about the report report on major business themes

About the report report on mAjor business themes

It is with great pride that we present to you, our readers, the Votorantim Cimentos Integra-ted Report 2013. In the preparation this report, we have sought to demonstrate our achie-vements, advances and efforts during the year, especially in relation to economic, financial, governance, social and environmental aspects.

For the first time, we have constructed a materiality matrix which is specific to Votorantim Cimentos. This has enabled us to identify the main issues relevant to the company’s business and to advance in the process of incorporating these strategic issues into the company’s ma-nagement processes. Prior to this, we had been using the materiality matrix developed by our parent company, Votorantim Industrial, for the Group’s industrial companies as a whole.

To enhance the credibility of the report, it has been prepared in accordance with the core option of the G4 version of the Global Reporting Initiative (GRI) guidelines, the most advanced methodology for sustainability reporting. We participate in the integrated reporting initiati-ve of the International Integrated Reporting Council (IIRC), and have described our business model and increasingly incorporated the IIRC guidelines into our management approach, through a process of continuous improvement. The report has also incorporated specific content established by the Cement Sustainability Initiative (CSI), of which Votorantim Cimen-tos is a signatory and founding member The CSI was created in 1999 by the World Business Council for Sustainable Development (WBCSD) to develop solutions for sustainability issues in the cement industry. Furthermore, the report content has been correlated to the principles of the Global Compact, an initiative of the United Nations (UN), which calls on companies to manage their businesses in accordance with ten universally accepted principles, in the areas of human rights, labor rights, environmental protection and anti-corruption.

Overall we have presented 39 indicators of the GRI framework for the period from January 1st to December 31st 2013 and information related to certain relevant events in 2014.

The information herein refers to the company’s operations in Brazil (VCBR), Canada and the United States (VCNA – North America), Spain, Turkey, India, Morocco, Tunisia, and China (VCE-AA – Europe, Asia and Africa) and Bolivia, Uruguay, Peru, Chile and Argentina (South America).

PricewaterhouseCoopers (PwC) audited the financial information and provided limited assurance on certain social and environmental information, and its opinions are included in this report on pages 15 and 17 respectively. [G4-17, G4-28, G4-29, G4-30, G4-32, G4-33]

This principle aim of this integrated report is to demonstrate our commitment to be accoun-table to all of our stakeholders in a transparent manner. In addition to presenting our pro-gress on our targets, the report aims to describe how we have incorporated an integrated management approach (economic, social and environmental) into our day-to-day business activities. Questions, suggestions and comments related to the report are most welcome and should be directed to the following address: [email protected]. Further information is available on our website: www.vcimentos.com.br. [G4-31]

i n t e g r At e d report 2013

Int

eGr

at

ed r

epo

rt

– 20

13

SUSTAINABLE PRACTICES

■ SAFETY■ ECO-EFFICIENCY AND INNOVATION■ ETHICS AND COMPLIANCE■ COMMUNITY ENGAGEMENT

OUR IMPACTS (OUTCOMES)■ CO2 EMISSIONS■ AIR EMISSIONS■ BIODIVERSITY AND LAND USE CHANGE■ WATER■ WASTE

OUR RESOURCES (INPUTS)■ HUMAN RESOURCES■ MINERAL RESERVES■ PLANT AND EQUIPMENT■ THERMAL AND ELECTRICAL ENERGY■ SERVICES INCLUDING TRANSPORT

OUR VALUE CREATION AND DISTRIBUTION (OUTCOMES)■ EMPLOYEE SALARIES AND BENEFITS■ GOVERNMENT TAXES■ ECONOMIC DEVELOPMENT

OF LOCAL COMMUNITIES AND SUPPLIERS

■ SHAREHOLDER DIVIDENDS■ CUSTOMER SATISFACTION

OUR PRODUCTS AND SERVICE (OUTPUTS)■ BASIC CONSTRUCTION

MATERIALS AND SERVICES■ INFRASTRUCTURE■ REAL ESTATE■ DO-IT-YOURSELF CONSTRUCTION■ INDUSTRY

OUR BUSINESS ACTIVITIESOUR VISION

EMPOWERED PEOPLE

BEST-IN-CLASS OPERATIONS

CUSTOMER FOCUS

Message froM the president 02CoMpany profile 04ConstruCtion of the Materiality 13Letter of assurance 15Market Context 18strategy 25Vision and strategic drivers 26Governance 29Risk management and compliance 32Economic performance 35speople 40sustainable praCtiCes 49relations with stakeholders 66gri index 76GRI statement 76additional inforMation 86UN Global Compact principles 103Financial statements 104

list of contents

2 VOTORANTIM CIMENTOS

Message froM the president one teaM, one coMpany [G4-1]

The year 2013 marked the beginning of a new cycle of value creation for Votorantim Cimentos. I joined the team this year, in June, with a mission to contribute to the continuation of the company’s success story. It is with great pride that I share with you the reasons for celebrating our achievements in the past year: we made significant progress in our operational results. We ended the year with a net income of R$ 12,142 million (+29%) and Ebitda of R$ 3,517 million (+14%), due to the good performance of our operations in Brazil and the United States, as well as the incorporation of our new operations in Europe, Asia and Africa (VCEAA).

As a result, our sales grew at a rate higher than the market average, with record production levels and increased market share in almost all our regions. In 2013, our cement sales volume reached 38 million metric tons (+31%) and our global installed capacity rose to 53.9 million metric tons per year, of which 31.7 million metric tons in Brazil.

It was also a year marked by the consolidation of our process of internationalization, as we began to reap more consistent benefits from the greater level of synergy in our operations. Based on this new global context we decided to rethink the way we do business.

The first step on this new journey was the creation of the movement “One Team, One Company”, with the aim of imple-menting global governance processes and seeking a greater level of integration between all our businesses. We began by organizing the many regions in which we operate into three geographical areas: Brazil, North America and Europe, Asia and Africa. Then, we set up the Global Executive Team (GET) to promote our global strategic alignment, harmonize poli-cies and implement best practices throughout the organiza-tion; similarly, we set up the Brazilian Executive Team (BET) to develop the integration of the operations in Brazil and capture functional synergies from the various businesses; we established the Votorantim Cimentos Board of Directors composed of members representing the holding company, shareholders and an external advisory and also Committees for Audit, Finance, Strategy, and Remuneration and People. In addition, as part of the process to improve management, we are increasingly seeking to implement the International Inte-grated reporting Council (IIRC) guidelines, that are founded on a more holistic view of business.

To strengthen our relations with customers we have re-thought and restructured the way we operate in sales and marketing. We are now directing our sales teams and the en-tire organization to “go to market” – with our Sales Excellence project. As a result of the restructuring, all of our sales teams

3 Integrated report 2013

are now organized by business segments and market the entire portfolio of products (cement, concrete, aggregates and complementary products such as lime and mortar). This enables them to better meet the needs of our customers and partners, in a comprehensive manner, rapidly and transpar-ently, and with a focus on creating mutual value. All of this aims to ensure that the customer will always find the product that fulfils the need and provides the best technical solution.

All these changes and transformations were guided by our vision that has guided our actions as from 2014. That is, we seek to be a construction materials company that is commit-ted to customer success through excellence. This is based on four main strategic drivers: customer focus, employees with autonomy, operational excellence and sustainable practices.

In relation to this last strategic driver, sustainable practices, Votorantim Cimentos has spared no effort to improve. Inter-nally, we have a number projects underway aimed at reducing the ecological footprint of our operations, not only in terms of carbon emissions, but also in terms of the more efficient use of water, the use of alternative fuels, the co-processing of waste and the search for more sustainable raw materials for our products. Votorantim Cimentos is a pioneer in Brazil in the production of artificial pozzolan, a cementitious mate-rial made from non-traditional inputs. This is an innovative technology that reduces both carbon emissions and the con-sumption of non-renewable natural resources. These projects are described in detail later in this report.

Our geographical reach is very broad and diverse and it is for this reason that each operating unit undertakes initia-tives to support the economic, social and cultural develop-ment of the surrounding region, based on a commitment to build strategies and actions by engaging in dialogue with the local communities.

Our strategic sustainability plan encompasses ethics and compliance with national and international laws and com-mitments. Since 2001 Votorantim Industrial has been a signatory of the United Nations Global Compact, an initia-tive which promotes the observance of human rights, labor rights, environmental protection and anti-corruption in business. Safety is another question that is being discussed at a global level with the aim of taking cultural differences into consideration however without making concessions on fun-damental principles and values. We strive to ensure that all of our employees and contract staff are informed about and follow our safety rules and are untiring in our efforts to reach a zero level of fatalities – a target which we failed to achieve in 2013. We are continually stressing the idea that safety is not

only one of our strategic drivers but is also a cross-cutting concept that we have to work on in order to embed it in all of our business activities. This is a driver of value not only for our shareholders but for all our stakeholders. Votorantim Cimentos, as the market leader in Brazil and one of the larg-est global companies in the construction materials sector, in-tends to play a leading role in the search for solutions to the sustainability challenges faced by the industry globally. We are working to achieve benchmark status as a responsible company that is economically, socially and environmentally sustainable.

Finally, the good financial results of 2013 contributed to our being “crowned” in April this year, by being awarded an investment grade rating, on a global scale, by Standard & Poors, Moody’s and Fitch Ratings. As a result, Votorantim Cimentos became the first Brazilian company in its sector to be awarded such a rating by the three major rating agencies. This recognition motivates us to move forward, to imple-ment a series of actions and initiatives that will lead us in the direction of our vision. This means truly incorporating structural and governance changes, leveraging the competi-tive advantages of this transformation and focusing increas-ingly on meeting the needs of our customers. In addition to conducting the business with transparency, following the best practices related to competition.

We are fully aware that the macroeconomic environment for 2014 is challenging, but we believe that we are well posi-tioned to seize opportunities and will continue to implement our R$ 10 billion investment plan. This plan, the largest in our history, began in 2007 and will extend out to 2016. The year of 2013 was also marked by the company’s planned offer to open its capital, which, due to adverse market conditions, was not completed. The company maintains its intention to open its capital, subject to a favorable market environment.

On behalf of the Board of Directors, I would like to thank our employees and partners for the part they have played in Vo-torantim Cimentos’ success story. I invite you all, together, to continue to help to build a company that focuses on people, strives for performance and operational excellence, inspires an atmosphere of trust and open dialogue, and contributes to the development of the communities where it operates. We are increasingly a global organization, with several “ac-cents”, but united in just “one voice, one team, one company.”

We hope you find the report a good read!

Walter Dissinger Global CEO of Votorantim Cimentos


coMpany profileone of the largest coMpanies in the world Votorantim Cimentos (VC) is part of the Votorantim Group, one of the larg-est business conglomerates in Brazil. It is a 100%, Brazilian-owned, company that produces cement, concrete, ag-gregates and complementary prod-ucts such as mortar and lime, and had 16,228 employees, and 528 trainees and apprentices at year-end 2013. It is one of the world’s ten largest companies in the cement sector and operates in Brazil and in over 13 countries in North America, South America*, Europe, Asia and Africa. The product portfolio con-sists of more than 25 products which are sold under a number of different brand names. Votorantim Cimentos first plant was opened in Brazil in 1936. [G4-3, G4-6, G4-9, G4-10]

* via shareholdings

historyVotorantim Cimentos began opera-tions in Brazil in 1936, and was, at the end of 2013, the market leader in Brazil with an approximately 36% market share. The company was founded in the city of Votorantim, in the state of São Paulo, where it built its first ce-ment factory, Santa Helena. In its early years of operation, the company won public tender for the redevelopment of the Viaduto do Chá in the city of São Paulo. The bridge, a metal frame with wooden flooring, was demolished in 1938 and replaced by the current struc-ture of reinforced concrete.

The company’s second cement plant, Portland Poty, was inaugurated in 1942 in Paulista, Pernambuco,to serve the Northeastern market and marked the beginning of the company’s expansion

the company was founded in the city of Votorantim, in the interior of the state of são paulo, Brazil, in 1933, when it began the construction of its first cement plant, called santa helena.

In 1973, following the death of José Ermírio de Moraes, his sons Antônio and José took control of the Group’s companies. In 1998, Votorantim Cimen-tos established a holding company, with its headquarters in São Paulo, to control all of the Group’s companies that pro-duced cement, lime, industrial mortar and concrete. [G4-4, G4-5]

In 2001, the company initiated a process of international expansion with the acquisition of St. Marys Cement Inc., a cement company with plants in Canada and the United States. This process continued, in 2007, with the acquisition of shareholdings in cement companies in South America by the company or its parent or affiliates. These included shareholdings in Bío Bío (Chile), Artigas (Uruguay) and Avellaneda (Argentina).

In the last quarter of 2012, the company completed an asset swap with the Portu-guese cement company Cimpor – Cimen-tos de Portugal SGPS S.A. (“Cimpor”), and as a result expanded the geographical reach of its operations by the acquisi-tion of cement plants in Spain, Morocco, Tunisia, Turkey, India and China, as well as limestone deposits in Peru.

Then, in 2013, the company made good progress on the implementation of its expansion plan in Brazil. Firstly, construc-tion started on a new plant in Edealina (GO) and the expansion of the existing plant in Xambioá (TO), secondly, the con-struction of the plant in Primavera (PA) advanced considerably and, thirdly, the plant expansions in Santa Helena (SP) and Rio Branco do Sul and the new plant in Cuiabá (MT) were completed. The Cuiabá plant went into operation in January.

5 Integrated report 2013Colored concrete test cylinders


Votorantim group’s VisionTo ensure the growth and long-term continuity of the organization as a large family-owned group, respected and admired by the communities where it operates, and focused on creating economic, environmental and social value, based on:

ethics and values that guide responsible busi-ness conduct.

highly competitive businesses. constant drive to incorporate creative and in-novative solutions in its portfolio.

people who are motivated to achieve high per-formance.

Votorantim group’s aspirationsTo grow in the long term and in a sustainable manner

To achieve world class standards in our operations and management, comparable to those of the best global companies.

Our values are represented by the acronym Sereu

Solidity – to seek sustainable growth with value creation.

Ethics – to act responsibly and transparently. Respect – to respect people and be willing to learn.

Entrepreneurship – to have the courage to grow, innovate and invest.

Union – the whole is stronger than the sum of the parts.

Aggregates


1977Established a leadership position in the Brazilian market with a market share of about 37%

1996Acquired a minority shareholding in Itambé

1933Construction began on the company’s first cement plant, Santa Helena, in Sorocaba (SP) - Brazil

2001Installed production capacity in Brazil reached 22 million metric tons/year Initiated international expansion: North America 2002

Diversified the product mix

2005Acquired minority

shareholdings in Brazil 2007 2009

Expanded in South America

2010 2011Acquired a 21.21% shareholding in Cimpor *

2012Exchanged assets with Cimpor

2013 2015 Initiated the expansion

plan in Brazil: 6 million metric tons/year

*acquired 4% in 2010 and exchanged assets with lafarge in 2011, resulting in a total shareholding of 21.21% in cimpor.

time-line

1936Inauguration of the Santa Helena cement plant


great lakes

spain

6.1Chinatunisia

turkey

5.2 1.7

3.1 3.0

Global network [g4-4, g4-8]

VCbr

16 ceMent plants

11 grinding Mills

119 concrete centers

25 aggregates plants

8 Mortar plants

1 liMe plant

47 distriBution centers

south aMeriCa7

6 ceMent plants

2 grinding Mills

45 concrete centers


2 Mortar plants

1 clinker plant

4 liMe plants

1 liMestone Mine

VCeaa

13 ceMent plants

8 grinding Mills

52 concrete centers


1 Mortar plant

2 clinker plants

12 distriBution centers

the diagraM Below shows our ceMent production capacity By country or region

1.2indiaflorida

braZil

2.86argentina1

uruguay4

Chile2

boliVia3

MoroCCo

peru

1 49% shareholding in avellaneda, argentina. 3 67% shareholding in the itacamba plant, Bolivia. 4 51% shareholding in artigas, uruguay. 5 includes 100% of annual installed capacity of suwannee, which was not consolidated in december 2013. 6 includes 100% of annual installed capacity of Bío Bío and avellaneda, which were not consolidated in december 2013. 7 shareholdings.

INSTALLED CAPACITy IN MTPy (Million Metric tons per year)

0.85

9.2%

0.2

2.26

0.5

31.71.2

VCna

5 ceMent plants

2 grinding Mills

141 concrete centers


sÃo paulo COMPANy’S HEAD OFFICE

17º Awards for Best Resale Products cimentos Votoran, itaú, poty, tocantins and ribeirão: 1st place in the category “cement” cal hidratada itaú: 1st place in the category “hydrated lime” cal de pintura itaú: 2nd place in the category “lime-based ink powder” Votomassa cerâmica interna: 2nd place in the category “Mortar” cimento Branco Votoran: 5th place in the category “textured coating”

Anamaco Awards 2013 Master award in the categories “cement” and “hydrated lime” 2nd place in the categories “spraying” and “large customers in adhesive Mortars”

Anamaco Top Award social responsibility category: “Votorantim cimentos professional training program” Marketing and sales category: “Votomassa makes it simpler: new Brand positioning and

operating Model”

10 years of the magazine”Marcas que eu gosto” (Brands I like)poty was the most mentioned cement brand in the categories: preference, Quality, cost-Benefit, tradition in the survey on “Brands i like”, organized by the newspaper “diario de pernambuco”.

Correio Sergipe Top Award 2013top award in the category “Brand of cement”, for the 5th consecutive year.

Top Brands Award 2013for four consecutive years, cimento poty won the top Brand award in the “cement” category granted by the magazine “revista top Marcas”.

Leaders in Environmental Innovation 2013 award granted by the clarington Board of trade to st. Marys Bowmanville plant.

Progressive Rehabilitation Award (2013)award granted by the ontario sand, stone & gravel association (ossga) to the Vcna aggregate plants located in cambridge, peterborough and Brighton. the award was in recognition of the progressive environmental rehabilitation of former mining areas.

Major honors and awards

9 integrated report 2013

VOTORANTIM CIMENTOS IS HERE, THERE AND EVERYWHERESee the "What?" and the "Where?" of our products

CEMENT

what?: it's a material that hardens when water is added and is the basic ingredient of concrete and mortar. It is used in all types of infrastructure from the simplest to the more complex.

where?: it is used all types of urban construction, blocks, floors, foundations, roofs, large dams, sanitation systems, roads, buidings, ports, bridges, concrete structures, and even works of art.

concrete road surfaces

port

reinforced concrete

foundations and pilings

underwater foundations sanitation systems

pre-molded paving

white cement flooring

lime paint

swimming pools

internal and external walls

large-scale construction

housing

highway surface and sub-base

hydrated lime in mortar

concrete blocks

agricultural lime

LIME PAINT

what?: it is a paint in powdered form which gives an extremely white finish, and has the lowest cost of all types of paint. It helps to prevent the growth of fungi or moulds due to the lime in its composition.

CONCRETE ARTIFACTS AND BLOCKS

what?: a cement artifact is a generic term used to describe a diversity of products ranging from concrete sewage pipes to concrete floor slabs, prefabricated terracing and stairways, fence posts, masonry blocks, roof slabs, floor paving slabs and urban infrastructure. The feature that best explains the use of the term “artifact” is the fact that it is produced in an industrial facility rather than at the construction site.

where?: an example of an artifact is the cement block used to build structural and non-structural walls. Due to being produced in standard sizes, it enables fast construction, lower consumption of mortar in its laying and finishing and there is the option to use it without any finishing.

AGRICULTURAL LIME

what?: used in agriculture to enhance the e�ects of fertilizers and nutrients, thus increasing the soil's productive capacity.

where?: used in agriculture to enhance the e�ects of fertilizers and nutrients, thus increasing the land's productive capacity.

HYDRATED LIME

what?: the ideal complement for cement in the composition of mortars for plastering and laying. This is because it provides a number of attributes to the mortar: gives plasticity to the mixture, prevents cracking and fracturing, provides adherence and strength, inhibits fungi and moulds and for these reasons ensures the durability of the work done.

where?: it is mixed with the mortar used for plastering walls and laying bricks and blocks.

GRAVEL AND SAND

what?: crushed stone used to make concrete and mortar.

where?: used in making concrete-asphalt mixtures, concrete in general, highway sub-base for heavy tra�c, road surfaces, mortars and drainage systems.

CONCRETE

what?: it is composed of a mixture of cement, sand, gravel and water. It is the most used material in civil construction, the second most used material in the world after water and one of the most versatile due to its having applications in many di�erent types of activity.

where?: building projects such as houses, residential and industrial buildings, infrastructure projects (subways, roads, dams, bridges) and special construction projects (monuments, historic buildings, museums, churches).

WHITE CEMENT

what?: a type of cement with a white color.

where?: used in all kinds of construction for finishings, patinas, industrial, commercial and residential floorings, among other uses.

MORTAR

what?: a mix of materials with binding and hardening properties. It is used mailnly to bind together blocks or bricks and for applying finishings to surfaces.

where?: used in adhesive materials to lay and grout floors, internal and external walls, porcelain and ceramic slabs, decorative stone-work, among other uses.

where?: painting many di�erent types of surfaces, including those which are porous, rough or irregular.

RIGID PAVEMENT

what?: a rigid pavement is made up of concrete slabs from Portland cement, which may be reinforced or not. The concrete pavement is considered to be “green” due to its sustainability characteristics, and its natural resources’ conservation. This technology has been employed in Brazil since the 1920’s.

where?: it is used to pave public transport surfaces (roads, avenues, bus lanes), highways, plane taxiing areas at airports, harbor areas, container storage areas, industrial areas, products storage areas and external areas subject to intense heavy goods vehicle tra�c flows.

12 VOTORANTIM CIMENTOSSobradinho (DF) Unit – Brazil


ConstruCtion of the materiality matrixVotorantim Cimentos’ strategy is guided by material issues

In late 2011 and the first quarter of 2012, the Votorantim Group held a meeting with external stakehold-ers at the Group level. The results were then used to provide guidance to the management teams of VID’s industrial companies and to prepare the Votorantim Cimentos Integrat-ed Report 2012, the first of its kind for the company.

In order to obtain a better view of the material issues and stakeholder per-ceptions specific to the cement sector, we carried out research in 2013/14, with the support of BSD Consulting.

The process for identifying the material issues for the cement sec-torwas composed of: an analysis of internal and industry information; results from employees’s survey concerning VC Integrated Report 2012; face-to-face interviews with the company’s senior and middle-management; and interviews, face-to-face or by telephone, with representatives of priority external stakeholder groups, defined by Votorantim Cimentos. The prior-ity groups defined were: custom-ers, suppliers, Board Members, employees, government entities and financial institutions. In total, 42 representatives from the above stakeholder groups were inter-viewed, of which 19 were from

internal groups and 23 from exter-nal groups, in the three regions where we operate, VCBR, VCNA and VCEAA. Finally, the results were consolidated and validated with the company’s senior management.

Of the 39 material issues identified in this process, 17 were validated as being of high priority, as can be seen in the following diagram (for the full list of issues, please see the Additional Information to this report on page 86).

These material issues will serve as a guide to review our sustainability strategy for the coming years, and to select and manage the GRI indicators that will be monitored and reported in this report, in order to meet the needs of our internal and external stakeholder groups (for further infor-mation please refer to the correlation between our material issues and the GRI aspects in the section on Additional information, page 87).

Now our mission is to help the teams in our overseas regions to define the maturity level for the management of each material issue and, following that, prioritize the focus for action and improvements, in accordance with our business ob-jectives and the expectations of our main stakeholders. [G4-24, G4-25, G4-26, G4-27, G4-18, G4-19]

of the many issues raised in the consultation process, seventeen were selected as being the most important.


Materiality Matrix

leV

el o

f in

flu

enC

e o

n t

he

eVa

luat

ion

s a

nd

d

eCis

ion

s o

f st

ake

ho

lder

s

1

2 3

4

5 6 7 8

9

10

11

1213

14

15

16 17

aVerage leVel of materiality high leVel of materiality Very high leVel of materiality

leVel of importanCe of the eConomiC, soCial and enVironmental impaCts

now our mission is to help the teams in our overseas regions to define the maturity level for the management of each material issue and, following that, prioritize the focus for action and improvements, in accordance with our business objectives and the expectations of our main stakeholders.

ethics, transparency and integrityoccupational health and safetyCo2 emissionspractices against corruption, cartels and unfair competitionregulatory riskssupply chain managementContribution to local developmenteconomic performance: value added generated and distributedCommunity relationsgovernment relationsenergy efficiencyalternative energy sources and alternative fuelsair emissions (particulate matter, nox, sox)management and reuse of civil construction waste and reverse logistics of cement bagsWater consumptionCustomer satisfactionbiodiversity preservation

1

2

5

6

7

8

9

10

11

4

3

13

14

15

12

16

17


Independent audItor’s lImIted assurancereport on the sustaInabIlIty InformatIon Included In the 2013 Integrated reportTo the Management Votorantim Cimentos S.A.São Paulo - SP

IntroductIon 1 We have been engaged by Votorantim Cimentos S.A.

