apresentação institucional vpar - ficem · the only closed capital company in latin america to...

Institutional presentation

In action towards the future

of history92 years

Growth strategy:

Expansion, optimizationof assets and acquisitions

The only closed capital company in Latin America to receive and maintain Investment Grade by Standard&Poors, Fitch Ratings and Moody's

2005

2006

2007

Confirmed

BBB

BBB-

Baa3

Obtained

Aug 2009

Sep 2009

May 2009

Investment grade

http://www2.standardandpoors.com/portal/site/sp/en/us/page.home/home/0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0.html�

Recognition

Third best-positioned Brazilian company in the global ranking of the 200 companies with the best reputation2009 - Instituto Reputação

One of the 100 companies from emerging countries which are able to compete with multinationals from rich countries2008 - Boston Consulting Group

Best Family-Owned Company in the World2005 - IMD Business School and Lombard Odier Darier Hentsch Bank

20072008

2009

30.435.0

28.6

Net revenues (R$ billion)

Votorantim GroupConsolidated performance 2009

Capex (R$ billion)

To ensure the growth and sustainability as a large family-owned group, respected and recognized in the community where it operates, focused on the creation of commercial, environmental and social value through:

Ethical values which guide responsible business conduct

Highly competitive businesses

Pursuing creative, innovative solutions for its portfolio

Motivated high-performing people

Votorantim IdentityVision

Solidness Pursuing sustainable

growth and value creation

Always acting responsibly and transparentlyEthics

Respecting people and always being ready to learn

Respect

Entrepreneurship Growing with

audacity, making, innovating, investing

Unit is strenghtUnity

Votorantim Identity Values

Qualities embedded in actions, decisions and relationships with different public groups.

Votorantim Identity Code of Conduct

Guides the organization´s relationship with all public groups

Expresses commitment to ethics in business

Daily tool and reference for commercial partners

Ombudsman analyses and forwards questionson the Code of Conduct

Guarantees the confidentiality of information, preserves the identity of the people involved and ensures that the subject will be treated at the approprate level within the organization

Ombudsman0800 8911729

Votorantim IdentitySustainability principles

To be recognized by society as a socially and environmentally responsible company .

To have sustainability as a strategy, directing governance, management, education, decisions and investments – creating value.

To increase the commercial, social and environmental results consistently, pursuing efficiency and reliability in the operations and bringing them into line with world class standards.

To be recognized as a company which attracts, develops and retains talents to create value and build a fair and inclusive society.

To be committed to the well-being, health and safety of employees, clients and partners.

To make a contribution to the development of the communities in which it operates.

To encourage the cooperation and the participation of employees and interested parties in building partnerships and joint efforts to generate mutual value.

The principles express the Group´s commitment to sustainability. Being sustainable for us means be able to ensure the continuity and growth of the businesses in the long term, motivating the interested parties in advance and incorporating them to the company’s objectives.

Strategic managementOperational excellence

The Votorantim Management System(SGV) performs an important role in integrating the Business Units and the formation of a Unique Group.

Results: Capturing synergies, transferring skills between the companies and the constant pursue of best practices.

Integration: Specialist working teams (themed teams) focused on opportunities which bring benefits to the whole Group.

Unity: Standardizing processes, systems and tools, respecting the specific nature of each business and strengthening the culture of the single Group.

Sustainability: Retaining and sharing knowledge by integrating professionals from the different Business Units.

Integrated actions to promote, sustain and accelerate the development of employees and, at the same time, encourage the desired business culture. These are brought together in the Votorantim Development System (SDV)

Strategic management Developing people

Alert Movement and Golden Rules: initiatives to make workers aware of safety and information to encourage working under nonnegotiable security standards

Academy of Excellence: initiative to develop leadershipand improve technical skills, with 3,600 participations in 2009

Leadership CenterMineral and Metallurgy School Maintenance SchoolSafety School (2010)

Movement: organizes and encourages the mobility of professionals

Cement

One of the 10 largest cement plants in the world

Products: Cement, concrete, aggregates, mortar, lime and agricultural lime

Brands:Votoran, Itaú, Poty, Tocantins, Aratu,Votomassa, Matrix, Engemix, St. Mary’s, Suwannee, CBM, Prairie and Prestige

