integrated annual report 2017reporting council's (iirc) guidelines to provide our stakeholders...
TRANSCRIPT
INTEGRATED ANNUAL REPORT 2017
B U I L D I N G O U R F U T U R E T O G E T H E R
CONTENTS
03CEO MESSAGE
04STRATEGIC REVIEW
15ECONOMIC PERFORMANCE
53ENVIRONMENTAL PERFORMANCE
71APPENDIX
26SOCIAL PERFORMANCE
64GOVERNANCE
This is TITAN Bulgaria's fourth Integrated Annual Report (IAR 2017). This report uses characteristics of the International Integrated
Reporting Council's (IIRC) Guidelines to provide our stakeholders with comprehensive information by giving an overview of our
business performance during 2017. The Reporting period is January 1st to December 31st, 2017.
This Report presents the financial and non-financial disclosures of all operations of TITAN Group in Bulgaria, referred to as TITAN
Bulgaria, including Zlatna Panega Cement AD (the legal entity for our cement and concrete operations) and all other TITAN Group
subsidiaries in Bulgaria (GSPB EAD, Double W Co EOOD, GAEA EAD). Throughout the Report, TITAN Bulgaria is used wherever we refer
to combined disclosures, except for specific cases where the exact name of the subsidiary is explicitly mentioned for pertinent figures
and other disclosures. The main content of the Report includes an overall presentation of TITAN Bulgaria activities, goals and
achievements, quantitative data and financial information for 2017.
The IAR 2017 is independently verified for non-financial disclosures regarding the consistency to the UN Global Compact
Communication on Progress principles and criteria. The audit expresses a limited assurance conclusion that the published disclosures
and indicators for Health and Safety and Environmental performance have been established in accordance with the respective
sectoral guidelines and protocols of the Cement Sustainability Initiative (CSI), which operates under the framework of the World
Business Council for Sustainable Development (WBCSD).
For contact and additional information: [email protected]
The report in PDF format can be found at: www.integratedreport2017.titan.bg
2017 PERFORMANCE HIGHLIGHTS
TURNOVER
BGN '000 83 779TOTAL ASSETS
BGN '000 175 174
EBITDA
BGN '000 7 657CAPITAL EXPENDITURE
BGN '000 3 454
EMPLOYEES (direct employees as of 31.12.2017)
267
FATAL ACCIDENTS (of direct employees)
0
Adamantios Frantzis
CEO
TITAN Bulgaria
2
Dear Stakeholders,
It gives me great pleasure to share with you the first audited TITAN Bulgaria Integrated Annual Report. By ensuring a higher level of transparency through a third-party assurance, we at TITAN Bulgaria clearly articulate our commitment to give information on the company's overall performance in 2017 to our stakeholders in an honest and comprehensive manner.
In 2017, the company experienced a deterioration in its financial performance. The growth in cement demand in the country led to a 21% rise in our revenues, however, EBITDA was down with 39%, partially affected by increased fuel costs. Although there are several economic indicators showing that Bulgaria has a promising potential for future growth as its standard of living will converge to the EU average, the current cement consumption in the country is estimated to have not even reached half of the pre-crisis consumption levels.
While dealing with the immediate financial challenges we faced, at TITAN Bulgaria we remained dedicated also to our long-term commitment to the UN Sustainable Development Goals (SDGs). In 2017, we conducted a materiality assessment review to update the material issues for the company and to align their new formulation with the relevant SDGs. Structuring a sustainable development strategy on this basis, allows us to enhance our business from financial as well as from environmental, social, and governance perspectives.
Ensuring a healthy and safe working environment is more than a priority for our business – it is an integral part of our values. For this reason, we focus our continuous efforts on preventing serious incidents by persistently revitalizing and strengthening the safety culture within our areas of operation. In 2017, we revised and improved our „Lock out – Tag out – Try out” (LOTOTO) procedure, a fundamental procedure for safety operation on the working site, and provided sufficient training for all our employees and contractors.
Our employees are a keystone for the company's future. We continue to provide them with equal opportunities to grow professionally and personally, fostering workplace diversity as part of our corporate culture. Being an employer of choice, we invest in attracting young employees to complement the valuable expertise of longtime members of the team. In 2017, strengthening its collaborations with academia, the company gave young talented people the opportunity to learn about processes and activities in a real work environment through plant visits and student internships.
Our determination to share value and support the sustainable development of the local communities stays unabated. We continued to strengthen and expand our long-term partnership with the „Teach for All” Bulgaria Foundation, which has improved the elementary education in the villages along the Zlatna Panega River. By the end of 2017, 19 new teachers have been working with over 500 schoolchildren from families with low socio-economic status concentrating on the pupils' motivation, functional literacy and proactivity and achieving exceptional results. In addition, the various initiatives organized by our Environmental department aimed at raising environmental awareness amongst young people is the surest and most sustainable approach to nurture care for the nature and keep the beauty of the region.
In 2017, we continued reducing our environmental footprint, mitigating climate change and protecting water quality along our Group's 2030 sustainability targets. We focused on operational excellence and encouraging environmental leadership in all management positions. Although our results in the utilization of alternative fuels and alternative raw materials did not reach our highest achievements in 2017, we still managed to save in excess of 17 000 tons of CO . To contribute to the circular economy, we have implemented resource efficiency in all strategic objectives of the company and used it as a basis of several new projects for utilizing waste in the clinker production as an alternative to natural raw materials. Realizing that water is essential to life and is a key resource for our industry, we have developed a sustainable approach addressing water efficiency and quality through our water treatment and recycling system based on the best available techniques.
Finally yet importantly, we realize that a company's strength to persevere, endure and inspire regardless of the challenges of time comes with a governance, in which transparency and ethics are strongly embedded. The key components that guide our professional life – respect and fairness, open dialogue, personal responsibility, open-mindedness to change, commitment to work with a focus on health and safety, are set in the Code of Conduct and the Policies of TITAN Group.
We recognize that we are living in a transformation phase where the society and the industry have to respond successfully to environmental, societal and economic changes. We feel confident that all of us, with the support of our partners, will stand up to the challenges and continue to deliver value to all our stakeholders by growing the company in a sustainable way.
CEO MESSAGE
03 CEO MESSAGE
2
STRATEGIC REVIEW
TITAN GROUP
ZLATNA PANEGA CEMENT AD – TITAN BULGARIA
WHO WE ARE, AND WHAT WE DO
OUR STRATEGY FOR SUSTAINABLE DEVELOPMENT
04STRATEGIC REVIEW
01
TITAN GROUP
Founded in 1902 as a family company in the town of Elefsina, Greece, TITAN Cement Company S.A., has built the first
cement plant in Southeastern Europe. At the present time, the TITAN Group is a leading cement manufacturer with more
than 115 years' experience in the industry, holding more than 40 companies and owning 14 cement plants in various
locations – Greece, Southeastern Europe, the USA, South America and the Eastern Mediterranean. In Western Europe,
the company has established cement distribution terminals in Italy, France and the United Kingdom.
05 STRATEGIC REVIEW
Greece
USA
Cement plants
1 Roanoke – Virginia
2 Pennsuco – Florida
Greece
Cement plants
1 Thessaloniki
2 Kamari
3 Patras
USA
Joint venture
Cement plant
1 Quixere
Brazil
2
1
1
1
23
Brazil
06STRATEGIC REVIEW
FYROM
Albania
Kosovo
Serbia
Bulgaria
Southeastern Europe
Cement plants
1 Kosjeric – Serbia
2 Zlatna – Bulgaria
3 Sharr – Kosovo
4 Usje – FYROM
5 Antea – Albania
Turkey
Egypt
Eastern Mediterranean
Cement plants
1 Alexandria
2 Beni Suef
1
1
2
3
4
5
1
2
Joint venture
Cement plant
1 Tokat
Turkey
Egypt
In the region of
Zlatna Panega
village, in a small
family factory
cement was
produced for the first
time in Bulgaria.
ZLATNA PANEGA CEMENT AD
– TITAN BULGARIA
1907
The company is
acquired by the
international
manufacturer TITAN
Cement S.A. and
joined the Group
under the name of
Zlatna Panega
Cement AD.
2004
07 STRATEGIC REVIEW
The small factory was
replaced by a large
plant named „Zlatna
Panega Cement”,
equipped with 5 new
cement production
lines.
1966As a result of the
state privatization
policy Heidelberg
Cement AD
acquired ownership
of the company.
1998
08STRATEGIC REVIEW
WHO WE ARE, AND WHAT WE DO
Zlatna Panega Cement AD is part of the TITAN Group family and is one of the main manufacturers of high quality cement
in Bulgaria. The company is vertically integrated by operating ready-mix concrete plants in 4 big cities and participates
through joint venture activities in 12 gravel and sand pits and crushed stone quarries. We are one of the pioneers in
alternative fuels utilization within TITAN Group. Our success is ensured by the use of the best available production
technology and know-how.
TITAN Bulgaria is the common term that we use to refer to all subsidiaries of TITAN Group in Bulgaria.
Our Production Units
Sofia
Plovdiv
Stara Zagora
Veliko Tarnovo
Cement Plant
Zlatna Panega Cement AD is the
l e g a l e n t i t y f o r o u r c e m e n t
operations. In the cement plant
located in Zlatna Panega village we
crush, grind and feed the raw
material to two clinker kilns to
produce cement clinker, which is
subsequently milled and mixed with
additives in order to produce
cement. In the premises of the plant,
the subsidiary company Green
Alternative Energy Assets (GAEA)
EAD operates an installation for
p r o d u c t i o n o f P r o c e s s e d
Engineered Fuel that we utilize as
alternative fuel in our kilns.
Aggregates Quarries
Gravel and Sand Pits - Bulgaria
(GSPB) EAD, a 100% subsidiary of
Zlatna Panega Cement AD, holds
shares in joint ventures, which
operate 12 quarries for sand, gravel
and crushed stone. GSPB EAD alone
holds concessions for the extraction
of aggregates in the region of
Kremikovtsi - Sofia Municipality and
the Municipality of Slivnitsa. The
c o m p a n y h a s a p e r m i t f o r
extraction of gravel and sand from
the Danube River in the Municipality
of Pirgovo. Double W Co EOOD, a
100% subsidiary of GSPB EAD, owns
and operates a port in Ruse.
Ready-mix Concrete Plants
Zlatna Panega Cement AD –
Concrete Operations Department
(previously Zlatna Panega Beton
EOOD) operates eight ready-mix
concrete production units in Sofia,
Plovdiv, Veliko Tarnovo and Stara
Zagora as well as one project based
RMC unit.
ZlatnaPanega
Ruse
Pazardzhik
CSR Europe is a leading business network, through which the TITAN Group connects
with stakeholders on issues, related to transparency, corporate responsibility, and
sustainable development.
In 2015, TITAN decided to support the achievement of the most important sustainable
development goals of UN 2030 for our business, at Group level and through the
network of local representatives.
sustainabledevelopment.un.org/sdgs
Along with 50 other leading companies, TITAN signed the European Pact for Youth in
order to actively support the European efforts in providing employment opportunities
and overcoming the problem of lack of skills among the youths.
csreurope.org/pactforyouth
Zlatna Panega Cement AD is among the first companies in Bulgaria that has joined the
UN Global Compact, and implemented the 10 universal principles in the areas of
human rights, labor, environment and anti-corruption.
The TITAN Group supports and coordinates events and actions in the context of UN
initiatives on human rights and anti-corruption.
TITAN has been a key member of the Cement Sustainability Initiative (CSI) since its
establishment by the World Business Council for Sustainable Development
(WBCSD) in 2003, and actively participates in the following working groups:
· Climate Change
· Fuel and Raw Materials
· Health and Safety
· Air Emissions
· Biodiversity
· Concrete Sustainability
· Water
· Sustainable Supply Chain
OUR STRATEGY FOR SUSTAINABLE DEVELOPMENT
09 STRATEGIC REVIEW
Detailed information about our collaborations on a global basis can be found in the 2017 Integrated Report of the TITAN Group.
integratedreport2017.titan.gr
Our Stakeholders - Collaborations for Achieving Sustainable Development
The TITAN Group participates regularly in the work programs of the World Business Council for Sustainable Development
(WBCSD) and in CSR Europe projects for evaluation of non-financial performance. It strives to use the set of tools of CSR
Europe in integrating CSR into operational business practice, as well as in dealing with the socio-economic and
environmental challenges that it faces.