(“VC” or the “Company”) to present our limited assur-ance report on the compilation and fair presentation of information related to sustainability included in the 2013 Integrated Report of Votorantim Cimentos S.A., related to the year ended December 31, 2013 (“2013 Integrated Report”).

management’s responsIbIlIty forthe 2013 Integrated report2 The management of Votorantim Cimentos S.A. is

responsible for the compilation and fair presentation of the information related to sustainability included in the 2013 Integrated Report in accordance with the criteria and guidelines of the Global Reporting Initiative (GRI-G4) for the Core Coverage Level and for such internal control as management determines is necessary to enable the preparation of information that is free from material misstatement, whether due to fraud or error.

Independent audItor’s responsIbIlIty 3 Our responsibility is to express a conclusion on the in-

formation related to sustainability included in the 2013 Integrated Report, based on our limited assurance en-gagement carried out in accordance with the Techni-cal Communication CTO 01, “Issuance of an Assurance Report related to Sustainability and Social Respon-sibility”, issued by the Brazilian Federal Accounting Council (CFC), based on the Brazilian standard NBC TO 3000, “Assurance Engagements Other than Audit and Review”, also issued by the CFC, which is equivalent

to the international standard ISAE 3000, “Assurance engagements other than audits or reviews of historical financial information”, issued by the International Au-diting and Assurance Standards Board (IAASB). Those standards require that we comply with ethical require-ments, including independence requirements, and perform our engagement to obtain limited assurance that the information related to sustainability included in the 2013 Integrated Report, taken as a whole, is free from material misstatement.

4 A limited assurance engagement conducted in ac-cordance with the Brazilian standard NBC TO 3000 and ISAE 3000 mainly consists of making inquiries of management and other professionals of the entity involved in the preparation of the information, as well as applying analytical procedures to obtain evidence that allows us to issue a limited assurance conclusion on the information, taken as a whole. A limited assur-ance engagement also requires the performance of additional procedures when the independent auditor becomes aware of matters that lead him to believe that the information related to sustainability, taken as a whole, might present significant misstatements.

5 The procedures selected are based on our understand-ing of the aspects related to the compilation and presentation of the information related to sustain-ability included in the 2013 Integrated Report, other circumstances of the engagement, and our analysis of the areas in which significant misstatements might exist. The following procedures were adopted:


(a) planning the work, taking into consideration the guidelines referred to in paragraph 2, above, the materiality and the volume of quantitative and quali-tative information, and the operating and internal control systems that were used to prepare the infor-mation related to sustainability included in the 2013 Integrated Report;

(b) understanding the calculation methodology and the procedures adopted for the compilation of indicators through interviews with the managers responsible for the preparation of the information;

(c) applying analytical procedures to quantitative information and making inquiries regarding the qualitative information and its correlation with the indicators disclosed in the information related to sus-tainability included in the 2013 Integrated Report;

(d) technical visits to the business units located in Brazil: Corporate São Paulo - SP, Corporate Curitiba - PR, Salto - SP, Itaú de Minas – MG; and abroad: Hasanoglan - Turkey, Temara - Morocco and Charle-voix - United States of America, in order to interview the members of management and collect data and information (evidence);

(e) verifying, with regard to the units above, the GRI-G4 indicators selected as the most significant for each business unit visited:

Business unit - Salto ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,

EN10, EN11, EN15, EN16, EN17, EN18, EN19, EN21, EN23, EN24, EN25, EN26, EN27.

..Social: LA6, LA7, LA14. ..Human rights: HR5, HR6. ..Society: SO1, SO2, SO3, SO4, SO5, SO6, SO7, SO8.

Business unit - Itaú de Minas ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,



Business unit - Hasanoglan ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,


.. Social: LA6, LA7, LA14.

Business unit - Temara ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,


..Social: LA6, LA7, LA14.

Business unit - Charlevoix ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,


..Social: LA6, LA7, LA14.

Corporate business unit - São Paulo ..Organizational profile: G4-12. ..Material aspects identified and limits: G4-18, G4-19. ..Stakeholder engagement: G4-24, G4-25, G4-26, G4-27. ..Economic: EC1. ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,



Corporate business unit - Curitiba ..Organizational profile: G4-12. ..Material aspects identified and limits: G4-18, G4-19. ..Stakeholder engagement:G4-24, G4-25, G4-26, G4-27. ..Economic: EC1. ..Environmental: EN1, EN2, EN3, EN6, EN7, EN8, EN9,



(f) verifying the compliance with the requirements es-tablished by GRI-G4 for Core Coverage Level reports.

6 We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our limited assurance conclusion.

scope and lImItatIons 7 The procedures applied in a limited assurance engage-

ment are substantially less detailed than those applied in a reasonable assurance engagement, the objective of which is the issuance of an opinion on the infor-mation related to sustainability included in the 2013


Integrated Report. Consequently, we are not able to obtain reasonable assurance that we would become aware of all significant matters that might be identi-fied in a reasonable assurance engagement, the objec-tive of which is the issuance of an opinion. If we had performed an engagement with the objective of issu-ing an opinion, we might have identified other matters and possible misstatements in the information related to sustainability included in the 2013 Integrated Re-port. Therefore, we do not express an opinion on this information.

8 Non-financial data are subject to more inherent limitations than financial data, due to the nature and diversity of the methods used to determine, calculate and estimate these data. Qualitative interpretations of the relevance, materiality, and accuracy of the data are subject to individual assumptions and judgments. Furthermore, we did not consider in our engagement the data reported for prior years, nor future projec-tions and goals.

conclusIon 9 Based on the procedures performed, described herein,

no matter has come to our attention that causes us to believe that the information related to sustainability included in the 2013 Integrated Report has not been compiled and fairly presented, in all material respects, in accordance with the guidelines of the Global Re-porting Initiative (GRI-G4), specific for Core Coverage Level reports.

São Paulo, March 17, 2015

PricewaterhouseCoopersAuditores IndependentesCRC 2SP000160/O-5

André Pannunzio Candido OliveiraContador CRC 1SP-196603/O-1”S” SP


market Context groW faster than the market

Over the past five years, Votorantim Cimentos has developed, mod-ernized and expanded its cement plants in Brazil. It increased the in-stalled capacity of cement produc-tion from 21.4 million metric tons in 2007 to 31.7 million metric tons in December 2013. The company has also focused on diversifying its installed capacity in concrete and aggregates in order to offer a complete range of products to its customers. Change is inherent to a vertically integrated business, al-lowing it to capture a greater share of the cement value chain, and to provide integrated solutions to meet customer needs. The company will also continue to benefit from its vast sales experience in a wide variety of products and markets.

Votorantim Cimentos has estab-lished an investment plan to in-crease its annual production capac-ity of cement in order to meet the projected growth in demand. De-mand is expected to increase due to pressure from increases in average incomes, the existing large housing deficit and the implementation of major infrastructure projects by the Brazilian Federal Government. All of these should generate growth opportunities for the civil construc-tion sector - particularly for cement, concrete, aggregates, mortar and other basic construction materials.

The annual per capita consump-tion of cement in Brazil grew at an

the company focused on the diversification of its concrete and aggregates installed capacity in order to offer its customers a complete range of products

average annual rate of 8.2% between 2007 and 2012, according to the Na-tional Union of the Cement Industry (SNIC). This was equivalent to 2.3 times the real GDP rate of growth in the same period, according to the Brazilian Institute of Geography and Statistics (IBGE). The Federal Government has announced plans to substantially increase public and private spending on infrastructure through the Growth Acceleration Program (PAC), with an estimated investment of R$ 1,016 billion by 2014. Of this total, approximately 23.9% of the funds to be disbursed were destined for highways, ports and airports, among other projects, as from February 2014.

Between 2012 and 2015, the Federal Government plans to invest approxi-mately R$ 390 billion in residential housing construction in Brazil to reduce the national housing deficit, which is currently estimated at 5.2 million homes according to the National Household Sample Survey 2012 conducted by the IBGE.

In line with its view of the im-portance of customer focus, the company believes that due to its full product range of basic construction materials it can generate opera-tional and commercial synergies, thus differentiating it from the competition. Our products cover the spectrum from standard cement, such as Portland cement, to high strength cement. In addition, we


Sobradinho (DF) Unit – Brazil


can provide customized cement products to meet specific customer needs, including for major infra-structure projects. Examples are the Belo Monte hydroelectric plant, under construction in the state of Pará, with a reported total cost of R$ 30 billion, and the Santo Antônio and Jirau hydroelectric plants, lo-cated in the state of Rondônia, with reported total costs of R$ 17.5 billion and R$ 17.4 billion respectively.

The company’s market positioning is founded on a high level of brand recognition, customer loyalty, the superior quality of its products and an extensive distribution network. These attributes were made pos-sible by economies of scale, reliable product supply and country-wide availability. Through its extensive and country-wide distribution network of 47 distribution centers, strategically located close to major markets, the company is able to serve approximately 30 thousand customers per month in 3,350 cities across Brazil.

The company believes that in Brazil there is currently a higher aggregate demand for concrete products compared to other construction materials. This is due mainly to infrastructure projects such as ports, airports, dams, sanitation projects and government-subsidized housing, and will result in increased sales of bulk cement.

projeCtions for brazilIn Brazil, the company’s installed capacity for cement production was 31.7 million metric tons at year-end 2013. Although forecasts had been more optimistic at the end of 2012, Brazil’s GDP grew by only 2.3% in 2013. Foreign direct investment, for building plants and improving infrastructure, remained at a high level, but declined in 2013 compared to 2012. According to research published by the United Nations, the flow of foreign direct investment to Brazil declined by US$ 2 billion in 2013 compared to the prior year. As a result, the country fell from 4th to 7th position in this world ranking. [G4-6]

This reduced level of investment in the Brazilian economy also adversely impacted the civil construction sec-tor, since progress on infrastructure projects did not occur at the rate anticipated. The direct causes for these delays, in addition to the lower level of investment in the public sec-tor projects, were the low availability of bank financing, credit limitations and the high cost of real estate.

Despite this economic scenario be-ing less favorable than in prior years, Votorantim Cimentos increased its revenues in Brazil by 4.4%, com-pared to 2012, equivalent to an in-crease of 1 million metric tons in the volume of sales. This rate of growth was twice the average obtained by the civil construction market (2.2%), considered to be a good level of per-formance. The company’s sales area also continued to pursue its goal of diversifying its sales and customers by providing a full range of products.

The company’s sales growth was especially significant in the bulk cement segment, whose main customer base is the infrastructure construction industry. The company

supplied, and continues to supply, cement and concrete to nine of the ten largest projects in the Federal Government’s Growth Accelera-tion Program (PAC). This program includes projects in a number of industries such as petrochemicals, highways, power generation, ports and airports. It is therefore a busi-ness segment that is expected to grow in the coming years due to domestic demand. [G4-8]

In addition to the large infrastructure projects, the housing market played an important role in the results we achieved in 2013. We believe that this market still has a high growth poten-tial due to the country’s substantial existing housing deficit and the avail-ability of financing.

Votorantim Cimentos’ strategy to increase sales in 2013 was based on expanding the availability of prod-ucts and strengthening the quality of customer service. In addition we carried out a project to restructure our sales area. The new structure be-came fully operational in the South Region in 2013. Implementation in the other regions will move forward in 2014, starting early in the year with the Southeast Region and con-tinuing, later on, with the Northeast and Central-North regions. As a result of this restructuring the sales teams are no longer segmented by product lines. All sales areas will now sell the entire VC range of prod-ucts. We expect that this will gener-ate business synergies and facilitate the interface between the company and its customers, who will now be able to centralize their purchases through a single sales contact.


expansion plan Between January 2011 and December 2013, we invested R$ 3 billion in expansion projects in Brazil, aiming to increase our installed cement production capacity from 23.2 to 31.7 million metric tons per year. Our most important expansion projects in 2013 were as follows:

initiation of the construction of a new plant located in edealina (go). Completion of the construction of a new plant in Cuiabá (mt), which

went into operation in january 2013. Completion of the plant expansion in santa helena (sp), with the

installation of a new cement grinding mill, which went into operation in august 2013.

good progress in the construction of the plant in primavera (pa). Completion of the plant expansion in rio branco do sul (pr) with the

start-up of a new furnace. expansion of the plant in xambioá (to).

Santa Helena cement plant, in Votorantim (SP), the Group’s first plant


Votorantim Cimentos’ international operations inClude north ameriCa (the united states and Canada), europe, asia and afriCa

Charlevoix, Michigan, USA

St Marys, Canada


global sCene In 2013, even though the economies of the regions where Votorantim Ci-mentos operates exhibited different trends, the growth scenarios in the company’s markets were generally very positive throughout the year.

North americaIn North America, Votorantim Cimentos is represented by its sub-sidiary Votorantim Cimentos North America (VCNA), which controls the operations in the United States and Canada. In 2013, the North American market showed signs of recovery, and the revival of economic growth, once again, stimulated growth in the real estate market. Thanks mainly to this economic recovery, VCNA’s sales volume grew by 1.3%.

In these markets, differently to Brazilian market practices, cement is usually sold in bulk to concrete companies. In 2013, approximately 61% of VCNA’s cement sales were in the Great Lakes region (USA and Canada). Besides this, the company sold cement to precast concrete manufacturers and construction companies. We believe that VCNA is well positioned to benefit from the expected economic recovery and the demand from the civil construction sector in these regions. The Portland Cement Association (PCA) has esti-mated that cement consumption in North America will increase by 8.2% in 2014 and 9.8% in 2015.

europe, asia and africaIn June 2012, the company signed an asset swap agreement with Ca-margo Corrêa Cement Luxembourg S.à.rl and InterCement Austria Hold-ing GmbH. We exchanged our 21.21% shareholding in Cimpor for pro-duction plants in Spain, Morocco, Tunisia, Turkey, India and China, and a limestone deposit in Peru.

In December 2012, the exchange was completed, resulting in an increase of 16.3 million metric tons per year in the company’s total installed capac-ity for cement production. Following the closing of the transaction we have improved the return on the acquired Cimpor assets by capturing synergies, improving cost efficiency and rationalizing industrial opera-tions. Furthermore, the company is implementing a plan to dispose of its operations in China and expects such sale to be consummated in 2015. In the case of Spain, we view the business scene as one that requires caution due to the ongoing economic crisis. However we believe that the European continent as a whole is a market that will recover in the medium term, and we plan to be well positioned in the region to benefit from this growth. The North African region (Morocco and Tunisia) has shown signs of good growth prospects. Similarly to India, these markets are characterized by high housing deficits, which should ensure a strong rate of growth in ce-ment demand in the coming years.

sales growth Votorantim Cimentos north america’s sales volume grew by 1.3%

24 VOTORANTIM CIMENTOSTurkey


StrategyMore autonoMy

In 2013, Votorantim Cimentos under-went a significant change in its gov-ernance model, aiming at strength-ening its management approach to meet the challenges of positioning the company as a global player and of the increased business complex-ity. As a result of this restructuring, the company gained full autonomy to define the most relevant issues for its business (for more information please see the section on Construc-tion of the materiality matrix), and its strategies for the short and long terms. [G4-13]

Votorantim Cimentos’ governance model was restructured as part of a management approach for a global enterprise

Furthermore, in 2013, the company carried out a strategy review and established four main drivers that will now guide the actions and decisions of employees at all levels, starting in 2014 (please see below). The goals were, firstly, to con-solidate Votorantim Cimentos as a construction materials company, committed to customer success through excellence and, secondly, to develop a new sustainability strategy by the end of 2014.

Customer focus We take our decisions based on the customers’ needs We have specific business models to serve customers with different aims and needs We work to ensure that the actions of all the company’s areas converge to deliver the result

that the customer needs

Empowered people We value leaders who achieve their goals through teamwork, creating strong, diverse and

engaged teams We want people who take the initiative to act We work together to create solutions and make them happen

Best-in-class operations We track our performance and are obsessed with continuous improvement We make decisions quickly, with discipline and consistency We strive to maximize productivity in all areas

Sustainable practices Safety first! We always act in an ethical manner, and in accordance with local laws and regulations We strive to improve eco-efficiency and seek to develop innovative products and processes We encourage dialogue and close relations with our local communities to perpetuate the

Votorantim legacy

our visionStrategic drivers



STrATEGIC DrIVEr TArGETS 2020 ProGrESS STATuS In 2013

SAFETY

Safety

To ensure the implementation of the Global Policy and rules for Saving Lives in all of our business units ongoing ongoing

To achieve zero fatalities and LTI frequency rate for direct employees < 0.4. Promote satisfactory working conditions for all our employees and third-party contract staff.

page 52Fatalities: 2LTI Frequency rate: 0.9

ETHICS AnD CoMPLIAnCE

Ethics and compliance

Ethics and compliance: ensure that all our operations are in line with Votorantim Cimentos’ Code of Conduct

page 32 ongoing

ECo-EFFICIEnCY AnD InnoVATIon

Global Sustainability Standards

To ensure the implementation of our Global Environmental Policy and Green rules in all our business units

ongoing ongoing

To ensure the implementation of global sustainability standards for our supply chain in all our business units

page 75

82% of suppliers were approved by considering sustainability criteria

Sustainable products and services

To achieve a reduction in the clinker/cement factor to 72% by means of the development of sustainable innovations, new products and services

pages 54 and 94 76%

Co2 emissions To reduce our Co2 emissions per metric ton of cement by 25% compared to 1990 levels. page 54 -15%

Low-carbon fuels To use at least 30% of low-carbon fuels in our energy mix for cement production page 53 6.40%

recycled materials To ensure that at least 5% of our concrete contains recycled materials. page 61 ongoing studies

Air emissionsTo reduce Particulate Matter, nox and So2 emissions to 65, 1,950 and 750 g/metric ton of clinker, respectively

pages 52 and 91PM: 114nox: 2,249So2: 953

Water and biodiversity

To implement water management plans for scarcity areas in our business units. To ensure that all of our quarries have rehabilitation and biodiversity management plans by 2020 for local and sensitive biodiversity regions.

page 61 MM10: 78% MM2: 6%

CoMMunITY EnGAGEMEnT

Community Engagement

To ensure the implementation of a community engagement plan in areas where VC operates that have a high degree of social vulnerability

page 66 15%

COMMITMENTS ANd RESulTS


SuStainabilityThe company considers sustainability to be a cross-cutting theme and part of the DnA of every business area and activity. In late 2013, it established the Global Directorate for Energy, Sus-tainability and Safety. This directorate is responsible for managing Votoran-tim Cimentos’ sustainability strategy, which is based on the following four main themes: safety; ethics, trans-parency and integrity; eco-efficiency and innovation; and stakeholder engagement.

Sustainability issues are presented to the Global Executive Team (GET) at its

The significance of sustainability for VC Sustainability for us in VC means creating long-term value for all stakeholders by pursuing the following strategies: meeting our ambition to grow while considering the present and future needs of society; offering eco-efficient building materials and services to our customers; creat-ing an inspiring, healthy and safe working environment for our employees and third-party contract staff; and supporting the development of local communities.

monthly meeting, by the Global Direc-tor of Energy, Sustainability and Safety, for discussion and approval. The most important sustainability topics, such as the company’s sustainability strat-egy and long-term commitments (for 2020), were approved by the Board.

The criteria for the variable remu-neration of the company’s senior managers - the President and Vice-presidents - include sustainability targets. These targets, which are tied to specific issues such as energy efficiency, safety and GHG emis-sions, are then cascaded down the organization.

Suwanee American Cement, cement plant in Florida (uSA)


In late 2013, Votorantim Industrial decided that all of its subsidiar-ies should go through a process of renewal and evolution of their respective corporate governance models. Consequently, as was the case for the Group’s other industrial companies, Votorantim Cimentos established a Board of Directors. [G4-34, G4-38]

The Board of Directors is responsible for deciding on strategic questions and approving short and long term policies, according to the company’s bylaws and Brazilian Corporate Law. The Board is composed of six perma-nent members, one of whom being an independent member. Members are elected by the General Assembly and have a joint term of office of two years.

This new governance model also in-cluded the creation of Board stand-ing committees for specific topics. Furthermore, the structure aimed to ensure the consistency of manage-ment practices in all the countries where VC operates. Action plans and market trends or regulatory changes will be addressed in an equivalent manner and adopted globally.

In this process to improve our man-agement approach we seek increas-ingly to integrate financial, gover-nance, social and environmental information, in consonance with the International Integrated reporting Council (IIrC) guidelines.

governanceVC Standing CoMMitteeSIn accordance with the company’s bylaws, the Board of Directors has established standing committees to provide advice on specific and predefined topics. The four standing committees are:

Statutory Audit Committee Finance Committee remuneration and People

Committee Strategy Committee

Statutory Audit CommitteeIn line with the best corporate governance practices, our Statu-tory Audit Committee, is composed entirely of independent members. It is responsible for the ongoing monitoring of financial reporting issues, including financial state-ments, internal controls, policies and procedures, risk management, complaints to the ombudsman, compliance with laws and regula-tions and the relations with, and monitoring of, internal and external audit activities.

Finance CommitteeThe Finance Committee is composed of from three to five members, elected for a term of one year. It is responsible for: presenting medium and long-term market scenarios; proposing and monitoring the an-nual performance targets, and the budget required to achieve them; monitoring our performance, mar-ket developments and internal and external benchmarking; analyzing and proposing best practices; offer-ing suggestions on tax and regulato-ry issues; analyzing and monitoring the annual investment plan, capital

structure and cash flow, working capital requirements and appropri-ate financing alternatives.

Remuneration and People CommitteeThe remuneration and People Committee is composed of three members, elected for a term of one year. It is responsible for: advising on matters related to human resources; discussing proposals to alter hu-man resources policy; analyzing the performance and action plans of the area; discussing actions that affect the remuneration of senior manage-ment (merit, promotion and bonus); and hiring senior managers.

Strategy CommitteeThe Strategy Committee consists of three to five members elected an-nually by the Board. It is responsible for: monitoring and analyzing the context of the Brazilian and global industry and the implications for the company’s competitive position; discussing and advising the Board on short, medium and long-term strategic issues, including competi-tiveness, new markets and prod-ucts, innovation and sustainability; advising on investment opportuni-ties and/or divestitures; proposing long-term strategy and defining guidelines for multi-year plans; and advising the Board and the remu-neration and People Committee on setting incentives to capture the company’s value potential.


Executive teams The Global Executive Team (GET) consists of the Global President, Walter Dissinger, the regional Vice-Presidents (for VCBr, VCnA and VCEAA), the Vice-President for Finance and Investor relations and the executive directors for the global areas for People and Management, Corporate Development, Legal and Energy, Sustainability and Safety. The regions also have their Executive Teams, as follows: Brazilian Executive Team (BET) for VCBr; north American Executive Team (nAET) for VCnA; and the European, Asian and African Executive Team (EAAET) for VCEAA.

CoMMitMentSVotorantim Cimentos has signed a number of voluntary pacts and initiatives, both global and national. [G4-15, G4-16]

UN Global Compact – Votoran-tim Industrial has been a signatory of this pact, an initiative of the unit-ed nations (un), since 2011. Its main objective is to encourage companies to respect human rights, support decent work, promote environmen-tal protection and combat corrup-tion. More information is available at: http://www.pactoglobal.org.br/ (please see the table of principles and page references for this report in the Ad-ditional Information, page 102 ).

Cement Sustainability Initia-tive (CSI) – The CSI is a global effort by 24 major cement producers who believe there is a strong business case for the pursuit of sustainable development. These companies operate in more than one hundred countries and account for 30% of global cement production. VC has been a member of this initiative since it was founded in 1999. The

the Votorantim institute is responsible for allocating resources to projects which benefit local communities

objective is to promote sustainable development in the cement industry through the dissemination of best practices, exchange of experiences, the publication of guidelines on sus-tainable development, and also the stimulation of stakeholder engage-ment (please see the section Strategy on page 25 for more information on the CSI indicators and the company’s perfor-mance). More information on CSI is available at: http://www.wbcsdce-ment.org/

“Na Mão Certa” (In the Right Direction) Program – Since 2006, VC has participated in this program which is part of the Business Com-pact, a joint initiative of Childhood Brazil and the Ethos Institute for Business and Social responsibility. By signing this compact the signato-ries commit to combating the sexual exploitation of children and adoles-cents on Brazilian highways. http://namaocerta.org.br/

Cooperação Técnica SBE-VC-RBMA – This is a partnership among the Brazilian Society of Speleology, the Atlantic rainforest Biosphere

reserve and Votorantim Cimentos. The partnership will develop, imple-ment and disseminate information on social and environmental best practices in limestone areas. The aim is to contribute to the protec-tion and preservation of biodiversity and caves (for more information, please see the section on Sustainable prac-tices on page 49).

VC also maintains ongoing relations with government entities in the regions in which it operates in order to participate in the discussions and preparation of public policies, there-by contributing to local develop-ment. Furthermore the company’s employees participate in forums and public hearings in various areas of government to discuss and pro-pose requests or regulations.

Social investments (support for projects) are undertaken by the company based on guidelines set by the Votorantim Institute with the aim of generating benefits for the local community and the prospect of creating a more mature business environment.


