Integrated report 2014

Transcription

Integrated
Report
2014
2
VOTORANTIM CIMENTOS
List of Contents
How to read this report Business Model Management Letter
Performance Highlights for 2014
2014 Integrated Report
4
5
8
11
Who we are
Market Context
Corporate Identity
Material Issues
Business Overview
Economic and Financial Performance
Future Trends and Prospects
12
25
28
30
35
93
100
Economic, Environmental and Social Performance
GRI Content Index for ‘In accordance’ – Core
Material Issues and GRI Aspects
UN GLOBAL COMPACT PRINCIPLES
CORRELATIONS – IIRC CAPITALS
About the report
Letter of Assurance financial statements
report production
CrEdits 102
116
144
148
149
150
151
153
166
167
3
2014 integrated report
How to read this
report
[G4-17 and G4-31]
This report focuses on the strategic aspects of our operations, both
financial and non-financial.
The full version of the report is available on the Votorantim Cimentos web
site at: www.votorancimentos.com
The preparation of the report followed the rules established by the
International Financial Reporting
Standards (IFRS) for the consolidation of the financial and non-financial information and indicators. The
report does not include information
on the company’s minority interests
in Argentina, Chile and Peru, its SAC
joint-venture in the United States
or the assets put on sale in China.
The scope of the consolidation has
changed compared to the 2013 report
due to the inclusion of the company’s
shareholding in Artigas, Uruguay and
the exclusion of its shareholding in
Suwannee, United States. [G4-23]
The report contains information on
the company regarding: business
strategy; products and services;
performance; governance; market
context; risk management; environmental practices and initiatives; and
relations with the community and
key stakeholder groups.
The electronic version of this report
will be distributed to the company’s
employees and representatives of
other stakeholder groups with which
the company maintains relations,
such as, investors, government, economic and market analysts, community leaders, civil society and trade
organizations, regulators, the media,
among other groups.
4
We would be pleased to have your
feedback to assist us in improving
our reporting, and will respond to
questions, comments or suggestions
and provide further information on
request.
Please contact us by e-mail at: ri@
vcimentos.com.
We hope you find the report a good
read!
VOTORANTIM CIMENTOS
MATERIALITY
OUR VISION
Customer
Focus
Empowered
People
Best in Class
Operations
Sustainable
Practices
• We drive our decisions
based on customer needs
• We develop innovative
products & solutions
in partnership with our
customers
• We have all areas of
the company focused on
improving customer service
• We value and recognize
leaders who lead through
others – creating strong,
diverse and engaged teams
• We want people who have
the autonomy to take action
and use the Integrated
Management System (IMS) to
leverage performance
• We work together to
develop creative solutions
and make things happen
• We constantly monitor
our performance and
are obsessed with
continuous improvement
• We make decisions
quickly and intelligently,
in a disciplined and
consistent manner
• We maximize
productivity in all areas
• Safety first!
• We are trustworthy
and ethical in our actions
according to law and
regulations
• We promote ecoefficiency through the use
of innovative products,
practices and solutions
• We foster local dialogue
and relationships with
communities to perpetuate
the Votorantim legacy
BUSINESS
MODEL
RESOURCES
ACTIVITIES
Financial capital
Intellectual and manufactured capital
Human capital
Social and relationship capital
Alternative sources of electrical
energy and fuel oils
Extremely high
Our head-office is in Brazil and we have operations in 13 countries in
the Americas, Europe, Asia and Africa. We speak many languages,
with many accents but we are united in a single voice, a single team,
with a common objective: to be a construction materials company
that is committed to customer success through excellence.
2
Supply chain
management
Regulatory
risks
Level of
importance
of economic,
environmental
and social
impacts
12
5
6
Community
relations
7
16 17
Government
relations
Air emissions (particulate
Matter, NOX, SOX)
4
Anti-corruption practices,
cartels and anticompetitive behavior
8
Economic performance:
economic value generated
and distributed
Contribution to
local development
Water consumption
14
Management and re-use
of construction waste and
reverse logistics for used
cement bags
Energy
efficiency
Level of importance for the decisions
and/or perceptions of stakeholders
Ethics, transparency
and integrity
CO2 emissions
13
15
11
Preservation of
biodiversity
High
3
9
10
Customer
satisfaction
Natural capital
Occupational health
and safety
1
High
OUR VISION
Extremely high
PILLARS
RESEARCH
AND PLANT
CONSTRUCTION
MINING
INPUTS
Investment
Labor
Equipment
Labor
Land
Fuel
Electrical Energy
Investment
GEOLOGICAL RESEARCH
RESEARCH AND DEVELOPMENT (R&D)
MARKET RESEARCH
PLANT CONSTRUCTION
DIGGING
DETONATING
LOADING
CRUSHING
STORING
clay,
limestone
(calcite and
dolomite)
aggregates
(sand and
gravel)
PURCHASE OF
materials for maintenance
and consumption, coal, other
fossil fuels and chemical
additives.
INDUSTRIAL
PROCESS
SALES AND
LOGISTICS
Equipment, labor, mineral
deposits, water, electrical energy,
industrial waste from other
production processes, by-products
such as ash, slag.
Investment
Equipment
Fuel
Labor
GRINDING
STORAGE SILOS
KILN
MILL
MIXER
COOLER
cement
concrete
aggregates
complementary
products (mortar,
lime, agricultural
lime)
STORAGE
TRANSPORT
RESULTS
Removal of vegetation
Noise
ENVIRONMENTAL
SOCIAL
Social and environmental education
Archaeological and paleontological
preservation
Rehabilitation of degraded areas
ECONOMIC
Positive impacts
Negative impacts
Overloading of local infrastructure
Generation of employment and i ncome
Modernization of public administration
Generation of taxes related
to contracting of services during
construction
Impacts on the soil,
biodiversity and communities
Rehabilitation of degraded
areas and biodiversity
management
Maintenance waste
Financial compensation for
mineral exploration (CFEM)
Generation
of taxes from the
acquisition of products
and services.
Use of waste and
industrial by-products as
alternative sources of
energy and raw materials
in the production process
Waste, CO2 emissions,
other air emissions,effluents,
impacts on the soil
Generation of employment
and income
Noise and CO2 emissions
Truck traffic
Generation of
employment and incom
Generation of taxes from the
sale of products and services
CUSTOMERS
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
INFRASTRUCTURE
PAVING
AGRIBUSINESS
RA
PRODUCTION AND APPLICATION
POSITIVE IMPACTS
N
NI
DELIVERY METHOD:
BULK
O
ST ES
ME AT
LI REG
G
G
A
VE
RT
KI ICAL
LN
NE
C
LIMRUS
ES HE
TO D
NE
CR
US
HI
NG
GR
IN
DI
NG
WO
MI
LL
SA
GR
EG
AT
ES
AG
LC
ITI
SA
CU
QU
GR
IC
KL
AL
IC
EM ES
CH ITIV
D
AD
E
LIM
IM
LT
U
RA
LL
IM
ES
XE
TO
C
ES
TO
NG
E
N
ME
N
IRO
HY
ST
AN
AD
HE
S
SI
VE
TO
MO
E
LL
FL
DR
AT
O
RE
U
BA
X
HO
ITE
DA
RD
OU
R
MO
GE
RO
NI
ZA
TI
IO
N
MO
LIM
HY
RT
AR
DR
LIM
AT
ED
LIM
 Agricultural lime
 Mortar
It corrects soil acidity, and
is used in agriculture.
It is used principally to
lay blocks or bricks and
for surface finishing.
Cement
Concrete
Aggregates
Complementary
Products (mortar,
lime) lime
MOROCCO
SPAIN
TURKEY
EP
ECH
CHINA
PERU
In Peru we own a
shareholding in a
limestone mine.
LE
ON
ITI
AD ELS
R
T FU
LN
R
NE
GR
GY
AL
AD
DI
TIV
IN
ES
MIDIN
LL G
A
TE
WA
R
CE
ME
URUGUAY
ES
NG
HI
US
CR
R
GG
EG
E
AT
S
AD
NC
RE
DI
TIV
HA
RD
EN
ED
CO
NC
RE
CO
TE
CI
N
S
SO
TR VIL
W
FT
U
A
C
ST TI
CO
E
ON
NC
RE
TE
ES
 Concrete floor
Concrete and
concrete blocks used
in paving outdoors.
TE
NT
CL
IN
KE
R
LIM
AI
ST
CH
EM
ICA
LA
OR
AG
They are precast and
used to build loadbearing walls.
ES
TO
N
PL
E
EA
AS
DD
TE
ITI
R
VE
BRAZIL
TUNISIA
INDIA
PO
AS
DD
ITI
VE
DE
S
CO
RA
TTA
FIN
ISH
ING
GR
IN
DI
NG
MI
LL
NT
SL
H
CE
ZZ
AG
ME
 Concrete
OL
Composed of a
mixture of cement,
sand, aggregatesand
water, it is the most
common construction
material.
AN
 White cement
NT
It is a type of
cement and is used
in construction
in general,
for industrial,
commercial and
residential surfaces
and floors.
III
 Hydrated lime
Substance with
binding power, used
in construction and
production of mortars.
 Lime paint
 Cement
More economically viable than
conventional paints, it allows
large areas to be painted at a
lower cost.
It is the basic component
of concrete and mortars.
It is used in all types of
construction.
OUR SUSTAINABILITY COMMITMENTS FOR 2020
SAFETY
• To ensure the effective adoption of the
Global Health and Safety Policy and the Life
Saving Rules
ECO-EFFICIENCY AND INNOVATION
• Environmental Policies: to ensure the
implementation of our Global Environmental
Policy and Green Rules
compared to 1990 levels
• To implement sustainable supply chain
standards
• Supply chain standards: to promote
sustainable supply chain standards by way
of our business units
• Water and biodiversity: to prepare and
implement water management plans for all
units in water-stressed regions. To ensure that
all mines have closure plans. To ensure that all
units in areas of high biodiversity value prepare
and implement biodiversity management plans
ETHICS AND COMPLIANCE
• Ethical Business Practices: to ensure
that all of our operations are carried out in
an ethical manner and in conformity with
the Votorantim´s Code of Conduct
ARGENTINA
TIV
CO
• To promote healthy working conditions
and zero harms environment for all our
employees. To reach zero fatalities LTI*
Rate for direct employees of less than 0.4
BOLIVIA
In Bolivia we own
a grinding mill.
CHILE
KI
CA
DI
E
ES
RT
AR
CANADA
NG
MI
NE
RA
LS
AG
HY
TO
GR
DR
NE
EG
AT
AT
F
ILL
ED
ES
ER
LIM
MI
ES
XE
T
R
ON
LIM
EF
E
ILL
ER
ST
OR
AG
MI
XE
E
R
R
Materials used for making
concrete and mortar. They are
also used in the production of
asphalt and for street paving.
USA
TI
ON
 Aggregates
GLOBAL
PRODUCT
RANGE
TA
EL
EC
I
TR
AD
 Concrete blocks
T
G
RA
MI
ZE
R
PR O LO
OG SS
RA
M
NE
ND
IN
MIDIN
LL G
R
NE
DI
TE
WA
CE
ND
MI
RI
OD
IN
TIV
NA
ER LS
T
AL FUE
ly
p
tu
s
TO
u
ca
ES
C
YA
LA
ND
CA
LIM
C
LIMRUS
ES HE
TO D
NE
E
LIM
GR
CONCRETING
G
MI L A Y N E
C
AG
BAGS
W
• Sustainable products and services:
to promote the implementation of new
sustainable solutions, products, services and
innovation – achieve a clinker/cement factor
of 72%
• Non-fossil fuels: to use 30% non-fossil
fuels in our cement plants
• CO2 emissions: to reduce our CO2
emissions per ton of cement by 25%
• Air emissions: to reduce dust, NOx and
SO2 emissions per ton of clinker to 65g,
1950g and 750g / ton of clinker, respectively
COMMUNITY ENGAGEMENT
• To ensure the implementation of
a community engagement plan in
communities where we operate that have a
high degree of social vulnerability
*Lost Time Injury **The clinker/cement factor, describes the ratio between total clinker consumption and total production of cement or cement products
RELATÓRIO INTEGRADO 2014
7
Management Letter
The beginning
of a new journey
In 2014 Votorantim went through
a period of great change and made
considerable advances. In the middle of the changes going on in our
production processes and business
activities, our management teams
around the world paid special attention to the issues which are key to
the company’s future. “Our Vision”
and strategic drivers were widely
communicated and discussed.
In 2014, we experienced
a year of substantial
positive transformation
and positioned ourselves
effectively as a company
with an increasingly
global reach.
We successfully implemented our
new governance structure, in line
with that for Votorantim Industrial as a whole. Although the new
structure is more decentralized, and
appropriate to conducting business
in an increasingly complex and global
market, it ensures that Votorantim’s
values and corporate identity are
preserved.
As a result of the new structure, we
established our own Board of Directors. The Board will be responsible
for defining and monitoring the
company’s mission and strategy and
monitoring its performance in order
to ensure its long-term business continuity based on adequate financial
returns and sustainable practices.
This is third report that Votorantim
Cimentos has published and distributed to a wide range of stakeholders
in the market and society. It provides
information on our vision and strategies and our activities and results.
In 2014, we carried out a significant
process of internal engagement.
Our leadership teams, in the various
countries where we operate, were
mobilized to build, together, a company that will be even better for our
employees, customers and society as
a whole. We reviewed our processes,
identifying the best practices in the
regions where we operate and transforming them into global policies.
This was the year in which we positioned ourselves, effectively, as a
8
[G4-1, G4-2 and G4-13]
company with an increasingly global
reach. With operations in North and
South America, Europe, Asia and Africa, we can respond to the growth
in cement consumption, both in
emerging markets with growth
potential, such as Turkey, Tunisia
and Bolivia, and mature economies
that are recovering, such as the
Florida and Great Lakes regions in
the United States and Canada.
We ended the year with net
revenues of R$ 12,884 million, an
increase of 6.1% compared to the
previous year, and a net profit of
R$ 1,141 million. We sold 37.8 million
metric tons of cement, 11.2 million
cubic meters of concrete, 28.3 million metric tons of aggregates and
1.8 million metric tons of mortar.
These results were achieved by hard
work, supported by our strategic
drivers of customer focus, empowered employees operational excellence and sustainable practices. We
implemented a new sales approach,
based on customer segmentation,
and improved our cost controls.
We are able to leverage competitive
advantages that have been constructed over a long period of time.
One of those advantages is geographical diversification. We are present in all the Brazilian regions and in
some of the major global markets.
This strategy allows us to maximize
opportunities for some regions and
reduce the negative impact of markets with more moderate growth.
VOTORANTIM CIMENTOS
Management letter
To make the most of these opportunities, the Board held in-depth
strategy discussions and, with the
support of its Advisory Committees, it was decided to prioritize,
for example, investments in the
faster-growing markets such as the
Northeast and Center-West Regions
in Brazil, Bolivia and Turkey, and
markets that were recovering, such
as the United States.
We moved ahead with our investment
plan, which is focused on expanding
production capacity, and ended 2014
with a cement capacity of 54.5 million
metric tons/year, of which 59% is
located in Brazil, our principal market.
We will continue to invest, preparing
the company for new growth cycles
in the various markets in which we
operate. We have entered into an
agreement to construct a new cement
plant in Bolivia and have approved
an investment to expand our units in
Brazil, Turkey and the United States.
In everything we do, we seek to
incorporate sustainability principles
and add value to our business and
customers. This positioning goes
far beyond simple compliance with
the legislation. We have developed
a number of initiatives, seeking, for
example, new energy sources and
the rational use of inputs, in a process of continuous improvement to
more work more efficiently. And we
want to do even more. We always
include sustainability considerations
in our business decisions and dayto-day activities.
Since 2011, Votorantim Industrial has
been a signatory of the United Nations Global Compact principles. Our
strategic plan encompasses other
voluntary commitments, such as the
Cement Sustainability Initiative.
In addition to our internal efforts to
disseminate this culture, we have
turned our gaze on the communities
where we are present. We have adopted measures to minimize the impacts of our activities and maintain
genuine and transparent relations
with our neighboring communities.
Safety is our highest priority. Despite
great advances, we deeply regret the
occurrence of three fatalities among
our employees and one fatality
involving contract staff. In addition,
there were seven fatalities of thirdparties in our distribution chain. We
seek to ensure that our workforce
has a safe environment in which to
do their jobs. In order to disseminate
our Global Health and Safety Policy
and “Rules for Life” safety program,
we mobilized our employees to participate in the event “Global Safety
Day” which from now on will be a
permanent fixture in the company’s
annual calendar of events.
Even though there is still room for
improvement in many areas, we also
have achievements to celebrate. One
of our most important achievements
during the year was obtaining investment grade ratings from the three
major rating agencies, Standard &
Poor’s, Fitch Ratings and Moody’s. This
will increase and diversify our access to
local and international investors.
We have established our goals for
2015 and the years to come. We seek
to continue to generate positive results and grow in the regions where
we operate even in the challenging
situation that lies ahead. We will
continue with our current investment plans, and will search for new
opportunities to expand our global
production capacity. We will also
seek to introduce innovations in our
range of products and services and
continuously improve our sales and
marketing approaches.
The opening of the company’s capital is still on the agenda and we are
prepared to make the move, waiting
only for the right moment in the
capital markets.
We will continue working towards
realizing our vision, paying special
attention to safety and employee
development, to ensure that our
people are always motivated,
focused, and proud to work at Votorantim Cimentos.
We would like to thank all our business partners who have contributed
to getting us here and would also reiterate our invitation to go forward
together, to create a solid foundation for a future which is increasingly promising for all of us.
Walter Dissinger
CEO of Votorantim Cimentos
9
10
VOTORANTIM CIMENTOS
Performance
Highlights for 2014
Annual cement production capacity at year-end was 54.5 million
metric tons, 0.6 million metric tons
higher than 2013, due to the expansion of the Xambioá (TO) plant
Net revenues for the year totaled
R$ 12,884 million, an increase of 6.1%
compared to 2013.
Adjusted EBITDA was R$ 3,493
million, practically unchanged
(-0.6%) compared to 2013.
Net profit was R$ 1,141 million, a
reduction of 17.9% compared to 2013,
due to increased financial expenses
(premium paid for bond repurchase
and higher interest rates in Brazil
(CDI)) and a lower operational result.
Quality Index of Products (IQP)
increased to 95%, an increase of 3%
over the previous year.
Continued to invest in new cement plants, in Edealina (GO),
with an annual capacity of 2 million
metric tons, and in Primavera (PA),
with an annual capacity of 1.2 million metric tons. These plants are
scheduled to start up operations in
the second semester of 2015.
In 2014, the Board approved the
following investments: (i) a brownfield project to expand the annual
capacity of our plant in Turkey by 1.2
million metric tons, as from 2017; (ii)
an integrated plant in Sobral (CE) with
an annual production capacity of 1
million metric tons, as from 2017; (iii)
a grinding mill in Pecém (CE) with an
annual capacity of 0.5 million metric
tons, as from 2017; and (iv) expansion
of the annual capacity of the North
American operations by 0.6 million
metric tons in Charlevoix, as from
2017. In September 2014 we signed
agreements with Cementos Molins
(Spain) and COCECA (Bolivia) and
initiated the construction of a new cement factory in the region of Yacuces,
Bolivia, with an additional annual production capacity of 0.9 million metric
tons, and start-up planned for 2016.
Invested R$ 67.8 million in environmental projects.
Invested R$ 16.38 million in longterm social projects and initiatives
(almost 35% more than in 2013),
which generated economic and
social value for the communities in
which we operate.
Obtained investment grade ratings on a global scale, from the three
main rating agencies: Standard &
Poor’s (BBB, stable outlook), Moody’s
(Baa3, stable outlook) and Fitch Ratings (BBB, stable outlook).
Implemented our global strategic
plan and established an integrated
financial model that will strengthen
the investments being made in the
regions, as well as a new sales approach in Brazil where the previous
product focus has been replaced by a
customer focus, enabling us to give
our total attention to the needs of
each segment and each customer.
Developed our Strategic Sustainability Plan and approved a formal
document containing Our Sustainability Commitments for 2020.
Expanded our Global Health and
Safety Policy.
11
Who we are
[G4-3, G4-4, G4-5, G4-6, G4-7, G4-8, G4-9, G4-16, G4-17 and G4-57]
We are the market leader
in cement in Brazil and
the eighth largest global
producer in terms of
installed capacity.
Company and Business
Profile
Votorantim Cimentos (VC) is a company of the Votorantim Group, one
of the largest and most traditional
Brazilian business organizations. We
are an industrial company that produces cement, concrete, aggregates
and complementary products such
as mortar and lime. Our operations
are vertically integrated and we have
a diverse and wide range of products
and services.
in Spain, Turkey, Tunisia, Morocco, India and China. In South America, we
operate through partnerships with
local and/or international companies
in Bolivia, Uruguay, Argentina, Chile,
and Peru.
At year-end 2014 we had 15,779
employees, including interns and
apprentices.
We are a 100% Brazilian-owned company. We started our business activities in 1933 in the city of Votorantim, in
the interior of the State of São Paulo,
with the initiation of the construction
of the Santa Helena cement plant.
We are the market leader in cement
in Brazil and the eighth largest global
producer in terms of installed capacity, according to data published in
the Global Cement Report 2013, and
excluding Chinese companies.
In addition to Brazil, we operate
in South America, North America,
Europe, Asia and Africa, through
shareholdings and partnerships. Our
head-office is in São Paulo (SP). Our
international activities are carried out
with the support of two holding companies: Votorantim Cimentos North
America (VCNA), in the United States
and Canada, and Votorantim Cimentos Europe, Asia and Africa (VCEAA),
12
VOTORANTIM CIMENTOS
13
Who we are
Our History
2012
2007 2009
Expanded in South
America with the
acquisition of
shareholdings in cement
companies in Chile,
Uruguay and Argentina.
Exchanged assets
with Cimpor,
expanding the
company’s
operations to include
Spain, Morocco,
Tunisia, Turkey, India
and China.
Expansion plan currently
underway in Brazil, Bolivia,
Turkey and the United States.
In Brazil, the goal is to add 5.3
million metric tons to our annual
installed cement production
capacity by the end of 2017.
2010-2011
Acquired a 21.21% shareholding
in Cimpor (Cimentos de
Portugal).
2001
2005
Installed cement production capacity
reached 22 million metric tons/year.
Initiated international operations
with the acquisition of St. Marys
Cement Inc. which has cement plants
in Canada and the United States.
Acquired the Charlevoix
and Dixon plants.
2002-2005
Expanded operations
in Brazil with the
acquisition of minority
shareholdings and the
diversification of the
product mix.
1977
Established a
leadership position in
the Brazilian market.
1933
Initiated the construction
of Votorantim Cimentos’
first operating unit, the
Santa Helena cement
plant, in the city of
Votorantim (SP) - Brazil.
2013-2017
1938
1936
Inaugurated
the Santa
Helena plant.
Votorantim Cimentos
was selected by public
tender to remodel
a viaduct in the
center of São Paulo,
called the Viaduto
do Chá. The original
metal structure was
replaced by one made
of reinforced concrete.
*Acquisition of a 4% shareholding in 2010 and the completion of an asset exchange with Lafarge in 2011 resulted in a total
shareholding of 21.21%.
14
VOTORANTIM CIMENTOS
Who we are
54.5
million
metric
tons
per year
Where we operate
Our global installed cement
production capacity.
We are present in all regions of Brazil
(VCBR). Overseas we have operations in 13 countries: United States,
Canada, Argentina, Bolivia, Chile,
Peru, Uruguay, Spain, Morocco, Tunisia, Turkey, India and China. In total
we have an installed cement capacity
of 54.5 million metric tons/year.
We do business in Brazil
and in 13 countries in
the Americas, Europe,
Asia and Africa.
In North America, we are represented by our subsidiary Votorantim
Cimentos North America (VCNA). We
operate in the Great Lakes region, both
in Canada and in the United States,
and in the southern United States, specifically in Florida. We have four cement
plant, two grinding mills, 110 concrete
centers and 44 aggregates plants and
have a 50% shareholding in a cement
plants through a joint-venture (SAC).
The joint-venture is not consolidated
in our results, in accordance with the
International Financial Reporting Standards (IFRS) rules.
In South America, besides Brazil,
we operate through shareholdings
in companies producing cement,
concrete, aggregates and mortar.
These companies are Cementos
Avellaneda, in Argentina, Itacamba
Cementos SA, in Bolivia, Cementos
Bio Bio SA, in Chile, and Cementos
Artigas, in Uruguay. We also participate in a green-field project in Peru.
In total these companies have five
cement plants, three grinding mills,
one clinker plant, 51 concrete centers,
18 aggregates plants and two mortar
plants. Of the companies mentioned
above, the only ones included in our
consolidated results are Cementos
Artigas, in Uruguay and Itacamba
Cementos SA, in Bolivia.
In Europe, Asia and Africa, we have
operations in China, Spain, India,
Morocco, Tunisia and Turkey, through
our subsidiary Votorantim Cimentos
Europe, Asia and Africa (VCEAA). In
these regions, we have 14 cement
plants, 8 grinding mills, 21 aggregates
plants and 1 mortar plant.
In Brazil we have 16 cement plants,
10 grinding mills, 103 concrete centers, 20 aggregate plants, 8 mortar
plants, and 1 lime plant.
In the global consolidated balance
sheet we have 34 cement plants, 22
grinding mills, 322 concrete centers,
86 aggregates units, one clinker
plant, 9 mortar plants and 60
limestone reserves with an average
useful life of more than 60 years.*
* These include three cement plants and two grinding mills in China.
15
Who we are
Global
network
THE DIAGRAM BELOW SHOWS OUR CEMENT PRODUCTION
[G4-4 and G4-8]
CAPACITY BY COUNTRY OR REGION
Great
Lakes
5.2
1.8
spain
florida
0.85
braZil
tunisia
3.2
3.0
china
5.9
Turkey
32.3
1.2
Morocco
India
1.2
peru
0.2
bolivia3
SÃO PAULO
COMPANY’S HEAD OFFICE
uruguay4
2.26
chile2
argentina1
0.5
Installed capacity in Mtpy
(million metric tons per year)
2.86
VCBR
SOUTH AMERICA7
VCEAA
VCNA
16 cement plants
5 cement plants
14 cement plants
4 cement plants
10 grinding mills
3 grinding mills
8 grinding mills
2 grinding mills
103 concrete centers
51 concrete centers
99 CONCRETE CENTERS
110 concrete centers
20 aggregates plants
8 mortar plants
2 mortar plants
1 mortar plant
1 lime plant
1 clinker plant
45 distribution centers
4 lime plants
1 limestone mine
1 49% shareholding in Avellaneda, Argentina. 2 16.7% shareholding in Bío Bío, Chile. 3 67% shareholding in the Itacamba plant,
Bolivia. 4 51% shareholding in Artigas, Uruguay. 5 Includes 100% of annual installed capacity of Suwannee, which was not consolidated in December 2013. 6 Includes 100% of annual installed capacity of Bío Bío and Avellaneda, which were not consolidated in December 2013. 7 Includes minority shareholdings.
16
VOTORANTIM CIMENTOS
Who we are
Products and Services
We offer a wide
range of products
and materials for the
construction sector.
We produce and market a wide range
of materials for the construction
sector. We have four main business
areas: cement, concrete, aggregates
and complementary products.
We sell various types of cements,
concretes and mortars, and also
crushed stone, lime, limestone and
other materials. We have a customer
base that ranges from retail outlets
(building supply stores) to large companies in real-estate development,
construction infrastructure projects
and industry.
A PRODUCT RANGE THAT IS
CONSTANTLY EVOLVING
Cement
This is our main product and our largest business. It does not restrict the
expansion of our other product areas.
Our annual cement production capacity is composed of 32.3 million metric
tons in Brazil, 0.7 million metric tons
in the remaining countries in South
America, 5.2 million tons in North
America and 16.3 million tons in Europe, Asia and Africa. Our investment
in research and development has
resulted in the creation of a number
of high-tech products with a variety
of applications. We always have a
product to meet the specific needs of
construction projects, regardless of
their size, in any of the regions where
we operate.
Concrete
Our concrete brand in Brazil, Engemix, is recognized as being one of the
largest companies in the segment in
Brazil. Our company is well-known for
the manufacture of dosed concrete
at specialized centers. It operates
more than 100 concrete centers in 15
Brazilian states. It has four product
ranges: general construction (concrete services and development of
new products for medium and large
construction companies); self-construction (small projects, with a focus
on retail services); housing construc-
17
Who we are
tion (large-scale real-estate development projects); and construction sites,
focused on large clients. In 2014, in the
region of Campinas (SP), we completed a successful pilot project to replace
our operational control system, which
includes the management of subsidiaries, contracts and services. The new
system will be extended to all of our
concrete operations in 2015, improving operational efficiency, which is an
important competitive differential in
this market. The goal is to make the
Engemix name be recognized as the
best brand in the concrete market.
In North America, we have 110 concrete centers of which 86 are located
in the Great Lakes region and 24 in
Florida.
In our operations in Europe, Asia and
Africa, we have 99 concrete centers,
of which 77 are in Spain, 6 in Morocco
and 16 in Turkey.
We also have 10 concrete centers in
South America, all located in Uruguay, through shareholdings.
Aggregates
In Brazil, we manufacture and
sell crushed stone and a variety of
grades of sand, for construction and
concreting. The product applications include the manufacture of
18
asphalt, concretes, pre-cast slabs,
reinforced concrete structures, precast concrete artifacts, concrete, and
materials for landfills, drainage, base
and sub-base of highways and paved
areas, among others.
Complementary Products
for the construction and
agribusiness sectors
In Brazil these products include mortars, hydrated lime, lime paint, blocks,
floor tiles, white cement and agricultural lime. We produce two ranges of
mortars under different brand names:
the Matrix brand which is a range of
standard mortars, and the Votomassa
brand, a range of adhesive mortars.
New products are launched every
year. We have nine production plants,
of which eight are for mortar and one
for lime. Projects for a further two
plant expansions have been approved,
one in Rio de Janeiro and one in
Pernambuco. In the agricultural lime
segment, we have an investment plan
to expand the existing plant in Xambioá (TO), and build two new plants in
the Northeast (one in Camaçari (BA)
and another in Recife (PE)), and one in
the Southeast (Seropédica - RJ). These
plants will come on-stream in the
next five years, and will complement
the five plants already operating.
In Spain we have one mortar plant.
VOTORANTIM CIMENTOS
Who we are
Sobral Cement Plant
Expansion and Investment
We plan to continue to grow and
expand our market share, in Brazil
and internationally. We are currently
implementing an investment plan
that began in 2007 and runs through
to 2017. The total investments
amounted to around R $ 10 billion
between 2007 and 2014 and a further
R$ 5 billion by 2017, and are distributed in all the company’s businesses.
In 2014, the total capital invested
(CAPEX) was R $ 1,276 million, of
which R $ 700 million were destined
to improvements in industrial plants
and other projects, and R $ 576 million to expansions of existing plants,
mainly in Brazil.
We completed the expansion of
the Xambioá plant in the State of
Tocantins. This plant is important
to enable us to meet the demand of
the retail self-construction market
sector in the North and Center-West
regions of Brazil.
We expanded the annual cement
production capacity at the Xambioá
(TO) plant by 600 thousand metric
tons, raising its capacity to 1.1 million
metric tons.