While engaging in partnerships and collaborative action at local level to share its know-how, experience and best
practices and promoting solutions to safeguard the sustainable growth of the business, communities and its stakeholders,
TITAN Bulgaria also seeks to contribute meaningfully to global initiatives that the TITAN Group participates in.
10STRATEGIC REVIEW
COLLABORATION WITH STAKEHOLDERS
Collaboration with internal and external stakeholders is a key element in the business model of the TITAN Group, which is
directly connected to the values and key priorities for sustainable development of the company. The achievement of all
this happens through taking responsibility for all the people, who work in the company and/or live in the operating area.
Investors and
analysts
Customers
Business
partners,
contractors and
suppliers
Scientific
community
NGOs
Local and state
authorities
Local
community
Employees
Regulators
Identify key stakeho
lders
and material issue
s
ni se
ey
olp
me
eg
ag
nE
noit
atn
em
elp
mi y
get
arts
Our
Collaboration
Model
Our Stakeholders
DELIVERING VALUE FOR ALL
11 STRATEGIC REVIEW
We strive to deliver value to our stakeholders at every stage of our operations.
1 Products
We serve the need for safe,
durable and sustainable housing
through our products.
2 Alternative fuels
To contribute to the preservation
of natural resources we utilize
alternative fuels and raw materials.
3 Environmental activities
We are also committed to
reducing the environmental
footprint with a particular focus
on CO emissions through process
improvements and investments.
'000 BGN 3 454 in investments for future growth
to local and international suppliers
to employees for salaries, pensions
and social benefi ts, including additional
benefi ts beyond those provided by law
'000 BGN 8 730
'000 BGN 45 406
2
12STRATEGIC REVIEW
4 Our employees
We provide a healthy and safe
environment and promote lifelong
learning through continuous
training.
5 Communities
We make a meaningful contribution to our local
communities by supporting their sustainable
development by building on collaborations and
developing and investing in programs aimed at the
most material issues in our region of operation.
'000 BGN 2 533 on environmental improvements
in taxes to national and local authorities
in donations'000 BGN 217
'000 BGN 3 977
SDGs: 6, 11, 15, 17
SDGs: 3, 17
SDGs: 12, 13, 17
SDGs: 3, 4, 9, 11, 17
Specifi c net direct CO 2 emissions
(kg/t Product )
Specifi c dust particulates(g/t Clinker)
Specifi c NOx emissions(g/t Clinker)
Specifi c SOx emissions(g/t Clinker)
(comp. to 1990 level) (comp. to 2003 level)
20% 53% 43%92%
Specific water consumption
(lt/t Cement )
40%
0Fatalities
Employees, contractors
and third parties
Energy efficiency
%50of the Group’s total
clinker capacity to be covered by ISO 50001
SDGs: 7, 17
All key operations with
Community Engagement Plans related to material
issues and Group priorities
Active wholly owned sites with quarry rehabilitation plans
Active wholly owned sites of biodiversity value with Biodiversity
Management Plans
100%
Biodiversity and land stewardship
To be in the top
%25of WBCSD/CSI members’ performance in Lost Time
Injuries Frequency Rate (LTIFR) for employees
SUSTAINABILITY PERFORMANCE 2020 TARGETS
SUSTAINABILITY PERFORMANCE
13 STRATEGIC REVIEW
As the society's expectations towards businesses increase, focusing on material issues becomes crucial for elaborating a
coherent and comprehensive strategy for sustainable development. An essential step in enabling continuous
improvement of this strategy is the materiality assessment process of TITAN Group's significant operations and their
stakeholders. The following are the nine most material issues identified for the TITAN Group and its key stakeholders:
Financial Liquidity and Access to Funding
Environmental Management
Climate Change
Circular Economy
Health and Safety
People Management and Development
Sustainability of Communities
Social and Political Risks and Instability
TITAN GROUP MATERIAL ISSUES
Governance, Transparency and Ethics
The alignment of the priorities of the company with stakeholders' needs
ensures the implementation of an inclusive and consistent strategy for
the Group's sustainability.
To support the Group's long-term commitment to the UN's 2030 Agenda
for Sustainable Development, TITAN directly links its 2020 sustainability
targets and priorities with the SDGs that have been identified by the
materiality assessment process as the most relevant to the business. This is
presented in the table below.
2
1
3 (comp. to 2003 level)3 (comp. to 2003 level)3
(comp. to 2003 level)3
1990 is the base year for CO2 emissions,
2
2003 is the base year for environmental data other than CO2 emissions.
3
Product equals cementitious product as defined b y WBCSD/CSI.
1
in line with the Kyoto protocol.
Focusing on Material Issues for Our Business and Key Stakeholders
14STRATEGIC REVIEW
ALIGNING OUR STRATEGIC GOALS AND PRIORITIES WITH THE UN SUSTAINABLEDEVELOPMENT GOALS
Following the sustainable development policy of the TITAN Group, we at TITAN Bulgaria evaluated the importance of all
matters, related to our business in terms of their impact on the company and their importance to our key stakeholders.
In 2015, we began reassuring our strategic goals and priorities through conducting a materiality assessment, the
evaluation of factors we deem significant. As a next step we aligned the categorized material issues with the UN
Sustainable Development Goals (SDGs).
The table shows the most material issues for TITAN Bulgaria and its stakeholders, which were updated in the materiality
assessment review process in 2017, and their corresponding UN SDGs.
TITAN Bulgaria considers the identification of specific sustainability
targets based on the Group's 2020 targets as a substantial next step
in the company's sustainability strategy.
The further content of this report is structured along our performance
in the above-mentioned four categories (economic, social,
environmental and governance) and in relation to our progress on
the material issues and the aligned UN SDGs throughout 2017.
RAW MATERIALS / WATER
MATERIAL ISSUE
CUSTOMERS / PRODUCTS
ENERGY / CLIMATE
HEALTH
SAFETY
SUSTAINABILITY OF COMMUNITIES
PEOPLE MANAGEMENT
GOVERNANCE, TRANSPARENCY
AND ETHICS
CATEGORY
ECONOMIC
ENVIRONMENTAL
SOCIAL
GOVERNANCE
RELEVANT UN SDGS
ECONOMIC PERFORMANCE
FINANCIAL PERFORMANCE
OUR PRODUCTS
OUR BUSINESS PARTNERS
15 ECONOMIC PERFORMANCE
02
16ECONOMIC PERFORMANCE
FINANCIAL PERFORMANCE
Return on invested capital
Index Calculations (Formula) 2016 2017
Profit a�er tax / Average invested capital 0.4%
Return on capital
Ratio net debt / EBITDA
Profit per share
Earnings before interest and taxes / Average equitycapital (Own capital + Net debt)
Net debt / EBITDA
Earnings per share in BGN
0.5%
2.4
0.02
- 4.35%
- 4.2%
3.7
- 0.21
2015
2.6%
2.9%
1.3
0.14
ECONOMIC SITUATION IN BULGARIA IN 2017
In 2017, the actual GDP growth was 3.6% due to the increased export and final consumption in the country. The unemployment
rate in 2017 declined for another consecutive year and reached a record low of 6.6%, while the average salary increased by
10.6% compared to 2016.
By December 2017, the annual inflation rate reached 2.8%. We expect the inflationary trend to continue during 2018. The state
budget implementation for 2017 is characterized by a higher increase in revenue over expenditure due to the GDP growth and
the reduced infrastructure costs. For a second consecutive year, the state budget had a surplus at the amount of BGN 0.8 billion,
as of the end of the year, which was 0.8% of the GDP.
Public debt at the end of 2017 was 25.4% - lower than in 2016 (29.4%).
OVERVIEW OF THE BULGARIAN CEMENT MARKET IN 2017
The cement sales volume on the Bulgarian market in 2017 increased to 2 080 thousand tons, which was about 130 thousand tons
more than the cement sales volume in 2016. Our observations show slight growth in the cement import volumes in Bulgaria in
2017.
To assess our business performance and our progress against our strategic priorities, we use a range of financial and non-
financial indicators. It is important to note that on October 10, 2016, Zlatna Panega Cement AD and Zlatna Panega
Beton EOOD made a merger agreement, under which Zlatna Panega Beton EOOD merged with Zlatna Panega
Cement AD, and ceased to exist as an independent legal entity. Therefore, as of 2017, all financial and non-financial
indicators referring to Zlatna Panega Cement AD include information regarding our Concrete operations department.
PERFORMANCE HIGHLIGHTS
17 ECONOMIC PERFORMANCE
Zlatna Panega Cement AD registered an
increase in cement sales volume. We have sold
a total of 566 thousand tons of cement
(compared to 526 thousand tons in 2016), 35
thousand tons of which have been exported. In
addition, the company has exported 106
thousand tons of clinker.
SALES VOLUME
4602015
Sales volume in '000 tons
480
500
520
540
560
580
600
620622
526
566
640
2016 2017
The sales revenues of Zlatna Panega Cement AD
increased by 21% in 2017 compared to 2016.
SALES REVENUE
02015
Sales revenue BGN '000 000
10
20
30
40
50
60
70
8080.6
69.1
83.8
90
2016 2017
18ECONOMIC PERFORMANCE
As a result of the merger of Zlatna Panega Beton EOOD with Zlatna Panega Cement AD, the increased fuel costs and the
increased sales of clinker, the company reported a loss of BGN 6 945 thousand in 2017 (compared to BGN 735 thousand
Net profit in 2016).
NET PROFIT
EBITDA also marked a decrease and amounted
to BGN 7 657 thousand (in 2016 it was BGN 12 631
thousand).
EARNINGS BEFORE INTEREST, TAXES,
DEPRECATION AND AMORTIZATION
(EBITDA)
2015
16881
12631
7657
0
2000
4000
6000
8000
1000
1200
1400
1600
1800
2016 2017
NET DEBT
Due to the optimization of working capital and
the reduced investments in 2017, the Net debt of
Zlatna Panega Cement AD dropped to BGN 28
040 thousand (BGN 29 969 thousand in 2016).
On April 27, 2018, additional agreements were signed to extend the concessions of the Zlatna Panega and Koritna
quarries to 15 years.
There were no additional notable events subsequent to December 31, 2017, which require corrections and/or additions
to the company annual financial report.
POST BALANCE SHEET EVENTS
EBITDA in BGN ’000 000
Net debt in BGN ’000 000
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2015 2016 2017
Zlatna Panega Cement AD is a leading
manufacturer of cement, concrete and
aggregates. The company strives to sustain a
modern, efficient and sustainable production
model combining the creation of economic
value with environmental protection.
As a result of the active promotion and
investment in manufacturing innovation, Zlatna
Panega Cement AD creates products,
enhancing the qual i ty and stabi l i ty of
construction materials, facilitating construction
and reducing the negative impact on the
environment.
OUR PRODUCTS
19 ECONOMIC PERFORMANCE
20ECONOMIC PERFORMANCE
Normal Early Strength Portland Cement - CEM I 52.5 N
This product is used in the production of high-early strength and pre-stressed concrete, of concrete products and precast
elements, exposed to periodic freezing/thawing, and of reinforced concrete elements with or without thermal
treatment.
GREY CEMENT All cement types, produced by Zlatna Panega Cement AD,
comply with the BDS EN 197-1 Standard.
