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Strength.Performance.Passion.

COMPANY BACKGROUND

Holcim is one of the world's leading suppliers of cement and aggregates. It holds interests in

more than 70 countries on all continents. Holcim Philippines is a member of the Holcim Group. It is

involved in the manufacture, sale and distribution of cement and ready mix concrete. It is

committed to managing resources responsibly and working with communities to develop

sustainable options for their future.

Holcim established its presence in the Philippine cement industry in 1974. Today, Alsons

Cement Corporation and Union Cement Corporation have come together to move forward as a

stronger Holcim Philippines.

Maintaining its unique homegrown identity and heritage of strength, resilience and

consistent financial performance while taking advantage of the support and resources of a global

brand.

Nationwide, we are powered by a strong workforce that forms part of the global network, as

well as a worldwide resource of innovative minds.

The Holcim Group holds majority and minority interests in more than 70 countries on all

continents. From its origins in Switzerland, the Group has grown into a global company with market

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presence in over 70 countries on all continents. The Group employs some 90,000 people. Holcim

initiated production of cement in 1912 in the village of Holderbank, (Lenzburg district, Canton

of Aargau, ca. 40 km from Zürich) and used the name Holderbank AG until 2001 when they changed

it to Holcim from Holderbank and cement. It is currently (2009) the second largest cement

manufacturer in the world, just behind Lafarge.

MISSION STATEMENT

Our mission is to be the world's most respected and attractive company in our industry - creating

value for all our stakeholders.

VISION

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

GOALS

Company goals are:

Continually set the highest standards of customer satisfaction in our industry

Secure the strongest competitive position in our markets

Partner with suppliers to deliver value-for-cost procurement for the Group and our

customers

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Be recognized as an employer of first choice

Empower our employees and integrate them fully into our global network

Selectively grow our worldwide presence of companies

Demonstrate our commitment to sustainable development

Be acknowledged as a valued and trusted partner in our community

Be the most recommended stock in our industry

TACTICS

A company rooted in unwavering values, Holcim keeps ahead of change, reaping

opportunities for growth because we believe that values is a driving force for change.

A partner in nation-building

We have a strong commitment to the local community.

Customized solutions

We customize our solutions to suit your particular requirements.

Sustainable practices

We provide sustainable operations in communities where we operate while maintaining strong

business performance.

Simple and transparent processes

We are simple and straightforward in our business dealings.

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Consistent availability

Our people, products, and services are available to you at all times.

Valued expertise

Armed with global expertise and a resilient local spirit, we are dedicated to delivering the best

results.

Creative ideas

We encourage continuous improvement of our processes, products and services.

STRATEGY

As one of the world's leading producers of building materials, Holcim aspires to be the most

respected and attractive company in the sector - creating value for all our stakeholders. Our strategy

is based on three central pillars: focusing on the core business, geographical diversification and

balancing business responsibility between local and global leadership.

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Product Focus

Innovative, application-driven, high-quality products make us the provider of first choice. Among the

reasons for Holcim's lasting success is a product strategy with a focus on the production and

distribution of our core products - cement and aggregates - both of which are key basic materials for

construction.

The main focus of investment is the processing of raw materials. The production of cement and

aggregates, for example, requires a great deal of process know-how, and is a highly capital-intensive

process that ties up assets over the long term. Because of the continuing demand for new

production facilities and rising building costs, capital expenditures for cement production have risen

substantially.

Geographic diversification

Holcim is more globally active than any other building materials group, with a strong foothold in

each individual market.

Local management, global standards

Our success lies in striking a balance between local responsibility and global leadership.

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OPERATIONS

Holcim continuously carries out intensive research into new products and expert production

systems, enabling us to offer our customers superior product performance and efficiency gains.

Innovation along the value chain also helps us to promote new methods in the construction

materials industry, and we support research and development into eco-efficient and sustainable

solutions. This is all the more urgent because the built environment accounts for some 40 percent of

energy consumption in the world today (EU estimate).

By extending our product range, we are able to:

improve our ecological profile in many markets, by focusing our research and development

activity on eco-efficient products and services

offer customers bespoke, application-specific solutions using composite cements and

concretes

take a holistic view on system solutions that encompass the entire process, from the

manufacture of the product, through use, to end of life and recycling.

Process Innovation

Holcim has been involved in developing and introducing new production technologies for

many years. The main focus of this process innovation is on cutting costs and increasing the

environmental efficiency of our facilities.

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In Switzerland alone, Holcim currently has more than 12 research and development projects

underway at leading universities and research institutes, all of which are being led by Holcim

technical specialists.

One area where Holcim's leading role in environmental protection is apparent is in the

special platforms needed for the preparation and use of alternative fuels and raw materials.

Through these, Holcim seeks not only to substantially lower the emissions from its kiln systems, but

to promote the use of such eco-efficient materials.

Holcim also conducts intensive research into critical mechanical plant components, to

enhance the reliability of a wide range of machines, as well as to reduce investment costs. One

example is the multi-drive concept, a new drive system that will be used for the first time in the

grinding plant being built in Rouen, France. Developed in close cooperation with Pfeiffer AG and

Flender AG, the drive - based on several, interlinked standard gears - allows mill gears to last longer

and reduces the need to stock spare parts.

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PRODUCT DESIGN

-IDEA GENERATION

CEMENT HISTORY

Antiquity

Precisely when master builders began using binders in

construction cannot be ascertained, but traces of lime mortar

have been found in structures in Turkey that are over 14,000

years old. In the high cultures of Mesopotamia (before 2000 B.C.) and Egypt, builders used burned

lime. The Egyptians used it as a binder to construct the pyramids (before 2600 B.C.). We know that

the Phoenicians (before 1000 B.C.) mixed their mortars with ground volcanic rock or ground brick,

thereby producing binders that could set even underwater. Greek colonies in southern Italy dating

from about 150 B.C. feature masonry walls that consist of two neatly laid faces and the interstitial

cavity filled with a mix of mortar and rubble or stones, called emplekton.

Roman Era

The Romans developed the technology further. They were

the first to use concrete, constructing with it foundations,

building components, aqueducts, and quay walls. Their opus

caementitium, from which our current word "cement" is

derived, was of such high quality that structures built with it

still exist today. Large parts of the Colosseum in Rome are

made of Roman concrete. Another famous example of

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Roman concrete architecture is the Pantheon in Rome, which was begun in 27 B.C. Its concrete

dome with a diameter of 43 meters was outdone only by steel-reinforced structures, for example,

Century Hall in Breslau, with a clear span of 65 meters, built by Max Berg in 1912.

The constituents of opus caementitium, Roman concrete, are burned lime, water, sand, and broken

stone. Roman master builders also mixed pozzolan and ground brick into their concrete, thereby

producing a building material that also hardened and remained firm underwater. Lime burners, or

magister calcariarum, burned lime at about 1000°C. Pozzolan is a type of natural stone, mainly

volcanic ash.

Middle Ages

The knowledge of opus caementitium was lost with the fall of

the Roman Empire. In many cities the predominant

construction technique was half-timbering infilled with

wicker or wattle and daub. For the construction of masonry

buildings, builders chiefly used air-hardening lime mortars such as loam-lime-sand mortar or loam-

lime mortar. These mortars are not water resistant and are not particularly durable. Some

foundations were made of mortar containing ground brick.

17th Century

In 1648, brisk trade in tuff rock from the Eifel began between Germany and Holland. The Dutch

ground the porous volcanic rock and named it trass. The material was used to make mortar that

could harden underwater. Dutch trass was also a sought-after commodity abroad.

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18th Century

For the construction of Eddystone Lighthouse at Plymouth, Englishman J. Smeaton (1724 - 1792)

needed a water-resistant mortar that could set underwater. He learned through his experiments

that lime created by burning alumina and limestone possessed hydraulic properties, that is, it

hardened with the addition of water - both in the air and underwater - and it also remained solid in

water. The binder, burned marly lime, was named "Roman cement." Today it is called Roman lime,

because it was not burned at 1450°C, the standard temperature for cement. By the end of the 18th

century the "ideal" blend for Roman lime had been determined: 25 to 30 percent of alumina was

added to the limestone before burning.

