davy industrials conference new york september 10 2013 holcim

© 2013 Holcim Ltd
Davy Industrials Conference
New York, September 10, 2013
© 2013 Holcim Ltd
© 2013 Holcim Ltd
Holcim at a glance
Holcim’s Strategy House – base for value creation
Holcim Leadership Journey
Proactive Asset Management – recently announced transactions
Key financial figures H1 2013 and outlook
Agenda
© 2013 Holcim Ltd
Davy Industrials Conference 2013 3
Product focus – two core segments and their channels
Cement
Aggregates
Net sales CHF 21.5 billion
Cement Clinker
Product segments 2012 Net sales per segment 2012
 217.5 million tonnes
production capacity
 147 cement and
grinding plants
 Sales: 148.0 million
tonnes
 470 aggregates
plants
 Sales: 159.7 million
tonnes
 1,286 RMX plants
 99 asphalt plants

 Sales of ready-mix
concrete: 46.9 million
m
3
 Sales of asphalt: 9.1
million tonnes
Aggregates
Other construction
materials & services
10.4%
58.0%
31.6%
Op. EBITDA per segment 2012
Op. EBITDA CHF 4.0 billion
3.4%
86.5%
10.1%
Other Construction
Materials and Services
© 2013 Holcim Ltd
Holcim – well balanced global portfolio
Africa Middle East
Europe
Net sales per region 2012
14.7%
26.1%
39.2%
4.3%
15.7%
Europe

Sales volumes per region 2012
North America
Latin America
Africa Middle East
Asia Pacific
(million t or m
3
)
Net sales CHF 21.5 billion
Op. EBITDA per region 2012
Op. EBITDA CHF 4.0 billion
11.4%
14.9%
44.4%
6.6%
22.7%
• Cement 79.2
• Aggregates 27.8
• Ready-mix concrete 12.8
• Cement 24.9
• Aggregates 14.0
• Ready-mix concrete 10.2
• Cement 26.3
• Aggregates 74.3
• Ready-mix concrete 14.7
• Cement 12.0
• Aggregates 41.3
• Ready-mix concrete 8.1
• Cement 8.4
• Aggregates 2.3

• Ready-mix concrete 1.1
Asia Pacific
North America
Latin America
Davy Industrials Conference 2013 4
© 2013 Holcim Ltd
Holcim at a glance
Holcim’s Strategy House – base for value creation
Holcim Leadership Journey
Proactive Asset Management – recently announced transactions
Key financial figures H1 2013 and outlook
Agenda
© 2013 Holcim Ltd
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
Davy Industrials Conference 2013 6
© 2013 Holcim Ltd
Holcim Value Chain
Transactional
Mortars
Ready -mix
Concrete
Asphalt
Concrete
Products
Direct Sales
Direct Sales
Traders
Wholesalers
Retailers
Traders
Wholesalers
Retailers
End - users
General

Contractors
Civil
Engineering
Channels
Transformational
Masons
Self - builders
Cementitious
Materials
(cement,
mineral
components)
Supply
Basic Materials
Processing
Aggregates
(sand, gravel,
stone, recycled
aggregates)
Infrastructure
Commercial /
Industrial
Building
Housing
Demand
A
p
p
l
i

c
a
t
i
o
n
s
Applications and
Construction Fields
Davy Industrials Conference 2013 7
© 2013 Holcim Ltd
Market maturity defines investment focus
Added value through
business integration
Market
maturity
Ready-mix Concrete
Aggregates
Cement
India
Mexico
Eastern Europe
France, Spain
N. America, UK
Emerging markets Transition markets Mature markets
Value Added
Businesses
Davy Industrials Conference 2013 8
© 2013 Holcim Ltd
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
Davy Industrials Conference 2013 9
© 2013 Holcim Ltd
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
Davy Industrials Conference 2013 10
© 2013 Holcim Ltd
Holcim at a glance
Holcim’s Strategy House – base for value creation
Holcim Leadership Journey
Proactive Asset Management – recently announced transactions
Key financial figures H1 2013 and outlook
Agenda
© 2013 Holcim Ltd

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%
Davy Industrials Conference 2013 12
© 2013 Holcim Ltd
Holcim Leadership Journey is on track
All figures in million CHF 2012 2013 2014
Target achieved Target 6M
Customer Excellence (operating profit impact) 50-100 31 150-200 47 500
-Customer focus
-Value management
-Pricing policies

-Marketing and sales forces skills and motivation
Cost Leadership (operating profit impact) 100-200 127 400-500 329 > 1,000
-Energy and AFR 40 126 > 300
-Logistics 052> 250
-Procurement 48 39 > 250
-Fixed cost 39 111 > 200
Total increase in operating profit
1)
150-300 158 550-700 376 > 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 62 100-180
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
Davy Industrials Conference 2013
13
© 2013 Holcim Ltd
Holcim at a glance
Holcim’s Strategy House – base for value creation
Holcim Leadership Journey
Proactive Asset Management – recently announced transactions
Key financial figures H1 2013 and outlook

Agenda
© 2013 Holcim Ltd
Value creative portfolio adjustments in Europe
© 2013 Holcim Ltd
© 2013 Holcim Ltd
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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
Legend
Slag Granulator
+
Acquisition of Cemex West Germany and sale of Holcim Česko
Asset combination in Spain with 25% shareholding by Holcim
Davy Industrials Conference 2013 16
© 2013 Holcim Ltd
• 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
• Closing expected in Q4 2013, subject to due diligence, regulatory and other
approvals
Transaction with synergies and strategic relevance driven
by strong geographical focus
Davy Industrials Conference 2013 17
© 2013 Holcim Ltd
Strengthening geographic footprint in Germany and value
creative combination in Spain
Germany