Market: Basic construction material

Employees: 11,700US / Canada

Brazil

Among the companies with the lowest production cost in the segment

Industrial operations in 9 countries: Brazil, Bolivia, United States, Canada, Chile, Argentina, Uruguay, Paraguay and Portugal

20072008

2009

18.1 20.8 20.7

4.7 4.2 3.5

22.8 25.024.2

Volume (million)

Votorantim Cimentos is a pioneer in burning and destroying waste (tires, contaminated soil etc.) in cement kilns in Brazil and has one of the lowest rate in the world for issue per ton of the product in the sector.

Economic performance

Cement

Brazil: 40 production units and 90 concrete centers

Bolivia: 1 plant (Itacamba Crushing)

North America: 6 cement plants, 32 aggregates and 115 concrete centers

Chile: 1 equity stake

Argentina: 1 equity stake

Uruguay: 1 equity stake

Paraguay: 1 equity stake

Portugal: 1 equity stake

Cement: 36 million t/year

Concrete: 12 million m3/year

Aggregate: 29 million t/year

Production units

Production capacity

USA

Expansion projects

Existing plants

Reactivated plants

ConcreteGreenfieldsBlocks

Aggregates

International expansionNew cement crushing (Sepetiba-RJ) New cement plant (Vidal Ramos-SC) – 2010Increase efficiencies to maintain low production costs

In Action for the future

Cement

20072008

2009

0.7

1.3

0.7

20072008

2009

4.1 5.75.8

1.52.0

1.65.6

7.47.7

Net revenues (R$ billion)

US/CanadaBrazil

Capex (R$ billion)

Xambioá - Tocantins

Cement plant – increasing by 750,000 tons of cement by year

95 direct 200 indirect

November 2009

Votorantim Cimentos

InvestmentsMain projects in 2009

Project location

Description and increased capacity

Jobs

Start-up

Kiln Nobres - MT

Pozolana kiln and cement crushing –increased by 300,000 tons of pozolana a year


July 2009

Votorantim CimentosProject location


Jobs

Start-up


Kiln pozolana and CrushingPorto Velho - RO

Pozolana kiln and cement crushing – increased by 370,000 tons of cement a year


August 2009

Votorantim CimentosProject location


Jobs

Start-up


POTY PAULISTA

XAMBIOÁ

PORTO VELHO

BARCARENA

SEPETIBA

VIDAL RAMOSIMBITUBA

SALTO

BARAÚNA

Unidades de8 New Plants in Brazil up 2013

35 Plants

NOBRES

CORUMBÁ

SOBRADINHO

PINHEIRO MACHADOESTEIO

ITAJAÍ

RIO BRANCO DO SULSALTO DE PIRAPORA

CUBATÃO

VOTORANTIM VOLTA REDONDA

CANTAGALO

ITAÚ DE MINAS

LARANJEIRAS

SOBRAL

RIBEIRÃO GRANDE

MARANHÃO

PARÁ

MATO GROSSO

PARANÁ

GOIÁS

BAHIA

CEARÁ

CUIABÁ

New Projects:

Paraná - 2 million t/yearGoias- 2 million t/yearMato Grosso- 1,2 million t/yearBahia- 1,2 million t/yearCeará- 750 thousand t/yearMaranhão- 750 thousand t/yearPará (2 plants)- 1,950 million t/year

Social performanceInstituto Votorantim

Results

Guides and oversees external social investments and the companies’ relationship with the community

Encourages principles and good sustainability practices

Encourages debate and the practices of Corporate Social Responsibility in the Business Units

Grades and organizes the public groups

Monitors actions and communication

Focus of attention: young people aged 15 to 29

522,000 young beneficiaries

216 municipalities throughout Brazil

148 projects supported

External social investment(R$ million)

20072008

2009

44.8

47.1

49.4

Routes: suggest paths for the future, offering young people opportunities in the fields of Education, Work, Culture and Sport