19th Century

In 1824, Englishman Joseph Aspdin burned a blend of lime

and alumina. Using this binder he produced artificial stone

that matched the color of the often-used limestone from the

Portland peninsula on the English Channel. He therefore

named his product Portland cement. This binder was also not

yet a cement by current standards; as the firing temperature

had not yet reached the sintering point of about 1450°C. This

was first achieved by his son William, at the newly

established factory for Portland cements. During the

construction of the Parliament building in London, builders ascertained that the binder from this

factory was superior to Roman cement. Isaac Charles Johnson first recognized the importance of

burning at high temperatures in 1844.

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In 1862, E. Langen in Germany discovered that the strength and sulfate resistance of cement could

be enhanced by the addition of blast-furnace slag that had been rapidly cooled and substantially

glassified.

20th Century

Selected raw-material mixtures and special grinding allow the production of cements with various

properties, such as fast or slow setting, high strength, and sulfate resistance. Self-compacting

concrete can be made using cement with appropriate additives for vibration and de-aeration

-CEMENT MAKING PROCESS

1. Extraction and crushing

Raw Material extraction

The cement production process begins at the quarry with the study and evaluation of the

raw materials (limestone and clay) that are necessary in the cement production process. Once the

raw materials are evaluated and found suitable for cement production, the quarry’s concession /

exploitation permit is applied for with the respective authorities.

In order to complement the mining assessment, additional geological studies are

undertaken. Finally, plans to exploit the quarry are defined and the extraction process starts:

drilling, blasting, loading and transport of the raw materials to the crusher.

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Crushing

The crushing process reduces the size of the extracted rock down to a size that is suitable for

conveying and feeding to the grinding process.

2. Pre-Homogenization

The crushed raw material is transported from the quarry by a conveyor belt, analyzed on its way

with on line analysis equipment and finally stored in the pre-homogenization beds. Raw materials

are built up in two horizontal piles and extracted by cutting vertical slices. This method of storage

and recovery greatly reduces the variability of the incoming rawmaterials.

The extracted pre-homogenized material is transported to a silo from which the raw meal mill is

fed. At the raw mill site, corrective materials such as iron minerals corrective limestone or sand are

added to the mixbefore it enters the raw mill.

3. Clinker Production

Raw Material Grinding

The raw materials which have a maximum size of about 10 cms are then fed to the raw

grinding mill. This is generally a vertical mill with 3-4 rollers and a rotating table. Material is dragged

under the rollers and is simultaneously dried and pulverized.

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The pulverized material is transported by the hot gases coming from the kiln system to the

filters, where it is separated from the hot gas and conveyed to the homogenization silo.

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

for clinker production.

Clinker Production

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

takes place. The ground and homogenized material is transported to start the transformation

process of the raw materials to create clinker. The fine raw material

4. Grinding and storage

Clinker from the clinker cooler is transported to storage silos or halls from where it is later

recovered and fed to the clinker grinding mills. Clinker grinding mills, which may be vertical types or

ball mills may be equipped with pre-grinders or crushers. On netry to the mill the clinker is mixed

with gypsum and other materials. The proportions of these materials, composition of the clinker and

the fineness to which the resultant cement is ground will determine the cement type and

characteristics.

Mills are normally equipped with classifiers which return oversize product back to the mill for

further grinding.

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5. Packing and dispatch

The cement is transported to storage silos, from which it is later extracted to be distributed in

bags or bulk.

When the customer purchases cement in bags, the packing operation is performed with packing

machines that automatically fill the bags (normally 25kg, 40kg,or 50kg) and drop them to the

transport conveyor, for direct delivery to customer vehicle or to a palletizer which allows product

to be packaged, stored and loaded on demand. When the customer purchases bulk products, the

cement is fed from the silos directly into the delivery tanker.

The dispatching department is where the cement loading takes place according to the customer

order. Bulk dispatch areas are often unmanned whereby drivers access the products as required

according to predefined orders.

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-AGGREGATE MAKING PROCESS

1. Quarrying

Quarry - the quarry is worked in a series of benches (platforms) separated by near vertical faces.

Carefully planned blasting operations consisting of a series of small explosions breaks up the solid

rock.

2. Loading & hauling

Loading & hauling - the blasting is planned to minimize noise and vibration, and assist in creating

uniform size fragments of rock. This rock is then loaded by hydraulic shovels on rubber-tired front-

end loaders for transportation to the processing plant.

3. Conveyor

Conveyor - raw material is then transported from the quarry using conveyors, rail wagons or other

suitable logistics solutions specific to the aggregates facility. Typically the crushing operation will be

adjacent to the quarry.

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4. Processing & logistics

Preliminary sorting - processing involves crushing the rock into smaller particles and separating

these into particular sizes. The particles are separated either to improve crushing efficiencies or to

produce a specific product.

5.Crushing

Crushing - mechanical crushers are used to reduce the size of rock pieces. Most crushers operate in

an open circuit, with material then passing to sorting (grading).

6. Grading

Grading - rubber belted conveyors are used to move rock to and from the various separating

machines (screens) and the rock crushers.

7. Stockpiles

Stockpiles - various products including sands and gravels are held in stockpiles ready for distribution.

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8. Washing

Washing - finer material is washed to remove find clays, and also minimize dust.

9. Grading

Grading - rubber belted conveyors are used to move rock to and from the various separating

machines (screens) and the rock crushers.

10. Water recycling

Water recycling - Water used for washing and dust abatement is recycled by extracting fine sands

from it. These processes enable plants to minimize dust with lower water consumption.

11. Stockpiles

Stockpiles - various products including sands and gravels are held in stockpiles ready for distribution.

12. Logistics

Logistics - final aggregate products are then transported to construction sites via appropriate

transport methods, including rail and truck.

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-PRODUCT CHARACTERISTICS

------------------------------------------------------------CEMENT-------------------------------------------------------------

Cement is made by grinding clinker to a fine powder, which produces traditional Portland

cement. When mixed with sand, gravel or crushed stone and water, cement acts as the binding

agent to make concrete.

Cement production is both resource- and energy-intensive. Our commitment to improving

eco-efficiency is based on a holistic view of the entire process, from the manufacture of the product

to its use and recycling.

Holcim offers customers a wide range of cementitious materials as well as developing

customized blends for special applications. Examples of technical and eco-efficient innovations

include the following:

-Low-CO2 cements

The main driver for reducing CO2 emissions in cement production continues to be the improvement

in clinker factor, by substituting clinker in cement with appropriate secondary materials. In recent

years, our product portfolio has undergone a successful switch to low-CO2cements and Holcim now

has one of the lowest clinker factors in the industry. We offer customers made-to-measure,

application-specific solutions using composite cements, containing mineral components such as slag

or fly ash in addition to clinker and gypsum. These comprise 75 percent of the cement types

produced by Holcim.

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-Eco-efficient products with exceptional resistance

CEMROC®, just one of a growing range of eco-efficient products offered by Holcim, is a building

material that offers very low CO2 emissions in production. It is exceptionally resistant to attack by

chemical agents and offers exemplary durability and service life. CEMROC® is produced by adding

extra components to a slag cement, which enhances the properties of the end-product concrete and

makes it resistant to aggressive environmental conditions.

----------------------------------------------------------Other Products-------------------------------------------------------

Holcim cement offerings include Holcim Excel and Holcim WallRight for its bagged products and

Holcim Premium and Holcim 4X for its bulk products

Holcim Excel

Product description

Premium quality general purpose cement, Holcim Excel is a special formulation of Portland cement

with advanced mineral additives, conforming to both ASTM C595 and PNS 063.

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Applications

Primary application of Holcim Excel cement is construction of concrete floor slabs, columns, beams,

walls and pavements. Other applications include concrete hollow block production.

Benefits

* Higher early strength = reduces construction time

* Higher yield = less cost per concrete hollow block: 5-10 more CHB

* Improved wokability = eliminates unnecessary repair and rework

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

Holcim WallRight

Product description

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

Applications

Holcim WallRight is a masonry cement for hollow block laying and filling, plastering, and finishing. It

has superior bond strength, increased water retention, and smoother texture compared to ordinary

cement applied as a finish.

Benefits

Holcim WallRight is a masonry cement specially developed to have superior bond stength and high

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workability.

