CIO Latin America Summit, Panama

Strength. Performance. Passion CIO Latin America Summit, Panama The IT Shared Service Center A challenge and leadership journey! LASER IT - Service Center, Edson Massami Tsuda, 2013-01-15

Agenda 1. Holcim Group Overview 2. Holcim Group: IT Strategy 3. LATAM IT Clustering Process 4. Governance 5. BPO & Key Users Organization 6. Learnings and final message 2

Holcim, 100 years! Holcim is one of the world s leading suppliers of cement and aggregates. Further business activities are ready-mix concrete, concrete products, asphalt and a range of related services

Building on a proven strategy LASER IT - Service Center, Edson Massami Tsuda, 2013/06/12-14 4

Holcim at a glance 2013 Strong focus on value creation A global Group with Swiss roots, founded in 1912. Operating in around 70 countries accross all continents and employs a workforce of approximately 78.000 Strategic Pillars Cement and aggregate as core business Globally active and firmly rooted: geographic diversification Local responsibility with global leadership Success is based on good people Motivate and demand Training as a continuous process Safety at work: Passion for Safety Committed to environment and society Natural resources are a precious commodity Alternative fuels and raw materials have a future Living up to our social responsibility Member of DJSI Dow Jones Sustainability Indexes. Included in DJSI World Index and Dow Jones STOXX Sustainability Index for 10 years 5

Net Sales by Region 2012

Holcim Key Figures 2012 2012 2011 +/-% Annual cement production capacity million t 217,5 216,0 +0,7 Sales of cement million t 148,0 144,3 +2,5 Sales of mineral components million t 4,8 5,1-7,0 Sales of aggregates million t 159,7 173,0-7,7 Sales of ready-mix concrete million m 3 46,9 48,4-3,1 Sales of asphalt million t 9,1 10,3-11,8 Net sales million CHF 21,544 20,744 +3,9 Operating EBITDA adjusted 1 million CHF 4,223 3,975 +6,2 Operating EBITDA margin adjusted 1 % 19,6 19,2 Operating profit adjusted 1 million CHF 2,552 2,308 +10,6 Operating profit margin adjusted 1 % 11,8 11,1 EBITDA million CHF 4,415 4,264 +3,6 Net income million CHF 1,026 682 +50,4 Net income margin % 4,8 3,3 Net income - shareholders of Holcim Ltd million CHF 622 275 +126,5 Cash flow from operating activities million CHF 2,682 2,753-2,6 Net financial debt million CHF 10,362 11,549-10,3 Total shareholders' equity million CHF 19,837 19,656 +0,9 Gearing 3 % 52,2 58,8 Personnel 78,103 80,967-3,5 1 Excluding restructuring costs. For more information, please access www.holcim.com

Dynamic Latin America LASER IT - Service Center, Edson Massami Tsuda, 2013/06/12-14 8

Agenda 1. Holcim Group Overview 2. Holcim Group: IT Strategy 3. LATAM IT Clustering Process 4. Governance 5. BPO & Key Users Organization 6. Learnings and final message 9

Background < 2000 Single IT Department at country level Holcim IT Strategy definition: late 90 s IT Clustering: moving from Local to Regional Focus on standardization SAP as a standard solution to support the business processes Change Management Governance Local ExCo BPO s Business Process Owners and Key Users All Holcim Group Companies in Latin America (9) have been integrated into one single IT Service Center, LASER, located in São Paulo, Brazil

Main IT Targets from 2003 onwards Objective 2006 (defined in 2003) IT Costs < 1,5% Net Sales Objective 2008 (defined in 2006) ITSCs ISO 20000 & 27001/2 implemented Ongoing targets Compliance Security Focus on standardization and efficiency End Users Satisfaction > 90%

Holcim: Group IT Clustering in progress From 1999. 2013 Holcim Group, IT consolidation... 12

IT Strategy: Global alignment of IT resources with focus on coordination and standardization Functional Organization Regional IT Service Centers Corporate IT IT Coordination Group Management Processes IT Business Planning and Budgeting IT Project Approval Process IT Reporting and Controlling Lowering of Complexity through Standardization Infrastructure and Architecture IT Processes (e.g. IT-Security) Business Processes Business has to lead as of Jan 2013 13

Agenda 1. Holcim Group Overview 2. Holcim Group: IT Strategy 3. LATAM IT Clustering Process 4. Governance 5. BPO & Key Users Organization 6. Learnings and final message 14

LATAM: IT Clustering process From 1999. 2013 as of Jan 2013 LATAM Journey, 14 years later!

