holcim canada an overview paul ostrander ceo holcim canada st louis september 15 2010

Heavily urban areas normally demand a vertically integrated structure whereas cement and construction services move across the country • Holcim Canada offers solutions to customers in a

© Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010

Holcim Canada – an overview

Paul Ostrander – CEO Holcim Canada

St Louis, September 15, 2010

Executive Summary Holcim Canada

• Holcim Canada is structured to meet the needs of the markets in

which it operates Heavily urban areas normally demand a

vertically integrated structure whereas cement and construction services move across the country

• Holcim Canada offers solutions to customers in a variety of

approaches from direct supplier to design and build partnership relationships

• Holcim Canada is currently participating or looking forward to

participating in over $35B of projects, most are directly in the

core markets

development to improve stakeholder relationships, reduce costs and provide innovative solutions to customers

Agenda

Holcim Canada will soon celebrate 60 years of operations in Canada with a history dotted with strategic acquisitions and growth

Atlas Realty (later

on Montreal &

Toronto Stock Exchanges

Acquisition of Dufferin assets

Acquisition of 50%

share in Quebec Ready-Mix & De-

Mix

Acquisition of Joliette cement plant & Ontario concrete operators (Boehmers &

Peninsula)

Acquisition of cement plants in Catskill New York and Hagerstown Maryland

Creation of strategic waste recycling committee (AFR at Joliette in 1994)

Acquisition of NorthStar Cement (Nfld) and GormleyAggregates

Acquisition of TCG, Acton and Mosport

Launch of sharedservices

Installation of vertical roller mill & clinker cooler Acquisition of Ontario Redi-Mix & Beton Grilli

& Lunick

St Lawrence Cement becomes Holcim Canada

Holcim Ltd

buyout of St

Lawrence Cement minority shareholders

Matured vertical integration strategy to focus on areas surrounding cement

plants

Holcim Canada is a fully integrated player in the highly populated

Greater Toronto (GTA) and Greater Montreal (GMA) markets

GTA GMA

GMA

GTA

Cement Plant Aggregate (8) Ready-Mix (20)

Cement Plant Aggregate (5) Ready-Mix (9)

The Canadian economy is closely linked to that of the United States As such there has been an economic impact but this impact has thus far been mitigated and there was a strong rebound in late 2009 and early 2010

CAD US (incl imports)

Housing Starts (% Change)

-50 -25 0 25

2005 2006 2007 2008 2009 2010 2011

CAD US

Source: PCA 2010 Summer Forecasts for the US and Canada, August 2010

Holcim Canada has a commitment to Sustainable Development with Corporate Objectives for OH&S, Environment and Social initiatives

LTIFR – Lost Time Incident Frequency Rate

Holcim Canada is well integrated into the Value Chain with a broad customer base ranging from product supply of cement to solutions providing construction services

Holcim Canada optimizes vertical integration in the value chain while improving delivery mechanisms for new product introduction & optimization of existing products

35% of cementitious volumes and 39% of aggregate volumes flowed through our vertically integrated channels in 2009

Transactional

Mortars

Ready-mixConcrete

Asphalt

Concrete ProductsDirect Sales

Civil Engineering

Channels

Transformational

MasonsSelf - builders

Demand

App

l ica

t ions

Applications and Construction Fields

Cementitious products are part of Holcim Canada’s twin leg strategy

• Vertical roller mill (VRM)

Slag cement for CO2 reduction

• Alternative fuel utilization Energy cost savings & SD

Margin improvement through performance

only located within 50 km of large urban centers but they are also connected to a transportation network by ship, rail and truck

• Joliette’s offering of an efficient logistics solution was key in securing Societe d’energie de la Baie James (SEBJ) project

Aggregates is critical to vertical integration and Holcim Canada not only has the closest aggregates to the GTA market but also has an award winning

rehabilitation program

Useful Life Reserves & Resources (yrs)

Greater Toronto Area

0 50 100 150 200

Useful Life Reserve & Resources (yrs)

