Holcim in Asia

Paul Hugentobler – Executive Committee Member Mumbai, September 26, 2007

© Holcim Ltd 2007

Investor/Analyst Capital Market Event

Contents
Regional overview South Asia ASEAN Emerging trends in Asia

2

© Holcim Ltd 2007

Investor/Analyst Capital Market Event

Regional overview – Holcim Asia

Huaxin Cement Co. Ltd

Holcim (Philippines) Ltd

ACC Ltd ACL Ltd Holcim (Indonesia) Ltd Holcim (Lanka) Ltd Holcim (Bangladesh) Ltd

Siam City Cement Public Co. Ltd Holcim (Vietnam) Ltd Jurong Cement Ltd Holcim (Singapore) Ltd Holcim (Malaysia) Sdn Bhd Plant Grinding station Terminal 3

© Holcim Ltd 2007

Investor/Analyst Capital Market Event

Regional overview – Paul Hugentobler area Holcim (Bangladesh) Ltd Siam City Cement Public Company Ltd Holcim (Vietnam) Ltd Holcim (Malaysia) Sdn Bhd Holcim (Singapore) Ltd Jurong Cement Ltd ACC Ltd ACL Ltd Holcim (Lanka) Ltd Holcim (Indonesia) Ltd Plant Grinding station Terminal 4 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

Contents Regional overview South Asia ASEAN Emerging trends in Asia 5 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

with pan Indian presence Tikaria Tik aria Kymore Kym ore Ropar Bathinda Gagal Ga Darlaghat Ro Darlag gal hat Bathi par Roorkee nda Rabriyawas P a li Lakheri Lak heri Farakka Kodinar Surat Mumbai Damodar Sindri Si Sankrail Chaibasa nd Bhatapara ri Bhata Barg Ja Bargarh para arh Chanda Jamulmu Cha Chandra l nda Chandrapur pur W ad i 14 cement plants 8 grinding stations 2 ports and 1 rail terminal Wadi Madukkarai Madukk arai Integrated Plant Grinding Station Terminal ACC ACL Combined cement grinding capacity of 45 mt by year end 2007 Combined market share of ~24% 6 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .India – Holcim positions Positions Comments Second largest cement producer.

which could propel the GDP growth rate from the current 7-8% to higher than 8% on a sustained basis Industry / Market 146 million tons cement consumption in 2006. housing will remain main demand segment 7 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .India – Macro environment and cement market Macro Economics and Politics India has the potential to witness a major infrastructure and manufacturing boom. expected to grow at 9 to 10% Industry will have ~165 million tons capacity by year end 2007 with announced capacity additions of ~110 million tons over the next 5 years Future development Variance in growth between States and shift towards higher infrastructure.

India – Holcim growth potential and plans Holcim Growth potential In order to sustain and improve their market shares in India’s high growth environment. ACC and ACL have planned ~28 million tons capacity additions till 2011 Holcim Plans Integrated cement plant and grinding station projects under construction and in the development pipeline: North : ~14 million tons South West : ~9 million tons East : ~5 million tons Expansion into RMX Assessment of opportunities in aggregates and special concrete products 8 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

3 mt to absorb clinker capacity in South-East Asia Export into North-Eastern India States 9 Investor/Analyst Capital Market Event Dhaka Narayangonj Mongla Holcim Grinding Station © Holcim Ltd 2007 .Bangladesh – Holcim positions Positions Comments Market growth of 6-7% p.a. with total volume of 9 mio tons in 2007 4th largest cement producer in Bangladesh with ~8% market share 3 grinding stations with total cement capacity of 1.

Bangladesh – Macro environment and cement market Macro Economics and Politics Sustainable GDP growth expected after political environment stabilized Industry / Market All cement requirement is based on imported clinker (with exception of Lafarge importing limestone from India) Consolidation of industry capacity expected to happen slowly Future development Future growth significantly driven by infrastructure Housing segment remains key market 10 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

Bangladesh – Holcim growth potential and plans Holcim Growth potential Increase market penetration throughout Bangladesh Holcim plans to: Promote low cost housing and related cement applications Enter RMX market in JV with leading construction companies in Dhaka Take advantage of proximity to export into India 11 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

