Integrated report 2012

Transcription

Integrated Report 2012
Integrated Report 2012
Summary
06.
Management Letter
90.
Vision of the Future and Trends
08.
Highlights of 2012
94.
About the Report
12.
Market Context
96.
Audit Statement
16.
Business Overview
97.
40.
Our Identity
48.
86.
98.
Correlations with the UN Global
Compact Principles
Assurance Report
Business Model
and Performance
102. GRI Indices / Indicators
Risk Management
141. Financial Statements
150. Report Production
How to Read this Report
GRI
3.4,3.10,
3.11
We present the first Report of Votorantim Cimentos (VC).
The report also contains the detailed audited Financial
The aim of this document is to inform our stakeholders
Statements (FS) as well as the opinion of our external
and society in general about our economic, social
auditors and the declaration of assurance of independent
and environmental performance, as well as our
verification by an external entity. The Financial Statements
commitments, strategies and practices.
are also available at: http://www.vcimentos.com.br/
htms-ptb/Institucional/DemonstracoesFinanceiras.htm
In this Report, we have followed the guidelines of the
Global Reporting Initiative (GRI) and the Principles of the
Your opinion on this Report is important, enabling
UN Global Compact (Global Compact), both of which are
us to continually improve our reporting and
also reflected in our activities and initiatives in everyday life.
management processes. You may contact us by
e-mail at: relatoriointegrado2012@votorantim.grupo
The information contained in this report relates to
Votorantim Cimentos (VC) and, where appropriate, to our
This Report is also available on our website at:
parent company, Votorantim Industrial (VID). Here you will
http://vcimentos.com.br/htms-enu/Responsabilidade/
find information about our operations, business, results and
Ambiental.htm
risk management.
You also can download the portuguese version at:
http://vcimentos.com.br/htms-ptb/Responsabilidade/
relatorioSustentabilidade.htm
Guide to
References
GRI
GRI
Indicator
UN Global
Compact
Principle
Material
Issue
GRI
1.1,1.2,
2.9, 3.11
Management
Letter
In Brazil, in 2012, the Cuiabá (MT) cement unit came into
operation and the mills in Laranjeiras (SE) and Rio Branco
do Sul (PR) were expanded. Also four new Concrete Units
and two new Aggregates Units were opened. In South America,
we strengthened our presence through the acquisition of control
of Cementos Artigas, Uruguay, and increased participation
in Avellaneda, Argentina. With this process of organic growth
and acquisitions, Votorantim Cimentos ended the year with
a 45% increase in production capacity worldwide, reaching
52.2 million tons. In Brazil, our production capacity has
reached 30.1 million tons.
Our investments totaled more than R$ 1.5 billion in 2012,
including expansion, maintenance and health, safety and
environment projects. For the next three years, investments
of R$ 3.7 billion in expansion projects are scheduled.
In Brazil, we continue to believe in market growth through
investment in infrastructure and housing, two important
segments for the industry. The company is ready to meet
the demand for materials resulting from actions to encourage
construction, through “Minha Casa, Minha Vida”, greater
facilities for housing credit, and major infrastructure projects
aimed at the international sporting events scheduled for the
coming years, the World Cup 2014 and Olympics 2016.
We have worked to build, day by day, a work environment in
which people have opportunities for personal and professional
development, and feel engaged in the growth ambitions and
committed to the company’s future. Our human resource
management is based on guidelines for attracting, developing
and retaining talent, meritocracy, health and safety. Aiming
to spread international best practices internally, we disseminate
among employees a Global Anti-corruption Corporate Policy.
The year of 2012 was challenging for Votorantim Cimentos.
We maintain a very strong focus on the issues of occupational
Despite the global economic environment, we achieved solid
health and safety; unfortunately in 2012 we could not achieve
results, with strong growth and consolidation of our operations
the goal of zero fatalities. To reverse this situation, we are
in Brazil and abroad. In this sense, we highlight the completion
promoting deep internal reflection in relation to operational
of the integration process of the assets that belonged to
controls and a review of procedures and training. These efforts
the Portuguese cement producer Cimpor in seven countries,
are being adopted with the total commitment and mobilization
including new business in Europe, Africa and Asia. These
of senior leadership.
operations were of strategic importance for the company’s
6
international expansion - which made Votorantim Cimentos
In 2012, we initiated a review of the processes of our customer
one of the eighth largest producers in the sector worldwide.
service. Initially deployed as a pilot with clients in Brazil, this new
model of service aims to improve the relationship with customers
This 2012 Votorantim Cimentos Integrated Report received
through a better and more specialized system of selling products
the A + rating according to the methodology of the Global
and services.
Reporting Initiative (GRI). This is a recognition of our search
for the best practices in sustainability, which is aligned with our
In the environmental area, being aware of the impacts of our
business strategy. We have a model of consistent management
operations, we operate with a continued focus on mitigating
and a governance model that emphasizes transparency.
these impacts through the development of innovative solutions developed by the company itself or identified as a good market
In the coming years, we will follow the path of expansion and growth.
practices. The lessons learned from these solutions, besides
We are well prepared for the new challenges that lie ahead and we
mitigating the impacts, produce improvements in our operations.
hope to reach even loftier heights in relation to productive capacity,
competitiveness, technology and business position.
The first cycle of Cement Sustainability Initiative (CSI) goals
(2005-2012) to which we are committed has concluded
Finally, I want to express appreciation of the dedication
with good results. We have achieved, for example, the goal
and commitment of our employees, customers and business
of reducing CO2 emissions. In 2013, we will continue to enhance
partners, all of them fundamental for us to achieve the desired
our goals relating to key environmental issues involving
results and to maintain our strategy. We want to be one
our company, such as responsible use of fuel, energy and
of the best global companies in the basic materials sector
raw materials, water resources management, CO2 emissions
of the construction industry, backed by our aspiration of
and other pollutants, and biodiversity. These initiatives
becoming a leader in sustainability in our industry.
reinforce our commitment to make Votorantim Cimentos
a reference for the industry.
Concrete results achieved, include: the reduction of CO2 emissions
and particulate matter by 23.9% since 1990 and 30% since
2000, the renewal of the partnership with the Brazilian Society
of Speleology (SBE) and Atlantic Biosphere Reserve, with which
we act jointly on projects to preserve biodiversity, and other
actions described in this report.
Within the social scope, we support in partnership with
Instituto Votorantim development projects in the communities
where we operate, which is essential for the future of our
operations. An important mechanism in this regard is the
training of Community Councils, which are participatory
forums of society and government as well as a space for
engagement of community leaders. These Councils allow
the identification of local needs and help public departments
in defining plans to improve education, income generation and
Paulo Henrique de Oliveira Santos
work - in addition to being a communication channel for the
President of Votorantim Cimentos
permanent relationship between our operations and communities.
At the end of 2012, we recorded Community Councils operating
in nine cities.
Management Letter
Report for Votorantim Cimentos
7
Highlights
of 2012
EXPANSION AND
INTERNATIONALIZATION
WERE AREAS OF FOCUS
IN 2012
Itaú de Minas (MG) Plant
• We invested about R $ 1.2 billion in expansion projects,
• In relation to our commitments under the Cement
in the form of cement plants, grinding mills and concrete
Sustainability Initiative (CSI), we completed the first period
units. We initiated the operations of yet another cement
of targets (2005-2012). Now we will establish targets
plant, this time in Cuiabá (MT), with capacity to produce
for the second period of targets (2013-2020). The CSI
1.2 million tons per year. We also completed the expansion
is an international initiative sponsored by a group of the
of our cement plants in Laranjeiras (SE), Rio Branco do Sul
largest global producers of building materials that believe
(PR), Santa Helena and Salto de Pirapora (SP) and opened
in sustainable development. Details of our progress are
four new concrete units.
shown in the following table. We have participated
in this initiative since 1999.
• We concluded the asset swap relating to our
21.21% stake in Cimpor, a Portuguese cement
• Our social investments in the communities in which
company. As a result of this transaction, we now
we operate totaled R$ 9,173,000 from own funds
have assets in Spain, China, India, Turkey, Morocco
and R$ 836,000 from tax incentives.
and Tunisia, in addition to a limestone mine in
Peru, adding 16.3 million tons to our worldwide
production capacity.
• We ended 2012 with a 23.94% reduction in CO2
emissions, exceeding the target committed to under
the Cement Sustainability Initiative (CSI), which was
• Our global net income totaled R $ 9.5 billion,
to reduce CO2 emissions by 10%, in relation to the
9% more than in the previous year. In Brazil,
base year of 1990.
our net income totaled R $ 7.7 billion, 6% more
than in the previous year.
• We also reduced emissions of particulates, which
fell more than 30% in 2012, compared to the base
year of 2000.
Highlights of 2012
9
VC’s Performance versus Targets
Volunteer commitments under the Cement Sustainability Initiative (CSI),
of the World Business Council for Sustainable Development (WBCSD),
for the period 2005 to 2012
Climate Protection
Reduction of specific net emissions of CO2 (Base year 1990)
Targets for 2012
10%
Reduction of emissions
Reduction of specific emissions of particulate matter (Base year 2000)
5%
Reduction of specific NOx emissions (Base year 2000)
5%
Reduction of specific SOx emissions (Base year 2000)
5%
% of clinker produced with monitoring of major and minor emissions
100%
% of clinker produced with continuous monitoring of major emissions
100%
Local Impacts
% of mines that have recovery plans
80%
Safety
10
No. of fatalities for direct employees;
-
No. of fatalities for indirect employees
-
Frequency rate of accidents
-
2010
2011
2012
18.5%
20.7%
23.9%
Comments
The target was met several years ago.
We exceeded the target due to investment in equipment and management
24.7%
8.38%
30.8%
improvement programs in recent years.
Although we were in compliance with the applicable legislation we did not
achieve this target. However we have investments planned that are designed
15.1%
6.1%
-3.6%
to reduce these emissions.
We did not achieve our target but we have planned investments in measures
17.3%
1.1%
-11.3%
to reduce these emissions.
We were more rigorous with the CSI audit, using version 2 of the Guidelines
for Emissions Monitoring in the Cement Industry. Under the previous version VC
-
-
56.88%
68.2%
70.6%
74.0%
would have recorded a result above 80%.
We have developed a plan to install emissions monitoring equipment
In 2012, surveys were carried out at the Salto and Araçariguama plants.
-
-
49%
We have developed a plan to improve this indicator in 2013.
Despite the programs for education and training on the "Rules for Life"
0
0
2
initiative, we had 2 fatalities in 2012 - direct employees.
Despite the programs for education and training on the "Rules for Life"
initiative, we had 8 fatalities in 2012 - indirect employees - on-site (2)
2
2
8
and off-site (6).
Frequency rate of accidents with lost time (per 1 million man hours)
1.65
1.27
1.35
for direct employees
Highlights of 2012
11
Market
Context
IN 2012, GLOBAL
GROWTH WAS LESS
THAN EXPECTED
Rio Branco do Sul (PR) Plant
Global Market
The eurozone countries as a whole were in recession
In December 2011, the market expectations for 2012 were
The region’s biggest economy, Germany did not go into
grounded in cautious optimism. Despite the pessimistic title
recession but registered a mere 0.8% growth. At the other
of its report “Deceleration of Growth, Rising Risks”, published
extreme, China and India, although growing less than
in 2011, the International Monetary Fund forecast relatively
expected, ended the year with robust growth rates
strong rates of growth for global GDP for 2012 and 2013,
of 7.8% and 5.4%, respectively.
in 2012, with a fall in GDP of around 0.4% on average.
of 4.0% and 4.5% respectively.
Brazilian Market
In line with this forecast, growth was in fact strong
in the first quarter of 2012. Industrial production grew
by 7.5% worldwide and the future price index for metal
commodities, as measured by the Commodity Research
Bureau, increased by 10%. The establishment of an
agreement to resolve tax issues in the U.S. in the short
term, along with the formulation of measures to maintain
the Greek economy appeared to signal stability for the
months to come.
In Brazil, frustration with the economy’s poor performance
was greater than for most other countries. The year had
begun with a large dose of optimism and high prospects
for renewed growth due to a number of government
measures to stimulate growth, such as: tendering for
concessions in the infrastructure sector; reducing the prices
and taxes for electric power; introducing accelerated
depreciation for all capital goods; reducing interest rates
However, we saw a return to macroeconomic instability
and slowed global growth due to the following factors:
the impasse in Europe, which raised long-term interest
rates and destabilized important economies like Spain
and Italy; the electoral contest in the U.S. making
on FINAME / Bank of Economic and Social Development
(BNDES) funding; and reducing taxes on payrolls. However,
GDP ended the year at around R$ 4.4 trillion, only 0.9%
greater than the total recorded in 2011.
Even though Brazil’s economic performance in 2012
it impossible to negotiate a definitive solution to
soften the effects of the “fiscal cliff”; and the decision
of the Chinese government, fearful of generating new
imbalances, to reduce the level of stimulus that had
been introduced in 2009.
caused frustration in world markets with its growth of only
0.9%, the National Confederation of Industry (CNI)
announced positive results.
In 2012, industrial turnover rose in 12 of the 19 industry
A study released by the journal The Economist indicated
that the world economy grew by 3% in 2012, even
though it had been a difficult year. The U.S. economy,
the world’s largest, grew a little over 2%, confirming
a trend of gradual recovery that began in 2010, after
sectors surveyed by the CNI, in comparison with 2011. The
largest increase was recorded in the pulp and paper
industry, where the indicator rose 28.2% and, in
manufacturing, despite the adverse market conditions,
sales rose by 2.4%.
the global financial crisis of 2009.
Market Context
13
The real estate sector in Brazil suffered from the economic
slowdown. On the other hand, the growth in the cement market
remained above average, driven by the favorable dynamics of the
labor market. The country’s unemployment rate ended the year
2012 at 5.5%, according to the Monthly Employment Survey,
published by the Brazilian Institute of Geography and Statistics
Growth of the
cement market
was above average
in 2012
(IBGE). Also, according to the IBGE, this was the lowest annual
figure since records began in March 2002.
Government concessions and public-private partnerships for
the construction of roads, railways, ports and airports maintained
the boom in the infrastructure sector and this will continue to be
a growth factor for investments in the coming years. In 2012, the
BNDES approved R$ 133 billion in projects relating to infrastructure
and the total investment in the sector, according to estimates by
the Brazilian Association of Infrastructure and Basic Industry, reached
a level of 2.5% of GDP.
Sobradinho (DF) Plant
14
Construction Industry
We are affected by the cyclical nature of the construction industry,
In 2012, the growth of the cement market remained above
changes in supply and demand. The Brazilian construction market
average, driven by the favorable dynamics of the labor market.
has been booming and government policies aimed at encouraging
The sharp increase in the minimum wage in early 2012 and
infrastructure projects have had a significant positive effect on the
the confirmation of a record low rate of unemployment led
demand for our products and services. In 2012, the federal
to an average increase of 6% in national income, contributing
government launched the Program for Investment in Logistics, which
significantly to the sector’s performance.
includes a plan for the modernization and integration of transport
which is characterized by periods of growth and decline caused by
infrastructure, including roads, railways, ports and airports. Moreover,
According to preliminary data released by the National Association
construction has already begun on infrastructure projects related to
of the Cement Industry (SNIC), cement sales in the Brazilian market
the 2014 Football World Cup and the 2016 Olympic Games.
totaled 68.3 million tons in 2012, an increase of 6.9% over 2011.
At a global level, the trend towards increasing urbanization will also
Cement is a fundamental building material and is used at various
bring opportunities for the construction materials sector. According
stages throughout the construction cycle in residential, commercial
to the World Business Council for Sustainable Development (WBCSD),
and industrial buildings and infrastructure projects. In Brazil,
the world population in 2010 was 6 billion inhabitants, with around
cement is the most widely used building material and has been
3 billion (50%) living in urban areas. For 2050, WBSCD projects that
produced on an industrial scale since 1926.
the world population will reach 9 billion people, with about six billion
(70%) living in cities.
Market Context
15
Business Overview
WE ARE ONE OF THE 10
LARGEST GLOBAL CEMENT
COMPANIES AND THE
MARKET LEADER IN BRAZIL
In 2012, the Votorantim Group celebrated 94 years
of business activities. In almost a century of business
GRI
3.8
Overview of VID
operations we have built a large organization with
Votorantim Industrial (VID) is a privately-held,
a diverse range of businesses and opportunities and we
100% Brazilian-owned company. It is the
strive continually to conduct our activities in an ethical,
industrial arm of the Votorantim Group, one
responsible and conscientious manner.
of the largest business conglomerates in the
country. We have a diversified portfolio of
In our daily routine we seek to effectively integrate
businesses controlled by a centralized
sustainability issues into our strategy and business
management structure. We started our
operations, demonstrating the same energy and the
activities in 1918, in Brazil.
same direction that inspire us to achieve results,
whether of a financial or a non-financial nature.
Our business operating model is based
around a diversified portfolio of businesses
Thus, we have as the core goal of our strategy:
offering a wide range of products, services
and opportunities.
LONG-TERM GROWTH WITH RESPONSIBILITY.
VID’s industrial operations focus on basic
industry sectors, which are capital-intensive
and require large-scale production and
cutting-edge technology. We are constantly
in the process of expansion, always seeking
to obtain appropriate returns and to add
value to our relations with the market
The Votorantim
Group celebrated
94 years of business
activities in 2012
and with our stakeholders.
VID is headquartered in São Paulo, Brazil
and is present in other 21 countries: Argentina,
Australia, Austria, Belgium, Bolivia, Canada,
Chile, China, Colombia, Hungary, India,
Japan, Morocco, Peru, South Africa, Spain,
Switzerland, Tunisia, Turkey, The United
States, and Uruguay.
VID’s business divisions can be summarized
as follows:
Business Overview
17
VID’s BUSINESS
Business
Products / Services
Division
Aspiration
Votorantim
Cimentos
(VC)
Cement, concrete, aggregates (gravel and sand) and
complementary products such as: mortar, hydrated lime,
lime paint, blocks, tiles, white cement and agricultural lime.
Being among the best building materials companies
in the world, through vertical integration of business
and geographic diversification, using models that
ensure sustainable profitability.
Votorantim
Metais (VM)
Aluminum, zinc, nickel, copper, silver, metallic indium,
metallurgical coal, cobalt, cadmium, anhydrous sodium
sulfate, copper sulfate, zinc oxide, sulfuric acid, powdered
lime and mineral concentrates.
• Zinc: To be among the leading integrated lowcost producers and have a global presence.
• Nickel: To improve the competitiveness
of our operational assets and broaden
our base of mineral reserves.
• Aluminum: To be the market leader in primary aluminum,
downstream products and recycling in Brazil.
• Other metals: To evaluate opportunities and develop
or enhance exploration.
18
Votorantim
Siderurgia
(VS)
Long steel bars.
To be a leading player in the Latin American market for long
steel bars.
Votorantim
Energia (VE)
Company-owned electric power generation.
To contribute to increasing the competitiveness of the business
divisions, by ensuring the supply of electric power and natural
gas with competitive pricing and reduced risk.
Fibria
Pulp.
To maintain our position as the market leader and
be a preferred supplier to large customers.
Citrosuco
Orange juice (fresh and concentrate).
To maintain our position as the industry leader in orange juice.
Geographical distribution of the
operations / Commercial activity
Market focus
• To grow organically by increasing our production capacity, both by the
expansion of our existing facilities and by the opening of new plants.
• To increase the degree of internationalization of our business through
acquisitions and investments in increased capacity.
• Operations and performance in Brazil.
• Operations and performance overseas:
North America,South America, Europe,
Asia and Africa.
• To offer an increasingly diverse range of products and services, making
us a company specializing in basic construction materials.
• To improve processes.
• To strengthen the integrated production process.
• To ensure efficiency and offer quality products at competitive prices.
• Overseas: operating plants in Peru,
Colombia, the U.S. and China and global
commercial activities.
• To seek viable opportunities for the exploration of new mineral reserves and creation
of new products.
• To strengthen our operations in Peru.
• To increase the share of the steel business in VID’s portfolio.
• To develop new opportunities.
• Operation and activities in Latin America:
Colombia and Argentina.
• To improve customer relationships and loyalty.
• To integrate and coordinate all of VID’s company-owned
power generation operations.
• To ensure the supply of electric power and natural gas to VID, thereby
contributing to the increased competitiveness of the business divisions.
• To coordinate VID’s Energy Efficiency Program.
• To maintain our position as the world leader in the production of pulp
from eucalyptus.
• Operations in Brazil and worldwide
• To manage renewable and sustainable forests.
• To ensure access to timber for current operations and future growth.
• To maintain our position as the largest producer of orange juice
in the world.
• To strengthen our export-oriented profile.
• Overseas: operating facilities in the U.S.
and global commercial activities
• To strengthen our expertise along the entire production chain
and seek out new opportunities.
Business Overview
19
Products tranportation
Inputs used in cement
manufacturing
Mining
Cement plant
Products Distribution
Center
Products transportation
Customers and end users
Values of Votorantim Cimentos
Values of Votorantim
Cimentos
Customer Service Center
Votorantim cement
Training for
employees
Community
Mixers that carry
concrete Engemix
to customers
Factory of complementary
products such as screeds
and grouts
Strategy Votorantim Cimentos
Worldwide Presence
Hexagon with strategic pillars,
which are the basis of the
strategy of Votorantim
Household products,
such as crushed stones
in various particle sizes
GRI
2.1, 2.3, 2.4,
2.5, 2.6, 2.7,
3.8
Where We Operate
cement plants, three grinding mills, 65 concrete
Votorantim Cimentos (VC) is a privately held,
three lime plants and one clinker plant.
plants, 18 aggregate plants, one mortar plant,
100% Brazilian-owned company.
How We Do Business
We have units in virtually all states of Brazil,
and we operate in Argentina, Bolivia, Canada,
Chile, China, India, Morocco, Peru, Spain, Tunisia,
Turkey, Uruguay and the U.S. The company’s
headquarters are located in São Paulo (SP).
In Brazil, we have 16 cement plants, 11 grinding
mills, 110 concrete plants, 28 aggregate plants,
eight mortar plants, and one lime plant, all
strategically located near major consumer markets,
which ensures an efficient distribution system.
In North America, our subsidiary Votorantim
Cimentos North America (VCNA) operates plants
in both Canada and the United States. Overall
we have five cement plants, two grinding mills,
140 concrete plants and 34 aggregate plants.
In South America we operate through shares
in companies in Argentina, Bolivia, Chile, Peru
and Uruguay. In these countries we have five
22
GRI
2.8
Votorantim Cimentos (VC) is one of the top ten
cement producers in the world and the leading
company in the cement sector in Brazil.
In business since 1936, VC has a prominent position
among the businesses of Votorantim Industrial (VID).
Our business portfolio consists of four major
product lines:
• Cement
• Concrete
• Aggregates
• Complementary Products
We employ a total of 12,571 people
in our operations.
Votorantim Cimento’s organizational chart is as follows:
President
Paulo Henrique de O. Santos
Finance
Lorival Luz Júnior
Risks,
Compliance and
Internal Audit
Corporate
Development
--
Sidney Catania
Technical
Edvaldo Araújo
Rabelo
Brazil
Walter Dissinger
North America
Marty Fallon
Europe, Africa
and Asia
Erik Madsen
South America
and Equity
Investments
Luiz Alberto Santos
Human and
Organizational
Development
(HOD)
Claudia Elisa
Soares
Legal
Ricardo Marcelo
Cavallo
Business Overview
23
GRI
2.8
Strategic Positioning
leadership. By increasing our production of cement,
concrete, aggregates and mortar, we are preparing
By 2020, our goal is to be one of the largest
to meet the forecast increased demand for the
building materials companies in the world, vertically
coming years, thereby reaffirming our commitment
integrated and geographically diversified, and
to the development of the countries where we
observing standards that ensure a sustainable level
are present.
of profitability.
Our business strategy is focused on:
• Increased production capacity.
GRI
2.2,2.3,
2.7,3.6,
3.8
• Vertical integration through growth
in aggregates, concrete, mortar and
other complementary products.
GRI
2.9
bags and 31% in bulk, a situation that has been
and our range of products and services, and
changing gradually.
to keep a tight control on costs.
demands of the sector and with a presence in a
large part of Brazil as well as in overseas markets.
Correspondingly, we invest not only in increasing
the production of cement, but also in new plants
making concrete, aggregate and complementary
products. We grow organically from expansion
projects and, overseas, also through acquisitions.
We strive to grow in the short, medium and
long terms, and with responsibility. We operate
in an industry that has a high environmental
impact, but we are committed - through policies,
investments and partnerships - to reducing
the negative effects of our activities.
We are focused on a positive outlook for
infrastructure projects and housing in Brazil
and continue to invest in our sector, with the
opening of and/or expansion of plants to increase
production capacity and thus sustain our growth
in the industry and maintain our position of market
24
We ended 2012 with a production volume of 30.1
In Brazil today, 69% of our cement is sold in
We strive constantly to increase our efficiency
with products and services to meet the various
Cement continues to be our primary business.
worldwide, our capacity totaled 52.2 million tons.
• Customers.
company focused on basic construction materials,
Cement: Flagship Product
million tons of cement in Brazil. Considering all units
• Internationalization.
Increasingly, we are positioning ourselves as a
Business Segments
GRI
2.9
• Internationalization
VC’s process of internationalization accelerated
in 2012. In addition to our operations in Canada
and the United States, through VCNA (VC North
America), we now have assets in Spain, China,
India, Turkey, Morocco, and Tunisia and a limestone
mine in Peru, all thanks to the asset swap relating
to our 21.21% stake in Cimpor.
This transaction added 16.3 million tons to our
global production capacity, which increased from
34 million to 52.2 million tons per year. Votorantim
became a shareholder in Cimpor in 2010.
With this swap transaction, we have incorporated
13 cement plants, one clinker plant, eight grinding
mills, 78 concrete plants, 22 aggregate plants, five
mortar plants and one hydrated limestone plant.
We are also growing in South America, and the
highlights in 2012, were as follows:
• We acquired 10.61% of the share capital in
Cementos Avellaneda SA, in Argentina, and now
own 49% of the total capital of the company.
• We acquired 12.61% of the capital in Cementos
Artigas SA, Uruguay, and now own 51% of the
total capital of the company.
• Also in South America, we operate in Chile
and Bolivia as well. We have a small grinding
mill in Bolivia, where we are starting a project
to implement a full factory.
GRI
2.9
• Expansion in Brazil
As a leader in the Brazilian cement market,
we now have 27 units (plants and mills) in Brazil.
Our expansion process started in 2007, and had
the objective of increasing our presence in Brazil,
as well as enabling us to work with spare capacity
so that we can supply our customers, even
during times of peak consumption.
We are improving our distribution network
in order to meet the growing demand in the
Brazilian market. We operate 52 distribution
centers and 11 terminals throughout the country.
In 2011 and 2012, we invested in new plants
and the expansion of existing plants in Brazil,
such as Salto de Pirapora (SP), Laranjeiras (SE)
and Rio Branco do Sul (PR). We have already
started operating our plant in Cuiabá (MT).
Construction projects for new plants are
underway in Primavera (PA) and Edealina (GO),
as is the expansion of the Santa Helena (SP) plant.
Business Overview
25
Concrete: Strategic Importance
With 110 concrete centers distributed across Brazil, our concrete
business, operating under the brand Engemix, plays a strategic role
in VC’s business portfolio, especially in positioning the company
as a service provider.
Concrete adds an important service to our core product of cement.
In this segment, we operate very close to the consumer market.
The growth in consumption of concrete is estimated at 8% per year.
With an eye on this growing market, our concrete business,
which was concentrated in the State of São Paulo, began a steady
process of geographic diversification in 2012.
The northeast of Brazil, which has a growth rate higher than
the rest of the country, is a priority in this strategy. We have
inaugurated concrete centers in São Luís (MA), Natal (RN),
Recife (PE) and Lauro de Freitas (BA).
We also supply concrete for major projects such as new football
stadiums: Corinthians (SP), Pernambuco Arena (PE); Castelão (CE);
and Grêmio (RS). We are also a supplier for the subway expansion
in São Paulo and construction works for Petrobras. Besides
diversifying geographically to increase market share, Engemix’s
strategy is based on excellence in services and tight cost control
to gain competitiveness.
Engemix Cement Truck
26
Several programs have been created in our efforts to increase
the use of recycled materials. One prominent initiative is the
Zero Loss Program (Sustainable Engemix), which has enabled the
recycled of up to 80% of the waste generated in the production
of concrete back into the production process. The program was
made possible due to the development of an additive which
increased the useful life of concrete from two and a half hours
to 48 hours, thus reducing losses.
