deutsche bank swiss equities conference 2011 holcim ready to shift gears bernhard a fuchs head investor relations

Create value from our asset base and superior positioning Customers needs and our position in the market Operational performance excellence People development Resources management excel

© Holcim Ltd 2011

Deutsche Bank Swiss Equities Conference 2011

Holcim – Ready to shift gears

Bernhard A Fuchs – Head Investor Relations

May 18, 2011

Agenda

1 Strategy & positioning based on long term growth

2 Performance driven management teams

3 Ready to shift gears – cash generation capacity

4 Conclusions

Founded 1912, Holcim expanded over time and is present today in the most attractive construction markets worldwide

anchored in local markets

38.9%

Latin America Africa Middle East Asia Pacific

Europe North America

Net sales 1 Op EBITDA 1

14.6%

9.8%

The emerging markets show growth while the mature

economies continue to seek traction

Annual GDP growth in percent

Source: IMF World Economic Outlook Update April 2011

Mature Total

Emerging Total

• Stimulus measures quickly changed to austerity measures in

mature markets

• Strong growth continuing in Asia Pacific and parts of Latin America

Holcim’s strategy remains consistent through the cycle

Positioning – Holcim’s cement market portfolio

Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, April 2011

GDP per capita (at PPP) CAGR 2010 - 2014E

Cumulated population

growth 2010 - 2014E

Western Europe 27.0 Mt

Eastern Europe 23.9 Mt

Africa Middle East 27.2 Mt

Size of circles represents influenced capacity 2010

North America 23.2 Mt

India 54.0 Mt

China 54.7 Mt

Asia Pacific excl

India, Oceania, China

46.3 Mt

Latin America 36.6 Mt

Demand growth

Oceania 4.9 Mt

Positioning – Holcim’s aggregates market portfolio

America 12.2 Mt

North America 39.2 Mt

Asia excl

Oceania 3.2 Mt

Size of circles represents consolidated sales volumes 2010

Eastern Europe 8.2 Mt

Demand growth

GDP per capita (at PPP) CAGR 2010 - 2014E

Cumulated population

growth 2010 - 2014E

Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, April 2011

Oceania 23.2 Mt

Our geographic portfolio captures the long term demand drivers

Population growth (2010 – 2050)

Urbanization (2010 – 2050)

Refurbishment (2010 – 2050)

Holcim sales split development

Holcim operating EBITDA split development

• Additional 2 billion people (+40%) in emerging markets

average in mature markets

modernization / replacement projects

Source: United Nations (World Urbanization Prospects & World Population Prospects - 2010), Oxford Economics, March 2011

“Popurbanization” = population growth + urbanization shifts the urban population from ~ 50% to ~ 70% in 2050

Source: United Nations (World Urbanization Prospects - 2010)

0 1'000 2'000 3'000 4'000 5'000 6'000 7'000

GDP / capita emerging markets

Mature markets Emerging markets

The boost in demand will be strongly driven by the evolving middle class in the emerging markets…

Sources: Oxford Economics, March 2011, The Economist, Pocket World in Figures, 2011, Euromonitor International, March 2010

the number of middle class households increase from around 150 million to over 300 million

Global construction outlook still rock-solid and dynamic!

With a presence in 13 out of 15 top construction markets

Holcim is very well positioned to capture growth opportunities

Largest construction markets (global ranking)

Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, March 2011

Agenda

1 Strategy & positioning based on long term growth

2 Performance driven management teams

3 Ready to shift gears – cash generation capacity

4 Conclusions

Create value from our asset base and superior positioning

Customers needs and our position in the market

Operational

performance

excellence

People development

Resources management excellence

„Glue“ of the Holcim culture Create value from

our asset base and superior positioning

Customers needs and our position in the market

Operational

performance

excellence

People development

Resources management excellence

„Glue“ of the Holcim culture

Holcim’s success resides in local management teams who excel in the following five areas

customers and our customer‘s customers really need

geared to this end

Focus on customer needs and our positioning in the market

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Transactional

Mortars

Ready -mix Concrete

Asphalt

Concrete Products

Cementitious Materials(cement,mineralcomponents)

Direct Sales

Infrastructure

Commercial / Industrial Building Housing

Demand Supply

Basic Materials Processing

Direct Sales

Aggregates(sand, gravel, stone, recycled aggregates)

l i c a

t i o n s

Applications and Construction Fields End - users

General Contractors

Civil engineering contractors

Masons, Self - builders

Channels Transformational Transactional

Mortars

Ready -mix Concrete

Asphalt

Concrete Products

Cementitious Materials(cement,mineralcomponents)

Direct Sales

Infrastructure

Commercial / Industrial Building Housing

Demand Supply

Basic Materials Processing

Direct Sales

Aggregates(sand, gravel, stone, recycled aggregates)

l i c a

t i o n s

Applications and Construction Fields End - users

General Contractors

Civil engineering contractors

Masons, Self - builders

Channels Transformational

Pulling from the customer side

expertise and facilitate knowledge turntable

Operational performance drives margins

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

HR Management

Sustainable Development

Customers, products & services

Operational management

General / Finance

Focus targets

Manufacturing Performance Concept – various layers

Operational performance excellence in Cement

facturing Excellence

Manu-Measuring excellence in cement manufacturing

Best in class

Best in class Plant X

Best in class

Best in class Plant X

Benchmarking fosters continuous improvement

AFR – Alternative Fuels and Raw Materials

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Analysis of the whole process from quarry to lorry

