First Quarter Interim Report 2005 Holcim Ltd

Transcription

1 First Quarter Interim Report 2005 Holcim Ltd Strength. Performance. Passion.

2 Key Figures Group Holcim January March Restated ±% ±% local currency Annual cement production capacity million t Sales of cement and clinker million t Sales of aggregates million t Sales of ready-mix concrete million m Net sales million CHF 2,730 2, Operating EBITDA million CHF Operating EBITDA margin % EBITDA million CHF Operating profit million CHF Operating profit margin % Net income million CHF Net income attributable to equity holders of Holcim Ltd million CHF Net income margin (share Holcim Ltd) % Cash flow from operating activities million CHF Cash flow margin % Net financial debt million CHF 13,027 6, Total Shareholders equity million CHF 11,659 10, Gearing 2 % Personnel ,554 46, Earnings per dividend-bearing share CHF Fully diluted earnings per share CHF Cash earnings per dividend-bearing share 3 CHF Principal key figures in USD (illustrative) 4 Net sales million USD 2,314 2, Operating EBITDA million USD Operating profit million USD Net income attributable to equity holders of Holcim Ltd million USD Cash flow from operating activities million USD Net financial debt million USD 10,857 6, Total shareholders equity million USD 9,716 9, Earnings per dividend-bearing share USD Principal key figures in EUR (illustrative) 4 Net sales million EUR 1,761 1, Operating EBITDA million EUR Operating profit million EUR Net income attributable to equity holders of Holcim Ltd million EUR Cash flow from operating activities million EUR Net financial debt million EUR 8,405 4, Total shareholders equity million EUR 7,522 6, Earnings per dividend-bearing share EUR As of December 31, Net financial debt divided by total shareholders equity. 3 Excludes the amortization of goodwill and other intangible assets. 4 Income statement figures translated at average rate; balance sheet figures at year-end rate. Key Figures 1

3 Seasonal factors put pressure on the construction industry in several regions. Strategic acquisitions in the UK, USA and India generate new growth potential. Geographic diversification is a strength Thanks to its worldwide market presence, Holcim achieved further volume and earnings growth in the first quarter of However, the result was depressed by strong increases in energy and transport costs and the continued depreciation of the US dollar. Poorer weather conditions than in the first quarter of 2004 and an early Easter had an adverse impact on construction activity in Europe and North America. Cement and clinker deliveries nonetheless increased by 1.8 percent. Ready-mix concrete sales volumes rose by 3.3 percent, shored up by strong results in Group regions Africa Middle East and Asia Pacific. Sales of aggregates decreased by 9.9 percent. The biggest declines in sales in this segment were in Europe and North America. Mainly as a result of currency translation, consolidated net sales decreased by 1.1 percent to CHF billion, and operating EBITDA was CHF 658 million (first quarter 2004: 694). Internal operating EBITDA declines in Europe ( 19.4 percent) and Latin America ( 12.3 percent) were largely offset by growth in North America (+62.1 percent), Africa Middle East (+34.8 percent) and Asia Pacific (+6 percent). Adjusted for currency and consolidation effects, this is reflected in a slight decline of 4.5 percent in internal operating EBITDA growth. By contrast, operating profit rose by 9.6 percent to CHF 411 million, and net income increased by 67.3 percent to CHF 169 million. This was brought about by additions to the scope of consolidation as well as changes under the new International Financial Reporting Standards (IFRS). Goodwill, which is no longer depreciated in accordance with IFRS, negatively impacted prior first quarter results by CHF 59 million. Despite higher financing costs, cash flow from operating activities increased to CHF 77 million (first quarter 2004: 60). Overall, the results for the first quarter were within our expectations. Construction activity in Europe held back by snowy winter In the first quarter of 2005, business in Europe was greatly impaired by heavy snowfalls and prolonged periods of frosty weather, which persisted until March in many places. Construction activity virtually ground to a halt for several weeks not only in the north of the continent, but also in Italy, Croatia and in large parts of southeastern Europe. Cement sales declined as a result, in some cases appreciably. As a consequence of the high volumes of deliveries during the mild winter last year, fluctuation was comparatively pronounced. Cement sales rose only in Spain, Romania and because of an acquisition in Bulgaria. On balance, there was a decline in cement deliveries in Group region Europe. Group region Europe s operating EBITDA decreased by 19 percent to CHF 175 million and internal operating EBITDA growth declined by 19.4 percent. In addition to the adverse weather conditions, stiffer competition in Belgium and northern Italy and persistent sluggish construction activity in Germany pressured the performance. 2 Shareholders Letter