In 2013, we will inaugurate new concrete centers in Brazil.
The ready mix market in the State of Florida, United States,
where our subsidiary Prestige operates, experienced a substantial
decline during 2007-2011 but began making a strong recovery
in the last quarter of 2012. This growth is expected to continue,
with the total market projected to double over the next four years.
In order to better serve our customers in the state as well
as to provide support to the VC North America (VCNA) cement
business, Prestige has expanded its footprint in central Florida
over the last 2-3 years and now operates 14 plants Furthermore,
Prestige has moved from being an organization focused almost
exclusively on the residential segment of the market to a “full
service” provider supplying many infrastructure and commercial
projects. This diversification has allowed Prestige to increase market
share, mitigate the impact of the market slowdown and position
itself to take full advantage of the projected recovery.
The vertical integration of Prairie Ready-Mix, Prairie Aggregates
In Canada VC North America (VCNA) operates its ready-mix concrete
and St. Mary’s Cement allows VC North America (VCNA) to maintain
business through Canada Building Materials (CBM), with 32 concrete
a strong market position in the Great Lakes region, in the Midwest
centers across the province of Ontario, one concrete center in the
of the United States. Prairie operates 57 permanent and 12 mobile
province of Quebec and 4 portable plants that can be mobilized for
concrete production plants in the State of Illinois, Indiana and
specific high volume concrete applications. CBM plays a strategic role
Wisconsin. It also manages 18 plants in the State of Michigan
in VC North America’s business portfolio, specifically in positioning
through its 50:50 joint venture, Superior Materials.
the company as a service provider.
As with most U.S. businesses in the region, Prairie experienced
Over the past few years CBM has been focused on maintaining
a severe economic downturn starting in 2008, reducing its production
market share within a highly vertically integrated and independent
by over 50% while reorganizing to face the challenging business
concrete environment.
climate. Throughout this downturn, Prairie maintained its leadership
position by providing products and expertise for major projects in the
The economy has been sustained through major infrastructure
region, including the Trump Tower in Chicago, the Aqua at Lakeshore
projects such as subways, highways, wind farms, hospitals,
East residential high rise in Chicago, Cook Hall at Indiana University,
and schools, with CBM playing an active role in the supply chain.
the Milwaukee Deep Tunnel, the Federal Express World Center
Further, the residential high-rise condominium sector has been
in Bedford Park, Illinois and others.
robust over the last ten years in Toronto (Canada’s largest city)
and has provided much of the economic growth and stability
in the province.
The growth outlook for Prairie remains positive as market share
has been recovered and the economy is improving, with increasing
CBM is present at strategic locations along Highway 401, the main
cement consumption in the Midwest.
thoroughfare across the province of Ontario, where the majority
VC North America (VCNA) has implemented numerous sustainable
of the province’s cities and population exists, and where growth
business practices designed to achieve and maintain an industry
is expected to continue. Notable projects to supply concrete include,
leadership position in Environmental and Sustainable Stewardship:
besides those already mentioned, the sports facilities for the next
Pan American Games in 2015, and major high-rise office buildings -
• Invested in projects for improving environmental performance;
for example the Bay Adelaide Center. CBM continues to seek
• Developed an Environmental Management System (EMS)
strategic opportunities to expand geographically and increase
its market share.
for implementation in all Prairie ready-mix facilities;
• Established a pilot program for concrete recycling operations
using on-site return:
Much of CBM’s success has come from its value added program
• Provided for 100% recycling of all returned concrete;
under the brand name MAXIMIZERS. These differentiated products
• Prevented landfill of approximately 5,000 m3
increase the performance of concrete to achieve the stipulated
of returned concrete;
• Partnered with O’Hare Airport to provide recycled concrete
specifications or meet special demands, such as high strength
concrete and high flow capacity. As well as marketing high
in place of traditional concrete as part of the O’Hare pilot
performance products, CBM remains focused on the tight
program for sustainable airport expansion;
control of variable and fixed costs in a competitive market.
• Established numerous “Green Prairie” promotions
and demonstrations for pervious concrete and
roller-compacted concrete;
• Established the Innovative Concrete Solutions Summit
to demonstrate sustainable solutions in partnership with
BASF Chemicals;
• Established a pilot program for Prairie Green Fleet to introduce
compressed natural gas (CNG) powered ready-mix trucks
to the fleet in 2014.
Business Overview
27
Araçariquama (SP) Plant
Aggregate Business is Reorganized to Regrow
GRI
2.2
In Brazil, after strong growth, at a rate
of about 30% per year between 2007 and
2011, the aggregates (crushed rock and sand)
business underwent a year of reorganization
in 2012. 15 acquisitions were made in a three-year
period, which changed the geographical profile
of the business: today, there are 28 units in
operation in 15 Brazilian states and the
Federal District.
With about a 2% market share VC is a national
leader in the aggregates market, which
is estimated to be around 750 million tons p.a.
There is good potential for growth, so we decided
to consolidate what had been done so far by
standardizing processes, adjusting the structure
and documentation, and implementing VC’s
guidelines for environmental and health and
safety procedures.
All of this was achieved without adversely affecting
the business, which totaled 15 million tons sold
in 2012. One of the projects was the integration
of all of the production units into our Systems,
Platicapnos and Products (SAP) data processing
system, which facilitated the process control and
operational management in these units. As part
of the reorganization, we created four regional
businesses. The aggregates business has plans
to grow further, whether by acquisitions or by
building its own units, reinforcing our strategy
to make VC a company focused on basic
construction materials and services.
Aggregate
Business was
reorganized and
consolidated
in 2012
28
In the US market, our Prairie Aggregates
Prairie currently operates 13 sites and will
operations were significantly impacted by the
add a new limestone quarry. This will enhance
significant economic downturn between 2008
its strategic growth plan with expansion into
and 2012, when the industry operated at 60%
a new region.
of capacity utilization in Indiana and Illinois.
The economic environment is now improving
In Canada, VCNA’s aggregates operations are
but remains challenging.
conducted by Canada Building Materials (CBM).
In 2012 the company continued to grow the
With respect to our management of environmental
business profitability to record levels. This was
and occupational safety issues, the company’s
achieved through growth at greenfield sites
operations had zero environmental violations in
as well as maximization of profitability at existing
2012 and completed five years without accidents.
sites through the management of the product mix.
Community and employee engagement was
Over the past 6-10 years considerable investment
enhanced through school tours, open houses
was made in several small acquisitions as well
and fundraisers for local charities.
as investment in licensing of greenfield pits
and quarries.
Prairie has increased its participation in the recycled
materials market through targeted sales initiatives
In 2012 a considerable growth in volume was
and communication of the benefits of recycled
achieved at the newly licensed Orillia quarry and
products to its customers and communities.
a new quarry license was granted for the new
The company continues to be a leader in clean
Osprey quarry. Both of these quarries are able to
construction and demolition debris management.
supply the Greater Toronto Area with high quality
These inert soils are used to fill in decommissioned
concrete and asphalt aggregates.
quarries and pits, thus maximizing and enhancing
the final reclamation and use of this land.
Business Overview
29
Barueri (SP) Plant
GRI
2.2
The Success of Our Complementary
Products Business
The restructuring and performance of the
Founded in 2010, the area of Complementary
for “Outstanding Performance of the Year”
Products of Votorantim Cimentos brings together
within VID. In two years, even without direct
six different businesses, with management focused
investments, doubled production capacity
on well-defined strategies:
and sales. It has eight mortar plants, two
Complementary Products business proved
to be a success story, and it won the award
lime plants and two limestone plants.
• Mortar for construction, in large volumes
(Matrix brand).
In 2012, the sales of the Complementary Products
• Adhesive mortars (Votomassa brand).
business were around R$ 550 million, with plans
• Concrete blocks plant.
to reach sales of R$ 1 billion by 2016 and its cash
• Sales of white cement (imported).
flow for 2020 is forecast to be R$ 400 million.
• Production and marketing of lime.
• Production of limestone for agriculture.
The Complementary Products business team,
with an average age of 35 years, was formed
The six businesses operate independently,
from internal resources. The working atmosphere
with a coordinated support structure consisting
is very positive: in 2011, its first full year of activities,
of Human Resources, Finance, Research and
its score on the Satisfaction Index in the Employee
Development, Projects and Strategy Management.
Climate Survey was 74%, increasing to 80%
in 2012.
30
Improvements in processes and costs
The purpose of the Optimal Cost Structure Program, which has been implemented in the cement plants in Brazil, was to improve
the performance and operational cost of these plants.
To identify opportunities for improvement we undertook technical visits at all the units. The activities included the training
of employees in the management of projects and improvement processes, along with the appointment of a person responsible
for the execution of projects in each unit.
GRI
2.2,2.8
Our Products
In North America, Europe, Africa and Asia,
In Brazil we sell more than 40 products, including
CBM, Hutton Transport, Prairie, Prestige,
cement, concrete, aggregates (crushed stone and
Cementos Cosmos, Pulmor, AsmentTemara,
sand) and complementary products such as mortar,
Jbel Oust, Ybitas and Kamal.
our main brands are: St. Marys, Suwannee,
hydrated lime, lime paint, blocks, tiles, white
In everyday life, our products are found in many
cement and agricultural lime.
applications in buildings and general infrastructure
Our products are marketed under the following
works: columns, floors, walls, facades, tiles, water
brands: Votoran, Itaú, Poty, Tocantins, Aratu,
tanks, floors, and in the case of agriculture, agricultural
Votomassa, Matrix, Engemix, Cimento Ribeirao,
lime - and many others items commonly found
Pavilit, Normalit and Blocolit.
ineveryday life.
In 2013 we will start to analyze the life-cycle
of our products.
GRI
3.5,4.14,
4.15,4.16,
4.17
Our Priority Subjects
VC seeks to grow in the basic construction materials market, while generating sustainable results in Brazil and overseas.
To this end, we have adopted 12 material issues as priorities, which are:
Votorantim Cimentos Material Issues
1. Responsible Use of Fuel and Energy
UN Global Compact Principles 7, 8 and 9
CSI Themes 1 and 2
2. Responsible Use of Raw Materials
CSI Themes 1, 2 and 7
3. Water Resources Management
UN Global Compact Principles 7 and 8
CSI Theme 9
4. Solid Waste
5. Emissions of CO2 and other Pollutants
CSI Themes 1 and 4
UN Global Compact Principles 1, 2, 4, 5 and 8
CSI Theme 5
6. Health and Safety
CSI Theme 3
7. Local Development
8. Biodiversity
CSI Theme 5
9. Sustainable and Inclusive Construction
CSI Theme 8
CSI Theme 10
10. Supplier Management
UN Compact Global Principles 4, 5, 7 and 8
11. Sustainability in Human and Organizational Development (HOD)
UN Global Compact Principles 6
12. Green Rules Priorities
Business Overview
31
The preparatory work to define these themes was undertaken in 2012 through internal discussions. It was based on the process
established by VC for defining its sustainability strategy, which was established with the support of external specialists.
The discussion of our sustainability strategy covered a wide range of issues, as shown in the following figure:
OVERVIEW OF VC PROJECT – CURRENT SITUATION PROJECT ONDE ESTAMOS?
Externalities of VC’s
economic sector
Sustainability:
Market Study
(customers and
competitors)
Sustainability of VC
(positioning, products
/solutions and
management system)
Selection of material
sustainability issues for
Current demands
the sector and analysis
and trends concerning
of societal pressures
the adoption of
related to the issues
sustainability criteria
(financial system,
by customers and
sector players and
the positioning of
organized civil society)
competitors in relation
to such demands
Aspects of sustainabilty
which relate to the
company’s management
system considering:
identity, long-term
vision, positioning,
products,
communication,
education, metrics,
stakeholder relations,
processes and policies.
The results of the analysis of these factors led to the selection of the priority material issues
to be included in VC’s strategic planning process as regards sustainability.
32
To define our material issues, we took into
The overall conclusion was that the material issues
consideration the themes of the Cement Sustainability
already being prioritized should be maintained. Other
Initiative (CSI), for which we had set goals in 2005,
issues surfaced, such as: certain aspects of legislation
and which already included many of the issues
and legal issues, operating license management,
identified. The CSI key issues are as follows: climate
mechanisms for identifying and resolving grievances
protection, alternative fuels and co-processing,
and conflicts, etc. The new issues will be analyzed in
health and safety, air emissions, biodiversity, local
the strategic planning process for 2013.
development, communication, sustainable concrete,
water, and supply chains. Progress on these issues
It should be noted that VC’s material issues are aligned
is achieved though work-groups and task forces (TFs).
to the material issues of our parent company,
Furthermore, in 2012, the validation process for our
Votorantim Industrial (VID). For more details on the
already-identified material issues and the possible
VID’s material issues, see the Votorantim Industrial
identification of new issues advanced to a higher
Report - www.votorantim.com/relatorio.
level with the adoption of stakeholder consultations,
which we believe will contribute to the overall
To achieve the objectives outlined in the key areas,
improvement of the organization.
we will have management practices that encourage
With the support of a specialized consultancy
on: achieving operational excellence throughout the
(BSD Consulting) we defined the scope of our
production chain; constituting a competitive setting
first consultation with external stakeholders at
for business, with a management system that can be
the corporate level. This consultation, carried out
replicated in the new units built or incorporated as part
by means of interviews, took place at the end of
of the expansion plan; and having a commitment
2011 and during the first half of 2012. The objective
to environmental responsibility.
our teams to act as owners of the business, focusing
was to collect information and opinions that would
help us to assess the challenges and commitments
That is how we will achieve our goal of satisfying
affecting existing priority issues as well as to identify
our customers and growing responsibly.
possible adjustments and new material issues.
This first consultation involved representatives
of several of Votorantim’s external stakeholder groups:
institutional investors, experts, the financial sector,
media, governments, public entities, NGOs and trade
associations. In all, 28 stakeholder representatives were
interviewed and internally, and 23 directors and general
managers were interviewed or consulted.
These consultations will now take place every two years,
with the above-mentioned stakeholder groups, so as to
obtain valid information and references to enable us to
continually improve our operations and activities.
VC’s Strategic Hexagon
Business Overview
33
Ratings
The ratings for the Votorantim Group are established at the
corporate level, i.e. based on the level of financial and operational
management of Votorantim Industrial (VID). VID has obtained an
“investment grade” rating from three of the most important global
rating agencies, as shown in the below. This enables it, for example,
to have access to more attractive interest rates in long-term
financing, such as those provided by the National Bank
of Economic and Social Development (BNDES).
VID is classified as “investment grade” by three of the most
important global rating agencies, as follows:
Rating Agency
Rating
Standard & Poor’s
BBB
Moody’s
Baa3
Fitch Ratings
BBB
In the case of Votorantim Cimentos (VC), Fitch Ratings
has attributed a rating of “BBB-” to a specific issue of
US$ 500 million of bonds (a re-issue under an existing
bond program), maturing on April 5, 2041.
Votorantim Industrial has
achieved an investment
grade rating
34
Certifications
We have obtained the following certifications:
Certifications
Standard
Description
No. of units Certified
ISO 9001
Certification of Quality Management Systems.
23
ISO 14001
Environmental management.
10
ISO 50001
Attests to excellence in energy management.
1
SA 8000
Social responsibility.
1
OHSAS 18001
Certification in occupational health
6
and safety management.
Certification of the fact that the product does
not emit any toxic substances that could affect
Greenguard
indoor air quality or people’s health, according
Votomassa product line.
to guidelines set by the U.S. Federal
Toxicology Program.
ECO
Energy Star
Certification of eco-efficient concrete products by the
ReadyMixed Concrete Association of Ontario, Canada.
Certification of energy-efficient products by the
Environmental Protection Agency of the United States.
25
1
Efficiency recognized
The Votorantim Cimentos plant in Rio Branco do Sul (PR), in the metropolitan region of Curitiba (PR), was the first cement
company in the Americas to achieve an Integrated Certification award, which included: ISO 9001 - Quality; OHSAS 18001 Occupational Health and Safety; ISO 14001 - Environment; and SA 8000 - Social Responsibility.
In VC North America (VCNA), the Bowmanville plant in Canada was the first plant in North America to obtain the ISO 50001
certification, which attests to the efficiency of its energy management system.
Business Overview
35
GRI
4.12,4.13
Voluntary Commitments
With respect to the period of CSI goals, beginning
We adhere to the following voluntary commitments:
be completed by 2020 which will be published at
in 2013, we are designing a dashboard of goals to
the end of 2013.
Cement Sustainability Initiative (CSI)
The initiative for sustainable cement is a program,
Other Commitments
coordinated by the World Business Council for
Business Pact - “Na Mão Certa (In the Right
Sustainable Development (WBCSD) and adopted
Direction)” Program: VC Votorantim Cimentos
by the largest producers of construction materials
is a signatory to the above-mentioned “Business Pact”,
in the world, which promotes the exchange
which is a joint initiative of Childhood Brazil and the
of experiences between its participants and the
Ethos Institute of Business and Social Responsibility,
dissemination of best practices. The participating
with technical support from the International Labour
organizations make voluntary commitments and
Organization (ILO). The Business Pact aims to promote
targets relating to social and environmental issues.
the fight against the sexual exploitation of children
More information at: http://www.wbcsdcement.org/
and adolescents on Brazilian highways by including
this issue in the social responsibility strategies
By participating in this initiative, VC seeks
of the participating companies. More information
to consolidate its position as the best cement
at: http://www.namaocerta.org.br
company in Brazil, which requires the adoption
of best environmental and social practices.
It is important to note that, since 2011, Votorantim
The cement sector was the first to propose
Industrial has been a signatory of the UN Global
structured action in this direction, engaging
Compact and this commitment extends to all of
the global cement industry in a commitment
its business divisions, including VC. The UN Global
to sustainable development. Climate change
Compact is an initiative of the United Nations (UN)
has been a major focus of attention, since cement
the aim of which is to mobilize the business
production accounts for 5% of the global industrial
community to adopt certain internationally accepted
emissions of Greenhouse Gases (GHGs).
fundamental values and practices in relation
to human rights, labor relations, the environment
Votorantim Cimentos formally joined the CSI
and the fight against corruption.More information
in 1999. As a result we undertook, among other
at: http://www.unglobalcompact.org/
objectives, to implement the guidelines proposed
by the CSI task forces and to adhere to the
At an institutional level we are permanently in contact
commitments established in the Agenda for Action
with the governments of the municipalities in the
(2002). We set goals, measured by the CSI Charter
locations in which we operate, and participate in
indicators, for the period 2005-2012, and with the
discussions about public policy and support for the
ending of this period we are now starting the second
development of local communities. We also participate
period of goals (2013-2020).
in forums at various levels of government, including
ministries and other public bodies, to discuss and
For details of our progress in the implementation of
our goals, see the table in the Highlights for 2012
section of this Report.
36
present our needs and / or proposals for regulations.
GRI
SO7
Cement Cartel
EIn November 2011, the Secretariat of
Economic Law (SDE) of the Ministry of Justice
issued its opinion on the investigation, which
began in 2006, into an alleged cartel in the
cement sector. This opinion was delivered
to the Administrative Council for Economic
Defense (CADE), which is conducting the
investigation, for its appreciation. In its opinion
the SDE accused certain companies and
executives of having committed acts in
violation of Brazil’s competition laws, as
follows: Holcim do Brasil S.A., Votorantim
Cimentos S.A., Camargo Corrêa Cimentos S.A.,
Cimpor Cimentos do Brasil Ltda., Itabira Agro
Industrial S.A., Companhia de Cimento Itambé,
Associação Brasileira das Empresas de Serviços
de Concretagem (ABESC), Associação Brasileira
de Cimento Portland (ABCP), Sindicato
Nacional da Indústria do Cimento (SNIC),
and six executives working in the sector.
The Votorantim Group affirms that it has
always acted in accordance with the law
and does not endorse anti-competitive
practices. During the administrative process,
the company will present its defense,
according to applicable procedures.
For more information on the voluntary commitments
assumed by Votorantim Industrial (VID), as a whole,
please see the Votorantim Industrial Integrated Report
at: www.votorantim.com/relatorio.
Business Overview
37
The recognition
received shows
we are on the
right track
GRI
2.10
Honors and Awards
In 2012, we received the following honors and awards:
• Pini Prize - 2012: Best supplier to the construction
industry in the categories “Portland Cement”
• “Top of Mind” ranking from the Correio de Sergipe
newspaper - Most recalled brand (CimentoPoty).
• “Top Brands” prize from Jornal Vanguarda
of Caruaru - Most recalled brand (CimentoPoty).
and “Concrete Batcher”.
• Top Anamaco Award 2012: “Sales and Marketing” for
• The U.S. Portland Cement Association and the
the projects “VC em Campo” and “ Cartão VC Mais”
magazine Americas Cement awards (St. Marys
Cement Inc): the prize for Land Stewardship,
which recognized its commitment to addressing
• Anamaco Award 2012: First place in “Cement and
Hydrated Lime” and 2nd place in “Adhesive Mortars”.
environmental issues in the U.S. cement industry.
• Survey on the Most Admired Companies in Brazil
• “Concept and Imaging” ranking from Revenda
magazine - First place in the Cement category.
organized by Carta Capital magazine in the category:
Manufacturer of Construction Materials.
Commendations for: Adhesive Mortar, Hydrated
Lime, Textured Coating and Grout.
• 16th “Best Product of the Year” award by
RevendaConstrução magazine: First place in the
• “Top of Mind” ranking from Amanhã magazine -
38
“Cement” category. Second place in “Textured
Most remembered brand in Rio Grande do Sul
Coatings” and 3rd place in the categories “Mortar”
and Paraná (Cement Votoran).
and “Hydrated Lime”.
• The Portland Cement Association presented the PCA
• The Charlevoix plant (VCNA) in the U.S., received
the award for environmental management from
Large Terminal Safety Award to the St. Marys terminal
the Portland Cement Association (PCA Land
in the Port of Milwaukee and the PCA Medium
Stewardship Award).
Terminal Safety Award to the terminal in Cleveland.
• VCNA’s aggregates operations received awards
• VCNA’s aggregate plants, Brighton, Clarington,
Cramahe, Fanshawe and Thamesford, received
from the Indiana Mineral Aggregates Association
the Ontario Sand, Stone & Gravel Association’s
for Safety and Excellence in Mining.
Progressive Rehabilitation Award.
• The Ontario Concrete Awards were given, in three
categories, to projects in Ontario, where CBM/VCNA
• The Detroit plant received the PCA Chairman’s
was the partner for concrete operations.
Safety Award.
For more information on the honors and awards received by
Votorantim Industrial (VID) as a whole, please see the Votorantim
Industrial Integrated Report at: www.votorantim.com/relatorio.
• VCNA’s aggregate plants in Paxton, Pontiac,
Marengo, Manteno, Ashkum, Dixon, Shelbyville
and Bloomfield received the Rock Solid Safety
Award which recognizes excellence in occupational
health and safety in the aggregates business
Business Overview
39
Our Identity
GRI
4.8
OUR FOUNDING PRINCIPLES
GUIDE OUR BUSINESS
ACTIONS AND RELATIONS
WITH STAKEHOLDERS
• Ethics and values that guide responsible
Votorantim Cimentos is a business division
business conduct.
of Votorantim Industrial (VID), one of the
largest industrial conglomerates in Latin
• Highly competitive business divisions.
America. We in VC can count on the resources
• The constant drive to incorporate creative and
of the organization as a whole as a foundation
for developing our business strategy, and
innovative products and services into its portfolio.
• People who are motivated to achieve
supporting our goal of growth with sustainable
high performance.
results both in Brazil and overseas. In this
way we can generate value for all of our
stakeholders: customers, employees, partners,
local communities and society in general.
Values
Our values are represented by the acronym SEREU:
Our corporate identity is expressed by a set of
founding principles and guidelines, as follows:
• Vision
• Solidity - To seek sustainable growth with
• Values
• Aspirations
value creation.
• Management Beliefs
• Ethics - To act responsibly and transparently.
• Sustainability Principles
• Respect - To respect people and be willing
These pillars are our essence and they guide our
• Entrepreneurship - To have the courage
to learn.
position, our operations and business operation
and our relationships with our stakeholders.
to grow, innovate and invest.
• Union - The whole is stronger than the sum
of the parts..
Vision
Aspirations
To ensure the growth and sustainability
of the organization as a large family-owned
Our aspirations are summarized in
group that is respected and admired by the
two propositions:
communities where it operates, and is focused
on creating economic, environmental
• To grow in the long term, and in a
and social value, based on:
sustainable manner.
• To achieve world-class standards in our
operations and management, comparable
to those of the best global companies.
Our Identity
41
Management Beliefs
Our management beliefs are:
• Open Dialogue
We believe that an atmosphere of trust will
foster open dialogue and ensure that all have
room to speak and to be heard, and also that
a diversity of opinions leads to better solutions.
• Partnerships
We believe that our success is a result of collaborative
efforts, strengthened by genuine relationships and
• Talent development
We invest time and effort in developing our talented
employees because we believe in and trust them.
• Meritocracy
We believe that people are individuals and deserve
to be treated fairly and in accordance with their
personal performance.
• Excellence
We believe we can always do more and better
to overcome challenges with discipline, humility
and simplicity.
• Pragmatism
We believe it is essential to devote time and energy
to what is most relevant, with objectivity and without
losing sight of the big picture or future trends.
partnership in which everyone wins.
• Sense of ownership
We believe in people who take on responsibility,
work with passion and lead by example, celebrating
their achievements and using mistakes as an
opportunity for learning.
Sustainability Principles
We seek the long-term survival and continuous
expansion of our business, based on appropriate and
consistent results. We believe that sustainability is vital
to ensure the permanent growth of the organization,
as expressed through our corporate identity.
Increasingly companies are scrutinized both by the
market and by society in relation to sustainability. Our
efforts and actions in sustainability are guided by our
Sustainability Principles, which are in turn aligned with
the principles of the UN Global Compact.
Our Sustainability Principles
1, 2, 8
1. To be recognized by society as a socially and environmentally responsible organization.
2. To have sustainability as a strategy, guiding governance, management, education, decisions and investments,
1 up to 10
thereby creating value.
3. To consistently improve our economic, social and environmental performance, striving to achieve world-class
3 up to 9
standards of efficiency and operational reliability.
4. To be recognized as a company that attracts, develops and retains talent to create value and build a fair
3 up to 6
1 up to 6
1, 2, 4,
5, 8
3, 4, 5,
6,10
42
and inclusive society.
5. To be committed to the welfare, health and safety of our employees, customers and partners.
6. To contribute to the development of the local communities where we operate.
7. To encourage the cooperation and participation of all employees and stakeholders in building partnerships
and working together in order to generate value for all.
GRI
4.4,4.6,
HR4,HR6,
HR7,SO4
Corporate Ombudsman
Code of Conduct
Our Corporate Ombudsman is accessible to all our
We have a Votorantim Code of Conduct, released
stakeholders (both in Brazil and overseas), such as
in 2005, which establishes the basic parameters
employees, suppliers, customers, local communities,
of our operations. In 2012, the code was updated
4,5,6
the media and others, on any issue, but especially
to address even more clearly, the issues relating
on those relating to our Code of Conduct, such as
to the use of child labor and forced or compulsory
harassment (moral, sexual) discrimination, suspicion
labor, which we most explicitly repudiate.
of fraud, abuse of power, embezzlement, unlawful
acts and other forms of non-compliance.
The Code now also includes more current issues,
such as liability for information security and the
All of the requests and complaints are treated
use of electronic information systems.
confidentially and impartially (identification of
the complainant is optional). The Ombudsman
The code is available (in several languages)
can be accessed in the following ways:
to all of our employees in Brazil and overseas,
and also to contractors, partners, suppliers
and other stakeholders, on our website at:
http://www.votorantim.com/pt-br/ouvidoria/
codigoConduta/Paginas/codigoConduta.aspx
• Phone: 0800-8911729
• Website: http://www.votorantim.com/pt-br/ouvidoria
• Mail: Please send correspondence to PO Box 19134 São Paulo - SP
Complaints are recorded in a specific stand-alone
system. Investigations are carried out by Corporate
Anti-corruption Standards:
Audit. The results are sent to the Corporate
Ombudsman who is responsible for responding
With the objective of disseminating
to the sender of the complaint. All incidents
the best international practices internally,
are discussed and handled in bimonthly meetings
we have established a Corporate Global
between representatives of the Corporate Conduct
Anti-corruption Policy, which applies to all
Committee and the Business Division Conduct
our operations. The policy is aligned with
Committees. A summary of the minutes of each
the Foreign Corrupt Practices Act (FCPA-U.S.)
meeting is sent to the VID Board and to the CEO.
and the Bribery Act (UK). This policy addresses
issues such as bribery and facilitation payments,
accounting rules, internal controls and the
management of relations with third parties.
