exane bnp paribas 13th european seminar thomas aebischer cfo june 9th 2011 holcim ltd

© Holcim Ltd 2011
Exane BNP Paribas 13
th
European Seminar
Thomas Aebischer – CFO
June 9
th
, 2011
2
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Agenda
1
Risk management – core to our strategy
2
Talent – people make the difference
3
Growth – only with discipline will it create value
4
Conclusion
3
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Clear directives and managing risks are a core part of
strategy execution
• Holcim steadfastly applies
governance
 Essential to our model of global
standards & local management

 Manage risks and stay ahead of
the curve
• Clear and consistent global rules –
most valuable where law is weak
 Gain respect and build
reputation with our stakeholders
 Attract and retain the best talent
• Customer focus
 Allows undivided attention on
value creating activities
 Win business on reliability,
sustainability and values
Establish
Long term
Strategy
Execute
Strategy and
Manage Risks
Ensure
Compliance
with Policies
and Values
People
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© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Challenge Holcim’s Initiative Current status
•
Several existing and

proposed regulatory
standards on the industry
• National Emission
Standards for Hazardous
Air Pollutants (NESHAP) –
compliance required in
2013
• Initiated an asset renewal
strategy in 1996
• Invested more than $3
billion in new or refurbished
capacity
• Introduced state of the art,
cost and environmentally
efficient production
Staying “ahead of the curve” of regulation requires a proactive
view and defined corporate values – a competitive advantage
• Average kiln age of our
U.S. operations is 15 years
vs. >30 years for the
industry
• Leading performance on
energy, cost and emissions
• Competitive advantage
with forthcoming regulation
Asset renewal timeline – Holcim (US)
1996 2000 2001 2002 2003 2009 2009 2009 2011
Mothball
Catskill
plant

Camden and
Birmingham
Mothball
Artesia
and Mason
City plants
Ste.
Genevieve
greenfield
Expansion
of Portland
plant
Close
Clarksville
and
Dundee
plants
Expansion
of Devil's
Slide plant
Expansion
of
Midlothian
plant
Expansion
of Holly
Hill plant
Plant renewal, expansion and rationalization
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© Holcim Ltd 2011

June 9, 2011
Exane BNP Paribas 13th European Seminar
Challenge Holcim’s Initiative Current status
•
Resource management
and project execution
• Market demand of 212 mt
growing at 8 – 10% p.a.
• 75% of limestone reserves
centered in four states
• Increasing coal costs,
wages and limited railcars
• Added approximately 13 mt
in cement capacity since
2008
• Centered in areas with
long-term reserves
• Water, land and resource
management initiatives
Managing risk and being a valued member of the
community is how to execute on growth
• Positioned strategically
• Introduced blended
cements
• Hub and spoke strategy
• Captive power plants
• Conservation of non-
renewable resources
Nationwide presence – capturing growth opportunities
Chand

rapur
Bath
inda
Ro
pa
r
Darla
ghat
P
a
li
W
a
di
Maduk
karai
Lak
her
i
Ky
mor
e
Ja
m
ul
Bar
gar
h
G
ag

al
Cha
nda
Tik
ari
a
Si
nd
ri
Bhata
para
Sankrail
Damodar
Sindri
Tikaria
Chanda
Gagal
Bargarh
Jamul
Kymore
Lakheri
Madukkarai
Wadi
Rabriyawas
Darlaghat
Kodinar
Ropar
Bathinda
Chandrapur
Bhatapara

Mumbai
Farakka
Chaibasa
Integrated Plant
Grinding Station
Import Terminal
ACC
ACL
Integrated Plant
Grinding Station
Import Terminal
ACC
ACL
Product flows
Sanand
Surat
Roorkee
Dadri
Nalagarh
Indicates
limestone cluster
Chand
rapur
Bath
inda
Ro
pa
r
Darla
ghat

P
a
li
W
a
di
Maduk
karai
Lak
her
i
Ky
mor
e
Ja
m
ul
Bar
gar
h
G
ag
al
Cha
nda
Tik
ari
a
Si
nd

ri
Bhata
para
Sankrail
Damodar
Sindri
Tikaria
Chanda
Gagal
Bargarh
Jamul
Kymore
Lakheri
Madukkarai
Wadi
Rabriyawas
Darlaghat
Kodinar
Ropar
Bathinda
Chandrapur
Bhatapara
Mumbai
Chaibasa
Sanand
Surat
Roorkee
Dadri
Nalagarh
6

© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
2%
4%
6%
8%
10%
12%
14%
90 … 00 … 07 08 09 10
Thermal substitution rate by alternative fuels
60%
65%
70%
75%
80%
85%
90%
90 … 00 … 07 08 09 10
Clinker factor
Quarrying and raw
material preparation
Clinker
production
Cement grinding and
distribution
Thermal fuel initiatives continue to focus on the reduction
of energy intensity and optimization of fuel mix
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© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
The energy cost evolution demonstrates our success in
managing the volatility of fuel and electricity costs
0
5
10
15
20
25
0
50
100
150
200
250
Electricity expenses
Fuel expenses
Total energy expenses
In CHF per tonne cement produced
Crude Oil-Brent per FOB
1
USD / BBL
WEFA Steam Coal ARA index USD /Metric t
Crude Oil
*
Energy expenses stated quarterly
1
Free on board - shipping point (excluding freight cost)

