we are on track third quarter interim report 2003 holcim ltd

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Third Quarter Interim Report 2003 Holcim Ltd

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As of December 31, 2002.

Net financial debt divided by shareholders’ equity including interests of minority shareholders.

Excluding the amortization of goodwill and other intangible assets.

Income statement figures translated at average rate; balance sheet figures at year-end rate.

“In our business, market integration and

thinking ‘outside the box’ are becoming ever

Principal

key Netfigure sales million USD 6,908 6,244 +10.6

Operating EBITDA million USD 1,865 1,645 +13.4

Operating profit million USD 1,140 981 +16.2

Net income after minority interests million USD 381 323 +18.0

Cash flow from operating activities million USD 1,123 1,089 +3.1

Net financial debt million USD 6,927 6,3721

+8.7

Shareholders’ equity million USD 7,345 6,7881

+8.2

Earnings per dividend-bearing share USD 1.95 1.65 +18.2

Principal key figures in EUR (illustrative)4

Net sales million EUR 6,222 6,754 –7.9

Operating EBITDA million EUR 1,680 1,780 –5.6

Operating profit million EUR 1,026 1,061 –3.3

Net income after minority interests million EUR 343 350 –2.0

Cash flow from operating activities million EUR 1,011 1,178 –14.2

Net financial debt million EUR 5,938 6,1081

–2.8

Shareholders’ equity million EUR 6,295 6,5071

–3.3

Earnings per dividend-bearing share EUR 1.75 1.79 –2.2

Key Figures Group Holcim

January–September 2003 2002 ±% ±% local

currency

Annual production capacity cement million t 141.1 141.91

–0.6

Sales of cement and clinker million t 70.5 68.0 +3.7

Sales of aggregates million t 68.9 67.9 +1.5

Sales of ready-mix concrete million m

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19.7 18.9 +4.2

Net sales million CHF 9,395 9,928 –5.4 +1.1

Operating EBITDA million CHF 2,537 2,616 –3.0 +5.2

Operating EBITDA margin % 27.0 26.3

EBITDA million CHF 2,597 2,719 –4.5 +3.0

EBITDA margin % 27.6 27.4

Operating profit million CHF 1,550 1,559 –0.6 +8.1

Operating profit margin % 16.5 15.7

Net income before minority interests million CHF 723 727 –0.6 +7.8

Net income after minority interests million CHF 518 514 +0.8 +8.2

Net income margin % 5.5 5.2

Cash flow from operating activities million CHF 1,527 1,732 –11.8 –4.9

Cash flow margin % 16.3 17.4

Net financial debt million CHF 9,144 8,8571

+3.2 +3.4

Shareholders’ equity including interests

of minority shareholders million CHF 9,695 9,4351

+2.8 +3.2

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Gearing % 94.3 93.91

Employees 47,889 51,1151

–6.3

Earnings per dividend-bearing share CHF 2.65 2.63 +0.8

Fully diluted earnings per share CHF 2.64 2.62 +0.8

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Cash earnings per share CHF 3.81 3.76 +1.3

more important.”

Operating margins improve in third quarter

Holcim lifted its operating margins in the third quarter of 2003, marking

a continuation of the positive trend

that has been in place since the start of the year. Additional cost savings

enabled substantial progress to be

made. The sharp decline in the value of the US dollar, however, had an ad

verse impact on financial performance

in Swiss franc terms.

Consolidated sales rose in all three core segments compared with the firs

t nine months of 2002. On the cement

side, there was growth in volumes across all Group regions. The higher vo

lume of aggregates (gravel and sand)

was primarily due to the European Group companies, whereas deliveries

of ready-mix concrete improved not

just in Europe but also in the Group regions of Latin America and Africa

Middle East.

Net sales revenue grew by 1.1 percent in local currency, primarily as a result

of the higher delivery volumes. In Swiss

franc terms, there was a 5.4 percent currency-related decline to CHF 9,395

million (nine months 2002: 9,928).

In local currency, the operating result showed a significant increase of 8.1

percent. Despite adverse exchange rate

factors, consolidated operating profit was virtually unchanged at CHF 1,55

0 million (nine months 2002: 1,559).

Consequently, the operating profit margin showed further improvement.

This was mainly achieved through cost￾cutting measures in the areas of administration and production. Cash flow

from operating activities failed to match

the previous-year level at CHF 1,527 million (nine months 2002: 1,732);

however, it did show significant improvement

in relation to the first half of the year. Consolidated net income after minor

ities showed a rise of 8.2 percent in local

currency, and there was also a 0.8 percent increase in Swiss franc terms to

CHF 518 million (nine months 2002: 514).

These figures underline the impressive overall performance of the busines

s in the third quarter.

European construction sector in recovery mode – German market still faci

ng difficulty

The European construction sector held up well in the third quarter. Const

ruction activity in Southern Europe