AUD Bond Issue July Theophil H. Schlatter, CFO Bernhard A. Fuchs, Head Investor Relations Urs Berger, Corporate Financing & Treasury

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1 Theophil H. Schlatter, CFO Bernhard A. Fuchs, Head Investor Relations Urs Berger, Corporate Financing & Treasury

2 Content Holcim in a snapshot and strategy Update on major latest acquisitions Presence in Australia Key financials and credit profile Summary of transaction terms of the Australian Dollar Bond Issue Conclusions and outlook

3 Holcim in a snapshot One of the world s leading supplier of cement, aggregates and ready-mix concrete Global Group with operations on all continents in over 70 countries providing significant geographic diversification As at 31 December 2005, Holcim had Net sales of CHF 18,5 billion Operating EBITDA of CHF 4,6 billion Cash Flow from operating activities of CHF 3,4 billion Employees of around cement plants 398 aggregate plants 989 ready-mix concrete plants 111 Asphalt plants Other construction materials and services 33% Sales 2005 Aggregates Concrete 11% Cement Clinker 56% 3

4 Holcim in a snapshot cont. Step changes in the last 18 months through investments in the UK and US (Aggregate Industries), in India (The Associated Cement Company, Ambuja Cement Eastern and Gujarat Ambuja Cements) and in China (Huaxin Cement Company) Solid financing of expansion including equity (CHF 1,7 billion in 2006) Strong operational performance increase over the last years Proven track record in delivering on managements promises S&P and Fitch Ratings: BBB+, Outlook Stable 4

5 Holcim Corporate Management Structure Holcim Board of Directors Audit Committee Markus Akermann CEO Governance, Nomination & Compensation Committee Benoît-H. Koch Hansueli Heé Thomas Knöpfel Paul Hugentobler Tom A. Clough Theophil H. Schlatter CFO North America UK, Norway Mediterranean 1 International Trade Europe 2 Latin America 3 Mexico South Asia ASEAN 4 East Asia 5 Oceania South & East Africa Bill Bolsover Javier de Benito Area Management Urs Böhlen Area Management Bernard Terver Area Management Gérard Letellier Area Management Aggregates & Construction Materials, Sustainable Development Cement Manufacturing Legal & Compliance Strategy & Risk Management, Communication Commercial, Procurement, IT Human Resources, Branding Finance & Controlling Bill Bolsover Aggregates & Construction Materials Services Jacques Bourgon Cement Manufacturing Services Roland Köhler Strategy & Risk Management Stefan Wolfensberger Commercial Services Beat Fellmann Deputy CFO Executive Committee 1 Incl. Iberian Peninsula; 2 Excl. Iberian Peninsula, UK and Norway; 3 Excl. Mexico; 4 Excl. Philippines; 5 Incl. Philippines 5

6 Holcim commitment to Corporate Governance 2001 today 1. Chairman & CEO functions segregated No Yes 2. Audit Committee (all 3 members independent) No Yes 3. Governance, Nomination & Compensation No Yes Committee (3 members out of 4 independent) 4. Single share: one share one vote No Yes 5. Business Risk Management Yes Yes 6. Internal Audit Partly Yes 7. Corporate Governance Reporting No Yes 8. Corporate Sustainable Development Report No Yes 9. Assessment of Board, Committees and CEO No Yes 10. Policies and value statements (Code of Conduct, Fair Competition) No Yes 6

7 Holcim's Strategy House base for value creation Goal Creation of Value Strategy Product Focus Geographic Diversification Local Management Global Standards Mindsets Sustainable Environmental Performance Better Cost Management Permanent Marketing Innovation Human Resources Excellence Corporate Social Responsibility Base People 7

8 Market maturity defines investment focus Added value through business integration N. America, UK Eastern Europe France, Spain Value Added Businesses India Thailand Aggregates Ready-mix concrete Cement Emerging markets Transition markets Mature markets Market maturity 8

9 To find the right positioning in the Holcim Value Chain Supply Basic Materials Processing Channels Transactional Transformational End- users Demand Applications and Construction Fields Cementitious Materials (cement, mineral components) Aggregates (sand, gravel, stone, recycled aggregates) Direct Sales Traders Wholesalers Retailers Direct Sales Ready -mix Concrete Concrete Products Mortars Asphalt General Contractors Self - builders Masons Civil Engineering A p p l i c a t i o n s Housing Commercial / Industrial Building Infrastructure 9

