results 2011 and outlook presentation of february 29 2012 holcim ltd

EBITDA in the 4 quarter Increasing costs for raw materials, energy and transport as well as the strong Swiss franc impacted operating result  Holcim achieved higher turnover and stable

Results 2011 and Outlook

First cement plant in Holderbank (Switzerland)

EBITDA in the 4 quarter

 Increasing costs for raw materials, energy and transport as well

as the strong Swiss franc impacted operating result

 Holcim achieved higher turnover and stable operating EBITDA

like-for-like

 Non-cash impairments impacted net income

 Proposal for a cash payout from capital reserves of CHF 1.00

per registered share (2010: 1.50)

1

1) 2011 was a year in which the global economy moved at two different speeds Whereas the emerging

markets of Asia and Latin America remained on a solid growth trajectory, the construction economy in the

industrialized nations was subdued Holcim increased sales of cement, aggregates and ready-mix concrete,

and in all four large Group regions The biggest increase was in aggregates Holcim reported higher volumes

of cement and aggregates above all in Latin America and Asia The rise in sales of ready-mix

distribution of one franc per registered share from the capital contribution reserves

Positive volume development in Europe

 Debt crisis dampened economic recovery in the

building industry

 Higher sales of cement, aggregates and ready-mix concrete

 Restructuring and plant closures in Italy, Spain and Eastern

Europe

 Start-up of the Shurovo plant in Russia and first clinker

production at the Garadagh plant in Azerbaijan

 Strong Swiss franc, higher costs and lower receipts from the

sale of CO 2 certificates impacted result

 Non-cash impairments in Spain and Eastern Europe

2

2) In 2011, the economies of the Western European countries in which Holcim is present performedreasonably, with the exception of Italy and Spain Within the EU, however, the debt crisis weighed on the

economic recovery as the year progressed, unsettling many investors In Eastern Europe, manygovernments were forced to resort to drastic cost-cutting measures Economic recovery remained strong in

Switzerland, Russia and Azerbaijan Holcim sold more cement, aggregates and ready-mix concrete in Group

region Europe Only in the area of asphalt did we experience a decline In order to align Group capaci

ty with

anticipated demand, Holcim took the decision to discontinue certain operations – in Italy and Spain inparticular, but also in Eastern Europe – in all segments This was in stark contrast to the growth markets:

One of the most modern cement plants commenced operations in Shuruvo, in Russia, primarily servin

Slight recovery tendencies in North America

 Slightly better economic performance in the US and moderate

development in Canada

 Higher sales volumes in all segments – supported by

acquisitions in the field of aggregates and ready-mix concrete

 Strong Swiss franc and higher production and distribution costs

led to a lower operating EBITDA

 The Catskill and Artesia plants were permanently closed in the

4 th quarter, resulting in non-cash impairments

3

3) Although the US economy grew slightly, particularly in the second half of 2011, the construction economy

did not really get going due to spending cuts in the public sector In Canada, the economy weakened

previous year's level Operating EBITDA for Group region North America declined significantly This was

attributable to negative currency effects, continued weak demand, and higher production and distribution

costs that could not be fully offset despite slight price adjustments As demand for construction materials in

the US will only recover slowly, non-cash impairments on fixed assets were booked in the fourth quarter of

2011 These relate to the permanent closure of the Catskill and Artesia plants of Holcim US

Solid economic development in Latin America

 Lively construction activity in most countries and increased

cement demand

 Higher sales volumes in all segments and a strong rise in the

aggregates segment

 In Ecuador, capacity expansion was concluded and decision

taken to build a new kiln line in Brazil

 Despite higher costs for energy and transport, operating

EBITDA increased like-for-like

4

4) The modest economic recovery continued in Mexico and Central America Ecuador, Colombia and Brazil

benefited from improved access to foreign financing sources and from stable oil and commodity prices

Economic conditions also remained sound in Argentina and Chile Sales volumes increased in all segments

in Latin America The biggest increase was in aggregates Capacity was substantially increased at Holcim

Ecuador's Guyaquil plant in 2011 This will enable the company to participate more in the country's growth