4 Strong demand in North America The North American construction sector saw a seamless continuation of last year s positive trend. The United States witnessed a revival in commercial and industrial construction activity. Indeed, the number of new housing starts reached a 20-year peak. Additional stimuli came from the accelerated expansion and modernization of transport infrastructure, with cement consumption continuing to rise. Holcim US once again increased cement deliveries and improved sales prices in all market regions markedly in some instances. In Canada too, the construction sector continued to operate at a high level. St. Lawrence Cement increased domestic cement deliveries, but on balance volumes declined owing to delivery bottlenecks in the northeastern US. St. Lawrence Cement also saw a slight decline in sales of aggregates and ready-mix concrete, mainly owing to weather conditions. Group region North America accomplished yet another major step forward. Operating EBITDA increased to CHF 43 million (first quarter 2004: 29) together with impressive internal operating EBITDA growth of 62.1 percent. This gratifying result is also attributable to a combination of improved price levels and efficiency gains. The continued modernization of the production base and strict cost management are delivering the expected results. Mixed trend in Latin America Group region Latin America began the year in line with expectations. Cement deliveries increased supported by Cemento de El Salvador, which was newly consolidated as from the beginning of the year. At Holcim Apasco in Mexico, sales volumes decreased in the cement and ready-mix concrete segments owing to a weak construction sector, a tougher competitive environment and an early Easter. However, the decline was partially offset by increases in cement exports and clinker sales. In Costa Rica, the new kiln line at the Cartago plant facilitated a rise in production. This includes an increase in deliveries to the sister company in Nicaragua. Other Group companies in Central America essentially matched their year-back levels. A sharp upturn in cement deliveries was achieved in Ecuador and Venezuela, and Holcim Brazil also increased its sales thanks to a slight improvement in the economic situation. Sales of ready-mix concrete fell back somewhat as a result of market conditions and optimization of the sales network. With demand for construction materials still brisk across all segments in Argentina and Chile, Minetti and Cemento Polpaico were both able to expand deliveries of cement and ready-mix concrete. Operating EBITDA decreased overall by 12 percent to CHF 250 million and internal operating EBITDA growth was also negative, declining 12.3 percent. This reflects the lower sales volume in Mexico, an increase in competitive pressure accompanied by price discounts in Brazil and Colombia, and higher energy costs. Holcim has increased the shareholding in Cemento de El Salvador from 20.3 percent to 64.2 percent with a total investment of USD 220 million. The company has an annual installed capacity of 1.7 million tonnes of cement and strengthens the Group s market presence in Central America. Solid growth in Africa Middle East Holcim South Africa reported a sharp rise in cement sales. Our Lebanese Group company also saw a significant upturn in deliveries thanks to an increase in cement exports. Holcim Morocco maintained last year s solid performance despite heavy rainfalls. Egyptian Cement, however, could only partly offset the seasonal falloff in domestic sales by stepping up cement exports. Sales remained depressed in West Africa owing to political instability. Shareholders Letter 3