38 projects and 11,200 children and adolescents served

Creation of 4 business plans and 11 career plans: approval of 14

VIA - Votorantim Infancy and Adolescence: Passes on Income Tax resources to the Funds for the Rights of the Child and Adolescent to strengthen the civil rights and protection network for young people

Generation Attitude: Technical and financial resources to encourage outstanding talents in various projects


Education Route

Raising schooling for the continuous development and combating pupils falling behind in their classes and leaving school

Highlight: Votorantim Partnership for Education: 93 municipalities

Work Route

Access to and qualified insertion in the job market

Highlight : Future in Our Hands

Culture Route

Expanding access to artistic experiences in all areas and supporting local projects

Highlight : Votorantim Cultural Democratization Program

Sport Route

Activities with an educational focus and improving infrastructure

Highlight : Volleyball Friends(FD)

16 projects13,000 young people

45 projects 491,000 beneficiaries

4 projects3,400 young people

40 projects 2,700 young people


Environmental performanceCommitment to reducing impacts

Operations directed by the conceptsof Clean Production and Ecoefficiency:

Lower use of natural resources

Greater recycling in the production chain

Protecting biodiversity

Investment of R$ 237 million in 2009, 53% of which on encouraging environmental preservation initiatives

Cleaning up pollution

Environmental education

Managing resources

Managing waste

Preservation

Reforestation

23%

1%

14%

6%53%

3%

Environmental investment (R$ million)

Distribution of investments

20072008

2009

192.4

302.0

236.8

Founder member of GHG Protocol which has been measuring emissions since 2005

Sale of 61,500 tCO2eq carbon referring to projects based on the Clean Development Mechanism (MDL)

Fibria was the first Brazilian company from the pulp and paper segment to receive Carbon Footprint certification in all the production stages in Jacareí (SP)

Votorantim Cimentos has one of the lowest rate in the world for issue per ton of the product in the sector.

Energy Efficiency Program led to savings of 5,800 TJoules in 3 years, equivalent to 3.8% of consumption in 2009.

Biomass has replaced non-renewable sources which have a high potential for emissions

Atmospheric emissions

Production capacity

Environmental performanceManagement of impacts

Fibria is the world reference in terms of low consumption (30.9 m3 per dry ton of pulp)

Water

Environmental performanceResponsible growth

Cimentos: the company is a pioneer in burning and destroying waste (tires, contaminated soil etc.) in cement kilns in Brazil.

Co-processing

Environmental education programs for internal and external public groups

The Environmental Nursery Center and Environmental Educations Centers

Environmental educationtal

Creation of a green belt in the Resende Steel Plant(RJ), with the planting of 250,000 seedlings of native species

Restoration of the river bank forests in the Barra Mansa (RJ) plant, with the planting of 18,000 seedlings of more than 70 native species.

Biodiversity

Our CO2 emission reduction strategy includes :

Investment in research and development in order to be able to increase cimenticious (reducing use of clinker) without changing and even improving the performance of our product.

Invest in technologies that improve thermal efficiency and prioritize use of more energy efficient kilns.

Optimize our energy matrix, using more biomass and industrial waste with lower emission factors (kg CO2/Kcal).

Optimize the efficiency of the existent small hydroelectric plants

New small hydroelectric plants

VC CO2 Policy and Reduction targets

History of Technical Evolution in Votorantim Cimentos

1970 – Installation of the first 4 stage kiln in Brazil (2000 ton/day Santa Helena)

1975 – Installation of the biggest kiln in Brazil (3500 ton/day Santa Helena)

One of the first Brazilian companies to ban wet kilns and now does not have any wet kilns in its operations (Brazil, USA and Canada).

Significant CO2 Reduction Data from Porto Velho plant:

Production: 750.000 tons of cement

Start up: 1st half of august - 2009

800657 627 597

400

CASE PORTO VELHOkg CO2 / ton cement

Case Porto Velho

Reduction of50% of CO2 emissions!!