NEw CORPORATE gOVERNANCE MOdEl [G4-34]

GLoBAL EXECuTIVE TEAM VoTorAnTIM CIMEnToS GoVErnAnCE STruCTurECoMPAnIES unDEr VID MAnAGEMEnT

VOTORANTIM BANk

VOTORANTIM FINANCIAl HOldINg

VOTORANTIM PARTICIPAçõES (VPAR) BOARd

VOTORANTIM INSTITuTE BOARd

FAMIly BOARd

VOTORANTIM INSTITuTE

FINANCE COMMITTEE

REMuNERATION ANd PEOPlE COMMITTEE

IMAgE ANd REPuTATION COMMITTEE

VOTORANTIM INduSTRIAl (VId)

PEOPlE & MANAgEMENT glOBAl VICE-PRESIdENTCLAuDIA SoArES

BRAzIl PRESIdENT PAuLo MoTTA

CFO & IROLorIVAL Luz

CORPORATE dEVElOPMENT glOBAl VICE-PRESIdENTMArCELo CHAMMA

lEgAl glOBAl VICE-PRESIdENTALEXAnDrE D’AMBroSIo

ENERgy, SuSTAINABIlITy ANd SAFETy glOBAl VICE-PRESIdENTEDVALDo rABELo

CEOWALTEr DISSInGEr

VOTORANTIM METAIS BoArD

FIBRIA BoArD

CITROSuCO BoArD

VOTORANTIM SIdERuRgIA BoArD

VOTORANTIM CIMENTOS BoArD

VOTORANTIM ENERgIA BoArD

STATuTORy AudIT COMMITTEE

FINANCE COMMITTEE

REMuNERATION ANd PEOPlECOMMITTEE

STRATEgy COMMITTEE

glOBAl INTERNAl AudIT dIRECTORrICArDo TurrA

NORTH AMERICA PRESIdENT MArTY FALLon

EuROPE, ASIA ANd AFRICA PRESIdENTErIk MADSEn


risk management and compliance [G4-14]

Votorantim Industrial has been building a platform for risk manage-ment since 2008. In 2013, following the change in the Group’s gov-ernance model, each industrial com-pany set up its own risk manage-ment structure. Correspondingly, Votorantim Cimentos created the risk Management and Compli-ance area, within its global Finance Directorate. [G4-DMA]

The risk Management and Com-pliance area reports monthly to the Statutory Audit Committee, the Global Executive Team and the Brazilian Executive Team. our con-cept of risk follows the overarching guidelines of the Votorantim Group and considers not only impacts from financial and legal issues but also those from social, environmental and reputation aspects.

Votorantim Cimentos is continually developing its governance practices and methodologies in order to bet-ter manage the risks related to the company’s operational context. A good example of this was the imple-mentation of the ISo 31000 risk management standard in all of our units worldwide. This standard was developed based on best market practices. As a result, the company has ensured that there will be a uni-form process for risk management in all units, regardless of the country in which they are operating.

Cooperation between the Compli-ance and Internal Controls areas pro-vides a robust response process to assist the business areas in manag-

ing their risks and in ensuring that the company honors its commit-ment to regulatory compliance.

Code of ConduCtIn 2005, Votorantim Industrial intro-duced a Code of Conduct, inspired by the values and vision of the Votoran-tim Group. The Code expresses our commitment to ethics in our rela-tions with customers, employees, shareholders, suppliers, govern-ment, media, communities and society in general. The Code applies to all of the Group’s companies and provides guidelines for the conduc-tion of their business activities.

The Code of Conduct is a tool that determines the expected behavior for employees and provides manda-tory guidance for the actions and de-cisions of all Votorantim Cimentos’ companies in Brazil and overseas. The Code is available in Portuguese, English, Spanish and Mandarin at: http://www.votorantim.com.br/pt-br/ouvidoria/codigoConduta/Pa-ginas/codigoConduta.aspx [G4-56]

In addition, we have developed a Compliance Program and policies for Conformity with Fair Competition and Anti-Corruption laws. These policies are in line with the best national and international practices, and the current legislation in all countries where we operate. These are complemented by a Corporate Policy for Electoral Donations.

ISO 31000 global implementation of the iSo 31000 guidelines for risk management


CADE administrative proceedings [G4-So7] on May 28, 2014, the Administrative Council for Economic Defense (CADE) issued its judgment on the administrative proceedings relating to an alleged cartel in the cement sec-tor. It condemned Votorantim Cimentos and five other com-panies in the sector for alleged anti-competitive practices. In its judgment, CADE considered that Votorantim Cimentos and the other companies, as well as trade associations and industry executives, had committed acts in violation of the competition laws.

Votorantim Cimentos does not agree with any of the allega-tions made against it and intends to appeal the conviction in the court. The company reaffirms that it has always acted, and acts, in accordance with the law and does not approve of any anti-competitive practices.

ethiCS and tranSparenCy[G4-So4, G4-So7, G4-So8] By means of its communication chan-nel for complaints the company has identified cases of conflict of interest, fraud and misconduct. [G4-DMA]These occurrences have been ad-dressed and corrective measures have been taken to mitigate the impacts. [G4-DMA] The company has developed a report on fraud risks (FrA - Fraud risk Assessment), which serves as a tool to evaluate business practices. Furthermore, it has set up a training program for all managers re-garding the Brazilian Anti-Corruption Law (no. 12,846 of 01/08/2013).

There were no legal actions related to corruption or lawsuits against the company for unfair competition, or trust or monopoly allegations in 2013. From the perspective of accounting only the fines and financial impacts of non-monetary sanctions greater than r$ 1 million were provisioned. In this report we have provided information on both the amounts involved for legal actions received and those paid and finalized in 2013.

The main labor-related legal actions referred to legal quotas, working hours and regulatory standards. The legal actions related to tax matters referred, principally, to income tax, social contribution tax on net income, goods and services tax and service tax. In 2013, the company made penalty payments related to 401 labor and social security cases in a total amount of r$13.6 million.

EMPLoYEES 2013

VCBr

Director/President* 12

Manager 41

Coordinator/Consultantr 2

VCnADirector/President* 22

Manager 4

ToTAL VC 81

*The category Director/President refers to senior management

TOTAl NuMBER OF EMPlOyEES TRAINEd IN ANTI-CORRuPTION POlICIES ANd PROCEduRES [g4-SO4]

Fabiola

Nota

Marked definida por Fabiola


oMbudSMan As from 2013, the Group determined that all matters relating to infrac-tions of the Code of Conduct, such as harassment, discrimination, suspected fraud, abuse of power and illegal acts involving any of the companies of the Votorantim Industrial, should be reported to the Corporate ombudsman. This is an independent body that handles complaints and requests on a confidential basis and where the identification of the complainant is optional. This same channel can be used for queries on the Code of Conduct.[G4-41, G4-57, G4-58]

The ombudsman channel is available to all stakeholders of Votorantim Industrial (VID), which includes employees, suppliers, customers, communities and the media. All complaints sent to the ombudsman are reviewed by conduct commit-tees composed of members of the Votorantim Group’s administration. Investigations are conducted by Corporate Audit, which then sends the results back to the ombudsman. Every complainant receives feedback on the occurrence he reported.

In order to standardize the under-standings and guidelines for action on cases received by the ombuds-man, the Group established an ombudsman Policy, valid for all its companies. The remediation mea-sures, for the complaints considered valid, are taken in accordance with

ombudsman 0800-8911729 www.votorantim.com/pt-br/ouvidoria

Education and trainingIn order to provide ongoing educa-tion and training opportunities in risk management and compliance for its employees, the company has prepared training courses on the laws, regulations and policies that relate to the company’s compliance, anti-corruption and fair competi-tion programs.

The training plan has been divided into two modules: anti-corruption and compliance with fair competi-tion. The training courses were initially given to employees in leadership positions, including direc-tors and managers, because these groups of employees were consid-ered to represent a high level of risk in assessments conducted by Ernst & Young in 2013. In 2014, the com-pany aims to train the remaining employees in high risk groups who were unable to attend the courses held in 2013. It also intends to train a broader range of employees, includ-ing analysts, via e-learning.

In the case of suppliers and business partners the standard contracts have been revised. The new con-tracts, General Terms and Condi-tions for Hiring, contain clauses aimed at strengthening anti-corrup-tion measures among its commer-cial partners. Although no formal training has been provided to these groups, the company has informed and given guidance to them on its anti-corruption policies.

the rules set out in the Code of Con-duct, namely: guidance, warning, transfer, dismissal or termination of contract.

In 2013, the company’s ombudsman Working Group organized training courses aimed at improving the professional skills of the ombuds-man team, strengthening and dis-seminating the ombudsman culture in all business areas and in all Group companies. Training courses in Data Privacy, Anti-Corruption and Moral and Sexual Harassment were given, in order to reinforce the understand-ing of the consequences of the oc-currence of incidents of this nature in the workplace.

Following the introduction of the new governance structure, as from 2014, each VID industrial company will have its own ombudsman. Complaints will be dealt with at bi-monthly meetings between Internal Audit and the Votorantim Cimentos’ Conduct Committee.


economic performance [G4-DMA]

In its 80-year history in the industry, completed in 2013, the company has developed a body of know-how and technical knowledge that is being applied throughout its global opera-tions. The ongoing measures taken to reduce operating costs, the ability to respond to market fluctuations in a timely way, and its high operation-al standards have boosted the com-pany’s ability to increase profitabil-ity, even in extremely difficult market conditions. These efforts enabled the company to continuously improve its key performance indicators. A good example was the improvement in furnace efficiency obtained by reducing the proportion of clinker and increasing the use of alternative fuels. This gain in efficiency, coupled with the in-house production of clin-ker, increased the company’s ability to control operating costs.

the know-how and technical knowledge, accumulated in Votorantim Cimentos’ more than 80 years of history, are used throughout its operations

over the years, the company has positioned itself to maintain a high level of profitability and to create value for its shareholders. This was based on the organic expansion of operations in Brazil and abroad, a vertically integrated platform and a presence in high growth markets. From 2010 to 2013, the company’s in-stalled capacity for cement produc-tion in Brazil increased from 23.2 to 31.7 million metric tons per year, and its total global production capacity reached 53.9 million metric tons per year. In the coming years, Votoran-tim Cimentos intends to continue to grow, with financial discipline and an appropriate capital structure, po-sitioning itself as the market leader in terms of profitability.

Votorantim Cimentos’ head-office in São Paulo


Financial results in 2013 [G4-DMA]Votorantim Cimentos recorded good financial results in 2013. Total net revenue amounted to R$ 12,142 million, 29% higher than in 2012. The company’s revenues grew by 4.4% in Brazil, compared to 2012, higher than both the growth in the market average of 2.2% and the Brazilian GDP of 2.3%.

The growth in sales volumes was due to increased demand from the civil construction sector and the consolidation of the results of the operations in the Europe, Asia and Africa regional markets.

Cement production is a capital in-tensive activity, based on the mining and processing of natural resources. Thus, the company’s cost structure is mainly based on the processing costs, particularly energy, and the maintenance and operation of the production facilities. In 2013 the cost of goods sold and the selling, general and administrative expens-es increased by 33.31% and 32.02% respectively, compared to 2012, primarily due to the consolidation of the results of the operations in Europe, Asia and Africa.

The consolidated gross profit in-creased by 21.8% compared to 2012, and net income in 2013 amounted to R$ 1,388 million, reflecting the company’s high profitability. This was due to its management model, replicated globally, which is based on cost control, efficient use of raw materials and the economies of scale in both sales and production, as well the hiring of experienced and qualified professionals.

The efficient management of liquidity and bank debt based on an adequate capital structure is a

SaleS volumeS(MIllIon)

26

51.7

15

tons oF cementtons oF aggregatescubic meters oF concretetons oF mortar

BRAzIl

noRTh AMERICA

EuRoPE, AsIA AnD AfRICA

4 4

11

8

30.57

5


tons of cementtons of aggregatescubic meters of concretetons of mortar

priority for the company. In 2013 we intensified our capital market activities, raising funding through bond issues and long-term loans, in order to extend the average ma-turity of our outstanding debt and improve our level of liquidity. As a result we ended 2013 with an aver-age debt maturity of 9.3 years. In the coming years, the company will fulfill its commitment to maintain an adequate profile of liquidity and

DescrIptIon 2011 2012 2013

Direct economic Value GenerateD 11,269,100 12,190,637 15,197,222

1. revenues 11,269,100 12,190,637 15,197,222

1.1) sales of products and services 11,205,555 11,916,935 14,875,281

1.2) other revenues (expenses) 65,467 284,779 363,292

1.3) provision for doubtful debts -1,922 -11,077 - 41,351

2. Inputs acquired from third parties -5,740,720 -5,009,488 -7,346,362

2.1) cost of products and services sold -5,740,720 -5,009,488 -7,346,362

3. Gross value-added 5,528,380 7,181,149 7,850,860

3.1) Depreciation, amortization and depletion -441,055 -544,307 -773,093

4. net value-added produced 5,087,325 6,636,842 7,077,767

5. Value-added received in transfers 515,481 135,911 504,009

5.1) equity pick-up 311,753 -160,533 127,908

5.2) realization of other impacts on written-down investments 0 0 0

5.3) Financial revenues 203,728 296,444 376,101

6. total value-added to distribute 5,602,806 6,772,753 7,581,776

average debt maturity, consistent with obtaining an investment grade rating from the rating agencies.

At year-end 2013, the company’s gross debt totaled r$ 13,501 million, of which 95% were long-term maturi-ties, and it had a cash position of r$ 1,940 million. the company’s lever-age, measured by the ratio of net debt to adjusted ebitda, was 3,28x at December 31, 2013.

Statement of Value added & diStributed (In r$ tHoUsAnDs)* [G4-ec1]

* After the adoption of IFRS 11, as from January 1, 2013, we began to recognize the result of joint-ventures as equity pick-up and not as a percentage consolidation. As a consequence, the figures for 2011 and 2012 were also revised to make them comparable.


The Statement of Value-Added pro-vides detailed information on the direct economic value generated and distributed by the company, in-cluding revenues, operating costs, employee remuneration, donations and other community investments, retained earnings and payments to capital providers and governments.

20%

45%

17%

18%

dISTRIBuTION OF VAluE-AddEd IN 2013

eMployee SalarieS and benefitSpayMentS to goVernMentSreMuneration of third-party CapitalreMuneration of oWn equity

DESCrIPTIon (In r$ THouSAnDS) 2011 2012 2013

7. Distribution of value-added 5,602,806 6,772,753 7,581,776

7.1) remuneration and benefits 685,570 1,106,852 1,479,595

7.1.1) Direct remuneration 540,323 939,092 1,260,893

7.1.2) Benefits 145,247 167,760 218,702

7.2) Taxes, tariffs and contributions 2,967,973 2,709,736 3,444,661

7.2.1) Federal 1,531,195 1,442,343 1,434,708

7.2.2) State 1,659,819 1,737,549 1,940,548

7.2.3) Municipal 30,575 31,293 35,307

7.2.4) Deferred taxes -253,616 -501,449 34,098

7.3) remuneration of third-party capital 1,041,791 1,315,682 1,268,685

7.3.1) Financial expenses 976,142 1,230,908 1,161,897

7.3.2) rental payments 65,649 84,774 106,788

7.4) remuneration of own equity 907,472 1,640,483 1,388,835

7.4.1) Dividends 288,823 1,044,172 900,000

7.4.2) Distributions to non-controlling shareholders 19,347 23,684 61,011

7.4.3) retained earnings 599,302 572,627 476,681

7.4.4) net income from discontinued operations. 0 0 - 48,857


NET REVENuE By PROduCT lINE (CuSTOMER REVENuES) In r$ THouSAnDS

CeMent ConCrete aggregateS other

2,099,121 2,280,468

378,932 754,835706,192 777,311

2012 2013

6,211,178

8,329,674

356.195 372.570

2012 2013

2.787.930

3.516.695

296.873

3.071.9242.775.051

AdjuSTEd EBITdAIn r$ THouSAnDS

brazil north aMeriCa europe, aSia and afriCa * ConSolidated

*the operationS in europe, aSia and afriCa Were inCluded only in the reSultS for 2013.

%

6

69

6

19

%

84

2266

% 10

90

%

10

79

11


people people that perforM

our 16,228 employees represent a fundamental asset for the company and, for this reason we work, day-by-day, to build a better working environment

In 2013, as part of the restructuring of the governance structure, the Human and organizational Develop-ment (HoD) area was transformed into the Global Directorate for People & Management. It is respon-sible for human resources activities and total quality processes, includ-ing management systems, targets and indicators. [G4-DMA]

Votorantim Cimentos had 16,228 em-ployees at year-end 2013. our people are a key asset and so VC takes action, day-by day, to create a better working environment, one where employees feel valued and have opportunities for growth. [G4-10, G4-LA1, G4-DMA]

ToTAL oWn EMPLoYEES* 2013

VCBr ** 9,392

VCnA 3,552

VCEAA*** 2,978

South America 306

Total 16,228

Interns, summer students and apprentices 528

Grand total 16,756

* The total number of own employees corresponds to those working in the units of the regions considered for Group management, namely: VCBR (Votorantim Cimentos, Brazil), VCNA (Votorantim Cimentos, North America), VCEAA (Votorantim Cimentos, Europe, Asia and Africa) and South America (shareholdings held by Votorantim Cimentos, Brazil).** Salaried employees and trainees. *** Includes China.

JoB CATEGorYL WoMEn MEn

Director/President 4 8

Manager 73 68

Coordinator/Consultant 49 65

Technician/Analyst/Supervisor 61 129

Trainee 165 185

Operator 72 54

Intern 5 38

Apprentice 3 13

Total 56 66

Grand Total 64

*The management of the indicator has not been automated and standardized for all the regions . For 2014 we plan to set up a corporate university, ystematize the management of training and the and establish the governance of the subject of education and training. The data refers only to VCBR.

AVERAgE NuMBER OF HOuRS OF TRAININg* [G4-LA9]

41 Integrated report 2013rio Branco (Pr) unit – Brazil


Votorantim Cimentos’ Management Beliefs

Develop talent – We invest time and resources in developing our tal-ented people because we believe in and trust them.

Meritocracy – We believe that people are individuals and deserve to be treated fairly and in accordance with their personal performance.

Excellence – We believe we can always do more and better, overcoming challenges with discipline, humility and simplicity.

Pragmatism – We believe that it is essential to devote time and energy to what is most relevant, with objectivity and without losing sight of the big picture and the future trends.

Open dialogue – We believe that an atmosphere of trust fosters open dialogue and ensures that all have room to talk and to be heard, and that a diversity of opinions leads to better solutions.

Partnership – We believe our success is a result of collaborative efforts, strengthened by genuine relationships and partnerships in which every-one wins.

Sense of ownership – We believe in people that take on responsibili-ties, work with passion and lead by example, celebrating their achieve-ments and using mistakes as opportunities for learning.

Sobradinho (DF) unit – Brazil


deVelopMent and training Votorantim Cimentos cares about the development of its employees, and for this reason the company established the Votorantim Devel-opment System (VDS). under this system all employees are evaluated and receive feedback from their managers on their performance and adherence to the company’s beliefs. The evaluation meeting is also an opportunity to identify employee training needs for inclusion in the Annual Training Plan. This plan includes collective training activities and Individual Development Plans, which are focused on both training and other activities aimed at accel-erating employees’ careers. The VDS also includes the activities of the Vo-torantim Academy, which focuses on the development of the company’s leaders in relation to topics such as People Management, Performance Management and Strategic Manage-ment. The Votorantim Academy also develops our younger employees through its realize Potential Pro-gram. All these practices are aimed at increasing VC’s rate of internal recruitment, which is approximately 67% today. [G4-LA11]

The performance evaluation system is linked to remuneration for 100% of employees, in all functional catego-ries. For directors, managers, coor-dinators, consultants, technicians, analysts, supervisors and trainees the company applies a variable remuneration criterion, and for op-erational employees, the collective profit sharing program (PPr).

2013

Employees leaving employment by region número %

Women 258 3

Men 1,968 22

Employees leaving employment by age range número %

Less than 30 years old 800 9

Between 30 and 50 years old 1,279 14

More than 50 years old 147 2

Employees leaving employment by region número %

South 556 6

Southeast 937 10

Center-west 253 3

north 68 1

northeast 412 5

Brazil 2,226 25

new employees hired by gender número %

Women 202 2.2

Men 1,717 19.1

new employees hired by age range número %

Less than 30 years old 907 10.1

Between 30 and 50 years old 954 10.6

More than 50 years old 58 0.6

new employees hired by region número %

South 520 5.8

Southeast 734 8.2

Center-west 210 2.3

north 83 0.9

northeast 372 4.1

Brazil 1,919 21.3

* Employees of the VCBR units integrated in the SAP system (excluding interns and train-ees). The table does not include data for VCNA and VCEAA, which are still in the process of being consolidated.

TOTAl NuMBER ANd RATES OF NEw EMPlOyEE HIRES ANd EMPlOyEE TuRNOVER By AgE gROuP, gENdER ANd REgION* [g4-lA1]


reMuneration and benefitS [g4-la2]In addition to their fixed remu-neration all Votorantim Cimentos’ employees are eligible for the variable remuneration program, which aims to recognize and reward performance, encourage align-ment between the areas and guide employees’ actions in relation to the defined strategic objectives.

VC’s variable remuneration depends on the employee’s position and sal-ary group. This allows the employee to increase his total remunera-tion according to his professional development, as follows: Variable remuneration = remuneration for individual and corporate goals ap-plicable to leadership and profes-sional staff; and the Profit Sharing Program (PPr) = remuneration for collective goals for operational staff. The whole process is based on the breakdown of the targets in the company’s strategic plan.

The definition of the salary group for each position depends on the knowl-edge, intellectual complexity and responsibility for results required to carry out the function. using this as-sessment job positions are weighted and allocated to salary groups.

All VC employees receive certain benefits mandated by law includ-ing: health assistance, accident assistance, occupational health certificate, maternity leave, pater-nity leave, food vouchers, basic food allowance and transportation. In addition all company employees re-ceive medical and dental care, group life insurance, pharmacy benefit and pension plans (optional). Further-more, VC participates in the Citizen Company Program and offers mater-nity leave of 180 days, provided the employee expresses interest.

Employees with children in elemen-tary school are entitled to a refund of the expenses for school materials on presentation of the invoice and proof of the child’s enrollment.

In terms of health benefits, the com-pany has established the Better Life program, which includes a series of health-related initiatives and activi-ties for employees and their fami-lies. one such initiative is “VC cares about your health”. The employee’s health conditions are monitored by telephone with the aim of support-ing participants to exercise self-con-trol in relation to their health and clinical stability, as well as reinforc-ing their doctors’ recommendations. In a similar manner, the Employee Support Program, created in 2009, provides guidance on a number of aspects which can adversely affect health: legal, financial, emotional, marital or family, alcohol and drugs. Both programs are run by multi-disciplinary teams of professionals and all information is confidential. In addition, there are initiatives on dietary reeducation and the proper use of the health plan.

In 2014, a new program, called “Mom, Baby and Company”, was established to give support to preg-nant employees. The mothers-to-be who are enrolled in the program receive information by email and telephone from health professionals with answers to their questions and guidance on pregnancy. [G4-LA12]

RV

the company’s variable remuneration system is composed of programs related to job category and salary group and enables employees to increase their total remuneration in line with their professional growth.

hiring and turnoVer In 2013, the turnover rate for VC Brazil was 25%, versus a recruitment rate of 21%. VC plans to reduce tur-nover by investing in a management system that reconciles and details processes and standards, sharing the knowledge and expertise of indi-vidual areas with the whole of the company. knowledge, when shared, ceases to be personal and becomes part of the company’s processes. [G4-LA1, G4-LA11]

flaviareport

Sticky Note

Marked set by flaviareport


diVerSity VC has made a commitment to hire people with disabilities as part of its efforts to maintain the diversity of its workforce. [G4-DMA]

In relation to the balance between the numbers of men and women employed, the company aims to de-velop, as from 2014, the concept of Model units. under this concept at least one unit in each business must be a benchmark for this theme. In late 2013, the project began to be implemented in Cajamar (SP), where at that time 90% of employees were men. The company plans to increase female participation in the workforce from the current 10% to 35% be means of structural projects, ranging from support for primary education in local schools to im-provements in the unit itself.