Also in these two regions, we continued with our investments in two
new cement plants, one in Edealina
Units (GO), with an annual capacity of 2 million metric tons, and the
other in Primavera (PA), with an
annual capacity of 1.2 million tons.
Both plants are scheduled to start
up operations in the second semester of 2015.
We are also strengthening our presence in the mortar segment in the
Northeast Region, with the construction of a new plant in Camaçari
(BA), which has an annual mortar
production capacity of 206 thousand
metric tons. This new plant went
into operation in February 2015.
The next target in our investment
plan is the Northeast Region,
another developing region and a
priority in our business strategy. In
the state of Ceará, we will build an
integrated plant in Sobral, which
will add 1 million metric tons to our
annual installed cement production capacity, and a grinding mill in
Pecém with an annual capacity of 0.5
million metric tons.
19
Who we are
R$ 1.276
billion
R$ 15
billion
Our investments in 2014.
The total amount of our
investment plan, up to 2017.
Expansion overseas
Voluntary Commitments [G4-15]
In line with the goal to continue
to expand our global operations,
we have invested in the other
regions where we operate. We have
prioritized emerging markets with
growth potential in Europe, Africa
and South America, such as Turkey
and Bolivia, without neglecting
regions in mature economies with
prospects of recovery, such as Florida
and the Great Lakes region in the
United States and Canada.
We are signatories of voluntary
global and national pacts and initiatives, such as:
In 2014, we approved a major project
to expand our operations in Bolivia,
for the construction of a new cement
factory, to serve the region of Santa
Cruz de la Sierra, one of the country’s
main markets, and which is experiencing a strong phase of growth.
We also approved, in 2014, the construction of a new plant in Turkey, in
the region of Anatolia and the expansion of our plant in Charlevoix, in the
United States.
20
1) United Nations Global Compact
(UNGC) – The UNGC is an United Nations initiative to encourage companies to respect human rights, support
decent work, protect the environment
and fight corruption.
2) Cement Sustainability Initiative
(CSI) – The CSI is an international cement industry protocol, signed by the
24 largest producers of construction
materials in the world, to promote
the adoption of best practices in the
cement sector.
3) Business Pact – “Na Mão Certa”
Project – By signing this compact the
signatories committed to combat the
sexual exploitation of children and adolescents on Brazilian highways.
4) SBE-VC-RBMA Technical Cooperation Agreement – This is a partnership between Votorantim Cimentos,
the Brazilian Society for Speleology
(SBE), and the Atlantic Forest Biosphere Reserve (RBMA) to develop social and environmental practices that
contribute to the protection of caves
and the Atlantic Forest biome.
VOTORANTIM CIMENTOS
Who we are
Major Honors
and Awards
In 2014, we received the following
major honors and awards:
We have been
recognized by the
market for our activities
and initiatives.
Awards
Focus/Category (s)
Best and Biggest – Exame
Magazine
Construction Industry
Best Companies in Brazil –
Época 360º Magazine
Construction and Decoration
Materials
Brazil
1,000 Largest Companies in
Brazil - Valor Newspaper
Largest Company for
Construction and Decoration
Materials
Brazil
The von Martius Prize for
Sustainability - GermanBrazilian Chamber of Commerce
Sustainability
Sustainable Innovation Award
- FINEP
Sustainable Innovation
Occupational Health and Safety
Performance Award
Cement Industry Employer's
Union
Country
Brazil
Brazil
Brazil
Turkey
Ontario Concrete Awards
aterial Development and
M
Innovation
Structural Material
Innovation
Sustainable Concrete
Construction
Institutional Building
Canada
Indiana Mineral and Aggregates
Association – Environmental
Stewardship Council
Safety Excellence Award
Excellence in Minning
United
States
National Stone Sand Gravel
Association
Environmental
Excellence Award
Safety Excellence Award
United
States
Illinois Association of Aggregate
Producers
Rock Solid Safety Award
Gold Safety Award
United
States
Anamaco Awards - National
Leadership in the
Association for Building Material
construction sector
Retailers (ANAMACO)
Brazil
16º Edition of Awards for
Excellence in the Brazilian
Metals and Mining Industry
– Brazilian Mining Institute
(IBRAM)
Brasil
Excellence and Innovation
21
Who we are
votorantim cimentos is
here, there and everywhere
See the “what” and the “where” of our products
22
VOTORANTIM CIMENTOS
23
24
VOTORANTIM CIMENTOS
Market Context
[G4-2]
A diverse global
economic panorama
In 2014, the global
economy experienced
a year of important
adjustments and
expectations.
According to the Global Cement
Report, global cement consumption in
2012 was 3.7 billion metric tons and the
market was expected to grow strongly
to reach 4.14 million metric tons in
2014. In terms of countries, China
stood out with a consumption of 2.16
billion metric tons in 2012, representing 58% of the global total. The United
States and Brazil were the third and
fourth largest markets, respectively.
One of the most important market
indicators to compare countries is
the per capita consumption. Also
according to the Global Cement
Report, the per capita cement
consumptions for China, the United
States and Brazil were 1,518 kg, 232,
kg and 348 kg, respectively.
The combined sales of the 10 largest
cement manufacturers represented
26% of global consumption in 2012,
according to the Global Cement Report. The largest manufacturers in developed countries, such as the United
States, have positioned themselves
in the emerging markets through
acquisitions and organic expansion
projects particularly in countries with
attractive consumption indicators.
At a global level, Votorantim Cimentos is now the eighth largest cement
manufacturer in terms of production
capacity and the fifth largest in terms
of EBITDA, excluding the Chinese
companies in both cases.
2014 Integrated report
Brazil
According to the Global Cement
Report, Brazil was the country with
the fourth largest cement consumption in 2012. The cement consumed in
Brazil is primarily produced domestically. In 2012 there were approximately 82 cement manufacturers in
Brazil, distributed throughout the
country, and with a combined annual
production capacity of 82 million
metric tons.
Cement is the most utilized construction material in Brazil and has
been produced on an industrial scale
since 1926. Cement is sold both in
bags and in bulk. In the case of our
domestic sales of cement in bags we
have established strong brand names
and we have a vast retail network
covering all the regions in Brazil. Bulk
sales are made principally to producers of concrete and other industrial
consumers such as manufacturers of
masonry cement and mortars.
The year of 2014 was marked by
unfavorable macroeconomic conditions and a low GDP growth which,
at 0.2%, was well below the market’s
expectations. The domestic base interest rate increased from 10.00% to
11.75% p.a. and the US Dollar revalued
strongly against the Real (+13.4%),
compared to 2013.
25
Market Context
Despite being an untypical year,
marked by important events,
principally the World Cup and the
presidential elections, Brazil’s cement sector registered a growth
rate of 2.3%, according to data from
the National Cement Industry Union
(SNIC). This reinforces our view that
the main drivers of market growth
remain strong.
In such a context, we believe we are
the Brazilian company that is best
positioned to meet the varying levels
of demand across the regions due
to our highly pulverized distribution
network, strong brand recognition,
and wide range of construction material products that are tailored to a
variety of consumer segments, such
as retail, construction, infrastructure
and real estate.
North America
The United States economy has
recovered and become a strong
factor in promoting global economic recovery. Its recovery was in
26
part driven by the ample supply of
energy at competitive prices. This
impacted several economic sectors
and led to a gradual improvement
in employment, investment growth
and the average level of business
confidence.
In 2014, the total annual cement
production capacity of Votorantim
Cimentos North America (VCNA)
remained constant at 5.2 million
metric tons and we believe we are
well positioned to take advantage of
the upturn in the region’s economies.
As a result of these more favorable
conditions, the construction sector
recovered considerably. According
to the Portland Cement Association
(PCA), the total consumption of
cement in the United States in 2014
was 86.8 million metric tons, an
increase of 8.9% compared to 2013.
In the case of the regions where we
operate, the growth was 18.0% in
Florida and 10.8% in the Great Lakes.
Europe, Asia and Africa
In the case of Canada, overall cement consumption declined by 1%.
However in the Ontario region,
where we operate, consumption
increased by 1% and exports of
Portland cement grew by 8.9%,
according to data published by the
Canadian Cement Association.
Our operations in Europe, Asia and
Africa recorded another year of
consistent results, mainly due to the
impacts of the turn-around process,
which started in 2013. The results
were driven by the good results of
the operations of Turkey and Tunisia,
and were partially offset by declines
in Spain, Morocco and India.
The highlights of the cement market in
each country in 2014 were as follows:
Turkey: The country’s GDP grew
by 3.7% in 2014. Despite the crisis
in Europe, the growth in the construction industry in the neighboring countries has been good. The
industry grew at a record average
VOTORANTIM CIMENTOS
Market Context
Our operations in Europe, Asia
and Africa recorded another
year of consistent results.
8.9%
The increase in cement
consumption in the
United States in 2014,
compared to the
previous year.
compound growth rate of 7.7%
between 2008 and 2014. This growth
was stimulated by ongoing government incentives for foreign direct
investment and public-private
partnerships. Turkey is the seventh
largest market for cement consumption behind China, India, the United
States, Brazil Russia and Iran.
Tunisia: The country’s GDP grew
by 2.7% in 2014. The retail segment is
expected to grow due to increased
income, urbanization and a larger
middle class. We believe that investments in infrastructure development, particularly in highways,
ports and airports, present positive
prospects for the cement market.
Morocco: The country’s GDP grew
by 4.5% in 2014. The construction
market was boosted by investments
in infrastructure by the government,
the tourist industry and residential
housing. However, despite this the
overall consumption of cement fell
by 5.4%.
Spain: The market’s performance
was adversely affected by the country’s weak economic fundamentals,
as GDP fell by 2.0%. Despite this cement consumption increased slightly
by 0.4% during the year. According
to the Spanish Cement Association
(Oficemen) cement production was
affected primarily by the construction segment.
India: The country’s GDP grew by
6.0% in 2014, stimulated by growth
in agriculture and construction. The
cement industry has grown at an average compound growth rate of 8.0%
in the last decade despite economic
problems in recent years. Even so the
cement consumption per capita is
still below the global average, according to the Global Cement Report.
The cement industry in Bolivia has
grown significantly in recent years
and, in 2014, cement consumption
reached 3.4 million metric tons, an
increase of 8.7%.
The cement industry in Uruguay has
grown consistently as a result of the
strong growth of the overall economy. In addition, Uruguay still has one
of the lowest ratios of per capita cement consumption to GDP in South
America, thus having a potential for
expansion due to the country’s prospects for economic growth.
South America
In South America, we operate in the
production, marketing and distribution of cement (Uruguay and Bolivia)
and concrete (Uruguay), through
partnerships with local producers.
27
Corporate Identity
[G4-56, G4-57 e G4-58]
Our corporate
identity is one of the
foundations of our
business activities .
Following the implementation of
the new governance structure for
the holding company, Votorantim
Industrial, in 2014, each industrial
subsidiary now has more autonomy
to manage its own business operations while, of course, observing the
macro guidelines set by Votorantim
Industrial.
As a result of the changes to the
overall structure, each industrial
subsidiary has established its own
internal governance structure.
Nevertheless, the essential identity of the organization as a whole
remains unchanged. So, in the case
of Votorantim Cimentos, we have
developed a vision for our business,
but have maintained the values and
management beliefs that are valid
for Votorantim as a whole.
Our values are represented
by the acronym SEREU:
Solidity – To seek sustainable
growth with value creation.
Ethics – To act responsibly and
transparently.
Respect – To respect people and
be willing to learn.
Entrepreneurship – To have the
courage to grow, innovate and
invest.
Union – The whole is stronger
than the sum of the parts.
Management Beliefs
Another key point is that, in 2014,
we carried out a wide-ranging review
to define Votorantim’s DNA. Our
DNA is represented by our values,
principles and practices that have
been built up throughout the organization’s long history. All Votorantim’s
industrial subsidiaries participated in
this process.
Talent Development – We invest
time and resources in developing
our talented people because we
believe in and trust them.
Vision
Excellence – We believe we can
always do more and better, overcoming challenges with discipline,
humility and simplicity.
To be a construction
materials company that
is committed to customer
success through excellence.
28
Values
Meritocracy - We believe that
people are individuals and deserve
to be treated fairly and in accordance with their personal performance.
Pragmatism – We believe that
it is essential to devote time and
VOTORANTIM CIMENTOS
energy to what is most relevant,
with objectivity and without losing
sight of the big picture and the future
trends.
Open dialogue – We believe that
an atmosphere of trust fosters open
dialogue and ensures that all have
room to talk and to be heard, and
that a diversity of opinions leads to
better solutions.
Partnership – We believe our
success is a result of collaborative
efforts, strengthened by genuine
relationships and partnerships in
which everyone wins.
Sense of ownership – We believe
in people that take on responsibilities, work with passion and lead by
example, celebrating their achievements and using mistakes as opportunities for learning.
and society in general. It is an instrument for daily use, to guide actions
and decisions. The rules of the Code
are mandatory for the organization’s
employees and also serve as a reference for our partners and suppliers.
Code of Conduct
The Code is aimed at Votorantim
employees in Brazil or overseas, contract staff, partners, suppliers and
other stakeholders, and is available
for access, in a number of languages,
at: http://www.votorantim.com.br/
pt-br/ouvidoria/codigoconduta/Paginas/codigoConduta.aspx
Votorantim’s Code of Conduct was
launched in 2005 to provide the basic
guidelines for our behavior in day-today business activities. The Code expresses the company’s commitment
to ethics in relations with customers,
employees, shareholders, suppliers,
government, media, communities
29
Material Issues
[G4-19, G4-20, G4-21, G4-23, G4-24 and G4-37]
Definition of the
Material Issues that guide
our Strategy
For this report, we have used the
results of the materiality assessment
conducted during 2013 and 2014,
where we identified the relevant
material issues from the specific
viewpoint of the cement sector.
This assessment, carried out with
the support of BSD Consulting,
included the following materiality
assessment criteria:
Analysis of internal and industry
documents.
The results were consolidated and
submitted to the company’s senior
management for their approval. Of
the 39 material issues identified in
the review, 17 were selected as being
the most relevant to Votorantim
Cimentos.
The material issues guide
our sustainability strategy.
These materials issues were used to
develop our sustainability strategy
and in the selection and management of the GRI indicators in this report. All of them have been discussed
and monitored in all the regions
where we operate, through research
or relationship channels, with employees, customers, suppliers and the
community.
Survey of employees’ opinions
regarding the Report for 2012.
Face-to-face interviews with managers at all levels.
Interviews, both face-to-face and
by phone, with representatives of
priority stakeholder groups (customers, suppliers, Board members,
employees, government agencies
and financial institutions).
We consulted 42 representatives
of stakeholder groups, of which 19
were internal and 23 external, in the
four macro-regions where we operate (Brazil, South America, North
America and Europe/Asia/Africa).
30
VOTORANTIM CIMENTOS
31
materiality
Materiality Matrix
Level of importance
of economic,
environmental and
social impacts
Very high materiality
Financial Capital Human Capital
Manufactured and Intellectual Capital
Social and Relationship Capital Natural Capital
1
2
3
13
12
4
5
6
7
8
9
15
10
16 17
high
Very high materiality
Level of importance
for the decisions and/
or perceptions of
stakeholders
The correlation between these material issues and the IIRC
concept of capitals is shown in the table below (please see
the section “About the Report” for more information):
1 Ethics, transparency and integrity
2 Occupational health and safety
3 CO emissions
2
4 Anti-corruption practices, cartels and
5
6
7
8
9
32
anti-competitive behavior
Regulatory risks
Supply chain management
Contribution to local development
Economic performance: economic value
generated and distributed
Relations with the community
14
11
10 Government relations
11 Energy efficiency
12 Alternative sources of electrical energy and fuel oils
13 Air emissions (Particulate Matter, NO , SO )
X
X
14 Management and re-use of construction waste and reverse
logistics for used cement bags
15 Water consumption
16 Customer satisfaction
17 Preservation of biodiversity
VOTORANTIM CIMENTOS
materiality
How materiality influenced our actions in 2014 – some examples
STAKEHOLDER
DEMAND
(material issues)
OUR RESPONSE
Employees
2
Global Safety Day /Global Safety Roadmap.
Customers
16
Go to Market Project.
Suppliers
6
Development of local suppliers.
1, 4 and 5
Government bodies
15
17
Investor Relations
8
Communities
9
We revised our Global Policies for Anti-Corruption and Compliance
with Competition Laws, reinforcing our commitment to comply
with the legislation. We carried out a series of internal campaigns
to disseminate these policies among our employees. These policies
resulted in a number of specific initiatives related to compliance,
anti-corruption and fair competition.
We developed projects to reduce water consumption and to increase water re-use in all regions where we operate.
We conserve a nature reserve that is located in the area of our
Nobres (MT) unit. The reserve has been formally recognized by the
environmental authorities as a Private Natural Heritage Reserve.
We obtained investment grade ratings from the three major rating
agencies.
Social investments in communities.
33
34
VOTORANTIM CIMENTOS
Business Overview
[G4-2, G4-8, G4-24, G4-26 and G4-27]
Management Approach
In 2014, we worked hard to ensure
that our processes and our culture
were consistent with our geographic
presence, seeking to generate value
for the company in the short, medium and long terms, in the different
markets in which we operate.
88%
of Votorantim
Cimentos’ employees
are committed to our
strategic vision and 76%
believe that the vision
will be positive for the
company (Climate
Survey 2014).
We mobilized our employees around
the world to develop a concept that
we call “One Team, One Company”.
The objective is to align our strategies and our people’s efforts around
a single vision: To be a construction
materials company that is committed to
customer success through excellence.
In this process, we learned a lot and
identified synergies and best practices. Based on these results, we defined
policies to position our business
around the world. At the core of all
we do are the strategic drivers that
support our vision: Customer Focus;
Empowered People; Operational Excellence; and Sustainable Practices.
We disseminated our strategy to our
employees in Europe, Asia, Africa, the
United States, Canada, and Brazil and
the other countries in South America.
We implemented a governance structure that will enable us to play an even
more prominent role in the international markets in the years to come.
At the same time, we began to
develop an integrated management
system that consolidated, in a single
platform, our processes, management methods and key performance
indicators.
With this in place, we can ensure
that strategies are understood and
deployed in all countries, at all levels
from senior management to operators. This will strengthen our capacity to generate, in an integrated
manner, positive economic, social
and environmental outcomes.
The strategic value generated
in 2014
We developed a corporate governance structure for our global
operations and incorporated the
governance of sustainability at the
company’s highest decision-making
level.
We implemented the global strategic plan and an integrated financial
model, to leverage the investments
made in the regions.
We also developed a Strategic
Sustainability Plan and prepared a
formal document that defined Our
Sustainability Commitments for
2020. This process involved discussions among representatives from all
the regions where we operate. The
plan includes goals for community engagement, safety, ethics and compliance, eco-efficiency and innovation.
We continued with our investment
35
Business Overview
Our goal: achieve an
improvement of up to 15% in
operating efficiency, including
the targets for Our Sustainability
Commitments for 2020.
program and expanded production
capacity, both in existing projects in
Brazil and new projects, approved for
Bolivia, Turkey and United States.
three-year plan for each plant will
be developed, with specific actions
and priorities, in accordance with the
characteristics of each region.
ployees will be encouraged to learn
how they can contribute individually
to achieving the company’s strategic
and financial objectives.
We defined our long-term guidelines, to be applied globally, related
to each of the strategic drivers that
comprise our vision.
Integrated Management System
Excellence Assessment Program
ensures efficient management
practices, recognizing and rewarding
the best-performing teams for their
achievements.
In Brazil, we implemented a new
sales approach, totally focused on
the needs of each segment and each
client.
Global Performance Program
In this program, we will analyze information on technical performance,
costs, sustainability and safety, for
the past five years, in more than 50
production facilities in: Brazil (VCBR);
South America and North America
(VCNA); and Europe, Asia and Africa
(VCEAA). The project was developed
in 2014 and will be put into practice
in the first quarter 2015.
As a result, a database will be generated which will enable us to carry out
internal and external benchmarking
studies to identify opportunities
for improving operational excellence. Based on this information, a
36
In 2014 we developed the Integrated
Management System (IMS), which is
a set of practices, processes, methods
and data (KPIs) that applies to all business units in all regions and countries,
including manufacturing and administrative units. It provides guidance
as to how people should work on a
day-to-day basis to meet targets and
solve problems in order to achieve the
company’s annual budget and realize
its medium and long- term strategy.
The IMS aims to promote a high performance organizational culture and
covers three elements that collectively
guide the company’s efforts to effectively realize its strategy and targets:
Performance Management System
promotes operational stability and
the continuous improvement of results, and provides the necessary resources to enable constant progress.
The IMS provides a common language that facilitates communication between the different levels
of the company, enabling faster
decision-making and promoting
rapid cultural change in operations.
It also increases career opportunities
within the company, encouraging
greater internal mobility.
The first phase of the system will be
implemented in 2015, in the cement
business, in VCBR, VCEAA and VCNA.
In the near future, it will be extended
to the company’s other business
areas (Aggregates, Concrete and
Complementary Products) and functional areas.
Employee integration through
communication and training, our emVOTORANTIM CIMENTOS
Business Overview
Our Vision – Strategic
Drivers G4-56
Our Vision and its Strategic Drivers, allied to our Corporate Identity
(Vision, Values and Management
Beliefs), constitute the foundations
of our business activities.
Business strategy
Our business strategy is based on
the expansion of our operations,
increased operational and management efficiency, a wide range of
products and services and constant
attention to cost control. We grow
both organically by investing in expansion projects and also by making
acquisitions.
The principal elements of our strategy are:
Achieve organic growth by
increasing production capacity by
expansion projects in existing plants
or from building new plants. We
invest not only in expanding cement
production, but also in new plants for
concrete, aggregates and complementary products.
The Strategic Drivers are as follows:
Customer Focus
Best in Class Operations
We drive our decisions based on
customer needs
We constantly monitor our performance and are obsessed with
continuous improvement.
We develop innovative products
& solutions in partnership with our
customers.
We make decisions quickly and
intelligently, in a disciplined and
consistent manner.
We have all areas of the company focused on improving customer
service.
We maximize productivity in all
areas.
Empowered People
Sustainable practices
We value and recognize leaders
who lead through others – creating strong, diverse and engaged
teams.
Safety first!
We are trustworthy and ethical
in our actions according to law
and regulations.
We want people who have the
We promote ecoefficiency
autonomy to take action and use
through the use of innovative
the Integrated Management System (IMS) to leverage performance. products, practices and solutions.
We work together to develop
creative solutions and make things
happen.
We foster local dialogue and
relationships with communities to
perpetuate the Votorantim legacy.
Establish a position as a global
company and increase our international business by acquisitions and
investments in growth and external
expansion.
Presence throughout Brazil and in
important global markets.
We have restructured the Sales
Area aiming to optimize customer
relations. We are focusing on service level, market segmentation,
customer satisfaction, and new
procedures for customer service and
management.
We have redesigned our organizational structure to improve the
definition of internal functions and
roles and redesign processes and
procedures. This has contributed to
a better definition of our targets.
We created a new global structure
to avoid overlapping functions and
ensure quicker decision-making.
This new structure is simpler
and more efficient and aligned
with business needs in Brazil and
overseas. The new management
approach ensures better team
cohesion and is in line with best
practices in corporate governance,
controls and risk management.
37
Business Overview
Corporate Governance
[G4-13, G4-34, G4-35, G4-36, G4-38,
G4-39, G4-40, G4-41, G4-43, G4-45,
G4-46, G4-47, G4-48 and G4-49]
Global governance model
In 2014, we defined a new global
governance system for Votorantim
Cimentos. With this move we raised
our governance standards to the
same level as the companies listed
on the São Paulo and New York stock
exchanges. Furthermore, we obtained investment grade ratings on
a global scale, from the three main
rating agencies: Standard & Poor’s
(rating BBB), Moody’s (Baa3) and
Fitch Ratings (BBB).
With this, we have achieved the basic
requirements to open the company’s
capital, when the market is favorable, and to be more competitive in
terms of attracting investors in the
38
domestic and international capital
markets.
The new governance structure
demonstrates a balanced view of
the business challenges and the
factors influencing the markets in
our four business regions - VCBR
(Brazil), South America, VCNA
(North America) and VCEAA (Europe, Asia and Africa ), encouraging
the exchange of good practices and
investment decisions.
Each region is represented in the
Global Executive Team (GET).
In addition to the vice-presidents
responsible for these regions, GET
includes Votorantim Cimentos’
global president and the executive
directors of five global functional
areas that are strategic to the company: Finance and Investor Relations; People and Management;
Legal and Government Relations;
Corporate Development; and Energy,
Sustainability and Safety. GET holds
monthly meetings to discuss, decide
and monitor the actions that are
necessary to realize our vision.
This structure is reproduced in
the regions, with executive teams
addressing the strategic issues of
their local operations: in Brazil, we
have the Brazilian Executive Team
(BET); in North America, the North
American Executive Team (NAET);
in Europe, Asia and Africa, the European, Asian and African Executive
Team (EAAET).
Thus, our strategic drivers, including
those related to sustainability, are
managed at the highest decisionmaking levels of the company that report directly to the Board of Directors.
VOTORANTIM CIMENTOS
Business Overview
Our governance
structure
CEO
Global Internal Audit
Latin America
Shareholdings
New Businesses &
Innovation
VCBR
People &
Management
VCEAA
VCNA
Finance
Corporate
Development
Legal
Energy,
Sustaintability
and Safety
39
Business Overview
Board of Directors and Advisory
Committees
Responsible for managing strategic issues and determining short and longterm policies, the Board of Directors
consists currently of five members
elected by the General Assembly for a
two-year term. One of the members is
independent. The Board of Directors is
supported by four Advisory Committees, as follows:
Statutory Audit Committee –
Composed entirely of independent
directors, with a five-year term,
is responsible for monitoring issues related to the preparation of
financial reports, including financial
statements, internal controls, risk
management, complaints received
by the Ombudsman, compliance
with laws and regulations, as well as
interaction with, and monitoring of,
internal and external audits.
Finance Committee – Composed
of three members, is responsible for
monitoring issues related to: Brazilian macroeconomic and global environments and their potential effects
on the company’s financial position;
proposals on cash management
guidelines and liquidity; guidance on
hedging policy, financing alternatives and capital structure; and an
evaluation of exposure to financial,
fiscal and regulatory risks.
Remuneration and People –
Composed of three members, it is
responsible for advising the Board on
decisions related to human resources.
Strategy Committee – Composed
40
of a minimum of three and maximum
of five members, it is responsible
for: monitoring and analyzing the
context of the Brazilian and global
industry and the implications for
the company’s competitive position;
discussing and advising the Board on
short, medium and long-term strategic issues, including competitiveness,
new markets and products, innovation and sustainability; advising on
investment opportunities and/or
divestitures; proposing long-term
strategy and defining guidelines for
multi-year plans; and advising the
Board and the Remuneration and
Personnel Committee on setting
incentives to capture the company’s
value potential.
ance; and Community Engagement.
It is also responsible for preparing the
annual Integrated Report.
The Board of Directors, as a rule,
meets bimonthly and analyzes the
impacts, risks and opportunities, in
general, related to the company.
In addition, we have established
forums to further engage the teams
with the targets set out in our Strategic Sustainability Plan.
The head of this Directorate is a
member of the Global Executive Team
(GET), which proposes initiatives and
monitors the company’s overall performance. Reporting to the Directorate is a team of specialists in environment, safety and social responsibility
matters that provides support for
the development and execution of
projects. The company’s performance
in environmental, safety and social
responsibility matters is managed
centrally for all regions. We also have
environmental focal points in each
region, country and industrial plant.
Sustainability governance
In 2014, to accelerate the synergy
between the units and to engage
employees in their efforts to achieve
the targets set in Our Sustainability
Commitments for 2020 (see the item
“Sustainability for Us,” below), we
enhanced our global structure for the
governance of sustainability.
We reinforced the structure that we
had begun implementing in late 2013,
by establishing the Global Directorate for Energy, Sustainability and
Safety. The new Directorate has the
role of developing and monitoring
the guidelines in four areas selected
as priorities: Safety; Eco-efficiency
and Innovation; Ethics and CompliVOTORANTIM CIMENTOS
Business Overview
Global sustainability
governance structure
Final Approval (reporting and strategic validation)
Board of
Directors
GET
(Global Executive Team)
Approval
Global Sustainability Committee
Technical approval
41
Business Overview
Sustainability governance
discussion forums
We have established discussion forums to promote alignment between
the short and medium-term actions,
both globally and in the regions
where we operate, and the company’s long-term strategic positioning.
DISCUSSION FORUM
GET – Global Executive
Team
GLOBAL
Environmental
Committee
Technical meetings
BET – Brazilian
Executive Team
VCBR
VCNA
42
MEMBERS
Global President
Regional Vice-Presidents
Executive Directors of global areas, including Energy,
Sustainability & Safety (ESS)
ESS Global Executive Director
Regional Operations Directors
Global Head of Environment
Regional Sustainability Leaders
Global Head for the Environment
Regional Coordinators for the Environment and
Sustainability
Global CEO
Directors of VCBR including Technical Director
FREQUENCY
OF MEETINGS
Bimonthly
Semiannually
Quarterly
Bimonthly
Environmental
Committee
Technical Director
Business Directors
Global Head for the Environment and VCBR
Environmental Leaders
Social Responsibility
Committee
Annual meetings with the Board and the VCBR
Directors
Semiannually
Meeting with the Board to approve the external social
investment
Quarterly
NAET – North America
Executive Team
Regional Representative
Regional Vice-Presidents
Bimonthly
Environmental
Committee
North America Environmental Leaders
Quarterly
Marketing and
Manufacturing
Committee
Support and Technical Areas
Semiannually
VOTORANTIM CIMENTOS
Business Overview
Sustainability for Us G4-25
Throughout our long history, we
have promoted the social and
environmental development of the
communities where we operate and
have made important contributions
to initiatives that promote sustainability in the cement sector.
For us, sustainability means achieving
our growth ambitions, in the following way: taking the present and future
needs of society into account; offering
eco-efficient and innovative building
materials, and services, to our cus-
tomers; acting in an ethical, transparent manner and in accordance with
the laws and regulations; providing a
motivating, healthy and safe work environment for our employees, contract
staff and third-parties; supporting our
local communities and encouraging
their progress.
To speed up the achievement of
these goals, in 2014, we revised our
Strategic Sustainability Plan with
the participation of teams of employees from all the regions. This plan
represents the company’s medium
and long-term positioning on sus-
tainability and was approved by the
Global Executive Team (GET) and the
Board of Directors.
At the end of the year, we formalized
our position in the document called
Our Sustainability Commitments
for 2020 with goals that go far
beyond legal and regulatory compliance. Indeed, we want these goals
to inspire us to continue to operate
in harmony with society and to create value for the company and our
stakeholders over time.
How we intend to get
there
How the strategy was
developed
What we achieved in 2014
1 Our Vision (strategic direction).
2 We conducted a process to identify
We set ourselves ambitious goals
in key areas for sustainability
in our industry, making it clear
which issues would be prioritized
and where we wanted to be by
2020.
the material issues for our stakeholders. This included collecting information through specific opinion surveys
with customers, employees and
communities and our established
communication channels for relations with stakeholders.
