Winning as One COMMUNICATION NEWSLETTER

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1 Winning as One COMMUNICATION NEWSLETTER ISSUE 1 MARCH 2015 GETTING OUR PRIORITIES RIGHT We commit, We do! To Win As One Have RAZZMATAZZ! T he other day I attended a Market Storm, the market visit activities organized by the Commercial team, and got to interact with our customers where I learned so much from them including what they think about our products and behaviors of our end users. What a day! To delight our customers with innovative construction solutions while being committed to sustainability. Welcome to this first issue of Winning as ONE, Bamburi s monthly internal e-newsletter dedicated at getting us informed and on track with our business priorities. In this issue we focus our discussion on customer service and truck turnaround, key focus items if we are to continue being a customer centric organization. Customer service is an integral part of our jobs, and as brand ambassadors of our great brand we have to continue to educate ourselves about our business, products and how to best serve our customers. Personally I look forward to the next marketing activity be it Market Storm, Builders Academy or Retail Blitz, and I have committed to keeping top of mind our goals and my contribution to their achievement. To Win as ONE means our jobs are interlinked to achieve a common goal. And this goal is well spelt out in our new Vision To delight our customers with innovative construction solutions while being committed to sustainability. Let s keep doing this! We love receiving your feedback, so drop us a line on ke-communication.department@ lafarge.com Enjoy your read, and wishing you a successful month of April! Catherine I 1 1 In March our conversations at Bamburi centred around our goals as a company. The Winning as ONE cascade meetings were carried out across all sites, with the key objective of talking about our business priorities - that is our 2015 goals and detailed what needs to be done to get us there. The new Vision To delight our customers with Innovative Construction Solutions while being Committed to Sustainability focuses our energies to becoming a customer centric organization and putting customers at the centre of whatever we do. At the same time staff signed the Leadership Charter which is a commitment to practicing good leadership and delivering to our promise; key message being We Commit, We Do!

2 OUR MISSION Our Winning as ONE cascade meetings were carried out across all sites, with the key objective of talking about our business priorities - that is our 2015 goals and detailed what needs to be done to get us there. Our 2015 Priorities 1. Safety Zero fatalities and zero Lost Time Injuries (LTIs) 2. Sales increase domestic sales and premium products, and reduce Truck Turnaround Time 3. Production increase clinker production, reduce truck turnaround time, increase Alternative Fuel (AF) substitution and increase cement production 4. Financial grow revenues in value added products and new market segments from last year, achieve cost reduction, generate cash equivalent to operating profit (after CAPEX), and keep overheads at 2014 levels. 5. BSP Increase RMX volumes from last year, grow Precast revenue and improve profitability 2 2I

