Third quarter results and outlook for 2006 presentation of november 8 2006 markus akermann CEO theophil h schlatter CFO holcim

Third quarter results and outlook for 2006


Presentation of November 8, 2006
Markus Akermann, CEO
Theophil H. Schlatter, CFO

The spoken word prevails.
1
3
rd
Quarter 2006
Key facts at a glance
 Hig
 Price
 Hig
 Inter
 Holc
her sales in all Group regions and segments
increases, efficiency gains and expanded
scope of consolidation strengthen results
her energy costs and competitive pressure in
some markets have been largely offset
nal and external growth produce record results
im again "Leader of the Industry" in the Dow
Jones Sustainability Index 2006/07


1) In the first nine months of the year, Holcim succeeded to further increase sales in all
Group regions and segments. This also confirms the success of Holcim's global
business portfolio and the dual product strategy based on cement and aggregates.
Both, Aggregate Industries, acquired in 2005, and our entry into the Indian market had
a positive impact on the Group. Higher sales volumes, price adjustments and efficiency
gains were key to the encouraging result helping to counter higher energy costs and
strong pressure on prices in some markets. We were able to partly offset the increase

in thermal energy costs thanks to comprehensive programs to increase the use of
alternative fuels and raw materials. The solid earnings reported by our Group
companies, coupled with external growth, translated into record results.
We are delighted to have been named Dow Jones Sustainability Index "Leader of the
Industry" two years in succession.

2
3
rd
Quarter 2006
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
Dynamic growth in key Group markets enables
capacity expansion in cement


2) The acquisitions made in recent years have created a platform to give the Group an
excellent geographic positioning, in particular in the emerging markets. Building on this
basis and working from established market positions, Holcim can participate fully in the
dynamic growth and selectively expand cement capacity. By 2009 alone, Group

cement capacity will be increased by 19 million tonnes, which, with the exception of the
major Ste. Genevieve plant in the USA, will be achieved mainly in the emerging
markets. This figure relates to projects authorized and announced to date, some of
which are already under construction. The fact that these projects can be implemented
fast and cost-effectively drawing on existing structures will have a positive impact on
future profitability.
I will comment on the individual expansion projects when I come to report on the Group
regions.


2
3
3
rd
Quarter 2006


Robust economy supports
construction industry
Encouraging order situation in
western and southeastern Europe
Europe


3) The robust economic environment impacted positively on the European building
industry. The level of new orders was particularly strong in France and the Benelux
countries, but also in Spain and Switzerland. In the UK, demand held up thanks to
residential and commercial projects, and in Germany, the general improvement in the
economy contributed to greater construction activity. The southeastern European
economies continued to expand, the building materials industry benefiting from huge

demand for housing and increased investment in infrastructure.

4
3
rd
Quarter 2006
Positions in Europe
Cement plant
Grinding plant/terminal
Aggregates
Participation:
Cement plant
1
Under construction
1
1
1


4) In September 2006, Aggregate Industries UK took over building materials group
Foster Yeoman. This company operates attractive quarries in southern England and in
Scotland. Foster Yeoman is also active in the asphalt business and operates a network
of sales centers for aggregates in important ports along the coast of northern and
eastern Europe.
Holcim will be building a grinding plant with an annual capacity of 0.6 million tonnes
near Rouen, to the west of Paris. The new plant will also serve the Paris market directly
via the Seine. We are also increasing the capacity in the Swiss plants of Siggenthal
and Eclépens.
Dynamic market growth in southeastern Europe results in increasing demand for
building materials. Holcim Bulgaria has modernized its Beli Izvor plant in an initial

phase and substantially expanded the kiln line's clinker capacity. In 2007, we will
increase the plant's capacity by a further 0.3 million tonnes to a total of 1.4 million
tonnes. We are also increasing our cement capacity in Romania. Reaching an annual
capacity of 1.5 million tonnes, the country's largest kiln line is currently under
construction at the Campulung plant.