5 In terms of earnings, the Group region achieved significantly improved results. Operating EBITDA increased by 38 percent to CHF 127 million, and internal operating EBITDA growth reached 34.8 percent. With the exception of the West African countries, all Group companies contributed to the improved results. Particular mention should be made of Holcim South Africa, which virtually doubled operating EBITDA. In addition to an increase in cement sales, another positive factor here was an increase in demand for ready-mix concrete. To better meet dynamic market developments in the Middle East and Persian Gulf area, Holcim Trading opened a representative office in Dubai in the first quarter of Robust construction activity in Asia Pacific Virtually all Group companies in Asia Pacific benefited from sustained robust demand for construction materials and reported higher sales volumes. The exceptions were Holcim Philippines and Holcim Malaysia, where seasonal factors and tight budgets put a brake on public-sector construction activity and cement sales. The highest growth in cement sales was recorded by Siam City Cement in Thailand, followed by PT Semen Cibinong in Indonesia. Both Group companies benefited from a rise in domestic demand and were also able to export significantly more cement. Holcim Vietnam operated at the limit of its capacity, but thanks to additional grinding and logistics capacity near Ho Chi Minh City it was able to substantially increase cement output for consumers in the South of the country. Cement Australia and Holcim New Zealand also exceeded the already high delivery levels of the first quarter For the most part, consolidated cement deliveries by Group companies in Asia Pacific increased. In the aggregates segment, sales volumes decreased, contrasting with a marked increase in sales of ready-mix concrete. Operating EBITDA of Group region Asia Pacific remained unchanged at CHF 117 million (first quarter 2004: 117) despite generally weaker exchange rates, with internal operating EBITDA growth accounting for 6 percent. Key contributions came from Cement Australia as well as Group companies in Thailand, the Philippines and New Zealand. Strategic investments strengthen market position and offer new potential In the first quarter of 2005, Holcim made two key strategic investments which will generate important new impulses. In an initial transaction, Holcim acquired Aggregate Industries via a recommended public offer. With 650 sites in the UK and USA, Aggregate Industries is a leading and exceptionally well positioned producer of building materials. The company is also a major cement customer, with an annual consumption of some 3 million tonnes of cement. The integration of Aggregate Industries into the Holcim Group provides access to the aggregates, asphalt and ready-mix concrete segments in a number of key US markets as well as an opportunity to establish a foothold in the UK building materials sector, a market which is both important and profitable. Aggregate Industries is the owner of major strategic aggregates reserves for more than 70 years in geographically well situated locations. Holcim currently holds over 96 percent of the share capital of Aggregate Industries and in April 2005 initiated the procedure for the mandatory buyout of the remaining minority shareholders. 4 Shareholders Letter

6 In a parallel transaction, Holcim entered into a strategic partnership with Gujarat Ambuja Cements in India. This alliance was accomplished through Ambuja Cement India, in which Holcim has a 67 percent interest and Gujarat Ambuja Cements a 33 percent stake. With a 35 percent stake, this holding company is now the largest single shareholder of The Associated Cement Companies. It also holds 94 percent of the share capital of Ambuja Cement Eastern. India s second largest cement manufacturer, The Associated Cement Companies operates nationwide. Together with Ambuja Cement Eastern, it has 13 cement plants and 4 grinding stations with an annual installed capacity of over 20 million tonnes of cement. Holcim financed both investments with existing liquid resources and by drawing on firmly committed credit facilities. In this context, treasury shares worth approximately CHF 430 million were successfully placed in the market during the period under review. These sizable investments have increased our gearing to 112 percent. However, our target range of 80 to 100 percent should be reached again by the end of Further growth in 2005 Our guidance for the 2005 business year published in March 2005 remains valid. Still intact construction activity will further support demand at a high level in most countries. Holcim is endeavoring to further enhance efficiency within the Group. The Board of Directors and Executive Committee again expect to see an improvement in results for the current business year. As projected earlier, internal operating EBITDA growth is once more likely to exceed the long-term average of 5 percent. Weather-related and seasonal losses sustained in the first quarter ought thus to be offset over the remainder of the year. The two profitable companies in the UK and India are to be rapidly integrated into the Group and should soon generate additional value. Rolf Soiron Chairman of the Board of Directors Markus Akermann CEO Shareholders Letter 5