3 TRUCK TURNAROUND TIME (TTAT) Our customers are happy when we serve them faster. This is why Truck Turn Around Time (TTAT) is one of our key focus areas in 2015; with a target to reduce it to two hours by end of the year. What is TTAT? This is the amount of time trucks take from the time they drive into our truck yard to the time they load cement and leave the Plant. These trucks are either self collect or delivered (contracted transporters who deliver cement in different regions on behalf of Bamburi). Why do we need to act on our TTAT? TTAT is a key factor in measuring our customer service performance. A customer will not be happy when they are spending a lot of time at our Plant just collecting their purchased goods. As the adage goes, time is money. And so the faster we serve them, the happier they are. Who is tasked with this responsibility? There is a team in place (composed of commercial and logistics teams) working to find an efficient and faster plan of reducing the TTAT at both the Nairobi Grinding Plant (NGP) and Mombasa Plant (MSAP). All staff are however called upon to see how they can contribute to making this process much more efficient. What are the prospects when we achieve the target? The future is very bright when we have happy customers, who talk to others about our good services, who talk to others, who talk to others Watch out for an update report on TTAT in the next issue. Logistics perspective of Truck Turnaround By Daniel Ndunda Truck Turnaround (TTAT) can be defined as the rapidity with which trucks are turned around at our sites. It is important to look at and measure TTAT from safety, cost and customer service perspectives because that is what it is all about. In regard to our self collect customers for example if we keep their trucks for long we cause them to lose money in terms of opportunity cost. In other words, they cannot use their trucks to carry out other businesses and earn them money because they are idling at our sites. For contracted transporters many of the trucks are on loan and therefore they must earn money to repay. When we keep their trucks for long at our sites the implication is that they factor in this when quoting to work for us, inevitably it translates into higher freight rates (that is the rate we pay them to transport our cement to different regions). This means if a truck can take 2 hours to load at our Plants we will pay lesser charges per tonne compared to say where it takes 10 hours to load.. For contracted transporters many of the trucks are on loan and therefore they must earn money to repay The longer we keep trucks at our Plants therefore the poorer the TTAT, the higher we pay to transport, and the more inconvenience to self collect customers. Indeed, 3 3I longer turnaround times often lead to congestion, a fertile ground for accidents, hence the safety perspective. Long TTATs do not paint a rosy picture given that we are in a very competitive environment. For example around our NGP Plant in Athi River are five other aggressive competitors. Poor TTATs means you have long queues of trucks waiting to load, so now when a customer has an option of a shorter queue elsewhere they will weigh the options and may end up going to where the queue is shorter and tasting the product. Well, it is dangerous to allow customers to taste competitor s product, because you never know, they might find it equally good too. This works to our disadvantage even though all other aspects of our products are excellent. Delaying trucks at our Plants also means they take longer to get our cement to the market. This increases chances of stock running out, which may affect our product availability. Now we all know that customers will buy what is available. The drive to improve our TTAT therefore is a drive to improve safety, customer service, product availability in the market and can also be used to negotiate better freight rates.

4 OUR CUSTOMER EXPERIENCE These are the general steps a customer goes through from the time they enquire about our products to conclusion of the sale: 1. Leads & prospects This is the first step, where the customer calls us with a query to buy our products. They either talk to our Retail Representatives or Territory Sales Managers (TSM), or call or us. The customer details are captured in our Customer Relationship Management (CRM) system as a lead. 2.Qualification The TSM or Regional Sales Representative (RSR) then visits the customer and a customer assessment is done. If viable, the customer is converted to a prospect on CRM. Account opening documents are then sent to Bamburi these include a letter of application, VAT and PIN certificates, business licenses and country permits, memorandum/articles of association, IDs/passport copies and copy of a utility bill. 3.Documentation This stage involves document verification, opening of customer account in SAP, customer addition to our M-service and a welcome to customer advising them about among others, our sales process (how to place orders), bank details, safety requirements, TSM/ RSR contacts and our customer service contacts. 4.Safety assessment The fact that health & safety is a key priority in our business means that a safety assessment is an important step in this process. There is a checklist of the inspections done to generally ensure that the track/vehicle is in good order and its driver safe to drive. This include things like a valid driving license and for the vehicle insurance, speed governor, windscreen, wipers, tires, driving mirrors, hazard lights, brakes among others are in good working condition. 5.Inspection to order assignment After inspection, processing of the order follows which entails the truck driver presenting their LPO and confirmation of payment (eg RTGS, bank transfer, bank slip or Mpesa). The order is then issued and vehicle queued to await loading. 6. Order assignment to weigh 1 to weigh 2 Trucks that fail the safety inspection require an override, which is given by the Head Marshal exonerating Bamburi from any responsibility. Upon confirming it is empty the truck is then loaded and passes the weighbridge to check that it has the correct load weight before leaving the Plant. 7. Invoicing and statements This is the final step. Invoices and statements for Nairobi and its environs are delivered daily, while the upcountry ones are dispatched weekly. 4 4I

