results 2009 and outlook for 2010 presentation of march 3 2010 markus akermann ceotheophil hschlatter cfo holcim ltd

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Results 2009 and outlook for 2010

Phu My Bridge, Vietnam

Presentation of March 3, 2010

Markus Akermann, CEO

Theophil H Schlatter, CFO

The spoken word prevails.

Challenging economic environment

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Decreasing demand for building materials in Europe and

North America

Growing or stable demand for building materials in most

quarter of 2009

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Results 2009

1) In economic terms, 2009 will be remembered as a year of crisis The construction industry

ecially

recession in Eastern and Southeastern Europe, as well as Russia Asia developed comparably

well, as did much of Latin America and Africa Led by India, many of the countries in questionremained on a growth path This proved beneficial for Holcim, as the Group has a strong emerging

markets presence like no other international producer of building materials In the fourth quarter,

the situation on the construction markets did not change fundamentally compared to the rest

of the

year Positive market developments have still been counterbalanced by developments in theopposite direction

Holcim reacts swiftly and increases its efficiency

second half of the year

Cement capacity scaled back by more than 10 million t

closed

Strategic capacity expansion program continued

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2) The goal of streamlining processes and structures as well as lowering fixed costs by at lea

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as socially responsible as possible A highly cautious approach was taken toward investment

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consolidated since October 2009 This means Holcim can now offer not only cement but alsoaggregates, ready-mix concrete and concrete elements in a strategically important market

Strong liquidity, lower net debt

Beginning of 2009, high priority was given to securing

liquidity

Capital market transactions strengthened balance sheet

Unchanged dividend payout ratio; proposed cash dividend

Executive Committee to be enlarged

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debts Encouragingly, cash flow from operating activities showed an above-average

increase

This

propose to the Annual General Meeting that one-third of the net income attributable to

shareholders of Holcim Ltd should be distributed to the company's shareholders This will result in

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a cash dividend of Swiss francs 1.50 per registered share The shareholders will also be consulted

on the Board of Directors' compensation report The Board of Directors proposes to the Annual

General Meeting that Beat Hess, Legal Director and member of the Executive Committee of Royal

Dutch Shell in Den Haag, be elected to replace H Onno Ruding, who is stepping down from the

Board of Directors As Holcim announced today, the Executive Committee will be enlarged Roland

Köhler, Corporate Functional Manager and responsible for Corporate Strategy & Risk

Management, will take over responsibility for the central service and support functions as new

member of the Executive Committee as from March 15, 2010 The bundling of these Group staff

activities fosters interdisciplinary teamwork, should optimally support the Group companies i

n their

activities along the value chain, and improve the allocation of resources

Difficult economic situation in Europe

Decreasing construction activity in the eurozone, but solid

order book in Switzerland

Aggravated market conditions in Spain, the UK, Italy,

Eastern Europe and Russia

Capacity adjustments and extensive cost-cutting programs

eased the pressure on the income statement

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4) In 2009, the recession has put pressure on the European construction industry Additionall

plant in Spain was permanently closed Holcim Hungary mothballed a kiln line at its Lábatlan site,

3

Shurovo cement plant in Russia, no grey cement is to be produced until the commissioning of the

new production line In Spain in particular, the network of ready-mix concrete plants was alsostreamlined including the closing of quarries Consolidated sales volumes in Group region Europe

ic

income statement during the course of the year Holcim Switzerland was the only Group company

to post an improved result

North America hit by the crisis

impact

Situation in Canada slightly better

Declining sales volumes in all segments

Market environment adversely impacted results

of Holcim US

Slightly higher operating margins

5

5) Compared with its 2008 level, private residential construction activity in the US again fell by

situation in Canada was slightly better Holcim US saw a significant decline in deliveries,

aggravated by a severe winter at the beginning of 2009, followed by unfavorable weatherconditions in spring, and repeated floods Holcim Canada experienced a slump in cement exports

from its Mississauga plant In Ontario, weak residential construction and project cancellations in

the commercial and industrial sectors affected sales volumes Aggregate Industries US

experienced a sales decline in all segments However, government road building programssupported sales of asphalt in the second half of 2009 Holcim US decommissioned two plants and

in the first quarter of the year, two additional cement plants were mothballed Aggregate Industries

US and Holcim Canada also temporarily closed various aggregates operations and ready-mix

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concrete plants The difficult market environment impacted on the results of Holcim US in

