2006 results and outlook for 2007 holcim switzerland

©2007 Holcim/Switzerland
2006 results and outlook for 2007
1
2006 results©2007 Holcim/Switzerland
Key facts at a glance
 Record result and strong organic growth
 Stake in Ambuja Cements strengthens position in India
 Acquisitions in USA and UK underline significance of
aggregates segment
 Growth in all Group regions
 Innovation in terms of markets, products and processes
 Recognition as leader in area of sustainable development
 Proposal for higher dividend
2
2006 results©2007 Holcim/Switzerland
Facts on Europe
 Healthy order books in construction sector
 Substantially higher cement sales in several markets
 Volumes of aggregates and ready-mix concrete up
 Improved prices and greater efficiency
 Operating EBITDA increases by 22.5 percent
 Internal operating EBITDA growth of 14.9 percent
3
2006 results©2007 Holcim/Switzerland
Facts on North America
 Solid demand in infrastructure and commercial construction,
residential construction weak
 Local cement production up
 Meyer Material strengthens aggregates and ready-mix
concrete
 Holcim US and St. Lawrence Cement post record results

 Operating EBITDA 11.3 percent higher
 Internal operating EBITDA growth of 11.7 percent
4
2006 results©2007 Holcim/Switzerland
Facts on Latin America
 Domestic demand and exports accelerate growth
 Higher cement sales volumes posted by all companies
 Strong increase in aggregates and ready-mix concrete
 Some significantly higher results seen thanks to better prices
 Operating EBITDA up by 10.5 percent
 Internal operating EBITDA growth of 10.4 percent
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2006 results©2007 Holcim/Switzerland
Facts on Africa Middle East
 Economic environment intact, and generally sound construction
activity
 Cement deliveries up significantly in some cases
 Increase in volumes of aggregates and ready-mix concrete
sold
 With the exception of Holcim Lebanon, better results achieved
 Operating EBITDA 12.7 percent higher
 Internal operating EBITDA growth of 17.8 percent
6
2006 results©2007 Holcim/Switzerland
Facts on Asia Pacific
 Huge demand for infrastructure and residential construction
 Strong rise in cement sales thanks to new consolidation of
ACC/Ambuja Cements in India
 New consolidations lift ready-mix concrete deliveries
 Several Group companies achieve better results

 Operating EBITDA increases 139.6 percent
 Internal operating EBITDA growth of 5.3 percent
7
2006 results©2007 Holcim/Switzerland
Key financial figures
1
adjusted in line with revised IFRS
2
before goodwill amortization
3
proposal of the board of directors
LFL CIS FX in CHF
Net sales 13,215 18,468 23,969 9.0% 19.5% 1.3% 29.8%
Operating EBITDA 3,588 4,627 6,086 13.2% 17.5% 0.8% 31.5%
Operating profit 2,511
2
3,316 4,385 17.0% 14.6% 0.6% 32.2%
Net income 1,128 1,789 2,719 0.7% 52.0%
Cash flow from
operating activities
2,622 3,405 4,423 20.4% 8.6% 0.9% 29.9%
EPS in CHF 4.21 6.61 8.64 0.9% 30.7%
Dividend per share
in CHF 1.25 1.65 2.00
3
21.2%
Dividend payment
286 382 509
3
33.2%

Million CHF
+/-
2004
1
2005
1
2006
8
2006 results©2007 Holcim/Switzerland
Major changes in the scope of consolidation
Effective as at
+ Aggregate Industries, UK/US March 21, 2005
+ Ambuja Cement Eastern, India April 11, 2005
+ ACC, India January 24, 2006
+ Gujarat Ambuja Cements, India May 3, 2006
+ Meyer Material, US July 21, 2006
+ Foster Yeoman, UK September 7, 2006
+/– Various smaller companies
9
2006 results©2007 Holcim/Switzerland
Exchange rates
Statement of income
average exchange rates in CHF
2004 2005 2006 +/-
1 EUR 1.54 1.55 1.58 1.9%
1 GBP 2.27 2.27 2.31 1.8%
1 USD 1.24 1.25 1.25 0.0%
1 LATAM Basket (MXN, BRL, ARS, CLP)
1
0.94 1.00 1.02 2.0%

