Holcim Annual Report 2014-En

Strength. Performance. Passion.
S OLUTIONS.
TA I LOR-MADE.
Annual Report 2014
CONTENTS
SHAREHOLDERS’ LETTER >> 1
HOLCIM I N BRI EF >> 9
S O L U T I O N S . TA I L O R - M A D E .
Switzerland: Partner from valley to peak >> 18
Mexico: Awards – from hammer to pick-up >> 24
Vietnam: A solid foundation >> 30
VA L U E - D R I V E N C O R P O R AT E M A N A G E M E N T
Key Success Factors >> 38
Holcim Leadership Journey >> 44
Organization and Management >> 50
Innovation >> 58
Capital Market Information >> 62
S U S TA I N A B L E D E V E L O P M E N T
Environmental Commitment
and Social Responsibility >> 68
Human Resources >> 74
BUSINESS REVIEW
Group Region Asia Pacific >> 78
Group Region Latin America >> 82
Group Region Europe >> 86
Group Region North America >> 90
Group Region Africa Middle East >> 94
C O R P O R AT E G O V E R N A N C E
Corporate Governance >> 98
R E M U N E R AT I O N R E P O R T
Remuneration Report >> 118
F I N A N C I A L I N F O R M AT I O N
MD & A >> 132
Consolidated Financial Statements >> 149
Holding Company Results >> 223
Company Data >> 234
5-Year-Review >> 241
SHAREHOLDERS’ LETTER
Dear shareholder,
In the financial year 2014 Holcim achieved solid like-for-like performance. Like-
for-like net sales and operating profit increased, although in many places the
economic situation presented difficult waters to navigate again in 2014.
The economies of the individual Group regions developed heterogeneously over

the year. The economic climate in Asia Pacific was marked by solid growth in
most of the key markets. In contrast, growth in Latin America was affected by a
challenging economic climate with significant uncertainties, primarily in the
form of lower raw materials prices and more difficult financing conditions. The
recovery of the European economy stalled during the course of 2014, as chief
markets failed to meet growth expectations and political insecurity mounted. On
the other hand, the USA, after a weak first quarter of 2014, saw a solid upturn.
Economic development in the Group region Africa Middle East was extremely
heterogeneous.
Within this economic environment, the Group managed to increase cement vol-
umes by 1.0 percent to 140.3 million tonnes. Significant contributions to this
increase were made especially by the Group companies in the USA, the Philippines,
and Mexico as well as by Ambuja Cements in India and Holcim Indonesia. Aggre-
gates sales decreased by 0.9 percent to 153.1 million tonnes. Causes for this were
the restructuring implemented in Latin America in the previous year and the
tense market environment in France, Australia, Belgium, and Switzerland. Ready-
mix concrete sales were also lower than the year before, dropping by 6.3 percent
to 37.0 million cubic meters. Here too, results were affected by the restructuring
in Latin America in 2013 as well as by less market demand in Singapore, Bel-
gium, and France. On the other hand, asphalt volume increased by 12.4 percent to
10.0 million tonnes.
On a like-for-like basis, net sales rose 3.0 percent over the previous year. Consoli-
dated net sales dropped by 3.1 percent to CHF 19.11 billion, mainly due to negative
currency effects amounting to CHF 1,030 million. Through improved commercial
excellence prices could be adapted in many Group regions. Like-for-like operating
profit increased by 4.2 percent to CHF 2,317 million. On a like-for-like basis and
adjusted for merger and restructuring costs, operating profit was up 10.6 percent.
I
Holcim also managed to improve its operating profit margin, measured on a like-
for-like basis and adjusted for merger and restructuring costs.
HOLCIM LEADERSHIP JOURNEY CONTINUES BEYOND 2014
The Holcim Leadership Journey, launched Group-wide in 2012, has proven a great
success for Holcim, especially since the two core aspects – cost reduction and a
shift of mindset toward stronger customer focus – have become firmly anchored
within the organization. Overall, a contribution of CHF 1.848 billion was achieved,
surpassing by far the originally envisaged contribution to operating profit of
CHF 1.5 billion. Holcim launched over 6,000 initiatives at all levels of the Group,
all of which enhanced the positive financial contribution. Thus, the Holcim Lead-
ership Journey is a broad-based success in which all cost initiatives exceeded our
original target. Customer Excellence is now strongly anchored in our corporate
culture and is a foundation for the Group’s future success. This is concretely docu-
mented as part of three representative stories in this report explaining the value
added that Holcim has generated for customers in Switzerland, Mexico, and
Vietnam.
The Holcim Leadership Journey will be continued on several levels beyond 2014,
as continuous performance improvement is embedded in the Holcim culture and
proves particularly useful in these times of cost inflation and a challenging mar-
ket environment.
P O RTF O L I O O PTI M I ZATI O N
The Group’s overall presence in Europe was considerably strengthened through a

series of transactions with Cemex, closed in early 2015. On one hand, the Group
significantly expanded its presence in western Germany by connecting the compa-
nies in northern Germany with those in France and Benelux. On the other, by
selling parts of the business in Spain and restructuring the aggregates segment,
the necessary flexibility was created to remain successful in the future. Holcim
also sold its activities in the Czech Republic.
II
M E R G E R W I T H L A FA R G E P R O M I S E S B E N E F I TS F O R A L L STA K E H O L D E R S
Since April of last year, the interest of all stakeholders has been centered on the
planned merger with Lafarge – a bold and decisive step through which we will com-
bine the best of the two renowned Groups and create a unique basis for growth.
The new company with European roots will offer all shareholders decisive benefits.
It will be instrumental in providing solutions to the great challenges of urbaniza-
tion: affordable housing, urban sprawl, and transportation. The Group’s offerings for
its customers will expand significantly, based on strong innovation capabilities,
the highest level of research and development, and a consolidated portfolio of solu-
tions and products. Both companies are pioneers in terms of sustainability and
limiting the effects of climate change, and both are determined to strengthen this
commitment even more in the future. The position as global market leader in ce-
ment, concrete, and aggregates offers the company new opportunities to optimize
production and strengthen commercial partnerships. This places us perfectly to
tackle the economic challenges of the future.
OUTLOOK FOR 2015
Holcim expects for 2015 that the global economy continues its gradual recovery.
Key construction markets of Holcim in countries like the USA, India, Indonesia,
Mexico, Colombia, the UK, and the Philippines are expected to be the main growth
drivers. Europe overall should have a flat development. Latin America will continue
to face uncertainties in countries such as Argentina and Brazil but should overall
show slight growth in 2015. The Asia Pacific region is expected to grow although
at a still modest pace. Africa Middle East is expected gradually to improve.
In this environment cement volumes should increase in all Group regions in 2015
with the exception of Europe. Aggregate and ready-mix concrete volumes are
expected to increase. On a stand-alone basis and unconnected to the proposed
merger with Lafarge, the Board of Directors and Executive Committee of Holcim
expect like-for-like operating profit adjusted for merger-related costs to be between
CHF 2.7 billion and 2.9 billion in 2015. Higher pricing and ongoing cost savings
are anticipated to offset cost inflation, leading to a further expansion in operat-
ing margins in 2015.
III
PAYO UT TO S H A R E H O L D E R S
Against this backdrop of generally positive development, the Group is continuing

its consistently practiced dividend policy and distributing one third of the Group’s
net income attributable to shareholders of Holcim Ltd. At the annual general meet-
ing to be held mid-April, we will propose a payout of CHF 1.30.
O U R TH A N KS TO S H A R E H O L D E R S, C U STOM E R S, PA RTN E R S,
AND EMPLOYEES
We would like to thank you, our shareholders, for your loyalty and your trust dur-
ing the past twelve months. Our special thanks also go to our customers, business
partners, and suppliers – as well as our employees around the world. With compe-
tence and commitment, everyone has helped to make Holcim what it is today: a
world leading company – one that operates sustainably, is well positioned globally,
and offers excellent future perspectives.
Zurich, February 2015
Prof. Dr.-Ing. Wolfgang Reitzle Bernard Fontana

Chairman of the Board of Directors Chief Executive Officer
IV
P R O F. D R . - I N G . W O L F G A N G R E I T Z L E
A N D B E R N A R D F O N TA N A
V
EXECUTIVE COMMITTEE
I A N TH AC KW R AY
URS BLEISCH BERNARD TERVER
VI
EXECUTIVE COMMITTEE
ROLAND KÖHLER
THOMAS AEBISCHER ANDREAS LEU
B E R N A R D F O N TA N A
VII
O R GA N I ZATI O N A N D M A N AG E M E N T
B OA R D O F D I R E C TO R S
WOLFGANG R EITZLE
Chairman of the Board of Directors
Chairman of the Governance & Strategy Committee
B E AT H E S S
Deputy Chairman
ALEXAN DER GUT

Chairman of the Audit Committee
A D R I A N LOA D E R
Chairman of the Nomination & Compensation Committee
JÜRG OLEAS
THOMAS SCHMIDHEINY
HANNE BIRGITTE BREINBJERG SØRENSEN
D I E T E R S PÄ LT I
A N N E WA D E
VIII
HOLCIM IN BRIEF 9
HOLCIM IN BRIEF
2014
Key figures Group Holcim >> 10
Principal key figures in USD and EUR >> 11
Cement >> 12
Aggregates >> 13
Other construction materials and services >> 13
10 HOLCIM IN BRIEF
KEY FIGURES GROUP HOLCIM

KEY FIGU RES GROU P HOLCIM
2014 2013 ±% ±%
like-for-like
Annual cement production capacity million t 211.4 206.2 +2.5 +2.5
Sales of cement million t 140.3 138.9 +1.0 +1.4
Sales of mineral components million t 4.3 4.1 +5.5 +8.4
Sales of aggregates million t 153.1 154.5 –0.9 –0.4
Sales of ready-mix concrete million m3 37.0 39.5 –6.3 –4.9
Sales of asphalt million t 10.0 8.9 +12.4 +12.8
Net sales million CHF 19,110 19,719 –3.1 +3.0
Operating EBITDA million CHF 3,747 3,896 –3.8 +2.0
Operating EBITDA adjusted1 million CHF 3,885 3,896 –0.3 +5.5
Operating EBITDA margin % 19.6 19.8
Operating EBITDA margin adjusted1 % 20.3 19.8
Operating profit million CHF 2,317 2,357 –1.7 +4.2
Operating profit adjusted 1
million CHF 2,466 2,357 +4.6 +10.6
Operating profit margin % 12.1 12.0
Operating profit margin adjusted1 % 12.9 12.0
EBITDA million CHF 4,156 4,332 –4.1
Net income million CHF 1,619 1,596 +1.5
Net income margin % 8.5 8.1
Net income – shareholders of Holcim Ltd million CHF 1,287 1,272 +1.2
Cash flow from operating activities million CHF 2,498 2,787 –10.3 –6.4
Cash flow margin % 13.1 14.1
Net financial debt million CHF 9,644 9,461 +1.9 –1.2
Funds from operations /net financial debt
2
% 31.7 33.4
Total shareholders' equity million CHF 20,112 18,677 +7.7
Personnel 67,584 70,857 –4.6 –4.4
Earnings per share CHF 3.95 3.91 +1.0
Fully diluted earnings per share CHF 3.95 3.91 +1.0
Payout million CHF 4253 424 +0.2
Payout per share CHF 1.30 3
1.30 +0.0
1
Excluding merger and restructuring costs in 2014.
2
Net income plus depreciation, amortization and impairment.
3
Proposed by the Board of Directors for a maximum payout of CHF 425 million from capital contribution reserves.
Due to rounding, numbers presented

throughout this report may not add
up precisely to the totals provided.
All ratios and variances are calculated
using the underlying amount rather
than the presented rounded amount.
HOLCIM IN BRIEF 11
P R I N C I PA L K E Y F I G U R E S I N U S D ( I L L U S T R AT I V E )
2014 2013 ±%
Net sales million USD 20,874 21,276 –1.9
Operating EBITDA million USD 4,093 4,203 –2.6
Operating EBITDA adjusted1 million USD 4,244 4,203 +1.0
Operating profit million USD 2,531 2,543 –0.5
Operating profit adjusted1 million USD 2,693 2,543 +5.9
Net income – shareholders of Holcim Ltd million USD 1,406 1,373 +2.4
Cash flow from operating activities million USD 2,729 3,007 –9.2
Net financial debt million USD 9,750 10,634 –8.3
Total shareholders' equity million USD 20,334 20,992 –3.1
Earnings per share USD 4.31 4.22 +2.3
P R I N C I PA L K E Y F I G U R E S I N E U R ( I L L U S T R AT I V E )
2014 2013 ±%
Net sales million EUR 15,734 16,022 –1.8
Operating EBITDA million EUR 3,085 3,165 –2.5
Operating EBITDA adjusted1 million EUR 3,199 3,165 +1.0
Operating profit million EUR 1,908 1,915 –0.4
Operating profit adjusted1 million EUR 2,030 1,915 +6.0
Net income – shareholders of Holcim Ltd million EUR 1,060 1,034 +2.5
Cash flow from operating activities million EUR 2,057 2,264 –9.2
Net financial debt million EUR 8,018 7,717 +3.9
Total shareholders' equity million EUR 16,723 15,235 +9.8
Earnings per share EUR 3.25 3.18 +2.4
1
Excluding merger and restructuring costs in 2014.
12 HOLCIM IN BRIEF
CEMENT
PROFILE DEVELOPMENTS
Cement is manufactured through a large-scale, complex, and In 2014 cement volumes increased 1.0 percent to 140.3 mil-
capital and energy-intensive process. At the core of the lion tonnes. Volume increases in Asia Pacific, North America,
production process is a rotary kiln, in which limestone and and Africa Middle East were able to make up for the lower
clay are heated to approximately 1,450 degrees Celsius. shipments in Europe and Latin America. The Group compa-
The semi-finished product, called clinker, is created by sinte- nies with the highest volume increases included Holcim US,
ring. In the cement mill, gypsum is added to the clinker and Holcim Philippines, Holcim Morocco, Ambuja Cements, Holcim
the mixture is ground to a fine powder – traditional Portland Indonesia, and Holcim Mexico. Azerbaijan, Ecuador, and Italy
cement. Other high-grade materials such as granulated reported markedly lower cement shipments. The Group also
blast furnace slag, fly ash, pozzolan, and limestone are added sold 4.3 million tonnes of mineral components in 2014.
in order to modify the properties of the cement. Holcim
SALES OF CEMENT IN MILLION t
offers customers a very wide range of cements. However, the
Group sees itself as a service provider that generates added 160
value for its partners through the advice it gives and the 140
customized solutions it delivers for specific construction 120
projects.
100
C O N S O L I D AT E D K E Y F I G U R E S F O R C E M E N T I N 2 0 1 4 80
Production capacity cement in million t 211.4 60
Cement and grinding plants 144 40

Sales of cement in million t 140.3 20
Net sales1 in million CHF 12,509 0
Operating profit1 in million CHF 2,104 2010 2011 2012 2013 2014
Personnel 44,403
1
Includes all other cementitious materials
C O N S O L I D AT E D S A L E S O F C E M E N T 2 0 1 4 P E R R E G I O N 1
Asia Pacific 71.2 million t
Latin America 24.6 million t
Europe 26.4 million t
North America 13.0 million t
Africa Middle East 8.3 million t
1
Inter-regional sales -3.2 million t
HOLCIM IN BRIEF 13
A G G R E G AT E S
Aggregates include crushed stone, gravel, and sand. The Aggregate volumes across the Group reached 153.1 million
production process centers around quarrying, preparing and tonnes, a drop of 0.9 percent. All Group regions except North
sorting the raw material as well as quality testing. Aggre- America reported lower volumes. In Latin America restruc-
gates are mainly used in the manufacturing of ready-mix turing of aggregate positions was the main contributor
concrete, concrete products, and asphalt, as well as for road to the development while in Europe the increased ship-
building and railway track beds. The recycling of aggregates ments in the United Kingdom and the Czech Republic were
from concrete material is gaining importance at Holcim. exceptions. In North America both Aggregate Industries US
and Holcim Canada contributed to a significant increase in
C O N S O L I D AT E D K E Y F I G U R E S F O R A G G R E G AT E S I N 2 0 1 4
volumes.
Aggregates plants 363
Sales of aggregates in million t 153.1 S A L E S O F A G G R E G AT E S I N M I L L I O N t
Net sales in million CHF 2,404
200
Operating profit in million CHF 214
Personnel 5,722 180
160
C O N S O L I D AT E D S A L E S O F A G G R E G AT E S 2 0 1 4 P E R R E G I O N 140
Asia Pacific 24.8 million t 120
Latin America 7.5 million t 100
Europe 73.1 million t 80
North America 45.7 million t
60
Africa Middle East 2.0 million t
40
20
0
2010 2011 2012 2013 2014
O T H E R C O N S T R U C T I O N M AT E R I A L S A N D S E R V I C E S
Globally, concrete is the second most consumed commodity Deliveries of ready-mix concrete were down 6.3 percent
by volume after water. One cubic meter consists of approx- to 37.0 million cubic meters, as all Group regions reported
imately 300 kilograms of cement, 150 liters of water, and lower volumes. In Latin America, where the decreases were
2 tonnes of aggregates. Concrete is a very environmentally more significant, strategic efforts to right-size ready-mix
friendly, energy-efficient building material. Asphalt is a concrete operations had a strong effect on sales volumes.
bituminous construction material used primarily for road Asphalt volumes were up 12.4 percent to 10.0 million
paving. It consists mainly of aggregates of differing grain tonnes. Higher demand in the United States and the United
size. Holcim’s service offering also includes construction Kingdom in particular supported this development.
services and international trading.
S A L E S O F R E A D Y- M I X C O N C R E T E I N M I L L I O N m³
C O N S O L I D AT E D K E Y F I G U R E S F O R O T H E R C O N S T R U C T I O N
M AT E R I A L S A N D S E R V I C E S I N 2 0 1 4 50
Ready-mix concrete plants 935 40
Asphalt plants 84 30
Sales of ready-mix concrete in million m3 37.0
20
Sales of asphalt in million t 10.0
10
Net sales in million CHF 6,548
0
Operating profit in million CHF 0
2010 2011 2012 2013 2014
Personnel 16,825
14 HOLCIM IN BRIEF
HIGHER CEMENT VOLUMES AND

I N C R E A S E I N L I K E - F O R - L I K E O P E R AT I N G P R O F I T
MEXICO
AWA R D S — F ROM
H A M M E R TO P I C K- U P
>> 24
C O N S O L I D AT E D 1 NORTH AMER ICA 2 L AT I N A M E R I C A

KEY FIGURES Net sales in million CHF >>3,336 Net sales in million CHF >>3,012
Net sales in % of Group turnover >>16.9 Net sales in % of Group turnover >>15.3
Operating profit in million CHF >>314 Operating profit in million CHF >>663
Cement and grinding plants >>17 Cement and grinding plants >>27
Aggregates plants >>86 Aggregates plants >>12
Ready-mix concrete Ready-mix concrete plants >>109
and asphalt plants >>181 Personnel >>10,733
Personnel >>6,777
HOLCIM IN BRIEF 15
VIETNAM
A S O L I D F O U N D AT I O N
>> 30
SWITZERLAND
PA R T N E R F R O M
VA L L E Y TO P E A K
>> 18
3 EUROPE 4 A F R I CA , M I D D L E EAST 5 A S I A PA C I F I C
Net sales in million CHF >>5,554 Net sales in million CHF >>861 Net sales in million CHF >>6,970
Net sales in % of Group turnover >>28.1 Net sales in % of Group turnover >>4.4 Net sales in % of Group turnover >>35.3
Operating profit in million CHF >>510 Operating profit in million CHF >>220 Operating profit in million CHF >>934
Cement and grinding plants >>34 Cement and grinding plants >>12 Cement and grinding plants >>54
Aggregates plants >>188 Aggregates plants >>5 Aggregates plants >>72
Ready-mix concrete Ready-mix concrete plants >>15 Ready-mix concrete plants >>290
and asphalt plants >>424 Personnel >>1,928 Personnel >>31,850
Personnel >>15,399
16 S O LU T I O N S . TA I L O R- M A D E .
Whether in the urban canyons of a megacity, in

the mountains or in the swamplands of a river
delta, Holcim is always committed to providing
its clients with tailor-made solutions. Customer
Excellence is an essential part of the company.
Innovative products that are tailored to the res-

pective project requirements, integrated solutions
that can also cope with extreme circumstances,
and sales measures that adapt to local conditions
are examples of Holcim’s Customer Excellence
and problem-solving skills. They create value for
both the clients and Holcim.
A claim that Holcim lives up to every day and whose imple-
mentation has made the company what it is today, after
more than 100 years in existence: one of the world’s leading
manufacturers of building materials with outstanding
problem-solving skills.
S O LU T I O N S . TA I L O R- M A D E . 17
SOLUTIONS.
TA I L O R - M A D E .
THREE REPORTS
SW I T Z E R L A N D.
PA R T N E R F R O M VA L L E Y
TO P EA K
Implementation of a major dam
construction project under extreme
conditions.
>> 18
VIETNAM.
A S O L I D F O U N D AT I O N
Clever product and logistics concept
for power plant construction.
>>30
M EX I CO.
AWA R D S – F R O M H A M M E R
T O P I C K- U P
Sales support and customer retention
using a loyalty program.
>>24
18 S O L U T I O N S . TA I L O R- M A D E . SWITZERL AND
The concrete dam at Lake Mutt is 36 meters high,

15 meters wide at the base, and over a kilometer long at the
crown—the longest dam crown in Switzerland.
S O L U T I O N S . TA I L O R- M A D E . SWITZERL AND 19
PA R T N ER FRO M
VA L L E Y TO P E A K
SOLUTION
Remo Pinazza,
Project Manager for Marti Tunnelbau AG
Cement silos and transport containers at

the base station at Tierfehd: When the pro-
ject is finished, Holcim will have delivered
140,000 tonnes of cement, 30,000 tonnes
of fly ash, and 5,000 tonnes of special
binders.
see infographic, page 23, no. 3
Two aerial cableways were erected to

transport cement and other materials up
the mountain. They are in operation 24
hours a day, seven days a week.
On the snow covered high ridge of the mountain, The dam is part of a major hydroelectric project
where the wind hits your face, you are at an altitude here in the Alps, one of the largest and most spec-
of almost 2,500 meters above sea level – making it tacular such projects in recent Swiss history. The
slightly harder to breathe. So does the spectacular idea is to funnel water from Lake Mutt (pronounced
sight of the snow-dusted alpine lake just behind you, “moot”) through massive tunnels down to a huge
nestled against the peaks and crags. power-generating plant nestled deep inside the
This is probably the last place on earth you’d mountain. The water then empties into Lake Lim-
expect to find a ready-mix concrete plant. And yet mern, some 600 meters below Mutt, where it can be
there it is, its white, snow-capped silos looking them- pumped up again when needed.
selves like small alpine peaks. Behind it, stretched out “Building on this scale in the mountains is
like an inverted “V” for over a kilometer, is the great extremely difficult,” says Remo Pinazza, Project Man-
dam for which the concrete is being made—among ager for Marti Tunnelbau AG. Marti leads the consor-
other things with material supplied by Holcim. tium which is responsible for the dam as well as the
substantial tunneling and excavation work inside the
mountain. “Success requires intense planning and
reliable partners.”
“Building on this scale

in the mountains
is extremely difficult”.
REMO PINAZZA
Ready-mix concrete plant at an altitude

of 2,500 meters: The construction season
at the dam site lasts only the warmest
five months of the year. But even during
this time, heavy winds and late snows
have brought activity to a halt for days
at a time.
Standing on the ridge watching the concrete works have also provided Marti with technical assistance
you can see that planning and partnership in action. on the concrete mix, and Holcim has installed special
There are no roads here, so the cement, fly ash, and electronic monitors on Marti’s material silos, giving
binders supplied by Holcim are brought up by a spe- both companies a real-time picture of the state of
cially constructed industrial cable car. Marti makes supplies. The result? Everything delivered as needed,
concrete both at a plant at the dam site and, for the with no delays—despite peaks with over 700 tonnes,
tunnel and chamber linings, at a plant in the middle or 14 rail car deliveries, per day.
of the mountain. With limited room to store materi- “Marti has a long, successful relationship with the
al, deliveries must always be correct and on time, or people at Holcim,” says Pinazza. “We know we can
risk costly delays. count on them. With Holcim, we have had one less
Holcim is doing its part. Its plant at Untervaz thing to worry about on this project.”
has been guaranteeing an uninterrupted supply of Back on the ridge the wind whips up the snow on
cement (with backup from the Siggenthal plant). the crown of the great dam, now almost complete.
A constant rail link ensures timely delivery of the As you turn to go you know how important—espe-
cement and binders as well as fly ash from Holcim cially in the mountains—a reliable partner can be.
Germany—a complex undertaking. Holcim experts
1 Production 2 Transport 3 Storage
CEMENT PLANT TRAIN VA L L E Y S TAT I O N
6 Construction 5 Cement > Concrete 4 Transport

DA M WA L L R E A D Y- M I X CABLE CAR
CONCRETE PLANT
Within the mountain Marti is boring four

kilometers of tunnels and two mammoth
chambers for the turbines– the larger
of which is 150 meters long and 50 me-
ters wide.
24 S O LU T I O N S . TA I L O R- M A D E . M E X I CO
Felipe Delgado has owned his building supplies store for 17 years.
During all that time he has been a loyal Holcim customer. You can
see that when you enter the shop. There are Holcim posters and
materials everywhere, and Delgado’s staff all wear white shirts
embroidered with the logo of the store and the Holcim logo.
S O L U T I O N S . TA I L O R- M A D E . MEXICO 25
AWA RDS –
FROM HAMMER
T O P I C K- U P
SOLUTION
Victor Alva is 25 years old, and has been

a mason for five years. He was born in Puebla
but now lives in Mexico City.
26 S O L U T I O N S . TA I L O R- M A D E . MEXICO
Victor Alva rises early and heads for the bus. It is

already warm, and traffic is teeming. Cars and bus-
es, taxis, and small trucks all squeeze onto the over-
crowded roads. Yet somehow it is all under control.
Traffic is a way of life in Mexico City.
Alva, 25 years old, is a mason, one of the legions
contributing to the seemingly endless expansion
of Mexico’s bustling capital. High office buildings,
squat shopping malls, rows of apartments, and small
worker’s flats called viviendas—it is all part of the
dense urban sprawl, and it all must be built or tend-
ed to by men like Alva. With modern technology and
heavy equipment it is easy to overlook this fact: In
this day and age, construction is still greatly depend-
ent on the hard work and skill of individual men and
women.
As he does whenever he needs to buy bags of
cement, Alva is heading to Materiales Cuajimal-
pa, Felipe Delgado’s building supplies store in the
Huixquilucan district. Alva says that when he needs
cement only Holcim products will do, and only from
Delgado’s store. He appreciates the Holcim quality
and Delgado’s friendly, personal service. For the past
few months, however, he has had a further reason to
prefer Materiales Cuajimalpa: the Holcim Más loyal-
ty program.
“With Holcim Más,” he explains, “every time I buy
a bag of Holcim cement, I earn points which I can
“With Holcim Más, every time

I buy a bag of Holcim
cement, I earn points which I
Participants in the program earn points
for each purchase they make. These can redeem for prizes. In
points can be redeemed for prizes. The
two catalogs—there is one for the retailer
my case, I use them to get
and another for the end-user—contain
over 140 items. These run the gamut
tools for my work. It saves me
from in-ear headphones to trucks. money, and so helps increase
my income”.
VICTOR ALVA
Mason, Mexico City
redeem for prizes. In my case, I use them to get

tools for my work. It saves me money, and so helps
increase my income.”
USD 6.5m
The program was born of an effort by Holcim Mex-
ico to add value for retailers and end users. Unlike
most loyalty programs, both customer groups can
additional net sales enroll. That means whenever Alva buys a bag of Hol-
for Holcim Mexico cim cement at Delgado’s store, each of them earns
points.
For store owners, the program also has benefits
beyond the prizes. It helps retain customers and win
new ones—an important consideration these days.
“The market has been difficult in Mexico lately,” Del-
gado says. “Sales at many retailers are down. But
15,200
mine have remained steady, in great part thanks to
Holcim Más.”
This is exactly what the program was designed to
participating do. That it benefits Holcim as well, through increased
end-customers sales, makes it a true value-for-all solution.

It is mid-morning when Alva arrives at Delgado’s
store. The owner, a tall man with tousled hair and an
infectious grin, comes down to greet him and have
The Holcim Más program is available

throughout Mexico. Some 600 retailers
and 15,200 end users such as masons
are taking part. The program’s goal is to
increase sales of bagged cement by earn-
ing the loyalty of retailers and end-users
alike. In 2014, the program accounted
for USD 6.5 million in additional sales for
Holcim Mexico. Despite the challenging
market in the country, those Holcim re-
tailers enrolled in the program increased
sales significantly. Holcim retailers not in
the program often saw sales drop.
28 S O L U T I O N S . TA I L O R- M A D E . MEXICO
In Mexico, Holcim sells roughly 60 per-

cent of its cement in bags to customers
such as Victor Alva. The remaining 40
percent are bulk deliveries used for larger
construction sites such as infrastructure
projects and other major works.
a chat. Afterwards Alva goes to place his order. The

young woman behind the counter arranges for the
cement to be delivered to the job site, and makes
sure Alva’s points are credited to his account. Alva
then says his goodbyes and heads out to work.
“I have always favored this store and Holcim
cement,” he says as he leaves. “Holcim Más makes it
even better.”
30 S O LU T I O N S . TA I L O R- M A D E . VIETNAM
At the Duyen Hai power plant , the chi-

nese company GEDI used the cement
deep mixing (CDM) method to stabilize
the soils. In CDM, deep holes – up to
30 meters in this case – are bored into
the ground with a special drill. During
the drilling process a cement slurry is
injected resulting in a stabilization of the
soil column. In this way a foundation of
stabilized soil columns is created. It is a
very effective approach, but requires just
the right cement. After extensive testing,
GEDI chose Holcim Stable Soils (HSS) for
its job. HSS has been specially developed
for CDM. Among other things, it offers
better chemical compatibility to soft clay
soils than regular cement, while deliver-
ing twice the strength. That means con-
tractors need less cement per cubic meter
of soil, reducing the number of piles
required – and reducing the cost.
S O LU T I O N S . TA I L O R- M A D E . VIETNAM 31
A SOLID
F O U N D AT I O N
SOLUTION
Qing Li Wang, project manager for GEDI (Guangdong Electric Power

Design Institute) at the Duyen Hai 1 power plant which is under
construction on the coast of the Mekong Delta.
Captain Doan Minh Sang steers the “Sai-

gon”. The barge transports Holcim ce-
ment in a three-day trip over inland rivers
and canals in the Mekong Delta to the
construction side at Duyen Hai.
Qing Li Wang guides his visitors around the grounds structures on it. Before doing anything else, we need-
of the Duyen Hai 1 power plant with a clear sense of ed to stabilize the ground.”
pride. “Soon,” says the project manager with a smile, That’s where Holcim comes in. Its Holcim Stable
“we will generate electricity here for the first time – Soil (HSS) product has been designed expressly to
thanks in part to Holcim.” shore up weak earth. As part of a method known as
Duyen Hai 1 is the first of three new plants being cement deep mixing (CDM), HSS can be used to cre-
built by the Vietnamese government here on the ate a foundation of stabilized soil columns under the
Mekong Delta coast, near the city of Trà Vinh. While ground – turning swampy mud into terra firma.
these projects are bringing much needed jobs as well Wang works for Guangdong Electric Power Design
as power to the rapidly developing area, construction Institute (GEDI), the Chinese contractor building
has been anything but easy. Duyen Hai 1. He says HSS not only helped GEDI lay
The plants are located on an alluvial plain between the foundation for the plant, it also allowed them to
two of the Mekong’s major distributaries. It is a flat, build other important below-ground structures, like
watery land, dotted with rice paddies and shrimp the intake and outtake canals. “Holcim’s know-how
farms, and fronted by the sea. “The soil here is and ability to deliver large quantities to the extreme-
wet and soft,” says Wang. “You cannot build large ly remote location were key for us as well,” he adds.
1 DRILLING 2 INJECTION 3 FINISHING

Dril into the ground When at pile depth, start injection of Mix the soil and cement suspension while
while adding water cement suspension into the soil extracting the mixing tool to create the
CDM pile
Because of the remote location of Duyen

Hai, delivering the required amounts of
cement was a challenge for all involved.
To meet it, Holcim Vietnam developed a
detailed logistics concept, which included
a fleet of 16 barges. Eleven of the barges
transported the cement in jumbo bags,
each holding 1,000 kilos, and the other
five were specially equipped tanker barg-
es for bulk cement.
The Duyen Hai 1 coal-fired thermal

power plant covers 50 hectares of
coastal land between two of the
distributary mouths of the Mekong
River. At full capacity, it will gener-
ate 1,245 MW of power, contribut-
ing 7.5 to 8 billion kWh annually
to the region. Owned by Electricity
Vietnam (EVN), it is being built by
Guangdong Electric Power Design
Institute (GEDI), a Chinese contrac-
tor with headquarters in Guang-
zhou. Two other plants, Duyen Hai
2 and 3, are also under construc-
tion nearby. These too are relying
on Holcim for soil stabilization.
For Holcim Vietnam, success on this major project

required a concerted, firmwide effort. Its commercial
team worked closely with GEDI on initial evaluations
and the all-important trial mixes. Its consultants
supported GEDI with technical advice. The produc-
tion team ensured that volumes were increased to
meet the project’s demands. And its supply-chain
team tackled the complex delivery logistics.
This last was no mean feat, as Doan Minh Sang
can attest. He is the captain of one of the tank-
er barges Holcim used to transport HSS from its Thi
Vai cement grinding station to the site. Sang, who
has been a captain for eight years, made the run reg-
ularly. That meant taking on product at the pier at
Thi Vai and then making the 300-kilometer, three-
day trip over inland rivers and canals to Duyen Hai,
“Holcim’s know-how and abil-

ity to deliver large quantities
to the extremely remote loca-
tion were key for us as well”
QING LI WANG
Project Manager at GEDI
before returning for more. In this way, Sang and his

colleagues delivered some 150,000 tonnes of HSS to
the project, including over a crucial two-month peri-
od during the stabilization phase.
Back at Duyen Hai, Wang explains. “We had
planned four months for the stabilization but delays
left us only two, which meant we needed a supply
of more than 1,000 tonnes of HSS per day. In spite of
the rainy season, Holcim delivered – on many days
supplying nearly 1,300 tonnes from both Hon Chong
and Thi Vai plants. In China, where I come from, Hol-
cim is famous for its products and services. The com-
pany really lived up to its reputation on this job.”
1
VA LU E - D R I V EN
C O R P O R AT E
MANAGEMENT
Key Success Factors >> 38
Holcim Leadership Journey >> 44
Organization and Management >> 50
Innovation >> 58
Capital Market Information >> 62
VIETNAM R EGION ASIA PAC I FIC

HO CHI MINH CITY Asia Pacific is the region with the highest sales volume in
the Holcim Group. Population growth, the great need for
infrastructure, and increasing urbanization are the main
growth drivers. Roughly a third of sales come from this
Group region.
38 VA L U E - D R I V E N C O R P O R AT E M A N A G E M E N T KE Y SUCCESS FAC TOR S
Key success factors
Holcim’s vision is to provide foundations for society’s future.

To do so, the Group supplies customers around the globe
with cement, aggregates, ready-mix concrete, concrete
products, asphalt, and associated services and solutions.
From around 1,500 production sites located in all major
markets of the world, Holcim supports construction work
efficiently, sustainably, and safely. The Group seeks to grow
its business with the customers and societies it serves. As a
consequence, the asset footprint reflects the growth devel-
opment of the construction industry, with two-thirds of the
Group’s capacity located in the growing emerging markets
of Latin America and Asia.
Strategy supports program to increase rate of return on Building materials as core business
invested capital High-quality building materials as a business will
Holcim’s strategy is based on three principles of suc- continue to offer interesting opportunities, as global
cess: focus on the Group’s core construction materials population growth, high-density construction, and
businesses, targeted and broad-based geographical increasing aspiration levels continue to generate
diversification with continually improving positions steadily growing demand for better infrastructure
in growth markets, and a balance between global and housing. Many areas harbor a huge backlog of
strategic and local operational leadership. These demand in terms of both quantity and quality.
principles have proven effective throughout diverse
economic environments, allowing for decisive and The basis for Holcim’s success over decades has been
rapid response to changing business conditions. A delivering value-adding products, i.e. services and
good example of this is the Holcim Leadership Journey, solutions, with a clear focus on cement and aggre-
launched in May 2012 (see the following section). gates. For decades, the Group has attached great
importance to sustainability concepts, as the process-
VA L U E - D R I V E N C O R P O R AT E M A N A G E M E N T KE Y SUCCESS FAC TOR S 39
Central pillars of value creation Creating added

value is Holcim’s
paramount objec-
tive, an objective
that is based on
Creation of value the three strategic
pillars and deter-
Goal mines guidelines
Product focus Geographic Global Standards in the functional
Diversification Local Management sectors. The most
important founda-
tion on which
Strategy everything rests is
a workforce that
Sustainable Cost Customer Leadership Corporate
gives its best on
Environ- Manage- Excellence Social
a daily basis.
mental Per- ment Responsi-
formance bility
Mindsets
Base People
© Holcim Ltd
ing of limestone, clay, and marl and the quarrying Global presence
and processing of crushed stone, gravel, and sand Holcim has operations at roughly 1,500 sites in around
depend upon natural resources and significant energy 70 countries on every continent, including cement
input. In a number of countries, particularly in mature plants, aggregates operations, ready-mix concrete and
markets and in major urban areas, Holcim is also concrete element plants, asphalt facilities, and plat-
active in the ready-mix concrete, concrete products, forms for processing alternative fuels and raw materi-
and asphalt businesses. Global expert teams back als. The Group’s broad-based presence demonstrates
up these product offerings with a diverse range of the value of a balanced portfolio, as it smoothes out
services, product-specific consulting, and innovative cyclical fluctuations in individual markets and stabi-
system solutions specially conceived for major pro- lizes earnings.
jects. Tailored concepts for complex building projects
are another success factor in a number of locations. Through Holcim Trading, the Group also holds a lead-
Holcim runs these business units as profitable opera- ing position in cement, clinker, mineral components,
tions, not simply sales channels for cement. The oper- and solid fuels trading. Holcim Trading offers a full
ations are regularly monitored in order to enhance range of trading services to members of the Holcim
their profit contribution. Group, focusing mainly on supporting the purchase
and sale of such products on international markets.
Balance between global strategic and local operational

leadership
Marketing and selling products, services, and solu-
tions, extracting raw materials, operating cement
plants, and distributing building materials is a local
business. Most customers also operate locally or
regionally. This is why the operating companies are
Net Sales per Region 2014 2013 CEO. Holcim considers accidents on its sites unac-
Million CHF ceptable. The company is maintaining its target for
Asia Pacific 6,970 35.3% 7,282 35.9% lost-time injury frequency rate (LTIFR) of less than
Latin America 3,012 15.3% 3,349 16.5% 1.0. In line with best practice, the Group also moved
Europe 5,554 28.1% 5,611 27.6% to a total injury frequency rate (TIFR) with a target of
North America 3,336 16.9% 3,171 15.6% below 5.0. The most important risks, addressed by the
Africa Middle East 861 4.4% 884 4.4% “Fatality Prevention Elements,” are constantly moni-
tored.
Net sales mature versus emerging markets
100% In Holcim’s view, alongside occupational health and

51% 51% 52% 53% 51% safety, the following areas are also of vital importance
90%
80% for the Group companies and as such are also reflect-
70% ed in the goals of the Holcim Leadership Journey:
60%
50%
40%
30%
20%
10%
0% 49% 49% 48% 47% 49%

2010 2011 2012 2013 2014
Emerging markets
Mature markets
firmly anchored in their local environment and why

Holcim has always placed great emphasis on delegat-
ing operational and business responsibilities to Group
companies. However, Group-wide directives, which
make up the Holcim policy landscape, must be applied
and complied with globally. This particularly applies
to the Group-wide standards for the professional
behavior expected of all staff. Noncompliance with
the Holcim Code of Business Conduct is automatic
grounds for disciplinary sanctions.
Occupational health and safety has the highest prior-

ity. As a consequence, the company focuses on the
vision of “zero harm to people.” The Occupational
Health & Safety function reports directly to the Group
Customer excellence stands for creating more value for and social responsibility as integral components of its
the customer and higher and sustainable returns for strategy.
the company. The goal is to be the most customer-
focused company with highest customer loyalty in Holcim’s corporate culture is practiced on a Group-wide
the industry. Activities must center on creating value basis and can be summed up in the values “Strength.
for and in cooperation with customers. This must be Performance. Passion.”. In order to bring these values
reflected in the range of products and services offered to life, Holcim focuses on six behaviors. These princi-
and in the company’s communication and engage- ples represent what the Group stands for: integrity,
ment with customers. Innovations should respond to customer excellence, collaboration, drive for results,
changing and new expectations. develop yourself and others, change/inspirational
leadership.
Cost leadership is to continuously and creatively strive
for cost savings and efficiency gains on all levels of Continued value creation
the organization in order to achieve a highly com- The Group wants to grow for years to come. In the
petitive position in the relevant markets. Targets are past, Holcim achieved growth through acquisitions
defined for each area of the business. Cost manage- and by building new plants or plant expansions, in
ment means using the Group’s resources in the most particular in emerging markets. With the Holcim Lead-
efficient way while leveraging the Group’s global size ership Journey, the Group is extracting the growth
to gain a competitive edge. Hence, corporate func- potential of its current footprint and generates the
tional units and regional service centers support indi- necessary funds to support further profitable growth.
vidual Group companies in achieving their targets. This will allow the company to substantially reduce its
capital expenditure in the coming years.
Leadership encompasses the development of leaders
as an institutionalized practice. Holcim aspires to be In 2015 Holcim will conclude its extensive expansion
an employer that can attract, motivate, and retain strategy, allowing the Group to sustainably create
top leaders and talents. Leadership is to cultivate an value from its existing asset base. However, in the year
accountable leadership attitude on all levels of the under review, new capacity expansion projects were
organization as a way of life. Hence, all employees are commissioned in the cement segment, adding 4.3 mil-
provided with opportunities for systematic develop- lion tonnes of cement per annum.
ment and training. Leaders must demonstrate and be
role models for the Holcim values, Code of Business In Indonesia, the first kiln line of the new Tuban ce-
Conduct, and compliance requirements. ment plant was commissioned in mid-2014, adding
1.2 million annual tonnes of clinker capacity. The new
Sustainable development is a key strategic element, grinding plant at Port Kembla in Australia came on
as Holcim’s dependence on natural resources and its stream earlier in the year, with an annual capacity
long-term planning horizons make sustainable man- of 1.1 million tonnes. In Rabriyawas, India, cement
agement a strategic necessity for the company. This capacity was increased by 0.9 million tonnes and the
is why Holcim regards environmental performance Meghnaghat grinding station near Dhaka in Bangla-
desh added 0.7 million tonnes.
Cement capacity expansion within the Group in million tonnes 2015 and 2016
Company 2015 2016 Total
Holcim Indonesia 1.6 1.6
Holcim Lanka 0.6 0.6
ACC, India 2.5 2.5
Total Asia Pacific 4.7
Holcim Brazil 2.3 2.3

Total Latin America 2.3
Holcim US 0.5 0.5

Total North America 0.5
Total Group 7.0 0.5 7.5
Several projects are planned to be completed in 2015, Two plants in the USA are scheduled to complete per-
adding further clinker and cement capacity. In Sri formance upgrade and improvement projects in 2016:
Lanka, the Galle grinding station will expand its ce- the Hagerstown plant near Washington, D.C. and the
ment capacity by 0.6 million tonnes. The Barroso Ada plant in Oklahoma. In New Zealand, a new import
plant in Brazil will become fully operational, increas- terminal in Timaru and one in Auckland will be con-
ing annual cement capacity by 2.3 million tonnes. A structed to replace the existing cement plant at West-
new clinker line at the Guayaquil plant in Ecuador will port. In the second half of 2016 the Volsk plant upgrade
augment the clinker capacity by 1.4 million tonnes. In in Russia will be finalized, providing 1.8 million annual
Indonesia, the second clinker line of the Tuban plant tonnes of cement with high-efficiency production
will be commissioned, adding 1.6 million tonnes of ce-
ment capacity. In India, 2.5 million tonnes of additional
cement capacity will be brought into operation at the
Jamul plant along with its satellite grinding station in
Sindri.
Holcim Awards for the best sustainable construction During this year the Holcim Foundation published
projects another book in its series of outstanding examples
The Holcim Foundation for Sustainable Construc- of sustainable construction on all continents. “Benny
tion was established in 2003 to promote sustainable Farm,” a rehabilitated and upgraded social housing
construction and to underscore Holcim’s endeavors development in Montreal, exemplifies how sustain-
toward sustainable development. Since that time, able construction can be achieved by integrating
the Foundation, which is financed by the Group but users into the design process. The project, designed by
operates independently of it, has established a global Canadian architect Daniel Pearl, won the Global Hol-
network of architects, engineers, planners, and build- cim Awards Bronze in 2006.
ers and has linked the Holcim brand with the notion
of sustainable construction. The Board of the Holcim Foundation saw some per-
sonnel changes during the year: Yolanda Kakabadse
Among the main activities of the Foundation are the (Ecuador), Hans-Rudolf Schalcher (Switzerland), and
International Holcim Awards for Sustainable Con- Klaus Töpfer (Germany), who have crucially contrib-
struction, announced every three years. This competi- uted to the Foundation since its inception, stepped
tion, with prize money totaling USD 2 million, awards down and Marc Angélil (Switzerland), Alejandro Ara-
ecologically, socially, and economically outstanding vena (Chile), and Maria Atkinson (Australia) took their
projects for sustainable planning and construction. places. Information about the Holcim Foundation and
The competition is conducted in two phases: First the its activities is available on
best entries in the regions Asia Pacific, Latin America, www.holcimfoundation.org.
Europe, North America and, Africa Middle East are
identified, and then the regional main prize win-
ners are qualified to compete for the Global Holcim
Awards, which are conferred the following year.
A total of over 6,100 projects were submitted in

the current fourth cycle. Roughly half of them were
entered in the “Next Generation” category for visions
of students and professionals not older than 30 years.
2,514 projects from 152 countries met the formal entry
criteria and were assessed by five independent juries.
During the second half of the year, a total of 62 pro-
jects in the various regions were awarded at ceremo-
nies conducted jointly with the local Holcim Group
companies in Moscow, Toronto, Medellín, Beirut, and
Jakarta.
44 VA L U E - D R I V E N CO R P O R AT E M A N AG E M E N T HOLCIM LEADERSHIP JOURNEY
Holcim Leadership Journey
With total realized benefits of CHF 1.848 billion by the end

of 2014, Holcim has exceeded its contribution to operating
profit objective of the Holcim Leadership Journey. The Group
had committed to a target of a contribution to operating
profit of CHF 1.5 billion by the end of 2014, compared to the
base year 2011 and under similar market conditions. In the
year under review the contribution of the Holcim Leadership
Journey to the Group’s operating performance amounted to
CHF 748 million. The Customer Excellence stream contribut-
ed CHF 248 million to this result, and cost initiatives con-
tributed CHF 500 million.
The Holcim Leadership Journey was launched Group- management, stronger leadership, intensified social
wide in May 2012, with the aim to sustainably improve dialog with all stakeholders, and an improved legal and
return on invested capital. Value creation is measured compliance framework could be realized.
with a focus on operating profit and capital expendi-
ture. Since its introduction, around 6,000 initiatives Organizational and process efficiency
have been launched and successfully implemented un- As part of the Holcim Leadership Journey several func-
der the two main components of customer excellence tional and regional organization structures were
and cost leadership. A Project Management Office was adjusted to contribute as efficiently as possible to the
established to centrally manage and coordinate the different focus topics. Processes and tools were stand-
program and to foster cross-stream and cross-regional ardized. Procurement, as one example, was set up in a
collaboration. The entire Group has been mobilized completely new form in order to leverage the scale of
and engaged and higher transparency and better shar- the whole Group and reap benefits respectively.
ing of good practices achieved, all leading to an im-
proved focus on customers and innovation. In addition, Transparency was increased through the implementa-
lower cost base and net working capital, reduction of tion of coordinated financial tracking and qualitative
investment cost per tonne of new capacity, better talent initiative tracking under the Holcim Leadership Journey.
VA L U E - D R I V E N CO R P O R AT E M A N AG E M E N T HOLCIM LEADERSHIP JOURNEY 45
While financial tracking shows the actual stream tive marketing and sales capabilities, and the overall
performance achieved, qualitative initiative track- bottom-line impact.
ing allows understanding of the activities behind the
figures. Together they provide a holistic view of the Customer centricity enabled the entire Holcim
actual performance in the Group. organization to become more customer oriented in
all its activities and to get a deeper understanding
The Holcim Leadership Journey required the Group to of the needs of its customers. This focus allowed for
further focus on foundational elements. In line with improved value for customers with differentiated
the Group’s strategic approach, highest priority was products and services and a superior customer experi-
given to occupational health and safety with the goal ence, as well as capturing more value for Holcim in
of “zero harm to people”. Holcim has built a broader the form of privileged relationships, premium com-
range of talents and enhanced the experience of its pensation, and superior brand equity in the industry.
leaders in management roles and functions. Intensi-
fied social dialog with all stakeholders has also been Distinctive marketing and sales capabilities were
established. Holcim will continue to leverage its legal enhanced in a substantial way across the key com-
and compliance framework and live up to its values. mercial levers throughout the Group – from market-
ing to pricing and margin management, to customer
Customer Excellence value management and loyalty, to selling and brand-
The Customer Excellence stream addresses three coming. This contributed to strengthening margins, devel-
plementary objectives: customer centricity, distinc- oping the best customer portfolio, and becoming a
top-quartile industrial company in the medium and
long term.
The Holcim Leadership Journey Model
Holcim Leadership Journey

Aspiration
Sustainable Development
Manufacturing efficiency
Customer Excellence
Waste Management
Investment Costs
Procurement
Fixed Costs
Innovation
Logistics
Customer and Operational Excellence
People Occupational Legal