3
5
3
rd
Quarter 2006
Facts on Europe






I
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
nternal operating EBITDA growth at 9.5 percent

5) In Europe, we increased deliveries in all segments. We reported higher sales
volumes in particular in France, the Benelux countries, and southeastern Europe.
Holcim Spain posted record sales of ready-mix concrete.
Romania, Serbia and Bulgaria were the leading performers among the Group’s eastern
European operations; Holcim posted its largest percentage sales increases in these
three states.
Aggregate Industries UK lifted sales of aggregates and ready-mix concrete, but
reported a minor decline in volumes in the heavily cyclical asphalt and concrete
products segment. Holcim Germany reported higher volumes in all segments.
The performance of all Group companies in Europe improved, in some cases
significantly. Operating EBITDA increased by 16.8 percent to approximately 1.5 billion
Swiss francs, and internal operating EBITDA growth reached 9.5 percent.

6
3
rd
Quarter 2006


Economic environment largely
sound
Housing construction cooling
visibly
North America


6) While the US real estate market has cooled noticeably in the third quarter,
commercial construction and infrastructure expansion projects witnessed gratifying
growth.
The situation in the Canadian provinces of Quebec and Ontario, the principal markets

for St. Lawrence Cement, was subdued in recent months.


4
7
3
rd
Quarter 2006
Positions in North America
1
Cement plant
Grinding plant/terminal
Aggregates
1
Under construction
1


7) Acquired this July, Meyer Material Company was fully integrated into Aggregate
Industries US. The Chicago-based building materials firm strengthens Aggregate
Industries’ aggregates and related businesses in the Great Lakes region, and opens up
a further area of growth potential for the group.
Construction of the 4 million tonne Ste. Genevieve plant on the Mississippi is
progressing to schedule and from the second half of 2009 will allow Holcim US to
efficiently supply the large market of the river system.
In addition, St. Lawrence Cement is building a 0.5 million tonne grinding station at its
Mississauga plant for the manufacture of GranCem® products based on granulated
blast furnace slag.

8

3
rd
Quarter 2006
Facts on North America






I
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
nternal operating EBITDA growth at 14.6 percent


8) North America saw a slight increase in consolidated cement deliveries. Owing to a
continuing demand overhang, again large quantities of cement and clinker had to be
imported.
Aggregate Industries US succeeded in maintaining market share. Several regions
faced decreases in sales of aggregates, ready-mix concrete and asphalt owing both to
bad weather conditions and to the economic situation. St. Lawrence also reported
setbacks in these segments. Thanks to the first-time nine-month consolidation of sales
of Aggregate Industries US and the inclusion of Meyer Material Company's volumes
effective July, deliveries nevertheless rose noticeably.

Operating EBITDA increased by 15.1 percent to 776 million Swiss francs. In a positive
price environment, internal operating EBITDA grew by 14.6 percent.


5
9
3
rd
Quarter 2006


Economic upswing continues
unbroken
Housing construction robust and
infrastructure expanded further
Latin America


9) The economic upswing in Latin America continued unbroken. Compared with the
first nine months of 2005, demand for cement and other building materials increased in
all countries. Once again, this market growth was driven by investment in private and
public housing and public-sector infrastructure projects.

10
3
rd
Quarter 2006
Positions in Latin America
Cement plant
Grinding plant/terminal

Aggregates
Participation:
Cement plant
Grinding plant/terminal


10) There have been no fundamental changes in cement capacity in Latin America this
year. However, in a number of markets we have expanded aggregates and ready-mix
concrete operations and strengthened our position in the area of alternative fuels and
raw materials.

11
3
rd
Quarter 2006
Facts on Latin America





I
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
nternal operating EBITDA growth at 10.5 percent

6
11) Holcim reported higher sales volumes in all segments. Holcim Apasco in Mexico
and Holcim Brazil both posted substantial sales increases. Cemento de El Salvador
and Panamá Cement turned in very strong sales performances. In Ecuador, we again
achieved record sales. Deliveries also held up well in Colombia, although the still low
cement prices are recovering only very slowly. To meet the steady growth in domestic
demand, Holcim Venezuela has slightly reduced exports of cement. Deliveries by
Cemento Polpaico in Chile and, above all, Minetti in Argentina were significantly higher
year-on-year. With the exception of Brazil, all Group companies in this region
contributed to the pleasing result. With prices still too low, Holcim Brazil reported an
operating loss. A sharp increase in energy costs and government-regulated prices
pressured the results of Minetti in Argentina. In Group region Latin America, operating
EBITDA increased by 13 percent to 955 million Swiss francs. Internal operating
EBITDA growth came to 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



12) Economic development in Group region Africa Middle East was generally
satisfactory, despite regional differences in growth. In Lebanon, on the other hand, the
economy was hit by the events of war. Construction activity remained robust in
Morocco and South Africa.

