Third quarter results and outlook for 2008 holcim ltd switzerland

©2008 Holcim Ltd/Switzerland
Third quarter results and outlook for 2008
1
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Overview: Further slowdown in third quarter
y Turbulence in financial sector slowing down real economy
y Inflation and surge in cost of energy and resources
y Differing regional economic developments
y Strong Swiss franc hurts income statement
y Satisfactory results despite difficult environment
y Measures to further improve efficiency
2
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Operating EBITDA growth tampered by a few
important markets
Diversification helps to mitigate negative EBITDA contributions
Change in internal growth
USA/UK:
Recession -350
 Downsizing, plant closures
 Efficiency improvements
 Pass on costs
Spain:
Recession -140
 Downsizing, plant closures
 Efficiency improvements
 Pass on costs
India:
Price/Cost -110
 Continued volume growth
 Efficiency improvements

 Pass on costs
-276
+324
-600
-110
-140
-350
-5%Change in operating EBITDA
India
+6%All other Holcim countries
-11%Total
Spain
USA/UK
9 months 2008 vs
2007, like-for-like
in million CHF
3
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Europe: Slowdown in construction activity
y Marked declines in the UK and Spain
y Rest of western and central Europe has held up well
y Eastern and southeastern Europe remain strong
y Increase in energy costs partially offset
y Slightly declining operating EBITDA
y Planned closure of Torredonjimeno plant in Spain
4
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
North America: Declining construction activity
y US residential tumbling – infrastructure held up
y Slowdown in growth in Canada too

y Cement production scaled back at some US plants
y Sales of aggregates down; sales of concrete rising
y Sharp decrease in operating EBITDA
y Planned closure of the Dundee and Clarksville plants in
the USA
5
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
y Support from residential and infrastructure construction
y Rising sales across all segments
y Higher-than-average rise in ready-mix concrete
y High energy costs and unfavorable exchange rates
y Strong internal operating EBITDA growth
Latin America: Robust building materials demand
6
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Africa Middle East: Strong construction markets
y Mainly impulses from residential construction
y South Africa and Egypt no longer consolidated
y Higher like-for-like sales volumes across the board
y New Settat plant making key contribution to results
y Gratifying internal operating EBITDA growth
7
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
y Building materials demand high; falling market
momentum
y Rising sales across all segments
y Margins squeezed by inflation-related surge in costs
y Less room for maneuver in adjusting prices in India
y Decline in operating EBITDA
Asia Pacific: Good capacity utilization

in construction
8
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Key financial figures
2007 2007 2008
LFL CIS FX in CHF
Net sales 27,052 20,286 19,340 6.6% -1.7% -9.6% -4.7%
Operating EBITDA 6,930 5,340 4,365 -5.2% -4.7% -8.4% -18.3%
Operating profit 5,024 3,961 3,087 -7.9% -6.3% -7.9% -22.1%
Net income 4,545
1
3,857
1
2,107 -38.6%
1
-2.1% -4.7% -45.4%
Cash flow from
operating activities
5,323 3,260 1,658 -42.6% -2.3% -4.2% -49.1%
14.86 12.73 6.63 -47.9%
10.02
3
7.87
3
-15.8%
EPS in CHF
2
Million CHF
9 Months +/- in %Full Year
1

Including a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million and a special dividend of CHF 150 million, net. Like-
for-like and excluding the onetime effects of the previous year net income declined by -8.8%
2
Calculated on the weighted average number of shares outstanding
3
Excluding the non-recurring capital gain on the sale of a stake in Holcim South Africa
9
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Major changes in the scope of consolidation
Effective as at
– Holcim South Africa June 5, 2007
– Egyptian Cement Company January 23, 2008
+ Tarmac Iberia September 1, 2008
+/– Various smaller companies
10
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Exchange rates
Statement of income
average exchange rates in CHF
9M 06 9M 07 9M 08 +/-
1 EUR 1.57 1.64 1.61 -1.8%
1 GBP 2.29 2.42 2.05 -15.3%
1 USD 1.26 1.22 1.06 -13.1%
1 LATAM Basket (MXN, BRL, ARS, CLP)
1
1.02 1.00 0.92 -8.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
1
0.95 1.00 0.88 -12.0%
Balance sheet

