Key success factors

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Organization Schlüsselfaktoren and Management zum Erfolg 23 Organizational chart as at February 28, 2007 Holcim Board of Directors Audit Committee Governance, Nomination & Compensation Committee Internal Audit* Markus Akermann CEO Benoît-H. Koch Hansueli Heé Thomas Knöpfel Paul Hugentobler Tom Clough Theophil H. Schlatter CFO Executive Committee North America UK, Norway Mediterranean 1 International Trade Europe 2 Latin America 3 Mexico South Asia East Asia 5 ASEAN 4 Oceania South & East Africa Regional Line Responsibility Bill Bolsover Javier de Benito Area Manager Urs Böhlen Area Manager Bernard Terver Area Manager Gérard Letellier Area Manager Area Managers Aggregates & Construction Materials, Sustainable Development Cement Manufacturing Legal & Compliance Strategy & Risk Management, Communication Commercial, Procurement, IT Human Resources, Branding Finance & Controlling Functional Responsibility Bill Bolsover Aggregates & Construction Materials Services Jacques Bourgon Cement Manufacturing Services Roland Köhler Strategy & Risk Management Stefan Wolfensberger Commercial Services Beat Fellmann Deputy CFO Corporate Functional Managers * Internal Audit reports to the Chairman of the Board of Directors. 1 Incl. Iberian Peninsula. 2 Excl. Iberian Peninsula, UK and Norway. 3 Excl. Mexico. 4 Excl. Philippines. 5 Incl. Philippines.
24 Value-Driven Corporate Management Innovation Holcim is stepping up the pace of innovation along the entire value chain, with research projects currently focusing on broadening the product range, reducing energy input and emissions and introducing new process technologies. Global network promoting research and development The strong consolidated Group growth of recent years has substantially expanded our research and development network. The dual product strategy launched in 2006, which is based on the two resources hydraulic binders and aggregates, has led to an increase in the importance of the segments “Aggregates” and “Other Construction Materials and Services” alongside the core cement business. Research and development activities have been restructured accordingly. While the central corporate staff units focus on long-term fundamental research, the local Group companies systematically pursue demand and client-driven development. Both tiers cooperate closely. Group-wide patent management has become more important. In 2006, Holcim invested a total of around CHF 25 million in research and development. The Group is also conducting research into fundamentally new types of cement. These are intended as additions to the traditional product range, enabling Holcim to gain greater competitiveness in a dynamic environment. Another area of research is concerned with the complex nanostructures of concrete which are crucial to its properties. Working in close cooperation with technical universities in Switzerland and abroad, Holcim is attempting to influence the complex nanostructures with a specific view to improving product properties. New building materials in vogue Holcim is committed to using new cementitious binders, which are more competitive and sustainable than steel, aluminum, wood or glass. A key factor is the durability of the concrete, which is the end-product. In late 2006, Holcim introduced CEMROC® to the French and Belgian markets. This novel type of environmentally efficient cement for special applications is based mainly on blast furnace slag. In comparison with conventional concrete, concrete made with CEMROC® is more resistant to a range of chemicals and is significantly more durable. The production of CEMROC® generates around 95 percent less CO2 than traditional Portland cement. Promising applications include concrete elements prefabricated under industrial conditions, as well as bridges, dams and components for sea defenses and port facilities. Use of self-compacting concrete is on the increase. Holcim offers products of this type in several countries. In Switzerland, they are already very well established under the brand names Selfpact® and Flextremo®. At the GreenBuilt exhibition held at the end of 2006, Holcim US launched an environmentally friendly product range under the brand name Envirocore TM . Thanks to their reduced clinker content, these highquality composite cements are making an important contribution to CO2 reduction.
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Key success factors

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