Holcim Canada – an overview

© Holcim Ltd 2010

Holcim Canada – an overview

Paul Ostrander – CEO Holcim Canada

Acton Quarry

February 22, 2011

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Holcim Canada will soon celebrate 60 years of operations in Canada with a history dotted with strategic acquisitions and growth

Atlas Realities (later St. Lawrence Cement) is

incorporated by Holderbank (later

Holcim)

Cement production begins in Quebec (1954) & Ontario

(1956)

St. Lawrence Cement is listed on Montreal & Toronto Stock

Exchanges

Acquisition of Dufferin assets

Acquisition of 50% share in Quebec Ready-Mix & De-

Mix

Acquisition of Joliette Cement Plant & Ontario

concrete operators

(Boehmers & Peninsula)

Acquisition of cement plants in Catskill New York and Hagerstown

Maryland

Creation of strategy waste

recycling committee

(AFR at Joliette in

1994)

Acquisition of NorthStar Cement (Nfld) and Gormley

Aggregates

Acquisition of TCG, Acton and

Mosport.

Launch of Shared

Services

Installation of Vertical Roller Mill & Clinker

Cooler

Acquisition of Ontario Red-Mix & Beton Grilli

& Lunick

St. Lawrence Cement becomes Holcim Canada

1951 1954-56 1961 1965 1973-76 1984-85 1990 1997 2001 2007 2009

Holcim Ltd. buyout of St.

Lawrence Cement minority

shareholders

Matured vertical integration strategy to concentrate on areas surrounding cement

plants

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Fully Integrated Cement & Construction Construction Only

Holcim Canada is a fully integrated player in the highly populated Greater Toronto (GTA) and Greater Montreal (GMA) markets

GTA

GMA

GMA

GTA

Cement Plant

Aggregate (8)

Ready-Mix (20)

Cement Plant

Aggregate (5)

Ready-Mix (9)

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

The Canadian economy is closely linked to that of the United States. As such there has been an economic impact but this impact has thus far been mitigated and there was a strong rebound in late 2009 and early 2010

GDP (% Change)

-4

-2

0

2

4

2005 2006 2007 2008 2009 2010 2011

CAD US

Total Construction (% Change)

-20

-10

0

10

20

2005 2006 2007 2008 2009 2010 2011

CAD US

Cement Consumption (% Change)

-30

-20

-10

0

10

20

2005 2006 2007 2008 2009 2010 2011

CAD US (incl. imports)

Housing Starts (% Change)

-50

-25

0

25

2005 2006 2007 2008 2009 2010 2011

CAD US

Source: PCA 2010 Summer Forecasts for the US and Canada, August 2010

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Holcim Canada has a commitment to Sustainable Development with Corporate Objectives for OH&S, Environment and Social initiatives

3.22.2 2.3

0.6

4.2

1.1

7.1

5.6

3.9

2.7< 2.0

0

2

4

6

8

2005 2006 2007 2008 2009 2010

LTIFR Target

850 652 610 6070

100

200

300

400

500

600

700

800

900

1990A 2007A 2008A 2009A

CO

2 ne

t / t

cem

Annual CO2

25% Reduction Target from 1990 Levels

OH

&S

- LT

IFR

EN

VIR

ON

ME

NT

– C

O2

CO

RP

OR

ATE

SO

CIA

L R

ES

PO

NS

IBIL

ITY

Holcim Canada maintains Community Advisory Panels (CAPS) at all operating sites (proportional to site size)

CO

MM

UN

ITY

S

PO

NS

OR

SH

IP

LTIFR: Lost Time Incident Frequency Rate

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Holcim Canada is well integrated into the Value Chain with a broad customer base ranging from product supply of cement to solutions providing construction services

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Holcim Canada optimizes Vertical Integration in the value chain while improving delivery mechanisms for new product introduction & optimization of existing products

35% of cementitious volumes and 39% of aggregate volume flowed through our vertically integrated channels in 2009.

Transactional

Mortars

Ready-mixConcrete

Asphalt

Concrete Products

Direct Sales

Direct Sales

Traders

Wholesalers

Retailers

Traders

Wholesalers

Retailers

End-users

General Contractors

Civil Engineering

ChannelsTransformational

MasonsSelf - builders

CementitiousMaterials

(cement,mineral

components)

SupplyBasic Materials Processing

Aggregates

(sand, gravel, stone, recycled

aggregates) Infrastructure

Commercial / IndustrialBuilding

Housing

Demand

Appl icat ions

Applications andConstruction Fields

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Pervious concrete is a special type of high porosity concrete used where applications require water from precipitation and other sources to pass directly through.

