region north america benoit h koch executive committee north america st louis september 14 2010 holcim ltd

Executive Summary Region North America economic terms and for Holcim due to its sheer size and growth prospects • Holcim has over many years invested in a flexible and efficient asset ba

Region North America

Benoît-H Koch – Executive Committee North America

St Louis, September 14, 2010

Executive Summary Region North America

economic terms and for Holcim due to its sheer size and growth

prospects

• Holcim has over many years invested in a flexible and efficient

asset base that will allow it to capitalize on the recovery

before, during and after the recession

different markets across Canada and the US allowing for integrated solution offerings where needed

optimizing organizational structures, shared service centers and tax efficient structures

Agenda

1 The importance of North America

2 Our North American portfolio and

major recent acquisitions

3 How we are reaping the benefits of these acquisitions

The US remains the country with the largest economy – its GDP is

higher than Japan, China and Germany combined

GDPs of US States vs Nations Worldwide [base year 2007]

2009 GDP Comparison [bn USD]

Source: World Bank and IMF

14’256

5’068 3’347

Increase of North American Population by +10% from 2010 to 2020

Forecasted Population Growth 2010-2015 [CAGR]

Source: UNData - United Nations Data Retrieval System (Medium Variant)

US Cement Demand Forecasts [M t cem]

Despite a notably lower Summer Forecast, PCA is still predicting a

steady recovery of cement demand over the next 5 years

80

71

2008 2007

PCA 2010 Spring FC PCA 2009 Fall FC PCA 2009 Summer FC

PCA 2010 Summer FC

Source: Portland Cement Association (PCA)

North America is crucial to Holcim’s geographic diversification

strategy – this is true for the cement segment…

Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010

Cumulated population

growth 2010 - 2014E

Demand growth

Eastern Europe 24.3 Mt

Africa Middle East 27.2 Mt

North America 20.6 Mt

India 50.7 Mt

China 51.0 Mt

Asia Pacific excl

India, Australia, China

46.9 Mt

Latin America 34.2 Mt

Australia 4.5 Mt

Mature markets Emerging markets

Size of circles represents influenced capacity 2009

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

… as well as for the Aggregates segment, where the developed

countries have a higher weight

Western Europe

70.0 Mt

North America 40.2 Mt

1 including 3 months Australia

Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010

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

North America 40.2 Mt

Asia 10.4 Mt 1

Eastern Europe 8.4 Mt

Mature markets Emerging markets

Size of circles represents consolidated sales volume 2009

Latin America 11.8 Mt

Demand growth

Agenda

1 The importance of North America

2 Our North American portfolio and

major recent acquisitions

3 How we are reaping the benefits of these acquisitions

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Ste Genevieve

Recently inaugurated Ste Genevieve plant can serve most of the markets along the Mississippi in a cost effective way

Holcim has continuously developed its positions in North America since its first cement investments in the 1950s

1958 - First US venture:

Dundee Cement Company

1953 – First foothold in NA:

St Lawrence Cement in Canada

1978 – Acquisition of Santee

Portland Cement Comp

1990 – Acquisition of Northwestern States Portland

Cement Corp and United Cement Comp.

1986 – Acquisition of Ideal Basic

2007 – Long Term Supply Contract with

& Minority stake in Lattimore Materials

Mid 90ies – Various larger upgrade &

improvements of existing facilities

Other: 1 Concrete Paving Plant Hardaway Concrete (2007):

RMX: 10 Plants, 2 mobile plants

Other: 43 Asphalt Plants

Lattimore Minority Stake

& Long Term Supply Contract (2007):

RMX: 21 Plants Agg: 6 Operations

Holcim’s main Acquisition in N.A in the last 5 years

* Current status of permitted reserves

Agenda

1 The importance of North America

2 Our North American portfolio and

major recent acquisitions

3 How we are reaping the benefits of these acquisitions

Concrete Products Direct Sales

Civil Engineering

Channels

Transformational

Masons Self - builders

Transactional

Mortars

Ready -mix Concrete

Asphalt

Concrete Products Direct Sales

Civil Engineering

Channels

Transformational

Masons Self - builders

Demand

A p p

l i c a

t i o n s

Applications and Construction Fields

Infrastructure

Commercial / Industrial Building Housing

Demand

A p p

l i c a

t i o n s

Applications and Construction Fields Holcim Value Chain

An experienced and crisis-proven North American Management team ensures that we deliver on our promise

Bernard Terver – Area Manager US & CEO Holcim US

Former positions: - Area Manager Andes Nations, Central America & Caribbean

- CEO Holcim Colombia

Will Glusac – CEO Aggregate Industries US

Former Positions: - President Prairie Material

- President Florida Materials Division, Rinker Materials

Paul Ostrander – CEO Holcim Canada

Former Positions: - Senior Vice President Ontario Division, Holcim Canada

- General Manager Dufferin Construction

in US

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

• Area Manager and his staff coordinate the companies and ensures that back office synergies are being used

• Possibility to capture synergies from tailored service integration

• Coordination and arbitrage by Area Manager and his staff

Comments

CEO Aggregate Industries US

W Glusac

Midwest Region Nort East Region

EXCO Member

B-H Koch

Area Manager US

B Terver

In Canada on the other hand, industry structure and geographic

concentration of operations require a single integrated company

Structure

• Market & HCA (Holcim Canada) operations geographically more concentrated in Canada than in the US

• Higher degree of vertical integration than in the US

• Higher degree of consolidation on all product levels than in the US

• Regional structure under one VP allows the optimization of vertical integration strategy

Comments

VP Ontario & Western Region

VP Quebec & Atlantic Region

EXCO Member

B-H Koch

CEO HOLCIM Canada

P Ostrander

Aggregates has proved to be more resilient to the downturn than the cement business

Factors contributing to a higher crisis resilience of Aggregates compared to Cement:

• More flexible cost structure

• Shorter reaction time

• Benefitting more from stimulus road & highway projects

Holcim US

Through the buyout of SLC* minorities, Holcim was able to realize

sustainable synergies of USD 24M p.a

* Former company name: St Lawrence Cement (SLC)

An increasing number of support processes of our North American

(NA) organizations have been standardized and centralized

Pooling of NA shared services resulted so far in cost reductions of USD 13.3M p.a., and the full potential hasn’t been reached yet

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

AIUS

HUS HCA

Accounting

HUS HCA AIUS

IT Service Centre

HUS HCA AIUS

Treasury

HUS HCA AIUS

Procurement

HUS HCA AIUS

Risk Management

HUS HCA AIUS

Payroll

HUS HCA AIUS

Tax

Merger of Service Centres Across Operating Companies

HCA = Holcim Canada AIUS = Aggregates Industries US (acquired in 2005)

Outlook

level of flexibility to deal with any market situation

current low cost levels

to result in above average returns

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.