5 5 Q S FOR... Samuel Muhingo, Head of Direct Sales, Bamburi Cement Q1: What does your job entail? In a nutshell my job purpose is to: i. Achieve sales volumes from Direct Sales customers for Bamburi. These are key accounts which include contractors and institutions. ii.manage relationships in a manner that achieves maximum value for our customers and the company. This is through targeting and designing solutions for customers including working with other functions in the business internally. iii. Liaise with stakeholders in government and private sector to lobby for key infrastructure projects through a multifaceted approach Q2: What is the best feedback you have ever received about Bamburi? It was in a recent Transport and Infrastructure Ministerial Stakeholder meeting where some KEPSA members made colourful statements of Bamburi Cement as a market leader and cement quality champion, implying that it is the only company that qualified to meet the standards required for the Standard Gauge Railway (SGR) project. It was a joy to listen to with the Cabinet Secretary in attendance. Q3: What is the one reason you enjoy selling Bamburi? Bamburi is a strong brand with a heritage spanning over 60 years, but more so it is the high quality our brands are associated with. It gives me pride to be associated with a brand with such high brand equity. Q4: Share any interesting encounter about our brands. It is interesting the fact that some people are not able to draw the connection between Bamburi the company name and some of our It gives me pride to be associated with a brand with such high brand equity. product brand names. I have met someone who knew Nguvu cement but could not draw the connection with BCL since they thought our cement is called Bamburi, and when I clarified to them about Nguvu being our cement they went like Really? Q5: Where do you see the Bamburi brand in say 10 years to come? The future is very bright. The construction sector is growing fast with a lot of investment by private sector in real estate and mixed use developments, and the government has lined up very ambitious infrastructure projects. There is going to be a lot of business opportunities in the coming years for Bamburi. I am sure the brand equity will just be as strong and hopefully with more construction solution offers and products! 5 5I Samuel Muhingo, Head of Direct Sales, Bamburi Cement Limited

6 CUSTORMER SERVICE / KEY SALES CONTACTS Customer service contacts What do you do when a call comes through to you from a customer enquiring about purchasing our products? Do the right thing. Call and give them our Customer Service contacts: /6 (NGP front office), (MSAP Front Office) Our customer service extensions are: NGP 2705, 2715, 2716, 2792 SUPERVISOR NGP 2673 MSAP 3400 SUPERVISOR MSAP 2661 CUSTOMER SERVICE MANAGER 3142 Key Sales contacts What happens when you receive a query from a friend or a potential customer on a sales and marketing aspect of our business you are not quite familiar with like how and where to acquire our cement in different regions, bulk buying among others? Here are mobile phone contacts of our Sales personnel to call and refer the client to: TERRITORY SALES MANAGERS REGION CONTACTS BENSON WAICHARI EASTERN Kitengela, Athi River, Kitui, Matuu JOHN NDUMIA NORTH RIFT Eldoret, Kitale, Webuye, Lodwar SARAH ENDUSA COAST Voi, Lamu, Kilifi, Mombasa, S.Coast WILSON SITIMA Mt. KENYA Ruiru, Thika, Nyeri,Meru, Embu, Moyale GEORGE GOGO SOUTH RIFT Narok, Nakuru, Kericho, Isebania, Kisii BREVA AMIANI NAIROBI former Nairobi province JAMES ONSARIGO LAKE Awasi, Kisumu, Busia, Kakamega, Bungoma RETAIL REPRESENTATIVES CAROLINE MBUGUA NAIROBI NORTH Utwala, Embakasi, Donholm, Umoja KENNEDY WAWERU EASTERN Kitengela, Athi River, Syokimau, Machakos JOHN MULI NAIROBI CENTRAL - Kikomba, CBD, Industrial Area WILBERFORCE LANGAT NAIROBI SOUTH Ongata Rongai, Ngong, Karen, Langata SAMUEL NJAMBI NORTH RIFT Narok, Nakuru, Kericho, Isebania, Kisii PHILIP MUNENE MT.KENYA Ruiru, Thika, Nyeri,Meru, Embu, Moyale KEY ACCOUNTS / CONTRACTORS SAMUEL MUHINGO HEAD OF DIRECT SALES DANIEL YU KEY ACCOUNTS MANAGER - CHINESE DAVID MULWA KEY ACCOUNTS MANAGER TRADE SALES BENARD NANDIEKI NATIONAL SALES MANAGER I