Development Health and Safety Compliance
Values & Behaviors

Foundation
© Holcim Ltd
Despite a challenging market environment particular- Logistics

ly in 2013, Customer Excellence laid important ground- Logistics is a key topic within Holcim not only because
work for Holcim, achieving commitment and dedica- of the size of the Group but also due to the different
tion to the customer on a higher level. As a result, the locations and the diversity of the plants. As part of
total contribution amounted to an improvement in the Holcim Leadership Journey, the Logistics stream
operating profit of CHF 414 million by the end of 2014. launched and executed several local programs. Major
contributions were achieved through network opti-
Customer Excellence is now firmly implanted in the mization, through which inter-unit and distribution
Group’s culture, serving as a sustainable base for real- flows were optimized. Third-party logistics sourcing
izing future benefits. assessments and improvements, increased capacity
utilization, and other operational planning programs
Cost leadership supported the generation of savings.
Energy & alternative fuels and raw materials (AFR) Logistics realized total savings of CHF 267 million,
The Energy stream recorded substantial improve- overachieving the announced target of CHF 250 mil-
ments in energy efficiency that contributed to reduc- lion.
ing energy consumption. Initiatives in the areas of
electrical energy management, grinding and fuel-mix Procurement
optimization, and productivity improvement were As part of the comprehensive transformation of
key drivers for the performance achieved. In addition, procurement across the Group, the global category
Holcim launched and implemented the STAAR pro- management approach has been firmly established.
gram (strategic and technical assessment of AFR busi- The category management approach relies upon
ness), further increasing the use of alternative fuels cross-functional interaction and requires integrated
and raw materials and supporting the Sustainable management. Within the Holcim Leadership Journey,
Development Ambition 2030 of the Group. The imple- global category management has been rolled out
mentation of the compliance program for ACERT (AFR ahead of schedule, with global as well as regional
certification) ensured transparent and sustainable governing councils put in place. Focus is on workforce
operation of the AFR business under the strong global training and capability building to ensure sustainable
Geocycle brand. results.
Several ongoing or completed activities have created The procurement transformation is nearly complete,
a sustainable base for continuous efficiency improve- with strong support and collaboration from all areas
ments, which will be leveraged further in the future. of the business. The Procurement function has firmly
Energy and AFR exceeded their targeted savings of established a base for the category management
CHF 300 million by CHF 24 million, contributing total approach to fully exploit its potential. The projected
benefits of CHF 324 million. savings potential of CHF 250 million was exceeded
with a total contribution of cost savings of CHF 438
million.
Fixed costs
Holcim has always strived for optimization and reduc-
tion of its fixed costs. The economic environment in
2012 and subsequent years compelled the Group to
adapt its structure and footprint to the challenging
market conditions. A variety of local initiatives was
executed, which contributed substantially to the sav-
ings achieved through the Fixed Costs stream. Signifi-
cant traction was achieved already in the first full year
of the Holcim Leadership Journey, and the contribu-
tion target for total fixed costs (CHF 250 million) was
exceeded, with CHF 255 million being realized already
in 2013. In 2014 the Fixed costs stream achieved addi-
tional savings of CHF 111 million. Contributing to the
stream’s performance were not only local initiatives
but also process excellence, further restructuring
measures, and the establishment of business shared
service centers. The complementary strong emphasis
on net working capital reduction supported this devel-
opment.
The Fixed costs stream contributed cumulative sav-

ings of CHF 405 million, representing a key factor in
the success of the Holcim Leadership Journey.
Savings in million CHF 2014 realized cumulative since 2012 Target by end of 2014
Increase in customer excellence 248 414 >500
Cost leadership 500 1,434 >1,000

Energy and alternative fuels 97 324 >300
Logistics 105 267 >250
Procurement process 187 438 >250
Fixed costs 111 405 >200
Total contribution 748 1,848 >1,500
Additional CAPEX net 46 264 100–180
Financial contribution of the Holcim Leadership Journey

and Return on Invested Capital
The Holcim Leadership Journey has achieved total
benefits of CHF 1.848 billion since 2011 and as such
has significantly exceeded the improvement target of
CHF 1.5 billion. Whereas the savings in 2012 were mod-
est, with a contribution of CHF 158 million, Holcim
managed to realize continuous performance improve-
ments, generating additional benefits of CHF 943 mil-
lion in 2013 and CHF 748 million in 2014.
Thanks to the Holcim Leadership Journey absolute

operating profit as well as the operating profit mar-
gin increased, despite partially adverse markets and
extraordinary effects such as merger costs. Group
return on invested capital before tax (ROICBT) reached
9.0 percent in 2014 (2013: 9.1 percent). After adjust-
ing for merger and restructuring costs, the ROICBT
increased to 9.4 percent.
Holcim Value Added (HVA)1 The Group plans to focus on major areas as follows:
HVA before taxes in million CHF ROIC before tax in %
24%
Occupational Health and Safety
1,200
8.3 6.5 6.8 9.1 9.0
1,000 22%
20%
Structural and strategic direction
800
18%
• Proactive portfolio management
600
16%
• Shift to asset-lighter demand/supply strategies
400
14%
• Continuation of footprint optimization in aggre-
200
12%
gates, concrete, and construction materials
02
10%
• Further development of the waste-management
–200
8%
as business
–400
6%
• Continuation of the Sustainable Development
–600
4%
Ambition
–800
–1,000 2%
0%
Operational efficiency
–1,200
• Continuous performance improvement program
–1,400
targeting Customer Excellence and cost leadership
–1,600
• Focus on existing operational projects and initia-
–1,800
2010 2011 2012 2013 2014 tives with only limited amount of new projects
1
Excluding cash and cash equivalents. initiating
2
WACC before tax of 11.76 percent.
• Global Talent and succession management, and
drive of values and behaviors
The Holcim Leadership Journey continues Organization and progress

The Holcim Leadership Journey will continue on sev- • Standardization of processes
eral levels beyond 2014 as ongoing cost inflation and • Alignment in organizational structures
challenging market conditions require continuous • Structured and aligned performance management
performance improvement. Beyond 2014, the Holcim approach
Leadership Journey spirit will persist and its princi-
ples will remain unchanged. Holcim will continuously
focus on further improving its performance.
50 V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T O R G A N I Z AT I O N A N D M A N A G E M E N T
Organization and management
New Chairman of the Board and streamlined regional

responsibilities for Executive Committee members
Efficient management and control

Holcim’s corporate governance policy was developed to Andreas von Planta did not stand for reelection.
ensure transparent and sustainable value creation by
clearly delineating responsibilities, management pro- During 2014 Holcim also announced a number of
cesses and organization, performance monitoring, and changes in the Group’s Senior Management:
decisions on policy principles and controls.
Urs Bleisch, previously Corporate Functional Manager
The Group’s credibility and reputation rely on the and member of Senior Management of Holcim Ltd,
confidence of investors, regulators, business partners, became member of the Holcim Executive Committee,
the public at large, and the employees as well. Holcim keeping his responsibilities for Holcim Technology Ltd,
is therefore adapting its corporate governance policy Holcim Group Services Ltd, and the project manage-
where necessary. The guiding principles of Holcim’s cor- ment office of the Holcim Leadership Journey.
porate governance are described on pages 98 to 116.
Alain Bourguignon, previously Area Manager in
In 2014 a number of changes took place at the Board charge of Canada, UK, and the USA and member of
level: Senior Management of Holcim Ltd, was seconded to
the joint Divestment Committee that was established
Wolfgang Reitzle was elected Chairman of the Board of by Holcim and Lafarge in the context of their planned
Directors of Holcim Ltd at the annual general meeting. merger.
He joined the Board in 2012. Rolf Soiron did not stand
for reelection after being Chairman for the past 11 years As a consequence, Roland Köhler, member of the
and a member of the Board of Directors for 20 years. Holcim Executive Committee in charge of Conti-
nental Europe, also took over responsibility for the
Jürg Oleas was elected to the Board of Directors. He is UK. Andreas Leu, member of the Holcim Executive
the CEO of GEA Group AG, a Dusseldorf-based mechani- Committee in charge of Latin America, also assumed
cal engineering company listed on Germany’s MDAX responsibility for the USA and Canada.
stock index.
All these nominations became effective October 1,
In line with the Ordinance against Excessive Compensa- 2014.
tion in Public Corporations (OaEC), each member of the
Board of Directors and the members of the Nomination
& Compensation Committee proposed by the Board of
Directors were reelected individually by the sharehold-
ers for a term of office of one year. Erich Hunziker and
V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T O R G A N I Z AT I O N A N D M A N A G E M E N T 51
Board of Directors Executive Committee Area Management Status as at

January 14, 2015.
Wolfgang Reitzle Bernard Fontana Horia Adrian
Chairman, Chief Executive Officer Daniel Bach
Chairman of the Governance & Thomas Aebischer Alain Bourguignon
Strategy Committee Chief Financial Officer Dominique Drouet
Beat Hess Urs Bleisch Urs Fankhauser
Deputy Chairman Holcim Technology, Holcim Group Kaspar E.A. Wenger
Alexander Gut Services, Holcim Leadership Journey
Chairman of the Audit Committee Roland Köhler Auditors
Adrian Loader Europe Ernst & Young AG
Chairman of the Nomination & Andreas Leu
Compensation Committee Americas Management Structure
Jürg Oleas Bernard Terver See organizational chart on pages
Thomas Schmidheiny South Asia and Africa Middle East 56 and 57.
Hanne Birgitte Breinbjerg Sørensen Ian Thackwray
Dieter Spälti East Asia Pacific and Trading Changes
Anne Wade See also Corporate Governance on
page 98 ff.
Secretary of the Board of Directors
Peter Doerr
In addition, Onne van der Weijde, Area Manager for Line and functional management responsibility
India until April 25, 2014 and member of Holcim Sen- Holcim’s hierarchical structures are flat and its divi-
ior Management, left Holcim effective June 1, 2014. sions of responsibility clearly defined, both at Group
Member of the Holcim Executive Committee Bernard level and in the individual Group companies, in order
Terver, responsible for the Indian subcontinent, subse- to ensure efficiency and knowledge sharing in the
quently took over direct responsibility for the country. Group and to support fast implementation of new
processes and standards.
Dominique Drouet, CEO of Holcim Morocco, was
appointed Area Manager for Africa Middle East effec- The operating units fall under the line responsibility
tive January 1, 2015. He assumed this responsibility in of individual Executive Committee members, who are
addition to his local role. Javier de Benito, previously assisted by Area Managers. If the Group companies
Area Manager for Africa Middle East, decided to leave are to strengthen their cost and market leadership
Holcim to take up a new challenge outside the Group. in their markets, they need entrepreneurial room to
manoeuver as well as support from the Group in the
Jacques Bourgon has decided to pursue other chal- form of specific know-how and predefined param-
lenges outside the Group and left the Group at the eters. The Group’s managers, the regions, the coun-
end of 2014. tries, and local sites are assisted by service centers at
global and regional levels and by corporate staff units
at a global level. In line with the Holcim Leadership
Journey (see pages 44 to 49), these functions focus
more intensely on generating added value throughout
the entire Group. Striking the balance between local
competence on the one hand and appropriate support
or intervention from Group headquarters on the other
is a subject of permanent attention.
Doing business with integrity The Code of Business Conduct can be found at www.
Holcim’s culture is to conduct all business with integrity holcim.com. Each Group company is responsible for
and in accordance with the highest ethical standards. incorporating these principles into its employee-related
The Group’s credibility in the communities in which contracts and training activities.
it operates depends upon working together to build a
sustainable future based on fairness and honesty. With Noncompliance with these rules is not tolerated and
this in mind, in 2014 Holcim revised its Code of Business results in disciplinary measures.
Conduct, which sets forth the principles by which busi-
ness is to be conducted worldwide. The code is firmly Holcim is one of the Swiss companies that have pledged
anchored in the Group’s Values: Strength. Performance. to observe the ten principles of the UN Global Compact
Passion. on human rights, labor, the environment, and anti-
corruption.
Holcim’s Code of Business Conduct is the framework
for guiding the behavior of all employees. It guides the
way of doing business, and it provides examples to help
employees when they are confronted with challenging
situations in their daily work. Holcim applies a zero-
tolerance policy. Measures have been introduced to
ensure that the Group companies comply with the Code
of Business Conduct as well as applicable legislation
and the relevant regulations. These include a centrally
coordinated training program and instructions on good
business conduct in line with modern competition and
anti-corruption law. Training and support materials are
continuously updated in line with the latest develop-
ments in competition and anti-corruption law.
Communication and disclosure are central to Holcim’s

culture of integrity. The Group aims to ensure that all
Holcim employees have the tools, resources, and infor-
mation needed to make the right decisions. This is why
the Holcim Integrity Line, a global ethics advisory and
reporting system that complements existing advisory
and reporting avenues, was launched in 2014.
Business Risk Management identifies risks and Internal Audit as an important monitoring instrument
opportunities The Group’s approach to internal control is based on
The Group Risk Management function supports the the underlying principle of management’s account-
Board, the Executive Committee and the management ability for risk and control management. Management
teams of the Group companies in the identification, in the Group is responsible for implementing, operat-
monitoring and management of risks. The objective ing, and monitoring of the system of internal controls,
is to systematically recognize major risks as well as which is designed to provide reasonable assurance of
opportunities. In focus are a wide range of strategic achieving business objectives and fulfilling its exter-
and business risk types. Group Risk Management nal obligations and commitments.
actively involves the Group companies, the corporate
functions, the Executive Committee and the Board in The Internal Audit function at Holcim has the respon-
the risk assessment process. sibility to:
Identified risks are evaluated, and countermeasures Perform the activities set out in the internal audit
are proposed and implemented at the appropriate plan, including any special tasks or projects approved
level. The Group’s risk profile is established by top- by the Audit Committee
down, bottom-up and functional risk assessments.
The Board of Directors receives regular reports on Evaluate the effectiveness of the governance process
important risk analysis findings (further information in mitigating the risks
see also pages 105 and 106).
Report significant observations and findings to the
Audit Committee and Executive Committee
Maintain competent staff with sufficient knowledge,

skills, experience, and training to meet the require-
ments of this charter
Maintain and update the internal audit methodology

and process whenever appropriate
Focus on joint objectives

Holcim systematically measures performance. Com-
pensation systems are designed to motivate man-
agement to perform at an above-average level and
at consistently high standards. A standardized vari-
able compensation system is in place for the most
senior executives. Salaries are calculated not only
on the basis of financial objectives but also in light
of individual goals (see the Remuneration Report on
pages 118 to 130). A significant proportion of variable
compensation is currently paid in the form of Holcim
shares locked in for a period of three to five years.
This system strengthens the shared focus on a long-
term increase in the Group’s performance and value.
The internal control system (ICS) for presenting

financial statements, conforming with the require-
ments of Art. 728a of the Swiss Code of Obligations
and Swiss Auditing Standard 890, has proved to be
sound. It increasingly covers the additional areas of
business ethics and integrity.
Organization Chart
Status as at
Board of Directors Holcim Ltd
January 14, 2015
Audit Committee
Bernard Fontana
CEO
Internal Audit1
Executive Committee Bernard Terver Ian Thackwray Andreas Leu
Area Managers Dominique Drouet Daniel Bach
Line and functional South Asia East Asia Pacific Americas Corporate Relations
responsibility Africa Middle East Trading Human Resources
Legal & Compliance
Occupational
Health & Safety
Strategy
1
Internal Audit reports to the Audit Committee
Governance & Strategy Committee
Nomination & Compensation Committee
Roland Köhler Thomas Aebischer Urs Bleisch

CFO
Alain Bourguignon Horia Adrian

Urs Fankhauser
Kaspar Wenger
DivCo Europe Controlling Aggregates &

Finance & Treasury Construction Materials
Group Customer Excellence

Structure & Tax Cement
Investor Relations Manufacturing
IT CAPEX Projects
Merger & Innovation

Acquisitions Logistics
Procurement Sustainable
Risk Management Development
Alternative
Fuels & Resources
Program
Management
Office
58 V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T I N N O VAT I O N
Innovation
Innovation at Holcim is fundamental to meeting customers’

needs and creating value not only for them but also for the
entire Group. From product technology to sustainable con-
struction and business model innovation, Holcim strives to
deliver innovation holistically.
Innovation goes beyond the Group’s core products. Hol- Patent management
cim aims to achieve leadership in driving sustainability Holcim derives its patent strategy from its business
throughout the building life cycle by maximizing cost and innovation strategy. The Group patents inno-
efficiency along the entire supply chain, meeting cus- vative developments to reinforce its position as a
tomers’ needs exceptionally well, and offering solutions preferred solution provider and to ensure its competi-
all along the construction value chain. Holcim delivers tive advantage in strategically important innovation
this by fostering an innovation culture in which employ- fields, using specific patent strategies for each field.
ees collaborate and innovate with passion. An aligned innovation process ensures a strong link
between Innovation and Patent Management to pro-
Sustainable construction tect the intellectual property that is developed. Today
Efforts in sustainable construction focus on the entire Holcim has about 60 patent families and approxi-
life cycle of applications of Holcim materials in cus- mately 450 granted patents or patent applications,
tomers’ projects. Equally important for Holcim is to establishing the Group as one of the leading cement
support partners – whether real estate investors and companies worldwide in patenting.
developers, local communities, or building users – in
achieving their own sustainable value creation. As a Business model innovation
leading actor in the construction industry, Holcim is Business model innovation is a strategic focus area
committed to using resources efficiently and acting in for Holcim in its efforts to sustain long-term success.
an environmentally and socially responsible way, tak- Innovative business models complement new product
ing into consideration effects that reach far beyond introductions by providing new mechanisms for value
its own operations. In accordance with the Holcim creation and value capture and engaging the entire
Sustainable Development Ambition 2030, the Group’s construction value chain. To tackle the challenges
sustainable construction portfolio is an integral ele- ahead, Holcim has developed a systematic business
ment for achieving the target of generating a third of model innovation approach aiming to support inno-
revenue through sustainability-enhanced solutions. vators in designing and implementing new business
models and thereby leveraging the overall innovation
potential of the Group.
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The six innovation fields of Holcim
1. 2. 3. 4. 5. 6. Innovation
Integrated New materials/ Low-carbon Low-energy Waste/recycling Lean/clean/ Fields
market solutions functionalities solutions solutions opportunities efficient
operations
Increase value Increase value Increase value Increase value Increase value Increase value Goals
by combining by using new by reducing by using less by seizing new through leaner
products, services materials and the CO2 footprint or sustainable opportunities assets, improved
and business enhancing throughout energy sources in the waste efficiency and
models functionalities the construction and recycling less emissions
lifecycle business and waste
© Holcim Ltd
Focus on six innovation fields only to build their own houses but to establish their
Holcim continues to focus on six strategic innovation own businesses as tradespeople. Sustainable con-
fields that offer the highest potential to add value. struction techniques are promoted by using locally
The following examples illustrate a few of Holcim’s sourced materials and incorporating alternative mate-
innovative achievements. rials like fly ash, which significantly reduces CO2 emis-
sions. This example of business model innovation is
1. Integrated market solutions a sustainability-enhanced solution that reduces envi-
ACC, India: Green Building Centres ronmental impact and provides lasting socioeconomic
India faces a considerable housing shortage, and improvement.
many homes are built by unskilled practitioners with
poor construction materials. The ACC Green Build-
ing Centres provide a simple and complete solution
for the low-cost construction segment in rural areas.
The key success factor is the combination of offer-
ing locally produced and easy-to-use construction
solutions together with training courses on how to
produce and apply these products in the rural context.
The construction products are produced in the Green
Building Centres by workers trained in the center and
using in-house industrial machinery, thereby creat-
ing jobs and building trade capabilities. These simple
construction products enable comfortable, safe, and
affordable housing solutions. Training in the Green
Building Centres gives people the skills they need not
60 V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T I N N O VAT I O N
2. New materials/functionalities 4. Low-energy solutions

Holcim France: High-performance concrete Fan efficiency improvement
With the introduction of Opticeo®, Holcim France The multiplication of low-energy solutions such as fan
developed an innovative solution for the high-perfor- efficiency improvement by using online measuring
mance concrete and high-durability market. The range and monitoring tools continued successfully during
of binders is complemented with related services, 2014. Implementation has been carried out in 34 oper-
including support in concrete design and performance ating companies, covering 93 percent of all larger fans
testing. As a premixed ready-to-use hydraulic binder, in the Holcim Group. The year closed with a rate of
the new product provides advantages in concrete 80 percent global implementation. Holcim is commit-
buildings and structures, civil engineering works, and ted to continue the multiplication of such solutions
precast concrete elements. And due to its color, it also to identify low performing assets, take the necessary
allows production of light-colored concrete. measurements and therefore substantially reduce the
consumption of electrical energy.
3. Low carbon solutions
Holcim Switzerland: Alternative mineral components for
composite cements
New customized cement types using alternative
mineral components like mixed rubber granulate are
being developed. These new customized cement types
can be used for making lean concrete and concrete
for construction purposes with no specific durability
requirements. The approach is to produce new types
of composite cements with alternative mineral com-
ponents that are directly milled or mixed together
with the cement clinker and other constituents. By
using alternative semi-reactive materials directly in
the cement production process, CO2 emissions can
be reduced and natural resources conserved, making
this a sustainability-enhanced solution. The solution
closes the material cycle for construction materials
like cement and concrete and prevents unnecessary
landfilling.
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5. Waste/recycling opportunities 6. Lean/clean/efficient operations

Ecorec Eastern Europe: Mobile sorting line for municipal Roller-driven vertical roller mill
solid waste To establish an improved concept for vertical roller
Most municipal solid waste in Eastern Europe is mills, Holcim collaborated with a main equipment
dumped into landfills. Holcim’s local waste manage- supplier in France to jointly develop a set of modifica-
ment unit ecorec offers mobile sorting lines to com- tions and optimizations. Combining their technical
panies that collect municipal waste. The mobile sort- knowledge in mills, the two companies engineered
ing line offers flexibility and extends the waste pre- design modifications that reduce power consumption
processing service. By sorting, the companies recover without compromising the high-quality production of
valuable waste for recycling and the remaining useful high-strength ordinary Portland cement. The first roll-
waste is sent to ecorec pre-processing plants where er-driven vertical roller mill was implemented using a
it is turned into alternative fuel. This provides Holcim step-by-step approach. It is the world’s first applica-
a stable and long-term alternative fuel supply and tion of this type of mill used to produce high-strength
reduces landfill volumes. ordinary Portland cement.
Holcim Innovation Fund

The Holcim Innovation Fund has proven to be a strong
incentive to drive innovation across the Group and
foster an innovation culture. Several strategic innova-
tion initiatives around the world have been funded in
order to develop new solutions that can be multiplied,
delivering growth and value to Holcim’s customers.
62 V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T C A P I TA L M A R K E T I N F O R M AT I O N
Capital market information
The Holcim Leadership Journey gained momentum in 2014 and

made substantial contributions to the Group’s results. A strong
recovery in the United States and the United Kingdom and an
improving sentiment in emerging markets mainly India and
Mexico were slightly offset by a slowdown in continental
Europe. With a total contribution of over CHF 1.8 billion, the
Holcim Leadership Journey’s target of 1.5 billion in operating
profit contribution has been significantly exceeded. As a result
Holcim’s return on invested capital ROICBT improved (adjusted
for restructuring and merger related cost).
Performance of Holcim share versus Swiss Market Index (SMI)

Holcim CHF 140
registered share
SMI (adjusted)
CHF 120
Swiss Market
rebased against
Holcim share price
CHF 100
CHF 80
CHF 60
CHF 40
CHF 20
CHF 0 2010 2011 2012 2013 2014 2015

V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T C A P I TA L M A R K E T I N F O R M AT I O N 63
Equity markets remained volatile throughout 2014 as Listings

geopolitical tensions, a weakening economic situation Holcim is listed on the SIX Swiss Exchange. Its
in Europe, and the oil price deterioration towards the shares are traded on the Main Standard of SIX Swiss
end of 2014 prevented a stable development. Share Exchange. Each share carries one voting right. At year-
prices recovered somewhat during the year however end 2014, the company’s market capitalization stood
experienced a massive drop in October with a number at approximately CHF 23.3 billion.
of dramatic sell-offs and rebounds as a result of grow-
ing fears about the global economic outlook and the Additional data
US Federal Reserve raising interest rates sooner than ISIN CH0012214059
expected. Holcim’s share price started the year in line Security code number 1221405
with the market but then was significantly boosted Telekurs code HOLN
by the announcement of the planned merger with Bloomberg code HOLN VX
Lafarge in April 2014. After a high of CHF 82.80 begin- Thomson Reuters code HOLN.VX
ning of June, Holcim shares corrected and ended the
year at CHF 71.35 underperforming the Swiss Market
Index SMI slightly. The average trading volume in 2014
amounted to approximately 1.1 million shares a day.
Distribution of Holcim shares and breakdown of Dividend policy

shareholders Dividends are distributed annually. In 2003, the
The majority of shares held outside Switzerland are Board of Directors determined that one-third of
owned by shareholders in the UK and the US. Group net income attributable to shareholders of
Holcim Ltd should be distributed. For the 2014 finan-
Geographical distribution cial year, the Board is again proposing a payout from
Switzerland 46% the capital contribution reserves corresponding to
Other countries 23% last year’s amount of CHF 1.30 per registered share.
Shares pending registration of transfer 31% The payout is scheduled for April 17, 2015.
Breakdown of shareholders Weighting of the Holcim registered share

by number of registered shares held in selected share indices
1–100 8,797 Index Weighting in %
101–1,000 27,574 SMI, Swiss Market Index 1.49
1,001–10,000 5,165 SPI, Swiss Performance Index 1.26
10,001–100,000 477 SLI, Swiss Leader Index 3.19
> 100,000 104 BEBULDM, BE500 Building Materials Index 20.30
SXOP, Dow Jones STOXX 600 Construction 8.17
Free Float FTSE4Good Europe Index 0.25
Free float as defined by the SIX Swiss Exchange stands Sources: Bloomberg, FTSE Index Company, end-December 2014.
at 69 percent.
Information on Holcim registered shares

Further information on Holcim registered
shares can be found at www.holcim.com/investors.
V A L U E - D R I V E N C O R P O R A T E M A N A G E M E N T C A P I TA L M A R K E T I N F O R M AT I O N 65
Key data Holcim registered share

Par value CHF 2 2014 2013 20121 2011 2010
Number of shares issued 327,086,376 327,086,376 327,086,376 327,086,376 327,086,376
Number of dividend-bearing shares 327,086,376 327,086,376 327,086,376 327,086,376 327,086,376
Number of shares conditional capital 2
1,422,350 1,422,350 1,422,350 1,422,350 1,422,350
Number of treasury shares 1,219,339 1,522,510 1,736,538 7,270,081 7,131,083
Stock market prices in CHF
High 83 79 68 76 85
Low 62 63 49 43 60
Average 73 69 58 60 71
Market capitalization (billion CHF) 23.3 21.8 21.9 16.4 23.1
Trading volumes (million shares) 266.8 215.0 231.4 357.6 378.8
Earnings per
dividend-bearing share in CHF3 3.95 3.91 1.89 0.86 3.69
Cash earnings per
share in CHF4 7.67 8.56 8.16 8.61 11.44
Consolidated shareholders’ equity
per share in CHF5 53.49 49.77 50.52 52.62 56.57
Payout/dividend per
share in CHF 1.306 1.30 1.15 1.00 1.50
Dividend yield (%) 1.79 1.88 1.97 1.67 2.11
1
Restated due to changes in accounting policies.
2
Shares reserved for convertible bonds.
3
EPS calculation based on net income attributable to shareholders of Holcim Ltd weighted by the average number of shares outstanding
(see note 16).
4
Cash EPS calculated based on cash flow weighted by the average number of shares outstanding.
5
Based on shareholders’ equity – attributable to shareholders of Holcim Ltd – and the number of dividend-bearing shares
(less treasury shares) as per December 31.
6
Proposed by the Board of Directors for a payout from capital contribution reserves.
Major shareholders Registration in the share register and restrictions on

Information on major shareholders can be found on voting rights
page 232 of this report. On request, purchasers of registered shares are
entered in the share register as voting shareholders
Disclosure of shareholdings provided that they expressly declare that they
Under Art. 20 of the Swiss Federal Act on Stock acquired the shares in their own name and for their
Exchanges and Securities Trading (Stock Exchange own account. The Board of Directors will enter
Act), whosoever, directly, indirectly or in concert individuals whose requests for registration do not
with third parties, acquires or disposes of shares, include an express declaration that they hold the
for his own account, in a company incorporated in shares for their own account (nominees) in the share
Switzerland whose equity securities are listed, in register as shareholders with voting rights, provided
whole or in part, in Switzerland and thereby attains, that such nominees have concluded an agreement
falls below, or exceeds the threshold of 3, 5, 10, 15, with the company concerning their status and are
20, 25, 331⁄3, 50, or 662⁄3 percent of the voting rights, subject to recognized banking or financial market
whether or not such rights may be exercised, shall supervision. The Board of Directors has issued the
notify the company and the stock exchanges on applicable Registration Regulations which can be
which the equity securities in question are listed. found on the Holcim webpage.
Important shareholders are disclosed on page 232.
Current rating (February 2015)

Standard & Poor’s Fitch Moody’s
Long-term rating BBB, outlook stable BBB, outlook stable Baa2, outlook negative
Short-term rating A-2 F2 P-2
Financial reporting calendar

Annual General Meeting of shareholders April 13, 2015
Ex date April 15, 2015
Payout April 17, 2015
Results for the first quarter 2015 May 5, 2015
Half-year results 2015 July 29, 2015
2
S U S TA I N A B L E
DEVELOPMENT
Environmental Commitment
and Social Responsibility >> 68
Human Resources >> 74
INDIA REGION INDIA

MUMBAI Holcim possesses substantial capacities on the Indian
subcontinent. The positive economic momentum in India
is one key to the Group’s success. The two largest Group
companies in the region, Ambuja Cements and ACC, boast a
cement capacity of over 60 million tonnes.
68 S U S T A I N A B L E D E V E L O P M E N T E N V I R O N M E N TA L C O M M I T M E N T A N D S O C I A L R E S P O N S I B I L I T Y
Environmental commitment and social responsibility
Creating value for all stakeholders in a sustainable manner

requires balancing economic value creation with environmen-
tal and social responsibility. Holcim has been continuously
recognized for its efforts in this.
Occupational health and safety – Rising to the challenge in culture is reflected in the safety key performance
Occupational health and safety is Holcim’s number indicators. These include Lost Time Injury Frequency
one priority. Holcim aims to be an employer of choice Rate, LTIFR, and Total Injury Frequency Rate, TIFR, in
that reports with integrity and transparency, and particular, at 1.6 and 4.8 respectively in 2014. In the
shows a genuine commitment to the health and safe- year under review 25 individuals lost their lives while
ty of the people that work for it. This is why the Group working for Holcim, of whom 20 were indirectly
has spent years focusing on its reporting culture, employed through contractors or service providers.
meanwhile building trust throughout the Group, and Seven out of these 25 were involved in road accidents
the figures have started to reflect this change. Since outside of plants. A further 16 individuals not connect-
Holcim introduced reporting of critical incidents, the ed to Holcim lost their lives mainly as a result of traf-
number of reported incidents has increased from fic accidents with vehicles carrying Holcim products.
tens to hundreds per year. Holcim believes it is not The Group is sincerely saddened by each loss of life.
experiencing more incidents today than before; the Although the 2014 safety figures are disappointing,
Group simply ascertains more, and this advancement Holcim takes reassurance in knowing that today, more
than at any other time in its history, it has a good
understanding of what the actual situation is. This
Lost time injury frequency rate represents a great opportunity to make comprehen-
sive analyses of risk exposure and target resources,
6
and this is what Holcim is focusing on now.
5
4
The Group’s programs and initiatives allow it to pro-
3 vide targeted support for cases in which specific and
2 2,0
1,5 1,6 individual improvements are required in Group com-
1,2 1,3
1 panies. The Directives Assessments Program assesses
0 each Group company’s capability and understanding
2010 2011 2012 2013 2014 in relation to hazard identification and risk manage-
1
ment. The Design Safety and Construction Quality
The lost time injury frequency rate (LTIFR) is calculated as:
number of lost time injuries u 1,000,000 : total number of hours Program also allows Holcim to target support based
worked. Data includes all operations.
on the risks associated with major hazards such as
fires, explosions, and geotechnical and structural
S U S T A I N A B L E D E V E L O P M E N T E N V I R O N M E N TA L C O M M I T M E N T A N D S O C I A L R E S P O N S I B I L I T Y 69
integrity, tackling issues at their source during the Holcim – Supplier of sustainability-enhanced solutions
design, construction, and operation of quarries and Aligned with Holcim’s vision “to provide foundations
facilities. for society’s future” in 2014 the Group developed its
revised sustainability strategy, the Holcim Sustainable
As a broader measure, Holcim continues to stress the Development Ambition 2030, with the aim to signifi-
importance of line managers demonstrating visible cantly increase the interest in and uptake of its inno-
leadership to bring about positive behavior changes vative range of sustainability-enhancing solutions.
at all levels of the organization and continue work-
ing hard to strengthen the competence of the Health Holcim aspires to generate one third of its revenue
and Safety function itself. The Group also continued from a portfolio of sustainability-enhanced products
to roll out the Road Safety Improvement Program to and services by 2030.
strengthen performance in areas such as vehicle man-
agement, leadership and commitment, driver man- The sustainability benefits of these solutions are
agement, contractor management, journey manage- proven. The solutions are defined as offering superior
ment, and road and traffic conditions on its own sites. environmental and social performance in the manu-
facturing phase and/or in the use and disposal phases
The annual safety awards initiative continued to fos- of buildings and other infrastructure, exceeding cur-
ter a culture in which safety excellence is recognized rent standards.
and shared for the benefit of everybody. The Group is
in its third cycle of rewarding best practices at region- The Sustainable Development Ambition 2030 has
al and global levels and is seeing these initiatives a number of aspirations and intermediate targets
being replicated elsewhere in the Group. to help Holcim address three focus areas: Climate,
Resources, and Communities.
Everything Holcim does in occupational health and
safety is to move the Group toward being a zero-harm
organization. Holcim believes this is not simply an
aspirational target designed to drive better perfor-
mance but an achievable one, and the Group will not
cease in its endeavors to achieve it.
Climate – Acting to cap the carbon footprint Therefore, by 2030 Holcim aspires to maintain net
across the lifecycle absolute CO2 emissions at 2013 levels throughout
Holcim has a continuing commitment to a wide vari- the entire lifecycle of its products. This will require
ety of measures to mitigate its CO2 emissions, such as that Holcim caps its carbon footprint, regardless of
improving the energy efficiency of its own operations the expected growth in the volume of cement pro-
and substituting fossil fuels for lower-carbon alter- duced. It acknowledges that any increases in emis-
natives. Holcim has committed to reducing its CO2 sions from operations will be offset or compensated
emissions per tonne of cement by 25 percent by 2015, through products, services, and solutions that reduce
in comparison with the reference year of 1990, and is emissions from buildings, infrastructure, and trans-
on track to meet this target. Holcim currently leads portation. By doing so, Holcim adopts a pioneering
the sector with the lowest CO2 emissions per tonne of approach in the industry, becoming the first to not
cement. Details of 2014 emissions will be reported on only monitor and account for CO2 savings beyond its
www.holcim.com/sustainable in mid-2015. own operations but also to set a target on absolute
emissions.
But the global climate challenge requires an altogeth-
er more collaborative and far-reaching response. An important element in this is to support the grow-
ing trend towards transparency and to facilitate
As a responsible company, Holcim’s approach to sus- informed choices by customers and specifiers. Holcim
tainability must reach beyond its own business and uses a range of tools to deliver transparent informa-
encompass its entire value chain. Throughout the tion to customers. Examples are the Product Carbon
building lifecycle, there is great potential for carbon Footprint tool, which enables tracking of emissions
reduction, so instead of focusing on just its own oper- embedded in products, and Environmental Product
ations, Holcim recognizes its responsibility to make all Declarations (EPDs), which provide transparency in
the elements in its value chain more sustainable. several environmental impact categories.
Resources – Quantifiable targets Holcim aspires to have a positive impact on water

for long-term improvements resources in water-scarce areas by 2030. Water is a
Holcim appreciates that its business success depends natural resource used at all Holcim operational sites
on nature and ecosystem services. That is why it has across the world, and Holcim remains conscious of
set very clear targets to be less dependent on primary how precious water is. In partnership with the Inter-
materials and to manage natural resources and eco- national Union for Conservation of Nature (IUCN),
systems in a sustainable way. Holcim has developed and implemented a water man-
agement system for all its business units worldwide.
By 2030 Holcim aspires to use 1 billion tonnes of sec- In 2013 Holcim announced the target to reduce its
ondary resources, replacing approximately 25 percent specific water consumption by 20 percent by 2020,
of the primary materials it requires. measuring from a 2012 baseline.
Holcim will continue to replace more fossil fuels with By 2030 Holcim aspires to demonstrate positive
alternative energy sources and increase its use of change for biodiversity. By 2020 the Group will use a
industrial by-products such as fly ash and slag. Holcim biodiversity reporting system developed jointly with
will also use more construction and demolition waste the IUCN to assess extraction sites against a number
to replace natural resources. These waste solutions of habitat indicators and will report year-on-year
also provide a valuable service for local communities improvements in biodiversity management.
by offering a responsible solution to the ever-increas-
ing problem of waste.
Communities – Creating positive social impact Inclusive business initiatives are intended to comple-
and business returns ment and not to replace traditional CSR programs, as
Holcim recognizes that market-based solutions that not all social needs can be addressed through market-
address social issues will drive both business and soci- based solutions. Strategic social investments remain
etal benefits, creating shared value for all. Holcim’s crucial. They seek to improve people’s quality of life in
2030 aspiration is to improve the quality of life – in a sustainable way by providing seed capital for activi-
particular with regard to livelihoods and shelter – of ties and building capacity among community stake-
100 million people at the base of the wealth pyramid holders. Social investment is considered strategic if it
through inclusive business solutions and strategic focuses on the needs of local communities, is imple-
social investments. mented in close collaboration with stakeholders, and
builds on core business knowledge and assets.
Inclusive business solutions approach social problems
as business opportunities. By applying its core compe- In 2014 Holcim Group companies invested over CHF 30
tencies and expertise, Holcim can improve the living million in community engagement activities directly
conditions of low-income communities while extend- or indirectly benefitting several million people.
ing access to its products, services, and solutions in
ways that create mutual value. Close cooperation with local stakeholders is vital and
builds mutual respect and trust. Holcim engages
To succeed, these initiatives must be profitable, with stakeholders in a number of forums, including
strategic, address social needs, provide measurable community advisory panels, formal dialog sessions,
benefits to the company, and drive product or service open door days, and local partnerships. To this end,
development. Examples include housing and sani- all Holcim Group companies are encouraged to have a
tation solutions for low-income customers, micro- formal community engagement plan in place.
enterprises that market products and services relating
to Holcim’s core business, and supplying Holcim facili- Other sustainability impacts
ties with goods and services. While the Holcim Sustainable Development Ambition
focuses on the topics above, Holcim also manages a
number of other sustainability-related issues as part
of its business. These include:
Emissions reduction
By 2011 Holcim had already achieved its target to
reduce specific emissions of dust and nitrogen oxides
(NOx) by 20 percent by 2012 and 2013 respectively,
compared with 2004 levels. Focus is now placed on
maintaining or even improving the emission levels
achieved thus far.
Emission levels of CO2, NOx, dust, and SO2 will be

reported at www.holcim.com/sustainable mid-2015.
Employee relations Strategic partnerships

Holcim is committed to recruiting, employing, devel- Holcim recognizes that it can achieve far more by
oping, and retaining the best people in its sector. collaborating with others, thus partnerships are an
Holcim strives to be the most attractive employer in important element of its sustainable development
its industry by providing the best possible conditions, strategy. Holcim is a member of the Corporate Sup-
acknowledging that its employees are its greatest port Group of the International Committee of the
asset, and recognizing that their expertise, passion, Red Cross (ICRC), an organization with exceptional
and enthusiasm are the key to Holcim’s performance. credibility in protecting the lives and dignity of vic-
Diversity is valued and encouraged. tims of conflict and other life-threatening situations.
This engagement allows the Group to implement its
Unfortunately, the business environment in some commitment to sustainable development in conflict-
regions led to unavoidable adjustments and reduc- affected regions where both Holcim and the ICRC
tion of capacity. Holcim is aware that the reduction operate.
of employment is a painful process, and thus not only
complies with local applicable laws – especially with Apart from these global partnerships, many Holcim
regard to appropriate involvement of labor councils Group companies engage in partnerships at the local
and unions – but treats its employees with respect level. A list of these partnerships can be found online
and tries to find the best possible solutions in the at www.holcim.com/sustainable.
interest of both the employees and the company.
Listed in leading sustainability indexes
Respecting human rights For the twelfth consecutive year Holcim was con-
Holcim recognizes the importance of respecting firmed as a member of the Dow Jones Sustainability
human rights and supports the UN Global Compact Indexes. Holcim also continues to be a member of the
(UNGC). The principles of the UNGC are reflected in FTSE4Good index series. In 2014 Holcim increased its
Holcim’s Directives on the use of contract labor and score in the Carbon Disclosure Project.
in Holcim’s Supplier Code of Conduct. Furthermore,
Holcim has developed a Business Related Human In 2014 Holcim was rated sector leader in the Tomor-
Rights Management System. This system is based on row’s Value Rating (TVR), conducted by the respected
global risk mapping using independent and respected DNV GL Group. This rating evaluates the sustainability
indices. Related assessments are planned for all performance of 45 major companies across five key
Group companies and have already been conducted in domains: strategy, engagement, governance, innova-
countries with high inherent risk. Details of Holcim’s tion, and value chain.
Human Rights Management System can be found at
www.holcim.com/sustainable.
74 S U S TA I N A B L E D E V E L O PM E N T HUMAN RESOURCES
Human Resources
Investing in people: Reinforcing the foundation on which to build and

grow
Holcim knows that the success of its organization Transfer of employees from the Group regions
depends on the success of its people. With around Number
68,000 employees in 70 countries, the Group’s reach

Africa Middle East Asia Pacific
is global. To benefit from this diversity and spread, 10 26
Holcim continuously aligns its people processes to North America
reinforce the right foundation upon which to build 9
and grow.
Values and behaviors Latin America

55
The values of Strength. Performance. Passion. are
integral to Holcim’s strategy. The Group focuses
on behaviors that set standards against which all
employees are measured. The six behaviors are cus-
Europe
tomer excellence, drive for results, collaboration, 158
integrity, develop yourself and others, and change/

inspirational leadership. Together, the values and
behaviors form an intrinsic part of Holcim’s culture Transfer of employees to the Group regions
and identity. Number
Asia Pacific Africa Middle East

Investing in today and tomorrow 30 50
Good people processes cultivate the right climate

for employees to thrive and contribute to achieving North America
14
organizational objectives. How Holcim attracts and
recruits, manages and rewards performance, develops
and engages talent, and manages its talent pipeline
Europe Latin America
requires a holistic integrated approach: one that sup- 105 59
ports securing the right person with the right skills
and attitude for the right job at the right time.
S U S TA I N A B L E D E V E L O PM E N T HUMAN RESOURCES 75
Holcim believes that diversity and inclusion are busi- Commitment to people
ness imperatives to increase the right talent pool for The relationship between Holcim and its people
sustainable performance. While Holcim has a very is based on active dialog first and foremost with
diverse workforce, particularly in terms of national- employees and also with employee representatives
ity, it recognizes the need to address gender diversity and unions. A key factor in engagement is listening
in leadership positions. Thus, a Diversity Council was to needs and acting on feedback. Numerous engage-
established in 2014, with the aim to create a system ment surveys have been conducted, leading to vari-
and workforce that is open, taking a broader view, and ous company initiatives in response. In 2015 the first
embracing diversity in attitude and perspective. The Group-wide engagement survey will be conducted.
Group believes that this leads to inspiring innovations
and value creation. Career Committees for the top 150 talents and for
functions and regions were established in 2014 to
Given that leaders shape an organization, excellence facilitate collaboration and exchange, with the aim to
in leadership is a must. Through an assessment meth- develop a seamless, cross-functional, cross-regional
odology for leaders, Holcim identifies role and per- talent pipeline. Additionally, a new global concept in
sonal development areas. To foster development and Holcim to expedite learning was launched: The web-
networking opportunities, a total of 294 managers based Holcim Learning Institute comprises Functional
participated in executive education programs in 2014. Academies and elements such as Occupational Health
Recognizing that challenges faced by leaders today & Safety and Legal and Compliance. It also offers vir-
requires a different mindset, a six-month-long Future tual classroom capabilities with an internal training
Leadership Program was designed in partnership with network that is 260 members strong. The institute
leading academic institutions to explore concepts proved a crucial enabler for diffusing know-how and
such as self-awareness, authority, mindful leadership, sharing expertise Group-wide, with a total of 226
resilience, and system dynamics. assignees around the world, including 93 new ones.
76 S U S TA I N A B L E D E V E L O PM E N T HUMAN RESOURCES
1
Including all Group employees by segments 2014 2013 2012 2011 2010
other cementi-
tious materials.
Cement1 44,403 47,179 50,293 51,492 51,133
Aggregates 5,722 5,812 6,379 6,898 6,478
Other construction materials and
services 16,825 17,376 19,421 22,469 22,577
Diverse 634 490 266 108 122
Total Group 67,584 70,857 76,359 80,967 80,310
Group employees by region 2014 2013 2012 2011 2010

Asia Pacific 31,850 34,080 36,523 37,942 38,172
Latin America 10,733 11,181 11,765 12,867 12,710
Europe 15,399 15,868 17,924 19,602 19,690
North America 6,777 6,791 7,136 7,543 6,668
Africa Middle East 1,928 2,128 2,153 2,140 2,213
Service and trading companies 897 809 858 873 857
Total Group 67,584 70,857 76,359 80,967 80,310
Origin of senior managers

From Asia Pacific 14 nationalities 60% of all senior management
From Latin America 14 nationalities 9% of all senior management
From Europe 32 nationalities 22% of all senior management
From North America 2 nationalities 8% of all senior management
From Africa Middle East 11 nationalities 1% of all senior management
Composition of senior managers

Male Female Total Percentage of women
Top management level 306 36 342 11%
Senior management level 1,549 168 1,717 10%
Middle management level 5,571 871 6,442 14%
Total 7,426 1,075 8,501 13%
Personnel expenses in 2014 by function and region

Production and Marketing and
Million CHF distribution sales Administration Total
Asia Pacific 568 94 204 866
Latin America 310 67 91 468
Europe 777 128 219 1,124
North America 626 50 86 762
Africa Middle East 52 10 32 94
Service and trading companies 43 20 161 224
Total Group 2,377 368 793 3,538
3
BUSINESS
REVIEW
Group Region Asia Pacific >> 78
Group Region Latin America >> 82
Group Region Europe >> 86
Group Region North America >> 90
Group Region Africa Middle East >> 94
USA REGION NORTH AMERICA

CHICAGO In North America, Holcim is particularly active in the eastern
and midwestern United States and in Canada. One of the
world's highest-capacity and most modern cement plants is
located in Ste. Genevieve on the Mississippi. The plant can
produce four million tonnes of cement per year.
78 B U S I N E S S R E V I E W G RO U P R EG I O N A SI A PACI FI C
Group
Cement plant
Capacity expansion
Grinding plant/Cement terminal
Capacity expansion
Aggregates
Participation
Cement plant
Capacity expansion
Aggregates
B U S I N E S S R E V I E W G RO U P R EG I O N A SI A PACI FI C 79
Asia Pacific benefits from rebound in India
Growth in key economies of the region to drive construction projects in the Philippines with
Asia Pacific’s economic climate was characterized strong government spending as a main contributor.
by the start of a rebound in the Indian economy and Construction spending in Indonesia was less dynamic
solid growth levels in most other major markets in the as a result of the national elections, but demand for
region. housing remained high. Total construction activity in
Australia declined in 2014 as a result of the cyclical
India’s economic environment was lackluster over downturn, despite residential construction growing
the first months of 2014, but following the federal strongly. New Zealand’s construction sector was in
elections signs of improvement became stronger as good shape with a solid increase in cement consump-
the new government kicked off a number of projects tion.
to stimulate growth. Sri Lanka’s economy remained
in solid shape, and Bangladesh reported significant
growth despite some political uncertainties. The eco-
nomic environment in Vietnam remained challenging
despite solid growth. In 2014, Malaysia again benefit-
ed from public investment while Singapore’s growth
was less dynamic. The Philippine economy grew on
solid levels, driven by the service and manufacturing
industries as well as strong household spending, and
Indonesia also recorded robust growth although lower
than expectations due to the election in 2014. Growth
in Australia moderated due to a sharp decline in Consolidated key figures Asia Pacific 2014 2013 ±% ±% LFL*
resource sector investment and subdued non-mining Production capacity cement
business investment, while in New Zealand economic in million t 96.4 90.3 +6.8
activity was dynamic. Cement and grinding plants 54 51
Aggregates plants 72 84
Demand for building materials increases in most markets Ready-mix concrete plants 290 320
India’s construction markets gradually turned more Sales of cement in million t 71.2 70.3 +1.4 +2.0
positive in the course of 2014. Infrastructure invest- Sales of mineral components
ment remained comparably low but the situation in million t 0.6 0.7 –11.2 +6.3
for residential projects was more positive despite Sales of aggregates in million t 24.8 25.2 –1.5 –1.5
high inflation and interest rates. While Sri Lanka’s Sales of ready-mix concrete
construction market recovered from the challenging in million m3 10.8 10.9 –0.8 –0.6
previous year, Bangladesh continued to be strongly Net sales in million CHF 6,970 7,282 –4.3 +3.8
positive also in 2014. Vietnam continued to face Operating EBITDA in million CHF 1,332 1,473 –9.5 –1.7
Operating EBITDA margin in % 19.1 20.2
oversupply of many building materials, but Malaysia
Operating profit in million CHF 934 1,030 –9.4 –1.7
again benefited from various infrastructure projects.
Operating profit margin in % 13.4 14.1
Singapore’s construction sector suffered from a sharp
Personnel 31,850 34,080 –6.5 –6.5
slowdown. The positive economic climate continued
*
Like-for-like, i.e. factoring out changes in the scope of consolidation and currency
translation effects.
80 B U S I N E S S R E V I E W G RO U P R EG I O N A SI A PACI FI C
Rebounding volumes in India drive Group region’s net sales Cement Australia increased like-for-like cement
Both Indian Group companies of Holcim have from volumes despite lower demand from the resources
the more promising situation in construction markets sector. In 2014 the Group company started produc-
in the country. Ambuja Cements and ACC increased tion at its new Port Kembla grinding station, south of
top line in the year under review and benefited from Sydney. Holcim Australia was impacted by the decline
various commercial initiatives across the country that in resource sector investment as large-scale projects,
opened new markets and increased sales of premium particularly in Western Australia, were completed in
products. Cement deliveries in Sri Lanka and Bang- the course of 2014. Subsequently, aggregates volumes
ladesh increased as well. In the year under review declined. In response to a continuing low growth envi-
Holcim increased its cement grinding capacities in ronment and the decline of resource sector invest-
Meghnaghat, Bangladesh. ment, Holcim Australia adjusted its footprint and
reduced headcount to be more agile and effective.
Cement volumes at Holcim Vietnam decreased. How- Ready-mix concrete shipments increased however.
ever, the Group company, which is mainly active in Holcim New Zealand increased cement volumes in a
the southern part of the country recorded an increase very competitive market and has decided to move to
in bagged cement sales building on a stronger premi- an import strategy by building two new terminals.
um position, but bulk cement and ready-mix concrete Aggregates deliveries were up as well.
volumes declined. Cement shipments in Malaysia
declined following a very good year in 2013, and in Sin- Consolidated cement volumes in the Group region
gapore ready-mix concrete volumes were also down, Asia Pacific were up 1.4 percent to 71.2 million tonnes
reflecting the challenges in the local construction in 2014. In aggregates, volumes declined 1.5 percent
industry overall. to 24.8 million tonnes mainly due to the development
at Holcim Australia. Ready-mix concrete deliveries
Holcim Philippines reported a strong increase in were down slightly by 0.8 percent to 10.8 million cubic
cement volumes as the government continued to meters. Consolidated net sales in Asia Pacific reached
fund infrastructure projects, while the positive busi- CHF 6.97 billion, a decline of 4.3 percent mainly due to
ness environment has emboldened the private sector negative foreign exchange effects.
to push through with expansion plans.
Volume development in Indonesia was positive for

cement and aggregates, while ready-mix concrete
deliveries were flat. In cement, the implementation
of Customer Excellence initiatives and the opening of
new markets contributed to the development which
was particularly strong for bagged cement. The new
kiln line of the Tuban I plant in East Java was commis-
sioned in the fourth quarter of 2014.
B U S I N E S S R E V I E W G RO U P R EG I O N A SI A PACI FI C 81
Operating profit continues to be under pressure from across the segments. While Huaxin’s cement volumes
currency effects remained flat, operating profit was higher than in
Operating profit in the Group region Asia Pacific 2013 due to higher prices and lower costs.
decreased 9.4 percent to CHF 934 million in 2014 with
currency effects having a continuing negative impact Outlook for 2015
coupled with lower performance in Holcim Australia. Holcim’s main cement markets in Asia Pacific are
Like-for-like operating profit in the Group region was expected to benefit from increased demand in 2015.
down 1.7 percent. As India’s main macro-economic indicators show a
solid basis for growth and stable conditions in the
Overall, India recorded a plus in operating profit. mid-term, cement demand is expected to pick up
Ambuja Cements was able to reverse the negative again in 2015. Initiatives by the new Indian govern-
development of 2013 and reported increased operat- ment for infrastructure and housing could further
ing profit. Operating profit at ACC remained impacted boost demand directly and indirectly throughout 2015.
by the challenging situation on some of the Group Cement demand in Indonesia and the Philippines is
company’s markets. Financial performance in Sri expected to continue to increase due to sound macro-
Lanka and Bangladesh was down despite the con- economic fundamentals. The road infrastructure and
tinued strong focus on overall cost efficiences. At residential sector will continue to expand in Australia
Holcim Vietnam operating financial performance was but not enough to mitigate the fall in construction
impacted by an oversupplied market. Malaysia record- activity in the resources sector.
ed operating profit on par with the previous year,
while in Singapore it was down. Holcim Philippines
benefited from higher volumes and favorable price
environment that outweighed the negative effects
of increased costs for power and raw materials. Indo-
nesia’s performance was below that of 2013. Cement
Australia increased like-for-like operating profit on
the back of higher volumes and strict cost control.
Holcim Australia suffered from a significant decline in
operating profit as a result of the lower volumes from
higher-margin mining projects and despite tight cost
management. Holcim New Zealand however recorded
higher operating profit in 2014.
China’s growth was driven by investment supporting

urbanization and privatization. As the market contin-
ued to be characterized by excess capacity, the focus
of Huaxin, Holcim’s local Group company, remained
on differentiation through customer excellence
initiatives, cost leadership, and vertical integration
82 B U S I N E S S R E V I E W G R O U P R E G I O N L AT I N A M E R I C A
Group
Cement plant
Capacity expansion
Aggregates
Participation
B U S I N E S S R E V I E W G R O U P R E G I O N L AT I N A M E R I C A 83
Latin America resists headwinds while Mexico recovers
Mixed economic climate with considerable uncertainties Mostly declines and moderate growth in construction
Latin America faced with challenging development in markets
2014 as economic activity remained in low gear. Lower The construction market in Mexico recovered in the
commodity prices and tightening financial conditions, second half of 2014, supported by the implementa-
as well as supply bottlenecks put pressure on growth tion of the National Infrastructure Investment Plan
in a number of countries. announced in June, but challenges remained in the
housing market. In Central America construction
Over the course of 2014 growth in Mexico rebounded, activity in El Salvador declined due to less infrastruc-
supported by an increase in exports, higher public ture spending, while in Costa Rica the sector has been
spending on infrastructure, and an improved manu- basically flat, and in Nicaragua considerable growth
facturing sector. The Central American countries was recorded. Colombia benefited from several infra-
reported moderate growth. Colombia’s economy structure expansion and housing projects by the gov-
expanded on solid levels thanks to investment in con- ernment, leading to increased demand for building
struction projects, while Ecuador could not maintain materials. Ecuador’s construction industry however
the high growth rates of the previous year. Brazil’s was less dynamic in 2014. The construction sector in
economy largely moved sideways in 2014 as invest- Brazil grew only slightly due to lower private and pub-
ment was low and interest rates and inflation high. lic investment and delays in infrastructure projects,
Growth in Chile was low due to uncertainty of the reflecting the overall challenging economic climate.
impact of government reforms, and Argentina’s econ- Chile’s and Argentina’s construction sectors shrank in
omy suffered severely from the debt crisis. 2014, however in Argentina the declines were not as
pronounced as in other sectors.
Consolidated key figures Latin

