société générale premium review conference bernard fontana ceo holcim group paris december 4 2013

© 2013 Holcim Ltd
Société Générale Premium Review Conference
Bernard Fontana, CEO Holcim Group
Paris, December 4, 2013
© 2013 Holcim Ltd
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Agenda
2
Holcim Strategy and Positioning - base for value creation
Holcim Leadership Journey
Proactive Asset Management - recently announced transactions
Regional overview
Conclusions
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Europe (mature)
Asia Pacific (mature)
North America
0
1'000
2'000
3'000
4'000
5'000
6'000
2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
-6%
0%
-1%
7%

8%
6%
16%
4%
12%
3%
11%
8%
1%
10%
Asia Pacific (emerging)
Europe (emerging)
Global construction growth is driven by emerging markets
and recovery in Europe and US
Construction Industry Value Outlook until 2017E (USD bn)
Source: BMI Market Outlook, 2013
3
Share of market 2008 2017E
- Emerging markets 29% 48%
- Developed markets 71% 52%
Africa / Middle East
Latin America
CAGR
‘13-’17: 7%
CAGR
‘08-’12: 3%
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Holcim’s Strategy House – base for value creation
Creation of Value

Mindsets
Strategy
Goal
Base
Product Focus
Geographic
Diversification
Local Management
Global Standards
People
Better
Cost
Management
Permanent
Marketing
Innovation
Human
Resources
Excellence
Corporate
Social
Responsibility
Sustainable
Environmental
Performance
4
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Positioning – Holcim’s cement market portfolio
Cumulated population

Growth 2012 - 2017E
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%
GDP per capita (at PPP) CAGR 2012 - 2017E
Western
Europe
25.9 Mt
Eastern
Europe
23.3 Mt
Africa
Middle East
23.2 Mt
Mature markets Emerging markets
Size of circles represents influenced capacity 2012
North
America
22.0 Mt
India
60.5 Mt
China
60.0 Mt

Asia Pacific excl.
India, Oceania, China
43.5 Mt
Latin
America
35.5 Mt
Demand
growth
Oceania
4.8 Mt
Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013
5
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Positioning – Holcim’s aggregates market portfolio
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%
Western Europe
64.8 Mt
Africa Middle East
2.3 Mt
Latin

America
14.0 Mt
North
America
41.3 Mt
Asia excl.
Oceania
3.8 Mt
Mature markets Emerging markets
Size of circles represents consolidated sales volumes 2012
Eastern
Europe
9.5 Mt
Demand
growth
GDP per capita (at PPP) CAGR 2012 - 2017E
Cumulated population
Growth 2012 - 2017E
Oceania
23.9 Mt
Sources: Holcim, US Census Bureau, Datastream – IMF: World Economic Outlook, January 2013
6
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Agenda
7
Holcim Strategy and Positioning - base for value creation
Holcim Leadership Journey
Proactive Asset Management - recently announced transactions
Regional overview

Conclusions
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
The Holcim Leadership Journey and a focused capital
allocation to increase short and long term returns
Holcim Leadership Journey
Operating profit increase of at least CHF 1.5 bn and ROIC
AT
> 8%* by 2014
Customer Excellence Cost Leadership
CHF 500 m
> CHF 1 bn
Capture demand through advice & service Optimization of cost base
Customer focus
Value management
Pricing policies
Marketing and sales
Energy and AFR
Logistics
Procurement
Fixed cost
* In similar markets conditions. Corresponds to a ROIC
BT
of > 11.8%
8
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Holcim Leadership Journey is on track
All figures in million CHF 2012 2013 2014
Target achieved Target 9M

Customer Excellence (operating profit impact) 50-100 31 150-200 95 500
-Customer focus
-Value management
-Pricing policies
-Marketing and sales forces skills and motivation
Cost Leadership (operating profit impact) 100-200 127 400-500 531 > 1,000
-Energy and AFR 40 146 > 300
-Logistics 0 104 > 250
-Procurement 48 131 > 250
-Fixed cost 39 151 > 200
Total increase in operating profit
1)
150-300 158 550-700 626 > 1,500
Cash cost to achieve the savings (one-off) < 80 239
3)
0
3)
0
Additional CAPEX net
2)
0-40 48 100-180 105 100-180
1) The base line is the financial year 2011 amounting to CHF 2,308 million (excluding one-off charges 2011 of CHF 375 m and without fluctuations in currency, changes in scope of
consolidation and similar market conditions)
2) Additional CAPEX net will come from prioritization of CAPEX based on the speed of the returns (ROIC).
Current energy fund of CHF 100 million will be maintained through the period 2012 – 2014
3) Original amount was projected < CHF 120 million for 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage
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© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Agenda

