2005 annual results and outlook for 2006 presentation of march 1 2006 holcim ltd

Presentation of March 1, 2006

Markus Akermann, CEO

Theophil H. Schlatter, CFO

The spoken word prevails.

2005 annual results and outlook for 2006

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2005 annual results

Dynamic development of the Group

ƒ Dynamic growth marks Group results

ƒ Internal operating EBITDA growth of 10.5 percent

ƒ Acquisitions totaling CHF 5.2 billion

ƒ Foundations laid for creation of value in the future

ƒ Solid Group net income permits dividend increase

1) For Holcim, last financial year was exceptionally dynamic, setting new standards in

terms of both organic and acquisition-based growth. Within its existing portfolio, the

Group generated organic growth of about 10 percent in terms of sales, operating

EBITDA and cash flow. The acquisitions came to a total of 5.2 billion Swiss francs.

Extrapolated to the year as a whole these companies represent sales of 5.5 billion

Swiss francs. This is equivalent to just under a third of consolidated net sales and

results in an additional contribution to operating EBITDA of nearly one billion Swiss

francs. The fundamentally solid positioning and swift integration of the newly acquired

companies provide an excellent basis for continuing to generate substantial added

value going forward. In light of a marked rise in net income, this year the Board of

Directors once again proposes that the General Meeting adopt an increase in dividend

from 1 franc 25 to 1 franc 65 per share. This corresponds to an increase of 32 percent.

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2005 annual results

Pleasing development of existing portfolio

ƒ Group profited fully from its strengths in a favorable

economic environment

ƒ Predominantly friendly price environment and good capacity

utilization

ƒ Impressive performance in all Group regions

ƒ Stringent cost management and price increases absorb

higher energy costs

ƒ Foreign currency effects negligible

2) In a favorable economic environment, Holcim applied the Group's strengths to the

full. The consolidated financial statements are based on a solid regional business

development and confirm our leading position as a global building materials group.

With a few exceptions, we were able to positively influence results with targeted price

adjustments. Good capacity utilization also had an impact. In operating terms, the main

focus of our efforts was on the cost side, as we wished to offset the massive rise in

energy costs as much as possible. These efforts were successful thanks to a range of

measures, but in particular thanks to greater use of alternative fuels and an

improvement in the marketing of composite cements. In contrast with previous years,

the impact of foreign currency effects on the income statement in Swiss francs was

only negligible.