region north america benoit h koch executive committee north america st louis september 14 2010 holcim ltd

© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Region North America
Benoît-H. Koch – Executive Committee North America
St. Louis, September 14, 2010
2
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Executive Summary Region North America
• North America and the US in particular continues to be important in
economic terms and for Holcim due to its sheer size and growth
prospects
• Holcim has over many years invested in a flexible and efficient
asset base that will allow it to capitalize on the recovery
• We have consistently executed our strategy in North America
before, during and after the recession
• We are organized to best meet the market demands in vastly
different markets across Canada and the US allowing for integrated
solution offerings where needed
• Synergies have and continue to be achieved in North America by
optimizing organizational structures, shared service centers and tax
efficient structures
3
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Agenda
1
The importance of North America
2
Our North American portfolio and
major recent acquisitions

3
How we are reaping the benefits of these acquisitions
4
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
The US remains the country with the largest economy – its GDP is
higher than Japan, China and Germany combined
GDPs of US States vs. Nations Worldwide [base year 2007]2009 GDP Comparison [bn USD]
Source: World Bank and IMF
14’256
5’068
3’347
1’336
Source: MatadorNetwork
12’456
4’909
US GDP is expected to grow by 4.3% (CAGR 2010 – 2014)
5
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
North America will maintain its high population growth, increasing the
need for housing & infrastructure ultimately driving cement demand
-1 %
0 %
1 %
2 %
0,9
0,0
1,1
0,6

-0,2
0,7
2020-25
0,7
-0,1
0,9
2015-20
0,8
0,0
1,0
2010-15
North America
Europe
World
2045-50
0,4
-0,3
0,3
2040-45
0,4
-0,2
0,4
2035-40
0,5
-0,2
0,5
2030-35
0,5
-0,2
0,6

2025-30
Increase of North American Population by +10% from 2010 to 2020
Forecasted Population Growth 2010-2015 [CAGR]
Source: UNData - United Nations Data Retrieval System (Medium Variant)
6
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
US Cement Demand Forecasts [M t cem]
Despite a notably lower Summer Forecast, PCA is still predicting a
steady recovery of cement demand over the next 5 years
80
71
200820072006
127
84
2015
120
2014201320122009 2010
100
120
60
2011
0
40
20
140
+16%
+2%
+19%
+71%

-45%
+14%
PCA 2008 Summer FC
PCA 2007 Fall FC
PCA 2010 Spring FC
PCA 2009 Fall FC
PCA 2009 Summer FC
PCA 2010 Summer FC
Source: Portland Cement Association (PCA)
7
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
North America is crucial to Holcim’s geographic diversification
strategy – this is true for the cement segment…
Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010
Cumulated population
growth 2010 - 2014E
Demand
growth
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
2% 3% 4% 5% 6% 7% 8% 9% 10% 11%
Western

Europe
26.8 Mt
Eastern
Europe
24.3 Mt
Africa
Middle East
27.2 Mt
North
America
20.6 Mt
India
50.7 Mt
China
51.0 Mt
Asia Pacific excl.
India, Australia, China
46.9 Mt
Latin
America
34.2 Mt
Australia
4.5 Mt
Mature markets Emerging markets
Size of circles represents influenced capacity 2009
GDP per capita (at PPP) CAGR 2010 - 2014E
8
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
… as well as for the Aggregates segment, where the developed

countries have a higher weight
Western Europe
70.0 Mt
North
America
40.2 Mt
1
including 3 months Australia
Sources: Holcim, US Census Bureau, Datastream - Economist Intelligence Unit, February 2010
GDP per capita (at PPP) CAGR 2010 - 2014E
Cumulated population
growth 2010 - 2014E
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
2% 3% 4% 5% 6% 7% 8% 9% 10% 11%
Western Europe
70.0 Mt
Africa
Middle East
2.6 Mt
North
America
40.2 Mt