CoMPoSITIon oF MInorITY GrouPS In THE orGAnIzATIon

GEnDEr (%) AGE rAnGE (%)

MEn WoMEnunDEr

30 YEArS oLD

BETWEEn 30 AnD 50

YEArS oLD

ABoVE 50 YEArS

oLD

Director/President 0.15 0.01 – 0.05 0.10

Manager/General Manager 1.17 0.25 0.01 1.17 0.24

Coordinator/Consultant 2.55 0,55 0.20 2.42 0.48

Technician/Analyst/Supervisor 13.49 4.15 4.05 11.83 1.76

Trainee 0.05 0.02 0.07 – –

operator 65.37 6.73 25.62 39.21 7.27

Intern 1.65 1.74 3.29 0.09 0.01

Apprentice 1.32 0.80 2.12 – –

Total Employees** 85.74 14.26 35.36 54.77 9.86

* Votorantim is consolidating its global processes to obtain information on the total number of people with disabilities. In this respect, the operations in Brazil have a partnership with a consulting company which specializes in the hiring of people with disabilities.** Employees of the VCBR units integrated in the SAP system.

dIVERSITy ANd EquAl OPPORTuNITy INdICATORS* [g4-lA12]

One Team, One Company In 2013, VC began a profound restructuring of its governance structure. Managers, employeesand contract staff ad-dressed the challenge of developing new strategicdrivers for the company. As a result the “One Team, One Company” vision was launched. This vision substituted the view of VC as an inward-looking, industrial company for one that looks out-wards, at the market and its needs, and makes the client one of its main priorities (for more information, please see the section on Strategy on page 25).

DIVErSITY* 2013

Men 87.6%

Women 12.4%

Women in management positions 16.5%

* Employees of the VCBR units registered in the SAP system (excluding interns and trainees)


interaCtiVe internal CoMMuniCationThe Integrated System for Internal Communication employs , mainly, direct communication and engage-ment to ensure the dissemina-tion of the company’s vision and strategy, by stimulating dialogue, openness and pride in belonging.

As well as face-to-face communica-tion, the employee has access to nine communication channels, con-sidering digital and printed formats. In this way the company can reach all employees even though they are geographically dispersed and composed of people from different cultures and levels of education.

VEHICLE ConTEnT FrEquEnCY ForMAT AuDIEnCE

Gestão à Vista information on results monthly bulletin board

all employees

Jornal Mural (Psiu) corporate and local news weekly print and digital

Boletim Já recent and urgent news as necessary print and digital

Nosso Grupo

group strategy

Votorantim Group quarterlyprint

Entrenós (regional and business areas) Votorantim

Cimentos

bimonthly

Com VC quarterly web

Departamento informa directorate/area as necessary print and digital

VC intranet portal information on the institution, areas, applications and news online web employees

with email

Informe executivo alignment and updating of leadership teams monthly digital leaders

INTERNAl COMMuNICATION CHANNElS

dialogue and feedbaCk Each leader is encouraged to imple-ment direct communication forums, through which he can talk and listen to his team. These initiatives seek proximity and knowledge. There are several institutional tools available for communication between employees and the company:

Ombudsman: available to all em-ployees to indicate situations that are in conflict with the Code of Conduct, in confidence. The telephone contact numbers are disclosed on notice boards at the units, in meeting rooms, on the intranet and internet, and in printed copies of the Code. A copy of the Code is given to all employees during the integration process (for more information please see the section on risk Manage-ment and Compliance on page 32).


“Com VC” (With VC): employ-ees can submit questions to the president during his quarterly web-conference. In the four confer-ences last year over 170 questions were answered on a variety of topics which included strategy, remunera-tion, expansion plans, the IPo and acquisitions.

“Fale com os Presidentes” (Speak to the Presidents): an internet channel, through which employees can submit suggestions, questions and complaints to the president and the executive vice president for the Brazilian region.

“Palavra do Leitor” (The reader’s comment): employees may also communicate with the Votorantim Group through this channel, which is accessed through the internal publi-cation “nosso Grupo” (our Group).

The Internal Communication Inte-grated System is being revised to adapt it to the new global gover-nance structure. The objective is to provide support and guidance to all the company’s operations in Brazil and overseas.

fighting diSCriMination [g4-hr3]In 2013, the ombudsman channel received 273 complaints related to cases of discrimination (harassment and abuse of power). All complaints

2011 2012 2013

Complaints received by the ombudsman - cases of harassment and abuse of power – – 273

Complaints considered valid - cases of harassment and abuse of power 63 104 93

dISCRIMINATION CASES [G4-HR3]

were analyzed. of this total, 93 were considered valid and resulted in appro-priate measures being taken, 134 were considered unfounded, 10 were closed due to the lack of information for analysis and the remaining 36 are still under evaluation. For the cases con-sidered valid appropriate action was taken. no complaints were received for discrimination related to race, age, gender, religion, social origin, nation-ality, or political opinion. [G4-DMA]

As determined by the company’s Code of Conduct, a process of consequence management is used to address valid complaints. The sanctions include includes guidance, warning, transfer, relocation and/or dismissal. For the 93 cases considered valid in 2013 the fol-lowing actions were taken: three writ-ten warnings; 10 verbal warnings; eight dismissals; and eight others underwent training. For the remaining 64 cases, the actions taken were not specified.

The information generated by the system is monitored on a daily basis. This information is reported regularly to the Audit and Conduct Committees, and serves as a basis for the discussion of the strategies to be adopted. The numbers of complaints has increased in recent years due to the company’s efforts to establish communication channels for complaints, the increase in the number of operating units and a higher level of confidence in the use of these channels by employees.

dialogue each leader is encouraged to implement direct communication forums, in which he can talk and listen to his team.

48 VOTORANTIM CIMENTOSSobradinho (DF) Unit – Brazil, one of the locations where a Community Council was established.


SuStainable practiceSthe reSponSibility of being a global benchmark

following the creation of the global Directorate for energy, Sustainability and Safety a new sustainability strategy will be developed

Sustainability is a theme that permeates all areas and sectors of the Votorantim Group. In late 2013, the company created the Global Directorate for Energy Sustainabil-ity and Safety, with the following responsibilities: improve the energy efficiency of operations; promote social and environmental responsi-bility programs; define policies and guidelines on health and safety; implement global greenfield and brownfield projects; manage the company’s long-term geological impact and develop new sources of strategic inputs (cementitious materials). The first priority of this division was to establish, in 2014, a new sustainability strategy for VC, to guide its vision at a global level.

We aspire to become a benchmark in Brazil and the world, as a socially and environmentally responsible company that strives for excellence in its business activities and helps to change the image of the cement sector as an industry with a high environmental impact.

Although environmental laws are different in each of the countries where we operate, we always try

to be ahead of potential increased requirements or restrictions set by governments. In this respect, Votorantim Cimentos has dedicated resources to stimulate and develop initiatives to reduce CO2 emis-sions, improve the eco-efficiency of operations, promote sustainable growth in the communities where it operates and preserve biodiversity. We believe that all of these aspects, as well as having intrinsic value, are important for the present and for the future of our business.


EnvironmEntal policyIn 2011, in Brazil, Votorantim Cimentos launched its Environmental Policy and 10 Green Rules. Together they comprise a set of guidelines that define the expected behavior of employees in relation to selected environmental issues. These documents are being reviewed and the new version will be disseminated globally in the near future.

our environmental policy principles are

1 LEGAL AnD OThER REqUIREmEnTS always be in accordance with the legal requirements applicable to the organization and its commitments.

2 EnVIROnmEnTAL mAnAGEmEnT SySTEm implement and maintain our environmental man-agement system to ensure we meet our environ-mental commitments, with a focus on continuous improvement.

3 USE OF nATURAL RESOURCES strive for eco-efficiency in the use of natural resourc-es in our operations, such as fuel, raw materials, water, energy and other materials.

4 EnVIROnmEnTAL ImPACTS assess, control and reduce the environmental impacts of our activities, focusing on continuous improvement and the adoption of industry best practices.


Green rules Based on our six principles for environmental policy, we also developed the 10 green rules to facilitate the dissemination of the policy among own employees and contract staff.

1 PRESERVE VEGETATIOn2 PRESERVE WATERWAyS3 DISPOSE OF WASTE PROPERLy4 REPORT OPERATIOnAL PROBLEmS WITh ThE

POLLUTIOn COnTROL SySTEmS5 DO nOT mISTREAT OR CAPTURE WILD AnImALS6 DO nOT CARRy OUT ACTIVITIES In PROTECTED AREAS7 PRESERVE CAVES AnD ARChAEOLOGICAL SITES8 DO nOT BURn VEGETATIOn9 DO nOT WASh OR STORE InPUTS In

UnAUThORIzED AREAS10 USE nATURAL RESOURCES RESPOnSIBLy

5 InnOVATIOn invest in innovation to improve our processes, prod-ucts and services, throughout their life cycles, with a focus on the reduction of environmental impacts.

6 EnGAGEmEnT WITh STAkEhOLDERS promote ethical and transparent relations with our stakeholders through processes that meet the de-mands related to environmental issues.

Sobradinho (DF) Unit – Brazil


health anD Safety [g4-la6]The cement industry faces risks which are inherent to its activities. Votorantim Cimentos’ goal is zero ac-cidents or fatalities. We have reduced the frequency rates of accidents with lost time in our plants. The biggest challenge, however, continues to be the occurrence of fatalities.

In 2013 we had four fatalities in our operating units, of whom one was a direct employee and three were indirect employees. In addition there were 15 fatalities on public roads and highways, more than half of which we classified as third parties*. A number of actions are already being taken in 2014 to reduce fatalities.

We have three main programs to promote safety in our operations, as follows: “Rules for Life” - the goal is to decrease the number of accidents by creating a safer environment by the use of safety equipment, methods and processes; “Manager walking in the area” - encourages leadership to have more contact with employees and be more present in field operations especially during health and safety inspections; and “Right of Refusal” - the employee may refuse to carry out a task if he considers the conditions to be inadequate or unsafe.

Our safety indicators have been calculated according to the CSI methodology and are presented on page 90 this report. [G4-DmA]

* Third party – any person who is not ca-tegorized as employed directly or indirectly by Votorantim Cimentos. In general, third--parties include customers, visitors to com-pany locations, and drivers or passengers who are involved in accidents off-site, with company or contractor vehicles, but only if company responsibility was involved.

inveStmentS in environmental protection [g4-en31]In 2013, we invested R$ 130.3 million in environmental programs, more than twice the amount of R$ 59.5 million for 2012. This increase was due to investments in new waste co-processing waste projects, which were approved in 2011 and 2012 and disbursed in 2013, and other im-provements and adaptations. Other projects developed during the year were: research on caves and water tables, maintenance and monitor-ing, emission treatment and plans for closures and the rehabilitation of areas. In the case of our Europe, Asia and Africa Region, whose results were consolidated into our financial statements in 2013, the amounts invested were recorded as other environmental costs. [G4-DmA]

2011 2012 2013

Waste disposal, emissions treatment, and remediation costs *

77,409,786 31,826,306,00 48,132,668

Costs of environmental prevention and management **

20,655,952 24,880,414 64,692,580

Other environmental costs 12,808,230 2,770,920 17,487,837

Total 110,603,968 59,477,640 130,313,086

*Includes treatment of air emissions, solid waste and effluents and plans for closures and the rehabilitation of areas. **Includes environmental education, environmental manage-ment, preservation, reforestation and biodiversity and environmental insurance.

EnvironmEntal invEstmEnts [G4-EN31] (In R$)

WinD fenceWe installed a wind fence at the Port of Imbituba (SC) to improve environmental management at the coke terminal. The fence cost R$ 6 million and prevents the wind from blowing the coke all over the terminal. The fence was built in partnership with the Federal University of Rio Grande do Sul (UFRGS) and, together with other improvements, such as the use of c a dust agglomeration product during the unloading of the coke and a crusting agent applied to the piles of coke resulted in a significant reduction of the dispersion of particles.


eco-efficiencyThe main initiatives aimed at increas-ing the eco-efficiency of our opera-tions were the reduction of the use of fossil fuels and energy consump-tion, with a consequent reduction in greenhouse gas (GhG) emissions. The cement industry is responsible for around 5% of global CO2 emis-sions. [G4-En15, G4-En16, G4-En17, G4-En19, G4-En27, G4-DmA]

We have invested in co-processing in cement production to reduce the use of fossil fuels and non-renewable raw materials. As well as reducing the emissions of pollutants, this process utilized waste that would otherwise have been disposed of in landfills. Another advantage of co-processing in cement production is that there is no generation of by-products, such as

ash, since all solid matter is incorpo-rated into the clinker produced.

In Brazil, more than 90% of our inte-grated plants (with furnaces) have been licensed for co-processing. In 2013, we implemented this process in four plants: Vidal Ramos (SC), Rio Branco do Sul (PR), Laranjeiras (SE) and Cuiabá (mT). In 2013, the use of co-processing in cement production resulted in the substitution of 11% of the thermal energy from fossil fuels. [G4-En2, G4-En6, G4-En7]

Despite the increase in the rate of thermal substitution, by the use alter-native fuels and biomass in some re-gions, the inclusion of the new VCEAA operating units brought an additional challenge for the company. most of these plants did not have projects to

thErmal substitution ratE (%)

1990 2011 2012 2013

10

1

5.6

2.9

8.5

3.7 3.5

7.2

3.1 3.3

biomaSSloW carbon foSSil fuelStotal

use substitute fuels and materials, mak-ing it more difficult for VC to achieve its ambitious goal of reaching a level of 30% thermal substitution by 2020.

Another initiative taken was the strat-egy to mitigate the GhG emissions from the plant in Santa Cruz (RJ). This plant was installed inside the Thyssen-krupp steelworks in order to benefit from the reuse of slag produced by the blast furnace. The use of slag as an additive in cement production reduces the amount of clinker required. As a result, this reduces GhG emissions, energy consumption and the emission of other pollutants. By 2015, we expect to have reduced GhG emissions by 7.6% compared to 2012, which is higher than the 5% reduction established by the State Institute for the Environ-ment, Rio de Janeiro. [G4-En6, G4-En7]

6.4

Target for 2020: increase the thermal substitution rate to 30%.


Life-cycle assessment In 2014, CSI completed the development of a tool for the preparation of environmental product declarations. member companies can use it for the preparation of environ-mental product declarations for their own products. In the coming years, Votorantim Cimentos plans to prepare environmental product declarations for a range of prod-ucts for sustainable construction.

ghg emiSSionS inventory [g4-en15, g4-en16, g4-en17, g4-en18]Votorantim Cimentos prepares an GhG emissions inventory using the CSI methodology for its cement plants, and the GhG Protocol for its aggregates, concrete and complementary products units. The CSI methodology was devel-oped by the World Business Council for Sustainable Development (WBCSD) for the cement industry. The GhG Protocol was developed by the WBCSD and the World Resources Institute (WRI) and applies to all types of industry. The ap-proach adopted was that of operation-al control and the base year was 1990. The GhGs considered in the inventory were: carbon dioxide, methane and nitrous oxide for the units producing aggregates, concrete and complemen-tary products, and carbon dioxide for the cement plants. [G4-DmA]

The main source of GhG in cement production is the calcination process, which releases a large amount of CO2. The emissions of other GhGs such as Ch4 and n2O are relatively insignificant. For the cement indus-try, CO2 represents approximately 99% of total GhG emissions, accord-ing to calculations made using the CSI methodology. Thus, in the case of the cement plants CO2 was the only GhG emission considered. For the aggregates, concrete and comple-mentary products units, we consid-ered methane and nitrous oxide in addition to CO2.

In 2013, the company’s direct GhG emissions increased due to increased production. The indirect GhG emis-sions, from electric power consump-tion also increased, but by a higher percentage due to increased produc-

clinkEr/cEmEnt Factor (%)

81

1990

76

2011

74

2012

* This indicator increased in 2013 due to the con-solidation of VCEAA and the lower availability of cimentitious materials (such as slag).

76*

2013

Target for 2020: reduce the clinker/cement fac-tor to 72.3% by the increased use of alternative raw materials.


tion and the consolidation of the new operating units in the Europe, Asia and Africa region. Furthermore, the supply of electric power from hydro-electric plants in Brazil was adversely impacted by water shortages in 2013. This led to an increased percentage of electric power from thermoelectric plants in the overall energy mix and consequently increased the GhG emission factor of the network.

The company’s total GhG emissions have reduced considerably in recent years due to the use of more efficient technologies, the substitution of conventional fossil fuels by alterna-tive fossil fuels and biomass, and the substitution of conventional raw materials by alternatives. however, in 2013, total CO2 emissions increased compared to 2012, due mainly to the reduced availability of slag, which is

eSpecific groSS co2 emiSSionSSpecific net co2 emiSSionSemiSSion reDuction (baSe 1990)

spEciFic co2 Emissions [G4- EN18](kG CO2/TOn CEmEnTITIOUS PRODUCT)

used as a substitute for clinker in ce-ment production, in Brazil.

In VCnA, at St. marys Cement, we have continued with our research into an innovative technology that uses marine algae to mitigate its CO2 emissions. The research is un-dertaken in a partnership with a bio-fuels company, Pond Biofuels, and consists of cultivating algae in bio-reactors through which the waste gases from the cement production process are passed. The accelerates the algae’s photosynthesis process and they feed on the CO2 and release oxygen. Besides the direct environ-mental benefit the algae can also be used to produce bio-fuels.

763 763

647 631654 638

1990 2011 2012 2013

649656

15%17%

15%


SOURCE 2011 2012 2013

Indirect GhG Emissions – Scope 2*

Electric power 1,246,048 1,332,633 1,686,733

Total (Scope 2) 1,246,048 1,332,633 1,686,733

* Includes the Scope 2 emissions of the units producing Cement, Aggregates, Concrete and Complementary Products.

SOURCE (UPSTREAm E DOWnSTREAm) 2011 2012 2013

Other Indirect GhG Emissions – Scope 3*

Transportation of inputs and final products 376,002 410,172 432,112

Total other indirect GhG emissions – Scope 3 376,002 410,172 432,112

Biogenic GhG emissions – Scope 3

Transportation of inputs and final products (bio-diesel) 18,478 20,161 12,606

Total biogenic GhG emissions – Scope 3 18,478 20,161 12,606

* GHGs included in other indirect emissions were: CO2, CH4 and N2O generated by the transportation of inputs and final products. Includes the Scope 3 emissions of the units producing Cement, Aggregates, Concrete and Complementary Products.

PROGRAm/InITIATIVEREDUCTIOn OF GhG EmISSIOnS

2011 2012 2013

Rate of reduction of CO2 emissions per ton of cementitious product (Scope 1) -15.2% -17.4% -15.0%

Total reduction of GhG emissions -15.2% -17.4% -15.0%

othEr GhG Emissions (metric t/CO2e) [G4-EN17]

rEduction oF GhG Emissions [G4-EN19]

SOURCE 2011 2012 2013

Indirect GhG Emissions - Scope 1*

Stationary combustion 9,478,117 9,346,289 10,237,380

mobile Sources – owned 170,401 165,350 156,277

Process 17,143,631 16,684,340 17,750,476

Total (Scope 1) 26,792,149 26,195,979 28,144,134

Biogenic GhG Emissions – Scope 1

Biomass fuels 885,783 568,298 639,606

* Following the acquisition of plants in Europe, Asia and Africa, the historical figures for these indicators were recalculated to include these units. Thus, the values reported in this report differ from those published in the Integrated Report 2012.Includes the Scope 1 emissions of the units producing Cement, Aggregates, Concrete and Complementary Products.

dirEct GhG Emissions (metric t/CO2e) [G4-EN15]

indirEct GhG Emissions (metric t/CO2e) [G4-EN16]


Less clinker in cement

Artificial pozzolan is a mineral raw material produced by the calcination of a clay with special characteristics. In the presence of water and calcium hydro-xide, pozzolan reacts in a manner similar to cement. Thus, it can be used as an additive in cement production, thus reducing the use of clinker. Votorantim Cimentos is a pioneer in the use of this material. The first plants to install furna-ces especially designed for the production of this type of pozzolan were those located in Porto Velho (RO), Paulista (PE) and nobres (mT). [EN6, EN7]

At the plant in Porto Velho (RO), the benefits of implementing the pozzolan have been evaluated. There were reductions of:

25% in electric power 10% in thermal energy 40% in water 43% in co2 emissions 25% in waste generated 6% in cost

There also led to an increase in the useful life of the limestone deposits which will result in social benefits for the region, due to the stimulation of the local economy and job training.

environmental impactS [g4-en30]The main environmental impact of our logistics activities is the emission of GhGs due to fossil fuel combustion. The energy consumed in our logistics

SIGnIFICAnT ImPACTS [G4-En30] 2011 2012 2013

quantitative data for logistics:

Energy consumption (GJ) 8,227,546 9,096,332 9,422,545

GhG emissions (metric tons CO2e) 435,660 482,003 499,299

quantitative data for internal transportation:

Energy consumption (GJ) 41,672

GhG emissions (metric tons CO2e) 2,139

activities increased by 4.5% com-pared to the previous year due to the increased cement production and consequent increased volumes of materials transported. [G4-DmA]


energy conSumption [g4-en5]Energy consumption is an impor-tant contributor to CO2 emissions. Votorantim Cimentos has taken a structured set of actions to increase the fuel efficiency of its operations and has invested in the diversification of its energy mix. [G4-DmA]

As a result of the consolidation of the new VCEAA operating units in our results, we had a small increase in electric power consumption in 2013. Despite this impact the level of electric power consumption still remains low due to our having in-vested in the best globally available technology in our capacity expan-sion projects, resulting in a signifi-cant reduction, of around 8%, in the specific consumption of electric power in our operating units.

Votorantim Cimentos recorded an average electric power intensity of 109.3 kWh/ton cementitious product , one of the lowest rates in the cement industry. This calculation included only the consumption of electric power within Votorantim Cimentos,

spEciFic consumption oF ElEctric powEr (kWh/mETRIC TOn CEmEnTITIOUS PRODUCT)

119109,9 108,8 109,3

1990 2011 2012 2013

reDuction in electric poWer conSumption (%)

whether produced externally or by the cement operations themselves (in small hydro-electric plants), ac-cording to the CSI guidelines.

The energy consumption outside the organization in 2013 considered only transportation and distribution activities, totaling 5,905,183 GJ.

Spain


TOTAL EnERGy COnSUmPTIOn (GJ) 2011 2012 2013

nOn-REnEWABLE EnERGy

Conventional fossil fuels 100,958,554 98,344,712 107,090,179

Alternative fossil fuels 3,125,795 3,731,315 3,786,744

Electric power 6,290,581 5,740,386 5,917,068

Total non-renewable energy 110,390,439 107,833,613 117,886,482

REnEWABLE EnERGy

Biomass (excluding energy sold) 8,215,301 6,446,903 7,054,304

Electric power 9,629,887 9,982,789 11,097,752

Total renewable energy 17,845,188 16,429,692 18,152,056

Total energy consumed (renewable + non-renewable) 128,235,627 124,263,305 136,038,539

* The conventional fossil fuels considered were: coal, coke, heavy fuel, diesel oil, gasoline, natural gas, lignite and liquefied petroleum gas (LPG). ** The alternative fossil fuels considered were: tires, used oil, contaminated soil, solvents, plastics, industrial waste and other fossil fuels from waste.

EnErGy consumption within thE orGanization (GJ) [G4-EN3]

nOn-REnEWABLE EnERGy 2013

Transportation and distribution 5,905,183

EnErGy consumption outsidE oF thE orGanization (downstrEam) (GJ) [G4-EN4]

reductionSInCE 1990, VOTORAnTIm CImEnTOS hAS AChIEVED A REDUCTIOn OF 8% In ThE EnERGy COnSUmPTIOn OF ITS CEmEnT PLAnTS In BRAzIL.


other emiSSionSAlthough we are in compliance with the local laws where we operate in relation to the emissions of nOx and SO2 we have not yet achieved our objectives. We expect that the projects to reduce these emissions, which were started in 2013, will begin to produce results in 2014.

spEciFic Emissions oF particulatE mattEr (G/ mETRIC TOn CLInkER)

160143

114

2011 2012 2013

spEciFic nox Emissions nOx (G/mETRIC TOn CLInkER)

2013

2,249

2011

1,567

2012

1,599

spEciFic sox EmissionsSOx (G/mETRIC TOn CLInkER)

674792

953

20122011 2013

PARTICULATE mATTER EmISSIOnS WERE REDUCED By 21% In 2013 COmPARED TO 2012.


Water management We have been working on new procedures to standardize and further enhance the management of water resources in all Votorantim Cimentos’ units. This was due to our expanding operations, especially in countries with a higher level water resource stress, and the increasing importance of the water issue on the global stage. In 2013, Votoran-tim Cimentos participated in the customization of the Global Water Tool, a water management tool for the cement sector developed by the CSI. The tool is freely available on the WBCSD website (www.wbcsdce-ment.org/GWTcement).

The monitoring of water resources continues to evolve in the individual management of each of our plants. Each plant has its own system of measurement and control and a program to reduce consump-tion, in line with the company’s environmental policy. In addition, Votorantim Cimentos has increased its level of participation in work-ing groups and discussions on the topic of water. It participates in the Technical Subcommittee for Water, of the Brazilian Business Council for Sustainable Development - CEDBS, and the Working Group on Water Resources, of the Cement Sustain-ability Initiative (CSI).