10 Key drivers for growth in our business external internal + Key growth drivers GDP per capita growth Population growth Construction activities, Infrastructure needs and consumer confidence Interest rates Holcim s proven growth strategy Internal growth coupled with margin expansion through better cost management and through value pricing Value chain of our business Growth through value creative acquisitions 10

11 Positioning Holcim s cement market portfolio Cumulated population growth 05-09E 12% 10% 8% 6% 4% 2% 0% -2% Western Europe 27.3 m t North America 22.3 m t Africa Middle East 18.8 m t Latin America 42.2 m t Mature markets Emerging markets Size of circles represents influenced capacity 2005 Asia Pacific excl. India and China 35.9 m t Eastern Europe 21.7 m t India m t China 22.0 m t Cement demand growth -4% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% GDP per capita (at PPP) CAGR 05-09E 1 Gujarat Ambuja Cements, Associated Cement Companies and Ambuja Cement Eastern capacity Sources: Holcim, US Census Bureau, Economist Intelligence Unit 11

12 Holcim s aggregate market portfolio Cumulated population growth 05-09E 12% 10% 8% 6% 4% North America 65.0 m t Africa Middle East 9.7 m t Latin America 11.7 m t Asia Pacific excl. India Asia 57.6 m t 3.2 m t India m t 2% 0% -2% -4% Europe 79.7 m t Mature markets Emerging markets Size of circles represents consolidated sales Eastern Europe 21.4 m t 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% GDP per capita (at PPP) CAGR 05-09E 1 including 9 month of Aggregate Industries Sources: Holcim, Economist Intelligence Unit 12

13 Balance between emerging and mature markets Mature markets Emerging markets Net sales in million CHF 18'468 Employees 59'901 5' % 29' %

14 Holcim seizing opportunities in emerging markets 100% 90% 80% Cement Capacity Net sales Operating profit Mature markets 70% 60% 50% 40% 30% 20% 10% 0% Emerging markets

15 Positions in Europe Cement plant Grinding plant/ terminal Aggregates Participation: Cement plant Group cement capacity (Europe): 47.2 million t; further 1.8 million t with partners 15

16 Positions in North America 1 1 Cement plant Grinding plant/ terminal Aggregates Under construction Group cement capacity (North America): 22.3 million t 16

17 Positions in Latin America Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Group cement capacity (Latin America): 34.9 million t; further 7.3 million t with partners 17

18 Positions in Africa Middle East Cement plant Grinding plant/terminal Aggregates Participation: Grinding plant/terminal Under construction Group cement capacity (Africa Middle East): 15.3 million t; further 3.5 million t with partners 18

19 Positions Asia Pacific Cement plant Grinding plant/terminal Aggregates Participation: Cement plant Grinding plant/terminal Group cement capacity (Asia Pacific): 73.7 million t; further 33.0 million t with partners (June 2006) 19

20 License to operate SD a business case High standards of ecological and social performance are essential to maintain the license to operate Ambitious sustainable development (SD) targets applied across the Group Holcim is both a global company and a truly local player SD performance is widely recognized 20

21 Human capital hire, train and retain best people Local management excellence is a pillar of our success 59 nationalities amongst the top 1,200 executives EBITDA / HVA based remuneration package Corporate development programs Continuous learning right through to shop floor level 21

22 Content Holcim in a snapshot and strategy Update on major latest acquisitions Presence in Australia Key financials and credit profile Summary of transaction terms of the Australian Dollar Bond Issue Conclusions and outlook

23 Key attractions of Aggregate Industries Positioning Mineral Reserves Down-stream Expansion Financial Performance Well positioned in the most attractive aggregate markets UK and US have excellent aggregates market characteristics Strong long-term asset base Huge mineral reserves in the US and UK (more than 70 years) Well positioned in the growing aggregates recycling business State-of the art production facilities Good position in attractive down-stream channels Securing own aggregate volumes Producing additional cash flows for further growth Outstanding financial track record Strong cash flow and returns Prospects for continuous growth Organisation Lean, regional and responsive organisation/structure Respected management team One of the most respected players in customer service 23

