Strength.Performance.Passion.

COMPANY BACKGROUND
Holcim is one of the world's leading suppliers of cement and aggregates. It holds interests in more than 70 countries on all continents. Holcim Philippines is a member of the Holcim Group. It is involved in the manufacture, sale and distribution of cement and ready mix concrete. It is committed to managing resources responsibly and working with communities to develop sustainable options for their future. Holcim established its presence in the Philippine cement industry in 1974. Today, Alsons Cement Corporation and Union Cement Corporation have come together to move forward as a stronger Holcim Philippines. Maintaining its unique homegrown identity and heritage of strength, resilience and consistent financial performance while taking advantage of the support and resources of a global brand. Nationwide, we are powered by a strong workforce that forms part of the global network, as well as a worldwide resource of innovative minds. The Holcim Group holds majority and minority interests in more than 70 countries on all continents. From its origins in Switzerland, the Group has grown

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into a global company with market presence in over 70 countries on all continents. The Group employs some 90,000 people. Holcim initiated production of cement in 1912 in the village of Holderbank, (Lenzburg district, Canton of Aargau, ca. 40 km from Zrich) and used the name Holderbank AG until 2001 when they changed it to Holcim from Holderbank and cement. It is currently (2009) the second largest cement manufacturer in the world, just behind Lafarge.

MISSION STATEMENT
Our mission is to be the world's most respected and attractive company in our industry - creating value for all our stakeholders.

VISION
Our vision is to provide foundations for society's future.

GOALS
Company goals are: Continually set the highest standards of customer satisfaction in our industry Secure the strongest competitive position in our markets
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Partner with suppliers to deliver value-for-cost procurement for the Group and our customers

Be recognized as an employer of first choice Empower our employees and integrate them fully into our global network Selectively grow our worldwide presence of companies Demonstrate our commitment to sustainable development Be acknowledged as a valued and trusted partner in our community Be the most recommended stock in our industry

TACTICS
A company rooted in unwavering values, Holcim keeps ahead of change, reaping opportunities for growth because we believe that values is a driving force for change.

A partner in nation-building We have a strong commitment to the local community. Customized solutions We customize our solutions to suit your particular requirements. Sustainable practices We provide sustainable operations in communities where we operate while maintaining strong business performance.

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Simple and transparent processes We are simple and straightforward in our business dealings. Consistent availability Our people, products, and services are available to you at all times. Valued expertise Armed with global expertise and a resilient local spirit, we are dedicated to delivering the best results. Creative ideas We encourage continuous improvement of our processes, products and services.

STRATEGY

As one of the world's leading producers of building materials, Holcim aspires to be the most respected and attractive company in the sector - creating value for all our stakeholders. Our strategy is based on three central pillars:
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focusing on the core business, geographical diversification and balancing business responsibility between local and global leadership. Product Focus Innovative, application-driven, high-quality products make us the provider of first choice. Among the reasons for Holcim's lasting success is a product strategy with a focus on the production and distribution of our core products - cement and aggregates - both of which are key basic materials for construction. The main focus of investment is the processing of raw materials. The production of cement and aggregates, for example, requires a great deal of process knowhow, and is a highly capital-intensive process that ties up assets over the long term. Because of the continuing demand for new production facilities and rising building costs, capital expenditures for cement production have risen substantially.

Geographic diversification Holcim is more globally active than any other building materials group, with a strong foothold in each individual market.

Local management, global standards Our success lies in striking a balance between local responsibility and global leadership.

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OPERATIONS

Holcim continuously carries out intensive research into new products and expert production systems, enabling us to offer our customers superior product performance and efficiency gains. Innovation along the value chain also helps us to promote new methods in the construction materials industry, and we support research and development into eco-efficient and sustainable solutions. This is all the more urgent because the built environment accounts for some 40 percent of energy consumption in the world today (EU estimate). By extending our product range, we are able to: improve our ecological profile in many markets, by focusing our research and development activity on eco-efficient products and services offer customers bespoke, application-specific solutions using composite cements and concretes

take a holistic view on system solutions that encompass the entire process, from the manufacture of the product, through use, to end of life and recycling.

Process Innovation
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Holcim has been involved in developing and introducing new production technologies for many years. The main focus of this process innovation is on cutting costs and increasing the environmental efficiency of our facilities. In Switzerland alone, Holcim currently has more than 12 research and development projects underway at leading universities and research institutes, all of which are being led by Holcim technical specialists. One area where Holcim's leading role in environmental protection is apparent is in the special platforms needed for the preparation and use of alternative fuels and raw materials. Through these, Holcim seeks not only to substantially lower the emissions from its kiln systems, but to promote the use of such eco-efficient materials. Holcim also conducts intensive research into critical mechanical plant components, to enhance the reliability of a wide range of machines, as well as to reduce investment costs. One example is the multi-drive concept, a new drive system that will be used for the first time in the grinding plant being built in Rouen, France. Developed in close cooperation with Pfeiffer AG and Flender AG, the drive - based on several, interlinked standard gears - allows mill gears to last longer and reduces the need to stock spare parts.

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PRODUCT DESIGN -IDEA GENERATION

CEMENT HISTORY Antiquity Precisely when master builders began using binders in construction cannot be ascertained, but traces of lime mortar have been found in structures in Turkey that are over 14,000 years old. In the high cultures of Mesopotamia (before 2000 B.C.) and Egypt, builders used burned lime. The Egyptians used it as a binder to construct the pyramids (before 2600 B.C.). We know that the Phoenicians (before 1000 B.C.) mixed their mortars with ground volcanic rock or ground brick, thereby producing binders that could set even underwater. Greek colonies in southern Italy dating from about 150 B.C. feature masonry walls that consist of two neatly laid faces and the interstitial cavity filled with a mix of mortar and rubble or stones, called emplekton.

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Roman Era The Romans developed the technology further. They were the first to use concrete, constructing with it foundations, and quay building walls. components, Their opus

aqueducts,

caementitium, from which our current word "cement" is derived, was of such high quality that structures built with it still exist today. Large parts of the Colosseum in Rome are made of Roman concrete. Another famous example of Roman concrete architecture is the Pantheon in Rome, which was begun in 27 B.C. Its concrete dome with a diameter of 43 meters was outdone only by steel-reinforced structures, for example, Century Hall in Breslau, with a clear span of 65 meters, built by Max Berg in 1912. The constituents of opus caementitium, Roman concrete, are burned lime, water, sand, and broken stone. Roman master builders also mixed pozzolan and ground brick into their concrete, thereby producing a building material that also hardened and remained firm underwater. Lime burners, or magister calcariarum, burned lime at about 1000C. Pozzolan is a type of natural stone, mainly volcanic ash. Middle Ages The knowledge of opus caementitium was lost with the fall of the Roman Empire. In many cities
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the predominant construction technique was half-timbering infilled with wicker or wattle and daub. For the construction of masonry buildings, builders chiefly used air-hardening lime mortars such as loam-lime-sand mortar or loam-lime mortar. These mortars are not water resistant and are not particularly durable. Some foundations were made of mortar containing ground brick.

17th Century In 1648, brisk trade in tuff rock from the Eifel began between Germany and Holland. The Dutch ground the porous volcanic rock and named it trass. The material was used to make mortar that could harden underwater. Dutch trass was also a sought-after commodity abroad.