2012 2013

Cement* 41,415,553 55,689,684

Other businesses** 30,525,691 34,167,695,95

Total non-renewable materials 71,941,244 89,857,380

* For cement production the raw materials considered were: limestone fragments, gypsum fragments, clay, artificial plaster, limestone additive, slag, fly ash, pozzolan, contaminated soil, iron gravel and mill scale (CSI and MPA) and others (cement). The item “others (cement)” refers to materials that were not specified in the spreadsheet reporting of the environmental indicators. ** For the other businesses the materials considered were: concrete: cement, limestone frag-ments, sand, gravel and chemical additives; aggregates: limestone fragments, gypsum frag-ments and clay; and complementary products: limestone fragments, sand, chemical additives, cement, aggregates, filler and white cement.

bioDiverSity [g4-en11]In 2012 Votorantim Cimentos surveyed the surrounding areas of all its mines located in Brazil and north America, using the IBAT tool (Integrated Biodi-versity Assessment Tool), to verify if they were situated within 5 km of ar-eas of high biodiversity value. In 2013, the survey was expanded to include all the mining units in Europe, Asia and Africa. The results obtained showed that 72% of the units in Brazil had an overlap with areas of high biodiversity value within 5 km of its surroundings. The results for the Europe, Asia and Africa and north America regions were 35% and 40% respectively. Altogether, Votorantim Cimentos surveyed 119 mines and 62 of them, or 52%, had such overlaps. [G4-DmA]

matErials usEd (mETRIC TOnS) [G4-EN1]

materialS [g4-en1]Despite the improvement in the specific efficiency of our use of natural resources, in 2013 there was an increase in the total raw material consumption, due to the company’s significant rates of growth in the production of cement, concrete and aggregates. There is a trend towards the greater use of renewable raw materials and biomass. [G4-DmA]

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The IBAT Tool used is recognized internationally and has a databank of qualitative and geographical information on areas of high bio-diversity value. This enabled us to identify the overlaps between these areas and the location of our mines. The categories of areas of high biodi-versity value used by the tool are: legally protected areas (IUCn cat-egories); internationally recognized areas (World heritage, Ramsar and natura 2000); priority biodiversity areas (key Biodiversity Areas and Alliance for zero Extinction Sites); and regions of conservation value (Endemic Bird Areas, Biodiversity hotspots and high Biodiversity Wil-derness Areas).

The CSI recommends that operating units located in areas which overlap with areas of high biodiversity value prepare biodiversity management plans. For 2020, we have set a target to prepare biodiversity management plans for 100% of our units located in overlapping areas.

Each unit continues to develop initiatives to manage biodiversity

and has set up its own system of monitoring controls in line with the company’s environmental policy.

One of the projects under develop-ment, which encompasses biodi-versity issues, is technical coop-eration with environmental nGOs. For example, the company signed a cooperation agreement in 2011 with the Atlantic Forest Biosphere Reserve and the Brazilian Society of Speleology. For more information on this agreement please see: www.cavernas.org.br/cooperacaotecnica

We have a number of ongoing proj-ects of a collaborative nature. One good example is the Guide to Good Environmental Practices in mining. The objective was to encourage the implementation of good environ-mental practices in the limestone mining life-cycle in order to promote and share positive and/or mitigating actions on environmental issues. The application of best practices in mining in karst areas (where the erosion of limestone has led to the formation of caves) enabled us to construct a new model for the sus-

IDEnTIFICATIOn OF AREAS FOR BIODIVERSITy mAnAGEmEnT PLAnS 2012 2013

Total number of operations (mines) 81 119

mining operations located in areas of high biodiversity value (58%) 47 (52%) 62*

Percentage of units which have a BmP in place (4.26%) 2 (6.5%) 4

* of which VCBR 36, VCNA 14, VCEAA 12

tainable development of such areas and promote it as a commitment by all participants in the production chain and in local communities. We also continued to permit the use of the Xambioá Cave, located on our property near the unit of the same name, as a caving school for local caving groups.

Another ongoing project is the “Sur-vey of Environmental Assets in VC’s Areas”. This project was initiated in 2013, by our unit in Ribeirão Grande (SP), and will be completed in 2014. This is a research project to iden-tify and classify the environmental and social issues in the areas where Votorantim Cimentos has operating units. Based on the results, measures will be proposed for their conserva-tion and sustainable use, and a model for a Sustainable Land management Plan for mining will be developed to be applied to the company’s proper-ties in the Atlantic Forest biome. A second pilot study of this type will be carried out at our unit in Laranjeiras (SE), and is planned to be completed in 2015. [G4-En13, G4-En27, G4-DmA]

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Closure plans In 2013, we prepared 13 closure plans for operating units in Brazil, including: cement plants (Salto de Pirapora, Pinheiro machado, Laranjeiras, nobres, Santa helena, Corumbá, Porto Velho, Vidal Ramos, Xambioá, Cuiabá e Ribeirão Grande); lime-stone mine (Itapeva); and an aggregates plant (Araçariguama).

As from 2013, the preparation of plans for closures, recovery or rehabilitation of areas has followed the CSI guidelines on this subject. So far, in Brazil, we have prepared rehabilitation plans for 28 of our 50 mines (for cement and aggregates), a rate of 56%. For the Europe, Asia and Africa region we have rehabilita-tion plans for 31 of the 34 mines (for cement), a rate of 91%. Fi-nally, of the 35 mines (for cement) in the north America region, 34 have a rehabilitation plan, a rate of 97%.

Although the corporate environmental area consolidates this information, each unit is responsible for preparing the plan and ensuring its implementation. As part of its strategy the company will undertake a review of these closure plans every five to ten years in order to update the programs, action plans and costs. Among the main advantages of this method are the amortization of closure costs and the mitigation of liabilities.

Our goal is to have prepared plans for closure and rehabilitation for 100% of the cement plants by 2015.

PLAnS FOR mInE CLOSURES/RECOVERy OF AREAS 2012 2013

Total number of operations that have plans for closure/recovery of area (49%) 40 (78%) 93

Value of the total financial provision for the closure of operations (R$) 75,700,000 194,757,886


WaSte management One of our most important ongoing initiatives is the Sustainable Enge-mix Program. Initiated in 2008, this program has enabled our Engemix subsidiary to reuse a significant proportion of the waste generated in its concrete manufacturing process. The program’s goal is to reduce the volume of waste to landfill from con-crete manufacture. This was achieved by developing a method of using additives to provide better control of the hydration of concrete and en-able its reuse before it hardens and becomes waste. A further measure was the use of sustainable aggregate. This is produced by equipment which crushes leftover hardened concrete into aggregates, which in turn are used as a raw material for the produc-tion of fresh concrete.

In 2012, the use of additives reduced the volume of waste by about 35%, generating annual savings of ap-proximately R$ 3 million. In 2013, the reduction increased to 63%, representing savings of R$ 5.8 mil-lion. In addition there were other gains, for example, in the concrete truck washing process. Less water was used to remove waste from the interior of the trucks, and also less fuel, since the vehicle’s engine must remain on during the cleaning pro-cess. Lower fuel consumption also resulted in lower CO2 emissions.

The reuse of waste in the production process, in 2012, amounted to 0.66% of the total volume of concrete produced. In 2013, the percentage of waste reused increased to 0.81%.

in 2008, engemix established a program to reuse the waste materials from concrete production

Engemix concrete mixer truck. Engemix is responsible for Votorantim Cimentos’ concrete production in Brazil.


management SyStemVotorantim Cimentos’ management system aims to contribute to the success of the company’s customers through operational excellence. It comprises a set of practices, pro-cesses, tools and indicators that pro-vide guidance to operating, business and support areas on day-to-day activities. The focus is on continuous improvement, problem solving and the achievement of short, medium and long-term targets.

reSearch & Development anD innovationIn 2013, Votorantim Cimentos’ R & D area focused mainly on develop-ing more sustainable products and services. A new type of cement was developed, produced with the addi-tion of manganese slag, which is not a conventional cementitious mate-rial. It was launched in the South-east Brazilian market in 2013. The use of this raw material resulted in a cement with a high level of durability and a lower level of CO2 emissions.

A further cementitious material based on non-traditional inputs is being developed, but still undergo-ing laboratory trials. It is a type of artificial pozzolan, whose main con-stituent is siliceous limestone, which is a waste product generated in the production of aggregates (for more information please see the box entitled Less clinker in cement on page 57).

In the case of concrete, it is worth highlighting the trend to producing “green” and more technically efficient types of concrete, by optimizing mix-tures, reducing cement consumption

and using additives such as rice husk ash and recycled aggregates. We are in the final stage of studies that will enable us to produce aggregates from the recycling of waste concrete.

In 2013, we launched the micro-concrete product, in a partnership between Engemix and Tubular Track, a South African manufacturer of railway tracks. The product is a mixture of sand, water and cement that has high levels of strength and durability. It performs better than the traditional wooden sleepers and is considered innovative because of its industrial pumping system which uses tubular netted polyethylene bags to mold the tracks. We expect that micro-concrete will generate a return that is 40% higher than that for standard concrete.

In addition, improvements in the compositions of VC’s mortar prod-ucts have led to a reduction of its CO2 emissions by up to 47%. These improvements were due primarily to research on the impacts of the different constituents on the perfor-mance of the final product.

Strategy for social activities In 2013, the Social Responsibility area reviewed its social activities, considering: the importance of the operating unit, the impacts of our business activities on the region where the unit was located and the impacts of the local community on our business. By means of this process, and following a diagnosis of social issues, we selected 32 locations as priori-ties for medium and long-term social action plans.


relationS With StakeholDerS are guiDeD by Strategy

in 2013, r$ 12.4 million was invested in 62 social projects in the areas of culture, jobs and income, education, sport and the strengthening of public administration.

Votorantim Cimentos considers strong ties and effective communi-cation with all its stakeholders to be essential. The main stakeholder groups are: customers, suppliers, shareholders, investors, employees and the communities where the company’s plants and units are located. In the following sections we will describe our relations with each of these main stakeholder groups.

vc anD local communitieS [g4-So1]With the support of the Votorantim Institute, we have developed a series of projects to encourage the devel-opment of the communities where we operate. By means of these projects we seek to strengthen social protagonists in the search for alter-natives which improve the commu-nity’s quality of life, and strengthen social transformation. [G4-DmA]

In 2013, Votorantim Cimentos invested R$ 12.4 million in 62 social projects related to culture, promo-tion of employment and income, education, sport, and the strength-ening of public administration, among other initiatives. In addition, for the units producing concrete, aggregates and complementary products we expanded our social responsibility strategy, and for our cement plants we strengthened our governance of social activities.

We contributed to the improvement of public administration at four lo-cations, by offering expert technical support and training to the munici-palities to assist them in preparing projects for public administration modernization (tax, administra-tive, education and health), and in preparing/revising the municipal Sanitation Plan (for more information please see the box inset below).

In 2013, Votorantim Cimentos established engagement programs, for community relations and local development, in 27 locations, repre-senting about 15% of all its opera-tions in Brazil.

The operating units and projects were prioritized based on the social characteristics of their localities and the findings of a pilot project to as-sess the social risks. The operating units, in addition to their local teams, have the support of corporate and regional social responsibility teams and the Votorantim Institute.

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Student in the industrial maintenance technical training program (Evoluir Program).


Public administration support program

Since 2012, Votorantim Cimentos has supported municipali-ties in the development of projects to modernize their admin-istration and reduce their infrastructure deficits, in partner-ship with the Votorantim Institute and the national Bank for Economic and Social Development (BnDES). To participate in this program, municipalities must have less than 50 thou-sand inhabitants and the presence of a Votorantim operating unit. Expert consultants are made available to the municipal-ities to analyze the possibilities for improvements in adminis-trative processes and to develop plans for basic and structur-al sectors. As a result, the first municipality that participated, Cantagalo in the state of Rio de Janeiro, was able to secure financing in an amount of R$ 14.9 million from the national health Foundation (Funasa) to carry out a project for sewage collection and treatment in early 2014. The other cities with ongoing projects under the program are Primavera, in Pará, Edealina, in Goiás, and Xambioá, in Tocantins.

We would like to highlight the following initiatives:

Education – improving the qual-ity of education through projects that complement and strengthen the role of the school and school governance.

Culture – democratizing the access to culture by supporting projects that increase the access of young people to all types of cultural or artistic production - visual arts, performing arts, film and video, literature, music and heritage.

Sport – educational training of young people through sports activities of all types, strengthening leadership skills and teamwork, as well as valuing school and family.

Work – providing access and care-ful placement of young people in the labor market, through support for their professional training and the establishment of connections between their interests and the market opportunities.

Ensuring the rights of children and adolescents – support for projects that improve the quality of life of children and adolescents in vulnerable situations and strength-ening of administrative agencies in the area (Councils and Funds).

Community engagement/com-munity development – promoting the development of communities through a participatory process aiming to increase social capital, stimulate economic dynamism and encourage the sustainable use of lo-cal natural resources.

Training of NGOs: – the program aims to improve the management of the social sector based on sus-

tainability concepts and organized in the following stages: analysis, distance and classroom training modules, social coaching and a network of continuous learning by the sharing of experience.

ReDes (Networks) – this pro-gram is a partnership between the Votorantim Institute and the BnDES and aims to foster productive chains and professional training. For a pe-riod of five years, from 2011 to 2015, it will contribute to the promotion of inclusive business in 12 locations.

We consider these actions to be es-sential to the future of our operations, since through them we can generate income for the community, stimulate the local economy, improve public infrastructure, train local workers and contribute to the development of public policies by organizing forums to enable citizens to interact with the local government authorities.

community council

Among our various engagement projects, one of the highlights is the Community Council program. We support these councils which facilitate ongoing interaction with the com-munity through contacts with local leaders, business representatives, local government and opinion leaders. The aims of the Council are to seek solutions for local development and social entrepreneurship and to encourage the development of programs that focus on increasing the quality of life of the local community. Working on a consensus basis, the council prepares an agenda for the promotion of community development and proposes initiatives in priority areas such as education, culture and entrepreneurship.

We have invested in the establishment of 13 Community Councils in Brazil, in the munici-palities of: Xambioá (TO), Laranjeiras (SE), Cuiabá (mT), Sobradinho (DF), Itaú de minas (mG), Cantagalo (RJ), Rio Branco do Sul (PR), Vidal Ramos (SC), Imbituba (SC), Salto de Pirapora (SP), São Luis (mA), Sobral (CE) and Jaboatão dos Guararapes (PE).

The methodology aims to improve the dialogue with the various stakeholders involved in the company’s activities (such as consumers, suppliers, employees, legislators, media, financial institutions, non-governmental organizations, international agreements and competitors) and to encourage local sustainable development by aligning the perspectives of those inside and outside the company in order to take advantage of opportunities in decision-making.

After two years of practical experience, the initiative has led to a greater level of approxima-tion between the company and its stakeholders. This has made it possible to build a body of shared knowledge and has strengthened relations, thus creating value for all concerned.

The engagement process is managed by the operating unit in the region and the initiatives are carried out by the unit’s employees. In order to be prepared to carry out and disseminate the methodology in its various aspects, employees go through an extensive training program.

“The Muribeca Community Council for Integration is the result of bold management stroke by Votorantim, which has enhanced the relations between the company and us in the community. Developing the community and enabling it to learn about itself. As for the program, it expresses the commitment and contribution of Votorantim to the development of our community, after all, Vo-torantim motivated, trained and, with a sense of vision, included young people from the community in its workforce. People that before were forgotten, now are chosen! I even made up a catchphrase: “Votorantim and integration, integrating lives with passion”. Elaine Maciel (Member of the Commu-nity Council - Jaboatão Guararapes - Muribeca)

69 intEGratEd rEport 2013


InVESTmEnTS In InFRASTRUCTURE

AmOUnTS InVESTED (R$)nUmBER OF

BEnEFICIARIES DURATIOn OF

PROJECT

Vidal Ramos (SC) highway 31,896,697,19 more than 5,000 Three years

(until July 2014)

Cuiabá (mT) highway 7,946,418,84 more than 5,000 1 year and 8 months

training of the local WorkforceWe have developed three programs for the professional training of young people in the communities where we operate:

Future in Our Hands program, trains professionals for the civil construction industry, particularly for new plants built by Votorantim Cimentos.

Evolve program, provides technical training in industrial maintenance (mechanical, electri-cal and mining) for low-income young people. It has been developed in partnership with the national Industrial Apprenticeship Service (SEnAI) and the Federal Center of Technological Education (Cefet), and provides training and support for young people, helping them to gain entry into the labor market, either in Votorantim or in other companies. In 2013, we trained 267 young people in 12 municipalities.

VC Work Preparation program, provides courses on professional training, citizenship and informa-tion on the labor market to low-in-come young people in the communi-ties where the company operates. In 2013 the program was implemented in the municipalities of Jaboatão Guararapes (PE), Camaçari (BA), Seropédica (RJ) and São Paulo (SP). In each case the initiative was pre-ceded by a survey of the local labor market and the company’s needs. The program received the Votoran-tim Group “Talent in Sustainabil-

ity Award” in 2013, in the category “company”, for its impact on social mobilization and services provided to communities with high rates of crime and social vulnerability.

Support for infraStructure [g4-ec7]In 2013, Votorantim Cimentos devel-oped two projects with a focus on investment in infrastructure and ser-vices: highways - Vidal Ramos (SC) and highways - Cuiabá (mT). Both initiatives were aimed at reducing the volume of truck traffic on urban roads, contributing to improved safety indicators and the quality of life of the communities surrounding the company’s operating units. The high volume of production of the Vidal Ramos (SC) plant, which went into operation in July 2011, impacted various local productive sectors. The main impact on the community came from the company’s logistics operations, particularly on the local highways, which had previously only been used for local traffic. [G4-DmA]

To address these issues, Votorantim Cimentos developed and set up a Committee for Road Safety, com-posed of employees, representatives of the community, truck drivers, the State highway Police and company employees from the unit’s social responsibility and logistic areas. The committee meets monthly and discusses actions for improvements in the practices of the transport companies with the aim of improving road safety in the region and the rela-tions between the community and truck drivers.

The focus of the company’s action was to award a prize for the driver of the month based on an analysis and installation of tracking devices in the vehicles. Other initiatives were making visits to transport compa-nies and conducting the program “how Am I Driving?” with drivers of outsourced vehicles. Based on the data reported by the transport companies’ owners and the truck drivers, these actions resulted in: a 50% reduction in the number of traffic accidents in the area of the Vidal Ramos unit, in comparison to 2012; a decrease in the number of complaints about the company’s drivers; and improvements in the transport services provided by third-party suppliers.

In 2013, the road safety committee also made visits to the community to listen to their demands and un-derstand the impact of the actions taken, especially in relation to loca-tions which had a higher volume of truck traffic. [G4-DmA]

Our plant in Cuiabá was built in a region without direct access to state highways or paved roads. With the start of operations in no-vember 2012, a stretch of highway was built to connect the unit to the mT-010 highway in order to meet the company’s logistics needs. The construction of this stretch of high-way will contribute to the region’s development with the increase in demand for specific services.

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Jovens integrantes do Programa Evoluir, de formação técnica.

impact

in 2013, we developed 20 engagement plans, which enabled us to manage the impacts of our operations on a number of municipalities

StakeholDerS engagementIn 2013, Votorantim Cimentos developed 20 engagement plans with stakeholders, contributing to the management of the impacts of the company’s operations on relations with stakeholders in the municipalities of Cantagalo (RJ), Corumbá (mS), Laranjeiras (SE), Salto de Pirapora (SP), Votoran-tim (SP), Sobradinho (DF), Sobral (CE), Xambioá (TO), São Paulo and Campinas (SP).

A good example of the results of these plans, was the “Planting knowledge” program, developed by our unit in Salto de Pirapora based its stakeholder engagement plan. The project consisted of an envi-ronmental education program for children attending a public elemen-tary school in Salto de Pirapora. Once a month groups of children were taken on a guided tour of the plant. Each visit consisted of about 40 children accompanied by school teachers and directors.

During the visit the children played games related to environmental conservation and participated in an outdoor activity on recycling. The visit included a tour of the whole plant including both cement production and mining activities. The children also participated in a drawing contest on the theme of the environment. At a later date, the company’s employees visited the school to present a prize to the author of the winning drawing.

vc anD cuStomerSCustomer focus is one of VC’s strategic drivers (for more informa-tion please see the section on Strategy on page 25). Votorantim Cimentos serves on average 30 thousand customers across Brazil, ranging from large construction companies to small building materials stores. The company has developed and implemented strategies such that all companies receive an excellent level of service according to their individual needs.

One of the 13 Community Councils – a way to bring the community and VC together


cuStomer SatiSfaction SurveyS [g4-pr5]In 2013, Votorantim Cimentos car-ried out a satisfaction survey with retail customers, which currently account for approximately 60% of our sales in Brazil. In this survey we analyzed the degree of customer satisfaction in relation to products (cement and mortar), sales sup-port teams, marketing activities and the logistics operations. The results showed that the company had a very high level of customer satisfaction (86%), which was above the level of the competition. This result reflected mainly the underly-ing attributes of product quality and brand strength and tradition.

In 2014, a new research methodology will be adopted in order to measure the level of recommendation for Votorantim Cimentos, identifying the brand’s critics and supporters. The re-search will be undertaken initially for the do-it-yourself market segment, for cement, mortar and lime products, and then will be expanded, in 2015, to the real estate and infrastructure seg-ments. [G4-DmA]

branD anD reputationAs a result of the restructuring of the company’s governance model, the Corporate Communications area now has global responsibility for the management of the corpo-rate brand. Its mission is to create a competitive advantage by estab-lishing a reputation platform that broadens the scope of dialogue, while maintaining consistency, in the company’s relations with its stakeholders. The initial goals of the new approach are to extend its communication activities to the 14 countries where the company oper-ates and to establish an integrated communication strategy consist-ing of policies, procedures, internal

and external communication action plans, crisis management and brand management.

Following this, the challenges for next year will be the definition of the company’s market positioning and global brand architecture, in order to better reflect the current business strategy, and the develop-ment of reputation indicators to monitor corporate image.

vc anD government [g4-So6]In 2013, Votorantim Industrial’s area for Government Relations became more focused on the business needs and interactions of each Group com-pany. In partnership with the Legal Department, Votorantim Cimentos set up the Advocacy Work-group, a multi-disciplinary group of employees that aimed to identify and address is-sues that had the potential to impact the business environment and that required coordination with govern-ment entities.[G4-DmA]

Our relations with government enti-ties, at all levels, are strictly techni-cal and restricted to strategic and/or business issues. On a day-to-day basis we monitor legislative actions, congressional committees and ongoing projects for new legislation that are relevant to our industrial sectors or business activities.

In addition, we identify the vari-ous instances of government and their agencies and entities that relate to the company’s projects and initiatives. Besides this, we are in constant contact with the state and municipal governments in the regions where we operate, seeking to participate in discussions about public policies and to support the development of local communities. We also participate in forums at various levels of government, such

the results of a customer satisfaction survey on our products, after-sales service, marketing and logistics in brazil showed that 86% were satisfied.

One of the important strategic mea-sures taken to accomplish this goal is the Galileo Project where, by sales excellence, the company aims to increase customer satisfaction in all of its business segments (cement, concrete, aggregates and comple-mentary products). These actions are intended to differentiate the company from the competition by having the customer at the center. This was the origin of the name of the project, since it was the Italian scientist Galileo Galilei who first developed the theory that the sun is the center of our universe.

As part of this project, the company has unified its sales teams, which had previously been separated by product lines. Following this restructuring, customers no longer need to deal with different salesmen to purchase a number of different products. Based on this centralized structure for the sales of all prod-ucts, the sales teams are now divid-ed according to market segments, such as retail, building materials stores, real estate construction and infrastructure projects. This model has already been implemented in the South region. We plan to extend it to the Southeast, northeast and Central-north regions in 2014.

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as ministries, secretariats and other public bodies, to discuss and to pro-pose requests and regulations.

We have prepared a manual for Con-duct in Electoral Processes to guide our relations with candidates for public offices and to ensure such re-lations are institutionally and legally correct. This manual provides sup-port information and recommenda-tions that serve as a reference for our corporate conduct during electoral processes. The manual is updated

ORGAnIzATIOn TOPIC PERSOn RESPOnSIBLE

ABCP – Brazilian Portland Cement Association

Sector discussions on the environment, climate change and energy marcelo Chamma

SNIC – national Cement Industry Association

Sector discussions on the environment, climate change and energy marcelo Chamma

CSI – Cement Sustainability Initiative Cement industry initiative to accelerate progress towards global sustainable development Walter Dissinger

SBE/RBMA – Brazilian Speleological Society and the Atlantic Forest Biosphere Reserve

Partnership to develop standards for the conservation of ecosystems in karst areas and in the Atlantic Rainforest

Edvaldo Rabelo

WBCSD – World Business Council for Sustainable Development

Business initiative which promotes global sustainable development Walter Dissinger

DRRCC – Durham Region Roundtable on Climate Change

Initiative on climate change in partnership with government martin Vroegh

Portland Cement Association & Cement Association of Canada

Cement industry discussions and positioning on climate change marty Fallon

OSSGA – Ontario Stone, Sand & Gravel Association

Aggregates sector discussions and positioning on sustainability, in Ontario John moroz

RMCAO – Ready mixed Concrete Association Of Ontario

Concrete sector discussions and positioning on sustainability, in Ontario John Vanderpas

ECRA – European Cement Research Academy

Strategy for reduction of CO2 emissions and innovation Edvaldo Rabelo

IBRAM – Instituto Brasileiro de mineração

mining sector discussions and positioning on sustainability Edvaldo Rabelo

periodically (it has been updated for the coming 2014 elections), to ensure it is in accordance with the laws and criteria established by the government for each election. It is distributed to all employees who have management responsibility. In addition, we provide training for our employees who act as our points of contact with government entities.