Capacity is also being expanded in the booming market in Brazil By 2014, Holcim will have built a ne

register organic growth on operating EBITDA level

3

Stable markets in Africa Middle East

 Positive economic development in Morocco, Lebanon, West

Africa and in the Middle East

 Decreasing shipments of aggregates, but increased sales

volumes of ready-mix concrete

 Project for doubling clinker capacity at the Fès plant continued

as scheduled

 Operating EBITDA almost reached previous year’s level

like-for-like

5

5) The construction sector developed very positively in the markets relevant to Holcim Cement and

aggregate volumes declined, however This is attributable to increased competition in Morocco, where new

players have joined the market By contrast, sales of ready-mix concrete increased The project to double

clinker capacity at the Fès plant continues to progress according to schedule This facility will commence

production in the second half of 2012 The operating EBITDA of Group region Africa Middle East declined,

primarily as a result of the currency impact In Morocco, the operating result was adversely affected by lower

volumes, higher fuel costs, and strong pressure on prices In order to keep pace with the growth of themarket, the Lebanese Chekka plant had to purchase expensive clinker on specific occasions At least selling

prices could be increased slightly The Group companies in the Indian Ocean only just failed to match the

previous year's result On a like-for-like basis, operating EBITDA almost reached the level of the previous

year

Dynamic building activity in Asia Pacific

 Asia predominantly remained on a growth path and in Oceania

only the mining sector is enjoying a good workload

 Floods and an earthquake impacted building activity in

Australia, Thailand and New Zealand

 Higher sales volumes in all segments

 Selective capacity expansion

 Despite cost pressure, operating EBITDA increased significantly

like-for-like

6

6) Economic growth was strong in the Group region Asia Pacific Thailand's economy stalled temporarily

following the serious floods in the fall In Oceania, the year kicked off with severe flooding in easternAustralia, while the earthquake in New Zealand also hindered the construction sector for a while In India,

ACC and Ambuja Cements sold significantly more cement thanks to capacity increases Siam City Cement

in Thailand supplied rather more cement domestically, and deliveries of aggregates and ready-mix concrete

were up sharply Holcim Vietnam won a number of key orders in the commercial and industrial sector

7) Let us begin with the review of the key financial figures of the fourth quarter before turning to the full-year

2011 results Cement volumes increased by 6.7 percent, driven mainly by the Group regions Asia Pacific

and, to a lesser extent, Latin America, North America and Europe Sales volumes in Group region Africa

Middle East declined slightly Aggregates sales volumes increased by 8.9 pecent, or 7.2 percent on a like-

for-like base This result was mainly driven by Group region Europe, Latin America and Asia Pacific Ready-

mix concrete recorded a 6.5 percent volume growth of which 3.6 percent are due to acquisitions in Europe

and North America Net sales increased by 3.9 percent to 5.3 billion Swiss francs, or a strong 13.1 percent

on a like-for-like base This result is a combination of a good overall volume growth and improving pricing

levels achieved towards the end of 2011 The increasingly positive impact from pricing together with the

good volume growth and some 32 million Swiss francs higher sales from CO2 trading, more than offs

francs, the net income attributable to Holcim shareholders would have reached 337 million Swiss fran

rates in most regions except Africa Middle East The result was also supported by a number of smaller

acquisitions such as Lattimore Materials Inc in the United States of America and Est Granulats / Aube

Bétons in France Ready-mix concrete volumes increased by some 5.4 percent of which some 3.2 percent

being contributed by the aforementioned smaller acquisitions All regions contributed to this volume increase,

albeit at varying levels The overall volume increases benefitted on the one hand from an improved demand

in a number of developed markets, while on the other hand from continued building activity in manyemerging markets Net sales amounted to 20.7 billion Swiss francs, down 4.2 percent compared to the

previous year predominantly due to the negative currency impact with the very strong Swiss franccontributing a negative 12.5 percent to the top line development On a like-for-like base sales

impairment charges in Spain, Eastern Europe and the US as well as by the AfriSam investment

Reconciliation of impairment charges on results

operating EBITDA level provisions of 17 million Swiss francs relating to the plant closures in the US were

booked The depreciation charge of just above 2 billion Swiss francs was negatively impacted by impairment

charges of 359 million Swiss francs; stemming from Spain with 237 million Swiss francs, with the remainder

split among Hungary, the Czech Republic and 32 million Swiss francs being related to the United Stat

reached more than 1 billion Swiss francs, declining some 11.2 percent compared to the previous year

Major changes in the scope of consolidation

Effective as at + Est Granulats, Aube Bétons and Hupfer AG (Moldau) January 1, 2011

+/– Various smaller companies

average exchange rates in CHF 2009

Aggregates – Sales volumes by region

1 LATAM Basket (MXN, BRL, ARS, CLP) 1 0.98 1.00 0.87 -13.0%

1 Asian Basket (AUD, IDR, INR, THB, PHP) 1 0.95 1.00 0.89 -11.0%

1 LATAM Basket (MXN, BRL, ARS, CLP) 1 1.06 1.00 0.90 -10.0%

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

1 7 9

3.

