results 2011 and outlook presentation of february 29 2012 holcim ltd

Results 2011 and Outlook
First cement plant in Holderbank (Switzerland)
© 2012 Holcim Ltd/Switzerland
Presentation

of

February

29,

2012
The spoken word prevails.
Holcim at a glance
 Growth in most of the emerging markets, but subdued building
activity in many mature markets
 Higher sales volumes in cement, aggregates and ready-mix
concrete with significant volume increases and higher operating
EBITDA in the 4
th
quarter
 Increasing costs for raw materials, energy and transport as well
as the strong Swiss franc impacted operating result
 Holcim achieved higher turnover and stable operating EBITDA
like-for-like
 Non-cash impairments impacted net income
 Proposal for a cash payout from capital reserves of CHF 1.00
per registered share (2010: 1.50)
1
© 2012Holcim Ltd/Switzerland
Financialresults2011

1) 2011 was a year in which the global economy moved at two different speeds. Whereas the emergin
g
markets of Asia and Latin America remained on a solid growth trajectory, the construction economy in t
he
industrialized nations was subdued. Holcim increased sales of cement, aggregates and ready-mix
concrete,
and in all four large Group regions. The biggest increase was in aggregates. Holcim reported higher vo
lumes
of cement and aggregates above all in Latin America and Asia. The rise in sales of ready-mix concrete
in
North America was particularly strong as a result of acquisitions. Performance was very positive in the
fourth
quarter with respect to both volumes and the operating result. In many markets, strong competition me
ant
that inflation-related cost increases, in particular for raw materials, energy and transport, could not yet
be
fully passed on to selling prices. A further factor was the strong Swiss franc, which also had a negative
impact on the consolidated financial statements. On a like-for-like basis Holcim achieved higher
turnover,
with operating EBITDA at last year's level. And in the fourth quarter of 2011, like-for-like operating
EBITDA
was up by as much as 15 percent year-on-year. However, the non-cash impairments announced back
in
January – and Thomas Aebischer will go into more detail on these in his commentary – had the effect
of
reducing Group net income by 775 million francs. Nonetheless, the Board of Directors is proposing a c
ash
distribution of one franc per registered share from the capital contribution reserves.
Positive volume development in Europe
 Debt crisis dampened economic recovery in the

building industry
 Higher sales of cement, aggregates and ready-mix concrete
 Restructuring and plant closures in Italy, Spain and Eastern
Europe
 Start-up of the Shurovo plant in Russia and first clinker
production at the Garadagh plant in Azerbaijan
 Strong Swiss franc, higher costs and lower receipts from the
sale of CO2 certificates impacted result
 Non-cash impairments in Spain and Eastern Europe
2
© 2012Holcim Ltd/Switzerland
Financialresults2011
2) In 2011, the economies of the Western European countries in which Holcim is present performed
reasonably, with the exception of Italy and Spain. Within the EU, however, the debt crisis weighed on th
e
economic recovery as the year progressed, unsettling many investors. In Eastern Europe, many
governments were forced to resort to drastic cost-cutting measures. Economic recovery remained
strong in
Switzerland, Russia and Azerbaijan. Holcim sold more cement, aggregates and ready-mix concrete in
Group
region Europe. Only in the area of asphalt did we experience a decline. In order to align Group capacit
y with
anticipated demand, Holcim took the decision to discontinue certain operations – in Italy and Spain in
particular, but also in Eastern Europe – in all segments. This was in stark contrast to the growth market
s:
One of the most modern cement plants commenced operations in Shuruvo, in Russia, primarily servin
g the
booming market of Moscow. Shortly before the end of the year, Holcim also produced the first clinker at
a
new kiln line at the Garadagh plant in Azerbaijan. The strong Swiss franc, higher costs for energy and

transport, lower receipts from the sale of CO2 emission certificates, and the difficulty of adjusting prices
to
cost inflation in a difficult competitive environment all had an impact on the operating result. In addition,
the
non-cash impairments affecting fixed assets and goodwill in Spain and Eastern Europe also weighed
on the
Group result.
2
Slight recovery tendencies in North America
 Slightly better economic performance in the US and moderate
development in Canada
 Higher sales volumes in all segments – supported by
acquisitions in the field of aggregates and ready-mix concrete
 Strong Swiss franc and higher production and distribution costs
led to a lower operating EBITDA
 The Catskill and Artesia plants were permanently closed in the
4
th
quarter, resulting in non-cash impairments
3
© 2012Holcim Ltd/Switzerland
Financialresults2011
3) Although the US economy grew slightly, particularly in the second half of 2011, the construction eco
nomy
did not really get going due to spending cuts in the public sector. In Canada, the economy weakened a
bit
following a strong previous year; in this country too a number of cement-intensive infrastructure
projects
were postponed. Holcim US increased its cement sales, with monthly deliveries in the second half of t
he

year exceeding the million-tonne mark on two occasions. Not since October 2008 had this level of
sales
been achieved. Holcim Canada recorded lower exports to the north-east of the US, which accounts for
the
decline in cement deliveries. Aggregate Industries US posted a significant volume increase in aggrega
tes
and ready-mix concrete, which is largely attributable to the full takeover of Lattimore Materials in Texas
in the
first quarter of 2011, and the acquisition of Ennstone in Virginia in October of the year under review. Sa
les of
asphalt rose slightly despite a decline in street repair activity. Holcim Canada was able to significantly
increase its sales of aggregates in the second half of the year, with ready-mix concrete sales close to
the
previous year's level. Operating EBITDA for Group region North America declined significantly. This w
as
attributable to negative currency effects, continued weak demand, and higher production and distributi
on
costs that could not be fully offset despite slight price adjustments. As demand for construction materia
ls in
the US will only recover slowly, non-cash impairments on fixed assets were booked in the fourth
quarter of
2011. These relate to the permanent closure of the Catskill and Artesia plants of Holcim US.
Solid economic development in Latin America

Lively construction activity in most countries and increased
cement demand

Higher sales volumes in all segments and a strong rise in the
aggregates segment


In Ecuador, capacity expansion was concluded and decision
taken to build a new kiln line in Brazil

Despite higher costs for energy and transport, operating
EBITDA increased like-for-like
4
© 2012Holcim Ltd/Switzerland
Financialresults2011
4) The modest economic recovery continued in Mexico and Central America. Ecuador, Colombia and
Brazil
benefited from improved access to foreign financing sources and from stable oil and commodity prices
.
Economic conditions also remained sound in Argentina and Chile. Sales volumes increased in all seg
ments
in Latin America. The biggest increase was in aggregates. Capacity was substantially increased at Hol
cim
Ecuador's Guyaquil plant in 2011. This will enable the company to participate more in the country's gro
wth.
Capacity is also being expanded in the booming market in Brazil. By 2014, Holcim will have built a ne
w kiln
line at the Barroso plant, which will increase the capacity of this company by 2.6 million tonnes of cem
ent to
around 8 million tonnes. Operating EBITDA declined in Group region Latin America. Group companies
in El
Salvador, Colombia and Chile recorded better results, but sales prices in some markets could not be
adjusted to the rise in costs. The strong Swiss franc also made itself felt. Group region Latin America d
id
register organic growth on operating EBITDA level.
3
Stable markets in Africa Middle East