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


13) In Morocco, work on the new cement plant near Casablanca is progressing very
well. The fully equipped cement plant with an annual capacity of 1.7 million tonnes will
commence operations on schedule at the middle of next year.
In the 1st quarter of 2007, a grinding plant with a capacity of 2 million tonnes of cement
will be commissioned in Abu Dhabi. Holcim holds a minority stake in this company.
The capacity of the grinding plant in Roodepoort, South Africa, will be increased by 0.6
million tonnes of cement by 2008.
At the end of August, we signed a conditional agreement to dispose of a substantial

share of our majority interest in Holcim South Africa. By doing so, Holcim seeks to act
in accordance with the statutory obligations under Black Economic Empowerment and

7
ensure Holcim South Africa an optimal market positioning. If all preconditions are
satisfied, we expect the transaction to close sometime next year. Until that point,
Holcim South Africa will remain part of the Group.

14
3
rd
Quarter 2006
Facts on Africa Middle East
 W
 Mo
 W
 Sig
 Int
ith the exception of Holcim Lebanon, all Group
companies lifted domestic sales
rocco and South Africa reported very good sales
trend
ith the exception of Holcim Lebanon, all Group
companies contributed to the improved financial result
nificant 8 percent increase in operating EBITDA to
CHF 512 million
ernal operating EBITDA growth at 10.5 percent


14) With the exception of Lebanon, all Group companies succeeded in further lifting

domestic deliveries. Although Holcim Lebanon maintained clinker and cement
production at its plant in Chekka almost until the end of hostilities, cement deliveries
practically dried up for a while, but have in the meantime recovered. Holcim Morocco
reported an impressive increase in sales in all segments. The unbroken sales growth
achieved by Holcim South Africa was driven by an upturn in construction activity.
Domestic sales remained quite stable at Egyptian Cement, and cement deliveries in
the Indian Ocean region matched the previous year's level.
All Group companies contributed to this solid result, with the exception of Holcim
Lebanon. Results in Egypt, Morocco and South Africa were sharply higher. Operating
EBITDA of Group region Africa Middle East rose by 8 percent to CHF 512 million.
Internal operating EBITDA growth came to 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


15) The majority of construction markets in Group region Asia Pacific have continued to
make good progress. India showed a very dynamic development of the construction
industry. In Thailand, political uncertainty dampened economic activity, and in the
Philippines, budget constraints negatively affected the investment climate. In

Indonesia, business activity in the construction sector has not yet picked-up.


8
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


16) ACC has been consolidated since the end of January 2006, and Gujarat Ambuja
Cements since this May.
Group companies in the fast growing market of India are continually adapting
production capacity to rising cement demand. By the end of 2007, we will have
commissioned an additional 5.6 million tonnes of capacity. Capacity will be expanded
partly at existing plants, and partly by the construction of new grinding plants. In order
to catch market growth, our Group companies in India will commission additional 3.7
million tonnes in 2008, and thus increase total capacity to 44 million tonnes. The
merger of Gujarat Ambuja Cements with Ambuja Cement Eastern will be concluded

this year.
We have intensified vertical integration in this Group region by investing in ready-mix
concrete operations in major urban centers.
In China, where we want to increase our holding in Huaxin Cement to a majority
interest, the authorization process has not yet been entirely completed, with the
approval of the Chinese Securities Exchange Commission still pending. We assume
that we will obtain a capital majority in this company by the beginning of 2007. Huaxin
Cement will also be further growing in its markets in the coming years and expand
production capacity.

