third quarter outlook for 2003 holcim

Cement capacity Group Europe: 39.9 m t; additionally with partners: 9.9 m t.2 Third quarter 2003 Europe 3 Third quarter 2003 Europe: the facts Acquisition of Cementos Hispania boosts Hol

Third quarter + outlook for 2003

Participation:

plant

Cement capacity Group (Europe): 39.9 m t; additionally with partners: 9.9 m t.

2

Third quarter 2003

Europe

3

Third quarter 2003

Europe: the facts

Acquisition of Cementos Hispania boosts Holcim Spain andunderpins financial results

Buoyant construction activity in Southern and SoutheastEurope brings higher sales volume in all three core seg-ments

Difficult sales situation in Germany and declining volume ofdemand in Switzerland adversely affect results

Operating profit for this Group region increases slightly due

to rising performance in Southern and Southeast Europe.Holcim to acquire Rohrbach Zement in first quarter 2004

Continued exploitation of synergies will impact positively

on our margins over the coming years.

Third quarter 2003

Positions in North America

Cement plant Grinding plant Terminal Cement plant project

Cement capacity Group (North America): 21.3 m t.

5

Third quarter 2003

North America

conti-nent

6

Third quarter 2003

North America: the facts

Efficiency-improvement program set in train by new ment is having a positive effect

manage-The Holly Hill plant successfully commissioned by Holcim US

at the end of June will contribute to lowering costs

The weak state of the US market adversely affected theresult of Holcim US

St Lawrence Cement benefited from the healthy order

situation in Canada, though it was unable to fully offset

demand-induced setbacks in the Northeast of the US

Together with the sharp fall in the value of the dollar, ating profit for North America was unsatisfactory in overallterms

oper-Programs to reduce costs accorded top priority.

Participation:

plant Grinding plant Terminal

Cement capacity Group (Latin America): 31.0 m t; additionally with partners: 9.9 m t.

8

Third quarter 2003

Latin America

economy

9

Third quarter 2003

Latin America: the facts

Pleasing sales figures for Mexico, the Caribbean and Chile.Marked increase in sales at Minetti in Argentina

Holcim Brazil holds up well in a market that is in need of afresh boost

Group:

plant Grinding plant Terminal

Participation:

plant plant Terminal

Increase in deliveries of cement and ready-mix concrete;fall in demand for aggregates.

Major progress on productivity in all areas

Sharp increase in regional operating profit in US dollarsdespite poorer operating situation in Venezuela

Latin America remains the Group’s strongest region in

terms of operating profit

Strong presence in key markets gives us optimism.

10

Third quarter 2003

Positions in Africa Middle East

Cement capacity Group (Africa Middle East): 12.9 m t; additionally with partners: 6.3 m t.

11

Third quarter 2003

Africa Middle East

12

Third quarter 2003

Africa Middle East: the facts

Significant increase in volumes in core segments of cementand ready-mix concrete; fall in the case of aggregates

Higher cement deliveries in Egypt, Madagascar, La Réunionand Morocco in particular

Regional uncertainties hit performance of group West Africa.Good results in South Africa and Morocco leading to higheroperating profit in this Group region

Holcim Lebanon acquiring grinding facility in northern

Cyprus

From a Group perspective, this region has

gained further significance

Cement capacity Group (Asia Pacific): 36.0 m t;

additionally with partners: 14.6 m t.

14

Third quarter 2003

Asia Pacific

Indonesia

15

Third quarter 2003

Asia Pacific: the facts

Slightly higher cement sales in the Philippines almost

entirely due to consolidation changes

Successful integration of PT Semen Cibinong in Indonesiaand correspondingly improvement in financial results

Substantially higher operating profit also being generated bythe Group companies in Thailand, Australia and New Zealand.The plants in Vietnam are operating at full capacity due

to high demand; expansion of cement capacity in Ho ChiMinh City proceeding in line with schedule

Operating profit for Group region Asia Pacific grew markedly

despite negative exchange rate fluctuations.

This Group region continues to offer enormous

future potential for the construction industry.

