holcim in latin america andreas leu member of the executive committee 2012 holicim ltd

Strength. Performance. Passion.
© 2012 Holcim Ltd
Holcim in Latin America
Andreas Leu, Member of the Executive Committee
© 2012 Holcim Ltd
© 2012 Holcim Ltd
Agenda
Latin America from a Macroeconomic Perspective 3
Holcim in Latin America 16
- A Rich History 16
- A Promising Future 31
Concluding Remarks 40
Investor and Analyst Day 2012
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© 2012 Holcim Ltd
Mexico
Guatemala
Honduras
Costa Rica
El Salvador
Nicaragua
Panama
Ecuador
Colombia
Chile
Peru
Venezuela
Guayanas
Brazil
Argentina
Uruguay

Paraguay
Bolivia
Cuba
Haiti/ Dom.Rep.
Puerto Rico
Jamaica
~8‘000 km
~10‘700 km
Latin America, a large region…
Latin America covers an
area of around 21 Mio km
2
Argentina accounts for
roughly 13% of Latin America
in terms of size and is roughly
16% smaller than India

Brazil accounts for roughly
40% of Latin America in
terms of size and is nearly
12% larger than Australia
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© 2012 Holcim Ltd
…with a young and growing population…
40.8 Mio people
196.7 Mio people
114.8 Mio people
17.3 Mio people
29.4 Mio people

46.9 Mio people
Buenos Aires (13.4 Mio)
Bogota (8.5 Mio)
Lima (9.0 Mio)
Mexico D.F. (20.1 Mio)
Rio de Janeiro (11.9 Mio)
Sao Paulo (19.7 Mio)
Santiago (6.0 Mio)
Belo Horizonte (5.4 Mio)
Caracas (5.0 Mio)
Source: : BMI Country Business Forecast 3Q12, United Nations World Urbanization Prospects report (data: 2011)
0
100
200
300
400
500
600
700
2011 2020E
< 25 years old > 25 years old
327 384
268 267
• An increasing number of people
is entering the middle class
• The continued strong youth base
offers future growth
Mio people
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© 2012 Holcim Ltd
0
3000
6000
9000
12000
15000
18000
0
2000
4000
6000
8000
10000
12000
2011 2020E
GDP nominal GDP per capita (rhs)
…and income power development potential…
10’076 USD p.c.
12’577 USD p.c.
10’059 USD p.c.
10’771 USD p.c.
4’080 USD p.c.
5’108 USD p.c.
Source: : BMI Country Business Forecast 3Q12 (data: 2011)
USD bn USD
• CAGR GDP nominal: 7.9%
• CAGR GDP per capita: 6.8%
9’638
17’415

5’738 11’330
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© 2012 Holcim Ltd
…with many similarities…
• 3 regional commercial blocks
• 2 main languages
• 1 main religion
• 91% literacy
• 79% urbanization
Trade areas
Mercosur (Mercado Común del
Sur)
CAN (Comunidad Andina)
APEC (Asia-Pacific Economic
Cooperation
NAFTA (North America
Free Trade Agreement)
SICA (Sistema de la Integración
Centro Americana
Source: WDI (2010/11 data)
Main Free Trade Agreements
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© 2012 Holcim Ltd
Rich ethnic (> 500 indigenous languages) & cultural diversity
… but more diverse than often perceived abroad
Source: Wikipedia, Google images
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© 2012 Holcim Ltd
Weather, biodiversity & natural resources
…but more diverse than often perceived abroad
Source: Wikipedia, Google images
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© 2012 Holcim Ltd
Political orientation, social & economic
stability/development, security, trade partners, etc.
…but more diverse than often perceived abroad
Source: Wikipedia, Google images
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© 2012 Holcim Ltd
However, a common need for infrastructure and housing,
Source: CEPAL & internal estimates.
Country Project
Panama Canal expansion
Peru/Brazil HW Peru-Brazil
Peru Port Tacna
Brazil Port Açu
Brazil Dam Monte Belo
Paraguay Aluminium plant
Chile Casela
Chile Dam Castilla
8
12
13
14
15

20
25
Examples of announced infrastructure projects
26
x
x
Projects < USD 3.5 bn
Projects > USD 3.5 bn
Roughly USD 300 bn housing deficit (~ 18.5 million
units) and more than USD 160 bn announced
infrastructure projects to be executed until 2020
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© 2012 Holcim Ltd
which results in sustainable cement demand growth,
Source: Global Cement Review & internal estimates
Latin America generates roughly 8% of the global GDP while consuming some 5% of global cement production
26
39
60
95
21
30
33
46
6
11
13
5
9

17
8
12
7
9
13
10
11
19
25
0
50
100
150
200
250
1990 2000 2010 FC 2020
Mio tonnes
Brasil Mexico Argentina Colombia Peru Central America Others
3.7% CAGR 3.9% CAGR 4.0% CAGR
Bag ratio
73-90%
50-90%
85%
74%
62%
84%
69%
Brazil
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© 2012 Holcim Ltd
today led by Brazil and Mexico, …
Bubbles size according to 2011 national cement demand estimates
Source: Global Cement Review & internal estimates
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~ 65 Mio t
~ 10 Mio t
~ 34 Mio t
~ 13 Mio t
~ 9 Mio t
© 2012 Holcim Ltd
which together with the rest of Latin America will drive
future cement demand
Bubbles size according to 2020 national cement demand estimates
Source: Global Cement Review & internal estimates
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~ 95 Mio t
~ 48 Mio t
~ 17 Mio t
~ 12 Mio t
~ 13 Mio t
© 2012 Holcim Ltd
Agenda
Latin America from a Macroeconomic Perspective 3
Holcim in Latin America 16
- A Rich History 16
- A Promising Future 31