3 Swot Analysis (strengths, weaknesses, opportunities and threats).
4 Internal (regions) and external
benchmarking studies.
5 Current industry and market
standards.
6 Major trends in sustainability.
We defined the global and
regional targets at the end of
last year and the performance
indicators to monitor them.
In 2015, these targets will be
cascaded down, year by year,
up to 2020.
For each target, an action
plan has been defined.
Sustainability targets are
part of our managers’ performance evaluation, accounting
for between 20% and 80% of
a manager’s remuneration,
from the highest level to the
starting level.
43
Business Overview
Our Sustainability
Commitments for
2020
Our sustainability strategy is based
on four strategic dimensions:
HEALTH AND SAFETY
Safety first!
ETHICS AND COMPLIANCE
We are ethical and trustworthy,
and act in accordance with the
laws and regulations.
ECO-EFFICIENCY AND INNOVATION
We promote eco-efficiency
through innovative processes and
products.
COMMUNITY ENGAGEMENT
We foster dialogue and
good relations with the
local communities, seeking
to perpetuate the legacy of
Votorantim.
Our Sustainability
Commitments for 2020
– in detail
Health and Safety
Safety is Votorantim Cimentos’ most
important value, and is placed ahead
of everything we do. It is one of the
pillars of our Strategic Sustainability
Plan, and has a clearly defined goal:
zero accidents.
Our initiatives to promote health and
safety are governed by the Global
Health and Safety Policy which,
as from 2014, began to be used to
guide our operations globally. The
Rules for Life are a set of norms that
aim to ensure an accident-free work
environment and they have also been
implemented globally. Furthermore,
we began to implement critical
safety protocols, based on best prac44
tices for health and safety, in order to
prevent fatalities.
We have improved our frequency rate
of accidents with lost time (number
of accidents with lost time per million
hours worked), which decreased from
1.09 in 2013 to 0.94 in 2014. Despite
the good progress made fatalities
occurred during the year, which we
profoundly regret. Three of the fatalities were own employees and one
involved contract staff. In addition
there were seven fatalities involving
third-parties in our supply chain.
A single loss of life is one too many.
We have investigated the causes of
such accidents and intensified safety
programs in order to prevent fatalities in all our operations. Programs
to promote safe behavior, such as
“Manager walking in the area”,
have been intensified. Under this
program the unit managers carry out
health and safety inspections, closely
monitoring the operations. We have
instituted, and are practicing, the
Right of Refusal, under which an
employee can refuse to work if he/
she considers that the conditions are
unsafe. The implementation of Critical Protocols to Prevent Fatalities
has progressed significantly. Investment plans have been developed to
adapt our operations to conform to
regulatory norms and international
technical standards. Finally, our
operational security methods were
revitalized, to further improve our
procedures for Risk Analysis, Work
Approvals and Procedures for Hazardous Tasks. All of these measures
are aimed at eliminating the factors
that lead to a high risk of accidents
and preventing serious accidents.
VOTORANTIM CIMENTOS
Business Overview
Take care
of yourself
So you can take care of
your loved ones and enjoy
life’s precious moments
Every day we care about the most important thing: your life. Safety is in your hands, in every moment and in every gesture.
Be sure you are aware of our Life Saving Rules and the Global Safety & Health Policy, and know how to follow them.
You are doing it for you and your loved ones.
Global
Safety Day
Safety begins with me
In order to disseminate the Global
Health Policy and Safety and Rules
for Life, we mobilized our employees to participate in Global Safety
Day, on June 27th 2014. This will now
be a permanent fixture in the company’s annual calendar of events.
In this first edition of Global Safety
Day the activities began with a
message from the president to all
managers, in which he highlighted
the managers’ responsibilities
for health and safety. The message was relayed to our 25 thousand employees and contractors
worldwide, through videos that
emphasized the role of each person
in the promotion of safety and the
elimination of accidents, as well as
participating in the events in each
location.
45
Business Overview
Our targets for 2020
Implement a robust Safe Behavior Program, aiming to increase the
employee’s level of risk perception and
the manager’s level of engagement.
Make progress in the Management of Critical Risks, implementing
the requirements of the Critical Risk
Protocols in the businesses of each
region.
Implement the requirements of the
CSI Safe Driving recommendations in
our business.
Improve the sharing of best practices and learning from incidents in
order to prevent repetitions of those
with a high risk probability.
Ensure the effective implementation of the Global Health and Safety
Policy and the Rules for Life.
Implement critical standards of
safety throughout the value chain,
with the aim of ensuring the use of
controls that prevent serious accidents.
Promote healthy working conditions for all members of the workforce.
Based on these initiatives, achieve
Zero Fatalities and an Injury Frequency Rate with lost time for direct
employees of less than 0.4.
Fatalities
Cement, Concrete, Aggregates and Complementary Products
9
8
8
7
5
2
2
2012
2013
3
2014
EMPLOYEES
1
2012
2013
2014*
CONTRACT STAFF
THIRD-PARTIES
Lost Time Injury Frequency Rate
1.28
1.06
1.14
0.9
0.77
2013
2014
0.47
2012
Employees
2013
2014
2012
CONTRACT STAFF
* Note: In 2014, the fatalities were reclassified due to a revised interpretation of the CSI criteria.
46
VOTORANTIM CIMENTOS
Business Overview
”More Life” program –
health and quality of life
The “More Life” Program encompasses a number of initiatives
involving employees and their
families. Some examples of these
initiatives are as follows:
VC Cares for your Health: monitors
people’s health conditions by telephone and provides support to participants in caring for their health.
Employee Help Program: provides
guidance on legal, financial, emotional, marital and family matters.
Mother, Baby & Co.: provides
support and guidance to pregnant women, and is conducted by
health professionals.
Ethics and Compliance
[G4-SO3, G4-41 and G4-43]
We revised our new Global Compliance Program in 2014. The program
was developed based on Votorantim’s Code of Conduct, Values and
Management Beliefs, and has the
following main objectives:
Guide the company in terms of
compliance, and conformity with
laws and regulations and commitments undertaken in signed
contracts and agreements.
Ensure conformity with the conditions required to obtain the licenses,
permits and certifications necessary for our operations.
Ensure conformity with our commitment to the defense of competition and the prevention of fraud and
corruption.
Additionally, we have carried out a
series of training courses and initiatives to disseminate the culture of
combating corruption and complying with fair competition laws at all
levels and geographical regions of
the company. Making employees
conscious of compliance issues and
the dissemination of the respective policies are company priorities.
Therefore, in order to inform, provide guidance, educate and engage
all of the company’s employees and
business partners, the Global Policy
for Anti-Corruption and Compliance
with Fair Competition was dated
and divulged in 2014.
As part of the company’s practice of
continuously improving its controls
and reinforcing its culture, it carries
out regular risk assessments focused
on conformity with its anti-corruption and fair competition policies.
Ombudsman [G4-41 and G4-HR9]
The Ombudsman service is available
in Brazil and overseas, in 8 languages
and can be accessed by employees,
customers, suppliers and other
stakeholders. Users may ask questions or report complaints regarding alleged violations of the Code of
Conduct. Among the complaints the
most prominent relate to issues such
47
Business Overview
Our Code of Conduct
provides guidelines for
our business activities
and our relations with
stakeholders.
as harassment, discrimination, abuse
of power, corruption or other forms of
unethical behavior.
Internal Audit Department, which is an
advisory body reporting to the Board of
Directors.
countries where the company operates.
Also, in line with best practices, Votorantim Cimentos is committed to
the continuous improvement of the
All reports received are handled by the Reports that have a high level of sensystems used by the Ombudsman area.
Ombudsman area with impartiality
sitivity or refer to members of senior
The company has contracted a provider
and confidentiality. The area analyzes
management are subject to review by
the reports and distributes them to be the Business Ethics Council, composed of world-class call center services, certiresolved. The company is committed
of the Directors of Audit/Ombudsman, fied according international market
to investigating all the reports received People and Management, Legal and the standards. This is a guarantee that the
reports received will be handled in strict
and to respond, in a timely manner,
company’s President.
confidence.
with remedial and educational actions,
as applicable.
The training of the employees who
In 2014, thirteen incidents related to
work in the Ombudsmen area is
The company is committed to the
discrimination were reported. Of these,
conducted in various ways including
resolution of cases in an appropri11 were considered unfounded or lackboth in-person courses and distance
ate time frame, seeking to improve
ing in information, one was considered
learning, based on on-line e-learning
and shorten this period as much as
valid, and one is still under review. The
platforms. These courses are available
possible. The Ombudsman area has a
Ombudsman staff received training on
in several languages.
system which allows the person filing
the company’s revised global policies.
the report to monitor the process at
Therefore overall we achieved a rate of
The Ombudsman area takes data
any time, while preserving his/her
privacy and protection issues, inherent over 92% for the resolution of discrimiidentity by using a code.
in its activities, very seriously. The area nation incidents.
is structured, in line with best marThe Ombudsman area is an indepenVotorantim Cimentos’ Ombudsman is
ket practices, so as to strictly comply
dent body, linked to the Statutory
available to all stakeholders (in Brazil
with the applicable legislation related
Audit Committee, through the Global
and overseas) including employees,
to data privacy and protection in the
48
VOTORANTIM CIMENTOS
Business Overview
Total number of ALLEGED discrimination incidents
and actions taken G4-HR3
ALLEGED Discrimination incidents reported
Complaints received by the Ombudsman
2014
13
Complaints considered valid
1
Notes: a) Refers to the complaints received in discrimination incidents. The topics identified were: race, age, sex, religion, social origin or physical characteristics. b) The complaints of harassment were not included in this indicator.
suppliers, customers, communities,
media and others. All kinds of issues
can be reported, especially those
covered by our Code of Conduct, such
as harassment (moral, sexual), discrimination, suspected fraud, abuse of
power, embezzlement, illegal acts and
other forms of non-compliance.
All requests and complaints are
treated confidentially (identification is
optional) and with impartiality.
degree of importance determined by
our Risk Matrix.
Based on discussions with managers,
we defined limits for risk tolerance and
appetite, and strategies for mitigation
or prevention. More than 60 people
were involved in this process. The results were approved by the areas themselves, the global president, the chief
financial officer, the Audit Committee
and Votorantim Cimentos’ Board of
Directors.
Risk Management G4-14
The Risk Management area has been
working on a number of initiatives
since 2011.
In 2014, the area focused on business
risk management, and developed a
methodology based on best market
practices, principally ISO 31000. We
defined a scale to measure impacts
with criteria to classify questions
related to financial, legal, reputation,
environmental and social aspects.
We weighted them according to the
Contact the
Ombudsman
Brasil: 0800-8911729
United States and Canada:
1-866-340-6689
For countries in Europe, Asia
and Africa: please see the phone
numbers on the website at:
https://secure.ethicspoint.com/
domain/media/pt/gui/27543/
index.html
We revised our Global Risk Management Policy, and also provided handbooks and advice to the areas to explain
the methodology in order to ensure
that the processes were adhered to and
that progress was being made.
At the same time, we defined indicators and a strategy for continuously
monitoring our exposure to risks. We
developed action plans, and worked together with the various areas to reduce
the company’s exposure to risks.
49
Business Overview
Administrative investigations by the Economic Law Secretariat (SDE)
In 2003, the Economic Law Secretariat, or
SDE, opened administrative proceedings
against the largest producers of cement
and concrete in Brazil, including Votorantim Cimentos S.A. (VCSA). The proceedings
concerned allegations by certain readymix concrete producers that these large
cement companies may have violated
Brazilian anti-trust law by not selling certain types of cement to ready-mix concrete
companies.
Furthermore in 2006, the SDE initiated
administrative proceedings against the
largest cement companies in Brazil,
including VCSA, related to allegations of
anti-competitive practices that included
price-fixing and the formation of a cartel.
had be sold in the those markets where
VCSA had more than one ready-mix
plant and (3) other cement assets (not
yet disclosed to VCSA), which, in CADE’s
opinion, were directly related to the
alleged illegal acts/crimes of which VCSA
was accused. In addition, CADE also
imposed non-monetary sanctions on
VCSA, including a restriction on access
to financing by the Brazilian government, together with its recommendation to restrict or limit some other tax
benefits and incentives, as detailed in
its decision PA 08012.011142 / 2006 -79,
published on July 1st, 2104.
On July 1st, 2014, the decision and votes
of the Board members were published,
and the confidential versions for the
companies sentenced were made availOn January 22nd, 2014, the Administrative
Council for Economic Defense (CADE) initi- able the following day. As a result, on
ated the judgment of the proceedings that July 14th, the company filed an administrative appeal seeking clarification of
had been initiated in 2006 by SDE, with
four of the five directors voting for the im- certain contradictions, omissions and
position of certain penalties. On May 28th, obscure points in CADE’s decision. Up to
the present date VCSA has not received
2014, after suspending the first session of
any response to its appeal, and there
its judgment, it delivered its decision, in
which it imposed sanctions on six Brazilian is no legal deadline for this to occur.
Until this administrative appeal has
cement companies including VCSA, for
been judged, CADE’s decision will not
alleged anti-competitive practices.
be formally completed at the adminisThe sanctions imposed by CADE against
trative level and, therefore, sanctions
VCSA, included a fine of approximately
can not be applied. If CADE’s decision
R$ 1,566,000,000 and an instruction to
is confirmed, VCSA intends to appeal
VCSA to sell (1) all of its shareholdings in
in the judicial system. The company
other cement and concrete companies in
has classified the chances of losing this
Brazil, (2) 20% of its installed capacity for
judicial process as a possible loss and
ready-mix services in Brazil; this capacity
on March 31st, 2015, considering this
risk of loss, provisioned an amount of
R$ 682,020,000. If it fails to win the
administrative appeal, or other future
legal processes, the application of these
sanctions could cause a material adverse
effect on the company.
At an earlier date, in 2003, the SDE,
which is currently the CADE General
Superintendency, initiated another administrative process involving cement
production companies in Brazil, including
Votorantim. This case concerned allegations by some concrete producers that
the large cement companies had violated
Brazilian anti-competitive legislation, by
not selling them certain types of cement.
The instruction phase of this process was
terminated in April 2012 and, to date,
there is no evidence that the General
Superintendency intends to submit any
recommendation to the CADE tribunal
for judgment, or is conducting further
research on this topic. If the company is
found guilty of violating the law, it could
be subject to criminal and administrative
sanctions, including an administrative
fine that could range from 0.1% to 20.0%
(if the new anti-trust law is applied) of
the gross revenues of its activities, for
the fiscal year immediately preceding the
year in which the administrative process
was initiated. In the opinion of the company, and of its legal counsel, Votorantim
will not be subject to any administrative
and/or criminal penalties in this process.
The possibility of a loss in this process is
considered to be remote.
Watching out for child, forced or compulsory labor [G4 and G4-HR5-HR6]
The issues related to child, forced or
compulsory labor are addressed in our
Code of Conduct and also through operational control audits. The data generated by the system is monitored regularly and this information is reported to
the Ethics and Conduct Committee.
Any suspected violations of policies or
allegations of child, forced or compulsory labor are directed firstly to the
Audit area and then, after an inquiry or
investigation, depending on the circumstances, they are sent to the People and
Management area for the implementation of appropriate remedial measures.
50
Annual audit plans are prepared, which
include audits of suppliers, in order to
evaluate the main risks for each business unit. These plans are discussed
and approved by the business unit’s
senior management, in such a way that
there is a reasonable level of coverage
considering the number of operating
units in each business area and also
the rotation of emphasis. Additionally
the existence of an Ombudsman area,
supported by an independent information system. This facilitates access to
the Ombudsman area by employees
and other stakeholders, if they observe
violations of policies.
Third-party audits related to the topic
are conducted by outside specialist
contractors.
Furthermore, there are specific clauses
in our contracts related to this topic.
Suppliers that have been blacklisted
by IBAMA or the Ministry of Labour are
automatically deleted from our system.
In 2014, we did not identify any
transactions or suppliers with a risk
of involvement with child, forced or
compulsory labor.
VOTORANTIM CIMENTOS
Business Overview
Eco-efficiency and
Innovation [G4-EN27]
We are committed to the protection
of natural resources and promote
eco-efficiency through the implementation of innovative practices and
products. In 2014, we made significant progress on this topic.
Both policies were approved by the
Global Executive Team (GET) and
the Board of Directors and they
will be disseminated throughout
the company in 2015. This process
includes communication initiatives,
training and the cascading down of
targets, from senior management
to the operational areas.
Based on contributions from specialists in the regions, we reformulated
our Environmental Policy and
Green Rules. The Green Rules are
a set of 10 norms that describe the
behaviors expected of employees
in relation to environmental issues.
The revised version, in addition to
informing the requirements regarding compliance with laws and regulations, includes norms and guidelines
to promote eco-efficiency and reduce
environmental impacts.
Our targets for 2020
TARGETS FOR 2020
ACHIEVEMENTS IN 2014
Ensure implementation of the Global Environmental
Policy and Green Rules.
We developed a new Global Environmental Policy and
revised the Green Rules, introducing and emphasizing the
concept of eco-efficiency.
Achieve a clinker/cement factor of 72%.
We reduced the clinker/cement factor by 1.9%, down to 74.7 %.
Use 30% of non-fossil fuels in our cement plants.
We increased the use of these fuels by 14.2% , reaching a
substitution factor of 7.6%.
Reduce our CO2 emissions per metric ton of
cementitious material by 25% compared to the base
year (1990).
We reduced our emissions by 15.8% compared to the base
year (1990).
Reduce emissions of particulate matter, NOX and
SO2 per ton of clinker, by 65, 1,950 and 750 grams,
respectively.
We reduced emissions of particulate matter by 5.2 % (108
g/ton clinker), NOX by 12.1% (1,977 g/ton clinker) and SO2 by
28.4% (683 g/ton clinker) compared to the previous year.
Implement water management plans in all business
units that are in water-stressed areas.
We completed a risk analysis study on water-stressed
areas in Brazil and began to implement the Global Water
Tool methodology in other countries.
Develop Biodiversity Management Plans for 100% of
the units that overlap with areas of high biodiversity
value.
We developed a Biodiversity Management Plan for the
Ribeirão Grande (SP) plant.
51
Business Overview
OUR GLOBAL
ENVIRONMENTALPOLICY
1
2
3
4
Always comply with the legal requirements, standards and
regulations applicable to the organization and the voluntary
commitments it has subscribed to.
Implement and maintain an Environmental Management System,
appropriate to our nature, scale and the environmental impacts
of our activities, products and services, to ensure compliance
with our commitments, focusing on continuous improvement
and pollution prevention.
E nsure the eco-efficient and responsible use of natural resources
to reduce the consumption of fossil fuels, raw materials, water,
energy and other inputs.
ddress the challenges of climate change by developing a
A
strategy for reducing greenhouse gas emissions. Focus on the
use of low-carbon, alternative fuels, and the responsible use of
fuels and raw materials.
5
efine and implement environmental standards to assess and
D
monitor atmospheric emissions and set reduction targets.
6
inimize the generation of waste. Reduce consumption, reuse
M
and recycle materials when possible and dispose of waste
appropriately and responsibly.
7
ssess, control and reduce the environmental impacts of our
A
activities, focusing on continuous improvement and best industry
practices. Invest in environmental innovation in our processes,
products and services throughout the life-cycle, seeking to
reduce our environmental impacts.
8
evelop rehabilitation and closure plans for all our active mining
D
operations, considering stakeholders’ expectations. Continuous
monitoring and reporting of our biodiversity performance, focusing on conservation and increasing awareness.
9
P romote ethical and transparent relations with our stakeholders,
by providing environmental information about our operations
and products on a regular basis and maintaining a process of
open dialogue.
52
VOTORANTIM CIMENTOS
Business Overview
The Green Rules were
developed based on our
Environmental Policy
principles to facilitate the
understanding and
dissemination of the policy
to all employees.
With this and other environmental education
initiatives we are contributing to achieving
Target 1 of Strategic Goal A of the Convention on
Biological Diversity. This target aims to promote
awareness of the value of biodiversity and the
measures that can be taken to conserve and use
biodiversity in a sustainable manner.
1
2
3
4
5
6
7
8
9
10
Protect and respect the natural environment –
air, land and water
Protect Biodiversity – flora and fauna
Minimize the generation of waste – reuse,
recycling and responsible waste disposal
Maximize energy efficiency and reduce
greenhouse gas emissions (in production,
transportation and support operations)
Continuously monitor environmental impacts
and develop a plan to define reduction targets
Commit to using the highest level of pollution
control technology whenever possible
Respect caves and cultural, geological, historical,
archeological and paleontological sites
Maintain a process of open dialogue. Respect
neighbors and stakeholders
Reduce the use of virgin raw materials whenever
possible. Maximize the efficient and responsible
use of resources
Rehabilitate company sites – during operations
and post-closure
53
Business Overview
Environmental Investments
[G4-EN31]
In 2014, our environmental investments (Capex) totaled R$ 67.8
million and our environmental operating expenses (Opex) increased
to R$ 41.7 million, already reflecting
the benefits of the investments
made in prior years. The increases
were due to disbursements for new
projects for the co-processing of
waste and the modernization of
industrial plants, seeking to increase
energy efficiency and reduce particulate emissions in cement production.
Other important investments included projects for heat recovery and
emissions control in our operating
units in Europe, Asia and Africa.
Total environmental EXPENDITURE
in R$
51,242,110
79,070,976
27,787,572
31,690,068
41,629,016
67,804,164
Environmental
Operating Expenses (Opex)
Environmental
Investments (Capex)
2012
2013
2014
ENVIRONMENTAL EXPENDITURE
BY TYPE – in R$
17,487,837
64,692,581
48,132,668
24,880,414
31,826,306
2012
9,475,277
62,082,463
Other Environmental
37,875,439 Expenses
Environmental
Prevention and
Management Expenses
Waste Disposal,
Treatment of Emissions
and Remediation Expenses
2013
2014
ENVIRONMENTAL EXPENDITURE
By Region – IN %
2% 4%
2%
92%
54
VCBR
South America
VCEAA
VCna
VOTORANTIM CIMENTOS
Business Overview
Materials – clinker/cement
factor
One of the main challenges for
sustainability in the cement industry is to reduce the clinker/cement
factor, that is, the amount of clinker
used to produce each ton of cement.
Reducing this factor is important for
reducing CO2 emissions, since the
manufacture of clinker consumes
fossil fuels.
Because of this, one of our major
focuses of research is to find new additives to replace clinker, while maintaining cement quality standards.
Today, our average clinker/cement
factor is 74.7%. We have achieved this
by the use of alternative cementitious materials, mainly, natural or
artificial pozzolan, limestone, steel
furnace slag and fly ash (the residue
from burning coal in thermal electricpower plants). Our goal is to reach a
clinker/cement factor of 72% by 2020.
Clinker/Cement Factor
Target for 2020: 72%
81%
76%
75%
74%
1990
2012
2013
Award-winning practice:
use of pozzolan in the Porto
Velho and Nobres plants
A number of issues affect progress in
this area, particularly, the legislation
and the availability of cementitious
materials in the various regions. In
North America, for example, we have
plants with a clinker/cement factor of
96%, due to restrictions on the use of
additives. In Brazil, we have units with
a high proportion of eco-efficient materials. In the Cubatão plant (SP), for
example, the use of slag has reduced
the clinker/cement factor to 65%.
Pozzolan
produced at the
Porto Velho plant
By investing, in partnership with
suppliers, to develop furnaces that
activate clays by calcination, our
plants in Porto Velho (RO) and
Nobres (MT) have succeeded in producing high-performance artificial
pozzolan. The material presents
advantages compared to using
clinker, resulting in cement that has
greater strength and durability.
2014
As a result of using this material,
these units decreased the use of
clinker by 35% by the end of 2014.
Other benefits were: the production
of artificial pozzolan reduces CO 2
emissions by 50%, fuel consumption
by 25% and water usage by 40%,
compared to the conventional clinker production process. The project
was awarded the FINEP Award in the
category Sustainable Innovation.
55
Business Overview
4%
Energy
Other major challenges facing the
cement industry major, related to climate change, are to increase energy
efficiency and to promote the substitution of fossil fuels by alternative
fuels and bio-mass. The consumption of energy, both electrical and
thermal, is an important contributor
to CO2 emissions.
The reduction in electrical
energy consumption at
the Rio Branco do Sul Unit
in 2014. Since 2001, the
unit’s Internal Committee
for the Conservation of
Energy and Water has
originated a series of
changes to production
processes.
We have worked intensely to improve energy efficiency and co-processing. This involved redirecting our
investment priorities and working on
creating an internal culture of energy
conservation.
A benchmark for energy
efficiency in North America
Our plant in
Bowmanville,
Ontario, Canada.
Our plant in Bowmanville, Ontario,
Canada, was the first industrial complex in North America to be certified
for energy management under ISO
50001, in 2011. Since then, the plant
56
has continued to improve its efficiency, achieving a reduction in consumption of 10.3 million kilowatt-hours,
equivalent to savings of US $ 1 million
per year, from 2012 to 2014.
VOTORANTIM CIMENTOS
Business Overview
Specific Consumption of Electrical Energy
KWH/ton Cementitious Product
119.0
108.8
109.4
110.0
Energy efficiency
1990
2012
2013
2014
Note: The figure for 2014 does not include the North American operations
Thermal Energy - Substitution of Fossil
Fuels by Alternative Fuels and Biomass
%
7.6%
7.2%
6.6%
1.0%
1990
2012
2013
2014
One of the criteria for the allocation
of resources to constructing new
plants or expanding capacity is the
specification of more energy-efficient
equipment, even if the initial cost is
higher. One example is the installation of vertical mills, which consume
30% less energy.
These investments were complemented by measures to reinforce management and employee awareness. In Rio
Branco do Sul, the unit established a
Conservation Committee in 2001. The
committee has originated a series of
changes to processes. The result was a
reduction of 4% in the unit’s electricity
consumption during the year.
VCNA’s head-office in Toronto, Canada installed a triple combined-cycle
heat and power system, completed
in early 2015. This system will generate 100% of the building’s electricity
requirements using natural gas, with
heat recovery for its heating and air
conditioning systems. It will serve as
a pilot project for the adoption of this
technology in the whole region.
For Votorantim Cimentos as a whole
the energy consumption outside the
organization, principally transportation and distribution activities,
totaled 427,969 tons CO2 eq.
57
Business Overview
Energy and Water
Conservation
Committee
Members of
the Internal
Committee for the
Conservation of
Energy and Water
at the Rio Branco
do Sul Unit
Composed of volunteers from all
areas of the Rio Branco do Sul (PR)
unit, the Committee has focused
its activities on promoting the
efficient use, and reduction of
wastage, of water and energy. The
Committee set up teams dedicated
to the themes of education, fighting wastage and efficiency projects.
Among the initiatives undertaken in the area during 2014 were
projects related to improving the
energy efficiency of industrial
equipment and the small hydroelectric power plant in Environmental Square. They were also active in
social projects in the community.
New solutions for co-processing
We have installed co-processing
equipment in our plants that use biomass and waste, thus diversifying our
thermal energy mix and reducing fossil
fuel consumption and CO2 emissions.
Investments in co-processing
58
amounted to more than R $ 33 million during the year.
We installed an entirely new system
in the plant in Sobradinho (DF) and
retrofitted equipment at the plants
in Nobres (MT), Itaú de Minas (MG),
Sobral (CE) and Cantagalo (RJ).
VOTORANTIM CIMENTOS
Business Overview
GHG Emissions
For the cement plants, our inventory
of greenhouse gas emissions (GHGs)
is prepared in accordance with the
Cement Sustainability Initiative
(CSI) methodology and focuses
mainly on carbon dioxide (CO2). In
the case of aggregates, concrete and
complementary products, we adopt
the Greenhouse Gas Protocol. In all
cases the base year is 1990.
Our emissions have fallen substantially, compared to the base year,
due to three main factors: investments in the modernization of our
installations to improve electrical
energy efficiency; substitution of
fossil fuels by alternative fuels and
bio-mass (thermal energy); and the
use of alternative materials.
Specific CO2 Emissions
kg CO2/ton of cimentitious product
763
0%
763
5%
645
637
657
650
653
643
10%
15%
20%
1990
2012
2013
2014
Gross
Net
Reduction
Air Emissions
(PM, NOx, SO2)
We have accurate processes to manage and measure air emissions. Our
air emissions were audited by the CSI
and were considered to be 100% in
conformity with its standards.
In 2014, we invested in large projects
in Tunisia, where the wind makes it
difficult to control the dispersion of
particulate matter. The materials
storage areas and industrial installations were covered or sealed.
We have continued to present improvements in our indicators, with
significant reductions in emissions
of NOX and SO2 in our operations in
Brazil, Europe, Asia and Africa. This
was due to investments in air filtration systems and the containment
of particulate matter in the various
units and management.
59
Business Overview
Reduction of NOX
at the Vidal Ramos plant
Vidal Ramos
Plant
Inaugurated in 2011, the Vidal Ramos
(SC) plant has installed the first
vertical mill for cement grinding in
the company. In 2012, we initiated
an optimization project at the unit,
in order to substantially reduce urea
consumption and NOx emissions.
To achieve this, we invested in a
selective non-catalytic reduction
system, (SNCR) which uses urea
diluted to 40%, associated with
co-processing. For two years, we
conducted a series of adjustments
to processes and operations as well
as modifying equipment. Finally,
we achieved decreases of 35% in the
chimney emissions and of more than
50% in the consumption of urea,
during 2013 and 2014.
Specific Particulate Matter Emissions
Grams of PM/Ton of Clinker
0%
205
5%
10%
15%
143
114
20%
108
25%
30%
35%
40%
45%
Specific Emissions
Reduction (%)
50%
2000
60
2012
2013
2014
VOTORANTIM CIMENTOS
Business Overview
Specific NOx Emissions
Grams of NOx /Ton Clinker
0%
2,249
5%
1,977
1,599
10%
15%
1,599
20%
25%
30%
35%
40%
45%
2000
2012
2013
2014
Specific Emissions
Reduction (%)
0%
5%
953
792
683
10%
15%
20%
25%
30%
35%
2000
2012
Specific Emissions
Reduction (%)
In accordance with the internal policies for water management, we are
identifying which units are in waterstressed areas using the methodology called “Global Water Tool for the
Cement Sector” developed by the
World Business Council for Sustainable Development (WBCSD) and Aqueduct (World Resources Institute)
In addition to collecting the data necessary to use these tools, we monitor
the water levels in the principal dams
and reservoirs of the hydro-electric
plants in the National Interconnected System (SIN) for electrical energy.
Specific SOx Emissions
Grams of SO2/Ton Clinker
981
Water Resources
2013
2014
This strategy was adopted in order to
prioritize the management of data
on water resources for those units in
areas where water availability is more
critical. This is also a factor to consider in planning the expansion of the
company’s global operations. In this
way, we intend to have, in the years
to come, a water management plan
for all units in water-stressed areas.
Accordingly, in addition to setting
targets, we have internally disseminated best practices, such as
that implemented in our plants in
Turkey (see below). This stimulated
the search for solutions on this issue
throughout the company.
61
Business Overview
Our objective is to implement the
Water Management Plan, composed
of six main initiatives, for all the units
in water-stressed areas. The six initiatives are as follows:
1- Measurement and monitoring:
This consists of analyzing and understanding the unit’s water footprint,
measuring the amount of water used
in production, identifying the operational limits and locations for the
withdrawal and discharge of water.
