half year results 2009 holcim ltd

© 2009 Holcim Ltd
Half-Year Results 2009
© Herzog & de Meuron
1
Half-Year Results 2009© 2009 Holcim Ltd
Highlights Half-Year 2009
 Due to its strong presence in growth markets, Holcim performed
well in a difficult economic market environment and significantly
increased its cash flow
 Robust organic growth in Asia Pacific, Latin America and Africa
Middle East in the second quarter
 At 24.8 percent in the second quarter, operating EBITDA margin
exceeds previous year’s 23.8 percent
 Strong balance sheet and sound liquidity
 Based on the successful cost management, the target for fixed cost
reduction in 2009 has been increased from CHF 375 million
to CHF 600 million
 Asia will continue to grow and Latin America and Africa Middle East
are also likely to follow favorable trends; in Europe and North
America, the stimulus programs will have a positive impact on
demand building up gradually over the next year
2
Half-Year Results 2009© 2009 Holcim Ltd
Europe: Sales of building materials still falling
 In some markets, the recession has intensified even more since the
beginning of this year
 Spain, the UK and Eastern Europe including Russia and Azerbaijan
are suffering from the economic downturn
 Group companies quickly adjusted production capacity in all seg-
ments: Two kilns in Eastern Europe mothballed; Pleven
plant in Bulgaria is presently only operating as a grinding station

 As previously announced, the Torredonjimeno plant in Spain was
permanently closed in the second quarter of 2009
 Despite cost-cutting measures in all areas, only the Group
companies in Germany and Switzerland were able to match their
prior-year performance
 Internal operating EBITDA development was at -44.8 percent
(Q2: -29.8 percent)
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Half-Year Results 2009© 2009 Holcim Ltd
North America: Still no upturn
 The economic situation remained fraught but in the US, although the
downturn became less severe in the second quarter
 Canada also reported a decline in overall economic output
 All Group companies registered a decline in deliveries
 Holcim US responded swiftly to the decline in the market and in
addition to the closure of the Dundee and Clarksville plants moth-
balled the Artesia and Mason City plants
 Aggregate Industries US systematically continued with measures to
cut costs and reduce capacity
 The new Ste. Genevieve plant of Holcim US produced its first clinker
in July
 Internal operating EBITDA development was at -57.3 percent
(Q2: -35.7 percent)
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Half-Year Results 2009© 2009 Holcim Ltd
Latin America: Regionally mixed demand
 The global slowdown in growth had a mixed impact on Latin America
 Positive market trends in Ecuador and Colombia owing to the house-
building and infrastructure sectors
 In the first half, Group companies in Mexico, El Salvador, Brazil,

Chile and Argentina each mothballed one kiln line
 The ready-mix concrete network was streamlined in several markets
 Despite the deconsolidation of Holcim Venezuela, this Group region
achieved good operating results in local currency terms
 Holcim increased its stake in Cemento El Salvador from 64 to more
than 90 percent
 Internal operating EBITDA growth was 6.6 percent
(Q2: 7.7 percent)
5
Half-Year Results 2009© 2009 Holcim Ltd
Africa Middle East: Stable construction markets
 Despite slightly weaker economic growth, the development in Africa
Middle East was largely stable
 High demand for building materials related to housebuilding and
infrastructure projects in Morocco
 After a sluggish start of the year and a strike in the transportation
sector, Holcim Morocco increased cement sales slightly
 The easing of political tensions in Lebanon stimulated construction
activity and the Chekka plant produced at full capacity
 The commissioning of a second cement mill at National Cement in
Abu Dhabi, strengthened the market position in the Gulf region
 Internal operating EBITDA development was -1.5 percent
(Q2: 9.9 percent)
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Half-Year Results 2009© 2009 Holcim Ltd
Asia Pacific: Construction sector generally growing
 Construction activity remained lively in most countries of Asia Pacific
 In India in particular, high pent-up demand in the infrastructure
sector and positive development of the agriculture sector
 The Indian Group companies significantly increased their cement

sales in all regions of the country
 Holcim increased domestic deliveries of cement and ready-mix
concrete in the Philippines and in Vietnam
 Despite predominantly unfavorable exchange rates, this Group
region increased its operating EBITDA in Swiss francs
 Asia Pacific posted an internal operating EBITDA growth of 22.5
percent (Q2: 27.4 percent)
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Half-Year Results 2009© 2009 Holcim Ltd
Holcim in preparation for the next economic upturn
 Markets such as the US, UK, Spain and Eastern Europe are
expected to remain challenging
 Asia, Latin America as well as Africa Middle East are likely to follow
a favorable trend
 On balance, Holcim's strong footprint in the emerging markets
partially offsets the negative EBITDA development in mature markets
 In Europe and North America, the stimulus programs will have a
positive impact on demand building up gradually over the next year
 Investments will continue to be kept to a minimum, and current
assets will be strictly managed
 Rigorous cost reduction, favorable development of cash flow,
successful capital market and refinancing transactions as well as the
strategic expansion in Australia and China provide the basis for
strengthening the Group in preparation for the next economic upturn
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Half-Year Results 2009© 2009 Holcim Ltd
Key financial figures
2008 2008 2009
LFL CIS FX Total
Net sales 25,157 12,434 10,082 -11.2% -0.4% -7.3% -18.9%