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









17) Despite a very heavy monsoon season, the Indian Group companies significantly
increased deliveries of cement. We also sold more cement in Sri Lanka, Bangladesh,
Malaysia and Singapore. Our Group company in Thailand virtually compensated for
weaker domestic demand with exports. In Vietnam and Indonesia volumes decreased.
Domestic sales were stable at Holcim Philippines. However, a production bottleneck at
the Davao plant led to a reduction in exports. Holcim New Zealand succeeded in
largely offsetting the weather-related decline in deliveries in the first half. The region
also saw an increase in sales of ready-mix concrete. The marked improvement in the

9
financial result reflects the expanded scope of consolidation, rigorous cost controls and
generally stable sales prices. In this Group region, operating EBITDA rose sharply by
121.6 percent to 933 million Swiss francs. Since economic and political developments
have dampened construction activity in some markets and cement prices are still
unsatisfactory, internal operating EBITDA growth came to only 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%
Operatin

g
EBITD
A
4,627 3,501 4,489 10.9% 15.1% 2.2% 28.2%
Operatin
g
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


18) As Markus Akermann already mentioned, we are once again able to present record
results: In the first nine months of the year, sales continued to increase in all Group
regions and segments. Overall, net sales increased by 31 percent and operating
EBITDA by 28 percent. Operating profit improved by 27 percent and cash flow from
operating activities advanced 26 percent.

19
3
rd
Quarter 2006
Major changes in the scope of consolidation
Effective as at
+
A
+
A
+
A
+
G
+
M
+
F
+/–
V
ggregate Industries, UK/US March 21, 2005
mbuja Cement Eastern, India April 11, 2005
CC Limited, India January 24, 2006
ujarat Ambuja Cements, India May 3, 2006
eyer Material Company, US July 21, 2006
oster Yeoman, UK September 7, 2006
arious smaller companies


19) The major changes in the scope of consolidation in the first nine months of 2006

were the first-time consolidation of ACC, Gujarat Ambuja Cements, Meyer Material
Company and Foster Yeoman. The annual cement capacity of newly consolidated
companies in India accounts for 33.4 million tonnes, whereas Meyer Materials’ and
Foster Yeoman’s businesses are aggregates, ready-mix concrete, asphalt and other
building materials and services with a total turnover of approximately 770 million Swiss
francs.


10
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


20) The income statement was positively affected by foreign exchange rate movements
compared to the first nine months of 2005. On the other hand, there was a negative
impact on the balance sheet, as some of the major currencies depreciated against the
Swiss franc compared to year-end 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


21) Consolidated cement sales volumes increased 25 percent to 104 million tonnes in
the first nine months of the year. The largest volume increases were achieved in Group
regions Asia Pacific and Latin America. Internal growth was 3 percent and changes in
the consolidation structure added 22 percent to deliveries, the majority of which was
related to the newly consolidated Indian companies. Negative internal growth in Group
region Asia Pacific is mainly due to a production bottleneck at the Davao plant in the
Philippines and a drop in sales volumes in Indonesia.

11
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


22) Aggregates sales volumes achieved a substantial increase of 13 percent to
138 million tonnes. Additional deliveries by Aggregate Industries were a significant
factor here. Higher output in western and southeastern Europe and South Africa also
had a positive impact on sales volumes. Group region North America reported negative
internal growth of 11 percent, which is attributable to unfavorable weather conditions
this summer and to the slowdown in the residential housing market.

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


23) Shipments of ready-mix concrete increased by 17 percent to 33 million cubic
meters. Latin America and Europe were the main contributors to internal growth of 6
percent. Total asphalt volume sold increased by 23 percent to 11 million tonnes.
Growth here is mainly attributable to changes in the consolidation structure related to
Aggregate Industries.

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

24) Total consolidated net sales amounted to 17.5 billion Swiss francs. All Group
regions contributed to the internal growth of 9 percent driven by both overall volume
and price increases.


12
25
3
rd
Quarter 2006
Net sales by region
Δ
9M 05/9M 06 LFL Change in
structure
Currency Total
Europe 7.9% 13.0% 1.5% 22.4%
North America 7.5% 10.1% 5.1% 22.7%
Latin America 15.7% 0.0% 4.2% 19.9%
Africa Middle East 14.1% -1.4% -0.9% 11.8%
Asia Pacific 5.2% 92.5% 1.7% 99.4%
Total 9.0% 18.9% 2.6% 30.5%
4110
3349
1932
2750
2294
2177
6306

3631
5153
1141 1384
1547
3342
1676
1459
9M 2004
9M 2005
9M 2006
Million CHF


26
3
rd
Quarter 2006
North America
22.8%
Europe
34.9%
Asia Pacific
18.5%
Africa Middle East
8.6%
Latin America
15.2%
Net sales by region
Net sales 9M 2006

26) Europe’s and North America’s share in net sales decreased to 35 percent of Group
total net sales and 23, percent respectively. 15 percent of net sales were generated in
Latin America, 9 percent in Africa Middle East and the remaining 18 percent in Asia
Pacific, which substantially increased due to our recent acquisitions in India. This
reflects our strategy targeted towards growth markets.

