InterCement I ANNUAL REPORT 2011
ANNUAL REPORT 2011
Result- Oriented
Joining efforts, ensuring results InterCement Annual Report 2011
Joining efforts, InterCement believes in collective effort to achieve full operational efficiency. Integration of efforts is a commitment from all those who ensuring results are part of the company. The internal processes are guided by a team spirit with systemic management and adapted to the reality of the many countries where InterCement operates. Shareholders, employees, customers, and suppliers interact harmoniously, taking the company to consistent and sustainable results.
2 3 MESSAGE FROM STRENGTH OF SUSTAINABLE 14 THE CHAIRMAN 34 RELATIONSHIPS 52 ATTITUDE
PROFILE RESULT- CULTURE OF DIVERSITY 06 16 ORIENTED 28 INNOVATION 42 THAT BUILDS
5 InterCement Annual Report 2011 Corporate profile
Corporate profile
InterCement Participações S. A.(InterCement) which will have a crushing capacity of Cofesur (Ferrosur/ Recycomb/ is a privately owned Brazilian company set up 880,000 metric tons per year. La Preferida de Olavarría for the purpose of controlling the business of 80.0% producing and distributing cement, concrete, As part of its international expansion, it is Cimpor and aggregates that belongs to the Camargo currently building an integrated factory of Baesa Maesa Estreito ˜ 33.0% Corrêa Group. Controlled by Camargo cement production in Paraguay under the Loma Negra 9.0% 6.35% 4.44% Cia S.A. Corrêa S.A., it holds 99.90% of InterCement name Yguazú Cementos, and another one, 94.53% Brasil and 94.53% of the Argentine cement also integrated, in Angola under the name Camargo InterCement InterCement company Loma Negra, and has strategic Palanca Cimento. Corrêa S.A. Participações S.A. Áustria holdings in other companies in Brazil and 100% abroad linked directly or indirectly to the InterCement stands for ethics and for sector. Also noteworthy are the shared respect in the development of its operations 99.9% 50.1% 35.0% 16.66% 100% control of Yguazú Cementos in Paraguay and relationship with its stakeholders, InterCement CC Yguazú Itacamba InterCement Brasil S.A. Escom BV Portugal and Palanca Cimentos in Angola, as well as values that it considers fundamental to the minority holdings in companies that generate sustainability of business. Its actions are electricity as self-producers. based on strict principles of sustainability aimed at creating value for the entire Also relevant is a majority stake in production chain and reducing the impact MISSION VALUES InterCement Austria Holding GmbH and of its activities on the environment. To operate in the value chain of the its subsidiaries, created in 2011 with the RESPECT FOR PEOPLE AND THE ENVIRONMENT cement industry in a sustainable way, objective of giving support to the trading Various social and environmental initiatives To always act fairly and properly towards its shareholders, employees, customers, suppliers, activities, and InterCement Portugal, set up undertaken with national and international with innovation and excellence in governments, communities and society as a whole. To act responsibly towards the environment. to monitor the growth of investment made organizations strengthen this commitment. management, committed to customers’ by Camargo Corrêa Group in Cimpor and Among them is the Global Compact led by needs and people’s fulfillment while to give support the investments in Angola. the United Nations (UN), of which it has been generating value for our shareholders RESPONSIBLE CONDUCT Also in Argentina, it owns the concession a signatory since 2010, and the Cement and respecting the environment and To comply with the established laws of the countries and regions where it operates; to assimilate of Ferrosur Roca, a railroad more than Sustainability Initiative (CSI), an arm of the the community. the values defined herein; to act with integrity and in accordance with the universal standards 3,000 kilometers long that is responsible cement segment on the WorldBusiness of good human relations without discrimination on account of race, sex, creed, religion, job, for transporting raw materials, finished Council for Sustainable Development position, or any other motive. products, and other goods. (WBCSD), of which it has been a member since 2008. Investments are continually VISION InterCement has one of the largest being made in new technologies to reduce To be one of the 20 largest cement TRANSPARENCY manufacturing facilities in Latin America with and mitigate emissions of greenhouse gases companies in the world, and one of the 5 To provide clear and ample information on its activities, accomplishments, policies, and performance in a systematic and accessible way. 16 cement production units, 27 concrete (GHGs). The company has ISO 9001, ISO most profitable and efficient. InterCement has 16 plants, and 3 aggregate mines. Its installed cement production units, 14001, and OHSAS 18001 certifications in 27 concrete plants, and capacity is 16 million metric tons of cement several units in Brazil and Argentina. FOCUS ON RESULTS a year. Loma Negra is the leader in the 3 aggregate mines. To always strive to maximize performance as a way of ensuring its permanence, its investments, Argentine market and has been in operation On December 31, 2011 the company had return for shareholders, and suitable conditions for its employees. for over 85 years. InterCement Brasil, 5,061 direct employees, of which 2,076 in founded in 1968, ranks third in the cement Brazil and 2,985 in Argentina, and a portfolio QUALITY AND INNOVATION segment through the brands Cauê and of over 5,000 active clients. Its net income for Cimento Brasil, and it is the fifth concrete the year totaled R$ 2.88 billion and net profit To ensure customers the highest possible quality in the execution of services and the supply of supplier in the country. Furthermore, a new was R$ 257 million. Cash flow, expressed by products and to invest continually in the improvement of its activities and that of its employees. plant is under construction in Cubatão, EBITDA, was R$ 695 million.
6 7 InterCement Annual Report 2011 Corporate profile
CIMPOR the planning. The goal is to provide Cimpor with a stable shareholder structure and a Still aligned to the strategy to grow strong and effective growth strategy. consistently in Brazil and abroad, the parent company Camargo Corrêa S.A. acquired in The reorganization, once approved, will 2010 approximately 33% of the shares of result in the expansion and strengthening the Portuguese cement company Cimpor of this cement company, especially in that operates in 12 countries, including markets with a high growth potential. Brazil, where it holds 9% of market share. InterCement will support the human In March 2012, InterCement presented a resources policy based on the motivation public offering on the Portuguese Securities of Cimpor’s employees in line with the Market Commission (CMVM) in Lisbon to people management policy from the COMPETITIVE ADVANTAGES acquire the entire share capital of the cement Camargo Corrêa Group. In compliance company. Thus, the integration of the with the laws, the company will provide Has a consolidated position as the In Brazil it is a self-producer of Is strategically positioned in the cement and concrete assets and operations more information about the operation only third largest cement company in Brazil hydroelectric energy, which directly value chain with operations in the of Cimpor in South America and Angola is in after the preliminary analysis by CMVM. and Argentina’s leader with well-known impacts the cost savings and emissions relevant markets of concrete in Brazil
brands in the market. of CO2. The total power of the plants and Argentina. Has two gravel quarries and investments owned by InterCement in São Paulo and one in the province of Owns the third largest industrial are as follows: Machadinho HPP (1,140 Buenos Aires, supplying the market and park in South America and one of the MW - 6.35%), Barra Grande HPP (690 ensuring the supply of this raw material
Main Indicators most modern and efficient. MW - 9%), and Estreito HPP (1,087 MW for the proper operation of concrete. - 4.4%). With this InterCement became Var. % 2011/2010 Has programs in place for innovation 100% independent of third parties in Has teams prepared to execute and continuous improvement through a electric power generation, owning assets the projects of expansion and Gross income (R$ million) 1,946 2,660 3,036 3,132 3,584 14% replicable management model focused with an installed capacity of 170 MW. internationalization Net income (R$ million) 1,598 2,042 2,362 2,474 2,884 17% on operational excellence, which has provided solid, systematic, and above- In Argentina it has a railroad Has planned investments of over R$ EBITDA (R$ million) 400 420 641 616 695 13% market-average financial results. concession of 3,300 kilometers that 3 billion over the next years not including EBITDA Margin (%) 25% 21% 27% 25% 24% - connects its main plants to part of the mergers and acquisitions, which ensures Net profit attributable to controlling shareholders (R$ million) 211 186 538 225 257(2) 15% Has one of the lowest rates market, thereby increasing its logistic substantial growth in production volume worldwide of emission of greenhouse competitiveness. in the countries where it operates and new Investments (R$ million) 177 270 263 302 579 92% gases (GHGs) per metric ton of cement capacity in Paraguay and Angola. Sales of cement and by products (millions of tons) 8.8 10.2 10.1 11.5 12.7 10.0% on its production lines. Owns reserves of limestone with guaranteed extraction for several Is the largest individual shareholder Sales of concrete (millions of m3) 2.2 2.4 2.5 2.3 2.1 -9.1% Member of the Cement Sustainability decades and wide availability of raw of Cimpor, a company present in 12 Volume of aggregates (millions of tons) - - - 1.3 2.9 124.3% Initiative (CSI) and a signatory of the materials and other inputs. countries in South America, Africa, UN Global Compact since 2008 to Tons transported (millions of tons) (1) 5.5 5.6 5.1 5.2 5.6 7.7% Asia, and Europe. encourage companies to adopt policies Its controlling shareholder is a solid Employees (at end of period) 4,000 4,808 4,751 4,787 5,061 5.7% for sustainability and corporate social family group recognized internationally. It has a risk management process Income per employee (R$ thousand) 487 553 639 654 708 8.3% responsibility. that, among other objectives, identifies EBITDA per employee 100 87 135 129 137 6.5% Has easy access to its own and monitors the risks critical to the Invests in increasing the thermal resources and that of others through business and process. The information from 2009 is in line with international accounting standards (IFRS). support agencies, bank loans, and The information of 2011 includes the values of InterCement Participações, from InterCement Austria Holding, and its subsidiaries. substitution rate (co-processing) in (1) Values refer to railroad concession. Brazil and Argentina. capital markets. (2) In 2011, the consolidated net profit of InterCement Participações S.A. suffered non-recurring financial and tax expenses valued at approximately R$ 46 million.