America 2014 2013 ±% ±% LFL*
Production capacity cement
in million t 35.3 35.3 +0.1
Sales of cement in million t 24.6 25.0 –1.5 –1.5**
Sales of aggregates in million t 7.5 10.2 –26.4 –26.4
Sales of ready-mix concrete
in million m3 6.4 8.0 –20.0 –20.0
Net sales in million CHF 3,012 3,349 –10.0 +0.6
Operating EBITDA in million CHF 861 938 –8.2 –0.8
Operating profit in million CHF 663 722 –8.2 –1.1
Personnel 10,733 11,181 –4.0 –3.9
*
**
The percentage change like-for-like adjusted for internal trading volumes eliminated in
"Corporate/Eliminations" amounts to -1.0.
84 B U S I N E S S R E V I E W G R O U P R E G I O N L AT I N A M E R I C A
Mexico recovers while Brazil remains challenging but also in Sao Paulo and Espirito Santo. The develop-
Holcim Mexico sold more cement in 2014, driven by ment in Minas Gerais however was less favorable.
the overall more favorable economic situation that Following the strategic rightsizing of the ready-mix
has led to increased cement demand but also thanks concrete business last year, volumes decreased in this
to a variety of commercial measures. The Group com- segment.
pany continued to export clinker to Holcim Ecuador in
2014. Volumes in aggregates and ready-mix concrete In Chile, Cemento Polpaico suffered from the chal-
declined significantly, impacted by the closure of sev- lenging economic situation in 2014 and reported
eral plants in 2013 based on the strategy to focus on volume declines in all three segments. As mining pro-
the most profitable markets and customers. jects came to an end in the year under review, ready-
mix concrete deliveries were negatively affected,
Following a year with solid volumes fueled by major following a peak in 2013. Subsequently, intra-company
road infrastructure projects, El Salvador delivered less cement sales also declined as a result of this develop-
cement in 2014. Volumes in all three segments for ment.
Holcim Costa Rica were down, reflecting the slower
growth of the national economy and the impact As construction is considered a safe way to preserve
of lower exports. Holcim Nicaragua continued to the value of money in the context of the Argentinian
increase cement volumes in 2014, despite additional recession, declines in cement consumption were less
capacities of competitors having come on stream in pronounced than in other industries. However, Holcim
the year under review. Argentina sold less cement in 2014 following the very
good performance of the year before. Aggregates and
Cement volumes at Holcim Colombia improved slightly ready-mix concrete volumes were down significantly
as the Group company’s cement plant operated close as a result of the lack of infrastructure investment.
to capacity and competition increased. With a stronger
focus on margins ready-mix concrete deliveries were up. Consolidated cement volumes in the Group region
Latin America were down by 1.5 percent to 24.6 mil-
After Holcim Ecuador reported solid cement volume lion tonnes in 2014. In aggregates deliveries declined
growth over the last years, with 2013 being a record by 26.4 percent to 7.5 million tonnes and in ready-mix
year, the Group company was affected by the coun- concrete shipments contracted by 20.0 percent to
try’s declining cement consumption in 2014. Public 6.4 million cubic meters, both mainly as a result of
investment was subdued as a result of liquidity the strategic rightsizing-efforts in the Group region
restraints by the government. Subsequently, deliveries implemented in 2013. Net sales in the Group region
in all three segments declined. Latin America were down 10.0 percent to CHF 3 billion.
Brazil’s economic situation remained difficult follow-

ing the Soccer World Cup and 2014 federal elections.
Holcim Brazil, with its presence in the southeast of
the country, could however increase cement sales
supported by strong demand mainly in Rio de Janeiro
B U S I N E S S R E V I E W G R O U P R E G I O N L AT I N A M E R I C A 85
Operating profit declines Outlook for 2015

Operating profit in the Group region Latin America Export of goods and services as well as internal con-
was down 8.2 percent to CHF 663 million as declines sumption will continue as growth drivers for Latin
were reported in a number of Group companies. Like- America, while the mining sector is expected to slow
for-like operating profit was down 1.1 percent. How- down. Infrastructure spending for example in Mexico
ever, Holcim was able to increase its operating profit and Colombia, is likely to increase, and Holcim’s
margin in the Group region. well-balanced portfolio is expected to provide stable
volume growth. Brazil is however likely to remain a
More favorable development in Mexico led to increas- challenging market. Ongoing cost reduction result-
es in operating profit for the Group company. While ing from foot print optimization in prior years should
operating profit was down in Costa Rica, Nicaragua improve margins in the Group region.
reported solid improvements. Holcim El Salvador,
Holcim Colombia, and Holcim Ecuador all reported
moderate decreases in their financial performance.
Brazil suffered from lower prices and increased oper-
ating costs that lead to a significant drop in operat-
ing profit. Despite several initiatives to reduce fixed
costs, Cemento Polpaico reported lower financial
performance mainly because of the market situation.
In Argentina, higher price levels were not able to com-
pensate for the volume decrease and cost inflation
leading to a lower financial performance.
86 B U S I N E S S R E V I E W GROUP REGION EUROPE
Group
Cement plant
Aggregates
Participation
Aggregates
86
B U S I N E S S R E V I E W GROUP REGION EUROPE 87
Europe remains at low level despite good start into the year
European recovery considerably weaker than expected decline in construction permits, but the Italian market
The recovery of the European economy slowed down deteriorated further and more intensely than other
in the course of 2014 as major markets reported lower sectors in the country. In Spain, the very challeng-
than expected growth rates and political uncertain- ing situation of the past years began to ease slightly
ties took their toll. Development in the first half of the as construction activity increased in the year under
year was stronger though. review. Eastern Europe was still waiting for a major
rebound in demand for building materials. Azerbai-
The economy in the United Kingdom was one of jan’s construction sector was dynamically fueled by
the most robust in the Group region, showing solid government spending. Despite the macroeconomic
growth despite some political uncertainty caused by challenges, Russia’s construction sector grew moder-
the Scottish referendum for independence in the third ately.
quarter. Belgium and the Netherlands were impacted
by their governments’ austerity measures and budget Volumes remain under pressure
cuts. France’s economy continued to largely move Aggregate Industries UK benefited from high demand
sideways in the year under review, and economic for building materials in all its businesses. Aggregates
development in Germany cooled down in the course volumes were up significantly and the Group compa-
of the year as consumer and business confidence ny’s strong position in the London market and ongo-
developed less favorably. Switzerland’s economy lost ing growth in commercial and residential real estate
some of its momentum also as a result of uncertainty
caused by political developments, while in Italy there
were no signs of a recovery. In Spain, economic activ- Consolidated key figures Europe 2014 2013 ±% ±% LFL*
ity rebounded slightly in 2014 while the situation in Production capacity cement
Eastern Europe remained mixed with some countries in million t 46.8 47.7 –2.0
not able to exit recession. Steady economic growth Cement and grinding plants 34 35
in Azerbaijan continued in 2014, but Russia felt Aggregates plants 188 203
the effects of the political instability caused by the Ready-mix concrete plants 373 414
Ukraine crisis. Asphalt plants 51 49

Sales of cement in million t 26.4 26.7 –1.0 –1.0
Sales of mineral components
Construction activity rebounds in selected markets
in million t 2.3 2.1 +10.2 +10.2
In the United Kingdom construction spending
increased on solid levels in 2014 mainly driven by resi-
dential and commercial projects. Construction activity
in million m3 11.9 12.3 –3.0 –2.5
in Belgium and the Netherlands remained subdued in
Sales of asphalt in million t 5.6 4.9 +14.5 +15.3
the year under review, while in France the slowdown
continued, driven by a drop in new construction and
Operating EBITDA in million CHF 991 946 +4.8 +6.7
a lack of government spending. In comparison with
other countries in the region, Germany’s construc-
Operating profit in million CHF 510 436 +16.8 +16.1
tion sector remained solid. Switzerland’s construc-
tion market continued to be in sound shape despite a
Personnel 15,399 15,868 –3.0 –2.6
*
88 B U S I N E S S R E V I E W GROUP REGION EUROPE
construction led to a significant increase in ready-mix Eastern Europe also benefited from a strong start
concrete volumes. Asphalt deliveries were up as well, into the fiscal year, but most markets developed more
driven largely by road maintenance and repair works. slowly since then. In cement, all Group companies
except Serbia, Croatia, and Hungary reported better
Holcim Belgium, which also serves the Netherlands, volumes. Holcim Czech Republic increased aggregate
reported slightly higher cement volumes and sig- volumes markedly, thanks to a major highway pro-
nificantly lower deliveries of aggregates and ready- ject. In ready-mix concrete, Holcim Romania, with the
mix concrete as a result of the low level of building Group’s most important market in the region, recorded
activity. Following a good start into the year, Holcim significant increases thanks to larger projects in the
France suffered from cement volume declines in the Bucharest area.
course of 2014, leading to lower deliveries for the full
year. Aggregates and ready-mix concrete volumes Holcim Azerbaijan was faced with increased competi-
were down as well as a result of the negative market tive pressure by two new local cement producers and
environment. more imports from Iran. Subsequently, the Group
company was unable to maintain the high volumes
Holcim Germany, like several other Group companies of the previous year and sold less cement. In Russia,
in the region, benefited from the mild winter, but Holcim grew well above the market average thanks to
growth of cement and aggregates volumes flattened infrastructure investments.
out in the second half of 2014 as a result of the deteri-
orating economic climate. Fewer infrastructure projects In 2014, consolidated cement volumes in the Group
led to lower cement volumes at Holcim South Germany. region were down 1.0 percent to 26.4 million tonnes
Aggregates and ready-mix concrete deliveries were down mainly as a result of Azerbaijan and Italy. Aggregates
as well. shipments reached 73.1 million tonnes, a decline of
1.4 percent. Ready-mix concrete volumes were 3.0 per-
Holcim Switzerland was impacted by increased pres- cent lower to 11.9 million cubic meters but asphalt vol-
sure through cement imports and stronger domestic umes increased 14.5 percent to 5.6 million tonnes. Net
competition which led to lower volumes in this seg- sales in Europe decreased 1.0 percent to CHF 5.55 bil-
ment. In aggregates and ready-mix concrete volumes lion.
were down as well. In Italy, volumes declined in all three
segments as a result of the further worsening market Trade volumes grow by around 5 percent
development. In 2014 Holcim Trading posted a trading volume of
20.1 million tonnes (2013: 18.5 million tonnes). The
Holcim Spain recorded increases in cement volumes growth can be attributed mostly to the larger share
that were mainly supported by exports, and domestic of non-Group customers. The larger customers are,
volumes also started to develop favorably. Follow- as in the previous year, in the Philippines and the
ing the footprint adjustment in the second quarter United Arab Emirates. Holcim Trading has proven an
of 2014, aggregates and ready-mix concrete volumes instrumental part of the Group, enabling countries to
decreased markedly. postpone investments in clinker production facilities
by utilizing available capacity of other countries. The
B U S I N E S S R E V I E W GROUP REGION EUROPE 89
global trading patterns remained overall rather stable nicated. Instead, Cemex purchased Holcim’s Gador
with approximately 40 percent sold to customers in cement plant and Yeles grinding station, while Holcim
Asia Pacific. has kept its remaining operations. This change of
parameters reflects the change in the strategic land-
Financial performance improves significantly scape following the announcement of the proposed
Operating profit in the Group region Europe increased merger of Holcim with Lafarge. Hence Holcim and
markedly by 16.8 percent to CHF 510 million thanks to Cemex will remain competitors in Spain and in the
disciplined cost management and restructurings. Like- Czech Republic. As a result of the transactions, Cemex
for-like operating profit growth was 16.1 percent. The paid Holcim EUR 45 million in cash. Holcim expects
restructuring of certain of Holcim’s operations in the sustainable additional operating EBITDA of at least
Group region had an effect of CHF 38 million. EUR 10 million on a yearly basis.
Aggregate Industries UK increased operating profit Outlook for 2015

significantly on the back of strong demand across all its Holcim expects the overall European construction
businesses and thanks to ongoing cost discipline. The market to stabilize at low levels. At one end of the
financial performance in Belgium remained impacted spectrum, the United Kingdom should witness a con-
by sluggish demand, and France also recorded declines. tinuation of the recovery of key sectors such as private
Holcim Germany increased operating profit, driven by housing and commercial real estate as well as of large
strong volumes and higher prices, and Holcim South infrastructure projects. At the other end of the spec-
Germany also posted better results. In Switzerland, trum, Russia and Azerbaijan are expected to feel the
operating profit was up, as tight cost management was negative impact of lower public and private invest-
able to overcompensate the negative market development in buildings and infrastructure. Performance of
ment. Italy recorded improved financial performance, the region is expected to improve mainly as a result
and Spain was impacted by restructuring costs that of the numerous restructuring, footprint-adjustment,
led to lower operating profit. In the Eastern European and efficiency-improvement initiatives across the
Group companies, operating profit increased substan- Group region.
tially with the exception of Serbia. Holcim Azerbaijan
was impacted by lower volumes, and consequently
financial performance was lower, while in Russia oper-
ating profit was up markedly.
Portfolio optimization continued

In January 2015, Holcim and Cemex successfully closed
their series of transactions in Europe. Holcim acquired
Cemex’s operations in western Germany and the
Netherlands while Cemex took over Holcim Czech
Republic with all its subsidiaries in the country.
In Spain the two companies decided not to form a
joint organization as initially planned and commu-
90 B U S I N E S S R E V I E W GROUP REGION NORTH AMERICA
Group
Cement plant
Aggregates
B U S I N E S S R E V I E W GROUP REGION NORTH AMERICA 91
North America: Good performance in the United States

drives Group region’s results
Solid economic rebound Broad-based recovery of the construction sector in the

Following a slow-paced recovery in 2013, the United United States
States’ economy rebounded strongly in the course Following a slow start into the year 2014, influenced
of the year under review. A decline in private debt, by the harsh winter and delayed construction in many
improved corporate liquidity, and improved unem- markets, building activity in the United States was
ployment data contributed to the positive develop- more dynamic and broad-based. While residential pro-
ment. With the resolution of the debt-ceiling crisis jects remained a driver - albeit a less intense one - for
uncertainty was considerably lower than in the previ- solid demand in building materials, the commercial
ous year. sector supported the recovery more strongly than in
2013. Public investment however continued to be on a
Canada’s economy recorded stronger growth than in low level, reflecting tighter government spending.
2013, fueled by the commercial sector rather than resi-
dential construction as in previous years. Supported
by the favorable development in the United States,
Canada also benefited from increased exports, which
led to higher commercial investment. Public invest-
ment also increased.
Consolidated key figures North

America 2014 2013 ±% ±% LFL*
in million t 21.9 22.0 –0.1
Asphalt plants 33 42
Sales of cement in million t 13.0 11.7 +11.4 +11.4
Sales of mineral components
in million t 1.4 1.3 +6.5 +6.5
Sales of aggregates in million t 45.7 42.8 +6.8 +7.7
in million m3 7.2 7.5 –4.1 +2.2
Net sales in million CHF 3,336 3,171 +5.2 +10.7
Operating EBITDA in million CHF 600 494 +21.5 +26.0
Personnel 6,777 6,791 –0.2 +1.4
*
92 B U S I N E S S R E V I E W GROUP REGION NORTH AMERICA
2014 was another challenging year for Canada’s con- In a highly competitive market environment, Holcim
struction industry. The housing market remained Canada sold more cement thanks to higher demand
under pressure, and housing starts were below levels in Western Canada which was partially offset by
of 2013. However, the non-residential sector showed lower volumes in the Quebec and Atlantic regions.
solid momentum, mainly driven by investment in Shipments of aggregates increased markedly, mainly
healthcare and education, natural resources projects, attributable to higher crushed stone demand in
transit system improvements, and power generation Ontario. Holcim Canada also sold more ready-mix con-
projects. crete and asphalt.
Positive development in the United States drives volume Consolidated cement volumes in the Group region
growth North America were up 11.4 percent to 13.0 million
At Holcim US, cement volumes increased markedly tonnes year-on-year mainly thanks to Holcim US.
over the course of the year, fueled by the overall Aggregates shipments reached 45.7 million tonnes, an
recovery in cement consumption and some market increase of 6.8 percent, as both the United States and
share gain. The Group company also benefited from a Canada reported higher volumes. Ready-mix concrete
new supply contract in Illinois. The Northern Central volumes decreased 4.1 percent to 7.2 million cubic
region recorded particularly high demand, and July meters and asphalt volumes increased 9.9 percent to
was a very strong month for the Group company, with 4.5 million tonnes. Net sales in North America were up
the highest monthly sales since 2008. 5.2 percent to CHF 3.34 billion.
Aggregate Industries US also benefited from the Considerably improved financial performance
dynamic US economy and reported growth in aggre- Operating profit in North America grew markedly by
gates volumes across most of its regions. Increases 58.3 percent to CHF 314 million based on the good per-
were strongest in the West Central and the Twin Cit- formance of both US Group companies. Like-for-like
ies areas. Ready-mix concrete volumes were impacted operating profit growth reached 65.1 percent.
by the sale of certain operations. Twin Cities and Latti-
more reported higher deliveries, which were tempered Holcim US reported significantly improved operat-
by reductions in other regions. Robust increases in ing profit, reflecting higher volumes and successful
asphalt volumes were driven by increased construc- implementation of price increases. The measures
tion activity in major regions, assisted by several large taken during the downturn now place Holcim US in a
paving projects. favorable position to benefit from the recovery in the
United States. Aggregate Industries US also increased
operating profit significantly thanks to both better
prices across all segments and lines and higher sales
volumes in aggregates and asphalt. Canada however
had to record slightly lower operating profit than
2013.
B U S I N E S S R E V I E W GROUP REGION NORTH AMERICA 93
Outlook for 2015

In the United States, the housing recovery is expected
to continue and many state and local governments
will be in a better financial position than in the past.
Both commercial real estate investment and public
construction are expected to make positive contribu-
tions in 2015. At Holcim US, performance is expected
to continue to increase in 2015, driven by higher sales
volumes combined with price increases and opera-
tional efficiencies. Aggregate Industries US should
see further price growth across all product lines. The
Canadian economy is expected to suffer from the
muted prospects of resource-based provincial econo-
mies, but development in Ontario and Quebec should
be more favorable. Cement demand is expected to
reflect this situation with higher volumes in Ontario,
while pressure remains in other provinces.
94 B U S I N E SS R E V I E W GROUP REGION AFRICA MIDDLE EAST
Group
Cement plant
Aggregates
Participation
Cement plant
B U S I N E SS R E V I E W GROUP REGION AFRICA MIDDLE EAST 95
Africa Middle East with subdued growth
Political challenges impact economic development lost on ready-mix concrete volumes. In the Indian
Economic development in the Group region Africa Ocean region, Holcim sold more aggregates and
Middle East was highly heterogeneous and political ready-mix concrete, mainly thanks to the Group’s
tensions and uncertainty impacted a number of Holcim operations in La Réunion, where Holcim is involved
markets in 2014. Growth was rather modest in coun- in a major road-building project. Cement volumes at
tries such as Morocco and Lebanon, whereas the Ivory Holcim’s grinding operations in West Africa and the
Coast and Madagascar were among the faster growing Gulf region were roughly on par with last year. Devel-
economies. opment in the Ivory Coast remained lively as demand
for building materials continued to be high.
Higher cement volumes
Holcim Morocco reported higher cement volumes. Consolidated cement volumes in Africa Middle East
While domestic demand was lower the Group com- increased 5.4 percent to 8.3 million tonnes. Aggre-
pany benefited from clinker exports to the Ivory Coast. gates shipments were down 8.7 percent to 2 million
Less dynamic activity in residential construction, tonnes while ready-mix concrete volumes reached
which represents the majority of the local market, 0.7 million cubic meters, a decline of 15.0 percent. Net
was the main driver behind the domestic develop- sales stood at CHF 861 million, 2.6 percent lower year-
ment. Aggregates and ready-mix concrete volumes on-year.
decreased. Holcim Lebanon held cement sales, but
Consolidated key figures Africa

Middle East 2014 2013 ±% ±% LFL*
in million t 11.0 11.0 –0.5
in million m3 0.7 0.8 –15.0 –15.0
Net sales in million CHF 861 884 –2.6 +0.8
Operating EBITDA in million CHF 276 283 –2.4 +1.2
Personnel 1,928 2,128 –9.4 –9.4
*
96 B U S I N E SS R E V I E W GROUP REGION AFRICA MIDDLE EAST
Financial performance increases thanks to Morocco

In Africa Middle East operating profit increased slightly
by 1.6 percent to CHF 220 million in the year under
review. Like-for-like operating profit growth was
5.8 percent. While Holcim Lebanon reported lower
financial performance most other Group companies in
the region increased operating profit. Morocco was the
biggest contributor to the overall increase as the Group
company was able to mitigate lower domestic volumes
with better prices.
Outlook for 2015

The development in Africa Middle East is expected to
remain heterogeneous with Morocco as the region’s
most important market, being confronted with an
ongoing challenging situation. Progress in Lebanon
will to some extent depend on the situation in Syria,
while West Africa and Indian Ocean are expected to
see solid growth in building materials demand.
4
C O R P O R AT E
GOVERNANCE
Corporate Governance >> 98
SWITZERLAND REGION EUROPE

ZURICH The Group's roots are in the Group region Europe. The com-
pany began expanding beyond Switzerland in 1925 and has
established a presence on all continents. This region includes
the Group companies in Russia and Azerbaijan.
98 CO R P O R AT E G OV E R N A N CE
Corporate governance
Holcim applies high standards to corporate governance.

The goal is to assure the long-term value and success of
the company in the interests of various stakeholder groups:
customers, shareholders, employees, creditors, suppliers
and the communities where Holcim operates.
Acting responsibly pensation Committee, and the Governance & Strategy

The ultimate goal of effective corporate governance Committee as well as the Organizational Rules.
is long-term value creation and strengthening of the
Group’s reputation. This includes continuous improve- On November 20, 2013, the Swiss Federal Council
ment to decision-making processes and management approved the Federal Council Ordinance Against Ex-
systems through legal, organizational, and ethical cessive Compensation (OaEC). The OaEC implements
directives and terms of reference, as well as measures key elements of the so-called “Minder Initiative” ap-
to enhance transparency. Compliance with internal proved by Swiss citizens on March 3, 2013, which was
and external directives, early recognition of business intended to strengthen shareholder rights and impose
risks, social responsibility for stakeholder groups and board and executive compensation related require-
open communication on all relevant issues are among ments on Swiss public companies. The OaEC imple-
the principles of Holcim. Since 2004, the Code of Busi- ments various requirements including, among others,
ness Conduct, binding for the entire Group, has been a binding (rather than advisory) annual shareholder
part of the mission statement. vote on each of total board compensation as well as
total executive committee compensation. It prohib-
Holcim aims to achieve a balanced relationship be- its severance payments, advance compensation and
tween management and control by keeping the func- payments related to the acquisition or transfer of en-
tions of Chairman of the Board of Directors and CEO terprises or parts thereof by the respective company
separate. All directors are independent according to or enterprises directly or indirectly controlled by said
the definition of the Swiss Code of Best Practice for company. Further, it implements criminal sanctions
Corporate Governance. Since the introduction of in certain cases of intentional noncompliance if the
a uniform registered share in 2003, the principle of offender acted against his or her “better knowledge”.
“one share, one vote” applies. The OaEC also states that the Chairman and the
members of the Board of Directors and the Nomina-
The information published in this chapter conforms to tion & Compensation Committee members be directly
the Corporate Governance Directive of the SIX Swiss elected by shareholders annually. The measures re-
Exchange (SIX) and the disclosure rules of the Swiss quired for implementation by 2014 have been imple-
Code of Obligations. In the interest of clarity, refer- mented by Holcim starting from the annual general
ence is made to other parts of the Annual Report or, meeting in 2014. The shareholders’ votes on compen-
for example, to the Group’s website (www.holcim. sation required by the OaEC must for the first time be
com). Pages 102 to 104 of this report describe the du- obtained at the annual meeting in 2015. The OaEC will
ties of the Audit Committee, the Nomination & Com- be applicable until the Swiss Parliament passes a new
law on the subject matter.
CO R P O R AT E G OV E R N A N CE 99
Topic
Except as otherwise indicated, this Annual Report re- Business review
flects the legal situation as of December 31, 2014, and in the individual Group regions P. 78-96
mentions only certain of the modifications to be made Segment information P. 176–179
under the Federal Council Ordinance against Exces- Principal companies P. 219–221
sive Compensation (OaEC) which is in force and effect Information about Holcim Ltd
since January 1, 2014, subject to transitional periods. and listed Group companies P. 65, 220
Important shareholders P. 232
Group structure and shareholders
The holding company Holcim Ltd operates under Capital structure
the laws of Switzerland for an indefinite period. Holcim has one uniform type of registered share in
Its registered office is in Rapperswil-Jona (Canton order to comply with international capital market
of St. Gallen, Switzerland). It has direct and indirect requirements in terms of an open, transparent and
interests in all companies listed on pages 219 to 221 modern capital structure and to enhance attractive-
of this Annual Report. ness, particularly for institutional investors.
The Group is organized by geographical regions. Share capital

The management structure as per December 31, 2014, The share capital is divided into 327,086,376 regis-
and changes which occurred in 2014, are described tered shares of CHF 2 nominal value each. As at
in this chapter. The organizational chart as per Janu- December 31, 2014, the nominal, fully paid-in share
ary 14, 2015 is shown on pages 56 and 57. capital of Holcim Ltd amounted to CHF 654,172,752.
Holcim has no mutual cross-holdings with any other Conditional share capital
company. There are neither shareholders’ agreements The share capital may be raised by a nominal amount
nor other agreements regarding voting or the holding of CHF 2,844,700 through the issuance of a maximum
of Holcim shares. of 1,422,350 fully paid-in registered shares, each with a
par value of CHF 2 (as per December 31, 2014). The con-
More detailed information on the business review, ditional capital may be used for exercising convertible
Group structure and shareholders can be found on the and/or option rights relating to bonds or similar debt
following pages of the Annual Report: instruments of the company or one of its Group com-
panies. The subscription rights of the shareholders
shall be excluded. The current owners of conversion
rights and/or warrants shall be entitled to subscribe
for the new shares. The acquisition of shares through
the exercise of conversion rights and/or warrants
and each subsequent transfer of the shares shall be
subject to the restrictions set out in the Articles of
Incorporation. As per December 31, 2014, no bonds or
similar debt instruments of the company or one of its
Group companies were outstanding that would give
rise to conversion rights related to the conditional
capital; therefore, in the year under review, no conver-
sion rights have been exercised.
Further information on conversion rights and/or Dr Rolf Soiron, Dr Andreas von Planta and Dr Erich
warrants and applicable conditions may be found Hunziker retired from the Board of Directors at the
in the Articles of Incorporation of Holcim Ltd at 2014 Annual General Meeting. The Board of Directors
www.holcim.com/corporate_governance. has expressed sincere gratitude for their services.
Authorized share capital/Certificates of participation In 2014, the shareholders elected Mr Jürg Oleas, Swiss
As per December 31, 2014, neither authorized national, born in 1957, who holds an MSc in mechani-
share capital nor certificates of participation were cal engineering from the Swiss Federal Institute
outstanding. of Technology (ETH) in Zurich, Switzerland. He is CEO
of GEA Group Aktiengesellschaft, a Düsseldorf-based
Additional information can be found as follows: mechanical engineering company listed on Germany’s
MDAX stock index. GEA Group is one of the largest
Topic system suppliers for the food processing industry and
Articles of Incorporation Holcim Ltd a wide range of other process industries. Jürg Oleas
www.holcim.com/corporate_governance has been a member of the GEA Group Executive Board
Code of Conduct since joining the company in May 2001. Initially re-
www.holcim.com/corporate_governance sponsible for the Group’s chemical activities, he was
Changes in equity Holcim Ltd P. 226 appointed CEO of GEA Group on November 1, 2004.
Information for the year 2012 is included Before joining the GEA Group, he spent nearly 20
in the Annual Report 2013, P. 256 years with ABB and the Alstom Group, where he held
www.holcim.com/equity several management positions.
Detailed information on conditional capital
www.holcim.com/corporate_governance In 2014, the shareholders also elected Prof Dr Wolf-
Articles of Incorporation, Art. 3 bis
gang Reitzle as Chairman of the Board of Directors
Key data per share P. 62–66, 213, 232 and re-elected eight Members of the Board of Direc-
Rights pertaining to the shares tors. Further, the shareholders elected the Members
www.holcim.com/corporate_governance of the Nomination & Compensation Committee.
Articles of Incorporation, Art. 6, 9, 10 Please refer to the biographical data of all these per-
Regulations on transferability sons on pages 112 to 114.
of shares and nominee registration P. 109
www.holcim.com/corporate_governance The shareholders also elected the auditors and the
Articles of Incorporation, Art. 4, 5 independent proxy.
Warrants/Options P. 211–212
New members of the Board of Directors are intro-
Board of Directors duced in detail to the company’s areas of business.
The Board of Directors consists of 9 members, all of
whom are independent according to the definition The Board of Directors meets as often as business
of the Swiss Code of Best Practice for Corporate Gov- requires, but at least four times a year. In 2014, six
ernance. According to Art. 15 of the Articles of Incorpo- regular meetings were held. Two additional meetings
ration, all Directors are shareholders of the company. focused on strategy topics. The Board of Directors
held five regular meetings with all members present
Please see pages 112 to 114 for the biographical informa- and one meeting with one member excused. As a rule,
tion of the Board members as per December 31, 2014. the members of the Executive Committee attended
Other major Swiss and foreign mandates of the Board of Directors outside the Holcim Group as at December 31, 2014
Board of Directors Mandate Position
Wolfgang Reitzle Continental AG, Hannover (Germany)* Chairman of the Board
Axel Springer SE, Berlin (Germany)* Member of the Supervisory Board
Hawesko Holding AG, Hamburg (Germany)* Member of the Supervisory Board
Medical Park AG, Amerang (Germany) Chairman of the Supervisory Board
Beat Hess Nestlé S.A., Vevey (Switzerland)* Member of the Board, Member
of the Chairman’s and Corporate
Governance Committee, Chairman
of the Compensation Committee
Sonova Holding AG, Stäfa (Switzerland)* Vice Chairman of the Board,
Member of the Nomination and
Compensation Committee
Alexander Gut Adecco S.A., Chéserex* (Switzerland) Member of the Board &
Chairman of the Audit Committee
Gut Corporate Finance AG, Zurich (Switzerland) Managing Partner
Adrian Loader Oracle Coalfields PLC, London* (United Kingdom) Chairman of the Board
GardaWorld, Montreal (Canada) Member of the International
Advisory Board
Alderon Iron Ore, Montreal (Canada)* Member of the Board
Sherrit International Corporation, Toronto (Canada)* Member of the Board
Jürg Oleas GEA Group Aktiengesellschaft, Düsseldorf (Germany)* Chief Executive Officer
RUAG Holding AG, Bern (Switzerland)* Member of the Board
Thomas Schmidheiny Schweizerische Cement-Industrie-Aktiengesellschaft, Chairman of the Board
Rapperswil-Jona (Switzerland)**
Spectrum Value Management Ltd., Rapperswil-Jona (Switzerland)** Chairman of the Board
Abraaj Holdings, Dubai (United Arab Emirates) Member of the Board
Hanne B. Sørensen Damco International B.V., The Hague (Netherlands) Chief Executive Officer
Dieter Spälti Rieter Holding AG, Winterthur (Switzerland)* Member of the Board
Schweizerische Cement-Industrie-Aktiengesellschaft, Member of the Board
Rapperswil-Jona (Switzerland)**
Spectrum Value Management Ltd., Rapperswil-Jona (Switzerland)** Member of the Board
Anne Wade FB Heron Foundation, New York, (USA) Member of the Board of Trustees
Big Society Capital, London (United Kingdom) Member of the Board of Directors
* Listed company
** Related mandate of the same Board Member (company of the same group or mandate related to another mandate - e.g. association membership)
those parts of the regular meetings of the Board of The following expert committees exist:
Directors which dealt with operational issues of the
Group. The average duration of each regular meeting Audit Committee (since 2002)
was five hours. The Audit Committee assists and advises the Board
of Directors in conducting its supervisory duties with
respect to the internal control systems. It examines
Composition of the Board of Directors the reporting for the attention of the Board of Direc-
Wolfgang Reitzle Chairman1 tors and evaluates the Group’s external and internal
Rolf Soiron Chairman 2
audit procedures, reviews the risk management
Beat Hess Deputy Chairman systems of the Group, and assesses financing issues.
Erich Hunziker Deputy Chairman2
Alexander Gut Member Composition of the Audit Committee
Adrian Loader Member Alexander Gut Chairman
Andreas von Planta Member2 Beat Hess Member
Thomas Schmidheiny Member Andreas von Planta Member1
Hanne Birgitte Breinbjerg Sørensen Member Dieter Spälti Member
Dieter Spälti Member 1
Until April 29, 2014.
Anne Wade Member
Jürg Oleas Member1
1 As of April 29, 2014. All members are independent according to the defini-
2 Until April 29, 2014. tion of the Swiss Code of Best Practice for Corporate
Governance, in order to ensure the necessary degree
Elections and terms of office of objectivity required for an Audit Committee.
In line with the Federal Council Ordinance against
Excessive Compensation (OaEC), as of the 2014 Annual
General Meeting, the terms of office of all members of
the Board of Directors shall be one year expiring after
completion of the following Annual General Meeting.
In addition, the Chairman of the Board of Directors, all
Members of the Board of Directors, and all Members
of the Nomination & Compensation Committee are
elected for a one-year term by the Annual General
Meeting. The Chairman of the Board of Directors,
the Members of the Board of Directors as well as the
Members of the Nomination & Compensation Com-
mittee may be proposed for re-election by the Board
of Directors upon motion by the Nomination & Com-
pensation Committee. The Nomination & Compensa-
tion Committee bases its motion on a review of the
overall performance of each candidate.
In 2014, four regular meetings of the Audit Commit- In 2014, the Nomination & Compensation Committee
tee were held. All regular meetings were held with all held three regular meetings and one additional meet-
members of the committee present. Three meetings ing. All of the regular meetings were attended by all
were also attended by the auditors. At all four meet- members of the committee. The meetings were also
ings, the Head of Group Internal Audit and the Chief attended by the CEO as a guest, insofar as he was not
Legal & Compliance Officer were present for certain himself affected by the items on the agenda. The av-
agenda topics. Furthermore, the Chairman of the erage duration of each meeting was three hours.
Board of Directors, the CEO, and the CFO attended the
meetings of the Audit Committee as guests. The aver- The Charter of the Nomination & Compensation
age duration of each meeting was 4.75 hours. Committee may be found at www.holcim.com/cor-
porate_governance. More details on the activities
In 2014, the committee reviewed in particular the of the Nomination & Compensation Committee, in
financial reporting of the Group, the releases of the particular with regard to the process of determination
quarterly results and the findings of the external au- of compensation, can be found in the remuneration
ditors, took note of the status of the ICS (internal con- report, starting on page 118.
trol system), discussed the findings of the Group In-
ternal Audit, dealt with compliance and internal direc- Governance & Strategy Committee (since 2013)
tives, and evaluated financing issues. The committee The Governance & Strategy Committee supports the
has also evaluated the performance of the external Board of Directors in all strategy related matters and
auditors. The Audit Committee’s Charter is available in all governance related matters insofar as these
at www.holcim.com/corporate_governance. governance related matters do not fall in the fields of
tasks and responsibilities of either the Audit Commit-
Nomination & Compensation Committee (since 2002) tee or the Nomination & Compensation Committee.
The Nomination & Compensation Committee supports It monitors developments with regard to strategic
the Board of Directors in planning and preparing succes- and governance related matters and briefs the Board
sion at the Board of Directors and senior management of Directors accordingly. The committee deals with
level. It monitors developments with regard to compen- any matters within the Board of Director’s authority,
sation for the Board of Directors and senior manage- which are urgent and may arise between scheduled
ment, and briefs the Board of Directors accordingly. The ordinary Board of Directors meetings, including the
committee decides on the individual compensation paid authorization to take preliminary action on behalf of
to the Executive Committee, and on the CEO’s targets the Board, followed by adequate information of the
and performance assessment, and informs the Board of Board of Directors.
Directors as a whole of the decisions taken.
Composition
Composition of the Governance & Strategy Committee
of the Nomination & Compensation Committee Wolfgang Reitzle Chairman1,
Adrian Loader Chairman1 Rolf Soiron Chairman2
Erich Hunziker Chairman2 Beat Hess Member
Wolfgang Reitzle Member Erich Hunziker Member2
Thomas Schmidheiny Member Dieter Spälti Member
Hanne B. Sørensen Member 3
Anne Wade Member3
1 1
Chairman as of April 29, 2014. Ex officio as Chairman of the Board of Directors.
2 2
Until April 29, 2014. Until April 29, 2014.
3 As of April 29, 2014. 3
As of April 29, 2014.
In 2014, the Governance & Strategy Committee held The Board of Directors also has the power to establish
three regular and ten additional meetings. All of the expert committees and, if required, ad-hoc committees
regular meetings were attended by all members of for special tasks. The Board of Directors can delegate
the committee. The meetings were also attended by special tasks or tasks related to specific functions to a
the CEO as a guest, insofar as he was not himself af- Deputy Chairman on a temporary or permanent basis.
fected by the items on the agenda. The average dura-
tion of each regular meeting was 2.0 hours. As part of its non-transferable statutory responsibili-
ties, the Board of Directors defines the corporate
The Charter of the Governance & Strategy strategy, approves the consolidated Group budget,
Committee may be found at the quarterly consolidated financial statements (with
www.holcim.com/corporate_governance. the exception of the report of the first quarter of the
year, which is to be adopted and released by the Audit
Areas of responsibility Committee), and the Annual Report for submission to
The division of responsibilities between the Board of the Annual General Meeting.
Directors and the Executive Committee is set out in
detail in the company’s Organizational Rules. The The Executive Committee is responsible for opera-
Organizational Rules may be found at www.holcim. tional management, preparing a large part of the
com/corporate_governance. business of the Board of Directors – including corpo-
rate strategy proposals – and executing the latter’s
Organizational Rules resolutions. The Executive Committee issues direc-
The Organizational Rules entered into force on tives and recommendations with Group-wide sig-
May 24, 2002, and according to the Organizational nificance in its own authority and is also responsible
Rules shall be reviewed at least every two years and for electing and dismissing Area Managers, Function
amended as required. They were last reviewed in 2014. Heads and CEOs of Group companies, as well as for
the nomination of the members of the Board of Direc-
The Organizational Rules were issued by the Board of tors and supervisory bodies of the Group companies.
Directors of Holcim Ltd in accordance with the terms
of Art. 716b of the Swiss Code of Obligations and Art. Within the framework of mid term plan approval,
19 of the company’s Articles of Incorporation. They the Board of Directors defines limits for investments
stipulate the organizational structure of the Board of and financing. Within these limits, the Executive
Directors and the Executive Committee and govern Committee decides on financing transactions and on
the tasks and powers conferred on the company’s one-off investments and divestments for amounts up
executive bodies. They regulate the convocation, ex- to CHF 200 million. Amounts beyond this are subject
ecution, and number of meetings to be held by the to approval by the Board of Directors. The Board of
Board of Directors and the Executive Committee as Directors is regularly informed about important trans-
well as the tasks and competences of the company’s actions within the authority of the Executive Commit-
bodies. The Organizational Rules set out the tasks and tee.
responsibilities of the Chairman of the Board of Direc-
tors and the CEO. In the event that the Chairman of The members of the Executive Committee may dele-
the Board of Directors is not independent, the Organi- gate their tasks in relation to their geographical areas
zational Rules provide for the election of an Independ- of responsibility to Area Managers.
ent Lead Director.
The CEO assesses the performance of the members of
the Executive Committee and, after advice and assess-
ment by the Nomination & Compensation Commit- and submits the Annual Report to the general meet-
tee, determines their respective objectives. ing for approval.
The Executive Committee oversees Business Risk Ma- With regard to Group strategy development, a stra-
nagement following appraisal by the Audit Commit- tegy plan, a financial plan, and an annual budget are
tee. The Board of Directors is informed annually about submitted to the Board of Directors.
the risk situation.
2. Business Risk Management
In case of a direct conflict of interest, the Organiza- Holcim benefits from many years of experience with
tional Rules require each member of the corporate risk management that was implemented in 1999.
body concerned to stand aside voluntarily prior to any The risk assessment process is established across the
discussion of the matter in question. Members of the Group covering the consolidated Group companies
corporate bodies are required to treat all information and their relevant business segments.
and documentation which they may obtain or view in
the context of their activities on these bodies as con- Group Risk Management (GRM) analyzes the Group’s
fidential, and not to make such information available overall risk exposure and supports the strategic
to third parties. decision-making process. Therefore, the RA process is
closely linked with the Group’s strategic management
All individuals vested with the powers to represent process. The full risk spectrum, from market, opera-
the company have only joint signatory power at two. tions, finance and legal, to external risk factors of the
business environment, is reviewed, including compli-
Information and control instruments ance and reputational risks. The risk assessment is not
of the Board of Directors limited to a hazard analysis, but also identifies meas-
The Board of Directors determines in which manner ures and possible opportunities.
it is to be informed about the course of business. Any
member of the Board of Directors may demand in- The Group’s risk profile is established by top-down,
formation on all issues relating to the Group and the bottom-up and functional risk assessments which are
company. All Directors may request information from combined to a Group 360° risk analysis. GRM involves
the CEO through the Chairman of the Board of Direc- the Board of Directors, the Executive Committee, cor-
tors. At meetings of the Board, any attending member porate function heads and the Group companies in
of the Executive Committee has a duty to provide in- the risk assessment that is aligned with the Group’s
formation. All members of the Board of Directors have management cycle. The Executive Committee reports
a right to inspect books and files to the extent neces- regularly to the Board of Directors on important risk
sary for the performance of their tasks. findings.
1. Financial reporting The risk assessment process consists of several steps.