* Superior bond stength makes plastering application easier and faster

* Extendable mixture ~ 1:4 (cement:sand)

* Allows easy placement and better bonding for hollow block laying

* Improves quality of surface finish compared to ordinary cement

White Cement

Total aesthetics and functional performance

White cement from Holcim - a building material which awakens emotions, and which, thanks to its

application versatility, its superb quality, and its great strength, as well as unparalleled aesthetic

appeal and total functional performance, fulfils all the requirements for a modern, high

performance and durable construction material.

White cement from Holcim makes a vast number of aesthetic and functional applications

possible, as well as fulfilling all the demands made on a Portland. In addition to this, white cement

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from Holcim is set apart from others by its excellent processing qualities and structural strength,

which provide buildings and other structures with a permanent beauty and real substance.

Whether worked into decorative exposed concrete, prefabricated concrete elements, dyed paving

stones or original garden sculptures - when combined with your imagination, the application and

design possibilities of white cement are almost unlimited.

Oilwell Cement

Our products fit for the customer's process technology

The oilwell cements offered by Holcim are subjected to rigorous internal and external screening. The

oilwell cement properties are continuously tested and documented on product data sheets that can

be requested at any time.

At Holcim, we place great emphasis on the compliance of our products with the regulations

that govern service providers in the oil and gas industry (QM - Quality Management, stable

characteristics). Nevertheless, we are convinced that the challenges and demands in product

application go far beyond mere compliance (QM - Quality Management, fit for application). The

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factthat the oilwell cement complies with the API standard's chemical-physical requirements does

not ensure that it will be accepted by oil and gas service providers.

In addition to meeting the requirements of API specification 10A,well cements must

generally also be compatible with the company' s materials. That's why Holcim has developed the

Performance Principle®. It is not only applied to the properties of the oi lwell cements involved in the

production of the final slurry but also to the user's process technology.

Aggregates

Aggregates include crushed stone, gravel and sand. Aggregates are the main component by

volume of concrete, and are used in many other applications.

Aggregates are mainly used in the manufacture of ready-mix concrete, concrete products

and asphalt, as well as for road building and railway tracks. Production of aggregates centers on

quarrying, preparing and sorting the raw material. Holcim is placing increasing emphasis on the

recycling of aggregates from concrete demolition material.

In addition to our core activities in cement and aggregates, Holcim produces and distributes

ready-mix concrete and concrete products, and offers environmental services focused on waste

management and alternative fuels.

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Ready-mix concrete

Concrete is second only to water as the most-consumed commodity on the planet, by volume, and is

of huge importance to economic development. Urbanization is accelerating cement demand around

the world, with particularly high growth predicted from emerging economies.

Holcim Concrete

Structural Concrete

Holcim Concrete produces quality ready mix concrete of all strength grades used in Metro Manila,

including 10,000 psi. We can handle small and large orders. We have knowledgeable concrete

engineers who can provide technical support and help solve your construction problems.

Industrial Housing Concrete

Industrial Housing Concrete can increase productivity in building projects that use modular

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formwork. It requires minimum vibration to attain full compaction, resists segregation even when

pumped over long distances and under difficult conditions, and is easy to place and finish. We can

save you money by reducing your labor cost and increasing forms turnover.

Road and Pavement Concrete

Our Road and Pavement Concrete are designed to meet AASHTO and DPWH requirements for

strength, wear resistance and performance. We can produce higher early strength grades that will

meet the target strengths earlier specified by the DPWH Blue Book.

High Strength Concrete

High Strength Concrete is used for tall buildings, structural members of bridges and flyovers, and

prestressed and post-tensioned elements. By reducing the size of structural elements, HSC lowers

steel cost, increases the usable floor area, and reduces the weight of the building and its

foundation.

Special Applications

We can design special concretes for your construction project. With our experienced concrete

engineers and access to the Holcim global know-how in cement, aggregates and concrete, we can

develop innovative solutions for you - whether you need lightweight concrete, low heat mass

concrete, flowable fill, high early strength concrete, self-compacting concrete or any other special

concrete application.

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As we can see on the Holcim Ltd. supply chain, it starts with the Fuel Suppliers, Quarries

which includes Limestone quarries and Shale quarries and other Raw Material Supplier which

includes Sand, Clay and Iron Ore where the company gets its supplies to start the production of the

cement.

When the raw materials are completely collected, it then undergoes the cement making

process which involves extraction and crushing, Pre-Homogenization, Clinker Production and then

Grinding and storage.

After grinding, the bulk cement is placed on the Cement Bulk storage, from that storage

some of bulk cement is sent to construction companies, some are brought to concrete companies

and some are put on the packaging area to be bagged and then dispatch to some wholesalers and

retailers and then these establishments provide for some builders and contractors.

HOLCIM VALUE CHAIN

Innovative, application-driven, high-quality products make us the provider of first choice.

Among the reasons for Holcim's lasting success is a product strategy with a focus on the production

and distribution of our core products - cement and aggregates - both which are key basic materials

for construction.

The main focus of investment is the processing of raw materials. The production of cement

and aggregates, for example, requires a great deal of process know-how, and is a highly capital-

intensive process that ties up assets over the long term. Because of the continuing demand for new

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production facilities and rising building costs, capital expenditures for cement production have risen

substantially.

However, our investment policy and product range are adapted to suit the maturity of each

market and local customer needs. So while cement and aggregates are the basis of our business,

other products bring us closer to the end-consumer. As markets mature and customer needs

broaden, we offer ready-mix concrete, concrete goods, asphalt and associated services:

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

In maturing economies, vertical integration becomes more significant, and we aim to

establish ready-mix concrete businesses in major urban centers;

In developed markets, the range of products is even more diversified and includes

aggregates, asphalt and concrete products. Because of the high degree of regulation in

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industrialized nations, it is strategically important to have high-grade, secure raw material

reserves.

Following that logic, Holcim built up a strong cement portfolio in emerging markets while the

aggregate portfolio is mainly focused on mature markets and on urban areas in emerging markets.

QUALITY OF PRODUCT

GLOBAL STANDARDS

Our business has local roots and is geared to the conditions and needs of each specific

market where we operate, yet we have Group-wide standards and systematic benchmarking that

allow us to enhance our efficiency. Therefore, our success lies in striking a balance between local

responsibility and global leadership.

The extractions of large quantities of raw materials, the operation of capital -intensive

cement plants and the distribution of building materials to local or regional markets require strong

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local presence and an awareness of our responsibilities. However, to fully exploit our potential,

Holcim has standardized all its major corporate processes. This allows local management to

concentrate on market development, cost efficiencies, training for staff and senior managers, and

nurturing community relations at a local level.

QUALITY CONTROL

Control Center

In the Control Center area, state of the art technology is used to monitor and control the

entire production process, under the watchful eye of a team of specialists that analyse the quality of

raw materials, inter-mediate, and final products in order to guarantee the excellence of the cement

that is delivered to customers.

Quality control

In order to examine the quality of the products, many control tests are regularly performed in all the

areas of the production process, from the quarry to cement dispatch.

Modern laboratories are put to good use in controlling the quality and assuring the performance of

final products.

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Holcim uses an up-to-date Production Control System which includes incoming materials

control, production process control and end product control. The company has ISO 2001:9000

certification.

Incoming control

Incoming control monitors the humidity, wash ability and granulometry of aggregates. Holcim Beton

Plovdiv is supplied with cement and aggregates by companies as Holcim Karierni materiali Plovdiv

and Holcim Bulgaria which guarantee the quality of the raw material by certificate.

Production process control

The production process control is performed at the ready-mix plant and focuses on the concrete

compacting and accurate recipe performance. The method and periodicity of sampling comply with

the requirements of standard EN 206-1.

Final control

Holcim experts subject final products to physical and mechanical tests in a modern lab equipped

with state-of-the-art technology. The quality control in Holcim is finalized with a document

submitted to the client - a declaration of conformity with a concrete quality certificate. All test

results are stored in special journals, as well as in electronic files and clients can trace back and

make sure of the quality of concrete offered. Thanks to its GPS system Holcim guarantees the

quality of ready-mix concrete (the sensor equipped trucks send information about the condition of

the concrete).