 Positive economic development in Morocco, Lebanon, West
Africa and in the Middle East
 Decreasing shipments of aggregates, but increased sales
volumes of ready-mix concrete
 Project for doubling clinker capacity at the Fès plant continued
as scheduled
 Operating EBITDA almost reached previous year’s level
like-for-like
5
© 2012Holcim Ltd/Switzerland
Financialresults2011
5) The construction sector developed very positively in the markets relevant to Holcim. Cement and
aggregate volumes declined, however. This is attributable to increased competition in Morocco, where
new
players have joined the market. By contrast, sales of ready-mix concrete increased. The project to
double
clinker capacity at the Fès plant continues to progress according to schedule. This facility will commenc
e
production in the second half of 2012. The operating EBITDA of Group region Africa Middle East declin
ed,
primarily as a result of the currency impact. In Morocco, the operating result was adversely affected by l
ower
volumes, higher fuel costs, and strong pressure on prices. In order to keep pace with the growth of the
market, the Lebanese Chekka plant had to purchase expensive clinker on specific occasions. At least s
elling
prices could be increased slightly. The Group companies in the Indian Ocean only just failed to match t
he
previous year's result. On a like-for-like basis, operating EBITDA almost reached the level of the
previous
year.

Dynamic building activity in Asia Pacific

Asia predominantly remained on a growth path and in Oceania
only the mining sector is enjoying a good workload

Floods and an earthquake impacted building activity in
Australia, Thailand and New Zealand

Higher sales volumes in all segments

Selective capacity expansion

Despite cost pressure, operating EBITDA increased significantly
like-for-like
6
© 2012Holcim Ltd/Switzerland
Financialresults2011
6) Economic growth was strong in the Group region Asia Pacific. Thailand's economy stalled temporaril
y
following the serious floods in the fall. In Oceania, the year kicked off with severe flooding in eastern
Australia, while the earthquake in New Zealand also hindered the construction sector for a while. In Indi
a,
ACC and Ambuja Cements sold significantly more cement thanks to capacity increases. Siam City Ce
ment
in Thailand supplied rather more cement domestically, and deliveries of aggregates and ready-mix
concrete
were up sharply. Holcim Vietnam won a number of key orders in the commercial and industrial sector. I
n the
Philippines, cement sales declined due to weak infrastructure construction, and Holcim Indonesia poste
d

robust sales increases in all segments thanks to a booming construction sector. The project for a ceme
nt
plant in Tuban on the main island of Java progressed according to schedule, and will enter production i
n
2013. Cement Australia sold rather less cement, while Holcim Australia also suffered from poor weathe
r
conditions, but managed to increase its sales of aggregates. Ready-mix concrete sales only just fell
short of
the previous year’s level. Operating EBITDA for the Group region Asia-Pacific declined due to inflation-
related cost pressure, which could not yet be passed on to prices everywhere. On a like-for-like basis,
however, significant growth was recorded.
4
Key financial figures – Q4 2011
Million

CHF
Q4 +/-
(ifnototherwisestated)
2010 2011

LFL

CIS
FX

Total
Sales volumes
- Cement (mt) 33.9 36.2 6.3% 0.4% 6.7%
- Aggregates (mt) 39.1 42.6 7.2% 1.8% 8.9%
- Ready-mix (mm

3
) 11.5 12.2 3.0%



3.6% 6.5%
Net sales 5,085 5,284 13.1% 0.8%



-10.0%

3.9%
Operating EBITDA 936 987 15.5% 0.3%



-10.5%

5.3%
Operating profit 441 180 -55.6%



-1.8%



-1.9% -59.2%
Net income 398 -322 -197.6%

-1.1% 17.8%



-180.8%
Net income attr. to
Holcim shareholders 307 -438 -270.4%



-1.4% 28.8%



-242.9%
Cash flow 1,606 1,823 28.4% 0.3%



-15.2%

13.5%
7
© 2012Holcim Ltd/Switzerland
Financialresults2011
7) Let us begin with the review of the key financial figures of the fourth quarter before turning to the full
-year
2011 results. Cement volumes increased by 6.7 percent, driven mainly by the Group regions Asia Pacif
ic
and, to a lesser extent, Latin America, North America and Europe. Sales volumes in Group region Afri
ca
Middle East declined slightly. Aggregates sales volumes increased by 8.9 pecent, or 7.2 percent on a li
ke-
for-like base. This result was mainly driven by Group region Europe, Latin America and Asia Pacific.
Ready-
mix concrete recorded a 6.5 percent volume growth of which 3.6 percent are due to acquisitions in Eur
ope
and North America. Net sales increased by 3.9 percent to 5.3 billion Swiss francs, or a strong 13.1 per
cent
on a like-for-like base. This result is a combination of a good overall volume growth and improving
pricing
levels achieved towards the end of 2011. The increasingly positive impact from pricing together with th
e
good volume growth and some 32 million Swiss francs higher sales from CO2 trading, more than offse
t the
increased costs. As a result the like-for-like operating EBITDA improved by an impressive 15.5
percent. For
the first time since the first quarter 2010, the operating EBITDA margin increased on a quarterly like-
for-like
base. As already previously announced, the impairment charges and provisions of 775 million Swiss fr
ancs

after tax booked in the quarter under review negatively impacted net income attributable to Holcim
shareholders, thus turning it to a negative 438 million Swiss francs. Adjusting for this 775 million Swiss
francs, the net income attributable to Holcim shareholders would have reached 337 million Swiss franc
s, an
increase of 9.8 percent.
Key financial figures – Full year 2011
Million

CHF
(ifnototherwisestated)
2009

2010

2011
+/-
LFL

CIS

FX

Total
Sales volumes
- Cement (mt) 131.9 136.7 144.3 5.5% 0.1% 5.6%
- Aggregates (mt) 143.4 157.9 173.0 5.6% 4.0% 9.6%
- Ready-mix (mm
3
) 41.8 45.9 48.4 2.2%

3.2% 5.4%
Net sales 21,132 21,653 20,744 7.5% 0.8%



-12.5%

-4.2%
Operating EBITDA 4,630 4,513 3,958 -0.2% 0.2%



-12.3%



-12.3%
Operating profit 2,781 2,619 1,933



-14.7%



-0.5%

-11.0%



-26.2%
Net income 1,958 1,621 682



-52.3%



-0.4%



-5.2%



-57.9%
Net income attr. to
Holcim shareholders 1,471 1,182 275



-74.9%

-0.5%



-1.3%



-76.7%
Cash flow 3,888 3,659 2,753



-14.0%



-0.3%



-10.5%



-24.8%
EPS CHF

1
4.93 3.69 0.86 -76.7%
Dividend / payout per
share CHF 1.50 1.50

1.00
2
-33.3%
1
Calculatedontheweightedaveragenumberofsharesoutstanding
2
ProposedbytheBoardofDirectorsforapayoutfromcapitalcontributionreserves
© 2012Holcim Ltd/Switzerland
8
Financialresults2011
8) Let us now cover the key financial figures for the full year 2011. Sales volumes of cement increased
by
around 5.6 percent, supported by positive developments in all Group regions but Africa Middle East.
Aggregates sales volumes increased by a strong 9.6 percent with high single-digit to double-digit
growth
rates in most regions except Africa Middle East. The result was also supported by a number of smaller
acquisitions such as Lattimore Materials Inc. in the United States of America and Est Granulats / Aube
Bétons in France. Ready-mix concrete volumes increased by some 5.4 percent of which some 3.2
percent
being contributed by the aforementioned smaller acquisitions. All regions contributed to this volume inc
rease,
albeit at varying levels. The overall volume increases benefitted on the one hand from an improved de
mand
in a number of developed markets, while on the other hand from continued building activity in many

