concentrate on what we can influence the financial dimension and what''''s in the cards theophil h schlatter cfo holcim group st louis september 15 2010 holcim ltd

Reducing financial leverage while seizing investment opportunities Funds from operations / Net financial debt Group target range Business portfolio in Australia completed 14.3 million

Concentrate on what we can influence:

The financial dimension and what's in the cards

Theophil H Schlatter – CFO Holcim Group

St Louis, September 15, 2010

Executive Summary

• Thanks to swift operational measures Holcim’s profitability

preserved at 9.1% ROIC despite Global Financial Crisis

• Financial profile strengthened:

Liquidity increased, maturities extended, bank financing

reduced, rating maintained

• Capacity expansion program pursued, acquisition

opportunities seized

• We are stronger than before the crisis, thanks to our

 Highly passionate people committed to perform

 Modern asset base

 Sound financing and

 High liquidity

• Holcim will benefit from the upswing and has the strength for value creating acquisitions

What happened since 2007?

• Mumbai, 26 – 28 September 2007

The world experienced an unprecedented crisis.

• However not without hope …

• but …

1)at PPP, current international dollar, based on IMF data per April 2010 (including China)

Agenda

1 How did we manage in the crisis?

2 Look forward

"We give a high priority to a solid balance sheet and a high

level of liquidity We are convinced that we can emerge from the current economic cycle stronger than before, and that the 'post-crisis Holcim' will be a better company than the 'pre-

crisis Holcim'."

Excerpt of the Shareholder's letter of the annual report 2008,

Rolf Soiron, Chairman of the Board of Holcim Ltd, Markus Akermann, Chief Executive Officer of Holcim Ltd,

March 4, 2009

Holcim could not escape the crisis but profitability

maintained on high level – targets confirmed

• Holcim Value Added target > 0

 defined as (EBIT – WACC before tax x invested capital)

 Equivalent to ROIC before tax > WACC before tax

Holcim improved its efficiency in a difficult environment

Robust cost management makes up for falling volumes

Return targets Holcim Value Added (HVA)>0 and ROICBT>11.76%

Operating EBITDA target cementitious materials: 33%

Operating EBITDA target Aggregates: 27%

Holcim stabilized the overall entrepreneurial risk by

actively lowering the financial risk

Holcim assessment

Holcim risk mitigation

Financial measures Operational

measures

Operational measures: Cement, aggregates and ready-mix concrete are price inelastic, right sizing has top priority

• Holcim people highly committed to performance management

 Focus on price stability

 Fixed cost reduction and efficiency improvements

Variable costs -5%

Financial measures: Liquidity secured, maturities extended, dependency on bank financing reduced, rating maintained

Focus on Cash flows

• September 2008: CHF 1bn credit lines drawn to test the banks abilities

Achievements (mio CHF) 30.6.08 30.6.10

• Liquidity III (incl CC) 6'309 8'689

Capital markets Equity incl.

minorities

Equity incl.

minorities

Capital markets

Banks Banks

0 10'000 20'000 30'000 40'000

CHF m

47%

of total fin.

liabilities

62%

of total fin liabilities

Financing activities 2009 mio CHF

Committed credit linesLiquidity II

Loans Capital markets

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

Maturity profile as of 30.06.2010

Reducing financial leverage while

seizing investment opportunities

Funds from operations / Net financial debt

Group target range

 Business portfolio in Australia completed

 14.3 million tons of cement capacities

commissioned until June 30, 2010

 Strengthened balance sheet

 Dividend policy maintained

 Reduced debt by CHF 1 billion

2009

858 Dividends paid

2'285

Financial investments

1'929

Capex to expand Capex to maintain 376

1)Funds from operations/ Net financial debt per 2007 adjusted for gain of sale of Holcim South Africa

• In total 1’739 investors took part in the poll, which included individual nominations for 775 separate borrowers

Source: Euromoney, June 4, 2010

Strengthened financial profile recognized – great access

to capital markets

Agenda

1 How did we manage in the crisis?

2 Look forward

“Emerging market dynamics and recovery of construction

activity in mature markets drive demand."

