we benefit from our global presence third quarter interim report 2002 holcim ltd

CEO Konzernabschluss 3 Million CHF Notes Jan–Sept 2002 Unaudited Jan–Sept 2001 Unaudited 2002 Unaudited July–Sept 2001 Unaudited... 3 Segment InformationAmerica Latin America Africa Asia

We benefit from our global presence.

“Our efficiency enhancement programs ensure

further progress at operating level.”

Intermsofvolume,Holcimpostedincreasesacrossallsectors,whilewitnessingthemostrobustgrowthinthe

cementsegment,theGroup’scorebusiness.Operatingresultswerealsobetter.Worthyofparticularmention

arethesignificantlyimprovedresultsgeneratedbyHolcim intheUSAandMexico.Consolidatedoperating

profitforninemonthswas CHF1,559million(ninemonths2001:1,553).Thisdevelopmenti

sespeciallysignificant

giventhattheexchangerateoftheUSdollar(-6.5percent) andanumberofLatin

AmericanandAsian

currenciescontinuedtoweakenagainst theSwissfranc.Inlocalcurrencies,operatingprofi

AnumberofWestern Europeaneconomiessloweddownsignificantlyover thepastfewmonths.Inthis difficult

environment,HolcimGroupcompaniesinEuropeachieved generallysolidfinancialresult

increasedoperatingprofitby6.5percent toCHF456million (ninemonths2001:428)

otherhand,theaggregatesandready-mixconcretesegmentssawsalesvolumes

improve.GroupregionNorth

Americageneratedan operatingprofitofCHF222million (ninemonths2001:234)despit

ecapacitybottlenecks

InLatinAmerica,theeconomicclimateremainsdifficult.VolumesintheGroupregionarenonetheless

generallystable.Constructionactivityissteadilysolid,asaresaleslevels atGroupcompaniesinMexico,

Central AmericaandtheCaribbean.SoundorderbooksinEcuador’sconstructionindustryhelpedLaCemento

Nacionaltoincreasedeliveriesinallsegments.Similarly,ordervolumesremainedhealthyinChile’sconstruction

sector.However,Brazil’sprivatesectorwassomewhatreluctant toinvestduring therunuptotheelections

Argentina’sbuildingrecessionappearstohavebottomedout.GroupregionLatinAmerica maintainedcement

andclinkersalesaswell asdeliveriesofaggregatesandready-mix concrete

onaparwith thepreviousyear

DespiteweakergrowthandstrongcurrencydevaluationtrendsinArgentin

a,VenezuelaandBrazil,financial

resultsagain reachedanimpressive levelfollowingoperationalimprovements.GroupregionLatinAmerica

witnessedacurrency-induceddeclineinoperatingprofit toCHF603million(nine months2001:638)

Onthewhole,developmentsinthisregionwere positive.SalesofcementinEgypt,SouthAfricaandMorocco,

andalsoinLaRéunionandMadagascar,wereconsiderablyhigher thaninth

e sameperiodofthepreviousyear

Thankstorecentrestructuring,resultsat theGroup’sLebanesesubsidiaryweresatisfactory.Consolidated

cementdeliveriesfortheregionwerehigher,anddespatch ofaggregatesan

dready-mix concretealsorose

Resultsinthis regionwerepositive,overall.GroupcompaniesinLebanon,SouthAfricaandMoroccoreported

substantiallyimprovedfigures.OperatingprofitforGroupregionAfricaMiddleEastgrewby19.6percent to

CHF201million (ninemonths2001:168)

2Shareholders’ Letter

Theeconomicenvironment inmostofthemarketsinwhichHolcimoperatescontinuedt

cameunderpressure.However,the twoPhilippinesGroupcompanieswereabletoexpan

dtheir cementsales

InThailand,ourGroupcompanycontinuedonitssuccessfulpath,andHolcimMalaysiaal

somanagedto

performwellinthelocalmarket.InIndonesia,PTSemenCibinonggenerated anoperatin

gprofitinthethird

quarterof2002.Businesswasverysatisfactory inAustralia,wherethe domesticsalesofQueenslandCement

rosestrongly.GroupregionAsiaPacificwitnessed strongsalesgrowthacrossall segment

s.Operatingprofit

totaledCHF120million (ninemonths2001:119).

Thankstoourglobalnetwork,whichgivesusapresenceinpracticallyeveryimportantmarket,weareableto

balanceout theeffectsofdemandvariationswithinindividualregionsoratGrouplevel,respectively.Inview

ofmarketweakness inseveral countriesandtheunfavorableexchangerateoftheSwiss franc,theBoardof