emerging markets. Net sales amounted to 20.7 billion Swiss francs, down 4.2 percent compared to the
previous year predominantly due to the negative currency impact with the very strong Swiss franc
contributing a negative 12.5 percent to the top line development. On a like-for-like base sales
increased by a
good 7.5 percent. The operating EBITDA declined by some 12.3 percent just falling short of 4 billion S
wiss
francs. On a like-for-like base, the operating EBITDA only decreased by 0.2 percent, thus reflecting the
good
volume and pricing momentum recorded during the second half of 2011 that nearly managed to offset
the
negative impact of higher raw material, energy and distribution costs on the one hand, and lower inco
me
5
from CO2 trading on the other. Net income attributable to shareholders of Holcim Ltd amounted to 275
million Swiss francs, down 76.7 percent year-on-year. This decline was strongly driven by the
announced
impairment charges in Spain, Eastern Europe and the US as well as by the AfriSam investment.
Reconciliation of impairment charges on results
Million

CHF
Net sales 21,653
20,744
One-off

Pro

forma
items

vs.

2010
20,744 -4.2%
Operating EBITDA 4,513 3,958 17
1
3,975 -11.9%
Depreciation -1,894 -2,025 359
2
-1,666 -12.0%
Operating profit 2,619 1,933 375 2,308 -11.9%
Financial expenses -897 -1,210 415
3
-795 -11.4%
Income taxes -615 -449 15
4
-464 -24.6%
Net income 1,621 682 775 1,457 -10.1%
Net income attr. to
Holcim shareholders 1,182 275 775 1,050 -11.2%
EPS CHF
5
3.69 0.86 3.28 -11.1%
1

EnvironmentalprovisionsrelatedtotheclosuresinNorthAmerica
2

ImpairmentchargesofwhichCHF327millionrelatedtoEuropeandCHF32millionrelatedtoNorthAmerica
3

ImpairmentandreclassificationofforeignexchangelossesrelatedtoAfriSam
4

Taxeffectrelatedtoimpairmentcharges
5

Calculatedontheweightedaveragenumberofsharesoutstanding
© 2012Holcim Ltd/Switzerland
9
Financialresults2011
9) Before giving you a more detailed picture of our 2011 results, I would like to highlight an important p
oint
that was already mentioned but needs to be further elaborated. On January 16, 2012, impairment char
ges
amounting to 775 million Swiss francs after tax were announced and recognized in the Group’s financi
al
statements of the fourth quarter 2011 in the amount of 790 million Swiss francs before tax. On a pre
operating EBITDA level provisions of 17 million Swiss francs relating to the plant closures in the US we
re
booked. The depreciation charge of just above 2 billion Swiss francs was negatively impacted by impai
rment
charges of 359 million Swiss francs; stemming from Spain with 237 million Swiss francs, with the remai
nder
split among Hungary, the Czech Republic and 32 million Swiss francs being related to the United State
s of
America. Adjusting for these impairments and provisions, the operating profit would have reached 2.3
billion
Swiss francs, a decline of 11.9 percent compared to the previous year. The impairment on the AfriSam
investment amounted to 415 million Swiss francs, therefore resulting in an increase of the financial exp

enses
to 1.2 billion. The tax effect of these provisions and impairments amounted to 15 million Swiss francs.
While
the reported net income attributable to Holcim Ltd shareholders amounted to 275 million Swiss francs,
representing a decline of 76.7 percent, the result excluding for the aforementioned amount would have
reached more than 1 billion Swiss francs, declining some 11.2 percent compared to the previous year.
Major changes in the scope of consolidation
Effective as at
+
Est

Granulats,

Aube

Bétons

and

Hupfer

AG

(Moldau) January

1,

2011
+
Lattimore

Materials

Inc. March

4,

2011
+/–

Various

smaller

companies
© 2012Holcim Ltd/Switzerland
10
Financialresults2011
2011
6
Cement – Sales volumes by re
gion
Million t
Total Group
2009 131.9
2010 136.7
2011 144.3
∆ 2010/2011 LFL
Change in
Total

© 2012Holcim Ltd/Switzerland
structure
Europe 1.9% 0.3% 2.2%
North America 2.9% 0.0% 2.9%
Latin America 6.7% 0.0% 6.7%
Africa Middle East -2.1% 0.0% -2.1%
Asia Pacific 5.8% 0.1% 5.9%
Total 5.5% 0.1% 5.6%
11
Financialresults2011
Aggregates – Sales volumes by region
Million t
Total Group
2009 143.4
2010 157.9
2011 173.0
∆ 2010/2011 LFL
Change in
Total
© 2012Holcim Ltd/Switzerland
structure
Europe 3.3% 3.7% 7.0%
North America 2.4% 8.7% 11.0%
Latin America 18.7% 0.0% 18.7%
Africa Middle East -7.0% 0.0% -7.0%
Asia Pacific 12.6% 0.0% 12.6%
Total 5.6% 4.0% 9.6%
12
Financialresults2011
Ready-mix concrete and asphalt – Sales volumes

by region
Million m
3
/t
Total Ready-mix
2009 41.8
2010 45.9
2011 48.4
∆ 2010/2011 * LFL
Change in
s
tructure
Total
Total Asphalt
2009 11.0
2010 10.6
2011 10.3
*

Ready-mixconcreteonly
© 2012Holcim Ltd/Switzerland
Exchange rates
Europe 0.3% 0.3% 0.5%
North America 0.2% 25.3% 25.4%
Latin America 5.2% 0.0% 5.2%
Africa Middle East 4.0% 0.0% 4.0%
Asia Pacific 2.8% 0.0% 2.8%
Total 2.2% 3.2% 5.4%
13
Financialresults2011

Statement of income
2010 2011 +/-
1 EUR 1.51 1.38 1.24 -10.1%
1 GBP 1.70 1.61 1.42 -11.8%
1 USD 1.09 1.04 0.89 -14.4%
1 LATAM Basket (MXN, BRL, ARS, CLP)

1
0.98 1.00 0.87 -13.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
1
0.95 1.00 0.89 -11.0%
Statement of financial position
+/-
1 EUR 1.49 1.25 1.22 -2.4%
1 GBP 1.66 1.45 1.45 0.0%
1 USD 1.03 0.94 0.94 0.0%
1 LATAM Basket (MXN, BRL, ARS, CLP)

1
1.06 1.00 0.90 -10.0%
1 Asian Basket (AUD, IDR, INR, THB, PHP)
1
1.03 1.00 0.93 -7.0%
1

Weightedbynetsalesfullyear2011
© 2012Holcim Ltd/Switzerland
14
Financialresults2011