8 9 InterCement Annual Report 2011 Corporate profile
HIGHLIGHTS 2011
InterCement Production JANUARY JULY Only cement transactions Restarted operations of the aggregate Implemented SAP 6.0 in its integrated deposits with very favorable performance version in Brazil and Argentina, making in the year. it possible to increase the synergies between the operations. MARCH Reached 23% market share of cement in AUGUST Paraguay, opening opportunities for the Organized the Day of Doing Good at plant being built in the country. InterCement with the participation of 4,353 volunteers, benefiting more than 20,000 people in Brazil, Argentina, and Paraguay.
SEPTEMBER Was recognized in the Silver Category in the Brazil GHG Protocol Program for NOVEMBER 1 Inventory of Greenhouse Gases in Brazil Differentiated participation of InterCement BRAZIL in 2010. Brasil in the Concrete Show in São Paulo.
BOLIVIA 3 2 Reached a record in the thermal DECEMBER 8 substitution rate by co-processing (burning Signed the contract for building an 7 4 5 waste) at the Ijaci (MG) plant by 20.01%. integrated cement plant in Angola PARAGUAY 6 with operational startup scheduled for 9 Implemented the risk management December 2014. APRIL process of business and processes. 1 Suape 16 Launched the InterCement brand Record yearly sales for InterCement of 2 Santana do Paraíso and consolidated the objectives of OCTOBER 12.7 million metric tons with a growth 17 3 Pedro Leopoldo InterCement Participações, reflecting the Identified opportunities to improve of 10% over the previous year (10% in 10 4 Ijaci company’s internationalization and its processes through the program Reduce to Argentina and 7% in Brazil). ARGENTINA 11 5 Jacareí ability to unite people and culture. Add with reductions of costs and expenses 14 6 Apiaí 12 15 of R$ 10.2 million. 13 7 Bodoquena MAY 18 8 Bolivia Developed new sustainable products in 9 Paraguay Argentina: pervious concrete, concrete 10 Ramallo with recycled aggregates, compound 11 Lomaser cement, and blast furnace cement 12 Olavarría in Catamarca. 13 L’Amalí 14 Barker JUNE 15 Sierra Bayas Obtained a deployment license and a 16 Catamarca permit to start the construction of cement 17 San Juan grinding in Cubatão (SP) with a capacity of 18 Zapala 880,000 metric tons of cement per year. 10 11 InterCement Annual Report 2011 Corporate profile
Timeline
2,884
2,474 2,362
2,042
1,598 1,481
923
680 624 503 580 423 Net income 302 (R$ million) 200 150
1968 1991 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
• Foundation of • Inauguration of All the plants Inauguration of Raises capital • CCI comes to be • • Shareholders´ • Start-up of • • • Entered the Broadened the • Acquisition of the • Entry into Camargo Corrêa the 2nd line in the the Ijaci (MG) with issue of • known as of the Company agreement to concrete Argentine market scope in concrete totality of CBC´s aggregates • Changed Apiaí plant – plant - debentures Industrial (CCI) Camargo Corrêa receive create Yguazú operations with with the by closing a joint shares from market in company name Capacity grows Capacity of 2.0 Cimentos certification Cementos building four acquisition of venture with the Equipav Group, Argentina with to InterCement to 1.3 million tons million tons ISO 9001 (Paraguay) greenfield plants Loma Negra, the Equipav Group, thus holding • Acquisition of acquisition of La Brasil S.A., 1974 leader in establishing the 100% of Cimec Mill in Preferida de marking the Inauguration of the Entered the Shareholders´ • • Argentina - Companhia its equity Suape (PE) Olavarría S.A. • beginning of a Presentation of first plant in Apiaí - Minas Gerais agreement to • Capacity of 7.0 Brasileira de Capacity of 0.3 new phase of Initial Public Capacity of 0.8 1993 market with the build a plant in million tons Concreto (CBC) million tons • Start of expansion for Offering on the million tons acquisition of Lobito, Angola - construction of a the company Portuguese • Entered the Mato Cimento Cauê Capacity of 1.6 • Continued Acquisition of the plant in Paraguay Securities Market Grosso do Sul with plants in • million tons concession of Jacareí (SP) plant - Capacity of 0.4 • Acquisition of Commission market with the Pedro Leopoldo Ferrosur Roca from the Equipav million tons 4.4% of Estreito (CMVM) in Lisbon inauguration of and in Santana Creation of new Group • Hydroelectric to acquire the the Bodoquena do Paraíso – cement holding: Plant entire share plant - Capacity Capacity of 1.2 InterCement capital of Cimpor of 0.8 million tons million tons Participações S.A. • Inauguration of the cement mill in Acquisition by • L’amalí, Argentina Parent Company Camargo Corrêa • Opening office S.A. of about 33% in Austria of Cimpor - Cimentos de Portugal, SGPS, S.A.
• Inauguration of the cement mill in Catamarca, Argentina
12 13 InterCement Annual Report 2011
READY FOR THE FUTURE
The growth of our business in recent Our direct contact with customers in shared with others throughout the entire years is significant—we know, however, all the markets that we operate allows organization in 2012. We believe in that all development needs to be paced. us to be ahead in the development people and invest in their improvement, It is not enough to just grow in volume if of products tailored to the needs of as well as in enhancing the institutional that is not translated into results for the the sector, such as the sustainable climate and quality of life. company. That is why we adjusted our initiatives of Loma Negra in Argentina vision in 2011. Besides being one of the and the Cauê Trends meetings in Brazil. Our Corporate Social Responsibility 20 largest companies in the segment, Our market share in Paraguay also grew Policy was introduced in 2011 and we we want to be among the five most significantly in 2011. formed the Committees of Volunteer profitable and efficient in the world. Incentives and Interaction with the With this performance, we reached a net Community in all units. The highlight This affirmation of excellence is income of $ 2.88 billion, an increase of of the year was the Day of Doing in harmony with the institutional 17% over the previous year. The growth Good promoted in partnership with reorganization consolidated in the year, in net profit, which reached R$ 257 the Camargo Corrêa Institute, which which included all businesses in the million (15% higher than in 2010), was benefited more than 20,000 people. area of cement under the leadership in line with the increase in the volume of of InterCement Participações. The cement and byproducts (10%) sold. New challenges await us in 2012 with change in the institutional design the expansion of activities in different provided more clarity to the challenges The suggestions made by the teams in countries. In alignment with our and responsibilities and expanded the the program Reduce to Add deducted strategy, we submitted a public offering corporate vision through alignment of more than R$ 10 million of expenses in the Portuguese Securities Market the business units. The standardization in the fourth quarter, re-dimensioning Commission in Lisbon to acquire the of procedures and concentration of habits and priorities. This initiative is entire share capital of Cimpor with the aim demands improves our performance being incorporated as a permanent tool of achieving a shareholder composition and qualifies us for growth and for InterCement, preserving the most leading to the company’s stable situation, internationalization. advantageous relations of cost over thus strengthening its capacity for benefit in all its areas and subsidiaries. growth. This initiative demonstrates our Working together with the appropriate Our comfortable financial situation, with commitment to develop an international methodology and tools, we put into net debt at low levels, gives us room for presence and be among the largest global practice transforming actions that important strategic actions and leaves producers of cements. Industrial units generate results. Our improvement us ready for development. will be built over the next few years in groups conducted projects that can Brazil, Argentina, Paraguay, and Angola, significantly increase productivity with All actions were coordinated with marking the presence of InterCement safety through the program Let’s Do the premise of being result oriented. in emerging countries and its important More, which used open innovation as a Activities of reflection and improvement market share in Latin America and Africa. method to obtain higher output in the strengthened the competence among the To do so, we will continue to depend on short term, and the risk management company’s executives and brought this the interaction among our stakeholders, project that allowed greater safety in commitment to the everyday activities. who are the ones responsible for all conducting business and its processes. This process will still be deepened and these achievements.
