6 CBC | 2014, May 20 Growth and Sustainability at

Edvaldo Araújo Rabelo Votorantim Cimentos Overview A global, vertically-integrated building materials company

11% North 6th largest cement player America in the world (ex-) in terms Europe, of cement installed capacity. Africa 58% and Asia South 31% America (including ) 54 Mtpy

Presence in 14 countries Votorantim Cimentos Overview Leader in Brazil with more than 460 Sites

Company Overview Global Footprint Products: cement, ready-mix , aggregates, dry mortar, hydrated lime, gypsum and agricultural lime

North More than 80 years of experience in America the sector st 1 phase Asset Swap Pioneer in co-processing and pozzolan South technologies in Brazil America expansion Cimpor Partnership with 21.2% stake

20012001 2007-2009 2010-2011 2012 Votorantim Cimentos Overview Complete Product Portfolio in Worldwide Operations

FOTO Cimento FOTO Agregado

READY-MIX MORTARS AND CEMENT CONCRETE AGGREGATES OTHERS 54 Million t 14 Million m3 40 Million t 34 cement plants 328 ready-mix plants 84 aggregates facilities 2.5Million t 22 grinding mills 13 mortar plants

One of the most vertically integrated players in the sector WE’VE BEEN WORKING TO SUPPORT THE BRAZILIAN GROWTH RR IN 2008 WE SET AN AP AMBITIOUS ORGANIC GROWTH PLAN AM PA MA CE RN PI PB PE AC TO AL RO BA SE

MT GO DF

MG MS ES SP RJ PR Existing lines 2008 New lines by 2010 SC RS 20072008 2010 2013 2015 2018 RR AND DESPITE THE AP GLOBAL CRISIS IN 2008, Barcarena Pecem WE DELIVERED: AM MA PA CE Xambioa RN PI PB Poty W3PE e 4 AC TO AL RO Porto Velho BA SE Nobres - Poz + 4,5Mt capacity MT Aratu GO DF

+ more than R$ 1 bi invested Itaú de minas W1 MG MS ES SP + 10 New expansion projects RJ PR Santa Cruz Existing lines 2008 Santa Helena W3 New lines by 2010 SC RS 2007 2010 2013 2015 2018 TO SUPPLY OUR RR COSTUMER’S CONTINUOUS AP NEEDS AND COUNTRY São Luís

GROWTH AM PA MA CE RN PI PB PotyPE AC TO Laranjeiras W1 AL RO Cuiabá BA SE + 10,5Mt capacity MT GO DF

+ more than R$ 2.5 bi invested MG MS ES SP + 11 new expansion projects Salto de Pirapora W5 RJ Santa Cruz PR Santa Helena Existing lines Rio Branco W9 Capivari de Baixo SC New lines by 2013 Vidal Ramos Imbituba RS 2007 2010 20132013 2015 2018 RR DESPITE THE DIFFICULTIES IN AP THE LICENSING PROCESS AND Primavera THE SKY ROCKETING CAPEX Sobral e Pecem AM COSTS PA MA CE RN Xambioá PI PB Paraiba PE AC TO AL RO BA SE

MT Formosa Expansion Plan GO DF Edealina 39% MG MS 32% ES 22% SP 26% Existing lines RJ PR Cajamar New lines by 2015 Plants under Licensing SC RS 2007 2010 2013 20152015 2018 Votorantim Cimentos Overview Expanding our footprint outside Brazil

USA

Peru

Argentina Worldwide Growth Strategy

Presence in 14 countries and INCREASING CAPACITY Every new project uses best sustainable technologies and is aligned with the sustainability strategy of VC

VC Expansion SUSTAINABLE STRATEGY + TECHNOLOGY Sustainable Technology

To build all of this, we are using the best available technology ( BAT ) to guarantee a sustainable growth.