Operating EBITDA 5,333 2,802 2,143 -14.4% -1.9% -7.2% -23.5%
Operating profit 3,360 1,964 1,306 -23.7% -3.0% -6.8% -33.5%
Net income 2,226 1,338 787 -33.9% -1.9% -5.4% -41.2%
Cash flow from
operating activities
3,703 664 805 38.1% -0.8% -16.1% 21.2%
6.27 3.73 1.88 -49.6%
6.99
2
EPS in CHF
1
Million CHF
6M +/-12M
1
Calculated on the weighted average number of shares outstanding retrospectively restated in accordance with IAS 33
2
Net of plant closure costs
9
Half-Year Results 2009© 2009 Holcim Ltd
Major changes in the scope of consolidation
Effective as at
– Egyptian Cement Company January 23, 2008
– Holcim Venezuela December 31, 2008
– Panamá Cement and Cementos Colón December 31, 2008
– United Cement Company of Nigeria April 1, 2009
+/– Various smaller companies
10
Half-Year Results 2009© 2009 Holcim Ltd
Exchange rates
Statement of income

average exchange rates in CHF
6M 07 6M 08 6M 09 +/-
1 EUR 1.63 1.60 1.50 -6.3%
1 GBP 2.42 2.06 1.69 -18.0%
1 USD 1.23 1.04 1.13 8.7%
1 LATAM Basket (MXN, BRL, ARS, CLP)
1
1.10 1.00 0.85 -15.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
1
1.11 1.00 0.90 -10.0%
Statement of financial position
exchange rates in CHF
30/06/08 31/12/08 30/06/09 +/-
1 EUR 1.61 1.49 1.52 2.0%
1 GBP 2.03 1.53 1.81 18.3%
1 USD 1.02 1.06 1.08 1.9%
1 LATAM Basket (MXN, BRL, ARS, CLP)
2
1.28 1.00 1.10 10.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
2
1.10 1.00 1.05 5.0%
1
Weighted by net sales 6M 2008
2
Weighted by net sales full year 2008
11
Half-Year Results 2009© 2009 Holcim Ltd
Cement – Sales volumes by region

Δ
6M 08/6M 09 LFL Change in
structure
Total
Europe -25.1% 1.1% -24.0%
North America -25.4% 0.0% -25.4%
Latin America -8.8% -9.4% -18.2%
Africa Middle East 2.1% -8.4% -6.3%
Asia Pacific 0.9% 0.9% 1.8%
Total -8.6% -1.6% -10.2%
5.0
6.7
7.5
13.0
17.1
16.8
34.1
33.5
32.5
4.54.8
7.9
11.2
12.9
13.7
Total Group
6M 2007 74.2
6M 2008 72.5
6M 2009 65.1
Million t
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Half-Year Results 2009© 2009 Holcim Ltd
Aggregates – Sales volumes by region
Δ
6M 08/6M 09 LFL Change in
structure
Total
Europe -25.7% 3.7% -22.0%
North America -28.2% 1.4% -26.8%
Latin America -4.5% -6.1% -10.6%
Africa Middle East 0.0% 0.0% 0.0%
Asia Pacific -13.0% 4.3% -8.7%
Total -23.8% 2.2% -21.6%
15.3
20.9
23.7
38.0
48.7
51.0
2.1
2.3
1.9
1.21.2
4.6
5.9
6.1
6.6
Total Group
6M 2007 87.3
6M 2008 79.7
6M 2009 62.5

Million t
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Half-Year Results 2009© 2009 Holcim Ltd
Ready-mix concrete and asphalt – Sales volumes
5.8
4.3
21.2
23.6
19.3
6.1
6M 2007 6M 2008 6M 2009
-25.9%
+11.3%
Ready-mix concrete in million m
3
Asphalt in million t
-18.2%
+2.4%
-4.9%
+0.0%
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Half-Year Results 2009© 2009 Holcim Ltd
10,082
12,434
13,002
6M 2007 6M 2008 6M 2009
Like-for-Like (LFL) 1,009 9.3% 1,051 8.2% -1,388 -11.2%
Change in structure 962 8.8% -395 -3.0% -52 -0.4%
FX movements 152 1.4% -1,224 -9.6% -912 -7.3%
Total change 2,123 19.5% -568 -4.4% -2,352 -18.9%

Net sales
Million CHF
15
Half-Year Results 2009© 2009 Holcim Ltd
Net sales by region
Δ
6M 08/6M 09 LFL Change in
structure
FX Total
Europe -23.9% 2.4% -8.5% -30.0%
North America -24.4% 0.3% 1.9% -22.2%
Latin America -1.2% -8.3% -9.0% -18.5%
Africa Middle East 2.0% -4.9% -2.3% -5.2%
Asia Pacific 9.2% 0.6% -10.1% -0.3%
Total -11.2% -0.4% -7.3% -18.9%
1445
1857
2253
1674
2053
1923
3603
5065
5144
1079
652
618
307930893083
6M 2007
6M 2008