Estimative ofconventional

plant

Emission of CSI companies

Emission of VC Global

Emission of VC Brazil

Emission ofPorto Velho

plant

Examples from Votorantim Cimentos- Hot disc

Capacity: 1.500 t/month



Capacity 3.000 t/month

Use of waste fuel in Rio Branco



Solids (SPL and iron waste)


Shreded Tires

Whole Tires

Petroleum Sludgesand other Sludge

SPL

CSS 10 _ Prepared solidSubstituion Fuel

Liquids andSolvents



Capacity: 3.000 t/monthCapacity: 100 t/month



Petroleum Sludge andother Sludge s

CSS 40

Alternative Raw Material

Rubber Bags

Tires

SPL

Use of waste fuels in Itaú de Minas

Alternative Fuels – Conolidated VC Brazil

Use of alternative fuels in all plants.

Go from current 350,000 t/year to 1,000,000 in 3 years.

Some figures from Brazil 2009:

950,000 t/year (withoutbiomass)- VC aprox. 40%

Alternative raw material: 29%

Alternative fuel: 52%

Tyres: 19%- VC aprox. 80%

1,6%3,6%

15,5%17,1%

20,1%

15,9%

0%

5%

10%

15%

20%

25%

1990 2000 2005 2006 2007 2008

% T

herm

al s

ubst

itutio

n

Rate of thermal energy substitution for waste and biomass (VC Global- Brazil, USA and Canada)

Increase of 88% in substitution for alternative fuels!!

82,0%

76,3%

68,5%

70,7%

73,6%72,1%

60%

65%

70%

75%

80%

85%

1990 2000 2005 2006 2007 2008

% o

f clin

ker i

n ce

men

t

Clinker/ Cement Factor (%) (VC Global- Brazil, USA and Canada)

Reduction of11% in clinker/cementfactor

4.448

3.4173.757 3.806

3.467 3.520

0

1.000

2.000

3.000

4.000

5.000

1990 2000 2005 2006 2007 2008

MJ/

ton

clin

ker

Specific heat consumption in clinker production(VC Global- Brazil, USA and Canada)

Reduction of21% in thermalconsumption!!!

736

653

602

624 625 622

736

649

584601 597 603

-25

-20

-15

-10

-5

0

500

550

600

650

700

750

1990 2000 2005 2006 2007 2008

kg o

f CO

2/ to

n ce

men

titio

usSpecific CO2 Emission

Gross Net Reduction

Red

uctio

n (%

)

VC CO2 Emissions Inventory(VC Global- Brazil, USA and Canada)

Reduction of18% of CO2 emissions

CDM Project - Cubatão

Registration date: December 28th 2006

Summary: The project consists in replacing fuel oil with natural gas in the blast furnace slag drier at Votorantim Cimentos, in the plant of Cubatão - SP, contributing to mitigation emission of greenhouse gases.

Approved methodology: AMS.III-B – Substitution of Fossil Fuels

Volume of CO2 equivalent reduced: 14,518 ton

Crediting period: 2004 to 2010

CDM Project – Pedra do Cavalo

Registration date: December 31st 2006

Summary: The project consists in building electrical substations and in manufacturing and installing turbines and generators for a hydroelectric generation center built on a reservoir, whose main objective was supplying water to the city of Salvador.

Approved Methodology: ACM0002 - “Consolidated baseline methodology for generation of electricity from renewable sources linked to the main grid” – Version 6 of May 19th 2006

Volume of CO2 equivalent reduced: 416.395 ton

Crediting period: 2005 to 2011

In 2005, Votorantim Cimentos was awarded the CNI Prize in the

Environmental category.

Project: Co-processing of tires in Rio Branco

In 2008 Votorantim Cimentos was awarded the“Best Carbon Management” by Época magazine

Climate Change Prize

In 2009 Votorantim Cimentos was awardedas a “Leader Company in Climate Policy" by

Época magazine

Project: Porto Velho

Company Contact Data

Patrícia Monteiro Montenegro

Manager for Environment and Co-processing

E-mail: [email protected]

Site Votorantim Cimentos:

www.votorantimcimentos.com.br

mailto:[email protected]�

http://www.votorantimcimentos.com.br/�

Towards a Sustainable Cement Industry !

apresentação institucional vpar - ficem · the only closed capital company in latin america to...

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