2- Reduction in consumption:
This will be achieved through a variety of measures including water recycling and reuse. It will also require
changes in production processes
to make them more efficient and
reduce losses.
WATER: WE ECONOMIZE,
WE TRANSFORM
How Votorantim Cimentos impacts and is impacted by
water resources.
3-Protection of water resources:
We seek to protect the springs and
headwater areas that contribute to
restoring groundwater levels.
4- Promoting best practices:
We encourage our partners, suppliers and buyers to adopt sustainable
measures, and respect Votorantim
Cimentos’ Green Rules.
5-Innovation that protects the
environment:
This consists of the development and
implementation of more efficient
technologies for water treatment
and for reducing consumption.
6-Partnerships for a better future:
We enter into partnerships with municipalities, NGOs, and the scientific
community, to provide encouragement and contribute to developing
new technologies that stimulate
water conservation and improve
management systems.
62
We consume electrical energy
which is generated in hydroelectric plants that need dams
and reservoirs to store water in
order to operate.
Votorantim Cimentos’ units
and their local communities use
water directly for operations and
residential use respectively. The
water is withdrawn from surface
sources, such as rivers, and from
underground sources, through
boreholes. The discharge of
effluents into water bodies may
impair their quality. Because of
this, we regularly measure the
quality of our effluents and the
local water bodies and, when
necessary, we send the effluents
to an effluent treatment plant
before discharging them back
into the water bodies.
The protection of springs and
headwater areas that feed into
and maintain groundwater levels
contributes positively to improving the quality of water bodies
and the increase in flow rate.
Our concrete centers also consume large volumes of water
since it is incorporated in the
final product and embedded
in the construction of houses,
buildings, and other structures.
The operations and activities in
construction sites also consume
water and are part of, directly or
indirectly, the company’s construction value chain.
VOTORANTIM CIMENTOS
Business Overview
.
Water Consumption Cycle
as
1
HYDROELECTRIC PLANT
isso,
MINE
3
mento
6
COMMUNITIES
5
(7)
EFFLUENT
TREATMENT
PLANT
2
VOTORANTIM
CIMENTOS
l que
de
4
utras
HEADWATERS
somem
7
CONCRETE
CENTERS
um
rsos
bui
5
INDUSTRIES AND CITIES
8
WATER WITHDRAWAL
DISCHARGE OF EFFLUENTS
erias
63
Business Overview
Rain water used
to suppress
particulate matter
Cement plant in
Çorum, Turkey
64
The cement plants in Turkey have
a high degree of dependence on
groundwater, and this form of withdrawal requires deep boreholes.
To reduce the risks to the business
from the impact of new regulations,
our team has developed a solution
that is unique in the country’s cement industry.
Instead of filing for authorization
to use rainwater runoff a project
was set up to collect and reuse
rainwater for the suppression of
particulate matter. The initiative is
already responsible for 28.5% of the
water needed for the suppression
of particulate matter in the plants
in Yozgat, Çorum and Sivas. The
consumption of groundwater was
reduced by 21 thousand m3 per year.
VOTORANTIM CIMENTOS
Business Overview
Units located in water-stressed areas based on the Global
Water Tool, the Aqueduct Methodology and Votorantim
Cimentos’ internal criteria*
VCBR
Cement
Aggregates and
Concrete
9 units
9 units
14 units
VCEAA
Cement
7 units
* Global Water Tool - This tool, which enables companies to identify their water resource risks and opportunities,
was developed by the World Business Council for Sustainable Development (WBCSD).
Aqueduct - This tool, which is used to measure, map and analyze water resource risks at a global level, was developed by the World Resources Institute (WRI).
65
Business Overview
Target for
2020
Develop biodiversity management
plans for 100% of the units that overlap
with areas of high biodiversity value.
Biodiversity
[G4-EN11 and G4-MM2]
As a basis for managing biodiversity we have adopted the Cement
Sustainability (CSI) guidelines for
this topic and our commitments to
contribute to the Aichi 2020 targets
of the Convention on Biological
Diversity. We have identified the
operating units whose area of influence overlaps with areas of high
biodiversity value and each of these
units is responsible for preparing and
implementing a biodiversity management plan.
Votorantim Cimentos manages biodiversity issues using the Integrated
Biodiversity Assessment Tool (IBAT).
The use of the tool is coordinated by
the corporate environmental area,
which collects data from each unit.
In addition to using this tool, a consulting company was contracted to
carried out a survey of areas of high
biodiversity value for the units in
66
Brazil. This study was developed due
to the complexity of the systems of
classification of protected areas and
of the areas of high biodiversity value
in Brazil.
In 2014, based on these methodologies, we evaluated all of Votorantim
Cimentos’ mining areas in Brazil,
North America, and Europe, Asia
and Africa. Overall, we identified 120
mines, of which 58% (70 units) had
some degree of overlap with areas
of high biodiversity value in a radius
of 5 km. Following the updating of
the tool, we discovered that new
protected areas had been created.
This resulted in the need to prepare
a biodiversity management plan at
additional operating units.
Thus, as a way of addressing this
question, we set up a project to
prepare a Handbook on Best Environmental Practices in Mining, under
the SBE/RBMA/VC cooperation
agreement, in partnership with the
Atlantic Rainforest Biosphere Reserve (RBMA) and the Brazilian Speleogical Society (SBE). The project
aims to disseminate and implement
best environmental practices in the
mine’s life cycle, with an emphasis on
karst areas (occurrence of caves), in
order to promote and share positive and mitigating actions on local
biodiversity. This will contribute to
the construction of a new model of
sustainable development and should
be a commitment for Votorantim
Cimentos’ entire production chain.
Another initiative being carried out
under the SBE/RBMA/VC cooperation
agreement is the Social and Environmental Assets Project. This aims to
develop a Sustainable Land Management Model for limestone mining
in the Atlantic Forest biome. This
project includes the development of
the methodology and its application
in two pilot projects at the units in Ribeirão Grande (SP), which has already
been completed, and Laranjeiras (SE).
VOTORANTIM CIMENTOS
Business Overview
Private Natural
Heritage Reserve (RPPN)
in the Nobres unit
In December 2014, the area known
as the Tombador Waterfall Nature
Reserve, close to the Nobres
(MT) plant in Brazil, was officially
designated as a Private Natural
Heritage Reserve (RPPN), by the
environmental agency of the State
of Mato Grosso (Brazil).
In 2015, we will initiate the development of a management plan
that will establish the zoning
of the area and the norms that
should guide and regulate the use
of the area. The Reserve is a legacy
for all, but especially for the local
population.
area of more than 77 thousand
hectares, the Environmental Protection Area of the

Paraguay River
Headwaters (APA).
This preserved area of 296 hectares has been recognized to be of
high biodiversity value. It plays a
very important role in the preservation of the Cerrado and Amazon
transition biomes, since it forms
part of an ecological corridor,
together with another protected
With this, and its initiatives for
other protected areas, the company is contributing to achieving
Aichi Target 11, regarding conservation áreas, of the Convention
on Biological Diversity.
67
Business Overview
2012
2013
2014
Unit
Total number of units
81
119
120
Number
The total number of units identified as having the need for a
Biodiversity Management Plan (BMP).
47
62
70
Number
Percent of total units that were evaluated according to the criteria
for the need for a BMP.
58%
52%
58%
%
Number of units which have a BMP in place.
2
4
4
Number
Percentage of units which have a BMP in place.
4.3%
6.5%
5.7%
%
Identification of UNITS REQUIRING biodiversity
management plans
Areas of high biodiversity value
70
62
47
4
2
2012
2013
4
2014
Number of mines located in areas of high biodiversity value
Number of units with Biodiversity Management Plans in place
Plan for the closure
and recovery of units
[G4-MM10]
The plans for closure, deactivation, decommissioning, recovery
or rehabilitation of areas that were
developed from 2013 onwards were
prepared according to the Cement
Sustainability Initiative (CSI) guidelines on this subject.
The preparation and execution
of these plans are the responsibility of the respective units, with
68
monitoring by the global area for
the environment. The plans address
both environmental rehabilitation
and the relations with the relevant
stakeholders.
The action plan for the closure phase
includes the initiation of activities
to mitigate liabilities even while
the unit is still operating. A review
of the closure plan details is carried
out every five years to update the
measures to be taken and the costs.
The main advantage is to amortize
the final closure costs and mitigate
the liabilities.
In 2014, the closure plans for the
units in Sobradinho (DF) and Rio Negro (RJ) were initiated, with completion scheduled for the beginning of
the first quarter of 2015. Also by then
all VCBR cement units will have developed closure plans. Thus, for 2014,
of the total 120 units considered, 94
(78%) had already developed rehabilitation plans.
VOTORANTIM CIMENTOS
Business Overview
Aquaculture project in
the Aberfoyle unit
The Aberfoyle unit in Canada
carried out a project to prepare a
mining area that had been deactivated for a new use in the future.
This area, which was considered
to have potential for fish production, needed a few improvements
to enable the large-scale production of fish. The technical solution
implemented was composed of
rectangular basins or channels
made of concrete and equipment
with one input and one output,
taking advantage of the structure
of the mine. The flow of water is
continuous and is maintained at
the desired level of water quality,
which allows breeding in higher
densities in the trough. Moreover,
it is a closed-loop system, since
the organic waste from the final
process may be used for soil treatment and as fertilizer.
Oranges in the mines of
Cortijo Nuevo
In Spain, our plant in La Rinconada,
Seville, produces between 300 and
400 thousand tons of aggregates
per year. Today, alongside the opencast mining, there are orange trees
growing. This was made possible
by a land rehabilitation project that
runs in parallel with the mining
activities.
The mining operations began in
1994 and are only expected to be
closed down in 2035. Even so, 10
hectares have already been rehabilitated and planted with orange
trees. In addition an area is being
prepared to plant a further three
hectares. Thus, by the time the
mining operations in Cortijo Nuevo
are closed down, virtually all of the
area will have been restored to its
original condition and replanted
with orange trees.
69
Business Overview
Organic farming in
Peterborough
In North America, we had the challenge of developing a decommissioning plan for a limestone mine
owned by our aggregates plant in
Peterborough, Ontario in Canada.
In partnership with local farmers,
and with the help of consultants,
we established the goal of restoring
the soil quality to a level that would
not only allow agricultural production in the former mining area,
but also contribute to raising the
quality of the adjacent agricultural
areas, which had not had mining
activities.
VCNA mine in
Peterborough,
Ontario, Canada
The project began in 2012 and the
first two years were dedicated to
evaluating the effectiveness of a
variety of techniques for fertilization, seed mixes and crop rotations,
in an area of 937 m2. In 2015, the
area will be expanded, promoting
organic agriculture and increasing
productivity.
Plans for Mine Closures/Rehabilitation of Areas
Total number of operations that have
plans for closure/rehabilitation of area
Value of the total financial provision
for the closure of operations (R$)
70
2013
2014
93 (78%)
94 (78%)
194,757,886
180,000,000
VOTORANTIM CIMENTOS
Business Overview
Research and development
In Brazil we have restructured the
Research & Development and Quality
area, merging the departments that
had previously worked separately
in each business (cement, concrete,
aggregates and complementary
products).
already producing a new type of
cement in our Salto de Pirapora (SP)
plant by the addition of slag. In addition to providing an appropriate
and creative disposal method for this
waste the performance of the final
product was improved.
Large projects
The R & D team, which reports to the
Technical Directorate, works closely
with the Sales area to develop new
eco-efficient products and services
aimed at meeting consumer demands.
We are researching new sources
of cementitious materials. We are
Our research into improving the quality and reactivity of our products has
enabled the company to be considered as an excellent supplier for certain large hydro-electric plants under
construction in Brazil. We have signed
long-term contracts to supply cement
for the construction of the dams of
the hydro-electric plants in the Ma-
deira River complex (Santo Antônio
and Jirau), in Teles Pires, Mato Grosso,
and in Belo Monte, Pará, in which we
will supply more than 1 million metric
tons of products.
Quality Indicators
In 2014, our Quality Index of Products
(IQP) increased to 95%, an increase of
3% over the previous year.
Our contracts contain specific
product performance characteristics, with requirements that go far
beyond technical standards..
Permeable concrete
Another focus of the R & D area is
to find alternatives to substitute
the materials traditionally used in
construction.
A number of innovations have
been incorporated into our product
range. Two examples are self-com-
pacting concrete which, among
other advantages, increases the
speed of construction and reduces
the noise during its application,
and permeable concrete, which
helps improve drainage, contributing to flood prevention flooding
and rainwater reuse.
Demonstration of
self-compacting
concrete
71
Business Overview
What the
community is saying
In 2014, we carried out a second Favorability Survey.
The objective was to calculate a Favorability Index to
measure the institutional, social, economic and environmental impacts of our plants on the local communities. The survey was conducted in the communities
close to our plants in Cantagalo (RJ), Imbituba (SC),
Itaú de Minas (MG), Laranjeiras (SE), Muribeca (SE), Rio
Branco do Sul (PR), Sobradinho (DF), Sobral (CE) and
Xambioá (TO).
More than 400 interviews were conducted with a
representative sample of our stakeholders. The main
results were as follows:
Does Votorantim Cimentos contribute to the development of the municipality or region? - 91%
Is the company socially responsible? - 95%
Overall Favorability Index - 85%
Would you like to work in the company? - 70%
Community Engagement
[G4-SO1]
A structured program of activities
with the local communities in the
locations where we are present is a
strategic element for the future of our
operations. By promoting the development of communities, we create value
for society and our business, strengthening our values and our reputation.
It also improves the work atmosphere
in our operating units contributing
to a higher level of motivation and
increased competitiveness.
In 2014, in partnership with the
Votorantim Institute, we sponsored
94 social projects in 31 locations in
72
Brazil, in four areas: human capital
(education, culture, sports, work,
rights of children and adolescents);
institutional capital (strengthening
NGOs and public administration);
social capital (stakeholder engagement, community councils); and
economic growth (generation of
jobs and income and development
of local suppliers).
The social investment for the year
of R$ 16.38 million was almost 35%
higher than for 2013. This increase
was due to the expansion of the
social responsibility initiatives in our
operations. Our social investment
decisions are guided by medium and
long-term strategic goals, which
have been defined considering the
social characteristics of the communities and prioritized to help us
to identify in which locations we will
act more decisively.
The locations were prioritized according to: representativeness, the
degree to which our operations impacted the community and the community impacted our operations. We
have prioritized 36 of our 53 cement
plants in Brazil, and for 31 of these
we have developed long-term plans
(5 to 10 years).
VOTORANTIM CIMENTOS
Business Overview
35%
The increase in the amount
of social investment in
2014, compared to the
previous year.
Some examples of projects that
focused on our relations with
communities, which were carried
in 2014 in Brazil, are as follows:
ReDes (“Networks”) Program
This program is a partnership between
Votorantim Cimentos, the Votorantim
Institute, and the National Bank for
Economic and Social Development
(BNDES). The program promotes inclusive business, and focuses on structuring production chains in municipalities
with critical social indicators.
We have a total of 11 ongoing projects
in the communities near our plants in
Xambioá (TO), Sobradinho (DF), Cantagalo (RJ), Laranjeiras (SE), Rio Branco
do Sul (PR), Vidal Ramos (SC), Várzea
Grande (MT) and Nobres (MT ).
A good example of the program’s
potential is “XambiArt “, a handicraft
business set up by 19 women in
Xambioá (TO). They received technical
training and support in management,
manufacturing and marketing for the
production of bio-jewelry and handicrafts, using materials such as mud,
clay, coconut and straw.
Cantagalo (RJ), Rio Branco do Sul
(PR), primavera (PA), Vidal Ramos
(SC) and Edealina (GO).
This program offers technical support
and training to municipalities for
the development of projects aimed
at modernizing management in tax,
administration, education and health,
as well as the development/revision of
the Municipal Plan for Basic Sanitation
or the Participative Master Plan. Our
actions followed the guidelines of Law
10.257, (“Estatuto das Cidades”), and
other applicable legislation.
The preparation of detailed plans
and projects enables municipalities to raise funds to improve basic
infrastructure through federal
government programs. The program
is present in six municipalities. Due
to the program the municipality of
Cantagalo (RJ), obtained a loan of R$
14.9 million from the National Health
Foundation, for a project to collect
and treat sewage. According to the
newspaper Valor Econômico around
70% of municipalities fail to obtain
federal funds for sanitation projects,
for lack of a plan.
Training of the local workforce
Overall, in 2014, more than 1,600 families in these communities benefited
from the ReDes program.
Public administration support
program In 2014, we contributed to
strengthening public administration
in six municipalities: Xambioá (TO),
Our training programs provide
opportunities for young people in
socially vulnerable situations to
improve their level of qualifications
and access to the labor market. We
offer training courses in technical
professions and also in the general
preparation for entry into the labor
market. They are carried out with
highly respected institutions such as
the National Industrial Apprenticeship
Service (SENAI), the Federal Center
of Technological Education (Cefet),
the National Rural Training Service
(SENAR) and ESPRO, which prepares
young people to be apprentices.
Another initiative is the Evolve
program which provides technical
training in maintenance (mechanical,
electrical and mining.
Infrastructure support
In order to stimulate social and
economic development, we have
contributed to the improvement of
infrastructure in the locations where
we operate or plan to operate. We help
meet the communities’ demands by
establishing partnerships and technical cooperation agreements, identifying infrastructure needs and assisting
in contacts with the relevant instances
of government.
One example is a program in the municipality of Primavera, in Pará, where
we plan to construct a new plant. Even
before starting to construct the plant
we signed a Technical Cooperation
Agreement with the municipal
government, in partnership with
the Votorantim Institute. The agreement focuses on long-term initiatives
in six areas: infrastructure and basic
sanitation, education, health, social
action, training for public administration and the promotion of productive
and cultural chains.
73
Business Overview
Breakdown of Social Investment
4%
2%2%
4%
4%
5%
5%
5%
6%
47%
7%
9%
ReDes Program
Public Administration
Professional Training
Development Projects
Education
Culture
Votorantim Program for Education
Sport
Rights of Children and Adolescents
Organizational Proficiency
Management and Logistics
Engagement with stakeholders
Community Councils
Throughout the year, we developed
engagement plans with stakeholders
in 10 locations. We identified strategic
groups and material issues and established action plans to improve our
relations with our local communities.
Another important engagement
initiative was the establishment of
Community Councils. This serves
as a communication channel with
the community, and aims to arrive
at balanced solutions in responding
to the demands of the various local
stakeholder groups
Based on these plans, we implemented a number of initiatives in these
locations. At the Salto de Pirapora
Unit (SP), we implemented the project called “Beyond the Walls” that
aims to promote the engagement of
our external and internal stakeholders through educational, social and
financial development initiatives.
The project consists of 14 initiatives
divided into six focus areas: dialogue
and relations; safety; the environment; professional training; sport;
and volunteering. Some of them
have already been integrated into the
unit’s day-to-day routine.
74
To date we have sponsored the establishment of 13 Community Councils in the municipalities of: Xambioá
(TO), Laranjeiras (SE), Cuiabá (MT),
Sobradinho (DF), Itaú de Minas (MG),
Cantagalo (RJ), Rio Branco do Sul
(PR), Vidal Ramos (SC), Imbituba
(SC), Salto de Pirapora (SP), São Luis
(MA), Sobral (CE) and Jaboatão dos
Guararapes (PE).
These councils are composed of
representatives of business and government and local opinion leaders.
They prepare, collectively, an agenda
VOTORANTIM CIMENTOS
Business Overview
Investimento em
Infrastructure
investment
infraestrutura
Valores
Amounts i
nvested
(R$)
(R$)
Investidos
Number of
Público
Beneficiado
beneficiaries
Duração
Period ofdo
investment
Investimento
Primavera
Acesso em
Estrada de (PA)
Road
Primavera
Access
R$ 9,000,000
9.000.000
Morede
Mais
than
5.000
5,000
beneficiários
beneficiaries
11ano
year.. Concluído
Completedem
in
de 2014
Dezembro 2014
December
to promote community development, with initiatives in areas such
as education, culture and entrepreneurship.
The methodological approach
encourages a productive dialogue
with our various stakeholder groups,
which include other cement companies in region. It aims to mobilize
the various social actors to develop
solutions that lead to an improved
quality of life in these communities.
Infrastructure support [G4-EC7]
In 2014, Votorantim Cimentos, in
partnership with state governments,
developed two projects focused on
investments in infrastructure and
services: access roads in Primavera
(PA) and Edealina (GO). Both initiatives were aimed at improving safety
indicators and the quality of life of
the communities surrounding the
company’s operating units.
People Management [G4-10]
Empowered people
The alignment of the organization
structures in the various regions
to manage their strategies led to
advances in the use of best practices
in people management. Within this
broader view, in 2014, the Global Executive Team (GET) approved policies
that began to guide the units’ actions
as from 2015.
The overall goal is to reinforce Votorantim Cimentos’ position in the
market as an employer of choice,
with its reputation founded on
people’s willingness to work with us.
To achieve this, we have developed
what we call the People Cycle, which
is an annual schedule of activities,
involving mangers and their teams.
All managers participate in these
activities which include: cascading
down of targets; reporting results;
awarding bonuses; performance
evaluations; a process of open
dialogue between managers and
employees; and the definition of individual development plans in order to
raise employee performance.
Our objective, with these initiatives,
is to ensure that our approximately
16 thousand employees feel valued
and have the opportunity to build a
successful career in the company.
Our vision is to have the best team
in the industry, made up of people
who are highly trained and have a
pro-active attitude to make things
happen, at the pace that the business demands.
75
Business Overview
The workplace
environment
we want
Transparency, open dialogue, connected
people, appreciation of our products
and an inspiring atmosphere. These
are the points that guide our people
management initiatives.
The new global headquarters of
Votorantim Cimentos in Brazil, in the
district of Vila Olímpia, São Paulo (SP),
reflects this aspiration.
76
VOTORANTIM CIMENTOS
Business Overview
Total number of employees [G4-10]
Own Employees
Men
Women
Total
Paid Monthly
11,116
1,514
12,630
2,430
143
2,573
6
5
11
291
274
565
13,843
1,936
15,779
Men
Women
Total
46
3
49
Manager/General Manager
466
87
553
Coordinator/Consultant
423
128
551
2,622
646
3,268
6
5
11
9,989
793
10,782
291
274
565
13,843
1,936
15,779
Men
Women
Total
Fixed-term Contracts
368
285
653
Permanent Contracts
10,478
1,355
11,833
10,846
1,640
12,486
Paid Hourly
Trainees
Others
Overall Total
Fixed employees by job category – 2014
Job Category
Director/President
Technician/Analyst/Supervisor
Trainee
Operator
Others
Total
Number of employees by type of contract – 2014
Total
Note: The data from VCNA was not included in this table. This is the reason for the different total number of employees reported in the other tables above.
77
Business Overview
Number of employees by type of employment – 2014
Men
Women
Total
Full-time
10,555
1,366
11,921
Part-time
291
274
565
10,846
1,640
12,486
Total
Nota: The data from VCNA was not included in this table. This is the reason for the different total number of employees reported in the other tables above.
Number of contract staff by region – 2014
Men
Women
Total
South Region
2,015
467
2,482
Southeast Region
3,807
573
4,380
Center-West Region
1,440
196
1,636
0
0
0
1,271
225
1,496
8,533
1,461
9,994
North Region
Northeast Region
Total
Note: The data on employees by region refers only to Brazil.
Development and training
[G4-LA11]
In 2014, we utilized the Votorantim
Development System (VDS) [LA11]
at all organizational levels in Brazil
and North America, covering 100%
of our employees. In the case of our
VCEAA (Europe, Asia and Africa)
operations, which were acquired only
recently, in 2012, the VDS system did
not cover all operational positions.
The VDS is a system that encompasses
the complete cycle of performance evaluation and career planning. Employee
performance is evaluated in relation to
the company’s vision and strategic drivers. Each employee receives feedback
and, together with his/her manager,
agrees on the development actions
necessary to increase performance and
take the next career steps.
78
To support this process, a study
was carried out to identify all the
operational and management
job categories at a global level, and
to the knowledge required for each
category. Based on this, we set up
a new series of technical training
courses, thus increasing the level
of transparency in employee career
expectations.
We started to structure a corporate
university to support the business
needs, with programs related to the
company’s four strategic drivers. For
the year, the investment in employee
training totaled R $ 15.1 million.
VOTORANTIM CIMENTOS
Business Overview
Average Hours of Training per Year
By Employee Category
2013
2014
Apprentice
5.56
9.4
104.65
Intern
20.84
21.84
Operator
55.42
120.00
Trainee
82.32
Technician/Analyst/
Supervisor
113.24
59.57
62.27
Coordinator/
Consultant
Manager/
General Manager
Director/President
179.14
34.91
68.90
25.37
7.87
To increase our rate of internal
promotion, which has been stable
for four years at around 69%, we
revitalized the Potentialize Program
and initiated the Master Leadership
Program. This latter program, which
lasts 14 months, is aimed at training
a group of 38 managers and general
managers to take on new challenges. The rate of internal promotion
for senior management was 70% in
the year.
Recruitment and selection
Turnover and recruitment
[G4 – EC6]
In 2014, we advanced in our
discussions on the development of
a Global Recruitment and Selection
Policy. This is aimed at strengthening
our commitment to hire and develop
local labor, by giving priority to
candidates from the country that
originated the vacant position. Local
labor is defined as persons born or
naturalized in the country where the
operation is located. In the case of
Brazil, 95% of senior management
(general managers, directors
and presidents) and 99.9% of the
workforce met the criteria for local
labor for the year.
We recorded a 4% reduction in
turnover in the cement area. This decrease was due to the improvement
in the process of exit interviews,
enabling us to identify problems with
greater precision and to respond in a
more focused way to find solutions.
For management positions, we prioritize internal recruitment. This policy
is managed using the Votorantim
system for advertising job vacancies called “Moves”, and the abovementioned Votorantim Development
System. In 2014, 70% of the vacancies
for leadership positions in Brazil
were filled by internal candidates.
In addition, in order to promote the
international development of our
highest performing employees, and
leverage the business and activities,
a clear policy of global mobility for
the management of international
missions was developed.
We expect that the company’s average turnover, which was 28% in 2014,
will continue to reduce as a result of
the ongoing improvements in the
processes of the People and Management area.
During the year we recruited 2,500
new employees. To attract talented
people, we improved our Internship
Program by creating a schedule for
the regular monitoring of these young
people. We held the third edition of
79
Business Overview
the Cement Leaders Program. Under
the program nine young engineers will
undergo an 18-month training course
preparing them to become future plant
managers. Another initiative was the
Trainee Program where we selected
nine graduates from around 800
candidates after a selection program
that began with 10,200 applicants.
4%
The decrease in turnover
in 2014, compared to 2013.
Remuneration and Benefits
We have adopted a remuneration
policy consisting of fixed and variable
components. That is based on performance and rewards employees who
are aligned to the company’s strategic
objectives.
For managers and specialists in Salary
Group (GS) 29 and above, the variable remuneration is calculated based
on their performance in relation to
individual and corporate targets. For
operational employees in GS 28 and
below, collective goals are established.
The variable component is allocated
according to the job category and the
salary group. The employee receives
an increase in total compensation provided he/she achieves the indicators established in his/her target dashboard.
To define the GS, the job categories are
evaluated according to the requirements in terms of knowledge, complexity and responsibility
for results.
The total remuneration is complemented by a benefits package. In
addition, to the standard items, the
package includes maternity leave of six
months, reimbursement of expenses
for children’s school materials and a
private pension plan
Internal communication
The mission of Votorantim Cimentos’
internal communication is to contrib80
Turnover (%)
By Age Group
2013
2014
14.00
12.34
9.00
6.57
2.00
Less than
30 years old
Between 30
and 50 years
old
3.05
More than
50 years old
Rate of New Hires (%)
By Age Group
2013
10.30
2014
10.60
9.21
10.08
0.60
Less than
30 years old
Between 30
and 50 years
old
1.01
More than
50 years old
VOTORANTIM CIMENTOS
Business Overview
ute to the dissemination of the desired
corporate culture through communication initiatives that strengthen our
employees’ pride and sense of belonging. Our communication channels
are designed to reach all employees,
regardless of their position or location.
We use face-to-face communication
to disseminate our vision, strategic
drivers and targets, so that each
employee can understand the value of
his/her work in relation to achieving
the company’s business goals.
In these face-to-face interactions,
the employee is encouraged to ask
questions, discuss and learn about the
company’s strategy and participate in
the debate on how we can achieve our
targets. Managers interact with their
team members in discussion forums,
breakfasts and open meetings. These
events are supported by unit focal
points that prepare presentations and
use other methods to add dynamism
to this employee engagement process.
One of the face-to-face events most
appreciated by our employees in
Brazil, which occurs quarterly, is called
“With VC”. In this event the company’s
President speaks directly to employees, live and via satellite link, about
the company’s strategy and current
performance and the situation of
markets in which we operate. Any
employee can send questions before
or during these transmissions in a
number of different ways (SMS, email
and WhatsApp).
In 2014, with the aim of strengthening
the “One team, One Company” philosophy, we took an important step in establishing a communication platform
for all the countries where we operate.
We developed a comprehensive policy
on internal communication, based on
macro policies, procedures and instru2014 Integrated report
ments. The aim was to enhance local
communication practices and establish synergies between countries,
encouraging dialogue, and face-toface communication. In addition, we
launched our first global newsletter,
called “Connection” and distributed it
to all the managers. This newsletter
aims to divulge the President’s messages, disseminate best practices and
provide information on the highlights
of our businesses and operations.
For 2015, the challenge is to consolidate this global platform. Firstly, we
need to evaluate the internal communication vehicles that already exist
in the regions in order to develop an
international system of internal communication. Secondly, we need to
ensure that the information distributed is consistent and aligned with
the corporate identity, while respecting local peculiarities. Thirdly, we plan
to launch a global intranet, “One VC”,
our first global internal social media.
One VC will connect all company
employees and facilitate the formation of work groups, the exchange
of information, the sharing of files,
and will have traditional social media
features, such as, “Like”, “Comment”,
“Share” and “Follow”.
Our current internal communication
vehicles are as follows:
Connection – global channel; strategic information for managers in the
regions; quarterly.
One VC – global intranet; news,
policies, guidelines, values, beliefs
and social interaction; aimed at employees in administrative functions in
the regions; updated daily.
Com VC – web-conference; direct
communication between the presi-
dent and employees; strategy, best
practices, recognition, questions
and answers; aimed at employees in
administrative functions; quarterly
Executive Report – electronic
report for managers; strategic
information; guidelines, procedures,
projects, placements; published on
an ad-hoc basis.
Radar – newsletter which is specific to countries and companies; issues
relevant to operations, new projects
and programs, product launches,
awards, recognitions, events, promotions, transfers and internal job
opportunities; aimed at employees in
administrative functions in countries
and companies; weekly.
Unit Radar – bulletin for specific
operating units; news, awards, recognitions, initiatives, drives, promotions, transfers and internal job
opportunities, local events; aimed at
employees in administrative functions in countries and companies;
weekly.
Psst – corporate newspaper for
distribution on bulletin boards with
pages for local items; best practices
between units, countries and businesses, promotions, transfers and
internal job opportunities, awards,
production records and number of
days without accidents, training,
celebrations; aimed at employees in
operational functions; weekly.