18th Century For the construction of Eddystone Lighthouse at Plymouth, Englishman J. Smeaton (1724 - 1792) needed a water-resistant mortar that could set underwater. He learned through his experiments that lime created by burning alumina and limestone possessed hydraulic properties, that is, it hardened with the addition of water - both in the air and underwater - and it also remained solid in water. The binder, burned marly lime, was named "Roman cement." Today it is called Roman lime, because it was not burned at 1450C, the standard temperature for cement. By the end of the 18th century the "ideal" blend for Roman lime had been determined: 25 to 30 percent of alumina was added to the limestone before burning.
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19th Century In 1824, Englishman Joseph Aspdin burned a blend of lime and alumina. Using this binder he produced artificial stone that matched the color of the often-used limestone from the Portland peninsula on the English Channel. He therefore named his product Portland cement. This binder was also not yet a cement by current standards; as the firing temperature had not yet reached the sintering point of about 1450C. This was first achieved by his son William, at the newly established factory for Portland cements. During the construction of the Parliament building in London, builders ascertained that the binder from this factory was superior to Roman cement. Isaac Charles Johnson first recognized the importance of burning at high temperatures in 1844. In 1862, E. Langen in Germany discovered that the strength and sulfate resistance of cement could be enhanced by the addition of blast-furnace slag that had been rapidly cooled and substantially glassified.

20th Century Selected raw-material mixtures and special grinding allow the production of cements with various properties, such as fast or slow setting, high strength, and

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sulfate resistance. Self-compacting concrete can be made using cement with appropriate additives for vibration and de-aeration

-CEMENT MAKING PROCESS

1. Extraction and crushing

Raw Material extraction The cement production process begins at the quarry with the study and evaluation of the raw materials (limestone and clay) that are necessary in the cement production process. Once the raw materials are evaluated and found suitable for cement production, the quarrys concession / exploitation permit is applied for with the respective authorities. In order to complement the mining assessment, additional geological studies are undertaken. Finally, plans to exploit the quarry are defined and the extraction process starts: drilling, blasting, loading and transport of the raw materials to the crusher.

Crushing

The crushing process reduces the size of the extracted rock down to a size that is suitable for conveying and feeding to the grinding process.

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1. Pre-Homogenization
The crushed raw material is transported from the quarry by a conveyor belt, analyzed on its way with on line analysis equipment and finally stored in the prehomogenization beds. Raw materials are built up in two horizontal piles and extracted by cutting vertical slices. This method of storage and recovery greatly reduces the variability of the incoming rawmaterials. The extracted pre-homogenized material is transported to a silo from which the raw meal mill is fed. At the raw mill site, corrective materials such as iron minerals corrective limestone or sand are added to the mixbefore it enters the raw mill.

2. Clinker Production
Raw Material Grinding The raw materials which have a maximum size of about 10 cms are then fed to the raw grinding mill. This is generally a vertical mill with 3-4 rollers and a rotating table. Material is dragged under the rollers and is simultaneously dried and pulverized. The pulverized material is transported by the hot gases coming from the kiln system to the filters, where it is separated from the hot gas and conveyed to the homogenization silo.

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There, it is further homogenized to reach the ideal chemical composition that will be used for clinker production.

Clinker Production It I sin the clinker production / sintering process that the major chemical

transformation takes place. The ground and homogenized material is transported to start the transformation process of the raw materials to create clinker. The fine raw material

1. Grinding and storage

Clinker from the clinker cooler is transported to storage silos or halls from where it is later recovered and fed to the clinker grinding mills. Clinker grinding mills, which may be vertical types or ball mills may be equipped with pregrinders or crushers. On netry to the mill the clinker is mixed with gypsum and other materials. The proportions of these materials, composition of the clinker and the fineness to which the resultant cement is ground will determine the cement type and characteristics. Mills are normally equipped with classifiers which return oversize product back to the mill for further grinding.

2. Packing and dispatch

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The cement is transported to storage silos, from which it is later extracted to be distributed in bags or bulk. When the customer purchases cement in bags, the packing operation is performed with packing machines that automatically fill the bags (normally 25kg, 40kg,or 50kg) and drop them to the transport conveyor, for direct delivery to customer vehicle or to a palletizer which allows product to be packaged, stored and loaded on demand. When the customer purchases bulk products, the cement is fed from the silos directly into the delivery tanker. The dispatching department is where the cement loading takes place according to the customer order. Bulk dispatch areas are often unmanned whereby drivers access the products as required according to predefined orders.

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-AGGREGATE MAKING PROCESS

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1. Quarrying Quarry - the quarry is worked in a series of benches (platforms) separated by near vertical faces. Carefully planned blasting operations consisting of a series of small explosions breaks up the solid rock.

2. Loading & hauling Loading & hauling - the blasting is planned to minimize noise and vibration, and assist in creating uniform size fragments of rock. This rock is then loaded by hydraulic shovels on rubber-tired front-end loaders for transportation to the processing plant.

3. Conveyor Conveyor - raw material is then transported from the quarry using conveyors, rail wagons or other suitable logistics solutions specific to the aggregates facility. Typically the crushing operation will be adjacent to the quarry.

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4. Processing & logistics Preliminary sorting - processing involves crushing the rock into smaller particles and separating these into particular sizes. The particles are separated either to improve crushing efficiencies or to produce a specific product.

5.Crushing Crushing - mechanical crushers are used to reduce the size of rock pieces. Most crushers operate in an open circuit, with material then passing to sorting (grading). 6. Grading Grading - rubber belted conveyors are used to move rock to and from the various separating machines (screens) and the rock crushers.

7. Stockpiles
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Stockpiles - various products including sands and gravels are held in stockpiles ready for distribution. 8. Washing Washing - finer material is washed to remove find clays, and also minimize dust. 9. Grading Grading - rubber belted conveyors are used to move rock to and from the various separating machines (screens) and the rock crushers.

10. Water recycling Water recycling - Water used for washing and dust abatement is recycled by extracting fine sands from it. These processes enable plants to minimize dust with lower water consumption.

11. Stockpiles Stockpiles - various products including sands and gravels are held in stockpiles ready for distribution. 12. Logistics Logistics - final aggregate products are then transported to construction sites via appropriate transport methods, including rail and truck.

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-PRODUCT CHARACTERISTICS
-----------------------------------------------------------CEMENT-------------------------------------------------------------

Cement is made by grinding clinker to a fine powder, which produces traditional Portland cement. When mixed with sand, gravel or crushed stone and water, cement acts as the binding agent to make concrete. Cement production is both resourceand energy-intensive. Our

commitment to improving eco-efficiency is based on a holistic view of the entire process, from the manufacture of the product to its use and recycling. Holcim offers customers a wide range of cementitious materials as well as developing customized blends for special applications. Examples of technical and eco-efficient innovations include the following:

-Low-CO2 cements The main driver for reducing CO2 emissions in cement production continues to be the improvement in clinker factor, by substituting clinker in cement with appropriate secondary materials. In recent years, our product portfolio has undergone a successful switch to low-CO2cements and Holcim now has one of the lowest clinker factors in the industry. We offer customers made-to-measure,
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application-specific solutions using composite cements, containing mineral components such as slag or fly ash in addition to clinker and gypsum. These comprise 75 percent of the cement types produced by Holcim.

-Eco-efficient products with exceptional resistance CEMROC, just one of a growing range of eco-efficient products offered by Holcim, is a building material that offers very low CO2 emissions in production. It is exceptionally resistant to attack by chemical agents and offers exemplary durability and service life. CEMROC is produced by adding extra components to a slag cement, which enhances the properties of the end-product concrete and makes it resistant to aggressive environmental conditions.

----------------------------------------------------------Other Products------------------------------------------------------Holcim cement offerings include Holcim Excel and Holcim WallRight for its bagged products and Holcim Premium and Holcim 4X for its bulk products

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Holcim Excel
Product description Premium quality general purpose cement, Holcim Excel is a special formulation of Portland cement with advanced mineral additives, conforming to both ASTM C595 and PNS 063. Applications Primary application of Holcim Excel cement is construction of concrete floor slabs, columns, beams, walls and pavements. Other applications include concrete hollow block production.

Benefits * Higher early strength = reduces construction time * Higher yield = less cost per concrete hollow block: 5-10 more CHB * Improved wokability = eliminates unnecessary repair and rework

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* Improved chloride and sulfate resistance = durable and longer-lasting structures

Holcim WallRight
Product description Holcim WallRight is a masonry cement conforming to PNS ASTM C91 Type S specifications.