7 INSIGHT Guide to visiting our customers Winning as ONE has customers at the core of our operations. And to satisfy our customers we have got to understand them and their needs well. We are therefore called upon to make market visits to our customers once in a while, to understand their interaction with our products and their overall experience. It can be an interaction with hardware stores near your residence, or even making a deliberate visit to the market to interact with our customers at a larger scale (note staff have been requested to do at least one market visit every quarter). It also helps you in responding to queries from your friends or other customers enquiring about our products. Here is a guide as you do that market visit. Please note to debrief a member of the Commercial team after any visit you make, to share your findings and to help them take action to improve our customers experiences. CURIOSITY: Plays a key role in ensuring that our time in the market is effective. This means we are always thinking about opportunities, asking questions, challenging current paradigms and thinking out of the cement bag. Employees may play different roles on a market visit depending on the objective of the visit and with whom they are interacting. Your role in the market Employees may play different roles on a market visit depending on the objective of the visit and with whom they are interacting. Roles include: Learner: Learn about the market in general, a specific part of the business or strategy as part of a development plan. Coach: Share knowledge and experience in developing others. Inspirer: Encourage improved/enhanced performance or recognize specific and/or general effort and achievements. Partner: Assess opportunities together with key stakeholders, primarily with dealers and distributors. Interacting with more customers during the market storm Disciplined actions while in the market You represent Lafarge Understand and appreciate this responsibility. >> Be committed to the objective and time you are in the market >> Pay attention to details but also take a systematic view of the market >> Help out if the customer asks for merchandising, restocking, calling in problems with equipment and so on. >> Be curious ask questions from all stakeholders. Ask to understand, do not assume you know the answer >> Listen >> Take notes Etiquette guidelines Introduce yourself to the customer outlet manager and thank them for their business Be respectful of who you are with and who you are talking to end users and customers are the lifeblood of our business Be respectful of requests from the dealers and retailers Turn off all electronic devices eg mobile phones Ask permission should you need to take photographs Do not distract customers (do not get in their way of getting to product) Give positive and constructive feedback Ready for the market now? Go for it! After every market visit, ensure to do a debrief with a member of the Commercial team on feedback received 7I 7

8 NGUVU CEMENT All about NGUVU Nguvu is our flagship brand for general purpose construction. Here is what you need to know about this brand: Characteristics Product type: All Purpose cement. Minimum compressive strength of 32.5 MPa (N/mm²) at 28 days Conformity: Manufactured to harmonized EA standard KS EAS 18-1 as adopted from EN (European Norm) standards Constituents: Clinker, gypsum, limestone or pozzolana Technical names: Pozzolanic Cement CEM IV/B-P 32,5 (Ex-Nairobi Grinding Plant) or Portland Limestone Cement CEM II/B-L 32,5 (Ex-Mombasa Plant) Packaging: Brown strong WPP bag Weight: 50 Kg Benefits Fast setting: Develops early day strength rapidly Strong: Achieves the desired final day strength for concrete Gives desired bonding and stick-ability in concrete and masonry works Consistent performance Easy to mix and apply Smooth plastering Available countrywide in retail, wholesale and distributor outlets Applications Structural applications Slabs, beams and columns Water retaining structures Foundations, footings and domestic floors Poles and post foundations Mortar for brick laying and plastering Brick and block making 8 8I

9 PICTORIAL Storming the Market Simeone Kibirige and Catherine Ndioo share a light moment with hardware owners during a market storm in Kitengela Interacting with more customers to get their feedback on our cement Benson Wangalwa, Jane Wangari and Eizabeth Hiri spend time with traders in the market. This newsletter is produced by the Communications Team. Contacts or suggestions? Write to: ke-communication.department@lafarge.com 9