E-Psst – electronic version of the
corporate newspaper; news specific
to the Units; best practices between
units, countries and businesses, promotions, transfers and internal job
opportunities, awards, production
records and number of days without
accidents, training, celebrations;
81
Business Overview
aimed at employees in administrative
functions; daily publication.
First Hand – an e-newsletter for the
regions; companies and countries;
important and highly relevant news;
functions; published on an ad-hoc
basis.
Right Now – newsletter for the regions; companies and countries; news
which is urgent and of public interest;
functions; published on an ad-hoc
basis.
VC Portal – exclusive intranet for
Brazil; institutional information,
news, products, applications, portals;
functions; updated daily.
new methodology for this survey to
make it more focused and objective.
The survey was carried out in Brazil in
2014, and will be applied in all other
countries in 2015 and then every two
years on average.
The survey registered an increase of
six percentage points in favorability
compared to the previous survey, conducted in 2012. The overall favorability
index increased from 66% to 72%.
It should be remembered that all
employees have access to the Ombudsman to report conflicts with our
Code of Conduct, in total confidence.
The Ombudsman service is widely
publicized internally and in the integration information package given to
new employees.
maintain the diversity of our workforce.
In relation to the proportions of men
and women employed, the company
aims to develop, as from 2014, the concept of “Model Units”. Under this concept at least one unit in each business
must be a benchmark for this theme.
In late 2013, the project began to be
implemented in Cajamar (SP), where at
that time 90% of the employees were
men. In that unit, the company plans
to increase the proportion of women
in the workforce structural projects.
These range from providing support for
primary education in local schools to
improvements in the units themselves.
Diversity [G4-LA12]
Listen and speak
Our leaders are encouraged to be in
regular and direct communication
with their team members, listening
to their opinions and sharing challenges. Another important mechanism is the Climate and Engagement Survey. We have adopted a
82
Promoting diversity is a topic that has
received more and more attention.
We have had many discussions in order to make progress on the subject.
In our day-to-day activities we are
committed to recruiting people with
special needs as part of our efforts to
VOTORANTIM CIMENTOS
Business Overview
Relations with
Shareholders and
Investors
% Female Employees
10.90
12.27
10.90
9.15
2.54
2.30
0.81
1.38
2013
2014
Management/Coordination Positions
Operational Positions
Interns and Apprentices
Total Female Employees
% Employees more than 50 years old
17.97
16.57
9.72
8.88
0.83
The establishment of an Investor
Relations area in 2014 brought Votorantim Cimentos in closer contact
with international investors, rating
agencies and lenders in Brazil. Up until
2013, under the previous governance
structure, this role was performed
centrally by the industrial holding
company, Votorantim Industrial.
0.01
2013
1.36
0.01
2014
Management/Coordination Positions
Operational Positions
Interns and Apprentices
Total employees more than 50 years old
Following the creation of the new
area, the objective is to improve the
company’s relations with the financial markets, enabling the company
to have a constant and diversified access to sources of funding in order to
finance our expansion plans in Brazil
and overseas. The main challenge
is to continue to evolve in terms of
transparency and communication
channels, with a schedule for the
regular disclosure of information.
For this reason, we have reinstated
the website for relations with investors and have begun to establish a
schedule for press conferences, visits
to investors and participations in
national and international industry
events.
Customer Relations
In 2014, we transformed the way that
we manage our relations with customers. One of the company’s strategic drivers, Customer Focus, inspired
a significant change: the company
began to focus on customer needs,
and not only on its own products.
We developed an internal project
called “Galileo” where the customer
is at the center of the “Votorantim
Universe”. We undertook studies to
83
Business Overview
“There was a big change in Votorantim
Cimentos’ level of customer service. In our
case, we were having difficulty in producing
a certain type of roofing. The team at
Votorantim Cimentos came up with a
solution that added value to our product.”
Marco Daroz, Managing Director of Infibra, a manufacturer
of fiber-cement corrugated sheets and a customer of
Votorantim Cimentos since 1970.
deepen our knowledge of each of
our target segments (real-estate,
self-construction, infrastructure
and industry) and targeted our actions on the specific needs of each
segment.
We carried out research to understand these segments in detail,
which we referred to as “paths”.
We tried to understand who these
customers were, where they were located, what they needed, what were
the main difficulties that they faced
on a daily basis, how they earned
their money, and other aspects. We
did all of this to be able to structure
and provide solutions and products
according to the needs of each one.
The Sales team was restructured, to
improve efficiency and increase the
reach of the network. As a result,
we began to work with a new sales
approach where one salesperson
became responsible for serving the
customer, for all ranges of products
and services, and no longer a different salesperson for each range, as
had previously been the case. The
new approach was first tested, in a
pilot process in 2013, and was then
implemented in all the regions during 2014.
84
We already had a competitive advantage when we started this project
since, in Brazil, we can offer, in all
geographical regions, a wide range
of basic construction materials:
cement, concrete, aggregates and
complementary products (including
mortars and lime).
In Brazil, we increased
our customer base
by about 10% to
around 60 thousand
companies, of which
45 thousand are active.
Through our Customer Relationship
Center (CRC), we offer a number of
alternative channels for customer contacts and self-service. For self-service
we offer systems for Interactive Voice
Response (IVR) and Short Message
Service (SMS). By using these systems
the customer can check his order or
credit limit and request duplicates of
invoices. This can also be done through
the internet, via the company’s portal
“VC Online” (vconline.vcimentos.com.
br). The VC Online portal, in addition
to the above-mentioned options,
allows the customer to place orders
24 hours a day and 7 days a week, and
make payments.
We view this is being a significant
change in culture: based on a better
understanding of each segment, we
can anticipate customer demands, by
having information on his planning, the
products he will consume, when he will
need them and what form is required.
VOTORANTIM CIMENTOS
Business Overview
“With the new system of customer service, we are establishing
a much more mature relationship in which each side has the
opportunity to explain its needs so that together we can find
solutions. This proximity has enabled a substantial increase in
contracts. We were able to acquire industrial materials, which
we had previously produced ourselves on site, with gains in
quality and process reliability.”
Yorki Estefan, Director of Engineering at Conx Construtora e Incorporadora a
Votorantim Cement customer for the last 23 years.
Customer relations and
satisfaction [G4-PR5]
In 2014, in addition to the new sales
approach, we invested in developing
closer relations with the professionals working in the construction
sector. We launched a campaign
to recognize and value the work of
bricklayers and construction site
foremen, who have important roles
in this market. We provide trained
for bricklayers and also demonstrate
our products and technologies to
engineers and consultants.
In 2014, we conducted training
courses for 12,541 building site professionals throughout Brazil, in order to
demonstrate our products and their
applications.
We adopted a new methodology for
our customer satisfaction survey,
the “Net Promoter Score (NPS)”,
which indicates the percentage of
customers who would recommend
our company. In this type of survey,
the client is asked to assign a grade
to Votorantim Cimentos, on a scale
of 1 to 10, where 0 is “I would definitely not recommend” and 10 is “I would
definitely recommend”. Customers
that attribute scores of 9 or 10 are
classified as “promoters”. The Net
Promoter Score is calculated by subtracting the percentage of detractors
(scores 1 to 6) from the percentage of
promoters (scores 9 and 10).
In the first survey we carried out using this methodology, the NPS for the
self-construction segment (cement,
mortar and lime) in Brazil was 44%.
In 2015, we will extend the survey to
all the other customer segments.
In addition to calculating the NPS, for
those customers that contacted our
Customer Relations and Customer
Service, Centers, we conducted a
survey of post-service satisfaction.
At the end of every telephone contact
the customer is transferred automatically to the survey, which consists
of two questions: Has your request
been resolved? How would you rate
the service received? Based on this
information, we started monitoring
the rate of resolution of requests on
the first contact, First Call Resolution
(FCR), and the degree of customer
satisfaction with the service received,
enabling us to take corrective actions
and strengthen customer relations.
Another method for measuring cus-
tomer satisfaction, specifically in the
case of concrete sales, is to send the
customer an SMS on the day after
the receipt of the product/service.
The client replies by rating his level of
satisfaction with the product/service
received on a scale of 0 to 5. In 2014,
the average customer rating was approximately 4, which indicated that
there had been consistent improvements in this regard. For 2015, our
target is to achieve an average rating
of 4.5.
Supplier Management
[G4-12, G4-13]
Strengthening
partnerships to advance
In 2014 we began to restructure our
Procurement area. In this project,
referred to internally as “No Borders”,
we revised processes, restructured
the area’s organization, and reviewed
the way in which it approached the
supplier market. The goals of the
Procurement area are to increase the
level of service to internal customers,
and to increase the creation of value
for Votorantim Cimentos, through
stronger relations with suppliers,
continuous improvement, research
and development and innovation.
85
Business Overview
Our Goal for
2020
Promote sustainability in our
value chain.
Lighter-weight
cement bags
The teams responsible for the main categories of products purchased are headed
up by trained managers who know
these supply chains in great detail. These
managers also play a strategic role, by
defining which are the most appropriate
suppliers for each category. This process
includes evaluating the the supplier in
relation to financial, environmental and
social criteria, as well as checking the
necessary legal licenses and certificates.
The evaluation covers the use of materials, reverse logistics, environmental and
social improvements and projects, both
existing and planned.
We carried out a project, together with a supplier of
paper products, to develop a lighter-weight cement
bag, which would consume less paper and, therefore,
natural resources. As a result of the project we obtained
cost savings, which were shared with our suppliers.
The overall goal is to make the system
more robust, obtaining benefits that go
far beyond the price, by considering the
total cost of supply, including productivity. Understanding the entire supply
chain in depth, at national and global
levels, helps us to identify opportunities
and risks, establish partnerships and
achieve improvements in raw materials and more appropriate services. For
example, we managed to reduce the
consumption of explosives in our limestone mines.
86
VOTORANTIM CIMENTOS
Business Overview
This approach presents a wide range
of opportunities. It enables us to identify new technologies, anticipate cost
pressures and supply constraints, and
build joint solutions that benefit both
sides. In addition, based on a better
understanding of the supply chain, we
can seek alternative forms of supply,
reducing risk and increasing value
creation.
In 2014, 49.53% of the total purchases made by Votorantim Cimentos
were contracted from local suppliers. The criterion for defining local
suppliers of inputs and services is
that they are registered in the same
Brazilian state as the operating unit
that makes the purchase.
Also in 2014, we initiated a pilot
project in the plants in Xambioá
As part of this restructuring process,
(TO) and Sobral (CE), called the Supwe created a global procurement
plier Development Program (SDP)
group with company representatives
which has the objective of identifyin Brazil, Europe and North America.
ing potential local suppliers and
It is a benchmark group that meets
developing them, with the support
every 45 days, to identify the best prac- of local government authorities and
tices in the area of global

suppliers. As trade associations. The program
a result of this initiative, the Brazilian
will continue in 2015 and we have
procurement team, because of its exalready held business meetings in
perience in the company’s expansion
both municipalities, where we exprojects in Brazil, participated in the
plained the company’s procurement
purchase of equipment for the expan- processes. We also met with dozens
sion of our plant in Turkey.
of local suppliers, to find out more
about their products and services.
Development of local
suppliers [G4 – EC9]
We created a regional procurement
structure, which is responsible for
developing the local service providers
in those regions where we have operations. The goal for 2015 is to sign
contracts at each manufacturing
plant for selected service categories.
Our Procurement area, in partnership with the Votorantim Institute,
is responsible for identifying and
developing local suppliers.
Additionally, we have the Contract
Management Program (for the
certification and evaluation of suppliers). This contributes to achieving
our aim to develop our trading partners and to maintain sustainable,
long-term, relations.
Logistics in Brazil
Transportation is an important
component of our supply chain 60% of our freight requirements are
carried out by trucking companies
and 40% by independent truckers.
By increasing fleet productivity and
implementing structural projects,
we have been able to meet our cost
targets, without re-passing inflation
in the freight costs, which makes us
more competitive.
We have made improvements in
our facilities for receiving truck
drivers and the process for truck
reception and loading was automated, with the implementation
of the Totem Project. The manual
system for controlling the queue of
trucks, using coded paper tickets,
has been replaced by a biometric
system, where, on arrival, the
driver places his finger on a totem.
Once properly identified, he is
informed, through a panel at the
entrance gate, of the waiting time
before loading. In the units, where
a pilot project has been implemented, the driver can wait inside the
plant, where he will have access to
our facilities, including bathrooms
and a snack bar, or in his truck. He
will be informed of his loading time
by an SMS message.
For the company as a whole we
handle around 5 thousand truck
movements per day, and, in 2014, we
moved around 29 million metric tons
of raw materials and finished products. Having resolved the queuing
system issue, making it more organized and transparent, our next goal
is to reduce the average customer
service time (TMAC), that is, the time
between the truck’s arrival and its
exit with the product. We are now
developing projects to reduce TMAC.
Furthermore, due to the high cost
of diesel, which currently represents
about 35% of our total transportation costs, we have increased the
volume of our railway transportation
budget for 2015 by 20%, with a focus
on the South and Northeast regions.
Approval of suppliers
[G4-EN32, G4-LA14 and G4-HR10]
In 2014, in Brazil, we increased
the requirements in our supplier
approval process. We added a new
criterion to the selection process,
which already included the prohibition child labor or compulsory labor,
and compliance with environmental
and labor laws.
87
Business Overview
427
The number of new
suppliers approved in
2014.
The new criterion, effective immediately, is to exclude any supplier
mentioned in a report issued by the
Federal Comptroller General (CGU),
which lists companies considered
disreputable and those punished
under the Anti-Corruption Law (no.
12,846/2013).
pliers are eligible to compete in our
program of awards and certifications.
In 2014, we approved a further 427
suppliers.
Relations with trade unions
We use an approval matrix to identify
those critical suppliers, considering various aspects, that must go
through the approval evaluation
process. On the basis of this analysis we decide to contract, or not, a
particular supplier. If approved, the
contract is valid for one year. Also,
if the supplier does not keep his approval process up to date, then when
it comes up for renewal, he will be
considered for replacement.
Concerning the environmental
criteria, the approval matrix considers the suppliers that are critical to
ensure the quality of the final product. They must demonstrate that
they comply with the environmental
legislation, and our environmental
policy and green rules, among other
documents.
We verify their compliance with human rights and labor requirements
by checking documents. Furthermore, the contracts include clauses
that prohibit child, forced or compulsory labor. We check 100% of our
suppliers against a list of companies
identified with practices published by
the Ministry of Labor. Such companies are blocked in our supplier
control system.
We encourage suppliers to comply
with all the aspects analyzed in the
approval process. Only approved sup88
In 2014, we developed a system to
automate and increase the reliability
of the management of information
in the supplier approval process. This
system will be implemented in 2015.
[G4-11]
The company respects the employees’ rights to free association with
trade unions, and has affirmed this
in its Code of Conduct. We maintain
close relations and open dialogue
with the unions that represent the
employees in our industry sector. Collective negotiations always include
the presence of representatives of
these unions, and the results are
disclosed to our employees through
our internal communication vehicles.
Although not a common practice,
the company would not be opposed
to considering the participation of
employees in the negotiating rounds,
if it were requested by the union.
On the days of the union assembly
meetings to vote on the collective
agreements, the company provides
employees with transportation to
the location of the meeting, releasing
them from work early, if necessary.
In 2014, we did not receive any warnings or sanctions of any kind, with regard to the processes of association
and collective bargaining, from the
relevant supervisory bodies. Votorantim Cimentos does not have any
operation in which the employee’s
rights to exercise freedom of association may be at risk. [G4-HR4]
In Votorantim Cimentos, 100% of our
employees are covered by collective
bargaining agreements.
VOTORANTIM CIMENTOS
Business Overview
Relations with
government bodies
Our relations with government bodies, at all levels, are strictly technical
and concern strategic and/or business issues.
Votorantim Cimentos set up the
Advocacy Work Group, a multidisciplinary group of employees, to
identify and address issues that have
the potential to impact the business
environment and that require negotiations with government entities.
On a day-to-day basis, we monitor
the activities of parliamentary committees and projects being discussed
in the various legislative bodies that
have some connection to the company’s industry or business areas. We
also identify organizations and entities that bear some relation to the
company’s projects or initiatives.
In addition, we are in constant
contact with the state and municipal
governments of the regions where
we operate, and support the development of local communities.
We participate in forums at various
levels of government (ministries, departments and other public bodies)
to discuss and present demands or
proposals for regulations that have
some connection with our activities.
line with our standard practice the
handbook was updated prior to the
elections in 2014.
In addition we have a Corporate
Policy for Election Donations, which
establishes corporate guidelines for
the company’s donations in election campaigns. This policy can be
consulted on our website at:
(www.votorantim.com).
In the 2014 elections, we made
contributions amounting to R $
9.71 million. These donations were
made in accordance with current
legislation and company policies.
All donations are registered at the
Superior Electoral Court (TSE). This
information can be consulted at the
following link: http://inter01.tse.jus.
br/spceweb.consulta.receitasdespesas2014
Link: http://inter01.tse.jus.br/spceweb.consulta.receitasdespesas2014
Participation in Forums
and Associations G4-16
We participate in various forums and
entities in the cement industry, in
the various countries where we operate. We contribute to the discussion
of the paths to sustainability in the
industry.
Among the most important participations, are:
Conduct in elections
Our relations with candidates for
public office in elections are guided
by our Handbook for Conduct in
Electoral Processes.
The handbook is distributed to all the
company’s managers, and provides
information and recommendations
on Votorantim Cimentos’ corporate
conduct in electoral processes. In
89
Business Overview
ORGANIZATION
OBJECTIVE
Brazilian Portland Cement Association (ABCP)
Sector discussions on the environment, climate change
and energy.
The National Cement Industry Union (SNIC)
and energy.
Cement Sustainability Initiative (CSI)
The cement industry initiatives to accelerate progress
towards sustainable development at a global level.
Brazilian Speleological Society and
the Atlantic Forest Biosphere Reserve (SBE/RBMA)
Partnership to develop ecosystem conservation standards
in karst areas and the Atlantic Forest biome in Brazil.
World Business Council for Sustainable Development
(WBCSD)
Participation in a business initiative for sustainable
development at a global level.
Durham Region Roundtable on Climate Change
(DRRCC)
Initiatives on climate change in partnership with
government.
Portland Cement Association & Cement Association
of Canada
Debates and positioning in the cement sector on climate
change and general topics.
Ontario Stone, Sand & Gravel Association (OSSGA)
Debates and positioning on sustainability in the aggregate
sector, in Ontario.
Ready Mixed Concrete Association of Ontario
(RMCAO)
Debates and positioning on sustainability in the concrete
sector, in Ontario.
European Cement Research Academy (ECRA)
Strategy to reduce CO2 emissions and innovation
Brazilian Mining Institute (IBRAM)
Discussions and positioning on sustainability in the
mining sector.
Spanish Association of Cement Manufacters
(OFICEMEN)
and energy.
Andalusian Association of Cement Manufacters
(AFCA)
and energy.
Labour Foundation for Cement and environment
(CEMA)
Debates on cement and how to promote sustainable
development within the sector.
90
VOTORANTIM CIMENTOS
Business Overview
ORGANIZATION
OBJECTIVE
Andalusian Labour Foundation for Cement and
Environment (FLACEMA)
Debates on cement and how to promote sustainable
development within the sector.
Spanish National Association of Aggregate
Manufacturers (ANEFA)
Debates on aggregates to bring new ideas into the
mainstream, forming the basis for the sustainable
development of business and industry.
Spanish Aggreagate Federation (FDA)
Debates on aggregates to bring new ideas into the
mainstream, forming the basis for the sustainable
development of business and industry.
Professional Institute for Cement Manufacturers Morocco (APC)
and energy.
Turkish Cement Manufacturers’ Association (TCMA)
and energy.
Indian Cement Manufacturing Association (CMA)
and energy.
Indian Cement Sustainability Initative (CSI)
Similar to CSI, but with focus on India.
Corporate Communication
and Brand Image [G4-26]
We started working on a reputation
platform with initiatives to promote
closer relations with stakeholders
and to define rules for the use of the
Votorantim Cimentos institutional
brand, globally.
In the case of relations with stakeholders, we are restructuring our
media relations activities in Brazil,
in order to be closer to local and
regional opinion leaders, and ensure
greater responsiveness in discussions with them. We started to
approach global media companies
specialized in the construction
materials market in order to raise
the profile of Votorantim Cimentos
as one of the major global players in
the industry.
In the case of brand image, we initiated a corporate positioning project,
in order to translate our company
vision into an inspiring proposition. Our positioning will be launched in
Brazil in 2015, and globally in 2016. We
will direct all the communications on
the corporate brand to both internal
and external stakeholders. We are
still working on the development
of our brand architecture, with the
objective of defining one that best
reflects the philosophy of One Team,
One Company. We want to establish
guidelines to interrelate the corporate
brand, the brands of our subsidiaries
globally and the company’s product
brands. This architecture will begin to
be implemented in 2015, through the
many different communication channels that Votorantim Cimentos has
with its stakeholders.
In Brazil, we have defined the
reputation performance indicators
that will be measured annually from
2016. The next step will be to define
the reputation indicators in the
other countries where we operate.
The objective is to understand how
we are perceived by key stakeholder
groups, internal and external, and
based on these perceptions, define
action plans to promote the convergence of the perceived and desired
images for the organization.
91
92
VOTORANTIM CIMENTOS
Results of good
management
[G4-EC1, G4-2 and G4-17]
In 2014, we achieved
positive and consistent
results in our global
operations.
Results of good
management [G4-EC1]
Our geographical diversification,
wide range of products and services,
strict cost management, commercial and operational efficiency and
adequate pricing were some of the
factors that enabled us to generate
good global results in 2014.
The consolidated net income was
R $ 12,884 million, an increase of 6.1%
over 2013 , due to higher cement
prices in almost all of our regions,
and the positive effects of exchange
rate movements on the consolidated
results, partially offset by reduced
volumes in Europe, Asia and Africa.
EBITDA was R $ 3,493 million, a decrease of 0.6% compared to the previous year. This was impacted mainly by
the lower performance of operations
in North America and Brazil, partially
offset by the operations in Europe,
Asia and Africa and South America.
The consolidated net profit was
R$ 1,141 million, a decrease of 17.9%
compared to 2013, due mainly to the
premium paid for the repurchase
of bonds (R$ 175 million), increased
Brazilian interest rates (CDI) on loans
and financing (R$ 176 million) and
lower operating results (R$ 80 million). If we excluded the effect of the
premium on the bond repurchase,
in the amount of R $ 175 million, and
maintained the effective rate for the
period, net profit would have been
R$ 1,256 million in 2014, an increase of
10.1% compared to the previous year.
Notes:
a) The fixed costs of salaries and benefits in Brazil increased compared to the previous year, due to adjustments in the salary structure following the implementation
of the new governance structure and the new sales approach. b) There were also
cost increases in our overseas operations, principally: freight costs for VCNA’s operations due to contingencies used to meet market demand; rising production costs
in North America, mainly for energy, due to the harsh winter; and increased energy
costs in Tunisia due to price increases following the deregulation of the market by
the government. In addition, the consolidated expenses for 2014 were impacted by
non-recurring items of R$ 109 million, due primarily to inventory adjustments and
contingency provisions in Brazil.
93
Sales volumes – by product type
(million metric tons)
25.00
12.09
10.72
Cement (million metric tons)
Aggregates (million metric tons) Concrete (million m³)
Mortar (million metric tons)
8.02
4.28
4.16
4.33
1.73
5.36
2.37
0.05
Brazil
North
America
ADJUSTED EBITDA
(R$ thousands)
0.17
0.22 0.01
South
America
2012
2013
2014
2,775,051
2,709,435
2,676,763
South America
–
73,978
87,806
–
372,570
425,877
296,873
356,195
302,172
3,071,924
3,512,178
3,492,584
Brazil
North America
Consolidated
94
Europe, Asia
and Africa
0.66
VOTORANTIM CIMENTOS
Distribution of
value-added (DVA)
14%
Net Revenue by
product type (%)
3%
20%
6%
21%
26%
70%
40%
Value-added for employees
Value-added for government (taxes)
Remuneration of third-party capital
Remuneration of own equity
Cement
Concrete
Aggregates
Other
The DVA corresponds to the direct economic value generated and distributed by
the company, including revenues, operating costs, employee remuneration, donations and other community investments,
retained earnings and payments to capital
providers and governments. In 2014, the
company generated R$ 12.9 billion of net
revenues and R$ 8.3 billion of value added.
Net Revenue by product type
(R$ thousands)
2013
2014
Cement
8,329,674
9,000,085
Concrete
2,280,468
2,651,101
754,835
434,521
777,311
797,895
12,142,288
12,883,602
Aggregates
Other
Total
95
3.3%
The increase in our net
revenues in 2014.
Regional Results
How we progressed in Brazil
Cement sales volumes totaled 25 million metric tons, a reduction of 404
thousand metric tons (1.6%) compared to 2013.
The sales volumes for aggregates
and concrete decreased by 19.2% and
11.9%, respectively, compared to the
previous year. This was mainly due to
the downturn in the real-estate market in large urban centers such as São
Paulo, Rio de Janeiro and Curitiba.
Despite the slight decline in cement
volumes, net revenues increased by
3.3%, due to the increase in average
prices of 8%.
Adjusted EBITDA from operations
totaled R $ 2,677 million, down 1.2%.
The adjusted EBITDA margin was
31.4%, representing a decline of 1.4
percentage points. The reduction in
EBITDA margin was due primarily to
the increase of fixed costs in Brazil,
96
due to adjustments in the salary
structure following the implementation of the new governance structure
and the new sales approach, and
extraordinary items amounting to
R$ 109 million, primarily for inventory adjustments and provisions for
contingencies in the last quarter.
Excluding these effects, the adjusted
EBITDA would have been 2.8% higher
than in 2013.
North America
Cement sales volumes totaled 4.2
million metric tons, an increase of
7.7% compared to 2013. This growth
reflected the recovery of the United
States economy. In the last quarter,
the market was boosted by increased
government spending on paving in
the United States and also higher
demand from the construction sector
in Canada, mainly for residential and
commercial condominiums. The total
volume for the year, could have been
higher if, in the first quarter, the winter had not been so long and severe,
especially in the Great Lakes region.
VOTORANTIM CIMENTOS
The volume of aggregates sales
decreased by 0.6%, which is equivalent to 65 thousand metric tons. This
decrease was also due to lower sales
in the first quarter, because of the
severe weather conditions.
The volume of concrete sales
totaled 4.3 million cubic meters, an
increase of 8.9%. This increase was
due to the economic recovery of
our markets in the Great Lakes and
Florida regions.
Net revenues totaled R$ 2,290
million, 14.4% higher than in 2013.
The increase in revenues was due to
higher sales volumes, the improved
performance of the United States
economy, and the net exchange rate
effects on consolidated results, mainly the revaluation of the US Dollar
against the Brazilian Real by 8.4%.
Adjusted EBITDA was R$ 302 million,
a decrease of 15.2%. The adjusted
EBITDA margin was 13.2%, a reduction of 4.6 percentage points. The
change in EBITDA can be explained
by three main factors: increased
energy costs due to production
interruptions/restarts (higher fuel
consumption) due to the severe
winter; increase in freight costs,
due to supply contingencies in
certain markets; increased costs
of third party materials, due to production shutdowns provoked by
the severe winter. These negative
effects were partially offset by increased sales volumes and a favorable net foreign exchange variation
in the consolidated results.
Cement sales volumes totaled 8.0
million metric tons, a reduction
of 164 thousand metric tons (2%)
compared to 2013.
The decrease in sales volumes
occurred primarily in Tunisia and
Morocco. The total volume in Tunisia decreased by 16%, due to higher
local competitiveness and the
deregulation of energy prices by
the government, offset by strong
export volumes which grew by
86%. In Morocco, the sales volume
of sales fell 8% in the year, due to
reduced government investments
in infrastructure. The Spanish
domestic market also contracted,
but the impact on volume was
compensated by the increase in
exports.
The sales volumes in Turkey increased by 3%, driven by favorable
market conditions. In India, the
volume of sales increased by 11.8%
due to sales and marketing initiatives and more efficient logistics,
as we focused on the regions closer
to our plants.
The aggregates business increased sales by 4.6%, driven by
stronger demand in the Moroccan
market. The concrete business,
however, registered a reduction
in sales volumes of 11.3%, mainly
due to the Spanish and Moroccan
markets.
97
Our net revenues in the region were
R $ 1,716 million, an increase of 6.5%
compared to 2013, as a result of
improved sales prices in almost all
countries (except in Spain), which
offset the lower sales volumes in
Tunisia and Morocco.
In 2014, the consolidated EBITDA
for VCEAA totaled R$ 426 million, an
increase of 14.3%. The region’s EBITDA
margin was 24.8%, 1.7 percentage
points higher than in 2013. This
increase was due mainly to higher
sales prices in almost all regions
(except Spain) and improved cost
efficiency. These two factors partially
compensated the slight decrease in
sales volumes and the increased cost
of energy in Tunisia, due to market
deregulation.
98
South America
The volume of cement sales was 656
thousand metric tons, an increase of
46 thousand metric tons (7.6%) compared to 2013. Net revenues totaled
R$ 340 million, an increase of 43%.
The adjusted EBITDA from operations was R $ 88 million, representing
an increase of 30% compared to 2013.
The adjusted EBITDA margin was
25.8%, a reduction of 2.6 percentage
points.
Debt Reduction
In 2014, Votorantim Cimentos issued
bonds in the international fixed
income markets, for the first time
without the corporate guarantee
of Votorantim Industrial (VID). We
VOTORANTIM CIMENTOS
In 2014, we received
investment grade ratings
from the three main risk
rating agencies: Standard
& Poor’s (BBB, stable
outlook), Moody’s (Baa3,
stable outlook) and Fitch
Ratings (BBB, stable
outlook).
issued EUR 650 million of bonds in
the European markets. The proceeds
of this issue were used to repurchase
EUR 445 million of the company’s
outstanding bonds in the market,
significantly reducing costs while
extending the term of the debt.
We repurchased the existing bonds
maturing in 2017, replacing them
with new bonds maturing in 2021.
The fixed interest rate, in Euros, on
the new bonds of 3.25% p.a. was
significantly lower than that of the
repurchased bonds of 5.25% p.a.
In 2014, we renegotiated a number
of other financial transactions, in
both the domestic and international
markets, to exclude the Votorantim Industrial guarantees. The new
transactions were based on the
company’s own long-term investment grade credit ratings from the
three main rating agencies. We
strengthened our financial discipline
within the new corporate governance structure. We started 2014
with 88% of our debt guaranteed
by Votorantim Industrial (and/or its
subsidiaries) and reduced this level
to about 43% by year-end.
The company’s management of
liquidity and leverage seeks to maintain parameters that are comparable
to those necessary to obtain a BBB
(or equivalent) investment grade
rating, on a global scale, and with a
stable outlook, from the main rating
agencies.
The objective of our capital structure
management is to ensure the company’s long-term business continuity.
We aim to achieve an ideal capital
structure that optimizes costs, thus
providing greater returns to shareholders.
Financial Policies
We implemented global financial
policies during the year, in order to
have a single standard for assessing
liquidity, exposure to counter-parties
and risk management.