Sustainable Equipment BEST AVAILABLE TECHNOLOGY

High technology Baghouses

SNCR systems for NOx Low NOx abatement Calciners

R&D Continuous Cementitious emissions Materials and monitoring Co-processing Sustainable Equipment BEST AVAILABLE TECHNOLOGY

High technology SNCR sytem for NOx Co-processing Baghouses abatement

Cementitious Materials Low NOx Calciner Continuous emissions monitoring VC Sustainability Global Sustainability STRATEGY Megaforces Our Sustainability Strategic Plan is based on Four Components and Composed by Four Principles:

Stakeholders’ Sustainability VC’s Vision Safety Always First Expectations Strategy Communities Close relationship & Engagement Local Development Ethics and Green Rules & external established commitments Compliance Established Commitments Eco-efficiency Reducing Our Footprint and Serving Our and Innovation Costumers with the lowest impacts Safety Always in First Place

Historical Global VC Global Safety Policy Safety Alerts Managing by Frequency Rate and Life Saving Rules Walking Around . Visible Leaders . Pragmatic Actions

100% 50% Right of Refusal 2010 2013 . Human Rights Historical Global Frequency Rate Create a close relationship with the communities Communities nearby worldwide operations by investing in Engagement social projects

Our strategy is Improving the communities life quality promoting local development Economic Sustainable To work closely and Votorantim in partnership with growth development the localities where the company is placed:

Focus on United Nations Millennium development goals Create a close relationship with the communities Communities nearby worldwide operations by investing in Engagement social projects Create a close relationship with the communities Communities nearby worldwide operations by investing in Engagement social projects

Education & Development . R$ 62 million invested . 40 projects . More than 2000 youth . 25 cities . 65% of employment rate . More than 1000 . 8% dropout rate families impacted

Job Creation

Public Management Support . Focusing on the local development . Modernization & public . 13 locations administration management . More than 200 community leaders trained . 12 cities Community Council Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

Important Partnerships & Established Commitments

Global Report Iniciative Global Compact Cement Sustainability Initiative The Company Charter of the Cement Sustainability Initiative

CO2 and Climate Protection Local Impacts on Land and Communities Responsible Use of Fuels and Raw Materials Reporting and Communications Employee Health and Safety Assurance • CO2 emissions data Emissions Reductions • Safety data • Nox, Sox and dust emissions data Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

Our Actions Towards Biodiversity

Develop, implement and disseminate best practices Karst mining areas and Atlantic Rainforest Contribute to biodiversity conservation and protected speleological Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

fresh concrete Recycling as 2 hardens 3 aggregate

Concrete Zero Loss Program

fresh concrete 1 recovering using Recycling C&D additives 4 Waste Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

Our CO2 Footprint Sustainable Our Emissions Evolution* Product Portfolio Levels Evolution reduction (low footprint) 20% PM reduction 45% 77%30 % 70%70 %

1990 2013 1990 2013 2000 2013

Global kg CO2 /ton cement % Sustainable Product in Global PM (g/ton clk) *VCBR/VCNA Portfolio (low carbon) in Brazil Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

Our Thermal Energy Alternative Fuels Matrix Evolution

Thermal consumption reduction 21% 16 Plants with alternative fuels

+ 800 k tons (waste, tires and biomass)

1990 2013 More than R$300M Global Thermal Energy capex in the next 5 Matrix years Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

R&D - Algae Farm in St. Mary’s CO2 water

UV light Carbon dioxide Baghouse Growth emissions turned tank algae slurry into energy • Currently Re-tooling Pond Biofuels Algae Project with to power plant new lighting and Drier algae cake Filter instrumentation. to to pyro press • Technology is working and scale-up engineering underway • Increase Academic Collaboration Eco-efficiency Innovate to increase product and service value while optimizing the use of resources and reducing and Innovation environmental impact that can cause risks for the business

R&D - Use of Low Carbon Content Cementitious Materials Porto Velho Pozzolan Plant Built to Supply Santo Antonio and Jirau Hidro-Power Plants Reduction on Clinquer Factor 11% Santa Cruz Granulated Slag Plant 81 73 1990 2013 Global Clinker/Cement Ratio Capivari Fly Ash Plant Thank you!