7 Consolidated Statement of Income of Group Holcim January March Notes Restated ±% Million CHF Unaudited Unaudited Net sales 5 2,730 2, Production cost of goods sold (1,408) (1,414) Gross profit 1,322 1, Distribution and selling expenses (654) (650) Administration expenses (248) (251) Other depreciation and amortization (9) (70) Operating profit Other income (expenses) net 7 13 (9) EBIT Financial expenses net 8 (161) (147) Net income before taxes Income taxes (94) (118) Net income Attributable to: Equity holders of Holcim Ltd Minority interest CHF Earnings per dividend-bearing share Fully diluted earnings per share Cash earnings per dividend-bearing share Earnings before interest and taxes. 2 EPS calculation based on net income attributable to equity holders of Holcim Ltd. 3 Excludes the amortization of goodwill and other intangible assets. 6 Consolidated Statement of Income

8 Consolidated Balance Sheet of Group Holcim Million CHF Restated Restated Unaudited Unaudited Unaudited Cash and cash equivalents 5,273 3,730 1,877 Marketable securities Accounts receivable 2,950 2,209 2,262 Inventories 1,739 1,255 1,232 Prepaid expenses and other current assets Total current assets 10,331 7,396 5,724 Financial assets 1,494 1,162 1,766 Property, plant and equipment 18,040 13,124 13,726 Intangible and other assets 6,427 4,012 3,970 Deferred tax assets Total long-term assets 26,196 18,454 19,616 Total assets 36,527 25,850 25,340 Trade accounts payable 1,532 1,284 1,070 Current financial liabilities 6,709 2,709 3,021 Other current liabilities 1,778 1,357 1,352 Total short-term liabilities 10,019 5,350 5,443 Long-term financial liabilities 11,617 7,907 8,470 Deferred tax liabilities 1, ,049 Long-term provisions 1, Total long-term liabilities 14,849 9,839 10,508 Total liabilities 24,868 15,189 15,951 Share capital Capital surplus 3,956 3,956 2,575 Treasury shares (64) (488) (446) Reserves 5,083 4,555 4,556 9,435 8,483 7,087 Minority interest 2,224 2,178 2,302 Total shareholders equity 11,659 10,661 9,389 Total liabilities and shareholders equity 36,527 25,850 25,340 Consolidated Balance Sheet 7

9 Statement of Changes in Consolidated Equity of Group Holcim Share Capital Treasury capital surplus shares Million CHF Equity as at December 31, 2003 (audited) 402 2,628 (448) Restatement as per January 1, 2004 (as per note 2) (53) Restated opening balances as at January 1, 2004 (unaudited) 402 2,575 (448) Net income Currency translation effects Change in fair value Available-for-sale securities Cash flow hedges Realized gain (loss) in income statement Available-for-sale securities Cash flow hedges Dividends Change in treasury shares net 2 New minorities assumed Buyout of minorities Equity as at March 31, 2004 (unaudited) 402 2,575 (446) Equity as at December 31, 2004 (audited) 460 3,995 (488) Restatement as per January 1, 2005 (as per note 2) (39) Restated opening balances as at January 1, 2005 (unaudited) 460 3,956 (488) Net income Currency translation effects Change in fair value Available-for-sale securities Cash flow hedges Realized gain (loss) in income statement Available-for-sale securities Cash flow hedges Dividends Change in treasury shares net 424 New minorities assumed Buyout of minorities Equity as at March 31, 2005 (unaudited) 460 3,956 (64) 8 Statement of Changes in Consolidated Equity

10 Attributable to equity holders of Holcim Ltd Minority Total interest shareholders equity Retained Available-for-sale Cash flow Currency Total earnings equity reserve hedging translation reserves reserve effects 6,169 (109) (68) (1,741) 4,251 2,666 9,499 (8) (36) 6,161 (109) (68) (1,716) 4,268 2,666 9, (5) (5) (1) (6) (28) (28) (411) (411) 6,206 (103) (73) (1,474) 4,556 2,302 9,389 6,901 (10) (50) (2,278) 4,563 2,178 10, ,910 (10) (50) (2,245) 4,605 2,178 10, (47) (47) (39) (39) 7,044 (10) (40) (1,911) 5,083 2,224 11,659 Statement of Changes in Consolidated Equity 9

