third quarter results 2011 and outlook presentation of november 9 2011 holcim ltd switzerland the spoken word prevails

Holcim at a glance Better results in third quarter and organic growth  Higher sales volumes in cement, aggregates and ready-mix concrete over nine months and in the third quarter  Lat

Third quarter results 2011 and outlook

New Shurovo plant (Russia)

©2011 Holcim Ltd/Switzerland

Markus Akermann, CEO

Thomas Aebischer, CFO

The spoken word prevails.

Holcim at a glance

 Better results in third quarter and organic growth

 Higher sales volumes in cement, aggregates and ready-mix

concrete over nine months and in the third quarter

 Latin America and Asia Pacific on growth path

 Europe and North America lack key stimuli

 Strong Swiss franc impacts operating EBITDA by

CHF 458 million

 Declining operating EBITDA due to cost increases which

could not yet be passed on completely to sales prices

 Like-for-like operating EBITDA is expected to be close to

last year's level

1

Higher sales of cement and aggregates in Europe

ready-mix concrete nearly matched the previous year's level

Switzerland and Russia, as well as some parts of Eastern

Europe

deconsolidations and closures of ready-mix concrete plants

2

2) In Group region Europe, demand increased However, there was still a lack of concrete intensive projects

More construction work was ongoing in France, Germany, Switzerland and Russia, primarily in the Greater

Moscow area In Group region Europe, Holcim sold more cement and aggregates in the first nine months of

2011, despite the difficult market situation in Spain Ready-mix concrete deliveries nearly matched theprevious year's level Aggregate Industries UK experienced a decrease in asphalt volumes The market

situation remained difficult in Italy and Spain In Italy there were deconsolidations in the aggregates and

ready-mix concrete business, while in Spain our Group company decided to close 25 ready-mix concrete

plants In Eastern and Southeastern Europe a few infrastructure projects made a positive impact on demand

Most Group companies increased their shipments of cement About a week ago we have increased our

minority stake in a company in Eastern Slovakia, which owns a cement plant and several aggregates and

ready-mix concrete operations, into a majority This complements our network in this region

road-building

sales of aggregates and ready-mix concrete

relevant markets

amid relatively stable prices and expenses incurred by

temporary closure of the Catskill plant

Lattimore Materials in March of this year strengthened the Group company's market presence in Texa

EBITDA for Group region North America fell All three Group companies were below the previous year's

results Higher energy and distribution costs had a negative impact on the operating result of Holcim US

despite the relatively stable level of prices in local currency Expenses were also incurred for the temporary

closure of the Catskill plant Due to increased production costs Aggregate Industries US recorded lower

results At Holcim Canada, rising price pressure, particularly in the ready-mix concrete business, and higher

cement manufacturing costs had a negative impact on financial results

Solid markets in Latin America

Argentina, Chile and Colombia

ready-mix concrete was also up significantly

distribution costs and the fact that prices could not yet be

fully adjusted, as well as strong Swiss franc

primarily in the third quarter

4

4) In Latin America, the economy made positive headway in most countries Numerous infrastructureprojects supported demand for building materials All Group companies sold more cement and nearly all also

increased their sales of aggregates and ready-mix concrete The Mexican construction sector

Unchanged business situation in Africa Middle East

parts of the Indian Ocean region

Holcim Morocco

Lebanon sold more cement and ready-mix concrete

impact, but was clearly positive in the third quarter

5

5) In Morocco and Lebanon, the two most important markets for Holcim in this Group region, construction

activity remained brisk Construction activity was also fairly buoyant in the Indian Ocean region Due t

the currency impact However, organic growth was achieved in the third quarter

Continuing volume growth in Asia Pacific

and of aggregates due to Holcim Australia

Singapore, Indonesia and at Holcim Australia

growth of Group region

6

6) The Asian markets remained on their path Public spending on infrastructure was important, but private

residential and commercial construction activity also developed very positively In Oceania, construction

activity failed to gain real momentum Due to additional capacity, ACC in India achieved a significantincrease in cement volumes Ambuja Cements also increased its deliveries Siam City Cement in Thailand

saw a rise in sales in all segments in the growing domestic market, while in Indonesia the construction sector

remained on track for dynamic growth due to government infrastructure projects and expansion work i

n the

industrial sector Across its whole product range, Holcim Indonesia sold significantly more building materials

The Philippine construction sector felt the lack of public sector investment activity The situation nevertheless

improved slightly from August onward Construction activity in Oceania remained subdued In Australia,

there was a lack of cement and concrete intensive projects Road-building in the aftermath of the floods

impacted positively on cement demand only from the third quarter On balance, Cement Australia therefore

sold less cement Holcim Australia delivered more aggregates on both the east and west coasts Operating