The policy is available on our website at:
www.votorantim.com
Our Identity
43
The VID Corporate Conduct Committee
is composed of representatives of the Business
GRI
HR4
Number of Discrimination
Cases Identified
Division Conduct Committees, Internal Audit,
104
the Legal and HOD Departments. It is responsible
for handling special cases arising in the Business
Division Conduct Committees, and for establishing
criteria for: cases not provided for in the Code;
63
situations of conflict of interest; and uniformity
in the application of the criteria used. It is also
responsible for championing the good functioning
of the Ombudsman function in the organization.
In 2012, we implemented an Ombudsman Policy,
Harassment and
applicable to the whole organization, in order to
abuse of power
2011
standardize guidelines and policy interpretations
and to formalize the procedures and processes.
Our approach to remediation, for recurrent
GRI
SO4
namely: guidance, warnings, transfers or
10
analyzed and classified as founded or unfounded.
process, and then the appropriate actions are taken.
The following table shows the actions taken
re-allocations, dismissals and the termination
in cases of corruption:
of contracts.
We closed the year 2012 with 104 complaints
deemed valid for VID as a whole.
The complaints received by the Ombudsman are
From there they go through an internal audit
infringements, is based on rules for consequence
management, which are defined in the Code,
2012
GRI
SO4
Results of Corporate Audit on Cases
of Corruption
For 2013, our goal is to enhance the training of
39
specialist Ombudsmen and specific training programs
to create a stronger Ombudsmen culture in all the
business divisions and functional areas.
19
In 2012 we instituted
an Ombudsman Policy,
valid for the whole
organization.
11
6
2011
2012
Total number of employees punished or dismissed for corruption
Number of cases of contracts not renewed with partners due
to violations related to corruption
44
GRI
4.1,4.2,
4.3,4.4,
4.7,4.9
Corporate Governance
and to facilitate the effective realization of new
Our strategy for corporate governance is based
being developed, including specific regulations for
on the following factors:
the new structure of Board advisory committees.
growth opportunities. New by-laws for VID are
Although Votorantim is a privately-held
• Family-controlled organization
organization, it follows the high standards and
• Leadership team which is qualified to manage
practices that are adopted by major publicly-owned
corporations which give great emphasis to
the business divisions
• Integrated vision.
transparency and equality in their relations with
• Controlled environment managed under high
their stakeholders. This includes the disclosure
of quarterly financial results.
standards of governance.
• Long-term business sustainability.
• Corporate policies and the guidelines of the
Corporate Governance Structure
Code of Conduct.
At VC, we believe that good governance practices
We are committed to continually improving our
contribute to achieving our aspiration to grow with
governance model. We have begun to implement
sustainable results, and so we are continually evolving in
a new corporate governance structure which aims
this area. In 2012, we began to review the structure of
to prepare the organization to be controlled, in the
the internal committees linked to senior management,
long-run, by the next generation of shareholders,
defining competencies and responsibilities.
COMMITTEE
RESPONSIBILITY
Conduct Committee
Management of Ombudsman issues and cases of misconduct.
Fixed Remuneration Committee
Definition of promotions and merit.
Variable Remuneration Committee
Management of Results Participation Program
Votorantim Development System
(SDV) Committee
Management of Employee Performance Evaluation System.
HR Committee
Evaluation of the strategy for managing people and definition of the succession pool.
Risk Committee
Procedures for identifying, assessing and monitoring risks
IT Committee
Prioritization of investments and monitoring of projects.
Safety Committee
Management of occupational safety indicators and actions.
Environment Committee
Assessment and monitoring of environmental risks and opportunities.
Mining Development Committee
Management of the strategy for and capacity of mining activities.
Capital Investment (CAPEX)
Investment Committee
Decision-making on and prioritization of investments.
Executive Committee for Sustainability
Management of sustainability initiatives and projects.
Our Identity
45
Internal Policies
• Executive Committee for Sustainability,
composed of members of the senior leadership
Governance in VC is reinforced by internal policies
team - presidents and directors. This committee
that guide the attitude of the employees day-to-day:
meets to discuss and monitor priority sustainability
issues, with activities carried out by the respective
• Excellence Policy: Sets the model of excellence
in the management of issues such as health and
work-groups.
• Sustainability Committee, composed of the
safety, people, environment, customer satisfaction,
coordinators of the work-groups (listed below)
process improvement, performance optimization
and VC’s technical director. The committee
and cost control.
meets every three months to discuss the progress
• Environmental Policy and Green Rules: Set
of the work-groups and exchange information
standards that describe the behaviors expected
and experiences, thereby promoting the integrated
of employees in relation to environmental issues
management of the various themes.
that we select.
• Rules for Life: Guidelines for the prevention
of accidents.
• Technical Director/General Manager for
Sustainability – this area has the role of facilitating
the work of committees, coordinating the workgroups, managing the voluntary external commitments
GRI
4.10
Sustainability Governance
Sustainability is a cross-cutting theme for all
of our business divisions. Senior managers have
specific goals relating to sustainability issues in
their annual individual assessments.
In 2012, we made progress in our model
of sustainability governance, and defined
the management structure of this theme with
in VC as follows:
46
and communicating on sustainability. It also supports
the organization’s divisional and corporate center
areas in the development of the themes.
• Work-groups – Each group is led by a senior
professional and comprises people from the different
technical and management areas of the various
business divisions.
The proposed sustainability governance structure involves many different areas of the organization
Positioning, Priorities, Guidelines and Targets
OPERATING GROUPS
SUSTAINABILITY EXECUTIVE COMMITTEE
SUSTAINABILITY COMMITTEE
Sustainability
Management and
Communication
Functional Area Managers
Functional Areas
Technical Directory
Work Groups
Supports
Reports
Facilitates
1. Responsible use of fuel and
energy
2. Responsible use of raw materials
3. Water resource management
Coordinates
SUSTAINABILITY GENERAL
MANAGEMENT
4. Solid waste
5. Emissions of CO2 and other
pollutants
6. Health and safety
Aligns
Manages
7. Local developoment
8. Biodiversity
9. Sustainable and inclusive
• Preparation of Annual reports
Group and Group Companies
• Consolidation of information on
sustainability projects
• Adherence to voluntary commitmentss
• Management of institutional
partnerships
construction
10. Supplier management
11. Sustainability in Human and
Organizational Development
(HOD)
12. Green Rules priorities
We also have a specific governance process for the environment. Given the strategic importance of the topic for us there is a specific
environmental work-group, formed by the VC leadership team. The group meets to discuss the evolution of indicators by business
division and region.
By strengthening the governance process, we have accelerated the implementation of the proposed initiatives with good results.
There is more information in the Business Model and Performance section of this report.
Our Identity
47
Business Model
and Performance
WE ACHIEVED SOLID RESULTS IN 2012:
INCREASED PRODUCTION, EXPANSION
OF THE INTERNATIONAL NETWORK AND
IMPROVED CUSTOMER SERVICE
Strategic Planning
Votorantim Management System (SGV)
Our long-term strategic plan (the Five-year Plan) is updated
The SGV was developed to facilitate the management
annually and involves discussions between the corporate center
and implementation of the strategic plan. The system assists
and the business divisions. The strategic plan and projected
us to continually improve our procedures and practices,
results are based on assumptions developed from research on
by capturing synergies, by transferring skills between
macroeconomic trends, market and industry sector scenarios
the business divisions and by implementing best market
and competitive analysis. Our business division plans
practices. The SGV system is administered by the Corporate
incorporate the impacts of expansion projects and investments,
Management Committees (coordinated by senior
the performance management of the plants, risk analysis and
management) with the support of specialist Thematic
the material issues linked to sustainability.
Teams (which are made up of experts from the business
divisions and coordinated on a rotational basis).
The validation of the strategic plan is formalized after
discussions with VID’s Board.
In this process, the focus and performance of each business
division are defined, and resources are allocated to investments
GRI
2.8,EC1
Despite the economic conditions faced
on the basis of their economic return and impact on our
over the last few years, VC has achieved
competitive position. The evaluation of projects and the
solid results, confirming the resilience
prioritization of strategies are based on criteria which consider
of our business model. The actions
the efficient use of resources, the adequacy of the
undertaken over that time period were
organizational structure, the material issues of sustainability
directed at meeting the demand generated
and the technological developments expected.
by both the opportunities created by the
government and the higher average income
For more information on VID’s governance structure and
of the Brazilian consumer.
strategic planning process, please see the Votorantim Industrial
Integrated Report at: www.votorantim.com/relatorio
Responsible Growth
Total Income *
Sales of products and
services
Other operation income
(expenses)
Provision for credits of
doubtful settlement
Total revenues
2011
2012
11,205,555
12,070,735
65,467
551,553
(1,922)
11,269,100
(11,077)
12,611,211
* Breakdown of Value-added (DVA)
Business Model and Performance
49
In 2012 VC’s income was distributed as follows:
In addition, 2012 saw the expansion of the
Rio Branco do Sul (PR) and Laranjeiras (SE)
Statement of value added / sva 2012
units, and the inauguration of the Cuiabá (MT)
unit, which occurred in November.
12%
• Sales
Our product sales volumes in Brazil were:
24.3 million tons of cement, 15.0 million tons
of aggregates, 4.8 million cubic meters of concrete
21%
and 1.7 million tons of mortar. In the U.S. market,
we sold 4.0 million tons of cement, 11.3 million
42%
tons of aggregates and 4.0 million cubic meters
of concrete. Consolidated net income for cement,
concrete and mortar increased by 4.3%, 2.2%
25%
and 7.1%, respectively, compared to the year 2011.
This result was due mainly to increased demand
in the heavy construction sector and the start-up
Salaries and Employee Benefits
of new operational units.
Remuneration of Third-party Capital
Remuneration of Own Capital
Payments to Government
Sales Volume - Cement (‘000 tons)
26,369
We would like to highlight the following
3.581
27,303
3.621
28,309
4.009
achievements in 2012:
• Increased production
We ended 2012 with a production capacity
of 30.1 million tons of cement per year in
Brazil and 52.2 million tons of cement per year
worldwide, 80% more than in December 2010.
This increase was due mainly to the entry
of new units into operation and improvements
in our operational efficiency. The asset swap
with Cimpor also added a significant volume
to our annual production.
50
2010
2011
2012
VC Brazil and VC North America
• Net Income
• Costs / expenses
Our global net income totaled R$ 9.5 billion,
Cement production is a highly capital-intensive
9% more than in the prior year. In Brazil, our net
activity and it is based on the extraction and
income totaled R$ 7.7 billion, 6% higher than the
processing of natural resources. Thus, our cost
previous year’s figure. This result was due mainly
structure comprises mainly processing (energy)
to the start-up of new plants and mills, which
and the maintenance and operation of plants.
increased our sales volume of cement, concrete
and mortar by 3.3%, 5.4% and 7%, respectively,
The cost of products sold was 9% higher than
and also by the increase in the average prices for
the amount recorded in 2011.
cement and mortar of 4.1% and 2.8% respectively.
Consolidated expenses increased by 14%
Our North American operations increased
compared to 2011.
their net income to R$ 1.8 billion, up 23%
compared to 2011. This result was mainly due
to the appreciation of the dollar against the real
by 17%. Excluding currency effects, VCNA’s net
income increased by 3.5% compared to 2011.
The sales volumes of cement and aggregates
recorded increases of 11% and 9% respectively,
compared to 2011. This was offset by the lower
average prices of these products, down 3% and
1%respectively, and a lower concrete volume,
down 2%.
The consolidated net
income was 9% higher
than the previous year
Consolidated Net Income (R$ Million)
8,698
8,047
1.448
9,482
1.777
1.509
2010
2011
2012
51
• Earnings before Interest, Taxes, Depreciation
In other transactions we raised our shareholdings in
and Amortization (EBITDA)
Cementos Avellaneda S.A. (Argentina) and Cementos
VC’s adjusted and consolidated EBITDA was
Artigas S.A. (Uruguay) to 49% and 51%, respectively.
R$ 3.1 billion, 11% higher than in the previous year.
These transactions reinforced our strategy of continually
investing in the growth of our business in the Americas.
Consolidated EBITDA (R$ MM)
2,805
2,777
3,071
296
VC’s capital expenditures totaled R$ 1.5 billion in 2012.
Of this amount, R$ 1.2 billion, or 78%, related to our
expansion projects, which included plants in: Edealina
263
(GO) - which began construction in December 2012;
Cuiabá (MT) - which went into operation in November
2012; Rio Branco do Sul (PR); Primavera (PA); Santa
Helena (SP); and Cimesa, emLaranjeiras (SE)
All of these actions are part of an expansion plan that
envisages making investments in the period from 2007
to 2014, involving the construction and expansion of VC
2010
2011
2012
manufacturing units throughout the country
Consolidated Investments (R$ MM)
• Net profit
1,723
Net profit in 2012 was R$ 1.6 billion, 92% higher
1,578
than in 2011. This was due mainly to the increase
in sales during the year (9%) and the extraordinary
gains of R$ 267 million from the sale of our stake
964
of 21.21% in Cimpor and of R$ 390 million from
the elimination of deferred income tax generated
by the asset swap with Cimpor.
• Investments
With the expansion of our international operations
in Europe, Asia and Africa, due to the exchange
2010
2011
2012
of assets with Cimpor, we now have a presence
in Spain, India, China, Turkey, Morocco and Tunisia,
as well as a limestone mine in Peru. As a result
we added 16.3 million tons to our worldwide
production capacity and incorporated 13 cement
plants, one clinker plant, eight grinding mills,
78 concrete units, 22 aggregate plants, five
mortar plants and one hydrated lime plant.
52
Debt Profile - 2012
• Liquidity and debt
Debt management and the optimization of our capital
2%
structure are priorities for VC. In 2012, our gross debt
totaled R$ 12.8 billion, composed of 5% in short-term
17%
debt and 95% in long-term debt.
In 2012, our total consolidated indebtedness was
R$ 1.5 billion, of which 5% was in short-term debt
32%
and 95% in long-term debt. Our debt denominated
in reais and in foreign currency amounted to 11.5%
and 51% of our total debt, respectively. In terms of
49%
foreign currency, the equivalent of R$ 4.1 billion was
denominated in U.S. dollars and R$ 2.1 billion was
denominated in euros.
In the first and second semesters of 2012 we
EUR
USD
BRL
Other Currencies
issued debentures in the amounts of R$ 1 billion
and R$ 1.2 billion respectively. We also raised
12%
US$ 500 million from a re-issue under our 30-year
38%
bond facility. These were the main reasons for the
increase in our debt. We used the proceeds from
13%
this issue to extend the average maturity of our debt
profile and strengthen our working capital position.
In December 2012, due to the completion
of the swap of our stake in Cimpor, we took
control of 100% of VCEAA, the subsidiary which
37%
consolidates our assets in Spain, India, Turkey,
Morocco, Tunisia and China. As a result we added
16.3 million tons to our production capacity,
and began to fully consolidate these assets
and liabilities on our balance sheet.
Debentures
Bonds
BNDES, Export
Credit Agency
Commercial
Bank Debt
Our cash balance at the end of 2012 rose
to R$ 3.0 billion, R$ 1.3 billion higher than
in 2011, primarily due to the amount of funds
raised during the year. These more than offset
the payment of dividends to our parent company,
VID, in the amount of R$ 2.4 billion. At year end
our net debt totaled R$ 9.8 billion, an increase
of R$ 3.4 billion, and our leverage, as measured
by the ratio of net debt to EBITDA, reached 3.2x.
53
Customer Service
Ongoing Program of Improvements
Our strategy of making VC a provider of basic construction
Relationships with Customers
Quality customer service is a top priority for us. We have
a portfolio of 30,000 retail customers, spread out over all
the regions of Brazil. Our clients range from large construction
companies to small entrepreneurs and owners of building
material shops. Our business proposal is to give each of
them a customized level of service.
We take specific actions to maintain close relationships
with our customers, and to understand their expectations
and needs. Examples of these actions are as follows:
• “VC in the Field”
We want to ensure that all VC employees are focused on
serving the customer and not just those who work in sales and
marketing. One of our actions to support this idea is the VC in
the Field program, which organizes visits by employees of VC’s
various units and functional areas to customers, together with
the sales team.
The program is held every semester, and in three editions
to date (one in 2011 and two in 2012), over 1,200 employees
drawn from all of our business segments (Cement,
Complementary Products, Concrete and Aggregates),
made visits to over 1,500 clients.
• “Open Doors” program
This program, initially designed in 2011 to receive visits by
members of the local community, now has a version aimed
at our customers. Customers are invited to visit our factories
in order to understand how we operate and see how cement
is produced. In 2012, we organized 82 visits, involving
approximately 2,500 customers.
materials and services requires that we pay special attention
to all processes involving customer service.
In 2012, we initiated a review of these processes, in search
of improvements. The new project, still in the pilot phase,
aims at upgrading the following points:
• The registration of orders and payments in order
to authorize delivery.
• The operation of a Customer Service Center accessed
by phone and other communication channels.
• The provision of services to truck drivers in order to speed
up loading and unloading, and avoid trucks being parked for
a long time in our plants and distribution centers. We give
guidance to truck drivers about safety and customer service,
and have a loyalty program, with a score based on the number
of times they work with us in a given period. In late 2012, the
loyalty program for truck drivers was implemented in 28 units,
involving a total of 1,200 drivers. In 2013, these services will
be extended to other plants and distribution centers.
• Delivery of the right order at the right time: we have
noted an improvement in our OTIF (short for “On time in
full”), an indicator used to measure our customer service
related to distribution.
• Quality of products.
One of the highlights for improving customer service was
the implementation of the software Distribution Network
Optimizer, which aims to achieve the optimal flow of products
and materials in order to reduce distribution costs and to
ensure a better service for the market.
The Distribution Network Optimizer System centralizes data
on production, inventory, transportation and tax issues. It allows us,
within minutes, to simulate scenarios and identify the best routes
for deliveries, an analysis that previously took days. Deliveries can
be scheduled between a week and 15 months from the order date.
54
GRI
PR5
Customer Satisfaction Survey
Periodically we evaluate customer satisfaction.
We conducted two customer satisfaction surveys
A satisfactory level
of customer service is
one of our priorities
in 2011 and one in 2012, between June and
November. In the latter survey, 2,330 customers,
distributed throughout the country, were
interviewed by telephone.
The level of overall customer satisfaction with VC
shows a positive trend:
Research
conducted in:
2011: 03/22
to 04/13
2011: 10/10
to 11/24
2012: 06/01
to 11/30
Number of
customers
interviewed:
Overall
satisfaction
rate:
1,701
77%
1,510
84%
2,330
87%
Satisfaction with the delivery of products:
Research
conducted in:
2011: 03/22
to 13/04
2011: 10/10
to 11/24
2012: 06/01
to 11/30
Timeliness of
delivery in respect
of the date
specified at the
time of the order
GRI
EN30,EN26
Delivery date
specified at the
time of the order
82%
78%
86%
83%
89%
88%
Environmental Activities
and Investments
We have outstanding environmental performance
among the companies participating in the Cement
Sustainability Initiative (CSI), with one of the lowest
CO2 emission rates of this group of companies.
The actions relating to the environment follow
the guidelines of our Environmental Policy
The OTIF, an indicator that measures the performance
and include the use of cleaner technologies
of customer service related to distribution, i.e. the
and low carbon fuels, emission reduction, and
delivery of the right order at the right time, and in
environmental conservation, all coordinated in
the right quantity, also improved from 84.9% in 2011
a process of integrated management, which drives
to 91.7% in 2012.
their development. Recognizing the essential
role of each employee in this process, we have
We also monitor the quality of the services of
reinforced the communication on the Green Rules,
our Customer Service Center: in 2012, about 80%
which serve as a guide for people’s behavior
of calls were answered. The abandonment rate
in day-to-day activities.
of calls in 2012 was 16%, 22% less than in 2011.
55
In 2012, we spent R$ 31.6 million on CAPEX projects and R $ 27.7 million on operational expenses (OPEX).
The distribution of the capital investments is detailed in the following chart:
GRI
EN30
capex
6,682.035
123,908
1,464,911
4,287,468
Environmental management
Waste treatment
Conservation, Reforestation
Waste-water treatment
and Biodiversity
230,896
Environmental Prevention
Treatment of air emissions
18,036,477
GRI
EN30
Decommissioning/
Remediation of
contaminated areas
864,373
0pex
524,545
2,770,920
5,502,292
Environmental education
HOD - Environmental Area
Environmental management
Decommissioning/
1,262,195
805,861
Environmental Preventio
contaminated areas
Conservation, Reforestation
5,026,257
Remediation of
(soil and water)
and Biodiversity
1,187,583
1,475,410
Other environmental
expenses
Waste treatment
5,939,534
3,292,975
Waste-water treatment
The Votorantim Management System includes the CAPEX Management System which addresses capital investment guidelines.
Eco-efficiency and the Responsible Use of Resources
GRI
EN3,EN4
EN5
Responsible Use of Fuels
and Electric Power
Energy consumption is an important source
of CO2 emissions. At VC, we operate in an organized
manner to increase our energy consumption
efficiency and to invest in the diversification
of our energy matrix.
56
Votorantim Energia (VE) manages our contracts
and operates/manages our company-owned plants
and/or holdings in plants to generate electric power
(except for two small hydroelectric plants we own
in Itaú de Minas and Rio Branco). The management
of thermal energy (fuel) is our responsibility, including
the corporate purchasing of low carbon fuels, the
corporate management of co-processing services
and the corporate management of coke purchasing.
Specific Eletric Energy Consumption per tonnes of Cement
In Brazil, we have a network
of industrial plants which operate
with up-to-date technology
0%
0%
and our projects for expanding
capacity employ the most advanced
124
124
117
112
technology available globally,
106
99
which has enabled a significant
115
107
106
103
116
120
118
2,2%
3,4%
reduction in energy consumption.
5,0%
6,7%
In 2012, we saved 4,121,631 GJ
9,6%
5,5%
of total energy.
7,3%
14,6%
14,7%
13,6%17,2%
20,2%
1990
1990
2010
2011
Specific Consumption
7,8
2012
Reduction
Preserve vegetation.
Green Rules
Preserve waterways.
Dispose of waste properly.
Report any problems in the operation
of pollution control systems.
We have strengthened the governance of environmental
Do not mistreat or capture wild animals.
issues: we have established regular meeting on this
theme, which brings together the directors of the
business segments (Cement, Concrete, Aggregates and
Complementary Products), as well as the Technical Director,
the environmental area and our regional managers.
Do not carry out activities in protected areas.
Preserve caves and archaeological sites.
Do not set fire to vegetation.
Do not work the land or store supplies
in unauthorized areas.
Make conscious use of natural resources.
121
57
1
We hold an annual meeting for the staff of the environmental functional areas of VC’s plants in Brazil. The meetings include
presentations by outside experts on current environmental issues with the aim of providing training and discussion on achieving
continuing improvements in the environmental performance of our plants.
GRI
EN5
Energy saved due to improvements
in conservation and efficiency (GJ)
4,121,613
The initiatives with the greatest impact on reducing
energy consumption were as follows:
• IInstallation of a roller-type grinding mill at the
new plant in Vidal Ramos (SC). As a result the plant
reduced its total consumption of electricity by
2,014,086
about 23% compared to the plants with ball-type
grinding mills. Roller-type grinding mills have been
purchased for our plants in Rio Branco do Sul (PR),
Cuiabá (MT), Xambioá (TO), Edealina (GO) and
Primavera (PA).
• Installation of vertical mills for grinding cement
2011
2012
and slag in our plants in São Luís (MA) and Santa
Cruz (RJ). This technology has reduced energy
Total energy saved due to improvements
in conservation and efficiency
consumption by 30% compared to other plants,
for the same type of cement.
• Adjustments to the operation of new furnaces
in Salto de Pirapora (SP) and Vidal Ramos (SC).
These reduced thermal energy consumption by
6% compared to the average for all VC plants.
58
Another action that contributes to greater efficiency
In 2012 we faced shortages in the availability of biomass
and a reduction of CO2 emissions is the replacement
on the market. Furthermore, cement consumption grew and,
of fossil fuel energy with that produced from
as co-processing reduces productivity, our preference was
biomass, waste and other materials. We have four
for maintaining customer service, and we decreased the pace
co-processing projects that use low carbon fuels,
of our thermal energy substitution strategy. Today we have
planned for our plants in: Vidal Ramos (SC), Rio
reached a rate of 10.2% of thermal energy substitution and
Branco do Sul (PR), Cimesa (SE) and Cuiabá (MT).
are working with a goal of doubling this level over the next
five years in Brazil and North America.
These projects are expected to come into operation
in mid-2013, except for the Cuiabá project, which is
planned for the last quarter. Besides this, we have
five other projects under technical and economic
analysis for deployment in 2014.
Specific Thermal Consuption
in Clinker Production
Thermal Substitution Rate
0%
13.2%
4,625
12.8%
10.2%
3,490 3,496
9.0%
8.8%
3,381
5.5%
4.1%
4.0%
2010
2011
4.7%
24.5% 24.4%
26.9%
1.4% 1.4%
0.0%
1990
2010
2011
2012
1990
Specific Consumption
Biomass
Reduction
Low carbon fossil fuels
2012
Total
59
GRI
EN1,EN2
EN26
Responsible Use of Raw Materials
We strive to use raw materials in a responsible
manner in all of our production processes. Raw
materials are managed by each business segment
according to its operational characteristics and needs.
We are working to reduce the consumption
8,9
of clinker, the principal component of the
manufacture of cement. As a result we expect to
reduce our dependence on non-renewable fuels,
reduce emissions of CO2 and maximize the use of
In the Concrete and Aggregates segments, we are expanding
the use of re-cycled materials, similarly to the Zero Loss
program, also known as the Sustainable Engemix program.
EN2 - Percentage of recycled
materials used
Recycled materials used (tons)
Total raw materials used (EN1)
Total recycled materials used as inputs
2012
71,941,244.11
5,545,024.63
Percentage of recycled materials used
as inputs
8%
non-cementitious materials. The main substitutes
for clinker are pozzolan (a calcinated clay, a type
of ash derived from industrial burning processes),
slag and other materials.
GRI
EN1
As listed in the chart below, the substitute
GRI
EN2
materials in cement powder included contaminated
soil materials, iron mill scale and gravel. The substitute
Use of Materials (million tons)
raw materials in the cement grinding mill included
artificial gypsum, slag and ash.
Recycled materials used (tons)
41.42
30.53
1.31%
0.0048%
0.12%
25.81%
0.46%
72.30%
Cement
60
Cement: ground
limestone, ground
gypsum, clay, artificial
plaster, limestone
additive, slag, ash,
pozzolan, contaminated
soil, gravel, iron mill
scale, and others.
Another VC business
Other VC business:
Concrete- sand, gravel,
cement and rice husk;
Aggregates - ground
limestone, ground
gypsum and clay;
Complementary Products
- ground limestone,
ground gypsum, clay,
sand, chemical additives
and cements.
Recycled materials used (Cement)
Substitutes of raw materials in cement powder (Cement)
Substitutes for raw materials in cement grinding mill
Additives (Cement)
Returned concrete reused
Aggregates
The problem that became a solution
GRI
EN8
In the past about 2% of the concrete produced by Engemix
was disposed of as rubble - around 100,000 cubic meters
per year, equivalent to the volume of concrete used to build
40 medium-sized buildings.
Management of Water Resources
Our Environmental Policy and Green Rules,
implemented in 2011, set guidelines related to the
pursuit of efficiency in the use and conservation
of water resources, and the collection and disposal
of effluents. To strengthen the governance one this
question, we created a work-group dedicated to water
Besides the loss of material, there were a number
of other problems such as:
resources and in 2013 we will work on new procedures
to further improve the management of water resources
in all VC units.
• The cost of removing and disposing of the waste
in landfills.
• The high cost of water for cleaning the inside of concrete
mixers (850 gallons of water on average per mixer).
• Increased emissions of CO2 caused by the cleaning
process, since the mixer continued rotating throughout
the whole process.