Resilient Latin America

Declining construction activity in Mexico and Central

America

Only moderate sales declines on a like-for-like basis

Results improved especially in Ecuador, Brazil and

Argentina

Organic growth in operating EBITDA

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6) Most Latin American economies fared relatively well in the crisis Exceptions included Mexico

and some Central American countries The strong interdependence with the US significantly

sales across its entire product range At Holcim Colombia, cement deliveries fell However,volumes of aggregates and ready-mix concrete increased The Brazilian Group companyconcentrated on high-margin contracts Volumes of ready-mix concrete matched the

Solid business activity in Africa Middle East

Sales volumes remained on high levels

the Lebanon

Decrease in cement deliveries in the Indian Ocean region

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7) In Morocco, private house construction remained the key driver of the whole construction sector

The Lebanese construction industry also benefited from robust demand Holcim Morocco achieved

higher sales volumes in all segments Holcim Lebanon sold almost all of its production volum

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start of major construction projects in Mauritius partially countered this negative development.

Operating EBITDA rose, and also the operating margin developed positively Morocco und the

Lebanon were the main contributors to the organic growth

Growing demand in Asia Pacific

Above-average increase of operating EBITDA

Philippines and Indonesia

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8) Group region Asia Pacific was affected by the crisis, but only in certain countries In India,uninterrupted consumption, a healthy financial sector and extensive government investmentsupported the construction industry The two Indian Group companies ACC and Ambuja Cements

enjoyed good capacity utilization and sold more cement New production capacity of 4.2 million

significantly higher deliveries of cement and ready-mix concrete Siam City Cement in

ensured rising cement exports Cement Australia sold less cement due to the less dynamic market

,

9) First let us review the key financial figures Sales volumes of cement declined by 8 percent

Key financial figures – Full year 2009

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compared to the previous year Aggregates and ready-mix volumes declined by roughly 14 percent

each Net sales totaled 21.1 billion Swiss francs, 16 percent down from the previous year.Operating EBITDA shrank by 13 percent to 4.6 billion Swiss francs and operating profit stood

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10) In the fourth quarter, the rate of reduction in sales volume reflected the ongoing marketdifficulties and the early winter in parts of the northern hemisphere The US, Spain, Russia and

parts of Eastern Europe continued to be a drag on overall volumes despite the fact, that most of

these countries were already hit by the crises in the second half of 2008 However, the continued

growth in Asia and parts of Latin America was partly compensating the declines in the mature

markets This is evidence of the sound geographical diversification Holcim has achieved ove

emission allowances in the amount of 29 million Swiss francs In comparison, we had 34 million

Swiss francs in proceeds in the fourth quarter of 2008 Adjusting also for the provisioning of the

plant closures and restructuring costs, the operating EBITDA reduction of only 3 percent testifies

that the still ongoing volume decline was mitigated to a large extent by the cost reductions In Q4

Key financial figures – Q4 2009

Major changes in the scope of consolidation

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⊗ 2008/2009 LFL Change in

structure Total

Aggregates – Sales volumes by region

average exchange rates in CHF 2007

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0.8% -152 -3.9% -81 -4.6%

Cash flow from operating activities 53 1.2% -369 -6.9% -322 -8.6%

Net sales by region

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18) Net sales totaled 21 billion Swiss francs in 2009, a decline of 16 percent As mentioned, the

impact of foreign exchange movements had a substantial negative impact of 7 percent The like-

for-like variances reflect more or less the volume declines in Europe and North America and the

relative stable pricing environment with the exception of Russia, Azerbaijan and Spain where we

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Net sales by region

Net sales 2009

Europe 33.6%

North America

16.0%

Asia Pacific 29.5%

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francs (2008: 34) I would like to highlight that the operating EBITDA margin of 22 percent is an

improvement over last year of approximately 1 percentage point in the face of significant volume

declines In the fix cost intensive environment of our industry this would have led to a major margin

decline had we not timely and rigorously adjusted capacities and slashed costs throughout the

operation Our energy costs also declined although the reduction of 1.40 Swiss francs per tonnes

of cement produced did not meet our expectations

Operating EBITDA by region

125 6

reported a like-for-like increase of 11 percent despite the difficult economic environment in Mexico

percent Price increases in Morocco combined with cost reductions significantly contributed t

