holcim strength performance passion helvea conference 2013 roic past present future bernard fontana ceo holcim ltd

Strength. Performance. Passion.
© 2013 Holcim
Helvea Conference 2013 – ROIC: Past - Present - Future
Bernard Fontana, CEO Holcim Ltd
© 2013 Holcim
Helvea Swiss Equities Conference January 2013
© 2013 Holcim
Agenda
Assessing our strategy and asset portfolio 3
The first eight months of the Holcim Leadership Journey
11
Identifying and capturing growth globally
16
ROIC: Past, Present, Future
20
Helvea Swiss Equities Conference January 2013
2
© 2013 Holcim
Building on a proven strategy…
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
Helvea Swiss Equities Conference January 2013
3
© 2013 Holcim
…and increasing the focus on ROIC
ROIC & HVA
(Holcim Value
Added)
Outside view
Market capitalization
(incl. minority interests)
+ financial debt
(Dividend paid + share
price appreciation) /
Share Price
Company result after
consideration of all

costs of capital,
incl. cost of equity
Key operational
indicator focused on
cash-generation/
efficiency
TSR
(Total
Shareholder
Return)
Op. EBITDA /
Op. EBITDA -
Margin
ROIC & EV
(Enterprise Value)
-
Credit Rating
Internal view
Value Creation
Helvea Swiss Equities Conference January 2013
4
© 2013 Holcim
Sustainable growth through the execution of a 14.5 million
tonne pipeline provides for cost leadership and returns
Capital expansion investments (CHF m) Production capacity cement (mt)
Helvea Swiss Equities Conference January 2013
5
© 2013 Holcim
Reported figures recorded significant currency fluctuations -
total operating EBITDA impact of CHF 1.5 bn (2007- 9M 2012)

Index at 100 (1.1.2007)
Source: Datastream
6
-23% -25% -37% -1% -38% -36%
Helvea Swiss Equities Conference January 2013
© 2013 Holcim
Emerging markets continue to record sound growth rates
7
1
IMF World Economic Outlook Databases as of October 2012
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
-10'000
-5'000
0
5'000
10'000
15'000
20'000
25'000
30'000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
CHF m

GDP growth
Sales Operating EBITDA World (rhs)
1
Advanced economies (rhs)
1
Emerging / developing economies (rhs)
1
Helvea Swiss Equities Conference January 2013
7
© 2013 Holcim
Main financing projects concluded within the last 12 months
Average interest rate of main financings concluded last 12 months: ~ 3.4%
CHF 450 m bond
EUR 422 m
bilateral loans
EUR 2 bn RCF USD 100 m &
EUR 38 m ECA
financings
AUD 500 m bonds
AUD 320 m bilateral loans
BRL 700 m
development
banks
MXN 4 bn bonds
USD 1 bn
CP program
CAD 250 m RCF
EUR 500 m bond
Helvea Swiss Equities Conference January 2013
8

© 2013 Holcim
Holcim’s ROIC has reached good levels on a pre-crisis level,
while witnessing a softening thereafter
1
Based on Invested Capital excluding cash, marketable securities, deferred tax assets/liabilities, prepaid interest, accrued interest
receivable and dividends receivable, advance interest received, accrued interest payable and dividends payable
ROIC before tax
1
:
10.2%
12.9%
14.2%
14.3%
14.6%
10.2%
9.1%
8.3%
6.5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2003 2004 2005 2006 2007 2008 2009 2010 2011
Helvea Swiss Equities Conference January 2013
9

© 2013 Holcim
Agenda
Assessing our strategy and asset portfolio 3
The first eight months of the Holcim Leadership Journey
11
Identifying and capturing growth globally
16
ROIC: Past, Present, Future
20
Helvea Swiss Equities Conference January 2013
10
© 2013 Holcim
The Holcim Leadership Journey and its two pillars
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
* Corresponds to a ROIC

BT
of > 11.8%
Helvea Swiss Equities Conference January 2013
11
© 2013 Holcim
Driving ROIC based on strategy, people, execution
< 8%
ROIC* 2011 ROIC* 2014
Building on competencies, focusing on execution
Proven
strategy
Leadership
Journey
Dedicated
people
> 8%
* After tax
Helvea Swiss Equities Conference January 2013
12
© 2013 Holcim
Differentiation and de-commoditization
Reliable Supplier
Consistent
Quality
Customer Care
Solid Quote-to-
Cash Processes
Competitive
Price
Sustainability

Innovative
Solutions
Technical
Consulting &
Sales
Range of
Products &
Services
Early
Supplier
Involvement
• Differentiation of product &
service offer in all segments
• Tailor-made solutions for
customer segments and single
projects => increase value
content
• An opportunity to create value
for our customers and us
Evolution of VALUE ADDED SOLUTION
Helvea Swiss Equities Conference January 2013
13
© 2013 Holcim
Driving innovation on a global scale through our network
Holcim Switzerland is
supplying the concrete
solution for the 15 km
long Ceneri base tunnel.
Part of this solution is a
unique concrete batching