Available in bulk
High Early Strength Sulfate Resistant Portland Cement - CEM I 42.5 R-SR
Intended for use in aggressive sulfate containing waters, the sulfate resistant Portland cement is recommended for the
production of concrete and reinforced concrete hydraulic structures, exposed to sulfate aggression, systematically
repeated freezing and thawing, or wetting and drying, sulfur-containing gases and seawater. It is also suitable for use in
concrete, intended for pressure and non-pressure installations in soils with varying degrees of filtration and sulfate
aggression. Available in bulk and packed in 25 kg bags
High Early Strength Limestone Portland Cement - CEM II/A-L 42.5 R
Limestone Portland cement is used in the production of small-sized concrete products and components, and such
exposed to periodic freezing and thawing. It is also used in reinforced and unreinforced concrete and industrial
constructions. Available in bulk and packed in 25 kg bags, in 50 kg bags
for the internal market, and in 40 kg bags for export
High Early Strength Limestone Portland Cement - CEM II/B-L 32.5 R
This Limestone Portland cement type contains a higher limestone level (up to 35%) and is suitable for various building
activities – flooring, masonry, plastering works, etc.Available in bulk and palletized in 25 kg and 50 kg bags
Low Heat Slag Cement with Normal Early Strength - CEM III/A 42.5 N-LH
Low heat cement is characterized not only by its low heat of hydration, but also by a slow increase in the early strength
characteristics, high sulfate resistance and reduced frost resistance. It is recommended for the production of large-sized
(solid) concrete and reinforced concrete parts, such as large-sized elements of tall buildings, concrete dams, etc
Available in bulk
Normal Early Strength Pozzolanic Cement - CEM IV/A (P-V) 32. 5 N
Pozzolanic cement is produced by grinding together Portland cement clinker, pozzolans and fly ash. Renowned for its
great water resistance and water repellent performance, pozzolanic cement is one of the basic constituents of
concrete and reinforced concrete elements, used under water or exposed to high humidity
Palletized in 25 kg and 50 kg bags
Normal Early Strength Pozzolanic Cement - CEM IV/A (P-V) 42. 5 N
This Pozzolanic cement type has a lower Portland cement clinker (65 to 89%) and a higher pozzolans and fly ash (11 to
35%) content. It is also used in components, exposed to or constantly under water.
Palletized in 25 kg and 50 kg bags
21 ECONOMIC PERFORMANCE
Micronized Limestone is a finely ground, natural calcium carbonate. This high quality fine filler has a wide range of
applications, such as production of building materials: asphalt, concrete and dry construction mixes. It is also used in
agriculture, for purification of sulphur-containing TPP exhaust gases, in glass production, in production of paper, paint,
plastics, etc.
MICRONIZED LIMESTONE
Available in bulk
Zlatna Panega Cement AD – Concrete Operations Department offers a wide range of products used for reinforced and
non-reinforced constructions. Our ready-mix plants produce the following classes of concrete established and certified
in accordance with the BDS EN 206 and BDS EN 206/NA Standards.
In terms of compressive strength class, our concrete ranges from C8/10 ÷ C50/60 and S1 ÷ S5 classes of slump
(consistence). As to the maximum diameter of the aggregates in concrete, our concrete mixes have Dmax = 11.2 mm
and Dmax = 22.4 mm (the nominal upper aggregate size of the coarsest fraction Dmax is used for classification).
For structures and facilities that have intermittent or permanent contact with water we offer the following water
tightness classes: Cw 0,4 ÷ Cw 1,0. Clients choose the class depending on the thickness of the structure and the
hydrostatic pressure value. The concretes of the frost resistance classes (Cfr75 ÷ Cfr200) are used in structures and
facilities exposed to frequent freezing and thawing.
We produce exposure classes concrete related to environmental actions, intended for constructions exposed to the
following environmental risks: corrosion induced by carbonation (XC1 ÷ XC4), chlorides other than from seawater
(XD1÷ XD3), chlorides from seawater (XS1÷ XS3); freeze/thaw attack with or without de-icing agents (XF1÷ XF4);
chemical attack (XA1÷ XA3).
The company also works with customers' prescriptions.
CONCRETE PRODUCTS
FLOOR SCREED MORTARS
We manufacture floor screed mortars based on cement and in full compliance with the BDS EN 13813.
We offer the following floor screed mortars classes as per compressive strength: C12, C16, C20, C25, C30.
CEMENT BOUND GRANULAR MIXTURE
T h e c e m e n t b o u n d g r a n u l a r m i x t u r e w e p r o d u c e c o m p l i e s w i t h t h e B D S E N 1 4 2 2 7 - 1 .
This product is used for construction and maintenance of roads, airports and other traffic-intensive areas.
22ECONOMIC PERFORMANCE
In 2017, we have developed the following concretes for
special application in highly demanding projects.
Low Heat Concrete
The Low heat concrete was developed for the special needs
of two highly demanding construction sites in Sofia – Sky Fort
Skyscraper (205 m) and Zlaten Vek Tower (126 m). The big and
deep foundations required concrete with low exothermic
properties, due to the danger of cracks. The new concrete
was produced with a specially developed type of cement
CEM III/A 42, 5 N – LH.
OUR NEW CONCRETE PRODUCTS
Torcrete
C 25/30 (Dmax=8mm) S4 W0.8 Bo3.0 XC2
C 30/37 (Dmax=8mm) S4 W0.6 Bo3.0
Torcrete is developed for the construction of metro tunnels in
Sofia. Due to project time restrictions, this concrete is
produced 24/7.
High strength concrete
Concrete type C 50/60 was developed for the special
needs of the Sky Fort Skyscraper (205 m). The concrete is
designated for vertical elements and the anti-seismic core of
the building. This product is produced with cement CEM I 52,
5 N and polycarboxilate admixture.
Pouring of 3 000 m foundation
of the Zlaten Vek Tower.
Pouring 9 000 m foundation
of the Sky Fort Skyscraper
3
3
CUSTOMERS
In 2017, the cement market showed a slight rise in cement consumption, despite the expectations for a significant
positive change in market trends. The predictions of market growth were supported by the increased demand for
housing in the big cities as well as the advancement of the running EU-funding Programming Period 2014-2020 with
expected considerable investments in the national infrastructure of Bulgaria - construction of highways, railway tracks
and major environmental projects.
Despite the positive trend in market consumption, TITAN Bulgaria carried out its operating activities in the context of
sharpening competition.
Our main priority during the year was again satisfying the needs of all our customers. Sales team representatives
focused on more frequent customer visits to improve service and get feedback. The efforts of the Sales and Logistics
departments were highly successful in maintaining constant contact with all customers to prevent any supply and
quality issues.
We have also managed to sustain the high quality of the products and supply service in the cement bulk consumption.
In this respect, we received commendation from our partners represented by multinational companies in the country
such as Bramac, Semmelrock Stein+Design, Baumit, etc.
In 2017, we attracted as partners companies involved in major infrastructure projects such as the construction of the
Struma Motorway, Sofia Metro, etc.
In the packaged cement market, we continued following our strategy for selling products in different price segments to
satisfy the needs and requirements of customers from different groups.
To guarantee our clients' safety during the service, we have introduced a system for constant monitoring of our cement
delivery vehicles' technical condition.
OUR BUSINESS PARTNERS – CUSTOMERS AND SUPPLIERS
23 ECONOMIC PERFORMANCE
24ECONOMIC PERFORMANCE
56 written enquiries from companies about cement products purchase
43 of the companies that had made enquiries were attracted as our clients
7 of them have signed long-term contracts for cement purchase with the company
SUMMARY STATISTICS
42 questionnaires filled in by different clients from Sofia and the Southwest, the North and the South region.
34 of them are clients of Zlatna Panega Cement AD for more than 3 years.
53% of the respondents assessed the quality of our cement as VERY GOOD.
About 81% of the respondents evaluated the customer service of our Sales Department as VERY GOOD, while the rest
evaluate it as GOOD.
The efficient and easy communication with all departments, quality and timely service, responsiveness to the clients'
needs, adequate feedback, promptness, good customer relations and accuracy of the staff were pointed as a plus
of the relations with the Sales Department at every level.
The respondents pointed as very appreciated the following advantages of our Logistics Department: fast and quality
deliveries, adequate reactions to questions and issues, good organization of the logistics process of execution of
bulked and packaged cement orders, which leads to reliability of the deliveries and earned trust.
Excellent cement quality is the benefit of our products that our customers value most.
CUSTOMERS' SATISFACTION STUDY
SUPPLIERS
Zlatna Panega Cement AD maintains a very well organized supply chain, in which special attention is given to suppliers.
Methods of selection, control and evaluation of suppliers are governed by the Code of Conduct for Procurement of the
TITAN Group, in which the categories of quality, reliability, adaptability and location of business are the key criteria of
assessment. To ensure selecting and working with suppliers, which are consistent with TITAN's values and standards, we
require our partners in the supply chain to respect our health and safety policy, labor and human rights, and
environmental standards and regulations.
In line with its corporate social responsibility policy to support local communities and local businesses, the company
makes effort to invite all local suppliers that can offer a required product or service to a tender bidding process. In
addition, while selecting the most acceptable bid, we give priority to local suppliers, if their offers are approximate to
the price of a supplier who is not operating in the region of the Zlatna Panega plant.
The company works also with international suppliers providing goods, such as fuels, specialized spare parts, and
cement paper bags. The deliveries of these international suppliers are centralized.
25 ECONOMIC PERFORMANCE
NUMBER OF MAJOR
SUPPLIERS
47 11 23.40% 62
NUMBER OF MAJOR
LOCAL SUPPLIERS
% LOCAL SUPPLIERS TOTAL NUMBER OF
LARGE CONTRACTS
SOCIAL PERFORMANCE
OCCUPATIONAL HEALTH AND SAFETY
PEOPLE MANAGEMENT
SUSTAINABILITY OF COMMUNITIES
26SOCIAL PERFORMANCE
03
OCCUPATIONAL HEALTH AND SAFETY
27 SOCIAL PERFORMANCE
Health and safety are material issues that affect the lives of our employees and contractors every day, as well
as their families and communities. TITAN Bulgaria is committed to maintain the best working environment
conducive to developing quality workforce, enhancing efficiency and productivity and ensuring physical
and mental wellbeing. We also urge our contractors and other business partners to adopt similar policies.
28
OUR COMMITMENT TO SAFETY
In order to ensure our commitment to safety at work, we implement effective programs covering a variety of issues that
focus on the working conditions.
We started the positive practice of reporting, investigating and accounting incidents without consequences (near
misses) for the employees, equipment and the environment in 2010. In 2017, 166 near miss and incidents reports have
been submitted by employees and contractors. Each report was reviewed, investigated and the identified
occupational risks were communicated to the employees and eradicated. The monthly rewarding of the participants
in eliminating the hazards has been successfully applied as a motivating method since 2014. The incorporation of the
practice of reporting, investigating and accounting incidents without consequences in the Concrete operations
department of the company is currently in process.
The procedure „Permit to Work” ensures that authorized and well-qualified and trained people have identified the
potential risks and these risks have been minimized through the use of appropriate safety regulations and measures of
control. This procedure was fully revised in 2017. During the year 6 755 permits were issued, incl. 2 071 electrical permits to
work.
The „Lock out – Tag out – Try out” (LOTOTO) procedure ensures the identification of all potentially dangerous sources
of energy for each facility or technological area. During operation all the identified sources are turned off, marked and
locked by the supervisors in charge and by all employees in that particular work station. In 2017, the LOTOTO procedure
was revised, reassessed and improved.
The company also monitors its contractors' compliance to the health and safety procedures. A number of services are
provided on the territory of the plant by a variety of specialized companies. To establish sound cooperation with reliable
companies, we have launched a contractors' database. Apart from the assessment of the services' quality, the
database comprises the level of compliance to our health and safety programs.
In 2017, we continued the practice of safety audits of production areas and processes. 12 teams, including
representatives from different departments and external organizations conduct the audit in 12 areas of the plant. Every
month each team checks the conditions in one of these areas. They complete a report with the identified dangerous
conditions and actions of employees. The reports are being analyzed and measures for eliminating the risks are taken.
To guarantee our direct employees' and contractor employees' safety, we regularly inspect, mark and ensure the
reliability of high-risk facilities in the plant, as well as provide protective equipment and supervise its use by all
employees. Our fire-fighting system is being inspected monthly. Fire-extinguishers are regularly maintained and
reloaded. We have also arranged a 24-hour available team, which is ready to react in the initial stage of fire.
In 2017, there were three lost time injuries (LTIs) in TITAN Bulgaria. The first incident had a lighter impact (ankle injury during
lunch break), whereas the second was a serious fracture in the neck caused by falling from small height during cleaning
of a belt conveyor, and attributed to sudden dizziness. The third was a thigh injury of a direct employee from our
Concrete operations department. This incident occurred during the works on the Hemus highway project. All incidents
were thoroughly investigated and corrective measures were taken to prevent other similar incidents in the future.