7
Foreign exchange rate impact
Million CHF
Netsalesimpact

OperatingEBIT DAimpact

Salesimpact

EBITDAimpact
86
139
1.8%
2.5%
1.7%
40
2.9%
-
1
7
9
-
3
.
1
%
-32
-2.2%
-42
-4.1%

-228
-4.3%
-73
-8.0%
-181
-14.2% -14.7%
-98
-10.5%
-435
-9.2%
-508
-10.0%
-916
-854
-14.9%
-15.1%
Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011
15
© 2012Holcim Ltd/Switzerland
Net sales
Million CHF
Financialresults2011
Like-for-Like

(LFL) -2,510

-10.0% -444

-2.1% 1,632

7.5%
Change

in

structure 195

0.8% 1,147

5.4% 171

0.8%
Forex

movements -1,710

-6.8% -182

-0.8% -2,712

-12.5%
Total change -4,025

-16.0% 521 2.5% -909 -4.2%
16
© 2012Holcim Ltd/Switzerland
Financialresults2011
Net sales by region
average exchange rates in CHF
exchange rates in CHF
31/12/09 31/12/10
13
-203
Million

CHF
2009

21,132
2010

21,653
2011

20,744
∆ 2010/2011 LFL

Change in

Currency Total
structure
Europe 3.1% 0.4% -9.9% -6.3%
North America 1.3% 4.7% -13.9% -7.8%
Latin America 11.1% -0.4% -14.5% -3.8%
Africa Middle East -0.3% 0.0% -12.4% -12.6%
Asia Pacific 14.2% 0.0% -13.7% 0.5%
Total 7.5% 0.8% -12.5% -4.2%
17
© 2012Holcim Ltd/Switzerland
Financialresults2011
17) Net sales amounted to 20.7 billion Swiss francs, representing an overall decrease of 4.2 percent.
Excluding changes in the scope of consolidation amounting to 0.8 percent and foreign exchange move
ments
contributing a negative 12.5 percent, the like-for-like change amounted to an increase of 7.5 percent.
The
main driver of the change in structure was the already mentioned acquisition of Lattimore Materials Inc.
in
Group region North America and some smaller acquisitions in Group region Europe. On a like-for-like
base
Group sales benefitted from good to very good cement and aggregates volume growth in Group region
Latin
America and Asia Pacific, and solid growth in ready-mix concrete volumes in Group region Latin
America
and Africa Middle East. On a like-for-like base pricing in cement benefitted from solid increases in
Group
region Latin America and above all Asia Pacific and to a somewhat lesser extent Europe. Aggregates p

ricing
on a like-for-like base was mainly driven by Group region North America, Latin America and Asia
Pacific.
8
Net sales by region
Net sales 2011
Europe
28.6%
North

America
14.0%
Asia

Pacific
37.4%
Latin

Americ
a
15.5%
Africa

Middle

East
4.5%
© 2012Holcim Ltd/Switzerland
Operating EBITDA
18

Financialresults2011
Million

CHF Margin
Like-for-Like (LFL) -270 -5.1% -284

-6.1% -11 -0.2%
Change in structure -39 -0.7% 188 4.1% 11 0.2%
Forex movements -394 -7.4% -21

-0.5% -556

-12.3%
Total

change -703

-13.2% -117

-2.5% -556

-12.3%
19
© 2012Holcim Ltd/Switzerland
Financialresults2011
19) Operating EBITDA nearly reached 4 billion Swiss francs, representing a decline of 12.3 percent.
Adjusting for the negative currency impact amounting to a negative 12.3 percent and the changes in th
e
scope of consolidation of 0.2 percent, the operating EBITDA remained more or less flat at minus 0.2 p
ercent

compared to last years level. The positive momentum recorded during the second half of 2011 with go
od
volume and pricing growth more than offsetting negative cost impacts, could not fully compensate for t
he
weaker result recorded in the first half of 2011. However, excluding the impact from lower CO2 sales of
32
million Swiss francs compared to the previous year, the like-for-like operating EBITDA in fact
increased by
21 million Swiss francs, or some 0.5 percent.
Operating

EBITDA

by

region
Million CHF
2009

4,630
1
2010

4,513
©

2012Holcim

Ltd/Switzerland
2011

3,958
∆ 2010/2011 LFL

Change in

Currency Total
structure
Europe -3.8% 0.7% -7.9% -11.0%
North America -15.5% 1.3% -10.7% -24.9%
Latin America 2.9% -0.2% -13.9% -11.2%
Africa Middle East -1.1% 0.0% -11.9% -13.0%
Asia Pacific 6.8% 0.0% -13.4% -6.6%
Total -0.2% 0.2% -12.3% -12.3%
20
Financialresults2011
20) In Group region Europe, like-for-like operating EBITDA decreased by 3.8 percent mainly prompted
on
the one hand by a lower performance in Hungary, the United Kingdom, Belgium and Italy and on the ot
her
the lower sales from CO2 transactions. This negative development could not be fully offset by favorabl
e price
developments. Full year operating EBITDA reached 930 million Swiss francs, down 11 percent year-
on-year.
In Group region North America the operating EBITDA reached 346 million Swiss francs, down 24.9 per
cent.
On a like-for-like base the decline amounted to minus 15.5 percent, mainly driven by the slightly lower
prices
and additional costs related to higher logistics costs and closure costs at Holcim US. This was only par
tially

compensated by positive volume developments. In Aggregates Industries US, prices developed positiv
ely
but could not fully offset the increased variable costs, such as raw material especially in the case of as
phalt.
9
Group region Latin America posted an operating EBITDA of 888 million Swiss francs, down 11.2 perce
nt
overall, but up 2.9 percent on a like-for-like base. A number of countries such as Colombia and
Argentina,
reported a significant increase in prices and volumes on the back of favorable market conditions. On th
e
other hand the overall positive development was somewhat dampened by Holcim Brazil that, like a nu
mber
of other subsidiaries, faced higher raw material and energy costs that could not be fully offset by adequ
ate
price increases. The Group region Africa Middle East posted an operating EBITDA of 312 million Swiss
francs, down 13 percent in total. However, on a like-for-like base the result was only 1.1 percent short
of last
years level. The negative development was mainly driven by decreasing sales volumes in Holcim Moro
cco in
an increasingly competitive market environment. Group region Asia Pacific recorded an operating EBIT
DA of
1.7 billion Swiss francs, down 6.6 percent. Excluding the negative currency impacts, the region recorde
d an
increase of 6.8 percent. Key contributors to this result were Holcim Indonesia enjoying an increased
domestic demand, Holcim Australia and our two stakes in the Indian companies ACC and Ambuja Ce
ment
that all witnessed higher pricing and volumes, partially impacted by higher costs however. On the other
hand, Holcim Philippines reported a negative contribution.
Operating profit

Million CHF Margin
Like-for-Like (LFL) -245 -7.3% -281

-10.1% -385

-14.7%
Change in structure -72 -2.1% 104 3.7% -14 -0.5%
Forex movements -262 -7.8% 15 0.6% -288

-11.0%
Total

change -579

-17.2% -162

-5.8% -686

-26.2%
© 2012Holcim Ltd/Switzerland
Operating profit by region
Million CHF
21
Financialresults2011
2009

2’781
1
2010

2’619
© 2012Holcim Ltd/Switzerland
Net

income
Million CHF
2011

1’933
∆ 2010/2011 LFL

Change in

Currency Total
structure
Europe -92.5% -0.3% 4.7% -88.1%
North America -96.3% -11.1% 6.9%