Asia
10.4 Mt
1
Eastern
Europe
8.4 Mt
Mature markets Emerging markets
Size of circles represents consolidated sales volume 2009
Latin
America
11.8 Mt
Demand
growth
9
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Agenda
1
The importance of North America
2
Our North American portfolio and
major recent acquisitions
3
How we are reaping the benefits of these acquisitions
10
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
The extensive network of plants, terminals, quarries and pits will allow
Holcim to participate in the recovery of demand
PCA Forecasted Cement Demand Growth

[CAGR 2009-15]
Source: PCA US State Forecast Summer 2010 (Aug 2010), PCA Canadian Summer 2010 Forecast (Aug 2010)

Cement Plant

Mothballed Cement Plant
z
Cement Terminal
S
Aggregates Quarry/Pit
lgdXArC
o
0.0% to 2.5%
lgdXArC
o
2.5% to 5.0%
lgdXArC
o
5.0% to 7.5%
lgdXArC
o
7.5% to 10.0%
lgdXArC
o
10.0% to 12.5%
lgdXArC
o
12.5% to 15.0%
lgdXArC
o

15.0% to 17.5%
z
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S
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SS
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
Catskill
Holly Hill
Theodore
Trident
Ada
Midlothian
Portland
Devil's Slide
Hagerstown
Joliette
Mississauga
Ste. Genevieve
Recently inaugurated
Ste. Genevieve plant can
serve most of the markets
along the Mississippi in a
cost effective way
11
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Holcim has continuously developed its positions in North America since
its first cement investments in the 1950s
1958 - First US venture:
Dundee Cement Company
1953 – First foothold in NA:
St. Lawrence Cement in Canada

1978 – Acquisition of Santee
Portland Cement Comp
1990 – Acquisition of Northwestern States Portland
Cement Corp. and United Cement Comp.
1986 – Acquisition of Ideal Basic
Industries
2005 – Acquisition of
Aggregate Industries
2007 – Acquisition of
Hardaway Concrete
2006 – Acquisition
of Meyer Materials
2010: Inauguration of
Ste. Genevieve plant
2007 - buyout of St. Lawrence
Cement minority shareholders
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
2007 – Long Term Supply Contract with
& Minority stake in Lattimore Materials
Mid 90ies – Various larger upgrade &
improvements of existing facilities
12
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Major acquisitions over the last 5 years in the US, provided Holcim the
required base for the implementation of its twin-leg strategy
Meyer Materials (2006):
RMX: 25 Plants
Agg: 6 Operations, 94M t reserves*
Other: 1 Concrete Paving Plant

Hardaway Concrete (2007):
RMX: 10 Plants, 2 mobile plants

Cement Plant

Mothballed Cement Plant
S
Agg Operation
Aggregate Industries (2005):
RMX: 96 Plants
Agg: 77 Operations, 2’280M t reserves*
Other: 43 Asphalt Plants
Lattimore Minority Stake
& Long Term Supply Contract (2007):
RMX: 21 Plants
Agg: 6 Operations
Holcim’s main Acquisition in N.A. in the last 5 years
* Current status of permitted reserves
13
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Agenda
1
The importance of North America
2
Our North American portfolio and
major recent acquisitions
3
How we are reaping the benefits of these acquisitions
14

© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
With the twin-leg strategy, Holcim also diversified its product portfolio,
moved closer to the end customer and became a true solution provider
To best leverage the twin-leg strategy, Holcim tailored its organizations to
the respective markets, which are different in the US and in Canada
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

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)
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
Infrastructure
Commercial /
Industrial
Building
Housing
Demand
A
p
p
l
i
c
a
t
i
o
n
s
Applications and
Construction Fields
Holcim Value Chain
15

© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
An experienced and crisis-proven North American Management team
ensures that we deliver on our promise
Bernard Terver – Area Manager US & CEO Holcim US
Former positions: - Area Manager Andes Nations, Central America & Caribbean
- CEO Holcim Colombia
Will Glusac – CEO Aggregate Industries US
Former Positions: - President Prairie Material
- President Florida Materials Division, Rinker Materials
Paul Ostrander – CEO Holcim Canada
Former Positions: - Senior Vice President Ontario Division, Holcim Canada
- General Manager Dufferin Construction
16
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
US Area Management Structure allows synergies to be captured
while maintaining strong & entrepreneurial local management
Structure
CEO
HOLCIM US
B. Terver
Mid Atlandic Region
Western Region
North Region
South Region
• Allows different business models in
cement and ACM to match current
geographic set-up and market structures
in US