Sri Lanka – Holcim positions Positions Jaffna Comments Largest cement producer in Sri Lanka Trincomalee Puttalam 1 integrated cement plant 1 grinding station 1 bulk terminal (2 in 2009: Trincomalee) Kandy Colombo Galle Combined cement capacity of 1.6 mt Combined market share of ~39% 12 Integrated Plant Grinding Station Terminal Holcim (Lanka) ACL City © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

a. National capacity amounts to 4. cement demand rose 10% to 3.Sri Lanka – Macro environment and cement market Macro Economics and Politics Despite the fact that the Cease Fire Agreement of 2002 is defunct.8 mt and is expected to grow at ~7% p.6 mt with 4 international players supplying 70% of the demand Future development Considering announced projects.2 mtpa cement 13 © Holcim Ltd 2007 Investor/Analyst Capital Market Event . GDP is forecast to grow at a moderate ~5% during the years ahead Industry / Market In 2006. national capacity is expected to go up to 5.

Holcim is well poised to benefit from this growth.Sri Lanka – Holcim growth potential and plans Holcim Growth Potential Market shows a steady growth of 7% p. sustaining its market share and the position of market leader Holcim plans to: Keep pace with Sri Lanka’s cement demand by expanding footprint to East and increasing clinker capacity in Puttalam Integrate Holcim Lanka and Ambuja Operations 14 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .a.

Contents Regional overview South Asia ASEAN Emerging trends in Asia 15 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

Thailand – Holcim positions Positions Comments Through its participation in SCCC.8 mt Market share of ~27% Integrated Plant Grinding Station Terminal SCCC 16 © Holcim Ltd 2007 Investor/Analyst Capital Market Event . Holcim controls 1 cement plant with single largest location in the country 1 bulk terminal Total cement capacity of 14.

2006) Thailand cement capacity is 56.3 mt with ~27 mt overcapacity.Thailand – Macro environment and cement market Macro Economics and Politics Expected GDP growth for 2007 is at 4%. lower than last year due to energy costs and political instability Expected GDP growth for 2008 is at ~4.5% Industry / Market Cement demand in 2007 at ~29. half of it being exported Future developments / Emerging trends Competition in cement market remains severe Producers will differentiate on service and try to secure market share through expansion into RMX 17 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .0 mt (-2% vs.

the main effort is on securing and enhancing domestic market penetration. Laos. Singapore) 18 © Holcim Ltd 2007 Investor/Analyst Capital Market Event . Vietnam. securing captive export markets and improving operational efficiency Holcim plans to: Reinforce SCCC position as “solution provider” by focusing on expanded product range including dry mortars Further improve operational efficiency Continued expansion into RMX and entering aggregates in Greater Bangkok area Strengthen regional integration of SCCC as key source to supply regional deficit markets (Cambodia. Bangladesh.Thailand – Holcim growth potential and plans Holcim Growth potential Given overcapacity.

Vietnam – Holcim positions Positions Comments Second largest cement producer in Vietnam with national market share of ~10% Presence in South Vietnam with total cement capacity of 4.1 bulk terminal in Cat Lai and 1 grinding station in Thi Vai Integrated Plant Grinding Station Terminal Holcim 19 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .6 mt from 1 integrated cement plant in Mekong.

Vietnam – Macro environment and cement market Macro Economics and Politics Robust GDP growth backed by stable government Industry / Market Impressive cement demand growth at ~9% on average Built up capacity in North Vietnam will lead to oversupply situation Industry fragmentation likely to put pressure on market Future developments Strong growth fuelled by increasing urbanization and infrastructure RMX will become the dominant channel Aggregates and sand become critical resources 20 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

Vietnam – Holcim growth potential and plans Holcim Growth potential Increase clinker / cement capacity to supply growing demand Holcim plans to: Expand capacity and maintain cost leadership in South Vietnam Accelerate RMX integration in HCMC area Differentiate value offering in industrial segments Acquire aggregates and sand reserves in Vietnam and Cambodia 21 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