1 African Basket (EGP, ZAR, MAD)
1
0.98 1.00 0.97 -3.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
1
1.00 1.00 1.05 5.0%
Balance sheet
exchange rates in CHF
31/12/04 31/12/05 31/12/06 +/-
1 EUR 1.55 1.56 1.61 3.2%
1 GBP 2.18 2.26 2.40 6.2%
1 USD 1.14 1.32 1.22 -7.6%
1 LATAM Basket (MXN, BRL, ARS, CLP)
1
0.82 1.00 0.92 -8.0%
1 African Basket (EGP, ZAR, MAD)
1
0.96 1.00 0.89 -11.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
1
0.90 1.00 1.02 2.0%
1
weighted by net sales full year 2005
10
2006 results©2007 Holcim/Switzerland
Exchange rates – Translation gains / losses
Million CHF
2004
1
2005

1
2006
Net sales -392 189 246
Operating EBITDA -127 55 39
Operating profit -82 42 22
Net income - equity holders of Holcim Ltd -31 25 16
Cash flow from operating activities -83 38 30
Total shareholders' equity -586 1,474 -619
Net financial debt -465 1,070 11
1
adjusted in line with revised IFRS
11
2006 results©2007 Holcim/Switzerland
Currency sensitivity
USD sensitivity
Million CHF
USD/CHF
at 1.25
USD/CHF
at 1.24
+/-
Net sales 23,969 23,935 -34
Operating EBITDA 6,086 6,077 -9
Net income 2,719 2,719 0
Cash flow from operating activities 4,423 4,418 -5
Euro sensitivity
Million CHF
Euro/CHF
at 1.58
Euro/CHF

at 1.57
+/-
Net sales 23,969 23,946 -23
Operating EBITDA 6,086 6,081 -5
Net income 2,719 2,706 -13
Cash flow from operating activities 4,423 4,418 -5
12
2006 results©2007 Holcim/Switzerland
Cement – sales volumes by region
Δ
2005/2006 LFL Change in
structure
Total
Europe 3.5% 0.0% 3.5%
North America -2.7% 0.0% -2.7%
Latin America 9.3% 0.0% 9.3%
Africa Middle East 6.1% -2.7% 3.4%
Asia Pacific -2.8% 93.1% 90.3%
Total 3.2% 24.0% 27.2%
17.7
18.2
17.5
32.9
31.8
30.8
55.0
28.9
25.8
15.3
14.8

14.0
25.9
20.6
23.7
Total Group
2004 102.1
2005 110.6
2006 140.7
Million t
13
2006 results©2007 Holcim/Switzerland
Aggregates – sales volumes by region
Δ
2005/2006 LFL Change in
structure
Total
Europe 5.0% 14.7% 19.7%
North America -13.8% 14.0% 0.2%
Latin America 8.5% 0.0% 8.5%
Africa Middle East 15.5% 0.0% 15.5%
Asia Pacific -3.1% 3.1% 0.0%
Total -1.5% 12.3% 10.8%
65.165.0
21.2
95.4
79.7
57.8
3.23.2
4.1
11.2

9.7
9.0
12.7
12.1
11.7
Total Group
2004 104.2
2005 169.3
2006 187.6
Million t
14
2006 results©2007 Holcim/Switzerland
Ready-mix concrete and asphalt – sales volumes
13.3
15.3
29.3
38.2
44.2
0.2
2004 2005 2006
+23.9%
+15.0%
+30.4%
Ready-mix concrete in million m
3
Asphalt in million t
+15.7%
+8.5%
15
2006 results©2007 Holcim/Switzerland

23,969
18,468
13,215
2004 2005 2006
Net sales
Like-for-Like (LFL) 908 7.2% 1,329 10.1% 1,647 9.0%
Change in structure 99 0.8% 3,735 28.2% 3,608 19.5%
Forex movements -392 -3.1% 189 1.5% 246 1.3%
Total change 615 4.9% 5,253 39.8% 5,501 29.8%
Million CHF
16
2006 results©2007 Holcim/Switzerland
Net sales by region
Δ
2005/2006 LFL Change in
structure
Currency Total
Europe 8.0% 13.0% 2.2% 23.2%
North America 6.5% 8.4% 2.4% 17.3%
Latin America 14.6% 0.4% 1.4% 16.4%
Africa Middle East 16.0% -1.5% -3.1% 11.4%
Asia Pacific 5.9% 101.3% 0.2% 107.4%
Total 9.0% 19.5% 1.3% 29.8%
5520
4704
2630
3675
3158
2785
8673