Concluding Remarks 40
Investor and Analyst Day 2012
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© 2012 Holcim Ltd
Agenda
Latin America from a Macroeconomic Perspective 3
Holcim in Latin America 16
- A Rich History 16
- A Promising Future 31
Concluding Remarks 40
Investor and Analyst Day 2012
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© 2012 Holcim Ltd
Holcim has build its current leading strategic footprint over
the last 60 years
• 1953 Brazil
• 1964 Mexico
• 1969 Colombia
• 1970 Costa Rica
• 1975 Chile
• 1976 Ecuador
• 1993 Argentina
• 1997 Nicaragua
• 1998 El Salvador

Bubbles size according to 2020 national cement demand estimates
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Indicates Holcim country presence
© 2012 Holcim Ltd

Investing in its people
LatAm Maintenance course
40
th
Global CEM manufacturing
conference
LatAm CAPEX project management
course
• Training at all levels of the company
• More than 90% of employees enrolled in formal training
• 355’476 hours spent on training in 2011
• Implementation of insurance and pension schemes
• Short and long term transfers
• personal and professional in-house development
• region and Group performance improvement through
knowledge sharing and spread of best practice


Sustainably maintaining Holcim’s image as a preferred
employer who rarely loses talent to the competition or other
industries.
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© 2012 Holcim Ltd
• “I am grateful to Holcim because they trusted me and gave me the opportunities, which
allowed me to grow personally and professionally thereby supporting me all the way ”.
Plant Manager of Holcim Argentina.
• “During the 19 years of my professional journey , The Group has offered me many
development opportunities … with special emphasis in sustainable management and
delivering on our promises to all our stakeholders”.

Commercial Director of Holcim Argentina.
• “Besides the enriching personal and professional experience within the Group, the
opportunities offered by Holcim rewarded me with a number of external acknowledgments”.
General Director of Holcim Nicaragua, “Entrepreneur Woman of the Year for the Construction Industry” and “Extraordinary Services Provider to
the Central America Construction Industry”, awarded in 2011.
Developing strong professional and local teams
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© 2012 Holcim Ltd
• “After 17 years of journey, interacting with colleagues, customers, communities and
institutions, I got a broad view of our business and developed skills that today allow me to
handle different challenges. I am still convinced that Holcim is the company I want to
continue to be part of”.
Plant Manager of Holcim Costa Rica

• “Over the last 9 years I lived many enriching experiences, developing personal and
professionally but also accompanying Holcim Colombia on its way to a business leader
and recognized role model in our industry”.
RMX Plant Manager of Holcim Colombia



Developing strong professionals and local teams
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© 2012 Holcim Ltd
Adapting its organization according to evolving needs
2004 2005 2006 2007 2008 2009 2010 2011 2012 …
Regional Procurement Organization (Americas)
CEM RMSO

Regional HR Director
Head Commercial Projects
Head Financial Projects
2003 2002
2001
IT SSC (region)
Regional CSR Coordinator
AGG & RMX Regional Management Support Organization (RMSO)
IT Shared Service Center (SCC)
( 3 countries)
IT (+ 2 countries)
IT (+ 3 countries)
IT (+ 1 country)
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© 2012 Holcim Ltd

• Becoming a long term business partner,
Retail entrepreneurs Self-builders & masons
Affordable housing developers
Suppliers development
(business model seminar)
Sustainably developing through fit for purpose solutions
Holcim has proven its ability to adapt to local conditions,
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© 2012 Holcim Ltd
Sustainably developing through fit for purpose solutions
Holcim has proven its ability to adapt to local conditions,
• …

• with service excellence & innovation,

Los Bronces - Chile
Estadio Maracanã - Brazil Bogota Airport - Colombia
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© 2012 Holcim Ltd
Sustainably developing through fit for purpose solutions
Holcim has proven its ability to adapt to local conditions,
• …
• while allocating funds to capture growth opportunities,

Nobsa
Hermosillo
Barroso
Guayaquil
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© 2012 Holcim Ltd
Sustainably developing through fit for purpose solutions
Holcim has proven its ability to adapt to local conditions,
• …
• continuously working on efficiency improvements,

Bogiflex – Argentina /
Ecuador
Cement drive (mill) – Ecuador /
HGRS
Holcim Cement performance
radar

Alternative Fuels & Raw materials
businesses in 8 countries
Investor and Analyst Day 2012
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© 2012 Holcim Ltd
Sustainably developing through fit for purpose solutions
Holcim has proven its ability to adapt to local conditions,
• …
• and establishing itself as a good neighbor in the community

‘’Construyendo Juntos’ – Costa Rica ‘Aférrate a tu línea de vida’ - Colombia ‘Educación para todos’
- Ecuador
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