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ISO STANDARD

ISO has developed over 18 500 International Standards on a variety of subjects and some

1100 new ISO standards are published every year. The full range of technical fields can be seen from

the listing International Standards. Users can browse that listing to find bibliographic information on

each standard and, in many cases, a brief abstract. The online ISO Standards listing integrates both

the ISO Catalogue of published standards and the ISO Technical programme of standards under

development.

Environment. Health protection. Safety

Environmental protection

Wastes

Air quality

Water quality

Including toxicity, biodegradability, protection against pollution, related installations and

equipment

Soil quality. Pedology

Soil properties related to geotechnics

Occupational safety. Industrial hygiene

Protective clothing and equipment,

Workplace lighting,

Safety of machinery

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Domestic safety

Child safety

Safety of toys,

Noise with respect to human beings

Including audiometry

Acoustics and acoustic measurements

Hearing protectors,

Vibration and shock with respect to human beings

Vibrations, shock and vibration measurements,

Ergonomics

Accident and disaster control

Including emergency evacuations and emergency control systems

Seismic and vibration protection of buildings,

Protection against fire

Explosion protection

Electrical apparatus for explosive atmospheres,

Explosives and pyrotechnics,

Protection against excessive pressure

Including safety valves, bursting disc devices, etc.

Protection against electric shock. Live working

Including tools for working with voltages

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Radiation protection

Including protection against radio-frequency radiation

Radiation measurements

Protection against dangerous goods

Including performance requirements for dangerous goods, their handling, storage,

transportation, marking, labelling, etc.

Explosives, see Nuclear fissile materials,

Protection against crime

Including security services, security procedures, burglar alarm devices, burglary resisting

materials and equipment, bullet resisting materials and equipment, anti-theft devices for

vehicles, safes, strong rooms,

Alarm and warning systems

Burglar alarm and warning systems,

Warning devices for road vehicles,

Protective equipment

Occupational safety,

Health care technology

including quality and environmental management in health care technology

IT application in health care technology,

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2000 version of ISO

ISO 9001:2000 combines the three standards 9001, 9002, and 9003 into one, called 9001.

Design and development procedures are required only if a company does in fact engage in the

creation of new products. The 2000 version sought to make a radical change in thinking by actually

placing the concept of process management front and center ("Process management" was the

monitoring and optimizing of a company's tasks and activities, instead of just inspecting the final

product). The 2000 version also demands involvement by upper executives, in order to integrate

quality into the business system and avoid delegation of quality functions to junior administrators.

Another goal is to improve effectiveness via process performance metrics — numerical

measurement of the effectiveness of tasks and activities. Expectations of continual process

improvement and tracking customer satisfaction were made explicit.

The ISO 9000 standard is continually being revised by standing technical committees and

advisory groups, who receive feedback from those professionals who are implementing the

standard.

ISO 9001:2008 only introduces clarifications to the existing requirements of ISO 9001:2000

and some changes intended to improve consistency with ISO 14001:2004. There are no new

requirements. Explanation of changes in ISO 9001:2008. A quality management system being

upgraded just needs to be checked to see if it is following the clarifications introduced in the

amended version.

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Certification

ISO does not itself certify organizations. Many countries have formed accreditation bodies to

authorize certification bodies, which audit organizations applying for ISO 9001 compliance

certification. Although commonly referred to as ISO 9000:2000 certification, the actual standard to

which an organization's quality management can be certified is ISO 9001:2008. Both the

accreditation bodies and the certification bodies charge fees for their services. The various

accreditation bodies have mutual agreements with each other to ensure that certificates issued by

one of the Accredited Certification Bodies (CB) are accepted worldwide.

The applying organization is assessed based on an extensive sample of its sites, functions,

products, services and processes; a list of problems ("action requests" or "non-compliance") is made

known to the management. If there are no major problems on this list, or after it receives a

satisfactory improvement plan from the management showing how any problems will be resolved,

the certification body will issue an ISO 9001 certificate. The certificate is limited by a certain scope

(e.g. production of golf balls) and names the locations covered.

An ISO certificate is not a once-and-for-all award, but must be renewed at regular intervals

recommended by the certification body, usually around three years. There are no grades of

competence within ISO 9001: either a company is certified (meaning that it is committed to the

method and model of quality management described in the standard), or it is not. In this respect, it

contrasts with measurement-based quality systems such as the Capability Maturity Model.

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QUALITY GURU

DR. KAORU ISHIKAWA (1915–1989)

A professor of engineering at the University of Tokyo and a student of Dr. W. Edwards

Deming, Ishikawa was active in the quality movement in Japan, and was a member of the Union of

Japanese Scientists and Engineers. He was awarded the Deming Prize, the Nihon Keizai Press Prize,

and the Industrial Standardization Prize for his writings on quality control, and the Grant Award

from the American Society for Quality Control for his educational program on quality control.

Ishikawa's book, Guide to Quality Control (1982), is considered a classic because of its in-

depth explanations of quality tools and related statistics. The tool for which he is best known is the

cause and effect diagram. Ishikawa is considered the Father of the Quality Circle Movement. Letters

of praise from representatives of companies for which he was a consultant were published in his

book What Is Total Quality Control? (1985). Those companies include IBM, Ford, Bridgestone,

Komatsu Manufacturing, and Cummins Engine Co.

Ishikawa believed that quality improvement initiatives must be organization-wide in order to

be successful and sustainable over the long term. He promoted the use of Quality Circles to: (1)

Support improvement; (2) Respect human relations in the workplace; (3) Increas e job satisfaction;

and (4) More fully recognize employee capabilities and utilize their ideas. Quality Circles are

effective when management understands statistical techniques and act on recommendations from

members of the Quality Circles.

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DR. JOSEPH JURAN (B. 1904)

Dr. Juran was born on December 24, 1904 in Braila, Romania. He moved to the United States

in 1912 at the age of 8. Juran's teaching and consulting career spanned more than seventy years,

known as one of the foremost experts on quality in the world.

A quality professional from the beginning of his career, Juran joined the inspection branch of

the Hawthorne Co. of Western Electric (a Bell manufacturing company) in 1924, after completing his

B.S. in Electrical Engineering. In 1934, he became a quality manager. He worked with the U. S.

government during World War II and afterward became a quality consultant. In 1952, Dr. Juran was

invited to Japan. Dr. Edward Deming helped arrange the meeting that led to this invitation and his

many years of work with Japanese companies.

Juran founded the Juran Center for Quality Improvement at the University of Minnesota and

the Juran Institute. His third book, Juran's Quality Control Handbook, published in 1951, was

translated into Japanese. Other books include Juran on Planning for Quality (1988), Juran on

Leadership for Quality (1989), Juran on Quality by Design (1992), Quality Planning and Analysis

(1993), and A History of Managing for Quality (1995). Architect of Quality (2004) is his

autobiography.

SELECTED JURAN QUALITY THEORIES

Juran's concepts can be used to establish a traditional quality system, as well as to support

Strategic Quality Management. Among other things, Juran's philosophy includes the Quality Trilogy

and the Quality Planning Roadmap.

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JURAN'S QUALITY TRILOGY.

The Quality Trilogy emphasizes the roles of quality planning, quality control, and quality

improvement. Quality planning's purpose is to provide operators with the ability to produce goods

and services that can meet customers' needs. In the quality planning stage, an organization must

determine who the customers are and what they need, develop the product or service features that

meet customers' needs, develop processes which are able to deliver those products and services,

and transfer the plans to the operating forces. If quality planning is deficient, then chronic waste

occurs.

Quality control is used to prevent things from getting worse. Quality control is the inspection

part of the Quality Trilogy where operators compare actual performance with plans and resolve the

differences. Chronic waste should be considered an opportunity for quality improvement, the third

element of the Trilogy. Quality improvement encompasses improvement of fitness -for-use and error

reduction, seeks a new level of performance that is superior to any previous level, and is attained by

applying breakthrough thinking.

While up-front quality planning is what organizations should be doing, it is normal for

organizations to focus their first quality efforts on quality control. In this aspect of the Quality

Trilogy, activities include inspection to determine percent defective (or first pass yield) and

deviations from quality standards. Activities can then focus on another part of the trilogy, quality

improvement, and make it an integral part of daily work for individuals and teams.