LATAM Region: Evolution El Salvador Nicaragua Mexico Costa Rica Ecuador Chile Colombia Argentina Brasil Holcim left it s operations in Venezuela (2008) and Panama (2009) Go Live: August 2001 Argentina, Brazil and Chile January 2003 Colombia and Venezuela January 2004 Ecuador, Costa Rica, Panama and Nicaragua July 2005: Holcim Miami (Procurement Office) January 2006 El Salvador January 2012 Mexico 16

LATAM Key Figures: Mar. 2013 Mexico Key Figures: Mar. 2013 El Salvador Nicaragua Costa Rica Ecuador Chile Colombia Brasil Nr. of Countries 9 Nr. of employees 11.512 IT Users 7.547 SAP Users 5.549 FTE (LASER) 174 Locations 292 on line 284 Time zone 1-4 hs (*) 2 languages Portuguese Spanish Argentina (*) In comparison to Sao Paulo, Brazil Holcim left it s operations in Venezuela (2008) and Panama (2009) 17

LASER IT Service Catalogue LASER ITSC Service Catalogue IT Services for Business Processes Financial and Controlling Sales and Logistics Procurement HCM (Human Capital Mgmt) Business Information Manufacturing CRM (Customer Relationship Mgmt) SRM (Supplier Relationship Mgmt) Others IT Services IT HelpDesk IT Services for Information Sharing Messaging Collaboration Portal IT Security IT Training IT Services for User Workplace User Support Desktop Mgmt File Sharing Print Services IT Projects User Mgmt IT Services for DataCenter Mgmt Data Center IT Services for Infrastructure Mgmt Remote Access Network Services

SAP Customer Center of Expertise Primary Certification Valid until Jan. 2014 19

Agenda 1. Holcim Group Overview 2. Holcim Group: IT Strategy 3. LATAM IT Clustering Process 4. Governance 5. BPO & Key Users Organization 6. Learnings and final message 20

Regional IT Service Centers tied to Central Coordination with Functional Authority EXCO IT Coordination Group ITAW ITSW ITQW EXCO Area Management IKM IT SWG IT StC IT StC IT StC IT StC HSEA NASC LASER Group companies Thailand Vietnam HSEE US Canada HSSA Brazil Argentina Sri Lanka Indonesia AI UK Singapore HGS Philippines NZ, Australia China Others Line management reporting line Functional management reporting line Spain Germany Czech Switzerland Italy Bulgaria Croatia Romania France Belgium Lebanon Netherland Morocco Hungary Austria Slovakia Russia Serbia Azerbaijan Holcim Trading AI US ACC ACL ACCCL Chile Colombia CR, NI, PA Ecuador El Salvador Mexico IT Steering Committee (StC) / IT Steering Working Group (SWG). In addition it is possible to have a Board, e.g. to cover legal requirements

LASER Governance LASER is not a legal entity Cost Center within each OpCo s IT Coordination Group: Global LATAM Representatives Business CEO Holcim Colombia IT LASER ITSC Head LASER Steering Committee: Regional Executive Committee Member for Latam CEO s of each country in Latam Head of Group Corporate IT St. Committee Delegate: CEO Holcim Colombia Meetings: 3 4 / year

LASER Governance BPO Business Process Owners (by functional area) Chair: CEO OpCo Participants: Business: Directors of each function per country Regional Management Support Organization RMSO Corporate Functional Heads of Holcim Group LASER Business Processes Coordinators Meetings: 1 3 / year Delegate of LASER St. Committee Supports and guides the ITSC Head, on behalf the LASER St. Committee Liaison between ITSC and Steering Committee Open and close communication on a regular basis for strategic and operational topics (eg. Business Planning, Finplan, Budget, organization, etc.) Meetings with the entire team 1-2 / year (and also, conference calls, video conference)