11 Consolidated Cash Flow Statement of Group Holcim January March ±% Million CHF Unaudited Unaudited Operating profit Depreciation and amortization of operating assets Other non-cash items (43) (63) Change in net working capital (303) (363) Cash generated from operations Dividends received 8 7 Interest received 1 (6) Interest paid (116) (87) Income taxes paid (126) (121) Other expenses (2) (1) Cash flow from operating activities (A) Purchase of property, plant and equipment (256) (206) Disposal of property, plant and equipment Purchase of financial assets, intangible and other assets (3,672) (1,047) Disposal of financial assets, intangible and other assets Cash flow used in investing activities (B) (3,831) (1,068) Dividends paid to minority shareholders (50) (19) Movements of treasury shares net Increase in current financial liabilities 2, Proceeds from long-term financial liabilities 2, Repayment of long-term financial liabilities (291) (213) Decrease in marketable securities Cash flow from financing activities (C) 5, ,320.3 In(De)crease in cash and cash equivalents (A+B+C) 1,431 (643) Cash and cash equivalents as at January 1 3,730 2,456 In(De)crease in cash and cash equivalents 1,431 (643) Currency translation effects Cash and cash equivalents as at March 31 5,273 1, Consolidated Cash Flow Statement

12 1 Basis of Preparation The unaudited consolidated first quarter interim financial statements (hereafter interim financial statements ) are prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies used in the preparation and presentation of the interim financial statements are consistent with those used in the consolidated financial statements for the year ended December 31, 2004 (hereafter annual financial statements ), except as discussed in changes in accounting policies. The interim financial statements should be read in conjunction with the annual financial statements as they provide an update of previously reported information. The preparation of interim financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the interim financial statements. If in the future such estimates and assumptions, which are based on management s best judgment at the date of the interim financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate during the period in which the circumstances change. 2 Changes in Accounting Policies As of January 1, 2005, the International Accounting Standards Board (IASB) revised various standards which lead to the following IFRS changes: Treatment of goodwill With effect from January 1, 2005, goodwill is not amortized but instead is tested for impairment on an annual basis. In accordance with IFRS 3 Business Combinations, this standard is to be applied on a prospective basis. Derecognition of negative goodwill All negative goodwill that arises on acquisition must be recognized immediately in the income statement. In accordance with the transitional provisions of IFRS 3 Business Combinations, CHF 50 million of negative goodwill was derecognized on January 1, 2005, and transferred directly to retained earnings. This standard is to be applied on a prospective basis. Change in treatment of currency translation effects on intergroup loans According to IAS 21 Effects of Changes in Foreign Exchange Rates (revised 2004), foreign exchange rate movements on qualifying intergroup equity loans can only be recognized in equity (currency translation adjustment) if the loan is denominated in the functional currency of one of the parties to the loan. Prior to January 1, 2005, all foreign exchange rate movements on qualifying intergroup equity loans were recorded directly in equity (currency translation adjustment). The effect of this amendment has resulted in an additional income statement credit of CHF 4 million within financial expenses net for the period January March However, total shareholders equity remained unchanged at December 31, Reversal of foreign exchange losses capitalized As of January 1, 2005, IAS 21 Effects of Changes in Foreign Exchange Rates (revised 2004) does not permit certain foreign exchange losses that result from a severe depreciation of a currency to be capitalized as part of property, plant and equipment. The effect of this amendment has resulted in retained earnings being reduced by CHF 11 million at December 31, Reclassification of equity portion of convertible bonds According to IAS 32 Financial Instruments: Disclosure and Presentation (revised 2004), an equity component recognized for issued convertible bonds with a cash settlement option must, with retrospective effect, be reclassified as a financial liability on the balance sheet. The effect of this amendment has resulted in an additional income statement charge of CHF 16 million within financial expenses net for the period January March In addition, total shareholders equity was reduced by CHF 36 million at December 31, Emission rights As Interpretation 3 Emission Rights of the International Financial Reporting Interpretations Committee (IFRIC 3) is only effective for the Group from 2006 onwards and considering that further amendments are still under discussion at the International Accounting Standards Board (IASB), the Group has decided not to follow IFRIC 3 in Notes to the Consolidated Financial Statements 11