27
3
rd
Quarter 2006
2,792
3,501
4,489
27.9%
26.1%
25.6%
26.5%
9M 2004 9M 2005 9M 2006
Operating EBITDA
Margin
Like-for-Like (LFL) 302 11.9% 272 9.7% 381 10.9%
Change in structure 30 1.2% 475 17.1% 530 15.1%
Forex movements -77 -3.0% -38 -1.4% 77 2.2%
Total change 255 10.1% 709 25.4% 988 28.2%
*
margin on a like-for-like basis
Million CHF
*

27) Operating EBITDA reached 4.5 billion Swiss francs. Factoring in the changes in the
scope of consolidation and in product mix, the operating EBITDA margin was, as might
be expected, somewhat lower at 25.6 percent. Excluding acquisitions and currency
effects, the operating EBITDA margin improved by 0.4 percentage points to 26.5
percent despite a further increase in energy costs.


13
28
3
rd
Quarter 2006
Operating EBITDA by region
Δ
9M 05/9M 06 LFL Change in
structure
Currency Total
Europe 9.5% 5.7% 1.6% 16.8%
North America 14.6% -4.0% 4.5% 15.1%
Latin America 10.5% 0.0% 2.5% 13.0%
Africa Middle East 10.5% -2.7% 0.2% 8.0%
Asia Pacific 0.2% 120.0% 1.4% 121.6%
Total 10.9% 15.1% 2.2% 28.2%
*
adjusted to exclude certain Group charges
776
415
674
955

845844
1464
978
1253
512
474
353
933
421
373
9M 2004*
9M 2005
9M 2006
Million CHF


28) The majority of our Group regions posted double-digit internal growth in operating
EBITDA. In Europe, operating EBITDA reached 1.5 billion Swiss francs. Despite
regional differences within the construction sector, internal growth was 10 percent with
significant contributions from Spain, Russia, France and Benelux. In North America,
operating EBITDA amounted to 776 million Swiss francs mainly due to higher sales
prices. Despite higher import volumes, internal growth reached 15 percent. The
negative impact of changes in the consolidation structure is entirely attributable to
Aggregate Industries. The seasonal negative first quarter of Aggregate Industries US
was included for the first time this year. In Latin America, operating EBITDA was 955
million Swiss francs. Internal growth came to 11 percent. Main contributor with respect
to this increase was Mexico driven by pre-election infrastructure and construction
projects. These additional returns were partly offset by the negative trend in Brazil due
to the persisting price pressure. Thanks to better sales volumes and prices due to
strong construction activities in South Africa and Egypt, operating EBITDA reached 512

million Swiss francs in Group region Africa Middle East. Internal growth was 11
percent. Operating EBITDA for Group region Asia Pacific more than doubled to 933
million Swiss francs, most of which is related to our acquisitions in India.

29
3
rd
Quarter 2006
3,281
2,576
1,787
18.7%
19.2%
17.8%
19.9%
9M 2004 9M 2005 9M 2006
Operating profit
Goodwill amortization 190 10.7%
Like-for-Like (LFL) 265 17.1% 310 17.3% 336 13.0%
Change in structure 23 1.5% 315 17.6% 316 12.3%
Forex movements -51 -3.3% -26 -1.4% 53 2.1%
Total change 237 15.3% 789 44.2% 705 27.4%
*
margin on a like-for-like basis
*
Margin
Million CHF


29) Operating profit increased 27 percent to 3.3 billion Swiss francs. Growth on a like-

for-like basis reached 13 percent and changes in the scope of consolidation added 12
percent. Overall, the operating profit margin decreased from 19.2 percent to
18.7 percent mainly due to the change in product mix. On a like-for-like basis the
operating profit margin increased by 0.7 percentage points to 19.9 percent.