14 15 InterCement Annual Report 2011
16 17 InterCement Annual Report 2011 Result-oriented
Focus Strategic on results vision
The focus on results promotes consistent the different countries of operation InterCement follows rigorous INTEGRATED MANAGEMENT and sustainable performance, being and products offered. Implemented in sustainability principles that ensure its In August 2011, all units in Brazil and present in InterCement’s strategy, 2005, the Integrated and Replicable financial strength, discipline the use of Argentina were given guidelines and a management, and institutional culture. Management System allows decisions capital, and respect the ethical, legal, checklist for assessing their Integrated Guided by its corporate goals, the to be taken in a decentralized manner social-environmental criteria in actions and Replicable Management System company reaches new heights in the and in line with the objectives and aimed at creating long-term value. (SGIR). This process is fundamental to market from collective construction corporate goals, while still respecting Managers and employees are aware measure the level of adhesion of the and management based on best global local characteristics and peculiarities. of the internal processes to take any respective units to the good management practices. The decision process is shared with the corrective actions with speed with a practices established by InterCement. Executive and Management Committees, focus on objectives and goals in order The assessment takes into account eight Our orientation toward results is made up of directors, superintendents, to maintain the company’s growth and aspects: Daily Routine Management, supported by a matrix management and managers. All business units have its competitive advantages. Matrix Management of Expenses, Matrix system that provides the intersection complete operational structures that are Management of Variable Cost, Matrix between strategy and execution in supported by the corporate areas for InterCement has constantly invested Management of Revenue, Management an integrated way and adapted to strategic issues. in processes for improving by Guidelines, Certifications, Project and expanding its productive capacity Management, as well as Health, Safety The sum of efforts is evident in the and infrastructure while keeping and Environment. improvement projects and gains in a focus on operational excellence efficiency that bring higher occupancy in order to position itself among the Compliance Reports are prepared based levels. This performance is mostly a result 20 largest cement producers in the on assessments and are submitted to of continuous improvement groups, world and be among the five most the managers. Last year, the level of demonstrating that the orientation to profitable and efficient companies. compliance was 65%, up from 50% in results is already in the culture of the The allocation of resources is 2010, which demonstrates the maturity people who make up InterCement. planned according to market trends of the process and the high degree of and customer demand. commitment of the teams involved. The The company has intensified its actions goal is to reach 80% by 2014. of efficiency and cost containment in Among the goals established is to order to be among the most profitable maintain the market share gained in The management process at InterCement companies in the world. Among the Brazil and the leadership position in also has the support of multidisciplinary instruments used for this purpose is the Argentina. Furthermore, InterCement groups brought together in cycles of annual assessment of the budget forecast foresees expanding its business analysis of results and alignment - using the zero base model: all expenses A InterCement wants through acquisitions into developing PDCAs (Plan-Do-Check-Act), aimed at must be justified each year, without to be among the countries, primarily in Africa and Latin continuously improving the management taking into account only the reference of America. An example was the recent actions. Applied consistently across The management system the previous year. The process produces acquisition by the parent company all business units, the tool makes the allows decentralized annual reflection about the expenses of Camargo Corrêa S.A. of approximately processes involved in the execution of decisions in line with the business units, adjusts the budget to TOP 20 33% of the shares of Cimpor, the management more clear and agile. corporate objectives. new situations, and eliminates comfort cement companies in the a Portuguese company that has The best PDCA projects, those that are zones by encouraging systematic world and also among an important participation in translated into gains of efficiency and cost analyses of the resources. the most efficient. emerging markets. reductions, receive awards during the
18 19 InterCement Annual Report 2011 Result-oriented
year, encouraging the good results and The Reduce to Add collective participation of employees program added and leaders. approximately
MANAGEMENT TOOLS In 2011, InterCement gave a further important step in the process of 5% unification of its operations between gains in EBITDA Brazil and Argentina when it migrated earnings in the last to a new integrated version of SAP on quarter of 2011. a single platform. The initiative was developed over a year’s period and sets a standardized and integrated working model. The benefits expected to analyze the nature of expenses, better include cost saving, simplification and evaluate the practices, and propose Operational standardization of operational routines, opportunities for improvement. integration of InterCement’s international performance business, gains in synergy, along with In line with the GMD program, the higher quality in managing information. company launched in 2011 the program InterCement maintains a strategic major consumer markets, the railroad The development and deployment Reduce to Add, which aims to identify direction focused on sustainable network in Argentina managed by actions included the dedication of more possible gaps in processes in order to growth and the internationalization of its Ferrosur Roca, and the trading activities than 100 of the company’s professionals reduce operating costs and establish business, seeking to generate value for at the subsidiary in Austria. and from the consulting company. actions for short and medium term its shareholders and other audiences. In improvements especially with processes 2011, the total volume of cement and its CEMENT The rigorous management of expenses and tasks that do not add to the byproducts sold by the business units, With a 10% market share in the Brazilian is a focus of InterCement towards business result. In the last quarter of adding the operations in Argentina, Brazil, market of cement and leadership in excellence and because of this much the year there was a reduction of costs and Paraguay, reached 12.7 million tons, Argentina, InterCement sold 12.7 million of its investments goes to creating and expenses of R$ 10.2 million, which up 10% over 2010. In Brazil, the increase metric tons of cement in 2011. In Brazil mitigation tools and improving led to gains in the generation of EBITDA was 7% and in Argentina 10%. In both sales totaled 6.4 million metric tons, while processes. In 2011, for example, it for the period of almost 5%. The tool countries the volumes sold represent in Argentina the volume totaled 6.1 million promoted the enhancement of the becomes effective beginning in 2012. new records in annual sales and were metric tons. Matrix Management of Expenses above the average market growth. (GMD) program adopted over five years Also in the year, InterCement adopted a Among the factors that contributed ago. The initiative included hiring an computerized system for managing the To achieve these results, InterCement has to the results for the year are several external consulting company that was sustainability indicators of the cement one of the most modern industrial parks improvement projects for gaining in responsible for mapping the processes operations (Business Intelligence - BI). in South America, which brings together efficiency and increase capacity. Some and establishing new actions. The The tool allows tracking the updated state-of-the-art technology, automated examples were the inauguration of new advantage of the GMD is the grouping sustainability indicators of each industrial processes, and experienced teams. cement mill in L’Amali, Argentina, which of accounts into “packages” that are unit, as well as the consolidation of this Also part of this broad infrastructure are doubled the milling capacity from 1 million managed using a matrix. This makes it data by country and for all business units, limestone mines strategically located to 2 million metric tons a year. To receive so that the item is much more relevant providing constant management while within a radius of up to 20 kilometers an additional volume, the Lomaser unit, and the manager can rely on more data striving for continuous improvement. from the operating units and close to also in Argentina, had a project to expand 20 21 InterCement Annual Report 2011 Result-oriented
its shipping capacity, which led to an AGGREGATES Sales of cement Sales of concrete additional 800,000 metric tons a year, Recognizing the importance of the InterCement sold (millions of m3) (millions of tons) 2.5 raising the annual capacity to 1.8 million segment to the strategy of its business, 14.0 2.5 2.4 2.3 2.2 metric tons. InterCement resumed operations in 12.7 2.1 0.2 0.7 2 0.8 2011 of the deposits of aggregates of 12.0 11.5 0.8 0.1 0.8 Another action in Argentina that Guarulhos and Barueri in Greater São 0.8 12.7 10.2 10.1 1.5 resulted in a gain of productivity was Paulo. Even in an atypical year marked 10.0 the installation of burning fuel oil in the by adjustments for raising the standards 8.8 1 Zapala factory. This initiative will make of operation, the volume shipped in 2011 million tons 1.4 1.6 1.7 1.5 1.3 8.0 it possible to keep the furnace running reached 2.9 million metric tons with an of cement in 2011. 0.5 6.1 during the winter when there is a EBITDA margin of 21.3%. Considering 5.5 6.0 0 restriction on the supply of natural gas. that the market showed an average 5.0 2007 2008 2009 2010 2011 5.5 The action resulted in a 12% increase in performance in 2011 without highlights Brazil Argentina plant capacity, meaning an extra 26,000 of volume or price, the result is significant 4.0 5.3 metric tons of clinker per year. and demonstrates the robustness of
business of aggregates. The year 2011 2.0 CONCRETE was one of learning and implementing 3.5 4.7 5.1 5.9 6.4 In 2011, the concrete operation in the the management model for harvesting 0.0 region of São Paulo was 100% supplied by results in the years to come. 2007 2008 2009 2010 2011 the input of aggregates from InterCement’s Brazil Argentina Paraguay own quarries. The action reduced manufacturing costs and provided gains in the quality of the product. The company continues optimizing the portfolio of mills with a focus on customers who recognize the value added in the operation.
The Loma Negra Technical Center in Argentina ran a test during the year on an industrial scale for the production of Sales of aggregates pervious concrete. The product, which is (millions of tons)
an important solution for parking lots, will 3.0 2.9 be commercially available in 2012. Another 2.5 novelty was the manufacturing of concrete 1.3 with recycled aggregates, which offer a 2.0 positive contribution to the environment. 1.5 1.3 Actions to improve gains in efficiency and increase capacity The volume shipped in 2011 reached 2.1 1.0 1.2 1.6 caused the cement production to million cubic meters, 9% lower than the 0.5 grow in 2011. performance achieved in 2010 due to two 0.1 0 mills closing and the lack of pace of major 2010 2011
infrastructure projects underway in Brazil. Brazil Argentina 22 23 InterCement Annual Report 2011 Result-oriented
Financial performance
With high levels of efficiency in using The year was also marked by increased the installed capacity, InterCement prices of petroleum coke, which gained Gross income by country (R$ million) The company’s gross income in 2011 was obtained excellent results in 2011 in relevance in the variable costs. To 4,000 cement sales volume while maintaining compensate the increase in energy costs 3,584 19 market share—the volume grew 7% at least in part, the company increased 3,500 +16% in Brazil and 10% in Argentina. In the thermal substitution, which increased 3,132 3,036 8 Paraguay, with significant expansion more than 30% in 2011 to levels that 3,000 14% 2,660 of demand, the company increased open up the opportunity for establishing higher than the its share and reached 23% of the more challenging goals. 2,500 previous year. 1,399 local market. 1,946 2,000 1,219 The repurchase of bonds from 1,395 To achieve these results, the company InterCement Brasil and Loma Negra 1,500 1,250 invested in maintenance in recent worth US$ 161 million improved the debt
years, reaching the highest level of profile and got the company ready for its 1,000 1,026 reliability needed for the equipment at growth projects. a time with a strong market demand. 500
The high fixed cost of maintenance REVENUE 920 1,410 1,641 1,905 2,166 0 gave the result expected and was still The company’s consolidated gross 2007 2008 2009 2010 2011
below the growth in revenue in 2011. income reached R$ 3.58 billion, 14% Brazil Argentina Paraguay The level of general and administrative above the R$ 3.13 billion from the expenses on net income is very low and previous year. The result stems from did not increase compared to 2010. the increased volume and price with a In Argentina, the business has been higher demand from the markets and the growing in recent years with a strong prominent position of the brands, having growth in energy costs and other a guaranteed supply because of the high items, which generated an impact on level of occupation. Net income rose financial results. 17% to R$ 2.88 billion.