Last year we undertook a study to evaluate the
operations that are at risk of water shortages using the
methodology of the Global Water Tool (GWT). The goal
is to develop action plans and targets to be achieved by
each of the areas and units.
An important step will be the sharing of successful
The solution came through the Zero Loss Program.
Our team developed a special additive to retard the
chemical reactions in the setting of cement, thereby
extending the useful life of concrete from two to 48
hours, without any loss of product quality.
initiatives, for example, our experience at Capivari de
Baixo (SC). This unit collects rainwater that is then used
to water access roads, to clean the storage area of the
ash drier, and to feed into the system of microsprinklers in the conveyors that feed the ash into
storage silos. This practice avoids consumption of other
In 2012, the use of this additive reduced the amount
of waste rubble by 35%, generating annual savings of
R$ 3 million. A new initiative has reinforced the
benefits of this program. We have developed a crusher
that turns the hardened concrete in the mixers into
aggregates which are then converted into raw material
for cement production.
water sources and reduces the amount of ash blown
away by wind.
We have specific operational procedures for
managing the disposal of waste generated
in the production process and other activities,
with guidelines to identify, treat, dispose of and
monitor effluents. For example, we have developed
The Zero Loss Program has received several awards,
including the Top Anamaco Award (National
Association of Construction Material Dealers) and the
Argos Menna Barreto Award (Brazilian Institute of
Concrete - Ibracon).
a worksheet (the Environmental Operational
Performance Indicator) that registers the historic
data for the monitoring of effluents in each unit.
In the Engemix operations the effluents are captured
by a system of channels and flow to decanting tanks
for treatment. These tanks are composed of a system
of cells that retain the solid material before the liquid
effluent is pumped into water tanks. This water is then
reused in the production process and also in other
applications, such as watering the parking area.
61
GRI
EN22
Solid Waste
GRI
EN18,EN26
Emissões de CO2
e outros poluentes
8,9
With regard to our management of emissions,
One prominent initiative is the Zero Loss Program,
which has enabled Engemix to recycle 80% of the
waste generated in the concrete manufacturing
process back into the production process. This
it is worth noting that in 2012 we had a reduction
efficient solution was made possible due to the
of net emissions of CO2 (Kg CO2/ton of cementitious
development of the concrete additive described
product) of 23.9% over the 1990 base year.
above, thus reducing losses.
With this result, we exceeded the target that we
committed to with the CSI, which was to reduce
Most of our products are sold in bags and so
our emissions by 10% for this indicator.
the solid waste work-group is discussing economically
and environmentally viable solutions for the reverse
logistics of the packaging of our products.
Several factors contributed to us achieving this
reduction of CO2 in 2012, such as the reduced
proportion of clinker in cement manufacture,
Another area on which we are working is
higher efficiency in thermal energy consumption,
elimination of the presence of Polychlorinated
the reduction in electricity consumption (see
Biphenyls (PCBs - Askarel) in our inventory. In 2009,
“Responsible Use of Energy and Fuel” in this Report)
we initiated specific projects for this purpose.
and the use of biomass and low carbon fuels.
It is worth mentioning that we have been preparing
an annual emissions inventory for GHGs produced
in cement manufacture since 2005. In 2012, we
began to study the processes used in our Concrete,
Aggregates and Complementary Products units,
in order to broaden the scope of the inventory.
Specific CO2 Emission
794 794
Clinker/Cement Factor
0%
656
647 638
630 613 604
81.2%
75.6%
73.3%
72%
18.5%
20.7%
23.9%
1990
Gross
62
2010
Net
2011
2012
Net Reduction
1990
2010
2011
2012
Unidade de Paulista (PE)
63
Santa Helena (SP) Plant
We have taken measures to reduce emissions of
particulate matter, including investments in the:
• adoption of the “Dust Control” technology to
control particulate emissions in the clinker conveyor
belts in Esteio (RS).
• retrofitting of bag filters in the clinker kiln
chimneys in the plants in Pinheiro Machado (RS),
Itaú de Minas (MG) and Rio Branco do Sul (PR).
• Through the implementation of these measures
we have significantly reduced the specific particulate
emissions by 30.8% relative to 2011. In 2013, we will
• new micro-sprinkler systems in the conveyors that
feed ash into storage silos at Capivari de Baixo (SC).
continue with these efforts and have already decided
to focus on the management of particulate emissions
at our plants in Salto de Pirapora (SP), Santa Helena
(SP), Laranjeiras (SE) and Sobradinho (DF).
64
SPECIFIC DUST EMISSIONS
Cimesa (SE) Plant
0.20
0.19
0%
8.4%
0.15
0.14
24.7%
30.8%
2000
2010
2011
Specific Emission
2012
Reduction
Although we were in compliance with the local legislation
where we operate, we recorded increases of 3,6% and 11,3%
in the emissions of NOx and SOx respectively, compared to 2000.
As such we did not achieve our target for 2012 of a 5% reduction
in these pollutants. We have already planned investments in this
area for the next few years. We also have a program to improve
the monitoring and reporting of these emissions.
SPECIFIC NOX EMISSIONS
1.66
1.60
-3.6%
0%
1.50
1.36
6.1%
15.1%
2000
2010
2011
Specific Emission
2012
Reduction
65
Specific SO2 Emissions
1.09
0.98
-11.3%
0.97
0%
1.1%
0.81
17.3%
2000
2010
Specific Emission
66
2011
2012
Reduction
CO2 transformed into food for algae and biofuels
Our Canadian subsidiary, St. Marys Cement / VCNA, is developing an innovative technology using algae to mitigate
its emissions of CO2. This research project, still in its initial phase, started in 2009 in partnership with Pond Biofuels,
a biofuels company, and it consists of cultivating algae in bio-reactors that receive the gases generated in the cementmanufacturing process. The presence of CO2 accelerates the process of photosynthesis in the algae, which absorb CO2
and release oxygen. Besides the immediate environmental benefit from the absorption of CO2, the algae can then
be used in the manufacture of biofuels and other high value products, like nutraceutical and pharmaceutical feed stocks.
67
. GRI
EN11,EN12
EN13,EN14
MM2
Biodiversity
restoration plans.
Brazil is a country rich in biodiversity and there are
important conservation areas close to some of our
plants. Since 2011 we have been mapping the
biodiversity near our plants in order to more fully
understand the related issues and to manage our
business appropriately.
In 2012, we conducted a survey of the overlaps
between our plants and areas of high biodiversity,
using IBAT software. We identified the positioning
of all of our units in relation to the various biomes
and those units which were in or near areas of
high biodiversity value.
We mapped 48 units in Brazil and 34 in North
America (VCNA), of which 57.32% had overlaps
with areas of high biodiversity value. Of this
By 2020, we intend to have developed plans
for the closure and the restoration of degraded
areas for all of our plants and mines. These plans
will follow accepted international methodologies
and the management of each plan will be the
responsibility of the respective unit with the
support and monitoring of the corporate center.
As part of this strategy, we have entered into an
innovative partnership (see box below) with two
respected organizations working in environmental
conservation, namely, the SBE and the Biosphere
Reserve of the Atlantic. We will work together
on biodiversity projects at all of VC’s properties
throughout the Brazilian territory.
total number of units, 48.78% have developed
Among the biodiversity monitoring conducted, in the areas of the Vidal Ramos and Ribeirão Grande units some species of high biodiversity
value were found, such as Puma, Tapir, Hawk and Hedgehog.
Tapirus terrestris
Puma concolor
68
Spizaetus tyrannus
Erinaceus europaeus
Working together to
protect biodiversity
We have signed a cooperation agreement for
two years with the SBE, which focuses on actions
to conserve caves, and the Biosphere Reserve
of the Atlantic, which supports the conservation
of remaining areas of the Atlantic Rainforest.
The agreement aims to develop, initially, the
following projects: the creation of a “Guide
to Good Environmental Practices in Mining”,
with rules for mineral exploration; research
on the national speleological patrimony;
education in speleology; and the conservation
and management of caves, karst areas,
and areas of the Atlantic Rainforest.
Among the projects undertaken in 2012 was
the photo contest “Caves of Brazil”. A book was
also published on “The Human Being and the
Karst Landscape”. This event occurred during
the Rio + 20 Conference, with the participation
of representatives of the caving community.
We also began pilot programs to identify
environmental assets at our plants in Ribeirao
Grande (SP), in 2012, and at CIMESA, in Laranjeiras
(SE), beginning in 2013, in order to develop
a Sustainable Land Management Plan. This will
enable us to incorporate the conservation
of biodiversity and ecosystem services into
our strategic planning process. Another project
initiated in 2012 and still ongoing is the Cave
School at our plant in Xambioá (TO) which
provides training for local speleology groups.
Babaçu (Orbignya sp)
69
GRI
LA7
Health and Safety
Safety
Votorantim Cimentos ranks among those firms that
have a better record for safety in the cement sector.
The CSI has developed specific guidelines for driving
safety with the aim of reducing the rate of traffic
accidents, which is the leading cause of fatalities
among the companies involved in the initiative.
As a member of CSI, VC has undertaken to apply
the best practice guide, which can be read in detail
at: http://www.wbcsdcement.org/index.php/
key-issues/health-and-safety/driver--contractor-safety)
The current market conditions in Brazil, characterized
by a lack of manpower and high turnover, bring
additional challenges to this issue. In addition,
there is the challenge represented by the fast pace
Cards available to VC employees with Health and Safety Norms
70
of expansion of the company, driven by the
construction of new plants in 2012. In each of these
construction sites, up to 1,500 people are involved,
including both employees and outsourced staff,
which demands a concerted effort to divulge
and monitor the application of safety rules.
The main instruments for achieving this are
(i) the “Rules for Life” program which is a set
of processes, methods and equipment designed
to prevent accidents and to create an increasingly
safe working environment, (ii) the Management
Walking in the Area (GANA) program which ensures
that management is constantly monitoring safety
and (iii) the Right of Refusal. These programs
stipulate mandatory safety standards that must
be adopted at all times and by all involved.
Good Practice Example at the Vidal Ramos plant
“In our unit we noticed that truck drivers were behaving inadequately in order to be first in line for loading.
So we implemented a loading schedule with a fixed appointment time, and we used pagers to remind drivers
of their appointment times. The goal was to improve the quality of their lives, by allowing them more time
to rest and to be with their families. One of the factors that helped us in this work was the cooperation from
the local population and government agencies, which helped us to monitor the conduct of these professionals,
”said Ivan Sotoprieta, Head of Distribution at Votorantim Cimentos’s plant in Vidal Ramos (SC).
71
We ended 2012 with a frequency rate
of accidents lower than the previous previous
GRI
LA7
Total Fatalities
8
year’s. Still, we had fatalities in the year, two direct
and two indirect involving on-site employees,
six indirect involving off-site and five involving
On-site
third parties*, for we are deeply sorry. In such
5
cases, we investigate the responsibilities and the
Off-site
risk situations and use the results to develop new
measures, to both avoid them happening again
and to strengthen our actions to increase
2
awareness, in a continuous process of learning.
LTI Frequency Rate- Direct employees
0
2
0
Direct employees
1.27
1.06
2
0
2010
1.65
2
2011
2012
Indirect employees
*Third Party
*Third-party: This classification includes any person who
is not categorized as a direct or indirect employee of
Votorantim Cimentos. Third parties usually include customers
and visitors to the company’s units (whether specifically invited
or not). They also include drivers and passengers, involved in
off-site accidents with company vehicles, but only in the case
of negligence by the company.The number of fatalities includes
indirect employees, and events inside and outside the
company’s premises.
2010
2011
2012
Safety is a top priority for us and is integrated
in our Sustainability Principles. The Safety Committee
is responsible for the governance of safety issues,
including the management of safety indicators and
Safety is a top
priority for
management
initiatives, and is linked to the senior management
team of VC.
Our Safety Management System covers a large
number of initiatives in safety education, engagement
and communication, as follows:
• Preliminary Risk Analysis (PRA) - this is used to
identify dangerous situations during the execution
of activities.
72
• Incident Register - this is used to record situations
• Management of Third-Parties - we have a project
or conditions that could lead to more accidents.
to strengthen the monitoring of the occupational
risks in the activities carried out by third-party
• Accident Prevention Day (DIPAT) - this sets aside
service providers.
a time during which the employees of each unit are
mobilized to talk about security.
• Management Walking in the Area (GANA) this puts the management in closer contact with the
Right to refuse
operational team. Every Friday, the managers of the
An employee who does not feel qualified,
industrial plants go into the field to talk to the teams,
trained or in a condition to be able to
to identify potential risks and discuss opportunities
perform a certain task, can refuse to do
for improvements in safety.
so. The right to refuse not only exists on
paper, but is also encouraged in practice,
• Movement Alert - this function operates
on a daily basis, through communication
a communication channel dedicated to safety in
actions with employees and training for
industrial units, providing information on safety
managers. In 2012, 2,795 employees
standards and and issuing advice advice to avoid
exercised their right to refuse.
exposure to risk.
• The Internal Commission for Accident Prevention
(CIPAs) - this is composed of employees of all units
who are involved in the routine matters of health
and safety.
• Security Minute – during this period every day before
the beginning of each shift, employees assemble to talk
about safety.
• With VC - safety is a frequent topic of conversation
(in web conferencing) between the president and
the employees.
• Training in safety - for managers, we have the School
of Health and Safety at the Votorantim Academy of
Excellence. The School is focused on strengthening the
concepts and practices in the management of health
and safety, principally among general and middle
managers. There were 184 participants during the year.
• Security of Company Property - we provide training
for the security team (outsourced staff), with whom we
discuss issues relating to human rights.
• Meritocracy - we adopt strategies that associate the
variable remuneration of managers and teams with
good safety performance.
73
GRI
LA8
Health and Quality of Life
The health and quality of life of our employees
are priority issues in our HR strategy. We have
developed a “More Life” program, which takes
actions to stimulate initiatives, on a day-to-day
basis, that focus on creating a healthy environment
that will contribute to people’s well-being. These
initiatives cover topics such as healthy eating,
ergonomics, prevention of cardiovascular risks,
women’s health, sports, etc.
The program is divided into four aspects:
Health
• Health campaigns targeted at employees
and their families.
• Nutrition advice provided by a specialized
professional.
• The competition “Who Loses Wins”, dedicated
to weight loss, with the supervision of a dietician.
• Flu immunization program.
• Acupuncture.
• The “More Life” event, which seeks to raise
awareness of health matters among employees
and contractors, as well as family members, with
explorations of: the control of chronic diseases
such as diabetes and high blood pressure;
physical condition; and mammography.
74
• Support for Pregnant Women program - we
encourage pre-natal consultations and offer
monitoring by the plant’s medical unit. Future
mothers receive a booklet with information about
the pregnancy period along with baby-care.
Family
We organize programs of visits to the company
(under the Open Doors program), aiming to bring
the employees’ families into closer contact with
their work. We also hold social and integration
events and give lectures on financial education
and household budgets.
Movement
We take actions to encourage sports activity and to
prevent situations that lead to repetitive strain injuries.
We offer occupational gymnastics and quick massages,
in addition to organized group activities such as running
groups, championships, walks and excursions. There
are also grants for paying the fees for private gyms.
Culture
Our activities include: the distribution of the
local cultural schedules of the cities where we
have operations; establishment of libraries in our
units; private movie screenings; and the provision
of discounts on movie and theater tickets.
Local Development
In 2012, VC invested R$ 17.2 million in social projects (cultural,
sporting and work-related), distributed geographically as follows:
In 2012 we invested R$ 17 million in social projects.
In VC North America (VCNA) we have the Open
House program where the families of employees
and members of the local community visit the plants.
GRI
EC1
GRI
EC1
SOCIAL INVESTMENT BY REGION
SOCIAL INVESTMENT BY CATEGORY
3%
3%
54%
36%
19%
19%
7%
10%
17%
4%
28%
Community
Engagement and
Development
Education
Culture
Sport
Work
Via (Way)*
Management
* Support for projects to improve the quality of life of children
and adolescents and to strengthen the administrative agencies
in the area (Councils and Funds).
75
Focus Areas for our Social Investment
• Education - Improving the quality of education
GRI
SO1
Engagement with Stakeholders
In 2012, VC developed 26 stakeholder engagement
through projects that complement and strengthen
plans, to manage the impacts of our operations on
the role of schools, contributing to the expansion
the relations with the strategic stakeholders of the
of opportunities for youth development.
plants in Cantagalo (RJ), Corumbá (MS), Laranjeiras
(SE), Salto de Pirapora (SP), Sobradinho (DF), Sobral
• Culture - Promoting cultural democratization
by supporting projects that increase access of
(CE) and Xambioá (TO). Engemix developed a plan for
stakeholder engagement at its plant in Jaguaré (SP).
children and youth to cultural production of all
artistic disciplines: visual arts, performing arts,
In terms of results, a good example is the plan made
film and video, literature, music and heritage.
by our plant in Sobral (CE). The main objective was
to disseminate information to both employees and
• Sport - Educating youth through sports activities
the local community about our production processes
of all types, strengthening leadership skills and
and their emissions, providing clarification and, in this
teamwork, and valuing school and family life.
way, contributing to improving the company’s image.
• Work –Enhancing the inclusion of, qualified
Through our existing Open Doors program, the plant
young people in the workplace, by supporting
management had the opportunity to clarify and talk
their training and the establishment of connections
about the subject with young people and community
between their interests and market opportunities.
representatives. The visit, which previously lasted an
hour, was extended to six hours, and covered the
• Via (Way) - Providing support for projects
there was an increase of 25% in the participants’
and adolescents in vulnerable situations and
knowledge about our operations (assessed through
which strengthen the administrative agencies
before and after questionnaires).
in this area (councils and funds).
• Stakeholder Engagement/Community Councils Developing communities through a participatory
process that has the goals of increasing social
capital, and encouraging economic dynamism
and the sustainable use of local natural resources.
76
entire plant operation. After the visit, we found that
which improve the quality of life of children
Community Advisory Panels
We have fostered the formation of Community Advisory Panels
in the municipalities in which we operate, aiming to create forums
to interact and engage with local communities to find solutions
to local issues. The Councils are made up of community leaders,
representatives of business, and local government.
We ended the year with nine Community Advisory Panels
established 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)
and Imbituba (SC).
Sustainable Primavera
Primavera is a municipality with just over 10,000 inhabitants,
located in the northeastern part of the State of Pará. It is
an extremely poor region, with one of Brazil’s lowest values
on the Human Development Index (HDI). In 2011, we began
studies to build a new plant in the municipality, scheduled
to go into operation in 2014, with an annual production
capacity of 1.2 million tons of cement.
Later that year, when plant construction got underway,
we entered into an agreement with the local government,
The Councils meet in order to identify opportunities, to debate,
and to find solutions to critical issues in the municipality and the
region. Working together, the Council drafts an agenda to promote
community development, determining the actions in priority areas
such as education, culture and entrepreneurship, among others.
In Imbituba (SC), for example, the Community Advisory Panel,
set up in 2011, prepared a strategic plan for tourism development,
and defined specific actions and responsibilities for various social
groups. “The Community Advisory Panel provides guidelines
for some sectors of society to optimize their work and thereby
encourage increasing progress in our region,” said Abraham S.
Medeiros Filho, president of Imbituba’s Education Cooperative
and a member of the municipality’s Community Council.
In addition to generating benefits for the communities,
the Community Advisory Panels are important to VC for
contributing to, among other things, prioritizing our private
social investment and guiding the allocation of resources
to projects aligned to the needs of the communities.
committing ourselves to invest R$ 8 million over five years,
in projects that would be selected as priorities by the
community itself, based on socioeconomic studies that
would be conducted beforehand to identify the major
needs of the municipality.
Known as Sustainable Primavera, this initiative is
part of the umbrella program “Support for Municipal
Management”, developed by the Votorantim Institute,
which aims to provide broad assistance to municipalities
in the preparation of projects for improvements in
infrastructure, in modernization, and in the efficiency
of public administration.
Among the activities carried out in Primavera in
2012 were the preparation of a Master Plan and the
implementation of the Program for the Modernization
of Public Administration. This latter program provided
support to the municipality in the identification and
resolution of critical issues in fiscal and administrative
matters, along with essential services such as health,
education and social assistance.
In this process, we determined which investments would
be made in the coming years, in projects such as the
renovation and expansion of schools and health facilities,
the modernization of the city center and the promotion
of family farming, among others.
77
• Votorantim Partnership for Education
Training of the Local Workforce
This program mobilizes employees, communities
We developed two training programs for young
and government bodies, in order order to make
people in our communities: the “Future in Our
education a priority on the local agenda. In 2012
Hands”program, which trains employees for the
the following municipalities benefited from this
construction industry, and the “Evolving” program.
program: Paulista (PE), Sobradinho (DF), Itapeva
The latter provides technical training in industrial
(SP), Laranjeiras (SE), Primavera (PA), Rio Branco
maintenance (mechanical, electrical and mining)
do Sul (PR), Sobral (CE) and Xambioá (TO).
to young people from low-income backgrounds.
These courses were developed in partnership
with educational institutions such as SENAI and
CEFET, which, besides giving training, also provide
support to young people in entering the labor
GRI
HR2,HR5,
HR6,HR7
training 421 young people in ten municipalities.
We seek to establish long-term partnerships
with our suppliers and to promote closer relations
market, either in the Votorantim Group or in other
companies. In 2012, we completed 12 courses,
Supplier Management
1,2,4,5
with those companies that also have this perspective.
This means that before entering into such relationships
we take a close look at the issues, relating to the
business of these companies that could bring risks
Other Social Investment Actions Taken
to our reputation and our business.
We have an investment strategy focused on the social
To administer this process, in 2012, we launched
development of the communities where we operate.
our “Institutional Policy for Contracting Local Suppliers”,
In this work, we seek to strengthen the role of social
and then implemented these practices in all of our
actors in search of alternatives for improving quality
units, thereby bringing discipline to the way they
of life, strengthening social transformation.
were put into effect.
In late 2012, we supported nearly 80 projects
in 25 counties in all regions of Brazil, with more
than 100,000 people benefiting directly.
We highlight the following initiatives:
• “Via (Way)”
This is a corporate program, coordinated by
the Votorantim Institute, which guides us in the
allocation of tax incentive resources to the Municipal
Funds for the Rights of Children and Adolescents.
In 2012, our donations totaled R$ 735,037.00.
78
Our social
investments are
focused on the
development of the
communities where
we have operations
During the year we hired 139 suppliers (34%) in
Approximately 71% of our critical suppliers were
municipalities where we had plants, either installed
evaluated and approved under this policy in 2012.
or under construction. Of these, 47% of the contracts
The goal is to reach 100% by the end of 2013.
included criteria for, or an evaluation of, human rights.
Moreover, we have set a goal of having 100%
of critical suppliers with a score exceeding 70%.
We reviewed the management procedures and
We have already achieved 66% of this goal.
implemented the process for the approval of critical
suppliers, including those working full-time in our
This methodology has been disseminated throughout
plants, both those most relevant from a financial
the company. To date we have implemented the policy
point of view and those with the greatest potential
in 89% of our manufacturing units, in the engagement
to impact on our activities. We defined five groups
and training of the supplier management teams, and
of indicators health, safety and environment; quality
the measuring and monitoring of indicators.
of service provided; quality of service contracted;
personnel management; and operational
Furthermore, we have standardized our
infrastructure. We assigned a weight (%) to each
contracts which include clauses of compliance
group of indicators, so that the final score reflected
with environmental and labor laws and respect
these issues. The target is to work only with
for human rights, including the prohibition of the
suppliers with a score higher than 70%.
use of child labor and workers in slave-like conditions.
Additionally, last year, we implemented the automatic
In the case of “Health, Safety and Environment”, which
blocking of the registration of suppliers that are
is an important factor (20%) in the composition of the
“blacklisted” by the Ministry of Labor and IBAMA,
score, for example, it is mandatory to obey Votorantim
the Brazilian Institute for the Environment and
Cimentos’s rules for health, safety and environmental
Renewable Natural Resources.
issues, which go beyond legal requirements.
Cubatão (SP) Plant
79
Employee Development
GRI
LA1
We have made progress in our plan to expand
In order to prepare the company for the future,
our business in Brazil and abroad. This progress
we focus on attracting and retaining people through
brings challenges for the management and at
specific programs that promote skill development,
the same time, opportunities for more than
meritocracy and career development within
12,000 employees who work with us, as well
the organization. We also invest also in initiatives
as for local pools of potential employees.
to ensure a pleasant working environment where
people feel motivated and satisfied.
GRI
LA1
Number of Own Employees by Category
Own Employees
Salaried Employees
Hourly-paid Staff
Trainees
Total Own Employees
Total Own Employees VCNA
Interns and Apprentices
Interns and Summer Interns
Apprentice
Total Interns and Apprentices
General
Total Workforce
Total
2010
7,756
2011
8,349
61
7,817
2,937
2010
217
69
286
2010
8,103
11,040
13
8,362
1,251
2011
281
104
385
2011
8,747
9,998
2012
9,339
21
9,360
2,717
2012
339
155
494
2012
9,854
12,571
Number of Own Employees by Category
GRI
LA1
9,360
8,362
8,349
9,339
13
Salaried
2011
Only VC Brazil
80
21
Trainees
Employees
We seek to
continuously build a
culture of excellence in
people management
Total Own
Employees
2012
GRI
LA12
Human Resources Policies
and Management
GRI
LA2,LA3
Attracting and Retaining Talent
Despite the current full employment in the sector
The Votorantim Development System (SDV)
is a corporate system that promotes, supports and
accelerates the development of VC employees, in an
integrated manner, including remuneration policies,
promotions, and training and career opportunities
within the organization.
in Brazil, companies are experiencing turnover rates
above historical averages. In Votorantim Cimentos,
the rate is high, at 22,6%. Management practices
become even more challenging in this situation
and we have achieved good results, especially
in the attraction and retention of employees
in management positions.
Through the SDV, we seek to build a culture
of excellence in people management, based on our
values, management beliefs and business strategies,
ensuring the best use of our human capital and
resources for growth and succession plans.
The goals and objectives for the year are passed
down by senior management to the operational
areas, aligning and engaging our teams to face the
challenge of growing with sustainable results. In 2012,
in addition to economic and financial indicators, the
SDV included indicators relating to health and safety,
the environment, customer satisfaction and working
climate. Performing well in these categories is also
linked to our system of meritocracy.
The basic premise of our strategy is meritocracy.
The total remuneration package consists of a fixed
salary and a variable portion that relates to the
performance achieved and applies to employees
and managers. The fixed salary is in line with the
market average and is monitored through salary
surveys. When added to the variable portion, total
earnings are above the market average, ensuring
the competitiveness of our remuneration policy.
Our benefits package is another attractive feature.
In addition to the basic benefits (medical and dental
care, food, transportation, pension plan and life
insurance), employees receive subsidies for medicines
and children’s school supplies and also have access
One of the main tools of the SDV is the evaluation
cycle, where the performance of and outlook for
employees are analyzed in a transparent process
that encourages self-reflection and dialogue between
leaders and the led.
Based on the results, an Individual Development
Plan (IDP) is prepared for each professional. The IDP
summarizes the skills that the employee needs
to develop as well as the activities and training
necessary to advance in his/her career.
to the Personal Support Program, which offers a wide
range assistance services.
The total cost of employee benefits was approximately
R$ 220 million in 2012.
Meritocracy is our measure for career opportunities.
The results of the evaluation cycle, which is part
of the SDV, are discussed by the Human Resources
Management Committees, thereby allowing us
to know our employees better and to plan their
career paths.
The filling of vacancies, in all areas and units,
is done primarily through internal recruitment,
under the “Movement” program. Only after
having exhausted all the possibilities for internal
solutions do we resort to external recruitment.
81
A highlight of the year was the launch of the project Employee Value Proposition (EVP), aiming to prepare a “value proposition”
to be offered to candidates for key positions.
GRI
LA2
Total Number and Turnover
of Employees by Age Range,
Gender and Region
Employees
Total Employees
at 12/31/2012
(*)
Employees
Dismissed in
2011
Turnover
Region
Age Range
Male
Female
Average at
company
2012
Brasil
Other
Countries
Under 30
years
30-50
years
Over 50
years
%
%
Years
9,854
9,854
-
3,448
5,550
856
86%
14%
5.6
2,231
22.6%
2,231
22.6%
-
1,096
32%
1,033
19%
102
12%
81%
-
19%
-
2.8
-
(*) Own + Interns + Apprentices + Seasonal Workers
Only VC Brazil
Skills Development Map
VID as a whole has a process to identify strategic and critical skills in the units, strategic and critical skills, primarily for technical
functions, so we can invest more aggressively in the development of our employees. In 2012, we prepared a Skills Development
Map for 516 people in the areas of maintenance, CAPEX, the environment, Human and Organizational Development (HOD),
health and safety, and sustainability. Based on these maps, we developed pathways for employees to acquire knowledge
and set career plans.