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Quality planning must be integrated into every aspect of the organization's work, such as

strategic plans; product, service and process designs; operations; and delivery to the customer. The

Quality Trilogy is depicted below in Figure 2.

JURAN'S QUALITY PLANNING ROAD MAP.

Juran's Quality Planning Road Map can be used by individuals and teams throughout the

world as a checklist for understanding customer requirements, establishing measurements bas ed on

customer needs, optimizing product design, and developing a process that is capable of meeting

customer requirements. The Quality Planning Roadmap is used for Product and Process

Development and is shown in Figure 3.

Juran's Quality Trilogy and Quality Roadmap are not enough. An infrastructure for Quality

must be developed, and teams must work on improvement projects. The infrastructure should

include a quality steering team with top management leading the effort, quality should become an

integral part of the strategic plan, and all people should be involved. As people identify areas with

improvement potential, they should team together to improve processes and produce quality

products and services.

Under the "Big Q" concept, all people and departments are responsible for quality. In the old

era under the concept of "little q," the quality department was responsible for quality. Big "Q"

allows workers to regain pride in workmanship by assuming responsibility for quality.

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ENVIRONMENT PRESERVATION

Turning waste into energy: Geocycle

Alternative fuels are an important source of energy, contributing toward lowering global

CO2emissions. Holcim Group companies have taken a major step forward in the use of alternative

fuels and raw materials through Geocycle, our waste management brand. This covers most of our

operations in Asia, Europe and North America , and builds on Holcim's 18 years' experience in co-

processing. Geocycle customers benefit from standard waste disposal services or individual

solutions to ensure eco-efficient recycling of unwanted by-products. Holcim Group companies use

the waste materials in energy generation and cement production, so conserving virgin natural

resources, lowering fossil fuel consumption and reducing CO2 emissions per tonne of cement.

Co-Processing

The nature of the cement production process makes possible to incorporate environmental -

friendly solutions for the disposal of industrial residues which are both safe and commercially viable,

known as co-processing.

Co-processing is the final disposal of fuels and residues such as used oils, plastics, soil, fibers,

tires, sledges, etc. which are disposed of in a safe and environmentally acceptable manner. These

are transformed into heat and new residues simultaneously within the ongoing clinker production

process, in accordance with national environmental regulations. Co-processing is suitable and

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successful due to the high combustion temperatures (between 900ºC and 2000ºC), the extended

residence time and the high turbulence that the materials experience along the production process.

Quarry Rehabilitation

These are the major elements of the Final Mines Rehabilitation and Decommissioning Plan

( FMRDP, also commonly referred to as a Mine Closure or Quarry rehab Plan ), for the four

operating cement plants of Holcim Philippines Inc. located in Bulacan and La Union in Luzon and in

Davao and Lugait in Mindanao. The details are contained in six (6) separate volumes of quarry

closure plans. The FMRDPs are based on the guidelines contained in the revised Implementing

Rules and Regulations of DENR Administrative Order No. DAO 96 – 40. The plans are also in

compliance with the principles of quarry rehabilitation provided by the international headquarters

of Holcim in Switzerland. The total combined rehabilitation cost is estimated at P 72.14 M

which is to be funded within a period of 12 years. The details of this estimate are presented in the

closure plans of the four (4) Holcim Plants which have been submitted to their respective MGB

regional offices for their review.

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NEEDS AND DEMANDS OF PEOPLE

Need For Cement

In Britain particularly, good quality building stone became ever more expensive during a

period of rapid growth, and it became a common practice to construct prestige buildings from the

new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic lines were favored

for this, but the need for a fast set time encouraged the development of new cements. Most famous

was Parker's "Roman cement". This was developed by James Parker in the 1780s, and finally

patented in 1796. It was, in fact, nothing like any material used by the Romans, but was ”Natural

cement" made by burning septaria – nodules that are found in certain clay deposits, and that

contain both clay minerals and calcium carbonate. The burnt nodules were ground to a fine powder.

This product, made into a mortar with sand, set in 5–15 minutes. The success of "Roman Cement"

led other manufacturers to develop rival products by burning artificial mixtures of clay and chalk.

John Smeaton made an important contribution to the development of cements when he was

planning the construction of the third Eddystone Lighthouse (1755–9) in the English Channel. He

needed a hydraulic mortar that would set and develop some strength in the twelve hour period

between successive high tides. He performed an exhaustive market research on the available

hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was

directly related to the clay content of the limestone from which it was made. Smeaton was a civil

engineer by profession, and took the idea no further. Apparently unaware of Smeaton's work, the

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same principle was identified byLouis Vicat in the first decade of the nineteenth century. Vicat went

on to devise a method of combining chalk and clay into an intimate mixture, and, burning this,

produced an “artificial cement" in 1817. James Frost working in Britain, produced what he called

"British cement" in a similar manner around the same time, but did not obtain a patent until 1822.

In 1824, Joseph Aspdin patented a similar material, which he called Portland cement, because the

render made from it was in color similar to the prestigious Portland stone.

All the above products could not compete with lime/pozzolan concretes because of fast-

setting (giving insufficient time for placement) and low early strengths (requiring a delay of many

weeks before formwork could be removed). Hydraulic limes, "natural" cements, and "artificial"

cements all rely upon their belite content for strength development. Belite develops strength slowly.

Because they were burned at temperatures below 1250 °C, they contained no alite, which is

responsible for early strength in modern cements. The first cement to consistently contain alite was

made by Joseph Aspdin's son William in the early 1840s. This was what we call today "modern"

Portland cement. Because of the air of mystery with which William Aspdin surrounded his product,

others (e.g., Vicat and I.C. Johnson) have claimed precedence in this invention, but recent analysis of

both his concrete and raw cement have shown that William Aspdin's product made

atNorthfleet, Kent was a true alite-based cement. However, Aspdin's methods were "rule-of-

thumb": Vicat is responsible for establishing the chemical basis of these cements, and Johnson

established the importance of sintering the mix in the kiln.

William Aspdin's innovation was counterintuitive for manufacturers of "artificial cements",

because they required more lime in the mix (a problem for his father), a much higher kiln

temperature (and therefore more fuel), and the resulting clinker was very hard and rapidly wore

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down the millstones, which were the only available grinding technology of the time. Manufacturing

costs were therefore considerably higher, but the product set reasonably slowly and developed

strength quickly, thus opening up a market for use in concrete. The use of concrete in construction

grew rapidly from 1850 onwards, and was soon the dominant use for cements. Thus Portland

cement began its predominant role.

In the US the first large scale use of cement was Rosendale cement a natural cement mined

from a massive deposit of a large dolostone rock deposit discovered in the early 19th century

near Rosendale, New York. Rosendale cement was extremely popular for the foundation of buildings

(e.g., Statue of Liberty, Capitol Building, Brooklyn Bridge) and lining water pipes. But its long curing

time of at least a month made it unpopular after World War One in the construction of highways

and bridges and many states and construction firms turned to the use of Portland cement. Because

of the switch to Portland cement, by the end of the 1920s of the 15 Rosendale cement companies,

only one had survived. But in the early 1930s it was soon discovered that Portland cement while it

had a faster setting time was not as durable, especially for highways, to the point that some states

stop building highways and roads with cement. An engineer, Bertrain H. Wait, whose company had

worked on the construction of the New York Cities Catskill Aqueduct, and was impressed with the

durability of Rosendale cement, came up with a blend of both Rosendale and synthetic cements

which has the good attributes of both: it was highly durable and had a much faster setting time. Mr.

Wait convinced the New York Commissioner of Highways to construct an experimental section

highway near New Paltz, New York, of one sack of Rosendale to six sacks of synthetic cement, and it

was proved a success and for decades hence the Rosendale-synthetic cement blend became

common use in highway and bridge construction.

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Need for Aggregates

The American Society for Testing and Materials publishes an exhaustive listing of

specifications for various construction aggregate products, which, by their individual design, are

suitable for specific construction purposes. These products include specific types of coarse and fine

aggregate designed for such uses as additives to asphalt and concrete mixes, as well as other

construction uses. State transportation departments further refine aggregate material specifications

in order to tailor aggregate use to the needs and available supply in their particular locations.