The Finance Committee, which is
responsible for advising the Board
and the Global Executive Team on
the company’s liquidity strategy,
held monthly meetings, and, as a
result, was able to improve financial governance which had, previously, been the responsibility of
Votorantim Industrial.
In this respect, we ended the year
with a total gross debt of R$ 14.4
billion and a financial leverage,
measured by Net Debt/EBITDA, of 3.4
times. Our cash position at year-end
was R$ 2,526 million, sufficient to
cover our debt service for the next
3.5 years. In December 2014, the average term of our outstanding debt
was 9.2 years.
99
Future trends and
prospects
[G4-2]
Prepared to grow
We know that we will have to face
two more difficult years, especially
in Brazil, where a large proportion
of Votorantim Cimentos’ business is
concentrated.
Assuming a context of low GDP
growth, the prospects for our markets are to maintain sales volumes.
We expect to see cost pressures,
especially for important inputs such
as electrical energy, fossil fuels and
Even in the face of a
challenging economic
situation, our objective
is to continue to grow.
water. Even in this weak demand
situation we anticipate that new
competitors will enter the market,
impacting our business, especially in
the South, Southeast and Northeast
regions.
Despite this, our goal is to continue
to grow. We have the advantages
of a broad and diverse geographical
reach, a wide range of products and
services, a new customer service approach and an aggressive investment
program.
Several factors give us confidence
that we can achieve our goals. We
are well positioned in Brazil, in those
regions that will continue to grow,
especially the Northeast, North and
Center-West. We will maintain the
pace of our investments in Brazil and
overseas.
The prospects are also good in
several countries where our Europe,
Asia and Africa subsidiary operates.
In addition to building a new plant in
Turkey, we are looking at an expansion project in Morocco and a power
generation project to supply our
operations in Tunisia. We remain on
the look-out for good opportunities
for acquisitions outside of Brazil.
As a company that takes a long-term
view, we have invested and will con-
100
tinue to invest for the medium and
the long terms. We seek to anticipate
trends and position the company to
capitalize on future growth cycles.
In 2015, we will review our long-term
strategy and we intend to announce
the next steps in our global investment plan.
Given the likelihood of a challenging short-term situation, we will
strengthen our cost control and our
focus on our four strategic drivers: customer focus, empowered
employees, operational excellence,
and sustainable practices. One of our
priorities is to work hard to improve
safety, ensuring a healthy workplace
environment, with zero accidents.
The new governance structure has
had very positive impacts on the
company, and its effects will continue to be felt for some time. The
company still intends to open its
capital. However the timing is conditioned on the market conditions
being appropriate.
In short, Votorantim Cimentos will
continue to make every effort to be
recognized by the market and society
as a strong and durable company
that has quality products, exemplary
management and sustainable practices, and one which aspires to create
a better world for future generations.
VOTORANTIM CIMENTOS
101
Performance
Economic Performance
CSI
2012
2013
2014
12,190,637
15,160,055
16,020,805
-5,009,488
-7,309,195
-7,743,472
7,181,149
7,850,860
8,277,333
6,636,842
7,077,767
7,471,834
135,911
1,471,613
792,987
Total value added to be distributed
6,772,753
8,549,380
8,264,821
Distribution of value added
6,772,753
8,549,380
8,264,821
Cement
6,221,178
8,329,674
9,000,085
Concrete
2,099,121
2,280,468
2,651,101
Aggregates
378,932
754,835
434,521
706,192
777,311
797,859
1,106,852
1,479,595
1,654,211
Value added for government (taxes)
(R$ thousands)
2,709,736
3,444,661
3,290,326
Remuneration of third-party capital
(R$ thousands)
1,315,682
2,236,289
2,179,492
1,640,483
1,388,835
1,140,792
28.12
38.06
37.83
26.69
31.17
28.34
8.76
11.76
11.20
1.72
1.83
1.79
Economic value generated and distributed
(R$ thousands)
GRI
G4-EC1
Gross sales revenues of products and services,
other income and provision for bad debts
Inputs acquired from third parties
Gross value added
Net value added produced
Total value added received in transfers
Net revenues by product (R$ thousands)
G4-EC1
Creating value for Votorantim and key stakeholders
Value added for employees (R$ thousands)
Remuneration of own equity (R$ thousands)
Sales of cement (million metric tons)
Sales of aggregates (million metric tons)
Sales of concrete (million m³)
Sales of complementary products
(million metric tons)
102
G4-EC1
VOTORANTIM CIMENTOS
Performance
CSI
GRI
2012
2013
2014
Total amount spent with suppliers (R$)
-
4,482,644,388
3,761,621,473
Proportion of spending with local suppliers
-
55%
50%
Suppliers
Proportion of spending with local suppliers at
significant operating locations*
G4-EC9
Contracting of suppliers *
% of new suppliers that were screened using
environmental criteria
G4-EN32
-
100%
92%
human rights criteria
G4-HR10
-
89%
93%
labor practices criteria
G4-LA14
-
89%
93%
G4-SO6
-
0
9,710,000
* Results refer to VCBR operations
Government relations
Political Contributions (in R$) *
*The contributions were estimated in accordance with the limits set out in relevant legislation and the Corporate Policy for Election Donations registered at the 6th Office of Deeds and Documents. Available at: http://www.portalvotorantim.com.br/sites/vpar/SiteCollectionDocuments/Politicas_Corporativas/controladoria/Manual_Conduta_Processos_Eleitorais_2014_Votorantim.pdf
Consumer relations
Net Promoter Score (NPS) survey results
G4-PR5
44%
*Results refer to NPS survey in Brazil, for the retail self-construction path for cement, mortar and lime.
Total number of employees who received anti-corruption training
Total number of employees who received
anti-corruption training
G4-SO4
Director/President
34
32
45
60
2
74
-
98
103
Performance
CSI
GRI
2012
2013
2014
Trainee
-
1
Operator
-
13
Intern
-
8
Total*
81
286
Other regions
199
Overall Total
81
485
* In 2013, 81 employees received anti-corruption training in Brazil and North America. In 2014, 485 employees received training in the VCBR,
VCNA, VCSA and VCEAA regions.
Total number of legal actions for anti-competitive behavior, trust and monopoly practices
and their outcomes G4-SO7
Total number of legal actions
Value of legal actions (R$)
2
0
0
5600046920
-
-
Number of processes and monetary value of significant fines for non-compliance with laws
or regulations G4-SO8
No. tax legal actions
No. of labor and social security legal actions
No. of civil legal actions
313
1,220
325
Value of tax legal actions (R$)
420,390,746
Value of labor and social security legal
actions (R$)
269,902,515
Value of civil legal actions (R$)
355,302,668
No. discrimination incidents received by the Ombudsman G4-HR3
Race
4
Color
0
Age Group
1
Sex
3
Religion
2
Political Opinion
0
Nationality
0
Social Class
2
Other relevant forms of discrimination
involving internal and/or external
stakeholders in operations.
0
Harassment and Abuse of Power
0
104
VOTORANTIM CIMENTOS
Performance
CSI
GRI
Other cases (discrimination)
2012
2013
2014
1
Analyzed and considered unfounded
11
Under analysis
1
Considered valid*
1
*Following the confirmation of the discrimination incident the employee was dismissed
Ombudsman
Number of reports registered
G4-EN34
16
Reports related to labor issues
G4-LA16
371
Reports related to impacts on society
G4-SO11
400
G4-EN34
16
G4-LA16
371
G4-SO11
400
G4-EN34
0
G4-LA16
107
G4-SO11
115
Reports related to environmental impacts
Reports processed
Reports resolved
Note: G4-HR12 No reports on incidents of child, forced or compulsory labor were received in 2014. Other remaining topics related to human
rights are included in the G4-HR3 indicator.
105
Performance
Environmental Performance
CSI
GRI
2012
2013
2014
30
32
33
Aggregates
15
16
13
Concrete
92
92
90
31,690,068
79,070,976
67,804,164
27,787,572
51,242,110
41,629,016
Waste disposal, emissions treatment and
remediation costs (R$)
31,826,306
48,132,668
37,875,439
Costs of environmental prevention and
management (R$) 24,880,414
64,692,581
62,082,463
2,770,920
17,487,837
9,475,277
2,012
2,013
2014*
2
2
-
16
27
17
5
4
-
3,565,945
6,953,481
447,049
26.7
28.5
28.1
26.4
28.1
27.7
644.6
657.2
653.3
637.1
649.7
642.5
Number of plants included in the evaluation
Cement
Environmental Investments and Compliance
G4-EN31
Total environmental CAPEX and OPEX, by type.
Environmental investments (CAPEX) (R$)
Environmental expenses (OPEX) (R$)
Other environmental costs (R$)
G4-EN29
Monetary value of fines
No. of legal actions filed against the company
in the year
No. of administrative sanctions received in
the year
No. of TAC's or TC's received in the year
Total value of legal actions (R$)
* Results 2014 refer only to the fines received by VCBR
Reduction of CO2 emissions
Cement
Absolute gross CO2 emissions (million
metric tons)
x
Absolute net CO2 emissions (million
metric tons)
x
Specific gross CO2 emissions/(kg CO2 /metric
ton cementitious materials)
x
Specific net CO2 emissions/(kg CO2 /metric
ton cementitious materials)
x
106
G4-EN15
G4-EN18
VOTORANTIM CIMENTOS
Performance
CSI
GRI
2012
2013
2014
x
G4-EN19
16.5
14.8
15.8
Absolute gross emissions of CO2 (million
metric tons)
G4-EN15
0.017
0.019
0.013
Specific net emissions of CO2 (kg CO2/metric
ton of product)
G4-EN18
% Reduction in CO2 emissions - base 1990
(kg CO2 /metric ton cementitious materials)
Aggregates
1.99
Concrete
Absolute gross emissions of CO2 (million
metric tons)
G4-EN15
Specific gross emissions of CO2 (kg CO2/m3)
G4-EN18
0.058
0.052
0.024
0.0022
Indirect emissions of CO2
Indirect emissions of CO2 from energy
purchases (million metric tons)
Cement
G4-EN16
1.13
1.28
1.37
G4-EN17
410,172
432,112
427,969
Coal
13%
12%
19%
Petroleum coke
75%
78%
72%
Heavy fuel oil
0.52%
0.39%
0.17%
Diesel oil
0.29%
0.37%
0.35%
Other fuels
0.00%
0.01%
0.01%
Natural gas
0.62%
1.00%
0.73%
Gasoline
0.02%
0.01%
0.01%
Shale and lignite
2.31%
0.84%
0.09%
Alternative fossil fuels
3.4%
3.3%
4.9%
3.8%
3.3%
2.7%
7.2%
6.6%
7.6%
Other indirect greenhouse gas (GHG)
emissions - Scope 3 (tCO2eq)
Transportation of inputs and final products*
*Includes Scope 3 emissions for the cement,
concrete and aggregates units.
Energy
Thermal energy mix for clinker production (%)
Alternative fuels from biomass
Thermal substitution rate (% Thermal energy
derived from alternative fuels)
G4-EN3
x
107
Performance
CSI
2012
2013
2014
3,478
3,542
3,513
2.5%
1.8%
1.6%
26.1%
31.5%
26.8%
3.7%
2.2%
9.2%
0.001%
0.0%
0.0%
Contaminated sawdust
0.0%
0.0%
7.2%
Mixed industrial waste
13.0%
14.6%
15.4%
6.7%
5.8%
10.3%
0.04%
0.0%
0.0%
2.1%
1.7%
2.5%
32.0%
3.1%
1.1%
13.9%
39.3%
25.9%
74.2%
76.1%
74.7%
Thermal efficiency (MJ/metric ton of clinker)
GRI
x
Types of waste used as alternative fuels (%)
Oil
Tires
Plastics
Solvents
Other fossil fuels/mixed waste
Dry sewage sludge
Dry sawdust
Agricultural waste, organic waste, diapers
and coal
Other bio-masses
Clinker factor (average % of clinker in cement)
x
G4-EN5
Fuel consumption
Cement (MJ/metric ton of cementitious
product)
2.66
Aggregates (MJ/metric ton of product)
0.03
Concrete (MJ/metric ton of product)
0.00003
G4-EN5
Total fuel consumption (TJ/year)
Cement
114,496
Aggregates
166
Concrete
297
Specific consumption of electrical energy (kWh/metric ton)
Cement (kWh/metric ton of cementitious
product)
x
113.73
Aggregates kWh/ metric ton
2.70
Concrete (kWh/m )
0.0019
3
Total consumption of electrical energy (million kWh/year)
Cement
x
4,462
Concrete
Cement
108
4,658
28.881
Aggregates
Energy consumption inside the organization (GJ)
4,598
8.01
G4-EN3
117,327,217
VOTORANTIM CIMENTOS
Performance
CSI
GRI
2012
2013
2014
Aggregates
270,324
Concrete
296,911
Energy consumption outside the organization (GJ)
G4-EN4
Transport and distribution
5,544,162
Environmental impacts G4-EN30
Quantitative data for logistics:
Energy consumption (GJ)
GHG emissions (tons CO2 eq )
9,096,332
9,422,545
5,595,184
482,003
499,299
427,780
41,415,553
55,689,684
54,912,189
30,525,691
34,167,696
58,293,440
71,941,244
89,857,380
113,205,629
51
52
48
* Transportation is the main source of greenhouse gas emissions from burning fossil fuels. .
Materials used (metric tons) G4 - EN1
Cement
Other business
Total non-renewable materials
Other Air Emissions
NOx
G4-EN21
Number of furnaces reported
Total emissions (metric tons/year)
x
47,951
70,596
62,128
Specific average concentration (g/metric ton
clinker)
x
1,599
2,249
1,977
% Reduction in NOx compared to the previous year
12.1%
SO2
G4-EN21
51
52
48
x
23,759
29,921
21,461
clinker)
x
792
953
683
% Reduction in SO2 compared to the previous year
28.4%
PM
G4-EN21
51
52
48
x
4,301
3,567
3,385
clinker)
x
143
114
108
% Reduction in PM compared to the previous year
5.2%
109
Performance
CSI
GRI
2012
2013
2014
G4-EN21
51
52
48
Mercury
Total emissions (kg/year)
x
341
538
272
Specific average concentration (mg/metric
ton clinker)
x
11.4
17.1
8.6
% Reduction in mercury compared to the
previous year
49.6%
VOCs
G4-EN21
51
52
48
x
339
590
706
clinker)
x
11.3
18.8
22.5
% Reduction in VOCs compared to the
previous year
-19.5%
Dioxins/Furans
G4-EN21
51
52
48
Total emissions (mg/year)
x
789
596
431
Specific average concentration (ng/metric ton
clinker)
x
26.3
19.0
13.7
% Reduction in dioxins/furans compared to
the previous year
28%
HM1 (Cadmium + Thallium)
G4-EN21
51
52
48
x
566
717
636
ton clinker)
x
18.9
22.8
20.2
% Reduction in HM1 compared to the previous year
11%
HM2 (Antimony + Arsenic + Lead + Chromium + Cobalt + Copper + Manganese + Nickel + Vanadium)
G4-EN21
51
52
48
x
23,607
16,098
14,716
ton clinker)
x
787.0
512.0
468.2
% Reduction in HM2 compared to the previous year
9%
Monitoring Data
Total Monitoring Coverage Rate (KP1) Total Coverage Rate *1
x
Continuous Monitoring Coverage Rate (KP2) PM, NOx and SO2
x
G4-EN21
65%
65%
57%
80%
84%
88%
*Percentage of clinker produced in kilns covered by the monitoring system for Particulate Material, NOx, SO2, VOC/THC, heavy metals
(Hg, Cd, Tl, Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V) and PCDD/F
110
VOTORANTIM CIMENTOS
Performance
CSI
GRI
2012
2013
2014
81
119
120
47
62
70
2
4
4
49
78
78
Biodiversity and resource conservation
Total number of mines
Cement and Aggregates
Number of areas of high biodiversity value*
G4-EN11
x
Number of areas of high biodiversity value
with biodiversity management plans (BMP)
in place*
G4-MM2
x
% of mines in areas of high biodiversity value
with recovery plans for degraded areas*
G4-MM10
x
*Indicator includes information for VCBR (Cement and Aggregate), VCNA (Cement and Aggregate) and VCEAA (Cement)
Management and Recycling
Waste generated and disposed (metric tons)
Cement
Waste production
G4-EN23
Total non-hazardous waste (metric tons)
Non-hazardous waste produced internally
and co-processed
1,331
Non-hazardous waste sent to industrial
landfill
343,456
Non-hazardous waste sent for recovery
1,368
Non-hazardous waste sent for reuse/recycling
1,148,268
Non-hazardous waste sent for recovery
845
Total non-hazardous waste disposed of
1,495,269
Total hazardous waste (metric tons)
Hazardous waste produced internally and
co-processed
54,493
Hazardous waste sent to industrial landfill
4,821
Hazardous waste sent for recovery
141,145
Hazardous waste sent for reuse/recycling
37,406
Total hazardous waste disposed of
237,865
* Only VCEAA and VCBR were considered in this indicator. VCNA data will be considered in the next year.
111
Performance
Social Performance
CSI
2012
2013
2014
9,759
9,920
9,994
South America
-
306
307
North America
3,128
3,552
3,293
-
2,978
2,185
25%
17.5%
-
4.5%
3%
3%
22%
19%
9%
7%
14%
12%
2%
3%
21%
16.85%
Employees by region
GRI
G4-10
Brazil
Employee turnover (%) G4-LA1
By region
Brazil
Other countries
By gender
G4-LA1
Women
Men
By Age Group
G4-LA1
Less than 30 years old
Between 30 and 50 years old
More than 50 years old
Rate of new hires G4-LA1
By region
Brazil
Other countries
By gender
3.15%
G4-LA1
Women
Men
By Age Group
Less than 30 years old
Between 30 and 50 years old
More than 50 years old
112
2.20%
2.60%
19.00%
17.40%
10%
9%
11%
10%
1%
1%
G4-LA1
VOTORANTIM CIMENTOS
Performance
CSI
GRI
2012
2013
2014
0.81%
1.38%
10.90%
9.15%
11.71%
10.53%
% Management and coordinator positions
0.82%
1.36%
% Operating Positions
9.03%
16.57%
% Employees over 50 years old
9.88%
17.93%
4
5
73
35
49
54
61
75
165
144
72
39
8
27
68
35
65
61
129
84
Trainee
185
100
Operator
54
21
Average hours of training
(men and women)
64
38
% Female workers G4-LA12
% Management and supervisory positions
% Operating Positions
% Female workers
% Employees over 50 years old G4-LA12
Training
Calculation of the average number of hours of training per employee G4-LA9
Men
Director/President
Trainee
Operator
Women
Director/President
113
Performance
CSI
GRI
2012
2013
2014
Total number of employees covered by collective bargaining agreements G4-11
Employees covered by collective bargaining
agreements
12,210
Total employees
15,779
Percentage of employees covered
77%
Local hiring and proportion of senior management hired from the local community
in important operating units* G4-EC6
Percentage of senior management hired from
local communities
95%
Percentage of employees from local
communities
99.86%
*Includes senior managers, general managers, directors and the president.
Occupational Health and Safety
Number of fatalities - cement, aggregates and concrete* G4-LA6
Directly employed (on site)
x
2
1
2
Employees (off site)
x
0
1
1
Indirect employees (on-site)
x
2
3
1
Contract Staff (off-site)
x
6
6
0
Other
x
5
8
7
Employees
x
1.06
1.28
1.14
Contract Staff
x
0.47
0.90
0.77
2.19
1.09
0.94
* Includes on-site and off-site
LTI Frequency Rate G4-LA6
Total - Employees + Contract Staff
Days lost due to accidents (calendar days) G4-LA6
Employees
x
2,927
3,195
3,108
Contract Staff
x
515
1,548
543
Note: In 2014, the fatalities were reclassified due to a revised interpretation of the CSI criteria.
114
VOTORANTIM CIMENTOS
Performance
CSI
GRI
2012
2013
2014
LOCAL COMMUNITY ENGAGEMENT PROGRAMS G4-SO1
Distribution of social investment (%)
ReDes ("Networks") Program
47
Public Administration
9
Training for work
7
Development projects
6
Education
5
Culture
5
Votorantim Program for Education (PVE)
5
Sport
4
The rights of children and young people
4
Community engagement
2
Qualification of Social organisations
2
Group of Community participation
4
115
GRI Content Index for ‘In
accordance’ - Core
[G4-32]
General Standard Disclosures
Page/response
External assurance
G4-1 Declaration by the most senior decision-maker of
the organization (For example: President, Chairman
of the Board of Directors or equivalent senior
position) about the relevance of sustainability to the
organization and its sustainability strategy
Page 8
No, page 118.
G4-2 Description of key impacts, risks and
opportunities: focus on the organization’s main
impacts on sustainability and its effects for
stakeholders.
Pages 8, 25, 35, 93
and 100
No, page 118.
Page 12
No, page 118.
Strategy and Analysis
Organizational profile
G4-3 Name of organization
G4-4 Principal brands, products and services
Pages 12 and 16
No, page 118.
G4-5 Location of the organization’s headquarters
Page 12
No, page 118.
G4-6 Number of countries where the organization
operates, and the names of countries where its main
operations are located or which are specifically relevant
to the sustainability topics covered in the report
Page 12
No, page 118.
G4-7 Nature of ownership and legal form of
organization
Page 12
No, page 118.
G4-8 Markets in which the organization operates (with
geographic breakdown, sectors covered and types of
clients and beneficiaries)
Pages 12, 16 and 35
No, page 118.
G4-9 Size of the organization
Page 12
No, page 118.
G4-10 Total number of employees UNGC
Pages 75, 77 and 112
No, page 118.
G4-11 Percentage of total employees covered by
collective bargaining agreements UNGC
Pages 88 and 114
No, page 118.
G4-12 Description of the organization’s supply chain
Page 85
No, page 118.
G4-13 Significant changes which occurred during the
reporting period regarding size, structure, ownership
and supply chain
Pages 8, 38 and 85
No, page 118.
G4-14 If and how the organization adopts the
precautionary approach or principle
Page 49
No, page 118.
G4-15 List of charters, principles or other initiatives of
economic, environmental and social nature that the
organization subscribes to or endorses
Page 20
No, page 118.
116
VOTORANTIM CIMENTOS
GRI List of Contents
Page/response
External assurance
G4-16 List of participations in associations (for example:
industry associations) and national or international
advocacy organizations
Pages 12 and 89
No, page 118.
G4-17 A list of all entities included in the organization’s
consolidated financial statements or equivalent
documents
Pages 4, 12 and 93
No, page 118.
G4-18 Explanation of the process adopted used to
define the report content and Aspect Boundaries
Page 150
No, page 118.
G4-19 List of all the material Aspects identified in the
process to define report content
Page 30
No, page 118.
G4-20 For each material, Aspect report the Aspect
Boundary within the organization
Pages 30 and 145
No, page 118.
G4-21 For each material, Aspect report the Aspect
Boundary outside the organization
Pages 30 and 145
No, page 118.
G4-22 Effect of any re-statements of information
provided in earlier reports and the reasons for such
reformulations
Não há pontos a serem
salientados.
No, page 118.
G4-23 Significant changes to the periods covered by
previous reports in Scope and Aspect Boundaries
Pages 4, 30 and 150
No, page 118.
G4-24 List of stakeholder groups engaged by the
organization
Pages 30 and 35
Yes, page 151.
G4-25 Basis used for identification and selection of
stakeholders with whom to engage
Page 43
Yes, page 151.
G4-26 Approach adopted by the organization to
engage with stakeholders including the frequency of
engagement, broken down by type and group, with
an indication of any type of engagement specifically
carried out as part of the report preparation process
Pages 35 and 91
Yes, page 151.
G4-27 Key topics and concerns raised during
engagement with stakeholders and the measures
adopted by the organization to address these topics
and concerns, including in the process of reporting
them. Report which of the stakeholder groups raised
each of the issues and concerns mentioned
Page 35
Yes, page 151.
G4-28 Reporting period (for example: fiscal or calendar
year) for information provided
Page 150
Yes, page 151.
G4-29 Date of the most recent previous report (if any)
Page 150
Yes, page 151.
Identified Material Aspects and Boundaries
Stakeholder Engagement
Report profile
G4-30 Reporting cycle (annual, biennial, etc.)
Page 150
No
G4-31 Contact point for questions about the report or
its contents
Pages 4 and 150
No
117
Page/response
External assurance
G4-32 Report the “in agreement” option chosen by the
organization
Page 150
No, page 118.
Pages 150
No, page 118.
G4-34 Governance structure of the organization,
including the committees of the highest governance
body. Identify all committees responsible for advising
the board in making decisions that have economic,
environmental and social impacts
Page 38
No, page 118.
G4-35 Process used for delegating authority on
economic, environmental and social issues by the
highest governance body to senior executives and
other employees
The Board of Directors is
responsible for defining
the company’s long-term
macro strategies, in terms
of economic, environmental
and social aspects. The Board
approves all appointments of
Directors and above, as well as
the short, middle and long-term
targets for these executives in
relation to the above aspects.
No, page 118.
G4-36 Report whether the organization has designated
one or more positions and executive level roles as
responsible for the economic, environmental and social
issues and whether those responsible report directly to
the highest governance body
Page 38
No, page 118.
G4-37 Consultation processes used between
stakeholders and the highest governance body in
regard to economic, environmental and social topics.
If the consultation is delegated to other structures,
organs or persons, indicate to whom any existing
feedback processes to the highest governance body
Page 30
No, page 118.
G4-38 Composition of the highest governance body and
its committees
Page 38
No, page 118.
Governance
G4-33 Policy and current practice adopted by the
organization to submit the report to external
verification
118
The indicators assured were
determined by considering
the level of assurance, the
materiality for Votorantim
Cimentos and PwC’s internal
studies on materiality in
specific sectors. A sampling
procedure was used as the
basis for defining the indicators
to be audited, therefore some
indicators were not included in
its scope.
The assurance was carried out
in full accordance with the
NBCTO 3000 standard, which
is the basis for PwC’s limited.
assurance.process.
VOTORANTIM CIMENTOS
Page/response
External assurance
G4-39 If the Chair of the highest governance body is
also an executive officer (and, if so, his/her function in
the organization’s management and the reasons for
this accumulation).
Page 38
No, page 118.
G4-40 Selection and appointment process for the
highest governance body and its committees, as well
as the criteria used to select and appoint the members
of the highest governance body
Page 38
No, page 118.
G4-41Processes used for the highest governance body
to ensure the prevention and management of conflicts
of interest. Report whether conflicts of interest are
disclosed to stakeholders
Pages 38 and 47
No, page 118.
G4-42 Roles of the highest governance body and the
senior executives in the development, approval and
updating of purpose, mission statement, vision and
values, and the definition of strategies, policies and
goals related to economic, environmental and social
impacts of the organization
The company’s senior managers
may propose, at any time,
improvements to the company’s
managemnt approach, which
must be approved by the Board.
No, page 118.
G4-43 Measures taken to develop and enhance
the knowledge of the highest governance body on
economic, environmental and social topics
In addition to undergoing
specific training courses,
Board members receive
regular analytical reports
from the relevant company’s
departments, to assist them in
their decision-making.
No, page 118.
G4-44 Assessment procedures of the highest
governance body’s performance with regard to the
governance of economic, environmental and social
topics. Report whether this assessment is independent
or not and how often it is performed. Report whether
this evaluation is a self-assessment
The Board carries out a selfevaluation at each meeting.
No, page 118.
G4-45 Role of the highest governance body in the
identification and management of impacts, risks and
opportunities derived from economic, environmental
and social issues. Mention the role of the highest
governance body in the implementation of due
diligence processes
Page 38
No, page 118.
G4-46 Role of the highest governance body in
analyzing the effectiveness of the organization’s risk
management processes for economic, environmental
and social topics
Risk management is a
permanent item on the Board’s
agenda both in terms of
analyzing existing processes and
evaluating new investments.
No, page 118.
G4-47 The frequency of the highest governance body’s
review of the impacts, risks and opportunities derived
from economic, environmental and social issues
Page 38
No, page 118.
119
Page/response
External assurance
G4-48 The highest committee or position that formally
reviews and approves the organization’s sustainability
report and ensures that all material Aspects are
addressed.
Page 38
No, page 118.
G4-49 Process used to communicate critical concerns
to the highest governance body
Page 38
No, page 118.
G4-50 Nature and total number of critical concerns
communicated to the highest governance body and
the mechanism(s) adopted to address and resolve them
The Board addresses all critical
issues related to the company’s
strategy, expansion plans and
business activities.
No, page 118.
G4-51 Remuneration policies for the highest
governance body and senior management
We do not disclose this type of
information since, due to its
strategic nature, it is only for
internal discussions.
No, page 118.
G4-52 Process adopted for determining the
remuneration. Report whether compensation
consultants are involved in the determination
of remuneration and if they are independent of
management. Report any other relations between the
compensation consultants and the organization
No, page 118.
G4-53 Report how opinions of stakeholders are sought
and taken into account in relation to remuneration,
including the results of votes on remuneration policies
and proposals, if applicable
No, page 118.
G4-54 Ratio of the total annual remuneration of the
highest paid individual in the organization in each
country where the organization has significant
operations and the median annual total compensation
of all employees (excluding the highest paid individual)
in the same country.
No, page 118.
G4-55 Ratio of the percentage increase in the annual
total compensation of the highest paid individual in the
organization in each country where the organization
has significant operations and the median percentage
increase in the annual total compensation of all
employees (excluding the highest paid individual) in
the same country.
No, page 118.
G4-56 Organization’s values, principles, standards and
norms of behavior, such as codes of conduct and ethics
Pages 28 and 37
No, page 118.
G4-57 Internal and external mechanisms adopted by
the organization to seek guidance on ethical and lawful
behavior, such as help or advice lines (for example:
ombudsman)
Pages 12 and 28
No, page 118.
Ethics and integrity
120
VOTORANTIM CIMENTOS
Page/response
External assurance
G4-58 Internal and external mechanisms adopted by
the organization to communicate concerns about
unethical or unlawful behavior and issues related to
organizational integrity, such as escalation through
line management, whistle-blowing mechanisms or
hotlines.
Pages 28
No, page 118.
Material
Aspects
DMAs and
indicators
Page/response
Omission
External
assurance
SPECIFIC STANDARD DISCLOSURES
Economic category
Economic
performance
UNGC
G4-DMA
Management
approach
Votorantim Cimentos is a privately-held
company that adopts the accounting and
governance practices of listed companies.
This includes having a Board which gives
overall guidance for the organization’s
long-term direction and ensures the
preservation of its values and beliefs. The
decisions on investments and debt policies
are made at the corporate level, and are
aimed at maintaining the company’s
investment grade rating. Our long-term
plans are based on information on macroeconomic scenarios, and the supply and
demand for raw materials and energy.
The strategic planning cycle encompasses
all material aspects of sustainability as
guiding parameters.
Budgets are made based on “Year 1”
of the strategic plan, and short and
medium-term targets are established
for all managers. Other employees also
have targets as a result of the cascading
down of the budget to the level of
operating unit. The monitoring of budget
performance includes a DVA (distribution
of value added) analysis, which details
the amount of taxes paid and the
amounts distributed to the company’s
various stakeholder groups.
The strategic plan includes a risk analysis
of all the material aspects, including
those related to climate change.
Insurance policies are managed and
controlled, especially those directly linked
to aspects of manufacturing operations
and supply of raw materials.