SOCIAL PERFORMANCE
29 SOCIAL PERFORMANCE
Fatality - A death resulting from a work-related accident, with no time limit between the date of the accident and the date of death; fatalities are
reported for direct employees, contractors/subcontractors and third parties as defined by the CSI Health and Safety Measuring and Reporting Guidelines
(ver. 4.0, 2013)
LTI (Lost Time Injury) - Injury at work is any injury due to which an employee is absent from work, for one or more working days, excluding the day of injury as
defined by the CSI Health and Safety Measuring and Reporting Guidelines (ver. 4.0, 2013)
1
2
PERFORMANCE/YEAR 2015 2016 2017
Fatalities
LTI
Safety Audits
Near Misses - Direct Employees
Near Misses - Contractors
Permits to Work
H&S Training Hours
0
1
155
7
0
5 998
7 842
0
0
157
4
6
7 595
9 517
0
3
151
6
4
6 755
9 400
1
2
3
3
Near Misses – Reported incidents with no consequences as defined by the TITAN Guidance in place (numbers for 2015 and 2016 adjusted according to
the updated TITAN Guidance as of 2017)
3
A new Health Policy was announced to the personnel by the management of Zlatna Panega Cement AD in 2016. The
created Health Program became an additional measure for securing a healthy working place and protecting the
health of every employee. In 2017, materials and information boards on a variety of health issues were positioned in the
plant.
Тhe company also provides annual preventive medical check-ups for all its direct employees, adapted to their health
hazard exposure and other specific needs.
During а routine safety walk asbestos containing plates were detected in the cable channels. Because of the health
hazards of asbestos exposure, immediate action was taken. Due to the specific treatment needed for this material, we
hired a certified company. All permissions according to the Bulgarian legislation were prepared before starting. The
asbestos-containing plates were removed, packed and exported from the plant territory.
30SOCIAL PERFORMANCE
OUR COMMITMENT TO HEALTH
Health is an integral part of the company's commitment to caring for
its employees' well-being. Apart from considering the health
hazards of the working environment and taking measures to avoid
them, the company has established additional health practices.
In order to safeguard the health of our employees in the Zlatna
Panega plant to the maximum extent, we have built a medical
center on the plant premises, which is fully equipped. A medical
specialist is available 24/7 in the center in case first aid or a
consultation on a health issue is required.
Removing asbestos-containing plates in full
compliance with the safety regulations
CASE STUDY
NEW H&S INITIAL BRIEFING VIDEO
We updated the video materials used in the initial briefing of visitors in the plant to reflect the technical and
organizational changes in the production process. The video materials are bilingual – in Bulgarian and in English. The
materials are designated for visitors as well as newly recruited employees.
31 SOCIAL PERFORMANCE
HEALTH AND SAFETY – GAEA EAD
Due to the specifics of the alternative fuels (AF) business, the main focus in the field of health and safety is on people
continuous development. Targeted trainings were done based on business, individual and legislation needs not only for
own personnel but also for permanent contractors. In addition, several improvements were done along the PEF line,
such as mechanical LOTOTO, blocking systems, safety covers and fences, access platforms to service the equipment,
etc.
During the year, several external audits were done by VDZ (AF Quality control), TUV (ISO integrated management
system for quality, safety and environment protection), Regional Environment Authorities in Pleven (compliance with
waste legislation), TITAN H&S Dept. All of them proved very good status of GAEA operation, as well as full compliance
with legislation, best practices and procedures.
32SOCIAL PERFORMANCE
OCCUPATIONAL HEALTH AND SAFETY TRAINING
The concept that health and safety matters are of vital significance for our progress in life, is a guiding principle in our
business philosophy. Well-trained and informed employees establish a solid foundation for work safety and reduced
accident risks.
In 2017, 9 400 man-hours of health and safety trainings have been conducted for TITAN Bulgaria key managers, heads
of departments and employees, directly employed in the company, whereas 3 032 man-hours of trainings have been
attended by contractors' employees.
Training of key managers and heads of departments
Training for conducting an initial H&S briefing
Discussions on the changes in the H&S legislation
Defensive driving training for the employees
driving company cars
Training of employees
Qualification trainings: li�ing equipment training;
maintaining of natural gas equipment; electrical safety
qualification, etc.
Working with biological agents (in cooperation with
GAEA EAD)
Monthly H&S meetings with all employees on the
following topics: „Safety signs under Bulgarian law”, „Fire
safety and fire extinguishers”, „Personal Protective
Equipment”, „Emergency plans”, „Rules and norms for
manual work with weights”, “LOTOTO”, “Working with
compressed gas cylinders”, „Safety at the office”,
„Crystalline silica”, „How to avoid specific dangers at
work”,
„Training for the prevention of serious accidents” –
the program, commenced in 2016, features a series of
narrative sessions, presenting serious incidents at various
TITAN Group locations over the years, and analysis of the
actions and decisions that have led to these accidents.
In 2017, the program focused on: „Overhead and
underground power l ines”, „Fall ing rocks” and
„Rollovers”
„Protection against falling” training – includes a cycle
of 4 trainings, first of which was conducted in 2017
Weekly training – 54 media-supported discussions,
held for the executive staff, complemented with the best
practices of CEMBUREAU
First-aid training of employees participating in the first-
aid teams
Training on the renewed Permit to Work procedure
Training of contractors
All contractor employees are invited and encouraged
to participate in the monthly health and safety
meetings
Fire-safety training
Training on the renewed Permit to Work and LOTOTO
procedures
In 2017, an average of 14 man-hours of trainings per
employee were organized for the contractors'
employees
33 SOCIAL PERFORMANCE
WORKPLACE SAFETY
In 2017, an audit on cement carrier trucks and other
company vehicles was conducted. This audit has
become an annual practice to ensure vehicles'
technical reliability and reduce winter driving risks.
The alcohol testers installed at the plant entry point
contribute to dealing with workplace incidents,
absenteeism and reduced productivity caused by
alcohol abuse.
In 2017, the following workplace safety projects were
completed: installation of safety railings and barriers in
the Mills Department; secure service areas and
staircases constructed for the Preheater tower, and in
the Kilns and Raw mills department.
34SOCIAL PERFORMANCE
STAKEHOLDER ENGAGEMENT ON HEALTH AND SAFETY
The employees of our Health and Safety Department are members of the Health and Safety Experts club in Pleven,
where they discuss changes in health and safety legislation, and share best practices.
The company is also actively participating in the Health and Safety Association.
A representative of the department is a member of the Bulgarian Chamber of Mining and Geology. This Chamber
works on safety regulations in the mining industry.
In 2017, we conducted again a one-day training for students from the Medical Academy in Pleven, who were
acquainted with the cement production technology, occupational risks - dust, noise, microclimate, and good
practices for preventing risks.
PEOPLE MANAGEMENT
35 SOCIAL PERFORMANCE
We believe that the employees are a key part of our success, so we strive to build long-term relationships with
them as well as with our contractors and the local community. Care for their development is our priority and we
strive to provide equal opportunities for professional and personal development. We are confident that the
knowledge, skills and competencies that result from the long working experience of the employees in TITAN
Bulgaria, are a pledge for the company's prosperity.
Percentage of employees by years of
employment in TITAN Bulgaria
up to 5 yrs
5 to 10 yrs
10 to 20 yrs
20 to 30 yrs
over 30 yrs
21%
37%
15%
18%
9%
36SOCIAL PERFORMANCE
287
22
27.62%
37.14%
84.27%
12 244
289
16
26.99%
35.29%
85.47%
18 359
295
32
27.12%
32.43%
84.75%
18 379
1
PERFORMANCE/YEAR 2015 2016 2017
Average Employment
New Hires
Share of women in employment
Share of women in management
Employees from local community
Training hours
37% of our employees have over 10 years of service in TITAN Bulgaria, 18 % - between 10 and 20 and 9% - over 30 years.
TITAN Bulgaria also seeks to invest in attracting new employees to complement the valuable expertise of longtime
members of the team. Compared to the previous year, in 2017, the proportion of newly recruited employees under 30 is
nearly doubled from 37.5 % to 62.5% of all new hires.
37 SOCIAL PERFORMANCE
Age distribution of employees newly hired by
TITAN Bulgaria owned companies in 2017
under 30 years
30 to 50 years
over 50 years
6.25%
62.50%
31.25%
We are engaged in the care of local communities - traditionally, our employees live near the location we are
developing our business. In 2017, 84.75% of the employees of TITAN Bulgaria are local residents.
TITAN Bulgaria is committed to providing equal opportunities
for all. Gender and age diversity are recorded in hiring (new
employees) and in management. In 2017, again the highest
percentage of women in management positions was
registered in Serbia (35.71%), Bulgaria (32.43%) and FYROM
(28%). TITAN Bulgaria is second in the Group, where the
average rate for this indicator is 15.69%.
Gender distribution of employees on
managerial positions in TITAN Bulgaria 2017
Women
Men
32.43% 67.57%
Management
Production and Quality
Finance and IT
Administration
Sales
Human Resources
5%
30%
15%
19%
12%
19%
38SOCIAL PERFORMANCE
The largest share of female employees in TITAN Bulgaria is employed in the Production and Quality sectors (30%),
Finance and IT and Administration (19%). Compared to 2016, there is an increase of 3% for Production and Quality, 1% for
Finance and IT and 7% for Administration. In 2017, 43.75% of all newly hired direct employees are female, whereas the
total percentage of women in TITAN Bulgaria corresponds to 27.12%.
Percentage of women by department
in TITAN Bulgaria 2017
4006
9400
687
3022
TRAINING AND DEVELOPMENT
As an employer, TITAN is aware that the talent, skills, personal qualities and creativity of the employees have a strong
impact on the Group's performance. The investment in employee development remained a top priority in 2017 - more
than 80% of the Group's employees participated in training programs. The emphasis in the programs is again in the area
of health and safety. An increase of the training in the categories of environmental protection, compliance with the
Code of Conduct and Human Rights Policy is being observed.
Increasing the competence of our teams and the continuous learning are a key indicator for the achievement of our
business goals. In the past 2017 TITAN Bulgaria's investments in trainings amounted to a total of 18 379 man-hours - a
strong trend continuing from 2016, when a total of 18 359 man-hours were invested in trainings.
39 SOCIAL PERFORMANCE
Total number of man-hours of trainings for direct
employees in TITAN Bulgaria in 2017
Zlatna Panega Cement AD
Concrete operations department
GAEA – Green Alternative Energy Assets EAD
Double W Co EOOD
15603
We continue to develop the technical competence of our employees. In 2017, 4 006 man-hours were generated in this
key business category. At the same time, attention is paid also to non-technical trainings (1 125 man-hours), foreign
languages (3 022 man-hours) and people management (687 man-hours).
Total training hours
per category
Environmental Protection
Technical Trainings
Health and Safety
Management Trainings
Non-technical Trainings
Language Trainings
0
2000
4000
6000
8000
10000
12000
14000
16000
1620 1060
96
1125
139
40SOCIAL PERFORMANCE
Compared to 2016, in 2017 there is a drastic increase in the man-hours dedicated to technical training (141.76 %) and
environmental protection (82.89 %).
In average, 62 training hours per employee were invested in 2017. There is also a positive trend towards a higher share of
women who received training – the ratio trained women/trained men increased from 35.15% in 2016 to 40.18% in 2017.
We are committed to train both - our directly hired employees and the employees of our contractors. In 2017, the
contractors' employees received training for 3 139 man-hours, 3 032 of which dedicated to health and safety topics and
107 - to environmental protection.
Total number of man-hours of
training of indirect employees
Health and Safety
Environmental Protection
107
3032
Total hours of Health and Safety
trainings in TITAN Bulgaria
Direct employees
9400
3032
Health and safety trainings remain a key part of TITAN Bulgaria's training program, and in 2017 this category represents
51% of all trainings for direct employees (9 400 man-hours).
Indirect employees
Cmentors Industrial Program
The Cmentors industrial program, launched in December 2016, continued in 2017. 22 staff members of TITAN Bulgaria
spent a total of 2 182 training hours in training. 856 hours were spent in lectures and field work. The remaining 1 326 man
hours were generated by the self-training of participants in the internet-based VDZ program (Verein Deutscher
Zementwerke - Association of German Cement Producers).
