Brazilian Cement Industry Overview

2 April 2010 Scenario of Brazilian Cement Industry n 12 groups n 70 plants –47 clinker plants –23 grinding plants n Capacity: 67 M tons* * Estimated Source: SNIC 2010

3 April 2010 Brazilian Cement Industry (2008) 51.4 M tons 271 kg 0.8 M ton 52 M tons Consumption Per capita Consumption Exports (cement & clinker) Production 0.4 M ton Imports (cement & clinker) Source: SNIC, 2008

4 April Cement Sales

5 April 2010 Precast Industry n R$ 8,060 bi market in 2010 n Up 15% from 2009 n 8500 th industries with 130 th employees n R$ 1,262 bi blocks market n Estimate growth of 5% to 7% in

Brazilian Portland Cement Association Overview

7 April 2010 Brazilian Portland Cement Association n Privately-owned, non-profit association, sponsored by the Cement industry n Aims at: –affording assistance to the cement manufacturing –developing the cement-based products and cement-based systems markets –technical support and education to cement consumers

8 April 2010

9 Today´s ABCP n 120 employes n São Paulo headquarters: –total area – 15,000 m 2 –Built area – 5,200 m 2

10 April 2010 Present in 12 state capitals REGIONAL BRANCHES CITY REGIONAL REPRESENTATIVES ABCP N/NE Recife Ceará Bahia ABCP MGBelo Horizonte ABCP RJRio de Janeiro Espírito Santo ABCP SPSão Paulo ABCP SULCuritiba Santa Catarina Rio Grande do Sul ABCP CO Brasília Mato Grosso do Sul Presence in 12 state capitals MID-WEST NORTH/NORTHEAST SOUTH National coverage

11 April 2010 Today´s ABCP: Our Mission n As a representative organization of the cement industry acts on: –Promotions of cement –based products and systems –Communication of the industry’s views on technical, environmental, energy and promotional issues –Promotion of energy recovery through the use of alternative fuels and raw materials –Actions on development of standards and quality certification for cement and cement- based products –Actions on Education and “culture of cement”

12 ABCP links Technology Market Development Institutional Affairs Develop leadership and a positive image to the cement industry within the construction chain

13 April 2010 ABCP Services & Projects n Services : aim to foster the adequate use of cement and revenue source. n Projects: Focus on threats and opportunities related to –cement market developments –environmental issues on cement manufacturing and use –Communication on “cement culture”

14 April 2010 Services n Laboratory analyses n Research on new products and systems n Standardization works n Emissions collection and analysis n Consultancy and assistance n Information diffusion: website, helpdesk, library n Capacitation of professionals: courses, training, internships n Support to market development

15 April 2010

16 April 2010 ABCP Projects: Focusing on threats and opportunities n Integrate our actions with our Members n Provide training and awareness for architets, structural engineers and students n Keep share where we are market leaders (concrete structures) n Achieve share where we are not market leaders( ceramic bricks, asphalt) n Increase the Construction Sector share in national GDP n Stimulate creation of cement-based products Associations –ABCIC (pre-cast) –ABTC (pipes) –BLOCOBRASIL (blocks) –ABAI (industrialized mortar) n Play the role of business-government interface n Foster the cement sustainablility

17 April 2010 ABCP Areas & Projects Do-It-Yourself Construction Housing of Social Interest Edifications Construction Community Edifications Structure Masonry and Retaining Walls Edifications Dry-Set Mortar Edifications Concrete Structures TechnologyCommunicationsInstitutional Affairs AdministrationMarket Infrastructure Concrete Pavement Industry Interlocked Pavement Industry Pre-cast Industry Concrete Pipes and Pieces Infrastructure RCC Dams n Technology n Market Development n Institutional Affairs n Communications n Administrative

18 April Technology n Standardization of cement and concrete n Standardization of competing products (monitoring) n Wastes co-processing n Petcoke n Environment n Quality Mark for Cement n Quality Mark for Cement-Based Products n Non-conforming cements (non-associates) n Laboratory services for cement manufacturers and consumers n Training to the Associates’ commercial and technical personnel