Yes, page 151.
G4-EC1 Direct
economic value
generated and
distributed
VCBR/VCNA/VCEAA
Pages 93 and 102
Yes, page 152
121
Material
Aspects
DMAs and
indicators
Page/response
Market
Presence
G4-DMA
Management
approach
In our licensing processes there are
typically specified issues related to
investment in the impacted communities.
Votorantim Cimentos has a policy of a
making a comprehensive evaluation of
this process, seeking to incorporate the
items to be developed, issues related to
the development of the community in
relation to the possibilities generated
by implementing the business activity,
both with direct aspects, such as hiring
local suppliers and employees, and with
indirect aspects, such as those related
to promoting the improvement of the
educational quality of young children.
At the consolidated operational level
there is a corporate goal to foster the
development of communities considered
to be priorities. In these cases the
organization contributes to developing
plans to improve public management and
to other initiatives for the economic and
social development of the community.
No, page 118.
G4-EC6 Proportion
of members
of senior
management
hired from the
local community
at significant
locations of
operation
VCBR
Pages 79 and 114
No, page 118.
G4-DMA
Management
approach
In our licensing processes there are
typically specified issues related to
investment in the impacted communities.
Votorantim Cimentos has a policy of a
making a comprehensive evaluation of
this process, seeking to incorporate the
items to be developed, issues related to
the development of the community in
relation to the possibilities generated
by implementing the business activity,
both with direct aspects, such as hiring
local suppliers and employees, and with
indirect aspects, such as those related
to promoting the improvement of the
educational quality of young children.
At the consolidated operational level
there is a corporate goal to foster the
development of communities considered
to be priorities. In these cases the
organization contributes to developing
plans to improve public management and
to other initiatives for the economic and
social development of the community.
No, page 118.
Indirect
economic
impacts
122
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Omission
External
assurance
Indirect
economic
impacts
G4-EC7
Development
and impact of
infrastructure
investments and
services supported
VCBR
Page 75
No, page 118.
Procurement
Practices
G4-DMA
Management
approach
In 2012, the company established a
corporate policy to develop local suppliers.
Then, in 2013, a number of pilot projects
were initiated at some of Votorantim
Cimentos’ units. The management of the
process is currently being fully developed.
No, page 118.
G4-EC9 Proportion
of spending on
local suppliers
at significant
locations of
operation.
VCBR
Pages 87 and 103
No, page 118.
G4-DMA
Management
approach
Votorantim Cimentos’ requirements for
raw materials are managed based on
five-year demand forecasts (strategic
planning), the available inventories
of resources (renewable and nonrenewable), the management of mining
exploration and production licenses and
production capacity.
In the annual budgets the consumption
volumes for the following year are
updated and, during the current year,
sales and production volumes are
planned on a quarterly basis in order to
administer the flow of materials.
Yes, page 151.
G4-EN1 Materials
used by weight or
volume
VCBR, VCNA and VCEAA
Page 109
Yes, page 151.
G4-DMA
Management
approach
The energy demand by segment is defined
in the strategic plan. Action plans are
prepared to meet this demand with
medium and long-term supply contracts.
For day-to-day energy management, the
units have energy efficiency programs
to optimize the use of inputs, and the
technology and development areas
research the possibilities for new
processes and energy sources.
The energy data (in GJ) reported in the
EN3 and EN4 indicators are consolidated
in Votorantim Cimentos using a protocol
for energy and emissions.
Yes, page 151.
Environmental Category UNGC
Materials
Energy
123
Material
Aspects
DMAs and
indicators
Page/response
Energy
G4-EN3 Energy
consumption
inside the
organization
Pages 107 and 108
Yes, page 151.
G4-EN4 Energy
consumption
outside of the
organization
Page 108
Yes, page 151.
G4-EN5 Energy
intensity
Page 109
Yes, page 151.
G4-DMA
Management
approach
Not responded
Yes, page 151.
G4-EN8 Total water
withdrawn by
source
Not responded
G4-DMA
Votorantim Cimentos uses a tool called
IBAT to evaluate the overlaps between
the company’s operations and areas of
high biodiversity value. All of the legal
requirements for biodiversity issues in the
licensing of our operations are managed
in a centralized system. In addition,
Votorantim’s industrial companies, due
to their mining and forestry activities,
prepare reports on their impacts
and dependence on biodiversity and
ecosystem services.
Yes, page 151.
G4-EN11
Operational sites
owned, leased,
or managed in,
or adjacent to,
protected areas
and areas of high
biodiversity value
which are in
areas outside of
protected areas
VCBR/VCNA/VCEAA
Pages 66 and 111
Yes, page 151.
Water
Biodiversity
124
Management
approach
Omission
External
assurance
No information
available. With the
expansion of operations
to Europe, Asia and
Africa
(VCEAA) in 2013, we
are making a study to
identify the areas of
greatest water stress and
consumption in our units.
Therefore, we do not have
detailed information
available on the total
water withdrawn by
source for this reporting
cycle. This information
will be reported in the
years to come.
Yes, page 151.
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Emissions
G4-DMA
Management
approach
All the legal parameters regarding
authorizations for gaseous emissions and
particulate matter comply strictly with
the legal aspects and numerical values
specified in their licensing processes.
The company has a goal of reducing
emissions per metric ton of production in
all its processes, especially those related
to greenhouse gases.
Votorantim Cimentos continuously
monitors the emissions of its major
pollutants (particulate matter, NOx
and SO2). It also monitors, on a noncontinuous basis, using third-party
isokinetic measurements, the emissions
from major and minor pollutants (metals,
dioxins and furans, THC etc.).
Yes, page 151.
G4-EN15 Direct
greenhouse gas
(GHG) Emissions
(Scope 1)
Pages 106 and 107
Yes, page 151.
G4-EN16
Energy indirect
greenhouse gas
(GHG) emissions
(Scope 2)
Page 107
Yes, page 151.
G4-EN17
Other indirect
greenhouse gas
(GHG) emissions
(Scope 3)
VCBR
Page 107
Yes, page 151.
G4-EN18
greenhouse gas
(GHG) emissions
intensity
Pages 106 and 107
Yes, page 151.
G4-EN19 Reduction
of greenhouse gas
(GHG) emissions
Page 106
Yes, page 151.
G4-EN21 NOx,SOx,
and other
significant air
emissions
Pages 109 and 110
Yes, page 151.
Omission
External
assurance
125
Material
Aspects
DMAs and
indicators
Page/response
Effluents and
waste
G4-DMA
Management
approach
We comply with all legal requirements
concerning effluents and waste and
with the values specified in the licensing
process.
Yes, page 151.
G4-EN23 Total
weight of waste by
type and disposal
method
VCBR/VCNA/VCEAA
Page 111
Yes, page 151.
G4-DMA
Management
approach
We follow all the criteria demanded by
customers related to these issues.
For the products destined to direct
consumption, for example, cement for
construction, we have developed best
practice manuals for their use.
No, page 118.
G4-EN27 Extent of
impact mitigation
of environmental
impacts of
products and
services
VCBR/VCNA
Page 51
No, page 118.
G4-DMA
Management
approach
Votorantim Cimentos has a centralized
management system for operating
licenses, which controls the deadlines
and the budget for legal issues and
licensing operations.
In the event of fines, a technical analysis
is undertaken, and, when appropriate, an
appeal to the appropriate judicial bodies
is made. In addition, the company’s
internal policies dictate that fines and
other legal processes must be quantified
and the respective amounts allocated
in the balance sheet, following the IFRS
accounting rules, and in accordance with
the criteria for establishing whether a
loss is possible/probable or remote in the
case of legal action.
Yes, page 151.
G4-EN29 Monetary
value of significant
fines and total
number of
non-monetary
sanctions
due to noncompliance with
environmental
laws and
regulations
VCBR
Page 106
Yes, page 151.
G4-DMA
Management
approach
Votorantim Cimentos, by means of its
logistics and supply area, encourages
its suppliers to adhere to the principles
established in our global environmental
policy and green rules.
No, page 118.
Products
and services
Compliance
Transport
126
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Transport
G4-EN30
Significant
environmental
impacts of
transporting
products and
other goods and
materials used for
the organization’s
operations, and
the transportation
of its employees
VCBR
Page 109
No, page 118.
General
G4-DMA
Management
approach
The budget for environmental issues
and CAPEX projects are decided during
the strategic planning process, which
defines the allocation of resources for
the next five years. The next step of the
management process is the preparation
of the annual budget, where the
investments are detailed and approved
for implementation. The monitoring of
the budget is performed monthly using
data available in SAP and is discussed
in internal meetings held at each unit.
CAPEX projects are monitored monthly,
at Engineering meetings, in accordance
with the CAPEX Manual.
No, page 118.
G4-EN31 Total
environmental
protection
expenditures and
investments, by
type.
VCBR/VCNA/VCEAA
Pages 54 and 106
No, page 118.
G4-DMA
Management
approach
We evaluate suppliers in terms of
environmental criteria with regard to their
eligibility, registration and capability. In
the phase of eligibility and registration,
100% of new suppliers are subject to
an assessment of their Conformity
Certificates (Federal Taxes, Social
Security (INSS) and FGTS payments). The
evaluation of supplier capability also
includes relevant environmental criteria.
However, the evaluation of capability
is only carried out for the main supplier
group or on demand.
Yes, page 151.
G4-EN32
Percentage of new
suppliers that were
screened using
environmental
criteria
VCBR
Pages 87 e 103
Yes, page 151.
Supplier
environmental
assessment
Omission
External
assurance
127
Material
Aspects
DMAs and
indicators
Page/response
Environmental
grievance
mechanisms
G4-DMA
Management
approach
The company has an Ombudsman area
which is available in Brazil and overseas,
in 8 languages. It can be accessed by
employees, customers, suppliers and other
stakeholders. Users may ask questions
or report complaints regarding alleged
violations of the Code of Conduct. Among
the complaints the most prominent
relate to issues such as harassment,
discrimination, abuse of power, corruption
or other forms of unethical behavior.
All reports received are handled by the
Ombudsman area with impartiality and
confidentiality. The area analyzes the
reports and distributes them to be resolved.
The company is committed to investigating
all the reports received and to respond,
in a timely manner, with remedial and
educational actions, as applicable.
The company is committed to the resolution
of cases in an appropriate time frame,
seeking to improve and shorten this period
as much as possible. The Ombudsman area
has a system which allows the person filing
the report to monitor the process at any
time, while preserving his/her identity by
using a code.
The training of the employees who work
in the Ombudsmen area is conducted in
various ways including both in-person
courses and distance learning, based on
on-line e-learning platforms. These courses
are available in several languages.
privacy and protection issues, inherent
in its activities, very seriously. The area is
structured, in line with requirements of the
data privacy and protection legislation in
the countries where Votorantim Cimentos
operates, and is comparable to the best
market practices.
No, page 118.
G4-EN34 Number
of grievances
related to
environmental
impacts filed,
addressed and
resolved through
formal grievance
mechanisms
Page 105
No, page 118.
128
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Omission
External
assurance
CateSocial category - labor practices and decent work UNGC
Employment
Occupational
health and
safety
G4-DMA
Management
approach
Votorantim Cimentos’ guidelines and
policies for human resources include:
1) Hiring: the company values
competence, with fair and equitable
opportunities for all.
2) Career management: the company
values: meritocracy, pragmatism,
excellence, open dialogue for all questions,
and a sense of belonging. Career
management includes setting short
and long-term targets, management
of an opportunities pipeline and
professional training, including courses
at the corporate university (Votorantim
Academy).
3) Termination: a questionnaire of
the degree of satisfaction/motives for
leaving is conducted for both voluntary
and involuntary terminations in order
to understand the circumstances and
improve the management of the subject.
No, page 118.
G4-LA1 Total
number and rates
of new employee
hires and employee
turnover by age
group, gender and
region
VCBR/VCNA/VCEAA
Page 112
No, page 118.
G4-DMA
Management
approach
Votorantim Cimentos seeks to use best
practices for the efficient management
of the health and safety of its employees
and third parties. In 2014, in order to
disseminate our Global Health and
Safety Policy and “Rules for Life” safety
program, we mobilized our employees
to participate in the event Global
Safety Day which from now on will be
a permanent fixture in the company’s
annual calendar of events.
Yes, page 151.
G4-LA6 Type
of injury and
rates of injury,
occupational
diseases, lost
days, absenteeism
and total number
of work-related
fatalities, by region
and gender
VCBR/VCNA/VCEAA
Page 114
Yes, page 151.
129
Material
Aspects
DMAs and
indicators
Page/response
Training and
education
G4-DMA
Management
approach
Each unit develops training plans based
on the technical and management needs
of its operations. For management
positions there is a Corporate University
(Votorantim Academy), where courses
are given on leadership development and
the preservation of the company’s values
and management beliefs.
Performance evaluations are carried out
annually. The objectives and the targets
to be achieved during the current period
are defined for each position. In January
each year, the results are evaluated
using a standard format. A bonus is paid
according to the consensus classification
of performance agreed between the
manager of the area and the employee.
No, page 118.
G4-LA9 Average
number of hours
of training per
year per employee,
broken down
by gender and
employee category
VCBR/VCNA/VCEAA
Page 113
No, page 118.
G4-LA11 Percentage
of employees
receiving regular
performance
and career
development
reviews, by gender
and employee
category.
Page 78
No, page 118.
G4-DMA
Management
approach
All new Votorantim Cimentos’ hires are
based on criteria for competence and
there is no distinction between genders,
age groups, minorities, ethnic groups, or
other forms of discrimination. In some
of the industrial companies, specific
diversity committees seek to broaden the
understanding of the topic, expanding
opportunities.
No, page 118.
Diversity
and equal
opportunity
130
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Diversity
and equal
opportunity
G4-LA12
Composition of
governance bodies
and breakdown
of employees per
employee category
according to
gender, age group,
minority group
membership, and
other indicators of
diversity
VCBR/VCNA/VCEAA
Pages 82 and 113
No, page 118.
Equal
remuneration
for women
and men
G4-DMA
Management
approach
Not reported
No, page 118.
Not responded
G4-LA13 Ratio of
basic salary and
remuneration of
women to men, by
employee category,
by significant
locations of
operation
Supplier
assessment for
labor practices
Omission
External
assurance
Not applicable.
We do not manage
remuneration by gender,
so this item is
not applicable to our
business. Votorantim
Cimentos does not
differentiate salaries
between men and
women. Our practice
is to prepare a job
description and
evaluation, and
classify jobs into salary
groups according
to the operational,
technical, management
and financial
responsibilities.
There is no relation or
distinction of sex for the
person that holds or will
hold the job position.
G4-DMA
Management
approach
We evaluate suppliers in terms of labor
practices criteria with regard to their
eligibility, registration and capability. In
the phase of eligibility and registration,
100% of new suppliers are subject to an
assessment of their Conformity Certificates
(Federal Taxes, Social Security (INSS)
and FGTS payments). The evaluation of
supplier capability also includes labor
practices criteria. However, the evaluation
of capability is only carried out for the main
supplier group or on demand.
Yes, page 151.
G4-LA14 Percentage
of new suppliers
that were screened
using labor
practices criteria
VCBR
Pages 87 and 103
Yes, page 151.
131
Material
Aspects
DMAs and
indicators
Page/response
Labor practices
grievance
mechanisms
G4-DMA
Management
approach
using a code.
market practices.
No, page 118.
G4-LA16 Number
of grievances
about labor
practices filed,
addressed, and
resolved through
formal grievance
mechanisms
No, page 118.
132
Page 105
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Omission
External
assurance
Social category - human rights UNGC
Nondiscrimination
UNGC
Freedom of
association
and collective
bargaining
UNGC
G4-DMA
Management
approach
Votorantim Cimentos monitors the data
generated in the Ombudsman system on
a daily basis. This information is reported
monthly to the Audit Committee, and
bimonthly to the Conduct Committee,
as a basis for the discussion of the
strategies to be adopted. Cases related
to harassment and abuse of power
are directed to the area of Human and
Organizational Development, which
is responsible for the implementation
of training for managers. These
training courses aim to improve the
organizational climate and decrease
complaints/reports received.
Yes, page 151.
G4-HR3 Total
number of
incidents of
discrimination and
corrective actions
taken
Yes, page 151.
G4-DMA
Management
approach
Votorantim Cimentos has a code of
conduct with regard to free association,
recognizes trade unions as legal
representatives of employees and
seeks, consistent with its values and
management beliefs, to encourage open
dialogue between company employees
and their union representatives. The
company negotiates directly with
unions, in which besides the unions
the employees may participate at the
negotiating table
No, page 118.
Paginas 49 and 105
G4-HR4 Operations VCBR, VCNA and VCEAA
and suppliers
Page 88
identified in
which the right to
exercise freedom
of association
and collective
bargaining may
be violated or at
significant risk, and
measures taken
to support these
rights.
No, page 118.
133
Material
Aspects
DMAs and
indicators
Page/response
Child Labor
UNGC
G4-DMA
Management
approach
Child labor is not permitted by the
organization. The issues related to
this topic are addressed in the Code of
Conduct and also in operational control
audits. Complaints about such incidents
should be sent to the Ombudsman.
No, page 118.
G4-HR5 Operations
and suppliers
identified as having
significant risk
for incidents of
child labor, and
measures taken to
contribute to the
effective abolition
of child labor
VCBR/VCNA
Page 50
No, page 118.
G4-DMA
Management
approach
Forced and compulsory labor is not
permitted by the organization. The issues
related to this topic are addressed in the
Code of Conduct and also in operational
control audits. Complaints about
such incidents should be sent to the
Ombudsman.
No, page 118.
G4-HR6 Operations
and suppliers
identified as having
significant risk for
incidents of forced
or compulsory
labor and
measures taken to
contribute to the
elimination of all
forms of forced or
compulsory labor
VCBR/VCNA
Page 50
No, page 118.
G4-DMA
Management
approach
At Votorantim Cimentos the results of
internal audits are presented promptly
to the Audit Committee. These reports
include information on the status of the
audits, according to the annual audit
plan, the main points identified and the
status of the action plans prepared by
the areas being audited. At these same
meetings information is presented on the
Ombudsman’s activities, including the
number of complaints received and their
classification according to level of response
or solution. The time period for responding
to complaints is one of the targets of the
Ombudsman and Audit areas.
No, page 118.
Forced or
compulsory
labor
UNGC
Assessment
134
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Assessment
G4-HR9 Total
number and
percentage of
operations that
have been subject
to human rights
reviews or impact
assessments.
VCBR/VCNA/VCEAA
Page 47
No, page 118.
Supplier
human rights
assessment
G4-DMA
Management
approach
To be included in Votorantim Cimentos’
register of suppliers, they must submit
to an evaluation of their situation with
respect to the following items: financial,
tax and social security issues; clearance
certificate for labor debts. All contracts
include specific provisions defining the
responsibility for payment of social taxes
and the prohibition of child and forced
or compulsory labor. We conduct regular
audits of the service providers who carry
out their activities within our operating
units and, when necessary, at the
suppliers’ facilities.
In Brazil, suppliers listed on the Ministry
of Labor’s blacklist are automatically
blocked in our system.
Yes, page 151.
G4-HR10
VCBR
Pages 87 and 103
Yes, page 151.
Percentage of
new suppliers
that were
screened using
human rights
criteria
Omission
External
assurance
135
Material
Aspects
DMAs and
indicators
Page/response
Human rights
grievance
mechanisms
G4-DMA
Management
approach
using a code.
market practices.
No, page 118.
G4-HR12 Number
of grievances about
human rights
impacts filed,
addressed and
resolved through
formal grievance
mechanisms
No, page 118.
136
Page 105
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Omission
External
assurance
Social category – society
Local
communities
UNGC
Anticorruption
UNGC
G4-DMA
Management
approach
One of Votorantim Cimentos’
sustainability principles is to engage
with in the communities in which it
operates. The company has developed a
Stakeholder Engagement Handbook and
a methodology to evaluate social risks.
There is an annual review of the relations
with each community and the projects to
be developed and the priorities for action
are defined.
Yes, page 151.
G4-SO1 Percentage
of operations with
implemented
local community
engagement,
impact assessment
and development
programs.
Pages 72 e 115
Yes, page 151.
G4-DMA
Management
approach
The company’s governance structure
for fighting corruption includes:
the Ombudsman; Anti-corruption
Policy; Policy for Transactions with
Stakeholders; internal audit; internal
controls; and compliance.
Training sessions on these policies are
held annually for managers. All other
stakeholders are informed about them
through the Code of Conduct.
We launched our Global Anti-Corruption
and Compliance Policies. They explain
the rules that apply to our relations with
public officials and our commitment
to comply with the legislation, in a
totally transparent manner. We carried
out a series of internal campaigns to
disseminate these policies among our
employees.
These policies resulted in a number of
specific initiatives related to compliance,
and anti-corruption and fair competition
legislation.
We also implemented projects related to
anti-competitive behavior.
Yes, page 151.
G4-SO3 Total
number and
percentage of
operations that
were evaluated
for risks related to
corruption and the
significant risks
identified.
VCBR/VCNA
Page 47
Yes, page 151.
137
Material
Aspects
DMAs and
indicators
Page/response
Anticorruption
UNGC
G4-SO4
Communication
and training on
anti-corruption
policies and
procedures
VCBR
Page 104
No, page 118.
G4-SO5 Confirmed
incidents of
corruption and
actions taken
VCBR/VCNA/VCEAA
No, page 118.
G4-DMA
Management
approach
Our relations with candidates for
public office in elections are guided by
our Handbook for Conduct in Electoral
Processes.
The handbook is distributed to all the
company’s managers, and provides
information and recommendations on
Votorantim Cimentos’ corporate conduct
in electoral processes. In line with our
standard practice the handbook was
updated prior to the elections in 2014.
In addition we have a Corporate Policy
for Election Donations which establishes
corporate guidelines for the company’s
donations in election campaigns. This
policy is available on our website at:
(www.votorantim.com).
Yes, page 151.
G4-SO6 Total value
of contributions
to politicians
and political
parties, broken
down by country
and recipient/
beneficiary
VCBR
Page 103
Yes, page 151.
G4-DMA
Management
approach
We launched our Global Anti-Corruption
and Compliance Policies. They explain
the rules that apply to our relations with
public officials and our commitment
to comply with the legislation, in a
totally transparent manner. We carried
out a series of internal campaigns to
disseminate these policies among our
employees.
These policies resulted in a number of
specific initiatives related to compliance,
and anti-corruption and fair competition
legislation.
We also implemented projects related to
anti-competitive behavior.
Yes, page 151.
Public policy
UNGC
Anticompetitive
behavior
138
Omission
External
assurance
Votorantim Cimentos did not receive any
complaints related to incidents of corruption
through the Ombudsman channel.
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Anticompetitive
behavior
G4-SO7 Total
number of legal
actions for anticompetitive
behavior, anti-trust
and monopoly
practices and their
outcomes.
VCBR/VCNA/VCEAA
Page 104
Yes, page 151.
Compliance
G4-DMA
Management
approach
In the event of fines, a technical analysis
is undertaken, and, when appropriate, an
appeal to the appropriate judicial bodies
is made. In addition, the company’s
internal policies dictate that fines and
other legal processes must be quantified
and the respective amounts allocated
in the balance sheet, following the IFRS
accounting rules, and in accordance with
the criteria for establishing whether a
loss is possible/probable or remote in the
case of legal action.
No, page 118.
G4-SO8 Monetary
value of significant
fines and total
number of
non-monetary
sanctions due to
non-compliance
with laws and
regulations
VCBR/VCNA
Page 104
No, page 118.
G4-DMA
Management
approach
Not responded
No, page 118.
G4-SO9 Percentage
of new suppliers
that were screened
using criteria for
impacts on society
Not responded
Supplier
assessment for
impacts
on society
Omission
Votorantim Cimentos
does not currently
have data available to
report this indicator.
We are reviewing the
appropriate way to
measure and manage
this broad subject for
our suppliers
External
assurance
Yes, page 151.
139
Material
Aspects
DMAs and
indicators
Page/response
Grievance
mechanisms
for impacts on
society
G4-DMA
Management
approach
using a code.
market practices.
No, page 118.
G4-SO11 Number
of grievances
related to impacts
on society filed,
addressed and
resolved through
formal grievance
mechanisms
VCBR, VCNA e VCEAA
Page 105
No, page 118.
140
Omission
External
assurance
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Omission
External
assurance
Social category – product responsibility
Product
and service
labeling
G4-DMA
Management
approach
We adopted a new methodology for our
customer satisfaction survey, the “Net
Promoter Score (NPS)”, which indicates
the percentage of customers who would
recommend our company. In this type
of survey, the client is asked to assign a
grade to Votorantim Cimentos, on a scale
of 1 to 10, where 0 is “I would definitely
not recommend” and 10 is “I would
definitely recommend”. Customers that
attribute scores of 9 or 10 are classified
as “promoters”. The Net Promoter score is
calculated by subtracting the percentage
of detractors (scores 1 to 6) from the
percentage of promoters (scores 9 and 10).
No, page 118.
G4-PR5 Results
VCBR
Page 85 e 103
No, page 118.
of surveys
measuring
customer
satisfaction
Category Sector Supplement – Mining and Metals
Biodiversity
G4-DMA
Management
approach
We use the IBAT tool to evaluate our
operations that overlap in highly
relevant areas of biodiversity and
establish biodiversity management
plans for such areas.
Yes, page 151.
G4-MM2 Number
and percentage
of total sites
identified as
requiring
biodiversity
management
plans according
to stated criteria
and the number
(percentage) of
those sites with
plans in place
VCBR/VCNA/VCEAA
Pages 66 and 111
Yes, page 151.
141
Material
Aspects
DMAs and
indicators
Page/response
Communities
G4-DMA
Management
approach
using a code.
market practices.
G4-MM7 The
extent to which
grievance
mechanisms were
used to resolve
disputes related to
land use relating
to land use,
customary rights of
local communities
and indigenous
peoples, and the
outcomes
VCBR/VCNA/VCEAA
142
Votorantim Cimentos did not register
any complaints on this topic during the
reporting period.
Omission
External
assurance
No, page 118.
No information
available. Votorantim
Cement monitors the
number of grievances
through its Ombudsman
area. However,
these grievances are
consolidated
and cannot be separated
into individual categories
for 2013. As from
from the 2015 report, the
company will report the
events by category
No, page 118.
VOTORANTIM CIMENTOS
Material
Aspects
DMAs and
indicators
Page/response
Compliance
G4-DMA
Management
approach
Votorantim Cimentos complies with the
applicable legislation in the countries
where it operates and adopts the best
operating practices. The company makes
provisions for the costs related to such
operations (ARO) in accordance with the
IFRS accounting standards.
Yes, page 151.
G4-MM10 Number
and percentage of
operations with
closure plans
VCBR/VCNA/VCEAA
Pages 68 and 111
Yes, page 151.
Omission
External
assurance
143
Correlations
Material Issues and GRI Aspects
Ethics, transparency and integrity
Occupational health and safety
CO2 emissions
Anti-corruption practices, cartels and unfair competition
Regulatory risks
Economic performance: economic value generated
and distributed
Energy efficiency
Alternative energy sources and alternative fuels
Air emissions (Particulate Matter, NOX, SOX)
Management and reuse of construction waste, and
reverse logistics of cement bags
Water consumption
Biodiversity preservation
Customer relations and satisfaction
Management of business risks
Policies, reviews, audits, licenses and certification
of systems
Fines and legal compliance
Employment and labor relations
Training, capacity-building and employee
development
Respect for human rights in operations and
supply chain
Partnerships and strategic alliances
Alternative sources of raw materials and resources
Low carbon products
Product life-cycle and social and environmental
impacts
Innovation, research and development
Climate change mitigation and adaptation
Sustainable concrete
Inclusive and sustainable construction
Mining life-cycle processes
Water and effluent management
Certifications obtained and adaptation to international standards
Internal engagement on sustainability
Social dialogue and freedom of association
Indigenous peoples’ rights
Diversity and social inclusion
Environmental product declaration
VERY HIGH DEGREE OF MATERIALITY
High degree of materiality
Medium degree of materiality Low degree of materiality
144
VOTORANTIM CIMENTOS
Correlations
Correlation of material issues and GRI aspects [G4-21 and G4-20]
VC Material Issues
GRI Issues
Indicators
Stakeholders
Safety
G4-LA5
Health and Safety
own employees
and contractors
G4-LA6
LA – Occupational Health and Safety
G4-LA7
Employees
Shareholders
G4-LA8
G4-56
Ethics,
Transparency
and Integrity
General Standard Disclosures - Ethics And
Integrity
G4-57
Employees
Shareholders
Society
G4-58
Regulatory Risks
None
None
Ethics and Compliance
G4-SO3
Anti-corruption
practices; cartels
and unfair
competition
SO – Anti-corruption
G4-SO4
G4-SO5
G4-SO7
General Standard Disclosures – Organizational
Profile
G4-12
Suppliers
G4-EN32
Employees
Suppliers
Customers
Society
Environment
G4-EN33
LA – Supplier Assessment for Labor Practices
G4-LA15
Employees
Suppliers
Customers
Society
HR – Supplier Human Rights Assessment
G4-HR11
Employees
Suppliers
Customers
Society
SO – Supplier Assessment for Impacts on
Society
Competitors
Shareholders
Society
SO – Anti-competitive Behavior
EN – Supplier Environmental Assessment
Supply chain
management
(includes:
evaluation and
management
of suppliers,
auditing, etc.)