Greater Montreal Area

0 50 100 150 200

RESERVES & RESOURCES

Winner of

« Innovation in Sustainable Development »

award from ACRGTQ (Quebec Construction Association) for progressive rehabilitation of the Laval quarry

Pervious concrete is a special type of high porosity concrete used where applications require water from precipitation and other sources to pass directly through

It helps reduce stormwater runoff, replenishes aquifers, protects streams and lakes and allows water and oxygen to reach tree roots

Ready-Mix is the optimal Business Unit in the Holcim Value Chain for solutions delivery Innovations in products and services have made the Ready-Mix

Business Units into market leaders

Specialty concretes were almost 10% of Demix Beton’s volumes in 2009

Flex concrete is a bending application used with City of Montreal as well as Montreal airport and ports

Self-Placing is fluid and homogeneous with minimal segregation and bleeding; used primarily for vertical applications

Anti-Corrosion concrete inhibits the corrosion of steel reinforcement

In 2009, Dufferin Concrete won multiple awards for a system that ensures no chute wash water is released into the environment by returning the water used

to clean the chute back into the truck’s drum

The benefits are in cost savings and also a stronger job site environment scorecard which aids in LEEDS points

LEEDS: Leadership in Energy & Environmental Design

Dufferin Construction, one of the leading highway contractors for the province

of Ontario, has been low bidder on 3 RBRs in Ottawa and Hamilton RBRs are the replacement of a highway bridge overpass over the course of a weekend where the entire bridge is removed and replaced with sectionals built in a nearby staging area RBR is not only more economical but also offers solutions to the Municipalities in terms of less traffic congestion, a shorter construction cycle and benefits to the public

Since 1975, Dufferin Construction has been responsible for ‘air-side’ snow removal at Pearson airport – a 24hrs/day, 6months/year contract 250 DCC personnel have Government of Canada security clearance and are available

on 1 hour notice

The activity not only provides cash flow and operations during traditionally slow construction months but also ensure equipment utilization over the period

Material recycling has been critical in allowing waste materials deposit sales and also in construction cost reduction

In 2009, Demix Aggregates sold 230kt of recycled aggregates primarily to Demix Construction’s A-25 PPP project Additional opportunities for asphalt recycling are being investigated to lower operating costs for construction and provide a potential revenue stream for aggregates

RAPID BRIDGE REPL

Vertical Integration has also given Holcim Canada the opportunity to move into Solutions Provider roles in large scale projects This allows the company the ability to optimize its product/service offerings

Munro Concrete Products

Ministry of Transportation

A-25 & SAB

407 ETR

A key area of growth for Holcim Canada is participation in

Public-Private Partnerships in projects across Canada

for governments to meet the public’s infrastructure needs

finance and operate components, governments can access

private sector expertise, technology and capital

Construction contract

Loan agreement

Shareholders agreement

Service agreement

Concession (30 years)

Service agreement

Technical advisers/

consultants

Maintenance Operator

Debt provider

Design Build Joint Venture

contractors/

Sub-suppliers

Service agreements

Focusing on core strategies in Greater Toronto and Montreal markets as well

as building HCA as a solutions provider will allow the company to gain full

advantage from upcoming large scale projects

GTA GMA

X X X X X X

X X X

X X X X

X X X X

M

X X X

X X X

X X X X

X X

S

Completed

2012 - 2017 2,500

Turcott

2011 - 2017 2,000

Windsor Essex Parkway

Pending

Ongoing 350

MTQ Highways (A-25)

Ongoing 300

MTO Highways

2007 - 2012 5,000

James Bay (Sarcelle & Rupert)

2005 - 2013 1,600

Sir Adam Beck Tunnel

Current

2012 – 2021 8,000

Churchill Falls

Future

2012 - 2015 1,000

407 ETR East

2010 - 2015 400

Calgary Airport

2010 - 2020 9,500

MetroLinx

(York BRT, Sheppard LRT, Scar

RT, Finch LRT, Eglington LRT)