The Board of Directors is informed on a monthly basis First, risks as well as opportunities are assessed and
about the current course of business, adopts the quar- prioritized according to significance and likelihood.
terly reports (with the exception of the report of the Top risks are analyzed more deeply regarding their
first quarter of the year, which is to be adopted and causes and a risk treatment is defined. The consoli-
released by the Audit Committee) and releases them dated Group risk profile is established and Group risk
for publication. The Board of Directors discusses initiatives are set up and monitored on their progress
the Annual Report, takes note of the auditors’ reports,
during the year. Information gathered in the process The tasks of the Executive Committee as Senior Man-
is stored in a protected, centralized database. agement are divided into different areas of responsi-
bility in terms of country, division, and function, each
Responsibilities concerning risks are clearly defined at of these areas being ultimately supervised and man-
Group company and corporate level. The underlying aged by a member of the Executive Committee.
principle is that risk management is a line manage-
ment responsibility with GRM forming part of the Further to the changes effective January 1, 2014 re-
second line of defense and Internal Audit forming ported in the Annual Report 2013 on pages 121-122, the
the third line of defense. In 2014, the corporate func- following changes within Senior Management
tion GRM within Corporate Finance & Treasury was as defined during the year under review have oc-
responsible for the risk management process and curred:
timely reporting by the Executive Committee to the
Board of Directors. Effective June 1, 2014, Onne van der Weijde, Area Man-
ager for India until April 25, 2014, and member of Hol-
3. Internal Audit cim Senior Management, left Holcim. Holcim thanked
Internal Audit assures the existence and pertinence Onne van der Weijde for his contributions to the suc-
of process controls and integrity of information. For cess of the Group, especially in India, and wished him
more details, see page 54. Internal Audit reports to the all the best for his future endeavors.
Chairman of the Audit Committee and periodically
informs the Audit Committee. The members of the Effective September 30, 2014, Urs Bleisch, previously
Board of Directors have access to Internal Audit at all Corporate Functional Manager and member of Sen-
times. Each year, the Audit Committee defines the ior Management of Holcim Ltd, has been nominated
audit focal areas to be addressed by Internal Audit, and member of the Holcim Executive Committee. He
the Head of Internal Audit periodically updates the keeps his responsibilities for Holcim Technology Ltd,
Audit Committee on the activities of Internal Audit. Holcim Group Services Ltd, and the project manage-
ment office of the Holcim Leadership Journey.
Executive Committee and other senior management
Members of the Executive Committee (including the Effective October 1, 2014, Alain Bourguignon, Area
CEO) are appointed by the Board of Directors and Manager in charge of Canada, UK, and USA, and mem-
responsible for the management of the Group. The ber of Senior Management of Holcim Ltd, was sec-
members of the Executive Committee may be assisted onded to the joint Divestment Committee that was
by Area Managers in their area of responsibility. Area established by Holcim and Lafarge in the context of
Managers are appointed by the Executive Committee. their planned merger.
Until the December 31, 2014, the CEO, the members Effective October 1, 2014, Roland Köhler, member of
of the Executive Committee, the Area Managers, and the Holcim Executive Committee previously in charge
the Corporate Functional Managers were referred to as of Continental Europe, also took over responsibility for
Senior Management. With effect as of January 1, 2015 the UK. The enlarged region is named ‘Europe’.
the Corporate Functional Managers are no longer dis-
tinguished from and are considered Function Heads. Also effective October 1, 2014, Andreas Leu, member
Also with effect as of January 1, 2015 and as reflected of the Holcim Executive Committee in charge of Latin
in this report, the CEO, the members of the Executive America, in addition assumed responsibility for USA
Committee are referred to as Senior Management. and Canada. The enlarged region is named ‘Americas’.
Effective December 31, 2014, Jacques Bourgon, Head of Area Management

OH&S for the Group, Senior Advisor to the CEO, and The individual members of the Executive Committee
member of Senior Management of Holcim Ltd, has are assisted by Area Managers.
decided to pursue other challenges outside the Group.
Holcim thanked Jacques Bourgon for the valuable con- Composition of the Area Management
tributions he has made to the success of the Group in Horia Adrian Eastern and
various roles during his 24 years with the company. Southeastern Europe,
including CIS/Caspian
Effective January 1, 2015, Javier de Benito, Area Man- region
ager for Africa Middle East and member of Senior Daniel Bach South East Asia
Management of Holcim Ltd, has decided to leave (except India)
Holcim, to take up a new challenge outside the Group. Javier de Benito1 Africa Middle East
Holcim thanked Javier de Benito for his valuable con- including the Group’s
tributions to the success of the Group over the years. positions in West Africa,
Arabian Gulf and South
Effective January 1, 2015, 2014, Dominique Drouet, CEO and East Africa
of Holcim Morocco, was appointed Area Manager for Dominique Drouet2 Africa Middle East
Africa Middle East. He assumed this responsibility in including the Group’s
addition to his current role. positions in West Africa,
Arabian Gulf and South
Executive Committee and East Africa
Alain Bourguignon 3
During the year under review, the Executive Commit- North America / UK
tee of Holcim Ltd comprised six respectively seven Urs Fankhauser Western Europe,
members. None of the members of the Executive including Spain but
Committee has important functions outside the Hol- excluding the UK
cim Group or any other significant commitments of Onne van der Weijde4 India
interest. Kaspar E.A. Wenger Central Europe
(Switzerland, Southern
Composition of the Executive Committee Germany, Italy)
Bernard Fontana CEO 1 Until December 31, 2014
2
Thomas Aebischer CFO Since January 1, 2015
3 Until October 1, 2014
Urs Bleisch Member1 4 Until April 25, 2014
Roland Köhler Member

Andreas Leu Member
Bernard Terver Member
Ian Thackwray Member
1 Since September 30, 2014.
Please refer to pages 115 and 116 for biographical infor-

mation on the members of the Executive Committee.
Regional and functional responsibilities are shown in
the organizational chart on pages 56 and 57.
Corporate Functional Managers Shareholders’ participation

Until December 31, 2014 Corporate Functional Man- Voting rights and representation restrictions
agers were defined as a separate type of Function All holders of registered shares who are registered as
Heads and part of Senior Management of Holcim Ltd. shareholders with voting rights in the share register
As other Function Heads they assist the Executive at the closing date for the share registry (approxi-
Committee in specific functions and dimensions and mately one week prior to the general meeting. The
report to the Group CEO and members of the Execu- closing date will be communicated with the invitation
tive Committee. With effect as of January 1, 2015 the to the general assembly) are entitled to participate in,
Corporate Functional Managers are no longer distin- and vote at, general meetings. Shares held by trusts
guished from and are considered Function Heads. and shares for which no declaration has been made
that the holder requesting registration is holding
Composition of the Corporate Functional Management the shares in his own name and for his own account
Urs Bleisch 1 CEO Holcim Group Services are entered in the share register as having no voting
Ltd and Holcim Technology rights. Shareholders not participating in person in
Ltd and PMO for the the general meeting may be represented by another
Holcim Leadership Journey shareholder or by the independent voting proxy. In
Jacques Bourgon2 Advisor to CEO line with the requirements of the OaEC, an electronic
Xavier Dedullen Chief Legal & Compliance voting option is provided for as of the general meet-
Officer and Group General ing of shareholders 2015. Voting rights are not subject
Counsel to any restrictions. Each share carries one vote.
Aidan Lynam 3
Technical support for South
Asia and continued oversight Statutory quorums
of Holcim activities in The general meeting of shareholders constitutes
Bangladesh and Sri Lanka a quorum, regardless of the number of shares rep-
1
As of September 30, 2014 appointed Member of the resented or shareholders present; resolutions are
Executive Committee. passed by an absolute majority of the votes allocated
2 Until December 31, 2014.
3 Since February 6, 2014. to the shares represented, unless Art. 704 para. 1 of
the Swiss Code of Obligations or the Merger Act pro-
Management agreements vide otherwise. In such cases, resolutions may only
Holcim has no management agreements in place with be passed with the respective qualified majority of
companies or private individuals outside the Group. the votes represented.
Compensation, shareholdings and loans According to Art. 10 para. 2 of the Articles of Incor-
Details of Board and management compensation poration and in addition to Art. 704 para. 1 of the
are contained in the remuneration report (page 118) Swiss Code of Obligations, the approval of at least
and in the consolidated financial statements two-thirds of the votes represented and the absolute
(page 217, note 40). majority of the par value of shares represented shall
be required for resolutions of the general meeting
of shareholders with respect to the removal of the
restrictions set forth in Art. 5 of the Articles of Incor-
poration (entries in the share register), the removal of
the mandatory bid rule (Art. 22 para. 3 of the Stock
Exchange Act) and the removal or amendment of date will be communicated in the invitation to the
para. 2 of Art. 10 of the Articles of Incorporation. general meeting). Shareholders’ participation and
rights of protection are furthermore governed by the
The chair of the meeting may also have votes and Swiss Code of Obligations.
elections conducted electronically. Electronic votes
and elections are deemed equivalent to secret votes This information comprises excerpts from the Articles
and elections. of Incorporation of Holcim Ltd. The full version of the
Articles of Incorporation in force as at the date of the
Convocation of the general meeting and agenda rules publication of this Annual Report can be accessed
The ordinary general meeting of shareholders takes at www.holcim.com/corporate_governance. For the
place each year, at the latest six months following the amendments to the Articles of Incorporation that
conclusion of the financial year. It is convened by the will be proposed to the 2015 Annual General Meeting,
Board of Directors, whereby invitations are published please consult the report to the Shareholders (avail-
at least twenty days prior to the meeting and in which able at www.holcim.com/AGM2015).
details are given of the agenda and items submitted.
Shareholders representing shares with a par value
of at least one million Swiss francs may request the
addition of a particular item for discussion and resolu-
tion. A corresponding application must be submitted
in writing to the Board of Directors at least forty days
prior to the annual general meeting. Such application
should indicate the items to be submitted. The invita-
tions as well as the minutes of the general meetings
shall be published on www.holcim.com/AGM2015.
Entries in the share register

The company maintains a share register for registered
shares in which the names and addresses of owners
and beneficiaries are entered. According to the applicable
rules and regulations only those included in the share
register are deemed shareholders or beneficial owners
of the registered shares of the company. Upon request,
purchasers of registered shares shall be included in
the share register as shareholders with voting rights
if they expressly declare that they have acquired the
shares in their own name and for their own account.
Exceptions to this rule apply for nominees who have
signed a nominee agreement with the company re-
garding this position and are subject to a recognized
banking or financial markets supervisory authority.
The share register is closed approximately one week

prior to the date of the general meeting (the exact
Changes of control and defense measures Auditors

The Articles of Incorporation contain no waiver of the As part of their auditing activity, the auditors inform
duty to make a public offer under the terms of Art. 32 the Audit Committee and the Executive Committee
and 52 of the Stock Exchange Act (“opting out”). The regularly about their findings and about suggestions
result is that a shareholder who directly, indirectly for improvement. Taking into account the reporting
or in concert with third parties acquires shares in the and assessments by the Group companies, the Audit
company and, together with the shares he already Committee evaluates the performance of the auditors
possesses, thereby exceeds the 331⁄3 percent threshold and their remuneration in line with market condi-
of voting rights in the company must make an offer tions. The Audit Committee approves the audit focus
for all listed shares of the company. area, provides recommendations to the auditors and
makes suggestions for improvement. In 2014, the au-
There are no clauses relating to changes of control. ditors participated in three regular meetings of the
Audit Committee to discuss individual agenda items.
Ernst & Young Ltd, Zurich, were appointed in 2002 as

auditors to Holcim Ltd. Since 2011, Willy Hofstetter is
responsible for managing the audit mandate, sup-
ported by Elisa Alfieri. The rotation of the lead auditor
will be carried out in accordance with Art. 730a of the
Swiss Code of Obligations. The auditors are elected for
a one-year term by the Annual General Meeting.
The fees shown below were charged for professional

services rendered to the Group by Ernst & Young
in 2014 and 2013:
Million CHF 2014 2013

Audit services 1
11.4 10.7
Audit-related services2 0.8 0.7
Tax services 0.3 0.6
Other services3 0.3 0.6
Total 12.8 12.5
1
This amount includes the fees for the individual audits of Group companies carried out by Ernst & Young as well as their fees for
auditing the Group financial statements.
2
Audit-related services comprise, among other things, amounts for due diligences, comfort letters, accounting advice, information
systems reviews and reviews on internal controls.
3
Other services include, among other things, amounts for accounting, actuarial and legal advisory services.
Information policy The commitment to sustainability is described

Holcim Ltd reports to shareholders, the capital mar- on pages 68 to 73 of this Annual Report. Current
ket, employees and the public at large in a transpar- information relating to sustainable development is
ent and timely manner concerning its corporate per- available at www.holcim.com/sustainable. In 2015,
formance, including achievement of its sustainability Holcim Ltd will publish its eighth sustainability report.
targets. An open dialog is nurtured with the most A full sustainability report is now published every
important stakeholders, based on mutual respect and year.
trust. This promotes knowledge of the company and
understanding of objectives, strategy and business The financial reporting calendar is shown on pages
activities of the company. 66 and 242 of this Annual Report.
As a listed company, Holcim Ltd is under an obligation Should there be any specific queries regarding
to disclose facts that may materially affect the share Holcim, please contact:
price (ad-hoc disclosure, Art. 53 and 54 of the SIX
listing rules). Holcim Ltd is subject to the SIX rules on Corporate Communications, Markus Jaggi
the disclosure of management transactions made Phone +41 58 858 87 10, Fax +41 58 858 87 19
by the members of the Board of Directors and senior [email protected]
management. These can be accessed on the SIX web-
site (www.six-exchange-regulation.com/regulation/ Investor Relations, Michel Gerber
directives/being_public_en.html). Phone +41 58 858 87 87, Fax +41 58 858 80 09
[email protected]
The most important information tools are the annual
and quarterly reports, the website (www.holcim.com),
media releases, press conferences, meetings for
financial analysts and investors as well as the Annual
General Meeting.
Board of Directors1
Wolfgang Reitzle, German national, born 1949, Chairman of the Board and of the Governance
& Strategy Committee since April 29, 2014, Member of the Nomination & Compensation
Committee. He studied engineering and economics at the Technical University of Munich
and holds a Degree and a PhD in Mechanical Engineering. From 1976 to 1999 he worked for
the car manufacturer BMW, where in 1987 he was appointed regular member of the Execu-
tive Board, responsible for research and development. In 1999, he took over as CEO of the
Premier Automotive Group and Vice President of the US car manufacturer Ford. In 2002, he joined the Executive
Committee of Linde, a world-leading gases and engineering company, and was CEO from 2003 to 2014. Wolf-
gang Reitzle is also Chairman of the Supervisory Board of Continental AG, Hannover, and Member of the Super-
visory Board (as of June 1, 2014 Chairman of the Supervisory Board) of Medical Park AG, Amerang, Germany and
Member of the Supervisory Board of Springer SE, Berlin, Germany. He was elected to the Board of Directors of
Holcim Ltd in 2012. He is also a member of the Supervisory Board of Hawesko AG, elected in 2014.
Beat Hess, Swiss national, born in 1949, Deputy Chairman of the Board of Directors, Member
of the Nomination & Compensation Committee until April 17, 2013, Member of the Audit
Committee since April 17, 2013 and Member of the Governance & Strategy Committee since
January 1, 2013. He holds a doctorate in law and is admitted to the bar in Switzerland. From
1977 to 2003, he was initially Legal Counsel and subsequently General Counsel for the ABB
Group. From 2004 until the end of 2010, he was Legal Director and Member of the Executive
Committee of the Royal Dutch Shell Group, London and The Hague. He is also a Member of the Board of Directors
and Member of the Chairman’s and Corporate Governance Committee, and the Chairman of the Compensation
Committee of Nestle S.A., Vevey, and Vice-Chairman and Member of the Nomination and Compensation Com-
mittee of the Board of Directors of Sonova Holding AG, Stafa. He was elected to the Board of Directors of Holcim
Ltd in 2010.
Alexander Gut, British and Swiss national, born in 1963, Member of the Board of Directors,
Chairman of the Audit Committee since April 17, 2013. He holds a doctorate degree in Busi-
ness Administration (Dr. oec. publ.) from the University of Zurich, and is a Swiss Certified Ac-
countant. From 1991 to 2001, he was with KPMG in Zurich and London and from 2001 to 2003
he was with Ernst & Young in Zurich and was promoted to Partner in 2002. From 2003 to
2007, he was a Partner with KPMG in Zurich, and was promoted to the Executive Committee
of KPMG Switzerland in 2005. Alexander Gut is the Founder and Managing Partner of Gut Corporate Finance AG,
an independent corporate finance advisory firm in Zurich. He is a Member of the Board of Directors and Chair-
man of the Audit Committee of Adecco S.A., Cheserex, Switzerland. He was elected to the Board of Directors of
Holcim Ltd in 2011.
1
Status as of December 31, 2014. For further information on major Swiss and foreign mandates of the Board of Directors outside the
Holcim Group, see page 101.
Adrian Loader, British national, born in 1948, Member of the Board of Directors, Chairman of
the Nomination & Compensation Committee since April 29, 2014. He holds an Honours De-
gree in History from Cambridge University and is a Fellow of the Chartered Institute of Per-
sonnel and Development. He began his professional career at Bowater in 1969, and joined
Shell the following year. Until 1998, he held various management positions in Latin America,
Asia, Europe and at corporate level. In 1998, he was appointed President of Shell Europe Oil
Products and became Director for Strategic Planning, Sustainable Development and External Affairs in 2004.
From 2005, he was Director of the Strategy and Business Development Directorate of Royal Dutch Shell and be-
came President and CEO of Shell Canada in 2007, retiring from Shell at the end of the year. In January 2008, he
joined the Board of Directors of Toronto-based Candax Energy Inc. and was Chairman until June 2010. He then
served as Chairman of Compton Petroleum, Calgary, until August 2012. He is currently Chairman of the Board of
Directors of Oracle Coalfields PLC, London, and a Member of the Board of Sherritt International Corporation, To-
ronto, and a member of the Board of Alderon Iron Ore, Montreal. He further serves as a member of the Interna-
tional Advisory Board of Garda World, Montreal. He was elected to the Board of Directors of Holcim Ltd in 2006.
Jürg Oleas, Swiss national, born in 1957, holds an MSc in mechanical engineering from the
Swiss Federal Institute of Technology (ETH) in Zurich, Switzerland. He is CEO of GEA Group
Aktiengesellschaft, a Düsseldorf-based mechanical engineering company listed on Germa-
ny’s MDAX stock index. GEA Group is one of the largest system suppliers for the food pro-
cessing industry and a wide range of other process industries. Jürg Oleas has been a member
of the GEA Group Executive Board since joining the company in May 2001. Initially responsi-
ble for the Group’s chemical activities, he was appointed CEO of GEA Group on November 1, 2004. Before joining
the GEA Group, he spent nearly 20 years with ABB and the Alstom Group, where he held several management
positions. He is a member of the Board of RUAG Holding AG, Bern (Switzerland). He was elected to the Board of
Directors of Holcim Ltd in 2014.
Thomas Schmidheiny, Swiss national, born in 1945, Member of the Board of Directors, Member
of the Nomination & Compensation Committee. He studied mechanical engineering at the
ETH Zurich and complemented his studies with an MBA from the IMD Lausanne (1972). In
1999, he was awarded an honorary doctorate for his services in the field of sustainable de-
velopment from Tufts University, Massachusetts. He began his career in 1970 as Technical
Director with Cementos Apasco and was appointed to the Executive Committee of Holcim in
1976, where he held the office of Chairman from 1978 until 2001. He was elected to the Board of Directors of
Holcim Ltd in 1978 and was Chairman of the Board from 1984 until 2003.
Hanne Birgitte Breinbjerg Sørensen, Danish national, born 1965, Member of the Board of Di-
rectors, member of the Nomination & Compensation Committee since April 29, 2014. Until
the end of the year 2013 she was the CEO of Maersk Tankers, Copenhagen and as of January
1, 2014 she is the CEO of Damco, another company of the A.P. Møller-Maersk Group. Hanne
Birgitte Breinbjerg Sørensen holds an MSc in Business Economy from the University of
Aarhus. She was elected to the Board of Directors of Holcim Ltd in 2013.
Dieter Spälti, Swiss national, born in 1961, Member of the Board of Directors, Member of the
Audit Committee, Member of the Governance & Strategy Committee since January 1, 2013.
He studied law at the University of Zurich, obtaining a doctorate in 1989. He began his pro-
fessional career as a credit officer with Bank of New York in New York, before taking up an
appointment as CFO of Tyrolit (Swarovski Group), based in Innsbruck and Zurich, in 1991.
From 1993 until 2001, he was with McKinsey & Company, ultimately as a partner, and was
involved in numerous projects with industrial, financial and technology firms in Europe, the USA and Southeast
Asia. In October 2002, he joined Rapperswil-Jona-based Spectrum Value Management Ltd. as a partner, the firm
which administers the industrial and private investments of the family of Thomas Schmidheiny. Since 2006, he
has been CEO of Spectrum Value Management Ltd. He was elected to the Board of Directors of Holcim Ltd in
2003.
Anne Wade, US national, born 1972, Member of the Board of Directors, member of the Gov-
ernance and Strategy Committee since April 29, 2014. From 1995 to 2012, she was Senior
Vice President and Director of Capital International, based in London. Anne Wade is currently
a Member of the Board of Trustees of the FB Heron Foundation in New York. She graduated
with a BA from Harvard University and holds a Master of Science from the London School of
Economics. She was elected to the Board of Directors of Holcim Ltd in 2013.
Executive Committee
Bernard Fontana, French national, born in 1961. Bernard Fontana holds a Degree in Engineer-
ing from the Ecole Polytechnique and the Ecole Nationale Supérieure des Techniques Avan-
cées in Paris. His career began with Groupe SNPE in France. In 1998, he was appointed Head
of US Operations, and from 2001 to 2004 was a Member of the Executive Committee in
charge of Chemicals and of Industrial Explosives activities. Shortly after joining ArcelorMittal
in 2004, he was given responsibility for HR, IT and business development at Flat Carbon. From
2006 to 2007, he was a Member of the Executive Committee of ArcelorMittal with responsibility for the Auto-
motive Worldwide Business Unit. In his capacity as Group Management Committee member, he was subse-
quently responsible for HR and the global alliance with Nippon Steel. From 2010 until 2011 Bernard Fontana was
CEO of Aperam, a Luxembourg-domiciled listed corporate group that was spun off from ArcelorMittal in the fall
of 2010. Since February 1, 2012, he has been CEO of Holcim Ltd.
Thomas Aebischer, Swiss national, born in 1961. Thomas Aebischer is a Swiss Certified Ac-
countant and alumnus of the Advanced Management Program of the Harvard Business
School. He started his career with the tax authorities of the Canton of Berne. From 1988 to
1996, Thomas Aebischer worked with PricewaterhouseCoopers in Hong Kong and Zurich. In
1996, he joined Holcim Group Support Ltd, and from 1998 to 2002 acted as Head of Corpo-
rate Controlling. From 2002 to 2003, he was CFO of Holcim Apasco in Mexico and thereafter
CFO of Holcim US. He joined the Executive Committee at the beginning of 2011, and, effective April 1, 2011, took
over as CFO. Since September 1, 2012 he has held additional responsibility for Procurement, IT, the Merger & Ac-
quisitions and the HTS Accounting & Administration function. Effective January 1, 2014, the corporate functions
Investor Relations as well as Risk Management report to Thomas Aebischer.
Urs Bleisch, Swiss National, born in 1960. He holds a Master’s in Business and Economics from
the University of Basel. He joined Holcim in 1994 as Head IT of Holcim Switzerland. From
2000 onwards, Urs Bleisch assumed Group-wide responsibility for Information Technology
and was instrumental in the development and implementation of the global IT strategy of
the Holcim Group. Since 2011, he has managed the Information and Knowledge Management
function at Holcim Group Support Ltd. As of September 1, 2012 and as CEO of Holcim Group
Services Ltd and of Holcim Technology Ltd, Urs Bleisch leads the global functions Customer Excellence (Market-
ing & Commercial), Aggregates & Construction Materials, Logistics, Cement Manufacturing, CAPEX Projects,
Sustainable Development, Alternative Fuels and Resources, Innovation (including Knowledge Management) and
the Program Management Office (PMO) for the Holcim Leadership Journey. On September 1, 2012, Urs Bleisch
was appointed Corporate Functional Manager of Holcim Ltd and he reports directly to CEO Bernard Fontana. He
was appointed Member of the Executive Committee effective September 30. 2014. He keeps his current respon-
sibilities for Holcim Technology Ltd, Holcim Group Services Ltd, and the project management office of the Hol-
cim Leadership Journey.
Roland Köhler, Swiss national, born in 1953. Roland Köhler, a graduate in business adminis-
tration from the University of Zurich, joined building materials group Hunziker, Switzerland,
in 1988 as Head of Finance and Administration and transferred to Holcim Group Support Ltd
as a management consultant in 1994. From 1995 to 1998, he was Head of Corporate Control-
ling and, from 1999 to end 2001, Head of Business Risk Management. He has headed Corpo-
rate Strategy & Risk Management since 2002, and in 2005 became Corporate Functional
Manager. On March 15 2010, he was appointed Member of the Executive Committee and CEO of Holcim Group
Support Ltd. Since September 1, 2012, Roland Köhler has been responsible for the Group region Europe, excluding
the UK. Effective October 1, 2014, Roland Köhler also took over responsibility for the UK. The enlarged region is
named ‘Europe’.
Andreas Leu, Swiss national, born in 1967, studied business administration at the University
of St. Gallen and holds an MBA from the Johnson Graduate School at Cornell University.
After working for the International Committee of the Red Cross (ICRC), he joined Holcim
Group Support Ltd in 1999 as a consultant. In 2002, he was appointed General Manager of
Holcim Centroamérica, before assuming the position of CEO of Holcim Ecuador in 2003. Dur-
ing 2006 and 2007, he also held the position of CEO of Holcim Venezuela. On August 1, 2008,
Andreas Leu was appointed Area Manager of Holcim Ltd, with responsibility for Colombia, Ecuador, Argentina,
Chile and Brazil. As of January 1, 2011, Andreas Leu was appointed as Member of the Executive Committee. He is
responsible for Latin America. Effective October 1, 2014, Andreas Leu in addition assumed responsibility for USA
and Canada. The enlarged region is named ‘Americas.’
Bernard Terver, French national, born in 1952, concluded his studies at the Ecole Polytech-
nique in Paris in 1976. After beginning his career in the steel industry, in 1977 he moved to
cement producer CEDEST, which was taken over by Holcim France in 1994. In 1999, Bernard
Terver became CEO of Holcim Colombia and in 2003 he was appointed Area Manager for the
Andes nations, Central America and the Caribbean. Since October 2008, he has been CEO of
Holcim US and, effective November 2010, CEO of Aggregate Industries US. On April 1, 2010,
Bernard Terver was appointed Area Manager with responsibility for Holcim US and Aggregate Industries US. As
of September 1, 2012, Bernard Terver was appointed Member of the Executive Committee. As of January 1, 2014,
Bernard Terver is responsible for Africa Middle East as well as South Asia, i.e. India, Sri Lanka and Bangladesh.
Ian Thackwray, British national, born in 1958. Ian Thackwray holds an MA (Hons) in Chemistry
from Oxford University and is also a chartered accountant. After his studies, he joined Price-
waterhouse and handled major corporate accounts in Europe. In 1985, he started a career
with Dow Corning Corporation, serving in various management roles in Europe, North Amer-
ica and particularly in Asia. From 2004 to 2006, he served as Dow Corning’s Asian/ Pacific
President based out of Shanghai. Between 2006 and 2010, he was CEO of Holcim Philippines.
Since the beginning of 2010, he has been a Member of the Executive Committee. As of January 1, 2014, his area of
responsibility spans the Region EAPac & Trading. EAPac (East Asia Pacific) includes Southeast Asia, East Asia (pri-
marily China) and Oceania.
5
R E M U N E R AT I O N
REPORT
Remuneration Report >> 118
MEXICO R E G I O N L ATI N A M E R I CA
MEXICO CITY From Mexico in the north to Argentina and Chile in the
south, Holcim is active throughout Latin America. Holcim
supplies infrastructure projects in the fast-growing metro-
politan areas, provides the oil industry with special well
cement, and supplies construction materials for raw-materi-
al mines high in the Andes.
118 R E M U N E R AT I O N R E P O R T
Remuneration report
At Holcim, it is the employees who create value and success

of the company. Holcim therefore wants to be an attractive
employer in the competitive employment market worldwide.
The Group’s compensation system has proven robust, and
forms a solid basis for compensation and motivation at the
various hierarchical levels in line with the main objectives
of Holcim.
Financial compensation of the governing bodies of the members of the Executive Committee and takes
of Holcim Ltd due note of the assessment of the performance of the
This part of the Annual Report covers the financial other members of Senior Management. Also at the
compensation of the Board of Directors and Senior meeting at the beginning of the year, the Nomination &
Management, as well as compensation of former Compensation Committee determines the total
members of governing bodies of Holcim Ltd. This part financial compensation of the Executive Committee
of the Annual Report has also been prepared in com- on a yearly basis, with the Board of Directors tak-
pliance with the applicable regulations, including the ing due note. On a yearly basis, the CEO determines
rules of the SIX Swiss Exchange. No payments were the financial compensation of the other members of
made to close persons. Senior Management, with the Nomination & Com-
pensation Committee taking due note. In autumn, the
Architecture of the pay-setting process Nomination & Compensation Committee reviews the
The Nomination & Compensation Committee advises financial compensation of the Board of Directors for
and supports the Board of Directors, among other the coming year. If necessary, it proposes adjustments
things, in determining the compensation policy and to the Board of Directors.
the compensation of the Board of Directors and Sen-
ior Management. It holds ordinary meetings at least The Chairman of the Nomination & Compensation
three times a year: at the beginning of the year, in the Committee may invite members of the Executive
middle of the year and in autumn. Committee, other officers of the Group or third par-
ties to attend the meetings. After each Nomination &
At the beginning of the year, the degree of achieve- Compensation Committee meeting, the Board is
ment of objectives for the previous year is assessed informed of the topics discussed, decisions taken and
and objectives are set for the current year. The CEO recommendations made.
makes proposals for the assessment of the members
of the Executive Committee and assesses the perfor-
mance of the other members of Senior Management.
On the basis of these proposals, the Nomination &
Compensation Committee decides on the assessment
R E M U N E R AT I O N R E P O R T 119
Compensation policy a “target” amount is determined at the beginning of

Board of Directors the year. This amount is only paid out if the objectives
The members of the Board of Directors receive a fixed set are achieved by 100 percent, and so is variable.
fee, consisting of a set remuneration in cash and Minimum and maximum objective achievement levels
shares in Holcim Ltd. The shares are subject to a five- are also set, for which the respective minimum and
year sale and pledge restriction period. The Chairman maximum payout factors apply, as detailed below.
and Deputy Chairmen of the Board of Directors and Payout factors in between are interpolated on a linear
Chairmen and members of the Audit Committee, the basis according to objective achievement levels.
Nomination & Compensation Committee and the
Governance & Strategy Committee receive additional The Group-related component depends on the finan-
compensation. cial results of the Group. If all objectives are achieved
at target as per December 31 of the relevant year,
Senior management it accounts for an average of 61 percent of variable
In 2014, the senior Management of Holcim Ltd included compensation for Senior Management (excluding the
the Executive Committee, the Area Managers and CEO) and 56 percent in the case of the CEO. It is calcu-
the Corporate Functional Managers. The total annual lated on the basis of the operating EBITDA and return
compensation of Senior Management comprises a on invested capital after tax (ROICAT) achieved. Both
base salary and a variable compensation element. objectives are weighted equally, except for Area
Members of Senior Management are insured in the Managers, for whom 60 percent derives from the
pension fund. The base salary of members of Senior operating EBITDA component and 40 percent from
Management is fixed and is paid in cash. the ROICAT component. For each component, a target
objective (which, if achieved, results in 100 percent
Benchmarking of the total compensation is carried of the targeted variable compensation being paid)
out periodically on the basis of the annual compensa- and maximum and minimum target levels (which, if
tion reports of benchmark companies. The benchmark achieved, result in 200 percent and 0 percent of the
companies include four international companies targeted variable compensation being paid, respec-
in the same industry as Holcim with similar geo- tively) are set. The Group component of the variable
graphical spread and complexity, as well as the ten compensation was set at between CHF 120,000 and
companies with the largest market capitalization in CHF 550,000 for Senior Management (excluding the
Switzerland, i.e. with companies of similar size and CEO), depending on the function and based on 100
complexity. The benchmarking is based on position percent target objective achievement, and at CHF
and responsibilities. In 2010, PricewaterhouseCoopers 901,600 for the CEO.
AG was consulted as external advisor for a fundamen-
tal and detailed review of the compensation system The performance share plan (PSP) approved for imple-
for the CEO and Executive Committee. The results of mentation by January 1, 2014 for CEO, Executive Com-
this review confirmed that the current system served mittee, Senior Management and Function Heads was
robustly during the economic upswing and subse- put on hold due to the merger project. The PSP would
quent crisis, and also offers a value-oriented compen- complement the existing variable compensation com-
sation philosophy for the future. prising Group-related and individual components. It
is based on a combination of internal and external
The variable compensation comprises a Group-related long-term targets set by the Nomination & Compen-
and an individual component. Assuming that all sation Committee. Target achievement is measured
targets are achieved as per December 31 of the year, over a three year period; depending on the level of
the variable compensation of Senior Management achievement, the performance shares cliff vest after
(excluding the CEO) accounts for between 48 percent the performance period of three years. Award level
and 90 percent of base salary, depending on the func- and long-term targets are aligned with market prac-
tion concerned, and 92 percent in case of the CEO. For tice. Good leaver provisions apply. For the CEO and
both the Group-related and the individual components,
the members of the Executive Committee, clawback ment depending on their roles and responsibilities.
provisions apply. These measurable objectives are weighted and relate
to functional performance, strategic objectives, opera-
In view of the extended period between the announce- tional objectives and specific project-related objec-
ment of the merger between Holcim and Lafarge and tives. For each objective, an achievement level in per-
its closing, the Nomination & Compensation Commit- cent is determined depending on target achievement,
tee has reviewed the cash compensation arrange- resulting in a total achievement factor between 0
ments with certain members of the Executive Com- percent and 100 percent. The total achievement factor
mittee and Senior Management and put in place is then multiplied by the targeted variable compensa-
appropriate measures for the purpose of retention. tion to determine the amount of the individual com-
The details will be finalized and disclosed in 2015. ponent. For the year 2014, the individual component
of the variable compensation, at 100 percent target
For the year 2014, the operating EBITDA targets were achievement, was set at between CHF 120,000 and
set at 5 percent like-for-like growth versus the previ- CHF 350,000 for Senior Management (excluding the
ous year (Area Managers at achievement of the budg- CEO), depending on the function concerned, and CHF
eted regional operating EBITDA margin) and at ROICAT 708,400 for the CEO. The average target objective
of 8 percent. The ROICAT target was set based on the achievement and the payout factor for Senior Man-
defined weighted average cost of capital after tax agement (excluding the CEO) came to 76 percent, and
(WACCAT) of 8 percent. The minimum and maximum for the CEO to 93 percent. The individual component
payout factors were set at ±20 percent for the operat- is paid in the form of options on registered shares
ing EBITDA target (for Area Managers –2.5/+5 percent- in the company and a cash component of around 33
age points of the regional operating EBITDA margin) percent.
and at ±3 percentage points for the ROICAT target. In The exercise price of the options corresponds to the
2014, operating EBITDA increased on a comparable stock market price at the grant date. The options
“like-for-like” basis and adjusted for merger costs are restricted for a period of three years following
by 4.0 percent, and the regional operating EBITDA the grant date and have an overall maturity period
margin was below budget by 1.8 percentage points of eight years. The options are valued in accordance
on average, while ROICAT reached 7.3 percent. This with the Black Scholes model (input parameters are
corresponds to an achievement level of 96 percent detailed on page 212). The company reserves the
(operating EBITDA; regional operating EBITDA margin underlying shares from treasury stock or purchases
48 percent) and 76 percent (ROICAT). Senior Manage- them from the market on the grant date of the options.
ment (excluding the CEO) achieved a payout factor
of 78 percent, and the CEO 86 percent. The Group Pension scheme for Senior Management
component is paid in the form of registered shares in The base salaries of Senior Management are insured
the company, subject to a five-year sale and pledge in a layered pension plan system, which includes the
restriction period, and a cash component of approxi- state-controlled social security schemes, i.e. AHV/IV,
mately 33 percent. Allotted shares are valued at the the Holcim Pension Fund, the Holcim Supplementary
average market price in the period from January 1, Pension Fund and the Gemini Pension Fund. With the
2015 to February 15, 2015, and are either taken from exception of the Swiss Federal AHV/IV and some local
treasury stock or purchased from the market. social security systems, all pension plans are defined
contribution promises offering benefits payable in the
The individual component for Senior Management form of retirement, disability, children, surviving spouse
(excluding the CEO) amounts to around 39 percent and orphans’ pensions or equivalent lump sums.
of the variable compensation, if all objectives are
achieved as per December 31, and for the CEO to 44 The Nomination & Compensation Committee has
percent. It depends on the performance of the individ- reviewed and determined the pension scheme for
ual. A range of quantitative and qualitative individual Senior Management as of June 30, 2005, and February
objectives are set for all members of Senior Manage- 23, 2010. Accordingly, the pension scheme for Execu-
tive Committee members and the CEO is targeted to Compensation of the Board of Directors
achieve, at the retirement age of 62 and based on 10 and Senior Management
years of service in Senior Management and 20 years The table shown on pages 122 to 123 discloses the
of service with the Group, an amount of 40 percent compensation of the Board of Directors in 2014 in
of the average of the last three annual base salaries, detail and that of the 16 members of Senior Manage-
or 50 percent for other senior managers, taking into ment in aggregate, as well as the highest amount
account all pension schemes related to current and attributed to a member of Senior Management indi-
past occupation, including state-controlled social vidually. The amounts disclosed are based on the
security schemes. Early or deferred retirement leads accrual principle and relate to 2014 performance.
to adjustments based on actuarial calculations.
In the event of differences between the actual pen- In 2014, twelve non-executive members of the Board
sion fund benefits and the target pension, the Nomi- of Directors received total remuneration of CHF 3.7
nation & Compensation Committee decides in view of million (2013: 3.4) of which CHF 2.3 million (2013: 2.2)
forthcoming retirements about possible contributions was paid in cash, CHF 0.1 million (2013: 0.1) was grant-
to the individual insurance accounts. No contributions ed in the form of post-employment benefits, and CHF
were made in 2014 and 2013. 1.0 million (2012: 0.9) was paid in shares. Other com-
pensation paid totaled CHF 0.2 million (2013: 0.2).
Employment contracts for Senior Management
The contracts of employment of Senior Management The total annual compensation for the members of
are concluded for an indefinite period of time and may Senior Management (including CEO) amounted to
be terminated with one year’s notice. Contracts of 32.3 million (2013: 25.9). This amount comprises base
employment no longer include severance compensa- salaries and variable cash compensation of CHF 19.6
tion. million (2013: 15.1), share-based compensation of CHF
5.0 million (2013: 3.7), employer contributions to pen-
Upon appointment, members of the Executive Com- sion plans of CHF 7.2 million (2013: 6.6) and “other”
mittee may be granted a single allotment of options compensation of CHF 0.5 million (2013: 0.5). The CEO
on registered shares in the company by the Nomina- received a base salary plus variable compensation in
tion & Compensation Committee. The options are cash of CHF 3.8 million (2013: 2.1), share-based com-
restricted for nine years and have a maturity period of pensation of CHF 1.0 million (2013: 0.7), and employer
twelve years. The company reserves the underlying contributions to pension benefits of CHF 0.5 million
shares as part of treasury stock or purchases them from (2013: 0.5). As a result, the CEO’s total compensation,
the market. Individual allotments made during recent amounted to CHF 5.2 million (2013: 3.2). In accordance
years are shown on page 127 of this Annual Report. with the Ordinance Against Excessive Compensation,
the base salary and the variable cash compensation
Options allotted upon appointment to the Executive are disclosed, including foreign withholding tax.
Committee are subject to forfeiture without compen- The contribution to pension plans also include the
sation, for as long as they are restricted, if the Execu- employer’s contributions to social security (AHV/IV).
tive Committee member leaves the Group, except in
the case of retirement, death or disability. Shares and
options received as part of annual remuneration may
not be sold or pledged until the end of the restriction
period. If a member steps down from Senior Man-
agement, the restriction period for such shares and
options allocated as part of the annual remuneration
remains in force without any adjustment in terms
of duration.
Compensation Board of Directors/senior management1

Name Position Base Salary
Cash Shares2
Wolfgang Reitzle Member of the Board of Directors, Chairman since April 29, 2014, Number 3,607
Chairman of the Governance & Strategy Committee since April 29, 2014, CHF 633,333 240,000
Member of the Nomination & Compensation Committee
Beat Hess Deputy Chairman, Number 1,403
Member of the Audit Committee, CHF 386,667 93,333
Member of the Governance & Strategy Committee
Alexander Gut Member of the Board of Directors, Number 1,403
Chairman of the Audit Committee CHF 210,000 93,333
Erich Hunziker Deputy Chairman and Member of the Board of Directors until April 29, 2014, Number 401
Chairman of the Nomination & Compensation Committee until April 29, 2014, CHF 106,667 26,667
Member of the Governance & Strategy Committee until April 29, 2014
Adrian Loader Member of the Board of Directors, Number 1,403
Member of the Nomination & Compensation Committee until April 29, 2014, CHF 160,833 93,333
Chairman of the Nomination & Compensation Committee since April 29, 2014
Jürg Oleas Member of the Board of Directors since April 29, 2014 Number 1,002
CHF 66,667 66,667
Andreas von Planta Member of the Board of Directors until April 29, 2014, Number 401
Member of the Audit Committee until April 29, 2014 CHF 36,667 26,667
Thomas Schmidheiny Member of the Board of Directors, Number 1,403
Member of the Nomination & Compensation Committee CHF 154,133 4 93,333
Hanne Sørensen Member of the Board of Directors, Number 1,403
Member of the Nomination & Compensation Committee since April 29, 2014 CHF 120,328 93,333
Rolf Soiron Chairman and Member of the Board of Directors until April 29, 2014, Number 401
Chairman of the Governance & Strategy Committee until April 29, 2014 CHF 198,560 26,667
Dieter Spälti Member of the Board of Directors, Number 1,403
Member of the Audit Committee, CHF 156,667 93,333
Member of the Governance & Strategy Committee
Anne Wade Member of the Board of Directors, Number 1,403
Member of the Governance & Strategy Committee since April 29, 2014 CHF 116,995 93,333
Total Board of Directors Number 15,633
(non-executive members) CHF 2,347,517 1,039,999
Bernard Fontana5 CEO Number
CHF 1,750,000
Variable compensation
in percentage of base salary
Total senior management6 Number
CHF 13,668,400
Variable compensation
in percentage of base salary
1
Compensation for the Board of Directors and senior management is disclosed gross of withholding tax and employee social security contributions.
“Other compensation” includes employer contributions to pension plans (state old age and survivors insurance [AHV]/disability insurance [IV], pension funds)
as well as a lump sum allowance, long-service benefits, government child payments, etc. The parameters for the fair value calculation of shares and options
allocated in the year under review are disclosed in note 33 “Share compensation plans”.
2 The shares were valued at the average market price in the period from January 1, 2015 to February 15, 2015, and are subject to a five-year sale and pledge
restriction period.
Variable Compensation Other compensation Total Total

Cash Shares2 Options3 Employer contributions Others compensation compensation
to pension plans 2014 2013
12,304 50,000 935,637 190,192
22,632 10,000 512,632 434,116
13,894 10,000 327,227 257,814
5,139 3,333 141,806 419,259
10,000 264,166 190,000
6,667 140,001
4,967 3,333 71,634 208,744
9,286 10,000 266,752 228,885
10,000 223,661 116,080
13,016 41,667 279,910 758,571
11,147 10,000 271,147 229,774
10,000 220,328 116,080
92,385 175,000 3,654,901 3,149,5157

7,765 30,253
2,020,845 516,619 436,849 489,592 26,000 5,239,905 3,219,414
170.0%
45,368 139,199
5,971,261 3,018,261 2,010,020 7,158,546 468,543 32,295,031 25,872,834
80.5%
3 Value of the options according to the Black Scholes model at the time of allocation.
4 Including director's fees from subsidiary companies.
5 Member of senior management receiving the highest compensation.
6 Including CEO.
7 The total compensation of the Board of Directors in 2013 amounted to CHF 3,366,431 and included the compensation of three Board members leaving in 2013.
Compensation of former members of governing bodies

In the year under review, compensation in the amount
of CHF 3.5 million (2013: 2.8) was paid to six (2013: ten)
former members of the Senior Management.
Shareholdings and loans

Shares and options owned by the Board of Directors
On December 31, 2014, non-executive members of the
Board of Directors held a total of 65,843,343 registered
shares in Holcim Ltd. This number comprises privately
acquired shares and those allotted under participa-
tion and compensation schemes. As of the end of 2014
non-executive members of the Board of Directors do
not hold any options from compensation and partici-
pation schemes.
Until the announcement of market-relevant informa-

tion or projects, the Board of Directors, Senior Man-
agement and any employees involved are prohibited
from effecting transactions with equity securities or
other financial instruments of Holcim Ltd, exchange-
listed Group companies or potential target companies
(trade restriction period).
Number of shares held by the Board of Directors as of December 31, 20141

Name Position Total number
of shares 2014
Wolfgang Reitzle Chairman, 2,241
Governance & Strategy Committee Chairman
Beat Hess Deputy Chairman 4,693
Alexander Gut Member, Audit Committee Chairman 4,092
Adrian Loader Member, 10,493
Nomination and Compensation Committee Chairman
Jürg Oleas Member 0
Thomas Schmidheiny Member 65,777,912
Hanne Sørensen Member 1,015
Dieter Spälti Member 41,912
Anne Wade Member 985
Total Board of Directors 65,843,343

of shares 2013
Rolf Soiron Chairman, 39,514
Erich Hunziker Deputy Chairman, 13,551
Nomination & Compensation Committee Chairman
Adrian Loader Member 9,315
Andreas von Planta Member 13,309
Wolfgang Reitzle Member 1,063
Hanne Sørensen Member 230
1
From allocation, shares are subject to a five-year sale and pledge restriction period.
Shares and options owned by Senior Management Furthermore, at the end of 2014, Senior Management
As of December 31, 2014, members of Senior Manage- held a total of 548,184 share options; these arose as a
ment held a total of 173,707 registered shares result of the participation and compensation schemes
in Holcim Ltd. This figure includes both privately of various years. Options are issued solely on registered
acquired shares and those allocated under the shares in Holcim Ltd. One option entitles the holder to
Group’s participation and compensation schemes. subscribe to one registered share in Holcim Ltd.
Number of shares and options held by the senior management as of December 31, 20141
Name Position Total number Total number
of shares 2014 of call options 2014
Bernard Fontana CEO 10,113 73,794
Thomas Aebischer Member of the Executive Committee, CFO 12,285 67,474
Urs Bleisch Member of the Executive Committee 2 3,921 38,563
Roland Köhler Member of the Executive Committee 18,291 87,495
Andreas Leu Member of the Executive Committee 19,302 69,934
Bernard Terver Member of the Executive Committee 25,439 49,123
Ian Thackwray Member of the Executive Committee 11,696 81,719
Horia Adrian Area Manager 2,500 4,251
Daniel Bach Area Manager 3 1,785 0
Alain Bourguignon Area Manager3 4,358 0
Javier de Benito Area Manager 23,737 16,501
Urs Fankhauser Area Manager 6,175 11,077
Kaspar E.A. Wenger Area Manager 19,932 4,952
Jacques Bourgon Corporate Functional Manager 5,480 24,872
Xavier Dedullen Corporate Functional Manager 333 2,373
Aidan Lynam Corporate Functional Manager 4 8,360 16,056
Total senior management 173,707 548,184
Paul Hugentobler Member of the Executive Committee 40,843 96,050
Aidan Lynam Area Manager 7,482 12,718
Onne van der Weijde Area Manager 3,152 3,378
Urs Bleisch Corporate Functional Manager 3,306 939
Xavier Dedullen Corporate Functional Manager 0 0
1 From allocation, shares are subject to a five-year and options to a three-year and nine-year sale restriction period respectively.
2 Since October 1, 2014.
3 Since January 1, 2014.
4 Since February 6, 2014.