Net income (R$ million)
3,000 +17% 2,884
2,474 2,500 2,362
2,042 2,000 1,598 1,500
1,000
500
0 2007 2008 2009 2010 2011 24 25 InterCement Annual Report 2011 Result-oriented
Improved performance in milling
Cement production hit records in 2011 in Brazil and Argentina. The “orientation to results” defines the high-performance in management and the pursuit of sustainable growth, such as in the PDCA, PROFIT for improving Ijaci’s technical index In the year and as shown below, 24%, one percentage point lower than InterCement reached an EBITDA of that reached the previous year. The Teamwork once again proved to be an excellent tool for reaching R$ 695 million (13% higher than in company’s net profit was R$ 257 million corporate goals and efficiency in the business. This is what a The Ijaci team 2010), and the EBITDA margin was in 2011, 15% more than in 2010. multidisciplinary group from Ijaci made up of eight employees from various areas (Process, Operation, Maintenance, and Laboratory) reached an proved while leading a PDCA project to improve the unit’s technical increase of index—productivity and availability of maintenance of the chains. Reconciliation of EBITDA 241,600 The development of the project, which lasted about three months, 2010 2011 included four methodological steps: Analysis of the phenomenon, metric tons Process analysis, Action plan, Standardization of processes, and Team a year training. A goal was set after identifying opportunities for improvements: Net Profit 224,524 257,387 increase the operating performance index of mill I and II from 92.8% to Minority Interest 1,880 4,514 94% (cumulative target by December 2010). Income Tax and Social Contribution 127,476 151,643 Net Financial Income 87,439 230,530 The next step of the PDCA was to replace the bushing (one of the Depreciation, Amortization, and Goodwill 136,359 126,983 parts of the mill) that was worn from the effect of high temperature. This action made it possible to reduce the volume of water injected, Other Operating Expenses (Revenues) 38,536 (75,886) ensured a greater stability in the product quality and fewer downtimes EBITDA 616,214 695,171 due to high temperature.
Net profit (R$ million) EBITDA and margin
+5% +15% 600 700 27 25 25 695 500 538 600 641 24 616 21 400 500
400 420 300 400
257 300 225 200 211 200 186 100 100
0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
EBITDA (R$ million) EBITDA Margin (%)
26 27 InterCement Annual Report 2011
28 29 InterCement Annual Report 2011 Culture of innovation
Continuous process Methodology of innovation to generate results
Innovation, established as a collective an internal program to receive As part of its Management System, with the support of communication and continuous process, is a major factor suggestions for increasing productivity, InterCement began in 2009 the actions, human resources, and strategy. in the development of InterCement and and Cauê Trends meetings held with implementation of Innovation Integration is the keyword of the system is present in all corporate structures, industrial customers, which include Management, encouraging the practice based on the production of ideas from strategy to technology. In addition discussions about products. Loma of continuous improvement and the use from collaboration. to stimulating innovative behavior Negra was a sponsor of Tecnópolis of creativity with accountability among among its employees, the company Del Bicentenário, Ciencia, Tecnologia Y employees. In 2010 it went to the field The movement causes one to look at seeks to interact with customers and Arte 2011, an event that celebrated 200 to better understand the expectations the strategy from another perspective, research institutions in order to create years of scientific and technological of its customers. Through interviews bringing new concepts and possibilities. the solutions that are most adequate to activities in Argentina. with businessmen and professionals, This process adds value to the brands the sector’s needs. opportunities to meet specific demands of InterCement, which begin to be In addition to maintaining the incentive were selected, which began to be recognized for their innovative character. InterCement ensures the quality of its for continuous improvement, in 2012 tested for their viability with the use The new methodology also has at its products and processes through the the company will deepen the concept of prototypes. Conducted jointly with center a focus on results, which must consolidated process of continuous of innovation at the strategic level. research institutions, they included be robust, not just incremental, in all the improvement, which has provided high Much beyond the operational aspects operational and commercial activities initiatives taken. levels of excellence in the operations, that follow under constant monitoring and have been under evaluation surpassing industry standards. Because and qualification, the purpose is until 2011 with the purpose of being of this, in recent years it has invested to reach the disruptive innovation, transformed into new processes, in the relationship with its stakeholders enabling InterCement to structure its products, and services. in order to identify trends and projects in the long term, anticipating demands. Partnerships arise through market strategies. In order to reach a new level of initiatives such as Let’s Do More, innovation, the company will adopt a new methodology to obtain permanent, sustainable, and increasingly more radical results. The process implemented in 2012 will become part of the organization’s culture, making disruptive innovation a habit among employees.
Through reflection about its place in the market and its strategy, InterCement looks to the future, reinterpreting its The innovation program challenges. From the observation of Let’s Do More received The company encourages external factors such as customer in 2011 innovative behavior needs, technologies from other among its employees, industries, trends, and paradigms, an customers, and partners. innovation network made up of the company’s professionals will work in 39 cycles for analyzing issues. The groups suggestions from will be transversal and multidisciplinary different areas. 30 31 InterCement Annual Report 2011 Culture of innovation
Let’s Do More Creativity and efficiency
Launched in April, the program Let’s team responsible for defining the Do More promotes gathering ideas feasibility of implementing each project. The “innovation culture” became even more present to increase cement production in Those whose ideas are selected are in 2011 with the actions of Let’s Do More program. reduced time. The proposals, which rewarded with points that can be The Ijaci and Bodoquena units showed that good ideas are are submitted through the company’s redeemed for merchandise such as intranet portal, can be individual or televisions and other electronic devices. translated into gains for the entire production chain collective and must result in at least 10,000 additional metric tons of the Were received 39 suggestions in 2011 Through the program Let’s Do More created in 2011 to gather ideas that contribute to increasing the volume of cement production in the product in 30 days. from many areas and two of them were short term, employees from two plants presented innovative solutions put into practice in the same year. The to improve the production processes. All suggestions received are analyzed program, initially implemented in Brazil,
by the Area of Innovation and by a should be taken to the Argentina units The Ijaci project, proposed by a group of ten people, developed an Committee of Specialists, the technical in 2012. action for using the dust from the cement mill’s bag filter and generated an additional volume in the production of cement of 10,800 metric tons (August to October), which is an average of 3,600 metric tons (5.7%) more per month, plus a 4.7% reduction in the consumption of specific energy (kWh/t). Research In Bodoquena, the idea was to increase the quantity of material utilized partnerships in the mill. The average productivity before the project was 104,600 metric tons/h of cement, rising to 106,200 metric tons/h after the change. With this, the monthly production gained an increase of about In addition to having consultants Institute for Technological 3,000 metric tons. specialized in setting up innovation Research (IPT): development of a new programs, InterCement is associated technological route for the utilization with educational and research institutions of construction and demolition waste. to elaborate prototypes and other The project, which has 50% of its cost technologies. New partnerships were financed by BNDES, has its research Together, the Ijaci initiated in 2011: initiated in the first quarter of 2012. and Bodoquena
Federal University of Minas VHSC Cement: the association units increased Gerais (UFMG): construction of the with the American company will result their monthly Center for Nanotechnology in order in studies of better technologies for the production to centralize the main research in activation of pozzolana, a volcanic rock this field and its applications for the that can be added to the cement. by almost cement industry. Universidad Nacional de Cuyo: 14,000 tons Federal University of Rio de construction of a pilot system to Janeiro (UFRJ): partnership with the capture carbon dioxide by microalgae. Foundation for the Coordination of The project will be developed at the Projects, Research, and Technology Loma Negra factory in San Juan. Studies (Copptec/UFRJ) for the study of sustainable technologies of packaging. 32 33 InterCement Annual Report 2011
34 35 InterCement Annual Report 2011 Strength of relationships
Respect Costumers and trust and suppliers
Respect and trust are the foundations directed to research, discussion, and Several actions intensify the company’s technology in concrete products, nine of InterCement’s relationship with its training. The social actions cause links with its value chain. The Trade large customers from the industry stakeholders. Whether in its routines the company to grow nearer to the Marketing program conducted by Loma channel demonstrated the versatility of with suppliers and customers or in its communities where it operates, taking Negra with Austral University trained Cauê cement through their products by interaction with society, the company structured programs in partnership 100 business people who distribute using booths integrated into the stand seeks to establish strong partnership with the Camargo Corrêa Institute and or use the company’s products in of InterCement Brasil. relations, developing joint solutions Loma Negra Foundation, aligned with their concrete manufacturing process. through teamwork. With customers, local needs. Directed to the owners or their children, In the media, the promotional the daily contact is intensified in actions the course considers family aspects of campaign entitled “Cauê More: Fast small and medium-sized companies drying, resistance + Quality” focused and promotes loyalty and better increasing sales of CPIII 40 RS in the performance of the sales channels. region of Belo Horizonte, and it also Subjects such as models for business encompassed an incentive campaign analysis, people management, with prizes for the retailers. The negotiation, and sales were addressed. distributors gained prominence with a promotional ad developed by Loma In order to discuss the course of the Negra that won the 2011 POPAI Award civil construction market in Brazil with granted by an international organization leading representatives of the industrial that encourages communication and sector, four Cauê Trends meetings promotional activities at the point were held on the themes of interlocking of sale. floor tiles, concrete roof tiles, mortars, and industrialized building systems. The Suppliers’ Workshops promoted InterCement has a department of an exchange of experiences and specialized technical consulting for consolidation of the Supplier Relations this consumer audience that assists Policy of the business unit in Brazil. The in the process of reducing costs and policy deals with the assessment and reaching gains from improving products approval system of the contractors, and services. which emphasizes the reliability of social and environmental aspects. The area of concrete also has a In Argentina, the Value Program has strong proximity with the Brazilian and encouraged since 2009 the adoption Argentine markets. The development of of sustainability practices among its special solutions designed according business partners, supporting social to the need of more sophisticated responsibility programs. The strategic The development of building projects that require special procurement department was created special solutions for characteristics of the product enables in 2011, which negotiates purchase the market also applies a personalized and effective customer volumes jointly from the countries in the area of concrete. service. Loma Negra has the largest where InterCement has operations, thus technical center in the country for increasing the company’s bargaining studies on concrete technology. power and obtaining commercial advantages. Currently part of strategic The relationship with customers is purchasing includes solid fuels such as driven by marketing initiatives. During petroleum coke and coal, as well as the Concrete Show held in São Paulo, refractory, packaging, grinding media, the world’s second largest event for and additives.