plant in a cavern deep
inside the mountain
Holcim Canada
developed a special
concrete for road repairs.
A high-early-strength
concrete mix and the
dedication of Holcim’s
crews guaranteed
continuous mobility
Working closely with the
customer, Holcim Apasco
tailormade a number of
mix designs with
specialized application
methodologies to deliver
highly durable and
attractive industrial
concrete floors
Holcim Canada offered
the solutions for the
Niagara Tunnel project in
terms of innovative
concrete types, the
transportation and several
additional process
innovations – built to last
for 100 years without
maintenace
Holcim Singapore

delivers the green
lablled and high-density
concretes for the
construction of man-
made supertrees in a
new tropical garden
Niagara Tunnel
Innovative flooring
Road mobility
Ceneri tunnel
Supertrees
Helvea Swiss Equities Conference January 2013
14
© 2013 Holcim
Agenda
Assessing our strategy and asset portfolio 3
The first eight months of the Holcim Leadership Journey
11
Identifying and capturing growth globally
16
ROIC: Past, Present, Future
20
Helvea Swiss Equities Conference January 2013
15
© 2013 Holcim
Construction demand is linked to size and growth of GDP…
0%
5%
10%
15%

20%
25%
30%
35%
40%
0% 1% 2% 3% 4% 5% 6% 7%
Average Investment ratio (Investments / GDP)
Average GDP growth
Emerging Economies
GDP: 1980 -2011
Emerging Economies
GDP: 2011 - 2017E
Developed
Economies
GDP: 1980 -2011
Developed
Economies
GDP: 2011 -2017E
Developed
Economies
Emerging
Economies
Source: IMF (World Economic Outlook, October 2012), World Bank (Population Statistics, November 2012)
Helvea Swiss Equities Conference January 2013
16
© 2013 Holcim
…in addition to Popurbanization representing a
considerable source of steady demand globally
Source: United Nations (Population Division - November 2012)
0%

10%
20%
30%
40%
50%
60%
70%
80%
90%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Rural Urban
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Rural Urban
0%
10%
20%
30%
40%
50%
60%

70%
80%
90%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Rural Urban
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Rural Urban
Asia
Europe
Latin America
North America
Helvea Swiss Equities Conference January 2013
17
© 2013 Holcim
Global construction growth is strongly driven by emerging
markets
Construction Market Outlook until 2016E (USD bn)
Europe (mature markets):
North America:
Africa Middle East:

Latin America:
Asia Pacific (emerging markets):
Asia Pacific (developed markets):
Source: BMI Market Outlook, 2012
CAGR 2012E -2016E
12.0%:
2.5%:
2.7%:
1.0%:
11.8%:
12.3%:
(Share of Market) 2007 2016E
Emerging markets: 28% 49%
Developed markets: 72% 51%
.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E
Europe (emerging markets): 11.9%:
Helvea Swiss Equities Conference January 2013
18
© 2013 Holcim
Agenda
Assessing our strategy and asset portfolio 3
The first eight months of the Holcim Leadership Journey

11
Identifying and capturing growth globally
16
ROIC: Past, Present, Future
20
Helvea Swiss Equities Conference January 2013
19
© 2013 Holcim
10.2%
12.9%
14.2%
14.3%
14.6%
10.2%
9.1%
8.3%
6.5%
> 11.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Holcim Leadership Journey will allow Holcim to post
a ROIC

BT
of at least 11.8%
1
by 2014
1
Corresponding to Holcim’s WACC
BT
and a ROIC
AT
of at least 8%
2
Based on Invested Capital excluding cash, marketable securities, deferred tax assets/liabilities, prepaid interest, accrued interest
receivable and dividends receivable, advance interest received, accrued interest payable and dividends payable
ROIC before tax
2
:
Helvea Swiss Equities Conference January 2013
20
© 2013 Holcim
Growing ROIC through different levers
Combining these three levers of growth Holcim is able to capture the market growth,
the growth coming from customer excellence and in addition the growth coming from
cost leadership and efficiency improvements that together result in a considerable
increase of ROIC
ROIC
Cost Leadership
Customer Excellence
Selective divestments
Investment efficiency
Market growth

NWC improvement
Internal
External
Holcim Leadership Journey
+
Helvea Swiss Equities Conference January 2013
21
© 2013 Holcim
• Holcim’s strategy has proven successful in the past and will
continue to do so going forward
• The Holcim Leadership Journey will leverage the benefits of
the strategy
• Organizational changes at Holcim enable initiatives in the
Holcim Leadership Journey
• Discipline, incentive and performance management will ensure
growth and improved returns
• Holcim has high upside potential on cash flow generation and
is well financed, with a balanced maturity profile, a strong cash
position and access to a wide range of capital markets
Conclusion
By 2014 Holcim will earn at least its ROIC
AT
of 8%* based on its
strategy, people and execution
* Corresponds to a ROIC
BT
of > 11.8%
Helvea Swiss Equities Conference January 2013
22
© 2013 Holcim

Contact information and event calendar
Contact information
Bernhard A. Fuchs
Binit B. Sanghvi
John M. Feigl
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 27, 2013 Press and analyst conference on annual
results for 2012
April 17, 2013 General meeting of shareholders
May 8, 2013 Results for the first quarter 2013
August 15, 2013 Half-year results for 2013
November 5, 2013 Press and analyst conference for the third
quarter 2013
Helvea Swiss Equities Conference January 2013
23