13 Remuneration paid in the form of stock options The adoption of IFRS 2 Share-based Payment has resulted in a change in accounting policy for remuneration paid in the form of stock options. Until December 31, 2004, the provision of share options to employees did not result in a charge to the income statement. However, as from January 1, 2005 the Group is required to recognize the fair value of options granted in the income statement. As the Group does not have significant share option schemes, the effect of applying IFRS 2 is not material. Functional currency As from January 1, 2005 a new functional currency was adopted for certain Group companies in order to reflect a change in the underlying economic conditions of the countries concerned (mainly Latin America). Consequently, the respective companies converted all balance sheet positions into the new functional currency on the basis of the exchange rate prevailing at the reference date of January 1, For non-monetary items, the resulting translated amounts represent their historical cost. The impact of changes in the functional currency has not been presented retrospectively. Effect of Changes in Accounting Policies Capital surplus Million CHF Equity as previously reported at December 31, 2003 (audited) 2,628 Change in treatment of currency translation effects on intergroup loans Reversal of foreign exchange losses capitalized Reclassification of equity portion of convertible bonds (53) Restated opening balances as at January 1, 2004 (unaudited) 2,575 Effect of the restatement as per January 1, 2004 (53) Equity as previously reported at December 31, 2004 (audited) 3,995 Derecognition of negative goodwill Change in treatment of currency translation effects on intergroup loans Reversal of foreign exchange losses capitalized Reclassification of equity portion of convertible bonds (39) Restated opening balances as at January 1, 2005 (unaudited) 3,956 Effect of the restatement as per January 1, 2005 (39) 12 Notes to the Consolidated Financial Statements

14 Attributable to equity of holders of Holcim Ltd Retained Available-for-sale Cash flow Currency Total Total earnings equity reserve hedging reserve translation effects reserves changes 6,169 (109) (68) (1,741) 4,251 (21) 21 (11) (11) (11) (25) 6,161 (109) (68) (1,716) 4,268 (36) (8) (36) 6,901 (10) (50) (2,278) 4,563 10, (29) 29 (11) (11) (11) (1) 4 3 (36) 6,910 (10) (50) (2,245) 4, Notes to the Consolidated Financial Statements 13

15 3 Changes in the Scope of Consolidation Holcim effectively controlled 100% of Aggregate Industries plc for a total consideration of CHF 4,142 million when the offer to shareholders was declared unconditional on March 21, The identifiable assets and liabilities arising from the acquisition are as follows: Million CHF Aggregate Industries plc Fair value carrying amount Current assets 1,162 1,174 Long-term assets 4,777 3,742 Current liabilities (1,298) (1,295) Long-term liabilities (2,656) (2,117) Net assets 1,985 1,504 Minority interest (8) Net assets acquired 1,977 Cash paid 3,603 Current financial liabilities 539 Total purchase consideration 4,142 Fair value of net assets acquired 1,977 Goodwill 2,165 The purchase consideration settled in cash represents payment for 89.93% of the ordinary share capital of Aggregate Industries plc held at March 31, The outstanding amount of CHF 539 million will be settled during the following quarter as the statutory procedures to compulsorily acquire the remaining ordinary shares in Aggregate Industries plc have been implemented. The initial accounting for Aggregate Industries plc was determined provisionally because the acquisition was only completed when the offer was declared unconditional on March 21, In accordance with IFRS, adjustments to the fair values assigned to the identifiable assets acquired and liabilities assumed can be made during the next twelve months. If the acquisition had occurred on January 1, 2005, Group net sales for the first quarter would have been CHF 710 million higher. Net income would have been reduced by CHF 35 million which reflects the expected seasonal lower first quarter trading results of Aggregate Industries plc. 4 Segment Information Information by region Europe North Latin Africa Asia Corporate / Total America America Middle East Pacific Eliminations Group January March (unaudited) Income statement Million CHF Net sales (138) (108) 2,730 2,760 Operating EBITDA (54) (44) Operating EBITDA margin 1 in % Operating profit (16) (54) (45) Operating profit margin 1 in % (4.2) Operating profit excl. goodwill amortization (15) (54) (45) Capacity and sales Million t Production capacity cement Sales of cement and clinker (1.6) (1.5) Sales of aggregates Million m 3 Sales of ready-mix concrete Prior-year figures adjusted to exclude certain Group charges. 2 Prior-year figures as of December 31, Notes to the Consolidated Financial Statements