Applications Holcim WallRight is a masonry cement for hollow block laying and filling, plastering, and finishing. It has superior bond strength, increased water retention, and smoother texture compared to ordinary cement applied as a finish.

Benefits Holcim WallRight is a masonry cement specially developed to have superior bond stength and high workability. * Superior bond stength makes plastering application easier and faster * Extendable mixture ~ 1:4 (cement:sand) * Allows easy placement and better bonding for hollow block laying * Improves quality of surface finish compared to ordinary cement

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White Cement

Total aesthetics and functional performance White cement from Holcim - a building material which awakens emotions, and which, thanks to its application versatility, its superb quality, and its great strength, as well as unparalleled aesthetic appeal and total functional performance, fulfils all the requirements for a modern, high performance and durable construction material. White cement from Holcim makes a vast number of aesthetic and functional applications possible, as well as fulfilling all the demands made on a Portland. In addition to this, white cement from Holcim is set apart from others by its excellent processing qualities and structural strength, which provide buildings and other structures with a permanent beauty and real substance. Whether worked into decorative exposed concrete, prefabricated concrete elements, dyed paving stones or original garden sculptures - when combined

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with your imagination, the application and design possibilities of white cement are almost unlimited.

Oilwell Cement

Our products fit for the customer's process technology The oilwell cements offered by Holcim are subjected to rigorous internal and external screening. The oilwell cement properties are continuously tested and documented on product data sheets that can be requested at any time. At Holcim, we place great emphasis on the compliance of our products with the regulations that govern service providers in the oil and gas industry (QM - Quality Management, stable characteristics). Nevertheless, we are convinced that the challenges and demands in product application go far beyond mere compliance (QM - Quality Management, fit for application). The factthat the oilwell cement complies with the API standard's chemical-physical requirements does not ensure that it will be accepted by oil and gas service providers.
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In addition to meeting the requirements of API specification 10A,well cements must generally also be compatible with the company' s materials. That's why Holcim has developed the Performance Principle. It is not only applied to the properties of the oilwell cements involved in the production of the final slurry but also to the user's process technology.

Aggregates
Aggregates include crushed stone, gravel and sand. Aggregates are the main component by volume of concrete, and are used in many other applications. Aggregates are mainly used in the manufacture of ready-mix concrete, concrete products and asphalt, as well as for road building and railway tracks. Production of aggregates centers on quarrying, preparing and sorting the raw material. Holcim is placing increasing emphasis on the recycling of aggregates from concrete demolition material.

In addition to our core activities in cement and aggregates, Holcim produces and distributes ready-mix concrete and concrete products, and offers environmental services focused on waste management and alternative fuels.

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Ready-mix concrete
Concrete is second only to water as the most-consumed commodity on the planet, by volume, and is of huge importance to economic development. Urbanization is accelerating cement demand around the world, with particularly high growth predicted from emerging economies.

Holcim Concrete

Structural Concrete Holcim Concrete produces quality ready mix concrete of all strength grades used in Metro Manila, including 10,000 psi. We can handle small and large orders. We have knowledgeable concrete engineers who can provide technical support and help solve your construction problems.

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Industrial Housing Concrete Industrial Housing Concrete can increase productivity in building projects that use modular formwork. It requires minimum vibration to attain full compaction, resists segregation even when pumped over long distances and under difficult conditions, and is easy to place and finish. We can save you money by reducing your labor cost and increasing forms turnover.

Road and Pavement Concrete Our Road and Pavement Concrete are designed to meet AASHTO and DPWH requirements for strength, wear resistance and performance. We can produce higher early strength grades that will meet the target strengths earlier specified by the DPWH Blue Book.

High Strength Concrete High Strength Concrete is used for tall buildings, structural members of bridges and flyovers, and prestressed and post-tensioned elements. By reducing the size of structural elements, HSC lowers steel cost, increases the usable floor area, and reduces the weight of the building and its foundation.

Special Applications We can design special concretes for your construction project. With our experienced concrete engineers and access to the Holcim global know-how in cement, aggregates and concrete, we can develop innovative solutions for you -

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whether you need lightweight concrete, low heat mass concrete, flowable fill, high early strength concrete, self-compacting concrete or any other special concrete application.

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As we can see on the Holcim Ltd. supply chain, it starts with the Fuel Suppliers, Quarries which includes Limestone quarries and Shale quarries and other Raw Material Supplier which includes Sand, Clay and Iron Ore where the company gets its supplies to start the production of the cement. When the raw materials are completely collected, it then undergoes the cement making process which involves extraction and crushing, Pre-

Homogenization, Clinker Production and then Grinding and storage. After grinding, the bulk cement is placed on the Cement Bulk storage, from that storage some of bulk cement is sent to construction companies, some are brought to concrete companies and some are put on the packaging area to be

bagged and then dispatch to some wholesalers and retailers and then these establishments provide for some builders and contractors.

HOLCIM VALUE CHAIN Innovative, application-driven, high-quality products make us the provider of first choice. Among the reasons for Holcim's lasting success is a product

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strategy with a focus on the production and distribution of our core products cement and aggregates - both which are key basic materials for construction. The main focus of investment is the processing of raw materials. The production of cement and aggregates, for example, requires a great deal of process know-how, and is a highly capital-intensive process that ties up assets over the long term. Because of the continuing demand for new production facilities and rising building costs, capital expenditures for cement production have risen substantially. However, our investment policy and product range are adapted to suit the maturity of each market and local customer needs. So while cement and aggregates are the basis of our business, other products bring us closer to the end-consumer. As markets mature and customer needs broaden, we offer readymix concrete, concrete goods, asphalt and associated services:

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In emerging markets, we focus on building up and expanding cement production;

In maturing economies, vertical integration becomes more significant, and we aim to establish ready-mix concrete businesses in major urban centers;

In developed markets, the range of products is even more diversified and includes aggregates, asphalt and concrete products. Because of the high degree of regulation in industrialized nations, it is strategically important to have high-grade, secure raw material reserves.

Following that logic, Holcim built up a strong cement portfolio in emerging markets while the aggregate portfolio is mainly focused on mature markets and on urban areas in emerging markets.

QUALITY OF PRODUCT
GLOBAL STANDARDS

Our business has local roots and is geared to the conditions and needs of each specific market where we operate, yet we have Group-wide standards and systematic benchmarking that allow us to enhance our efficiency. Therefore, our success lies in striking a balance between local responsibility and global leadership.

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The extractions of large quantities of raw materials, the operation of capital-intensive cement plants and the distribution of building materials to local or regional markets require strong local presence and an awareness of our responsibilities. However, to fully exploit our potential, Holcim has standardized all its major corporate processes. This allows local management to concentrate on market development, cost efficiencies, training for staff and senior managers, and nurturing community relations at a local level.

QUALITY CONTROL
Control Center In the Control Center area, state of the art technology is used to monitor and control the entire production process, under the watchful eye of a team of specialists that analyse the quality of raw materials, inter-mediate, and final products in order to guarantee the excellence of the cement that is delivered to customers.
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Quality control

In order to examine the quality of the products, many control tests are regularly performed in all the areas of the production process, from the quarry to cement dispatch. Modern laboratories are put to good use in controlling the quality and assuring the performance of final products.

Holcim uses an up-to-date Production Control System which includes incoming materials control, production process control and end product control. The company has ISO 2001:9000 certification.

Incoming control Incoming control monitors the humidity, wash ability and granulometry of aggregates. Holcim Beton Plovdiv is supplied with cement and aggregates by companies as Holcim Karierni materiali Plovdiv and Holcim Bulgaria which guarantee the quality of the raw material by certificate.

Production process control The production process control is performed at the ready-mix plant and focuses
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on the concrete compacting and accurate recipe performance. The method and periodicity of sampling comply with the requirements of standard EN 206-1.