36 37 InterCement Annual Report 2011 Strength of relationships
Social management
In addition to promoting the development Gaiv (Ideal Volunteer Action The model proposed by the CSR Childhood Brasil, an organ of the World the professionals of the group and of the communities where it operates Group): comprised of volunteer Policy included the restructuring of Childhood Foundation, an entity that creates opportunities in line with the through partnerships and local professionals interested in working more the Loma Negra Foundation with defends the rights of children around programs developed by the Camargo recruitment, InterCement established its directly in social activities, this group the redefinition of the programs and the world. Corrêa Institute, including also the Corporate Social Responsibility (CSR) develops and coordinates activities strengthening of the team. The change participation of the employee’s family. Policy in 2011. The initiative defines the aligned in their priority to projects and allowed the expansion of the programs Aware of the importance of road In 2011, the company included the standardization of actions and ensures actions underway in the community. to all locations where Loma Negra transport in its business, InterCement volunteering aspect as one of its their alignment with the objectives has operations and increased social joins its commercial operations with sustainability indicators. of the business. CDC (Community Development investment in Argentina. The Foundation social initiatives in order to actively Committee): brings together integrates RedEAmérica, which is made participate in the On the Right Track One of the main actions of the program The CSR governance, in line with the representatives and community up of private entities that work to reduce Program, created by Childhood Brasil is the Day of Doing Good held since The company has Camargo Corrêa Institute model, has leaders from social organizations, the poverty and on social inclusion. with a focus on protecting children 2009. At InterCement, the event was 11 Community four structures: government, and private sector to against sexual abuse and exploitation. attended by 4,353 volunteers and 348 Development develop projects that contribute to the The fight against child labor and partners, benefiting 52 entities and Committees Civic (Committee to Encourage good of the community. Works with the exploitation is also the subject of VOLUNTEERISM 20,649 people in Brazil, Argentina, that bring together Volunteerism and Community concept of giving support and has 11 commitments. Loma Negra participates InterCement encourages the and Paraguay. The participation representatives and Interaction): strengthens the CDCs, which includes most plants. in the Convention to Combat Child participation of its employees in level was a record and the numbers community leaders. company’s ties with the community and Labor led by the Ministry of Labor, volunteer actions, even those that have grown each year, especially in encourages voluntary actions among In 2011, the Civic was installed in all units Employment, and Social Security of are not related to the company. The smaller communities. the company’s professionals. Its formal of InterCement in Brazil, Argentina, and Argentina. With a focus on protecting Ideal Volunteer Program values and actions in all InterCement units total 18 Paraguay. These committees are responsible children against sexual abuse and supports the volunteer efforts from groups and 129 members. for monitoring all CSR actions in their units. exploitation, InterCement is a partner of
Os colaboradores da empresa são incentivados a realizar ações voluntárias na comunidade.
38 39 InterCement Annual Report 2011 Strength of relationships
InterCement employees are volunteers in activities of the Day of Doing Good.
Shared leadership
Belief in the “power of relationships” has made InterCement reach results through the engagement of all its stakeholders. Business, government, and organized society demonstrated in Catamarca that the sum of efforts produces substantial results
In Argentina, the Loma Negra the management of public schools and In July 2011, the agreement signed by Loma Negra with the Ministry of Foundation has the Volunteers in improving the quality of education. In Education of the Province of Catamarca, Argentina was the first step of Action program that reinforces other action in the cities of Apiaí (SP), Pedro an initiative to bring together various local structures in the promotion of Leopoldo, and Ijaci (MG), it assists 179 three projects, increasing its impact vocational training courses for the community. The partnership was led and reaching confluence of goals children and adolescents ages 6 to 16. by the Civic Unit of Catamarca. The agreement provided teachers and STUDENTS and interests. It is different because the equipment necessary. But the logistical support and dissemination completed of its focus on social projects as an Ideal Future: of the courses were the responsibility of the municipalities of Santa vocational opportunity for growth and personal encourages entrepreneurship and Rosa and El Alto where the InterCement plant is located. The support realization of employees, family creating jobs and income for young of the School Monotécnica No. 71 had a fundamental role in the speed courses of implementation of the activities. El Club Independiente in the city of members, customers, and suppliers. people between the ages of 16 and 29 in El Alto and Loma Negra Foundation also collaborated with the activity. In 2011, there were 63 volunteering partnership with entities such as Senac, Senai, and Sebrae. actions that benefited directly over In addition to community integration, the project promoted education
17,595 people and more than as a path of development and equal opportunities, resulting in the An action plan has been created in Argentina 52,000 indirectly. inclusion of young people into the job market. The virtuous circle created with the following program structure: by the initiative is spreading to neighboring cities and in September the STRUCTURAL PROGRAMS CDC of El Alto was formed composed of 17 entities. Social integration RecreAcción: In Brazil, the actions in the communities activities of young people in the region are already in the planning with a program aimed at encouraging activities funding from the Loma Negra Foundation. are organized in accordance with the to promote sports, entertainment, and structural programs of the Camargo culture. Its proposal is the responsible use Corrêa Institute: of free time as a tool to promote human and social values, teamwork, and development Ideal Childhood: a program of creativity. aimed at protecting the rights of
early childhood (birth to six years EducAcción: old) present in the municipalities of supports projects that propose actions to Ijaci, Apiaí, Bodoquena, Santana promote education in both a formal and do Paraíso, Pedro Leopoldo, and informal way. Cabo de Santo Agostinho. It has 22
projects that complement the actions Jóvenes en Acción: of government and communities. supports innovative projects that propose actions that promote job market integration Ideal School: directed at improving of young people at social risk.
40 41 InterCement Annual Report 2011
42 43 InterCement Annual Report 2011
Multiculturalism and integration
Multiculturalism and integration restructuring, which resulted in the are the keys to the development of formation of a new holding, InterCement InterCement. Knowledge and practices Participações S.A., with 99.9% of the come together in different countries with shares held by Camargo Corrêa S.A., diversity at its essence. The sum of the the holding company of the Camargo collective efforts and the combination Corrêa Group. The alignment of the between global and local are present business units and standardization of in the integrated management system, procedures brought gains of synergy which encourages the formation of and efficiency. The new corporate work groups and brings together ideas identity, sealed with the launching and values. of the InterCement brand, reflects the movement of internationalization An important step in the strategy of and the ability to bring people and sustainable growth was the corporate cultures together.
The company had 5,061 employees in December 2011.
The reorganization process done by the company in 2011 made the managing of all the processes more agile and efficient.
44 45 InterCement Annual Report 2011 Diversity that builds
Corporate governance
Committed to transparency of information BOARD OF DIRECTORS BUSINESS UNIT COMMITTEES behavior. The management is done to the market and to equal treatment to This is InterCement’s highest organ of InterCement has six standing Committees: by the Ethics Committee that uses an its stakeholders, InterCement conducts governance. It is up to it to establish the Executive, Sustainability, Audit and Risk external consulting company to receive its business based on good practices general business strategies and decisions Management, Occupational Health and the communications and feedback of of corporate governance. Its actions such as electing directors, defining Safety, Management, and Ethics They the actions taken. Confidentiality is are decided based on the guidelines of investment projects, and approving the are responsible for giving support to entirely guaranteed. The channels for sustainability expressed in its Sustainability multiannual plan and annual budget. the decision-making processes. These contact are by phone; 0800-7022312 in Policy and on principles of ethics and The board consists of five members: the committees are made up of members from Brazil and 0800-6660120 in Argentina. corporate responsibility. chairman, three vice-presidents, and one the Board of Directors and by executives The email address for both countries is counselor, all with a term of two years. and they have the mission of ensuring the [email protected]. In the quest for operational excellence, quality for checking relevant information InterCement initiated in 2011 the organizational EXECUTIVE COMMITTEE related to the Company’s business and restructuring process approved at the end of It consists of 12 executives who have developing long-term strategies. last year. The initiative aims to make decision- the responsibility to put into practice making more agile and efficient, contributing the actions necessary or convenient for CONDUCT AND ETHICS to the generation of value for its shareholders managing the business in line with the InterCement’s actions are also guided by and other strategic publics. The idea is to decisions of the Board of Directors and to the Code of Business Conduct adopted form a more participatory structure that is propose investment plans and programs by the Camargo Corrêa Group, which capable of making feasible effective strategic to expand and modernize the company. is available on the Internet and widely actions with a focus on lasting growth The directors meet twice a month and circulated among employees, suppliers, of the business. extraordinarily whenever necessary. customers, and other stakeholders. The document establishes standards and principles that should guide the behavior in the relationship with different publics: Ethics, Legality, Respect for human beings, Repudiation of any form of discrimination, Stimulation of personal and professional development, as well as Social, environmental, and cultural responsibility. The management of the Code rests with the Ethics Committee. In 2011, 27% of the job openings in Brazil The company also maintains an Ethics and 26% of those made Hot Line, a direct communication available in Argentina channel that is accessible to employees were filled by and other stakeholders. This tool can be used to make suggestions, INTERNAL All production units have comments, and complaints of improper their automated controls. RECRUITMENT.