Sources for these basic materials can be grouped into three main areas: Mining of mineral

aggregate deposits, including sand, gravel, and stone; use of waste slag from the manufacture of

iron and steel; and recycling of concrete, which is itself chiefly manufactured from mineral

aggregates. In addition, there are some (minor) materials that are used as specialty lightweight

aggregates: clay, pumice, perlite, and vermiculite.

Need for Wallright

WallRight is ideal for plastering and finishing. It has superior adhesion, lighter color, better

consistency, increased water retention, and smoother texture compared to ordinary cement applied

as a finish. Masonry cement is specially developed to have better resistance against debonding and

mortar cracks. WallRight yields more plastering and finishing mortar, covering more area with each

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application and helping save on costs. Its smooth texture and adhesion enables faster plastering

time and better quality finish.

Need for White Cement

White Portland cement is used in combination with white aggregates to produce

white concrete for prestige construction projects and decorative work. White concrete usually takes

the form of pre-cast cladding panels, since it is not economical to use white cement for structural

purposes. White Portland cement is also used in combination with inorganic pigments to produce

brightly colored concretes and mortars. Ordinary cement, when used with pigments, produces

colors that may be attractive, but are somewhat dull. With white cement, bright reds, yellows and

greens can be readily produced. Blue concrete can also be made, at some expense. The pigments

may be added at the concrete mixer. Alternatively, to guarantee repeatable color, some

manufacturers supply ready-blended colored cements, using white cement as a base.

The whiteness of WOPC is measured as the powdered material having a reflectance value ("L value")

in excess of 85%. A particular success in the use of WOPC and added pigments is monocouche

renders.

Need for Oilwell Cement

Oil Well Cement as the name suggests, is used for the grouting of the oil wells, also known as

the cementing of the oil wells. This is done for both, the off-shore and on-shore oil wells.

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As the number of oil wells is increasing steadily, the sales of Oil Well Cement have also increas ed.

This has boosted the cement industry to a large extent.

Oil Well Cement is manufactured from the clinker of Portland cement and also from cements that

have been hydraulically blended. Oil Well Cement can resist high pressure as well as very high

temperatures. Oil Well Cement sets very slowly because it has organic 'retarders' which prevent it

from setting too fast. It is due to all these characteristics that it is used in the building of the oil wells

where the pressure is around 20,000 PSI and the temperature is around 500 degrees

Need for Concrete

The Assyrians and Babylonians used clay as the bonding substance or cement. The Egyptians

used lime and gypsum cement. In 1756, British engineer, John Smeaton made the first modern

concrete (hydraulic cement) by adding pebbles as a coarse aggregate and mixing powered brick into

the cement. In 1824, English inventor, Joseph Aspdin invented Portland Cement, which has

remained the dominant cement used in concrete production. Joseph Aspdin created the first true

artificial cement by burning ground limestone and clay together. The burning process changed the

chemical properties of the materials and Joseph Aspdin created a stronger cement than what using

plain crushed limestone would produce.

The other major part of concrete besides the cement is the aggregate. Aggregates include

sand, crushed stone, gravel, slag, ashes, burned shale, and burned clay. Fine aggregate (fine refers

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to the size of aggregate) is used in making concrete slabs and smooth surfaces. Coarse aggregate is

used for massive structures or sections of cement.

Concrete that includes imbedded metal (usually steel) is called reinforced concrete or

ferroconcrete. Reinforced concrete was invented (1849) by Joseph Monier, who received a patent in

1867. Joseph Monier was a Parisian gardener who made garden pots and tubs of concrete

reinforced with an iron mesh. Reinforced concrete combines the tensile or bendable strength of

metal and the compressional strength of concrete to withstand heavy loads. Joseph Monier

exhibited his invention at the Paris Exposition of 1867. Besides his pots and tubs, Joseph Monier

promoted reinforced concrete for use in railway ties, pipes, floors, arches, and bridges .

Need for Excel

A premium quality cement, Excel is a special formulation of Portland cement with advanced

mineral additives, conforming to both ASTM C595 and PNS 063. It is designed to produce a more

workable concrete, higher early strength, and better surface finish. Primary application of Excel

cement is construction of concrete floor slabs, columns, beams, walls, and pavements. Other

applications include concrete hollow block production. Excel is the leading cement brand in

Mindanao, having sold more than 30 million bags since the product was launched in 2002. Excel is

also exported to many overseas markets.

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Benefits

■ High early strength

Using Excel reduces the water-cement ratio resulting in higher early strength for the same

concrete slump when compared to ordinary Portland cement (OPC).

■ Improved workability

Improved workability can be achieved by using Excel at the same water-cement ratio as with OPC.

Concrete pouring and placing is made easier, faster, and results in a better concrete surface.

■ Higher yield

The use of Excel increases yield in hollow block production. Tests show Excel yields 5-10 more

blocks than any other cement product.

■ Smoother, whiter finish

Excel’s compact microstructure and higher fineness result in a more cohesive mix and a smoother

final finish. Excel’s advanced mineral additives also help produce a lighter finish.

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The sales forecast graph shows the actual sales from 2008-2010 and sales forecast for the

years 2011- 2016. The low case means the lowest possible sale that the company can make while

the base case is the normal performance that the company does.

FINANCIAL STATEMENTS

Income Statement (Prices in CHF)

Year on year Holcim Ltd's net income deteriorated 19.65% from 1.47bn to 1.18bn despite

relatively flat revenues. A contributing factor has been the increase in the cost of goods sold,

selling, general and administrative expenses and interest paid (all as a percent of sales).

Revenue Net Income

Cash Flow (Prices in CHF)

In 2010, cash reserves at Holcim Ltd fell by 1.19bn. However, the company earned 3.66bn from its

operations for a Cash Flow Margin of 16.90%. In addition the company used 1.36bn on investing

activities and also paid 3.24bn in financing cash flows.

Cash Flow

Cash Flow Per Share 11.02

Price/Cash Flow Per Share 5.33

Cash

Book Value Per Share 55.23

Tangible Book Value Per

Share 27.37

Return on Assets 3.55%

Return on Equity 6.72%

Return on Investment 4.70%

Gross Margin 42.56%

Net Profit Margin 7.78%

Operating Margin 11.62%

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Balance Sheet (Prices in CHF)

Holcim Ltd has a Debt to Total Capital ratio of 42.57%.

Total Assets

Current Ratio 1.19

Quick Ratio 0.9031

Total Debt

Total Debt/Total Equity 0.8671

Total Debt/Total Capital 0.4257

BALANCE SHEETS

In Millions of CHF

(except for per share items)

Dec 31 2010 Dec 31 2009 Dec 31 2008

Cash and Short Term Inv 3,416 4,507 3,610

Total Receivables, Net 2,671 3,401 3,116

Total Inventory 2,072 2,162 2,482

Prepaid Expenses 326 493 385

Other Curr. Assets, Total 27 234 401

Total Current Assets 8,512 10,797 9,994

Prop./Plant/Equip. - Net 23,343 25,493 23,262

Goodwill, Net 8,144 8,926 8,378

Intangibles, Net 917 1,057 928

Long Term Investments 1,490 2,206 2,056

Note Rcvble - Long Term 1,055 -- --

Other Long Term Assets 413 315 307

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In Millions of CHF (except for per share items)

Dec 31 2010 Dec 31 2009 Dec 31 2008

Total Assets 44,259 49,206 45,193

Accounts Payable 2,151 2,223 2,566

Notes Payable/ST Debt 1,385 2,933 3,924

Curr. Port. LT Dbt/Cap Ls. 1,076 1,520 1,939

Other Curr. Lblts, Total 2,602 2,604 2,336

Total Current Liabilities 7,214 9,280 10,765

Total Long Term Debt 12,151 13,854 12,789

Total Debt 14,612 18,307 18,652

Deferred Income Tax 2,203 2,389 2,157

Minority Interest 3,020 3,011 2,616

Other Liabilities, Total 1,570 1,639 1,508

Total Liabilities 26,158 30,173 29,835

Common Stock 654 654 527

Additional Paid-In Capital 9,371 9,368 6,870

Ret. Earn.(Accum. Deficit) 8,552 9,466 8,362

Treasury Stock - Common (476) (455) (401)