-100.4%
Latin America -0.1% -0.2% -13.5% -13.8%
Africa Middle East -2.4% 0.0% -11.6% -14.0%
Asia Pacific 10.3% 0.0% -14.1% -3.8%
Total -14.7% -0.5% -11.0% -26.2%
22
Financialresults2011
-12.0% -17.5%
-17.2% -19.6%
-57.9%
-76.7%
©

2012Holcim

Ltd/Switzerland
23
Financialresults2011
23) Below operating profit, other income amounted to 69 million Swiss francs, up 61 million Swiss franc
s.
The contribution from associated companies declined to 149 million Swiss francs, down from 245 millio
n
Swiss francs in the previous year with the main driver being lower profit from the stake in Egypt. Financ
ial
10
income declined to 191 million Swiss francs, down 71 million Swiss francs, mainly driven by the lower
change in fair value of the compensation related to the nationalized Holcim Venezuela in the amount of
55
million Swiss francs. Financial expenses increased to 1.2 billion Swiss francs, predominantly as a resul
t of
the already mentioned impairment on investments related to AfriSam of some 415 million Swiss francs
. After
a tax charge of nearly 40 percent, Group net income decreased by 939 million Swiss francs or 57.9 pe
rcent
to 682 million Swiss francs. On a like-for-like base the decline amounted to 52.3 percent. Net income
attributable to the shareholders of Holcim Ltd declined by 76.7 percent to 275 million Swiss francs. Th
e
overall decline was mainly driven by the aforementioned impairment charges recorded in the fourth qu
arter
2011.
Cash flow from operating activities
Million CHF Margin

Like-for-Like

(LFL) 446

12.0% -323

-8.3% -511

-14.0%
Change

in

structure 61

1.6% 136

3.5% -11

-0.3%
Forex



movements



-322

-8.6%





-42







-1.1%





-384

-10.5%

Total

change 185

5.0% -229

-5.9% -906

-24.8%
24
© 2012Holcim Ltd/Switzerland
Cash flow statement
Financialresults2011
Million

CHF 2009

2010

2011 +/-
Cash

flow

from

operating

activities 3,888 3,659 2,753
-24.8%
Net investments to maintain productive
capacity and to secure competitiveness
-
376
-410 -752 -83.5%
Free

cash

flow 3,512 3,249 2,001
-38.4%
Expansion investments -1,929 -1,182 -886 25.0%
Financial (in)divestments net
1
-2,125 230 -153 -166.5%
Dividends paid -192 -719 -713 0.8%
Financing

(requirement)/surplus -734 1,578 248
-84.3%
1
BasedonanamendmentinIAS7,cashflowsarisingfromchangesinownershipinterestsinasubsidiarythatdonotresultinalossof
controlareclassifiedascashflowsfromfinancingactivitiesandnotasinvestingactivities,whichistobeappliedonaretrospectivebasis 25
© 2012Holcim Ltd/Switzerland

Financialresults2011
25) The financing surplus for 2011 amounted to 248 million Swiss francs. Lower operating EBITDA an
d
higher income taxes more than offset lower net financial expenses, hence resulting in a decline of the
cash
flow from operating activities to just below 2.8 billion Swiss francs, or down 24.8 percent. On a like-for-
like
base the decline amounted to minus 14 percent with the other decline coming from negative currency
movements. For the full year, we invested a total of 752 million Swiss francs to sustain the asset base
while
expansion investments amounted to 886 million Swiss francs.
Financial position
Million CHF
Debt ratios 2009 2010 2011
FFO
1
/Net

financial

debt 27.6% 31.3% 26.4%
Net

financial

debt/EBITDA 2.6x 2.3x 2.7x
1

Netincomeplusdepreciation,amortizationandimpairment
© 2012Holcim Ltd/Switzerland

26
Financialresults2011
11
Loans
Capitalmarkets
Loans
Capitalmarkets
26) Total shareholders’ equity decreased to 19.7 billion Swiss francs, strongly driven by currency transl
ation
in the amount of 1.1 billion Swiss francs. Net financial debt slightly increased to 11.5 billion Swiss franc
s, up
1.6 percent mainly due to the lower cash flow and increased financial investments. Currency had hardl
y an
impact on the net financial debt at year end 2011. Driven by the decline in equity the gearing increased
to
58.8 percent as of December 31 2011, up from 53.8 percent in the previous year.
Financial debt, maturities and liquidity as of
December 31, 2011
Maturity

profile

(CHF

million)
Liquiditysummary


Cash + marketablesecurities:CHF 2,951million


Cash + marketablesecurities+ unusedcommitted
creditlines:CHF 7,269million
Debtsummary


Currentfinancialliabilities
1
: CHF 2,795million


Fixedto floatingratio:53% fixed


Capitalmarkets 67%; Loans33%


Corporatevs. subsidiarydebt:76%corporate


Ø totalmaturity: 4.0 years


CPborrowings:CHF 61 million


No financialcovenantsat corporatelevel
ST/LT ratingssummary asof February2,2012


S&P CreditRating: A-2 / BBB, outlookstable


FitchCreditRating: F2/ BBB, outlookstable


Moody’s CreditRating:

P-2 / Baa2,outlooknegative
1

Currentfinancialliabilitiesadjustedforshort-termdrawingsunderlong-termcommittedcreditlines
© 2012Holcim Ltd/Switzerland
27
Financialresults2011
Jan12Feb12Mar12
Apr12
May12Jun12Jul12Aug12Sep12
Oct12
Nov12Dec12Jan13Feb13Mar13
Apr13
May13Jun13Jul13Aug13Sep13
Oct13
Nov13Dec13
5'000
4'000
3'000
2'000
1'000
0

5'0004'0003'0002'0001'000
<1y 1-2y 2-3y 3-4y 4-5y 5-6y
27) Cash and marketable securities amounted to 3 billion Swiss francs. Undrawn committed credit line
s
added another 4.3 billion Swiss francs to liquidity, thus giving Holcim a comfortable 7.3 billion Swiss fra
ncs
financial flexibility at its disposal. The average maturity of the financing stood at 4.0 years as of 31
December 2011.
100

years

of

Holcim

On February 15, 2012, Holcim celebrated 100 years in business

From a cement plant in Holderbank, Holcim evolved into a
leading construction materials Group

Dominik Flammer has described the company's history in 10
decades in a book

Key to success are the employees; internationally renowned
photographers put them in focus

The photo book will be published tomorrow together with an
exhibition at the Fine Arts Museum in Berne


We will report about two sponsoring activities in the course of
the year

With volunteering activities, employees thank the communities
and neighbors at production sites
28
©

2012Holcim

Ltd/Switzerland
Financialresults2011
28) The Aargauische Portland Cement Factory was founded in Holderbank, in the Canton of Aargau, o
n
February 15, 1912.