16

Third quarter 2003

Strategic transactions strengthen core business

Cement Australia was included in the consolidated accounts

for the first time in the third quarter It is the market leader on

that continent and benefits from optimal distribution channels

The bleak order situation in Germany and Switzerland is

resulting in capacity adjustments The Geisingen plant in

southern Germany and Morbio grinding facility in Ticino/

Switzerland are to close

Eternit AG, based in Niederurnen, has been sold and is no

longer consolidated BA Holding AG of Baar is to continue

using the Eternit brand name

These transactions will mean a total charge of CHF 40 million

to the consolidated accounts for fourth quarter 2003

The Group is strengthening market integration and building

a new, cross-border cluster

17

Third quarter 2003

Key financial figures

Million CHF

Group net income

Cash flow from

+ Union Cement, Philippines, from proportionate to full consolidation October 1, 2002 + 2.4 million t

+ Cementos Hispania, Spain January 1, 2003 0.8 million t

+ Proportionate consolidation of Cement Australia (integration of Queensland Cement) June 1, 2003 –

– Baubedarf, Switzerland October 1, 2002 –

+/– Various smaller companies

after minority interests 506

1 African Basket (EGP, ZAR, MAD) 1) 1.29 1.00 1.02 2.0%

1 Asian Basket (AUD, NZD, THB, PHP) 1) 1.03 1.00 0.93 -7.0%

Balance sheet

exchange rates in CHF 30.9.02 31.12.02 30.9.03

1 African Basket (EGP, ZAR, MAD)2) 0.96 1.00 1.04 4.0%

1 Asian Basket (AUD, NZD, THB, PHP)2) 1.04 1.00 1.05 5.0%

Exchange rates

1) weighted by net sales 9 months 2002

Sales volumes

Cement sales in million t

Aggregates sales in million t

Ready-mix concrete sales in million m 3

68.0 + 6.9% + 4.8%

70.5 + 3.7% +1.5%

Africa Middle East 10%

Margin 26.3%

Interest earned on cash and cash equivalents 47 43 Foreign exchange gain (loss) net 15 -8 Financial expenses capitalized 19 10

Total -436 -386

29

Third quarter 2003

Group net income

Before minority interests in million CHF

After minority interests in million CHF

773

727 723 613

1'732

1'447 1'527

31

Third quarter 2003

Investments to maintain productive

32

Third quarter 2003

Financing

Equity capital paid-in

9 Months

+/-2002 2003 1'732 1'527 -11.8%

-543 -510 -6.1%

1'189 1'017 -14.5%

-300 -323 7.7%

-140 -483 245.0%

-330 -335 1.5%

419 -124 -129.6%

9 Months

+/-2002 2003

419 -124 -129.6%

699 661

-79 -22

1'094 519 -52.6%

Million CHF Full Year

2002 Cash flow from operating activities 2'388

capacity and to secure competitiveness -843

Free cash flow 1'545 Expansion investments -409

Financial investments net -245

Dividends paid -358

Financing surplus (requirement) 533

Financing surplus (requirement) 533

2002 Million CHF Full Year

Increase in cash and

33

Third quarter 2003

Financial position

30.09.2002 31.12.2002 30.09.2003

Equity in million CHF Net financial debt in million CHF Gearing

34

Third quarter 2003

De(In)crease in marketable securities 16

Equity component of convertible bonds 58

Increase in financing liabilities 334

Movements of treasury shares net -1

cash equivalents 930

by minority interests -10

Outlook for 2003 I

Europe: further improvement at operating level against

persistently difficult situation in German and Swiss markets.North America: it will be 2004 until the expected economicrecovery and greater level of efficiency at Holcim US impactpositively on this Group region’s operating result

Latin America: despite a mixed picture across the market, avery solid contribution to consolidated results is expected.Africa Middle East: income flow can be expected to remainstable

Asia Pacific: though the US economic situation has a majorinfluence on these markets, our margins will increase

Balanced flow of income between industrialized and emerging markets.

35

Third quarter 2003

Outlook for 2003 II

Assuming there are no fundamental changes in thegeneral framework in the final quarter of 2003, we canmake the following financial forecasts with regard to thefull financial year:

Margins will improve further on the back ofefficiency improvements

After adjusting for exchange rates, operating profitand consolidated net income after minorities willexceed the prior-year figures

An economic recovery in key markets would lead to clear improvements in results for Holcim in 2004.

36

Third quarter 2003