Coal
2005 2006
20092007 2008
2010 2011
8
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Agenda
1
Risk management – core to our strategy
2
Talent – people make the difference
3
Growth – only with discipline will it create value
4
Conclusion
9
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Talent – Ensure we have the best people in the right jobs
• Attract the best talent and promote from within
• Hire for attitude and leverage diversity to maximize potential
• Provide constructive quality feedback
• Invest in training, leadership and management education
• Active succession planning enhances performance
Strength. Performance. Passion.
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© Holcim Ltd 2011

June 9, 2011
Exane BNP Paribas 13th European Seminar
Holcim
programs &
focused
development
Leadership / management
development
Functional & organizational
performance improvement training
Basic vocational & new graduate training (IT,
English, safety, leadership & personal effectiveness
New talent
Selection, recruitment
and induction
Talent management and
development
• Technical training focuses on building expertise based on
operational performance indicators
• Leadership and training modules focus on practical business
impact on the performance of the middle manager
The Holcim Academy is a model for how to identify and
develop skills that impact the business
Retention
11
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
The management of talent potential translates into
performance

• A formal process of succession management creates a
supply of the best people for key roles
• Ongoing management task to develop talent
• Renewal of senior management level in the last three years
• Over 20 new local top-level executives appointed in the last
18 months
• Succession planning for senior management positions is a
regular Board agenda item
12
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
1997: Process Engineer
Cement Australia
2001: Technical Manager
Narogong.
2007: Holcim Academy
Technical Training Head
2009: Holcim Academy
Head
2011: Regional Learning &
Development Manager
Zai Zainuddin
• Established the Holcim Academy which has three pillars:
Learning & Development, Organizational Performance
Improvement and Talent Management
Holcim Indonesia has demonstrated that targeted
leadership development has a direct link on performance
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© Holcim Ltd 2011

June 9, 2011
Exane BNP Paribas 13th European Seminar
Agenda
1
Risk management – core to our strategy
2
Talent – people make the difference
3
Growth – only with discipline will it create value
4
Conclusion
14
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
As in previous growth cycles, commodities lead to products
and services demand resulting in housing and construction
Building materials sector growth
Demand for
Energy, Mining
and Oil
Demand for
Capital Goods
and Equipment
Demand for
Retail Products
and Services
Demand for
Housing and
Construction

Commodities
Boom
Manufacturing
Growth
Consumer and
Banking
Expansion
Heavy and
Lightside
Building
Materials
Time
15
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Long term growth in the building materials is certain as
construction will outpace world GDP in the next decade
• We expect global construction to grow by 67% from $7.2
trillion today to $12 trillion in 2020
• Growth in China, India and the US will generate 54% of the
$4.8 trillion increase in global construction output
• Emerging markets will account for 55% of global construction
(46% today)
• $100 trillion will be spent on construction globally during the
next decade
• By 2020 construction will account for 13.2% of world GDP
(11% today) @ growth rate of 5.2% per annum
Sources: Oxford Economics, March 2011 Photo: Proposed Beijing Z15 supertall skyscraper
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© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Our expansion program has created a growth portfolio of
highly efficient, low-cost, environmentally friendly capacity
Capacity expansions*
Completed
Under construction or planned
* As per end of April 2011
21.7 million of additional cement capacity has come on stream
since 2008. Further 7.8 million tonnes by 2013.
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© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Holcim investment criteria – rigorous investment analysis
and discipline is a success factor
Product Focus
Geographic
Diversification
Local Management
Global Standards
• Strategic fit
• Position taking in line
with maturity profile of
the respective market
• Networking possibilities
and partnerships
• GDP growth
• Favourable demographics

• Deficit markets
• Substantial market share
• Networking
• Management and
manpower resources
• Resource management
• Local culture
embedment
Financials
• Value creation
• Financing in line with
Holcim policy
• Investment scorecard
• Accountability
18
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Agenda
1
Risk management – core to our strategy
2
Talent – people make the difference
3
Growth – only with discipline will it create value
4
Conclusion
19
© Holcim Ltd 2011
June 9, 2011

Exane BNP Paribas 13th European Seminar
Conclusions
• Clear directives and managing risk are a core part of our
strategy execution
 Win customers and business based on reliability,
sustainability, trust and values
 Clear and consistent global standards are a competitive
advantage
 Targeted leadership development has a direct link to
performance
 Attracting and managing the best talent makes the difference
• We are uniquely positioned for global construction dynamics
 We have the motivated teams of people and financial means
to execute on potential projects and opportunities
 The decision to Greenfield or make acquisitions is one of:
timing – capability – opportunity
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© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Disclaimer
Cautionary statement regarding forward-looking statements
This presentation may contain certain forward-looking statements
relating to the Group’s future business, development and economic
performance.
Such statements may be subject to a number of risks, uncertainties
and other important factors, such as but not limited to (1) competitive
pressures; (2) legislative and regulatory developments; (3) global,
macroeconomic and political trends; (4) fluctuations in currency
exchange rates and general financial market conditions; (5) delay or

inability in obtaining approvals from authorities; (6) technical
developments; (7) litigation; (8) adverse publicity and news
coverage, which could cause actual development and results to differ
materially from the statements made in this presentation. Holcim
assumes no obligation to update or alter forward-looking statements
whether as a result of new information, future events or otherwise.
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© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
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
August 18, 2011 Half-year results for 2011
November 9, 2011 Press and analyst conference for
the third quarter 2011
February 29, 2012 Press and analyst conference on
annual results for 2011
April 17, 2012 General meeting of shareholders
May 9, 2012 Results for the first quarter 2012
Contact information and event calendar

22
© Holcim Ltd 2011
June 9, 2011
Exane BNP Paribas 13th European Seminar
Strength. Performance. Passion.