10
Holcim Strategy and Positioning - base for value creation
Holcim Leadership Journey
Proactive Asset Management - recently announced transactions
Regional overview
Conclusions
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
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Jerez
Hoever
Ruedersdorf
Carboneras
Castillejo
Alcanar
Dotternhausen
Lae
g
erdorf
Lloseta
Buñol
Gador
Prachovice

Morata de Jalón
Beckum-Kollenbach
Alican te
+
Integrated Cement Plant
Grinding Station
Slag Granulator
+
Value creative portfolio adjustments in Europe
• Acquisition of Cemex’s operations in
North-Western Germany
• Sale of Holcim Česko to Cemex
• Business combination of Holcim and
Cemex in Spain where Holcim will hold
a 25% shareholding
• One time cash payment of EUR 70
million by Holcim to Cemex
• Closing expected in H1 2014, subject
to due diligence, regulatory and other
approvals
11
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
• Holcim to optimize its portfolio in Europe through a series of interlinked
transactions with Cemex in Germany, Spain and the Czech Republic
• Strengthen European footprint for the future and adjust to new economic
reality
• Create value through stronger geographic footprint in North-Western
Germany and connect current Northern Germany and France Benelux
operations

• Additional operating EBITDA and synergies expected to be at least
EUR 20 million p.a.
• Combine operations in Spain to add value and benefit from expected
synergies
Transaction with synergies and strategic relevance driven
by strong geographical focus
12
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Recent developments
• European Union antitrust regulators to further investigate series of
transactions with Cemex
 EU Commission opened a Phase II investigation of the German transaction on
October 22nd, 2013. Phase II could take until end of April 2014 (90 to max. 125
working days).
 EU Commission issued a formal decision on November 14th, 2013 to submit
extensive economic data. Due to this formal decision, Phase II is on hold
until November 29th, 2013.
Next steps
• Decision of the European Commission by March / April, 2014
• Transaction expected to be closed in Q2 2014
Recent developments / Next steps
13
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
ACL acquires Holcim’s 50.01% equity stake in ACC
Evolution of current to target shareholder structure
• Holcim India value of INR 14,584 crore (USD ~2.4 bn) consists of 50.01% stake in ACC for INR
11,727 crore (USD ~2.0 bn) and 9.76% stake in ACL for INR 2,857 crore (USD ~0.4 bn)
• Two step transaction for a total deal value of INR 11,727 crore (USD ~2 bn)

 Step I: ACL acquires 24% of Holcim India for INR 3,500 core (USD ~0.6 bn)
 Step II: ACL issues net 434 mio equity shares for a total value of INR 8,226 crore (USD ~1.4
bn) to Holcim post cancellation of Holcim India’s 9.76% stake in ACL upon merger
• The transaction steps are inter-linked and subject to requisite approvals
Holcim India
ACL ACC
50.01%
9.76%
40.79% 0.29%
50.01%
Holcim
ACC
0.29%
61.39%
ACL
24%
76%
Step I: Acquire 24% in Holcim India
Holcim India
ACL ACC
50.01%
9.76%
40.79% 0.29%
24%
76%
Step II: Merge Holcim India into ACL Target Structure
Interlinked transaction steps
HolcimHolcim
14
© 2013 Holcim Ltd

Annual Premium Review Conference 2013 - Société Générale
Value creation opportunity
Improve
Structure
• More efficient capital structure & EPS accretive
• Re-investment of cash into business
• Collaboration under ‘India Management’ structure
Unlock
Synergies
• Synergy potential of approximately INR 900 crore (USD 150 mio)
through supply chain and fixed cost optimisation
Get
Scale
• Consolidated pan-India footprint with 58 mio tpa capacity
• Confirmed >10 mio tpa capacity expansion underway in both
companies; additional projects in planning (e.g. ACC Ametha)
• Strong and debt free balance sheet; cash flow diversification
Maintain
Front-end
• Complementary premium brands will continue to exist
• Independent go-to-market strategy with strong dealer networks /
distribution in respective markets
Commit to
India Group
• Investment in Marwar Mundwa
• Intent to increase economic ownership in ACC over time
• ACC is a perfect fit, being a Holcim Group company already
15
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale

