging markets we intend to continue to focus primarily on the fast-growing cement sector However, in the mature markets we shall

be continuing to open up our range of products and services and shall be presenting ourselves as a solution-oriented partner We expect this dual product strategy, based

on cement and aggregates, to generate key stimuli in the future With the new

acquisitions, Holcim is investing in quality All companies boast good market

positioning, modern plants, long-term reserves of raw materials, competent

management teams and capable employees The new acquisitions have been making

a positive contribution to the Group result since day one The integration of these companies into the Holcim Group has got off to a very good start and we shall be exploiting the full potential for synergies and savings on a step-by-step basis I shall be returning to certain points concerning these acquisitions in the context of the regional reports

4) Developments in Group region Europe: Gratifying global economic conditions also gave a boost to the European economy Against this background, the construction sector was predominantly solid and cement demand continued to rise

2005 annual res ults

Operations in Europe

Cement plant Grinding plant/

terminal Aggregates

Participation:

Cement plant

5) You immediately see that Holcim has strengthened its presence in Europe With Aggregate Industries, we now also have operations in the UK, an attractive building materials market with traditionally stable cash flows Here, Aggregate Industries holds

a strong market position As a result of this acquisition, the Group has gained 87 aggregates plants, 83 ready-mix concrete facilities, 58 asphalt plants and 4 cement import terminals Expansion of capacity at the Beli Izvor plant in Bulgaria has

progressed according to plan In Romania, we are building a new kiln line at the

Campulung plant which is due to commence operations in 2008 In Italy and Spain in particular, but also in Central and Eastern Europe, we expanded our distribution

network by purchasing or constructing ready-mix concrete facilities

6

2005 annual res ults

Facts on Europe

Marked increase in deliveries of aggregates and ready-mix

concrete; cement sales gratifying

Thanks to its excellent market positions, Aggregate Industries

UK lifts sales of aggregates, concrete and asphalt

All Group companies see improvement in operating result, in

particular in Spain, France, Central and Southeastern Europe

Price recovery and more differentiated product range lead to

better operating margins in Germany

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

billion

Internal operating EBITDA grows by 11 percent

Integration of Aggregate Industries well advanced; potential

for synergies and savings clearly identified

6) There was a marked increase in deliveries of aggregates and ready-mix concrete Within this result, Aggregate Industries UK accounted for a total of 21 million tonnes of aggregates and 2 million cubic meters of ready-mix concrete The company also sold 5 million tonnes of asphalt However, sales in our core cement business also increased

in most markets We recorded a substantial increase in volume in Switzerland, while the recession in the German construction sector continued to depress deliveries In Spain and France, we were very satisfied with the business development Despite a decline in the market as a whole, our Italian Group company exceeded its previous years' sales volume We achieved the greatest percentage volume growth in Russia and Romania All European Group companies improved their financial results, some of them significantly The inclusion of the UK company Aggregate Industries also had a favorable impact on performance Operating EBITDA increased by 34 percent despite higher energy costs in Europe Internal operating EBITDA growth came to 11 percent The integration of Aggregate Industries is proceeding according to plan This also applies to the synergies of 100 million Swiss francs announced at the time of the acquisition The synergies and savings potential identified now amount to more than

this figure – two thirds being applied in the operating segment and around one third being realized through fiscal and financial measures A systematic Group-wide

efficiency program in the segments "Aggregates" and "Other construction materials and services" is playing a key part in this A proportion of the operating synergies were taken to the income statement in 2005 The bulk of the savings at Aggregate Industries and in the Group as a whole will be realized from 2006 onward as planned

Construction activity solid in Canada, but second half weaker

7) The US economy continued to expand in 2005 and demand for building materials reached new peaks Capacity bottlenecks led to an above-average rise in clinker and cement imports In Canada, the construction sector experienced a slight pause in growth in the second half of the year, with a slowdown in residential construction

activity in particular

8

2005 annual res ults

Operations in North America

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

8) On the North American continent, the acquisition of Aggregate Industries resulted in Holcim gaining 77 aggregates plants, 95 ready-mix concrete facilities and 43 asphalt operations This means that in the US too we took a major step towards expansion The Group companies Holcim US and Aggregate Industries US are managed

independently However, various synergies can be realized, e.g in logistics and

through the combination of procurement activities in the "North America Purchasing Organization" Holcim US did its outmost to meet the higher demand for cement