46 47 InterCement Annual Report 2011 Diversity that builds
Management of human capital
The people management policy at The award involves employees at all DEVELOPMENT ACTIONS InterCement values skills and results, levels and takes place quarterly and providing fair working conditions and annually. The recognition does not Job Openings and You: intended to interests, skills, and opportunities for on Results, covering several levels from compensation, as well as giving priority provide cash prizes. Developed in 2011, announce the job openings in the company, occupational mobility. top management to coordinators. The to those already in the company the Recognition Program will be put into giving priority to internal recruitment and initiative includes semiannual meetings of for career advancement decisions. practice beginning in 2012. selection of professionals. Development Scholarship: annual executives from InterCement. Continuous improvement is encouraged training program for professionals in the and has alignment with the company’s QUALITY OF LIFE Young Professionals: a selection process of succession, recent promotion, Portal + Integration: this intranet tool strategic objectives. InterCement’s administrative reorganization, program of young professionals or other situations of changing positions was redesigned in the second half of 2011 with the installation of new headquarters in including training future specialists and and functions that require specific or with lighter interface and new services. The In 2011, 27% of the job openings in São Paulo, has brought gains to the routine project leaders. intensified training. portal, which is widely used by employees, Brazil and 26% of those made available in of employees along with providing a better brings together people, makes it possible Argentina were filled by internal recruitment. conformity of its infrastructure to its growth Succession Maps: constructed Development Program: in partnership to promote actions, and strengthens the The Hay system gives support to the plans. Parallel to the change is that the based on the evaluation of performance, with Dom Cabral Foundation and INSEAD, institutional culture. remuneration policy and is in agreement Quality of Life Program was launched in the these maps identify gaps, career in 2011 the program focused Orientation with the industry standards. The variable administrative headquarters in São Paulo compensation is based on reaching targets (districts of Nações Unidas and Jaguaré). and is adopted for all employees in Brazil Activities of health, leisure, and sports were and for managers and middle managers adopted as a pilot project to be extended in Argentina in accordance with the to all units. In the administrative areas, specificities of each country. the program includes workplace exercise programs, ergonomic analysis, quick With competence reaffirmed with the massage, and encouraging the creation company’s leaders in the year, focus on of jogging groups, but the unfolding of results has been the target of training the program will bring specific actions activities and reflection at various levels of according to the characteristics of each the organization. unit. ações específicas de acordo com as características de cada unidade. RECOGNITION PROGRAM InterCement created the Recognition program to give credit to employees Employees (at end of period) who have attitudes in line with its 6,000 values and behaviors, strengthening the 5,061 management model and contributing 5,000 4,808 4,751 4,787 4,000 to the organizational climate. The 4,000 The integrated recognition criteria are based on management system 3,000 communication and presentation, allows synergies and and are defined according to the 2,000 efficiency wherever the company is located. characteristics of each activity 1,000 based on topics such as safety, loss, and absenteeism. 2007 2008 2009 2010 2011 48 49 InterCement Annual Report 2011 Diversity that builds
On-the-job safety
HEALTH AND SAFETY behaviors and encourage motivation and commitment. The “diversity that builds” is applied to all Safety is a priority for InterCement, which the company’s processes, which include the creation has a full tool to protect the physical The Golden Rules have been launched in of multidisciplinary teams such as the OHSAS integrity of its employees. The company Brazil and reinforced in Argentina, which now has the challenge to internalize the highlight ten key points to minimize Committee of Ijaci precepts of safety in its institutional culture. the risk of accidents at the production units and are based on the history of The OHSAS 18001 certification process makes it possible for the Routines and processes to be followed by occurrences in the cement industry. The companies to critically evaluate their activities to detect and control all permanent employees and contractors employees signed their commitment to risks to health and safety. Through an integrated management system, All areas are set out in the Single Policy of Health, preventive actions that involve changes the focus of the work is on the zero accident rate in order to ensure the cooperated to Safety, and Environment. Best practices in their behavior and being concerned integrity of the professionals working at the Ijaci unit. are monitored by indicators and checked with their colleagues. identify risks by a specialized consulting company. To organize the action, the OHSAS Committee was created with members in the area of Health, Safety, and Environment (HSE), as well Two workshops on Transportation Safety as Operation and Management. Beyond the committee, the hard work The development of two skills is in sought to build closer ties with the carriers, had the collaboration of the entire HSE team and representatives from focus in order to bring about better giving greater attention and mobilization the areas that were active in identifying the hazards and risks. performance: the ability to perceive to the topic. Among the relevant actions
risks and safe behavior. To do so, four are signing the terms of agreement on The activities started in January 2011. Over 1,000 activities were fronts were created: technical, structural, safety of the operations, speed limits on mapped identifying 12,343 hazards— 242 significant risks were communication, and relationships with flows, training, and audits. identified and are being treated with an action plan for mitigation or suppliers. Training was given to internal elimination. New control systems, training, procedures, and tools were consultants and multipliers of health and created for OHSAS compliance. The external audit took place in two safety, leaders were engaged, and internal parts with it beginning in December and ending in February 2012 with committees were set up with the unification a recommendation for certification. of management tools in all units.
The methodology adopted includes reviewing real situations with field audits and identification of critical positions, collecting data through observation of everyday procedures, and signaling the causes of risky behaviors. Group and individual coaching along with moments of reflection in daily practice are instruments used for cultural change. The measurements have everyone’s The Golden Rules involvement, our own employees and highlight 10 key points contractors, as well as commitment from all levels, especially for the leaders. to minimize the risk Disciplinary actions are avoided. of accidents on the The intention is to reinforce positive production units. 50 51 InterCement Annual Report 2011
52 53 InterCement Annual Report 2011 Sustainable attitude
Strategy Risk of sustainability management
Sustainability is part of InterCement’s CO2 emissions per metric ton of cement In its management processes, managers, coordinators, leaders, and strategy and it involves all of its produced, which in 2011 was among the InterCement has tools that identify, outsourced professionals).
stakeholders from the perspective that lowest (531 kg CO2/ton of cement) from parameterize, evaluate, and propose business continuity includes being CSI’s global database (average 653 kg contingency or elimination plans of Added to this structure is an Audit responsible in economic, social, and CO /ton of cement). Another significant 2 adverse factors on its results. The and Risk Committee responsible for environmental aspects. The company advance occurred with the installation analysis of potential risks in all of its discussing and directing solutions for combines giving attention to results in the of continuous monitoring of pollutants operations is done by representatives themes related to risks, crises, safety, present with the preparation of a better in all of the company’s furnaces, which from various internal areas and follows accounting, and auditing. future both for business and for society, will enable pollution control in real time in a methodology of controls of the while being aware of the risks inherent to the cement kilns. The link with WBCSD Committee of Sponsoring Organizations its activities and the investments required also takes place in Argentina with Loma to constantly qualify its operations. Negra’s participation as a founding of the Treadway Commission (Coso). member of the Argentinean Business The fulfillment of this precept can be Council for Sustainable Development In 2011, the Integrated Risk Management seen all the way from hiring suppliers (CEADS) since 1992. project was completed that produced to launching products, leading to a the Corporate Risk Map and the Critical collective commitment with sustainable The Global Compact, an international Processes Map. This initiative has development. This view is consistent initiative to mobilize the business enabled InterCement to prioritize actions with the Cement Sustainability Initiative community led by the United Nations to mitigate the risks that are critical to (CSI), the cement arm of the World (UN), also guides the conducts the business. The new process, which Business Council for Sustainable of InterCement. Human rights, was adopted corporately, includes Development - WBCSD, an organization labor relations, environment, and unique compliance techniques such as of which InterCement has been a part anticorruption are topics treated in the self-assessment of risks and continuous since 2008. Among the commitments Compact’s ten principles taken on by the auditing. A strict Policy of Relations with and indicators to be monitored by the signatory companies. Competition (Antitrust) was also adopted company with CSI is the reduction of that strengthens proper behavior of
employees and the company’s practices
in relation to the market, avoiding situations that could be misinterpreted.
The Board of Risk Management and Audit, which has a manager for each business unit in Brazil and Argentina, is responsible for defining and updating the methodologies involved in the management project, as well as monitor The emission of CO2 per and train the teams so they can participate metric ton of cement effectively. InterCement believes that risk produced at InterCement management is an activity inherent to all of 531 kg is among the those involved in each process (directors, lowest in the world.
54 55 InterCement Annual Report 2011
InterCement follows the principles of eco-efficiency by using less and less natural resources and reducing impacts.