exchange rates in CHF
30/09/07 31/12/07 30/09/08 +/-
1 EUR 1.66 1.66 1.58 -4.8%
1 GBP 2.37 2.25 1.98 -12.0%
1 USD 1.17 1.13 1.10 -2.7%
1 LATAM Basket (MXN, BRL, ARS, CLP)
2
1.03 1.00 0.94 -6.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
2
1.03 1.00 0.84 -16.0%
1
Weighted by net sales 9M 2007
2
Weighted by net sales full year 2007
11
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Cement – Sales volumes by region
Δ
9M 07/9M 08 LFL Change in
structure
Total
Europe 0.4% 0.0% 0.4%
North America -9.7% 0.0% -9.7%
Latin America 4.0% 0.0% 4.0%
Africa Middle East 6.3% -43.8% -37.5%
Asia Pacific 1.0% 0.2% 1.2%
Total 0.7% -4.2% -3.5%
11.2
12.4

13.7
26.226.1
24.7
49.1
48.5
39.4
7.0
11.211.3
20.6
19.5
19.8
Total Group
9M 2006 103.8
9M 2007 112.8
9M 2008 108.8
Million t
12
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Aggregates – Sales volumes by region
Δ
9M 07/9M 08 LFL Change in
structure
Total
Europe -7.6% 4.6% -3.0%
North America -13.5% 1.2% -12.3%
Latin America 6.4% 0.0% 6.4%
Africa Middle East 5.8% -67.3% -61.5%
Asia Pacific 16.7% 0.0% 16.7%
Total -7.4% 0.3% -7.1%
37.7

43.0
48.0
74.1
76.4
69.6
3.5
3.0
2.3
2.0
5.2
8.4
10.0
9.7
9.4
Total Group
9M 2006 138.0
9M 2007 137.0
9M 2008 127.3
Million t
13
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Ready-mix concrete and asphalt – Sales volumes
10.5
10.3
32.8
33.6
37.0
11.1
9M 2006 9M 2007 9M 2008
-1.9%

+2.4%
Ready-mix concrete in million m
3
Asphalt in million t
+10.1%
+16.7%
-5.4%
+23.3%
14
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
19,340
20,286
17,514
9M 2006 9M 2007 9M 2008
Net sales
Like-for-Like (LFL) 1,209 9.0% 1,511 8.6% 1,340 6.6%
Change in structure 2,536 18.9% 892 5.1% -348 -1.7%
Forex movements 344 2.6% 369 2.1% -1,938 -9.6%
Total change 4,089 30.5% 2,772 15.8% -946 -4.7%
Million CHF
15
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Net sales by region
Δ
9M 07/9M 08 LFL Change in
structure
Currency Total
Europe 7.5% 1.9% -7.4% 2.0%
North America -7.0% 2.0% -11.0% -16.0%
Latin America 17.4% 0.2% -10.8% 6.8%

Africa Middle East 14.1% -42.0% -4.6% -32.5%
Asia Pacific 11.2% 0.6% -13.5% -1.7%
Total 6.6% -1.7% -9.6% -4.7%
3373
4016
4110
3163
2961
2750
7927
6306
7773
1547
1466
990
4599
4678
3342
9M 2006
9M 2007
9M 2008
Million CHF
16
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
North America
16.8%
Europe
39.5%
Asia Pacific
22.9%

Africa Middle East
5.0%
Latin America
15.8%
Net sales by region
Net sales 9M 2008
17
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
4,365
5,340
4,489
22.6%
26.3%
25.6%
23.4%
9M 2006 9M 2007 9M 2008
Operating EBITDA
Margin
Like-for-Like (LFL) 381 10.9% 586 13.1% -276 -5.2%
Change in structure 530 15.1% 185 4.1% -253 -4.7%
Forex movements 77 2.2% 80 1.8% -446 -8.4%
Total change 988 28.2% 851 19.0% -975 -18.3%
Million CHF
1
Margin on a like-for-like basis
1
18
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Operating EBITDA by region
Δ