It helps reduce stormwater runoff, replenishes aquifers, protects streams and lakes and allows water and oxygen to reach tree roots.

Ready-Mix is the optimal Business Unit in the Holcim Value Chain for solutions delivery. Innovations in products and services have made the Ready-Mix Business Units into market leaders

PE

RV

IOU

S

CO

NC

RE

TES

PE

CIA

LTY

C

ON

CR

ETE

Specialty concretes were almost 10% of Demix Beton’s volumes in 2009.

Flex concrete is a bending application used with City of Montreal as well as Montreal airport and ports.

Self-Placing is fluid and homogeneous with minimal segregation and bleeding; used primarily for vertical applications.

Anti-Corrosion concrete inhibits the corrosion of steel reinforcement.

EN

VIR

OG

UA

RD

In 2009, Dufferin Concrete won multiple awards for a system that ensures no chute wash water is released into the environment by returning the water used to clean the chute back into the truck’s drum.

The benefits are in cost savings and also a stronger job site environment scorecard which aids in LEEDS points.

LEEDS: Leadership in Energy & Environmental Design

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Dufferin Construction, one of the leading highway contractors for the province of Ontario, has been low bidder on 3 RBRs in Ottawa and Hamilton. RBRs are the replacement of a highway bridge overpass over the course of a weekend where the entire bridge is removed and replaced with sectionals built in a nearby staging area. RBR is not only more economical but also offers solutions to the Municipalities in terms of less traffic congestion, a shorter construction cycle and benefits to the public.

Since 1975, Dufferin Construction has been responsible for ‘air-side’ snow removal at Pearson airport – a 24hrs/day, 6months/year contract. 250 DCC personnel have Government of Canada security clearance and are available on 1 hour notice.

The activity not only provides cash flow and operations during traditionally slow construction months but also ensure equipment utilization over the period.

Material recycling has been critical in allowing waste materials deposit sales and also in construction cost reduction.

In 2009, Demix Aggregates sold 230kt of recycled aggregates primarily to Demix Construction’s A-25 PPP project. Additional opportunities for asphalt recycling are being investigated to lower operating costs for construction and provide a potential revenue stream for aggregates.

RA

PID

BR

IDG

E

RE

PLA

CE

ME

NT

AG

GR

EG

ATE

S

RE

CY

CLI

NG

SN

OW

R

EM

OV

AL

Construction, in addition to Ready-Mix, is highly competitive in Greater Toronto and Montreal markets. Providing solutions is how Dufferin and Demix Construction distinguish themselves from other market players

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Vertical Integration has also given Holcim Canada the opportunity to move into Solutions Provider roles in large scale projects. This allows the company the ability to optimize its product/service offerings

COMMODITY SOLUTIONS

SUPPLIERSUPPLIER

ALLIANCEALLIANCE

BUILDBUILD

PARTNERPARTNERDESIGN & DESIGN &

BUILDBUILDMunro Concrete

Products

Ministry of Transportation

A-25 & SAB

407 ETR

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

A key area of growth for Holcim Canada is participation in Public-Private Partnerships in projects across Canada

• Public Private Partnerships (PPP) are an alternative method for governments to meet the public’s infrastructure needs• Through long-term PPP contracts that have design, build,

finance and operate components, governments can access private sector expertise, technology and capital

407 ETR

Proposed Montreal Hospital

Government

Equity provider

Special Purpose Vehicle (SPV)

Construction contract

Loan agreement

Shareholders agreement

Service agreement

Concession (30 years)

Service agreement

Technical advisers/

consultants

Maintenance Operator

Debt provider

Design Build Joint Venture

Sub-contractors/ suppliers

Serviceagreements

Engineers/consultants

Construction/supply contracts

Engineers/ consultants

Serviceagreements

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Legend: Fully Integrated Cement & Construction Construction Only

Focusing on core strategies in Greater Toronto and Montreal markets as well as building HCA as a solutions provider will allow the company to gain full advantage from upcoming large scale projects

GTA

GMA

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

M

X

X

X

X

X

X

X

X

X

X

X

X

S

Completed

2012 - 20172,500Turcott

2011 - 20172,000Windsor Essex Parkway

Pending

Ongoing350MTQ Highways (A-25)

Ongoing300MTO Highways

2007 - 20125,000James Bay (Sarcelle & Rupert)

2005 - 20131,600Sir Adam Beck Tunnel

Current

2012 – 20218,000Churchill Falls

Future

2012 - 20151,000407 ETR East

2010 - 2015400Calgary Airport

2010 - 20209,500MetroLinx(York BRT, Sheppard LRT, Scar RT, Finch LRT, Eglington LRT)