6M 2009
Million CHF
16
Half-Year Results 2009© 2009 Holcim Ltd
North America
13.9%
Europe
34.5%
Asia Pacific
29.6%
Africa Middle East
5.9%
Latin America
16.1%
Net sales 6M 2009
Net sales by region
17
Half-Year Results 2009© 2009 Holcim Ltd
3,324
2,802
2,143
25.6%
22.5%
21.3%
21.7%
6M 2007 6M 2008 6M 2009
Margin
Like-for-Like (LFL) 340 12.5% -29 -0.9% -403 -14.4%
Change in structure 244 9.0% -210 -6.3% -54 -1.9%
FX movements 23 0.8% -283 -8.5% -202 -7.2%

Total change 607 22.3% -522 -15.7% -659 -23.5%
Operating EBITDA
Million CHF
1
Margin on a like-for-like basis
1
18
Half-Year Results 2009© 2009 Holcim Ltd
Operating EBITDA by region
Δ
6M 08/6M 09 LFL Change in
structure
FX Total
Europe -44.8% -0.1% -5.0% -49.9%
North America -57.3% 1.0% -1.0% -57.3%
Latin America 6.6% -8.4% -8.7% -10.5%
Africa Middle East -1.5% -6.3% -1.9% -9.7%
Asia Pacific 22.5% 0.5% -11.5% 11.5%
Total -14.4% -1.9% -7.2% -23.5%
85343
199
543
607608
559
1135
1115
186206
389
873
783

940
6M 2007
6M 2008
6M 2009
Million CHF
19
Half-Year Results 2009© 2009 Holcim Ltd
1,306
1,964
2,423
13.0%
15.8%
18.6%
13.6%
6M 2007 6M 2008 6M 2009
Like-for-Like (LFL) 307 15.8% -58 -2.4% -466 -23.7%
Change in structure 164 8.4% -205 -8.5% -59 -3.0%
FX movements 11 0.6% -196 -8.0% -133 -6.8%
Total change 482 24.8% -459 -18.9% -658 -33.5%
Operating profit
Margin
Million CHF
1
Margin on a like-for-like basis
1
20
Half-Year Results 2009© 2009 Holcim Ltd
Operating profit by region
445
495

487
224
798
815
158
178
350
670
561
699
Million CHF
-74
46
168
6M 2007
6M 2008
6M 2009
Δ
6M 08/6M 09 LFL Change in
structure
FX Total
Europe -68.5% -1.9% -1.5% -71.9%
North America -245.7% 0.0% -15.2% -260.9%
Latin America 6.7% -8.3% -8.5% -10.1%
Africa Middle East -3.4% -6.2% -1.6% -11.2%
Asia Pacific 31.6% 0.4% -12.6% 19.4%
Total -23.7% -3.0% -6.8% -33.5%
21
Half-Year Results 2009© 2009 Holcim Ltd
787

1,338
2,858
527
1,066
2,423
6M 2007 6M 2008 6M 2009
Net income
Net income - equity holders of Holcim Ltd
-53.2%
+195.1%
-50.6%
+162.7%
-41.2%
-56.0%
1
Including a capital gain on the sale of a stake in Holcim South Africa of CHF 1,110 million
and a special dividend of CHF 150 million, net
1
Net income
Million CHF
22
Half-Year Results 2009© 2009 Holcim Ltd
805
664
1,733
8.0%
5.3%
13.3%
6M 2007 6M 2008 6M 2009
Like-for-Like (LFL) 801 98.2% -908 -52.4% 253 38.1%

Change in structure 99 12.1% -115 -6.6% -5 -0.8%
FX movements 17 2.1% -46 -2.7% -107 -16.1%
Total change 917 112.4% -1,069 -61.7% 141 21.2%
Cash flow from operating activities
Million CHF
Margin
23
Half-Year Results 2009© 2009 Holcim Ltd
Cash flow statement
2008 2008 2009
Cash flow from operating activities 3,703 664 805 21.2%
Net investments to maintain productive
capacity and to secure competitiveness -1,104 -429 -111 -74.1%
Free cash flow 2,599 235 694 195.3%
Expansion investments -3,287 -1,283 -1,026 -20.0%
Financial investments net -1,084 -927 -580 -37.4%
Dividends paid -1,105 -1,004 -100 -90.0%
Financing requirement -2,877 -2,979 -1,012 -66.0%
Million CHF +/-
12M 6M
24
Half-Year Results 2009© 2009 Holcim Ltd
Financing
2008 2008 2009
Financing requirement -2,877 -2,979 -1,012 -66.0%
Share capital paid-in – – –
Capital paid-in by minority interests 2 1 –
Movements of treasury shares net -349 -5 -17
Increase in financial liabilities 4,119 3,093 702
Increase (or decrease) in cash and

cash equivalents 895 110 -327 -397.3%
Million CHF +/-
6M12M