14
30
3
rd
Quarter 2006
Operating profit by region
765
657
602
1058
923
626
445
411
286
645
276
198
*
adjusted to exclude certain Group charges
9M 2004*
9M 2005
9M 2006
Δ

9M 05/9M 06 LFL Change in
structure
Currency Total
Europe 9.7% 3.3% 1.6% 14.6%
North America 17.0% -12.5% 4.6% 9.1%
Latin America 14.1% 0.0% 2.3% 16.4%
Africa Middle East 11.2% -2.9% 0.0% 8.3%
Asia Pacific 1.1% 131.9% 0.7% 133.7%
Total 13.0% 12.3% 2.1% 27.4%
Million CHF
525
481
272


31
3
rd
Quarter 2006
Group net income
1,950
1,362
872
1,505
1,153
686
9M 2004 9M 2005 9M 2006
Net income
Net income - equity holders of Holcim Ltd
+33.0%

+30.5%
+21.0%
+43.2%
1
restated in line with new and revised IFRS, effective January 1, 2005
2
adjusted in line with IAS 21 amended
1, 2 2
Million CHF
+68.1%
+56.2%


31) As a result of the strong operating performance, Group net income increased by 43
percent to 1.95 billion Swiss francs. Net income attributable to equity holders of Holcim
Ltd improved by 31 percent to 1.5 billion Swiss francs.

32
3
rd
Quarter 2006
1,669
1,864
2,348
16.7%
13.9%
13.4%
15.3%
9M 2004 9M 2005 9M 2006
Cash flow from operating activities

Million CHF
Like-for-Like (LFL) 158 10.4% 62 3.7% 377 20.3%
Change in structure 22 1.4% 150 9.0% 90 4.8%
Forex movements -38 -2.5% -17 -1.0% 17 0.9%
Total change 142 9.3% 195 11.7% 484 26.0%
*
*
margin on a like-for-like basis
Margin



15
32) Cash flow from operating activities moved up by 26 percent or 484 million Swiss
francs to 2.3 billion Swiss francs. This increase is mainly attributable to the rise in
operating EBITDA due to better pricing, higher volumes and efficiency gains. On the
other hand, a rise of 365 million Swiss francs in net working capital needs and a 123
million Swiss francs increase in interest payments had a negative impact. Internal
growth of cash flow from operating activities was very strong at 20 percent. Cash flow
from operating activities in percent of net sales reached 13.4 percent and 15.3 percent
on a like-for-like basis.

33
3
rd
Quarter 2006
Cash flow statement
2005 2005 2006
Cash flow from operating activities 3,405 1,864 2,348
26.0%

Net investments to maintain productive
capacity and to secure competitiveness -879 -573 -640 11.7%
Free cash flow 2,526 1,291 1,708
32.3%
Expansion investments -607 -361 -775 114.7%
Financial investments net -4,853 -4,724 -1,597 -66.2%
Dividends paid -558 -491 -639 30.1%
Financing requirement -3,492 -4,285 -1,303
-69.6%
Million CHF +/-
Full Year 9 Months


33) Net investments to maintain productive capacity and to secure competitiveness
rose to 640 million Swiss francs, expansion investments to 775 million Swiss francs.
Net financial investments amounted to 1.6 billion Swiss francs. The most significant
investments were the purchase of a 15 percent stake in Gujarat Ambuja Cements as
well as the acquisitions of Foster Yeoman and Meyer Material Company.

34
3
rd
Quarter 2006
Financing
2005 2005 2006
Financing requirement -3,492 -4,285 -1,303
-69.6%
Share capital paid-in – – 1,707
Capital paid-in by minority interests 21 2 19
Movements of treasury shares net 435 434 -39

In(De)crease in financial liabilities 2,424 4,141 -315
In(De)crease in marketable securities 9 -30 108
(De)Increase in cash and
cash e
q
uivalents
-603 262 177
-32.4%
Million CHF +/-
9 MonthsFull Year


