Third quarter results and outlook for 2006 holcim

Third quarter results and outlook for 2006
1
3
rd
Quarter 2006
Key facts at a glance
 Higher sales in all Group regions and segments
 Price increases, efficiency gains and expanded
scope of consolidation strengthen results
 Higher energy costs and competitive pressure in
some markets have been largely offset
 Internal and external growth produce record results
 Holcim again "Leader of the Industry" in the Dow
Jones Sustainability Index 2006/07
2
3
rd
Quarter 2006
Dynamic growth in key Group markets enables
capacity expansion in cement
Million t * 2007 2008 2009 Total
Europe 1.2 1.5 2.7
North America 0.5 4.0 4.5
Latin America
Africa Middle East 1.7 0.6 2.3
Asia Pacific 5.6 3.7 9.3
Total Group 9.0 5.8 4.0 18.8
* Approved projects of Group companies; partly under construction
3
3
rd

Quarter 2006
 Robust economy supports
construction industry
 Encouraging order situation in
western and southeastern Europe
Europe
4
3
rd
Quarter 2006
Positions in Europe
Cement plant
Grinding plant/terminal
Aggregates
Participation:
Cement plant
1
Under construction
1
1
1
5
3
rd
Quarter 2006
Facts on Europe
 Higher volumes in all segments
 Cement sales rising, in particular in France, Benelux, and
southeastern Europe
 Aggregate Industries UK lifts sales of aggregates and ready-

mix concrete
 Group companies showed significant improvement in results
 Operating EBITDA up by 16.8 percent to CHF 1.464 billion
 Internal operating EBITDA growth at 9.5 percent
6
3
rd
Quarter 2006
 Economic environment largely
sound
 Housing construction cooling
visibly
North America
7
3
rd
Quarter 2006
Positions in North America
1
Cement plant
Grinding plant/terminal
Aggregates
1
Under construction
1
8
3
rd
Quarter 2006
Facts on North America

 Slight increase in cement sales
 Cement, clinker and granulated blast furnace slag again had to
be imported to cover demand
 Sales of aggregates and ready-mix concrete higher thanks to
additions to the scope of consolidation
 Better prices in all market regions
 Operating EBITDA up by 15.1 percent to CHF 776 million
 Internal operating EBITDA growth at 14.6 percent
9
3
rd
Quarter 2006
 Economic upswing continues
unbroken
 Housing construction robust and
infrastructure expanded further
Latin America
10
3
rd
Quarter 2006
Positions in Latin America
Cement plant
Grinding plant/terminal
Aggregates
Participation:
Cement plant
Grinding plant/terminal
11
3

rd
Quarter 2006
Facts on Latin America
 Higher sales in all segments
 Strong volume increases at Holcim Apasco in Mexico
and Holcim Brazil
 Strong results increase in Mexico, El Salvador, Ecuador and
Colombia/Venezuela
 Operating EBITDA up by 13 percent to CHF 955 million
 Internal operating EBITDA growth at 10.5 percent
12
3
rd
Quarter 2006
Africa Middle East
 Construction activity robust in
Morocco and South Africa
 Building activity recovered fast in
Lebanon after end of hostilities
13
3
rd
Quarter 2006
Positions in Africa Middle East
1
1
1
Cement plant
Grinding plant/terminal
Aggregates

Participation:
Grinding plant/terminal
Under construction
1
14
3
rd
Quarter 2006
Facts on Africa Middle East
 With the exception of Holcim Lebanon, all Group
companies lifted domestic sales
 Morocco and South Africa reported very good sales
trend
 With the exception of Holcim Lebanon, all Group
companies contributed to the improved financial result
 Significant 8 percent increase in operating EBITDA to
CHF 512 million
 Internal operating EBITDA growth at 10.5 percent
15
3
rd
Quarter 2006
 Strong growth of Indian construction
industry
 Restrained building activity in
Thailand, the Philippines and
Indonesia
Asia Pacific
16
3

rd
Quarter 2006
Positions in Asia Pacific
1
1
1
Cement plant
Grinding plant/terminal
Aggregates
Participation:
Grinding plant/terminal
Under construction
1
17
3
rd
Quarter 2006
Facts on Asia Pacific
 Group region strengthened by acquisitions in India
 Cement sales volumes increasing in India, Sri Lanka,
Bangladesh, Malaysia and Singapore
 Sales down in Vietnam and Indonesia
 The inclusion of India and a stronger presence in
major urban centers bolsters ready-mix concrete
sales
 Operating EBITDA up by 121.6 percent to CHF 933
million on generally stable prices
 Internal operating EBITDA growth at 0.2 percent
18
3