Movements in the number of share options outstand-

ing held by Senior Management are as follows:
Number1 Number1
2014 2013
January 1 550,151 508,587
Decrease due to change in senior management 6,116 0
Decrease due to retirements 70,499 0
Granted and vested (individual component of variable compensation) 99,532 96,480
Granted and vested (single allotment) 33,550 11,183
Exercised 11,530 66,099
Lapsed 46,904 0
December 31 548,184 550,151
Of which exercisable at the end of the year 85,982 136,963
1
Adjusted to reflect former share splits and/or capital increases.
The share options outstanding held by senior management

(including former members) at year-end 2014 have the following
expiry dates and exercise prices:
Option grant date Expiry date Exercise price1 Number1 Number1

2014 2013
2002 2014 CHF 67.15 0 122,737
2003 20152 CHF 67.15 0 33,550
2004 20162 CHF 67.15 23,550 33,550
2005 2014 2 CHF 74.54 0 71,423
2006 2014 CHF 100.69 0 58,573
2007 2015 CHF 125.34 49,674 49,674
2008 2016 CHF 104.34 71,083 71,083
2008 2020 CHF 67.15 33,550 33,550
2009 2017 CHF 38.26 153,482 224,478
2010 2018 CHF 71.15 99,493 131,631
2010 2022 CHF 75.40 33,550 33,550
2010 2022 CHF 81.45 33,550 33,550
2011 2019 CHF 67.15 113,957 149,763
2011 2023 CHF 71.50 67,100 67,100
2012 2020 CHF 58.50 179,894 179,894
2012 2024 CHF 67.15 33,550 33,550
2013 2021 CHF 71.90 122,770 122,770
2013 2025 CHF 71.50 11,183 11,183
2014 2022 CHF 69.15 99,532 0
2014 2026 CHF 71.50 33,550 0
Total 1,159,468 1,461,609
1 Adjusted to reflect former share splits and/or capital increases.
2 Due to trade restrictions in 2008, the expiry date of the annual options granted for the years 2003 to 2005 has been extended by one year.
In 2014, one new Executive Committee member was

granted in total 33,550 options.
Loans granted to members of governing bodies

As at December 31, 2014, there were no loans outstand-
ing to members of Senior Management. There were no
loans to members of the Board of Directors or to par-
ties closely related to members of governing bodies.
Other transactions
As part of the employee share purchase plan, Holcim
manages employees’ shares. It sells and purchases
Holcim Ltd shares to and from employees and in the
open market. In this context, the company purchased
Holcim Ltd shares of CHF 0.1 million (2013: 0.1)
at the stock market price from members of senior
management.
No compensation was paid to parties closely related

to members of the governing bodies.
To the General Meeting of Holcim Ltd, Jona
Zurich, February 21, 2015
Report of the statutory auditor on the remuneration report
We have audited the remuneration report on pages 121 (as from section “Compensation of the Board of Directors and Senior Man-
agement”) to 128 of Holcim Ltd for the year ended December 31, 2014.
Responsibility of the Board of Directors

The Board of Directors is responsible for the preparation and overall fair presentation of the remuneration report in accordance
with Swiss law and the Ordinance against Excessive Compensation in Stock Exchange Listed Companies (Ordinance). The Board of
Directors is also responsible for designing the remuneration system and defining individual remuneration packages.
Auditor‘s responsibility
Our responsibility is to express an opinion on the accompanying remuneration report. We conducted our audit in accordance with
Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the remuneration report complies with Swiss law and articles 14 – 16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the remuneration report with regard
to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatements in the remuneration report, whether due to
fraud or error. This audit also includes evaluating the reasonableness of the methods applied to value components of remunera-
tion, as well as assessing the overall presentation of the remuneration report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the remuneration report for the year ended December 31, 2014, of Holcim Ltd complies with Swiss law and articles
14 – 16 of the Ordinance.
Ernst & Young Ltd
Willy Hofstetter Elisa Alfieri

Licensed audit expert Licensed audit expert
(Auditor in charge)
6
FINANCIAL
I N F O R M AT I O N
MD & A >> 132
Consolidated Financial Statements >> 149
Holding Company Results >> 223
Company Data >> 234
5-Year-Review >> 241
MOROCCO REGION AFRICA MIDDLE EAST

CASABLANCA The heterogeneous Group region Africa Middle East is the
smallest region of the Holcim Group. In the north the Group
is active in Morocco and Lebanon, where Holcim has been
supplying construction materials since 1929. In sub-Sahara
Africa the Group sells cement in Nigeria, the Ivory Coast,
Mauritius, and elsewhere.
132 F I N A N CI A L I N F O R M AT I O N MD & A
Management discussion and analysis 2014
Holcim achieved a solid financial performance with an increase in like-

for-like operating profit and net income, despite restructuring and merg-
er costs of CHF 149 million and further setbacks in the global economy
this year. The Holcim Leadership Journey exceeded expectations, while
the recovery in the US and UK, as well as the right-sizing initiatives imple-
mented in previous years, proved advantageous for the operational
results.
This discussion and analysis of the Group’s financial situation Against this backdrop, Holcim was well-positioned to take
and results of operations should be read in conjunction with advantage of opportunities and reduce costs further after the
the shareholders’ letter, the individual reports for the Group restructuring measures undertaken in the previous years. The
regions, the consolidated financial statements and the notes clear focus toward customer excellence proved successful. A
thereto. The quarterly reports contain additional information like-for-like operating profit and margin growth could be
on the Group regions and business performance. achieved thanks to successful price increases and cost optimi-
zations, largely supported by the Holcim Leadership Journey.
Overview
In 2014, the uneven global recovery continued. Among the The Holcim Leadership Journey launched in 2012 realized a total
advanced economies, the United States and the United King- benefit of CHF 1.8 billion, exceeding its operating profit objec-
dom regained speed leaving the crisis behind; however, some tive by CHF 348 million. The Group had set itself the target of
European countries still had to address the legacies of the contributing CHF 1.5 billion to the operating profit by the end
financial crisis, ranging from debt overhang to high levels of of 2014, compared to the base year 2011 and under similar mar-
unemployment. In emerging economies, the growth was below ket conditions. In 2014, the contribution of the Holcim Leader-
the expected levels. The Indian economy experienced a ship Journey to the Group’s operating profit amounted to CHF
rebound after the elections, partly thanks to a renewal of con- 748 million.
fidence and effective policies. The economy in a number of
Latin American countries remained in a low gear. Political ten- Holcim also succeeded in improving its net income. However,
sions and uncertainties took their toll in Russia as well as in the continued uncertainty in the economic situation was
certain economies in Africa Middle East. As a consequence, the reflected in the currency market; the Swiss franc appreciated
demand for building materials was below prior-year levels in against a number of currencies in 2014, mainly the Indian
some Holcim markets. Rupee, the Indonesian Rupee, the Canadian dollar along with a
number of Latin American currencies. Overall, this led to a sig-
nificant negative impact on the results reported in Swiss
francs.
F I N A N CI A L I N F O R M AT I O N MD & A 133
In the year under review, Holcim achieved an operating EBITDA Net income increased by CHF 23 million to CHF 1,619 million.
of CHF 3,747 million, showing like-for-like growth of CHF 77 mil- The net income attributable to Holcim shareholders grew by
lion or 2.0 percent. The currency translation effect and the CHF 15 million to CHF 1,287 million.
change in Group structure affected the operating EBITDA by
-5.4 percent and -0.4 percent respectively. Adjusted for restruc- Cash flow from operating activities dropped by CHF 288 million
turing costs of CHF 61 million and merger costs of CHF 77 mil- or 10.3 percent. The currency translation had a substantial neg-
lion, the operating EBITDA increased by CHF 215 million or 5.5 ative effect of CHF 103 million or 3.7 percent on the cash flow
percent on a like-for-like basis. The Group’s operating EBITDA from operating activities, while changes in consolidation struc-
margin decreased by 0.1 percentage point to 19.6 percent. On a ture affected the cash flow by -0.2 percent. On a like-for-like
like-for-like basis, the margin dropped by 0.2 percentage point. basis, cash flow from operating activities decreased by CHF 179
Adjusted for restructuring and merger costs, the like-for-like million or 6.4 percent.
operating EBITDA margin increased by 0.5 percentage point.
Net financial debt increased by CHF 183 million to CHF 9,644
The Group generated an operating profit of CHF 2,317 million, million. The impact from the currency translation effect of CHF
which was up CHF 100 million or 4.2 percent on a like-for-like 250 million or 2.6 percent and the changes in consolidation
basis. The currency translation effect heavily impacted the structure of CHF 45 million explained this growth. Adjusted for
operating profit growth by -6.2 percent while the positive these effects, net financial debt decreased by CHF 113 million or
change in structure effects contributed 0.3 percent to operat- 1.2 percent on a like-for-like basis.
ing profit. Adjusted for restructuring costs of CHF 72 million
and merger costs of CHF 77 million, the operating profit grew
by CHF 249 million or 10.6 percent on a like-for-like basis. The
Group’s operating profit margin increased by 0.2 percentage
point to 12.1 percent. On a like-for-like basis, the margin
increased by 0.1 percentage point. Adjusted for restructuring
and merger costs, the like-for-like operating profit margin
increased by 0.9 percentage point.
Operating results fourth quarter

Sales volumes and principal key figures
Oct–Dec Oct–Dec ±% ±%
2014 1 2013 1 like-for-
like
Sales of cement in million t 34.4 34.6 –0.6 –0.6
– of which mature markets in % 22 21
– of which emerging markets in % 78 79
Sales of ready-mix concrete in million m3 9.2 10.0 –8.0 –7.1
Net sales in million CHF 4,867 4,778 +1.9 +1.9

Operating EBITDA in million CHF 1,006 945 +6.5 +5.9
Net income in million CHF 458 319 +43.5
Net income – shareholders of Holcim Ltd in million CHF 355 233 +52.5
Cash flow from operating activities in million CHF 1,451 1,615 –10.1 –8.1
1
The percentage split disclosed for mature markets and emerging markets is calculated based on the sum of the operating segments Asia Pacific, Latin America,
Europe, North America and Africa Middle East, and does not include Corporate/Eliminations.
Demand for cement, aggregates and other construction mate- On a like-for-like basis, cement deliveries of 34.4 million tonnes
rials and services is seasonal, as climatic conditions affect the declined by 0.2 million tonnes or 0.6 percent compared to the
level of activity in the construction sector. Holcim typically fourth quarter 2013. The solid growth of 14.6 percent in North
experiences a reduction in sales during the first and fourth America could not make up for volume drops in Europe, Latin
quarters, reflecting the effect of the winter season in its princi- America and Africa Middle East while volume growth slowed
pal markets in Europe and North America, and tends to see an down in Asia Pacific.
increase in sales in the second and third quarters, reflecting
the effect of the summer season. This effect can be particu- Sales of aggregates reached 39.4 million tonnes. They declined
larly pronounced in harsh winters. by 0.2 million tonnes or 0.5 percent on a like-for-like basis,
impacted by the business restructuring last year in Latin Amer-
ica and lower sales volume in Asia Pacific and Africa Middle
East. These unfavorable developments could be partly offset
by the robust growth in North America and improvements in market in Western and Central Europe. In Latin America espe-
Europe. In Europe, volumes slightly progressed in the fourth cially, volumes dropped as the ready-mix concrete business has
quarter, backed by lively activity in the United Kingdom and in been rationalized and re-oriented toward the most-profitable
Romania which compensated for market contraction in other markets.
countries such as France, Belgium and Switzerland.
9.2 million cubic meters of ready-mix concrete were supplied in

the quarter, a year-on-year reduction of 0.7 million cubic
meters or 7.1 percent on a like-for-like basis. With the exception
of North America, all regions recorded lower volumes. In
Europe, the drop was mostly driven by a shrinking construction
Million CHF Oct–Dec Oct–Dec ±% ±%

2014 2013 like-for-
like
Net sales by region
Asia Pacific 1,764 1,679 +5.1 +2.4
Latin America 770 793 –2.9 +1.5
Europe 1,303 1,367 –4.7 –3.6
North America 958 828 +15.7 +14.4
Africa Middle East 207 218 –5.4 –6.5
Corporate/Eliminations (134) (107)
Total 4,867 4,778 +1.9 +1.9
Operating profit by region

Asia Pacific 232 229 +1.1 –1.1
Latin America 174 147 +18.1 +19.1
Europe 113 121 –6.5 +8.6
North America 99 52 +90.0 +88.8
Africa Middle East 49 54 –10.1 –10.5
Total 598 559 +6.9 +8.9
Cash flow
Cash flow from operating activities 1,451 1,615 –10.1 –8.1
Net capital expenditures on property, plant and equipment

to maintain productive capacity and to secure competitiveness (373) (346) –7.9
Investments in property, plant and equipment for expansion (237) (373) +36.5
Financial di(in)vestments net 39 (74) +152.5
Cash flow from investing activities (570) (793) +28.1
Fourth quarter consolidated net sales increased year-on-year again posted a positive performance despite merger-related
by CHF 89 million or 1.9 percent to CHF 4,867 million. A favor- costs. In Asia Pacific, operating profit slightly missed last year’s
able currency translation effect of 0.4 percent almost canceled level as effects from cost increases could not be compensated
out the impact from the change in structure of -0.4 percent on by favorable volume and price development. Africa Middle East,
net sales. At constant scope and exchange rates consolidated affected by volume reductions in its chief markets, reported
net sales rose by CHF 90 million or 1.9 percent. The quarterly negative operating profit growth in the quarter.
net sales increase was supported by favorable price develop-
ment in all regions and primarily North America, Europe and The quarterly operating profit margin increased like-for-like by
Asia Pacific. However, negative volume effect in Europe, Latin 0.8 percentage point to 12.3 percent. Adjusted for merger and
America and Africa Middle East harmed the Group’s net sales. restructuring costs, the margin rose by 2.0 percentage points
on a like-for-like basis to 13.5 percent.
The quarterly operating EBITDA rose year-on-year by CHF 62
million or 6.5 percent to CHF 1,006 million. The currency effect Fourth quarter cash flow from operating activities decreased
of 0.6 percent slightly benefited the operating result, while the year-on-year by CHF 164 million or 10.1 percent. On a like-for-
change in structure had no significant influence. On a like-for- like basis, the cash flow from operating activities declined by
like basis, the operating EBITDA rose by CHF 55 million or 5.9 CHF 130 million or 8.1 percent; the positive operating EBITDA
percent. Adjusted for restructuring costs of CHF 33 million and variance was offset by the unfavorable change in net working
merger costs of CHF 23 million booked in the quarter, the like- capital recorded in all regions and primarily Europe.
for-like operating EBITDA growth reached CHF 111 million or 11.8
percent.
The quarterly operating profit increased year-on-year by CHF

39 million to CHF 598 million. Adjusted for the positive cur-
rency impact of 0.9 percent and the unfavorable change in
structure effect of 2.9 percent, the like-for-like operating profit
rose by CHF 50 million or 8.9 percent. Excluding restructuring
and merger costs of CHF 58 million, the operating profit
growth reached CHF 108 million or 19.2 percent on a like-for-
like basis. This improvement was largely driven by North Amer-
ica, where good market conditions allowed for favorable price
and volume development. By contrast with the sluggish devel-
opment observed in the previous quarters in 2014, like-for-like
operating profit grew by 19.1 percent in Latin America thanks to
lower fixed costs and successful price increases in some coun-
tries. After a setback in the third quarter 2014, Europe once
Operating results for the year 2014

Sales volumes and principal key figures
Jan–Dec Jan–Dec ±% ±%
2014 1 2013 1 like-for-
like
Sales of ready-mix concrete in million m3 37.0 39.5 –6.3 –4.9

Operating EBITDA in million CHF 3,747 3,896 –3.8 +2.0
Operating profit in million CHF 2,317 2,357 –1.7 +4.2
Net income in million CHF 1,619 1,596 +1.5
Net income – shareholders of Holcim Ltd in million CHF 1,287 1,272 +1.2
Cash flow from operating activities in million CHF 2,498 2,787 –10.3 –6.4
1
The percentage split disclosed for mature markets and emerging markets is calculated based on the sum of the operating segments Asia Pacific, Latin America,
Europe, North America and Africa Middle East, and does not include Corporate/Eliminations.
Sales volumes affected by natural disasters supported the demand for infra-
Cement sales volumes exceeded the previous year’s level, structure projects and residential buildings. In addition, both
backed by a stronger economy in North America and economic the government and the private sector invested in infrastruc-
growth experienced in some countries in Asia Pacific such as ture projects while some companies were venturing in mining
India and the Philippines. This progress could offset adverse sit- and power plants. As a result, Holcim sales volumes increased
uations in Latin America where some economies remained in a significantly versus last year. The situation in India proved to be
low gear, as well as in Europe, which still faces economic head- more promising following the elections, and construction activ-
winds as the legacy of the global crisis. Consolidated cement ities started to pick up gradually as the government kicked off
sales were up 1.0 percent to 140.3 million tonnes, a like-for-like new projects in order to stimulate growth. Both Group compa-
increase of 1.4 percent or 1.9 million tonnes. nies in India have benefited from this rebound. Growth of
cement sales in Indonesia is estimated to have slowed down in
Some economies in the Asia Pacific Group region remained on 2014 amid uncertainties brought about by the “political year”,
course to record growth. As a consequence, cement sales vol- which led to the postponement of various infrastructure proj-
umes rose by 1.4 percent or 1.0 million tonnes. At constant ects. However, Holcim sales volumes improved over the last
scope of consolidation, cement sales volumes increased by 2.0 year, supported by additional volumes from the newly commis-
percent or 1.4 million tonnes. In the Philippines, the reconstruc- sioned Tuban cement plant.
tion and rehabilitation efforts of the government in areas
In Latin America, the economic situation remained uneven in North America recorded growth in cement sales volumes of 11.4
2014 as solid development in some smaller economies was cou- percent or 1.3 million tonnes, mostly stemming from the United
pled with slower growth in larger countries such as Brazil and States, where economic activity gathered momentum as the
Argentina – with the latter being affected by the debt crisis. headwinds from fiscal policy waned and household consump-
Cement sales volumes decreased by 1.5 percent or 0.4 million tion gained speed. Holcim benefited from particularly strong
tonnes and were not impacted by changes in the Group struc- demand in the Northern Central region and a new monthly
ture. While Holcim Ecuador achieved an all-time record in 2013, sales record was reported by the Group company over the last 7
lower consumption of bagged cement and delays in large public years.
projects caused by government liquidity constraints led to
cement volumes decrease for the local Group company in 2014. Cement shipment in Africa Middle East picked up by 5.4 percent
Holcim Argentina suffered from a volume drop in cement, as or 0.4 million tonnes. A change in Group structure impacted
the debt crisis strongly affected construction markets, leading volumes by -0.8 percent or -0.1 million tonnes. In Morocco, the
to a significant fall in demand for building materials. Drops in national cement consumption fell by 5.4 percent over the last
some countries were partly mitigated by the volumes improve- twelve months however, the Group company achieved volume
ment experienced in Brazil, where Holcim benefited from its growth thanks to clinker exports to the Ivory Coast. Sales vol-
position in the livelier construction markets of the south-east, umes contraction in Guinea, Mauritius and Lebanon partly off-
as well as in Mexico. The Mexican construction sector benefited set the regional growth.
from the National Infrastructure Plan, which boosted public
sector investment and provided financial support for construc- Aggregates sales volumes decreased by 0.9 percent to 153.1 mil-
tion activity. lion tonnes. On a like-for-like basis, the decrease amounted to
0.4 percent or 0.7 million tonnes, a development partly
Europe witnessed a slow and fragile recovery. GDP growth explained by the closure of unprofitable business units notably
began to slow in spring 2014 and remained very modest, below in Latin America. The region posted a drop of 26.4 percent or 2.7
the expected levels. Construction markets were affected by the million tonnes. Shipments of aggregates fell by 1.0 percent or
level of uncertainty felt, which caused demand to slow down 0.7 million tonnes in Europe. Significant setbacks were experi-
following a strong first quarter with lively building activity. enced in France, where the lack of governmental stimuli
Cement sales volumes fell by 1.0 percent or 0.3 million tonnes. A severely hampered demand for construction and infrastructure
change in Group structure did not impact cement sales vol- projects. Volumes in Asia Pacific retracted by 1.5 percent or 0.4
umes. The largest volume drop was experienced in Azerbaijan; million tonnes, hindered by fewer projects in the resource sec-
the local Group company faced with market pressure from new tor at Holcim Australia. Africa Middle East recorded a contrac-
entrants and increasing imports could not maintain the high tion of 0.2 million tonnes or 8.7 percent in aggregates volumes.
levels of volume growth recorded in the last years. In Italy, North America was the only region to record substantial growth
Holcim sales volumes were down as a result of the sluggish with 7.7 percent or 3.3 million tonnes.
demand for building materials being exacerbated by a further
contraction of economic output in 2014. These drawbacks could Sales of ready-mix concrete declined by 6.3 percent to 37.0 mil-
however be partly compensated by significant volume growth lion cubic meters. Adjusted for changes in Group structure, the
in Russia – despite political tensions – and in Spain, where the drop amounted to 4.9 percent or 1.9 million cubic meters. With
Group company was able to increase cement sales on the the exception of North America which posted a moderate
strength of export deliveries. It is also worth mentioning the growth of 2.2 percent or 0.2 million cubic meters on a like-for-
cement volume growth in Holcim Romania, which came about like basis, all Group regions witnessed a negative development.
thanks to larger projects in the Bucharest area. Lower volumes primarily resulted from restructuring initiatives
implemented in Latin America to refocus the ready-mix con- percent or 0.1 million cubic meters in Asia Pacific. The volume
crete business. The region reported for the financial year a contraction of 15.0 percent or 0.1 million cubic meters recorded
decrease in ready-mix concrete sales of 20.0 percent or 1.6 mil- in Africa Middle East was mostly stemming from Lebanon and
lion cubic meters with the largest volume drops being recorded resulted from the disposal of a plant and a general slowdown of
mainly in Mexico, Chile, Brazil and Ecuador. In Europe, the solid the business, especially in the Beirut area.
growth in the United Kingdom could only mitigate volume
losses in Belgium, France and Italy which suffered from the
sluggish demand; at a constant scope, ready-mix concrete vol-
umes fell by 2.5 percent or 0.3 million cubic meter. Singapore
and Vietnam contributed most to the volume decrease of 0.6
Net sales
Net sales by region
Million CHF Jan–Dec Jan–Dec ±% ±%
2014 2013 like-for-
like
Asia Pacific 6,970 7,282 –4.3 +3.8
Latin America 3,012 3,349 –10.0 +0.6
Europe 5,554 5,611 –1.0 +0.2
North America 3,336 3,171 +5.2 +10.7
Africa Middle East 861 884 –2.6 +0.8
Total 19,110 19,719 –3.1 +3.0
For the full year, net sales receded by CHF 608 million or 3.1 recorded a top-line growth due to price increases in cement
percent to reach CHF 19,110 million in 2014. An unfavorable cur- and ready-mix concrete, as well as an increase in volumes
rency effect of CHF 1,030 million or 5.2 percent and negative thanks to commercial initiatives and the opening of new mar-
changes in consolidation structure impact of CHF 173 million or kets with the commissioning of Tuban I. Most Group compa-
0.9 percent strongly harmed net sales performance. Like-for- nies in Asia Pacific witnessed net sales growth on a like-for-like
like net sales increased by CHF 595 million or 3.0 percent. All basis; however, at Holcim Australia, prices were hit by a detri-
regions recorded like-for-like net sales increases. This growth mental regional and product mix effect. At Holcim Singapore,
mostly resulted from price increases, particularly in North volumes of ready-mix concrete fell, reflecting challenging mar-
America against the backdrop of a favorable market environ- ket conditions.
ment and in Latin America in response to cost inflation.
In Latin America, net sales grew by CHF 20 million or 0.6 per-
In Asia Pacific, net sales rose by CHF 274 million or 3.8 percent cent on a like-for-like basis with an uneven economic develop-
on a like-for-like basis, driven by the two Indian companies, the ment throughout the Group region. This growth was mostly
Philippines and Indonesia. Both Indian Group companies supported by Holcim Argentina, driving prices up. Stronger
increased their top line, thanks to commercial initiatives open- cement and ready-mix concrete prices were also witnessed at
ing new markets and the sale of premium products, as well as Holcim Mexico, making up for a volume contraction in the
overall price increases in almost all regions, partly imple- aggregates and ready-mix concrete businesses following the
mented as a response to cost inflation. At Holcim Philippines, closure of several plants. On the other hand, net sales at
net sales improved mostly on the back of volume growth. The Cemento Polpaico in Chile suffered from lower volumes in all
cement construction industry grew at a dynamic pace, boosted segments. This volume effect was particularly sharp in the
by the new government’s infrastructure projects and the con- ready-mix concrete business, which was affected by the com-
tinued high level of demand from the private sector backed by pletion of several mining projects and the right-sizing initia-
increased confidence in the government. Holcim Indonesia tives implemented in late 2013. Lower volumes harmed net
sales growth at Holcim Ecuador, while growth in the construc- period under review, as construction markets in all regions
tion industry decelerated on the back of a drop-off in govern- except Quebec and Atlantic were more dynamic. Deliveries of
ment spending which partly resulted from weakening oil reve- aggregates and ready-mix concrete also increased thanks to
nue. A reduction in net sales at Holcim Brazil was driven by greater demand for highways as well as a number of large proj-
weaker volumes in the ready-mix concrete business, mostly ects that were kicked off in summer.
explained by the strategic right-sizing of the business last year.
Despite a difficult economic situation affecting the construc- In Africa Middle East, net sales increased by CHF 7 million or
tion market, the Group company managed to raise cement vol- 0.8 percent like-for-like. In Holcim Morocco, the main contribu-
umes thanks to strong demand in larger cities, mitigating the tor to net sales, the growth resulted from higher volumes
overall volume loss impact on net sales. thanks to clinker exports to Socimat in Ivory Coast and effi-
cient pricing management from various commercial initiatives.
Europe reported a modest like-for-like net sales growth of CHF On the other hand, net sales in Holcim Lebanon were affected
12 million or 0.2 percent thanks to the significant positive con- by a drop in ready-mix concrete sales due to plant closure and
tribution of Aggregate Industries UK. Growth became more lower demand in the Beirut area. Cement prices contracted as
firmly established in the United Kingdom, where activity was well, while the demand for construction material fell versus
buoyed by improved credit conditions and increased confi- last year. Guinea, impacted by the outbreak of Ebola virus,
dence. Government programs supported residential construc- recorded a strong drop in cement volumes.
tion and drove the demand for building materials. The Group
company’s top line benefited from this robust momentum. In The relative weight of Europe in the Group’s total net sales
this context, prices were raised further. Despite the sanctions increased slightly compared to the previous year, to 29 percent.
against Russia deteriorating the country’s business environ- The contribution of Asia Pacific at 37 percent remained close to
ment and deterring foreign investment, Holcim Russia man- the previous year value. However, the weighting of emerging
aged to increase net sales through higher volumes in 2014 due markets slightly decreased to 51 percent of total net sales (2013:
to capacity optimization in its Shurovo plant. At Holcim Roma- 53).
nia, net sales profited from the higher volumes generated out
of specific projects in the Bucharest area, even though the
country experienced modest growth in the construction indus-
try. These good performances where however hampered by
adverse net sales developments caused by lower volumes in
France, Azerbaijan, Switzerland, Belgium and Italy.
In North America, net sales were up CHF 338 million or 10.7 per-
cent on a like-for-like basis. Strong volumes development in
both countries and higher prices implemented in a favorable
economic context in the United States coalesced to push reve-
nues up. In the US, net sales growth was strongly supported by
volumes improvement driven by a favorable economic environ-
ment in most states with a higher growth in Mid-Atlantic,
Texas, Colorado and Oklahoma. The return to growth allowed
Holcim US to achieve market price increases while Customer
Excellence initiatives were implemented toward margin opti-
mization and supported top line growth. In Canada, the net
sales progression relied mainly on volumes growth. The cement
volumes reported by the Group company were up during the
Operating Profit
Operating Profit by region
Million CHF Jan–Dec Jan–Dec ±% ±%
2014 2013 like-for-
like
Asia Pacific 934 1,030 –9.4 –1.7
Latin America 663 722 –8.2 –1.1
Europe 510 436 +16.8 +16.1
North America 314 199 +58.3 +65.1
Africa Middle East 220 216 +1.6 +5.8
Total 2,317 2,357 –1.7 +4.2
The operating profit decreased in 2014 by CHF 40 million or 1.7 tional capacities and increased electricity costs. At Holcim Aus-
percent to CHF 2,317 million. The currency-related effect, which tralia, visible costs containment and lower depreciations could
was particularly strong, pulled down operating profit by CHF only mitigate the unfavorable effect from lower prices. Prices
147 million or 6.2 percent, while effects from changes in the dropped in aggregate and ready-mix concrete due to product
scope of consolidation of CHF 7 million or 0.3 percent contrib- mix effects, the termination of projects with high-value prod-
uted positively to the operating profit. On a like-for-like basis, ucts and the competitive environment in some markets. Fur-
the operating profit grew by CHF 100 million or 4.2 percent. thermore the volume development was detrimental to the
Adjusted for the restructuring and merger costs booked in 2014 operating profit since the aggregate business was affected by
and amounting to CHF 149 million, the operating profit was up fewer projects in the resources sector. ACC in India was faced
by CHF 249 million or 10.6 percent on a like-for-like basis, repre- with cost increases partly explained by delayed renewal of
senting a clear improvement over 2013. At constant scope and extraction permits which could not be passed on to customers.
exchange rates, North America’s operating profit improved by These drawbacks were however tempered by improvements in
65.1 percent, and Europe recorded an increase of 16.1 percent. Ambuja Cements in India, where efficient price increases
These two Group regions contributed the most to the positive largely favored the operating profit growth, as well as in
operating profit performance, offsetting the adverse develop- Holcim Philippines, thanks to a positive effect on operating
ment in Asia Pacific (-1.7 percent) and Latin America (-1.1 per- profit from robust volumes hike.
cent). Holcim sold more CO2 certificates in 2014, improving the
operating EBITDA by CHF 20 million (2014: CHF 47 million, 2013: In Latin America, the operating profit decreased on a like-for-
CHF 27 million). like basis by CHF 8 million or 1.1 percent despite a stronger per-
formance in Mexico. With the exception of Mexico, Costa Rica
The Holcim Leadership Journey contributed CHF 748 million to and Nicaragua, the region’s Group companies reported lower
the improvements in the consolidated operating profit 2014. results. Brazil and Chile in particular impacted the regional per-
Out of this increase, CHF 248 million was generated by cus- formance. Brazil faced increases in input costs which could not
tomer excellence initiatives, while CHF 500 million resulted be passed on to customers due to the difficult market environ-
from specific cost leadership programs related to energy, logis- ment; further, prices were impacted by the unfavorable prod-
tics, procurement and fixed costs. uct mix effect. As a result of a shrinking construction sector in
Chile, volumes plummeted, putting a burden on the region’s
On a like-for-like basis, Asia Pacific experienced the largest operating profit.
reduction in operating profit among the Group’s regions with a
drop of CHF 18 million or 1.7 percent. The three Group compa-
nies behind this decline were Holcim Indonesia, Holcim Austra-
lia and ACC in India. Indonesia in particular was faced with
costs increases driven by inflation, the commissioning of addi-
In 2014, Europe was the second largest growth contributor and lower depreciation, the operating profit improved as well in
generated a like-for-like operating profit increase of CHF 70 Guinea and compensated for significant losses from volumes
million or 16.1 percent. This growth was the combined result of drop. While most entities were on the positive side, Socimat in
a good first quarter, supported by favorable climate conditions, Ivory Coast and Holcim Lebanon reported lower operating
while the restructuring initiatives implemented in prior years profit.
continued to bear fruits. Aggregate Industries UK benefited
from high demand for building materials, driven by the residen- The shift in the regional weighting of operating profit was
tial sector. The Group company clearly led the operating profit most pronounced for North America, which accounted for 14
improvement in the region thanks to a strong top line growth percent of operating profit (2013: 8), and Europe, which
and a leaner cost structure. Despite the lack of impetus in the accounted for 22 percent of operating profit (2013: 19), while
Italian economy, Holcim managed to increase its operating the relative weighting of Asia Pacific decreased to 40 percent
profit, mostly thanks to cost optimizations and the right-sizing (2013: 44). In 2014, the weighting of emerging markets in the
of its operations. The situation in Eastern Europe was mixed, Group’s operating profit amounted to 71 percent (2013: 74).
however the Group companies recorded improvements overall.
As the volume growth remained favorable, the main perfor- Energy costs
mance lever in Eastern Europe was the cost optimizations fol- Energy expenses comprise costs related to both fuel and elec-
lowing the restructuring initiatives implemented in the previ- tricity. In absolute terms, the Group’s energy costs had fol-
ous years. Nevertheless, the recovery of many European lowed a slight declining trend over recent years, particularly
economies remained muted and below expectations. Some visible since 2012, which was partly explained by improvements
markets such as France, Spain and Belgium recorded lower than in energy efficiency that contributed to reduce energy con-
expected growth rates in the second half of 2014 due to stag- sumption. Initiatives in the areas of electrical energy manage-
nating economies. While volumes were under pressure, in most ment, grinding and fuel-mix optimization and productivity
cases prices could not be raised. The largest negative impact improvements were key to reduce costs. Strategic sourcing,
on operating profit came however from volumes drop in Azer- implementation of hedging and long-term contracts contrib-
baijan, which faced new entrants on the cement market and uted further.
imports from Iran. Furthermore, restructuring costs of CHF 38
million have impacted the region’s performance but were Holcim’s energy prices are subject to much less, and some-
partly offset by higher CO2 revenues of CHF 34 million. times delayed volatility as compared to market prices since 60
percent of the fuel consumed in the cement production is coal,
In North America, the operating profit increased by CHF 129 of which about half is purchased on the international market
million or 65.1 percent like-for-like. Strong volumes growth and while the remaining portion is bought locally by Group compa-
pricing effects in the United States, but as well to a lesser nies and is therefore less subject to volatility. In addition, fuel
extent in Canada, were the driving force of this solid progress. stocks result in time lags. Thus, changes in market prices do
The United States economy continued on the path to recovery, not immediately impact the expenses recorded in the state-
fuelled by a dynamic residential sector, while Canada experi- ment of income.
enced growth driven by commercial and public investments.
Africa Middle East recorded an increase in operating profit of

CHF 12 million or 5.8 percent on a like-for-like basis. Morocco,
the major player with regard to growth in the region, experi-
enced a drop of its national cement consumption, although the
Group company compensated this drop via clinker exports to
Socimat in Ivory Coast. Despite the lower domestic cement
sales volumes, Holcim Morocco managed to improve its finan-
cial performance through general price increases as well as
through various Customer Excellence initiatives. Thanks to
Holcim energy cost per tonne of cement produced compared In Latin America, the operating profit margin dropped by 0.4
to market prices percentage point on a like-for-like basis. While cost hikes driven
by inflation could be passed on to customers through higher
prices, the corresponding margin improvement was negatively
25
impacted by a drop in volumes. Holcim Mexico succeeded in
20 improving its margin, but other Group companies such as
Holcim Argentina, Holcim Brazil and Cemento Polpaico in Chile
15
failed to match the previous year’s margin, putting pressure on
10 the regional indicator.
Barrel
5 In Europe, the operating profit margin grew by 1.2 percentage
points like-for-like. Volumes losses were largely compensated
0
2010 2011 2012 2013 2014 by successful price increases and lower costs, partially resulting
from the restructuring measures implemented in previous
(CHF)1 years. Weaker margins recorded in Azerbaijan, Spain and France
(CHF) were offset by growth in most other Group companies and pri-
(CHF) marily in Aggregate Industries UK and Holcim Italy. Adjusted
(USD) for restructuring costs booked in Europe, the operating profit
(USD)2 margin grew by 2.0 percentage points.
1
Energy espenses stated quarterly.
2
Free on board – shipping point (excluding freight cost) In North America, the operating profit margin grew by a solid
3.1 percentage points on a like-for-like basis, mostly on the
account of Holcim US. Strong volume growth and a favorable
Operating profit margin price development throughout all segments contributed to this
In the year under review, the Group’s operating profit margin success.
increased by 0.2 percentage point to 12.1 percent. Currency
fluctuation and changes in the scope of consolidation had a The like-for-like operating profit margin was up by 1.2 percent-
slightly positive effect on the Group’s margin. On a like-for-like age points in Africa Middle East. Successful price increases in
basis the operating profit margin improved by 0.1 percentage Morocco and overall cost containment in the region (except for
point. Adjusted for restructuring and merger costs booked in Ivory Coast) were the main reasons behind this progress. Fur-
2014, the operating profit progressed by 0.9 percentage point thermore, lower depreciation charges in Guinea contributed
on a like-for-like basis. This margin improvement was mostly positively to the margin growth.
driven by a strong effect from higher prices underpinned by
favorable volume development, while cost containment mea- In the cement segment, the operating profit margin decreased
sures associated to the Holcim Leadership Journey proved to be like-for-like by 0.6 percent to 17.0 percent. With the exception
effective. Adjusted for restructuring and merger costs, fixed of Asia Pacific, Latin America and Europe, all Group regions
costs were stable as compared to the previous year. reported a margin improvement in this segment. In the aggre-
gates segment, the margin improved like-for-like by 1.2 per-
At constant scope and exchange rate, operating profit margin centage points to 8.9 percent, driven by Europe and North
in Asia Pacific fell by 0.7 percentage point, as stronger prices America. In the product segment other construction materials
were not sufficient to cover the unfavorable effects from infla- and services, the operating profit margin rose by 0.9 percent-
tion-induced increases in input costs. The margin decrease in age point to -0.1 percent on account of the better performance
this Group region was brought about by Holcim Indonesia and in Europe and North America.
ACC in India while improvements in Ambuja Cements in India
and Holcim Philippines partly mitigated this drop.
Group net income In this environment cement volumes should increase in all
The Group net income grew by CHF 23 million or 1.5 percent to Group regions in 2015 with the exception of Europe. Aggregate
CHF 1,619 million. A significant reduction in financing costs and and ready-mix concrete volumes are expected to increase. On a
foreign exchange losses as well as higher gains on sales of stand-alone basis and unconnected to the proposed merger
Property Plant and Equipment overcompensated lower operat- with Lafarge, the Board of Directors and Executive Committee
ing profit, increased income taxes, reduced share of profit of of Holcim expect like-for-like operating profit adjusted for
associates and joint ventures and lower gains on sales of finan- merger-related costs to be between CHF 2.7 billion and 2.9 bil-
cial investments (In 2013, Holcim recorded a gain of CHF 136 lion in 2015. Higher pricing and ongoing cost savings are antici-
million on the sale of a 25 percent stake in Cement Australia pated to offset cost inflation, leading to a further expansion in
while In 2014, a gain of CHF 56 million was recorded on the dis- operating margins in 2015.
posal of subsidiaries).
Outlook 2015
Holcim expects for 2015 that the global economy continues its
gradual recovery. Key construction markets of Holcim in coun-
tries like the USA, India, Indonesia, Mexico, Colombia, the UK,
and the Philippines are expected to be the main growth driv-
ers. Europe overall should have a flat development. Latin Amer-
ica will continue to face uncertainties in countries such as
Argentina and Brazil but should overall show slight growth in
2015. The Asia Pacific region is expected to grow although at a
still modest pace. Africa Middle East is expected gradually to
improve.
Financing activities, investments and liquidity

Cash flow
Million CHF Jan–Dec Jan–Dec ±%
2014 2013
Cash flow from operating activities 2,498 2,787 –10.3
Net capital expenditures on property, plant and equipment
to maintain productive capacity and to secure competitiveness (738) (719) –2.8
Free cash flow 1,760 2,068 –14.9
Investments in property, plant and equipment for expansion (1,020) (1,282) +20.4
Financial divestments net 34 336 –89.8
Dividends paid (721) (576) –25.2
Financing surplus 53 546 –90.3
Cash flow from financing activities (excluding dividends) (253) (1,048) +75.8
Decrease in cash and cash equivalents (201) (503) +60.1
Cash flow from operating activities total capacity of Holcim Brazil to 7.7 million tonnes. With this
In 2014, cash flow from operating activities retracted by CHF investment, the Group company will be better positioned to
289 million or 10.3 percent to CHF 2,498 million. At constant meet the long term growing demand for building materials in
scope and exchange rates, the cash flow from operating activi- the south-east of the country.
ties decreased by CHF 179 million or 6.4 percent. This setback
was mainly the consequence of a lower operating EBITDA, Ecuador – clinker capacity expansion at Guayaquil
impacted by restructuring and merger cash costs and higher Following the timely commissioning of the new cement mill in
net working capital. In the year under review, the cash flow the second half of 2011, Holcim Ecuador began the second
margin was 13.0 percent (2013: 14.1). phase of the cement plant modernization in Guayaquil in
December 2012, which will increase clinker capacity by 1.4 mil-
Investment activities lion tonnes in May 2015 when the project will be commis-
The cash flow from investing activities increased by CHF 59 sioned. This investment will balance local clinker production
million to CHF 1,724 million. The net capital expenditure to capacity with local cement capacity in order to eliminate costly
maintain productive capacity and to secure competitiveness clinker imports, reduce logistics-related risks, increase local
amounted to CHF 738 million, while investments in expansion value creation and reduce the CO2 footprint. With this invest-
and diversification projects reached CHF 1,020 million. Pro- ment, Holcim Ecuador will be better positioned to further
ceeds from sale of Property Plant and Equipment amounted to leverage its strong brand presence, meet its customer’s needs
CHF 209 million (2013: 205). Investments in property, plant and and substitute imports.
equipment for expansion mainly reflect key projects, the objec-
tive of which was to increase cement capacity in emerging India – expansion of market position
countries such as Brazil, Indonesia, Ecuador and India, as well The ongoing construction of a new cement plant at Jamul in
as in some mature countries such as Holcim Australia. India is progressing as per the plans. The production unit with
a capacity of 2.8 million tonnes of clinker at Jamul is expected
The net financial divestments consisted mainly of the sale of to commence operations by mid-2015. The satellite grinding
subsidiaries. units with a capacity of 2.5 million tonnes per annum at Jamul
and Sindri are expected to go on stream by the end of 2015. The
Key investment projects two additional proposed grinding units in the eastern region
Indonesia – capacity expansion at Tuban and new Cement have been temporarily put on hold due to change in market
Terminal at Lampung in South Sumatra conditions.
In order to meet rising demand, Holcim is building a new inte-
grated cement plant in Tuban, East Java, with two production Australia – expansion of aggregates capacity
lines of 1.6 million tonnes each. The cement mill of the first line In 2011, Holcim began work in the south-west of Sydney on
was put into commercial operation in December 2013 and the what will become the company’s largest project in the field of
kiln followed in September 2014. The second line will be fully aggregates. Known as Lynwood Quarry, the site will supply
operational in the second quarter of 2015. aggregates to one of Australia’s largest markets. Due to the
possibility of transporting the raw material by rail, the quarry,
Holcim is also building a cement terminal and packing plant together with the distribution center in West Sydney, will offer
near Lampung, South Sumatra. This terminal is expected to be one of the most cost-effective and sustainable solutions of this
in operation in the first quarter of 2016. Holcim already has a kind. The plant is due to be commissioned in May 2015. The site
strong position in the regional market of Southern Sumatra is expected to enable Holcim to strengthen its integrated mar-
which is growing faster than the Indonesian average, and this ket position in Sydney and New South Wales.
strengthening of the footprint will allow for an improvement
in customer service and a reduction in logistics costs.
Brazil – capacity expansion at Barroso

In Brazil, a second kiln line is being installed at the Barroso
plant and will be commissioned in the second half of 2015. The
additional cement capacity of 2.3 million tonnes will bring the
Russia – modernization at Volsk plant EUR 500 million Holcim Finance (Luxembourg) S.A. bond with a
Holcim Russia’s modernization strategy continues with the coupon of 3.00%, term 2014–2024
upgrade of its existing wet process Volsk plant in the Volga MXN 2,000 million Holcim Capital México S.A. de C.V. bond with a
region. The modernization of the Volsk plant is divided into floating interest rate, term 2014–2018
two phases: “clinker line” and “cement upgrade”. The main
structural foundations were already completed and the instal- Net financial debt
lation of mechanical equipments is on-going. The project is Net financial debt increased by CHF 183 million to CHF 9,644
generally progressing according to plan with the new clinker million due to an unfavorable currency impact of CHF 250 mil-
line to be commissioned in the second half of 2016. This project lion and a change in consolidation structure impact of CHF 45
will strengthen Holcim Russia’s ability to capture growth and million. On a like-for-like basis, net financial debt decreased by
will improve the long-term cost competitiveness of the Volsk CHF 113 million. At the end of 2014, the ratio of net financial
plant. debt to shareholders’ equity (gearing) was 48.0 percent (2013:
50.7). Gearing declined as a result of the higher shareholders’
Group ROICBT equity. The Group’s financial structure remained solid and
The Group’s return on invested capital before tax (ROICBT ) mea- allows sufficient flexibility to capture new opportunities.
sures the profitability of the capital employed. It is regarded as
a measure of operating profitability and is calculated by
expressing EBIT (earnings before interest and taxes) as a per- 2014 (CHF 8,862 million)
centage of the average invested capital (excluding cash and
marketable securities). EUR commercial paper, THB bond
CRC bonds, CAD private placements,
INR private placements <1%
Group ROICBT Industrial revenue bonds 1%
Million CHF MAD bond 2%

CAD bond 3%
EBIT1 Invested capital ROICBT in %
U.S. private placements 4%
Current Previous Average
year year
MXN bonds 5%
2014 2,723 31,089 29,736 30,412 9.0
U.S. commercial
2013 2,785 29,736 31,458 30,597 9.1 paper notes 3%
CHF bonds
1 Earnings before interest and taxes. AUD bonds 31%
6%
In 2014, the ROICBT slightly decreased from 9.1 percent to 9.0

GBP bonds
percent, a development primarily due to an increase in the 8%
average Group invested capital. After adjusting for restructur-

EUR bonds USD bonds
ing and merger costs, the ROICBT increased to 9.4 percent. 27%
9%
Financing activity
Holcim’s investments were funded from the cash flow from
operating activities. New debt capital issuances were mainly Financing profile
conducted to refinance existing borrowings. In the year under Holcim was able to further strengthen its financial profile. 75
review, capital market transactions of CHF 0.7 billion were percent of the financial liabilities are financed through various
undertaken by Holcim, enabling the Group to lock in histori- capital markets (see overview of all outstanding bonds and pri-
cally low interest rates and to extend the average maturity of vate placements on pages 199 and 200) and 25 percent through
financial liabilities. The main capital market transactions were banks and other lenders. There are no major positions with
as follows: individual lenders. With 5.2 years, the average maturity of
financial liabilities was successfully extended in comparison to
the previous year (2013: 5.0). The Group’s maturity profile is
widely spread with a large proportion of mid to long-term
financing.
Maintaining a favorable credit rating is one of the Group’s unutilized committed credit lines of CHF 3,820 million (2013:
objectives and Holcim therefore gives priority to achieving its 4,967). Existing borrowings as at December 31, 2014, of CHF
financial targets and retaining its investment-grade rating. 1,947 million (2013: 2,521) maturing in the next 12 months are
Detailed information on the credit ratings can be found on comfortably covered by existing cash, cash equivalents and
pages 66 and 170 of this Annual Report. The ratio of funds from unutilized committed credit lines. Holcim has a U.S. commer-
operations to net financial debt declined by 1.7 percentage cial paper program as well as a EUR commercial paper program.
points to 31.7 percent (Holcim target: >25 percent), and the ratio The aim of these programs is to fund short-term liquidity needs
of net financial debt to EBITDA slightly deteriorated to 2.3x at attractive terms. Notes in the amount of USD 241 million
(Holcim target: <2.8x). The EBITDA net interest coverage (2013: 448) and EUR 28 million (2013: 0) were outstanding as per
reached 8.6x (Holcim target: >5x), and the EBIT net interest December 31, 2014.
coverage 5.7x (Holcim target: >3x). The average nominal inter-
est rate on Holcim’s financial liabilities as at December 31, 2014, Currency sensitivity
was 4.2 percent (2013: 4.6), whereas the proportion of fixed- The Group operates in around 70 countries, generating the
rate debt stood at 58 percent (2013: 56). majority of its results in currencies other than the Swiss franc.
Only about 4 percent of net sales are generated in Swiss francs.
20141 Foreign-currency volatility has little effect on the Group’s oper-

ating profitability. As the Group produces a very high propor-
tion of its products locally, most sales and costs are incurred in
the respective local currencies. The effects of foreign exchange
movements are therefore largely restricted to the translation
of local financial statements for the consolidated statement of
income. In the last financial year, these were, on balance, nega-
tive. As a large part of the foreign capital is financed with
matching currencies in local currency, the effects of the foreign
currency translation of local balance sheets for the consoli-
dated statement of financial position have not, in general,
resulted in significant distortions in the consolidated state-
ment of financial position.
Bonds, private placements and commercial paper notes
Liquidity
To secure liquidity, the Group held cash and cash equivalents of
CHF 2,149 million at December 31, 2014 (2013: 2,244). Most of
this cash is invested in term deposits held with a large number
of banks on a broadly diversified basis. The counterparty risk is
constantly monitored on the basis of clearly defined principles
as part of the risk management process. As of December 31,
2014, Holcim also had unused credit lines amounting to CHF
7,105 million (2013: 7,990) (see also page 197). This includes
1 After risk-related adjustment of CHF 555 million from current financial

liabilities to long-term financial liabilities.
The following sensitivity analysis presents the effect of the The following table shows the effects of a hypothetical 5 per-
main currencies on selected key figures of the consolidated cent depreciation of the respective foreign currencies versus
financial statements. The sensitivity analysis only factors in the Swiss franc.
effects that result from the conversion of local financial state-
ments into Swiss francs (translation effect). Currency effects
from transactions conducted locally in foreign currencies are
not included in the analysis. Given the local nature of business
activities, this type of transaction is seldom individually
hedged.
Sensitivity analysis
Million CHF 2014 EUR GBP USD Latin INR Asian
American basket
basket (AUD, IDR,
(MXN, BRL, PHP)
ARS, CLP)
Actual figures Assuming a 5% strengthening of the Swiss franc the impact would be as follows:
Net sales 19,110 (120) (96) (163) (93) (160) (156)
Operating profit 2,317 (3) (6) (26) (11) (19) (24)
Net income 1,619 (47) (6) (31) 3 (21) (14)
Cash flow
from operating activities 2,498 (48) (10) (44) 1 (29) (16)
Net financial debt 9,644 (55) (35) (155) (50) 42 (54)
F I N A N C I A L I N F O R M A T I O N C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 149
C O N S O L I D AT E D
FINANCIAL
S TA T E M E N T S
150 F I N A N C I A L I N F O R M A T I O N C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S
Consolidated statement of income of Group Holcim

Million CHF Notes 2014 2013
Net sales 5, 6 19,110 19,719
Production cost of goods sold 7 (10,548) (11,087)
Gross profit 8,562 8,632
Distribution and selling expenses 8 (4,924) (5,021)
Administration expenses (1,321) (1,254)
Operating profit 2,317 2,357
Other income 11 179 204
Share of profit of associates and joint ventures 23 140 161
Financial income 12 183 183
Financial expenses 13 (611) (777)
Net income before taxes 2,207 2,128
Income taxes 14 (588) (533)
Net income 1,619 1,596
Attributable to:
Shareholders of Holcim Ltd 1,287 1,272
Non-controlling interest 332 324
Earnings per share in CHF

Earnings per share 16 3.95 3.91
Fully diluted earnings per share 16 3.95 3.91
Consolidated statement of comprehensive earnings of Group Holcim

Other comprehensive earnings
Items that will be reclassified to the statement of income in future periods

Currency translation effects
– Exchange differences on translation 686 (1,608)
– Realized through statement of income 0 8
– Tax effect 40 14
Available-for-sale financial assets
– Change in fair value (2) (14)
– Realized through statement of income 20 (63) (65)
– Tax effect (1) 0
Cash flow hedges
– Change in fair value (1) 5
– Tax effect 0 (1)
Net investment hedges in subsidiaries
– Change in fair value 0 3
– Tax effect 0 0
Subtotal 660 (1,657)
Items that will not be reclassified to the statement of income in future periods
Defined benefit plans
– Remeasurements 32 (200) 217
– Tax effect 42 (48)
Subtotal (157) 169
Total other comprehensive earnings 503 (1,488)
Total comprehensive earnings 2,122 108
Attributable to:
Shareholders of Holcim Ltd 1,615 86
Non-controlling interest 507 22
Consolidated statement of financial position of Group Holcim

Million CHF Notes 31.12.2014 31.12.2013
Cash and cash equivalents 17 2,149 2,244
Accounts receivable 18 2,695 2,521
Inventories 19 1,863 1,704
Prepaid expenses and other current assets 20 317 365
Assets classified as held for sale 21 283 756
Total current assets 7,307 7,590
Long-term financial assets 22 491 536

Investments in associates and joint ventures 23 1,758 1,562
Property, plant and equipment 24 21,410 20,029
Intangible assets 25 7,779 7,486
Deferred tax assets 30 527 391
Other long-term assets 412 351
Total long-term assets 32,378 30,355
Total assets 39,684 37,944
Trade accounts payable 26 2,101 1,934

Current financial liabilities 27 2,502 2,920
Current income tax liabilities 419 462
Other current liabilities 1,634 1,708
Short-term provisions 31 234 224
Liabilities directly associated with assets classified as held for sale 21 33 213
Total current liabilities 6,923 7,461
Long-term financial liabilities 27 9,291 8,785

Defined benefit obligations 32 863 655
Deferred tax liabilities 30 1,415 1,290
Long-term provisions 31 1,080 1,077
Total long-term liabilities 12,649 11,807
Total liabilities 19,572 19,267
Share capital 35 654 654

Capital surplus 7,776 8,200
Treasury shares 35 (82) (102)
Reserves 9,082 7,453
Total equity attributable to shareholders of Holcim Ltd 17,430 16,205
Non-controlling interest 36 2,682 2,471
Total shareholders' equity 20,112 18,677
Total liabilities and shareholders' equity 39,684 37,944

Consolidated statement of changes in equity of Group Holcim

Million CHF Share Capital Treasury Retained
capital surplus shares earnings
Equity as at January 1, 2014 654 8,200 (102) 17,294

Net income 1,287
Other comprehensive earnings (157)
Total comprehensive earnings 1,130
Payout (424)
Change in treasury shares 13 (1)
Share-based remuneration 0 7
Capital paid-in by non-controlling interest
Change in participation in existing Group companies 15
Equity as at December 31, 2014 654 7,776 (82) 18,438
Equity as at January 1, 2013 654 8,573 (114) 15,808

Net income 1,272
Other comprehensive earnings 169
Total comprehensive earnings 1,442
Payout (374)
Change in treasury shares 1 (1)
Share-based remuneration 2 12
Capital paid-in by non-controlling interest
Disposal of participation in Group companies
Change in participation in existing Group companies 44
Equity as at December 31, 2013 654 8,200 (102) 17,294
1 Currency translation adjustments include CHF -22 million relating to assets and directly associated liabilities classified as held for sale, see note 21.
Available-for-sale Cash flow Currency Total Total equity Non-controlling Total

reserve hedging translation reserves attributable to interest shareholders'
reserve adjustments shareholders equity
of Holcim Ltd
52 (4) (9,889) 7,453 16,205 2,471 18,677
1,287 1,287 332 1,619
(65) (1) 551 328 328 175 503
(65) (1) 551 1,615 1,615 507 2,122
(424) (301) (725)
(1) 12 12
7 0 7
6 6
15 15 (2) 13
(13) (5) (9,338) 1 9,082 17,430 2,682 20,112
132 (7) (8,608) 7,324 16,437 2,797 19,234

1,272 1,272 324 1,596
(79) 4 (1,281) (1,186) (1,186) (302) (1,488)
(79) 4 (1,281) 86 86 22 108
(374) (199) (573)
0 (1) 0 0
0 0 13 13
6 6
(109) (109)
44 44 (46) (1)
52 (4) (9,889) 7,453 16,206 2,471 18,678
Consolidated statement of cash flows of Group Holcim

Other income 11 (179) (204)
Share of profit of associates and joint ventures 23 (140) (161)
Financial expenses net 12, 13 429 594
Depreciation, amortization and impairment of operating assets 9 1,430 1,538
Other non-cash items 217 178
Change in net working capital (393) (217)
Cash generated from operations 3,571 3,857
Dividends received 73 137
Interest received 124 145
Interest paid (582) (652)
Income taxes paid (679) (659)
Other expenses (8) (42)
Cash flow from operating activities (A) 2,498 2,787
Purchase of property, plant and equipment (1,968) (2,205)

Disposal of property, plant and equipment 209 205
Acquisition of participation in Group companies (2) (8)
Disposal of participation in Group companies 36 407
Purchase of financial assets, intangible and other assets (300) (263)
Disposal of financial assets, intangible and other assets 300 199
Cash flow from investing activities (B) 39 (1,724) (1,665)
Payout on ordinary shares 16 (424) (374)

Dividends paid to non-controlling interest (297) (202)
Capital paid-in by non-controlling interest 6 6
Movement of treasury shares 35 11 0
Proceeds from current financial liabilities 3,833 6,252
Repayment of current financial liabilities (3,506) (6,465)
Proceeds from long-term financial liabilities 2,849 2,635
Repayment of long-term financial liabilities (3,453) (3,471)
Increase in participation in existing Group companies (3) (5)
Decrease in participation in existing Group companies 10 0
Cash flow from financing activities (C) (975) (1,625)
Decrease in cash and cash equivalents (A + B + C) (201) (503)
Cash and cash equivalents as at January 1 (net) 17 1,993 2,711