• Maintains the required degree of
entrepreneurial spirit and freedom in the
companies. This ensures strong local
management which is an integral part of
Holcim’s strategy
• Area Manager and his staff coordinate
the companies and ensures that back
office synergies are being used
• Possibility to capture synergies from
tailored service integration
• Coordination and arbitrage by Area
Manager and his staff
Comments
CEO
Aggregate Industries US
W. Glusac
Midwest Region
Nort East Region
EXCO Member
B-H. Koch
Area Manager US
B. Terver
17
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
In Canada on the other hand, industry structure and geographic
concentration of operations require a single integrated company
Structure
• Market & HCA (Holcim Canada)
operations geographically more

concentrated in Canada than in the US
• Higher degree of vertical integration
than in the US
• Higher degree of consolidation on all
product levels than in the US
• Regional structure under one VP allows
the optimization of vertical integration
strategy
Comments
VP Ontario & Western Region
VP Quebec & Atlantic Region
EXCO Member
B-H. Koch
CEO
HOLCIM Canada
P. Ostrander
18
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Aggregates has proved to be more resilient to the downturn than the
cement business
2006 2007 2008 2009
Factors contributing to a higher crisis resilience of Aggregates compared to Cement:
• More flexible cost structure
• Shorter reaction time
• Benefitting more from stimulus road & highway projects
100%
104%
72%
-13%

32%
28%
US Aggregates
US Cement
-10%
0%
Development of operating profit Holcim US Cement vs. Aggregates (year 2000 = 100%)
19
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
The buyout of Holcim Canada* minority shareholders allowed to get full
strategic freedom and to streamline NA operations
The full ownership of Holcim Canada (HCA) allowed to substantially
reduce costs in North America, through:
 Integration of HCA’s US operations into Holcim US
 Further centralization of Support Services between HCA and
Holcim US
 Process standardization across HCA and HUS
 Tax efficiency gains
 Avoidance of costs for SLC* being a public company
 Integrated North American market strategy
Through the buyout of SLC* minorities, Holcim was able to realize
sustainable synergies of USD 24M p.a.
* Former company name: St. Lawrence Cement (SLC)
20
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
An increasing number of support processes of our North American
(NA) organizations have been standardized and centralized
Pooling of NA shared services resulted so far in cost reductions of

USD 13.3M p.a., and the full potential hasn’t been reached yet
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
AIUS
HUS
HCA
Accounting
HUS
HCA
AIUS
IT Service Centre
HUS
HCA
AIUS
Treasury
HUS
HCA
AIUS
Procurement
HUS
HCA
AIUS
Risk Management
HUS
HCA
AIUS
Payroll
HUS
HCA
AIUS
Tax

Merger of Service Centres Across Operating Companies
Separate Service Centre HUS = Holcim US
HCA = Holcim Canada
AIUS = Aggregates Industries US (acquired in 2005)
21
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Outlook
• Our lean North American businesses have reached the required
level of flexibility to deal with any market situation
• Production volumes can be increased quickly, whilst keeping the
current low cost levels
• The recovery of the North American economy is therefore expected
to result in above average returns
22
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Contact information
Bernhard A. Fuchs
Marco Knuchel
Binit Sanghvi
Investor Relations
Phone +41 58 858 87 87
Fax +41 58 858 80 09

www.holcim.com/investors
Mailing list:
www.holcim.com/subscribe
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© Holcim Ltd 2010

Investor / Analyst Capital Markets Event 2010
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.
As part of Holcim's global commitment to compliance with competition laws,
please note that this presentation has been comprehensively reviewed by
counsel in both the United States and Switzerland.
24
© Holcim Ltd 2010
Investor / Analyst Capital Markets Event 2010
Strength. Performance. Passion.