Despite an increase in production capacity more had to be imported A start was made

on the construction of the Ste Genevieve cement plant on the Mississippi Work began

on the port facilities In addition, earth works and preparations commenced for the plant construction The investment costs for this state-of-the-art plant and the related

logistics infrastructure are assessed to be 1 billion US dollar, 130 million US dollar of which are for harbor facilities and logistics The contract with the main supplier of machinery was recently signed The plant is due to be commissioned in 2009 and

should strengthen our market and cost leadership Several US plants have also

expanded their capacity for alternative fuels On the basis of the positive experience gained, our plants in Canada have now also received permission to step up the use of alternative energy sources

9

2005 annual res ults

Facts on North America

Major expansion in aggregates, ready-mix concrete and

asphalt operations thanks to Aggregate Industries US

Further increase in cement sales and very good capacity

utilization

Earnings at St Lawrence Cement nearly offset weaker

demand on US East Coast

Holcim US is profiting from increased plant efficiency and

improved prices

In North America, operating EBITDA rises by 68 percent to

CHF 928 million

Internal operating EBITDA grows by 21 percent despite higher

energy and raw material expense

US Group companies benefit from various synergies, despite

separate operational management

9) Since being consolidated for the first time, Aggregate Industries US has sold a total

of 44 million tonnes of aggregates, 4 million cubic meters of ready-mix concrete and 8 million tonnes of asphalt In an improved price environment, Holcim US increased its cement deliveries significantly to over 14 million tonnes In Canada, St Lawrence Cement felt the impact of the slowdown in the construction sector in Ontario and

Quebec in the second half of the year Despite maintenance work carried out at the Catskill and Joliette cement plants St Lawrence still almost matched last year’s result The improvement in income from sales, coupled with further efficiency gains, made it possible to offset the rising cost of electricity and thermal energy The sharp 68 percent increase in operating EBITDA is attributable both to the first-time consolidation of Aggregate Industries and to the particularly positive business development at Holcim

US Internal operating EBITDA growth came to a pleasing 21 percent

Construction activity remained

at a generally high level Housebuilding, infrastructure projects and tourism stimulate demand for building materials

10) 2005 saw growth in Latin America continue, in some cases gaining momentum in the second half of the year Overall, cement consumption continued to rise In many Group countries there was a significant increase in residential construction activity and

in several markets, we benefited from public construction projects and the expansion of tourist infrastructure

2005 annual res ults

Operations in Latin America

processing capacity for alternative fuels and raw materials Holcim Apasco increased the proportion of petcoke at all plants The other Group companies also made

substantial progress in increasing the use of alternative fuels and mineral components

12

2005 annual res ults

Facts on Latin America

Higher sales volumes of cement and ready-mix concrete

Strong improvements in sales and results at almost all Group

companies

Mexico, Ecuador, Argentina and first-time consolidated

Cemento de El Salvador all make sizable contributions

Pressure on prices impairs financial results in Brazil and

Colombia

Progress made in use of alternative fuels

Operating EBITDA up 3 percent to CHF 1.1 billion

Slight decrease in internal operating EBITDA growth of 4

increased to 64.2 percent in the year under review The previously associated

company has been fully integrated into the regional network Holcim Apasco increased its sales of cement and ready-mix concrete In the context of restructuring measures in Ecuador, we significantly increased our profitability in the aggregates and ready-mix concrete segments The operating EBITDA of Group region Latin America increased by

3 percent However, adjusted for consolidation effects, regional EBITDA growth

decreased by 4 percent due to the ongoing erosion of prices in Brazil and Colombia

2005 annual res ults

Africa Middle East

Generally positive economic climate

Private and public investments boost demand for construction materials

Very robust development in South Africa and Morocco

13) In Africa and the Middle East, economic developments in the construction sector were generally positive, however driven very much by local factors Cement

consumption increased primarily as a result of the construction of housing

developments in urban areas and the expansion of tourist infrastructure In South Africa, demand for cement has now been increasing for five years without interruption

14

2005 annual res ults

Operations in Africa Middle East

15

2005 annual res ults

Facts on Africa Middle East

All Group companies profiting from friendly market

Sales increases across all segments; strong rise in deliveries of

ready-mix concrete in South Africa

Improved market prices and higher capacity utilization

underpinned local results

Holcim Lebanon profits from additional export opportunities

Operating EBITDA increases by 27 percent to CHF 614 million

Supported by all Group companies, internal operating EBITDA

grows 22 percent

15) All Group companies in this region took advantage of the good market situation As

a result, deliveries increased in all segments, in some cases markedly Holcim South Africa posted a higher contribution to results, not least owing to the brisk demand for aggregates and ready-mix concrete Thanks to the favorable price situation and higher delivery volumes, Egyptian Cement and Holcim Lebanon also significantly improved their financial performance The results of the Group companies in Morocco and the Indian Ocean were substantially better than the previous year Overall, Group region Africa, Middle East made remarkable progress Operating EBITDA increased by 27 percent and internal operating EBITDA growth reached 22 percent