35
3
rd
Quarter 2006
Million CHF
13,466
12,693
12,892
13,669
14,250
18,629
Financial position
Net financial debt Total shareholders' equity Gearing
98.5%
89.1%
69.2%
30.09.2005 31.12.2005 30.09.2006
EBITDA net interest coverage 5.9 6.0 6.4

EBIT net interest coverage 4.4 4.3 4.7



16
35) These transactions were financed through a capital increase by Holcim Ltd, which
generated a cash inflow of 1.7 billion Swiss francs. Total shareholders’ equity
increased by a substantial 4.4 billion Swiss francs to 18.6 billion Swiss francs, and net
financial debt remained more or less unchanged since year-end 2005 at 12.9 billion
Swiss francs. As a consequence, gearing was further decreased to 69 percent as of
September 2006. EBITDA and EBIT net interest coverage stood at comfortable levels
at 6.4 and 4.7, respectively.

36
3
rd
Quarter 2006
EBITDA margin targets per segment in future







Growth strategy in Asia and expansion in the Aggregates and
Other Construction Materials and Services segments lead to
individual margin targets
The new operating EBITDA margin targets are aimed at
sustainably exceeding the weighted average costs of capital

(WACC) of 8 percent after tax.
The new operating EBITDA margin targets are:
33 percent for Cement and Mineral Components
27 percent for the Aggregates segment
8 percent for Other Construction Materials and
Services
These margin targets are to be reached by 2010


36) Having significantly strengthened our business portfolio by means of acquisitions in
the Asian region as well as in the aggregates and Other Construction Materials and
Services segments as part of our growth strategy, we have now set specific margin
targets per segment at Group level aimed at sustainably exceeding the Group’s
weighted average costs of capital (WACC) of 8 percent after tax. Factoring in the
changes in the scope of consolidation already announced, the Group-wide average
operating EBITDA margin target for the segment Cement and Mineral Components is
33 percent. A corresponding target of 27 percent has been set for Aggregates. And an
8 percent target has been defined for the segment Other Construction Materials and
Services, including ready-mix concrete and asphalt. We want to achieve these margin
targets by 2010.

37
3
rd
Quarter 2006
6.2%
5.3%
6.3%
6.8% 7.5%
0%

10%
2001 2002 2003 2004 2005
0
200
400
600
800
1'000
1'200
1'400
31.4%
30.7%
31.4%
32.3%
28.9%
20%
30%
2001 2002 2003 2004 2005
0
2'000
4'000
6'000
Operating EBITDA margin target by segment
Cement and Mineral
Components: 33 percent
20.2%
20.9%
20.6%
20.4%
21.1%

0%
10%
20%
30%
2001 2002 2003 2004 2005
0
200
400
600
800
1'000
1'200
1'400
Aggregates:
27 percent
Other Construction Materials
and Services: 8 percent
% of net sales
in million CHF
% of net sales
in million CHF
% of net sales
in million CHF


37) Over the past few years we have achieved the greatest progress in the segment
cement and mineral components, despite massive increases in energy prices. We are
aiming for a further improvement in this segment, for which we have set an average
operating EBITDA margin target of 33 percent. We attach a high priority to the
increased use of alternative fuels, as well as to the wider deployment of mineral

components. New production capacity under construction or in the planning stage will
crucially contribute to improving margins.
Global resource management of cement, clinker, coal and mineral components, will
become increasingly important within the Group in future and will release additional
synergies.
We have set the average operating EBITDA margin target for the aggregates segment
at 27 percent. The Aggregates Operational Review (AOR) identifies potential for

17
improvement in this segment Group-wide. By multiplying best practices along the entire
value chain, we aim to exploit the full potential that this segment offers.
In the Other Construction Materials and Services segment we are aiming to achieve an
average operating EBITDA margin target of 8 percent. This segment includes in
particular ready-mix concrete and asphalt as well as concrete products, concrete
elements and construction services. By standardizing business processes and
systems, we will also make progress in this segment. Above all, in the ready-mix
concrete sector we will be able to save on production costs by using the “mix master”,
which optimizes the concrete mix.
In all segments, our focus will remain on operational improvement along the entire
value chain, right up to the construction site. We will continue to move ahead with
product innovation and expanding the range of services we offer, thereby generating
greater benefit for the customer. The development of new and the multiplication of
existing efficiency programs cover the entire value chain, including administration, the
IT service centers and central procurement. Finally, targeted training should make the
most of the potential for efficiency gains across all sectors and segments.

