third quarter results and outlook for 2004 strength performance passion holcim ltd

Operations in EuropeGroup: Cement plant Grinding plant Terminal Grinding plant under construction Cement still being importeddespite new capacity... Despite a weak US dollar, Group regio

Third quarter results and outlook for 2004

Key facts at a glance

Solid internal growth outweighs rising energy prices and

partly weaker Group currencies

Thanks to strong positions in growth markets, sales volumes

were up across all segments in all five Group regions

Efficiency-enhancing measures in sales, administration and

production are taking hold

Stronger operating result and further margin improvements

confirm that Holcim continues to stay on the road to success

Above-average increase in consolidated net income after

minority interests

2

Ongoing progress in third quarter

Except for Germany, strongconstruction activity in WesternEurope

Encouraging development inSoutheast Europe, too

3Q 2004

Facts on Europe

Higher deliveries across all segments

In Western Europe, Holcim reports impressive increase

in cement sales in Spain, and deliveries are higher in

Switzerland, too

In a still difficult market, Holcim Germany lifts turnover

thanks to improved prices

We achieve above-average growth rates in Bulgaria

and Romania

Our Russian Group company’s sales are positively impacted

by the construction boom in the Greater Moscow region

Consolidated operating profit in Europe grew by

20.7 percent to CHF 577 million

4

3Q 2004

Operations in Europe

Group:

Cement plant Grinding plant Terminal Grinding plant under construction

Cement still being importeddespite new capacity

Facts on North America

Holcim US and St Lawrence Cement achieved higher

sales volumes

In financial terms, both companies made considerable

progress

Increased productivity largely helped cushion the impact

of rising energy costs

Despite a weak US dollar, Group region North America

posted a 35.2 percent increase in operating profit to

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

8

3Q 2004

Latin America

Solid construction activity

Cement demand sound in mostmarkets

Brazilian and Chilean constructionmarkets regained momentum

Marked upsurge, especially inArgentina, Venezuela andEcuador

3Q 2004

Facts on Latin America

In Latin America delivery volumes increased in all

segments

Group companies in Mexico and Central America also

performed well

Argentina, Venezuela and Ecuador posted the biggest

increases in cement deliveries

In Mexico Holcim Apasco lifted sales of ready-mix concrete

very significantly

Steps taken early to increase efficiency largely countered

heightened competitive pressure and rising energy prices

Despite a weaker USD, operating profit in Group region Latin

America declined by only 5.7 percent to CHF 559 million

10

Operations in Latin America

Africa Middle East

Lively construction activity, despitedifferent growth pattern acrossregions

Growth driven by road networkexpansion projects and an upturn

in new housing starts

Especially in South Africa highconstruction investment outlays

3Q 2004

Facts on Africa Middle East

All Group companies increased cement deliveries

Ready-mix concrete sales volumes were also encouraging

Group companies in Egypt and Lebanon benefited

from an increase in export contracts

Group companies in West and Southern Africa also

showed a good performance

With the exception of Holcim Morocco, all Group

companies improved their performance

Group region Africa Middle East lifted operating

profit by 29.3 percent to CHF 269 million

The winners in the constructionsector include Thailand, thePhilippines and Vietnam.

3Q 2004

Facts on Asia Pacific

Consolidated cement sales in Asia Pacific have gone up

substantially

The largest volume increases were posted by Group

companies in Thailand, the Philippines and Vietnam

In financial terms, the strongest improvements were

achieved by our companies in the Philippines, Thailand

and New Zealand

Group region Asia Pacific increased operating profit

by 23.8 percent to CHF 187 million

16

3Q 2004

Operations in Asia Pacific

Group:

Cement plant Grinding plant Terminal

Participation:

Cement plant Grinding plant Terminal

Cement capacity Group (Asia Pacific): 36.0 million t; further 18.4 million t with partners.

Group net income

Cash flow from

Balance sheet

exchange rates in 30.9.03 31.12.03 30.9.04

Statement of income

Effective as at Cement

capacity

+ Proportionate consolidation of Cement

+/– Various smaller companies

Major changes in the scope of consolidation

Cement and clinker sales volumes by region

9.5 10.6

∆ 9M 03/9M 04 Volume Change in

Total structure Europe 2.5% 15.5% 18.0%

Sales volumes aggregates and ready-mix concrete

Aggregates sales in million t

Ready-mix concrete sales in million m 3

Net sales by region

Sales 9 months 2004

Europe 35%

America

Middle East 11%

Operating profit by region

Million CHF

478

242 179

Group net income

Before minority interests in million CHF

After minority interests in million CHF

Cash flow from operating activities

Cash flow statement

Investments to maintain productive

capacity and to secure competitiveness -802

Free cash flow 1'817

(De)Increase in cash

33

3Q 2004

Financial position

94.3%

87.4%

70.9%

10'891

34

3Q 2004

17

Million CHF Full Year

2003

Financing surplus (requirement) 517

Capital paid-in 26

Movements of treasury shares net 4

(De)Increase in financing liabilities -676

De(In)crease in marketable securities 30

and cash equivalents -99

Improved market environment in North America.

Robust performance in Latin America

Encouraging results in Africa Middle East and

Asia Pacific

We expect the annual forecast of 8 percent internal

growth on the operating profit level to be clearly

exceeded

The positive development in the Group’s operating

EBITDA margin is likely to continue

March 2, 2005 Annual results 2004

Conference for press and analysts May 2, 2005 First quarter results 2005 May 3, 2005 General Meeting of Shareholders May 6, 2005 Dividend payment

August 18, 2005 Half-year results 2005 November 9, 2005 Third quarter results 2005

Conference for press and analysts

37

3Q 2004

19