Total Equity 18,101 19,033 15,358

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In Millions of CHF (except for per share items)

Dec 31 2010 Dec 31 2009 Dec 31 2008

Total Liabilities & Shareholders' Equity 44,259 49,206 45,193

Ttl Comm. Shares Outs. 320 320 283

Trsy. Shrs-Comm. Primary Iss. 7 7 6

CASH FLOW

In Millions of CHF (except for per share items)

Dec 31 2010 Dec 31 2009 Dec 31 2008

Reclassified 12/31/10

Net Income 2,236 2,581 2,889

Depreciation/Depletion 1,894 1,849 1,973

Non-Cash Items 872 664 1,182

Cash Taxes Pd, Supplemental 829 639 877

Cash Interest Pd, Suppl 471 726 861

Changes in Working Capital (1,343) (1,206) (2,341)

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Total Cash from Operations 3,659 3,888 3,703

Capital Expenditures (1,821) (2,507) (4,518)

OtherInvestCashFlowItms,Tot 459 (1,923) (957)

Total Cash from Investing (1,362) (4,430) (5,475)

Financing Cash Flow Items (334) (350) (235)

Total Cash Dividends Paid (480) 0 (868)

Iss (Retirmnt) of Stock,Net (29) 1,968 (349)

Iss (Retirmnt) of Debt, Net (2,397) (422) 4,119

Total Cash From Financing (3,240) 1,196 2,667

Foreign Exchange Effects (249) (4) (629)

Net Change in Cash (1,192) 650 266

NetCash-BeginBal/RsvdforFutUse 4,261 3,611 3,345

NetCash-EndBal/RsrvforFutUse 3,069 4,261 3,611

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INCOME STATEMENTS

In Millions of CHF

(except for per share items)

Dec 31 2010 Dec 31 2009 Dec 31 2008

Total Revenue 21,653 21,132 25,157

Cost of Revenue, Total 12,379 12,072 14,116

Sell/General/Admin. Expenses, Total 6,289 5,913 7,681

Depreciation/Amortization 406 375 --

Total Operating Expense 19,074 18,360 21,797

Operating Income 2,579 2,772 3,360

Other, Net 122 196 21

Net Income Before Taxes 2,236 2,581 2,889

Provision for Income Taxes 615 623 663

Net Income After Taxes 1,621 1,958 2,226

Minority Interest (439) (487) (444)

Net Income Before Extra. Items 1,182 1,471 1,782

Net Income 1,182 1,471 1,782

Depreciation, Supplemental 1,894 1,849 1,973

Cash Interest Pd, Suppl 471 726 861

Cash Taxes Pd, Supplemental 829 639 877

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In Millions of CHF (except for per share items)

Dec 31 2010 Dec 31 2009 Dec 31 2008

Income Available to Common Excl. Extra. Items 1,182 1,471 1,782

Income Available to Common Incl. Extra. Items 1,182 1,471 1,782

Basic/Primary Weighted Average Shares 320 298 284

Basic/Primary EPS Excl. Extra. Items 3.694 4.934 6.267

Basic/Primary EPS Incl. Extra. Items 3.694 4.934 6.267

Diluted Weighted Average Shares 320 298 284

Diluted EPS Excl. Extra. Items 3.691 4.931 6.265

Diluted EPS Incl. Extra. Items 3.691 4.931 6.265

DPS - Common Stock Primary Issue 1.500 1.500 2.250

Gross Dividend - Common Stock 480 480 594

Pro Forma Net Income -- -- --

Interest Expense, Suppl 789 780 877

Depreciation, Supplemental 1,711 1,603 1,631

Normalized Income Before Taxes 2,236 2,581 2,889

Inc Tax Ex Impact of Sp Items 615 623 663

Normalized Income After Tax 1,621 1,958 2,226

Normalized Inc Avail to Common 1,182 1,471 1,782

Basic Normalized EPS 3.694 4.934 6.267

Diluted Normalized EPS 3.691 4.931 6.265

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LOCATION DECISION

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

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

minimize transportation expense.

2. Nearness to the potential market

3. Near to operating requirements (Electricity, Garbage Disposal and Drainage Facilities)

4. Supply of labor

5. Transportation and communication facilities

6. Integration with other groups and companies

7. Suitability of land and climate

8. Availability of housing and other amenities and services

9. Local building and planning regulations

10. Safety Requirements

Selection of the site for the factory

Known as the location analysis where firstly some geographical is selected and from that

area a particular site is selected for establishment of the plant.

Methods in evaluating plant locations

1. Quantitative Factors

2. Comparison of qualitative Factors

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

RURAL URBAN SUB-URBAN

More Water Better transportation Planned industrial

Cheaper land Large labor supply Larger area

Lower taxes Big local market

Few ordinances Easy finance

Municipal services

Labor stability Better civil attitude

CAPACITY PLANNING

Ste. Genevieve Plant of Holcim

The new cement manufacturing facility of Holcim (US) at Ste. Genevieve with a production

capacity of four million tonnes per year was inaugurated on June 4, 2010. The plant that went on

stream mid-2009 will be one of the most environmentally-efficient cement plants in the Holcim

Group. It is 40 percent more energy-efficient than the Holcim (US) plants that were closed in 2009

and emits 10 to 25 percent less CO 2.

The new Ste. Genevieve cement plant had been under construction since 2005, went on

stream mid-2009, and was inaugurated on June 4, 2010. It is a world-class facility with a single-kiln

line and has an annual production capacity of four million tonnes of cement, which makes it one of

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the world's largest cement manufacturing facilities. "This state-of-the-art plant and our robust

network of terminals and distribution assets will ensure a reliable supply of the highest quality

cement to our valued customers today and for many years to come", said Bernard Terver, President

and CEO of Holcim (US), proudly.

Over the past decade, Holcim (US) has expanded its production capacity in the west, south,

and southeast of the United States, but it still needed a more modern and reliable plant to serve the

central part of the country. The new plant in Ste. Genevieve, Missouri, boosts Holcim's market

presence throughout the river system of the Midwest, right down to the Gulf of Mexico.

With its own port and loading facilities on the Mississippi, the factory is a model facility in every

respect and is highly energy-efficient. Compared with the Holcim (US) plants shut down (Dundee

and Clarksville) the improvement per tonne of cement equals around 40 percent. CO 2-emissions

per tonne of cement are 10 to 25 percent lower than the norm, mainly due to energy-efficient

transportation, with barges handling approximately 75 percent.

Transportation on waterway, rail and road

Ste. Genevieve, Missouri was chosen as the best site for this new plant for several reasons: a

plentiful supply of good-quality limestone, a high-quality workforce, and good access to target

markets via key transportation networks including waterway, rail and road. The spine of the

waterway network is the Mississippi River, over 3,700 kilometers long. This system serves ten of the

twenty largest cities in the United States. The Ste. Genevieve plant has its own slack-water harbor

on the Mississippi, allowing efficient and low-cost transportation of six million tonnes of materials

annually.

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Comprehensive safety program

Achieving excellence in safety has been a prime concern during construction, commissioning, start-

up, and operation of the plant. Holcim (US) developed new procedures and policies for this large

greenfield project and its many unique challenges, including commissioning and start-up. Safety

remained a chief concern during start-up, as activities shifted from construction to operation and

the associated change of hazards required a change of mindset. During the four years from start of

construction to initial operation, over 7.5 million man-hours were worked on-site by 2,500 workers,

and the plant maintained a recordable incident rate of about a third of the average for the US

construction industry.

Committed to Sustainable Development

In maintaining Holcim's commitment to sustainable development, the plant will be one of the most

environmentally-efficient cement production facilities ever operated. Holcim has made major

efforts to both minimize emissions and protect air quality along with the conservation and

preservation of natural resources. Holcim invested in cutting-edge equipment with high plant

efficiencies, optimized raw materials, and energy efficient transportation opportunities.