Net sales by region

17) Net sales amounted to 20.7 billion Swiss francs, representing an overall decrease of 4.2 percent.Excluding changes in the scope of consolidation amounting to 0.8 percent and foreign exchange movements

contributing a negative 12.5 percent, the like-for-like change amounted to an increase of 7.5 percent The

main driver of the change in structure was the already mentioned acquisition of Lattimore Materials In

Net sales by region

Net sales 2011

Europe 28.6%

North America 14.0%

Asia Pacific 37.4%

Latin Americ a 15.5%

Africa Middle East 4.5%

19) Operating EBITDA nearly reached 4 billion Swiss francs, representing a decline of 12.3 percent.Adjusting for the negative currency impact amounting to a negative 12.3 percent and the changes in the

scope of consolidation of 0.2 percent, the operating EBITDA remained more or less flat at minus 0.2 percent

compared to last years level The positive momentum recorded during the second half of 2011 with good

volume and pricing growth more than offsetting negative cost impacts, could not fully compensate for the

weaker result recorded in the first half of 2011 However, excluding the impact from lower CO2 sales

of 32

million Swiss francs compared to the previous year, the like-for-like operating EBITDA in fact

increased by

21 million Swiss francs, or some 0.5 percent

Operating EBITDA by region

 2010/2011 LFL Change in Currency Total

that all witnessed higher pricing and volumes, partially impacted by higher costs however On the other

hand, Holcim Philippines reported a negative contribution

overall decline was mainly driven by the aforementioned impairment charges recorded in the fourth quarter

2011

Cash flow from operating activities

+/-Cash flow from operating activities 3,888 3,659 2,753 -24.8%

Net investments to maintain productive

capacity and to secure competitiveness

25) The financing surplus for 2011 amounted to 248 million Swiss francs Lower operating EBITDA and

higher income taxes more than offset lower net financial expenses, hence resulting in a decline of the cash

flow from operating activities to just below 2.8 billion Swiss francs, or down 24.8 percent On a for-like

like-base the decline amounted to minus 14 percent with the other decline coming from negative currencymovements For the full year, we invested a total of 752 million Swiss francs to sustain the asset base while

expansion investments amounted to 886 million Swiss francs

Financial position

Million CHF

26) Total shareholders’ equity decreased to 19.7 billion Swiss francs, strongly driven by currency translation

in the amount of 1.1 billion Swiss francs Net financial debt slightly increased to 11.5 billion Swiss fran

58.8 percent as of December 31 2011, up from 53.8 percent in the previous year

Financial debt, maturities and liquidity as of December 31, 2011

Maturity profile (CHF million)

Liquiditysummary

 Cash + marketablesecurities:CHF 2,951million

 Cash + marketablesecurities+ unusedcommitted creditlines:CHF 7,269million Debtsummary

 S&P CreditRating: A-2 / BBB, outlookstable

 FitchCreditRating: F2/ BBB, outlookstable

 Moody’s CreditRating: P-2 / Baa2,outlooknegative

1 termcommittedcreditlines

 On February 15, 2012, Holcim celebrated 100 years in business

 From a cement plant in Holderbank, Holcim evolved into a leading construction materials Group

 Dominik Flammer has described the company's history in 10 decades in a book

 Key to success are the employees; internationally renowned photographers put them in focus

 The photo book will be published tomorrow together with an exhibition at the Fine Arts Museum in Berne

 We will report about two sponsoring activities in the course of the year

 With volunteering activities, employees thank the communities and neighbors at production sites

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© 2012Holcim Ltd/Switzerland Financialresults2011

28) The Aargauische Portland Cement Factory was founded in Holderbank, in the Canton of Aargau, on

February 15, 1912 Within a year, this plant, state-of-the-art facility for its era, commenced operationsproducing 90,000 tonnes annually Over the next hundred years, one of the world's leading building materials

groups would evolve from this one factory To mark Holcim's anniversary, Dominik Flammer, a company

historian, has summarized the milestones of the company over the ten decades of its existence in anattractive book If any of you do not yet have a copy, please help yourselves to one in the foyer after this

presentation The key to the success of any company is its employees Marco Grob has taken staff portraits

all over the world, while David Hiepler and Fritz Brunier, who specialize in industrial photography, have

captured a number of plants across all five continents on camera The result is an art book that we are

pleased to present to you It is a small token of thanks for all who feel connected to Holcim The fascinating