Final control Holcim experts subject final products to physical and mechanical tests in a modern lab equipped with state-of-the-art technology. The quality control in Holcim is finalized with a document submitted to the client - a declaration of conformity with a concrete quality certificate. All test results are stored in special journals, as well as in electronic files and clients can trace back and make sure of the quality of concrete offered. Thanks to its GPS system Holcim guarantees the quality of ready-mix concrete (the sensor equipped trucks send information about the condition of the concrete).

ISO STANDARD
ISO has developed over 18 500 International Standards on a variety of subjects and some 1100 new ISO standards are published every year. The full range of technical fields can be seen from the listing International Standards. Users can browse that listing to find bibliographic information on each standard and, in many cases, a brief abstract. The online ISO Standards listing integrates both the ISO Catalogue of published standards and the ISO Technical programme of standards under development.

Environment. Health protection. Safety

Environmental protection
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Wastes Air quality Water quality Including toxicity, biodegradability, protection against pollution, related installations and equipment

Soil quality. Pedology Soil properties related to geotechnics

Occupational safety. Industrial hygiene Protective clothing and equipment, Workplace lighting,

Safety of machinery Domestic safety Child safety Safety of toys,

Noise with respect to human beings Including audiometry Acoustics and acoustic measurements Hearing protectors,

Vibration and shock with respect to human beings Vibrations, shock and vibration measurements,

Ergonomics

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Accident and disaster control Including emergency evacuations and emergency control systems Seismic and vibration protection of buildings,

Protection against fire Explosion protection Electrical apparatus for explosive atmospheres, Explosives and pyrotechnics,

Protection against excessive pressure Including safety valves, bursting disc devices, etc.

Protection against electric shock. Live working Including tools for working with voltages

Radiation protection Including protection against radio-frequency radiation Radiation measurements

Protection against dangerous goods Including performance requirements for dangerous goods, their handling, storage, transportation, marking, labelling, etc. Explosives, see Nuclear fissile materials,

Protection against crime Including security services, security procedures, burglar alarm devices, burglary resisting materials and equipment, bullet resisting materials and equipment, anti-theft devices for vehicles, safes, strong rooms,

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Alarm and warning systems Burglar alarm and warning systems, Warning devices for road vehicles,

Protective equipment Occupational safety,

Health care technology

including quality and environmental management in health care technology IT application in health care technology,

2000 version of ISO

ISO 9001:2000 combines the three standards 9001, 9002, and 9003 into one, called 9001. Design and development procedures are required only if a company does in fact engage in the creation of new products. The 2000 version sought to make a radical change in thinking by actually placing the concept of process management front and center ("Process management" was the monitoring and optimizing of a company's tasks and activities, instead of just inspecting the final product). The 2000 version also demands involvement by upper executives, in order to integrate quality into the business system and avoid delegation of quality functions to junior administrators. Another goal is to improve effectiveness via process performance metrics numerical

measurement of the effectiveness of tasks and activities. Expectations of

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continual process improvement and tracking customer satisfaction were made explicit. The ISO 9000 standard is continually being revised by standing technical committees and advisory groups, who receive feedback from those professionals who are implementing the standard. ISO 9001:2008 only introduces clarifications to the existing requirements of ISO 9001:2000 and some changes intended to improve consistency with ISO 14001:2004. There are no new requirements. Explanation of changes in ISO 9001:2008. A quality management system being upgraded just needs to be checked to see if it is following the clarifications introduced in the amended version. Certification ISO does not itself certify organizations. Many countries have formed accreditation bodies to authorize certification bodies, which audit organizations applying for ISO 9001 compliance certification. Although commonly referred to as ISO 9000:2000 certification, the actual standard to which an organization's quality management can be certified is ISO 9001:2008. Both the accreditation bodies and the certification bodies charge fees for their services. The various accreditation bodies have mutual agreements with each other to ensure that certificates issued by one of the Accredited Certification Bodies (CB) are accepted worldwide.

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The applying organization is assessed based on an extensive sample of its sites, functions, products, services and processes; a list of problems ("action requests" or "non-compliance") is made known to the management. If there are no major problems on this list, or after it receives a satisfactory improvement plan from the management showing how any problems will be resolved, the certification body will issue an ISO 9001 certificate. The certificate is limited by a certain scope (e.g. production of golf balls) and names the locations covered. An ISO certificate is not a once-and-for-all award, but must be renewed at regular intervals recommended by the certification body, usually around three years. There are no grades of competence within ISO 9001: either a company is certified (meaning that it is committed to the method and model of quality management described in the standard), or it is not. In this respect, it contrasts with measurement-based quality systems such as the Capability Maturity Model.

QUALITY GURU
DR. KAORU ISHIKAWA (19151989) A professor of engineering at the University of Tokyo and a student of Dr. W. Edwards Deming, Ishikawa was active in the quality movement in Japan, and was a member of the Union of Japanese Scientists and Engineers. He was awarded the Deming Prize, the Nihon Keizai Press Prize, and the Industrial Standardization Prize for his writings on quality control, and the Grant Award

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from the American Society for Quality Control for his educational program on quality control. Ishikawa's book, Guide to Quality Control (1982), is considered a classic because of its in-depth explanations of quality tools and related statistics. The tool for which he is best known is the cause and effect diagram. Ishikawa is considered the Father of the Quality Circle Movement. Letters of praise from representatives of companies for which he was a consultant were published in his book What Is Total Quality Control? (1985). Those companies include IBM, Ford, Bridgestone, Komatsu Manufacturing, and Cummins Engine Co. Ishikawa believed that quality improvement initiatives must be

organization-wide in order to be successful and sustainable over the long term. He promoted the use of Quality Circles to: (1) Support improvement; (2) Respect human relations in the workplace; (3) Increase job satisfaction; and (4) More fully recognize employee capabilities and utilize their ideas. Quality Circles are effective when management understands statistical techniques and act on recommendations from members of the Quality Circles.

DR. JOSEPH JURAN (B. 1904) Dr. Juran was born on December 24, 1904 in Braila, Romania. He moved to the United States in 1912 at the age of 8. Juran's teaching and consulting career spanned more than seventy years, known as one of the foremost experts on quality in the world.

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A quality professional from the beginning of his career, Juran joined the inspection branch of the Hawthorne Co. of Western Electric (a Bell

manufacturing company) in 1924, after completing his B.S. in Electrical Engineering. In 1934, he became a quality manager. He worked with the U. S. government during World War II and afterward became a quality consultant. In 1952, Dr. Juran was invited to Japan. Dr. Edward Deming helped arrange the meeting that led to this invitation and his many years of work with Japanese companies. Juran founded the Juran Center for Quality Improvement at the University of Minnesota and the Juran Institute. His third book, Juran's Quality Control Handbook, published in 1951, was translated into Japanese. Other books include Juran on Planning for Quality (1988), Juran on Leadership for Quality (1989), Juran on Quality by Design (1992), Quality Planning and Analysis (1993), and A History of Managing for Quality (1995). Architect of Quality (2004) is his autobiography. SELECTED JURAN QUALITY THEORIES Juran's concepts can be used to establish a traditional quality system, as well as to support Strategic Quality Management. Among other things, Juran's philosophy includes the Quality Trilogy and the Quality Planning Roadmap. JURAN'S QUALITY TRILOGY. The Quality Trilogy emphasizes the roles of quality planning, quality control, and quality improvement. Quality planning's purpose is to provide
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operators with the ability to produce goods and services that can meet customers' needs. In the quality planning stage, an organization must determine who the customers are and what they need, develop the product or service features that meet customers' needs, develop processes which are able to deliver those products and services, and transfer the plans to the operating forces. If quality planning is deficient, then chronic waste occurs. Quality control is used to prevent things from getting worse. Quality control is the inspection part of the Quality Trilogy where operators compare actual performance with plans and resolve the differences. Chronic waste should be considered an opportunity for quality improvement, the third element of the Trilogy. Quality improvement encompasses improvement of fitness-for-use and error reduction, seeks a new level of performance that is superior to any previous level, and is attained by applying breakthrough thinking. While up-front quality planning is what organizations should be doing, it is normal for organizations to focus their first quality efforts on quality control. In this aspect of the Quality Trilogy, activities include inspection to determine percent defective (or first pass yield) and deviations from quality standards. Activities can then focus on another part of the trilogy, quality improvement, and make it an integral part of daily work for individuals and teams. Quality planning must be integrated into every aspect of the organization's work, such as strategic plans; product, service and process designs; operations; and delivery to the customer. The Quality Trilogy is depicted below in Figure 2.