38
3
rd
Quarter 2006

Outlook for 2006
In the 2006 business year, internal operating EBITDA
growth will substantially exceed the long-term average
of 5 percent


38) Thanks to new consolidations, excellent geographic diversification and a strong
performance by the Group companies, and despite a cyclical slowdown in the US in the
third quarter, Holcim will be in a position to report encouraging full-year financial
results.
Internal operating EBITDA growth will substantially exceed the long-term average of 5
percent.

39
3
rd
Quarter 2006
Cement – Price/volume variances per region
Europe
Belgium 0.7% 12.1%
France 2.4% 3.2%
Germany 5.7% 4.6%
Switzerland -0.6% 1.4%
Italy 3.6% -4.3%
Hungary -4.7% 8.7%
Czech Republic -0.3% 3.9%
Slovakia 6.3% -4.3%
Croatia -3.6% 9.4%
Romania 1.6% 14.6%
Bulgaria 9.0% 16.1%

Serbia 8.1% 26.3%
Russia 26.8% 7.4%
Spain 17.5% -5.5%
Domestic cement volumes
+/- 9M 05/9M 06 +/- 9M 05/9M 06 *
Domestic cement prices
* if not otherwise indicated calculation based on local currencies



18
40
3
rd
Quarter 2006
North America
Canada 5.8% 1.4%
USA 14.7% -0.4%
Latin America
Mexico 6.1% 11.9%
El Salvador 7.5%
1
13.8%
Costa Rica 1.3%
1
12.6%
Nicaragua 6.5%
1
3.3%
Panama 2.1%

1
25.8%
Venezuela -3.8%
1
31.7%
Colombia 40.6% 10.0%
Ecuador 6.1%
1
15.0%
Brazil -21.9% 8.2%
Chile -2.4% 4.6%
Argentina 2.5% 15.0%
Domestic cement volumes
+/- 9M 05/9M 06 +/- 9M 05/9M 06 *
Domestic cement prices
* if not otherwise indicated calculation based on local currencies
1
calculation in USD
Cement – Price/volume variances per region


41
3
rd
Quarter 2006
Africa Middle East
Morocco 1.7% 10.0%
Egypt 12.8% -1.9%
Lebanon -0.4%
1

7.5%
Indian Ocean 6.0% 0.0%
South Africa 3.0% 7.0%
Domestic cement volumes
+/- 9M 05/9M 06 +/- 9M 05/9M 06 *
Domestic cement prices
* if not otherwise indicated calculation based on local currencies
1
calculation in USD
Cement – Price/volume variances per region


42
3
rd
Quarter 2006
Asia Pacific
Azerbaijan 15.4% -0.7%
India
1
22.3% 18.8%
Sri Lanka 15.9% 11.3%
Bangladesh 11.7% 10.1%
Thailand
2
Vietnam 6.7% -10.8%
Malaysia 30.3% 8.0%
Indonesia 17.2% -24.3%
Phili
pp

ines
2
Australia -0.5% -11.1%
New Zealand 5.6% -1.5%
Domestic cement volumes
+/- 9M 05/9M 06 +/- 9M 05/9M 06 *
Domestic cement prices
* if not otherwise indicated calculation based on local currencies
1
Ambuja Cement Eastern only (April to September)
2
locally not yet published; will be updated as soon as local results are public
Cement – Price/volume variances per region



19
43
3
rd
Quarter 2006
Contact information and event calendar
Contact information
Corporate Communications
Phone +41 58 858 87 10
Fax +41 58 858 87 19

Investor Relations
Phone +41 58 858 87 87
Fax +41 58 858 80 09

www.holcim.com/investors
Mailing list:
www.holcim.com/subscribe
Event calendar
February 28, 2007 Annual results 2006
Conferences for press and analysts
May 3, 2007 First quarter results 2007
May 4, 2007 Annual General Meeting
May 9, 2007 Dividend payment
August 23, 2007 Half-year results 2007
November 7, 2007 Third quarter results 2007
Conferences for press and analysts


Strength. Performance. Passion.




20