Within a year, this plant, state-of-the-art facility for its era, commenced operations
producing 90,000 tonnes annually. Over the next hundred years, one of the world's leading building ma
terials
groups would evolve from this one factory. To mark Holcim's anniversary, Dominik Flammer, a compan
y
historian, has summarized the milestones of the company over the ten decades of its existence in an
attractive book. If any of you do not yet have a copy, please help yourselves to one in the foyer after thi
s
presentation. The key to the success of any company is its employees. Marco Grob has taken staff por
traits
all over the world, while David Hiepler and Fritz Brunier, who specialize in industrial photography, have
captured a number of plants across all five continents on camera. The result is an art book that we are
pleased to present to you. It is a small token of thanks for all who feel connected to Holcim. The fascin
ating

images it contains will also be on show tomorrow at a public viewing at the Kunstmuseum Bern – the F
ine
Arts Museum in Berne. A selection of the pictures will be presented to the public as part of a major
exhibition, which runs until May 6, 2012. The focus this year throughout the Group is the volunteering
activity
of employees all over the world. Group companies have put together their own individual volunteering
programs for the benefit of local communities and neighbors – primarily in the areas where our product
ion
sites are located. This is our way of offering a small thank you to the public in our anniversary year.
12
A great company with upside potential
 A very well organized CEO transition
 Strong strategy and strategy processes
 Committed leaders and employees
 A "deliver" culture with close attention paid to costs and prices
 A sound balance sheet
 Multiple opportunities available for growth, a cautious approach
to investments with a focus on returns
 Teams are focused on sustainable development
 Upside potential
29
© 2012Holcim Ltd/Switzerland
Financialresults2011
29) I started as CEO on February 1 and enjoyed an extremely well-organized transition. I wish to thank
Rolf
Soiron, Markus Akermann and the Holcim EXCO members for this, as well as all those who contribute
d to
this exceptional induction. This excellent transition allowed me to meet with customers, many of our le
aders,
our employees, trade unionists and other stakeholders in several developing and mature countries. I a

m
happy to share my initial feedback and some of my key areas of focus with you. It will be a qualitative
exercise. It is only when I have more detailed plans that I shall provide quantified indications which we
will
commit ourselves to delivering. It is no surprise to me that what I found here is an exceptional compan
y.
Today, I will only focus on a few aspects among many that positively impressed me. All companies als
o have
room for further continuous improvements or even upsides as they progress on their performance jour
ney. I
shall focus on the company strengths and also on upside opportunities.
Areas of focus
 Improve the ROIC of current asset base
Customer Excellence: customer focus and value management,
portfolio margin management, pricing policies, sales force skills
and motivation
Cost Leadership: logistics, procurement, energy, fixed costs
 Continue company’s strong process of strategic portfolio
reviews
Constantly optimize strategic footprint and review growth
opportunities
Be open to selective divestments if/when it makes sense
 Reduce Total Cost of Ownership of future expansion capex
30
© 2012Holcim Ltd/Switzerland
Financialresults2011
30) As a first area of focus, I see a necessity as well as significant opportunities to improve the return o
n
invested capital of current assets. I believe the company can achieve further progress through a strong
er

customer focus translating into improved value management with the customers, more precise portfoli
o
margin management and pricing policies. Combined with specific attention paid to the training and the
motivation of our sales force, a Customer Excellence focus should deliver quick wins as well as sustai
nable
mid-term improvements. Holcim has already reported significant efforts on its costs since 2008. My
view is
that, yes, a lot has been achieved on the costs front, but we still have numerous opportunities to furthe
r
continue what I call our "cost leadership journey". In all the units I have visited, I met with leaders and
employees reporting their achievements on costs reductions and sharing with me how they could go fu
rther.
So I expect significant initiatives to be further deployed on costs improvements, in particular in the area
s of
logistics, of procurement, of energy and of fixed costs, including the costs of the support functions. A s
trong
strategic focus is clearly a strength of the company, and I want to build on it. Holcim has very good stra
tegic
processes in place, including systematic reviews to optimize the footprint and to position the company f
or
growth opportunities. This will continue. As we deploy our strategic reviews, I shall be open to selectiv
e
divestments if and when it makes sense. Now, the cost of expansion capex, or how much per tonne of
product it costs us to invest in a new plant. The cost of our expansion capex is impacted by several fac
tors,
like for example the standards we select for a project, the organization of the project, the selection of o
ur
suppliers or our procurement organization. I think we have opportunities to reduce the total cost of own
ership
of our future expansion capex, and this is clearly for me an area of focus.

1
3
Areas of focus
 Engage and develop employees and leaders
Health & Safety: journey to "Zero Harm to People"
Develop leaders and promote best practice exchange
Focus on talent management
Engage all employees to further develop skills to support strategic
goals and commercial & operational excellence
© 2012Holcim Ltd/Switzerland
31
Financialresults2011
31) Last but not least, in this first review of my areas of focus, I want to mention the Group’s employees
and
leaders. We are a company that cares for its people, and with the Executive Committee, we have alrea
dy
committed to a further step change on Health and Safety, making our "Journey to Zero Harm to People"
our
priority number 1. This journey is built on a very strong commitment by the leaders at all levels of the
organization, as well as on a good social dialogue with trade unions and employee representatives. As
we
set ambitious operational goals and strategies, I see it as a top priority to continue to develop leaders a
nd
talents, and to give the opportunity to the employees to continue to raise their skills and to improve their
competitiveness and their employability. This will also be an opportunity to further accelerate exchanges
of
best operational practices between the units. With this I conclude my initial feedback and remarks about
my
key areas of focus.
Capacity expansion at ACC in East India

Sindri grinding plant,
expansion: 1.35 million t
Kharagpur grinding plant,
new: 2.7 million t
Jamul cement plant,
replacement/expansion:
1.1 million t
/

Cement plant ACC / ACL
Capacity expansion ACC
/

Grinding plant/Cement terminal ACC / ACL
/

Capacity expansion ACC / ACL
32
© 2012Holcim Ltd/Switzerland
Financialresults2011
32) Holcim has decided to expand the cement production capacity at the Group company ACC in east I
ndia,
a market with great potential, by more than 5 million tonnes. At the existing Jamul site, in Chhattisgarh
state,
the current facility will be replaced by a state-of-the-art clinker plant with a daily capacity of 9,000
tonnes,
and the grinding capacity will be increased by 1.1 million tonnes of cement per year. At the same time, t
he
capacity of the existing Sindri grinding plant will be increased by 1.35 million tonnes of cement per year,
and

a new grinding plant with an annual capacity of 2.7 million tonnes of cement will be built at Kharagpur. B
oth
grinding plants will be supplied with clinker from Jamul. It is planned to start operations at the new facilit
ies
towards the beginning of 2015.
14
Outlook 2012
 Europe : stable demand
 North America : slightly higher sales volumes
 Latin America: increased demand for construction materials
 Africa Middle East: market conditions unchanged
 Asia Pacific: growing demand for construction materials
Holcim will accord cost management the closest attention and
pass on inflation-induced cost increases. Its approach to new
investments will be cautious. Holcim expects that the Group will
achieve organic growth in terms of operating EBITDA.
© 2012Holcim Ltd/Switzerland
33
Financialresults2011
33) Holcim expects demand for building material to rise in emerging markets in Latin America and Asia
, as
well as in Russia and Azerbaijan in 2012. A slight improvement for North America can also be expecte
d. In
Europe, demand should remain stable, provided that the situation is not undermined by further systemi
c
shocks. In any case, Holcim will accord cost management the closest attention and pass on inflation-
induced
cost increases. Holcim’s approach to new investments will be cautious. Holcim expects that the Group
will
achieve organic growth in terms of operating EBITDA.