Decrease in cash and cash equivalents (201) (503)
Currency translation effects 150 (215)
Cash and cash equivalents as at December 31 (net) 17 1,942 1,993
Accounting policies
Basis of preparation In 2016, Group Holcim will adopt the following amended stan-
The consolidated financial statements have been prepared in dards relevant to the Group:
accordance with International Financial Reporting Standards
(IFRS). Amendments to Disclosure Initiative
IAS 1
Due to rounding, numbers presented throughout this report Amendments to Sale or Contribution of Assets between an
may not add up precisely to the totals provided. All ratios and IFRS 10 and IAS 28 Investor and its Associate or Joint Venture
variances are calculated using the underlying amount rather Amendments to Accounting for Acquisitions of Interests
than the presented rounded amount. IFRS 11 in Joint Operations
Amendments to Clarification of Acceptable Methods
Adoption of revised and new International Financial Reporting IAS 16 and IAS 38 of Depreciation and Amortization
Standards and interpretations Improvements to Clarifications of existing IFRSs
In 2014, Group Holcim adopted no new or revised standards or IFRSs (issued in September 2014)
interpretations relevant to the Group.
The amendments to IAS 1 Presentation of Financial Statements
In 2015, Group Holcim will adopt the following amended stan- largely clarify a number of presentation issues and highlight
dard relevant to the Group: that preparers are permitted to tailor the format and presenta-
tion of the financial statements to their circumstances. The
IAS 19 (amended) Employee Benefits adoption of this amendment will not materially impact the
Improvements to IFRSs Clarifications of existing IFRSs presentation of the Group’s financial statements.
(issued in December 2013)
The amendments to IFRS 10 Consolidated Financial Statements
The amendment to IAS 19 relating to defined benefit plans and IAS 28 Investments in Associates and Joint Ventures
clarifies how employee contributions which are linked to ser- require a full gain to be recognized when the assets transferred
vice should be attributed to the periods of service. For contri- to an associate or joint venture meet the definition of a busi-
butions that are independent of the number of years of service, ness under IFRS 3 Business Combinations whereas a gain is only
the amendment permits a company to reduce service cost recognized to the extent of the unrelated investor’s interest in
either (a) by attributing them to periods of service or (b) by that associate or joint venture when the assets transferred do
reducing service costs in the period in which the related service not meet the definition of a business under IFRS 3. The adop-
is rendered. Since Group Holcim already applied the option (a) tion of this amendment will not materially impact the Group’s
above, the amendment to IAS 19 will therefore not impact the financial statements.
consolidated financial statements.
The amendments to IFRS 11 Joint Arrangements require busi-
The improvements to IFRSs relate largely to clarification issues ness combination accounting according to IFRS 3 Business
only. Therefore, the adoption of these amendments will not Combinations to be applied to an acquisition of an interest in a
materially impact the Group’s financial statements. joint operation that constitutes a business. The adoption of
this amendment will not materially impact the Group’s finan-
cial statements.
The amendments to IAS 16 Property, Plant and Equipment and

IAS 38 Intangible Assets clarify that revenue-based amortiza-
tion is generally inappropriate. The adoption of this amend-
ment will not impact the Group’s financial statements.
The improvements to IFRSs relate largely to clarification issues

only. Therefore, the adoption of these amendments will not
materially impact the Group’s financial statements.
In 2017, Group Holcim will adopt the following new standard The Group makes estimates and assumptions concerning the
relevant to the Group: future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and
IFRS 15 Revenue from Contracts with Customers assumptions that may have a significant risk of causing a mate-
rial adjustment to the carrying amounts of assets and liabilities
In May 2014, the IASB issued IFRS 15 Revenue from Contracts within the next financial year relate primarily to goodwill, and
with Customers, which replaces IAS 11 Construction Contracts, to a lesser extent, defined benefit obligations, deferred tax
IAS 18 Revenue and related Interpretations. The Group is in the assets, site restoration and other long-term provisions, depreci-
process of evaluating the impact IFRS 15 may have on its con- ation of property, plant and equipment and the disclosure of
solidated financial statements. contingent liabilities at the end of the reporting period. The
cost of defined benefit pension plans and other post-employ-
In 2018, Group Holcim will adopt the following new standard ment benefits is determined using actuarial valuations. The
relevant to the Group: actuarial valuation involves making assumptions about dis-
count rates, future salary increases, mortality rates and future
IFRS 9 Financial Instruments pension increases. Due to the long-term nature of these plans,
such estimates are subject to significant uncertainty (note 32).
In July 2014, the IASB issued IFRS 9 Financial Instruments which
replaces IAS 39 Financial Instruments: Recognition and Mea- The Group tests annually whether goodwill has suffered any
surement and that will change the classification and measure- impairment in accordance with its accounting policy. The
ment requirements of financial assets and financial liabilities recoverable amounts of cash generating units have been deter-
and the general hedge accounting rules. The Group is in the mined based on value-in-use calculations. These calculations
process of evaluating the impact IFRS 9 may have on its consol- require the use of estimates (note 25).
idated financial statements.
All estimates mentioned above are further detailed in the cor-
Use of estimates responding disclosures.
The preparation of financial statements in conformity with
IFRS requires management to make estimates and assumptions Scope of consolidation
that affect the reported amounts of revenues, expenses, The consolidated financial statements comprise those of
assets, liabilities and related disclosures at the date of the Holcim Ltd and of its subsidiaries, including interests in joint
financial statements. These estimates are based on manage- operations. The list of principal companies is presented in the
ment’s best knowledge of current events and actions that the section “Principal companies of the Holcim Group”.
Group may undertake in the future. However, actual results
could differ from those estimates.
Critical estimates and assumptions

Estimates and judgments are continually evaluated and are
based on historical experience and other factors, including
expectations of future events that are believed to be reason-
able under the circumstances.
Principles of consolidation All intercompany transactions and balances between Group

Subsidiaries, which are those entities in which the Group has companies are eliminated in full.
an interest of more than one half of the voting rights or other-
wise is able to exercise control over the operations, are consoli- Changes in the ownership interest of a subsidiary that do not
dated. The Group controls an entity when it is exposed to, or result in loss of control are accounted for as an equity transac-
has rights to, variable returns from its involvement with the tion. Consequently, if Holcim acquires or partially disposes of a
entity and has the ability to affect those returns through its non-controlling interest in a subsidiary, without losing control,
power over the entity. Business combinations are accounted for any difference between the amount by which the non-control-
using the acquisition method. The cost of an acquisition is ling interest is adjusted and the fair value of the consideration
measured at the fair value of the consideration given at the paid or received is recognized directly in retained earnings.
date of exchange. For each business combination, the Group
measures the non-controlling interest in the acquiree either at It is common practice for the Group to write put options and
fair value or at the proportionate share of the acquiree’s identi- acquire call options in connection with the remaining shares
fiable net assets. Acquisition costs incurred are expensed in the held by the non-controlling shareholders mainly as part of a
statement of income. Identifiable assets acquired and liabilities business combination. If the Group has acquired a present
assumed in a business combination are measured initially at ownership interest as part of a business combination, the pres-
fair value at the date of acquisition. ent value of the redemption amount of the put option is recog-
nized as a financial liability with any excess over the carrying
When Group Holcim acquires a business, it assesses the finan- amount of the non-controlling interest recognized as goodwill.
cial assets and liabilities assumed for appropriate classification In such a case, the non-controlling interest is deemed to have
and designation in accordance with the contractual terms, eco- been acquired at the acquisition date and therefore any excess
nomic circumstances and pertinent conditions as of the acqui- arising should follow the accounting treatment as in a business
sition date. combination. All subsequent fair value changes of the financial
liability are recognized in profit or loss and no earnings are
If the business combination is achieved in stages, the carrying attributed to the non-controlling interest. However, where the
amount of Group Holcim’s previously held equity interest in Group has not acquired a present ownership interest as part of
the acquiree is remeasured to fair value as at the acquisition a business combination, the non-controlling interest continues
date through profit or loss. to receive an allocation of profit or loss and is reclassified as a
financial liability at each reporting date as if the acquisition
Any contingent consideration to be transferred by the Group is took place at that date. Any excess over the reclassified carry-
recognized at fair value at the acquisition date. Subsequent ing amount of the non-controlling interest and all subsequent
changes to the fair value of the contingent consideration are fair value changes of the financial liability are recognized
recognized in profit or loss. directly in retained earnings.
Subsidiaries are consolidated from the date on which control is

transferred to the Group and are no longer consolidated from
the date that control ceases.
Interests in joint arrangements are interests over which the Foreign currency translation
Group exercises joint control and are classified as either joint The assets and liabilities of each of the Group’s companies are
operations or joint ventures depending on the contractual measured using the currency of the primary economic environ-
rights and obligations arising from the agreement rather than ment in which the entity operates (“the functional currency”).
the legal structure of the joint arrangement. If the interest is Statements of income of foreign entities are translated into the
classified as a joint operation, the Group recognizes its share of Group’s reporting currency at average exchange rates for the
the assets, liabilities, revenues and expenses in the joint opera- year and statements of financial position are translated at the
tion in accordance with the relevant IFRSs. All transactions and exchange rates prevailing on December 31.
balances between the Group and the joint operation are elimi-
nated to the extent of the Group’s interest in the joint opera- Goodwill arising from the acquisition of a foreign operation is
tion. When such transactions provide evidence of a reduction expressed in the functional currency of the foreign operation
in the net realizable value of the assets to be sold or contrib- and is translated at the closing rate.
uted to the joint operation, or of an impairment loss of those
assets, those losses are fully recognized. Foreign currency transactions translated into the functional
currency are accounted for at the exchange rates prevailing at
Associates are companies in which the Group generally holds the date of the transactions; gains and losses resulting from
between 20 and 50 percent of the voting rights and over which the settlement of such transactions and from the translation
the Group has significant influence but does not exercise con- of monetary assets and liabilities denominated in foreign cur-
trol. rencies are recognized in the statement of income, except
when deferred outside the statement of income as qualifying
Investments in associated companies and joint ventures are cash flow hedges or net investment hedges.
accounted for using the equity method of accounting.
Exchange differences arising on monetary items that form part
Goodwill arising from the acquisition is included in the carrying of a company’s net investment in a foreign operation are
amount of the investment in associated companies and joint reclassified to equity (currency translation adjustment) in the
ventures. Equity accounting is discontinued when the carrying consolidated financial statements and are fully reclassified to
amount of the investment together with any long-term inter- the statement of income should Group Holcim lose control of a
est in an associated company or joint venture reaches zero, subsidiary, lose joint control over an interest in a joint arrange-
unless the Group has also either incurred or guaranteed addi- ment or lose significant influence in an associate. When a for-
tional obligations in respect of the associated company or joint eign operation is partially disposed of or sold, exchange differ-
venture. ences that were recorded in equity are recognized in the
statement of income as part of the net gain or loss on sale,
except for a partial disposal of a subsidiary without loss of con-
trol.
Segment information Accounts receivable

For management purposes, the Group is organized by geo- Trade accounts receivable are carried at the original invoice
graphical areas and has five reportable segments based on the amount less an estimate made for doubtful debts based on a
location of assets as follows: review of all outstanding amounts of the financial asset at the
year end.
Asia Pacific
Latin America Inventories
Europe Inventories are stated at the lower of cost and net realizable
North America value. Cost is determined by using the weighted average cost
Africa Middle East method. The cost of finished goods and work in progress com-
prises raw materials and additives, direct labor, other direct
Each of the above reportable segments derives its revenues costs and related production overheads. Cost of inventories
from the sale of cement, aggregates and other construction includes transfers from equity of gains or losses on qualifying
materials and services. cash flow hedges relating to inventory purchases.
The Group has three product lines: Long-term financial assets

Long-term financial assets consist of (a) financial investments –
Cement, which comprises clinker, cement and other cementi- third parties, (b) long-term receivables – associates and joint
tious materials ventures, (c) long-term receivables – third parties, and (d) deriv-
Aggregates ative assets. Financial investments in third parties are classified
Other construction materials and services, which comprises as available-for-sale and long-term receivables from associates,
ready-mix concrete, concrete products, asphalt, construction joint ventures and third parties are classified as loans and
and paving, trading and other products and services receivables. Derivative assets are regarded as held for hedging
unless they do not meet the strict hedging criteria under IAS 39
Group financing (including financing costs and financing Financial Instruments: Recognition and Measurement, in which
income) and income taxes are managed on a Group basis and case they will be classified as held for trading.
are not allocated to any reportable segments.
Transfer prices between segments are set on an arms-length

basis in a manner similar to transactions with third parties.
Segment revenue and segment result include transfers
between segments. Those transfers are eliminated on consoli-
dation.
Cash and cash equivalents

Cash and cash equivalents are financial assets. Cash equiva-
lents are readily convertible into a known amount of cash with
original maturities of three months or less. For the purpose of
the statement of cash flows, cash and cash equivalents com-
prise cash at banks and in hand, deposits held on call with
banks and other short-term, highly liquid investments, net of
bank overdrafts.
All purchases and sales of long-term financial assets are recog- Mineral reserves, which are included in the class “land” of
nized on trade date, which is the date that the Group commits property, plant and equipment, are valued at cost and are
to purchase or sell the asset. The purchase cost includes trans- depreciated based on the unit-of-production method over their
action costs, except for derivative instruments. Loans and estimated commercial lives.
receivables are measured at amortized cost using the effective
interest method. Available-for-sale investments are carried at Costs incurred to gain access to mineral reserves are capital-
fair value. Gains and losses arising from changes in the fair ized and depreciated over the life of the quarry, which is based
value of available-for-sale investments are included in other on the estimated tonnes of raw material to be extracted from
comprehensive earnings until the financial asset is either the reserves.
impaired or disposed of, at which time the cumulative gain or
loss previously recognized in other comprehensive earnings is Interest costs on borrowings to finance construction projects,
reclassified from equity to the statement of income. which necessarily take a substantial period of time to get ready
for their intended use, are capitalized during the period of time
Property, plant and equipment that is required to complete and prepare the asset for its
Property, plant and equipment is valued at acquisition or con- intended use. All other borrowing costs are expensed in the
struction cost less depreciation and impairment loss. Cost period in which they are incurred.
includes transfers from equity of any gains or losses on qualify-
ing cash flow hedges. Depreciation is charged so as to write off Government grants received are deducted from property, plant
the cost of property, plant and equipment over their estimated and equipment and reduce the depreciation charge accord-
useful lives, using the straight-line method, on the following ingly.
bases:
Leases of property, plant and equipment where the Group has
Land No depreciation except on land substantially all the risks and rewards of ownership are classi-
with raw material reserves fied as finance leases. Property, plant and equipment acquired
Buildings and installations 20 to 40 years through a finance lease is capitalized at the date of the com-
Machinery 10 to 30 years mencement of the lease term at the present value of the mini-
Furniture, vehicles and tools 3 to 10 years mum future lease payments or, if lower, at an amount equal to
the fair value of the leased asset as determined at the incep-
Costs are only included in the asset’s carrying amount when it tion of the lease. The corresponding lease obligations, exclud-
is probable that economic benefits associated with the item ing finance charges, are included in either current or long-term
will flow to the Group in future periods and the cost of the financial liabilities.
item can be measured reliably. Costs include the initial esti-
mate of the costs for dismantling and removing the item and For sale-and-lease-back transactions, the book value of the
for restoring the site on which it is located. All other repairs related property, plant or equipment remains unchanged. Pro-
and maintenance expenses are charged to the statement of ceeds from a sale are included as a financing liability and the
income during the period in which they are incurred. financing costs are allocated over the term of the lease in such
a manner that the costs are reported over the relevant periods.
Non-current assets (or disposal groups) classified as held for Other intangible assets
sale Expenditure on acquired patents, trademarks, licenses and
Non-current assets (or disposal groups) are classified as held other intangible assets is capitalized and amortized using the
for sale and stated at the lower of carrying amount and fair straight-line method over their estimated useful lives, but not
value less costs to sell if their carrying amount is to be recov- exceeding 20 years.
ered principally through a sale transaction rather than through
continuing use. Impairment of non-financial assets
At each reporting date, the Group assesses whether there is
Goodwill any indication that a non-financial asset may be impaired. If
Goodwill represents the excess of the aggregate of the consid- any such indication exists, the recoverable amount of the non-
eration transferred and the amount recognized for the non- financial asset is estimated in order to determine the extent of
controlling interest over the fair value of the net identifiable the impairment loss, if any. Where it is not possible to estimate
assets acquired and liabilities assumed. Goodwill on acquisi- the recoverable amount of an individual non-financial asset,
tions of subsidiaries and interests in joint operations is the Group estimates the recoverable amount of the smallest
included in intangible assets. Such goodwill is tested annually cash generating unit to which the non-financial asset belongs.
for impairment or whenever there are impairment indicators, The recoverable amount is the higher of an asset’s or cash gen-
and is carried at cost less accumulated impairment losses. erating unit’s fair value less costs of disposal and its value in
Goodwill on acquisitions of associates and joint ventures is use. If the recoverable amount of a non-financial asset or cash
included in the carrying amount of the respective investments. generating unit is estimated to be less than its carrying
If the consideration transferred is less than the fair value of the amount, the carrying amount of the non-financial asset or cash
net assets of the subsidiary acquired, the difference is recog- generating unit is reduced to its recoverable amount. Impair-
nized directly in the statement of income. ment losses are recognized immediately in the statement of
income.
On disposal of a subsidiary or joint operation the related good-
will is included in the determination of profit or loss on dis- Where an impairment loss subsequently reverses, the carrying
posal. amount of the non-financial asset or cash generating unit is
increased to the revised estimate of its recoverable amount.
Goodwill on acquisitions of subsidiaries and interests in joint However, this increased amount cannot exceed the carrying
operations is allocated to cash generating units for the purpose amount that would have been determined had no impairment
of impairment testing (note 25). Impairment losses relating to loss been recognized for that non-financial asset or cash gener-
goodwill cannot be reversed in future periods. ating unit in prior periods. A reversal of an impairment loss is
recognized immediately in the statement of income.
Impairment of financial assets Long-term financial liabilities

At each reporting date, the Group assesses whether there is Bank loans acquired and non-convertible bonds issued are rec-
any indication that a financial asset may be impaired. An ognized initially at the proceeds received, net of transaction
impairment loss in respect of a financial asset measured at costs incurred. Subsequently, bank loans and non-convertible
amortized cost is calculated as the difference between its car- bonds are stated at amortized cost, using the effective interest
rying amount and the present value of the future estimated method, with any difference between proceeds (net of transac-
cash flows discounted at the original effective interest rate. tion costs) and the redemption value being recognized in the
The carrying amount of the asset is reduced through the use of statement of income over the term of the borrowings.
an allowance account. The amount of the loss is recognized in
profit or loss. Upon issuance of convertible bonds, the fair value of the liabil-
ity portion is determined using a market interest rate for an
If, in a subsequent period, the amount of the impairment loss equivalent non-convertible bond; this amount is carried as a
decreases and the decrease can be related objectively to an long-term liability on the amortized cost basis using the effec-
event occurring after the impairment was recognized, the pre- tive interest method until extinguishment on conversion or
viously recognized impairment loss is reversed, to the extent maturity of the bonds. The remainder of the proceeds is allo-
that the carrying value of the asset does not exceed its amor- cated to the conversion option, which is recognized and
tized cost at the reversal date. Any reversal of an impairment included in shareholders’ equity; the value of the conversion
loss is recognized in profit or loss. option is not remeasured in subsequent periods.
An impairment loss in respect of an available-for-sale financial Long-term derivative liabilities are regarded as held for hedg-
asset is recognized in the statement of income and is calcu- ing unless they do not meet the strict hedging criteria stipu-
lated by reference to its fair value. Individually significant lated under IAS 39 Financial Instruments: Recognition and Mea-
financial assets are tested for impairment on an individual surement, in which case they will be classified as held for
basis. Reversals of impairment losses on equity instruments trading.
classified as available-for-sale are recognized in other compre-
hensive earnings, while reversals of impairment losses on debt Financial liabilities that are due within 12 months after the end
instruments are recognized in profit or loss if the increase in of the reporting period are classified as current liabilities
fair value of the instrument can be objectively related to an unless the Group has an unconditional right to defer settle-
event occurring after the impairment loss was recognized in ment of the liability until more than 12 months after the
the statement of income. reporting period.
In relation to accounts receivable, a provision for impairment is

made when there is objective evidence (such as the probability
of insolvency or significant financial difficulties of the debtor)
that the Group will not be able to collect all of the amounts
due under the original terms of the invoice. The carrying
amount of the receivable is reduced through use of an allow-
ance account. Impaired receivables are derecognized when
they are assessed as uncollectable.
Deferred taxes Emission rights

Deferred tax is provided, using the balance sheet liability The initial allocation of emission rights granted is recognized
method, on temporary differences arising between the tax at nominal amount (nil value). Where a Group company has
bases of assets and liabilities and their carrying amounts in the emissions in excess of the emission rights granted, it will rec-
financial statements. Tax rates enacted or substantively ognize a provision for the shortfall based on the market price
enacted by the end of the reporting period are used to deter- at that date. The emission rights are held for compliance pur-
mine the deferred tax expense. poses only and therefore the Group does not intend to specu-
late with these in the open market.
Deferred tax assets are recognized to the extent that it is prob-
able that future taxable profit will be available against which Other provisions
temporary differences or unused tax losses can be utilized. A provision is recognized when there exists a legal or construc-
Deferred tax liabilities are recognized for taxable temporary tive obligation arising from past events, it is probable that an
differences arising from investments in subsidiaries, associates outflow of resources embodying economic benefits will be
and interests in joint arrangements except where the Group is required to settle the obligation and a reliable estimate can be
able to control the distribution of earnings from these respec- made of this amount.
tive entities and where dividend payments are not expected to
occur in the foreseeable future. Employee benefits – Defined benefit plans
Some Group companies provide defined benefit pension plans
Deferred tax is charged or credited in the statement of income, for employees. Professionally qualified independent actuaries
except when it relates to items credited or charged outside the value the defined benefit obligations on a regular basis. The
statement of income, in which case the deferred tax is treated obligation and costs of pension benefits are determined using
accordingly. the projected unit credit method. The projected unit credit
method considers each period of service as giving rise to an
Site restoration and other environmental provisions additional unit of benefit entitlement and measures each unit
The Group provides for the costs of restoring a site where a separately to build up the final obligation. Past service costs,
legal or constructive obligation exists. The cost of raising a pro- which comprise plan amendments and curtailments, as well as
vision before exploitation of the raw materials has commenced gains or losses on the settlement of pension benefits are rec-
is included in property, plant and equipment and depreciated ognized immediately when they occur.
over the life of the site. The effect of any adjustments to the
provision due to further environmental damage as a result of Remeasurements, which comprise actuarial gains and losses on
exploitation activities is recorded through operating costs over the pension obligation, the return on plan assets and changes
the life of the site, in order to reflect the best estimate of the in the effect of the asset ceiling excluding amounts included in
expenditure required to settle the obligation at the end of the net interest, are recognized directly in other comprehensive
reporting period. Changes in the measurement of a provision earnings and are not reclassified to profit or loss in a subse-
that result from changes in the estimated timing or amount of quent period. The pension obligation is measured at the pres-
cash outflows, or a change in the discount rate, are added to or ent value of estimated future cash flows using a discount rate
deducted from the cost of the related asset to the extent that that is determined by reference to the interest rate on high
they relate to the asset’s installation, construction or acquisi- quality corporate bonds where the currency and terms of the
tion. All provisions are discounted to their present value. corporate bonds are consistent with the currency and esti-
mated terms of the defined benefit obligation.
A net pension asset is recorded only to the extent that it does Revenue recognition
not exceed the present value of any economic benefits avail- Revenue is recognized when it is probable that the economic
able in the form of refunds from the plan or reductions in benefits associated with the transaction will flow to the entity
future contributions to the plan. and the amount of the revenue can be measured reliably. Reve-
nue is measured at the fair value of the consideration received
Employee benefits – Defined contribution plans net of sales taxes and discounts. Revenue from the sale of
In addition to the defined benefit plans described above, some goods is recognized when delivery has taken place and the
Group companies sponsor defined contribution plans based on transfer of risks and rewards of ownership has been completed.
local practices and regulations. The Group’s contributions to The significant risks and rewards of products sold are trans-
defined contribution plans are charged to the statement of ferred according to the specific delivery terms that have been
income in the period to which the contributions relate. formally agreed with the customer, generally upon delivery
when the bill of lading is signed by the customer as evidence
Employee benefits – Other long-term employment benefits that they have accepted the product delivered to them.
Other long-term employment benefits include long-service
leave or sabbatical leave, medical aid, jubilee or other long-ser- Interest is recognized on a time proportion basis that reflects
vice benefits, long-term disability benefits and, if they are not the effective yield on the asset. Dividends are recognized when
expected to be settled wholly within twelve months after the the shareholder’s right to receive payment is established.
year end, profit sharing, variable and deferred compensation.
Certain Group activities are driven by construction contracts.
The measurement of these obligations differs from defined Consequently, contract revenue and contract costs are recog-
benefit plans in that all remeasurements are recognized imme- nized in the statement of income using the percentage of com-
diately in profit or loss and not in other comprehensive earn- pletion method, with the stage of completion being measured
ings. by reference to actual work performed to date.
Employee benefits – Equity compensation plans Contingent liabilities

The Group operates various equity-settled share-based com- Contingent liabilities arise from past events whose existence
pensation plans. The fair value of the employee services will be confirmed only by the occurrence or non-occurrence of
received in exchange for the grant of the options or shares is one or more uncertain future events not wholly within the con-
recognized as an expense. The total amount to be expensed is trol of Holcim. They are accordingly only disclosed in the notes
determined by reference to the fair value of the equity instru- to the financial statements.
ments granted. The amounts are charged to the statement of
income over the relevant vesting periods and adjusted to Financial instruments
reflect actual and expected levels of vesting (note 33). Information on accounting for derivative financial instruments
and hedging activities is included in the section “Risk manage-
ment”.
Risk management
Group risk management Financial risk management within the Group is governed by
Group Risk Management supports the Board of Directors, the policies approved by key management personnel. It provides
Executive Committee and the management teams of the Group principles for overall risk management as well as policies cover-
companies in their strategic decisions. Group Risk Management ing specific areas such as interest rate risk, foreign exchange
aims to systematically recognize major risks the company risk, counterparty risk, use of derivative financial instruments
encounters. All types of risks from industry, operations, finance and the investing of excess cash.
and legal, up to the external business environment are consid-
ered including compliance, sustainable development and repu- Liquidity risk
tational aspects. Risks are understood as the effect of uncer- Group companies need liquidity to meet their obligations. Indi-
tainty on business objectives which can be an opportunity or a vidual companies are responsible for their own cash balances
threat. The risk horizon includes long-term strategic risks but and the raising of internal and external credit lines to cover the
also short- to medium-term business risks. Potential risks are liquidity needs, subject to guidance by the Group.
identified and evaluated at an early stage and monitored.
Countermeasures are proposed and implemented at the appro- The Group monitors its liquidity risk by using a recurring liquid-
priate level so that risk management remains a key responsibility planning tool and maintains cash, unused credit lines and
ity of the line management. Risk transfer through insurance readily realizable marketable securities to meet its liquidity
solutions forms an integral part of Group Risk Management. requirements. In addition, the strong creditworthiness of the
Group allows it to make efficient use of international financial
The Group’s risk profile is established by top-down, bottom-up markets for financing purposes.
and functional risk assessments which are combined to a
Group 360° risk analysis. Besides the Group companies, the In general, the Group does not hold or acquire any shares or
Board of Directors, the Executive Committee and selected Cor- options on shares or other equity products which are not
porate Function Heads are involved in the risk assessment dur- directly related to the business of the Group.
ing the Group’s management cycle. The Executive Committee
reports regularly to the Board of Directors on important risk
findings and provides updates on the measures taken.
Financial risk management

The Group’s activities expose it to a variety of financial risks,
including the effect of changes in debt structure and equity
market prices, foreign currency exchange rates and interest
rates. The Group’s overall risk management focuses on the
unpredictability of financial markets and seeks to minimize
potential adverse effects on the financial performance of the
Group. The Group uses derivative financial instruments such as
foreign exchange contracts and interest rate swaps to hedge
certain exposures. Therefore, the Group does not enter into
derivative or other financial transactions which are unrelated
to its operating business.
Contractual maturity analysis

Million CHF Contractual undiscounted cash flows Carrying
Within Within Within Within Within Thereafter Total amount
1 year 2 years 3 years 4 years 5 years
2014
Trade accounts payable 2,101 2,101 2,101
Loans from financial institutions 1,411 428 643 145 96 98 2,822 2,833
Bonds, private placements and
commercial paper notes 1,128 926 1,313 1,038 1,018 3,416 8,840 8,861
Interest payments 466 425 355 247 191 1,086 2,769
Finance leases 22 18 16 12 12 62 143 96
Derivative financial instruments net 1 (14) (17) (6) (3) (3) 17 (26) (47)
Total 5,114 1,780 2,322 1,440 1,314 4,679 16,650
2013
Trade accounts payable 1,934 1,934 1,934
Loans from financial institutions 797 385 402 112 65 187 1,949 1,952
Bonds, private placements and
commercial paper notes 2,173 765 880 1,293 879 3,658 9,648 9,652
Interest payments 534 390 357 304 217 1,143 2,944
Finance leases 25 20 15 15 14 61 150 101
Derivative financial instruments net1 (24) (19) (21) (17) (4) (63) (149) (101)
Total 5,439 1,540 1,632 1,708 1,171 4,986 16,476
1
All derivative financial instruments are held for hedging. The contractual cash flows include both cash in- and outflows. Additional information is disclosed in
note 29.
The maturity profile is based on contractual undiscounted Market risk

amounts including both interest and principal cash flows and Holcim is exposed to market risk, primarily relating to foreign
based on the earliest date on which Holcim can be required to exchange and interest rate risk. To manage the volatility relat-
pay. ing to these exposures, Holcim enters into a variety of deriva-
tive financial instruments. The Group’s objective is to reduce
Contractual interest cash flows relating to a variable interest fluctuations in earnings and cash flows associated with
rate are calculated based on the rates prevailing as of Decem- changes in foreign exchange and interest rate risk.
ber 31.
Interest rate risk Currency risk

Interest rate risk arises from movements in interest rates The Group operates internationally in around 70 countries and
which could affect the Group’s financial result and market val- is therefore exposed to foreign currency risks.
ues of its financial instruments. The Group is primarily exposed
to fluctuations in interest rates on its financial liabilities at The translation of foreign operations into the Group reporting
floating rates which may cause variations in the Group’s finan- currency leads to currency translation effects. The Group may
cial result. The exposure is addressed through the management hedge certain net investments in foreign entities with foreign
of the fixed/floating ratio of financial liabilities. To manage this currency borrowings or other instruments. Hedges of net
mix, the Group may enter into interest rate swap agreements, investments in foreign entities are accounted for similarly to
in which it exchanges periodic payments based on notional cash flow hedges. To the extent that the net investment hedge
amounts and agreed-upon fixed and floating interest rates. is effective, all foreign exchange gains or losses are recognized
in equity and included in currency translation adjustments.
Interest rate sensitivity
The Group’s sensitivity analysis has been determined based on Due to the local nature of the construction materials business,
the interest rate exposure relating to the Group’s financial lia- transaction risk is limited. However, for many Group compa-
bilities at a variable rate on a post hedge basis as at Decem- nies, income will be primarily in local currency, whereas debt
ber 31. servicing and a significant amount of capital expenditures may
be in foreign currencies. As a consequence thereof, subsidiaries
A 1 percentage point change is used when the interest rate risk may enter into derivative contracts which are designated as
is reported internally to key management personnel and repre- either cash flow hedges or fair value hedges, as appropriate,
sents management’s assessment of a reasonably possible but which in general do not include the hedging of forecasted
change in interest rates. transactions.
At December 31, a 1 percentage point shift in interest rates, Currency sensitivity

with all other assumptions held constant, would result in The Group’s sensitivity analysis has been determined based on
approximately CHF 38 million (2013: 36) of annual additional/ the Group’s net transaction exposure that arises on monetary
lower financial expenses before tax on a post hedge basis. financial assets and liabilities at December 31 that are denomi-
nated in a foreign currency other than the functional currency
The Group’s sensitivity to interest rates is slightly higher than in which they are measured. The Group’s net foreign currency
last year mainly due to a shift of the reset dates of floating rate transaction risk mainly arises from CHF, USD and EUR against
liabilities towards the lower end of the one year period. This the respective currencies the Group operates in.
effect has even compensated the decrease of the ratio of
financial liabilities at variable rates to total financial liabilities A 5 percent change is used when the net foreign currency
from 44 percent to 42 percent. transaction risk is reported internally to key management per-
sonnel and represents management’s assessment of a reason-
Impacts on equity due to derivative instruments are considered ably possible change in foreign exchange rates.
as not material based on the shareholders’ equity of Group
Holcim. A 5 percent change in CHF, USD and EUR against the respective
currencies the Group operates in would only have an immate-
rial impact on foreign exchange (loss) gains net on a post
hedge basis in both the current and prior year.
Impacts on equity due to derivative instruments are considered

as not material based on the shareholders’ equity of Group
Holcim.
Capital structure The Group monitors capital, among others, on the basis of the
The Group’s objectives when managing capital are to secure ratio of funds from operations as a percentage of net financial
the Group’s ongoing financial needs to continue as a going con- debt and the ratio of net financial debt to EBITDA.
cern as well as to cater for its growth targets, in order to pro-
vide returns to shareholders and benefits for other stakehold- Funds from operations is calculated as net income plus depre-
ers and to maintain a cost-efficient and risk-optimized capital ciation, amortization and impairment as shown in the consoli-
structure. dated statement of income. Net financial debt is calculated as
financial liabilities less cash and cash equivalents as shown in
The Group manages the capital structure and makes adjust- the consolidated statement of financial position.
ments to it in light of changes in economic conditions, its busi-
ness activities, the investment and expansion program and the The net financial debt to EBITDA ratio is used as an indicator of
risk characteristics of the underlying assets. In order to main- financial risk and shows how many years it would take the
tain or adjust the capital structure, the Group may adjust the Group to pay back its debt.
amount of dividends paid to shareholders, return capital to
shareholders, issue new shares, increase debt or sell assets to During 2014, the Group’s target, which remained the same as in
reduce debt. 2013, was to maintain a ratio of funds from operations as a per-
centage of net financial debt of at least 25 percent and a net
financial debt to EBITDA ratio of less than 2.8x.

Depreciation, amortization and impairment (note 9) 1,434 1,565
Funds from operations 3,053 3,161
Financial liabilities (note 27) 11,793 11,705

Cash and cash equivalents (note 17) (2,149) (2,244)
Net financial debt 9,644 9,461
Funds from operations/net financial debt 31.7% 33.4%

Net financial debt 9,644 9,461
EBITDA 4,156 4,332
Net financial debt/EBITDA 2.3 2.2
Credit risk Derivatives are initially recognized at fair value on the date a
Credit risks arise, among others, from the possibility that cus- derivative contract is entered into and are subsequently remea-
tomers may not be able to settle their obligations as agreed. To sured at their fair value. The method of recognizing the result-
manage this risk, the Group periodically assesses the financial ing gain or loss is dependent on the nature of the item being
reliability of customers. hedged. On the date a derivative contract is entered into, the
Group designates certain derivatives as either (a) a hedge of
Credit risks, or the risk of counterparties defaulting, are con- the fair value of a recognized asset or liability (fair value hedge)
stantly monitored. Counterparties to financial instruments or (b) a hedge of a particular risk associated with a recognized
consist of a large number of major financial institutions. The asset or liability, such as future interest payments on floating
Group does not expect any counterparty to be unable to fulfill rate debt (cash flow hedge) or (c) a hedge of a foreign currency
their obligations under their respective financing agreements. risk of a firm commitment (cash flow hedge) or (d) a hedge of a
At year end, Holcim has no significant concentration of credit net investment in a foreign entity.
risk with any single counterparty or group of counterparties.
Changes in the fair value of derivatives that are designated and
The maximum exposure to credit risk is represented by the car- qualify as fair value hedges and that are highly effective are
rying amount of each financial asset, including derivative recorded in the statement of income, along with any changes
financial instruments, in the consolidated statement of finan- in the fair value of the hedged asset or liability that is attribut-
cial position. able to the hedged risk.
Accounting for derivative financial instruments and hedging Changes in the fair value of derivatives that are designated and
activities qualify as cash flow hedges and that are highly effective are
The Group mainly uses derivative financial instruments such as recognized outside the statement of income. Where the firm
foreign exchange contracts and interest rate swaps to hedge commitment results in the recognition of an asset, for exam-
certain exposures relating to debt, as well as foreign exchange ple, property, plant and equipment, or a liability, the gains or
contracts to hedge firm commitments for the acquisition of losses previously deferred in equity are transferred from equity
certain property, plant and equipment. and included in the initial measurement of the non-financial
asset or liability. Otherwise, amounts deferred in equity are
The fair values of various derivative instruments are disclosed transferred to the statement of income and classified as reve-
in note 29. Movements in the cash flow hedging reserve are nue or expense in the same periods during which the cash
shown in the statement of changes in consolidated equity of flows, such as hedged firm commitments or interest payments,
Group Holcim. affect the statement of income.
Fair value estimation The fair value of current financial assets and liabilities at amor-
The fair value of publicly traded financial instruments is gener- tized cost are assumed to approximate their carrying amounts
ally based on quoted market prices at the end of the reporting due to the short-term nature of these financial instruments.
period.
For non-publicly traded financial instruments, the fair value is

determined by using a variety of methods, such as the dis-
counted cash flow method and option pricing models. The val-
uation methods seek to maximize the use of observable market
data existing at the end of the reporting period.
Fair values
Million CHF Carrying amount (by measurement basis) Comparison
Amortized Fair value Fair value Total Fair value
cost level 1 level 2
2014
Current financial assets
Cash and cash equivalents 2,149 2,149
Trade accounts receivable 2,226 2,226
Other receivables 211 211
Other current assets 11 1
Long-term financial assets

Long-term receivables 327 327 3314
Financial investments third parties 282 21 851 115
Derivative assets 3 50 50
Current financial liabilities

Trade accounts payable 2,101 2,101
Current financial liabilities 2,499 2,499
Derivative liabilities 3 3 3
Long-term financial liabilities

Long-term financial liabilities 9,291 9,291 10 3475
1 Available-for-sale.
2 Financial investments measured at cost.
3 Held for hedging.
4 The comparison fair value for long-term receivables consists of CHF 6 million level 1 and CHF 326 million level 2 fair value measurements.
5 The comparison fair value for long-term financial liabilities consists of CHF 8,191 million level 1 and CHF 2,156 million level 2 fair value measurements.
Million CHF Carrying amount (by measurement basis) Comparison

Amortized Fair value Fair value Total Fair value
cost level 1 level 2
2013
Current financial assets
Cash and cash equivalents 2,244 2,244
Trade accounts receivable 2,121 2,121
Other receivables 152 152
Other current assets 11 861 87
Derivative assets 3
6 6
Long-term financial assets

Long-term receivables 314 314 3164
Financial investments third parties 35 2 2 1 89 1 126
Derivative assets 3 96 96
Current financial liabilities

Trade accounts payable 1,934 1,934
Current financial liabilities 2,920 2,920
Derivative liabilities3 1 1
Long-term financial liabilities

Long-term financial liabilities 8,785 8,785 9 3035
1
Available-for-sale.
2
Financial investments measured at cost.
3
Held for hedging.
4
The comparison fair value for long-term receivables consists of CHF 4 million level 1 and CHF 312 million level 2 fair value measurements.
5
The comparison fair value for long-term financial liabilities consists of CHF 7,416 million level 1 and CHF 1,887 million level 2 fair value measurements.
The table shows the carrying amounts and fair values of finan- Level 2 fair value measurements are those derived from valua-
cial assets and liabilities. tion techniques using inputs for the asset or liability that are
observable market data, either directly or indirectly. Such valu-
The levels of fair value hierarchy used are defined as follows: ation techniques include the discounted cash flow method and
option pricing models. For example, the fair value of interest
Level 1 fair value measurements are those derived from quoted rate and currency swaps is determined by discounting esti-
prices (unadjusted) in active markets for identical assets or lia- mated future cash flows, and the fair value of forward foreign
bilities. The types of assets carried at level 1 fair value are exchange contracts is determined using the forward exchange
equity and debt securities listed in active markets. market at the end of the reporting period.
Level 3 fair value measurements are those derived from valua-

tion techniques using inputs for the asset or liability that are
not based on observable market data. In 2014 and 2013, there
were no financial assets and liabilities allocated to level 3.
There have been no transfers between the different hierarchy

levels in 2014 and 2013.
Notes to the consolidated financial statements
1 Changes in the scope of consolidation

During 2014 and 2013, there were no business combinations
that were either individually material or that were considered
material on an aggregated basis.
On March 28, 2013, Holcim disposed of a 25 percent equity

interest in Cement Australia to HeidelbergCement, and
retained a 50 percent equity interest in that company. This
resulted in a net gain on disposal of CHF 136 million (AUD 151
million) included in “Other income”. This transaction resulted
in Holcim losing control of Cement Australia and obtaining
joint control over that entity. According to IFRS 11 Joint Arrange-
ments, it has been classified as a joint operation.
An overview of the subsidiaries, joint ventures and associated

companies is included in the section “Principal companies of
the Holcim Group” on pages 219 to 221.
2 Principal exchange rates

The following table summarizes the principal exchange rates
that have been used for translation purposes.
Statement of income Statement of financial position

Average exchange rates Year-end exchange rates
in CHF in CHF
2014 2013 31.12.2014 31.12.2013
1 Euro EUR 1.21 1.23 1.20 1.23
1 US Dollar USD 0.92 0.93 0.99 0.89
1 British Pound GBP 1.51 1.45 1.54 1.47
1 Australian Dollar AUD 0.83 0.90 0.81 0.79
1 Canadian Dollar CAD 0.83 0.90 0.85 0.84
1,000 Indonesian Rupiah IDR 0.08 0.09 0.08 0.07
100 Indian Rupee INR 1.50 1.59 1.56 1.44
100 Moroccan Dirham MAD 10.88 11.02 10.95 10.90
100 Mexican Peso MXN 6.88 7.27 6.72 6.81
100 Philippine Peso PHP 2.06 2.19 2.21 2.00
3 Information by reportable segment

Asia Pacific Latin America Europe
2014 2013 2014 2013 2014 2013
Capacity and sales
Million t
Annual cement production capacity 96.4 90.3 35.3 35.3 46.8 47.7
Sales of cement 71.2 70.3 24.6 25.0 26.4 26.7
– of which mature markets 2.7 3.0 14.6 15.0
– of which emerging markets 68.6 67.3 24.6 25.0 11.7 11.7
Sales of mineral components 0.6 0.7 2.3 2.1
Sales of aggregates 24.8 25.2 7.5 10.2 73.1 74.1
Sales of asphalt 5.6 4.9
Million m3
Sales of ready-mix concrete 10.8 10.9 6.4 8.0 11.9 12.3
Statement of income, statement of finan-

cial position and statement of cash flows
Million CHF
Net sales to external customers 6,926 7,210 2,896 3,198 5,208 5,282
Net sales to other segments 44 72 117 150 346 329
Total net sales 6,970 7,282 3,012 3,349 5,554 5,611
– of which mature markets 1,775 2,043 4,465 4,423
– of which emerging markets 5,195 5,240 3,012 3,349 1,089 1,188
Operating EBITDA 1,332 1,473 861 938 991 946
Operating EBITDA margin in % 19.1 20.2 28.6 28.0 17.8 16.9
Depreciation, amortization and
impairment of operating assets (398) (442) (197) (216) (482) (510)
Operating profit (loss) 934 1,030 663 722 510 436
– of which mature markets 150 176 312 295
– of which emerging markets 784 854 663 722 198 141
Operating profit margin in % 13.4 14.1 22.0 21.6 9.2 7.8
Depreciation, amortization and
impairment of non-operating assets 0 (6) (1) 0 (2) (1)
Other (expenses) income (122) (85) (104) (143) (132) (138)
Share of profit of associates and joint ventures 11 8 (1) 0 6 5
Other financial income 9 7 6 3 5 8
EBITDA 1,231 1,408 763 798 872 822
Investments in associates and joint ventures 70 65 0 1 265 263
Net operating assets 7,408 6,540 3,456 3,331 7,964 8,112
Total assets1 11,889 10,616 5,436 5,083 12,713 13,479
Total liabilities1 4,994 4,441 3,597 3,208 6,283 6,511
Cash flow from operating activities 831 1,179 283 478 485 502
Cash flow margin in % 11.9 16.2 9.4 14.3 8.7 8.9
Acquisition cost segment assets 2 829 924 530 636 414 470
Cash flow from investing activities 3 (867) (790) (477) (605) (415) (403)
Impairment loss4 (2) (17) (5) (7) (7) (16)
Personnel
Number of personnel 31,850 34,080 10,733 11,181 15,399 15,868
1
Due to the reallocation of a reporting unit from “Corporate/Eliminations” to “Asia Pacific”, the allocation of the positions “Total assets” and “Total liabilities”
changed and as a result, the comparative figures for these two reportable segments were restated accordingly by CHF 495 million for “Total assets” and by CHF
1,415 million for “Total liabilities”.
2 Property, plant and equipment and intangible assets acquired during the period.
North America Africa Middle East Corporate/Eliminations Total Group

2014 2013 2014 2013 2014 2013 2014 2013
21.9 22.0 11.0 11.0 211.4 206.2

13.0 11.7 8.3 7.9 (3.2) (2.6) 140.3 138.9
13.0 11.7
8.3 7.9
1.4 1.3 4.3 4.1
45.7 42.8 2.0 2.2 153.1 154.5
45.7 42.8
2.0 2.2
4.5 4.1 10.0 8.9
7.2 7.5 0.7 0.8 37.0 39.5

7.2 7.5
0.7 0.8
3,336 3,171 745 857 19,110 19,719

117 27 (623) (578)
3,336 3,171 861 884 (623) (578) 19,110 19,719
3,336 3,171
861 884
600 494 276 283 (314) (238) 3,747 3,896
18.0 15.6 32.1 32.0 19.6 19.8
(286) (295) (56) (67) (10) (8) (1,430) (1,538)

314 199 220 216 (324) (247) 2,317 2,357
314 199
220 216
9.4 6.3 25.5 24.5 12.1 12.0
0 (1) (4) (8)

(24) (66) (13) 7 573 629 179 204
124 149 140 161
1 3 66 43 87 63
577 431 264 290 448 583 4,156 4,332
2 2 1,421 1,231 1,758 1,562
6,282 5,940 852 783 (16) 7 25,946 24,712
7,568 6,947 1,240 1,339 838 481 39,684 37,944
4,109 3,851 634 610 ( 45)5 6465 19,572 19,267
384 249 163 183 352 197 2,498 2,787
11.5 7.8 18.9 20.7 13.1 14.1
189 140 35 46 4 11 2,000 2,227
(115) (98) (23) (6) 172 237 (1,724) (1,665)
(5) (3) 0 (10) 0 (16) (20) (69)
6,777 6,791 1,928 2,128 897 809 67,584 70,857

3 Net investments in property, plant and equipment, Group companies, financial assets, intangible and other assets.
4 Included in depreciation, amortization and impairment of operating and non-operating assets respectively.
5 The amount of CHF -45 million (2013: 646) consists of borrowings by Corporate from third parties amounting to CHF 9,997 million (2013: 9,836) and eliminations
for cash transferred to regions of CHF 10,042 million (2013: 9,190).