Cimesa (SE) Plant
82
GRI
LA10
Corporate Education and Training
In Votorantim Cimentos, technical training
is driven by Skill Matrices that make it possible
to identify needs for training and recycling as
well as the skill requirements of new projects.
The planning of these needs is centralized
in the Annual Training Plan.
One of the most prominent programs in the
Academy is the “School of Challenges”, where we
select people with the potential to act on important
company projects and offer them development plans.
Part of the program, for example, is the module
on the “Trends in construction methods for the next
20 years.” In this module, the employees are led
to reflect on the future, considering the economic,
In 2012, we began to restructure our corporate
education system with the objective of furthering
the continuous and pragmatic development
of our employees.
social, environmental and technological aspects,
among others, that may impact on our business.
Also in 2012, we expanded the Management
Skills Program, which applies to all of VC’s
All training is coordinated with the Votorantim
Academy of Excellence, our corporate university,
so that these investments are focused on those
issues which are essential to VC’s strategy to grow
with sustainable results.
144 managers, to include leadership training
modules for all of our business activities. This
approach prepares managers to foster a good
working atmosphere and motivate their teams,
thereby creating good examples to be followed.
In the case of the Cement Division the training also
Sempre em linha com a Academia de Excelência,
universidade corporativa do grupo Votorantim
para que os investimentos foquem em temas
includes modules to increase technical knowledge
in mining, processes, maintenance, quality and
environmental issues.
essenciais para a estratégia da VC de crescer
com resultados sustentáveis.
GRI
LA10
Calculation of the average number of hours of training per year, per
employee, and per employee category
2010
2011
2012
Director / President
-
-
11.9
Manager
-
-
30.7
Coordinator/Consultant
-
-
7.8
Technician/Analyst/Supervisor
-
-
10.6
Trainees
-
-
203.2
Operator
-
-
195.8
Intern
-
-
1.2
Apprentice
-
-
0.0
Average
-
-
57.7
Only VC Brazil
83
Diversity
As one of the foundations of our meritocracy we seek
to ensure equal conditions for all employees to develop
their careers within the company.
With regard to women, we grant maternity leave for six
months and have a support program for pregnant women,
focused on raising awareness about health care and nutrition.
We also promote the inclusion of people with disabilities.
With the support of ISocial, a specialized consulting firm,
we train our HR employees, occupational physicians, safety
engineers and managers in this area, strengthening the processes
behind the recruitment, development and retention of these
employees. In late 2012, we had 137 people with disabilities
working in the company.
Internal Communication
We value dialogue and feedback and have established processes
and channels of direct communication to bring together managers
and employees. In 2012, we maintained our focus on disseminating
our management beliefs, launched in 2011, with the aim of raising
awareness of them and encouraging changes in behavior, in order
to align with our strategies in areas such as health and safety,
the environment and customer satisfaction.
In addition to meetings between managers and teams, we maintain
a set of internal communication channels to ensure the continuous
flow of information to employees.
Every quarter, the president of Votorantim Cimentos, via a
web conference, talks with employees from various units of the
company throughout Brazil. At these meetings, called “With VC”,
the company’s results are communicated, the prospects and the
challenges are discussed and information is presented on programs
and corporate projects. The president responds to questions from
employees, sent by SMS or e-mail. When there is no further time
to answer all the questions, they are published in the next issue
of the company newspaper.
84
Highlights in Personnel Management
GRI
LA4,HR5
In 2012, we can highlight the following:
Relations with Trade Unions
Trade unions have a positive role to play in labor
relations and we maintain an open dialogue with
• We paid R$ 5.296 billion (42% of income) in 2012
to our employees, in the form of salary (fixed and
3
variable) and benefits.
the unions representing our employees.
Respect for the free association of employees
with unions is explicitly mentioned in our Code
• We evaluated 12,571 employees, including mangers
and operational area employees, under the SDV.
of Conduct. The collective bargaining process
includes representatives of the trade unions that
represent our workers. The results of negotiations
• Between 65% and 70% of leadership positions were
filled internally.
are disseminated to employees through our internal
communication channels.
• 9,856 employees underwent technical and leadership training,
totaling 1,446,956 hours of training during the year.
Cantagalo (RJ) Plant
85
Risk Management
GRI
4.11
IN 2012 WE MADE GOOD
PROGRESS IN BUILDING OUR
RISK MANAGEMENT SYSTEM
New Steps in Risk
Management
risk evaluation cycle and are made clear
to management. The main processes considered
are those related to the business-related
Votorantim Cimentos began investing in the
development of its risk management area in
2007. The area’s main objective is to implement
policies and methods to enable the business
divisions to manage the risks which could impact
the company’s strategy, with transparency
and proper governance.
activities and areas: sales, purchasing,
distribution, assets and liabilities, investments,
inventory and costs, tax, legal, accounting,
consolidation and reporting, treasury, etc.
The areas responsible for these processes
prepare monthly self-assessment reports to
evidence the effectiveness of their controls.
The main risks impacting the long-term goals,
operations and regulatory compliance have
been identified and are the subject of regular
discussions between managers and directors.
Actions on risks are set by, reported to and
monitored by the Risk Committee to ensure
their effective implementation
Since 2011, the company has carried
out quarterly audits of its internal controls,
according to a methodology developed by the
Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Our controls
structure is audited according to the AT 501
standard published by the American Institute
of Certified Public Accountants (AICPA).
Operational Risks and
Internal Controls
In 2012 we revisited the processes related
to our operations’ environmental issues. We
Votorantim Cimentos has invested substantially
in the design of business processes and systems
to ensure that business relationships with
customers, suppliers and other stakeholders are
governed by clear definitions of responsibilities.
identified the improvements and investments
required to obtain the level of excellence in
managing both compliance and conformity
with the voluntary commitments assumed
under the Cement Sustainability Initiative (CSI).
In addition to the publication of the financial
statements, the internal control environment
has been enhanced with the definition of a set
of controls that are continually reassessed
to ensure that new processes, operations
and business scenarios are covered in our
Risk Management
87
Strategic Risks
Risks and Opportunities
In 2012 we made a major reassessment of the
VC’s management of risks and opportunities
critical risks that could impact the company’s
gives priority to the pursuit of business value
business strategy and sustainability. The analysis of
and performance in a dynamic environment
the impact of these risks on the company’s strategy
in which sustainability issues will have increasing
and business continuity is measured and monitored
relevance for business continuity.
using key risk indicators (KRIs). Futhermore, the
monitoring of the implementation of risk mitigation
The planning of our initiatives and investment projects
actions is discussed in depth by the Risk Committee.
takes into account both internal assessments and also
the projects and trends under discussion by government
and society, in order to anticipate the preparation of
the company for new legal requirements. This aspect
becomes even more important as we proceed with
our process of rapid expansion.
88
With the support of our
risk management area
we seek to prepare
the company for an
increasingly volatile
business environment
VC strictly complies with the terms of reference
expanded as our business grows. For this reason
for preparation of environmental impact studies,
both these types of waste are considered strategic
which require the evaluation of indigenous and
inputs in our range of risks and opportunities.
traditional communities.
Our next challenge in the risk management area
Risk management can provide us with opportunities
is to replicate our methodology for the recently
for new business and sustainable solutions. One
acquired overseas units. We intend to raise the level
example is the issue of waste. Although, on the one
of risk management at these overseas plants to the
hand, waste can represent an environmental hazard,
same standard of excellence that we seek in Brazil,
on the other, it can be used in cement production
and, by working in partnership, also incorporate
as an energy source in co-processing. We are now
in Brazil the best practices identified in these
prepared to expand the use of this technique
new markets.
in our plants. Also, the use of recycled raw materials
for the production of clinker, such as steel-making
slag, is an option which in the future will be
Risk Management
89
Vision of the
Future and Trends
WE WILL CONTINUE WITH
OUR STRATEGY TO EXPAND
PRODUCTION AND OUR
INTERNATIONAL NETWORK
Itaú de Minas (MG)Plant
Economic Scenario
We believe that 2013 will present a complex global
At a global level, the demand for raw materials is
economic environment, but we remain optimistic.
forecast to continue growing. According to the World
Business Council for Sustainable Development (WBCSD),
The measures to stimulate industry announced
the world population in 2010 was 6 billion inhabitants,
by the Brazilian government in 2012, were a major
with around 3 billion (50%) living in urban areas. For 2050,
breakthrough in terms of support for the industrial
WBCSD projects that the world population will reach
development of the country. The measures taken, such
9 billion people, with about six billion (70%) living in
as lowering interest rates, repositioning the exchange
cities. In addition, we expect that the U.S. economy
rate, issuing new legislation on ports, taking measures
will continue on its route to recovery, the economies
to prevent tax wars between the Brazilian states,
of the eurozone will show signs of improvement and
and reducing tax in general, demonstrated the
that China and India, along with other emerging
government’s concern with stimulating industry growth
countries, will continue to grow strongly.
and increasing its competitiveness. We believe that the
main sectors of society in Brazil are converging strongly
in order to return to a healthy and sustainable level
of growth for the country.
Considering the various industry sectors, we are
most optimistic about infrastructure: there are huge
opportunities in Brazil, for example the World Cup in 2014
and the Olympic Games in 2016. The expectations for
2013 include a qualitative change in the growth of the
construction sector. Firstly, the availability of housing credit
should continue to be healthy and, secondly, government
initiatives to accelerate the package of concessions for
We are prepared
for the coming
years, which will
be challenging ones
infrastructure investment should stimulate the continuance
of the current cycle of growth in the sector.
Vision of the Future
91
Considering this overall context, we intend to continue with
In parallel, we will work on internal initiatives that add
our plan to invest selectively in expansion projects, following
value to the organization, such as: reducing operating costs;
the trend of recent years. We remain steadfast in our goal to
reducing risk; seeking out new opportunities; and increasing
increase the efficiency of our operations, grow our business
the effectiveness of our management systems.
sustainably and reduce financial leveraging, as measured by
net debt/EBITDA, towards our target level. At the same time,
Overall, we want to consolidate our new geographical areas
we will work on internal initiatives that contribute to improved
of operations in Europe, Asia and Africa and continue to grow.
profitability, with a focus on reducing operating costs and
In South America, we have projects for new plants in the region,
increasing the effectiveness of our management systems.
and continue to seek strategic opportunities.
Furthermore, we are constantly searching for synergies and
improvements in our processes, as well as seeking to offer
a product mix that maintains the highest customer satisfaction.
92
Business Segments
For Votorantim Cimentos, the continuation of our strategy to
up the cement plants under construction in Edealina (GO)
expand capacity and increase production volumes, combined
and Primavera (PA).
with the increased internationalization of our business, put us
in a position to meet increases in current demand and further
At a global level, we intend to consolidate our operations
demand from a resumption of growth. Over the next three years,
in Europe, Asia and Africa and continue to grow. In South
we plan to invest R$ 3.7 billion in expansion projects.
America, we have projects for new plants in the region,
and continue to seek strategic opportunities.
In 2013, we will start up operations at a concrete center in
Seropédica (RJ) and complementary products units in Goiânia (GO),
Jaboatão (PE) and Seropédica (RJ). For 2014, we plan to start
Vision of the Future
93
About the Report
GRI
3.1,3.2,
3.3,3.6,3.7,
3.9,3.10,
3.11,3.13
IN 2012, WE ADOPTED THE INTEGRATED
REPORT FORMAT, WHICH INTERRELATES
FINANCIAL, OPERATIONAL, SOCIAL,
AND ENVIRONMENTAL INFORMATION
Since 2005 Votorantim Cimentos has published
With this in mind, this Report covers all of Votorantim
information on its sustainability performance according
Cimentos’s strategies, activities, products, services,
to the requirements of the Cement Sustainability Initiative
projects, operations and business divisions, with the main
(CSI). For 2012 we took a strategic decision to publish
focus on our performance in 2012. The Report covers our
this first report in the format of an integrated report
operations in Brazil and North America (VCNA). To obtain
with the aim of providing a wide range of information
more information on our GRI indicators, please consult
on our strategies and practices.
the section of the Report on GRI Indices/Indicators.
We have structured this Report, for 2012, according
Specific limitations on the scope or boundary of these
to guidelines published by the Global Reporting Initiative
indicators are mentioned throughout the report in the
(GRI). We have also taken into consideration some
form of notes. For indicators relating to the issues of GHG
of the recommendations contained in the provisional
emissions, biodiversity and health and safety, we follow
framework for integrated reporting published in 2012
the guidelines established by Cement Sustainability
by the International Integrated Reporting Council (IIRC).
Initiative CSI.
The IIRC has championed the importance of companies
publishing an integrated report and is working on the
Our Report has been audited by PwC for both the financial
development of a formal framework that aims to serve
and the non-financial data and has also been evaluated by
as a standard for the wider business community.
the Global Reporting Initiative (GRI). A further independent
The essence of an integrated report is presentation of
evaluation was made by Cláudio José Andrade of Relatto
financial and non-financial information in an integrated,
Comunicação e Sustentabilidade Ltda.
cohesive manner, with a clear narrative describing the
sustainability issues embedded in the organization’s
This Report is being published, in its full version,
strategy, market positioning and business activities.
in Portuguese and English. You can also download
the PDF versions, available at http://vcimentos.com.br/
Our goal is to be increasingly transparent and responsible
htms-ptb/Responsabilidade/relatorioSustentabilidade.htm
in our reporting, disclosing our strategies and activities
(portuguese) and http://vcimentos.com.br/htms-enu/
to our principal stakeholder groups and to society in general
Responsabilidade/Ambiental.htm (english).
in a structured manner. Therefore, we will report our annual
information on the economic, social and environmental
aspects of our business in an integrated way.
About the Report
95
Audit
Statement
96
Correlations with the UN
Global Compact Principles
Principle
Pages
Human Rights
1. Respect and protect human rights
2. Prevent human rights violations
31, 78
31, 78
Labor Rights
3. Support freedom of association at work
4. Abolish forced labor
5. Abolish child labor
6. Eliminate discrimination in the workplace
85
31, 43, 78
31, 43, 78
31,43
Environmental Protection
7. Support a precautionary approach to
environmental challenges
8. Promote environmental responsibility
9. Encourage technologies that do not harm
the environment
Anti-Corruption
10. Combat corruption in all its forms
including extortion and bribery
31, 57
31, 57, 60, 62
31, 60, 62
44
Correlations with the UN Global Compact Principles
97
Assurance
Report
Independent auditor's limited assurance report
on the Integrated Report for 2012
To the Board of Directors
Votorantim Cimentos S.A.
São Paulo - SP
Introduction
We have been engaged by Votorantim Cimentos S.A. and its subsidiaries (the "Company") to present our
limited assurance report on the compilation of social and environmental information included in the
Integrated Report for 2012 of Votorantim Cimentos S.A. and its subsidiaries, related to the year ended
December 31, 2012, as well as on the compliance with the requirements established by GRI-G3 for reports
with Application Level A.
Management's responsibility for the
Integrated Report for 2012
The management of the Company is responsible for the preparation and fair presentation of the social and
environmental information included in the Integrated Report for 2012 in accordance with the criteria
described in the Global Reporting Initiative (GRI-G3) for Application Level A, and for such internal
control as it determines is necessary to enable the preparation of information that is free from material
misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express a conclusion on the social and environmental information included in the
Integrated Report for 2012, 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 Federal Accounting Council (CFC), based on the Brazilian standard
NBC TO 3000 - "Assurance Engagements Other than Audit and Review", also issued by 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 social and
environmental information included in the Integrated Report for 2012, taken as a whole, is free from
material misstatement.
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
Company 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 social and environmental
2 de 4
G:\REL\VOTCIM212.REL.MOD
Assurance Report
99
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 social and environmental information included in the Integrated Report for 2012,
other circumstances of the engagement and our consideration of the areas in which significant
misstatements may 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
included in the Integrated Report for 2012;
(b)
understanding the calculation methodology and the procedures adopted for the compilation of indicators
through interviews with the managers in charge of the preparation of the information;
(c)
applying analytical procedures to quantitative information and making inquiries regarding the qualitative
information and its correlation with the indicators disclosed in the Integrated Report for 2012;
(d)
comparing the financial indicators with the financial statements and/or accounting records;
(e)
interviewing the members of management responsible for the information during technical visits to the
following business units: Araçariguama, Cajamar, Jaguaré, Rio Branco, Santa Helena, Corporate - São
Paulo and Corporate – Curitiba;
(f)
verifying, with regard to the units above, the following GRI.G3 indicators selected as the most significant
for each business unit visited:
.
Business unit of Araçariguama:
.. Environmental performance: EN1, EN3, EN4, EN22.
.
Business unit of Cajamar:
.. Environmental performance: EN1, EN3, EN4, EN8, EN21, EN22.
.
Business unit of Jaguaré:
.. Environmental performance: EN1, EN2, EN3, EN4, EN8, EN22.
.
Business units of Rio Branco and Santa Helena:
.. Environmental performance: EN1, EN2, EN3, EN4, EN8, EN20, EN21, EN22.
.
Corporate business unit - São Paulo:
.. Environmental performance: EN28, EN30.
.. Performance referring to labor practices and decent work: LA4, LA7, LA8, LA10.
.. Social performance referring to society: SO3.
.
Corporate business unit - Curitiba:
3 de 4
..
Economic performance: EC1.
..
Environmental performance: EN16, EN17, EN20.
..
Economic performance: EC1.
(g)
verifying
the complianceperformance:
with the requirements
established
..
Environmental
EN16, EN17,
EN20. by GRI-G3 for reports with Application
Level A.
(g)
verifying the compliance with the requirements established by GRI-G3 for reports with Application
EN16, EN17, EN20.
We
believe
Level
A. that the evidence we have obtained is sufficient and appropriate to provide a basis for our
limited assurance conclusion.
uirements established by GRI-G3
reports
Wefor
believe
thatwith
the Application
evidence we have obtained is sufficient and appropriate to provide a basis for our
Scope
limitations
limited and
assurance
conclusion.
obtained is sufficient and appropriate
to provide
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our assurance engagement are substantially less detailed than those
The
procedures
applied
infor
a limited
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and
limitations
applied in a reasonable assurance engagement, the objective of which is the issuance of an opinion on the
social
and environmental
includedengagement
in the Integrated
Report for 2012.
Consequently,
we were
The procedures
applied ininformation
a limited assurance
are substantially
less detailed
than those
unable
reasonable
assurance
that we would
becomeof
aware
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that might
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inobtain
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engagement,
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issuance matters
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a reasonable assurance
engagement,
of Report
which isfor
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If we
social and in
environmental
information
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theobjective
Integrated
2012.
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ssurance engagement are substantially
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had
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gagement, the objective of which
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and
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is the issuance
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If we
n included in the Integrated Report
for 2012.
Consequently,
wewith
werethewe
Integrated
Report
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do not express
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thismight
information.
had performed
an for
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opinion,
have identified other
e that we would become aware matters
of all significant
matters
that
might
be
and possible misstatements in the social and environmental information included in the
ngagement, the objective of which
is the issuance
of
opinion.
If we inherent
Non-financial
datafor
arean
subject
to more
financial
data,
due to the nature and
Integrated
Report
2012.
Therefore,
we do notlimitations
express anthan
opinion
on this
information.
he objective of issuing an opinion,
we might
have
identified
diversity
of the
methods
usedother
to determine, calculate and estimate these data. Qualitative interpretations
n the social and environmentalof
information
included
theand
the relevance,
materiality
of the data
are subject
individual
assumptions
and judgments.
Non-financial
data
are in
subject
toaccuracy
more inherent
limitations
than to
financial
data,
due to the nature
and
e, we do not express an opinionFurthermore,
on this information.
did not used
consider
in our engagement
the data
reported
prior
years, norinterpretations
future
diversity
of thewe
methods
to determine,
calculate and
estimate
thesefor
data.
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projections
and goals.
of the relevance,
materiality and accuracy of the data are subject to individual assumptions and judgments.
e inherent limitations than financial
data, due
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nature
and in our engagement the data reported for prior years, nor future
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wetodid
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rmine, calculate and estimate these
data. Qualitative
Conclusion
projections
and goals.interpretations
racy of the data are subject to individual assumptions and judgments.
our engagement the data reported
foron
prior
nor future
Based
theyears,
procedures
performed, described herein, no matter has come to our attention that causes us
Conclusion
to believe that the social and environmental information included in the Integrated Report for 2012 of
Votorantim
S.A.performed,
and its subsidiaries
not been
compiled,
in allto
material
respects,
incauses us
Based on theCimentos
procedures
describedhas
herein,
no matter
has come
our attention
that
accordance
with
the
specific
of theinformation
Global Reporting
Initiative
(GRI-G3) for
reports
to believe that
the
social
andguidelines
environmental
included
in the Integrated
Report
for with
2012 of
Application
A. S.A. and its subsidiaries has not been compiled, in all material respects, in
Votorantim Level
Cimentos
described herein, no matter hasaccordance
come to our
attention
that
causes
us
with the specific guidelines of the Global Reporting Initiative (GRI-G3) for reports with
mental information included inSão
thePaulo,
Integrated
Report
2012 of
October
2013
Application
Level
A.8th, for
bsidiaries has not been compiled, in all material respects, in
es of the Global Reporting Initiative
(GRI-G3)
for reports
with
São Paulo,
October
8th, 2013
PricewaterhouseCoopers
Auditores Independentes
CRC
2SP000160/O-5
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5
Manuel Luiz da Silva Araújo
Contador CRC 1RJ039600/O-7 "S" SP
4 de 4
4 de 4
Assurance Report
101
GRI Indices /
Indicators
GRI
3.12
GRI Indicators
GRI Description
1. Strategy and Analysis
1.1. Declaration by the President
6
Page
1.2. Key impacts, risks and opportunities
6
2. Organizational Profile
2.1. Name of organization
22
24, 28, 30, 31
2.2. Primary brands, products and/or services
2.3. Operational structure
16, 22, 24
2.4. Location of organization’s headquarters
22
2.5. Geographic presence
22
Page
2.6. Legal nature
22
2.7. Markets served
22, 24
22, 24, 31, 49
2.8. Size of the organization
2.9. Significant changes in the year
6, 24, 25
2.10. Awards
38
3. Report Parameters
3.1. Reporting period
94
3.2. Previous report
94
3.3. Period between reports
94
3.4. Contact information
5
3.5. Definition of content
31
3.6. Report Boundary
24, 94
3.7. Limitations on the scope and boundary of Report
Page
3.8. Basis for preparation of the Report
94
17,22,24
3.9. Data measurement techniques and the bases of calculations
94
3.10. Consequences of restatements of information
5, 94
3.11. Significant changes
5, 94
3.12. GRI summary
104
3.13. External verification
94
GRI Indices / Indicators
Relatório Votorantim Cimentos
103
GRI Indicators
GRI Description
4. Governance, Commitments and Engagement
4.1. Corporate Governance Structure
45
4.2. Identification of principal executives
45
4.3. For organizations that have a unitary board structure, state the
number of independent or non-executive members of the highest
Page
governance body.
45
4.4. Mechanisms for shareholders and employees to provide recommendations
or direction to the highest governance body.
43, 45
4.5 Linkage between compensation for members of the highest
governance body, senior managers, and executives (including departure
This information is strategic.
arrangements) and the organization’s performance (including social
and environmental performance).
4.6. Processes at the highest governance body to avoid conflicts
of interest
43
4.7. Process for determining the qualifications and expertise of the members
of the highest governance body.
4.8. Values, codes and internal principles relevant to economic,
45
Page
environmental, and social performance and the status
of their implementation
40
4.9. Performance of the Board in evaluating
sustainability performance
45
4.10 Processes for evaluating the performance of the highest governance
body, especially with respect to economic, environmental
and social performance
46
4.11. The Precautionary Principle
86
4.12. Charters, principles and initiatives
36
4.13. Membership of associations
36
4.14. List of stakeholders engaged by the organization
31
4.15. Identification of stakeholders
4.16. Stakeholder engagement
Page
31
31
4.17. Key topics and concerns that have been raised through
stakeholder engagement and measures adopted by
the organization
104
31
Relatório Votorantim Industrial
2
PERFORMANCE INDICATORS
Economic Performance
EC1 - Direct economic value generated and distributed, including
revenues, operating costs, employee compensation, donations
and other community investments, retained earnings and payments
to capital providers and governments.
Composition of Value-added (R $ / thousand)
Pages 49 and 75
COMPLETED
2011
2012
11,205,555
12,070,735
65,467
551,553
-1,922
11,269,100
-11,077
12,611,211
2.1) Cost of goods and services sold
-3,767,015
-5,567,590
2.2) Materials, energy, outsourced services and other
-1,973,705
-206,116
Total inputs acquired from third parties
-5,740,720
-5,773,706
5,528,380
6,837,505
-441,055
-558,279
3.2) Amortization of discount
-
-
4) Net value-added produced
1.1) Gross sales of products and services
1.2) Other net operational income (expense)
1.3) Provision for bad debts
Total income
2010
Total inputs acquired from third parties
3) Gross value-added
3.1) Depreciation, amortization and depletion
5,087,325
6,279,226
5) Value-added received by transfers
0
0
5.1) Income from equity investments
311,753
-144,614
5.2) Financial income
Total value-added received by transfers
203,728
515,481
316,496
171,882
5,602,806
6,451,108
7.1) Personnel costs and payroll taxes
7.1.1) Direct remuneration
685,570
540,323
788,039
629,361
7.1.2) Benefits
145,247
158,678
7.2) Taxes, social charges
2,967,973
2,709,736
7.2.1) Federal
1,531,195
1,442,343
7.2.2) State
1,659,819
1,737,549
6) Total value-added available for distribution
7) Distribution of value-added
7.2.3) Municipal
30,575
31,293
-253,616
-501,449
1,041,791
976,142
1,336,534
1,251,760
65,649
84,774
7.4) Remuneration of own capital
907,472
1,616,799
7.4.1) Dividends
288,823
865,505
19,347
-
599,302
5,602,806
751,294
6,451,108
7.2.4) Deferred taxes
7.3) Remuneration of third-party capital
7.3.1) Financial expenses
7.3.2) Rental payments
7.4.2) Participation of non-controlling shareholders
7.4.3) Retained earnings
8) Value-added distributed
3
105
EC2 - Financial implications and other risks and opportunities
for the organization’s activities due to climate change
Financial implications (R $ / thousand)
2010
Table of Contents
COMPLETED
2011
2012
Insurance costs
8,084.23
Other
0.00
Total
Comments:
8,084.23
This is the first reporting year for insurance costs.
Insurance costs can be reported in two ways:
• Insurance against environmental damage resulting from an accident: insurance for property damage and bodily injury caused to third parties.
• Insurance of assets with a provision for flood damage.
VC, in Brazil and abroad, contracts insurance for its operations with first-line insurers. Among the various policy coverage we have
is Flooding, to cover damage to our operations resulting from this risk; and Civil Responsibility (RC) for emergency pollution, which
covers damage to third parties resulting from accidental pollution.
EC3 - Coverage of the liabilities of the company’s defined-benefit
pension plan
Participation of plant employees in pension plans
Table of Contents
2010
COMPLETED
2011
2012
Votorantim Cimentos VOTOPREV + VCNE * (2)
78.0%
81.0%
90.0%
VCNE
82.0%
87.8%
82.2%
2010
2011
Estimated total value of pension plan obligations (R$)
2012
Votorantim Cimentos S / A - Assets
R$168,043,400.60
Votorantim Cimentos S / A - Liabilities
R$165,034,060.80
Votorantim Cement N / NE S / A - Assets
R$7,593,735.92
Votorantim Cement N / NE S / A - Liabilities
R$7,429,988.73
Comments:
The Group offers pension plans to its employees through the Foundation Ermírio Senator José Ermírio de Moraes (FUNSEJEM),
a closed-end, non-profit, private pension company, responsible for the administration of the plans. Established in 1994, the plans
administered by FUNSEJEM are structured in the form of “defined contribution” funds and provide participants with the formation
of a long-term savings fund for retirement, in which both the participating employee and Votorantim make contributions Over the
years the FUNSEJEM has evolved through improvements proposed and approved in the Regulations of the VotorantimPrev Benefit
Plan. In 2012 improvements were made to the Plan and it was disclosed to participants via the website and the Futuro journal.