With specific regard to electoral donations, we have established a Corporate Policy for Electoral

participation in Forums and associations

votorantim cimentos participates in a number of national and international forums on many different topics.

Donations, which supplements the manual of Conduct for Electoral Processes and reinforces the orga-nization’s governance and degree of participation in these processes. All donations are made in accordance with prevailing legislation. Our dona-tions in prior elections were regis-tered at the Supreme Electoral Court (TSE). This policy is available on our website at: (www.votorantim.com).

In 2013, we made no political contri-butions of any kind.


vc anD SupplierS[g4-12, g4-hr5, g4-hr6]We seek to prioritize long-term partnerships with our suppliers and contract companies that share this perspective. A consequence of this perspective of long-term relations means that we must look carefully at the issues related to these potential partners that could bring risks to our reputation and our business. [G4-DmA] One of our initiatives to achieve this was the launching, in 2013, of the Local Suppliers Program, with pilot operations in Xambioá (TO) and Sobral (CE). The program, which will continue in 2014, aimed to increase the financial value of trans-actions with companies located in the region of influence of our plants, thus contributing to the develop-ment of the surrounding communi-ties. [G4-DmA]

We revised management proce-dures and implemented a process for the approval of critical sup-pliers, including those who work continually inside our facilities. These suppliers are more significant in financial terms and also have a larger capacity to impact our activi-ties. We have defined five groups of indicators: health, safety and envi-ronment; quality of services; quality of the service contract; people management; and operational infrastructure. We have assigned a percentage weighting to each group of indicators, so that the final evaluation score reflects these themes. The goal is to work only with suppliers that achieve a score higher than 70%. For example, in the case of health, safety and envi-ronment, an important factor (20%) in the composition of the score, it is mandatory that the supplier com-ply with Votorantim Cimentos’ rules on these aspects, which go beyond the legal requirements.

During 2013, this evaluation process showed that 82% of our suppliers met the criteria considered to be satisfactory. Based on our commit-ment to the development of our suppliers, those cases where perfor-mance was lower than that required were addressed by the managers of these contracts. With the support of the purchasing department, the performance of these suppliers was analyzed and action plans were pre-pared to remediate the shortfalls. These actions resulted in closer rela-tions with our suppliers, and also improved the integration between the operating units and our corpo-rate center, to pursue a common goal. Already, in early 2014, a reas-sessment of the same base of critical suppliers indicated that 95% had now met the approval criteria.

This methodology has been dissemi-nated throughout the company. To date it has been implemented in 89% of the manufacturing units, specifi-cally in relation to the engagement and training of supplier manage-ment teams, and the measurement and monitoring of indicators. In addition, we continue to work with standard contracts that include clauses on compliance with envi-ronmental, labor and human rights questions, including prohibitions on the use of child labor or forced or compulsory labor. Our systems have an automatic trigger to block companies from being registered in our approved list of suppliers if they have been “blacklisted” by the minis-try of Labor or IBAmA.

The monitoring of issues related to the occurrence of child or forced or compulsory labor is carried out ac-cording to the Code of Conduct and its related instruments, in addition to the operational control audits. The ombudsman is the channel

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Supplier approval [g4-en32]In 2013, all of the 28 new suppliers, whose services inherently involved environmental issues, were selected after having complied with social and environmental criteria. [G4-DmA] The environmental approval process is based on the use of a supplier analysis tool and the presentation of required documentation including: environmental permits; registration in the IBAmA federal technical register; and a report by SERASA attesting to environmental conformity. Bases on this analysis and documentation, the supplier approval area informs those responsible for assessing the risks identified, thus approving or not the supplier to participate in tenders. [G4-DmA]

approval process – step by stepConsists of three steps:

1 At the opening of the tender, the supplier is informed about the documents required for the analysis. The required items are determined according to a matrix and vary according to the type of service/goods. The analysis is performed internally by the Sup-plier management team using an in-house tool.

2 The approval is based on an analysis of the documentation requested from the supplier in ac-cordance with the approval matrix,

which was developed in a joint project of the purchasing, legal, environmental, health and safety areas. At this stage the potential risks are identified including: finan-cial, tax, labor, violations of human rights, among other risks. Some of the specific documents required are: certificates attesting to the collection of InSS and FGTS contri-butions and copies of the lists issued regularly by the ministry of Labor and Employment.

3 Suppliers must renew their reg-istration annually and are also moni-tored monthly. Additionally, during the provision of the services, the contract managers at the units carry out quarterly performance evalua-tions, which include the control of occupational safety aspects and the delivery of labor-related documents.

local suppliers [g4-ec9]In 2013, 54.72% of total supplier expenditure was allocated to lo-cal suppliers, that is, individuals or companies based in the same municipality or region as the operat-ing unit. Purchases of up to one thousand Reais are paid directly by the operating units. In the case of higher values, negotiations are conducted by the central purchas-ing department. [G4-DmA]

The purchasing department is responsible for the supplier selec-tion process and has developed, in partnership with the Votorantim Institute, a program to identify and develop local suppliers. In 2013, Votorantim Cimentos increased its proportion of expenditure with local suppliers to 54.72%, compared to 48.45% in 2012.

vc and trade unions [g4-11]VC respects the employees’ rights to free association with trade

unions, and has affirmed this in its Code of Conduct. We maintain close relations and open dialogue with the unions that represent the em-ployees in our industry sector. Col-lective negotiations always include the presence of representatives of these unions, and the results are dis-closed to our employees through our internal communication vehicles.

Although not a common practice, the company would not be opposed to considering the participation of employees in the negotiating rounds, if it were requested by the union.

On the days of the union assembly meetings to vote on the collective agreements, the company provides employees with transportation to the location of the meeting, releasing them from work early, if necessary.

In 2013, we received no warnings or sanctions of any kind with regard to the processes of association and col-lective bargaining from the relevant supervisory bodies.

Votorantim Cimentos has no opera-tions in which employees’ rights to exercise freedom of association may be at risk. [G4-hR4, G4-DmA]

for reporting events related to the subject, in relation to all operations whether direct, indirect or involving the Group’s suppliers.

In 2013, no situations with a risk of transactions or suppliers involving child, forced or compulsory labor were identified. [G4-hR5 e G4-hR6]


To see the description of the GRI indicators, please go to page 116.

General Standard diScloSureS

PaGe/reSPonSeexternal aSSurance

Strategy and analysis G4-1 Message from the president, page 2 no

organizational Profile

G4-3 Profile, page 4 no


G4-5 São Paulo, SP, Brazil. location of the organization’s headquartersProfile, page 4 no


G4-7 S.a. no

G4-8 Profile, pages 8 and 20 no


G4-10 Strategy and People, pages 4 and 40 Yes, page 15

G4-11 relations, page 75 no

G4-12 relations, page 74 Yes, page 15

G4-13 context, page 25 no

G4-14

Votorantim cimentos has adopted risk prevention measures for environmental, social, regulatory and financial aspects. For more information on the company’s risk management processes please see page 32

no

G4-15 Strategy, page 30 no

G4-16 additional information – Financial Statements, page 30 no

GRI lIst of contents

GENERAL STANDARD DISCLOSURES



General Standard diScloSureS

PaGe/reSPonSeexternal aSSurance

identified material aspects and boundaries

G4-17 additional information – Financial Statements, page 105 no

G4-18 construction of the materiality matrix, page 13 Yes, page 15


G4-20

the definition of the boundaries for material aspects took into account the operations in: Brazil (VcBr); north america (Vcna); and europe, asia and africa (Vceaa). all aspects listed in the materiality process were considered relevant. those aspects of particular interest to shareholders are indicated in the section on “construction of the materiality matrix”.

no

G4-21 construction of the materiality matrix, 89 no

G4-22 information is indicated in the tables where there were restatements. no

G4-23 in 2013 we began to include information on the new units in Vceaa resulting from the asset swap with cimpor. no

Stakeholder engagement





report profile

G4-28 about the report, inside front cover Yes, page 15

G4-29 2012 Yes, page 15

G4-30 annual Yes, page 15

G4-31 about the report, inside front cover no



Governance G4-34 Strategy, pages 29 and 31 no

ethics and integrity G4-56 Strategy, page 32 no



SpECIfIC STANDARD DISCLOSURES

Material aSPectS dMa and indicatorS PaGe/reSPonSe oMiSSion

external aSSurance

economic category

Economic performance

G4-DMA VcBr/Vcna/Vceaa/ Page 36 Yes, page 15

G4-ec1 VcBr/Vcna/Vceaa/ Pages 37 and 92 Yes, page 15

Market presence

G4-DMA VcBr/Vcna/Vceaa/ Page 75 n/a

oMiSSion currently unavailable. We have a practice of seeking to hire employees in the local labor market, because we have found that employee retention is higher and because it contributes to local development. However, because this indicator was only identified by the materiality process conducted in 2014, we are still developing the process for managing the necessary data, therefore, we do not have the information about the percentage of senior management members hired from local communities. We will report in the coming years.

G4-ec6 not responded n/a

oMiSSion currently unavailable.We have a practice of seeking to hire employees in the local labor market, because we have found that employee retention is higher and because it contributes to local development. However, because this indicator was only identified by the materiality process conducted in 2014, we are still developing the process for managing the necessary data, therefore, we do not have the information about the percentage of senior management members hired from local communities. We will report in the coming years.

Indirect economic impacts

G4-DMA VcBr/ Page 70 no

G4-ec7 VcBr/ Page 70 no

Procurement Practices


G4-ec9 VcBr/ Page 75 no

environmental category

MaterialsG4-DMA VcBr/Vcna/Vceaa/ Page 61 Yes, page 15

G4-en1 VcBr/Vcna/Vceaa/ Pages 61 and 95 Yes, page 15

Energy



G4-en4 VcBr/Vcna/Vceaa/ Page 59 and 93 Yes, page 15

G4-en5 VcBr/Vcna/Vceaa/ Page 58 no

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external aSSurance

Water

G4-DMA not responded n/a

oMiSSion currently unavailable. With the expansion of our operations in europe, asia and africa (Vceaa) in 2013, we have initiated a survey of the areas of greatest water stress and consumption at our operating units. therefore, we do not have detailed information available for this cycle about the total water withdrawal by source. these results will be reported in the coming years.

G4-en8 not responded n/a

oMiSSion currently unavailable. With the expansion of our operations in europe, asia and africa (Vceaa) in 2013, we have initiated a survey of the areas of greatest water stress and consumption at our operating units. therefore, we do not have detailed information available for this cycle about the total water withdrawal by source. these results will be reported in the coming years.

Biodiversity



Emissions

G4-DMA VcBr/Vcna/Vceaa/ Pages 54 Yes, page 15

G4-en15 VcBr/Vcna/Vceaa/ Pages 53, 54 and 95 Yes, page 15

G4-en16 VcBr/Vcna/Vceaa/ Pages 53, 54, 56 and 95 Yes, page 15

G4-en17 VcBr/Vcna/Vceaa / Pages 53, 54, 56 and 93 Yes, page 15


G4-en19 VcBr/Vcna/Vceaa/ Pages 53, 56 and 96 Yes, page 15

G4-en21 VcBr/Vcna/Vceaa/ Page 94 Yes, page 15

Effluents and waste


oMiSSion currently unavailable. Votorantim cimentos is working on the integration and standardization of global information from its units in Brazil, north america, europe, asia and africa. therefore, it is not possible present the the data concerning the generation of waste by type and disposal method for this cycle. these data will be reported on the 2016 cycle.


oMiSSion currently unavailable. Votorantim cimentos is working on the integration and standardization of global information from its units in Brazil, north america, europe, asia and africa. therefore, it is not possible present the the data concerning the generation of waste by type and disposal method for this cycle. these data will be reported on the 2016 cycle.

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external aSSurance

Products and servicesG4-DMA VcBr/Vcna/ Page 62 Yes, page 15

G4-en27 VcBr/Vcna/ Pages 53, 62 and 100 Yes, page 15

ComplianceG4-DMA VcBr/Vcna/Vceaa/ Page 99 no

G4-en29 VcBr/Vcna/Vceaa/ Page 101 no

TransportG4-DMA VcBr/ Page 57 no

G4-en30 VcBr/ Pages 57 and 95 no

OverallG4-DMA VcBr/Vcna/Vceaa/ Page 52 no

G4-en31 VcBr/Vcna/Vceaa/ Pages 52 and 95 no

Supplier environmental assessment


G4-en32 VcBr/ Page 75 no

Environmental grievance mechanisms


oMiSSion currently unavailable. Votorantim cimentos registers the number of complaints and claims in its ombudsman area. However, the information related to these complaints and claims is consolidated and we had no breakdown into categories that allowed us to report this indicator for 2013. From the Vc 2015 report onwards the company will register the events by category.



Social category – labor practices and decent work

EmploymentG4-DMA VcBr/ Page 40 Yes, page 15

G4-lA1 VcBr/ Pages 40, 43 and 44 no

Occupational health and safety


G4-lA6 VcBr/Vcna/Vceaa/ Pages 52 and 97 Yes, page 15

Training and education


G4-lA9 VcBr/ Page 40 no

G4-lA11 VcBr/ Pages 43 and 44 no

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external aSSurance

Diversity and equal opportunity


G4-lA12 VcBr/ Pages 44, 45 and 93 no

oMiSSion currently unavailable. Votorantim cimentos is currently standardizing its global processes in order to obtain information on the number of employees with disabilities. For this reason it is not possible to calculate this indicator in the current reporting cycle. these data will be reported on the 2018 cycle.

Equal remuneration for women and men


oMiSSion not applicable. We do not manage salary by gender. Votorantim cimentos makes no differentiation in salaries between men and women. We describe and evaluate job positions,classifying them into salary groups according to the operational, technical, managerial and financial responsibilities, without any distinction or relation to the gender of the employee who holds, or will hold, the position.

G4-lA13 not responded n/a

oMiSSion not applicable. We do not manage salary by gender. Votorantim cimentos makes no differentiation in salaries between men and women. We describe and evaluate job positions, classifying them into salary groups according to the operational, technical, managerial and financial responsibilities, without any distinction or relation to the gender of the employee who holds, or will hold, the position.

Labor practices grievance mechanisms



G4-lA16 not responded n/a


Social category – human rights

Non-discriminationG4-DMA VcBr/Vcna/ Page 47 no

G4-HR3 VcBr/Vcna/ Pages 47 and 93 no

Freedom of association and collective bargaining

G4-DMA VcBr/Vcna/ Page 75 no

G4-HR4 VcBr/Vcna/ Page 75 no

Child laborG4-dMa VcBr/Vcna/ Page 74 no

G4-Hr5 VcBr/Vcna/ Page 74 no

Forced or compulsory labor

G4-dMa VcBr/Vcna/ Page 74 no

G4-Hr6 VcBr/Vcna/ Pages 74 and 75 no

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external aSSurance

Human rights grievance mechanisms

G4-dMa not responded n/a


G4-Hr12 not responded n/a


Social category – society

Local communitiesG4-dMa VcBr/ Page 66 Yes, page 15

G4-So1 VcBr/ Pages 66, 96 and 102 Yes, page 15

Anti-corruptionG4-dMa VcBr/Vcna/ Page 32 Yes, page 15

G4-So4 VcBr/Vcna/ Pages 32 and 33 no

Public policyG4-dMa VcBr/Vcna/ Page 72 no

G4-So6 VcBr/Vcna/ Page 72 no

Anti-competitive behavior

G4-dMa VcBr/Vcna/ Page 33 Yes, page 15

G4-So7 VcBr/Vcna/ Pages 32, 33 and 98 Yes, page 15

ComplianceG4-dMa VcBr/Vcna/ Page 33 Yes, page 15

G4-So8 VcBr/Vcna/ Pages 32 and 99 no

Supplier assessment for impacts on society


oMiSSion currently unavailable. We are studying the best way to provide the information and forward it to our suppliers for their review with respect to criteria for the impacts on society, considering that this indicator was not previously being measured. it has only recently been identified as material. these data will be reported on the 2020 cycle.

G4-So9 not responded n/a

oMiSSion currently unavailable. We are studying the best way to provide the information and forward it to our suppliers for their review with respect to criteria for the impacts on society, considering that this indicator was not previously being measured. it has only recently been identified as material. these data will be reported on the 2020 cycle.

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external aSSurance

Grievance mechanisms for impacts on society



G4-So11 not responded n/a


Social category – product responsibility

Product and service labeling

G4-dMa VcBr – cement / Page 72 no

G4-Pr5 VcBr – cement/ Page 72 no

Sector Supplement – mining and metals

Biodiversity MM2 VcBr/Vcna/Vceaa/ Pages 27 and 97 Yes, page 15

Local communities

MM7 not responded n/a

oMiSSion currently unavailable. Votorantim cimentos registers the number of complaints and claims rs in its ombudsman area. However, the information related to these complaints and claims is consolidated and we had no breakdown into categories that allowed us to report this indicator for 2013. From the Vc 2015 report onwards the company will register the events by category.

Closure planning MM10 VcBr/Vcna/Vceaa/ Pages 27 and 97 Yes, page 15

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AdditionAl informAtion


Ethics, transparency and integrity occupational health and safety Co2 emissions Anti-corruption practices, cartels and unfair com-

petition regulatory risks Supply chain management Contribution to local development Economic performance: economic value generated

and distributed Community relations Government relations Energy efficiency Alternative energy sources and alternative fuels Air emissions (Particulate matter, nox, Sox) management and reuse of construction waste, and

reverse logistics of cement bags Water consumption

Biodiversity preservation Customer relations and satisfaction management of business risks Policies, reviews, audits, licenses and certification

of systems fines and legal compliance Employment and labor relations training, capacity-building and employee

development respect for human rights in operations and

supply chain Partnerships and strategic alliances Alternative sources of raw materials and resources low carbon products Product life-cycle and social and environmental

impacts innovation, research and development Climate change mitigation and adaptation Sustainable concrete inclusive and sustainable construction mining life-cycle processes Water and effluent management

Certifications obtained and adaptation to interna-tional standards

internal engagement on sustainability Social dialogue and freedom of association indigenous people’s rights diversity and social inclusion Environmental product declaration

VErY HiGH dEGrEE of mAtEriAlitY HiGH dEGrEE of mAtEriAlitY mEdium dEGrEE of mAtEriAlitY loW dEGrEE of mAtEriAlitY

VC’s material issues

Correlation of material issues and Gri aspeCts [G4-21]

87 INTEGRATED REPORT 2013 – ADDITIONAL INFORMATION

VC Material issues Gri issues indiCators stakeholders

safe

ty health and safety (own employees and contractors)

la – occupational health and safety

G4-la5

employeesshareholders

G4-la6

G4-la7

G4-la8

ethi

cs a

nd C

ompl

ianc

e

ethics, transparency and integrity

General standard disclosures - ethics and integrity

G4-56employeesshareholderssociety

G4-57

G4-58

regulatory risks none none

anti-corruption practices; cartels and unfair competition

so – anti-corruption

G4-so3

employeessociety

G4-so4

G4-so5

so – anti-competitive Behavior G4-so7

Competitorsshareholderssociety

supply chain management (includes: evaluation and management of suppliers, auditing, etc.)

General standard disclosures – organizational Profile

G4-12 suppliers

en – supplier environmental assessment

G4-en32 employeessuppliersCustomerssocietyenvironment

G4-en33

la – supplier assessment for labor Practices G4-la15

employeessuppliersCustomerssociety

hr – supplier human rights assessment G4-hr11employeessuppliersCustomers

so – supplier assessment for impacts on society

G4-so9 employeessuppliersCustomersG4-so10



eco

-effi

cien

cy a

nd in

nova

tion

Water consumption

en – Water

G4-en8

environmentG4-en9

G4-en10

energy efficiency (alternative energy sources

en – energy

G4-en3

environmentCustomers

G4-en4

G4-en5

G4-en6

G4-en7

atmospheric emissions (PM, nox, sox)

en – emissions G4-en20 environment

societyG4-en21

en – transportation G4-en30environmentemployees

Co2 emissions en – emissions

G4-en15

environmentsociety

G4-en16

G4-en17

G4-en18

G4-en19

Management and reuse of construction waste, and reverse logistics of used cement bags

en – Materials G4-en1 environment

societysuppliersG4-en2

en – effluents and Waste G4-en23 environment

en – Products and services G4-en27 environment

CustomersG4-en28

Biodiversity preservation

en – Biodiversity

G4-en11

environmentG4-en12

G4-en13

G4-en14



Com

mun

ity

enga

gem

ent

Contribution to local development

eC – Market PresenceG4-eC5 employees

shareholderssocietyG4-eC6

eC – indirect economic impactsG4-eC7

societyG4-eC8

eC – Procurement Practices G4-eC9employeessuppliers

so – local CommunitiesG4-so1

societyG4-so2

stakeholder relations (government, customers and community)

General standard disclosures – stakeholder engagement

G4-24

employeesCustomerssupplierssociety Government

G4-25

G4-26

G4-27

en – environmental Grievance Mechanisms G4-en34societyenvironment

la – labor Practices Grievance Mechanisms G4-la16 employees

hr – human rights Grievance Mechanisms G4-hr12employeessuppliersCustomers

so – local Communities MM7 society

so – Public Policy G4-so6societyGovernment

so – Grievance Mechanisms for impacts on society

G4-so11 society

economic value generated and distributed

eC – economic Performance G4-eC1

employeessuppliersshareholdersGovernmentsociety

Customer relations and satisfaction

Pr – rotulagem de produtos e serviços G4-Pr5 Customers

indiCators Csi Gri 2011 2012 2013

eConoMiC PerForManCe

1. income (gross sales of products and service, other revenues and provision for credit)

[G4-EC1]* 11,269,100 12,190,637 15,197,222

2. inputs acquired from third parties -5,740,720 -5,009,488 -7,346,362

3. Gross value-added 5,528,380 7,181,149 7,850,860

4. net value-added produced 5,087,325 6,636,842 7,077,767

5. Value-added received in transfers 515,481 135,911 504,009

6. total value-added to distribute 5,602,806 6,772,753 7,581,776

7.distribution of value-added 5,602,806 6,772,753 7,581,776

* in thousands R$

net income by product (in thousands r$)

Cement 5,890,923 6,211,178 8,329,674

Concrete 1,880,745 2,099,121 2,280,468

aggregates 371,850 378,932 754,835

other 554,834 706,192 777,311

adjusted ebitda (consolidated) (in thousands r$) 2,776,770 3,071,924 3,516,695

sales volumes

38 million metric tons of cement 31 million metric tons of aggregates

12 million m3 of concrete 1.83 million metric tons of mortar

PeoPle

total number of own employees * G4-10

VCBr ** 8,161 9,265 9,392

interns, summer students and apprentices*** 385 494 528

VCna 3,146 3,128 3,552

VCeaa**** – 2,978

south america 306

* Includes VCBR (Votorantim Cimentos, Brazil), VCNA (Votorantim Cimentos, North America), VCEAA (Votorantim Cimentos, Europe, Asia and Africa) and South America (shareholdings held by Votorantim Cimentos). ** Salaried employees and trainees. *** VCBR. **** Includes China.

diversity* [G4-LA12]

Men – 87.4% 87.60%

Women – 12.5% 12.40%

Women in management positions – – 16.50%

* Employees of VCBR units registered in the SAP system (excluding interns and trainees)

performanCe


INDICATORS CSI GRI 2011 2012 2013

Discrimination cases [G4-HR3]

Complaints received by the ombudsman – cases of harassment and abuse of power

– – 273

Complaints considered valid – cases of harassment and abuse of power

63 104 93

ENvIRONmENTAl PERfORmANCE

Energy consumption within the organization (GJ) [G4-EN3]

Non-renewable energy

Conventional fossil fuels 100,958,554 98,344,712 108,090,179

low carbon fuels 3,125,795 3,731,315 3,786,744

Electric power 6,290,581 5,740,386 5,917,068

Heating 15,509 17,200 92,491

Total non-renewable energy 110,390,439 107,833,613 117,886,482

Renewable energy

Biomass (excluding energy sold) 8,215,301 6,446,903 7,054,304

Electric power 9,629,887 9,982,789 11,097,752

Total renewable energy 17,845,188 16,429,692 18,152,056

Total energy consumed (renewable + non-renewable) 128,235,627 124,263,305 136,038,539

* The conventional fossil fuels included: coal, coke, heavy fuel, diesel oil, gasoline, natural gas, lignite and liquefied petroleum gas (LPG). ** The low carbon fuels included: tires, used oil, contaminated soil, solvents, plastics, industrial waste and other fossil fuels from waste.