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group companies as well as Indonesia and the Philippines were the largest contributors to growth

as a result of the combination of increased prices, higher volumes and lower fixed and energy

costs The region also benefitted from the consolidation of the newly acquired Australian business

as of Q4 but was negatively impacted by currency Total operating EBITDA growth for the region

was 18 percent bringing operating EBITDA to 1.8 billion Swiss francs

1341 1021

2008 2009

1301

100 1

966 879 ⊗ 2008/2009 LFL Change in Currency Total

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Net income - shareholders of Holcim Ltd

1

2008 2009

1 IncludesacapitalgainonthesaleofastakeinHolcimSouthAfricaofCHF1,110millionandaspecialdividendofCHF150million,net 24

24) Below operating profit, other income increased to 206 million Swiss francs mainly due to capital

gains on the sale of various assets in the amount of 120 million Swiss francs and the partialrelease of the German antitrust provision of 85 million Swiss francs The contribution of associated

companies increased by one third to 302 million Swiss francs and financial expenses net remained

flat After a tax charge of 24 percent, Group net income decreased by 268 million Swiss franc

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25) Contrary to the business activities, cash flow from operating activities increased 5 percen

Net investments to maintain productive

were, apart from some exceptions, maintained according to the capacity expansion program which

is coming closer to the completion phase Net financial investments amounted to 2.3 billion Swiss

francs primarily due to the acquisition of Holcim Australia In 2009 some significant expansion

investments were completed as the 4 million tonnes Ste Genevieve plant in the US and 4.2 million

tonnes of cement capacity in India Continuing investment in clinker and grinding capacity take

place in India, Russia, Azerbaijan and Mexico The full year guidance for 2010 regardingmaintenance and expansion investments is 500 million Swiss francs net and 1.5 billion Swissfrancs, respectively

Financial position

Million CHF 58.7%

21,945 Cash flow statement

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Netfinancialdebt Totalshareholders' equity Gearing

83.7%

62.8%

22,044 17,974

debt declined by 1.2 billion to 13.8 billion Swiss francs due to the successful cash flow

management, lower capex and the prudent equity-financed acquisitions As a result, gearing

decreased to 63 percent as of year end December 31st The key debt ratios remained practic

ally

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Loans Loans Capitalmarkets Capital markets

Loans Capitalmarkets

Financial debt, maturities and liquidity as of December 31, 2009

Maturity profile (CHF million) 1

Liquidity summary Current financial liabilities 1 : CHF 3.3 billion Liquidity II 2 : CHF 4.5 billion Liquidity III 3 : CHF 9.9 billion Debt summary Fixed to floating ratio: 51% fixed Capital markets 65%; Loans 35%

<1y 2y 3y 4y 5y 6y 7y 8y 9y 10y >10y

Corporate vs subsidiary debt: 78% corporate

Ø total maturity: 4.5 years

CP borrowings: no outstanding amounts

No financial covenants at corporate level

28) To ensure adequate liquidity, Holcim holds as of December 31st, cash and marketable

securities of 4.5 billion Swiss francs and unused committed credit lines of 5.4 billion Swiss fr

ancs

31.12.2007 31.12.2008 31.12.2009

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5,000 4,000 3,000 2,000 1,000 ,0

,0 1,000 2,000 3,000 4,000 5,000

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Committed credit lines at corporate level do not include any financial covenants The weighted

average rate interest rate for 2009 was 4.3 percent and the average maturity was extended t

Outlook 2010 per Group region

North America: no rapid recovery on the

Asia Pacific: markets will continue to grow

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29) Within Europe, the construction sector is unlikely to make significant progress in the UK, Spain

to be

in the making At present it is difficult to assess the speed with which it will impact demand forconstruction materials The programs to cut costs and adjust capacity will be systematicallypursued Despite the brighter economic situation, the North American construction industry is not

expected to enjoy a rapid recovery In the US, private construction activity is likely to remainsubdued The US government's stimulus program promises to provide some help for infrastructure

construction in the second half of the year In Canada, a rather positive trend is expected for the

economy as a whole Building activity will remain largely solid in Latin America Mexico and the

Central American countries are expected to develop slightly better Thanks to the robust state of

the domestic economy, Brazil will see further growth In Ecuador, Colombia and Argentina, Holcim

expects the market situation to be stable A stable economic environment and sales volumes are to

be expected in Group region Africa Middle East, particularly in Lebanon and Morocco In overall

terms, this Group region is once again expected to deliver sound operating results Population

in

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