24 Rationale for strengthening aggregates and RMX In mature markets and selected emerging markets aggregates make strategic and economic sense For Holcim cement and aggregates are complementary Together they offer a good risk / return balance in terms of product, geography and cash flow stability Latest expansion in the UK (Foster Yeoman) and US (Meyer Material Company) further strengthen the value chain 24

25 China - growth in emerging markets Enter China Consolidation on provincial level Key elements for the cement industry of the 11 th Five Year Plan From quantity to quality Focus on environmental issues Energy efficiency and security Huaxin Affiliated with Huaxin since 1999 Expanded from 3 Mtpa in 1999 to 22 Mtpa at the end of 2005 All modern, dry capacity no shaft kilns Operating with 6,600 people Net sales in 2005 of USD 330m, EBITDA USD 60m 25

26 China #1 cement market Yangtze river Yangtze river Wuhan Shanghai Participation: Plant Grinding station Terminal City Wuhan Beijing Shanghai 26

27 China our footprint In 1999, Holcim acquired a 23.4% participation in Holcim Cement Company ( HCC ). In 2005, Holcim increased its stake to 26.1%. The partnership between Holcim and HCC has developed favorably for both sides Holcim intends to subscribe to a private placement of 160 million Huaxin A shares taking Holcim s shareholding to 50.3%. This private placement is subject to approval by the relevant Chinese authorities The new shares are to be issued at a price not lower than 20% above the average price of the listed Huaxin A shares during the 20 trading days prior to the announcement on 7- Mar-2006 of the Board s resolution. Holcim intends to invest about USD 125 million for the acquisition of the 160 million new A shares of HCC and to consolidate a net financial debt of approximately USD 300 million 27

28 India growth in emerging markets Enter India Consolidation well advanced Strategic alliance with strong local partners is the traditional Holcim way to establish presence in a new emerging market ACC GACL ACEL ACC, GACL and ACEL are strong and respected companies Holcim is ACC s and GACL s biggest shareholder with promoter status Pan Indian footprint established in twelve months 28

29 India #2 cement market ACC and ACEL Cement plant Grinding plant Terminal Ready-mix concrete facility Delhi GACL Cement plant Grinding plant Terminal Market shares 2005E ACC/GACL/ ACEL 24% Mumbai Calcutta Others 43% Madras Lafarge 3% India Cements 5% Grasim/ Ultra Tech 25% Sources: Companies, Cement Manufacturers Association, 2005E 29

30 India ownership structure after public offer Share purchase agreement and shareholders agreement Others Family Holcim 76.2% 9.0% 85.2% 14.8% 67.0% GACL 14m tpa 33.0% ACIL Planned merger 97.0% ACEL 2m tpa 33.6% ACC 18m tpa Existing Put Call Option Agreement / SA between Holcim and GACL (for 33% stake in ACIL) 30

31 Content Holcim in a snapshot and strategy Update on major latest acquisitions Presence in Australia Key financials and credit profile Summary of transaction terms of the Australian Dollar Bond Issue Conclusions and outlook

32 Holcim in Australia On 1 st June 2003, Holcim merged its Australian cementitious products business (Queensland Cement) with Australian Cement Holdings to form Cement Australia Ownership is 50% Holcim, 25% Rinker, 25% Hanson Cement Australia is now Australia s largest cement company with >45% market share. It is also the largest supplier of supplementary cementitious materials (flyash and slag), and bagged drymix products. It has the largest industrial lime plant in north eastern Australia, at Gladstone 32

33 Holcim in Australia cont. The company owns two of Australia s four lowest cost cement plants, at Gladstone in QLD, and at Railton in TAS, plus a smaller well positioned plant at Kandos in NSW. It can supply customers competitively across the entire eastern states (80% of Australian market) ~ 70% of the company s cementitious products are sold under long term contract to the concrete operations of Rinker and Hanson Holcim proportionately consolidates its share of Cement Australia 33