LASER Organization 24

Agenda 1. Holcim Group Overview 2. Holcim Group: IT Strategy 3. LATAM IT Clustering Process 4. Governance 5. BPO & Key Users Organization 6. Learnings and final message LASER IT - Service Center, Edson Massami Tsuda, 2013-01-15 25

Pillar: Regional / Local BPO s Group Company Level BPO BPO BPO e.g. Finance Regional Functional Team A, e.g. Finance BPO RBPO BPO BPO Regional level Regional Functional Team B RBPO RBPO: Responsible for managing business needs and assuring the common business processes at a regional level BPO: Responsible for managing business needs and assuring the common business processes at Group Company level ITSC Resources: Provide functional expertise, e.g. SAP ITSC Regional Functional Team C BPO RBPO BPO ITSC BPO BPO BPO BPO ITSC

LATAM: BPO Organization Key roles and responsibilities: Maintain sustainability of the LASER standard business model Focus on IT / business alignment Propose and monitor the SLA Service Level Agreement Chair of BPO Stream: CEO of a Group Company Leads the participants towards to the standardization of the business model, promoting the concept of Key Users, ensuring a better usage of the available systems and its functionalities. Agree on the priorities of the Business Projects and specifics requirements, to be integrated into the Business Planning, Financial Planning and Budget. Guarantee the full alignment between business and IT.

LATAM BPO s Organization Matrix (example) Argentina Brazil Chile Colombia Costa Rica Ecuador El Salvador Mexico Nicaragua RBPO - CEO Regional Business Support LASER Holcim Group Commercial Cement Operations AFR Finance Procurement Human Resources Directors of each function / area CEO of one country in Latam Regional functional support Ready-Mix Concrete Aggregates OH&S IT Manager per process Corporate functional support for Cement Operations, RMX and Aggregates

Key User Organization

LATAM: Key User Organization Key roles and responsibilities: On-site support for the end users Assure the effective usage of the systems Link between the end user and the ITSC Support Continuous Business Improvement process IT Service Center ITSC trains and supports Key Users End Users 1:10 Key Users train and support End Users Key Users GC 1 GC 2 GC 3 GC...

LATAM Experience: Key User (KU) Training is the key! The KU function must be part of the job description, and sufficient time must be available for the related tasks. Skills required: profound business process knowledge, communication and team work skills. 2 nd Key User must assure continuity (vacation, leave, etc.) Key User time assignment 20% KU activity 80% daily activities 100% time availability

Training of Key Users Training Catalogues Training Calendar In https://portal.holcim.com/irj/portal (LASER)

Agenda 1. Holcim Group Overview 2. Holcim Group: IT Strategy 3. LATAM IT Clustering Process 4. Governance 5. BPO & Key Users Organization 6. Learnings and final message 33

Learnings and final message 1/2 Active and visible level of commitment and support from main stakeholders: Executive Committee Member Countries CEO s Strong BPO Business Process Owners and Key Users organization in place Alignment between Business and IT: Discipline is a MUST! Human Resources High skilled IT personnel Development and retention strategy Knowledge sharing amongst the Holcim ITSC s 34

Learnings and final message 2/2 Sustainability of the Regional Standard Business Model is key! Close coordination between Business and IT All IT needs MUST BE addressed to LASER ITSC OpCo s are not allowed to hire / buy a local IT Development or IT Solutions, without LASER involvement and/or agreement LASER is fully accountable for the IT Budget at Regional Level in LatAm 35

Learnings and final message 2/2 Sustainability of the Regional Standard Business Model is key! Close coordination between Business and IT All IT needs MUST BE addressed to LASER ITSC OpCo s are not allowed to hire / buy a local IT Development or IT Solutions, without LASER involvement and/or agreement LASER is fully accountable for the IT Budget at Regional Level in LatAm and the Journey never ends 36

Strength. Performance. Passion. 10 June 2013 IKM/UBL

uso interno LASER ITSC Reunião Gerencial LASER Junho 2010 BIA 11.06.2010 / AC 38