rd
Quarter 2006
2005
2005
1
2006
LFL CIS FX in CHF
Net sales 18,468 13,425 17,514 9.0% 18.9% 2.6% 30.5%
Operating EBITDA 4,627 3,501 4,489 10.9% 15.1% 2.2% 28.2%
Operating profit 3,316 2,576 3,281 13.0% 12.3% 2.1% 27.4%
Net income 1,818 1,362 1,950 4.4% 43.2%
Cash flow from
operating activities 3,405 1,864 2,348 20.3% 4.8% 0.9% 26.0%
EPS in CHF 6.73 5.04 6.28 4.7% 24.6%
Cash EPS
2
in CHF
7.02 5.23 6.64 4.5% 27.0%
Million CHF
9 Months +/-Full Year
1
adjusted in line with IAS 21 amended
2
excludes the amortization of other intangible assets
Key financial figures
19
3
rd
Quarter 2006
Major changes in the scope of consolidation

Effective as at
+ Aggregate Industries, UK/US March 21, 2005
+ Ambuja Cement Eastern, India April 11, 2005
+ ACC Limited, India January 24, 2006
+ Gujarat Ambuja Cements, India May 3, 2006
+ Meyer Material Company, US July 21, 2006
+ Foster Yeoman, UK September 7, 2006
+/– Various smaller companies
20
3
rd
Quarter 2006
Exchange rates
Statement of income
avera
g
e exchan
g
e rates in CHF
9M 04 9M 05 9M 06 +/-
1 EUR 1.55 1.55 1.57 1.3%
1 GBP 2.30 2.26 2.29 1.3%
1 USD 1.27 1.23 1.26 2.4%
1 LATAM Basket (MXN, BRL, ARS, CLP)
1
0.97 1.00 1.05 5.0%
1 African Basket (EGP, ZAR, MAD)
1
0.99 1.00 1.00 0.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)

1
1.03 1.00 1.05 5.0%
Balance sheet
exchan
g
e rates in CHF
30/09/05 31/12/05 30/09/06 +/-
1 EUR 1.56 1.56 1.59 1.9%
1 GBP 2.28 2.26 2.34 3.5%
1 USD 1.29 1.32 1.25 -5.3%
1 LATAM Basket (MXN, BRL, ARS, CLP)
2
0.98 1.00 0.93 -7.0%
1 African Basket (EGP, ZAR, MAD)
2
0.98 1.00 0.86 -14.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
2
0.99 1.00 0.99 -1.0%
1
weighted by net sales 9M 2005
2
weighted by net sales full year 2005
21
3
rd
Quarter 2006
Sales of cement by region
Δ
9M 05/9M 06 LFL Change in

structure
Total
Europe 2.9% 0.0% 2.9%
North America 1.5% 0.0% 1.5%
Latin America 10.8% 0.0% 10.8%
Africa Middle East 3.8% -2.9% 0.9%
Asia Pacific -5.1% 85.0% 79.9%
Total 3.0% 22.1% 25.1%
13.7
13.5
13.2
24.7
24.0
23.6
39.4
21.9
19.1
11.311.2
10.6
19.5
15.4
17.6
Total Group
9M 2004 77.3
9M 2005 83.0
9M 2006 103.8
Million t
22
3
rd

Quarter 2006
Sales of aggregates by region
Δ
9M 05/9M 06 LFL Change in
structure
Total
Europe 4.0% 14.4% 18.4%
North America -11.1% 18.0% 6.9%
Latin America 9.0% 0.0% 9.0%
Africa Middle East 15.1% 0.0% 15.1%
Asia Pacific -8.2% 4.0% -4.2%
Total -0.9% 13.7% 12.8%
48.0
44.9
15.3
69.6
58.8
43.9
2.32.4
3.3
8.4
7.3
6.8
9.7
9.2
8.9
Total Group
9M 2004 78.5
9M 2005 122.3
9M 2006 138.0

Million t
23
3
rd
Quarter 2006
Sales of ready-mix concrete and asphalt
9.0
11.1
21.9
28.1
32.8
0.2
9M 2004 9M 2005 9M 2006
+23.9%
+23.3%
+28.3%
Ready-mix concrete in million m
3
Asphalt in million t
n/a
+16.7%
+11.2%
n/a: not applicable
24
3
rd
Quarter 2006
17,514
13,425
10,017

9M 2004 9M 2005 9M 2006
Net sales
Like-for-Like (LFL) 732 7.8% 921 9.2% 1,209 9.0%
Change in structure 98 1.0% 2,616 26.1% 2,536 18.9%
Forex movements -208 -2.2% -129 -1.3% 344 2.6%
Total change 622 6.6% 3,408 34.0% 4,089 30.5%
Million CHF