34 Holcim in Australia main facilities Industrial Lime & Special Cements: 250 Ktpa lime plant at Gladstone 100 Ktpa special cement plant at Rockhampton Flyash: Flyash processing plants at Tarong, Swanbank, Gladstone and Callide in QLD (100% owned) and Eraring and Mt Piper in NSW (50%) owned Ships: 15500t bulk (clinker) 11200t self discharge (cement/flyash) 14500t self discharge (cement/flyash) Key: Red: former QCL assets Grey: former ACH assets Object Legend Plant Grinding station Terminal Townsv ille, Holcim 30Kt Gladstone 1.6Mtpa clinker QLD Brisbane Bulwer Island (clinker (Grinding grinding St.) station) 1.2Mtpa NSW Kandos Newcastle 28Kt clinker 450Ktpa Glebe 30Kt Sydney Port Kembla 200Ktpa (slag grinding) (50% owned) VIC Port Melbourne 80Kt (50%owned) currently being expanded to 120Kt Railton 1.1Mpta TAS 34

35 Australian Cement Industry Cementitious Product Demand 2005 was a record year for sales of cementitious products in Australia. This was particularly driven by strong growth in QLD and WA. 000 tonnes 12,000 Actual Cementitious Demand 11,000 10,000 9,000 8,000 7,000 6,000 5,

36 Content Holcim in a snapshot and strategy Update on major latest acquisitions Presence in Australia Key financials and credit profile Summary of transaction terms of the Australian Dollar Bond Issue Conclusions and outlook

37 Financial indicators Target Operating EBITDA margin (%) ROE (%) RONOA (%) Gearing (%) Funds from operations/ Net financial debt (%) > 25 EBITDA net interest coverage > 5 EBIT net interest coverage > 3 Standard & Poor's Rating BBB+ BBB+ BBB+ Fitch Rating BBB+ 1 restated in line with new and revised IFRS, effective January 1, on a like-for-like basis 37

38 Key financial figures Million CHF Full Year 1st Quarter +/ LFL CIS FX in CHF Net sales 18,468 2,730 4, % 40.5% 11.4% 69.5% Operating EBITDA 4, , % 15.5% 11.5% 52.1% Operating profit 3, % 2.9% 12.2% 52.6% Net income 1, % 69.6% Cash flow from operating activities 3, % % -6.5% % EPS in CHF % 39.6% Cash EPS 2 in CHF % 36.1% 1 Adjusted in line with IAS 21 amended 2 excludes the amortization of goodwill and other intangible assets 38

39 Operating EBITDA Million CHF Margin 25.1% 24.1% 25.6% * 21.6% 1, Like-for-Like (LFL) % % % Change in structure 7 1.2% % % Forex movements % % % Total change % % % * operating EBITDA margin on a like-for-like basis Q Q Q

40 Operating EBITDA by region Million CHF Q1 2004* Q Q * adjusted to exclude certain Group charges Q1 05/Q1 06 LFL Change in Currency Total structure Europe 28.6% 35.4% 2.3% 66.3% North America 137.2% -74.4% 16.3% 79.1% Latin America 16.8% 0.0% 14.8% 31.6% Africa Middle East 14.2% -3.1% 7.8% 18.9% Asia Pacific 0.0% 70.1% 15.4% 85.5% Total 25.1% 15.5% 11.5% 52.1% 40

41 Financial position Million CHF 111.7% 89.1% 91.2% 11,659 13,027 14,250 12,693 15,418 14, Total shareholders' equity Net financial debt Gearing 41

42 Holcim Group debt maturity profile Average maturity above 4 years Group Holcim Q figures, million CHF* 5'000 4'500 4'000 Cash and marketable securities Unused committed credit lines Unused credit lines (incl. uncommitted) CHF million CHF million CHF million Mio. CHF 18'134 3'500 3'000 2'500 2'000 1'500 1' Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y > 10Y Loans Capital Market * Bonds issue of CHF 550 million in April 2006 and partial repayment of GBP 1.6 billion syndicated multi-currency facility in May 2006 is not included in maturity profile 42

43 Holcim s third party debt location 60% 50% 45% 45% 37% 31% 26% 29% 22% 40% 50% 55% 55% 63% 69% 74% 71% 78% Q Corporate level Operating companies 43

44 Holcim s financial risk management A risk-averse approach is pursued Liquidity risk Maintain a sufficient level of cash and unused credit lines to meet its liquidity requirements at all times Interest rate risk Steer effectively the fixed/floating ratio of net debt (currently 45:55) Foreign exchange risk Translation risk largely mitigated by corresponding financing in foreign currencies Due to local nature of the cement business transaction risk is limited Counterparty risk Constantly monitored 44