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JURAN'S QUALITY PLANNING ROAD MAP. Juran's Quality Planning Road Map can be used by individuals and teams throughout the world as a checklist for understanding customer requirements, establishing measurements based on customer needs, optimizing product design, and developing a process that is capable of meeting customer requirements. The Quality Planning Roadmap is used for Product and Process Development and is shown in Figure 3. Juran's Quality Trilogy and Quality Roadmap are not enough. An infrastructure for Quality must be developed, and teams must work on improvement projects. The infrastructure should include a quality steering team with top management leading the effort, quality should become an integral part of the strategic plan, and all people should be involved. As people identify areas with improvement potential, they should team together to improve processes and produce quality products and services. Under the "Big Q" concept, all people and departments are responsible for quality. In the old era under the concept of "little q," the quality department was responsible for quality. Big "Q" allows workers to regain pride in workmanship by assuming responsibility for quality.

ENVIRONMENT PRESERVATION

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Turning waste into energy: Geocycle Alternative fuels are an important source of energy, contributing toward lowering global CO2emissions. Holcim Group companies have taken a major step forward in the use of alternative fuels and raw materials through Geocycle, our waste management brand. This covers most of our operations in Asia, Europe and North America , and builds on Holcim's 18 years' experience in coprocessing. Geocycle customers benefit from standard waste disposal services or individual solutions to ensure eco-efficient recycling of unwanted by-products. Holcim Group companies use the waste materials in energy generation and cement production, so conserving virgin natural resources, lowering fossil fuel consumption and reducing CO2 emissions per tonne of cement.

Co-Processing The nature of the cement production process makes possible to incorporate environmental-friendly solutions for the disposal of industrial residues which are both safe and commercially viable, known as co-processing. Co-processing is the final disposal of fuels and residues such as used oils, plastics, soil, fibers, tires, sledges, etc. which are disposed of in a safe and environmentally acceptable manner. These are transformed into heat and new residues simultaneously within the ongoing clinker production process, in accordance with national environmental regulations. Co-processing is suitable

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and successful due to the high combustion temperatures (between 900C and 2000C), the extended residence time and the high turbulence that the materials experience along the production process.

Quarry Rehabilitation These are the major elements of the Final Mines Rehabilitation and Decommissioning Plan ( FMRDP, also commonly referred to as a Mine

Closure or Quarry rehab Plan ), for the four operating cement plants of Holcim Philippines Inc. located in Bulacan and La Union in Luzon and in Davao and Lugait in Mindanao. The details are contained in six (6) separate volumes of quarry closure plans. The FMRDPs are based on the guidelines contained in the revised Implementing Rules and Regulations of DENR Administrative Order No. DAO 96 40. The plans are also in compliance with the principles of quarry rehabilitation Switzerland. provided by the international headquarters of Holcim in P

The total combined

rehabilitation cost is estimated at

72.14 M which is to be funded within a period of 12 years. The details of this estimate are presented in the closure plans of the four (4) Holcim Plants which have been submitted to their respective MGB regional offices for their review.

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NEEDS AND DEMANDS OF PEOPLE

Need For Cement

In Britain particularly, good quality building stone became ever more expensive during a period of rapid growth, and it became a common practice to construct prestige buildings from the new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic lines were favored for this, but the need for a fast set time encouraged the development of new cements. Most famous was Parker's "Roman cement". This was developed by James Parker in the 1780s, and finally patented in 1796. It was, in fact, nothing like any material used by the Romans, but was Natural cement" made by burning septaria nodules that are found in certain clay deposits, and that contain both clay minerals and calcium carbonate. The burnt nodules were ground to a fine powder. This product, made into a mortar with sand, set in 515 minutes. The success of "Roman Cement" led other manufacturers to develop rival products by burning artificial mixtures of clay and chalk. John Smeaton made an important contribution to the development of cements when he was planning the construction of the third Eddystone Lighthouse (17559) in the English Channel. He needed a hydraulic mortar that would set and develop some strength in the twelve hour period between successive high tides. He performed an exhaustive market research on the
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available hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was directly related to the clay content of the limestone from which it was made. Smeaton was a civil engineer by profession, and took the idea no further. Apparently unaware of Smeaton's work, the same principle was identified byLouis Vicat in the first decade of the nineteenth century. Vicat went on to devise a method of combining chalk and clay into an intimate mixture, and, burning this, produced an artificial cement" in 1817. James Frost working in Britain, produced what he called "British cement" in a similar manner around the same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented a similar material, which he called Portland cement, because the render made from it was in color similar to the prestigious Portland stone. All the above products could not compete with lime/pozzolan concretes because of fast-setting (giving insufficient time for placement) and low early strengths (requiring a delay of many weeks before formwork could be removed). Hydraulic limes, "natural" cements, and "artificial" cements all rely upon their belite content for strength development. Belite develops strength slowly. Because they were burned at temperatures below 1250 C, they contained no alite, which is responsible for early strength in modern cements. The first cement to consistently contain alite was made by Joseph Aspdin's son William in the early 1840s. This was what we call today "modern" Portland cement. Because of the air of mystery with which William Aspdin surrounded his product, others (e.g., Vicat and I.C. Johnson) have claimed precedence in this invention,
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but recent analysis of both his concrete and raw cement have shown that William Aspdin's product made atNorthfleet, Kent was a true alite-based cement. However, Aspdin's methods were "rule-of-thumb": Vicat is responsible for establishing the chemical basis of these cements, and Johnson established the importance of sintering the mix in the kiln. William Aspdin's innovation was counterintuitive for manufacturers of "artificial cements", because they required more lime in the mix (a problem for his father), a much higher kiln temperature (and therefore more fuel), and the resulting clinker was very hard and rapidly wore down the millstones, which were the only available grinding technology of the time. Manufacturing costs were therefore considerably higher, but the product set reasonably slowly and developed strength quickly, thus opening up a market for use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and was soon the dominant use for cements. Thus Portland cement began its predominant role. In the US the first large scale use of cement was Rosendale cement a natural cement mined from a massive deposit of a large dolostone rock deposit discovered in the early 19th century near Rosendale, New York. Rosendale cement was extremely popular for the foundation of buildings (e.g., Statue of Liberty, Capitol Building, Brooklyn Bridge) and lining water pipes. But its long curing time of at least a month made it unpopular after World War One in the construction of highways and bridges and many states and construction firms turned to the use of Portland cement. Because of the switch to Portland
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cement, by the end of the 1920s of the 15 Rosendale cement companies, only one had survived. But in the early 1930s it was soon discovered that Portland cement while it had a faster setting time was not as durable, especially for highways, to the point that some states stop building highways and roads with cement. An engineer, Bertrain H. Wait, whose company had worked on the construction of the New York Cities Catskill Aqueduct, and was impressed with the durability of Rosendale cement, came up with a blend of both Rosendale and synthetic cements which has the good attributes of both: it was highly durable and had a much faster setting time. Mr. Wait convinced the New York Commissioner of Highways to construct an experimental section highway near New Paltz, New York, of one sack of Rosendale to six sacks of synthetic cement, and it was proved a success and for decades hence the Rosendalesynthetic cement blend became common use in highway and bridge

construction.