Cost and capex guidance for 2012
 Energy costs per tonne of cement produced at around CHF
17.00 per tonne – representing an increase of CHF 1.00 per
tonne or around 6 percent
 Fixed costs to grow below the local rate of inflation
 Average interest rate slightly above the 4.4 percent level
recorded in 2011
 Long term expected tax rate of 27 percent
 Maintenance capex of CHF 0.9 billion net
 Expansion capex of CHF 1.1 billion
 Initiatives to further reduce costs
34
© 2012Holcim Ltd/Switzerland
Financialresults2011
Europe – mature and emerging market highlights
Million

CHF
(ifnotot herwisestated)
2010 2011
LFL


CIS
+/-
FX

Total
Cement

volumes



(mt)



26.2



26.8









1.9%

0.3%



2.2%

-

of

which

mature

markets
-

of

which

emerging

markets
Aggregates

volumes

(mt)
-

of

which

mature

markets
-

of

which

emerging

markets
Ready-mix

volumes

(mm
3
)
-

of

which

mature

markets
-

of

which

emerging

markets
16.3

16.5

1.1%

0.0%

1.1%
9.9

10.3

3.3%

0.8%

4.1%
77.6

83.0

3.3%

3.7%

7.0%
69.4

72.0

0.9%

2.8%

3.8%
8.2

11.0

22.9%

11.1%

34.0%
16.0

16.1

0.3%

0.3%

0.5%
14.1

14.2

0.4%

0.3%

0.7%
1.9

1.9

-0.9%

0.2%

-0.7%
Net

sales



6,535



6,122









3.1%

0.4%





-9.9%









-6.3%



-

of

which

mature

markets
-

of

which

emerging

markets
5,402

5,026

2.1%

0.4%

-9.4%

-7.0%
1,133

1,096

7.9%

0.8%

-12.0%

-3.3%

Operating



EBITDA



1,045



930









-3.8%

0.7%





-7.9%







-11.0%

-

of

which

mature

markets
-

of

which

emerging

markets
© 2012Holcim Ltd/Switzerland
717

640

-5.7%

1.0%

-6.0%

-11.0%
328

290

0.5%

-0.2%

-11.9%

-10.8%
35

Financialresults2011
15
Asia Pacific – mature and emerging market
highlights
Million

CHF
+/-
LFL

CIS

FX

Total
Cement volumes (mt) 71.4 75.6 5.8% 0.1% 5.9%
- of which mature markets
- of which emerging markets
Aggregates volumes (mt)
- of which mature markets
- of which emerging markets
Ready-mix volumes (mm
3
)
- of which mature markets
- of which emerging markets
4.7 4.7 -1.0% 0.0% -1.0%
66.7 70.9 6.3% 0.1% 6.4%
26.4 29.7 12.6% 0.0% 12.6%
23.2 25.9 11.8% 0.0% 11.8%

3.2 3.8 18.7% 0.0% 18.7%
12.7 13.0 2.8% 0.0% 2.8%
5.8 5.8 -1.1% 0.0% -1.1%
6.9 7.2 6.1% 0.0% 6.1%
Net sales 7,958 8,001 14.2% 0.0%



-13.7%

0.5%
- of which mature markets
- of which emerging markets
2,319 2,431 9.3% 0.0% -4.5% 4.8%
5,639 5,570 16.2% 0.1%

-17.5% -1.2%
Operating EBITDA 1,820 1,700 6.8% 0.0%



-13.4%

-6.6%

- of which mature markets - of which emerging markets
© 2012Holcim Ltd/Switzerland
402 404 4.6% 0.0% -4.3% 0.3%
1,418 1,297 7.4% 0.0%

-15.9% -8.5%
36
Financialresults2011
Financial indicators
Financial indicators 2009 2010 2011 Target
Operating

EBITDA

margin

(%)

for:
-



Cementitious



materials



28.4

26.9



24.3







33



-



Aggregates



19.7



21.2

20.7







27



- Other construction materials and services

3.7

2.8

2.5





8

ROE

(%)



8.6



6.4



1.6













13-15

RONOA



(%)



9.2



8.4



6.6

15-18



Gearing



(%)



62.8



53.8



58.8

80-100



Funds



from



operations/Net



financial



debt



(%)

27.6



31.3



26.4



>



25



Net



financial



debt/EBITDA

(X)



2.6



2.3



2.7









<



2.8

EBITDA



net



interest



coverage



(X)



7.3



6.1

4.2



>5

EBIT



net



interest



coverage



(X)



4.7

3.7



2.2



>3

Long-term



corporate



credit



rating

(February



2012)

2009 2010 2011



Current
Standard



&



Poor's



BBB



BBB



BBB



BBB

Fitch

BBB

BBB

BBB

BBB

Moody's



Baa2









Baa2

Baa2









Baa2



37
© 2012Holcim Ltd/Switzerland
Financialresults2011
Cement – Price/volume variances per region
Domestic cement prices
+/- 2010/2011 *
Domestic clinker and
cement volumes
+/- 2010/2011

Europe

1
3.1% 1.9%
Belgium -4.0% 10.7%
France -2.1% 10.6%
Germany

2
Switzerland 0.2% 4.4%
Italy 5.2% -10.7%
Hungary -9.2% -21.4%
Czech Republic -7.6% -9.0%
Slovakia

3
-3.9% -0.3%
Croatia -7.4% 1.2%
Romania -1.4% 7.3%
Bulgaria -1.3% 1.6%
Serbia -4.8% -3.9%
Russia 33.0% 21.8%
Azerbaijan 1.7% 3.1%
Spain 3.7% -22.8%
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies

1
Weightedaverage

like-for-like

2

Notyetpublishedlocally

3
Incl.
Austria

38
© 2012Holcim Ltd/Switzerland
Financialresults2011
Cement
–
Price/volume

variances

per

region
Domestic cement prices
+/- 2010/2011 *
Domestic clinker and
cement volumes
+/- 2010/2011
North America
1
-3.7% 2.9%
Canada 0.0% -1.8%

USA -4.6% 4.0%
Latin America
1
4.8% 6.7%
Mexico 1.5% 1.4%
El Salvador 5.0%

2
14.5%
Costa Rica -4.3%

2
-8.8%
Nicaragua 3.4%

2
17.2%
Colombia 7.7% 17.5%
Ecuador 4.2%

2
8.0%
Brazil 6.0% 1.0%
Chile
3
Argentina
3
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies
1

Weightedaveragelike-for-like
2
Calculation

inUSD
3
Notyetpublishedlocally
39
©

2012Holcim

Ltd/Switzerland
Financialresults2011
16
Cement – Price/volume variances per region
Domestic

cement

price
s
+/-

2010/2011

*
Domestic

clinker

and
cement

volumes
+/-

2010/2011
Africa

Middle

East

1
1.3% -
2.1%
Morocco

2
Lebanon
2
Indian Ocean -0.1%
3.0%
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies
1

Weightedaveragelike-for-like
2

Notyetpublishedlocally
40
© 2012Holcim Ltd/Switzerland
Financialresults2011
Cement – Price/volume variances per region
Domestic cement price
s
+/- 2010/2011 *
Domestic clinker and
cement volumes
+/- 2010/2011
Asia Pacific

