aggregate industries us an overview will glusac ceo ai us st louis september 15 2010 holcim ltd

Aggregate reserves are plentiful in all regions Resources 2009 [M t] Depletion 2009 [M t] Useful Life R&R Years Useful life numbers for each region includes resources.. Integrated with a

Aggregate Industries US – an overview

Will Glusac – CEO AI US

St Louis, September 15, 2010

Executive Summary Aggregate Industries US (AI US)

crisis began

eight regions existed in the past

margin target in aggregates with the recovery

Agenda

AI US participates in Aggregates, Ready-mix Concrete, Concrete

Products and Asphalt

Transactional

Mortars

Ready -mix Concrete

Asphalt

Concrete Products Direct Sales

Direct Sales

Traders Wholesalers Retailers

Traders Wholesalers Retailers

End - users

General Contractors

Civil Engineering

Channels

Transformational

Masons Self - builders

Demand

A p p

l i c a

t i o n s

Applications and Construction Fields

In US, we operate two separate companies to effectively execute on

our twin leg strategy

entrepreneurial spirit and freedom in the companies This ensures strong local management which is an integral part of Holcim’s strategy

Materials (ACM) are two distinct businesses ACM has:

base

a significant cost component

ACM business rather than vertical integration

Our broad product offerings execute our twin leg strategy

tons

which we operate

gravel operations – 56 of which are operating due to the economic downturn

1 Resources are unpermitted known reserves on operational sites

Aggregate reserves are plentiful in all regions

Resources 2009 [M t]

Depletion 2009 [M t]

Useful Life (R&R) Years

Useful life numbers for each region includes resources Resources are unpermitted known reserves on operational sites

yards

regions which we operate

which are operating due to the economic downturn

regions which we operate

capacity to supply warm mix asphalt, which consumes less energy and results in lower carbon emissions

Integrated with asphalt paving services in each region and an

earthwork and structural construction business in Vegas

supplying quality aggregate, earthwork, asphalt products and contracting services to the greater Las Vegas area for over 40 years

highway and structure services for private and commercial enterprises and large public works construction, such as bridges and overpasses

Agenda

• Main decline is in the residential sector (-75%)

• Infrastructure sector remained relatively constant due to consistency in state spend (boosted by the federal stimulus package)

AI US area construction spending (B $)

Historical US aggregate volume (M tons)

3 North Central Region

8 South Carolina Region (Hardaway)

7 Atlantic Region

Mid-6

Northeast Region

5 Central Region

4 Meyer Material

Market conditions have led to a reorganization

3 Northeast Region

4 Atlantic Region

Mid-2 Midwest Region

1 Western Region

• Move from 8 regions to 4

• Reduced average employees from 5,000 to 2,700

• Aligned processes to develop best practice structure

• 6 stone sites, 17 sand and gravel sites, 54 ready mix plants and 11 asphalt plants are currently closed

0 100

• Reviewed all customer accounts to assure credit worthiness

• Aligned inventory levels with decreasing demand

• Renegotiated vendor terms

• AI is a seasonal business resulting in higher DSO values in the winter months

• DSO improved even as the economy worsened

• Daily focus on accounts receivable collection results

Net Working Capital (M $)

DSO (day sales outstanding)

1 12 month average net working capital reduction

Agenda

As the economy declined, AI results were impacted commensurately

• AI grew its business through acquisitions early in the decade The business combinations in 2007 and

2008 failed to grow overall revenue as the economy slumped

• As volume dropped, margins and profitability have suffered

• Aggressive reductions in fixed cost have stabilized the margins and positioned the business well for significant profit increases when volumes return

We have created a strong and lasting culture which focuses on

improving operating efficiency and reducing costs

aggregate and ready-mix segments

specific action plans

existing business across the company

working in conjunction with local management

detailing the expected improvement

 Rockville, Sloan, Accokeek, Wrentham, Taunton

 Meyer and Twin Cities ready mix

Raw Materials and Delivery Costs

The transformation to world class safety results

working at lost time incident reduction by seeking out unsafe conditions and acts and managing them

focusing on restricted-duty reportable reduction via observation and case-management

Lost time frequency rate = No of LTI cases*1,000,000/Actual Hours Worked

AI US Experience Modifier Rate (Work Comp Insurance)

EMR (insurance rating) rating of less than 1.0 indicates that the company’s claim

history company is performing better than would be expected

We continuously invest in technologies that allow the reduction of carbon footprint in our manufacturing processes

Agenda

PCA and McGraw Hill are forecasting a sharp recovery

• Infrastructure spending has seen a steady increase based on highway programs authorized by Congress PCA

is forecasting a continued steady increase of infrastructure spending based on a new highway bill

• Residential also saw a big and sustained increase especially from early 2000’s However, the downturn has resulted in an ‘over correction’ of residential spending PCA is forecasting

a significant rebound

• The non-residential and Other segments have also seen similar reduction in spending in the current downturn

efficiencies are important

• Given the severity of recession, it is likely that we will see above normal growth rates in volume for a few years with the recovery However, the pace of this recovery is unclear at this time

• The three scenarios of volume and price increases required to achieve 27% EBITDA margin are

presented below

 Volume +20%, Price +$1.25/ton

 Volume +30%, Price +$0.75/ton, Cost

-$0.25/ton

 Volume +37% (PCA 2013 Forecast), Cost

-$0.70/ton

• AI US prices have remained consistent

• AI US peak sales volume of 50.8M tons in 2005 was 25.0M higher than 2010 Forecast This precipitous decline of 49% occurred even as we made

acquisitions

• The sustainable cost reductions allows AI US to achieve the target EBITDA margin much quicker during recovery

EBITDA margin impact

Volume and price development

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

As part of Holcim's global commitment to compliance with competition laws, please note that this presentation has been comprehensively reviewed by

counsel in both the United States and Switzerland

Strength Performance Passion.