Need for Aggregates

The American Society for Testing and Materials publishes an exhaustive listing of specifications for various construction aggregate products, which, by their individual design, are suitable for specific construction purposes. These products include specific types of coarse and fine aggregate designed for such uses as additives to asphalt and concrete mixes, as well as other construction uses. State transportation departments further refine aggregate material

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specifications in order to tailor aggregate use to the needs and available supply in their particular locations. Sources for these basic materials can be grouped into three main areas: Mining of mineral aggregate deposits, including sand, gravel, and stone; use of waste slag from the manufacture of iron and steel; and recycling of concrete, which is itself chiefly manufactured from mineral aggregates. In addition, there are some (minor) materials that are used as specialty lightweight

aggregates: clay, pumice, perlite, and vermiculite.

Need for Wallright

WallRight is ideal for plastering and finishing. It has superior adhesion, lighter color, better consistency, increased water retention, and smoother texture compared to ordinary cement applied as a finish. Masonry cement is specially developed to have better resistance against debonding and mortar cracks. WallRight yields more plastering and finishing mortar, covering more area with each application and helping save on costs. Its smooth texture and adhesion enables faster plastering time and better quality finish.

Need for White Cement

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White Portland cement is used in combination with white aggregates to produce white concrete for prestige construction projects and decorative work. White concrete usually takes the form of pre-cast cladding panels, since it is not economical to use white cement for structural purposes. White Portland cement is also used in combination with inorganic pigments to produce brightly colored concretes and mortars. Ordinary cement, when used with pigments, produces colors that may be attractive, but are somewhat dull. With white cement, bright reds, yellows and greens can be readily produced. Blue concrete can also be made, at some expense. The pigments may be added at the concrete mixer. Alternatively, to guarantee repeatable color, some manufacturers supply readyblended colored cements, using white cement as a base. The whiteness of WOPC is measured as the powdered material having a reflectance value ("L value") in excess of 85%. A particular success in the use of WOPC and added pigments is monocouche renders.

Need for Oilwell Cement

Oil Well Cement as the name suggests, is used for the grouting of the oil wells, also known as the cementing of the oil wells. This is done for both, the offshore and on-shore oil wells.

As the number of oil wells is increasing

steadily, the sales of Oil Well Cement

have also increased. This has boosted the cement industry to a large extent.

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Oil Well Cement is manufactured from the clinker of Portland cement and also from cements that have been hydraulically blended. Oil Well Cement can resist high pressure as well as very high temperatures. Oil Well Cement sets very slowly because it has organic 'retarders' which prevent it from setting too fast. It is due to all these characteristics that it is used in the building of the oil wells where the pressure is around 20,000 PSI and the temperature is around 500 degrees

Need for Concrete

The Assyrians and Babylonians used clay as the bonding substance or cement. The Egyptians used lime and gypsum cement. In 1756, British engineer, John Smeaton made the first modern concrete (hydraulic cement) by adding pebbles as a coarse aggregate and mixing powered brick into the cement. In 1824, English inventor, Joseph Aspdin invented Portland Cement, which has remained the dominant cement used in concrete production. Joseph Aspdin created the first true artificial cement by burning ground limestone and clay together. The burning process changed the chemical properties of the materials and Joseph Aspdin created a stronger cement than what using plain crushed limestone would produce.

The other major part of concrete besides the cement is the aggregate. Aggregates include sand, crushed stone, gravel, slag, ashes, burned shale, and
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burned clay. Fine aggregate (fine refers to the size of aggregate) is used in making concrete slabs and smooth surfaces. Coarse aggregate is used for massive structures or sections of cement.

Concrete that includes imbedded metal (usually steel) is called reinforced concrete or ferroconcrete. Reinforced concrete was invented (1849) by Joseph Monier, who received a patent in 1867. Joseph Monier was a Parisian gardener who made garden pots and tubs of concrete reinforced with an iron mesh. Reinforced concrete combines the tensile or bendable strength of metal and the compressional strength of concrete to withstand heavy loads. Joseph Monier exhibited his invention at the Paris Exposition of 1867. Besides his pots and tubs, Joseph Monier promoted reinforced concrete for use in railway ties, pipes, floors, arches, and bridges.

Need for Excel

A premium quality cement, Excel is a special formulation of Portland cement with advanced mineral additives, conforming to both ASTM C595 and PNS 063. It is designed to produce a more workable concrete, higher early strength, and better surface finish. Primary application of Excel cement is construction of concrete floor slabs, columns, beams, walls, and pavements. Other applications include concrete hollow block production. Excel is the leading cement brand in Mindanao, having sold more than 30 million bags since the product was launched in 2002. Excel is also exported to many overseas markets.
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Benefits High early strength Using Excel reduces the water-cement ratio resulting in higher early strength for the same concrete slump when compared to ordinary Portland cement (OPC). Improved workability Improved workability can be achieved by using Excel at the same watercement ratio as with OPC. Concrete pouring and placing is made easier, faster, and results in a better concrete surface. Higher yield The use of Excel increases yield in hollow block production. Tests show Excel yields 5-10 more blocks than any other cement product. Smoother, whiter finish Excels compact microstructure and higher fineness result in a more cohesive mix and a smoother final finish. Excels advanced mineral additives also help produce a lighter finish.

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The sales forecast graph shows the actual sales from 2008-2010 and sales forecast for the years 2011- 2016. The low case means the lowest possible sale that the company can make while the base case is the normal performance that the company does.

FINANCIAL STATEMENTS Income Statement (Prices in CHF) Year on year Holcim Ltd's net income deteriorated 19.65% from 1.47bn to 1.18bn despite relatively flat revenues. A contributing factor has been the increase in the cost of goods sold, selling, general and administrative expenses and interest paid (all as a percent 3.55 of sales). Return on Assets % Revenue Gross Margin Net Profit Margin Operating Margin 42.56% 7.78% 11.62% Net Income Return on Equity 6.72 % 4.70 %

Return on Investment

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Cash Flow (Prices in CHF) In 2010, cash reserves at Holcim Ltd fell by 1.19bn. However, the company earned 3.66bn from its operations for a Cash Flow Margin of 16.90%. In addition the company used 1.36bn on investing activities and also paid 3.24bn in financing cash flows.

Cash Flow Cash Flow Per Share 11.0 2

Cash Book Value Per Share 55.2 3 27.3 7

Price/Cash Flow Per Share

5.33

Tangible Book Value Per Share

Balance Sheet (Prices in CHF) Holcim Ltd has a Debt to Total Capital ratio of 42.57%.

Total Assets Current Ratio Quick Ratio 1.19 0.9031

Total Debt Total Debt/Total Equity Total Debt/Total Capital 0.867 1 0.425 7

BALANCE SHEETS

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In Millions of CHF (except for per share items) Cash and Short Term Inv Total Receivables, Net Total Inventory Prepaid Expenses Other Curr. Assets, Total Total Current Assets Prop./Plant/Equip. - Net Goodwill, Net Intangibles, Net Long Term Investments Note Rcvble - Long Term Other Long Term Assets Total Assets Accounts Payable Notes Payable/ST Debt Curr. Port. LT Dbt/Cap Ls. Other Curr. Lblts, Total Total Current Liabilities Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total

Dec 31 2010 Dec 31 2009 Dec 31 2008

3,416 2,671 2,072 326 27 8,512 23,343 8,144 917 1,490 1,055 413 44,259 2,151 1,385 1,076 2,602 7,214 12,151 14,612 2,203 3,020 1,570

4,507 3,401 2,162 493 234 10,797 25,493 8,926 1,057 2,206 -315 49,206 2,223 2,933 1,520 2,604 9,280 13,854 18,307 2,389 3,011 1,639

3,610 3,116 2,482 385 401 9,994 23,262 8,378 928 2,056 -307 45,193 2,566 3,924 1,939 2,336 10,765 12,789 18,652 2,157 2,616 1,508

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In Millions of CHF (except for per share items) Total Liabilities Common Stock Additional Paid-In Capital Ret. Earn.(Accum. Deficit) Treasury Stock - Common Total Equity Total Liabilities & Shareholders' Equity Ttl Comm. Shares Outs. Trsy. Shrs-Comm. Primary Iss.