2012 – 2015 6,000

Hebron Platform

2009 - 2015 2,400

PanAm Games

2005 - 2025 4,200

Vancouver Airport

1991 – 1997 6,000

Hibernia Platform

2002 - 2007 2,000

James Bay (Eastmain 1)

2011 - 2013 2,200

Inco Smelter (Nfld)

1998 – 2010 4,500

Toronto Airport (GTAA)

1995 - 1998 1,000

Highway 407 ETR

Est Project Value ($M CAD) Timeline Project

X X X X X X

X X X

X X X X

X X X X

M

X X X

X X X

X X X X

X X

S

Completed

2012 - 2017 2,500

Turcott

2011 - 2017 2,000

Windsor Essex Parkway

Pending

Ongoing 350

MTQ Highways (A-25)

Ongoing 300

MTO Highways

2007 - 2012 5,000

James Bay (Sarcelle & Rupert)

2005 - 2013 1,600

Sir Adam Beck Tunnel

Current

2012 – 2021 8,000

Churchill Falls

Future

2012 - 2015 1,000

407 ETR East

2010 - 2015 400

Calgary Airport

2010 - 2020 9,500

MetroLinx

(York BRT, Sheppard LRT, Scar

RT, Finch LRT, Eglington LRT)

2012 – 2015 6,000

Hebron Platform

2009 - 2015 2,400

PanAm Games

2005 - 2025 4,200

Vancouver Airport

1991 – 1997 6,000

Hibernia Platform

2002 - 2007 2,000

James Bay (Eastmain 1)

2011 - 2013 2,200

Inco Smelter (Nfld)

1998 – 2010 4,500

Toronto Airport (GTAA)

1995 - 1998 1,000

Highway 407 ETR

Est Project Value ($M CAD) Timeline Project

Holcim Canada has provided a level of consistency through a very turbulent economic period Economic stimulus funding, a strong organizational structure and management expertise are principal factors

NET SALES & EBITDA • Canada has been able to weather the economic storm more

effectively than other countries and Holcim Canada is well positioned in two metropolitan areas which are the main economic drivers for the country

• At the same time, Ontario and Quebec are more strongly focused

on a manufacturing industry base, and thus the importance of cement product and construction services throughout the country offers risk mitigation

2007A 2008A 2009A 2010F

Holcim Canada maintains a clear focus on employees, particularly employee development including the movement of employees throughout the business segments to improve employee learning

In 2010 Holcim Canada instituted an executive and senior management company objective in the area of coaching In addition to development, the transference of knowledge is a key objective of this initiative

Dialogue is a tool where employees develop, along with their supervisors,

an individual development plan (IDP) to ensure the employee’s development along a chosen career path The tool is also used for employee performance management

Holcim Canada is a strong vertically integrated player Optimizing opportunities

in customer loyalty, sustainable development and product and service solutions will ensure full advantage of upcoming opportunities

SUSTAINABLE

DEVELOPMENT

Operating by the Triple Bottom

Line Providing the right products

& services for a balanced

approach to growth economically,

in our communities and

respecting the environment

STAKEHOLDER LOYALTY

Responding to stakeholder (customer, community, regulator) needs with products & services (ready-mix designs, rapid bridge replacement) and changing procurement practices (PPP)

HOLCIM SOLUTIONS

Moving forward on innovative solutions (products / services) that fulfill our commitment to Sustainable Development and enhance our Customer Relationships

SUSTAINABLE

DEVELOPMENT

Capturing opportunities for

developing a sustainable

competitive advantage, improving

relationships with stakeholders

and capturing cost savings

through efficiency gains

VERTICAL INTEGRATION

Utilizing a city-based strategy to optimize material flow through channels to market, primarily in core Toronto and Montreal

markets

EMPLOYEE DEVELOPMENT

Continue to develop employees for the needs of the future with increasingly challenging opportunities (PPPs) as well as opportunities for development

abroad

Holcim Canada’s Commitment to it’s Community & Markets

Holcim Canada’s Strategic Positioning in Holcim Group

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.

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