19 April 2010 Market Development Infrastructure n Concrete pavement –Pavement for highways, municipal streets, ports, airports –Pavement for county roads –Recycling of flexible pavements with cement addition –Restoration of flexible pavements with white-topping –Restoration of concrete pavements with “overlay” n Dams with roller-compacted concrete Edifications n Community Construction n Structures and coatings n Structural masonry and retaining walls Pre-cast industry n Concrete pieces n Pre-cast for Infrastructure and Edifications n Interlocked pavement Housing of Social Interest Do-it-yourself building Concrete: main focus of our attention Concrete: main focus of our attention

20 April Institutional Affairs n Construbusiness – Civil Construction Productive Chain n President of the Republic n Ministry –Development & Industry & Foreign Trade, Cities, Science & Technology –Defense, Transports, Environment, Work & Employment n National Congress n Deputies Chamber n Legislative Assemblies n State Secretaries (Housing, Transports, Environment) n Public Organizations (DNIT, Infraero) n Regulatory Agencies (ANA, ANEEL) n Financing Agencies (BB, CAIXA and private banks) n Organizations –CNT / CNI / FIESP / COMCIC –CBIC / SINDUSCON –CBN / ABNT n Municipalities n Technical environment (architects, engineers, designers etc.) n University environment (students and teachers) focus

21 April Communications Strengthen the culture for cement-based products and systems through mass media, promotion of events, creation and distribution of pieces, etc. n Defense of leadership –Concrete x steel structure Construction Community Creation of cement-based products associations n Formation of professionals –Courses at ABCP n Approach to universities –Competitions for students n Increase of use –Concrete / pavers x asphalt –Concrete block x ceramic brick n Dispute for assets –Own house x cell x computer x car X++

22 Pre-cast industry

23 April 2010 Industry - Operation Organization of the construction chain Information diffusionTechnology Research

24 April 2010 Bloco Brasil n Founded in 2003 n 34 pavers manufactures n 38 mansory blocks manufactures n 25 supplyers and associations n 5 engineers and architetcs

25 April 2010 Structural Mansory Review of the project and construction standards

26 April 2010 Structural Mansory Development of projects best practices 40 Φ

27 April 2010 Interlocking Concrete Pavement ABNT NBR Construction Standard

28 April 2010 Interlocking Concrete Pavement Design tools and guide specifications

29 April 2010 Interlocking Concrete Pavement Support on the field - SP 332 – Valinhos – DER/SP Regional-SP

30 April 2010 Concrete Tubes Comparison on different types on sanitation systens

31 April 2010 Manholes Standardization

32 April 2010 Business Development for Manufacturers

33 April 2010 Research Permeable Pavement Dry Concrete Underground Utility Eps Coating Industrial Waste Photocatalytic Concrete Extruded Mansory

34 April 2010 Research Technical Papers Permeable Interlocking Concrete Pavement

35 April 2010 Laboratory tests Permeable Interlocking Concrete Pavement

36 April 2010 Q&A and Guide Specifications Permeable Interlocking Concrete Pavement

37 April 2010 Constructions Media releases Permeable Interlocking Concrete Pavement Education

38 April 2010 Dry Concrete Research Pesquisa Básica Pesquisa Aplicada ProtótipoMercado Fabricação Piloto

39 April 2010 Manholes Research Pesquisa Básica Pesquisa Aplicada ProtótipoMercado Fabricação Piloto

40 April 2010 Industrial Waste Bentonita Natural Bentonita Ativada Pó de Carvão Pesquisa Básica Pesquisa Aplicada Protótipo Fabricação Piloto Mercado

41 April 2010 Eps Coating Mortar´s mix design Pesquisa Básica Pesquisa Aplicada Protótipo Fabricação Piloto Mercado

42 April 2010 Photocatalytic Concrete Pesquisa Básica Pesquisa Aplicada Protótipo Fabricação Piloto Mercado

43 April 2010 Extruded Blocks Pesquisa Básica Pesquisa Aplicada Protótipo Fabricação Piloto Mercado