Dec 31 2010 Dec 31 2009 Dec 31 2008

26,158 654 9,371 8,552 (476) 18,101 44,259 320 7

30,173 654 9,368 9,466 (455) 19,033 49,206 320 7

29,835 527 6,870 8,362 (401) 15,358 45,193 283 6

CASH FLOW

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In Millions of CHF (except for per share items)

Dec 31 2010

Dec 31 2009 Reclassified 12/31/10

Dec 31 2008

Net Income Depreciation/Depletion Non-Cash Items Cash Taxes Pd, Supplemental Cash Interest Pd, Suppl Changes in Working Capital Total Cash from Operations

2,236 1,894 872 829 471 (1,343) 3,659

2,581 1,849 664 639 726 (1,206) 3,888

2,889 1,973 1,182 877 861 (2,341) 3,703

Capital Expenditures OtherInvestCashFlowItms,Tot Total Cash from Investing

(1,821) 459 (1,362)

(2,507) (1,923) (4,430)

(4,518) (957) (5,475)

Financing Cash Flow Items Total Cash Dividends Paid Iss (Retirmnt) of Stock,Net Iss (Retirmnt) of Debt, Net Total Cash From Financing

(334) (480) (29) (2,397) (3,240)

(350) 0 1,968 (422) 1,196

(235) (868) (349) 4,119 2,667

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INCOME STATEMENTS In Millions of CHF (except for per share items) Total Revenue Cost of Revenue, Total Sell/General/Admin. Expenses, Total Depreciation/Amortization Total Operating Expense Operating Income Other, Net Net Income Before Taxes Provision for Income Taxes Net Income After Taxes Minority Interest Net Income Before Extra. Items Net Income Income Available to Common Excl. Extra. Items Income Available to Common Incl. Extra. Items Basic/Primary Weighted Average Shares Basic/Primary EPS Excl. Extra. Items Dec 31 2010 21,653 12,379 6,289 406 19,074 2,579 122 2,236 615 1,621 (439) 1,182 1,182 Dec 31 2009 21,132 12,072 5,913 375 18,360 2,772 196 2,581 623 1,958 (487) 1,471 1,471 Dec 31 2008 25,157 14,116 7,681 -21,797 3,360 21 2,889 663 2,226 (444) 1,782 1,782

1,182

1,471

1,782

1,182

1,471

1,782

320 3.694

298 4.934

284 6.267
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In Millions of CHF (except for per share items) Basic/Primary EPS Incl. Extra. Items Diluted Weighted Average Shares Diluted EPS Excl. Extra. Items Diluted EPS Incl. Extra. Items DPS - Common Stock Primary Issue Gross Dividend - Common Stock Pro Forma Net Income Interest Expense, Suppl Depreciation, Supplemental Normalized Income Before Taxes Inc Tax Ex Impact of Sp Items Normalized Income After Tax Normalized Inc Avail to Common Basic Normalized EPS Diluted Normalized EPS

Dec 31 2010 3.694 320 3.691 3.691 1.500 480 -789 1,711 2,236 615 1,621 1,182 3.694 3.691

Dec 31 2009 4.934 298 4.931 4.931 1.500 480 -780 1,603 2,581 623 1,958 1,471 4.934 4.931

Dec 31 2008 6.267 284 6.265 6.265 2.250 594 -877 1,631 2,889 663 2,226 1,782 6.267 6.265

LOCATION DECISION
In choosing a plant location, there are many factors to consider. These are:
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1.

Availability of Raw Material- Usually, Holcim plants are near to its quarrying site so that it will minimize transportation expense.

2. 3.

Nearness to the potential market Near to operating requirements (Electricity, Garbage Disposal and Drainage Facilities)

4. 5. 6. 7. 8. 9. 10.

Supply of labor Transportation and communication facilities Integration with other groups and companies Suitability of land and climate Availability of housing and other amenities and services Local building and planning regulations Safety Requirements

Selection of the site for the factory

Known as the location analysis where firstly some geographical is selected and from that area a particular site is selected for establishment of the plant. Methods in evaluating plant locations 1. Quantitative Factors 2. Comparison of qualitative Factors

Advantages and disadvantages of rural, urban and sub-urban sites of a plant

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RURAL More Water Cheaper land Lower taxes Few ordinances

URBAN Better transportation Large labor supply Big local market Easy finance Municipal services

SUB-URBAN Planned industrial Larger area

Labor stability

Better civil attitude

CAPACITY PLANNING
Ste. Genevieve Plant of Holcim The new cement manufacturing facility of Holcim (US) at Ste. Genevieve with a production capacity of four million tonnes per year was inaugurated on June 4, 2010. The plant that went on stream mid-2009 will be one of the most environmentally-efficient cement plants in the Holcim Group. It is 40 percent more energy-efficient than the Holcim (US) plants that were closed in 2009 and emits 10 to 25 percent less CO 2. The new Ste. Genevieve cement plant had been under construction since 2005, went on stream mid-2009, and was inaugurated on June 4, 2010. It is a world-class facility with a single-kiln line and has an annual production capacity of four million tonnes of cement, which makes it one of the world's largest cement manufacturing facilities. "This state-of-the-art plant and our robust network of terminals and distribution assets will ensure a reliable supply of the

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highest quality cement to our valued customers today and for many years to come", said Bernard Terver, President and CEO of Holcim (US), proudly. Over the past decade, Holcim (US) has expanded its production capacity in the west, south, and southeast of the United States, but it still needed a more modern and reliable plant to serve the central part of the country. The new plant in Ste. Genevieve, Missouri, boosts Holcim's market presence throughout the river system of the Midwest, right down to the Gulf of Mexico. With its own port and loading facilities on the Mississippi, the factory is a model facility in every respect and is highly energy-efficient. Compared with the Holcim (US) plants shut down (Dundee and Clarksville) the improvement per tonne of cement equals around 40 percent. CO 2-emissions per tonne of cement are 10 to 25 percent lower than the norm, mainly due to energy-efficient transportation, with barges handling approximately 75 percent.

Transportation on waterway, rail and road Ste. Genevieve, Missouri was chosen as the best site for this new plant for several reasons: a plentiful supply of good-quality limestone, a high-quality workforce, and good access to target markets via key transportation networks including waterway, rail and road. The spine of the waterway network is the Mississippi River, over 3,700 kilometers long. This system serves ten of the twenty largest cities in the United States. The Ste. Genevieve plant has its own slack-water harbor on the Mississippi, allowing efficient and low-cost

transportation of six million tonnes of materials annually.

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Comprehensive safety program Achieving excellence in safety has been a prime concern during construction, commissioning, start-up, and operation of the plant. Holcim (US) developed new procedures and policies for this large greenfield project and its many unique challenges, including commissioning and start-up. Safety remained a chief concern during start-up, as activities shifted from construction to operation and the associated change of hazards required a change of mindset. During the four years from start of construction to initial operation, over 7.5 million man-hours were worked on-site by 2,500 workers, and the plant maintained a recordable incident rate of about a third of the average for the US construction industry.

Committed to Sustainable Development In maintaining Holcim's commitment to sustainable development, the plant will be one of the most environmentally-efficient cement production facilities ever operated. Holcim has made major efforts to both minimize emissions and protect air quality along with the conservation and preservation of natural resources. Holcim invested in cutting-edge equipment with high plant efficiencies, optimized raw materials, and energy efficient transportation opportunities. While about 1,700 acres will be permitted for quarry and plant operations, ongoing reclamation will ensure that only a portion is opened at any given time. Holcim has restored more than 60 acres of wetlands on the property. Other than the on-site quarry materials, up to 75% of the plant's materials and products will be received and shipped by river, maximizing both energy and environmental
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efficiency. Jeff Ouhl, Ste. Genevieve Plant Manager, said, "As we continue to strive toward safety and sustainability, this plant is a true testament to the many people who worked so hard to get us to this point. Holcim customers can now look forward to years of consistently performing, high quality product from the Ste. Genevieve Plant."