DirectorsandtheExecutiveCommitteeexpectthat,ontheassumption ofunchangedbusinessconditions

andexcludingexceptionalevents,consolidatednetsalesfor theyearwillfallslightly shor

toftheresultinthe

previousyear.Inviewofimprovementsinoperations,particularly inthe thirdquarter,theprospectsaregood

thatwecanalmostreachpreviousyear’soperatingprofit.Owingtotheexceptionalcharg

es,Groupnet income

willbelower thanin2001.ThankstorestructuringalreadycompletedinseveralGroupcompaniesandongoing

improvementsinefficiencyalongthewholevaluechain,ourcurrentassessment oftheoutlookfor2003is

positive.Accordingly,the BoardofDirectorsandtheExecutive CommitteeareconfidentabouttheGroup’s

prospectsin2003

Dr.WillyKissling MarkusAkermann

ChairmanoftheBoardofDirectorsa.i CEO

Konzernabschluss 3

Million CHF Notes Jan–Sept

2002 Unaudited

Jan–Sept 2001 Unaudited

2002 Unaudited

July–Sept 2001 Unaudited

4Consolidated Statement of Income

Consolidated Balance Sheet of Group Holcim

Unaudited

30.09.2001 Unaudited

31.12.2001 Audited

Total current assets 7,191 6,507 6,367

Total long-term assets 19,483 19,281 20,677

Total short-term liabilities 5,097 5,149 5,258

Total long-term liabilities 11,752 11,258 11,403 Total liabilities 16,849 16,407 16,661 Interests of minority shareholders 2,717 1,909 2,741

Total shareholders’ equity 7,108 7,472 7,642 Total liabilities and shareholders’ equity 26,674 25,788 27,044

Consolidated Balance

5

Statement of Changes in Consolidated Equity of Group Holcim

January–September

2002 Unaudited

2001 Unaudited

Currency translation adjustments (B3) (859) (243) Total reserves (B1+B2+B3) 6,706 7,070 Total shareholders’ equity (A+B1+B2+B3) 7,108 7,472

6Statement of Changes in Consolidated Equity

Consolidated Cash Flow Statement of Group Holcim

January–September

2002 Unaudited

2001 Unaudited

±%

Cash generated from operations 2,393 2,138 +11.9

Cash flow from operating activities (A) 1,732 1,447 +19.7

Cash flow from investing activities (B) (983) (2,386) +58.8

Cash flow from financing activities (C) 345 1,266 –72.7 Increase in cash and cash equivalents (A+B+C) 1,094 327

Cash and cash equivalents as at January 1 2,137 1,536

Cash and cash equivalents as at September 30 2,985 1,833

Consolidated Cash Flow

7

3 Segment Information

America

Latin America

Africa

Asia Pacific

Eliminations

Total Group

those used in the consolidated financial statem

ents for the

year ended December 31, 2001 (hereafter ‘annua

disclosure of contingent liabilities at the date of the interim

financial statements If in the future such estima tes and

assumptions, which are based on management’s best judg-

ment at the date of the interim financial statem ents, deviate

from the actual circumstances, the original esti mates and

assumptions will be modified as appropriate dur ing the period

in which the circumstances change.

There were no significant changes in accounting policies

or estimates or in any provisions or impairment charges

from those disclosed in the annual financial statements.

The following significant changes were made during the nine

months to September 30, 2002:

PT Semen Cibinong Tbk (Indonesia) was fully consolidated

from January 1, 2002 onwards It was accounted for as a

finan-cial investment at December 31, 2001 because control was not

effectively transferred to the Holcim Group at that date.

6 Additional Ordinary Income

January–September

As quarterly reporting was introduced from January 1, 2002 onwards no comparative information is available for the prior year figures.

As quarterly reporting was introduced from January 1, 2002 onwards no comparative information is available for the prior year figures.

exchange rates and the generally lower interest rate level.

currencies.

Notes to the Consolidated

9

10 Principal Exchange Rates

In the ordinary course of business, the Group is involved in

lawsuits, claims, investigations and proceedings, including

product liability, commercial, environmental and health and

safety matters No significant changes in the Group’s

contin-gent liabilities have occurred since the last annual financial

statements.

10 Notes to the Consolidated Financial Statements

Thesharesarelisted onSWXSwissExchang

e.Thebearershare

hassecurity codeNo.1221406andqualifiesf

orSwissmarket

indexSMIandis tradedonvirt-x.The

registeredshare has

securitynumber1221405andistraded onS

andeconomicperformance

Suchstatements maybesubjecttoanumbe

rofrisks,

uncer-taintiesandotherimportantfactors,suchas

butnotlimited

to(1)competitivepressures;(2)legislative a

ndregulatorydevelopments;(3)global,macro-economicandpoliticaltrends;

(4)fluctuationsincurrency exchangeratesandgeneralfinan-

(7)litigation;(8)adversepublicityandnewscoverage,which

couldcauseactual developmentandresults

todifferriallyfrom thestatementsmadeinthisdocument

mate-Holcimassumesnoobligationtoupdateoralterforward-

lookingstatementswhetherasaresultofne

winformation,futureeventsorotherwise

Financial Reporting Calendar

2002 annual results conference for press and analysts March

11

Zürcherstrasse156

CH-8645Jona/SwitzerlandPhone+41588588600

Fax+41588588609

info@holcim.com

www.holcim.com

CorporateCommunicationsRolandWalker

Phone+41588588710

Fax+41588588719

communications@holcim.comInvestorRelations

BernhardA.Fuchs

Phone+41588588787

Fax+41588588719

investor.relations@holcim.com

Holcim Ltd

Zürcherstrasse 156

CH-8645 Jona/Switzerland

Phone +41 58 858 86 00

Fax +41 58 858 86 09www.holcim.com