Energy consumption outside the organization (downstream ) (GJ) – non-renewable energy

[G4-EN4]

Transport and distribution – – 5,905,183

NOx, SOx and other significant air emissions* x

Total coverage rate v1** (KPI 1) % 60 65 65

Total coverage rate v2*** (KPI 1) % 4 48 62

Continuous monitoring rate (KPI 2) % 67 80 84

* Following the acquisition of plants in Europe, Asia and Africa, the historical figures for the indicators were recalculated to include these units. Thus, the values reported in this report differ from those published in the Integrated Report 2012. Between 2012 and 2013, Votorantim Cimentos invested in the retrofitting of filters, substituting electrostatic filters by bag filters. This change in technology significantly reduced the particulate material emissions. The impact of reduction measures for NOx emissions, such as the installation of exhaust gas abatement systems in the kilns that went into operation in 2012 and 2013, should be reflected in the values of the 2014 indicators. The main difficulty in reducing SO2 emissions, especially in the specific plants, is due to the presence of sulfur in the feedstock. There are ongoing projects and planned investments to reduce these emissions in the affected kilns. ** (V1) overall coverage rate percentage (%) of clinker produced with monitoring of all pollutants Dust, NOx, SO2, VOC, THC, Heavy metals (Hg, Cd, Tl, Sb, As, Cr, Co, Cu, Mn, Ni and V) and PCDD/F. ***(V2) coverage rate continuous measurement: percentage of clinker produced with continuous monitor-ing of main pollutants Dust, NOx and SO2.

Specific emissions (KPI 3 CSI) x

mP (Particulate matter) – g/t clinker 160 143 114

NOx (Nitrogen Oxides) – g/t clinker 1,567 1,599 2,249

SO2 (Sulfur Dioxide) – g/t clinker 674 792 953

vOC/THC (volatile organic compounds) – g/t clinker 13 11 19



PCdd/F (dioxins and Furans) – ng/t clinker 20 26 19

hg (Mercury) – mg/t clinker 10 11 17

hM1 (sum of Cadmium and thallium) – mg/t clinker 17 19 23

hM2 (sum of antimony, arsenic, lead, Chromium, Cobalt, Copper, Manganese, nickel and Vanadium) – mg/t clinker

6 787 513

absolute emissions (kPi 3 Csi) x [G4-EN21]

MP (Particulate Matter) – t/year 4,786 4,301 3,567

nox (nitrogen oxides) – t/year 46,929 47,951 70,596

so2 (sulfur dioxide) – t/year 20,180 23,759 29,921

VoC/thC (Volatile organic compounds) – t/year 400 339 590

PCdd/F (dioxins and Furans) – mg/year 586 789 596

hg (Mercury) – kg/year 297 341 538

hM1 (sum of Cadmium and thallium) – kg/year 520 566 717

hM2 (sum of antimony, arsenic, lead, Chromium, Cobalt, Copper, Manganese, nickel and Vanadium) – kg/year

178 23,607 16,099

Monitoring rate (kPi 4 Csi) x

MP (Particulate Matter) – % 100 100 100

nox (nitrogen oxides) – % 100 100 100

so2 (sulfur dioxide) – % 100 100 96

VoC/thC (Volatile organic compounds) – % 65 67 75

PCdd/F (dioxins and Furans) – % 66 77 74

hg (Mercury) –% 69 75 76

hM1 (sum of Cadmium and thallium) – % 69 75 78

hM2 (sum of antimony, arsenic, lead, Chromium, Cobalt, Copper, Manganese, nickel and Vanadium) – %

10 55 71

emission reductions x

nox – reduction compared to the base year – 2000 (%) 2 0 -41

so2 – reduction compared to the base year – 2000 (%) 31 19 3

MP – reduction compared to the base year – 2000 (%) 22 30 44

enVironMental inVestMents and enVironMental CoMPlianCe

environmental investments (r$) [G4-EN31]

Waste disposal, emissions treatment, and remediation costs *

77,409,786 31,826,306 48,132,668

Costs of environmental prevention and management ** 20,655,952 24,880,414 64,692,580

other environmental costs 12,808,230 2,770,920 17,487,837



total 110,603,968 59,477,640 130,313,086

*Includes treatment of air emissions, waste treatment, effluent treatment rehabilitation actions and closure plans. ** Includes environmental education, environmental management, preservation, reforestation and biodiversity and environmental insurance.

Provisions for site restoration (r$) – 75,700,000 194,757,886

significant impacts

Quantitative data for logistics: [G4-EN30]

energy consumption (GJ) 8,227,546 9,096,332 9,422,545

GhG emissions (tCo2e) 435,660 482,003 499,299

Quantitative data for employee transportation: [G4-EN30]

energy consumption (GJ) – – 41,672

GhG emissions (tCo2e) (Green house gases) – – 2,139

Materials used (metric tons) [G4-EN1]

Cement * – 41,415,553 55,689,684

other businesses ** – 30,525,691 34,167,696

total non-renewable materials – 71,941,244 89,857,380

direct GhG emissions (tCo2e) – scope 1* [G4-EN15]

stationary combustion 9,478,117 9,346,289 10,237,380

Mobile sources – owned 170,401 165,350 156,277

Process 17,143,631 16,684,340 17,750,476

total (scope 1) 26,792,149 26,195,979 28,144,134

Biogenic GhG emissions (tCo2e) – scope 1

Biomass fuels 885,783 568,298 639,606

* Scope 1 includes the GHG emissions for the units producing Aggregates, Concrete and Complementary Products.

energy indirect GhG emissions (tCo2e) – scope 2* [G4-EN16]

electric power 1,246,048 1,332,633 1,686,733

total (scope 2) 1,246,048 1,332,633 1,686,733

* Following the acquisition of plants in Europe, Asia and Africa, the historical figures for these indicators were recalculated to include these units. Thus, the values reported in this report differ from those published in the Integrated Report 2012. Scope 1 includes the GHG emissions for the units producing Aggregates, Concrete and Complementary Products.

other indirect GhG emissions (t Co2e) – scope 3* [G4-EN17]

transportation of inputs and final products 376,002 410,172 432,112

total other indirect GhG emissions – scope 3 376,002 410,172 432,112

Biogenic GhG emissions – scope 3 x

transportation of inputs and final products (bio-diesel) 18,478 20,161 12,606



total biogenic GhG emissions – scope 3 18,478 20,161 12,606

* GHGs included in other indirect emissions were: CO2 CH4 and N2O generated by the transportation of inputs and final products. Scope 3 includes the GHG emissions for the units producing Aggregates, Concrete and Complementary Products.

reduction in GhG emissions [G4-EN19]

reduction in Co2 emissions per ton of cementitious product (scope 1)

-15.2% -17.40% -15%

total reduction in GhG emissions -15.2% -17.40% -15%

CliMate ProteCtion

direct emissions x

absolute gross Co2 emissions (million metric tons Co2/ year) 26.7 26.1 28.1

absolute net Co2 emissions (million metric tons Co2/ year) 26.4 25.8 27.7

specific gross Co2 emissions (kg Co2/ton cementitious product)

654 638.0 656.0

specific net Co2 emissions (kg Co2/ton cementitious product)

647 631 649.0

reduction of specific net Co2 emissions relative to the base year – 1990 (%)

15.2 17.4 15.0

indirect emissions x

Co2 emissions from the generation of external energy (metric tons of Co2)

1,095,952 1,008,818 1,235,584

responsible use of fuels and raw materials x

specific heat consumption of clinker production 3,409 3,398 3,541

low carbon fuels rate (%) 8.5 7.2 6.4

Clinker/cement ratio (%) 76% 74% 76%

alternative raw materials rate (%) 7.3 7.7 7.2

Power consumption (specific) kwh/ t cement 109.9 108.8 109.3

local impacts on land communities x

Percentage (%) of sites with quarry rehabilitation plans in place

14% 49% 78%

Percentage (%) of sites with community engagement plans in place

[G4-SO1] 49% 62% 15%

Biodiversity kPis

number of quarries within, containing, or adjacent to areas designated for their high biodiversity value, as defined by Gri en11 (number and coverage)

x [G4-EN11] – 47 62

Percentage (%) of quarries with high biodiversity value where biodiversity management plans are actively implemented

– 4.26% 6.5%



total number of operations that have closure plans/recovery of areas

[G4-MM10] – 40 93

Percentage (%) of total units that were evaluated according to the criteria for the need for a BMP (Biodiversity Management Plan)

– 58% 52%

number of units which have a BMP in place [G4-MM2] – 2 4

health and saFety x [G4-LA6]

number of Fatalities of direct employees (on-site) 0 2 1

number of Fatalities of direct employees (off-site) 0 0 1

number of Fatalities of direct employees – total 0 2 2

number of fatalities (per 10 thousand direct employees) (%) 0 1.59 1.4

number of fatalities of indirect employees (on-site) 0 2 3

number of fatalities of indirect employees (off-site) 2 6 6

number of fatalities of indirect employees – total 2 8 9

number of fatalities of third parties* 2 5 8

number of lost time injuries (directly employed) 33 29 44

lost time injuries per 1 million man/hours (directly employed) 1.3 1.4 1.28

number of lost time injuries for indirect employees 26 16 35

lost time injuries per 1 million man/hours for indirect employees (on-site)

0.77 0.47 0.90

number of lost days - direct employees (calendar days) 3,335 2,927 3,195

number of lost days - indirect employees (calendar days) 888 515 1,458

* Third-parties: includes any person not categorized as directly or indirectly employed by Votorantim Cimentos. Normally this classification includes customers, visitors to company locations, and drivers or passengers who are involved in accidents off-site, with company or contrac-tor vehicles, but only if there was blame involved.



Additional Gri indicators

2012 2013

number of legal actions filed against the company in the year 1 0

Value of legal actions filed against the company in the year(r$) 5,600,000,000 -

number of legal actions paid by company in the year 0 -

Value paid in the year for legal actions against the company (r$) 0 -

number of administrative sanctions received in the year 1 -

Value of administrative sanctions received in the year (r$) 46,920 -

number of administrative sanctions paid in the year 0 -

Value of administrative sanctions paid in the year (r$) 0 -

number of taC's or tC's received in the year 0 -

Value of taC's or tC's received in the year (r$) 0 -

number of taC's or tC's paid in the year 0 -

Value paid in the year for taC's or tC's (r$) 0 -

total number 2 0

total Value (r$) 5,600,046,920 0

total number of leGal aCtions for anti-Competitive behavior, anti-trust, and monopoly praCtiCes and their outComes [G4-SO7]

7,633,303 97 INTEGRATED REPORT 2013 – ADDITIONAL INFORMATION

non-Conformities relatinG to labor/soCial seCurity matters [G4-SO8]

2012 2013

number of legal actions filed against the company in the year 890 1.472

Value of legal actions filed against the company in the year (r$) 30,185,709 310,544,783

number of legal actions paid by company in the year 324 245

Value paid in the year for legal actions against the company (r$) 7,633,302,65 6,206,181

number of administrative sanctions received in the year 38 191

Value of administrative sanctions received in the year (r$) 71,410 1,553,058

number of administrative sanctions paid in the year 7 65

Value of administrative sanctions paid in the year (r$) 15,471 192,430

number of taC's or tC's received in the year 0 2

Value of taC's or tC's received in the year (r$) 0 0

number of taC's or tC's paid in the year 0 0

Value paid in the year for taC's or tC's (r$) 0 0

2012 2013

number of legal actions filed against the company in the year 89 90

Value of legal actions filed against the company in the year (r$) 56,139,466 23,484,719

number of legal actions paid by company in the year 19 11

Value paid in the year for legal actions against the company (r$) 1,146,676 1,466,878

number of administrative sanctions received in the year 349 250

Value of administrative sanctions received in the year (r$) 863,417,625 331,296,015

number of administrative sanctions paid in the year 24 80

Value of administrative sanctions paid in the year (r$) 2,694,869 5,669,044

number of taC's or tC's received in the year 2 0

Value of taC's or tC's received in the year (r$) 0 0

number of taC's or tC's paid in the year 0 0

Value paid in the year for taC's or tC's (r$) 0 0

non-Conformities relatinG to tax matters [G4-SO8]

2013

number of cases resolved through dispute mechanisms

6 taCs (2 labor; 4 environmental)

number of Cases resolved [G4-SO8]


initiatiVes and aCtions iMPaCts

use of materials

in relation to the use of materials in the production process the highlights were: implementation of co-processing for fuel substitution in Vidal ramos ( tires and waste), nobres (pozzolan) and Pinheiro Machado (rice husks); initiatives for the decontamination, containment and reclassification of transformers (rio Branco, Corumba and sobradinho); analysis of environmental compliance of materials such as asbestos (itaú de Minas); and initiatives in environmental adaptation in sobradinho.

Vidal ramos: the plant consumed 6,140 metric tons of ground waste and 7,032 metric tons of tires in 2013.

nobres: the plant achieved a level of thermal substitution of 27.55% in 2013, equivalent to a saving of 3,267 metric tons of fuel used in 2013, reducing the production cost of clinker.

Corumbá e sobradinho: 100% of equipment free from PCBs.

Pinheiro Machado: reduced the use of non-renewable materials.

use of water

the company has invested in projects for the reuse of rainwater and process water (rio Branco, imbituba, Capivari de Baixo, nobres e Corumbá). in addition it has promoted water use reduction campaigns and substituted and/or improved water meters and pumping systems.

examples of results achieved are: nobres: water consumption reduced by

approximately 4 m³/day or 1,460 m³/year. esteio: water consumption reduced by

20,455 m³ of water in the year.

effluents

highlights for the year were: washing of equipment (Cajamar, Barueri, limeira); improvement projects for effluent treatment facilities (Vidal ramos, itaú de Minas, sobral, nobres and sobradinho); and changes in the locations of effluent discharge.

as a result there was an improvement in the quality of the water discharged in Vidal ramos, itaú de Minas, sobral and nobres

noise pollution

noise pollution has been reduced by planting native plants and curtains of trees around the units in Vidal ramos (10,000 seedlings) and itaú de Minas (4,200 seedlings).

sound impact reduction

Waste

Worthy of note were: the projects to build central waste deposits (Cajamar, Vidal ramos, Pecém sobradinho Capivari de Baixo); the initiatives to reduce hazardous waste (Barueri and Cajamar); the co-processing of waste (Cuiabá, nobres and sobradinho); and the reuse of waste from civil construction, tires and production process waste (Cuiabá, itaú de Minas, sobradinho).

in são luis, we achieved zero waste sent to landfill.

Cajamar: 47% reduction in the generation of hazardous waste (from 26 metric tons in 2012 to 14 metric tons in 2013 and a 23% reduction in the generation of non-hazardous waste (from 657 metric tons in 2012 to 505 metric tons in 2013.

Barueri: : a 66% reduction in waste compared to the previous year (from 57 metric tons in 2012 to 19 metric tons in 2013.

Vidal ramos: generated 26.84 metric tons of recyclable waste.

Cuiabá: utilization of approximately 22.56 metric tons of waste in co-processing (sacks, food scraps, various non-recyclable types of waste, process waste), and utilization of factory-floor sweeping waste to replace 6,244 metric tons of bauxite.

nobres: reduced amount of waste sent to landfills by 3,000 metric tons/year

environmental manaGement [G4-EN27]


initiatiVes and aCtions iMPaCts

Biodiversity

the company invested in the monitoring of terrestrial and aquatic fauna (Vidal ramos, Cuiabá and Corumbá - Port saladeiro) and the formalization of a Private natural heritage reserve on 70 hectares of farmland (angicos Farm) belonging to the itaú de Minas plant. in addition it continued investing in the protection of biodiversity and karst sites in partnership with the atlantic rainforest Biosphere reserve and the Brazilian society of speleology.

Vidal ramos: the following species were identified: 51 amphibians; 19 reptiles; 8 small flying mammals; 12 small non-flying mammals; 279 birds; 23 fish; and 22,687 macro-invertebrate individuals were collected.

Cuiabá: 153 species of birds; 38 of reptiles; 28 of mammals; 17 of amphibians and 21 of fish.

Corumbá: survey of existing species to avoid possible moves that could frighten away species from their habitats.in a partnership it also developed a land management plan for the ribeirão Grande unit (PGts).

siGnifiCant fines [G4-en29] in 2013, the company received two legal processes alleging the emis-sion of particulate matter outside the standards established by law and damage to flora without the proper environmental permit da-mage. altogether, for its operations in Brazil, north america, europe, asia and africa the company recei-ved a total of 35 fines and adminis-trative penalties, involving values of r$ 6.9 million. [G4-dMa]

2013

number of legal actions filed against the company in the year

2

Value of legal actions filed against the company in the year (r$)

1,042,413,00*

number of legal actions paid by company in the year 1

Value paid in the year for legal actions against the company (r$)

333,963,91

number of administrative sanctions received in the year 27

Value of administrative sanctions received in the year (r$) 382,666,10

number of administrative sanctions paid in the year 8

Value of administrative sanctions paid in the year (r$) 78,192,33

number of taC's or tC's received in the year 4

Value of taC's or tC's received in the year (r$) 3,808,245,81

number of taC's or tC's paid in the year 1

Value paid in the year for taC's or tC's (r$) 1,308,000,00

total number 35

total Value (r$) 6,875,288,82

*In Brazil.

siGnifiCant environmental fines [G4-EN29]


oPerations/units ProGraM

Campinas engagement with stakeholders

Camaçari Program for preparation for work

Cantagalo

Community Council

engagement with stakeholders

support for public administration

Preparation of organizations

Corumbá engagement with stakeholders

Cuiabá

Community Council

support for child and adolescent council


edealina

evolve edealina - electrical

evolve edealina - Mechanical

Community Council

Baraúna support for child and adolescent council

esteio support for child and adolescent council

imbituba

evolve imbituba 2011 - year 3

Community Council

support for child and adolescent council


itapeva Votorantim partnership for education

itaú de MinasCommunity Council


Jaboatão dos GuararapesProgram for preparation for work

Community Council

Jaguaré engagement with stakeholders

laranjeiras

evolve laranjeiras (se) 2012/2014 - year 2

Community Council



Paulistaevolve Paulista 2013/2015- year 1

Votorantim partnership for education

Pinheiro Machado evolve Pinheiro Machado 2012 year 2

operations with implemented loCal Community enGaGement in 2013 [G4-SO1]


oPerations/units ProGraM

Primavera

evolve Primavera - electrical

evolve Primavera - Mechanical

support for public administration


rio Branco do sul

reading and thinking Project

evolve rio Branco - night 2011 year 3

Community Council


evolve rio Branco - night 2011 year 3

salto

evolve salto/santa helena - 2013 - year 1

Community Council


Votorantimengagement with stakeholders

são luísevolve são luís - 2011/2013 - year 3

Community Council

são Paulo (Jaguaré)support for child and adolescent council

Program for preparation for work

seropédica Program for preparation for work

sobradinho

tae-kwon-do education: a choice for life

evolve sobradinho (dF) 2012 - year 2

Community Council



sobral

evolve sobral 2013/2015- year 1

Community Council



Vidal ramos

evolve Vidal ramos 2012 year 2

Community Council


Xambioá

evolve Xambioá (to) 2012-year 2

Community Council




the un Global Compact principleshuMan riGhts PaGe

1 support and respect the protection of human rights 74, 75 and 86

2 ensure non-participation in human rights abuses 74, 75 and 86

laBor

3 uphold the freedom of association and the right to collective bargaining 75 and 86

4 eliminate of all forms of forced and compulsory labor 74

5 effectively abolish child labor in the production chain 74

6 eliminate discrimination in respect of employment and occupation 34 and 47

the enVironMent

7 support a precautionary approach to environmental challenges 27, 71, 74 and 75

8 undertake initiatives to promote greater environmental responsibility 63, 71, 74 and 75

9 encourage the development and diffusion of environmentally friendly technologies 27, 71, 74 and 75

anti-CorruPtion

10 work against corruption in all its forms, including extortion and bribery 14, 32, 33 and 34


investments in associates and joint ventures 15 13,283,863 12,138,697 1,491,090 2,050,601

Property, plant and equipment 16 4,945,756 4,497,809 10,384,454 9,421,883

intangible assets 17 765,548 772,166 5,219,632 4,715,695

18,995,167 17,408,672 17,095,176 16,188,179

Total assets 22,171,581 20,592,198 24,650,385 23,934,896

balanCe sheetYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated Parent CoMPany Consolidated

assets note 2013 2012 2013 2012 recasted

note “3”

Current assets

Cash and cash equivalents 8 14,218 5,565 665,588 936,254

Financial investments 9 1,027,785 1,334,699 1,274,323 2,032,431

derivative financial instruments 5.4 15,010 1,617 18,548 1,617

trade accounts receivable 10 258,246 221,738 1,047,747 910,690

inventories 11 484,343 392,361 1,305,655 1,182,101

other taxes recoverable 12 86,900 85,590 179,448 176,195

Current income tax and social contribution receivable 12 95,826 79,746 161,686 83,920

advances to suppliers 42,200 72,904 90,165 110,174

dividends receivable 13 143,974 70,973 24,555 512

other assets 14 105,266 84,334 203,880 93,199

2,273,768 2,349,527 4,971,595 5,527,093

Assets of disposal group classified as held for sale 33 787,981 701,214

2,273,768 2,349,527 5,759,576 6,228,307

non-Current assets

lonG-terM reCeiVaBles

derivative financial instruments 5.4 3,049 3,049

related parties 13 17,833 32,824 103,767 16,418

Judicial deposits 20 (c) 148,611 193,821 238,994 246,470

deferred taxes 19 (b) 502,157 532,808 1,012,915 971,979

other taxes recoverable 12 172,802 26,055 269,802 41,296

other assets 14 61,243 45,442 170,155 239,198

902,646 833,999 1,795,633 1,518,410

finanCial statements [G4-17]

* the notes to the financial statements are available at: http://www.vcimentos.com.br/ir.


liabilities of disposal group classified as held for sales 33 390,305 274,104

1,416,274 1,886,739 3,091,566 3,495,991

non-Current liaBilities

loans and financing 18 11,326,447 10,505,525 12,779,596 12,177,174

derivative financial instruments 5.4 3,826 3,826 4,415

related parties 13 2,860,017 2,194,581 151,623 486,597

Provisions 20 599,202 673,188 946,205 1,070,799

deferred taxes 19 (b) 609,675 451,843 1,191,153 863,014

Payables with investees 15 26,407 16,098

use of public asset 23 398,525 381,585

Pension liabilities 30 140,897 184,812

other liabilities 22 169,379 206,253 334,162 360,259

15,594,953 14,047,488 15,945,987 15,528,655

Total liabilities 17,011,227 15,934,227 19,037,553 19,024,646

Parent CoMPany Consolidated

liaBilities and stoCkholders’ eQuity note 2013 2012 2013 2012 recasted

note “3”

Current liaBilities

loans and financing 18 552,526 399,403 721,745 606,875

derivative financial instruments 5.4 182 2,450

trade payables 362,922 394,528 925,215 856,226

Payables - trading 21 112,445 53,784 112,445 53,784

salaries and payroll charges 159,981 134,285 292,606 227,543

income tax and social contribution payable 12 68,618 51,186

taxes payable 99,489 90,630 205,783 207,497

dividends payable 13 1,880 429,158 45,664 439,122

advances from customers 6,990 11,328 69,957 18,622

use of public asset 23 24,859 23,561

account payable for the acquisition of investees 1(a) 155,946 328,452

other liabilities 22 119,859 217,677 231,919 409,019

1,416,274 1,886,739 2,701,261 3,221,887

balanCe sheetYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated


inCome statementYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated Parent CoMPany Consolidated

note 2013 2012 2013 2012 recasted

note “3”

ContinuinG oPerations

revenues 25 6,330,908 5,602,214 12,142,288 9,395,423

Cost of sales and services 27 (3,664,506) (3,323,859) (8,102,841) (6,077,981)

Gross profit 2,666,402 2,278,355 4,039,447 3,317,442

oPeratinG inCoMe (eXPenses)

selling 27 (592,665) (401,377) (893,711) (609,992)

General and administrative 27 (506,255) (435,468) (790,373) (665,646)

Gain on disposal of equity investments - Cimpor 1(a) 266,774 266,774

other operating income, net 26 59,784 98,855 326,125 284,779

(1,039,136) (471,216) (1,357,959) (724,085)Operating profit before equity results and net financial result 1,627,266 1,807,139 2,681,488 2,593,357

results oF inVestees

equity in the results of associates and joint ventures 15 774,123 526,213 96,863 9,542realization of other comprehensive income on disposal of investments 1 (a)(d) 31,045 (170,075) 31,045 (170,075)

805,168 356,138 127,908 (160,533)


liaBilities and stoCkholders’ eQuity note 2013 2012 2013 2012 recasted

note “3”

stoCkholders’ eQuity 24

Capital 2,731,375 2,746,024 2,731,375 2,746,024

tax incentive reserve 752,423 544,441 752,423 544,441

Profit reserves 1,009,380 789,781 1,009,380 789,781

Cumulative other comprehensive income 667,176 577,725 667,176 577,725

Total equity attributable to owners of the parent 5,160,354 4,657,971 5,160,354 4,657,971