Recent developments
• November 19
th
- closure of postal ballot for ACL minority shareholders
• November 21
st
– voting results announcement: 68.5% of ACL’s minority
shareholders voted in favor of the deal
• November 23
rd
– Court Convened Extraordinary General Meeting – ACL
received approval from 90.4% of shareholders for the proposed
restructuring
Next steps
• High Court approval (Delhi and Gujarat) on the scheme of amalgamation
under Sec 391-394 of the Companies Act, 1956 (regulatory process)
• Clearance from Foreign Investment Promotion Board (FIPB)
• Transaction expected to be closed in Q2 / Q3 2014
Recent developments / Next steps
16
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Agenda
17
Holcim Strategy and Positioning - base for value creation
Holcim Leadership Journey
Proactive Asset Management - recently announced transactions
Regional overview
Conclusions
© 2013 Holcim Ltd

Annual Premium Review Conference 2013 - Société Générale
• Growth in the construction industry
remained solid
• Drop in sales in all segments: in
cement primarily due to harsher
economic situation in India and in
aggregates due to Holcim Australia
• Holcim Philippines benefitted from
strong demand and better prices
• Despite progress on the cost front,
weaker results in India and negative
currency translation effects led to a
decrease in operating EBITDA
Asia Pacific affected by fall in demand in India
1
Restated due to changes in accounting policies.
18
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
• Construction industry built on last
year’s solid performance
• Higher cement deliveries in Ecuador,
Argentina and Costa Rica
• Divestments and temporary market
exits lowered aggregates sales
volumes significantly; ready-mix
concrete shipments also decreased
• Major efforts to keep costs in check led
to higher operating EBITDA
• Chile, Colombia and Ecuador posted

significantly better results
Latin America still on growth track
1
Restated due to changes in accounting policies.
2
The percentage change like-for-like adjusted for internal trading volumes eliminated in
“Corporate/Eliminations” amounts to -0.6%.
19
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
• European construction markets still
lacked economic stimuli
• Shipments of cement increased
primarily due to the CIS/Caspian
region
• Sales volumes of aggregates as well
as ready-mix concrete decreased
• Capacity adjustments and cost-cutting
measures led to significantly better
operating EBITDA and strong organic
growth
Europe making further headway
20
1
Restated due to changes in accounting policies
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
• The US construction industry became
slightly more dynamic, but in Canada
economic growth slowed down

• Holcim US recorded slight decrease in
cement sales and Aggregate Industries
US sold more aggregates and ready-
mix concrete
• Holcim Canada was unable to
compensate weather-related setbacks
• Improved performances in the US led
to solid organic growth
North America continues its recovery
1
Restated due to changes in accounting policies
21
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
• Demand remained strong in Lebanon
despite the turmoil in Syria
• Reduction in sales volumes in all
segments, primarily due to Morocco
• Grinding stations in West Africa and
Gulf region delivered less cement
• Declining sales volumes in Indian
Ocean region
• Operating EBITDA was down mainly
due to the weaker performance in
Morocco
Subdued economic situation in Africa Middle East
1
Restated due to changes in accounting policies
22
© 2013 Holcim Ltd

Annual Premium Review Conference 2013 - Société Générale
Agenda
23
Holcim Strategy and Positioning - base for value creation
Holcim Leadership Journey
Proactive Asset Management - recently announced transactions
Regional overview
Conclusions
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
• Medium term construction industry growth of 7% is driven by emerging
markets and the recovery in Europe and the US – Holcim is well positioned to
participate
• Self help measures remain an important part of earnings improvement;
Holcim Leadership Journey well on track and with increasing momentum
• Proactive portfolio management in selected markets offer opportunities to
create more value from the existing asset base
• Balanced use of cash for both organic and inorganic growth to deliver
appropriate returns to shareholders resulting in a ROIC
AT
of at least of 8%
• Short-term, for 2013 Holcim expects on a like-for-like basis growth in
operating EBITDA and operating profit coupled with a further improvement in
margins
Conclusions
24
© 2013 Holcim Ltd
Annual Premium Review Conference 2013 - Société Générale
Contact information and event calendar
Contact information

Bernhard A. Fuchs
Michel R. Gerber
Swetlana Iodko
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 26, 2014 Press and analyst conference on
annual results for 2013
April, 28, 2014 Results for the first quarter 2014
April 29, 2014 General meeting of shareholders
July 30, 2014 Half-year results for 2014
25