• Holcim to acquire Cemex’s operations in West Germany, consisting of 1 cement plant and 2 grinding stations
(total cement capacity of 2.5 million tons), 22 aggregates locations, 79 ready-mix plants and 1 slag granulator
• Strong German economy
• Strengthened aggregates position
• Access to stable slag supply in Germany
• West German assets will be integrated with our existing Northern German operations and fully consolidated
Czech
Republic
• Holcim to sell Holcim Česko including 1 cement plant (cement capacity 1.1 million tons), 4 aggregates
locations and 17 ready-mix plants to Cemex
• Holcim to serve customers in the Czech Republic from the Rohoznik plant in Slovakia
• Holcim to de-consolidate Holcim Česko
Spain
• Holcim and Cemex to combine their entire operations in
Spain: cement, ready-mix and aggregates
• Holcim will hold 25% shareholding of the combined
operations and equity account the investment going
forward
• Substantial synergies through higher asset utilization in
Spain
• Value creative option benefiting from synergies and
potential economic upturn
• Holcim to remain shareholder of the combined entity for
at least 5 years
Holcim Cemex
Integrated cement plants (#) 3 6
Grinding stations (#) 1 2
Cement Capacity (Mt) 3.5 9.4
Aggregates quarries (#) 30 30
Ready-Mix plants (#) 57 63

as of August 2013
Davy Industrials Conference 2013 18
© 2013 Holcim Ltd
Unlocking Synergies
Deriving Further Value from the India Platform
© 2013 Holcim Ltd
© 2013 Holcim Ltd
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
Davy Industrials Conference 2013 20
© 2013 Holcim Ltd
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
Davy Industrials Conference 2013 21
© 2013 Holcim Ltd
• Unique opportunity to acquire ACC at attractive price of USD 115 per ton (EV/ Ton)
 Below ACC historic implied price range of USD 124-126 per ton
(1)
 Major Indian cement companies trade at USD 112-132 per ton
• Economically, most favourable deal structure proposed to minorities for approval
 Cash / equity structure improves deal fundamentals – more EPS accretive, lower dilution
 Strong corporate governance with minorities given the opportunity to decide also on cash
• Synergy potential of 150 mio will further improve EPS and dividend prospects
 Focus on back-end cost related synergies; less exposed to exogenous factors
 Supply chain optimisation reduces cost-to-serve by USD 60-70 mio at lower lead and
higher service levels
 Increased productivity and efficiency through USD 70-80 mio savings in fixed cost,
procurement and shared services
• Solid all-India footprint, debt-free balance sheet and cash flow generation brings
ACL ahead with sufficient funds to support its investments
• Interim step – focus on cost synergies and performance delivery first
The five key take-aways for minority shareholders
1
2
3

4
5
(1) Source: NSE. Based on volume weighted average price for a period of 3 years and 5 years preceding July 23, 2013 based on NSE prices.
Davy Industrials Conference 2013
22
© 2013 Holcim Ltd
Holcim at a glance
Holcim’s Strategy House – base for value creation
Holcim Leadership Journey
Proactive Asset Management – recently announced transactions
Key financial figures H1 2013 and outlook
Agenda
© 2013 Holcim Ltd
Key financial figures – H1 2013
Full Year
2012 2012 2013
LFL CIS FX Total
Sales volumes
- Cement (mt)
142.3 71.2 68.6 -2.9% -0.7% -3.7%
- Aggregates (mt)
158.2 74.8 69.4 -6.2% -1.0% -7.2%
- Ready-mix (mm
3
)
45.3 22.1 18.8 -9.5% -5.6% -15.0%
Net sales
21,160 10,166 9,649 -1.4% -2.9% -0.7% -5.1%
Operating EBITDA
3,889 1,884 1,819 -0.6% -2.1% -0.7% -3.4%

Operating profit
1,749 1,082 1,046 0.1% -2.2% -1.2% -3.3%
Net income
1,002 614 760 23.8%
610 387 571 47.4%
Cash flow
2,643 188 267 47.7% -3.2% -2.6% 41.8%
EPS in CHF
3
1.89 1.20 1.75 46.0%
Million CHF
(if not otherwise stated)
6M
+/-
Net income - shareholders
of Holcim Ltd
1
Calculated on the weighted average number of shares outstanding
Note: Due to the changes in accounting policies explained in note 2 of the interim financial statements, the comparative information for the first half and full year 2012 has been restated for
each financial statement line item
1
Davy Industrials Conference 2013 24
© 2013 Holcim Ltd
Outlook for 2013
• Asia Pacific: Positive development in Asia, stable cement
demand in Pacific Rim
• Latin America: Higher demand for construction materials
• Europe: Only slight decrease in sales volumes; positive development
of construction activity in Russia and Azerbaijan
• North America: Cement sales volumes similar to previous year

• Africa Middle East: Muted demand at previous year’s level
Turning to operating EBITDA and operating profit, the Board of Directors and
Executive Committee expect a further improvement of margins. The Holcim
Leadership Journey, which gains further momentum, will contribute to this
development. Under similar market conditions, organic growth in operating
EBITDA and operating profit should be achieved in 2013.
Davy Industrials Conference 2013 25