16 5 Change in Net Sales January March Million CHF Volume and price Change in structure Currency translation effects (89) (10) Total (30) Change in Operating EBITDA January March Million CHF Volume, price and cost (31) 109 Change in structure 22 7 Currency translation effects (27) (19) Total (36) 97 7 Other Income (Expenses) January March Million CHF Dividends earned 7 5 Financial income 11 0 Other ordinary income net 4 9 Depreciation and amortization of non-operating assets (9) (23) Total 13 (9) 8 Financial Expenses Net January March Million CHF Financial expenses (190) (153) Interest earned on cash and cash equivalents Foreign exchange gain (loss) net 7 (7) Total (161) (147) 9 Contingent Liabilities No significant changes. 10 Post-Balance Sheet Events On April 11, 2005, Holcim has successfully completed the strategic transactions in India. The Group now holds 67 percent of the equity capital in Ambuja Cement India Ltd. with Gujarat Ambuja Cements Ltd. holding the remaining 33 percent. As the holding company bundling Holcim s engagement in India, Ambuja Cement India Ltd. holds 94 percent in Ambuja Cement Eastern Ltd. and 34.6 percent in The Associated Cement Companies Ltd. This corresponds to a total investment of USD 518 million. Notes to the Consolidated Financial Statements 15

17 11 Principal Exchange Rates Income statement Balance sheet Average exchange rates in CHF Jan March Closing exchange rates in CHF ±% EUR USD GBP CAD MXN EGP ZAR PHP THB AUD NZD Holcim securities The Holcim shares (security code No ) are listed on the SWX Swiss Exchange and traded on virt-x. The shares are also traded on the Frankfurt Stock Exchange. Telekurs lists the registered share under HOLN. The corresponding code under Bloomberg is HOLN VX, while Reuters uses the abbreviation HOLN.VX. Every share carries one vote. The market capitalization of Holcim Ltd amounted to CHF 16.9 billion at March 31, Cautionary statement regarding forward-looking statements This document 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 document. Holcim assumes no obligation to update or alter forwardlooking statements whether as a result of new information, future events or otherwise. Financial Reporting Calendar General meeting of shareholders May 3, 2005 Dividend payment May 6, 2005 Half-year results for 2005 August 25, 2005 Press and analyst conference for the third quarter 2005 November 9, 2005 Press and analyst conference on annual results for 2006 March 1, Notes to the Consolidated Financial Statements

18 Holcim Ltd Zürcherstrasse 156 CH-8645 Jona/Switzerland Phone Fax Corporate Communications Roland Walker Phone Fax Investor Relations Bernhard A. Fuchs Phone Fax

19 Day in, day out, Holcim s 57,000 men and women do their part in building the future. Wherever they may be, they deliver true value to our customers. Holcim is one of the world s leading suppliers of cement, aggregates and concrete and the provider of choice for related services. Holcim has majority and minority interests in more than 70 countries on all continents.