Reconciling measures of profit and loss to the consolidated statement of income of Group Holcim
Depreciation, amortization and impairment of operating assets 9 1,430 1,538
Operating EBITDA 3,747 3,896
Dividends earned 11 5 4
Other ordinary income 11 177 208
Share of profit of associates and joint ventures 23 140 161
Other financial income 12 87 63
EBITDA 4,156 4,332
Depreciation, amortization and impairment of operating assets 9 (1,430) (1,538)
Depreciation, amortization and impairment of non-operating assets 11 (4) (8)
Interest earned on cash and marketable securities 12 96 120
Financial expenses 13 (611) (777)
4 Information by product line

Cement1

Statement of income, statement of financial position and statement of cash flows
Net sales to external customers 11,575 11,884
Net sales to other segments 934 1,055
Total net sales 12,509 12,939
– of which Asia Pacific 5,345 5,497
– of which Latin America 2,569 2,747
– of which Europe 2,441 2,618
– of which North America 1,518 1,369
– of which Africa Middle East 793 807
– of which Corporate/Eliminations (158) (99)
Operating profit (loss) 2,104 2,236
– of which Asia Pacific 851 915
– of which Latin America 653 697
– of which Europe 396 414
– of which North America 257 171
– of which Africa Middle East 221 221
– of which Corporate/Eliminations (275) (182)
Operating profit (loss) margin in % 16.8 17.3
Net operating assets 17,585 16,641
Acquisition cost segment assets 2 1,620 1,756
Cash flow from investing activities3 (1,621) (1,708)
Personnel
Number of personnel 44,403 47,179
1
Cement, clinker and other cementitious materials.
2 Property, plant and equipment and intangible assets acquired during the period.
3 Net investments in property, plant and equipment, Group companies, financial assets, intangible and other assets.
Aggregates Other construction materials Corporate/Eliminations Total Group

and services
2014 2013 2014 2013 2014 2013 2014 2013
1,538 1,585 5,997 6,249 19,110 19,719

866 842 551 562 (2,352) (2,460)
2,404 2,428 6,548 6,812 (2,352) (2,460) 19,110 19,719
554 647 1,522 1,641 (451) (503) 6,970 7,282
61 85 632 822 (250) (305) 3,012 3,349
1,240 1,189 2,606 2,545 (732) (742) 5,554 5,611
519 478 1,667 1,694 (368) (369) 3,336 3,171
28 26 76 84 (36) (33) 861 884
3 2 46 26 (515) (507) (623) (578)
214 188 0 (67) 2,317 2,357
74 95 10 21 934 1,030
1 11 9 14 663 722
118 83 (4) (61) 510 436
47 34 10 (6) 314 199
3 1 (4) (6) 220 216
(29) (36) (20) (29) (324) (247)
8.9 7.8 0.0 (1.0) 12.1 12.0
4,997 4,848 3,364 3,222 25,946 24,712
238 227 138 240 4 3 2,000 2,227
(206) (157) (87) (113) 190 313 (1,724) (1,665)
5,722 5,812 16,825 17,376 634 490 67,584 70,857

5 Information by country
Net sales Non-current assets
to external customers
Million CHF 2014 2013 2014 2013
Switzerland 654 697 969 980
India 3,163 3,187 4,277 3,762
USA 2,181 1,923 5,616 5,155
United Kingdom 1,920 1,720 2,349 2,283
Australia 1,615 1,890 1,816 1,767
Other countries 9,577 10,302 14,162 13,568
Total Group 19,110 19,719 29,189 27,515
Net sales to external customers are based primarily on the

location of assets (origin of sales).
Non-current assets for this purpose consist of property, plant

and equipment and intangible assets.
6 Change in net sales

Volume and price 595 49
Change in structure (173) (692)
Currency translation effects (1,030) (798)
Total (609) (1,441)
7 Production cost of goods sold

Material expenses (3,163) (3,291)
Fuel expenses (1,141) (1,198)
Electricity expenses (918) (899)
Personnel expenses (1,578) (1,635)
Depreciation, amortization and impairment (1,184) (1,279)
Other production expenses (2,539) (2,692)
Change in inventory (26) (93)
Total (10,548) (11,087)
8 Distribution and selling expenses

Distribution expenses (4,353) (4,406)
Selling expenses (570) (614)
Total (4,924) (5,021)
9 Summary of depreciation, amortization and impairment

Production facilities (1,184) (1,279)
Distribution and sales facilities (166) (185)
Administration facilities (80) (75)
Total depreciation, amortization and impairment of operating assets (A) (1,430) (1,538)
Impairment of long-term financial assets (1) (19)

Impairment of investments in associates and joint ventures 0 (2)
Ordinary depreciation of non-operating assets (3) (3)
Unusual write-offs (1) (3)
Total depreciation, amortization and impairment of non-operating assets (B) (4) (27)
Total depreciation, amortization and impairment (A + B) (1,434) (1,565)

Of which depreciation of property, plant and equipment (note 24) (1,344) (1,420)
10 Change in operating profit

Volume, price and cost 100 764
Change in structure 7 (43)
Currency translation effects (147) (112)
Total (40) 608
11 Other income
Dividends earned 5 4
Other ordinary income 177 208
Depreciation, amortization and impairment of non-operating assets (4) (8)
Total 179 204
The position “Other ordinary income” relates primarily to gains

on disposal of property, plant and equipment.
In 2013 the position “Other ordinary income” included a net

gain on the disposal of 25 percent equity interest in Cement
Australia of CHF 136 million (AUD 151 million). Additional infor-
mation is disclosed in note 1.
12 Financial income
Interest earned on cash and marketable securities 96 120
Other financial income 87 63
Total 183 183
In 2014 the position “Other financial income” included the par-

tial realization of the change in fair value of the compensation
related to the nationalization of Holcim Venezuela in the
amount of CHF 56 million (USD 61 million), respectively CHF 57
million (USD 61 million) in 2013. Additional information is dis-
closed in note 20.
The remaining amounts in both years relate primarily to inter-

est income from loans and receivables.
13 Financial expenses
Interest expenses (558) (616)
Amortization on bonds and private placements (15) (13)
Fair value changes on financial instruments 4 0
Unwinding of discount on provisions (22) (19)
Other financial expenses (54) (68)
Foreign exchange loss net (35) (98)
Financial expenses capitalized 69 38
Total (611) (777)
The weighted average nominal interest rate of financial liabili-

ties at December 31, 2014, was 4.2 percent (2013: 4.6).
The positions “Interest expenses” and “Other financial

expenses” relate primarily to financial liabilities measured at
amortized cost.
The position “Financial expenses capitalized” comprises inter-

est expenditures on large-scale projects during the reporting
period.
Information about the Group’s exposure to the risk of changes

in market interest rates and foreign currency exchange rates is
disclosed within the section “Risk management” on page 169.
14 Income taxes
Current taxes (552) (798)
Deferred taxes (36) 266
Total (588) (533)
Current taxes include an income of CHF 72 million (2013: -148)

in respect of prior years. Last year tax expense of CHF 148 mil-
lion largely related to Holcim Mexico as a result of changes in
tax rules.
Deferred tax by type

Property, plant and equipment 4 24
Intangible and other long-term assets 3 (30)
Provisions (16) 5
Tax losses carryforward 32 301
Other (60) (33)
Total (36) 266
Reconciliation of tax rate

2014 2013
Group's expected tax rate 33% 30%
Effect of non-deductible items 1% 2%
Effect of non-taxable items and income taxed at different tax rates (6%) (4%)
Net change of unrecognized tax losses carryforward 3% (6%)
Prior year taxes (3%) 7%
Other items 0% (3%)
Group's effective tax rate 27% 25%
The Group’s expected tax rate is a weighted average tax rate

based on profits (losses) before taxes of Group companies. The
increase of the Group’s expected tax rate is largely due to a
shift of net income before taxes to regions with higher tax
rates.
In 2013, the changes in tax rules in Mexico largely resulted in

the increase in prior year taxes and in the net change of unrec-
ognized tax losses carryforward.
15 Research and development

Research and development projects are carried out with a view
to generate added value for customers through end user ori-
ented products and services. Additionally, process innovation
aims at environmental protection and production system
improvements. Research and development costs of CHF 74 mil-
lion (2013: 74) were charged directly to the consolidated state-
ment of income.
16 Earnings per share

2014 2013
Earnings per share in CHF 3.95 3.91
Net income – shareholders of Holcim Ltd – as per statement of income (in million CHF) 1,287 1,272
Weighted average number of shares outstanding 325,734,235 325,492,506
Fully diluted earnings per share in CHF 3.95 3.91

Net income used to determine diluted earnings per share (in million CHF) 1,287 1,272
Weighted average number of shares outstanding 325,734,235 325,492,506
Adjustment for assumed exercise of share options 128,743 141,343
Weighted average number of shares for diluted earnings per share 325,862,978 325,633,849
In conformity with the decision taken at the annual general A cash payment out of the capital contribution reserves in
meeting on April 29, 2014, a cash payment out of the capital respect of the financial year 2014 of CHF 1.30 per registered
contribution reserves related to 2013 of CHF 1.30 per registered share, amounting to a maximum payment of CHF 425 million, is
share has been paid. This resulted in a total payout of CHF 424 to be proposed at the annual general meeting of shareholders
million. on April 13, 2015. These consolidated financial statements do
not reflect this cash payment, since it will be effective in 2015
only.
17 Cash and cash equivalents

Cash at banks and on hand 787 615
Short-term deposits 1,362 1,629
Total 2,149 2,244
Bank overdrafts (207) (251)
Cash and cash equivalents for the purpose of the consolidated statement of cash flows 1,942 1,993
Cash and cash equivalents comprise cash at banks and on

hand, deposits held on call with banks and other short-term
highly liquid investments.
Bank overdrafts are included in current financial liabilities.

18 Accounts receivable
Trade accounts receivable – associates and joint ventures 81 91
Trade accounts receivable – third parties 2,145 2,031
Other receivables – associates and joint ventures 83 50
Other receivables – third parties 386 343
Derivative assets 0 6
Total 2,695 2,521
Of which pledged/restricted 59 42
Overdue accounts receivable

Not overdue 1,962 2,064
Overdue 1 to 89 days 546 316
Overdue 90 to 180 days 98 83
Overdue more than 180 days 271 221
./. Allowances for doubtful accounts (182) (163)
Total 2,695 2,521
Due to the local nature of the business, specific terms and con-
ditions for accounts receivable trade exist for local Group com-
panies and as such Group guidelines are not required.
The overdue amounts relate to receivables where payment

terms specified in the terms and conditions established with
Holcim customers have been exceeded.
Allowance for doubtful accounts

January 1 (163) (171)
Change in structure (3) 0
Allowance recognized (24) (25)
Amounts used 15 5
Unused amounts reversed 2 1
Currency translation effects (9) 27
December 31 (182) (163)
19 Inventories
Raw materials and additives 271 245
Semi-finished and finished products 932 845
Fuels 260 229
Parts and supplies 364 354
Unbilled services 36 30
Total 1,863 1,704
In 2014, the Group recognized inventory write-downs to net

realizable value of CHF 2 million (2013: 3).
20 Prepaid expenses and other current assets The total agreed compensation amount was CHF 611 million
On September 4, 2010, Holcim Ltd signed a settlement with the (USD 650 million), of which a first down-payment of CHF 244
Bolivarian Republic of Venezuela agreeing on the terms for Ven- million (USD 260 million) was received on September 10, 2010
ezuela’s compensation payment for the June 2008 nationaliza- and in the years 2011 to 2013 further payments were received,
tion of Holcim (Venezuela) C.A. and the suspension of the inter- each amounting to USD 97.5 million (2011: CHF 87 million; 2012:
national arbitration procedure before the International Centre CHF 91 million; 2013: CHF 88 million). In 2014, a final payment of
for Settlement of Investment Disputes (ICSID) in connection USD 97.5 million (CHF 89 million) was received.
with that nationalization.
In 2014, CHF 56 million (USD 61 million) was realized through
“other financial income”; in 2013, this amounted to CHF 57 mil-
lion (USD 61 million).
21 Assets and related liabilities classified as held for sale

Cash and cash equivalents 1 0
Other current assets 29 88
Intangible assets 19 64
Other long-term assets 40 141
Assets classified as held for sale 283 756
Short-term liabilities 25 115

Long-term provisions 8 92
Other long-term liabilities 0 6
Liabilities directly associated with assets classified as held for sale 33 213
Net assets classified as held for sale 249 543
On January 5, 2015, based on binding agreements dated Octo- As per September 30, 2013, the assets and liabilities of the
ber 2014, Group Holcim and Cemex announced the successful operations in Spain and Czech Republic were classified as held
closure of their series of transactions in Europe, as detailed for sale based on a Memorandum of Understanding, which had
below. foreseen, in contrast to the binding agreements mentioned
above, that Holcim and Cemex would combine their entire
In Germany, Holcim will purchase a cement plant, two grinding Spanish operations in cement, ready-mix and aggregates, giv-
stations and one slag granulator as well as various aggregates ing Holcim a shareholding of 25 percent of the combined entity.
locations and ready-mix plants from Cemex in the western The scope of the transaction for Germany and the Czech
part of the country, which will be combined with Holcim’s Republic in the binding agreement remains unchanged.
existing Northern German operations. In Spain, Holcim and
Cemex will no longer form a joint organization as initially As a result of the above, those assets and liabilities which will
planned and communicated. Instead, Cemex will purchase not be sold have been reclassified as per December 31, 2014,
Holcim’s Gador cement plant and Yeles grinding station, while back to their respective balance sheet positions while, as per
Holcim will keep its remaining operations in Spain, as well as September 30, 2014, they were classified as held for sale. In
its aggregates and ready-mix positions. Cemex will buy Holcim addition, a catch-up of depreciation covering the period while
(Česko) a.s. which is involved in the cement, aggregates and those assets were classified as held for sale was made and
ready-mix businesses. reflected as a depreciation charge in the fourth quarter 2014.
The comparatives have not been reclassified or re-presented in
As a result of these transactions, Cemex pays Group Holcim any way.
CHF 54 million (EUR 45 million) in cash.
22 Long-term financial assets

Financial investments – third parties 115 126
Long-term receivables – associates and joint ventures 197 198
Long-term receivables – third parties 130 116
Derivative assets 50 96
Total 491 536
Of which pledged/restricted 8 6
Long-term receivables and derivative assets are primarily

denominated in USD, CHF and AUD. The repayment dates vary
between one and 25 years (2013: one and 26 years).
23 Investments in associates and joint ventures

Investments in associates 1,387 1,232
Investments in joint ventures 372 330
Total 1,758 1,562
Movement in investments in associates

January 1 1,232 1,269
Share of profit of associates 93 117
Dividends earned (41) (98)
Net additions (disposals) 7 (7)
Reclassifications 8 (29)
Impairments 0 (2)
December 31 1,387 1,232
Investments in associates
Million CHF 30.9.2014 31.12.2013
Huaxin Cement 819 729
Other associates 520 503
Total 1,339 1,232
The disclosed amounts for the investments in associates are as

of September 30, 2014 and include only the first nine months.
This is due to the fact that Huaxin Cement, a material associate
of the Group, is a publicly listed company in China and has not
yet published its financial statements for the year 2014.
Huaxin Cement Set out below is the summarized financial information for the
Huaxin Cement is Holcim’s strategic partner in China. material associate company Huaxin Cement, which is
As of December 31, 2014, the Group holds 41.9% (2013: 41.9%) of accounted for using the equity method. The summarized finan-
the voting rights in the associate company Huaxin Cement. cial information presented below are the amounts included in
the IFRS financial statements of Huaxin Cement as at Septem-
The fair value of Huaxin Cement based on a quoted market ber 30, 2014 and as at December 31, 2013. As of September 30,
price on December 31, 2014 amounted to CHF 2,303 million 2014, dividends of CHF 11 million (December 31, 2013: 11) were
(2013: 1,521). received from Huaxin Cement.
Huaxin Cement - Statement of financial position

Million CHF 30.9.2014 31.12.2013
Current assets 975 946
Long-term assets 3,169 2,913
Total assets 4,144 3,859
Current liabilities 1,233 1,291

Long-term liabilities 1,123 999
Total liabilities 2,356 2,290
Net assets 1,787 1,569
Shareholders' equity (excluding non-controlling interest) 1,587 1,390
Huaxin Cement - Statement of comprehensive earnings

Million CHF Jan–Sept Jan–Dec
2014 2013
Net sales 1,657 2,419
Net income 180 258
Other comprehensive earnings 0 (1)

Total comprehensive earnings 179 257
A reconciliation of the summarized financial information to the

carrying amount of the investment in Huaxin Cement is as fol-
lows:
Huaxin Cement
Million CHF 30.9.2014 31.12.2013
Group share of 41.9% (2013: 41.9%) of shareholders' equity (excluding non-controlling interest) 665 582
Goodwill 155 147
Total 819 729
The Group has additional interests in associates none of which

is considered as individually material. The following table sum-
marizes, in aggregate, the financial information of all individu-
ally immaterial associates that are accounted for using the
equity method:
Aggregated financial information of Holcim's share in other associates

Million CHF 30.9.2014 31.12.2013
Carrying amount of investments in other associates 520 503
Net income 24 25
Other comprehensive earnings 0 0
There are no unrecognized shares of losses, either for the cur-

rent reporting period or cumulatively, relating to the above
associates.
Movement in investments in joint ventures

January 1 330 270
Share of profit of joint ventures 46 43
Dividends earned (32) (30)
Net (disposals) additions (3) 2
Reclassifications (1) 75
December 31 372 330
The Group has no interests in joint ventures that are regarded

as individually material.
The following table summarizes, in aggregate, the financial

information of all individually immaterial joint ventures that
are accounted for using the equity method:
Aggregated financial information of Holcim's share in joint ventures

Carrying amount of investments in joint ventures 372 330
Net income 46 43
Other comprehensive earnings 0 0
There are no unrecognized shares of losses, either for the cur-

rent reporting period or cumulatively, relating to the above
joint ventures.
Joint operation
Company Principal place of business Ownership interest
Cement Australia Australia 50%
Cement Australia is a strategic partner of the Group by mainly

supplying its shareholders with cement.
On March 28, 2013 the Group disposed of a 25 percent equity

interest in Cement Australia to HeidelbergCement and retained
a 50 percent equity interest in that company. This transaction
resulted in Holcim losing control of Cement Australia and
obtaining joint control over that entity. According to IFRS 11
Joint Arrangements it has been classified as a joint operation.
24 Property, plant and equipment

Million CHF Land Buildings, Machines Furniture, Construction Total
installations vehicles, in progress
tools
2014
Net book value as at January 1 4,341 4,692 7,588 958 2,451 20,029
Change in structure 2 0 (2) (2) 0 (2)
Reclassification from assets classified as held for sale 59 143 59 5 0 266
Additions 32 42 68 18 1,842 2,002
Disposals (44) (1) (14) (24) (2) (86)
Reclassifications 111 480 909 167 (1,667) 0
Depreciation (109) (290) (754) (191) 0 (1,344)
Impairment loss (charged to statement of income) (3) (4) (6) 0 (5) (19)
Currency translation effects 216 88 191 17 52 563
Net book value as at December 31 4,605 5,149 8,040 947 2,670 21,410
At cost of acquisition 6,066 9,436 18,092 3,102 2,749 39,445

Accumulated depreciation/impairment (1,461) (4,288) (10,052) (2,155) (79) (18,034)
Net asset value of leased property,
plant and equipment 0 44 29 45 0 117
Of which pledged/restricted 3
2013
Net book value as at January 1 4,834 5,377 8,635 1,131 1,815 21,791
Change in structure (100) (104) (163) (26) (48) (442)
Reclassification to assets classified as held for sale (77) (226) (132) (17) (12) (464)
Additions 29 10 44 17 2,147 2,247
Disposals (55) (19) (23) (17) (2) (115)
Reclassifications 69 285 595 185 (1,127) 6
Depreciation (108) (304) (793) (216) 0 (1,420)
Impairment loss (charged to statement of income) (3) (16) (11) 0 (10) (40)
Currency translation effects (249) (310) (563) (100) (311) (1,533)
At cost of acquisition 5,522 8,299 16,879 3,022 2,543 36,265

Accumulated depreciation/impairment (1,181) (3,607) (9,291) (2,065) (92) (16,236)
Net asset value of leased property,
plant and equipment 0 44 34 51 0 128
Of which pledged/restricted 19
At December 31, 2014, the fire insurance value of property, In both years, the impairment losses were a consequence of
plant and equipment amounted to CHF 32,892 million (2013: the decrease in demand for construction material in the
30,942). Net gains on sale of property, plant and equipment respective regions and were largely included in production cost
amounted to CHF 123 million (2013: 90). of goods sold in the statement of income.
In 2014, the impairment loss related mainly to Group region Included in land, buildings and installations is investment prop-
Europe (CHF 7 million), Group region North America (CHF 5 mil- erty with a net book value of CHF 71 million (2013: 69). The fair
lion) and Group region Latin America (CHF 5 million). value of this investment property amounted to CHF 107 million
(2013: 107). Rental income related to investment property
In 2013, the impairment loss related mainly to Group region amounted to CHF 2 million (2013: 2).
Europe (CHF 11 million in the United Kingdom) and Group
region Africa Middle East (CHF 10 million).
25 Intangible assets
Million CHF Goodwill Other Total
intangible
assets
2014
Net book value as at January 1 6,881 605 7,486
Change in structure (2) 0 (2)
Reclassification from assets classified as held for sale 20 13 33
Additions 0 32 33
Disposals 0 0 0
Amortization 0 (67) (67)
Impairment loss (charged to statement of income) (1) 0 (1)
Currency translation effects 278 20 297
Net book value as at December 31 7,176 603 7,779
At cost of acquisition 7,422 1,609 9,032

Accumulated amortization/impairment (247) (1,006) (1,253)
2013
Net book value as at January 1 7,386 745 8,131
Change in structure (44) (13) (57)
Reclassification to assets classified as held for sale (50) (15) (64)
Additions 0 23 23
Disposals 0 0 0
Amortization 0 (76) (76)
Impairment loss (charged to statement of income) (5) (1) (5)
Currency translation effects (407) (57) (465)
At cost of acquisition 7,127 1,544 8,671

Accumulated amortization/impairment (246) (939) (1,184)
The other intangible assets have finite useful lives, over which
the assets are amortized. The corresponding amortization
expense is recognized mainly in administration expenses.
Impairment tests for goodwill The cash flow projections are based on a three-year financial
For the purpose of impairment testing, goodwill is allocated to planning period approved by management. Cash flows beyond
a cash generating unit or to a group of cash generating units the three-year budget period are extrapolated based either on
that are expected to benefit from the synergies of the respec- steady or increasing sustainable cash flows. In any event, the
tive business combination. The Group’s cash generating units growth rate used to extrapolate cash flow projections beyond
are defined on the basis of the geographical market, normally the three-year budget period does not exceed the long-term
country- or region-related. The carrying amount of goodwill average growth rate for the relevant market in which the cash
allocated to the countries or regions stated below is significant generating unit operates.
in comparison with the total carrying amount of goodwill,
while the carrying amount of goodwill allocated to the other In respect of the goodwill allocated to “Others”, the same
cash generating units is individually not significant. impairment model and parameters are used, as is the case with
individually significant goodwill positions, except that differ-
For the impairment test, the recoverable amount of a cash gen- ent key assumptions are used depending on the risks associ-
erating unit, which has been determined based on value-in- ated with the respective cash generating units.
use, is compared to its carrying amount. An impairment loss is
only recognized if the carrying amount of the cash generating
unit exceeds its recoverable amount. Future cash flows are dis-
counted using the weighted average cost of capital (WACC).
Key assumptions used for value-in-use calculations in respect of goodwill 2014

Cash generating unit Carrying Currency Pre-tax Long-term
(Million CHF) amount of discount GDP
goodwill rate growth rate
North America 1,788 USD/CAD 7.1% 2.4%
India 1,257 INR 9.9% 6.6%
United Kingdom 843 GBP 6.8% 2.8%
Central Europe 510 CHF/EUR 6.1% 1.3%
Philippines 393 PHP 9.5% 5.0%
Mexico 374 MXN 8.3% 4.0%
France Benelux 288 EUR 7.1% 1.6%
Australia 279 AUD 7.5% 2.9%
Eastern Europe 274 Various 8.0% 3.6%
Others1 1,170 Various 6.7%–28.5% 1.3%–8.4%
Total 7,176
Key assumptions used for value-in-use calculations in respect of goodwill 2013

Cash generating unit Carrying Currency Pre-tax Long-term
(Million CHF) amount of discount GDP
goodwill rate growth rate
North America 1,647 USD/CAD 7.6% 3.3%
India 1,160 INR 13.1% 6.9%
United Kingdom 805 GBP 6.9% 2.1%
Central Europe 515 CHF/EUR 6.0% 1.9%
Philippines 391 PHP 10.2% 5.5%
Mexico 378 MXN 7.8% 3.3%
France Benelux 293 EUR 7.3% 1.8%
Eastern Europe 290 Various 7.2% 3.3%
Australia 273 AUD 8.8% 3.2%
Others1 1,129 Various 6.4%–27.8% 1.3%–7.5%
Total 6,881
1
Individually not significant.
Sensitivity to changes in assumptions increase in the pre-tax discount rate to 7.5 percent would result
With regard to the assessment of value-in-use of a cash gener- in the recoverable amount of France Benelux to be equal to its
ating unit or a group of cash generating units, management carrying amount. With the used pre-tax discount rate of 8.5
believes that except for France Benelux, Brazil and Spain (both percent, the impairment test for Brazil resulted in a recoverable
included in Others above), a reasonably possible change in the amount exceeding its carrying amount by CHF 215 million. An
pre-tax discount rate of 1 percentage point, and a 1 percentage increase in the pre-tax discount rate to 9.2 percent would
point change in long-term GDP growth rate in cases where result in the recoverable amount of Brazil to be equal to its car-
increasing sustainable cash flows were used, would not cause rying amount. With the used pre-tax discount rate of 6.8 per-
the carrying amount of a cash generating unit or a group of cent, the impairment test for Spain resulted in a recoverable
cash generating units to materially exceed its recoverable amount exceeding its carrying amount by CHF 9 million. An
amount. With the used pre-tax discount rate of 7.1 percent, the increase in the pre-tax discount rate to 7.0 percent would
impairment test for France Benelux resulted in a recoverable result in the recoverable amount of Spain to be equal to its car-
amount exceeding its carrying amount by CHF 91 million. An rying amount.
26 Trade accounts payable

Trade accounts payable – associates and joint ventures 16 13
Trade accounts payable – third parties 2,085 1,921
Total 2,101 1,934
27 Financial liabilities
Current financial liabilities – associates and joint ventures 16 5
Current financial liabilities – third parties 1,428 1,030
Current portion of long-term financial liabilities 1,056 1,884
Derivative liabilities 3 1
Total current financial liabilities 2,502 2,920
Long-term financial liabilities – associates and joint ventures 0 9

Long-term financial liabilities – third parties 9,291 8,776
Derivative liabilities 0 0
Total long-term financial liabilities 9,291 8,785
Total 11,793 11,705

Of which secured 84 95
Details of total financial liabilities

Loans from financial institutions 2,833 1,952
Bonds and private placements 8,589 9,253
Commercial paper notes 272 399
Total loans and bonds 11,694 11,604
Obligations under finance leases (note 28) 96 101
Derivative liabilities (note 29) 3 1
Total 11,793 11,705
“Loans from financial institutions” include amounts due to

banks and other financial institutions. Repayment dates vary
between one and 16 years (2013: one and 12 years). CHF 1,441
million (2013: 800) is due within one year.
The Group complied with its debt covenants.
Unutilized credit lines totaled CHF 7,105 million (2013: 7,990) at

year-end 2014, of which CHF 3,820 million (2013: 4,967) are
committed.
Financial liabilities by currency

Currency 2014 2013
1 Interest rate1
Million CHF In % Interest rate Million CHF In %
USD 3,723 31.6 4.4 3,546 30.3 4.2
CHF 2,826 24.0 2.5 2,819 24.1 2.5
EUR 1,265 10.7 3.1 2,033 17.4 6.1
AUD 850 7.2 4.9 701 6.0 6.0
GBP 772 6.5 7.4 782 6.7 7.1
MXN 506 4.3 4.5 436 3.7 4.3
CAD 448 3.8 3.1 482 4.1 3.1
Others 1,404 11.9 5.8 906 7.7 6.3
Total 11,793 100.0 4.2 11,705 100.0 4.6
1 Weighted average nominal interest rate on financial liabilities at December 31.
Interest rate structure of total financial liabilities

Financial liabilities at fixed rates 6,819 6,567
Financial liabilities at floating rates 4,974 5,138
Total 11,793 11,705
Financial liabilities that are hedged to a fixed or floating rate

are disclosed on a post hedge basis.
Information on the maturity of financial instruments is dis-

closed in the section “Risk management” on page 168.
Bonds and private placements as at December 31

Nominal Nominal Effective Term Description Net Net
value interest interest book book
rate rate value value
in CHF1 in CHF1
In million 2014 2013
Holcim Ltd
CHF 250 3.00% 3.19% 2006–2015 Bonds with fixed interest rate 250 250
CHF 400 3.13% 0.25% 2007–2017 Bonds swapped into floating interest rates at inception 436 441
Aggregate Industries Holdings Limited
GBP 163 7.25% 4.38% 2001–2016 Bonds, partly swapped into floating interest rates 269 262
Holcim GB Finance Ltd.
GBP 300 8.75% 8.81% 2009–2017 Bonds guaranteed by Holcim Ltd 461 441
Holcim Capital Corporation Ltd.
USD 50 7.65% 7.65% 2001–2031 Private placement guaranteed by Holcim Ltd 49 44
USD 65 6.59% 2002–2014 Private placement guaranteed by Holcim Ltd 0 58
USD 100 6.59% 2002–2014 Private placement guaranteed by Holcim Ltd 0 89
USD 250 6.88% 7.28% 2009–2039 Bonds guaranteed by Holcim Ltd 239 215
Holcim Capital México, S.A. de C.V.
MXN 1,500 3.86% 5.06% 2012–2015 Bonds guaranteed by Holcim Ltd, with floating interest rates 101 102
MXN 800 3.98% 4.80% 2012–2016 Bonds guaranteed by Holcim Ltd, with floating interest rates 54 54
MXN 1,700 7.00% 7.23% 2012–2019 Bonds guaranteed by Holcim Ltd 114 115
MXN 2,000 3.68% 3.93% 2014–2018 Bonds guaranteed by Holcim Ltd, with floating interest rates 134 0
Holcim Capital (Thailand) Ltd.
THB 1,220 3.52% 3.62% 2010–2015 Bonds guaranteed by Holcim Ltd 37 33
Holcim Finance (Canada) Inc.
CAD 10 6.91% 6.92% 2002–2017 Private placement guaranteed by Holcim Ltd 9 8
CAD 300 3.65% 3.77% 2012–2018 Bonds guaranteed by Holcim Ltd 255 250
Holcim Finance (Luxembourg) S.A.
EUR 600 4.38% 2004–2014 Bonds guaranteed by Holcim Ltd 0 735
EUR 650 9.00% 2009–2014 Bonds guaranteed by Holcim Ltd 0 797
EUR 200 6.35% 6.40% 2009–2017 Bonds guaranteed by Holcim Ltd 240 245
EUR 500 3.00% 3.11% 2014–2024 Bonds guaranteed by Holcim Ltd 596 0
Holcim Finance (Australia) Pty Ltd
AUD 250 7.00% 7.21% 2012–2015 Bonds guaranteed by Holcim Ltd 203 198
Holcim Overseas Finance Ltd.
CHF 425 3.38% 3.42% 2011–2021 Bonds guaranteed by Holcim Ltd 424 424
Subtotal 6,093 6,950
1 Includes adjustments for fair value hedge accounting, where applicable.
Nominal Nominal Effective Term Description Net Net

value interest interest book book
rate rate value value
in CHF1 in CHF1
In million 2014 2013
Subtotal 6,093 6,950
Holcim US Finance S.à r.l. & Cie S.C.S.
EUR 500 2.63% 2.10% 2012–2020 Bonds guaranteed by Holcim Ltd, 621 594
swapped into USD and floating interest rates at inception
ACC Limited
INR 320 8.45% 2009–2014 Non-convertible debentures with fixed interest rate 0 5
Holcim (Costa Rica) S.A.
CRC 10,000 9.80% 10.17% 2010–2015 Floating rate bonds 18 18
CRC 8,500 8.30% 2012–2014 Floating rate bonds 0 15
CRC 8,000 8.70% 8.99% 2014–2016 Bonds with fixed interest rate 15 0
Holcim (Maroc) S.A.
MAD 1,500 5.49% 5.49% 2008–2015 Bonds with fixed interest rate 164 163
Holcim (US) Inc.
USD 33 0.08% 0.08% 1999–2032 Industrial revenue bonds – Mobile Dock & Wharf 33 29
USD 25 0.09% 0.09% 2003–2033 Industrial revenue bonds – Holly Hill 25 22
USD 27 0.02% 0.02% 2009–2034 Industrial revenue bonds – Midlothian 26 24
Total 8,589 9,253
1
Includes adjustments for fair value hedge accounting, where applicable.
28 Leases
Future minimum lease payments
Operating Finance Operating Finance
leases leases leases leases
Million CHF 2014 2014 2013 2013
Within 1 year 121 22 118 25
Within 2 years 98 18 90 20
Thereafter 256 62 301 61
Total 657 143 686 150
Interest (47) (49)
Total finance leases 96 101
The total expense for operating leases recognized in the con-

solidated statement of income in 2014 was CHF 127 million
(2013: 123). There are no individually significant operating lease
agreements.
The liabilities from finance leases due within one year are
included in current financial liabilities and liabilities due there-
after are included in long-term financial liabilities (note 27).
There are no individually significant finance lease agreements.
29 Derivative financial instruments

Derivative assets with maturities exceeding one year are
included in long-term financial assets (note 22) and derivative
assets with maturities less than one year are included in
accounts receivable (note 18).
Derivative liabilities are included in financial liabilities

(note 27).
Derivative assets and liabilities

Fair value Fair value Nominal Fair value Fair value Nominal
assets liabilities amount assets liabilities amount
Million CHF 2014 2014 2014 2013 2013 2013
Fair value hedges
Interest rate 42 0 477 51 0 474
Currency 0 0 0 0 0 19
Cross-currency 7 0 621 44 0 558
Total fair value hedges 50 0 1,098 95 0 1,050
Cash flow hedges

Interest rate 0 0 5 0 0 73
Currency 0 3 181 1 1 33
Total cash flow hedges 0 3 186 1 1 106
Net investment hedges

Cross-currency 0 0 0 6 0 60
Total net investment hedges 0 0 0 6 0 60
Total 50 3 1,283 102 1 1,216

30 Deferred taxes
Deferred tax by type of temporary difference 2014 2013
Million CHF
Deferred tax assets
Intangible and other long-term assets 10 6
Provisions 360 316
Tax losses carryforward 913 835
Other 263 261
Total 1,568 1,426
Deferred tax liabilities

Property, plant and equipment 2,209 2,074
Intangible and other long-term assets 174 172
Provisions 4 0
Other 70 78
Total 2,456 2,325
Deferred tax liabilities net 888 898
Reflected in the statement of financial position as follows:

Deferred tax assets (527) (391)
Deferred tax liabilities 1,415 1,290
Deferred tax liabilities net 888 898
Temporary differences for which no deferred tax is recognized

On unremitted earnings of subsidiary companies (taxable temporary difference) 9,465 8,729
Tax losses carryforward

Losses carry- Tax Losses carry- Tax
forward effect forward effect
2014 2014 2013 2013
Million CHF
Total tax losses carryforward 4,725 1,428 4,302 1,188
Of which reflected in deferred taxes (2,861) (913) (2,749) (835)
Total tax losses carryforward not recognized 1,864 516 1,554 353
Expiring as follows:
1 year 9 2 1 0
2 years 17 5 4 1
3 years 64 15 47 12
4 years 39 9 15 4
5 years 26 6 7 2
Thereafter 1,709 479 1,480 334
The increase in total tax losses carryforward not recognized sale in 2013 and which has been reclassified as per December 31,
relates largely to Holcim Spain which was classified as held for 2014, back to the respective balance sheet positions (note 21).
31 Provisions
Site restoration Specific Other Total Total
and other environ- business provisions 2014 2013
mental provisions risks
Million CHF
January 1 719 136 445 1,301 1,459
Change in structure 0 0 0 0 (27)
Reclassification from (to) liabilities directly associated with
assets held for sale 21 25 2 49 (51)
Provisions recognized 53 41 233 327 351
Provisions used during the year (59) (30) (187) (275) (258)
Provisions reversed during the year (36) (37) (70) (142) (119)
Unwinding of discount and discount rate changes 21 1 0 22 21
Currency translation effects 23 (1) 11 33 (75)
December 31 742 136 435 1,314 1,301
Of which short-term provisions 75 11 147 234 224
Of which long-term provisions 667 125 288 1,080 1,077
Site restoration and other environmental provisions represent Other provisions relate mainly to provisions that have been set
the Group’s legal or constructive obligations of restoring a site. up to cover other contractual liabilities. The composition of
The timing of cash outflows of these provisions is dependent these items is extremely manifold and comprises, as of Decem-
on the completion of raw material extraction and the com- ber 31, among other things: provisions for various severance
mencement of site restoration. payments to employees of CHF 30 million (2013: 27), provisions
for performance related compensation payments of CHF 58
Specific business risks comprise litigation and restructuring million (2013: 51), provisions for contingent liabilities arising
costs which arise during the normal course of business. Provi- from business combinations of CHF 17 million (2013: 18), provi-
sions for litigation mainly relate to antitrust investigations, sions related to sales and other taxes of CHF 12 million (2013:
product liability as well as tax claims and are set up to cover 10) and provisions for health insurance and pension schemes,
legal and administrative proceedings. Total provisions for liti- which do not qualify as benefit obligations, of CHF 7 million
gations amounted to CHF 85 million (2013: 71) on December 31. (2013: 9). The expected timing of the future cash outflows is
In 2014, it included several provisions for risks related to uncertain.
income taxes and other taxes of CHF 30 million (2013: 32). The
timing of cash outflows of provisions for litigations is uncer-
tain since it will largely depend upon the outcome of adminis-
trative and legal proceedings.
Provisions for restructuring costs relate to various restructur-

ing programs and amounted to CHF 51 million (2013: 65) on
December 31. These provisions are expected to result in future
cash outflows mainly within the next one to three years.
32 Employee benefits
Personnel expenses 2014 2013
Million CHF
Production and distribution 2,377 2,493
Marketing and sales 368 377
Administration 793 782
Total 3,538 3,653
Personnel expenses and number of personnel United Kingdom (UK)

The Group’s total personnel expenses, including social charges, The companies operate several defined benefit pension plans
are recognized in the relevant expenditure line by function in in the UK, under which pensions payable to employees depend
the consolidated statement of income and amounted to on final salary and length of service. Active members of these
CHF 3,538 million (2013: 3,653). As of December 31, 2014, the plans pay a contribution as a percentage of pensionable salary,
Group employed 67,584 people (2013: 70,857). and the companies meet the balance of the cost of providing
the benefits. All of these plans are closed to new entrants, and
Defined benefit pension plans the companies operate defined contribution plans which
The Group’s main defined benefit pension plans are in Switzer- employees who are not members of a defined benefit plan are
land, the United Kingdom and in North America and are funded eligible to join.
through legally separate trustee administered funds. The cash
funding of these plans, which may from time to time involve The companies’ UK defined benefit pension plans are regis-
special payments, is designed to ensure that present and future tered schemes under UK tax law, and in each case the assets
contributions should be sufficient to meet future liabilities. are held in a trust and managed by trustees separate from the
company. In accordance with UK legislation, the trustees of
Switzerland each plan undertake an actuarial valuation at least once every
The Swiss pension plans of Swiss companies contain a cash bal- three years. After each valuation, the company and the trustees
ance benefit formula, accounted for as a defined benefit plan. agree on the contributions required to be made to the relevant
Employer and employee contributions are defined in the pen- plan. These contributions are determined based on certain
sion fund rules in terms of an age related sliding scale of per- assumptions including the returns which will be achieved on
centages of salary. Under Swiss law, the pension fund guaran- the plans’ investments and the longevity of plan members. To
tees the vested benefit amount as confirmed annually to the extent that the assumptions are not borne out in practice,
members. Interest may be added to member balances at the there is a risk that future contributions from the companies
discretion of the Board of Trustees. At retirement date, mem- will be higher than anticipated. The trustees invest in a diversi-
bers have the right to take their retirement benefit as a lump fied range of assets including insurance policies, thereby reduc-
sum, an annuity or part as a lump sum with the balance con- ing the potential risks.
verted to a fixed annuity at the rates defined in the fund rules.
The Board of Trustees may increase the annuity at their discre- The companies and trustees agree a contribution schedule for
tion subject to the plan’s funded status including sufficient the defined benefit pension plans in accordance with an actu-
free funds as determined according to Swiss statutory valua- arial valuation for funding purposes. This contribution schedule
tion rules. The Swiss pension plans fulfill the requirements of is revised following these actuarial valuations.
the regulatory framework which requires a minimum level of
benefits. No material plan amendment or curtailment has occurred dur-
ing the year. In 2013, a defined benefit plan was transferred to
The trustees invest in a diversified range of assets. The invest- an insurance company. The plan liabilities transferred, which
ment strategy takes into account the pension fund’s tolerance equaled the plan assets, amounted to CHF 115 million and no
to risk as well as the funding needs (minimum investment settlement gain or loss was recognized. As a result of this
return necessary to stabilize the coverage ratio in the long run). transaction, all future benefits will be paid out by the insur-
ance company to the respective employees concerned.
No material plan amendment, curtailment or settlement has
occurred during the year.
North America (United States and Canada) The plan assets are invested in a diversified range of assets.
The companies operate defined contribution plans for existing The assets in the United States include a certain proportion
and new employees and a number of defined benefit pension which hedge the liability swings against interest rate move-
plans. Some defined benefit pension plans have been closed to ments, with those assets primarily invested in fixed income
new entrants and were frozen to future accruals. Active investments, particularly intermediate and longer term instru-
employees participate in defined contribution or defined bene- ments.
fit plans. The defined benefit pension plans have been based or
are based on the average final salary. The companies in the United States intend to pay the minimum
required contributions as prescribed under Internal Revenue
The companies must contribute a minimum amount to the Service (IRS) regulations in addition to voluntary amounts in
defined benefit pension plans annually which is determined order to achieve and maintain an IRS funded status of at least
actuarially and is comprised of service costs as well as payment 80%. However, for the Canadian plans, the companies intend to
toward any existing deficits. For plans that are currently closed, pay at least the minimum amount prescribed by the Ontario
there will generally be no service component in the future. Pension Benefits Act.
Employer contributions toward the defined contribution plan
are made either monthly or quarterly and are based on a per- No material plan amendment, curtailment or settlement has
centage of covered payroll. occurred during the year.
The pension committees of the various companies are respon- Other post-employment benefit plans
sible for operating the defined benefit plans in compliance The Group operates a number of other post-employment bene-
with existing regulations and for the management of plan fit plans. A number of these plans are not externally funded,
assets. but are covered by provisions in the statement of financial
position of the respective companies.
The plans hold a large percentage of plan assets in equity
investments. To the extent that equity performance is volatile Status of the Group’s defined benefit plans
in the future, the required employer contributions would also The status of the Group’s defined benefit plans using actuarial
experience similar volatility in the future. The companies assumptions determined in accordance with IAS 19 Employee
assume and are responsible for the management of all risks Benefits is summarized below. The tables provide reconcilia-
associated with the defined benefit pension plans, including tions of defined benefit obligations, plan assets and the
investment risks, interest rate risks and longevity risks. These funded status for the defined benefit pension plans to the
risks are not considered significant to the various companies as amounts recognized in the statement of financial position.
a whole.
Reconciliation of retirement benefit plans to the statement of financial position

Net liability arising from defined benefit pension plans 774 587
Net liability arising from other post-employment benefit plans 81 64
Net liability 854 651
Reflected in the statement of financial position as follows:

Other long-term assets (8) (4)
Defined benefit obligations 863 655
Net liability 854 651
Retirement benefit plans

Defined benefit Other post-employment
pension plans benefit plans
Million CHF 2014 2013 2014 2013
Present value of funded obligations 3,454 2,976 0 0
Fair value of plan assets (2,942) (2,628) 0 0
Plan deficit of funded obligations 512 348 0 0
Present value of unfunded obligations 262 239 81 64
Net liability from funded and unfunded plans 774 587 81 64
Of which:
United Kingdom 162 109 0 0
North America (United States and Canada) 72 55 59 51
Rest of world 339 305 22 13
Costs recognized in the statement of income are as follows:

Current service costs 84 91 2 2
Past service costs (including curtailments) 0 (14) 3 (3)
(Gains) losses on settlements (1) 4 2 0
Net interest expense 23 28 3 3
Others 1 1 0 0
Total (included in personnel expenses) 107 110 10 2
Of which:
Rest of world 33 28 7 (1)
Amounts recognized in other comprehensive earnings:

Actuarial gains (losses) arising from changes in demographic assumptions 26 (21) (3) 6
Actuarial gains (losses) arising from changes in financial assumptions (418) 99 (5) 5
Actuarial gains (losses) arising from experience adjustments 32 (35) 3 7
Return on plan assets excluding interest income 165 155 0 0
Total recorded in other comprehensive earnings (195) 198 (5) 18
Of which:
Switzerland (80) 98 0 0
United Kingdom (44) 30 0 0
North America (United States and Canada) (30) 71 (3) 16
Rest of world (41) 0 (2) 2

Defined benefit Other post-employment
pension plans benefit plans
Million CHF 2014 2013 2014 2013
Present value of funded and unfunded obligations
Opening balance as per January 1 3,214 3,445 64 83
Current service costs 84 91 2 2
Interest expense 117 108 3 3
Contribution by the employees 20 21 0 0
Actuarial (gains) losses 360 (43) 5 (18)
Benefits paid (165) (204) (5) (3)
Past service costs (including curtailments) 0 (14) 3 (3)
Change in structure 0 (13) 0 3
Settlements (5) (112) 2 0
Currency translation effects 89 (65) 6 (2)
Closing balance as per December 31 3,715 3,214 81 64
Of which:
Switzerland 1,627 1,420 0 0
Fair value of plan assets

Opening balance as per January 1 2,628 2,631 0 0
Interest income 94 80 0 0
Return on plan assets excluding interest income 165 155 0 0
Contribution by the employer 106 109 4 3
Contribution by the employees 20 21 0 0
Benefits paid (142) (190) (4) (3)
Change in structure 0 (13) 0 0
Settlements (3) (116) 0 0
Currency translation effects 74 (49) 0 0
Closing balance as per December 31 2,942 2,628 0 0
Of which:
Switzerland 1,427 1,302 0 0

Defined benefit
pension plans
Plan assets based on quoted market prices:
Cash and cash equivalents 113 92
Equity instruments of Holcim Ltd or subsidiaries 2 2
Equity instruments of third parties 979 934
Debt instruments of Holcim Ltd or subsidiaries 5 8
Debt instruments of third parties 716 637
Land and buildings occupied or used by third parties 373 358
Derivatives 26 15
Investment funds 102 88
Asset-backed securities 2 9
Structured debt 42 28
Plan assets based on non-quoted prices:
Equity instruments of third parties 47 25
Debt instruments of Holcim Ltd or subsidiaries 4 5
Debt instruments of third parties 59 25
Land and buildings occupied or used by Holcim Ltd or subsidiaries 0 1
Land and buildings occupied or used by third parties 26 25
Derivatives 7 6
Investment funds 54 35
Structured debt 3 3
Others 382 332
Total plan assets at fair value 2,942 2,628
Effect of asset ceiling

Opening balance as per January 1 0 1
Interest expense or (income) 0 0
Change in effect of asset ceiling excluding interest (income) expense 0 (1)
Closing balance as per December 31 0 0
Principal actuarial assumptions (weighted average) used at the end of the reporting period for defined benefit pension plans
Total Group Switzerland United Kingdom North America
2014 2013 2014 2013 2014 2013 2014 2013
Discount rate in % 2.7% 3.6% 1.2% 2.4% 3.5% 4.6% 4.0% 4.6%
Expected salary increases in % 2.5% 2.7% 1.2% 1.7% 2.9% 3.2% 3.6% 3.5%
Life expectancy in years
after the age of 65 21.4 21.8 21.9 22.5 22.0 22.0 20.4 20.5
Weighted average duration of defined benefit pension plans

Duration of the defined benefit Total Group Switzerland United Kingdom North America
obligation
2014 2013 2014 2013 2014 2013 2014 2013
Weighted average duration in years 13.8 12.9 13.5 11.5 17.0 17.0 11.8 11.8
Sensitivity analysis as per December 31, 2014 on defined benefit pension plans
Impact on the defined benefit Total Group Switzerland United Kingdom North America
obligation
Million CHF Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Discount rate
(1% point change) (444) 552 (196) 242 (135) 174 (62) 77
Expected salary increases
(1% point change) 104 (90) 22 (20) 26 (23) 16 (12)
Life expectancy in years after the age
of 65 (1 year change) 109 (116) 48 (58) 35 (33) 12 (12)
Sensitivity analysis as per December 31, 2013 on defined benefit pension plans
Impact on the defined benefit Total Group Switzerland United Kingdom North America
obligation
Million CHF Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Discount rate
(1% point change) (363) 446 (148) 177 (119) 154 (55) 65
Expected salary increases
(1% point change) 92 (74) 21 (17) 22 (19) 15 (12)
Life expectancy in years after the age
of 65 (1 year change) 87 (97) 36 (45) 27 (27) 11 (11)
Expected contributions by the employer to be paid to the post-

employment benefit plans during the annual period beginning
after the end of the reporting period are CHF 106 million (2013:
105), of which CHF 34 million (2013: 33) related to Switzerland,
CHF 14 million (2013: 14) related to the United Kingdom and
CHF 36 million (2013: 37) related to North America.
33 Share compensation plans

Employee share purchase plan Share option plans
Holcim has an employee share ownership plan for all employ- Two types of share options are granted to senior management
ees of Swiss subsidiaries and some executives from Group com- of the Holcim Group, the ones, which are granted as part of the
panies. This plan entitles employees to acquire a limited annual variable compensation and those, that are allotted to
amount of discounted Holcim shares generally at 70 percent of the Executive Committee upon appointment. In both cases,
the market value based on the prior-month average share price. each option represents the right to acquire one registered
The shares cannot be sold for a period of two years from the share of Holcim Ltd at the market price of the shares at the
date of purchase. The total expense arising from this plan date of grant (see explanations on page 120).
amounted to CHF 5.2 million in 2014 (2013: 4.4).
The contractual term of the first type of option plan is eight
Share plan for management of Group companies years, with immediate vesting but exercise restrictions for a
Part of the variable, performance-related compensation for period of three years following the grant date.
management of Group companies is paid in Holcim shares,
which are granted based on the market price of the share in the The contractual term of the second type of option plan is
following year. The shares cannot be sold by the employee for twelve years and the options have a vesting period (service-
the next three years. The total expense arising from this share related only) of nine years from the date of grant, with sale and
plan amounted to CHF 5.6 million in 2014 (2013: 4.5). pledge restrictions.
Senior management share plans The Group has no legal or constructive obligation to repurchase
Part of the variable, performance-related compensation of or settle the options in cash.
senior management is paid in Holcim shares, which are granted
based on the market price of the share in the following year. Movements in the number of share options outstanding and
The shares cannot be sold nor pledged by the employee for the their related weighted average exercise prices are as follows:
next five years. The total expense arising from these share
plans amounted to CHF 2.2 million in 2014 (2013: 2.3).
Weighted average Number1 Number1

1
exercise price 2014 2013
January 1 CHF 68.65 1,461,609 1,550,131
Granted and vested (individual component of variable compensation) CHF 69.15 99,532 122,770
Granted and vested (single allotment) CHF 71.50 33,550 11,183
Forfeited 0 5,083
Exercised CHF 76.90 182,490 183,842
Lapsed CHF 77.01 252,733 33,550
December 31 CHF 68.85 1,159,468 1,461,609
1
Share options outstanding at the end of the year have the fol-
lowing expiry dates and give the right to acquire one registered
share of Holcim Ltd at the exercise prices as listed below:

2014 2013
2002 2014 CHF 67.15 0 122,737
2003 20152 CHF 67.15 0 33,550
2004 20162 CHF 67.15 23,550 33,550
2005 2014 2 CHF 74.54 0 71,423
2006 2014 CHF 100.69 0 58,573
2007 2015 CHF 125.34 49,674 49,674
2008 2016 CHF 104.34 71,083 71,083
2008 2020 CHF 67.15 33,550 33,550
2009 2017 CHF 38.26 153,482 224,478
2010 2018 CHF 71.15 99,493 131,631
2010 2022 CHF 75.40 33,550 33,550
2010 2022 CHF 81.45 33,550 33,550
2011 2019 CHF 67.15 113,957 149,763
2011 2023 CHF 71.50 67,100 67,100
2012 2020 CHF 58.50 179,894 179,894
2012 2024 CHF 67.15 33,550 33,550
2013 2021 CHF 71.90 122,770 122,770
2013 2025 CHF 71.50 11,183 11,183
2014 2022 CHF 69.15 99,532 0
2014 2026 CHF 71.50 33,550 0
Total 1,159,468 1,461,609
In 2014, options exercised resulted in 182,490 shares (2013: (2013: 0.4). Expected volatility was determined by calculating
183,842) being issued at a weighted average share price of the historical volatility of the Group’s share price over the
CHF 76.90 (2013: 72.52). respective vesting period.
The fair value of options granted for the year 2014 using the All shares granted under these plans are either purchased from
Black Scholes valuation model is CHF 14.44 (2013: 18.26). The the market or derived from treasury shares. The total personnel
significant inputs into the model are the share price and an expense arising from the granting of options based on the indi-
exercise price of CHF 72.05 (2013: 69.15) at the date of grant, an vidual component of variable compensation amounted to
expected volatility of 28.0 percent (2013: 33.5), an expected CHF 2.0 million in 2014 (2013: 2.0).
option life of 6 years (2013: 6), a dividend yield of 1.80 percent
(2013: 1.70) and an annual risk-free interest rate of -0.3 percent
34 Construction contracts
Contract revenue recognized during the year 1,130 1,072
Contract costs incurred and recognized profits (less recognized losses) to date 2,350 2,923
Progress billings to date (2,316) (2,925)
Due from (to) contract customers at the end of the reporting period 34 (2)
Of which:
Due from customers for contract work 69 31
Due to customers for contract work (35) (34)
35 Details of shares
Number of registered shares
December 31 2014 2013
Total outstanding shares 325,867,037 325,563,866
Treasury shares
Reserved for call options 1,159,468 1,461,609
Unreserved 59,871 60,901
Total treasury shares 1,219,339 1,522,510
Total issued shares 327,086,376 327,086,376
Shares out of conditional share capital