FUNSEJEM discloses the benefits of pension plans to employees through correspondence, lectures, training by the HOD’s, and also
through the integration meeting. In these meetings, the newly-hired employees can clarify all their doubts and receive a information
kit for FUNSEJEM, containing the Statutes, Regulation of the Votorantim Prev Plan, the Explanatory Booklet and application forms.
As a result the percentage membership of the Plan, after considering turnover, is 90%. Furthermore, in 2012, four videos on the
plan Votorantim Prev Plan were launched on the Group’s website, in the section on financial education and welfare of employees.
They address issues such as the benefits of the plan, contributions, the investment profiles and the tax impacts and are available
on the website. FUNSEJEM also launched an e-learning (distance learning) course Votorantim Prev on the Group training portal.
This is designed for HOD professionals and Foundation partners, for the dissemination of the plan among employees. The HOD
also opened an exclusive portal with operating procedures, forms, and contacts, among others, to facilitate access to information
from the Plan. A relationship area was created to serve the needs of participants and sponsors.
EC4 - Significant financial assistance received from government
Table of Contents
PARTIAL
Report, when significant, an estimate of the financial value added presented on an accrual basis:
tax incentives/credits;
2010
-
2011
During 2012 the following tax incentives were granted: PRODUZIR (ICMS) for the Edealina plant; a reduction
of income tax relating to the Porto Velho plant; and the renewal of the Special Regime of Tax Incentives:
PROMARANHAO (ICMS) for the São Luis plant.
106
2012
The granting of tax incentives in the period represented a tax reduction of R$ 26,946,000.
Comments
This was due to new projects in the years: 2010: obtained 8 tax incentives with respect to AFRMM, ICMS and IRPJ taxes.
2011: obtained 9 tax incentives with respect to AFRMM, ICMS and IRPJ taxes
4
Market Presence
Table of Contents
EC6 - Policy, practices and proportion of spending on locally-based suppliers
at significant locations of operation
NOT ANSWERED
What factors
Does the organization has a policy or common
practices to give preference to local suppliers
for both the organization as a whole and for
specific locations?
What percentage of the budget for
influence the
procurement for significant operating
selection of suppliers
units is spent with local suppliers?
besides geographical
location?
2010
-
-
2011
-
No information
2012
Comments
No
No information is collected
is collected on
on this subject
this subject
To administer this process, in 2012, we launched our Institutional Policy for Contracting Local Suppliers , and then implemented these
practices in all of our units, thereby bringing discipline to the way they were put into effect. During the year 34% of suppliers were local
suppliers in municipalities where we had plants, either installed or under construction.
Table of Contents
COMPLETED
EC7 - Procedures for local hiring and proportion of senior management
hired from the local community at significant locations of operation
There is a global policy
Total number of
Percentage of
senior managers,
senior managers,
or common practices of
Total workers with
of significant
of significant
employing local residents
permanent contracts (LA1)
operating units,
operating units,
in major operating units
Plant
that come from the that come from the
local community
local community
37
92.5%
2010
2011
There is no overall policy
established for hiring local
residents. In this context "local"
means individuals who were
100% of the plants
40
in Brazil
born in, or have a legal right
to reside indefinitely in, the
2012
geographic market of the plant.
Report the definition of senior management
Senior management comprises the positions of general manager, director and president (GS 38 and above)
Comments
5
In 2012 Votorantim Cement began measuring this indicator regarding the procedures for local hiring and proportion of senior
management hired from the local community at significant locations of operation.
Despite not having a formal policy to encourage local hiring, the 37 members of senior management in Brazil are from this local area.
VCNA units were not considered.
Local employees includes those born, and those with a legal right to reside indefinitely (e.g. naturalized citizens, foreigners with
permanent visas), in the same geographic market of the operating unit.
There is no traceability for the years 2010 and 2011, as the information survey began in 2012.
107
Indirect Economic Impacts
EC8 - Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial relations,
in-kind or pro bono activities
Table of Contents
COMPLETED
For the whole of Votorantim Cement in Brazil the following investments were made:
Construction of Highway SCT 486 –Highway Germano Schaffer - Entrance SC 431 – Vidal Ramos – 6,6 km in length, Stretch of Highway SC
341 – Entrance SCT 486 /Entrance 428 – 11 Km in length , SC 428 – Entrance SC 341 – Imbuia – 7 km , Highway Extra Plano – Imbuia –
access to Highway SC 352 – Project to recover and increase capacity – 10 km , containing access points and diversion around urban center
of Imbuia.Total improvements in State Highways – 34,6 km
TIME-TABLE (period) – jul/2011 a jul/2013
Cost – Keep the reference value – R$ 61,250,000
Construction of Highway MT 402 and access points – Stretch of Highway – Entrance MT 010 – Entrance MT 401 – Coxipó-Açu/Sub.
Stretch of Highway Entrance MT010 Km 18 – Stretch No. 1 – 18 km e Stretch No. 2 – 3,62 km, making 21,72 km of new State roads
TIME-TABLE (period) – dec/2011 to jul/2013
Cost – keep the reference value – R$ 29,740,278
Improvements to urban roads in the municipality of Ituporanga (SC) – traffic corridor composed of the roads: Pref. Virgilio Scheller,
Av.João Paulo II, Governador Jorge Lacerda, Leonel Thiesen- stretch of 5,5 km, added to recovery and increase in capacity of Highway SC 110 ,
stretch between Ituporanga e Imbuia, in the urban area of Ituporanga with a length of 7,56 km making atotal of 13.1 km of improvements
in existing roads and highways.
TIME-TABLE (period) – apr/2012 to jul/2013
Cost – keep the reference value – R$ 9,100,000
For all the projects cited the results obtained were the reduction of truck traffic in urban roads, thereby contributing to increasing the safety
and quality of life of these communities
For the VCNA plants:
This type of investment does not normally apply in North America, since it is a responsibility of local government.
Comment:
Votorantim invests in infrastructure projects with the objective of generating public benefits. Votorantim Cimentos has autonomy
in defining these investments which are typically focused on: Construction of highways, and the improvement of urban roads.
The results from the projects described above were: reduction of truck traffic on urban roads and improved quality of life
in the surrounding communities.
The amount invested in 2012 was: R $ 100,090,278
This is the first reporting year for this indicator. There is no information available for comparison.
VCBR: Completion of the work is within the agreed timetable and has been communicated to local communities
VCNA: The costs are stored in the SAP system
ENVIRONMENTAL PERFORMANCE
Materials
EN1 - Materials used by weight or volume
Consumption of Main Materials (million tons)
2010
Page 60
COMPLETED
2011
Cement
Other Business VC
Total volume of materials (million tons)
Comment:
108
2012
41,415,552.93
-
-
30,525,691.18
71,941,244.11
For this indicator we considered different materials for each business. Concrete: sand, gravel, cement and rice husk; Aggregates:
ground limestone, ground gypsum and clay; Complementary Products: ground limestone, ground gypsum, clay, sand, chemical
additives and cements; Cement: ground limestone, ground gypsum, clay, artificial plaster, limestone adt, slag, ash, pozzolan,
contaminated soil, gravel and iron mill scale (Cement Sustainability Initiative and Mineral Products Association).
Under “Other” we considered the following materials: ash, ground gypsum, contaminated soil, gravel, iron mill scale, other (cement).
The element “other (cement)” refers to materials which are not specified in the Environmental Performance Index (EPI) spreadsheet.
6
Materials
EN2 - Percentage of recycled materials used
Recycled materials used (million tons)
2010
Page 60
COMPLETED
2011
Recycled materials used (cement)
2012
265
Raw material substitutes in powder (cement)
(Contaminated soil, iron mill scale, gravel, other) “
1,431,086
The substitute raw materials in the cement grinding mill included:
artificial gypsum, slag and ash.
-
-
Additives (Cement)
25,525
Returned concrete reused
6,742
Aggregates
72,597
Total recycled materials used as inputs
Total raw materials used (EN1)
Percentage of recycled materials used as inputs
Comment
7
4,008,810
5,545,025
71,941,244
8%
VC’s products have a high content of recycled materials. In addition, we use alternative sources such as low carbon fuels and biomass.
For the cement sector, VC has given greater emphasis to the licensing of co-processing for new projects.
The data collected for the Inventory are consolidated and have their Key Performance Indicators (KPIs) generated in the CSI Inventory
spreadsheet, except for the proportion of alternative raw materials, which has its consolidated KPI calculated in an separate spreadsheet.
The amount of waste generated in Engemix was 14,932 tons for PPZ1 and 120,267 tons for PPZ2. These wastes were sent for recycling
and/or reused in the Zero Loss Program (PPZ). These two values for reused materials represent 1.34% of the total volume of concrete
produced in the year (10,066,993 tons).
• PPZ1 - the leftover concrete in the mixer is diluted with additional water and additives, so that the concrete can be reused in other shipments.
• PPZ2 - the leftover concrete which has hardened is crushed and returned to the production process as sustainable concrete.
The measurement of the consumption of sustainable concrete is automated in the VC System. This is also applied in some types
of concrete.
The concrete generated in these two processes meet National and International Quality Standards
109
Energy
Page 56
COMPLETED
EN3 - Direct energy consumption broken down by primary energy source
(Thousand GJ)
Important: The data that makes up this index are obtained from the carbon inventory spreadsheet
Fuel Used
2010
2011
Regular Fuel
60,895,318
Low carbon fuels
Comment
3,819,619
Regular Fuels were: coke, diesel oil, coal, natural gas, gasoline, GLP.B161: G176.
For low carbon fuels were: tire, solid waste (mixed industrial waste), oil 2A (waste oil), liquid waste, ethanol, biomass (biomass content
from low carbon fuels), and other renewables.
In 2012, the price of natural gas fell to a lower level. In order to reduce fuel costs, Suwannee America Cement increased consumption
of natural gas in place of coal. Coal consumption in 2011-2012 declined significantly despite the company’s increased production. This was
due to an increased consumption of natural gas and low carbon fuels in 2012.
Page 56
COMPLETED
EN4 - Indirect energy consumption by primary source (thousand GJ)
Period
2010
2011
Electric power - Own Generation
Electric power - Purchased with incentives
Total Consumption of Indirect Energy
Energy Matrix (EN3 + EN4)
Total Consumption of Energy (Direct + Indirect)
110
2012
997,687
Electric power - General Purchases
2012
11,365,122
0
0
0
12,362,809
2010
0
2011
0
2012
97,189,559
Percentage of Non-Renewable Energy (NRE) in the Matrix
79.4%
Percentage of Renewable Energy (RE) in the Matrix
20.6%
8
Energy
Pages 56 and 58
COMPLETED
EN5 - Energy saved due to improvements in conservation and efficiency (GJ)
Period
2010
2011
2012
(2,014,086)
(4,121,613)
Total energy saved due to improvements in conservation and efficiency
(thousands of GJ)
(485,353)
Replacing the fuel for clinker with pozzolan
(64,800)
Increased efficiency
Name of Initiative/Program
Percentage improvement in efficiency of energy utilized
-0.63%
-0.39%
-2.23%
Replacing the fuel for clinker with pozzolan
Improvement in energy efficiency (%) - EN5
Percentage improvement in efficiency of energy utilized
2010
2011
2012
0.00%
-0.30%
-0.25%
Votorantim Cimentos has been systematically reducing its electricity consumption since 1994, through the adoption of new
technologies:
• Use of precalciner in new plants, reducing fuel consumption and enabling increased replacement of fossil fuels by organic and
industrial waste;
• Use of high efficiency motors;
• Use of frequency inverters in engines with power higher than 250 kW;
• Installation of Roller Mills instead of Ball Mills, in raw milling;
• Installation, since 2006, of Roller Mills instead of Ball Mills, for cement milling;
Comments:
Another very important point is the replacement of clinker by slag or fly ash, of thermoelectric power plant, in cement production.
This practice has been widely used since long ago, around the world and also in Brazil.
It turns out that slag and fly ash are not available in the plants further away from major centers, and then calcining clay is required to
obtain a product called pozzolana, that can also be used in cement production.
Votorantim then developed, based on the acquired operation of the two existing old kilns at Poty Paulista unit, a process for the
production of pozzolana on a large scale, reaching 1000 tons / day. The pozzolana production has no GHG emissions derived from
limestone, GHG emission derived from fuel only, a rate much lower than that presented in clinker production.
Thermal energy consumption in puzzolan production is 27% lower than the production of clinker.
Today VC has 4 pozzolana kilns in operation.
Water
EN8 - Total water withdrawal by source
Withdrawal by source (m³)
2010
Surface water
Underground water
Page 61
COMPLETED
2011
2012
10.117.039
7,818,984
3.970.086
Rainwater
-
Water supply companies
914.667
38,244,810
15.001.792
52,145,301
98,209,095
Effluents from another organization
Vegetable condensate water
Other (underground water for industrial use/other purposes)
Total water withdrawal by source
Comment:
9
0
The comparison of the information on total water withdrawal by source with previous years presents significant differences, since
the management of the compilation of the information has been improved, as from 2012. Quantitative data for source type is not
collected at all plants.
The total value of Underground Water (industrial) and Underground Water (for other purposes) were included in the category
“Other (underground water for industrial use / other purposes).”
111
Biodiversity
EN11 - Location and size of land owned, leased or managed which is in,
or adjacent to, protected areas and also areas of high biodiversity
value which were outside protected areas.
Biome found in the area
Page 68
PARTIAL
Plant located inside conservation
area (UC) (Km ²)
Inside the
conservation area
or adjacent to it
Atlantic Rainforest
Cerrado
Cerrado and Atlantic Rainforest (Transition Zone)
Total inside conservation/protected area
In 2012 we defined the method for gathering information on the location and size of our land (owned, leased or managed) which is in,
or adjacent to, protected areas and also areas of high biodiversity value which were outside protected areas. The software, called IBAT,
includes a database on areas of importance for world biodiversity thus allowing the assessment and mapping of VC’s operations and the
identification of overlaps with areas of high importance for biodiversity. The overall management of this information, using the software,
is carried out by the corporate Environmental area, and the detailing of the identification of overlaps is done by the local unit.
Comment:
In Brazil, 80.43% of the 48 units analyzed had overlaps, and in VCNA, 28.57% of the 34 units analyzed had overlaps. Of these, 57.32%
had overlaps in areas of high biodiversity value. In relation to restoration plans, 10.41% of the 48 units in Brazil that were assessed have
developed plans to restore the affected areas. In VCNA, 100% of the 34 units have restoration plans. The weighted average of units
in Brazil and VCNA with restoration plans is 48%. When we assessed the plants for a Biodiversity Management Plan (BMP) we found
that 5.41% of the 48 units in Brazil had such plans. VCNA has not yet made this assessment. Including the 34 VCNA units the average
number of units that have a BMP is 1.24%.
Various activities were carred out under the umbrella agreement of technical cooperation between VC, SBE (Brazilian Society of Speleology)
and RBMA (Biosphere Reserve of the Atlantic), for example, a survey of environmental assets in one of the areas owned by VC.
More information is available at: http://www.cavernas.org.br/cooperacaotecnica. This indicator is reported in a manner similar to that
of the CSI, as KPI 1 Biodiversity, which is defined as the number of operating units that are located within or adjacent to i) Protected
Areas and ii) Other areas important for biodiversity. The IBAT tool provides information about the position in relation to the protected
area (containing portions of the protected area) and the type of operating unit, which, in this case, are mines.
112
10
COMPLETO
Biodiversity
EN12 - Description of significant impacts of activities, products
and services in protected areas and areas of high biodiversity
value outside protected areas
Page 68
COMPLETED
Major Significant impacts
Report the nature of the
Report the significant direct
Does the
associated with activities,
impacts on the following aspects:
and indirect impacts, either positive
project have
products and services
construction or use of factories
or negative in relation to: species
outside
of the organization
and mines, pollution, introduction
affected; size of impacted areas;
partners?
of invasive species, reduction of
length of time of impacts; reversibility
species, habitat conversion, changes
or irreversibility of the impacts
in ecological processes outside
the natural range of variation
2010
2011
2012
Considering the units
The nature of the impacts cited
VC’s unit in Ribeirão Grande (SP)
that have a Biodiversity
are due to implementation and
has developed a Biodiversity
Management Plan, the impacts
operation of the units, which often
Management Plan. The main negative
identified were: changes
are close to areas of high importance
impacts identified were: the loss of thick
to local aquifer systems;
for biodiversity, as in the case of unit
forest areas and the consequences;
deforestation and removal
Ribeirão Grande. This location of this
changes in plant life in the community;
of natural vegetation;
unit overlaps with an area called
population displacement due to the
increased noise; possible
"Maciço Florestal de Paranapiacaba"
pumping of mine run-off water; changes
loss of natural caves; loss
which is classified as an Important
in riparian vegetation from drained
of habitats in the area of direct
Birdlife Area (IBA ) and is a priority
areas; disturbance of terrestrial fauna;
influence; risk of invasion
area for conservation due to the
changes in the community of wildlife;
by exotic species; risk to
system of springs and streams
changes in the habitat of fish
neighboring ecosystems;
flowing into the Paranapanema
populations. These potential impacts
decrease in richness of
river, according to MMA, 2007.
are being assessed by the unit according
structural species; and
Furthermore, in the surrounding
to 3 monitoring plans. In this same unit,
changes in the indicators
area, within 5 Km, there is an
VC acquired a pilot project “Survey
or the behavior of terrestrial
Environmental Protection Area,
of Environmental Assets”, in an area
species, among others.
"Serra do Mar", and an UNESCO
of more than 300 ha that had originally
World Heritage Site, the Southeast
been in an advanced state of degradation.
Atlantic Rainforest Reserve.
The restoration of forest area was
initiated in 2001, and accompanied
by continuous monitoring and research
studies by university partners. There
has been a notable gradual occupation
of habitats by species of fauna groups
that are being studied and monitored.
Describe the process of collection and compilation of information covering the aspects and the impacts of the operations on the biodiversity
in the area.
2010
11
113
Biodiversity
EN12 - Description of significant impacts of activities, products
and services in protected areas and areas of high biodiversity
value outside protected areas
Page 59
68 E 60
PÁGINAS
COMPLETED
2011
The survey of biodiversity issues is carried out through an environmental impact study, as well as through other types
2012
of surveys conducted by each operating unit.
Comments:
In 2012 Votorantim conducted a survey of recognized high biodiversity areas around its operations and found that over 80% of its
operations in Brazil are in such areas. As a result VC has already started preparing BMPs for these areas and aims to have these plans
for 100% of the units in these situations by 2020. We also started a pilot project in 2012 to survey our environmental assets under
a technical cooperation agreement signed with SBE (Brazilian Society of Speleology) and RBMA (Biosphere Reserve of the Atlantic).
This project consists of the detailed assessment of each of VC’s properties in Ribeirão Grande (SP) in order to enable the preparation
of a Sustainable Land Management Plan (SLMP) for the area in the Atlantic Rainforest. This project aims to integrate the conservation
of biodiversity and ecosystem services into the strategic planning of the organization (providing tools and strategies).
Page 68
EN13 - Habitats protected or restored
Biome
PARTIAL
Total area of the habitat (sq km)
Description of the habitat
10.12
Protected area
-
-
10
-
Atlantic Rainforest
Cerrado
Cerrado and Atlantic Rainforest (Transition zone)
TOTAL
Comments: For this indicator only Vidal Ramos and Porto Velho units were considered.
Page 68
EN14 - Strategies, current actions and future plans for managing impacts
on biodiversity
COMPLETED
1) Explain how the theme ‘Biodiversity’ was discussed or considered in the Environmental Impact Assessment and Environmental
Impact Reports (EIA-Rima).
The Environmental Impact Assessments (EIA) at the plants were carried out in such a way as to allow the environmental assessment of the areas
of influence of the projects, considering the identification and evaluation of impacts and an integrated analysis. In the section of the EIA report
called Diagnostic of the Biotic Environment, there is a description of the flora and fauna, as well as the ecosystems that integrate the two groups.
2) List the methodologies used to determine the risks to biodiversity.
Environmental impact studies
3) What were the targets and objectives established with relation to the theme ‘Biodiversity’?
2020: For 2020 our goal is that 100% of those units with an overlap in an area of high biodiversity importance will have Biodiversity Management
Plans. In addition to maintaining the existing partnership we will look to sign other agreements with NGOs targeting the biodiversity theme.
4) What were the monitoring processes adopted?
Vidal Ramos: We conduct an annual survey to monitor mammals and birds. These groups were selected as a proxy for biodiversity since
there is substantial research on the ecological requirements of these species. The results allow us to assess the impacts on wildlife caused
by the plant operations.
5) Cite the public reports prepared in 2012 that relate to the theme ‘Biodiversity’.
“Vidal Ramos: The monitoring results are entered into the Monitoring Report on Environmental Management of Operations for the years
2008, 2009, 2010 and 2011.
114
12
Biodiversity
Page 68
EN14 - Strategies, current actions and future plans for impacts managing
on biodiversity
COMPLETED
6) Describe the influence of government regulations on the management of risks to biodiversity.
“Vidal Ramos: The list of fauna identified is compared to the list of Brazilian fauna threatened with extinction
(Normative Instruction 03/2003).“
7) Ecosystem Services: Cite the projects undertaken with a focus on identifying the impact/dependence and valuation.
There was no management of this item for the year 2012
Comment:
In 2012 we surveyed the overlaps of our operations with areas of high biodiversity, using the IBAT software, which allowed to
evaluate the proximity of our operations to areas known to be of high biodiversity importance. We have also developed several
projects under a cooperation agreement, signed in 2011, with the Biosphere Reserve of the Atlantic (RBMA) and the Brazilian
Society of Speleology (SBE). More information at: (http://www.cavernas.org.br/cooperacaotecnica), Among these projects was the
publication of a book, The Human Being and the Karst Landscape during the international conference Rio+20, as well as the project
to survey the environmental assets in the pilot area of the Ribeirão Grande plant.
For the preparation and implementation of a Biodiversity Management Plan, the corporate area identifies the units that have an area of
influence that overlap with areas of importance to biodiversity, and then each operational unit is responsible for preparing its own plan.
EN15 - Number of species on the IUCN Red List and national
conservation lists, with habitats in areas affected by operations,
by level of extinction risk
Number of endangered species by extinction risk level:
Table of Contents
COMPLETED
2010
2011
2012
Critically endangered
-
Endangered
-
Vulnerable
-
Near threatened
-
Least concern
-
Note: Classification according to the IUCN Red List.
Não material
Comments
We have not collected data on the number of species on the IUCN Red List and national conservation lists, with habitats
in areas affected by operations, by level of extinction risk. This indicator will be reported in the coming years.
Emissions, Effluents, and Waste
EN16 - Total direct and indirect emissions of greenhouse gases,
by weight (GHG)
Direct GHG emissions (tCO2 eq)
2010
Table of Contents
COMPLETED
2011
Stationary Combustion
6,384,784
Mobile Sources - Owned
562,484
Process
11,828,299
Waste Treatment
0
Soil - Limestone
0
Soil - Nitrogen Fertilizer
0
Other
Total Direct Emissions - Scope 1
Indirect Emissions (tCO2eq)
Electric Power
Total Indirect Emissions - Scope 2
13
2012
0
2010
0
2011
18,775,567
2012
0
0
485,660
485,660
115
EN17 - Other relevant indirect emissions of greenhouse gases, by weight
Other indirect GHG emissions (tCO2 eq)
2010
Table of Contents
COMPLETED
2011
2012
0
0
0
0
0
0
19,261,227
Transportation by third-parties (cargo, goods, etc.)
Total
Total Emissions
Carbon capture
0
Carbon stock
0
Carbon suppression
0
Page 62
PARTIAL
EN18 - Initiatives to reduce emissions of greenhouse gas emissions
and reductions achieved (GHG)
Initiatives in 2010
Projects that generated emission reductions in 2010
Site
Effective reductions
Status
in tCO2 eq/year
VC -
59,485
Awaiting 2nd issue
Hydroelectric plant with existing reservoir
of Certified Emission
Pedra do Cavalo
Reductions (CERs)
Awaiting 2nd issue
2,074
Fuel substitution
VC - Cubatão
Reductions (CERs)
6,562
Plants with the
(corresponding
Energy Efficiency
Ongoing program
to the years 2007
Program
Energy Efficiency
Initiatives 2012
Projects that generate reductions in 2011
to 2010)
Status
in tCO2 eq/year
Site
Waiting 2nd issue
VC 59,485
Pedra do Cavalo
Hydroelectric plant with existing reservoir
Reductions (CERs)
9,829
(corresponding to
VC - Cubatão
the crediting period Project completed
of the project from
Heat Reclaimed
Iniciativas 2012
Projects ongoing in 2012
116
2004 to 2011)
in tCO2 eq/year
Status
Site
UHE in existing reservoir
-
-
-
Heat Reclaim
-
-
-
14
EN18 - Initiatives to reduce emissions of greenhouse gas emissions
and reductions achieved (GHG)
Comments:
Page 62
PARTIAL
Among the factors which reduce the net emissions of CO2/ton kg per ton of cementitious product we can cite the gradual introduction
of pozzolan kilns to replace clinker kilns (the use of pozzolan has a lower heat consumption compared to clinker). The pozzolan kiln consumes
750 kcal/day. With this kiln there is an estimated saving of 30% in thermal consumption compared to the clinker kiln. Saving 64,800 GJ
of energy is equivalent to saving 8,500 tons of coke.
The technology used before 1994 in VC kilns was the kiln with pre-heater, a technology that has a higher thermal consumption than the new
technologies implemented as from that year onwards. The calciner technology has a lower heat consumption and has been constantly upgraded.
The present process has a process yield of 67% (21,100 t fuel/day) which is more efficient compared to the former process yield of 33% (43,550 t
fuel/day) .
Since 2006 six plants have had the efficiency of their production process improved, namely, Cimesa, Xambioá, Santa Helena, Salto, Vidal Ramos
and Cuiabá.
Votorantim Cement currently has 4 pozzolan kilns in operation.
One project, still experimental, which is being undertaken in a St. Marys plant, together with the Canadian government, is dealing with
sequestration of carbon from the atmosphere.
We have projects to reduce the clinker/cement factor, to increase the replacement of conventional fuels with low carbon fossil fuels and biomass,
and to the heat consumption in clinker production and the electric power consumption in cement grinding.
EN19 - Emissions of substances that destroy the ozone layer by weight
Table of Contents
COMPLETED
The indicator was not reported because it was not considered material.
15
117
Table of Contents
COMPLETED
2011
2012
NOx Emissions
29,754.18
34,598.02
SOx Emissions
19,230.92
22,809.86
EN20 - NOx, SOx and other significant air emissions by type and weight
Emissions of NOx, SOx and PM (t)
2010
PM (Particulate Material) Emissions
3,714.26
2,957.53
52,699.36
2011
0.27
60,365.41
2012
0.29
Cadmium (Cd)
0.11
0.15
Thallium (Tl)
0.36
0.45
0.00
2010
0.74
2011
390.70
0.89
2012
289.30
0
53,091
289
Total Emissions of NOx, SOx and PM
Emissions of heavy metals (t)
Mercury (Hg)
Total Emissions of Heavy Metals
Other air emissions (t)
Volatile Organic Compounds (VOC) (or THC)
Total Emissions
2010
The emission values reported in 2012 have risen in absolute terms, part of which is proportional to the organic growth of the company.
However, considering this growth, the amount of emissions should have been much higher. This did not occur because there were major
investments in new technologies, especially related to retrofit, with lower rates of emissions.
Comment:
The significant investments mentioned below are retrofits, that is, a change in technology from electrostatic filters to bag filters. This
change of technology only reduces the emission of particulate matter and has no direct influence on the emission of gases. There has
been a notable reduction in emission (1,300 tons less PM emitted). In 2012, investments were made to retrofit existing filters into bag
filters that provide better efficiency in the process, for the following plants: Pinheiro Machado W1, W2 Itaú de Minas, Rio Negro W1.
In relation to NOx emissions, one of the largest kilns (in terms of productive capacity) commenced operations in 2012, the W5 at our
plant in Salto de Pirapora. Despite having an emissions cleaning system, it is one of the most critical plants for NOx emissions. Several
areas of VC are currently involved in finding a solution to reduce the impacts of this kiln. After the W5 kiln at Salto de Pirapora the next
most critical kiln is the W1 at the Vidal Ramos plant, which has been operating since mid-2011, and thus had the greatest impact only
on the difference in emissions from 2011 to 2012, since it operated for the full year in 2012. In absolute terms the emissions were 4x
higher due to the higher time of operation (2x) and higher production (3x). For these two plants, and a third plant, that together have
the greatest impact on these parameters, VC has planned investments for 2013 and 2014.