45 Content Holcim in a snapshot and strategy Update on major latest acquisitions Presence in Australia Key financials and credit profile Summary of transaction terms of the Australian Dollar Bond Issue Conclusions and outlook

46 Summary of terms for AUD bond issue Issuer: Holcim Finance (Australia) Pty Ltd Guarantor: Holcim Ltd Ratings (Fitch / S&P): BBB+ Outlook Stable Size of financing: Minimum AUD 260 million Issue maturity: 3 5 years Issue format: Fixed and/or floating rate notes Use of proceeds: Refinancing of existing AUD bonds and for general corporate purposes Start of bookbuilding: 17 July Pricing: Week beginning 17 July Settlement: 8 August 2006 Joint lead banks ABN AMRO, Deutsche Bank, NAB and bookrunners: 46

47 Content Holcim in a snapshot and strategy Update on major latest acquisitions Presence in Australia Key financials and credit profile Summary of transaction terms of the Australian Dollar Bond Issue Conclusions and outlook

48 Conclusions Holcim has a focus on core products and markets and a strategy with the overriding goal to create value Holcim has the best balanced geographical portfolio due to a proven and prudent acquisition strategy and first mover advantages Holcim has potential for growth and increased profitability with excellent positions in the most dynamic growth markets in terms of GDP and population growth Holcim issues AUD bonds: to refinance its outstanding bonds in Australia for general corporate purposes 48

49 Outlook 2006 Economic environment unlike to see any fundamental change in 2006 Holcim expects existing and newly consolidated companies to show a robust development Rising energy costs can be offset by price adjustments and efficient energy management. Internal operating EBITDA growth will be once again above the long-term average of 5 percent 49

50 Contact information and event calendar Contact information Investor Relations Phone Fax Corporate Financing & Treasury Phone Fax Event calendar 24 August, 2006 Half-year results November, 2006 Third quarter results 2006 Conference for press and analysts 28 Februar, 2006 Press and Analyst conference on annual results 2007 Mailing list: 50

51 Disclaimer THIS PRESENTATION IS FOR GENERAL INFORMATION AND CONVENIENCE PURPOSES ONLY AND DOES NOT CONSTITUTE A LEGAL INSTRUMENT. IN PARTICULAR, WITHOUT LIMITATION, IT DOES NOT CONSTITUTE A PUBLIC OR PRIVATE OFFERING, AN OFFER OF OR SOLICITATION FOR THE PURCHASE OR DISPOSAL OF, TRADING OR ANY TRANSACTION IN ANY SECURITIES (INCLUDING HOLCIM SECURITIES) OR OTHER OFFER OR SOLICITATION, PLACEMENT, PROSPECTUS, MEMORANDUM, CIRCULAR OR SIMILAR INSTRUMENT OR INVESTMENT ADVICE IN AUSTRALIA, CANADA, THE UNITED STATES OF AMERICA, THE EUROPEAN ECONOMIC AREA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE AND SWITZERLAND OR IN ANY OTHER COUNTRY AND/OR UNDER ANY APPLICABLE LAW OR JURISDICTION. INVESTORS MUST NOT RELY ON THIS INFORMATION FOR INVESTMENT DECISIONS. IN ADDITION, THIS PRESENTATION MAY CONTAIN FORWARD-LOOKING STATEMENTS AND STATEMENTS ON FUTURE DEVELOPMENTS. WE WISH TO CALL THE ATTENTION OF READERS TO THE FACT THAT SUCH FORWARD-LOOKING STATEMENTS ARE MADE WITHOUT ANY GUARANTEE AS TO THE FUTURE COURSE OF BUSINESS; THESE STATEMENTS INVOLVE RISKS AND UNCERTAINTIES. DUE TO A VARIETY OF FACTORS, THE REAL OUTCOMES MAY UNDER CERTAIN CIRCUMSTANCES DIFFER CONSIDERABLY FROM THE FORWARD-LOOKING STATEMENTS MADE HEREIN. THIS PRESENTATION MAY NOT BE COPIED OR FOWARDED TO ANY PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF HOLCIM. 51