© Holcim Romania 2009 - CEI

© Holcim Romania 2009

Build the Future on Solid Foundations

CEI Summit Economic Forum, Bucharest

November 12, 2009

Markus Wirth, Holcim Romania

2

12.11.2009/SC© Holcim Romania 2009

Agenda

The Romanian Cement Industry

Holcim (Romania)

The role of the authorities

1

2

3 The economic environment

4

Our role in the public policy-making process5

3


The Romanian Cement Producers

Alesd

Turda

Tg. Jiu

Campulung

Hoghiz

Medgidia

Deva

Bicaz

Fieni

Lafarge Ciment (Romania)

Holcim (Romania)

Carpatcement Holding

Romanian Cement Industry

Cement consumption

2008 : 11.1 mil tones

(domestic production and imports)

4


Cement industry is the basis of an entire economical sector: constructions

� important influence on the economy/society/country� workforce – the cement producers are job providers� investments into people, training and development,state-of-the-art technology, environmental friendly solutions


� lobbying activities and initiatives throughdifferent associations (CIROM, FIC, APPR,APPA)

� important contributors to the state-budget(taxes, royalties)

5


Co-processing of waste in Romania – a service for the society

27,700

40,000

60,000

100,000

150,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2004 2005 2006 2007 2008 Estimat


[t]

2008 estimate

6


Our key objective is the creation of values

We attach great importance to sustainable development. Our strategy is focused on three dimensions:

Environmental ProtectionEnvironmental Protection

Social ResponsibilitySocial Responsibility

Economic GrowthEconomic Growth


7


1996

Arad

Sibiu

Timisoara

Tg.MuresGligoresti

Chitila

Piscani

Rancaciov

Pitesti

Pipera

ZarnestiBrasov

Ploiesti

Craiova

Cluj I

Satu Mare

Oradea

Progresul

2006

AleşdCâmpulungTurda Brasov

1997 1998 1999 2000 2001 2002 2003 2004 2005 2008

C-lung

2007

PantelimonPitesti

Alesd

Brasov

Agrocomp

Stancesti

Cluj II

Campulung Muscel

Estagre

2009

Tunari

Clinceni

Cement plant

Mobile concrete plantEnvironmental Friendly Concrete Plant

Aggregates plantSpecial Binders plant

Holcim Romania Holcim Romania’s presence on the market

8


Holcim Romania…

…was the first company in its field to receive a triple certification for IMS (Integrated Management System)

� 9001 Quality Management

� 14001 Environmental Management

� 18001 Occupational Health and Safety

ISO 9001 (Quality)

OHSAS 18001 (OH&S) ISO 14001

(Environment )

Holcim Romania

9


Economic growth – Our input so farHolcim Romania

44.1

163.8

122.8

2002-2004

Mil €

52.8

221.0

-

2.1

4.0

107.5

11.9

125.6

0.85

296

2007

Mil €

37.732.430.9Direct contributions + paid taxes

296.8139.6107.4Total amount of goods and services purchased

1.6-0.9Other investments

1.13.41.4Environment investments

5.51.50.5Waste co- processing

138.237.617.6Business expansion

4.513.813.7Modernization

150.956.334.00Total investments, of which:

0.930.70.5Training

372.3220166.5Net Sales

2008

Mil €

2006

Mil €

2005

Mil €

10


Social responsibility

Various programs for the benefit of communities:

� health and safety (awareness campaigns, medical care)

� investments in school/education (trainings, apprenticeship school,scholarships)

� building and rehabilitation of kindergartens/schools, playgrounds

and recreational facilities

� local sports competitions

Holcim Romania

11


Environmental protection

� reduction of atmospheric emissions by using the best availabletechnology (dust filters, low NOx emission burners, etc)

� rational usage of non-renewable resources� co-processing waste into alternative fuels and raw materials� supply of environmental friendly products (composite cement)� rehabilitation of former industrial sites/quarries

� water recycling and treatment units

We promote, sustain and apply a robust environmental policy :

Holcim Romania

12


13


Inaction is the riskiest response to the uncertainties of an economic crisis…

Source: BCG & Harvard Business Review February 2009

Economic Environment

14


Despite having great results in the previous years, most of the companies are facing the tough consequences of the crisis!

Be prepared to overcome the downturn

� Cost cutting and adjustment of fixed costs in all areas

� Promoting new products → cement with mineral components

� No new capital investments will be made to increase capacity

� Spending on replacement and rationalization reduced to a minimum

Then…what do we do?

Look beyond the crisis

� Prepared to meet the market requirements with the modern production capacities

� Increased demand for construction materials and infrastructure projects →main driver of growth

Make people understand the situation

� Internal buy-in and engagement

Economic Environment

15


It’s not about the talking, it’s about the walking! The role of the authorities…Requirements

Increase visibility

Set direction

� Create transparency in the public administration sector

� Improve the administrative processes

� Transparent public procurement processes

� Plan everything on long term, set targets, allocate proper resources

� Align the existing economic, fiscal and monetary laws internally, considering the EU norms

� Use best practices and initiatives of other countries

� Systematic monitoring of the on-going

activities/projects

� Tracking the results

Drive for results

?

The Role of the Authorities

16


What should the Government do…

� Ensuring with priority, through the state budget, the co-financing necessary to the public projects financed from structural funds; define multi-annual projects

� Meeting the contractual obligations - payments

� Setting infrastructure as a priority

� Rebuilding confidence of foreign investors into Romania

� Stabilizing the political system

17


Romania : opportunities

TourismTourismLiving Living spacespace

Production Production of goodsof goods

Huge potential to further develop

Transport/Transport/

InfrastructureInfrastructure

AgricultureAgriculture

The Role of the Authorities

18


Involvement of the private companies in the public policy-making process

� Foreign Investors Council (FIC) – with task forces (e.g. Infrastructure)

� Chambers of Commerce� Associations

Partner to and communication with the Government and the public Authorities through :

We are prepared to continue with the communication →

hear us and also LISTEN to US !

Our Role

Documents

© Holcim Romania 2009 - CEI