9M 07/9M 08 LFL Change in
structure
Currency Total
Europe -2.1% 0.7% -5.1% -6.5%
North America -35.1% 0.1% -7.4% -42.4%
Latin America 11.2% 0.0% -12.1% -0.9%
Africa Middle East 11.0% -49.9% -3.7% -42.6%
Asia Pacific -7.4% 0.0% -11.5% -18.9%
Total -5.2% -4.7% -8.4% -18.3%
444
776
771
924
932
955
1715
1464
1835
307
535
512
1137
1402
933
Million CHF
9M 2006
9M 2007
9M 2008
19
3rd quarter of 2008©2008 Holcim Ltd/Switzerland

3,281
3,961
3,087
18.7%
19.5%
16.0%
16.9%
9M 2006 9M 2007 9M 2008
Operating profit
Like-for-Like (LFL) 336 13.0% 528 16.1% -313 -7.9%
Change in structure 316 12.3% 100 3.0% -250 -6.3%
Forex movements 53 2.1% 52 1.6% -311 -7.9%
Total change 705 27.4% 680 20.7% -874 -22.1%
Margin
Million CHF
1
Margin on a like-for-like basis
1
20
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Operating profit by region
752752
765
1227
1345
1058
264
481
445
807

1035
645
Δ
9M 07/9M 08 LFL Change in
structure
Currency Total
Europe -4.4% 0.1% -4.5% -8.8%
North America -53.0% -0.2% -4.7% -57.9%
Latin America 12.5% 0.0% -12.5% 0.0%
Africa Middle East 10.0% -51.8% -3.3% -45.1%
Asia Pacific -10.8% -0.1% -11.1% -22.0%
Total -7.9% -6.3% -7.9% -22.1%
Million CHF
207
492
525
9M 2006
9M 2007
9M 2008
21
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Net income
2,107
3,857
1,950
1,739
3,300
1,505
9M 2006 9M 2007 9M 2008
Net income

Net income - equity holders of Holcim Ltd
+30.5%
-47.3%
+43.2%
-45.4%
1
+119.3%
+97.8%
Million CHF
1
Including a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million
and a special dividend of CHF 150 million, net
22
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
2,348
3,260
1,658
13.4%
16.1%
8.6%
9M 2006 9M 2007 9M 2008
Cash flow from operating activities
Like-for-Like (LFL) 377 20.3% 807 34.3% -1,389 -42.6%
Change in structure 90 4.8% 46 2.0% -74 -2.3%
Forex movements 17 0.9% 59 2.5% -139 -4.2%
Total change 484 26.0% 912 38.8% -1,602 -49.1%
Million CHF
Margin
23
3rd quarter of 2008©2008 Holcim Ltd/Switzerland

Cash flow statement
2007 2007 2008
Cash flow from operating activities 5,323 3,260 1,658 -49.1%
Net investments to maintain productive
capacity and to secure competitiveness -1,043 -738 -692 -6.2%
Free cash flow 4,280 2,522 966 -61.7%
Expansion investments -2,245 -1'360 -2,143 57.6%
Financial investments net -2,277 -1,428 -929 -34.9%
Dividends paid -872 -849 -1'091 28.5%
Financing requirement -1'114 -1,115 -3,197 186.7%
Million CHF +/-
Full Year 9 Months
24
3rd quarter of 2008©2008 Holcim Ltd/Switzerland
Financing
2007 2007 2008
Financing requirement -1'114 -1,115 -3,197 186.7%
Share capital paid-in -8 -8 –
Capital (repaid to) paid-in by minority
interest
-11 -2 1
Movements of treasury shares net -12 -12 -229
Increase in financial liabilities 1'293 1'121 4,072
In(De)crease in cash and
cash equivalents 148 -16 647 n.a.
Million CHF +/-
9 MonthsFull Year