The duration of the training was 1 year and covered three main modules on the following topics:
Quarry, crushing and preparation of raw materials
Grinding, homogenization and processing of raw materials and solid fuels
Pre-heater tower, calcination and emissions
Cmentors is a program focused on learning by experience. A pre-formed focus group went through field training at the
end of each module. It included tours of the cement plant, during which the participants mapped out specific steps for
improvement of material quality and facility operations.
At the final stage of each module, the group prepared a report with suggestions for operations improvements.
41 SOCIAL PERFORMANCE
42SOCIAL PERFORMANCE
THE PACT FOR YOUTH
In 2017, TITAN Bulgaria continued to work with young people, giving them the opportunity to learn about processes and
activities in a real work environment. In March, we invited teachers and students from the Technical University of Sofia to
visit the cement plant in the village of Zlatna Panega.
Our guests were acquainted with the projects for the modernization of the electrical equipment at the plant as well as
with the main activities related to the electrical maintenance and automation of the machines. The Head of Quarry
and Crushers Department, the Head of Electrical Maintenance, the Head of Process Automation and the Deputy Head
of Mechanical Maintenance of the Plant introduced the students and the teachers to their activities through their
fascinating presentations.
The Human Resources Department has provided valuable advice to young professionals on how to prepare and
successfully present a job interview, including how to write a resume and a cover letter. The students also learned about
the internship opportunities that the company offers.
The visit ended with an exploratory tour, during which students had the opportunity to see the processes and work at the
factory, as well as ask questions to the colleagues who accompanied them.
INTERNSHIP PROGRAM 2017
In 2017, 15 students took part In the traditional internship program of TITAN Bulgaria. They were trained and developed
applied skills in a real work environment in the following departments:
Electrical maintenance
Investments (Civil Engineers)
Production and Quality
Our internship program is aimed at active and ambitious young people - 3rd and 4th years of the following degrees:
Silicate Technologies, Electrical Engineering and Electrical Equipment, Mechanical Engineering and Technology,
Construction of Buildings and Facilities and Finance.
Distribution of interns by
department in 2017
Electrical maintenance
Investments (Civil Engineers)
Production and Quality
Environmental
Business projects
Information Technology
4
6
2
1
11
Environmental
Information Technology
Business Projects
SUSTAINABILITY OF COMMUNITIES
43 SOCIAL PERFORMANCE
Due to the remoteness of the cement plant from big cities, our company has strong interaction with local
communities. Developing and sustaining a working relationship with the communities where we operate is
fundamental to building trust with local stakeholders. Therefore, we have acknowledged the sustainability of
communities as a material issue. To ensure that we have a positive impact on society and the local
communities' sustainable development, we have not only engaged in collaborative projects, but have
developed our own. While taking action at local level, we also seek to contribute meaningfully to global
initiatives such as the European Pact for Youth.
44SOCIAL PERFORMANCE
ECOLOGY AND ENVIRONMENTAL PROTECTION PROJECTS
TITAN Bulgaria engages with communities to protect biodiversity and preserve local flora and fauna in the beautiful
region where the cement plant operates. We have established traditions in working with local schools in order to raise
the level of environmental education among youngsters through organizing a variety of projects and initiatives. We
believe that making young people feel closer to nature while exploring its beauty is a sustainable way of enhancing
their ecological culture.
Annual River Cleaning – A new tradition in the region
In spring 2017, we conducted for a fi�h consecutive year the annual river cleaning campaign. Organized for the first
time in 2013, today this initiative has become a tradition, uniting the efforts of a constantly increasing number of
volunteers for a cleaner environment and a better image of the region. Among the participants, removing litter from the
banks and bed of the Zlatna Panega River were employees of TITAN Bulgaria, students and teachers from the local
schools, representatives of fisher clubs and of other partnering organizations and institutions. The volunteers from the
village of Rumyantsevo cleaned not only the banks of the river, but also the school, the kindergarten and the park in
their village.
The participants collected separately combustible and non-combustible waste. At the end, the combustible waste
was transported to the cement plant to be utilized in the kilns.
KARST PROTECTION
Zlatna Panega Cement AD operates in a beautiful karst
region, close to the largest karst spring in Bulgaria - Glava
Panega. Recognizing its responsibility for the protection
of the karst territories, the company joins a variety of
karst protection initiatives. Their main initiator is the
National Institute of Geophysics, Geodesy and
Geography at the Bulgarian Academy of Sciences
(BAS).
45 SOCIAL PERFORMANCE
Zlatna Panega River Stocking
In May 2017, together with The Old Otters Fishing Club – the largest fishing club in Bulgaria, we ran our third campaign for
restocking the Zlatna Panega River with 10 000 baby fish of the endangered Balkan trout (Salmo trutta fario). The annual
river stocking also contributes to the sustainable development of the villages along the river by attracting tourists fond of
trout fishing.
46SOCIAL PERFORMANCE
„Travelling School of Karst“– Our Partnership with BAS
In September 2017, TITAN Bulgaria supported for the second time the initiative „Travelling School of Karst’’ of the National
Institute of Geophysics, Geodesy and Geography (NIGGG) at the Bulgarian Academy of Sciences, as the plant in the
village of Zlatna Panega was included in the project program. During their plant visit the participants were acquainted
with the production cycle and the environmental policy of the company, aimed at keeping the integrity of karst
formations and the protection of biodiversity in karst regions.
The Travelling School of Karst is part of the ProKARSTerra-Edu specialized educational strategy developed by the
Experimental Laboratory of Karstology at NIGGG-BAS in international cooperation and with the support of UNESCO.
Participants in the project are teachers and students with declared interest in karst from Bulgaria and partner countries.
The program of the travelling school includes visits of protected natural and cultural-historical sites where participants
have the opportunity to learn about various karst forms: caves, surface karst complexes, plateaus, karst springs,
marshes, etc. The organized lectures, discussions, work with research facilities, measurements, analyzes, and field
experiments help create rich and lasting knowledge of the origin and nature of the karst, protected karst areas and their
biodiversity.
Student Ecofilm
A direct result of the company's efforts for environmental education of the young people in the region is the film on
ecological topics prepared by pupils from the village of Zlatna Panega. The film is a product of the pupils' participation
in the „School Miracles” project. In this project, the participants choose an issue of importance to the local community
and work to create solutions for this issue. The team of pupils from Zlatna Panega chose to address the issue of the clean
drinking water in their village and the role of each member of the local community in its preservation.
To support the students in their initiative, the company introduced the project organizers with a karst specialist at
NIGGG-BAS. The expert organized a tour tracking the water flow, where he acquainted the participants with the
formation of rocks in their village, told them about the underground tunnels and karst waters and how they are related
to the water they are drinking.
As a result of the training, the students learned that the waste dumped on the ground pollutes the groundwater that
flows into the Glava Panega spring, which is a source of drinking water for the village of Zlatna Panega. They organized
a waste cleaning campaign and, in their educational ecofilm, called for local people to follow their example - to clean
the place where they live and not to contaminate it, because they pollute the water they drink themselves.
47 SOCIAL PERFORMANCE
ACCESS TO QUALITY EDUCATION
Empowering young people with skills for jobs has been identified as a material issue for our local stakeholders. By
supporting the right of access to quality education for youths, the company contributes to strengthening the local
community and helps tackling issues such as unemployment and a high percentage of people living below the poverty
line in the region of operation of Zlatna Panega Cement AD.
48SOCIAL PERFORMANCE
OUR PARTNERSHIP WITH THE “TEACH FOR BULGARIA”
FOUNDATION
In 2013, TITAN Bulgaria involved the „Teach for Bulgaria” Foundation in its initiatives in the region and started its long-term
support for the right of education for every child.
The mission of Teach for Bulgaria is to encourage and prepare capable and ambitious young people to become
inspiring teachers and leaders. Within a two-year program of professional and leadership development, they receive
targeted training and support to work as teachers of pupils from vulnerable communities in schools all over Bulgaria. The
organization believes that every child in the country should learn from teachers who support their students and help
them unleash their full potential.
Zlatna Panega Cement AD supported both financially and through establishing relationships with local principals the
Teach for Bulgaria program in the Lovech region. By the end of 2017, 19 new teachers have been working with over 500
schoolchildren from families with low socio-economic status in four elementary schools in Yablanitsa Municipality in the
villages of Oreshene, Brestnitsa, Zlatna Panega and Dermantsi and one elementary school in the village of Cherni Osam
in the Municipality of Troyan. For five years in a row, the teachers, participating in the program, have been focusing their
efforts on the development of functional literacy, entrepreneurial and communication skills of the students,
providing them with opportunities to learn through interesting and entertaining methods and extracurricular activities.
Many teachers continue to teach or remain active advocates of education in the region a�er the two-year program.
Impact of TITAN Bulgaria and Teach for Bulgaria Foundation partnership
on the education in the Lovech region:
Increase in school attendance through regular interactions with parents, focused on addressing students' motivation
to attend school and see the value of education.
Increasing students' reading literacy through interactive games, extracurricular activities like reading clubs and
competitions, and providing additional a�er school support to students who have fallen behind.
Increasing students' results on subject tests from the diagnostic test taken at the start of the school year to the final
assessment taken at the end. Historically, students' results improve by 10-15% in a school year on average.
Students from the villages continue their education in high-schools in the region, including in language and
professional high-schools. For many of the students, they are the first in their families to continue their studies past grade 7.
Developing local leaders among the students participating in extracurricular activities. These activities also help
students improve their reading literacy, emotional intelligence, team work and resolving complex issues skills.
49 SOCIAL PERFORMANCE
„Gramotko’’ - a literacy competition
In May 2017, in the Brestnitsa village, the Gramotko competition was held for the first time. Four teams of pupils from three
primary schools in the villages of Zlatna Panega, Brestnitsa and Oreshene competed in three rounds: reading, writing
and mathematics.
The initiator of the competition is a teacher from the „Teach for All” program, working in the Brestnitsa village. She
included her enthusiastic colleagues, who worked in the Zlatna Panega and Oreshene village schools. The pupils (1st –
4th grade), who wanted to participate in the competition, were strongly motivated to work hard during the school year.
The competition encouraged the pupils to develop their team work skills as well as their ability to rise to challenges.
„Gramotko” was exciting for the pupils and for their parents as well, who were proud of their childrens' results and
grateful to their teachers for all the efforts. The contest also motivated the rest of the teachers at the Brestnitsa school
which is a step in the development of the whole school.
Case Study
50SOCIAL PERFORMANCE
„School Miracles’’ – Care for my Community
School Miracles is an initiative of Teach for Bulgaria teachers working in the villages of Brestnitsa, Oreshene and
Dermantsi, which started as a series of events for the local schools, but in 2017 it grew into a long-term program for
students' leadership. At present, it includes student leadership teams from 11 villages and towns in the municipalities of
Yablanitsa, Lukovit and Troyan. Most of the students in the program come from poor families and a problematic social
environment. School Miracles aims to develop in them the skills and attitudes to help them analyze and find solutions to
problems in their communities. Within the project the students choose an issue, which is important for their own
community.
Pollution and unregulated landfills, non-compliance and vandalism in school, early marriages – these were some of the
issues the students chose to work on. The pupils chose different means to tackle the issues and create awareness in the
local community – discussions, presentation of the problem through a theatre play, which the participants wrote,
building a fitness site, organizing cleaning campaigns, etc. With the help of volunteer mentors, purposeful trainings,
diverse activities and School Miracles team support the students are encouraged to initiate the change they want to
see in their community and birthplace.
Case Study
51 SOCIAL PERFORMANCE
STRATEGIC PARTNERSHIP FOR THE BULGARIAN EDUCATION
The experience gathered at local level allows TITAN Bulgaria to share good practices and to extend its support for
education at national level. In 2017, TITAN Bulgaria joined the Education Bulgaria 2030 Association, thus following the
commitment of TITAN Group to the European Pact for Youth that sets as a main goal the improvement of opportunities
for social inclusion and professional development of the European youth. The association unites the efforts of more than
40 organizations from the public, private and social sectors, around a common vision for achieving the desired
improvements in Bulgarian education quality and access through monitoring the evolution of key indicators,
promoting best practices through informing and advocating for relevant policy changes.
TITAN Bulgaria actively participates in the working group for advocacy of educational policies in front of relevant
institutions as well as in strategic meetings for Bulgarian education, organized by Education Bulgaria 2030.
RAISING AWARENESS ON HEALTH AND SAFETY TOPICS
Early starting education on health and safety ensures that it
will become a natural part of children's life and games.