While about 1,700 acres will be permitted for quarry and plant operations, ongoing reclamation will

ensure that only a portion is opened at any given time. Holcim has restored more than 60 acres of

wetlands on the property. Other than the on-site quarry materials, up to 75% of the plant's

materials and products will be received and shipped by river, maximizing both energy and

environmental efficiency. Jeff Ouhl, Ste. Genevieve Plant Manager, said, "As we continue to strive

toward safety and sustainability, this plant is a true testament to the many people who worked so

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hard to get us to this point. Holcim customers can now look forward to years of consistently

performing, high quality product from the Ste. Genevieve Plant."

SITE DECISIONS

It takes a great deal of production know-how to make cement and related products. Read

more about what is involved and how we manage the impacts.

Quarrying and raw materials preparation

Activities: drilling and blasting in quarries (or demolition of existing constructions to obtain and

recycle materials); crushing; transport to cement plant.

Impacts:

use of natural resources; effects on landscape and ecology; traffic effects on nearby communities.

Management and mitigation:

use secondary materials to substitute for clinker and reduce natural resource consumption;

rehabilitate quarries; systematically minimize noise, transport and visual impact.

Clinker production

Activities:

raw materials mixed and homogenized; milling and drying; filtering; firing in kiln to produce clinker

minerals; cooling of molten clinker.

Impacts:

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intensive energy and resource use; emissions to atmosphere; health and safety.

Management and mitigation:

replace fossil fuels and raw materials with waste and industrial by-products (alternative fuels);

continuously monitor and reduce CO2 and other emissions; foster a health and safety culture

including a zero target for incidents.

Cement grinding and distribution

Activities:

grinding of cooled clinker with other materials in cement mill to produce the final cement types;

cement transported from plant in bags or as bulk powder.

Impacts:

intensive energy and resource use; emissions to atmosphere; health and safety. intensive energy

and resource use; emissions to atmosphere; health and safety

Management and mitigation:

as well as internal systems and controls mentioned above, Holcim places huge emphasis on being a

good neighbor and a good employer. This entails not only limiting environmental impacts but also

working with our stakeholders throughout our value chain - including our employees and people

living near our plants and factories.

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JOB AND WORK MANAGEMENT

Careers

With operations spanning the globe, Holcim draws together a team of about 80,000 people

focused on the production and supply of innovative building products essential for the modern

world.

Job openings

Currently advertised positions for inspired and energetic people to join the Holcim team.

Job Search

Our international presence offers employees many opportunities around the world. We aim

to recruit, develop and retain people who enjoy their work and are inspired to contribute their

energy and ideas to building sustainable futures.

Employment opportunities within Holcim Group Support

As our Group Companies are managed locally you will find job offers and information on

how to apply on their jobs & careers sites.

Employees share their experiences of working for Holcim and developing a rewarding career.

It's our people that make our company successful.

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Discover the insider's view and get to know our employees working in different roles,

functions and countries. Find the testimonials that fit your preferences and let them inspire your

career plans.

Work for Holcim

Holcim's vision is to provide foundations for tomorrow's society. We are one of the world's

leading industrial groups and offer a wealth of opportunities for both experienced professionals and

graduates from various backgrounds.

Achieve success

Holcim aims to recruit, develop and retain the best people, and provide an inclusive,

supportive working environment for everyone from the most experienced executive to the newest

graduate recruit.

Develop as a leader

Ongoing success comes from identifying and guiding the development of present and future

managers in each Group company throughout the world.

Stay on track

Regular assessments, mentoring and coaching, meeting objectives and identifying new

challenges are all part of the career development process.

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Build an international career

Typically, a Holcim career begins in the country of origin, but based on performance,

international assignments are considered as an important step for future leaders.

Great career opportunities for young talents

Holcim focuses on development of professional and personal skills and encourages

teamwork as well as active contribution within a diverse cultural environment. Milo Degiorgi, 28, is

one of our many young engineers who took advantage of the great opportunities and challenges

Holcim offers to young talents.

Having studied mechanical engineering at bachelor level, Milo Degiorgi conducted a master's

degree in management technology and economics at the Swiss Federal Institute of Technology

Zurich, writing his master thesis about Holcim just before starting his career with the company in

2006. Today he is the Assistant to the Regional Technical Director for Holcim Eastern Europe in

Vienna.

The first contact with Holcim

In a lecture during Milo's studies, a Holcim engineer presented a company-related business

case. Impressed by the company he later contacted the guest speaker who told him about the great

opportunities at Holcim and encouraged him to send in his CV. This was when he was offered to

write his master thesis at Holcim Central Europe on Supply Chain Management. "I was welcomed

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very friendly and open", he remembers. "I enjoyed working together with those people so much

that I was extremely motivated both to excel in my final work at university and to support this

fantastic team the best I could". The result was that Holcim offered him permanent employment

after his studies.

Great challenges, tangible products and the benefits of an international company

As Assistant to the Regional Technical Director in Holcim Eastern Europe, Milo is responsible

for reporting the cement manufacturing's key performance indicators and is involved in a variety of

operative and strategic projects. He always wanted to work in an industrial environment, is

interested in production facilities, the goods produced and thus the related problems and

challenges. He always wanted to work for a company where tangible products are produced. From

this point of view Holcim is a fascinating company for him. "I'm sure that the heart of every engineer

will beat faster seeing the high preheater towers or the long turning cement kiln of a cement plant",

he exclaims enthusiastically.

Besides his fascination for heavy industry, he wanted to work for an international company

that offers global contacts and broad opportunities. As a global player in cement and construction

materials, Holcim is present in over 70 countries around the world and has a strong foothold in each

of its individual markets. This offers a truly multi-cultural working environment, global network

opportunities and the possibility to work abroad and meet people from different backgrounds and

cultures. "What I really love about my job besides the interesting tasks and great challenges it offers

me is that it gives me the opportunity to meet and work with a diversity of people from different

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countries", he says. He regularly meets with plant managers, production managers and engineers

from the countries around the region.

At Holcim everything is possible

Lots of young people work for Holcim, young talents that bring in new ideas, are engaged

and keen to succeed which also motivates others in the company. The fact that within Holcim we

live a culture of open communication helps new employees to get in touch with others and

familiarize with the company.

Holcim encourages its employees to take an active role in directing their careers and make

use of the wealth of programs and coaching options available. Young talents have the opportunity

to focus on their strengths and improve their weaknesses. Holcim has careers available for both

specialists and generalists. "If you have the energy, potential and inspiration you will get the chance

to grow. Nowadays we have many young people in management positions. You can see 29-year-old

production or maintenance managers, 32-year-old plant managers, or even regional managers or

technical directors in their mid forties", Milo confirms. And he adds, "And believe me, at holcim

everything is possible.

What is the working environment like?

Ours is a truly multi-cultural working environment with about 67 nationalities represented

across our business. We have an open and collaborative corporate culture that offers personal and

professional growth, genuine innovation and global networking. We want you to contribute your

ideas and energy and to take on experiences that will enrich your working and personal life.

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How do Holcim companies recruit?

The different companies of the Holcim Group recruit independently in the different

countries, though the access to the vacancies can be done through one click on the Holcim website.

The range of opportunities is broad and offers many career paths to follow with us - no matter

where you are in the world.

Do I have to specialize in one area of the organization?

Developing your full potential with Holcim requires a comprehensive understanding across

our business locations and functions. We have careers available for both specialists and generalists

that draw on the relationships you will build working with us. Whichever path you choose, you can

build your career with us.

What kind of career development will I receive?

Like our products, performance will be the basis of your career advancement. We encourage

our employees to take an active role in directing their careers and make use of the wealth of

programs and coaching we have available. If you have the energy, potential and inspiration then we

will provide the training and development tools at both a local and corporate level to support your

individual objectives.

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What is Holcim's compensation and benefits philosophy?

Our ambition to be the leading employer of choice in our industry is reflected through the

attractive packages we offer. We regularly review our practices against the external market, so

we're always able to attract and retain the best people. And when people need to relocate to join

our team, we make sure we provide the assistance needed to make it a smooth transition.

For Holcim, its about making sure we offer our people the complete package.

What kind of background do I need?

Opportunities at Holcim suit a diverse range of people with different backgrounds, trade and

academic experiences. Having a technical background or business knowledge will give you a head

start. We're looking for bright, capable people to think and plan with vision, to respond and execute

with efficiency and to use and develop their skills in flexible, globally oriented teams. If this sounds

like you, we want to hear from you.