Employees
Society
G4-SO9
G4-SO10
Employees
Suppliers
Customers
Society
145
Correlations
VC Material Issues
GRI Issues
Indicators
Stakeholders
G4-EN8
Water
consumption
EN – Water
G4-EN9
Environment
G4-EN10
G4-EN3
Energy efficiency
(alternative energy
sources
G4-EN4
EN – Energy
G4-EN5
Environment
Customers
G4-EN6
Eco-Efficiency and Innovation
G4-EN7
Atmospheric
Emissions (PM,
NOx, SOx)
EN – Emissions
EN – Transportation
G4-EN20
G4-EN21
G4-EN30
Environment
Society
Environment
Employees
G4-EN15
G4-EN16
CO2 Emissions
EN – Emissions
G4-EN17
Environment
Society
G4-EN18
G4-EN19
Management
and reuse of
construction
waste, and reverse
logistics of used
cement bags
EN – Materials
EN – Effluents And Waste
EN – Products and Services
G4-EN2
Environment
Society
Suppliers
G4-EN23
Environment
G4-EN1
G4-EN27
G4-EN28
Environment
Customers
G4-EN11
Biodiversity
preservation
EN – Biodiversity
G4-EN12
G4-EN13
Environment
G4-EN14
146
VOTORANTIM CIMENTOS
Correlations
VC Material Issues
GRI Issues
Indicators
G4-EC5
EC – Market Presence
G4-EC6
Stakeholders
Employees
Shareholders
Society
G4-EC7
Contribution to
local development
EC – Indirect Economic Impacts
Society
G4-EC8
EC – Procurement Practices
G4-EC9
Employees
Suppliers
G4-SO1
SO – Local Communities
Society
G4-SO2
G4-24
General standard disclosures – Stakeholder
Engagement
G4-25
G4-26
Employees
Customers
Suppliers
Society
Government
G4-27
Stakeholder
relations
(government,
customers and
community)
EN – Environmental Grievance Mechanisms
G4-EN34
Society
Environment
LA – Labor Practices Grievance Mechanisms
G4-LA16
Employees
HR – Human Rights Grievance Mechanisms
G4-HR12
Employees
Suppliers
Customers
SO – Local Communities
MM7
Society
SO – Public Policy
G4-SO6
Society
Government
SO – Grievance Mechanisms for Impacts on
Society
G4-SO11
Society
Economic value
generated and
distributed
EC – Economic Performance
G4-EC1
Employees
Suppliers
Shareholders
Government
Society
Customer relations
and satisfaction
PR – Rotulagem de produtos e serviços
G4-PR5
Customers
147
Correlations
UN Global Compact Principles
The UN Global Compact Principles
HUMAN RIGHTS
1. Support and respect the protection of internationally proclaimed human rights; and
2. Make sure that they are not complicit in human rights abuses.
LABOR
3. Uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. The elimination of all forms of forced and compulsory labor;
5. The effective abolition of child labor; and
6. The elimination of discrimination in respect of employment and occupation.
ENVIRONMENT
7. Support a precautionary approach to environmental challenges;
8. Undertake initiatives to promote greater environmental responsibility; and
9. Encourage the development and diffusion of environmentally friendly technologies.
ANTI-CORRUPTION
10. Work against corruption in all its forms, including extortion and bribery.
148
VOTORANTIM CIMENTOS
Correlations
Correlations
IIRC Capitals
Material Issues
Ethics, transparency and integrity
Occupational health and safety
CO2 emissions
Anti-corruption practices, cartels and unfair competition
Regulatory risks
Form of Capital
Social and Relationship Capital
Human Capital
Natural Capital
Economic performance: economic value generated and distributed
Financial Capital
Energy efficiency
Natural Capital
Alternative energy sources and alternative fuels
Natural Capital
Air emissions (Particulate Matter, NOX, SOX)
Natural Capital
Management and reuse of construction waste, and reverse logistics of cement bags
Natural Capital
Water consumption
Natural Capital
Customer relations and satisfaction
Biodiversity preservation
Natural Capital
149
Correlations
About the Report
[G4-18, G4-23, G4-28, G4-29, G4-30, G4-31, G4-32 and G4-33]
The financial and non-financial
information presented in this report
covers the units located in Brazil
(VCBR), in VCNA (US and Canada),
in VCEAA (Spain, Morocco, Tunisia,
Turkey, India and China) and in South
America (Argentina, Bolivia, Chile,
Peru and Uruguay).
It encompasses our four main business areas: cement, concrete, aggregates, and complementary products
(mortars and agricultural lime).
For the first time, we are publishing a
report in the format of an integrated
report. This report, the Votorantim Cimentos Integrated Report
2014, aims to present our activities
during the year in a transparent and
structured manner. We have provided information on our strategy,
business model, market positioning,
material issues, activities, performance and the initiatives with our
main stakeholder groups and society.
The report was prepared based on the
most recent version (G4) of the Global
Reporting Initiative (GRI) guidelines
for sustainability reporting and the
recommendations of the International Integrated Reporting Council
(IIRC) for integrated reporting.
Based on the above guidelines we
have integrated both financial and
non-financial information, in a
single narrative, permeated by the
issues which are most relevant to
Votorantim Cimentos, including our
corporate identity, governance structure sustainability strategy, market
positioning and business activities
and results.
the Table of GRI Indicators or in comments referenced in the body of the
report. The report is issued annually
and the previous report contained
the information for 2013.
Our independent auditors, PricewaterhouseCoopers (PwC), have audited
the financial information and provided
limited external assurance on the non-financial information in the report.
In addition the Global Reporting Initiative (GRI) has reviewed the report
in relation to the aspect of Materiality
Disclosure. Although not required by
internal policies, the external assurance process was a requirement set by
senior management.
The Votorantim Cimentos Integrated
Report 2014 is being published in Portuguese and English, and in print and
PDF versions.
The PDF version of the report is available at: www.votorancimentos.com.
Your opinion is very important to us.
Please send your feedback, comments
or questions to:[email protected].
This report covers the strategies, projects, initiatives, products, services,
operations and business activities of
Votorantim Cimentos for 2014. Detailed information on GRI Indicators,
and any specific limitations on the
scope or boundaries, can be found in
150
VOTORANTIM CIMENTOS
Letter of Assurance
Independent auditor’s limited assurance report on
information related to sustainability included in
the 2014 Integrated Report
To the Board of Directors
Votorantim Cimentos S.A.
São Paulo - SP
Introduction
We have been engaged by Votorantim Cimentos S.A. (“Company”) to present
our limited assurance report on the compilation of the information related to
sustainability included in the Company’s 2014 Integrated for the year ended
December 31, 2014.
Responsibilities of the management of the Company
The management of the Company is responsible for the preparation and fair presentation of the information related to sustainability included in the 2104 Integrated
Report, in accordance with the guidelines of the Global Reporting Initiative (GRI-G4),
and for such internal control as it determines is necessary to enable the preparation
of information free from material misstatement, whether due to fraud or error.
Independent auditor’s responsibility
Our responsibility is to express a conclusion on the information related to sustainability included in the 2014 Integrated Report, based on our limited assurance
engagement carried out in accordance with the Technical Communication CTO
01, “Issuance of an Assurance Report Related to Sustainability and Social Responsibility”, issued by the Brazilian Federal Accounting Council (“CFC”), based on the
Brazilian standard NBC TO 3000, “Assurance Engagements Other than Audit and
Review”, also issued by the CFC, which is equivalent to the international standard
ISAE 3000, “Assurance engagements other than audits or reviews of historical financial information”, issued by the International Auditing and Assurance Standards Board (IAASB). Those standards require that we comply with ethical requirements, including independence requirements, and perform our engagement to
obtain limited assurance that the information related to sustainability included in
the 2014 Integrated Report, taken as a whole, is free from material misstatement.
151
Correlations
Letter of Assurance
A limited assurance engagement conducted in accordance
with the Brazilian standard NBC TO 3000 and ISAE 3000
mainly consists of making inquiries of management and other
professionals of the entity involved in the preparation of the
information, as well as applying analytical procedures to obtain
evidence that allows us to issue a limited assurance conclusion
on the information, taken as a whole. A limited assurance engagement also requires the performance of additional procedures
when the independent auditor becomes aware of matters that
lead him to believe that the information taken as a whole might
present significant misstatements.
The procedures selected are based on our understanding of
the aspects related to the compilation and presentation of
the information related to sustainability included in the 2014
Integrated Report, other circumstances of the engagement,
and our analysis of the areas in which significant misstatements might exist. The following procedures were adopted:
(a) planning the work, taking into consideration the materiality and the volume of quantitative and qualitative information and the operating and internal control systems that
were used to prepare the information related to sustainability included in the 2014 Integrated Report;
(b) understanding the calculation methodology and the procedures adopted for the compilation of indicators through interviews with the managers responsible for the preparation
of the information;
(c) interviewing the members of management responsible
for the information of Votorantim Cimentos São Paulo and
Curitiba, Çorum (Turkey) and Rio Branco (indicators referring
to Votorantim Cimentos);
(d) applying analytical procedures to quantitative information and making inquiries regarding the qualitative information and its correlation with the indicators disclosed in the
information related to sustainability included in the 2014
Integrated Report;
(e) obtaining evidence about the most significant GRI-G4
indicators included in the 2014 Integrated Report and presented in the “GRI Index”; and
(f) comparing the financial indicators with the financial
statements and/or accounting records.
152
The limited assurance engagement also included tests to
assess compliance with the guidelines and criteria applied in
the preparation of the information related to sustainability
included in the 2014 Integrated Report.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our limited assurance
conclusion.
Scope and limitations
The procedures applied in a limited assurance engagement are
substantially less than those applied in a reasonable assurance engagement, the objective of which is the issuance of
an opinion on the information related to sustainability in the
report. Consequently, we were not able to obtain reasonable
assurance that we were aware of all significant matters that
might be identified in a reasonable assurance engagement,
the objective of which is the issuance of an opinion. Had we
performed an engagement with the objective of issuing an
opinion, we might have identified other matters and possible
misstatements in the information related to sustainability
included in the 2014 Integrated Report. Accordingly, we do not
express an opinion on this information.
Non-financial data are subject to more inherent limitations
than financial data, due to the nature and diversity of the
methods used to determine, calculate and estimate these data.
Qualitative interpretations of the relevance, materiality and
accuracy of the data are subject to individual assumptions and
judgments. Furthermore, we did not consider in our engagement the data reported for prior years, nor future projections
and goals.
Conclusion
Based on the procedures performed, as described herein, no
matter has come to our attention that causes us to believe
that the information related to sustainability included in the
Votorantim Cimentos S.A 2014 Integrated Report has not
been compiled, in all material respects, in accordance with
the guidelines of the Global Reporting Initiative (GRI-G4)..
São Paulo, May 29, 2015
PricewaterhouseCoopers
Contadores Públicos Ltda
CRC 2SP023.173/O-4
André Pannunzio
Candido Oliveira
Contador CRC 1SP-196603/O-1
VOTORANTIM CIMENTOS
Financial Statements
Financial
Statements
Balance Sheet
Years ended December 31
All amounts in thousands of reais
Parent company
Assets
Consolidated
2014
2013
2014
2013
188,676
14,218
955,327
665,588
1,456,432
1,027,785
1,570,713
1,274,323
Current assets
Cash and cash equivalents
Financial investments
15,010
Derivative financial instruments
17,526
Trade accounts receivable
305,571
302,390
1,148,809
1,096,596
Inventory
432,225
484,343
1,302,235
1,305,655
Other taxes recoverable
107,497
86,900
196,346
179,448
28,694
95,826
75,212
161,686
Advances to suppliers
29,314
31,239
82,826
74,401
Dividends receivable
42,741
143,974
31,224
24,555
Other assets
33,427
61,122
149,678
154,578
2,624,577
2,262,807
5,512,370
4,954,356
1,285,785
787,981
2,262,807
6,798,155
5,742,337
Current income tax and social contribution receivable
Assets of disposal group classified as held for sale
36,509
2,661,086
Non-current assets
Long-term receivables
Related parties
Judicial deposits
91,156
91,156
23,983
17,833
135,687
103,767
126,603
132,369
196,153
206,779
421,662
320,080
Deferred taxes
Other assets
Investments in associates and joint ventures
Property, plant and equipment
Intangible assets
Total assets
155,904
172,802
247,500
269,802
53,075
61,243
144,405
172,885
450,721
384,247
1,236,563
1,073,313
12,204,889
13,283,863
1,677,115
1,553,893
4,982,531
4,945,756
10,647,488
10,384,454
828,571
765,548
5,267,054
5,156,829
18,015,991
18,995,167
17,591,657
17,095,176
21,127,798
21,642,221
25,626,375
23,910,826
153
Balance Sheet
Parent company
Liabilities and stockholders’ equity
Consolidated
2014
2013
2014
2013
617,046
552,526
772,368
721,745
76,386
182
76,386
2,450
Trade payables
373,041
351,961
1,232,301
910,705
Payables - Trading
116,240
112,445
116,240
112,445
Salaries and payroll charges
166,997
159,981
316,668
292,606
14,138
68,618
137,044
99,489
220,417
205,783
116,722
1,880
122,100
45,664
5,013
6,990
25,491
69,957
Current liabilities
Loans and financing
Income tax and social contribution payable
Taxes payable
Dividends payable
Advances from customers
24,859
Use of public assets
Other liabilities
131,944
119,859
263,405
231,919
1,740,433
1,405,313
3,159,514
2,686,751
895,235
390,305
Liabilities of disposal group classified as held for sale
1,740,433
1,405,313
4,054,749
3,077,056
12,623,807
11,326,447
13,652,822
12,779,596
459,311
2,860,017
71,445
151,623
424,874
582,960
776,102
913,990
Deferred taxes
43,154
107,518
510,947
498,318
Payables to investees
31,563
26,407
Non-current liabilities
Loans and financing
3,826
Related parties
Provisions
3,826
398,525
Use of public assets
Pension liabilities
Other liabilities
Total liabilities
154
154,314
140,897
84,114
169,379
242,287
334,163
13,666,823
15,076,554
15,407,917
15,220,938
15,407,256
16,481,867
19,462,666
18,297,994
VOTORANTIM CIMENTOS
Parent company
Liabilities and stockholders’ equity
Consolidated
2014
2013
2014
2013
Capital
2,730,875
2,731,375
2,730,875
2,731,375
Revenue reserves
2,254,332
1,761,803
2,254,332
1,761,803
735,335
667,176
735,335
667,176
5,720,542
5,160,354
5,720,542
5,160,354
443,167
452,478
Stockholders’ equity
Cumulative other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total stockholders’ equity
5,720,542
5,160,354
6,163,709
5,612,832
Total liabilities and stockholders’ equity
21,127,798
21,642,221
25,626,375
23,910,826
Income Statement
Parent company
Consolidated
2014
2013
2014
2013
6,642,445
6,330,908
12,883,566
12,142,288
(3,767,944)
(3,664,506)
(8,568,924)
(8,102,841)
2,874,501
2,666,402
4,314,642
4,039,447
(721,169)
(592,665)
(1,061,881)
(893,711)
(563,168)
(506,255)
(885,999)
(790,373)
62,814
59,784
234,093
326,125
(1,221,523)
(1,039,136)
(1,713,787)
(1,357,959)
1,652,978
1,627,266
2,600,855
2,681,488
743,025
774,123
187,687
96,863
Continuing operations
Revenue
Cost of sales and services
Gross profit
Operating income (expenses)
Selling
General and administrative
Other operating income, net
Operating profit before equity results and net financial results
Results of investees
Equity in the results of associates and joint ventures
Realization of other comprehensive income on disposal
of investments
31,045
743,025
805,168
31,045
187,687
127,908
155
Income Statement
Parent company
Consolidated
2014
2013
2014
2013
254,263
186,330
319,888
376,101
(1,423,027)
(925,452)
(1,679,281)
(1,072,152)
(60,604)
(42,241)
(82,282)
(89,745)
(1,229,368)
(781,363)
(1,441,675)
(785,796)
1,166,635
1,651,071
1,346,867
2,023,600
8,502
(304,079)
(231,789)
(551,810)
(91,906)
(19,168)
9,493
(34,098)
1,083,231
1,327,824
1,124,571
1,437,692
16,221
(48,857)
Net financial results
Financial income
Financial expenses
Exchange variations, net
Profit before taxation
Income tax and social contribution
Current
Deferred
Profit for the year from continuing operations
Discontinued operations
Profit (loss) for the year from discontinued operations
Net income for the year
1,083,231
1,327,824
1,140,792
1,388,835
Net income attributable to the owners of the parent
1,083,231
1,327,824
1,083,231
1,327,824
57,561
61,011
Net income attributable to non-controlling interests
1,083,231
1,327,824
1,140,792
1,388,835
5,421,511
5,422,032
5,421,511
5,422,032
Basic and diluted earnings per share - R$ (*)
0.1998
0.2449
0.1998
0.2449
From continuing operations:
Basic and diluted earnings per share - R$ (*)
0.1998
0.2449
0.1968
0.2539
0.0030
(0.0090)
Total number of shares - thousand (*)
From discontinued operations:
Basic and diluted earnings (loss) per share - R$ (*)
156
VOTORANTIM CIMENTOS
Statement of Comprehensive Income
Parent company
Consolidated
2014
2013
2014
2013
1,083,231
1,327,824
1,140,792
1,388,835
(1,396)
(7,361)
(21,926)
17,216
(336,912)
(563,681)
(336,912)
(563,681)
Other comprehensive income (loss) net of taxes, all of which
can be reclassified to statement of income
Interest in other comprehensive income of investees
Hedge accounting of net investments abroad
Realization of other comprehensive income
on disposal of investments in VILA
(31,045)
(31,045)
Realization of other comprehensive income
on disposal of investments
(15,720)
(15,720)
Currency translation of investees located abroad
425,028
665,051
444,351
660,475
86,720
47,244
85,513
67,245
Other comprehensive income (loss) net of taxes, all of which cannot be
reclassified to statement of income
Remeasurements of retirement benefits
Other comprehensive income (loss) for the year, net of taxes
Total comprehensive income for the year
(18,561)
42,207
(18,561)
42,207
68,159
89,451
66,952
109,452
1,151,390
1,417,275
1,207,744
1,498,287
1,191,523
1,547,144
16,221
(48,857)
1,207,744
1,498,287
1,151,390
1,417,275
56,354
81,012
1,207,744
1,498,287
Comprehensive income (loss) attributable to the owners of the parent
Continuing operations
1,151,390
1,417,275
Discontined operations
1,151,390
1,417,275
Comprehensive income (loss) attributable to
Comprehensive income (loss) attributable to the owners
of the parent
Comprehensive income (loss) attributable to
non-controlling interests
157
Statement of changes in equity
At January 1, 2013
Capital
Tax incentive
reserve
Legal
2,746,024
544,441
353,070
Other comprehensive income for the year
Total contributions by and distributions to stockholders
Decrease in non-controlling interest Macau
Increase in non-controlling interest Artigas
Increase in non-controlling interest Antequera
Capital reduction - partial spin-off of assets
(46,881)
Acquisition of non-controlling interest VCNNE
Capital increase
32,232
Reversal of lapsed unclaimed dividends
Allocation of net income
207,982
Tax incentive reserve
66,391
Legal reserve
Dividends approved (R$ 0.17 per share)
Profit retention
(14,649)
207,982
66,391
At December 31, 2013
2,731,375
752,423
419,461
158
VOTORANTIM CIMENTOS
attributable to owners of the parent
revenue reserves
Profit retention
Retained
earnings
436,711
Cumulative other
comprehensive
income
Total
Non-controlling
interests
Total
stockholders’
equity
577,725
4,657,971
252,279
4,910,250
1,327,824
61,011
1,388,835
89,451
89,451
20,001
109,452
89,451
1,417,275
81,012
1,498,287
(9,600)
(27,900)
(37,500)
224,795
224,795
6,120
6,120
1,327,824
1,327,824
(9,600)
(46,881)
(52,670)
(52,670)
62,027
(46,881)
(83,828)
(136,498)
32,232
32,232
62,027
62,027
(900,000)
(900,000)
(207,982)
(66,391)
(900,000)
153,451
(153,451)
153,208
(1,327,824)
589,919
667,176
(914,892)
119,187
(795,705)
5,160,354
452,478
5,612,832
159
Statement of changes in equity
At January 1, 2014
Capital
Tax incentive
reserve
Legal
2,731,375
752,423
419,461
Other comprehensive income for the year
Acquisition of non-controlling interest VCNNE
Increase in non-controlling interest Yacuces
Increase in non-controlling interest Itacamba
Capital reduction - partial spin-off of assets
(500)
Reclassification from non-controlling interests to revenue reserve
Allocation of net income
200,614
Tax incentive reserve
54,162
Legal reserve
Dividends approved (R$ 0,09 per share)
Interest on stockholders' equity (R$ 0.03 per share)
Profit retention
At December 31, 2014
160
(500)
200,614
54,162
2,730,875
953,037
473,623
VOTORANTIM CIMENTOS
attributable to owners of the parent
revenue reserves
Profit retention
Retained
earnings
589,919
Cumulative other
comprehensive
income
Total
Non-controlling
interests
Total
stockholders’
equity
667,176
5,160,354
452,478
5,612,832
1,083,231
57,561
1,140,792
68,159
68,159
(1,207)
66,952
68,159
1,151,390
56,354
1,207,744
(38,206)
(100,102)
(138,308)
1,083,231
1,083,231
(38,206)
47,745
47,745
13,385
13,385
(500)
(42,774)
(500)
(42,774)
42,774
(116,722)
(360,722)
(69,467)
(149,000)
(149,000)
(200,614)
(54,162)
(244,000)
562,733
(562,733)
237,753
(1,083,231)
827,672
735,335
(430,189)
(149,000)
(591,202)
(65,665)
(656,867)
5,720,542
443,167
6,163,709
161
Cash Flow Statement
Parent company
Cash flow from operating activities
Profit before income tax and social contribution
Consolidated
2014
2013
2014
2013
1,166,635
1,651,071
1,346,867
2,023,600
16,221
(48,857)
Income (loss) from discontinued operations
Adjustments to reconcile net income to cash from operations
Depreciation, amortization and depletion
Impairment of advances to suppliers, property,
plant and equipment and intangible assets
Loss (gain) on sale of property, plant and equipament
and intangible assets
291,668
269,319
805,499
773,093
17,287
28,943
96,191
37,168
30,824
(6,897)
(31,258)
(20,478)
Realization of other comprehensive income on disposal
of investments
Loss (gain) on disposal of other investments
(31,045)
609
(596)
(31,045)
(1,446)
(1,853)
(34,904)
Gain on disposal of investments C+PA
(743,025)
(774,123)
(187,687)
(96,863)
Allowance for doubtful accounts
12,549
15,167
35,489
41,351
Provision for (reversal of) inventory losses
15,338
(3,501)
30,701
(16,257)
1,086,171
857,132
1,376,458
1,101,344
(3,768)
(6,336)
(2,325)
(9,823)
(75,857)
93,061
(125,938)
188,108
1,798,431
2,092,195
3,323,072
3,904,584
(286,925)
306,914
(147,034)
758,116
(22,579)
(51,675)
(88,699)
(139,480)
Inventory
36,780
(88,481)
(30,149)
(82,685)
75,936
(48,287)
85,141
(24,472)
Related parties
10,878
(56,500)
(27,436)
18,264
Other assets
39,905
(16,077)
(50,241)
(210,428)
Trade payables
21,080
(31,606)
311,596
46,929
Taxes payable
114,249
183,707
(49,428)
60,796
7,016
25,696
24,062
59,590
(1,977)
(4,338)
(44,466)
45,796
(188,596)
(274,861)
(69,887)
(434,211)
Cash provided by operations
1,604,198
2,036,687
3,236,531
4,002,799
Interest paid
(980,990)
(792,532)
(1,055,672)
(872,761)
(135,733)
(234,549)
1,869,690
2,895,489
Equity in the results of associates and joint ventures
(35,700)
Contingent consideration Reversal unrealized
Interest, indexation and exchange variations
Fair value adjustment of derivative instruments
Provision
Decrease (increase) in assets
Financial investments
Trade accounts receivable
Increase (decrease) in liabilities
Salaries and payroll charges
Advances from customers
Accounts payable and other liabilities
Premium paid on partial repurchase of bond
(147,301)
(175,436)
Income tax and social contribution paid
(1,060)
(28,626)
Net cash provided by operating activities
474,847
1,215,529
162
VOTORANTIM CIMENTOS
Parent company
Cash flow from investing activities
2014
2013
Consolidated
2014
91,034
Cash obtained from the acquisition of the subsidiary Artigas
(14,699)
Increase in interest in Bio Bio
Capital increase in investees
2013
(11,064)
(69,320)
(10,191)
(14,102)
Acquisition of equity investment in C+PA
(27,900)
Acquisition of equity investment in Cementos Artigas
(50,795)
Acquisition of equity investment in Cementos Avellaneda
(121,909)
(155,946)
Acquisition of equity investment in VCEAA
(155,946)
(12,728)
Acquisition of equity investment (net of cash obtained) in Antequera
(545,861)
(780,962)
(1,275,915)
(1,282,118)
Acquisitions of intangible assets
(1,152)
(2,116)
(64,475)
(20,848)
Proceeds from disposals of property, plant and equipment and
intangible assets
12,449
8,427
119,204
40,721
Acquisitions of property, plant and equipment
Proceeds from sales of non-current assets C+PA
60,200
Proceeds from investment disposal
112,600
Dividends received
Net cash used in investing activities
48,150
51,313
50,628
61,704
(497,478)
(948,604)
(1,180,749)
(1,334,786)
Parent company
Cash flow from financing activities
2014
2013
Consolidated
2014
(37,500)
Acquisition of non-controlling interest in Macau
New loans and financing
3,472,003
(2,840)
Payments of loans and financing
(2,671,371)
Related parties, net
Proceeds from capital reduction VCEAA
(63,178)
754,253
4,280,971
(346)
(3,074)
(3,095)
(681,836) (4,038,008)
(2,206,930)
655,749
(84,662)
(65,882)
52,294
(138,308)
Acquisition of non-controlling interest in VCNNE
Increase in non-controlling interest in Yacuces
47,745
Increase in non-controlling interest in Itacamba
13,385
(136,498)
(158,532)
Interest on capital
(150,880)
Dividends paid
(244,000)
1,435,420
15,887
Portion of capital contribution Voto IV
Capital increase in investees Voto IV
2013
(150,880)
(986,092)
(351,826)
(986,563)
163
Cash Flow Statement
CASH FLOW FROM FINANCING ACTIVITIES
Net cash (used in) provided by financing activities
Parent company
2014
2013
2014
2013
197,089
(258,272)
(424,657)
(1,948,754)
25,455
117,385
Effects of exchange rate changes on cash and cash
equivalents of foreign subsidiaries
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Consolidated
174,458
8,653
264,284
(388,051)
14,218
5,565
665,588
936,254
188,676
14,218
955,327
665,588
Principal non-cash transactions
Offsetting of dividends receivable from related parties (liabilities)
655,491
Capital reduction in investee VCNNE offsetting related parties
(liabilities)
1,421,333
Payment in kind of investments offsetting related parties (liabilities)
268,236
Payment of REFIS Art 33 da MP 651/14 with deferred tax on tax losses
17,290
Loans from FINAME for acquisition of property, plant and equipment
49,133
35,247
53,701
61,093
53,785
Disposal of investment in VILA
682,155
682,155
Acquisition of investee Voto IV
32,232
32,232
Statement of value added
Parent company
Consolidated
2014
2013
2014
2013
8,851,542
8,366,561
15,822,201
14,875,281
62,814
59,784
234,093
326,125
(15,167)
(35,489)
(41,351)
8,411,178 16,020,805
15,160,055
Revenue
Sales of products and services
Other operating income
Allowance for doubtful accounts
(12,549)
8,901,807
Inputs acquired from third parties
Raw materials and other production inputs
Materials, energy, oustourced services and other
Gross value added
164
(2,362,083)
(2,294,864)
(5,213,503)
(5,014,286)
(1,343,121)
(1,248,190)
(2,529,969)
(2,294,909)
(3,705,204) (3,543,054)
(7,743,472)
(7,309,195)
8,277,333
7,850,860
5,196,603
4,868,124
VOTORANTIM CIMENTOS
Parent company
Consolidated
2014
2013
2014
2013
(291,668)
(269,319)
(805,499)
(773,093)
4,904,935
4,598,805
7,471,834
7,077,767
Equity in the results of investees
743,025
805,168
187,687
127,908
Financial income and exchange gains
442,455
1,077,844
605,300
1,343,705
1,185,480
1,883,012
792,987
1,471,613
6,090,415
6,481,817
8,264,821
8,549,380
486,724
434,365
1,029,316
910,791
14,914
18,198
Depreciation, amortization and depletion
Net value added generated by the Company
Value added received through transfer
Total value added to distribute
Distribution of value added
Personnel and payroll charges
Direct remuneration
Pension plan
Social charges
266,201
237,974
385,651
350,102
Benefits
144,892
124,650
224,330
200,504
897,817
796,989
1,654,211
1,479,595
726,172
977,648
1,166,253
1,434,708
1,515,504
1,410,183
2,103,078
1,940,548
27,579
31,586
30,488
35,307
91,906
19,168
(9,493)
34,098
2,361,161
2,438,585
3,290,326
3,444,661
1,671,823
1,859,207
2,046,975
2,129,501
76,383
59,212
132,517
106,788
1,748,206
1,918,419
2,179,492
2,236,289
57,561
61,011
186,189
900,000
Taxes and contributions
Federal
State
Municipal
Deferred taxes
Third-party capital remuneration
Financial expenses and exchange losses
Rentals
Own capital remuneration
Non-controlling interests
Dividends
116,722
Interest on capital
149,000
Reinvested profits
817,509
900,000
149,000
427,824
Income (loss) from discontinued operations
Value added distributed
731,821
476,681
16,221
(48,857)
1,083,231
1,327,824
1,140,792
1,388,835
6,090,415
6,481,817
8,264,821
8,549,380
165
Report Production
Energy, Sustainability
and Safety Directorate
Director Responsible
Edvaldo Araújo Rabelo
General Coordination
Global Head for the Environment:
Patricia Monteiro Montenegro
Environment Team: Carolina
Moreira Meira, Alexandre Henrique
Takano, Janaina de Oliveira Barros,
Helena Kowarick Spiritus, Guilherme
Tanferri and Stefanie Palma.
Finance and Investor
Relations Directorate
Gabriela Woge, Wellington De Paula
Oliveira, Daniel Gonçalves da Silva
Fonseca and Thiago José Braga Lobato.
People & Management
Directorate
Global General Management
for Corporate Communication &
Brand Management
Malu Weber, Bruna Gomes and
Carolina Simonetti.
VC Contributors
Alexandre Henrique Takano, Alexandre Levantino Amaro, Alexandre
Paraiso Cari, Ana Carolina Marques
Correia, Ana Claudia Soares Martins Trittoni, Ana Paula de Medeiros
Carracedo, Ana Paula Santana dos
Santos, Barbara Almeida Souza, Bruna Bedim Batista, Bruna Elisabeth
de Moraes, Carolina Moreira Meira,
Daniel Gonçalves da Silva Fonseca,
Delma Luiza Trevisan Barcellos,
Dirlane Maria Albino, Dirley Antonio
Maia, Eduardo Ferreira Abrahão,
Eduardo Montenegro Bortoleto,
Elaine Bohme Pellacani, Fabio dos
Santos Sant Anna, Fernanda Teves de
Souza, Frederico Cruvinel, Gabriela
Woge, Giuliano Giordano, Guilherme
Tanferri, Helena Kowarick Spiritus,
Ian Yoshio Ohta Primo, Janaina de
Oliveira Barros, Katia Helena Ubal
de Rodrigues, Leandro Badi Taouil,
Luiz Humberto Fernandes, Maikon
Cristofer Melo, Malu Weber, María
Alejandra Repetto, Maria de Fatima
Peixoto Nascimento, Mario Pinto,
Martin Vroegh, Maurilo Rodrigues
Moura, Patrícia Vilhena Duarte,
Patricia Monteiro Montenegro, Paula
Vieira Fava, Ricardo Turra, Roberto
Akiau, Rogier Hans Hofman, Ruben
Plaza, Sandra Regina Gregório, Silvia
Maria Sotero, Silvia Regina Soares da
Silva Vieira, Stefanie Palma, Thiago
José Braga Lobato, Vanessa Wu Fernandes, Wagner Teixeira Florentino,
and Wellington De Paula Oliveira.
Credits
GRI Consulting and design
Report Sustentabilidade
Team: Pâmela Jabbour (project management
and relations), Karina Simão (GRI consulting),
Guilherme Falcão (graphic design) and Flavia
Ocaranza (layout).
Editing
Eduardo Dantas
Revision
Assertiva Produções Editoriais
English translation
Richard Wightwick
Photography
Leonardo Rodrigues and Votorantim Cimentos
Image Bank.
Infographic
The Infographics Company – Business Model
pages 5 and 6.
Cássio Bittencourt – pages 22 and 23
Typography
Fedra Sans, by Peter Biľak, 2001.

Integrated report 2014

Transcription

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