Therefore, we share our experience in the field of health and
safety through initiatives organized in collaboration with
local schools to raise the awareness of the pupils.
In 2017, we conducted a one-day training in the plant for
students in 10th grade from the Vasil Levski secondary
school in Yablanitsa. They were presented the topics
„Safety training for young people” and „H&S Good
practices in Zlatna Panega Cement”. A tour of the plant
was also organized for the students.
Training of the youngest pupils (1-4th grade) on H&S rules
was held in the Vasil Levski School in Yablanitsa.
Representatives from the H&S department of the company
spoke about: „Safe behaviour at school and at home”,
„Safety when surfing the Internet” and „Students Daily
Regimen”. All pupils were given a „Fire Safety Handbook for
Children’’.
52SOCIAL PERFORMANCE
DONATIONS
The company supports the sustainable development of local communities also through donations in cash and in kind
for schools and community centers, construction of churches and temples, sports activities etc.
Schools and community centers
2015 2016 2017
Mayoralties and municipalities
Churches
Sports
Others
Total
Donations made by the company in the period of 2015 – 2017, in BGN
As of 2017, the data shows total donations of TITAN Bulgaria, while in 2015 and 2016 data does not include donations by Zlatna Panega Beton EOOD.
110 000
25 000
17 000
15 000
40 000
207 000
21 000
61 000
37 000
32 000
26 000
177 000
80 000
60 000
45 000
10 000
22 000
217 000
1 1 1
1
ENVIRONMENTAL PERFORMANCE
ENERGY AND CLIMATE
WATER
RAW MATERIALS
53 ENVIRONMENTAL PERFORMANCE
04
In regards to environment, 2017 can be characterized as a year of change and adaptation to the new context in which
the organization operates - new emission standards according to the conclusions on best available techniques in
cement production, new organizational structure integrating concrete and cement production, new management of
the company in the face of the new CEO and his new priorities. The focus was on ensuring stable facility operations and
encouraging environmental leadership in all management positions to ensure keeping the low levels of the company's
environmental footprint.
The strategic objectives of the company remain unchanged: increasing the share of alternative fuels, reducing carbon
dioxide emissions in cement production, working with various stakeholders to achieve sustainable development.
Considering the needs and expectations of the stakeholders, TITAN Bulgaria (with the major environmental impact of
the operations being under Zlatna Panega Cement AD) continued to perform the following activities:
Program for raising the ecological engagement of the students in local schools, which includes seasonal water quality
monitoring, biomonitoring, ornithological observations; harvesting seeds from regionally specific plant species to
restore natural habitats; cleaning of the waste along the banks and the bed of the Zlatna Panega river.
Maintaining a mini waste collection system along the Zlatna Panega river;
Restocking the Zlatna Panega river with Balkan trout;
Cooperation with Bulgarian Academy of Science on educational projects.
In 2017, environmental management costs and investment in environmental friendly technologies have an
approximately equal share in the total amount of environmental costs – 44.1% and 43.9% respectively. The first group
includes all the maintenance costs of the treatment facilities, maintenance of the industrial site cleanliness, ecological
monitoring costs, incl. such as calibration of continuous emission monitoring devices, costs of environmental studies,
audits, etc. In terms of investment, in 2017, predominant are those that aim at increasing the amount of alternative fuels
used, maintaining low dust emissions and new analyzers for automatic emissions monitoring in the atmosphere.
2017 ENVIRONMENTAL HIGHLIGHTS
54ENVIRONMENTAL PERFORMANCE
2017
Environmental management costs
Reclamation of plant site costs
Investments in environmental equipment costs
Waste management costs
55 ENVIRONMENTAL PERFORMANCE
The focus on ensuring stable operation of the facilities
and the striving for continuous improvement has led to
a significant reduction in emissions of pollutants into the
atmosphere.
Sulfur dioxide emissions are reduced by 66%
compared to 2016. NOx emissions marked a 12%
decline compared to 2016, while Carbon monoxide
emissions dropped by 27%. 300
200
100
0
400
500
600
700
800
2015
2 17
2016
427
SО – kiln No 4, mg/Nm SO - ELV, mg/Nm3 32 2 SО – kiln No 5, mg/Nm32
mg
/Nm
3
600
400
200
0
800
1,000
1,200
mg
/Nm
3
2015
326 338
2016
343295
NOx – kiln No 4, mg/Nm Nox – kiln No 5, mg/Nm3 Nox - ELV, mg/Nm33
2017
143 1
Monitored and reported in accordance with the WBCSD/CSI
Guidelines for Emissions Monitoring and Reporting in the Cement
Industry (ver. 2.0, 2012); Emissions concentrations refer to 273.15 K
temperature, 101.3 kPa pressure, dry gas, 10% 0₂
2017
290 272
Dust - g/t clinker Dust – kiln No 5, mg/Nm3Dust – kiln No 4, mg/Nm3
15
10
5
0
20
25
30
mg
/Nm
3
35
40
2015
0.742.36
2016
0.81 1.19
2017
0.68 0.24
Dust emissions decreased by 53% in 2017 as the average annual dust particulates concentration in the exhaust gases of
the two kilns remained below 1 mg/Nm at an emission limit value of 20 mg/Nm .
44%
8%
4%
44%
3 3
1
1
1
EMISSIONS OF GREENHOUSE GASES AND ENERGY EFFICIENCY
TITAN Bulgaria, and in specific the operation under Zlatna Panega Cement AD, as part of TITAN Group, is actively
working to reduce greenhouse gas emissions and strengthen its resilience to climate change threats. In 2017, the
specific NET CO emissions of the company are 709.90 kgCO /t cementitious product. A share of 60% of these emissions
is resulting from the decarbonization of the raw materials – these are the so-called process emissions and are hardly
reducible. The other 40% are emitted during fuel combustion process and their reduction is a matter of energy efficiency
and low carbon fuel mix. The main tool to minimize the CO emissions from fuels is to replace the fossil fuels with waste
fuels (alternative fuels). At Group level, Zlatna Panega Cement AD is a pioneer in the utilization of alternative fuels and
alternative raw materials. The effective operation of the subsidiary company of TITAN Group, 'GAEA' (Green Alternative
Energy Assets) EAD has established innovative services in waste management, utilization of materials and production of
alternative fuels. GAEA EAD is a good example of how TITAN Group puts the circular economy at the heart of its
operations.
CO emissions:
A�er several consecutive years of steady improvements in alternative fuels (AF) utilization, as well as reaching highest
results in 2016 in terms of substitution rates, the AF thermal substitution rate was decreased in 2017, mainly due to the
limited capacity of the alternative fuels feeding system. Total substitution for the year for both kilns reached 18.0% p.a.,
wherein 8.9% with Processed Engineered Fuel (PEF) and 9.1% with tires. The focus of the engineering staff of the
Production and Maintenance departments in 2017 was to study the possibilities to optimize the processing and feeding
operations and identify areas for improvement.
ENERGY AND CLIMATE
56ENVIRONMENTAL PERFORMANCE
2016 Gross CO emissions (kg CO /t Product ): 2017 Gross CO emissions (kg CO /t Product ):716 739
673 710
12 2
2 12 2
2
2016 Net CO emissions (kg CO /t Product ): 2017 Net CO emissions (kg CO /t Product ):12 2
2 12 2
2
Reported in accordance with the WBCSD/CSI CO and Energy Protocol: CO and Energy Accounting and Reporting Standard for the Cement
Industry (ver. 3.0, 2011)
Product equals cementitious product as defined by WBCSD/CSI
1
2
10.6%
AF (% h.b.)PEF (% h.b.)Tires (% h.b.)
10.1%
10.0% 9.1%
17.0%
8.9%
0
10
20
30
2 2
2
2
2 2
57 ENVIRONMENTAL PERFORMANCE
The challenging circumstances required:
significantly decreasing waste supplies without losing
streams or customers, and
optimizing costs wherever possible so that the cement
plant does not incur losses from PEF due to very low
volume.
With all efforts made by Zlatna Panega Cement and
GAEA teams approximately 13 ktons of waste were
rediverted from the landfills and utilized and an average
of 17 ktons of CO emissions were saved, thereby
honoring the company's long-term environmental
engagement. The carbon-neutral biomass constituted
7.2% of the alternative fuel mix in 2017.
А new waste mix was designed in a way to maximize the local supplies, especially pushing for hazardous waste where
the increase was 41% in volume compared to 2016.
Several new projects started in 2017 with test supplies, which would have the potential to substantially increase the local
volumes. The aim is to double the volume of high quality local streams of waste within the next 1-2 years.
Mixed plastics – this stream is a residue from plastics recycling with very high quality
Textile – the stream is a residue from second hand clothes
Other streams – different types of high quality material from waste collection systems and waste management companies
Local RDF – few small sorting facilities with potential volume up to 2 ktons p.a.
Hazardous waste – further increase the volume of sludge mixes up to 2-3 ktons p.a.
The PEF volume for the year 2017 was low, decreasing by more than double compared to 2016. Despite high downtime
and irregular work schedule due to frequent interruptions of PEF consumption, the targets were to align the PEF
production process with kilns consumption and to continue improving the PEF quality with the new waste mix.
In order to increase flexibility for feeding ready-made material and bypass part of the installation, a mobile feeding belt
and bunker were delivered and installed at site. This will allow certain savings from operational costs, ability to feed PEF
during maintenance of the PEF line and avoid losing material with the rejects.
The PEF quality has been steadily improving over the years, where highest results were achieved in 2017. At present, PEF
quality is comparable to coal on a stable basis.
2
ADAPTATION TO CLIMATE CHANGE
In the context of strengthening the capacity to adapt natural ecosystems to climate change, the company
implements projects related to the conservation and restoration of natural habitats. Zlatna Panega Cement AD
maintains its own nursery with forest species that are typical for the area of the cement plant and uses these plants for
reclamation of depleted quarry terrains . For the main quarry of the cement plant – the Zlatna Panega Quarry, a
Biodiversity Management Plan has been developed and executed for the fourth year.
58ENVIRONMENTAL PERFORMANCE
A key part of the fight against climate change and its consequences is the education and awareness of the community.
In 2017, TITAN Bulgaria continued the work with the local schools pupils to increase their environmental commitment,
emphasizing in part of the lectures the impact of climate change on ecosystems and quality of life.
15,000
10,000
5,000
0
20,000
2015
PEF Production (tons)
2016 2017
15731
7223
PEF Volumes and QualityNearly 50% of the company's investments in 2017 were focused on
increasing energy efficiency and using alternative fuels. Amongst the
most important projects is the reconstruction of the raw meal
homogenization and storage complex. The project is expected to be
completed in early 2019 and to lead to a reduction of the specific
electricity consumption for the homogenization of raw meal by 77%.
Electrical energy consumption:
In line with the WBCSD/CSI Guidelines on Quarry Rehabilitation (2011)
Developed in compliance with the WBCSD/CSI Biodiversity Management Plan (BMP) Guidance (2014)
1
2
12624
Pupils voluntarily take part in the planting of
new seeds in the plant's nursery.
1
2
2016
73.05Gwh p.a.
2017
74.91Gwh p.a.
Preservation of water quality and its efficient use are among the main priorities of Zlatna Panega Cement AD. The
company maintains a system for water treatment and recycling of water in production, using the best available
techniques. The quantity of water used is monitored by an electronic system of water meters, which enables an in-
depth and timely analysis of the received data. The specific water consumption for 2017 was 308 l/t cement -
significantly below the target set for ZLatna Panega for 2020 by TITAN Group. In 2017, 59% of the utilized water used for
production was recycled water. Although, this share is smaller than in 2016 and 2015, the tendency of using recycled
water for cooling and cleaning of the production site to save fresh water is generally maintained. A large share of the
fresh water in the cement plant is used for irrigation and maintenance of the green areas. The quality of discharged
wastewater is periodically monitored. In 2017, the limit values of observed parameters were not exceeded. The
appropriate waste water quality is sustained by a three-stage Waste Water Treatment Plant, a flotator for industrial
cooling water and a system of sludge-retainers for rainwater from the production site.
Water quality is sustained by a three-stage Waste Water Treatment Plant, a flotator for industrial cooling water and a
system of sludge-retainers for rainwater from the production site.