SITE DECISIONS
It takes a great deal of production know-how to make cement and related products. Read more about what is involved and how we manage the impacts.

Quarrying and raw materials preparation Activities: drilling and blasting in quarries (or demolition of existing constructions to obtain and recycle materials); crushing; transport to cement plant. Impacts: use of natural resources; effects on landscape and ecology; traffic effects on nearby communities.

Management and mitigation: use secondary materials to substitute for clinker and reduce natural resource consumption; rehabilitate quarries; systematically minimize noise, transport and visual impact.

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Clinker production Activities: raw materials mixed and homogenized; milling and drying; filtering; firing in kiln to produce clinker minerals; cooling of molten clinker. Impacts: intensive energy and resource use; emissions to atmosphere; health and safety. Management and mitigation: replace fossil fuels and raw materials with waste and industrial by-products (alternative fuels); continuously monitor and reduce CO2 and other emissions; foster a health and safety culture including a zero target for incidents.

Cement grinding and distribution Activities: grinding of cooled clinker with other materials in cement mill to produce the final cement types; cement transported from plant in bags or as bulk powder. Impacts: intensive energy and resource use; emissions to atmosphere; health and safety. intensive energy and resource use; emissions to atmosphere; health and safety Management and mitigation: as well as internal systems and controls mentioned above, Holcim places huge emphasis on being a good neighbor and a good employer. This entails not only limiting environmental impacts but also working with our stakeholders

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throughout our value chain - including our employees and people living near our plants and factories.

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JOB AND WORK MANAGEMENT

Careers With operations spanning the globe, Holcim draws together a team of about 80,000 people focused on the production and supply of innovative building products essential for the modern world. Job openings Currently advertised positions for inspired and energetic people to join the Holcim team. Job Search Our international presence offers employees many opportunities around the world. We aim to recruit, develop and retain people who enjoy their work and are inspired to contribute their energy and ideas to building sustainable futures. Employment opportunities within Holcim Group Support As our Group Companies are managed locally you will find job offers and information on how to apply on their jobs & careers sites.

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Employees share their experiences of working for Holcim and developing a rewarding career. It's our people that make our company successful. Discover the insider's view and get to know our employees working in different roles, functions and countries. Find the testimonials that fit your preferences and let them inspire your career plans. Work for Holcim Holcim's vision is to provide foundations for tomorrow's society. We are one of the world's leading industrial groups and offer a wealth of opportunities for both experienced professionals and graduates from various backgrounds. Achieve success Holcim aims to recruit, develop and retain the best people, and provide an inclusive, supportive working environment for everyone from the most

experienced executive to the newest graduate recruit. Develop as a leader Ongoing success comes from identifying and guiding the development of present and future managers in each Group company throughout the world. Stay on track Regular assessments, mentoring and coaching, meeting objectives and identifying new challenges are all part of the career development process.

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Build an international career Typically, a Holcim career begins in the country of origin, but based on performance, international assignments are considered as an important step for future leaders.

Great career opportunities for young talents

Holcim focuses on development of professional and personal skills and encourages teamwork as well as active contribution within a diverse cultural environment. Milo Degiorgi, 28, is one of our many young engineers who took advantage of the great opportunities and challenges Holcim offers to young talents. Having studied mechanical engineering at bachelor level, Milo Degiorgi conducted a master's degree in management technology and economics at the Swiss Federal Institute of Technology Zurich, writing his master thesis about Holcim just before starting his career with the company in 2006. Today he is the Assistant to the Regional Technical Director for Holcim Eastern Europe in Vienna. The first contact with Holcim In a lecture during Milo's studies, a Holcim engineer presented a companyrelated business case. Impressed by the company he later contacted the guest speaker who told him about the great opportunities at Holcim and encouraged him to send in his CV. This was when he was offered to write his master thesis at

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Holcim Central Europe on Supply Chain Management. "I was welcomed very friendly and open", he remembers. "I enjoyed working together with those people so much that I was extremely motivated both to excel in my final work at university and to support this fantastic team the best I could". The result was that Holcim offered him permanent employment after his studies. Great challenges, tangible products and the benefits of an international company As Assistant to the Regional Technical Director in Holcim Eastern Europe, Milo is responsible for reporting the cement manufacturing's key performance indicators and is involved in a variety of operative and strategic projects. He always wanted to work in an industrial environment, is interested in production facilities, the goods produced and thus the related problems and challenges. He always wanted to work for a company where tangible products are produced. From this point of view Holcim is a fascinating company for him. "I'm sure that the heart of every engineer will beat faster seeing the high preheater towers or the long turning cement kiln of a cement plant", he exclaims enthusiastically. Besides his fascination for heavy industry, he wanted to work for an international company that offers global contacts and broad opportunities. As a global player in cement and construction materials, Holcim is present in over 70 countries around the world and has a strong foothold in each of its individual markets. This offers a truly multi-cultural working environment, global network opportunities and the possibility to work abroad and meet people from different backgrounds and cultures. "What I really love about my job besides the
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interesting tasks and great challenges it offers me is that it gives me the opportunity to meet and work with a diversity of people from different countries", he says. He regularly meets with plant managers, production managers and engineers from the countries around the region. At Holcim everything is possible Lots of young people work for Holcim, young talents that bring in new ideas, are engaged and keen to succeed which also motivates others in the company. The fact that within Holcim we live a culture of open communication helps new employees to get in touch with others and familiarize with the company. Holcim encourages its employees to take an active role in directing their careers and make use of the wealth of programs and coaching options available. Young talents have the opportunity to focus on their strengths and improve their weaknesses. Holcim has careers available for both specialists and generalists. "If you have the energy, potential and inspiration you will get the chance to grow. Nowadays we have many young people in management positions. You can see 29-year-old production or maintenance managers, 32-year-old plant managers, or even regional managers or technical directors in their mid forties", Milo confirms. And he adds, "And believe me, at holcim everything is possible. What is the working environment like? Ours is a truly multi-cultural working environment with about 67 nationalities represented across our business. We have an open and

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collaborative corporate culture that offers personal and professional growth, genuine innovation and global networking. We want you to contribute your ideas and energy and to take on experiences that will enrich your working and personal life. How do Holcim companies recruit? The different companies of the Holcim Group recruit independently in the different countries, though the access to the vacancies can be done through one click on the Holcim website. The range of opportunities is broad and offers many career paths to follow with us - no matter where you are in the world. Do I have to specialize in one area of the organization? Developing your full potential with Holcim requires a comprehensive understanding across our business locations and functions. We have careers available for both specialists and generalists that draw on the relationships you will build working with us. Whichever path you choose, you can build your career with us. What kind of career development will I receive? Like our products, performance will be the basis of your career advancement. We encourage our employees to take an active role in directing their careers and make use of the wealth of programs and coaching we have available. If you have the energy, potential and inspiration then we will provide the training and development tools at both a local and corporate level to support your individual objectives.
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What is Holcim's compensation and benefits philosophy? Our ambition to be the leading employer of choice in our industry is reflected through the attractive packages we offer. We regularly review our practices against the external market, so we're always able to attract and retain the best people. And when people need to relocate to join our team, we make sure we provide the assistance needed to make it a smooth transition. For Holcim, its about making sure we offer our people the complete package. What kind of background do I need? Opportunities at Holcim suit a diverse range of people with different backgrounds, trade and academic experiences. Having a technical background or business knowledge will give you a head start. We're looking for bright, capable people to think and plan with vision, to respond and execute with efficiency and to use and develop their skills in flexible, globally oriented teams. If this sounds like you, we want to hear from you.

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