In the case of SOx, the same comment for NOx for the W1 kiln at Vidal Ramos applies. This kiln is also one of the most critical in this
parameter. This plant alone contributed about 3,000 tons of SOx emissions in 2012, compared to about 800 tons in 2011 (also due to
increased operating time and output). The difficulty in reducing SOx emissions, especially in this plant, is due to the presence of pyrite
in the raw material (compound containing sulfur). Among all the kilns, the largest contributor of SOx is Kiln No. 3 at the Cimesa plant.
CAPEX investments are planned for these kilns in 2014 and 2013, respectively. In addition, a kiln at the Bowmanville plant in North
America emits significant amounts of SOx. Research work will begin on this case in 2013.
EN21 - Total water discharge by quality and destination
Discharge of water, by treatment (m³)
2010
Table of Contents
PARTIAL
2011
Waste-water with treatment
Waste-water without the need for treatment
Total water discharged
Discharge of water, by destination (m³)
2012
1,253,965
0
2010
0
2011
1,253,965
2012
Ocean / Sea
-
Rivers
1,253,965
Lakes
-
Other
Total water discharged
0
0
1,253,965
Comment: Quantitative data for source type is not collected at all plants.
118
16
2010
0,00
Page 62
COMPLETED
2011
0,00
2012
106,575.16
Composting
-
-
-
Internal reuse/recycling
-
-
-
External reuse/recycling with value-added
-
-
-
External reuse/recycling without value-added
-
-
-
Recovery
Incineration (or use as fuel)
-
-
-
Co-processed/Refined
-
-
-
Landfill
-
-
-
Industrial landfill
-
-
-
Waste injected underground
-
-
-
Others - directed to specific uses
-
-
-
0,00
0,00
106,575.16
22,581.34
Composting
-
-
-
-
-
-
-
-
-
-
-
-
Recovery
-
-
-
-
-
-
-
-
-
Landfill
-
-
-
Industrial landfill
-
-
-
-
-
-
-
-
-
0,00
0,00
22,581.34
129,156.51
Composting
-
-
-
-
-
-
-
-
-
-
-
-
Recovery
-
-
-
-
-
-
-
-
-
Landfill
-
-
-
Industrial landfill
-
-
-
-
-
-
-
-
-
Unclassified disposal
-
-
129,156.51
EN22 - Total weight of waste by type and disposal method
Total Weight of Waste (tons)
NON-HAZARDOUS waste disposal
HAZARDOUS waste disposal
TOTAL waste disposal
Comment:
17
Data for “Total Amount” is consolidated, covering all the business segments.
VC does not have full management control over the disposal of waste generated by its plants. Achieving full control is one of the goals
for the coming years.
119
EN23 - Total number and volume of significant spills
Significant spills
2010
2011
Table of Contents
PARTIAL
2012
Plant
Oil
3
Quantity
Oil
4.5
Cubic meters (m³)
Chemicals
4
Quantity
Chemicals
2.704
Cubic meters (m³)
Fuels
0
Quantity
Fuels
0
Cubic meters (m³)
Other (please specify)
0
Quantity
Other (please specify)
0
Cubic meters (m³)
Total number
2010
of spills
-
Plant
Total volume
-
Cubic meters (m³)
Total number
2011
of spills
-
Plant
Total volume
-
Cubic meters (m³)
Total number
2012
of spills
Total volume
7
Plant
7.204
Cubic meters (m³)
Report the impacts of significant spills
2010
-
2011
The principal environmental impacts were the contamination of water (rivers and lakes) and the soil of the area
2012
surrounding the wastewater storage basin.
Spills reported in the financial statements
120
2011
2012
Location of spill (Plant)
-
-
0
Spill volume (m³)
-
-
0
Oil - soil
-
-
0
Oil - water surface
-
-
0
Fuel - soil
-
-
0
Fuel - water surface
-
-
0
Waste - soil
-
-
0
Chemicals - water surface
-
-
0
Chemicals - soil
-
-
0
Chemicals - water surface
-
-
0
Other (Specify)
-
-
0
Material
2010
18
Comments
Each VC plant has internal controls for spills that were not previously fully reported to the corporate area, so it is not possible
to compare the trends in indicator. As from 2012 we implemented a standard procedure “Registration and Reporting of Critical
Environmental Events” and the reporting is made through the Environmental Performance Indicator (EPI) worksheet.
For the management of this indicator there is a standard procedure that sets guidelines for the Registration and Reporting of Critical
Environmental Events. It is applicable to all of VC’s plants and contractors and subcontractors where the activities, products, or services
performed could result in critical environmental events.
The events are divided into 6 levels and, depending on the level, there is a different reporting channel.
Products and Services
EN26 - Initiatives to mitigate the environmental impacts of products
and services, and extent of the reduction of impacts
Pages 55, 60 and 92
COMPLETED
Use of Materials
2010
2011
Initiative
Related Quantitative Impacts
-
-
-
-
VCBR: CEMENT: Volta Redonda: Recovery of two
Permanent Preservation Area (one still being
finalized) within the grounds of the factory.
VCNA: CEMENT: Charlevoix: low carbon fuels,
2012
screening of waste landfill for co-processing.
-
Water Use
2010
2011
Initiative
-
-
-
-
VCBR: CEMENT: Cantagalo: Increased reuse
of water consumption (74.09%) with the
transposition of the effluent discharge points
from the oil and water separators, from
mechanical maintenance and the machine
and vehicles workshop, to the water basin
for cooling bearings.
VCNA: CEMENT: St. Marys: Action plan for
2012
19
noise reduction.
-
121
Emissions
Initiative
2010
-
-
2011
-
-
VCNA: CEMENT: Branford: Use of hydrated lime,
use of low carbon fuels, use of artificial gypsum
2012
to replace gypsum, limestone addition.
Effluents
2010
2011
Initiative
-
-
-
-
VCBR: CEMENT: Volta Redonda: Geoenvironmental studies were conducted semiannually in the slag storage area, in order to
evaluate the level of groundwater contamination.
Effluent analysis, Wastewater Treatment
2012
installation and suitability for drinking.
-
Noise Pollution
Initiative
2010
-
-
2011
-
-
VCBR: CEMENT: Santa Cruz: In 2013 we plan
to instal a silencer in the chimney of the mill fan,
which has a noise level of 104 dB at source. With
the installation of this equipment, there is the
possibility of reducing the noise level to 85 dB.
Another project for 2013 is the construction
of a washer for cleaning tires using about
2012
122
40,000 liters of rainwater.
-
20
Waste
Initiative
2010
-
-
2011
-
-
VCBR: COMPLEMENTARY PRODUCTS Cajamar:
Reduction of cement consumption in mortar/
Barueri: Reducing Waste Generation /
CEMENT: Itaú de Minas Civil construction waste
is reused in the production process (EV crusher) /
Poty Paulista: Improvement in the process of
waste disposal, specially in the last two years /
Sobradinho: Reuse of 1,285,432 tons of process
waste (used in co-processing), instead of disposal
in landfills/
Volta Redonda: The Volta Redonda plant
produced only 9,327 tons of cement in 2012.
For such activities, we use water trucks for
wetting internal roads, along with sweepers
Capivari de Baixo: Reduced consumption
2012
Comment:
21
of coal per ton of dried ash.
-
The management of initiatives to mitigate the environmental impacts of products and services and the extent of reduction of these
impacts is measured by specific indicators for each of the themes presented above, for the lines of business (Cement, Engemix,
Aggregates and Complementary).
Success story: The Zero Loss Program (ZPP) arose from the need and the opportunity to align the Engemix units with the Votorantim
Group’s management model, specially in regard to its sustainability objectives: - “Being sustainable is to be able to ensure the continuity
and growth of our business in the long-term, anticipating the demands of stakeholders and incorporating them into the company’s
goals.” The objective of the program is to reduce environmental liabilities in the operating units. The volume of discarded concrete is
reduced by a process of stabilization and reuse of the residual concrete, by the recycling of concrete waste in the production and by the
use of Sustainable Aggregate
Votorantim has developed a pozzolan production kiln with large-scale production. The kiln can produce 1,000 tons / day. The production
using pozzolan does not generate CO2 emissions from limestone, only from fuel combustion.
123
EN27 - Percentage of products sold, and their packaging materials,
which are recovered in relation to the total products sold by
category of product.
Products by category
Table of Contents
NOT REPORTED
2010
2011
2012
Plant
Cement
-
-
Cubic meters
Aggregates
-
-
Cubic meters
-
-
Cubic meters
Engemix
-
-
Cubic meters
Other (Specify)
-
-
Cubic meters
Total
0
0
0
Cubic meters
2010
2011
2012
Plant
Cement
-
-
Cubic meters
Aggregates
-
-
Cubic meters
-
-
Cubic meters
Engemix
-
-
Cubic meters
Other (Specify)
-
-
Cubic meters
Total
0
0
0
Packaging recovered
(recycled or reused)
Cubic meters
Percentage of recovered
products
2010
2011
2012
Plant
Cement
-
-
0%
Percentage
Aggregates
-
-
0%
Percentage
-
-
0%
Percentage
Engemix
-
-
0%
Percentage
Other (Specify)
-
-
0%
Percentage
0%
Percentage
Total
Comments:
This is the first year of reporting on this indicator.
No collection of data to report on this indicator.
We have some initiatives, that are in the form of pilot studies, which aim to collect empty cement bags for sustainable disposal.
In 2012, Votorantim Cement initiated a study on the reverse logistics of cement bags, i.e. to provide the sustainable disposal of empty bags
that are currently left at construction sites and with retailers. For this, we have formed the Sustainability committee that is evaluating short
and long-term opportunities. The first step of the project was to identify processes that are feasible for damaged and dirty bags. Some
hypotheses are being studied such as using the bags as a raw material input for the fiber-cement and roofing industries or for co-processing
in cement kilns. Another relevant point is the discussion of the roles and responsibilities of each link in the industry chain in a reverse
logistics system including: paper manufacturer, ABCP, builders, shops, final consumer, cement manufacturer, and government. There are no
short-term actions in progress, but the studies are being finalized prior to taking action with our customers.
In conformity
EN28 - Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with environmental
laws and regulations
Period
2010
COMPLETED
2011
Number of non-monetary sanctions
-
-
33
Total monetary value of significant fines
-
-
3,565,944.76
Legal actions moved through arbitration mechanisms
-
-
0
Comment:
124
Table of Contents
2012
1. Implementation of the new corporate standard.
2. This includes the requests received and amounts paid, including both lawsuits filed and administrative proceedings.
3. VC: The VCNA plants are now included.
4. For this subject, the data began to be published in reports addressed to interested parties from 2012.
22
General
Pages 55 and 56
COMPLETED
EN30 - Total expenditure in investments and expenses for environmental
protection, by type
Environmental investments and expenses (R$)
CAPEX (Investments)
2010
4,416,818
2011
82,918,575
2012
31,690,068
900
0
0
Environmental Management
749,842
12,604,982
6,682,035
Conservation, Reforestation and Biodiversity
595,383
442,480
4,287,468
Environmental Education
335,046
667,425
864,373
1,242,650
59,114,376
18,036,477
Waste Treatment
712,952
1,651,704
230,896
Wastewater Treatment
1,464,911
569,518
2,048,483
0
0
0
Decommissioning/Remediation (soil and water)
0
0
123,908
0
0
0
210,527
6,376,903
6,389,125
27,685,393
0
27,787,572
Environmental insurance
Other Environmental Expenses
OPEX (Expenses)
99,183
225,913
524,545
2,453,041
5,933,265
5,502,292
1,187,583
5,097
490,118
242,328
291,769
805,861
2,101,568
10,978,160
3,292,975
Waste Treatment
960,900
3,063,099
5,939,534
446,427
553,964
1,475,410
0
0
5,026,257
0
0
1,262,195
0
0
0
Other environmental expenses
Total
68,359
6,149,105
2,770,920
10,793,721
110,603,968
59,477,640
100,083
225,913.00
524,545.00
3,202,883
18,538,247.00
12,184,327.00
600,480
932,598.00
5,475,051.00
577,374
959,194.00
1,670,234.00
3,344,218
70,092,536.00
21,329,452.00
Waste Treatment
1,673,852
4,714,803.00
6,170,430.00
1,015,945
2,602,447.00
2,940,321.00
-
-
5,026,257.00
-
-
1,386,103.00
Other environmental expenses
-
-
0.00
278,886
12,538,230.00
2,770,920.00
Comment: OPEX values do not include the units of VCNA.
23
125
SOCIAL PERFORMANCE - LABOR PRACTICES
Employment
Period
2010
Page 80
PARTIAL
2011
Monthly paid
7,756
8,349
9,339
61
7,817
2,937
13
8,362
1,251
21
9,360
2,717
217
281
339
69
286
11,040
104
385
9,998
155
494
12,571
2010
2011
2012
LA1 - Total workforce by employment type, employment contract, region
2012
Hourly paid
Trainee
Own Subtotal
Own Subtotal VCNA
Intern and "Summer Student"
Apprentice
Subtotal Interns and Apprentices
Total
Employees per category
Own employees
Director / Chairman
Manager
Coordinator / Consultant
Technician / Analyst / Supervisor
Trainee
Operational
Intern
Apprentice
Direct employees VCNA
Owner+Intern+Apprentice
Comment:
13
13
13
178
193
226
264
302
398
1,094
1,285
1,468
61
13
21
6,207
6,556
7,234
217
281
339
69
104
155
2,937
11,040
1,251
2,717
9,998
12,571
For the number of employees reported in this report, the criterion used followed the pattern set by GRI methodology.
As the number of employees of VCNA was not available, the calculation for these employees was acquired from the difference
of total employees provided by HOD VC and the total number of employees published in the CSI spreadsheet.
LA2 - Total Number and Turnover of Employees by Age Range,
Gender and Region
Period
2010
Pages 81 and 82
PARTIAL
2011
Employees
9,854
Dismissals
2,231
Total Turnover
Comment:
126
2012
22.6%
Data reported include all units of the Organization, not only the units indicated in Granularity Table of Business. The values refer
to the number of own employees laid off, not including employees with time-specific contracts and interns.
The figures only consider employees VCBR. VCNA Employees were not included.
24
Employment
Page 81
COMPLETED
LA3 - Benefits provided to full-time employees that are not provided
to temporary or part-time, by major operations
Benefits Required by Law
Applicable to employees
Illness and accident assistance
VC
Periodic and laboratory medical examinations
VC, VCNA *
Maternity/paternity leave
VC, VCNA *
Variable remuneration (PPR)
VC, VCNA *
Chartered transportation
VC
Uniforms
VC, VCNA *
Transport vouchers
Additional Corporate Benefits
VC
Applicable to employees
Dental Assistance
VC, VCNA *
Medical Assistance
VC, VCNA *
Private Pension Plan (VotorantimPrev)
VC, VCNA *
Group Life Insurance
VC, VCNA *
Basic Food Hamper
VC
Company Arrangements with Pharmacies
VC, VCNA *
Company Arrangements with Opticians
VCNA *
Assistance for children with special needs
VCNA *
Child Day-care Assistance
VC
Funeral Assistance
VC, VCNA *
Christmas Toys/Children's Day
AGRE, CIM, VCNA **
School Kit
Christmas Hamper
VC
Company Arrangements with Private Gyms
VCNA **
Company Arrangements with Social Clubs (S System - SENAI, SESI, SESC,
SEST, SENAT).
VC *, * VCNA
Coverage for Disability/Permanent Injury
VC, VCNA *
Meal Vouchers/Food Vouchers
Amounts Invested in Benefits (R$ Millions)
VC
2010
2011
Amounts Invested in Benefits (R$ Millions)
2012
220,58
Comment VCBR: No changes in benefits from 2011 to 2012.
Relations between workers and management
LA4 - Percentage of employees covered by collective
bargaining agreements
Period
2010
Page 85
COMPLETED
2011
Employees covered by trade union agreements (%)
Comment:
98%
The value of LA1 reported includes only own active employees. The total number of employees considered for this indicator includes:
all VCBR workers.
The figures only consider employees VCBR. VCNA Employees were not included.
Table of Contents
NOT REPORTED
LA5 - Minimum notice for advance communication of operational changes,
including when it is specified in collective agreements
Period
25
2012
2010
2011
2012
-
-
-
127
Occupational Health and Safety
LA6 - Percentage of total workforce represented in formal health and safety
committee, composed of managers and workers that help monitor
and advise on occupational health and safety programs
Period
Table of Contents
2010
COMPLETED
2011
2012
None to 25%
25 % to 50%
50% to 75%
Over 75%
Comment:
X
It is planned for the coming years that all VC employees will be represented by the formal health and safety committee. The number
of total employees reported includes only own active employees. The total number of employees considered for this indicator includes:
all VCBR and VCNA employees.
LA7 - Rates of injury, occupational diseases, sick days, absenteeism
and work-related fatalities by region
Direct and Indirect Employees
Period
Pages 70 and 72
PARTIAL
2010
2011
Direct deaths of Employees (on-site)
0
0
2
Fatality rate (per 10,000 direct employees)
0
0.00
1.59
Indirect deaths of Employees (On-site)
2
0
2
Indirect deaths of Employees (Off-site)
1.64
2
6
0
2
5
40
33
29
1.65
1.27
1.06
14
26
16
0.51
0.77
0.47
3,141
3,335
2,927
725
888
515
Deaths of third parties
2012
Number of Accident with lost time (Lost Time Injury),
of direct Employees
Frequency Rate of Injuries with lost time by direct employees
(LTI Frequency Rate) (per million of worked hours )
Number of aciddent with lost time (Lost Time injury), of indirect employees
Frequency Rate of Injuries with lost time by indirect employees
(LTI Frequency Rate) (per million of worked hours ) (onsite)
Number of Days Lost (direct employees) (Calendar days)
Number of Days Lost (indirect employees) (Calendar days)
Comment:
128
For this indicator CSI methodology was adopted that considers the deaths of direct employees (2) and indirect on-site (2), as shown
above. The CSI methodology (Cement Sustainability Initiative - Cement Sector Initiative) also considers the indirect deaths off-site (6).
CSI also considers third parties deaths (5). Not included in this classification are any people directly or indirectly employed in Votorantim
Cimentos. Third parties usually include customers and visitors of the Company. Also included are drivers or passengers involved in
accidents with vehicles off-site of the Company, but only if there is culpability of the Company.
26
LA8 - Education, training, counseling, prevention and risk-control programs
in place to assist workforce members, their families or community
members regarding serious illnesses
Page 74
COMPLETED
Does the organization have training programs for employees, their families
or community members regarding serious illnesses?
The program covers 100% of employees and their families.
51.71% of the employees, and the program covers the family.
Are there workers involved in occupational activities who have a high
Principal risks: noise and mineral dust, working at heights,
incidence or high risk for specific illnesses?
confined environments, vehicles of varying sizes, high voltage;
• Healthy Eating Program
• More Life Program
• Program for the Promotion of Health and Quality of Life
• Program for the Prevention of Cardiovascular Risk
• Prevention of Neoplasms Program
• Program for Pregnant Women
• Vaccination campaigns
• EAP - Employee Assistance Program (professional service offers
assessment, referral and brief counseling in order to assist
employees and their families in resolving personal problems,
Major Programs in 2012
• Risk Control and Prevention Program (nutrition, quality of life,
respiratory protection, hearing conservation, ergonomics
(for prevention of osteo-musculo-articular disease)
• Therapeutic approach for risk factors in the orientation program
to encourage giving up smoking and doing physical activity
• Risk Control and Prevention Program (nutrition, quality of life,
respiratory protection, hearing conservation, ergonomics
(for prevention of osteo-musculo-articular disease)
• Therapeutic approach for risk factors in the orientation program
to encourage giving up smoking and doing physical activity
• Daily Dialogues on safety
Comment:
27
The value of LA1 reported includes only employees own assets. The total number of employees considered for this indicator includes: all
of funcionáris VCBR and VCNA.
129
Training and Education
LA10 - Average hours of training per year per employee
by employee category
Calculation of the average number of hours of training per year,
per employee, and per employee category
Page 83
COMPLETED
2010
2011
2012
Average Hours of Training
-
-
57.7
President/Director
-
-
11.9
Manager
-
-
30.7
Coordinator/Consultant
-
-
7.8
Technician/Analyst/Supervisor
-
-
10.6
Trainee
-
-
203.2
Operator
-
-
195.8
Intern
-
-
1.2
Apprentices
-
-
0.0
Comment: The number of employees considered for this indicator covers only Brazil. There is no traceability to the data for 2010 and 2011.
Page 81
LA12 - Percentage of employees receiving regular performance and career
development analysis
Performance Assessment
2010
2011
2012
Employees with performance assessed (%)
Career Development Assessment
2010
2011
99%
2012
COMPLETED
Employees with performance assessed (%)
Comments
130
99%
The value of LA1 reported includes only own active employees. The total number of employees considered for this indicator includes: all
employees VCBR
Employees considered for this indicator cover:
Profit Sharing Program Assessment: Employees GS ≤ 28
Variable Pay Assessment: Employees GS ≥ 29
Employees holding positions from GS 36 to GS 39 (managers and general managers), shall be assessed by Differentiated Variable Pay.
28
Diversity and Equal Opportunities
LA13 - Composition of governance bodies and breakdown of employees
per category according to gender, minority group membership
and other indicators of diversity
Composition of minority groups in the organization
Table of Contents
Employees over 50 years
Female
Composition of leadership
Directors/President
Managers
Breakdown of employees per category according to gender and age range
Position
Age (%)
Director / Chairman
PARTIAL
2011
2010
2012
662
726
856
1,075
2010
1,191
2011
1,398
2012
13
13
13
178
193
226
Employees
“Time of
over 50 years permanence (Years)”
Men
Women
%
%
0
2012
less than 30
30 to 50
13
0
6
7
11.49
13
Manager / General
Manager
226
7
179
40
8.5
190
36
Coordinator / Consultant
398
50
299
49
8.2
89
309
1,468
331
991
146
7.65
342
1,126
21
21
0
0
0.98
14
7
Technician / Analyst /
Supervisor
Trainee
Operational
7,234
2,555
3,962
717
5.27
700
6,534
Subtotal employees
9,360
2,964
5,437
959
42.09
1,348
8,012
Intern
339
329
10
0
0.61
168
171
Apprentice
155
155
0
0
0.61
56
99
Total Intern / Apprentice
494
484
10
0
1.22
224
270
Total timed employees
9,854
3,448
5,447
959
43.31
1,572
8,282
Comments:
The total number of employees does not consider VCNA employees. Interns and apprentices.
Table of Contents
NOT REPORTED
LA14 - Ratio of basic salary of men to women
Ratio of basic salary of men to women
2010
2011
2012
-
-
-
We do not manage salaries by gender.
VC has not differentiate salaries between men and women. Our practice
is to describe and evaluate job positions, classifying them into salary
groups (GS) according to their responsibilities such as operational,
technical, managerial and financial, without any distinction or connection
to the gender of the employee who holds, or may hold, the position.
29
131
Investment and Procurement Practices
HR1 - Percentage and total number of significant investment agreements
that include human rights clauses or that have undergone screening
on human rights
Table of Contents
COMPLETED
Total number
of significant
Total number of contracts
investment
that led the organization
agreements that
to a majority shareholding
include human
or to start an investment
rights clauses
Total number
project that has been
or have undergone agreements that include human rights
of significant
considered relevant in
a screening of
clauses or have undergone a screening
contracts
the financial statements
human rights
of human rights
Percentage of significant investment
2010
2011
2012
260
256
98.46%
Comments
The contracts for the acquisition of strategic inputs have the above-mentioned clause, as well as the Terms of General Conditions for hiring
contractors and buying materials. Only contracts that do not pass by one of those cited areas may not have such a clause.
The human rights clause has been defined in a standard form to be inserted in all formal contracts.
Page 78
COMPLETED
HR2 - Percentage of significant suppliers and contractors that have
undergone screening on human rights and the measures taken
Percentage of contracts
Total number
Percentage of contracts with significant suppliers and
with significant suppliers
of significant
contractors that have been rejected or required performance
and contractors that included
suppliers and
criteria or screening of
contractors
conditions, or were subject to other actions as a result
of screening related to human rights
human rights
2010
2011
2012
Comments:
132
139
47%
0%
The information on the percentage of significant suppliers and contractors that have undergone screening on human rights and the actions
that were taken began to be collected in 2011. In 2012, for providers of critical services, according to the procurement risk matrix,
all suppliers must undergo a process of approval. In this case the supplier signs a document where it declares that it does not use
compulsory or child labor.
As from 2012 we began to use an indicator for approved suppliers.
This evaluation is not audited; a self-assessment report is issued. The criteria for a significant supplier are: continuous service plus the critical
nature of the input for production.
30
Non-discrimination
HR4 - Total number of incidents of discrimination and actions taken
Discrimination cases
2010
Pages 43 and 44
COMPLETED
2011
2012
Complaints received by the ombudsman
-
-
-
Cases deemed founded
-
63
104
The number of complaints increased when compared to the previous year for the following reasons:
• New communication strategies
• Greater involvement of managers
• Increased confidence of the users in the tool.
Comments:
The data generated by the system is monitored daily. This information is reported monthly to the Audit Committee, and bimonthly
to the Conduct Committee, in order to discuss the strategies to be adopted.
Opportunity for improvement: Using data obtained by the ombudsman system in a strategic way, i.e. as a management tool to foster
improvements in business ethics. Example: Focus on major cases and motives and using the tool for management.
Success story: The implementation of policies and procedures for the Audit Committee and the Ombudsman was considered good
practice, since it standardized guidelines, objectives, roles and responsibilities.
We do not have a survey of discrimination cases which we reported through the complaints received by the Ombudsman.
Freedom of Association and Collective Bargaining
HR5 - Operations identified in which the right to exercise freedom
of association and collective bargaining may be at significant risk,
and the actions taken to support these rights
Period
Pages 78 and 85
2010
COMPLETED
2011
2012
-
-
0
Operations where the right of employees to exercise freedom
of association is at risk
Comments:
31
In relation to the indicator which measures the operations identified in which the right to exercise freedom of association and collective
bargaining may be at significant risk, and the actions taken to support these rights, there were no cases to report.
The data generated by the system is monitored daily. This information is reported monthly to the audit committee, and bimonthly to the
Conduct Committee, in order to discuss the strategies to be adopted.
133
Child Labor
Pages 43 and 78
COMPLETED
HR6 - Operations identified as having significant risk for incidents of child
labor, and measures taken to contribute to the abolition of child labor
Period
2012
The issues of compulsory and child labor are handled
through the code of conduct and also through operational
control audits. In the ombudsman system there is not
presently any specific topic called compulsory or child labor.
This will be inserted into the tool in 2013. However it is
Number of operations that may be at risk for cases of children or young
workers being exposed to hazardous work
possible to make a complaint in these cases in other topics,
such as image and reputation.
Suppliers included in the blacklists of IBAMA or the Ministry
of Labor are excluded by the SAP system. There is a control
that automatically deletes these suppliers.
In addition, there are specific clauses in contracts related
to this topic.
Annual audit plans are prepared, in order to assess the main risks of each business unit. These plans are discussed and validated with
the senior management of the business units so that they have a reasonable level of coverage according to the number of units of each
business, applying also the principle of rotation of emphasis. Additionally the existence of an ombudsman, supported by a systemic tool
that has proved to be reliable, facilitates the access of employees and other stakeholders if infractions are observed.
Comment:
The management process to collect information about operations identified as having significant risk for incidents of child labor,
and measures taken to contribute to the elimination of child labor, includes the daily monitoring of the data generated by the system.
This information is reported monthly to the Audit Committee, and bimonthly to the Conduct Committee, in order to discuss the
strategies to be adopted.
Forced or compulsory labor
HR7 - Operations identified as having significant risk for incidents of forced or
compulsory labor, and measures taken to contribute to the elimination
of forced or compulsory labor
Period
Pages 43 and 78
COMPLETED
2012
Number of Operations with Risk of Forced or Slave Jobs
Comments:
0
Annual audit plans are prepared, in order to assess the main risks of each business unit. These plans are discussed and validated with senior
management of the business units so that they have a reasonable level of coverage according to the number of units of each business, also
applying the emphasis rotation. Additionally the existence of an ombudsman, supported by a systemic tool that shows already
consolidated, it makes the access of employees and other stakeholders easier if they see deviations.