1
7.9%
5.8%
India 9.1%
9.1%
Sri

Lanka 3.1%
12.3%
Bangladesh 6.2%
3.5%
Thailand 8.9%
5.5%
Vietnam 22.8% -
7.0%
Malaysia 0.7%
11.7%

Indonesia

2
Philippines -5.9% -
5.3%
Australia 1.1% -
0.8%
New

Zealand 2.5% -
2.8%
Group

1
4.0%
5.5%
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies
1

Weightedaveragelike-for-like
2

Notyetpublishedlocally
41
© 2012Holcim Ltd/Switzerland
Financialresults2011
Aggregates – Price/volume variances per region
Domestic

aggregates

prices
+/-

2010/2011

*
Domestic

aggregates
volumes
+/-

2010/2011
Europe 1.8%
3.3%
United Kingdom
1
4.1%
0.4%
Belgium 2.9%
7.3%
France 1.4%
28.5%
Germany

2
Switzerland -2.3%
7.5%
Italy -9.6% -
20.8%

Spain -7.4% -
12.1%
North

America 4.6%
2.4%
Canada 0.5%
9.6%
United States 7.9% -
2.1%
Asia

Pacific 3.5%
12.6%
Indonesia
2
Australia 8.8%
13.2%
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies
1

AggregateIndustriesUKincl.exports
2

Notyetpublishedlocally
42
© 2012Holcim Ltd/Switzerland
Contact information and event calendar
Financialresults2011
Contact information

Corporate Communications
Phone

+41 58 858 87 10
Fax +41 58 858 87 19

Investor Relations
Phone

+41 58 858 87 87
Fax +41 58 858 80 09

www.holcim.com/investors
Mailing list:
www.holcim.com/subscribe
© 2012Holcim Ltd/Switzerland
Event calendar
April 17, 2012 General meeting of shareholders
May 9, 2012 Results for the first quarter 2012
August 15, 2012 Half-year results for 2012
September 3/4, 2012

Investor &Analyst Day 2012
November 7, 2012 Press and analyst conference for
the third quarter 2012
43
Financialresults2011
17
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.
44
© 2012Holcim Ltd/Switzerland
18
Cement – Price/volume variances per region
Domestic cement price
s
+/- 2010/2011 *
Domestic clinker and
cement volumes
+/- 2010/2011
Asia Pacific

1
7.9%
5.8%
India 9.1%

9.1%
Sri

Lanka 3.1%
12.3%
Bangladesh 6.2%
3.5%
Thailand 8.9%
5.5%
Vietnam 22.8% -
7.0%
Malaysia 0.7%
11.7%
Indonesia

2
Philippines -5.9% -
5.3%
Australia 1.1% -
0.8%
New

Zealand 2.5% -
2.8%
Group

1
4.0%
5.5%
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies

1

Weightedaveragelike-for-like
2

Notyetpublishedlocally
41
© 2012Holcim Ltd/Switzerland
Financialresults2011
Aggregates – Price/volume variances per region
Domestic

aggregates
prices
+/-

2010/2011

*
Domestic

aggregates
volumes
+/-

2010/2011
Europe 1.8%
3.3%
United Kingdom
1

4.1%
0.4%
Belgium 2.9%
7.3%
France 1.4%
28.5%
Germany

2
Switzerland -2.3%
7.5%
Italy -9.6% -
20.8%
Spain -7.4% -
12.1%
North

America 4.6%
2.4%
Canada 0.5%
9.6%
United States 7.9% -
2.1%
Asia

Pacific 3.5%
12.6%
Indonesia
2
Australia 8.8%

13.2%
*Ifnototherwiseindicatedcalculationbasedonlocalcurrencies
1

AggregateIndustriesUKincl.exports
2

Notyetpublishedlocally
42
© 2012Holcim Ltd/Switzerland
Contact information and event cale
ndar
Financialresults2011
Contact information
Corporate Communications
Phone

+41 58 858 87 10
Fax +41 58 858 87 19

Investor Relations
Phone

+41 58 858 87 87
Fax +41 58 858 80 09

www.holcim.com/investors
Mailing list:
www.holcim.com/subscribe
© 2012Holcim Ltd/Switzerland

Event calendar
April 17, 2012 General meeting of shareholders
May 9, 2012 Results for the first quarter 2012
August 15, 2012 Half-year results for 2012
September 3/4, 2012

Investor &Analyst Day 2012
November 7, 2012 Press and analyst conference for
the third quarter 2012
43
Financialresults2011
Asia Pacific – mature and emerging market
highlights
Million

CHF
+/-
LFL

CIS

FX

Total
Cement volumes (mt) 71.4 75.6 5.8% 0.1% 5.9%
- of which mature markets
- of which emerging markets
Aggregates volumes (mt)
- of which mature markets
- of which emerging markets

Ready-mix volumes (mm
3
)
- of which mature markets
- of which emerging markets
4.7 4.7 -1.0% 0.0% -1.0%
66.7 70.9 6.3% 0.1% 6.4%
26.4 29.7 12.6% 0.0% 12.6%
23.2 25.9 11.8% 0.0% 11.8%
3.2 3.8 18.7% 0.0% 18.7%
12.7 13.0 2.8% 0.0% 2.8%
5.8 5.8 -1.1% 0.0% -1.1%
6.9 7.2 6.1% 0.0% 6.1%
Net sales 7,958 8,001 14.2% 0.0%



-13.7%

0.5%
- of which mature markets
- of which emerging markets
2,319 2,431 9.3% 0.0% -4.5% 4.8%
5,639 5,570 16.2% 0.1%

-17.5% -1.2%
Operating EBITDA 1,820 1,700 6.8% 0.0%

-13.4%

-6.6%

- of which mature markets
- of which emerging markets
© 2012Holcim Ltd/Switzerland
402 404 4.6% 0.0% -4.3% 0.3%
1,418 1,297 7.4% 0.0%

-15.9% -8.5%
36
Financialresults2011
Financial indicators
Financial indicators 2009 2010 2011 Target
Operating

EBITDA

margin

(%)

for:
-



Cementitious

materials



28.4



26.9



24.3







33



-

Aggregates



19.7



21.2



20.7







27



- Other construction materials and services

3.7

2.8

2.5





8

ROE



(%)



8.6



6.4



1.6

13-15



RONOA



(%)



9.2



8.4



6.6

15-18



Gearing



(%)



62.8



53.8

58.8









80-100



Funds



from



operations/Net



financial

debt



(%)



27.6



31.3



26.4



>



25

Net



financial



debt/EBITDA



(X)



2.6



2.3



2.7

<



2.8



EBITDA



net



interest



coverage



(X)

7.3



6.1



4.2



>5

EBIT



net



interest



coverage

(X)



4.7



3.7



2.2



>3

Long-term



corporate



credit

rating

(February



2012)

2009 2010 2011



Current
Standard



&



Poor's



BBB

BBB



BBB



BBB



Fitch

BBB

BBB

BBB

BBB

Moody's



Baa2

Baa2









Baa2









Baa2

37
© 2012Holcim Ltd/Switzerland
Financialresults2011