4744
7037
1540
1873
2086
4745
2288
1945
2004
2005
2006
Million CHF
17
2006 results©2007 Holcim/Switzerland
North America
22.3%
Europe
35.1%
Asia Pacific
19.2%
Africa Middle East
8.5%
Latin America
14.9%
Net sales by region
Net sales 2006
18
2006 results©2007 Holcim/Switzerland
3,588
4,627

6,086
27.2%
25.1%
25.4%
26.0%
2004 2005 2006
Operating EBITDA
Margin
Like-for-Like (LFL) 376 11.4% 377 10.5% 611 13.2%
Change in structure 28 0.8% 607 16.9% 809 17.5%
Forex movements -127 -3.8% 55 1.6% 39 0.8%
Total change 277 8.4% 1,039 29.0% 1,459 31.5%
1
margin on a like-for-like basis
Million CHF
1
19
2006 results©2007 Holcim/Switzerland
Operating EBITDA by region
Δ
2005/2006 LFL Change in
structure
Currency Total
Europe 14.9% 5.3% 2.3% 22.5%
North America 11.7% -2.4% 2.0% 11.3%
Latin America 10.4% 0.1% 0.0% 10.5%
Africa Middle East 17.8% -2.8% -2.3% 12.7%
Asia Pacific 5.3% 134.7% -0.4% 139.6%
Total 13.2% 17.5% 0.8% 31.5%
1033

551
928
1244
1126
1095
1966
1202
1605
692
614
483
1366
570
465
Million CHF
2004*
2005
2006
*
adjusted to exclude certain Group charges
20
2006 results©2007 Holcim/Switzerland
6.0%
6.2%
5.3%
6.3%
6.8% 7.5%
0%
10%
2001 2002 2003 2004 2005 2006

0
200
400
600
800
1'000
1'200
1'400
32.6%
31.4%
30.7%
31.4%
32.3%
28.9%
20%
30%
2001 2002 2003 2004 2005 2006
0
2'000
4'000
6'000
Operating EBITDA margin target by segment
Cement and Mineral
Components: 33 %
20.7%
20.2%
20.9%
20.6%
20.4%
21.2%

0%
10%
20%
30%
2001 2002 2003 2004 2005 2006
0
200
400
600
800
1'000
1'200
1'400
Aggregates: 27 %
Other Construction Materials
and Services: 8 %
% of net sales
in million CHF
% of net sales
in million CHF
% of net sales
in million CHF
21
2006 results©2007 Holcim/Switzerland
4,385
3,316
2,511
18.3%
18.0%
19.0%

19.3%
2004 2005 2006
Operating profit
Like-for-Like (LFL) 416 19.3% 401 16.0% 564 17.0%
Change in structure 20 0.9% 362 14.4% 483 14.6%
Forex movements -82 -3.8% 42 1.7% 22 0.6%
Total change 354 16.4% 805 32.1% 1,069 32.2%
Margin
Million CHF
1
margin on a like-for-like basis
2
before goodwill amortization
1
2
22
2006 results©2007 Holcim/Switzerland
Operating profit by region
993
866
849
1402
1125
850
602
524
403
933
362
271

Δ
2005/2006 LFL Change in
structure
Currency Total
Europe 19.4% 2.8% 2.4% 24.6%
North America 13.1% -9.4% 2.2% 5.9%
Latin America 14.9% 0.1% -0.3% 14.7%
Africa Middle East 20.3% -2.9% -2.5% 14.9%
Asia Pacific 11.0% 147.5% -0.8% 157.7%
Total 17.0% 14.6% 0.6% 32.2%
Million CHF
677
639
366
*
before goodwill amortization and adjusted to exclude certain Group charges
2004*
2005
2006
23
2006 results©2007 Holcim/Switzerland
Group net income
2,719
1,789
1,128
2,104
1,511
889
2004 2005 2006
Net income

Net income - equity holders of Holcim Ltd
+30.4%
+39.2%
+21.6%
+52.0%
1
1
+66.0%
+55.7%
Million CHF
1
adjusted in line with revised IFRS
24
2006 results©2007 Holcim/Switzerland
4,423
3,405
2,622
18.5%
18.4%
19.8%
20.4%
2004 2005 2006
Cash flow from operating activities
Million CHF
Like-for-Like (LFL) 62 2.4% 244 9.3% 695 20.4%
Change in structure 24 0.9% 501 19.2% 293 8.6%
Forex movements -83 -3.2% 38 1.4% 30 0.9%
Total change 3 0.1% 783 29.9% 1,018 29.9%
Margin
1

margin on a like-for-like basis
1