Manufacturing Performance Review

Underperforming kiln line

Kiln Watch List

Top Class Maintenance

Sustainable high equipment availability at adequate maintenance costs and replacement investments For strategic development of the plant

Plant Master Plan

Plant Fitness – toolbox and focus

Key Performance Improvement Products & Services

Operational performance excellence in Aggregates

Methodology – Overall Performance Enhancement

Operational Performance

Monitoring Reporting Activities Tools

Evaluations, Results plans Daily/weekly operating reports, Energy reports

Daily/weekly reviews, Action log updates, Plant tours

Short interval control, Lost time tracker, Daily checklist, Maintenance schedule, Energy monitoring

OPE

AGG Operational Reviews (AOR) Overall Performance Enhancement Maintenance Processes for AGG AGG Managers Training

Performance Excellence

in AGG 1

Example AOR – Review of reserves & mining practices Example: AOR – Process Optimization

AGG – Aggregates

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Key Performance Improvement Products & Services

Operational performance excellence in Ready-mix Concrete

Delivery pattern in 2007: Optimized delivery pattern:

(with current Progresul plant)

Delivery pattern in 2007: Optimized delivery pattern:

(with current Progresul plant)

• Data input

• Data analysis

• Numerical Mix Design Optimization (MDO)

• Perform comparative fresh concrete tests (in lab and/or plant)

• Prepare samples for testing hardened concrete properties

• Testing hardened concrete properties (cubes/cylinders)

• Analysis of test results

• ev fine-tuning of Mix Design

• Put optimized Mix Designs into production

Performance Excellence

in RMX

Methodology: Concrete Operational Review

MARKET & SALES

Consumption Centre

Strategy Implementation and Market Positioning

PRODUCTION

Plant Level Plant Level

CONCRETE TECHNOLOGY

Management & Organisation

DISTRIBUTION

Consumption Centre

Maximizing Fleet Efficiency, Resources and Productivity

Maximize Operational Efficiency/Productivity

Minimize Mix Cost & Optimize Process Control

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Our people drive Holcim – maintaining the “glue” and integrity of the Holcim culture

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Strength Performance Passion.

Our people drive Holcim – people development

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Holcim Leadership Competency Model

Vocational Education / Apprenticeship Schools

Manuf Workforce Training Basic Trade Skills

Core Curriculum Dialogue Training

Management Education

Executive Education

Vocational Education / Apprenticeship Schools

Manuf Workforce Training Basic Trade Skills

Core Curriculum Dialogue Training

Management Education

Executive Education

Our people drive Holcim – development programs for all levels to raise competencies and to build talent pools

Total personnel ~80,000

~30,000 employees

TML

MML SML

FML

local management programs

programs

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

~50,000 employees

Our people drive Holcim – iShare Knowledge Management System enables our people to access & multiply expertise

• Sharing documented knowledge – 20,000 knowledge assets are accessed monthly

• Connecting experts and peers – > 30 professional communities e.g AFR, MIC, Maintenance, Branding, Masonry

Project start

Knowledge asset database

System roll-out

in pilots

Group-wide launch

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

We understand Sustainable Development as responsible resource management in a broad sense

Create value from

our asset base and

„Glue“ of theHolcim cultureCreate value from

our asset base and

„Glue“ of theHolcim culture

Creation of Value

Mindsets Strategy Goal

Base

Diversification

Local Management Global Standards

People

Better Cost Management

Permanent Marketing Innovation

Human Resources Excellence

Corporate Social Responsibility

Sustainable Environmental Performance

Agenda

1 Strategy & positioning based on long term growth

2 Performance driven management teams

3 Ready to shift gears – cash generation capacity

4 Conclusions

Mature market recovery combined with emerging market growth offer substantial operating EBITDA potential

Additional operating EBITDA potential of around CHF 2 bn

~ CHF 1 bn

Emerging markets

Growth capacity expansion

~ CHF 500 m

Operating EBITDA sensitivities to price, volume and cost

Sensitivity based on FY 2010 results

-FY 2010 Sales volume

+5%

Sales price +5%

Variable costs -5%

Asset divestments and Net working capital / sales

Working capital management, pruning of assets and

expansion capex paved the way for profitable growth

A stringent focus on efficiency improvements and asset divestments contributed to the financing of expansion capex and thus a

considerable increase of capacities of 29 mt (2008 – 2013)

0 1'000 2'000 3'000 4'000 5'000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Maintenance (CHF 10.7 bn) Expansion (CHF 13.5 bn)

Holcim investment criteria –

set to secure long-term above average returns

Success factor – rigorous investment analysis and discipline

Diversification

Local Management Global Standards

with maturity profile of

the respective market

Agenda

1 Strategy & positioning based on long term growth

2 Performance driven management teams

3 Ready to shift gears – cash generation capacity

4 Conclusions

Conclusions – Holcim is ready to shift gears

success

Holcim is very well positioned to benefit from demographic trends such as “Popurbanization” – in mature markets,

infrastructure renewal will support demand

management and a strong succession pipeline is the base for continuous success

with the potential for additional operating EBITDA lend

ample financial flexibility to grasp growth opportunities

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.

the third quarter 2011

annual results for 2011

Contact information and event calendar

Strength Performance Passion.