Specific water consumption:
WATER
59 ENVIRONMENTAL PERFORMANCE
The cement plant operates near the biggest karst spring in Bulgaria – „Glava Panega”. To guarantee the quantity and
quality of the groundwater, specific methods of mining are introduced in the Zlatna Panega quarry, strict rules for work in
the quarry and the cement plant have been established, as well as water quality monitoring. By chemical composition
and properties, the water from the „Glava Panega” spring meets the requirements for drinking water.
The Glava Panega spring – a photo
by Lyubomir Profirov
The Glava Panega lake – a photo
by Lyubomir Profirov
2016
293l/t cement
2017
308l/t cement
The use of natural resources is the basis of the modern economic model, but their increasingly tangible scarcity has
forced the adoption of a number of international programs aimed at sustainable use of natural resources and reducing
the negative impact on the environment caused by their use. The UN Sustainable Development 2030 Agenda sets
specific targets in this respect and the European Commission adopts an action plan for the circular economy, the
implementation of which provides an appropriate regulatory and financial framework to stimulate resource efficiency
and waste minimization. Resource efficiency has been embedded in all strategic objectives of Zlatna Panega
Cement AD and is the basis of a number of specific projects . In 2017, several new alternative additives to clinker were
tested. These additives constitute waste from other industries, which is used to replace significant quantities of natural
raw materials in cement clinker production. During the year, 20 ktons of industrial and hazardous waste were utilized in
the production of cement clinker and about 30 ktons in the cement production. TITAN Bulgaria investment plans for 2018
include the reconstruction of the clinker feeding installation, providing conditions for the use of increased in volume and
variety alternative raw materials.
Biodiversity conservation is directly related to the sustainable use of natural resources for cement products. We have
been executing for four years a Biodiversity Management Plan, which we developed for our main quarry – the Zlatna
Panega quarry.
RAW MATERIALS
60ENVIRONMENTAL PERFORMANCE
In line with the WBCSD/CSI Guidelines for Co-Processing Fuels and Raw Materials in Cement Manufacturing, v.2.0 (2014).1
2
Biomonitoring Activities with Local Schools
In 2015, our project for voluntary monitoring received and successfully utilized grant funding via the
Financial Mechanism of the European Economic Area.
The project was developed in cooperation with the Regional Environmental Center for Central and Eastern Europe –
Branch Bulgaria, Section „Nature” of the Regional Historical Museum in Pleven and the Environment and Public Health
Office Kjos District – Iceland. The main objective of the project is to raise awareness of the environmental status of rivers
located near industrial plants and to include students in voluntary monitoring and conservation activities.
A�er the official end of the project in 2016, Zlatna Panega Cement AD resumed the activities of voluntary biomonitoring
carried out with students from the local schools. In May, June and October 2017, employees of the Environmental
Protection Department and a specialist from Regional Historical Museum, Pleven, conducted educational trips along
the river for groups of local pupils. The children monitored the status of the river ecosystem by using equipment
purchased at the beginning of the project to measure pH, dissolved oxygen content, and water flow speed. They
learned the indicators of a clean aquatic environment while the specialist from the Regional Museum in Pleven held
lectures on the typical plants and herbs in the region, their harvesting, storage and benefit. The lectures ended with a
game in which the pupils applied their knowledge in the discovery and recognition of certain plant species.
Developed in compliance with the WBCSD/CSI Biodiversity Management Plan (BMP) Guidance (2014)2
Case Study
1
61 ENVIRONMENTAL PERFORMANCE
62ENVIRONMENTAL PERFORMANCE
Birdwatching with Pupils in the Karlukovo Karst Region
In May 2017, TITAN Bulgaria organized a birdwatching event for the pupils, who participate in the ecological clubs in the
schools of the Zlatna Panega and Rumyantsevo villages. Employees of the Environmental Protection Department of the
company, Mr. Lubomir Profirov, Environmental Consultant „Ornithology and Protected Areas” and Ms. Antonia
Dimovska, representative of the Bulgarian Society for the Protection of Birds also took part in the initiative. Before
heading to the Prohodna cave in Karlukovo, Mr. Profirov introduced the students to the diversity of birds in Bulgaria, as
well as the differences between males and females, through a presentation with rich photo material. For the children
the walk in and around the Prohodna Cave was filled with a lot of excitement because of the beauty and the
extraordinary variety of plant and animal species that this site offers. They had the opportunity to see 14 bird species. Of
these, 8 species are in the Karlukovo karst area, which is a protected area under the Natura 2000 Birds Directive.
Case Study
63 ENVIRONMENTAL PERFORMANCE
In 2017, we continued conducting ornithological studies in the company's quarries and in the cement plant site. Birds'
habitats were surveyed between April and September, using the transect method (Bibby et al., 1992). In 2017, 58
species of birds were observed, six of which were listed in the Red Book of the Republic of Bulgaria (2015).
The conditions in the Zlatna Panega quarry are suitable for a variety birds species to nest and hunt. Among these species
is the common raven (Corvus corax), nesting in the Eastern areas of the Zlatna Panega quarry. Its conservation status in
the Red Book is near-threatened.
There is a variety of birds species, which find suitable conditions for breeding, food and the needed tranquility on the
cement plant premises. Among them is the endangered species Falco peregrinus. The rich ornithological variety in the
quarries and cement plant of Zlatna Panega Cement AD is a sign of a clean ecological environment and production
practices that are in line with the protection of the environment.
The Peregrine Falcon Rescue
In the middle of July 2017, a small bird of prey was found on the plant premises in Zlatna Panega. The bird, who later
turned out to be a young male representative of the protected falcon species, was scared, very weak and infected
with parasites. Our Environmental Protection Department employees consulted an ornithologist the same day. A�er
that the falcon was transported to the Wildlife Rescue Center in Stara Zagora, where its condition began to improve at a
fast pace and he was soon released into the nature. According to the rescue center experts, the reason for his fall was
the inexperience of the young male and the excessive exhaustion caused by weakness and parasite infection.
Case Study
GOVERNANCE
64GOVERNANCE
05
65
GOVERNANCE HIGHLIGHTS
Good corporate governance, in which transparency and ethics are strongly embedded, creates long-term
value for our business and stakeholders. We adhere to international and European standards in this area.
GOVERNANCE
66
GOVERNANCE, TRANSPARENCY AND ETHICS
FOCUS ON HUMAN CAPITAL AND
CORPORATE SOCIAL RESPONSIBILITY
POLICY
We are constantly developing and striving for
continuous improvement of our relations with
all stakeholders, based on mutual respect
and understanding. Within TITAN Group we
share our best practices to improve the skills
and efficiency of every Group member in
meeting the strategic priorities.
CONTINUOUS IMPROVEMENT IN
A COMPETITIVE MARKET
TITAN Bulgaria strives to continuously optimize
the technical equipment, structure and
organization of work by investing in assets
and application of new methods and
processes. Our goal is to strengthen the
competitive position of the company on the
Bulgarian market.
CONSTANT DRIVE TOWARDS
SUSTAINABLE DEVELOPMENT
The company believes that the pursuit of
financial stability is bound to sustainable
development. The operation of the cement
plant in Zlatna Panega village contributes to
improving the living standards in the region.
The company supports a number of
environmental, social and
cultural initiatives.
VERTICAL INTEGRATION
OF PRODUCTION
TITAN Bulgaria seeks to expand its activities in
other areas of the cement product chain in a
pursuit of better customer service and access
to new opportunities for revenue generation.
TO REACH THIS
OBJECTIVE
WE FOCUS ON:
OUR COMMON VISION
To be one of the most economically, environmentally and socially
responsible producers of building materials.
OUR GOVERNING OBJECTIVE
The successful combination of entrepreneurial spirit and operational excellence
with respect for people, society and the environment.
GOVERNANCE
STRATEGIC PRIORITIES - OUR GUIDING PRINCIPLES
FOR ACHIEVING GROWTH AND SUCCESS
67
CORPORATE VALUES
GOVERNANCE
Our values are the core of our company, providing the foundations of our success and growth.
In the context of our values, we nurture a culture of collective ambition and cooperation, and encourage personal
responsibility for achieving our common goal. At the same time, we insist on mutual trust and respect.
INTEGRITY
Ethical business practices
Transparency
Open communication
COMMITMENT
TO RESULTS
Shareholder value
Clear objectives
High standards
Enhancement of our
knowledge base
Proficiency in every function
Excellence in core
competencies
COMMITMENT
TO RESULTS
CONTINUOUS
IMPROVEMENT
Learning organization
Willingness to change
Rise to challenges
VALUE TO THE
CUSTOMER
Anticipation of customer needs
Innovative solutions
High quality products and services
CORPORATE
SOCIAL
RESPONSIBILITY
Safety first
Sustainable development
Stakeholder engagement
68
IMPLEMENTATION OF TITAN GROUP'S
POLICIES IN TITAN BULGARIA
GOVERNANCE
To us the good corporate governance is synonymous with ethical business practices, transparency, open
communication, accountability and sustainable development.
Corporate policies are an essential guide to maintaining a healthy business process. To ensure consistency with TITAN
Group's principles, ethics and beliefs, TITAN Bulgaria implements the Group's policies in all its business operations.
The table below shows the level of implementation of each TITAN Group policy in TITAN Bulgaria as of 2017.
Launched by TITAN Bulgaria: The policy has been translated in Bulgarian and communicated through corporate
means (i.e. Intranet, Announcement Boards, or else)
Implemented by TITAN Bulgaria: Policy implementation is supported with induction courses and formal training
sessions directed to managers and employees
Assessed by TITAN Bulgaria: Policy is incorporated in regular audit activities either conducted by third parties or by
corporate experts and results are used for improving performance and sharing best practice throughout the region or
the Group
Group Policy/Level of Implementation
by TITAN Bulgaria
Launched by
TITAN Bulgaria
Implemented by
TITAN Bulgaria
Assessed by
TITAN Bulgaria
Group People Management
Framework
Group Occupational Health and
Safety Policy, and Framework
Group Human Rights Policy (Freedom
of association, child labor)
Group Environmental Policy
Group Climate Mitigation Strategy
Group Anti-Bribery and Corruption Policy
(Compliance, grants, donations and contributions)
Group Sanctions Policy
Group Competition Law Compliance Policy
and Guidelines (compliance, customers and suppliers)
Group CSR Policy
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔✔✔
69
OUR INTEGRATED MANAGEMENT AND REPORTING SYSTEM
GOVERNANCE
In the years following the company's privatization, management systems meeting international standards were
gradually introduced:
ISO 9001 Quality Management System (certified in 2001);
SO 14001 Environmental Management System (certified in 2003);
BS OHSAS 18001 Health and Safety System (certified in 2009).
In 2009, the above three systems - for quality, environment and occupational health and safety, were united in one
integrated system, which was of great help for the application of good practices in the company activities.
In 2015, following TITAN Group's principles for transparency, open communication and reporting, TITAN Bulgaria started
the voluntary publishing of its Integrated Annual Report.
FINANCIAL AND NON-FINANCIAL RISKS
During operations, TITAN Bulgaria inherently faces risks of financial and non-financial nature, which our management
seeks to prevent or mitigate. Effective risk management is essential for achieving the company strategic goals and long-
term sustainable development. The company has developed flexible systems for monitoring and eliminating or
minimizing various potential and significant risks.
IMPORTANCE OF RISK MITIGATING ACTIVITIESTYPE OF RISK
LIQUIDITY RISK
Liquidity management involves use of various credit lines in
order to ensure a bigger share long-term credit lines with a
commitment to the bank. The company closely monitors on
a daily basis the levels of utilization of its credit lines. By the
31st of December, 2017 the company had utilized loans
amounting to BGN 280 million and unused credit lines of
BGN 8 million. 32% of the utilized loans are long-term loans.
CREDIT RISK
The company closely monitors its customers' financial
status and on this basis sets a credit limit for each customer.
Additional collateral from customers is required to secure
payments. Impairment of receivables is applied in the
case of inability of the customers to settle the amounts
owed to the company.
FOREIGN CURRENCY
EXCHANGE
The company faces a currency risk with payments to
foreign suppliers or in case of using foreign currency
credits.
All credit lines of the company are in local currency. Thus,
the receivables from customers are hedged in a natural
way as they are almost entirely in local currency.