The main critical risks to the business The identified during the mapping process, Cost management and their mitigation processes, are InterCement conducts activities to Management as follows: monitor the evolution of costs and ISO 9001 expenses through the processes of of sustainability Unethical conduct and fraud Matrix Management of Expenses (GMD) certification is present in These risks are mitigated by an extensive and Matrix Management of Variable Internally, the engagement with the theme with practice in visual management. all cement plants. set of corporate policies, standards, Cost (GMCV). These tools organize manifests itself in different structures. The The tool “Sustainability Meter” completes and procedures that inform, among the management of package of fixed Sustainability Policy and Code of Conduct the system, providing an immediate other things, what and how InterCement costs (e.g. personnel, maintenance, define the principles of action together reading of how close InterCement, a understands that the activities and transportation, communications, etc.) with the Sustainability Committee and business unit, or a plant is toward reaching attitudes should be carried out. The and variable costs (e.g. energy and raw by specific corporate management. the targets. main ones are as follows: Code of materials), which are monitored by those Beginning at hiring, the professionals Conduct, Corporate Policy of Relations responsible for each group of expenses. receive orientation on these guidelines, Aligned with the Camargo Corrêa Group, with Competition (Antitrust), Corporate which are reinforced with training and InterCement uses specially designed Policy of Sustainability, and Crisis Environment capacity building. The system of evaluation instruments to promote sustainable Management Manual. The company at In its production processes, InterCement and approval of suppliers increases the practices among its employees. The the same time carries out compliance follows the principles of eco-efficiency reliability of the companies contracted. Sustainability Radar did the mapping of processes in order to make sure that with continually less use of natural In the financial area, the program Matrix the current practices in the group and these policies and standards are met. resources and reducing impacts arising Management of Expenses strengthens of its short and medium-term objectives, They are Ethics Line, Continuous from its operation. Its performance the monitoring of costs and expenses. setting goals and guiding the multi-annual auditing, Self-assessment of controls, in this regard is based on a sound planning and budget. On the other hand, and Audit of processes. corporate policy of its own as well as The management of indicators is the Sustainability Academy promotes common to the Camargo Corrêa Group. done through a computerized system expansion of knowledge and provided Reputation and image All environmental aspects involved that allows you to track the overall training during the year for internal InterCement established a crisis in the processes and facilities in the performance and of each unit as well. The audiences about climate change and management and communication policy industrial units are identified, registered, “traffic light”, as it is called, brings together carbon management. There is the Forum providing contingency plans applied in and managed on the basis of an economic, social, and environmental of Directors Guardians of Sustainability different situations that may represent environmental management system that aspects such as water consumption and to implement the corporate strategy, an impact on its image or reputation. follows the provisions of ISO 14001, as energy, and management of diversity. The which, among other responsibilities, well as relying on independent audits. sustainability indicators of the concrete takes care of the engagement of leaders Business continuity operations were defined in 2011, and will and employees. All executive officers The Risk Management methodology be integrated into the system in 2012. A have their variable compensation linked defines and monitors the tolerance routine for the presentation and discussion to sustainability, which can serve as a levels for each critical risk identified. of indicators at the units was also created reducer or multiplier. 56 57 InterCement Annual Report 2011 Sustainable attitude
Sustainability Commitments Environmental Scope Theme Target Status/Results/Comment management Environment CO2 emissions Keep the CO2 emissions of InterCement Met: The emissions from InterCement's cement activity resulted in (in kg CO2/ton among the companies part of the CSI 531 kg CO2/ton. Cement in 2011, below the 1st quartile of CSI of cement) with the lowest emissions (1st quartile) global (585 kg CO2/ton. Cement). See the charts and additional Environmental management at blast furnace cement. Produced in the considering the "Global" and information on page 60. "Geographic Regions" indexes InterCement is structured on the values factory of Catamarca, the cement has of caring and respect for life based a high content of blast furnace slag that NOx, SOx and PM Reach 100% of continuous measurement Partially met: The installation of the last online gas analyzer took on principles of mitigation of impacts reduces the consumption of clinker in (continuous of NOx, SOx, and particulate matter in place in March 2012. All furnaces that were in operation in 2009 monitoring) cement kilns by 2011 are with this continuous monitoring equipment. Information and risks to health and safety. To its composition by about 50%, making on emissions of these pollutants will already be available by this end, the company has adopted it the most sustainable cement currently next report. technological advances of production sold in Argentina: its production and process control in order to reduce generates less greenhouse gases and Restoration of Have restoration plans in the CSI format In progress: Initiatives are underway to develop corporate degraded areas for 100% of the mines by 2012 guidelines for the theme in order to develop and consolidate the the negative effects that its actions has a lower consumption of energy and restoration plans by December 2012. could cause in places where it is limestone. The blast furnace cement is installed. Among the advances made in used for building large structures such Social Safety Reach in 2012 the targets of TF and TG Four fatal accidents occurred in the operations of Argentina and 2011 was the consolidation of the waste as dams, bridges, and high resistance proposed below (*): Brazil in the cement, concrete, and railroad business. In order to make the company a benchmark in safety, a specific group was recycling project. construction projects. formed to achieve this goal by implementing the best practices in the market. The plan is to develop a vision of excellence in safety and health at all levels, to ensure that safety aspects are Loma Negra has developed cutting- CONTROL OF EMISSIONS embedded into the processes / procedures, and ensure safe edge products to the Argentine Cement production, because of the conditions at the workplace. market by combining innovation and characteristics of its process, causes
sustainability. In addition to porous high emissions of carbon dioxide (CO2) InterCement: TF = 2.22 and TG = 66 InterCement: TF = 2.33 and TG =1,198 concrete, an important solution to during decarbonation (burning of raw prevent flooding in urban centers, and materials for the composition of the Cement Operations: TF = 0.9 and TG =13 Cement Operations: TF = 1.29 and TG = 1,079 the concrete with recycled aggregates, clinker, cement based) and the burning which is environmentally beneficial, of fuels to power the furnaces. In Concrete and Aggregates Operations: Concrete and Aggregates Operations: TF = 5.75 and TG = 1,640 TF = 4.25 and TG =137 the company has also developed Brazil, however, the industry has some
Railroad Operations: TF = 5.97 Railroad Operations: TF = 7.24 and TG = 3,017 and TG = 258
Stakeholders Have in 2011 Engagement Plans with Partially met: Plans were drawn up for 90% of InterCement's stakeholders developed and implemented operations. For 2012, the goal is to have Engagement Plans for 100% of the plants of cement, for all units of Cement, Ferrosur, Recycomb, and Concrete. concrete, Recycomb, and Ferrosur. The aggregate business will have its plan drawn up by the end of 2013.
Have projects from the Camargo Corrêa Partially met: In 2011, 67% of the cement factories implemented Institute and Loma Negra Foundation the programs of the Camargo Corrêa Institute. InterCement is implemented in all locations where there expanding the introduction of its social projects as well to other are cement plants. businesses such as Concrete and Ferrosur.
Management Certifications Certify cement factories as listed below:
9001 - 100% by 2010 Met: All cement factories are ISO 9001 certified.
14001 - 100% by 2014** In progress: 53% of the cement plants are certified In progress: The Ijaci factory received this certification, representing 7% of 18001 - 100% by 2015*** the units.
(*) Considering own employees and contractors of all operations (**) The original target of 2012 was revised due to the decision to focus efforts in the unification and integration of systems and databases. (***) The original target of 2014 was revised due to the decision to focus efforts in the unification and integration of systems and databases.
58 59 InterCement Annual Report 2011 Sustainable attitude
environmental advantages due to the of polluting gases resulting from its Evolution of the specific emission possibility of adding more slag and other logistics and air travel. Member of the Thermal substitution Thermal matrix (%) of CO (kg CO2 / ton cement) 2 materials that reduce the emissions. public record of the Brazilian GHG by co-processing 700 653 in Brazil reached 615 InterCement, through its strict control Protocol Program, the inventory for 567 4.0 6.0 7.5 600 and monitoring systems, manages to 2010 obtained the Silver Category for 13.3 16.0 544 535 533 530 531 14.0 12.0 12.0 21.0 remain below the national average and the quality of data submitted. 500 12.0 be a benchmark for its low emissions. 12.0 400 21.0 25.0 25.0 The company has the challenge of 9.96% 12.0 25.0 300 Since 2007, the monitoring of certain becoming one of the companies with surpassing the target 25.0 for the year. 25.0 200 work fronts with greenhouse gases the lowest emissions of GHG in the (GHG) is done on annual inventories world, and to do this it has defined work Co-processing 100 conducted in accordance with the fronts with actions, responsibilities, and 58.0 57.0 49.5 43.7 41.0 36.0 Mineral coal 0 protocol of CSI and the Green House targets. It develops several research 2007 2008 2009 2010 2011 Charcoal Gases Protocol, a set of standards and development projects in order to Petroleum coke InterCement CSI-Latin America and tools to measure these emissions. reduce emissions and it is part of the 2009 2010 2011 2012 2013 2014 CSI-Global CSI-Brazil The inventories are subject to external Brazilian platform of Companies for the verification and cover 100% of the Climate, taking on the commitment to operations. The company increased create policies and management plans its scope to include indirect emissions of polluting gases. The sustainability
project in concrete called 8k was The latter, acquired in 2011, made the There was an increase of 50% in the Evolution of absolute emissions continued in 2011. The result for the company self-sufficient in energy. rate of thermal substitution in the units of (million tons of CO2) 6.618 7.359 8.0 year was 8.9 kilograms of cement per Brazil. R$ 35 million was allocated during 0.037 6.021 0.038 0.276 5.826 0.285 MPa (Mega Pascal, a measurement of 7.0 The higher consumption in production, the year to building projects related to co- 0.038 5.619 0.036 3.210 3.612 compressive strength), a 4.5% reduction 0.318 however, is thermal energy. In order to processing such as building a platform 6.0 0.037 0.234 0.235 3.453 compared to 2010. The goal is to reach 3.000 replace traditional fuels that are more for blending (mixing and preparation of 5.0 3.210 8 kilograms per MPa by 2014 with the pollutant, InterCement is increasing its waste for processing into fuel) at Ijaci 4.0 application of all the environmental use of co-processing, which is a system and structural improvements to enhance 3.399 possibilities of the product such as 3.0 3.339 of burning industrial and urban waste such the co-processing in the units of Pedro 2.760 recovery of aggregates, use of recycled 2.530 2.0 as tires, plastics, and paints. The supply Leopoldo and Apiaí. 2.137 water, and waste minimization. 1.0 of waste is secured by long-term contracts colocar ferrosur no lugar de with industrial generators that provide even In Argentina this practice is still in the initial Cal. Arg (trocar apenas a 0 ENERGY PRODUCTION
ordem, as cores estão 2007 2008 2009 2010 2011 favorable costs for the company. development stage. Actions were taken corretas. Energy for production is another factor Cement Brazil Cement Argentina Cal. Arg. Ferrosur in 2011 to expand the shredder and bulk segue ordem: strongly monitored at InterCement. To Concrete Aggregates Recycomb In 2011, InterCement reached a thermal cargo of Solid fuel at the Recycomb Plant, ensure the use of renewable and reliable Cimento Brasil substitution by co-processing record in Cimento Argentina Aggregates began to be recorded in the year 2011 and there were emissions of 8,800 tons, equivalent to 0.1%. installation of solid injection system to the At Recycomb, the emissions reached 631 tons in 2011, equivalent to 0.01% of total emissions. energy, the company invests in the Ferrosur With Concrete, there were 25,556 tons of emissions of CO2, representing 0.3% of InterCement's emissions. Ijaci with 20.01%. The overall rate in Brazil furnace at the L’Amali Plant, and acquisition Concreto industry by participating in three initiatives Agregados reached 9.96%, an increase of 25% over of mobile equipment for grinding scrap Recycomb in the area: Machadinho HPP (1,140 MW the previous year and exceeded the target, pallets at Recycomb. - 6.35%), Barra Grande HPP (690 MW - which was 7.5%. 9%), and Estreito HPP (1,087 MW - 4.4%). 60 61 InterCement Annual Report 2011 Sustainable attitude
Investment and future vision
InterCement’s investments are focused on sustainable growth and the Investments (R$ million) internationalization of the business. Because of this, R$ 579 million were 700 invested along these lines, which is 600 579 91% higher than the amount invested in 2010 (R$ 302.3 million). The size of 500 investments, both in proportion and in 400 absolute numbers, gains even more 302 prominence with the company’s low level 300 270 263 of indebtedness, which makes room for 200 177 new market movements.