Markus Akermann, Chief Executive Officer of Holcim Ltd,

September 14, 2010

Mature Europe set to recover from recession Well

estab-lished brand and products assure benefits in upswing

Mature Europe

• Investment in Aggregate Industries UK in 2005

• 2 old plants with 0.8 million tons of clinker capacity closed/mothballed

• Fixed cost savings of CHF 242 million

• 2009 clinker capacity utilization 71% 2)

• Sustainable solution provider: Olympics 2010 (UK), Nord Stream (Baltic

Sea), Alptransit (CH), Liefkenshoektunnel (NL)

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

2)Excluding mothballed plant

today

Emerging Europe strong recovery forecasted;

efficient capacity in place

Emerging Europe

• 0.9 million tons new clinker capacity commissioned (Romania in 2008,

Bulgaria in 2009) Further capacity of 3.8 million tons coming on stream in

Russia (2010) and Azerbaijan (2011)

• 3 old plants with 1.4 million tons of clinker capacity closed/mothballed

• Fixed cost savings of CHF 84 million

• 2009 clinker capacity utilization 73% 2)

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

2)Excluding mothballed plants

today

• 4 old plants with overall 3.4 million tons of clinker capacity mothballed/closed

• Fixed cost savings of CHF 256 million

• 2009 clinker capacity utilization 53% 2)

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

2)Excluding mothballed plants

today

Latin America maintained its op EBITDA contribution;

GDP growth expected to recover to 6%

Latin America

• Deconsolidation of Venezuela reduced capacity by 2.4 million tons in 2009

• New capacities of 4.1 million tons will be realized in 2010/2012 (Mexico,

Colombia in 2010 and Ecuador in 2012)

• Fixed cost savings of CHF 148 million

• 2009 clinker capacity utilization 73% 2)

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

2)Excluding mothballed plants

today

Africa Middle East crisis resistant & remaining at high level; Reduction in Net Sales due to deconsolidations

Africa Middle East

• Deconsolidation of Holcim South Africa (2007) and Egyptian Cement

Company (2008) reduced clinker capacity by overall 7.2 million tons

• New plant in Morocco commissioned 2007 (1.5 million tons)

• 2009 clinker capacity utilization 92%

Africa Middle East

Net Sales, operating EBITDA (million CHF) GDP growth

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

today

Foresight investment in Asia Pacific paid off: Strong op

EBITDA contribution; further dynamic growth expected

Emerging Asia Pacific

• In 2005/2006, Holcim acquired ACC Ltd and Ambuja Cement Ltd in India

• Cement capacity in India increased since 2005/06 by 20 million tons

Further capacity increases in India and Indonesia of overall 5.2 million tons coming on stream in 2010/2013

• 2009 clinker capacity utilization 91% 2)

• Huaxin platform in China not yet consolidated, offers additional potential

Emerging Asia Pacific

Net Sales, operating EBITDA (million CHF) GDP growth

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

2)Excluding mothballed plants

today

Well integrated business in Australia and New Zealand

achieved; GDP growth expected >5%

Mature Asia Pacific

• Acquisition of Holcim Australia and additional 25% stake in Cement

Australia in Q3 2009 will boost sales and operating EBITDA in this region

from 2010 onwards

• 2009 clinker capacity utilization 59% 2)

Proforma full year figures for Australia businesses

Mature Asia Pacific

1)GDP at PPP in dollar (IMF April 2010), weighted by Sales Volumes of Holcim

2)Excluding mothballed plant

Net Sales

op EBITDAGDP growth

today

Geographical diversification mitigated mature market slump Great potential due to strong global market position

Holcim Group

• 2005/2006 expansion of Aggregates and Other Construction Materials and Services

business through acquisition of Aggregate Industries Ltd UK and US, Foster Yeoman

Limited UK

• 2005/2006 acquisition of ACC Ltd and Ambuja Cement Ltd in India

• 2009 acquisition of Holcim Australia

• Deconsolidation of South Africa (2007), Egypt (2008) and Venezuela (2008)

• Modern high efficient cement production facilities due to ongoing investment 2008 – 2013 (overall 26 million tons of capacity)

today

Strength Performance Passion.

Entrepreneurial Risk formula

interest equity

debt equity

debt 1

capital invested

cost total

Revenue equity

Leading to the simplified formula 1) :

1)Assuming no correlation between MR, PRand FR