3 mt National market share of ~14%.Indonesia – Holcim positions Positions Comments Holcim is the 4th largest cement producer in Indonesia and 3rd largest in Java 2 integrated cement plants with capacity of 8. and ~22% in Java Holcim is also the 2nd largest RMX producer in Jabotabek and expanding in the rest of Java 22 Integrated Plant Grinding Station Terminal Holcim © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

but needs to show tangible progress on his promises Industry / Market Demand was 31. The 3 main players supply 90% of the market.9 mt in 2006. Susilo Bambang Yudhoyono.3% The central bank’s expansionary policy is having a real effect on the economy. which bodes well for growth prospects in the year ahead President. Growth has picked up in 2007 (8% yoy) and is expected to continue at 6%. Future developments / Emerging trends Main players with expansion plans 23 © Holcim Ltd 2007 Investor/Analyst Capital Market Event . remains popular.Indonesia – Macro environment and cement market Macro Economics and Politics 5.5% GDP growth 2006 and in 2007 to be ~6.

Indonesia – Holcim growth potential and plans Holcim Growth potential Indonesia is showing solid signs of economic recovery and cement consumption is forecasted to continue on a strong growth trend Holcim will participate in this growth Holcim plans to: Expand capacity to grow market share Achieve and maintain cost leadership in target markets of Java Expanding RMX and aggregates segment in Java Raising organizational capabilities at all levels via “Holcim Academy” – Differentiation through People! 24 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

5 million m3 and ~20% market share in RMX market 1 Mortar unit with ~28% market share in Singapore Captive import markets 25 Kuala Lumpur Singapore Integrated Plant Grinding Station Terminal Holcim © Holcim Ltd 2007 Investor/Analyst Capital Market Event .2 mt and ~5% Market share in Malaysia but ~32% in Johor 9 RMX plants in Singapore with total capacity of 2.Malaysia and Singapore – Holcim positions Positions Comments One grinding station in South Malaysia with cement capacity of 1.

followed by mortar business and concrete products Future developments Malaysian prices expected to increase as per Government automatic mechanism Further vertical integration Singapore maturing market offers opportunity for dry mortar and high-end concrete products © Holcim Ltd 2007 26 Investor/Analyst Capital Market Event .Malaysia and Singapore – Macro environment and cement market Macro Economics and Politics Malaysia with 3.5% GDP growth per year Booming construction in Singapore backed by government development plan Industry / Market Malaysian market increase by 2% mainly in South Singapore construction boom to boost RMX market.

reinforced by the acquisition of Jurong Cement Ltd. focus is on RMX and Mortar business expansion. Singapore in 2007 Holcim plans in Malaysia and Singapore to: Enhance bulk market share and increase vertical integration in South Malaysia Accelerate RMX expansion in Singapore Expand mortar business and enter concrete products Acquire aggregates and sand position to supply Singapore market 27 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .Malaysia and Singapore – Holcim growth potential and plans Holcim Growth potential In South Malaysia. growth potential in RMX In Singapore.

Contents Regional overview South Asia ASEAN Emerging trends in Asia 28 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .

increasing need for infrastructure 29 © Holcim Ltd 2007 Investor/Analyst Capital Market Event . rail and river. road.Asia is transforming itself today Migration and Urbanization Rapidly growing megacities as economic growth forces people to move from rural to urban areas. increasing need for infrastructure and housing Mobility and Transportation Connectivity improvements at all network levels including ports.

increasing need to serve the “Bottom of the Pyramid” Growing population. shifts in demographics. high economic growth provide ample opportunities for Holcim to further extend its footprint along its Value Chain 30 © Holcim Ltd 2007 Investor/Analyst Capital Market Event .Asia is transforming itself today Scarcity of Water Huge pressure on water resources result in lower agricultural outputs with movement of resources towards manufacturing and services Growing Income Disparities High growth not being distributed evenly creating the need for low cost housing across Asia.

Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the Group’s future business. macroeconomic and political trends. (2) legislative and regulatory developments. Holcim assumes no obligation to update or alter forward-looking statements whether as a result of new information. development and economic performance. (5) delay or inability in obtaining approvals from authorities. (8) adverse publicity and news coverage. (7) litigation. (4) fluctuations in currency exchange rates and general financial market conditions. uncertainties and other important factors. Such statements may be subject to a number of risks. (3) global. which could cause actual development and results to differ materially from the statements made in this presentation. 31 © Holcim Ltd 2007 Investor/Analyst Capital Market Event . future events or otherwise. such as but not limited to (1) competitive pressures. (6) technical developments.

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