EBITDA in Group region Asia Pacific decreased Stronger results were achieved above all by the Group

companies in Thailand, Vietnam, Malaysia, Singapore and Indonesia Like-for-like, ACC exceeded itsprevious year result However, it proved impossible to pass on the full impact of inflation to prices Cement

Australia incurred one-off costs for the closure of the Kandos plant The strong Swiss franc depressed the

results of all Group companies, and reduced operating EBITDA Like-for-like, ACC – the biggest Group

company – exceeded its previous year result The Group region also grew in organic terms

4

Fund to promote energy efficiency

energy efficiency set up in 2010







Heat recovery for electricity production

Alternative fuels for replacement of traditional heat sources

Wind power for electricity production

percent per year over the last five years In addition, CO2 emissions occcur – 60 percent of which arecaused by the chemical conversion of stone in the rotary kiln and 40 percent by the use of fossil fuels.Because the European cement industry currently emits less CO2 than it is entitled to, large sums of money

are raised each year from the sale of excess emissions certificates The reasons are well-known: sluggish

European growth, but also the industry's ongoing endeavors to boost the energy efficiency of its plant

However, we decided to allocate these sums to an Energy Fund that we launched in 2010 The Fund should

help ensure the realization of innovative projects across the Group in the field of heat recovery, the utilization

of alternative fuels and raw materials, as well as wind power and hydroelectricity The objective is clear: to

save fossil fuel sources and boost energy efficiency, resulting in an improvement in our environmentalfootprint and a reduction in production costs; this is particularly important against the backdrop of rising

global energy costs The Energy Fund is an element in the Group's comprehensive strategy for countering

these cost pressures Holcim has produced a list of criteria for the assessment of projects to be financed

The emphasis is on economic efficiency – as investments need to be amortized within around third of

one-their lifetime – but also on the potential to reduce CO2 and the possibility of multiplying innovations speedily

and successfully across the Group The creation of the Fund led to competition between the Groupcompanies to produce the best project proposals, and sparked a whole series of new approaches forsustainable energy projects

CO 2 reduction:

400tonnesp.a.

Héming(France) Alternativefuels

CO 2 reduction:

10,200tonnesp.a.

Rabriyawas(India) Waste heatrecover y

CO 2 reduction:

11,300tonnesp.a.

HonChong(Vietnam) Waste heatrecovery

CO 2 reduction:

25,900tonnesp.a.

Gagal(India) Waste heatrecovery

these units will produce a cumulative 36 megawatts o

f electricity – equivalent to the electricity needs of a

very large cement plant All in all, Holcim will save around 200,000 tonnes of CO2 annually as a resul

or around 44 gigawatt hours on a net basis every year; this represents 12 to 14 percent of the Gagal plant's

annual energy consumption The investment amounts to nearly USD 17 million Another innovative project

for the more efficient use of alternative fuels and raw materials is being undertaken by Holcim Germa

ny at its

cement plant in Lägerdorf The project – being carried out in cooperation with Polysius, a subsidiary ofThyssen Krupp – is at a very advanced stage The plan is for a multi-stage combustion chamber at the kiln

entrance, which – unlike conventional chambers – is able to utilize poorly combustible and bulky alternative

fuels Work on the new plant is scheduled for completion in 2013 Due to the higher proportion of alternative

fuels and raw materials in the Lägerdorf facility's energy mix, around 38 000 tonnes of CO2 should be saved

annually once it is commissioned

10) Sales volume increased in all product segments Group net sales decreased by 6.7 percent to 15.5

billion Swiss francs while operating EBITDA declined by 16.9 percent to just below 3 billion Swiss francs,

reflecting the strong appreciation of the Swiss franc and rising input costs Net income declined by 18.5

percent to 713 million Swiss francs as a result of the decrease in operating profit

in the Group Region Europe were strong contributors to the overall volume increase

Aggregates – Sales volumes by region

Sales volumes

Key financial figures

1.7

Total Group 9M 2009 103.2 9M 2010 118.8 9M 2011 130.4

22.3 19.6

3.1 8.9

9.0

10.9 ∆ 9M10/9M11 LFL Change in

structur e

America, Australia and Europe contributed to an overall like-for-like volume increase of 5.1 percent

Ready-mix concrete and asphalt – Sales volumes by region

13.0 12.4 12.2 9M 2009 30.4

7.7 8.2

Asian Basket (AUD, IDR, INR, THB, PHP) 1 0.93 1.00 0.89 -11.0%

Statement of financial position

+/-3.4 3.5

1 7 9 - 3.