100 The funds were directed in 2011 to strategic projects aimed at ensuring 2007 2008 2009 2010 2011 market share in Argentina and preparing Brazil’s operations for the growth planned of the markets. Among the initiatives contemplated by the investment plan are the construction of new units and Distribution of investments increased production capacity, the development of programs to improve products, services, processes, and 10.81% systems, as well as the improvement 4.39% 0.02% of corporate governance and training of personnel.
Cement Concret and aggregates 84.78% Railroads Energy
The volume of investments grew 91% over 2010. 62 63 InterCement Annual Report 2011 Sustainable attitude
IN BRAZIL capacity from 325 to 400 metric tons Located on the border between the tons / Buenos Aires. The investments InterCement obtained a deployment per hour. A credit line of states of Maranhão and Tocantins, also covered improvement projects in license and a permit to start the the first turbine started commercial logistics with the duplication of Ferrosur construction of cement grinding in InterCement also invested in improving US$ 52 million operation in April 2011 and in December railways and increasing the number of Cubatão (SP), expected to begin the energy efficiency in its Brazilian will enable the there were already four machines in wagons and locomotives in order to operations in October this year. The factories. R$ 35 million was allocated for construction of the operation, and the last one (eighth) improve the transportation capacity project includes a mill, packaging center, construction projects such as building Yguazú Cement factory should be connected by October this between Lomaser and L’Amali. and a pallet machine with a capacity a platform for blending, mixing and in Paraguay. year. With this acquisition, InterCement of up to 880,000 tons of cement/year. preparation of waste for processing reaches almost 100% of self-sufficiency In Paraguay, efforts were focused on The new unit will allow the company to into fuel, at Ijaci (MG), and structural in electricity production. approving a credit line of US$ 52 million increase its production capacity and improvement projects to increase co- from the Interamerican Development improve logistics efficiency and the processing at Pedro Leopoldo (MG) and OTHER COUNTRIES Bank for the construction of the quality of its customer service in the Apiaí (SP). The idea is to increase by 50% Investments were announced in Yguazú Cement factory. The new unit southeast region. the thermal substitution rate in the units. Argentina to increase capacity for the will become operational in 2013 with a next five years. Among the actions production capacity of 400,000 tons a Funds were also approved for the Another action was to acquire a 4.4% highlighted is the construction of a new year of cement. expansion of the production capacity of stake in Estreito Energy Consortium plant in San Juan (region of Cuyo) with a clinker in one of the furnaces of Apiaí (CESTE), formed to build and operate a production capacity of 900,000 tons In December 2011 the company signed (SP) and Pedro Leopoldo (MG), an action the Estreito Hydroelectric Power Plant of cement a year. Also in Argentina, a contract for the construction of an that will result in an additional 94,000 (Estreito HPP). Considered one of the resources of US$ 75 million were integrated cement plant in Angola with a tons/year and 400,000 tons/year, largest power generation projects currently allocated for expansion projects. Among production capacity of 1.9 million tons a respectively. Likewise, the cable car at underway in Brazil, the Estreito HPP has them was the inauguration of a new year and the beginning of operations by Apiaí underwent an overhaul in order an installed capacity of 1,087 MW and cement mill in L’Amali, which doubled December 2014. to increase its limestone transportation assured energy average of 584.9 MW. the production capacity to 2 million
L’Amalí Unit in Argentina will have a new cement mill.
64 65 InterCement Annual Report 2011 Sustainable attitude
Teams of the good
OUTLOOK improvement and establish new actions To have a “sustainable attitude” means to think InterCement believes that 2012 will be that translate into productivity gains and of the business in all its dimensions, including its the year of maturity in its transformation cost savings. process. With the new consolidated integration in the community. A real “army of good” organizational structure, lower costs, Among the major challenges that brought about improvements in 19 institutions in the healthy cash generation, and especially InterCement must face to reach its city of Pedro Leopoldo in the Day of Doing Good. appropriate capital structure and target is the search for continuous investment discipline, InterCement is increase of the productive capacity of prepared for growth in the coming years. its units. That is why it has prepared an Created by the Camargo Corrêa Institute, the program brought investment plan of over R$ 3 billion over together 1,920 volunteers in Pedro Leopoldo including own and third- The Army of party employees, family members, and people from the community. The company is investing heavily to grow the next years, which does not include The actions focused on schools, daycares, and maternity clinics for Good had InterCement wants to reach a consistently and not only be among the mergers and acquisitions. This volume of pregnant women benefiting more than 7,000 people from the local top 20 cement companies in the world resources will ensure substantial growth communities. Among the activities carried out, we highlight the changing 1,920 by 2016, but also to be one of the five in production volume in the countries of roofs, painting, facility improvements, and general remodeling. most profitable and efficient. To reach where it operates and new capabilities VOLUNTEERS 20% this it needs committed, qualified, and in Paraguay and Angola through To make the day even more special, a large Street Entertainment was market share in Brazil motivated people, as well as a strong expansion projects and construction of organized with several attractions. It was the space for presentations by 2016. and efficient management system. new factories. of the own students (with parade of recycled clothing, hip hop shows, Added to this structure is the Reduce to among others), environmental awareness work with the distribution Add program launched in 2011 in order InterCement expects to reach a of seedlings, health care with measurement of blood pressure and to identify opportunities for process 20% market share in Brazil by 2016, glucose levels, and many toys such as a ball pool and trampoline. taking on the second position. In To top it off the participants received free cotton candy, popcorn, hot Argentina, the focus is to be the first dogs, and soft-drinks. in profitability while maintaining market leadership. In Paraguay, the effort will be to consolidate second place in the ranking. The strategic objective also includes becoming the second largest cement company in South America with a selective participation in Africa.
To increase its presence in the Brazilian market, InterCement plans on starting to have operations in the north part of the country by building a cement factory and a logistics infrastructure. To do this, it is carrying out feasibility studies of the project, which involves environmental issues and infrastructure, as well as technical and operational aspects of the business.
66 67 InterCement Annual Report 2011 Orientação para Resultado
Corporate information
BOARD OF DIRECTORS Eduardo Blake Chairman Juan Masjoan José Édison Barros Franco Superintendent Vice-Chairman Gerardo Diez Albrech Curt Reuter Domenech Loma Negra C.I.A.S.A. Vice-Chairman Reconquista, 1088 André Pires de Oliveira Dias piso 7º – C1003ABV Vice-Chairman Buenos Aires – Argentina Luiz Roberto Ortiz Nascimento Phone: 54 11 4319-3000 Board Member Vitor Sarquis Hallack FERROSUR Chief Executive Officer KEY EXECUTIVES Luis Guillermo Roberto Irlicht Managing Director Ferrosur Roca José Édison Barros Franco Reconquista, 1088 Operations Vice-President piso 7º – C1003ABV Ricardo Fonseca de Mendonça Lima Buenos Aires – Argentina Corporate Directors Phone: 54 11 4319-3000 André Gama Schaeffer Claudio Palaia PARAGUAY BUSINESS UNIT Cleber Acurcio Machado General Manager Gueber Lopes Cleber Ceroni Jorge Eduardo Martinez Yguazú Cementos Luiz Augusto Klecz Av. Artigas, 1921 - Piso 3º Nelson Tambelini Júnior Edificio Automotor Ricardo Frederico Buarque Barbosa Asunción – Paraguay Corporate Superintendents Phone: 595 21 281-822 Adriano Augusto Nunes Pereira Silva Horácio Ardiani ANGOLA BUSINESS UNIT Marcelo Arantes Chief Executive Officer Ricardo Bonazzi Sérgio Bandeira Sergio Faifman Palanca Cimentos Al. Manuel Van Dunem, 308/310 BRAZIL BUSINESS UNIT Luanda – Angola Chief Executive Officer Phone: 244 9333302889 Ricardo Fonseca de Mendonça Lima Directors PORTUGAL OFFICE André Gama Schaeffer Chief Executive Officer Carlos José Cantú Daniel Antonio Biondo Bastos Cleber Acurcio Machado Av. da Liberdade, 230 - 7º. floor Dorivaldo Ferreira 1250-148 Lisbon – Portugal Rubens Prado Valentin Júnior Phone: 351 213 569860 InterCement Brasil S.A. Av das Nações Unidas, 12.495 AUSTRIA OFFICE 04578-000 – São Paulo – Brazil Chief Executive Officer Phone: 55 11 3718-4200 Tim Kuba Hohenstaufengasse, 10 1010 ARGENTINA BUSINESS UNIT Vienna – Austria Chief Executive Officer Phone: 43 1 235 0077 2806 Osvaldo Jorge Schütz Directors Ariel Damiano Armando Silva
68 69 InterCement Annual Report 2011
CREDITS
General coordination Executive Committee
Corporate Communications Coordination Fernanda Guerra Tatiana Nelsen
Concept and graphic design unodesign
Content and editorship Editora Contadino
Translation Scientific Linguagem
Pictures InterCement File
Alê Borges (cover and pages 4, 5, 9, 16, 17, 28, 29, 30, 34, 35, 42, 43, 52, 53, 56, and 57)
Printing Interfill
70 71 InterCement I ANNUAL REPORT 2011
ANNUAL REPORT 2011
Result- Oriented
Joining efforts, ensuring results