2012 – 20156,000Hebron Platform

2009 - 20152,400PanAm Games

2005 - 20254,200Vancouver Airport

1991 – 19976,000Hibernia Platform

2002 - 20072,000James Bay (Eastmain 1)

2011 - 20132,200Inco Smelter (Nfld)

1998 – 20104,500Toronto Airport (GTAA)

1995 - 19981,000Highway 407 ETR

Est. Project Value ($M CAD) TimelineProject

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

M

X

X

X

X

X

X

X

X

X

X

X

X

S

Completed

2012 - 20172,500Turcott

2011 - 20172,000Windsor Essex Parkway

Pending

Ongoing350MTQ Highways (A-25)

Ongoing300MTO Highways

2007 - 20125,000James Bay (Sarcelle & Rupert)

2005 - 20131,600Sir Adam Beck Tunnel

Current

2012 – 20218,000Churchill Falls

Future

2012 - 20151,000407 ETR East

2010 - 2015400Calgary Airport

2010 - 20209,500MetroLinx(York BRT, Sheppard LRT, Scar RT, Finch LRT, Eglington LRT)

2012 – 20156,000Hebron Platform

2009 - 20152,400PanAm Games

2005 - 20254,200Vancouver Airport

1991 – 19976,000Hibernia Platform

2002 - 20072,000James Bay (Eastmain 1)

2011 - 20132,200Inco Smelter (Nfld)

1998 – 20104,500Toronto Airport (GTAA)

1995 - 19981,000Highway 407 ETR

Est. Project Value ($M CAD) TimelineProject

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© Holcim Canada (Ltd) Acton Quarry February 22, 2011

Holcim Canada is a strong vertically integrated player. Optimizing opportunities in customer loyalty, sustainable development and product and service solutions will ensure full advantage of upcoming opportunities

SUSTAINABLE DEVELOPMENT

Operating by the Triple Bottom Line. Providing the right products

& services for a balanced approach to growth economically,

in our communities and respecting the environment.

STAKEHOLDER LOYALTY

Responding to stakeholder (customer, community, regulator) needs with products & services (ready-mix designs, rapid bridge

replacement) and changing procurement practices (PPP)

HOLCIM SOLUTIONS

Moving forward on innovative solutions (products / services) that fulfill our commitment to

Sustainable Development and enhance our Customer

Relationships

SUSTAINABLE DEVELOPMENT

Capturing opportunities for developing a sustainable

competitive advantage, improving relationships with stakeholders

and capturing cost savings through efficiency gains

VERTICAL INTEGRATION

Utilizing a city-based strategy to optimize material flow through channels to market, primarily in

core Toronto and Montreal markets

EMPLOYEE DEVELOPMENT

Continue to develop employees for the needs of the future with

increasingly challenging opportunities (PPPs) as well as opportunities for development

abroad

Holcim Canada’s Commitment to it’s Community & Markets

Holcim Canada’s Strategic Positioning In Holcim Ltd.

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© Holcim Canada (Ltd)

In the Acton Quarry context, Dufferin acquired the operation in 2001 and has worked to address a number of operational issues.

Site appearance Overall housekeeping and

signage Tours Rehabilitation

Entrance conditions Sweeper to address mud on

the road Sightlines at 22nd Sideroad

crossing

Haul routes Truck queues on 22nd Sideroad Speeding “eye” with HRPS

Noise Monitoring at neighbours Blast design changes

Acton Quarry February 22, 2011

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© Holcim Canada (Ltd)

We continue to address key issues with transparency and with the goal of achieving a solution for all involved.

4th Line Water Concerns Wetlands and JESA

Technical evaluations

Habitat creation

Rehabilitation and Afteruse Afteruse6 Dry bowl

600 ha into

Public ownership

Community Engagement•CLC

•Website

•Meetings

Acton Quarry February 22, 2011

Subject: Conclusion of 4th Line Water Study & Termination of Temporary Water Supply to Your Property as of July 28, 2009

The purpose of this letter is to confirm that the independent 4 th Line Water Supply Study by Jagger Hims Limited concludes that the Acton Quarry is not impacting your well . As you know, our policy is to supply water to properties experiencing water issues until such time as a review of the situation can be completed. The Jagger Hims study is now the third study in two years on this issue. We have satisfied ourselves and various government agencies that Dufferin is not the cause of your problems. As such, there is no basis for our continued involvement in this matter.

Property & Resource

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© Holcim Canada (Ltd) Milton Quarry CAP Presentation September 27th, 2010

Strength. Performance. Passion.