-1

%

-32 -2.2%

228 -4.3%

42 -4.1% -73

-14.2% -14.7%

-435 -9.2%

-916 -854-14.9% -15.1%

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

15

15) The strong appreciation of the Swiss franc during the first half of 2011 continued to negatively impact the

financial results during the quarter under review, albeit to a lesser extent than during the second quarter

Sales were reduced by some 854 million Swiss francs and operating EBITDA recorded a negative impact of

181 million Swiss francs During the first nine months of 2011 sales were reduced by some 2.2 billion Swiss

francs, or minus 13.3 percent and operating EBITDA recorded a reduction of 458 million Swiss francs, or

16) Total consolidated net sales amounted to 15.5 billion Swiss francs, a decrease of 6.7 percent Excluding

13

-203

the negative impact from currency movements and changes in scope of consolidation, like-for-like net sales

increased by 5.8 percent This reflects the improvement in volume across all segments and prices in many

5664 51 36

13.5%

Latin A merica

Asia Pacific 37.2%

Africa Middle East 4.4%

clearly impacted by the previously mentioned appreciation of the Swiss franc, it also reflects the underlying

regional developments with both Asia Pacific and Latin America posting double-digit like-for-like growth rates

compared to the other regions that witnessed either low growth or even slight negative developments

19) Operating EBITDA decreased by 16.9 percent to just below 3 billion Swiss francs Excluding thecurrency impact and change in structure, the operating EBITDA declined by 4.4 percent Higher variable and

fixed costs more than offset the improved volumes and prices, resulting in the lower operating EBITDA

Adding to this decline are the still outstanding sales of CO2 emission certificates Proceeds from the sales of

emission allowances amounted to only 11 million Swiss francs compared to 75 million Swiss francs in the

first nine months of the previous year Accordingly the operating EBITDA margin declined from 21.6 percent

to 19.2 percent On a like-for-like basis, thus excluding the currency impact and change in structure, the

margin was at 19.5 percent

9M 2009 9M 2010 9M 2011

328

81 8

North America, operating EBITDA decreased by 28.0 percent In Holcim US, prices stabilized at a low level

and together with rising third party transportation costs increased pressure on profitability The price increase

recorded in Aggregate Industries US were more than offset by increasing variable costs On a like

like-for-basis the operating EBITDA decreased by 17.1 percent In Group region Latin America, operating EBITDA

declined by 13.1 percent with negative currency movements adding some 14.7 percent to this development

While Colombia, Argentina, El Salvador, Mexico, and Chile positively contributed to the result, CostRica/Nicaragua, Ecuador, and Brazil weighed negatively on the region‘s performance with a like-for-like

growth of 1.6 percent Operating EBITDA in Group region Africa Middle East contracted by 17.0 percent,

impacted by decreasing volumes in Morocco Excluding the negative currency impact of 13.3 percent, the

operating EBITDA declined by 3.7 percent The Group region Asia Pacific decreased by 12.2 percent with

currencies adding a negative 13.3 percent to this decline While Holcim Indonesia, Siam City CementThailand, Holcim Australia, Holcim Singapore and ACC India strongly contributed to the performance,Cement Australia and Group Holcim Philippines weighed negatively on the result due to decreased volumes,

increased costs and the one-time closure cost of the Kandos plant in Australia in the amount of 21 million

Swiss francs However, on a like-for-like basis, the region grew by 1.1 percent

Operating profit

Margin Million CHF

23) Below operating EBITDA, the decrease in operating profit was partially offset by the deferred cash

non-tax charge of 182 million Swiss francs in the previous year related to the transfer of the investment in Holcim

Canada from Holcim US to Holcim Ltd Group net income declined to 1 billion Swiss francs and net income

attributable to shareholders of Holcim Ltd amounted to 713 million Swiss francs, reflecting a decline o

f 17.9

percent and 18.5 percent respectively

Cash flow from operating activities

6.0%

2,192 2,053

930 Like-for-Like (LFL) 783 47.2% -279 -12.7% -968 -47.1%

24) Cash flow from operating activities contracted by 54.7 percent to 930 million Swiss francs Excludi

ng the

negative currency impacts and change in structure, the decline amounted to 47.1 percent or 968 milli

Swiss francs In addition to the lower operating EBITD

increased volumes and higher income taxes paid were the main drivers of this decline These factors were

only partially offset by lower financial expenses

11

Net investments to maintain productive

capacity and to secure competitiveness

25) Net investments to maintain productive capacity and to secure competitiveness amounted to 427 million

Swiss francs, while expansion investments declined from 860 million Swiss francs to 583 million Swissfrancs Expansion projects include investments in India, Indonesia, Russia, Australia and Azerbaijan The

cash inflow from net financial investments decreased considerably year-on-year and accounted to 54 million

Swiss francs Overall, a cash need of 729 million Swiss francs was created during the first nine month

26

Loans

Capitalmarkets

Loans Capitalmarkets

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Cash flow statement