Reserved for convertible bonds 1,422,350 1,422,350
Total shares out of conditional share capital 1,422,350 1,422,350
Total shares 328,508,726 328,508,726
The par value per share is CHF 2. The share capital amounts to
nominal CHF 654 million (2013: 654) and the treasury shares
amount to CHF 82 million (2013: 102).
36 Non-controlling interest
Holcim has two Group companies with material non-control-
ling interests. Information regarding these subsidiaries is as
follows:
Material non-controlling interest

Company Principal place Non-controlling Net income2 Total equity2 Dividends paid to
of business interest 1 non-controlling
interest
Million CHF 2014 2013 2014 2013 2014 2013 2014 2013
ACC Limited India 49.7% 49.7% 79 76 771 679 48 44
Ambuja Cements Ltd. India 49.6% 49.5% 97 90 949 818 46 44
1
The non-controlling interest of ACC Limited and Ambuja Cements Ltd. represents the ownership interests, which is equal to the voting rights in these two
companies.
2 Attributable to non-controlling interest.
Set out below is the summarized financial information relating

to ACC Limited and Ambuja Cements Ltd. before intercompany
eliminations.
Statement of financial position

ACC Limited Ambuja Cements Ltd.
Million CHF 2014 2013 2014 2013
Current assets 598 634 942 802
Long-term assets 1,677 1,375 1,562 1,396
Total assets 2,275 2,009 2,504 2,198
Current liabilities 472 358 379 344

Long-term liabilities 252 285 216 203
Total liabilities 724 643 595 546
Net assets 1,551 1,366 1,909 1,651
Statement of income
Million CHF 2014 2013 2014 2013
Net sales 1,714 1,732 1,479 1,437
Net income 158 153 195 182
Statement of cash flows

Million CHF 2014 2013 2014 2013
Cashflow from operating activities 225 208 290 244
(De)Increase in cash and cash equivalents (141) (101) 72 20
37 Contingencies, guarantees and commitments

Contingencies The Competition Commission of India issued an order dated
In the ordinary course of business, the Group is involved in law- June 20, 2012, imposing a penalty of CHF 362 million (INR 23,119
suits, claims of various natures, investigations and proceed- million) on ACC Limited and Ambuja Cements Ltd. concerning
ings, including product liability, commercial, environmental, an alleged breach of competition law by certain cement manu-
health and safety matters, etc. The Group operates in countries facturers in India. The two Indian Holcim Group companies
where political, economic, social and legal developments could contest the allegation and have filed an appeal against the
have an impact on the Group’s operations. The effects of such order before the appropriate authority, which is pending a deci-
risks which arise in the normal course of business are not fore- sion. As per the order, a total deposit of 10% of the penalty
seeable and are therefore not included in the accompanying amounts has been placed with a financial institution by both
consolidated financial statements. Holcim Group companies with a lien in favor of the Competi-
tion Appellate Tribunal. Based on the advice of external legal
At December 31, 2014, the Group’s contingencies amounted to counsel, Holcim believes that it has good grounds for appeal.
CHF 1,037 million (2013: 779), which included contingencies of Accordingly, no provision has been recognized in the statement
CHF 362 million (2013: 333) from ACC Limited and Ambuja of financial position.
Cements Ltd. and of CHF 190 million from Holcim Brazil. It is
possible, but not probable, that the respective legal cases will
result in future liabilities.
On May 28, 2014, the Administrative Council for Economic Guarantees

Defense (CADE) has ruled an order including fines against sev- At December 31, 2014, guarantees issued in the ordinary course
eral Brazilian cement companies. This also applies to Holcim of business amounted to CHF 386 million (2013: 411).
Brazil, which has been fined CHF 190 million (BRL 508 million).
The order relates to the competition law proceedings started in Commitments
2006 which aimed at investigating the conduct of several of In the ordinary course of business, the Group enters into pur-
the leading cement producers in Brazil. In the context of the chase commitments for goods and services, buys and sells
proceeding, Holcim Brazil has always supplied all information investments, associated companies and Group companies or
requested. The company reinforces that it acts lawfully and in portions thereof. It is common practice for the Group to make
accordance with fair competition rules and practices. Holcim offers or receive call or put options in connection with such
Brazil will pursue all available legal steps to defend its position. acquisitions and divestitures.
Accordingly, no provision has been recognized in the statement
of financial position. At December 31, 2014, the Group’s commitments amounted to
CHF 1,351 million (2013: 1,284), of which CHF 543 million
There are no further single matters pending that the Group (2013: 759) related to the purchase of property, plant and equip-
expects to be material in relation to the Group’s business, ment.
financial position or results of operations.
On November 7, 2014, Group Holcim signed a Share and Loan
Purchase Agreement where it agreed to purchase an additional
15% interest in United Cement Company of Nigeria Ltd (“Uni-
cem”) and also agreed to purchase shareholder loans to Unicem
in 2015. The total estimate of the financial commitment relat-
ing to these transactions amounts to CHF 146 million (USD 148
million).
38 Monetary net current assets by currency

Million CHF Cash and Accounts Trade Current Other Total Total
cash receivable accounts financial current 2014 2013
equivalents payable liabilities liabilities 1
CHF 172 130 53 337 239 (327) (84)

USD 349 420 429 491 311 (462) (638)
EUR 111 534 313 264 305 (237) (1,835)
GBP 59 343 351 29 167 (145) (161)
AUD 99 226 98 351 170 (294) (43)
CAD 38 152 159 85 69 (123) (78)
IDR 12 71 82 68 59 (126) (30)
INR 965 187 184 114 542 312 428
MAD 8 84 41 217 53 (219) 57
MXN 19 108 42 138 97 (150) (172)
PHP 108 49 55 35 55 12 61
Others 209 391 294 373 253 (320) (201)
Total 2,149 2,695 2,101 2,502 2,320 (2,079) (2,696)
1
Beside "Other current liabilities", this position includes as well "Current income tax liabilities", "Short-term provisions" and "Liabilities directly associated with
assets classified as held for sale".
39 Cash flow from investing activities

Purchase of property, plant and equipment net
Replacements (947) (923)
Proceeds from sale of property, plant and equipment 209 205
Capital expenditures on property, plant and equipment to maintain
productive capacity and to secure competitiveness (738) (719)
Expansion investments (1,020) (1,282)
Total purchase of property, plant and equipment net (A) (1,759) (2,000)
Acquisition of participation in Group companies (net of cash and cash equivalents acquired)1 (2) (8)
Disposal of participation in Group companies (net of cash and cash equivalents disposed of)1 36 407
Purchase of financial assets, intangible and other assets

Increase in financial investments including associates and joint ventures (4) (23)
Increase in other financial assets, intangible and other assets (296) (240)
Total purchase of financial assets, intangible and other assets (300) (263)
Disposal of financial assets, intangible and other assets

Decrease in financial investments including associates and joint ventures 46 11
Decrease in other financial assets, intangible and other assets 254 188
Total disposal of financial assets, intangible and other assets 300 199
Total disposal (purchase) of financial assets, intangible and other assets and businesses net (B) 35 336
Total cash flow from investing activities (A + B) (1,724) (1,665)

1
Including goodwill.
Cash flow from acquisitions and disposals of Group companies

Acquisitions Disposals
Million CHF 2014 2013 2014 2013
Current assets 0 (9) 2 124
Property, plant and equipment (2) (7) 4 450
Other assets 0 0 0 30
Current liabilities 0 6 0 (254)
Long-term provisions 0 0 0 (27)
Other long-term liabilities 0 1 0 (26)
Net assets (2) (9) 6 298
Non-controlling interest 0 0 (1) (98)
Net assets (acquired) disposed (2) (9) 5 201
Goodwill (acquired) disposed 0 (4) 2 48
Fair value of previously held (retained) equity interest 0 1 0 0
Net gain (loss) on disposals 0 0 32 156
Total (purchase) disposal consideration (2) (12) 39 405
Acquired (disposed) cash and cash equivalents 0 1 0 2
Payables and loan notes 0 4 (2) 0
Net cash flow (2) (8) 36 407
40 Transactions and relations with members

of the Board of Directors and senior management
Key management compensation Compensation for former members of governing bodies
Board of Directors In the year under review, compensation in the amount of
In 2014, twelve non-executive members of the Board of Direc- CHF 3.5 million (2013: 2.8) was paid to six (2013: ten) former
tors received a total remuneration of CHF 3.7 million (2013: 3.4) members of senior management.
in the form of short-term employee benefits of CHF 2.3 million
(2013: 2.2), post-employment benefits of CHF 0.1 million Loans
(2013: 0.1), share-based payments of CHF 1.0 million (2013: 0.9) As at December 31, 2014, and December 31, 2013, there were no
and other compensation of CHF 0.2 million (2013: 0.2). loans outstanding, to members of the Board of Directors and
members of senior management.
Senior management
The total annual compensation for the 16 members of senior Other transactions
management (including CEO) amounted to CHF 32.3 million As part of the employee share purchase plan, Holcim manages
(2013: 25.9). This amount comprises of base salary and variable employees’ shares. It sells and purchases Holcim Ltd shares to
cash compensation of CHF 19.6 million (2013: 15.1), share-based and from employees and on the open market. In this context,
compensations of CHF 5.0 million (2013: 3.7), employer contri- the company purchased Holcim Ltd shares of CHF 0.1 million
butions to pension plans of CHF 7.2 million (2013: 6.6) and (2013: 0.1) at the stock market price from members of senior
“Others” compensation of CHF 0.5 million (2013: 0.5). The base management.
salary and the variable cash compensation are disclosed,
including foreign withholding tax. Further included in the No compensation was paid or loans granted to parties closely
contribution to pension plans are the employer’s contributions related to members of the governing bodies.
to social security (AHV/IV).
41 Other information 43 Authorization of the financial statements for issuance

On April 7, 2014, Holcim Ltd and Lafarge S.A. announced their The consolidated financial statements were authorized for
intention to combine the two companies through a merger. issuance by the Board of Directors of Holcim Ltd on February
The proposed combination would be structured as a public 20, 2015, and are subject to shareholder approval at the annual
offer filed by Holcim for all outstanding shares of Lafarge on general meeting of shareholders scheduled for April 13, 2015.
the basis of a 1 for 1 exchange ratio. The combination is condi-
tional upon, amongst other things, execution of definitive docu-
mentation, obtaining required approvals from the relevant
regulatory authorities and other customary authorizations and
approval of the shareholders of Holcim Ltd and is expected to
be completed by the end of the first half of 2015. In 2014,
Holcim has incurred merger costs of CHF 77 million.
Holcim and Lafarge have completed all necessary notifications

with regulatory authorities worldwide. On December 15, 2014,
Holcim and Lafarge received clearance from the European
Commission for their proposed merger.
As part of the proposed merger, Holcim and Lafarge announced

on February 2, 2015, that they have entered exclusive negotia-
tions, further to a binding commitment made by CRH, regarding
the sale of several assets.
42 Events after the reporting period

On January 15, 2015, the Swiss National Bank announced to
abandon its cap on the Swiss franc against the Euro. As of this
date, the major currencies relevant for Group Holcim (EUR and
USD) devalued considerably against the Swiss franc. However,
the event described had no impact on the Group’s financial
statements for the year ended December 31, 2014.
Principal companies of the Holcim Group

Region Company Place Nominal share capital Participation
in 000 (voting right)
Asia Pacific ACC Limited India INR 1,879,518 50.3%
Ambuja Cements Ltd. India INR 3,099,492 50.4%
Holcim (Lanka) Ltd Sri Lanka LKR 2,858,021 98.9%
Holcim Cement (Bangladesh) Ltd. Bangladesh BDT 8,824 74.2%
Holcim (Malaysia) Sdn Bhd Malaysia MYR 10,450 100.0%
Holcim (Singapore) Ltd Singapore SGD 44,322 90.8%
PT Holcim Indonesia Tbk. Indonesia IDR 3,645,034,000 80.6%
Holcim (Vietnam) Ltd Vietnam USD 189,400 65.0%
Holcim Philippines Inc. Philippines PHP 6,452,099 85.8%
Cement Australia Holdings Pty Ltd1 Australia AUD 390,740 50.0%
Holcim (Australia) Holdings Pty Ltd Australia AUD 1,413,929 100.0%
Holcim (New Zealand) Ltd New Zealand NZD 22,004 100.0%
Latin America Holcim Mexico S.A. de C.V. Mexico MXN 10,513,086 100.0%
Holcim El Salvador S.A. de C.V. El Salvador USD 78,178 95.2%
Holcim (Costa Rica) S.A. Costa Rica CRC 8,577,371 60.0%
Holcim (Nicaragua) S.A. Nicaragua NIO 19,469 80.0%
Holcim (Colombia) S.A. Colombia COP 72,536,776 99.8%
Holcim (Ecuador) S.A. Ecuador USD 102,405 92.2%
Holcim (Brasil) S.A. Brazil BRL 455,259 99.9%
Holcim (Argentina) S.A. Argentina ARS 352,057 79.6%
Cemento Polpaico S.A. Chile CLP 7,675,262 54.3%
Europe Holcim (France) S.A.S. France EUR 96,971 100.0%
Holcim (Belgique) S.A. Belgium EUR 750,767 100.0%
Holcim (España) S.A. Spain EUR 177,772 99.9%
Holcim Trading S.A. Spain EUR 19,600 100.0%
Aggregate Industries Ltd United Kingdom GBP 0 100.0%
Holcim (Deutschland) AG Germany EUR 47,064 100.0%
Holcim (Süddeutschland) GmbH Germany EUR 6,450 100.0%
Holcim (Schweiz) AG Switzerland CHF 71,100 100.0%
Holcim Group Services Ltd Switzerland CHF 1,000 100.0%
Holcim Technology Ltd Switzerland CHF 10,000 100.0%
Holcim Gruppo (Italia) S.p.A. Italy EUR 115,103 100.0%
Holcim (Česko) a.s. Czech Republic CZK 486,297 100.0%
Holcim (Slovensko) a.s. Slovakia EUR 283,319 99.7%
Holcim Magyarország Kft. Hungary HUF 600,000 99.9%
Holcim (Hrvatska) d.o.o. Croatia HRK 243,852 99.9%
Holcim (Serbia) d.o.o. Serbia RSD 493,837 100.0%
Holcim (Romania) S.A. Romania RON 274,243 99.7%
Holcim (Bulgaria) AD Bulgaria BGN 1,093 100.0%
Holcim (Rus) OAO Russia RUB 8,147 100.0%
Holcim (Azerbaijan) O.J.S.C. Azerbaijan AZN 31,813 70.2%
1
Joint operation
Region Company Place Nominal share capital Participation

North America Holcim (US) Inc. USA USD 0 100.0%
Aggregate Industries Management Inc. USA USD 121 100.0%
Holcim (Canada) Inc. Canada CAD 91,201 100.0%
Africa Middle East Holcim (Maroc) S.A. Morocco MAD 494,626 61.0%
Ciments de Guinée S.A. Guinea GNF 46,393,000 59.9%
Société de Ciments et Matériaux Ivory Coast XOF 912,940 99.9%
Holcim (Liban) S.A.L. Lebanon LBP 195,160,400 52.1%
Holcim (Outre-Mer) S.A.S. La Réunion EUR 37,748 100.0%
Listed Group companies

Region Company Domicile Place of listing Market capitalization Security
at December 31, 2014 code number
in local currency
Asia Pacific ACC Limited Mumbai Mumbai INR 262,731 million INE012A01025
Ambuja Cements Ltd. Mumbai Mumbai INR 354,659 million INE079A01024
PT Holcim Indonesia Tbk. Jakarta Jakarta IDR 16,743,437 million ID1000072309
Holcim Philippines Inc. Manila Manila PHP 96,652 million PHY3232G1014
Latin America Holcim (Costa Rica) S.A. San José San José CRC 183,985 million CRINC00A0010
Holcim (Ecuador) S.A. Guayaquil Quito, Guayaquil USD 1,536 million ECP516721068
Holcim (Argentina) S.A. Buenos Aires Buenos Aires ARS 1,901 million ARP6806N1051
Cemento Polpaico S.A. Santiago Santiago CLP 98,311 million CLP2216J1070
Africa Middle East Holcim (Maroc) S.A. Rabat Casablanca MAD 9,418 million MA0000010332
Holcim (Liban) S.A.L. Beirut Beirut USD 298 million LB0000012833
Principal finance and holding companies

Company Place Nominal share capital Participation
Holcim Ltd1 Switzerland CHF 654,173 100.0%
Aggregate Industries Holdings Limited United Kingdom GBP 339,563 100.0%
Holcibel S.A. Belgium EUR 1,366,000 100.0%
Holchin B.V. Netherlands EUR 20 100.0%
Holcim Auslandbeteiligungs GmbH (Deutschland) Germany EUR 2,557 100.0%
Holcim Beteiligungs GmbH (Deutschland) Germany EUR 102,000 100.0%
Holcim Capital Corporation Ltd. Bermuda USD 2,630 100.0%
Holcim Capital México, S.A. de C.V. Mexico MXN 20,050 100.0%
Holcim Capital (Thailand) Ltd. Thailand THB 1,100 100.0%
Holcim European Finance Ltd. Bermuda EUR 25 100.0%
Holcim Finance (Australia) Pty Ltd Australia AUD 0 100.0%
Holcim Finance (Belgium) S.A. Belgium EUR 62 100.0%
Holcim Finance (Canada) Inc. Canada CAD 0 100.0%
Holcim Finance (Luxembourg) S.A. Luxembourg EUR 1,900 100.0%
Holcim GB Finance Ltd. Bermuda GBP 8 100.0%
Holcim (India) Private Limited India INR 56,903,850 100.0%
Holcim Investments (France) SAS France EUR 15,552 100.0%
Holcim Investments (Spain) S.L. Spain EUR 173,834 100.0%
Holcim Overseas Finance Ltd. Bermuda CHF 16 100.0%
Holcim Participations (UK) Limited United Kingdom GBP 690,000 100.0%
Holcim Participations (US) Inc. USA USD 67 100.0%
Holcim US Finance S.à r.l. & Cie S.C.S. Luxembourg USD 20 100.0%
Holderfin B.V. Netherlands EUR 3,772 100.0%
Holderind Investments Ltd. Mauritius USD 130,000 100.0%
Vennor Investments Pty Ltd Australia AUD 30,115 100.0%
1 Holcim Ltd, Zürcherstrasse 156, CH-8645 Jona
Principal joint ventures and associated companies

Region Company Country of incorporation Participation
or residence (voting right)
Asia Pacific Huaxin Cement Co. Ltd. China 41.9%
Siam City Cement Public Company Limited 1 Thailand 27.5%
Africa Middle East Lafarge Cement Egypt S.A.E. Egypt 43.7%
United Cement Company of Nigeria Ltd Nigeria 35.0%
1
Joint venture
Report of the statutory auditor on the consolidated financial statements

As statutory auditor, we have audited the consolidated financial statements of Holcim Ltd, which comprise the consolidated state-
ment of income, consolidated statement of comprehensive earnings, consolidated statement of financial position, consolidated
statement of changes in equity, consolidated statement of cash flows and notes on pages 151 to 221 for the year ended December
31, 2014.
Board of Directors’ responsibility

The Board of Directors is responsible for the preparation of the consolidated financial statements in accordance with International
Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing and
maintaining an internal control system relevant to the preparation and fair presentation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and
applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit
in accordance with Swiss law, Swiss Auditing Standards and International Standards on Auditing. Those standards require that we
plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material
misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the con-
solidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers the internal control system relevant to the entity’s preparation and fair presentation of the consolidated
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropri-
ateness of the accounting policies used and the reasonableness of accounting estimates made as well as evaluating the overall
presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appro-
priate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements for the year ended December 31, 2014, give a true and fair view of the finan-
cial position, the results of operations and the cash flows in accordance with the International Financial Reporting Standards (IFRS)
and comply with Swiss law.
Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence
(Art. 728 Code of Obligations (CO) and Art. 11 AOA) and that there are no circumstances incompatible with our independence. In
accordance with Art. 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists,
which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of
Directors. We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young Ltd

Licensed Audit Expert Licensed Audit Expert
Auditor in charge
F I N A N C I A L I N F O R M A T I O N H O L D I N G C O M PA N Y R E S U LT S 223
HOLDING
C O M P A N Y R E S U LT S
224 F I N A N C I A L I N F O R M A T I O N H O L D I N G C O M PA N Y R E S U LT S
Statement of income Holcim Ltd

Financial income 418.3 1,019.1
Other ordinary income 277.2 277.3
Extraordinary income 0.0 52.7
Total income 695.5 1,349.1
Financial expenses (73.0) (112.0)

Other ordinary expenses (219.5) (145.9)
Taxes (25.7) (26.3)
Total expenses (318.2) (284.2)
Net income 377.3 1,064.9

Balance Sheet Holcim Ltd

Million CHF 31.12.2014 31.12.2013
Cash and cash equivalents 81.5 72.6
Accounts receivable – Group companies 64.5 31.2
Prepaid expenses and other current assets 8.5 3.7
Total current assets 154.5 107.5
Loans – Group companies 1,772.4 1,607.5

Financial investments – Group companies 18,411.8 18,531.1
Other financial investments 84.9 85.9
Total long-term assets 20,269.1 20,224.5
Total assets 20,423.6 20,332.0
Current financing liabilities – Group companies 52.2 209.0

Current financing liabilities – Third parties 250.0 0.0
Other current liabilities 93.5 29.9
Total current liabilities 395.7 238.9
Long-term financing liabilities – Group companies 231.0 0.0

Outstanding bonds 2,025.0 2,275.0
Total long-term liabilities 2,256.0 2,275.0
Total liabilities 2,651.7 2,513.9
Share capital 654.2 654.2
Legal reserves
– Ordinary reserves 2,450.3 2,430.5
– Capital contribution reserves 5,717.1 6,140.6
– Reserves for treasury shares 81.8 101.6
Free reserves 7,662.8 6,862.8
Retained earnings 1,205.7 1,628.4

Total shareholders’ equity 17,771.9 17,818.1
Total liabilities and shareholders’ equity 20,423.6 20,332.0

Change in shareholders’ equity Holcim Ltd

Million CHF Share Capital Ordinary Capital Reserves for Free reserves Retained Total
reserves contribution treasury earnings
reserves shares
Equity as at January 1, 2014 654.2 2,430.5 6,140.6 101.6 6,862.8 1,628.4 17,818.1
Decrease reserves for treasury shares 19.8 (19.8)
Allocation to free reserves (423.5) 423.5
Payout (423.5) (423.5)
Allocation to free reserves 800.0 (800.0)
Net income of the year 377.3 377.3
Equity as at December 31, 2014 654.2 2,450.3 5,717.1 81.8 7,662.8 1,205.7 17,771.9
Equity as at January 1, 2013 654.2 2,417.8 6,514.9 114.3 6,062.8 1,363.5 17,127.5
Decrease reserves for treasury shares 12.7 (12.7)
Allocation to free reserves (374.3) 374.3
Payout (374.3) (374.3)
Allocation to free reserves 800.0 (800.0)
Net income of the year 1,064.9 1,064.9
Equity as at December 31, 2013 654.2 2,430.5 6,140.6 101.6 6,862.8 1,628.4 17,818.1
Notes to the financial statements of Holcim Ltd
Contingent liabilities 31.12.2014 31.12.2013

Million CHF
Holcim Capital Corporation Ltd.
Guarantees in respect of holders of
6.59% USD 165 million private placement due in 2014 0 160
6.88% USD 250 million bonds due in 2039 2721 245
Holcim Capital México, S.A. de C.V.
3.86% MXN 1,500 million bonds due in 2015 1112 112
3.98% MXN 800 million bonds due in 2016 592 60
Holcim Capital (Thailand) Ltd.
3.52% THB 1,220 million bonds due in 2015 403 36
Holcim Finance (Australia) Pty Ltd
7.00% AUD 250 million bonds due in 2015 2234 218
Holcim Finance (Belgium) S.A.
Commercial Paper Program, guarantee based on utilization, EUR 500 million maximum 376 0
Holcim Finance (Canada) Inc.
6.91% CAD 10 million private placement due in 2017 105 10
3.65% CAD 300 million bonds due in 2018 2815 276
Holcim Finance (Luxembourg) S.A.
4.38% EUR 600 million bonds due in 2014 0 809
Holcim GB Finance Ltd.
8.75% GBP 300 million bonds due in 2017 5087 485
Holcim Overseas Finance Ltd.
3.38% CHF 425 million bonds due in 2021 468 468
Holcim US Finance S.à r.l. & Cie S.C.S.
Commercial Paper Program, guarantee based on utilization, USD 1,000 million maximum 2631 439
Guarantees for committed credit lines, utilization CHF 283 million (2013: 209) 3,004 3,697
Other guarantees 16 20
Holcim Ltd is part of a value added tax group and therefore jointly liable to the Swiss Federal Tax Administration for the value added
tax liabilities of the other members.
1 4 7
Exchange rate USD: CHF 0.9891. Exchange rate AUD: CHF 0.8104. Exchange rate GBP: CHF 1.5391.
2 5
Exchange rate MXN: CHF 0.0672. Exchange rate CAD: CHF 0.8522.
3 Exchange rate THB: CHF 0.0301. 6 Exchange rate EUR: CHF 1.2027.
Issued bonds
The outstanding bonds and private placements as of December
31, 2014, are listed on pages 199 and 200.
Principal investments
The principal direct and indirect investments of Holcim Ltd are
listed under the heading “Principal companies of the Holcim
Group” on pages 219 to 221.
Treasury Shares Number Price per share in CHF Million CHF

01.01.2014 Treasury shares 1,522,510 66.72 101.6
01.01. to 31.12.2014 Purchases 61,542 74.92 4.6
01.01. to 31.12.2014 Sales (364,713) 62.45 (24.4)
31.12.2014 Treasury shares 1,219,339 67.08 81.8
01.01.2013 Treasury shares 1,736,538 65.81 114.3

01.01. to 31.12.2013 Purchases 163,846 75.20 12.3
01.01. to 31.12.2013 Sales (377,874) 62.14 (25.0)
31.12.2013 Treasury shares 1,522,510 66.72 101.6
Conditional share capital Number Price per share in CHF Million CHF
01.01.2014 Conditional shares par value 1,422,350 2.00 2.8
01.01. to 31.12.2014 Movement 0 0 0

01.01. to 31.12.2013 Movement 0 0 0
Share interests of Board of Directors and senior management

As of December 31, 2014, the members of the Board of Directors
and senior management of Holcim held directly and
indirectly in the aggregate 66,017,050 registered shares (2013:
66,088,807) and no rights to acquire further registered shares
and 548,184 call options on registered shares (2013: 550,151).

of shares 2014
Wolfgang Reitzle Chairman, 2,241
Adrian Loader Member, 10,493
Nomination and Compensation Committee Chairman
Jürg Oleas Member 0
Hanne Sørensen Member 1,015

of shares 2013
Rolf Soiron Chairman, 39,514
Erich Hunziker Deputy Chairman, 13,551
Nomination & Compensation Committee Chairman
Adrian Loader Member 9,315
Andreas von Planta Member 13,309
Wolfgang Reitzle Member 1,063
Hanne Sørensen Member 230
1
From allocation, shares are subject to a five-year sale and pledge restriction period.
Shares and options owned by Senior Management held a total of 548,184 share options; these arose as a
As of December 31, 2014, members of Senior Manage- result of the participation and compensation schemes
ment held a total of 173,707 registered shares of various years. Options are issued solely on registered
in Holcim Ltd. This figure includes both privately shares in Holcim Ltd. One option entitles the holder to
acquired shares and those allocated under the subscribe to one registered share in Holcim Ltd.
Group’s participation and compensation schemes.
Furthermore, at the end of 2014, Senior Management
Urs Bleisch Member of the Executive Committee 2 3,921 38,563
Daniel Bach Area Manager 3 1,785 0
Alain Bourguignon Area Manager3 4,358 0
Xavier Dedullen Corporate Functional Manager 333 2,373
Aidan Lynam Corporate Functional Manager 4 8,360 16,056
Paul Hugentobler Member of the Executive Committee 40,843 96,050
Aidan Lynam Area Manager 7,482 12,718
Onne van der Weijde Area Manager 3,152 3,378
Urs Bleisch Corporate Functional Manager 3,306 939
Xavier Dedullen Corporate Functional Manager 0 0
1 From allocation, shares are subject to a five-year and options to a three-year and nine-year sale restriction period respectively.
2 Since October 1, 2014.
3 Since January 1, 2014.
4 Since February 6, 2014.

Movements in the number of share options outstand-

ing held by Senior Management are as follows:
Number1 Number1
2014 2013
January 1 550,151 508,587
Decrease due to change in senior management 6,116 0
Decrease due to retirements 70,499 0
Granted and vested (individual component of variable compensation) 99,532 96,480
Granted and vested (single allotment) 33,550 11,183
Exercised 11,530 66,099
Lapsed 46,904 0
December 31 548,184 550,151
1
The share options outstanding held by senior management

(including former members) at year-end 2014 have the following
expiry dates and exercise prices:

2014 2013
2002 2014 CHF 67.15 0 122,737
2003 20152 CHF 67.15 0 33,550
2004 20162 CHF 67.15 23,550 33,550
2005 2014 2 CHF 74.54 0 71,423
2006 2014 CHF 100.69 0 58,573
2007 2015 CHF 125.34 49,674 49,674
2008 2016 CHF 104.34 71,083 71,083
2008 2020 CHF 67.15 33,550 33,550
2009 2017 CHF 38.26 153,482 224,478
2010 2018 CHF 71.15 99,493 131,631
2010 2022 CHF 75.40 33,550 33,550
2010 2022 CHF 81.45 33,550 33,550
2011 2019 CHF 67.15 113,957 149,763
2011 2023 CHF 71.50 67,100 67,100
2012 2020 CHF 58.50 179,894 179,894
2012 2024 CHF 67.15 33,550 33,550
2013 2021 CHF 71.90 122,770 122,770
2013 2025 CHF 71.50 11,183 11,183
2014 2022 CHF 69.15 99,532 0
2014 2026 CHF 71.50 33,550 0
Total 1,159,468 1,461,609
In 2014, one new Executive Committee member was

granted in total 33,550 options.
Important shareholders1 The information disclosed complies with Swiss legal require-
As per December 31, 2014, Thomas Schmidheiny directly ments. Further information can be found in the remuneration
and indirectly held 65,777,912 shares (20.11 percent) (2013: report on pages 117 to 129 and in the notes to the consolidated
65,776,734 shares or 20.11 percent) . Eurocement Holding AG
2
financial statements on pages 175 to 218. Specific information
declared holdings of 35,402,772 shares (10.82 percent) as per in accordance with Art. 663b para. 12 (risk assessment) and Art.
December 31, 2014 (2013: 35,402,772 shares or 10.82 percent). 663c para. 3 (transparency law) of the Swiss Code of Obliga-
Harris Associates L.P. declared holdings of 16,163,815 shares tions are disclosed in the section “Risk management” on pages
(4.94 percent) as per April 14, 2014 (2013: 16,711,883 shares or 167 to 173.
5.11 percent), Harbour International Fund declared holdings of
9,840,977 shares (3.01 percent) as per August 4, 2014 and Black-
Rock Inc. declared holdings of 9,582,830 shares (2.93 percent)
as per January 26, 2015 (April 9, 2014: 11,398,633 shares or 3.48
percent).
Share capital 2014 2013

Shares Number Million CHF Number Million CHF
Registered shares of CHF 2 par value 327,086,376 654.2 327,086,376 654.2
Total 327,086,376 654.2 327,086,376 654.2
Appropriation of retained earnings 2014 2013

Million CHF Million CHF
Retained earnings brought forward 828.4 563.5
Net income of the year 377.3 1 064.9
Retained earnings available for annual general meeting of shareholders 1,205.7 1,628.4
The Board of Directors proposes to the annual general meeting of
shareholders the following appropriation:
Allocation to free reserves (600.0) (800.0)

Balance to be carried forward 605.7 828.4
Payout from capital contribution reserves

The Board of Directors proposes to the annual general meet-
ing of shareholders an appropriation from capital contribution
reserves to free reserves and payout of CHF 1.30 per registered
share up to an amount of CHF 425 million3.
2014 2013
Cash payout CHF Cash payout CHF
Payout per share, gross 1.30 1.30
Less withholding tax 0 0
Payout per share, net 1.30 1.30
1
Shareholding of more than 3 percent.
2
Included in share interests of Board of Directors and senior management.
3
There is no payout on treasury shares held by Holcim. On January 1, 2015, treasury holdings amounted to 1,219,339 registered shares.
Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the financial statements of Holcim Ltd, which comprise the statement of income, balance
sheet, change in shareholders’ equity and notes presented on pages 224 to 232 for the year ended December 31, 2014.
Board of Directors’ responsibility

The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss
law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an inter-
nal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to
fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making
accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accord-
ance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reason-
able assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s
preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of accounting estimates made as well as evaluating
the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appro-
priate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended December 31, 2014, comply with Swiss law and the company’s articles
of incorporation.
Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence
(Art. 728 Code of Obligations (CO) and Art. 11 AOA) and that there are no circumstances incompatible with our independence.
In accordance with Art. 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists,
which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available retained earnings complies with Swiss law and the company’s
articles of incorporation. We recommend that the financial statements submitted to you be approved.
Ernst & Young Ltd

Licensed Audit Expert Licensed Audit Expert
Auditor in charge
234 F I N A N C I A L I N F O R M A T I O N C O M PA N Y D ATA
Principal companies of the Holcim Group

ACC Limited, India Holcim Cement (Bangladesh) Ltd., Bangladesh
Chief Executive: Harish Badami Chief Executive: Sumanta Pandit
Personnel: 11,827 Personnel: 636
Production capacity: 30.1 million t of cement Production capacity: 1.9 million t of cement
Bargarh plant Meghnaghat grinding plants
Chaibasa plant Mongla grinding plant
Chanda plant
Gagal plants
Jamul plant Holcim (Malaysia) Sdn Bhd, Malaysia
Kymore plant Chief Executive: Mahanama Ralapanawa
Lakheri plant Personnel: 291
Madukkarai plant Production capacity: 1.2 million t of cement
Wadi plants Pasir Gudang grinding plant
Damodhar grinding plant Aggregates operations
Kudithini grinding plant Ready-mix concrete operations
Sindri grinding plant
Thondebhavi grinding plant
Tikaria grinding plant Holcim (Singapore) Ltd, Singapore
Ready-mix concrete operations Chief Executive: Sujit Ghosh
Personnel: 237
Ready-mix concrete operations
Ambuja Cements Ltd., India
Chief Executive: Ajay Kapur
Personnel: 8,299 PT Holcim Indonesia Tbk., Indonesia
Production capacity: 32.1 million t of cement Chief Executive: Gary Schutz
Ambujanagar plants Personnel: 2,783
Bhatapara plants Production capacity: 11.6 million t of cement
Darlaghat plants Cilacap plant
Maratha plant Narogong plant
Rabriyawas plant Tuban plant
Bhatinda grinding plant Ciwandan grinding plant
Dadri grinding plant Aggregates operations
Farakka grinding plant Ready-mix concrete operations
Nalagarh grinding plant
Roorkee grinding plant
Ropar grinding plant Holcim (Vietnam) Ltd, Vietnam
Sankrail grinding plant Chief Executive: Bao C. Nguyen
Surat grinding plant Personnel: 1,241
Production capacity: 5.2 million t of cement
Hon Chong plant
Holcim (Lanka) Ltd, Sri Lanka Cat Lai grinding plant
Chief Executive: Philippe Richart Hiep Phuoc grinding plant
Cement Personnel: 666 Thi Vai grinding plant
Production capacity: 1.7 million t of cement Ready-mix concrete operations
Aggregates Palavi plant
Ruhunu grinding plant
Other construction
materials
and services
F I N A N C I A L I N F O R M A T I O N C O M PA N Y D ATA 235
Holcim Philippines Inc., Philippines Holcim Mexico S.A. de C.V., Mexico

Chief Executive: Eduardo A. Sahagun Chief Executive: Rodolfo Montero
Personnel: 1,813 Personnel: 2,894
Bulacan plant Acapulco plant
Davao plant Apaxco plant
La Union plant Hermosillo plant
Lugait plant Macuspana plant
Mabini grinding plant Orizaba plant
Ready-mix concrete operations Ramos Arizpe plant
Tecomán plant
Aggregates operations
Cement Australia Holdings Pty Ltd and Ready-mix concrete operations
Cement Australia Partnership, Australia
Chief Executive: Rob Davies
Personnel: 894 Holcim El Salvador S.A. de C.V., El Salvador
Production capacity: 5.3 million t of cement Chief Executive: Dolores Prado
Gladstone plant Personnel: 561
Railton plant Production capacity: 1.7 million t of cement
Bulwer Island grinding plant El Ronco plant
Port Kembla grinding plant Maya plant
Holcim (Australia) Holdings Pty Ltd, Australia

Chief Executive: Mark Campbell Holcim (Costa Rica) S.A., Costa Rica
Personnel: 2,981 Chief Executive: Manrique Arrea
Aggregates operations Personnel: 522
Ready-mix concrete operations Production capacity: 1.1 million t of cement
Concrete products operations Cartago plant
Holcim (New Zealand) Ltd, New Zealand
Chief Executive: Mark Campbell
Personnel: 444 Holcim (Nicaragua) S.A., Nicaragua
Production capacity: 0.5 million t of cement Chief Executive: Henry Rathgeb
Westport plant Personnel: 162
Aggregates operations Production capacity: 0.3 million t of cement
Nagarote grinding plant
Aggregates operation
Holcim (Colombia) S.A., Colombia

Chief Executive: Jaime Hill
Personnel: 900
Nobsa plant
Holcim (Ecuador) S.A., Ecuador Holcim (France) S.A.S., France

Chief Executive: Nick Traber Chief Executive: Gérard Letellier
Personnel: 1,231 Personnel: 1,771
Guayaquil plant Altkirch plant
Latacunga grinding plant Héming plant
Aggregates operations Lumbres plant
Ready-mix concrete operations Rochefort plant
Dannes grinding plant
Dunkerque grinding plant
Holcim (Brasil) S.A., Brazil Grand-Couronne grinding plant
Chief Executive: Otmar Hübscher La Rochelle grinding plant
Personnel: 1,626 Aggregates operations
Production capacity: 5.4 million t of cement Ready-mix concrete operations
Barroso plant
Cantagalo plant
Pedro Leopoldo plant Holcim (Belgique) S.A., Belgium
Sorocaba grinding plant Chief Executive
Vitória grinding plant Belgium/Netherlands: Louis Beauchemin
Aggregates operations Personnel: 912
Ready-mix concrete operations Production capacity: 2.2 million t of cement
Obourg plant
Holcim (Argentina) S.A., Argentina Ready-mix concrete operations
Chief Executive: Oliver Osswald
Personnel: 1,346
Production capacity: 4.6 million t of cement Holcim (España) S.A., Spain
Capdeville plant Chief Executive: Feliciano Gonzalez Muñoz
Malagueño plant Personnel: 533
Puesto Viejo plant Production capacity: 3.9 million t of cement
Campana grinding plant Carboneras plant
Yocsina grinding plant Gádor plant
Aggregates operation Jerez plant
Ready-mix concrete operations Yeles grinding plant
Cemento Polpaico S.A., Chile
Chief Executive: Mauricio Echeverri
Personnel: 1,093 Holcim Trading S.A., Spain
Production capacity: 2.3 million t of cement Chief Executive: Roland van Wijnen
Cerro Blanco plant Personnel: 83
Coronel grinding plant Seaborne clinker and cement trading
Cement Mejillones grinding plant and others
Aggregates Ready-mix concrete operations
Other construction
materials
and services
Aggregate Industries Ltd, United Kingdom Holcim Group Services Ltd, Switzerland
Chief Executive: Pat Ward Chief Executive: Urs Bleisch
Personnel: 4,008 Personnel: 366
Aggregates Management services
Aggregate Bagging
Aggregate Industries Scotland
Asphalt Holcim Technology Ltd, Switzerland
Building Products Chief Executive: Urs Bleisch
Cementitious Materials Personnel: 346
Commerical Landscaping Management services
Concrete
Contracting
Domestic Landscaping Holcim Gruppo (Italia) S.p.A., Italy
Express Asphalt Chief Executive: Kaspar Wenger
London Concrete Personnel: 397
Ronez Production capacity: 4.2 million t of cement
Spade Oak Ternate plant
Merone grinding plant
Ravenna grinding plant
Holcim (Deutschland) AG, Germany Aggregates operations
Chief Executive: Urs Fankhauser Ready-mix concrete operations
Personnel: 903
Höver plant Holcim (Česko) a.s., Czech Republic
Lägerdorf plant Chief Executive: Ottó Magera
Bremen grinding plant Personnel: 438
Prachovice plant
Holcim (Süddeutschland) GmbH, Germany Ready-mix concrete operations
Chief Executive: Kaspar Wenger
Country Manager: Urs Kern
Personnel: 349 Holcim (Slovensko) a.s., Slovakia
Production capacity: 1.1 million t of cement Chief Executive: Richard Skene
Dotternhausen plant Personnel: 932
Ready-mix concrete operations Rohožník plant
Turňa plant
Holcim (Schweiz) AG, Switzerland Ready-mix concrete operations
Chief Executive: Kaspar Wenger
Personnel: 1,154
Production capacity: 3.4 million t of cement Holcim Magyarország Kft., Hungary
Eclépens plant Chief Executive: Richard Skene
Siggenthal plant Personnel: 211
Untervaz plant Cement distribution
Aggregates operations Ready-mix concrete operations
Holcim (Hrvatska) d.o.o., Croatia Holcim (Azerbaijan) O.J.S.C., Azerbaijan

Chief Executive: Alan Šišinački Chief Executive: Rossen Papazov
Personnel: 290 Personnel: 412
Koromač no plant Garadagh plant
Holcim (US) Inc., USA
Chief Executive: Filiberto Ruiz
Holcim (Serbia) d.o.o., Serbia Personnel: 1,828
Chief Executive: Claudiu Soare Production capacity: 18.6 million t of cement
Personnel: 369 Ada plant
Production capacity: 1.4 million t of cement Devil’s Slide plant
Novi Popovac plant Hagerstown plant
Aggregates operations Holly Hill plant
Ready-mix concrete operations Mason City plant
Midlothian plant
Portland plant
Holcim (Romania) S.A., Romania Ste. Genevieve plant
Chief Executive: François Pétry Theodore plant
Personnel: 792 Trident plant
Production capacity: 6.1 million t of cement Birmingham grinding plant
Alesd plant Camden grinding plant
Campulung plant Chicago grinding plant
Turda grinding plant
Ready-mix concrete operations Aggregate Industries Management Inc., USA
Chief Executive: Filiberto Ruiz
Personnel: 2,351
Holcim (Bulgaria) AD, Bulgaria Mid Atlantic Region
Chief Executive: Todor Kostov Mid West Region
Personnel: 436 North East Region
Production capacity: 1.7 million t of cement Western Region
Beli Izvor plant
Ready-mix concrete operations Holcim (Canada) Inc., Canada
Chief Executive: Baudouin Nizet
Personnel: 2,598
Holcim (Rus) OAO, Russia Production capacity: 3.3 million t of cement
Chief Executive: Guillermo Brusco Joliette plant
Personnel: 1,247 Mississauga plant
Production capacity: 5.8 million t of cement Demix group
Cement Shurovo plant Dufferin group
Volsk plant
Aggregates
Other construction
materials
and services
Holcim (Maroc) S.A., Morocco

Chief Executive: Dominique Drouet
Personnel: 458
Fès plant
Oujda plant
Settat plant
Nador grinding plant
Ciments de Guinée S.A., Guinea

Chief Executive: Jaafar Skalli
Personnel: 137
Conakry grinding plant
Société de Ciments et Matériaux, Ivory Coast

Chief Executive: Stefan Heeb
Personnel: 220
Abidjan grinding plant
Holcim (Liban) S.A.L., Lebanon

Chief Executive: Benedikt Vonnegut
Personnel: 460
Chekka plant
Kalecik grinding plant
Holcim (Outre-Mer) S.A.S., La Réunion

Chief Executive: Vincent Bouckaert
Personnel: 505
Ibity plant
Le Port grinding plant
F I N A N C I A L I N F O R M AT I O N 5 -Y E A R- RE V IE W 241
5-year-review Group Holcim

2014 2013 20121 20112 20102
Statement of income
Net sales million CHF 19,110 19,719 21,160 20,744 21,653
Gross profit million CHF 8,562 8,632 8,631 8,528 9,274
Operating EBITDA million CHF 3,747 3,896 3,889 3,958 4,513
Operating EBITDA margin % 19.6 19.8 18.4 19.1 20.8
Operating profit million CHF 2,317 2,357 1,749 1,933 2,619
Operating profit margin % 12.1 12.0 8.3 9.3 12.1
EBITDA million CHF 4,156 4,332 4,352 4,264 4,988
Depreciation, amortization and impairment million CHF 1,434 1,547 2,150 2,367 1,934
EBIT million CHF 2,723 2,785 2,202 2,235 3,054
Income taxes million CHF 588 533 550 449 615
Tax rate % 27 25 35 40 28
Net income million CHF 1,619 1,596 1,002 682 1,621
Net income margin % 8.5 8.1 4.7 3.3 7.5
Net income – shareholders of Holcim Ltd million CHF 1,287 1,272 610 275 1,182
Statement of cash flows
Cash flow from operating activities million CHF 2,498 2,787 2,643 2,753 3,659
Cash flow margin % 13.1 14.1 12.5 13.3 16.9
Investments in property, plant and equipment for
maintenance net million CHF 738 719 790 752 410
Investments in property, plant and equipment for expansion million CHF 1,020 1,282 803 886 1,182
(Disposal) Purchase of financial assets, intangible and other
assets and businesses net million CHF (35) (336) (396) 154 (230)
Statement of financial position
Current assets million CHF 7,307 7,590 8,275 8,154 8,512
Long-term assets million CHF 32,378 30,355 32,922 34,400 35,747
Total assets million CHF 39,684 37,944 41,198 42,554 44,259
Current liabilities million CHF 6,923 7,461 8,299 7,695 7,214
Long-term liabilities million CHF 12,649 11,807 13,665 15,202 15,924
Total shareholders' equity million CHF 20,112 18,677 19,234 19,656 21,121
Shareholders' equity as % of total assets 50.7 49.2 46.7 46.2 47.7
Non-controlling interest million CHF 2,682 2,471 2,797 2,827 3,020
Net financial debt million CHF 9,644 9,461 10,325 11,549 11,363
Capacity, sales and personnel
Annual production capacity cement million t 211.4 206.2 209.3 216.0 211.5
Sales of cement million t 140.3 138.9 142.3 144.3 136.7
Sales of mineral components million t 4.3 4.1 4.8 5.1 4.1
Sales of aggregates million t 153.1 154.5 158.2 173.0 157.9
Sales of ready-mix concrete million m3 37.0 39.5 45.3 48.4 45.9
Personnel 31.12. 67,584 70,857 76,359 80,967 80,310
Financial ratios
Return on equity3 % 7.6 7.8 3.7 1.6 6.4
4
Funds from operations /net financial debt % 31.7 33.4 30.5 26.4 31.3
EBITDA net interest coverage X 8.6 7.8 6.9 4.2 6.1
EBIT net interest coverage X 5.7 5.0 3.5 2.2 3.7
Net financial debt/EBITDA X 2.3 2.2 2.4 2.7 2.3
1
Restated due to changes in accounting policies.
2 As reported in the respective years, not restated due to changes in accounting policies.
3 Excludes non-controlling interest.
4 Net income plus depreciation, amortization and impairment.

242 F I N A N CI A L I N F O R M AT I O N
Cautionary statement regarding forward-looking statements

This document may contain certain forward-looking state-
ments 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, mac-
roeconomic 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 forward-looking statements whether as a result of new
information, future events or otherwise.
Disclaimer
Holcim Ltd publishes Annual Reports in English and German.
The English version is legally binding.
Holcim Ltd
Zürcherstrasse 156
CH-8645 Jona/Switzerland
Phone +41 58 858 86 00
[email protected]
www.holcim.com
© 2015 Holcim Ltd
Financial reporting calendar

General meeting of shareholders April 13, 2015
Ex date April 15, 2015
Payout April 17, 2015
Results for the first quarter 2015 May 5, 2015
Half-year results 2015 July 29, 2015
Holcim Ltd
Zürcherstrasse 156
CH- 8645 Jona / Switzerland
Phone +41 58 858 86 00
[email protected]
www.holcim.com

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Strength. Performance. Passion.

HOLCIM I N BRI EF >> 9

The economies of the individual Group regions developed heterogeneously over

HOLCIM LEADERSHIP JOURNEY CONTINUES BEYOND 2014

P O RTF O L I O O PTI M I ZATI O N

The Group’s overall presence in Europe was considerably strengthened through a

OUTLOOK FOR 2015

Against this backdrop of generally positive development, the Group is continuing

Zurich, February 2015

Prof. Dr.-Ing. Wolfgang Reitzle Bernard Fontana

URS BLEISCH BERNARD TERVER

THOMAS AEBISCHER ANDREAS LEU

ALEXAN DER GUT

HANNE BIRGITTE BREINBJERG SØRENSEN

KEY FIGURES GROUP HOLCIM

Due to rounding, numbers presented

Production capacity cement in million t 211.4 60

Cement and grinding plants 144 40

HIGHER CEMENT VOLUMES AND

C O N S O L I D AT E D 1 NORTH AMER ICA 2 L AT I N A M E R I C A

Whether in the urban canyons of a megacity, in

Innovative products that are tailored to the res-

The concrete dam at Lake Mutt is 36 meters high,

Cement silos and transport containers at

Two aerial cableways were erected to

“Building on this scale

Ready-mix concrete plant at an altitude

1 Production 2 Transport 3 Storage

CEMENT PLANT TRAIN VA L L E Y S TAT I O N

6 Construction 5 Cement > Concrete 4 Transport

Within the mountain Marti is boring four

Victor Alva is 25 years old, and has been

Victor Alva rises early and heads for the bus. It is

“With Holcim Más, every time

redeem for prizes. In my case, I use them to get

end-customers sales, makes it a true value-for-all solution.

The Holcim Más program is available

In Mexico, Holcim sells roughly 60 per-

a chat. Afterwards Alva goes to place his order. The

At the Duyen Hai power plant , the chi-

Qing Li Wang, project manager for GEDI (Guangdong Electric Power

Captain Doan Minh Sang steers the “Sai-

1 DRILLING 2 INJECTION 3 FINISHING

Because of the remote location of Duyen

The Duyen Hai 1 coal-ﬁred thermal

For Holcim Vietnam, success on this major project

“Holcim’s know-how and abil-

before returning for more. In this way, Sang and his

VIETNAM R EGION ASIA PAC I FIC

Key success factors

Holcim’s vision is to provide foundations for society’s future.

Central pillars of value creation Creating added

Balance between global strategic and local operational

100% In Holcim’s view, alongside occupational health and

0% 49% 49% 48% 47% 49%

firmly anchored in their local environment and why

Occupational health and safety has the highest prior-

Holcim Brazil 2.3 2.3

Holcim US 0.5 0.5