Follow-ups of data generated in the system are performed daily. This information is reported monthly to the Audit Committee, and bimonthly
to the Conduct Committee, in order to discuss the strategies to be adopted.
134
32
Community
SO1 - Nature, scope and effectiveness of any programs and practices
that assess and manage the impacts of operations on communities,
including entering, operating and exiting
Page 76
PARTIAL
There are
Number of operations
Percentage
The organization’s
How many people
current programs
for which the programs
of Operations
programs to
were affected by
to evaluate
are applied
for which
manage impacts
these programs
the impacts
the programs
on the community
of operations on
are applied
were effective
local communities:
in mitigating the
negative impacts
and maximize
positive impacts
2010
2011
Before entering
2012
the community
3
N/A
N/A
12,300
22
16.5
N/A
88,769
N/A
N/A
N/A
N/A
During operations
in the community
During the
decision-making
process in order
to leave the
community
Report examples of how feedback and analysis of data on community impacts provided information on measures aimed at the continuity
of community engagement by the organization
2010
2011
2012
N/A
The projects are managed by GPSV, which is a project management system developed by the Votorantim Institute to facilitate the flow
of information and storage of projects supported by the Votorantim Group. It is available in a intranet environment, with access restricted to
Votorantim management and registered external organizations, and includes the following functions: Registration of applicant organizations;
sending of an invitation letter to the applicant to access the system; Inclusion of projects with flow analysis for different levels; monitoring
of project results (Monitoring Report completed by the partner organization); registration of visits by Votorantim officials to the projects (Visit
Report completed by the unit); preparation of reports with consolidated data on the results of supported projects (tool implemented in the
2nd half of 2012); and a database for presentations, supplementary reading and tools to support the social investment (ISE) planning.
Comment:
33
Projects that took place during operations in the community: We considered the projects reported in the Votorantim Online Journal 2012.
Among the projects that had a large number of beneficiaries were the following:
Northeast Region: The project “Philharmonic - Nossa Senhora da Conceição”, organized by our Laranjeiras plant, cost R$ 350,000
and benefited approximately 4,500 people. The project “Jazz Festival”, organized by our Sobral plant, cost R$ 250,000 and benefited
approximately 24,000 people.
Southern Regional Projects: The project “Talking in the School”, organized by our Rio Branco do Sul plant, cost R$ 53,920 and benefited
3,880 people.
The project “Athlete of the Future”, organized by our Rio Branco do Sul plant, cost R$ 400,000 and benefited 300 people.
Regional Southeast: The project “Renovation and Expansion of Municipal Sports Gymnasium” organized by the Votorantim (SP) plant,
cost R$ 495,000 and benefited 14,253 people. The project “Relampião - A Saga do Cansaço”, organized by the São Paulo unit, cost
R$ 250,000 and benefited 6,400 people.
North Central Regional: The project “Friends of Volleyball” (in Fercal, Guara and Planaltina), organized by our Sobradinho plant, cost
R$ 446,000 and benefited 600 people. The project “Mato Grosso State Orchestra”, organized by our Nobres plant, cost R$ 175,000
and benefited 7,600 people.
Innumerable projects are carried out even before the entry of the VC into the local community. For example, in 2012, projects were developed
in the municipality of Primavera, where the plant is still under construction.
135
Corruption
SO2 - Percentage and total number of business units analyzed for risks
related to corruption
Period
Table of Contents
COMPLETED
2011
2012
Business divisions evaluated
226
208
Number of plants evaluated
44
18
19%
8.65%
2010
Plants evaluated (%)
Comments
The reduction in the percentage of plants being evaluated was due to reevaluation of audit procedures in order to prioritize aspects
of management and strategy.
SO3 - Percentage of employees trained in the organization’s anti-corruption
policies and procedures
Period
2010
Table of Contents
COMPLETED
2011
2012
Managers Trained (%)
47.1%
Non-managers Trained (%)
Total Employees Trained (%)
28.2%
29.5%
Comments:
All employees receive the company´s Code of Conduct, which presents the organization’s anti-corruption policies and procedures,
which corresponds to 100% of employees
We do not have indicators of previous years. “Managers”: employees in a functional category exceeding consultant.
The values for this indicator refer only to VCBR employees. Apprentices and interns are not considered in the number
of total employees.
The total percentage of employees trained was calculated based on the total number of trained managers plus the total number
of managers not trained.
Pages 43 and 44
COMPLETED
SO4 - Actions taken in response to incidents of corruption
Period
2011
2012
Total number of employees punished or dismissed for corruption
19
39
Supplier contracts not renewed due to the occurrence of corruption
6
11
Comments:
2010
All employees (39) were dismissed and all suppliers (11) had their contracts blocked. In some cases a police investigation was initiated
in order to recover amounts already paid.
Public Policies
SO5 - Public policy positions and participation in public policy development
and lobbying
Table of Contents
COMPLETED
2010
Committee in which
Company Representative
they participate
Name of Institution
ABRAMAT - Brazilian Association of the Industry of Building
Marcelo Chamma
Director
Materials
Martin Vroegh
Assurance Committee
Coalition of Fair Construction Practices
Martin Vroegh
Environment Committee
DRRCC - Durham Region Roundtable on Climate Change
Luiz Alberto Castro Santos
Chief of Strategic Planning
FICEM- Federación Interamericana del Cemento
Luiz Alberto Castro Santos
Advisory Board
SNIC - National Union of the Cement Industry
Alan Svaiter Deri
Board of Directors
ABESC – Brazilian Association of Concreting Services
John Moroz
Vice Chair of Directors Board OSSGA – Ontario Stone Sand and Gravel Association
Comments:
136
Votorantim does not take a specific position in relation to public policy, but it takes positions in the formulation of public policy through
the entities of which it is part. The lobbies and political positions taken by Votorantim go along with sustainability issues.
34
Public Policies
SO6 - Total value of financial and in-kind contributions to political parties,
politicians and related institutions by country
Período
Total das Contribuições (R$/Mil)
Comments:
2010
Table of contents
COMPLETED
2011
2012
*
-
795,000
Up to now donations were made only to candidates in Brazil.
The determination of total funds to be donated during an election period must be made by the Board of Directors. Votorantim makes
electoral donations in a transparent and responsible way. All donations are recorded in the accounts of Votorantim. The accounting
of donations and campaign spending may be monitored on the Superior Electoral Court’s website.
Votorantim’s policy is to donate directly to the candidate for reasons of transparency. Donations are only made to political parties
at the request of the candidate.
The donation is for the establishment of public policies. Votorantim considers that the decision to donate funds to election campaigns
by individuals is a personal matter, of exercising their citizenship, and that current legislation and ethical principles of democratic life should
always be observed. It is worth emphasizing that no employee is permitted to link his/her personal donation to Votorantim’s name.
Every donation is performed by VID, and is in alignment with the business divisions.
Unfair competition
SO7 - Total number of legal actions for anti-competitive behavior, anti-trust
and monopoly practices
Period
Total number of legal actions for anti-competitive behavior, anti-trust
and monopoly practices
Legal actions which are ongoing for unfair competition, and monopoly
and trust practices, up until 2012
2010
Page 37
COMPLETED
2011
2012
-
-
2
Amount involved in administrative penalties received in the year
-
-
46,920
Amount involved in legal action filed against the company in the year
-
-
5,600,000,000
Comments: 1. The value of R$ 5.6 billion corresponds to a public civil action filed against the company for cartel formation.
2. For this subject, the data began to be published in reports addressed to stakeholders from 2012.
In conformity
Table of Contents
SO8 - Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations
COMPLETED
Period
2010
2011
-
-
R$ 961,304,529.02
Number of non-monetary sanctions
-
-
2
Legal actions moved through arbitration mechanisms
-
-
0
Comments:
35
2012
Total value of significant fines
In 2012 Votorantim conducted a review of internal procedures aimed at improving the management of this indicator.
1. The increase in the monetary value of fines was due to:
• Implementation of the new corporate standard.
• VC: The VCNA plants are now included.
2. This includes the requests received and amounts paid, including both the lawsuits filed and the administrative proceedings.
3. For this subject, the data began to be published in reports addressed to stakeholders from 2012.
This includes the legal actions classified as “probable” and the values shown correspond to the amounts provided.
137
Customer Health and Safety
PR1 - Life cycle stages of products and services in which health impacts are
assessed for improvement, and the percentage of significant products
and services categories subject to such procedures
Period
This indicator was not reported because it was not considered material
PR2 - Total number of incidents of non-compliance with regulations and
voluntary codes concerning the health and safety impacts of products
and services during the life cycle, by type of outcome
Period
Table of Contents
NOT REPORTED
2010
2011
2012
-
Table of Contents
-
2010
COMPLETED
2011
2012
0
0
0
Comments: We did not record any infraction notices regarding the use of VC products.
Labelling of Products and Services
PR3 - Type information on products and services required by procedures,
and percentage of significant products and services subject to such
information requirements
Period
Table of Contents
COMPLETED
2010
2011
2012
Percentage of products covered by labeling procedures (%)
The information required by the organization’s procedures relating to
information and labeling of products and services
100%
Outsourcing of parts of the product or service
100%
Content, particularly with respect to substances that may cause
environmental or social impact
N/A
Safe use of the product or service
100%
Disposal of the product and environmental / social impacts
0%
Comments: 100% of products were covered by labeling procedures
PR5 - Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction
Period
Period between reports
Results for Level of Customer satisfaction
with products and services offered by
Votorantim Industrial (%)
VC
Total
Comments
138
2010
Page 55
COMPLETED
2011
Bi-annual
-
2012
87%
87%
Areas of Trade Marketing and Legal were consulted to answer this PR. As they indicated, there is no evidence of incidents
of non-compliance with regulations and voluntary codes relating to Marketing and Communication.
36
Marketing Communication
PR6 - Programs for adherence to laws, standards and voluntary
codes related to marketing communications, including advertising,
promotion and sponsorship
PR7 - Total number of incidents of non-compliance with regulations and
voluntary codes concerning marketing communications, including
advertising, promotion and sponsorship by type of outcome
Period
Table of Contents
NOT REPORTED
Table of Contents
2010
COMPLETED
2011
2012
-
-
0
-
1
0
1
0
Cases of non-compliance with marketing regulations that resulted
in a fine or penalty
Cases of non-compliance with marketing regulations that resulted
in warning
Cases of non-compliance with voluntary codes
Comments:
The areas of Trade Marketing and Legal were consulted to respond on this indicator. There was no evidence of incidents
of non-compliance with regulations and voluntary codes relating to Marketing and Communication.
In conformity
PR9 - Monetary value of fines (significant) for non-compliance with laws
and regulations concerning the provision and use of products and services
Period
Significant fines
Comments:
The number of units that have a biodiversity management plan
Percentage of units that have a biodiversity management plan
2011
2012
-
-
R$3,669,546.74
2010
-
Page 68
COMPLETO
2011
-
2012
2
2.44%
We considered 48 units in VCBR and 34 in VCNA with 57.32% overlap in areas of high biodiversity value.
Analyzing units with rehabilitation plans, 48 VCBR units, 10.41% have rehabilitation plans.
From the 34 considered VCNA units, 100% have rehabilitation plans. The weighted average value found and considering VCBR
and is 48.78%.
When evaluating units with Management Plan for Biodiversity values are: 48 VCBR units considereds 2.44%
(2 units) have Biodiversity Management Plans. VCNA units do not have this survey.
2010
Table of Contents
COMPLETED
2011
Number of company operations that have closure plans
-
-
39
Percentage in relation to the total number of operations
-
-
49%
MM10 - Number and percentage of operations with closure plans
Period
Comments:
37
2010
1. The increase in the monetary value of fines was due to:
• Implementation of the new corporate standard.
• VC: The VCNA plants are now included.
2. This includes the requests received and amounts paid, including both lawsuits filed and administrative proceedings.
3. This includes the legal actions classified as “probable” and the values shown correspond to the amounts provided.
Mining Sector Indicators
MM2 - Total number of units that have a biodiversity management plan
in accordance with the law
Period
Comments:
Table of Contents
COMPLETED
2012
48 VCBR plants were considered, and of these five have decommissioning plan. For VCNA 34 plants were considered and all have
decommissioning plan.
We intend by 2020 to have decommissioning plans for all plants and mines. These plans follow international consolidated
methodologies and management is carried out by the unit with corporate support and monitoring.
139
DMAs – DISCLOSURES ON MANAGEMENT APPROACH /FORMS OF MANAGEMENT
DMA
Dimension
Aspect
Level of Reporting
Page
6, Table of contents
Completed
EC2 and EC3
Market Presence
Completed
Indirect Economic Impacts
Completed
EC8
Materials
Completed
31, 60
Energy
Completed
31, 56
Water
Completed
31, 61
Biodiversity
Completed
31,68, 69
Completed
Completed
Table of contents
Economic
EC
indicators
EC6 and EC7
Table of contents
31, 62, 63,64, 65,66,
67
55, 60, 62, 63
Table of contents
EN
LA
HR
Conformance
Completed
EN28
Environmental
Transportation
Completed
31, 70
Indicators
General
Completed
55, 56
Employment
Completed
80
Relations between Workers and Management
Completed
80
Completed
72.73
Labor
Training and Education
Completed
80, 81, 81
Indicators
Diversity and Equal Opportunities
Completed
84
Management and Investment Practices
Parcial
55, 78, 79
Non-discrimination
Completed
44, 79
Freedom of Association
Completed
43,80,85
Child Labor
Completed
79
Forced/Compulsory Labor
Completed
79
Human Rights
Safety Practices
Completed
72
Indicators
Rights of Indigenous Peoples
Completed
89
Community
Completed
76
44, Table of contents
Corruption
Completed
SO3
Table of contents
Public Policy
Completed
SO6
Anticompetitive behavior
Completed
37
Society
SO
Indicators
Table of contents
Conformance
Completed
SO8
Customer Health and Safety
Partial
31
Labeling of Products and Services
Partial
55
Marketing Communications
Partial
PR7
Customer Privacy
No
Non-material
Compliance
Completed
Table of contents
Product
PR
140
Indicators
Table of contents
PR9
38
Financial Statements
142. Consolidated Balance Sheet
144. Consolidated Income Statement
145. Consolidated Statement of Comprehensive Income
146. Consolidated Statement of Changes to Net Worth
148. Consolidated Cash Flow Statement
141
Balance Sheet
Assets
Grade
2012
2011
9
10
11
12
13
13
969,546
2,032,431
910,690
1,182,101
176,195
83,920
110,174
512
138,957
225,130
1,450,510
786,077
890,668
149,316
23,554
118,425
7,552
140,336
5,604,526
3,791,568
Current
Cash and cash equivalents
Cash investments
Receivables from customers
Inventories
Taxes recoverable
Income tax and social contribution
Advances to suppliers
Dividends receivable
Other assets
Assets held for sale
Noncurrent
Related Parties
Deposits in Court
Income tax and social contribution taxes
Taxes recoverable
Other assets
31
14
20(b)
13
Investiments
Fixed Assets
Intangible
Total assets
On balance were considered VCEAA values. Detailed figures can be viewed in the VCSA DF grade 17 item d.
142
15
16
17
701,214
6,305,740
3,791,568
16,418
246,470
971,979
41,296
253,983
52,764
149,432
759,140
14,923
199,305
1,530,146
1,175,564
1,800,304
9,527,427
4,798,437
3,241,411
6,954,265
3,466,389
16,126,168
13,662,065
23,962,054
18,629,197
Liabilities and equity
Current
Loans and financing
Suppliers
Payroll and social security contributions
Taxes payable
Dividends payable
Advances from customers
Accounts payable in purchasing shares
Accounts payable - Trading
Accounts payable
Use of public property - UBP
Other liabilities
Grade
2012
2011
18
615,813
856,226
227,543
51,186
207,497
439,122
18,622
328,452
53,784
105,315
23,561
332,129
413,551
662,532
151,373
132,882
181,473
274,031
14,370
3,259,250
2,158,305
14
22
19
Liabilities with assets held for sale
31
Noncurrent
Loans and financing
Related parties
Provisions
Income tax and deferred social contribution
Payables with investees
Use of public property - UBP
Pension plan
Other liabilities
Net worth
Joint-stock
Tax incentive reserve
Profit reserves
Equity valuation adjustments
Equity attributable to shareholders
Participation of non-controlling shareholders
Total equity
36,826
57,993
22,005
211,269
274,104
3,533,354
2,158,305
18
14
21
20(b)
12,177,174
486,597
1,070,799
842,721
12,177,174
486,597
1,070,799
842,721
19
29
381,585
184,812
377,166
381,585
184,812
377,166
15,520,854
11,052,475
19,054,208
13,210,780
2,746,024
544,441
789,781
577,725
4,657,971
249,875
4,907,846
2,746,024
360,648
1,963,935
155,762
5,226,369
192,048
5,418,417
23,962,054
18,629,197
23
Total liabilities and equity
143
Consolidated Income Statement
Consolidated
2012
9,481,673
(6,177,116)
2011
8,698,352
(5,684,439)
Gross profit
3,304,557
3,013,913
Operating revenues (expenses)
With sales
General and administrative
Gain on sale of Cimpor
Other net, operation income (expense)
(609,992)
(668,007)
266,774
284,779
(595,402)
(529,991)
(726,446)
(1,421,325)
2,578,111
1,592,588
1 (a)
15
(170,075)
25,461
(144,614)
311,753
311,753
28
28
28
316,496
(869,941)
(381,819)
(935,264)
204,862
(723,633)
(253,643)
(772,414)
1,498,233
1,131,927
(359,199)
501,449
(478,071)
200,936
1,640,483
854,792
1,616,799
23,684
835,445
19,347
1,640,483
854,792
14,61
110,635
7,57
110,410
Revenue
Cost of goods sold and services rendered
Grade
24
1(a)
25
Operating profit before equity
and financial results
Results of shareholdings
Realization of other comprehensive income in decrease
of Cimpor investments
Equity accounting
Net financial income
Financial income
Financial expenses
Exchange rate changes, net
Income before income tax and social contribution
Current
Deferred
Profit for the year
Net income attributable to controlling shareholders
Net income attributable to minority shareholders
Profit for the year
Basic and diluted earnings per share - R$
Number of shares
144
20(a)
20(b)
(295,932)
Consolidated Income Statement
Consolidated
2012
2011
Profit for the year
1,640,483
854,792
Other components of comprehensive income in the year
“Realization of other comprehensive income in the low investment in Cimpor“
Participation in other comprehensive income of investees
Gains (losses) with retirement benefit
Hedge accounting of net investments abroad
Exchange variation of investees located abroad
89,142
(7,692)
(36,273)
(107,085)
483,751
(837)
(25,265)
(155,446)
412,307
421,843
230,759
2,062,326
2,062,326
1,085,551
1,085,551
2,038,762
23,564
1,079,951
5,600
-
-
Other components of comprehensive income
Total of comprehensive income for the year
Comprehensive income attributable to shareholders
Controllers
Non-controlling
Consolidated Statement of Comprehensive Income
Year ended in December 31st
In thousands of Reais
Net Profit for the year
Other components of the income
Comprehensive year
Realization of other comprehensive income
in low investment from Cimpor
Participation in other comprehensive income
of investees
Gains (losses) on retirement benefits
Hedge accounting of net investments abroad
Exchange Variation of investees located abroad
Other components of the comprehensive
Income in the year
Total of comprehensive income for the year
Comprehensive income attributable to shareholders
Controllers
Non-controllers
2012
1,616,799
Controller
2011
835,445
89,142
2012
1,640,483
Consolidated
2011
854,792
89,142
-7,629
-36,273
-107,085
483,871
-837
-25,265
-155,446
426,054
-7,629
-36,273
-107,085
483,871
-837
-25,265
-155,446
412,307
421,963
2,038,762
244,506
1,079,951
421,963
2,062,326
230,759
1,085,551
2,038,762
23,564
1,079,951
5,600
145
Statement of Changes in Equity
Grade
On January 01st of 2011
Joint-stock
Legal
Profit reserves
Withholding
2,327,212
227,732
2,187,350
Total Profit for the year
Net profit for the year
components of comprehensive income
Total comprehensive income for the year
Total contributions by shareholders
and distributions to shareholders
Increase in joint-stock
Allocation of net income in the year
Constitution of reserve for tax incentives
Legal reserve
Dividends (R$ 6.76 per share)
Retained earnings
Total contributions by shareholders
and distributions to shareholders
On December 31st of 2011
23 (a)
418,812
92
44,406
23 (b)
23 (e)
23 (b)
Grade
On January 31st of 2012
Net profit for the year
Other components of the income comprehensive
for the year
(400,000)
(84,342)
(746,757)
735,454
418,812
2,746,024
44,498
272,230
(495,645)
1,691,705
Joint-stock
Legal
Earnings reserves
Withdrawal
2,746,024
272,230
1,691,705
“Total contributions by shareholders and distributions to shareholders”
Participation of Non-controllers
in a business combination
1(a)
Incorporation of Votorantim Cimentos América (“VCA”)
2.2(d)
Increase in shareholder participation
Non-controllers Itacamba
1(c )
Allocation of net income
Legal reserve
23 (b)
Constitution of reserve for tax incentives
Interest on net equity (R$ 1.61 per share)
23 (e)
Dividends (R$ 21.95 per share)
23 (e)
Retained earnings
23 (b)
“Total contributions by shareholders and distributions
to shareholders”
On December 31st of 2012
146
80,840
(1,562,988)
307,994
2,746,024
80,840
353,070
2,746,024
789,781
(1,254,994)
436,711
Attributable to shareholders of the parent
Accrued profits
Valuation asset
adjustments
Total
Participation of
non controllers
Net worth
(88,744)
4,653,550
186,448
4,839,998
244,506
835,445
244,506
19,347
(13,747)
854,792
230,759
244,506
1,079,951
5,600
1,085,551
835,445
835,445
(55,585)
(44,406)
18,812
18,812
(139,835)
(139,835)
(746,757)
(746,757)
(735,454)
(835,445)
155,762
(867,780)
4,865,721
192,048
(867,780)
5,057,769
Net worth
Attributable to shareholders of the parent
Accrued profits
Valuation asset
adjustments
Total
Participation of
noncontroller
shareholders
155,762
4,865,721
192,048
5,057,769
1,616,799
23,684
1,640,483
421,963
421,963
(120)
421,843
421,963
2,038,762
23,564
2,062,326
68,953
(32,707)
68,953
(32,707)
(1,983)
(1,983)
1,616,799
1,616,799
(80,840)
(183,793)
(178,667)
(865,505)
(307,994)
(183,793)
(178,667)
(2,428,493)
(1,616,799)
-
(183,793)
(178,667)
(2,428,493)
577,725
(2,790,953)
4,113,530
34,263
249,875
(2,756,690)
4,363,405
577,725
4,657,971
249,875
4,907,846
147
Statements of Cash Flows
2012
Consolidated
2011
1,498,233
1,131,927
16 e 17
558,279
441,055
1(e)
7,657
(16,789)
1(a)
15(a)
170,075
(25,461)
1(a)
1(a)
11
(266,774)
Grade
Cash flow from operating activities
Earnings before income tax
and social contribution
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation, amortization and depletion
Decrease of noncurrent assets
Loss on sale of investment in Yguazú
Gain on sale of fixed assets
Realization of other comprehensive
Income of Cimpor
Equity accounting
Gain on remeasurement of fair value
of initial investment in Cimpor
Gain on asset swap
Provision for doubtful accounts
Provision (reversal) for losses on inventories
Interest, monetary and exchange rate
Provisions and tax liabilities
Impairment de investments
21(b)
Changes in assets and liabilities
Cash investments
Receivables from customers
Inventories
Taxes recoverable
Related parties
Other assets
Suppliers
Taxes payable
Payroll and social security contributions
Advances from customers
Accounts payable and other liabilities
Cash from operations
Interest paid
Income tax and social contribution paid
18(b)
“Net cash from operating activities”
Cash flow from investing activities
Increase in capital invested
Acquisition of Cementos Portland
Acquisition of fixed assets
Increase in intangible assets
Increase in capital of VCEAA
Net cash obtained in acquisition of VCEAA
Cash from the merger of CCRG
Proceeds from sale
of investmentsYguazú
Proceeds from sale
investment fixed asset
Dividends received
148
(311,753)
11,077
(16,217)
1,227,412
138,432
(20,896)
1,922
(21,547)
838,651
153,817
586,538
3,285,924
2,799,714
(581,921)
166,802
(14,311)
(11,524)
(65,183)
153,456
(24,775)
(24,669)
76,170
4,252
(303,492)
(266,530)
(108,437)
(72,285)
(66,706)
(124,939)
(134,960)
24,004
10,558
39,987
(11,918)
(200,053)
2,660,729
(719,109)
(519,525)
1,888,435
(550,229)
(531,553)
1,422,095
806,653
(58,602)
(11,759)
(56,570)
(1,723,061)
(152,020)
15(b)
15(a)
16
17
(1,500,091)
(41,332)
17(d)
148,799
30,535
20,064
193,377
232,912
156,590
Statements of Cash Flows
2012
Consolidated
2011
(1,207,250)
(1,553,908)
18(c)
3,674,624
2,434,303
18(c)
23(a)
(513,499)
(143,958)
18,812
(692,693)
Grade
Net cash used in activities
of investment
Cash flow from activities
of financing
Borrowings
Payment of loans
and financing
Share capital increase
Changes in related parties, net
Interest on net equity
Dividends paid
23(e)
Net cash used in activities
of financing
(207,001)
(178,667)
(2,263,402)
(683,782)
512,055
932,682
17,516
14,755
Increase (decrease) in cash
and cash equivalents
726,900
185,427
in beginning of the year
225,130
24,948
in the end of the year
969,546
225,130
744,416
200,182
Change in cash and cash equivalents
to cash from companies abroad
Explanatory notes are available on the website of Votorantim:
http://www.vcimentos.com.br/htms-ptb/Institucional/DemonstracoesFinanceiras.htm
149
Report Production
General Coordination and Production
Technical Directory – Corporate Environmental Management
Independent Auditor of GRI Indicators
and Financial Information
Person Responsible: Patrícia Monteiro Montenegro
PwC Auditores Independentes
Coordination: Janaina de Oliveira Barros
GRI Opinion
Global Reporting Initiative (GRI)
Production Team: Elisa Badziack and Regiane Velozo Dias.
Translation
Support Team: Andressa Depetriz Marcelino, Lívia Ballot
English: Richard Wightwick
de Miranda, Isadora Maria Barbosa de Lima Araújo
and Carolina Moreira Meira.
Photographs
Banco de Imagens Votorantim Cimentos,
VC Contributors: Bruna Bedim, Barbara Almeida, Gisele Bagoli,
Banco de Imagens VCNA
Michelle Dias, Dirley Antonio Maya, Alexandre Teixeira Borges
Padula, Simone Vilela Lopes, Patricia Barçante Pires, Adriana
Graphic Design
Laporta Cardinali, Maximiliano Echavarri, Paulo Borrego, Cristiano
fmcom
Fernandes da Silva, Edson Serapicos, Simone Vilela Lopes, Carolina
Simonetti, Frederico Cruvinel, Camila Tosta, Patrícia Ramalho Diniz,
Printing and Finishing
Daniel Motta, Maria de Fátima Peixoto Nascimento, Martin Vroegh,
Gráfica WE
Joe Horton, Geoff Bingham, Stephen Gallagher, Colin Evans, John
Vanderpas, John Moroz, James Munro, Richard Olsen, Adriana
Print Run: 40 copies
Villarinho de Lima, Maikon Cristofer Melo, Ana Paula Santana
dos Santos and Maurício Caetano de Mello.
Paper: FSC Certified Duo Design 300 g/m²
Instituto Votorantim
Typography
Rafael Luis Pompeia Gioielli
Frutiger, Adrian Frutiger, 1975
Votorantim Industrial - VID
Publication Date
David Canassa
October/2013
Editorial Consultant
Contacts:
Eduardo Dantas
Votorantim Cimentos
Praça Professor José Lannes, 40, 9º andar.
GRI ConsultantI
Itaim Bibi– São Paulo – SP
Deloitte Touche Tohmatsu
CEP: 04126-110
C/O: Corporate Environmental Management
Independent External Assurer
Cláudio José Andrade - Relatto Comunicação e Sustentabilidade Ltda.
150
E-mail: relatoriointegrado2012@votorantim.grupo
www.votorantim.com
contato@vpar.com.br

Integrated report 2012

Transcription

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