Strong increase in cement consumption

16) Asia Pacific: The economy continued to perform well However, in the second half

of the year the pace of growth was dampened by higher energy prices and rising interest rates Demand for construction increased in all regional Holcim markets, with the main stimuli coming from private and public sector residential construction and from the expansion of energy supplies and transport networks

17

2005 annual res ults

Operations in Asia Pacific

of our acquisitions In Vietnam, we advanced with planning for the construction of an additional kiln line

2005 annual res ults

Facts on Asia Pacific

All big Group companies post increase in cement sales

Significantly higher volumes of ready-mix concrete delivered

Substantial contributions to results from the Philippines,

Thailand, Vietnam and Indonesia

A sound market plus efficiency increases produce attractive

results in Australia too

Operating EBITDA up 23 percent to CHF 570 million

Internal operating EBITDA increases 16 percent

Ambuja Cement Eastern consolidated since April 2005 and

The Associated Cement Companies since February 2006

In India acquisitions of 34 million tonnes of cement capacity

within 12 months, including Gujarat Ambuja Cements

Platform to expand network in the Indian Ocean

18) Almost all Group companies increased their cement sales In some urban centers, our Group companies sold significantly more ready-mix concrete Siam City Cement in Thailand and Holcim Indonesia recorded the strongest increases in terms of volume Both companies benefited from increasing domestic demand for cement and from a rise in exports We sold significantly larger volumes in Sri Lanka and Bangladesh Holcim Vietnam saw a sharp rise in deliveries Practically all companies turned in a stronger performance For the first time, India also made a contribution to earnings The operating EBITDA of Group region Asia Pacific rose by 23 percent Internal operating EBITDA growth came to 16 percent I would like to point out that the new acquisitions in India have yet only had a minor impact on the 2005 income statement Ambuja Cement Eastern has been consolidated since April 2005, but ACC, which is of greater significance, will only be consolidated as of this February This means that we shall only be reporting India's full contribution during the current year Within a very short space of time, we have established a unique strategic foothold in India with substantial shareholdings Furthermore, the two companies acquired last year have already been successfully integrated into the Holcim Group

To sum up in note form:

Clear understanding and agreement on the strategic focus as well as operational priorities between Holcim and local Board and management

Continuity on the top management level

Positioning Holcim representatives in key positions such as CFO and CIO

Focusing on core business through already realized sales of non-strategic

participations

Short-term measures to increase production capacity

Structured approach to develop services in alternative fuels and raw materials And finally, on January 24, Holcim assumed the majority on the Board of ACC

We were able to expand our partnership with the founding families of Gujarat Ambuja Cements and this year we acquired a significant share package in India's third-biggest domestic cement producer Today, Holcim holds participations in 34 million tonnes of cement capacity in India We have already provided detailed information on these developments and today, I merely propose to take stock of the current situation

We are confident that the Foreign Investment & Promotion Board and the Securities & Exchange Board of India will soon give its approval for the takeover of Gujarat Ambuja Cements We intend to launch the public purchase offer for an additional 20 percent of the share capital immediately afterwards India is set to enjoy growth rates between 8 and 10 percent over the coming years We intend to exploit these opportunities, while

at the same time strengthening our network in the Indian Ocean An initial step in this direction came with February's announcement of our market entry into the United Arab Emirates

2005 annual res ults

Key financial figures

+/-1 restated in line with new and revised IFRS, effective January 1, 2005

2 excludes the amortization of goodwill and other intangible assets

3 proposal of the board of directors

19) For Holcim, 2005 was another year with a very strong financial performance Overall, net sales increased by 40 percent, operating EBITDA by 29 percent and operating profit by 47 percent Net income rose by 62 percent and cash flow from operating activities by 30 percent These increases are due to changes in the

consolidation structure, and the new accounting principles under IFRS However, most important was the internal growth of roughly 10 percent

20

2005 annual res ults

Major changes in the scope of consolidation

Effective as at Cement

capacity

+/– Various smaller companies

20) The major changes in the scope of consolidation in 2005 were the first-time

consolidation of Cemento de El Salvador, Aggregate Industries and Ambuja Cement Eastern The company in El Salvador added 1.7 million tonnes of cement capacity per annum and the company in India 2 million tonnes, whereas Aggregate Industries’ businesses are aggregates, ready-mix concrete, asphalt and other building materials and services