“Patrimonio Hoy” CEMEX’s Progressive Housing Alternative for Low Income Segment 17/03/04

Mission and Objective MISSION Patrimonio Hoy is one of the programs which support CEMEX’s social responsibility strategy With Patrimonio Hoy CEMEX makes a compromise with its Corporate Citizenship by offering integral progressive housing solutions for low income families OBJECTIVE Business: to position the Company and its brands in the low income communities, through a close and direct relationship, providing them with products and services according to their needs and development capabilities. Social Responsibility: to contribute in improving the opportunities of better life conditions for low income communities, increasing the quality of housing conditions.

Problems to Solve Tangible Unable to save No accesss to formal credit Material and building knowledge Access to certified quality materials Organization of the process Intangible Unable to perceive a wider life perspective Confronting a future with a limited space for their participation Result is a typical project: A new 110 sq. Ft room Building time of 4 yrs Investing $1,000 for materials Waste of 30% Tied to a chronic, hopeless resignation which impedes them building a better future

What does the Program offers Microcredit for building mats Based on solidarity of a group of 3 No collaterals $4 credit for each $1 saved Technical Advise Customized house growth project for each family, phased one room at a time Benefits & Services Frozen prices for 70 wk periods Warehousing services to store mats according to their needs A steady, progressive, well implemented project with 2/3 savings on time and 1/3 less cost A sense of trustfull capacity to face other challenges

Value for CEMEX Basic sustentability Business model design asks for enough income generation to operate and grow 2 main income sources: Membership fee Discounts from participating distributors Intrinsic values Demand expansion Accelerated cement use – 1 room in 16 vs 48 months Additional rooms vs originally able to built Branding Increased brand loyalty Other segments brand preference based on demonstrated social responsible programs

Critical success aspects Trust bridge building Fulfillment off all the Program’s promises Local presence and permanence, developing a sens of being part of the community Very high consumer service standards

Status More than 75,000 families have participated 48 offices in 23 cities Generating its own growth resources 8 2 On time payments higher than 99.2% Families have built the equivalent of 33,000 additional 110 sq.ft rooms