Company loans are secured by corporate guarantees
issued by the parent company. The parent company is
registered in an EU country, undergoing economic reforms.
If these reforms fail, the company will face additional
liquidity risk.
The company is not exposed to significant credit risks.
Receivables from customers come from a wide customer
base.
PRODUCTION COSTS
Due to the cyclical development of the industry, fuel prices
also vary cyclically. The fuel, electricity and raw material
costs form the largest segment of the company's
production costs. Price changes in conventional fossil fuels
pose the risk of large variation in production costs
To mitigate this risk, the company will continue investing in
equipment, aiming at the reduction of conventional fuel
utilization and increasing the alternative fuels substitution
rate.
HEALTH AND SAFETYSafety is the key to maintaining the work permits of the
company.
To ensure safe working conditions, the company employs
health and safety professionals, who possess the necessary
experience. The company also provides training programs
for employees and has implemented systems and
procedures for the application of safe working conditions.
The main goal of the company is achieving a level of
performance with zero occupational accidents.
LABOR RIGHTS
The company recognizes the importance of trade unions
and associations of workers in the process of improving
working conditions and protecting labor rights.
The company collaborates efficiently with both trade
unions – the Confederation of Independent Trade Unions in
Bulgaria and Podkrepa. Union representatives are involved
in the committees, dealing with working conditions in the
company, and have the opportunity to express their views
and proposals.
WATER
CONSERVATION
The company is operating on the territory of a karst area
that is supplying the neighboring villages with water.
The company is making exceptional efforts to reduce the
risk of water contamination, and has built facilities for
purification and filtration of wastewater.
Zlatna Panega Cement AD is a trading company with one-tier corporate governance
system. The Board of Directors includes five members and in 2017 it consisted of:
Alexander
Chakmakov
Chаirman of the
Board of directors
Adamantios
Frantzis
Chief Executive
Officer
Christos
Panagopoulos
Regional Director
Bulgaria and Turkey
70GOVERNANCE
BOARD OF DIRECTORS
Lukas
Petkidis
Regional Chief
Financial Officer,
Southeastern Europe and
Eastern Mediterranean
Konstantinos
Derdemezis
Regional Director,
Southeastern Europe
and Eastern
Mediterranean
APPENDIX
FINANCIAL STATEMENTS
MEMBERSHIPS AND PARTNERSHIPS
INDEPENDENT LIMITED ASSURANCE REPORT
71 APPENDIX
06
ENVIRONMENTAL PROTECTION PROGRESS REVIEW
72APPENDIX
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2017 2017
000 BGN
2016
63,262
5,077
14,389
956
95
83,779
(80,251)
3,528
763
(1,032)
(10,194)
1,316
(5,619)
15
(1,613)
(7,217)
417
(6,800)
(161)
16
Cement sale revenue
Clinker sale revenue
Concrete sale revenue
Rendering of concrete pump services
Others
Revenue
000 BGN
Cost of sales
Gross profit
Other income
Selling and distribution costs
Administrative expenses
Other expenses
Operating (loss)/profit
Finance income
Finance expense
Profit before tax
Income tax expense
Profit for the year
Actuarial (losses)/gains on defined benefit plans
Income tax effect
Other comprehensive income, not to be reclassified to profit or loss in subsequent periods, net of tax
Total comprehensive income for the period
(145)
(6,945)
65,907
3,005
-
-
167
69,079
(58,468)
10,611
1,609
(908)
(8,811)
(1,103)
1,398
242
(728)
912
(122)
790
(61)
6
(55)
735
STATEMENT OF COMPREHENSIVE INCOME
AS OF 31ST DECEMBER 2016 2017 2016
ASSETS
Long-term assets
Property, machinery and equipment
Investment property
Intangible assets
Investments in subsidiaries
Available-for-sale financial assets
Other financial assets
Short-term assets
Inventories
Trade receivables and other receivables
Receivables from related parties
Loans to related parties
Prepayments
Cash and cash equivalents
Non-current assets held for sale
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Issued capital
Legal reserve
Retained earnings
Total equity
Non-current liabilities
Interest-bearing loans from banks
Finance lease liabilities
Restoration provision
Retirement benefit liability
Deferred tax liability
Current liabilities
Trade and other payables
Interest-bearing loans
Finance lease liabilities
Payables to related parties
Loans from related parties
Income tax obligations
Total liabilities
TOTAL EQUITY AND LIABILITIES
136,905
1,406
267
1,661
47
300
140,586
22,357
10,963
16
144
50
367
33,897
691
34,588
175,174
55,941
3,217
72,307
131,465
9,265
160
1,817
1,198
894
13,334
9,966
18,982
105
764
558
-
30,375
43,709
175,174
000 BGN 000 BGN
73 APPENDIX
BALANCE SHEET
129,241
1,406
325
16,605
47
219
147,843
21,188
10,274
15,005
9,213
105
202
55,987
-
55,987
203,830
55,941
3,217
96,864
156,022
19,197
-
4,476
812
1,327
25,812
10,248
10,974
-
710
26
38
21,996
47,808
203,830
74APPENDIX
FOR THE YEAR ENDED 31ST DECEMBER 2016 2017 2016
OPERATING CASH FLOW
FOR THE YEAR ENDED 31ST DECEMBER 2017RETAINED
EARNINGSTOTAL
ISSUED
CAPITAL
As of 1st January 2016
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
As of 31st December 2016
As of 1st January 2017
Merger effect
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Аs of 31 December 2017
96,129
790
(55)
735
96,864
(17,612)
(6,800)
(145)
(145)
72,307
55,941
-
-
-
3,217
-
-
-
55,941 3,217
-
-
55,941
-
-
3,217
LEGAL
RESERVE
000 BGN 000 BGN
SEPARATE STATEMENT OF CHANGES IN EQUITY
SEPARATE STATEMENT OF CASH FLOW
155,287
790
(55)
735
156,022
(17,612)
(6,800)
(145)
(145)
131,465
912
11,118
117
18
20
540
57
78
-
(242)
272
(5,930)
(2,238)
138
(20)
(600)
(413)
3,827
148
(11,455)
(92)
(8)
-
260
(11,147)
57,073
(49,568)
-
-
(266)
7,239
(81)
-
283
202
Profit before tax
Adjustments for reconciliation of profit before interest and tax to net cash
Non-cash:
Depreciation of property, plant and equipment
Amortisation of intangible assets
(Profit)/Loss on disposal of property, plant and equipment
Impairment loss of investment property
Movement in doubtful debt allowance
Movement in restoration provision
Expenses for employee benefit liability
Impairment of an investment
Interest income
Interest expenses
Working capital adjustments:
(Increase)/Decrease in inventories
(Increase)/Decrease in trade and other receivables
Increase in advances paid
Decrease in other financial assets
Increase/(Decrease) in trade and other payables
Income tax (paid)/received
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Loans to related parties
Proceeds from loans from related parties
Interest received
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
Repayment of borrowings
Payments under financial leases
Repayment of loans from related parties
Interest paid
Net cash used in financing activities
Net decrease in cash and cash equivalents
Merger effect
Cash and cash equivalents at 1st January
Cash and cash equivalents at 31st December
(7,217)
13,190
88
(121)
-
618
(2,659)
117
391
(2)
784
(872)
3,260
108
(25)
(1,860)
(38)
5,762
194
(3,450)
(4)
(79)
100
-
(3,239)
68,430
(70,353)
(99)
(193)
(781)
(2,996)
(473)
638
202
367
st
55,941 3,217 96,864 156,022
75 APPENDIX
ENVIRONMENTAL PROTECTION
PROGRESS REVIEW
CATEGORY INDICATOR
Climate Change
Alternative fuels
Additional indicators
Zlatna Panega Cement AD
* Direct CO emissions – emissions related to the decarbonization of the raw materials and burning of fuels in the clinker production process.
*** Indirect CO emissions – emissions released to the atmosphere by the power plants for the production of electricity consumed
at the cement plant. The data for the CO emissions of the power plants is average for the country.
CATEGORY INDICATOR
Natural Resources
Local impacts
* GAEA – Green Alternative Energy Assets EAD data included
2
2
TITAN Bulgaria
2
2015 2016
Raw material consumed
• for cement production, million metric tons (dry)
• for ready-mix, dry mortar and block production, million metric tons (wet)
Total heat consumption, TJ
Total electrical energy consumption, TJ
Total water consumption, million m
Recycled (externally) waste material, metric tons
Active quarry sites with biodiversity issues
Active quarry sites with biodiversity management plans
3
474705
711.96
886.95
20.55
6.97
12.18%
83%
2.43
4.34
612.70
1092.18
13.92
24.81
3190.15
5686.63
25.82
46.03
7.08
12.63
0.50
0.89
0.001
0.001
-
-
-
-
0.011
0.00000002
2140
20429
74.82
46981
179449
287
462871
715.91
871.81
27.2
11.15
5.24%
84%
1.8
3.20
588.57
1045.22
47.30
83.99
2205.92
3917.43
24.24
43.05
1.96
3.48
0.82
1.46
0.002
0.003
0.01
0.02
0.50
0.89
0.003
0.000000005
2104
22739
73.05
44998
156771
293
2017
Total direct CO emissions (gross), million metric tons
Direct* CO emissions (gross), kg/t cementitious**
Energy efficiency, kcal/kg Clinker
Alternative fuel substitution rate, %Thermal basis
Biomass in kiln fuel, % Thermal basis
Alternative raw materials (clinker and cement), %Dry
Clinker to cement ratio
Total dust particulates, metric tons
Dust particulates, g/t clinker
Total NOx, metric tons
NOx, g/t clinker
Total SOx, metric tons
SOx, g/t clinker
Total CO, metric tons
CO, g/t clinker
Total TOC, metric tons
TOC, g/t clinker
HCl, metric tons
HCl, g/t clinker
HF, metric tons
HF, g/t clinker
Hg, metric tons
Hg, g/t clinker
Cd+Tl, metric tons
Cd+Tl, g/t clinker
Total (Sb, As, Pb, Cr, Co, Cu, Mn, Ni, V), metric tons
Total (Sb, As, Pb, Cr, Co, Cu, Mn, Ni, V), g/t clinker
POPs, grams
POPs, g/t clinker
Total heat consumption, TJ
Total alternative fuels, metric tons
Total electrical energy consumption, Gwh
Total indirect*** CO emissions, million metric tons
Total water consumption, million m
Water consumption, lt/t Cement
2
2
2
3
2015 2016 2017
898466
332388
2140
77.18
211289
6767
1
1
885543
286253
2104
76.09
191679
2699
1
1
883834
338 057
2133
77.61
210915
1180
1
1
*
*
474234
739.01
881.45
17.95
7.20
5.06%
86%
0.84
1.49
518.84
921.31
16.12
28.62
1605.45
2850.78
22.25
39.51
2.79
4.96
0.19
0.34
-
-
-
-
-
-
0.016
0.00000003
2132
12878
74.91
46143
172753
308
** Cementitious - as defined by WBCSD/CSI
76APPENDIX
MEMBERSHIPS AND PARTNERSHIPS
TITAN Bulgaria is a member of the following
organizations in Bulgaria:
Bulgarian Association of Cement Industry (since 2007) www.bacibg.org
Bulgarian Association of Aggregates Producers (since 2009) www.bapim.org
American Chamber of Commerce and Industry (since 2010) www.amcham.bg
Hellenic Business Council in Bulgaria (since 2010) www.hbcbg.com
Bulgarian Federation of Industrial Energy Consumers (since 2013) www.bfiec.org
Bulgarian Chamber of Mining and Geology (since 2015) www.bmgk-bg.org
Education Bulgaria 2030 Association (since 2017) www.edu2030.bg
At Group level TITAN cooperates with
international organizations such as:
CSR Europe www.csreurope.org
European Cement Association (CEMBUREAU) www.cembureau.be
European Round Table of Industrialists (ERT) www.ert.eu
UN Global Compact www.unglobalcompact.org
World Business Council for Sustainable Development (WBCSD) www.wbcsd.org
World Economic Forum www.weforum.org
77 APPENDIX
78APPENDIX
ZLATNA PANEGA CEMENT AD
5760 Zlatna Panega
2 Shipka Str.
Phone: + 359 2 882 01 01
Phone: + 359 2 976 00 70
www.titan.bg