Non-controlling interests 452,478 252,279

Total stockholders’ equity 5,160,354 4,657,971 5,612,832 4,910,250

Total liabilities and stockholders’ equity 22,171,581 20,592,198 24,650,385 23,934,896



note 2013 2012 2013 2012 recasted

note “3”

net FinanCial result

Financial income 186,330 242,189 376,101 296,444

Financial expense (925,452) (735,402) (1,072,152) (864,836)

exchange variations, net (42,241) (388,572) (89,745) (366,072)

29 (781,363) (881,785) (785,796) (934,464)

Profit before taxation 1,651,071 1,281,492 2,023,600 1,498,360

inCoMe taX and soCial ContriBution 19 (a)

Current (304,079) (166,023) (551,810) (359,326)

deferred (19,168) 501,330 (34,098) 501,449

Profit for the year from continuing operations 1,327,824 1,616,799 1,437,692 1,640,483

disContinued oPerations

loss for the year from discontinued operations 33 (48,857)

Net income for the year 1,327,824 1,616,799 1,388,835 1,640,483

net income attributable to owners of the parent 1,327,824 1,616,799 1,327,824 1,616,799

net income attributable to non-controlling interests 61,011 23,684

Net income for the year 1,327,824 1,616,799 1,388,835 1,640,483

total number of shares - thousand (*) 5,422,032 5,437,500 5,422,032 5,437,500

Basic and diluted earnings per share - r$ (*) 0.245 0.297 0.245 0.297From continuing operations: Basic and diluted earnings per share - r$ (*) 0.245 0.297 0.254 0.297

From discontinued operations: Basic and diluted earnings per share - r$ (*) (0.009)

(*) adjusted retrospectively from January 1, 2013 by the stock split approved on april 30 and May 27, 2013. note 24 (a).

inCome statementYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated


statement’s of Comprehensive inComeYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated Parent CoMPany Consolidated

note 2013 2012 2013 2012 recasted

note “3”

Net income for the year Lucro líquido do exercício 1,327,824 1,616,799 1,388,835 1,640,483

other CoMPrehensiVe inCoMe (loss) net oF taXes, all oF WhiCh Can Be reClassiFied to the stateMent oF inCoMe

realization of other comprehensive income on disposal of investment in Cimpor 1 (a) 89,142 89,142

realization of other comprehensive income on disposal of investments (15,720) (15,720)

interest in other comprehensive income (loss) of associates and joint ventures (7,361) (7,692) 17,216 (5,288)

hedge of a net investment / Cashflow hedge (563,681) (107,085) (563,681) (107,085)realization of other comprehensive income on disposal of investments in Vila 1 (d) (31,045) (31,045)

Currency translation of investees located abroad 665,051 483,871 660,475 483,751

47,244 458,236 67,245 460,520

other CoMPrehensiVe inCoMe (loss) net oF taXes, all oF WhiCh May not Be reClassiFied to the stateMent oF inCoMe

remeasurements of post employment benefit obligations 30 42,207 (36,273) 42,207 (36,273)

total other comprehensive income for the year 89,451 421,963 109,452 424,247

Total comprehensive income for the year 1,417,275 2,038,762 1,498,287 2,064,730

CoMPrehensiVe inCoMe (loss) FroM:

Continuing operations 1,547,144 2,064,730

discontinued operations (48,857)

1,498,287 2,064,730

CoMPrehensiVe inCoMe (loss) FroM attriButaBle to:

owners of the parent 1,417,275 2,038,762

non-controlling interests 81,012 25,968

1,498,287 2,064,730


attributable to owners of the parent

Profit reserves

note Capital tax incentive reserve legal Profit retention retained

earnings

Cumulative other comprehensive

incometotal non-controlling

interests

total stockholders’

equity

At January 1, 2012 2,746,024 360,648 272,230 1,691,705 155,762 5,226,369 192,048 5,418,417

total CoMPrehensiVe inCoMe For the year

net income for the year 1,616,799 1,616,799 23,684 1,640,483

other comprehensive income for the year 24 (e) 421,963 421,963 2,284 424,247

Total comprehensive income for the year 1,616,799 421,963 2,038,762 25,968 2,064,730

total ContriButions By and distriButions to stoCkholders

non-controlling interest in business combination 17 (d) 68,953 68,953

Merger of Votorantim Cimentos américa (“VCa”) 1 (e) (32,707) (32,707)

increase in non-controlling interest itacamba 1 (j) (1,983) (1,983)

alloCation oF net inCoMe

legal reserve 80,840 (80,840)

tax incentive reserve 183,793 (183,793)

interest on stockholders’ equity (r$ 0.03 per share)(*) (178,667) (178,667) (178,667)

dividends (r$ 0.45 per share) (*) 24 (b) (1,562,988) (865,505) (2,428,493) (2,428,493)

Profit retention 307,994 (307,994)

Total contributions by and distributions to stockholders 183,793 80,840 (1,254,994) (1,616,799) (2,607,160) 34,263 (2,572,897)

At December 31, 2012 2,746,024 544,441 353,070 436,711 577,725 4,657,971 252,279 4,910,250

statements of ChanGes in equityYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated




Profit reserves


earnings



interests


equity

At January 1, 2012 2,746,024 360,648 272,230 1,691,705 155,762 5,226,369 192,048 5,418,417






non-controlling interest in business combination 17 (d) 68,953 68,953

Merger of Votorantim Cimentos américa (“VCa”) 1 (e) (32,707) (32,707)

increase in non-controlling interest itacamba 1 (j) (1,983) (1,983)




interest on stockholders’ equity (r$ 0.03 per share)(*) (178,667) (178,667) (178,667)

dividends (r$ 0.45 per share) (*) 24 (b) (1,562,988) (865,505) (2,428,493) (2,428,493)


Total contributions by and distributions to stockholders 183,793 80,840 (1,254,994) (1,616,799) (2,607,160) 34,263 (2,572,897)

At December 31, 2012 2,746,024 544,441 353,070 436,711 577,725 4,657,971 252,279 4,910,250


statements of ChanGes in equityYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated attributable to owners of the parent

Profit reserves


earnings



interests


equity

At January 1, 2013 2,746,024 544,441 353,070 436,711 577,725 4,657,971 252,279 4,910,250






acquisition of non-controlling interest Cimpor Macau 1 (a) (9,600) (9,600) (27,900) (37,500)non-controlling interest arising on business combination artigas 1 (c) 224,795 224,795

non-controlling interest arising on business combination antequera 1 (j) 6,120 6,120

Capital redemption in kind – fixed assets 1 (g) (46,881) (46,881) (46,881)

acquisition of non-controlling interest VCnne 1 (h) (52,670) (52,670) (83,828) (136,498)

Capital contributions in kind - Voto iV 1 (i) 32,232 32,232 32,232

reversal of lapsed unclaimed dividends 62,027 62,027 62,027




dividends (r$ 0.17 per share) (*) 24 (b) (900,000) (900,000) (900,000)


Total contributions by and distributions to stockholders (14,649) 207,982 66,391 153,208 (1,327,824) (914,892) 119,187 (795,705)

At December 31, 2013 2,731,375 752,423 419,461 589,919 667,176 5,160,354 452,478 5,612,832




Profit reserves


earnings



interests


equity

At January 1, 2013 2,746,024 544,441 353,070 436,711 577,725 4,657,971 252,279 4,910,250






acquisition of non-controlling interest Cimpor Macau 1 (a) (9,600) (9,600) (27,900) (37,500)non-controlling interest arising on business combination artigas 1 (c) 224,795 224,795

non-controlling interest arising on business combination antequera 1 (j) 6,120 6,120

Capital redemption in kind – fixed assets 1 (g) (46,881) (46,881) (46,881)

acquisition of non-controlling interest VCnne 1 (h) (52,670) (52,670) (83,828) (136,498)

Capital contributions in kind - Voto iV 1 (i) 32,232 32,232 32,232

reversal of lapsed unclaimed dividends 62,027 62,027 62,027




dividends (r$ 0.17 per share) (*) 24 (b) (900,000) (900,000) (900,000)


Total contributions by and distributions to stockholders (14,649) 207,982 66,391 153,208 (1,327,824) (914,892) 119,187 (795,705)

At December 31, 2013 2,731,375 752,423 419,461 589,919 667,176 5,160,354 452,478 5,612,832


ChanGes in assets and liaBilities

Financial investments 306,914 (129,027) 758,116 (581,921)

trade accounts receivable (51,675) 155,999 (139,480) 166,802

inventories (63,960) 10,941 (69,408) (14,311)

taxes recoverable (48,287) 5,299 (24,472) (11,524)

related parties (56,500) (21,215) 18,264 (65,183)

other assets (16,077) (6,534) (210,428) 159,946

trade payables (31,606) (17,850) 46,929 (24,775)

taxes payable 183,707 (71,623) 60,796 (24,669)

salaries and social charges 25,696 25,789 59,590 76,170

advances from customers (4,338) 1,598 45,796 4,252

accounts payable and other liabilities (274,861) (200,186) (434,211) (307,823)

Cash provided by operations 2,036,687 1,929,422 3,989,449 2,661,866

interest paid (792,532) (672,578) (859,411) (719,109)

income tax and social contribution paid (28,626) (262,986) (234,549) (519,525)

Cash flows from operating activities 1,215,529 993,858 2,895,489 1,423,232

Cash flow statementsYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated Parent CoMPany Consolidated

Cash FloWs FroM oPeratinG aCtiVities note 2013 2012 2013 2012recasted

note “3”

Profit before income tax and social contribution 1,651,071 1,281,492 2,023,600 1,498,360

Profit from discontinued operations (48,857)

adJustMents to reConCile net inCoMe to Cash

From operations15 and

16 269,319 240,502 773,093 544,307

depreciation, amortization and depletion 28,943 37,168

impairment provision (596) 7,657 (1,853) 7,657

loss (Gain) on disposal of other investments (6,897) (3,494) (20,478) (9,132)Gain on sale of property, plant and equipament and intagible 1 (a)(d) (31,045) 89,142 (31,045) 170,075

realization of other comprehensive income on disposal of investments 1 (a) (34,904)

Gain on disposal of investments C+Pa 15 (774,123) (526,213) (96,863) (9,542)

equity in the results of associates and joint ventures 1 (a) (266,774) (266,774)

Gain on disposal of equity investments - Cimpor 10 (b) 15,167 4,561 41,351 11,077

allowance for doubtful accounts 11 (28,022) 13,790 (29,534) (16,217)

Provision (reversion) for inventory losses 857,132 1,257,410 1,087,994 1,215,970

interest, indexation and exchange variations (6,336) (9,823)

Fair value adjustment of derivative instruments 93,061 78,158 188,108 139,121

Provisions 2,067,674 2,176,231 3,877,957 3,284,902



Cash FloWs FroM FinanCinG aCtiVities note 2013 2012 2013 2012recasted

note “3”

new loans and financing 18 807,954 3,466,254 1,489,205 3,665,782

derivative financial instruments (346) (3,095) (2,542)

Payments of loans and financing 18 (699,780) (140,871) (2,226,676) (503,628)

related parties, net 655,749 (26,674) (65,882) (207,001)

acquisition of non-controlling interest in Macau 1(a) (37,500)

Cash obtained from capital contribution in kind - Voto iV 1(i) 52,294

acquisition of non-controlling interest VCnne 1(h) (136,498)

interest on stockholders' equity (178,667)

dividends paid (986,092) (2,441,304) (986,563) (2,263,402)


Cash FloWs FroM inVestinG aCtiVities note 2013 2012 2013 2012recasted

note “3”

Cash obtained from the acquisition of subsidiary artigas 1 (c) 91,034

acquisition of additional interest in Bio Bio 1 (f) 708

Capital increase in investees 1 (j) (14,699)

acquisition of equity investment in C+Pa (69,320) (270,916) (14,102) (58,602)

acquisition of equity investment in Cementos artigas 1 (a) (27,900)

acquisition of equity investment in Cementos avellaneda 1 (c) (50,795)

acquisition of investment in VCeaa 1 (b) (121,909)

net cash obtained on the acquisition of VCeaa 1 (a) (155,946) (657,950) (155,946)

acquisition of subsidiary antequera (net of cash obtained) 124,502

acquisition of property, plant and equipment (12,728)

acquisitions of intangible assets 15 (816,719) (1,168,102) (1,316,157) (1,497,693)

Proceeds from sale of investment yguazú 16 (2,116) (23,176) (20,848) (41,332)

Proceeds from non-current assets 1 (j) 30,535 30,535Proceeds from disposal of non-current asset held for sale C+Pa 8,427 47,896 40,721 12,407

Proceeds from disposal of other investments 1 (a) 60,200

receivables on sales of investees 112,600

dividends received 51,313 189,937 61,704 193,377

Net cash used in investing activities (984,361) (1,851,068) (1,368,825) (1,236,806)



note 2013 2012 2013 2012recasted

note”3”

reVenue

sales of products and services 25 8,366,561 7,381,847 14,875,281 11,916,935

other operating income (expenses) 26 86,140 98,855 363,292 284,779

allowance for doubtful accounts 10(b) (15,167) (4,561) (41,351) (11,077)

8,437,534 7,476,141 15,197,222 12,190,637

inPuts aCQuired FroM third Parties

raw materials and other production inputs (2,321,220) (1,585,720) (5,051,453) (3,189,945)

Materials, energy, oustourced services and other (1,248,190) (1,136,504) (2,294,909) (1,819,543)

(3,569,410) (2,722,224) (7,346,362) (5,009,488)

Gross value added 4,868,124 4,753,917 7,850,860 7,181,149

depreciation, amortization and depletion15 and

16 (269,319) (240,502) (773,093) (544,307)

Net value added generated by the Company 4,598,805 4,513,415 7,077,767 6,636,842

Value added reCeiVed throuGh transFer

equity in the results of investees 805,168 356,138 127,908 (160,533)

Financial income 29 186,330 242,189 376,101 296,444

991,498 598,327 504,009 135,911

Total value added to distribute 5,590,303 5,111,742 7,581,776 6,772,753

statements of value addedYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated

Cash flow statementsYears ended deCember 31all amounts in thousands of reais, unless otherwise indiCated Parent CoMPany Consolidated

Cash FloWs FroM FinanCinG aCtiVities note 2013 2012 2013 2012recasted

note “3”

Net cash (used in) provided by financing activities (222,515) 857,405 (1,914,715) 510,542exchange results on cash and cash equivalents of foreign subsidiaries 117,385 17,516

increase (decrease) in cash and cash equivalents 8,653 195 (388,051) 696,968

Cash and cash equivalents at the beginning of the year 5,565 5,370 936,254 221,770

Cash and cash equivalents at the end of the year 14,218 5,565 665,588 936,254



liaBilities and eQuity note 2013 2012 2013 2012recasted

note”3”

taXes and ContriButions

Federal 977,648 947,825 1,434,708 1,442,343

state 1,410,183 1,204,210 1,940,548 1,737,549

Municipal 31,586 28,783 35,307 31,293

deferred taxes 19,168 (501,330) 34,098 (501,449)

2,438,585 1,679,488 3,444,661 2,709,736

third-Party CaPital reMuneration

Financial expense 29 967,693 1,123,974 1,161,897 1,230,908

rentals 59,212 42,571 106,788 84,774

1,026,905 1,166,545 1,268,685 1,315,682

oWn CaPital reMuneration

non-controlling interests 61,011 23,684

dividends 900,000 865,505 900,000 865,505

interest on equity 178,667 178,667

retained profit 427,824 572,627 476,681 572,627

losses on discontinued operations (48,857)

1,327,824 1,616,799 1,388,835 1,640,483

Value added distributed 5,590,303 5,111,742 7,581,776 6,772,753


note 2013 2012 2013 2012recasted

note”3”

distriBution oF Value added

Personnel and Payroll CharGes

direct remuneration 434,365 351,144 910,791 662,407

social charges 237,974 197,610 350,102 276,685

Benefits 124,650 100,156 218,702 167,760

796,989 648,910 1,479,595 1,106,852


General standard disClosures

G4-1 Message from the president

G4-3 name of organization

G4-4 Principal brands, products and/or services

G4-5 Principal brands, products and/or services

G4-6 Countries where the major operating units or those most relevant to the sustainability aspects of the report are located

G4-7 type and legal nature of the property

G4-8 Markets in which the organization operates

G4-9 size of the organization

G4-10 Profile of employees

G4-11 Percentage of employees covered by collective bargaining agreements

G4-12 description of the organization’s supply chain

G4-13 significant changes regarding size, structure, shareholders and supply chain

G4-14 description of how the organization adopts the precautionary principle or approach

G4-15 Memberships of associations and organizations

G4-16 entities included in the consolidated financial statements and entities not covered

G4-17 entities included in the consolidated financial statements and entities not covered by the report

G4-18 defining the report content and the aspect Boundaries

G4-19 list of material aspects

G4-20 Boundary within the organization, for each material aspect

G4-21 Boundary outside the organization, for each material aspect

G4-22 restatements of information provided in earlier reports

G4-23 significant changes from previous reporting periods in the scope and aspect boundaries

G4-24 list of stakeholder groups engaged by the organization

G4-25 Basis used for identification and selection of stakeholders with whom to engage

G4-26 organization’s approach to stakeholder engagement

G4-27 key topics and concerns that have been raised through stakeholder engagement

G4-28 reporting period

G4-29 date of most recent previous report

G4-30 reporting cycle

G4-31 Contact for questions regarding the report or its contents

G4-32 ”in accordance” option of Gri guidelines and location of Gri list of contents

G4-33 Policy and current practice with regard to seeking external assurance for the report

G4-34 Governance structure of the organization

G4-56 organization’s values, principles, standards and norms of behavior


Specific Standard diScloSureS

G4-EC1 direct economic value generated and distributed

G4-EC6 local hiring of senior management

G4-EC7 development and impact of infrastructure investments and services supported benefiting the public

G4-EC9 policies, practices, proportion of spending on local suppliers at significant locations of operation

G4-EN1 Materials used by weight or volume

G4-EN3 energy consumption within the organization

G4-EN4 energy consumption outside of the organization

G4-EN5 energy intensity

G4-EN8 total water withdrawal by source

G4-EN11 operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

G4-EN15 direct GHG emissions

G4-EN16 energy indirect GHG emissions

G4-EN17 other indirect GHG emissions

G4-EN18 emissions intensity

G4-EN19 reduction of GHG emissions

G4-EN21 nox, Sox, and other significant air emissions

G4-EN23 total weight of waste by type and disposal method

G4-EN27 extent of impact mitigation of environmental impacts of products and services

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

G4-EN30 Significant environmental impacts of the transportation of products and members of the workforce

G4-EN31 total investments and expenditures on environmental protection, by type

G4-EN32 percentage of new suppliers that were screened using environmental criteria

G4-EN34 number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

G4-LA1 total number and rates of new employee hires and employee turnover by age group, gender, and region

G4-LA6 rates of injury, occupational diseases and lost days

G4-LA9 average hours of training per year

G4-LA11 percentage of employees receiving regular performance and career development reviews

G4-LA12 composition of governance bodies and breakdown of employees per employee category

G4-LA13 ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

G4-LA16 number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms


Specific Standard diScloSureS

G4-HR3 total number of incidents of discrimination and corrective actions taken

G4-HR4 operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

G4-Hr5 operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

G4-Hr6 operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

G4-Hr12 number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

G4-So1 percentage of operations with implemented local community engagement, impact assessments, and development programs

G4-So4 communication and training on anti-corruption policies and procedures

G4-So6 total value of political contributions by country and recipient/beneficiary

G4-So7 total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

G4-So8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

G4-So9 percentage of new suppliers that were screened using criteria for impacts on society

G4-So11 number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

G4-pr5 results of surveys measuring customer satisfaction

MM2 the number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place

MM7 the extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and indigenous peoples (*), and the outcomes

MM10 number and percentage of operations with closure plans

Gri ConsultanCy, editorial Coordination and desiGnreport sustentabilidadeteam: ana souza and Pamela Jaboour (project management and relations), Paloma Cavalcanti (Gri consulting), tita Berton (editing), renata Costa (writing), Guilherme Falcão (graphic design), Flavia ocaranza (layout).

reviewassertiva Produções editoriais

enGlish translationrichard Wightwick

photoGraphypages 02, 05, 12, 19, 35, 41, 42, 48, 50, 51 and 67 – leonardo rodriguespages 06, 21, 22, 23, 28, 58, 64 and 71 – Banco de imagens da Votorantim Cimentos

infoGraphiCCássio Bittencourt – page 10

typoGraphyFedra sans by Peter Biľak, 2001.

Credits

report production

General Coordination and produCtiondirectorate of energy, sustainability and safety - Corporate environmental managementCoordination Janaína de oliveira BarrosTeam: Patrícia Monteiro Montenegro, Carolina Moreira Meira, andressa depetriz Marcelino, Gisele Guandalini Bagoli and ana Gonzalez de aledo.Corporate Communication & Brand Management: Malu Weber, Bruna Gomes and Carolina simonetti.

directorate of finance and investor relationsGabriela Woge, daniel Gonçalves, thiago lobato, Carolina trindade and Cristiane dantas

vC Contributors adriana laporta Cardinali, alexandre Paraiso Cari, ana Paula de Medeiros Carracedo, daniel Motta, danielle Zeitune totti, elaine Bohme Pellacani, elisa Badziack, Fernanda teves de souza, Frederico Cruvinel, Giuliano Giordano, Guilherme tanferri, Maria de Fatima Peixoto nascimento, Martin Vroegh, Maurilo rodrigues Moura, Meire Correa Fontes, Patricia ramalho diniz, regiane Velozo dias, renata Brecailo, ricardo turra, roberto akiau, rogier hans hofman, ruben Plaza, silvia regina soares da silva Vieira, simone Vilela lopes, stefanie linzmaier Felix Palma, thiago tadeu Genda da silva and Vanessa nunes elias.

SOBRE O RELATÓRIOPUBLICAÇÃO ELENCA PRINCIPAIS TEMAS PARA O NEGÓCIO

É com muito orgulho que apresentamos aos nossos leitores o Relatório Integrado 2013 da Vo-torantim Cimentos. Com a publicação, buscamos demonstrar nossas realizações e nossos avanços e esforços ao longo do ano, principalmente nos aspectos econômicos, financeiros, de governança e socioambientais.

Pela primeira vez, passamos por um processo de construção de uma matriz de materialida-de específica da Votorantim Cimentos, o que nos ajudou a identificar os principais pontos relevantes para os negócios da Companhia e, também, no processo de incorporação dessas questões estratégicas à gestão da empresa. Anteriormente, utilizávamos como base a ma-triz de materialidade da Votorantim Industrial – grupo do qual fazemos parte.

Para dar ainda mais credibilidade ao reporte, aderimos a versão G4 da Global Reporting Initiative (GRI), na opção essencial (core). Participamos da iniciativa de Relato Integrado, do International Integrated Reporting Council (IIRC), apresentando o nosso modelo de negócio e incorporando cada vez mais as diretrizes desta importante iniciativa à nossa gestão, em um processo de melhoria contínua. Também estamos alinhados aos conteúdos estabele-cidos pela Cement Sustainability Initiative (CSI), iniciativa da qual a Votorantim Cimentos é signatária e uma das fundadoras, criada em 1999 pelo World Business Council for Sustainable Development (WBCSD) para trabalhar questões de sustentabilidade no setor de cimentos, além das diretrizes do Pacto Global, uma iniciativa das Nações Unidas (ONU) voltada para a gestão dos dez princípios universalmente aceitos nas áreas de direitos humanos, trabalho, meio ambiente e combate à corrupção.

Ao todo são 39 indicadores GRI, com informações que compreendem o período de 1° de janeiro a 31 de dezembro de 2013. Além disto, pontuamos algumas informações relacio-nadas à temas relevantes ocorridos em 2014.

As informações apresentadas retratam as operações no Brasil (VCBR), Canadá e Estados Unidos (VCNA – North America), Espanha, Turquia, Índia, Marrocos, Tunísia e China (VCEAA – Europa, Ásia e África) e Bolívia, Uruguai, Peru, Chile e Argentina (América do Sul).

Os dados financeiros foram auditados e as informações socioambientais receberam asse-guração limitada pela PricewaterhouseCoopers (PWC), conforme cartas disponíveis nas páginas 15 e 17 deste relatório. [G4-17, G4-28, G4-29, G4-30, G4-32, G4-33]

Este relatório integrado busca prestar contas de forma transparente a todos os nossos públicos de interesse. Além de apresentar as evoluções e metas, a publicação visa evidenciar o caminho que vem sendo percorrido pela Companhia para incorporar a gestão integrada (econômica, social e de ambiental) ao dia a dia dos nossos negócios. Dúvidas, sugestões e comentários sobre a publicação são muito bem-vindos e podem ser encaminhados para [email protected]. Outras informações podem ser obtidas no nosso site, www.vcimentos.com.br. [G4-31]

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